<PAGE>
[Graphic]
ANNUAL
REPORT
JUNE 1, 1999 - SEPTEMBER 30, 1999
- -----------------------------------
INSTITUTIONAL AND
RETAIL FUNDS
[logo]NORWEST
-------------------------------------------
ADVANTAGE FUNDS-Registered Trademark-
BALANCED FUNDS
- ----------------------------------
Strategic Income Fund
Moderate Balanced Fund
Growth Balanced Fund
Aggressive Balanced-Equity Fund
EQUITY FUNDS
- ----------------------------------
Index Fund
Income Equity Fund
Diversified Equity Fund
Growth Equity Fund
Large Company Growth Fund
Diversified Small Cap Fund
Small Cap Opportunities Fund
Small Company Growth Fund
International Fund
PERFORMA FUNDS
- ---------------------------------
Performa Disciplined Growth Fund
Performa Small Cap Value Fund
Not FDIC insured. - No bank guarantee. - May lose value.
<PAGE>
TABLE OF CONTENTS SEPTEMBER 30, 1999
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<TABLE>
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PAGE
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<S> <C>
MESSAGE TO OUR SHAREHOLDERS................................. 1
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA............ 2
Strategic Income Fund.............................. 2
Moderate Balanced Fund............................. 3
Growth Balanced Fund............................... 4
Aggressive Balanced-Equity Fund.................... 5
Index Fund......................................... 6
Income Equity Fund................................. 7
Diversified Equity Fund............................ 8
Growth Equity Fund................................. 9
Large Company Growth Fund.......................... 10
Diversified Small Cap Fund......................... 11
Small Cap Opportunities Fund....................... 12
Small Company Growth Fund.......................... 13
International Fund................................. 14
Performa Disciplined Growth Fund................... 15
Performa Small Cap Value Fund...................... 16
NORWEST ADVANTAGE FUNDS
Independent Auditors' Report................................ 17
Statements of Assets and Liabilities........................ 18
Statements of Operations.................................... 20
Statements of Changes in Net Assets......................... 26
Financial Highlights........................................ 32
Notes to Financial Highlights............................... 40
Notes to Financial Statements............................... 41
Schedules of Investments.................................... 47
Strategic Income Fund.............................. 47
Moderate Balanced Fund............................. 47
Growth Balanced Fund............................... 47
Aggressive Balanced-Equity Fund.................... 47
Index Fund......................................... 48
Income Equity Fund................................. 48
Diversified Equity Fund............................ 48
Growth Equity Fund................................. 48
Large Company Growth Fund.......................... 48
Diversified Small Cap Fund......................... 48
Small Cap Opportunities Fund....................... 48
Small Company Growth Fund.......................... 50
International Fund................................. 50
Notes to Schedules of Investments.................. 51
NORWEST ADVANTAGE PERFORMA FUNDS
Independent Auditors' Report................................ 54
Statements of Assets and Liabilities........................ 55
Statements of Operations.................................... 56
Statements of Changes in Net Assets......................... 57
Financial Highlights........................................ 58
Notes to Financial Statements............................... 59
Supplementary Information (Unaudited)....................... 61
Schedules of Investments.................................... 62
Performa Disciplined Growth Fund................... 62
Performa Small Cap Value Fund...................... 62
</TABLE>
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TABLE OF CONTENTS (CONCLUDED) SEPTEMBER 30, 1999
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<TABLE>
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PAGE
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<S> <C>
CORE TRUST (DELAWARE)
Independent Auditors' Report................................ 65
Statements of Assets and Liabilities........................ 66
Statements of Operations.................................... 68
Statements of Changes in Net Assets......................... 72
Financial Highlights........................................ 74
Notes to Financial Statements............................... 75
Schedules of Investments.................................... 80
Index Portfolio.................................... 80
Income Equity Portfolio............................ 86
Disciplined Growth Portfolio....................... 87
Large Company Growth Portfolio..................... 88
Small Cap Index Portfolio.......................... 89
Small Cap Value Portfolio.......................... 96
Small Company Value Portfolio...................... 97
Small Company Growth Portfolio..................... 99
International Portfolio............................ 101
International Equity Portfolio..................... 103
Notes to Schedules of Investments.................. 105
</TABLE>
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<PAGE>
A MESSAGE TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
November 1, 1999
To Our Shareholders:
We are pleased to present the 1999 Annual Report for
the Norwest Advantage Equity and Balanced Funds for the
four-month period ended September 30, 1999. This report
includes our eleven equity funds and four balanced funds.
This special report reflects a change in the Funds'
fiscal year-end to September 30 from May 31. We have made
this change to improve our reporting process, and it will
not impact the performance or objective of your
investment. Because of the new year-end, this report is
the second annual report we have sent you over the last
four months. Our discussions will focus on the most recent
period.
During the period, the Federal Reserve Board (the
"Fed") raised short-term interest rates. Despite the
interest rate increase during the period, the nation's
economy remained strong. Earnings for U.S. companies were
robust, we had a budget surplus, inflation and
unemployment remained low, and Americans seemed confident
about the future. We were also in the midst of a prolonged
bull market, which made U.S. capital markets attractive to
investors both at home and abroad. By the end of the
period, however, stocks suffered a setback, hurt by
worries over Fed tightening and higher interest rates
early in the period, and by a weaker dollar and rising
commodity prices in September 1999. By late September,
both the Dow Jones Industrial Average (the "DJIA") and the
S&P 500 Index were off by approximately 10% from their
summer peaks. While investors can expect some potential
volatility toward the end of the year due to Y2K concerns,
the Year 2000 is expected to have a minimal impact on the
U.S. because companies are prepared for the event.
The interest rate increase was good news for the bond
markets, which had discounted the Fed tightening in
response to a strong economy before the rate increase.
Although the DJIA reached record highs during the period,
stocks have not outperformed bonds since the
May-June period. The increase helped restore order to the
bond market, which had seen prices tumble and yields rise
above 6% on the benchmark 30-year U.S. Treasury bond. The
higher the bond yields move, the more likely investors
will be to switch from stocks to the safety of bonds.
As you read through this report and review the
performance of the Funds within your portfolio, we
encourage you to keep long-term goals in mind when making
investment decisions. We recommend that you continually
review your investment portfolio with your financial
consultant to determine an appropriate mix of investments
to meet your ongoing needs. If you have any questions or
need information, please contact us at 1-800-338-1348 or
612-667-8833, option 2.
Thank you for choosing Norwest Advantage Funds.
Sincerely,
/s/John Y. Keffer
------------------------------
John Y. Keffer
CHAIRMAN, NORWEST ADVANTAGE
FUNDS
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1
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
STRATEGIC INCOME FUND
This Fund, which has a 20 percent stock and 80 percent bond mix, posted a gain
of 0.40% for the four-month period ended September 30, 1999.
Although value stocks made a brief rally during the second quarter of 1999,
investors continued to move back to growth stocks for most of the four-month
period. Stock market investors experienced a tug-of-war between solid earnings
growth versus higher inflation and interest rate expectations. During the
period, the Federal Reserve Board raised short-term interest rates, which hurt
stocks in the utility, deep cyclical and financial sectors. Growing investor
uncertainty linked to possible further rate hikes hurt value stocks more than
growth-style stocks. Increasing concern over the impact of Y2K on stock
performance throughout the remainder of the year and into early 2000,
contributed to volatility in the markets.
During the period, interest rates moved higher for the third quarter in a row.
However, during September, the coupon received by bondholders was enough to
provide positive total returns for the bond segment of the Fund during the
period. High yield spreads and nominal yields currently exceed historical
averages, setting the stage for improved performance as Y2K concerns subside.
The diversified equity style, which makes up 20 percent of the Fund's assets,
returned -0.56% during the period. The portfolio is comprised of large cap
growth and value stocks, small company growth and value issues, and non-U.S.
stocks. The diversified bond style, which makes up 55 percent of the Fund,
returned 0.31%. This portfolio consists of high quality U.S. government and
agency bonds, corporate issues, as well as asset-backed and mortgage-backed
instruments. The stable income component, which emphasizes diversified,
high-quality, shorter maturity bonds, makes up 25 percent of the Fund's assets
and contributed 1.36% to the Fund.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
STRATEGIC INCOME FUND ("FUND") VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX") AND
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE INDEX ("LEHMAN 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. The result is compared with two broad-based securities market indices.
The Fund's total return includes operating expenses that reduce returns, while
the total returns of the Indices do not. Total return of the Fund 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. 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 SEPTEMBER 30, 1999
------------------------
S&P LEHMAN
I SHARES* INDEX INDEX
--------- ----- -----
<S> <C> <C> <C>
ONE YEAR 6.87% 27.79% 0.63%
FIVE YEAR 9.99% 25.01% 7.05%
TEN YEAR 8.84% 16.79% 7.60%
VALUE SEPTEMBER 30, 1999 $23,322 $47,261 $20,819
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
I SHARES S&P INDEX LEHMAN INDEX
<S> <C> <C> <C>
9/30/89 $10,000 $10,000 $10,000
10/31/89 $10,026 $9,768 $10,212
11/30/89 $10,130 $9,966 $10,309
12/31/89 $10,224 $10,205 $10,337
1/31/90 $10,060 $9,521 $10,271
2/28/90 $10,126 $9,644 $10,309
3/31/90 $10,227 $9,900 $10,322
4/30/90 $10,195 $9,653 $10,286
5/31/90 $10,565 $10,592 $10,512
6/30/90 $10,690 $10,521 $10,653
7/31/90 $10,720 $10,487 $10,801
8/31/90 $10,465 $9,540 $10,757
9/30/90 $10,368 $9,077 $10,840
10/31/90 $10,436 $9,038 $10,965
11/30/90 $10,663 $9,621 $11,132
12/31/90 $10,807 $9,889 $11,285
1/31/91 $11,045 $10,319 $11,399
2/28/91 $11,319 $11,056 $11,490
3/31/91 $11,473 $11,323 $11,568
4/30/91 $11,526 $11,350 $11,694
5/31/91 $11,722 $11,838 $11,765
6/30/91 $11,586 $11,296 $11,774
7/31/91 $11,819 $11,822 $11,904
8/31/91 $12,017 $12,102 $12,132
9/30/91 $12,090 $11,899 $12,340
10/31/91 $12,236 $12,058 $12,481
11/30/91 $12,190 $11,574 $12,625
12/31/91 $12,634 $12,896 $12,933
1/31/92 $12,615 $12,655 $12,815
2/29/92 $12,663 $12,819 $12,865
3/31/92 $12,592 $12,570 $12,815
4/30/92 $12,691 $12,939 $12,927
5/31/92 $12,828 $13,002 $13,128
6/30/92 $12,856 $12,809 $13,322
7/31/92 $12,941 $13,332 $13,587
8/31/92 $12,964 $13,059 $13,723
9/30/92 $13,101 $13,213 $13,910
10/31/92 $13,076 $13,258 $13,729
11/30/92 $13,273 $13,708 $13,681
12/31/92 $13,398 $13,877 $13,860
1/31/93 $13,440 $13,992 $14,130
2/28/93 $13,464 $14,183 $14,354
3/31/93 $13,654 $14,482 $14,411
4/30/93 $13,617 $14,132 $14,526
5/31/93 $13,760 $14,509 $14,494
6/30/93 $13,852 $14,552 $14,722
7/31/93 $13,915 $14,493 $14,757
8/31/93 $14,227 $15,042 $14,992
9/30/93 $14,293 $14,923 $15,055
10/31/93 $14,393 $15,232 $15,096
11/30/93 $14,258 $15,087 $15,011
12/31/93 $14,438 $15,270 $15,080
1/31/94 $14,667 $15,788 $15,247
2/28/94 $14,488 $15,360 $15,022
3/31/94 $14,234 $14,691 $14,774
4/30/94 $14,269 $14,880 $14,673
5/31/94 $14,288 $15,123 $14,684
6/30/94 $14,184 $14,753 $14,685
7/31/94 $14,391 $15,237 $14,897
8/31/94 $14,582 $15,861 $14,943
9/30/94 $14,487 $15,474 $14,805
10/31/94 $14,537 $15,820 $14,804
11/30/94 $14,419 $15,245 $14,737
12/31/94 $14,508 $15,470 $14,789
1/31/95 $14,643 $15,871 $15,039
2/28/95 $14,875 $16,489 $15,350
3/31/95 $15,045 $16,975 $15,438
4/30/95 $15,215 $17,474 $15,628
5/31/95 $15,546 $18,171 $16,100
6/30/95 $15,743 $18,593 $16,207
7/31/95 $15,931 $19,209 $16,209
8/31/95 $16,029 $19,258 $16,357
9/30/95 $16,271 $20,070 $16,474
10/31/95 $16,289 $19,998 $16,657
11/30/95 $16,539 $20,875 $16,875
12/31/95 $16,700 $21,277 $17,053
1/31/96 $16,870 $22,001 $17,199
2/29/96 $16,823 $22,205 $16,998
3/31/96 $16,880 $22,419 $16,911
4/30/96 $16,993 $22,749 $16,852
5/31/96 $17,126 $23,335 $16,839
6/30/96 $17,192 $23,424 $17,017
7/31/96 $16,984 $22,389 $17,068
8/31/96 $17,107 $22,862 $17,082
9/30/96 $17,475 $24,148 $17,319
10/31/96 $17,664 $24,814 $17,626
11/30/96 $18,108 $26,688 $17,859
12/31/96 $18,035 $26,159 $17,744
1/31/97 $18,289 $27,792 $17,813
2/28/97 $18,299 $28,011 $17,847
3/31/97 $18,005 $26,862 $17,724
4/30/97 $18,350 $28,464 $17,931
5/31/97 $18,767 $30,196 $18,080
6/30/97 $19,122 $31,548 $18,245
7/31/97 $19,834 $34,058 $18,615
8/31/97 $19,407 $32,151 $18,522
9/30/97 $19,915 $33,911 $18,737
10/31/97 $20,006 $32,779 $18,945
11/30/97 $20,200 $34,296 $18,987
12/31/97 $20,422 $34,884 $19,139
1/31/98 $20,685 $35,270 $19,389
2/28/98 $20,980 $37,812 $19,374
3/31/98 $21,232 $39,747 $19,436
4/30/98 $21,375 $40,146 $19,533
5/31/98 $21,418 $39,457 $19,676
6/30/98 $21,747 $41,059 $19,801
7/31/98 $21,670 $40,623 $19,871
8/31/98 $21,276 $34,757 $20,183
9/30/98 $21,824 $36,983 $20,689
10/31/98 $22,119 $39,989 $20,669
11/30/98 $22,546 $42,412 $20,667
12/31/98 $22,962 $44,854 $20,749
1/31/99 $23,241 $46,729 $20,863
2/28/99 $22,810 $45,277 $20,557
3/31/99 $23,089 $47,088 $20,711
4/30/99 $23,368 $48,912 $20,775
5/31/99 $23,229 $47,758 $20,615
6/30/99 $23,461 $50,407 $20,629
7/31/99 $23,368 $48,835 $20,611
8/31/99 $23,310 $48,591 $20,627
9/30/99 $23,322 $47,261 $20,819
</TABLE>
* 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 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 (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.
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2
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
MODERATE BALANCED FUND
This Fund, which has a 40 percent stock and 60 percent bond mix, gained 0.17%
during the four-month period ended September 30, 1999.
Although value stocks made a brief rally during the second quarter of 1999,
investors continued to rotate back to growth stocks for most of the four-month
period. Stock market investors are experiencing a tug-of-war between solid
earnings growth versus higher inflation and interest rate expectations. During
the period, the Federal Reserve Board raised short-term interest rates, which
hurt stocks in the utility, deep cyclical and financial sectors. Growing
investor uncertainty linked to possible further rate hikes hurt value stocks
more than growth-style stocks. Increasing concern over the impact of Y2K on
stock performance throughout the remainder of the year and into early 2000,
contributed to volatility in the markets. Finally, foreign currencies
strengthened relative to the U.S. Dollar, particularly the Japanese Yen,
reflecting better prospects for foreign economies and boosting returns on
international investments for U.S.-based investors.
During the period, interest rates moved higher for the third quarter in a row.
However, during September, the coupon received by bondholders was enough to
provide positive total returns for the bond segment of the Fund during the
period. High yield spreads and nominal yields currently exceed historical
averages, setting the stage for improved performance as Y2K concerns subside.
The diversified bond style, comprising 45 percent of the Fund, turned in 0.31%.
This portfolio consists of high quality U.S. government and agency bonds,
corporate issues, as well as asset-backed and mortgage-backed instruments. The
stable income style, at 15 percent of assets contributed 1.36% during the fiscal
year. This style invests in diversified, high quality, shorter-maturity bonds.
The diversified equity style, which is 40 percent of the Fund's assets, returned
- -0.56%. This portfolio is comprised of large cap growth and value stocks, small
company growth and value issues, and non-U.S. stocks.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
MODERATE BALANCED FUND ("FUND") VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX")
AND LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE INDEX ("LEHMAN 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. The result is compared with two broad-based securities market indices.
The Fund's total return includes operating expenses that reduce returns, while
the total returns of the Indices do not. Total return of the Fund 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. 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 SEPTEMBER 30, 1999
------------------------
S&P LEHMAN
I SHARES* INDEX INDEX
--------- ----- -----
<S> <C> <C> <C>
ONE YEAR 13.09% 27.79% 0.63%
FIVE YEAR 12.62% 25.01% 7.05%
TEN YEAR 10.48% 16.79% 7.60%
VALUE SEPTEMBER 30, 1999 $27,088 $47,261 $20,819
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
I SHARES S&P INDEX LEHMAN INDEX
<S> <C> <C> <C>
9/30/89 $10,000 $10,000 $10,000
10/31/89 $10,000 $9,768 $10,212
11/30/89 $10,126 $9,966 $10,309
12/31/89 $10,239 $10,205 $10,337
1/31/90 $9,974 $9,521 $10,271
2/28/90 $10,041 $9,644 $10,309
3/31/90 $10,174 $9,900 $10,322
4/30/90 $10,120 $9,653 $10,286
5/31/90 $10,639 $10,592 $10,512
6/30/90 $10,765 $10,521 $10,653
7/31/90 $10,767 $10,487 $10,801
8/31/90 $10,359 $9,540 $10,757
9/30/90 $10,151 $9,077 $10,840
10/31/90 $10,216 $9,038 $10,965
11/30/90 $10,502 $9,621 $11,132
12/31/90 $10,680 $9,889 $11,285
1/31/91 $10,991 $10,319 $11,399
2/28/91 $11,368 $11,056 $11,490
3/31/91 $11,547 $11,323 $11,568
4/30/91 $11,589 $11,350 $11,694
5/31/91 $11,851 $11,838 $11,765
6/30/91 $11,622 $11,296 $11,774
7/31/91 $11,933 $11,822 $11,904
8/31/91 $12,165 $12,102 $12,132
9/30/91 $12,219 $11,899 $12,340
10/31/91 $12,394 $12,058 $12,481
11/30/91 $12,286 $11,574 $12,625
12/31/91 $12,902 $12,896 $12,933
1/31/92 $12,863 $12,655 $12,815
2/29/92 $12,905 $12,819 $12,865
3/31/92 $12,784 $12,570 $12,815
4/30/92 $12,898 $12,939 $12,927
5/31/92 $13,051 $13,002 $13,128
6/30/92 $13,018 $12,809 $13,322
7/31/92 $13,163 $13,332 $13,587
8/31/92 $13,145 $13,059 $13,723
9/30/92 $13,288 $13,213 $13,910
10/31/92 $13,275 $13,258 $13,729
11/30/92 $13,541 $13,708 $13,681
12/31/92 $13,681 $13,877 $13,860
1/31/93 $13,719 $13,992 $14,130
2/28/93 $13,724 $14,183 $14,354
3/31/93 $13,978 $14,482 $14,411
4/30/93 $13,888 $14,132 $14,526
5/31/93 $14,094 $14,509 $14,494
6/30/93 $14,168 $14,552 $14,722
7/31/93 $14,239 $14,493 $14,757
8/31/93 $14,631 $15,042 $14,992
9/30/93 $14,699 $14,923 $15,055
10/31/93 $14,829 $15,232 $15,096
11/30/93 $14,649 $15,087 $15,011
12/31/93 $14,892 $15,270 $15,080
1/31/94 $15,188 $15,788 $15,247
2/28/94 $14,964 $15,360 $15,022
3/31/94 $14,588 $14,691 $14,774
4/30/94 $14,648 $14,880 $14,673
5/31/94 $14,691 $15,123 $14,684
6/30/94 $14,493 $14,753 $14,685
7/31/94 $14,776 $15,237 $14,897
8/31/94 $15,102 $15,861 $14,943
9/30/94 $14,953 $15,474 $14,805
10/31/94 $14,282 $15,820 $14,804
11/30/94 $14,834 $15,245 $14,737
12/31/94 $14,955 $15,470 $14,789
1/31/95 $15,077 $15,871 $15,039
2/28/95 $15,354 $16,489 $15,350
3/31/95 $15,580 $16,975 $15,438
4/30/95 $15,796 $17,474 $15,628
5/31/95 $16,169 $18,171 $16,100
6/30/95 $16,464 $18,593 $16,207
7/31/95 $16,802 $19,209 $16,209
8/31/95 $16,880 $19,258 $16,357
9/30/95 $17,218 $20,070 $16,474
10/31/95 $17,201 $19,998 $16,657
11/30/95 $17,530 $20,875 $16,875
12/31/95 $17,701 $21,277 $17,053
1/31/96 $17,946 $22,001 $17,199
2/29/96 $17,937 $22,205 $16,998
3/31/96 $18,019 $22,419 $16,911
4/30/96 $18,219 $22,749 $16,852
5/31/96 $18,409 $23,335 $16,839
6/30/96 $18,464 $23,424 $17,017
7/31/96 $18,101 $22,389 $17,068
8/31/96 $18,273 $22,862 $17,082
9/30/96 $18,791 $24,148 $17,319
10/31/96 $18,981 $24,814 $17,626
11/30/96 $19,599 $26,688 $17,859
12/31/96 $19,490 $26,159 $17,744
1/31/97 $19,929 $27,792 $17,813
2/28/97 $19,948 $28,011 $17,847
3/31/97 $19,518 $26,862 $17,724
4/30/97 $19,996 $28,464 $17,931
5/31/97 $20,627 $30,196 $18,080
6/30/97 $21,142 $31,548 $18,245
7/31/97 $22,098 $34,058 $18,615
8/31/97 $21,458 $32,151 $18,522
9/30/97 $22,184 $33,911 $18,737
10/31/97 $22,031 $32,779 $18,945
11/30/97 $22,327 $34,296 $18,987
12/31/97 $22,608 $34,884 $19,139
1/31/98 $22,903 $35,270 $19,389
2/28/98 $23,554 $37,812 $19,374
3/31/98 $24,027 $39,747 $19,436
4/30/98 $24,237 $40,146 $19,533
5/31/98 $24,142 $39,457 $19,676
6/30/98 $24,626 $41,059 $19,801
7/31/98 $24,436 $40,623 $19,871
8/31/98 $23,186 $34,757 $20,183
9/30/98 $23,953 $36,983 $20,689
10/31/98 $24,731 $39,989 $20,669
11/30/98 $25,550 $42,412 $20,667
12/31/98 $26,394 $44,854 $20,749
1/31/99 $26,898 $46,729 $20,863
2/28/99 $26,293 $45,277 $20,557
3/31/99 $26,786 $47,088 $20,711
4/30/99 $27,301 $48,912 $20,775
5/31/99 $27,044 $47,758 $20,615
6/30/99 $27,615 $50,407 $20,629
7/31/99 $27,380 $48,835 $20,611
8/31/99 $27,257 $48,591 $20,627
9/30/99 $27,088 $47,261 $20,819
</TABLE>
* 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 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 (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.
[LOGO]
3
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
GROWTH BALANCED FUND
The assets of the Fund consist of a 67 percent stock and 33 percent bond mix,
and experienced a return of -0.23% during the four-month period ended
September 30, 1999.
Although value stocks made a brief rally during the second quarter of 1999,
investors continued to move back to growth stocks for most of the four-month
period. Stock market investors are experiencing a tug-of-war between solid
earnings growth versus higher inflation and interest rate expectations. During
the period, the Federal Reserve Board raised short-term interest rates, which
hurt stocks in the utility, deep cyclical and financial sectors. Growing
investor uncertainty linked to possible further rate hikes hurt value stocks
more than growth-style stocks. Increasing concern over the impact of Y2K on
stock performance throughout the remainder of the year and into early 2000,
contributed to volatility in the markets. Finally, foreign currencies
strengthened relative to the U.S. Dollar, reflecting better prospects for
foreign economies and boosting returns on international investments for
U.S.-based investors.
During the period, interest rates moved higher for the third quarter in a row.
However, during September, the coupon received by bondholders was enough to
provide positive total returns for the bond segment of the Fund during the
period. High yield spreads and nominal yields currently exceed historical
averages, setting the stage for improved performance as Y2K concerns subside.
The diversified equity style, which makes up 65 percent of the Fund's assets,
returned -0.56% during the fiscal year. This component is comprised of large cap
growth and value stocks, small company growth and value issues and non-U.S.
stocks. The diversified bond style, comprising 35 percent of assets, returned
0.31%. 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
SEPTEMBER 30, 1999. 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 OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
GROWTH BALANCED FUND ("FUND") VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX") AND
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE INDEX ("LEHMAN 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. The result is compared with two broad-based securities market indices.
The Fund's total return includes operating expenses that reduce returns, while
the total returns of the Indices do not. Total return of the Fund 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. 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 SEPTEMBER 30, 1999
----------------------------------------------------
S&P LEHMAN
A SHARES*+ B SHARES**+ C SHARES**+ I SHARES***+ INDEX INDEX
---------- ----------- ----------- ------------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
ONE YEAR 13.65% 14.74% 18.94% 20.85% 27.79% 0.63%
FIVE YEAR 15.07% 15.36% 15.63% 16.49% 25.01% 7.05%
TEN YEAR 12.06% 11.89% 11.91% 12.75% 16.79% 7.60%
VALUE SEPTEMBER 30, 1999 $31,221 $30,768 $30,821 $33,198 $47,261 $20,819
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
A SHARES I SHARES S&P INDEX LEHMAN INDEX
<S> <C> <C> <C> <C>
09/30/89 $9,425 $10,000 $10,000 $10,000
10/31/89 $9,295 $9,862 $9,768 $10,212
11/30/89 $9,451 $10,027 $9,966 $10,309
12/31/89 $9,584 $10,169 $10,205 $10,337
01/31/90 $9,186 $9,746 $9,521 $10,271
02/28/90 $9,251 $9,814 $9,644 $10,309
03/31/90 $9,425 $10,000 $9,900 $10,322
04/30/90 $9,339 $9,909 $9,653 $10,286
05/31/90 $10,047 $10,659 $10,592 $10,512
06/30/90 $10,166 $10,785 $10,521 $10,653
07/31/90 $10,127 $10,745 $10,487 $10,801
08/31/90 $9,509 $10,089 $9,540 $10,757
09/30/90 $9,147 $9,704 $9,077 $10,840
10/31/90 $9,204 $9,764 $9,038 $10,965
11/30/90 $9,560 $10,143 $9,621 $11,132
12/31/90 $9,771 $10,367 $9,889 $11,285
01/31/91 $10,191 $10,812 $10,319 $11,399
02/28/91 $10,718 $11,372 $11,056 $11,490
03/31/91 $10,929 $11,596 $11,323 $11,568
04/30/91 $10,944 $11,611 $11,350 $11,694
05/31/91 $11,307 $11,997 $11,838 $11,765
06/30/91 $10,928 $11,594 $11,296 $11,774
07/31/91 $11,351 $12,043 $11,822 $11,904
08/31/91 $11,617 $12,325 $12,102 $12,132
09/30/91 $11,626 $12,335 $11,899 $12,340
10/31/91 $11,840 $12,562 $12,058 $12,481
11/30/91 $11,617 $12,325 $11,574 $12,625
12/31/91 $12,499 $13,261 $12,896 $12,933
01/31/92 $12,429 $13,186 $12,655 $12,815
02/29/92 $12,459 $13,219 $12,819 $12,865
03/31/92 $12,251 $12,998 $12,570 $12,815
04/30/92 $12,377 $13,132 $12,939 $12,927
05/31/92 $12,540 $13,304 $13,002 $13,128
06/30/92 $12,377 $13,131 $12,809 $13,322
07/31/92 $12,630 $13,400 $13,332 $13,587
08/31/92 $12,519 $13,283 $13,059 $13,723
09/30/92 $12,653 $13,425 $13,213 $13,910
10/31/92 $12,673 $13,446 $13,258 $13,729
11/30/92 $13,054 $13,850 $13,708 $13,681
12/31/92 $13,197 $14,001 $13,877 $13,860
01/31/93 $13,223 $14,030 $13,992 $14,130
02/28/93 $13,179 $13,983 $14,183 $14,354
03/31/93 $13,527 $14,352 $14,482 $14,411
04/30/93 $13,335 $14,148 $14,132 $14,526
05/31/93 $13,643 $14,475 $14,509 $14,494
06/30/93 $13,660 $14,493 $14,552 $14,722
07/31/93 $13,736 $14,573 $14,493 $14,757
08/31/93 $14,239 $15,108 $15,042 $14,992
09/30/93 $14,298 $15,171 $14,923 $15,055
10/31/93 $14,472 $15,354 $15,232 $15,096
11/30/93 $14,239 $15,100 $15,087 $15,011
12/31/93 $14,550 $15,438 $15,270 $15,080
01/31/94 $14,923 $15,833 $15,788 $15,247
02/28/94 $14,646 $15,540 $15,360 $15,022
03/31/94 $14,134 $14,997 $14,691 $14,774
04/30/94 $14,223 $15,092 $14,880 $14,673
05/31/94 $14,288 $15,159 $15,123 $14,684
06/30/94 $13,984 $14,837 $14,753 $14,685
07/31/94 $14,335 $15,210 $15,237 $14,897
08/31/94 $14,800 $15,703 $15,861 $14,943
09/30/94 $14,588 $15,478 $15,474 $14,805
10/31/94 $14,709 $15,606 $15,820 $14,804
11/30/94 $14,423 $15,303 $15,245 $14,737
12/31/94 $14,529 $15,416 $15,470 $14,789
01/31/95 $14,652 $15,545 $15,871 $15,039
02/28/95 $14,993 $15,907 $16,489 $15,350
03/31/95 $15,294 $16,227 $16,975 $15,438
04/30/95 $15,562 $16,512 $17,474 $15,628
05/31/95 $16,002 $16,978 $18,171 $16,100
06/30/95 $16,376 $17,375 $18,593 $16,207
07/31/95 $16,864 $17,893 $19,209 $16,209
08/31/95 $16,937 $17,970 $19,258 $16,357
09/30/95 $17,434 $18,497 $20,070 $16,474
10/31/95 $17,287 $18,342 $19,998 $16,657
11/30/95 $17,734 $18,816 $20,875 $16,875
12/31/95 $17,907 $18,999 $21,277 $17,053
01/31/96 $18,285 $19,400 $22,001 $17,199
02/29/96 $18,428 $19,551 $22,205 $16,998
03/31/96 $18,562 $19,694 $22,419 $16,911
04/30/96 $18,879 $20,032 $22,749 $16,852
05/31/96 $19,166 $20,335 $23,335 $16,839
06/30/96 $19,175 $20,344 $23,424 $17,017
07/31/96 $18,562 $19,694 $22,389 $17,068
08/31/96 $18,814 $19,961 $22,862 $17,082
09/30/96 $19,561 $20,754 $24,148 $17,319
10/31/96 $19,698 $20,941 $24,814 $17,626
11/30/96 $20,639 $21,894 $26,688 $17,859
12/31/96 $20,459 $21,707 $26,159 $17,744
01/31/97 $21,140 $22,429 $27,792 $17,813
02/28/97 $21,140 $22,429 $28,011 $17,847
03/31/97 $20,476 $21,726 $26,862 $17,724
04/30/97 $21,158 $22,448 $28,464 $17,931
05/31/97 $22,198 $23,551 $30,196 $18,080
06/30/97 $22,995 $24,397 $31,548 $18,245
07/31/97 $24,303 $25,786 $34,058 $18,615
08/31/97 $23,344 $24,768 $32,151 $18,522
09/30/97 $24,393 $25,881 $33,911 $18,737
10/31/97 $23,918 $25,377 $32,779 $18,945
11/30/97 $24,350 $25,862 $34,296 $18,987
12/31/97 $24,709 $26,216 $34,884 $19,139
01/31/98 $25,036 $26,562 $35,270 $19,389
02/28/98 $26,149 $27,744 $37,812 $19,374
03/31/98 $26,928 $28,570 $39,747 $19,436
04/30/98 $27,225 $28,885 $40,146 $19,533
05/31/98 $26,947 $28,590 $39,457 $19,676
06/30/98 $27,638 $29,323 $41,059 $19,801
07/31/98 $27,302 $28,967 $40,623 $19,871
08/31/98 $24,863 $26,379 $34,757 $20,183
09/30/98 $25,891 $27,469 $36,983 $20,689
10/31/98 $27,420 $29,089 $39,989 $20,669
11/30/98 $28,853 $30,617 $42,412 $20,667
12/31/98 $30,237 $32,100 $44,854 $20,749
01/31/99 $31,001 $32,918 $46,729 $20,863
02/28/99 $30,170 $32,047 $45,277 $20,557
03/31/99 $30,925 $32,843 $47,088 $20,711
04/30/99 $31,718 $33,692 $48,912 $20,775
05/31/99 $31,307 $33,273 $47,758 $20,615
06/30/99 $32,434 $34,467 $50,407 $20,629
07/31/99 $31,956 $33,961 $48,835 $20,611
08/31/99 $31,698 $33,703 $48,591 $20,627
09/30/99 $31,221 $33,198 $47,261 $20,819
</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. Performance shown for Class A Shares for the
periods prior to November 11, 1994 reflects performance of the shares of the
predecessor collective investment fund (see footnote + below) 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).
** 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 periods prior to November 11, 1994 reflects performance of the shares of
the predecessor collective investment fund (see footnote + below) adjusted to
reflect Class B and Class C Share expenses, respectively, including any
applicable sales load (without giving effect to any fee waivers or expense
reimbursements).
*** Performance shown for Class I Shares for the periods prior to November 11,
1994 reflects performance of the shares of the predecessor collective investment
fund (see footnote + below) adjusted to reflect the Fund's 1994 estimate of its
expense ratio for the first year of operations as a mutual fund (without giving
effect to any fee waivers or expense 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 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 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.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF CLASS A AND I SHARES.
PERFORMANCE OF OTHER CLASSES WILL DIFFER.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.75% SALES CHARGE FOR CLASS
A SHARES, THE MAXIMUM 5.00% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES AND THE MAXIMUM 1.00% DEFERRED SALES CHARGE
(DECLINING TO ZERO AFTER ONE YEAR) FOR CLASS C SHARES.
[LOGO]
4
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
AGGRESSIVE BALANCED-EQUITY FUND
Assets of the Fund consist of an 80 percent stock and 20 percent bond mix.
During the four-month period ended September 30, 1999, the Fund returned -0.31%.
Although value stocks made a brief rally during the second quarter of 1999,
investors continued to move back to growth stocks for most of the four-month
period. Stock market investors are experiencing a tug-of-war between solid
earnings growth versus higher inflation and interest rate expectations. During
the period, the Federal Reserve Board raised short-term interest rates, which
hurt stocks in the utility, deep cyclical and financial sectors. Growing
investor uncertainty linked to possible further rate hikes hurt value stocks
more than growth-style stocks. Increasing concern over the impact of Y2K on
stock performance throughout the remainder of the year and into early 2000,
contributed to volatility in the markets. Finally, foreign currencies
strengthened relative to the U.S. Dollar, particularly the Japanese Yen,
reflecting better prospects for foreign economies and boosting returns on
international investments for U.S.-based investors.
During the period, interest rates moved higher for the third quarter in a row.
However, during September, the coupon received by bondholders was enough to
provide positive total returns for the bond segment of the Fund during the
period. High yield spreads and nominal yields currently exceed historical
averages, setting the stage for improved performance as Y2K concerns subside.
The diversified equity component, which makes up 80 percent of the Fund's
assets, is comprised of large cap growth and value stocks, small company growth
and value issues, and non-U.S. stocks. The diversified bond style, comprising 20
percent of assets, 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
SEPTEMBER 30, 1999. 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.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
AGGRESSIVE BALANCED-EQUITY FUND ("FUND") VS. STANDARD & POOR'S 500 INDEX ("S&P
INDEX")
AND LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE INDEX ("LEHMAN INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, since inception. The result is
compared with two broad-based securities market indices. The Fund's total return
includes operating expenses that reduce returns, while the total returns of the
Indices do not. Total return of the Fund 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. 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 SEPTEMBER 30, 1999
------------------------
S&P LEHMAN
I SHARES INDEX INDEX
-------- ----- -----
<S> <C> <C> <C>
ONE YEAR 25.46% 27.79% 0.63%
SINCE INCEPTION 15.45% 19.12% 5.16%
INCEPTION DATE 12/2/97 11/30/97 11/30/97
VALUE SEPTEMBER 30, 1999 $13,002 $13,780 $10,965
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
I SHARES S&P INDEX LEHMAN INDEX
<S> <C> <C> <C>
11/30/97 $10,000 $10,000 $10,000
12/31/97 $10,013 $10,172 $10,080
1/31/98 $10,144 $10,284 $10,212
2/28/98 $10,704 $11,025 $10,204
3/31/98 $11,085 $11,589 $10,237
4/30/98 $11,225 $11,706 $10,288
5/31/98 $11,055 $11,505 $10,363
6/30/98 $11,375 $11,972 $10,429
7/31/98 $11,205 $11,845 $10,466
8/31/98 $9,923 $10,134 $10,630
9/30/98 $10,364 $10,784 $10,897
10/31/98 $11,135 $11,660 $10,886
11/30/98 $11,766 $12,367 $10,885
12/31/98 $12,438 $13,079 $10,928
1/31/99 $12,791 $13,625 $10,988
2/28/99 $12,438 $13,202 $10,827
3/31/99 $12,821 $13,730 $10,908
4/30/99 $13,234 $14,262 $10,942
5/31/99 $13,043 $13,925 $10,858
6/30/99 $13,608 $14,698 $10,865
7/31/99 $13,376 $14,239 $10,855
8/31/99 $13,255 $14,168 $10,864
9/30/99 $13,002 $13,780 $10,965
</TABLE>
[LOGO]
5
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
INDEX FUND
During the four-month period ended September 30, 1999, the Index Fund returned
- -1.00%.
The Fund's performance was positively affected by the technology sector during
the period. The two biggest sectors in the S&P 500, technology and financials,
were on opposites ends of the spectrum with returns of 16.38% and -11.73%,
respectively. Many of the above-average performers in the second quarter gave up
much of their return in the third quarter, with consumer cyclicals down -10.49%
and basic materials down -2.74%. Finally, increasing concern over the impact of
Y2K on stock performance throughout the remainder of the year and into early
2000, contributed to volatility in the markets as investors tried to anticipate
where they should be positioned for the turn of the century.
We expect interest rate pressures to persist due to ongoing signs of a strong
economy. The primary impact of higher short-term rates should be to slow
corporate earnings growth, which may limit the rise in the stock market.
Ironically, the present robust economic environment may be very constructive for
a value strategy. Unfortunately, Y2K-related costs and other company specific
factors (slower revenue growth or higher costs) affecting industries within the
value universe have depressed returns.
The objective of the Index Fund is to replicate the return of the S&P 500 Index
(the "Index") with a minimum of tracking error. To achieve this goal, the Fund
is invested in all 500 securities that make up the Index, and in the same
weights as the Index. A small portion of the Fund's assets are kept in cash in
order to handle shareholder transactions without being forced to trade stocks to
provide liquidity. This minimizes transaction costs. However, on the down side,
this can hurt performance. As compensation, we reduce the drag of cash by
hedging our cash position by investing in S&P 500 futures contracts, giving us,
in effect, a 100% equity position. The result is a fund that very closely tracks
the performance of the Index.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
INDEX FUND ("FUND") VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods. The result is compared with a broad-based securities market index. The
Fund's total return includes operating expenses that reduce returns, while the
total return of the Index does not. Total return of the Fund 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. 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 SEPTEMBER 30, 1999
------------------------
S&P
I SHARES* INDEX
--------- -----
<S> <C> <C>
ONE YEAR 27.50% 27.79%
FIVE YEAR 24.39% 25.01%
TEN YEAR 16.27% 16.79%
VALUE SEPTEMBER 30, 1999 $45,167 $47,261
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
I SHARES S&P INDEX
<S> <C> <C>
9/30/89 $10,000 $10,000
10/31/89 $9,736 $9,768
11/30/89 $9,950 $9,966
12/31/89 $10,176 $10,205
1/31/90 $9,486 $9,521
2/28/90 $9,606 $9,644
3/31/90 $9,864 $9,900
4/30/90 $9,617 $9,653
5/31/90 $10,533 $10,592
6/30/90 $10,451 $10,521
7/31/90 $10,400 $10,487
8/31/90 $9,469 $9,540
9/30/90 $9,002 $9,077
10/31/90 $8,968 $9,038
11/30/90 $9,547 $9,621
12/31/90 $9,799 $9,889
1/31/91 $10,280 $10,319
2/28/91 $11,012 $11,056
3/31/91 $11,284 $11,323
4/30/91 $11,316 $11,350
5/31/91 $11,792 $11,838
6/30/91 $11,243 $11,296
7/31/91 $11,754 $11,822
8/31/91 $12,004 $12,102
9/30/91 $11,799 $11,899
10/31/91 $11,945 $12,058
11/30/91 $11,450 $11,574
12/31/91 $12,739 $12,896
1/31/92 $12,530 $12,655
2/29/92 $12,701 $12,819
3/31/92 $12,453 $12,570
4/30/92 $12,809 $12,939
5/31/92 $12,886 $13,002
6/30/92 $12,709 $12,809
7/31/92 $13,226 $13,332
8/31/92 $12,947 $13,059
9/30/92 $13,080 $13,213
10/31/92 $13,128 $13,258
11/30/92 $13,564 $13,708
12/31/92 $13,729 $13,877
1/31/93 $13,842 $13,992
2/28/93 $14,034 $14,183
3/31/93 $14,326 $14,482
4/30/93 $13,936 $14,132
5/31/93 $14,325 $14,509
6/30/93 $14,357 $14,552
7/31/93 $14,308 $14,493
8/31/93 $14,816 $15,042
9/30/93 $14,704 $14,923
10/31/93 $14,956 $15,232
11/30/93 $14,797 $15,087
12/31/93 $14,958 $15,270
1/31/94 $15,462 $15,788
2/28/94 $15,080 $15,360
3/31/94 $14,425 $14,691
4/30/94 $14,599 $14,880
5/31/94 $14,809 $15,123
6/30/94 $14,459 $14,753
7/31/94 $14,931 $15,237
8/31/94 $15,542 $15,861
9/30/94 $15,166 $15,474
10/31/94 $15,483 $15,820
11/30/94 $14,914 $15,245
12/31/94 $15,124 $15,470
1/31/95 $15,509 $15,871
2/28/95 $16,096 $16,489
3/31/95 $16,537 $16,975
4/30/95 $17,006 $17,474
5/31/95 $17,663 $18,171
6/30/95 $18,076 $18,593
7/31/95 $18,650 $19,209
8/31/95 $18,691 $19,258
9/30/95 $19,447 $20,070
10/31/95 $19,356 $19,998
11/30/95 $20,195 $20,875
12/31/95 $20,568 $21,277
1/31/96 $21,269 $22,001
2/29/96 $21,440 $22,205
3/31/96 $21,647 $22,419
4/30/96 $21,955 $22,749
5/31/96 $22,505 $23,335
6/30/96 $22,598 $23,424
7/31/96 $21,597 $22,389
8/31/96 $22,033 $22,862
9/30/96 $23,262 $24,148
10/31/96 $23,898 $24,814
11/30/96 $25,699 $26,688
12/31/96 $25,148 $26,159
1/31/97 $26,736 $27,792
2/28/97 $26,942 $28,011
3/31/97 $25,839 $26,862
4/30/97 $27,376 $28,464
5/31/97 $29,037 $30,196
6/30/97 $30,361 $31,548
7/31/97 $32,736 $34,058
8/31/97 $30,912 $32,151
9/30/97 $32,589 $33,911
10/31/97 $31,493 $32,779
11/30/97 $32,934 $34,296
12/31/97 $33,492 $34,884
1/31/98 $33,859 $35,270
2/28/98 $36,292 $37,812
3/31/98 $38,136 $39,747
4/30/98 $38,520 $40,146
5/31/98 $37,843 $39,457
6/30/98 $39,377 $41,059
7/31/98 $38,953 $40,623
8/31/98 $33,304 $34,757
9/30/98 $35,426 $36,983
10/31/98 $38,300 $39,989
11/30/98 $40,602 $42,412
12/31/98 $42,979 $44,854
1/31/99 $44,693 $46,729
2/28/99 $43,303 $45,277
3/31/99 $45,026 $47,088
4/30/99 $46,748 $48,912
5/31/99 $45,625 $47,758
6/30/99 $48,155 $50,407
7/31/99 $46,657 $48,835
8/31/99 $46,438 $48,591
9/30/99 $45,167 $47,261
</TABLE>
* 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 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 (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.
[LOGO]
6
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
INCOME EQUITY FUND
During the four-month period ended September 30, 1999, the Fund returned -4.16%.
The period was volatile for the Fund, and included record highs for several
indices and a 10% correction for the market in general, as measured by the S&P
500 Index. The Fund's performance was adversely affected by a weakness in the
highly competitive retail sector, as well as company-specific news such as the
American Home Products diet drug litigation. Positive performance focused around
the capital goods sector, and by the advances in GTE, Aegon and Lucent
Technologies. The period did not favor value or large cap stocks, but rather
growth and technology stocks.
The continued competitive environment in the retail sector hampered performance,
as did the market's bias toward growth versus value. The recent focus on various
undervalued companies that resulted in mergers benefited the Fund's performance.
Other holdings involved in recent merger activity included GTE, Bell Atlantic,
Transamerica, Aegon, Honeywell, Allied Signal and Consolidated Natural Gas. All
had positive impacts on the Fund's performance during the period. The Fund's
solid fundamentals, including a better gross dividend, better valuation and
better long-term growth prospects, are expected to potentially benefit
investors.
The Fund seeks to identify companies with consistent historical growth and
above-average return potential based on current market valuations, including
business slowdowns, industry pressures and management issues. A continued focus
on above-average dividend yield and better valuation may help moderate
volatility in a market downturn.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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 OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
INCOME EQUITY FUND ("FUND") VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods. The result is compared with a broad-based securities market index. 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.
Total return of the Fund 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. 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 SEPTEMBER 30, 1999
----------------------------------------------------
A SHARES*+ B SHARES**+ C SHARES**+ I SHARES***+ S&P INDEX
---------- ----------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C>
ONE YEAR 13.83% 14.88% 18.75% 20.75% 27.79%
FIVE YEAR 19.89% 20.23% 20.40% 21.31% 25.01%
TEN YEAR 14.68% 14.51% 14.50% 15.36% 16.79%
VALUE SEPTEMBER 30, 1999 $39,356 $38,779 $38,720 $41,748 $47,261
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
A SHARES I SHARES S&P INDEX
<S> <C> <C> <C>
9/30/89 $9,425 $10,000 $10,000
10/31/89 $9,296 $9,863 $9,768
11/30/89 $9,487 $10,066 $9,966
12/31/89 $9,683 $10,274 $10,205
1/31/90 $9,095 $9,650 $9,521
2/28/90 $9,135 $9,692 $9,644
3/31/90 $9,411 $9,985 $9,900
4/30/90 $9,265 $9,830 $9,653
5/31/90 $10,104 $10,721 $10,592
6/30/90 $10,176 $10,797 $10,521
7/31/90 $10,212 $10,835 $10,487
8/31/90 $9,426 $10,001 $9,540
9/30/90 $9,084 $9,638 $9,077
10/31/90 $9,087 $9,642 $9,038
11/30/90 $9,545 $10,127 $9,621
12/31/90 $9,810 $10,408 $9,889
1/31/91 $10,205 $10,828 $10,319
2/28/91 $10,944 $11,612 $11,056
3/31/91 $11,197 $11,880 $11,323
4/30/91 $11,231 $11,917 $11,350
5/31/91 $11,680 $12,393 $11,838
6/30/91 $11,139 $11,818 $11,296
7/31/91 $11,521 $12,224 $11,822
8/31/91 $11,844 $12,567 $12,102
9/30/91 $11,689 $12,403 $11,899
10/31/91 $11,806 $12,526 $12,058
11/30/91 $11,389 $12,084 $11,574
12/31/91 $12,631 $13,401 $12,896
1/31/92 $12,290 $13,040 $12,655
2/29/92 $12,379 $13,134 $12,819
3/31/92 $12,324 $13,076 $12,570
4/30/92 $12,723 $13,499 $12,939
5/31/92 $12,725 $13,501 $13,002
6/30/92 $12,528 $13,293 $12,809
7/31/92 $13,136 $13,938 $13,332
8/31/92 $12,837 $13,620 $13,059
9/30/92 $12,945 $13,735 $13,213
10/31/92 $12,876 $13,662 $13,258
11/30/92 $13,244 $14,052 $13,708
12/31/92 $13,326 $14,139 $13,877
1/31/93 $13,222 $14,028 $13,992
2/28/93 $13,443 $14,263 $14,183
3/31/93 $13,878 $14,725 $14,482
4/30/93 $13,682 $14,517 $14,132
5/31/93 $14,077 $14,936 $14,509
6/30/93 $13,979 $14,832 $14,552
7/31/93 $13,957 $14,809 $14,493
8/31/93 $14,514 $15,399 $15,042
9/30/93 $14,368 $15,244 $14,923
10/31/93 $14,443 $15,325 $15,232
11/30/93 $14,244 $15,113 $15,087
12/31/93 $14,343 $15,218 $15,270
1/31/94 $14,732 $15,631 $15,788
2/28/94 $14,291 $15,163 $15,360
3/31/94 $13,693 $14,529 $14,691
4/30/94 $13,888 $14,735 $14,880
5/31/94 $14,245 $15,114 $15,123
6/30/94 $13,906 $14,755 $14,753
7/31/94 $14,295 $15,167 $15,237
8/31/94 $15,225 $16,154 $15,861
9/30/94 $14,975 $15,888 $15,474
10/31/94 $15,269 $16,200 $15,820
11/30/94 $14,825 $15,730 $15,245
12/31/94 $15,010 $15,925 $15,470
1/31/95 $15,450 $16,393 $15,871
2/28/95 $16,115 $17,098 $16,489
3/31/95 $16,547 $17,557 $16,975
4/30/95 $17,052 $18,092 $17,474
5/31/95 $17,701 $18,781 $18,171
6/30/95 $17,821 $18,908 $18,593
7/31/95 $18,277 $19,392 $19,209
8/31/95 $18,365 $19,486 $19,258
9/30/95 $19,327 $20,506 $20,070
10/31/95 $19,238 $20,412 $19,998
11/30/95 $20,288 $21,525 $20,875
12/31/95 $20,777 $22,045 $21,277
1/31/96 $21,511 $22,823 $22,001
2/29/96 $21,633 $22,953 $22,205
3/31/96 $21,886 $23,221 $22,419
4/30/96 $22,201 $23,555 $22,749
5/31/96 $22,729 $24,115 $23,335
6/30/96 $22,976 $24,369 $23,424
7/31/96 $22,058 $23,404 $22,389
8/31/96 $22,356 $23,720 $22,862
9/30/96 $23,341 $24,765 $24,148
10/31/96 $23,782 $25,233 $24,814
11/30/96 $25,454 $27,016 $26,688
12/31/96 $24,984 $26,508 $26,159
1/31/97 $26,219 $27,810 $27,792
2/28/97 $26,594 $28,217 $28,011
3/31/97 $25,757 $27,328 $26,862
4/30/97 $26,588 $28,210 $28,464
5/31/97 $27,821 $29,518 $30,196
6/30/97 $29,011 $30,772 $31,548
7/31/97 $30,932 $32,810 $34,058
8/31/97 $29,434 $31,221 $32,151
9/30/97 $30,923 $32,810 $33,911
10/31/97 $29,964 $31,793 $32,779
11/30/97 $31,394 $33,310 $34,296
12/31/97 $31,996 $33,940 $34,884
1/31/98 $32,040 $33,995 $35,270
2/28/98 $34,187 $36,274 $37,812
3/31/98 $35,988 $38,184 $39,747
4/30/98 $36,318 $38,525 $40,146
5/31/98 $35,788 $37,962 $39,457
6/30/98 $36,357 $38,566 $41,059
7/31/98 $35,320 $37,475 $40,623
8/31/98 $30,884 $32,759 $34,757
9/30/98 $32,586 $34,575 $36,983
10/31/98 $34,903 $37,024 $39,989
11/30/98 $36,544 $38,765 $42,412
12/31/98 $37,697 $39,998 $44,854
1/31/99 $37,591 $39,885 $46,729
2/28/99 $37,679 $39,969 $45,277
3/31/99 $39,151 $41,530 $47,088
4/30/99 $41,170 $43,683 $48,912
5/31/99 $41,064 $43,560 $47,758
6/30/99 $42,747 $45,355 $50,407
7/31/99 $41,610 $44,150 $48,835
8/31/99 $40,918 $43,405 $48,591
9/30/99 $39,356 $41,748 $47,261
</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. Performance shown for Class A Shares for the
periods prior to November 11, 1994 reflects performance of the shares of the
predecessor collective investment fund (see footnote + below) 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).
** 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 periods prior to November 11, 1994 reflects
performance of the shares of the predecessor collective investment fund (see
footnote + below) adjusted to reflect Class B and Class C Share expenses,
respectively, including any applicable sales load (without giving effect to any
fee waivers or expense reimbursements).
*** Performance shown for Class I Shares for the periods prior to November 11,
1994 reflects performance of the shares of the predecessor collective investment
fund (see footnote + below) adjusted to reflect the Fund's 1994 estimate of its
expense ratio for the first year of operations as a mutual fund (without giving
effect to any fee waivers or expense 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 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 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.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF CLASS A AND I SHARES.
PERFORMANCE OF OTHER CLASSES WILL DIFFER.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.75% SALES CHARGE FOR CLASS
A SHARES, THE MAXIMUM 5.00% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES AND THE MAXIMUM 1.00% DEFERRED SALES CHARGE
(DECLINING TO ZERO AFTER ONE YEAR) FOR CLASS C SHARES.
[LOGO]
7
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
During the four-month period ended September 30, 1999, the Fund returned -0.52%.
Five unique and complementary equity styles make up the strategic asset
allocation of the Fund and help moderate the volatility of the Fund's annual
return and provide effective diversification across a broad equity spectrum.
Although value stocks made a brief rally during the second quarter of 1999,
investors continued to move back to growth stocks for most of the four-month
period. Stock market investors are experiencing a tug-of-war between solid
earnings growth versus higher inflation and interest rate expectations. During
the period, the Federal Reserve Board raised short-term interest rates, which
hurt stocks in the utility, deep cyclical and financial sectors. Growing
investor uncertainty linked to possible further rate hikes hurt value stocks
more than growth-style stocks. Increasing concern over the impact of Y2K on
stock performance throughout the remainder of the year and into early 2000,
contributed to volatility in the markets.
In addition, foreign currencies strengthened relative to the U.S. Dollar,
reflecting better prospects for foreign economies and boosting returns on
international investments for U.S.-based investors. The explosive growth in
telecommunications equipment and wireless services, where many European
companies are product leaders, also contributed to the Fund's performance.
The large company style of the Diversified Equity Fund, which invests in large
cap growth stocks, gained 0.03% during the fiscal year. The income equity style,
which purchases higher-yielding large cap issues, returned -4.16%, while the
index style, which tracks the S&P 500 Index, returned -1.00%. The diversified
small cap style, which is comprised of a diversified portfolio of small company
growth and value stocks, returned 0.33%. The international style of non-U.S.
growth stocks returned 5.36% during the period.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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 OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
DIVERSIFIED EQUITY FUND ("FUND") VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods. The result is compared with a broad-based securities market index. 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.
