<PAGE>
EXECUTIVE INVESTORS LOGO
BLUE CHIP
HIGH YIELD
INSURED TAX EXEMPT
EXECUTIVE INVESTORS FUNDS
SEMI - ANNUAL REPORT
JUNE 30, 1999
<PAGE>
MARKET OVERVIEW
EXECUTIVE INVESTORS TRUST
Dear Investor:
We are pleased to present this Market Overview for the semi-annual report for
the Executive Investors Trust funds for the six month period ended June 30,
1999. The period under review was characterized by a strong U.S. economy, rising
interest rates and a climbing stock market.
THE ECONOMY
The U.S. economy, now in its ninth year of expansion, continued its remarkable
performance. Economic growth in the first quarter of 1999 was strong, with the
Gross Domestic Product (GDP) growing by 4.3% on an annualized basis. The
momentum continued into the second quarter, with growth of 2.3% on an annualized
basis. Although the economy continued to expand, inflation stayed under control.
As of June 30, the rate of inflation for the previous 12 months was 2% as
measured by the Consumer Price Index (CPI). The unemployment rate remained near
its lowest level in 30 years at 4.3%. Rising personal income, high consumer
confidence, wealth from stock market gains and home price appreciation combined
to power economic growth.
THE EQUITY MARKET
During the reporting period, most sectors of the equity market posted strong
gains, driven largely by the vibrant domestic economy, healthy corporate
earnings and subsiding concerns about inflation. There was a dramatic rotation
among equity sectors during the period, as investors responded to perceived
economic changes.
As the first quarter of 1999 began, investors were concerned about a possible
slowing economy and a deteriorating corporate profit outlook for the year.
Investors gravitated toward "growth" stocks, placing their bets on promising
companies that they felt had the potential to grow at a rate faster than that of
the economy. Early in the year, high-flying Internet stocks led the equity
rally. Prominent technology companies continued to flourish as investors
theorized that they would be able to post strong earnings despite an economic
slowdown. The continued growth of Internet-related businesses helped boost the
performances of providers of telecommunications services by fueling the need for
greater bandwidth. In addition, leading hardware, software and networking
companies' strong gains were propelled by the Internet phenomenon. In general,
the returns of stocks of large capitalization companies outpaced those of medium
capitalization and small capitalization companies for the first quarter.
In the second quarter of 1999, a number of economic influences triggered a
pronounced shift in the equity environment. Economic data showed that earlier
1
<PAGE>
MARKET OVERVIEW (continued)
EXECUTIVE INVESTORS TRUST
fears of sluggish growth were unjustified and that the U.S. economy remained
surprisingly strong. In the international arena, economies throughout the world
were generally healthy thanks to the stabilization of many emerging markets and
central bank intervention aimed to keep interest rates and inflation low. Amid
this good news, concerns mounted that the strong economic climate would spur
inflation and raise interest rates. This boosted the stock performances of
old-line industries whose sales jump when the economy booms and inflation rises.
The stocks of once lagging sectors such as metals, energy, basic materials,
chemicals, paper and other classic cyclicals produced strong gains. The rising
interest rate environment caused investors to pull away from growth-oriented and
technology/Internet-related companies whose high price to earnings ratio made
them appear overvalued. In a stunning reversal, the stocks of small-cap
companies outpaced large- and mid-cap firms. Their gains were powered by strong
earnings reports and heavy mergers and acquisition activity, as promising small
companies were absorbed by larger firms.
THE BOND MARKET
During the first half of 1999, interest rates moved sharply higher, causing bond
prices to decline. The 30-year U.S. Treasury rate rose from 5.10% on December 31
to 5.96% on June 30. The bellwether rate reached a high of 6.16% in June. This
rising interest rate environment was driven by a number of factors, including
the improvement of economies around the globe. With foreign economies and
markets recovering from last year's financial markets crisis, the "flight to
safety" which had benefited U.S. Treasuries reversed, as investors returned to
riskier asset classes.
As well, the Federal Reserve became concerned that the continued strength of the
U.S. economy, particularly when combined with tight labor markets, would lead to
inflation. In an effort to preempt inflation, the Fed raised the Federal Funds
rate 25 basis points (.25%), to 5%, on June 30. This tightening of monetary
policy was a partial unwinding of last Fall's 75 basis point (.75%) decrease in
the Federal Funds rate. Although the Fed has currently adopted a neutral stance
toward interest rates, it remains alert to developments that may require further
rate increases.
Among bond sectors, the high yield bond market provided the highest total
returns over the past six months, as companies benefited from the strong economy
and healthy earnings. The mortgage-backed bond market was the second best
performing bond sector as higher rates substantially reduced prepayment risk.
Treasury securities and investment grade corporate bonds had the lowest total
2
<PAGE>
returns among bond sectors, in large part due to heavy issuance of U.S. agency
and corporate debt. Lastly, in June, long-term municipal bond yields rose to
their highest level in over 18 months.
LOOKING AHEAD
Going forward, we remain optimistic that the equity market could produce
positive gains for the remainder of the year. However, we are watchful that an
economic downturn could negatively affect investor sentiment. As the year
progresses, Year 2000 issues will increasingly hang over some stocks and
industries. Overall, we are encouraged by the healthy fundamentals of the
domestic economy and promising corporate earnings, which should create a
positive backdrop for the equity market.
