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Semi-Annual Report
NOVEMBER 30, 1998
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RETAIL FUNDS
Not FDIC Insured. - No bank guarantee. - May lose value.>
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TABLE OF CONTENTS NOVEMBER 30, 1998
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MESSAGE TO OUR SHAREHOLDERS............................................... 1
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA.......................... 2
Stable Income Fund............................................... 2
Intermediate Government Income Fund.............................. 3
Income Fund...................................................... 4
Total Return Bond Fund........................................... 5
Tax-Free Income Fund............................................. 6
Colorado Tax-Free Fund........................................... 7
Minnesota Tax-Free Fund.......................................... 8
Growth Balanced Fund............................................. 9
Income Equity Fund............................................... 10
ValuGrowth Stock Fund............................................ 11
Diversified Equity Fund.......................................... 12
Growth Equity Fund............................................... 13
Large Company Growth Fund........................................ 14
Diversified Small Cap Fund....................................... 15
Small Company Stock Fund......................................... 16
Small Cap Opportunities Fund..................................... 17
International Fund............................................... 18
NORWEST ADVANTAGE FUNDS
Statements of Assets and Liabilities...................................... 20
Statements of Operations.................................................. 24
Statements of Changes in Net Assets....................................... 28
Statements of Changes in Net Assets--Capital Stock Activity............... 32
Financial Highlights...................................................... 36
Notes to Financial Highlights............................................. 48
Notes to Financial Statements............................................. 49
Schedules of Investments.................................................. 54
Stable Income Fund............................................... 54
Intermediate Government Income Fund.............................. 54
Income Fund...................................................... 54
Total Return Bond Fund........................................... 56
Tax-Free Income Fund............................................. 56
Colorado Tax-Free Fund........................................... 59
Minnesota Tax-Free Fund.......................................... 61
Growth Balanced Fund............................................. 64
Income Equity Fund............................................... 64
ValuGrowth Stock Fund............................................ 64
Diversified Equity Fund.......................................... 66
Growth Equity Fund............................................... 66
Large Company Growth Fund........................................ 66
Diversified Small Cap Fund....................................... 66
Small Company Stock Fund......................................... 66
Small Cap Opportunities Fund..................................... 66
International Fund............................................... 67
Notes to Schedules of Investments................................ 68
</TABLE>
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TABLE OF CONTENTS (CONCLUDED) NOVEMBER 30, 1998
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CORE TRUST (DELAWARE)
Statements of Assets and Liabilities...................................... 72
Statements of Operations.................................................. 74
Statements of Changes in Net Assets....................................... 76
Financial Highlights...................................................... 78
Notes to Financial Statements............................................. 79
Schedules of Investments.................................................. 84
Stable Income Portfolio.......................................... 84
Managed Fixed Income Portfolio................................... 85
Positive Return Bond Portfolio................................... 87
Strategic Value Bond Portfolio................................... 87
Index Portfolio.................................................. 89
Income Equity Portfolio.......................................... 95
Disciplined Growth Portfolio..................................... 96
Large Company Growth Portfolio................................... 97
Small Cap Index Portfolio........................................ 98
Small Company Stock Portfolio.................................... 105
Small Cap Value Portfolio........................................ 107
Small Company Value Portfolio.................................... 108
Small Company Growth Portfolio................................... 110
International Portfolio.......................................... 112
Notes to Schedules of Investments................................ 114
SCHRODER CAPITAL FUNDS
Statements of Assets and Liabilities...................................... 116
Statements of Operations.................................................. 117
Statements of Changes in Net Assets....................................... 118
Financial Highlights...................................................... 119
Notes to Financial Statements............................................. 120
Schedules of Investments.................................................. 122
Schroder U.S. Smaller Companies Portfolio........................ 122
Schroder Global Growth Portfolio................................. 123
Schroder EM Core Portfolio....................................... 125
</TABLE>
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A MESSAGE TO OUR SHAREHOLDERS
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January 15, 1999
Dear Valued Shareholder,
We are pleased to present the Semi-Annual Report for
Norwest Advantage Funds for the period June 1 through
November 30, 1998. This report includes seventeen of our
thirty-nine Funds. Our six money market funds and three
WealthBuilder II Portfolios are reported separately.
Investors experienced unprecedented market volatility
from June through November. After climbing 20% during the
first half of the year, the stock market dropped nearly
20% between mid July and September, only to reach record
highs by late November. At the same time, government
bonds, especially the 30-year Treasury bond, rallied due
to an influx of cash from investors seeking shelter from
volatility.
While Asia's economic problems continued to shake the
world's financial markets, the U.S. economy withstood the
storm for three reasons. First, the fundamentals
underlying our economy remain solid: low unemployment, low
inflation and sustained growth. Second, both consumers and
businesses benefited from falling commodity prices. Third,
the Federal Reserve cut interest rates three times over a
two-month period, which restored confidence in financial
markets. Consumers capitalized on their good fortune with
a spending spree that has kept corporate profits healthy.
Not all economic sectors fared well in this
environment. Domestic large cap stocks and U.S. Treasuries
led the market, with many small cap stocks posting
negative returns. The performance gap was partly
attributed to worsening conditions overseas. Whenever
there's trouble in world markets, foreign investors seek a
haven for their money in quality investments, namely U.S.
blue chip stocks and Treasuries. The inflow of funds
helped trigger rallies in these investment categories.
Looking forward, we urge investors to manage their
performance expectations for 1999. Consumer spending will
ultimately slow, as will economic growth. Indeed, we've
already witnessed a slowdown in the manufacturing sector
due to weakening foreign demand for U.S. goods. Plus, we
may not have experienced the worst of Asia's problems.
In short, it's not a time to swing for home runs.
Rather, it's a time to be aware of risk and to diversify
your portfolio to earn more balanced returns. The fact is,
diversification is an investment concept that works in any
environment. With this in mind, we offer a broad selection
of mutual funds to meet any tolerance for risk and to help
you achieve your long-term goals.
In closing, you are undoubtedly aware that Norwest
Corporation has merged with Wells Fargo & Company. We are
confident the new organization will continue to serve your
investment needs; you can expect the same level of quality
service you have come to expect from Norwest, plus several
new products and services designed to give you even more
choices.
Thank you for choosing Norwest Advantage Funds. We
look forward to working with you in the future.
Sincerely,
/s/ John Y. Keffer
John Y. Keffer,
CHAIRMAN, NORWEST ADVANTAGE FUNDS
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INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED) NOVEMBER 30,
1998
- --------------------------------------------------------------------------------
STABLE INCOME FUND
The Stable Income Fund outperformed its benchmark, the Merrill One Year T-Bill
Index, for the six month period ending November 30, 1998 with a return of 3.19%
versus 3.13% for the Index. In addition, the Fund performed favorably versus its
Lipper peer groups, beating the Lipper Ultra Short category, which gained 2.56%,
and the Lipper Short Investment Grade Category, which rose 2.94%.
The domestic bond market performed well during the period, although with
increased volatility, as interest rates continued to decline across the entire
yield curve. Even with world uncertainty looming, the domestic economy continues
to show signs of steady, non-inflationary growth. U.S. Treasuries were still the
"safe haven" as investors surveyed the damage to the markets of Russia and Japan
in the first three months of the period. The Lehman Brothers Aggregate Bond
Index, a broad measure of bond returns in the U.S., returned 5.2% during the
past six months, well above historic levels.
The Fund's performance can be attributed to a significant yield advantage versus
the benchmark and the diversified nature of its asset allocation. Over the
period, the fund increased its positions in corporate and mortgage-backed
securities as credit spreads widened in response to the global recessionary
fears. The volatility evidenced in the bond market over the past six months
could continue until a clearer direction of the economy is apparent. The wider
risk premium environment makes several sectors appear more attractive. In this
environment, the Fund will continue to emphasize securities with strong
fundamentals and solid credit protection.
Fund strategy will continue to focus on selection of undervalued securities and
sectors rather than interest rate forecasting. We essentially manage the Fund
towards a targeted duration of one year. We attempt to outperform the benchmark
by building in a yield advantage, relative to the benchmark, through an emphasis
on corporate, mortgage-backed and asset-backed securities.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
STABLE INCOME FUND VS. ONE-YEAR U.S. TREASURY BILL ("INDEX") AND
MERRILL LYNCH TREASURY BILL 1 YEAR ("ML 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 two broad-based security market indices. The Fund's total return
includes operating expenses and sales charges (if applicable) that reduce
returns, while the total return of the Indices do not. 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 AS OF NOVEMBER 30, 1998
---------------------------------------------------------
A SHARES* B SHARES** I SHARES INDEX ML INDEX
----------- ----------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
ONE YEAR 4.37% 4.42% 6.07% 6.02% 6.02%
SINCE INCEPTION 5.99% 5.56% 6.39% 6.16% 5.97%
INCEPTION DATE 11/11/94 11/11/94 11/11/94 10/31/94 10/31/94
VALUE NOVEMBER 30,
1998 $12,667 $12,461 $12,860 $12,764 $12,673
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
I SHARES INDEX ML INDEX
<S> <C> <C> <C>
10/31/94 $10,000.00 $10,000.00 $10,000.00
11/30/94 $10,030.00 $9,995.20 $9,995.21
12/31/94 $10,070.00 $10,028.98 $10,028.95
01/31/95 $10,120.00 $10,128.97 $10,128.90
02/28/95 $10,200.00 $10,217.70 $10,217.68
03/31/95 $10,280.00 $10,276.97 $10,276.92
04/30/95 $10,340.00 $10,336.37 $10,336.34
05/31/95 $10,450.00 $10,428.46 $10,428.46
06/30/95 $10,510.00 $10,488.43 $10,488.40
07/31/95 $10,550.00 $10,540.24 $10,540.20
08/31/95 $10,610.00 $10,590.41 $10,590.39
09/30/95 $10,660.00 $10,634.36 $10,634.32
10/31/95 $10,720.00 $10,698.38 $10,698.37
11/30/95 $10,800.00 $10,761.82 $10,761.81
12/31/95 $10,868.70 $10,822.30 $10,822.29
01/31/96 $10,942.20 $10,890.92 $10,890.95
02/29/96 $10,942.20 $10,903.77 $10,903.81
03/31/96 $10,973.71 $10,933.53 $10,933.57
04/30/96 $11,001.46 $10,971.69 $10,971.70
05/31/96 $11,038.05 $11,011.63 $11,011.68
06/30/96 $11,100.90 $11,069.66 $11,069.75
07/31/96 $11,158.58 $11,112.06 $11,112.16
08/31/96 $11,197.79 $11,163.95 $11,164.10
09/30/96 $11,281.48 $11,240.20 $11,240.37
10/31/96 $11,366.44 $11,322.93 $11,323.05
11/30/96 $11,429.64 $11,378.64 $11,378.78
12/31/96 $11,462.44 $11,417.44 $11,417.54
01/31/97 $11,506.14 $11,473.61 $11,473.66
02/28/97 $11,546.86 $11,515.49 $11,515.49
03/31/97 $11,565.59 $11,544.17 $11,544.14
04/30/97 $11,665.67 $11,612.62 $11,612.62
05/31/97 $11,727.12 $11,684.85 $11,684.83
06/30/97 $11,790.93 $11,753.68 $11,753.63
07/31/97 $11,918.80 $11,838.19 $11,753.63
08/31/97 $11,926.80 $11,875.12 $11,790.35
09/30/97 $12,019.38 $11,938.18 $11,852.91
10/31/97 $12,106.45 $12,004.31 $11,918.62
11/30/97 $12,124.43 $12,039.49 $11,953.08
12/31/97 $12,203.20 $12,096.55 $12,010.07
01/31/98 $12,292.95 $12,175.18 $12,088.33
02/28/98 $12,334.98 $12,206.23 $12,119.12
03/31/98 $12,373.30 $12,268.72 $12,181.21
04/30/98 $12,431.06 $12,325.90 $12,238.04
05/31/98 $12,462.96 $12,375.82 $12,287.54
06/30/98 $12,532.79 $12,435.34 $12,346.57
07/31/98 $12,594.99 $12,493.92 $12,404.76
08/31/98 $12,699.22 $12,594.49 $12,504.62
09/30/98 $12,805.41 $12,697.26 $12,606.61
10/31/98 $12,838.24 $12,762.78 $12,671.68
11/30/98 $12,859.96 $12,763.80 $12,672.62
</TABLE>
* 5/2/96 was the inception date of Class A shares of the Fund. Returns prior to
that date are for Class I shares.
** 5/17/96 was the inception date of Class B shares of the Fund. Returns prior
to that date are for Class I shares, adjusted for Class B share expenses.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF THE OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES IN SALES
CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT CLASSES.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 1.5% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 1.5% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SECOND YEAR) FOR CLASS B SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDICES ARE UNMANAGED AND ARE NOT
AVAILABLE FOR INVESTMENT.
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2
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INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
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INTERMEDIATE GOVERNMENT INCOME FUND
For the six months ending November 30, 1998 the Intermediate Government Income
Fund provided its shareholders a total return that outpaced most of its
competitors. The Fund significantly outperformed the benchmark, the Lipper
Intermediate Government Average, by 155 basis points in total return, returning
6.14% versus 4.59% for the peer group.
During the first four months, we kept our average maturity longer than our
competition, as we had for the last two years. This strategy proved to be
successful as interest rates declined in response to a weak stock market and
continued problems in Asia and Russia. We began to shorten our maturities in
October, as we became concerned that interest rates would move back up after
moving down so quickly.
During the past two years, we have provided outperformance by over-weighting
U.S. Treasury securities. In October, we began to add more agency notes and
mortgage-backed securities as yield spreads over equivalent Treasuries had
widened considerably. Also, we felt that the bulk of the interest rate move was
now behind us and we needed to look toward additional "spread product", such as
mortgage-backs to provide incremental yield.
As we enter 1999, we are still bullish on the bond market but plan to continue
adding more mortgage-backed securities in anticipation of a more stable period
for interest rates.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
INTERMEDIATE GOVERNMENT INCOME FUND VS. LEHMAN BROTHERS INTERMEDIATE GOVERNMENT
INDEX
("LEHMAN INDEX") AND LIPPER INTERMEDIATE U.S. 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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
---------------------------------------------------------------
LEHMAN LIPPER
A SHARES* B SHARES** I SHARES*** INDEX AVERAGE+
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 5.70% 7.28% 10.10% 8.92% 8.28%
FIVE YEAR 4.72% 4.79% 5.58% 7.15% 5.89%
TEN YEAR 7.06% 6.71% 7.51% 8.65% 7.76%
VALUE NOVEMBER 30,
1998 $ 19,792 $ 19,146 $ 20,634 $ 22,945 $ 21,129
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
I SHARES LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
11/30/88 $10,000.00 $10,000.00 $10,000.00
12/31/88 $10,057.13 $10,010.00 $9,984.00
01/31/89 $10,137.51 $10,110.10 $10,098.82
02/28/89 $10,170.67 $10,066.63 $10,051.35
03/31/89 $10,238.67 $10,113.94 $10,088.54
04/30/89 $10,343.37 $10,318.24 $10,268.12
05/31/89 $10,450.50 $10,517.38 $10,478.61
06/30/89 $10,555.22 $10,785.58 $10,722.77
07/31/89 $10,664.02 $11,004.52 $10,907.20
08/31/89 $10,693.34 $10,855.96 $10,790.49
09/30/89 $10,773.67 $10,908.07 $10,832.57
10/31/89 $10,885.16 $11,137.14 $11,052.47
11/30/89 $10,999.21 $11,247.40 $11,146.42
12/31/89 $11,034.86 $11,280.02 $11,176.52
01/31/90 $10,959.67 $11,210.08 $11,063.63
02/28/90 $10,991.54 $11,251.56 $11,103.46
03/31/90 $11,011.71 $11,265.06 $11,109.01
04/30/90 $10,973.19 $11,226.76 $11,021.25
05/31/90 $11,187.16 $11,467.01 $11,302.29
06/30/90 $11,316.18 $11,617.23 $11,454.88
07/31/90 $11,476.95 $11,779.87 $11,619.83
08/31/90 $11,423.73 $11,737.46 $11,509.44
09/30/90 $11,516.70 $11,841.93 $11,594.61
10/31/90 $11,662.24 $12,006.53 $11,737.22
11/30/90 $11,863.71 $12,187.83 $11,968.44
12/31/90 $12,003.91 $12,356.02 $12,140.79
01/31/91 $12,113.30 $12,483.29 $12,271.91
02/28/91 $12,183.63 $12,559.43 $12,349.22
03/31/91 $12,242.21 $12,628.51 $12,410.97
04/30/91 $12,369.24 $12,758.58 $12,535.08
05/31/91 $12,439.09 $12,830.03 $12,602.77
06/30/91 $12,408.98 $12,840.30 $12,586.38
07/31/91 $12,543.33 $12,978.97 $12,747.49
08/31/91 $12,796.56 $13,225.57 $13,010.09
09/30/91 $13,046.47 $13,450.41 $13,252.08
10/31/91 $13,172.00 $13,603.74 $13,397.85
11/30/91 $13,333.26 $13,762.91 $13,533.17
12/31/91 $13,684.31 $14,097.34 $13,898.56
01/31/92 $13,487.58 $13,962.01 $13,723.44
02/29/92 $13,520.75 $14,005.29 $13,787.94
03/31/92 $13,445.90 $13,947.87 $13,714.87
04/30/92 $13,566.35 $14,073.40 $13,816.36
05/31/92 $13,756.30 $14,283.09 $14,034.65
06/30/92 $13,954.40 $14,488.77 $14,215.70
07/31/92 $14,227.77 $14,766.96 $14,455.95
08/31/92 $14,394.23 $14,917.58 $14,593.28
09/30/92 $14,595.64 $15,123.44 $14,769.86
10/31/92 $14,395.04 $14,941.96 $14,577.85
11/30/92 $14,346.44 $14,879.20 $14,532.66
12/31/92 $14,505.11 $15,074.12 $14,720.13
01/31/93 $14,765.25 $15,354.50 $14,989.51
02/28/93 $15,016.78 $15,580.21 $15,211.35
03/31/93 $15,114.94 $15,637.86 $15,263.07
04/30/93 $15,244.51 $15,759.83 $15,376.02
05/31/93 $15,224.29 $15,717.28 $15,362.18
06/30/93 $15,442.35 $15,945.18 $15,612.58
07/31/93 $15,472.81 $15,977.07 $15,662.54
08/31/93 $15,721.82 $16,215.13 $15,905.31
09/30/93 $15,816.78 $16,281.61 $15,959.39
10/31/93 $15,863.03 $16,320.69 $15,997.69
11/30/93 $15,727.80 $16,239.09 $15,869.71
12/31/93 $15,804.31 $16,305.67 $15,937.95
01/31/94 $15,945.77 $16,467.09 $16,113.27
02/28/94 $15,623.53 $16,241.49 $15,849.01
03/31/94 $15,286.55 $16,004.37 $15,536.78
04/30/94 $15,018.69 $15,900.34 $15,389.19
05/31/94 $14,797.86 $16,011.64 $15,355.33
06/30/94 $14,715.85 $16,043.66 $15,330.76
07/31/94 $14,956.66 $16,253.84 $15,546.92
08/31/94 $14,907.14 $16,300.97 $15,559.36
09/30/94 $14,814.27 $16,165.67 $15,375.76
10/31/94 $14,812.28 $16,168.91 $15,348.08
11/30/94 $14,778.18 $16,096.15 $15,289.76
12/31/94 $14,831.39 $16,149.26 $15,361.62
01/31/95 $15,009.63 $16,412.50 $15,610.48
02/28/95 $15,328.87 $16,729.26 $15,928.94
03/31/95 $15,427.30 $16,821.27 $16,013.36
04/30/95 $15,613.53 $17,016.40 $16,200.72
05/31/95 $16,039.18 $17,496.26 $16,733.72
06/30/95 $16,153.58 $17,608.23 $16,834.12
07/31/95 $16,103.03 $17,617.04 $16,795.40
08/31/95 $16,225.41 $17,763.26 $16,965.04
09/30/95 $16,321.18 $17,882.27 $17,102.45
10/31/95 $16,488.78 $18,078.98 $17,304.26
11/30/95 $16,696.29 $18,299.54 $17,534.41
12/31/95 $16,870.13 $18,480.71 $17,744.82
01/31/96 $17,004.86 $18,635.95 $17,854.84
02/29/96 $16,791.05 $18,438.40 $17,569.16
03/31/96 $16,679.76 $18,353.59 $17,442.66
04/30/96 $16,620.80 $18,300.36 $17,332.78
05/31/96 $16,587.15 $18,291.21 $17,287.71
06/30/96 $16,747.70 $18,477.78 $17,476.15
07/31/96 $16,784.71 $18,535.06 $17,514.59
08/31/96 $16,747.19 $18,555.45 $17,486.57
09/30/96 $16,995.41 $18,794.82 $17,755.86
10/31/96 $17,332.64 $19,103.05 $18,102.10
11/30/96 $17,594.67 $19,435.45 $18,382.69
12/31/96 $17,398.56 $19,330.49 $18,217.24
01/31/97 $17,468.96 $19,403.95 $18,262.78
02/28/97 $17,477.56 $19,435.00 $18,290.18
03/31/97 $17,280.60 $19,324.22 $18,107.28
04/30/97 $17,506.74 $19,602.49 $18,342.67
05/31/97 $17,643.28 $19,771.07 $18,483.91
06/30/97 $17,828.64 $19,992.50 $18,668.75
07/31/97 $18,304.14 $20,560.29 $19,111.20
08/31/97 $18,117.45 $20,356.74 $18,952.58
09/30/97 $18,395.10 $20,662.09 $19,204.65
10/31/97 $18,683.45 $21,019.55 $19,460.07
11/30/97 $18,741.74 $21,065.79 $19,512.61
12/31/97 $18,932.26 $21,236.42 $19,686.27
01/31/98 $19,225.95 $21,512.50 $19,944.16
02/28/98 $19,157.14 $21,488.83 $19,904.27
03/31/98 $19,186.88 $21,555.45 $19,958.01
04/30/98 $19,275.98 $21,658.92 $20,033.86
05/31/98 $19,440.95 $21,808.36 $20,202.14
06/30/98 $19,603.51 $21,954.48 $20,353.66
07/31/98 $19,638.56 $22,037.91 $20,390.29
08/31/98 $20,084.46 $22,454.42 $20,751.20
09/30/98 $20,780.12 $22,977.61 $21,216.03
10/31/98 $20,687.78 $23,016.67 $21,105.70
11/30/98 $20,634.18 $22,945.32 $21,128.92
</TABLE>
* 5/2/96 was the inception date of Class A shares of the Fund. Returns prior to
that date are for Class I shares.
** 5/17/96 was the inception date of Class B shares of the Fund. Returns prior
to that date are for Class I shares, adjusted for Class B share expenses.
Performance shown for Class B shares for the period prior to November 11, 1994
reflects performance of the shares of the predecessor collective investment fund
adjusted to reflect Class B share expenses (before waivers and reimbursements).
*** Prior to November 11, 1994, Norwest Investment Management managed a
collective investment fund with investment objectives and polices that were, in
all material respects, equivalent to the Fund. The performance of the Fund
includes the performance of the predecessor collective investment fund for the
periods before it became a mutual fund on November 11, 1994. The collective
investment 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, including
any applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 (the "1940 Act"), nor subject to certain
investment limitations, diversification requirements and other restrictions
imposed by the 1940 Act and the Internal Revenue Code, which, if applicable, may
have adversely affected the performance results.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES IN SALES
CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT CLASSES.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 4.0% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 3.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
FOURTH YEAR) FOR CLASS B SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
3
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
INCOME FUND
For the six months ending November 30, 1998, the Income Fund provided its
shareholders a total return that outpaced most of its competitors. The Fund's
total return exceeded its benchmark, the Lipper Corporate A Average, by 136
basis points, returning 5.46% vs. 4.10% for the peer group.
During the first four months, we kept our average maturity longer than our
competition, as we had for the previous two years. This strategy proved to be
successful as interest rates declined in response to a weak stock market and
continued problems in Asia and Russia. We began to shorten our maturities in
October, as we became concerned that interest rates would move back up after
moving down so quickly.
During the past two years, we have provided outperformance by over-weighting
U.S. Treasury securities. However in October, we began to add more high-quality
corporate bonds as yield spreads over equivalent Treasuries widened
considerably; a strategy that has also contributed to our outperformance. In
addition, we felt that the bulk of the interest rate move was now behind us and
we needed to look toward additional "spread product", such as corporate bonds to
provide incremental yield.
As we enter 1999, we are still bullish on the bond market but plan to continue
adding more corporate and mortgage-backed securities in anticipation of a more
stable period for interest rates.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER SHARES WOULD BE LOWER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
INCOME FUND VS. LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE INDEX
("LEHMAN INDEX I"), LEHMAN BROTHERS AGGREGATE INDEX ("LEHMAN INDEX II") 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 two broad-based securities market indices and a peer based
average. The Fund's total return includes operating expenses and sales charges
(if applicable) that reduce returns, while the total return of the Indices does
not. The Lipper Average does not include sales charges but does include
management fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
----------------------------------------------------------------------------
LEHMAN LEHMAN LIPPER
A SHARES B SHARES* I SHARES** INDEX I INDEX II+ AVERAGE++
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ONE YEAR 5.52% 7.10% 9.92% 8.85% 9.45% 8.14%
FIVE YEAR 5.13% 5.20% 5.99% 6.60% 6.75% 6.41%
TEN YEAR 7.97% 7.59% 8.40% 8.47% 8.94% 8.66%
VALUE NOVEMBER 30,
1998 $ 21,530 $ 21,517 $ 22,399 $ 22,564 $ 23,552 $ 22,960
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
A SHARES LEHMAN INDEX I LEHMAN INDEX II LIPPER AVERAGE
<S> <C> <C> <C> <C>
11/30/88 $9,600.00 $10,000.00 $10,000.00 $10,000.00
12/31/88 $9,650.18 $10,009.00 $10,011.00 $10,048.00
01/31/89 $9,735.31 $10,114.09 $10,155.16 $10,181.64
02/28/89 $9,761.39 $10,072.63 $10,081.03 $10,122.58
03/31/89 $9,813.63 $10,115.94 $10,124.37 $10,161.05
04/30/89 $9,907.39 $10,318.26 $10,335.97 $10,338.87
05/31/89 $10,034.16 $10,522.56 $10,607.81 $10,580.80
06/30/89 $10,159.33 $10,787.73 $10,931.35 $10,895.05
07/31/89 $10,265.31 $11,008.88 $11,164.19 $11,084.62
08/31/89 $10,300.32 $10,866.86 $10,998.96 $10,941.63
09/30/89 $10,355.19 $10,917.94 $11,055.05 $10,977.74
10/31/89 $10,475.44 $11,149.40 $11,327.00 $11,200.59
11/30/89 $10,542.29 $11,255.32 $11,434.61 $11,280.11
12/31/89 $10,588.84 $11,285.70 $11,465.48 $11,301.54
01/31/90 $10,619.02 $11,213.48 $11,329.05 $11,143.32
02/28/90 $10,672.98 $11,254.97 $11,365.30 $11,160.04
03/31/90 $10,734.66 $11,269.60 $11,373.25 $11,168.96
04/30/90 $10,727.32 $11,230.15 $11,268.62 $11,041.64
05/31/90 $10,907.72 $11,477.22 $11,602.17 $11,349.70
06/30/90 $11,043.43 $11,631.01 $11,788.97 $11,532.43
07/31/90 $11,193.08 $11,792.68 $11,951.65 $11,676.58
08/31/90 $11,188.07 $11,744.33 $11,791.50 $11,476.92
09/30/90 $11,203.00 $11,834.76 $11,889.37 $11,517.08
10/31/90 $11,220.97 $11,972.05 $12,040.37 $11,639.17
11/30/90 $11,407.32 $12,154.02 $12,299.23 $11,897.56
12/31/90 $11,563.13 $12,320.53 $12,491.10 $12,084.35
01/31/91 $11,711.07 $12,444.97 $12,645.99 $12,208.82
02/28/91 $11,918.25 $12,544.53 $12,753.48 $12,351.66
03/31/91 $12,041.01 $12,629.83 $12,841.48 $12,444.30
04/30/91 $12,184.81 $12,767.50 $12,980.17 $12,596.12
05/31/91 $12,257.95 $12,845.38 $13,055.45 $12,660.36
06/30/91 $12,247.33 $12,854.37 $13,048.93 $12,637.57
07/31/91 $12,420.44 $12,997.06 $13,230.31 $12,801.86
08/31/91 $12,727.12 $13,245.30 $13,516.08 $13,107.82
09/30/91 $13,007.71 $13,473.12 $13,790.46 $13,393.57
10/31/91 $13,157.89 $13,626.71 $13,943.53 $13,524.83
11/30/91 $13,318.99 $13,783.42 $14,071.81 $13,647.90
12/31/91 $13,744.70 $14,119.73 $14,489.75 $14,136.50
01/31/92 $13,592.46 $13,991.24 $14,292.69 $13,913.14
02/29/92 $13,630.18 $14,045.81 $14,385.59 $13,982.71
03/31/92 $13,569.77 $13,991.03 $14,305.03 $13,916.99
04/30/92 $13,639.35 $14,114.15 $14,408.02 $13,994.92
05/31/92 $13,922.50 $14,332.92 $14,680.34 $14,279.02
06/30/92 $14,110.98 $14,545.05 $14,882.92 $14,488.92
07/31/92 $14,522.60 $14,834.50 $15,186.54 $14,869.98
08/31/92 $14,634.58 $14,982.84 $15,339.92 $14,993.40
09/30/92 $14,898.30 $15,186.61 $15,522.47 $15,179.32
10/31/92 $14,665.93 $14,989.18 $15,316.02 $14,930.38
11/30/92 $14,644.35 $14,936.72 $15,319.08 $14,933.37
12/31/92 $14,838.32 $15,132.39 $15,562.65 $15,187.23
01/31/93 $15,102.84 $15,427.47 $15,861.46 $15,515.28
02/28/93 $15,373.94 $15,671.23 $16,139.03 $15,869.03
03/31/93 $15,422.41 $15,733.91 $16,206.82 $15,929.33
04/30/93 $15,545.72 $15,859.78 $16,320.26 $16,034.46
05/31/93 $15,518.37 $15,824.89 $16,341.48 $16,042.48
06/30/93 $15,741.80 $16,073.34 $16,637.26 $16,401.83
07/31/93 $15,803.62 $16,111.92 $16,732.09 $16,529.76
08/31/93 $16,064.78 $16,368.10 $17,024.90 $16,909.95
09/30/93 $16,093.36 $16,436.84 $17,070.87 $16,962.37
10/31/93 $16,137.97 $16,481.22 $17,134.03 $17,040.40
11/30/93 $16,093.48 $16,388.93 $16,988.39 $16,825.69
12/31/93 $16,159.60 $16,464.32 $17,080.13 $16,911.50
01/31/94 $16,305.80 $16,647.07 $17,310.71 $17,160.10
02/28/94 $16,061.52 $16,400.69 $17,009.51 $16,799.74
03/31/94 $15,751.22 $16,130.08 $16,589.37 $16,371.34
04/30/94 $15,422.66 $16,020.40 $16,456.66 $16,189.62
05/31/94 $15,273.87 $16,031.61 $16,455.01 $16,139.43
06/30/94 $15,217.53 $16,033.22 $16,418.81 $16,084.56
07/31/94 $15,416.64 $16,264.09 $16,745.55 $16,364.43
08/31/94 $15,441.34 $16,314.51 $16,765.64 $16,367.70
09/30/94 $15,178.63 $16,164.42 $16,519.18 $16,120.55
10/31/94 $15,134.82 $16,162.96 $16,504.32 $16,077.03
11/30/94 $14,929.67 $16,090.23 $16,468.01 $16,033.62
12/31/94 $15,027.87 $16,146.55 $16,581.64 $16,157.08
01/31/95 $15,263.07 $16,419.42 $16,909.95 $16,436.59
02/28/95 $15,600.32 $16,759.31 $17,312.41 $16,821.21
03/31/95 $15,698.11 $16,854.83 $17,418.02 $16,938.96
04/30/95 $15,967.93 $17,062.15 $17,661.87 $17,171.02
05/31/95 $16,571.22 $17,577.42 $18,345.38 $17,864.73
06/30/95 $16,647.76 $17,695.19 $18,479.30 $17,977.28
07/31/95 $16,575.76 $17,696.96 $18,438.65 $17,896.38
08/31/95 $16,788.77 $17,858.01 $18,661.76 $18,125.46
09/30/95 $16,951.02 $17,986.58 $18,842.78 $18,317.59
10/31/95 $17,162.28 $18,186.23 $19,087.73 $18,577.69
11/30/95 $17,380.26 $18,424.47 $19,374.05 $18,867.51
12/31/95 $17,633.99 $18,617.93 $19,645.29 $19,158.07
01/31/96 $17,720.49 $18,778.05 $19,774.94 $19,248.11
02/29/96 $17,338.63 $18,558.34 $19,430.86 $18,824.65
03/31/96 $17,193.54 $18,463.69 $19,294.84 $18,670.29
04/30/96 $17,046.28 $18,399.07 $19,186.79 $18,524.66
05/31/96 $16,999.38 $18,384.35 $19,148.42 $18,489.46
06/30/96 $17,214.37 $18,579.23 $19,405.01 $18,711.34
07/31/96 $17,255.32 $18,634.96 $19,457.40 $18,746.89
08/31/96 $17,195.73 $18,649.87 $19,424.32 $18,698.15
09/30/96 $17,475.89 $18,909.11 $19,762.31 $19,036.58
10/31/96 $17,873.66 $19,243.80 $20,201.03 $19,472.52
11/30/96 $18,179.05 $19,497.81 $20,546.47 $19,848.34
12/31/96 $17,971.21 $19,373.03 $20,355.39 $19,630.01
01/31/97 $17,995.19 $19,448.58 $20,417.71 $19,661.42
02/28/97 $17,993.28 $19,485.54 $20,468.49 $19,722.37
03/31/97 $17,741.03 $19,351.09 $20,241.68 $19,465.98
04/30/97 $18,013.35 $19,577.49 $20,544.68 $19,734.61
05/31/97 $18,153.69 $19,739.99 $20,738.89 $19,910.25
06/30/97 $18,389.16 $19,919.62 $20,985.04 $20,167.09
07/31/97 $19,081.51 $20,323.99 $20,985.04 $20,794.28
08/31/97 $18,767.52 $20,222.37 $20,806.04 $20,544.75
09/30/97 $19,125.12 $20,456.95 $21,112.88 $20,869.36
10/31/97 $19,487.16 $20,684.02 $21,419.17 $21,144.83
11/30/97 $19,588.29 $20,729.53 $21,517.80 $21,231.53
12/31/97 $19,814.25 $20,895.36 $21,734.44 $21,435.35
01/31/98 $20,122.02 $21,169.09 $22,013.47 $21,707.58
02/28/98 $20,015.53 $21,152.16 $21,996.89 $21,664.17
03/31/98 $20,061.17 $21,219.84 $22,072.48 $21,733.49
04/30/98 $20,144.30 $21,325.94 $22,187.69 $21,829.12
05/31/98 $20,416.72 $21,481.62 $22,398.17 $22,056.14
06/30/98 $20,623.93 $21,619.10 $22,588.13 $22,241.41
07/31/98 $20,625.21 $21,694.77 $22,636.17 $22,248.08
08/31/98 $21,005.39 $22,035.38 $23,004.55 $22,517.29
09/30/98 $21,596.82 $22,588.47 $23,543.23 $23,028.43
10/31/98 $21,383.13 $22,565.88 $23,418.75 $22,775.12
11/30/98 $21,529.79 $22,563.62 $23,551.68 $22,959.59
</TABLE>
* 8/5/93 was the inception date of Class B shares of the Fund. Returns prior to
that date are for Class A shares, adjusted for Class B share expenses.
** 8/2/93 was the inception date of Class I shares of the Fund. Returns prior to
that date are for Class A shares.
+ Because the Fund includes asset backed securities, and has a longer duration
than reflected in Lehman Index I, Lehman Index II is a more suitable benchmark.
For this reason, we have also included the comparison to Lehman Index II.
++ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE 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 RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 4.0% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 3.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
FOURTH YEAR) FOR CLASS B SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDICES ARE UNMANAGED AND ARE NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
4
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
TOTAL RETURN BOND FUND
The Total Return Bond Fund outperformed its benchmark, the Lipper Corporate Debt
A Rated Funds Average, for the six month period ending November 30, 1998 with a
return of 4.43% versus 4.10% for the Average. The outperformance was encouraging
in a difficult market environment. Lipper peers with similar portfolio
allocations to spread product were among the worst performing funds in the
category.
The domestic bond market performed well during the period, although with
increased volatility, as interest rates continued to decline across the entire
yield curve. Even with world uncertainty looming, the domestic economy continues
to show signs of steady, non-inflationary growth. U.S. Treasuries were still the
"safe haven" as investors surveyed the damage to the markets of Russia and Japan
in the first three months of the period. The Lehman Brothers Aggregate Bond
Index, a broad measure of bond returns in the U.S., returned 5.2% during the
past six months, well above historic levels.
Over the period, the fund increased its positions in corporate and
mortgage-backed securities as credit spreads widened in response to the global
recessionary fears. The volatility evidenced in the bond market over the past
six months could continue until a clearer direction of the economy is apparent.
The wider risk premium environment makes several sectors appear more attractive.
In this environment, the Fund will continue to emphasize securities with strong
fundamentals and solid credit protection.
Fund strategy will continue to focus on selection of undervalued securities and
sectors rather than interest rate forecasting. Particular emphasis will be
placed on higher current income instruments in order to enhance returns.
Strategic diversification will enhance performance in varying economic and
interest rate cycles while avoiding excessive risk concentrations.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
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 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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
---------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES I SHARES INDEX AVERAGE+
--------- ----------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 3.74% 5.25% 8.17% 8.85% 8.14%
SINCE INCEPTION 5.47% 5.60% 6.40% 6.62% 6.41%
INCEPTION DATE 12/31/93 12/31/93 12/31/93 12/31/93 12/31/93
VALUE NOVEMBER 30,
1998 $12,994 $13,078 $13,567 $13,705 $13,576
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
A SHARES B SHARES I SHARES LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C> <C> <C>
12/31/93 $9,600.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
01/31/94 $9,659.23 $10,061.70 $10,061.48 $10,111.00 $10,147.00
02/28/94 $9,551.87 $9,954.43 $9,950.37 $9,961.36 $9,933.91
03/31/94 $9,464.96 $9,857.00 $9,860.30 $9,796.99 $9,680.60
04/30/94 $9,407.13 $9,791.19 $9,799.92 $9,730.38 $9,573.14
05/31/94 $9,413.01 $9,780.42 $9,806.26 $9,737.19 $9,543.47
06/30/94 $9,408.78 $9,780.70 $9,802.30 $9,738.16 $9,511.02
07/31/94 $9,535.29 $9,895.12 $9,934.10 $9,878.39 $9,676.51
08/31/94 $9,552.62 $9,906.89 $9,952.16 $9,909.01 $9,678.45
09/30/94 $9,481.30 $9,826.48 $9,877.86 $9,817.85 $9,532.30
10/31/94 $9,481.71 $9,821.00 $9,878.41 $9,816.97 $9,506.56
11/30/94 $9,474.92 $9,818.18 $9,871.33 $9,772.79 $9,480.90
12/31/94 $9,536.02 $9,863.98 $9,934.99 $9,806.99 $9,553.90
01/31/95 $9,682.27 $10,009.30 $10,087.35 $9,972.73 $9,719.18
02/28/95 $9,847.94 $10,185.33 $10,260.21 $10,179.17 $9,946.61
03/31/95 $9,909.83 $10,231.54 $10,324.84 $10,237.19 $10,016.24
04/30/95 $10,014.89 $10,333.97 $10,434.46 $10,363.11 $10,153.46
05/31/95 $10,299.38 $10,620.53 $10,731.02 $10,676.07 $10,563.66
06/30/95 $10,370.30 $10,697.47 $10,805.09 $10,747.60 $10,630.21
07/31/95 $10,361.26 $10,670.59 $10,795.70 $10,748.68 $10,582.37
08/31/95 $10,440.96 $10,756.84 $10,878.77 $10,846.49 $10,717.83
09/30/95 $10,521.33 $10,832.57 $10,962.54 $10,924.59 $10,831.44
10/31/95 $10,621.78 $10,929.34 $11,078.91 $11,045.85 $10,985.24
11/30/95 $10,733.27 $11,037.26 $11,195.19 $11,190.55 $11,156.61
12/31/95 $10,850.41 $11,139.14 $11,305.79 $11,308.05 $11,328.43
01/31/96 $10,907.96 $11,191.49 $11,365.88 $11,405.30 $11,381.67
02/29/96 $10,763.54 $11,048.18 $11,215.54 $11,271.86 $11,131.27
03/31/96 $10,699.65 $10,975.48 $11,149.09 $11,214.37 $11,040.00
04/30/96 $10,655.54 $10,923.50 $11,103.15 $11,175.12 $10,953.88
05/31/96 $10,650.54 $10,899.52 $11,097.99 $11,166.18 $10,933.07
06/30/96 $10,748.73 $11,005.30 $11,212.18 $11,284.54 $11,064.27
07/31/96 $10,773.09 $11,023.30 $11,237.64 $11,318.39 $11,085.29
08/31/96 $10,766.59 $11,009.24 $11,230.95 $11,327.45 $11,056.47
09/30/96 $10,911.86 $11,163.12 $11,382.38 $11,484.90 $11,256.59
10/31/96 $11,120.95 $11,357.68 $11,600.30 $11,688.18 $11,514.37
11/30/96 $11,296.49 $11,541.48 $11,783.29 $11,842.47 $11,736.59
12/31/96 $11,152.39 $11,374.83 $11,632.80 $11,766.68 $11,607.49
01/31/97 $11,180.58 $11,408.31 $11,674.57 $11,812.57 $11,626.06
02/28/97 $11,248.24 $11,458.65 $11,732.80 $11,835.01 $11,662.10
03/31/97 $11,138.00 $11,351.80 $11,618.00 $11,753.35 $11,510.50
04/30/97 $11,281.38 $11,490.75 $11,779.95 $11,890.86 $11,669.34
05/31/97 $11,379.00 $11,582.77 $11,869.21 $11,989.56 $11,773.20
06/30/97 $11,498.34 $11,696.93 $11,993.64 $12,098.66 $11,925.07
07/31/97 $11,778.28 $11,961.29 $12,285.39 $12,344.26 $12,295.94
08/31/97 $11,679.84 $11,866.32 $12,182.88 $12,282.54 $12,148.39
09/30/97 $11,829.98 $12,011.30 $12,352.23 $12,425.02 $12,340.34
10/31/97 $12,002.35 $12,165.83 $12,519.03 $12,562.94 $12,503.23
11/30/97 $12,024.75 $12,193.67 $12,542.45 $12,590.58 $12,554.49
12/31/97 $12,146.29 $12,309.05 $12,669.16 $12,691.30 $12,675.02
01/31/98 $12,263.54 $12,419.85 $12,791.42 $12,857.56 $12,835.99
02/28/98 $12,230.52 $12,379.44 $12,770.29 $12,847.27 $12,810.32
03/31/98 $12,268.01 $12,409.54 $12,809.44 $12,888.38 $12,851.31
04/30/98 $12,329.02 $12,463.52 $12,859.74 $12,952.82 $12,907.86
05/31/98 $12,455.37 $12,583.14 $12,991.47 $13,047.38 $13,042.10
06/30/98 $12,568.05 $12,689.07 $13,108.96 $13,130.88 $13,151.65
07/31/98 $12,577.78 $12,690.93 $13,119.17 $13,176.84 $13,155.60
08/31/98 $12,796.47 $12,903.10 $13,347.13 $13,383.72 $13,314.78
09/30/98 $13,041.00 $13,141.19 $13,602.00 $13,719.65 $13,617.02
10/31/98 $12,892.44 $12,983.60 $13,447.28 $13,705.93 $13,467.24
11/30/98 $12,993.81 $13,077.63 $13,566.78 $13,704.56 $13,576.32
</TABLE>
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. Although gathered from reliable sources, data
accuracy and completeness cannot be guaranteed.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 4.0% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 3.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
FOURTH YEAR) FOR CLASS B SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
5
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
TAX-FREE INCOME FUND
The Tax Free Income Fund outpaced its benchmark, the Lipper General Municipal
Bond Funds Average, for the six month period ending November 30, 1998 with a
return of 4.11% versus 3.17% for the Average.
During the period, interest rates on municipal bonds declined 25 basis points in
the 10-year range and 15 basis points on long term bonds. In early October,
however, interest rates declined to historical record low levels before
rebounding. The fund began the fiscal year (June 1, 1998) positioned to benefit
from declining interest rates. During the first week of October, we felt the
market had risen to unsustainable levels and elected to sell over 9% of the
funds holdings in an effort to lock in some of the funds' profits. This was the
first shift of this magnitude made to the interest rate exposure of the fund in
a number of years. By mid-November, prices had fallen and we reinvested the cash
raised at much better prices. This shift turned out to be very beneficial to the
performance of the fund.
Our focus remains on three performance related goals: seeking to produce total
return greater than our peers, to consistently pay a high tax free dividend, and
to distribute the least amount of capital gains possible.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
----------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES* I SHARES** INDEX AVERAGE+
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 4.17% 5.70% 8.40% 8.11% 6.82%
FIVE YEAR 6.05% 6.10% 6.90% 7.01% 5.71%
SINCE INCEPTION 6.65% 6.34% 7.11% 8.35% 7.26%
INCEPTION DATE 8/1/89 8/1/89 8/1/89 7/31/89 7/31/89
VALUE NOVEMBER 30,
1998 $18,238 $17,753 $18,999 $21,147 $19,238
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
A Shares Lehman Index Lipper Average
<S> <C> <C> <C>
07/31/89 $9,600.00 $10,000.00 $10,000.00
08/31/89 $9,495.72 $9,941.00 $9,897.00
09/30/89 $9,453.29 $9,894.28 $9,867.31
10/31/89 $9,596.87 $10,007.07 $9,985.72
11/30/89 $9,759.18 $10,174.19 $10,143.49
12/31/89 $9,806.49 $10,278.98 $10,212.47
01/31/90 $9,756.20 $10,248.15 $10,104.21
02/28/90 $9,828.76 $10,319.88 $10,204.25
03/31/90 $9,837.45 $10,303.37 $10,201.19
04/30/90 $9,724.20 $10,372.41 $10,068.57
05/31/90 $9,945.86 $10,597.49 $10,332.37
06/30/90 $10,044.57 $10,697.10 $10,431.56
07/31/90 $10,195.97 $10,845.79 $10,604.72
08/31/90 $10,019.15 $10,689.61 $10,377.78
09/30/90 $10,076.49 $10,691.75 $10,392.31
10/31/90 $10,209.86 $10,926.97 $10,543.00
11/30/90 $10,373.51 $11,149.88 $10,791.81
12/31/90 $10,383.18 $11,176.64 $10,838.22
01/31/91 $10,530.15 $11,361.05 $10,971.53
02/28/91 $10,672.41 $11,458.76 $11,035.16
03/31/91 $10,620.53 $11,453.03 $11,058.34
04/30/91 $10,748.45 $11,611.08 $11,222.00
05/31/91 $10,857.29 $11,698.16 $11,323.00
06/30/91 $10,832.77 $11,684.13 $11,290.16
07/31/91 $10,942.84 $11,806.81 $11,455.00
08/31/91 $11,042.55 $11,966.20 $11,601.62
09/30/91 $11,152.07 $12,149.28 $11,750.12
10/31/91 $11,209.77 $12,247.69 $11,857.05
11/30/91 $11,220.00 $12,268.52 $11,872.46
12/31/91 $11,360.17 $12,529.83 $12,150.28
01/31/92 $11,409.05 $12,556.15 $12,145.42
02/29/92 $11,457.28 $12,537.31 $12,164.85
03/31/92 $11,486.75 $12,518.51 $12,172.15
04/30/92 $11,586.07 $12,637.43 $12,282.91
05/31/92 $11,688.54 $12,785.29 $12,454.88
06/30/92 $11,824.12 $13,006.48 $12,681.55
07/31/92 $12,025.84 $13,433.09 $13,133.02
08/31/92 $11,982.20 $13,274.58 $12,924.20
09/30/92 $12,059.58 $13,384.76 $12,974.61
10/31/92 $11,878.71 $13,248.23 $12,738.47
11/30/92 $12,051.15 $13,490.68 $13,065.85
12/31/92 $12,193.03 $13,647.17 $13,226.56
01/31/93 $12,267.50 $13,876.44 $13,374.70
02/28/93 $12,539.74 $14,384.32 $13,900.32
03/31/93 $12,456.59 $14,174.31 $13,739.08
04/30/93 $12,560.05 $14,308.96 $13,890.21
05/31/93 $12,607.86 $14,359.04 $13,970.77
06/30/93 $12,821.71 $14,641.92 $14,211.07
07/31/93 $12,838.29 $14,678.52 $14,211.07
08/31/93 $13,101.63 $14,982.37 $14,526.55
09/30/93 $13,212.25 $15,166.65 $14,697.97
10/31/93 $13,235.36 $15,190.92 $14,724.42
11/30/93 $13,047.59 $15,066.35 $14,571.29
12/31/93 $13,349.20 $15,387.26 $14,864.17
01/31/94 $13,539.60 $15,576.53 $15,030.65
02/28/94 $13,151.40 $15,149.73 $14,639.85
03/31/94 $12,615.65 $14,567.98 $13,989.84
04/30/94 $12,738.98 $14,751.54 $14,041.61
05/31/94 $12,826.95 $14,845.95 $14,167.98
06/30/94 $12,781.19 $14,782.11 $14,075.89
07/31/94 $12,964.88 $15,030.45 $14,323.62
08/31/94 $13,014.63 $15,089.07 $14,358.00
09/30/94 $12,837.69 $14,885.37 $14,122.53
10/31/94 $12,666.15 $14,668.04 $13,851.38
11/30/94 $12,425.41 $14,390.81 $13,554.96
12/31/94 $12,699.92 $14,649.85 $13,888.41
01/31/95 $13,037.83 $15,029.28 $14,300.90
02/28/95 $13,360.09 $15,454.61 $14,719.91
03/31/95 $13,443.36 $15,663.25 $14,853.86
04/30/95 $13,474.94 $15,682.04 $14,853.86
05/31/95 $13,907.59 $16,179.16 $15,315.82
06/30/95 $13,777.30 $16,078.85 $15,145.81
07/31/95 $13,895.70 $16,315.21 $15,242.75
08/31/95 $14,046.44 $16,537.10 $15,408.89
09/30/95 $14,126.38 $16,642.93 $15,499.80
10/31/95 $14,320.34 $16,834.33 $15,738.50
11/30/95 $14,656.67 $17,059.91 $16,043.83
12/31/95 $14,842.22 $17,163.97 $16,225.12
01/31/96 $14,968.11 $17,337.33 $16,304.63
02/29/96 $14,858.12 $17,122.35 $16,182.34
03/31/96 $14,664.06 $17,062.42 $15,926.66
04/30/96 $14,628.81 $17,014.64 $15,851.81
05/31/96 $14,643.16 $17,176.28 $15,859.73
06/30/96 $14,765.84 $17,341.18 $16,008.81
07/31/96 $14,956.08 $17,507.65 $16,148.09
08/31/96 $14,924.26 $17,507.65 $16,140.02
09/30/96 $15,123.43 $17,687.98 $16,370.82
10/31/96 $15,330.75 $17,910.85 $16,547.62
11/30/96 $15,584.03 $18,272.65 $16,837.21
12/31/96 $15,545.85 $18,190.42 $16,763.12
01/31/97 $15,572.44 $18,261.36 $16,763.12
02/28/97 $15,713.70 $18,433.02 $16,908.96
03/31/97 $15,483.61 $18,186.02 $16,687.45
04/30/97 $15,648.40 $18,320.59 $16,827.63
05/31/97 $15,878.29 $18,580.75 $17,069.95
06/30/97 $16,041.81 $18,785.13 $17,262.84
07/31/97 $16,540.87 $19,313.00 $17,785.90
08/31/97 $16,340.51 $19,125.66 $17,577.81
09/30/97 $16,553.76 $19,368.56 $17,795.77
10/31/97 $16,673.79 $19,471.21 $17,907.88
11/30/97 $16,808.63 $19,560.78 $18,009.96
12/31/97 $17,141.13 $19,869.84 $18,296.32
01/31/98 $17,280.02 $20,090.39 $18,470.13
02/28/98 $17,264.78 $20,088.38 $18,459.05
03/31/98 $17,289.27 $20,074.32 $18,462.74
04/30/98 $17,130.31 $19,963.91 $18,348.27
05/31/98 $17,518.81 $20,303.30 $18,647.35
06/30/98 $17,590.57 $20,378.42 $18,708.89
07/31/98 $17,614.98 $20,411.03 $18,735.08
08/31/98 $17,940.68 $20,766.18 $19,025.47
09/30/98 $18,214.23 $21,075.60 $19,251.88
10/31/98 $18,117.06 $21,084.03 $19,180.64
11/30/98 $18,238.31 $21,147.28 $19,238.19
</TABLE>
* 8/6/93 was the inception date of Class B shares of the Fund. Returns prior to
that date are for Class A shares, adjusted for Class B share expenses.
** 8/2/93 was the inception date of Class I shares of the Fund. Returns prior to
that date are for Class A shares.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE 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 RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 4.0% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 3.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
FOURTH YEAR) FOR CLASS B SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
6
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
COLORADO TAX-FREE FUND
The Colorado Tax Free Fund outperformed its benchmark, the Lipper Colorado
Municipal Bond Funds Average, for the six month period ending November 30, 1998
with a return of 3.72% versus 3.40% for the Average.
During the period, interest rates on municipal bonds declined 25 basis points in
the 10-year range and 15 basis points on long term bonds. In early October,
however, interest rates declined to historical record low levels before
rebounding. The fund began the fiscal year (June 1, 1998) positioned to benefit
from declining interest rates. During the first week of October, we felt the
market had risen to unsustainable levels and elected to sell over 7% of the
funds holdings in an effort to lock in some of the funds' profits. This was the
first shift of this magnitude made to the interest rate exposure of the fund in
a number of years. By mid-November, prices had fallen and we reinvested the cash
raised at much better prices. This shift turned out to be very beneficial to the
performance of the fund.
Our focus remains on three performance related goals: seeking to produce total
return greater than our peers, to consistently pay a high tax free dividend, and
to distribute the least amount of capital gains possible.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
----------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES* I SHARES* INDEX AVERAGE+
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 3.52% 4.92% 7.73% 8.11% 7.07%
FIVE YEAR 5.79% 5.86% 6.66% 7.01% 5.92%
SINCE INCEPTION 6.01% 6.02% 6.80% 7.29% 6.23%
INCEPTION DATE 6/1/93 6/1/93 6/1/93 5/31/93 5/31/93
VALUE NOVEMBER 30,
1998 $13,786 $13,798 $14,360 $14,728 $13,943
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
A SHARES LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
05/31/93 $9,600.00 $10,000.00 $10,000.00
06/30/93 $9,736.01 $10,197.00 $10,156.00
07/31/93 $9,721.97 $10,222.49 $10,186.47
08/31/93 $9,974.97 $10,434.10 $10,387.14
09/30/93 $10,113.77 $10,562.44 $10,514.90
10/31/93 $10,108.94 $10,579.34 $10,539.09
11/30/93 $9,985.20 $10,492.59 $10,454.77
12/31/93 $10,229.25 $10,716.08 $10,651.32
01/31/94 $10,389.09 $10,847.89 $10,790.86
02/28/94 $10,079.77 $10,550.65 $10,505.98
03/31/94 $9,667.55 $10,145.51 $10,062.63
04/30/94 $9,695.05 $10,273.34 $10,091.81
05/31/94 $9,794.04 $10,339.09 $10,192.73
06/30/94 $9,722.05 $10,294.63 $10,116.28
07/31/94 $9,884.75 $10,467.58 $10,305.45
08/31/94 $9,915.86 $10,508.41 $10,319.88
09/30/94 $9,764.48 $10,366.54 $10,158.89
10/31/94 $9,608.45 $10,215.19 $9,972.98
11/30/94 $9,432.52 $10,022.13 $9,761.56
12/31/94 $9,622.78 $10,202.52 $9,993.88
01/31/95 $9,818.25 $10,466.77 $10,290.70
02/28/95 $10,076.67 $10,762.98 $10,580.90
03/31/95 $10,165.27 $10,908.28 $10,654.96
04/30/95 $10,194.92 $10,921.37 $10,668.82
05/31/95 $10,526.07 $11,267.58 $10,997.42
06/30/95 $10,445.52 $11,197.72 $10,891.84
07/31/95 $10,563.28 $11,362.32 $10,969.17
08/31/95 $10,717.17 $11,516.85 $11,088.74
09/30/95 $10,776.14 $11,590.56 $11,151.94
10/31/95 $10,930.54 $11,723.85 $11,327.03
11/30/95 $11,119.04 $11,880.95 $11,519.59
12/31/95 $11,258.20 $11,953.42 $11,652.06
01/31/96 $11,339.51 $12,074.15 $11,721.97
02/29/96 $11,253.40 $11,924.43 $11,652.82
03/31/96 $11,115.53 $11,882.70 $11,487.35
04/30/96 $11,055.11 $11,849.43 $11,451.73
05/31/96 $11,089.32 $11,962.00 $11,467.77
06/30/96 $11,226.98 $12,076.83 $11,567.54
07/31/96 $11,358.95 $12,192.77 $11,663.55
08/31/96 $11,337.58 $12,192.77 $11,669.38
09/30/96 $11,522.68 $12,318.35 $11,811.75
10/31/96 $11,656.49 $12,473.57 $11,936.95
11/30/96 $11,812.38 $12,725.53 $12,126.75
12/31/96 $11,807.52 $12,668.27 $12,094.00
01/31/97 $11,873.29 $12,717.67 $12,108.52
02/28/97 $11,955.27 $12,837.22 $12,209.02
03/31/97 $11,794.03 $12,665.20 $12,067.39
04/30/97 $11,904.08 $12,758.92 $12,163.93
05/31/97 $12,087.06 $12,940.10 $12,323.28
06/30/97 $12,209.04 $13,082.44 $12,478.55
07/31/97 $12,606.60 $13,450.06 $12,847.92
08/31/97 $12,409.78 $13,319.59 $12,715.59
09/30/97 $12,581.57 $13,488.75 $12,865.63
10/31/97 $12,707.68 $13,560.24 $12,960.84
11/30/97 $12,784.73 $13,622.62 $13,023.05
12/31/97 $13,022.68 $13,837.86 $13,228.81
01/31/98 $13,139.20 $13,991.46 $13,363.75
02/28/98 $13,139.64 $13,990.06 $13,351.72
03/31/98 $13,144.90 $13,980.26 $13,357.06
04/30/98 $13,025.87 $13,903.37 $13,275.58
05/31/98 $13,290.86 $14,139.73 $13,485.33
06/30/98 $13,343.64 $14,192.05 $13,531.18
07/31/98 $13,361.38 $14,214.75 $13,558.25
08/31/98 $13,591.40 $14,462.09 $13,758.91
09/30/98 $13,795.16 $14,677.58 $13,922.64
10/31/98 $13,683.54 $14,683.45 $13,889.23
11/30/98 $13,785.55 $14,727.50 $13,943.39
</TABLE>
* 8/2/93 was the inception date of Class B shares of the Fund. Returns prior to
that date are for Class A shares, adjusted for Class B share expenses.
** 8/23/93 was the inception date of Class I shares of the Fund. Returns prior
to that date are for Class A shares.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE 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 RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 4.0% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 3.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
FOURTH YEAR) FOR CLASS B SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
7
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
MINNESOTA TAX-FREE FUND
For the six-month period ending November 30, 1998, the Fund achieved a total
return of 3.56% compared to 3.26% total return for the Lipper Minnesota
Municipal Debt average.
We continued to have the expectation that interest rates would decline modestly
from the levels that existed at the end of May 1998. Our management strategy for
the Fund, therefore, emphasized municipal issues that would perform well in a
declining interest rate environment. Indeed, yields for high quality long
municipals declined approximately fifteen basis points for the period as a
whole. Except for the more significant yield declines that occurred during
August and September, most of the period was characterized by rate stability.
Return for the period reflects the type of market that evolved: six months of
market income plus a modest amount of price appreciation per share.
We have three primary concerns in managing the Fund: credit quality, duration
and convexity. We accept a prudent level of credit risk as a way to enhance
portfolio yield. With our interest rate outlook in mind, we manage the
portfolio's duration and convexity seeking to produce optimum price performance.
Duration is a measure of the price volatility of the portfolio. Convexity
estimates upside price performance compared to downside price risk given an
equal change in interest rates in either direction. Simply put, we seek to
minimize holdings with downside price risk that exceeds the upside price
potential.
In early October, when yields on high-grade long municipals briefly touched
4.65%, we swapped out of some long holdings, increasing our cash position and
adding some short duration issues. At that time we pared the portfolio's
duration by about one year.
Our outlook for interest rates remains fairly positive with inflation as non-
threatening as it is. However, the probability of declining rates is not as
great as earlier in the year because the U.S. economy has remained quite strong
even in the face of the global economic turmoil.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE OF ALL OTHER
CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
---------------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES* I SHARES** INDEX AVERAGE+
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 3.40% 4.91% 7.71% 8.11% 6.64%
FIVE YEAR 5.34% 5.41% 6.19% 7.01% 5.33%
TEN YEAR 6.87% 6.49% 7.31% 8.62% 7.21%
VALUE NOVEMBER 30,
1998 $19,449 $18,768 $20,259 $22,866 $20,069
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
A SHARES LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
07/31/89 $9,600.00 $10,000.00 $10,000.00
08/31/89 $9,495.72 $9,941.00 $9,897.00
09/30/89 $9,453.29 $9,894.28 $9,867.31
10/31/89 $9,596.87 $10,007.07 $9,985.72
11/30/89 $9,759.18 $10,174.19 $10,143.49
12/31/89 $9,806.49 $10,278.98 $10,212.47
01/31/90 $9,756.20 $10,248.15 $10,104.21
02/28/90 $9,828.76 $10,319.88 $10,204.25
03/31/90 $9,837.45 $10,303.37 $10,201.19
04/30/90 $9,724.20 $10,372.41 $10,068.57
05/31/90 $9,945.86 $10,597.49 $10,332.37
06/30/90 $10,044.57 $10,697.10 $10,431.56
07/31/90 $10,195.97 $10,845.79 $10,604.72
08/31/90 $10,019.15 $10,689.61 $10,377.78
09/30/90 $10,076.49 $10,691.75 $10,392.31
10/31/90 $10,209.86 $10,926.97 $10,543.00
11/30/90 $10,373.51 $11,149.88 $10,791.81
12/31/90 $10,383.18 $11,176.64 $10,838.22
01/31/91 $10,530.15 $11,361.05 $10,971.53
02/28/91 $10,672.41 $11,458.76 $11,035.16
03/31/91 $10,620.53 $11,453.03 $11,058.34
04/30/91 $10,748.45 $11,611.08 $11,222.00
05/31/91 $10,857.29 $11,698.16 $11,323.00
06/30/91 $10,832.77 $11,684.13 $11,290.16
07/31/91 $10,942.84 $11,806.81 $11,455.00
08/31/91 $11,042.55 $11,966.20 $11,601.62
09/30/91 $11,152.07 $12,149.28 $11,750.12
10/31/91 $11,209.77 $12,247.69 $11,857.05
11/30/91 $11,220.00 $12,268.52 $11,872.46
12/31/91 $11,360.17 $12,529.83 $12,150.28
01/31/92 $11,409.05 $12,556.15 $12,145.42
02/29/92 $11,457.28 $12,537.31 $12,164.85
03/31/92 $11,486.75 $12,518.51 $12,172.15
04/30/92 $11,586.07 $12,637.43 $12,282.91
05/31/92 $11,688.54 $12,785.29 $12,454.88
06/30/92 $11,824.12 $13,006.48 $12,681.55
07/31/92 $12,025.84 $13,433.09 $13,133.02
08/31/92 $11,982.20 $13,274.58 $12,924.20
09/30/92 $12,059.58 $13,384.76 $12,974.61
10/31/92 $11,878.71 $13,248.23 $12,738.47
11/30/92 $12,051.15 $13,490.68 $13,065.85
12/31/92 $12,193.03 $13,647.17 $13,226.56
01/31/93 $12,267.50 $13,876.44 $13,374.70
02/28/93 $12,539.74 $14,384.32 $13,900.32
03/31/93 $12,456.59 $14,174.31 $13,739.08
04/30/93 $12,560.05 $14,308.96 $13,890.21
05/31/93 $12,607.86 $14,359.04 $13,970.77
06/30/93 $12,821.71 $14,641.92 $14,211.07
07/31/93 $12,838.29 $14,678.52 $14,211.07
08/31/93 $13,101.63 $14,982.37 $14,526.55
09/30/93 $13,212.25 $15,166.65 $14,697.97
10/31/93 $13,235.36 $15,190.92 $14,724.42
11/30/93 $13,047.59 $15,066.35 $14,571.29
12/31/93 $13,349.20 $15,387.26 $14,864.17
01/31/94 $13,539.60 $15,576.53 $15,030.65
02/28/94 $13,151.40 $15,149.73 $14,639.85
03/31/94 $12,615.65 $14,567.98 $13,989.84
04/30/94 $12,738.98 $14,751.54 $14,041.61
05/31/94 $12,826.95 $14,845.95 $14,167.98
06/30/94 $12,781.19 $14,782.11 $14,075.89
07/31/94 $12,964.88 $15,030.45 $14,323.62
08/31/94 $13,014.63 $15,089.07 $14,358.00
09/30/94 $12,837.69 $14,885.37 $14,122.53
10/31/94 $12,666.15 $14,668.04 $13,851.38
11/30/94 $12,425.41 $14,390.81 $13,554.96
12/31/94 $12,699.92 $14,649.85 $13,888.41
01/31/95 $13,037.83 $15,029.28 $14,300.90
02/28/95 $13,360.09 $15,454.61 $14,719.91
03/31/95 $13,443.36 $15,663.25 $14,853.86
04/30/95 $13,474.94 $15,682.04 $14,853.86
05/31/95 $13,907.59 $16,179.16 $15,315.82
06/30/95 $13,777.30 $16,078.85 $15,145.81
07/31/95 $13,895.70 $16,315.21 $15,242.75
08/31/95 $14,046.44 $16,537.10 $15,408.89
09/30/95 $14,126.38 $16,642.93 $15,499.80
10/31/95 $14,320.34 $16,834.33 $15,738.50
11/30/95 $14,656.67 $17,059.91 $16,043.83
12/31/95 $14,842.22 $17,163.97 $16,225.12
01/31/96 $14,968.11 $17,337.33 $16,304.63
02/29/96 $14,858.12 $17,122.35 $16,182.34
03/31/96 $14,664.06 $17,062.42 $15,926.66
04/30/96 $14,628.81 $17,014.64 $15,851.81
05/31/96 $14,643.16 $17,176.28 $15,859.73
06/30/96 $14,765.84 $17,341.18 $16,008.81
07/31/96 $14,956.08 $17,507.65 $16,148.09
08/31/96 $14,924.26 $17,507.65 $16,140.02
09/30/96 $15,123.43 $17,687.98 $16,370.82
10/31/96 $15,330.75 $17,910.85 $16,547.62
11/30/96 $15,584.03 $18,272.65 $16,837.21
12/31/96 $15,545.85 $18,190.42 $16,763.12
01/31/97 $15,572.44 $18,261.36 $16,763.12
02/28/97 $15,713.70 $18,433.02 $16,908.96
03/31/97 $15,483.61 $18,186.02 $16,687.45
04/30/97 $15,648.40 $18,320.59 $16,827.63
05/31/97 $15,878.29 $18,580.75 $17,069.95
06/30/97 $16,041.81 $18,785.13 $17,262.84
07/31/97 $16,540.87 $19,313.00 $17,785.90
08/31/97 $16,340.51 $19,125.66 $17,577.81
09/30/97 $16,553.76 $19,368.56 $17,795.77
10/31/97 $16,673.79 $19,471.21 $17,907.88
11/30/97 $16,808.63 $19,560.78 $18,009.96
12/31/97 $17,141.13 $19,869.84 $18,296.32
01/31/98 $17,280.02 $20,090.39 $18,470.13
02/28/98 $17,264.78 $20,088.38 $18,459.05
03/31/98 $17,289.27 $20,074.32 $18,462.74
04/30/98 $17,130.31 $19,963.91 $18,348.27
05/31/98 $17,518.81 $20,303.30 $18,647.35
06/30/98 $17,590.57 $20,378.42 $18,708.89
07/31/98 $17,614.98 $20,411.03 $18,735.08
08/31/98 $17,940.68 $20,766.18 $19,025.47
09/30/98 $18,214.23 $21,075.60 $19,251.88
10/31/98 $18,117.06 $21,084.03 $19,180.64
11/30/98 $18,238.31 $21,147.28 $19,238.19
</TABLE>
* 8/6/93 was the inception date of Class B shares of the Fund. Returns prior to
that date are for Class A shares, adjusted for Class B share expenses.
** 8/2/93 was the inception date of Class I shares of the Fund. Returns prior to
that date are for Class A shares.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE 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 RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 4.0% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 3.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
FOURTH YEAR) FOR CLASS B SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
8
<PAGE>
NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
GROWTH BALANCED FUND
The Growth Balanced Fund performed extremely well during the past two fiscal
quarters. For the six-month period ending November 30, 1998, the Fund returned
7.09%, surpassing the fund composite benchmark, which returned 1.86%. The Fund
benefited from a tactical asset allocation shift implemented on October 1, 1998,
increasing the stock exposure of the fund to 80% of assets (from its base
allocation of 65% stocks and 35% bonds). This shift notably increased results as
stocks significantly outperformed bonds in the final two months of the period.
The past six months have brought increased volatility to both domestic and
international markets. Investor sentiment temporarily turned gloomy, as
corporate earnings became more disappointing, economic turmoil in Russia was
again front-page news, and hedge fund bailouts drew attention. In addition, the
disparity which existed between the returns of large and small capitalization
stocks in the U.S. continued to be evident, with the S&P 500 Index (large cap
stocks) generating a 7.47% return, while the Russell 2000 Index (small cap
stocks) lost 12.35% during the same period. In a similar fashion to the domestic
market, the 0.34% return of the MSCI EAFE Index (international stocks) doesn't
convey the volatility experienced abroad. International stocks were again
hammered in August and September, declining over 15%, only to regain lost ground
in October and November.
The domestic bond market extended its record of strong performance, although
with increased volatility, as interest rates continued to decline across the
entire yield curve. Even with world uncertainty looming, the domestic economy
continues to show signs of steady, non-inflationary growth. U.S. Treasuries were
still the "safe haven" as investors surveyed the damage to the markets of Russia
and Japan in the first three months of the period. The Lehman Brothers Aggregate
Bond Index, a broad measure of bond returns in the U.S., returned 5.2% during
the past six months, well above historic levels.
The Fund's performance was reflective of its underlying asset allocation. The
Fund's equity allocation, which is comprised of large cap growth and value
stocks, small company growth and value issues, and non-U.S. stocks, and normally
makes up 65% of the Fund's assets, returned 2.74% over the period. The
diversified bond style, comprising 35% of the Fund, gained 5.81%; this portfolio
consists of high quality U.S. government and agency bonds, corporate issues, as
well as asset-backed and mortgage-backed instruments.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES.
- --------------------------------------------------------------------------------
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"), FUND COMPOSITE BENCHMARK
("BENCHMARK")
AND 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 two broad-based securities market indices and two peer based
averages. The Fund's total return includes operating expenses and sales charges
(if applicable) that reduce returns, while the total return of the Indices does
not. The Lipper Average does not include sales charges but does include
management fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
----------------------------------------------------------------------------------------------------
LEHMAN LIPPER
A SHARES* B SHARES** C SHARES** I SHARES*** S&P INDEX INDEX BENCHMARK+ AVERAGE++
----------- ----------- ----------- ----------- --------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ONE YEAR 11.86% 14.42% 17.52% 18.39% 23.67% 8.85% 11.59% 11.18%
FIVE YEAR 13.88% 14.19% 14.33% 15.18% 22.95% 6.60% 12.06% 13.11%
SINCE INCEPTION 12.80% 12.63% 12.63% 13.47% 17.91% 8.50% 11.68% 12.21%
INCEPTION DATE 5/1/89 5/1/89 5/1/89 5/1/89 4/30/89 4/30/89 4/30/89 4/30/89
VALUE NOVEMBER 30,
1998 $ 31,762 $ 31,284 $ 31,311 $ 33,615 $ 48,565 $ 21,868 $ 28,859 $ 30,195
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
I SHARES S&P INDEX LEHMAN INDEX BENCHMARK LIPPER AVERAGE
<S> <C> <C> <C> <C> <C>
04/30/89 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
05/31/89 $10,153.68 $10,355.60 $10,198.00 $10,258.17 $10,308.00
06/30/89 $10,130.51 $10,344.77 $10,454.99 $10,291.97 $10,367.79
07/31/89 $10,812.95 $11,277.97 $10,669.32 $10,857.49 $10,886.18
08/31/89 $10,926.66 $11,497.71 $10,531.68 $10,935.49 $10,973.27
09/30/89 $10,978.66 $11,450.89 $10,581.18 $10,990.53 $10,962.29
10/31/89 $10,828.09 $11,185.34 $10,805.50 $10,820.32 $10,842.80
11/30/89 $11,009.44 $11,412.52 $10,908.15 $10,968.51 $10,987.01
12/31/89 $11,164.35 $11,686.19 $10,937.61 $11,125.77 $11,092.49
01/31/90 $10,700.02 $10,902.05 $10,867.61 $10,675.03 $10,631.04
02/28/90 $10,775.36 $11,043.50 $10,907.82 $10,741.72 $10,711.84
03/31/90 $10,978.66 $11,335.92 $10,922.00 $10,881.05 $10,853.23
04/30/90 $10,878.64 $11,053.54 $10,883.77 $10,687.95 $10,649.19
05/31/90 $11,703.43 $12,128.96 $11,123.21 $11,361.66 $11,268.97
06/30/90 $11,841.44 $12,047.19 $11,272.26 $11,423.43 $11,320.81
07/31/90 $11,796.98 $12,008.69 $11,428.95 $11,436.61 $11,318.55
08/31/90 $11,076.83 $10,924.55 $11,382.09 $10,705.36 $10,689.24
09/30/90 $10,654.33 $10,393.61 $11,469.73 $10,276.71 $10,395.28
10/31/90 $10,720.42 $10,349.68 $11,602.78 $10,286.30 $10,372.41
11/30/90 $11,135.52 $11,017.37 $11,779.14 $10,687.41 $10,838.13
12/31/90 $11,382.26 $11,324.10 $11,940.52 $10,911.32 $11,106.92
01/31/91 $11,870.62 $11,816.03 $12,061.12 $11,295.75 $11,485.67
02/28/91 $12,484.96 $12,660.03 $12,157.60 $11,867.84 $12,005.97
03/31/91 $12,730.97 $12,966.29 $12,240.28 $12,067.27 $12,224.47
04/30/91 $12,748.20 $12,996.76 $12,373.70 $12,143.08 $12,279.48
05/31/91 $13,171.09 $13,555.88 $12,449.18 $12,465.15 $12,655.24
06/30/91 $12,729.29 $12,935.29 $12,457.89 $12,090.97 $12,276.85
07/31/91 $13,221.99 $13,537.70 $12,596.17 $12,513.36 $12,686.89
08/31/91 $13,531.90 $13,857.49 $12,836.76 $12,797.35 $13,004.06
09/30/91 $13,543.48 $13,625.51 $13,057.55 $12,867.72 $13,035.27
10/31/91 $13,792.04 $13,807.93 $13,206.41 $13,047.34 $13,199.52
11/30/91 $13,532.05 $13,253.41 $13,358.28 $12,771.28 $12,910.45
12/31/91 $14,559.39 $14,766.55 $13,684.22 $13,690.46 $13,908.43
01/31/92 $14,477.11 $14,491.36 $13,559.70 $13,649.18 $13,809.68
02/29/92 $14,512.57 $14,679.31 $13,612.58 $13,790.47 $13,958.82
03/31/92 $14,270.89 $14,394.09 $13,559.49 $13,558.56 $13,752.23
04/30/92 $14,417.84 $14,816.16 $13,678.81 $13,696.96 $13,891.13
05/31/92 $14,606.90 $14,888.61 $13,890.84 $13,889.73 $14,041.15
06/30/92 $14,416.56 $14,667.21 $14,096.42 $13,763.23 $13,909.17
07/31/92 $14,711.96 $15,266.28 $14,376.94 $14,103.76 $14,334.79
08/31/92 $14,583.44 $14,954.08 $14,520.71 $14,005.69 $14,200.04
09/30/92 $14,739.18 $15,129.87 $14,718.19 $14,143.04 $14,384.64
10/31/92 $14,761.73 $15,181.81 $14,526.85 $14,114.53 $14,396.15
11/30/92 $15,206.04 $15,697.34 $14,476.01 $14,442.35 $14,733.02
12/31/92 $15,372.05 $15,889.93 $14,665.65 $14,680.62 $14,952.54
01/31/93 $15,402.68 $16,022.66 $14,951.63 $14,891.63 $15,154.40
02/28/93 $15,351.57 $16,240.95 $15,187.86 $15,036.45 $15,281.70
03/31/93 $15,756.93 $16,583.60 $15,248.61 $15,372.81 $15,564.41
04/30/93 $15,533.42 $16,182.78 $15,370.60 $15,291.68 $15,396.31
05/31/93 $15,891.77 $16,614.40 $15,336.79 $15,569.27 $15,638.03
06/30/93 $15,911.65 $16,662.92 $15,577.57 $15,682.44 $15,816.31
07/31/93 $16,000.20 $16,595.88 $15,614.96 $15,762.18 $15,851.10
08/31/93 $16,586.59 $17,224.29 $15,863.24 $16,308.97 $16,336.15
09/30/93 $16,655.68 $17,088.32 $15,929.86 $16,360.04 $16,373.72
10/31/93 $16,857.37 $17,441.52 $15,972.87 $16,594.43 $16,537.46
11/30/93 $16,577.69 $17,276.03 $15,883.43 $16,325.73 $16,305.93
12/31/93 $16,949.33 $17,484.97 $15,956.49 $16,698.92 $16,599.44
01/31/94 $17,383.42 $18,078.84 $16,133.61 $17,159.53 $17,021.07
02/28/94 $17,060.97 $17,588.55 $15,894.83 $16,823.94 $16,678.94
03/31/94 $16,464.75 $16,822.74 $15,632.56 $16,204.92 $16,058.49
04/30/94 $16,568.74 $17,038.64 $15,526.26 $16,264.03 $16,098.63
05/31/94 $16,642.59 $17,317.55 $15,537.13 $16,312.91 $16,164.64
06/30/94 $16,289.40 $16,893.44 $15,538.68 $16,045.26 $15,878.52
07/31/94 $16,699.03 $17,447.77 $15,762.44 $16,413.03 $16,240.55
08/31/94 $17,240.06 $18,161.87 $15,811.31 $16,854.97 $16,653.06
09/30/94 $16,992.61 $17,718.54 $15,665.84 $16,583.83 $16,343.32
10/31/94 $17,134.04 $18,115.29 $15,664.43 $16,739.08 $16,431.57
11/30/94 $16,801.53 $17,456.44 $15,593.94 $16,300.54 $16,029.00
12/31/94 $16,924.72 $17,714.85 $15,648.52 $16,417.43 $16,176.46
01/31/95 $17,066.87 $18,173.87 $15,912.98 $16,562.10 $16,389.99
02/28/95 $17,464.87 $18,881.46 $16,242.38 $17,025.31 $16,889.89
03/31/95 $17,815.50 $19,437.72 $16,334.96 $17,373.08 $17,193.90
04/30/95 $18,128.22 $20,009.72 $16,535.88 $17,732.39 $17,513.71
05/31/95 $18,639.94 $20,807.88 $17,035.26 $18,279.45 $18,102.17
06/30/95 $19,075.85 $21,290.83 $17,149.40 $18,621.08 $18,455.16
07/31/95 $19,644.43 $21,996.50 $17,151.12 $19,115.26 $18,892.55
08/31/95 $19,729.72 $22,051.58 $17,307.19 $19,239.44 $19,053.14
09/30/95 $20,307.77 $22,981.69 $17,431.80 $19,682.81 $19,472.31
10/31/95 $20,137.20 $22,899.62 $17,625.30 $19,599.67 $19,421.68
11/30/95 $20,658.40 $23,903.89 $17,856.19 $20,160.00 $20,023.75
12/31/95 $20,859.32 $24,364.32 $18,043.68 $20,483.41 $20,296.07
01/31/96 $21,299.39 $25,192.59 $18,198.85 $20,838.55 $20,671.55
02/29/96 $21,465.64 $25,426.80 $17,985.93 $20,918.22 $20,752.17
03/31/96 $21,622.11 $25,671.66 $17,894.20 $21,045.13 $20,835.18
04/30/96 $21,993.72 $26,049.76 $17,831.57 $21,369.22 $21,049.78
05/31/96 $22,326.22 $26,720.51 $17,817.30 $21,643.18 $21,319.22
06/30/96 $22,336.00 $26,822.34 $18,006.17 $21,664.67 $21,340.54
07/31/96 $21,622.11 $25,637.87 $18,060.18 $21,000.76 $20,755.81
08/31/96 $21,915.49 $26,179.44 $18,074.63 $21,377.63 $21,114.88
09/30/96 $22,785.85 $27,651.62 $18,325.87 $22,147.46 $21,889.80
10/31/96 $22,991.22 $28,414.00 $18,650.24 $22,475.34 $22,312.27
11/30/96 $24,037.61 $30,559.85 $18,896.42 $23,451.69 $23,311.86
12/31/96 $23,831.75 $29,954.46 $18,775.48 $23,258.56 $23,078.74
01/31/97 $24,625.09 $31,824.82 $18,848.71 $23,856.17 $23,708.79
02/28/97 $24,625.09 $32,074.64 $18,884.52 $23,880.53 $23,734.87
03/31/97 $23,852.62 $30,759.26 $18,754.22 $23,258.15 $23,084.54
04/30/97 $24,645.97 $32,593.96 $18,973.64 $23,842.28 $23,717.05
05/31/97 $25,856.87 $34,577.08 $19,131.12 $24,977.89 $24,736.89
06/30/97 $26,785.92 $36,125.33 $19,305.22 $25,761.89 $25,466.63
07/31/97 $28,309.98 $38,998.92 $19,697.11 $25,761.89 $26,892.76
08/31/97 $27,193.03 $36,815.76 $19,598.63 $25,038.52 $26,198.92
09/30/97 $28,414.37 $38,830.84 $19,825.97 $26,086.94 $27,189.24
10/31/97 $27,861.12 $37,535.44 $20,046.04 $25,494.48 $26,740.62
11/30/97 $28,393.50 $39,271.57 $20,090.14 $25,862.54 $27,157.77
12/31/97 $28,782.50 $39,945.51 $20,250.86 $26,190.09 $27,527.12
01/31/98 $29,162.83 $40,386.86 $20,516.15 $26,404.51 $27,689.53
02/28/98 $30,460.45 $43,298.07 $20,499.74 $27,565.15 $28,830.34
03/31/98 $31,366.54 $45,513.55 $20,565.33 $28,445.63 $29,634.70
04/30/98 $31,713.32 $45,971.28 $20,668.16 $28,641.19 $29,821.40
05/31/98 $31,388.92 $45,181.95 $20,819.04 $28,331.13 $29,529.15
06/30/98 $32,194.33 $47,015.79 $20,952.28 $28,771.76 $29,960.28
07/31/98 $31,802.81 $46,516.49 $21,025.61 $28,404.43 $29,519.86
08/31/98 $28,961.48 $39,799.51 $21,355.72 $25,761.23 $26,954.59
09/30/98 $30,158.42 $42,349.34 $21,891.74 $26,707.75 $28,046.25
10/31/98 $31,937.05 $45,791.03 $21,869.85 $27,817.27 $29,156.88
11/30/98 $33,615.00 $48,565.19 $21,867.67 $28,859.22 $30,194.86
</TABLE>
* 10/14/98 WAS THE INCEPTION DATE OF CLASS A SHARES OF THE FUND. RETURNS PRIOR
TO THAT DATE ARE FOR CLASS I SHARES, AND HAVE NOT BEEN ADJUSTED FOR CLASS A
SHARE EXPENSES. IF SUCH RETURNS HAD BEEN ADJUSTED FOR CLASS A SHARE EXPENSES,
RETURNS WOULD HAVE BEEN LOWER.
