<PAGE>
[PHOTO]
[PHOTO]
[PHOTO]
The Concert
Investment Series
Semi-Annual Report
APRIL 30, 1999
1
<PAGE>
Table of Contents
Letter to Shareholders ..................................................... 1
The Concert Investment Series Funds
Emerging Growth Fund ................................................. 3
Government Fund ...................................................... 8
Growth Fund .......................................................... 12
Growth and Income Fund ............................................... 16
International Equity Fund ............................................ 21
Mid Cap Fund ......................................................... 26
Municipal Bond Fund .................................................. 28
Schedules of Investments ................................................... 32
Statements of Assets and Liabilities ....................................... 66
Statements of Operations.................................................... 70
Statements of Changes in Net Assets......................................... 72
Notes to Financial Statements .............................................. 76
Financial Highlights ....................................................... 86
Management of the Series ................................................... 100
<PAGE>
[PHOTO]
HEATH B.
McLENDON
Chairman
Concert Investment Series
Dear Shareholder:
We are pleased to present the semi-annual report for the Concert Investment
Series for the period ended April 30, 1999. The performance and current holdings
of each Fund are discussed in greater detail on the following pages. The first
chart below lists the total return for the six months ended April 30, 1999 for
six of the Funds. The second chart lists the total returns from inception
through April 30, 1999 for the Mid Cap Fund. We hope you find this report to be
useful and informative.
The Performance of the
Concert Investment Series Funds(1)
Class A Shares Total Returns for the
Six Months Ended April 30, 1999
WITHOUT WITH SALES
SALES CHARGES(2) CHARGES(3)
Emerging Growth Fund 25.59% 19.32%
Government Fund (1.35) (5.77)
Growth Fund 27.67 21.28
Growth and Income Fund 18.13 12.20
International Equity Fund 25.98 19.66
Municipal Bond Fund 1.18 (3.38)
The Performance of the New
Mid Cap Fund(1)
Class A Shares Total Return since March 15, 1999 (Inception) through April 30,
1999
WITHOUT WITH SALES
SALES CHARGES(2) CHARGES(3)
Mid Cap Fund 3.25% (1.92)%
The Concert Investment Series:
What We Believe
The Concert Investment Series Funds provide you with personal attention,
combined with experienced portfolio management. Our goal is to seek consistent,
long-term performance while managing risk. All of our Funds incorporate these
key beliefs:
We are committed to putting our clients' interests first.
Our job is to help investors achieve their goals without compromising their
objectives and tolerances for risk.
Flexibility contributes to better investment strategies.
Our Funds and our management expertise cover the entire spectrum of risks and
returns. Every Fund can be combined with other selections from the Concert
Investment Series to create a comprehensive, personalized investment strategy.
Consistent performance is earned daily.
We are committed to delivering competitive, long-term performance, rather than
short-term results. We believe that this is one of the surest routes to building
wealth over time.
Conservative management is effective management.
We place a strong emphasis on managing risk over the long term. Our portfolios
are diversified among a broad range of securities.
Experience is key.
Concert Investment Series portfolio managers have an average of over 20 years of
investment experience.
- ----------
(1) Performance numbers for the other classes of shares can be found after
each Manager's Commentary.
(2) These total return figures do not reflect the deduction of a sales charge
for each Fund's Class A shares.
(3) These total return figures assume reinvestment of all dividends and
reflect the deduction of the maximum front-end sales charge for each
Fund's Class A shares: up to 5.00% for the Emerging Growth Fund, Growth
and Income Fund, International Equity Fund, Mid Cap Fund and Growth Fund;
up to 4.50% with respect to the Government Fund and Municipal Bond Fund.
In addition, both columns of data represent past performance, which is not
indicative of future results. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
- --------------------------------------------------------------------------------
The Concert Investment Series 1
<PAGE>
There is no substitute for personal service.
The Concert Investment Series is centered on a strong commitment to deliver our
clients only the highest quality personal service.