We anticipate that the bond market will remain stable, at best, for the next
three to six months. The domestic economy remains strong, although inflation is
not yet apparent. The Fed should remain vigilant in its mission to keep
inflation under control. To this end, one or two additional interest rate hikes
over the next six months are possible. The bond markets can potentially perform
better in the next six to nine months if the economy slows, inflation remains
low and the Fed is satisfied with the economic outlook.
Thank you for your continued confidence in Executive Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Patricia D. Poitra
Patricia D. Poitra
Director of Equities
Executive Investors Management Company, Inc.
/s/ Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
Executive Investors Management Company, Inc.
July 30, 1999
3
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
June 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--97.2%
BASIC MATERIALS--2.2%
200 Alcoa, Inc. $ 12,375 $ 23
200 Du Pont (E.I.) de Nemours & Company 13,662 25
700 Ecolab, Inc. 30,537 57
1,500 Mead Corporation 62,625 116
- -------------------------------------------------------------------------------------
119,199 221
- -------------------------------------------------------------------------------------
CAPITAL GOODS--9.1%
300 Deere & Company 11,887 22
1,000 Ford Motor Company 56,437 105
1,500 General Electric Company 169,500 315
1,300 Ingersoll-Rand Company 84,012 156
500 Pitney Bowes, Inc. 32,125 60
1,400 Tyco International, Ltd. 132,650 247
- -------------------------------------------------------------------------------------
486,611 905
- -------------------------------------------------------------------------------------
COMMUNICATION SERVICES--7.1%
2,800 *AT&T Corp. - Liberty Media Group - Class "A" 102,900 191
1,100 Bell Atlantic Corporation 71,912 134
700 GTE Corporation 53,025 99
1,500 *MCI Worldcom, Inc. 129,375 240
800 *Qwest Communications International, Inc. 26,450 49
- -------------------------------------------------------------------------------------
383,662 713
- -------------------------------------------------------------------------------------
CONSUMER CYCLICALS--8.9%
600 *Abercrombie & Fitch Company - Class "A" 28,800 54
300 *Best Buy Company, Inc. 20,250 38
1,100 *Costco Companies, Inc. 88,069 164
800 Home Depot, Inc. 51,550 96
1,400 Masco Corporation 40,425 75
1,200 McGraw-Hill Companies, Inc. 64,725 120
450 *Office Depot, Inc. 9,928 18
800 Tribune Company 69,700 130
2,200 Wal-Mart Stores, Inc. 106,150 197
- -------------------------------------------------------------------------------------
479,597 892
- -------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES--12.3%
1,200 Anheuser-Busch Companies, Inc. $ 85,125 $ 158
1,200 Bergen Brunswig Corporation - Class "A" 20,700 38
700 Bestfoods 34,650 64
700 *Clear Channel Communications, Inc. 48,256 90
900 General Mills, Inc. 72,337 134
1,000 *Kroger Company 27,937 52
2,500 PepsiCo, Inc. 96,719 180
600 Procter & Gamble Company 53,550 100
1,500 *Safeway, Inc. 74,250 138
1,400 Time Warner, Inc. 102,900 191
357 Unilever NV - NY Shares (ADR) 24,901 46
500 *Viacom, Inc. - Class "B" 22,000 41
- -------------------------------------------------------------------------------------
663,325 1,232
- -------------------------------------------------------------------------------------
ENERGY--4.9%
1,500 Baker Hughes, Inc. 50,250 93
300 Chevron Corporation 28,556 53
1,300 Exxon Corporation 100,262 186
100 Mobil Corporation 9,900 18
400 Royal Dutch Petroleum Company - NY Shares (ADR) 24,100 45
1,600 Sunoco, Inc. 48,300 90
- -------------------------------------------------------------------------------------
261,368 485
- -------------------------------------------------------------------------------------
FINANCIAL--17.0%
200 American Express Company 26,025 48
837 American International Group, Inc. 97,981 182
1,900 Banc One Corporation 113,169 210
739 Bank of America Corporation 54,178 101
500 Capital One Financial Corporation 27,844 52
1,300 Chase Manhattan Corporation 112,613 209
1,650 Citigroup, Inc. 78,375 146
500 Fannie Mae 34,188 64
1,500 First Union Corporation 70,500 131
800 Freddie Mac 46,400 86
1,300 Hartford Financial Services Group, Inc. 75,806 141
450 Jefferson-Pilot Corporation 29,784 55
1,700 MBNA Corporation 52,063 97
300 Merrill Lynch & Company, Inc. 23,981 45
- -------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
EXECUTIVE INVESTORS BLUE CHIP FUND
June 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL (continued)
200 Morgan Stanley Dean Witter & Company $ 20,500 $ 38
1,100 SLM Holding Corporation 50,394 94
- -------------------------------------------------------------------------------------
913,801 1,699
- -------------------------------------------------------------------------------------
HEALTHCARE--11.4%
600 Abbott Laboratories 27,300 51
2,400 American Home Products Corporation 138,000 256
900 Bristol-Myers Squibb Company 63,394 118
500 Cardinal Health, Inc. 32,062 60
500 Eli Lilly and Company 35,813 67
600 Johnson & Johnson 58,800 109
500 Medtronic, Inc. 38,938 72
1,200 Merck & Company, Inc. 88,800 165
400 Pfizer, Inc. 43,900 82
1,200 Warner-Lambert Company 83,250 155