** 10/1/98 WAS THE INCEPTION DATE OF CLASS B AND C SHARES OF THE FUND. RETURNS
PRIOR TO THAT DATE ARE FOR CLASS I SHARES, ADJUSTED FOR CLASS B AND CLASS C
SHARE EXPENSES, RESPECTIVELY. PERFORMANCE SHOWN FOR CLASS B AND CLASS C SHARES
FOR THE PERIOD PRIOR TO NOVEMBER 11, 1994 REFLECTS PERFORMANCE OF THE SHARES OF
THE PREDECESSOR COLLECTIVE INVESTMENT FUND ADJUSTED TO REFLECT CLASS B AND CLASS
C SHARE EXPENSES (BEFORE WAIVERS AND REIMBURSEMENTS), RESPECTIVELY.
*** PRIOR TO NOVEMBER 11, 1994, NORWEST INVESTMENT MANAGEMENT MANAGED A
COLLECTIVE INVESTMENT FUND WITH INVESTMENT OBJECTIVES AND POLICES THAT WERE, IN
ALL MATERIAL RESPECTS, EQUIVALENT TO THE FUND. THE PERFORMANCE OF THE FUND
INCLUDES THE PERFORMANCE OF THE PREDECESSOR COLLECTIVE INVESTMENT FUND FOR THE
PERIODS BEFORE IT BECAME A MUTUAL FUND ON NOVEMBER 11, 1994. THE COLLECTIVE
INVESTMENT 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, INCLUDING
ANY APPLICABLE SALES LOAD (WITHOUT GIVING EFFECT TO ANY FEE WAIVERS OR EXPENSE
REIMBURSEMENTS). THE COLLECTIVE INVESTMENT FUND WAS NOT REGISTERED UNDER THE
INVESTMENT COMPANY ACT OF 1940 (THE "1940 ACT"), NOR SUBJECT TO CERTAIN
INVESTMENT LIMITATIONS, DIVERSIFICATION REQUIREMENTS AND OTHER RESTRICTIONS
IMPOSED BY THE 1940 ACT AND THE INTERNAL REVENUE CODE, WHICH, IF APPLICABLE, MAY
HAVE ADVERSELY AFFECTED THE PERFORMANCE RESULTS.
+ COMPOSITE BENCHMARK REPRESENTS THE APPROPRIATE BASE ALLOCATION PERCENTAGES
APPLIED TO THE LIPPER UNIVERSE AVERAGES OF THE UNDERLYING COMPONENT PORTFOLIOS.
++ SOURCE: LIPPER ANALYTICAL SERVICES, INC. IS AN INDEPENDENT MUTUAL FUND RATING
SERVICE THAT RANKS FUNDS IN VARIOUS FUND CATEGORIES BY MAKING COMPARATIVE
CALCULATIONS USING TOTAL RETURNS. 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 THE OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES IN SALES
CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT CLASSES.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.5% SALES
CHARGE FOR CLASS A SHARES, THE MAXIMUM 4.0% DEFERRED SALES
CHARGE (DECLINING TO ZERO AFTER THE SIXTH YEAR) FOR CLASS B
SHARES AND THE MAXIMUM 1.0% DEFERRED SALES CHARGE (DECLINING TO
ZERO AFTER ONE YEAR) FOR CLASS C SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND
EXPENSES NOT BEEN VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDICES ARE
UNMANAGED AND ARE NOT AVAILABLE FOR INVESTMENT.
[LOGO]
9
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
INCOME EQUITY FUND
The Income Equity Fund outperformed its benchmark, the Lipper Equity Income Fund
Average, for the six month period ending November 30, 1998 with a return of
2.11% versus -0.16% for the Average.
The strategy utilized in managing the Income Equity Fund remained consistent
with the Fund's overall objectives. The Fund's style is to focus on quality
large capitalization companies with an above average dividend yield and better
future growth prospects than the market in general, while selling at a better
valuation. The results of this disciplined process were very competitive returns
with less volatility (risk) than market benchmarks. We have also increased the
Fund's dividend yield relative to that of the S&P 500 Index.
The sectors that had the most positive effect on performance were Consumer
Staples and Capital Goods. The healthcare stocks, especially the drug companies
have been in favor because they have historically produced consistent revenue
and earnings gains, even in economic slowdowns, which many economists expect to
continue in 1999. The Capital Goods sector was led by United Technologies,
General Electric, Emerson Electric and AMP. AMP, recently added to the Fund, is
the target of a take-over by Tyco International at up to $55 per share.
The economic downturn internationally impacted two sectors more severely than
others, namely Consumer Cyclicals (retailers in particular) and Financials.
Retailers have had little or no pricing power due to low cost imports. Financial
companies, especially those doing business internationally have been adversely
impacted by the economic uncertainties worldwide. Energy stocks also continue to
be under pressure as oil prices remain at the lowest levels in the last twenty
years.
The strategy going forward will be to take advantage of the decline in those
sectors that have been impacted by short-term cyclical pressures including
currency risk, price competition, excess inventories, etc. We will concentrate
on those companies with management teams that have shown strong leadership in
dealing with short-term problems. Growth of earnings and dividends, as well as
overall higher dividend yield at a reasonable price continues to be the focus.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE OF ALL OTHER
CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
-------------------------------------------------------------
LIPPER
A SHARES* B SHARES** C SHARES** I SHARES*** S&P INDEX AVERAGE+
----------- ----------- ----------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
ONE YEAR 10.00% 12.50% 15.41% 16.38% 23.67% 10.67%
FIVE YEAR 19.37% 19.73% 19.81% 20.73% 22.95% 16.37%
SINCE INCEPTION 16.30% 16.12% 16.11% 16.98% 18.36% 14.03%
INCEPTION DATE 3/31/89 3/31/89 3/31/89 3/31/89 3/31/89 3/31/89
VALUE NOVEMBER 30,
1998 $ 43,120 $ 42,461 $ 42,435 $ 45,620 $ 51,084 $ 35,599
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
I SHARES S&P INDEX LIPPER AVERAGE
<S> <C> <C> <C>
03/31/89 $10,000.00 $10,000.00 $10,000.00
04/30/89 $10,507.80 $10,518.66 $10,359.00
05/31/89 $10,971.52 $10,892.70 $10,697.74
06/30/89 $10,855.26 $10,881.31 $10,709.51
07/31/89 $11,714.59 $11,862.91 $11,347.79
08/31/89 $11,893.29 $12,094.05 $11,535.03
09/30/89 $11,768.21 $12,044.80 $11,509.65
10/31/89 $11,607.43 $11,765.48 $11,187.38
11/30/89 $11,845.70 $12,004.44 $11,319.40
12/31/89 $12,090.64 $12,292.31 $11,476.74
01/31/90 $11,356.54 $11,467.49 $10,870.76
02/28/90 $11,406.10 $11,616.28 $10,989.26
03/31/90 $11,750.92 $11,923.87 $11,102.44
04/30/90 $11,568.19 $11,626.85 $10,776.03
05/31/90 $12,616.31 $12,758.04 $11,459.23
06/30/90 $12,705.83 $12,672.03 $11,388.19
07/31/90 $12,751.23 $12,631.53 $11,276.58
08/31/90 $11,768.93 $11,491.16 $10,440.99
09/30/90 $11,341.84 $10,932.69 $9,945.04
10/31/90 $11,346.65 $10,886.48 $9,785.92
11/30/90 $11,917.72 $11,588.80 $10,335.89
12/31/90 $12,248.38 $11,911.44 $10,557.08
01/31/91 $12,742.07 $12,428.88 $10,955.08
02/28/91 $13,665.22 $13,316.65 $11,641.96
03/31/91 $13,980.38 $13,638.80 $11,881.79
04/30/91 $14,023.75 $13,670.85 $11,951.89
05/31/91 $14,583.81 $14,258.97 $12,435.94
06/30/91 $13,907.78 $13,606.19 $11,987.00
07/31/91 $14,385.65 $14,239.85 $12,461.69
08/31/91 $14,788.64 $14,576.22 $12,760.77
09/30/91 $14,595.56 $14,332.21 $12,744.18
10/31/91 $14,740.70 $14,524.09 $12,918.77
11/30/91 $14,220.15 $13,940.81 $12,461.45
12/31/91 $15,770.93 $15,532.43 $13,465.84
01/31/92 $15,345.39 $15,242.97 $13,446.99
02/29/92 $15,456.42 $15,440.67 $13,672.90
03/31/92 $15,388.25 $15,140.66 $13,500.62
04/30/92 $15,885.65 $15,584.61 $13,842.19
05/31/92 $15,888.85 $15,660.82 $13,948.77
06/30/92 $15,643.02 $15,427.94 $13,810.68
07/31/92 $16,402.23 $16,058.08 $14,276.10
08/31/92 $16,028.37 $15,729.69 $14,044.83
09/30/92 $16,163.38 $15,914.60 $14,183.87
10/31/92 $16,077.65 $15,969.23 $14,188.12
11/30/92 $16,537.25 $16,511.50 $14,583.97
12/31/92 $16,639.60 $16,714.08 $14,852.32
01/31/93 $16,508.93 $16,853.69 $15,064.71
02/28/93 $16,785.07 $17,083.30 $15,338.88
03/31/93 $17,328.67 $17,443.73 $15,797.52
04/30/93 $17,083.50 $17,022.11 $15,634.80
05/31/93 $17,577.37 $17,476.13 $15,863.07
06/30/93 $17,454.95 $17,527.16 $15,996.32
07/31/93 $17,427.44 $17,456.65 $16,103.50
08/31/93 $18,122.22 $18,117.64 $16,691.27
09/30/93 $17,940.00 $17,974.62 $16,714.64
10/31/93 $18,034.37 $18,346.14 $16,938.62
11/30/93 $17,785.86 $18,172.07 $16,677.76
12/31/93 $17,909.43 $18,391.84 $16,956.28
01/31/94 $18,394.59 $19,016.52 $17,454.80
02/28/94 $17,844.13 $18,500.79 $17,035.88
03/31/94 $17,097.89 $17,695.27 $16,339.11
04/30/94 $17,340.65 $17,922.37 $16,513.94
05/31/94 $17,786.58 $18,215.74 $16,677.43
06/30/94 $17,363.77 $17,769.64 $16,405.59
07/31/94 $17,849.13 $18,352.71 $16,827.21
08/31/94 $19,010.46 $19,103.85 $17,362.32
09/30/94 $18,697.86 $18,637.53 $17,060.21
10/31/94 $19,064.97 $19,054.86 $17,164.28
11/30/94 $18,511.19 $18,361.83 $16,522.34
12/31/94 $18,741.21 $18,633.64 $16,649.56
01/31/95 $19,291.24 $19,116.48 $16,972.56
02/28/95 $20,121.30 $19,860.76 $17,529.26
03/31/95 $20,661.33 $20,445.88 $17,946.46
04/30/95 $21,291.37 $21,047.54 $18,357.43
05/31/95 $22,101.42 $21,887.11 $18,917.33
06/30/95 $22,251.43 $22,395.10 $19,146.23
07/31/95 $22,821.47 $23,137.37 $19,661.26
08/31/95 $22,931.48 $23,195.30 $19,863.78
09/30/95 $24,131.55 $24,173.66 $20,517.29
10/31/95 $24,021.55 $24,087.33 $20,316.22
11/30/95 $25,331.63 $25,143.68 $21,202.01
12/31/95 $25,943.04 $25,628.00 $21,719.34
01/31/96 $26,859.03 $26,499.23 $22,244.95
02/29/96 $27,011.70 $26,745.59 $22,449.60
03/31/96 $27,327.21 $27,003.15 $22,750.43
04/30/96 $27,720.60 $27,400.85 $23,016.61
05/31/96 $28,379.63 $28,106.40 $23,373.36
06/30/96 $28,678.25 $28,213.51 $23,408.42
07/31/96 $27,541.87 $26,967.60 $22,586.79
08/31/96 $27,913.78 $27,537.27 $23,180.82
09/30/96 $29,144.51 $29,085.80 $24,070.96
10/31/96 $29,694.99 $29,887.72 $24,617.38
11/30/96 $31,793.06 $32,144.87 $26,013.18
12/31/96 $31,195.40 $31,508.08 $25,896.12
01/31/97 $32,727.04 $33,475.45 $26,732.57
02/28/97 $33,206.32 $33,738.23 $27,085.44
03/31/97 $32,160.80 $32,354.62 $26,259.33
04/30/97 $33,197.91 $34,284.48 $27,020.85
05/31/97 $34,737.86 $36,370.45 $28,582.66
06/30/97 $36,214.04 $37,999.01 $29,614.49
07/31/97 $38,612.18 $41,021.64 $31,518.70
08/31/97 $36,741.76 $38,725.25 $30,629.87
09/30/97 $38,612.52 $40,844.84 $32,158.30
10/31/97 $37,415.23 $39,482.25 $31,199.99
11/30/97 $39,200.47 $41,308.43 $32,167.19
12/31/97 $39,941.88 $42,017.32 $32,919.90
01/31/98 $40,006.75 $42,481.57 $32,877.10
02/28/98 $42,688.29 $45,543.77 $34,708.36
03/31/98 $44,936.29 $47,874.15 $36,249.41
04/30/98 $45,337.70 $48,355.62 $36,253.03
05/31/98 $44,675.92 $47,525.36 $35,654.86
06/30/98 $45,386.11 $49,454.31 $35,861.66
07/31/98 $44,102.11 $48,929.11 $34,843.19
08/31/98 $38,552.62 $41,863.75 $30,543.54
09/30/98 $40,689.42 $44,545.83 $32,214.27
10/31/98 $43,571.61 $48,166.03 $34,137.46
11/30/98 $45,619.85 $51,084.07 $35,598.54
</TABLE>
* 5/2/96 was the inception date of Class A shares of the Fund. Returns prior to
that date are for Class I shares.
** 5/2/96 and 10/1/98 were the inception dates of Class B and C shares,
respectively, of the Fund. Returns prior to May 2, 1996 for Class B shares and
prior to October 1, 1998 for Class C shares are for Class I shares, adjusted for
Class B and Class C share expenses, respectively. Performance shown for Class B
and Class C shares for the period prior to November 11, 1994 reflects
performance of the shares of the predecessor collective investment fund adjusted
to reflect Class B and Class C share expenses (before waivers and
reimbursements), respectively.
** Prior to November 11, 1994, Norwest Investment Management managed a
collective investment fund with investment objectives and polices that were, in
all material respects, equivalent to the Fund. The performance of the Fund
includes the performance of the predecessor collective investment fund for the
periods before it became a mutual fund on November 11, 1994. The collective
investment 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, including
any applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 (the "1940 Act"), nor subject to certain
investment limitations, diversification requirements and other restrictions
imposed by the 1940 Act and the Internal Revenue Code, which, if applicable, may
have adversely affected the performance results.
+ Source: Lipper Analytical Services, Inc. is an independent
mutual fund rating service that ranks funds in various fund
categories by making comparative calculations using total
returns. 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
THE OTHER CLASSES). PERFORMANCE OF THE OTHER CLASSES WILL BE
LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES IN SALES
CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE
DIFFERENT CLASSES.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.5% SALES CHARGE FOR CLASS A
SHARES, THE MAXIMUM 4.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES AND THE MAXIMUM 1.0% DEFERRED SALES CHARGE
(DECLINING TO ZERO AFTER ONE YEAR) FOR CLASS C SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
10
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
VALUGROWTH STOCK FUND
For the six months ending November 30, 1998, the ValuGrowth Stock Fund declined
2.43% and underperformed its peer group, the Lipper Growth Fund Average, which
returned 1.79%. This was in spite of outperforming the Average in the final
three months of that period, 21.00% versus 20.33%. The fund suffered from its
investment in smaller cap stocks early in 1998. Small cap stocks on average
posted losses for the six months, and the smaller caps selected for investment
by the Fund performed in line with small cap indices. These investments were
financed through the sale of large cap stocks, some of which went on to
outperform, so the Fund suffered both on the buy side and, in terms of lost
opportunity, on the sell side.
The Fund has begun a shift away from smaller cap issues and toward a greater
emphasis on firms that have sufficient product strength to be recognized as
dominant forces in their industries. Product strength arises from strong brands,
technological leadership, and focused, entrepreneurial management. Holdings in
the Fund that best exemplify these characteristics are EMC Corp, Cisco Systems,
and Merck.
We believe that EMC and Cisco will continue to benefit as information solutions,
data management, and the Internet grow in importance into the foreseeable
future. Merck should continue to benefit from an aging population and greater
needs for wellness management. When they are at good valuations, EMC, Cisco, and
Merck are the kinds of companies that are targeted for investment in the Fund
going forward.
Charles J. Meyer, CFA, became the Fund's manager in December 1998. Mr. Meyer
joined Norwest Investment Management, Inc., as an institutional portfolio
manager in March 1998. Prior to Norwest he managed the Montana Board of
Investments' $2 billion stock fund, which was highly rated among U.S. public
funds. Prior to that he was portfolio manager for Columbia Partners, Inc., and
pension investments manager for The Standard Oil Company, both in Cleveland,
Ohio.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
VALUGROWTH 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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
-------------------------------------------------------------
LIPPER
A SHARES B SHARES* I SHARES** S&P INDEX AVERAGE+
----------- ----------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 2.59% 4.74% 8.62% 23.67% 14.02%
FIVE YEAR 13.23% 13.57% 14.55% 22.95% 17.64%
TEN YEAR 13.83% 13.61% 14.45% 18.72% 16.34%
VALUE NOVEMBER 30,
1998 $ 36,550 $ 35,834 $ 38,601 $ 55,651 $ 45,468
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
A SHARES S&P INDEX LIPPER AVERAGE
<S> <C> <C> <C>
11/30/88 $9,450.00 $10,000.00 $10,000.00
12/31/88 $9,647.86 $10,174.32 $10,260.00
01/31/89 $10,138.75 $10,917.28 $10,912.54
02/28/89 $9,959.38 $10,645.88 $10,771.76
03/31/89 $10,110.42 $10,893.95 $11,023.82
04/30/89 $10,650.53 $11,458.97 $11,580.53
05/31/89 $11,162.21 $11,866.45 $12,068.07
06/30/89 $10,887.42 $11,854.04 $11,919.63
07/31/89 $11,896.22 $12,923.39 $12,793.34
08/31/89 $12,058.01 $13,175.19 $13,117.01
09/30/89 $12,134.14 $13,121.54 $13,141.93
10/31/89 $11,800.00 $12,817.25 $12,725.33
11/30/89 $12,095.96 $13,077.57 $12,909.85
12/31/89 $12,239.16 $13,391.17 $13,050.57
01/31/90 $11,573.56 $12,492.63 $12,206.20
02/28/90 $11,772.25 $12,654.72 $12,412.48
03/31/90 $12,308.70 $12,989.80 $12,782.37
04/30/90 $12,149.24 $12,666.23 $12,502.44
05/31/90 $13,514.66 $13,898.54 $13,678.92
06/30/90 $13,664.15 $13,804.85 $13,721.32
07/31/90 $13,393.87 $13,760.72 $13,497.67
08/31/90 $12,042.47 $12,518.41 $12,268.03
09/30/90 $11,411.82 $11,910.01 $11,567.52
10/31/90 $11,170.30 $11,859.67 $11,355.84
11/30/90 $11,743.91 $12,624.77 $12,126.90
12/31/90 $12,086.06 $12,976.26 $12,554.98
01/31/91 $12,753.02 $13,539.96 $13,373.56
02/28/91 $13,743.35 $14,507.09 $14,339.13
03/31/91 $14,066.72 $14,858.03 $14,809.46
04/30/91 $14,056.59 $14,892.95 $14,794.65
05/31/91 $14,776.14 $15,533.64 $15,447.09
06/30/91 $14,066.72 $14,822.51 $14,659.29
07/31/91 $14,921.10 $15,512.81 $15,436.23
08/31/91 $15,216.07 $15,879.26 $15,910.13
09/30/91 $14,809.22 $15,613.44 $15,758.98
10/31/91 $15,135.82 $15,822.47 $16,088.34
11/30/91 $14,778.60 $15,187.04 $15,460.90
12/31/91 $16,544.28 $16,920.94 $17,204.89
01/31/92 $16,534.05 $16,605.61 $17,247.90
02/29/92 $16,697.65 $16,820.98 $17,510.07
03/31/92 $16,288.40 $16,494.15 $17,007.53
04/30/92 $16,698.17 $16,977.79 $16,958.21
05/31/92 $16,739.17 $17,060.81 $17,093.87
06/30/92 $16,297.58 $16,807.12 $16,620.37
07/31/92 $16,975.79 $17,493.59 $17,212.06
08/31/92 $16,924.38 $17,135.84 $16,843.72
09/30/92 $17,109.57 $17,337.27 $17,128.38
10/31/92 $17,191.98 $17,396.79 $17,469.23
11/30/92 $18,098.99 $17,987.54 $18,340.95
12/31/92 $18,140.24 $18,208.23 $18,658.24
01/31/93 $17,992.42 $18,360.32 $18,889.61
02/28/93 $18,098.07 $18,610.46 $18,627.04
03/31/93 $18,690.06 $19,003.10 $19,157.91
04/30/93 $17,960.23 $18,543.80 $18,575.51
05/31/93 $18,298.90 $19,038.40 $19,273.95
06/30/93 $18,256.52 $19,093.99 $19,322.14
07/31/93 $17,948.88 $19,017.18 $19,246.78
08/31/93 $18,798.03 $19,737.26 $20,074.39
09/30/93 $18,541.41 $19,581.46 $20,259.08
10/31/93 $18,807.50 $19,986.18 $20,542.70
11/30/93 $18,548.50 $19,796.56 $20,172.93
12/31/93 $19,345.90 $20,035.97 $20,743.83
01/31/94 $19,920.56 $20,716.50 $21,413.85
02/28/94 $19,650.34 $20,154.67 $21,073.37
03/31/94 $18,763.53 $19,277.13 $20,097.68
04/30/94 $18,579.57 $19,524.53 $20,174.05
05/31/94 $18,608.81 $19,844.13 $20,276.93
06/30/94 $17,980.21 $19,358.15 $19,587.52
07/31/94 $18,680.10 $19,993.35 $20,108.55
08/31/94 $19,544.09 $20,811.63 $21,063.70
09/30/94 $19,011.77 $20,303.62 $20,671.92
10/31/94 $19,305.43 $20,758.26 $21,013.00
11/30/94 $18,483.80 $20,003.28 $20,231.32
12/31/94 $18,529.52 $20,299.39 $20,409.36
01/31/95 $18,758.55 $20,825.39 $20,568.55
02/28/95 $19,435.12 $21,636.21 $21,343.98
03/31/95 $19,850.03 $22,273.63 $21,950.15
04/30/95 $20,232.39 $22,929.08 $22,422.08
05/31/95 $20,604.03 $23,843.69 $23,110.44
06/30/95 $21,219.30 $24,397.11 $24,106.50
07/31/95 $21,767.04 $25,205.72 $25,256.38
08/31/95 $21,679.36 $25,268.84 $25,443.28
09/30/95 $22,123.47 $26,334.65 $26,191.31
10/31/95 $21,684.52 $26,240.61 $25,819.39
11/30/95 $23,069.03 $27,391.39 $26,748.89
12/31/95 $22,927.08 $27,919.01 $26,823.79
01/31/96 $23,137.11 $28,868.11 $27,430.00
02/29/96 $23,811.76 $29,136.50 $28,077.35
03/31/96 $24,210.10 $29,417.09 $28,299.16
04/30/96 $24,569.87 $29,850.34 $29,213.23
05/31/96 $25,073.67 $30,618.96 $29,981.53
06/30/96 $24,931.18 $30,735.65 $29,600.77
07/31/96 $23,845.29 $29,378.36 $27,875.04
08/31/96 $24,676.33 $29,998.95 $28,831.16
09/30/96 $26,273.04 $31,685.91 $30,509.13
10/31/96 $26,406.29 $32,559.52 $30,771.51
11/30/96 $28,149.68 $35,018.45 $32,679.34
12/31/96 $27,639.96 $34,324.73 $32,179.35
01/31/97 $29,265.84 $36,467.97 $33,791.54
02/28/97 $29,191.94 $36,754.24 $33,375.90
03/31/97 $27,872.76 $35,246.95 $31,827.26
04/30/97 $29,291.69 $37,349.33 $33,078.07
05/31/97 $30,920.38 $39,621.77 $35,476.23
06/30/97 $31,960.52 $41,395.92 $36,870.45
07/31/97 $34,913.19 $44,688.75 $39,945.44
08/31/97 $32,980.59 $42,187.08 $38,603.27
09/30/97 $34,433.83 $44,496.14 $40,738.03
10/31/97 $32,940.22 $43,011.75 $39,198.14
11/30/97 $33,666.84 $45,001.18 $39,876.26
12/31/97 $33,889.80 $45,773.44 $40,271.04
01/31/98 $34,332.15 $46,279.19 $40,484.48
02/28/98 $36,815.03 $49,615.13 $43,541.05
03/31/98 $38,130.66 $52,153.84 $45,474.28
04/30/98 $38,631.44 $52,678.35 $46,019.97
05/31/98 $37,458.19 $51,773.87 $44,666.98
06/30/98 $38,293.77 $53,875.26 $46,266.06
07/31/98 $36,273.79 $53,303.11 $45,183.43
08/31/98 $30,213.83 $45,606.14 $37,786.91
09/30/98 $31,513.18 $48,527.99 $40,027.67
10/31/98 $34,096.23 $52,471.81 $42,865.63
11/30/98 $36,550.12 $55,650.71 $45,467.57
</TABLE>
* 8/5/93 was the inception date of Class B shares of the Fund. Returns prior to
that date are for Class A shares, adjusted for Class B share expenses.
** 8/2/93 was the inception date of Class I shares of the Fund. Returns prior to
that date are for Class A shares.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE 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 RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.5% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 4.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
11
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED) (CONTINUED)
NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
For the six months ending November 30, 1998, the fund gained 2.74%, compared to
its blended benchmark, which returned 0.07%. We were very satisfied with the
performance of the five unique and complimentary equity styles that make up the
strategic asset allocation of the Fund. We employ these styles to help moderate
the Fund's annual return volatility, improve its overall performance and provide
effective diversification across equity investments.
While large company returns have still been higher than historic averages, the
past six months have brought increased volatility to the domestic stock market.
Investor sentiment temporarily turned gloomy, as corporate earnings became more
disappointing, economic turmoil in Russia was again front-page news, and hedge
fund bailouts drew attention. In fact, the market declined more than 15% in July
and August before rebounding over 22% in the final three months (as measured by
the S&P 500 Index). In addition, the disparity which existed between the returns
of large and small capitalization stocks in the U.S. continued to be evident,
with the S&P 500 Index (large cap stocks) generating a 7.47% return, while the
Russell 2000 Index (small cap stocks) lost 12.35% during the same period. In a
similar fashion to the domestic market, the 0.34% return of the MSCI EAFE Index
(international stocks) doesn't convey the volatility experienced abroad.
International stocks were again hammered in August and September, also declining
over 15%, only to regain lost ground in October and November.
The large company style of the Diversified Equity Fund, which invests in large
cap growth stocks, gained 17.15% during the past two fiscal quarters. The income
equity style, which purchases higher yielding large cap issues, returned 2.11%,
while the index style, which tracks the S&P 500 Index, returned 7.29%. The
diversified small cap style, which is comprised of a diversified portfolio of
small company growth and value stocks, fared poorly, losing 16.83%. The
international style of non-U.S. growth stocks also detracted from performance
during the period, losing 6.60%. This wide variance of returns between asset
classes is exactly why the Fund is always diversified, allowing it to better
weather the market's turbulence.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
DIVERSIFIED EQUITY FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX"),
FUND COMPOSITE BENCHMARK ("BENCHMARK") 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 securities market index and two peer based averages.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
-------------------------------------------------------------------------------------
LIPPER
A SHARES* B SHARES** C SHARES** I SHARES*** S&P INDEX BENCHMARK+ AVERAGE++
----------- ----------- ----------- ----------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ONE YEAR 10.54% 13.10% 16.41% 17.01% 23.67% 12.72% 12.33%
FIVE YEAR 17.60% 17.96% 18.12% 18.94% 22.95% 15.27% 17.83%
SINCE INCEPTION 16.25% 16.05% 16.09% 16.92% 18.68% 14.26% 15.42%
INCEPTION DATE 1/1/89 1/1/89 1/1/89 1/1/89 12/31/88 12/31/88 12/31/88
VALUE NOVEMBER 30, 1998 $ 44,573 $ 43,787 $ 43,936 $ 47,167 $54,697 $37,534 $41,494
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
I SHARES S&P INDEX BENCHMARK LIPPER AVERAGE
<S> <C> <C> <C> <C>
12/31/88 $10,000.00 $10,000.00 $10,000.00 $10,000.00
01/31/89 $10,600.08 $10,730.23 $10,569.45 $10,578.00
02/28/89 $10,401.70 $10,463.48 $10,441.88 $10,432.02
03/31/89 $10,592.10 $10,707.30 $10,639.96 $10,644.84
04/30/89 $11,135.55 $11,262.64 $11,108.97 $11,085.53
05/31/89 $11,533.25 $11,663.14 $11,435.35 $11,460.22
06/30/89 $11,373.93 $11,650.94 $11,349.24 $11,400.63
07/31/89 $12,400.49 $12,701.97 $12,205.37 $12,183.85
08/31/89 $12,641.94 $12,949.46 $12,415.85 $12,437.28
09/30/89 $12,707.51 $12,896.73 $12,484.58 $12,386.29
10/31/89 $12,322.04 $12,597.65 $12,078.89 $12,032.04
11/30/89 $12,600.92 $12,853.51 $12,293.71 $12,219.74
12/31/89 $12,835.36 $13,161.74 $12,558.27 $12,388.37
01/31/90 $12,042.98 $12,278.59 $11,844.52 $11,682.23
02/28/90 $12,124.26 $12,437.90 $11,942.42 $11,829.43
03/31/90 $12,469.14 $12,767.24 $12,181.39 $12,082.58
04/30/90 $12,315.24 $12,449.21 $11,895.37 $11,786.56
05/31/90 $13,663.41 $13,660.41 $12,897.79 $12,710.62
06/30/90 $13,798.46 $13,568.32 $12,915.40 $12,705.54
07/31/90 $13,665.04 $13,524.96 $12,849.98 $12,606.43
08/31/90 $12,422.11 $12,303.92 $11,665.53 $11,594.14
09/30/90 $11,609.40 $11,705.95 $10,924.30 $11,021.39
10/31/90 $11,674.65 $11,656.47 $10,912.34 $10,852.76
11/30/90 $12,293.44 $12,408.47 $11,468.87 $11,500.67
12/31/90 $12,657.91 $12,753.93 $11,764.42 $11,836.49
01/31/91 $13,453.66 $13,307.97 $12,340.65 $12,407.01
02/28/91 $14,483.07 $14,258.54 $13,229.11 $13,215.94
03/31/91 $14,832.94 $14,603.46 $13,504.87 $13,523.88
04/30/91 $14,803.53 $14,637.78 $13,543.77 $13,538.75
05/31/91 $15,510.73 $15,267.50 $14,055.58 $14,084.36
06/30/91 $14,703.43 $14,568.55 $13,405.72 $13,498.45
07/31/91 $15,503.98 $15,247.03 $14,038.88 $14,065.39
08/31/91 $15,925.36 $15,607.19 $14,362.75 $14,388.89
09/30/91 $15,840.60 $15,345.93 $14,340.42 $14,252.20
10/31/91 $16,209.42 $15,551.38 $14,568.86 $14,467.41
11/30/91 $15,677.84 $14,926.84 $14,016.19 $13,895.95
12/31/91 $17,415.11 $16,631.03 $15,350.04 $15,268.86
01/31/92 $17,266.77 $16,321.10 $15,373.07 $15,268.86
02/29/92 $17,294.01 $16,532.78 $15,574.84 $15,543.70
03/31/92 $16,855.67 $16,211.55 $15,197.07 $15,285.68
04/30/92 $17,042.24 $16,686.90 $15,384.98 $15,547.06
05/31/92 $17,271.45 $16,768.50 $15,576.45 $15,643.46
06/30/92 $16,792.28 $16,519.16 $15,240.78 $15,332.15
07/31/92 $17,372.31 $17,193.86 $15,632.16 $15,841.18
08/31/92 $17,049.46 $16,842.25 $15,392.52 $15,525.94
09/30/92 $17,201.28 $17,040.23 $15,518.66 $15,707.59
10/31/92 $17,316.75 $17,098.73 $15,599.20 $15,801.84
11/30/92 $18,041.76 $17,679.35 $16,169.20 $16,394.41
12/31/92 $18,240.75 $17,896.26 $16,449.01 $16,655.08
01/31/93 $18,258.06 $18,045.75 $16,638.25 $16,848.28
02/28/93 $18,124.50 $18,291.60 $16,714.29 $16,999.91
03/31/93 $18,778.73 $18,677.52 $17,247.22 $17,447.01
04/30/93 $18,338.62 $18,226.08 $17,042.15 $17,145.18
05/31/93 $18,958.99 $18,712.21 $17,520.87 $17,541.23
06/30/93 $18,868.12 $18,766.85 $17,539.44 $17,611.39
07/31/93 $18,985.86 $18,691.35 $17,626.61 $17,600.83
08/31/93 $19,845.23 $19,399.10 $18,386.05 $18,248.54
09/30/93 $19,913.85 $19,245.96 $18,437.99 $18,235.76
10/31/93 $20,238.77 $19,643.75 $18,806.66 $18,503.83
11/30/93 $19,809.49 $19,457.37 $18,433.35 $18,257.73
12/31/93 $20,455.09 $19,692.69 $19,028.01 $18,668.53
01/31/94 $21,144.16 $20,361.55 $19,702.27 $19,256.59
02/28/94 $20,719.24 $19,809.35 $19,304.68 $18,869.53
03/31/94 $19,773.80 $18,946.85 $18,445.81 $18,092.10
04/30/94 $19,989.67 $19,190.01 $18,641.71 $18,282.07
05/31/94 $20,169.59 $19,504.13 $18,743.96 $18,461.24
06/30/94 $19,518.84 $19,026.48 $18,292.04 $18,034.78
07/31/94 $20,158.77 $19,650.79 $18,785.37 $18,539.75
08/31/94 $21,164.63 $20,455.06 $19,541.30 $19,240.56
09/30/94 $20,764.52 $19,955.75 $19,181.84 $18,798.02
10/31/94 $21,142.58 $20,402.60 $19,474.65 $19,012.32
11/30/94 $20,351.72 $19,660.56 $18,721.17 $18,316.47
12/31/94 $20,624.58 $19,951.60 $18,877.31 $18,514.29
01/31/95 $20,850.40 $20,468.58 $18,967.54 $18,804.96
02/28/95 $21,499.62 $21,265.51 $19,565.11 $19,519.55
03/31/95 $22,195.89 $21,892.01 $20,112.55 $20,025.11
04/30/95 $22,788.65 $22,536.22 $20,606.31 $20,493.70
05/31/95 $23,494.33 $23,435.17 $21,183.80 $21,174.09
06/30/95 $24,228.23 $23,979.10 $21,721.02 $21,629.33
07/31/95 $25,291.45 $24,773.87 $22,637.11 $22,349.59
08/31/95 $25,376.14 $24,835.90 $22,725.62 $22,508.27
09/30/95 $26,354.67 $25,883.45 $23,418.75 $23,217.28
10/31/95 $25,903.04 $25,791.02 $23,110.21 $22,934.03
11/30/95 $26,778.08 $26,922.09 $23,951.19 $23,945.42
12/31/95 $27,004.83 $27,440.66 $24,374.64 $24,350.10
01/31/96 $27,775.57 $28,373.51 $24,938.18 $25,036.77
02/29/96 $28,295.82 $28,637.30 $25,314.50 $25,414.82
03/31/96 $28,671.55 $28,913.07 $25,644.86 $25,768.09
04/30/96 $29,473.84 $29,338.90 $26,332.52 $26,208.72
05/31/96 $30,144.82 $30,094.35 $26,874.58 $26,727.66
06/30/96 $30,046.15 $30,209.04 $26,750.69 $26,652.82
07/31/96 $28,585.78 $28,875.01 $25,456.35 $25,520.07
08/31/96 $29,167.95 $29,484.97 $26,170.15 $26,239.74
09/30/96 $30,727.00 $31,143.02 $27,384.71 $27,452.02
10/31/96 $30,934.21 $32,001.67 $27,709.08 $28,001.06
11/30/96 $32,878.08 $34,418.47 $29,311.77 $29,865.93
12/31/96 $32,522.74 $33,736.64 $29,077.72 $29,555.32
01/31/97 $34,108.48 $35,843.15 $30,178.60 $30,840.98
02/28/97 $34,098.51 $36,124.52 $30,183.73 $31,007.52
03/31/97 $32,712.23 $34,643.05 $29,149.03 $29,906.75
04/30/97 $34,088.54 $36,709.41 $30,069.70 $31,013.30
05/31/97 $36,402.33 $38,942.92 $32,129.03 $32,939.23
06/30/97 $38,107.75 $40,686.67 $33,485.03 $34,210.68
07/31/97 $40,750.66 $43,923.09 $33,485.03 $36,728.59
08/31/97 $38,666.25 $41,464.27 $32,197.20 $35,465.13
09/30/97 $40,950.13 $43,733.78 $34,021.65 $37,259.66
10/31/97 $39,284.59 $42,274.82 $32,625.91 $35,955.57
11/30/97 $40,311.84 $44,230.16 $33,299.64 $36,940.76
12/31/97 $40,887.40 $44,989.19 $33,785.32 $37,557.67
01/31/98 $41,356.51 $45,486.28 $33,976.20 $37,595.22
02/28/98 $44,277.80 $48,765.06 $36,297.63 $40,159.22
03/31/98 $46,207.56 $51,260.27 $38,009.06 $41,942.29
04/30/98 $46,889.90 $51,775.80 $38,325.10 $42,227.50
05/31/98 $45,909.03 $50,886.81 $37,507.25 $41,357.61
06/30/98 $47,380.34 $52,952.20 $38,261.33 $42,044.14
07/31/98 $46,559.39 $52,389.85 $37,470.66 $40,955.20
08/31/98 $39,693.29 $44,824.75 $31,874.23 $34,959.36
09/30/98 $41,729.67 $47,696.54 $33,306.98 $36,812.21
10/31/98 $44,523.02 $51,572.79 $35,572.02 $39,492.13
11/30/98 $47,167.10 $54,697.23 $37,533.81 $41,494.39
</TABLE>
* 5/2/96 was the inception date of Class A shares of the Fund. Returns prior to
that date are for Class I shares.
** 5/6/96 and 10/1/98 were the inception dates of Class B and C shares,
respectively, of the Fund. Returns prior to May 6, 1996 for Class B shares and
prior to October 1, 1998 for Class C shares are for Class I shares, adjusted for
Class B and Class C share expenses, respectively. Performance shown for Class B
and Class C shares for the period prior to November 11, 1994 reflects
performance of the shares of the predecessor collective investment fund adjusted
to reflect Class B and Class C share expenses (before waivers and
reimbursements), respectively.
*** Prior to November 11, 1994, Norwest Investment Management managed a
collective investment fund with investment objectives and polices that were, in
all material respects, equivalent to the Fund. The performance of the Fund
includes the performance of the predecessor collective investment fund for the
periods before it became a mutual fund on November 11, 1994. The collective
investment 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, including
any applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 (the "1940 Act"), nor subject to certain
investment limitations, diversification requirements and other restrictions
imposed by the 1940 Act and the Internal Revenue Code, which, if applicable, may
have adversely affected the performance results.
+ Composite benchmark represents the appropriate base allocation percentages
applied to the Lipper Universe averages of the underlying component portfolios.
++ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES IN SALES
CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT CLASSES.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.5% SALES CHARGE FOR CLASS A
SHARES, THE MAXIMUM 4.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES AND THE MAXIMUM 1.0% DEFERRED SALES CHARGE
(DECLINING TO ZERO AFTER ONE YEAR) FOR CLASS C SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
12
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND
For the six months ending November 30, 1998, the fund lost 2.02%, beating its
blended benchmark, which declined 5.45%. We were satisfied with the overall
performance of the three complimentary equity styles that make up the strategic
asset allocation of the Fund. We employ these styles to help moderate the Fund's
annual return volatility, improve its overall performance and provide effective
diversification across equity investments.
While large company returns have still been higher than historic averages, the
past six months have brought increased volatility to the domestic stock market.
Investor sentiment temporarily turned gloomy, as corporate earnings became more
disappointing, economic turmoil in Russia was again front-page news, and hedge
fund bailouts drew attention. In fact, the market declined more than 15% in July
and August before rebounding over 22% in the final three months (as measured by
the S&P 500 Index). In addition, the disparity which existed between the returns
of large and small capitalization stocks in the U.S. continued to be evident,
with the S&P 500 Index (large cap stocks) generating a 7.47% return, while the
Russell 2000 Index (small cap stocks) lost 12.35% during the same period. In a
similar fashion to the domestic market, the 0.34% return of the MSCI EAFE Index
(international stocks) doesn't convey the volatility experienced abroad.
International stocks were again hammered in August and September, also declining
over 15%, only to regain lost ground in October and November.
The large company growth portfolio of the Growth Equity Fund gained 17.15%
during the past two fiscal quarters. Its stellar performance was generally
offset by the diversified small cap style, which fared poorly, losing 16.83%.
This Fund is comprised of a diversified portfolio of small company growth and
value stocks. The international style of non-U.S. growth stocks also detracted
from performance during the period, losing 6.60%. This wide variance of returns
between asset classes is exactly why the Fund is always diversified, allowing it
to better weather the market's turbulence.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
GROWTH EQUITY FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX"),
FUND COMPOSITE BENCHMARK ("BENCHMARK") 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 securities market index and two peer based averages.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
---------------------------------------------------------------------------------------
LIPPER
A SHARES* B SHARES** C SHARES** I SHARES*** S&P INDEX BENCHMARK+ AVERAGE++
----------- ----------- ----------- ----------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ONE YEAR 4.12% 6.43% 10.23% 10.18% 23.67% 5.57% 14.02%
FIVE YEAR 13.95% 14.28% 14.57% 15.24% 22.95% 12.21% 17.64%
SINCE INCEPTION 14.83% 14.67% 14.75% 15.51% 17.91% 12.14% 15.33%
INCEPTION DATE 5/1/89 5/1/89 5/1/89 5/1/89 4/30/89 4/30/89 4/30/89
VALUE NOVEMBER 30, 1998 $ 37,689 $ 37,182 $ 37,438 $ 39,870 $ 48,565 $ 30,006 $ 39,262
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
I SHARES S&P INDEX BENCHMARK LIPPER AVERAGE
<S> <C> <C> <C> <C>
04/30/89 $10,000.00 $10,000.00 $10,000.00 $10,000.00
05/31/89 $10,314.96 $10,355.60 $10,234.20 $10,421.00
06/30/89 $10,091.17 $10,344.77 $10,082.27 $10,292.82
07/31/89 $11,026.97 $11,277.97 $10,817.12 $11,047.29
08/31/89 $11,334.78 $11,497.71 $11,015.61 $11,326.78
09/30/89 $11,524.81 $11,450.89 $11,192.58 $11,348.30
10/31/89 $10,972.95 $11,185.34 $10,731.33 $10,988.56
11/30/89 $11,225.51 $11,412.52 $10,931.96 $11,147.90
12/31/89 $11,426.51 $11,686.19 $11,195.20 $11,269.41
01/31/90 $10,726.82 $10,902.05 $10,559.98 $10,540.28
02/28/90 $10,838.92 $11,043.50 $10,635.49 $10,718.41
03/31/90 $11,165.30 $11,335.92 $10,896.06 $11,037.82
04/30/90 $11,096.05 $11,053.54 $10,673.07 $10,796.09
05/31/90 $12,477.71 $12,128.96 $11,615.66 $11,812.00
06/30/90 $12,726.72 $12,047.19 $11,734.08 $11,848.62
07/31/90 $12,513.66 $12,008.69 $11,657.52 $11,655.48
08/31/90 $11,228.40 $10,924.55 $10,405.27 $10,593.67
09/30/90 $10,163.74 $10,393.61 $9,538.98 $9,988.77
10/31/90 $10,269.34 $10,349.68 $9,577.94 $9,805.98
11/30/90 $10,813.41 $11,017.37 $9,998.99 $10,471.80
12/31/90 $11,270.73 $11,324.10 $10,302.16 $10,841.46
01/31/91 $12,171.33 $11,816.03 $10,928.73 $11,548.32
02/28/91 $13,207.20 $12,660.03 $11,800.36 $12,382.11
03/31/91 $13,556.94 $12,966.29 $12,084.27 $12,788.24
04/30/91 $13,449.76 $12,996.76 $12,097.14 $12,775.45
05/31/91 $14,188.29 $13,555.88 $12,514.25 $13,338.85
06/30/91 $13,298.84 $12,935.29 $11,866.58 $12,658.57
07/31/91 $14,236.23 $13,537.70 $12,489.57 $13,329.47
08/31/91 $14,739.28 $13,857.49 $12,796.07 $13,738.69
09/30/91 $14,918.60 $13,625.51 $12,901.63 $13,608.17
10/31/91 $15,525.47 $13,807.93 $13,162.38 $13,892.58
11/30/91 $14,901.69 $13,253.41 $12,661.48 $13,350.77
12/31/91 $16,536.47 $14,766.55 $13,840.58 $14,856.74
01/31/92 $16,858.37 $14,491.36 $14,118.22 $14,893.88
02/29/92 $16,741.53 $14,679.31 $14,288.14 $15,120.27
03/31/92 $16,013.31 $14,394.09 $13,805.20 $14,686.32
04/30/92 $15,826.67 $14,816.16 $13,694.34 $14,643.73
05/31/92 $16,141.15 $14,888.61 $13,934.06 $14,760.88
06/30/92 $15,469.37 $14,667.21 $13,478.28 $14,352.00
07/31/92 $15,861.28 $15,266.28 $13,674.39 $14,862.93
08/31/92 $15,610.72 $14,954.08 $13,505.10 $14,544.86
09/30/92 $15,774.14 $15,129.87 $13,597.54 $14,790.67
10/31/92 $16,062.94 $15,181.81 $13,758.40 $15,085.01
11/30/92 $17,029.40 $15,697.34 $14,399.82 $15,837.75
12/31/92 $17,372.52 $15,889.93 $14,714.74 $16,111.74
01/31/93 $17,511.68 $16,022.66 $14,914.05 $16,311.53
02/28/93 $16,920.60 $16,240.95 $14,771.55 $16,084.80
03/31/93 $17,716.72 $16,583.60 $15,355.25 $16,543.21
04/30/93 $17,466.73 $16,182.78 $15,259.20 $16,040.30
05/31/93 $18,198.77 $16,614.40 $15,841.64 $16,643.41
06/30/93 $18,111.01 $16,662.92 $15,802.99 $16,685.02
07/31/93 $18,359.25 $16,595.88 $15,968.52 $16,619.95
08/31/93 $19,442.94 $17,224.29 $16,767.51 $17,334.61
09/30/93 $19,840.21 $17,088.32 $16,974.00 $17,494.09
10/31/93 $20,227.41 $17,441.52 $17,372.38 $17,739.01
11/30/93 $19,613.09 $17,276.03 $16,863.98 $17,419.70
12/31/93 $20,802.88 $17,484.97 $17,746.72 $17,912.68
01/31/94 $21,508.85 $18,078.84 $18,428.02 $18,491.26
02/28/94 $21,238.09 $17,588.55 $18,204.30 $18,197.25
03/31/94 $20,132.91 $16,822.74 $17,337.14 $17,354.72
04/30/94 $20,382.69 $17,038.64 $17,495.60 $17,420.66
05/31/94 $20,212.96 $17,317.55 $17,402.26 $17,509.51
06/30/94 $19,423.27 $16,893.44 $16,909.43 $16,914.19
07/31/94 $20,052.11 $17,447.77 $17,305.96 $17,364.10
08/31/94 $21,059.02 $18,161.87 $18,108.18 $18,188.90
09/30/94 $20,730.27 $17,718.54 $17,886.44 $17,850.59
10/31/94 $21,003.04 $18,115.29 $18,165.38 $18,145.12
11/30/94 $20,125.63 $17,456.44 $17,433.95 $17,470.12
12/31/94 $20,516.78 $17,714.85 $17,567.41 $17,623.86
01/31/95 $20,330.52 $18,173.87 $17,292.13 $17,761.32
02/28/95 $20,879.99 $18,881.46 $17,773.89 $18,430.93
03/31/95 $21,625.04 $19,437.72 $18,297.50 $18,954.37
04/30/95 $22,118.63 $20,009.72 $18,698.49 $19,361.88
05/31/95 $22,556.35 $20,807.88 $19,053.39 $19,956.29
06/30/95 $23,580.79 $21,290.83 $19,729.88 $20,816.41
07/31/95 $25,145.39 $21,996.50 $20,882.21 $21,809.35
08/31/95 $25,285.09 $22,051.58 $20,944.02 $21,970.74
09/30/95 $25,964.95 $22,981.69 $21,424.68 $22,616.68
10/31/95 $25,126.77 $22,899.62 $20,942.63 $22,295.53
11/30/95 $25,611.05 $23,903.89 $21,569.02 $23,098.16
12/31/95 $25,619.06 $24,364.32 $21,914.45 $23,162.84
01/31/96 $26,084.68 $25,192.59 $22,207.99 $23,686.32
02/29/96 $26,792.82 $25,426.80 $22,740.32 $24,245.32
03/31/96 $27,268.14 $25,671.66 $23,137.02 $24,436.85
04/30/96 $28,493.01 $26,049.76 $24,225.27 $25,226.16
05/31/96 $29,103.50 $26,720.51 $24,787.54 $25,889.61
06/30/96 $28,523.03 $26,822.34 $24,399.99 $25,560.81
07/31/96 $26,851.68 $25,637.87 $22,911.96 $24,070.62
08/31/96 $27,722.38 $26,179.44 $23,749.39 $24,896.24
09/30/96 $29,103.50 $27,651.62 $24,810.04 $26,345.20
10/31/96 $28,883.32 $28,414.00 $24,675.19 $26,571.77
11/30/96 $30,344.50 $30,559.85 $25,787.67 $28,219.22
12/31/96 $30,430.97 $29,954.46 $25,808.30 $27,787.47
01/31/97 $31,442.95 $31,824.82 $26,452.74 $29,179.62
02/28/97 $31,054.51 $32,074.64 $26,078.03 $28,820.71
03/31/97 $29,735.87 $30,759.26 $25,214.98 $27,483.43
04/30/97 $30,451.41 $32,593.96 $25,524.75 $28,563.53
05/31/97 $33,211.36 $34,577.08 $27,692.69 $30,634.38
06/30/97 $34,908.22 $36,125.33 $28,975.28 $31,838.31
07/31/97 $37,044.62 $38,998.92 $28,975.28 $34,493.63
08/31/97 $35,613.54 $36,815.76 $28,192.80 $33,334.64
09/30/97 $37,995.27 $38,830.84 $30,007.43 $35,178.05
10/31/97 $36,185.97 $37,535.44 $28,470.75 $33,848.32
11/30/97 $36,185.97 $39,271.57 $28,423.63 $34,433.90
12/31/97 $36,544.00 $39,945.51 $28,676.46 $34,774.79
01/31/98 $37,102.18 $40,386.86 $28,768.08 $34,959.10
02/28/98 $39,790.58 $43,298.07 $30,883.83 $37,598.51
03/31/98 $41,248.70 $45,513.55 $32,344.33 $39,267.88
04/30/98 $42,000.54 $45,971.28 $32,704.80 $39,739.10
05/31/98 $40,690.51 $45,181.95 $31,734.62 $38,570.77
06/30/98 $41,829.67 $47,015.79 $32,145.42 $39,951.60
07/31/98 $40,884.17 $46,516.49 $31,215.13 $39,016.73
08/31/98 $34,106.21 $39,799.51 $25,899.82 $32,629.70
09/30/98 $35,507.37 $42,349.34 $26,691.32 $34,564.64
10/31/98 $37,455.32 $45,791.03 $28,323.23 $37,015.27
11/30/98 $39,870.32 $48,565.19 $30,005.63 $39,262.10
</TABLE>
* 5/2/96 was the inception date of Class A shares of the Fund. Returns prior to
that date are for Class I shares.
** 5/6/96 and 10/1/98 were the inception dates of Class B and C shares,
respectively, of the Fund. Returns prior to May 6, 1996 for Class B shares and
prior to October 1, 1998 for Class C shares are for Class I shares, adjusted for
Class B and Class C share expenses, respectively. Performance shown for Class B
and Class C shares for the period prior to November 11, 1994 reflects
performance of the shares of the predecessor collective investment fund adjusted
to reflect Class B and Class C share expenses (before waivers and
reimbursements), respectively.
*** Prior to November 11, 1994, Norwest Investment Management managed a
collective investment fund with investment objectives and polices that were, in
all material respects, equivalent to the Fund. The performance of the Fund
includes the performance of the predecessor collective investment fund for the
periods before it became a mutual fund on November 11, 1994. The collective
investment 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, including
any applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 (the "1940 Act"), nor subject to certain
investment limitations, diversification requirements and other restrictions
imposed by the 1940 Act and the Internal Revenue Code, which, if applicable, may
have adversely affected the performance results.
+ Composite benchmark represents the appropriate base allocation percentages
applied to the Lipper Universe averages of the underlying component portfolios.
++ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES IN SALES
CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT CLASSES.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.5% SALES CHARGE FOR CLASS A
SHARES, THE MAXIMUM 4.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES AND THE MAXIMUM 1.0% DEFERRED SALES CHARGE
(DECLINING TO ZERO AFTER ONE YEAR) FOR CLASS C SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
13
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
The Large Company Growth Fund outperformed the Russell 1000 Growth Index and the
Lipper Growth Funds Average for the six month period ending November 30, 1998.
The Fund's return of 17.15% well outpaced the 12.17% return of the Index and the
1.79% return of the Average.
Throughout 1998, investors seemingly sought out high-quality, larger
capitalization growth stocks. Both short- and long-term factors explain the
rotation to growth. On a secular basis, high quality growth stocks offer
investors one of the few remaining alternatives for higher potential long-term
investment returns. On a near-term basis, true growth stock fundamentals are
once again outshining most other companies. For these reasons, combined with
very attractive relative valuations, investors have been drawn, once again, to
growth stocks.
The Large Company Growth Fund leverages the long-term opportunities in true
growth stock investing. Believing in the philosophy that earnings growth drives
long-term investment returns, we focus the portfolio only on true growth
companies.
A number of the style's elements aided Fund performance. First, since only a
select number of companies meet our long-term criteria, we focus on 30-50 growth
companies and concentrate on our best ideas. As they did in 1998, the
portfolio's top ten holdings have consistently added a disproportionate amount
of value. Second, remaining fully invested benefited performance. As is
typically the case, returns came in very short bursts during 1998 and it was
necessary to remain fully invested to capture the opportunities. Third, the
style's broad mid-to-large capitalization and pure growth focus allow us to
maintain and enhance the portfolio's very high growth rate profile. Fourth, our
sell disciplines were utilized to maintain and enhance the portfolio's high
quality and rapid growth characteristics.
Long-term investing was rewarded in 1998. As profit growth naturally slows for
most U.S. companies, there is typically confusion about a company's true
long-term earnings growth rate. Many investors will sell at the first sign of
any earnings trouble or slowdown. We have always chosen to focus on each
holding's sustainable, trend-line earnings growth rate--weeding out the usual
short-term noise.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES.
- --------------------------------------------------------------------------------
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 two broad-based securities market indices and a peer based
average. The Fund's total return includes operating expenses and sales charges
(if applicable) that reduce returns, while the total return of the Indices does
not. The Lipper Average does not include sales charges but does include
management fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
---------------------------------------------------------
I S&P LIPPER
A SHARES* B SHARES** SHARES*** INDEX AVERAGE+
---------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 27.02% 30.53% 34.45% 23.67% 14.02%
FIVE YEAR 22.13% 22.56% 23.54% 22.95% 17.64%
TEN YEAR 19.79% 19.63% 20.47% 18.72% 16.34%
VALUE NOVEMBER 30,
1998 $63,998 $60,093 $64,472 $55,651 $45,468
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
I SHARES S&P INDEX LIPPER AVERAGE
<S> <C> <C> <C>
11/30/88 $10,000.00 $10,000.00 $10,000.00
12/31/88 $10,265.71 $10,174.32 $10,260.00
01/31/89 $10,838.64 $10,917.28 $10,912.54
02/28/89 $10,611.65 $10,645.88 $10,771.76
03/31/89 $10,779.04 $10,893.95 $11,023.82
04/30/89 $11,422.09 $11,458.97 $11,580.53
05/31/89 $11,985.40 $11,866.45 $12,068.07
06/30/89 $11,668.66 $11,854.04 $11,919.63
07/31/89 $12,815.18 $12,923.39 $12,793.34
08/31/89 $12,982.51 $13,175.19 $13,117.01
09/30/89 $13,086.41 $13,121.54 $13,141.93
10/31/89 $12,746.91 $12,817.25 $12,725.33
11/30/89 $13,043.63 $13,077.57 $12,909.85
12/31/89 $13,042.55 $13,391.17 $13,050.57
01/31/90 $11,990.73 $12,492.63 $12,206.20
02/28/90 $12,243.17 $12,654.72 $12,412.48
03/31/90 $12,874.48 $12,989.80 $12,782.37
04/30/90 $12,872.58 $12,666.23 $12,502.44
05/31/90 $14,672.82 $13,898.54 $13,678.92
06/30/90 $14,977.85 $13,804.85 $13,721.32
07/31/90 $14,384.74 $13,760.72 $13,497.67
08/31/90 $13,087.68 $12,518.41 $12,268.03
09/30/90 $12,357.65 $11,910.01 $11,567.52
10/31/90 $12,065.42 $11,859.67 $11,355.84
11/30/90 $13,125.25 $12,624.77 $12,126.90
12/31/90 $13,489.60 $12,976.26 $12,554.98
01/31/91 $14,821.31 $13,539.96 $13,373.56
02/28/91 $16,050.35 $14,507.09 $14,339.13
03/31/91 $16,843.63 $14,858.03 $14,809.46
04/30/91 $16,701.55 $14,892.95 $14,794.65
05/31/91 $18,061.12 $15,533.64 $15,447.09
06/30/91 $17,156.83 $14,822.51 $14,659.29
07/31/91 $18,505.82 $15,512.81 $15,436.23
08/31/91 $19,292.17 $15,879.26 $15,910.13
09/30/91 $18,742.91 $15,613.44 $15,758.98
10/31/91 $19,567.78 $15,822.47 $16,088.34
11/30/91 $19,716.48 $15,187.04 $15,460.90
12/31/91 $22,533.45 $16,920.94 $17,204.89
01/31/92 $22,041.95 $16,605.61 $17,247.90
02/29/92 $21,912.59 $16,820.98 $17,510.07
03/31/92 $21,198.12 $16,494.15 $17,007.53
04/30/92 $20,851.37 $16,977.79 $16,958.21
05/31/92 $21,227.87 $17,060.81 $17,093.87
06/30/92 $20,249.03 $16,807.12 $16,620.37
07/31/92 $21,224.02 $17,493.59 $17,212.06
08/31/92 $20,700.65 $17,135.84 $16,843.72
09/30/92 $21,050.84 $17,337.27 $17,128.38
10/31/92 $21,547.15 $17,396.79 $17,469.23
11/30/92 $22,949.59 $17,987.54 $18,340.95
12/31/92 $22,949.59 $18,208.23 $18,658.24
01/31/93 $22,773.20 $18,360.32 $18,889.61
02/28/93 $21,866.15 $18,610.46 $18,627.04
03/31/93 $22,658.07 $19,003.10 $19,157.91
04/30/93 $20,732.81 $18,543.80 $18,575.51
05/31/93 $21,750.96 $19,038.40 $19,273.95
06/30/93 $21,471.34 $19,093.99 $19,322.14
07/31/93 $21,667.05 $19,017.18 $19,246.78
08/31/93 $22,461.92 $19,737.26 $20,074.39
09/30/93 $22,673.52 $19,581.46 $20,259.08
10/31/93 $23,012.15 $19,986.18 $20,542.70
11/30/93 $22,404.44 $19,796.56 $20,172.93
12/31/93 $22,866.73 $20,035.97 $20,743.83
01/31/94 $23,705.05 $20,716.50 $21,413.85
02/28/94 $23,482.52 $20,154.67 $21,073.37
03/31/94 $22,435.11 $19,277.13 $20,097.68
04/30/94 $22,300.96 $19,524.53 $20,174.05
05/31/94 $22,516.75 $19,844.13 $20,276.93
06/30/94 $21,239.39 $19,358.15 $19,587.52
07/31/94 $22,297.33 $19,993.35 $20,108.55
08/31/94 $23,271.71 $20,811.63 $21,063.70
09/30/94 $22,854.76 $20,303.62 $20,671.92
10/31/94 $23,372.68 $20,758.26 $21,013.00
11/30/94 $22,384.55 $20,003.28 $20,231.32
12/31/94 $22,622.68 $20,299.39 $20,409.36
01/31/95 $23,086.41 $20,825.39 $20,568.55
02/28/95 $23,662.95 $21,636.21 $21,343.98
03/31/95 $24,364.82 $22,273.63 $21,950.15
04/30/95 $25,004.02 $22,929.08 $22,422.08
05/31/95 $25,781.08 $23,843.69 $23,110.44
06/30/95 $27,648.55 $24,397.11 $24,106.50
07/31/95 $29,002.15 $25,205.72 $25,256.38
08/31/95 $29,265.35 $25,268.84 $25,443.28
09/30/95 $30,506.15 $26,334.65 $26,191.31
10/31/95 $29,566.15 $26,240.61 $25,819.39
11/30/95 $30,167.75 $27,391.39 $26,748.89
12/31/95 $29,236.88 $27,919.01 $26,823.79
01/31/96 $30,008.61 $28,868.11 $27,430.00
02/29/96 $31,412.89 $29,136.50 $28,077.35
03/31/96 $31,767.12 $29,417.09 $28,299.16
04/30/96 $33,070.19 $29,850.34 $29,213.23
05/31/96 $34,120.24 $30,618.96 $29,981.53
06/30/96 $33,664.80 $30,735.65 $29,600.77
07/31/96 $31,792.42 $29,378.36 $27,875.04
08/31/96 $32,134.01 $29,998.95 $28,831.16
09/30/96 $35,119.69 $31,685.91 $30,509.13
10/31/96 $34,841.36 $32,559.52 $30,771.51
11/30/96 $37,055.32 $35,018.45 $32,679.34
12/31/96 $36,578.35 $34,324.73 $32,179.35
01/31/97 $39,510.73 $36,467.97 $33,791.54
02/28/97 $38,618.27 $36,754.24 $33,375.90
03/31/97 $35,877.12 $35,246.95 $31,827.26
04/30/97 $38,682.02 $37,349.33 $33,078.07
05/31/97 $41,601.65 $39,621.77 $35,476.23
06/30/97 $43,794.57 $41,395.92 $36,870.45
07/31/97 $47,836.16 $44,688.75 $39,945.44
08/31/97 $45,197.02 $42,187.08 $38,603.27
09/30/97 $48,346.14 $44,496.14 $40,738.03
10/31/97 $46,522.96 $43,011.75 $39,198.14
11/30/97 $47,950.91 $45,001.18 $39,876.26
12/31/97 $48,777.78 $45,773.44 $40,271.04
01/31/98 $50,059.23 $46,279.19 $40,484.48
02/28/98 $54,027.60 $49,615.13 $43,541.05
03/31/98 $55,419.28 $52,153.84 $45,474.28
04/30/98 $56,866.08 $52,678.35 $46,019.97
05/31/98 $55,033.47 $51,773.87 $44,666.98
06/30/98 $60,049.03 $53,875.26 $46,266.06
07/31/98 $60,173.05 $53,303.11 $45,183.43
08/31/98 $50,128.13 $45,606.14 $37,786.91
09/30/98 $54,840.56 $48,527.99 $40,027.67
10/31/98 $58,864.04 $52,471.81 $42,865.63
11/30/98 $64,472.11 $55,650.71 $45,467.57
</TABLE>
* 10/6/98 was the inception date of Class A shares of the Fund. Returns prior to
that date are for Class I shares, and have not been adjusted for Class A share
expenses. If such returns had been adjusted for Class A share expenses, returns
would have been lower.
** 10/1/98 was the inception date of Class B shares of the Fund. Returns prior
to that date are for Class I shares, adjusted for Class B share expenses.
Performance shown for Class B shares for the period prior to November 11, 1994
reflects performance of the shares of the predecessor collective investment fund
adjusted to reflect Class B share expenses (before waivers and reimbursements).
*** Prior to November 11, 1994, Norwest Investment Management managed a
collective investment fund with investment objectives and polices that were, in
all material respects, equivalent to the Fund. The performance of the Fund
includes the performance of the predecessor collective investment fund for the
periods before it became a mutual fund on November 11, 1994. The collective
investment 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, including
any applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 (the "1940 Act"), nor subject to certain
investment limitations, diversification requirements and other restrictions
imposed by the 1940 Act and the Internal Revenue Code, which, if applicable, may
have adversely affected the performance results.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES IN SALES
CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT CLASSES.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.5% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 4.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
14
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
The Diversified Small Cap Fund trailed its benchmarks for the six month period
ending November 30, 1998 with a loss of 16.83% versus a decline of 12.35% for
the Russell 2000 Small Stock Index and a decline of 12.33% for the Lipper Small
Cap Fund Average. While we were disappointed with the results over the past two
fiscal quarters, bear in mind that the correction experienced by small cap
companies in August and September was partially caused by an emotional flight to
quality and liquidity in the wake of the problems experienced in the economies
of Russia and Southeast Asia. The fund is comprised of five different small cap
investing styles: two value styles, two growth styles and an index style. The
index style tracks the S&P 600 Index of small company stocks. We employ these
styles to help moderate the Fund's annual return volatility, improve its overall
performance and provide effective diversification across small cap investments.
Over the past twelve months, small stocks had a very tough time. The market was
very narrow and liquidity driven. Overall, 70% of the S&P 500 Index constituents
lagged the Index's return, and 40% of its stocks were down for the year. The
Russell 2000 Small Stock Index underperformed the S&P 500 Index by one of the
widest margins in the common history of these two indices. Small caps lost to
large across every economic sector.
While small stocks have rebounded sharply off of their October lows, they remain
over 17% below their highs reached in April. Meanwhile, the S&P 500 Index, on
the strength of its largest constituents, has fully recovered its earlier
losses. This dramatic performance divergence has allowed relative valuations for
small stocks to remain near historic lows. Despite reaching these record lows,
we have yet to see much change in investors' appetites for large stocks.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
DIVERSIFIED SMALL CAP FUND VS. RUSSELL 2000 VALUE 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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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>
TOTAL RETURN AS OF NOVEMBER 30, 1998
----------------------------------------------------------------------
RUSSELL LIPPER
A SHARES* B SHARES** I SHARES INDEX AVERAGE+
--------- ---------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
SINCE INCEPTION (17.25%) (16.38%) (12.50%) (9.30%) (7.42%)
INCEPTION DATE 12/31/97 12/31/97 12/31/97 12/31/97 12/31/97
VALUE NOVEMBER 30, 1998 $8,275 $8,711 $8,750 $9,070 $9,258
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
I SHARES RUSSELL INDEX LIPPER AVERAGE
<S> <C> <C> <C>
12/31/97 $10,000.00 $10,000.00 $10,000.00
01/31/98 $9,880.00 $9,819.08 $9,836.00
02/28/98 $10,690.00 $10,412.68 $10,601.24
03/31/98 $11,170.00 $10,835.03 $11,099.50
04/30/98 $11,220.00 $10,888.59 $11,189.41
05/31/98 $10,520.00 $10,503.10 $10,559.44
06/30/98 $10,450.00 $10,443.77 $10,640.75
07/31/98 $9,660.00 $9,625.74 $9,876.74
08/31/98 $7,600.00 $8,118.27 $7,896.46
09/30/98 $7,970.00 $8,576.73 $8,359.98
10/31/98 $8,320.00 $8,831.40 $8,695.21
11/30/98 $8,750.00 $9,070.45 $9,257.79
</TABLE>
* 10/6/98 was the inception date of Class A shares of the Fund. Returns prior to
that date are for Class I shares, and have not been adjusted for Class A share
expenses. If such returns had been adjusted for Class A share expenses, returns
would have been lower.
** 10/1/98 was the inception date of Class B shares of the Fund. Returns prior
to that date are for Class I shares, adjusted for Class B share expenses.
+Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES IN SALES
CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT CLASSES.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.5% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 4.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES.
INVESTMENTS IN SMALL COMPANIES GENERALLY CARRY GREATER RISK THAN IS CUSTOMARILY
ASSOCIATED WITH LARGER COMPANIES SUCH AS NARROWER MARKETS, LIMITED FINANCIAL
RESOURCES AND LESS LIQUID STOCKS.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
15
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
SMALL COMPANY STOCK FUND
The Small Company Stock Fund missed its benchmarks for the six month period
ending November 30, 1998 with a loss of 22.72% versus a decline of 12.35% for
the Russell 2000 Small Stock Index and a decline of 12.33% for the Lipper Small
Cap Fund Average. While we were very disappointed with the results over the past
two fiscal quarters, bear in mind that the correction experienced by small cap
companies in August and September was partially caused by an emotional flight to
quality and liquidity in the wake of the problems experienced in the economies
of Russia and Southeast Asia.
We attribute most of the index-related underperformance to the smaller size of
the average company in the Fund, compared to the index. During this correction,
it was a widely accepted concept that the smaller the company's size, the worse
the performance.
Leading up to the correction (which for small caps began in late April), the
Fund was strategically trying to get bigger, more liquid and cheaper (i.e. lower
relative valuations). From year end 1997 to June 30, 1998, the Fund had
increased its average weighted market cap from $400 million to $594 million and
its relative P/E valuation from a 10% discount to a 17% discount. At the same
time, the Fund was becoming much more closely weighted, in a sector sense, to
the market. The purpose of these moves was to reduce volatility (therefore risk)
and seek to produce a more consistent pattern of outperformance. These moves
toward a more conservative fund posture with respect to liquidity and valuation
should have produced a better experience in a correction than they actually did.
It is our belief that investors panicked out of small caps.
By the end of November, the fund's average market cap was above $800 million and
its relative P/E discount to the market was 24%. As stocks recovered off early
October lows, small caps participated, but again slightly lagged large caps. The
past twelve months as a whole, produced a startling gap in performance between
market cap and styles. For the period, large cap growth returned 28.66% while
small cap value declined 6.22%. The Fund is now conservatively positioned for a
volatile and uncertain outlook in 1999 for the small cap market.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
SMALL COMPANY STOCK FUND VS. RUSSELL 2000 VALUE 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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
-------------------------------------------------------------------------
RUSSELL LIPPER
A SHARES B SHARES I SHARES INDEX AVERAGE+
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
ONE YEAR (25.80%) (23.96%) (21.43%) (6.34%) (6.64%)
SINCE INCEPTION 4.94% 5.02% 6.08% 10.30% 12.17%
INCEPTION DATE 12/31/93 12/31/93 12/31/93 12/31/93 12/31/93
VALUE NOVEMBER 30, 1998 $12,677 $12,927 $13,368 $16,197 $17,588
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
A SHARES B SHARES I SHARES RUSSELL INDEX LIPPER AVERAGE
<S> <C> <C> <C> <C> <C>
12/31/93 $9,450.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
01/31/94 $9,457.56 $10,008.00 $10,008.00 $10,306.00 $10,251.00
02/28/94 $9,416.85 $9,951.90 $9,924.85 $10,267.87 $10,249.97
03/31/94 $9,201.58 $9,711.13 $9,697.05 $9,709.30 $9,716.98
04/30/94 $9,562.43 $10,092.74 $10,078.90 $9,766.58 $9,724.75
05/31/94 $9,372.32 $9,884.66 $9,877.73 $9,640.59 $9,553.59
06/30/94 $9,019.91 $9,512.22 $9,504.79 $9,293.53 $9,190.56
07/31/94 $9,558.62 $10,071.47 $10,074.88 $9,438.51 $9,346.80
08/31/94 $9,974.55 $10,505.98 $10,515.02 $9,951.02 $9,907.60
09/30/94 $9,984.10 $10,505.98 $10,525.13 $9,905.25 $9,954.17
10/31/94 $9,936.28 $10,455.47 $10,474.53 $9,863.64 $10,069.64
11/30/94 $9,333.21 $9,798.21 $9,826.21 $9,447.40 $9,706.13
12/31/94 $9,756.45 $10,239.29 $10,274.13 $9,683.58 $9,912.87
01/31/95 $9,567.89 $10,040.22 $10,084.82 $9,553.73 $9,809.77
02/28/95 $9,912.30 $10,398.73 $10,439.07 $9,938.50 $10,209.03
03/31/95 $9,854.16 $10,320.00 $10,377.54 $10,101.20 $10,488.76
04/30/95 $10,128.16 $10,608.93 $10,667.52 $10,310.37 $10,631.40
05/31/95 $10,330.92 $10,805.36 $10,882.10 $10,479.44 $10,800.44
06/30/95 $10,816.39 $11,316.98 $11,395.89 $11,012.98 $11,426.87
07/31/95 $11,826.18 $12,360.68 $12,464.57 $11,646.50 $12,265.60
08/31/95 $12,049.50 $12,590.90 $12,700.92 $11,879.70 $12,474.12
09/30/95 $11,918.31 $12,452.71 $12,562.08 $12,092.49 $12,766.01
10/31/95 $11,301.01 $11,799.86 $11,908.77 $11,552.80 $12,342.18
11/30/95 $11,626.82 $12,130.20 $12,253.58 $12,050.52 $12,838.33
12/31/95 $11,651.30 $12,145.26 $12,268.71 $12,358.21 $13,063.01
01/31/96 $11,641.12 $12,123.80 $12,257.93 $12,344.08 $13,014.67
02/29/96 $11,905.92 $12,392.02 $12,549.02 $12,734.21 $13,550.88
03/31/96 $12,435.52 $12,939.20 $13,098.85 $12,986.78 $13,919.46
04/30/96 $13,851.20 $14,398.35 $14,597.40 $13,684.62 $14,963.42
05/31/96 $14,278.95 $14,838.24 $15,050.20 $14,234.16 $15,590.39
06/30/96 $13,158.64 $13,658.05 $13,864.29 $13,653.84 $15,001.07
07/31/96 $11,824.44 $12,263.28 $12,462.77 $12,462.27 $13,734.98
08/31/96 $12,812.36 $13,282.53 $13,497.74 $13,185.95 $14,560.45
09/30/96 $13,331.78 $13,808.26 $14,047.57 $13,700.77 $15,300.12
10/31/96 $13,566.02 $14,044.29 $14,295.53 $13,487.59 $15,010.95
11/30/96 $14,197.48 $14,688.04 $14,963.95 $14,040.91 $15,456.78
12/31/96 $14,673.18 $15,166.66 $15,456.09 $14,401.61 $15,680.90
01/31/97 $14,977.96 $15,476.65 $15,778.81 $14,686.63 $16,074.49
02/28/97 $14,183.35 $14,650.01 $14,948.95 $14,331.07 $15,431.51
03/31/97 $13,007.75 $13,421.52 $13,704.17 $13,659.09 $14,655.31
04/30/97 $12,594.12 $12,996.71 $13,277.71 $13,692.74 $14,558.58
05/31/97 $15,184.78 $15,648.87 $15,997.80 $15,219.76 $16,299.79
06/30/97 $15,456.91 $15,924.42 $16,285.94 $15,866.43 $17,163.68
07/31/97 $16,469.23 $16,957.73 $17,357.84 $16,606.72 $18,243.27
08/31/97 $16,891.30 $17,379.95 $17,793.23 $16,981.47 $18,580.77
09/30/97 $18,157.59 $18,669.12 $19,134.31 $18,221.15 $19,978.05
10/31/97 $16,902.61 $17,368.01 $17,805.20 $17,411.22 $19,114.99
11/30/97 $16,145.10 $16,580.18 $17,014.93 $17,292.69 $18,839.74
12/31/97 $16,041.09 $16,470.63 $16,905.78 $17,603.09 $18,997.99
01/31/98 $15,671.86 $16,078.48 $16,514.31 $17,335.00 $18,686.43
02/28/98 $17,230.84 $17,661.63 $18,152.69 $18,634.83 $20,140.23
03/31/98 $17,709.48 $18,140.94 $18,660.15 $19,417.86 $21,086.82
04/30/98 $17,777.85 $18,213.56 $18,747.15 $19,524.52 $21,257.62
05/31/98 $16,410.33 $16,790.17 $17,297.25 $18,477.03 $20,060.82
06/30/98 $16,547.08 $16,920.89 $17,442.24 $18,529.91 $20,215.29
07/31/98 $14,728.27 $15,047.25 $15,528.38 $17,016.76 $18,763.83
08/31/98 $11,022.27 $11,256.39 $11,613.66 $13,717.21 $15,001.68
09/30/98 $11,569.28 $11,808.31 $12,193.62 $14,778.57 $15,882.28
10/31/98 $12,006.89 $12,244.04 $12,686.58 $15,384.81 $16,519.16
11/30/98 $12,676.98 $12,926.69 $13,368.03 $16,197.12 $17,587.95
</TABLE>
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. Although gathered from reliable sources, data
accuracy and completeness cannot be guaranteed.