Market Commentary
The reporting period saw a continuation of the strong economic conditions that
have existed in the U.S. for more than seven years. Lower short-term interest
rates appear to have helped U.S. businesses cope better with the effects of the
global credit and currency crisis that began in Asia in 1997, and spread to
Russia and parts of Latin America in 1998. During this period, U.S. consumer
spending remained high, the rate of unemployment was low and inflationary
pressures continued to be virtually nonexistent.
While most overseas markets did not match the economic strength of the U.S.,
many of their economies appear to have improved in the latter stages of the
reporting period. In our view, lower short-term interest rates adopted by
central banks worldwide in the fall of 1998 have helped many countries improve
their economic conditions. This was especially true in Japan, Asia, Latin
America and Eastern Europe, areas that had previously borne the full brunt of
the global currency and credit crisis.
These economic conditions produced mixed results for fixed-income securities
during the reporting period. U.S. Treasury securities, which rallied strongly
last summer when the stock market and other bond markets declined sharply, gave
back some of their gains. However, other types of bonds performed better, as
investors shifted assets back into bond market sectors they had previously
avoided, including corporate bonds, mortgage-backed securities, asset-backed
securities and foreign bonds. Once again, strong economic data combined with
historically low inflation pressures left many fixed-income investors with
little to do. In our view, the continued strength of the equity markets acted to
settle down the bond markets during the latter stages of the reporting period.
Municipal bonds, along with many other financial assets, have benefited from the
high-growth, low-inflation U.S. economy. As with other kinds of bonds, municipal
bond yields have declined, but their real rate of return (i.e., the rate of
return after subtracting the effects of inflation) has remained historically
high.
Through April 1999, the major stock market indices extended their gains as the
majority of economic data affirmed that the forces sustaining the economic
expansion remained intact. On March 29, 1999, the Dow Jones Industrial Average
jumped 184.54, or 1.88%, to climb past the historic 10,000 milestone. In
addition, surprising U.S. economic strength, together with growing optimism
regarding global growth, forced positive revisions to estimates of Gross
Domestic Product ("GDP") and most corporate profits. Although in previous months
indications of strong U.S. economic growth in the face of tepid global growth
caused a sense of relief among many investors, this relief gradually gave way to
inflation-linked anxieties as signs emerged confirming stabilization in
previously troubled emerging markets.
Many investment professionals have also recently sounded a note of caution
regarding the price of stocks, especially large-company, Internet and technology
issues. There is growing concern that corporate earnings may not be strong
enough to sustain current stock prices. In addition, with inflation and interest
rates at historic lows, U.S. stocks remain vulnerable to any negative surprises.
As always, we welcome your suggestions on how we can better serve you. Thank you
for your support and confidence in our investment management approach. We look
forward to continuing to help you gain greater financial independence in the
years to come.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
Concert Investment Series
May 28, 1999
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2 1999 Semi-Annual Report to Shareholders
<PAGE>
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Emerging Growth Fund
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The Emerging Growth Fund ("Fund") seeks capital appreciation. The Fund invests
in common stocks of small- and medium-sized companies considered by the manager
to be "emerging growth" companies.* These are primarily domestic companies, in
the early stages of their life cycles, characterized by relatively high earnings
growth. The manager selects investments from among companies that have market
capitalizations in the lowest 25% of all publicly traded U.S. companies.
Portfolio Manager:
Sandip A. Bhagat, CFA
[PHOTO]
Assumed management:
December 31, 1997
Investment experience:
More than ten years
Background: Joined Travelers in 1987. Extensive portfolio management experience
in quantitative investment management. Formerly a Vice President at Mandell
Institute, Inc., a research & development think-tank.
Education: B.S., Chemical Engineering, University of Bombay; M.S., Chemical
Engineering, University of Connecticut; M.B.A., Finance, University of
Connecticut
Fund Update
For the six months ended April 30, 1999, the Fund's Class A shares returned
25.59% without sales charge, outperforming the Russell 2000 Stock Index by
15.16% the same period. In this market commentary, we review stock market
activity, portfolio holdings and investment performance for the Fund from
November 1998 to April 1999.