Total return of the Fund 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. 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 SEPTEMBER 30, 1999
----------------------------------------------------
A SHARES*+ B SHARES**+ C SHARES**+ I SHARES***+ S&P INDEX
---------- ----------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C>
ONE YEAR 18.73% 20.03% 24.34% 25.95% 27.79%
FIVE YEAR 19.00% 19.33% 19.59% 20.41% 25.01%
TEN YEAR 14.58% 14.40% 14.43% 15.25% 16.79%
VALUE SEPTEMBER 30, 1999 $38,988 $38,399 $38,505 $41,357 $47,261
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
A SHARES I SHARES S&P INDEX
<S> <C> <C> <C>
9/30/89 $9,425 $10,000 $10,000
10/31/89 $9,139 $9,696 $9,768
11/30/89 $9,346 $9,916 $9,966
12/31/89 $9,520 $10,100 $10,205
1/31/90 $8,932 $9,477 $9,521
2/28/90 $8,992 $9,540 $9,644
3/31/90 $9,248 $9,812 $9,900
4/30/90 $9,134 $9,691 $9,653
5/31/90 $10,134 $10,751 $10,592
6/30/90 $10,234 $10,858 $10,521
7/31/90 $10,135 $10,751 $10,487
8/31/90 $9,213 $9,775 $9,540
9/30/90 $8,611 $9,135 $9,077
10/31/90 $8,659 $9,187 $9,038
11/30/90 $9,118 $9,673 $9,621
12/31/90 $9,388 $9,961 $9,889
1/31/91 $9,978 $10,587 $10,319
2/28/91 $10,742 $11,397 $11,056
3/31/91 $11,001 $11,672 $11,323
4/30/91 $10,980 $11,649 $11,350
5/31/91 $11,504 $12,206 $11,838
6/30/91 $10,905 $11,570 $11,296
7/31/91 $11,499 $12,200 $11,822
8/31/91 $11,812 $12,531 $12,102
9/30/91 $11,749 $12,465 $11,899
10/31/91 $12,022 $12,755 $12,058
11/30/91 $11,628 $12,337 $11,574
12/31/91 $12,917 $13,704 $12,896
1/31/92 $12,807 $13,588 $12,655
2/29/92 $12,827 $13,609 $12,819
3/31/92 $12,502 $13,264 $12,570
4/30/92 $12,640 $13,410 $12,939
5/31/92 $12,810 $13,591 $13,002
6/30/92 $12,455 $13,214 $12,809
7/31/92 $12,885 $13,670 $13,332
8/31/92 $12,645 $13,416 $13,059
9/30/92 $12,758 $13,536 $13,213
10/31/92 $12,844 $13,627 $13,258
11/30/92 $13,381 $14,197 $13,708
12/31/92 $13,529 $14,354 $13,877
1/31/93 $13,542 $14,367 $13,992
2/28/93 $13,443 $14,262 $14,183
3/31/93 $13,928 $14,777 $14,482
4/30/93 $13,602 $14,431 $14,132
5/31/93 $14,062 $14,919 $14,509
6/30/93 $13,994 $14,847 $14,552
7/31/93 $14,082 $14,940 $14,493
8/31/93 $14,719 $15,616 $15,042
9/30/93 $14,770 $15,670 $14,923
10/31/93 $15,011 $15,926 $15,232
11/30/93 $14,692 $15,588 $15,087
12/31/93 $15,171 $16,096 $15,270
1/31/94 $15,682 $16,638 $15,788
2/28/94 $15,367 $16,304 $15,360
3/31/94 $14,666 $15,560 $14,691
4/30/94 $14,826 $15,730 $14,880
5/31/94 $14,960 $15,872 $15,123
6/30/94 $14,477 $15,360 $14,753
7/31/94 $14,951 $15,863 $15,237
8/31/94 $15,698 $16,638 $15,861
9/30/94 $15,401 $16,340 $15,474
10/31/94 $15,681 $16,637 $15,820
11/30/94 $15,095 $16,015 $15,245
12/31/94 $15,297 $16,230 $15,470
1/31/95 $15,464 $16,407 $15,871
2/28/95 $15,946 $16,918 $16,489
3/31/95 $16,462 $17,466 $16,975
4/30/95 $16,902 $17,932 $17,474
5/31/95 $17,425 $18,488 $18,171
6/30/95 $17,970 $19,065 $18,593
7/31/95 $18,758 $19,902 $19,209
8/31/95 $18,821 $19,969 $19,258
9/30/95 $19,547 $20,739 $20,070
10/31/95 $19,212 $20,383 $19,998
11/30/95 $19,861 $21,072 $20,875
12/31/95 $20,029 $21,250 $21,277
1/31/96 $20,601 $21,857 $22,001
2/29/96 $20,987 $22,266 $22,205
3/31/96 $21,265 $22,562 $22,419
4/30/96 $21,860 $23,193 $22,749
5/31/96 $22,365 $23,721 $23,335
6/30/96 $22,285 $23,643 $23,424
7/31/96 $21,202 $22,494 $22,389
8/31/96 $21,633 $22,952 $22,862
9/30/96 $22,790 $24,179 $24,148
10/31/96 $22,943 $24,342 $24,814
11/30/96 $24,385 $25,872 $26,688
12/31/96 $24,129 $25,592 $26,159
1/31/97 $25,298 $26,840 $27,792
2/28/97 $25,290 $26,832 $28,011
3/31/97 $24,262 $25,741 $26,862
4/30/97 $25,283 $26,824 $28,464
5/31/97 $27,006 $28,645 $30,196
6/30/97 $28,271 $29,987 $31,548
7/31/97 $30,224 $32,067 $34,058
8/31/97 $28,678 $30,427 $32,151
9/30/97 $30,372 $32,224 $33,911
10/31/97 $29,137 $30,913 $32,779
11/30/97 $29,906 $31,721 $34,296
12/31/97 $30,325 $32,174 $34,884
1/31/98 $30,673 $32,544 $35,270
2/28/98 $32,840 $34,842 $37,812
3/31/98 $34,279 $36,361 $39,747
4/30/98 $34,785 $36,898 $40,146
5/31/98 $34,050 $36,126 $39,457
6/30/98 $35,141 $37,284 $41,059
7/31/98 $34,532 $36,638 $40,623
8/31/98 $29,440 $31,235 $34,757
9/30/98 $30,950 $32,837 $36,983
10/31/98 $33,022 $35,035 $39,989
11/30/98 $34,983 $37,116 $42,412
12/31/98 $37,104 $39,367 $44,854
1/31/99 $38,176 $40,495 $46,729
2/28/99 $37,072 $39,332 $45,277
3/31/99 $38,387 $40,728 $47,088
4/30/99 $39,817 $42,245 $48,912
5/31/99 $39,183 $41,572 $47,758
6/30/99 $41,327 $43,847 $50,407
7/31/99 $40,475 $42,942 $48,835
8/31/99 $40,028 $42,469 $48,591
9/30/99 $38,988 $41,357 $47,261
</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. Performance shown for Class A Shares for the
periods prior to November 11, 1994 reflects performance of the shares of the
predecessor collective investment fund (see footnote + below) 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).
** 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 periods prior to November 11, 1994 reflects
performance of the shares of the predecessor collective investment fund (see
footnote + below) adjusted to reflect Class B and Class C Share expenses,
respectively, including any applicable sales load (without giving effect to any
fee waivers or expense reimbursements).
*** Performance shown for Class I Shares for the periods prior to November 11,
1994 reflects performance of the shares of the predecessor collective investment
fund (see footnote + below) adjusted to reflect the Fund's 1994 estimate of its
expense ratio for the first year of operations as a mutual fund (without giving
effect to any fee waivers or expense 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 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 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.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF CLASS A AND I SHARES.
PERFORMANCE OF OTHER CLASSES WILL DIFFER.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.75% SALES CHARGE FOR CLASS
A SHARES, THE MAXIMUM 5.00% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES AND THE MAXIMUM 1.00% DEFERRED SALES CHARGE
(DECLINING TO ZERO AFTER ONE YEAR) FOR CLASS C SHARES.
[LOGO]
8
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND
During the four-month period ended September 30, 1999, the Fund experienced a
gain of 1.80%. The Fund, which is made up of three equity styles, is globally
diversified, with investments in large and small capitalization stocks spread
over the domestic and international stock markets. Using these three styles
helps us moderate the volatility of the Fund's annual return and provide
effective diversification across equity investing.
Although value stocks made a brief rally during the second quarter of 1999,
investors continued to move back to growth stocks for most of the four-month
period. Stock market investors are experiencing a tug-of-war between solid
earnings growth versus higher inflation and interest rate expectations. During
the period, the Federal Reserve Board raised short-term interest rates, which
hurt stocks in the utility, deep cyclical and financial sectors. Growing
investor uncertainty linked to possible further rate hikes hurt value stocks
more than growth-style stocks. Increasing concern over the impact of Y2K on
stock performance throughout the remainder of the year and into early 2000,
contributed to volatility in the markets.
In addition, foreign currencies strengthened relative to the U.S. Dollar,
reflecting better prospects for foreign economies and boosting returns on
international investments for U.S.-based investors. The explosive growth in
telecommunications equipment and wireless services, where many European
companies are product leaders, also contributed to the Fund's performance.
The large company growth style of the Growth Equity Fund returned 0.03% during
the period. The small company style, which is comprised of a diversified
portfolio of small company growth and value stocks, returned 0.33%. The
international portfolio style returned 5.36% during the period.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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 OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
GROWTH EQUITY FUND ("FUND") VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods. The result is compared with a broad-based securities market index. 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.
Total return of the Fund 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. 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 SEPTEMBER 30, 1999
----------------------------------------------------
A SHARES*+ B SHARES**+ C SHARES**+ I SHARES***+ S&P INDEX
---------- ----------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C>
ONE YEAR 18.34% 19.57% 24.54% 25.52% 27.79%
FIVE YEAR 15.18% 15.46% 15.85% 16.54% 25.01%
TEN YEAR 13.81% 13.64% 13.72% 14.48% 16.79%
VALUE SEPTEMBER 30, 1999 $36,459 $35,920 $36,175 $38,673 $47,261
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
A SHARES I SHARES S&P INDEX
<S> <C> <C> <C>
9/30/89 $9,425 $10,000 $10,000
10/31/89 $8,974 $9,521 $9,768
11/30/89 $9,180 $9,740 $9,966
12/31/89 $9,345 $9,915 $10,205
1/31/90 $8,772 $9,308 $9,521
2/28/90 $8,864 $9,405 $9,644
3/31/90 $9,131 $9,688 $9,900
4/30/90 $9,074 $9,628 $9,653
5/31/90 $10,204 $10,827 $10,592
6/30/90 $10,408 $11,043 $10,521
7/31/90 $10,234 $10,858 $10,487
8/31/90 $9,183 $9,743 $9,540
9/30/90 $8,312 $8,819 $9,077
10/31/90 $8,398 $8,911 $9,038
11/30/90 $8,843 $9,383 $9,621
12/31/90 $9,217 $9,780 $9,889
1/31/91 $9,954 $10,561 $10,319
2/28/91 $10,801 $11,460 $11,056
3/31/91 $11,087 $11,763 $11,323
4/30/91 $10,999 $11,670 $11,350
5/31/91 $11,603 $12,311 $11,838
6/30/91 $10,876 $11,539 $11,296
7/31/91 $11,642 $12,353 $11,822
8/31/91 $12,054 $12,789 $12,102
9/30/91 $12,200 $12,945 $11,899
10/31/91 $12,697 $13,471 $12,058
11/30/91 $12,187 $12,930 $11,574
12/31/91 $13,524 $14,349 $12,896
1/31/92 $13,787 $14,628 $12,655
2/29/92 $13,691 $14,527 $12,819
3/31/92 $13,096 $13,895 $12,570
4/30/92 $12,943 $13,733 $12,939
5/31/92 $13,200 $14,006 $13,002
6/30/92 $12,651 $13,423 $12,809
7/31/92 $12,971 $13,763 $13,332
8/31/92 $12,766 $13,545 $13,059
9/30/92 $12,900 $13,687 $13,213
10/31/92 $13,136 $13,938 $13,258
11/30/92 $13,927 $14,776 $13,708
12/31/92 $14,207 $15,074 $13,877
1/31/93 $14,321 $15,195 $13,992
2/28/93 $13,838 $14,682 $14,183
3/31/93 $14,489 $15,373 $14,482
4/30/93 $14,284 $15,156 $14,132
5/31/93 $14,883 $15,791 $14,509
6/30/93 $14,811 $15,715 $14,552
7/31/93 $15,014 $15,930 $14,493
8/31/93 $15,900 $16,871 $15,042
9/30/93 $16,225 $17,215 $14,923
10/31/93 $16,542 $17,551 $15,232
11/30/93 $16,040 $17,018 $15,087
12/31/93 $17,013 $18,051 $15,270
1/31/94 $17,590 $18,663 $15,788
2/28/94 $17,369 $18,428 $15,360
3/31/94 $16,465 $17,469 $14,691
4/30/94 $16,669 $17,686 $14,880
5/31/94 $16,530 $17,539 $15,123
6/30/94 $15,884 $16,853 $14,753
7/31/94 $16,399 $17,399 $15,237
8/31/94 $17,222 $18,273 $15,861
9/30/94 $16,953 $17,988 $15,474
10/31/94 $17,176 $18,224 $15,820
11/30/94 $16,459 $17,463 $15,245
12/31/94 $16,779 $17,802 $15,470
1/31/95 $16,626 $17,641 $15,871
2/28/95 $17,076 $18,117 $16,489
3/31/95 $17,685 $18,764 $16,975
4/30/95 $18,089 $19,192 $17,474
5/31/95 $18,447 $19,572 $18,171
6/30/95 $19,284 $20,461 $18,593
7/31/95 $20,564 $21,818 $19,209
8/31/95 $20,678 $21,940 $19,258
9/30/95 $21,234 $22,530 $20,070
10/31/95 $20,549 $21,802 $19,998
11/30/95 $20,945 $22,223 $20,875
12/31/95 $20,951 $22,229 $21,277
1/31/96 $21,332 $22,633 $22,001
2/29/96 $21,911 $23,248 $22,205
3/31/96 $22,300 $23,660 $22,419
4/30/96 $23,302 $24,723 $22,749
5/31/96 $23,801 $25,253 $23,335
6/30/96 $23,326 $24,749 $23,424
7/31/96 $21,959 $23,299 $22,389
8/31/96 $22,671 $24,055 $22,862
9/30/96 $23,801 $25,253 $24,148
10/31/96 $23,621 $25,062 $24,814
11/30/96 $24,816 $26,330 $26,688
12/31/96 $24,886 $26,405 $26,159
1/31/97 $25,714 $27,283 $27,792
2/28/97 $25,396 $26,946 $28,011
3/31/97 $24,318 $25,802 $26,862
4/30/97 $24,911 $26,422 $28,464
5/31/97 $27,160 $28,817 $30,196
6/30/97 $28,548 $30,290 $31,548
7/31/97 $30,295 $32,143 $34,058
8/31/97 $29,133 $30,902 $32,151
9/30/97 $31,072 $32,968 $33,911
10/31/97 $29,601 $31,398 $32,779
11/30/97 $29,593 $31,398 $34,296
12/31/97 $29,886 $31,709 $34,884
1/31/98 $30,351 $32,193 $35,270
2/28/98 $32,541 $34,526 $37,812
3/31/98 $33,742 $35,791 $39,747
4/30/98 $34,348 $36,444 $40,146
5/31/98 $33,286 $35,307 $39,457
6/30/98 $34,208 $36,295 $41,059
7/31/98 $33,435 $35,475 $40,623
8/31/98 $27,892 $29,594 $34,757
9/30/98 $29,038 $30,809 $36,983
10/31/98 $30,631 $32,500 $39,989
11/30/98 $32,606 $34,595 $42,412
12/31/98 $34,816 $36,940 $44,854
1/31/99 $35,875 $38,064 $46,729
2/28/99 $34,083 $36,163 $45,277
3/31/99 $34,965 $37,098 $47,088
4/30/99 $36,212 $38,421 $48,912
5/31/99 $35,806 $37,991 $47,758
6/30/99 $38,063 $40,375 $50,407
7/31/99 $37,637 $39,934 $48,835
8/31/99 $37,063 $39,325 $48,591
9/30/99 $36,459 $38,673 $47,261
</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. Performance shown for Class A Shares for the
periods prior to November 11, 1994 reflects performance of the shares of the
predecessor collective investment fund (see footnote + below) 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).
** 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 periods prior to November 11, 1994 reflects
performance of the shares of the predecessor collective investment fund (see
footnote + below) adjusted to reflect Class B and Class C Share expenses,
respectively, including any applicable sales load (without giving effect to any
fee waivers or expense reimbursements).
*** Performance shown for Class I Shares for the periods prior to November 11,
1994 reflects performance of the shares of the predecessor collective investment
fund (see footnote + below) adjusted to reflect the Fund's 1994 estimate of its
expense ratio for the first year of operations as a mutual fund (without giving
effect to any fee waivers or expense 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 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 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.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF CLASS A AND I SHARES.
PERFORMANCE OF OTHER CLASSES WILL DIFFER.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.75% SALES CHARGE FOR CLASS
A SHARES, THE MAXIMUM 5.00% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER THE
SIXTH YEAR) FOR CLASS B SHARES AND THE MAXIMUM 1.00% DEFERRED SALES CHARGE
(DECLINING TO ZERO AFTER ONE YEAR) FOR CLASS C SHARES.
[LOGO]
9
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
During the four-month period ended September 30, 1999, the Fund returned -
0.13%.
The Fund focuses exclusively on large capitalization growth companies, and
invests for the long-term in very high quality, dynamic growth stocks, selling
at attractive valuation levels. In addition, the focus only on dominant or niche
companies acts as a natural diversification governor. The earnings of the
companies held in the Fund grew much more rapidly than the average S&P 500
company.
The Fund has operated in a "tug-of-war" environment. On the positive side,
earnings have been solid for the market in general, and for the Fund in
particular. When 1998 and 1999 are combined, the S&P 500 Index has averaged 6% -
8% operating earnings growth over the past two years. The Fund has been
experiencing underlying earnings growth in excess of 25% per year, on average.
On the other hand, higher inflation and interest rate expectations have
curtailed the stock market, especially in September 1999. This higher inflation
expectation environment had a disproportionately negative effect on the Fund in
the most recent quarter.
Consistency of philosophy, style, and process are hallmarks of the Fund;
therefore, any changes in the portfolio would be driven solely by our bottom-up
stock selection process.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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 OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
LARGE COMPANY GROWTH FUND ("FUND") VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods. The result is compared with a broad-based securities market index. 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.
Total return of the Fund 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. 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 SEPTEMBER 30, 1999
----------------------------------------------------
A SHARES*+ B SHARES**+ I SHARES***+ S&P INDEX
---------- ----------- ------------ ---------
<S> <C> <C> <C> <C>
ONE YEAR 31.97% 34.33% 40.28% 27.79%
FIVE YEAR 25.93% 26.40% 27.47% 25.01%
TEN YEAR 18.65% 18.51% 19.38% 16.79%
VALUE SEPTEMBER 30, 1999 $55,301 $54,627 $58,785 $47,261
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
A SHARES I SHARES S&P INDEX
<S> <C> <C> <C>
9/30/89 $9,425 $10,000 $10,000
10/31/89 $9,180 $9,741 $9,768
11/30/89 $9,394 $9,967 $9,966
12/31/89 $9,393 $9,966 $10,205
1/31/90 $8,636 $9,163 $9,521
2/28/90 $8,817 $9,356 $9,644
3/31/90 $9,272 $9,838 $9,900
4/30/90 $9,270 $9,837 $9,653
5/31/90 $10,567 $11,212 $10,592
6/30/90 $10,787 $11,445 $10,521
7/31/90 $10,360 $10,992 $10,487
8/31/90 $9,426 $10,001 $9,540
9/30/90 $8,900 $9,443 $9,077
10/31/90 $8,689 $9,220 $9,038
11/30/90 $9,453 $10,030 $9,621
12/31/90 $9,715 $10,308 $9,889
1/31/91 $10,674 $11,326 $10,319
2/28/91 $11,560 $12,265 $11,056
3/31/91 $12,131 $12,871 $11,323
4/30/91 $12,028 $12,763 $11,350
5/31/91 $13,008 $13,801 $11,838
6/30/91 $12,356 $13,110 $11,296
7/31/91 $13,328 $14,141 $11,822
8/31/91 $13,894 $14,742 $12,102
9/30/91 $13,498 $14,322 $11,899
10/31/91 $14,092 $14,953 $12,058
11/30/91 $14,200 $15,066 $11,574
12/31/91 $16,228 $17,218 $12,896
1/31/92 $15,874 $16,843 $12,655
2/29/92 $15,781 $16,745 $12,819
3/31/92 $15,266 $16,199 $12,570
4/30/92 $15,017 $15,934 $12,939
5/31/92 $15,288 $16,221 $13,002
6/30/92 $14,583 $15,473 $12,809
7/31/92 $15,286 $16,218 $13,332
8/31/92 $14,909 $15,818 $13,059
9/30/92 $15,161 $16,086 $13,213
10/31/92 $15,518 $16,465 $13,258
11/30/92 $16,528 $17,537 $13,708
12/31/92 $16,528 $17,537 $13,877
1/31/93 $16,401 $17,402 $13,992
2/28/93 $15,748 $16,709 $14,183
3/31/93 $16,318 $17,314 $14,482
4/30/93 $14,932 $15,843 $14,132
5/31/93 $15,664 $16,621 $14,509
6/30/93 $15,463 $16,407 $14,552
7/31/93 $15,604 $16,557 $14,493
8/31/93 $16,177 $17,164 $15,042
9/30/93 $16,329 $17,326 $14,923
10/31/93 $16,573 $17,585 $15,232
11/30/93 $16,136 $17,120 $15,087
12/31/93 $16,468 $17,474 $15,270
1/31/94 $17,072 $18,114 $15,788
2/28/94 $16,912 $17,944 $15,360
3/31/94 $16,158 $17,144 $14,691
4/30/94 $16,061 $17,041 $14,880
5/31/94 $16,216 $17,206 $15,123
6/30/94 $15,296 $16,230 $14,753
7/31/94 $16,059 $17,039 $15,237
8/31/94 $16,760 $17,783 $15,861
9/30/94 $16,460 $17,465 $15,474
10/31/94 $16,833 $17,860 $15,820
11/30/94 $16,121 $17,105 $15,245
12/31/94 $16,293 $17,287 $15,470
1/31/95 $16,627 $17,641 $15,871
2/28/95 $17,042 $18,082 $16,489
3/31/95 $17,547 $18,618 $16,975
4/30/95 $18,008 $19,107 $17,474
5/31/95 $18,567 $19,701 $18,171
6/30/95 $19,912 $21,128 $18,593
7/31/95 $20,887 $22,162 $19,209
8/31/95 $21,076 $22,363 $19,258
9/30/95 $21,970 $23,311 $20,070
10/31/95 $21,293 $22,593 $19,998
11/30/95 $21,726 $23,053 $20,875
12/31/95 $21,056 $22,341 $21,277
1/31/96 $21,612 $22,931 $22,001
2/29/96 $22,623 $24,004 $22,205
3/31/96 $22,878 $24,275 $22,419
4/30/96 $23,816 $25,271 $22,749
5/31/96 $24,573 $26,073 $23,335
6/30/96 $24,245 $25,725 $23,424
7/31/96 $22,897 $24,294 $22,389
8/31/96 $23,142 $24,555 $22,862
9/30/96 $25,293 $26,837 $24,148
10/31/96 $25,092 $26,624 $24,814
11/30/96 $26,687 $28,316 $26,688
12/31/96 $26,343 $27,951 $26,159
1/31/97 $28,455 $30,192 $27,792
2/28/97 $27,812 $29,510 $28,011
3/31/97 $25,839 $27,416 $26,862
4/30/97 $27,858 $29,559 $28,464
5/31/97 $29,960 $31,790 $30,196
6/30/97 $31,540 $33,466 $31,548
7/31/97 $34,451 $36,554 $34,058
8/31/97 $32,551 $34,537 $32,151
9/30/97 $34,818 $36,944 $33,911
10/31/97 $33,505 $35,551 $32,779
11/30/97 $34,534 $36,642 $34,296
12/31/97 $35,129 $37,274 $34,884
1/31/98 $36,052 $38,253 $35,270
2/28/98 $38,910 $41,285 $37,812
3/31/98 $39,912 $42,349 $39,747
4/30/98 $40,954 $43,454 $40,146
5/31/98 $39,634 $42,054 $39,457
6/30/98 $43,246 $45,887 $41,059
7/31/98 $43,336 $45,981 $40,623
8/31/98 $36,101 $38,305 $34,757
9/30/98 $39,496 $41,906 $36,983
10/31/98 $42,390 $44,981 $39,989
11/30/98 $46,417 $49,266 $42,412
12/31/98 $51,981 $55,168 $44,854
1/31/99 $56,217 $59,679 $46,729
2/28/99 $53,851 $57,170 $45,277
3/31/99 $57,190 $60,723 $47,088
4/30/99 $57,429 $60,992 $48,912
5/31/99 $55,425 $58,861 $47,758
6/30/99 $60,301 $64,061 $50,407
7/31/99 $57,352 $60,949 $48,835
8/31/99 $57,496 $61,100 $48,591
9/30/99 $55,301 $58,785 $47,261
</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. Performance shown for Class A Shares for the periods
prior to November 11, 1994 reflects performance of the shares of the predecessor
collective investment fund (see footnote + below) 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).
** 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 periods prior to November 11, 1994
reflects performance of the shares of the predecessor collective investment fund
(see footnote + below) adjusted to reflect Class B Share expenses, including any
applicable sales load (without giving effect to any fee waivers or expense
reimbursements).
*** Performance shown for Class I Shares for the periods prior to November 11,
1994 reflects performance of the shares of the predecessor collective investment
fund (see footnote + below) adjusted to reflect the Fund's 1994 estimate of its
expense ratio for the first year of operations as a mutual fund (without giving
effect to any fee waivers or expense 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 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 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.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF CLASS A AND I SHARES.
PERFORMANCE OF OTHER CLASSES WILL DIFFER.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.75% SALES CHARGE FOR CLASS
A SHARES AND THE MAXIMUM 5.00% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER
THE SIXTH YEAR) FOR CLASS B SHARES.
[LOGO]
10
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
The Diversified Small Cap Fund returned 0.33% during the four-month period ended
September 30, 1999. 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. These styles help us moderate
the volatility of the Fund's annual return and provide effective diversification
across small cap investing.
After a strong second calendar quarter, smaller companies had a difficult third
quarter with a combination of interest rate jitters, concerns over the dollar
and the health of the economy taking their toll on the U.S. equity markets. For
the four-month period, smaller companies performed in line with larger
companies, with the Russell 2000 Index declining by 2% and the S&P 500 Index
declining by 1%. There also were a large number of corporate mergers and
acquisitions as both financial buyers and domestic and foreign acquirers took
advantage of the extremely low valuations of many smaller U.S. companies.
The market's very narrow focus on the highest P/E quintile in the technology
sector hurt relative performance of the Fund's small company growth style
holdings. However, the small company value style of the Fund experienced
stronger performance during the third calendar quarter. The strong performance
of the style's technology stocks and the solid relative performance of its
discretionary stocks were driven by good stock selection.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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 OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
DIVERSIFIED SMALL CAP FUND ("FUND") VS. RUSSELL 2000 VALUE INDEX ("RUSSELL INDEX
I")
AND RUSSELL 2000 INDEX ("RUSSELL INDEX II")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, since inception. The result is
compared with two broad-based securities market indices. The Fund's total return
includes operating expenses and sales charges (if applicable) that reduce
returns, while the total returns of the Indices do not. Total return of the Fund
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. 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 SEPTEMBER 30, 1999
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
RUSSELL
RUSSELL INDEX
A SHARES* B SHARES** I SHARES INDEX I II+
-------- -------- -------- -------- --------
ONE YEAR 6.58% 7.56% 13.18% 5.82% 19.07%
SINCE INCEPTION (8.92%) (8.49%) (5.73%) (5.39%) (0.13%)
INCEPTION DATE 12/31/97 12/31/97 12/31/97 12/31/97 12/31/97
VALUE SEPTEMBER 30, 1999 $ 8,494 $ 8,563 $ 9,020 $ 9,076 $ 9,977
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
A SHARES I SHARES RUSSELL INDEX I RUSSELL INDEX II
<S> <C> <C> <C> <C>
12/31/1997 $9,425 $10,000 $10,000 $10,000
1/31/1998 $9,312 $9,880 $9,819 $9,843
2/28/1998 $10,075 $10,690 $10,412 $10,570
3/31/1998 $10,527 $11,170 $10,835 $11,006
4/30/1998 $10,574 $11,220 $10,888 $11,067
5/31/1998 $9,915 $10,520 $10,503 $10,471
6/30/1998 $9,849 $10,450 $10,443 $10,493
7/31/1998 $9,104 $9,660 $9,625 $9,644
8/31/1998 $7,163 $7,600 $8,118 $7,771
9/30/1998 $7,512 $7,970 $8,576 $8,379
10/31/1998 $7,853 $8,320 $8,831 $8,721
11/30/1998 $8,253 $8,750 $9,070 $9,178
12/31/1998 $8,619 $9,140 $9,354 $9,746
1/31/1999 $8,530 $9,040 $9,142 $9,875
2/28/1999 $7,782 $8,260 $8,518 $9,076
3/31/1999 $7,684 $8,150 $8,448 $9,217
4/30/1999 $8,218 $8,720 $9,219 $10,043
5/31/1999 $8,476 $8,990 $9,502 $10,190
6/30/1999 $8,948 $9,500 $9,846 $10,651
7/31/1999 $8,895 $9,450 $9,613 $10,358
8/31/1999 $8,547 $9,070 $9,261 $9,975
9/30/1999 $8,494 $9,020 $9,076 $9,977
</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.
+ Because the Fund does not reflect either growth or value investing, the
Russell 2000 Index is a more suitable benchmark than the Russell 2000 Value
Index. For this reason, we have changed the benchmark to the Russell 2000 Index.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF CLASS A AND I SHARES.
PERFORMANCE OF OTHER CLASSES WILL DIFFER.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.75% SALES CHARGE FOR CLASS
A SHARES AND THE MAXIMUM 5.00% 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.
[LOGO]
11
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
During the four-month period ended September 30, 1999, the Fund returned -0.05%.
The Fund suffered through the period mainly due to a lack of exposure to some of
the faster growing but more expensive technology stocks.
Smaller companies had a strong start to the four-month period, but faced
difficulties late in the period. Problems were a result of interest rate
jitters, concerns over the dollar and the health of the economy taking their
toll on the U.S. equity markets. Internet stocks, which sold-off in June,
rebounded in July, and after a brief correction in the new issue market in early
August, continued strong for the remainder of the quarter. Indeed, the only
sectors to generate positive returns for the quarter were energy, which
benefited from higher oil prices, and technology.
During the period there were a large number of corporate mergers and
acquisitions as both financial buyers and domestic and foreign acquirers took
advantage of the extremely low valuations of many U.S. smaller companies. Once
again the Fund saw a number of holdings bid for including UNITRODE, ROBERTS
PHARMACEUTICALS and SMART MODULAR TECHNOLOGY.
In addition to takeovers, the Fund also benefited from sector exposure. The
strongest performer was technology especially cable TV suppliers ANTEC and
AMPHENOL, component manufacturer CTS and SYMANTEC, a maker of antivirus
software. The advertising company TRUE NORTH COMMUNICATIONS was a particular
standout in the media sector. Consumer stocks were very strong in the first half
of the quarter and sold off dramatically despite continued strong fundamentals.
This hurt overall performance due to the fact that the Fund had a large
weighting in this sector. Fund management continues to believe that these
companies have the potential to generate strong earnings growth and should
rebound sharply once fears over rising interest rates subside. On the negative
side, transportation stocks were weak due to rising fuel prices.
The period indicated that the Fund's focus on strong fundamentals was shared by
the variety of buyers who bid for the Fund's portfolio holdings. While the
potential of rising interest rates is a negative for stock markets around the
world, we believe that rising rates will have more of an impact on highly valued
"growth" companies, including many large-cap favorites, than on the more
reasonably priced companies in which we invest. We continue to believe that over
time the market is efficient and that the extremely large valuation disparity
between large and smaller companies will narrow, as investors return to smaller
companies. In any event, the Fund will remain true to its discipline of
investing in underfollowed and misunderstood companies that sell at favorable
prices in relation to book values and earnings.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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 OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
SMALL CAP OPPORTUNITIES FUND ("FUND") VS. RUSSELL 2000 INDEX ("RUSSELL INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, since inception. The result is
compared with a broad-based securities market index. 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. Total return of the Fund
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. 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 SEPTEMBER 30, 1999
------------------------
<S> <C> <C> <C> <C>
RUSSELL
A SHARES* B SHARES** I SHARES INDEX
-------- -------- ------- -------
ONE YEAR 6.64% 7.16% 13.15% 19.07%
FIVE YEAR 15.09% 15.36% 16.46% 12.39%
SINCE INCEPTION 14.91% 15.15% 16.02% 11.66%
INCEPTION DATE 8/1/93 8/1/93 8/1/93 8/1/93
VALUE SEPTEMBER 30, 1999 $23,559 $23,861 $24,996 $19,735
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
A SHARES I SHARES RUSSELL INDEX
<S> <C> <C> <C>
8/1/93 $9,425 $10,000 $10,000
8/31/93 $9,755 $10,350 $10,432
9/30/93 $10,198 $10,820 $10,726
10/31/93 $10,358 $10,990 $11,002
11/30/93 $10,094 $10,710 $10,640
12/31/93 $10,558 $11,202 $11,004
1/31/94 $10,985 $11,656 $11,349
2/28/94 $11,128 $11,807 $11,308
3/31/94 $10,577 $11,222 $10,711
4/30/94 $10,729 $11,384 $10,775
5/31/94 $10,691 $11,343 $10,654
6/30/94 $10,501 $11,142 $10,292
7/31/94 $10,625 $11,273 $10,461
8/31/94 $11,232 $11,918 $11,044
9/30/94 $10,995 $11,666 $11,007
10/31/94 $11,213 $11,897 $10,963
11/30/94 $10,729 $11,384 $10,521
12/31/94 $11,028 $11,701 $10,803
1/31/95 $11,077 $11,753 $10,667
2/28/95 $11,668 $12,380 $11,111
3/31/95 $12,022 $12,756 $11,302
4/30/95 $12,337 $13,090 $11,553
5/31/95 $12,613 $13,383 $11,752
6/30/95 $13,155 $13,957 $12,362
7/31/95 $14,248 $15,117 $13,074
8/31/95 $14,779 $15,681 $13,344
9/30/95 $15,291 $16,224 $13,583
10/31/95 $14,907 $15,817 $12,975
11/30/95 $15,724 $16,684 $13,520
12/31/95 $16,441 $17,444 $13,877
1/31/96 $16,362 $17,360 $13,862
2/29/96 $16,810 $17,835 $14,294
3/31/96 $17,705 $18,785 $14,585
4/30/96 $18,824 $19,973 $15,365
5/31/96 $19,944 $21,160 $15,970
6/30/96 $19,283 $20,460 $15,315
7/31/96 $17,828 $18,916 $13,977
8/31/96 $18,377 $19,498 $14,789
9/30/96 $19,429 $20,614 $15,366
10/31/96 $19,283 $20,472 $15,130
11/30/96 $19,921 $21,148 $15,753
12/31/96 $20,150 $21,391 $16,166
1/31/97 $20,575 $21,831 $16,489
2/28/97 $20,564 $21,831 $16,089
3/31/97 $19,802 $21,022 $15,330
4/30/97 $19,870 $21,094 $15,373
5/31/97 $22,211 $23,577 $17,083
6/30/97 $23,510 $24,944 $17,815
7/31/97 $24,630 $26,144 $18,644
8/31/97 $25,179 $26,715 $19,071
9/30/97 $26,892 $28,545 $20,466
10/31/97 $25,671 $27,238 $19,567
11/30/97 $25,470 $27,036 $19,441
12/31/97 $25,677 $27,256 $19,781
1/31/98 $25,161 $26,695 $19,469
2/28/98 $26,860 $28,498 $20,909
3/31/98 $28,524 $30,264 $21,771
4/30/98 $28,558 $30,300 $21,891
5/31/98 $27,089 $28,754 $20,712
6/30/98 $27,124 $28,790 $20,756
7/31/98 $25,264 $26,805 $19,076
8/31/98 $20,305 $21,544 $15,371
9/30/98 $20,822 $22,092 $16,574
10/31/98 $21,591 $22,908 $17,250
11/30/98 $22,888 $24,284 $18,154
12/31/98 $23,284 $24,704 $19,278
1/31/99 $22,824 $24,216 $19,534
2/28/99 $21,353 $22,655 $17,952
3/31/99 $21,364 $22,667 $18,232
4/30/99 $22,778 $24,179 $19,866
5/31/99 $23,559 $25,009 $20,156
6/30/99 $25,122 $26,655 $21,067
7/31/99 $24,743 $26,264 $20,489
8/31/99 $23,467 $24,911 $19,731
9/30/99 $23,559 $24,996 $19,735
</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, 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.
** 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.
PRIOR TO 6/1/99, THE FUND'S PERFORMANCE INCLUDES THE PERFORMANCE HISTORY OF THE
CORE PORTFOLIO IN WHICH IT PREVIOUSLY INVESTED.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF CLASS A AND I SHARES.
PERFORMANCE OF OTHER CLASSES WILL DIFFER.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.75% SALES CHARGE FOR
CLASS A SHARES AND THE MAXIMUM 5.00% 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.
[LOGO]
12
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
During the four-month period ended September 30, 1999, the Fund returned -1.49%.
Technology stocks were major contributors to performance for big and small
stocks. Seven of the top 10 stocks in the S&P 500 Index were tech stocks, adding
over 200 basis points to returns. The average forward P/E of these seven stocks
was 52x next year's earnings. Similarly, 14 of the top 20 contributors to the
Russell 2000 Index also were technology companies, adding 140 basis points to
that index's return. At September 30, these 14 stocks were selling at an average
of 79x earnings.
The Fund's performance was penalized by its lack of exposure to high P/E
technology stocks. Over the final three months of the most recent period, there
has been a return to the narrowly focused market that has characterized much of
the past two years. This has created a difficult environment for the Fund. In
the second quarter of 1999, rational valuation enabled the market to broaden,
and the Fund produced excellent results. Recently, the market's very narrow
focus on the highest P/E quintile in the tech sector again hurt relative
performance.
The portfolio's P/E and earnings growth of 15x and 24%, respectively, are
outstanding on their own. When compared to a market selling at a P/E of 26x for
just 7% long-term growth, it is even more compelling. Beyond the near term
issues that face the investors, we believe that the market will, as it did in
the second calendar quarter, come to realize the tremendous value in small
stocks, and that the portfolio's performance will improve dramatically, as it
did in the second quarter. Until then, we will continue to manage the Fund the
way we always have, searching the market for small stocks with attractive growth
and valuation characteristics.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
SMALL COMPANY GROWTH FUND ("FUND") VS. RUSSELL 2000 INDEX ("RUSSELL 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. The result is compared with a broad-based securities market index. The
Fund's total return includes operating expenses that reduce returns, while the
total return of the Index does not. Total return of the Fund 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. 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 SEPTEMBER 30, 1999
------------------------
RUSSELL
I SHARES* INDEX
--------- -----
<S> <C> <C>
ONE YEAR 19.09% 19.07%
FIVE YEAR 13.35% 12.39%
TEN YEAR 15.81% 10.93%
VALUE SEPTEMBER 30, 1999 $43,416 $28,227
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
I SHARES RUSSELL INDEX
<S> <C> <C>
9/30/89 $10,000 $10,000
10/31/89 $9,241 $9,408
11/30/89 $9,374 $9,471
12/31/89 $9,518 $9,508
1/31/90 $8,657 $8,677
2/28/90 $9,117 $8,946
3/31/90 $9,606 $9,294
4/30/90 $9,473 $8,991
5/31/90 $9,704 $9,627
6/30/90 $10,978 $9,647
7/31/90 $10,649 $9,222
8/31/90 $9,393 $7,994
9/30/90 $8,439 $7,287
10/31/90 $8,083 $6,842
11/30/90 $8,965 $7,364
12/31/90 $9,779 $7,656
1/31/91 $10,673 $8,348
2/28/91 $11,836 $9,279
3/31/91 $12,773 $9,932
4/30/91 $12,527 $9,907
5/31/91 $13,555 $10,379
6/30/91 $12,424 $9,775
7/31/91 $13,483 $10,118
8/31/91 $14,578 $10,492
9/30/91 $14,931 $10,574
10/31/91 $16,122 $10,854
11/30/91 $14,859 $10,352
12/31/91 $16,863 $11,181
1/31/92 $18,159 $12,087
2/29/92 $18,144 $12,439
3/31/92 $16,980 $12,018
4/30/92 $16,221 $11,597
5/31/92 $16,103 $11,752
6/30/92 $15,284 $11,196
7/31/92 $16,056 $11,585
8/31/92 $15,600 $11,258
9/30/92 $16,053 $11,518
10/31/92 $16,914 $11,884
11/30/92 $18,822 $12,794
12/31/92 $19,734 $13,239
1/31/93 $20,361 $13,687
2/28/93 $18,869 $13,371
3/31/93 $19,816 $13,805
4/30/93 $19,581 $13,426
5/31/93 $20,866 $14,020
6/30/93 $20,915 $14,108
7/31/93 $20,955 $14,302
8/31/93 $22,608 $14,920
9/30/93 $23,543 $15,341
10/31/93 $23,599 $15,736
11/30/93 $22,925 $15,218
12/31/93 $24,103 $15,739
1/31/94 $24,382 $16,232
2/28/94 $24,201 $16,173
3/31/94 $22,585 $15,320
4/30/94 $22,933 $15,411
5/31/94 $22,228 $15,238
6/30/94 $21,222 $14,720
7/31/94 $21,888 $14,962
8/31/94 $23,340 $15,796
9/30/94 $23,200 $15,743
10/31/94 $23,225 $15,681
11/30/94 $22,195 $15,047
12/31/94 $23,275 $15,452
1/31/95 $23,233 $15,257
2/28/95 $24,564 $15,891
3/31/95 $25,256 $16,165
4/30/95 $25,644 $16,524
5/31/95 $25,896 $16,809
6/30/95 $27,961 $17,680
7/31/95 $30,739 $18,699
8/31/95 $31,892 $19,086
9/30/95 $32,595 $19,427
10/31/95 $31,442 $18,558
11/30/95 $32,375 $19,337
12/31/95 $32,464 $19,848
1/31/96 $32,510 $19,826
2/29/96 $33,586 $20,444
3/31/96 $34,315 $20,860
4/30/96 $37,022 $21,976
5/31/96 $38,179 $22,842
6/30/96 $35,888 $21,904
7/31/96 $33,482 $19,991
8/31/96 $36,108 $21,152
9/30/96 $37,531 $21,978
10/31/96 $36,710 $21,639
11/30/96 $38,063 $22,531
12/31/96 $38,897 $23,121
1/31/97 $40,233 $23,584
2/28/97 $38,611 $23,012
3/31/97 $36,820 $21,926
4/30/97 $36,521 $21,987
5/31/97 $40,337 $24,433
6/30/97 $43,231 $25,480
7/31/97 $46,515 $26,666
8/31/97 $47,268 $27,276
9/30/97 $50,781 $29,272
10/31/97 $49,508 $27,987
11/30/97 $48,183 $27,805
12/31/97 $47,518 $28,292
1/31/98 $47,210 $27,846
2/28/98 $50,756 $29,905
3/31/98 $53,364 $31,138
4/30/98 $53,687 $31,310
5/31/98 $49,364 $29,624
6/30/98 $48,368 $29,686
7/31/98 $45,393 $27,283
8/31/98 $33,833 $21,985
9/30/98 $36,455 $23,706
10/31/98 $39,005 $24,673
11/30/98 $41,261 $25,965
12/31/98 $43,191 $27,572
1/31/99 $44,508 $27,938
2/28/99 $39,705 $25,676
3/31/99 $39,448 $26,076
4/30/99 $42,307 $28,413
5/31/99 $44,074 $28,828
6/30/99 $46,869 $30,132
7/31/99 $46,821 $29,305
8/31/99 $43,946 $28,220
9/30/99 $43,416 $28,227
</TABLE>
* 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 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 (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.
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.
[LOGO]
13
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
For the four-month period ended September 30, 1999, the Fund returned 4.12%.
International equity markets rose modestly for the four-month period ended
September 30, 1999. Although further evidence of the global economic recovery
appeared, markets were volatile because of concerns over the interest rate
environment. The massive easing in global monetary policy, which was one of the
dominant factors behind equity market strength since October 1998, came to an
end and central banks are adopting more hawkish outlooks. The Federal Reserve
Board raised interest rates in August, and the Bank of England surprised
investors with a hike in September. Fund management anticipates further
increases in the U.K. and perhaps Continental Europe in the upcoming year.
During the period, the Fund continued to increase exposure to Asia and emerging
markets opportunistically where the economic recovery appeared strongest, and
interest rates were kept low to foster growth. Japan, Hong Kong and Australia
were some of the markets included. While the Fund benefited from its overweight
position in Japan, the lack of exposure to banks hurt the Fund's performance as
bank stocks surged after two Japanese banks announced a merger that created the
world's largest bank by assets. We remain underweighted in Hong Kong and
Australia, but this stance also contributed to performance as these two markets
underperformed due to their link to rising U.S. bond yields and regional
portfolio outflows to Japanese equities. Exposure to emerging markets continued
through Asia and Latin America.
European positions were reduced to fund the Asian and emerging market purchases,
as European growth has been relatively disappointing, and investors reduced
their weightings in the region during the period. The Fund's overweight position
in the U.K. detracted as equities saw poor results due to the interest rate
rise. Also, oil holdings in the U.K., including BP AMOCO, SHELL and
LASMO responded negatively to the rise in oil prices.
We expect world growth, led by Asia and the emerging markets, to accelerate.
Given the lack of further interest rate easing, markets are likely to be
dependent on earnings growth rather than revaluation. Cyclically sensitive
stocks and countries are most likely to lead markets. In Asia, we believe that
structural reform and better corporate governance should enhance shareholder
returns in the long-term.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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 OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
INTERNATIONAL FUND ("FUND") VS. MSCI EAFE INDEX ("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. The result is compared with a broad-based securities market index. 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.
Total return of the Fund 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. 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 SEPTEMBER 30, 1999
------------------------
A SHARES*+ B SHARES**+ I SHARES+ INDEX
---------- ----------- --------- -----
<S> <C> <C> <C> <C>
ONE YEAR 13.12% 14.12% 20.01% 30.94%
FIVE YEAR 6.97% 6.96% 8.07% 9.12%
TEN YEAR 6.90% 6.65% 7.45% 5.81%
VALUE SEPTEMBER 30, 1999 $19,490 $19,031 $20,513 $17,598
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
A SHARES I SHARES INDEX
<S> <C> <C> <C> <C>
9/30/1989 $9,425 $10,000 $10,000
10/31/1989 $9,048 $9,605 $9,598
11/30/1989 $9,356 $9,927 $10,080
12/31/1989 $9,753 $10,348 $10,452
1/31/1990 $9,713 $10,305 $10,063
2/28/1990 $9,262 $9,828 $9,361
3/31/1990 $9,048 $9,600 $8,386
4/30/1990 $9,020 $9,570 $8,319
5/31/1990 $9,823 $10,422 $9,269
6/30/1990 $10,078 $10,693 $9,187
7/31/1990 $10,348 $10,979 $9,316
8/31/1990 $9,325 $9,894 $8,412
9/30/1990 $8,093 $8,587 $7,239
10/31/1990 $9,060 $9,612 $8,367
11/30/1990 $8,640 $9,167 $7,874
12/31/1990 $8,654 $9,182 $8,002
1/31/1991 $9,051 $9,603 $8,260
2/28/1991 $9,593 $10,178 $9,146
3/31/1991 $9,024 $9,574 $8,596
4/30/1991 $9,107 $9,662 $8,681
5/31/1991 $9,082 $9,636 $8,772
6/30/1991 $8,611 $9,136 $8,127
7/31/1991 $9,000 $9,549 $8,527
8/31/1991 $8,776 $9,312 $8,353
9/30/1991 $9,180 $9,740 $8,824
10/31/1991 $9,114 $9,670 $8,949
11/30/1991 $8,679 $9,209 $8,531
12/31/1991 $9,063 $9,616 $8,972
1/31/1992 $9,079 $9,633 $8,780
2/29/1992 $8,963 $9,510 $8,466
3/31/1992 $8,681 $9,210 $7,907
4/30/1992 $8,956 $9,504 $7,944
5/31/1992 $9,455 $10,032 $8,476
6/30/1992 $9,223 $9,786 $8,074
7/31/1992 $8,956 $9,503 $7,868
8/31/1992 $9,043 $9,595 $8,361
9/30/1992 $8,889 $9,432 $8,196
10/31/1992 $8,652 $9,180 $7,766
11/30/1992 $8,596 $9,120 $7,839
12/31/1992 $8,696 $9,226 $7,880
1/31/1993 $8,679 $9,209 $7,879
2/28/1993 $8,867 $9,408 $8,117
3/31/1993 $9,360 $9,931 $8,824
4/30/1993 $9,977 $10,586 $9,662
5/31/1993 $10,068 $10,683 $9,866
6/30/1993 $10,068 $10,652 $9,712
7/31/1993 $10,387 $11,020 $10,052
8/31/1993 $11,055 $11,730 $10,595
9/30/1993 $11,169 $11,850 $10,356
10/31/1993 $11,691 $12,404 $10,675
11/30/1993 $11,263 $11,950 $9,742
12/31/1993 $12,630 $13,400 $10,446
1/31/1994 $13,336 $14,150 $11,329
2/28/1994 $13,047 $13,843 $11,297
3/31/1994 $12,464 $13,225 $10,811
4/30/1994 $12,844 $13,628 $11,269
5/31/1994 $12,830 $13,613 $11,205
6/30/1994 $12,690 $13,465 $11,363
7/31/1994 $12,897 $13,684 $11,472
8/31/1994 $13,425 $14,244 $11,744
9/30/1994 $13,114 $13,914 $11,374
10/31/1994 $13,336 $14,150 $11,753
11/30/1994 $12,938 $13,612 $11,188
12/31/1994 $12,831 $13,499 $11,258
1/31/1995 $12,103 $12,734 $10,825
2/28/1995 $12,065 $12,693 $10,794
3/31/1995 $12,747 $13,411 $11,468
4/30/1995 $13,122 $13,814 $11,899
5/31/1995 $13,383 $14,088 $11,757
6/30/1995 $13,429 $14,144 $11,551
7/31/1995 $14,110 $14,861 $12,270
8/31/1995 $13,666 $14,394 $11,802
9/30/1995 $14,064 $14,813 $12,033
10/31/1995 $13,789 $14,515 $11,709
11/30/1995 $13,873 $14,612 $12,035
12/31/1995 $14,329 $15,091 $12,520
1/31/1996 $14,626 $15,403 $12,571
2/29/1996 $14,766 $15,543 $12,614
3/31/1996 $15,031 $15,830 $12,882
4/30/1996 $15,429 $16,249 $13,256
5/31/1996 $15,460 $16,281 $13,012
6/30/1996 $15,577 $16,396 $13,085
7/31/1996 $15,086 $15,879 $12,703
8/31/1996 $15,179 $15,978 $12,731
9/30/1996 $15,491 $16,306 $13,069
10/31/1996 $15,148 $15,945 $12,935
11/30/1996 $15,725 $16,560 $13,450
12/31/1996 $15,718 $16,545 $13,277
1/31/1997 $15,537 $16,354 $12,812
2/28/1997 $15,860 $16,694 $13,022
3/31/1997 $15,947 $16,785 $13,069
4/30/1997 $16,073 $16,926 $13,138
5/31/1997 $17,057 $17,954 $13,993
6/30/1997 $17,845 $18,783 $14,765
7/31/1997 $18,200 $19,156 $15,004
8/31/1997 $16,616 $17,489 $13,883
9/30/1997 $17,522 $18,443 $14,661
10/31/1997 $16,372 $17,233 $13,534
11/30/1997 $16,073 $16,918 $13,396
12/31/1997 $16,199 $17,051 $13,513
1/31/1998 $16,772 $17,654 $14,131
2/28/1998 $17,671 $18,600 $15,038
3/31/1998 $18,387 $19,353 $15,501
4/30/1998 $18,817 $19,813 $15,623
5/31/1998 $18,968 $19,964 $15,547
6/30/1998 $18,849 $19,847 $15,665
7/31/1998 $18,944 $19,947 $15,824
8/31/1998 $16,733 $17,612 $13,864
9/30/1998 $16,239 $17,093 $13,439
10/31/1998 $17,002 $17,895 $14,839
11/30/1998 $17,717 $18,647 $15,600
12/31/1998 $18,242 $19,199 $16,215
1/31/1999 $18,554 $19,528 $16,167
2/28/1999 $18,307 $19,277 $15,782
3/31/1999 $18,808 $19,804 $16,441
4/30/1999 $19,375 $20,401 $17,107
5/31/1999 $18,710 $19,701 $16,226
6/30/1999 $19,350 $20,375 $16,858
7/31/1999 $19,860 $20,910 $17,359
8/31/1999 $19,704 $20,737 $17,423
9/30/1999 $19,490 $20,513 $17,598
</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. Performance shown for Class A Shares for the
periods prior to November 11, 1994 reflects performance of the shares of the
predecessor collective investment fund (see footnote + below), including any
applicable sales load.
** 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 periods prior to November 11, 1994
reflects performance of the shares of the predecessor collective investment fund
(see footnote + below) adjusted to reflect Class B Share expenses, including any
applicable sales load (without giving effect to any fee waivers or expense
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 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. 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.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF CLASS A AND I SHARES.
PERFORMANCE OF OTHER CLASSES WILL DIFFER.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 5.75% SALES CHARGE FOR CLASS
A SHARES AND THE MAXIMUM 5.00% 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.
[LOGO]
14
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
PERFORMA DISCIPLINED GROWTH FUND
During the four-month period ended September 30, 1999, the Fund experienced
neither a gain nor a loss.
The Fund seeks to identify attractively valued companies that are expected to
report future positive earnings surprises and to experience future upward
revisions in Wall Street's opinion of the earnings power of the company. For the
four-month period ending September 30, 1999, the Fund had a 95% positive
surprise rate versus a 77% positive surprise rate for the S&P 500 Index. With
respect to earnings estimate revisions, 95% of the Fund companies experienced
positive estimate revisions over the period vs. 57% for the S&P 500 Index.
The U.S. stock markets continued to broaden in the second and third calendar
quarters of 1999. The markets remained volatile with all major indices falling
for the four-month period. Technology continued to lead the markets with the
NASDAQ Composite up over 24% while the NYSE Composite was flat for the year. The
mega-cap stocks that led the markets during 1998 and the first quarter of 1999
performed in-line with the rest of the markets, surrendering much of their
market leadership. Investors continue to prefer small cap growth stocks to small
cap value stocks, and the Russell 2000 Growth Index now leads the Russell 2000
Value Index by over 10% year to date. Our focus on stocks with the potential to
report significant positive earnings surprises worked well, as positive earnings
surprise stocks outperformed negative earnings surprise stocks by 9% during the
four-month period.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
PERFORMA DISCIPLINED GROWTH FUND ("FUND") VS. STANDARD & POOR'S 500 INDEX ("S&P
INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, since inception. The result is
compared with a broad-based securities market index. The Fund's total return
includes operating expenses that reduce returns, while the total return of the
Index does not. Total return of the Fund 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. 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 SEPTEMBER 30, 1999
------------------------
<S> <C> <C>
S&P
I SHARES INDEX
-------- --------
ONE YEAR 22.17% 27.79%
SINCE INCEPTION 14.21% 18.05%
INCEPTION DATE 10/15/97 9/30/97
VALUE SEPTEMBER 30, 1999 $11,421 $13,937
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
I SHARES S&P INDEX
<S> <C> <C>
9/30/97 $10,000 $10,000
10/31/97 $9,300 $9,666
11/30/97 $9,520 $10,113
12/31/97 $9,539 $10,287
1/31/98 $9,359 $10,401
2/28/98 $10,120 $11,150
3/31/98 $10,580 $11,721
4/30/98 $10,750 $11,839
5/31/98 $10,450 $11,636
6/30/98 $10,750 $12,108
7/31/98 $10,510 $11,979
8/31/98 $8,888 $10,249
9/30/98 $9,349 $10,906
10/31/98 $9,859 $11,792
11/30/98 $10,210 $12,507
12/31/98 $11,141 $13,227
1/31/99 $11,341 $13,780
2/28/99 $10,971 $13,352
3/31/99 $11,031 $13,886
4/30/99 $11,511 $14,424
5/31/99 $11,421 $14,084
6/30/99 $11,801 $14,865
7/31/99 $11,811 $14,401
8/31/99 $11,591 $14,329
9/30/99 $11,421 $13,937
</TABLE>
[LOGO]
15
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONCLUDED) SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
PERFORMA SMALL CAP VALUE FUND
During the four-month period ended September 30, 1999, the Fund returned 5.85%.
The Small Cap Value Fund portfolio is designed to screen a large number of
companies based on two quantitative measures. We essentially look for small,
undervalued stocks that are highly likely to report a succession of positive
earnings surprises, uncovering companies with better than expected fundamentals
for our portfolio.
During the four-month period, the Fund had a 98% positive surprise rate for the
portfolio versus a 71% positive surprise rate for the Russell 2000 Index. With
respect to earnings estimate revisions, 89% of the Fund companies experienced
positive estimate revisions over the period vs. 52% for the Russell 2000 Index.