INVESTMENTS IN SMALL COMPANIES GENERALLY CARRY GREATER RISK THAN IS CUSTOMARILY
ASSOCIATED WITH LARGER COMPANIES SUCH AS NARROWER MARKETS, LIMITED FINANCIAL
RESOURCES AND LESS LIQUID STOCKS.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.5% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 4.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
16
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
For the six month period ended November 30, 1998, the Norwest Small Cap
Opportunities Fund returned -15.54% versus the Lipper Smaller Companies Universe
Average return of -12.33% and the Russell 2000 Index return of -12.35% for the
same period.
In the six months ending November 30, 1998 there was a sharp correction in the
U.S. equity markets which hit smaller companies particularly hard. The Russell
2000 Index fell by 12.35%, the S&P 500 Index rose 7.47% and the NASDAQ Composite
Index rose 9.59%. After a strong start to the period, the markets peaked in
mid-July, then experienced a marked sell off. Fears of recession, concerns about
the stability of the U.S. financial markets and continued turmoil in the
emerging markets caused a "flight to quality" as investors looked for a
relatively safe place to invest. Following the U.S. Federal Reserve's short-term
interest rate cut in mid-October, both small and large cap stocks rallied, with
small-cap stocks significantly outperforming their larger counterparts.
In the past six months, management maintained its discipline of investing in
growing and profitable companies that trade at reasonable valuations. Throughout
the fiscal period, the Fund was overweight in consumer companies, such as
retailers, restaurants and food companies. While consumer stocks provided strong
returns in 1997 and early 1998, their recent performance has been mixed. For
example, bread producer EARTHGRAINS performed well over the fiscal period as it
benefited from investor interest in smaller food retailers, whereas holdings in
more economically sensitive industries, such as lodging, textiles and furniture
detracted from performance. Energy stocks also had a negative impact on returns
as declining oil prices caused service companies such as WEATHERFORD
INTERNATIONAL, COOPER CAMERON, and BJ SERVICES to underperform. In part, this
was offset by strong stock selection in the healthcare sector, where emphasis on
companies with niche businesses, such as EXPRESS SCRIPTS, PSS WORLD MEDICAL, and
HAEMONETICS, contributed positively to performance.
Looking forward, management will continue to search for companies that can grow
their earnings independently of the economic cycle. We believe that many smaller
companies offer more attractive investment opportunities than large companies
based on valuation and growth rates. Furthermore, smaller companies in the U.S.
tend to have little overseas exposure so are less likely to be affected by
turmoil in other parts of the world. With the recent series of interest rate
cuts, we are hopeful that the U.S. will avoid recession in 1999 but, given the
economic outlook and the potential impact of Year 2000 problems, the
macro-economic outlook is particularly murky. Nonetheless, the United States
continues to have an entrepreneurial economy and thus a continually growing
supply of attractive investment opportunities. Going forward, we will remain
focused on individual stock selection, concentrating on underfollowed companies
whose growth prospects are not appreciated by the market and with the potential
to offer superior earnings growth.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
SMALL CAP OPPORTUNITIES 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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
----------------------------------------------------------
RUSSELL LIPPER
A SHARES* B SHARES** I SHARES INDEX AVERAGE+
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR (15.08%) (13.46%) (10.18%) (6.34%) (6.64%)
FIVE YEAR 16.45% 16.80% 17.78% 10.83% 12.87%
SINCE INCEPTION 16.89% 17.17% 18.14% 11.31% 13.31%
INCEPTION DATE 8/1/93 8/1/93 8/1/93 7/31/93 7/31/93
VALUE NOVEMBER 30,
1998 $22,949 $23,343 $24,284 $17,714 $19,480
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
I SHARES LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
07/31/93 $10,000.00 $10,000.00 $10,000.00
08/31/93 $10,350.00 $10,411.49 $10,481.00
09/30/93 $10,820.00 $10,697.37 $10,809.06
10/31/93 $10,990.00 $10,960.83 $10,984.16
11/30/93 $10,710.00 $10,590.36 $10,631.57
12/31/93 $11,202.29 $10,936.66 $11,075.97
01/31/94 $11,655.62 $11,271.32 $11,353.98
02/28/94 $11,806.73 $11,229.62 $11,352.84
03/31/94 $11,222.44 $10,618.73 $10,762.49
04/30/94 $11,383.63 $10,681.38 $10,771.10
05/31/94 $11,343.33 $10,543.59 $10,581.53
06/30/94 $11,141.85 $10,164.02 $10,179.43
07/31/94 $11,272.81 $10,322.58 $10,352.48
08/31/94 $11,917.55 $10,883.10 $10,973.63
09/30/94 $11,665.70 $10,833.03 $11,025.21
10/31/94 $11,897.40 $10,787.53 $11,153.10
11/30/94 $11,383.63 $10,332.30 $10,750.48
12/31/94 $11,700.60 $10,590.61 $10,979.46
01/31/95 $11,752.83 $10,448.59 $10,865.27
02/28/95 $12,379.65 $10,869.40 $11,307.49
03/31/95 $12,755.74 $11,047.34 $11,617.32
04/30/95 $13,090.05 $11,276.11 $11,775.31
05/31/95 $13,382.56 $11,461.01 $11,962.54
06/30/95 $13,957.14 $12,044.53 $12,656.37
07/31/95 $15,116.76 $12,737.39 $13,585.34
08/31/95 $15,680.89 $12,992.43 $13,816.29
09/30/95 $16,224.14 $13,225.15 $14,139.60
10/31/95 $15,816.70 $12,634.91 $13,670.16
11/30/95 $16,683.80 $13,179.25 $14,219.70
12/31/95 $17,443.53 $13,515.75 $14,468.55
01/31/96 $17,360.41 $13,500.30 $14,415.01
02/29/96 $17,835.38 $13,926.98 $15,008.91
03/31/96 $18,785.34 $14,203.21 $15,417.15
04/30/96 $19,972.78 $14,966.40 $16,573.44
05/31/96 $21,160.22 $15,567.42 $17,267.87
06/30/96 $20,459.63 $14,932.74 $16,615.14
07/31/96 $18,915.95 $13,629.56 $15,212.82
08/31/96 $19,497.80 $14,421.03 $16,127.11
09/30/96 $20,614.00 $14,984.07 $16,946.37
10/31/96 $20,471.50 $14,750.92 $16,626.09
11/30/96 $21,148.35 $15,356.07 $17,119.88
12/31/96 $21,390.80 $15,750.56 $17,368.12
01/31/97 $21,830.50 $16,062.28 $17,804.06
02/28/97 $21,830.50 $15,673.41 $17,091.90
03/31/97 $21,022.41 $14,938.48 $16,232.17
04/30/97 $21,093.71 $14,975.29 $16,125.04
05/31/97 $23,577.42 $16,645.33 $18,053.60
06/30/97 $24,944.05 $17,352.58 $19,010.44
07/31/97 $26,144.32 $18,162.21 $20,206.19
08/31/97 $26,714.74 $18,572.06 $20,580.01
09/30/97 $28,544.84 $19,927.86 $22,127.62
10/31/97 $27,237.62 $19,042.07 $21,171.71
11/30/97 $27,035.60 $18,912.43 $20,866.84
12/31/97 $27,255.62 $19,251.91 $21,042.12
01/31/98 $26,695.40 $18,958.70 $20,697.03
02/28/98 $28,497.83 $20,380.28 $22,307.26
03/31/98 $30,263.72 $21,236.66 $23,355.70
04/30/98 $30,300.26 $21,353.31 $23,544.88
05/31/98 $28,753.58 $20,207.71 $22,219.30
06/30/98 $28,790.11 $20,265.54 $22,390.39
07/31/98 $26,805.01 $18,610.66 $20,782.76
08/31/98 $21,543.87 $15,002.05 $16,615.82
09/30/98 $22,091.91 $16,162.82 $17,591.17
10/31/98 $22,907.87 $16,825.85 $18,296.57
11/30/98 $24,284.05 $17,714.24 $19,480.36
</TABLE>
* 10/9/96 was the inception date of Class A shares of the Fund. Returns prior to
that date are for Class I shares.
** 11/8/96 was the inception date of Class B shares of the Fund. Returns prior
to that date are for Class I shares, adjusted for Class B share expenses.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. Although gathered from reliable sources, data
accuracy and completeness cannot be guaranteed.
THE FUND HAS ASSUMED THE PERFORMANCE HISTORY OF THE CORE PORTFOLIO IN WHICH IT
INVESTS.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF THE OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES IN SALES
CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT CLASSES.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.5% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 4.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES.
INVESTMENTS IN SMALL COMPANIES GENERALLY CARRY GREATER RISK THAN IS CUSTOMARILY
ASSOCIATED WITH LARGER COMPANIES SUCH AS NARROWER MARKETS,
LIMITED FINANCIAL RESOURCES AND LESS LIQUID STOCKS.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
17
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
For the semi-annual period ending November 30, 1998, the International Fund fell
6.60%, underperforming the Lipper International universe average which fell
5.96%. Country allocation added value to the Fund over the past six months. For
the period, country allocation and stock selection in Japan added value, but
security selection in the U.K. and Continental Europe, as well as currency
management detracted from performance. The Fund was particularly hurt at the end
of the period by management's overall defensive position both in country and
stock selection; this posture had helped us earlier in the six months.
In the midst of a difficult economic environment, management avoided investment
banks and emphasized quality companies with earnings visibility. However, stock
selection in Continental Europe detracted from performance, in part due to an
underweighting of cyclical companies and an allocation to small capitalization
securities. In the U.K., stock selection also failed to match the performance of
the British market, as the strength of the U.K. currency hurt the profitability
of the industrial companies in the Fund. Currency hedging added value at the
beginning of the six months, but these gains were eroded during the sudden yen
surge against the U.S. dollar in October.
The period ended on a positive note led by an interest rate cut by the U.S.
Federal Reserve Bank in October. The cut stopped a developing credit contraction
and led to upswings in most equity markets world wide. The U.K. central bank now
has the largest scope for interest rate reductions among developed economies and
the Fund has moved to an overweight position there. After being particularly
hard hit in the summer, Continental European markets now offer much more
reasonable value and the Fund has moved to an overweight position. As the
Japanese government becomes more active about sorting out the nation's banking
problems and market sentiment about Japan appears excessively pessimistic,
management has reduced the underweight position it has held throughout the last
six months. The Fund's only other exposure in the developed Asian region is
Singapore, the one market which has not been tainted by government intervention
(Hong Kong) or by capital controls (Malaysia).
Management expects the recent volatility to continue through the first half of
1999 as the effects of the emerging market crisis continue to be felt in
developed economies. Global growth estimates are also being reduced, despite the
recent rate cuts. This reflects the domestic demand collapse in Asia and export
slowdown in the western economies. If the rate cuts become aggressive and there
is talk of fiscal stimulus, particularly in Europe, these moves could undermine
the bond markets and fuel inflation concerns.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
NOVEMBER 30, 1998. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS
OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR ALL
OTHER CLASSES WOULD BE LOWER.
- --------------------------------------------------------------------------------
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 securities market index and a peer based average.
The Fund's total return includes operating expenses and sales charges (if
applicable) that reduce returns, while the total return of the Index does not.
The Lipper Average does not include sales charges but does include management
fees and expenses. The Lipper Average is 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 AS OF NOVEMBER 30, 1998
-------------------------------------------------------------
LIPPER
A SHARES* B SHARES** I SHARES*** INDEX AVERAGE+
----------- ----------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 4.17% 6.44% 10.22% 16.45% 10.38%
FIVE YEAR 8.24% 8.34% 9.30% 9.82% 8.99%
TEN YEAR 7.72% 7.44% 8.25% 5.17% 8.46%
VALUE NOVEMBER 30,
1998 $ 21,052 $ 20,509 $ 22,101 $ 16,552 $ 22,529
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
I SHARES LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
11/30/88 $10,000.00 $10,000.00 $10,000.00
12/31/88 $10,006.69 $10,056.00 $10,078.00
01/31/89 $10,179.58 $10,232.99 $10,378.32
02/28/89 $10,017.19 $10,285.17 $10,361.72
03/31/89 $9,993.31 $10,083.58 $10,354.47
04/30/89 $10,212.05 $10,177.36 $10,652.67
05/31/89 $10,015.28 $9,623.71 $10,383.16
06/30/89 $10,043.94 $9,462.03 $10,347.86
07/31/89 $11,030.66 $10,649.52 $11,344.36
08/31/89 $11,273.28 $10,171.36 $11,270.62
09/30/89 $11,852.13 $10,634.15 $11,728.21
10/31/89 $11,384.09 $10,207.72 $11,173.46
11/30/89 $11,765.21 $10,720.15 $11,602.52
12/31/89 $12,264.78 $11,115.73 $12,244.14
01/31/90 $12,214.16 $10,702.22 $12,073.95
02/28/90 $11,647.72 $9,956.28 $11,691.21
03/31/90 $11,378.36 $8,918.83 $11,625.73
04/30/90 $11,343.01 $8,848.37 $11,436.24
05/31/90 $12,352.66 $9,858.24 $12,298.53
06/30/90 $12,673.61 $9,771.49 $12,554.34
07/31/90 $13,012.70 $9,908.29 $13,041.44
08/31/90 $11,727.00 $8,946.19 $11,673.40
09/30/90 $10,177.67 $7,699.09 $10,363.64
10/31/90 $11,392.68 $8,897.84 $11,207.24
11/30/90 $10,865.41 $8,372.87 $10,924.82
12/31/90 $10,882.61 $8,508.51 $10,884.40
01/31/91 $11,382.18 $8,783.33 $11,176.10
02/28/91 $12,063.23 $9,724.91 $12,054.54
03/31/91 $11,347.79 $9,141.41 $11,679.65
04/30/91 $11,451.91 $9,231.00 $11,806.95
05/31/91 $11,420.38 $9,327.00 $11,921.48
06/30/91 $10,828.16 $8,642.40 $11,309.91
07/31/91 $11,317.22 $9,066.74 $11,816.59
08/31/91 $11,036.39 $8,882.69 $11,757.51
09/30/91 $11,544.56 $9,382.78 $12,130.22
10/31/91 $11,461.46 $9,516.02 $12,186.02
11/30/91 $10,914.13 $9,071.62 $11,761.95
12/31/91 $11,396.50 $9,540.62 $12,340.64
01/31/92 $11,417.52 $9,337.41 $12,425.79
02/29/92 $11,271.37 $9,003.13 $12,427.03
03/31/92 $10,916.04 $8,408.92 $11,998.30
04/30/92 $11,263.73 $8,448.44 $12,295.85
05/31/92 $11,890.34 $9,014.49 $12,897.12
06/30/92 $11,598.05 $8,587.20 $12,541.16
07/31/92 $11,262.78 $8,367.37 $12,113.51
08/31/92 $11,371.67 $8,892.00 $12,229.80
09/30/92 $11,178.72 $8,715.94 $11,959.52
10/31/92 $10,879.74 $8,258.35 $11,582.79
11/30/92 $10,809.06 $8,335.98 $11,647.66
12/31/92 $10,935.14 $8,379.33 $11,803.74
01/31/93 $10,914.13 $8,378.49 $11,845.05
02/28/93 $11,150.06 $8,631.52 $12,118.67
03/31/93 $11,769.99 $9,384.19 $12,805.80
04/30/93 $12,546.57 $10,275.69 $13,439.69
05/31/93 $12,661.19 $10,492.51 $13,725.95
06/30/93 $12,624.89 $10,328.82 $13,444.57
07/31/93 $13,061.42 $10,690.33 $13,865.38
08/31/93 $13,902.00 $11,267.61 $14,704.24
09/30/93 $14,045.28 $11,014.09 $14,613.07
10/31/93 $14,701.50 $11,353.32 $15,241.44
11/30/93 $14,163.72 $10,361.04 $14,645.50
12/31/93 $15,882.13 $11,109.11 $16,003.13
01/31/94 $16,770.47 $12,047.83 $16,979.32
02/28/94 $16,406.53 $12,014.10 $16,609.17
03/31/94 $15,673.89 $11,496.29 $15,876.71
04/30/94 $16,151.49 $11,983.73 $16,275.22
05/31/94 $16,134.30 $11,915.42 $16,223.13
06/30/94 $15,958.54 $12,083.43 $16,054.41
07/31/94 $16,218.36 $12,199.43 $16,492.70
08/31/94 $16,882.22 $12,487.34 $16,972.64
09/30/94 $16,490.59 $12,093.99 $16,555.11
10/31/94 $16,770.47 $12,496.72 $16,872.97
11/30/94 $16,133.35 $11,895.63 $16,051.25
12/31/94 $15,999.62 $11,970.57 $15,897.16
01/31/95 $15,092.18 $11,510.90 $15,115.02
02/28/95 $15,044.42 $11,477.52 $15,136.18
03/31/95 $15,894.55 $12,193.71 $15,637.19
04/30/95 $16,372.15 $12,652.20 $16,139.14
05/31/95 $16,696.91 $12,500.37 $16,282.78
06/30/95 $16,763.78 $12,281.61 $16,289.30
07/31/95 $17,613.91 $13,046.76 $17,159.14
08/31/95 $17,059.89 $12,548.37 $16,839.98
09/30/95 $17,556.60 $12,793.07 $17,090.90
10/31/95 $17,203.17 $12,447.65 $16,754.21
11/30/95 $17,317.80 $12,796.19 $16,935.16
12/31/95 $17,886.63 $13,311.87 $17,438.13
01/31/96 $18,256.23 $13,366.52 $17,832.23
02/29/96 $18,421.58 $13,411.71 $17,908.91
03/31/96 $18,762.00 $13,696.52 $18,216.94
04/30/96 $19,258.04 $14,094.72 $18,792.60
05/31/96 $19,296.95 $13,835.38 $18,751.25
06/30/96 $19,433.11 $13,913.24 $18,878.76
07/31/96 $18,820.36 $13,506.56 $18,184.02
08/31/96 $18,937.07 $13,536.15 $18,396.78
09/30/96 $19,326.12 $13,895.75 $18,795.99
10/31/96 $18,898.17 $13,724.84 $18,681.33
11/30/96 $19,627.64 $14,270.91 $19,490.23
12/31/96 $19,608.82 $14,087.38 $19,560.40
01/31/97 $19,382.86 $13,594.18 $19,472.38
02/28/97 $19,785.65 $13,816.67 $19,741.10
03/31/97 $19,893.72 $13,866.70 $19,790.45
04/30/97 $20,060.72 $13,940.27 $19,845.86
05/31/97 $21,278.91 $14,847.42 $21,016.77
06/30/97 $22,261.31 $15,666.21 $21,998.25
07/31/97 $22,703.40 $15,919.66 $22,623.00
08/31/97 $20,728.76 $14,730.78 $20,985.10
09/30/97 $21,858.53 $15,555.98 $22,292.47
10/31/97 $20,424.21 $14,360.35 $20,593.78
11/30/97 $20,050.90 $14,214.02 $20,410.50
12/31/97 $20,209.03 $14,337.99 $20,579.90
01/31/98 $20,923.34 $14,993.73 $21,065.59
02/28/98 $22,044.41 $15,955.81 $22,462.24
03/31/98 $22,937.30 $16,447.13 $23,607.81
04/30/98 $23,482.95 $16,577.31 $23,931.24
05/31/98 $23,661.53 $16,496.84 $23,957.56
06/30/98 $23,522.64 $16,621.72 $23,775.49
07/31/98 $23,641.69 $16,790.23 $24,122.61
08/31/98 $20,873.74 $14,709.92 $20,680.31
09/30/98 $20,258.63 $14,258.92 $19,939.96
10/31/98 $21,209.75 $15,745.26 $21,421.50
11/30/98 $22,101.00 $16,551.91 $22,528.99
</TABLE>
* 4/12/95 was the inception date of Class A shares of the Fund. Returns prior
to that date are for Class I shares.
** 5/12/95 was the inception date of Class B shares of the Fund. Returns prior
to that date are for Class I shares, adjusted for Class B share expenses.
Performance shown for Class B shares for the period prior to November 11, 1994
reflects performance of the shares of the predecessor collective investment fund
adjusted to reflect Class B share expenses (before waivers and reimbursements).
*** Prior to November 11, 1994, Norwest Bank Minnesota, N.A. managed a
collective investment fund with investment objectives and polices that were, in
all material respects, equivalent to the Fund. The quoted performance data
includes the performance of the predecessor collective investment fund for
periods before it became a mutual fund on November 11, 1994. Performance
reflects the historic performance of the mutual fund in which the collective
investment fund invested, which was managed by Schroder Capital Management
International Inc. The collective investment fund was not registered under the
Investment Company Act of 1940 (the "1940 Act"), nor subject to certain
investment limitations, diversification requirements and other restrictions
imposed by the 1940 Act and the Internal Revenue Code, which, if applicable, may
have adversely affected the performance results.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. 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 THE OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES IN SALES
CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT CLASSES.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.5% SALES CHARGE FOR CLASS A
SHARES AND THE MAXIMUM 4.0% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES.
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.
THE FUND IS PROFESSIONALLY MANAGED WHILE THE INDEX IS UNMANAGED AND IS NOT
AVAILABLE FOR INVESTMENT.
[LOGO]
18
<PAGE>
(This page has been left blank intentionally.)
[LOGO]
19
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE
STABLE GOVERNMENT TOTAL RETURN TAX-FREE
INCOME INCOME INCOME BOND INCOME
FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments (Note 2)
Investments at cost......... $ 179,452,228 $433,155,536 $ 349,299,631 $107,766,210 $ 361,588,954
Net unrealized appreciation
(depreciation).......... 906,970 13,891,193 9,662,845 896,516 20,610,702
------------- ------------- ------------- ------------- -------------
TOTAL INVESTMENTS AT VALUE... 180,359,198 447,046,729 358,962,476 108,662,726 382,199,656
Collateral for securities
loaned (Notes 2 and 5)... - 46,433,035 50,931,797 - -
Cash......................... - - 18 - -
Receivable for dividends,
interest and other
receivables.............. - 4,659,021 4,360,240 - 6,420,084
Receivable for investments
sold..................... - - 36,342 - 2,284,593
Receivable for Fund shares
issued................... 682,404 268,818 494,466 57,946 501,637
Organization costs, net of
amortization (Note 2).... 11,357 11,357 - 545 -
------------- ------------- ------------- ------------- -------------
TOTAL ASSETS.................. 181,052,959 498,418,960 414,785,339 108,721,217 391,405,970
------------- ------------- ------------- ------------- -------------
LIABILITIES
Payable for investments
purchased................ - - 3,018,247 - 21,122,801
Payable for securities loaned
(Notes 2 and 5).......... - 46,433,035 50,931,797 - -
Payable for daily variation
margin on financial
futures and options
contracts (Note 2)....... - - - - -
Payable for Fund shares
redeemed................. 428,075 265,342 496,347 36,030 156,470
Payable to adviser and
affiliates (Note 3)...... 27,765 213,597 174,481 6,074 154,690
Payable to other related
parties (Note 3)......... - 33,594 36,784 4,961 23,433
Accrued expenses and other
liabilities.............. 8,895 44,502 50,640 12,453 62,659
Dividends payable............ 1,053 16,257 1,503,079 413,738 1,091,209
------------- ------------- ------------- ------------- -------------
TOTAL LIABILITIES............. 465,788 47,006,327 56,211,375 473,256 22,611,262
------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 180,587,171 $451,412,633 $ 358,573,964 $108,247,961 $ 368,794,708
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
COMPONENTS OF NET ASSETS
Paid in capital.............. $ 186,611,282 $455,430,379 $ 357,291,550 $104,965,813 $ 349,517,495
Undistributed (distributions
in excess of) net
investment income........ 154,898 459,775 14,155 (15,111) (509,881)
Accumulated net realized gain
(loss) from investments
sold..................... (7,085,979) (18,368,714) (7,765,074) 2,400,743 (823,608)
Net unrealized appreciation
(depreciation) from
investments.............. 906,970 13,891,193 9,033,333 896,516 20,610,702
------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 180,587,171 $451,412,633 $ 358,573,964 $108,247,961 $ 368,794,708
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
NET ASSETS BY SHARE CLASS
A Shares..................... $ 9,785,454 $ 17,064,962 $ 10,298,744 $ 1,551,695 $ 48,876,250
B Shares..................... 2,073,903 9,011,499 6,588,372 3,320,169 13,048,093
C Shares..................... - - - - -
I Shares..................... 168,727,814 425,336,172 341,686,848 103,376,097 306,870,365
------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 180,587,171 $451,412,633 $ 358,573,964 $108,247,961 $ 368,794,708
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST
A Shares..................... 945,311 1,475,293 1,027,900 158,911 4,565,280
B Shares..................... 200,559 779,618 658,616 339,417 1,218,513
C Shares..................... - - - - -
I Shares..................... 16,308,350 36,756,976 34,133,994 10,572,792 28,646,014
NET ASSET VALUE PER SHARE (Net
Assets Divided by Shares of
Beneficial Interest)
A Shares..................... $ 10.35 $ 11.57 $ 10.02 $ 9.76 $ 10.71
B Shares..................... $ 10.34 $ 11.56 $ 10.00 $ 9.78 $ 10.71
C Shares..................... $ - $ - $ - $ - $ -
I Shares..................... $ 10.35 $ 11.57 $ 10.01 $ 9.78 $ 10.71
OFFERING PRICE PER SHARE
(NAV/(1-Maximum Sales
Load)
A Shares..................... $ 10.51 $ 12.05 $ 10.44 $ 10.17 $ 11.16
B Shares..................... $ 10.34 $ 11.56 $ 10.00 $ 9.78 $ 10.71
C Shares..................... $ - $ - $ - $ - $ -
I Shares..................... $ 10.35 $ 11.57 $ 10.01 $ 9.78 $ 10.71
MAXIMUM SALES LOAD
A Shares..................... 1.50% 4.00% 4.00% 4.00% 4.00%
B Shares..................... N/A N/A N/A N/A N/A
C Shares..................... N/A N/A N/A N/A N/A
I Shares..................... N/A N/A N/A N/A N/A
(a) Actual net assets and
number of C Shares at
November 30, 1998, were
$23,573.96 and 784.868.
(b) Actual net assets and
number of C Shares at
November 30, 1998, were
$12,001.50 and 280.543.
(c) Actual net assets and
number of C Shares at
November 30, 1998, were
$51,703.52 and 1,164.126.
</TABLE>
See Notes to Financial Statements
[LOGO]
20
<PAGE>
NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLORADO MINNESOTA GROWTH INCOME VALUGROWTH DIVERSIFIED
TAX-FREE TAX-FREE BALANCED EQUITY STOCK EQUITY
FUND FUND FUND FUND FUND FUND
------------- ------------- ------------- --------------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments (Note 2)
Investments at cost......... $ 89,506,434 $ 74,626,030 $ 544,701,195 $ 1,142,125,598 $311,672,405 $ 992,723,406
Net unrealized appreciation
(depreciation).......... 4,645,103 3,851,443 198,958,439 362,143,178 140,763,053 647,051,921
------------- ------------- ------------- --------------- ------------- ---------------
TOTAL INVESTMENTS AT VALUE... 94,151,537 78,477,473 743,659,634 1,504,268,776 452,435,458 1,639,775,327
Collateral for securities
loaned (Notes 2 and 5)... - - - - 73,133,771 -
Cash......................... - - - - 1,927,142 -
Receivable for dividends,
interest and other
receivables.............. 1,554,042 1,135,470 553 13,475 581,527 -
Receivable for investments
sold..................... 1,664,663 - - - 14,022,811 -
Receivable for Fund shares
issued................... 122,756 160,915 761,276 3,382,414 63,699 1,405,436
Organization costs, net of
amortization (Note 2).... - - 11,357 11,357 - 11,357
------------- ------------- ------------- --------------- ------------- ---------------
TOTAL ASSETS.................. 97,492,998 79,773,858 744,432,820 1,507,676,022 542,164,408 1,641,192,120
------------- ------------- ------------- --------------- ------------- ---------------
LIABILITIES
Payable for investments
purchased................ 7,802,147 2,275,560 - - - -
Payable for securities loaned
(Notes 2 and 5).......... - - - - 73,133,771 -
Payable for daily variation
margin on financial
futures and options
contracts (Note 2)....... - - 3,588,694 - 3,660,000 -
Payable for Fund shares
redeemed................. 21,241 63,083 629,394 1,672,575 5,949,734 1,620,927
Payable to adviser and
affiliates (Note 3)...... 32,266 26,745 227,564 305,380 373,063 552,639
Payable to other related
parties (Note 3)......... 12,054 13,882 14,148 76,511 5,168 37,818
Accrued expenses and other
liabilities.............. 12,676 45,516 3,029 72,171 24,945 124,560
Dividends payable............ 178,368 120,788 - 8,922 96,138 1,501
------------- ------------- ------------- --------------- ------------- ---------------
TOTAL LIABILITIES............. 8,058,752 2,545,574 4,462,829 2,135,559 83,242,819 2,337,445
------------- ------------- ------------- --------------- ------------- ---------------
NET ASSETS.................... $ 89,434,246 $ 77,228,284 $ 739,969,991 $ 1,505,540,463 $458,921,589 $ 1,638,854,675
------------- ------------- ------------- --------------- ------------- ---------------
------------- ------------- ------------- --------------- ------------- ---------------
COMPONENTS OF NET ASSETS
Paid in capital.............. $ 84,589,628 $ 73,332,645 $ 493,811,920 $ 1,134,735,612 $380,771,805 $ 946,550,911
Undistributed (distributions
in excess of) net
investment income........ - (43,062) 15,075,693 3,361,806 (115,164) 10,488,541
Accumulated net realized gain
(loss) from investments
sold..................... 199,515 87,258 15,396,508 5,299,867 75,316,866 34,763,302
Net unrealized appreciation
(depreciation) from
investments.............. 4,645,103 3,851,443 215,685,870 362,143,178 2,948,082 647,051,921
------------- ------------- ------------- --------------- ------------- ---------------
NET ASSETS.................... $ 89,434,246 $ 77,228,284 $ 739,969,991 $ 1,505,540,463 $458,921,589 $ 1,638,854,675
------------- ------------- ------------- --------------- ------------- ---------------
------------- ------------- ------------- --------------- ------------- ---------------
NET ASSETS BY SHARE CLASS
A Shares..................... $ 39,372,700 $ 35,727,065 $ 959,207 $ 86,900,348 $ 21,495,822 $ 59,285,595
B Shares..................... 9,865,796 19,510,545 1,127,373 82,770,746 8,557,355 94,334,979
C Shares..................... - - 23,574(a) 12,002(b) - 51,704(c)
I Shares..................... 40,195,750 21,990,674 737,859,837 1,335,857,367 428,868,412 1,485,182,397
------------- ------------- ------------- --------------- ------------- ---------------
NET ASSETS.................... $ 89,434,246 $ 77,228,284 $ 739,969,991 $ 1,505,540,463 $458,921,589 $ 1,638,854,675
------------- ------------- ------------- --------------- ------------- ---------------
------------- ------------- ------------- --------------- ------------- ---------------
SHARES OF BENEFICIAL INTEREST
A Shares..................... 3,635,385 3,195,929 30,167 2,086,097 843,935 1,339,997
B Shares..................... 909,848 1,745,619 37,603 1,990,547 344,994 2,158,625
C Shares..................... - - 785(a) 281(b) - 1,164(c)
I Shares..................... 3,710,728 1,967,051 24,551,644 32,071,380 16,859,467 33,570,908
NET ASSET VALUE PER SHARE (Net
Assets Divided by Shares of
Beneficial Interest)
A Shares..................... $ 10.83 $ 11.18 $ 31.80 $ 41.66 $ 25.47 $ 44.24
B Shares..................... $ 10.84 $ 11.18 $ 29.98 $ 41.58 $ 24.80 $ 43.70
C Shares..................... $ - $ - $ 30.04 $ 42.78 $ - $ 44.41
I Shares..................... $ 10.83 $ 11.18 $ 30.05 $ 41.65 $ 25.44 $ 44.24
OFFERING PRICE PER SHARE
(NAV/(1-Maximum Sales
Load)
A Shares..................... $ 11.28 $ 11.65 $ 33.65 $ 44.08 $ 26.95 $ 46.81
B Shares..................... $ 10.84 $ 11.18 $ 29.98 $ 41.58 $ 24.80 $ 43.70
C Shares..................... $ - $ - $ 30.04 $ 42.78 $ - $ 44.41
I Shares..................... $ 10.83 $ 11.18 $ 30.05 $ 41.65 $ 25.44 $ 44.24
MAXIMUM SALES LOAD
A Shares..................... 4.00% 4.00% 5.50% 5.50% 5.50% 5.50%
B Shares..................... N/A N/A N/A N/A N/A N/A
C Shares..................... N/A N/A N/A N/A N/A N/A
I Shares..................... N/A N/A N/A N/A N/A N/A
</TABLE>
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21
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL SMALL
GROWTH COMPANY DIVERSIFIED COMPANY CAP
EQUITY GROWTH SMALL CAP STOCK OPPORTUNITIES INTERNATIONAL
FUND FUND FUND FUND FUND FUND
--------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments (Note 2)
Investments at cost......... $ 694,350,199 $ 243,034,095 $ 35,535,893 $ 70,693,745 $244,328,378 $240,213,938
Net unrealized appreciation
(depreciation)........... 265,175,622 120,928,046 993,610 (2,169,094) 11,970,879 28,059,556
--------------- ------------- ------------- ------------- ------------- -------------
TOTAL INVESTMENTS AT VALUE... 959,525,821 363,962,141 36,529,503 68,524,651 256,299,257 268,273,494
Collateral for securities
loaned (Notes 2 and 5)... - - - - - -
Cash......................... - - - - - -
Receivable for dividends,
interest and other
receivables.............. - 63,773 - 17,279 15,166 4,443
Receivable for investments
sold..................... - - - - - -
Receivable for Fund shares
issued................... 2,307,134 1,219,371 364,314 10,294 464,549 232,164
Organization costs, net of
amortization (Note 2).... 11,357 11,357 2,848 545 - 11,357
--------------- ------------- ------------- ------------- ------------- -------------
TOTAL ASSETS.................. 961,844,312 365,256,642 36,896,665 68,552,769 256,778,972 268,521,458
--------------- ------------- ------------- ------------- ------------- -------------
LIABILITIES
Payable for investments
purchased................ - - - - - -
Payable for securities loaned
(Notes 2 and 5).......... - - - - - -
Payable for daily variation
margin on financial
futures and options
contracts (Note 2)....... - - - - - -
Payable for Fund shares
redeemed................. 1,783,887 1,156,635 1,030 193,353 1,114,996 1,026,010
Payable to adviser and
affiliates (Note 3)...... 354,678 58,284 880 5,110 91,560 162,563
Payable to other related
parties (Note 3)......... 31,656 - - 985 - -
Accrued expenses and other
liabilities.............. 85,895 - 3,219 19,758 - 2
Dividends payable............ - - - 5,218 - 49
--------------- ------------- ------------- ------------- ------------- -------------
TOTAL LIABILITIES............. 2,256,116 1,214,919 5,129 224,424 1,206,556 1,188,624
--------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 959,588,196 $ 364,041,723 $ 36,891,536 $ 68,328,345 $255,572,416 $267,332,834
--------------- ------------- ------------- ------------- ------------- -------------
--------------- ------------- ------------- ------------- ------------- -------------
COMPONENTS OF NET ASSETS
Paid in capital.............. $ 640,153,305 $ 235,474,385 $ 39,724,543 $ 96,160,748 $272,408,548 $229,346,515
Undistributed (distributions
in excess of) net
investment income........ 7,008 (719,338) (109) (31,361) (550,579) 2,894,251
Accumulated net realized gain
(loss) from investments
sold..................... 54,252,261 8,358,630 (3,826,508) (25,631,948) (28,256,432) 7,032,512
Net unrealized appreciation
(depreciation) from
investments.............. 265,175,622 120,928,046 993,610 (2,169,094) 11,970,879 28,059,556
--------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 959,588,196 $ 364,041,723 $ 36,891,536 $ 68,328,345 $255,572,416 $267,332,834
--------------- ------------- ------------- ------------- ------------- -------------
--------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS BY SHARE CLASS
A Shares..................... $ 17,597,202 $ 3,638,697 $ 2,580,255 $ 5,360,629 $ 6,414,509 $ 3,635,036
B Shares..................... 17,442,864 2,678,121 186,136 4,164,305 5,012,966 1,952,556
C Shares..................... 36,399 - - - - -
I Shares..................... 924,511,731 357,724,905 34,125,145 58,803,411 244,144,941 261,745,242
--------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 959,588,196 $ 364,041,723 $ 36,891,536 $ 68,328,345 $255,572,416 $267,332,834
--------------- ------------- ------------- ------------- ------------- -------------
--------------- ------------- ------------- ------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST
A Shares..................... 502,730 73,236 278,396 578,171 321,773 164,770
B Shares..................... 507,274 57,209 21,283 468,049 255,456 89,370
C Shares..................... 1,033 - - - - -
I Shares..................... 26,413,204 7,646,003 3,900,402 6,379,424 12,243,081 11,857,108
NET ASSET VALUE PER SHARE (Net
Assets Divided by Shares of
Beneficial Interest)
A Shares..................... $ 35.00 $ 49.68 $ 9.27 $ 9.27 $ 19.94 $ 22.06
B Shares..................... $ 34.39 $ 46.81 $ 8.75 $ 8.90 $ 19.62 $ 21.85
C Shares..................... $ 35.24 $ - $ - $ - $ - $ -
I Shares..................... $ 35.00 $ 46.79 $ 8.75 $ 9.22 $ 19.94 $ 22.07
OFFERING PRICE PER SHARE
(NAV/(1-Maximum Sales
Load)
A Shares..................... $ 37.04 $ 52.57 $ 9.81 $ 9.81 $ 21.10 $ 23.34
B Shares..................... $ 34.39 $ 46.81 $ 8.75 $ 8.90 $ 19.62 $ 21.85
C Shares..................... $ 35.24 $ - $ - $ - $ - $ -
I Shares..................... $ 35.00 $ 46.79 $ 8.75 $ 9.22 $ 19.94 $ 22.07
MAXIMUM SALES LOAD
A Shares..................... 5.50% 5.50% 5.50% 5.50% 5.50% 5.50%
B Shares..................... N/A N/A N/A N/A N/A N/A
C Shares..................... N/A N/A N/A N/A N/A N/A
I Shares..................... N/A N/A N/A N/A N/A N/A
</TABLE>
See Notes to Financial Statements
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22
<PAGE>
(This page has been left blank intentionally.)
[LOGO]
23
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE
STABLE GOVERNMENT TOTAL RETURN TAX-FREE
INCOME INCOME INCOME BOND INCOME
FUND FUND FUND FUND FUND
----------- ------------ ------------ -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income.............. $ 4,932,795 $14,144,199 $ 10,982,212 $ 3,706,049 $ 9,587,496
Dividend income.............. - - - - -
Securities lending income
(Notes 2 and 5).......... 14,557 48,117 42,562 4,631 -
Net expenses from Core
Portfolios (Note 1)...... (304,758) - - (316,101) -
----------- ------------ ------------ -------------- -------------
TOTAL INVESTMENT INCOME...... 4,642,594 14,192,316 11,024,774 3,394,579 9,587,496
----------- ------------ ------------ -------------- -------------
EXPENSES
Advisory (Note 3)............ - 725,492 817,332 - 878,913
Management and Administration
(Note 3)................. 42,136 219,846 163,466 28,340 175,782
Transfer agent (Note 3)
A Shares.................... 11,029 20,170 10,967 3,246 51,971
B Shares.................... 2,236 10,812 7,121 3,662 14,974
C Shares.................... - - - - -
I Shares.................... 197,416 518,632 390,578 134,787 372,512
Custody (Note 3)............. - - 23,867 - 25,099
Accounting (Note 3).......... 18,000 41,000 40,000 18,000 40,000
Legal (Note 3)............... 1,609 4,277 3,075 1,141 3,340
Registration................. 14,011 15,370 15,539 10,274 23,314
Audit........................ 2,950 7,100 6,925 3,275 6,850
Trustees..................... 1,239 3,307 2,407 877 2,620
Distribution fees (Note 3)
A Shares.................... - - - - -
B Shares.................... 8,944 43,247 28,484 14,647 59,895
C Shares.................... - - - - -
Amortization of organization
costs (Note 2)........... 5,960 5,960 - 3,269 -
Miscellaneous................ 2,825 8,423 7,446 1,772 11,768
----------- ------------ ------------ -------------- -------------
TOTAL EXPENSES............... 308,355 1,623,636 1,517,207 223,290 1,667,038
Fees waived and expenses
reimbursed (Note 3)..... (58,825) (96,624) (269,933) (102,702) (567,578)
----------- ------------ ------------ -------------- -------------
NET EXPENSES................. 249,530 1,527,012 1,247,274 120,588 1,099,460
----------- ------------ ------------ -------------- -------------
NET INVESTMENT INCOME
(LOSS)................... 4,393,064 12,665,304 9,777,500 3,273,991 8,488,036
----------- ------------ ------------ -------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss)
on Securities......... - 8,411,614 4,688,994 - 3,032,246
Investments in Core
Portfolios (Note
1).................. (31,731) - - (48,574) -
Foreign currency
transactions from
investments in Core
Portfolios.......... - - - - -
Financial futures
transactions........ - - - - -
Financial futures
transactions from
investments in Core
Portfolios.......... - - - - -
----------- ------------ ------------ -------------- -------------
Net Realized Gain (Loss)
on Investments........ (31,731) 8,411,614 4,688,994 (48,574) 3,032,246
----------- ------------ ------------ -------------- -------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Securities............ - 4,840,002 3,059,969 - 2,415,004
Investments in Core
Portfolios (Note
1).................. 752,535 - - 1,606,590 -
Foreign currency
transactions from
investments in Core
Portfolios.......... - - - - -
Financial futures
transactions from
investments in Core
Portfolios.......... - - - - -
----------- ------------ ------------ -------------- -------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments........... 752,535 4,840,002 3,059,969 1,606,590 2,415,004
----------- ------------ ------------ -------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS.............. 720,804 13,251,616 7,748,963 1,558,016 5,447,250
----------- ------------ ------------ -------------- -------------
INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS............... $ 5,113,868 $25,916,920 $ 17,526,463 $ 4,832,007 $ 13,935,286
----------- ------------ ------------ -------------- -------------
----------- ------------ ------------ -------------- -------------
</TABLE>
See Notes to Financial Statements
[LOGO]
24
<PAGE>
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLORADO MINNESOTA GROWTH
TAX-FREE TAX-FREE BALANCED
FUND FUND FUND
----------------- ----------------- -----------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income.............. $ 2,193,361 $ 1,969,891 $ 7,584,624
Dividend income.............. - - 2,891,014
Securities lending income
(Notes 2 and 5).......... - - 85,057
Net expenses from Core
Portfolios (Note 1)...... - - (1,739,114)
----------------- ----------------- -----------------
TOTAL INVESTMENT INCOME...... 2,193,361 1,969,891 8,821,581
----------------- ----------------- -----------------
EXPENSES
Advisory (Note 3)............ 206,774 187,678 844,554
Management and Administration
(Note 3)................. 41,354 37,536 168,910
Transfer agent (Note 3)
A Shares.................... 46,848 44,109 359
B Shares.................... 11,694 22,924 205
C Shares.................... - - 1
I Shares.................... 44,845 26,806 844,116
Custody (Note 3)............. 8,271 7,507 -
Accounting (Note 3).......... 30,000 30,000 12,000
Legal (Note 3)............... 2,197 1,367 8,248
Registration................. 1,164 1,286 11,561
Audit........................ 6,538 6,700 2,950
Trustees..................... 608 562 5,102
Distribution fees (Note 3)
A Shares.................... - - 92
B Shares.................... 46,775 91,695 818
C Shares.................... - - 4
Amortization of organization
costs (Note 2)........... - - 5,960
Miscellaneous................ 6,079 7,560 3,062
----------------- ----------------- -----------------
TOTAL EXPENSES............... 453,147 465,730 1,907,942
Fees waived and expenses
reimbursed (Note 3)..... (169,968) (171,764) (509,388)
----------------- ----------------- -----------------
NET EXPENSES................. 283,179 293,966 1,398,554
----------------- ----------------- -----------------
NET INVESTMENT INCOME
(LOSS)................... 1,910,182 1,675,925 7,423,027
----------------- ----------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss)
on Securities......... 752,917 291,797 -
Investments in Core
Portfolios (Note
1).................. - - 5,843,944
Foreign currency
transactions from
investments in Core
Portfolios.......... - - (53,059)
Financial futures
transactions........ - - -
Financial futures
transactions from
investments in Core
Portfolios.......... - - (326,620)
----------------- ----------------- -----------------
Net Realized Gain (Loss)
on Investments........ 752,917 291,797 5,464,265
----------------- ----------------- -----------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Securities............ 308,961 600,218 7,478
Investments in Core
Portfolios (Note
1).................. - - 34,811,481
Foreign currency
transactions from
investments in Core
Portfolios.......... - - 5,142
Financial futures
transactions from
investments in Core
Portfolios.......... - - (30,557)
----------------- ----------------- -----------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments........... 308,961 600,218 34,793,544
----------------- ----------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS.............. 1,061,878 892,015 40,257,809
----------------- ----------------- -----------------
INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS............... $ 2,972,060 $ 2,567,940 $ 47,680,836
----------------- ----------------- -----------------
----------------- ----------------- -----------------
<CAPTION>
INCOME VALUGROWTH DIVERSIFIED
EQUITY STOCK EQUITY
FUND FUND FUND
----------------- ------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income.............. $ 594,842 $ 414,620 $ 1,713,910
Dividend income.............. 14,279,659 3,474,531 10,396,128
Securities lending income
(Notes 2 and 5).......... 107,336 91,450 222,954
Net expenses from Core
Portfolios (Note 1)...... (3,759,242) - (4,542,169)
----------------- ------------- ------------
TOTAL INVESTMENT INCOME...... 11,222,595 3,980,601 7,790,823
----------------- ------------- ------------
EXPENSES
Advisory (Note 3)............ - 2,144,841 2,021,469
Management and Administration
(Note 3)................. 343,824 274,300 404,294
Transfer agent (Note 3)
A Shares.................... 98,801 29,971 72,135
B Shares.................... 92,479 10,517 108,308
C Shares.................... - - 9
I Shares.................... 1,527,845 645,260 1,841,018
Custody (Note 3)............. - 34,950 -
Accounting (Note 3).......... 20,000 39,000 20,000
Legal (Note 3)............... 18,750 6,003 16,900
Registration................. 23,149 15,118 23,743
Audit........................ 2,950 6,888 2,950
Trustees..................... 10,373 4,553 12,537
Distribution fees (Note 3)
A Shares.................... - - -
B Shares.................... 369,916 42,068 433,233
C Shares.................... 1 - 26
Amortization of organization
costs (Note 2)........... 5,960 - 5,960
Miscellaneous................ 10,012 7,750 10,619
----------------- ------------- ------------
TOTAL EXPENSES............... 2,524,060 3,261,219 4,973,201
Fees waived and expenses
reimbursed (Note 3)..... (166,602) (487,077) (1,127,947)
----------------- ------------- ------------
NET EXPENSES................. 2,357,458 2,774,142 3,845,254
----------------- ------------- ------------
NET INVESTMENT INCOME
(LOSS)................... 8,865,137 1,206,459 3,945,569
----------------- ------------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss)
on Securities......... - 9,530,462 -
Investments in Core
Portfolios (Note
1).................. 4,427,930 - 13,051,524
Foreign currency
transactions from
investments in Core
Portfolios.......... - - (207,458)
Financial futures
transactions........ - 18,669 -
Financial futures
transactions from
investments in Core
Portfolios.......... - - (1,340,079)
----------------- ------------- ------------
Net Realized Gain (Loss)
on Investments........ 4,427,930 9,549,131 11,503,987
----------------- ------------- ------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Securities............ - (37,836,283) -
Investments in Core
Portfolios (Note
1).................. 21,797,589 - 20,481,010
Foreign currency
transactions from
investments in Core
Portfolios.......... - - 53,393
Financial futures
transactions from
investments in Core
Portfolios.......... - - (97,245)
----------------- ------------- ------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments........... 21,797,589 (37,836,283) 20,437,158
----------------- ------------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS.............. 26,225,519 (28,287,152) 31,941,145
----------------- ------------- ------------
INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS............... $ 35,090,656 $(27,080,693) $ 35,886,714
----------------- ------------- ------------
----------------- ------------- ------------
</TABLE>
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25
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL
GROWTH COMPANY DIVERSIFIED COMPANY SMALL CAP
EQUITY GROWTH SMALL CAP STOCK OPPORTUNITIES
FUND FUND FUND FUND FUND
---------------- ------------- ------------- ------------- -----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income.............. $ 1,697,386 $ 94,952 $ 31,661 $ 204,233 $ 381,020
Dividend income.............. 4,029,269 545,130 87,046 321,547 723,838
Securities lending income
(Notes 2 and 5).......... 162,622 39,132 2,979 10,228 -
Net expenses from Core
Portfolios (Note 1)...... (3,656,352) (994,463) (91,132) (441,144) (997,262)
---------------- ------------- ------------- ------------- -----------------
TOTAL INVESTMENT INCOME...... 2,232,925 (315,249) 30,554 94,864 107,596
---------------- ------------- ------------- ------------- -----------------
EXPENSES
Advisory (Note 3)............ 1,206,325 - 25,880 - -
Management and Administration
(Note 3)................. 241,264 70,074 5,176 22,876 392,421
Transfer agent (Note 3)
A Shares.................... 23,891 1,053 908 8,786 7,621
B Shares.................... 20,579 387 40 5,788 6,592
C Shares.................... 5 - - - -
I Shares.................... 1,161,850 349,308 25,257 99,806 312,804
Custody (Note 3)............. - - - - -
Accounting (Note 3).......... 20,000 10,000 10,000 18,000 18,000
Legal (Note 3)............... 10,224 3,275 211 1,087 2,805
Registration................. 16,999 13,309 8,575 10,615 12,271
Audit........................ 2,950 2,950 2,950 2,950 2,950
Trustees..................... 7,704 1,963 126 815 2,106
Distribution fees (Note 3)
A Shares.................... - 270 233 - -
B Shares.................... 82,314 1,547 159 23,152 26,368
C Shares.................... 14 - - - -
Amortization of organization
costs (Note 2)........... 5,960 5,960 344 3,269 -
Miscellaneous................ 5,188 2,208 247 946 1,461
---------------- ------------- ------------- ------------- -----------------
TOTAL EXPENSES............... 2,805,267 462,304 80,106 198,090 785,399
Fees waived and expenses
reimbursed (Note 3)..... (390,375) (58,215) (46,894) (71,865) (127,224)
---------------- ------------- ------------- ------------- -----------------
NET EXPENSES................. 2,414,892 404,089 33,212 126,225 658,175
---------------- ------------- ------------- ------------- -----------------
NET INVESTMENT INCOME
(LOSS)................... (181,967) (719,338) (2,658) (31,361) (550,579)
---------------- ------------- ------------- ------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss)
on Securities......... - - - - -
Investments in Core
Portfolios (Note
1).................. 10,407,051 5,944,664 (3,682,332) (23,716,075) (28,496,317)
Foreign currency
transactions from
investments in Core
Portfolios.......... (141,035) - - - -
Financial futures
transactions........ - - - - -
Financial futures
transactions from
investments in Core
Portfolios.......... (1,150,513) - (51,492) - -
---------------- ------------- ------------- ------------- -----------------
Net Realized Gain (Loss)
on Investments........ 9,115,503 5,944,664 (3,733,824) (23,716,075) (28,496,317)
---------------- ------------- ------------- ------------- -----------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Securities............ - - - - -
Investments in Core
Portfolios (Note
1).................. (32,052,606) 43,771,550 1,193,888 (3,550,477) (18,692,919)
Foreign currency
transactions from
investments in Core
Portfolios.......... (382) - - - -
Financial futures
transactions from
investments in Core
Portfolios.......... 26,759 - (10,654) - -
---------------- ------------- ------------- ------------- -----------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments........... (32,026,229) 43,771,550 1,183,234 (3,550,477) (18,692,919)
---------------- ------------- ------------- ------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS.............. (22,910,726) 49,716,214 (2,550,590) (27,266,552) (47,189,236)
---------------- ------------- ------------- ------------- -----------------
INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS............... $ (23,092,693) $ 48,996,876 $ (2,553,248) $(27,297,913) $(47,739,815)
---------------- ------------- ------------- ------------- -----------------
---------------- ------------- ------------- ------------- -----------------
<CAPTION>
INTERNATIONAL
FUND
-----------------
<S> <C>
INVESTMENT INCOME
Interest income.............. $ 1,032,222
Dividend income.............. 1,829,504
Securities lending income
(Notes 2 and 5).......... 60,671
Net expenses from Core
Portfolios (Note 1)...... (917,608)
-----------------
TOTAL INVESTMENT INCOME...... 2,004,789
-----------------
EXPENSES
Advisory (Note 3)............ 336,382
Management and Administration
(Note 3)................. 470,933
Transfer agent (Note 3)
A Shares.................... 4,037
B Shares.................... 2,565
C Shares.................... -
I Shares.................... 329,780
Custody (Note 3)............. -
Accounting (Note 3).......... 18,000
Legal (Note 3)............... 2,804
Registration................. 16,455
Audit........................ 2,950
Trustees..................... 2,109
Distribution fees (Note 3)
A Shares.................... -
B Shares.................... 10,260
C Shares.................... -
Amortization of organization
costs (Note 2)........... 5,960
Miscellaneous................ 1,597
-----------------
TOTAL EXPENSES............... 1,203,832
Fees waived and expenses
reimbursed (Note 3)..... (99,820)
-----------------
NET EXPENSES................. 1,104,012
-----------------
NET INVESTMENT INCOME
(LOSS)................... 900,777
-----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss)
on Securities......... -
Investments in Core
Portfolios (Note
1).................. 7,324,225
Foreign currency
transactions from
investments in Core
Portfolios.......... (276,945)
Financial futures
transactions........ -
Financial futures
transactions from
investments in Core
Portfolios.......... -
-----------------
Net Realized Gain (Loss)
on Investments........ 7,047,280
-----------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Securities............ -
Investments in Core
Portfolios (Note
1).................. (27,406,702)
Foreign currency
transactions from
investments in Core
Portfolios.......... 86,734
Financial futures
transactions from
investments in Core
Portfolios.......... -
-----------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments........... (27,319,968)
-----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS.............. (20,272,688)
-----------------
INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS............... $ (19,371,911)
-----------------
-----------------
</TABLE>
See Notes to Financial Statements
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26
<PAGE>
(This page has been left blank intentionally.)
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27
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE
STABLE GOVERNMENT TOTAL RETURN
INCOME INCOME INCOME BOND
FUND FUND FUND FUND
------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1997..... $ 124,537,806 $ 393,286,171 $ 266,697,641 $130,775,974
------------- -------------- ------------- -------------
OPERATIONS
Net investment income
(loss)................... 7,703,069 25,236,285 17,724,169 7,844,196
Net realized gain (loss) on
investments sold......... 180,042 590,854 5,713,653 3,752,024
Net change in unrealized
appreciation
(depreciation) on
investments.............. 280,340 12,638,932 8,900,463 120,524
------------- -------------- ------------- -------------
Net increase (decrease) in
net assets resulting from
operations............... 8,163,451 38,466,071 32,338,285 11,716,744
------------- -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... (506,395) (728,517) (363,744) (192,400)
B Shares.................... (68,901) (425,732) (219,574) (131,933)
I Shares.................... (6,890,484) (23,651,745) (17,140,851) (7,519,863)
Net realized gain on
investments
A Shares.................... - - - (14,547)
B Shares.................... - - - (12,417)
I Shares.................... - - - (677,747)
Return of Capital
A Shares.................... - - - -
B Shares.................... - - - -
I Shares.................... - - - -
------------- -------------- ------------- -------------
Total distributions to
shareholders............. (7,465,780) (24,805,994) (17,724,169) (8,548,907)
------------- -------------- ------------- -------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE TRANSACTIONS
(1)....................... 29,356,933 16,001,507 21,769,987 (19,182,003)
------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 30,054,604 29,661,584 36,384,103 (16,014,166)
------------- -------------- ------------- -------------
NET ASSETS - MAY 31, 1998 -
(INCLUDING LINE (A))...... 154,592,410 422,947,755 303,081,744 114,761,808
------------- -------------- ------------- -------------
OPERATIONS:
Net investment income
(loss)................... 4,393,064 12,665,304 9,777,500 3,273,991
Net realized gain (loss) on
investments sold......... (31,731) 8,411,614 4,688,994 (48,574)
Net change in unrealized
appreciation
(depreciation) on
investments.............. 752,535 4,840,002 3,059,969 1,606,590
------------- -------------- ------------- -------------
Net increase (decrease) in
net assets resulting from
operations............... 5,113,868 25,916,920 17,526,463 4,832,007
------------- -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... (225,093) (462,172) (261,649) (75,238)
B Shares.................... (40,149) (217,251) (148,492) (73,756)
C Shares.................... - - - -
I Shares.................... (4,174,527) (11,963,017) (9,367,359) (3,124,997)
Net realized gain on
investments
A Shares.................... - - - -
B Shares.................... - - - -
C Shares.................... - - - -
I Shares.................... - - - -
------------- -------------- ------------- -------------
Total distributions to
shareholders............. (4,439,769) (12,642,440) (9,777,500) (3,273,991)
------------- -------------- ------------- -------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE TRANSACTIONS
(1)....................... 25,320,662 15,190,398 47,743,257 (8,071,863)
------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 25,994,761 28,464,878 55,492,220 (6,513,847)
------------- -------------- ------------- -------------
NET ASSETS - NOVEMBER 30, 1998
- (INCLUDING LINE (B)).... $ 180,587,171 $ 451,412,633 $ 358,573,964 $108,247,961
------------- -------------- ------------- -------------
------------- -------------- ------------- -------------
(a) Undistributed
(distributions in excess
of) net investment income,
May 31, 1998.............. $ 201,603 $ 436,911 $ 14,155 $ (15,111)
------------- -------------- ------------- -------------
------------- -------------- ------------- -------------
(b) Undistributed
(distributions in excess
of) net investment income,
November 30, 1998......... $ 154,898 $ 459,775 $ 14,155 $ (15,111)
------------- -------------- ------------- -------------
------------- -------------- ------------- -------------
(c) Beginning of period....... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997
- ------------------------------
(1) For details on capital share transactions, see Statements of Changes in Net
Assets--Capital Stock Activity immediately following Statements of Changes in Net
Assets.
</TABLE>
See Notes to Financial Statements
[LOGO]
28
<PAGE>
FOR THE YEAR OR PERIOD ENDED MAY 31, 1998(c)
AND SIX MONTHS ENDED NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAX-FREE COLORADO MINNESOTA GROWTH INCOME VALUGROWTH
INCOME TAX-FREE TAX-FREE BALANCED EQUITY STOCK
FUND FUND FUND FUND FUND FUND
-------------- ------------- -------------- -------------- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1997..... $ 296,406,673 $ 60,940,499 $ 48,002,309 $ 503,381,834 $ 502,531,239 $ 205,625,200
-------------- ------------- -------------- -------------- --------------- --------------
OPERATIONS
Net investment income
(loss)................... 15,876,439 3,267,484 2,779,840 13,920,148 14,251,745 2,767,779
Net realized gain (loss) on
investments sold......... 5,515,394 477,006 348,871 28,958,690 12,683,426 102,163,282
Net change in unrealized
appreciation
(depreciation) on
investments.............. 8,997,364 2,416,938 2,099,959 67,300,551 217,868,488 (16,652,982)
-------------- ------------- -------------- -------------- --------------- --------------
Net increase (decrease) in
net assets resulting from
operations............... 30,389,197 6,161,428 5,228,670 110,179,389 244,803,659 88,278,079
-------------- ------------- -------------- -------------- --------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... (1,575,363) (1,535,133) (1,457,615) - (804,582) (148,126)
B Shares.................... (392,899) (335,170) (550,306) - (283,201) (9,192)
I Shares.................... (13,908,177) (1,397,181) (771,919) (13,409,934) (11,749,514) (3,083,321)
Net realized gain on
investments
A Shares.................... - - - - (1,048,454) (2,872,556)
B Shares.................... - - - - (850,000) (1,010,191)
I Shares.................... - - - (25,716,573) (13,660,767) (49,504,124)
Return of Capital
A Shares.................... - - - - - -
B Shares.................... - - - - - -
I Shares.................... - - - - - -
-------------- ------------- -------------- -------------- --------------- --------------
Total distributions to
shareholders............. (15,876,439) (3,267,484) (2,779,840) (39,126,507) (28,396,518) (56,627,510)
-------------- ------------- -------------- -------------- --------------- --------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE TRANSACTIONS
(1)....................... 22,005,402 11,917,170 20,430,717 91,323,239 637,975,931 408,494,094
-------------- ------------- -------------- -------------- --------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 36,518,160 14,811,114 22,879,547 162,376,121 854,383,072 440,144,663
-------------- ------------- -------------- -------------- --------------- --------------
NET ASSETS - MAY 31, 1998 -
(INCLUDING LINE (A))...... 332,924,833 75,751,613 70,881,856 665,757,955 1,356,914,311 645,769,863
-------------- ------------- -------------- -------------- --------------- --------------
OPERATIONS:
Net investment income
(loss)................... 8,488,036 1,910,182 1,675,925 7,423,027 8,865,137 1,206,459
Net realized gain (loss) on
investments sold......... 3,032,246 752,917 291,797 5,464,265 4,427,930 9,549,131
Net change in unrealized
appreciation
(depreciation) on
investments.............. 2,415,004 308,961 600,218 34,793,544 21,797,589 (37,836,283)
-------------- ------------- -------------- -------------- --------------- --------------
Net increase (decrease) in
net assets resulting from
operations............... 13,935,286 2,972,060 2,567,940 47,680,836 35,090,656 (27,080,693)
-------------- ------------- -------------- -------------- --------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... (1,001,384) (880,468) (821,234) - (509,073) (70,083)
B Shares.................... (244,967) (185,135) (356,704) - (216,106) -
C Shares.................... - - - - - -
I Shares.................... (7,241,685) (844,579) (499,288) - (7,862,043) (1,540,468)
Net realized gain on
investments
A Shares.................... - - - - (222,548) -
B Shares.................... - - - - (211,588) -
C Shares.................... - - - - - -
I Shares.................... - - - - (3,336,173) -
-------------- ------------- -------------- -------------- --------------- --------------
Total distributions to
shareholders............. (8,488,036) (1,910,182) (1,677,226) - (12,357,531) (1,610,551)
-------------- ------------- -------------- -------------- --------------- --------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE TRANSACTIONS
(1)....................... 30,422,625 12,620,755 5,455,714 26,531,200 125,893,027 (158,157,030)
-------------- ------------- -------------- -------------- --------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 35,869,875 13,682,633 6,346,428 74,212,036 148,626,152 (186,848,274)
-------------- ------------- -------------- -------------- --------------- --------------
NET ASSETS - NOVEMBER 30, 1998
- (INCLUDING LINE (B)).... $ 368,794,708 $ 89,434,246 $ 77,228,284 $ 739,969,991 $ 1,505,540,463 $ 458,921,589
-------------- ------------- -------------- -------------- --------------- --------------
-------------- ------------- -------------- -------------- --------------- --------------
(a) Undistributed
(distributions in excess
of) net investment income,
May 31, 1998.............. $ (509,881) $ - $ (41,761) $ 7,652,666 $ 3,083,891 $ 288,928
-------------- ------------- -------------- -------------- --------------- --------------
-------------- ------------- -------------- -------------- --------------- --------------
(b) Undistributed
(distributions in excess
of) net investment income,
November 30, 1998......... $ (509,881) $ - $ (43,062) $ 15,075,693 $ 3,361,806 $ (115,164)
-------------- ------------- -------------- -------------- --------------- --------------
-------------- ------------- -------------- -------------- --------------- --------------
(c) Beginning of period....... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997
- ------------------------------
(1) For details on capital share transactions, see Statements of Changes in Net
Assets--Capital Stock Activity immediately following Statements of Changes in Net
Assets.
<CAPTION>
DIVERSIFIED GROWTH
EQUITY EQUITY
FUND FUND
--------------- ---------------
<S> <C> <C>
NET ASSETS - MAY 31, 1997..... $ 1,271,706,512 $ 918,279,219
--------------- ---------------
OPERATIONS
Net investment income
(loss)................... 8,475,282 (1,202,479)
Net realized gain (loss) on
investments sold......... 90,735,628 124,921,732
Net change in unrealized
appreciation
(depreciation) on
investments.............. 236,638,160 79,116,165
--------------- ---------------
Net increase (decrease) in
net assets resulting from
operations............... 335,849,070 202,835,418
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... (276,764) (21,720)
B Shares.................... (113,973) -
I Shares.................... (9,474,703) (1,101,414)
Net realized gain on
investments
A Shares.................... (2,253,590) (1,880,012)
B Shares.................... (3,232,355) (1,221,598)
I Shares.................... (78,384,186) (95,402,591)
Return of Capital
A Shares.................... - -
B Shares.................... - -
I Shares.................... - -
--------------- ---------------
Total distributions to
shareholders............. (93,735,571) (99,627,335)
--------------- ---------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE TRANSACTIONS
(1)....................... 144,420,420 49,945,698
--------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 386,533,919 153,153,781
--------------- ---------------
NET ASSETS - MAY 31, 1998 -
(INCLUDING LINE (A))...... 1,658,240,431 1,071,433,000
--------------- ---------------
OPERATIONS:
Net investment income
(loss)................... 3,945,569 (181,967)
Net realized gain (loss) on
investments sold......... 11,503,987 9,115,503
Net change in unrealized
appreciation
(depreciation) on
investments.............. 20,437,158 (32,026,229)
--------------- ---------------
Net increase (decrease) in
net assets resulting from
operations............... 35,886,714 (23,092,693)
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... - -
B Shares.................... - -
C Shares.................... - -
I Shares.................... - -
Net realized gain on
investments
A Shares.................... - -
B Shares.................... - -
C Shares.................... - -
I Shares.................... - -
--------------- ---------------
Total distributions to
shareholders............. - -
--------------- ---------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE TRANSACTIONS
(1)....................... (55,272,470) (88,752,111)
--------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... (19,385,756) (111,844,804)
--------------- ---------------
NET ASSETS - NOVEMBER 30, 1998
- (INCLUDING LINE (B)).... $ 1,638,854,675 $ 959,588,196
--------------- ---------------
--------------- ---------------
(a) Undistributed
(distributions in excess
of) net investment income,
May 31, 1998.............. $ 6,542,972 $ 188,975
--------------- ---------------
--------------- ---------------
(b) Undistributed
(distributions in excess
of) net investment income,
November 30, 1998......... $ 10,488,541 $ 7,008
--------------- ---------------
--------------- ---------------
(c) Beginning of period....... Jun 1, 1997 Jun 1, 1997
- ------------------------------
(1) For details on capital sha
Assets--Capital Stock Acti
Assets.
</TABLE>
[LOGO]
29
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL SMALL
COMPANY DIVERSIFIED COMPANY CAP
GROWTH SMALL CAP STOCK OPPORTUNITIES INTERNATIONAL
FUND FUND FUND FUND FUND
------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1997..... $ 131,768,093 $ - $ 174,475,904 $ 77,854,351 $232,459,312
------------- ------------- -------------- ------------- -------------
OPERATIONS
Net investment income
(loss)................... (644,393) (5,731) (1,023,115) (791,599) 1,122,442
Net realized gain (loss) on
investments sold......... 13,678,786 (98,200) 34,416,452 4,160,372 4,029,919
Net change in unrealized
appreciation
(depreciation) on
investments.............. 33,488,238 (189,624) (23,455,025) 23,475,868 21,976,707
------------- ------------- -------------- ------------- -------------
Net increase (decrease) in
net assets resulting from
operations............... 46,522,631 (293,555) 9,938,312 26,844,641 27,129,068
------------- ------------- -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... - - - - (29,002)
B Shares.................... - - - - (6,111)
I Shares.................... - - - - (2,248,551)
Net realized gain on
investments
A Shares.................... - - (1,666,653) (76,723) -
B Shares.................... - - (1,144,041) (45,659) -
I Shares.................... (12,167,899) - (38,640,779) (4,293,143) -
Return of Capital
A Shares.................... - - (42,048) - -
B Shares.................... - - (29,123) - -
I Shares.................... - - (1,000,911) - -
------------- ------------- -------------- ------------- -------------
Total distributions to
shareholders............. (12,167,899) - (42,523,555) (4,415,525) (2,283,664)
------------- ------------- -------------- ------------- -------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE TRANSACTIONS
(1)....................... 66,376,400 12,844,720 (14,953,535) 197,553,437 27,949,215
------------- ------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 100,731,132 12,551,165 (47,538,778) 219,982,553 52,794,619
------------- ------------- -------------- ------------- -------------
NET ASSETS - MAY 31, 1998 -
(INCLUDING LINE (A))...... 232,499,225 12,551,165 126,937,126 297,836,904 285,253,931
------------- ------------- -------------- ------------- -------------
OPERATIONS:
Net investment income
(loss)................... (719,338) (2,658) (31,361) (550,579) 900,777
Net realized gain (loss) on
investments sold......... 5,944,664 (3,733,824) (23,716,075) (28,496,317) 7,047,280
Net change in unrealized
appreciation
(depreciation) on
investments.............. 43,771,550 1,183,234 (3,550,477) (18,692,919) (27,319,968)
------------- ------------- -------------- ------------- -------------
Net increase (decrease) in
net assets resulting from
operations............... 48,996,876 (2,553,248) (27,297,913) (47,739,815) (19,371,911)
------------- ------------- -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... - - - - -
B Shares.................... - - - - -
C Shares.................... - - - - -
I Shares.................... - - - - -
Net realized gain on
investments
A Shares.................... - - - - (25,419)
B Shares.................... - - - - (16,196)
C Shares.................... - - - - -
I Shares.................... - - - - (2,123,606)
------------- ------------- -------------- ------------- -------------
Total distributions to
shareholders............. - - - - (2,165,221)
------------- ------------- -------------- ------------- -------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE TRANSACTIONS
(1)....................... 82,545,622 26,893,619 (31,310,868) 5,475,327 3,616,035
------------- ------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 131,542,498 24,340,371 (58,608,781) (42,264,488) (17,921,097)
------------- ------------- -------------- ------------- -------------
NET ASSETS - NOVEMBER 30, 1998
- (INCLUDING LINE (B)).... $ 364,041,723 $ 36,891,536 $ 68,328,345 $255,572,416 $267,332,834
------------- ------------- -------------- ------------- -------------
------------- ------------- -------------- ------------- -------------
(a) Undistributed
(distributions in excess
of) net investment income,
May 31, 1998.............. $ - $ (2,549) $ - $ - $ 1,993,474
------------- ------------- -------------- ------------- -------------
------------- ------------- -------------- ------------- -------------
(b) Undistributed
(distributions in excess
of) net investment income,
November 30, 1998......... $ (719,338) $ (109) $ (31,361) $ (550,579) $ 2,894,251
------------- ------------- -------------- ------------- -------------
------------- ------------- -------------- ------------- -------------
(c) Beginning of period....... Jun 1, 1997 Dec 31, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997
- ------------------------------
(1) For details on capital share transactions, see Statements of Changes in Net Assets--Capital Stock
Activity immediately following Statements of Changes in Net Assets.
</TABLE>
See Notes to Financial Statements
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<PAGE>
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31
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE
STABLE GOVERNMENT TOTAL RETURN
INCOME INCOME INCOME BOND
FUND FUND FUND FUND
-------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... $ 29,800,927 $ 4,221,460 $ 3,728,447 $ 1,926,421
B shares.................... 1,235,385 1,494,445 1,708,790 577,233
I shares.................... 81,486,735 309,607,835 193,004,368 26,212,554
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - - -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 210,983 533,971 296,527 202,458
B shares.................... 58,778 302,863 181,100 122,628
I shares.................... 5,750,754 2,504,469 501,723 756,511
REDEMPTION OF SHARES
A shares.................... (33,964,911) (3,988,483) (1,801,850) (2,266,442)
B shares.................... (539,946) (2,847,150) (582,886) (360,395)
I shares.................... (54,681,772) (295,827,903) (175,266,232) (46,352,971)
-------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ $ 29,356,933 $ 16,001,507 $ 21,769,987 $(19,182,003)
-------------- -------------- ------------- -------------
-------------- -------------- ------------- -------------
SIX MONTHS ENDED NOVEMBER 30,
1998
SALE OF SHARES
A shares.................... $ 28,589,085 $ 5,916,719 $ 3,709,396 $ 574,317
B shares.................... 756,467 975,822 1,857,659 813,784
C shares.................... - - - -
I shares.................... 54,676,966 44,575,357 42,158,059 8,512,977
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - 20,822,516 -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 114,929 307,597 202,740 72,846
B shares.................... 35,292 152,022 122,350 62,840
C shares.................... - - - -
I shares.................... 3,476,506 1,460,851 538,203 374,760
REDEMPTION OF SHARES
A shares.................... (27,535,978) (4,019,890) (1,497,335) (2,177,770)
B shares.................... (543,122) (646,664) (377,392) (240,565)
C shares.................... - - - -
I shares.................... (34,249,483) (33,531,416) (19,792,939) (16,065,052)
-------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ $ 25,320,662 $ 15,190,398 $ 47,743,257 $ (8,071,863)
-------------- -------------- ------------- -------------
-------------- -------------- ------------- -------------
SHARE ACTIVITY
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... 2,883,671 383,818 384,279 201,230
B shares.................... 120,284 138,949 176,755 60,044
I shares.................... 7,944,101 27,888,520 20,150,168 2,733,673
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - - -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 18,447 47,920 30,693 21,103
B shares.................... 5,242 27,197 18,772 12,755
I shares.................... 505,180 224,878 51,839 79,696
REDEMPTION OF SHARES
A shares.................... (3,287,302) (357,902) (186,546) (235,845)
B shares.................... (52,325) (256,081) (60,281) (37,561)
I shares.................... (5,295,664) (26,688,598) (18,349,206) (4,823,029)
-------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ 2,841,634 1,408,701 2,216,473 (1,987,934)
-------------- -------------- ------------- -------------
-------------- -------------- ------------- -------------
SIX MONTHS ENDED NOVEMBER 30,
1998
SALE OF SHARES
A shares.................... 2,762,448 533,216 384,829 64,886
B shares.................... 72,959 91,606 193,965 86,499
C shares.................... - - - -
I shares.................... 5,281,026 3,957,955 4,287,660 891,994
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - 2,096,930 -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 11,126 14,507 10,299 3,465
B shares.................... 3,419 6,739 5,977 3,213
C shares.................... - - - -
I shares.................... 336,595 64,215 26,151 19,663
REDEMPTION OF SHARES
A shares.................... (2,658,726) (349,157) (150,126) (224,075)
B shares.................... (52,190) (56,838) (38,229) (24,819)
C shares.................... - - - -
I shares.................... (3,306,561) (2,932,052) (1,998,288) (1,652,561)
-------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ 2,450,096 1,330,191 4,819,168 (831,735)
-------------- -------------- ------------- -------------
-------------- -------------- ------------- -------------
(a) Beginning of period....... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997
</TABLE>
See Notes to Financial Statements
[LOGO]
32
<PAGE>
FOR THE YEAR OR PERIOD ENDED MAY 31, 1998(a)
AND SIX MONTHS ENDED NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAX-FREE COLORADO MINNESOTA GROWTH INCOME VALUGROWTH
INCOME TAX-FREE TAX-FREE BALANCED EQUITY STOCK
FUND FUND FUND FUND FUND FUND
-------------- ------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
DOLLAR AMOUNTS
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... $ 10,396,839 $ 7,477,552 $ 8,705,064 $ - $ 25,802,002 $ 9,756,755
B shares.................... 4,015,589 2,868,087 6,079,249 - 26,991,385 1,656,624
I shares.................... 207,775,946 8,617,144 11,447,292 173,888,398 724,447,714 463,597,240
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - - - 477,132,068 443,623,815
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 1,248,714 1,197,281 1,064,641 - 1,802,610 2,917,450
B shares.................... 302,167 232,515 409,199 - 1,100,313 1,005,500
I shares.................... 724,544 34,709 244,073 39,022,268 11,445,588 21,586,227
REDEMPTION OF SHARES
A shares.................... (7,217,647) (3,579,424) (3,166,663) - (8,154,670) (4,932,945)
B shares.................... (986,449) (1,495,848) (1,616,019) - (4,311,667) (674,256)
I shares.................... (194,254,301) (3,434,846) (2,736,119) (121,587,427) (618,279,412) (530,042,316)
-------------- ------------- -------------- -------------- -------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ $ 22,005,402 $ 11,917,170 $ 20,430,717 $ 91,323,239 $ 637,975,931 $408,494,094
-------------- ------------- -------------- -------------- -------------- -------------
-------------- ------------- -------------- -------------- -------------- -------------
SIX MONTHS ENDED NOVEMBER 30,
1998
SALE OF SHARES
A shares.................... $ 15,777,145 $ 4,924,952 $ 4,009,601 $ 880,125 $ 16,708,103 $ 2,803,864
B shares.................... 2,175,730 877,594 3,564,874 1,071,323 18,724,765 498,598
C shares.................... - - - 23,600 12,148 -
I shares.................... 31,075,402 9,686,203 3,848,021 88,913,460 138,149,977 5,744,840
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - - - 30,884,547 -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 793,686 710,183 570,777 - 696,509 61,822
B shares.................... 183,232 126,696 257,010 - 411,358 -
C shares.................... - - - - - -
I shares.................... 667,130 34,319 144,890 - 4,398,463 76,812
REDEMPTION OF SHARES
A shares.................... (3,431,235) (998,857) (2,871,907) - (6,815,015) (7,835,623)
B shares.................... (573,178) (415,692) (1,066,077) (2,582) (4,996,842) (603,651)
C shares.................... - - - - - -
I shares.................... (16,245,287) (2,324,643) (3,001,475) (64,354,726) (72,280,986) (158,903,692)
-------------- ------------- -------------- -------------- -------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ $ 30,422,625 $ 12,620,755 $ 5,455,714 $ 26,531,200 $ 125,893,027 $(158,157,030)
-------------- ------------- -------------- -------------- -------------- -------------
-------------- ------------- -------------- -------------- -------------- -------------
SHARE ACTIVITY
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... 999,879 709,964 798,495 - 673,475 377,663
B shares.................... 386,728 270,553 555,223 - 706,729 65,527
I shares.................... 20,205,190 812,957 1,051,163 6,418,622 19,738,592 17,920,557
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - - - 13,451,708 17,761,394
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 120,185 113,433 97,609 - 50,267 121,256
B shares.................... 29,057 21,971 37,450 - 31,134 42,872
I shares.................... 69,534 3,282 22,358 1,512,613 317,407 926,648
REDEMPTION OF SHARES
A shares.................... (693,862) (340,595) (290,915) - (217,182) (189,738)
B shares.................... (94,437) (142,636) (147,723) - (115,169) (26,363)
I shares.................... (18,916,946) (327,437) (250,492) (4,523,554) (16,842,496) (20,514,350)
-------------- ------------- -------------- -------------- -------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ 2,105,328 1,121,492 1,873,168 3,407,681 17,794,465 16,485,466
-------------- ------------- -------------- -------------- -------------- -------------
-------------- ------------- -------------- -------------- -------------- -------------
SIX MONTHS ENDED NOVEMBER 30,
1998
SALE OF SHARES
A shares.................... 1,518,789 491,591 387,891 30,167 415,775 117,940
B shares.................... 213,205 87,013 332,125 37,689 467,620 20,223
C shares.................... - - - 785 281 -
I shares.................... 2,951,764 901,111 351,943 - 2,621,147 229,111
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - - 3,121,386 833,816 -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 35,990 33,357 25,242 - 18,032 1,126
B shares.................... 8,662 5,979 11,549 - 10,804 -
C shares.................... - - - - - -
I shares.................... 29,656 1,556 6,527 - 949,817 1,431
REDEMPTION OF SHARES
A shares.................... (322,432) (92,994) (258,025) - (172,193) (335,831)
B shares.................... (53,707) (38,375) (96,220) (86) (126,633) (25,697)
C shares.................... - - - - - -
I shares.................... (1,530,543) (216,122) (268,097) (2,296,483) (1,821,352) (6,664,837)
-------------- ------------- -------------- -------------- -------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ 2,851,384 1,173,116 492,935 893,458 3,197,114 (6,656,534)
-------------- ------------- -------------- -------------- -------------- -------------
-------------- ------------- -------------- -------------- -------------- -------------
(a) Beginning of period....... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997
<CAPTION>
DIVERSIFIED GROWTH
EQUITY EQUITY
FUND FUND
------------- -------------
<S> <C> <C>
DOLLAR AMOUNTS
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... $ 27,277,888 $ 8,477,025
B shares.................... 41,099,564 7,062,682
I shares.................... 309,400,646 203,089,698
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 2,508,624 1,889,663
B shares.................... 3,272,867 1,216,596
I shares.................... 86,692,121 96,307,274
REDEMPTION OF SHARES
A shares.................... (4,847,852) (4,689,355)
B shares.................... (5,131,550) (1,402,259)
I shares.................... (315,851,888) (262,005,626)
------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ $ 144,420,420 $ 49,945,698
------------- -------------
------------- -------------
SIX MONTHS ENDED NOVEMBER 30,
1998
SALE OF SHARES
A shares.................... $ 10,378,396 $ 2,024,668
B shares.................... 15,385,866 2,487,613
C shares.................... 49,015 35,018
I shares.................... 162,745,673 63,517,153
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 337 134
B shares.................... - -
C shares.................... - -
I shares.................... - -
REDEMPTION OF SHARES
A shares.................... (9,025,318) (5,259,016)
B shares.................... (4,808,270) (1,243,721)
C shares.................... - -
I shares.................... (229,998,169) (150,313,960)
------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ $ (55,272,470) $ (88,752,111)
------------- -------------
------------- -------------
SHARE ACTIVITY
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... 668,348 242,061
B shares.................... 1,015,535 202,901
I shares.................... 7,679,211 5,835,291
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 66,201 60,274
B shares.................... 87,194 39,280
I shares.................... 2,287,744 3,072,002
REDEMPTION OF SHARES
A shares.................... (118,188) (134,074)
B shares.................... (125,529) (40,469)
I shares.................... (7,875,238) (7,547,813)
------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ 3,685,278 1,729,453
------------- -------------
------------- -------------
SIX MONTHS ENDED NOVEMBER 30,
1998
SALE OF SHARES
A shares.................... 243,108 58,195
B shares.................... 365,344 74,451
C shares.................... 1,164 1,033
I shares.................... 3,811,006 1,870,761
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... (12) 4
B shares.................... - -
C shares.................... - -
I shares.................... - -
REDEMPTION OF SHARES
A shares.................... (211,721) (159,162)
B shares.................... (116,810) (38,846)
C shares.................... - -
I shares.................... (5,549,875) (4,381,485)
------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ (1,457,796) (2,575,049)
------------- -------------
------------- -------------
(a) Beginning of period....... Jun 1, 1997 Jun 1, 1997
</TABLE>
[LOGO]
33
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY (UNAUDITED)
(CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL SMALL
COMPANY DIVERSIFIED COMPANY CAP
GROWTH SMALL CAP STOCK OPPORTUNITIES INTERNATIONAL
FUND FUND FUND FUND FUND
------------- -------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
DOLLAR AMOUNTS
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... $ - $ - $ 32,666,817 $ 6,586,891 $ 1,806,507
B shares.................... - - 1,056,804 6,098,057 571,189
I shares.................... 96,865,190 14,057,810 88,835,637 222,106,855 63,830,151
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - 44,432,702 - -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - 1,700,465 76,078 28,988
B shares.................... - - 1,155,994 46,101 6,031
I shares.................... 11,421,974 - 10,996,066 3,497,844 1,644,365
REDEMPTION OF SHARES
A shares.................... - - (32,367,012) (440,970) (1,002,906)
B shares.................... - - (719,617) (167,823) (197,871)
I shares.................... (41,910,764) (1,213,090) (162,711,391) (40,249,596) (38,737,239)
------------- -------------- ------------- ------------- --------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ $ 66,376,400 $ 12,844,720 $ (14,953,535) $197,553,437 $ 27,949,215
------------- -------------- ------------- ------------- --------------
------------- -------------- ------------- ------------- --------------
SIX MONTHS ENDED NOVEMBER 30,
1998
SALE OF SHARES
A shares.................... $ 3,359,207 $ 2,528,105 $ 26,971,084 $ 1,566,525 $ 976,161
B shares.................... 2,516,544 171,273 272,753 380,338 80,603
C shares.................... - - - - -
I shares.................... 110,429,681 27,469,674 3,793,947 44,974,782 32,029,609
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - - - 1,767,537
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - 42 - 25,378
B shares.................... - - - - 16,046
C shares.................... - - - - -
I shares.................... - - - - 1,656,709
REDEMPTION OF SHARES
A shares.................... (64,677) (129,813) (28,330,657) (1,032,917) (482,765)
B shares.................... - - (563,015) (509,325) (207,911)
C shares.................... - - - - -
I shares.................... (33,695,133) (3,145,620) (33,455,022) (39,904,076) (32,245,332)
------------- -------------- ------------- ------------- --------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ $ 82,545,622 $ 26,893,619 $ (31,310,868) $ 5,475,327 $ 3,616,035
------------- -------------- ------------- ------------- --------------
------------- -------------- ------------- ------------- --------------
SHARE ACTIVITY
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... - - 2,539,744 279,457 80,906
B shares.................... - - 79,101 259,433 25,847
I shares.................... 2,562,358 1,303,714 5,774,480 9,752,210 2,872,843
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - 2,892,754 - -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - 145,570 3,533 1,436
B shares.................... - - 102,296 2,132 300
I shares.................... 331,263 - 967,636 162,388 81,404
REDEMPTION OF SHARES
A shares.................... - - (2,510,624) (18,241) (45,582)
B shares.................... - - (55,925) (6,248) (8,757)
I shares.................... (1,111,098) (110,791) (11,868,058) (1,738,955) (1,776,454)
------------- -------------- ------------- ------------- --------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ 1,782,523 1,192,923 (1,933,026) 8,695,709 1,231,943
------------- -------------- ------------- ------------- --------------
------------- -------------- ------------- ------------- --------------
SIX MONTHS ENDED NOVEMBER 30,
1998
SALE OF SHARES
A shares.................... 74,568 278,396 2,815,759 80,686 45,457
B shares.................... 57,209 21,283 27,901 18,912 3,603
C shares.................... - - - - -
I shares.................... 2,616,194 3,063,446 407,002 2,149,836 1,417,165
SHARES ISSUED IN CONVERSION
(NOTE 7)
I shares.................... - - - - 91,630
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - 3 - 1,319
B shares.................... - - - - 841
C shares.................... - - - - -
I shares.................... - - - - 86,062
REDEMPTION OF SHARES
A shares.................... (1,332) (14,075) (2,939,584) (49,996) (22,191)
B shares.................... - - (61,320) (26,772) (9,823)
C shares.................... - - - - -
I shares.................... (790,751) (355,967) (3,474,023) (1,973,115) (1,462,243)
------------- -------------- ------------- ------------- --------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ 1,955,888 2,993,083 (3,224,262) 199,551 151,820
------------- -------------- ------------- ------------- --------------
------------- -------------- ------------- ------------- --------------
(a) Beginning of period....... Jun 1, 1997 Dec 31, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997
</TABLE>
See Notes to Financial Statements
[LOGO]
34
<PAGE>
(This page has been left blank intentionally.)
