<PAGE>
CHIEF INVESTMENT OFFICER'S MARKET OVERVIEW LETTER
EXECUTIVE INVESTORS TRUST
BLUE CHIP FUND
HIGH YIELD FUND
INSURED TAX EXEMPT FUND
Dear Investor:
We are pleased to present the semi-annual report for the funds of Executive
Investors Trust for the six months ended June 30, 1998. Although both the bond
and stock markets suffered setbacks at times during the first six months of the
year, the combination of moderate growth, low inflation, and respectable
corporate earnings reports helped provide a positive environment for investors
in most types of funds.
The U.S. economy remained strong for the first half of 1998, with sustained,
moderate growth and low levels of inflation and unemployment. Inflation remained
low, as the Consumer Price Index rose just 1.7% for the twelve months ended June
30. The unemployment rate continued to be low, at 4.5% as of June 30, 1998.
Consumer confidence remained high, encouraged by the robust domestic economy and
rising income levels.
In general, our long-term outlook for the financial markets continues to be
positive. The economy appears to be growing moderately, inflation remains
subdued and the Federal Reserve appears unlikely to tolerate unsustainably fast
economic growth. In regard to the stock market, we are encouraged by the
underlying fundamentals of the U.S. economy. However, we are cautioned by a
number of situations, including the struggles in Asia. We are concerned about
the effect this region's difficulties may have on U.S. growth and corporate
earnings. We are also concerned about the relative lack of pricing power and the
prospects that the lofty level of gains posted year-to-date can continue into
the second half of 1998.
With regard to the bond market, interest rates continue to remain in a tight
range; we believe the Federal Reserve is likely to maintain current interest
rates. Continued weak Asian markets, low inflation in the U.S. and the Federal
budget surplus should support an environment of low interest rates and high bond
prices. However, the continued strength of the U.S. economy could result in
higher interest rates and inflation, notwithstanding Asia. In this event, bond
fund values would decline.
Thank you for your continued confidence in Executive Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
[SIGNATURE]
Clark D. Wagner
Chief Investment Officer
Executive Investors Management Company, Inc.
July 31, 1998
1
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
June 30, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--96.3%
BASIC MATERIALS--2.7%
400 Allegheny Teledyne, Inc. $ 9,150 $ 20
800 *Bethlehem Steel Corporation 9,950 22
500 Bowater, Inc. 23,625 52
600 Du Pont (E.I.) de Nemours & Company 44,775 99
400 Ecolab, Inc. 12,400 27
400 Monsanto Company 22,350 49
- ----------------------------------------------------------------------------------
122,250 269
- ----------------------------------------------------------------------------------
CAPITAL GOODS--9.3%
600 AMP, Inc. 20,625 45
600 Avery Dennison Corporation 32,250 71
300 Corning, Inc. 10,425 23
200 Emerson Electric Company 12,075 27
1,500 General Electric Company 136,500 301
950 Ingersoll-Rand Company 41,859 92
200 Minnesota Mining and Manufacturing Company 16,437 36
400 Pitney-Bowes, Inc. 19,250 42
400 Textron, Inc. 28,675 63
600 Tyco International, Ltd. 37,800 83
200 United Technologies Corporation 18,500 41
1,000 *Waste Management, Inc. 49,375 109
- ----------------------------------------------------------------------------------
423,771 933
- ----------------------------------------------------------------------------------
COMMUNICATION SERVICES--4.9%
1,100 *AirTouch Communications, Inc. 64,281 142
600 Bell Atlantic Corporation 27,375 60
200 Century Telephone Enterprises, Inc. 9,175 20
400 GTE Corporation 22,250 49
200 MCI Communications Corporation 11,625 26
932 *Qwest Communications International, Inc. 32,503 72
800 SBC Communications, Inc. 32,000 71
500 *WorldCom, Inc. 24,219 53
- ----------------------------------------------------------------------------------
223,428 493
- ----------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER CYCLICALS--9.8%
400 *CompUSA, Inc. $ 7,225 $ 16
700 *Costco Companies, Inc. 44,144 97
300 Federal-Mogul Corporation 20,250 45
500 *Federated Department Stores, Inc. 26,906 59
600 Hilton Hotels Corporation 17,100 38
300 Home Depot, Inc. 24,919 55
900 *Lear Corporation 46,181 102
600 Masco Corporation 36,300 80
600 Mattel, Inc. 25,387 56
500 McGraw-Hill Companies, Inc. 40,781 90
600 New York Times Company - Class "A" 47,550 105
600 Ogden Corporation 16,612 37
600 Omnicom Group, Inc. 29,925 66
1,000 Wal-Mart Stores, Inc. 60,750 134
- ----------------------------------------------------------------------------------
444,030 980
- ----------------------------------------------------------------------------------
CONSUMER STAPLES--13.7%
800 Anheuser-Busch Companies, Inc. 37,750 83
1,000 *Apollo Group, Inc. 33,062 73
600 Bestfoods 34,837 77
500 *Chancelor Media Corporation 24,828 55
600 Coca-Cola Company 51,300 113
300 Comcast Corporation - Special Class "A" 12,178 27
400 Fort James Corporation 17,800 39
900 General Mills, Inc. 61,537 136
1,000 *Host Marriott Corporation 17,812 39
300 Kimberly-Clark Corporation 13,762 30
700 *Outback Steakhouse, Inc. 27,300 60
600 Procter & Gamble Company 54,637 120
700 Rite Aid Corporation 26,294 58
300 Rubbermaid, Inc. 9,956 22
426 *Safeway, Inc. 17,333 38
600 Sara Lee Corporation 33,562 74
450 *Tele-Communications, Inc. Liberty Media Group -
Series "A" 17,466 38
- ----------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
June 30, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
600 Time Warner, Inc. $ 51,263 $ 113
400 Unilever, N.V. 31,575 70
600 *USA Networks, Inc. 15,075 33
300 Walt Disney Company 31,519 69
- ----------------------------------------------------------------------------------
620,846 1,367
- ----------------------------------------------------------------------------------
ENERGY--7.0%
550 Amoco Corporation 22,894 50
400 Chevron Corporation 33,225 73
700 ENSCO International, Inc. 12,163 27
1,300 Exxon Corporation 92,706 204
200 Kerr-McGee Corporation 11,575 26
500 Mobil Corporation 38,313 84
1,000 Royal Dutch Petroleum Company 54,813 121
100 Schlumberger, Ltd. 6,831 15
300 Texaco, Inc. 17,906 39
900 Tosco Corporation 26,438 58
- ----------------------------------------------------------------------------------
316,864 697
- ----------------------------------------------------------------------------------
FINANCIAL--17.4%
400 Allstate Corporation 36,625 81
200 American Express Company 22,800 50
325 American International Group, Inc. 47,450 105
300 Banc One Corporation 16,744 37
300 Bank of New York Company, Inc. 18,206 40