The U.S. stock markets continued to broaden in the second and third calendar
quarters of 1999. The markets remained volatile with all major indices falling
for the four-month period. Technology continued to lead the markets with the
NASDAQ Composite up over 24% while the NYSE Composite was flat for the year. The
mega-cap stocks that led the markets during 1998 and the first quarter of 1999
performed in-line with the rest of the markets, surrendering much of their
market leadership. Investors continue to prefer small cap growth stocks to small
cap value stocks, and the Russell 2000 Growth Index now leads the Russell 2000
Value Index by over 10% year to date. Our focus on stocks with the potential to
report significant positive earnings surprises worked well as positive earnings
surprise stocks outperformed negative earnings surprise stocks by 9% during the
four-month period.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH
SEPTEMBER 30, 1999. 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.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
PERFORMA SMALL CAP VALUE FUND ("FUND") VS. RUSSELL 2000 INDEX ("RUSSELL INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, since inception. The result is
compared with a broad-based securities market index. The Fund's total return
includes operating expenses that reduce returns, while the total return of the
Index does not. Total return of the Fund 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. 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 SEPTEMBER 30, 1999
------------------------
RUSSELL
I SHARES INDEX
-------- -----
<S> <C> <C>
ONE YEAR 14.37% 19.07%
SINCE INCEPTION (14.80%) (2.84%)
INCEPTION DATE 10/15/97 10/15/97
VALUE SEPTEMBER 30, 1999 $8,520 $9,451
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
I SHARES RUSSELL INDEX
<S> <C> <C>
10/15/97 $10,000 $10,000
10/31/97 $9,290 $9,371
11/30/97 $9,300 $9,310
12/31/97 $9,210 $9,473
1/31/98 $9,160 $9,324
2/28/98 $10,000 $10,013
3/31/98 $10,650 $10,426
4/30/98 $10,760 $10,484
5/31/98 $10,160 $9,919
6/30/98 $10,060 $9,940
7/31/98 $9,190 $9,135
8/31/98 $7,420 $7,361
9/30/98 $7,450 $7,937
10/31/98 $7,830 $8,261
11/30/98 $8,270 $8,694
12/31/98 $8,700 $9,232
1/31/99 $8,440 $9,355
2/28/99 $7,669 $8,597
3/31/99 $7,309 $8,731
4/30/99 $7,799 $9,514
5/31/99 $8,050 $9,653
6/30/99 $8,781 $10,089
7/31/99 $8,731 $9,812
8/31/99 $8,350 $9,449
9/30/99 $8,520 $9,451
</TABLE>
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.
[LOGO]
16
<PAGE>
INDEPENDENT AUDITORS' REPORT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders
Norwest Advantage Funds
We have audited the accompanying statements of assets and
liabilities of Strategic Income Fund, Moderate Balanced
Fund, Growth Balanced Fund, Aggressive Balanced-Equity
Fund, Index Fund, Income Equity Fund, Diversified Equity
Fund, Growth Equity Fund, Large Company Growth Fund,
Diversified Small Cap Fund, Small Cap Opportunities Fund,
Small Company Growth Fund and International Fund,
portfolios of Norwest Advantage Funds (collectively the
"Funds"), including the schedules of investments, as of
September 30, 1999, and the related statements of
operations for the periods presented on pages 20 to 24,
statements of changes in net assets for the periods
presented on pages 26 to 31, and financial highlights for
the periods presented on pages 32 to 39. These financial
statements and financial highlights are the responsibility
of the Funds' management. Our responsibility is to express
an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and
financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of
securities owned as of September 30, 1999, by
correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of the Funds as
of September 30, 1999, the results of their operations,
changes in their net assets and financial highlights for
each of the periods indicated in the paragraph above, in
conformity with generally accepted accounting principles.
/s/ KMPG LLP
------------------------
Boston, Massachusetts
November 18, 1999
[LOGO]
17
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE
STRATEGIC MODERATE GROWTH BALANCED-
INCOME BALANCED BALANCED EQUITY INDEX
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
ASSETS
Investments (Notes 1 and 2)
Investments at cost......... $246,677,918 $453,106,839 $728,740,007 $ 64,009,807 $424,098,418
Net unrealized
appreciation............ 20,414,369 94,624,212 197,680,563 759,819 393,852,391
------------ ------------ ------------ ------------ ------------
TOTAL INVESTMENTS AT VALUE... 267,092,287 547,731,051 926,420,570 64,769,626 817,950,809
Receivable for dividends,
interest and other
receivables.............. 1,093 278 2,352 - 11,979
Receivable for investments
sold..................... - - - - -
Receivable for Fund shares
issued................... 193,795 161,749 831,804 270,797 1,266,831
Organization costs, net of
amortization (Note 2).... 1,424 1,424 1,424 8,606 1,424
------------ ------------ ------------ ------------ ------------
TOTAL ASSETS.................. 267,288,599 547,894,502 927,256,150 65,049,029 819,231,043
------------ ------------ ------------ ------------ ------------
LIABILITIES
Payable for investments
purchased................ - - - - -
Dividends payable............ - - - - -
Payable for Fund shares
redeemed................. 39,199 1,120,488 435,952 3,771 5,296,564
Payable to adviser and
affiliates (Note 3)...... 68,108 166,514 275,794 17,045 21,984
Payable to other related
parties (Note 3)......... 3,950 8,877 15,616 3,034 5,657
Accrued expenses and other
liabilities.............. 18,884 28,711 67,863 14,252 45,480
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES............. 130,141 1,324,590 795,225 38,102 5,369,685
------------ ------------ ------------ ------------ ------------
NET ASSETS.................... $267,158,458 $546,569,912 $926,460,925 $ 65,010,927 $813,861,358
============ ============ ============ ============ ============
COMPONENTS OF NET ASSETS
Paid in capital.............. $230,155,985 $409,917,037 $659,817,359 $ 63,683,395 $408,098,208
Undistributed (distributions
in excess of) net
investment income........ 9,627,601 15,864,787 15,183,881 394,648 3,615,256
Accumulated net realized gain
(loss) from
investments.............. 6,960,503 26,163,876 53,779,122 173,065 8,295,503
Net unrealized appreciation
of investments........... 20,414,369 94,624,212 197,680,563 759,819 393,852,391
------------ ------------ ------------ ------------ ------------
NET ASSETS.................... $267,158,458 $546,569,912 $926,460,925 $ 65,010,927 $813,861,358
============ ============ ============ ============ ============
NET ASSETS BY SHARE CLASS
A Shares..................... $ - $ - $ 6,552,052 $ - $ -
B Shares..................... - - 11,966,703 - -
C Shares..................... - - 2,153,062 - -
I Shares..................... 267,158,458 546,569,912 905,789,108 65,010,927 813,861,358
------------ ------------ ------------ ------------ ------------
NET ASSETS.................... $267,158,458 $546,569,912 $926,460,925 $ 65,010,927 $813,861,358
============ ============ ============ ============ ============
SHARES OF BENEFICIAL INTEREST
A Shares..................... - - 200,458 - -
B Shares..................... - - 391,210 - -
C Shares..................... - - 70,254 - -
I Shares..................... 13,314,762 22,604,302 29,355,624 5,044,404 15,163,235
NET ASSET VALUE PER SHARE (Net
Assets Divided by Shares of
Beneficial Interest)
A Shares..................... $ - $ - $ 32.69 $ - $ -
B Shares..................... $ - $ - $ 30.59 $ - $ -
C Shares..................... $ - $ - $ 30.65 $ - $ -
I Shares..................... $ 20.06 $ 24.18 $ 30.86 $ 12.89 $ 53.67
OFFERING PRICE PER SHARE
(NAV/(1=Maximum Initial
Sales Load)
A Shares..................... $ - $ - $ 34.68 $ - $ -
B Shares..................... $ - $ - $ 30.59 $ - $ -
C Shares..................... $ - $ - $ 30.65 $ - $ -
I Shares..................... $ 20.06 $ 24.18 $ 30.86 $ 12.89 $ 53.67
MAXIMUM INITIAL SALES LOAD
A Shares..................... N/A N/A 5.75% N/A N/A
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
</TABLE>
See Notes to Financial Statements.
[LOGO]
18
<PAGE>
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL
INCOME DIVERSIFIED GROWTH COMPANY DIVERSIFIED CAP
EQUITY EQUITY EQUITY GROWTH SMALL CAP OPPORTUNITIES
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments (Notes 1 and 2)
Investments at cost......... $1,281,107,690 $1,386,050,332 $391,284,241 $1,023,857,676 $ 67,933,148 $202,899,342
Net unrealized
appreciation............ 418,507,672 702,718,352 289,120,192 166,439,171 1,153,346 8,362,781
-------------- -------------- ------------ -------------- ------------ ------------
TOTAL INVESTMENTS AT VALUE... 1,699,615,362 2,088,768,684 680,404,433 1,190,296,847 69,086,494 211,262,123
Receivable for dividends,
interest and other
receivables.............. - - 2,783 97,422 3,132 69,380
Receivable for investments
sold..................... - - - - - 2,267,474
Receivable for Fund shares
issued................... 3,124,347 1,522,265 7,578,338 5,648,793 227,951 249,581
Organization costs, net of
amortization (Note 2).... 1,424 1,424 1,424 1,424 2,275 -
-------------- -------------- ------------ -------------- ------------ ------------
TOTAL ASSETS.................. 1,702,741,133 2,090,292,373 687,986,978 1,196,044,486 69,319,852 213,848,558
-------------- -------------- ------------ -------------- ------------ ------------
LIABILITIES
Payable for investments
purchased................ - - - - - 5,181,803
Dividends payable............ 7,386 2,652 - - - -
Payable for Fund shares
redeemed................. 686,719 330,891 123,439 3,342,512 7,672 1,438,389
Payable to adviser and
affiliates (Note 3)...... 359,131 687,316 242,960 270,608 8,593 193,000
Payable to other related
parties (Note 3)......... 87,043 66,808 11,580 57,186 1,365 6,733
Accrued expenses and other
liabilities.............. 193,992 215,703 113,453 190,449 15,314 23,660
-------------- -------------- ------------ -------------- ------------ ------------
TOTAL LIABILITIES............. 1,334,271 1,303,370 491,432 3,860,755 32,944 6,843,585
-------------- -------------- ------------ -------------- ------------ ------------
NET ASSETS.................... $1,701,406,862 $2,088,989,003 $687,495,546 $1,192,183,731 $ 69,286,908 $207,004,973
============== ============== ============ ============== ============ ============
COMPONENTS OF NET ASSETS
Paid in capital.............. $1,241,464,337 $1,271,770,767 $301,370,516 $ 989,716,283 $ 70,097,710 $218,343,995
Undistributed (distributions
in excess of) net
investment income........ 620,427 8,237,731 (362,607) - - -
Accumulated net realized gain
(loss) from
investments.............. 40,814,426 106,262,153 97,367,445 36,028,277 (1,964,148) (19,701,803)
Net unrealized appreciation
of investments........... 418,507,672 702,718,352 289,120,192 166,439,171 1,153,346 8,362,781
-------------- -------------- ------------ -------------- ------------ ------------
NET ASSETS.................... $1,701,406,862 $2,088,989,003 $687,495,546 $1,192,183,731 $ 69,286,908 $207,004,973
============== ============== ============ ============== ============ ============
NET ASSETS BY SHARE CLASS
A Shares..................... $ 109,080,598 $ 70,623,765 $ 23,750,201 $ 188,889,967 $ 1,270,881 $ 7,632,709
B Shares..................... 118,791,916 113,873,861 19,210,637 201,350,895 557,345 4,089,290
C Shares..................... 2,124,165 2,017,772 319,997 - - -
I Shares..................... 1,471,410,183 1,902,473,605 644,214,711 801,942,869 67,458,682 195,282,974
-------------- -------------- ------------ -------------- ------------ ------------
NET ASSETS.................... $1,701,406,862 $2,088,989,003 $687,495,546 $1,192,183,731 $ 69,286,908 $207,004,973
============== ============== ============ ============== ============ ============
SHARES OF BENEFICIAL INTEREST
A Shares..................... 2,467,963 1,471,106 644,941 3,258,791 133,159 372,335
B Shares..................... 2,689,650 2,406,147 534,596 3,708,883 62,223 204,109
C Shares..................... 46,888 42,123 8,687 - - -
I Shares..................... 33,294,244 39,632,187 17,495,921 14,687,377 7,474,884 9,525,410
NET ASSET VALUE PER SHARE (Net
Assets Divided by Shares of
Beneficial Interest)
A Shares..................... $ 44.20 $ 48.01 $ 36.83 $ 57.96 $ 9.54 $ 20.50
B Shares..................... $ 44.17 $ 47.33 $ 35.93 $ 54.29 $ 8.96 $ 20.03
C Shares..................... $ 45.30 $ 47.90 $ 36.84 $ - $ - $ -
I Shares..................... $ 44.19 $ 48.00 $ 36.82 $ 54.60 $ 9.02 $ 20.50
OFFERING PRICE PER SHARE
(NAV/(1=Maximum Initial
Sales Load)
A Shares..................... $ 46.90 $ 50.94 $ 39.08 $ 61.50 $ 10.12 $ 21.75
B Shares..................... $ 44.17 $ 47.33 $ 35.93 $ 54.29 $ 8.96 $ 20.03
C Shares..................... $ 45.30 $ 47.90 $ 36.84 $ - $ - $ -
I Shares..................... $ 44.19 $ 48.00 $ 36.82 $ 54.60 $ 9.02 $ 20.50
MAXIMUM INITIAL SALES LOAD
A Shares..................... 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
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
<CAPTION>
SMALL
COMPANY
GROWTH INTERNATIONAL
FUND FUND
---- ----
<S> <C> <C>
ASSETS
Investments (Notes 1 and 2)
Investments at cost......... $509,147,632 $250,457,017
Net unrealized
appreciation............ 6,545,577 28,935,928
------------ ------------
TOTAL INVESTMENTS AT VALUE... 515,693,209 279,392,945
Receivable for dividends,
interest and other
receivables.............. 8,791 13,712
Receivable for investments
sold..................... - -
Receivable for Fund shares
issued................... 126,540 342,941
Organization costs, net of
amortization (Note 2).... 1,424 1,424
------------ ------------
TOTAL ASSETS.................. 515,829,964 279,751,022
------------ ------------
LIABILITIES
Payable for investments
purchased................ - -
Dividends payable............ - 48
Payable for Fund shares
redeemed................. 324,347 404,134
Payable to adviser and
affiliates (Note 3)...... 108,724 172,760
Payable to other related
parties (Note 3)......... 19,721 15,065
Accrued expenses and other
liabilities.............. 84,925 25,232
------------ ------------
TOTAL LIABILITIES............. 537,717 617,239
------------ ------------
NET ASSETS.................... $515,292,247 $279,133,783
============ ============
COMPONENTS OF NET ASSETS
Paid in capital.............. $536,579,449 $220,945,257
Undistributed (distributions
in excess of) net
investment income........ - 636,425
Accumulated net realized gain
(loss) from
investments.............. (27,832,779) 28,616,173
Net unrealized appreciation
of investments........... 6,545,577 28,935,928
------------ ------------
NET ASSETS.................... $515,292,247 $279,133,783
============ ============
NET ASSETS BY SHARE CLASS
A Shares..................... $ - $ 2,725,625
B Shares..................... - 1,960,468
C Shares..................... - -
I Shares..................... 515,292,247 274,447,690
------------ ------------
NET ASSETS.................... $515,292,247 $279,133,783
============ ============
SHARES OF BENEFICIAL INTEREST
A Shares..................... - 114,870
B Shares..................... - 83,295
C Shares..................... - -
I Shares..................... 19,065,559 11,559,493
NET ASSET VALUE PER SHARE (Net
Assets Divided by Shares of
Beneficial Interest)
A Shares..................... $ - $ 23.73
B Shares..................... $ - $ 23.54
C Shares..................... $ - $ -
I Shares..................... $ 27.03 $ 23.74
OFFERING PRICE PER SHARE
(NAV/(1=Maximum Initial
Sales Load)
A Shares..................... $ - $ 25.18
B Shares..................... $ - $ 23.54
C Shares..................... $ - $ -
I Shares..................... $ 27.03 $ 23.74
MAXIMUM INITIAL SALES LOAD
A Shares..................... N/A 5.75%
B Shares..................... N/A N/A
C Shares..................... N/A N/A
I Shares..................... N/A N/A
</TABLE>
[LOGO]
19
<PAGE>
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC MODERATE
INCOME BALANCED
FUND FUND
-------------------------------- --------------------------------
FOUR MONTHS YEAR FOUR MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999
------------------ ------------ ------------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (b)..... $ 4,362,136 $11,917,763 $ 6,842,988 $17,568,829
Dividend
income (a)(b)......... 228,891 714,516 935,027 2,631,109
Securities lending
income
(b) (Note 2).......... 11,493 56,897 26,263 120,893
Net expenses from
Portfolios
(Note 1).............. (373,931) (1,051,138) (866,871) (2,325,854)
----------- ----------- ------------ -----------
TOTAL INVESTMENT
INCOME................ 4,228,589 11,638,038 6,937,407 17,994,977
----------- ----------- ------------ -----------
EXPENSES
Advisory (Note 3)....... 224,032 631,949 458,542 1,226,997
Management and
Administration
(Note 3).............. 44,806 126,390 91,708 245,400
Transfer agent (Note 3)
A Shares............... - - - -
B Shares............... - - - -
C Shares............... - - - -
I Shares............... 224,032 631,949 458,542 1,226,997
Custody (Note 3)........ - - - -
Accounting (Note 3)..... 4,000 13,500 4,000 13,500
Legal (Note 3).......... 1,329 3,423 2,707 6,701
Registration
A Shares............... - - - -
B Shares............... - - - -
C Shares............... - - - -
I Shares............... 3,335 17,858 4,229 23,191
Audit................... 8,000 5,900 8,000 5,900
Trustees................ 1,248 2,942 2,526 5,720
Distribution fees
(Note 3)
A Shares............... - - - -
B Shares............... - - - -
C Shares............... - - - -
Amortization of
organization costs
(Note 2).............. 3,973 11,920 3,973 11,920
Miscellaneous........... 8,703 16,054 17,614 30,265
----------- ----------- ------------ -----------
TOTAL EXPENSES........... 523,458 1,461,885 1,051,841 2,796,591
Fees waived and
expenses reimbursed
(Note 3)............. (180,549) (490,307) (304,942) (802,405)
----------- ----------- ------------ -----------
NET EXPENSES............. 342,909 971,578 746,899 1,994,186
----------- ----------- ------------ -----------
NET INVESTMENT INCOME
(LOSS)................. 3,885,680 10,666,460 6,190,508 16,000,791
----------- ----------- ------------ -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net Realized Gain
(Loss) from
Securities.......... - (2,343) - (8,784)
Financial futures
transactions...... - 3,540,118 - 13,331,731
Securities
transactions
allocated from
Portfolios
(Note 1).......... 1,178,755 4,694,013 5,904,209 15,930,048
Foreign currency
transactions
allocated from
Portfolios........ (9,749) (31,035) (41,809) (106,679)
Financial futures
transactions
allocated from
Portfolios........ 65,902 67,868 272,241 299,801
----------- ----------- ------------ -----------
Net Realized Gain
(Loss) from
Investments......... 1,234,908 8,268,621 6,134,641 29,446,117
----------- ----------- ------------ -----------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Securities.......... - - - -
Securities
transactions
allocated from
Portfolios
(Note 1).......... (3,923,206) 1,531,709 (11,753,901) 11,363,760
Foreign currency
transactions
allocated from
Portfolios........ (21,440) (11,396) (91,846) (37,076)
Financial futures
transactions
allocated from
Portfolios........ (43,999) (31,526) (184,010) (171,836)
----------- ----------- ------------ -----------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Investments......... (3,988,645) 1,488,787 (12,029,757) 11,154,848
----------- ----------- ------------ -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... (2,753,737) 9,757,408 (5,895,116) 40,600,965
----------- ----------- ------------ -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ 1,131,943 $20,423,868 $ 295,392 $56,601,756
=========== =========== ============ ===========
(a) Net of foreign
withholding taxes of... $ 7,525 $ 21,577 $ 31,429 $ 80,462
(b) Investment income
includes amounts
allocated from
Portfolios where
applicable.
</TABLE>
See Notes to Financial Statements.
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20
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE
GROWTH BALANCED -
BALANCED EQUITY INDEX
FUND FUND FUND
-------------------------------- -------------------------------- --------------------------------
FOUR MONTHS YEAR FOUR MONTHS YEAR FOUR MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999
------------------ ------------ ------------------ ------------ ------------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (b)..... $ 6,448,796 $16,505,856 $ 264,286 $ 209,487 $ 465,662 $ 1,094,667
Dividend
income (a)(b)......... 2,631,533 6,214,559 190,136 175,067 3,869,575 13,004,697
Securities lending
income
(b) (Note 2).......... 46,845 186,803 3,002 3,917 50,371 246,367
Net expenses from
Portfolios
(Note 1).............. (1,602,948) (3,820,678) (105,222) (89,251) (545,756) (1,675,812)
------------ ------------ ----------- ---------- ----------- ------------
TOTAL INVESTMENT
INCOME................ 7,524,226 19,086,540 352,202 299,220 3,839,852 12,669,919
------------ ------------ ----------- ---------- ----------- ------------
EXPENSES
Advisory (Note 3)....... 763,870 1,854,353 48,299 41,549 - -
Management and
Administration
(Note 3).............. 152,774 370,872 9,660 8,310 154,068 469,798
Transfer agent (Note 3)
A Shares............... 9,356 4,892 - - - -
B Shares............... 9,197 6,382 - - - -
C Shares............... 1,315 549 - - - -
I Shares............... 748,680 1,844,286 48,299 41,549 770,340 2,348,992
Custody (Note 3)........ - - - - - -
Accounting (Note 3)..... 16,000 37,501 4,000 13,500 4,000 13,500
Legal (Note 3).......... 4,756 14,489 286 195 31,160 12,055
Registration
A Shares............... 3,139 6,176 - - - -
B Shares............... 6,004 7,363 - - - -
C Shares............... 2,999 5,589 - - - -
I Shares............... 6,494 42,856 4,262 12,914 5,669 68,017
Audit................... 8,000 5,900 8,000 7,200 8,000 5,900
Trustees................ 4,181 8,472 214 157 4,846 10,463
Distribution fees
(Note 3)
A Shares............... 1,871 1,254 - - - -
B Shares............... 36,789 25,528 - - - -
C Shares............... 3,946 1,648 - - - -
Amortization of
organization costs
(Note 2).............. 3,973 11,920 905 2,715 3,973 11,920
Miscellaneous........... 29,913 58,370 1,562 1,499 11,963 53,648
------------ ------------ ----------- ---------- ----------- ------------
TOTAL EXPENSES........... 1,813,257 4,308,400 125,487 129,588 994,019 2,994,293
Fees waived and
expenses reimbursed
(Note 3)............. (530,193) (1,202,580) (37,533) (52,858) (769,531) (2,321,188)
------------ ------------ ----------- ---------- ----------- ------------
NET EXPENSES............. 1,283,064 3,105,820 87,954 76,730 224,488 673,105
------------ ------------ ----------- ---------- ----------- ------------
NET INVESTMENT INCOME
(LOSS)................. 6,241,162 15,980,720 264,248 222,490 3,615,364 11,996,814
------------ ------------ ----------- ---------- ----------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net Realized Gain
(Loss) from
Securities.......... - (18,548) - 402 - -
Financial futures
transactions...... - 28,062,285 - 495,617 - -
Securities
transactions
allocated from
Portfolios
(Note 1).......... 13,599,721 26,493,420 (43,198) (324,561) 6,903,444 9,587,955
Foreign currency
transactions
allocated from
Portfolios........ (123,445) (255,086) (9,857) (8,671) - -
Financial futures
transactions
allocated from
Portfolios........ 534,961 552,469 181,170 (121,597) 1,099,326 2,255,784
------------ ------------ ----------- ---------- ----------- ------------
Net Realized Gain
(Loss) from
Investments......... 14,011,237 54,834,540 128,115 41,190 8,002,770 11,843,739
------------ ------------ ----------- ---------- ----------- ------------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Securities.......... - - - - - -
Securities
transactions
allocated from
Portfolios
(Note 1).......... (23,789,094) 41,409,045 (1,977,614) 2,244,957 (1,029,204) 152,178,601
Foreign currency
transactions
allocated from
Portfolios........ (277,441) (13,976) (22,132) 5,935 - -
Financial futures
transactions
allocated from
Portfolios........ (292,298) (247,999) 10,317 134,957 (94,870) 153,150
------------ ------------ ----------- ---------- ----------- ------------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Investments......... (24,358,833) 41,147,070 (1,989,429) 2,385,849 (1,124,074) 152,331,751
------------ ------------ ----------- ---------- ----------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... (10,347,596) 95,981,610 (1,861,314) 2,427,039 6,878,696 164,175,490
------------ ------------ ----------- ---------- ----------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ (4,106,434) $111,962,330 $(1,597,066) $2,649,529 $10,494,060 $176,172,304
============ ============ =========== ========== =========== ============
(a) Net of foreign
withholding taxes of... $ 92,048 $ 193,325 $ 7,480 $ 5,845 $ - $ -
(b) Investment income
includes amounts
allocated from
Portfolios where
applicable.
<CAPTION>
INCOME
EQUITY
FUND
--------------------------------
FOUR MONTHS YEAR
ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999
------------------ ------------
<S> <C> <C>
INVESTMENT INCOME
Interest income (b)..... $ 894,082 $ 1,414,305
Dividend
income (a)(b)......... 10,714,345 29,415,238
Securities lending
income
(b) (Note 2).......... 86,924 201,664
Net expenses from
Portfolios
(Note 1).............. (3,199,622) (8,178,939)
------------- ------------
TOTAL INVESTMENT
INCOME................ 8,495,729 22,852,268
------------- ------------
EXPENSES
Advisory (Note 3)....... - -
Management and
Administration
(Note 3).............. 297,582 747,064
Transfer agent (Note 3)
A Shares............... 92,871 218,651
B Shares............... 97,651 209,221
C Shares............... 1,387 503
I Shares............... 1,295,996 3,306,949
Custody (Note 3)........ - -
Accounting (Note 3)..... 16,000 45,500
Legal (Note 3).......... 10,048 24,988
Registration
A Shares............... 3,623 13,482
B Shares............... 3,717 13,888
C Shares............... 4,052 5,482
I Shares............... 7,527 53,865
Audit................... 8,000 5,900
Trustees................ 8,298 17,104
Distribution fees
(Note 3)
A Shares............... - -
B Shares............... 390,602 836,884
C Shares............... 4,162 1,509
Amortization of
organization costs
(Note 2).............. 3,973 11,920
Miscellaneous........... 31,666 176,581
------------- ------------
TOTAL EXPENSES........... 2,277,155 5,689,491
Fees waived and
expenses reimbursed
(Note 3)............. (119,217) (541,616)
------------- ------------
NET EXPENSES............. 2,157,938 5,147,875
------------- ------------
NET INVESTMENT INCOME
(LOSS)................. 6,337,791 17,704,393
------------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net Realized Gain
(Loss) from
Securities.......... - -
Financial futures
transactions...... - -
Securities
transactions
allocated from
Portfolios
(Note 1).......... 37,939,911 7,349,243
Foreign currency
transactions
allocated from
Portfolios........ - -
Financial futures
transactions
allocated from
Portfolios........ - -
------------- ------------
Net Realized Gain
(Loss) from
Investments......... 37,939,911 7,349,243
------------- ------------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Securities.......... - -
Securities
transactions
allocated from
Portfolios
(Note 1).......... (119,421,858) 197,583,941
Foreign currency
transactions
allocated from
Portfolios........ - -
Financial futures
transactions
allocated from
Portfolios........ - -
------------- ------------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Investments......... (119,421,858) 197,583,941
------------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... (81,481,947) 204,933,184
------------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ (75,144,156) $222,637,577
============= ============
(a) Net of foreign
withholding taxes of... $ - $ -
(b) Investment income
includes amounts
allocated from
Portfolios where
applicable.
</TABLE>
[LOGO]
21
<PAGE>
STATEMENTS OF OPERATIONS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED GROWTH
EQUITY EQUITY
FUND FUND
-------------------------------- --------------------------------
FOUR MONTHS YEAR FOUR MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999
------------------ ------------ ------------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (b)..... $ 1,172,697 $ 3,162,860 $ 488,365 $ 2,887,005
Dividend
income (a)(b)......... 8,878,508 21,348,564 2,818,988 8,201,197
Securities lending
income
(b) (Note 2).......... 109,456 415,781 41,789 289,867
Net expenses from
Portfolios
(Note 1).............. (4,043,909) (9,503,595) (2,040,030) (7,370,526)
------------ ------------ ------------ -----------
TOTAL INVESTMENT
INCOME................ 6,116,752 15,423,610 1,309,112 4,007,543
------------ ------------ ------------ -----------
EXPENSES
Advisory (Note 3)....... 1,762,369 4,237,011 646,153 2,425,572
Management and
Administration
(Note 3).............. 352,474 847,404 129,230 485,114
Transfer agent (Note 3)
A Shares............... 60,211 154,548 16,306 46,374
B Shares............... 97,279 238,513 16,458 43,863
C Shares............... 1,071 415 183 68
I Shares............... 1,603,809 3,843,535 613,206 2,335,267
Custody (Note 3)........ - - - -
Accounting (Note 3)..... 16,000 45,500 16,000 45,500
Legal (Note 3).......... 25,504 30,324 10,793 16,341
Registration
A Shares............... 3,401 8,451 2,673 5,221
B Shares............... 3,616 11,992 2,653 5,647
C Shares............... 3,005 5,356 2,988 5,248
I Shares............... 12,136 25,650 4,403 21,324
Audit................... 8,000 5,900 8,000 5,900
Trustees................ 9,287 20,021 4,049 11,911
Distribution fees
(Note 3)
A Shares............... - - - -
B Shares............... 389,116 954,051 65,831 175,451
C Shares............... 3,212 1,246 549 204
Amortization of
organization costs
(Note 2).............. 3,973 11,921 3,973 11,920
Miscellaneous........... 66,891 182,080 11,449 91,352
------------ ------------ ------------ -----------
TOTAL EXPENSES........... 4,421,354 10,623,918 1,554,897 5,732,277
Fees waived and
expenses reimbursed
(Note 3)............. (1,120,128) (2,463,311) (314,370) (839,114)
------------ ------------ ------------ -----------
NET EXPENSES............. 3,301,226 8,160,607 1,240,527 4,893,163
------------ ------------ ------------ -----------
NET INVESTMENT INCOME
(LOSS)................. 2,815,526 7,263,003 68,585 (885,620)
------------ ------------ ------------ -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net Realized Gain
(Loss) from
Securities.......... - - - -
Financial futures
transactions...... - - - -
Securities
transactions
allocated from
Portfolios
(Note 1).......... 47,375,040 68,677,749 42,477,806 66,680,075
Foreign currency
transactions
allocated from
Portfolios........ (432,045) (917,082) (272,198) (948,677)
Financial futures
transactions
allocated from
Portfolios........ 1,801,184 1,674,322 235,748 (312,231)
------------ ------------ ------------ -----------
Net Realized Gain
(Loss) from
Investments......... 48,744,179 69,434,989 42,441,356 65,419,167
------------ ------------ ------------ -----------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Securities.......... - - - -
Securities
transactions
allocated from
Portfolios
(Note 1).......... (77,191,409) 155,956,095 (12,178,754) 4,819,250
Foreign currency
transactions
allocated from
Portfolios........ (940,339) 8,502 (596,805) (219,223)
Financial futures
transactions
allocated from
Portfolios........ (923,615) (805,642) (62,463) 156,336
------------ ------------ ------------ -----------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Investments......... (79,055,363) 155,158,955 (12,838,022) 4,756,363
------------ ------------ ------------ -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... (30,311,184) 224,593,944 29,603,334 70,175,530
------------ ------------ ------------ -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $(27,495,658) $231,856,947 $ 29,671,919 $69,289,910
============ ============ ============ ===========
(a) Net of foreign
withholding taxes of... $ 310,900 $ 658,680 $ 197,201 $ 762,717
(b) Investment income
includes amounts
allocated from
Portfolios where
applicable.
</TABLE>
See Notes to Financial Statements.
[LOGO]
22
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL
COMPANY DIVERSIFIED CAP
GROWTH SMALL CAP OPPORTUNITIES
FUND FUND FUND
-------------------------------- -------------------------------- --------------------------------
FOUR MONTHS YEAR FOUR MONTHS YEAR FOUR MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999
------------------ ------------ ------------------ ------------ ------------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (b)..... $ 699,847 $ 754,159 $ 41,576 $ 101,753 $ 250,187 $ 589,988
Dividend
income (a)(b)......... 1,616,174 1,858,536 184,179 288,874 328,715 1,297,606
Securities lending
income
(b) (Note 2).......... 44,823 146,392 4,508 11,002 - -
Net expenses from
Portfolios
(Note 1).............. (2,648,048) (3,760,435) (198,840) (308,897) - (1,853,798)
------------ ------------ ----------- ---------- ------------ ------------
TOTAL INVESTMENT
INCOME................ (287,204) (1,001,348) 31,423 92,732 578,902 33,796
------------ ------------ ----------- ---------- ------------ ------------
EXPENSES
Advisory (Note 3)....... - - 56,411 87,077 429,953 -
Management and
Administration
(Note 3).............. 192,914 266,452 11,282 17,416 250,805 726,099
Transfer agent (Note 3)
A Shares............... 333,240 294,538 2,424 4,766 6,591 14,131
B Shares............... 155,772 101,712 474 450 3,546 12,198
C Shares............... - - - - - -
I Shares............... 642,176 1,041,740 54,725 83,572 169,010 578,754
Custody (Note 3)........ - - - - 12,166 -
Accounting (Note 3)..... 12,000 29,499 12,000 29,500 24,000 37,501
Legal (Note 3).......... 10,660 156,414 326 518 1,078 3,767
Registration
A Shares............... 5,992 49,144 3,104 5,707 3,147 5,267
B Shares............... 5,857 41,836 3,091 5,444 2,592 5,378
C Shares............... - - - - - -
I Shares............... 8,021 85,397 4,505 19,482 4,024 12,509
Audit................... 8,000 5,900 8,000 5,900 16,000 5,900
Trustees................ 5,023 4,772 302 318 1,000 3,121
Distribution fees
(Note 3)
A Shares............... 66,648 75,523 485 1,222 - -
B Shares............... 623,089 406,848 1,895 1,800 14,184 48,792
C Shares............... - - - - - -
Amortization of
organization costs
(Note 2).............. 3,973 11,920 229 687 - -
Miscellaneous........... 42,839 48,588 2,191 3,135 5,516 24,337
------------ ------------ ----------- ---------- ------------ ------------
TOTAL EXPENSES........... 2,116,204 2,620,283 161,444 266,994 943,612 1,477,754
Fees waived and
expenses reimbursed
(Note 3)............. (312,811) (591,488) (86,781) (154,479) (37,654) (267,522)
------------ ------------ ----------- ---------- ------------ ------------
NET EXPENSES............. 1,803,393 2,028,795 74,663 112,515 905,958 1,210,232
------------ ------------ ----------- ---------- ------------ ------------
NET INVESTMENT INCOME
(LOSS)................. (2,090,597) (3,030,143) (43,240) (19,783) (327,056) (1,176,436)
------------ ------------ ----------- ---------- ------------ ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net Realized Gain
(Loss) from
Securities.......... - - - - 11,287,621 -
Financial futures
transactions...... - - - - - -
Securities
transactions
allocated from
Portfolios
(Note 1).......... 3,410,766 38,470,599 2,089,329 (4,168,370) - (30,744,151)
Foreign currency
transactions
allocated from
Portfolios........ - - - - - -
Financial futures
transactions
allocated from
Portfolios........ - - 129,182 75,661 - -
------------ ------------ ----------- ---------- ------------ ------------
Net Realized Gain
(Loss) from
Investments......... 3,410,766 38,470,599 2,218,511 (4,092,709) 11,287,621 (30,744,151)
------------ ------------ ----------- ---------- ------------ ------------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Securities.......... - - - - (10,960,300) -
Securities
transactions
allocated from
Portfolios
(Note 1).......... (21,396,941) 110,679,616 (2,159,373) 3,586,957 - (11,334,217)
Foreign currency
transactions
allocated from
Portfolios........ - - - - - -
Financial futures
transactions
allocated from
Portfolios........ - - (92,925) 8,309 - -
------------ ------------ ----------- ---------- ------------ ------------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Investments......... (21,396,941) 110,679,616 (2,252,298) 3,595,266 (10,960,300) (11,334,217)
------------ ------------ ----------- ---------- ------------ ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... (17,986,175) 149,150,215 (33,787) (497,443) 327,321 (42,078,368)
------------ ------------ ----------- ---------- ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $(20,076,772) $146,120,072 $ (77,027) $ (517,226) $ 265 $(43,254,804)
============ ============ =========== ========== ============ ============
(a) Net of foreign
withholding taxes of... $ - $ - $ - $ - $ - $ -
(b) Investment income
includes amounts
allocated from
Portfolios where
applicable.
<CAPTION>
SMALL
COMPANY
GROWTH
FUND
--------------------------------
FOUR MONTHS YEAR
ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999
------------------ ------------
<S> <C> <C>
INVESTMENT INCOME
Interest income (b)..... $ 421,456 $ 1,760,891
Dividend
income (a)(b)......... 900,948 2,508,977
Securities lending
income
(b) (Note 2).......... 2,488 -
Net expenses from
Portfolios
(Note 1).............. (1,725,374) (5,748,442)
------------ ------------
TOTAL INVESTMENT
INCOME................ (400,482) (1,478,574)
------------ ------------
EXPENSES
Advisory (Note 3)....... - -
Management and
Administration
(Note 3).............. 91,314 293,016
Transfer agent (Note 3)
A Shares............... - -
B Shares............... - -
C Shares............... - -
I Shares............... 456,574 1,465,079
Custody (Note 3)........ - -
Accounting (Note 3)..... 4,000 13,500
Legal (Note 3).......... 2,558 8,751
Registration
A Shares............... - -
B Shares............... - -
C Shares............... - -
I Shares............... 4,031 16,032
Audit................... 8,000 5,900
Trustees................ 2,583 7,587
Distribution fees
(Note 3)
A Shares............... - -
B Shares............... - -
C Shares............... - -
Amortization of
organization costs
(Note 2).............. 3,973 11,920
Miscellaneous........... 7,088 29,875
------------ ------------
TOTAL EXPENSES........... 580,121 1,851,660
Fees waived and
expenses reimbursed
(Note 3)............. (22,402) (276,838)
------------ ------------
NET EXPENSES............. 557,719 1,574,822
------------ ------------
NET INVESTMENT INCOME
(LOSS)................. (958,201) (3,053,396)
------------ ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net Realized Gain
(Loss) from
Securities.......... - -
Financial futures
transactions...... - -
Securities
transactions
allocated from
Portfolios
(Note 1).......... 44,116,954 (72,079,150)
Foreign currency
transactions
allocated from
Portfolios........ - -
Financial futures
transactions
allocated from
Portfolios........ - -
------------ ------------
Net Realized Gain
(Loss) from
Investments......... 44,116,954 (72,079,150)
------------ ------------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Securities.......... - -
Securities
transactions
allocated from
Portfolios
(Note 1).......... (50,976,516) (11,124,316)
Foreign currency
transactions
allocated from
Portfolios........ - -
Financial futures
transactions
allocated from
Portfolios........ - -
------------ ------------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Investments......... (50,976,516) (11,124,316)
------------ ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... (6,859,562) (83,203,466)
------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ (7,817,763) $(86,256,862)
============ ============
(a) Net of foreign
withholding taxes of... $ - $ -
(b) Investment income
includes amounts
allocated from
Portfolios where
applicable.
</TABLE>
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23
<PAGE>
STATEMENTS OF OPERATIONS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
FUND
--------------------------------
FOUR MONTHS YEAR
ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999
------------------ ------------
<S> <C> <C>
INVESTMENT INCOME
Interest income (b)..... $ 239,620 $ 1,313,316
Dividend
income (a)(b)......... 2,004,431 3,878,954
Securities lending
income
(b) (Note 2).......... 17,500 78,030
Net expenses from
Portfolios
(Note 1).............. (586,113) (1,665,744)
----------- ------------
TOTAL INVESTMENT
INCOME................ 1,675,438 3,604,556
----------- ------------
EXPENSES
Advisory (Note 3)....... 235,410 680,154
Management and
Administration
(Note 3).............. 329,574 952,216
Transfer agent (Note 3)
A Shares............... 2,385 8,216
B Shares............... 1,618 5,053
C Shares............... - -
I Shares............... 231,407 666,885
Custody (Note 3)........ - -
Accounting (Note 3)..... 12,000 37,500
Legal (Note 3).......... 1,575 5,111
Registration
A Shares............... 2,086 4,846
B Shares............... 2,081 4,697
C Shares............... - -
I Shares............... 3,326 19,005
Audit................... 8,000 5,901
Trustees................ 1,323 3,276
Distribution fees
(Note 3)
A Shares............... - -
B Shares............... 6,474 20,211
C Shares............... - -
Amortization of
organization costs
(Note 2).............. 3,973 11,920
Miscellaneous........... 4,001 23,050
----------- ------------
TOTAL EXPENSES........... 845,233 2,448,041
Fees waived and
expenses reimbursed
(Note 3)............. (13,725) (17,031)
----------- ------------
NET EXPENSES............. 831,508 2,431,010
----------- ------------
NET INVESTMENT INCOME
(LOSS)................. 843,930 1,173,546
----------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net Realized Gain
(Loss) from
Securities.......... - -
Financial futures
transactions....... - -
Securities
transactions
allocated from
Portfolios
(Note 1)........... 11,806,822 20,970,144
Foreign currency
transactions
allocated from
Portfolios......... (465,190) (998,535)
Financial futures
transactions
allocated from
Portfolios......... - -
----------- ------------
Net Realized Gain
(Loss) from
Investments......... 11,341,632 19,971,609
----------- ------------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Securities.......... - -
Securities
transactions
allocated from
Portfolios
(Note 1)........... 306,017 (25,830,198)
Foreign currency
transactions
allocated from
Portfolios......... (1,054,429) 135,015
Financial futures
transactions
allocated from
Portfolios......... - -
----------- ------------
Net Change in
Unrealized
Appreciation
(Depreciation) of
Investments......... (748,412) (25,695,183)
----------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 10,593,220 (5,723,574)
----------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $11,437,150 $ (4,550,028)
=========== ============
(a) Net of foreign
withholding taxes of... $ 287,053 $ 715,009
(b) Investment income
includes amounts
allocated from
Portfolios where
applicable.
</TABLE>
See Notes to Financial Statements.
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24
<PAGE>
(This page has been left blank intentionally.)
25
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE
STRATEGIC MODERATE GROWTH BALANCED-
INCOME BALANCED BALANCED EQUITY INDEX
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1997..... $128,776,505 $418,680,237 $503,381,834 $ - $ 513,133,896
------------ ------------ ------------ ------------ --------------
OPERATIONS
Net investment income
(loss)................... 8,023,294 15,432,913 13,920,148 38,274 9,345,367
Net realized gain (loss) from
investments.............. 4,184,600 17,195,477 28,958,690 (12,436) 16,642,265
Net change in unrealized
appreciation
(depreciation) of
investments.............. 10,832,943 34,970,001 67,300,551 363,399 127,124,443
------------ ------------ ------------ ------------ --------------
Net increase (decrease) in
net assets resulting from
operations............... 23,040,837 67,598,391 110,179,389 389,237 153,112,075
------------ ------------ ------------ ------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... (6,121,616) (16,103,820) (13,409,934) (1,203) (9,056,077)
Net realized gain on
investments
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... (4,067,109) (22,560,420) (25,716,573) - (48,844,415)
------------ ------------ ------------ ------------ --------------
Total distributions to
shareholders............. (10,188,725) (38,664,240) (39,126,507) (1,203) (57,900,492)
------------ ------------ ------------ ------------ --------------
NET INCREASE FROM CAPITAL
SHARE TRANSACTIONS........ 93,625,220 16,769,347 91,323,239 8,483,835 175,859,934
------------ ------------ ------------ ------------ --------------
NET INCREASE IN NET ASSETS.... 106,477,332 45,703,498 162,376,121 8,871,869 271,071,517
------------ ------------ ------------ ------------ --------------
NET ASSETS - MAY 31, 1998
(a)(d).................... 235,253,837 464,383,735 665,757,955 8,871,869 784,205,413
------------ ------------ ------------ ------------ --------------
OPERATIONS
Net investment income
(loss)................... 10,666,460 16,000,791 15,980,720 222,490 11,996,814
Net realized gain (loss) from
investments.............. 8,268,621 29,446,117 54,834,540 41,190 11,843,739
Net change in unrealized
appreciation
(depreciation) of
investments.............. 1,488,787 11,154,848 41,147,070 2,385,849 152,331,751
------------ ------------ ------------ ------------ --------------
Net increase (decrease) in
net assets resulting from
operations............... 20,423,868 56,601,756 111,962,330 2,649,529 176,172,304
------------ ------------ ------------ ------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... - - (19,084) - -
B Shares.................... - - (30,335) - -
C Shares.................... - - (474) - -
I Shares.................... (10,430,421) (15,305,998) (14,247,665) (109,099) (9,565,947)
Net realized gain on
investments
A Shares.................... - - (33,896) - -
B Shares.................... - - (56,634) - -
C Shares.................... - - (842) - -
I Shares.................... (4,560,949) (15,882,796) (25,305,527) - (8,472,998)
------------ ------------ ------------ ------------ --------------
Total distributions to
shareholders............. (14,991,370) (31,188,794) (39,694,457) (109,099) (18,038,945)
------------ ------------ ------------ ------------ --------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 22,641,392 37,895,943 126,358,425 20,562,593 211,950,373
------------ ------------ ------------ ------------ --------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 28,073,890 63,308,905 198,626,298 23,103,023 370,083,732
------------ ------------ ------------ ------------ --------------
NET ASSETS - MAY 31, 1999
(b)....................... 263,327,727 527,692,640 864,384,253 31,974,892 1,154,289,145
------------ ------------ ------------ ------------ --------------
OPERATIONS:
Net investment income
(loss)................... 3,885,680 6,190,508 6,241,162 264,248 3,615,364
Net realized gain from
investments.............. 1,234,908 6,134,641 14,011,237 128,115 8,002,770
Net change in unrealized
depreciation of
investments.............. (3,988,645) (12,029,757) (24,358,833) (1,989,429) (1,124,074)
------------ ------------ ------------ ------------ --------------
Net increase (decrease) in
net assets resulting from
operations............... 1,131,943 295,392 (4,106,434) (1,597,066) 10,494,060
------------ ------------ ------------ ------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... - - - - -
B Shares.................... - - - - -
C Shares.................... - - - - -
I Shares.................... - - - - (7,598,355)
Net realized gain on
investments
A Shares.................... - - - - -
B Shares.................... - - - - -
C Shares.................... - - - - -
I Shares.................... - - - - (5,815,851)
------------ ------------ ------------ ------------ --------------
Total distributions to
shareholders............. - - - - (13,414,206)
------------ ------------ ------------ ------------ --------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 2,698,788 18,581,880 66,183,106 34,633,101 (337,507,641)
------------ ------------ ------------ ------------ --------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 3,830,731 18,877,272 62,076,672 33,036,035 (340,427,787)
------------ ------------ ------------ ------------ --------------
NET ASSETS - SEPTEMBER 30,
1999 (c).................. $267,158,458 $546,569,912 $926,460,925 $ 65,010,927 $ 813,861,358
============ ============ ============ ============ ==============
(a) Undistributed
(distributions in excess
of) net investment income,
May 31, 1998.............. $ 5,557,090 $ 9,151,144 $ 7,652,666 $ 35,981 $ 5,167,381
============ ============ ============ ============ ==============
(b) Undistributed
(distributions in excess
of) net investment income,
May 31, 1999.............. $ 5,754,159 $ 9,719,677 $ 9,068,551 $ 140,266 $ 7,598,247
============ ============ ============ ============ ==============
(c) Undistributed
(distributions in excess
of) net investment income,
September 30, 1999........ $ 9,627,601 $ 15,864,787 $ 15,183,881 $ 394,648 $ 3,615,256
============ ============ ============ ============ ==============
(d) Beginning of period....... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Dec 2, 1997 Jun 1, 1997
</TABLE>
See Notes to Financial Statements.
[LOGO]
26
<PAGE>
FOR THE YEARS OR PERIODS ENDED MAY 31, 1998, MAY 31, 1999 AND SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE
COMPANY DIVERSIFIED SMALL CAP
INCOME DIVERSIFIED GROWTH GROWTH SMALL CAP OPPORTUNITIES
EQUITY FUND EQUITY FUND EQUITY FUND FUND FUND FUND
----------- ----------- ----------- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1997..... $ 502,531,239 $1,271,706,512 $ 918,279,219 $ 131,768,093 $ - $ 77,854,351
-------------- -------------- -------------- -------------- ------------ ------------
OPERATIONS
Net investment income
(loss)................... 14,251,745 8,475,282 (1,202,479) (644,393) (5,731) (791,599)
Net realized gain (loss) from
investments.............. 12,683,426 90,735,628 124,921,732 13,678,786 (98,200) 4,160,372
Net change in unrealized
appreciation
(depreciation) of
investments.............. 217,868,488 236,638,160 79,116,165 33,488,238 (189,624) 23,475,868
-------------- -------------- -------------- -------------- ------------ ------------
Net increase (decrease) in
net assets resulting from
operations............... 244,803,659 335,849,070 202,835,418 46,522,631 (293,555) 26,844,641
-------------- -------------- -------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... (804,582) (276,764) (21,720) - - -
B Shares.................... (283,201) (113,973) - - - -
I Shares.................... (11,749,514) (9,474,703) (1,101,414) - - -
Net realized gain on
investments
A Shares.................... (1,048,454) (2,253,590) (1,880,012) - - (76,723)
B Shares.................... (850,000) (3,232,355) (1,221,598) - - (45,659)
I Shares.................... (13,660,767) (78,384,186) (95,402,591) (12,167,899) - (4,293,143)
-------------- -------------- -------------- -------------- ------------ ------------
Total distributions to
shareholders............. (28,396,518) (93,735,571) (99,627,335) (12,167,899) - (4,415,525)
-------------- -------------- -------------- -------------- ------------ ------------
NET INCREASE FROM CAPITAL
SHARE TRANSACTIONS........ 637,975,931 144,420,420 49,945,698 66,376,400 12,844,720 197,553,437
-------------- -------------- -------------- -------------- ------------ ------------
NET INCREASE IN NET ASSETS.... 854,383,072 386,533,919 153,153,781 100,731,132 12,551,165 219,982,553
-------------- -------------- -------------- -------------- ------------ ------------
NET ASSETS - MAY 31, 1998
(a)(d).................... 1,356,914,311 1,658,240,431 1,071,433,000 232,499,225 12,551,165 297,836,904
-------------- -------------- -------------- -------------- ------------ ------------
OPERATIONS
Net investment income
(loss)................... 17,704,393 7,263,003 (885,620) (3,030,143) (19,783) (1,176,436)
Net realized gain (loss) from
investments.............. 7,349,243 69,434,989 65,419,167 38,470,599 (4,092,709) (30,744,151)
Net change in unrealized
appreciation
(depreciation) of
investments.............. 197,583,941 155,158,955 4,756,363 110,679,616 3,595,266 (11,334,217)
-------------- -------------- -------------- -------------- ------------ ------------
Net increase (decrease) in
net assets resulting from
operations............... 222,637,577 231,856,947 69,289,910 146,120,072 (517,226) (43,254,804)
-------------- -------------- -------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... (1,080,235) (269,774) (14,034) - (102) -
B Shares.................... (454,877) - - - - -
C Shares.................... (1,183) (905) (30) - - -
I Shares.................... (16,436,298) (6,719,636) (743,167) - (1,573) -
Net realized gain on
investments
A Shares.................... (532,668) (1,318,172) (1,027,051) (82,577) - (7,474)
B Shares.................... (507,071) (2,118,718) (1,049,213) (70,277) - (5,893)
C Shares.................... (66) (4,423) (2,165) - - -
I Shares.................... (8,080,050) (32,833,554) (54,387,314) (8,107,762) - (280,588)
-------------- -------------- -------------- -------------- ------------ ------------
Total distributions to
shareholders............. (27,092,448) (43,265,182) (57,222,974) (8,260,616) (1,675) (293,955)
-------------- -------------- -------------- -------------- ------------ ------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 180,036,408 (36,225,049) (126,544,197) 623,130,201 50,208,847 (43,587,244)
-------------- -------------- -------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 375,581,537 152,366,716 (114,477,261) 760,989,657 49,689,946 (87,136,003)
-------------- -------------- -------------- -------------- ------------ ------------
NET ASSETS - MAY 31, 1999
(b)....................... 1,732,495,848 1,810,607,147 956,955,739 993,488,882 62,241,111 210,700,901
-------------- -------------- -------------- -------------- ------------ ------------
OPERATIONS:
Net investment income
(loss)................... 6,337,791 2,815,526 68,585 (2,090,597) (43,240) (327,056)
Net realized gain from
investments.............. 37,939,911 48,744,179 42,441,356 3,410,766 2,218,511 11,287,621
Net change in unrealized
depreciation of
investments.............. (119,421,858) (79,055,363) (12,838,022) (21,396,941) (2,252,298) (10,960,300)
-------------- -------------- -------------- -------------- ------------ ------------
Net increase (decrease) in
net assets resulting from
operations............... (75,144,156) (27,495,658) 29,671,919 (20,076,772) (77,027) 265
-------------- -------------- -------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... (560,495) - - - - -
B Shares.................... (171,989) - - - - -
C Shares.................... (3,398) - - - - -
I Shares.................... (7,794,280) - - - - -
Net realized gain on
investments
A Shares.................... - - - - - -
B Shares.................... - - - - - -
C Shares.................... - - - - - -
I Shares.................... - - - - - -
-------------- -------------- -------------- -------------- ------------ ------------
Total distributions to
shareholders............. (8,530,162) - - - - -
-------------- -------------- -------------- -------------- ------------ ------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 52,585,332 305,877,514 (299,132,112) 218,771,621 7,122,824 (3,696,193)
-------------- -------------- -------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... (31,088,986) 278,381,856 (269,460,193) 198,694,849 7,045,797 (3,695,928)
-------------- -------------- -------------- -------------- ------------ ------------
NET ASSETS - SEPTEMBER 30,
1999 (c).................. $1,701,406,862 $2,088,989,003 $ 687,495,546 $1,192,183,731 $ 69,286,908 $207,004,973
============== ============== ============== ============== ============ ============
(a) Undistributed
(distributions in excess
of) net investment income,
May 31, 1998.............. $ 3,083,891 $ 6,542,972 $ 188,975 $ - $ (2,549) $ -
============== ============== ============== ============== ============ ============
(b) Undistributed
(distributions in excess
of) net investment income,
May 31, 1999.............. $ 2,812,753 $ 5,854,223 $ (159,002) $ - $ - $ -
============== ============== ============== ============== ============ ============
(c) Undistributed
(distributions in excess
of) net investment income,
September 30, 1999........ $ 620,427 $ 8,237,731 $ (362,607) $ - $ - $ -
============== ============== ============== ============== ============ ============
(d) Beginning of period....... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Dec 31, 1997 Jun 1, 1997
<CAPTION>
SMALL
COMPANY
GROWTH INTERNATIONAL
FUND FUND
---- ----
<S> <C> <C>
NET ASSETS - MAY 31, 1997..... $447,580,223 $232,459,312
------------ ------------
OPERATIONS
Net investment income
(loss)................... (5,057,058) 1,122,442
Net realized gain (loss) from
investments.............. 119,313,461 4,029,919
Net change in unrealized
appreciation
(depreciation) of
investments.............. (11,277,547) 21,976,707
------------ ------------
Net increase (decrease) in
net assets resulting from
operations............... 102,978,856 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.................... - -
B Shares.................... - -
I Shares.................... (76,030,715) -
------------ ------------
Total distributions to
shareholders............. (76,030,715) (2,283,664)
------------ ------------
NET INCREASE FROM CAPITAL
SHARE TRANSACTIONS........ 273,741,025 27,949,215
------------ ------------
NET INCREASE IN NET ASSETS.... 300,689,166 52,794,619
------------ ------------
NET ASSETS - MAY 31, 1998
(a)(d).................... 748,269,389 285,253,931
------------ ------------
OPERATIONS
Net investment income
(loss)................... (3,053,396) 1,173,546
Net realized gain (loss) from
investments.............. (72,079,150) 19,971,609
Net change in unrealized
appreciation
(depreciation) of
investments.............. (11,124,316) (25,695,183)
------------ ------------
Net increase (decrease) in
net assets resulting from
operations............... (86,256,862) (4,550,028)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... - (28,212)
B Shares.................... - -
C Shares.................... - -
I Shares.................... - (2,016,250)
Net realized gain on
investments
A Shares.................... - (77,857)
B Shares.................... - (43,845)
C Shares.................... - -
I Shares.................... (49,666,455) (5,871,186)
------------ ------------
Total distributions to
shareholders............. (49,666,455) (8,037,350)
------------ ------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. (54,830,292) 3,412,555
------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... (190,753,609) (9,174,823)
------------ ------------
NET ASSETS - MAY 31, 1999
(b)....................... 557,515,780 276,079,108
------------ ------------
OPERATIONS:
Net investment income
(loss)................... (958,201) 843,930
Net realized gain from
investments.............. 44,116,954 11,341,632
Net change in unrealized
depreciation of
investments.............. (50,976,516) (748,412)
------------ ------------
Net increase (decrease) in
net assets resulting from
operations............... (7,817,763) 11,437,150
------------ ------------
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.............. (34,405,770) (8,382,475)
------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... (42,223,533) 3,054,675
------------ ------------
NET ASSETS - SEPTEMBER 30,
1999 (c).................. $515,292,247 $279,133,783
============ ============
(a) Undistributed
(distributions in excess
of) net investment income,
May 31, 1998.............. $ - $ 1,993,474
============ ============
(b) Undistributed
(distributions in excess
of) net investment income,
May 31, 1999.............. $ - $ 124,058
============ ============
(c) Undistributed
(distributions in excess
of) net investment income,
September 30, 1999........ $ - $ 636,425
============ ============
(d) Beginning of period....... Jun 1, 1997 Jun 1, 1997
</TABLE>
[LOGO]
27
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE
STRATEGIC MODERATE GROWTH BALANCED - INCOME
INCOME BALANCED BALANCED EQUITY INDEX EQUITY
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
CAPITAL SHARE ACTIVITY --
DOLLARS
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... $ - $ - $ - $ - $ - $ 25,802,002
B shares.................... - - - - - 26,991,385
I shares.................... 145,673,252 121,048,882 173,888,398 10,402,991 316,712,289 724,447,714
SHARES ISSUED IN CONVERSION
(NOTE 5)
I shares.................... - - - - - 477,132,068
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - - - - 1,802,610
B shares.................... - - - - - 1,100,313
I shares.................... 10,107,735 38,592,648 39,022,268 1,203 55,520,473 11,445,588
REDEMPTION OF SHARES
A shares.................... - - - - - (8,154,670)
B shares.................... - - - - - (4,311,667)
I shares.................... (62,155,767) (142,872,183) (121,587,427) (1,920,359) (196,372,828) (618,279,412)
------------ ------------- ------------- ------------ ------------- -------------
NET INCREASE IN NET ASSETS
FROM CAPITAL SHARE
ACTIVITY.................. $ 93,625,220 $ 16,769,347 $ 91,323,239 $ 8,483,835 $ 175,859,934 $ 637,975,931
============ ============= ============= ============ ============= =============
YEAR ENDED MAY 31, 1999
SALE OF SHARES
A shares.................... $ - $ - $ 3,621,964 $ - $ - $ 31,030,310
B shares.................... - - 8,854,582 - - 36,986,937
C shares.................... - - 1,256,425 - - 1,073,688
I shares.................... 70,070,502 123,800,331 204,369,753 23,725,687 420,043,740 291,511,720
SHARES ISSUED IN CONVERSION
(NOTE 5)
A shares.................... - - - - - -
I shares.................... - - - - - 30,884,547
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - 54,918 - - 1,790,207
B shares.................... - - 84,019 - - 928,800
C shares.................... - - 1,012 - - 406
I shares.................... 14,719,218 31,072,462 39,403,839 - 16,802,405 7,548,280
REDEMPTION OF SHARES
A shares.................... - - (168,266) - - (14,225,873)
B shares.................... - - (130,627) - - (9,778,614)
C shares.................... - - (24,491) - - (2,757)
I shares.................... (62,148,328) (116,976,850) (130,964,703) (3,163,094) (224,895,772) (197,711,243)
------------ ------------- ------------- ------------ ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
ACTIVITY.................. $ 22,641,392 $ 37,895,943 $ 126,358,425 $ 20,562,593 $ 211,950,373 $ 180,036,408
============ ============= ============= ============ ============= =============
PERIOD ENDED SEPTEMBER 30,
1999
SALE OF SHARES
A shares.................... $ - $ - $ 3,197,005 $ - $ - $ 14,414,264
B shares.................... - - 3,441,440 - - 22,009,648
C shares.................... - - 998,626 - - 1,182,833
I shares.................... 23,629,941 55,133,210 116,820,438 39,933,710 92,744,713 82,657,036
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - - - - 527,543
B shares.................... - - - - - 165,143
C shares.................... - - - - - 2,957
I shares.................... - - - - 12,024,701 2,205,592
REDEMPTION OF SHARES
A shares.................... - - (198,526) - - (5,536,628)
B shares.................... - - (325,044) - - (4,190,970)
C shares.................... - - (56,287) - - (53,142)
I shares.................... (20,931,153) (36,551,330) (57,694,546) (5,300,609) (442,277,055) (60,798,944)
------------ ------------- ------------- ------------ ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
ACTIVITY.................. $ 2,698,788 $ 18,581,880 $ 66,183,106 $ 34,633,101 $(337,507,641) $ 52,585,332
============ ============= ============= ============ ============= =============
(a) Beginning of period..... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Dec 2, 1997 Jun 1, 1997 Jun 1, 1997
</TABLE>
See Notes to Financial Statements.