[LOGO]
35
<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 REALIZED RETURN OF VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS CAPITAL SHARE
--------- ---------- -------------- ---------- ------------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
STABLE INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... $10.31 $ 0.28 $ 0.03 $(0.27) $ - $ - $10.35
June 1, 1997 to May 31, 1998.......... 10.24 0.52 0.04 (0.49) - - 10.31
June 1, 1996 to May 31, 1997.......... 10.20 0.58 0.04 (0.58) - - 10.24
May 2, 1996(g) to May 31, 1996........ 10.22 0.02 - (0.04) - - 10.20
B SHARES
June 1, 1998 to November 30, 1998..... 10.30 0.24 0.04 (0.24) - - 10.34
June 1, 1997 to May 31, 1998.......... 10.24 0.58 0.05 (0.57) - - 10.30
June 1, 1996 to May 31, 1997.......... 10.20 0.52 0.02 (0.50) - - 10.24
May 17, 1996(g) to May 31, 1996....... 10.23 0.02 (0.01) (0.04) - - 10.20
I SHARES
June 1, 1998 to November 30, 1998..... 10.30 0.27 0.05 (0.27) - - 10.35
June 1, 1997 to May 31, 1998.......... 10.24 0.58 0.05 (0.57) - - 10.30
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(g) to October 31,
1995................................ 10.00 0.50 0.22 - - - 10.72
INTERMEDIATE GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... 11.22 0.32 0.36 (0.33) - - 11.57
June 1, 1997 to May 31, 1998.......... 10.84 0.68 0.31 (0.61) - - 11.22
June 1, 1996 to May 31, 1997.......... 10.89 0.73 (0.05) (0.73) - - 10.84
May 2, 1996(g) to May 31, 1996........ 10.89 0.03 - (0.03) - - 10.89
B SHARES
June 1, 1998 to November 30, 1998..... 11.21 0.29 0.35 (0.29) - - 11.56
June 1, 1997 to May 31, 1998.......... 10.83 0.78 0.30 (0.70) - - 11.21
June 1, 1996 to May 31, 1997.......... 10.89 0.64 (0.05) (0.65) - - 10.83
May 17, 1996(g) to May 31, 1996....... 10.97 0.03 (0.08) (0.03) - - 10.89
I SHARES
June 1, 1998 to November 30, 1998..... 11.22 0.33 0.35 (0.33) - - 11.57
June 1, 1997 to May 31, 1998.......... 10.84 0.71 0.37 (0.70) - - 11.22
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(g) to October 31,
1995(e)............................. 11.11 0.93 0.36 - - - 12.40
INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... 9.79 0.30 0.23 (0.30) - - 10.02
June 1, 1997 to May 31, 1998.......... 9.27 0.61 0.52 (0.61) - - 9.79
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, 1998 to November 30, 1998..... 9.77 0.26 0.23 (0.26) - - 10.00
June 1, 1997 to May 31, 1998.......... 9.26 0.54 0.51 (0.54) - - 9.77
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(g) to May 31, 1994..... 10.67 0.50 (0.90) (0.50) (0.26) - 9.51
I SHARES
June 1, 1998 to November 30, 1998..... 9.78 0.30 0.23 (0.30) - - 10.01
June 1, 1997 to May 31, 1998.......... 9.27 0.61 0.51 (0.61) - - 9.78
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(g) to May 31, 1994..... 10.68 0.58 (0.91) (0.58) (0.26) - 9.51
</TABLE>
[LOGO]
See Notes to Financial Highlights and Notes to Financial Statements
36
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS NET ASSETS AT
------------------------------------------- PORTFOLIO END OF PERIOD
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S
INCOME (LOSS) EXPENSES EXPENSES(a) RETURN(b) RATE OMITTED)
--------------- ---------- ------------ ------------ --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
STABLE INCOME FUND
- -----------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... 5.23%(c)(d) 0.65%(c)(d) 0.81%(c)(d) 3.08% 19.25%(f) $ 9,785
June 1, 1997 to May 31,
1998................. 5.74%(d) 0.65%(d) 0.97%(d) 6.38% 37.45%(f) 8,561
June 1, 1996 to May 31,
1997................. 5.69% 0.65% 0.87% 6.24% 41.30% 12,451
May 2, 1996(g) to May
31, 1996............. 5.77%(c) 0.70%(c) 2.22%(c) 0.23% 109.95% 16,256
B SHARES
June 1, 1998 to
November 30, 1998.... 4.47%(c)(d) 1.40%(c)(d) 1.81%(c)(d) 2.70% 19.25%(f) 2,074
June 1, 1997 to May 31,
1998................. 4.94%(d) 1.40%(d) 2.37%(d) 5.50% 37.45%(f) 1,817
June 1, 1996 to May 31,
1997................. 4.96% 1.39% 2.89% 5.43% 41.30% 1,056
May 17, 1996(g) to May
31, 1996............. 5.02%(c) 1.42%(c) 3.07%(c) 0.12% 109.95% 867
I SHARES
June 1, 1998 to
November 30, 1998.... 5.22%(c)(d) 0.65%(c)(d) 0.78%(c)(d) 3.19% 19.25%(f) 168,728
June 1, 1997 to May 31,
1998................. 5.69%(d) 0.65%(d) 0.81%(d) 6.28% 37.45%(f) 144,215
June 1, 1996 to May 31,
1997................. 5.73% 0.65% 0.79% 6.24% 41.30% 111,030
November 1, 1995 to May
31, 1996............. 5.74%(c) 0.65%(c) 0.92%(c) 2.97% 109.95% 83,404
November 11, 1994(g) to
October 31, 1995..... 5.91%(c) 0.65%(c) 0.98%(c) 7.20% 115.85% 48,087
INTERMEDIATE GOVERNMENT INCOME FUND
- -----------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... 5.77%(c) 0.68%(c) 0.78%(c) 6.14% 70.65% 17,065
June 1, 1997 to May 31,
1998................. 6.35% 0.68% 0.86% 10.19% 96.76% 14,325
June 1, 1996 to May 31,
1997................. 6.58% 0.68% 0.80% 6.36% 183.05% 13,038
May 2, 1996(g) to May
31, 1996............. 7.32%(c) 0.75%(c) 1.74%(c) 0.26% 74.64% 16,562
B SHARES
June 1, 1998 to
November 30, 1998.... 5.02%(c) 1.43%(c) 1.78%(c) 5.75% 70.65% 9,011
June 1, 1997 to May 31,
1998................. 5.60% 1.43% 1.85% 9.38% 96.76% 8,277
June 1, 1996 to May 31,
1997................. 5.80% 1.42% 1.85% 5.51% 183.05% 8,970
May 17, 1996(g) to May
31, 1996............. 5.56%(c) 1.35%(c) 2.65%(c) (0.49%) 74.64% 10,682
I SHARES
June 1, 1998 to
November 30, 1998.... 5.78%(c) 0.68%(c) 0.72%(c) 6.14% 70.65% 425,336
June 1, 1997 to May 31,
1998................. 6.35% 0.68% 0.72% 10.19% 96.76% 400,346
June 1, 1996 to May 31,
1997................. 6.57% 0.68% 0.72% 6.36% 183.05% 371,278
November 1, 1995 to May
31, 1996............. 6.71%(c) 0.71%(c) 1.17%(c) 0.60% 74.64% 399,324
November 11, 1994(g) to
October 31,
1995(e).............. 7.79%(c) 0.68%(c) 0.93%(c) 11.58% 240.90% 50,213
INCOME FUND
- -----------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... 5.96%(c) 0.75%(c) 1.01%(c) 5.45% 87.20% 10,299
June 1, 1997 to May 31,
1998................. 6.29% 0.75% 1.14% 12.47% 167.09% 7,661
June 1, 1996 to May 31,
1997................. 6.59% 0.75% 1.17% 6.79% 231.00% 5,142
June 1, 1995 to May 31,
1996................. 6.33% 0.75% 1.16% 2.58% 270.17% 5,521
June 1, 1994 to May 31,
1995................. 7.02% 0.75% 1.24% 8.49% 98.83% 6,231
June 1, 1993 to May 31,
1994................. 6.72% 0.60% 1.16% (1.58%) 26.67% 6,177
B SHARES
June 1, 1998 to
November 30, 1998.... 5.21%(c) 1.50%(c) 2.01%(c) 5.06% 87.20% 6,588
June 1, 1997 to May 31,
1998................. 5.54% 1.50% 2.19% 11.52% 167.09% 4,855
June 1, 1996 to May 31,
1997................. 5.87% 1.50% 2.25% 6.03% 231.00% 3,349
June 1, 1995 to May 31,
1996................. 5.57% 1.50% 2.27% 1.92% 270.17% 3,292
June 1, 1994 to May 31,
1995................. 6.24% 1.50% 2.21% 7.57% 98.83% 3,296
August 5, 1993(g) to
May 31, 1994......... 5.82%(c) 1.33%(c) 2.08%(c) (4.82%)(c) 26.67% 2,605
I SHARES
June 1, 1998 to
November 30, 1998.... 6.00%(c) 0.75%(c) 0.91%(c) 5.46% 87.20% 341,687
June 1, 1997 to May 31,
1998................. 6.32% 0.75% 0.92% 12.35% 167.09% 290,566
June 1, 1996 to May 31,
1997................. 6.59% 0.75% 1.02% 6.90% 231.00% 258,207
June 1, 1995 to May 31,
1996................. 6.30% 0.75% 1.06% 2.58% 270.17% 271,157
June 1, 1994 to May 31,
1995................. 7.02% 0.75% 1.06% 8.49% 98.83% 109,994
August 2, 1993(g) to
May 31, 1994......... 6.75%(c) 0.61%(c) 1.09%(c) (4.04%)(c) 26.67% 93,665
</TABLE>
[LOGO]
37
<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 REALIZED RETURN OF VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS CAPITAL SHARE
--------- ---------- -------------- ---------- ------------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN BOND FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... $ 9.63 $ 0.28 $ 0.13 $(0.28) $ - $ - $ 9.76
June 1, 1997 to May 31, 1998.......... 9.40 0.59 0.28 (0.59) (0.05) - 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(g) to May 31,
1994................................ 10.00 0.27 (0.46) (0.27) - - 9.54
B SHARES
June 1, 1998 to November 30, 1998..... 9.65 0.25 0.13 (0.25) - - 9.78
June 1, 1997 to May 31, 1998.......... 9.42 0.52 0.28 (0.52) (0.05) - 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(g) to May 31,
1994................................ 10.00 0.24 (0.46) (0.24) - - 9.54
I SHARES
June 1, 1998 to November 30, 1998..... 9.64 0.28 0.14 (0.28) - - 9.78
June 1, 1997 to May 31, 1998.......... 9.41 0.59 0.28 (0.59) (0.05) - 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(g) to May 31,
1994................................ 10.00 0.27 (0.46) (0.27) - - 9.54
TAX-FREE INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... 10.54 0.26 0.17 (0.26) - - 10.71
June 1, 1997 to May 31, 1998.......... 10.05 0.53 0.49 (0.53) - - 10.54
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, 1998 to November 30, 1998..... 10.54 0.22 0.17 (0.22) - - 10.71
June 1, 1997 to May 31, 1998.......... 10.05 0.46 0.48 (0.45) - - 10.54
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(g) to May 31, 1994..... 10.17 0.39 (0.50) (0.39) (0.07) - 9.60
I SHARES
June 1, 1998 to November 30, 1998..... 10.54 0.26 0.17 (0.26) - - 10.71
June 1, 1997 to May 31, 1998.......... 10.06 0.53 0.48 (0.53) - - 10.54
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(g) to May 31, 1994..... 10.14 0.47 (0.47) (0.47) (0.07) - 9.60
COLORADO TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... 10.69 0.25 0.14 (0.25) - - 10.83
June 1, 1997 to May 31, 1998.......... 10.22 0.53 0.47 (0.53) - - 10.69
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
</TABLE>
[LOGO]
See Notes to Financial Highlights and Notes to Financial Statements
38
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS NET ASSETS AT
------------------------------------------- PORTFOLIO END OF PERIOD
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S
INCOME (LOSS) EXPENSES EXPENSES(a) RETURN(b) RATE OMITTED)
--------------- ---------- ------------ ------------ --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
TOTAL RETURN BOND FUND
- -----------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... 5.80%(c)(d) 0.75%(c)(d) 1.02%(c)(d) 4.32% 16.83%(f) $ 1,552
June 1, 1997 to May 31,
1998................. 6.14%(d) 0.75%(d) 1.18%(d) 9.46% 134.56%(f) 3,030
June 1, 1996 to May 31,
1997................. 6.37% 0.75% 1.31% 6.84% 55.07% 3,086
June 1, 1995 to May 31,
1996................. 6.48% 0.76% 1.57% 3.41% 77.49% 2,010
June 1, 1994 to May 31,
1995................. 6.94% 0.64% 2.38% 9.42% 35.19% 599
December 31, 1993(g) to
May 31, 1994......... 6.04%(c) 0.37%(c) 13.29%(c) (4.64%) 37.50% 150
B SHARES
June 1, 1998 to
November 30, 1998.... 5.04%(c)(d) 1.50%(c)(d) 2.02%(c)(d) 3.93% 16.83%(f) 3,320
June 1, 1997 to May 31,
1998................. 5.37%(d) 1.50%(d) 2.27%(d) 8.64% 134.56%(f) 2,648
June 1, 1996 to May 31,
1997................. 5.61% 1.49% 2.37% 6.27% 55.07% 2,254
June 1, 1995 to May 31,
1996................. 5.75% 1.51% 2.48% 2.63% 77.49% 2,098
June 1, 1994 to May 31,
1995................. 6.17% 1.41% 3.09% 8.59% 35.19% 919
December 31, 1993(g) to
May 31, 1994......... 5.40%(c) 1.11%(c) 8.29%(c) (5.23%)(c) 37.50% 186
I SHARES
June 1, 1998 to
November 30, 1998.... 5.80%(c)(d) 0.75%(c)(d) 0.97%(c)(d) 4.43% 16.83%(f) 103,376
June 1, 1997 to May 31,
1998................. 6.14%(d) 0.75%(d) 0.91%(d) 9.45% 134.56%(f) 109,084
June 1, 1996 to May 31,
1997................. 6.36% 0.75% 1.05% 6.95% 55.07% 125,437
June 1, 1995 to May 31,
1996................. 6.57% 0.75% 1.07% 3.41% 77.49% 120,767
June 1, 1994 to May 31,
1995................. 7.04% 0.71% 1.17% 9.43% 35.19% 96,199
December 31, 1993(g) to
May 31, 1994......... 6.81%(c) 0.46%(c) 2.10%(c) (4.62%)(c) 37.50% 11,694
TAX-FREE INCOME FUND
- -----------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... 4.82%(c) 0.60%(c) 0.96%(c) 4.11% 46.19% 48,876
June 1, 1997 to May 31,
1998................. 5.09% 0.60% 0.99% 10.33% 142.81% 35,121
June 1, 1996 to May 31,
1997................. 5.41% 0.50% 1.06% 8.43% 152.33% 29,217
June 1, 1995 to May 31,
1996................. 5.54% 0.40% 1.06% 5.29% 126.20% 33,914
June 1, 1994 to May 31,
1995................. 5.87% 0.60% 1.12% 8.42% 130.90% 30,786
June 1, 1993 to May 31,
1994................. 5.77% 0.60% 1.14% 1.74% 116.54% 34,426
B SHARES
June 1, 1998 to
November 30, 1998.... 4.09%(c) 1.35%(c) 1.96%(c) 3.72% 46.19% 13,048
June 1, 1997 to May 31,
1998................. 4.31% 1.35% 2.05% 9.52% 142.81% 11,070
June 1, 1996 to May 31,
1997................. 4.64% 1.26% 2.15% 7.63% 152.33% 7,329
June 1, 1995 to May 31,
1996................. 4.77% 1.14% 2.21% 4.50% 126.20% 5,897
June 1, 1994 to May 31,
1995................. 5.05% 1.35% 2.21% 7.61% 130.90% 3,729
August 6, 1993(g) to
May 31, 1994......... 4.76%(c) 1.31%(c) 2.24%(c) (0.98%)(c) 116.54% 2,674
I SHARES
June 1, 1998 to
November 30, 1998.... 4.86%(c) 0.60%(c) 0.91%(c) 4.11% 46.19% 306,870
June 1, 1997 to May 31,
1998................. 5.09% 0.60% 0.92% 10.22% 142.81% 286,734
June 1, 1996 to May 31,
1997................. 5.40% 0.50% 1.03% 8.54% 152.33% 259,861
June 1, 1995 to May 31,
1996................. 5.57% 0.32% 1.06% 5.29% 126.20% 276,159
June 1, 1994 to May 31,
1995................. 5.84% 0.60% 1.05% 8.42% 130.90% 94,454
August 2, 1993(g) to
May 31, 1994......... 5.71%(c) 0.60%(c) 1.10%(c) (0.21%)(c) 116.54% 102,084
COLORADO TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... 4.70%(c) 0.60%(c) 0.99%(c) 3.72% 51.00% 39,373
June 1, 1997 to May 31,
1998................. 5.00% 0.60% 1.04% 9.96% 69.87% 34,254
June 1, 1996 to May 31,
1997................. 5.36% 0.45% 1.14% 9.00% 129.26% 27,806
June 1, 1995 to May 31,
1996................. 5.30% 0.30% 1.13% 5.35% 171.41% 26,991
June 1, 1994 to May 31,
1995................. 5.10% 0.30% 1.15% 7.47% 47.88% 25,997
June 1, 1993 to May 31,
1994................. 4.94% 0.07% 1.23% 2.02% 40.92% 31,724
</TABLE>
[LOGO]
39
<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 REALIZED RETURN OF VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS CAPITAL SHARE
--------- ---------- -------------- ---------- ------------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
COLORADO TAX-FREE FUND (CONT'D)
- --------------------------------------------------------------------------------------------------------------------------------
B SHARES
June 1, 1998 to November 30, 1998..... $10.71 $ 0.21 $ 0.13 $(0.21) $ - $ - $10.84
June 1, 1997 to May 31, 1998.......... 10.23 0.45 0.48 (0.45) - - 10.71
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(g) to May 31, 1994..... 10.04 0.35 (0.33) (0.35) (0.01) - 9.70
I SHARES
June 1, 1998 to November 30, 1998..... 10.69 0.25 0.14 (0.25) - - 10.83
June 1, 1997 to May 31, 1998.......... 10.22 0.53 0.47 (0.53) - - 10.69
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(g) to May 31, 1994.... 10.22 0.39 (0.52) (0.39) (0.01) - 9.69
MINNESOTA TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... 11.05 0.26 0.13 (0.26) - - 11.18
June 1, 1997 to May 31, 1998.......... 10.57 0.53 0.48 (0.53) - - 11.05
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, 1998 to November 30, 1998..... 11.05 0.22 0.13 (0.22) - - 11.18
June 1, 1997 to May 31, 1998.......... 10.57 0.45 0.48 (0.45) - - 11.05
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(g) to May 31, 1994..... 10.77 0.35 (0.43) (0.35) (0.19) - 10.15
I SHARES
June 1, 1998 to November 30, 1998..... 11.05 0.26 0.13 (0.26) - - 11.18
June 1, 1997 to May 31, 1998.......... 10.57 0.53 0.48 (0.53) - - 11.05
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(g) to May 31, 1994..... 10.74 0.43 (0.39) (0.43) (0.19) - 10.16
GROWTH BALANCED FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
October 14, 1998(g) to November 30,
1998................................ 28.09 0.06 3.65 - - - 31.80
B SHARES
October 1, 1998(g) to November 30,
1998................................ 26.96 0.03 2.99 - - - 29.98
C SHARES
October 1, 1998(g) to November 30,
1998................................ 26.96 0.01 3.07 - - - 30.04
I SHARES
June 1, 1998 to November 30, 1998..... 28.06 0.29 1.70 - - - 30.05
June 1, 1997 to May 31, 1998.......... 24.77 0.58 4.53 (0.61) (1.21) - 28.06
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(g) to October 31,
1995................................ 17.95 0.47 2.83 - - - 21.25
</TABLE>
[LOGO]
See Notes to Financial Highlights and Notes to Financial Statements
40
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS NET ASSETS AT
------------------------------------------- PORTFOLIO END OF PERIOD
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S
INCOME (LOSS) EXPENSES EXPENSES(a) RETURN(b) RATE OMITTED)
--------------- ---------- ------------ ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
COLORADO TAX-FREE FUND (CONT'D)
- -------------------------------------------------------------------------------------------------------------------
B SHARES
June 1, 1998 to
November 30, 1998.... 3.96%(c) 1.35%(c) 1.99%(c) 3.24% 51.00% $ 9,866
June 1, 1997 to May 31,
1998................. 4.24% 1.35% 2.04% 9.25% 69.87% 9,156
June 1, 1996 to May 31,
1997................. 4.60% 1.20% 2.15% 8.19% 129.26% 7,218
June 1, 1995 to May 31,
1996................. 4.64% 1.05% 2.16% 4.56% 171.41% 6,400
June 1, 1994 to May 31,
1995................. 4.32% 1.05% 2.16% 6.67% 47.88% 5,198
August 2, 1993(g) to
May 31, 1994......... 4.08%(c) 0.85%(c) 2.24%(c) 0.27%(c) 40.92% 4,494
I SHARES
June 1, 1998 to
November 30, 1998.... 4.71%(c) 0.60%(c) 0.98%(c) 3.72% 51.00% 40,196
June 1, 1997 to May 31,
1998................. 5.01% 0.60% 1.01% 9.97% 69.87% 32,342
June 1, 1996 to May 31,
1997................. 5.35% 0.45% 1.13% 9.00% 129.26% 25,917
June 1, 1995 to May 31,
1996................. 5.30% 0.30% 1.13% 5.35% 171.41% 24,074
June 1, 1994 to May 31,
1995................. 5.08% 0.30% 1.16% 7.47% 47.88% 24,539
August 23, 1993(g) to
May 31, 1994......... 5.03%(c) 0.11%(c) 1.21%(c) 0.90%(c) 40.92% 15,153
MINNESOTA TAX-FREE FUND
- -------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... 4.65%(c) 0.60%(c) 1.00%(c) 3.56% 30.85% 35,727
June 1, 1997 to May 31,
1998................. 4.83% 0.60% 1.07% 9.71% 68.27% 33,597
June 1, 1996 to May 31,
1997................. 5.11% 0.60% 1.21% 7.98% 96.68% 25,739
June 1, 1995 to May 31,
1996................. 5.26% 0.48% 1.26% 3.97% 77.10% 26,610
June 1, 1994 to May 31,
1995................. 5.25% 0.49% 1.61% 8.55% 139.33% 15,559
June 1, 1993 to May 31,
1994................. 4.92% 0.61% 1.52% 1.94% 84.23% 10,008
B SHARES
June 1, 1998 to
November 30, 1998.... 3.89%(c) 1.35%(c) 2.00%(c) 3.17% 30.85% 19,511
June 1, 1997 to May 31,
1998................. 4.07% 1.35% 2.08% 8.89% 68.27% 16,549
June 1, 1996 to May 31,
1997................. 4.35% 1.34% 2.21% 7.18% 96.68% 11,128
June 1, 1995 to May 31,
1996................. 4.51% 1.23% 2.29% 3.28% 77.10% 8,825
June 1, 1994 to May 31,
1995................. 4.52% 1.21% 2.62% 7.63% 139.33% 5,090
August 6, 1993(g) to
May 31, 1994......... 3.99%(c) 1.31%(c) 2.45%(c) (0.58%)(c) 84.23% 2,485
I SHARES
June 1, 1998 to
November 30, 1998.... 4.66%(c) 0.60%(c) 0.99%(c) 3.56% 30.85% 21,991
June 1, 1997 to May 31,
1998................. 4.84% 0.60% 1.04% 9.71% 68.27% 20,736
June 1, 1996 to May 31,
1997................. 5.12% 0.60% 1.23% 7.98% 96.68% 11,135
June 1, 1995 to May 31,
1996................. 5.24% 0.51% 1.30% 3.97% 77.10% 3,988
June 1, 1994 to May 31,
1995................. 5.29% 0.48% 1.58% 8.44% 139.33% 1,799
August 2, 1993(g) to
May 31, 1994......... 4.90%(c) 0.61%(c) 1.54%(c) 0.29%(c) 84.23% 872
GROWTH BALANCED FUND
- -------------------------------------------------------------------------------------------------------------------
A SHARES
October 14, 1998(g) to
November 30, 1998.... 1.92%(c)(d) 1.09%(c)(d) 1.43%(c)(d) 13.21% N/A(h) 959
B SHARES
October 1, 1998(g) to
November 30, 1998.... 1.40%(c)(d) 1.67%(c)(d) 2.13%(c)(d) 6.61% N/A(h) 1,127
C SHARES
October 1, 1998(g) to
November 30, 1998.... 1.30%(c)(d) 1.68%(c)(d) 1.88%(c)(d) 6.70% N/A(h) 24
I SHARES
June 1, 1998 to
November 30, 1998.... 2.20%(c)(d) 0.93%(c)(d) 1.12%(c)(d) 7.09% N/A(h) 737,860
June 1, 1997 to May 31,
1998................. 2.38%(d) 0.93%(d) 1.14%(d) 21.40% N/A(h) 665,758
June 1, 1996 to May 31,
1997................. 2.47%(d) 0.94%(d) 1.16%(d) 15.81% 24.33% 503,382
November 1, 1995 to May
31, 1996............. 2.66%(c)(d) 0.98%(c)(d) 1.16%(c)(d) 10.87% 38.78% 484,641
November 11, 1994(g) to
October 31, 1995..... 2.63%(c)(d) 0.99%(c)(d) 1.23%(c)(d) 18.38% 41.04% 374,892
</TABLE>
[LOGO]
41
<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 REALIZED RETURN OF VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS CAPITAL SHARE
--------- ---------- -------------- ---------- ------------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... $41.19 $ 0.26 $ 0.58 $(0.26) $(0.11) $ - $41.66
June 1, 1997 to May 31, 1998.......... 33.16 0.22 8.77 (0.24) (0.72) - 41.19
June 1, 1996 to May 31, 1997.......... 27.56 0.57 5.54 (0.51) - - 33.16
May 2, 1996(g) to May 31, 1996........ 26.94 0.07 0.55 - - - 27.56
B SHARES
June 1, 1998 to November 30, 1998..... 41.12 0.11 0.58 (0.12) (0.11) - 41.58
June 1, 1997 to May 31, 1998.......... 33.09 0.53 8.76 (0.54) (0.72) - 41.12
June 1, 1996 to May 31, 1997.......... 27.54 0.36 5.52 (0.33) - - 33.09
May 2, 1996(g) to May 31, 1996........ 26.94 0.02 0.58 - - - 27.54
C SHARES
October 1, 1998(g) to November 30,
1998................................ 37.26 0.27 5.25 - - - 42.78
I SHARES
June 1, 1998 to November 30, 1998..... 41.18 0.26 0.58 (0.26) (0.11) - 41.65
June 1, 1997 to May 31, 1998.......... 33.16 0.52 8.76 (0.54) (0.72) - 41.18
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(g) to October 31,
1995................................ 18.90 0.46 4.66 - - - 24.02
VALUGROWTH STOCK FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... 26.18 0.06 (0.70) (0.07) - - 25.47
June 1, 1997 to May 31, 1998.......... 25.06 0.11 4.71 (0.16) (3.54) - 26.18
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, 1998 to November 30, 1998..... 25.52 (0.04) (0.68) - - - 24.80
June 1, 1997 to May 31, 1998.......... 24.55 (0.07) 4.60 (0.02) (3.54) - 25.52
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(g) to May 31, 1994..... 17.12 0.07 0.23 (0.10) (0.22) - 17.10
I SHARES
June 1, 1998 to November 30, 1998..... 26.15 0.05 (0.69) (0.07) - - 25.44
June 1, 1997 to May 31, 1998.......... 25.03 0.07 4.75 (0.16) (3.54) - 26.15
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(g) to May 31, 1994..... 16.91 0.13 0.46 (0.12) (0.22) - 17.16
DIVERSIFIED EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... 43.06 0.08 1.10 - - - 44.24
June 1, 1997 to May 31, 1998.......... 36.51 (0.05) 9.01 (0.08) (2.33) - 43.06
June 1, 1996 to May 31, 1997.......... 30.56 0.20 6.10 (0.16) (0.19) - 36.51
May 2, 1996(g) to May 31, 1996........ 29.89 0.02 0.65 - - - 30.56
B SHARES
June 1, 1998 to November 30, 1998..... 42.69 (0.04) 1.05 - - - 43.70
June 1, 1997 to May 31, 1998.......... 36.31 0.06 8.92 (0.27) (2.33) - 42.69
June 1, 1996 to May 31, 1997.......... 30.54 0.03 6.00 (0.07) (0.19) - 36.31
May 6, 1996(g) to May 31, 1996........ 29.41 0.02 1.11 - - - 30.54
C SHARES
October 1, 1998(g) to November 30,
1998................................ 38.71 - 5.70 - - - 44.41
I SHARES
June 1, 1998 to November 30, 1998..... 43.06 0.12 1.06 - - - 44.24
June 1, 1997 to May 31, 1998.......... 36.50 0.22 8.94 (0.27) (2.33) - 43.06
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(g) to October 31,
1995................................ 22.21 0.22 5.10 - - - 27.53
</TABLE>
[LOGO]
See Notes to Financial Highlights and Notes to Financial Statements
42
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
ASSETS AT
RATIOS TO AVERAGE NET ASSETS END OF
---------------------------------------------------- PORTFOLIO PERIOD
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S
INCOME (LOSS) EXPENSES EXPENSES(a) RETURN(b) RATE OMITTED)
---------------- ------------ -------------- ----------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
INCOME EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... 1.34%(c)(d) 0.85%(c)(d) 0.90%(c)(d) 2.11% 2.29%(f) 86,900
June 1, 1997 to May 31,
1998................. 1.44%(d) 0.85%(d) 0.96%(d) 28.64% 3.46%(f) 75,144
June 1, 1996 to May 31,
1997................. 1.95% 0.85% 0.93% 22.40% 4.76% 43,708
May 2, 1996(g) to May
31, 1996............. 3.69%(c) 0.91%(c) 1.91%(c) 2.30% 0.69% 31,448
B SHARES
June 1, 1998 to
November 30, 1998.... 0.59%(c)(d) 1.60%(c)(d) 1.89%(c)(d) 1.73% 2.29%(f) 82,771
June 1, 1997 to May 31,
1998................. 0.69%(d) 1.60%(d) 1.96%(d) 27.67% 3.46%(f) 67,385
June 1, 1996 to May 31,
1997................. 1.24% 1.59% 1.96% 21.48% 4.76% 33,626
May 2, 1996(g) to May
31, 1996............. 2.92%(c) 1.72%(c) 2.63%(c) 2.23% 0.69% 17,318
C SHARES
October 1, 1998(g) to
November 30, 1998.... 1.82%(c)(d) 1.60%(c)(d) 1.67%(c)(d) 14.81% 2.29%(f) 12
I SHARES
June 1, 1998 to
November 30, 1998.... 1.33%(c)(d) 0.85%(c)(d) 0.88%(c)(d) 2.11% 2.29%(f) 1,335,857
June 1, 1997 to May 31,
1998................. 1.43%(d) 0.85%(d) 0.92%(d) 28.61% 3.46%(f) 1,214,385
June 1, 1996 to May 31,
1997................. 1.97% 0.85% 0.90% 22.40% 4.76% 425,197
November 1, 1995 to May
31, 1996............. 2.72%(c) 0.86%(c) 1.13%(c) 18.14% 0.69% 230,831
November 11, 1994(g) to
October 31, 1995..... 2.51%(c) 0.85%(c) 1.12%(c) 27.09% 7.03%
VALUGROWTH STOCK FUND
- ----------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... 0.46%(c) 1.00%(c) 1.20%(c) (2.42%) 48.68% 21,496
June 1, 1997 to May 31,
1998................. 0.56% 1.00% 1.26% 21.15% 74.25% 27,771
June 1, 1996 to May 31,
1997................. 0.70% 1.01% 1.39% 23.32% 75.50% 18,830
June 1, 1995 to May 31,
1996................. 0.63% 1.20% 1.42% 21.69% 105.43% 15,232
June 1, 1994 to May 31,
1995................. 1.01% 1.20% 1.43% 10.72% 63.82% 12,138
June 1, 1993 to May 31,
1994................. 1.06% 1.20% 1.43% 1.68% 86.07% 12,922
B SHARES
June 1, 1998 to
November 30, 1998.... (0.31%)(c) 1.75%(c) 2.20%(c) (2.82%) 48.68% 8,557
June 1, 1997 to May 31,
1998................. (0.19%) 1.75% 2.31% 20.30% 74.25% 8,943
June 1, 1996 to May 31,
1997................. (0.07%) 1.76% 2.48% 22.33% 75.50% 6,591
June 1, 1995 to May 31,
1996................. (0.12%) 1.96% 2.54% 20.79% 105.43% 5,130
June 1, 1994 to May 31,
1995................. 0.28% 1.95% 2.51% 9.88% 63.82% 3,569
August 5, 1993(g) to
May 31, 1994......... 0.25%(c) 1.95%(c) 2.55%(c) 2.36%(c) 86.07% 2,218
I SHARES
June 1, 1998 to
November 30, 1998.... 0.45%(c) 1.00%(c) 1.17%(c) (2.43%) 48.68% 428,868
June 1, 1997 to May 31,
1998................. 0.53% 1.00% 1.20% 21.18% 74.25% 609,056
June 1, 1996 to May 31,
1997................. 0.67% 1.01% 1.33% 23.30% 75.50% 180,204
June 1, 1995 to May 31,
1996................. 0.62% 1.20% 1.32% 21.72% 105.43% 156,553
June 1, 1994 to May 31,
1995................. 1.02% 1.20% 1.33% 10.67% 63.82% 136,589
August 2, 1993(g) to
May 31, 1994......... 0.92%(c) 1.20%(c) 1.39%(c) 2.99%(c) 86.07% 113,061
DIVERSIFIED EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... 0.53%(c)(d) 1.00%(c)(d) 1.17%(c)(d) 2.74% N/A(h) 59,286
June 1, 1997 to May 31,
1998................. 0.60%(d) 1.00%(d) 1.25%(d) 26.08% N/A(h) 56,350
June 1, 1996 to May 31,
1997................. 0.81%(d) 1.02%(d) 1.40%(d) 20.75% 48.08% 25,271
May 2, 1996(g) to May
31, 1996............. 1.88%(c)(d) 1.52%(c)(d) 4.06%(c)(d) 2.24% 5.76% 2,699
B SHARES
June 1, 1998 to
November 30, 1998.... (0.22%)(c)(d) 1.75%(c)(d) 2.17%(c)(d) 2.37% N/A(h) 94,335
June 1, 1997 to May 31,
1998................. (0.15%)(d) 1.75%(d) 2.24%(d) 25.13% N/A(h) 81,548
June 1, 1996 to May 31,
1997................. 0.09%(d) 1.76%(d) 2.41%(d) 19.86% 48.08% 33,870
May 6, 1996(g) to May
31, 1996............. 1.24%(c)(d) 2.37%(c)(d) 4.95%(c)(d) 3.84% 5.76% 2,447
C SHARES
October 1, 1998(g) to
November 30, 1998.... (0.13%)(c)(d) 1.74%(c)(d) 1.91%(c)(d) 14.72% N/A(h) 52
I SHARES
June 1, 1998 to
November 30, 1998.... 0.53%(c)(d) 1.00%(c)(d) 1.15%(c)(d) 2.74% N/A(h) 1,485,182
June 1, 1997 to May 31,
1998................. 0.60%(d) 1.00%(d) 1.18%(d) 26.12% N/A(h) 1,520,343
June 1, 1996 to May 31,
1997................. 0.79%(d) 1.02%(d) 1.31%(d) 20.76% 48.08% 1,212,565
November 1, 1995 to May
31, 1996............. 1.00%(c)(d) 1.06%(c)(d) 1.30%(c)(d) 16.38% 5.76% 907,223
November 11, 1994(g) to
October 31, 1995..... 1.01%(c)(d) 1.09%(c)(d) 1.37%(c)(d) 23.95% 10.33% 711,111
</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 REALIZED RETURN OF VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS CAPITAL SHARE
--------- ---------- -------------- ---------- ------------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
GROWTH EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... $35.73 $ - $(0.73) $ - $ - $ - $35.00
June 1, 1997 to May 31, 1998.......... 32.49 (0.08) 6.86 - (3.54) - 35.73
June 1, 1996 to May 31, 1997.......... 29.08 (0.02) 4.06 (0.04) (0.59) - 32.49
May 2, 1996(g) to May 31, 1996........ 28.50 - 0.58 - - - 29.08
B SHARES
June 1, 1998 to November 30, 1998..... 35.23 (0.12) (0.72) - - - 34.39
June 1, 1997 to May 31, 1998.......... 32.28 (0.21) 6.74 (0.04) (3.54) - 35.23
June 1, 1996 to May 31, 1997.......... 29.07 (0.13) 3.93 - (0.59) - 32.28
May 6, 1996(g) to May 31, 1996........ 28.18 - 0.89 - - - 29.07
C SHARES
October 1, 1998(g) to November 30,
1998................................ 30.66 (0.02) 4.60 - - - 35.24
I SHARES
June 1, 1998 to November 30, 1998..... 35.72 - (0.72) - - - 35.00
June 1, 1997 to May 31, 1998.......... 32.48 (0.04) 6.86 (0.04) (3.54) - 35.72
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(g) to October 31,
1995................................ 22.28 (0.02) 4.71 - - - 26.97
LARGE COMPANY GROWTH FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
October 6, 1998(g) to November 30,
1998................................ 38.48 (0.02) 11.22 - - - 49.68
B SHARES
October 1, 1998(g) to November 30,
1998................................ 39.80 (0.06) 7.07 - - - 46.81
I SHARES
June 1, 1998 to November 30, 1998..... 39.94 (0.22) 7.07 - - - 46.79
June 1, 1997 to May 31, 1998.......... 32.63 (0.11) 10.20 - (2.78) - 39.94
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(g) to October 31,
1995................................ 18.50 (0.05) 5.14 - - - 23.59
DIVERSIFIED SMALL CAP FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
October 6, 1998(g) to November 30,
1998................................ 7.77 - 1.50 - - - 9.27
B SHARES
October 1, 1998(g) to November 30,
1998................................ 7.97 (0.01) 0.79 - - - 8.75
I SHARES
June 1, 1998 to November 30, 1998..... 10.52 - (1.77) - - - 8.75
December 31, 1997(g) to May 31,
1998................................ 10.00 - 0.52 - - - 10.52
SMALL COMPANY STOCK FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... 12.00 0.01 (2.74) - - - 9.27
June 1, 1997 to May 31, 1998.......... 13.95 (0.07) 1.09 - (2.90) (0.07) 12.00
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(g) to May 31,
1994................................ 10.00 0.07 (0.15) (0.08) - - 9.84
B SHARES
June 1, 1998 to November 30, 1998..... 11.56 (0.05) (2.61) - - - 8.90
June 1, 1997 to May 31, 1998.......... 13.63 (0.11) 1.01 - (2.90) (0.07) 11.56
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(g) to May 31,
1994................................ 10.00 0.06 (0.17) (0.07) - - 9.82
I SHARES
June 1, 1998 to November 30, 1998..... 11.93 - (2.71) - - - 9.22
June 1, 1997 to May 31, 1998.......... 13.88 (0.09) 1.11 - (2.90) (0.07) 11.93
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(g) to May 31,
1994................................ 10.00 0.08 (0.20) (0.08) - - 9.80
</TABLE>
[LOGO]
See Notes to Financial Highlights and Notes to Financial Statements
44
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
-------------------------------------------- NET ASSETS AT
NET PORTFOLIO END OF PERIOD
INVESTMENT NET GROSS TOTAL TURNOVER (000'S
INCOME (LOSS) EXPENSES EXPENSES(a) RETURN(b) RATE OMITTED)
------------- ------------ ------------- -------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
GROWTH EQUITY FUND
- -------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... (0.02%)(c)(d) 1.25%(c)(d) 1.37%(c)(d) (2.04%) N/A(h) $ 17,597
June 1, 1997 to May 31,
1998................. (0.11%)(d) 1.25%(d) 1.47%(d) 22.55% N/A(h) 21,567
June 1, 1996 to May 31,
1997................. (0.12%)(d) 1.30%(d) 1.95%(d) 14.11% 9.06% 14,146
May 2, 1996(g) to May
31, 1996............. 0.34%(c)(d) 2.08%(c)(d) 6.40%(c)(d) 2.04% 7.39% 3,338
B SHARES
June 1, 1998 to
November 30, 1998.... (0.79%)(c)(d) 2.00%(c)(d) 2.37%(c)(d) (2.38%) N/A(h) 17,443
June 1, 1997 to May 31,
1998................. (0.85%)(d) 2.00%(d) 2.50%(d) 21.63% N/A(h) 16,615
June 1, 1996 to May 31,
1997................. (0.82%)(d) 2.04%(d) 3.02%(d) 13.28% 9.06% 8,713
May 6, 1996(g) to May
31, 1996............. (0.40%)(c)(d) 2.92%(c)(d) 7.44%(c)(d) 3.16% 7.39% 703
C SHARES
October 1, 1998(g) to
November 30, 1998.... (1.25%)(c)(d) 2.00%(c)(d) 2.12%(c)(d) (1.60%) N/A(h) 36
I SHARES
June 1, 1998 to
November 30, 1998.... (0.02%)(c)(d) 1.25%(c)(d) 1.35%(c)(d) (2.02%) N/A(h) 924,512
June 1, 1997 to May 31,
1998................. (0.11%)(d) 1.25%(d) 1.41%(d) 22.52% N/A(h) 1,033,251
June 1, 1996 to May 31,
1997................. (0.09%)(d) 1.30%(d) 1.84%(d) 14.11% 9.06% 895,420
November 1, 1995 to May
31, 1996............. 0.01%(c)(d) 1.35%(c)(d) 1.85%(c)(d) 15.83% 7.39% 735,728
November 11, 1994(g) to
October 31, 1995..... (0.11%)(c)(d) 1.38%(c)(d) 1.92%(c)(d) 21.10% 8.90% 564,004
LARGE COMPANY GROWTH FUND
- -------------------------------------------------------------------------------------------------------------------
A SHARES
October 6, 1998(g) to
November 30, 1998.... (0.75%)(c)(d) 1.19%(c)(d) 1.43%(c)(d) 29.11% 10.33%(f) 3,639
B SHARES
October 1, 1998(g) to
November 30, 1998.... (1.40%)(c)(d) 1.74%(c)(d) 2.09%(c)(d) 17.61% 10.33%(f) 2,678
I SHARES
June 1, 1998 to
November 30, 1998.... (0.51%)(c)(d) 1.00%(c)(d) 1.05%(c)(d) 17.15% 10.33%(f) 357,725
June 1, 1997 to May 31,
1998................. (0.36%)(d) 1.00%(d) 1.08%(d) 32.29% 13.03%(f) 232,499
June 1, 1996 to May 31,
1997................. (0.18%) 0.99% 1.09% 21.93% 24.37% 131,768
November 1, 1995 to May
31, 1996............. (0.30%)(c) 1.00%(c) 1.13%(c) 15.40% 16.93% 82,114
November 11, 1994(g) to
October 31, 1995..... (0.23%)(c) 1.00%(c) 1.20%(c) 27.51% 31.60% 63,567
DIVERSIFIED SMALL CAP FUND
- -------------------------------------------------------------------------------------------------------------------
A SHARES
October 6, 1998(g) to
November 30, 1998.... (0.11%)(c)(d) 1.38%(c)(d) 2.06%(c)(d) 19.31% N/A(h) 2,580
B SHARES
October 1, 1998(g) to
November 30, 1998.... (0.71%)(c)(d) 1.94%(c)(d) 2.72%(c)(d) 9.79% N/A(h) 186
I SHARES
June 1, 1998 to
November 30, 1998.... (0.02%)(c)(d) 1.20%(c)(d) 1.68%(c)(d) 16.83% N/A(h) 34,125
December 31, 1997(g) to
May 31, 1998......... 0.25%(c)(d) 1.21%(c)(d) 2.70%(c)(d) 5.20% N/A(h) 12,551.00
SMALL COMPANY STOCK FUND
- -------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... (0.01%)(c)(d) 1.20%(c)(d) 1.41%(c)(d) (22.75%) 63.71%(f) 5,361
June 1, 1997 to May 31,
1998................. (0.50%)(d) 1.20%(d) 1.48%(d) 8.07% 166.16%(f) 8,426
June 1, 1996 to May 31,
1997................. (0.38%) 1.19% 1.67% 6.34% 210.19% 7,355
June 1, 1995 to May 31,
1996................. 0.03% 1.21% 1.87% 38.22% 134.53% 5,426
June 1, 1994 to May 31,
1995................. 1.14% 0.53% 2.32% 10.19% 68.09% 1,540
December 31, 1993(g) to
May 31, 1994......... 1.95%(c) 0.22%(c) 10.66%(c) (1.98%)(c) 14.98% 265
B SHARES
June 1, 1998 to
November 30, 1998.... (0.74%)(c)(d) 1.95%(c)(d) 2.41%(c)(d) (23.01%) 63.71%(f) 4,164
June 1, 1997 to May 31,
1998................. (1.26%)(d) 1.95%(d) 2.53%(d) 7.29% 166.16%(f) 5,799
June 1, 1996 to May 31,
1997................. (1.13%) 1.94% 2.73% 5.46% 210.19% 5,125
June 1, 1995 to May 31,
1996................. 0.74% 1.96% 2.96% 37.32% 134.53% 4,125
June 1, 1994 to May 31,
1995................. 0.38% 1.27% 3.56% 9.31% 68.09% 963
December 31, 1993(g) to
May 31, 1994......... 1.27%(c) 0.98%(c) 20.87%(c) (2.77%)(c) 14.98% 195
I SHARES
June 1, 1998 to
November 30, 1998.... (0.03%)(c)(d) 1.20%(c)(d) 1.40%(c)(d) (22.72%) 63.71%(f) 58,803
June 1, 1997 to May 31,
1998................. (0.53%)(d) 1.20%(d) 1.37%(d) 8.12% 166.16%(f) 112,713
June 1, 1996 to May 31,
1997................. (0.38%) 1.19% 1.56% 6.30% 210.19% 161,995
June 1, 1995 to May 31,
1996................. 0.05% 1.21% 1.60% 38.30% 134.53% 125,986
June 1, 1994 to May 31,
1995................. 1.14% 0.52% 1.82% 10.13% 68.09% 54,240
December 31, 1993(g) to
May 31, 1994......... 2.03%(c) 0.20%(c) 4.33%(c) (2.93%)(c) 14.98% 9,251
</TABLE>
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45
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) (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 REALIZED RETURN OF VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS CAPITAL SHARE
--------- ---------- -------------- ---------- ------------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... $23.60 $(0.03) $(3.63) $ - $ - $ - $19.94
June 1, 1997 to May 31, 1998.......... 19.83 (0.06) 4.36 - (0.53) - 23.60
October 9, 1996(g) to May 31, 1997.... 17.39 (0.01) 2.46 - (0.01) - 19.83
B SHARES
June 1, 1998 to November 30, 1998..... 23.32 (0.17) (3.53) - - - 19.62
June 1, 1997 to May 31, 1998.......... 19.75 (0.10) 4.20 - (0.53) - 23.32
November 8, 1996(g) to May 31, 1997... 17.41 (0.05) 2.40 - (0.01) - 19.75
I SHARES
June 1, 1998 to November 30, 1998..... 23.61 (0.03) (3.64) - - - 19.94
June 1, 1997 to May 31, 1998.......... 19.84 (0.06) 4.36 - (0.53) - 23.61
August 15, 1996(g) to May 31, 1997.... 16.26 (0.01) 3.60 - (0.01) - 19.84
INTERNATIONAL FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to November 30, 1998..... 23.84 0.05 (1.65) - (0.18) - 22.06
June 1, 1997 to May 31, 1998.......... 21.66 (0.11) 2.36 (0.07) - - 23.84
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(g) to October 31,
1995................................ 16.50 0.01 1.46 - - - 17.97
B SHARES
June 1, 1998 to November 30, 1998..... 23.70 - (1.67) - (0.18) - 21.85
June 1, 1997 to May 31, 1998.......... 21.55 0.03 2.32 (0.20) - - 23.70
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(g) to October 31, 1995... 17.20 0.01 0.70 - - - 17.91
I SHARES
June 1, 1998 to November 30, 1998..... 23.85 0.07 (1.67) - (0.18) - 22.07
June 1, 1997 to May 31, 1998.......... 21.67 0.08 2.30 (0.20) - - 23.85
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(g) to October 31,
1995................................ 17.28 0.09 0.62 - - - 17.99
</TABLE>
[LOGO]
See Notes to Financial Highlights and Notes to Financial Statements
46
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
--------------------------------------------- PORTFOLIO NET ASSETS AT
NET INVESTMENT NET GROSS TOTAL TURNOVER END OF PERIOD
INCOME (LOSS) EXPENSES EXPENSES(a) RETURN(b) RATE (000'S OMITTED)
-------------- ------------ ------------- --------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... (0.41%)(c)(d) 1.25%(c)(d) 1.36%(c)(d) (15.51%) 22.97%(f) $ 6,415
June 1, 1997 to May 31,
1998................. (0.43%)(d) 1.26%(d) 1.86%(d) 21.97% 54.98%(f) 6,870
October 9, 1996(g) to
May 31, 1997......... (0.18%)(c)(d) 1.25%(c)(d) 10.51%(c)(d) 11.37% 34.45%(f) 522
B SHARES
June 1, 1998 to
November 30, 1998.... (1.16%)(c)(d) 2.00%(c)(d) 2.36%(c)(d) (15.87%) 22.97%(f) 5,013
June 1, 1997 to May 31,
1998................. (1.21%)(d) 2.01%(d) 3.05%(d) 21.03% 54.98%(f) 6,140
November 8, 1996(g) to
May 31, 1997......... (0.99%)(c)(d) 2.06%(c)(d) 27.27%(c)(d) 13.53% 34.45%(f) 158
I SHARES
June 1, 1998 to
November 30, 1998.... (0.41%)(c)(d) 1.25%(c)(d) 1.34%(c)(d) (15.54%) 22.97%(f) 244,145
June 1, 1997 to May 31,
1998................. (0.40%)(d) 1.25%(d) 1.38%(d) 21.95% 54.98%(f) 284,828
August 15, 1996(g) to
May 31, 1997......... (0.16%)(c)(d) 1.25%(c)(d) 1.89%(c)(d) 11.42% 34.45%(f) 77,174
INTERNATIONAL FUND
- --------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1998 to
November 30, 1998.... (0.65%)(c)(d) 1.50%(c)(d) 1.63%(c)(d) (6.60%) N/A(h) 3,635
June 1, 1997 to May 31,
1998................. 0.44%(d) 1.47%(d) 1.75%(d) 11.20% N/A(h) 3,342
June 1, 1996 to May 31,
1997................. 0.42%(d) 1.43%(d) 1.72%(d) 10.33% 48.23%(f) 2,240
November 1, 1995 to May
31, 1996............. 0.92%(c)(d) 1.50%(c)(d) 2.51%(c)(d) 12.31% 14.12%(f) 1,080
April 12, 1995(g) to
October 31, 1995..... 0.26%(c)(d) 1.32%(c)(d) 20.95%(c)(d) 8.91% 29.41%(f) 216
B SHARES
June 1, 1998 to
November 30, 1998.... (0.06%)(c)(d) 2.25%(c)(d) 2.63%(c)(d) (6.93%) N/A(h) 1,953
June 1, 1997 to May 31,
1998................. (0.29%)(d) 2.22%(d) 2.84%(d) 10.39% N/A(h) 2,245
June 1, 1996 to May 31,
1997................. (0.34%)(d) 2.18%(d) 2.76%(d) 9.44% 48.23%(f) 1,667
November 1, 1995 to May
31, 1996............. (0.02%)(c)(d) 2.25%(c)(d) 3.11%(c)(d) 11.79% 14.12%(f) 995
May 12, 1995(g) to
October 31, 1995..... 0.17%(c)(d) 1.27%(c)(d) 14.57%(c)(d) 4.30% 29.41%(f) 395
I SHARES
June 1, 1998 to
November 30, 1998.... (0.68%)(c)(d) 1.50%(c)(d) 1.60%(c)(d) (6.60%) N/A(h) 261,745
June 1, 1997 to May 31,
1998................. 0.45%(d) 1.47%(d) 1.50%(d) 11.19% N/A(h) 279,667
June 1, 1996 to May 31,
1997................. 0.40%(d) 1.43%(d) 1.44%(d) 10.27% 48.23%(f) 228,552
November 1, 1995 to May
31, 1996............. 0.60%(c)(d) 1.50%(c)(d) 1.52%(c)(d) 12.31% 14.12%(f) 143,643
November 11, 1994(g) to
October 31, 1995..... 0.54%(c)(d) 1.50%(c)(d) 1.66%(c)(d) 4.11% 29.41%(f) 91,401
</TABLE>
[LOGO]
47
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
(a) 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.
(b) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
period shown (Note 3).
(c) Annualized.
(d) Includes expenses allocated from the Core Portfolio(s) in which the Fund
invests.
(e) Adjusted for a five to one stock split.
(f) Portfolio turnover rate represents the activity from the Fund's investment
in a single Core Portfolio.
(g) Commencement of operations.
(h) Portfolio turnover rate is not applicable as the Fund invested in more than
one Core Portfolio.
[LOGO]
48
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Norwest Advantage Funds (the "Trust") is organized as a Delaware business trust
and is registered as an open-end management investment company. The Trust
currently has thirty-nine separate investment portfolios. These financial
statements relate to seventeen of those portfolios (individually, 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 respective dates of commencement of operations are as
follows:
<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES
----------------- ----------------- -----------------
<S> <C> <C> <C>
Stable Income Fund...................... May 2, 1996 May 17, 1996 N/A
Intermediate Government Income Fund..... May 2, 1996 May 17, 1996 N/A
Income Fund............................. June 9, 1987 August 5, 1993 N/A
Total Return Bond Fund.................. December 31, 1993 December 31, 1993 N/A
Tax-Free Income Fund.................... August 1, 1989 August 6, 1993 N/A
Colorado Tax-Free Fund.................. June 1, 1993 August 2, 1993 N/A
Minnesota Tax-Free Fund................. January 12, 1988 August 6, 1993 N/A
Growth Balanced Fund.................... October 14, 1998 October 1, 1998 October 1, 1998
Income Equity Fund...................... May 2, 1996 May 2, 1996 October 1, 1998
ValuGrowth Stock Fund................... January 8, 1988 August 5, 1993 N/A
Diversified Equity Fund................. May 2, 1996 May 6, 1996 October 1, 1998
Growth Equity Fund...................... May 2, 1996 May 6, 1996 October 1, 1998
Large Company Growth Fund............... October 16, 1998 October 1, 1998 N/A
Diversified Small Cap Fund.............. October 16, 1998 October 1, 1998 N/A
Small Company Stock Fund................ December 31, 1993 December 31, 1993 N/A
Small Cap Opportunities Fund............ October 9, 1996 November 8, 1996 N/A
International Fund...................... April 12, 1995 May 12, 1995 N/A
</TABLE>
Each share of each class represents an undivided proportionate interest in that
respective Fund. A Shares are sold with a front-end sales charge to the general
public. B and C Shares are sold to the general public with a contingent deferred
sales charge imposed on most redemptions made within six years and one year of
purchase, respectively. After a specified number of years, B Shares
automatically convert to A Shares. A Shares of certain Funds and B and C Shares
incur distribution expenses. I Shares, 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.
MASTER-FEEDER AND RELATED ARRANGEMENTS--Stable Income Fund, Total Return Bond
Fund, Income Equity Fund, Large Company Growth Fund and Small Company Stock Fund
each seek to achieve its investment objective by investing all its investable
assets in a separate diversified portfolio (individually, a "Portfolio" and,
collectively, the "Portfolios"), which has the same investment objectives and
substantially similar investment policies as the Fund. The Portfolios are
separate diversified investment portfolios of Core Trust (Delaware) ("Core
Trust"), a registered, open-end management investment company. Small Cap
Opportunities Fund seeks to achieve its investment objective by investing all
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. These are commonly referred to as
master-feeder arrangements. Growth Balanced Fund, Diversified Equity Fund,
Growth Equity Fund, Diversified Small Cap 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 (collectively, the "Core
Portfolios). Each Core Portfolio directly acquires portfolio securities, and a
Fund investing in the Core Portfolio acquires an indirect interest in those
securities. The Funds account for their investment in a Core Portfolio as a
partnership investment, and record daily their share of the Core Portfolio's
income, expenses and realized and unrealized gain and loss. The financial
statements of the Core Portfolios are in this report and should be read in
conjunction with the Funds' 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
during the fiscal period. Actual results could differ from those estimates. The
following summarizes the significant accounting policies of the Funds:
SECURITY VALUATION--Short-term securities that mature in sixty 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 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. Valuation of securities held in the Core Portfolios is
discussed in the Notes to Financial Statements of the Core Portfolios.
SECURITY TRANSACTIONS AND INTEREST AND DIVIDEND INCOME--Investment transactions
are accounted for on the trade date. Dividend income is recorded on the
ex-dividend date. With respect to dividends on foreign securities, certain
instances may arise where a Fund is not notified of a dividend until after the
ex-dividend date has passed. In these instances, a dividend is recorded as soon
as the Fund is informed of the dividend. Dividend income is recorded net of
[LOGO]
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
unrecoverable withholding tax. Interest income, including amortization of
premium or accretion of discount, is recorded as earned. Identified cost of
investments sold is used to determine realized gains and losses for both
financial statement and federal income tax purposes. Foreign dividend and
interest income amounts and realized capital gains and losses are converted to
U.S. dollars using foreign exchange rates in effect at the date of the
transactions.
DISTRIBUTIONS TO SHAREHOLDERS--Dividends to shareholders of net investment
income, if any, are declared daily and paid monthly by Income Fund, Total Return
Bond Fund, Tax-Free Income Fund, Colorado 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 Stock Fund and Small Company Stock Fund; and are declared and paid
annually by Growth Balanced Fund, Diversified Equity Fund, Growth Equity Fund,
Large Company Growth Fund, Diversified Small Cap Fund, Small Cap Opportunities
Fund and International Fund. Net capital gains, 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. The timing and character of
distributions made during the period from net investment income or net realized
gains may differ from their ultimate characterization for federal income tax
purposes.
PREMIUM AMORTIZATION AND DISCOUNT ACCRETION--Except for Stable Income Fund,
Tax-Free Income Fund, Colorado Tax-Free Fund and Minnesota Tax-Free Fund, the
premium or discount on the purchase of fixed income investments with a maturity
greater than sixty days is not amortized or accreted.
FEDERAL TAXES--Each Fund intends to qualify, and continue to qualify, each year
as a regulated investment company and distribute all its taxable income. In
addition, by distributing in each calendar year substantially all 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 of shares are allocated to that class. Expenses
of the Funds investing in the Portfolios and Schroder Core include their pro
rata share of expenses from the Portfolios and Schroder Core.
ORGANIZATION 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 Fund's operations.
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 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 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
Fund.
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISERS--The investment adviser of each Fund and each Core Portfolio
(other than Schroder U.S. Smaller Companies Portfolio, Schroder EM Core
Portfolio of Schroder Core and International Portfolio of Core Trust) is 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").
Norwest is a subsidiary of Wells Fargo & Company. The Adviser receives an annual
advisory fee from each Fund based on a percentage of average daily net assets of
each Fund. Refer to Exhibit A of Notes to Financial Statements for a detail
listing of the fees.
Pursuant to its investment advisory agreements with each Fund or its
administrative services agreement with Small Cap Opportunities Fund and
International Fund, Norwest is obligated to reimburse each Fund for certain
operating expenses (exclusive of interest, taxes, brokerage fees, fees and other
expenses paid pursuant to any distribution plan and organization expenses, all
to the extent permitted by applicable state law or regulation) which in any year
exceed the limits prescribed by any state in which the Fund's shares are
qualified for sale. The Funds' annual expenses are estimated and accrued daily
and any related reimbursements are made monthly.
The investment adviser of Schroder U.S. Smaller Companies Portfolio, Schroder EM
Core Portfolio and International Portfolio is Schroder Capital Management
International Inc. ("Schroder").
Pursuant to separate agreements between the Adviser, the Trust and each of
Crestone Capital Management, Inc. ("Crestone"), Galliard Capital Management,
Inc. ("Galliard"), Peregrine Capital Management, Inc. ("Peregrine"), and Smith
Asset Management Group L.P. ("Smith") (collectively, the "Subadvisers"), the
Adviser has delegated certain of its advisory responsibilities to these
Subadvisers and pays each Subadviser a fee.
Each Fund investing its assets in one or more Core Portfolios may withdraw its
investments from its corresponding Core Portfolio(s) at any time if the Board
determines that it is in the best interests of the Fund to do so. Accordingly,
each Fund that invests in a Core Portfolio managed by the Adviser has retained
the Adviser as its investment adviser. Similarly, in the event that a Fund
withdraws its investment from a Core Portfolio advised by Schroder or a
[LOGO]
50
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH
AFFILIATES (CONTINUED)
Subadviser, the Fund has retained Schroder and that Subadviser as an investment
subadviser. Under these "dormant" investment advisory arrangements, none of
Norwest, Schroder or any Subadviser receives any advisory fees with respect to a
Fund as long as the Fund remains completely invested in Core Portfolio(s) or any
other investment companies.
ADMINISTRATION AND DISTRIBUTION--Forum Financial Services, Inc. ("FFSI")
supervises the overall management of the Trust other than investment advisory
services. Forum Administrative Services, LLC ("FAdS") is the administrator to
the Trust. For their services, FFSI and FAdS each currently receives a fee with
respect to Intermediate Government Income Fund, Income Fund, each Tax-Free Fixed
Income Fund, ValuGrowth Stock Fund and International Fund at an annual rate of
0.05% of the Fund's average daily net assets, and with respect to each other
Fund at an annual rate of 0.025% of the Fund's average daily net assets.
FAdS also serves as an administrator of the Core Portfolios (except Schroder
U.S. Smaller Companies Portfolio and Schroder EM Core Portfolio ("Schroder
Portfolios")) and provides services to the Core Portfolios that are similar to
those provided to the Funds by FFSI and FAdS. For its services, FAdS receives a
fee with respect to each Core Portfolio (other than Schroder Portfolios) at an
annual rate of 0.05% of the Portfolio's average daily net assets (0.15% in the
case of International Portfolio). Schroder Fund Advisors Inc. ("Schroder
Advisors") serves as the administrator, and FAdS serves as the subadministrator,
of Schroder Portfolios. Schroder Advisors and FAdS provide certain management
and administrative services necessary for Schroder Portfolios' operations, other
than the administrative services provided to the Schroder Portfolios by
Schroder. For their services, Schroder Advisors receives no fee from Schroder
U.S. Smaller Companies Portfolio and 0.10% from Schroder EM Core Portfolio, and
FAdS receives a fee at an annual rate of 0.075% of each Schroder Portfolio's
average daily net assets subject to a $25,000 minimum.
In addition, pursuant to a separate agreement, Norwest receives a fee with
respect to Small Cap Opportunities Fund and International Fund at an annual rate
of 0.25% of the Funds' average daily net assets. Under this agreement, Norwest
is responsible for compiling data and preparing communications between the Fund
and its shareholders, maintaining requisite information flows between the Fund
and Schroder and monitoring and reporting to the Board on the performance of the
applicable Portfolio. No fees are payable under this agreement if the Fund is
not completely invested in a Portfolio.
Forum Accounting Services, LLC ("FAcS") provides portfolio accounting services
to each Fund and to each Core Portfolio.
FFSI also acts as the distributor of the Shares but receives no fees for these
services. FAdS and FAcS are affiliates of FFSI.
TRANSFER AGENT AND 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. Refer to Exhibit A of Notes to the
Financial Statements for a detail listing of the fees and related waivers and
reimbursements.
DISTRIBUTION PLAN--The Trust has adopted a Distribution Plan (the "Plan") with
respect to the A Shares of Large Company Growth Fund, Growth Balanced Fund and
Diversified Small Cap Fund and the B and C Shares of each Fund currently
offering B and C 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 0.10% of the average daily net assets attributable to A Shares
and 0.75% of the average daily net assets attributable to B and C Shares. The
Plan also authorizes payment of an annual maintenance fee of 0.25% of the
average daily net assets attributable to B Shares. No Fund incurred any
maintenance fees during the six months ended November 30, 1998. The distribution
payments, with respect to B and C shares, are used to reimburse the distributor
for commissions to brokers and interest on each Fund's outstanding balance of
unreimbursed distribution charges. The Plan may be terminated by vote of a
majority of a Share class' 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 of B Shares and C Shares 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, 1998 were as follows: Stable Income Fund,
$11,892; Intermediate Government Income Fund, $110,900; Income Fund, $129,409;
Total Return Bond Fund, $40,614; Tax-Free Income Fund, $185,869; Colorado
Tax-Free Fund, $93,063; Minnesota Tax-Free Fund, $332,168; Growth Balanced Fund
B Shares, $44,844; Growth Balanced Fund C Shares, $64; Income Equity Fund B
Shares, $2,207,930; Income Equity Fund C Shares, $11; ValuGrowth Stock Fund,
$102,889; Diversified Equity Fund B Shares, $2,868,362; Diversified Equity Fund
C Shares, $570; Growth Equity Fund B Shares, $533,417; Growth Equity Fund C
Shares, $413; Large Company Growth Fund B Shares, $86,914; Diversified Small Cap
Fund B Shares, $4,382; Small Company Stock Fund, $108,255; Small Cap
Opportunities Fund, $238,918; and International Fund, $55,503.
[LOGO]
51
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
NOTE 4. SECURITIES TRANSACTIONS
The following table presents the cost of purchases and proceeds from sales
(including maturities) of securities (excluding short-term investments ) during
the six months ended November 30, 1998, as well as the federal tax cost basis of
investments, related gross unrealized appreciation and depreciation for federal
income tax purposes, and the capital loss carryovers (which expire in various
years through 2006) available to offset future capital gains, as of November 30,
1998:
<TABLE>
<CAPTION>
UNREALIZED
COST OF PROCEEDS --------------------------------------------- TAX
PURCHASES FROM SALES APPRECIATION (DEPRECIATION) NET COST BASIS
------------ ------------ ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Stable Income Fund............ $ - $ - $ 906,970 $ - $ 906,970 $ 179,452,228
Intermediate Government Income
Fund......................... 261,547,608 260,391,810 14,474,871 (583,678) 13,891,193 433,155,536
Income Fund................... 302,366,435 239,151,655 10,818,766 (1,155,921) 9,662,845 349,299,631
Total Return Bond Fund........ - - 896,516 - 896,516 107,766,210
Tax-Free Income Fund.......... 179,128,173 134,257,889 20,610,702 - 20,610,702 361,588,954
Colorado Tax-Free Fund........ 43,884,414 34,375,940 4,656,118 (11,015) 4,645,103 89,506,434
Minnesota Tax-Free Fund....... - - 3,854,091 (2,648) 3,851,443 74,626,030
Growth Balanced Fund.......... - - 198,958,439 - 198,958,439 544,701,195
Income Equity Fund............ - - 362,143,178 - 362,143,178 1,142,125,598
ValuGrowth Stock Fund......... 211,598,216 349,545,534 162,009,065 (21,246,012) 140,763,053 311,672,405
Diversified Equity Fund....... - - 647,051,921 - 647,051,921 992,723,406
Growth Equity Fund............ - - 265,175,622 - 265,175,622 694,350,199
Large Company Growth Fund..... - - 120,928,046 - 120,928,046 243,034,095
Diversified Small Cap Fund.... - - 993,610 - 993,610 35,535,893
Small Company Stock Fund...... - - - (2,169,094) (2,169,094) 70,693,745
Small Cap Opportunities
Fund......................... - - 11,970,879 - 11,970,879 244,328,378
International Fund............ - - 28,059,556 - 28,059,556 240,213,938
<CAPTION>
CAPITAL
LOSS
CARRYOVERS
------------
<S> <C>
Stable Income Fund............ $ 7,054,248
Intermediate Government Income
Fund......................... 25,886,831
Income Fund................... 12,447,429
Total Return Bond Fund........ -
Tax-Free Income Fund.......... 2,054,098
Colorado Tax-Free Fund........ 329,272
Minnesota Tax-Free Fund....... 97,056
Growth Balanced Fund.......... -
Income Equity Fund............ -
ValuGrowth Stock Fund......... -
Diversified Equity Fund....... -
Growth Equity Fund............ -
Large Company Growth Fund..... -
Diversified Small Cap Fund.... -
Small Company Stock Fund...... -
Small Cap Opportunities
Fund......................... -
International Fund............ -
</TABLE>
NOTE 5. PORTFOLIO SECURITIES LOANED
As of November 30, 1998, certain Funds had loaned securities in return for
securities and cash collateral, which was invested in various short-term fixed
income securities. 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>
Intermediate Government Income
Fund............................... $ 45,446,182 $ 46,433,035
Income Fund......................... 49,652,450 50,931,797
ValuGrowth Stock Fund............... 59,783815 73,133,771
</TABLE>
NOTE 6. CONCENTRATION OF CREDIT RISK
Colorado Tax-Free Fund and Minnesota Tax-Free Fund invest substantially all
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.
NOTE 7. COMMON TRUST FUND CONVERSIONS
In September 1997, Income Equity Fund, ValuGrowth Stock Fund, Small Company
Stock Fund and Small Company Growth Fund, and in October 1998, Income Fund,
Income Equity Fund and International Fund, in exchange for portfolio securities
of certain common trust funds managed by Norwest, issued I Shares to the common
trust funds. Immediately after the conversions, the common trust funds
distributed the shares to the investors of the common trust funds and ceased
operations.