A proactive and aggressive stance by the Federal Reserve Board ("Fed") halted
the stock market slide early in the fourth quarter of 1998 and sent stock prices
soaring in November and December. The fourth quarter rally erased losses from
the third quarter and most market measures reached new all-time highs. The
market was also helped by economic reports in the fourth quarter, which were
well ahead of expectations. Fourth quarter Gross Domestic Product ("GDP") growth
was eventually reported at 6.0%, but interest rates remained low, mainly as a
result of low inflation.
Stock market volatility remained high in early 1999 as a new threat to global
financial markets emerged in Latin America in January. The devaluation of the
Brazilian currency raised concerns for U.S. companies with exposure to Latin
America and took a temporary toll on the stock market in the middle of January.
Interest rate concerns dominated market psychology during February.
First quarter GDP grew at a rate of 4.5%, well above the consensus forecast of
3.5%. Despite low inflation, interest rates moved higher amid fears of Fed
tightening in response to the strong U.S. economy. In February, the yield on the
30-year Treasury bond moved from 5.18% to 5.55%.
Evidence of stronger-than-expected economic growth prompted hopes of a
meaningful earnings recovery and, at the same time, triggered concerns about
further increases in interest rates. Both implications led to a furious rally in
value stocks and, to a lesser extent, in small-cap stocks during the month of
April.
Our stock selection is based on an investment philosophy that favors companies
that are able to grow earnings above consensus expectations, yet offer
attractive relative value. In order to achieve consistent relative performance,
the
- ----------
* The Fund's objective is suitable for investors who are willing to hold
their shares through periods of market fluctuations and the accompanying
changes in share values. Investors in this Fund must be comfortable with
the greater volatility of a fund that invests in small- and medium-sized
companies. Investment results and the principal value of an investment
will fluctuate. When shares are redeemed, they may be worth more or less
than their original cost.
- --------------------------------------------------------------------------------
The Concert Investment Series 3
<PAGE>
Fund is managed to mirror the overall risk and sector weightings of the universe
of smaller-size companies.
We experienced our most favorable performance relative to the benchmark in the
technology, health care and energy sectors. We lost ground relative to the
benchmark in the consumer discretionary sector. The technology sector in the
small-cap universe was strong during the six-month period under review. The
Internet group was particularly strong, especially in late 1998 and early 1999.
The Fund benefited from a number of modest positions within the Internet sector.
Our holdings within this group included browser and search engine companies such
as Lycos, Excite and DoubleClick, as well as online trading plays such as
E*TRADE Group.
Investor preference shifted dramatically from growth stocks trading at extremely
high P/E ratios into value stocks towards the end of the period. In late 1998,
small-cap growth companies, such as Network Appliances, performed well; while in
March and April, investors focused on low P/E, out-of-favor value stocks, such
as Comdisco, Sawtek, VLSI Technology and Platinum Technology, helped portfolio
performance. Our disappointments in the technology sector included Read-Rite and
Intelligroup, which both reported surprisingly large negative earnings results
in the first quarter of 1999.
In the health care sector, our holdings in Visx Inc., a manufacturer of
corrective vision systems, and Icos Corp., a small biotech drug company,
performed well as earnings expectations continued to move higher. The energy
sector experienced a spectacular revival towards the end of the period as oil
prices bottomed out. Several stocks in the energy services group rose by over
50% in March and April. The Fund held modest positions in this sector including
Smith International, Weatherford International and Barrett Resources, stocks
that outperformed the overall group.
Performance was adverse relative to the small-cap universe in the consumer
discretionary sector. We were hurt by a decline in the expected earnings growth
rate of Safeskin, a maker of disposable gloves and Romac International, a
professional staffing company. On a positive note, our positions in Abercrombie
& Fitch, a specialty retailer, and Abacus Direct, a provider of services in the
direct market industry, produced strong gains for the period.