300 BankAmerica Corporation 25,931 57
1,000 BankBoston Corporation 55,625 123
800 Chase Manhattan Corporation 60,400 133
300 Citicorp 44,775 99
700 Conseco, Inc. 32,725 72
600 Fannie Mae 36,450 80
400 Fifth Third Bancorp 25,200 56
200 First Chicago NBD Corporation 17,725 39
800 First Union Corporation 46,600 103
- ----------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL (continued)
700 Freddie Mac $ 32,944 $ 73
300 Golden West Financial Corporation 31,894 70
450 Jefferson-Pilot Corporation 26,072 57
400 Merrill Lynch & Company, Inc. 36,900 81
300 Morgan Stanley, Dean Witter, Discover and Company 27,413 60
300 NationsBank Corporation 22,950 51
1,400 Norwest Corporation 52,325 115
500 TIG Holdings, Inc. 11,500 25
700 Travelers Group, Inc. 42,438 94
200 Wachovia Corporation 16,900 37
- ----------------------------------------------------------------------------------
788,592 1,738
- ----------------------------------------------------------------------------------
HEALTHCARE--11.2%
800 Abbott Laboratories 32,700 72
600 American Home Products Corporation 31,050 68
300 Baxter International, Inc. 16,144 36
400 Bristol-Myers Squibb Company 45,975 101
300 *Genentech, Inc. 20,363 45
500 *Health Management Associates, Inc. - Class "A" 16,719 37
800 *Healthsouth Corporation 21,350 47
600 Johnson & Johnson 44,250 98
500 Medtronic, Inc. 31,875 70
700 Merck & Company, Inc. 93,625 206
400 Pfizer, Inc. 43,475 96
300 *Tenet Healthcare Corporation 9,375 21
1,000 *Total Renal Care Holdings, Inc. 34,500 76
400 United Healthcare Corporation 25,400 56
600 Warner-Lambert Company 41,625 92
- ----------------------------------------------------------------------------------
508,426 1,121
- ----------------------------------------------------------------------------------
TECHNOLOGY--16.6%
800 Advanced-Micro Devices, Inc. 13,650 30
700 *Altera Corporation 20,694 46
200 *ASM Lithography Holding, N.V. 5,813 13
- ----------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
June 30, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY (continued)
300 *Bay Networks, Inc. $ 9,675 $ 21
1,100 *Cadence Design Systems, Inc. 34,375 76
400 *Cisco Systems, Inc. 36,825 81
1,400 Comdisco, Inc. 26,600 59
1,000 Compaq Computer Corporation 28,375 63
200 *Dell Computer Corporation 18,563 41
2,100 First Data Corporation 69,956 154
700 *Fore Systems, Inc. 18,550 41
400 Grainger (W.W.), Inc. 19,925 44
800 HBO & Company 28,200 62
700 Intel Corporation 51,888 114
500 International Business Machines Corporation 57,406 126
1,200 Lucent Technologies, Inc. 99,825 220
500 *Microsoft Corporation 54,188 119
400 Northern Telecom, Ltd. 22,700 50
200 Raytheon Company - Class "B" 11,825 26
700 *Seagate Technology, Inc. 16,669 37
800 *Sterling Commerce, Inc. 38,800 85
400 *Tellabs, Inc. 28,650 63
400 Xerox Corporation 40,650 90
- ----------------------------------------------------------------------------------
753,802 1,661
- ----------------------------------------------------------------------------------
UTILITIES--3.7%
400 *AES Corporation 21,025 46
400 Duke Energy Corporation 23,700 52
900 Enron Corporation 48,656 107
450 FPL Group, Inc. 28,350 62
1,400 Williams Companies, Inc. 47,250 104
- ----------------------------------------------------------------------------------
168,981 371
- ----------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $3,192,451) 96.3% 4,370,990 9,630
OTHER ASSETS, LESS LIABILITIES 3.7 168,055 370
- ----------------------------------------------------------------------------------
NET ASSETS 100.0% $4,539,045 $10,000
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
6
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS HIGH YIELD FUND
June 30, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--90.7%
AEROSPACE/DEFENSE--.5%
$ 100M Moog, Inc., 10%, 2006 $ 108,649 $ 55
- ----------------------------------------------------------------------------------------
APPAREL/TEXTILES--3.7%
300M Pillowtex Corp., 10%, 2006 325,500 164
400M Polymer Group, Inc., 9%, 2007 405,000 204
- ----------------------------------------------------------------------------------------
730,500 368
- ----------------------------------------------------------------------------------------
AUTOMOTIVE--2.7%
300M Cambridge Industries, Inc., 10.25%, 2007 306,000 154
250M Cooperative Computing, Inc., 9%, 2008+ 227,500 115
- ----------------------------------------------------------------------------------------
533,500 269
- ----------------------------------------------------------------------------------------
BUILDING MATERIALS--1.8%
350M American Architectural Products Corp., 11.75%,
2007 360,500 182
- ----------------------------------------------------------------------------------------
CHEMICALS--2.2%
400M Huntsman Polymers Corp., 11.75%, 2004 438,000 221
- ----------------------------------------------------------------------------------------
CONSUMER PRODUCTS--5.3%
300M Commemorative Brands, Inc., 11%, 2007 304,125 154
200M Corning Consumer Products Co., 9.625%, 2008+ 199,000 100
300M Herff Jones, Inc., 11%, 2005 327,000 165
250M Syratech Corp., 11%, 2007 222,500 112
- ----------------------------------------------------------------------------------------
1,052,625 531
- ----------------------------------------------------------------------------------------
CONTAINERS/PACKAGING--6.4%
325M Plastic Containers, Inc., 10%, 2006 349,375 176
400M Radnor Holdings, Inc., 10%, 2003 418,000 211
500M Tekni-Plex, Inc., 9.25%, 2008 500,000 252
- ----------------------------------------------------------------------------------------
1,267,375 639
- ----------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS HIGH YIELD FUND
June 30, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
DURABLE GOODS MANUFACTURING--3.6%
$ 500M Columbus McKinnon Corp., 8.50%, 2008+ $ 496,250 $ 251
200M Fairfield Manufacturing, Inc., 11.375%, 2001 208,500 105
- ----------------------------------------------------------------------------------------
704,750 356
- ----------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.1%
200M Amphenol Corp., 9.875%, 2007 210,500 106
- ----------------------------------------------------------------------------------------
ENERGY--4.1%
400M Giant Industries, Inc., 9.75%, 2003 417,000 211
400M Stone Energy Corp., 8.75%, 2007 399,500 202
- ----------------------------------------------------------------------------------------
816,500 413
- ----------------------------------------------------------------------------------------
ENTERTAINMENT/LEISURE--1.0%
200M Outboard Marine Corp., 10.75%, 2008+ 202,000 102
- ----------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--3.8%
400M Fleming Companies, Inc., 10.50%, 2004 415,000 210
300M Van de Kamps, Inc., 12%, 2005 342,000 173