[LOGO]
52
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
EXHIBIT A OF NOTES TO FINANCIAL STATEMENTS--EXPENSE INFORMATION
<TABLE>
<CAPTION>
FEES WAIVED BY
FEES/RATES ------------------------------------
-------------------------------- CUSTODIAN
ASSET CUSTODIAN AND
ALLOCATION/ AND TRANSFER TRANSFER TOTAL FEES
ADVISORY AGENT ADVISER AGENT FFSI/FAdS WAIVED
---------------- ------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Stable Income Fund...................... - 0.25% $ - $ 53,937 $ 4,888 $ 58,825
Intermediate Government Income Fund..... 0.33% 0.25% - - 96,624 96,624
Income Fund............................. 0.50% 0.26%(c) - 253,093 16,840 269,933
Total Return Bond Fund.................. - 0.25% - 97,658 5,044 102,702
Tax-Free Income Fund.................... 0.50% 0.26%(c) 19,305 438,676 109,597 567,578
Colorado Tax-Free Fund.................. 0.50%(a) 0.27%(c) 34,827 103,387 31,754 169,968
Minnesota Tax-Free Fund................. 0.50%(a) 0.27%(c) 38,092 93,838 39,834 171,764
Growth Balanced Fund.................... 0.25% 0.25% 325,925 46,207 137,256 509,388
Income Equity Fund...................... - 0.25% - 61,976 104,626 166,602
ValuGrowth Stock Fund................... 0.80%(b) 0.26%(c) - 272,826 214,251 487,077
Diversified Equity Fund................. 0.25% 0.25% 546,305 207,792 373,850 1,127,947
Growth Equity Fund...................... 0.25% 0.25% - 209,574 180,801 390,375
Large Company Growth Fund............... - 0.25% - 26,512 31,703 58,215
Diversified Small Cap Fund.............. 0.25% 0.25% 25,880 15,798 5,216 46,894
Small Company Stock Fund................ - 0.25% - 47,431 24,434 71,865
Small Cap Opportunities Fund............ - 0.25% - 81,111 46,113 127,224
International Fund...................... 0.25% 0.25% - - 99,820 99,820
</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]
53
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
STABLE INCOME FUND
- -----------------------------------------------------------------
N/A Stable Income Portfolio of Core Trust
(Delaware)(f) $ 180,359,198
---------------
TOTAL INVESTMENTS (100.0%) (COST $179,452,228) $ 180,359,198
---------------
---------------
- -----------------------------------------------------------------
INTERMEDIATE GOVERNMENT INCOME FUND
- -----------------------------------------------------------------
DISCOUNT NOTES (2.2%)
10,000,000 FHLMC, 5.00%, 12/1/98 (cost $10,000,000) $ 10,000,000
---------------
GOVERNMENT AGENCY BONDS & NOTES (20.7%)
FHLB (7.4%)
10,000,000 5.13%, 9/15/03 10,047,700
5,000,000 7.59%, 3/10/05 5,638,000
9,000,000 6.41%, 10/11/05 9,631,710
7,000,000 6.44%, 12/12/11 7,664,580
---------------
TOTAL FHLB (COST $31,620,541) 32,981,990
---------------
FHLMC (3.5%)
4,000,000 8.07%, 1/27/05 4,601,200
10,000,000 7.10%, 4/10/07 11,166,100
---------------
TOTAL FHLMC (COST $15,340,950) 15,767,300
---------------
FNMA (7.5%)
10,000,000 6.50%, 7/16/07(d) 10,761,400
21,500,000 6.00%, 5/15/08(d) 22,639,930
---------------
TOTAL FNMA (COST $32,511,407) 33,401,330
---------------
SLMA (0.3%)
1,000,000 SLMA, 9.15%, 12/1/04 (cost $1,171,875) 1,208,820
---------------
OTHER (2.0%)
8,500,000 TVA, 6.00%, 3/15/13 (cost $8,909,530) 8,890,150
---------------
TOTAL GOVERNMENT AGENCY BONDS & NOTES (COST $89,554,303)
92,249,590
---------------
MORTGAGE BACKED SECURITIES (24.7%)
FAMC (5.3%)
6,183,121 Series AS-1006-1, 7.49% V/R, 1/25/12 6,726,079
4,387,551 Series BA-1001-1, 6.92% V/R, 1/25/03 4,528,777
3,101,832 Series CS-1001-1, 7.19% V/R, 7/25/01 3,193,919
8,700,028 Series CS-1010-1, 7.42% V/R, 7/25/02 9,129,591
---------------
TOTAL FAMC (COST $22,853,243) 23,578,366
---------------
FHLMC (9.5%)
14,850,000 Gold Pool C00680, 6.00%, 11/1/28 14,678,335
19,364,074 Gold Pool C80461, 7.00%, 12/1/26 19,781,563
7,744,436 Gold Pool D70924, 6.50%, 5/1/26 7,809,799
---------------
TOTAL FHLMC (COST $41,139,551) 42,269,697
---------------
FNMA (6.6%)
4,920,846 Pool 73806, 7.30%, 12/1/11 5,316,040
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INTERMEDIATE GOVERNMENT INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MORTGAGE BACKED SECURITIES (continued)
FNMA (continued)
<TABLE>
<C> <S> <C>
14,572,872 Pool 412682, 6.00%, 3/1/28 $ 14,395,229
9,858,389 Pool 429182, 6.50%, 5/1/28 9,932,327
---------------
TOTAL FNMA (COST $28,839,257) 29,643,596
---------------
GNMA (3.3%)
14,264,430 Pool 445071, 7.50%, 1/15/27 (cost
$14,268,887) 14,750,276
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $107,100,937) 110,241,935
---------------
U.S. TREASURY OBLIGATIONS (47.8%)
U.S. TREASURY NOTE
9,000,000 8.00%, 5/15/01(d) 9,698,310
12,500,000 7.50%, 11/15/01 13,480,000
15,000,000 7.50%, 5/15/02 16,339,800
12,000,000 6.00%, 7/31/02 12,539,280
5,000,000 6.25%, 8/31/02 5,268,200
10,000,000 7.25%, 8/15/04(d) 11,251,800
23,000,000 7.88%, 11/15/04 26,689,890
7,500,000 7.50%, 2/15/05 8,592,375
12,000,000 10.75%, 8/15/05 16,051,200
26,000,000 6.88%, 5/15/06 29,347,240
21,000,000 7.00%, 7/15/06 23,890,020
17,000,000 6.50%, 10/15/06 18,839,400
7,000,000 6.63%, 5/15/07(d) 7,863,590
3,000,000 6.13%, 8/15/07(d) 3,270,990
10,000,000 5.63%, 5/15/08(d) 10,636,600
---------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $205,703,787) 213,758,695
---------------
SHORT TERM HOLDINGS (4.6%)
20,796,509 Norwest U.S. Government Fund (cost
$20,796,509) 20,796,509
---------------
TOTAL INVESTMENTS (100.0%) (COST $433,155,536) $ 447,046,729
---------------
---------------
- -----------------------------------------------------------------
INCOME FUND
- -----------------------------------------------------------------
ASSET BACKED SECURITIES (6.0%)
4,998,518 First Plus Home Loan Trust, Series
1996-2 A5, 7.47%, 2/20/11 $ 5,171,767
3,784,440 First USA Consumer Trust, Class A.
6.50%, 9/15/02 3,790,355
7,000,000 Green Tree Financial Corp., Series
1997-6 A7, 7.14%, 1/15/29 7,644,490
5,000,000 Premier Auto Trust, Series 1998-2 A3,
5.77%, 1/6/02 5,046,800
---------------
TOTAL ASSET BACKED SECURITIES (COST $20,774,565) 21,653,412
---------------
CORPORATE BONDS & NOTES (55.1%)
3,000,000 AEP Resources, Inc., 6.50% 12/1/03(b) 3,024,090
6,000,000 AMBAC, Inc., 9.38% 8/1/11 7,975,200
2,500,000 Alabama Power Co., 5.35% 11/15/03 2,501,000
</TABLE>
[LOGO]
See Notes to Schedules of Investments
54
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
CORPORATE BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
300,000 American Express Credit, 7.38% 2/1/99 $ 301,010
6,000,000 American Home Products Corp., 7.25%
3/1/23 6,767,700
3,100,000 Amoco Canada, 7.25%, 12/1/02 3,338,111
3,000,000 Associates Corp of North America, 6.25%,
11/1/08 3,093,660
4,000,000 Bank of Boston Corp., 6.63%, 12/1/05 4,180,520
3,000,000 Bayerische Landesbank, New York, 6.20%,
2/9/06 3,088,890
3,500,000 CIT Group, Inc., 5.91%, 11/23/05 3,525,725
100,000 Central Power & Light Corp., 6.63%,
7/1/05 105,682
100,000 Citigroup, Inc., 8.63%, 2/1/07 117,934
4,550,000 Clear Channel Communications, Inc.,
7.25%, 10/15/27 4,495,218
3,000,000 Colgate-Palmolive Co., 5.58%, 11/6/08 3,038,610
5,000,000 Connecticut Light & Power, 7.88%, 6/1/01 5,235,350
100,000 Countrywide Funding Corp., 6.05%, 3/1/01 100,009
2,000,000 Dean Witter Discover & Co., 6.75%,
1/1/16 2,123,460
4,800,000 Dillard Department Stores, Inc., 9.13%,
8/1/11 5,908,272
1,420,000 Eli Lilly & Co., 6.25%, 3/15/03 1,486,996
1,500,000 Flowers Industries, Inc., 7.15%, 4/15/28 1,582,035
3,000,000 Ford Motor Credit Co., 7.00%, 9/25/01 3,122,520
305,000 GTE North, Inc., 5.50%, 2/15/99 305,241
6,000,000 General Electric Capital Corp., 8.70%,
2/15/03 6,787,260
3,000,000 General Motors Acceptance Corp., 5.75%,
11/10/03 3,024,180
50,000 Great Atlantic & Pacific Tea, 7.70%,
1/15/04 51,263
3,000,000 Gruma SA de CV, 7.63%, 10/15/07 2,746,050
3,000,000 Hilton Hotels Corp., 7.50%, 12/15/17 2,868,570
700,000 Imperial Oil Ltd., 8.30%, 8/20/01 753,627
200,000 Kentucky Utility, 5.95%, 6/15/00 202,678
5,000,000 Key Bank N.A., 6.50%, 4/15/08 5,331,600
1,200,000 Lehman Brothers Holdings, 6.63%,
12/27/02 1,206,912
7,000,000 Lehman Brothers Holdings, 8.50%, 8/1/15 7,715,050
50,000 Louisiana Power & Light, 7.50%, 1/1/02 50,358
250,000 McDonald's Corp., 7.38%, 7/15/02 252,690
6,800,000 Merck & Co., Inc., 6.40%, 3/1/28(d) 7,330,128
4,000,000 Merrill Lynch & Co., Inc., 6.88%,
11/15/18 4,212,200
250,000 Midland Bank plc, 6.95%, 3/15/11 265,260
500,000 Morgan Guaranty Trust Co., 7.38%, 2/1/02 530,530
5,000,000 Motorola, Inc., 6.50%, 11/15/28 5,161,200
4,650,000 Nabisco, Inc., 7.05%, 7/15/07 4,760,856
2,000,000 Nabisco, Inc., 7.55%, 6/15/15 2,013,080
150,000 National Rural Utilities, 6.50%, 9/15/02 157,210
3,000,000 National Rural Utilities, 5.00%, 10/1/02 2,983,290
5,000,000 NationsBank Corp., 7.80%, 9/15/16 5,842,000
140,000 New York Telephone Co., 6.13%, 1/15/10 145,072
3,000,000 News America Holdings, 8.88%, 4/26/23 3,665,460
250,000 Northern Illinois Gas, 5.88%, 5/1/00 250,113
400,000 Ohio Bell Telephone Co., 5.75%, 5/1/00 402,936
5,000,000 Oracle Corp., 6.72%, 2/15/04 5,219,350
5,000,000 PNC Bank Corp., 6.50%, 5/1/08 5,258,200
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
CORPORATE BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
585,000 Pennsylvania Power & Light Co., 6.88%,
3/1/04 $ 629,413
100,000 Philip Morris, Inc., 6.00%, 7/15/01 101,244
2,000,000 Premark International, Inc., 6.88%,
11/15/08 2,038,100
3,000,000 Province of British Columbia, 5.38%,
10/29/08 2,994,150
3,000,000 Province of Ontario, 5.50%, 10/1/08 3,022,410
85,000 RJR Nabisco, Inc., 8.75%, 8/15/05 87,708
15,000 Republic of Italy, 6.00%, 9/27/03 15,453
7,000,000 Royal Caribbean Cruises, 7.25%, 8/15/06 7,143,430
200,000 Southwest Airlines, 7.88%, 9/1/07 228,566
100,000 Southwest Bell Telephone, 6.63%, 7/15/07 107,418
1,500,000 Sprint Capital Corp., 6.88%, 11/15/28 1,579,875
100,000 Time Warner Entertainment, 7.25%, 9/1/08 109,419
7,000,000 Tosco Corp., 7.8%, 1/1/27 7,948,570
1,500,000 Toyota Motor Credit Corp., 5.63%,
11/13/03 1,517,010
4,500,000 Tyco International Group, 5.88%,
11/1/04(b) 4,483,125
65,000 WMC Finance USA, 6.50%, 11/15/03 67,213
800,000 Wachovia Corp., 7.00%, 12/15/99 812,672
5,000,000 Wal-Mart Stores, Inc., 9.10%, 7/15/00 5,315,700
4,500,000 Walt Disney Co., 5.25%, 12/1/03 4,513,725
3,500,000 Wisconsin Power & Light, 5.70%, 10/15/08 3,560,480
3,800,000 Worldcom, Inc., 6.40%, 8/15/05(d) 3,952,456
3,000,000 Yorkshire Power Finance, 6.15%,
2/25/03(d) 3,027,810
---------------
TOTAL CORPORATE BONDS & NOTES (COST $192,555,122) 197,860,303
---------------
GOVERNMENT AGENCY BONDS & NOTES (4.7%)
FFCB (0.1%)
250,000 6.28%, 1/22/01 (cost $249,531) 257,017
---------------
FHLMC (0.1%)
205,000 7.13%, 7/21/99 207,688
100,000 7.05%, 6/8/05 102,594
---------------
TOTAL FHLMC (COST $303,738) 310,282
---------------
FNMA (2.4%)
250,000 7.08%, 5/6/02 252,145
8,000,000 6.00%, 5/15/08 8,424,160
---------------
TOTAL FNMA (COST $8,894,765) 8,676,305
---------------
SLMA (0.3%)
500,000 6.05%, 9/14/00 509,930
705,000 6.00%, 1/16/01 705,416
---------------
TOTAL SLMA (COST $1,199,609) 1,215,346
---------------
TVA (1.8%)
6,000,000 6.00%, 3/15/13 (cost $6,289,080) 6,275,400
---------------
TOTAL GOVERNMENT AGENCY BONDS & NOTES (COST $16,936,723)
16,734,350
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments
55
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INCOME FUND (continued)
- -----------------------------------------------------------------
MORTGAGE BACKED SECURITIES (6.9%)
FHLMC (4.5%)
8,068,364 Pool C80461, 7.00%, 1/19/05 $ 8,242,318
7,744,436 Pool D70924, 6.50%, 4/28/06 7,809,799
---------------
TOTAL FHLMC (COST $15,348,309) 16,052,117
---------------
FNMA (2.4%)
2,385 Pool 303414, 6.50%, 7/1/02 2,418
8,930,720 Pool 398325, 6.00%, 7/3/07 8,821,854
---------------
TOTAL FNMA (COST $8,640,060) 8,824,272
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $23,988,369) 24,876,389
---------------
MUNICIPAL NOTES (1.2%)
4,000,000 Denver, CO, City and County SD #1,
Educational Facilities RV, Taxable
Pension, School Facilities Lease,
AMBAC insured, 6.49%, 12/15/02 (cost
$4,000,000) 4,167,800
---------------
U.S. TREASURY OBLIGATIONS (25.2%)
U.S. TREASURY BONDS (8.3%)
6,500,000 10.75%, 5/15/03 8,046,415
5,000,000 9.88%, 11/15/15 7,627,500
3,000,000 8.88%, 2/15/19(d) 4,305,600
8,700,000 6.13%, 11/15/27(d) 9,826,389
---------------
TOTAL U.S. TREASURY BONDS (COST $28,194,484) 29,805,904
---------------
U.S. TREASURY NOTES (16.9%)
1,000,000 5.75%, 11/15/00 1,021,440
3,500,000 7.88% 8/15/01(d) 3,786,370
2,000,000 6.25%, 10/31/01 2,086,740
5,500,000 6.00%, 7/31/02 5,747,170
4,000,000 11.88%, 11/15/03 5,241,040
4,000,000 7.25%, 8/15/04 4,500,720
3,000,000 7.50%, 2/15/05 3,436,950
3,000,000 7.00%, 7/15/06(d) 3,412,860
5,000,000 6.50%, 10/15/06 5,541,000
10,000,000 6.63%, 5/15/07(d) 11,233,700
11,800,000 5.63%, 5/15/08(d) 12,551,188
2,000,000 4.75%, 11/15/08(d) 2,003,100
---------------
TOTAL U.S. TREASURY NOTES (COST $59,548,328) 60,562,278
---------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $87,742,812) 90,368,182
---------------
SHORT TERM HOLDINGS (0.9%)
3,302,040 Norwest Cash Investment Fund (cost
$3,302,040) 3,302,040
---------------
TOTAL INVESTMENTS (100.0%) (COST $349,299,631) $ 358,962,476
---------------
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TOTAL RETURN BOND FUND
- -----------------------------------------------------------------
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware)(f) $ 108,662,726
---------------
TOTAL INVESTMENTS (100.0%) (COST $107,766,210) $ 108,662,726
---------------
---------------
- -----------------------------------------------------------------
TAX-FREE INCOME FUND
- -----------------------------------------------------------------
MUNICIPAL BONDS (97.0%)
ARIZONA (1.0%)
3,000,000 Maricopa County, AZ Union SD #48, GO
Bonds, School Improvements, 9.00%,
7/1/05 $ 3,855,781
---------------
CALIFORNIA (2.9%)
1,910,000 Los Angeles, CA, Community Redevelopment
Agency Housing RV, Monterey Hills
Redevelopment Project, Series A,
8.20%, 12/1/13 2,209,774
7,000,000 Metropolitan Water District, Southern
California, Waterworks RV, Regional
RIBS; inverse floater, 7.41%, 8/10/18 8,776,250
---------------
10,986,024
---------------
COLORADO (8.6%)
4,635,000 Adams County, CO, SFM RV, Series A-2,
8.70%, 6/1/01 5,001,860
1,750,000 Arapahoe County, CO, Utilities RV, Water
& Wastewater Authority, 6.25%, 12/1/20 1,911,262
1,000,000 Colorado HFA, Series A, 7.40%, 5/1/11 1,061,140
1,440,000 Colorado HFA SFM RV, Series A-2, 7.15%,
11/1/14 1,640,405
2,275,000 Colorado HFA SFM RV, Series B2, 7.50%,
12/1/16 2,571,569
2,785,000 Colorado HFA SFM RV, Series C, 7.90%,
12/1/24 3,079,235
2,475,000 Colorado HFA SFM RV, Series D-1,
remarketed 7/15/94, 8.00%, 12/1/24 2,727,351
1,810,000 Colorado HFA SFM RV, Series D-II,
remarketed 11/15/94, 8.13%, 6/1/25 1,982,529
5,200,000 Denver, CO, Urban Renewal Authority, Tax
Increment RV, remarketed 6/15/94,
9.13%, 9/1/17 6,157,580
3,500,000 El Paso County, CO, SD #11, Colorado
Springs, GO Bonds, 7.10%, 12/1/17 4,503,870
495,000 Logan County, CO, SFM RV, Series A,
8.50%, 11/1/11 530,259
1,000,000 Northern Metropolitan District, CO, RV,
Adams County, 6.50%, 12/1/16 1,080,440
735,000 Vail, CO, SFM RV, Series 1992 A, 8.13%,
6/1/10 796,086
---------------
33,043,586
---------------
FLORIDA (2.7%)
2,020,000 Florida State Department of Children &
Families COP, South Florida State
Hospital Project, 4.75%, 7/1/12 2,044,179
</TABLE>
[LOGO]
See Notes to Schedules of Investments
56
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
FLORIDA (continued)
<TABLE>
<C> <S> <C>
1,000,000 Florida State Department of Children &
Families COP, South Florida State
Hospital Project, 5.00%, 7/1/18 $ 1,003,890
3,000,000 Lakeland, FL, Electric & Water RV, FGIC
insured, 6.00%, 10/1/14 3,441,030
2,825,000 Palm Beach County, FL, Health Facilities
Authority RV, John F. Kennedy Memorial
Hospital, Inc. Project, 9.50%, 8/1/13 3,895,675
---------------
10,384,774
---------------
GEORGIA (1.4%)
3,650,000 Georgia Municipal Electric Power
Authority RV, Series BB, MBIA insured,
5.25%, 1/1/25 3,823,010
1,500,000 Houston County, GA, Development
Authority MFHR, Emerald Coast Housing,
Series A, 7.00%, 8/1/28 1,513,590
---------------
5,336,600
---------------
HAWAII (2.0%)
7,250,000 Hawaii State Department of Budget &
Finance, Health Care RV, The Queens
Health Systems, Series A, 5.75%,
7/1/26 7,736,548
---------------
IDAHO (0.1%)
500,000 Pocatello, ID, IDA Allocation Tax
Increment Bonds, Series B, 7.25%,
12/1/08 524,455
---------------
ILLINOIS (8.5%)
1,770,000 Illinois Development Financial Authority
RV, Community Rehabilitation
Providers, Series A, 7.88%, 2/1/05 2,174,056
975,000 Illinois Development Financial Authority
RV, Community Rehabilitation
Providers, Series A, 7.88%, 7/1/20,
P/R 7/1/05 @ 102 1,098,328
4,940,000 Illinois Educational Facilities
Authority RV, Capital Appreciation,
ETM, 0.00% (5.95% to 6.22% effective
yield), 7/1/14 2,025,400
1,120,000 Illinois Health Facilities Authority,
Health Care RV, Edgewater Medical
Center, Series A, 9.25%, 7/1/04 1,425,850
4,150,000 Illinois State Sales Tax RV, Series P,
6.50%, 6/15/22 5,015,399
1,025,000 Lake County, IL, Community Unit SD #116,
Educational Facilities RV, Rund Lake,
7.60%, 2/1/13 1,308,781
7,350,000 Regional Transportation Authority, IL,
Sales Tax RV, Series D, FGIC insured,
7.75%, 6/1/19 10,093,608
8,000,000 Regional Transportation Authority, IL,
Transportation RV, FGIC insured,
6.00%, 6/1/23 9,266,320
---------------
32,407,742
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
INDIANA (0.8%)
2,900,000 Indiana Transportation Financial
Authority Highway RV, Series A, AMBAC
insured, 5.25%, 6/1/15 $ 3,066,286
---------------
KANSAS (2.3%)
3,175,000 Kansas State, DOT, Highway RV, Series A,
7.25%, 9/1/08 3,935,349
4,150,000 Sedgwick & Shawnee Counties, KS, SFM RV,
Mortgage Backed Securities, Series
A-2, Step Coupon, GNMA COLL, 6.7%,
6/1/29 4,731,747
---------------
8,667,096
---------------
KENTUCKY (2.3%)
8,800,000 Carrollton & Henderson, KY, Public
Energy Authority Gas RV, Series A,
4.50%, 1/1/00 8,898,824
---------------
LOUISIANA (0.7%)
5,000,000 Rapides Parish, LA, Housing & Mortgage
Finance Authority, Capital
Appreciation RV, Series C, 0.00%,
(7.45% effective yield), 7/10/14 1,762,100
2,900,000 St. Bernard Parish, LA, Housing Mortgage
Agency, SFM RV, Series 1992 C, 0.00%,
(7.65% effective yield), 7/10/14 917,908
---------------
2,680,008
---------------
MASSACHUSETTS (5.3%)
5,325,000 Massachusetts Bay Transportation
Authority, General Transportation
System RV, Series B, 6.20%, 3/1/16 6,216,511
5,000,000 Massachusetts Bay Transportation
Authority, General Transportation
System, Series B, 5.00%, 3/1/28 4,912,850
2,500,000 Massachusetts State College Building
Authority, Educational Facilities RV,
Series A, 7.5%, 5/1/14 3,248,325
2,500,000 Massachusetts State, HEHFA RV,
Massachusetts Institute of Technology,
Series I-1, 5.20%, 1/1/28 2,629,500
2,500,000 Massachusetts State Industrial Finance
Agency, University Commons Nursing
Home, Series A, FHA insured, 6.65%,
8/1/38 2,808,925
490,000 New Bedford, MA, IDA RV, Aerovox, Inc.
Project, Series 1982, 7.42%, 7/1/02 490,907
---------------
20,307,018
---------------
MICHIGAN (1.5%)
1,745,000 Michigan State Hospital Finance
Authority RV, Grace Hospitals, 7.13%,
5/1/09 2,013,974
2,760,000 Wayland, MI, Unified SD, GO Bonds, FGIC
insured, 8.00%, 5/1/10 3,639,861
---------------
5,653,835
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments
57
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
MISSISSIPPI (0.5%)
1,000,000 Mississippi Development Special
Obligation RV, Panola County Hospital
Project, 5.00%, 7/1/28 $ 964,790
2,000,000 Mississippi Home Corp., Residual Capital
Appreciation RV, Series 1992 II,
0.00%, (7.38% effective yield),
4/15/12 784,140
---------------
1,748,930
---------------
NEBRASKA (0.9%)
2,580,000 American Public Energy Agency, Nebraska
Gas Supply RV, Nebraska Public Gas
Agency Project, Series C, 4.00%,
9/1/07 2,535,908
1,000,000 Nebraska Investment Finance Authority,
Hospital RV, Great Plains Regional
Medical Center Project, 5.45%,
11/15/17 1,030,350
---------------
3,566,258
---------------
NEW HAMPSHIRE (0.3%)
1,095,000 New Hampshire HEHFA RV, New London
Hospital Association Project, 7.00%,
6/1/00 1,127,127
---------------
NEW MEXICO (4.4%)
5,295,000 Bernalillo County, NM, Gross Receipts
Tax RV, Series B, 5.70%, 4/1/27 5,944,167
985,000 Hobbs, NM, SFM RV, 8.75%, 7/1/11 1,095,842
1,000,000 New Mexico State Hospital Equipment
Council RV, Memorial Medical Center,
Inc. Project, 4.85%, 6/1/08 995,110
1,000,000 New Mexico State Hospital Equipment
Council RV, Memorial Medical Center,
Inc. Project, 5.50%, 6/1/28 983,660
6,585,000 Santa Fe County, NM, Correctional
Systems RV, FSA insured, 6.00%, 2/1/27 7,701,553
---------------
16,720,332
---------------
NEW YORK (11.7%)
10,000,000 Long Island Power Authority, New York
Electric System RV, 4.25%, 4/1/00 10,088,200
10,000,000 Metropolitan Transporation Authority,
NY, Commuter Facilities RV, Series A,
MBIA insured, 5.63%, 7/1/27 10,699,900
3,000,000 New York, NY, City Municipal Water
Finance Authority, Water & Sewer
Systems RV, Series B, 5.25%, 6/15/29 3,027,960
1,480,000 New York, NY, GO Bonds, Series B-1,
7.30%, 8/15/10, P/R 8/15/04 @ 101 1,746,622
1,340,000 New York, NY, GO Bonds, Series B-1,
7.38%, 8/15/13, P/R 8/15/04 @ 101 1,586,506
1,200,000 New York State Dorm Authority, Health
Care RV, Good Samaritan Hospital
Suffern, 5.50%, 7/1/10 1,294,428
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
NEW YORK (continued)
<TABLE>
<C> <S> <C>
15,000,000 Port Authority New York & New Jersey,
Consolidated Eighty-Fifth Series,
5.38%, 3/1/28 $ 16,260,000
---------------
44,703,616
---------------
OHIO (1.4%)
4,200,000 Greater Cleveland, OH, Regional
Transportation Authority, Capital
Improvement, Series R, 4.50%, 12/1/12 4,167,702
1,000,000 Pike County, OH, Hospital Facility, Pike
Health Services, Inc. Project, 6.35%,
7/1/07 1,068,990
---------------
5,236,692
---------------
OKLAHOMA (0.3%)
1,245,000 Tulsa, OK, IDA RV, University of Tulsa,
Series A, MBIA insured, 6.00%, 10/1/16 1,423,396
---------------
OREGON (2.2%)
10,000,000 Washington County, OR, GO Bonds, 0.00%,
6/1/03 8,260,100
---------------
PENNSYLVANIA (0.4%)
1,600,000 Allentown PA, Area Hospital Authority
RV, Sacred Heart Hospital, 5.00%,
7/1/12 1,597,584
---------------
SOUTH CAROLINA (6.1%)
10,625,000 Connector 2000 Association, Inc., South
Carolina Toll Road RV, Southern
Connector Project, Series A, 5.38%,
1/1/38 10,014,912
7,500,000 Piedmont, SC, Municipal Power Agency,
Electric RV, Series A, 6.55%, 1/1/16 7,512,900
5,725,000 Piedmont, SC, Municipal Power Agency,
Electric RV, Series A, 6.60%, 1/1/21 5,735,076
---------------
23,262,888
---------------
SOUTH DAKOTA (1.1%)
3,500,000 South Dakota State, HEHFA RV, Huron
Regional Medical Center, 7.30%, 4/1/16 4,257,820
---------------
TENNESSEE (2.0%)
25,000,000 Nashville & Davidson County, TN, Health
& Education Board RV, Sub-Volunteer
Healthcare, 0.00%, 6/1/21 7,704,250
---------------
TEXAS (14.8%)
450,000 Baytown, TX, Housing Finance Corp., SFM
RV, Series 1992 A, 8.50%, 9/1/11 505,872
2,065,000 Beaumont, TX, Housing Finance Corp. RV,
9.20%, 9/1/01 2,299,935
19,500,000 Brazos River Authority RV, Houston
Industries, Inc. Project, Series D,
4.90%, 10/1/15 19,801,275
1,650,000 Corpus Christi, TX, HFA, Housing RV,
Series A, MBIA insured, 7.70%, 7/1/11 1,811,733
</TABLE>
[LOGO]
See Notes to Schedules of Investments
58
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
TEXAS (continued)
<TABLE>
<C> <S> <C>
2,395,000 De Soto, TX, Housing Finance Corp., MFHR
RV, Windsor Foundation Project, Series
A, 7.00%, 2/1/25 $ 2,794,654
225,000 El Paso, TX, Housing Finance Corp., SFM
RV, Series A, 8.75%, 4/1/01 249,190
305,000 Galveston County, TX, Property Finance
Authority, Inc., SFM RV, Series A,
8.50%, 9/1/11 329,446
2,390,000 Grand Prairie TX, GO Bonds, Series C,
5.50%, 2/15/00 2,421,142
1,300,000 Grape Creek-Pulliam, TX, Independent SD
Public Facilities Corp., GO Bonds,
7.25%, 5/15/21 1,481,142
1,115,000 Harlandale, TX, ISD Public Facilities
Corp., Lease RV, 5.50%, 10/15/12 1,181,855
2,245,000 Hereford TX, Independent SD RV, 5.25%,
8/15/18 2,240,712
6,250,000 Houston TX, Housing Finance Corp. SFM
RV, Series A-1, 8.00%, 6/1/14 6,778,625
2,250,000 Houston TX, Housing Finance Corp. SFM
RV, Series B-1, 8.00%, 6/1/14 2,440,305
1,305,000 Port Arthur, TX, Housing Finance Corp.,
SFM RV, 8.70%, 3/1/12 1,435,487
3,750,000 San Antonio, TX, Electric & Gas RV,
Series A, 4.50%, 2/1/21 3,507,375
4,180,000 San Antonio, TX, HEHFA RV, 7.13%,
11/1/15 4,645,986
2,200,000 Texas State Department of Housing &
Community Affairs, SFM RV, Series A,
8.10%, 9/1/15 2,513,984
---------------
56,438,718
---------------
UTAH (0.2%)
750,000 Salt Lake County, UT, EFA RV,
Westminister College Project, 5.75%,
10/1/27 780,510
---------------
VIRGINIA (0.9%)
3,000,000 Fairfax Co, VA, Redevelopment & Housing
Authority, MFHR Bonds, Burke Shire
Commons, 7.60%, 10/1/36 3,298,320
---------------
WASHINGTON (7.4%)
2,055,000 Grant County, WA, Public Hospital
District, GO Bonds, 5.50%, 12/1/13 2,162,579
3,000,000 Grant County, WA, Public Hospital
District, GO Bonds, 5.15%, 12/1/23 2,960,550
1,748,000 Kitsap County, WA, Housing Authority RV,
Low Income Housing, GNMA COLL, 7.10%,
8/20/16 2,081,816
4,000,000 Washington Public Power Supply System,
Power RV, Nuclear Project #1, Series
A, 6.00%, 7/1/06 4,491,360
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
WASHINGTON (continued)
<TABLE>
<C> <S> <C>
2,750,000 Washington Public Power Supply System,
Power RV, Nuclear Project #2, Series
A, 6.00%, 7/1/07 $ 3,056,487
4,500,000 Washington State Public Power Supply
System, Power RV, Nuclear Project #3,
Series A, 5.13%, 7/1/18 4,477,770
1,620,000 Washington State Housing Finance
Commisssion, Nonprofit Housing RV, VA
Mason Research Center Project, Series
A, U.S. Bank of Washington, LOC,
5.65%, 1/1/19 1,696,756
3,500,000 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 3,680,530
3,000,000 Yakima County, WA, SD #007, GO Bonds,
MBIA insured, 6.75%, 12/1/06 3,529,890
---------------
28,137,738
---------------
WEST VIRGINIA (2.3%)
8,600,000 West Virginia State, GO Bonds, Series A,
5.20%, 11/1/26 8,926,284
---------------
TOTAL MUNICIPAL BONDS (COST $350,128,438) 370,739,140
---------------
SHORT-TERM HOLDINGS (3.0%)
6,982,576 Municipal Money Market Fund 6,982,576
750,000 Pitkin County, CO MFHR, Centennial,
Series A, Credit Lyonnais, LOC,
Republic National Bank, LOC, 3.35%
V/R, 12/1/24(c) 750,000
3,727,940 US Bank, Series BI, 4.30%, 8/11/99 3,727,940
---------------
TOTAL SHORT-TERM HOLDINGS (COST $11,460,516) 11,460,516
---------------
TOTAL INVESTMENTS (100.0%) (COST $361,588,954) $ 382,199,656
---------------
---------------
- -----------------------------------------------------------------
COLORADO TAX-FREE FUND
- -----------------------------------------------------------------
MUNICIPAL BONDS (91.0%)
AIRPORT REVENUE (2.8%)
1,000,000 Denver, CO, City & County, Airport RV,
Series A, MBIA insured, 5.60%,
11/15/20 $ 1,058,040
1,500,000 Denver, CO, City & County, Airport RV,
Series A, MBIA insured, 5.50%,
11/15/25 1,583,610
---------------
2,641,650
---------------
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (13.9%)
2,645,000 Adams County, CO, COP, SD #12, Five Star
Schools, MBIA insured, 4.80%, 12/15/12 2,660,235
1,000,000 Auraria, CO, COP, Higher Education
Center, Administrative Office
Facilities Project, AMBAC insured,
5.13%, 5/1/28 1,003,660
</TABLE>
[LOGO]
See Notes to Schedules of Investments
59
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (continued)
<TABLE>
<C> <S> <C>
570,000 Englewood, CO, COP, Civic Center
Project, MBIA insured, 4.30%, 6/1/07 $ 574,001
430,000 Englewood CO, COP, Civic Center Project,
MBIA insured, 4.40%, 6/1/08 433,225
490,000 Englewood, CO, COP, Civic Center
Project, MBIA insured, 4.50%, 6/1/09 493,734
1,250,000 Englewood, CO, COP, Civic Center
Project, MBIA insured, 5.10%, 6/1/23 1,254,075
100,000 Garfield County, CO, COP, Roaring Fork
SD, Lease Purchase Declaration Trust,
5.50%, 6/15/18 101,968
1,000,000 Lakewood, CO, COP, MBIA insured, 4.50%,
12/1/10 998,620
1,250,000 Lakewood, CO, COP, MBIA insured, 5.00%,
12/1/20 1,245,863
1,210,000 Montrose County, CO, COP, Series A,
6.40%, 12/1/12 1,354,656
335,000 Pueblo, CO, COP, Public Parking-Lease
Purchase & Sublease, 6.90%, 7/1/15 373,692
1,525,000 Teller County, CO, COP, 5.75%, 12/1/18 1,623,591
1,000,000 Westminster, CO, COP, MBIA insured,
5.00%, 12/1/25 996,330
---------------
13,113,650
---------------
ESCROWED IN TREASURIES (2.7%)
9,000,000 Dawson Ridge Metropolitan District No.1,
CO, GO Bonds, Series A, 0.00% (5.63%
effective yield), 10/1/22 2,550,870
---------------
GENERAL OBLIGATION (20.7%)
500,000 Centennial 25 Metropolitan District, CO,
GO Bonds, Arapahoe County, 6.38%,
12/1/16 554,670
500,000 Denver, CO, City & County SD #1, GO
Bonds, Series A, 6.50%, 6/1/10 597,740
390,000 Denver West Metropolitan District, CO,
GO Bonds, Series A, 5.60%, 12/1/12 417,148
115,000 El Paso County, CO, SD #11, Colorado
Springs, GO Bonds, 6.50%, 12/1/10 138,589
2,500,000 El Paso County, CO, SD #11, Colorado
Springs, GO Bonds, 7.10%, 12/1/17 3,217,050
350,000 Highlands Ranch, CO, Metropolitan
District No.4, GO Bonds, 6.10%,
12/1/07 375,932
800,000 Highlands Ranch, CO, Metropolitan
District No.4, GO Bonds, 6.30%,
12/1/07 867,712
1,000,000 Highlands Ranch, CO, Metropolitan
District No.4, GO Bonds, 6.50%,
6/15/11 1,194,850
1,100,000 Highlands Ranch, CO, Metropolitan
District No.4, GO Bonds, 6.50%,
6/15/12 1,319,384
2,000,000 Jefferson County, CO, SD #R-001, GO
Bonds, 6.50%, 12/15/11 2,410,060
2,500,000 Metex Metropolitan District, CO, GO
Bonds, Series A, 5.80%, 12/1/16 2,737,450
1,000,000 Northern Metropolitan District, Adams
County, CO, GO Bonds, 6.50%, 12/1/16 1,080,440
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
GENERAL OBLIGATION (continued)
<TABLE>
<C> <S> <C>
2,500,000 Puerto Rico Commonwealth, GO Bonds,
6.50%, 7/1/15 $ 2,999,725
250,000 South Denver, CO, GO Bonds, Metropolitan
District, 4.65%, 12/1/09 251,150
290,000 South Denver, CO, GO Bonds, Metropolitan
District, 4.75%, 12/1/10 291,583
1,000,000 Weld County, CO, Reorganization SD
#RE-004, GO Bonds, MBIA insured,
5.45%, 12/1/16 1,045,810
---------------
19,499,293
---------------
HEALTH CARE REVENUE (10.4%)
1,000,000 Boulder County, CO, Hospital RV,
Longmont United Hospital Project,
5.60%, 12/1/27 1,013,110
1,000,000 Colorado Health Facilities Authority RV,
Catholic Health Initiatives, Series A,
5.00%, 12/1/18 993,130
705,000 Colorado Health Facilities Authority RV,
National Jewish Medical & Research
Center, Series B, 5.25%, 1/1/18 696,596
1,000,000 Colorado Health Facilities Authority RV,
National Jewish Medical & Research
Center, 5.38%, 1/1/28 990,510
1,200,000 Colorado Health Facilities Authority RV,
Parkview Medical Center, Inc. Project,
5.30%, 9/1/25 1,173,048
1,250,000 Colorado Health Facilities Authority RV,
Sisters of Charity, Series A, AMBAC
insured, 6.25%, 5/15/11 1,464,038
250,000 Colorado Health Facilities Authority RV,
Sisters of Charity Leavenworth, MBIA
insured, 5.00%, 12/1/25 249,083
1,500,000 Colorado Health Facilities Authority RV,
Steamboat Springs Health, 5.75%,
9/15/22 1,533,750
200,000 Colorado Health Facilities Authority RV,
Weld County General Hospital Project,
9.38%, 7/1/09 253,358
1,000,000 Denver, CO, Health and Hospital RV,
Series A, 5.38%, 12/1/18 1,004,530
390,000 Larimer County, CO, RV, Lutheran Health
System, Series A-3, MBIA insured,
4.20%, 1/1/07 389,274
---------------
9,760,427
---------------
INDUSTRIAL DEVELOPMENT REVENUE (2.3%)
2,000,000 Fort Collins, CO, PCR Bonds, Anheuser
Busch Project, 6.00%, 9/1/31 2,185,860
---------------
MULTI-FAMILY HOUSING REVENUE (3.1%)
300,000 Aurora, CO, Housing Authority Finance
Corp. RV, Mountainview Place, FHA
insured 7.13%, 9/1/22 322,695
</TABLE>
[LOGO]
See Notes to Schedules of Investments
60
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
MULTI-FAMILY HOUSING REVENUE (continued)
<TABLE>
<C> <S> <C>
1,000,000 Denver, CO, City & County, MFHR Bonds,
FHA Insured Mortgage Loan, Garden
Court, 5.30%, 7/1/28 $ 1,014,660
1,500,000 San Miguel County, CO, HFA, MFHR Bonds,
Telluride Village Apartments Project,
6.40%, 7/1/23 1,599,540
---------------
2,936,895
---------------
OTHER REVENUE (5.8%)
3,000,000 Denver, CO, City & County RV, Helen G.
Bonfils Foundation Project, Series B,
5.13%, 12/1/17 3,017,190
600,000 Summit County, CO, Sports Facilities RV,
Keystone Resorts Management Project,
guaranteed by Ralston Purina Corp.,
7.39%, 9/1/10 723,342
1,715,000 Ironwood Trust II Series, 4.90%, 1/1/04 1,745,870
---------------
5,486,402
---------------
SALES TAX REVENUE (2.1%)
1,490,000 Arapahoe County, CO, Capital
Improvements & Transportation Highway
RV, E-470, MBIA insured, remarketed
8/31/95, 6.15%, 8/31/26 1,682,970
140,000 Blackhawk, CO, Device Tax RV, 5.60%,
12/1/04 147,638
145,000 Blackhawk, CO, Device Tax RV, 5.70%,
12/1/05 154,395
---------------
1,985,003
---------------
SINGLE FAMILY HOUSING REVENUE (18.9%)
1,215,000 Adams County, CO, SFM RV, Series A-2,
8.70%, 6/1/12 1,311,167
350,000 Colorado HFA RV, Single Family Project,
Series B-2, 7.50%, 12/1/16 395,626
3,390,000 Colorado HFA RV, Single Family Project,
Series B-2, 7.45%. 11/1/27 3,917,315
1,750,000 Colorado HFA RV, Single Family Project,
Series B-3, 6.55%, 5/1/25 1,970,273
1,340,000 Colorado, HFA RV, Single Family Project,
Series C-2, 7.45%, 6/1/17 1,526,166
1,120,000 Colorado HFA RV, Single Family Project,
Series D-1, 8.00%, 12/1/24 1,234,195
1,730,000 Colorado HFA RV, Single Family Project,
Series D-3, 6.13%, 11/1/23 1,887,707
1,525,000 Colorado HFA RV, Single Family Project,
Series D-II, 7.10%, 6/1/25 1,732,049
1,910,000 Colorado HFA RV, Single Family Project,
Seris D-II, 8.13%, 6/1/25 2,092,061
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
SINGLE FAMILY HOUSING REVENUE (continued)
<TABLE>
<C> <S> <C>
3,990,000 Larimer County, CO, SFM RV, Capital
Accumulator A, Remarketed 2/15/94,
ETM, 0.00% (5.50% effective yield),
8/1/15 $ 1,774,592
---------------
17,841,151
---------------
SPECIAL ASSESSMENT (1.6%)
1,470,000 Blackhawk, CO, Business Improvement
Special Assessment, District #97-1,
6.00%, 12/1/09 1,483,642
---------------
TOLL ROAD REVENUE (2.8%)
10,000,000 E-470 Public Highway Authority RV,
Capital Appreciation, Series B, MBIA
insured, 0.00% (5.52% effective
yield), 9/1/25 2,573,100
---------------
WATER & SEWER REVENUE (3.9%)
1,250,000 Arapahoe County, CO, Water & Wastewater
Authority RV, 6.25%, 12/1/20 1,365,187
1,500,000 Colorado Springs, CO, Utilities, RV,
Systems Improvement, Series A, 5.39%,
11/15/26 1,554,975
725,000 Johnstown, CO, Water Activity RV, 5.50%,
12/1/18 740,914
---------------
3,661,076
---------------
TOTAL MUNICIPAL BONDS (COST $81,073,916) 85,719,019
---------------
SHORT-TERM HOLDINGS (9.0%)
1,715,000 Ironwood Trust II Series, 3.69% V/R,
1/3/00(c) 1,715,000
2,287,518 Municipal Money Market Fund 2,287,518
2,430,000 Parkview Metropolitan District, Arapahoe
County, CO, GO Bonds, LOC, 3.25% V/R,
12/1/12(c) 2,430,000
2,000,000 Pitkin County, CO, MFHR Bonds,
Centennial, Series A, Credit Lyonnais,
LOC, 3.35% V/R, 12/1/24(c) 2,000,000
---------------
TOTAL SHORT-TERM HOLDINGS (COST $8,432,518) 8,432,518
---------------
TOTAL INVESTMENTS (100.0%) (COST $89,506,434) $ 94,151,537
---------------
---------------
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND
- -----------------------------------------------------------------
MUNICIPAL BONDS (93.7%)
AIRPORT REVENUE (1.3%)
1,000,000 Minneapolis & St. Paul, MN, Metropolitan
Airports RV, Community Airport, Series
A, AMBAC insured, 5.00%, 1/1/22 $ 1,002,240
---------------
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (2.5%)
1,290,000 Lino Lakes, MN, EDA, Lease Revenue,
Series A, 5.35%, 2/1/19 1,303,210
</TABLE>
[LOGO]
See Notes to Schedules of Investments
61
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (continued)
<TABLE>
<C> <S> <C>
205,000 Savage, MN, EDA RV, Lease Revenue,
5.40%, 2/1/14 $ 210,793
220,000 Savage, MN, EDA RV, Lease Revenue,
5.45%, 2/1/15 226,442
210,000 Savage, MN, EDA RV, Lease Revenue,
5.50%, 2/1/16 216,455
---------------
1,956,900
---------------
EDUCATION FACILITIES REVENUE (16.5%)
1,470,000 Hopkins, MN, Educational Facilities RV,
Blake School Project, 5.50%, 9/1/24 1,516,731
1,055,000 Minnesota State HEFA RV, Augsburg
College, Series 3-G, Connie Lee
insured, 6.50%, 1/1/11 1,104,258
1,345,000 Minnesota State HEFA RV, College at St.
Benedict, Series 4-T, 5.35%, 3/1/20 1,353,447
2,250,000 Minnesota State HEFA RV, St. Johns
University, Series 4-L, 5.40%, 10/1/22 2,322,405
500,000 Minnesota State HEFA RV, University of
St. Thomas, series 4-M, 5.35%, 4/1/17 514,350
135,000 Minnesota State HEFA RV, Unrefunded
Balance, Series 3-W, 6.00%, 3/1/07 144,989
5,500,000 University of Minnesota, Educational
Facilities RV, Series A, 5.50%, 7/1/21 6,023,050
---------------
12,979,230
---------------
ESCROWED IN TREASURIES (11.9%)
200,000 Bemidji, MN, Hospital Facilities
Authortiy RV, First Mortgage-North
Country Health Services Project,
Series A, 7.00%, 9/1/11, P/R 9/1/01 @
102 220,568
210,000 Bloomington, MN, Tax Increment GO Bonds,
9.75%, 2/1/07, P/R 2/1/05 @ 100 275,148
2,530,000 Burnsville, MN, Hospital Systems RV,
Fairview Community Hospitals, 0.00%
(5.87% effective yield), 5/1/12 1,215,665
500,000 Chaska, MN, Independent SD # 112, GO
Bonds, SCEP, Series B, 6.00%, 2/1/13,
C/O 2/1/06 @ 100 558,760
800,000 Edina, MN, Independent SD # 273, GO
Bonds, 5.50%, 2/1/04, P/R 2/1/02 @ 100 842,112
800,000 Mankato, MN, Hospital Facility RV, First
Mortgage-Immanuel St. Joseph's
Project, Series A, 6.30%, 8/1/22, P/R
8/1/02 @ 102 883,672
1,000,000 Minnesota PFA Water PCR Bonds, Series A,
6.50%, 3/1/14, P/R 3/1/02 @ 102 1,102,490
365,000 Minnesota State HEFA RV, Series 3-W,
6.00%, 3/1/07, P/R 3/1/04 @ 100 399,160
750,000 Moorhead, MN, EDA, MFHR Bonds, Eventide
Project, Series A, 8.00%, 9/1/11 P/R
9/1/00 @ 102 819,705
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
125,000 Northern Minnesota Municipal Power
Agency, Electric System RV, Series A,
AMBAC insured 6.00%, 1/1/19, P/R
1/1/99 @ 100 $ 125,308
240,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
A, 6.00%, 1/1/13, P/R 1/1/99 @ 100 1,904,309
1,000,000 Stillwater, MN, Independent SD # 834, GO
Bonds, FGIC insured, 6.75%, 2/1/10,
P/R 2/1/99 @ 100 1,006,030
---------------
9,352,927
---------------
GENERAL OBLIGATION--(6.0%)
100,000 Bloomington, MN, Tax Increment GO Bonds,
9.70%, 2/1/04 126,425
1,500,000 Hennepin County, MN, RV, Solid Waste
5.75%, 10/1/10 1,618,170
2,650,000 Minneapolis, MN, GO Bonds, Sports Arena
Project, 5.20%, 10/1/24 2,701,834
245,000 Waconia, MN, GO Bonds, 6.00%, 6/1/07 261,731
---------------
4,708,160
---------------
GENERAL OBLIGATION--SCHOOL DISTRICTS (5.2%)
1,650,000 Minnetonka, MN, Independent SD # 276, GO
Bonds, SCEP, Series B, 5.75%, 2/1/22 1,765,681
2,200,000 Wayzata, MN, Independent SD # 284, GO
Bonds, Series A, 5.35%, 2/1/15 2,298,824
---------------
4,064,505
---------------
GENERAL OBLIGATION--STATES, TERRITORIES (3.5%)
1,500,000 Minnesota State, GO Bonds, 5.25%, 8/1/15 1,549,695
1,010,000 Puerto Rico Commonwealth, GO Bonds,
6.50%, 7/1/15 1,211,889
---------------
2,761,584
---------------
HEALTH CARE REVENUE (24.3%)
1,435,000 Bemidji, MN, Hospital Facilities,
Healthcare First Mortgage RV, North
Country Health Services Project,
5.63%, 9/1/21 1,484,952
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 1,084,070
500,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.40%, 5/1/18 546,120
500,000 Glencoe, MN, Health Care RV, 6.40%,
12/1/15 518,590
690,000 Glencoe, MN, Hospital RV, 6.63%, 4/1/11 730,765
1,350,000 Hastings, MN, Health Care Facilities RV,
Regina Medical Center, ACA insured,
5.30%, 9/15/28 1,350,392
</TABLE>
[LOGO]
See Notes to Schedules of Investments
62
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<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>
1,000,000 Hibbing, MN, Health Care Facilities RV,
Duluth Clinic Ltd., FSA insured,
5.50%, 11/1/16 $ 1,051,060
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 1,065,930
500,000 Minneapolis & St. Paul, MN, Housing &
Redevelopment Authority Health Care
System, Group Health Plan, Inc.
Project, 6.75%, 12/1/13 542,730
600,000 Minneapolis & St. Paul, MN, Housing &
Redevelopment Authority Health Care
System, HealthOne Obligated Group
Project, Series A, MBIA insured,
7.40%, 8/15/11 647,094
2,500,000 Minnesota Agriculture & Economic
Development Board, Health Care RV,
Fairview Hospital, Series A, MBIA
insured, 5.50%, 11/15/17 2,651,000
3,800,000 Minnesota Agriculture & Economic
Development Board, Health Care RV,
Fairview Hospital, Series A, MBIA
insured, 5.75%, 11/15/26 4,089,636
825,000 Monticello-Big Lake, MN, Community
Hospital District Gross Revenue,
Health Care RV, Series A, 5.45%,
12/1/12 841,079
115,000 Red Wing, MN, Health Care Facilities RV,
River Region Obligated Group, Series
1993 B, 6.35%, 9/1/07 123,989
1,000,000 Rochester, MN, Health Care Facilities
RV, Mayo Medical Center, Series F,
6.25%, 11/15/21 1,087,730
1,260,000 Roseau, MN, Area Hospital District Gross
Revenue, Health Care Facilities,
5.75%, 10/1/23 1,263,641
---------------
19,078,778
---------------
INDUSTRIAL DEVELOPMENT REVENUE (0.7%)
500,000 St. Paul, MN, Housing & Redevelopment
Authority, District Cooling RV, Series
J, Credit Local de France, LOC, 5.35%,
3/1/18 507,250
---------------
MULTI-FAMILY HOUSING REVENUE (2.7%)
585,000 Minnesota State, HFA, Housing
Development RV, 6.25%, 2/1/20 592,418
550,000 Minnesota State, HFA, Housing
Development RV, Series A, 6.85%,
2/1/07 588,269
490,000 Minnesota State, HFA, Rental Housing RV,
Series B, 6.25%, 8/1/22 495,953
430,000 Minnesota State, HFA, Rental Housing RV,
Series D, MBIA insured, 5.90%, 8/1/15 455,955
---------------
2,132,595
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
NURSING HOME REVENUE (4.5%)
250,000 Duluth, MN, EDA, Health Care Facilities
RV, BSM Properties Inc. Project,
Series A, 5.63%, 12/1/18 $ 251,005
750,000 Duluth,MN, EDA, Health Care Facilities
RV, BSM Properties, Inc. Project,
Series A, 5.88%, 12/1/28 757,995
500,000 Minneapolis, MN, Health Care Facilities
RV, Ebenezer Society Project, Series
A, 7.20%, 7/1/23 527,765
1,000,000 Minneapolis, MN, RV, Walker Methodist
Senior Services, Series A, 5.88%,
11/15/18 988,970
500,000 Minnesota Agriculture & Economic
Development Board RV, The Evangelical
Lutheran Project, AMBAC insured,
5.15%, 12/1/22 501,460
500,000 Waconia, MN, Housing & Redevelopment
Authority RV, The Evangelical Lutheran
Project, Series A, 5.85%, 6/1/06 537,350
---------------
3,564,545
---------------
POWER REVENUE (5.4%)
500,000 North Branch, MN, Electric System RV,
5.40%, 5/1/18 505,055
1,000,000 Northern Minnesota Municipal Power
Agency, Electric System RV, FSA
Insured, 5.25%, 1/1/17 1,033,510
1,135,000 Northern Municipal Power Agency,
Minnesota Electric System RV, Series
B, AMBAC insured, 5.50%, 1/1/18 1,184,055
1,000,000 Puerto Rico Electric Power Authority, RV
Series X, 5.50%, 7/1/25 1,033,100
6,690,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
A, MBIA insured 0.00% (5.20% effective
yield), 1/1/24 240,504
200,000 Western Minnesota Municipal Power
Agency, Power Supply RV, Series A,
5.50%, 1/1/15 200,120
---------------
4,196,344
---------------
SINGLE FAMILY HOUSING REVENUE (6.2%)
550,000 Minnesota State, HFA, SFM RV, Series A,
5.95%, 1/1/17 588,010
670,000 Minnesota State, HFA, SFM RV, Series Q,
6.25%, 7/1/14 703,366
940,000 Minnesota State, HFA, SFM RV, remarketed
8/12/92, 6.25%, 1/1/15 991,813
1,500,000 Minnesota State, HFA RV, Rental Housing,
Series A 5.38%, 8/1/28 1,539,810
655,000 St. Paul, MN, Housing & Redevelopment
Authority SFM RV, FNMA Mortgage Backed
Securities Program, FNMA insured,
6.25%, 9/1/14 704,394
</TABLE>
[LOGO]
See Notes to Schedules of Investments
63
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<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>
315,000 Vadnais Heights, MN, SFM RV, 6.00%,
11/1/09 $ 337,135
---------------
4,864,528
---------------
SPORTS FACILITY REVENUE (3.0%)
250,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.40%, 2/1/03 258,630
460,000 Eagan, MN, Ice Arena, Gross RV, Series
B, 5.50%, 4/1/19 466,219
920,000 Minnesota State Iron Range Resources &
Rehabilitation Gross RV, Giants Ridge
Recreational Area, 7.25%, 10/1/11 968,245
115,000 St. Cloud, MN, COP, 5.40%, 12/1/08 118,305
120,000 St. Cloud, MN, COP, 5.50%, 12/1/09 123,652
400,000 St. Cloud, MN, COP, 5.90%, 12/1/17 408,172
---------------
2,343,223
---------------
TOTAL MUNICIPAL BONDS (COST $69,661,366) 73,512,809
---------------
SHORT-TERM HOLDINGS (6.3%)
1,764,664 Federated Tax-Free Obligation Fund 1,764,664
100,000 Cohasset, MN, RV, Minnesota Power &
Light Co. Project, Series C, ABN AMRO
Bank NV, LOC, 3.25% V/R, 6/1/13(c) 100,000
1,100,000 Cottage Grove, MN, Environmental Control
RV, Minnesota, Mining & Manufacturing,
LOC, 4.17% V/R, 8/1/12(c) 1,100,000
2,000,000 Robbinsdale, MN, IDA RV, Unicare Homes
Inc. Project, 3.35% V/R, 10/1/14(c) 2,000,000
---------------
TOTAL SHORT-TERM HOLDINGS (COST $4,964,664) 4,964,664
---------------
TOTAL INVESTMENTS (100.0%) (COST $74,626,030) $ 78,477,473
---------------
---------------
- -----------------------------------------------------------------
GROWTH BALANCED FUND
- -----------------------------------------------------------------
N/A Managed Fixed Income Portfolio of Core
Trust (Delaware)(f) $ 131,143,530
N/A Positive Return Bond Portfolio of Core
Trust (Delaware)(f) 87,899,848
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware)(f) 43,866,917
N/A Index Portfolio of Core Trust
(Delaware)(f) 118,330,560
N/A Income Equity Portfolio of Core Trust
(Delaware)(f) 119,029,528
N/A Disciplined Growth Portfolio of Core
Trust (Delaware)(f) 23,673,417
N/A Large Company Growth Portfolio of Core
Trust (Delaware)(f) 93,639,569
N/A Small Cap Index Portfolio of Core Trust
(Delaware)(f) 9,615,290
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(f) 7,703,565
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
GROWTH BALANCED FUND (continued)
- -----------------------------------------------------------------
N/A Small Cap Value Portfolio of Core Trust
(Delaware)(f) $ 7,719,560
N/A Small Company Value Portfolio of Core
Trust (Delaware)(f) 11,578,197
N/A Small Company Growth Portfolio of Core
Trust (Delaware)(f) 11,442,214
N/A International Portfolio of Core Trust
(Delaware)(f) 70,858,059
N/A Schroder EM Core Portfolio of Schroder
Capital Funds(f) 862,112
---------------
TOTAL INVESTMENTS IN CORE 737,362,366
---------------
U.S. TREASURY OBLIGATIONS
6,515,000 U.S. Treasury Bill, 3.80%, 9/16/99 6,297,268
---------------
TOTAL INVESTMENTS (100.0%) (COST $544,701,195) $ 743,659,634
---------------
---------------
FINANCIAL FUTURES CONTRACTS(e)
</TABLE>
<TABLE>
<CAPTION>
POSITION CONTRACTS INDEX UNREALIZED GAIN
- ------------- --------- ----------------------------- ---------------
<S> <C> <C> <C>
Long 387 S&P 500 Index Futures,
Expiring December 18, 1998
(notional value
$112,471,875) $ 14,255,150
Short 795 U.S. Treasury Futures,
Expiring December 21, 1998
(notional value
$94,629,843) 2,472,281
---------------
$ 16,727,431
---------------
---------------
</TABLE>
- ---------------------------------------------------------
INCOME EQUITY FUND
- ---------------------------------------------------------
N/A Income $ 1,504,268,776
Equity
Portfolio
of Core
Trust
(Delaware)(f)
---------------
TOTAL INVESTMENTS $ 1,504,268,776
(100.0%) (COST
$1,142,125,598)
---------------
---------------
- ---------------------------------------------------------
VALUGROWTH STOCK FUND
- ---------------------------------------------------------
COMMON STOCKS (100.0%)
AMUSEMENT & RECREATION SERVICES (1.8%)
398,300 Patriot $ 2,937,463
American
Hospitality,
Inc.
159,819 Walt 5,144,174
Disney
Co.
---------------
8,081,637
---------------
BUSINESS SERVICES (14.5%)
254,000 Cerner 6,667,500
Corp.(a)(d)
139,600 Ecolab, 4,318,875
Inc.
487,800 Electronics 13,079,137
for
Imaging,
Inc.(a)
320,000 Gartner 6,920,000
Group,
Inc.(a)
194,600 HNC 6,421,800
Software,
Inc.(a)(d)
112,000 Legato 5,355,000
Systems,
Inc.(a)(d)
51,860 Microsoft 6,326,920
Corp.(a)
163,500 National 6,110,813
Data
Corp.(d)
200,000 Parametric 3,400,000
Technology
Co.(a)
[LOGO]
See Notes to Schedules of Investments
64
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
VALUGROWTH STOCK FUND (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
BUSINESS SERVICES (continued)
<TABLE>
<C> <S> <C>
95,000 Sun Microsystems, Inc.(a) $ 7,035,938
---------------
65,635,983
---------------
CHEMICALS & ALLIED PRODUCTS (11.5%)
132,000 American Home Products Corp. 7,029,000
100,180 E.I. Du Pont de Nemours & Co. 5,885,575
82,000 Johnson & Johnson 6,662,500
55,000 Merck & Co., Inc. 8,518,125
162,300 Monsanto Co.(d) 7,354,219
100,200 Procter & Gamble Co. 8,780,025
140,000 Watson Pharmaceuticals, Inc.(a) 7,542,500
---------------
51,771,944
---------------
DEPOSITORY INSTITUTIONS (9.4%)
179,135 BankAmerica Corp. 11,677,363
54,500 Chase Manhattan Corp. 3,457,343
156,580 First Union Corp.(d) 9,512,235
124,450 State Street Corp. 8,540,381
255,000 U.S. Bancorp 9,387,188
---------------
42,574,510
---------------
ELECTRIC, GAS, & SANITARY SERVICES (1.4%)
118,100 Consolidated Natural Gas Co. 6,414,305
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (8.2%)
237,370 American Power Conversion Corp.(a)(d) 9,821,184
70,000 Emerson Electric Co. 4,550,000
100,000 General Electric Co. 9,050,000
65,400 Intel Corp. 7,038,675
106,300 Philips Electronics N.V.(d) 6,730,119
---------------
37,189,978
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT
(4.0%)
215,560 Gillette Co. 9,902,288
185,700 Newell Co.(d) 8,217,225
---------------
18,119,513
---------------
FEDERAL AGENCIES & INSTRUMENTALITIES (1.8%)
111,600 FNMA(d) 8,118,900
---------------
FOOD & KINDRED PRODUCTS (4.7%)
73,100 Coca-Cola Co. 5,121,569
367,000 International Home Foods, Inc.(a)(d) 7,202,375
232,500 PepsiCo, Inc. 8,994,844
---------------
21,318,788
---------------
GENERAL MERCHANDISE STORES (2.9%)
32,000 Consolidated Stores Corp.(a) 688,000
94,900 May Department Stores Co. 5,723,656
90,000 Wal-Mart Stores, Inc.(d) 6,778,125
---------------
13,189,781
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
VALUGROWTH STOCK FUND (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (6.9%)
97,337 Cisco Systems, Inc.(a) $ 7,336,776
197,000 Compaq Computer Corp.(d) 6,402,500
122,200 EMC Corp.(a) 8,859,500
145,900 Jabil Circuit, Inc.(a) 8,462,200
---------------
31,060,976
---------------
INSURANCE CARRIERS (6.5%)
216,100 Allstate Corp. 8,806,075
61,887 American International Group, Inc. 5,817,378
79,900 Chubb Corp.(d) 5,597,994
181,000 Citigroup, Inc. 9,083,937
---------------
29,305,384
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (8.5%)
110,000 Baxter International, Inc. 6,991,875
155,000 Becton, Dickinson & Co. 6,587,500
80,000 Guidant Corp.(d) 6,865,000
97,374 Honeywell, Inc.(d) 7,783,834
56,200 Medtronic, Inc. 3,804,038
61,000 Xerox Corp.(d) 6,557,500
---------------
38,589,747
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (1.4%)
186,000 Mattel, Inc.(d) 6,428,625
---------------
MISCELLANEOUS RETAIL (1.1%)
202,000 Borders Group, Inc. 4,898,500
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (1.5%)
195,000 CNF Transportation, Inc. 6,959,063
---------------
OIL & GAS EXTRACTION (1.8%)
181,900 Schlumberger Ltd. 8,128,656
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (3.9%)
100,000 Chevron Corp. 8,362,500
108,000 Mobil Corp. 9,308,250
---------------
17,670,750
---------------
REAL ESTATE INVESTMENT TRUST (1.4%)
242,147 Equity Office Properties 6,083,942
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (2.6%)
157,200 Franklin Resources, Inc.(d) 6,720,300
69,000 Merrill Lynch & Co., Inc.(d) 5,175,000
---------------
11,895,300
---------------
STONE, CLAY, GLASS, & CONCRETE PRODUCTS (1.7%)
422,200 Gentex Corp.(a) 7,757,925
---------------
WATER TRANSPORTATION (1.8%)
240,000 Carnival Corp. 8,280,000
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments
65
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
VALUGROWTH STOCK FUND (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
WHOLESALE TRADE-DURABLE GOODS (0.7%)
460,000 CellStar Corp.(a)(d) $ 2,961,250
---------------
TOTAL COMMON STOCKS (COST $311,672,405) 452,435,457
---------------
WARRANTS (0.0%)
28 Jan Bell Marketing, Inc.(a) 1
---------------
TOTAL WARRANTS (COST $0) 1
---------------
TOTAL INVESTMENTS (100.0%) (COST $311,672,405) $ 452,435,458
---------------
---------------
WRITTEN CALLS
(80,000) Call APCC Dec 98 @ 35 $ (610,000)
(270,000) Call EFII Jan 99 @ 25 (961,875)
(50,000) Call EMC Jan 99 @ 60 (675,000)
(70,000) Call JBL Dec 98 @ 40 (1,295,000)
(30,000) Call LGTO Dec98 @ 45 (118,125)
---------------
TOTAL WRITTEN CALLS $ (3,660,000)
---------------
---------------
- -----------------------------------------------------------------
DIVERSIFIED EQUITY FUND
- -----------------------------------------------------------------
N/A Index Portfolio of Core Trust
(Delaware)(f) $ 413,442,966
N/A Income Equity Portfolio of Core Turst
(Delaware)(f) 406,692,025
N/A Disciplined Growth Portfolio of Core
Trust (Delaware)(f) 80,562,819
N/A Large Company Growth Portfolio of Core
Trust (Delaware)(f) 341,053,167
N/A Small Cap Index Portfolio of Core Trust
(Delaware)(f) 32,250,948
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(f) 25,054,736
N/A Small Cap Value Portfolio of Core Trust
(Delaware)(f) 25,094,287
N/A Small Company Value Portfolio of Core
Trust (Delaware)(f) 37,497,435
N/A Small Company Growth Portfolio of Core
Trust (Delaware)(f) 38,689,311
N/A International Portfolio of Core Trust
(Delaware)(f) 236,453,885
N/A Schroder EM Core Portfolio of Schroder
Capital Funds(f) 2,983,748
---------------
TOTAL INVESTMENTS (100.0%) (COST $992,723,406) $ 1,639,775,327
---------------
---------------
- -----------------------------------------------------------------
GROWTH EQUITY FUND
- -----------------------------------------------------------------
N/A Large Company Growth Portfolio of Core
Trust (Delaware)(f) $ 349,374,591
N/A Small Cap Index Portfolio of Core Trust
(Delaware)(f) 66,799,900
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
GROWTH EQUITY FUND (continued)
- -----------------------------------------------------------------
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(f) $ 53,546,169
N/A Small Cap Value Portfolio of Core Trust
(Delaware)(f) 53,252,103
N/A Small Company Value Portfolio of Core
Trust (Delaware)(f) 75,939,953
N/A Small Company Growth Portfolio of Core
Trust (Delaware)(f) 81,079,628
N/A International Portfolio of Core Trust
(Delaware)(f) 276,114,100
N/A Schroder EM Core Portfolio of Schroder
Capital Funds(f) 3,419,377
---------------
TOTAL INVESTMENTS (100.0%) (COST $694,350,199) $ 959,525,821
---------------
---------------
- -----------------------------------------------------------------
LARGE COMPANY GROWTH FUND
- -----------------------------------------------------------------
N/A Large Company Growth Portfolio of Core
Trust (Delaware)(f) $ 363,962,141
---------------
TOTAL INVESTMENTS (100.0%) (COST $243,034,095) $ 363,962,141
---------------
---------------
- -----------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
- -----------------------------------------------------------------
N/A Small Cap Index Portfolio of Core Trust
(Delaware)(f) $ 7,300,175
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(f) 5,899,008
N/A Small Cap Value Portfolio of Core Trust
(Delaware)(f) 5,857,962
N/A Small Company Value Portfolio of Core
Trust (Delaware)(f) 8,786,076
N/A Small Company Growth Portfolio of Core
Trust (Delaware)(f) 8,686,282
---------------
TOTAL INVESTMENTS (100.0%) (COST $35,535,893) $ 36,529,503
---------------
---------------
- -----------------------------------------------------------------
SMALL COMPANY STOCK FUND
- -----------------------------------------------------------------
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(f) $ 68,524,651
---------------
TOTAL INVESTMENTS (100.0%) (COST $70,693,745) $ 68,524,651
---------------
---------------
- -----------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- -----------------------------------------------------------------
N/A Schroder U.S. Smaller Companies
Portfolio of Schroder Capital Funds(f) $ 256,299,257
---------------
TOTAL INVESTMENTS (100.0%) (COST $244,328,378) $ 256,299,257
---------------
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments
66
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONCLUDED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INTERNATIONAL FUND
- -----------------------------------------------------------------
N/A International Portfolio of Core Trust
(Delaware)(f) $ 265,083,897
N/A Schroder EM Core Portfolio of Schroder
Capital Funds(f) 3,189,597
---------------
TOTAL INVESTMENTS (100.0%) (COST $240,213,938) $ 268,273,494
---------------
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments
67
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
(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.
The Board of Trustees has deemed these securities to be liquid at November
30, 1998.
(c) Certain variable 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 rate shown reflects the rate in effect
on November 30, 1998.
(d) Part or all of this investment is on loan. See Note 6 of Notes to Financial
Statements.
(e) At November 30, 1998, $6,515,000 of U.S. Treasury Bills, 9/16/99, with a
market value of $6,297,268, were pledged to cover margin requirements for
open futures contracts.
(f) The following percentages represent each Fund's investments in their
respective Portfolios as of November 30, 1998:
<TABLE>
<CAPTION>
TOTAL
STABLE RETURN GROWTH INCOME DIVERSIFIED GROWTH
INCOME BOND BALANCED EQUITY EQUITY EQUITY
FUND FUND FUND FUND FUND FUND
-------- -------- -------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Stable Income Portfolio............ 61.55% N/A N/A N/A N/A N/A
Managed Fixed Income Portfolio..... N/A N/A 34.67% N/A N/A N/A
Positive Return Bond Portfolio..... N/A N/A 34.62% N/A N/A N/A
Strategic Value Bond Portfolio..... N/A 44.42% 17.93% N/A N/A N/A
Index Portfolio.................... N/A N/A 7.80% N/A 27.25% N/A
Income Equity Portfolio............ N/A N/A 5.66% 71.49% 19.33% N/A
Disciplined Growth Portfolio....... N/A N/A 13.90% N/A 47.29% N/A
Large Company Growth Portfolio..... N/A N/A 7.73% N/A 28.14% 28.83%
Small Cap Index Portfolio.......... N/A N/A 7.91% N/A 26.53% 54.94%
Small Company Stock Portfolio...... N/A N/A 4.66% N/A 15.16% 32.40%
Small Cap Value Portfolio.......... N/A N/A 7.18% N/A 23.35% 49.54%
Small Company Value Portfolio...... N/A N/A 8.25% N/A 26.70% 54.08%
Small Company Growth Portfolio..... N/A N/A 1.56% N/A 5.28% 11.07%
International Portfolio............ N/A N/A 7.94% N/A 26.49% 30.93%
Schroder U.S. Smaller Companies
Portfolio........................ N/A N/A N/A N/A N/A N/A
Schroder EM Core Portfolio......... N/A N/A 7.49% N/A 25.94% 29.72%
</TABLE>
<TABLE>
<CAPTION>
LARGE DIVERSIFIED SMALL
COMPANY SMALL COMPANY SMALL CAP
GROWTH CAP STOCK OPPORTUNITIES INTERNATIONAL
FUND FUND FUND FUND FUND
--------- ------------- -------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Stable Income Portfolio............ N/A N/A N/A N/A N/A
Managed Fixed Income Portfolio..... N/A N/A N/A N/A N/A
Positive Return Bond Portfolio..... N/A N/A N/A N/A N/A
Strategic Value Bond Portfolio..... N/A N/A N/A N/A N/A
Index Portfolio.................... N/A N/A N/A N/A N/A
Income Equity Portfolio............ N/A N/A N/A N/A N/A
Disciplined Growth Portfolio....... N/A N/A N/A N/A N/A
Large Company Growth Portfolio..... 30.03% N/A N/A N/A N/A
Small Cap Index Portfolio.......... N/A 6.00% N/A N/A N/A
Small Company Stock Portfolio...... N/A 3.57% 41.47% N/A N/A
Small Cap Value Portfolio.......... N/A 5.45% N/A N/A N/A
Small Company Value Portfolio...... N/A 6.26% N/A N/A N/A
Small Company Growth Portfolio..... N/A 1.19% N/A N/A N/A
International Portfolio............ N/A N/A N/A N/A 29.70%
Schroder U.S. Smaller Companies
Portfolio........................ N/A N/A N/A 80.93% N/A
Schroder EM Core Portfolio......... N/A N/A N/A N/A 27.73%
</TABLE>
[LOGO]
See Notes to Financial Statements
68
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED)(CONCLUDED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
ABBREVIATIONS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ADR American Depositary Receipts
AMBAC American Municipal Bond Assurance Corporation
AMBS Agriculture Mortgage Backed Securities
BIG Bond Insurance Group
C/O Crossover refunding
COLL Collateralized
COP Certificate of Participation
DOT Department of Transportation
EDA Economic Development Authority
ETM Escrowed to Maturity
FAMC Federal Agricultural Mortgage Corporation
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
IDA Industrial Development Authority
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
MFHR Multi Family Housing Revenue
PCR Pollution Control Revenue
PFA Public Finance Authority
RV Revenue Bonds
SD School District
SFM Single Family Mortgage
TVA Tennessee Valley Authority
VA Veterans' Administration
V/R Variable rate
</TABLE>
[LOGO]
See Notes to Financial Statements
69
<PAGE>
(This page has been left blank intentionally.)