[LOGO]
28
<PAGE>
FOR THE YEARS OR PERIODS ENDED MAY 31, 1998, MAY 31, 1999 AND SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL SMALL
DIVERSIFIED GROWTH LARGE DIVERSIFIED CAP COMPANY
EQUITY EQUITY COMPANY SMALL CAP OPPORTUNITIES GROWTH INTERNATIONAL
FUND FUND GROWTH FUND FUND FUND FUND
---- ---- ------ ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITAL SHARE ACTIVITY --
DOLLARS
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... $ 27,277,888 $ 8,477,025 $ - $ - $ 6,586,891 $ - $ 1,806,507
B shares.................... 41,099,564 7,062,682 - - 6,098,057 - 571,189
I shares.................... 309,400,646 203,089,698 96,865,190 14,057,810 222,106,855 333,748,426 63,830,151
SHARES ISSUED IN CONVERSION
(NOTE 5)
I shares.................... - - - - - 140,478,982 -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 2,508,624 1,889,663 - - 76,078 - 28,988
B shares.................... 3,272,867 1,216,596 - - 46,101 - 6,031
I shares.................... 86,692,121 96,307,274 11,421,974 - 3,497,844 74,728,592 1,644,365
REDEMPTION OF SHARES
A shares.................... (4,847,852) (4,689,355) - - (440,970) - (1,002,906)
B shares.................... (5,131,550) (1,402,259) - - (167,823) - (197,871)
I shares.................... (315,851,888) (262,005,626) (41,910,764) (1,213,090) (40,249,596) (275,214,975) (38,737,239)
------------- ------------- ------------- ------------ ------------- ------------- ------------
NET INCREASE IN NET ASSETS
FROM CAPITAL SHARE
ACTIVITY.................. $ 144,420,420 $ 49,945,698 $ 66,376,400 $12,844,720 $197,553,437 $ 273,741,025 $ 27,949,215
============= ============= ============= ============ ============= ============= ============
YEAR ENDED MAY 31, 1999
SALE OF SHARES
A shares.................... $ 18,382,464 $ 3,376,261 $ 93,839,663 $ 2,942,162 $ 1,872,644 $ - $ 1,205,713
B shares.................... 26,937,589 3,615,753 158,195,013 495,965 632,224 - 177,716
C shares.................... 531,763 54,890 - - - - -
I shares.................... 308,645,466 120,780,283 408,193,236 59,524,813 70,541,322 74,387,405 60,427,481
SHARES ISSUED IN CONVERSION
(NOTE 5)
A shares.................... - - 169,603,833 - - - -
I shares.................... - - - - - - 1,767,537
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 1,555,531 1,037,693 82,347 102 7,338 - 105,370
B shares.................... 2,057,513 1,032,313 65,108 - 5,838 - 43,448
C shares.................... 4,011 2,195 - - - - -
I shares.................... 38,912,029 55,000,456 6,949,708 1,066 223,800 48,333,313 6,065,939
REDEMPTION OF SHARES
A shares.................... (13,727,157) (8,534,711) (91,794,834) (1,656,498) (3,174,125) - (1,683,986)
B shares.................... (10,529,111) (2,465,177) (2,426,417) (46,696) (1,651,678) - (384,535)
C shares.................... (19,649) (49) - - - - -
I shares.................... (408,975,498) (300,444,104) (119,577,456) (11,052,067) (112,044,607) (177,551,010) (64,312,128)
------------- ------------- ------------- ------------ ------------- ------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
ACTIVITY.................. $ (36,225,049) $(126,544,197) $ 623,130,201 $50,208,847 $(43,587,244) $ (54,830,292) $ 3,412,555
============= ============= ============= ============ ============= ============= ============
PERIOD ENDED SEPTEMBER 30,
1999
SALE OF SHARES
A shares.................... $ 5,251,832 $ 73,248,493 $ 63,888,122 $ 19,737 $ 3,716,775 $ - $ 316,554
B shares.................... 7,782,318 698,018 51,266,495 124,041 234,702 - 182,679
C shares.................... 1,598,629 303,286 - - - - -
I shares.................... 409,909,858 27,122,299 263,385,563 13,260,671 16,392,921 15,065,692 16,178,616
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - - - - - -
B shares.................... - - - - - - -
C shares.................... - - - - - - -
I shares.................... - - - - - - -
REDEMPTION OF SHARES
A shares.................... (3,983,360) (67,273,692) (65,324,773) (262,777) (778,073) - (583,425)
B shares.................... (4,039,229) (764,230) (4,397,701) (42,387) (323,342) - (280,747)
C shares.................... (93,687) (28,052) - - - - -
I shares.................... (110,548,847) (332,438,234) (90,046,085) (5,976,461) (22,939,176) (49,471,462) (24,196,152)
------------- ------------- ------------- ------------ ------------- ------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
ACTIVITY.................. $ 305,877,514 $(299,132,112) $ 218,771,621 $ 7,122,824 $ (3,696,193) $ (34,405,770) $ (8,382,475)
============= ============= ============= ============ ============= ============= ============
(a) Beginning of period..... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Dec 31, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997
</TABLE>
[LOGO]
29
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE
STRATEGIC MODERATE GROWTH BALANCED -- INCOME
INCOME BALANCED BALANCED EQUITY INDEX EQUITY
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
CAPITAL SHARE ACTIVITY --
SHARES
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... - - - - - 673,475
B shares.................... - - - - - 706,729
I shares.................... 7,728,378 5,365,566 6,418,622 979,220 7,169,873 19,738,592
SHARES ISSUED IN CONVERSION
(NOTE 5)
I shares.................... - - - - - 13,451,708
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - - - - 50,267
B shares.................... - - - - - 31,134
I shares.................... 535,117 1,768,475 1,512,613 122 1,360,918 317,407
REDEMPTION OF SHARES
A shares.................... - - - - - (217,182)
B shares.................... - - - - - (115,169)
I shares.................... (3,209,926) (6,316,798) (4,523,554) (176,004) (4,609,369) (16,842,496)
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE IN SHARES
OUTSTANDING............... 5,053,569 817,243 3,407,681 803,338 3,921,422 17,794,465
=========== =========== =========== =========== =========== ===========
YEAR ENDED MAY 31, 1999
SALE OF SHARES
A shares.................... - - 115,386 - - 746,028
B shares.................... - - 293,564 - - 879,514
C shares.................... - - 40,904 - - 23,317
I shares.................... 3,522,514 5,272,604 6,897,939 2,138,936 8,282,644 6,061,084
SHARES ISSUED IN CONVERSION
(NOTE 5)
A shares.................... - - - - - -
I shares.................... - - - - - 833,816
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - 1,793 - - 37,930
B shares.................... - - 2,916 - - 23,066
C shares.................... - - 35 - - 29
I shares.................... 753,286 1,348,046 1,364,871 - 337,195 1,081,099
REDEMPTION OF SHARES
A shares.................... - - (5,313) - - (340,027)
B shares.................... - - (4,592) - - (235,545)
C shares.................... - - (792) - - (59)
I shares.................... (3,120,624) (4,973,212) (4,488,548) (469,525) (4,484,432) (4,683,126)
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ 1,155,176 1,647,438 4,218,163 1,669,411 4,135,407 4,427,126
=========== =========== =========== =========== =========== ===========
PERIOD ENDED SEPTEMBER 30,
1999
SALE OF SHARES
A shares.................... - - 94,565 - - 306,313
B shares.................... - - 109,712 - - 469,263
C shares.................... - - 31,911 - - 24,641
I shares.................... 1,172,995 2,245,495 3,673,918 2,967,189 1,654,171 1,755,656
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - - - - 11,703
B shares.................... - - - - - 3,688
C shares.................... - - - - - 64
I shares.................... - - - - 216,426 48,885
REDEMPTION OF SHARES
A shares.................... - - (5,973) - - (118,467)
B shares.................... - - (10,390) - - (89,092)
C shares.................... - - (1,804) - - (1,104)
I shares.................... (1,040,085) (1,496,860) (1,819,297) (395,534) (7,757,609) (1,291,122)
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ 132,910 748,635 2,072,642 2,571,655 (5,887,012) 1,120,428
=========== =========== =========== =========== =========== ===========
(a) Beginning of period....... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Dec 2, 1997 Jun 1, 1997 Jun 1, 1997
</TABLE>
See Notes to Financial Statements.
[LOGO]
30
<PAGE>
FOR THE YEARS OR PERIODS ENDED MAY 31, 1998, MAY 31, 1999 AND SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL
DIVERSIFIED GROWTH COMPANY DIVERSIFIED SMALL CAP COMPANY
EQUITY EQUITY GROWTH SMALL CAP OPPORTUNITIES GROWTH INTERNATIONAL
FUND FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITAL SHARE ACTIVITY --
SHARES
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... 668,348 242,061 - - 279,457 - 80,906
B shares.................... 1,015,535 202,901 - - 259,433 - 25,847
I shares.................... 7,679,211 5,835,291 2,562,358 1,303,714 9,752,210 8,971,022 2,872,843
SHARES ISSUED IN CONVERSION
(NOTE 5)
I shares.................... - - - - - 3,765,183 -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 66,201 60,274 - - 3,533 - 1,436
B shares.................... 87,194 39,280 - - 2,132 - 300
I shares.................... 2,287,744 3,072,002 331,263 - 162,388 2,355,902 81,404
REDEMPTION OF SHARES
A shares.................... (118,188) (134,074) - - (18,241) - (45,582)
B shares.................... (125,529) (40,469) - - (6,248) - (8,757)
I shares.................... (7,875,238) (7,547,813) (1,111,098) (110,791) (1,738,955) (7,286,493) (1,776,454)
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE IN SHARES
OUTSTANDING............... 3,685,278 1,729,453 1,782,523 1,192,923 8,695,709 7,805,614 1,231,943
=========== =========== =========== =========== =========== =========== ===========
YEAR ENDED MAY 31, 1999
SALE OF SHARES
A shares.................... 413,591 96,167 1,640,660 329,220 96,329 - 56,943
B shares.................... 613,385 106,848 2,919,636 58,846 32,183 - 8,712
C shares.................... 11,575 1,587 - - - - -
I shares.................... 6,936,823 3,479,533 8,208,824 6,784,576 3,460,168 2,679,836 2,751,723
SHARES ISSUED IN CONVERSION
(NOTE 5)
A shares.................... - - 3,418,054 - - - -
I shares.................... - - - - - - 91,630
REINVESTMENT OF DISTRIBUTIONS
A shares.................... 35,487 31,004 1,664 11 382 - 3,714
B shares.................... 47,366 31,425 1,398 - 309 - 1,275
C shares.................... 91 65 - - - - -
I shares.................... 888,401 1,643,276 149,263 123 11,650 1,910,408 204,563
REDEMPTION OF SHARES
A shares.................... (311,744) (251,667) (1,768,124) (171,238) (158,680) - (75,036)
B shares.................... (240,909) (73,787) (42,856) (5,692) (87,408) - (17,633)
C shares.................... (429) (1) - - - - -
I shares.................... (9,367,163) (8,597,077) (2,373,039) (1,277,086) (5,697,246) (6,481,259) (2,873,704)
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ (973,526) (3,532,627) 12,155,480 5,718,760 (2,342,313) (1,891,015) 152,187
=========== =========== =========== =========== =========== =========== ===========
PERIOD ENDED SEPTEMBER 30,
1999
SALE OF SHARES
A shares.................... 105,338 1,951,289 1,063,136 1,973 180,428 - 13,424
B shares.................... 158,234 19,110 908,414 13,455 11,415 - 7,788
C shares.................... 32,736 7,771 - - - - -
I shares.................... 8,082,334 720,339 4,510,202 1,421,871 775,434 527,999 679,900
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - - - - - - -
B shares.................... - - - - - - -
C shares.................... - - - - - - -
I shares.................... - - - - - - -
REDEMPTION OF SHARES
A shares.................... (80,188) (1,785,546) (1,096,599) (26,807) (37,207) - (24,360)
B shares.................... (82,020) (20,669) (77,709) (4,386) (15,706) - (11,596)
C shares.................... (1,850) (734) - - - - -
I shares.................... (2,217,985) (8,674,078) (1,628,433) (647,523) (1,090,956) (1,779,620) (1,019,113)
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ 5,996,599 (7,782,518) 3,679,011 758,583 (176,592) (1,251,621) (353,957)
=========== =========== =========== =========== =========== =========== ===========
(a) Beginning of period....... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Dec 31, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997
</TABLE>
[LOGO]
31
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<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 VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
----- ------ ----------- ------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
STRATEGIC INCOME FUND
- -------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30,
1999............................ $19.98 $ 0.29 $(0.21) $ - $ - $20.06
June 1, 1998 to May 31, 1999...... 19.56 0.82 0.81 (0.84) (0.37) 19.98
June 1, 1997 to May 31, 1998...... 18.47 0.79 1.75 (0.86) (0.59) 19.56
June 1, 1996 to May 31, 1997...... 18.12 0.97 0.71 (0.95) (0.38) 18.47
November 1, 1995 to May 31,
1996............................ 18.21 0.48 0.42 (0.76) (0.23) 18.12
November 11, 1994(g) to October
31, 1995........................ 16.19 0.75 1.27 - - 18.21
MODERATE BALANCED FUND
- -------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30,
1999............................ 24.14 0.26 (0.22) - - 24.18
June 1, 1998 to May 31, 1999...... 22.98 0.75 1.94 (0.75) (0.78) 24.14
June 1, 1997 to May 31, 1998...... 21.59 0.80 2.72 (0.86) (1.27) 22.98
June 1, 1996 to May 31, 1997...... 20.27 0.77 1.60 (0.76) (0.29) 21.59
November 1, 1995 to May 31,
1996............................ 19.84 0.46 0.89 (0.66) (0.26) 20.27
November 11, 1994(g) to October
31, 1995........................ 17.25 0.65 1.94 - - 19.84
GROWTH BALANCED FUND
- -------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30,
1999............................ 32.78 0.16 (0.25) - - 32.69
October 1, 1998(g) to May 31,
1999............................ 28.09 0.63 5.67 (0.58) (1.03) 32.78
B SHARES
June 1, 1999 to September 30,
1999............................ 30.76 0.10 (0.27) - - 30.59
October 1, 1998(g) to May 31,
1999............................ 26.96 0.56 4.82 (0.55) (1.03) 30.76
C SHARES
June 1, 1999 to September 30,
1999............................ 30.79 0.07 (0.21) - - 30.65
October 1, 1998(g) to May 31, 1999 26.96 0.65 4.79 (0.58) (1.03) 30.79
I SHARES
June 1, 1999 to September 30,
1999............................ 30.93 0.19 (0.26) - - 30.86
June 1, 1998 to May 31, 1999...... 28.06 0.60 3.88 (0.58) (1.03) 30.93
June 1, 1997 to May 31, 1998...... 24.77 0.58 4.52 (0.60) (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
AGGRESSIVE BALANCED-EQUITY FUND
- -------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30,
1999............................ 12.93 0.02 (0.06) - - 12.89
June 1, 1998 to May 31, 1999...... 11.04 0.15 1.83 (0.09) - 12.93
December 2, 1997(g) to May 31,
1998............................ 10.00 0.06 0.99 (0.01) - 11.04
INDEX FUND
- -------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30,
1999............................ 54.83 0.24 (0.77) (0.36) (0.27) 53.67
June 1, 1998 to May 31, 1999...... 46.36 0.57 8.87 (0.57) (0.40) 54.83
June 1, 1997 to May 31, 1998...... 39.49 0.58 10.74 (0.65) (3.80) 46.36
June 1, 1996 to May 31, 1997...... 31.49 0.49 8.50 (0.48) (0.51) 39.49
November 1, 1995 to May 31,
1996............................ 27.67 0.36 4.08 (0.43) (0.19) 31.49
November 11, 1994(g) to October
31, 1995........................ 21.80 0.45 5.42 - - 27.67
INCOME EQUITY FUND
- -------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30,
1999............................ 46.36 0.17 (2.09) (0.24) - 44.20
June 1, 1998 to May 31, 1999...... 41.19 0.51 5.45 (0.53) (0.26) 46.36
June 1, 1997 to May 31, 1998...... 33.16 0.52 8.77 (0.54) (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
</TABLE>
[LOGO]
See Notes to Financial Highlights and Notes to Financial Statements.
32
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
----------------------------------------------- PORTFOLIO NET ASSETS AT
NET INVESTMENT GROSS TOTAL TURNOVER END OF PERIOD
INCOME (LOSS) NET EXPENSES EXPENSES(A) RETURN(B) RATE (000'S OMITTED)
------------- ------------ ----------- --------- ---- ---------------
<S> <C> <C> <C> <C> <C> <C>
STRATEGIC INCOME FUND
- ----------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30,
1999............................ 4.32%(c)(d) 0.80%(c)(d) 1.05%(c)(d) 0.40% 11%(e) $ 267,158
June 1, 1998 to May 31, 1999...... 4.22%(d) 0.80%(d) 1.04%(d) 8.45% 54%(e) 263,328
June 1, 1997 to May 31, 1998...... 4.47%(d) 0.80%(d) 1.03%(d) 14.13% 58%(e) 235,254
June 1, 1996 to May 31, 1997...... 4.38%(d) 0.81%(d) 0.98%(d) 9.58% 72% 128,777
November 1, 1995 to May 31,
1996............................ 4.65%(c)(d) 0.82%(c)(d) 0.97%(c)(d) 5.14% 56% 146,950
November 11, 1994(g) to October
31, 1995........................ 4.67%(c)(d) 0.82%(c)(d) 1.03%(c)(d) 12.48% 66% 136,710
MODERATE BALANCED FUND
- ----------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30,
1999............................ 3.37%(c)(d) 0.88%(c)(d) 1.09%(c)(d) 0.17% 11%(e) 546,570
June 1, 1998 to May 31, 1999...... 3.26%(d) 0.88%(d) 1.09%(d) 12.02% 53%(e) 527,693
June 1, 1997 to May 31, 1998...... 3.57%(d) 0.88%(d) 1.05%(d) 17.04% 54%(e) 464,384
June 1, 1996 to May 31, 1997...... 3.70%(d) 0.88%(d) 1.04%(d) 12.04% 45% 418,680
November 1, 1995 to May 31,
1996............................ 3.95%(c)(d) 0.90%(c)(d) 1.04%(c)(d) 7.03% 53% 398,005
November 11, 1994(g) to October
31, 1995........................ 3.76%(c)(d) 0.92%(c)(d) 1.11%(c)(d) 15.01% 62% 373,998
GROWTH BALANCED FUND
- ----------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30,
1999............................ 1.83%(c)(d) 1.15%(c)(d) 1.67%(c)(d) (0.27%) 11%(e) 6,552
October 1, 1998(g) to May 31,
1999............................ 1.92%(c)(d) 1.15%(c)(d) 1.88%(c)(d) 22.83% 49%(e) 3,667
B SHARES
June 1, 1999 to September 30,
1999............................ 1.08%(c)(d) 1.90%(c)(d) 2.31%(d) (0.55%) 11%(e) 11,967
October 1, 1998(g) to May 31,
1999............................ 1.34%(c)(d) 1.75%(c)(d) 2.43%(c)(d) 20.36% 49%(e) 8,978
C SHARES
June 1, 1999 to September 30,
1999............................ 1.30%(c)(d) 1.68%(c)(d) 2.46%(c)(d) (0.45%) 11%(e) 2,153
October 1, 1998(g) to May 31, 1999 1.45%(c)(d) 1.68%(c)(d) 4.43%(c)(d) 20.59% 49%(e) 1,236
I SHARES
June 1, 1999 to September 30,
1999............................ 2.05%(c)(d) 0.93%(c)(d) 1.14%(c)(d) (0.23%) 11%(e) 905,789
June 1, 1998 to May 31, 1999...... 2.16%(d) 0.93%(d) 1.13%(d) 16.38% 49%(e) 850,503
June 1, 1997 to May 31, 1998...... 2.38%(d) 0.93%(d) 1.09%(d) 21.40% 46%(e) 665,758
June 1, 1996 to May 31, 1997...... 2.47%(d) 0.94%(d) 1.16%(d) 15.81% 24%(e) 503,382
November 1, 1995 to May 31,
1996............................ 2.66%(c)(d) 0.98%(c)(d) 1.16%(c)(d) 10.87% 39% 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% 374,892
AGGRESSIVE BALANCED-EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30,
1999............................ 1.36%(c)(d) 1.00%(c)(d) 1.24%(c)(d) (0.31%) 12%(e) 65,011
June 1, 1998 to May 31, 1999...... 1.34%(d) 1.00%(d) 1.36%(d) 17.98% 43%(e) 31,975
December 2, 1997(g) to May 31,
1998............................ 1.58%(c)(d) 1.00%(c)(d) 2.29%(c)(d) 10.55% 36%(e) 8,872
INDEX FUND
- ----------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30,
1999............................ 1.17%(c)(d) 0.25%(c)(d) 0.55%(c)(d) (1.00%) 11%(f) 813,861
June 1, 1998 to May 31, 1999...... 1.28%(d) 0.25%(d) 0.55%(d) 20.57% 4%(f) 1,154,289
June 1, 1997 to May 31, 1998...... 1.53%(d) 0.25%(d) 0.58%(d) 30.32% 7%(f) 784,205
June 1, 1996 to May 31, 1997...... 2.10% 0.25% 0.56% 29.02% 24% 513,134
November 1, 1995 to May 31,
1996............................ 2.25%(c) 0.31%(c) 0.57%(c) 16.27% 9% 249,644
November 11, 1994(g) to October
31, 1995........................ 2.12%(c) 0.50%(c) 0.64%(c) 26.93% 14% 186,197
INCOME EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30,
1999............................ 1.12%(c)(d) 0.85%(c)(d) 0.90%(c)(d) (4.16%) 5%(f) 109,081
June 1, 1998 to May 31, 1999...... 1.23%(d) 0.85%(d) 0.93%(d) 14.74% 3%(f) 105,162
June 1, 1997 to May 31, 1998...... 1.44%(d) 0.85%(d) 0.91%(d) 28.64% 3%(f) 75,144
June 1, 1996 to May 31, 1997...... 1.95% 0.85% 0.93% 22.40% 5% 43,708
May 2, 1996(g) to May 31, 1996.... 3.69%(c) 0.91%(c) 1.91%(c) 2.30% 1% 31,448
</TABLE>
[LOGO]
33
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BEGINNING NET REALIZED
NET ASSET NET AND DIVIDENDS DISTRIBUTIONS ENDING
VALUE INVESTMENT UNREALIZED FROM NET FROM NET NET ASSET
PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
----- ------ ----------- ------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
INCOME EQUITY FUND (CONT'D)
- ---------------------------------------------------------------------------------------------------------------
B SHARES
June 1, 1999 to September 30, 1999.... $46.27 $ 0.05 $(2.08) $(0.07) $ - $44.17
June 1, 1998 to May 31, 1999.......... 41.12 0.19 5.45 (0.23) (0.26) 46.27
June 1, 1997 to May 31, 1998.......... 33.09 0.24 8.75 (0.24) (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
June 1, 1999 to September 30, 1999.... 47.49 0.08 (2.17) (0.10) - 45.30
October 1, 1998(g) to May 31, 1999.... 37.26 0.47 10.39 (0.48) (0.15) 47.49
I SHARES
June 1, 1999 to September 30, 1999.... 46.35 0.18 (2.10) (0.24) - 44.19
June 1, 1998 to May 31, 1999.......... 41.18 0.51 5.45 (0.53) (0.26) 46.35
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
DIVERSIFIED EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30, 1999.... 48.25 0.07 (0.31) - - 48.01
June 1, 1998 to May 31, 1999.......... 43.06 0.08 6.29 (0.20) (0.98) 48.25
June 1, 1997 to May 31, 1998.......... 36.51 0.16 8.99 (0.27) (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, 1999 to September 30, 1999.... 47.69 (0.04) (0.32) - - 47.33
June 1, 1998 to May 31, 1999.......... 42.69 (0.11) 6.09 - (0.98) 47.69
June 1, 1997 to May 31, 1998.......... 36.31 (0.06) 8.85 (0.08) (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
June 1, 1999 to September 30, 1999.... 48.26 0.08 (0.44) - - 47.90
October 1, 1998(g) to May 31, 1999.... 38.71 0.08 10.65 (0.20) (0.98) 48.26
I SHARES
June 1, 1999 to September 30, 1999.... 48.25 0.04 (0.29) - - 48.00
June 1, 1998 to May 31, 1999.......... 43.06 0.22 6.15 (0.20) (0.98) 48.25
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
GROWTH EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30, 1999.... 36.17 (0.01) 0.67 - - 36.83
June 1, 1998 to May 31, 1999.......... 35.73 (0.02) 2.56 (0.03) (2.07) 36.17
June 1, 1997 to May 31, 1998.......... 32.49 (0.06) 6.88 (0.04) (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, 1999 to September 30, 1999.... 35.39 (0.10) 0.64 - - 35.93
June 1, 1998 to May 31, 1999.......... 35.23 (0.25) 2.48 - (2.07) 35.39
June 1, 1997 to May 31, 1998.......... 32.28 (0.23) 6.72 - (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
June 1, 1999 to September 30, 1999.... 36.29 0.02 0.53 - - 36.84
October 1, 1998(g) to May 31, 1999.... 30.66 (0.13) 7.86 (0.03) (2.07) 36.29
</TABLE>
[LOGO]
See Notes to Financial Highlights and Notes to Financial Statements.
34
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSET
------------------------------------------------ PORTFOLIO NET ASSETS AT
NET INVESTMENT GROSS TOTAL TURNOVER END OF PERIOD
INCOME (LOSS) NET EXPENSES EXPENSES(A) RETURN(B) RATE (000'S OMITTED)
------------- ------------ ----------- --------- ---- ---------------
<S> <C> <C> <C> <C> <C> <C>
INCOME EQUITY FUND (CONT'D)
- -----------------------------------------------------------------------------------------------------------------------------------
B SHARES
June 1, 1999 to September 30,
1999............................ 0.37%(c)(d) 1.60%(c)(d) 1.90%(c)(d) (4.40%) 5%(f) $ 118,792
June 1, 1998 to May 31, 1999...... 0.48%(d) 1.60%(d) 1.94%(d) 13.90% 3%(f) 106,688
June 1, 1997 to May 31, 1998...... 0.69%(d) 1.60%(d) 1.91%(d) 27.67% 3%(f) 67,385
June 1, 1996 to May 31, 1997...... 1.24% 1.59% 1.96% 21.48% 5% 33,626
May 2, 1996(g) to May 31, 1996.... 2.92%(c) 1.72%(c) 2.63%(c) 2.23% 1% 17,318
C SHARES
June 1, 1999 to September 30,
1999............................ 0.42%(c)(d) 1.60%(c)(d) 2.37%(c)(d) (4.41%) 5%(f) 2,124
October 1, 1998(g) to May 31,
1999............................ 0.48%(c)(d) 1.60%(c)(d) 4.37%(c)(d) 28.55% 3%(f) 1,106
I SHARES
June 1, 1999 to September 30,
1999............................ 1.11%(c)(d) 0.85%(c)(d) 0.88%(c)(d) (4.16%) 5%(f) 1,471,410
June 1, 1998 to May 31, 1999...... 1.23%(d) 0.85%(d) 0.89%(d) 14.75% 3%(f) 1,519,541
June 1, 1997 to May 31, 1998...... 1.43%(d) 0.85%(d) 0.86%(d) 28.61% 3%(f) 1,214,385
June 1, 1996 to May 31, 1997...... 1.97% 0.85% 0.90% 22.40% 5% 425,197
November 1, 1995 to May 31,
1996............................ 2.72%(c) 0.86%(c) 1.13%(c) 18.14% 1% 230,831
November 11, 1994(g) to October
31, 1995........................ 2.51%(c) 0.85%(c) 1.12%(c) 27.09% 7% 49,000
DIVERSIFIED EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30,
1999............................ 0.45%(c)(d) 1.00%(c)(d) 1.20%(c)(d) (0.50%) 13%(e) 70,624
June 1, 1998 to May 31, 1999...... 0.47%(d) 1.00%(d) 1.22%(d) 15.08% 35%(e) 69,768
June 1, 1997 to May 31, 1998...... 0.60%(d) 1.00%(d) 1.20%(d) 26.08% 23%(e) 56,350
June 1, 1996 to May 31, 1997...... 0.81%(d) 1.02%(d) 1.40%(d) 20.75% 48% 25,271
May 2, 1996(g) to May 31, 1996.... 1.88%(c)(d) 1.52%(c)(d) 4.06%(c)(d) 2.24% 6% 2,699
B SHARES
June 1, 1999 to September 30,
1999............................ (0.30%)(c)(d) 1.75%(c)(d) 2.20%(c)(d) (0.75%) 13%(e) 113,874
June 1, 1998 to May 31, 1999...... (0.28%)(d) 1.75%(d) 2.22%(d) 14.24% 35%(e) 111,106
June 1, 1997 to May 31, 1998...... (0.15%)(d) 1.75%(d) 2.19%(d) 25.13% 23%(e) 81,548
June 1, 1996 to May 31, 1997...... 0.09%(d) 1.76%(d) 2.41%(d) 19.86% 48% 33,870
May 6, 1996(g) to May 31, 1996.... 1.24%(c)(d) 2.37%(c)(d) 4.95%(c)(d) 3.84% 6% 2,447
C SHARES
June 1, 1999 to September 30,
1999............................ (0.28%)(c)(d) 1.75%(c)(d) 2.63%(c)(d) (0.75%) 13%(e) 2,018
October 1, 1998(g) to May 31,
1999............................ (0.28%)(c)(d) 1.75%(c)(d) 5.15%(c)(d) 28.02% 35%(e) 542
I SHARES
June 1, 1999 to September 30,
1999............................ 0.44%(c)(d) 1.00%(c)(d) 1.18%(c)(d) (0.52%) 13%(e) 1,902,474
June 1, 1998 to May 31, 1999...... 0.47%(d) 1.00%(d) 1.17%(d) 15.08% 35%(e) 1,629,191
June 1, 1997 to May 31, 1998...... 0.60%(d) 1.00%(d) 1.13%(d) 26.12% 23%(e) 1,520,343
June 1, 1996 to May 31, 1997...... 0.79%(d) 1.02%(d) 1.31%(d) 20.76% 48% 1,212,565
November 1, 1995 to May 31,
1996............................ 1.00%(c)(d) 1.06%(c)(d) 1.30%(c)(d) 16.38% 6% 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% 711,111
GROWTH EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30,
1999............................ (0.01%)(c)(d) 1.25%(c)(d) 1.45%(c)(d) 1.82% 22%(e) 23,750
June 1, 1998 to May 31, 1999...... (0.08%)(d) 1.25%(d) 1.44%(d) 7.57% 73%(e) 17,335
June 1, 1997 to May 31, 1998...... (0.11%)(d) 1.25%(d) 1.42%(d) 22.55% 47%(e) 21,567
June 1, 1996 to May 31, 1997...... (0.12%)(d) 1.30%(d) 1.95%(d) 14.11% 9% 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% 3,338
B SHARES
June 1, 1999 to September 30,
1999............................ (0.76%)(c)(d) 2.00%(c)(d) 2.45%(c)(d) 1.53% 22%(e) 19,211
June 1, 1998 to May 31, 1999...... (0.83%)(d) 2.00%(d) 2.45%(d) 6.78% 73%(e) 18,976
June 1, 1997 to May 31, 1998...... (0.85%)(d) 2.00%(d) 2.45%(d) 21.63% 47%(e) 16,615
June 1, 1996 to May 31, 1997...... (0.82%)(d) 2.04%(d) 3.02%(d) 13.28% 9% 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% 703
C SHARES
June 1, 1999 to September 30,
1999............................ (0.87%)(c)(d) 2.00%(c)(d) 6.22%(c)(d) 1.52% 22%(e) 320
October 1, 1998(g) to May 31,
1999............................ (0.87%)c)(d) 2.01%(c)(d) 21.40%(c)(d) 25.73% 73%(e) 60
</TABLE>
[LOGO]
35
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BEGINNING NET REALIZED
NET ASSET NET AND DIVIDENDS DISTRIBUTIONS ENDING
VALUE INVESTMENT UNREALIZED FROM NET FROM NET NET ASSET
PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
----- ------ ----------- ------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
GROWTH EQUITY FUND (CONT'D)
- ---------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30, 1999.... $36.17 $ 0.01 $ 0.64 $ - $ - $36.82
June 1, 1998 to May 31, 1999.......... 35.72 (0.03) 2.58 (0.03) (2.07) 36.17
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
June 1, 1999 to September 30, 1999.... 58.09 (0.12) (0.01) - - 57.96
October 1, 1998(g) to May 31, 1999.... 38.48 (0.16) 20.82 - (1.05) 58.09
B SHARES
June 1, 1999 to September 30, 1999.... 54.50 (0.19) (0.02) - - 54.29
October 1, 1998(g) to May 31, 1999.... 39.80 (0.17) 15.92 - (1.05) 54.50
I SHARES
June 1, 1999 to September 30, 1999.... 54.67 (0.07) - - - 54.60
June 1, 1998 to May 31, 1999.......... 39.94 (0.17) 15.95 - (1.05) 54.67
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
June 1, 1999 to September 30, 1999.... 9.52 (0.01) 0.03 - - 9.54
October 1, 1998(g) to May 31, 1999.... 7.77 (0.02) 1.77 -(h) - 9.52
B SHARES
June 1, 1999 to September 30, 1999.... 8.96 (0.03) 0.03 - - 8.96
October 1, 1998(g) to May 31, 1999.... 7.97 (0.03) 1.02 - - 8.96
I SHARES
June 1, 1999 to September 30, 1999.... 8.99 (0.01) 0.04 - - 9.02
June 1, 1998 to May 31, 1999.......... 10.52 - (1.53) -(h) - 8.99
December 31, 1997(g) to May 31,
1998................................ 10.00 - 0.52 - - 10.52
SMALL CAP OPPORTUNITIES FUND
- ---------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30, 1999.... 20.50 (0.04) 0.04 - - 20.50
June 1, 1998 to May 31, 1999.......... 23.60 (0.11) (2.97) - (0.02) 20.50
June 1, 1997 to May 31, 1998.......... 19.83 (0.07) 4.37 - (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, 1999 to September 30, 1999.... 20.09 (0.09) 0.03 - - 20.03
June 1, 1998 to May 31, 1999.......... 23.32 (0.31) (2.90) - (0.02) 20.09
June 1, 1997 to May 31, 1998.......... 19.75 (0.05) 4.15 - (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, 1999 to September 30, 1999.... 20.51 (0.03) 0.02 - - 20.50
June 1, 1998 to May 31, 1999.......... 23.61 (0.11) (2.97) - (0.02) 20.51
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
</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
------------------------------------------- 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>
GROWTH EQUITY FUND (CONT'D)
- -----------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30,
1999............................ 0.05%(c)(d) 1.25%(c)(d) 1.40%(c)(d) 1.80% 22%(e) $ 644,215
June 1, 1998 to May 31, 1999...... (0.08%)(d) 1.25%(d) 1.38%(d) 7.60% 73%(e) 920,586
June 1, 1997 to May 31, 1998...... (0.11%)(d) 1.25%(d) 1.35%(d) 22.52% 47%(e) 1,033,251
June 1, 1996 to May 31, 1997...... (0.09%)(d) 1.30%(d) 1.84%(d) 14.11% 9% 895,420
November 1, 1995 to May 31,
1996............................ 0.01%(c)(d) 1.35%(c)(d) 1.85%(c)(d) 15.83% 7% 735,728
November 11, 1994(g) to October
31, 1995........................ (0.11%)(c)(d) 1.38%(c)(d) 1.92%(c)(d) 21.10% 9% 564,004
LARGE COMPANY GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30,
1999............................ (0.58%)(c)(d) 1.20%(c)(d) 1.40%(c)(d) (0.22%) 5%(f) 188,890
October 1, 1998(g) to May 31,
1999............................ (0.68%)(c)(d) 1.20%(c)(d) 1.35%(c)(d) 54.16% 28%(f) 191,233
B SHARES
June 1, 1999 to September 30,
1999............................ (1.13%)(c)(d) 1.75%(c)(d) 2.05%(c)(d) (0.39%) 5%(f) 201,351
October 1, 1998(g) to May 31,
1999............................ (1.22%)(c)(d) 1.76%(c)(d) 2.15%(c)(d) 40.01% 28%(f) 156,870
I SHARES
June 1, 1999 to September 30,
1999............................ (0.38%)(c)(d) 1.00%(c)(d) 1.04%(c)(d) (0.13%) 5%(f) 801,943
June 1, 1998 to May 31, 1999...... (0.49%)(d) 1.00%(d) 1.09%(d) 39.96% 28%(f) 645,385
June 1, 1997 to May 31, 1998...... (0.36%)(d) 1.00%(d) 1.03%(d) 32.29% 13%(f) 232,499
June 1, 1996 to May 31, 1997...... (0.18%) 0.99% 1.09% 21.93% 24% 131,768
November 1, 1995 to May 31,
1996............................ (0.30%)(c) 1.00%(c) 1.13%(c) 15.40% 17% 82,114
November 11, 1994(g) to October
31, 1995........................ (0.23%)(c) 1.00%(c) 1.20%(c) 27.51% 32% 63,567
DIVERSIFIED SMALL CAP FUND
- -----------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30,
1999............................ (0.28%)(c)(d) 1.40%(c)(d) 2.56%(c)(d) 0.21% 39%(e) 1,271
October 1, 1998(g) to May 31,
1999............................ (0.22%)(c)(d) 1.40%(c)(d) 2.30%(c)(d) 22.52% 112%(e) 1,504
B SHARES
June 1, 1999 to September 30,
1999............................ (1.14%)(c)(d) 2.15%(c)(d) 4.21%(c)(d) 0.00% 39%(e) 557
October 1, 1998(g) to May 31,
1999............................ (0.84%)(c)(d) 1.99%(c)(d) 5.63%(c)(d) 12.42% 112%(e) 476
I SHARES
June 1, 1999 to September 30,
1999............................ (0.18%)(c)(d) 1.20%(c)(d) 1.59%(c)(d) 0.33% 39%(e) 67,459
June 1, 1998 to May 31, 1999...... (0.05%)(d) 1.20%(d) 1.65%(d) (14.54%) 112%(e) 60,261
December 31, 1997(g) to May 31,
1998............................ 0.25%(c)(d) 1.21%(c)(d) 2.65%(c)(d) 5.20% 93%(e) 12,551
SMALL CAP OPPORTUNITIES FUND
- -----------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30,
1999............................ (0.44%)(c) 1.25%(c) 1.41%(c) 0.00% 40% 7,633
June 1, 1998 to May 31, 1999...... (0.47%)(d) 1.25%(d) 1.49%(d) (13.03%) 119%(f) 4,698
June 1, 1997 to May 31, 1998...... (0.43%)(d) 1.27%(d) 1.86%(d) 21.97% 55%(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%(f) 522
B SHARES
June 1, 1999 to September 30,
1999............................ (1.19%)(c) 2.00%(c) 2.48%(c) (0.30%) 40% 4,089
June 1, 1998 to May 31, 1999...... (1.28%)(d) 2.06%(d) 2.51%(d) (13.74%) 119%(f) 4,187
June 1, 1997 to May 31, 1998...... (1.21%)(d) 2.02%(d) 3.05%(d) 21.03% 55%(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%(f) 158
I SHARES
June 1, 1999 to September 30,
1999............................ (0.44%)(c) 1.25%(c) 1.29%(c) (0.05%) 40% 195,283
June 1, 1998 to May 31, 1999...... (0.47%)(d) 1.25%(d) 1.35%(d) (13.02%) 119%(f) 201,816
June 1, 1997 to May 31, 1998...... (0.40%)(d) 1.25%(d) 1.38%(d) 21.95% 55%(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%(f) 77,174
</TABLE>
[LOGO]
37
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BEGINNING NET REALIZED
NET ASSET NET AND DIVIDENDS DISTRIBUTIONS ENDING
VALUE INVESTMENT UNREALIZED FROM NET FROM NET NET ASSET
PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
----- ------ ----------- ------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
SMALL COMPANY GROWTH FUND
- ---------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30, 1999.... $27.44 $(0.05) $(0.36) $ - $ - $27.03
June 1, 1998 to May 31, 1999.......... 33.69 (0.15) (3.67) - (2.43) 27.44
June 1, 1997 to May 31, 1998.......... 31.08 (0.23) 6.88 - (4.04) 33.69
June 1, 1996 to May 31, 1997.......... 33.00 (0.18) 1.83 - (3.57) 31.08
November 1, 1995 to May 31, 1996...... 29.99 (0.07) 5.94 - (2.86) 33.00
November 11, 1994(g) to October 31,
1995................................ 21.88 (0.11) 8.22 - - 29.99
INTERNATIONAL FUND
- ---------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30, 1999.... 22.78 0.07 0.88 - - 23.73
June 1, 1998 to May 31, 1999.......... 23.84 0.04 (0.43) (0.21) (0.46) 22.78
June 1, 1997 to May 31, 1998.......... 21.66 0.03 2.35 (0.20) - 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, 1999 to September 30, 1999.... 22.66 0.02 0.86 - - 23.54
June 1, 1998 to May 31, 1999.......... 23.70 (0.06) (0.49) (0.03) (0.46) 22.66
June 1, 1997 to May 31, 1998.......... 21.55 (0.09) 2.31 (0.07) - 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, 1999 to September 30, 1999.... 22.80 0.07 0.87 - - 23.74
June 1, 1998 to May 31, 1999.......... 23.85 0.10 (0.48) (0.21) (0.46) 22.80
June 1, 1997 to May 31, 1998.......... 21.67 0.09 2.29 (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.
38
<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 COMPANY GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to September 30,
1999............................ (0.52%)(c)(d) 1.25%(c)(d) 1.30%(c)(d) (1.49%) 55%(f) $515,292
June 1, 1998 to May 31, 1999...... (0.52%)(d) 1.25%(d) 1.30%(d) (10.72%) 154%(f) 557,516
June 1, 1997 to May 31, 1998...... (0.73%)(d) 1.25%(d) 1.26%(d) 22.38% 123%(f) 748,269
June 1, 1996 to May 31, 1997...... (0.71%) 1.24% 1.29% 5.65% 124% 447,580
November 1, 1995 to May 31,
1996............................ (0.41%)(c) 1.25%(c) 1.29%(c) 21.43% 62% 378,546
November 11, 1994(g) to
October 31, 1995................ (0.47%)(c) 1.25%(c) 1.35%(c) 37.07% 107% 278,058
INTERNATIONAL FUND
- -----------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to September 30,
1999............................ 0.92%(c)(d) 1.50%(c)(d) 1.81%(c)(d) 4.17% 23%(f) 2,726
June 1, 1998 to May 31, 1999...... 0.37%(d) 1.50%(d) 1.80%(d) (1.36%) 95%(e) 2,866
June 1, 1997 to May 31, 1998...... 0.44%(d) 1.47%(d) 1.72%(d) 11.20% 37%(e) 3,342
June 1, 1996 to May 31, 1997...... 0.42%(d) 1.43%(d) 1.72%(d) 10.33% 48%(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%(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%(f) 216
B SHARES
June 1, 1999 to September 30,
1999............................ 0.18%(c)(d) 2.25%(c)(d) 2.92%(c)(d) 3.88% 23%(f) 1,960
June 1, 1998 to May 31, 1999...... (0.30%)(d) 2.25%(d) 2.89%(d) (2.08%) 95%(e) 1,973
June 1, 1997 to May 31, 1998...... (0.29%)(d) 2.22%(d) 2.81%(d) 10.39% 37%(e) 2,245
June 1, 1996 to May 31, 1997...... (0.34%)(d) 2.18%(d) 2.76%(d) 9.44% 48%(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%(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%(f) 395
I SHARES
June 1, 1999 to September 30,
1999............................ 0.90%(c)(d) 1.50%(c)(d) 1.58%(c)(d) 4.12% 23%(f) 274,448
June 1, 1998 to May 31, 1999...... 0.44%(d) 1.50%(d) 1.61%(d) (1.32%) 95%(e) 271,240
June 1, 1997 to May 31, 1998...... 0.45%(d) 1.47%(d) 1.50%(d) 11.19% 37%(e) 279,667
June 1, 1996 to May 31, 1997...... 0.40%(d) 1.43%(d) 1.44%(d) 10.27% 48%(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%(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%(f) 91,401
</TABLE>
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39
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(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 (Note 3).
(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 Portfolio(s) in which the Fund invests.
(e) Portfolio turnover rate is calculated by aggregating the results of
multiplying the Fund's investment percentage in the respective Portfolio by
the corresponding Portfolio's portfolio turnover rate.
(f) Portfolio turnover rate represents the activity from the Fund's investment
in a single Portfolio.
(g) Commencement of operations.
(h) Actual dividends per share were less than $0.01.
[LOGO]
See Notes to Financial Statements.
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 under the
Investment Company Act of 1940 (the "Act"). The Trust currently has thirty-eight
separate investment portfolios. These financial statements relate to thirteen of
those portfolios (individually, a "Fund" and, collectively, the "Funds"), each
of which is a diversified portfolio. The classes of each Fund and their
respective dates of commencement of operations are as follows:
<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES I SHARES
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Strategic Income Fund............................... N/A N/A N/A November 11, 1994
Moderate Balanced Fund.............................. N/A N/A N/A November 11, 1994
Growth Balanced Fund................................ October 14, 1998 October 1, 1998 October 1, 1998 November 11, 1994
Aggressive Balanced-Equity Fund..................... N/A N/A N/A December 2, 1997
Index Fund.......................................... N/A N/A N/A November 11, 1994
Income Equity Fund.................................. May 2, 1996 May 2, 1996 October 1, 1998 November 11, 1994
Diversified Equity Fund............................. May 2, 1996 May 6, 1996 October 1, 1998 November 11, 1994
Growth Equity Fund.................................. May 2, 1996 May 6, 1996 October 1, 1998 November 11, 1994
Large Company Growth Fund........................... October 6, 1998 October 1, 1998 N/A November 11, 1994
Diversified Small Cap Fund.......................... October 6, 1998 October 1, 1998 N/A December 31, 1997
Small Cap Opportunities Fund........................ October 9, 1996 November 8, 1996 N/A August 15, 1996
Small Company Growth Fund........................... N/A N/A N/A November 11, 1994
International Fund.................................. April 12, 1995 May 12, 1995 N/A November 11, 1994
</TABLE>
Each share of each class represents an undivided, proportionate interest in a
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 ("CDSC") imposed on most redemptions made within six years and one year
of purchase, respectively. After six 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 ARRANGEMENT--Index Fund, Income Equity Fund, Large Company Growth
Fund, Small Company Growth Fund and International 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 objective and substantially similar
investment policies as the Fund, of Core Trust (Delaware) ("Core Trust"), a
registered open-end investment company. These arrangements are commonly referred
to as master-feeder structures. Strategic Income Fund, Moderate Balanced Fund,
Growth Balanced Fund, Aggressive Balanced-Equity Fund, Diversified Equity Fund,
Growth Equity Fund and Diversified Small Cap Fund each seek to achieve its
investment objective by investing all its assets in two or more Portfolios of
Core Trust. These arrangements are commonly referred to as fund-of-funds
structures. Small Cap Opportunities Fund, effective June 1, 1999, redeemed its
interests in-kind from Schroder U.S. Smaller Companies Portfolio.
Each Portfolio directly acquires portfolio securities, and a Fund investing in
the Portfolio acquires an indirect interest in those securities. The Funds
account for their investment in a Portfolio as a partnership investment, and
record daily their share of the Portfolio's income, expenses and realized and
unrealized gain and loss. In addition, each Fund incurs its own expenses. Each
Fund may withdraw its investment from its corresponding Portfolio at any time if
the Trust's Board of Trustees determines that it is in the best interest of the
Funds and its shareholders to do so. The financial statements of the equity
Portfolios are included in this report and should be read in conjunction with
the Funds' financial statements. No Fund invests more than 50% of its investment
assets in the remaining Portfolios; therefore, the financial statements of these
Portfolios are not included in this report, but may be obtained from Shareholder
Services.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net assets from
operations during the fiscal period. Actual results could differ from those
estimates. The following summarizes the significant accounting policies of the
Funds:
SECURITY VALUATION--Each Fund determines its net asset value at 4:00 PM, Eastern
Time, on each Fund business day. 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. 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. Each Fund investing in a Portfolio records its investment at
value. Valuation of securities held in the Portfolios is discussed in the Notes
to Financial Statements of the Portfolios, which are included elsewhere in this
report.
SECURITY TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
accounted for on the trade date. Dividend income is recorded on the ex-dividend
date. Dividend income is recorded net of unrecoverable withholding tax. Interest
income is recorded on the accrual basis and includes amortization
[LOGO]
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
of premiums and accretion of discounts. The premium or discount (other than
original issue discount) on the purchase of fixed income investments with a
maturity greater than sixty days is not amortized or accreted. Identified cost
of investments sold is used to determine realized gains and losses for both
financial statement and federal income tax purposes. Transactions of securities
held in the Portfolios is discussed in the Notes to Financial Statements of the
Portfolios, which are included elsewhere in this report.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions to shareholders of net investment
income, if any, are declared and paid quarterly by each Fund. Net capital gains
if any, in excess of available capital loss carryovers, are distributed to
shareholders at least annually. Distributions are based on amounts calculated in
accordance with applicable federal income tax regulations, which may differ from
generally accepted accounting principles. These differences are due primarily to
differing treatments of income and gain on various investment securities held by
each Fund or Portfolio, timing differences and differing characterizations of
distributions made by the Fund.
FEDERAL TAXES--Each Fund intends 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.
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 include their pro-rata share of
expenses from the Portfolios.
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 Funds' operations.
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 exceed the repurchase price. In the event of default, a
Fund may have difficulties with the disposition of the collateral.
SECURITY LOANS--The Funds may receive fees or retain a portion of interest on
the investment securities or cash received as collateral for lending securities.
A Fund also continues to receive interest or dividends on the securities loaned.
Security loans are secured by collateral whose market value must always exceed
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
Refer to the Table at the end of this Note for a detailed listing of service
fees and related fee waivers and expense reimbursements.
INVESTMENT ADVISERS--The investment adviser of each Fund and each Portfolio
(other than Small Cap Opportunities Fund, International Portfolio and
International Equity Portfolio) is Norwest Investment Management, Inc.
("Adviser"), a wholly owned subsidiary of Norwest Bank Minnesota, N.A.
("Norwest"). Norwest is a subsidiary of Wells Fargo & Company. The investment
adviser of Small Cap Opportunities Fund and International Portfolio of Core
Trust is Schroder Investment Management North America Inc. ("Schroder").
Schroder is a wholly owned U.S. subsidiary of Schroder Incorporated, which is a
wholly owned U.S. subsidiary of Schroder PLC. The investment adviser of
International Equity Portfolio of Core Trust is Wells Fargo Bank, N.A. ("WFB").
WFB is a wholly owned subsidiary of Wells Fargo & Company. The Adviser, Schroder
and WFB each receives an advisory fee from its advised Fund or Portfolio based
on an annualized percentage of average daily net assets of the respective Fund
or Portfolio.
The Adviser and WFB have retained the services of certain of their affiliates as
investment subadvisers (Peregrine Capital Management, Inc., Smith Asset
Management Group, L.P. and Wells Capital Management Incorporated ("WCM")),
referred to individually as a "Subadviser" and collectively as the
"Subadvisers", on selected Portfolios. The fees related to subadvisor services
are borne directly by the Adviser and WFB and do not increase the overall fees
paid by the Portfolios to the Adviser and WFB.
Each Fund that invests in a Portfolio managed by the Adviser, Schroder or WFB
has retained the Adviser, Schroder or WFB as its investment adviser. Similarly,
in the event that a Fund withdraws its investment from a Portfolio, advised by
Schroder or a Subadviser, the Fund has retained Schroder or that Subadviser as
an investment subadviser. Under these "dormant" investment advisory
arrangements, none of the Adviser, Schroder, WFB or any Subadviser receives any
advisory fees with respect to a Fund as long as the Fund remains completely
invested in a Portfolio(s) or any other investment companies. If a Fund invests
in more than one Portfolio, Adviser, Schroder or WFB receives an investment
advisory fee from each of those Portfolios. In addition, Adviser receives from
each Fund that invests in more than one Portfolio a fee, for the "asset
allocation services" of determining the Funds' investments in the Portfolios and
how much of the Fund's assets to invest in each Portfolio.
MANAGEMENT, ADMINISTRATION AND DISTRIBUTION SERVICES--Forum Financial Services,
Inc. ("FFSI") supervises the overall management of the Trust other than
investment advisory services. Forum Administrative Services, LLC ("FAdS"), an
affiliate of FFSI, is the administrator of the Trust. For their services, FFSI
and FAdS each receive a fee with respect to Small Cap Opportunities 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.
[LOGO]
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH
AFFILIATES (CONTINUED)
Norwest receives a fee with respect to Small Cap Opportunities Fund and
International Fund at an annual rate of 0.25% of each Fund's average daily net
assets. Under this agreement, Norwest is responsible for compiling data and
preparing communications between each Fund and its shareholders, maintaining
requisite information flows between each Fund and Schroder and monitoring and
reporting to the Board on the performance of the applicable Portfolio. FFSI also
acts as the distributor of the Shares of each Fund but receives no fees for
these services.