- ----------------------------------------------------------------------------------------
757,000 383
- ----------------------------------------------------------------------------------------
GAMING/LODGING--4.3%
250M Casino America, Inc., 12.50%, 2003 282,187 142
300M Empress Entertainment, Inc., 8.125%, 2006+ 300,750 152
250M Grand Casinos, Inc., 9%, 2004 272,500 138
- ----------------------------------------------------------------------------------------
855,437 432
- ----------------------------------------------------------------------------------------
HEALTHCARE--4.5%
200M Dade International, Inc., 11.125%, 2006 223,000 113
250M Fisher Scientific International, Inc., 9%, 2008 247,500 125
400M Integrated Health Services, Inc., 9.25%, 2008 416,000 210
- ----------------------------------------------------------------------------------------
886,500 448
- ----------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY/OFFICE EQUIPMENT--1.3%
250M General Binding Corp., 9.375%, 2008+ 253,750 128
- ----------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
MEDIA (CABLE TV/BROADCASTING)--7.8%
$ 500M Echostar Communications Corp., 0%-12.875%, 2004 $ 487,500 $ 246
300M Grupo Televisa, SA, 11.875%, 2006 334,500 169
300M Rogers Cablesystems, Inc., 10%, 2005 334,500 169
400M TCI Satellite Entertainment, Inc., 10.875%, 2007 399,000 201
- ----------------------------------------------------------------------------------------
1,555,500 785
- ----------------------------------------------------------------------------------------
MEDIA (OTHER)--4.3%
300M Garden State Newspapers, Inc., 12%, 2004 333,000 168
200M Garden State Newspapers, Inc., 8.75%, 2009 203,000 102
300M Outdoor Systems, Inc., 8.875%, 2007 311,250 157
- ----------------------------------------------------------------------------------------
847,250 427
- ----------------------------------------------------------------------------------------
MINING/METALS--7.1%
400M Euramax International PLC, 11.25%, 2006 432,000 218
250M WCI Steel, Inc., 10%, 2004 256,875 130
300M Wells Aluminum Corp., 10.125%, 2005 316,500 160
400M Wheeling-Pittsburgh Corp., 9.25%, 2007 408,000 206
- ----------------------------------------------------------------------------------------
1,413,375 714
- ----------------------------------------------------------------------------------------
MISCELLANEOUS--1.8%
350M Kindercare Learning Centers, Inc., 9.50%, 2009 358,312 181
- ----------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--3.8%
350M Riverwood International Corp., 10.25%, 2006 359,188 181
350M S.D. Warren Co., Inc., 12%, 2004 387,625 196
- ----------------------------------------------------------------------------------------
746,813 377
- ----------------------------------------------------------------------------------------
REAL ESTATE/CONSTRUCTION--1.8%
400M Cathay International, Ltd., 13%, 2008+ 348,000 176
- ----------------------------------------------------------------------------------------
RETAIL-FOOD/DRUG--1.3%
250M Stater Brothers Holdings, Inc., 9%, 2004 256,250 129
- ----------------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--1.6%
300M Big 5 Corp., 10.875%, 2007 313,500 158
- ----------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS HIGH YIELD FUND
June 30, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
PRINCIPAL INVESTED
AMOUNT, FOR EACH
SHARES $10,000 OF
OR WARRANTS SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
TELECOMMUNICATIONS--13.2%
$ 500M 21st Century Telecommunications Group, Inc.,
0%-12.25%, 2008+ $ 283,750 $ 143
500M Comcast Cellular Holdings, Inc., 9.50%, 2007 521,250 263
450M E Spire Communications, Inc., 0%-13%, 2005 374,625 189
400M McCaw International, Ltd., 0%-13%, 2007 266,500 135
250M Netia Holdings BV, 0%-11.25%, 2007 165,625 84
250M Netia Holdings BV, 10.25%, 2007 240,938 122
400M Powertel, Inc., 0%-12%, 2006 308,000 156
200M Qwest Communications International, Inc.,
0%-9.47%, 2007 150,000 76
500M RCN Corp., 0%-11%, 2008 299,375 151
- ----------------------------------------------------------------------------------------
2,610,063 1,319
- ----------------------------------------------------------------------------------------
TRANSPORTATION--1.7%
300M Moran Transportation Co., 11.75%, 2004 332,250 168
- ----------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $17,438,676) 17,958,899 9,067
- ----------------------------------------------------------------------------------------
COMMON STOCKS--.1%
MEDIA (CABLE TV/BROADCASTING)
1,000 *Echostar Communications Corp. - Class "A" (cost
$0) 24,062 12
- ----------------------------------------------------------------------------------------
PREFERRED STOCKS--2.3%
PAPER/FOREST PRODUCTS
9,000 S.D. Warren Co., Inc., 14%, Series "B" (cost
$249,750) 450,000 227
- ----------------------------------------------------------------------------------------
WARRANTS--.6%
GAMING/LODGING--.0%
200 *Goldriver Finance Corp., Liquidating Trust 200 --
- ----------------------------------------------------------------------------------------
MINING/METALS--.0%
200 *Gulf State Steel Acquistion Corp. (expiring
4/15/03)+ 2 --
- ----------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.2%
9,000 *S.D. Warren Co., Inc. (expiring 12/15/06)+ 45,000 23
- ----------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
WARRANTS, AMOUNT
UNITS INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
TELECOMMUNICATIONS--.4%
450 *E Spire Communications, Inc. (expiring 11/1/05)+ $ 69,750 $ 35
400 *McCaw International, Ltd. (expiring 4/15/07)+ 2,000 1
- ----------------------------------------------------------------------------------------
71,750 36
- ----------------------------------------------------------------------------------------
TOTAL VALUE OF WARRANTS (cost $0) 116,952 59
- ----------------------------------------------------------------------------------------
UNITS--1.2%
MEDIA (CABLE TV/BROADCASTING)
500 Diva Systems Corp. (cost $269,140)(a)+ 232,500 117
- ----------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--2.7%
$ 500M United States Treasury Note, 7%, 2006 (cost
$534,874) 546,406 276
- ----------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.1%
225M Dupont (E.I.) de Nemours & Co., 5.75%, 7/9/98
(cost $224,713) 224,713 114
- ----------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $18,717,153) 98.7% 19,553,532 9,872
OTHER ASSETS, LESS LIABILITIES 1.3 252,567 128
- ----------------------------------------------------------------------------------------
NET ASSETS 100.0% $19,806,099 $10,000
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
+ See Note 4
(a) Each unit consists of one 0%-12.625% senior discount note due 2008 and three
warrants to buy three shares of common stock.