- -------------------------------------------------------------------------------------
610,257 1,135
- -------------------------------------------------------------------------------------
TECHNOLOGY--22.5%
100 *America Online, Inc. 11,050 21
800 *Applied Materials, Inc. 59,100 110
1,600 *Cisco Systems, Inc. 103,200 192
900 *Compuware Corporation 28,631 53
4,800 Ericsson (L.M.) Telephone Company - Class "B"
(ADR) 158,100 294
600 Hewlett-Packard Company 60,300 112
1,600 Intel Corporation 95,200 177
400 International Business Machines Corporation 51,700 96
1,300 *Jabil Circuit, Inc. 58,663 109
400 *Litton Industries, Inc. 28,700 53
1,400 *LSI Logic Corporation 64,575 120
1,200 Lucent Technologies, Inc. 80,925 150
1,100 *Metzler Group, Inc. 30,388 56
1,000 *Microsoft Corporation 90,188 168
300 Nortel Networks Corporation 26,044 48
900 *Oracle Corporation 33,413 62
700 *Sequent Computer Systems, Inc. 12,425 23
400 *Sun Microsystems, Inc. 27,550 51
4,300 *Symantec Corporation 109,650 204
- -------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY (continued)
1,100 Xerox Corporation $ 64,969 $ 121
300 *Xilinx, Inc. 17,175 32
- -------------------------------------------------------------------------------------
1,211,946 2,252
- -------------------------------------------------------------------------------------
UTILITIES--1.8%
1,200 Enron Corporation 98,100 182
- -------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $3,563,862) 97.2% 5,227,866 9,716
OTHER ASSETS, LESS LIABILITIES 2.8 152,566 284
- -------------------------------------------------------------------------------------
NET ASSETS 100.0% $5,380,432 $10,000
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
7
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS HIGH YIELD FUND
June 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--91.9%
AEROSPACE/DEFENSE--1.7%
$ 300M Moog, Inc., 10%, 2006 $ 311,250 $ 172
- --------------------------------------------------------------------------------------
APPAREL/TEXTILES--2.7%
500M Polymer Group, Inc., 9%, 2007 481,250 267
- --------------------------------------------------------------------------------------
AUTOMOTIVE--6.1%
300M Cambridge Industries, Inc., 10.25%, 2007 244,500 136
250M Cooperative Computing, Inc., 9%, 2008 210,000 116
200M Exide Corp., 10%, 2005 201,500 112
500M Special Devices, Inc., 11.375%, 2008+ 452,500 251
- --------------------------------------------------------------------------------------
1,108,500 615
- --------------------------------------------------------------------------------------
BUILDING MATERIALS--1.4%
350M American Architectural Products Corp., 11.75%,
2007 246,750 137
- --------------------------------------------------------------------------------------
CHEMICALS--3.8%
250M Huntsman ICI Chemicals LLC, 10.125%, 2009+ 253,437 140
400M Huntsman Polymers Corp., 11.75%, 2004 426,000 236
- --------------------------------------------------------------------------------------
679,437 376
- --------------------------------------------------------------------------------------
CONSUMER PRODUCTS--3.8%
400M AKI, Inc., 10.50%, 2008 388,000 215
350M Corning Consumer Products Co., 9.625%, 2008 307,125 170
- --------------------------------------------------------------------------------------
695,125 385
- --------------------------------------------------------------------------------------
CONTAINERS/PACKAGING--5.6%
400M Radnor Holdings Corp., 10%, 2003 404,000 224
400M Tekni-Plex, Inc., 9.25%, 2008 392,000 217
200M U.S. Can Corp., 10.125%, 2006 210,000 116
- --------------------------------------------------------------------------------------
1,006,000 557
- --------------------------------------------------------------------------------------
DURABLE GOODS MANUFACTURING--2.2%
400M Columbus McKinnon Corp., 8.50%, 2008 390,000 216
- --------------------------------------------------------------------------------------
ENERGY--3.8%
400M Giant Industries, Inc., 9.75%, 2003 388,000 215
300M Stone Energy Corp., 8.75%, 2007 295,125 164
- --------------------------------------------------------------------------------------
683,125 379
- --------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
ENTERTAINMENT/LEISURE--3.4%
$ 350M Carmike Cinemas, Inc., 9.375%, 2009+ $ 343,437 $ 190
400M Outboard Marine Corp., 10.75%, 2008 274,000 152
- --------------------------------------------------------------------------------------
617,437 342
- --------------------------------------------------------------------------------------
GAMING/LODGING--2.2%
400M Hollywood Park, Inc., 9.25%, 2007 394,000 218
- --------------------------------------------------------------------------------------
HEALTHCARE--3.5%
250M Fisher Scientific International, Inc., 9%, 2008 241,250 134
400M Tenet Healthcare Corp., 8.625%, 2007 392,000 217
- --------------------------------------------------------------------------------------
633,250 351
- --------------------------------------------------------------------------------------
MEDIA (CABLE TV/BROADCASTING)--8.8%
350M American Telecasting, Inc., 14.50%, 2004 369,250 205
500M Diva Systems Corp., 0% - 12.625%, 2008 146,875 81
400M Echostar DBS Corp., 9.375%, 2009+ 408,000 226