TRANSFER AGENT, SHAREHOLDER SERVICING AGENT, DIVIDEND DISBURSING AGENT AND
CUSTODIAN--Norwest serves as the Trust's transfer agent and dividend disbursing
agent. For these services, Norwest receives a fee at an annual rate of 0.25% of
the average daily net assets attributable to each class of each Fund's shares.
The Trust has adopted a shareholder servicing plan with respect to the Growth
Balanced Fund, Large Company Growth Fund and Diversified Small Cap Fund under
which the Trust pays Norwest a shareholder servicing fee at an annual rate of up
to 0.25% of the average daily net assets of the shares owned by investors for
which the shareholder servicing agent maintained a servicing relationship.
Norwest may pay any or all amounts of these payments to various institutions
that provide shareholder servicing to their clients. Norwest also serves as the
Trust's custodian and may appoint subcustodians for foreign securities and other
assets held in foreign countries. For its custody services, Norwest receives a
fee at an annual rate of 0.02% for the first $100 million of average net assets
of each Fund, declining to 0.01% of the average net assets of each Fund in
excess of $200 million. No custody fee is directly payable by a Fund to the
extent the Fund is invested in a Portfolio.
DISTRIBUTION PLAN--The Trust has adopted a Distribution Plan (the "Plan")
pursuant to Rule 12b-1 under the Act with respect to the A Shares of Growth
Balanced Fund, Large Company Growth Fund and Diversified Small Cap Fund and the
B and C Shares of each Fund currently offering B and C Shares. The Plan
authorizes the payment to FFSI of a distribution service fee at an annual rate
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 a maintenance fee at an annual rate of 0.25% of the
average daily net assets attributable to B Shares. No Fund incurred any
maintenance fees during the period ended September 30, 1999. The distribution
payments are used to compensate FFSI for general distribution expenses of A
Shares or primarily to reimburse FFSI for commissions to brokers and interest
thereon with respect to B Shares and C Shares. The Plan may, with respect to
each share class, be terminated by vote of a majority of the 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 September 30, 1999, were as follows:
<TABLE>
<CAPTION>
UNREIMBURSED
DISTRIBUTION CHARGES
--------------------
<S> <C>
Growth Balanced Fund........................................ $ 463,087
Income Equity Fund.......................................... 2,905,717
Diversified Equity Fund..................................... 2,545,630
Growth Equity Fund.......................................... 412,730
Large Company Growth Fund................................... 8,271,902
Diversified Small Cap Fund.................................. 20,420
Small Cap Opportunities Fund................................ 193,272
International Fund.......................................... 35,152
</TABLE>
OTHER SERVICE PROVIDERS--Forum Accounting Services, LLC ("FAcS"), an affiliate
of FFSI, provides portfolio accounting services to each Fund.
FEE RATES AND WAIVERS--The following tables provide fee rates for certain
services. The tables also contains fee waivers for each service provider. The
Adviser, Norwest, FFSI and FAdS have voluntarily waived a portion of their fees
so that total expenses would not exceed specific expense limitations established
for each Fund. The Adviser, Norwest, FFSI and FAdS may, at their discretion,
revise or discontinue the voluntary fee waivers and expense reimbursements at
any time.
<TABLE>
<CAPTION>
FEES/RATES FEES WAIVED BY
---------------------- ----------------------------------- EXPENSES TOTAL FEES
ASSET REIMBURSED WAIVED AND
ALLOCATION/ TRANSFER TRANSFER BY EXPENSES
FOR THE FOUR MONTH PERIOD ADVISORY AGENT ADVISER AGENT FFSI/FADS FFSI/FADS REIMBURSED
ENDED SEPTEMBER 30, 1999 -------- ----- ------- ----- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Strategic Income Fund.................... 0.25% 0.25% $ 29,856 $ 109,836 $ 40,857 $ - $ 180,549
Moderate Balanced Fund................... 0.25% 0.25% 48,200 173,910 82,832 - 304,942
Growth Balanced Fund..................... 0.25% 0.25% 82,351 300,326 144,523 2,993 530,193
Aggressive Balanced-Equity Fund.......... 0.25% 0.25% 4,741 26,167 6,625 - 37,533
Index Fund............................... - 0.25% - 625,791 143,740 - 769,531
Income Equity Fund....................... - 0.25% - - 115,387 3,830 119,217
Diversified Equity Fund.................. 0.25% 0.25% 173,968 597,132 345,577 3,451 1,120,128
Growth Equity Fund....................... 0.25% 0.25% 59,981 133,865 112,540 7,984 314,370
</TABLE>
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43
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH
AFFILIATES (CONTINUED)
<TABLE>
<CAPTION>
FEES/RATES FEES WAIVED BY
---------------------- ----------------------------------- EXPENSES TOTAL FEES
ASSET REIMBURSED WAIVED AND
ALLOCATION/ TRANSFER TRANSFER BY EXPENSES
FOR THE FOUR MONTH PERIOD ADVISORY AGENT ADVISER AGENT FFSI/FADS FFSI/FADS REIMBURSED
ENDED SEPTEMBER 30, 1999 (CONTINUED) -------- ----- ------- ----- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Large Company Growth Fund................ - 0.25% $ - $ 28,415 $284,396 $ - $ 312,811
Diversified Small Cap Fund............... 0.25% 0.25% 24,502 47,522 10,083 4,674 86,781
Small Cap Opportunities Fund............. 0.60% 0.25% - 14 34,074 3,566 37,654
Small Company Growth Fund................ - 0.25% - - 22,402 - 22,402
International Fund....................... 0.25% 0.25% - - 10,811 2,914 13,725
</TABLE>
<TABLE>
<CAPTION>
FEES/RATES FEES WAIVED BY
---------------------- ----------------------------------- EXPENSES TOTAL FEES
ASSET REIMBURSED WAIVED AND
ALLOCATION/ TRANSFER TRANSFER BY EXPENSES
FOR THE YEAR ENDED ADVISORY AGENT ADVISER AGENT FFSI/FADS FFSI/FADS REIMBURSED
MAY 31, 1999 -------- ----- ------- ----- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Strategic Income Fund.................... 0.25% 0.25% $ 357,651 $ 19,563 $113,093 $ - $ 490,307
Moderate Balanced Fund................... 0.25% 0.25% 538,523 39,112 224,770 - 802,405
Growth Balanced Fund..................... 0.25% 0.25% 823,243 47,834 315,767 15,736 1,202,580
Aggressive Balanced-Equity Fund.......... 0.25% 0.25% 41,549 7,088 4,221 - 52,858
Index Fund............................... - 0.25% - 1,918,232 402,956 - 2,321,188
Income Equity Fund....................... - 0.25% - 106,872 402,542 32,202 541,616
Diversified Equity Fund.................. 0.25% 0.25% 1,122,346 457,800 823,786 59,379 2,463,311
Growth Equity Fund....................... 0.25% 0.25% - 434,271 380,736 24,107 839,114
Large Company Growth Fund................ - 0.25% - 311,038 280,450 - 591,488
Diversified Small Cap Fund............... 0.25% 0.25% 87,077 51,167 7,667 8,568 154,479
Small Cap Opportunities Fund............. - 0.25% - 157,453 98,591 11,478 267,522
Small Company Growth Fund................ - 0.25% - 34,773 241,848 217 276,838
International Fund....................... 0.25% 0.25% - - 10,361 6,670 17,031
</TABLE>
NOTE 4. SECURITIES TRANSACTIONS
The following table presents 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 2007)
available to offset future capital gains, as of September 30, 1999:
<TABLE>
<CAPTION>
UNREALIZED CAPITAL
------------------------------------------ TAX LOSS
APPRECIATION (DEPRECIATION) NET COST BASIS CARRYOVERS
------------ -------------- --- ---------- ----------
<S> <C> <C> <C> <C> <C>
Strategic Income Fund................................. $ 20,414,369 $ - $ 20,414,369 $ 246,677,918 $ -
Moderate Balanced Fund................................ 94,624,212 - 94,624,212 453,106,839 -
Growth Balanced Fund.................................. 197,680,563 - 197,680,563 728,740,007 -
Aggressive Balanced Equity Fund....................... 759,819 - 759,819 64,009,807 -
Index Fund............................................ 393,852,391 - 393,852,391 424,098,418 -
Income Equity Fund.................................... 418,507,672 - 418,507,672 1,281,107,690 -
Diversified Equity Fund............................... 702,718,352 - 702,718,352 1,386,050,332 -
Growth Equity Fund.................................... 289,120,192 - 289,120,192 391,284,241 -
Large Company Growth Fund............................. 166,439,171 - 166,439,171 1,023,857,676 -
Diversified Small Cap Fund............................ 1,153,346 - 1,153,346 67,933,148 1,799,488
Small Cap Opportunities Fund.......................... 20,179,936 (20,089,843) 90,093 211,172,030 19,033,555
Small Company Growth Fund............................. 6,545,577 - 6,545,577 509,147,632 26,187,245
International Fund.................................... 28,935,928 - 28,935,928 250,457,017 -
</TABLE>
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44
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 4. SECURITIES TRANSACTIONS (CONTINUED)
The following table presents the cost of purchases and proceeds from sales
(including maturities) of securities (excluding short-term investments) during
the four months ended September 30, 1999, and the year ended May 31, 1999:
<TABLE>
<CAPTION>
FOUR MONTH PERIOD FOR THE YEAR
ENDED SEPTEMBER 30, 1999 ENDED MAY 31, 1999
----------------------------- -----------------------------
COST OF PROCEEDS COST OF PROCEEDS
PURCHASES (A) FROM SALES (A) PURCHASES (A) FROM SALES (A)
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Strategic Income Fund....................................... $ 59,209,735 $ 28,248,786 $ 159,487,349 $ 111,839,551
Moderate Balanced Fund...................................... 111,997,483 58,433,205 323,730,886 228,505,564
Growth Balanced Fund........................................ 166,255,168 98,735,393 453,366,697 356,021,013
Aggressive Balanced-Equity Fund............................. 11,432,648 7,509,057 15,345,323 12,017,313
Index Fund.................................................. 98,280,760 92,474,981 131,598,173 34,855,109
Income Equity Fund.......................................... 166,615,435 79,742,594 146,220,652 47,397,260
Diversified Equity Fund..................................... 364,337,718 277,920,397 748,253,507 596,386,592
Growth Equity Fund.......................................... 180,264,981 149,385,367 780,664,312 686,498,915
Large Company Growth Fund................................... 192,399,130 62,183,056 341,159,833 205,116,029
Diversified Small Cap Fund.................................. 28,441,420 26,983,874 74,802,571 68,815,624
Small Cap Opportunities Fund................................ 81,070,923 91,331,551 269,896,303 294,253,623
Small Company Growth Fund................................... 287,726,733 328,601,066 829,545,311 890,307,389
International Fund.......................................... 67,686,859 58,715,794 229,065,907 283,041,046
</TABLE>
(a) Except for Small Cap Opportunities Fund, the Funds do not hold investment
securities directly. The Funds seek to achieve their investment objective by
investing all their investable assets in one or more Portfolios. Purchases
and sales for the Funds normally would be based on the purchases and sales
of a Fund's investment in a Portfolio rather than the underlying securities
in that Portfolio. Since the Fund has an indirect interest in the securities
held in the Portfolio, the purchases and sales disclosed are calculated by
aggregating the results of multiplying the Fund's ownership percentage of
the respective Portfolio by the corresponding Portfolio's purchases and
sales.
NOTE 5. COMMON TRUST FUND CONVERSIONS AND FUND MERGER
On September 12, 1997, Small Company Growth Fund and Income Equity Fund acquired
all the investment net assets of Peregrine Aggressive Stock Fund and Norwest
Common Trust ("CTF") Income Stock Fund, respectively. The net assets and
unrealized gain associated with the acquired fund immediately prior to
acquisition, and the shares issued as a result of the acquisition, were as
follows:
<TABLE>
<CAPTION>
PRIOR TO ACQUISITION
------------------------------- SHARES
NET ASSETS UNREALIZED GAINS ISSUED
---------- ---------------- ------
<S> <C> <C> <C>
Peregrine Aggressive Stock Fund............................. $140,478,982 $ 40,180,323 3,765,183
CTF Income Stock Fund....................................... 477,132,068 190,138,062 13,451,708
</TABLE>
The net assets of Small Company Growth Fund and Income Equity Fund immediately
after the acquisition were $729,062,354 and $1,067,643,271, respectively.
On October 10, 1998, Income Equity Fund and International Fund acquired all the
net assets of Fort Worth Stock Fund, VB&T Income Equity Fund and Founders Trust
International Fund, respectively. The net assets and unrealized gain associated
with the acquired fund immediately prior to acquisition were $30,845,547,
$8,432,265, $1,767,537 and ($43,988), respectively. The shares issued as a
result of the acquisition for Income Equity Fund and International Fund were
833,816 and 91,630, respectively. The net assets of Income Equity Fund and
International Fund immediately after the acquisition were $1,314,016,504 and
$234,522,476, respectively.
Pursuant to an Agreement and Plan of Consolidation, shareholders of the Growth
Stock Fund of MasterWorks Funds Inc. voted on November 24, 1998, to merge the
net asets of the MasterWorks Growth Stock Fund into Norwest Advantage Large
Company Growth Fund. On December 11, 1998, Large Company Growth Fund acquired
all the net assets of Masterworks Growth Stock Fund. The net assets, unrealized
gain and shares associated with the acquired fund immediately prior to
acquisition were $169,603,833, $2,637,408 and 3,418,054, respectively. The net
assets of Large Company Growth Fund immediately after the acquisition were
$545,142,430.
[LOGO]
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
NOTE 6. FUND REORGANIZATIONS
On March 25, 1999, the Board of Trustees of Norwest Advantage Funds approved the
reorganization of each Norwest Advantage Fund into a new portfolio of Wells
Fargo Funds Trust. The reorganizations are part of a plan to consolidate the
Stagecoach and Norwest Advantage fund families following last November's merger
of Wells Fargo & Company and Norwest Corporation. Norwest Advantage Funds
presented, and the shareholders approved, each proposed fund reorganization at a
special shareholders' meeting held in August 1999.
On November 5, 1999, each Norwest Advantage Fund reorganized into a
corresponding Wells Fargo Funds Trust portfolio that has substantially similar
investment objectives and investment policies. In general, the Wells Fargo Funds
Trust portfolios did not combine with other funds of the Stagecoach or Norwest
Advantage fund families.
[LOGO]
46
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
STRATEGIC INCOME FUND(a)
- --------------------------------------------------------------------------------
N/A Stable Income Portfolio of Core Trust
(Delaware) (24.9%) $ 66,607,502
N/A Managed Fixed Income Portfolio of Core
Trust (Delaware) (27.7%) 73,998,168
N/A Positive Return Bond Portfolio of Core
Trust (Delaware) (18.5%) 49,360,979
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware) (9.3%) 24,711,661
N/A Index Portfolio of Core Trust (Delaware)
(4.9%) 13,043,193
N/A Income Equity Portfolio of Core Trust
(Delaware) (4.9%) 13,062,644
N/A Disciplined Growth Portfolio of Core
Trust (Delaware) (1.0%) 2,622,169
N/A Large Company Growth Portfolio of Core
Trust (Delaware) (3.9%) 10,445,596
N/A Small Cap Index Portfolio of Core Trust
(Delaware) (0.5%) 1,327,882
N/A Small Cap Value Portfolio of Core Trust
(Delaware) (0.5%) 1,342,220
N/A Small Company Value Portfolio of Core
Trust (Delaware) (0.5%) 1,312,706
N/A Small Company Growth Portfolio of Core
Trust (Delaware) (0.5%) 1,316,578
N/A International Portfolio of Core Trust
(Delaware) (2.1%) 5,747,732
N/A International Equity Portfolio of Core
Trust (Delaware) (0.8%) 2,193,257
--------------
TOTAL INVESTMENTS (100.0%) (COST $246,677,918) $ 267,092,287
==============
- --------------------------------------------------------------------------------
MODERATE BALANCED FUND(a)
- --------------------------------------------------------------------------------
N/A Stable Income Portfolio of Core Trust
(Delaware) (14.9%) $ 81,806,201
N/A Managed Fixed Income Portfolio of Core
Trust (Delaware) (22.8%) 124,893,208
N/A Positive Return Bond Portfolio of Core
Trust (Delaware) (15.2%) 83,208,421
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware) (7.6%) 41,697,735
N/A Index Portfolio of Core Trust (Delaware)
(9.8%) 53,819,060
N/A Income Equity Portfolio of Core Trust
(Delaware) (9.8%) 53,686,325
N/A Disciplined Growth Portfolio of Core
Trust (Delaware) (2.0%) 10,818,782
N/A Large Company Growth Portfolio of Core
Trust (Delaware) (7.9%) 43,063,107
N/A Small Cap Index Portfolio of Core Trust
(Delaware) (1.0%) 5,481,946
N/A Small Cap Value Portfolio of Core Trust
(Delaware) (1.0%) 5,530,328
N/A Small Company Value Portfolio of Core
Trust (Delaware) (1.0%) 5,384,142
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
MODERATE BALANCED FUND(a) (continued)
- --------------------------------------------------------------------------------
N/A Small Company Growth Portfolio of Core
Trust (Delaware) (1.0%) $ 5,404,586
N/A International Portfolio of Core Trust
(Delaware) (4.5%) 24,591,119
N/A International Equity Portfolio of Core
Trust (Delaware) (1.5%) 8,346,091
--------------
TOTAL INVESTMENTS (100.0%) (COST $453,106,839) $ 547,731,051
==============
- --------------------------------------------------------------------------------
GROWTH BALANCED FUND(a)
- --------------------------------------------------------------------------------
N/A Managed Fixed Income Portfolio of Core
Trust (Delaware) (16.5%) $ 152,505,369
N/A Positive Return Bond Portfolio of Core
Trust (Delaware) (10.9%) 101,479,233
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware) (5.5%) 50,986,906
N/A Index Portfolio of Core Trust (Delaware)
(16.7%) 154,318,100
N/A Income Equity Portfolio of Core Trust
(Delaware) (16.6%) 154,308,353
N/A Disciplined Growth Portfolio of Core
Trust (Delaware) (3.4%) 31,126,171
N/A Large Company Growth Portfolio of Core
Trust (Delaware) (13.3%) 123,102,305
N/A Small Cap Index Portfolio of Core Trust
(Delaware) (1.7%) 15,834,843
N/A Small Cap Value Portfolio of Core Trust
(Delaware) (1.7%) 16,078,960
N/A Small Company Value Portfolio of Core
Trust (Delaware) (1.7%) 15,510,731
N/A Small Company Growth Portfolio of Core
Trust (Delaware) (1.7%) 15,542,216
N/A International Portfolio of Core Trust
(Delaware) (8.0%) 74,165,447
N/A International Equity Portfolio of Core
Trust (Delaware) (2.3%) 21,461,936
--------------
TOTAL INVESTMENTS (100.0%) (COST $728,740,007) $ 926,420,570
==============
- --------------------------------------------------------------------------------
AGGRESSIVE BALANCED - EQUITY FUND(a)
- --------------------------------------------------------------------------------
N/A Managed Fixed Income Portfolio of Core
Trust (Delaware) (10.2%) $ 6,616,433
N/A Positive Return Bond Portfolio of Core
Trust (Delaware) (6.8%) 4,416,397
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware) (3.4%) 2,205,111
N/A Index Portfolio of Core Trust (Delaware)
(19.9%) 12,857,011
N/A Income Equity Portfolio of Core Trust
(Delaware) (19.8%) 12,845,415
N/A Disciplined Growth Portfolio of Core
Trust (Delaware) (4.0%) 2,580,996
N/A Large Company Growth Portfolio of Core
Trust (Delaware) (15.8%) 10,237,551
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements.
47
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
AGGRESSIVE BALANCED - EQUITY FUND(a) (continued)
- --------------------------------------------------------------------------------
N/A Small Cap Index Portfolio of Core Trust
(Delaware) (2.0%) $ 1,311,222
N/A Small Cap Value Portfolio of Core Trust
(Delaware) (2.0%) 1,322,009
N/A Small Company Value Portfolio of Core
Trust (Delaware) (2.0%) 1,287,197
N/A Small Company Growth Portfolio of Core
Trust (Delaware) (2.0%) 1,288,748
N/A International Portfolio of Core Trust
(Delaware) (9.2%) 5,947,919
N/A International Equity Portfolio of Core
Trust (Delaware) (2.9%) 1,853,617
--------------
TOTAL INVESTMENTS (100.0%) (COST $64,009,807) $ 64,769,626
==============
- --------------------------------------------------------------------------------
INDEX FUND(a)
- --------------------------------------------------------------------------------
N/A Index Portfolio of Core Trust (Delaware)
(100.0%) $ 817,950,809
--------------
TOTAL INVESTMENTS (100.0%) (COST $424,098,418) $ 817,950,809
==============
- --------------------------------------------------------------------------------
INCOME EQUITY FUND(a)
- --------------------------------------------------------------------------------
N/A Income Equity Portfolio of Core Trust
(Delaware) (100.0%) $1,699,615,362
--------------
TOTAL INVESTMENTS (100.0%) (COST $1,281,107,690) $1,699,615,362
==============
- --------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND(a)
- --------------------------------------------------------------------------------
N/A Index Portfolio of Core Trust (Delaware)
(24.9%) $ 520,432,593
N/A Income Equity Portfolio of Core Trust
(Delaware) (24.6%) 514,977,433
N/A Disciplined Growth Portfolio of Core
Trust (Delaware) (5.0%) 104,269,697
N/A Large Company Growth Portfolio of Core
Trust (Delaware) (19.9%) 415,478,750
N/A Small Cap Index Portfolio of Core Trust
(Delaware) (2.5%) 53,208,928
N/A Small Cap Value Portfolio of Core Trust
(Delaware) (2.6%) 53,768,353
N/A Small Company Value Portfolio of Core
Trust (Delaware) (2.5%) 52,189,236
N/A Small Company Growth Portfolio of Core
Trust (Delaware) (2.5%) 51,978,590
N/A International Portfolio of Core Trust
(Delaware) (12.1%) 251,701,787
N/A International Equity Portfolio of Core
Trust (Delaware) (3.4%) 70,763,317
--------------
TOTAL INVESTMENTS (100.0%) (COST $1,386,050,332) $2,088,768,684
==============
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
GROWTH EQUITY FUND(a)
- --------------------------------------------------------------------------------
N/A Large Company Growth Portfolio of Core
Trust (Delaware) (34.9%) $ 236,994,293
N/A Small Cap Index Portfolio of Core Trust
(Delaware) (8.8%) 59,879,493
N/A Small Cap Value Portfolio of Core Trust
(Delaware) (8.8%) 60,084,116
N/A Small Company Value Portfolio of Core
Trust (Delaware) (8.7%) 59,372,283
N/A Small Company Growth Portfolio of Core
Trust (Delaware) (8.7%) 59,210,141
N/A International Portfolio of Core Trust
(Delaware) (23.3%) 158,937,365
N/A International Equity Portfolio of Core
Trust (Delaware) (6.8%) 45,926,742
--------------
TOTAL INVESTMENTS (100.0%) (COST $391,284,241) $ 680,404,433
==============
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND(a)
- --------------------------------------------------------------------------------
N/A Large Company Growth Portfolio of Core
Trust (Delaware) (100.0%) $1,190,296,847
--------------
TOTAL INVESTMENTS (100.0%) (COST $1,023,857,676) $1,190,296,847
==============
- --------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND(a)
- --------------------------------------------------------------------------------
N/A Small Cap Index Portfolio of Core Trust
(Delaware) (25.1%) $ 17,342,559
N/A Small Cap Value Portfolio of Core Trust
(Delaware) (25.3%) 17,496,955
N/A Small Company Value Portfolio of Core
Trust (Delaware) (24.8%) 17,104,276
N/A Small Company Growth Portfolio of Core
Trust (Delaware) (24.8%) 17,142,704
--------------
TOTAL INVESTMENTS (100.0%) (COST $67,933,148) $ 69,086,494
==============
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
COMMON STOCK (91.2%)
APPAREL & OTHER FINISHED PRODUCTS MADE FROM
FABRICS & SIMILAR MATERIALS (1.3%)
121,210 WestPoint Stevens, Inc. $ 2,863,586
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING (0.2%)
12,900 Central Parking Corp. 377,325
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS (0.9%)
166,044 Fairfield Communities, Inc.* 1,816,106
--------------
BUSINESS SERVICES (10.9%)
24,671 Duff & Phelps Credit Rating Co. 1,972,138
1,300 Luminant Worldwide Corp.* 39,975
176,046 Mail-Well, Inc.* 2,442,638
600 NetZero, Inc.* 15,600
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements.
48
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND (continued)
- --------------------------------------------------------------------------------
</TABLE>
BUSINESS SERVICES (continued)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
123,273 NOVA Corp.* $ 3,081,825
33,466 Penton Media, Inc. 543,823
101,974 Remedy Corp.* 2,893,512
67,660 RemedyTemp, Inc.* 972,613
140,608 Rent-A-Center, Inc.* 2,618,824
131,944 Rent-Way, Inc.* 2,506,936
61,000 Symantec Corp.* 2,194,097
400 TiVo Inc.* 11,975
64,367 True North Communications, Inc. 2,341,350
33,502 Young & Rubicam, Inc. 1,474,088
--------------
23,109,394
--------------
CHEMICALS & ALLIED PRODUCTS (3.7%)
39,144 Cambrex Corp. 1,034,870
55,091 Chattem, Inc.* 1,215,445
25,524 Ferro Corp. 543,980
86,700 Helen of Troy Ltd.* 834,488
55,200 Jones Pharma, Inc. 1,819,878
80,900 Medicis Pharmaceutical Corp.* 2,305,650
--------------
7,754,311
--------------
COMMUNICATIONS (1.6%)
10,600 Acme Communications, Inc.* 328,600
19,310 Cox Radio, Inc.* 1,148,945
17,000 CT Communications, Inc. 839,375
5,135 Entercom Communications Corp.* 184,860
37,900 Salem Communications* 966,450
--------------
3,468,230
--------------
CONSTRUCTION-SPECIAL TRADE CONTRACTORS (1.0%)
173,606 Group Maintenance America Corp.* 2,170,075
--------------
DEPOSITORY INSTITUTIONS (3.2%)
58,863 Bank United Corp. 1,905,690
104,600 Capitol Federal Financial 1,042,737
113,821 Colonial BancGroup, Inc. 1,273,372
103,702 Cullen/Frost Bankers, Inc. 2,592,550
--------------
6,814,349
--------------
EATING & DRINKING PLACES (5.1%)
82,861 CEC Entertainment, Inc.* 2,972,637
148,657 Foodmaker, Inc.* 3,707,134
66,838 Papa John's International, Inc.* 2,757,068
67,145 Ruby Tuesday, Inc. 1,309,328
--------------
10,746,167
--------------
ELECTRIC, GAS & SANITARY SERVICES (8.6%)
80,320 B.J. Services Co.* 2,555,180
46,614 Cooper Cameron Corp.* 1,759,678
407,493 El Paso Electric Co.* 3,667,437
119,400 K N Energy, Inc.* 2,679,038
85,696 Montana Power Co. 2,608,372
241,530 Safety-Kleen Corp.* 2,913,456
63,386 Weatherfold International, Inc.* 2,028,352
--------------
18,211,513
--------------
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
SMALL CAP OPPORTUNITIES FUND (continued)
- --------------------------------------------------------------------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT (12.4%)
91,300 Actel Corp.* $ 1,734,700
60,400 Amphenol Corp.* 2,993,575
44,865 ANTEC Corp.* 2,383,453
28,300 Benchmark Electronics, Inc.* 999,344
39,804 CTS Corp. 2,288,730
34,275 Dallas Semiconductor Corp. 1,831,570
39,900 DII Group, Inc.* 1,403,981
56,500 Integrated Device Technology, Inc.* 1,045,250
53,500 L-3 Communications Holdings, Inc.* 2,019,625
60,800 Lennox International, Inc. 942,400
70,200 Plexus Corp.* 2,149,875
57,400 Power-One, Inc.* 1,463,700
97,328 SLI, Inc.* 2,074,303
35,700 Tekelec* 493,106
101,800 UCAR International, Inc.* 2,322,313
--------------
26,145,925
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT &
RELATED SERVICES (3.3%)
87,983 ACNielson Corp.* 1,996,114
66,000 Core Laboratories N.V.* 1,241,625
92,257 EG&G, Inc. 3,672,982
--------------
6,910,721
--------------
FOOD & KINDRED PRODUCTS (2.2%)
54,920 American Italian Pasta Co.* 1,572,085
104,685 Aurora Foods, Inc.* 1,674,960
81,600 International Home Foods, Inc.* 1,428,000
--------------
4,675,045
--------------
GENERAL MERCHANDISE STORES (4.0%)
97,110 Ames Department Stores, Inc.* 3,095,382
93,306 Family Dollar Stores, Inc. 1,971,089
119,595 Shopko Stores, Inc.* 3,468,255
--------------
8,534,726
--------------
HEALTH SERVICES (6.1%)
103,076 AmeriSource Health Corp.* 2,441,612
111,712 Haemonetics Corp.* 2,199,330
59,809 Invacare Corp. 1,170,014
84,800 Lincare Holdings, Inc.* 2,260,454
92,200 ProVantage Health Services, Inc.* 950,813
108,634 Province Healthcare Co.* 1,249,291
98,807 Quest Diagnostics, Inc.* 2,568,982
--------------
12,840,496
--------------
HOLDING & OTHER INVESTMENT OFFICES (2.1%)
85,080 Affiliated Managers Group, Inc.* 2,318,430
91,374 Manufactured Home Communities, Inc. 2,135,867
--------------
4,454,297
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (3.2%)
29,400 Astec Industries, Inc.* 709,275
1,300 Foundry Networks, Inc.* 163,800
97,822 Hussmann International, Inc. 1,662,974
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements.
49
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND (continued)
- --------------------------------------------------------------------------------
</TABLE>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
35,923 Symbol Technologies, Inc. $ 1,207,911
67,821 Zebra Technologies Corp.* 3,083,739
--------------
6,827,699
--------------
INSURANCE CARRIERS (1.0%)
95,222 AmerUs Life Holdings, Inc. 2,017,516
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS;
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (1.0%)
9,000 Bard (C.R.), Inc. 423,563
65,600 CONMED Corp.* 1,607,200
--------------
2,030,763
--------------
MOTION PICTURES (0.9%)
125,692 Hollywood Entertainment Corp.* 1,885,380
--------------
NONDEPOSITORY CREDIT INSTITUTIONS (1.5%)
142,182 Heller Financial, Inc. 3,199,095
--------------
OIL & GAS EXTRACTION (1.0%)
69,231 Hanover Compressor Co.* 2,202,411
--------------
PAPER & ALLIED PRODUCTS (0.7%)
152,497 Ivex Packaging Corp.* 1,524,970
--------------
PERSONAL SERVICES (1.3%)
138,385 Regis Corp. 2,663,911
--------------
PETROLEUM REFINING & RELATED INDUSTRIES (0.6%)
52,018 Elcor Corp. 1,300,450
--------------
PRIMARY METAL INDUSTRIES (1.6%)
114,272 Mueller Industries, Inc.* 3,392,450
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.3%)
60,846 Valassis Communications, Inc.* 2,673,421
--------------
REAL ESTATE (2.0%)
163,875 Catellus Development Corp.* 1,925,531
88,142 Pinnacle Holdings, Inc.* 2,302,710
--------------
4,228,241
--------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (0.3%)
20,283 Spartech Corp. 594,545
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (0.9%)
238,961 Dal-Tile International, Inc.* 1,896,753
--------------
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
SMALL CAP OPPORTUNITIES FUND (continued)
- --------------------------------------------------------------------------------
TRANSPORTATION BY AIR (1.6%)
112,530 Mesaba Holdings, Inc.* $ 1,322,228
93,435 SkyWest, Inc. 2,049,730
--------------
3,371,958
--------------
TRANSPORTATION EQUIPMENT (2.2%)
39,100 AAR Corp. 703,800
44,515 SPX Corp.* 4,039,736
--------------
4,743,536
--------------
WHOLESALE TRADE-DURABLE GOODS (1.7%)
202,700 Heilig-Meyers Co. 962,825
97,661 Sybron International Corp.* 2,624,639
--------------
3,587,464
--------------
WHOLESALE TRADE-NONDURABLE GOODS (1.8%)
76,023 Henry Schein, Inc.* 1,083,328
155,965 School Specialty, Inc.* 2,631,909
--------------
3,715,237
--------------
TOTAL COMMON STOCK (COST $184,385,285) 192,748,066
--------------
REPURCHASE AGREEMENTS (8.8%)
18,514,057 Deutsche Bank, 5.48%, 10/1/99
(cost $18,514,057)** 18,514,057
--------------
TOTAL INVESTMENTS (100.0%) (COST $202,899,342) $ 211,262,123
==============
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND(a)
- --------------------------------------------------------------------------------
N/A Small Company Growth Portfolio of Core
Trust (Delaware) (100.0%) $ 515,693,209
--------------
TOTAL INVESTMENTS (100.0%) (COST $509,147,632) $ 515,693,209
==============
- --------------------------------------------------------------------------------
INTERNATIONAL FUND(a)
- --------------------------------------------------------------------------------
N/A International Portfolio of Core Trust
(Delaware) (100.0%) $ 279,392,945
--------------
TOTAL INVESTMENTS (100.0%) (COST $250,457,017) $ 279,392,945
==============
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements.
50
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS
- --------------------------------------------------------------------------------
* Non-income producing security.
** The Portfolios have invested in a joint repurchase agreement. The following
represents the collateral on the Deutsche Bank joint repurchase agreement:
U.S. Government Agency Securities, 5.00% - 9.00%, 5/15/16 - 12/15/28; with a
total market value of $507,053,673.
(a) The following percentages represent each Fund's percent ownership of its
respective Portfolios as of September 30, 1999:
<TABLE>
<CAPTION>
AGGRESSIVE
STRATEGIC MODERATE GROWTH BALANCED- INCOME
INCOME BALANCED BALANCED EQUITY INDEX EQUITY
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Stable Income Portfolio...................... 19.41% 23.84% N/A N/A N/A N/A
Managed Fixed Income Portfolio............... 16.45% 27.77% 33.91% 1.47% N/A N/A
Positive Return Bond Portfolio............... 16.48% 27.77% 33.87% 1.47% N/A N/A
Strategic Value Bond Portfolio............... 10.04% 16.93% 20.71% 0.90% N/A N/A
Index Portfolio.............................. 0.82% 3.40% 9.75% 0.81% 51.65% N/A
Income Equity Portfolio...................... 0.53% 2.19% 6.29% 0.52% N/A 69.24%
Disciplined Growth Portfolio................. 1.30% 5.37% 15.45% 1.28% N/A N/A
Large Company Growth Portfolio............... 0.51% 2.11% 6.04% 0.50% N/A N/A
Small Cap Index Portfolio.................... 0.86% 3.55% 10.26% 0.85% N/A N/A
Small Cap Value Portfolio.................... 0.78% 3.20% 9.29% 0.76% N/A N/A
Small Company Value Portfolio................ 0.86% 3.54% 10.19% 0.85% N/A N/A
Small Company Growth Portfolio............... 0.20% 0.81% 2.33% 0.19% N/A N/A
International Portfolio...................... 0.71% 3.06% 9.23% 0.74% N/A N/A
International Equity Portfolio............... 1.46% 5.54% 14.26% 1.23% N/A N/A
</TABLE>
<TABLE>
<CAPTION>
LARGE DIVERSIFIED SMALL
DIVERSIFIED GROWTH COMPANY SMALL COMPANY
EQUITY EQUITY GROWTH CAP GROWTH INTERNATIONAL
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Index Portfolio.............................. 32.86% N/A N/A N/A N/A N/A
Income Equity Portfolio...................... 20.98% N/A N/A N/A N/A N/A
Disciplined Growth Portfolio................. 51.77% N/A N/A N/A N/A N/A
Large Company Growth Portfolio............... 20.38% 11.63% 58.39% N/A N/A N/A
Small Cap Index Portfolio.................... 34.46% 38.79% N/A 11.23% N/A N/A
Small Cap Value Portfolio.................... 31.08% 34.73% N/A 10.11% N/A N/A
Small Company Value Portfolio................ 34.30% 39.02% N/A 11.24% N/A N/A
Small Company Growth Portfolio............... 7.79% 8.87% N/A 2.57% 77.25% N/A
International Portfolio...................... 31.31% 19.77% N/A N/A N/A 34.75%
International Equity Portfolio............... 47.00% 30.51% N/A N/A N/A N/A
</TABLE>
[LOGO]
51
<PAGE>
(This page has been left blank intentionally.)
52
<PAGE>
NORWEST ADVANTAGE PERFORMA FUNDS
ANNUAL REPORT
SEPTEMBER 30, 1999
PERFORMA DISCIPLINED GROWTH FUND
PERFORMA SMALL CAP VALUE FUND
<PAGE>
INDEPENDENT AUDITORS' REPORT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders
Norwest Advantage Funds
We have audited the accompanying statements of assets
and liabilities of Performa Disciplined Growth Fund and
Performa Small Cap Value Fund, portfolios of Norwest
Advantage Funds (collectively the "Funds"), including the
schedules of investments, as of September 30, 1999, and
the related statements of operations for the periods
presented on page 56, statements of changes in net assets
for the periods presented on page 57, and financial
highlights for the periods presented on page 58. These
financial statements and financial highlights are the
responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and
financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of
securities owned as of September 30, 1999, by
correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of the funds as
of September 30, 1999, the results of their operations,
changes in their net assets and financial highlights for
each of the periods indicated in the paragraph above, in
conformity with generally accepted accounting principles.
/s/ KMPG LLP
------------------------
Boston, Massachusetts
November 18, 1999
[LOGO]
54
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERFORMA PERFORMA
DISCIPLINED SMALL CAP
GROWTH FUND VALUE FUND
----------- ----------
<S> <C> <C>
ASSETS
Investments (Notes 1 and 2)
Investments at cost..................................... $39,574,798 $15,049,929
Net unrealized appreciation............................. 10,406,621 2,353,649
----------- -----------
TOTAL INVESTMENTS AT VALUE.................................. 49,981,419 17,403,578
Receivable for Fund shares issued......................... 340 2,251
Organization costs, net of amortization (Note 2).......... 4,519 4,519
Other receivables......................................... - 945
----------- -----------
TOTAL ASSETS................................................ 49,986,278 17,411,293
----------- -----------
LIABILITIES
Payable to related parties (Note 3)....................... 748 -
Accrued expenses and other liabilities.................... 12,636 6,868
----------- -----------
TOTAL LIABILITIES........................................... 13,384 6,868
----------- -----------
NET ASSETS.................................................. $49,972,894 $17,404,425
=========== ===========
COMPONENTS OF NET ASSETS
Paid in capital........................................... $39,522,469 $18,405,289
Accumulated net realized gain (loss) from investments..... 43,804 (3,354,513)
Net unrealized appreciation of investments................ 10,406,621 2,353,649
----------- -----------
NET ASSETS.................................................. $49,972,894 $17,404,425
=========== ===========
SHARES OF BENEFICIAL INTEREST............................... 4,380,608 2,044,022
NET ASSET VALUE PER SHARE AND OFFERING PRICE PER SHARE (Net
Assets divided by Shares of
Beneficial Interest)....................................... $ 11.41 $ 8.51
</TABLE>
[LOGO]
See Notes to Financial Statements.
55
<PAGE>
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERFORMA DISCIPLINED PERFORMA SMALL CAP
GROWTH FUND VALUE FUND
----------------------------------- -----------------------------------
FOUR MONTHS YEAR FOUR MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999
------------------ ------------ ------------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIOS (NOTE 1)
Interest income..................................... $ 14,777 $ 46,752 $ 12,318 $ 36,948
Dividend income..................................... 149,736 401,493 26,123 58,340
Securities lending income........................... 2,991 11,171 2,181 6,543
Net expenses........................................ (175,206) (402,622) (61,908) (126,647)
----------- ----------- ---------- -----------
TOTAL INVESTMENT INCOME (NOTE 1)...................... (7,702) 56,794 (21,286) (24,816)
----------- ----------- ---------- -----------
EXPENSES
Management and Administration (Note 3).............. 9,030 20,774 2,928 6,058
Transfer agent (Note 3)............................. 45,148 103,865 14,637 30,286
Accounting (Note 3)................................. 4,000 13,500 4,000 13,500
Legal............................................... 252 387 83 132
Registration........................................ 6,244 21,222 5,064 14,263
Audit............................................... 8,000 7,378 8,000 7,251
Trustees............................................ 254 393 80 121
Amortization of organization costs (Note 2)......... 496 1,488 496 1,488
Miscellaneous....................................... 551 9,744 283 2,538
----------- ----------- ---------- -----------
TOTAL EXPENSES........................................ 73,975 178,751 35,571 75,637
Fees waived and expenses reimbursed (Note 4)........ (27,083) (61,936) (21,634) (44,831)
----------- ----------- ---------- -----------
NET EXPENSES.......................................... 46,892 116,815 13,937 30,806
----------- ----------- ---------- -----------
NET INVESTMENT LOSS................................... (54,594) (60,021) (35,223) (55,622)
----------- ----------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM PORTFOLIOS (NOTE 1)
Net Realized Gain (Loss) from Investments............. 1,517,460 (1,387,934) 665,890 (4,020,164)
Net Change in Unrealized Appreciation (Depreciation)
of Investments....................................... (1,428,717) 11,275,557 361,215 1,990,551
----------- ----------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM PORTFOLIOS............................ 88,743 9,887,623 1,027,105 (2,029,613)
----------- ----------- ---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................... $ 34,149 $ 9,827,602 $ 991,882 $(2,085,235)
=========== =========== ========== ===========
</TABLE>
[LOGO]
See Notes to Financial Statements.
56
<PAGE>
FOR THE YEARS OR PERIODS ENDED
STATEMENTS OF CHANGES IN NET ASSETS MAY 31, 1998, MAY 31, 1999
AND SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERFORMA PERFORMA
DISCIPLINED SMALL CAP
GROWTH FUND VALUE FUND
----------- ----------
<S> <C> <C>
NET ASSETS--OCTOBER 15, 1997 (COMMENCEMENT OF
OPERATIONS)...................................... $ - $ -
----------- -----------
OPERATIONS
Net investment income (loss).................... 4,626 (9,089)
Net realized gain (loss) from investments....... (85,722) 21,613
Net change in unrealized appreciation of
investments................................... 559,781 1,883
----------- -----------
Net increase in net assets resulting from
operations.................................... 478,685 14,407
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income........................... (2,977) -
----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 9)
Sale of shares.................................. 13,680,823 6,801,733
Reinvestment of distributions................... 433 -
Redemption of shares............................ (1,832,263) (393,884)
----------- -----------
NET INCREASE FROM CAPITAL SHARE TRANSACTIONS...... 11,848,993 6,407,849
----------- -----------
NET INCREASE IN NET ASSETS........................ 12,324,701 6,422,256
----------- -----------
NET ASSETS--MAY 31, 1998 (a)...................... 12,324,701 6,422,256
----------- -----------
OPERATIONS
Net investment loss............................. (60,021) (55,622)
Net realized loss from investments sold......... (1,387,934) (4,020,164)
Net change in unrealized appreciation of
investments................................... 11,275,557 1,990,551
----------- -----------
Net increase (decrease) in net assets resulting
from operations............................... 9,827,602 (2,085,235)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income........................... (1,648) -
Net realized gain on investments................ - (12,763)
----------- -----------
Total distributions to shareholders............. (1,648) (12,763)
----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 9)
Sale of shares.................................. 21,926,569 16,716,253
Shares issued in conversion (Note 7)............ 22,258,550 -
Redemption of shares............................ (12,029,255) (4,249,795)
----------- -----------
NET INCREASE FROM CAPITAL SHARE TRANSACTIONS...... 32,155,864 12,466,458
----------- -----------
NET INCREASE IN NET ASSETS........................ 41,981,818 10,368,460
----------- -----------
NET ASSETS--MAY 31, 1999 (b)...................... 54,306,519 16,790,716
----------- -----------
OPERATIONS
Net investment loss............................. (54,594) (35,223)
Net realized gain from investments.............. 1,517,460 665,890
Net change in unrealized appreciation
(depreciation) of investments................. (1,428,717) 361,215
----------- -----------
Net increase in net assets resulting from
operations.................................... 34,149 991,882
----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 9)
Sale of shares.................................. 1,884,982 485,799
Redemption of shares............................ (6,252,756) (863,972)
----------- -----------
NET DECREASE FROM CAPITAL SHARE TRANSACTIONS...... (4,367,774) (378,173)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS............. (4,333,625) 613,709
----------- -----------
NET ASSETS--SEPTEMBER 30, 1999 (c)................ $49,972,894 $17,404,425
=========== ===========
(a) Undistributed net investment income, May 31,
1998.......................................... $ 1,649 $ -
=========== ===========
(b) Undistributed (distributions in excess of) net
investment income, May 31, 1999............... $ - $ -
=========== ===========
(c) Undistributed (distributions in excess of) net
investment income, September 30, 1999......... $ - $ -
=========== ===========
</TABLE>
[LOGO]
See Notes to Financial Statements.
57
<PAGE>
FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERFORMA
DISCIPLINED PERFORMA SMALL
GROWTH FUND CAP VALUE FUND
------------------------------------------------ -----------------------------------------------
FOUR MONTHS YEAR PERIOD FOUR MONTHS YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MAY 31, MAY 31, SEPTEMBER 30 MAY 31, MAY 31,
1999 1999 1998(A) 1999 1999 1998(A)
-------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Beginning Net Asset Value
Per Share................ $ 11.41 $ 10.44 $ 10.00 $ 8.04 $ 10.16 $ 10.00
------------ ------------ ------------ ------------ ------------ ------------
Investment Operations
Net investment income
(loss)................ (0.01) (0.01) 0.01 (0.02) (0.03) (0.01)
Net realized and
unrealized gain (loss)
on investments........ 0.01 0.98 0.44 0.49 (2.08) 0.17
------------ ------------ ------------ ------------ ------------ ------------
Total from investment
operations............... - 0.97 0.45 0.47 (2.11) 0.16
------------ ------------ ------------ ------------ ------------ ------------
Distributions From
Net investment income... - - (0.01) - - -
Net realized gain from
investments........... - - - - (0.01) -
------------ ------------ ------------ ------------ ------------ ------------
Total distributions....... - - (0.01) - (0.01) -
------------ ------------ ------------ ------------ ------------ ------------
Ending Net Asset Value Per
Share.................... $ 11.41 $ 11.41 $ 10.44 $ 8.51 $ 8.04 $ 10.16
============ ============ ============ ============ ============ ============
Total Return(b)........... 0.00% 9.29% 4.50% 5.85% (20.77)% 1.60%
Ratio/Supplementary Data
Net Assets at End of
Period (000's
omitted).............. $ 49,973 $ 54,307 $ 12,325 $ 17,404 $ 16,791 $ 6,422
Ratios to Average Net
Assets
Expenses including
reimbursement/waiver
of fees(d)............ 1.23%(c) 1.25% 1.25%(c) 1.29%(c) 1.30% 1.30%(c)
Expenses excluding
reimbursement/waiver
of fees(d)............ 1.43%(c) 1.45% 2.44%(c) 1.71%(c) 1.72% 3.54%(c)
Net investment income
(loss) including
reimbursement/waiver
of fees(d)............ (0.30)%(c) (0.14)% 0.14%(c) (0.60)%(c) (0.46)% (0.56)%(c)
Portfolio Turnover
Rate(e).................. 21% 90% 68%(f) 49% 108% 79%(f)
</TABLE>
(a) Fund commenced operations on October 15, 1997.
(b) Total return would have been lower had certain expenses not been waived or
reimbursed during the period shown (Note 4).
(c) Annualized.
(d) Includes expenses allocated from the Portfolio in which the Fund invests.
(e) Portfolio turnover rate represents the activity from the Fund's investment
in its corresponding Portfolio.
(f) The Portfolio in which the Fund invests had a different period of operations
than the Fund.
[LOGO]
See Notes to Financial Statements.
58
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 under the
Investment Company Act of 1940 (the "Act"). The Trust currently has thirty-eight
separate investment portfolios. These financial statements relate to two of
those portfolios: Performa Disciplined Growth Fund and Performa Small Cap Value
Fund (individually, a "Fund" and, collectively, the "Funds"), each of which is a
diversified portfolio. The Funds commenced operations on October 15, 1997. Under
its Trust instrument, the Trust is authorized to issue an unlimited number of
shares of beneficial interest without par value.
MASTER-FEEDER ARRANGEMENT--Each Fund seeks 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 objective and substantially similar investment policies as
each Fund, of Core Trust (Delaware) ("Core Trust"), a registered open-end
investment company. This arrangement is commonly referred to as a master-feeder
structure.
Each Portfolio directly acquires portfolio securities, and a Fund investing in
the Portfolio acquires an indirect interest in those securities. The Funds
account for their investment in a Portfolio as a partnership investment, and
record daily their share of the Portfolio's income, expenses and realized and
unrealized gain and loss. In addition, each Fund incurs its own expenses. Each
Fund may withdraw its investment from its corresponding Portfolio at any time if
the Trust's Board of Trustees determines that it is in the best interest of the
Funds and its shareholders to do so. The financial statements of the 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--Each Fund determines its net asset value at 4:00 PM, Eastern
Time, on each Fund business day. Each Fund records its investment in the
Portfolios at value. Valuation of securities held in the Portfolios is discussed
in the Notes to the Financial Statements of the Portfolios, which are included
elsewhere in this report.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions to shareholders of net investment
income, if any, are declared and paid annually for the Funds. 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.
These differences are due primarily to differing treatments of income and gain
on various investment securities held by each Portfolio, timing differences and
differing characterizations of distributions made by the Fund.
FEDERAL TAXES--Each Fund intends 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 federal excise
tax. Therefore, no federal income or excise tax provision is required.
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.
ORGANIZATION COSTS--The costs incurred by the Funds in connection with their
organization and registration of shares have been capitalized and are being
amortized using the straight-line method over a five-year period beginning on
the commencement of the Funds' operations.
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISERS--The investment adviser of each Portfolio is Norwest
Investment Management, Inc. ("Adviser"), a subsidiary of Norwest Bank Minnesota,
N. A. ("Norwest"). Norwest is a subsidiary of Wells Fargo & Company.
Each Fund that invests in a Portfolio managed by the Adviser has retained the
Adviser as its investment adviser. Under this "dormant" investment advisory
arrangement, the Adviser does not receive any advisory fees with respect to a
Fund as long as the Fund remains completely invested in a Portfolio(s) or any
other investment companies. Fees paid to the Adviser are discussed more fully in
the Notes to Financial Statements of Core Trust, which are included else where
in this report.
MANAGEMENT AND ADMINISTRATION--Forum Financial Services, Inc. ("FFSI") and Forum
Administrative Services, LLC ("FAdS") serve as the manager and administrator of
the Funds, respectively. For their services, FFSI and FAdS each receive a fee at
an annual rate of 0.025% of each Fund's average daily net assets.
[LOGO]
59
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH
AFFILIATES (CONTINUED)
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT--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 each Fund's average daily net
assets.
OTHER SERVICE PROVIDER--Forum Accounting Services, LLC, an affiliate of FFSI,
provides portfolio accounting services to each Fund.
NOTE 4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
Norwest, FFSI and FAdS have voluntarily waived a portion of their fees and
reimbursed certain expenses, including indirect expenses borne by the Funds as a
result of investing in the Portfolios, so that total expenses would not exceed
specific expense limitations established for each Fund. Norwest, FFSI and FAdS,
at their discretion, may revise or discontinue the voluntary fee waivers and
expense reimbursements at any time. For the four months ended September 30,
1999, and the year ended May 31, 1999, fees waived and expenses reimbursed by
the Trust's service providers were as follows:
<TABLE>
<CAPTION>
FEES WAIVED BY EXPENSES TOTAL FEES
----------------------- REIMBURSED WAIVED AND
TRANSFER BY EXPENSES
AGENT FAdS/FFSI FFSI/FAdS REIMBURSED
----- --------- --------- ----------
<S> <C> <C> <C> <C>
FOR THE FOUR MONTH PERIOD
ENDED SEPTEMBER 30, 1999
Performa Disciplined Growth Fund............................ $19,902 $ 7,181 $ - $27,083
Performa Small Cap Value Fund............................... 13,752 2,928 4,954 21,634
</TABLE>
<TABLE>
<CAPTION>
FEES WAIVED BY EXPENSES TOTAL FEES
----------------------- REIMBURSED WAIVED AND
TRANSFER BY EXPENSES
AGENT FAdS/FFSI FFSI/FAdS REIMBURSED
----- --------- --------- ----------
<S> <C> <C> <C> <C>
FOR THE YEAR ENDED MAY 31, 1999
Performa Disciplined Growth Fund............................ $43,666 $18,270 $ - $61,936
Performa Small Cap Value Fund............................... 18,172 6,058 20,601 44,831
</TABLE>
NOTE 5. SECURITIES TRANSACTIONS
The following table presents the cost of purchases and proceeds from sales
(including maturities) of securities (excluding short-term investments) during
the four months ended September 30, 1999, and the year ended May 31, 1999:
<TABLE>
<CAPTION>
FOUR MONTH PERIOD FOR THE YEAR
ENDED SEPTEMBER 30, 1999 ENDED MAY 31, 1999
------------------------------ ------------------------------
COST OF PROCEEDS COST OF PROCEEDS
PURCHASES (A) FROM SALES (A) PURCHASES (A) FROM SALES (A)
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Performa Disciplined Growth Fund $13,475,214 $10,509,254 $46,267,024 $41,578,723
Performa Small Cap Value Fund 9,580,007 6,419,500 21,087,957 14,772,991
</TABLE>
(a) The Fund does not hold investment securities directly. The Fund seeks to
achieve its investment objective by investing all of its investable assets
in one or more Portfolios. Purchases and sales for a Fund normally would be
based on the purchases and sales of a Fund's investment in a Portfolio
rather than the underlying securities in that Portfolio. Since a Fund has an
indirect interest in the securities held in the Portfolio, the purchases and
sales disclosed are calculated by aggregating the results of multiplying the
Fund's ownership percentage of the respective Portfolio by the corresponding
Portfolio's purchases and sales.
NOTE 6. FEDERAL INCOME TAX BASIS
For federal income tax purposes, the tax cost of investment securities owned by
the Funds, as of September 30, 1999, was the same for financial statement and
federal income tax purposes. Aggregate and net unrealized appreciation for the
Funds as of September 30, 1999, was $10,406,621 for Performa Disciplined Growth
Fund and $2,353,649 for Performa Small Cap Value Fund. Performa Small Cap Value
Fund has capital loss carryovers of $3,354,794 available to offset future
taxable income, expiring in 2007.
[LOGO]
60
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
NOTE 7. COMMON TRUST FUND CONVERSION
On October 9, 1998, Performa Disciplined Growth Fund acquired all the net assets
of Founder's Trust Equity Fund. The net assets and unrealized gain associated
with the acquired fund immediately prior to acquisition were $22,258,550 and
$428,367, respectively, and the shares issued as a result of the acquisition
were 2,579,206. The net assets of Performa Disciplined Growth Fund immediately
after the acquisition were $43,599,062.
NOTE 8. FUND REORGANIZATIONS
On March 25, 1999, the Board of Trustees of Norwest Advantage Funds approved the
reorganization of each Norwest Advantage Fund into a new portfolio of Wells
Fargo Funds Trust. The reorganizations are part of a plan to consolidate the
Stagecoach and Norwest Advantage fund families following last November's merger
of Wells Fargo & Company and Norwest Corporation. Norwest Advantage Funds
presented, and the shareholders approved, each proposed fund reorganization at a
special shareholders' meeting held in August 1999.
On November 5, 1999, each Norwest Advantage Fund reorganized into a
corresponding Wells Fargo Funds Trust portfolio that has substantially similar
investment objectives and investment policies. In general, the Wells Fargo Funds
Trust portfolios did not combine with other funds of the Stagecoach or Norwest
Advantage fund families.
NOTE 9. CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SHARES SHARES ISSUED NET
SHARES ISSUED FOR DIVIDEND SHARES INCREASE
SUBSCRIBED IN CONVERSION REINVESTMENT REDEEMED (DECREASE)
---------- ------------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Performa Disciplined Growth Fund
Period(a) Ended May 31, 1998.......................... 1,361,533 - 47 (181,089) 1,180,491
Year Ended May 31, 1999............................... 2,112,642 2,579,206 - (1,114,800) 3,577,048
Four Months Ended September 30, 1999.................. 162,960 - - (539,891) (376,931)
Performa Small Cap Value Fund
Period(a) Ended May 31, 1998.......................... 670,920 - - (38,592) 632,328
Year Ended May 31, 1999............................... 1,952,490 - - (496,519) 1,455,971
Four Months Ended September 30, 1999.................. 57,397 - - (101,674) (44,277)
</TABLE>
(a) The Fund commenced operations on October 15, 1997.
SUPPLEMENTARY INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
FEDERAL TAX STATUS OF DIVIDENDS DECLARED
For federal income tax purposes, dividends from short-term capital gains are
classified as ordinary income.