Small-cap stocks have underperformed large-cap stocks significantly over the
last several months. Based on the severe disparity in relative performance
between these groups over the last several years, the recent reversal into
small-cap and value stocks could persist well into the rest of the year. We
thank you for your participation in the Emerging Growth Fund.
Please see pages five and six for additional Fund performance information.
- --------------------------------------------------------------------------------
4 1999 Semi-Annual Report to Shareholders
<PAGE>
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Emerging Growth Fund
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- --------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $20.28 $23.87 $ 0.00 $ 1.53 25.73%+
- -------------------------------------------------------------------------------------------------------
10/31/98 22.15 20.28 0.00 0.21 (7.52)
- -------------------------------------------------------------------------------------------------------
10/31/97 18.59 22.15 0.00 0.00 19.15
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 17.89 18.59 0.00 0.00 3.91+
=======================================================================================================
Total $ 0.00 $ 1.74
=======================================================================================================
</TABLE>
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Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $20.15 $23.68 $ 0.00 $ 1.53 25.59%+
- -------------------------------------------------------------------------------------------------------
10/31/98 22.08 20.15 0.00 0.21 (7.81)
- -------------------------------------------------------------------------------------------------------
10/31/97 18.57 22.08 0.00 0.00 18.90
- -------------------------------------------------------------------------------------------------------
10/31/96 15.12 18.57 0.00 0.00 22.82
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/95 11.81 15.12 0.00 0.00 28.11+
=======================================================================================================
Total $ 0.00 $ 1.74
=======================================================================================================
</TABLE>
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Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $19.60 $22.89 $ 0.00 $ 1.53 25.07%+
- -------------------------------------------------------------------------------------------------------
10/31/98 21.63 19.60 0.00 0.21 (8.45)
- -------------------------------------------------------------------------------------------------------
10/31/97 18.34 21.63 0.00 0.00 17.94
- -------------------------------------------------------------------------------------------------------
10/31/96 15.04 18.34 0.00 0.00 21.94
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/95 11.81 15.04 0.00 0.00 27.43+
=======================================================================================================
Total $ 0.00 $ 1.74
=======================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
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The Concert Investment Series 5
<PAGE>
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Emerging Growth Fund
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- --------------------------------------------------------------------------------
Average Annual Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/99+ 25.73% 25.59% 25.07%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 1.83 1.55 0.79
- --------------------------------------------------------------------------------
Inception* through 4/30/99 14.30 20.24 19.34
================================================================================
Without Sales Charges(2)
-------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/99+ 15.06% 19.32% 20.07%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 (6.84) (3.52) (3.91)
- --------------------------------------------------------------------------------
Inception* through 4/30/99 10.64 18.78 19.20
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (Inception* through 4/30/99) 43.97%
- --------------------------------------------------------------------------------
Class A (Inception* through 4/30/99) 116.46
- --------------------------------------------------------------------------------
Class B (Inception* through 4/30/99) 109.71
================================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales charges with respect to Class 1 and Class A shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class B shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class 1 and Class A shares reflect
the deduction of the current maximum sales charge of 8.50% and 5.00%,
respectively; Class B shares reflect the deduction of a 5.00% CDSC, which
applies if shares are redeemed within one year from purchase. This CDSC
declines by 1.00% per year until no CDSC is incurred.