300M Grupo Televisa SA, 11.875%, 2006 309,375 171
350M Rogers Communications, Inc., 9.125%, 2006 357,875 198
- --------------------------------------------------------------------------------------
1,591,375 881
- --------------------------------------------------------------------------------------
MEDIA (OTHER)--2.1%
200M Garden State Newspapers, Inc., 8.75%, 2009 189,000 105
200M Garden State Newspapers, Inc., 8.625%, 2011+ 189,500 105
- --------------------------------------------------------------------------------------
378,500 210
- --------------------------------------------------------------------------------------
MINING/METALS--9.1%
400M CSN Iron SA, 9.125%, 2007+ 306,000 170
400M Euramax International PLC, 11.25%, 2006 408,000 226
250M WCI Steel, Inc., 10%, 2004 255,625 142
300M Wells Aluminum Corp., 10.125%, 2005 295,500 164
400M Wheeling-Pittsburgh Corp., 9.25%, 2007 380,000 211
- --------------------------------------------------------------------------------------
1,645,125 913
- --------------------------------------------------------------------------------------
MISCELLANEOUS--2.7%
500M Kindercare Learning Centers, Inc., 9.50%, 2009 480,000 266
- --------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
EXECUTIVE INVESTORS HIGH YIELD FUND
June 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
PRINCIPAL INVESTED
AMOUNT FOR EACH
OR $10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
PAPER/FOREST PRODUCTS--8.9%
$ 400M Packaging Corp. of America, 9.625%, 2009+ $ 408,000 $ 226
350M Riverwood International Corp., 10.25%, 2006 356,563 198
350M S.D. Warren Co., 12%, 2004 373,625 207
417M S.D. Warren Co., 14%, 2006 477,637 265
- --------------------------------------------------------------------------------------
1,615,825 896
- --------------------------------------------------------------------------------------
REAL ESTATE/CONSTRUCTION--.9%
400M Cathay International, Ltd., 13%, 2008+ 156,000 86
- --------------------------------------------------------------------------------------
RETAIL - FOOD/DRUG--1.3%
250M Stater Brothers Holdings, Inc., 9%, 2004 241,250 134
- --------------------------------------------------------------------------------------
RETAIL - GENERAL MERCHANDISE--1.7%
300M Big 5 Corp., 10.875%, 2007 304,500 169
- --------------------------------------------------------------------------------------
TELECOMMUNICATIONS--16.2%
500M 21st Century Telecommunications Group, Inc.,
0% - 12.25%, 2008 216,250 120
350M CAI Wireless Systems, Inc., 0%, 2004 173,250 96
450M E. Spire Communications, Inc., 0% - 13%, 2005 266,625 148
500M Facilicom International, Inc., 10.50%, 2008 390,000 216
500M McCaw International, Ltd., 0% - 13%, 2007 310,000 172
250M Netia Holdings BV, 10.25%, 2007 218,125 121
250M Netia Holdings BV, 0% - 11.25%, 2007 156,875 87
400M Pac-West Telecomm, Inc., 13.50%, 2009+ 401,000 222
400M PowerTel, Inc., 0% - 12%, 2006 322,000 178
200M Qwest Communications International, Inc.,
0% - 9.47%, 2007 154,500 86
500M RCN Corp., 0% - 11%, 2008 311,250 172
- --------------------------------------------------------------------------------------
2,919,875 1,618
- --------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $17,631,562) 16,578,574 9,188
- --------------------------------------------------------------------------------------
COMMON STOCKS--.9%
MEDIA (CABLE TV/BROADCASTING)
1,000 *Echostar Communications Corp. (cost $0) 153,438 85
- --------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
WARRANTS INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
WARRANTS--.4%
MEDIA (CABLE TV/BROADCASTING)--.1%
1,500 *Diva Systems Corp. (expiring 3/1/08)+ $ 18,000 $ 10
- --------------------------------------------------------------------------------------
MINING/METALS--.0%
200 *Gulf States Steel Acquisition Corp. (expiring
4/15/03)+ 2 --
- --------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.3%
9,000 *S.D. Warren Co., Inc. (expiring 12/15/06)+ 45,000 25
- --------------------------------------------------------------------------------------
TELECOMMUNICATIONS--.0%
450 *E. Spire Communications, Inc. (expiring 11/1/05) 4,500 2
400 *McCaw International, Ltd. (expiring 4/15/07)+ 1,000 1
- --------------------------------------------------------------------------------------
5,500 3
- --------------------------------------------------------------------------------------
TOTAL VALUE OF WARRANTS (cost $0) 68,502 38
- --------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--2.9%
$ 500M United States Treasury Note, 7%, 2006 (cost
$534,875) 529,844 294
- --------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $18,166,437) 96.1% 17,330,358 9,605
OTHER ASSETS, LESS LIABILITIES 3.9 712,219 395
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $18,042,577 $ 10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
+ See Note 4
See notes to financial statements
11
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
June 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS--95.2%
ALABAMA--1.6%
$ 250M Coffee Cnty. Public Bldg. Authority, 6.10%,
9/1/2016 $ 267,187 $ 160
- --------------------------------------------------------------------------------------
ARIZONA--2.8%
250M Maricopa County Ind. Dev. Auth. Hosp. Facs. Rev.