[LOGO]
61
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PERFORMA DISCIPLINED GROWTH FUND
- --------------------------------------------------------------------------------
N/A Disciplined Growth Portfolio of Core
Trust (Delaware) (100.0%) $ 49,981,419
--------------
TOTAL INVESTMENTS (100.0%) (COST $39,574,798) $ 49,981,419
==============
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
PERFORMA SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
N/A Small Cap Value Portfolio of Core Trust
(Delaware) (100.0%) $ 17,403,578
--------------
TOTAL INVESTMENTS (100.0%) (COST $15,049,929) $ 17,403,578
==============
</TABLE>
As of September 30, 1999, Performa Disciplined Growth Fund's investment in the
Disciplined Growth Portfolio of Core Trust represents 24.82% of the portfolio's
net assets. Performa Small Cap Value Fund's investment in the Small Cap Value
Portfolio of Core Trust represents 10.06% of the portfolio's net assets.
[LOGO]
See Notes to Financial Statements.
62
<PAGE>
ANNUAL REPORT
SEPTEMBER 30, 1999
INDEX PORTFOLIO
INCOME EQUITY PORTFOLIO
DISCIPLINED GROWTH PORTFOLIO
LARGE COMPANY GROWTH PORTFOLIO
SMALL CAP INDEX PORTFOLIO
SMALL CAP VALUE PORTFOLIO
SMALL COMPANY VALUE PORTFOLIO
SMALL COMPANY GROWTH PORTFOLIO
INTERNATIONAL PORTFOLIO
INTERNATIONAL EQUITY PORTFOLIO
CORE TRUST (DELAWARE)
<PAGE>
(This page has been left blank intentionally.)
64
<PAGE>
INDEPENDENT AUDITORS' REPORT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
To the Board of Trustees and Partners
Core Trust (Delaware)
We have audited the accompanying statements of assets
and liabilities of Index Portfolio, Income Equity
Portfolio, Disciplined Growth Portfolio, Large Company
Growth Portfolio, Small Cap Index Portfolio, Small Cap
Value Portfolio, Small Company Value Portfolio, Small
Company Growth Portfolio, International Portfolio and
International Equity Portfolio, ten portfolios of Core
Trust (Delaware), (collectively, the "Portfolios"),
including the schedules of investments, as of September
30, 1999, and the related statements of operations for the
periods presented on pages 68 to 71, statements of changes
in net assets for the periods presented on pages 72 to 73
and financial highlights for the periods presented on
page 74. These financial statements and financial
highlights are the responsibility of the Portfolios'
management. Our responsibility is to express an opinion on
these financial statements and financial highlights based
on our audits. The statements of changes in net assets and
the financial highlights for all periods ending prior to
June 1, 1998 for Index Portfolio, Small Company Value
Portfolio, Small Company Growth Portfolio, and
International Portfolio were audited by other auditors,
whose report dated July 21, 1998 expressed an unqualified
opinion on those financial statements and financial
highlights.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and
financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of
securities owned as of September 30, 1999, by
correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of the
Portfolios as of September 30, 1999, the results of their
operations, changes in their net assets and financial
highlights for each of the periods indicated in the first
paragraph above, in conformity with generally accepted
accounting principles.
/s/ KPMG LLP
Boston, Massachusetts
November 18, 1999
CORE TRUST (DELAWARE)
65
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME DISCIPLINED
INDEX EQUITY GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------
<S> <C> <C> <C>
ASSETS
Investments (Note 2)
Investments at cost........ $1,060,009,766 $1,486,932,560 $168,022,253
Repurchase agreements at
cost.................... - 60,742,736 -
Net unrealized appreciation
(depreciation).......... 525,192,203 903,665,959 31,140,846
-------------- -------------- ------------
TOTAL INVESTMENTS AT VALUE... 1,585,201,969 2,451,341,255 199,163,099
Cash......................... - - -
Collateral for securities
loaned (Notes 2 and 6)... 259,210,830 167,861,154 50,735,213
Receivable from daily
variation margin on
futures contracts
(Note 2)................. 448,350 - -
Receivable for investments
sold..................... 34,899 - 2,708,870
Receivable for dividends,
interest and other
receivables.............. 1,769,945 4,336,094 128,726
Organization costs, net of
amortization (Note 2).... 725 7,889 -
-------------- -------------- ------------
TOTAL ASSETS.................. 1,846,666,718 2,623,546,392 252,735,908
-------------- -------------- ------------
LIABILITIES
Payable to custodian due to
account overdraft
(Note 3)................. - - 428,827
Payable for investments
purchased................ 3,652,909 - -
Payable for securities loaned
(Notes 2 and 6).......... 259,210,830 167,861,154 50,735,213
Payable for forward foreign
currency contracts....... - - -
Payable to custodian
(Note 3)................. 14,573 21,946 2,944
Payable to investment adviser
and affiliates
(Note 3)................. 200,159 1,035,801 154,296
Payable to administrator
(Note 3)................. - 39,491 -
Accrued expenses and other
liabilities.............. 29,585 25,326 15,396
-------------- -------------- ------------
TOTAL LIABILITIES............. 263,108,056 168,983,718 51,336,676
-------------- -------------- ------------
NET ASSETS.................... $1,583,558,662 $2,454,562,674 $201,399,232
============== ============== ============
</TABLE>
See Notes to Financial Statements.
CORE TRUST (DELAWARE)
66
<PAGE>
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE COMPANY SMALL CAP SMALL CAP SMALL COMPANY SMALL COMPANY
GROWTH INDEX VALUE VALUE GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments (Note 2)
Investments at cost........ $1,247,640,963 $167,288,249 $144,774,683 $150,636,098 $586,389,111
Repurchase agreements at
cost.................... 47,689,127 - 7,846,984 3,964,573 29,491,143
Net unrealized appreciation
(depreciation).......... 743,406,773 (14,129,929) 20,142,915 (3,407,654) 61,171,342
-------------- ------------ ------------ ------------ ------------
TOTAL INVESTMENTS AT VALUE... 2,038,736,863 153,158,320 172,764,582 151,193,017 677,051,596
Cash......................... - - - - 1,338,000
Collateral for securities
loaned (Notes 2 and 6)... 166,752,238 6,351,627 13,417,813 5,862,363 -
Receivable from daily
variation margin on
futures contracts
(Note 2)................. - 151,350 - - -
Receivable for investments
sold..................... - 1,126,521 925,036 889,320 8,325,733
Receivable for dividends,
interest and other
receivables.............. 805,782 534,176 31,104 215,088 145,903
Organization costs, net of
amortization (Note 2).... 7,793 - - 324 331
-------------- ------------ ------------ ------------ ------------
TOTAL ASSETS.................. 2,206,302,676 161,321,994 187,138,535 158,160,112 686,861,563
-------------- ------------ ------------ ------------ ------------
LIABILITIES
Payable to custodian due to
account overdraft
(Note 3)................. - - - - -
Payable for investments
purchased................ - 523,104 536,424 - 18,746,977
Payable for securities loaned
(Notes 2 and 6).......... 166,752,238 6,351,627 13,417,813 5,862,363 -
Payable for forward foreign
currency contracts....... - - - - -
Payable to custodian
(Note 3)................. 18,378 2,334 2,564 2,332 6,858
Payable to investment adviser
and affiliates
(Note 3)................. 1,106,202 32,070 136,417 115,351 506,535
Payable to administrator
(Note 3)................. 24,372 - 1,315 273 2,008
Accrued expenses and other
liabilities.............. 24,226 25,967 17,482 19,222 22,413
-------------- ------------ ------------ ------------ ------------
TOTAL LIABILITIES............. 167,925,416 6,935,102 14,112,015 5,999,541 19,284,791
-------------- ------------ ------------ ------------ ------------
NET ASSETS.................... $2,038,377,260 $154,386,892 $173,026,520 $152,160,571 $667,576,772
============== ============ ============ ============ ============
<CAPTION>
INTERNATIONAL
INTERNATIONAL EQUITY
PORTFOLIO PORTFOLIO
--------- ---------
<S> <C> <C>
ASSETS
Investments (Note 2)
Investments at cost........ $706,957,430 $127,808,234
Repurchase agreements at
cost.................... - 2,253,221
Net unrealized appreciation
(depreciation).......... 97,371,691 18,510,839
------------ ------------
TOTAL INVESTMENTS AT VALUE... 804,329,121 148,572,294
Cash......................... - -
Collateral for securities
loaned (Notes 2 and 6)... 68,281,600 8,171,670
Receivable from daily
variation margin on
futures contracts
(Note 2)................. - -
Receivable for investments
sold..................... 10,261,126 2,000,948
Receivable for dividends,
interest and other
receivables.............. 6,449,239 342,893
Organization costs, net of
amortization (Note 2).... 725 -
------------ ------------
TOTAL ASSETS.................. 889,321,811 159,087,805
------------ ------------
LIABILITIES
Payable to custodian due to
account overdraft
(Note 3)................. 13,486 -
Payable for investments
purchased................ 12,381,009 164,400
Payable for securities loaned
(Notes 2 and 6).......... 68,281,600 8,171,670
Payable for forward foreign
currency contracts....... 4,012,524 -
Payable to custodian
(Note 3)................. 37,616 6,445
Payable to investment adviser
and affiliates
(Note 3)................. 550,627 153,034
Payable to administrator
(Note 3)................. 99,416 26,349
Accrued expenses and other
liabilities.............. 26,052 20,947
------------ ------------
TOTAL LIABILITIES............. 85,402,330 8,542,845
------------ ------------
NET ASSETS.................... $803,919,481 $150,544,960
============ ============
</TABLE>
CORE TRUST (DELAWARE)
67
<PAGE>
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME
INDEX EQUITY
PORTFOLIO PORTFOLIO
--------------------------------- ---------------------------------
FOUR MONTHS YEAR FOUR MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999
------------------ ------------ ------------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income.............. $ 7,134,863 $21,699,973 $ 15,342,388 $ 41,679,387
Interest income.............. 848,084 1,826,068 1,286,537 2,004,284
Securities lending income
(Note 2)................. 92,418 412,363 124,674 286,152
------------- ------------ ------------- ------------
TOTAL INVESTMENT INCOME...... 8,075,365 23,938,404 16,753,599 43,969,823
------------- ------------ ------------- ------------
EXPENSES
Advisory (Note 3)............ 849,293 2,351,029 4,258,945 10,582,022
Administration (Note 3)...... 283,098 783,676 425,895 1,058,202
Custody (Note 3)............. 61,620 171,735 90,179 226,640
Accounting (Note 3).......... 50,000 153,500 28,000 84,500
Legal........................ 3,206 5,734 4,822 7,832
Audit........................ 20,000 36,331 20,000 33,176
Trustees..................... 1,010 2,934 1,682 4,025
Pricing...................... 15,963 28,971 1,915 3,035
Amortization of organization
costs (Note 2)........... 2,024 6,072 988 2,964
Miscellaneous................ 5,591 35,927 7,491 10,424
------------- ------------ ------------- ------------
TOTAL EXPENSES............... 1,291,805 3,575,909 4,839,917 12,012,820
Fees waived (Note 4)...... (286,572) (779,240) (257,478) (425,107)
------------- ------------ ------------- ------------
NET EXPENSES................. 1,005,233 2,796,669 4,582,439 11,587,713
------------- ------------ ------------- ------------
NET INVESTMENT INCOME
(LOSS)................... 7,070,132 21,141,735 12,171,160 32,382,110
------------- ------------ ------------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) from
Securities................. 14,370,473 21,545,068 55,447,612 10,703,154
Foreign currency
transactions........... - - - -
Financial futures
transactions........... 3,547,453 4,808,254 - -
------------- ------------ ------------- ------------
Net Realized Gain (Loss) from
Investments.............. 17,917,926 26,353,322 55,447,612 10,703,154
------------- ------------ ------------- ------------
Net Change in Unrealized
Appreciation
(Depreciation) of
Securities................. (246,554,792) 248,662,572 (176,477,105) 273,274,958
Foreign currency
transactions........... - - - -
Financial futures
transactions........... (510,977) (1,352,724) - -
------------- ------------ ------------- ------------
Net Change in Unrealized
Appreciation
(Depreciation) of
Investments................ (247,065,769) 247,309,848 (176,477,105) 273,274,958
------------- ------------ ------------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... (229,147,843) 273,663,170 (121,029,493) 283,978,112
------------- ------------ ------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $(222,077,711) $294,804,905 $(108,858,333) $316,360,222
============= ============ ============= ============
</TABLE>
See Notes to Financial Statements.
CORE TRUST (DELAWARE)
68
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED LARGE COMPANY SMALL CAP
GROWTH GROWTH INDEX
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------- --------------------------------- ------------------
FOUR MONTHS YEAR FOUR MONTHS YEAR FOUR MONTHS
ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999
------------------ ------------ ------------------ ------------ ------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income.............. $ 577,278 $ 1,604,613 $ 2,868,517 $ 5,071,653 $ 338,725
Interest income.............. 56,278 195,273 1,224,771 1,723,786 97,738
Securities lending income
(Note 2)................. 11,489 44,687 79,780 399,953 13,570
----------- ----------- ------------ ------------ -----------
TOTAL INVESTMENT INCOME...... 645,045 1,844,573 4,173,068 7,195,392 450,033
----------- ----------- ------------ ------------ -----------
EXPENSES
Advisory (Note 3)............ 622,670 1,481,103 4,418,020 9,043,943 114,972
Administration (Note 3)...... 34,593 82,284 339,848 695,688 22,994
Custody (Note 3)............. 11,874 29,685 72,970 154,138 8,565
Accounting (Note 3).......... 20,000 67,500 27,000 81,500 48,000
Legal........................ 397 518 3,931 4,925 259
Audit........................ 16,000 14,649 20,000 25,506 16,000
Trustees..................... 131 299 1,284 2,528 93
Pricing...................... 1,273 2,338 1,455 2,252 18,763
Amortization of organization
costs (Note 2)........... - - 972 2,916 -
Miscellaneous................ 583 799 5,664 5,914 422
----------- ----------- ------------ ------------ -----------
TOTAL EXPENSES............... 707,521 1,679,175 4,891,144 10,019,310 230,068
Fees waived (Note 4)...... (36,372) (79,837) (213,833) (137,320) (25,681)
----------- ----------- ------------ ------------ -----------
NET EXPENSES................. 671,149 1,599,338 4,677,311 9,881,990 204,387
----------- ----------- ------------ ------------ -----------
NET INVESTMENT INCOME
(LOSS)................... (26,104) 245,235 (504,243) (2,686,598) 245,646
----------- ----------- ------------ ------------ -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) from
Securities................. 4,099,644 (3,141,344) 37,071,984 181,443,136 (1,621,989)
Foreign currency
transactions........... - - - - -
Financial futures
transactions........... - - - - 614,226
----------- ----------- ------------ ------------ -----------
Net Realized Gain (Loss) from
Investments.............. 4,099,644 (3,141,344) 37,071,984 181,443,136 (1,007,763)
----------- ----------- ------------ ------------ -----------
Net Change in Unrealized
Appreciation
(Depreciation) of
Securities................. (4,448,279) 24,845,328 (53,035,427) 267,110,572 2,448,242
Foreign currency
transactions........... - - - - -
Financial futures
transactions........... - - - - (482,374)
----------- ----------- ------------ ------------ -----------
Net Change in Unrealized
Appreciation
(Depreciation) of
Investments................ (4,448,279) 24,845,328 (53,035,427) 267,110,572 1,965,868
----------- ----------- ------------ ------------ -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... (348,635) 21,703,984 (15,963,443) 448,553,708 958,105
----------- ----------- ------------ ------------ -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $ (374,739) $21,949,219 $(16,467,686) $445,867,110 $ 1,203,751
=========== =========== ============ ============ ===========
<CAPTION>
SMALL CAP
INDEX
PORTFOLIO
------------
YEAR
ENDED
MAY 31, 1999
------------
<S> <C>
INVESTMENT INCOME
Dividend income.............. $ 965,070
Interest income.............. 426,748
Securities lending income
(Note 2)................. 66,961
------------
TOTAL INVESTMENT INCOME...... 1,458,779
------------
EXPENSES
Advisory (Note 3)............ 303,388
Administration (Note 3)...... 60,678
Custody (Note 3)............. 23,188
Accounting (Note 3).......... 146,500
Legal........................ 407
Audit........................ 15,350
Trustees..................... 232
Pricing...................... 34,335
Amortization of organization
costs (Note 2)........... -
Miscellaneous................ 2,948
------------
TOTAL EXPENSES............... 587,026
Fees waived (Note 4)...... (54,976)
------------
NET EXPENSES................. 532,050
------------
NET INVESTMENT INCOME
(LOSS)................... 926,729
------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) from
Securities................. 2,836,817
Foreign currency
transactions........... -
Financial futures
transactions........... (368,383)
------------
Net Realized Gain (Loss) from
Investments.............. 2,468,434
------------
Net Change in Unrealized
Appreciation
(Depreciation) of
Securities................. (10,222,537)
Foreign currency
transactions........... -
Financial futures
transactions........... 621,911
------------
Net Change in Unrealized
Appreciation
(Depreciation) of
Investments................ (9,600,626)
------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... (7,132,192)
------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $ (6,205,463)
============
</TABLE>
CORE TRUST (DELAWARE)
69
<PAGE>
STATEMENTS OF OPERATIONS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP SMALL COMPANY
VALUE VALUE
PORTFOLIO PORTFOLIO
--------------------------------- ---------------------------------
FOUR MONTHS YEAR FOUR MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999
------------------ ------------ ------------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income.............. $ 206,511 $ 533,700 $ 896,355 $ 2,218,558
Interest income.............. 111,676 329,352 57,941 270,560
Securities lending income
(Note 2)................. 16,144 52,810 4,637 40,894
---------- ------------ ----------- ------------
TOTAL INVESTMENT INCOME...... 334,331 915,862 958,933 2,530,012
---------- ------------ ----------- ------------
EXPENSES
Advisory (Note 3)............ 432,524 1,021,928 472,849 1,297,868
Administration (Note 3)...... 22,764 53,786 26,269 72,104
Custody (Note 3)............. 8,496 21,017 9,547 26,631
Accounting (Note 3).......... 20,000 64,000 20,000 74,500
Legal........................ 254 357 292 547
Audit........................ 16,000 14,625 16,000 21,572
Trustees..................... 86 201 112 277
Pricing...................... 1,883 3,458 2,956 5,468
Amortization of organization
costs (Note 2)........... - - 640 1,920
Miscellaneous................ 386 506 514 710
---------- ------------ ----------- ------------
TOTAL EXPENSES............... 502,393 1,179,878 549,179 1,501,597
Fees waived (Note 4)...... (21,449) (50,969) (25,997) (68,547)
---------- ------------ ----------- ------------
NET EXPENSES................. 480,944 1,128,909 523,182 1,433,050
---------- ------------ ----------- ------------
NET INVESTMENT INCOME
(LOSS)................... (146,613) (213,047) 435,751 1,096,962
---------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) from
Securities................. 4,186,619 (30,465,857) 2,279,774 (4,559,162)
Foreign currency
transactions........... - - - -
Financial futures
transactions........... - - - -
---------- ------------ ----------- ------------
Net Realized Gain (Loss) from
Investments.............. 4,186,619 (30,465,857) 2,279,774 (4,559,162)
---------- ------------ ----------- ------------
Net Change in Unrealized
Appreciation
(Depreciation) of
Securities................. 5,216,949 9,548,982 (8,987,103) (9,541,409)
Foreign currency
transactions........... - - - -
Financial futures
transactions........... - - - -
---------- ------------ ----------- ------------
Net Change in Unrealized
Appreciation
(Depreciation) of
Investments................ 5,216,949 9,548,982 (8,987,103) (9,541,409)
---------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... 9,403,568 (20,916,875) (6,707,329) (14,100,571)
---------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $9,256,955 $(21,129,922) $(6,271,578) $(13,003,609)
========== ============ =========== ============
(a) Net of foreign withholding
taxes of $825,997.
(b) Net of foreign withholding
taxes of $2,251,666.
(c) Net of foreign withholding
taxes of $111,167.
(d) Net of foreign withholding
taxes of $175,078.
(e) Beginning of period,
February 12, 1999.
</TABLE>
See Notes to Financial Statements.
CORE TRUST (DELAWARE)
70
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY INTERNATIONAL
GROWTH INTERNATIONAL EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------- ---------------------------------- ------------------
FOUR MONTHS YEAR FOUR MONTHS YEAR FOUR MONTHS
ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 1999
------------------ ------------ ------------------ ------------ ------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income.............. $ 1,160,412 $ 3,134,738 $ 5,808,649(a) $ 12,099,251(b) $ 791,060(c)
Interest income.............. 542,393 2,205,073 697,479 4,278,287 50,754
Securities lending income
(Note 2)................. 3,211 - 50,875 261,711 5,192
------------ ------------ ----------- ------------- -----------
TOTAL INVESTMENT INCOME...... 1,706,016 5,339,811 6,557,003 16,639,249 847,006
------------ ------------ ----------- ------------- -----------
EXPENSES
Advisory (Note 3)............ 2,116,131 6,579,692 1,223,197 3,937,758 632,379
Administration (Note 3)...... 117,563 365,538 407,732 1,312,586 26,349
Custody (Note 3)............. 28,513 88,108 141,739 562,901 25,542
Accounting (Note 3).......... 29,000 88,500 40,500 129,500 28,000
Legal........................ 1,317 2,854 10,694 6,556 3,816
Audit........................ 19,000 26,633 18,000 38,507 16,000
Trustees..................... 484 1,450 557 1,695 109
Pricing...................... 3,438 5,701 13,515 41,274 4,942
Amortization of organization
costs (Note 2)........... 648 1,944 2,024 6,072 -
Miscellaneous................ 2,228 3,620 2,516 4,507 454
------------ ------------ ----------- ------------- -----------
TOTAL EXPENSES............... 2,318,322 7,164,040 1,860,474 6,041,356 737,591
Fees waived (Note 4)...... (97,671) (1,559) (191,876) (717,860) -
------------ ------------ ----------- ------------- -----------
NET EXPENSES................. 2,220,651 7,162,481 1,668,598 5,323,496 737,591
------------ ------------ ----------- ------------- -----------
NET INVESTMENT INCOME
(LOSS)................... (514,635) (1,822,670) 4,888,405 11,315,753 109,415
------------ ------------ ----------- ------------- -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) from
Securities................. 57,486,291 (77,753,826) 34,739,409 87,310,735 2,641,824
Foreign currency
transactions........... - - (1,356,852) (3,237,271) (14,299)
Financial futures
transactions........... - - - - -
------------ ------------ ----------- ------------- -----------
Net Realized Gain (Loss) from
Investments.............. 57,486,291 (77,753,826) 33,382,557 84,073,464 2,627,525
------------ ------------ ----------- ------------- -----------
Net Change in Unrealized
Appreciation
(Depreciation) of
Securities................. (65,332,424) (15,097,262) (951,222) (104,592,618) 13,301,834
Foreign currency
transactions........... - - (2,885,929) (1,919,141) 13,888
Financial futures
transactions........... - - - - -
------------ ------------ ----------- ------------- -----------
Net Change in Unrealized
Appreciation
(Depreciation) of
Investments................ (65,332,424) (15,097,262) (3,837,151) (106,511,759) 13,315,722
------------ ------------ ----------- ------------- -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... (7,846,133) (92,851,088) 29,545,406 (22,438,295) 15,943,247
------------ ------------ ----------- ------------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $ (8,360,768) $(94,673,758) $34,433,811 $ (11,122,542) $16,052,662
============ ============ =========== ============= ===========
(a) Net of foreign withholding
taxes of $825,997.
(b) Net of foreign withholding
taxes of $2,251,666.
(c) Net of foreign withholding
taxes of $111,167.
(d) Net of foreign withholding
taxes of $175,078.
(e) Beginning of period,
February 12, 1999.
<CAPTION>
INTERNATIONAL
EQUITY
PORTFOLIO
---------------
PERIOD
ENDED
MAY 31, 1999(E)
---------------
<S> <C>
INVESTMENT INCOME
Dividend income.............. $1,089,495(d)
Interest income.............. 393,937
Securities lending income
(Note 2)................. -
----------
TOTAL INVESTMENT INCOME...... 1,483,432
----------
EXPENSES
Advisory (Note 3)............ 536,814
Administration (Note 3)...... 22,367
Custody (Note 3)............. 27,215
Accounting (Note 3).......... 29,286
Legal........................ 8,173
Audit........................ 20,000
Trustees..................... 3,385
Pricing...................... 885
Amortization of organization
costs (Note 2)........... -
Miscellaneous................ 179
----------
TOTAL EXPENSES............... 648,304
Fees waived (Note 4)...... (22,367)
----------
NET EXPENSES................. 625,937
----------
NET INVESTMENT INCOME
(LOSS)................... 857,495
----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) from
Securities................. (121,711)
Foreign currency
transactions........... 1,902
Financial futures
transactions........... -
----------
Net Realized Gain (Loss) from
Investments.............. (119,809)
----------
Net Change in Unrealized
Appreciation
(Depreciation) of
Securities................. 5,209,005
Foreign currency
transactions........... (12,932)
Financial futures
transactions........... -
----------
Net Change in Unrealized
Appreciation
(Depreciation) of
Investments................ 5,196,073
----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... 5,076,264
----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $5,933,759
==========
(a) Net of foreign withholding
taxes of $825,997.
(b) Net of foreign withholding
taxes of $2,251,666.
(c) Net of foreign withholding
taxes of $111,167.
(d) Net of foreign withholding
taxes of $175,078.
(e) Beginning of period,
February 12, 1999.
</TABLE>
CORE TRUST (DELAWARE)
71
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME DISCIPLINED
INDEX EQUITY GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------
<S> <C> <C> <C>
NET ASSETS, MAY 31, 1997...... $ 455,992,618 $ - $ -
-------------- -------------- ------------
OPERATIONS
Net investment income
(loss)................... 18,212,835 27,302,997 418,520
Net realized gain (loss) from
investments.............. 40,577,843 21,124,145 (4,466,320)
Net change in unrealized
appreciation
(depreciation) of
investments.............. 232,315,725 331,743,519 11,172,163
-------------- -------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ 291,106,403 380,170,661 7,124,363
-------------- -------------- ------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions (Note 8)....... 791,000,962 1,656,178,203 127,393,238
Withdrawals.................. (152,820,060) (80,546,731) (3,752,382)
-------------- -------------- ------------
Net increase from
transactions in
investors' beneficial
interest................. 638,180,902 1,575,631,472 123,640,856
-------------- -------------- ------------
NET INCREASE IN NET ASSETS.... 929,287,305 1,955,802,133 130,765,219
-------------- -------------- ------------
NET ASSETS, MAY 31, 1998
(A)....................... 1,385,279,923 1,955,802,133 130,765,219
-------------- -------------- ------------
OPERATIONS
Net investment income
(loss)................... 21,141,735 32,382,110 245,235
Net realized gain (loss) from
investments.............. 26,353,322 10,703,154 (3,141,344)
Net change in unrealized
appreciation
(depreciation) of
investments.............. 247,309,848 273,274,958 24,845,328
-------------- -------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ 294,804,905 316,360,222 21,949,219
-------------- -------------- ------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ 338,399,367 299,593,165 56,556,716
Withdrawals.................. (187,842,788) (153,177,747) (20,286,491)
-------------- -------------- ------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. 150,556,579 146,415,418 36,270,225
-------------- -------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 445,361,484 462,775,640 58,219,444
-------------- -------------- ------------
NET ASSETS, MAY 31, 1999...... 1,830,641,407 2,418,577,773 188,984,663
-------------- -------------- ------------
OPERATIONS
Net investment income
(loss)................... 7,070,132 12,171,160 (26,104)
Net realized gain (loss) from
investments.............. 17,917,926 55,447,612 4,099,644
Net change in unrealized
appreciation
(depreciation) of
investments.............. (247,065,769) (176,477,105) (4,448,279)
-------------- -------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ (222,077,711) (108,858,333) (374,739)
-------------- -------------- ------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ 168,104,830 170,936,080 24,852,681
Withdrawals.................. (193,109,864) (26,092,846) (12,063,373)
-------------- -------------- ------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. (25,005,034) 144,843,234 12,789,308
-------------- -------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... (247,082,745) 35,984,901 12,414,569
-------------- -------------- ------------
NET ASSETS, SEPTEMBER 30,
1999...................... $1,583,558,662 $2,454,562,674 $201,399,232
============== ============== ============
(a) Beginning of Period....... Jun 1, 1997 Jun 1, 1997 Oct 1, 1997
</TABLE>
See Notes to Financial Statements.
CORE TRUST (DELAWARE)
72
<PAGE>
FOR THE YEARS OR PERIODS ENDED MAY 31, 1998, MAY 31, 1999 AND SEPTEMBER 30,
1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE
COMPANY SMALL CAP SMALL CAP SMALL COMPANY SMALL COMPANY
GROWTH INDEX VALUE VALUE GROWTH INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS, MAY 31, 1997...... $ - $ - $ - $ - $ - $539,296,879
-------------- ------------ ------------ ------------ ------------- -------------
OPERATIONS
Net investment income
(loss)................... (254,889) 190,716 (103,303) 1,194,736 (3,539,839) 10,517,288
Net realized gain (loss) from
investments.............. 103,483,455 (31,860) (2,328,929) 49,410,647 157,449,385 18,785,716
Net change in unrealized
appreciation
(depreciation) of
investments.............. 175,686,535 (6,730,568) 5,377,263 1,904,286 (8,948,010) 78,979,779
-------------- ------------ ------------ ------------ ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ 278,915,101 (6,571,712) 2,945,031 52,509,669 144,961,536 108,282,783
-------------- ------------ ------------ ------------ ------------- -------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions (Note 8)....... 1,039,939,974 130,179,195 109,215,794 182,821,915 893,179,444 406,915,054
Withdrawals.................. (236,856,954) (1,115,038) (7,890,976) (87,806,139) (144,077,860) (103,309,130)
-------------- ------------ ------------ ------------ ------------- -------------
Net increase from
transactions in
investors' beneficial
interest................. 803,083,020 129,064,157 101,324,818 95,015,776 749,101,584 303,605,924
-------------- ------------ ------------ ------------ ------------- -------------
NET INCREASE IN NET ASSETS.... 1,081,998,121 122,492,445 104,269,849 147,525,445 894,063,120 411,888,707
-------------- ------------ ------------ ------------ ------------- -------------
NET ASSETS, MAY 31, 1998
(A)....................... 1,081,998,121 122,492,445 104,269,849 147,525,445 894,063,120 951,185,586
-------------- ------------ ------------ ------------ ------------- -------------
OPERATIONS
Net investment income
(loss)................... (2,686,598) 926,729 (213,047) 1,096,962 (1,822,670) 11,315,753
Net realized gain (loss) from
investments.............. 181,443,136 2,468,434 (30,465,857) (4,559,162) (77,753,826) 84,073,464
Net change in unrealized
appreciation
(depreciation) of
investments.............. 267,110,572 (9,600,626) 9,548,982 (9,541,409) (15,097,262) (106,511,759)
-------------- ------------ ------------ ------------ ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ 445,867,110 (6,205,463) (21,129,922) (13,003,609) (94,673,758) (11,122,542)
-------------- ------------ ------------ ------------ ------------- -------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ 761,913,767 38,398,557 56,411,434 58,867,576 87,802,760 138,115,465
Withdrawals.................. (442,325,167) (17,939,415) (13,783,251) (24,741,714) (153,483,916) (280,972,859)
-------------- ------------ ------------ ------------ ------------- -------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. 319,588,600 20,459,142 42,628,183 34,125,862 (65,681,156) (142,857,394)
-------------- ------------ ------------ ------------ ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 765,455,710 14,253,679 21,498,261 21,122,253 (160,354,914) (153,979,936)
-------------- ------------ ------------ ------------ ------------- -------------
NET ASSETS, MAY 31, 1999...... 1,847,453,831 136,746,124 125,768,110 168,647,698 733,708,206 797,205,650
-------------- ------------ ------------ ------------ ------------- -------------
OPERATIONS
Net investment income
(loss)................... (504,243) 245,646 (146,613) 435,751 (514,635) 4,888,405
Net realized gain (loss) from
investments.............. 37,071,984 (1,007,763) 4,186,619 2,279,774 57,486,291 33,382,557
Net change in unrealized
appreciation
(depreciation) of
investments.............. (53,035,427) 1,965,868 5,216,949 (8,987,103) (65,332,424) (3,837,151)
-------------- ------------ ------------ ------------ ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ (16,467,686) 1,203,751 9,256,955 (6,271,578) (8,360,768) 34,433,811
-------------- ------------ ------------ ------------ ------------- -------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ 431,740,313 45,525,219 68,898,740 25,136,140 31,454,531 96,548,384
Withdrawals.................. (224,349,198) (29,088,202) (30,897,285) (35,351,689) (89,225,197) (124,268,364)
-------------- ------------ ------------ ------------ ------------- -------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. 207,391,115 16,437,017 38,001,455 (10,215,549) (57,770,666) (27,719,980)
-------------- ------------ ------------ ------------ ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 190,923,429 17,640,768 47,258,410 (16,487,127) (66,131,434) 6,713,831
-------------- ------------ ------------ ------------ ------------- -------------
NET ASSETS, SEPTEMBER 30,
1999...................... $2,038,377,260 $154,386,892 $173,026,520 $152,160,571 $667,576,772 $803,919,481
============== ============ ============ ============ ============= =============
(a) Beginning of Period....... Jun 1, 1997 Apr 9, 1998 Oct 1, 1997 Jun 1, 1997 Jun 1, 1997 Jun 1, 1997
<CAPTION>
INTERNATIONAL
EQUITY
PORTFOLIO
---------
<S> <C>
NET ASSETS, MAY 31, 1997...... $ -
------------
OPERATIONS
Net investment income
(loss)................... -
Net realized gain (loss) from
investments.............. -
Net change in unrealized
appreciation
(depreciation) of
investments.............. -
------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ -
------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions (Note 8)....... -
Withdrawals.................. -
------------
Net increase from
transactions in
investors' beneficial
interest................. -
------------
NET INCREASE IN NET ASSETS.... -
------------
NET ASSETS, MAY 31, 1998
(A)....................... -
------------
OPERATIONS
Net investment income
(loss)................... 857,495
Net realized gain (loss) from
investments.............. (119,809)
Net change in unrealized
appreciation
(depreciation) of
investments.............. 5,196,073
------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ 5,933,759
------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ 154,175,553
Withdrawals.................. (5,557,182)
------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. 148,618,371
------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 154,552,130
------------
NET ASSETS, MAY 31, 1999...... 154,552,130
------------
OPERATIONS
Net investment income
(loss)................... 109,415
Net realized gain (loss) from
investments.............. 2,627,525
Net change in unrealized
appreciation
(depreciation) of
investments.............. 13,315,722
------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ 16,052,662
------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ 19,384,770
Withdrawals.................. (39,444,602)
------------
Net increase (decrease) from
transactions in
investors' beneficial
interest................. (20,059,832)
------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... (4,007,170)
------------
NET ASSETS, SEPTEMBER 30,
1999...................... $150,544,960
============
(a) Beginning of Period....... Feb 12, 1999
</TABLE>
CORE TRUST (DELAWARE)
73
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS(A)
----------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) NET EXPENSES GROSS EXPENSES(C) PORTFOLIO TURNOVER RATE
---------------------------- ------------ ----------------- -----------------------
<S> <C> <C> <C> <C>
INDEX PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
June 1, 1999 to September 30,
1999............................. 1.25% 0.18% 0.23% 11%
June 1, 1998 to May 31, 1999....... 1.35% 0.18% 0.23% 4%
June 1, 1997 to May 31, 1998....... 1.60% 0.19% 0.24% 7%
June 1, 1996 to May 31, 1997....... 2.03% 0.11% 0.31% 7%
November 1, 1995 to May 31, 1996... 2.35% 0.17% 0.32% 7%
November 11, 1994 (b) to October
31, 1995......................... 2.42% 0.17% 0.33% 8%
INCOME EQUITY PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
June 1, 1999 to September 30,
1999............................. 1.43% 0.54% 0.57% 5%
June 1, 1998 to May 31, 1999....... 1.53% 0.55% 0.57% 3%
June 1, 1997 (b) to May 31, 1998... 1.76% 0.52% 0.57% 3%
DISCIPLINED GROWTH PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
June 1, 1999 to September 30,
1999............................. (0.04%) 0.97% 1.02% 21%
June 1, 1998 to May 31, 1999....... 0.15% 0.97% 1.02% 90%
October 1, 1997 (b) to May 31,
1998............................. 0.55% 1.01% 1.06% 68%
LARGE COMPANY GROWTH PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
June 1, 1999 to September 30,
1999............................. (0.07%) 0.69% 0.72% 5%
June 1, 1998 to May 31, 1999....... (0.19%) 0.71% 0.72% 28%
June 1, 1997 (b) to May 31, 1998... (0.03%) 0.67% 0.73% 13%
SMALL CAP INDEX PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
June 1, 1999 to September 30,
1999............................. 0.53% 0.44% 0.50% 23%
June 1, 1998 to May 31, 1999....... 0.76% 0.44% 0.48% 26%
April 9, 1998 (b) to May 31,
1998............................. 1.04% 0.52% 0.54% 2%
SMALL CAP VALUE PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
June 1, 1999 to September 30,
1999............................. (0.32%) 1.06% 1.10% 49%
June 1, 1998 to May 31, 1999....... (0.20%) 1.05% 1.10% 108%
October 1, 1997 (b) to May 31,
1998............................. (0.17%) 1.08% 1.13% 79%
SMALL COMPANY VALUE PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
June 1, 1999 to September 30,
1999............................. 0.83% 1.00% 1.04% 28%
June 1, 1998 to May 31, 1999....... 0.76% 0.99% 1.04% 97%
June 1, 1997 (b) to May 31, 1998... 0.69% 0.99% 1.04% 99%
SMALL COMPANY GROWTH PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
June 1, 1999 to September 30,
1999............................. (0.22%) 0.94% 0.98% 55%
June 1, 1998 to May 31, 1999....... (0.25%) 0.98% 0.98% 154%
June 1, 1997 (b) to May 31, 1998... (0.41%) 0.93% 0.98% 123%
INTERNATIONAL PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
June 1, 1999 to September 30,
1999............................. 1.79% 0.61% 0.68% 23%
June 1, 1998 to May 31, 1999....... 1.29% 0.61% 0.69% 94%
June 1, 1997 to May 31, 1998....... 1.23% 0.66% 0.68% 37%
June 1, 1996 to May 31, 1997....... 1.53% 0.19% 0.67% 53%
November 1, 1995 to May 31, 1996... 1.75% 0.23% 0.68% 18%
November 11, 1994 (b) to October
31, 1995......................... 1.94% 0.25% 0.70% 28%
INTERNATIONAL EQUITY PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
June 1, 1999 to September 30,
1999............................. 0.21% 1.40% 1.40% 11%
February 12, 1999 (b) to May 31,
1999............................. 1.92% 1.40% 1.45% 12%
</TABLE>
- ----------------------------------
(a) Ratios for periods of less than one year are annualized.
(b) Commencement of operations.
(c) 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 (Note 4).
See Notes to Financial Statements.
CORE TRUST (DELAWARE)
74
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Core Trust (Delaware) ("Core Trust") is organized as a Delaware business trust
and is registered as an open-end management investment company under the
Investment Company Act of 1940 (the "Act"). Core Trust currently has twenty-one
separate investment portfolios. These financial statements relate to ten
diversified portfolios (individually, a "Portfolio" and, collectively, the
"Portfolios"), which commenced operations on the following dates:
<TABLE>
<S> <C>
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 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
International Equity Portfolio.......... February 12, 1999
</TABLE>
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. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net assets from
operations during the fiscal period. Actual results could differ from those
estimates. The following summarizes the significant accounting policies of the
Portfolios:
SECURITIES VALUATION--Each Portfolio determines its net asset value at 4:00 PM,
Eastern Time, on each Portfolio business day. 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 last bid price provided
by independent pricing services. 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 is recorded on the accrual basis
and includes amortization of premiums and accretion of discounts. 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.
Foreign currency amounts are translated into U.S. dollars at the mean of the bid
and ask price 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 and International Equity 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.
FUTURES CONTRACTS--Each Portfolio may invest in 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
CORE TRUST (DELAWARE)
75
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
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.
ORGANIZATION COSTS--The costs incurred by certain Portfolios 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 Portfolios' operations.
REPURCHASE AGREEMENTS--Each Portfolio may invest in repurchase agreements. The
Portfolios, through their custodian, receive delivery of the underlying
collateral, whose market value must always exceed the repurchase price. In the
event of default, a Portfolio may have difficulties with the disposition of the
collateral.
SECURITY LOANS--The Portfolios may receive fees or retain a portion of interest
on the investment securities or cash received as collateral for lending
securities. A Portfolio also continues to receive interest or dividends on the
securities loaned. Security loans are secured by collateral whose market value
must always exceed 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.
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER--The investment adviser of each Portfolio, except
International Portfolio and International Equity Portfolio, is Norwest
Investment Management, Inc. ("Adviser"), a wholly owned subsidiary of Norwest
Bank Minnesota, N.A. ("Norwest"). Norwest is a subsidiary of Wells Fargo &
Company. The investment adviser of International Portfolio is Schroder
Investment Management North America, Inc. ("Schroder"). Schroder is a wholly
owned U.S. subsidiary of Schroder Inc., which is a wholly owned U.S. subsidiary
of Schroder plc. The investment adviser of International Equity Portfolio is
Wells Fargo Bank ("WFB"). WFB is a wholly owned subsidiary of Wells Fargo &
Company. The Adviser and WFB have retained the services of certain of their
affiliates as investment subadvisers (Peregrine Capital Management, Inc., Smith
Asset Management Group, L.P. and Wells Capital Management Inc. ("WCM")) on
selected Portfolios. The fees related to subadviser services are borne directly
by the Adviser and WFB and do not increase the overall fees paid by the
Portfolios to the Adviser and WFB. The investment advisory fee and the
associated subadviser is as follows:
<TABLE>
<CAPTION>
INVESTMENT
ADVISORY FEE SUBADVISER
------------ ----------
<S> <C> <C>
Index Portfolio......................... 0.15% -
Income Equity Portfolio................. 0.50% -
Disciplined Growth Portfolio............ 0.90% Smith Asset Management Group, L.P.
Large Company Growth Portfolio.......... 0.65% Peregrine Capital Management, Inc.
Small Cap Index Portfolio............... 0.25% -
Small Cap Value Portfolio............... 0.95% Smith Asset Management Group, L.P.
Small Company Value Portfolio........... 0.90% Peregrine Capital Management, Inc.
Small Company Growth Portfolio.......... 0.90% Peregrine Capital Management, Inc.
International Portfolio................. 0.45% -
International Equity Portfolio.......... 1.20% Wells Capital Management Inc.
</TABLE>
ADMINISTRATION AND OTHER SERVICE PROVIDERS--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 each 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 serves as the custodian for each Portfolio and may appoint subcustodians
for foreign securities and other assets held in foreign countries. For its
custody services, Norwest receives a fee with respect to each Portfolio (other
than International Portfolio and International Equity Portfolio) at an annual
rate of 0.02% of the first $100 million of each Portfolio's average daily net
assets, 0.015% of the average daily net assets of each Portfolio with respect to
the next $100 million and 0.01% of the average daily net assets of each
Portfolio in excess of $200 million. With respect to each of International
Portfolio and International Equity Portfolio, Norwest receives a fee at an
annual rate of 0.07% of each Portfolio's average daily net assets. Norwest also
receives transaction fees for providing services in connection with the
securities lending program.
Forum Accounting Services, LLC, an affiliate of FAdS, provides portfolio
accounting and interestholder recordkeeping services to each Portfolio.
CORE TRUST (DELAWARE)
76
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 4. WAIVERS AND REIMBURSEMENT OF EXPENSES
For the four months ended September 30, 1999, fees waived and expenses
reimbursed by the Portfolios' service providers were as follows:
<TABLE>
<CAPTION>
TOTAL FEES
EXPENSES WAIVED AND
FEES WAIVED REIMBURSED BY EXPENSES
BY FADS FADS REIMBURSED
------------- ------------- -------------
<S> <C> <C> <C>
Index Portfolio......................... $283,098 $ 3,474 $286,572
Income Equity Portfolio................. 257,478 - 257,478
Disciplined Growth Portfolio............ 34,593 1,779 36,372
Large Company Growth Portfolio.......... 213,833 - 213,833
Small Cap Index Portfolio............... 22,994 2,687 25,681
Small Cap Value Portfolio............... 21,449 - 21,449
Small Company Value Portfolio........... 25,997 - 25,997
Small Company Growth Portfolio.......... 97,671 - 97,671
</TABLE>
Schroder waived investment advisory fees of $191,876 for International
Portfolio.
For the year ended May 31, 1999, fees waived by the Portfolios' service
providers were as follows:
<TABLE>
<CAPTION>
FEES WAIVED
BY FADS
-------
<S> <C>
Index Portfolio......................... $779,240
Income Equity Portfolio................. 425,107
Disciplined Growth Portfolio............ 79,837
Large Company Growth Portfolio.......... 137,320
Small Cap Index Portfolio............... 54,976
Small Cap Value Portfolio............... 50,969
Small Company Value Portfolio........... 68,547
Small Company Growth Portfolio.......... 1,559
International Equity Portfolio.......... 22,637
</TABLE>
Schroder waived investment advisory fees of $717,860 for International
Portfolio.
NOTE 5. SECURITIES TRANSACTIONS
The following table presents the federal tax cost basis of investments and
related gross unrealized appreciation and depreciation for federal income tax
purposes as of September 30, 1999:
<TABLE>
<CAPTION>
UNREALIZED
---------------------------------------------- TAX
APPRECIATION (DEPRECIATION) NET COST BASIS
------------ -------------- --- ----------
<S> <C> <C> <C> <C>
Index Portfolio................................... $ 600,370,707 $(76,717,373) $523,653,334 $1,061,548,635
Income Equity Portfolio........................... 988,802,993 (85,138,913) 903,664,080 1,547,677,175
Disciplined Growth Portfolio...................... 40,911,179 (9,770,333) 31,140,846 168,022,253
Large Company Growth Portfolio.................... 828,767,096 (86,500,933) 742,266,163 1,296,470,700
Small Cap Index Portfolio......................... 17,494,356 (32,617,336) (15,122,980) 168,281,300
Small Cap Value Portfolio......................... 26,398,242 (6,255,327) 20,142,915 152,621,667
Small Company Value Portfolio..................... 14,341,396 (18,757,028) (4,415,632) 155,608,649
Small Company Growth Portfolio.................... 99,617,624 (41,018,268) 58,599,356 618,452,240
International Portfolio........................... 137,931,767 (43,261,460) 94,670,307 709,658,814
International Equity Portfolio.................... 23,999,782 (7,786,447) 16,213,335 132,358,959
</TABLE>
CORE TRUST (DELAWARE)
77
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 5. SECURITIES TRANSACTIONS (CONTINUED)
The following table presents the cost of purchases and proceeds from sales
(including maturities) of securities (excluding short-term investments) during
the four months ending September 30, 1999, and the year ended May 31, 1999:
<TABLE>
<CAPTION>
FOUR MONTH PERIOD FOR THE YEAR
ENDED SEPTEMBER 30, 1999 ENDED MAY 31, 1999
-------------------------- ------------------------------
COST OF PROCEEDS COST OF PROCEEDS
PURCHASES FROM SALES PURCHASES FROM SALES
--------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Index Portfolio................................... $190,282,208 $179,041,589 $ 208,621,074 $ 55,255,404
Income Equity Portfolio........................... 240,634,655 115,168,391 204,190,270 66,188,047
Disciplined Growth Portfolio...................... 54,291,755 42,341,878 160,928,780 144,621,644
Large Company Growth Portfolio.................... 329,506,988 106,496,071 635,306,952 381,966,535
Small Cap Index Portfolio......................... 38,696,209 30,422,548 57,133.442 30,458,668
Small Cap Value Portfolio......................... 95,228,700 63,812,132 157,962,228 110,659,107
Small Company Value Portfolio..................... 43,558,242 55,017,035 171,376,287 135,736,066
Small Company Growth Portfolio.................... 372,461,790 425,373,548 1,071,763,968 1,150,267,944
International Portfolio........................... 194,782,327 168,966,315 653,087,812 801,606,226
International Equity Portfolio.................... 17,429,953 34,198,928 160,714,572 18,657,476
</TABLE>
NOTE 6. PORTFOLIO SECURITIES LOANED
As of September 30, 1999, certain Portfolios had loaned portfolio investments in
return for securities and cash collateral, which were invested in various
short-term fixed income securities. The risks to a Portfolio from securities
lending are that the borower may not provide additional collateral when required
or return the securities when due or when called for by the Portfolio. The value
of the securities on loan and the value of the related collateral were as
follows:
<TABLE>
<CAPTION>
SECURITIES COLLATERAL
---------- ----------
<S> <C> <C>
Index Portfolio......................... $253,513,030 $259,210,830
Income Equity Portfolio................. 165,158,245 167,861,154
Disciplined Growth Portfolio............ 50,103,699 50,735,213
Large Company Growth Portfolio.......... 160,775,746 166,752,238
Small Cap Index Portfolio............... 6,107,611 6,351,627
Small Cap Value Portfolio............... 13,006,588 13,417,813
Small Company Value Portfolio........... 5,509,043 5,862,363
International Portfolio................. 65,178,617 68,281,600
International Equity Portfolio.......... 7,966,584 8,171,670
</TABLE>
NOTE 7. CONCENTRATION OF CREDIT RISK
International Portfolio and International Equity Portfolio invest 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 Portfolios' investments.
NOTE 8. 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 assets 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
were $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. This transaction, 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.
CORE TRUST (DELAWARE)
78
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
NOTE 8. CONTRIBUTION OF SECURITIES (CONTINUED)
In connection with the above transaction and the contemporaneous commencement of
operations of certain other 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>
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 Value Portfolio........... 165,287,781 13,216,619
Small Company Growth Portfolio.......... 756,220,600 150,549,039
International Portfolio................. 232,334,610 33,714,226
</TABLE>
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
- --------- ------------- -------------
<S> <C> <C>
Income Equity Portfolio................. $477,132,067 $190,138,062
Small Company Growth Portfolio.......... 140,475,014 40,180,322
</TABLE>
NOTE 9. PORTFOLIO REORGANIZATIONS
On April 22, 1999, the Board of Trustees of Core Trust approved the
reorganization of certain Portfolios managed by the Adviser, Schroder and WFB
(the "Norwest Portfolios") into separate portfolios of Wells Fargo Core Trust,
another open-end registered management investment company. Each Wells Fargo Core
Trust portfolio will have substantially similar investment objectives and
policies as its corresponding Norwest Portfolio. The reorganization is part of a
plan to centralize the management of the Norwest Portfolios and Norwest
Advantage Funds, the principal interestholder, under a common Board of Trustees.
Pursuant to Core Trust's Trust Instrument, the reorganization does not require
interestholder approval.