See notes to financial statements
11
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
June 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS--99.0%
ALABAMA--1.6%
$ 250M Coffee Cnty. Public Bldg. Authority, 6.10%,
9/1/2016 $ 271,875 $ 163
- --------------------------------------------------------------------------------------
ARIZONA--3.2%
250M Maricopa County Development Authority Hosp. Facs.
Rev. (Samaritan Hlth. Svcs.), 7%, 12/1/2016 313,125 187
55M Maricopa County Uni. Sch. Dist. Gen. Oblig. #80
(Chandler), 6.25%, 7/1/2011* 62,150 37
145M Maricopa County Uni. Sch. Dist. Gen. Oblig. #80
(Chandler), 6.25%, 7/1/2011 167,118 100
- --------------------------------------------------------------------------------------
542,393 324
- --------------------------------------------------------------------------------------
ARKANSAS--2.9%
500M Arkansas State College Savings - Series A, 5%,
6/1/2016 490,690 294
- --------------------------------------------------------------------------------------
CALIFORNIA--9.2%
100M Los Angeles County, Calif. Transportation Comm.
Sales Tax Revenue:
6.90%, 7/1/2001* 110,000 66
250M San Francisco City & County Parking Auth., 7%,
6/1/2012 293,125 175
500M San Francisco City & County Redev. Agy. (Moscone
Ctr.), 6.75%, 7/1/2015 566,875 339
250M San Jose Redevelopment Agency, 6%, 8/1/2015 281,562 169
250M Santa Ana Fin. Auth. Lease Rev., 6.25%, 7/1/2015 288,750 173
- --------------------------------------------------------------------------------------
1,540,312 922
- --------------------------------------------------------------------------------------
COLORADO--2.4%
350M Roaring Fork General Obligation, 6.60%,
6/15/2004* 397,687 238
- --------------------------------------------------------------------------------------
CONNECTICUT--2.7%
400M Connecticut Special Tax Oblig. Rev., 6.10%,
10/1/2004* 444,500 266
- --------------------------------------------------------------------------------------
DELAWARE--.8%
130M Delaware Cnty. Hosp. Auth. (Ball Memorial Hosp.),
6.625%, 8/1/2001* 141,863 85
- --------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
FLORIDA--5.3%
$ 335M Cocoa Water & Sewer Revenue, 5.75%, 10/1/2017 $ 363,475 $ 218
500M Pensacola Airport Revenue, 5.60%, 10/1/2017 525,625 315
- --------------------------------------------------------------------------------------
889,100 533
- --------------------------------------------------------------------------------------
ILLINOIS--11.0%
500M Chicago Board of Education, 6.25%, 12/1/2012 573,040 343
500M Chicago General Obligation, 6%, 7/1/2005* 558,125 334
500M Illinois Dev. Fin. Auth. (Rockford School 205),
6.55%, 2/1/2009 582,685 349
100M Will County School District General Obligation,
7.10%, 12/1/2009 122,084 73
- --------------------------------------------------------------------------------------
1,835,934 1,099
- --------------------------------------------------------------------------------------
MAINE--1.7%
250M Maine Municipal Bond Bank, 6.50%, 11/1/2014 278,938 167
- --------------------------------------------------------------------------------------
MARYLAND--7.0%
1,000M Baltimore General Obligation, Zero Coupon,
10/15/2011 526,570 315
650M Maryland State Health & Educational Facilities
Auth. (Johns Hopkins Medicine), 5%, 7/1/2019 638,625 382
- --------------------------------------------------------------------------------------
1,165,195 697
- --------------------------------------------------------------------------------------
MASSACHUSETTS--3.3%
500M Mass. Bay Transportation Authority Gen. Sys.
Rev., 5.80%, 3/1/2013 550,470 330
- --------------------------------------------------------------------------------------
MICHIGAN--3.3%
1,000M Howell Public Schools General Obligation, Zero
Coupon, 5/1/2006* 325,000 195
220M Michigan Municipal Bond Auth. Rev., 5.05%,
5/1/2015 219,725 132
- --------------------------------------------------------------------------------------
544,725 327
- --------------------------------------------------------------------------------------
MISSOURI--4.9%
200M Liberty Sewer System Revenue, 6.15%, 2/1/2015 222,250 133
500M Missouri State Health & Educational Facilities
Auth. (BJC Health System), 6.75%, 5/15/2010 592,325 355
- --------------------------------------------------------------------------------------
814,575 488
- --------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
June 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
NEW JERSEY--3.2%
$ 485M New Jersey Housing & Mortgage Fin. Rev., 6.55%,
10/1/2010 $ 531,075 $ 318
- --------------------------------------------------------------------------------------
NEW YORK--1.9%
290M New York City Municipal Water Fin. Auth. Rev.,
5.875%, 6/15/2001* 324,075 194
- --------------------------------------------------------------------------------------
NORTH CAROLINA--2.8%
430M North Carolina Central Univ. Hsg. Rev., 5.75%,
11/1/2015 461,175 276
- --------------------------------------------------------------------------------------
OHIO--1.6%
250M Lorain County Hosp. Rev. (Catholic Healthcare
Partners), 5.625%, 9/1/2014 265,000 159
- --------------------------------------------------------------------------------------
OKLAHOMA--3.5%
500M Grand River Dam Authority Revenue, 6.25%,
6/1/2011 580,105 347
- --------------------------------------------------------------------------------------
OREGON--3.2%
500M Oregon State Dept. of Administrative Services
Cert. of Partic., 5.65%, 5/1/2012 538,750 323
- --------------------------------------------------------------------------------------
PENNSYLVANIA--7.1%
525M Erie General Obligation, 5.75%, 5/15/2013 564,926 338
200M Jeannette School District General Obligation,
6.65%, 6/1/2001* 214,250 128
350M Philaldelphia Water & Wastewater Rev., 6.25%,
8/1/2012 403,813 242
- --------------------------------------------------------------------------------------
1,182,989 708
- --------------------------------------------------------------------------------------
PUERTO RICO--6.4%
400M Puerto Rico Commonwealth Hwy. & Transn. Auth.