[LOGO]
70
<PAGE>
SEMI-ANNUAL REPORT
NOVEMBER 30, 1998
STABLE INCOME PORTFOLIO
MANAGED FIXED INCOME PORTFOLIO
POSITIVE RETURN BOND PORTFOLIO
STRATEGIC VALUE BOND PORTFOLIO
INDEX PORTFOLIO
INCOME EQUITY PORTFOLIO
DISCIPLINED GROWTH PORTFOLIO
LARGE COMPANY GROWTH PORTFOLIO
SMALL CAP INDEX PORTFOLIO
SMALL COMPANY STOCK PORTFOLIO
SMALL CAP VALUE PORTFOLIO
SMALL COMPANY VALUE PORTFOLIO
SMALL COMPANY GROWTH PORTFOLIO
INTERNATIONAL PORTFOLIO
CORE TRUST (DELAWARE)
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC
STABLE MANAGED FIXED POSITIVE VALUE
INCOME INCOME RETURN BOND BOND INDEX
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments (Note 2)
Investments at cost........ $ 266,112,142 $353,394,793 $184,565,157 $ 234,240,033 $ 881,201,994
Repurchase agreements at
cost................... 27,006,503 26,947,260 43,463,734 8,001,860 36,086,650
Net unrealized appreciation
(depreciation)......... 1,584,752 7,561,558 23,546,724 4,950,014 599,043,722
------------- ------------- ------------- ------------- ---------------
TOTAL INVESTMENTS AT VALUE... 294,703,397 387,903,611 251,575,615 247,191,907 1,516,332,366
Collateral for securities
loaned (Notes 2 and 7)... 28,690,729 52,870,805 99,616,817 20,693,480 212,630,689
Cash......................... 37,601 - - - 2,336
Receivable for investments
sold..................... - - - - -
Receivable for dividends,
interest other
receivables.............. 3,324,980 4,713,668 2,462,968 3,346,361 2,153,187
Organization costs, net of
amortization (Note 2).... 7,835 7,782 7,782 - 5,785
------------- ------------- ------------- ------------- ---------------
TOTAL ASSETS.................. 326,764,542 445,495,866 353,663,182 271,231,748 1,731,124,363
------------- ------------- ------------- ------------- ---------------
LIABILITIES
Payable to custodian for
account overdraft (Note
3)....................... - - - - -
Payable for investments
purchased................ 5,000,000 14,263,314 - 5,806,420 -
Payable for securities loaned
(Notes 2 and 7).......... 28,690,729 52,870,805 99,616,817 20,693,480 212,630,689
Payable for daily variation
margin on financial
futures contracts (Note
2)....................... - - - - 1,150,725
Payable for forward foreign
currency contracts....... - - - - -
Payable to custodian (Note
3)....................... 3,598 4,144 3,173 3,172 13,531
Payable to investment adviser
(Note 3)................. 70,968 101,886 67,901 96,945 184,479
Payable to administrator
(Note 3)................. 3,730 - - - -
Accrued expenses and other
liabilities.............. 2,095 2,953 3,583 1,602 -
------------- ------------- ------------- ------------- ---------------
TOTAL LIABILITIES............. 33,771,120 67,243,102 99,691,474 26,601,619 213,979,424
------------- ------------- ------------- ------------- ---------------
NET ASSETS.................... $ 292,993,422 $378,252,764 $253,971,708 $ 244,630,129 $ 1,517,144,939
------------- ------------- ------------- ------------- ---------------
------------- ------------- ------------- ------------- ---------------
</TABLE>
See Notes to Financial Statements
CORE TRUST (DELAWARE)
72
<PAGE>
NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL SMALL SMALL
INCOME DISCIPLINED COMPANY CAP COMPANY CAP
EQUITY GROWTH GROWTH INDEX STOCK VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- ------------- --------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments (Note
2)
Investments at
cost......... $ 1,206,600,344 $ 149,199,229 $ 544,006,186 $ 135,576,333 $ 139,679,668 $ 97,945,170
Repurchase
agreements at
cost......... 60,475,583 3,427,716 - 4,810,392 15,309,274 6,586,078
Net unrealized
appreciation
(depreciation)... 832,165,204 17,763,435 667,201,795 (19,335,896) 11,275,443 3,993,836
--------------- ------------- --------------- ------------- ------------- -------------
TOTAL INVESTMENTS
AT VALUE....... 2,099,241,131 170,390,380 1,211,207,981 121,050,829 166,264,385 108,525,084
Collateral for
securities
loaned (Notes 2
and 7)......... 112,455,035 17,094,284 179,284,965 15,017,870 23,914,694 25,598,858
Cash............... - - - 583,875 - -
Receivable for
investments
sold........... - - 4,584,738 - - 62,165
Receivable for
dividends,
interest other
receivables.... 5,961,093 102,814 296,144 69,623 90,658 44,844
Organization costs,
net of
amortization
(Note 2)....... 10,359 - 10,223 - 2,091 -
--------------- ------------- --------------- ------------- ------------- -------------
TOTAL ASSETS........ 2,217,667,618 187,587,478 1,395,384,051 136,722,197 190,271,828 134,230,951
--------------- ------------- --------------- ------------- ------------- -------------
LIABILITIES
Payable to
custodian for
account
overdraft (Note
3)............. - - 3,598,482 - - -
Payable for
investments
purchased...... - - - - 976,928 1,049,532
Payable for
securities
loaned (Notes 2
and 7)......... 112,455,035 17,094,284 179,284,965 15,017,870 23,914,694 25,598,858
Payable for daily
variation
margin on
financial
futures
contracts (Note
2)............. - - - 93,325 - -
Payable for forward
foreign
currency
contracts...... - - - - - -
Payable to
custodian (Note
3)............. 18,371 2,517 10,957 1,886 2,460 1,708
Payable to
investment
adviser (Note
3)............. 856,867 126,350 632,059 24,592 122,945 82,154
Payable to
administrator
(Note 3)....... 40,286 5,238 31,866 - - 2,755
Accrued expenses
and other
liabilities.... - 4,787 - - 4,473 3,746
--------------- ------------- --------------- ------------- ------------- -------------
TOTAL LIABILITIES... 113,370,559 17,233,176 183,558,329 15,137,673 25,021,500 26,738,753
--------------- ------------- --------------- ------------- ------------- -------------
NET ASSETS.......... $ 2,104,297,059 $ 170,354,302 $ 1,211,825,722 $ 121,584,524 $ 165,250,328 $ 107,492,198
--------------- ------------- --------------- ------------- ------------- -------------
--------------- ------------- --------------- ------------- ------------- -------------
<CAPTION>
SMALL SMALL
COMPANY COMPANY
VALUE GROWTH INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ---------------
<S> <C> <C> <C>
ASSETS
Investments (Note
2)
Investments at
cost......... $ 138,105,468 $ 581,901,337 $ 847,379,560
Repurchase
agreements at
cost......... 6,562,787 50,292,318 -
Net unrealized
appreciation
(depreciation)... (4,414,339) 99,082,760 100,505,508
------------- ------------- ---------------
TOTAL INVESTMENTS
AT VALUE....... 140,253,916 731,276,415 947,885,068
Collateral for
securities
loaned (Notes 2
and 7)......... 8,550,252 - 59,013,222
Cash............... - - -
Receivable for
investments
sold........... 195,969 3,093,723 60,086
Receivable for
dividends,
interest other
receivables.... 132,539 118,227 2,518,616
Organization costs,
net of
amortization
(Note 2)....... 1,924 1,951 5,785
------------- ------------- ---------------
TOTAL ASSETS........ 149,134,600 734,490,316 1,009,482,777
------------- ------------- ---------------
LIABILITIES
Payable to
custodian for
account
overdraft (Note
3)............. - - 43,404,893
Payable for
investments
purchased...... 48,479 1,545,064 10,754,904
Payable for
securities
loaned (Notes 2
and 7)......... 8,550,252 - 59,013,222
Payable for daily
variation
margin on
financial
futures
contracts (Note
2)............. - - -
Payable for forward
foreign
currency
contracts...... - - 3,237,845
Payable to
custodian (Note
3)............. 2,133 7,194 46,303
Payable to
investment
adviser (Note
3)............. 103,347 536,463 318,281
Payable to
administrator
(Note 3)....... - 28,938 108,344
Accrued expenses
and other
liabilities.... 9,619 - 12,368
------------- ------------- ---------------
TOTAL LIABILITIES... 8,713,830 2,117,659 116,896,160
------------- ------------- ---------------
NET ASSETS.......... $ 140,420,770 $ 732,372,657 $ 892,586,617
------------- ------------- ---------------
------------- ------------- ---------------
</TABLE>
CORE TRUST (DELAWARE)
73
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MANAGED
STABLE FIXED POSITIVE STRATEGIC
INCOME INCOME RETURN BOND VALUE BOND INDEX
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income.............. $ - $ - $ - $ - $ 10,196,955
Interest income.............. 8,049,670 11,621,105 6,537,633 7,815,289 796,005
Securities lending income
(Note 2)................. 23,816 14,828 61,767 9,794 190,136
----------- ------------ ------------ ------------ -------------
TOTAL INVESTMENT INCOME....... 8,073,486 11,635,933 6,599,400 7,825,083 11,183,096
----------- ------------ ------------ ------------ -------------
EXPENSES
Advisory (Note 3)............ 412,434 610,527 407,428 598,832 1,058,572
Administration (Note 3)...... 68,739 87,218 58,204 59,883 352,857
Custody (Note 3)............. 21,268 24,964 19,161 19,497 78,092
Accounting (Note 3).......... 44,000 41,000 27,000 38,000 75,000
Legal........................ 358 464 310 323 1,875
Audit........................ 9,427 9,919 8,899 7,750 21,311
Trustees..................... 378 482 321 334 1,921
Amortization of organization
costs (Note 2)........... 1,116 1,110 1,110 - 3,036
Miscellaneous................ 4,647 5,096 1,048 1,473 27,046
----------- ------------ ------------ ------------ -------------
TOTAL EXPENSES................ 562,367 780,780 523,481 726,092 1,619,710
Fees waived (Note 4)........ (65,009) (87,218) (58,204) (59,883) (352,857)
----------- ------------ ------------ ------------ -------------
NET EXPENSES.................. 497,358 693,562 465,277 666,209 1,266,853
----------- ------------ ------------ ------------ -------------
NET INVESTMENT INCOME
(LOSS).................... 7,576,128 10,942,371 6,134,123 7,158,874 9,916,243
----------- ------------ ------------ ------------ -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on
Securities................. (41,864) 860,672 3,631,743 291,353 14,808,838
Foreign currency
transactions........... - - - - -
Financial futures
transactions........... - - - - (3,018,164)
----------- ------------ ------------ ------------ -------------
Net Realized Gain (Loss) on
Investments.............. (41,864) 860,672 3,631,743 291,353 11,790,674
Net Change in Unrealized
Appreciation
(Depreciation) on
Securities................. 1,245,316 2,302,807 12,200,983 3,120,414 75,959,297
Foreign currency
transactions........... - - - - -
Financial futures
transactions........... - - - - 2,933,775
----------- ------------ ------------ ------------ -------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments.............. 1,245,316 2,302,807 12,200,983 3,120,414 78,893,072
----------- ------------ ------------ ------------ -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... 1,203,452 3,163,479 15,832,726 3,411,767 90,683,746
----------- ------------ ------------ ------------ -------------
INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $8,779,580 $14,105,850 $21,966,849 $10,570,641 $ 100,599,989
----------- ------------ ------------ ------------ -------------
----------- ------------ ------------ ------------ -------------
(a) Net of foreign withholding
taxes of $1,011,363
</TABLE>
See Notes to Financial Statements
CORE TRUST (DELAWARE)
74
<PAGE>
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME DISCIPLINED LARGE COMPANY SMALL CAP SMALL COMPANY SMALL CAP
EQUITY GROWTH GROWTH INDEX STOCK VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- ------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income.............. $ 20,358,119 $ 621,063 $ 2,229,682 $ 461,256 $ 656,270 $ 278,319
Interest income.............. 849,831 113,229 367,173 176,997 414,056 154,296
Securities lending income
(Note 2)................. 153,249 23,148 157,450 33,240 19,893 11,610
-------------- -------------- ------------- -------------- ------------- --------------
TOTAL INVESTMENT INCOME....... 21,361,199 757,440 2,754,305 671,493 1,090,219 444,225
-------------- -------------- ------------- -------------- ------------- --------------
EXPENSES
Advisory (Note 3)............ 4,904,459 648,087 3,625,564 141,653 807,047 464,246
Administration (Note 3)...... 490,446 36,005 278,890 28,330 44,836 24,434
Custody (Note 3)............. 105,610 13,308 63,298 10,991 15,810 9,718
Accounting (Note 3).......... 39,000 33,000 39,000 71,000 32,000 29,500
Legal........................ 2,623 180 1,485 157 275 134
Audit........................ 5,082 7,449 4,100 7,838 6,601 7,425
Trustees..................... 2,710 195 1,498 159 266 135
Amortization of organization
costs (Note 2)........... 1,482 - 1,459 - 1,044 -
Miscellaneous................ 8,558 1,864 4,634 13,603 726 2,227
-------------- -------------- ------------- -------------- ------------- --------------
TOTAL EXPENSES................ 5,559,970 740,088 4,019,928 273,731 908,605 537,819
Fees waived (Note 4)........ (196,178) (30,767) (55,778) (28,330) (44,836) (21,679)
-------------- -------------- ------------- -------------- ------------- --------------
NET EXPENSES.................. 5,363,792 709,321 3,964,150 245,401 863,769 516,140
-------------- -------------- ------------- -------------- ------------- --------------
NET INVESTMENT INCOME
(LOSS).................... 15,997,407 48,119 (1,209,845) 426,092 226,450 (71,915)
-------------- -------------- ------------- -------------- ------------- --------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on
Securities................. 6,418,700 (5,630,288) 45,611,873 (565,663) (43,276,957) (17,245,784)
Foreign currency
transactions........... - - - - - -
Financial futures
transactions........... - - - (1,979,763) - -
-------------- -------------- ------------- -------------- ------------- --------------
Net Realized Gain (Loss) on
Investments.............. 6,418,700 (5,630,288) 45,611,873 (2,545,426) (43,276,957) (17,245,784)
Net Change in Unrealized
Appreciation
(Depreciation) on
Securities................. 25,297,096 7,019,638 140,507,576 (12,980,053) (4,650,297) (1,383,424)
Foreign currency
transactions........... - - - - - -
Financial futures
transactions........... - - - 1,073,650 - -
-------------- -------------- ------------- -------------- ------------- --------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments.............. 25,297,096 7,019,638 140,507,576 (11,906,403) (4,650,297) (1,383,424)
-------------- -------------- ------------- -------------- ------------- --------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... 31,715,796 1,389,350 186,119,449 (14,451,829) (47,927,254) (18,629,208)
-------------- -------------- ------------- -------------- ------------- --------------
INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $ 47,713,203 $ 1,437,469 $184,909,604 $ (14,025,737) $(47,700,804) $ (18,701,123)
-------------- -------------- ------------- -------------- ------------- --------------
-------------- -------------- ------------- -------------- ------------- --------------
(a) Net of foreign withholding
taxes of $1,011,363
<CAPTION>
SMALL
COMPANY SMALL COMPANY
VALUE GROWTH INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividend income.............. $ 963,331 $ 1,448,607 $ 6,092,755(a)
Interest income.............. 124,919 976,311 3,412,817
Securities lending income
(Note 2)................. 27,631 - 205,014
------------ ------------- -------------
TOTAL INVESTMENT INCOME....... 1,115,881 2,424,918 9,710,586
------------ ------------- -------------
EXPENSES
Advisory (Note 3)............ 610,072 3,339,914 2,013,817
Administration (Note 3)...... 33,893 185,551 671,272
Custody (Note 3)............. 12,675 44,631 246,652
Accounting (Note 3).......... 36,000 43,000 63,000
Legal........................ 190 1,094 1,976
Audit........................ 9,332 6,671 22,047
Trustees..................... 190 1,064 1,237
Amortization of organization
costs (Note 2)........... 960 972 3,036
Miscellaneous................ 3,203 2,999 25,227
------------ ------------- -------------
TOTAL EXPENSES................ 706,515 3,625,896 3,048,264
Fees waived (Note 4)........ (33,893) - (46,282)
------------ ------------- -------------
NET EXPENSES.................. 672,622 3,625,896 3,001,982
------------ ------------- -------------
NET INVESTMENT INCOME
(LOSS).................... 443,259 (1,200,978) 6,708,604
------------ ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on
Securities................. (4,071,752) (98,538,371) 42,340,224
Foreign currency
transactions........... - - (661,347)
Financial futures
transactions........... - - -
------------ ------------- -------------
Net Realized Gain (Loss) on
Investments.............. (4,071,752) (98,538,371) 41,678,877
Net Change in Unrealized
Appreciation
(Depreciation) on
Securities................. (19,535,248) (42,518,270) (102,411,147)
Foreign currency
transactions........... - - (4,868,950)
Financial futures
transactions........... - - -
------------ ------------- -------------
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments.............. (19,535,248) (42,518,270) (107,280,097)
------------ ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... (23,607,000) (141,056,641) (65,601,220)
------------ ------------- -------------
INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $(23,163,741) $(142,257,619) $(58,892,616)
------------ ------------- -------------
------------ ------------- -------------
(a) Net of foreign withholding
taxes of $1,011,363
</TABLE>
CORE TRUST (DELAWARE)
75
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC
STABLE MANAGED FIXED POSITIVE VALUE
INCOME INCOME RETURN BOND BOND INDEX
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
NET ASSETS, MAY 31, 1997...... $ - $ - $ - $ - $ 455,992,618
------------- ------------- ------------- ------------- ---------------
OPERATIONS
Net investment income
(loss)................... 13,556,855 18,213,362 11,929,000 7,290,368 18,212,835
Net realized gain (loss) on
investments sold......... 423,040 2,891,576 6,562,062 67,326 40,577,843
Net change in unrealized
appreciation
(depreciation) on
investments.............. 333,836 5,029,200 13,771,972 1,829,598 232,315,725
------------- ------------- ------------- ------------- ---------------
Net increase (decrease) in
net assets resulting from
operations............... 14,313,731 26,134,138 32,263,034 9,187,292 291,106,403
------------- ------------- ------------- ------------- ---------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions (Note 9)....... 329,276,657 374,891,352 255,480,588 254,050,881 791,000,962
Withdrawals.................. (84,881,467) (65,362,303) (63,633,906) (26,360,998) (152,820,060)
------------- ------------- ------------- ------------- ---------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. 244,395,190 309,529,049 191,846,682 227,689,883 638,180,902
------------- ------------- ------------- ------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 258,708,921 335,663,187 224,109,716 236,877,175 929,287,305
------------- ------------- ------------- ------------- ---------------
NET ASSETS, MAY 31, 1998...... 258,708,921 335,663,187 224,109,716 236,877,175 1,385,279,923
------------- ------------- ------------- ------------- ---------------
OPERATIONS
Net investment income
(loss)................... 7,576,128 10,942,371 6,134,123 7,158,874 9,916,243
Net realized gain (loss) on
investments sold......... (41,864) 860,672 3,631,743 291,353 11,790,674
Net change in unrealized
appreciation
(depreciation) on
investments.............. 1,245,316 2,302,807 12,200,983 3,120,414 78,893,072
------------- ------------- ------------- ------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ 8,779,580 14,105,850 21,966,849 10,570,641 100,599,989
------------- ------------- ------------- ------------- ---------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions (Note 9)....... 86,687,980 57,416,389 41,516,617 24,619,125 124,953,888
Withdrawals.................. (61,183,059) (28,932,662) (33,621,474) (27,436,812) (93,688,861)
------------- ------------- ------------- ------------- ---------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. 25,504,921 28,483,727 7,895,143 (2,817,687) 31,265,027
------------- ------------- ------------- ------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 34,284,501 42,589,577 29,861,992 7,752,954 131,865,016
------------- ------------- ------------- ------------- ---------------
NET ASSETS, NOVEMBER 30,
1998...................... $ 292,993,422 $378,252,764 $253,971,708 $ 244,630,129 $ 1,517,144,939
------------- ------------- ------------- ------------- ---------------
------------- ------------- ------------- ------------- ---------------
(a) Beginning of Period....... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Oct 1, 1997 Jun 1, 1997
</TABLE>
See Notes to Financial Statements
CORE TRUST (DELAWARE)
76
<PAGE>
FOR THE PERIOD ENDED MAY 31, 1998(a)
AND SIX MONTHS ENDED NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL
INCOME DISCIPLINED COMPANY SMALL CAP COMPANY
EQUITY GROWTH GROWTH INDEX STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- ------------- --------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
NET ASSETS, MAY 31, 1997...... $ - $ - $ - $ - $ -
--------------- ------------- --------------- ------------- --------------
OPERATIONS
Net investment income
(loss)................... 27,302,997 418,520 (254,889) 190,716 (903,690)
Net realized gain (loss) on
investments sold......... 21,124,145 (4,466,320) 103,483,455 (31,860) 75,015,565
Net change in unrealized
appreciation
(depreciation) on
investments.............. 331,743,519 11,172,163 175,686,535 (6,730,568) (41,102,519)
--------------- ------------- --------------- ------------- --------------
Net increase (decrease) in
net assets resulting from
operations............... 380,170,661 7,124,363 278,915,101 (6,571,712) 33,009,356
--------------- ------------- --------------- ------------- --------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions (Note 9)....... 1,656,178,203 127,393,238 1,039,939,974 130,179,195 462,417,317
Withdrawals.................. (80,546,731) (3,752,382) (236,856,954) (1,115,038) (270,557,970)
--------------- ------------- --------------- ------------- --------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. 1,575,631,472 123,640,856 803,083,020 129,064,157 191,859,347
--------------- ------------- --------------- ------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 1,955,802,133 130,765,219 1,081,998,121 122,492,445 224,868,703
--------------- ------------- --------------- ------------- --------------
NET ASSETS, MAY 31, 1998...... 1,955,802,133 130,765,219 1,081,998,121 122,492,445 224,868,703
--------------- ------------- --------------- ------------- --------------
OPERATIONS
Net investment income
(loss)................... 15,997,407 48,119 (1,209,845) 426,092 226,450
Net realized gain (loss) on
investments sold......... 6,418,700 (5,630,288) 45,611,873 (2,545,426) (43,276,957)
Net change in unrealized
appreciation
(depreciation) on
investments.............. 25,297,096 7,019,638 140,507,576 (11,906,403) (4,650,297)
--------------- ------------- --------------- ------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ 47,713,203 1,437,469 184,909,604 (14,025,737) (47,700,804)
--------------- ------------- --------------- ------------- --------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions (Note 9)....... 167,190,012 44,370,049 114,897,167 22,735,382 48,335,062
Withdrawals.................. (66,408,289) (6,218,435) (169,979,170) (9,617,566) (60,252,633)
--------------- ------------- --------------- ------------- --------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. 100,781,723 38,151,614 (55,082,003) 13,117,816 (11,917,571)
--------------- ------------- --------------- ------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 148,494,926 39,589,083 129,827,601 (907,921) (59,618,375)
--------------- ------------- --------------- ------------- --------------
NET ASSETS, NOVEMBER 30,
1998...................... $ 2,104,297,059 $ 170,354,302 $ 1,211,825,722 $ 121,584,524 $ 165,250,328
--------------- ------------- --------------- ------------- --------------
--------------- ------------- --------------- ------------- --------------
(a) Beginning of Period....... Jun 1, 1997 Oct 1, 1997 Jun 1, 1997 Apr 9, 1998 Jun 1, 1997
<CAPTION>
SMALL SMALL
SMALL CAP COMPANY COMPANY
VALUE VALUE GROWTH INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
NET ASSETS, MAY 31, 1997...... $ - $ - $ - $ 539,296,879
------------- ------------- -------------- --------------
OPERATIONS
Net investment income
(loss)................... (103,303) 1,194,736 (3,539,839) 10,517,288
Net realized gain (loss) on
investments sold......... (2,328,929) 49,410,647 157,449,385 18,785,716
Net change in unrealized
appreciation
(depreciation) on
investments.............. 5,377,263 1,904,286 (8,948,010) 78,979,779
------------- ------------- -------------- --------------
Net increase (decrease) in
net assets resulting from
operations............... 2,945,031 52,509,669 144,961,536 108,282,783
------------- ------------- -------------- --------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions (Note 9)....... 109,215,794 182,821,915 893,179,444 406,915,054
Withdrawals.................. (7,890,976) (87,806,139) (144,077,860) (103,309,130)
------------- ------------- -------------- --------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. 101,324,818 95,015,776 749,101,584 303,605,924
------------- ------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 104,269,849 147,525,445 894,063,120 411,888,707
------------- ------------- -------------- --------------
NET ASSETS, MAY 31, 1998...... 104,269,849 147,525,445 894,063,120 951,185,586
------------- ------------- -------------- --------------
OPERATIONS
Net investment income
(loss)................... (71,915) 443,259 (1,200,978) 6,708,604
Net realized gain (loss) on
investments sold......... (17,245,784) (4,071,752) (98,538,371) 41,678,877
Net change in unrealized
appreciation
(depreciation) on
investments.............. (1,383,424) (19,535,248) (42,518,270) (107,280,097)
------------- ------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ (18,701,123) (23,163,741) (142,257,619) (58,892,616)
------------- ------------- -------------- --------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions (Note 9)....... 29,098,264 28,966,601 53,458,663 85,535,600
Withdrawals.................. (7,174,792) (12,907,535) (72,891,507) (85,241,953)
------------- ------------- -------------- --------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. 21,923,472 16,059,066 (19,432,844) 293,647
------------- ------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 3,222,349 (7,104,675) (161,690,463) (58,598,969)
------------- ------------- -------------- --------------
NET ASSETS, NOVEMBER 30,
1998...................... $ 107,492,198 $ 140,420,770 $ 732,372,657 $ 892,586,617
------------- ------------- -------------- --------------
------------- ------------- -------------- --------------
(a) Beginning of Period....... Oct 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997
</TABLE>
CORE TRUST (DELAWARE)
77
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS(a)
-------------------------------------------
NET
INVESTMENT PORTFOLIO
INCOME NET TURNOVER
(LOSS) EXPENSES GROSS EXPENSES RATE
---------- ----------- -------------- --------
<S> <C> <C> <C> <C>
STABLE INCOME PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 5.51% 0.36% 0.41% 19.25%
June 1, 1997(b) to May 31, 1998....... 5.96% 0.37% 0.43% 37.45%
MANAGED FIXED INCOME PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 6.27% 0.40% 0.45% 16.61%
June 1, 1997(b) to May 31, 1998....... 6.53% 0.41% 0.46% 91.59%
POSITIVE RETURN BOND PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 5.27% 0.40% 0.45% 23.54%
June 1, 1997(b) to May 31, 1998....... 5.74% 0.41% 0.47% 68.18%
STRATEGIC VALUE BOND PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 5.98% 0.56% 0.61% 16.83%
October 1, 1997(b) to May 31, 1998.... 6.06% 0.58% 0.62% 134.56%
INDEX PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 1.41% 0.18% 0.23% 2.45%
June 1, 1997 to May 31, 1998.......... 1.60% 0.19% 0.24% 6.68%
June 1, 1996 to May 31, 1997.......... 2.03% 0.11% 0.31% 7.29%
November 1, 1995 to May 31, 1996...... 2.35% 0.17% 0.32% 7.21%
November 11, 1994(b) to October 31,
1995................................ 2.42% 0.17% 0.33% 7.73%
INCOME EQUITY PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 1.63% 0.55% 0.57% 2.29%
June 1, 1997(b) to May 31, 1998....... 1.76% 0.52% 0.57% 3.49%
DISCIPLINED GROWTH PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 0.07% 0.99% 1.03% 50.64%
October 1, 1997(b) to May 31, 1998.... 0.55% 1.01% 1.06% 68.08%
LARGE COMPANY GROWTH PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... (0.22%) 0.71% 0.72% 10.33%
June 1, 1997(b) to May 31, 1998....... (0.03%) 0.67% 0.73% 13.03%
SMALL CAP INDEX PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 0.75% 0.43% 0.48% 12.41%
April 9, 1998(b) to May 31, 1998...... 1.04% 0.52% 0.54% 2.25%
SMALL COMPANY STOCK PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... (0.25%) 0.96% 1.01% 63.71%
June 1, 1997(b) to May 31, 1998....... (0.27%) 0.95% 1.01% 166.16%
SMALL CAP VALUE PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... (0.15%) 1.06% 1.10% 58.07%
October 1, 1997(b) to May 31, 1998.... (0.17%) 1.08% 1.13% 79.43%
SMALL COMPANY VALUE PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 0.65% 0.99% 1.04% 47.47%
June 1, 1997(b) to May 31, 1998....... 0.69% 0.99% 1.04% 99.08%
SMALL COMPANY GROWTH PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... (0.32%) 0.98% 0.98% 66.00%
June 1, 1997(b) to May 31, 1998....... (0.41%) 0.93% 0.98% 123.36%
INTERNATIONAL PORTFOLIO
- -------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 1.50% 0.67% 0.68% 51.34%
June 1, 1997 to May 31, 1998.......... 1.23% 0.66% 0.68% 36.96%
June 1, 1996 to May 31, 1997.......... 1.53% 0.19% 0.67% 53.32%
November 1, 1995 to May 31, 1996...... 1.75% 0.23% 0.68% 17.58%
November 11, 1994(b) to October 31,
1995................................ 1.94% 0.25% 0.70% 28.19%
</TABLE>
- ----------------------------------
(a) Ratios for periods of less than one year are annualized.
(b) Commencement of operations.
See Notes to Financial Statements
CORE TRUST (DELAWARE)
78
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
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-one separate investment portfolios. These financial
statements relate to the following fourteen diversified portfolios
(individually, a "Portfolio" and, collectively, the "Portfolios"), which
commenced operations on the following dates:
<TABLE>
<S> <C>
Stable Income Portfolio................. June 1, 1997
Managed Fixed Income Portfolio.......... June 1, 1997
Positive Return Bond Portfolio.......... June 1, 1997
Strategic Value Bond Portfolio.......... October 1, 1997
Index Portfolio......................... November 11, 1994
Income Equity Portfolio................. June 1, 1997
Disciplined Growth Portfolio............ October 1, 1997
Large Company Growth Portfolio.......... June 1, 1997
Small Cap Index Portfolio............... April 9, 1998
Small Company Stock Portfolio........... June 1, 1997
Small Cap Value Portfolio............... October 1, 1997
Small Company Value Portfolio........... June 1, 1997
Small Company Growth Portfolio.......... June 1, 1997
International Portfolio................. November 11, 1994
</TABLE>
On June 1, 1997, the following transactions occurred: (1) Small Company
Portfolio was divided into Small Company Stock Portfolio, Small Company Value
Portfolio and Small Company Growth Portfolio; its assets were divided by
investment style; and (2) International Portfolio merged into another portfolio
of Core Trust, International Portfolio II. The combined portfolio was named
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
The 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 summarizes the significant accounting policies of the
Portfolios:
SECURITIES VALUATION--Short-term securities that mature in sixty 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. With respect to dividends on foreign securities, certain instances may
arise where a Portfolio is not notified of a dividend until after the ex-
dividend date has passed. In these instances, a dividend is recorded as soon as
the Portfolio is informed of the dividend. Dividend income is recorded net of
unrecoverable withholding tax. Interest income, including amortization of
premium or accretion of discount, 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. dollars 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.
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 includes net gain or loss on
contracts that have terminated by settlement or by the Portfolio entering into
offsetting commitments.
CORE TRUST (DELAWARE)
79
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
FUTURES CONTRACTS--Each Portfolio may invest in stock index futures contracts to
enhance return and hedge against a decline in the value of securities. 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. Each
Portfolio, through its custodian, receives 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 difficulty with the disposition of any securities held as collateral.
SECURITY LOANS--The Portfolios may receive compensation for lending securities
in the form of fees or by retaining a portion of interest on the investment
securities or 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.
ORGANIZATION COSTS--The costs incurred by Stable Income Portfolio, Managed Fixed
Income Portfolio, Positive Return Bond Portfolio, Index Portfolio, Income Equity
Portfolio, Large Company Growth Portfolio, Small Company Stock Portfolio, Small
Company Value Portfolio, Small Company Growth Portfolio, and International
Portfolio in connection with their organization 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.
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 in proportion to each Portfolio's net assets.
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER--The investment adviser of each Portfolio, except
International Portfolio, is Norwest Investment Management, Inc. ("Adviser"), an
indirect subsidiary of Norwest Corporation. The investment adviser of
International Portfolio is Schroder Capital Management International Inc.
("Schroder"). Schroder is a wholly owned U.S. subsidiary of Schroder
Incorporated, the wholly owned U.S. holding company subsidiary of Schroder PLC.
The Adviser has retained the services of certain of its affiliates as investment
subadvisers (Crestone Capital Management, Inc., Galliard Capital Management,
Inc., Peregrine Capital Management, Inc., and Smith Asset Management Group,
L.P.) on selected Portfolios. The fees related to subadvisor services are borne
directly by the Adviser and do not increase the overall fees paid by the
Portfolios to the Adviser. The investment advisory fee and the associated
subadviser is as follows:
<TABLE>
<CAPTION>
INVESTMENT
ADVISORY FEE SUBADVISER
-------------- ------------------------------
<S> <C> <C>
Galliard Capital Management,
Stable Income Portfolio................. 0.30% Inc.
Galliard Capital Management,
Managed Fixed Income Portfolio.......... 0.35% Inc.
Peregrine Capital Management,
Positive Return Bond Portfolio.......... 0.35% Inc.
Galliard Capital Management,
Strategic Value Bond Portfolio.......... 0.50% Inc.
Index Portfolio......................... 0.15% -
Income Equity Portfolio................. 0.50% -
Smith Asset Management Group,
Disciplined Growth Portfolio............ 0.90% L.P.
Peregrine Capital Management,
Large Company Growth Portfolio.......... 0.65% Inc.
Small Cap Index Portfolio............... 0.25% -
Crestone Capital Management,
Small Company Stock Portfolio........... 0.90% Inc.
Smith Asset Management Group,
Small Cap Value Portfolio............... 0.95% L.P.
Peregrine Capital Management,
Small Company Value Portfolio........... 0.90% Inc.
Peregrine Capital Management,
Small Company Growth Portfolio.......... 0.90% Inc.
International Portfolio................. 0.45% -
</TABLE>
ADMINISTRATIVE AND OTHER SERVICES--Forum Administrative Services, LLC ("FAdS")
is the administrator to Core Trust and receives a fee with respect to each
Portfolio (other than International Portfolio) at an annual rate of 0.05% of the
Portfolio's average daily net assets. With respect to International Portfolio,
FAdS receives a fee at an annual rate of 0.15% of the Portfolio's average daily
net assets.
Norwest Bank Minnesota, N.A. ("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
CORE TRUST (DELAWARE)
80
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH
AFFILIATES (CONTINUED)
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 Portfolio's remaining average daily net assets. With
respect to International Portfolio, Norwest receives a fee at an annual rate of
0.07% of the Portfolio's average daily net assets. Norwest also receives
transaction fees for providing services in connection with the securities
lending program.
OTHER SERVICE PROVIDER--Forum Accounting Services, LLC, an affiliate of FAdS,
provides portfolio accounting and interestholder recordkeeping services to each
Portfolio.
NOTE 4. WAIVERS
For the period ended November 30, 1998, fees waived by the Portfolio's service
providers were as follows:
<TABLE>
<CAPTION>
FEES WAIVED
BY FAdS
--------------
<S> <C>
Stable Income Portfolio................. $ 65,009
Managed Fixed Income Portfolio.......... 87,218
Positive Return Bond Portfolio.......... 58,204
Strategic Value Bond Portfolio.......... 59,883
Index Portfolio......................... 352,857
Income Equity Portfolio................. 196,178
Disciplined Growth Portfolio............ 30,767
Large Company Growth Portfolio.......... 55,778
Small Cap Index Portfolio............... 28,330
Small Company Stock Portfolio........... 44,836
Small Cap Value Portfolio............... 21,679
Small Company Value Portfolio........... 33,893
Small Company Growth Portfolio.......... -
International Portfolio................. -
</TABLE>
Schroder waived investment advisory fees of $46,282 for International Portfolio
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 interestholders in
proportion to their holdings of the Portfolios regardless of whether such
interest, dividends or gain have been distributed by the Portfolios.
NOTE 6. SECURITIES TRANSACTIONS
The following table presents the cost of purchases and proceeds from sales
(including maturities) of securities (excluding short-term investments) during
the period ended November 30, 1998, as well as the federal tax cost basis of
investments and related gross unrealized appreciation and depreciation for
federal income tax purposes as of November 30, 1998:
<TABLE>
<CAPTION>
COST OF PROCEEDS TAX UNREALIZED UNREALIZED
PURCHASES FROM SALES COST BASIS APPRECIATION DEPRECIATION
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Stable Income Portfolio........................... $ 114,979,772 $ 48,792,534 $ 293,118,645 $ 2,286,203 $ 701,451
Managed Fixed Income Portfolio.................... 97,532,243 56,843,359 380,342,053 9,689,354 2,127,796
Positive Return Bond Portfolio.................... 89,267,832 49,274,344 228,028,891 23,551,715 4,991
Strategic Value Bond Portfolio.................... 52,399,934 39,757,954 242,241,893 5,802,535 852,521
Index Portfolio................................... 71,930,420 33,612,735 917,288,644 620,686,840 21,643,118
Income Equity Portfolio........................... 86,473,013 43,604,681 1,267,075,927 840,306,939 8,141,735
Disciplined Growth Portfolio...................... 86,259,659 70,237,080 152,626,945 25,944,461 8,181,026
Large Company Growth Portfolio.................... 112,927,379 157,636,279 544,006,186 682,524,323 15,322,528
Small Cap Index Portfolio......................... 28,285,745 13,452,998 140,386,725 8,203,018 27,538,914
Small Company Stock Portfolio..................... 106,334,441 121,878,856 154,988,942 20,024,177 8,748,734
Small Cap Value Portfolio......................... 76,964,499 54,107,502 104,531,248 11,307,886 7,314,050
Small Company Value Portfolio..................... 75,959,809 62,516,602 144,668,255 11,891,756 16,306,095
Small Company Growth Portfolio.................... 470,477,934 528,110,612 632,193,655 134,781,569 35,698,809
International Portfolio........................... 436,460,749 352,321,890 847,379,560 164,762,916 64,257,408
<CAPTION>
NET
UNREALIZED
APPRECIATION
(DEPRECIATION)
-------------
<S> <C>
Stable Income Portfolio........................... $ 1,584,752
Managed Fixed Income Portfolio.................... 7,561,558
Positive Return Bond Portfolio.................... 23,546,724
Strategic Value Bond Portfolio.................... 4,950,014
Index Portfolio................................... 599,043,722
Income Equity Portfolio........................... 832,165,204
Disciplined Growth Portfolio...................... 17,763,435
Large Company Growth Portfolio.................... 667,201,795
Small Cap Index Portfolio......................... (19,335,896)
Small Company Stock Portfolio..................... 11,275,443
Small Cap Value Portfolio......................... 3,993,836
Small Company Value Portfolio..................... (4,414,339)
Small Company Growth Portfolio.................... 99,082,760
International Portfolio........................... 100,505,508
</TABLE>
CORE TRUST (DELAWARE)
81
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
NOTE 7. PORTFOLIO SECURITIES LOANED
As of November 30, 1998, certain Portfolios had loaned portfolio investments in
return for cash collateral which was invested in various short-term fixed income
securities. 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>
Stable Income Portfolio................. $ 26,971,630 $ 28,690,729
Managed Fixed Income Portfolio.......... 32,121,644 52,870,805
Positive Return Bond Portfolio.......... 98,264,219 99,616,817
Strategic Value Bond Portfolio.......... 20,228,500 20,693,480
Index Portfolio......................... 199,300,037 212,630,689
Income Equity Portfolio................. 108,560,652 112,455,035
Disciplined Growth Portfolio............ 16,010,111 17,094,284
Large Company Growth Portfolio.......... 167,733,040 179,284,965
Small Cap Index Portfolio............... 14,022,802 15,017,870
Small Company Stock Portfolio........... 22,259,057 23,914,694
Small Cap Value Portfolio............... 24,794,618 25,598,858
Small Company Value Portfolio........... 7,929,571 8,550,252
International Portfolio................. 54,623,863 59,013,222
</TABLE>
NOTE 8. CONCENTRATION OF CREDIT RISK
International Portfolio invests in countries which may involve greater risks.
The consequences of political, social and economic events in these markets may
have disruptive effects on the market prices of the Portfolio's investments.
NOTE 9. CONTRIBUTION OF SECURITIES
After the close of business on May 31, 1997, International Portfolio (prior to
June 1, 1997, named International Portfolio II) merged with a former portfolio
of Core Trust. In that transaction, International Portfolio acquired the assets
and assumed the liabilities of the former portfolio in exchange for an interest
in International Portfolio equal in value to the net asset value of the former
portfolio. The former portfolio had the same investment objective and investment
policies as International Portfolio. The merger, which was not subject to
interestholder approval, was accomplished without the recognition of gain or
loss. The former portfolio contributed net assets with a value of $232,334,610,
and the net assets of International Portfolio immediately after the transaction
was $771,507,344.
Also after the close of business on May 31, 1997, Small Company Portfolio (a
former Portfolio of Core Trust) divided into three portfolios-Small Company
Stock Portfolio, Small Company Growth Portfolio and Small Company Value
Portfolio. The assets of Small Company Portfolio (and the related liabilities)
were divided in accordance with the investment style to which the assets had
been allocated. The division, which was not subject to interestholder approval,
was accomplished without the recognition of gain or loss. Small Company
Portfolio's net assets were divided as follows: Small Company Stock Portfolio,
$178,533,353; Small Company Growth Portfolio, $167,525,486; and Small Company
Value Portfolio, $165,287,781.
In connection with the merger and divisions, and the contemporaneous
commencement of operations of certain portfolios on June 1, 1997, certain
investors contributed all or a portion of their net assets to the portfolios
listed in the following table.
<TABLE>
<CAPTION>
INVESTOR CONTRIBUTIONS
-----------------------------
NET UNREALIZED
PORTFOLIO ASSETS GAIN/(LOSS)
- ---------------------------------------- ------------- -------------
<S> <C> <C>
Stable Income Portfolio................. $ 205,865,654 $ 5,601
Managed Fixed Income Portfolio.......... 186,226,721 229,550
Positive Return Bond Portfolio.......... 186,707,645 (2,426,230)
Index Portfolio......................... 512,437,536 115,520,269
Income Equity Portfolio................. 955,691,053 110,368,720
Large Company Growth Portfolio.......... 615,745,586 276,554,260
Small Company Stock Portfolio........... 355,894,495 50,282,300
Small Company Value Portfolio........... 165,287,781 13,216,619
Small Company Growth Portfolio.......... 615,745,586 110,368,716
International Portfolio................. 232,334,610 33,714,226
</TABLE>
CORE TRUST (DELAWARE)
82
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
NOTE 9. CONTRIBUTION OF SECURITIES (CONTINUED)
Additionally, on September 15, 1997, certain investors contributed net assets to
the portfolios listed in the following table:
<TABLE>
<CAPTION>
INVESTOR CONTRIBUTIONS
-----------------------------
NET UNREALIZED
PORTFOLIO ASSETS GAIN/(LOSS)
- ---------------------------------------- ------------- -------------
<S> <C> <C>
Income Equity Portfolio................. $ 477,132,067 $190,138,062
Small Company Stock Portfolio........... 45,144,489 6,745,993
Small Company Growth Portfolio.......... 140,475,014 40,180,322
</TABLE>
CORE TRUST (DELAWARE)
83
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
STABLE INCOME PORTFOLIO
- -----------------------------------------------------------------
ASSET BACKED SECURITIES (22.6%)
3,500,000 AESOP Funding II LLC, Series 1997-1 A1,
6.22% V/R, 10/20/01 $ 3,553,672
1,144,336 AFC Home Equity Loan Trust Series 1995-2
A1, 7.14% V/R, 7/25/26 1,144,398
5,000,000 Chase Credit Card Master Trust,
Series 1998-6 A, 5.54% V/R, 9/15/04 5,003,125
5,000,000 Chevy Chase Master Credit Card Trust,
Series 1998-A B, 5.68% V/R, 10/15/06 4,944,530
1,769,760 Commercial Loan Funding Trust, Series I
A, 5.89% V/R, 8/15/05 1,765,336
3,770,000 Deutsche Floorplan Receivables Master
Trust, Series 1996-1 A, 5.77% V/R,
10/15/01 3,771,489
2,500,000 Discover Card Master Trust I, Series
1997-4 A, 5.48% V/R, 4/16/03 2,494,562
4,000,000 DreamWorks Firm Trust, 5.88%, 10/17/05 3,989,376
1,500,000 EQCC Home Equity Loan Trust,
Series 1995-3 A4, 7.10%, 2/15/12 1,542,097
5,000,000 EQCC Home Equity Loan Trust,
Series 1998-4, 5.00%, 12/18/98 5,000,000
403,204 First Merchants Auto Receivables Corp.,
Series 1996-A A2, 6.70%, 7/17/00(b) 406,246
881,875 First Merchants Grantor Trust, Series
1996-2 A, 6.85%, 11/15/01(b) 893,591
5,000,000 First USA Credit Card Master Trust,
Series 1995-5 A, 5.48% V/R, 4/15/03 4,998,325
3,500,000 Fremont Small Business Loan Master
Trust, Series C A, 5.75% V/R, 5/15/02 3,504,182
3,993,851 Green Tree Financial Corp., Series
1993-4 A3, 6.25%, 1/15/19 4,013,241
988,390 Green Tree Financial Corp., Series
1994-1 A3, 6.90%, 4/15/19 996,599
766,872 Green Tree Financial Corp., Series
1995-5 A3, 6.25%,9/15/26 768,401
3,500,000 HCLT, Series 1997-1 A3, 5.76%, 3/15/07 3,484,372
5,000,000 HCLT, Series 1997-2 A3, 5.81%, 11/15/07 4,933,205
2,400,000 Keystone Home Improvement Loan Trust,
Series 1997-P2 IA3, 6.99%, 4/25/14 2,411,626
4,500,000 Loop Funding Master Trust,
Series 1997-A144 B1, 5.62%, 12/26/07 4,445,860
2,734,369 Sequoia Mortgage Trust, Series 2A1,
6.49% V/R, 10/25/24 2,709,175
---------------
TOTAL ASSET BACKED SECURITIES (COST $66,890,965) 66,773,408
---------------
COLLATERALIZED MORTGAGE OBLIGATIONS (19.1%)
1,589,652 DLJ Mortgage Acceptance Corp.,
Series 1998-STF1 A1, 5.66% V/R, 2/8/00 1,583,691
5,000,000 FHLMC, Series 2091 NA, 5.50%, 3/15/04 5,008,400
5,000,000 FHLMC, Series 2091 PC, 6.00%, 6/15/16 5,059,415
195,818 FNMA, Series 1993-39 FA, 6.68% V/R,
4/25/23 196,424
5,315,139 FNMA, Series 1994-M2 A, 6.63%, 2/25/01 5,408,234
2,915,666 Federal Agricultural Mortgage Corp.,
Series CS-1012 1, 7.06%, 7/25/02 3,025,003
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
STABLE INCOME PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
<TABLE>
<C> <S> <C>
2,903,323 GMAC, Series 1996-C1 A1, 6.16% V/R,
2/15/06 $ 2,888,037
1,643,275 Independent National Mortgage Corp.,
Series 1994-V M, 8.30%, 12/25/24 1,680,191
3,183,729 Independent National Mortgage Corp.,
Series 1994-X A2, 8.32%, 1/25/25 3,245,573
2,716,784 MLCC Mortgage Investors, Inc.,
Series 1994-A A2, 6.09% V/R, 7/15/19 2,711,202
3,000,000 MLCC Mortgage Investors, Inc.,
Series 1994-A AE, 6.49% V/R, 7/15/19 3,024,645
1,307,767 MLCC Mortgage Investors, Inc.,
Series 1994-B A2, 6.29% V/R, 12/15/19 1,308,284
1,553,847 MLMI, Inc., Series 1983-I A2, 6.09% V/R,
11/15/23 1,554,539
1,046,424 MLMI, Inc., Series 1987-C A, 10.10%,
12/15/07 1,053,126
510,791 MLMI, Inc., Series 1994-I A1, 7.88% V/R,
1/25/05 513,000
3,000,000 PRAT, Series 1997-1 B, 6.55%, 9/6/03 3,062,025
520,844 RFMSI ARM, Series 1989-5A, 7.35% V/R,
10/25/19 517,243
215,103 RFMSI ARM, Series 1991-21 BA, 7.47% V/R,
8/25/21 220,707
299,841 RTC, Series 1991-6 E, 11.57% V/R,
5/25/24 302,913
35,377 RTC, Series 1991 M6 A3, 8.66% V/R,
6/25/21 35,289
539,816 RTC, Series 1992-4 A2, 7.45% V/R,
7/25/28 540,834
1,675,259 RTC, Series 1992-18P A4, 6.26% V/R,
4/25/28(b) 1,675,260
2,052,283 RTC, Series 1992-C2 A2, 6.69%
V/R,10/25/21 2,062,904
1,539,473 RTC, Series 1992-C3 A3, 6.84% V/R,
8/25/23 1,539,474
470,134 RTC, Series 1994-C1 A3, 5.86% V/R,
6/25/26 470,442
1,173,326 RTC, Series 1995-1 A3, 7.14% V/R,
10/25/28 1,179,220
522,696 RTC, Series 1995-2 A1B, 7.15%, 5/25/29 522,432
502,028 RTC, Series 1995 C2 A2, 5.765 V/R,
5/25/27 502,781
5,375,000 Vendee Mortgage Trust, Series 1993-1 E,
7.00%, 1/15/16 5,460,962
---------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS ($56,428,785) 56,352,250
---------------
CORPORATE BONDS & NOTES (15.1%)
4,037,000 Chase Manhattan Corp., 10.13%, 11/1/00 4,383,298
2,500,000 Corestates Capital Corp., 9.63%, 2/15/01 2,706,805
2,775,000 Firstar Bank Milwaukee, 6.25%, 12/1/02 2,842,363
3,200,000 General Electric Capital Corp., 6.29%,
12/15/07 3,272,352
4,000,000 McDonald's Corp., 6.00%, 6/23/02 4,096,004
2,750,000 Merrill Lynch & Co., Inc., 5.32%,
5/30/01 2,742,811
3,475,000 Newell Co., 6.18%, 7/11/00 3,516,887
2,300,000 Philip Morris Cos., Inc., 6.15%, 3/15/00 2,326,910
2,750,000 Racers, Series 1998-MM-8-3, 5.16% V/R,
1/20/99(b) 2,750,228
1,500,000 Transamerica Financal, 6.41%, 6/20/00 1,513,519
1,000,000 Transamerica Financial, 6.36%, 6/26/00 1,008,379
4,750,000 Tyco International Ltd., 6.50%, 11/1/01 4,869,296
2,650,000 U.S. Bank N.A. North Dakota, 5.29% V/R,
6/20/01 2,639,617
2,000,000 USAA Capital Corp., 5.97%, 8/4/99 2,004,862
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
84
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
STABLE INCOME PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
CORPORATE BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
3,400,000 V.F. Corp., 9.50%, 5/1/01 $ 3,734,832
---------------
TOTAL CORPORATE BONDS & NOTES (COST $43,855,974) 44,408,163
---------------
GOVERNMENT AGENCY BONDS & NOTES (7.2%)
2,000,000 FHLB, 7.11%, 7/8/99 2,023,474
18,000,000 FHLB, 5.57%, 8/17/00 18,198,360
1,000,000 FNMA, 8.70%, 6/10/99 1,018,320
---------------
TOTAL GOVERNMENT AGENCY BONDS & NOTES (COST $21,025,877)
21,240,154
---------------
MORTGAGE BACKED SECURITIES (8.0%)
FHLMC (0.5%)
191,604 Pool 410220, 7.46% V/R, 10/1/25 193,330
867,458 Pool 845151, 7.40% V/R, 6/1/22 903,250
314,827 Pool 846367, 7.66% V/R, 4/1/29 319,387
---------------
TOTAL FHLMC (COST $1,400,428) 1,415,967
---------------
FNMA (4.4%)
1,287,665 Pool 155506, 7.20% V/R, 4/1/22 1,354,714
6,549,948 Pool 160334, 6.93% V/R, 3/1/01 6,722,061
2,423,004 Pool 190815, 5.46% V/R, 7/1/17 2,478,419
532,784 Pool 220706, 7.26% V/R, 6/1/23 560,750
689,382 Pool 318464, 7.31% V/R, 4/1/25 717,344
631,865 Pool 321051, 7.45% V/R, 8/1/25 657,898
248,273 Pool 331866, 7.51% V/R, 12/1/25 258,570
252,383 Pool 46698, 7.01% V/R, 12/1/15 261,686
---------------
TOTAL FNMA (COST $12,811,014) 13,011,442
---------------
SBA (3.1%)
107,748 Pool 500025, 8.13% V/R, 12/25/10 112,866
56,200 Pool 500276, 10.13% V/R, 5/25/07 60,275
123,520 Pool 500299, 9.88% V/R, 6/25/07 129,388
96,386 Pool 500569, 10.13% V/R, 6/25/08 103,133
524,696 Pool 500664, 8.13% V/R, 3/25/04 539,665
613,384 Pool 500806, 6.50% V/R, 2/25/14 628,719
426,980 Pool 500957, 8.50% V/R, 7/25/14 454,734
110,473 Pool 501017, 6.63% V/R, 9/25/14 113,235
463,384 Pool 501224, 7.00% V/R, 6/25/15 477,286
58,988 Pool 501973, 9.88% V/R, 12/25/01 60,611
237,916 Pool 502083, 8.13% V/R, 11/25/04 243,567
129,104 Pool 502241, 8.13% V/R, 4/25/03 130,396
262,231 Pool 502583, 9.48% V/R, 9/25/03 272,393
78,331 Pool 502966, 9.48% V/R, 5/25/15 86,625
183,943 Pool 502974, 8.63% V/R, 1/25/10 195,367
695,600 Pool 503405, 8.63% V/R, 5/25/16 762,551
2,099,494 Pool 503611, 7.88% V/R, 12/27/21 2,252,341
1,325,107 Pool 503658, 9.13% V/R, 9/27/10 1,426,179
1,112,025 Pool 503664, 8.73% V/R, 1/25/13 1,195,759
---------------
TOTAL SBA (COST $9,404,430) 9,245,090
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $23,615,872) 23,672,499
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
STABLE INCOME PORTFOLIO (continued)
- -----------------------------------------------------------------
MUNICIPAL BONDS & NOTES (7.1%)
3,300,000 Connecticut State, GO Bonds, Taxable
Series A, 5.70%, 1/15/01 $ 3,364,175
2,740,000 Cow Creek Band, 6.20%, 7/1/03(b) 2,805,521
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 3,215,699
4,000,000 New York State, GO Bonds, Series C,
6.13%, 3/1/02 4,144,728
5,000,000 New York City, GO Bonds, Series K,
6.10%, 8/1/01 5,154,330
1,870,000 Washington State, GO Bonds, State
Housing Trust Fund, Series T, 6.60%,
1/1/01 1,931,463
170,000 York County, PA, Tax-Exempt Economic
Development RV, 5.45%, 12/30/98 170,129
---------------
TOTAL MUNICIPAL BONDS & NOTES (COST $20,210,022) 20,786,045
---------------
REPURCHASE AGREEMENT (9.2%)
27,006,503 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98, to be repurchased at
$27,010,629 (cost $27,006,503)(d) 27,006,503
---------------
U.S. TREASURY NOTES (11.7%)
33,000,000 8.50%, 2/15/00 (cost $34,084,647)(c) 34,464,375
---------------
TOTAL INVESTMENTS (100.0%) (COST $293,118,645) $ 294,703,397
---------------
---------------
- -----------------------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO
- -----------------------------------------------------------------
ASSET BACKED SECURITIES (12.2%)
4,000,000 Chevy Chase Master Credit Card Trust,
Series 1998-A B, 5.68%, 10/16/06 $ 3,955,624
1,800,000 ContiMortgage Home Equity Loan Trust,
Series 1997-4, 6.63% V/R, 9/15/16 1,798,983
2,441,000 EQCC Home Equity Loan Trust,
Series 1996-2 A4, 7.50%, 6/15/21 2,557,855
4,900,000 EQCC Home Equity Loan Trust,
Series 1997-2A9, 6.81%, 8/15/28 5,117,658
1,169,290 First Merchants Auto Receivables Corp.,
Series 1996-A A2, 6.70%, 7/17/00 1,178,113
1,000,000 GE Capital Mortgage Services, Inc.,
Series 1997 HE-2 A7, 7.12%, 6/25/27 1,051,780
9,732,935 Green Tree Financial Corp., Series
1997-7 A8, 6.86%, 9/15/16 9,863,308
616,375 Green Tree Home Improvement Loan Trust,
Series 1995-F A4, 6.15%, 1/15/21 625,116
3,000,000 Keystone Home Improvement Loan Trust,
Series 1997-P2 IA3, 6.99%, 4/25/14 3,014,532
2,300,000 Keystone/Lehman Title I Loan Trust
1996-2, 7.45%, 11/25/10 2,404,749
3,300,000 Loop Funding Master Trust I,
Series 1997-A144 B1, 5.62% V/R,
12/26/07(b) 3,260,298
6,693,000 Oakwood Mortgage Investors Inc.,
Series 1995-A A3, 7.10%, 9/15/20 6,983,958
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
85
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
ASSET BACKED SECURITIES (continued)
<TABLE>
<C> <S> <C>
5,518,000 Rental Car Finance Corp. Series 1997-1
B3, 6.70%, 9/25/07 $ 5,581,805
---------------
TOTAL ASSET BACKED SECURITIES (COST $46,564,425) 47,393,779
---------------
COLLATERALIZED MORTGAGE OBLIGATIONS (12.1%)
1,287,342 American Housing Trust, Series VI I-I,
9.15%, 5/25/20 1,367,659
1,500,000 Asset Securitization Corp., Series
1997-D4 A1C, 7.42%, 4/14/29 1,637,918
1,646,445 CMC Securities Corp. II, Series 1993-2I
A2, 6.67% V/R, 9/25/23 1,653,566
2,672,693 FAMC Series CS-1012 1, 7.06% V/R,
7/25/02 2,772,920
750,000 FHLMC, Series 1832 D, 6.50%, 6/15/08 764,638
320,278 FNMA, Series 1988-5 Z, 9.20%, 3/25/18 335,432
1,499,555 First Plus Home Loan Trust, Series
1996-2 A6, 7.85%, 8/20/13 1,546,611
2,925,416 Independent National Mortgage Corp.,
Series 1994-V M, 8.30%, 12/25/24 2,991,136
1,303,047 L.F. Rothschild Mortgage Trust, Series
2Z, 9.95%, 8/1/17 1,421,390
626,879 MLMI, Inc., Series 1994-I, 7.88% V/R,
1/25/05 629,591
5,000,000 MLMI, Inc., Series 1997-C1 A3, 7.12%,
6/18/29 5,366,525
2,150,000 RFMSI, Series 1994-S13 A2, 7.00%,
5/25/24 2,160,051
258,061 RTC, Series 1991-M5 A, 9.00%, 3/25/17 260,031
1,511,485 RTC, Series 1992-4 A2, 7.45% V/R,
7/25/28 1,514,334
1,960,127 RTC, Series 1995-1 A2C, 7.50%, 10/25/28 1,967,135
1,000,000 RTC, Series 1995-1 A2D, 7.50%, 10/25/28 1,010,898
1,000,000 RTC, Series 1995-2 A1C, 7.45%, 5/25/29 1,016,775
651,265 Vendee Mortgage Trust, Series 1992-2 2D,
7.75%, 12/15/14 657,449
3,927,693 Vendee Mortgage Trust, Series 1992-2 G,
7.25% V/R, 2/15/19 4,122,071
3,250,000 Vendee Mortgage Trust, Series 1995-1C
3E, 8.00%, 7/15/18 3,348,018
5,500,000 Vendee Mortgage Trust, Series 1996-2 1E,
6.75%, 5/15/20 5,643,588
3,000,000 Vendee Mortgage Trust, Series 1997-1 2C,
7.50%, 9/15/17 3,070,302
1,500,000 Vendee Mortgage Trust, Series 1997-1 2D,
7.50%, 1/15/19 1,545,147
---------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST
$46,226,858) 46,803,185
---------------
CORPORATE BONDS & NOTES (35.9%)
600,000 Applied Materials, Inc., 6.70%, 9/6/05 620,392
5,400,000 Applied Materials, Inc., 7.00%, 9/6/05 5,703,167
1,700,000 Bausch & Lomb, Inc., 6.56%, 8/12/26 1,779,854
3,600,000 Cargill, Inc., 8.35%, 2/12/11 3,996,000
700,000 Charles Schwab Corp., 7.19%, 5/31/01 724,496
2,000,000 Charles Schwab Corp., 6.25%, 1/23/03 2,029,040
2,000,000 Charles Schwab Corp., 6.88%, 9/2/03 2,092,076
3,400,000 Citicorp, 9.50%, 2/1/02 3,742,676
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
CORPORATE BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
1,500,000 Colonial Pipeline Co., 7.13%, 8/15/02 $ 1,593,055
2,236,331 Continental Airlines, Inc., 7.15%,
6/30/07 2,316,917
2,500,000 Continental Airlines, Inc., 6.80%,
7/2/07 2,542,762
2,175,000 Corestates Capital Corp., 5.88%,
10/15/03 2,172,788
750,000 Corestates Capital Corp., 6.00% V/R,
1/15/27(b) 725,501
3,000,000 Dayton Hudson Co., 5.90%, 6/15/37 3,030,126
1,000,000 El Paso Natural Gas, 7.75%, 1/15/02 1,057,600
200,000 First Bank N.A., 6.00%, 10/15/03 204,608
1,300,000 First Bank Systems, Inc., 7.63%, 5/1/05 1,435,303
2,500,000 First Bank Systems, Inc., 8.00%, 5/1/05 2,780,523
3,000,000 Florida Residential Property & Casualty,
7.25%, 7/1/02(b) 3,104,334
1,700,000 Hyundai Semiconductor, 8.25%, 5/15/04(b) 1,416,205
1,500,000 LG-Caltex Corp., 7.88%, 7/1/06(b) 1,035,525
2,500,000 Lehman Brothers, Inc., 7.50%, 8/1/26 2,518,112
5,065,000 Levi Strauss & Co., 6.80%, 11/1/03(b) 5,137,409
2,500,000 Lincoln National Corp., 7.25%, 5/15/05 2,638,000
2,000,000 May Department Stores, 9.88%, 6/15/00 2,127,834
1,060,000 Nabisco, Inc., 6.00%, 2/15/11 1,063,778
5,635,000 Oracle Corp., 6.72%, 2/15/04 5,882,207
1,250,000 Paine Webber Group, Inc., 6.90%, 8/15/03 1,277,351
2,650,000 Paine Webber Group, Inc., 6.45%, 12/1/03 2,661,130
5,000,000 Pep Boys, 6.71%, 11/3/04 5,092,560
1,305,000 Petroliam Nasional Berhad, 6.63%,
10/18/01(b) 1,175,800
2,750,000 Philip Morris Cos., Inc., 7.63%, 5/15/02 2,913,012
2,500,000 Philip Morris Cos., Inc., 7.50%, 4/1/04 2,684,300
2,709,000 Philips Electronics, 6.75%, 8/15/03 2,835,884
2,000,000 Potomac Capital Investment Corp., 7.32%,
4/14/00 2,032,040
2,450,000 Prudential Insurance Co., 7.65%, 7/1/07 2,673,207
2,000,000 R & B Falcon Corp., 6.75%, 4/15/05 1,917,926
3,000,000 Raytheon Co., 5.95%, 3/15/01 3,042,366
5,200,000 Reinsurance Group of America, 7.25%,
4/1/06(b) 5,625,023
4,000,000 Reliastar Financial Corp., 7.13%, 3/1/03 4,149,264
2,500,000 Reynolds & Reynolds, 7.00%, 12/15/06 2,690,928
1,750,000 Royal Caribbean Cruises, 7.13%, 9/18/02 1,785,819
3,325,000 Scholastic Corp., 7.00%, 12/15/03 3,476,660
3,000,000 Susa Partnership LP, 8.20%, 6/1/17 3,024,528
2,200,000 Terra Nova Holdings, 7.20%, 8/15/07 2,286,011
3,000,000 Texas Utilities Co., 6.20%, 10/1/02(b) 3,066,933
3,000,000 Tommy Hilfiger, 6.50%, 6/1/03 2,959,626
2,100,000 Transamerica Financial, 6.41%, 6/20/00 2,118,927
750,000 Tyco International Ltd., 6.50% 11/1/01 768,836
2,500,000 Tyco International Ltd., 6.38%, 1/15/04 2,563,433
1,050,000 USA Waste Services, Inc., 7.00%, 10/1/04 1,110,656
885,000 United Missouri Bancshares, 7.30%,
2/24/03 944,696
1,000,000 Universal Corp., 9.25%, 2/15/01 1,078,044
6,500,000 Van Kampen CLO-I, 5.62% V/R, 10/8/07(b) 6,435,632
250,000 Vastar Resources, Inc., 6.95%, 11/8/06 260,974
850,000 Whitman Corp., 7.50%, 2/1/03 904,522
1,970,000 Whitman Corp., 7.29%, 9/15/26 2,127,273
---------------
TOTAL CORPORATE BONDS & NOTES (COST $136,856,752) 139,153,649
---------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
86
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO (continued)
- -----------------------------------------------------------------
MORTGAGE BACKED SECURITIES (14.4%)
FHLMC (0.6%)
333,625 Pool 410425, 7.87% V/R, 9/1/26 $ 347,698
140,460 Pool 410464, 7.65% V/R, 11/1/26 141,842
1,031,827 Pool 606279, 6.92% V/R, 2/1/15 1,069,716
944,481 Pool 846367, 7.76% V/R, 4/1/29 958,161
---------------
TOTAL FHLMC (COST $2,500,920) 2,517,417
---------------
FNMA (12.9%)
1,456,071 Pool 73272, 6.48%, 12/1/05 1,522,223
3,441,861 Pool 73919, 6.80%, 1/1/04 3,612,437
179,972 Pool 342042, 7.33% V/R, 6/1/25 187,288
561,474 Pool 344689, 7.48% V/R, 11/1/25 584,714
397,068 Pool 344692, 7.27% V/R, 10/1/25 413,118
287,953 Pool 347712, 7.40% V/R, 6/1/26 299,785
4,938,148 Pool 375168, 7.13% V/R, 6/1/04 5,276,974
5,896,242 Pool 402870, 6.50%, 1/1/28 5,944,650
5,389,985 Pool 408118, 6.50%, 1/1/28 5,434,238
4,752,391 Pool 415414, 6.50%, 2/1/28 4,790,744
8,614,074 Pool 415714, 6.00%, 4/1/28 8,513,289
4,723,192 Pool 417648, 6.00%, 2/1/13 4,733,253
7,132,075 Pool 421825, 6.50%, 4/3/28 7,185,567
1,642,594 Pool 440148, 6.50%, 1/1/26 1,655,850
---------------
TOTAL FNMA (COST $49,297,056) 50,154,130
---------------
GNMA (0.9%)
58 Pool 665, 7.50%, 5/15/01 59
850 Pool 2218, 6.50%, 12/15/02 860
3,318,837 Pool 473917, 7.00%, 4/15/28 3,401,808
---------------
TOTAL GNMA (COST $3,374,133) 3,402,727
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $55,172,109) 56,074,274
---------------
MUNICIPAL BONDS & NOTES (2.1%)
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 3,705,905
3,805,000 Hudson County, NJ, Import Authority
Facilities, Leasing RV, FSA insured,
7.40%, 12/1/25 4,307,081
---------------
TOTAL MUNICIPAL BONDS & NOTES (COST $7,409,751) 8,012,986
---------------
U.S. TREASURY OBLIGATIONS (16.4%)
U.S. TREASURY NOTES (5.6%)
9,000,000 U.S. Treasury Notes, 7.88%,11/15/04 10,442,817
10,000,000 U.S. Treasury Notes, 7.00%, 7/15/06 11,378,130
---------------
TOTAL U.S. TREASURY NOTES (COST $21,966,094) 21,820,947
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
U.S. TREASURY OBLIGATIONS (continued)
<TABLE>
<C> <S> <C>
U.S. TREASURY BONDS (10.8%)
34,550,000 U.S. Treasury Bonds, 6.75%, 8/15/26(c)
(cost $39,198,804) $ 41,697,531
---------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $61,164,898) 63,518,478
---------------
REPURCHASE AGREEMENTS (6.9%)
26,947,260 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98, to be repurchased at
$26,951,377 (cost $26,947,260)(d) 26,947,260
---------------
TOTAL INVESTMENTS (100.0%) (COST $380,342,053) $ 387,903,611
---------------
---------------
- -----------------------------------------------------------------
POSITIVE RETURN BOND PORTFOLIO
- -----------------------------------------------------------------
U.S. TREASURY BONDS (82.7%)
58,525,000 6.00%, 2/15/26(c) $ 64,395,818
56,075,000 6.50%, 11/15/26(c) 65,747,938
31,750,000 6.63%, 2/15/27(c) 37,832,125
34,600,000 6.38%, 8/15/27(c) 40,136,000
---------------
TOTAL U.S. TREASURY BONDS (COST $184,565,157) 208,111,881
---------------
REPURCHASE AGREEMENT (17.3%)
43,463,734 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98, to be repurchased at
$43,470,373 (cost $43,463,734)(d) 43,463,734
---------------
TOTAL INVESTMENTS (100.0%) (COST $228,028,891) $ 251,575,615
---------------
---------------
- -----------------------------------------------------------------
STRATEGIC VALUE BOND PORTFOLIO
- -----------------------------------------------------------------
ASSET BACKED SECURITIES (8.1%)
3,000,000 Aesop Funding II LLC, Series 1998-1 A,
6.14%, 5/20/06 $ 3,049,335
3,500,000 Chevy Chase Master Credit Card Trust,
Series 1998-6 A, 5.54% V/R, 9/15/04 3,461,172
2,000,000 Dollar Thrifty Rent A Car, 6.70%,
9/25/07 2,023,126
3,237,000 EQCC Home Equity Loan Trust,
Series 1998-1 A6F, 6.25%, 12/15/07 3,257,150
2,919,881 Green Tree Financial Corp., Series
1997-7 A8, 6.86%, 9/15/16 2,958,992
2,000,000 Loop Funding Master Trust, Series
1997-AER B1, 5.62% V/R, 12/26/07(b) 1,975,938
2,000,000 Oakwood Mortgage Investors, Inc.,
Series 1995-A A3, 7.10% V/R, 9/15/20 2,086,944
1,171,873 Sequoia Mortgage Trust, Series 2 A1,
6.42% V/R, 10/25/24 1,161,075
---------------
TOTAL ASSET BACKED SECURITIES (COST $19,862,456) 19,973,732
---------------
COLLATERALIZED MORTGAGE OBLIGATIONS (9.1%)
1,500,000 Bear Stearns Structured Securities,
Inc., Series 1997-2 1A2, 7.00%,
8/25/36 1,522,734
1,943,777 FAMC, Series CS-1012 1, 7.06% V/R,
7/25/02 2,016,669
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
87
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
STRATEGIC VALUE BOND PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
<TABLE>
<C> <S> <C>
2,500,000 FHLMC Structured Pass Through
Securities, Series T-8 A4, 7.00%,
8/15/13 $ 2,561,550
2,300,000 GNMA, Series 1998-14 PD, 6.00%, 6/20/23 2,319,263
4,000,000 MLMI, Inc., Series 1997-C1 A3, 7.12%
V/R, 6/18/29 4,293,220
1,571,077 Vendee Mortgage Trust, Series 1992-2 G,
7.25% V/r, 2/15/19 1,648,828
4,500,000 Vendee Mortgage Trust, Series 1994-1 2E,
6.50%, 1/15/17 4,577,580
3,500,000 Vendee Mortgage Trust, Series 1996-2 1E,
6.75%, 5/15/20 3,591,375
---------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST
$22,158,747) 22,531,219
---------------
CORPORATE BONDS & NOTES (43.1%)
750,000 AK Steel Corp., 9.13%, 12/15/06 795,000
1,250,000 American Standard Cos., Inc., 7.13%,
2/15/03(c) 1,257,504
2,500,000 Applied Materials, Inc., 7.00%, 9/6/05 2,640,355
525,000 Aramark Services, Inc., 6.75%, 8/1/04 528,240
1,000,000 Atlas Air, Inc., 9.25%, 4/15/08(b) 1,002,500
1,000,000 Barrett Resources Corp., 7.55%, 2/1/07 1,020,423
2,000,000 Bausch & Lomb, Inc., 6.75%, 12/15/04 2,095,896
2,000,000 Bear Stearns Co., Inc., 6.13%, 2/1/03 2,012,008
500,000 Buckeye Technologies, Inc., 8.50%,
12/15/05 522,500
1,000,000 Calenergy Co., Inc., 7.23%, 9/15/05 1,025,929
500,000 Chancellor Media Group, 9.38%, 10/1/04 520,000
3,000,000 Charles Schwab Corp., 6.88%, 9/2/03 3,138,114
3,000,000 Continental Airlines, 6.80%, 7/2/07 3,051,315
2,500,000 Corestates Capital Corp., 9.63%, 2/15/01 2,706,805
2,500,000 Dayton Hudson Co., 5.90%, 6/15/37 2,525,105
3,000,000 Equitable Life Assurance Society, 6.95%,
12/1/05(b) 3,178,857
2,000,000 Farmers Exchange Capital, 7.20%,
7/15/48(b) 2,027,058
500,000 Federal Mogul Corp., 7.50%, 7/1/04 496,435
2,500,000 First Bank Systems, Inc., 8.00%, 7/2/04 2,780,523
1,000,000 Fred Meyer, Inc., 7.38%, 3/1/05 1,049,004
500,000 GS Escrow Corp., 7.13%, 8/1/05(b) 493,556
2,000,000 Genfinance Luxembourg SA, 6.34%, 5/29/49 1,930,000
500,000 HMH Properties, 7.88%, 8/1/05 498,750
1,000,000 Kroger Co., 8.15%, 7/17/06 1,123,848
2,000,000 Levi Strauss & Co., 6.80%, 11/1/03(b) 2,028,592
2,500,000 Lincoln National Corp., 7.00%, 3/15/18 2,579,448
500,000 Lyondell Petrochemical, 9.80%, 2/1/20 508,280
750,000 MGM Grand, Inc., 6.95%, 2/1/05 720,243
1,000,000 Mallinckrodt, Inc., 6.30%, 3/15/01(b) 1,004,720
2,500,000 Massachusetts Institute of Technology,
7.25%, 11/2/96 2,972,390
1,000,000 Nabisco, Inc., 6.00%, 2/15/11 1,003,564
500,000 Niagara Mohawk Power, 7.38%, 7/1/03 512,290
1,000,000 Northwest Airlines Corp., 8.38%, 3/15/04 1,019,026
2,225,000 Old Kent Financial Corp., 6.63%,
11/15/05 2,329,335
2,500,000 Oracle Corp., 6.72%, 2/15/04 2,609,675
750,000 Outdoor Systems, Inc., 8.88%, 6/15/07 798,750
1,000,000 Owens-Illinois, Inc., 7.85%, 5/15/04 1,041,011
2,000,000 Pep Boys, 6.71%, 11/3/04 2,037,024
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
STRATEGIC VALUE BOND PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
CORPORATE BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
2,500,000 Philip Morris Cos., Inc., 7.50%, 4/1/04 $ 2,684,300
1,400,000 Potomac Capital Investmnt, 7.05%,
10/2/01 1,433,834
1,250,000 Premier Parks, Inc., 9.25%, 4/1/06(c) 1,320,313
1,750,000 Prudential Insurance Co., 7.65%, 7/1/07 1,909,433
1,000,000 R & B Falcon Corp., 6.75%, 4/15/05(b) 958,963
500,000 Randall's Food Markets, 9.38%, 7/1/07 542,500
2,000,000 Raytheon Co., 5.95%, 3/15/01 2,028,244
500,000 Regal Cinemas, Inc., 9.50%, 6/1/08 527,500
2,500,000 Reinsurance Group of America, 7.25%,
4/1/06(b) 2,724,525
2,500,000 Reliastar Financial Corp., 7.13%, 3/1/03 2,593,290
3,000,000 Royal Caribbean Cruises, 7.13%, 9/18/02 3,061,404
500,000 Sinclair Broadcast Group, 8.75%,
12/15/05 507,500
2,500,000 Susa Partnership LP, 8.20%, 6/1/17 2,520,440
1,000,000 Teekay Shipping Corp., 8.32%, 2/1/08 1,002,500
1,000,000 Tenet Healthcare Corp., 7.88%, 1/15/03 1,024,651
2,500,000 Tenneco, Inc., 10.08%, 2/1/01 2,714,267
2,500,000 Terra Nova (U.K.) Holdings, 7.20%,
8/15/07 2,597,740
1,875,000 Texas Utilities Co., 6.20%, 10/1/02(b) 1,916,833
1,400,000 Tommy Hilfiger, 6.50%, 6/1/03 1,381,158
1,250,000 Tricon Global Restaurants, 7.65%,
5/15/08 1,294,067
1,000,000 Triton Energy Ltd. Corp., 8.75%, 4/15/02 962,500
2,500,000 United Telecommunications, Inc., 9.50%,
4/1/03 2,879,247
3,500,000 Van Kampen, CLO-I, 5.62%, 10/8/07(b) 3,465,339
1,000,000 Western Financial Savings, 8.50%, 7/1/03 845,586
2,000,000 Whitman Corp., 7.29%, 9/15/26 2,159,668
2,000,000 Williams Cos., Inc., 6.13%, 2/15/02 2,036,024
---------------
TOTAL CORPORATE BONDS & NOTES (COST $105,420,760) 106,675,899
---------------
GOVERNMENT AGENCY BONDS & NOTES (4.2%)
2,250,000 FNMA, 6.85%, 4/5/04 2,419,821
7,350,945 FNMA, 6.16%, 8/7/28 7,974,313
---------------
TOTAL GOVERNMENT AGENCY BONDS & NOTES
(COST $9,227,858) 10,394,134
---------------
INVESTMENT IN LIMITED PARTNERSHIP (0.3%)
616,000 PPM America CBO II, 12/18/04 (cost
$616,000) 660,352
---------------
MORTGAGE BACKED SECURITIES (18.6%)
FNMA (10.9%)
1,966,778 Pool 73919, 6.80%, 1/1/04 2,064,249
1,975,259 Pool 375168, 7.13%, 6/1/04 2,110,790
2,984,894 Pool 380268, 6.20%, 5/2/05 3,080,823
3,224,508 Pool 402870, 6.50%, 1/1/28 3,250,981
1,959,995 Pool 408118, 6.50%, 1/3/28 1,976,086
2,475,204 Pool 415414, 6.50%, 2/1/28 2,495,179
3,911,118 Pool 415714, 6.00%, 4/1/28 3,865,358
3,022,843 Pool 417648, 6.00%, 2/1/13 3,029,282
5,046,215 Pool 429604, 6.00%, 6/1/28 4,984,717
---------------
TOTAL FNMA (COST $26,367,867) 26,857,465
---------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
88
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
STRATEGIC VALUE BOND PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
MORTGAGE BACKED SECURITIES (continued)
<TABLE>
<C> <S> <C>
GNMA (7.7%)
2,938,367 Pool 345066, 6.50%, 10/15/23 $ 2,976,301
2,881,217 Pool 346960, 6.50%, 12/15/23 2,918,414
2,695,600 Pool 354692, 6.50%, 11/15/23 2,730,400
3,253,279 Pool 361398, 6.50%, 1/15/24 3,293,848
3,354,617 Pool 366641, 6.50%, 11/15/23 3,397,925
3,605,249 Pool 473918, 7.00%, 5/22/28 3,695,380
---------------
TOTAL GNMA (COST $18,809,833) 19,012,268
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $45,177,700) 45,869,733
---------------
MUNICIPAL BONDS & NOTES (3.5%)
2,000,000 Hudson County, NJ, Import Authority
Facilities, Leasing RV, FSA Insured,
7.40%, 12/1/25 2,263,906
3,160,000 New York City, GO Bonds, Series K,
6.10%, 8/1/01 3,257,537
1,045,000 Washington State, GO Bonds, State
Housing Trust Fund, Series T, 6.60%,
1/1/03 1,101,085
2,010,000 Western Minnesota, Power Agency RV,
Series A, AMBAC Insured, 6.33%, 1/1/02 2,066,822
---------------
TOTAL MUNICIPAL BONDS & NOTES (COST $8,287,371) 8,689,350
---------------
REPURCHASE AGREEMENT (3.2%)
8,001,860 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98, to be repurchased at
$8,003,083 (cost $8,001,860)(d) 8,001,860
---------------
U.S. TREASURY OBLIGATIONS (9.9%)
5,000,000 U.S. Treasury Note, 7.00%, 7/15/06 5,689,065
15,500,000 U.S. Treasury Bond, 6.75%, 8/15/26(c) 18,706,563
---------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $23,489,141) 24,395,628
---------------
TOTAL INVESTMENTS (100.0%) (COST $242,241,893) $ 247,191,907
---------------
---------------
- -----------------------------------------------------------------
INDEX PORTFOLIO
- -----------------------------------------------------------------
COMMON STOCKS (97.3%)
AGRICULTURAL PRODUCTION--CROPS (0.1%)
38,000 Pioneer Hi-Bred International, Inc. $ 1,137,625
---------------
AMUSEMENT & RECREATION SERVICES (0.7%)
15,900 Harrah's Entertainment, Inc.(a) 247,444
321,800 Walt Disney Co. 10,357,937
---------------
10,605,381
---------------
APPAREL & ACCESSORY STORES (0.5%)
61,700 Gap, Inc. 4,538,806
35,800 Limited, Inc. 1,035,963
23,400 Nordstrom, Inc. 871,650
49,800 TJX Cos., Inc. 1,276,125
---------------
7,722,544
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(0.1%)
10,400 Liz Claiborne, Inc. $ 352,300
19,100 V.F. Corp. 937,094
---------------
1,289,394
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (0.1%)
24,000 Autozone, Inc.(a) 723,000
10,100 Pep Boys--Manny, Moe & Jack 142,662
---------------
865,662
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING (0.0%)
11,500 Ryder System, Inc. 328,469
---------------
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE
BUILDERS (0.1%)
9,400 Centex Corp. 335,462
6,200 Kaufman & Broad Home Corp. 156,163
6,800 Pulte Corp. 172,975
---------------
664,600
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS (0.9%)
230,800 Home Depot, Inc. 11,482,300
55,200 Lowe's Cos., Inc. 2,332,200
---------------
13,814,500
---------------
BUSINESS SERVICES (6.1%)
56,400 3Com Corp.(a) 2,181,975
10,500 Adobe Systems, Inc.(c) 469,875
34,400 Ascend Communications, Inc.(a)(c) 1,932,850
7,400 Autodesk, Inc. 269,175
47,300 Automatic Data Processing, Inc. 3,642,100
32,400 BMC Software, Inc.(a) 1,654,425
25,800 Cabletron Systems, Inc.(a) 361,200
134,800 Cendant Corp.(a)(c) 2,561,200
11,400 Ceridian Corp.(a) 741,712
88,100 Computer Associates International, Inc. 3,898,425
24,800 Computer Sciences Corp. 1,416,700
77,300 Electronic Data Systems Corp.(c) 3,014,700
23,300 Equifax, Inc.(c) 966,950
70,200 First Data Corp. 1,873,462
67,700 HBO & Co. 1,688,269
26,100 IMS Health, Inc. 1,732,387
21,400 Interpublic Group of Cos., Inc. 1,471,250
387,100 Microsoft Corp.(a)(c) 47,226,200
55,500 Novell, Inc.(a) 919,219
26,600 Omnicom Group, Inc.(c) 1,421,438
152,900 Oracle Corp.(a) 5,236,825
42,800 Parametric Technology Co.(a) 727,600
36,200 PeopleSoft, Inc.(a)(c) 744,363
4,100 Shared Medical Systems Corp.(c) 214,738
59,600 Sun Microsystems, Inc.(a) 4,414,125
29,200 UST, Inc. 1,014,700
---------------
91,795,863
---------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
89
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
CHEMICALS & ALLIED PRODUCTS (13.3%)
241,900 Abbott Laboratories $ 11,611,200
36,400 Air Products & Chemicals, Inc. 1,387,750
8,700 Alberto Culver Co. 222,937
10,300 Allergan, Inc. 627,012
13,600 Alza Corp.(a) 710,600
41,400 Avon Products, Inc. 1,681,875
44,900 Baxter International, Inc. 2,853,956
156,300 Bristol-Myers Squibb Co. 19,156,519
16,400 Clorox Co. 1,821,425
46,400 Colgate-Palmolive Co. 3,973,000
35,200 Dow Chemical Co.(c) 3,427,600
177,800 E.I. Du Pont de Nemours & Co. 10,445,750
12,400 Eastman Chemical Co. 718,425
20,400 Ecolab, Inc. 631,125
173,000 Eli Lilly & Co. 15,515,937
5,400 FMC Corp.(a) 313,875
11,600 Goodrich (B.F.) Co. 440,075
9,300 Great Lakes Chemical Corp. 371,419
14,900 Hercules, Inc. 489,837
16,900 International Flavors & Fragrances,
Inc.(c) 707,687
211,300 Johnson & Johnson 17,168,125
11,500 Mallinckrodt, Inc. 371,594
187,000 Merck & Co., Inc. 28,961,625
94,400 Monsanto Co.(c) 4,277,500
20,500 Morton International, Inc. 603,469
10,400 Nalco Chemical Co. 347,750
205,300 Pfizer, Inc. 22,916,612
79,800 Pharmacia & Upjohn, Inc. 4,154,588
27,800 PPG Industries, Inc. 1,701,013
24,800 Praxair, Inc. 947,050
210,600 Procter & Gamble Co. 18,453,825
28,000 Rohm & Haas Co.(c) 978,250
115,300 Schering-Plough Corp. 12,265,038
27,100 Sherwin-Williams Co. 768,963
15,800 Sigma-Aldrich Corp. 507,575
21,300 Union Carbide Corp.(c) 953,175
11,900 W.R. Grace & Co.(a) 196,350
129,000 Warner-Lambert Co. 9,739,500
---------------
202,420,006
---------------
COMMUNICATIONS (8.6%)
283,800 AT&T Corp.(c) 17,684,287
90,100 Airtouch Communications, Inc.(a) 5,152,594
43,100 Alltel Corp. 2,284,300
173,100 Ameritech Corp.(c) 9,369,037
244,000 Bell Atlantic Corp.(c) 13,572,500
154,500 BellSouth Corp. 13,480,125
112,500 CBS Corp.(a)(c) 3,353,906
39,000 Clear Channel Communications, Inc. 1,823,250
58,000 Comcast Corp., Class A(c) 2,820,250
26,900 Frontier Corp. 810,363
151,400 GTE Corp. 9,386,800
11,500 King World Productions, Inc.(a) 313,375
95,700 MediaOne Group, Inc.(a) 3,875,850
44,900 Nextel Communications, Inc.(a)(c) 965,350
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
COMMUNICATIONS (continued)
<TABLE>
<C> <S> <C>
311,800 SBC Communications, Inc. $ 14,946,913
67,500 Sprint Corp. (FON Group) 4,910,625
65,950 Sprint Corp. (PCS Group)(a) 1,055,200
82,200 Tele-Communications, Inc.(a) 3,472,950
78,800 US West, Inc. 4,905,300
279,000 WorldCom, Inc.(a) 16,461,000
---------------
130,643,975
---------------
DEPOSITORY INSTITUTIONS (7.2%)
45,000 BB&T Corp.(c) 1,662,187
117,400 Bank of New York Co., Inc. 4,020,950
183,896 Bank One Corp. 9,436,164
272,957 BankAmerica Corp. 17,793,385
46,200 BankBoston Corp. 1,923,075
15,100 Bankers Trust New York Corp. 1,313,700
134,600 Chase Manhattan Corp. 8,538,687
24,500 Comerica, Inc. 1,580,250
42,100 Fifth Third Bancorp 2,794,388
152,200 First Union Corp.(c) 9,246,150
89,200 Fleet Financial Group, Inc.(c) 3,718,525
9,100 Golden West Financial Corp.(c) 861,656
33,200 Huntington Bancshares, Inc. 983,550
27,700 J.P. Morgan & Co., Inc. 2,960,437
69,100 KeyCorp 2,120,506
40,900 Mellon Bank Corp. 2,574,144
23,900 Mercantile Bancorp 1,053,094
51,800 National City Corp. 3,483,550
17,500 Northern Trust Corp. 1,413,125
47,300 PNC Bank Corp. 2,438,906
33,600 Regions Financial Corp. 1,302,000
17,000 Republic New York Corp. 794,750
25,300 State Street Corp. 1,736,212
27,300 Summit Bancorp 1,141,481
32,800 Suntrust Banks, Inc.(c) 2,289,850
41,400 Synovus Financial Corp. 913,388
116,700 U.S. Bancorp 4,296,019
20,000 Union Planters Corp. 952,500
32,400 Wachovia Corp. 2,828,925
93,160 Washington Mutual, Inc. 3,609,950
254,300 Wells Fargo & Co. 9,154,800
---------------
108,936,304
---------------
EATING & DRINKING PLACES (0.6%)
21,900 Darden Restaurants, Inc.(c) 346,294
107,600 McDonald's Corp. 7,538,725
24,000 Tricon Global Restaurants, Inc.(a) 1,093,500
20,000 Wendy's International, Inc. 400,000
---------------
9,378,519
---------------
ELECTRIC, GAS & SANITARY SERVICES (3.4%)
27,600 AES Corp.(a) 1,262,700
21,600 Ameren Corp.(c) 889,650
30,000 American Electric Power Co.(c) 1,391,250
23,400 Baltimore Gas & Electric Co. 718,087
27,300 Browning-Ferris Industries(c) 805,350
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
90
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
ELECTRIC, GAS & SANITARY SERVICES (continued)
<TABLE>
<C> <S> <C>
23,800 Carolina Power & Light Co. $ 1,103,725
33,300 Central & Southwest Corp. 915,750
24,900 CINergy Corp. 860,606
33,400 Coastal Corp. 1,164,825
13,100 Columbia Energy Group 743,425
36,800 Consolidated Edison Co. 1,869,900
15,100 Consolidated Natural Gas Co. 820,119
22,800 DTE Energy Co.(c) 994,650
30,900 Dominion Resources, Inc. 1,427,194
56,700 Duke Energy Corp.(c) 3,547,294
3,200 Eastern Enterprises 129,800
55,500 Edison International 1,526,250
51,800 Enron Corp.(c) 2,722,737
38,700 Entergy Corp.(c) 1,134,394
28,500 FPL Group, Inc. 1,745,625
37,300 FirstEnergy Corp. 1,153,969
20,100 GPU, Inc.(c) 880,631
46,500 Houston Industries, Inc.(c) 1,470,563
51,800 Laidlaw, Inc. 514,762
17,800 New Century Energies, Inc. 855,512
29,500 Niagara Mohawk Power Corp.(a) 453,562
7,500 Nicor, Inc. 315,469
23,800 Northern States Power Co. 647,063
4,900 Oneok, Inc. 170,581
23,800 PP&L Resources, Inc. 650,038
60,000 Pacific Gas & Electric Co. 1,856,250
46,700 PacifiCorp 875,625
35,000 Peco Energy Co. 1,404,375
5,500 People's Energy Corp. 207,281
36,500 Public Service Enterprise Group, Inc. 1,423,500
37,900 Sempra Energy 949,869
17,300 Sonat, Inc. 513,594
109,600 Southern Co. 3,233,200
43,900 Texas Utilities Co. 1,956,294
89,800 Waste Management, Inc.(c) 3,850,175
66,800 Williams Cos., Inc. 1,924,675
---------------
51,080,319
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (8.1%)
34,300 AMP, Inc. 1,659,262
22,600 Advanced Micro Devices, Inc. 625,737
4,400 Aeroquip-Vickers, Inc. 160,050
13,500 Andrew Corp.(a) 216,000
18,200 Cooper Industries, Inc. 894,075
69,200 Emerson Electric Co. 4,498,000
511,100 General Electric Co. 46,254,550
23,700 General Instrument Corp.(a) 666,562
12,500 Harris Corp. 474,219
263,900 Intel Corp. 28,402,237
22,200 LSI Logic Corp.(a) 344,100
206,600 Lucent Technologies, Inc. 17,780,513
14,400 Maytag Corp. 779,400
33,400 Micron Technology, Inc.(a) 1,379,838
94,000 Motorola, Inc. 5,828,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
<TABLE>
<C> <S> <C>
25,800 National Semiconductor Corp.(a) $ 370,875
6,500 National Service Industries 251,063
102,400 Northern Telecom Ltd.(c) 4,780,800
13,200 Raychem Corp. 449,625
11,800 Scientific-Atlanta, Inc. 228,625
30,500 Tellabs, Inc.(a) 1,648,906
61,300 Texas Instruments, Inc.(c) 4,681,788
8,900 Thomas & Betts Corp.(c) 385,481
11,900 Whirlpool Corp. 666,400
---------------
123,426,106
---------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (0.2%)
26,800 Dun & Bradstreet Corp.(c) 809,025
7,200 EG&G, Inc. 201,150
25,600 Paychex, Inc. 1,273,600
---------------
2,283,775
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT
(0.8%)
4,800 Ball Corp. 205,200
10,800 Crane Co. 348,975
19,500 Crown Cork & Seal Co., Inc. 658,125
27,100 Fortune Brands, Inc. 923,094
176,400 Gillette Co. 8,103,375
17,400 Parker-Hannifin Corp. 604,650
9,300 Snap-On, Inc. 316,200
13,900 Stanley Works 424,819
---------------
11,584,438
---------------
FOOD & KINDRED PRODUCTS (5.5%)
5,700 Adolph Coors Co. 283,575
75,700 Anheuser-Busch Cos., Inc. 4,589,312
94,100 Archer Daniels Midland Co. 1,729,088
45,200 Bestfoods, Inc. 2,627,250
10,700 Brown-Forman Corp. 778,425
70,500 Campbell Soup Co. 4,027,312
387,300 Coca-Cola Co. 27,135,206
64,400 Coca-Cola Enterprises, Inc. 2,435,125
76,600 Conagra, Inc. 2,408,113
24,400 General Mills, Inc. 1,842,200
56,900 Heinz (H.J.) Co. 3,317,981
22,500 Hershey Foods Corp. 1,513,125
64,000 Kellogg Co. 2,344,000
231,400 PepsiCo, Inc. 8,952,287
21,400 Quaker Oats Co. 1,313,425
51,000 RJR Nabisco Holdings Corp. 1,469,438
49,000 Ralston-Ralston Purina Group 1,705,813
73,400 Sara Lee Corp. 4,284,725
54,400 Seagram Co. Ltd. 1,866,600
100,600 Unilever N.V.(c) 7,777,638
18,200 Wrigley (Wm) Jr. Co.(c) 1,603,875
---------------
84,004,513
---------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
91
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
FOOD STORES (0.7%)
38,700 Albertson's, Inc.(c) $ 2,208,318
43,100 American Stores Co. 1,446,544
6,000 Great Atlantic & Pacific Tea Co. 163,875
40,300 Kroger Co.(a)(c) 2,138,419
76,300 Safeway, Inc.(a) 4,029,594
23,400 Winn-Dixie Stores, Inc.(c) 943,312
---------------
10,930,062
---------------
FURNITURE & FIXTURES (0.1%)
53,400 Masco Corp. 1,541,925
---------------
GENERAL MERCHANDISE STORES (2.9%)
17,200 Consolidated Stores Corp.(a) 369,800
69,000 Dayton Hudson Corp. 3,105,000
17,500 Dillards, Inc. 601,562
29,100 Dollar General Corp. 692,944
33,100 Federated Department Stores, Inc.(a)(c) 1,379,856
24,200 Fred Meyer, Inc.(a) 1,231,175
11,100 Harcourt General, Inc.(c) 574,425
39,700 J.C. Penney Co., Inc. 2,183,500
77,300 KMart Corp.(a)(c) 1,178,825
24,800 Kohl's Corp.(a) 1,219,850
36,300 May Department Stores Co. 2,189,344
61,600 Sears, Roebuck & Co. 2,922,150
21,300 Venator Group, Inc.(a) 167,738
351,200 Wal-Mart Stores, Inc.(c) 26,449,750
---------------
44,265,919
---------------
HEALTH SERVICES (0.4%)
101,400 Columbia/HCA Healthcare Corp. 2,496,975
27,300 HCR Manor Care, Inc.(a) 866,775
66,400 HEALTHSOUTH Corp.(a)(c) 892,250
48,400 Tenet Healthcare Corp.(a) 1,430,825
---------------
5,686,825
---------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION-- CONTRACTORS (0.2%)
12,400 Fluor Corp. 530,875
6,400 Foster Wheeler Corp. 109,600
68,900 Halliburton Co. 2,023,937
---------------
2,664,412
---------------
HOLDING & OTHER INVESTMENT OFFICES (0.1%)
49,100 Conseco, Inc. 1,626,438
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.0%)
15,700 Circuit City Stores(c) 568,144
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (0.2%)
80,200 Hilton Hotels Corp.(c) 1,744,350
39,300 Marriott International, Inc. 1,154,437
28,200 Mirage Resorts, Inc.(a) 419,475
---------------
3,318,262
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (7.2%)
21,200 Apple Computer, Inc.(a)(c) 677,075
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
<TABLE>
<C> <S> <C>
57,600 Applied Materials, Inc.(a) $ 2,232,000
49,900 Baker Hughes, Inc. 913,794
14,600 Black & Decker Corp. 791,137
3,700 Briggs & Stratton Corp. 186,619
15,600 Brunswick Corp. 343,200
11,700 Case Corp. 283,725
57,300 Caterpillar, Inc.(c) 2,832,769
244,200 Cisco Systems, Inc.(a) 18,406,575
262,500 Compaq Computer Corp. 8,531,250
6,000 Cummins Engine Co., Inc. 222,750
21,000 Danaher Corp. 958,125
7,800 Data General Corp.(a) 141,375
38,500 Deere & Co.(c) 1,345,094
198,900 Dell Computer Corp.(a) 12,095,606
35,000 Dover Corp. 1,246,875
78,500 EMC Corp.(c) 5,691,250
24,500 Gateway 2000, Inc.(a)(c) 1,375,062
7,500 Harnischfeger Industries, Inc. 75,000
163,300 Hewlett-Packard Co. 10,247,075
146,600 IBM Corp.(c) 24,189,000
25,900 Ingersoll-Rand Co. 1,212,444
9,300 McDermott International, Inc. 249,356
6,100 Milacron, Inc. 123,525
19,500 Pall Corp.(c) 453,375
43,100 Pitney Bowes, Inc. 2,413,600
38,200 Seagate Technology, Inc.(a) 1,126,900
29,700 Silicon Graphics, Inc.(a) 363,825
15,800 Tandy Corp. 711,988
26,600 Tenneco, Inc. 947,625
9,800 Timken Co. 188,650
101,255 Tyco International Ltd.(c) 6,663,845
39,900 Unisys Corp.(a) 1,137,150
---------------
108,377,639
---------------
INSURANCE AGENTS, BROKERS & SERVICES (0.3%)
26,500 Aon Corp.(c) 1,527,062
26,200 Humana, Inc.(a) 519,088
40,100 Marsh & McLennan Cos., Inc. 2,333,319
---------------
4,379,469
---------------
INSURANCE CARRIERS (4.7%)
22,700 Aetna, Inc. 1,754,994
130,100 Allstate Corp. 5,301,575
39,700 American General Corp. 2,796,369
165,000 American International Group, Inc. 15,510,000
33,300 CIGNA Corp. 2,591,156
26,000 Chubb Corp. 1,821,625
26,200 Cincinnati Financial Corp. 1,023,437
359,100 Citigroup, Inc.(c) 18,022,331
11,900 General Re Corp. 2,778,650
36,700 Hartford Financial Services Group 2,025,381
16,700 Jefferson-Pilot Corp. 1,139,775
15,800 Lincoln National Corp. 1,322,262
18,000 Loews Corp. 1,800,000
15,600 MBIA, Inc. 1,010,100
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
92
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
INSURANCE CARRIERS (continued)
<TABLE>
<C> <S> <C>
17,800 MGIC Investment Corp.(c) $ 782,088
11,400 Progressive Corp.(c) 1,691,475
21,200 Provident Cos., Inc.(c) 814,875
14,900 Providian Financial Corp. 1,368,006
22,200 Safeco Corp.(c) 953,213
37,100 St. Paul Cos., Inc.(c) 1,307,775
33,000 SunAmerica, Inc. 2,615,250
22,000 Torchmark Corp. 836,000
30,700 United Healthcare Corp. 1,385,338
21,700 UNUM Corp.(c) 1,169,088
---------------
71,820,763
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.0%)
17,300 Louisiana-Pacific Corp. 294,100
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (1.9%)
8,800 Bard (C.R.), Inc. 403,150
8,800 Bausch & Lomb, Inc. 488,400
38,800 Becton, Dickinson & Co. 1,649,000
17,600 Biomet, Inc.(c) 673,200
30,800 Boston Scientific Corp.(a)(c) 1,524,600
50,700 Eastman Kodak Co. 3,678,919
23,700 Guidant Corp.(c) 2,033,756
19,800 Honeywell, Inc.(c) 1,582,762
13,300 Johnson Controls, Inc. 769,737
13,600 KLA-Tencor Corp.(a) 463,250
73,800 Medtronic, Inc. 4,995,337
6,900 Millipore Corp. 194,063
7,700 Perkin-Elmer Corp. 718,025
6,900 Polaroid Corp.(c) 146,625
53,200 Raytheon Co. 2,945,950
13,200 St. Jude Medical, Inc.(a) 383,625
7,500 Tektronix, Inc. 201,094
26,100 Thermo Electron Corp.(a)(c) 440,438
51,700 Xerox Corp.(c) 5,557,750
---------------
28,849,681
---------------
METAL MINING (0.3%)
58,600 Barrick Gold Corp.(c) 1,172,000
36,100 Battle Mountain Gold Co. 169,219
14,700 Cyprus Amax Minerals Co. 167,212
28,300 Freeport-McMoRan Copper & Gold, Inc.