CORE TRUST (DELAWARE)
79
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO
- ---------------------------------------------------------------------------------
COMMON STOCK (97.8%)
AGRICULTURAL PRODUCTION-CROPS (0.1%)
47,800 Nabisco Group Holdings Corp. $ 717,000
35,100 Pioneer Hi-Bred International, Inc. 1,397,419
--------------
2,114,419
--------------
AMUSEMENT & RECREATION SERVICES (0.5%)
18,800 Harrah's Entertainment, Inc.* 521,700
302,100 Walt Disney Co.*# 7,816,838
--------------
8,338,538
--------------
APPAREL & ACCESSORY STORES (0.5%)
125,600 Gap, Inc. 4,019,200
20,500 Nordstrom, Inc. 553,500
31,400 Limited, Inc. 1,201,050
46,500 TJX Cos., Inc. 1,304,906
--------------
7,078,656
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS (0.1%)
9,000 Liz Claiborne, Inc.# 279,000
17,400 V.F. Corp. 539,400
--------------
818,400
--------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (0.0%)
7,700 Pep Boys - Manny, Moe & Jack 114,538
21,800 Autozone, Inc.* 611,762
--------------
726,300
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING (0.0%)
10,200 Ryder System, Inc. 207,825
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS (0.0%)
8,700 Centex Corp. 257,194
7,000 Kaufman & Broad Home Corp. 144,375
6,300 Pulte Corp. 137,025
--------------
538,594
--------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS (1.1%)
217,200 Home Depot, Inc. 14,905,350
55,900 Lowe's Cos., Inc. 2,725,125
--------------
17,630,475
--------------
BUSINESS SERVICES (8.9%)
52,400 3Com Corp.* 1,506,500
8,900 Adobe Systems, Inc. 1,010,150
162,300 America Online, Inc.*# 16,879,200
8,600 Autodesk, Inc. 188,125
90,600 Automatic Data Processing, Inc. 4,043,025
35,000 BMC Software, Inc.*# 2,504,687
25,500 Cabletron Systems, Inc.* 400,031
105,500 Cendant Corp.* 1,872,625
21,200 Ceridian Corp.* 527,350
78,700 Computer Associates International, Inc. 4,820,375
23,400 Computer Sciences Corp.* 1,645,312
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
BUSINESS SERVICES (continued)
52,300 Compuware Corp.*# $ 1,363,069
72,200 Electronic Data Systems Corp. 3,822,088
21,100 Equifax, Inc. 593,437
62,800 First Data Corp. 2,755,350
45,800 IMS Health, Inc. 1,044,813
41,300 Interpublic Group of Cos., Inc. 1,698,462
41,200 McKesson HBOC, Inc.# 1,194,800
747,500 Microsoft Corp.* 67,695,469
49,100 Novell, Inc.* 1,015,756
26,000 Omnicom Group, Inc.# 2,058,875
210,800 Oracle Corp.*# 9,591,400
39,400 Parametric Technology Co.* 531,900
35,600 PeopleSoft, Inc.* 602,975
3,900 Shared Medical Systems Corp. 182,325
113,300 Sun Microsystems, Inc.* 10,536,900
25,500 UST, Inc. 769,781
--------------
140,854,780
--------------
CHEMICALS & ALLIED PRODUCTS (11.1%)
222,800 Abbott Laboratories# 8,187,900
33,600 Air Products and Chemicals, Inc. 976,500
8,200 Alberto Culver Co. 189,625
9,700 Allergan, Inc. 1,067,000
14,900 ALZA Corp.* 637,906
38,200 Avon Products, Inc. 947,837
42,600 Baxter International, Inc.# 2,566,650
290,900 Bristol-Myers Squibb Co. 19,635,750
34,600 Clorox Co. 1,323,450
85,400 Colgate-Palmolive Co.# 3,907,050
32,200 Dow Chemical Co.# 3,658,725
155,200 E.I. du Pont de Nemours & Co. 9,447,800
11,500 Eastman Chemical Co. 460,000
19,000 Ecolab, Inc. 648,375
160,100 Eli Lilly & Co. 10,246,400
4,700 FMC Corp.* 226,775
16,100 Goodrich (B.F.) Co. 466,900
8,600 Great Lakes Chemical Corp. 327,337
15,500 Hercules, Inc. 443,687
15,500 International Flavors & Fragrances, Inc. 534,750
196,900 Johnson & Johnson 18,090,188
10,400 Mallinckrodt, Inc. 313,950
343,500 Merck & Co., Inc. 22,263,094
92,800 Monsanto Co. 3,311,800
567,500 Pfizer, Inc. 20,394,531
74,200 Pharmacia & Upjohn, Inc.# 3,682,175
25,400 PPG Industries, Inc. 1,524,000
23,300 Praxair, Inc. 1,071,800
194,600 Procter & Gamble Co. 18,243,750
31,900 Rohm & Haas Co. 1,152,388
215,100 Schering-Plough Corp. 9,383,737
24,800 Sherwin-Williams Co. 519,250
14,800 Sigma Aldrich 469,900
19,500 Union Carbide Corp. 1,107,844
10,400 W.R. Grace & Co.* 167,050
125,200 Warner-Lambert Co. 8,310,150
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
80
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
CHEMICALS & ALLIED PRODUCTS (continued)
14,000 Watson Pharmaceuticals, Inc.* $ 427,875
--------------
176,333,899
--------------
COMMUNICATIONS (9.5%)
44,700 Alltel Corp. 3,145,762
161,000 Ameritech Corp. 10,817,187
468,000 AT&T Corp.# 20,358,000
227,400 Bell Atlantic Corp.# 15,306,862
276,100 BellSouth Corp.# 12,424,500
103,200 CBS Corp.*# 4,773,000
20,400 CenturyTel, Inc. 828,750
49,400 Clear Channel Communications, Inc.*# 3,945,825
109,800 Comcast Corp.-Class A*# 4,378,275
112,070 Global Crossing Ltd.* 2,969,855
143,700 GTE Corp. 11,046,938
10,400 King World Productions, Inc.* 390,000
274,300 MCI Worldcom, Inc.*# 19,715,313
88,800 MediaOne Group, Inc.*# 6,066,150
48,600 Nextel Communications, Inc.* 3,295,687
288,100 SBC Communications, Inc.# 14,711,106
127,100 Sprint Corp. (FON Group) 6,895,175
64,400 Sprint Corp. (PCS Group)*# 4,801,825
73,900 US West, Inc. 4,216,919
--------------
150,087,129
--------------
DEPOSITORY INSTITUTIONS (6.1%)
25,800 AmSouth Bancorp# 604,687
253,000 Bank of America Corp.# 14,088,938
107,700 Bank of New York Co., Inc.# 3,601,219
171,800 Bank One Corp. 5,980,788
43,500 BankBoston Corp. 1,886,812
46,800 BB&T Corp.# 1,515,150
121,900 Chase Manhattan Corp. 9,188,212
22,900 Comerica, Inc. 1,159,312
39,700 Fifth Third Bancorp 2,415,499
140,100 First Union Corp. 4,982,306
192,710 Firstar Corp.# 4,938,194
83,400 Fleet Boston Corp. 3,054,525
8,100 Golden West Financial Corp. 795,825
33,700 Huntington Bancshares, Inc. 895,156
25,700 J.P. Morgan & Co., Inc. 2,936,225
65,700 KeyCorp 1,695,881
75,300 Mellon Bank Corp. 2,541,375
90,500 National City Corp. 2,415,219
16,300 Northern Trust Corp. 1,361,050
44,500 PNC Bank Corp. 2,344,594
32,800 Regions Financial Corp. 984,000
15,300 Republic New York Corp. 939,994
24,500 SouthTrust Corp. 878,937
23,600 State Street Corp. 1,525,150
25,900 Summit Bancorp 840,131
47,100 Suntrust Banks, Inc. 3,096,825
39,700 Synovus Financial Corp. 741,894
107,200 U.S. Bancorp 3,236,100
20,900 Union Planters Corp. 851,675
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
DEPOSITORY INSTITUTIONS (continued)
29,600 Wachovia Corp.# $ 2,327,300
84,800 Washington Mutual, Inc.# 2,480,400
241,600 Wells Fargo Co.# 9,573,400
--------------
95,876,773
--------------
EATING & DRINKING PLACES (0.7%)
19,400 Darden Restaurants, Inc. 379,512
198,400 McDonald's Corp. 8,531,200
22,500 Tricon Global Restaurants, Inc.* 921,094
17,800 Wendy's International, Inc.# 469,475
--------------
10,301,281
--------------
ELECTRIC, GAS & SANITARY SERVICES (2.8%)
28,100 AES Corp.*# 1,657,900
27,600 Allied Waste Industries, Inc.* 322,575
20,100 Ameren Corp. 760,031
28,300 American Electric Power Co. 965,737
23,400 Carolina Power & Light Co.# 827,775
31,100 Central & Southwest Corp.# 656,987
23,300 CINergy Corp. 659,681
17,300 CMS Energy Corp. 587,119
31,300 Coastal Corp. 1,281,344
12,000 Columbia Energy Group 664,500
32,400 Consolidated Edison Co. 1,344,600
14,000 Consolidated Natural Gas Co. 873,250
21,900 Constellation Energy Group 615,937
28,100 Dominion Resources, Inc.# 1,268,012
21,200 DTE Energy Co. 765,850
53,400 Duke Energy Corp.# 2,943,675
3,900 Eastern Enterprises 181,106
50,900 Edison International# 1,237,506
104,500 Enron Corp. 4,310,625
36,200 Entergy Corp.# 1,047,537
34,300 FirstEnergy Corp. 874,650
14,400 Florida Progress Corp. 666,000
26,300 FPL Group, Inc. 1,324,863
18,400 GPU, Inc. 600,300
48,400 Laidlaw, Inc. 326,700
16,900 New Century Energies, Inc. 565,094
27,400 Niagara Mohawk Holdings, Inc.* 422,988
6,900 Nicor, Inc. 256,594
22,600 Northern States Power Co. 487,313
4,600 Oneok, Inc. 139,438
56,200 Pacific Gas & Electric Co. 1,454,175
43,500 PacifiCorp 875,438
27,300 PECO Energy Co. 1,023,750
5,200 People's Energy Corp. 182,975
23,100 PP&L Resources, Inc. 625,144
32,100 Public Service Enterprise Group, Inc. 1,239,863
43,300 Reliant Energy, Inc. 1,171,806
35,200 Sempra Energy 732,600
16,100 Sonat, Inc. 638,969
100,100 Southern Co.# 2,577,575
40,500 Texas Utilities Co. 1,511,156
90,700 Waste Management, Inc. 1,745,975
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
81
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
ELECTRIC, GAS & SANITARY SERVICES (continued)
63,600 Williams Cos., Inc. $ 2,381,025
--------------
44,796,138
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(10.9%)
15,100 Adaptec, Inc.* 599,281
19,800 ADC Telecommunications, Inc.* # 830,362
21,600 Advanced Micro Devices, Inc.* 371,250
12,000 Andrew Corp.* 208,500
13,800 Cooper Industries, Inc. 645,150
63,600 Emerson Electric Co. 4,018,725
480,400 General Electric Co. 56,957,425
25,400 General Instrument Corp.* 1,222,375
11,700 Harris Corp. 323,213
484,500 Intel Corp. 36,004,406
21,600 LSI Logic Corp.* 1,112,400
448,800 Lucent Technologies, Inc. 29,115,900
12,800 Maytag Corp. 426,400
36,700 Micron Technology, Inc.*# 2,442,844
88,900 Motorola, Inc.# 7,823,200
24,600 National Semiconductor Corp.* 750,300
5,900 National Service Industries 185,850
10,800 Network Appliance, Inc.* 773,550
194,400 Nortel Networks Corp.# 9,914,400
23,500 QUALCOMM, Inc.*# 4,445,906
11,200 Scientific-Atlanta, Inc. 555,100
57,300 Tellabs, Inc.*# 3,262,519
115,100 Texas Instruments, Inc.# 9,466,975
8,300 Thomas & Betts Corp.# 423,300
11,000 Whirlpool Corp.# 718,437
--------------
172,597,768
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (0.1%)
23,600 Dun & Bradstreet Corp. 705,050
6,700 EG&G, Inc. 266,744
36,000 Paychex, Inc. 1,228,500
--------------
2,200,294
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT (0.6%)
4,500 Ball Corp. 198,281
9,900 Crane Co. 222,131
17,900 Crown Cork & Seal Co., Inc. 434,075
20,800 Danaher Corp. 1,095,900
24,400 Fortune Brands, Inc. 786,900
158,900 Gillette Co. 5,392,669
15,900 Parker-Hannifin Corp. 712,519
9,600 Snap-On, Inc. 312,000
13,000 Stanley Works 327,438
--------------
9,481,913
--------------
FOOD & KINDRED PRODUCTS (3.8%)
5,400 Adolph Coors Co. 292,275
68,500 Anheuser-Busch Cos., Inc.# 4,799,281
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
FOOD & KINDRED PRODUCTS (continued)
90,400 Archer Daniels Midland Co. $ 1,101,750
40,900 Bestfoods, Inc. 1,983,650
10,000 Brown-Forman Corp. 623,750
63,600 Campbell Soup Co. 2,488,350
361,600 Coca-Cola Co. 17,379,400
62,200 Coca-Cola Enterprises, Inc.# 1,403,387
71,500 ConAgra, Inc. 1,613,219
22,400 General Mills, Inc. 1,817,200
52,500 Heinz (H.J.) Co. 2,257,500
20,400 Hershey Foods Corp.# 993,225
59,300 Kellogg Co. 2,220,044
214,200 PepsiCo, Inc. 6,479,550
19,600 Quaker Oats Co.# 1,212,750
47,400 Ralston-Ralston Purina Group 1,318,313
132,300 Sara Lee Corp. 3,100,781
63,300 Seagram Co. Ltd.# 2,880,150
83,700 Unilever N.V. NY Shares 5,702,062
17,000 Wrigley (Wm) Jr. Co. 1,169,813
--------------
60,836,450
--------------
FOOD STORES (0.6%)
61,600 Albertson's, Inc.# 2,437,050
5,600 Great Atlantic & Pacific Tea Co. 169,750
121,500 Kroger Co.*# 2,680,594
74,700 Safeway, Inc.* 2,843,269
21,800 Winn-Dixie Stores, Inc. 647,187
--------------
8,777,850
--------------
FURNITURE & FIXTURES (0.1%)
64,900 Masco Corp. 2,011,900
--------------
GENERAL MERCHANDISE STORES (3.0%)
16,100 Consolidated Stores Corp.* 355,206
32,300 Costco Wholesale Corp.*# 2,325,600
64,800 Dayton Hudson Corp. 3,892,050
15,700 Dillards, Inc. 318,906
32,900 Dollar General Corp. 1,015,787
30,500 Federated Department Stores, Inc.*# 1,332,469
10,400 Harcourt General, Inc. 432,900
38,600 J.C. Penney Co., Inc. 1,326,875
72,300 KMart Corp.* 845,006
23,800 Kohl's Corp.* 1,573,775
48,900 May Department Stores Co. 1,781,794
55,700 Sears, Roebuck & Co. 1,747,588
651,800 Wal-Mart Stores, Inc. 31,001,238
--------------
47,949,194
--------------
HEALTH SERVICES (0.2%)
82,600 Columbia HCA Healthcare Corp. 1,750,087
60,800 HEALTHSOUTH Corp.* 368,600
15,700 Manor Care, Inc.* 269,844
45,500 Tenet Healthcare Corp.* 799,094
--------------
3,187,625
--------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
82
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION-CONTRACTORS (0.2%)
11,100 Fluor Corp. $ 446,775
6,000 Foster Wheeler Corp. 72,375
64,600 Halliburton Co. 2,648,600
--------------
3,167,750
--------------
HOLDING & OTHER INVESTMENT OFFICES (0.1%)
47,900 Conseco, Inc.# 925,069
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.2%)
29,800 Best Buy Co., Inc.* 1,849,462
29,400 Circuit City Stores 1,240,313
--------------
3,089,775
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (0.1%)
37,300 Hilton Hotels Corp. 368,337
36,400 Marriott International - Class A 1,189,825
29,100 Mirage Resorts, Inc.* 409,219
--------------
1,967,381
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (9.7%)
23,600 Apple Computer, Inc.*# 1,494,175
55,000 Applied Materials, Inc.* 4,283,125
48,200 Baker Hughes, Inc. 1,397,800
12,700 Black & Decker Corp. 580,231
3,400 Briggs & Stratton Corp. 198,475
13,500 Brunswick Corp. 335,813
11,400 Case Corp. 567,862
52,100 Caterpillar, Inc. 2,855,731
5,400 Cincinnati Milacron, Inc. 95,850
476,200 Cisco Systems, Inc.* 32,649,462
249,000 Compaq Computer Corp.# 5,711,437
6,100 Cummins Engine Co., Inc. 303,856
7,400 Data General Corp.* 155,862
34,200 Deere & Co. 1,323,113
372,100 Dell Computer Corp.* 15,558,431
30,500 Dover Corp. 1,246,688
148,400 EMC Corp.*# 10,601,325
45,900 Gateway 2000, Inc.*# 2,039,681
148,400 Hewlett-Packard Co. 13,652,800
265,000 IBM Corp. 32,164,375
24,200 Ingersoll-Rand Co. 1,329,488
18,900 Lexmark International Group, Inc.* 1,521,450
8,700 McDermott International, Inc. 176,175
18,200 Pall Corp. 422,013
39,200 Pitney Bowes, Inc. 2,388,750
32,600 Seagate Technology, Inc.* 1,004,488
27,600 Silicon Graphics, Inc.* 301,875
39,500 Solectron Corp.* 2,836,594
28,300 Tandy Corp. 1,462,756
25,000 Tenneco, Inc. 425,000
9,100 Timken Co. 146,737
122,500 Tyco International Ltd. 12,648,125
44,800 Unisys Corp.* 2,021,600
--------------
153,901,143
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
INSURANCE AGENTS, BROKERS & SERVICE (0.3%)
37,500 Aon Corp. $ 1,108,594
24,500 Humana, Inc.* 168,437
38,700 Marsh & McLennan Cos., Inc. 2,650,950
--------------
3,927,981
--------------
INSURANCE CARRIERS (4.2%)
20,600 Aetna Life & Casualty Inc. 1,014,550
38,900 AFLAC, Inc. 1,628,937
116,900 Allstate Corp. 2,915,194
36,500 American General Corp. 2,306,344
226,800 American International Group, Inc. 19,717,426
25,800 Chubb Corp. 1,285,162
29,200 CIGNA Corp.# 2,270,300
24,200 Cincinnati Financial Corp. 908,257
494,600 Citigroup, Inc. 21,762,400
33,100 Hartford Financial Services Group 1,352,962
15,400 Jefferson-Pilot Corp. 973,087
29,100 Lincoln National Corp. 1,093,069
15,800 Loews Corp. 1,108,963
14,600 MBIA, Inc. 680,725
16,000 MGIC Investment Corp. 764,000
10,700 Progressive Corp. 874,056
20,800 Providian Financial Corp. 1,647,100
19,300 Safeco Corp.# 540,400
33,200 St. Paul Cos., Inc.# 913,000
19,500 Torchmark Corp. 504,563
25,400 United Healthcare Corp. 1,236,663
35,000 UnumProvident Corp 1,030,313
9,600 Wellpoint Health Networks, Inc.* 547,200
--------------
67,074,671
--------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.0%)
15,700 Louisiana-Pacific Corp. 245,313
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS (1.8%)
7,500 Bard (C.R.), Inc. 352,969
8,400 Bausch & Lomb, Inc. 553,875
36,700 Becton, Dickinson and Co. 1,029,894
16,500 Biomet, Inc. 434,156
60,600 Boston Scientific Corp.* 1,496,062
46,400 Eastman Kodak Co. 3,500,300
44,300 Guidant Corp.* 2,375,587
18,700 Honeywell, Inc. 2,081,544
12,500 Johnson Controls, Inc. 828,906
12,900 KLA-Tencor Corp.* 838,500
171,800 Medtronic, Inc. 6,098,900
6,600 Millipore Corp. 247,913
14,900 PE Corp - PE Biosystems Group 1,076,525
6,500 Polaroid Corp. 169,000
49,500 Raytheon Co., - Class B 2,456,438
12,400 St. Jude Medical, Inc.* 390,600
6,900 Tektronix, Inc. 231,150
23,100 Thermo Electron Corp.* 310,406
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
83
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS (continued)
97,100 Xerox Corp.# $ 4,072,131
--------------
28,544,856
--------------
METAL MINING (0.2%)
57,100 Barrick Gold Corp. 1,241,925
13,200 Cyprus Amax Minerals Co. 259,050
23,900 Freeport McMoran Inc., Class B* 371,944
38,100 Homestake Mining Co. 350,044
24,500 Newmont Mining Corp.# 633,937
47,700 Placer Dome, Inc. 709,538
--------------
3,566,438
--------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS (0.0%)
14,700 Vulcan Materials Co. 538,388
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.2%)
28,500 Hasbro, Inc. 610,969
12,900 ITT Industries, Inc. 410,381
5,000 Jostens, Inc. 95,625
61,500 Mattel, Inc.# 1,168,500
1,200 NACCO Industries, Inc. 83,850
--------------
2,369,325
--------------
MISCELLANEOUS RETAIL (0.6%)
20,450 Bed Bath & Beyond, Inc.* 714,472
57,400 CVS Corp. 2,342,638
5,800 Longs Drug Stores, Inc. 173,275
54,900 Office Depot, Inc.* 559,294
37,900 Rite Aid Corp.# 523,494
68,100 Staples, Inc.* 1,485,431
36,300 Toys 'R' Us, Inc.* 544,500
147,000 Walgreen Co.# 3,730,125
--------------
10,073,229
--------------
MOTION PICTURES (0.1%)
31,800 Unicom Corp.# 1,174,613
--------------
NONDEPOSITORY CREDIT INSTITUTIONS (2.2%)
65,800 American Express Co. 8,858,325
106,600 Associates First Capital Corp. 3,837,600
28,900 Capital One Financial Corp.# 1,127,100
16,500 Countrywide Credit Industries, Inc. 532,125
150,100 Fannie Mae 9,409,394
101,800 Freddie Mac 5,293,600
70,100 Household International, Inc. 2,812,762
117,400 MBNA Corp.# 2,678,188
23,600 SLM Holding Corp. 1,014,800
--------------
35,563,894
--------------
OIL & GAS EXTRACTION (0.6%)
18,700 Anadarko Petroleum Corp. 571,519
16,700 Apache Corp. 721,231
26,000 Burlington Resources, Inc.# 955,500
7,200 Helmerich & Payne, Inc. 182,250
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
OIL & GAS EXTRACTION (continued)
51,100 Occidental Petroleum Corp. $ 1,181,687
12,200 Rowan Cos., Inc.* 198,250
80,200 Schlumberger, Ltd. 4,997,463
36,900 Union Pacific Resources Group, Inc. 592,706
--------------
9,400,606
--------------
PAPER & ALLIED PRODUCTS (1.3%)
16,600 Avery Dennison Corp. 875,650
7,700 Bemis Co., Inc. 260,837
8,400 Boise Cascade Corp. 306,075
14,100 Champion International Corp. 724,387
32,400 Fort James Corp. 864,675
25,100 Georgia-Pacific Group# 1,016,550
21,800 IKON Office Solutions, Inc. 232,987
60,600 International Paper Co. 2,912,587
78,000 Kimberly-Clark Corp. 4,095,000
15,000 Mead Corp. 515,625
59,000 Minnesota Mining and Manufacturing Co. 5,667,688
8,200 Temple-Inland, Inc. 496,100
14,700 Westvaco Corp. 376,688
29,500 Weyerhaeuser Co.# 1,699,938
16,300 Willamette Industries, Inc. 702,938
--------------
20,747,725
--------------
PERSONAL SERVICES (0.1%)
14,300 H&R Block, Inc. 621,156
39,800 Service Corp. International 420,388
--------------
1,041,544
--------------
PETROLEUM REFINING & RELATED INDUSTRIES (5.3%)
13,300 Amerada Hess Corp.# 814,625
10,600 Ashland, Inc. 356,425
47,200 Atlantic Richfield Co. 4,183,100
96,100 Chevron Corp. 8,528,875
91,900 Conoco, Inc. - Class B 2,515,762
355,600 Exxon Corp. 27,003,375
12,700 Kerr-McGee Corp.# 699,294
114,700 Mobil Corp. 11,556,025
37,100 Phillips Petroleum Co. 1,808,625
314,100 Royal Dutch Petroleum Co. - NY Registered
Shares 18,551,531
13,300 Sunoco, Inc. 364,088
81,000 Texaco, Inc. 5,113,125
35,500 Unocal Corp. 1,315,719
45,200 USX-Marathon Group, Inc. 1,322,100
--------------
84,132,669
--------------
PHARMACEUTICAL PREPARATIONS (0.9%)
191,400 American Home Products Corp. 7,943,100
74,700 Amgen, Inc.* 6,088,050
--------------
14,031,150
--------------
PRIMARY METAL INDUSTRIES (0.5%)
33,100 Alcan Aluminum Ltd.# 1,034,375
53,700 Alcoa, Inc.# 3,332,756
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
84
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
PRIMARY METAL INDUSTRIES (continued)
27,900 Allegheny Teledyne, Inc. $ 470,812
5,800 ASARCO, Inc. 155,513
19,200 Bethlehem Steel Corp.* 141,600
18,400 Engelhard Corp. 334,650
28,100 Inco, Ltd.* 600,638
12,800 Nucor Corp. 609,600
8,500 Phelps Dodge Corp. 468,031
9,200 Reynolds Metals Co. 555,450
12,900 USX-U.S. Steel Group, Inc. 332,175
13,500 Worthington Industries, Inc. 229,500
--------------
8,265,100
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.7%)
9,900 American Greetings Corp. 254,925
11,100 Deluxe Corp. 377,400
13,300 Dow Jones & Co., Inc. 709,887
41,000 Gannett Co., Inc. 2,836,688
11,900 Knight-Ridder, Inc.# 653,012
28,800 McGraw-Hill Cos., Inc. 1,393,200
7,600 Meredith Corp. 275,975
25,500 New York Times Co. 956,250
18,700 R.R. Donnelley & Sons Co. 539,963
189,400 Time Warner, Inc.# 11,506,050
10,500 Times Mirror Co. 691,031
34,700 Tribune Co.# 1,726,325
102,000 Viacom, Inc.--Class B* 4,309,500
--------------
26,230,206
--------------
RAILROAD TRANSPORTATION (0.5%)
68,100 Burlington Northern Santa Fe Corp. 1,872,750
31,900 CSX Corp.# 1,351,762
16,200 Kansas City Southern Industries, Inc. 752,288
55,700 Norfolk Southern Corp. 1,364,650
36,300 Union Pacific Corp.# 1,744,669
--------------
7,086,119
--------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (0.5%)
5,900 Armstrong World Industries# 265,131
11,100 Cooper Tire and Rubber Co. 195,637
22,900 Goodyear Tire & Rubber Co. 1,102,063
36,700 Illinois Tool Works, Inc. 2,736,444
41,300 Newell Rubbermaid, Inc.# 1,179,631
41,200 Nike, Inc.--Class B 2,343,250
8,200 Reebok International Ltd.* 87,638
12,200 Sealed Air Corp.* 626,013
8,400 Tupperware Corp. 170,100
--------------
8,705,907
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (1.2%)
17,100 Bear Stearns Cos., Inc. 657,281
119,800 Charles Schwab Corp. 4,035,763
36,900 Franklin Resources, Inc. 1,134,675
17,600 Lehman Brothers Holding, Inc. 1,026,300
54,100 Merrill Lynch & Co., Inc. 3,634,844
83,600 Morgan Stanley Dean Witter & Co. 7,456,075
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (continued)
21,300 Paine Webber Group, Inc. $ 772,125
--------------
18,717,063
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (0.2%)
35,800 Corning, Inc.# 2,454,538
8,000 Owens Corning 173,500
22,800 Owens-Illinois, Inc.* 451,725
--------------
3,079,763
--------------
TEXTILE MILL PRODUCTS (0.0%)
4,900 Russell Corp. 69,519
2,600 Springs Industries, Inc.--Class A 88,237
--------------
157,756
--------------
TOBACCO PRODUCTS (0.8%)
350,100 Philip Morris Cos., Inc. 11,969,044
--------------
TRANSPORTATION BY AIR (0.3%)
22,000 AMR Corp.* 1,199,000
20,600 Delta Airlines, Inc.# 999,100
43,600 FDX Corp.* 1,689,500
73,800 Southwest Airlines Co. 1,120,838
10,500 US Airways Group, Inc.* 275,625
--------------
5,284,063
--------------
TRANSPORTATION EQUIPMENT (2.7%)
80,600 Allied-Signal, Inc. 4,830,962
140,700 Boeing Co. 5,997,337
24,300 Dana Corp. 902,138
82,800 Delphi Automotive Systems Corp. 1,329,975
10,600 Eaton Corp. 914,913
4,900 Fleetwood Enterprises, Inc. 98,919
177,200 Ford Motor Co. 8,893,225
29,200 General Dynamics Corp. 1,823,175
94,300 General Motors Corp. 5,935,006
57,900 Lockheed Martin Corp.# 1,892,606
9,700 Navistar International Corp.* 451,050
10,200 Northrop Grumman Corp. 648,338
11,500 PACCAR, Inc. 585,063
28,000 Rockwell International Corp. 1,470,000
22,000 Textron, Inc. 1,702,250
17,800 TRW, Inc. 885,550
70,500 United Technologies Corp. 4,181,531
--------------
42,542,038
--------------
WATER TRANSPORTATION (0.2%)
89,800 Carnival Corp. 3,906,300
--------------
WHOLESALE TRADE-DURABLE GOODS (0.1%)
26,200 Genuine Parts Co. 695,937
13,700 Grainger (W.W.), Inc. 658,456
4,200 Potlatch Corp. 172,988
--------------
1,527,381
--------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
85
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
WHOLESALE TRADE-NONDURABLE GOODS (0.3%)
39,900 Cardinal Health, Inc. $ 2,174,550
20,300 SUPERVALU, Inc. 442,794
48,500 Sysco Corp. 1,700,531
--------------
4,317,875
--------------
TOTAL COMMON STOCK (COST $1,024,832,164) 1,550,018,336
--------------
CORPORATE NOTES (0.2%)
1,605,000 NationsBank Corp., 5.47% V/R, 7/1/04 1,605,000
1,600,000 Spintab/Swedmortgage, 6.01% V/R, 12/20/99 1,599,520
--------------
TOTAL CORPORATE NOTES (COST $3,197,667) 3,204,520
--------------
TIME DEPOSITS (1.9%)
29,635,292 Union Bank of Switzerland, 5.63%, 10/1/99
(cost $29,635,292) 29,635,292
--------------
U.S. TREASURY BILLS (0.1%)
2,410,000 4.93% yield, 4/27/00++ (cost $2,344,643) 2,343,821
--------------
TOTAL INVESTMENTS (100.0%) (COST $1,060,009,766) $1,585,201,969
==============
FINANCIAL FUTURES CONTRACTS++
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
POSITION CONTRACTS INDEX GAIN (LOSS)
- --------------------- --------- ------------------------------------- -----------
<S> <C> <C> <C>
Long 98 S&P 500 Futures, Expiring December
17, 1999 (notional value
$31,805,900) $(1,446,675)
</TABLE>
<TABLE>
<C> <S> <C>
- ---------------------------------------------------------------------------------
INCOME EQUITY PORTFOLIO
- ---------------------------------------------------------------------------------
COMMON STOCK (97.5%)
BUSINESS SERVICES (1.8%)
223,657 Gartner Group, Inc., Class B* $ 3,732,276
1,717,800 IMS Health, Inc. 39,187,313
--------------
42,919,589
--------------
CHEMICALS & ALLIED PRODUCTS (14.5%)
1,050,500 E.I. du Pont de Nemours & Co. 63,949,187
520,750 Johnson & Johnson# 47,843,906
844,800 Merck & Co., Inc. 54,753,600
1,591,200 Pfizer, Inc. 57,183,750
824,800 Procter & Gamble Co.# 77,325,000
1,491,811 Rohm & Haas Co.# 53,891,672
--------------
354,947,115
--------------
COMMUNICATIONS (5.6%)
1,791,800 AT&T Corp.# 77,943,300
782,600 GTE Corp. 60,162,375
--------------
138,105,675
--------------
DEPOSITORY INSTITUTIONS (4.0%)
470,650 J.P. Morgan & Co., Inc.# 53,771,762
1,427,850 U.S. Bancorp# 43,103,222
--------------
96,874,984
--------------
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
- ---------------------------------------------------------------------------------
INCOME EQUITY PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
EATING & DRINKING PLACES (2.1%)
1,205,500 McDonald's Corp. $ 51,836,500
--------------
ELECTRIC, GAS & SANITARY SERVICES (5.5%)
543,000 Consolidated Natural Gas Co. 33,869,625
460,750 Pacific Gas & Electric Co. 11,921,906
604,100 Public Service Enterprise Group, Inc.# 23,333,362
1,426,350 Texas Utilities Co. 53,220,684
679,832 Waste Management, Inc.# 13,086,766
--------------
135,432,343
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(9.5%)
1,047,000 Emerson Electric Co. 66,157,312
550,978 General Electric Co.# 65,325,329
1,566,292 Lucent Technologies, Inc. 101,613,194
--------------
233,095,835
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED
SERVICES (1.9%)
1,563,600 Dun & Bradstreet Corp.# 46,712,550
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT (2.7%)
2,036,600 Fortune Brands, Inc. 65,680,350
--------------
FOOD & KINDRED PRODUCTS (4.7%)
2,462,640 PepsiCo, Inc. 74,494,860
1,754,500 Sara Lee Corp. 41,121,094
--------------
115,615,954
--------------
GENERAL MERCHANDISE STORES (7.2%)
965,800 Dayton Hudson Corp. 58,008,363
1,138,400 J.C. Penney Co., Inc.# 39,132,500
1,544,250 May Department Stores Co. 56,268,609
773,830 Sears, Roebuck & Co. 24,278,916
--------------
177,688,388
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (4.5%)
1,206,200 Hewlett-Packard Co.# 110,970,400
--------------
INSURANCE CARRIERS (6.1%)
680,408 Aegon NV ADR# 58,855,292
686,750 American General Corp. 43,394,016
1,740,000 St. Paul Cos., Inc.# 47,850,000
--------------
150,099,308
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS (4.3%)
544,050 Eastman Kodak Co. 41,041,772
567,600 Honeywell, Inc. 63,180,975
--------------
104,222,747
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (4.0%)
953,647 Tyco International Ltd.# 98,464,053
--------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
86
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INCOME EQUITY PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
NONDEPOSITORY CREDIT INSTITUTIONS (2.3%)
412,300 American Express Co.# $ 55,505,888
--------------
OIL & GAS EXTRACTION (1.5%)
585,100 Schlumberger, Ltd.# 36,459,044
--------------
PAPER & ALLIED PRODUCTS (2.2%)
564,458 Minnesota Mining and Manufacturing Co.# 54,223,247
--------------
PETROLEUM REFINING & RELATED INDUSTRIES (7.6%)
538,200 Atlantic Richfield Co. 47,697,975
458,750 Chevron Corp. 40,714,062
541,102 Exxon Corp. 41,089,933
305,900 Mobil Corp. 30,819,425
440,600 Royal Dutch Petroleum Co. - NY Registered
Shares 26,022,938
--------------
186,344,333
--------------
PHARMACEUTICAL PREPARATIONS (2.1%)
1,237,800 American Home Products Corp. 51,368,700
--------------
TOBACCO PRODUCTS (1.6%)
1,176,550 Philip Morris Cos., Inc. 40,223,303
--------------
TRANSPORTATION EQUIPMENT (1.8%)
738,600 United Technologies Corp. 43,808,213
--------------
TOTAL COMMON STOCK (COST $1,486,932,560) 2,390,598,519
--------------
REPURCHASE AGREEMENTS (2.5%)
60,742,736 Deutsche Bank, 5.48%, 10/1/99
(cost $60,742,736)** 60,742,736
--------------
TOTAL INVESTMENTS (100.0%) (COST $1,547,675,296) $2,451,341,255
==============
- ---------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- ---------------------------------------------------------------------------------
COMMON STOCK (100.0%)
APPAREL & ACCESSORY STORES (2.0%)
202,200 Ross Stores, Inc. $ 4,069,275
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS (2.2%)
153,660 Tommy Hilfiger Corp.*# 4,331,291
--------------
BUSINESS SERVICES (8.5%)
78,685 BMC Software, Inc.*# 5,630,895
59,450 Microsoft Corp.* 5,383,941
131,810 Unisys Corp.* 5,947,926
--------------
16,962,762
--------------
CHEMICALS & ALLIED PRODUCTS (5.0%)
72,280 Amgen, Inc.* 5,890,820
149,230 Chiron Corp.*# 4,131,806
--------------
10,022,626
--------------
COMMUNICATIONS (5.2%)
110,520 BellSouth Corp. 4,973,400
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
COMMUNICATIONS (continued)
132,130 CenturyTel, Inc. $ 5,367,781
--------------
10,341,181
--------------
DEPOSITORY INSTITUTIONS (7.1%)
220,815 AmSouth Bancorp# 5,175,352
60,800 Chase Manhattan Corp. 4,582,800
246,020 Dime Bancorp, Inc. 4,305,350
--------------
14,063,502
--------------
EATING & DRINKING PLACES (2.5%)
252,145 Darden Restaurants, Inc. 4,932,587
--------------
ELECTRIC, GAS & SANITARY SERVICES (2.3%)
238,380 IPALCO Enterprises, Inc. 4,633,511
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(6.0%)
89,160 Lucent Technologies, Inc. 5,784,255
75,000 Texas Instruments, Inc. 6,168,750
--------------
11,953,005
--------------
FOOD & KINDRED PRODUCTS (7.7%)
72,500 Anheuser-Busch Cos., Inc.# 5,079,531
218,110 IBP, Inc. 5,384,591
76,990 Quaker Oats Co. 4,763,756
--------------
15,227,878
--------------
FORESTRY (2.4%)
81,430 Weyerhaeuser Co.# 4,692,404
--------------
GENERAL MERCHANDISE STORES (4.9%)
91,050 Dayton Hudson Corp. 5,468,691
154,450 TJX Cos., Inc. 4,334,253
--------------
9,802,944
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (12.9%)
69,190 Apple Computer, Inc.*# 4,380,592
90,420 EMC Corp.*# 6,459,379
51,690 Hewlett-Packard Co. 4,755,480
82,130 Ingersoll-Rand Co. 4,512,016
69,160 Lexmark International Group, Inc.* 5,567,380
--------------
25,674,847
--------------
INSURANCE CARRIERS (4.6%)
77,900 Jefferson-Pilot Corp. 4,922,306
84,640 United Healthcare Corp. 4,120,910
--------------
9,043,216
--------------
NONDEPOSITORY CREDIT INSTITUTIONS (2.4%)
76,490 Fannie Mae 4,794,967
--------------
PETROLEUM REFINING & RELATED INDUSTRIES (2.8%)
90,740 Amerada Hess Corp.# 5,557,825
--------------
PHARMACEUTICAL PREPARATIONS (2.1%)
95,200 Schering-Plough Corp. 4,153,100
--------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
87
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
PRIMARY METAL INDUSTRIES (2.4%)
101,490 Nucor Corp. $ 4,833,461
--------------
PRINTING & PUBLICATIONS (2.5%)
92,500 Knight-Ridder, Inc.# 5,075,938
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (2.4%)
53,600 Morgan Stanley Dean Witter & Co. 4,780,450
--------------
TRANSPORTATION BY AIR (2.5%)
77,580 UAL Corp.*# 5,066,944
--------------
TRANSPORTATION EQUIPMENT (7.0%)
90,140 Ford Motor Co. 4,523,901
72,780 General Dynamics Corp. 4,544,201
95,695 PACCAR, Inc. 4,868,483
--------------
13,936,585
--------------
WATER TRANSPORTATION (2.6%)
115,840 Royal Caribbean Cruises Ltd.# 5,212,800
--------------
TOTAL COMMON STOCK (COST $168,022,253) 199,163,099
--------------
TOTAL INVESTMENTS (100.0%) (COST $168,022,253) $ 199,163,099
==============
- ---------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- ---------------------------------------------------------------------------------
COMMON STOCK (97.7%)
AMUSEMENT & RECREATION SERVICES (0.6%)
458,590 Walt Disney Co.*# $ 11,866,016
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS (2.1%)
732,000 Cintas Corp.# 42,318,750
--------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS (5.6%)
187,800 Fastenal Co.# 8,850,075
1,524,478 Home Depot, Inc.# 104,617,303
--------------
113,467,378
--------------
BUSINESS SERVICES (19.4%)
839,100 Automatic Data Processing, Inc.# 37,444,837
393,800 DST Systems, Inc.*# 22,397,375
678,000 First Data Corp. 29,747,250
903,212 Fiserv, Inc.* 29,354,390
330,597 Gartner Group, Inc., Class B*# 5,516,837
2,901,100 IMS Health, Inc.# 66,181,344
2,119,260 Microsoft Corp.* 191,925,484
524,200 Sungard Data Systems, Inc.* 13,793,013
--------------
396,360,530
--------------
CHEMICALS & ALLIED PRODUCTS (8.6%)
844,200 Merck & Co., Inc. 54,714,712
2,468,900 Pfizer, Inc. 88,726,094
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
CHEMICALS & ALLIED PRODUCTS (continued)
499,100 Warner-Lambert Co. $ 33,127,768
--------------
176,568,574
--------------
DEPOSITORY INSTITUTIONS (1.2%)
365,000 State Street Corp. 23,588,125
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(21.0%)
1,768,600 Intel Corp.# 131,429,087
1,509,800 Lucent Technologies, Inc. 97,948,275
540,700 Nokia Corp. ADR# 48,561,619
1,594,600 Solectron Corp.*# 114,512,213
1,151,800 Telfonaktiebolaget LM Ericsson, Series B
ADR 35,993,750
--------------
428,444,944
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (2.8%)
473,700 Gartner Group, Inc.# 7,549,594
1,435,999 Paychex, Inc.# 49,003,466
--------------
56,553,060
--------------
FOOD & KINDRED PRODUCTS (1.6%)
678,300 Coca-Cola Co. 32,600,794
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (9.6%)
2,152,950 Cisco Systems, Inc.*# 147,611,634
664,500 EMC Corp.*# 47,470,219
--------------
195,081,853
--------------
INSURANCE CARRIERS (4.2%)
994,091 American International Group, Inc. 86,423,786
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS (4.5%)
2,584,200 Medtronic, Inc.# 91,739,100
--------------
MISCELLANEOUS RETAIL (2.9%)
2,733,075 Staples, Inc.* 59,615,198
--------------
OIL & GAS EXTRACTION (0.8%)
259,200 Schlumberger, Ltd.# 16,151,400
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (11.4%)
2,772,550 Charles Schwab Corp. 93,400,278
1,224,800 Franklin Resources, Inc. 37,662,600
964,700 Goldman Sachs Group, Inc. 58,846,700
1,536,000 T. Rowe Price 42,144,000
--------------
232,053,578
--------------
WHOLESALE TRADE-NONDURABLE GOODS (1.4%)
517,700 Cardinal Health, Inc. 28,214,650
--------------
TOTAL COMMON STOCK (COST $1,247,640,963) 1,991,047,736
--------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
88
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (2.3%)
47,689,127 Deutsche Bank, 5.48%, 10/1/99
(Cost $47,689,127)** $ 47,689,127
--------------
TOTAL INVESTMENTS (100.0%) (COST $1,295,330,090) $2,038,736,863
==============
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- ---------------------------------------------------------------------------------
COMMON STOCK (93.3%)
AGRICULTURAL PRODUCTION-CROPS (0.4%)
27,900 Chiquita Brands International, Inc. $ 165,656
16,300 Delta & Pine Land Co. 421,763
--------------
587,419
--------------
AGRICULTURAL PRODUCTION-LIVESTOCK & ANIMAL SPECIALTIES (0.1%)
8,600 Michael Foods, Inc. 226,019
--------------
AMUSEMENT & RECREATION SERVICES (0.4%)
5,000 Anchor Gaming* 297,500
11,100 Hollywood Park, Inc.* 170,662
13,600 Players International, Inc.* 100,726
--------------
568,888
--------------
APPAREL & ACCESSORY STORES (1.1%)
11,200 AnnTaylor Stores Corp.* 457,800
6,000 Ashworth, Inc.* 28,500
11,200 Cato Corp. 157,850
8,400 Dress Barn, Inc.* 154,088
9,100 Footstar, Inc.* 320,775
14,200 Goody's Family Clothing, Inc.* 114,488
10,300 Gymboree Corp.* 70,813
6,000 J. Baker, Inc.# 47,250
13,300 Just For Feet, Inc.*# 27,431
13,100 Pacific Sunwear of California, Inc.* 367,210
--------------
1,746,205
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS (0.8%)
9,800 Authentic Fitness Corp. 172,112
6,700 Cyrk, Inc.* 37,060
3,100 Haggar Corp. 39,137
13,700 Hartmarx Corp.* 54,800
11,800 Kellwood Co. 259,600
14,700 Nautica Enterprises, Inc.* 237,038
6,900 Oshkosh B'Gosh, Inc. 110,185
11,600 Phillips-Van Heusen Corp. 102,950
6,000 Pillowtex Corp.# 45,000
9,500 Quiksilver, Inc.* 173,375
--------------
1,231,257
--------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (0.4%)
7,100 Discount Auto Parts, Inc.* 114,488
10,800 O'Reilly Automotive, Inc.* 514,688
--------------
629,176
--------------
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
AUTOMOTIVE REPAIR, SERVICES & PARKING (0.5%)
15,600 Central Parking Corp.# $ 456,300
24,400 Rollins Truck Leasing Corp. 247,050
--------------
703,350
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS (0.8%)
27,300 D.R. Horton, Inc. 353,194
9,500 MDC Holdings, Inc. 153,781
6,300 Ryland Group, Inc. 143,325
5,200 Southern Energy Homes, Inc.* 13,650
12,600 Standard Pacific Corp. 129,150
15,500 Toll Brothers, Inc.* 295,469
5,700 U.S. Home Corp.* 158,531
--------------
1,247,100
--------------
BUSINESS SERVICES (11.1%)
9,400 ABM Industries, Inc. 238,524
36,000 Acxiom Corp.* 707,626
9,000 ADVO, Inc.* 179,437
17,800 American Management Systems, Inc.* 456,681
9,600 Analysts International Corp. 99,600
10,600 Aspen Technology, Inc.* 103,350
11,400 BISYS Group, Inc.* 534,731
7,800 Catalina Marketing Corp.*# 661,537
14,300 Cerner Corp.* 218,074
6,300 ChoicePoint, Inc.* 424,462
24,800 Ciber, Inc.*# 379,750
9,800 Clarify, Inc.* 493,062
17,400 Cognex Corp.* 525,263
8,900 Computer Task Group, Inc. 131,275
11,000 Dendrite International, Inc.* 519,750
17,300 Epicor Software Corp.* 99,475
6,600 FactSet Research Systems, Inc. 375,375
6,000 Fair, Isaac and Co., Inc. 168,375
13,700 FileNet Corp.* 146,419
9,400 Gerber Scientific, Inc. 210,325
16,400 Harbinger Corp.* 276,750
8,500 Henry (Jack) & Associates 313,969
10,300 HNC Software, Inc.* 408,781
13,000 Hyperion Solutions Corp.* 286,000
19,300 Inacom Corp.* 177,319
11,900 Information Resources, Inc.* 131,644
4,900 Insurance Auto Auctions, Inc.* 72,888
27,800 Interim Services, Inc.* 455,225
5,400 Kronos, Inc.* 198,113
18,200 Labor Ready, Inc.* 183,138
8,000 Lason, Inc.* 356,250
18,200 Macromedia, Inc.* 743,925
16,100 Mercury Interactive Corp.* 1,039,456
16,200 Midway Games, Inc.* 255,150
13,500 National Computer Systems, Inc. 517,641
14,400 National Data Corp. 374,400
21,200 National Instruments Corp.* 749,289
9,000 Network Equipment Technologies, Inc.* 82,688
8,700 Primark Corp.* 247,406
7,200 Progress Software Corp.* 225,900
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
89
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
BUSINESS SERVICES (continued)
5,700 QRS Corp.* $ 365,513
12,300 Remedy Corp.* 349,013
16,700 RSA Security, Inc.* 443,594
22,800 S3, Inc.* 237,975
12,400 StaffMark, Inc.* 98,425
17,800 Technology Solutions, Inc.* 251,425
20,300 True North Communications, Inc. 738,413
11,500 Vantive Corp.* 99,906
12,800 Visio Corp.* 502,400
6,400 Volt Information Sciences, Inc.* 155,200
4,300 Wall Data, Inc.* 23,113
--------------
17,034,000
--------------
CHEMICALS & ALLIED PRODUCTS (4.7%)
22,300 Advanced Tissue Sciences, Inc.*# 68,641
18,500 Alliance Pharmaceutical Corp.* 93,655
11,700 Alpharma, Inc.# 413,156
9,700 Barr Laboratories, Inc.* 307,975
9,700 Biomatrix, Inc.*# 217,644
10,400 Cambrex Corp. 274,950
7,700 ChemFirst, Inc. 210,306
18,700 Dura Pharmaceuticals, Inc.* 260,631
10,100 Geon Co. 260,075
8,800 IDEC Pharmaceuticals Corp.*# 827,475
10,600 Immune Response Corp.*# 51,675
18,400 Jones Pharma, Inc. 606,626
9,900 Lilly Industries Inc., Class A 134,888
16,500 Liposome Co., Inc.* 125,555
10,700 MacDermid, Inc. 364,469
4,300 McWhorter Technologies, Inc.* 63,425
11,100 Mississippi Chemical Corp. 77,700
7,400 Natures Sunshine Product, Inc. 70,069
28,500 NBTY, Inc.* 217,313
13,900 North American Vaccine, Inc.*# 104,250
9,100 Noven Pharmaceuticals, Inc.* 77,350
10,100 OM Group, Inc. 387,588
17,750 Omnova Solutions, Inc.* 158,641
10,700 PAREXEL International Corp.* 97,638
3,200 Penford Corp. 43,600
7,900 Protein Design Labs, Inc.* 285,388
3,800 Quaker Chemical Corp. 63,175
13,500 Roberts Pharmaceutical Corp.* 408,375
7,800 Scotts Co.* 270,075
5,900 USA Detergents, Inc.* 29,131
10,800 Vertex Pharmaceuticals, Inc.*# 335,475
9,600 W.H. Brady Co. 307,200
--------------
7,214,114
--------------
COMMUNICATIONS (0.4%)
22,700 Brightpoint, Inc.* 165,286
21,400 General Communications, Inc.* 111,682
26,000 TALK.com, Inc.*# 335,564
--------------
612,532
--------------
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
CONSTRUCTION-SPECIAL TRADE CONTRACTORS (0.7%)
11,800 Apogee Enterprises, Inc. $ 82,969
4,400 Chemed Corp. 133,100
10,800 Dycom Industries, Inc.* 455,625
10,800 Insituform Technologies, Class A* 270,000
7,500 Service Experts, Inc.* 77,813
--------------
1,019,507
--------------
CONSUMER PRODUCTS (0.0%)
3,300 Swiss Army Brands, Inc.* 30,525
--------------
DEPOSITORY INSTITUTIONS (6.8%)
10,800 Anchor Bancorp Wisconsin, Inc. 175,500
9,900 Banknorth Group, Inc. 295,762
10,900 Carolina First Corp. 215,955
12,100 Centura Banks, Inc. 500,637
12,000 Chittenden Corp. 342,000
11,800 Commerce Bancorp, Inc. 489,700
25,700 Commercial Federal Corp. 504,362
20,000 Community First Bankshares, Inc. 337,500
22,700 Cullen/Frost Bankers, Inc. 567,500
12,000 Downey Financial Corp. 241,500
12,300 First Bancorp/Puerto Rico 242,925
11,800 First Midwest Bancorp, Inc. 450,613
38,400 FirstMerit Corp. 974,400
16,500 Hudson United Bancorp# 508,406
3,900 JSB Financial, Inc. 223,275
10,300 MAF Bancorp, Inc. 204,713
11,100 Premier Bancshares, Inc. 194,250
10,800 Provident Bankshares Corp. 229,838
9,100 Queens County Bancorp, Inc. 251,388
12,000 Riggs National Corp. 202,500
8,900 Silicon Valley Bancshares* 214,713
17,000 St. Paul Bancorp, Inc. 388,875
15,700 Susquehanna Bancshares, Inc. 270,825
11,400 TrustCo Bank Corp NY 336,657
7,800 U.S. Trust Corp. 626,925
18,400 United Bankshares, Inc. 447,350
18,200 UST Corp. 559,650
9,700 Whitney Holding Corp. 333,438
--------------
10,331,157
--------------
EATING & DRINKING PLACES (1.9%)
12,100 Applebee's International, Inc.* 407,618
11,500 CEC Entertainment, Inc.* 412,563
8,600 Cheesecake Factory, Inc.* 238,650
22,100 CKE Restaurants, Inc. 160,225
11,300 Consolidated Products, Inc.* 110,175
16,200 Foodmaker, Inc.* 403,988
8,500 IHOP Corp.* 172,125
10,900 Landry's Seafood Restaurants, Inc.* 87,200
9,500 Luby's, Inc. 109,250
13,600 Ruby Tuesday, Inc. 265,200
15,700 Ryan's Family Steak Houses, Inc.* 141,300
7,900 Sonic Corp.* 240,456
5,700 Taco Cabana, Inc., Class A* 55,219
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
90
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
EATING & DRINKING PLACES (continued)
9,700 TCBY Enterprises, Inc. $ 44,256
--------------
2,848,225
--------------
EDUCATIONAL SERVICES (0.4%)
29,500 DeVry, Inc.* 590,000
--------------
ELECTRIC, GAS & SANITARY SERVICES (4.0%)
3,800 American States Water Co. 125,874
4,800 Aquarion Co. 172,200
13,200 Atmos Energy Corp. 318,450
3,100 Bangor Hydro-Electric Co. 51,150
4,700 Cascade Natural Gas Corp. 84,012
7,200 Central Hudson Gas & Electric Corp. 283,500
4,900 Central Vermont Public Service Corp. 64,618
5,800 CILCORP, Inc. 375,912
4,400 Connecticut Energy Corp. 170,224
8,700 Eastern Utilities Associates 259,913
12,700 Energen Corp. 257,175
2,300 Green Mountain Power Corp. 23,863
7,600 New Jersey Resources Corp. 304,000
10,600 Northwest Natural Gas Co. 273,613
9,800 NorthWestern Corp. 222,950
4,600 Pennsylvania Enterprises, Inc. 149,213
17,300 Philadelphia Suburban Corp. 407,631
13,200 Piedmont Natural Gas Co. 400,125
8,700 Public Service Co. of North Carolina,
Inc. 269,700
13,000 Southwest Gas Corp. 350,188
10,600 Southwestern Energy Co. 96,063
5,700 TNP Enterprises, Inc. 221,944
6,100 United Illuminating Co. 295,088
16,500 United Water Resources, Inc. 538,313
15,900 Wicor, Inc. 462,094
--------------
6,177,813
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(11.1%)
6,300 Adaptive Broadband Corp.* 211,050
11,700 Allen Group, Inc.* 114,074
8,200 Alpha Industries, Inc.* 462,531
15,900 Artesyn Technologies, Inc.* 301,603
20,200 Aspect Telecommunications Corp.* 342,770
15,400 Baldor Electric Co. 291,637
6,900 Benchmark Electronics, Inc.* 243,655
11,600 BMC Industries, Inc. 142,825
15,700 Burr-Brown Corp.* 620,150
5,400 C&D Technologies, Inc. 196,088
4,500 C-Cor Electronics, Inc.* 136,688
17,000 C-Cube Microsystems, Inc.* 739,500
12,000 Cable Design Technologies Corp.* 273,750
2,500 Centigram Communications Corp.* 27,344
12,800 Checkpoint Systems, Inc.* 119,200
11,700 CTS Corp. 672,750
6,500 Customtracks Corp.*# 192,563
12,300 Dallas Semiconductor Corp. 657,281
27,100 Digital Microwave Corp.* 425,131
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
9,500 Dionex Corp.* $ 406,125
17,400 DSP Communications, Inc.* 330,600
5,500 Electro Scientific Industries, Inc.* 293,047
9,100 Etec Systems, Inc.* 342,388
15,600 General Semiconductor, Inc.* 160,875
5,800 HADCO Corp.* 250,850
7,500 Harman International Industries, Inc. 315,469
4,700 Harmon Industries, Inc. 59,044
9,500 Helix Technology Corp. 315,875
10,500 Hutchinson Technology, Inc.* 283,500
6,300 Innovex, Inc. 56,700
11,000 Inter-Tel, Inc. 195,250
22,000 International Rectifier Corp.* 335,500
13,600 InterVoice, Inc.* 150,450
6,300 Itron, Inc.*# 37,013
16,700 Kemet Corp.* 533,879
30,200 Lattice Semiconductor Corp.* 896,563
15,100 Methode Electronics, Inc. 285,013
26,000 Micrel, Inc.* 1,127,750
3,100 National Presto Industries, Inc. 119,738
7,800 Oak Industries, Inc.*# 265,200
27,300 P-COM, Inc.*# 191,100
4,400 Park Electrochemical Corp. 144,650
10,100 Photronics, Inc.* 226,619
17,200 Picturetel Corp.* 73,100
7,100 Plantronics, Inc.* 353,225
7,400 Plexus Corp.* 226,625
8,500 Powerwave Technologies, Inc.* 409,860
21,100 Read-Rite Corp.* 98,906
7,700 Royal Appliance Manufacturing Co.* 38,500
14,000 Silicon Valley Group* 165,375
15,200 SLI, Inc.* 323,950
12,400 SpeedFam International, Inc.* 148,800
6,600 Standard Microsystems Corp.* 61,050
6,300 SymmetriCom, Inc.* 47,250
6,900 Technitrol, Inc. 243,225
6,700 Thomas Industries, Inc. 125,206
3,000 Three-Five Systems, Inc.* 66,375
13,600 Unitrode Corp.* 571,200
11,800 Valence Technology, Inc.*# 55,313
17,600 Vicor Corp.* 399,300
2,800 Watkins-Johnson Co. 93,975
--------------
16,995,023
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (3.4%)
15,900 Billing Information Concepts Corp.* 79,500
22,300 Bio-Technology General Corp.* 213,941
8,100 CDI Corp.* 221,230
13,100 Cephalon, Inc.*# 235,390
10,500 COR Therapeutics, Inc.* 199,500
8,600 Franklin Covey Co.* 66,113
11,900 Incyte Pharmaceuticals, Inc.* 275,188
15,200 MedQuist, Inc.* 508,250
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
91
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (continued)
9,400 NFO Worldwide, Inc.* $ 119,850
12,900 Organogenesis, Inc.*# 95,944
10,500 Pharmaceutical Product Development,
Inc.*# 142,406
20,100 Profit Recovery Group International,
Inc.* 896,963
13,300 Regeneron Pharmaceuticals, Inc.* 108,063
5,500 Stone & Webster, Inc. 154,000
16,200 Tetra Tech, Inc.* 270,338
11,600 U.S. Bioscience, Inc.* 165,300
6,600 URS Corp.* 161,700
36,300 US Oncology, Inc.* 328,969
23,000 Whittman-Hart, Inc.* 891,970
--------------
5,134,615
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT (1.0%)
4,400 Alliant Techsystems, Inc.* 304,975
15,500 AptarGroup, Inc. 414,625
3,000 Butler Manufacturing Co. 78,750
12,900 Griffon Corp.* 103,200
3,600 Insteel Industries, Inc. 32,400
6,500 Material Sciences Corp.* 86,531
11,400 Sturm, Ruger & Co., Inc. 102,600
19,800 Tower Automotive, Inc.* 392,288
--------------
1,515,369
--------------
FINANCIAL SERVICES (0.1%)
10,200 Jefferies Group, Inc. 212,925
--------------
FOOD & KINDRED PRODUCTS (1.7%)
4,500 Agribrands International, Inc.* 223,312
7,600 Canandaigua Brands, Inc.* 454,100
3,700 Coca-Cola Bottling Co. 207,546
15,800 Corn Products International, Inc. 480,913
18,100 Earthgrains Co. 400,463
3,800 J&J Snack Foods Corp.* 75,050
13,000 Ralcorp Holdings, Inc.* 229,938
17,800 Smithfield Foods, Inc.* 476,150
--------------
2,547,472
--------------
FOOD STORES (0.3%)
5,200 Panera Bread Co., Class A* 34,450
11,200 Whole Foods Market, Inc.*# 366,451
--------------
400,901
--------------
FURNITURE & FIXTURES (0.7%)
5,300 Bassett Furniture Industries, Inc. 100,700
17,400 Ethan Allen Interiors, Inc. 553,537
22,200 LA-Z-BOY, Inc.# 423,188
--------------
1,077,425
--------------
GENERAL MERCHANDISE STORES (0.9%)
12,100 Ames Department Stores, Inc.* 385,688
22,400 Casey's General Stores, Inc. 300,301
3,300 GC Cos., Inc.* 99,000
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
GENERAL MERCHANDISE STORES (continued)