Rev., 6.25%, 7/1/2014 467,500 280
545M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl.
Facs., 6.25%, 7/1/2016 604,269 362
- --------------------------------------------------------------------------------------
1,071,769 642
- --------------------------------------------------------------------------------------
RHODE ISLAND--1.3%
200M Rhode Island Convention Center Authority, 6.70%,
5/15/2001* 217,750 130
- --------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
TEXAS--8.7%
$ 505M Austin Utility System Rev., 6%, 11/15/2013 $ 575,069 $ 344
500M Harris County General Obligation, 6.50%,
8/15/2013 586,420 351
250M Houston Water Conveyance System Cert. of Partic.,
6.25%, 12/15/2012 288,750 173
- --------------------------------------------------------------------------------------
1,450,239 868
- --------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $14,940,653) 99.0% 16,531,184 9,898
OTHER ASSETS, LESS LIABILITIES 1.0 170,415 102
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $16,701,599 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Municipal bonds which have been prerefunded are shown maturing at the
prerefunded call date.
See notes to financial statements
15
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
EXECUTIVE INVESTORS TRUST
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $3,192,451 $18,717,153 $14,940,653
--------- ---------- -----------
--------- ---------- -----------
At value (Note 1A)................... $4,370,990 $19,553,532 $16,531,184
Cash................................... 131,626 -- 6,108
Receivables:
Interest and dividends............... 2,791 390,818 216,555
Trust shares sold.................... 30,894 58,116 18,152
Investment securities sold........... 10,000 -- --
--------- ---------- -----------
Total Assets........................... 4,546,301 20,002,466 16,771,999
--------- ---------- -----------
LIABILITIES
Payables:
Trust shares redeemed................ 100 24,882 1,000
Dividends payable.................... -- 135,666 61,973
Accrued expenses....................... 5,336 27,515 3,268
Accrued advisory fee................... 1,820 8,304 4,159
--------- ---------- -----------
Total Liabilities...................... 7,256 196,367 70,400
--------- ---------- -----------
NET ASSETS............................. $4,539,045 $19,806,099 $16,701,599
--------- ---------- -----------
--------- ---------- -----------
NET ASSETS CONSIST OF:
Capital paid in........................ $3,115,334 $23,549,340 $14,983,701
Undistributed net investment income.... 5,263 153,354 2,624
Accumulated net realized gain (loss) on
investment
transactions......................... 239,909 (4,732,974) 124,743
Net unrealized appreciation in value of
investments.......................... 1,178,539 836,379 1,590,531
--------- ---------- -----------
Total.................................. $4,539,045 $19,806,099 $16,701,599
--------- ---------- -----------
--------- ---------- -----------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 185,291 2,456,170 1,151,503
--------- ---------- -----------
--------- ---------- -----------
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE
(Net assets divided by trust shares
outstanding)......................... $ 24.50 $ 8.06 $ 14.50
--------- ----- -----------
--------- ----- -----------
MAXIMUM OFFERING PRICE PER SHARE
(Net asset value/.9525)*............. $ 25.72 $ 8.46 $ 15.22
--------- ----- -----------
--------- ----- -----------
</TABLE>
* On purchases of $100,000 or more, the sales charge is reduced.
See notes to financial statements
16
<PAGE>
STATEMENT OF OPERATIONS
EXECUTIVE INVESTORS TRUST
Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest............................. $ 4,937 $ 931,511 $ 436,578
Dividends............................ 25,219 418 --
Consent fees......................... -- 26,750 --
--------- ---------- -----------
Total income........................... 30,156 958,679 436,578
--------- ---------- -----------
Expenses (Notes 1 and 3):
Advisory fee......................... 21,285 99,711 81,763
Distribution plan expenses........... 10,627 49,845 40,870
Shareholder servicing costs.......... 2,939 13,024 5,066
Professional fees.................... 1,707 6,590 5,356
Custodian fees....................... 3,141 2,810 2,381
Reports and notices to
shareholders....................... 794 2,554 1,826
Other expenses....................... 782 3,943 2,274
--------- ---------- -----------
Total expenses......................... 41,275 178,477 139,536
Less: Expenses waived or assumed....... (20,447) (59,827) (76,327)
Custodian fees paid indirectly.... (3,040) (2,505) (480)
--------- ---------- -----------
Net expenses........................... 17,788 116,145 62,729
--------- ---------- -----------
Net investment income.................. 12,368 842,534 373,849
--------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 2):
Net realized gain on investments....... 232,722 298,661 124,743
Net unrealized appreciation
(depreciation) of investments........ 280,925 (417,555) (28,158)
--------- ---------- -----------
Net gain (loss) on investments......... 513,647 (118,894) 96,585
--------- ---------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $ 526,015 $ 723,640 $ 470,434
--------- ---------- -----------
--------- ---------- -----------
</TABLE>
See notes to financial statements
17
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
EXECUTIVE INVESTORS TRUST
<TABLE>
<CAPTION>
- ---------------------------------------------------------------
BLUE CHIP FUND
----------------------
1/1/98 TO 1/1/97 TO
6/30/98 12/31/97
- --------------------------------------- ---------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income................ $ 12,368 $ 27,109
Net realized gain on investments..... 232,722 226,701
Net unrealized appreciation
(depreciation) of investments...... 280,925 399,894
---------- ----------
Net increase in net assets
resulting from operations........ 526,015 653,704
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income................ (8,501) (27,075)
Net realized gains................... -- (219,514)
---------- ----------
Total distributions................ (8,501) (246,589)
---------- ----------
TRUST SHARE TRANSACTIONS (a)
Proceeds from shares sold............ 718,451 1,122,087
Reinvestment of distributions........ 7,941 236,032
Cost of shares redeemed.............. (432,162) (198,168)
---------- ----------
Net increase from trust share
transactions....................... 294,230 1,159,951
---------- ----------
Net increase in net assets......... 811,744 1,567,066
NET ASSETS
Beginning of period.................. 3,727,301 2,160,235
---------- ----------
End of period+....................... $4,539,045 $3,727,301
---------- ----------
---------- ----------
+Includes undistributed net investment
income of............................. $ 5,263 $ 1,396
---------- ----------
---------- ----------
(a)TRUST SHARES ISSUED AND REDEEMED
Sold................................. 31,536 52,260
Issued for distributions
reinvested......................... 329 10,913
Redeemed............................. (18,490) (8,947)
---------- ----------
Net increase in trust shares......... 13,375 54,226
---------- ----------
---------- ----------
</TABLE>