(Samaritan Hlth. Svcs.), 7%, 12/1/2016 298,750 179
145M Maricopa County Uni. Sch. Dist. Gen. Oblig. #80
(Chandler), 6.25%, 7/1/2011 161,494 97
- --------------------------------------------------------------------------------------
460,244 276
- --------------------------------------------------------------------------------------
CALIFORNIA--9.8%
230M Golden West Schools Financing Authority Revenue,
5.75%, 8/1/2017 240,637 144
250M San Francisco City & County Parking Auth., 7%,
6/1/2005* 287,187 172
500M San Francisco City & County Redev. Agy. (Moscone
Ctr.), 6.75%, 7/1/2015 552,500 331
250M San Jose Redevelopment Agency, 6%, 8/1/2015 274,063 164
250M Santa Ana Fin. Auth. Lease Rev., 6.25%, 7/1/2015 280,000 168
- --------------------------------------------------------------------------------------
1,634,387 979
- --------------------------------------------------------------------------------------
COLORADO--2.3%
350M Garfield Pitkin & Eagle Cntys. School District
#RE 1, 6.60%, 6/15/2004* 385,000 231
- --------------------------------------------------------------------------------------
CONNECTICUT--2.6%
400M Connecticut Special Tax Oblig. Rev., 6.10%,
10/1/2004* 433,500 260
- --------------------------------------------------------------------------------------
FLORIDA--5.2%
335M Cocoa Water & Sewer Rev., 5.75%, 10/1/2007* 358,869 215
500M Pensacola Airport Rev., 5.60%, 10/1/2017 513,750 308
- --------------------------------------------------------------------------------------
872,619 523
- --------------------------------------------------------------------------------------
ILLINOIS--10.6%
500M Chicago Board of Education, 6.25%, 12/1/2012 552,500 331
500M Chicago General Obligation, 6%, 7/1/2005* 542,500 325
- --------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
ILLINOIS (continued)
$ 500M Illinois Dev. Fin. Auth. (Rockford School #205),
6.55%, 2/1/2009 $ 560,000 $ 335
100M Will County School District General Obligation,
7.10%, 12/1/2009 116,500 70
- --------------------------------------------------------------------------------------
1,771,500 1,061
- --------------------------------------------------------------------------------------
MAINE--1.6%
250M Maine Municipal Bond Bank, 6.50%, 11/1/2014 272,500 163
- --------------------------------------------------------------------------------------
MASSACHUSETTS--3.2%
500M Mass. Bay Transportation Auth. Gen. Sys. Rev.,
5.80%, 3/1/2013 533,125 319
- --------------------------------------------------------------------------------------
MICHIGAN--2.0%
1,000M Howell Public Schools General Obligation, Zero
Coupon, 5/1/2006* 331,250 198
- --------------------------------------------------------------------------------------
MISSOURI--4.7%
200M Liberty Sewer System Rev., 6.15%, 2/1/2015 215,250 129
500M Missouri State Health & Educational Facilities
Auth. (BJC Health System), 6.75%, 5/15/2010 572,500 343
- --------------------------------------------------------------------------------------
787,750 472
- --------------------------------------------------------------------------------------
NEW JERSEY--3.1%
485M New Jersey Housing & Mortgage Fin. Rev., 6.55%,
10/1/2010 511,675 307
- --------------------------------------------------------------------------------------
NEW YORK--1.9%
290M New York City Municipal Water Fin. Auth. Rev.,
5.875%, 6/15/2012 312,113 187
- --------------------------------------------------------------------------------------
NORTH CAROLINA--2.7%
430M North Carolina Central Univ. Hsg. Rev., 5.75%,
11/1/2015 450,425 270
- --------------------------------------------------------------------------------------
OHIO--1.6%
250M Lorain County Hosp. Rev. (Catholic Healthcare
Partners), 5.625%, 9/1/2014 259,375 155
- --------------------------------------------------------------------------------------
OKLAHOMA--3.3%
500M Grand River Dam Auth. Rev., 6.25%, 6/1/2011 556,250 333
- --------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
June 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
OREGON--9.6%
$ 500M Oregon State Dept. of Administrative Services
Cert. of Partic., 5.65%, 5/1/2007* $ 530,625 $ 318
500M Salem-Keizer School District #24J, 5%, 6/1/2017 480,625 288
600M Umatilla County Sch. Dist. #008R (Hermiston),
4.65%, 6/15/2009 588,750 353
- --------------------------------------------------------------------------------------
1,600,000 959
- --------------------------------------------------------------------------------------
PENNSYLVANIA--10.8%
525M Erie General Obligation, 5.75%, 5/15/2007* 557,156 334
100M Jeannette School District General Obligation,
6.65%, 6/15/2001* 104,750 63
350M Philaldelphia Water & Wastewater Rev., 6.25%,
8/1/2012 388,500 233
800M Pittsburgh & Allegheny Cnty. Pub. Auth. Sales Tax
Rev., 5%, 2/1/2019 759,000 455
- --------------------------------------------------------------------------------------
1,809,406 1,085
- --------------------------------------------------------------------------------------
PUERTO RICO--6.2%
400M Puerto Rico Commonwealth Hwy. & Transn. Auth.
Rev., 6.25%, 7/1/2014 448,500 269
545M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl.