* Inception date for Class 1 is August 8, 1996. Inception date for Class A
and B is February 21, 1995.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
- --------------------------------------------------------------------------------
6 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Emerging Growth Fund at a Glance (unaudited)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Class A and B Shares of the
Emerging Growth Fund vs. Russell 2000 Stock Index+
- --------------------------------------------------------------------------------
February 1995 -- April 1999
[LINE GRAPH]
<TABLE>
<CAPTION>
Emerging Growth Fund -- Class A Emerging Growth Fund -- Class B Russell 2000 Stock Index
<S> <C> <C> <C>
2/21/95 9,449 10,000 10,000
10/31/95 12,104 12,243 11,835
10/31/96 14,856 15,129 13,801
10/31/97 17,664 18,015 17,850
10/31/98 16,284 16,568 15,737
4/30/99 20,451 20,871 18,122
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class A and B shares on
February 21, 1995 (inception date), assuming deduction of the maximum
5.50% sales charge at the time of investment for Class A shares and the
deduction of the maximum 5.00% CDSC for Class B shares. It also assumes
reinvestment of dividends and capital gains, if any, at net asset value
through April 30, 1999. The Russell 2000 Stock Index is a capitalization
weighted total return index which is comprised of 2,000 of the smallest
capitalized U.S. domiciled companies with less than average growth
orientation whose common stock is traded in the United States and the New
York Stock Exchange, American Stock Exchange and Nasdaq. The index is
unmanaged and is not subject to the same management and trading expenses
as a mutual fund. The performance of the Fund's other class may be greater
or less than Class A and B shares' performance indicated on this chart,
depending on whether greater or lesser sales charges and fees were
incurred by shareholders investing in other classes.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption values may be more or less than the original cost. No
adjustment has been made for shareholder tax liability on dividends or
capital gains.
Industry Diversification of Common Stock*
- --------------------------------------------------------------------------------
[BAR GRAPH]
Auto & Transportation 3.8%
Consumer Discretionary 20.2%
Consumer Staples 0.7%
Finance 6.5%
Health Care 13.5%
Materials & Processing 5.3%
Other Energy 2.8%
Producer Durables 5.4%
Technology 36.7%
Utilities 5.1%
* As a percentage of total common stock.
Investment Allocation as of April 30, 1999
- --------------------------------------------------------------------------------
[PIE CHART]
Repurchase Agreement and U.S. Treasury Bills 6.5%
Common Stock 93.5%
- --------------------------------------------------------------------------------
The Concert Investment Series 7
<PAGE>
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Government Fund
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The Government Fund ("Fund") seeks high current return consistent with the
preservation of capital. The Fund invests primarily in government debt
securities issued or guaranteed by the U.S. government, its agencies or
instrumentalities.* These securities include U.S. Treasury securities,
mortgage-related and asset-backed securities. Some government-guaranteed,
mortgage-related securities are backed by the full faith and credit of the U.S.
Treasury; some are supported by the right of the issuer to borrow from the U.S.
government; and some are backed only by the credit of the issuer itself.
Portfolio Manager:
James E. Conroy
[PHOTO]
Assumed management:
December 31, 1997
Investment experience:
21 years
Background: Formerly a portfolio manager for Equitable Asset Management and
I.N.A. Securities.
Education: B.A., Economics, Muhlenberg College
Fund Update
For the six months ended April 30, 1999, the Fund's Class A shares returned a
negative 1.35% without sales charges. In comparison, the Lehman Brothers General
U.S. Government Index had a return of 0.95% during the same period.
In our view, the major issues affecting the bond market during the reporting
period were:
o The ongoing Clinton impeachment hearings
o The war in Kosovo
o The Social Security debate
o The Federal Reserve Board's neutral monetary policy
o A strong U.S. economy with low inflation
o Strong Treasury receipts and less overall U.S. Treasury financing
o Agency benchmark issuance
-- New means of financing
-- Five- and ten-year final maturities
-- Callable in two and three years
The chart below shows the yields on U.S. Treasuries during the reporting period.
Yields on U.S. Treasuries
4/30/99 10/31/98
------- --------
Two-Year U.S. Treasury Note 5.06% 4.26%
Five-Year U.S. Treasury Note 5.21 4.38
Ten-Year U.S. Treasury Bond 5.34 4.75
Thirty-Year U.S. Treasury Bond 5.66 5.23
During the reporting period, we maintained an allocation in the Fund of roughly
30% in U.S. Treasuries and 70% in mortgage-backed securities. The coupons from
the mortgage-backed securities averaged 6 1/2% and our Treasury holdings were
generally focused in the ten-year maturity range and longer dated zero coupon
bonds. As of April 30, 1999, the Fund's duration was roughly six and one-half
years and approximated its benchmark.