See notes to financial statements
18
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
INSURED
HIGH YIELD FUND TAX EXEMPT FUND
------------------------ ------------------------
1/1/98 TO 1/1/97 TO 1/1/98 TO 1/1/97 TO
6/30/98 12/31/97 6/30/98 12/31/97
- --------------------------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income................ $ 842,534 $ 1,567,815 $ 373,849 $ 750,397
Net realized gain on investments..... 298,661 63,758 124,743 133,949
Net unrealized appreciation
(depreciation) of investments...... (417,555) 437,713 (28,158) 663,898
----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations........ 723,640 2,069,286 470,434 1,548,244
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income................ (828,077) (1,582,847) (371,820) (751,800)
Net realized gains................... -- -- -- (133,949)
----------- ----------- ----------- -----------
Total distributions................ (828,077) (1,582,847) (371,820) (885,749)
----------- ----------- ----------- -----------
TRUST SHARE TRANSACTIONS (a)
Proceeds from shares sold............ 1,904,461 3,853,833 1,768,134 1,477,036
Reinvestment of distributions........ 288,619 697,365 180,971 521,972
Cost of shares redeemed.............. (1,516,281) (2,577,220) (1,539,069) (1,876,983)
----------- ----------- ----------- -----------
Net increase from trust share
transactions....................... 676,799 1,973,978 410,036 122,025
----------- ----------- ----------- -----------
Net increase in net assets......... 572,362 2,460,417 508,650 784,520
NET ASSETS
Beginning of period.................. 19,233,737 16,773,320 16,192,949 15,408,429
----------- ----------- ----------- -----------
End of period+....................... $19,806,099 $19,233,737 $16,701,599 $16,192,949
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
+Includes undistributed net investment
income of............................ $ 153,354 $ 138,897 $ 2,624 $ 595
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
(a)TRUST SHARES ISSUED AND REDEEMED
Sold................................. 232,676 485,416 122,036 105,445
Issued for distributions
reinvested......................... 35,182 87,700 12,559 37,083
Redeemed............................. (185,348) (324,689) (106,474) (134,047)
----------- ----------- ----------- -----------
Net increase in trust shares......... 82,510 248,427 28,121 8,481
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS
EXECUTIVE INVESTORS TRUST
1. SIGNIFICANT ACCOUNTING POLICIES--Executive Investors Trust (the "Trust"), a
Massachusetts business trust, is registered under the Investment Company Act of
1940 (the "1940 Act") as a diversified, open-end management investment company.
The Trust consists of unlimited shares of beneficial interest of the Blue Chip
Fund, the High Yield Fund and the Insured Tax Exempt Fund (each a "Fund") and
accounts separately for the assets, liabilities and operations of each Fund. The
objective of each Fund is as follows:
BLUE CHIP FUND seeks to provide high total investment return consistent with the
preservation of capital.
HIGH YIELD FUND primarily seeks to provide high current income and secondarily
seeks capital appreciation.
INSURED TAX EXEMPT FUND seeks to provide a high level of interest income which
is exempt from federal income tax.
A. Security Valuation--Except as provided below, a security listed or traded on
an exchange or the Nasdaq Stock Market is valued at its last sale price on the
exchange or market where the security is principally traded, and lacking any
sales, the security is valued at the mean between the closing bid and asked
prices. Each security traded in the over-the-counter market (including
securities listed on exchanges whose primary market is believed to be
over-the-counter) is valued at the mean between the last bid and asked prices
based upon quotes furnished by a market maker for such securities. Securities
may also be priced by a pricing service. The pricing service uses quotations
obtained from investment dealers or brokers and other available information in
determining value. The municipal bonds in which the Insured Tax Exempt Fund
invests are traded primarily in the over-the-counter markets. Such securities
are valued daily at their fair value on the basis of valuations provided by a
pricing service approved by the Board of Trustees. The pricing service considers
security type, rating, market condition and yield data, as well as market
quotations and prices provided by market makers. "When-issued securities" are
reflected in the assets of the Fund as of the date the securities are purchased.
Short-term debt securities that mature in 60 days or less are valued on the
amortized cost method which approximates market value. Securities for which
market quotations are not readily available and other assets are valued on a
consistent basis at fair value as determined in good faith by or under the
direction of the Trust's officers in a manner specifically authorized by the
Board of Trustees of the Trust.
The municipal bonds held by the Insured Tax Exempt Fund are insured as to
payment of principal and interest by the issuer or under insurance policies
written by independent insurance companies. The Fund may retain any insured
municipal bond which is in default in the payment of principal or interest until
the default has been cured or the principal and interest outstanding are paid by
an issuer of any letter of credit or other guarantee supporting such municipal
bond. In such case, it is the Fund's policy to value the defaulted bond daily
based upon the value of a comparable bond which is insured and not in default.
In selecting a comparable bond, the Fund will consider security type, rating,
market condition and yield. The Fund may invest up to 20% of its assets in
portfolio securities not covered by the insurance feature.
B. Federal Income Taxes--No provision has been made for federal income taxes on
net income or capital gains since it is the policy of the Trust to continue to
comply with the special provisions of the Internal Revenue Code applicable to
investment companies and to make sufficient distributions of income and capital
gains (in excess of any available capital loss carryovers), to relieve it from
all, or substantially all, federal income taxes. At June 30, 1998, the High
Yield Fund had capital loss carryovers of $5,031,635 of which $3,364,392 expires
in
20
<PAGE>
1998, $1,286,892 expires in 1999, $211,168 expires in 2003, $109,463 expires in
2004 and $59,720 expires in 2005.
C. Expense Allocation--Expenses directly charged or attributable to a Fund are
paid from the assets of that Fund. General expenses of the Trust are allocated
among and charged to the assets of each Fund on a fair and equitable basis,
which may be based on the relative assets of each Fund or the nature of the
services performed and relative applicability to each Fund.
D. Distributions to Shareholders--Dividends from net investment income to the
shareholders of the High Yield Fund and the Insured Tax Exempt Fund are
generally declared daily and paid monthly. Dividends from net investment income
of the Blue Chip Fund are generally declared and paid quarterly. Distributions
from net realized capital gains, if any, are generally declared and paid
annually.