Facs., 6.25%, 7/1/2016 592,006 355
- --------------------------------------------------------------------------------------
1,040,506 624
- --------------------------------------------------------------------------------------
RHODE ISLAND--1.3%
200M Rhode Island Convention Center Authority, 6.70%,
5/15/2001* 212,750 127
- --------------------------------------------------------------------------------------
TEXAS--8.3%
505M Austin Utility System Rev., 6%, 11/15/2013 547,925 328
500M Harris County General Obligation, 6.50%,
8/15/2013 566,875 340
250M Houston Water Conveyance System Cert. of Partic.,
6.25%, 12/15/2012 276,563 166
- --------------------------------------------------------------------------------------
1,391,363 834
- --------------------------------------------------------------------------------------
TOTAL VALUE OF MUNICIPAL BONDS (cost $14,826,391) 15,892,925 9,523
- --------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM TAX EXEMPT INVESTMENTS--3.0%
FLORIDA
$ 500M Dade County Florida Aviation Fac. Rev. Adjustable
Rate Note, 3.30% (cost $500,000)** $ 500,000 $ 299
- --------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $15,326,391) 98.2% 16,392,925 9,822
OTHER ASSETS, LESS LIABILITIES 1.8 296,506 178
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $16,689,431 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Muncipal Bonds which have been prerefunded are shown maturing at the
prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset weekly by
the issuer. Interest rate shown is the rate in effect at June 30, 1999.
See notes to financial statements
15
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
EXECUTIVE INVESTORS TRUST
June 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $ 3,563,862 $ 18,166,437 $ 15,326,391
--------------- --------------- ---------------
--------------- --------------- ---------------
At value (Note 1A)................... $ 5,227,866 $ 17,330,358 $ 16,392,925
Cash................................... 173,985 258,902 228,680
Receivables:
Interest and dividends............... 2,954 404,038 216,953
Investment securities sold........... 88,986 204,250 --
Trust shares sold.................... 371 29,963 --
Other assets........................... -- 4,966 --
--------------- --------------- ---------------
Total Assets........................... 5,494,162 18,232,477 16,838,558
--------------- --------------- ---------------
LIABILITIES
Payables:
Trust shares redeemed................ 100 16,399 77,162
Dividends payable.................... -- 139,597 65,012
Investment securities purchased...... 107,269 -- --
Accrued expenses....................... 5,118 25,742 4,060
Accrued advisory fee................... 1,243 8,162 2,893
--------------- --------------- ---------------
Total Liabilities...................... 113,730 189,900 149,127
--------------- --------------- ---------------
NET ASSETS............................. $ 5,380,432 $ 18,042,577 $ 16,689,431
--------------- --------------- ---------------
--------------- --------------- ---------------
NET ASSETS CONSIST OF:
Capital paid in........................ $ 3,384,844 $ 20,497,378 $ 15,579,744
Undistributed net investment income.... 3,389 96,696 10,952
Accumulated net realized gain (loss) on
investment transactions.............. 328,195 (1,715,418) 32,201
Net unrealized appreciation
(depreciation) in value of
investments.......................... 1,664,004 (836,079) 1,066,534
--------------- --------------- ---------------
Total.................................. $ 5,380,432 $ 18,042,577 $ 16,689,431
--------------- --------------- ---------------
--------------- --------------- ---------------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 196,961 2,478,428 1,191,561
------- --------------- ---------------
------- --------------- ---------------
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE (Net assets divided by
trust shares outstanding)............ $ 27.32 $ 7.28 $ 14.01
------ ----- ------
------ ----- ------
MAXIMUM OFFERING PRICE PER SHARE
(Net asset value/.9525)*............. $ 28.68 $ 7.64 $ 14.71
------ ----- ------
------ ----- ------
</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, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest............................. $ 1,401 $ 963,059 $ 463,769
Dividends............................ 30,058 -- --
------------- ------------- -------------
Total income........................... 31,459 963,059 463,769
------------- ------------- -------------
Expenses (Notes 1 and 3):
Advisory fee......................... 25,345 93,749 86,656
Distribution plan expenses........... 12,672 46,874 36,829
Shareholder servicing costs.......... 3,013 10,044 5,091
Professional fees.................... 1,029 5,853 5,120
Custodian fees....................... 2,686 2,226 3,322
Reports and notices to
shareholders....................... 1,469 4,398 1,868
Other expenses....................... 187 302 873
------------- ------------- -------------
Total expenses......................... 46,401 163,446 139,759
Less: Expenses waived or assumed....... (19,255) (56,249) (68,943)
Custodian fees paid indirectly.... (2,030) (726) (2,095)
------------- ------------- -------------
Net expenses........................... 25,116 106,471 68,721
------------- ------------- -------------
Net investment income.................. 6,343 856,588 395,048
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 2):
Net realized gain (loss) on
investments.......................... 328,422 (48,175) 32,201
Net unrealized appreciation
(depreciation) of investments........ 157,598 (446,646) (709,209)
------------- ------------- -------------
Net gain (loss) on investments......... 486,020 (494,821) (677,008)
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............ $ 492,363 $ 361,767 $ (281,960)
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
See notes to financial statements
17
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
EXECUTIVE INVESTORS TRUST
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
BLUE CHIP FUND
---------------------------------
1/1/99 TO 1/1/98 TO
6/30/99 12/31/98
- --------------------------------------- --------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income................ $ 6,343 $ 21,097
Net realized gain (loss) on
investments........................ 328,422 104,448
Net unrealized appreciation
(depreciation) of investments...... 157,598 608,792
--------------- ---------------
Net increase (decrease) in net
assets resulting from
operations....................... 492,363 734,337