Class B 369,669
33,100 Homestake Mining Co.(c) 355,825
51,200 Newmont Mining Corp. 1,017,600
39,200 Placer Dome, Inc. 570,850
---------------
3,822,375
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.2%)
20,700 Hasbro, Inc.(c) 725,794
18,600 ITT Industries, Inc. 669,600
5,800 Jostens, Inc. 135,937
45,900 Mattel, Inc. 1,586,419
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
MISCELLANEOUS MANUFACTURING INDUSTRIES (continued)
<TABLE>
<C> <S> <C>
1,300 NACCO Industries, Inc. $ 113,181
---------------
3,230,931
---------------
MISCELLANEOUS RETAIL (0.9%)
61,100 CVS Corp. 3,016,812
34,000 Costco Cos., Inc.(a)(c) 2,133,500
6,100 Longs Drug Stores, Inc. 217,312
40,600 Rite Aid Corp.(c) 1,882,825
45,800 Staples, Inc.(a) 1,600,138
41,600 Toys R Us, Inc.(a)(c) 821,600
78,200 Walgreen Co.(c) 4,198,363
---------------
13,870,550
---------------
MOTION PICTURES (0.1%)
34,100 Unicom Corp.(c) 1,285,144
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (2.6%)
71,700 American Express Co. 7,174,481
54,400 Associates First Capital Corp. 4,236,400
10,400 Capital One Financial Corp. 1,144,000
17,500 Countrywide Credit Industries, Inc. 866,250
106,600 FHLMC(c) 6,449,300
162,900 FNMA 11,850,975
77,400 Household International, Inc. 3,028,275
118,000 MBNA Corp. 2,677,125
26,300 SLM Holding Corp.(c) 1,157,200
9,900 Transamerica Corp. 1,051,875
---------------
39,635,881
---------------
OIL & GAS EXTRACTION (0.5%)
18,800 Anadarko Petroleum Corp. 529,925
15,500 Apache Corp. 356,500
27,900 Burlington Resources, Inc. 993,938
7,900 Helmerich & Payne, Inc. 136,275
55,400 Occidental Petroleum Corp. 1,121,850
16,700 Oryx Energy Co.(a) 230,669
13,400 Rowan Cos., Inc.(a) 131,487
85,500 Schlumberger Ltd. 3,820,781
39,400 Union Pacific Resources Group, Inc. 440,788
---------------
7,762,213
---------------
PAPER & ALLIED PRODUCTS (1.4%)
18,300 Avery Dennison Corp. 877,256
8,400 Bemis Co., Inc. 317,625
8,900 Boise Cascade Corp. 282,019
15,000 Champion International Corp. 623,437
34,600 Fort James Corp.(c) 1,353,725
14,700 Georgia-Pacific Group 834,225
21,300 IKON Office Solutions, Inc. 207,675
48,300 International Paper Co.(c) 2,098,031
86,000 Kimberly-Clark Corp. 4,525,750
16,300 Mead Corp. 494,094
63,400 Minnesota Mining & Manufacturing Co. 5,091,812
8,800 Temple-Inland, Inc. 472,450
10,800 Union Camp Corp. 698,625
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
93
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
PAPER & ALLIED PRODUCTS (continued)
<TABLE>
<C> <S> <C>
15,900 Westvaco Corp. $ 447,188
31,300 Weyerhaeuser Co. 1,568,913
17,600 Willamette Industries, Inc. 614,900
---------------
20,507,725
---------------
PERSONAL SERVICES (0.1%)
16,000 H & R Block, Inc. 719,000
40,400 Service Corp. International 1,509,950
---------------
2,228,950
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (5.8%)
14,300 Amerada Hess Corp. 793,650
149,900 Amoco Corp. 8,834,731
12,000 Ashland, Inc. 583,500
50,500 Atlantic Richfield Co. 3,358,250
102,800 Chevron Corp. 8,596,650
383,000 Exxon Corp. 28,748,937
7,500 Kerr-McGee Corp. 296,250
122,800 Mobil Corp. 10,583,825
7,500 Pennzoil Co. 278,437
40,600 Phillips Petroleum Co. 1,705,200
336,800 Royal Dutch Petroleum Co. 15,829,600
14,700 Sunoco Inc. 497,963
84,200 Texaco, Inc. 4,846,763
48,400 USX-Marathon Group, Inc. 1,373,350
38,000 Unocal Corp. 1,287,250
---------------
87,614,356
---------------
PHARMACEUTICAL PREPARATIONS (0.9%)
206,700 American Home Products Corp. 11,006,775
39,900 Amgen, Inc.(a) 3,002,475
---------------
14,009,250
---------------
PRIMARY METAL INDUSTRIES (0.5%)
35,800 Alcan Aluminum Ltd.(c) 953,175
31,000 Allegheny Teledyne, Inc.(c) 637,438
29,400 Aluminum Co. of America(c) 2,179,275
6,200 Asarco, Inc. 120,125
20,400 Bethlehem Steel Corp.(a) 168,300
22,700 Engelhard Corp. 438,394
26,100 Inco Ltd. 301,781
13,800 Nucor Corp. 579,600
9,200 Phelps Dodge Corp.(c) 521,525
11,300 Reynolds Metals Co. 620,087
13,800 USX-US Steel Group, Inc. 337,237
15,200 Worthington Industries, Inc. 185,250
---------------
7,042,187
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.6%)
11,100 American Greetings Corp. 469,669
12,700 Deluxe Corp. 441,325
14,700 Dow Jones & Co., Inc. 702,844
44,700 Gannett Co., Inc. 2,885,944
12,400 Knight-Ridder, Inc. 637,825
15,600 McGraw-Hill Cos., Inc. 1,396,200
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
PRINTING, PUBLISHING & ALLIED INDUSTRIES (continued)
<TABLE>
<C> <S> <C>
8,300 Meredith Corp. $ 322,144
13,900 Moore Corp. Ltd. 152,031
29,800 New York Times Co. 925,662
21,900 R.R. Donnelley & Sons Co. 929,381
94,200 Time Warner, Inc. 9,961,650
13,600 Times Mirror Co. 797,300
19,100 Tribune Co. 1,224,787
56,200 Viacom, Inc., Class B(a)(c) 3,740,813
---------------
24,587,575
---------------
RAILROAD TRANSPORTATION (0.5%)
74,300 Burlington Northern Santa Fe Corp.(c) 2,526,200
34,300 CSX Corp. 1,429,881
59,600 Norfolk Southern Corp. 1,810,350
38,800 Union Pacific Corp.(c) 1,886,650
---------------
7,653,081
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (0.5%)
6,300 Armstrong World Industries 419,737
12,100 Cooper Tire & Rubber Co.(c) 236,706
24,600 Goodyear Tire & Rubber Co. 1,396,050
39,200 Illinois Tool Works, Inc.(c) 2,491,650
45,200 Nike, Inc., Class B(c) 1,808,000
8,900 Reebok International Ltd.(a) 141,844
23,600 Rubbermaid, Inc. 780,275
13,100 Sealed Air Corp.(a) 578,038
9,100 Tupperware Corp. 158,681
---------------
8,010,981
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (1.1%)
17,800 Bear Stearns Cos. 747,600
41,900 Charles Schwab Corp. 2,362,112
39,700 Franklin Resources, Inc. 1,697,175
18,500 Lehman Brothers Holding, Inc. 923,844
54,700 Merrill Lynch & Co., Inc. 4,102,500
92,000 Morgan Stanley Dean Witter & Co. 6,417,000
---------------
16,250,231
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (0.2%)
36,400 Corning, Inc. 1,460,550
25,500 Newell Co.(c) 1,128,375
8,500 Owens Corning 317,156
24,400 Owens-Illinois, Inc.(a) 783,850
---------------
3,689,931
---------------
TEXTILE MILL PRODUCTS (0.0%)
11,300 Fruit of the Loom, Inc.(a) 166,675
5,700 Russell Corp.(c) 135,731
2,900 Springs Industries, Inc., Class A 112,919
---------------
415,325
---------------
TOBACCO PRODUCTS (1.4%)
382,100 Philip Morris Cos., Inc. 21,373,719
---------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
94
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
TRANSPORTATION BY AIR (0.4%)
28,700 AMR Corp.(a) $ 1,892,406
23,800 Delta Airlines, Inc.(c) 1,277,763
23,200 FDX Corp.(a) 1,505,100
52,700 Southwest Airlines Co. 1,133,050
14,800 U.S. Air Group, Inc.(a) 769,600
---------------
6,577,919
---------------
TRANSPORTATION EQUIPMENT (2.9%)
88,100 Allied-Signal, Inc. 3,876,400
158,700 Boeing Co. 6,447,187
25,900 Dana Corp. 1,010,100
11,200 Eaton Corp. 765,100
5,400 Fleetwood Enterprises, Inc. 181,912
190,300 Ford Motor Co. 10,514,075
19,900 General Dynamics Corp. 1,155,444
102,700 General Motors Corp. 7,189,000
30,800 Lockheed Martin Corp. 3,195,500
10,600 Navistar International Corp.(a) 274,275
10,800 Northrop Grumman Corp. 877,500
12,200 Paccar, Inc. 555,100
30,100 Rockwell International Corp. 1,473,019
19,100 TRW, Inc. 1,051,694
25,700 Textron, Inc. 1,996,569
35,800 United Technologies Corp.(c) 3,837,312
---------------
44,400,187
---------------
WHOLESALE TRADE--DURABLE GOODS (0.1%)
28,100 Genuine Parts Co. 925,544
15,400 Grainger (W.W.), Inc.(c) 650,650
4,500 Potlatch Corp. 170,156
---------------
1,746,350
---------------
WHOLESALE TRADE--NONDURABLE GOODS (0.3%)
31,350 Cardinal Health, Inc.(c) 2,151,394
19,000 Supervalu, Inc. 490,437
53,000 Sysco Corp. 1,427,688
---------------
4,069,519
---------------
TOTAL COMMON STOCKS (COST $877,042,607) 1,476,090,012
---------------
CORPORATE NOTES (0.1%)
2,000,000 NationsBank Corp., 5.43% V/R, 7/1/04
(cost $1,988,583) 1,983,110
---------------
REPURCHASE AGREEMENT (2.4%)
36,086,650 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98 to be repurchased at
$36,092,163 (cost $36,086,650)(d) 36,086,650
---------------
U.S. TREASURY BILLS (0.2%)
785,000 U.S. Treasury Bills, 5.05% yield,
4/29/99 771,053
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
U.S. TREASURY BILLS (continued)
<TABLE>
<C> <S> <C>
1,450,000 U.S. Treasury Bills, 4.24% yield,
9/16/99 $ 1,401,541
---------------
TOTAL U.S. TREASURY BILLS (COST $2,170,804) 2,172,594
---------------
TOTAL INVESTMENTS (100.0%) (COST $917,288,644) $ 1,516,332,366
---------------
---------------
FINANCIAL FUTURES CONTRACTS(e)
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
POSITION CONTRACTS INDEX GAIN (LOSS)
- --------- ------------- ----------------------------------- -------------
<S> <C> <C> <C>
Long 134 S&P 500 Futures, Expiring December
18, 1998 (notional value
$38,943,750) $ 3,350,800
</TABLE>
<TABLE>
<C> <S> <C>
- -----------------------------------------------------------------
INCOME EQUITY PORTFOLIO
- -----------------------------------------------------------------
COMMON STOCKS (97.1%)
BUSINESS SERVICES (1.9%)
608,900 IMS Health, Inc. $ 40,415,737
---------------
CHEMICALS & ALLIED PRODUCTS (13.9%)
850,500 E.I. Du Pont de Nemours & Co. 49,966,875
520,750 Johnson & Johnson 42,310,937
287,400 Merck & Co., Inc. 44,511,075
1,604,800 Morton International, Inc.(c) 47,241,300
530,400 Pfizer, Inc. 59,205,900
554,800 Procter & Gamble Co.(c) 48,614,350
---------------
291,850,437
---------------
COMMUNICATIONS (5.6%)
1,113,200 AT&T Corp.(c) 69,366,275
782,600 GTE Corp. 48,521,200
---------------
117,887,475
---------------
DEPOSITORY INSTITUTIONS (4.3%)
470,650 J.P. Morgan & Co., Inc. 50,300,719
1,067,850 U.S. Bancorp 39,310,228
---------------
89,610,947
---------------
EATING & DRINKING PLACES (2.0%)
602,750 McDonald's Corp. 42,230,172
---------------
ELECTRIC, GAS & SANITARY SERVICES (6.9%)
543,000 Consolidated Natural Gas Co. 29,491,687
740,600 Pacific Gas & Electric Co.(c) 22,912,313
604,100 Public Service Enterprise Group, Inc. 23,559,900
876,350 Texas Utilities Co. 39,052,347
679,832 Waste Management, Inc.(c) 29,147,797
---------------
144,164,044
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (11.5%)
1,669,972 AMP, Inc. 80,784,895
677,000 Emerson Electric Co.(c) 44,005,000
550,978 General Electric Co. 49,863,509
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
95
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INCOME EQUITY PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
<TABLE>
<C> <S> <C>
783,146 Lucent Technologies, Inc.(c) $ 67,399,503
---------------
242,052,907
---------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT, & RELATED SERVICES (2.2%)
1,563,600 Dun & Bradstreet Corp.(c) 47,201,175
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT
(3.0%)
1,836,600 Fortune Brands, Inc. 62,559,189
---------------
FOOD & KINDRED PRODUCTS (5.5%)
1,662,640 PepsiCo, Inc. 64,323,385
877,250 Sara Lee Corp. 51,209,469
---------------
115,532,854
---------------
GENERAL MERCHANDISE STORES (7.8%)
965,800 Dayton Hudson Corp.(c) 43,461,000
738,400 J.C. Penney Co., Inc.(c) 40,612,000
729,500 May Department Stores Co. 43,997,969
773,830 Sears, Roebuck & Co. 36,708,560
---------------
164,779,529
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (3.2%)
1,056,200 Hewlett-Packard Co. 66,276,550
---------------
INSURANCE CARRIERS (2.3%)
686,750 American General Corp. 48,372,953
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (4.1%)
544,050 Eastman Kodak Co. 39,477,628
567,600 Honeywell, Inc. 45,372,525
---------------
84,850,153
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (4.3%)
412,300 American Express Co. 41,255,769
470,900 Transamerica Corp. 50,033,125
---------------
91,288,894
---------------
OIL & GAS EXTRACTION (1.0%)
440,100 Schlumberger Ltd. 19,666,969
---------------
PAPER & ALLIED PRODUCTS (1.9%)
497,150 Minnesota Mining & Manufacturing Co. 39,927,359
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (7.7%)
538,200 Atlantic Richfield Co. 35,790,300
458,750 Chevron Corp. 38,362,969
541,102 Exxon Corp. 40,616,469
305,900 Mobil Corp. 26,364,756
440,600 Royal Dutch Petroleum Co. 20,708,200
---------------
161,842,694
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INCOME EQUITY PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
PHARMACEUTICAL PREPARATIONS (2.4%)
937,800 American Home Products Corp. $ 49,937,850
---------------
PRINTING, PUBLISHING, & ALLIED INDUSTRIES (0.6%)
371,800 Deluxe Corp. 12,920,050
---------------
TOBACCO PRODUCTS (3.1%)
1,176,550 Philip Morris Cos., Inc. 65,813,266
---------------
TRANSPORTATION EQUIPMENT (1.9%)
369,300 United Technologies Corp.(c) 39,584,344
---------------
TOTAL COMMON STOCKS (COST $1,206,600,344) 2,038,765,548
---------------
REPURCHASE AGREEMENT (2.9%)
60,475,583 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98, to be repurchased at
$60,484,822 (cost $60,475,583)(d) 60,475,583
---------------
TOTAL INVESTMENTS (100.0%) (COST $1,267,075,927) $ 2,099,241,131
---------------
---------------
- -----------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- -----------------------------------------------------------------
COMMON STOCKS (98.0%)
APPAREL & ACCESSORY STORES (2.1%)
97,300 Ross Stores, Inc. $ 3,539,288
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(2.7%)
76,830 Tommy Hilfiger Corp.(a) 4,648,215
---------------
BUSINESS SERVICES (10.1%)
95,185 BMC Software, Inc.(a) 4,860,384
118,500 Oracle Corp.(a) 4,058,625
75,372 Robert Half International, Inc.(a)(c) 3,542,484
168,310 Unisys Corp.(a) 4,796,835
---------------
17,258,328
---------------
CHEMICALS & ALLIED PRODUCTS (7.5%)
62,140 Amgen, Inc.(a) 4,676,035
45,800 Schering-Plough Corp. 4,871,975
147,910 Solutia, Inc. 3,309,486
---------------
12,857,496
---------------
COMMUNICATIONS (5.6%)
67,710 AT&T Corp. 4,219,179
60,360 BellSouth Corp. 5,266,410
---------------
9,485,589
---------------
DOMESTIC DEPOSITORY INSTITUTIONS (7.1%)
98,210 AmSouth Bank, N.A. 4,149,373
64,420 Comerica, Inc. 4,155,090
141,020 Dime Bancorp, Inc. 3,745,844
---------------
12,050,307
---------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
96
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
EATING & DRINKING PLACES (2.3%)
252,145 Darden Restaurants, Inc.(c) $ 3,987,043
---------------
ELECTRIC, GAS & SANITARY SERVICES (2.5%)
97,205 DTE Energy Co.(c) 4,240,567
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (2.6%)
52,430 Lucent Technologies, Inc. 4,512,257
---------------
FOOD & KINDRED PRODUCTS (5.0%)
155,810 IBP, Inc. 3,953,679
73,190 Quaker Oats Co. 4,492,036
---------------
8,445,715
---------------
FURNITURE & FIXTURES (1.8%)
146,325 Herman Miller, Inc. 3,109,406
---------------
GENERAL MERCHANDISE STORES (6.0%)
105,050 Dayton Hudson Corp. 4,727,250
209,450 TJX Cos., Inc. 5,367,156
---------------
10,094,406
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (10.0%)
80,400 Apple Computer, Inc.(a)(c) 2,567,775
63,110 EMC Corp.(a) 4,575,475
89,280 Ingersoll-Rand Co. 4,179,420
75,270 Lexmark International Group, Inc.(a) 5,748,746
---------------
17,071,416
---------------
INSURANCE CARRIERS (6.7%)
70,600 Allstate Corp. 2,876,950
68,300 Jefferson-Pilot Corp. 4,661,475
52,020 PacifiCare Health Systems, Inc.(a)(c) 3,917,756
---------------
11,456,181
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (2.1%)
249,265 Johns Manville Corp. 3,598,763
---------------
OIL & GAS EXTRACTION (1.7%)
118,000 Transocean Offshore, Inc. 2,913,125
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (2.5%)
57,350 Exxon Corp. 4,304,835
---------------
PHARMACEUTICAL PREPARATIONS (5.6%)
136,890 Mylan Laboratories, Inc.(c) 4,543,037
89,810 Watson Pharmaceuticals, Inc. (a) 4,838,514
---------------
9,381,551
---------------
PRINTING & PUBLICATIONS (2.4%)
80,100 Knight Ridder, Inc. 4,120,144
---------------
TRANSPORTATION BY AIR (2.5%)
64,140 AMR Corp.(a) 4,229,231
---------------
TRANSPORTATION EQUIPMENT (7.4%)
87,280 General Dynamics Corp. 5,067,695
78,695 Paccar, Inc. 3,580,623
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
TRANSPORTATION EQUIPMENT (continued)
<TABLE>
<C> <S> <C>
72,820 Sundstrand Corp. $ 3,932,280
---------------
12,580,598
---------------
WATER TRANSPORTATION(1.8%)
101,340 Royal Caribbean Cruises Ltd.(c) 3,078,203
---------------
TOTAL COMMON STOCKS (COST $149,199,229) 166,962,664
---------------
REPURCHASE AGREEMENT (2.0%)
3,427,716 NationsBanc Montgomery Securities, Inc.,
5.50% 12/1/98 to be repurchased at
$3,428,233 (cost $3,427,716)(d) 3,427,716
---------------
TOTAL INVESTMENTS (100.0%) (COST $152,626,945) $ 170,390,380
---------------
---------------
- -----------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- -----------------------------------------------------------------
COMMON STOCKS (100.0%)
AMUSEMENT & RECREATION SERVICES (1.3%)
492,590 Walt Disney Co. $ 15,855,241
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(2.2%)
477,800 Cintas Corp. 26,279,000
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS (5.2%)
122,600 Fastenal Co.(c) 5,057,250
1,157,978 Home Depot, Inc.(c) 57,609,405
---------------
62,666,655
---------------
BUSINESS SERVICES (20.3%)
273,900 Automatic Data Processing, Inc.(c) 21,090,300
206,700 DST Systems, Inc.(a)(c) 11,187,637
323,000 First Data Corp. 8,620,063
392,975 Fiserv, Inc.(a)(c) 17,364,583
1,017,800 HBO & Co. 25,381,388
622,400 IMS Health, Inc. 41,311,800
905,880 Microsoft Corp.(a) 110,517,360
342,200 Sungard Data Systems, Inc.(a)(c) 10,950,400
---------------
246,423,531
---------------
CHEMICALS & ALLIED PRODUCTS (11.4%)
275,500 Merck & Co., Inc. 42,668,062
634,300 Pfizer, Inc. 70,803,738
325,800 Warner-Lambert Co. 24,597,900
---------------
138,069,700
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (16.4%)
780,000 Intel Corp. 83,947,500
220,200 Lucent Technologies, Inc. 18,950,962
442,948 Molex, Inc., Class A 14,285,073
397,700 Solectron Corp.(a) 26,322,769
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
97
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
<TABLE>
<C> <S> <C>
1,990,900 Telefonaktiebolaget LM Ericsson, Series
B ADR(c) $ 54,998,613
---------------
198,504,917
---------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT, & RELATED SERVICES (2.8%)
319,200 Gartner Group, Inc.(a) 6,902,700
533,366 Paychex, Inc.(c) 26,534,959
---------------
33,437,659
---------------
FOOD & KINDRED PRODUCTS (2.6%)
442,800 Coca-Cola Co.(c) 31,023,675
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (6.8%)
1,094,775 Cisco Systems, Inc.(a) 82,518,666
---------------
INSURANCE CARRIERS (4.7%)
611,343 American International Group, Inc.(c) 57,466,242
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (5.1%)
908,700 Medtronic, Inc. 61,507,630
---------------
MISCELLANEOUS RETAIL (4.4%)
184,000 MSC Industrial Direct Co., Inc.(a)(c) 4,381,500
561,800 Office Depot, Inc.(a)(c) 18,258,500
870,250 Staples, Inc.(a)(c) 30,404,359
---------------
53,044,359
---------------
OIL & GAS EXTRACTION (0.6%)
169,300 Schlumberger Ltd. 7,565,594
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (14.3%)
1,535,250 Charles Schwab Corp.(c) 86,549,719
375,100 Donaldson, Lufkin & Jenrette, Inc.(c) 15,074,331
972,400 Franklin Resources, Inc.(c) 41,570,100
852,100 T. Rowe Price(c) 30,462,575
---------------
173,656,725
---------------
WHOLESALE TRADE--NONDURABLE GOODS (1.9%)
337,900 Cardinal Health, Inc.(c) 23,188,387
---------------
TOTAL INVESTMENTS (100.0%) (COST $544,006,186) $ 1,211,207,981
---------------
---------------
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- -----------------------------------------------------------------
COMMON STOCKS (95.7%)
ADMINISTRATION OF ENVIRONMENTAL QUALITY & HOUSING PROGRAMS (0.1%)
6,500 Dames & Moore, Inc. $ 83,281
---------------
AGRICULTURAL PRODUCTION--CROPS (0.6%)
23,200 Chiquita Brands International, Inc.(c) 261,000
13,600 Delta & Pine Land Co. 515,100
---------------
776,100
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
AMUSEMENT & RECREATION SERVICES (0.6%)
9,200 Family Golf Centers, Inc.(a)(c) $ 189,100
15,000 Grand Casinos, Inc.(a)(c) 142,500
9,300 Hollywood Park, Inc.(a) 88,931
11,300 Players International, Inc.(a) 67,094
11,200 Westwood One, Inc.(a) 296,800
---------------
784,425
---------------
APPAREL & ACCESSORY STORES (1.1%)
9,100 AnnTaylor Stores Corp.(a)(c) 299,731
5,200 Ashworth, Inc.(a) 30,063
9,800 Cato Corp. 132,913
8,200 Dress Barn, Inc.(a) 120,950
7,500 Filene's Basement Corp.(a) 15,000
8,700 Footstar, Inc.(a) 212,063
11,800 Goody's Family Clothing, Inc.(a) 132,750
8,600 Gymboree Corp.(a) 57,513
4,900 J. Baker, Inc. 24,194
10,700 Just For Feet, Inc.(a) 242,088
5,900 St. John Knits, Inc. 118,000
---------------
1,385,265
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(0.9%)
8,000 Authentic Fitness Corp. 128,000
5,300 Cyrk, Inc.(a) 47,038
3,000 Haggar Corp. 38,250
12,200 Hartmarx Corp.(a) 71,675
7,600 Kellwood Co. 205,200
13,200 Nautica Enterprises, Inc.(a) 259,875
6,400 Oshkosh B'Gosh, Inc. 153,600
9,700 Phillips-Van Heusen Corp. 67,900
5,000 Pillowtex Corp. 168,750
---------------
1,140,288
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (0.4%)
5,900 Discount Auto Parts, Inc.(a) 147,131
7,500 O'Reilly Automotive, Inc.(a) 340,313
---------------
487,444
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING (0.5%)
13,000 Breed Technologies, Inc.(a)(c) 87,750
10,500 Central Parking Corp.(c) 308,438
21,100 Rollins Truck Leasing Corp. 253,200
---------------
649,388
---------------
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (1.0%)
19,700 D.R. Horton, Inc. 371,838
6,500 MDC Holdings, Inc. 119,438
5,200 Ryland Group, Inc. 138,125
4,800 Southern Energy Homes, Inc.(a) 33,600
10,600 Standard Pacific Corp. 103,350
13,100 Toll Brothers, Inc.(a) 318,494
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
98
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (continued)
<TABLE>
<C> <S> <C>
4,900 U.S. Home Corp.(a) $ 156,188
---------------
1,241,033
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS (0.2%)
10,300 Eagle Hardware & Garden, Inc.(a)(c) 290,331
---------------
BUSINESS SERVICES (8.1%)
7,500 ABM Industries, Inc. 249,844
8,000 ADVO, Inc.(a) 207,000
18,700 Acxiom Corp.(a)(c) 441,788
15,100 American Management Systems, Inc.(a)(c) 445,450
8,000 Analysts International Corp. 135,000
9,500 BISYS Group, Inc.(a) 457,188
10,000 Boole & Babbage, Inc.(a) 316,250
6,600 Catalina Marketing Corp.(a) 384,450
11,600 Cerner Corp.(a)(c) 304,500
19,000 Ciber, Inc.(a)(c) 428,688
14,500 Cognex Corp.(a) 240,156
7,400 Computer Task Group, Inc. 199,800
7,500 Envoy Corp.(a)(c) 299,063
4,900 Fair, Isaac & Co., Inc. 197,225
11,200 FileNet Corp.(a) 95,900
8,100 Gerber Scientific, Inc. 205,031
15,000 Harbinger Corp.(a) 129,375
6,700 Jack Henry & Associates, Inc. 336,675
9,100 HNC Software, Inc.(a)(c) 300,300
10,500 Hyperion Software Corp.(a) 339,938
4,000 Insurance Auto Auctions, Inc.(a) 46,000
16,700 Interim Services, Inc.(a) 346,525
2,900 Kronos, Inc.(a) 125,425
14,100 Macromedia, Inc.(a) 393,919
6,100 Mercury Interactive Corp.(a) 279,838
13,700 Midway Games, Inc.(a) 139,569
11,100 National Computer Systems, Inc. 364,913
12,000 National Data Corp. 448,500
7,700 Network Equipment Technologies, Inc.(a) 85,663
9,700 Norrell Corp. 154,594
9,200 Platinum Software Corp.(a) 97,750
8,000 Primark Corp. 200,000
6,200 Progress Software Corp.(a) 157,325
18,200 S3, Inc.(a) 97,825
16,900 System Software Associates, Inc.(a) 116,188
7,900 TCSI Corp.(a) 18,022
14,100 Technology Solutions, Inc.(a) 131,306
15,900 True North Communications, Inc. 447,188
15,400 Vanstar Corp.(a) 183,838
9,300 Vantive Corp.(a) 79,050
5,300 Volt Information Sciences, Inc.(a) 123,556
3,500 Wall Data, Inc.(a) 60,375
---------------
9,810,990
---------------
CHEMICALS & ALLIED PRODUCTS (4.9%)
14,000 Advanced Tissue Sciences, Inc.(a)(c) 41,125
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
CHEMICALS & ALLIED PRODUCTS (continued)
<TABLE>
<C> <S> <C>
11,400 Alliance Pharmaceutical Corp.(a) $ 44,175
9,000 Alpharma, Inc. 324,000
7,900 Barr Laboratories, Inc.(a) 333,775
4,000 Biomatrix, Inc.(a)(c) 194,250
8,600 Cambrex Corp. 240,800
6,700 ChemFirst, Inc. 126,463
8,300 Geon Co. 184,675
3,800 Hauser, Inc.(a) 17,575
8,200 Immune Response Corp.(a)(c) 106,600
10,200 Jones Pharma, Inc.(c) 367,200
8,200 Lilly Industries, Inc., Class A 153,238
13,500 Liposome Co., Inc.(a) 122,344
9,300 Macdermid, Inc.(c) 342,938
3,700 McWhorter Technologies, Inc.(a) 87,413
9,400 MedImmune, Inc.(a)(c) 628,625
9,700 Mississippi Chemical Corp. 152,775
24,000 NBTY, Inc.(a) 147,000
6,500 Natures Sunshine Product, Inc. 101,563
11,400 North American Vaccine, Inc.(a)(c) 109,725
7,600 Noven Pharmaceuticals, Inc.(a) 40,375
8,500 OM Group, Inc. 307,594
8,700 Parexel International Corp.(a) 226,744
2,600 Penford Corp. 39,163
6,600 Protein Design Labs, Inc.(a) 145,200
3,100 Quaker Chemical Corp. 53,281
11,100 Roberts Pharmaceutical Corp.(a) 271,950
11,200 SEQUUS Pharmaceuticals, Inc.(a) 221,200
6,600 Scotts Co.(a) 238,838
7,500 TheraTech, Inc.(a)(c) 104,063
4,900 USA Detergents, Inc.(a)(c) 45,325
9,000 Vertex Pharmaceuticals, Inc.(a)(c) 213,188
8,000 W.H. Brady Co. 206,000
---------------
5,939,180
---------------
COMMUNICATIONS (0.7%)
18,500 Brightpoint, Inc.(a) 277,500
17,600 General Communication, Inc.(a) 71,500
5,900 Metro Networks, Inc.(a) 224,200
22,900 Tel-Save Holdings, Inc.(a)(c) 273,369
---------------
846,569
---------------
CONSTRUCTION--SPECIAL TRADE CONTRACTORS (0.3%)
9,800 Apogee Enterprises, Inc. 121,275
9,600 Insituform Technologies, Class A(a) 126,000
5,900 Service Experts, Inc.(a) 174,788
---------------
422,063
---------------
DEPOSITORY INSTITUTIONS (7.8%)
6,300 Anchor Bancorp Wisconsin 126,788
19,300 Astoria Financial Corp.(c) 868,500
5,400 Banknorth Group, Inc. 180,225
6,300 Carolina First Corp. 157,106
9,400 Centura Banks, Inc. 639,200
8,000 Commerce Bancorp, Inc. 382,000
20,800 Commercial Federal Corp. 477,100
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
99
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
DEPOSITORY INSTITUTIONS (continued)
<TABLE>
<C> <S> <C>
7,900 Cullen/Frost Bankers, Inc. $ 423,638
10,000 Downey Financial Corp. 260,000
10,600 First Midwest Bancorp, Inc. 412,738
10,600 FirstBank Puerto Rico 290,175
25,600 FirstMerit Corp. 672,000
15,400 Hubco, Inc. 415,800
3,500 JSB Financial, Inc. 184,625
18,200 Keystone Financial, Inc. 589,225
8,000 MAF Bancorp, Inc. 205,000
6,200 Premier Bancshares, Inc.(c) 144,925
7,800 Queens County Bancorp, Inc. 234,000
10,900 Riggs National Corp. 228,900
7,300 Silicon Valley Bancshares(a) 182,500
14,400 St. Paul Bancorp, Inc. 304,200
12,000 Susquehanna Bancshares 267,000
9,545 TrustCo Bank Corp. 267,260
6,700 U.S. Trust Corp. 453,088
15,100 UST Corp. 373,725
15,200 United Bankshares, Inc. 434,150
8,000 Whitney Holding Corp. 296,000
---------------
9,469,868
---------------
EATING & DRINKING PLACES (2.0%)
10,800 Applebee's International, Inc. 222,075
6,500 CEC Entertainment, Inc.(a) 192,563
16,600 CKE Restaurants, Inc.(c) 405,663
7,100 Cheesecake Factory, Inc.(a) 184,600
7,400 Consolidated Products, Inc.(a) 153,088
13,900 Foodmaker, Inc.(a) 269,313
3,500 IHOP Corp.(a) 139,125
10,800 Landry's Seafood Restaurants, Inc.(a) 87,750
8,300 Luby's Cafeterias, Inc. 131,763
11,700 Ruby Tuesday, Inc. 217,913
14,800 Ryan's Family Steak Houses, Inc.(a) 168,350
17,300 Shoney's, Inc. 29,194
6,800 Sonic Corp.(a) 133,450
8,200 TCBY Enterprises, Inc. 63,550
5,100 Taco Cabana, Inc., Class A(a) 35,381
---------------
2,433,778
---------------
EDUCATIONAL SERVICES (0.5%)
24,600 DeVry, Inc.(a) 648,825
---------------
ELECTRIC, GAS & SANITARY SERVICES (4.7%)
3,200 American States Water Co. 90,400
2,600 Aquarion Co. 97,663
10,700 Atmos Energy Corp. 327,688
2,600 Bangor Hydro-Electric Co.(a) 31,525
3,900 Cascade Natural Gas Corp. 71,419
6,000 Central Hudson Gas & Electric Corp. 242,625
4,100 Central Vermont Public Service Corp. 42,794
4,800 CILCORP, Inc. 290,400
7,600 Commonwealth Energy System 292,600
3,600 Connecticut Energy Corp. 100,575
3,200 Consumers Water Co. 100,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
ELECTRIC, GAS & SANITARY SERVICES (continued)
<TABLE>
<C> <S> <C>
7,300 Eastern Utilities Associates $ 180,219
10,400 Energen Corp. 187,200
1,900 Green Mountain Power Corp. 23,038
10,500 KCS Energy, Inc. 42,000
6,300 New Jersey Resources Corp. 245,306
8,800 Northwest Natural Gas Co. 249,700
4,800 Orange & Rockland Utilities, Inc. 270,000
3,600 Pennsylvania Enterprises, Inc. 88,875
9,800 Philadelphia Suburban Corp. 248,063
10,800 Piedmont Natural Gas Co. 378,000
7,200 Public Service Co. of North Carolina,
Inc. 175,050
11,000 Sierra Pacific Resources 396,000
10,700 Southwest Gas Co. 254,125
8,800 Southwestern Energy Co. 66,000
9,600 Superior Services, Inc.(a) 176,400
4,700 TNP Enterprises, Inc. 178,600
5,100 United Illuminating Co. 255,956
13,200 United Water Resources, Inc. 273,900
13,300 Wicor, Inc. 290,938
---------------
5,667,059
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (9.2%)
9,700 Allen Group, Inc.(a) 67,294
17,900 Aspect Telecommunications Corp.(a) 338,981
9,600 BMC Industries, Inc. 59,400
13,200 Baldor Electric Co. 263,175
4,100 Benchmark Electronics, Inc.(a) 102,500
4,800 BroadBand Technologies, Inc.(a) 21,900
13,000 Burr-Brown Corp.(a) 307,125
3,400 C-Cor Electronics, Inc.(a) 49,300
13,300 C-Cube Microsystems, Inc.(a)(c) 348,294
4,800 CTS Corp. 169,200
10,700 Cable Design Technologies Corp.(a) 197,281
5,800 California Microwave, Inc.(a) 70,325
2,500 Centigram Communications Corp.(a) 19,063
11,500 Checkpoint Systems, Inc.(a) 154,531
5,300 Customtracks Corp.(a) 46,375
9,900 Dallas Semiconductor Corp. 373,725
21,800 Digital Microwave Corp.(a) 128,075
8,000 Dionex Corp.(a) 248,000
4,000 Electro Scientific Industries, Inc.(a) 119,750
7,800 Etec Systems, Inc.(a) 256,425
3,251 General Electric Co. 294,234
13,100 General Semiconductor, Inc.(a) 132,638
4,700 HADCO Corp.(a) 164,500
6,600 Harman International Industries, Inc. 281,738
3,700 Harmon Industries, Inc. 92,500
7,900 Helix Technology Corp. 96,775
7,000 Hutchinson Technology, Inc.(a)(c) 216,563
5,200 Innovex, Inc.(c) 83,200
9,600 Inter-Tel, Inc. 230,400
4,900 Intervoice, Inc.(a) 125,563
18,200 International Rectifier Corp.(a) 170,625
5,200 Itron, Inc.(a)(c) 34,775
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
100
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
<TABLE>
<C> <S> <C>
6,600 Juno Lighting, Inc. $ 154,275
13,900 Kemet Corp.(a) 196,338
6,000 Kuhlman Corp. 167,250
8,300 Lattice Semiconductor Corp.(a) 306,063
12,600 Methode Electronics, Inc. 171,675
2,600 National Presto Industries, Inc. 107,413
12,100 Novellus Systems, Inc.(a)(c) 600,463
6,400 Oak Industries, Inc.(a) 197,600
15,400 P-COM, Inc.(a) 57,270
3,700 Park Electrochemical Corp. 70,994
8,700 Photronics, Inc.(a) 174,000
13,600 Picturetel Corp.(a) 96,900
5,200 Plexus Corp.(a) 156,000
17,300 Read-Rite Corp.(a) 232,469
3,300 Rival Co. 36,300
7,600 Royal Appliance Manufacturing Co.(a) 35,150
14,900 Sanmina Corp.(a)(c) 742,206
5,700 Speedfam International, Inc.(a)(c) 86,569
5,700 Standard Microsystems Corp.(a) 42,750
5,600 SymmetriCom, Inc.(a) 34,650
5,700 Technitrol, Inc. 172,069
5,600 Thomas Industries, Inc. 96,600
2,800 Three-Five Systems, Inc.(a) 28,000
11,200 Unitrolde Corp.(a) 189,700
16,500 VLSI Technology, Inc.(a) 188,719
9,100 Valence Technology, Inc.(a)(c) 86,450
15,000 Vicor Corp.(a) 133,125
26,000 Vitesse Semiconductor Corp.(a) 926,250
2,900 Watkins-Johnson Co. 52,925
15,400 Xylan Corp.(a)(c) 279,125
---------------
11,083,528
---------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (2.3%)
11,600 American Oncology Resources, Inc.(a) 129,775
12,000 Billing Information Concepts Corp.(a) 153,000
17,100 Bio-Technology General Corp.(a) 115,425
13,300 Blount International, Inc., Class A 307,563
7,100 CDI Corp.(a) 190,369
8,600 COR Therapeutics, Inc.(a) 101,050
10,200 Cephalon, Inc.(a) 75,863
8,100 Franklin Covey Co.(a) 151,875
9,500 Incyte Pharmaceuticals, Inc.(a) 296,875
7,500 NFO Worldwide, Inc.(a) 94,688
4,400 Pharmaceuticals Marketing Services,
Inc.(a) 45,650
8,300 Pharmaceutical Product Development,
Inc.(a)(c) 237,588
8,000 Pre-Paid Legal Services(a) 208,000
11,000 Regeneron Pharmaceuticals, Inc.(a) 90,750
4,500 Stone & Webster, Inc. 153,000
8,600 U. S. Bioscience, Inc.(a) 65,038
18,200 Whittman-Hart, Inc.(a) 401,538
---------------
2,818,047
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT
(0.9%)
4,500 Alliant Techsystems, Inc.(a) $ 342,844
12,800 AptarGroup, Inc. 357,600
2,700 Butler Manufacturing Co. 62,775
11,000 Griffon Corp.(a) 105,875
3,000 Insteel Industries, Inc. 16,875
5,500 Material Sciences Corp.(a) 49,500
9,600 Strum, Ruger & Co., Inc. 121,800
---------------
1,057,269
---------------
FOOD & KINDRED PRODUCTS (1.6%)
6,700 Canandaigua Brands, Inc.(a) 333,325
3,000 Coca-Cola Bottling Co. 174,188
12,600 Corn Products International, Inc. 353,588
15,200 Earthgrains Co. 488,300
3,200 J & J Snack Foods Corp.(a) 66,800
11,500 Ralcorp Holdings, Inc.(a) 201,250
13,300 Smithfield Foods, Inc.(a) 351,619
---------------
1,969,070
---------------
FOOD STORES (0.4%)
4,200 Au Bon Pain Co., Inc.(a) 26,250
9,400 Whole Foods Market, Inc.(a)(c) 437,100
---------------
463,350
---------------
FURNITURE & FIXTURES (0.7%)
4,600 Bassett Furniture Industries, Inc. 116,150
10,200 Ethan Allen Interiors, Inc. 402,900
18,900 LA-Z-BOY, Inc, 316,575
---------------
835,625
---------------
GENERAL MERCHANDISE STORES (0.7%)
18,700 Casey's General Stores, Inc. 259,463
2,700 GC Cos., Inc.(a) 108,675
4,500 Gottschalks, Inc.(a) 33,750
9,300 Shopko Stores, Inc.(a) 299,925
16,200 Stein Mart, Inc.(a) 139,220
---------------
841,033
---------------
HEALTH SERVICES (3.9%)
8,400 Access Health, Inc.(a) 301,350
3,500 Chemed Corp. 118,563
20,800 Coventry Health Care, Inc.(a) 154,700
4,500 Curative Health Services, Inc.(a) 129,375
8,700 Enzo Biochem, Inc.(a) 114,731
12,000 Express Scripts, Inc.(a) 660,000
12,500 Genesis Health Ventures, Inc.(a) 119,531
13,700 Idexx Laboratories, Inc.(a) 356,200
19,200 Integrated Health Services, Inc.(a)(c) 214,800
11,200 Magellan Health Services, Inc.(a) 105,000
25,200 Mariner Health Group, Inc.(a) 108,675
8,200 MedQuist, Inc.(a)(c) 249,075
16,900 Orthodontic Centers of America, Inc.(a) 323,213
5,400 Pediatrix Medical Group, Inc.(a) 289,913
27,800 Phycor, Inc.(a) 170,275
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
101
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
HEALTH SERVICES (continued)
<TABLE>
<C> <S> <C>
14,100 Renal Care Group, Inc.(a) $ 378,938
9,800 Sierra Health Services, Inc.(a) 224,175
3,900 Syncor International Corp.(a) 93,600
11,600 Universal Health Services, Inc.(a) 622,050
---------------
4,734,164
---------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION-- CONTRACTORS (0.2%)
19,200 Morrison Knudsen Corp.(a) 184,800
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (1.3%)
13,500 Bombay Co., Inc.(a) 66,656
6,100 Lechters, Inc.(a) 18,491
13,800 Linens 'N Things, Inc.(a) 422,625
7,000 MicroAge, Inc.(a) 122,500
35,000 Pier 1 Imports, Inc. 376,250
19,700 Williams-Sonoma, Inc.(a) 582,381
---------------
1,588,903
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (0.4%)
16,100 Aztar Corp.(a) 81,506
10,700 Marcus Corp. 161,838
10,300 Primadonna Resorts, Inc.(a) 77,250
18,700 Prime Hospitality Corp.(a) 163,625
---------------
484,219
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (4.3%)
15,800 Anixter International, Inc.(a) 260,700
8,600 Applied Magnetics Corp.(a)(c) 63,963
13,700 Applied Power, Inc. 488,063
3,300 Astec Industries, Inc.(a) 171,188
9,100 Auspex Systems, Inc.(a) 34,125
7,400 BancTec, Inc.(a) 97,588
5,700 Dialogic Corp.(a) 128,250
7,000 Electroglas, Inc.(a) 101,500
8,000 Exabyte Corp.(a) 59,500
13,800 Fedders Corp. 76,763
5,300 Flow International Corp.(a) 56,975
5,700 Gardner Denver, Inc.(a) 90,488
7,800 Global Industrial Technologies, Inc.(a) 65,325
7,100 Graco, Inc. 197,025
19,000 Komag, Inc.(a) 137,750
8,300 Kulicke & Soffa Industries, Inc.(a) 141,619
4,900 Lindsay Manufacturing Co. 73,500
6,100 Manitowoc Co., Inc. 242,475
5,700 Micros Systems, Inc.(a) 162,450
11,700 National Instruments Corp.(a) 339,300
17,300 Paxar Corp.(a) 181,650
3,900 Robbins & Myers, Inc. 78,000
4,500 SPS Technologies, Inc.(a) 257,625
6,600 Scott Technologies, Inc., Class A(a) 102,300
11,900 Snyder Oil Corp. 153,213
5,700 Telxon Corp. 153,900
4,600 Toro Co. 121,900
7,500 Ultratech Stepper, Inc.(a)(c) 139,688
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
<TABLE>
<C> <S> <C>
9,400 Valmont Industries, Inc. $ 151,575
3,100 Walbro Corp. 23,250
8,700 Watsco, Inc. 156,056
8,200 Xircom, Inc.(a) 247,538
11,100 Zebra Technologies Corp.(a) 372,544
---------------
5,127,786
---------------
INSURANCE AGENTS, BROKERS & SERVICES (0.3%)
6,100 Arthur J. Gallagher & Co. 282,888
4,300 Hilb, Rogal, and Hamilton Co. 81,431
---------------
364,319
---------------
INSURANCE CARRIERS (5.2%)
15,300 American Bankers Insurance Group, Inc. 694,238
8,100 CMAC Investment Corp.(c) 390,825
11,300 Capital Re Corp. 223,175
5,700 Commonwealth Industries, Inc. 54,863
3,600 Compdent Corp.(a) 37,575
7,242 Delphi Financial Group, Class A(a) 338,111
13,300 Enhance Financial Services Group,
Inc.(c) 390,688
3,900 Executive Risk, Inc. 210,600
8,900 Fidelity National Financial, Inc. 292,031
20,300 First American Financial Corp. 621,688
12,400 Fremont General Corp. 624,650
13,300 Frontier Insurance Group, Inc. 188,694
6,100 Life Re Corp. 574,544
13,900 Mutual Risk Management Ltd.(c) 509,956
6,500 NAC Re Corp. 310,375
9,800 Orion Capital Corp. 354,025
10,300 Selective Insurance Group, Inc. 194,413
4,300 Trenwick Group, Inc. 136,525
6,100 Zenith National Insurance Corp. 148,688
---------------
6,295,664
---------------
LEATHER & LEATHER PRODUCTS (0.7%)
6,400 Brown Group, Inc. 114,800
9,400 Justin Industries, Inc. 121,025
1,900 K-Swiss, Inc. 54,150
16,800 Stride Rite Corp. 149,100
4,100 Timberland Co. 167,844
15,500 Wolverine World Wide, Inc. 211,188
---------------
818,107
---------------
LOCAL & SUBURBAN TRANSIT & INTERURBAN HIGHWAY PASSENGER TRANSPORTATION
(0.0%)
5,000 Rural/Metro Corp.(a) 51,250
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.7%)
17,000 Champion Enterprises, Inc.(a) 379,313
16,600 Oakwood Homes Corp. 247,963
3,300 Skyline Corp. 107,250
5,700 TJ International, Inc. 134,663
---------------
869,189
---------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
102
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (3.3%)
7,100 ADAC Laboratories(a) $ 184,600
3,300 Amcast Industrial Corp. 57,956
4,500 Analogic Corp. 159,750
8,900 Avid Technology, Inc.(a) 212,488
10,800 Ballard Medical Products 234,900
4,800 Circon Corp.(a) 69,900
8,400 Coherent, Inc.(a) 106,050
5,300 Cooper Cos., Inc.(a) 112,625
7,200 Cygnus, Inc.(a) 34,650
6,200 Daniel Industries, Inc. 67,813
5,500 Datascope Corp.(a) 121,688
4,900 Diagnostic Products Corp. 126,788
4,700 Hologic, Inc.(a) 61,394
17,900 Input/Output, Inc.(a) 146,556
4,400 Integrated Circuit Systems, Inc.(a) 63,250
4,500 Intermagnetics General Corp.(a) 28,969
10,600 Invacare Corp. 253,738
5,700 Ionics, Inc.(a) 179,194
8,800 Mentor Corp. 162,800
6,600 Molecular Biosystems, Inc.(a) 22,275
2,400 Nashua Corp.(a) 40,050
7,300 ReSound Corp.(a) 38,325
11,500 Respironics, Inc.(a) 217,063
11,100 Roper Industries, Inc. 206,044
8,800 Sola International, Inc.(a) 139,700
3,300 SpaceLabs Medical, Inc.(a) 59,194
11,100 Summit Technology, Inc.(a) 43,013
15,200 Sunrise Medical, Inc.(a) 193,800
8,100 Trimble Navigation Ltd.(a) 72,394
5,400 VISX, Inc.(a) 393,525
4,000 Whittaker Corp.(a) 55,000
7,500 X-Rite, Inc. 65,625
---------------
3,931,117
---------------
METAL MINING (1.6%)
5,800 Brush Wellman, Inc. 93,525
7,800 Coeur D'Alene Mines Corp.(a) 39,488
12,400 Dekalb Genetics Corp., Class B(c) 1,236,900
10,900 Getchell Gold Corp.(a) 178,488
11,100 Glamis Gold Ltd.(a) 24,281
19,600 Hecla Mining Co.(a) 82,075
7,300 Stillwater Mining Co.(a) 266,906
---------------
1,921,663
---------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS (0.1%)
9,900 AMCOL International Corp. 105,188
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.3%)
5,900 Cross (A.T.) Co. 42,038
10,200 Jan Bell Marketing, Inc.(a) 47,175
5,900 K2, Inc. 67,113
5,600 Lydall, Inc.(a) 71,050
7,900 Russ Berrie & Co., Inc. 178,738
---------------
406,114
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
MISCELLANEOUS RETAIL (1.0%)
6,200 Books-A-Million, Inc.(a)(c) $ 182,900
8,900 Cash America International, Inc. 150,188
2,600 Damark International, Inc., Class A(a) 18,200
7,400 Hancock Fabrics, Inc. 62,438
6,700 Jo-Ann Stores, Inc.(a) 105,525
3,300 Lillian Vernon Corp. 50,531
10,500 Michaels Stores, Inc.(a)(c) 189,000
11,300 Sports Authority, Inc.(a) 73,450
12,900 Zale Corp.(a) 369,263
---------------
1,201,495
---------------
MOTION PICTURES (0.1%)
4,000 Carmike Cinemas, Inc.(a) 80,000
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (1.1%)
11,200 American Freightway Corp.(a) 100,800
7,000 Arkansas Best Corp.(a) 41,125
6,000 Frozen Food Express Industries, Inc. 47,250
10,600 Heartland Express, Inc.(a) 181,525
3,900 Landstar Systems, Inc.(a) 159,900
4,400 M.S. Carriers, Inc.(a) 107,800
9,300 USFreightways Corp.(c) 249,938
17,000 Werner Enterprises, Inc. 279,438
9,300 Yellow Corp.(a) 149,963
---------------
1,317,739
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (0.3%)
21,600 AmeriCredit Corp.(a)(c) 298,350
---------------
OIL & GAS EXTRACTION (2.1%)
10,500 Benton Oil & Gas Co.(a) 39,375
8,800 Cabot Oil & Gas Corp. 135,850
16,000 Cross Timbers Oil Co. 182,000
11,500 Devon Energy Corp.(c) 378,781
6,700 HS Resources, Inc.(a) 58,206
12,800 Newfield Exploration Co.(a) 249,600
8,200 Oceaneering International, Inc.(a) 101,988
6,000 Plains Resources, Inc.(a) 106,500
14,200 Pogo Producing Co. 165,075
7,500 Pool Energy Services Co.(a) 84,375
17,800 Pride International, Inc.(a) 134,613
7,200 Remington Oil & Gas Corp.(a) 27,900
36,400 Santa Fe Energy Resources, Inc.(a) 279,825
8,000 Seitel, Inc.(a) 107,000
3,900 St. Mary Land & Exploration Co. 74,100
4,800 Tetra Technologies, Inc.(a) 60,600
16,100 Turboscope Vetco International Corp.(a) 133,831
18,300 Vintage Petroleum, Inc. 188,719
3,200 Wiser Oil Co. 10,400
---------------
2,518,738
---------------
PAPER & ALLIED PRODUCTS (0.5%)
13,100 Buckeye Technologies, Inc.(a) 255,450
4,800 Pope & Talbot, Inc. 47,400
4,200 Republic Group, Inc. 72,188
5,700 Schweitzer-Mauduit International, Inc. 104,025
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
103
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
PAPER & ALLIED PRODUCTS (continued)
<TABLE>
<C> <S> <C>
9,600 Shorewood Packaging Corp.(a) $ 142,200
---------------
621,263
---------------
PERSONAL SERVICES (0.7%)
3,300 Angelica Corp. 60,019
3,500 CPI Corp. 74,813
7,300 G & K Services, Inc. 368,650
8,400 Regis Corp. 281,400
---------------
784,882
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (0.1%)
5,600 WD-40 Co. 173,600
---------------
PRIMARY METAL INDUSTRIES (1.7%)
9,200 Belden, Inc. 155,250
10,500 Birmingham Steel Corp. 51,188
17,500 CommScope, Inc.(a) 265,781
6,000 IMCO Recycling, Inc. 89,625
9,100 Intermet Corp. 124,556
12,600 Mueller Industries, Inc.(a) 287,438
8,700 Northwestern Steel & Wire Co.(a) 11,419
5,000 Quanex Corp. 89,688
14,600 RTI International Metals, Inc.(a)(c) 219,913
3,800 Steel Technologies, Inc. 31,588
7,500 Texas Industries, Inc. 217,031
12,800 Tredegar Industries, Inc. 299,200
6,700 WHX Corp.(a)(c) 70,769
5,000 Wolverine Tube, Inc.(a) 112,188
---------------
2,025,634
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.7%)
13,100 Bowne & Co., Inc. 219,425
4,600 Consolidated Graphics, Inc.(a) 264,788
5,800 Gibson Greetings, Inc.(a) 63,800
11,000 John H. Harland Co. 167,750
5,800 Merrill Corp. 98,600
4,900 New England Business Services, Inc. 156,800
5,400 Thomas Nelson, Inc. 71,213
13,700 Valassis Communications, Inc.(a) 587,388
13,700 World Color Press, Inc.(a) 407,575
---------------
2,037,339
---------------
RAILROAD TRANSPORTATION (0.0%)
3,300 Railtex, Inc.(a) 40,013
---------------
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS (0.5%)
5,500 O'Sullivan Corp. 53,625
19,300 Safeskin Corp.(a) 366,700
6,000 Standard Products Co. 111,750
7,700 Titan International, Inc. 76,519
---------------
608,594
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (2.4%)
15,700 Amresco, Inc.(a) 114,806
4,400 Dain Rauscher Corp. 163,900
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (continued)
<TABLE>
<C> <S> <C>
19,500 E*TRADE Group, Inc.(a)(c) $ 527,719
12,800 Eaton Vance Corp. 311,200
19,600 Legg Mason, Inc. 584,325
9,000 Pioneer Group, Inc 164,250
17,200 Raymond James Financial, Inc. 425,700
6,300 SEI Investments Co. 581,175
---------------
2,873,075
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (1.0%)
6,700 Florida Rock Industries, Inc. 196,394
25,500 Gentex Corp.(a) 468,563
6,300 Libbey, Inc. 194,119
3,400 Lone Star Industries, Inc.(c) 257,338
4,700 Standex International Corp. 109,863
---------------
1,226,277
---------------
TEXTILE MILL PRODUCTS (1.3%)
9,300 Cone Mills Corp.(a) 42,431
8,700 Delta Woodside Industries, Inc. 43,500
4,000 Dixie Group, Inc. 28,250
4,200 Galey & Lord, Inc.(a) 45,413
9,100 Guilford Mills, Inc. 131,381
18,600 Interface, Inc. 232,500
3,800 Johnston Industries, Inc.(a) 14,963
20,300 Mohawk Industries, Inc.(a) 757,444
3,100 Oxford Industries, Inc. 89,513
10,900 Triarc Cos., Inc.(a) 175,763
10,600 Tultex Corp.(a) 11,263
---------------
1,572,421
---------------
TRANSPORTATION BY AIR (1.0%)
23,600 Comair Holdings, Inc. 722,750
10,100 Mesa Air Group, Inc.(a) 80,800
7,800 Offshore Logistics, Inc.(a) 97,013
7,200 Pittston BAX Group 62,550
8,600 Skywest, Inc. 232,738
---------------
1,195,851
---------------
TRANSPORTATION EQUIPMENT (2.4%)
8,400 A. O. Smith Corp. 208,950
9,800 AAR Corp. 247,450
9,900 Arctic Cat, Inc. 103,950
8,200 BE Aerospace, Inc.(a) 194,750
8,700 Clarcor, Inc. 163,669
10,200 Halter Marine Group, Inc.(a) 70,763
4,300 Huffy Corp. 62,350
15,700 JLG Industries, Inc. 258,069
13,000 Orbital Sciences Corp.(a) 497,250
9,200 Polaris Industries, Inc. 320,850
7,400 Regal-Beloit Corp. 185,000
6,500 Simpson Industries, Inc. 68,250
4,500 Spartan Motors, Inc. 28,688
4,700 Standard Motor Products, Inc. 107,219
4,300 Thor Industries, Inc. 102,663
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
104
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
TRANSPORTATION EQUIPMENT (continued)
<TABLE>
<C> <S> <C>
8,100 Wabash National Corp. $ 151,875
8,200 Winnebago Industies, Inc. 98,400
---------------
2,870,146
---------------
TRANSPORTATION SERVICES (0.6%)
12,300 Air Express International Corp. 273,675
8,700 Expeditors International of Washington,
Inc. 334,950
12,700 Fritz Companies, Inc.(a) 123,031
---------------
731,656
---------------
WATER TRANSPORTATION (0.1%)
7,500 Kirby Corp.(a) 149,063
---------------
WHOLESALE TRADE--DURABLE GOODS (2.9%)
7,800 Applied Industrial Technologies, Inc. 109,200
7,100 Barnes Group, Inc. 219,656
3,300 Bell Industries, Inc.(a) 34,444
4,400 Building Materials Holding Corp.(a) 54,175
5,000 Castle (A.M.) & Co. 96,250
5,300 Commercial Metals Co. 134,156
4,900 Digi International, Inc.(a) 63,700
1,800 Global Motorsport Group(a) 34,875
9,800 Ha-Lo Industries, Inc.(a) 312,988
8,200 Hughes Supply, Inc. 227,550
5,700 Insight Enterprises, Inc.(a) 240,113
8,400 Kaman Corp., Class A 136,500
9,700 Kent Electronics Corp.(a) 137,619
4,000 Lawson Products, Inc. 92,000
5,900 Marshall Industries(a) 153,400
11,600 Owens & Minor, Inc. Holding Co. 198,650
11,800 Patterson Dental Co.(a) 491,175
9,400 Pioneer-Standard Electronics, Inc.(c) 102,225
6,700 Reliance Steel & Alumuminum Co. 205,188
2,900 Swiss Army Brands, Inc.(a) 30,088
7,500 TBC Corp.(a) 52,500
7,400 Universal Forest Products, Inc. 147,076
4,500 Vital Signs, Inc. 76,500
6,800 Wynn's International, Inc. 150,875
---------------
3,500,903
---------------
WHOLESALE TRADE--NONDURABLE GOODS (1.7%)
11,300 Barrett Resources Corp.(a) 276,144
7,800 Bindley Western Industries, Inc. 301,275
9,000 Caraustar Industries, Inc. 239,063
15,800 DIMON, Inc. 129,363
13,600 Fleming Cos., Inc. 136,850
4,300 LSB Industries, Inc. 14,781
11,800 Men's Wearhouse, Inc.(a)(c) 298,688
6,500 Myers Industries, Inc. 146,250
7,000 NCS HealthCare, Inc.(a) 141,750
4,000 Nash-Finch Co. 58,250
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
WHOLESALE TRADE--NONDURABLE GOODS (continued)
<TABLE>
<C> <S> <C>
16,900 Richfood Holdings, Inc. $ 313,706
---------------
2,056,120
---------------
TOTAL COMMON STOCKS
(COST $135,245,282) 115,909,451
---------------
REPURCHASE AGREEMENT (4.0%)
$ 4,810,392 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98, to be repurchased at
$4,811,127 (cost $4,810,392)(d) 4,810,392
---------------
U.S. TREASURY BILLS (0.3%)
150,000 5.11% yield, 4/29/99 147,335
190,000 3.80% yield, 9/16/99 183,651
---------------
TOTAL U.S. TREASURY BILLS (COST $331,051) 330,986
---------------
TOTAL INVESTMENTS (100%) (COST $140,386,725) $ 121,050,829
---------------
---------------
FINANCIAL FUTURES CONTRACTS(f)
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
POSITION CONTRACTS INDEX GAIN
- -------- --------- -------------------------------- --------------
<S> <C> <C> <C>
Long 25 Russell 2000 Index Expiring
December 18, 1998 (notional
value $4,970,625) $ 698,925
</TABLE>
<TABLE>
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY STOCK PORTFOLIO
- -----------------------------------------------------------------
COMMON STOCKS (90.8%)
AGRICULTURAL PRODUCTION--LIVESTOCK & ANIMAL SPECIALTIES (2.0%)
135,100 Michael Foods, Inc. $ 3,394,387
---------------
APPAREL & ACCESSORY STORES (0.5%)
46,675 Claire's Stores, Inc. 793,475
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(1.8%)
124,975 Oshkosh B'Gosh, Inc. 2,999,400
---------------
BUSINESS SERVICES (13.4%)
106,900 Acxiom Corp.(a)(c) 2,525,512
129,300 Ciber, Inc.(a)(c) 2,917,331
60,400 Computer Task Group, Inc. 1,630,800
29,600 Envoy Corp.(a)(c) 1,180,300
65,700 International Telecommunication Data
Systems, Inc.(a) 1,617,863
125,550 MAPICS, Inc.(a) 2,440,378
66,500 QuadraMed Corp.(a)(c) 1,596,000
137,250 Sykes Enterprises, Inc.(a) 2,779,313
160,600 Systems & Computers Technologies(a) 2,930,950
93,000 True North Communications, Inc. 2,615,625
---------------
22,234,072
---------------
CHEMICALS & ALLIED PRODUCTS (1.8%)
71,300 Barr Laboratories, Inc.(a) 3,012,425
---------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
105
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY STOCK PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
COMMUNICATIONS (3.1%)
114,400 COMSAT Corp. $ 4,075,500
48,800 MasTec, Inc.(a) 1,134,600
---------------
5,210,100
---------------
DEPOSITORY INSTITUTIONS (7.4%)
74,900 BancWest Corp. 3,239,425
126,991 Downey Financial Corp. 3,301,766
15,000 GBC Bancorp 373,125
89,800 Webster Financial Corp. 2,491,950
78,700 Westamerica Bancorp(c) 2,843,037
---------------
12,249,303
---------------
EATING & DRINKING PLACES (6.1%)
65,000 CEC Entertainment, Inc.(a) 1,925,625
110,400 CKE Restaurants, Inc. 2,697,900
229,150 Foodmaker, Inc.(a) 4,439,781
161,100 Rainforest Cafe, Inc.(a) 1,117,632
---------------
10,180,938
---------------
ELECTRIC, GAS & SANITARY SERVICES (6.7%)
100,000 AGL Resources, Inc. 2,156,250
39,550 CILCORP, Inc. 2,392,775
215,150 El Paso Electric Co.(a) 1,990,137
55,900 Sierra Pacific Resources 2,012,400
146,964 Stericycle, Inc.(a) 2,626,982
---------------
11,178,544
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (4.2%)
48,075 Harman International Industries, Inc. 2,052,202
212,300 Rayovac Corp.(a) 4,909,437
---------------
6,961,639
---------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES SERVICES
(2.4%)
146,300 A.C. Nielson Corp.(a)(c) 4,032,394
---------------
FOOD & KINDRED PRODUCTS (2.0%)
38,118 Corn Products International, Inc. 1,069,686
101,300 Fresh Del Monte Produce (a)(c) 2,228,600
---------------
3,298,286
---------------
HEALTH SERVICES (5.7%)
101,900 Access Health, Inc.(a) 3,655,662
151,200 American Retirement Corp.(a)(c) 2,371,950
294,400 Phycor, Inc.(a) 1,803,200
45,900 Trigon Healthcare, Inc.(a) 1,701,169
---------------
9,531,981
---------------
HOLDING & OTHER INVESTMENT OFFICES (1.8%)
276,500 Sunstone Hotel Investors, Inc. 2,937,813
---------------
HOSPITAL SUPPLY (2.3%)
141,200 Maxxim Medical, Inc.(a) 3,847,700
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY STOCK PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (1.0%)
67,781 FelCor Lodging Trust, Inc. $ 1,614,035
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (0.7%)
74,700 Brooks Automation, Inc.(a) 1,195,200
---------------
INSURANCE CARRIERS (1.3%)
115,200 HCC Insurance Holdings, Inc. 2,138,400
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (0.3%)
22,600 Cohu, Inc. 514,150
---------------
MISCELLANEOUS RETAIL (7.0%)
311,500 Cash America International, Inc. 5,256,563
131,600 Guitar Center, Inc.(a)(c) 3,010,350
100,000 Musicland Stores Corp.(a) 1,693,750
156,600 OfficeMax, Inc.(a) 1,663,875
---------------
11,624,538
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (1.0%)
76,000 Swift Transportation, Inc.(a) 1,667,250
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (1.7%)
177,100 Medallion Financial Corp. 2,745,050
---------------
OIL & GAS EXTRACTION (4.8%)
127,000 Basin Exploration, Inc.(a) 1,476,375
257,100 EEX Corp.(a) 915,919
134,100 Ocean Energy, Inc.(a)(c) 1,089,562
210,900 Tetra Technologies, Inc.(a)(c) 4,428,900
---------------
7,910,756
---------------
PAPER & ALLIED PRODUCTS (2.3%)
193,975 Ivex Packaging Corp.(a) 3,782,513
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (2.8%)
108,950 Valassis Communications, Inc.(a) 4,671,231
---------------
TRANSPORTATION EQUIPMENT (0.5%)
25,900 MotivePower Industries, Inc.(a) 788,331
---------------
WHOLESALE TRADE--DURABLE GOODS (4.9%)
168,000 Keystone Automotive Industries, Inc.(a) 3,202,500
200,300 SCP Pool Corp.(a) 3,104,650
53,300 Henry Schein, Inc.(a) 1,892,150
---------------
8,199,300
---------------
WHOLESALE TRADE--NON-DURABLE GOODS (1.3%)
84,600 United Stationers, Inc.(a) 2,241,900
---------------
TOTAL COMMON STOCKS (COST $139,679,668) 150,955,111
---------------
REPURCHASE AGREEMENT (9.2%)
15,309,274 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98 to be repurchased at
$15,311,613 (cost $15,309,274)(d) 15,309,274
---------------
TOTAL INVESTMENTS (100.0%) (COST $154,988,942) $ 166,264,385
---------------
---------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
106
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
- -----------------------------------------------------------------
COMMON STOCKS (93.9%)
APPAREL & ACCESSORY STORES (5.1%)
52,270 AnnTaylor Stores Corp.(a)(c) $ 1,721,644
69,390 Intimate Brands, Inc. 1,999,299
72,600 Talbots, Inc.(c) 1,851,300
---------------
5,572,243
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(4.3%)
52,100 Columbia Sportswear Co.(a) 1,159,225
67,920 Nautica Enterprises, Inc.(a) 1,337,175
50,650 Phillips-Van Heusen Corp.(c) 354,550
52,150 Pillowtex Corp.(c) 1,760,062
---------------
4,611,012
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING (1.5%)
135,360 Rollins Truck Leasing 1,624,320
---------------
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (3.9%)
42,600 Centex Corp. 1,520,288
41,910 NVR, Inc.(a) 1,650,206
39,780 Ryland Group, Inc. 1,056,656
---------------
4,227,150
---------------
BUSINESS SERVICES (10.2%)
111,660 Avant! Corp.(a)(c) 1,863,326
67,700 Check Point Software Technologies
Ltd.(a)(c) 2,196,019
93,570 Data Dimensions, Inc.(a)(c) 1,193,018
111,000 Personnel Group of America, Inc.(a)(c) 1,831,500
53,801 Project Software & Development, Inc.(a) 1,620,755
85,700 THQ, Inc.(a)(c) 2,399,600
---------------
11,104,218
---------------
CHEMICALS & ALLIED PRODUCTS (0.9%)
58,000 Twinlab Corp.(a) 964,250
---------------
DEPOSITORY INSTITUTIONS (2.9%)
83,200 FirstFed Financial Corp.(a) 1,476,800
68,660 Flagstar Bancorp, Inc. 1,665,005
---------------
3,141,805
---------------
EATING & DRINKING PLACES (5.0%)
91,750 Foodmaker, Inc.(a) 1,777,656
103,400 Ruby Tuesday, Inc. 1,925,825
86,425 Sonic Corp.(a) 1,696,091
---------------
5,399,572
---------------
ELECTRIC, GAS & SANITARY SERVICES (1.6%)
74,300 Calpine Corp.(a) 1,783,200
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (4.9%)
74,000 C-Cube Microsystems, Inc.(a)(c) 1,937,875
179,260 International Fibercom, Inc.(a) 1,434,080
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
<TABLE>
<C> <S> <C>
46,060 Teleflex, Inc. $ 1,957,550
---------------
5,329,505
---------------
FABRICATED METAL PRODUCTS (3.3%)
55,980 AptarGroup, Inc. 1,563,941
86,400 Tower Automotive, Inc.(a)(c) 1,965,600
---------------
3,529,541
---------------
FOOD & KINDRED PRODUCTS (1.6%)
35,530 Canandaigua Brands, Inc.(a) 1,767,617
---------------
FURNITURE & FIXTURES (2.8%)
83,340 La-Z-Boy, Inc. 1,395,945
82,240 Winsloew Furniture, Inc.(a) 1,639,660
---------------
3,035,605
---------------
HEALTH SERVICES (1.7%)
104,750 RehabCare Group, Inc.(a)(c) 1,878,953
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (8.2%)
78,710 Detroit Diesel Corp.(a) 1,628,313
57,595 Graco, Inc. 1,598,261
56,920 Kaydon Corp. 2,009,988
50,060 Pentair, Inc. 1,886,636
62,890 Terex Corp.(a) 1,760,920
---------------
8,884,118
---------------
INSURANCE AGENTS, BROKERS & SERVICE (1.6%)
42,610 E.W. Blanch Holdings, Inc. 1,707,063
---------------
INSURANCE CARRIERS (3.1%)
46,394 Fidelity National Financial, Inc. 1,522,303
30,250 LandAmerica Financial Group, Inc. 1,854,703
---------------
3,377,006
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (3.3%)
70,100 CONMED Corp.(a) 1,910,225
81,610 Esterline Technologies Corp.(a) 1,703,609
---------------
3,613,834
---------------
MISCELLANEOUS RETAIL (2.0%)
80,130 Micro Warehouse, Inc.(a) 2,193,559
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (1.6%)
68,950 M.S. Carriers, Inc.(a) 1,689,275
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (1.5%)
120,100 AmeriCredit Corp.(a)(c) 1,658,881
---------------
OIL & GAS EXTRACTION (1.1%)
81,070 Veritas DGC, Inc.(a) 1,185,649
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (3.0%)
66,300 Big Flower Holdings, Inc.(a) 1,620,206
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
107
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
PRINTING, PUBLISHING & ALLIED INDUSTRIES (continued)
<TABLE>
<C> <S> <C>
51,360 McClatchy Co. $ 1,688,460
---------------
3,308,666
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (1.9%)
27,680 Lone Star Industries, Inc.(c) 2,095,030
---------------
TRANSPORTATION BY AIR (1.3%)
49,505 Midwest Express Holdings, Inc.(a) 1,373,764
---------------
TRANSPORTATION EQUIPMENT (9.5%)
67,990 A. O. Smith Corp. 1,691,250
39,500 Arvin Industries, Inc. 1,659,000
54,710 BE Aerospace, Inc.(a) 1,299,363
39,160 Cordant Technologies, Inc. 1,573,743
75,420 Monaco Coach Corp.(a) 2,262,600
68,125 Varlen Corp. 1,796,797
---------------
10,282,753
---------------
WHOLESALE TRADE--DURABLE GOODS (1.8%)
134,609 CHS Electronics, Inc.(a)(c) 1,993,896
---------------
WHOLESALE TRADE--NONDURABLE GOODS (4.3%)
82,340 Day Runner, Inc.(a)(c) 1,811,480
56,610 Men's Wearhouse, Inc.(a)(c) 1,432,941
51,400 United Stationers, Inc.(a) 1,362,100
---------------
4,606,521
---------------
TOTAL COMMON STOCKS (COST $97,945,170) 101,939,006
---------------
REPURCHASE AGREEMENT (6.1%)
6,586,078 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98 to be repurchased at
$6,587,084 (cost $6,586,078)(d) 6,586,078
---------------
TOTAL INVESTMENTS (100.0%) (COST $104,531,248) $ 108,525,084
---------------
---------------
- -----------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- -----------------------------------------------------------------
COMMON STOCKS (95.3%)
ADMINISTRATION OF ENVIRONMENTAL QUALITY & HOUSING PROGRAMS (1.3%)
141,500 Dames & Moore, Inc. $ 1,812,969
---------------
AEROSPACE (0.7%)
134,900 LMI Aerospace, Inc.(a) 1,028,612
---------------
AMUSEMENT & RECREATION SERVICES (1.1%)
180,819 Station Casinos, Inc.(a) 1,491,757
---------------
APPAREL & ACCESSORY STORES (0.7%)
179,500 Genesco, Inc.(a) 998,469
---------------
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (2.7%)
60,227 M/I Schottenstein Homes, Inc. 1,313,701
170,600 Southern Energy Homes, Inc.(a) 1,194,200
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (continued)
<TABLE>
<C> <S> <C>
38,700 U.S. Home Corp.(a) $ 1,233,563
---------------
3,741,464
---------------
BUSINESS SERVICES (4.8%)
4,628 Grey Advertising, Inc. 1,666,080
33,900 InaCom Corp.(a)(c) 703,425
86,000 Norstan, Inc.(a) 1,316,875
65,100 Ogden Corp. 1,729,219
64,464 Symantec Corp.(a) 1,289,280
---------------
6,704,879
---------------
CHEMICALS & ALLIED PRODUCTS (0.9%)
81,400 Mississippi Chemical Corp. 1,282,050
---------------
DEPOSITORY INSTITUTIONS (14.4%)
52,500 Andover Bancorp, Inc. 1,686,562
40,700 Astoria Financial Corp. 1,831,500
53,691 Banknorth Group, Inc. 1,791,937
63,041 BSB Bancorp, Inc. 1,812,429
63,875 Commercial Federal Corp. 1,465,133
99,400 Commonwealth Bancorp, Inc. 1,515,850
56,374 Community Bank System, Inc. 1,641,893
18,100 First Citizens BancShares, Inc. 1,547,550
63,400 First Republic Bank(a) 1,636,512
103,400 FirstFed Financial Corp.(a) 1,835,350
88,711 Medford Bancorp, Inc. 1,596,798
63,100 Webster Financial Corp. 1,751,025
---------------
20,112,539
---------------
EATING & DRINKING PLACES (2.4%)
133,100 Piccadilly Cafeterias, Inc. 1,422,506
164,800 Ryan's Family Steak Houses, Inc.(a) 1,874,600
---------------
3,297,106
---------------
ELECTRIC, GAS & SANITARY SERVICES (9.7%)
36,800 BEC Energy 1,518,000
73,875 Calpine Corp.(a) 1,773,000
101,900 Central Vermont Public Service 1,063,581
26,900 CILCORP, Inc. 1,627,450
163,700 El Paso Electric Co.(a) 1,514,225
76,600 Public Service Co. of New Mexico 1,488,913
46,900 Rochester Gas & Electric Corp. 1,442,175
43,500 TNP Enterprises, Inc. 1,653,000
75,200 Washington Water Power Co. 1,377,100
---------------
13,457,444
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (6.6%)
43,100 DuPont Photomasks, Inc.(a)(c) 1,594,700
135,000 HMT Technology Corp.(a)(c) 1,535,625
44,700 Harman International Industries, Inc. 1,908,131
114,400 Microsemi Corp.(a) 1,372,800
112,300 Powell Industries, Inc.(a) 1,101,944
166,100 SymmetriCom, Inc.(a) 1,027,744
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