Income dividends and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
capital loss carryforwards and post-October capital losses.
E. Use of Estimates--The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenue and expense during the reporting period. Actual results could differ
from those estimates.
F. Other--Security transactions are accounted for on the date the securities are
purchased or sold. Cost is determined, and gains and losses are based, on the
identified cost basis for both financial statement and federal income tax
purposes. Interest income and estimated expenses are accrued daily. Dividend
income is recorded on the ex-dividend date. For the six months ended June 30,
1998, the Funds' custodian has provided credits in the amount of $6,025 against
custodian charges based on the uninvested cash balances of the Funds.
2. SECURITY TRANSACTIONS--For the six months ended June 30, 1998, purchases and
sales of securities, other than short-term tax exempt investments and short-term
securities, were as follows:
<TABLE>
<CAPTION>
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
--------- ---------- -----------
<S> <C> <C> <C>
Cost of purchases...................... $2,099,251 $6,355,560 $14,861,006
--------- ---------- -----------
--------- ---------- -----------
Proceeds of sales...................... $1,577,508 $5,447,489 $14,989,956
--------- ---------- -----------
--------- ---------- -----------
</TABLE>
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS
EXECUTIVE INVESTORS TRUST
At June 30, 1998, aggregate cost and net unrealized appreciation of securities
for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
--------- ---------- -----------
<S> <C> <C> <C>
Aggregate cost......................... $3,192,451 $18,717,153 $14,940,653
--------- ---------- -----------
--------- ---------- -----------
Gross unrealized appreciation.......... $1,235,217 $1,041,267 $ 1,592,546
Gross unrealized depreciation.......... 56,678 204,888 2,015
--------- ---------- -----------
Net unrealized appreciation............ $1,178,539 $ 836,379 $ 1,590,531
--------- ---------- -----------
--------- ---------- -----------
</TABLE>
3. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES--Certain officers and
trustees of the Trust are officers and directors of its investment adviser,
Executive Investors Management Company, Inc. ("EIMCO"), its underwriter,
Executive Investors Corporation ("EIC"), its transfer agent, Administrative Data
Management Corp. ("ADM") and/or First Financial Savings Bank, S.L.A. ("FFS"),
custodian of the Trust's Individual Retirement Accounts. Trustees of the Trust
who are not "interested persons" of the Trust as defined in the 1940 Act are
remunerated by the Funds. For the six months ended June 30, 1998, total trustees
fees accrued by the Funds amounted to $450.
The Investment Advisory Agreement provides as compensation to EIMCO an annual
fee, payable monthly, at the rate of 1% on the first $200 million of each Fund's
average daily net assets, .75% on the next $300 million, declining by .03% on
each $250 million thereafter, down to .66% on average daily net assets over $1
billion. The total advisory fees earned by EIMCO from all Funds was $202,759 of
which $123,935 was waived. In addition, expenses of $12,390 were assumed by
EIMCO.
For the six months ended June 30, 1998, EIC, as underwriter of the Trust,
received $16,995 in commissions from the sale of Trust shares, after allowing
$127,499 to other dealers. Shareholder servicing costs included $13,920 in
transfer agent fees accrued to ADM and $1,494 in IRA custodian fees accrued to
FFS.
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the 1940 Act, each
Fund is authorized to pay EIC a fee equal to .50% of its average daily net
assets on an annualized basis each fiscal year, payable quarterly. The fee
consists of a distribution fee and a service fee. The service fee is paid for
the ongoing servicing of clients who are shareholders of that Fund. For the six
months ended June 30, 1998, total distribution plan fees accrued to EIC amounted
to $101,342 (of which $20,276 was waived).
4. RULE 144A SECURITIES--Under Rule 144A, certain restricted securities are
exempt from the registration requirements of the Securities Act of 1933 and may
only be resold to qualified institutional investors. At June 30, 1998, the High
Yield Fund held thirteen 144A securities with an aggregate value of $2,660,252.
These securities represent 13.4% of the Fund's net assets and are valued as set
forth in Note 1A.
5. CONCENTRATION OF CREDIT RISK--The High Yield Fund's investment in high yield
securities, whether rated or unrated, may be considered speculative and subject
to greater market fluctuations and risk of loss of income and principal than
lower yielding, higher rated, fixed income securities. The risk of loss due to
default by the issuer may be significantly greater for the holders of high
yielding securities, because such securities are generally unsecured and are
often subordinated to other creditors of the issuer.
22
<PAGE>
This page intentionally left blank
23
<PAGE>
FINANCIAL HIGHLIGHTS
EXECUTIVE INVESTORS TRUST
The following table sets forth the per share operating performance data for a
share of beneficial interest outstanding, total return, ratios to average net
assets and other supplemental data for each period indicated.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
--------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
NET ASSET -------------------------------------- FROM
VALUE NET REALIZED --------------------
--------- NET AND UNREALIZED TOTAL FROM NET NET
BEGINNING INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
1993..................... $ 13.78 $ .23 $ .88 $ 1.11 $ .23 $ .59 $ .82
1994..................... 14.07 .24 (.41) (.17) .22 .93 1.15
1995..................... 12.75 .30 4.30 4.60 .29 .74 1.03
1996..................... 16.32 .22 3.13 3.35 .24 1.07 1.31
1997..................... 18.36 .19 4.68 4.87 .19 1.36 1.55
1/1/98 to 6/30/98........ 21.68 .07 2.80 2.87 .05 -- .05
- -----------------------------------------------------------------------------------------------------------------
HIGH YIELD FUND
1993..................... $ 7.43 $ .72 $ .50 $ 1.22 $ .76 $ -- $ .76
1994..................... 7.89 .70 (.87) (.17) .74 -- .74
1995..................... 6.98 .70 .58 1.28 .67 -- .67
1996..................... 7.59 .72 .28 1.00 .70 -- .70
1997..................... 7.89 .68 .23 .91 .70 -- .70
1/1/98 to 6/30/98........ 8.10 .35 (.05) .30 .34 -- .34
- -----------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND
1993..................... $ 12.83 $ .71 $ 1.27 $ 1.98 $ .72 $ .32 $ 1.04
1994..................... 13.77 .68 (1.23) (.55) .69 -- .69
1995..................... 12.53 .72 1.80 2.52 .73 .28 1.01
1996..................... 14.04 .66 (.10) .56 .67 .11 .78
1997..................... 13.82 .67 .71 1.38 .67 .12 .79
1/1/98 to 6/30/98........ 14.41 .33 .09 .42 .33 -- .33
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized
* Calculated without sales charges.