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income................ (2,954) (22,710)
Net realized gains................... -- (111,862)
--------------- ---------------
Total distributions................ (2,954) (134,572)
--------------- ---------------
TRUST SHARE TRANSACTIONS(a)
Proceeds from shares sold............ 400,052 1,201,975
Reinvestment of distributions........ 2,757 123,620
Cost of shares redeemed.............. (389,520) (774,927)
--------------- ---------------
Net increase (decrease) from trust
share transactions................. 13,289 550,668
--------------- ---------------
Net increase (decrease) in net
assets........................... 502,698 1,150,433
NET ASSETS
Beginning of period.................. 4,877,734 3,727,301
--------------- ---------------
End of period+....................... $ 5,380,432 $ 4,877,734
--------------- ---------------
--------------- ---------------
+Includes undistributed net investment
income of............................. $ 3,389 --
--------------- ---------------
--------------- ---------------
(a)TRUST SHARES ISSUED AND REDEEMED
Sold................................. 15,357 53,050
Issued for distributions
reinvested......................... 108 5,026
Redeemed............................. (14,913) (33,583)
--------------- ---------------
Net increase (decrease) in trust
shares............................. 552 24,493
--------------- ---------------
--------------- ---------------
</TABLE>
See notes to financial statements
18
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
INSURED
HIGH YIELD FUND TAX EXEMPT FUND
--------------------------------- ---------------------------------
1/1/99 TO 1/1/98 TO 1/1/99 TO 1/1/98 TO
6/30/99 12/31/98 6/30/99 12/31/98
- --------------------------------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income................ $ 856,588 $ 1,666,951 $ 395,048 $ 754,660
Net realized gain (loss) on
investments........................ (48,175) 126,660 32,201 270,022
Net unrealized appreciation
(depreciation) of investments...... (446,646) (1,643,367) (709,209) 157,055
--------------- --------------- --------------- ---------------
Net increase (decrease) in net
assets resulting from
operations........................ 361,767 150,244 (281,960) 1,181,737
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income................ (873,831) (1,691,909) (384,096) (755,255)
Net realized gains................... -- -- -- (270,196)
--------------- --------------- --------------- ---------------
Total distributions................ (873,831) (1,691,909) (384,096) (1,025,451)
--------------- --------------- --------------- ---------------
TRUST SHARE TRANSACTIONS(a)
Proceeds from shares sold............ 1,304,242 3,991,914 1,053,995 2,842,251
Reinvestment of distributions........ 297,778 702,882 182,262 647,163
Cost of shares redeemed.............. (2,003,066) (3,431,181) (789,965) (2,929,454)
--------------- --------------- --------------- ---------------
Net increase (decrease) from trust
share transactions................. (401,046) 1,263,615 446,292 559,960
--------------- --------------- --------------- ---------------
Net increase (decrease) in net
assets............................ (913,110) (278,050) (219,764) 716,246
NET ASSETS
Beginning of period.................. 18,955,687 19,233,737 16,909,195 16,192,949
--------------- --------------- --------------- ---------------
End of period+....................... $ 18,042,577 $ 18,955,687 $ 16,689,431 $ 16,909,195
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
+Includes undistributed net investment
income of............................ $ 96,696 $ 113,939 $ 10,952 --
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
(a)TRUST SHARES ISSUED AND REDEEMED
Sold................................. 175,032 505,647 72,312 194,643
Issued for distributions
reinvested......................... 39,946 89,636 12,550 44,423
Redeemed............................. (268,013) (437,480) (54,975) (200,774)
--------------- --------------- --------------- ---------------
Net increase (decrease) in trust
shares............................. (53,035) 157,803 29,887 38,292
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
</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 high total investment return consistent with the
preservation of capital.
HIGH YIELD FUND primarily seeks high current income and secondarily seeks
capital appreciation.
INSURED TAX EXEMPT FUND seeks a high level of interest income that is exempt
from federal income tax and is not a tax preference item for purposes of the
Alternative Minimum 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. Securities traded in the over-the-counter ("OTC") market (including
securities listed on exchanges whose primary market is believed to be OTC) are
valued at the mean between the last bid and asked prices prior to the time when
assets are valued 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, information
with respect to market transactions in comparable securities, 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 services use quotations obtained from investment dealers or brokers for
particular securities being evaluated, information with respect to market
transactions in comparable securities and consider security type, rating, market
condition, yield data and other available information in determining value.
"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 at amortized cost. Securities for which market quotations are
not readily available are valued on a consistent basis at fair value as
determined in good faith by or under the
20
<PAGE>
supervision 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 insurer or 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
regulated 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 December 31,
1998, the High Yield Fund had capital loss carryovers of $1,667,243 of which
$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 normally
declared daily and paid monthly. Dividends from net investment income of the
Blue Chip Fund are normally declared and paid quarterly. Distributions from net
realized capital gains, if any, are normally 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.
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
EXECUTIVE INVESTORS TRUST
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,
1999, The Bank of New York, custodian for the Funds, has provided total credits
in the amount of $4,851 against custodian charges based on the uninvested cash
balances of the Funds.