5,300 Gottschalks, Inc.* $ 47,700
12,600 Shopko Stores, Inc.* 365,400
19,000 Stein Mart, Inc.* 135,375
--------------
1,333,464
--------------
HEALTH SERVICES (2.9%)
25,100 Coventry Health Care, Inc.* 238,450
4,300 Curative Health Services, Inc.* 20,425
10,600 Enzo Biochem, Inc.* 300,775
16,300 Express Scripts, Inc.* 1,275,475
15,300 Genesis Health Ventures, Inc.* 36,337
12,200 Hooper Holmes, Inc. 312,625
16,800 Idexx Laboratories, Inc.* 289,276
22,500 Integrated Health Services, Inc.* 35,156
10,600 Laser Vision Centers, Inc.* 148,732
13,500 Magellan Health Services, Inc.* 98,719
20,400 Orthodontic Centers of America, Inc.* 357,000
6,600 Pediatrix Medical Group, Inc.*# 91,575
32,300 PhyCor, Inc.* 141,313
18,900 Renal Care Group, Inc.* 414,029
11,400 Sierra Health Services, Inc.* 115,425
5,000 Syncor International Corp.* 187,500
13,400 Universal Health Services, Inc.* 346,725
--------------
4,409,537
--------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION-CONTRACTORS (0.2%)
22,400 Morrison Knudsen Corp.* 231,000
--------------
HOLDING & OTHER INVESTMENT OFFICES (0.1%)
8,100 DBT Online, Inc.* 201,994
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.6%)
15,500 Bombay Co., Inc.* 78,469
16,800 Linens 'N Things, Inc.* 567,000
8,700 MicroAge, Inc.* 18,760
41,000 Pier 1 Imports, Inc. 276,750
--------------
940,979
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (0.3%)
18,900 Aztar Corp.* 193,725
12,700 Marcus Corp. 153,194
21,900 Prime Hospitality Corp.* 175,200
--------------
522,119
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (4.5%)
15,300 Anixter International, Inc.* 355,724
8,700 Apex, Inc.* 162,580
16,500 Applied Power, Inc. 501,187
8,100 Astec Industries, Inc.* 195,412
11,200 Auspex Systems, Inc. 99,400
7,500 Black Box Corp.* 393,750
7,300 Dril-Quip, Inc.* 186,606
8,400 Electroglas, Inc.* 196,350
9,500 Exabyte Corp.* 41,266
15,300 Fedders Corp. 91,800
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
92
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
6,100 Flow International Corp.* $ 63,288
6,300 Gardner Denver, Inc.* 95,288
9,500 Global Industrial Technologies, Inc.* 115,781
8,600 Graco, Inc. 282,188
12,600 IDEX Corp. 356,738
22,900 Komag, Inc.* 68,700
10,000 Kulicke & Soffa Industries, Inc.* 243,125
5,300 Lindsay Manufacturing Co. 104,013
11,000 Manitowoc Co., Inc. 375,375
6,900 Micro Systems, Inc.* 279,450
19,800 Paxar Corp.* 190,575
4,700 Robbins & Myers, Inc. 72,850
7,700 Scott Technologies, Inc.* 152,075
5,400 SPS Technologies, Inc.* 204,863
6,900 Telxon Corp. 57,788
5,500 Toro Co. 205,563
9,100 Ultratech Stepper, Inc.* 116,025
10,300 Valmont Industries, Inc. 173,813
13,000 Varian Medical Systems, Inc.* 284,375
12,200 Watsco, Inc. 138,775
10,300 Xircom, Inc.* 439,681
13,300 Zebra Technologies Corp.* 604,735
--------------
6,849,139
--------------
INSURANCE AGENTS, BROKERS & SERVICE (0.6%)
7,700 Arthur J. Gallagher & Co. 410,025
5,600 E.W. Blanch Holdings, Inc. 364,700
5,600 Hilb, Rogal and Hamilton Co. 140,350
--------------
915,075
--------------
INSURANCE CARRIERS (2.3%)
15,500 Capital Re Corp. 155,000
8,600 Delphi Financial Group, Class A* 259,612
16,100 Enhance Financial Services Group, Inc. 284,768
12,900 Fidelity National Financial, Inc. 195,919
27,700 First American Financial, Inc. 370,488
29,800 Fremont General Corp. 283,100
14,800 Frontier Insurance Group, Inc. 129,500
18,500 Mutual Risk Management Ltd.# 226,625
11,600 Orion Capital Corp. 549,550
15,700 Radian Group, Inc. 674,119
11,800 Selective Insurance Group, Inc. 222,725
4,500 Trenwick Group, Inc. 74,531
7,300 Zenith National Insurance Corp. 156,038
--------------
3,581,975
--------------
LEATHER & LEATHER PRODUCTS (0.8%)
7,700 Brown Shoe Co., Inc. 141,006
10,800 Justin Industries 153,225
4,800 K-Swiss, Inc.# 151,500
13,700 Timberland Co.* 535,156
17,500 Wolverine World Wide, Inc. 199,063
--------------
1,179,950
--------------
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
LEGAL SERVICES (0.3%)
9,700 Pre-Paid Legal Services, Inc.* $ 381,938
--------------
LOCAL & SUBURBAN TRANSIT & INTERURBAN HIGHWAY PASSENGER TRANSPORTATION (0.0%)
6,200 Rural/Metro Corp.* 41,075
--------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.4%)
20,500 Champion Enterprises, Inc.* 184,500
20,000 Oakwood Homes Corp. 90,000
3,800 Skyline Corp. 97,613
6,600 TJ International, Inc. 165,825
--------------
537,938
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICALGOODS (3.2%)
8,700 ADAC Laboratories* 85,368
3,900 Amcast Industrial Corp. 51,918
5,400 Analogic Corp. 170,437
10,200 Coherent, Inc.* 227,587
5,900 Cooper Cos., Inc. 182,162
10,300 Cygnus, Inc.* 115,554
6,500 Datascope Corp.* 228,313
5,800 Diagnostic Products Corp. 155,513
7,400 Esterline Technologies Corp.* 116,550
13,600 Fossil, Inc.* 368,050
8,000 Hanger Orthopedic Group, Inc.* 116,000
6,500 Hologic, Inc.* 26,203
21,400 Input/Output, Inc.* 141,775
5,200 Intermagnetics General Corp.* 31,200
12,100 Invacare Corp. 236,706
6,900 Ionics, Inc.* 223,388
6,100 Maxxim Medical, Inc.* 146,019
10,300 Mentor Corp. 293,550
2,500 Nashua Corp.* 22,188
6,000 Osteotech, Inc.* 81,750
13,000 Respironics, Inc.* 107,250
12,900 Roper Industries, Inc. 493,425
10,600 Sola International, Inc.* 163,638
4,000 SpaceLabs Medical, Inc.* 60,500
19,800 Summit Technology, Inc.* 362,588
9,400 Sunrise Medical, Inc.* 56,400
9,600 Trimble Navigation Ltd.* 102,600
7,300 Wesley Jessen VisionCare, Inc.* 227,669
9,000 X-Rite, Inc. 58,500
5,200 Xomed Surgical Products, Inc.* 296,400
--------------
4,949,201
--------------
METAL MINING (0.4%)
6,900 Brush Wellman, Inc. 101,344
9,300 Coeur D'Alene Mines Corp.*# 43,594
28,300 Hecla Mining Co.* 83,131
16,000 Stillwater Mining Co.* 430,000
--------------
658,069
--------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS (0.3%)
11,400 AMCOL International Corp. 168,150
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
93
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS (continued)
8,000 Florida Rock Industries, Inc. $ 278,000
--------------
446,150
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.2%)
7,100 Cross (A.T.) Co.* 29,730
11,500 Jan Bell Marketing, Inc.* 35,219
7,000 K2, Inc. 61,688
6,700 Lydall, Inc.* 69,094
8,800 Russ Berrie & Co., Inc. 184,250
--------------
379,981
--------------
MISCELLANEOUS RETAIL (1.0%)
7,200 Action Performance Cos., Inc.*# 151,650
7,700 Books-A-Million, Inc.*# 63,043
10,900 Cash America International, Inc. 102,869
2,600 Damark International, Inc., Class A* 26,163
8,100 Hancock Fabrics, Inc. 34,931
7,800 Jo-Ann Stores, Inc.* 97,013
3,900 Lillian Vernon Corp. 48,750
12,200 Michaels Stores, Inc.* 359,900
13,500 Sports Authority, Inc.* 43,031
15,400 Zale Corp.* 590,013
--------------
1,517,363
--------------
MOTION PICTURES (0.1%)
10,100 Avid Technology, Inc.* 132,563
4,800 Carmike Cinemas, Inc.* 63,000
--------------
195,563
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (1.2%)
13,600 American Freightways Corp.* 247,350
8,300 Arkansas Best Corp.* 102,712
6,900 Frozen Food Express Industries, Inc. 42,262
12,700 Heartland Express, Inc.* 179,388
4,200 Landstar System, Inc.* 145,950
5,200 M.S. Carriers, Inc.* 124,800
11,200 USFreightways Corp. 530,600
20,100 Werner Enterprises, Inc. 354,263
10,600 Yellow Corp.* 175,563
--------------
1,902,888
--------------
NONDEPOSITORY CREDIT INSTITUTIONS (0.3%)
30,600 AmeriCredit Corp.* 457,088
--------------
OIL & GAS EXTRACTION (2.7%)
5,800 Atwood Oceanics, Inc.* 177,262
12,600 Benton Oil & Gas Co.* 33,862
10,500 Cabot Oil and Gas Corp. 181,124
20,700 Cross Timbers Oil Co. 279,450
8,000 HS Resources, Inc.* 131,000
17,600 Newfield Exploration Co.* 579,700
9,500 Oceaneering International, Inc.* 159,719
7,200 Plains Resources, Inc.* 128,700
17,000 Pogo Producing Co. 352,750
9,000 Pool Energy Services Co.* 221,625
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
OIL & GAS EXTRACTION (continued)
23,800 Pride International, Inc.* $ 337,663
9,000 Remington Oil & Gas Corp.* 51,188
5,100 SEACOR SMIT, Inc.* 261,375
10,300 Seitel, Inc.* 100,425
4,700 St. Mary Land & Exploration Co. 122,788
7,800 Stone Energy Corp.* 396,825
5,700 Tetra Technologies, Inc.* 58,069
18,800 Tuboscope Vetco International Corp.* 233,825
26,500 Vintage Petroleum, Inc.* 357,750
--------------
4,165,100
--------------
PAPER & ALLIED PRODUCTS (0.6%)
15,000 Buckeye Technologies, Inc.* 235,312
5,815 Kimberly-Clark Corp. 305,292
5,700 Pope & Talbot, Inc. 70,538
5,000 Republic Group, Inc. 69,688
6,700 Schweitzer-Mauduit International, Inc. 86,681
11,700 Shorewood Packaging Corp.* 158,681
--------------
926,192
--------------
PERSONAL SERVICES (0.6%)
3,700 Angelica Corp. 42,550
4,200 CPI Corp. 143,588
8,700 G & K Services, Inc. 352,350
16,400 Regis Corp. 315,700
--------------
854,188
--------------
PETROLEUM REFINING & RELATED INDUSTRIES (0.2%)
8,300 Elcor Corp. 207,500
6,600 WD-40 154,482
--------------
361,982
--------------
PRIMARY METAL INDUSTRIES (1.9%)
10,300 Belden, Inc. 211,150
12,600 Birmingham Steel Corp. 96,075
6,800 Commonwealth Industries, Inc. 91,375
21,500 CommScope, Inc.* 698,750
7,000 IMCO Recycling, Inc. 105,000
10,800 Intermet Corp. 91,463
15,200 Mueller Industries, Inc.* 451,250
6,000 Quanex Corp. 153,750
8,800 RTI International Metals*# 88,000
4,700 Steel Technologies, Inc. 54,638
8,900 Texas Industries, Inc. 329,300
15,800 Tredegar Corp. 337,725
7,100 WHX Corp.*# 71,000
5,700 Wolverine Tube, Inc.* 88,350
--------------
2,867,826
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.4%)
15,700 Bowne & Co., Inc. 189,381
6,700 Consolidated Graphics, Inc.* 282,238
6,700 Gibson Greetings, Inc.* 35,594
13,200 John H. Harland Co. 256,575
6,800 Merrill Corp. 135,575
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
94
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
PRINTING, PUBLISHING & ALLIED INDUSTRIES (continued)
6,100 New England Business Service, Inc. $ 174,231
6,000 Thomas Nelson, Inc. 58,500
23,900 Valassis Communications, Inc.* 1,050,106
--------------
2,182,200
--------------
RAILROAD TRANSPORTATION (0.0%)
3,900 RailTex, Inc.* 64,350
--------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (0.3%)
23,600 Safeskin Corp.* 193,964
6,800 Standard Products Co. 240,550
8,800 Titan International, Inc. 90,200
--------------
524,714
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (2.3%)
20,700 Amresco, Inc.* 62,100
5,300 Dain Rauscher Corp. 259,700
15,200 Eaton Vance Corp. 486,400
10,400 Hambrecht & Quist Group* 508,950
24,100 Legg Mason, Inc. 923,331
11,200 Pioneer Group, Inc.* 168,000
20,100 Raymond James Financial, Inc. 400,744
7,500 SEI Investments Co. 669,610
--------------
3,478,835
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (0.9%)
31,100 Gentex Corp.* 642,411
6,900 Libbey, Inc. 203,981
8,200 Lone Star Industries, Inc. 408,975
5,500 Standex International Corp. 148,500
--------------
1,403,867
--------------
TEXTILE MILL PRODUCTS (0.4%)
10,800 Cone Mills Corp.* 52,650
10,100 Delta Woodside Industries, Inc. 27,774
4,800 Dixie Group, Inc.* 37,200
5,100 Galey & Lord, Inc.* 13,388
9,400 Guilford Mills, Inc. 81,075
22,600 Interface, Inc. 115,825
3,400 Oxford Industries, Inc. 73,313
10,900 Triarc Cos., Inc.* 233,669
--------------
634,894
--------------
TRANSPORTATION BY AIR (0.5%)
7,900 Atlantic Coast Airlines Holdings* 140,225
14,400 Mesa Air Group, Inc.* 88,200
6,000 Midwest Express Holdings, Inc.* 157,125
9,000 Offshore Logistics, Inc.* 92,813
8,800 Pittston BAX Group 70,950
10,400 SkyWest, Inc. 228,150
--------------
777,463
--------------
TRANSPORTATION EQUIPMENT (2.4%)
9,900 A. O. Smith Corp. 299,474
11,700 AAR Corp. 210,600
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
TRANSPORTATION EQUIPMENT (continued)
10,900 Arctic Cat, Inc. $ 104,230
10,500 BE Aerospace, Inc.* 125,344
10,200 Clarcor, Inc. 171,488
7,100 Coachmen Industries, Inc. 109,163
17,750 GenCorp, Inc. 186,375
9,000 Group 1 Automotive, Inc.* 164,813
12,300 Halter Marine Group, Inc.* 66,881
4,300 Huffy Corp. 42,463
18,700 JLG Industries, Inc. 284,006
9,400 Kroll-O'Gara Co.* 156,863
8,000 Monaco Coach Corp.* 195,000
15,900 Orbital Sciences Corp.* 278,250
10,600 Polaris Industries, Inc. 367,025
8,900 Regal-Beloit Corp. 184,675
7,700 Simpson Industries, Inc. 85,181
5,300 Spartan Motors, Inc. 26,831
5,600 Standard Motor Products, Inc. 108,850
5,200 Thor Industries, Inc. 132,600
9,800 Wabash National Corp. 199,063
9,400 Winnebago Industries, Inc. 225,013
--------------
3,724,188
--------------
TRANSPORTATION SERVICES (0.8%)
14,200 Air Express International Corp. 322,162
21,300 Expeditors International of Washington,
Inc. 683,598
15,500 Fritz Cos., Inc.* 160,813
--------------
1,166,573
--------------
WATER TRANSPORTATION (0.1%)
8,500 Kirby Corp.* 166,813
--------------
WHOLESALE TRADE-DURABLE GOODS (3.1%)
9,000 Applied Industrial Technologies, Inc. 162,000
6,400 Aviation Sales Co.*# 121,600
8,200 Barnes Group, Inc. 164,512
5,400 Building Materials Holding Corp.* 54,000
6,000 Castle (A.M.) & Co. 75,750
6,200 Commercial Metals Co. 178,250
7,400 Department 56, Inc.* 177,137
6,300 Digi International, Inc.* 68,906
21,100 Ha-Lo Industries, Inc.* 131,875
9,900 Hughes Supply, Inc. 215,325
10,900 Insight Enterprises, Inc.* 354,250
10,000 Kaman Corp. - Class A 127,500
11,900 Kent Electronics Corp.* 220,150
4,400 Lawson Products, Inc. 95,150
7,100 Marshall Industries* 259,150
19,000 Masco Tech, Inc. 307,563
13,900 Owens & Minor, Inc. Holding Co. 133,788
14,300 Patterson Dental Co.* 708,744
11,500 Pioneer-Standard Electronics, Inc. 166,031
11,850 Reliance Steel & Aluminum Co. 248,850
5,100 Simpson Manufacturing Co., Inc.* 239,063
7,900 Specialty Equipment Companies, Inc.* 199,475
9,000 TBC Corp.* 62,297
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
95
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
WHOLESALE TRADE-DURABLE GOODS (continued)
8,800 Universal Forest Products, Inc. $ 114,950
5,200 Vital Signs, Inc. 105,950
8,000 Wynn's International, Inc. 127,500
--------------
4,819,766
--------------
WHOLESALE TRADE-NONDURABLE GOODS (1.7%)
13,800 Barrett Resources Corp.* 509,737
14,300 Bindley Western Industries, Inc. 204,668
10,600 Caraustar Industries, Inc. 270,300
18,900 DIMON, Inc.# 73,238
5,900 Enesco Group, Inc. 90,713
16,500 Fleming Cos., Inc. 161,906
17,800 Men's Wearhouse, Inc.* 382,700
8,600 Myers Industries, Inc. 152,650
4,800 Nash-Finch Co. 33,600
8,600 NCS HealthCare, Inc.* 22,575
5,900 Performance Food Group Co.* 151,188
9,300 Priority Healthcare Corp.* 287,138
19,700 Stride Rite Corp. 137,900
1,596 SUPERVALU, Inc. 34,808
7,700 United Natural Foods, Inc.* 67,616
--------------
2,580,737
--------------
TOTAL COMMON STOCK (COST $157,143,028) 143,013,191
--------------
TIME DEPOSIT (6.1%)
9,284,277 Union Bank of Switzerland, 5.63%, 10/1/99
(cost $9,284,277) 9,284,277
--------------
U.S. TREASURY BILLS (0.6%)
885,000 4.93% yield, 4/27/00 (cost $860,944)## 860,852
--------------
TOTAL INVESTMENTS (100.0%) (COST $167,288,249) $ 153,158,320
==============
FINANCIAL FUTURES CONTRACTS ##
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
POSITION CONTRACTS INDEX GAIN (LOSS)
- --------------------- --------- ----------------------------------- --------------
<S> <C> <C> <C>
Long 50 Russell 2000 Index, Expiring
December 17, 1999 (notional value
$10,737,500) $ (235,200)
</TABLE>
<TABLE>
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
- ---------------------------------------------------------------------------------
COMMON STOCK (95.5%)
AMUSEMENT & RECREATION SERVICES (1.6%)
207,080 Argosy Gaming Co.* $ 2,743,810
--------------
APPAREL & ACCESSORY STORES (4.4%)
84,350 AnnTaylor Stores Corp.* $ 3,447,806
90,610 Talbots, Inc. 4,071,787
--------------
7,519,593
--------------
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
- ---------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS (4.6%)
100,300 Centex Corp. 2,965,118
48,820 NVR, Inc.* 2,465,410
112,070 Ryland Group, Inc. 2,549,592
--------------
7,980,120
--------------
BUSINESS SERVICES (8.7%)
100,230 AVT Corp.* 3,069,544
37,090 Check Point Software Technologies Ltd.*# 3,131,787
148,580 InfoCure Corp.*# 2,804,447
55,840 Kronos, Inc.* 2,048,630
90,280 THQ, Inc.*# 3,893,325
--------------
14,947,733
--------------
CHEMICALS & ALLIED PRODUCTS (6.8%)
81,600 Alpharma, Inc.# 2,881,500
94,940 ChiRex, Inc.* 2,450,638
100,525 Jones Pharma, Inc. 3,314,189
87,010 King Pharmaceuticals, Inc.*# 3,045,350
--------------
11,691,677
--------------
CONSTRUCTION-SPECIAL TRADE CONTRACTORS (2.0%)
136,200 Insituform Technologies, Class A* 3,405,000
--------------
DEPOSITORY INSTITUTIONS (4.8%)
80,450 Bank United Corp. 2,604,569
132,380 PFF Bancorp, Inc. 2,730,337
160,000 Staten Island Bancorp, Inc. 3,010,000
--------------
8,344,906
--------------
EATING & DRINKING PLACES (5.2%)
123,760 Foodmaker, Inc.* 3,086,265
157,100 Ruby Tuesday, Inc. 3,063,450
94,425 Sonic Corp. 2,874,061
--------------
9,023,776
--------------
ELECTRIC, GAS & SANITARY SERVICES (1.6%)
31,490 Calpine Corp.* 2,678,618
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(10.1%)
95,940 C-Cube Microsystems, Inc.* 4,173,390
83,200 DII Group, Inc.* 2,927,600
120,370 Electroglas, Inc.* 2,813,649
196,250 InterVoice, Inc.* 2,171,016
94,494 Salton, Inc.*# 2,852,538
117,080 SLI, Inc.* 2,495,267
--------------
17,433,460
--------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
96
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (1.5%)
96,600 AHL Services, Inc.* $ 2,517,638
--------------
FOOD & KINDRED PRODUCTS (1.7%)
48,930 Canandaigua Brands, Inc.* 2,923,568
--------------
FURNITURE & FIXTURES (1.4%)
128,030 LA-Z-BOY, Inc.# 2,440,572
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (9.3%)
149,100 Applied Science and Technology, Inc.* 3,075,187
108,310 Cybex Computer Products Corp.* 3,614,846
175,600 In Focus Systems, Inc.* 2,941,300
104,730 Terex Corp.* 3,298,995
75,440 Xircom, Inc.* 3,220,345
--------------
16,150,673
--------------
INSURANCE CARRIERS (1.8%)
108,450 MONY Group, Inc. 3,131,494
--------------
LEATHER & LEATHER PRODUCTS (1.7%)
241,040 Genesco, Inc.* 3,013,000
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS (4.1%)
53,600 Orbotech Ltd.* 3,316,500
88,280 Pinnacle Systems, Inc.* 3,740,865
--------------
7,057,365
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (2.1%)
98,580 JAKKS Pacific, Inc.* 3,696,750
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (2.7%)
131,004 American Freightways Corp.* 2,382,635
97,250 M.S. Carriers, Inc.* 2,334,000
--------------
4,716,635
--------------
NONDEPOSITORY CREDIT INSTITUTIONS (1.7%)
98,600 Metris Cos., Inc. 2,902,538
--------------
OIL & GAS EXTRACTION (1.6%)
75,170 Equitable Resources, Inc. 2,842,366
--------------
PETROLEUM REFINING & RELATED INDUSTRIES (1.5%)
161,400 Tesoro Petroleum Corp.* 2,663,100
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (3.4%)
66,600 Central Newspapers, Inc. 2,963,700
82,060 McClatchy Co. 2,933,645
--------------
5,897,345
--------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (1.7%)
99,030 Spartech Corp. 2,902,817
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (1.6%)
55,300 Dain Rauscher Corp. 2,709,700
--------------
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
TRANSPORTATION EQUIPMENT (4.7%)
105,690 A. O. Smith Corp. $ 3,197,123
80,500 Arvin Industries, Inc. 2,490,469
96,430 Monaco Coach Corp.* 2,350,481
--------------
8,038,073
--------------
WHOLESALE TRADE-DURABLE GOODS (1.6%)
141,300 Tower Automotive, Inc.* 2,799,506
--------------
WHOLESALE TRADE-NONDURABLE GOODS (1.6%)
127,710 Men's Wearhouse, Inc.* 2,745,765
--------------
TOTAL COMMON STOCK (COST $144,774,683) 164,917,598
--------------
REPURCHASE AGREEMENTS (4.5%)
7,846,984 Deutsche Bank, 5.48%, 10/1/99 (cost
$7,846,984)** 7,846,984
--------------
TOTAL INVESTMENTS (100.0%) (COST $152,621,667) $ 172,764,582
==============
- ---------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- ---------------------------------------------------------------------------------
COMMON STOCK (97.4%)
AEROSPACE (1.1%)
90,500 BE Aerospace, Inc.* $ 1,080,344
126,300 LMI Aerospace, Inc.* 505,200
--------------
1,585,544
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS (3.0%)
97,300 Genesco, Inc.* 1,216,250
190,662 Phillips-Van Heusen Corp. 1,692,125
85,064 Tropical Sportswear Int'l Corp.* 1,584,317
--------------
4,492,692
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING (1.4%)
101,500 Dollar Thrifty Automotive Group, Inc.* 2,099,781
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS (2.4%)
72,527 M/I Schottenstein Homes, Inc. 1,196,695
125,500 Standard Pacific Corp. 1,286,375
39,800 U.S. Home Corp.* 1,106,938
--------------
3,590,008
--------------
BUSINESS SERVICES (6.6%)
277,000 Acclaim Entertainment, Inc.*# 2,103,483
4,224 Grey Advertising, Inc. 1,554,432
150,300 Midway Games, Inc.* 2,367,225
105,000 Ogden Corp.# 1,050,000
81,464 Symantec Corp.* 2,930,162
--------------
10,005,302
--------------
CHEMICALS & ALLIED PRODUCTS (4.0%)
158,200 Agrium, Inc. 1,572,112
86,600 CK Witco Corp. 1,261,113
77,200 Cytec Industries, Inc.* 1,852,800
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
97
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
CHEMICALS & ALLIED PRODUCTS (continued)
147,800 PAREXEL International Corp.* $ 1,348,675
--------------
6,034,700
--------------
DEPOSITORY INSTITUTIONS (13.0%)
51,400 Andover Bancorp, Inc. 1,545,212
62,466 Banknorth Group, Inc. 1,866,171
53,541 BSB Bancorp, Inc. 1,284,984
84,075 Commercial Federal Corp. 1,649,972
95,400 Commonwealth Bancorp, Inc.# 1,627,763
76,000 First Republic Bank* 2,014,000
94,600 FirstFed Financial Corp.* 1,643,675
75,162 InterWest Bancorp, Inc. 1,559,612
79,011 Medford Bancorp, Inc. 1,214,794
56,900 PFF Bancorp, Inc. 1,173,563
99,700 Seacoast Financial Services Corp. 997,000
74,075 Sun Bancorp, Inc.* 1,185,200
74,700 Webster Financial Corp. 1,904,850
--------------
19,666,796
--------------
ELECTRIC, GAS & SANITARY SERVICES (8.3%)
60,900 Avista Corp. 1,069,556
109,120 Central Vermont Public Service Corp. 1,439,020
207,071 El Paso Electric Co.* 1,863,639
79,300 MCN Energy Group, Inc. 1,362,969
37,400 NSTAR 1,449,250
52,600 RGS Energy Group, Inc. 1,288,700
55,500 TNP Enterprises, Inc. 2,161,031
69,825 WPS Resources Corp. 1,959,464
--------------
12,593,629
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(6.6%)
57,900 Harman International Industries, Inc. 2,435,418
231,100 HMT Technology Corp.* 808,850
150,442 Microsemi Corp.* 1,109,510
129,800 Powell Industries, Inc.* 1,119,525
106,000 Stoneridge, Inc.* 1,841,750
113,925 Vishay Intertechnology, Inc.* 2,705,719
--------------
10,020,772
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (0.9%)
125,100 RCM Technologies, Inc.* 1,344,825
--------------
FOOD & KINDRED PRODUCTS (0.7%)
78,300 Flowers Industries, Inc. 1,061,944
--------------
GENERAL MERCHANDISE STORES (1.0%)
45,000 Ames Department Stores, Inc.*# 1,434,375
--------------
HEALTH SERVICES (0.9%)
74,600 RehabCare Group, Inc.* 1,324,150
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (2.4%)
346,308 Boyd Gaming Corp.* 2,077,848
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (continued)
153,195 Isle of Capri Casinos, Inc.* $ 1,531,950
--------------
3,609,798
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (2.0%)
93,160 Gleason Corp. 1,566,253
77,000 Storage Technology Corp.* 1,482,250
--------------
3,048,503
--------------
INSURANCE CARRIERS (7.6%)
55,100 Berkley W.R. Corp. 1,267,300
49,800 Farm Family Holdings, Inc.* 1,967,100
132,900 Frontier Insurance Group, Inc. 1,162,875
102,178 Harleysville Group, Inc. 1,436,878
122,500 HCC Insurance Holdings, Inc.# 2,059,531
100,365 MIIX Group, Inc. 1,699,932
64,420 MONY Group, Inc. 1,860,128
--------------
11,453,744
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS (4.4%)
62,456 CONMED Corp.* 1,530,172
104,300 Cooper Cos., Inc. 3,220,263
130,200 Hanger Orthopedic Group, Inc.* 1,887,900
--------------
6,638,335
--------------
MISCELLANEOUS RETAIL (2.5%)
100,700 Micro Warehouse, Inc.* 1,214,693
156,600 OfficeMax, Inc.* 910,238
83,500 Tractor Supply Co.* 1,586,500
--------------
3,711,431
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (0.8%)
81,726 Covenant Transportation, Inc.* 1,246,322
--------------
OIL & GAS EXTRACTION (4.0%)
113,200 Pride International, Inc.* 1,606,025
29,000 SEACOR SMIT, Inc.* 1,486,250
122,075 Swift Energy Co.* 1,541,197
57,700 Tidewater, Inc. 1,471,350
--------------
6,104,822
--------------
PAPER & ALLIED PRODUCTS (2.3%)
108,855 FiberMark, Inc.* 1,387,901
156,000 Mail-Well, Inc.* 2,164,500
--------------
3,552,401
--------------
PETROLEUM REFINING & RELATED INDUSTRIES (0.7%)
66,450 Tesoro Petroleum Corp.* 1,096,425
--------------
PRIMARY METAL INDUSTRIES (5.4%)
79,000 AK Steel Holding Corp. 1,441,750
257,722 Armco, Inc.* 1,804,055
78,450 Chase Industries, Inc.* 671,728
95,600 Intermet Corp. 809,617
227,358 National Steel Corp. 1,577,296
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
98
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
PRIMARY METAL INDUSTRIES (continued)
49,600 Texas Industries, Inc. $ 1,835,200
--------------
8,139,646
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.0%)
130,500 Bowne & Co., Inc. 1,574,156
--------------
REAL ESTATE INVESTMENT TRUST (5.0%)
76,200 Franchise Finance Corp. of America 1,781,175
92,800 Glenborough Realty Trust, Inc. 1,531,200
76,700 Healthcare Realty Trust, Inc. 1,433,331
53,094 Storage USA, Inc. 1,460,085
159,000 Winston Hotels, Inc. 1,411,125
--------------
7,616,916
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (1.0%)
89,700 Ragen Mackezie Group, Inc.* 1,575,356
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (1.1%)
30,400 Southdown, Inc. 1,626,400
--------------
TRANSPORTATION BY AIR (0.9%)
79,700 America West Airlines, Inc.* 1,379,806
--------------
TRANSPORTATION EQUIPMENT (1.6%)
100,900 Huffy Corp. 996,388
81,300 Transportation Technologies Industries,
Inc.* 1,407,506
--------------
2,403,894
--------------
WHOLESALE TRADE-DURABLE GOODS (2.1%)
91,400 Associated Materials, Inc. 1,405,275
216,869 Griffon Corp.* 1,734,952
--------------
3,140,227
--------------
WHOLESALE TRADE-NONDURABLE GOODS (2.7%)
241,253 Standard Commercial Corp. 965,012
44,560 Suiza Foods Corp.* 1,671,000
65,088 SUPERVALU, Inc. 1,419,732
--------------
4,055,744
--------------
TOTAL COMMON STOCK (COST $150,636,098) 147,228,444
--------------
REPURCHASE AGREEMENTS (2.6%)
3,964,573 Deutsche Bank, 5.48%, 10/1/99
(cost $3,964,573)** 3,964,573
--------------
TOTAL INVESTMENTS (100.0%) (COST $154,600,671) $ 151,193,017
==============
- ---------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- ---------------------------------------------------------------------------------
COMMON STOCK (95.6%)
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS (2.6%)
366,100 Jones Apparel Group, Inc.* $ 10,525,375
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(continued)
239,900 Tommy Hilfiger Corp.* $ 6,762,181
--------------
17,287,556
--------------
AUTO PARTS & EQUIPMENT (0.5%)
128,500 Dura Automotive Systems, Inc.* 3,092,031
--------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (0.5%)
268,800 Sonic Automotive, Inc.* 3,494,400
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING (0.8%)
263,700 CSK Auto Corp.* 5,751,956
--------------
BUSINESS SERVICES (14.1%)
161,600 Acxiom Corp.* 3,176,458
278,100 Avant! Corp.* 4,962,361
162,700 Aware, Inc.* 4,667,456
349,000 Azurix Corp.* 5,998,437
155,600 BEA Systems, Inc.* 5,494,625
170,500 Citrix Systems, Inc.* 10,560,344
1,019,800 Informix Corp.* 8,094,662
31,700 Internap Network Services Corp.* 1,414,612
73,700 National Computer Systems, Inc. 2,825,938
75,600 NCO Group, Inc.* 3,553,200
130,500 NetZero, Inc.* 3,393,000
208,500 Progress Software Corp.* 6,541,687
293,264 Rent-Way, Inc.* 5,572,016
272,100 Sykes Enterprises, Inc.* 6,717,469
197,900 Synopsys, Inc.* 11,113,332
24,900 THQ, Inc.* 1,073,813
311,000 USWeb Corp.* 10,671,188
--------------
95,830,598
--------------
CHEMICALS & ALLIED PRODUCTS (12.6%)
131,800 Abgenix, Inc.* 5,164,912
265,000 Alkermes, Inc.* 7,635,312
203,400 Barr Laboratories, Inc.* 6,457,950
145,200 Biovail Corp. International* 7,368,900
89,400 Centocor, Inc.* 5,235,488
304,800 COR Therapeutics, Inc.* 5,791,200
141,900 Genzyme Corp.* 6,394,369
174,100 Guilford Pharmaceuticals, Inc.* 2,655,025
422,100 IVAX Corp.* 6,964,650
93,500 Millennium Pharmaceuticals, Inc.* 6,077,500
367,200 Teva Pharmaceutical Industries Ltd. ADR 18,474,750
374,800 Triangle Pharmaceuticals, Inc.* 7,214,900
--------------
85,434,956
--------------
COMMUNICATIONS (2.7%)
90,000 AirGate PCS, Inc.* 2,238,750
42,000 Insight Communications Co., Inc.* 1,202,250
242,800 ITC DeltaCom, Inc.* 6,677,000
241,200 Rhythms NetConnections, Inc.* 8,321,400
--------------
18,439,400
--------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
99
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
DEPOSITORY INSTITUTIONS (5.6%)
285,800 Bank United Corp. $ 9,252,775
219,700 Golden State Bancorp, Inc.* 3,940,869
260,200 Riggs National Corp. 4,390,875
650,500 Roslyn Bancorp, Inc. 11,627,687
244,900 UnionBanCal Corp. 8,877,625
--------------
38,089,831
--------------
EATING & DRINKING PLACES (3.8%)
446,700 Buffets, Inc.* 5,192,888
166,000 Cheesecake Factory, Inc.* 4,606,500
465,800 Foodmaker, Inc.* 11,615,887
104,100 Papa John's International, Inc.* 4,294,125
--------------
25,709,400
--------------
EDUCATIONAL SERVICES (0.7%)
262,300 Education Management Corp.* 3,245,963
73,000 Sylvan Learning Systems, Inc.* 1,414,375
--------------
4,660,338
--------------
ELECTRIC, GAS & SANITARY SERVICES (0.9%)
320,300 Independent Energy Holdings ADR* 6,145,756
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(4.7%)
223,700 Advanced Fibre Communications, Inc.* 4,977,325
212,900 Artesyn Technologies, Inc.* 4,038,458
169,800 Atmel Corp.* 5,741,362
196,000 DII Group, Inc.* 6,896,750
285,600 Mattson Technology, Inc.* 3,409,350
303,900 SLI, Inc.* 6,476,869
--------------
31,540,114
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (3.6%)
537,600 ACNielson Corp.* 12,196,800
135,000 Cephalon, Inc.* 2,425,788
132,000 Unitedglobalcom, Inc.* 9,454,500
--------------
24,077,088
--------------
FOOD & KINDRED PRODUCTS (1.9%)
227,400 American Italian Pasta Co.* 6,509,325
438,600 Del Monte Foods Co.* 6,195,225
--------------
12,704,550
--------------
GENERAL MERCHANDISE STORES (0.4%)
328,600 Venator Group, Inc.* 2,813,638
--------------
HEALTH SERVICES (2.2%)
268,300 Lincare Holdings, Inc.* 7,151,885
250,200 Renal Care Group, Inc.* 5,480,956
93,100 Sunrise Assisted Living, Inc.* 2,472,969
--------------
15,105,810
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.5%)
357,300 Musicland Stores Corp.* 3,126,375
--------------
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (3.6%)
123,300 Cybex Computer Products Corp.* $ 4,115,138
159,600 Electroglas, Inc.* 3,730,650
416,200 Pentair, Inc. 16,700,025
--------------
24,545,813
--------------
INSURANCE CARRIERS (4.1%)
274,700 Annuity and Life Re (Holdings) Ltd. 6,833,162
202,000 Everest Reinsurance Holdings, Inc. 4,810,125
481,400 Oxford Health Plans, Inc.* 6,017,500
235,800 Radian Group, Inc. 10,124,663
--------------
27,785,450
--------------
LEATHER & LEATHER PRODUCTS (0.5%)
197,500 Brown Shoe Co., Inc. 3,616,719
--------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.4%)
189,700 Louisiana-Pacific Corp. 2,964,063
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS (2.3%)
171,500 Cymer, Inc.* 5,948,906
84,600 Orbotech Ltd.* 5,234,625
161,600 Veeco Instruments, Inc.* 4,524,800
--------------
15,708,331
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.5%)
169,900 Yankee Candle Co., Inc.* 3,281,194
--------------
MISCELLANEOUS RETAIL (0.5%)
532,700 OfficeMax, Inc.* 3,096,319
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (3.5%)
255,300 CNF Transportation, Inc. 9,509,925
346,675 Swift Transportation, Inc.* 6,825,164
155,600 USFreightways Corp. 7,371,550
--------------
23,706,639
--------------
NONDEPOSITORY CREDIT INSTITUTIONS (1.7%)
125,900 American Capital Strategies Ltd. 2,329,150
318,800 Heller Financial, Inc. 7,173,000
262,400 Resource America, Inc. 1,951,600
--------------
11,453,750
--------------
OIL & GAS EXTRACTION (5.8%)
200,000 Devon Energy Corp. 8,287,500
526,900 EOG Resources, Inc. 11,196,625
328,800 Sante Fe Snyder Corp.* 2,959,200
224,000 Spinnaker Exploration Co.* 2,912,000
346,000 Tidewater, Inc. 8,823,000
270,400 Veritas DGC, Inc.* 5,205,200
--------------
39,383,525
--------------
PERSONAL SERVICES (0.7%)
231,500 Regis Corp. 4,456,375
--------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
100
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
PRINTING, PUBLISHING & ALLIED INDUSTRIES (2.2%)
142,300 Houghton Mifflin Co. $ 5,780,937
208,850 Valassis Communications, Inc.* 9,176,347
--------------
14,957,284
--------------
REAL ESTATE (2.8%)
547,600 Intrawest Corp. 9,069,625
395,000 Newhall Land & Farming Co. 9,726,875
--------------
18,796,500
--------------
TRANSPORTATION BY AIR (0.7%)
215,800 SkyWest, Inc. 4,734,113
--------------
TRANSPORTATION EQUIPMENT (0.5%)
174,900 Heico Corp. 3,366,825
--------------
WATER TRANSPORTATION (0.4%)
100,500 Sea Containers Ltd. 2,814,000
--------------
WHOLESALE TRADE-DURABLE GOODS (5.2%)
103,000 Cytyc Corp.* 3,984,812
196,400 Patterson Dental Co.* 9,734,075
351,000 Sybron International Corp.* 9,433,125
619,400 Tower Automotive, Inc.* 12,271,863
--------------
35,423,875
--------------
WHOLESALE TRADE-NONDURABLE GOODS (2.1%)
103,500 Barrett Resources Corp.* 3,823,031
255,200 Burlington Coat Factory Warehouse 5,040,200
400,200 Handleman Co.* 5,302,650
--------------
14,165,881
--------------
TOTAL COMMON STOCK (COST $586,389,111) 647,560,453
--------------
REPURCHASE AGREEMENTS (4.4%)
29,491,143 Deutsche Bank, 5.48%, 10/1/99 (cost
$29,491,143)** 29,491,143
--------------
TOTAL INVESTMENTS (100.0%) (COST $615,880,254) $ 677,051,596
==============
- ---------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
- ---------------------------------------------------------------------------------
COMMON STOCK (94.7%)
ARGENTINA (0.4%)
130,000 Telefonica de Argentina SA ADR $ 3,428,750
--------------
AUSTRALIA (0.4%)
240,000 Lend Lease Corp. Ltd. 2,929,139
--------------
AUSTRIA (0.5%)
118,000 Brambles Industries Ltd. 3,416,924
83,000 Broken Hill Proprietary Co. Ltd. 956,064
--------------
4,372,988
--------------
BELGIUM (0.3%)
51,000 KBC Bancassurance Holding 2,593,516
--------------
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
BRAZIL (0.3%)
35,000 Telecomunicacoes Brasileiras SA ADR $ 2,622,813
--------------
CANADA (1.2%)
327,160 Abitibi-Consolidated, Inc. 3,929,514
136,910 Bank of Nova Scotia 2,934,808
122,520 Canadian Pacific* 2,801,432
--------------
9,665,754
--------------
DENMARK (0.8%)
59,200 Den Danske Bank Group 6,742,671
--------------
FINLAND (0.6%)
55,730 Nokia Oyj 4,991,493
--------------
FRANCE (12.5%)
18,980 Accor SA 4,424,736
65,130 AGF (Assurances Generales de France) 3,565,247
33,990 Alcatel 4,684,150
53,770 Axa SA 6,803,022
93,420 Canal Plus 5,581,464
16,110 Cap Gemini SA 2,539,234
94,743 Elf Aquitaine SA 16,547,652
34,310 Groupe Danone 8,349,343
168,120 Sanofi-Synthelabo SA* 7,161,842
155,500 STMicroelectronics NV 12,122,351
60,160 Suez Lyonnaise des Eaux 9,738,606
53,420 Total SA, B Shares 6,713,226
172,774 Vivendi 12,134,966
--------------
100,365,839
--------------
GERMANY (8.3%)
128,520 BASF AG 5,474,899
135,618 DaimlerChrysler AG 9,344,735
151,500 Deutsche Bank AG 10,140,592
106,230 HypoVereinsbank 6,244,989
11,120 Karstadt AG* 5,021,298
112,910 Mannesmann AG 18,037,197
156,010 RWE AG 6,471,505
42,580 Siemens AG 3,469,065
110,010 Thyssen Krupp AG* 2,208,457
--------------
66,412,737
--------------
HONG KONG (1.0%)
860,000 Hutchison Whampoa Ltd. 7,999,291
--------------
INDONESIA (0.1%)
1,956,420 PT Telekomunikasi Indonesia 690,797
--------------
IRELAND (1.9%)
706,920 Bank of Ireland 5,759,398
281,640 Elan Corp. plc ADR* 9,452,543
--------------
15,211,941
--------------
ITALY (2.7%)
1,136,430 ENI SpA 7,128,586
897,448 Olivetti SpA* 1,935,440
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
101
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
ITALY (continued)
228,830 San Paolo-IMI SpA $ 2,973,159
741,619 Tecnost SpA* 1,555,939
1,256,180 Telecom Italia Mobile SpA 7,812,861
--------------
21,405,985
--------------
JAPAN (20.8%)
336,000 Amada Metrecs Co. Ltd. 2,004,006
293,000 Bridgestone Corp. 8,201,058
182,650 Credit Saison Co. Ltd. 4,254,586
239,000 Dai-Dan Co. Ltd. 1,930,556
1,122,000 Dai-Tokyo Fire & Marine Insurance Co. 4,110,015
319,000 Daiwa House Industry Co. Ltd. 3,155,041
1,128 East Japan Railway Co. 7,183,313
237,000 Fuji Photo Film Co. 8,125,072
667,000 Hanshin Electric Railway Co. Ltd. 2,205,233
520,000 Hitachi Ltd. 5,763,301
564,000 Kuraray Co. Ltd. 6,611,190
294,000 Matsushita Electric Industrial Co. Ltd. 6,254,628
1,363,000 Mitsui & Co. Ltd. 10,318,507
101,000 Murata Manufacturing Co. Ltd. 10,150,586
165,000 Nippon Express Co. Ltd. 1,106,543
683 Nippon Telegraph & Telephone Corp. 8,403,844
260,000 Nomura Securities Co. 4,029,427
505 NTT Mobile Communications Network, Inc. 9,960,856
263,000 Omron Corp. 5,199,886
74,200 Promise Co. Ltd. 5,972,700
147,000 Sekisui House 1,659,617
337,000 Showa Shell Sekiyu 2,152,409
31,300 SMC Corp. 4,409,827
64,200 Sony Corp. 9,593,812
270,000 Sumitomo Electric Industries 3,702,564
5,453,000 Sumitomo Metal Industries Ltd.* 6,146,144
213,000 Takeda Chemical Industries 11,503,591
681,000 Toppan Printing Co. Ltd. 8,571,127
62,000 Toyota Motor Corp. 1,974,137
419,000 Yasuda Fire & Marine Insurance Co. Ltd. 2,672,205
--------------
167,325,781
--------------
KOREA, REPUBLIC OF (0.7%)
120,000 Kookmin Bank 1,504,361
67,000 Korea Telecom Corp. ADR* 2,479,000
12,300 Samsung Electronics Co. 1,991,922
--------------
5,975,283
--------------
MEXICO (1.3%)
96,760 Grupo Televisa SA* 3,864,353
95,080 Telefonos de Mexico SA ADR 6,774,450
--------------
10,638,803
--------------
NETHERLANDS (5.6%)
265,073 Internationale Nederlanden Group NV 14,397,360
230,590 Royal Dutch Petroleum Co. 13,383,890
368,845 TNT Post Group NV 9,388,305
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
NETHERLANDS (continued)
125,620 United Pan-Europe Communications NV* $ 7,759,472
--------------
44,929,027
--------------
NEW ZEALAND (0.9%)
2,036,500 Carter Holt Harvey Ltd. 2,450,414
1,221,100 Telecom Corp of New Zealand Ltd. 4,811,437
--------------
7,261,851
--------------
PHILIPPINES (1.1%)
8,848,300 Ayala Land, Inc. 2,163,463
1,466,500 Manila Electric Company "B" Shares 4,231,104
123,000 Philippine Long Distance Telephone Co. 2,661,571
--------------
9,056,138
--------------
PORTUGAL (1.1%)
345,590 Electricidade de Portugal SA 5,454,498
177,750 Semapa - Sociedade de Investimento e
Gestao SGPS SA 3,225,704
--------------
8,680,202
--------------
SINGAPORE (1.4%)
326,000 City Developments Ltd. 1,658,309
266,560 DBS Group Holdings Ltd.* 2,978,376
620,000 DBS Land Ltd. 1,152,154
215,828 Singapore Press Holdings Ltd. 3,401,529
246,000 United Overseas Bank Ltd. 1,866,193
--------------
11,056,561
--------------
SPAIN (1.8%)
28,000 Bankinter SA 1,097,365
382,115 Endesa SA 7,259,962
359,305 Telefonica SA* 5,751,315
--------------
14,108,642
--------------
SWEDEN (2.5%)
27,730 Electrolux AB Series B 517,542
175,410 Securitas AB 2,631,867
548,960 Telefonaktiebolaget LM Ericsson
"B" Shares 17,009,006
--------------
20,158,415
--------------
SWITZERLAND (4.4%)
57,837 ABB Ltd.* 5,974,222
5,879 Novartis AG-Registered Shares 8,721,082
766 Roche Holding AG 8,864,318
40,872 UBS AG 11,521,473
--------------
35,081,095
--------------
TAIWAN (1.0%)
127,140 Asustek Computer, Inc.+ 1,690,962
111,600 China Steel Corporation GDR 2,223,630
150,263 Taiwan Semiconductor Manufacturing Co.* 4,432,759
--------------
8,347,351
--------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
102
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
THAILAND (0.4%)
949,000 Bangkok Bank Public Co. Ltd.* $ 1,866,750
179,000 Electricity Generating Public Co. Ltd. 244,943
99,000 PTT Exploration and Production Public Co.
Ltd.* 691,871
370,000 Siam Commercial Bank Public Co. Ltd.* 305,141
--------------
3,108,705
--------------
UNITED KINGDOM (20.7%)
221,120 Abbey National plc 3,925,672
1,098,290 Airtours plc 6,999,955
506,800 Allied Zurich plc 5,951,047
366,550 ARM Holdings plc* 5,719,784
768,340 Blue Circle Industries plc 4,577,509
307,160 BP Amoco plc 5,610,007
860,480 British Airways plc 4,832,395
426,802 British Energy plc 2,895,948
716,610 British Land Company plc 5,594,077
861,000 British Sky Broadcasting Group plc* 8,330,638
444,370 British Telecommunications plc 6,729,204
574,040 Cable & Wireless plc 6,249,005
1,363,140 David S. Smith Holdings plc 3,569,479
1,092,020 Electrocomponents plc 9,288,982
252,110 Future Network plc* 2,624,064
194,745 Glaxo Wellcome plc 5,080,292
972,981 Imperial Chemical Industries plc 10,792,180
1,227,886 Kingfisher plc 13,164,557
2,495,530 LASMO plc* 5,805,217
1,019,000 Legal & General Group plc 2,890,684
858,240 Lloyds TSB Group plc 10,671,438
94,690 Marks & Spencer plc 492,006
209,530 Pearson plc 4,496,327
217,230 Rio Tinto plc 3,767,171
26,900 RMC Group plc 415,549
2,390,309 Rolls-Royce plc 8,296,384
252,770 Shell Transport & Trading Co. plc 1,889,942
461,682 Vodafone AirTouch plc 10,933,747
873,171 Williams plc 4,648,417
--------------
166,241,677
--------------
TOTAL COMMON STOCK (COST $663,266,459) 761,403,245
--------------
PREFERRED STOCK
THAILAND (0.2%)
2,173,500 Siam Commercial Bank Public Co. Ltd.*
(Cost $2,895,183) 1,951,826
--------------
SHORT-TERM INVESTMENTS (2.0%)
6,062,348 Business Class Plus 6,062,348
10,203,942 Norwest Treasury Fund 10,203,942
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $16,266,290) 16,266,290
--------------
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
TIME DEPOSIT (3.1%)
23,200,000 Euro Dollar Time Deposit (cost
$24,529,498) $ 24,707,760
--------------
TOTAL INVESTMENTS (100.0%) (COST $706,957,430) $ 804,329,121
==============
</TABLE>
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
<TABLE>
<CAPTION>
EXPIRATION UNDERLYING FACE UNREALIZED
DATE CURRENCY UNITS AMOUNT OF VALUE DEPRECIATION
- --------------------- ------------ ------------- --------------- ------------
<C> <S> <C> <C> <C>
10/28/99 Japanese Yen 2,660,922,000 $23,624,814 $(1,457,036)
2/18/00 Japanese Yen 3,616,833,000 32,162,491 (2,555,488)
-----------
(4,012,524)
</TABLE>
<TABLE>
<C> <S> <C>
- ---------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- ---------------------------------------------------------------------------------
COMMON STOCK (95.1%)
AUSTRALIA (1.8%)
375,000 News Corp. Ltd. $ 2,631,385
--------------
BRAZIL (1.0%)
75,000 Aracruz Celulose SA ADR 1,565,625
--------------
FINLAND (1.6%)
27,000 Nokia Corp. ADR 2,424,937
--------------
FRANCE (14.6%)
25,000 Axa SA 3,163,019
38,000 Canal Plus 2,270,346
14,200 Cap Gemini SA 2,238,182
19,000 Equant NV-NY Registered Shares*# 1,546,124
8,000 Groupe Danone 1,946,801
69,000 STMicroelectronics NV 5,379,050
17,000 Suez Lyonnaise des Eaux# 2,751,933
19,000 Total SA, B Shares 2,387,708
--------------
21,683,163
--------------
GERMANY (5.7%)
7,500 Allianz AG-Registered 2,161,397
51,111 Deutsche Bank AG-Registered 3,421,094
28,000 Metro AG 1,458,184
27,000 Veba AG 1,479,430
--------------
8,520,105
--------------
GREECE (0.9%)
60,000 Hellenic Telecommunication Organization
SA 1,400,276
--------------
HONG KONG (1.9%)
220,000 Cheung Kong (Holdings) Ltd. 1,833,909
90,000 HSBC Holdings plc 1,031,211
--------------
2,865,120
--------------
HUNGARY (1.6%)
430,000 Magyar Tavkozlesi RT 2,356,722
--------------
IRELAND (1.6%)
52,000 Ryanair Holdings plc ADR* 2,385,500
--------------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
103
<PAGE>
SCHEDULES OF INVESTMENTS (CONCLUDED) SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
ISRAEL (0.8%)
67,000 Koor Industries Ltd. ADR $ 1,168,313
--------------
ITALY (3.5%)
230,000 ENI SpA 1,442,742
150,000 San Paolo-IMI SpA# 1,948,931
210,000 Telecom Italia SpA 1,824,966
--------------
5,216,639
--------------
JAPAN (20.8%)
98,000 Fujitsu Ltd. 3,055,978
65,000 Honda Motor Co. Ltd. 2,722,916
100,000 Marui Co. Ltd. 1,867,250
240 Nippon Telegraph & Telephone Corp. 2,953,034
36,000 Secom Co. Ltd.# 3,212,270
45,000 Seven-Eleven Japan Co. Ltd. 3,951,938
2,000 Shohkoh Fund & Co. Ltd. 1,493,424
3,800 Softbank Corp. 1,445,522
23,000 Sony Corp. 3,437,035
50,000 Takeda Chemical Industries 2,700,373
24,500 Takefuji Corp. 4,080,006
--------------
30,919,746
--------------
KOREA, REPUBLIC OF SOUTH (1.0%)
40,000 Korea Telecom Corp. ADR*# 1,480,000
--------------
MEXICO (2.0%)
650,000 Grupo Elektra SA de CV-CPO 306,006
750,000 Telefonos de Mexico SA de CV Series L 2,684,238
--------------
2,990,244
--------------
NETHERLANDS (7.1%)
43,000 Koninklijke Ahold NV 1,415,052
23,000 Koninklijke Philips Electronics NV 2,314,755
31,500 Royal Dutch Petroleum Co. - NY Registered
Shares 1,860,469
40,000 Unilever NV-CVA 2,722,114
36,000 United Pan-Europe Communications NV* 2,223,698
--------------
10,536,088
--------------
NEW ZEALAND (0.2%)
160,000 Tranz Rail Holdings Ltd. 275,972
--------------
NORWAY (1.3%)
100,000 Petroleum Geo-Services ASA* 1,876,872
--------------
SINGAPORE (3.5%)
300,000 DBS Group Holdings Ltd.* 3,352,019
115,000 Singapore Press Holdings Ltd. 1,812,443
--------------
5,164,462
--------------
SPAIN (3.5%)
140,000 Banco Santander Central Hispano SA 1,447,747
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO (continued)
- ---------------------------------------------------------------------------------
COMMON STOCK (continued)
SPAIN (continued)
55,000 Superdiplo SA* $ 1,128,729
160,000 Telefonica SA 2,561,087
--------------
5,137,563
--------------
SWEDEN (1.7%)
80,000 Telfonaktiebolaget LM Ericsson, Series B
ADR 2,500,000
--------------
SWITZERLAND (2.8%)
700 Nestle SA-Registerd Shares 1,315,494
1,900 Novartis AG-Registered Shares 2,818,516
--------------
4,134,010
--------------
TAIWAN (0.4%)
25,950 ASE Test Ltd.* 629,288
--------------
UNITED KINGDOM (15.8%)
310,000 Amvescap plc 2,529,721
63,000 ARM Holdings plc ADR* 2,961,000
150,000 BP Amoco plc 2,739,618
128,000 British Telecommunications plc 1,938,335
25,000 Glaxo Wellcome plc ADR 1,300,000
420,000 Invensys plc 2,047,426
200,000 Select Appointments Holdings plc* 3,382,897
25,000 SmithKline Beecham plc ADR 1,440,625
400,000 TeleWest Communications plc* 1,465,741
155,000 Vodafone AirTouch plc 3,670,775
--------------
23,476,138
--------------
TOTAL COMMON STOCK (COST $122,810,493) 141,338,168
--------------
PREFERRED STOCK (2.3%)
BRAZIL (1.1%)
18,000,000 Telecomunicacoes de Sao Paulo SA 1,612,524
--------------
GERMANY (1.2%)
4,000 SAP AG 1,793,443
--------------
TOTAL PREFERRED STOCK (COST $3,459,811) 3,405,967
--------------
MUTUAL FUND (1.1%)
113,000 World Equity Benchmark Share (W.E.B.S.)-
Japan Index Series Fund# (cost
$1,537,930) 1,574,938
--------------
REPURCHASE AGREEMENTS (1.5%)
2,253,221 Deutsche Bank, 5.48%, 10/1/99 (cost
$2,253,221)** 2,253,221
--------------
TOTAL INVESTMENTS (100.0%) (COST $130,061,455) $ 148,572,294
==============
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
CORE TRUST (DELAWARE)
104
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
* Non-income producing security.
+ Security that may be resold to "qualified institutional buyers" under rule
144A or offered pursuant to 4(2) of the Securities Act of 1933, as amended.
This security has been determined to be liquid pursuant to procedures adopted
by the Board of Trustees.
# Part or all of this investment is on loan. See Note 6 of Notes to Financial
Statements.
** The Portfolios have invested in a joint repurchase agreement. The following
represents the collateral on the Deutsche Bank joint repurchase agreement:
U.S. Government Agency Securities, 5.00% - 9.00%, 5/15/16 - 12/15/28; with a
total market value of $507,053,673.
++ As of September 30, 1999, $2,410,000 of U.S. Treasury Bills, 12/17/99, with
a market value of $2,343,821 were pledged to cover margin requirements for
open futures contracts.
## As of September 30, 1999, $885,000 of U.S. Treasury Bills, 12/17/99, with a
market value of $860,851 were pledged to cover margin requirements for open
futures contracts.
ABBREVIATIONS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ADR American Depository Receipts
GDR Global Depository Receipt
V/R Variable Rate - These securities are deemed to
have a maturity remaining until the next
adjustment of the interest rate or the longer of
the demand period or readjustment. The interest
rates shown reflect the rate in effect on
September 30, 1999.
</TABLE>
See Notes to Financial Statements. CORE TRUST (DELAWARE)
105
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
Norwest Advantage Funds
Sixth & Marquette
MAC N9305-109
Minneapolis, MN 55479
Shareholder 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
- -Copyright-1999 NORWEST ADVANTAGE FUNDS
NW AR (11/99)
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.
[logo]NORWEST
----------------------------
ADVANTAGE FUNDS-Registered Trademark-