108
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
<TABLE>
<C> <S> <C>
63,400 VLSI Technology, Inc.(a) $ 725,137
---------------
9,266,081
---------------
FABRICATED METAL PRODUCTS (2.1%)
21,500 Alliant Techsystems, Inc.(a) 1,638,031
78,800 Wyman-Gordon Co.(a)(c) 1,231,250
---------------
2,869,281
---------------
FOOD STORES (1.0%)
113,600 Ingles Markets, Inc. 1,363,200
---------------
GENERAL MERCHANDISE STORES (1.8%)
58,100 Ames Department Stores, Inc.(a) 1,379,875
35,400 Shopko Stores, Inc.(a) 1,141,650
---------------
2,521,525
---------------
HEALTH SERVICES (1.3%)
53,300 Integrated Health Services, Inc.(a)(c) 596,294
313,300 PharMerica Inc.(a) 1,292,363
---------------
1,888,657
---------------
HOLDING & OTHER INVESTMENT OFFICES (1.2%)
172,700 Winston Hotels, Inc. 1,619,062
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (3.7%)
55,900 Ampco Pittsburgh Corp. 674,294
76,400 Data General Corp.(a) 1,384,750
74,460 Gleason Corp. 1,424,048
48,700 Gradall Industries, Inc.(a) 654,406
40,500 Tractor Supply Co.(a) 1,063,125
---------------
5,200,623
---------------
INSURANCE CARRIERS (10.6%)
94,100 ARM Financial Group, Inc. 2,023,150
82,200 Acceptance Insurance Cos., Inc.(a) 1,618,312
52,500 Farm Family Holdings, Inc.(a) 1,837,500
78,878 Harleysville Group, Inc. 1,695,877
93,100 HCC Insurance Holdings, Inc.(c) 1,728,169
62,100 Nymagic, Inc. 1,304,100
54,499 PXRE Corp. 1,209,197
58,420 The MONY Group, Inc.(a) 1,807,369
48,600 W.R. Berkley Corp. 1,628,100
---------------
14,851,774
---------------
MACHINERY (0.5%)
76,500 Global Industrial Technologies, Inc.(a) 640,687
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (4.9%)
69,000 CONMED Corp.(a) 1,880,250
75,800 Cooper Cos., Inc. 1,610,750
21,106 Empi, Inc.(a) 476,204
108,800 Respironics, Inc.(a) 2,053,600
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS (continued)
<TABLE>
<C> <S> <C>
34,300 Tech-Sym Corp.(a) $ 859,644
---------------
6,880,448
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.4%)
74,500 Associated Materials Inc.(a) 819,500
45,287 K2, Inc. 515,140
---------------
1,334,640
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (1.1%)
56,900 USFreightways Corp. 1,529,187
---------------
OIL & GAS EXTRACTION (2.5%)
112,440 Key Energy Group, Inc.(a) 702,750
91,062 Marine Drilling Co., Inc.(a) 791,101
103,600 Pride International, Inc.(a) 783,475
24,300 SEACOR SMIT, Inc.(a)(c) 1,160,325
---------------
3,437,651
---------------
PAPER & ALLIED PRODUCTS (0.7%)
70,800 FiberMark, Inc.(a) 915,975
---------------
PERSONAL SERVICES (0.9%)
71,672 Angelica Corp. 1,303,534
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (0.7%)
76,050 Tesoro Petroleum Corp.(a) 1,012,416
---------------
PRIMARY METAL INDUSTRIES (6.8%)
67,900 AK Steel Holding Corp. 1,302,831
76,000 Belden, Inc. 1,282,500
25,600 Carpenter Technology Corp. 904,000
73,650 Chase Industries, Inc.(a) 860,784
91,500 Intermet Corp. 1,252,406
85,400 Lone Star Technologies, Inc.(a) 832,650
133,100 National Steel Corp. 973,294
68,300 RTI International Metals, Inc.(a)(c) 1,028,769
38,400 Texas Industries, Inc. 1,111,200
---------------
9,548,434
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.1%)
79,200 Bowne & Co., Inc. 1,326,600
13,361 Gibson Greetings, Inc.(a) 146,971
---------------
1,473,571
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (1.0%)
107,500 Ragen Mackenzie Group, Inc.(a) 1,363,906
---------------
TEXTILE MILL PRODUCTS (1.3%)
67,222 Burlington Industries, Inc.(a) 701,630
39,700 Oxford Industries, Inc. 1,146,338
---------------
1,847,968
---------------
TRANSPORTATION BY AIR (1.9%)
59,600 Airborne Freight Corp. 1,590,575
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
109
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
TRANSPORTATION BY AIR (continued)
<TABLE>
<C> <S> <C>
72,700 America West Airlines, Inc.(a) $ 1,026,887
---------------
2,617,462
---------------
TRANSPORTATION EQUIPMENT (1.0%)
17,538 Huffy Corp. 254,301
75,700 Johnstown America Industries, Inc.(a) 1,168,619
---------------
1,422,920
---------------
WHOLESALE TRADE--DURABLE GOODS (0.7%)
38,400 Commercial Metals Co. 972,000
---------------
WHOLESALE TRADE--NONDURABLE GOODS (2.8%)
78,400 Nash-Finch Co. 1,141,700
63,100 Performance Food Group Co.(a) 1,545,950
147,100 Standard Commercial Corp. 1,195,188
---------------
3,882,838
---------------
TOTAL COMMON STOCKS (COST $138,105,468) 133,691,129
---------------
REPURCHASE AGREEMENT (4.7%)
6,562,787 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98, to be repurchased at
$6,563,790 (cost $6,562,787)(d) 6,562,787
---------------
TOTAL INVESTMENTS (100.0%) (COST $144,668,255) $ 140,253,916
---------------
---------------
- -----------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- -----------------------------------------------------------------
COMMON STOCKS (92.8%)
AGRICULTURAL PRODUCTION--CROPS (0.9%)
587,700 Chiquita Brands International, Inc. $ 6,611,625
---------------
AMUSEMENT & RECREATION SERVICES (0.8%)
294,600 Family Golf Centers, Inc. (a) 6,057,713
---------------
APPAREL & ACCESSORY STORES (1.4%)
288,900 Goody's Family Clothing (a) 3,250,125
273,600 Just For Feet, Inc. (a) 6,190,200
55,000 Pacific Sunwear of California (a) 814,688
---------------
10,255,013
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(3.9%)
478,400 Nautica Enterprises, Inc.(a) 9,418,500
249,400 Tommy Hilfiger Corp.(a) 15,088,700
242,700 Brown Group, Inc. 4,353,431
---------------
28,860,631
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (1.0%)
272,400 CSK Auto Corp.(a) 7,593,150
---------------
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE
BUILDERS (0.4%)
279,600 Fairfield Communities, Inc.(a) 3,023,175
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS (0.7%)
332,100 Central Garden & Pet Co.(a) $ 5,344,751
---------------
BUSINESS SERVICES (8.7%)
367,600 ABR Information Services(a) 6,249,200
164,400 Adobe Systems, Inc. 7,356,900
187,300 Avant! Corp.(a) 3,125,569
61,300 Engineering Animation, Inc.(a) 2,398,362
218,000 QuadraMed Corp.(a) 5,232,000
333,500 Rental Service Corp.(a) 7,066,030
309,600 Snyder Communications, Inc.(a) 11,010,150
316,900 Synopsys, Inc.(a) 15,013,138
178,100 Visio Corp.(a) 6,300,288
---------------
63,751,637
---------------
CHEMICALS & ALLIED PRODUCTS (13.2%)
194,700 Agouron Pharmaceuticals, Inc.(a) 8,493,788
514,400 Alkermes, Inc.(a) 9,452,100
218,300 Barr Laboratories, Inc.(a) 9,223,175
236,600 Biovail Corp. International(a) 8,044,400
391,300 Genzyme Corp.(a) 16,459,055
42,280 Genzyme-Molecular Oncolgy(a) 147,980
130,000 Idexx Laboratories, Inc.(a) 3,380,000
272,000 Millennium Pharmaceutical, Inc.(a) 5,542,000
343,000 NBTY, Inc. 2,100,875
100,000 Parexel International Corp.(a) 2,606,250
45,000 Protein Design Labs, Inc.(a) 990,000
178,000 Sepracor, Inc.(a) 14,774,000
356,000 Teva Pharmaceutical Industries Ltd. 15,486,000
18,800 Twinlab Corp.(a) 312,550
---------------
97,012,173
---------------
COMMUNICATIONS (3.1%)
418,300 Amdocs Ltd.(a) 6,431,363
181,500 Globalstar Telecommunication Ltd.(a) 3,584,625
710,000 Western Wireless Corp.(a) 12,868,750
---------------
22,884,738
---------------
DOMESTIC DEPOSITORY INSTITUTIONS (2.3%)
810,700 Independence Community Bank 11,451,137
260,200 Riggs National Corp. 5,464,200
---------------
16,915,337
---------------
EATING & DRINKING PLACES (3.3%)
339,300 Avado Brands, Inc. 2,608,369
573,100 Buffets, Inc.(a) 6,733,925
87,900 CEC Entertainment, Inc.(a) 2,604,037
621,400 Foodmaker, Inc.(a) 12,039,625
---------------
23,985,956
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (10.1%)
703,600 Adaptec, Inc.(a) 11,433,500
164,600 American Power Conversion Corp.(a) 6,810,325
903,400 Cabletron Systems, Inc.(a) 12,647,600
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
110
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
<TABLE>
<C> <S> <C>
163,100 Discreet Logic, Inc.(a) $ 2,568,825
183,100 Micrel, Inc.(a) 7,426,994
283,400 Microchip Technology, Inc.(a) 9,865,862
42,500 PMC-Sierra, Inc.(a) 2,289,687
180,900 Pinnacle Systems, Inc.(a) 6,105,375
293,700 Xilinx, Inc.(a) 14,905,275
---------------
74,053,443
---------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (0.9%)
160,700 Metzler Group, Inc.(a) 6,669,050
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT
(1.9%)
619,400 Tower Automotive, Inc.(a) 14,091,350
---------------
FOOD & KINDRED PRODUCTS (0.6%)
165,200 American Italian Pasta Co.(a) 4,171,300
---------------
FURNITURE & FIXTURES (0.5%)
151,500 Furniture Brands International, Inc.(a) 3,853,781
---------------
HEALTH SERVICES (2.0%)
378,800 American Retirement Corp.(a) 5,942,425
161,600 Curative Health Services, Inc.(a) 4,646,000
257,100 Quorum Health Group, Inc.(a) 4,274,288
---------------
14,862,713
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.2%)
79,900 Johns Manville Corp. 1,153,556
---------------
HOSPITAL SUPPLY (0.9%)
229,300 Maxxim Medical, Inc.(a) 6,248,425
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (6.6%)
288,000 Data General Corp.(a) 5,220,000
358,200 Maxtor Corp.(a) 4,947,638
414,900 Pentair, Inc. 15,636,543
201,900 Seagate Technology, Inc.(a) 5,956,050
139,800 SPS Technologies, Inc.(a) 8,003,550
203,100 Tech Data Corp.(a) 8,174,775
---------------
47,938,556
---------------
INSURANCE CARRIERS (2.8%)
129,300 Annuity and Life Reinsurance (Holdings)
Ltd. 3,280,987
124,500 CMAC Investment Corp. 6,007,125
202,000 Everest Reinsurance Holdings, Inc. 7,587,625
294,000 Scottish Annuity & Life Holdings Ltd.(a) 3,711,750
---------------
20,587,487
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (1.9%)
523,500 Steris Corp.(a) 14,036,343
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
MISCELLANEOUS RETAIL (3.2%)
435,400 Borders Group, Inc.(a) $ 10,558,450
135,900 DM Management Co.(a) 1,987,538
1,234,500 Petsmart, Inc.(a) 10,570,406
---------------
23,116,394
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (2.1%)
304,150 Swift Transportation Co., Inc.(a) 6,672,291
311,800 USFreightways Corp. 8,379,625
---------------
15,051,916
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (2.5%)
403,500 American Capital Strategies Ltd.(a) 6,153,375
244,900 Capital Automotive 3,275,538
329,900 Heller Financial, Inc. 8,639,256
---------------
18,068,169
---------------
PAPER & ALLIED PRODUCTS (0.7%)
272,900 Ivex Packaging Corp. 5,321,550
---------------
OIL & GAS EXTRACTION (2.4%)
327,100 Apache Corp. 7,523,300
328,200 Core Laboratories N.V.(a) 6,215,288
420,200 Stolt Comex Seaway S.A.(a) 3,545,438
---------------
17,284,026
---------------
PRIMARY METAL INDUSTRIES (1.0%)
365,650 General Cable Corp. 6,947,350
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.8%)
310,700 Valassis Communications, Inc. 13,321,263
---------------
REAL ESTATE (2.6%)
431,200 Intrawest Corp. 6,926,150
428,300 Newhall Land & Farming Co. 11,751,481
---------------
18,677,631
---------------
TRANSPORTATION BY AIR (0.8%)
209,400 Skywest, Inc. 5,666,888
---------------
TRANSPORTATION EQUIPMENT (4.4%)
458,650 AAR Corp. 11,580,913
341,200 Gulfstream Aerospace Corp.(a) 17,529,150
135,200 Superior Industries International 3,515,200
---------------
32,625,263
---------------
WATER TRANSPORTATION (1.0%)
215,300 Sea Containers Ltd. 6,997,250
---------------
WHOLESALE TRADE--DURABLE GOODS (2.2%)
225,700 HA-LO Industries, Inc.(a) 7,208,294
128,800 Metals USA, Inc.(a) 1,199,450
246,300 Reliance Steel & Aluminum Co. 7,542,937
---------------
15,950,681
---------------
TOTAL COMMON STOCKS (COST $579,411,387) 678,990,284
---------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
111
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
WARRANTS (0.3%)
437,000 Golden State Bancorp Litigation
Warrant(a) (cost $2,489,951) $ 1,993,813
---------------
REPURCHASE AGREEMENT (6.9%)
50,292,318 NationsBanc Montgomery Securities, Inc.,
5.50%, 12/1/98 to be repurchased at
$50,299,897 (cost $50,292,318)(d) 50,292,318
---------------
TOTAL INVESTMENTS (100%) (COST $632,193,655) $ 731,276,415
---------------
---------------
- -----------------------------------------------------------------
INTERNATIONAL PORTFOLIO
- -----------------------------------------------------------------
STOCKS & WARRANTS (94.5)
BELGIUM (2.0%)
COMMON STOCKS
44,520 Electrafina SA $ 5,869,648
47,390 Grupo Bruxelles Lambert(c) 8,923,826
61,490 KBC Bancassurance Holding(c) 4,414,802
---------------
19,208,276
---------------
DENMARK (2.6%)
COMMON STOCKS
73,100 Den Danske Bank Group 9,438,861
232,650 International Service System A/S 15,382,118
---------------
24,820,979
---------------
FRANCE (18.0%)
COMMON STOCKS
36,390 Accor SA 8,020,789
25,960 Air Liquide 4,426,457
69,930 Alcatel Alsthom 9,272,704
83,720 AXA 10,850,296
59,390 Bouygues SA 11,100,543
61,900 Canal Plus 14,265,641
98,380 Etablissements Economiques du Casino
Guichard-Perrachon SA 9,367,541
126,545 Elf Aquitaine 15,820,356
183,724 France Telecom SA 12,796,406
53,780 Groupe Danone 15,741,783
58,750 Lafarge SA 5,552,617
26,150 Sanofi SA 4,680,182
105,880 Suez Lyonnaise des Eaux 20,966,152
70,460 Total SA-B 8,759,046
82,398 Vivendi 18,684,552
---------------
170,305,065
---------------
WARRANTS
55,391 Cie Generale Des Eaux(a) 112,321
---------------
170,417,386
---------------
GERMANY (5.8%)
COMMON STOCKS
301,080 Bayer AG 12,393,641
108,228 DaimlerChrysler AG(a)(c) 10,382,440
231,540 Hoechst AG 9,969,311
170,200 Mannesmann AG 18,471,552
62,480 Veba AG 3,473,575
---------------
54,690,519
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- -----------------------------------------------------------------
IRELAND (2.1%)
COMMON STOCKS
405,840 Bank of Ireland $ 8,346,937
163,450 Elan Corp plc--ADR(a)(c) 11,135,031
---------------
19,481,968
---------------
ITALY (7.2%)
COMMON STOCKS
200,750 Assicurazioni Generali 7,518,457
8,665,350 Banca di Roma(a)(c) 15,036,192
1,759,850 ENI SpA 10,948,145
980,450 Italgas SpA(c) 4,860,815
1,554,610 Olivetti SpA(a) 4,085,825
1,455,350 Telecom Italia Mobile SpA 9,562,374
1,958,472 Telecom Italia SpA(c) 15,915,547
---------------
67,927,355
---------------
JAPAN (14.8%)
COMMON STOCKS
336,000 Amada Metrecs Co. Ltd. 1,579,954
258,000 Arcland Sakamoto(c) 1,889,034
630,000 Asahi Bank Ltd. 2,408,884
274,000 Bridgestone Corp. 6,419,785
265,650 Credit Saison Co. Ltd.(c) 6,072,864
239,000 Dai-Dan Co. Ltd. 1,555,483
1,122,000 Dai-Tokyo Fire & Marine Insurance Co.
Ltd. 3,705,923
319,000 Daiwa House Industry Co. Ltd. 3,386,715
847 East Japan Railway Co.(c) 4,926,822
151,000 Fuji Photo Film Co. 5,650,830
667,000 Hanshin Electric Railway Co. Ltd. 2,029,434
952,000 Hitachi Ltd. 5,738,952
79,000 Ito-Yokado Co. Ltd. 4,833,062
314,000 Japan Airport Terminal Co. Ltd. 1,708,965
452,000 Matsushita Electric Industrial Co.
Ltd.(c) 7,280,833
69,100 Meiko Shokai 1,068,093
506,000 Mitsubishi Corp. 3,252,034
880,000 Mitsui & Co. Ltd.(c) 5,032,867
230,000 Mitsui Fudosan Co. Ltd. 1,766,352
181,000 Murata Manufacturing Co. Ltd. 7,097,462
69,600 Nagaileben Co. Ltd.(c) 1,240,026
70,000 Nitto Denko Corp.(c) 1,038,155
260,000 Nomura Securities Co. Ltd. 2,531,891
137 NTT Mobile Communications Network, Inc. 5,238,366
556,000 Oji Paper Co. Ltd.(c) 2,501,367
263,000 Omron Corp. 3,145,216
51,000 Rohm Co. Ltd. 4,315,002
31,300 SMC Corp.(c) 2,340,116
64,000 Secom Co. Ltd. 4,743,248
337,000 Showa Shell Sekiyu 1,965,742
60,000 Sony Corp. 4,397,982
2,386,000 Sumitomo Metal Industries(c) 2,853,417
231,000 Takeda Chemical Industries 7,798,975
38,500 Toho Co. Ltd. 4,591,686
324,000 Tokio Marine & Fire Insurance Co. Ltd. 3,663,846
547,000 Toppan Printing Co. Ltd. 6,497,071
170,000 Toyota Motor Corp. 4,315,002
---------------
140,581,456
---------------
NETHERLANDS (6.7%)
COMMON STOCKS
401,000 Elsevier NV 5,279,083
353,125 Heineken NV 17,984,075
393,152 Koninklijke Ahold NV(c) 13,671,445
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
112
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONCLUDED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
NETHERLANDS (continued)
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
117,091 Oce NV $ 4,126,988
135,230 Philips Electronics NV 8,582,204
545,000 TNT Post Group NV 13,749,345
---------------
63,393,140
---------------
PORTUGAL (0.4%)
COMMON STOCKS
177,750 Semapa--Sociedade de Investimento e
Gestao SGPS SA 3,659,451
---------------
SINGAPORE (0.9%)
COMMON STOCKS
639,000 City Developments Ltd.(c) 3,045,628
391,200 Development Bank of Singapore Ltd.(a)(c) 2,969,035
223,828 Singapore Press Holdings Ltd. 2,378,257
---------------
8,392,920
---------------
SPAIN (3.1%)
COMMON STOCKS
132,000 Centros Comerciales Pryca SA 3,160,551
1,020,075 Endesa SA 26,692,955
---------------
29,853,506
---------------
SWEDEN (1.9%)
COMMON STOCKS
122,200 Atlas Copco AB 2,688,777
75,350 Atlas Copco AB, A Shares 1,722,949
276,400 Securitas AB, B Shares 4,122,576
344,650 Telefonaktiebolaget LM Ericsson, B
Shares 9,601,344
---------------
18,135,646
---------------
SWITZERLAND (10.2%)
COMMON STOCKS
6,380 ABB AG 7,964,111
4,790 Nestle SA 9,982,752
19,048 Novartis AG 35,864,720
1,273 Roche Holding AG 15,003,378
4,940 Schweizerische Rueckversicherungs-
Gesellschaft 12,524,844
52,380 UBS AG 15,809,989
---------------
97,149,794
---------------
UNITED KINGDOM (18.8%)
COMMON STOCKS
1,131,900 Airtours plc 7,754,019
957,370 Allied Domecq plc 8,154,555
1,462,000 ASDA Group plc 3,801,007
522,200 British Airways plc 3,534,203
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
UNITED KINGDOM (continued)
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
271,000 British American Tobacco plc $ 2,486,105
708,300 British Energy plc 7,564,709
515,380 British Land Co. plc 4,440,878
656,050 British Petroleum Co. plc 10,233,860
1,121,600 British Sky Broadcasting Group plc 9,275,695
669,480 British Telecommunications plc 9,177,998
722,700 Cable & Wireless plc 9,185,853
252,632 COLT Telecom Group plc(a) 3,302,815
1,645,800 David S. Smith Holdings plc 3,185,376
267,000 De La Rue plc 780,109
951,030 Electrocomponents plc 6,750,461
360,000 EMI Group plc 2,145,262
429,600 Enterprise Oil plc 2,361,453
47,342 Garban plc(a) 185,212
376,420 Glaxo Wellcome plc 11,911,475
369,600 Great Universal Stores plc 3,846,695
15,000 Johnson Matthey plc 102,076
699,710 Lloyds TSB Group plc 9,731,028
1,534,000 LucasVarity plc 5,266,953
963,810 Marks & Spencer plc 6,554,799
1,263,900 MFI Furniture Group plc 725,000
3,229,400 Pilkington Brothers plc 3,465,021
401,100 Reuters Group plc 3,876,594
2,059,450 Rolls-Royce plc(a) 8,328,908
53,000 Standard Chartered plc 563,420
371,405 Tibbett & Britten Group plc 1,900,554
473,424 United News & Media plc 4,575,598
1,069,181 Vodafone Group plc 15,795,923
535,476 Williams Holdings plc 3,314,683
99,000 Zeneca Group plc 4,118,191
---------------
178,396,488
---------------
TOTAL STOCKS & WARRANTS (COST $795,603,377) 896,108,884
---------------
CASH MANAGEMENT ACCOUNTS (5.5%)
51,776,184 Treasury Fund (cost $51,776,184) 51,776,184
---------------
TOTAL INVESTMENTS (100.0%) (COST $847,379,560) $ 947,885,068
---------------
---------------
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACT
CONTRACTS TO SELL
</TABLE>
<TABLE>
<CAPTION>
EXPIRATION UNDERLYING FACE UNREALIZED
DATE CURRENCY UNITS AMOUNT OF VALUE APPRECIATION
- ---------- ------------- ------------ --------------- ------------
<C> <S> <C> <C> <C>
British
12/17/98 Pounds 30,570,000 $ 50,443,557 $ 826,817
12/18/98 Japanese Yen 7,414,510,000 60,457,914 (4,064,662)
--------------- ------------
$ 110,901,471 $(3,237,845)
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
113
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
(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. The Board of Trustees has deemed these securities to be liquid
at November 30, 1998.
(c) Part or all of this investment is on loan. See Note 6 of Notes to Financial
Statements.
(d) The Portfolios have invested in a joint repurchase agreement. The following
represents the collateral on the NationsBanc Montgomery Securities, Inc.
joint repurchase agreement: Collateralized by $299,020,439 FNMA Discount
Notes, 6.00%, 10/1/13; with a total market value of $294,799,171.
(e) At November 30, 1998, $785,000 of U.S. Treasury Bills, 4/29/99, with a
market value of $771,053 and $1,450,000 of U.S. Treasury Bills, 9/16/99,
with a market value of $1,401,541, were pledged to cover margin requirements
for open futures contracts.
(f) At November 30, 1998, $150,000 of U.S. Treasury Bills, 4/29/99, with a
market value of $147,335 and $190,000 of U.S. Treasury Bills, 9/16/99, with
a market value of $183,651, were pledged to cover margin requirements for
open futures contracts.
ABBREVIATIONS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
BIG Bond Insurance Group
C/O Crossover refunding
COLL Collateralized
COP Certificate of Participation
DOT Department of Transportation
EDA Economic Development Authority
EFA Education Finance Authority
ETM Escrowed to Maturity
FAMC Federal Agricultural Mortgage Corporation
FFCB Federal Farm Credit Bank
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
HRA Housing & Redevelopment Authority
HUD Department of Housing and Urban Development
IDA Industrial Development Authority
ISD Independent School District
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
MFHR Multi Family Housing Revenue
PCR Pollution Control Revenue
PFA Public Finance Authority
PILOT Payment in Lieu of Taxes
P/R Prerefunded
RV Revenue Bonds
SCEP State Credit Enhancement Program
SD School District
SFM Single Family Mortgage
SLMA Student Loan Marketing Association
TVA Tennessee Valley Authority
USG United States Government
UTGO Unlimited Tax General Obligation
VA Veterans' Administration
V/R Variable rate
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
114
<PAGE>
SCHRODER CAPITAL FUNDS
SEMI-ANNUAL REPORT
NOVEMBER 30, 1998
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO
SCHRODER GLOBAL GROWTH PORTFOLIO
SCHRODER EM CORE PORTFOLIO
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<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........................... $305,413,979 $2,849,179 $ 11,052,557
Net unrealized appreciation (depreciation).... 15,224,750 247,439 (68,590)
------------- ----------- ------------
TOTAL INVESTMENTS AT VALUE...................... 320,638,729 3,096,618 10,983,967
Cash............................................ 10,388 410,429 446,265
Receivable for investments sold................. 107,103 - 141,083
Receivable from administrator (Notes 3 and 6)... - 51,030 34,535
Receivable for dividends, tax reclaims and
interest...................................... 120,178 9,397 61,274
Organization costs, net of amortization (Note
2)............................................ 13,568 754 762
------------- ----------- ------------
TOTAL ASSETS...................................... 320,889,966 3,568,228 11,667,886
------------- ----------- ------------
LIABILITIES
Payable for investments purchased............... 3,959,211 4,448 110,724
Payable for Fund shares redeemed................ - 29 -
Payable for forward foreign currency contracts
(Note 2)...................................... - 11,739 16,858
Payable to investment adviser (Note 3).......... 154,161 - -
Payable to other related parties (Note 3)....... 19,270 211 708
Accrued expenses and other liabilities.......... 82,443 51,124 36,025
------------- ----------- ------------
TOTAL LIABILITIES................................. 4,215,085 67,551 164,315
------------- ----------- ------------
NET ASSETS........................................ $316,674,881 $3,500,677 $ 11,503,571
------------- ----------- ------------
------------- ----------- ------------
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
116
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE SIX MONTHS ENDED NOVEMBER 30,
1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCHRODER U.S.
SMALLER SCHRODER SCHRODER
COMPANIES GLOBAL GROWTH EM CORE
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividend income (a)................... $ 890,763 $ 20,875 $ 98,853
Interest income....................... 471,276 15,419 50,611
------------- ------------- -------------
TOTAL INVESTMENT INCOME............... 1,362,039 36,294 149,464
------------- ------------- -------------
EXPENSES
Advisory (Note 3)..................... 970,320 8,314 63,973
Administration (Note 3)............... - 2,494 6,397
Subadministration (Note 3)............ 121,290 12,500 12,500
Interestholder recordkeeping (Note
3).................................. 6,063 6,050 6,125
Custody............................... 18,233 11,074 55,750
Accounting (Note 3)................... 25,000 30,000 37,000
Legal................................. 28,830 604 1,604
Audit................................. 29,697 11,139 14,204
Trustees' fees........................ 15,584 151 758
Pricing services...................... 3,622 4,662 6,646
Amortization of organization costs
(Note 2)............................ 2,509 97 97
Miscellaneous......................... 11,134 140 446
------------- ------------- -------------
TOTAL EXPENSES........................ 1,232,282 87,225 205,500
Fees waived and expenses reimbursed
(Note 6)........................... - (73,090) (112,607)
------------- ------------- -------------
NET EXPENSES.......................... 1,232,282 14,135 92,893
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS).......... 129,757 22,159 56,571
------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on
Securities.......................... (34,243,369) (116,064) (4,836,204)
Foreign currency transactions....... - (672) (41,171)
------------- ------------- -------------
Net Realized Gain (Loss) on
Investments...................... (34,243,369) (116,736) (4,877,375)
Net Change in Unrealized Appreciation
(Depreciation) on
Securities.......................... (24,065,749) 12,384 2,261,068
Foreign currency transactions....... - 342 (25)
------------- ------------- -------------
Net Change in Unrealized
Appreciation (Depreciation) on
Investments...................... (24,065,749) 12,726 2,261,043
------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS......................... (58,309,118) (104,010) (2,616,332)
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. $(58,179,361) $ (81,851) $ (2,559,761)
------------- ------------- -------------
------------- ------------- -------------
(a) Net of foreign withholding taxes
of..................................... $ - $ 3,200 $ 6,907
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
117
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE PERIOD ENDED MAY 31, 1998 (a) AND THE SIX MONTHS ENDED NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCHRODER U.S. SCHRODER SCHRODER
SMALLER COMPANIES GLOBAL GROWTH EM CORE
PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ------------- ------------
<S> <C> <C> <C>
NET ASSETS, MAY 31, 1997.................................... $103,385,258 $ - $ -
----------------- ------------- ------------
OPERATIONS
Net investment income (loss).............................. 234,568 19,344 210,351
Net realized gain (loss) on investments sold.............. 6,355,034 (30,332) (518,984 )
Net change in unrealized appreciation (depreciation) on
investments............................................. 28,258,572 223,207 (2,346,562 )
----------------- ------------- ------------
Net increase (decrease) in net assets resulting from
operations.............................................. 34,848,174 212,219 (2,655,195 )
----------------- ------------- ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions............................................. 228,163,060 3,070,201 39,419,804
Withdrawals............................................... (10,593,071) (119,888) (10,034,574 )
----------------- ------------- ------------
Net increase (decrease) from transactions in investors'
beneficial interest..................................... 217,569,989 2,950,313 29,385,230
----------------- ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS....................... 252,418,163 3,162,532 26,730,035
----------------- ------------- ------------
NET ASSETS, MAY 31, 1998.................................... 355,803,421 3,162,532 26,730,035
----------------- ------------- ------------
OPERATIONS
Net investment income (loss).............................. 129,757 22,159 56,571
Net realized gain (loss) on investments sold.............. (34,243,369) (116,736) (4,877,375 )
Net change in unrealized appreciation (depreciation) on
investments............................................. (24,065,749) 12,726 2,261,043
----------------- ------------- ------------
Net increase (decrease) in net assets resulting from
operations.............................................. (58,179,361) (81,851) (2,559,761 )
----------------- ------------- ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions............................................. 51,966,693 481,882 3,165,981
Withdrawals............................................... (32,915,872) (61,886) (15,832,684 )
----------------- ------------- ------------
Net increase (decrease) from transactions in investors'
beneficial interest..................................... 19,050,821 419,996 (12,666,703 )
----------------- ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS....................... (39,128,540) 338,145 (15,226,464 )
----------------- ------------- ------------
NET ASSETS, NOVEMBER 30, 1998............................... $316,674,881 $3,500,677 $11,503,571
----------------- ------------- ------------
----------------- ------------- ------------
(a) Beginning of period..................................... Jun 1, 1997 Oct 15, 1997 Oct 30, 1997
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
118
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE
NET ASSETS (a)
---------------------------------------------
NET
INVESTMENT GROSS PORTFOLIO
INCOME (LOSS) NET EXPENSES EXPENSES TURNOVER RATE
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO
- -------------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 0.08% 0.76% 0.76% 67.12%
June 1, 1997 to May 31, 1998.......... 0.10% 0.75% 0.75% 54.98%
November 1, 1996 to May 31, 1997...... 0.22% 0.85% 0.95% 34.45%
August 15, 1996(b) to October 31,
1996................................ 0.50% 0.85% 1.31% 17.30%
SCHRODER GLOBAL GROWTH PORTFOLIO
- -------------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 1.13% 0.85% 5.25% 45.93%
October 15, 1997(b) to May 31, 1998... 1.18% 0.85% 6.81% 13.82%
SCHRODER EM CORE PORTFOLIO
- -------------------------------------------------------------------------------------------------------
June 1, 1998 to November 30, 1998..... 0.88% 1.45% 3.21% 75.15%
October 30, 1997(b) to May 31, 1998... 1.35% 1.45% 2.38% 22.97%
</TABLE>
(a) Annualized.
(b) Commencement of operations.
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
119
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
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 eight investment portfolios. Included in this report are
Schroder U.S. Smaller Companies Portfolio, Schroder Global Growth Portfolio and
Schroder EM Core Portfolio (individually, 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.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, that require management to make certain 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 summarizes the 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 mean of the
closing bid and ask prices ("mid-market price"), or if none, the last sale price
on the preceding trading day. Securities traded in over-the-counter markets, or
listed securities for which no trade is reported on the valuation date,
generally are valued at the most recent reported mid-market price. Prices used
for valuations generally are provided by independent pricing services. Domestic
short-term investments, having a maturity of 60 days or less, generally are
valued at amortized cost, which approximates market value. Foreign currency
denominated short-term investments are valued at local amortized cost and then
translated into U.S. dollars. 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. As of
November 30, 1998, the Portfolios did not hold a position in fair valued
securities.
SECURITY TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
accounted for on the trade date. Dividend income is recorded on the ex-dividend
date. With respect to dividends on foreign securities, certain instances may
arise where a Portfolio is not notified of a dividend until after the dividend
date has passed. In these instances, a dividend is recorded as soon as the
Portfolio is informed of the dividend. Dividend income is recorded net of
unrecoverable withholding tax. Interest income, including amortization of
premium or accretion of discount, 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.
The Schroder Global Growth Portfolio and Schroder EM Core Portfolio may enter
into forward contracts to purchase or sell foreign currencies to protect the
U.S. dollar value of the underlying portfolio against the effect 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 daily as unrealized gain or loss; realized
gain or loss includes net gain or loss on contracts that have terminated by
settlement or by the Portfolios entering into offsetting commitments.
REPURCHASE AGREEMENTS--The Portfolios 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.
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 in proportion to each Portfolio's net assets.
ORGANIZATION COSTS--Costs incurred by each Portfolio in connection with its
organization are 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%, 0.50% and 1.00%,
respectively, of each Portfolio's average daily net assets.
ADMINISTRATOR AND SUBADMINISTRATOR--On behalf of the Portfolios, Schroder Core
has entered into an Administration Agreement with Schroder Fund Advisors Inc.
("SFA") which entitles SFA to receive from Schroder Global Growth Portfolio and
Schroder EM Core Portfolio an annual fee, payable monthly, at a rate of 0.15%
and 0.10%, respectively, of each Portfolio's average daily net assets. In
addition, Schroder Core has entered into a
SCHRODER CAPITAL FUNDS
120
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENT ADVISORY AND OTHER SERVICES (CONTINUED)
Subadministration Agreement with Forum Administrative Services, LLC ("FAdS")
under which FAdS 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 0.075% of each Portfolio's average daily net
assets subject to an annual minimum of $25,000.
OTHER SERVICE PROVIDERS--Forum Accounting Services, LLC ("FAcS") performs
portfolio accounting services 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 amounts of $36,000, $60,000
and $60,000 per year, respectively, plus certain other charges, based upon the
number and types of portfolio transactions. FAcS also provides interestholder
recordkeeping services to the Portfolios for which it receives, from Schroder
Core, $12,000 per year, per Portfolio, plus certain other charges.
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, 1998 were as
follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
------------------ ------------------
<S> <C> <C>
Schroder U.S. Smaller Companies
Portfolio.............................. $ 223,677,635 $ 198,576,930
Schroder Global Growth Portfolio........ 1,707,964 1,075,814
Schroder EM Core Portfolio.............. 9,062,966 19,491,649
</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, 1998 were as follows:
<TABLE>
<CAPTION>
TAX UNREALIZED UNREALIZED NET APPRECIATION
BASIS APPRECIATION DEPRECIATION (DEPRECIATION)
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Schroder U.S. Smaller Companies
Portfolio.............................. $ 305,413,979 $ 38,046,811 $ 22,822,061 $ 15,224,750
Schroder Global Growth Portfolio........ 2,849,179 388,489 141,050 247,439
Schroder EM Core Portfolio.............. 11,052,557 1,486,041 1,554,631 (68,590)
</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 interestholders 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 AND REIMBURSEMENT OF EXPENSES
For the period ended November 30, 1998, Schroder Core's service providers
voluntarily waived and/or reimbursed the following fees or expenses:
<TABLE>
<CAPTION>
EXPENSES
FEES WAIVED REIMBURSED
------------------------------ ------------------
SCMI SFA FAdS SFA
------- ------ ------- ------------------
<S> <C> <C> <C> <C>
Schroder Global Growth Portfolio........ $ 8,314 $ 2,494 $ 11,252 $ 51,030
Schroder EM Core Portfolio.............. 63,973 6,397 7,702 34,535
</TABLE>
NOTE 7. CONCENTRATION OF RISK
Schroder Global Growth Portfolio and Schroder EM Core Portfolio may invest more
than 25% of their total assets in issuers located in any one country. To the
extent that they do so, the Portfolios are susceptible to a range of factors
that could adversely affect that country, including political and economic
developments and foreign exchange-rate fluctuations. As a result of investing
substantially in one country, the value of a Portfolio's assets may fluctuate
more widely than the value of shares of a comparable fund with a lesser degree
of geographic concentration. Schroder Global Growth Portfolio and Schroder EM
Core Portfolio invest in countries with limited or developing capital markets.
Investments in these markets may involve greater risks than investments in more
developed markets.
SCHRODER CAPITAL FUNDS
121
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO
- -----------------------------------------------------------------
COMMON STOCK (94.4%)
BASIC MATERIALS (3.0%)
125,300 Cambrex Corp. $ 3,508,400
69,800 Ferro Corp. 1,950,038
207,400 Ivex Packaging Corp.(a) 4,044,300
---------------
9,502,738
---------------
CAPITAL GOODS/CONSTRUCTION (7.1%)
193,300 Allied Waste Industries, Inc.(a) 3,938,488
118,200 Harsco Corp. 3,826,725
75,800 Hayes Lemmerz International, Inc.(a) 2,387,700
188,200 Mueller Industries, Inc.(a) 4,293,313
1,492,400 Safety Kleen Corp.(a) 5,130,125
148,400 Superior Services, Inc.(a) 2,726,850
---------------
22,303,201
---------------
CONSUMER CYCLICAL (19.0%)
18,400 Action Performance Cos., Inc.(a) 671,600
206,700 Blyth Industries, Inc.(a) 7,014,881
92,500 CEC Entertainment, Inc.(a) 2,740,313
85,200 Department 56, Inc.(a) 2,934,075
352,000 Fairfield Communities, Inc.(a) 3,806,000
115,700 Family Dollar Stores, Inc. 2,321,231
188,550 Fossil, Inc.(a) 5,220,478
254,000 Goody's Family Clothing, Inc. 2,857,500
164,600 Interface, Inc. 2,057,500
113,200 Just For Feet, Inc.(a) 2,561,150
207,000 Musicland Stores Corp.(a) 3,506,063
42,100 Papa Johns International, Inc. (a) 1,765,569
262,800 Pier 1 Imports, Inc. 2,825,100
133,500 Pillowtex Corp. 4,505,625
6,200 Regis Corp. 207,700
148,300 Shopko Stores, Inc.(a) 4,782,675
195,075 Sonic Corp.(a) 3,828,347
113,000 Trans World Entertainment Corp.(a) 2,613,125
130,700 WestPoint Stevens, Inc.(a) 3,921,000
---------------
60,139,932
---------------
CONSUMER STAPLES (9.1%)
98,000 American Italian Pasta Co.(a) 2,474,500
256,300 Aurora Foods, Inc.(a) 5,013,869
38,600 Earthgrains Co. 1,240,025
265,800 Foodmaker, Inc.(a) 5,149,875
86,200 International Home Foods, Inc.(a) 1,691,675
135,900 Keebler Foods Co.(a) 4,578,131
202,700 Richfood Holdings, Inc. 3,762,619
104,300 Suiza Foods Corp.(a) 4,941,213
---------------
28,851,907
---------------
ENERGY (3.9%)
142,200 B.J. Service Co.(a) 1,964,138
81,100 Cooper Cameron Corp.(a) 1,976,812
505,300 El Paso Electric Co.(a) 4,674,025
60,400 Hanover Compressor Co.(a) 1,366,550
133,600 Weatherford International, Inc.(a) 2,438,200
---------------
12,419,725
---------------
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
FINANCIAL (11.0%)
105,500 Affiliated Managers Group, Inc.(a) $ 2,828,719
149,200 AmerUs Life Holdings, Inc. 3,291,725
88,100 Bank United Corp. 3,865,388
94,775 Commercial Federal Corp. 2,173,902
64,300 Cullen/Frost Bankers, Inc. 3,448,088
111,500 Duff & Phelps Credit Rating Co. 5,811,938
58,400 FBL Financial Group, Inc. 1,430,800
88,400 Fremont General Corp. 4,453,150
143,200 Heller Financial, Inc. 3,750,050
99,950 North Fork BanCorp, Inc. 2,105,197
54,800 Sun Communities, Inc. 1,784,425
---------------
34,943,382
---------------
HEALTH CARE (11.6%)
128,500 ADAC Laboratories(a) 3,341,000
25,000 Amerisource Health Corp.(a) 1,600,000
37,300 Beckman Coulter, Inc. 1,799,725
73,200 Express Scripts, Inc.(a) 4,026,000
109,300 HCR Manor Care, Inc.(a) 3,470,275
200,900 Haemonetics Corp.(a) 4,532,806
77,600 Henry Schein, Inc.(a) 2,754,800
116,200 Invacare Corp. 2,781,538
116,200 Ocular Sciences, Inc.(a) 2,614,500
201,000 PSS World Medical, Inc.(a) 4,170,750
91,700 Pharmaceutical Product Development,
Inc.(a) 2,624,913
121,100 Sybron International Corp.(a) 3,012,362
---------------
36,728,669
---------------
TECHNOLOGY (13.7%)
220,300 Antec Corp.(a) 4,075,550
96,500 Boole & Babbage, Inc.(a) 3,051,813
42,500 Dallas Semiconductor Corp. 1,604,375
172,800 EG&G, Inc. 4,827,600
128,900 Evans & Sutherland Computer Corp.(a) 2,513,550
79,900 INSpire Insurance Solutions, Inc.(a) 2,676,650
65,500 MAPICS, Inc.(a) 1,273,156
61,000 Micros Systems, Inc.(a) 1,738,500
170,900 MicroTouch Systems, Inc.(a) 2,307,150
254,900 Pairgain Technologies, Inc.(a) 2,580,863
89,000 Policy Management Systems Corp.(a) 4,550,125
31 Structural Dynamics Research Corp.(a) 541
29,700 Symbol Technologies, Inc. 1,447,875
66,800 Thomas & Betts Corp. 2,893,275
138,900 Wang Laboratories, Inc.(a) 3,541,950
127,300 Zebra Technologies Corp.(a) 4,272,506
---------------
43,355,479
---------------
TRANSPORTATION/SERVICES/MISCELLANEOUS (16.0%)
93,100 ASA Holdings, Inc. 3,159,581
111,300 Alexandria Real Estate Equities, Inc. 3,436,388
71,300 CNF Transportation, Inc. 2,544,520
56,200 Catalina Marketing Corp.(a) 3,273,650
222,800 Catellus Development Corp.(a) 3,133,125
82,650 Comair Holdings, Inc. 2,531,156
203,300 Group Maintenance America Corp.(a) 2,719,140
</TABLE>
See Notes to Financial Statements SCHRODER CAPITAL FUNDS
122
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
COMMON STOCK (continued)
TRANSPORTATION/SERVICES/MISCELLANEOUS (continued)
<TABLE>
<C> <S> <C>
71,600 Jacor Communications, Inc.(a) $ 4,166,225
230,400 Mail-Well, Inc.(a) 2,980,800
160,200 Manufactured Home Communities, Inc. 3,924,900
147,600 Mesaba Holdings, Inc.(a) 2,767,500
83,900 RemedyTemp, Inc.(a) 1,216,550
287,500 School Specialty, Inc.(a) 4,851,555
91,100 True North Communications Inc. 2,562,188
82,700 Valassis Communications, Inc.(a) 3,545,760
128,200 Young & Rubicam, Inc.(a) 3,829,975
---------------
50,643,013
---------------
TOTAL COMMON STOCK
(COST $283,663,296) 298,888,046
---------------
<CAPTION>
PRINCIPAL
AMOUNT
<C> <S> <C>
CASH MANAGEMENT ACCOUNTS (6.9%)
$ 15,107,452 Dreyfus Cash Management 15,107,452
6,643,231 Federated Prime Obligations Fund 6,643,231
---------------
TOTAL CASH MANAGEMENT ACCOUNTS
(COST $21,750,683) 21,750,683
TOTAL INVESTMENTS (101.3%)
(COST $305,413,979) 320,638,729
OTHER ASSETS LESS LIABILITIES (-1.3%) (3,963,848)
---------------
TOTAL NET ASSETS (100.0%) $ 316,674,881
---------------
---------------
<CAPTION>
FACE/SHARE
AMOUNT
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER GLOBAL GROWTH PORTFOLIO
- -----------------------------------------------------------------
BELGIUM (2.6%)
COMMON STOCK
60 Electrabel SA
ENERGY $ 23,216
80 Groupe Bruxelles Lambert SA
FINANCE 15,065
160 KBC Bancassurance Holding
FINANCE 11,488
500 Kinepolis (a)
CONSUMER CYCLICAL 40,843
---------------
90,612
---------------
DENMARK (1.3%)
COMMON STOCK
200 Den Danske Bank Group
FINANCE 25,824
290 International Service System A/S
SERVICES 19,174
---------------
44,998
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER GLOBAL GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
FRANCE (14.3%)
COMMON STOCK
90 Accor SA
SERVICES $ 19,837
70 Air Liquide
MULTI-INDUSTRY 11,936
185 Alcatel Alsthom
CAPITAL EQUIPMENT 24,531
220 AXA
FINANCE 28,512
156 Bouygues SA
SERVICES 29,158
320 Canal Plus
SERVICES 73,747
335 Etablissements Economiques du Casino
Guichard--Perrachon SA
CONSUMER NON-DURABLES 31,897
340 Elf Aquitaine SA
ENERGY 42,506
484 France Telecom SA
SERVICES 33,711
140 Groupe Danone
CONSUMER NON-DURABLES 40,979
160 Lafarge SA
MATERIALS 15,122
70 Sanofi SA
CONSUMER NON-DURABLES 12,528
300 Suez Lyonnaise des Eaux
MULTI-INDUSTRY 59,405
190 Total SA, B Shares
ENERGY 23,619
230 Vivendi
MULTI-INDUSTRY 52,155
---------------
499,643
---------------
GERMANY (4.0%)
COMMON STOCK
280 DaimlerChrysler AG (a)
CONSUMER DURABLES 26,904
1,220 Hoechst AG
MATERIALS 52,529
450 Mannesmann AG
CAPITAL EQUIPMENT 48,838
180 Veba AG
MULTI-INDUSTRY 10,007
---------------
138,278
---------------
ITALY (4.4%)
COMMON STOCK
540 Assicurazioni Generali
FINANCE 20,224
14,150 Banca di Roma (a)
FINANCE 24,553
4,780 ENI SpA
ENERGY 29,737
</TABLE>
See Notes to Financial Statements SCHRODER CAPITAL FUNDS
123
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER GLOBAL GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
ITALY (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
4,150 Olivetti SpA (a)
CONSUMER DURABLES $ 10,907
3,830 Telecom Italia Mobile SpA
SERVICES 25,165
5,150 Telecom Italia SpA
SERVICES 41,852
---------------
152,438
---------------
JAPAN (8.1%)
COMMON STOCK
1,000 Bridgestone Corp.
MATERIALS 23,430
1,000 Credit Saison Co. Ltd.
FINANCE 22,860
1,000 Fuji Photo Film Co.
CAPITAL EQUIPMENT 37,423
1,000 Matsushita Electric Industrial Co. Ltd.
CAPITAL EQUIPMENT 16,108
2,000 Mitsui Fudosan Co. Ltd.
FINANCE 15,360
2 NTT Mobile Communications Network, Inc.
SERVICES 76,473
2,000 Sekisui House Ltd.
SERVICES 19,492
1,000 Takeda Chemical Industries
CONSUMER DURABLES 33,762
4,000 Teijin Ltd.
MATERIALS 14,351
5,000 Yasuda Fire & Marine Insurance Co. Ltd.
SERVICES 23,674
---------------
282,933
---------------
KOREA, REPUBLIC OF (1.0%)
COMMON STOCK
1,000 Daewoo Heavy Industries
CAPITAL EQUIPMENT 3,925
1,281 LG Electronics
CONSUMER DURABLES 12,697
356 Samsung Electronics Co.
CONSUMER DURABLES 19,029
---------------
35,651
---------------
NETHERLANDS (2.7%)
COMMON STOCK
1,044 Koninklijke Ahold NV
CONSUMER NON-DURABLES 36,304
360 Koninklijke (Royal) Philips Electronics
NV
CAPITAL EQUIPMENT 22,847
1,460 TNT Post Group NV
SERVICES 36,833
---------------
95,984
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER GLOBAL GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
SINGAPORE (1.0%)
COMMON STOCK
2,600 Development Bank of Singapore Ltd.(a)
FINANCE $ 19,733
1,397 Singapore Press Holdings Ltd.
SERVICES 14,842
---------------
34,575
---------------
SPAIN (1.5%)
COMMON STOCK
2,010 Endesa SA
ENERGY 52,597
---------------
SWEDEN (1.0%)
COMMON STOCK
520 Atlas Copco AB
CAPITAL EQUIPMENT 11,890
770 Telefonaktiebolaget LM Ericsson "B"
Shares
SERVICES 21,451
---------------
33,341
---------------
SWITZERLAND (7.0%)
COMMON STOCK
20 ABB AG
ENERGY 24,966
11 Nestle SA
CONSUMER NON-DURABLES 22,925
36 Novartis AG
CONSUMER DURABLES 67,783
3 Roche Holding AG
CONSUMER NON-DURABLES 35,358
17 Schweizerische Rueckversicherungs-
Gesellschaft
FINANCE 43,102
176 UBS AG
FINANCE 53,123
---------------
247,257
---------------
UNITED KINGDOM (14.9%)
COMMON STOCK
3,091 Airtours plc
SERVICES 21,175
2,120 Allied Domecq plc
CONSUMER NON-DURABLES 18,057
1,040 British American Tobacco plc
CONSUMER NON-DURABLES 9,541
6,895 British Energy plc
ENERGY 73,639
1,820 British Petroleum Co. plc
ENERGY 28,391
470 British Sky Broadcasting Group plc
SERVICES 3,887
1,860 British Telecommunications plc
SERVICES 25,499
3,590 Cable & Wireless plc
SERVICES 45,631
</TABLE>
See Notes to Financial Statements SCHRODER CAPITAL FUNDS
124
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER GLOBAL GROWTH PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
UNITED KINGDOM (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
5,730 Electrocomponents plc
CAPITAL EQUIPMENT $ 40,672
4,140 EMI Group plc
CONSUMER NON-DURABLES 24,671
3,570 Enterprise Oil plc
ENERGY 19,624
1,040 Glaxo Wellcome plc
CONSUMER NON-DURABLES 32,910
1,830 Lloyds TSB Group plc
FINANCE 25,450
9,635 LucasVarity plc
CAPITAL EQUIPMENT 33,082
2,220 Marks & Spencer plc
SERVICES 15,098
23,220 Pilkington plc
MATERIALS 24,914
12,644 Rolls-Royce plc (a)
CAPITAL EQUIPMENT 51,135
400 Standard Chartered Bank plc
FINANCE 4,252
595 Zeneca Group plc
CONSUMER DURABLES 24,751
---------------
522,379
---------------
UNITED STATES OF AMERICA (24.7%)
COMMON STOCK
770 Allied Signal, Inc.
CAPITAL EQUIPMENT 33,880
765 Allstate Corp.
SERVICES 31,174
700 American Home Products Corp.
CONSUMER NON-DURABLES 37,275
427 American International Group, Inc.
FINANCE 40,137
425 BankAmerica Corp.
FINANCE 27,736
300 Bristol-Myers Squibb Co.
CONSUMER NON-DURABLES 36,770
652 Cisco Systems, Inc. (a)
CONSUMER DURABLES 49,145
420 Computer Sciences Corp.(a)
SERVICES 23,993
430 Elan Corp. plc--ADR (a)
SERVICES 29,295
733 Federal Home Loan Mortgage Corp.
FINANCE 44,347
625 Gap, Inc.
CONSUMER DURABLES 45,975
380 General Electric Co.
CONSUMER DURABLES 34,390
490 McGraw-Hill Cos., Inc.
SERVICES 43,855
280 Merck & Co., Inc.
CONSUMER NON-DURABLES 43,365
<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 Pfizer, Inc.
CONSUMER NON-DURABLES $ 22,325
400 Procter & Gamble Co.
CONSUMER NON-DURABLES 35,050
873 Rite Aid Corp.
CONSUMER NON-DURABLES 40,485
725 Sun Microsystems, Inc. (a)
CONSUMER DURABLES 53,695
510 Textron, Inc.
CAPITAL EQUIPMENT 39,620
375 United Technologies Corp.
CAPITAL EQUIPMENT 40,195
545 Wal-Mart Stores, Inc.
CONSUMER NON-DURABLES 41,040
960 Wells Fargo & Co.
FINANCE 34,560
350 Xerox Corp.
CAPITAL EQUIPMENT 37,625
---------------
865,932
---------------
TOTAL INVESTMENTS (88.5%)
(COST $2,849,179) 3,096,618
OTHER ASSETS LESS LIABILITIES (11.5%) 404,059
---------------
TOTAL NET ASSETS (100.0%) $ 3,500,677
---------------
---------------
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
CONTRACTS TO SELL
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT UNDERLYING FACE APPRECIATION/
DATE CURRENCY UNITS AMOUNT OF VALUE (DEPRECIATION)
- --------- ------------- --------- --------------- -------------
<C> <S> <C> <C> <C>
British
12/17/98 Pounds 56,000 $92,405 $1,521
12/18/98 Japanese Yen 24,851,000 202,635 (13,260)
--------------- -------------
$295,040 $(11,739)
--------------- -------------
</TABLE>
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER EM CORE PORTFOLIO
- -----------------------------------------------------------------
ARGENTINA (1.9%)
COMMON STOCK
1,000 Banco Rio De La Plata ADR
FINANCE $ 11,750
2,300 Disco SA ADR (a)
CONSUMER NON-DURABLES 47,581
14,000 Perez Companc SA
ENERGY 73,095
2,900 Telecom Argentina ADR
SERVICES 88,450
---------------
220,876
---------------
</TABLE>
See Notes to Financial Statements SCHRODER CAPITAL FUNDS
125
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- -----------------------------------------------------------------
BOTSWANA (0.3%)
COMMON STOCK
26,700 Sechaba Breweries Ltd.
CONSUMER NON-DURABLES $ 33,896
---------------
BRAZIL (12.4%)
COMMON STOCK
9,069 Companhia Energetica de Minas Gerais--
CEMIG ADR
ENERGY 229,565
6,000 Companhia Paranaense de Energia--Copel
Stet.
ENERGY 58,500
868,000 Companhia Paulista de Forca e Luz-CPFL
(a)
ENERGY 82,030
6,000 Companhia Vale do Rio Doce
ENERGY 87,430
2,100 Companhia Vale do Rio Doce
ENERGY 30,600
2,400 Embratel Participacoes SA (a)
SERVICES 38,400
485,000 Telecomunicacaoes do Parana SA--Telepar
SERVICES 100,554
1,000 Telesp Participacoes SA ADR (a)
SERVICES 26,750
1,040,000 Telesp Tel Sao (a)
SERVICES 38,275
PREFERRED STOCK
5,890,000 Banco Bradesco
FINANCE 42,667
50,000 Banco Itau SA
FINANCE 27,893
130,000 Companhia Cervejaria Brahma
CONSUMER NON-DURABLES 70,142
7,600,000 Gerdau SA
MATERIALS 74,671
890,000 Petrol Brasileiro Petrobrasy
ENERGY 126,719
8,940,000 Tele Centro Sul Participacoes SA (a)
SERVICES 104,213
1,690,000 Telecomunicacoes de Sao Paulo SA--Telesp
SERVICES 287,060
---------------
1,425,469
---------------
CHILE (3.5%)
COMMON STOCK
5,700 Banco Santander Chile ADR (a)
FINANCE 72,675
5,200 Chilectra SA ADR
ENERGY 116,457
4,000 Distribucion y Servicio D&S SA ADR
SERVICES 55,500
2,000 Embotella Andina ADR
CONSUMER NON-DURABLES 28,250
1,000 Enersis SA--ADR
ENERGY 23,375
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
CHILE (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
900 Sociedad Quimica y Minera de Chile SA
ADR
MATERIALS $ 34,650
3,300 Quinenco SA ADR
MULTI-INDUSTRY 31,350
1,500 Vina Concha Y Toro ADR
CONSUMER NON-DURABLES 42,188
---------------
404,445
---------------
CHINA (0.9%)
CORPORATE BONDS
70,000 Huaneng Power International, Inc.,
1.75%, 5/21/04
ENERGY 65,975
128,000 Qingling Motors Ltd, 3.50%, 1/22/02
CAPITAL EQUIPMENT 40,960
---------------
106,935
---------------
CZECH REPUBLIC (1.0%)
COMMON STOCK
8,040 SPT Telecom AS (a)
SERVICES 118,630
---------------
EGYPT (2.1%)
COMMON STOCK
13,560 Commercial International Bank GDR
FINANCE 102,717
6,270 Oriental Weavers Co.
CONSUMER DURABLES 134,057
---------------
236,774
---------------
GREECE (7.4%)
COMMON STOCK
1,140 Alpha Credit Bank
FINANCE 108,483
7,440 Hellenic Bottling Co. SA
CONSUMER NON-DURABLES 199,288
6,919 Hellenic Telecommunication Organization
SA
SERVICES 173,137
3,100 Intracom SA
CAPITAL EQUIPMENT 159,518
764 National Bank of Greece SA
FINANCE 137,032
710 Panafon SA (a)
SERVICES 12,762
1,700 STET Hellas Telecommunications SA ADR
(a)
SERVICES 59,075
---------------
849,295
---------------
HONG KONG (3.6%)
COMMON STOCK
18,000 Cheung Kong Infrastructure Holdings
CAPITAL EQUIPMENT 43,123
159,000 China Resources Beijing Land (a)
FINANCE 43,123
</TABLE>
See Notes to Financial Statements SCHRODER CAPITAL FUNDS
126
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<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>
13,000 China Resources Enterprises Ltd.
MULTI-INDUSTRY $ 18,972
63,000 China Telecom (Hong Kong) Ltd. (a)
SERVICES 125,707
29,000 Ng Fung Hong Ltd.
SERVICES 25,843
194,000 Shenzhen Expressway Co. Ltd. (a)
SERVICES 46,352
FOREIGN CORPORATE BONDS
155,000 Cosco Treasury Co. Ltd., 3.50%, 3/13/03 107,918
---------------
411,038
---------------
HUNGARY (2.0%)
COMMON STOCK
340 Gedeon Richter RT
CONSUMER NON-DURABLES 13,133
4,600 Matav RT ADR
SERVICES 125,637
1,700 MOL Magyar Olajes-es Gazipari RT GDR
ENERGY 39,355
1,320 OTP Bank RT GDR
FINANCE 55,935
---------------
234,060
---------------
INDIA (6.0%)
COMMON STOCK
11,700 ITC Ltd. GDR
MULTI-INDUSTRY 224,055
10,500 Larsen & Toubro Ltd. GDR
MULTI-INDUSTRY 69,563
10,100 Mahanagar Telephone Nigam Ltd.
SERVICES 108,070
26,400 Reliance Industries Ltd. GDS
MATERIALS 134,310
11,700 State Bank of India
FINANCE 92,137
5,500 Videsh Sanchar Nigam Ltd. GDR
SERVICES 56,650
---------------
684,785
---------------
INDONESIA (1.7%)
COMMON STOCK
6,000 Gulf Indonesia Resources Ltd.(a)
ENERGY 52,500
13,000 PT Gudang Garam
CONSUMER NON-DURABLES 16,808
10,000 PT HM Sampoerna(a)
CONSUMER NON-DURABLES 6,599
182,000 PT Indofoods Sukses Makmur(a)
CONSUMER NON-DURABLES 90,080
23,000 PT Indosat ADR
SERVICES 33,145
---------------
199,132
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- -----------------------------------------------------------------
ISRAEL (5.0%)
COMMON STOCK
20,930 Bank Hapoalim Ltd.
FINANCE $ 40,146
51,060 Bank Leumi Le-Israel
FINANCE 70,775
17,240 Bezeq Israeli Telecommunication Corp.
Ltd.(a)
SERVICES 50,302
10,970 Blue Square-Israel Ltd.
SERVICES 133,697
2,000 Formula Systems Ltd. ADR (a)
SERVICES 50,000
5,400 Teva Pharmaceutical Industries Ltd. ADR
CONSUMER NON-DURABLES 234,900
---------------
579,820
---------------
KOREA, REPUBLIC OF (13.6%)
COMMON STOCK
5,900 Korea Electric Power Corp.
ENERGY 113,644
3,500 LG Chemical Ltd.
MULTI-INDUSTRY 29,494
17,608 LG Electronics
CONSUMER DURABLES 174,526
2,000 Pohang Iron & Steel Co. Ltd.
MATERIALS 113,559
2,510 SK Corp.
ENERGY 24,778
123 SK Telecom Co. Ltd.
SERVICES 87,659
6,226 Samsung Display Devices Co.
CONSUMER DURABLES 226,355
6,272 Samsung Electronics Co.
CONSUMER DURABLES 335,245
7,803 Samsung Heavy Industries (a)
CAPITAL EQUIPMENT 43,211
RIGHTS
3,637 Samsung Heavy Industries (a)
CAPITAL EQUIPMENT 4,028
168,634 Ssangyong Investment & Securities Co.
Ltd. (a)
FINANCE 412,787
---------------
1,565,286
---------------
LUXEMBOURG (0.4%)
COMMON STOCK
5,000 Quilmes Industrial SA ADR
CONSUMER NON-DURABLES 47,187
---------------
MAURITIUS (0.3%)
COMMON STOCK
39,800 State Bank of Mauritius Ltd. (a)
FINANCE 28,583
---------------
</TABLE>
See Notes to Financial Statements SCHRODER CAPITAL FUNDS
127
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- -----------------------------------------------------------------
MEXICO (8.9%)
COMMON STOCK
28,000 Cemex SA de CV
MATERIALS $ 67,836
64,800 Cifra SA de CV(a)
SERVICES 79,628
63,000 Controladora Comercial Mexicana SA de CV
SERVICES 40,282
56,000 Fomento Economico Mexica SA de CV
CONSUMER NON-DURABLES 129,516
22,500 Grupo Carso SA de CV
MULTI-INDUSTRY 71,257
32,100 Grupo Industrial Bimbo SA de CV
CONSUMER NON-DURABLES 50,670
17,400 Grupo Industrial Saltillo SA de CV
MATERIALS 46,240
9,100 Industrias Penoles SA
MATERIALS 27,910
21,500 Kimberly Clarke de Mexico SA de CV
SERVICES 57,780
7,800 Telefonos de Mexico SA ADR
SERVICES 363,188
13,000 Tubos de Acero de Mexico SA ADR
MATERIALS 91,812
---------------
1,026,119
---------------
PERU (2.3%)
COMMON STOCK
7,370 Credicorp Ltd.
FINANCE 81,070
2,900 Companhia Minas Buenaventura SA ADR
MATERIALS 36,794
44,000 Minsur SA
MATERIALS 73,251
5,100 Telefonica del Peru SA ADR
SERVICES 75,544
---------------
266,659
---------------
PHILIPPINES (1.9%)
COMMON STOCK
180,000 Ayala Corp.
MULTI-INDUSTRY 57,106
53,000 La Tondena Distillers, Inc.
CONSUMER NON-DURABLES 32,284
24,000 Manila Electric Co. B Shares
ENERGY 76,751
2,000 Metropolitan Bank & Trust Co.(a)
FINANCE 14,087
1,400 Philippine Long Distance Telephone Co.
SERVICES 36,599
---------------
216,827
---------------
POLAND (2.0%)
COMMON STOCK
20,250 Elektrim Spolka Akcyjna SA
MULTI-INDUSTRY 170,422
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
POLAND (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
14,060 Telekomunikacja Polska (a)
SERVICES $ 62,216
---------------
232,638
---------------
RUSSIA (0.6%)
COMMON STOCK
9,110 Surgutneftegaz ADR
ENERGY 32,663
7,690 Unified Energy Systems GDR
ENERGY 31,302
---------------
63,965
---------------
SOUTH AFRICA (8.4%)
COMMON STOCK
12,000 ABSA Group Ltd.
FINANCE 57,786
3,640 Anglo American Corp. of South Africa
Ltd.
FINANCE 116,685
2,500 Anglo American Industrial Corp. Ltd.
MULTI-INDUSTRY 44,376
20,137 Barlow Ltd.
MULTI-INDUSTRY 100,152
15,100 Ellerine Holdings Ltd.
CONSUMER DURABLES 35,826
77,400 First Rand Ltd.
FINANCE 95,220
29,000 Illovo Sugar Ltd.
CONSUMER NON-DURABLES 29,561
1 LA Retail Stores Ltd.
CONSUMER NON-DURABLES 1
115,000 Malbak Ltd.
MATERIALS 52,548
105,400 Metro Cash and Carry Ltd.
SERVICES 70,390
13,000 Rembrandt Group Ltd.
MULTI-INDUSTRY 84,649
14,900 Sappi Ltd.
MATERIALS 68,346
16,600 Sasol Ltd.
MULTI-INDUSTRY 64,620
4,495 South African Breweries, Ltd.
SERVICES 76,080
14,800 South African Druggists Ltd.
MATERIALS 72,829
---------------
969,069
---------------
TAIWAN (6.4%)
COMMON STOCK
9,000 Asustek Computer, Inc. (a)
CAPITAL EQUIPMENT 76,316
25,000 Cathay Life Insurance Co.
SERVICES 90,962
165,000 China Steel Corp.
MATERIALS 107,351
</TABLE>
See Notes to Financial Statements SCHRODER CAPITAL FUNDS
128
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONCLUDED) NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<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>
36,000 Nan Ya Plastics Corp.(a)
MATERIALS $ 53,504
30,000 Siliconware Precision Industries Co. (a)
CAPITAL EQUIPMENT 57,815
56,000 Taiwan Semiconductor Manufacturing Co.
(a)
CAPITAL EQUIPMENT 135,549
CORPORATE BONDS
185,000 Nan Ya Plastics Corp., 1.75%, 7/19/01
MATERIALS 210,438
---------------
731,935
---------------
THAILAND (1.9%)
COMMON STOCK
5,000 Advanced Info Service Public Co. Ltd.
(a)
SERVICES 29,086
19,000 Electricity Generating Public Co. Ltd.
(a)
ENERGY 50,526
6,000 PTT Exploration & Production Public Co.
Ltd.(a)
ENERGY 48,199
2,500 Siam Cement Public Co. Ltd. (a)
MATERIALS 52,355
15,000 Siam Makro Public Co. Ltd.
CONSUMER NON-DURABLES 31,163
10,000 TelecomAsia Corp. Public Co. Ltd. (a)
SERVICES 4,640
---------------
215,969
---------------
TURKEY (0.8%)
COMMON STOCK
1,528,375 Akbank T.A.S.
FINANCE 31,222
2,991,300 Dogan Yayin Holdings AS (a)
FINANCE 14,538
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- -----------------------------------------------------------------
</TABLE>
TURKEY (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
982,800 Netas Telekomunik (a)
CAPITAL EQUIPMENT $ 18,782
265,510 Vestel Elektronik Sanayi ve Ticanet AS
(a)
CONSUMER NON-DURABLES 25,807
---------------
90,349
---------------
ZIMBABWE (0.2%)
COMMON STOCK
1,000,000 Econet Wireless Holdings (a)
SERVICES 24,226
---------------
TOTAL INVESTMENTS (95.5%)
(COST $11,052,557) $ 10,983,967
OTHER ASSETS LESS LIABILITIES (4.5%) 519,604
---------------
TOTAL NET ASSETS (100.0%) $ 11,503,571
---------------
---------------
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
CONTRACTS TO SELL
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT UNDERLYING FACE APPRECIATION/
DATE CURRENCY UNITS AMOUNT OF VALUE (DEPRECIATION)
- --------- ----------------- --------- --------------- -------------
<C> <S> <C> <C> <C>
Brazilian
2/5/99 Cruzeiro 242,520 $(194,874) $(6,874)
2/22/99 Hong Kong Dollar 1,400,000 (180,600) (6,036)
12/15/98 Polish Zloty 151,400 (43,948) (3,948)
--------------- -------------
$(419,422) $(16,858)
--------------- -------------
</TABLE>
(a) Non-income producing security.
ADR--American Depositary Receipts
GDR--Global Depositary Receipts
GDS--Global Depositary Shares
See Notes to Financial Statements SCHRODER CAPITAL FUNDS
129
<PAGE>
Norwest Advantage Funds
733 Marquette Avenue
Minneapolis, MN 55479-0040
Shareholders Services
Minneapolis/St. Paul 1-612-667-8833
Elsewhere 1-800-338-1348
Norwest Investment Management, Inc.
Investment Adviser
Norwest Bank Minnesota, N.A.
Transfer Agent
Custodian
Forum Financial Services, Inc.
Manager and Distributor
(R) 1999 Norwest Advantage Funds
NW R SAR (1/99)
This report is for distribution only to shareholders and may be distributed
to others only if preceded or accompanied by current prospectuses of the
Norwest Advantage Funds.