2. SECURITY TRANSACTIONS--For the six months ended June 30, 1999, purchases and
sales of securities other than short-term tax exempt investments and short-term
securities, were as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Fund Purchases of Sales
- --------------------------------------- ----------- -----------
<S> <C> <C>
Blue Chip Fund......................... $ 2,611,652 $ 2,567,920
High Yield Fund........................ 4,729,682 5,398,702
Insured Tax Exempt Fund................ 12,835,027 13,915,423
</TABLE>
At June 30, 1999, aggregate cost and net unrealized appreciation
(depreciation) of securities for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Gross Gross Net Unrealized
Aggregate Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
- --------------------------------------- ----------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Blue Chip Fund......................... $ 3,563,862 $ 1,692,809 $ 28,805 $ 1,664,004
High Yield Fund........................ 18,166,437 564,662 1,400,741 (836,079)
Insured Tax Exempt Fund................ 15,326,391 1,107,660 41,126 1,066,534
</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
22
<PAGE>
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, 1999, total trustee
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. For the six months ended June 30, 1999, the total advisory fees earned
by EIMCO from all Funds was $205,750 of which $120,206 was waived. In addition,
expenses of $10,165 were assumed by EIMCO.
For the six months ended June 30, 1999, EIC, as underwriter of the Trust,
received $10,076 in commissions from the sale of Trust shares, after allowing
$70,808 to other dealers. Shareholder servicing costs included $13,998 in
transfer agent fees accrued to ADM and $1,460 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 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, 1999, total distribution plan fees accrued to EIC amounted to $96,375
(of which $14,076 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, 1999, the High
Yield Fund held thirteen 144A securities with an aggregate value of $2,981,876.
These securities represent 16.5% 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.
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>
L
-------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
NET ASSET ----------------------------------------------- LESS DISTRIBUTIONS 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
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
1998..... 21.68 .11 3.74 3.85 .12 .58 .70
1999**... 24.83 .03 2.48 2.51 .02 -- .02
- ------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD FUND
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
1998..... 8.10 .67 (.60) .07 .68 -- .68
1999**... 7.49 .35 (.21) .14 .35 -- .35
- ------------------------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND
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
1998..... 14.41 .66 .39 1.05 .66 .24 .90
1999**... 14.56 .33 (.56) (.23) .32 -- .32
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized
* Calculated without sales charges.
** For the period January 1, 1999 to June 30, 1999.
+ 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.
L
<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 NET NET PORTFOLIO
--------- TOTAL NET ASSETS INVESTMENT INVESTMENT TURNOVER
END RETURN* END OF PERIOD EXPENSES INCOME EXPENSES INCOME RATE
OF PERIOD (%) (IN MILLIONS) (%) (%) (%) (%) (%)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
1994..... $ 12.75 (1.21) $ 1 .50 1.82 2.54 (.22) 89
1995..... 16.32 36.30 1 .50 1.99 2.20 .29 33
1996..... 18.36 20.62 2 .75 1.33 2.28 (.20) 50
1997..... 21.68 26.58 4 .75 .92 2.03 (.36) 163
1998..... 24.83 17.81 5 .92 .49 1.84 (.43) 96
1999**... 27.32 10.09 5 1.00(a) .25(a) 1.75(a) (.50)(a) 52
- --------------------------------------------------------------------------------------------------------------------------
HIGH YIELD FUND
1994..... $ 6.98 (2.32) $ 15 1.33 9.45 1.88 8.90 53
1995..... 7.59 19.08 16 1.35 9.52 1.90 8.97 69
1996..... 7.89 13.69 17 1.22 9.38 1.82 8.78 27
1997..... 8.10 12.03 19 1.22 8.68 1.82 8.08 49
1998..... 7.49 .86 19 1.25 8.54 1.83 7.96 41
1999**... 7.28 1.86 18 1.14(a) 9.14(a) 1.74(a) 8.54(a) 26
- --------------------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND
1994..... $ 12.53 (3.95) $ 10 .50 5.39 1.80 4.09 215
1995..... 14.04 20.53 13 .50 5.35 1.74 4.11 147
1996..... 13.82 4.11 15 .75 4.85 1.71 3.89 116
1997..... 14.41 10.30 16 .75 4.80 1.71 3.84 126
1998..... 14.56 7.39 17 .80 4.50 1.73 3.57 172
1999**... 14.01 (1.61) 17 .80(a) 4.56(a) 1.58(a) 3.78(a) 77
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized
* Calculated without sales charges.
** For the period January 1, 1999 to June 30, 1999.
+ 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, 1999, 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, 1999 and the year ended
December 31, 1998 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, 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
Blue Chip, High Yield and Insured Tax Exempt Funds at June 30, 1999, 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 30, 1999
26
<PAGE>
EXECUTIVE INVESTORS TRUST
TRUSTEES
- --------------------------------
JAMES J. COY (Emeritus)
GLENN O. HEAD
KATHRYN S. HEAD
LARRY R. LAVOIE
REX R. REED
HERBERT RUBINSTEIN
NANCY S. SCHAENEN
JAMES M. SRYGLEY
JOHN T. SULLIVAN
ROBERT F. WENTWORTH
OFFICERS
- --------------------------------
GLENN O. HEAD
President
DENNIS T. FITZPATRICK
Vice 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
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EXECUTIVE INVESTORS TRUST
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.
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[LOGO] First Investors
95 Wall Street
New York, New York 10005
EIHY107