+ Net of expenses waived or assumed (Note 3).
See notes to financial statements
24
<PAGE>
The following table sets forth the per share operating performance data for a
share of beneficial interest outstanding, total return, ratios to average net
assets and other supplemental data for each period indicated.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
----------------------------------------------------------------------------------------
---------
RATIO TO AVERAGE NET
RATIO TO AVERAGE ASSETS BEFORE EXPENSES
NET ASSETS+ WAIVED OR ASSUMED
NET ASSET ---------------------- -----------------------
VALUE TOTAL NET NET PORTFOLIO
--------- RETURN NET ASSETS INVESTMENT INVESTMENT TURNOVER
END * END OF PERIOD EXPENSES INCOME EXPENSES INCOME RATE
OF PERIOD (%) (IN THOUSANDS) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
1993..................... $ 14.07 8.13 $ 956 .50 1.63 2.30 (.17) 47
1994..................... 12.75 (1.21) 1,041 .50 1.82 2.54 (.22) 89
1995..................... 16.32 36.30 1,427 .50 1.99 2.20 .29 33
1996..................... 18.36 20.62 2,160 .75 1.33 2.28 (.20) 50
1997..................... 21.68 26.58 3,727 .75 .92 2.03 (.36) 163
1/1/98 to 6/30/98........ 24.50 13.22 4,539 .84(a) .72(a) 1.80(a) (.24)(a) 40
- ------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD FUND
1993..................... $ 7.89 17.04 $ 14,231 1.34 9.49 1.95 8.88 89
1994..................... 6.98 (2.32) 15,142 1.33 9.45 1.88 8.90 53
1995..................... 7.59 19.08 15,672 1.35 9.52 1.90 8.97 69
1996..................... 7.89 13.69 16,773 1.22 9.38 1.82 8.78 27
1997..................... 8.10 12.03 19,234 1.22 8.68 1.82 8.08 49
1/1/98 to 6/30/98........ 8.06 3.74 19,806 1.19(a) 8.45(a) 1.76(a) 7.88(a) 28
- ------------------------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND
1993..................... $ 13.77 15.74 $ 9,447 .50 5.29 1.68 4.11 97
1994..................... 12.53 (3.95) 10,363 .50 5.39 1.80 4.09 215
1995..................... 14.04 20.53 13,342 .50 5.35 1.74 4.11 147
1996..................... 13.82 4.11 15,408 .75 4.85 1.71 3.89 116
1997..................... 14.41 10.30 16,193 .75 4.80 1.71 3.84 126
1/1/98 to 6/30/98........ 14.50 2.95 16,702 .77(a) 4.57(a) 1.71(a) 3.63(a) 91
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized
* Calculated without sales charges.
+ Net of expenses waived or assumed (Note 3).
See notes to financial statements
25
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Trustees of
Executive Investors Trust
We have audited the accompanying statement of assets and liabilities, including
the portfolios of investments, of the Blue Chip, High Yield and Insured Tax
Exempt Funds (comprising Executive Investors Trust), as of June 30, 1998, the
related statement of operations for the six months then ended, the statement of
changes in net assets for the six months ended June 30, 1998 and the year ended
December 31, 1997 and financial highlights for each of the periods indicated
thereon. These financial statements and financial highlights are the
responsibility of the Trust's 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 June
30, 1998, by correspondence with the custodian. 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
Blue Chip, High Yield and Tax Exempt Funds at June 30, 1998, and the results of
their operations, changes in their net assets and financial highlights for the
periods presented, in conformity with generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
July 31, 1998
26
<PAGE>
EXECUTIVE INVESTORS TRUST
TRUSTEES
- -------------------------------------------
JAMES J. COY (Emeritus)
ROGER L. GRAYSON
GLENN O. HEAD
KATHRYN S. HEAD
REX R. REED
HERBERT RUBINSTEIN
NANCY S. SCHAENEN
JAMES M. SRYGLEY
JOHN T. SULLIVAN
ROBERT F. WENTWORTH
OFFICERS
- -------------------------------------------
GLENN O. HEAD
President
GEORGE V. GANTER
Vice President
PATRICIA D. POITRA
Vice President
CLARK D. WAGNER
Vice President
CONCETTA DURSO
Vice President and Secretary
JOSEPH I. BENEDEK
Treasurer
CAROL LERNER BROWN
Assistant Secretary
GREGORY R. KINGSTON
Assistant Treasurer
MARK S. SPENCER
Assistant Treasurer
SHAREHOLDER INFORMATION
- -------------------------------------------
INVESTMENT ADVISER
EXECUTIVE INVESTORS
MANAGEMENT COMPANY, INC.
95 Wall Street
New York, NY 10005
UNDERWRITER
EXECUTIVE INVESTORS CORPORATION
95 Wall Street
New York, NY 10005
CUSTODIAN
THE BANK OF NEW YORK
48 Wall Street
New York, NY 10286
TRANSFER AGENT
ADMINISTRATIVE DATA
MANAGEMENT CORP.
581 Main Street
Woodbridge, NJ 07095-1198
LEGAL COUNSEL
KIRKPATRICK & LOCKHART LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
AUDITORS
TAIT, WELLER & BAKER
Eight Penn Center Plaza
Philadelphia, PA 19103
It is the Trust's practice to mail only one copy of its annual and semi-annual
reports to any address at which more than one shareholder with the same last
name has indicated that mail is to be delivered. Additional copies of the
reports will be mailed if requested by any shareholder in writing or by calling
800-423-4026. The Trust will ensure that separate reports are sent to any
shareholder who subsequently changes his or her mailing address.
This report is authorized for distribution only to existing shareholders, and,
if given to prospective shareholders, must be accompanied or preceded by the
Trust's prospectus.
27
<PAGE>
EXECUTIVE INVESTORS TRUST
95 WALL STREET
NEW YORK, NY 10005
EIHY107
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" appear in a box to the
right of a circle containing the words "MAILED FROM ZIP CODE 11201" which
appears to the right of the above language in the printed piece.
Vertically reading from bottom to top in the center of the page the words
"EXECUTIVE INVESTORS" appear.
EXECUTIVE
INVESTORS
TRUST
Blue Chip Fund
High Yield Fund
Insured Tax Exempt Fund
SEMI-
ANNUAL
REPORT
JUNE 30, 1998