We believe that the long bond will probably trade in a range between 5% and 6%
in the coming months. In addition, we also think there is a roughly 40% chance
that rates will go lower and stay around 5%. In our view, the least likely
scenario for the bond market would be for rates to head higher than 6 1/4%.
Please see pages nine and ten for additional Fund performance information.
- ----------
* Investment return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Fund shares are not deposits or obligations of, or insured or guaranteed
by the U.S. government, any financial institution, the Federal Deposit
Insurance Corporation or any other agency, entity or person.
- --------------------------------------------------------------------------------
8 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Government Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $10.66 $10.23 $ 0.31 $ 0.00 (1.12)%+
- -------------------------------------------------------------------------------------------------------
10/31/98 10.58 10.66 0.67 0.00 7.29
- -------------------------------------------------------------------------------------------------------
10/31/97 10.40 10.58 0.68 0.00 8.56
- -------------------------------------------------------------------------------------------------------
10/31/96 10.67 10.40 0.72 0.00 4.58
- -------------------------------------------------------------------------------------------------------
10/31/95 9.99 10.67 0.70 0.00 14.27
- -------------------------------------------------------------------------------------------------------
10/31/94 11.80 9.99 0.69 0.45 (5.45)
- -------------------------------------------------------------------------------------------------------
10/31/93 11.56 11.80 0.76 0.19 10.55
- -------------------------------------------------------------------------------------------------------
10/31/92 11.47 11.56 0.86 0.07 9.32
- -------------------------------------------------------------------------------------------------------
10/31/91 10.79 11.47 0.90 0.00 15.16
- -------------------------------------------------------------------------------------------------------
10/31/90 11.46 10.79 0.96 0.22 4.94
- -------------------------------------------------------------------------------------------------------
10/31/89 11.13 11.46 1.03 0.00 12.87
=======================================================================================================
Total $ 8.28 $ 0.93
=======================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $10.66 $10.22 $0.30 $0.00 (1.35)%+
- -------------------------------------------------------------------------------------------------------
10/31/98 10.58 10.66 0.64 0.00 7.00
- -------------------------------------------------------------------------------------------------------
10/31/97 10.41 10.58 0.66 0.00 8.35
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 10.32 10.41 0.15 0.00 2.36+
=======================================================================================================
Total $1.75 $0.00
=======================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $10.66 $10.23 $0.26 $0.00 (1.63)%+
- -------------------------------------------------------------------------------------------------------
10/31/98 10.58 10.66 0.56 0.00 6.20
- -------------------------------------------------------------------------------------------------------
10/31/97 10.41 10.58 0.59 0.00 7.55
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 10.32 10.41 0.14 0.00 2.18+
=======================================================================================================
Total $1.55 $0.00
=======================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends monthly and capital gains, if
any, annually.
- --------------------------------------------------------------------------------
The Concert Investment Series 9
<PAGE>
- --------------------------------------------------------------------------------
Government Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/99+ (1.12)% (1.35)% (1.63)%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 2.63 2.25 1.57
- --------------------------------------------------------------------------------
Five Years Ended 4/30/99 6.47 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 4/30/99 7.61 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 4/30/99 7.18 6.25 5.48
================================================================================
Without Sales Charges(2)
-------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/99+ (7.78)% (5.77)% (5.95)%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 (4.33) (2.36) (2.77)
- --------------------------------------------------------------------------------
Five Years Ended 4/30/99 5.00 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 4/30/99 6.86 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 4/30/99 6.56 4.45 4.48
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (4/30/89 through 4/30/99) 108.25%
- --------------------------------------------------------------------------------
Class A (Inception* through 4/30/99) 17.96
- --------------------------------------------------------------------------------
Class B (Inception* through 4/30/99) 15.67
================================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales charge with respect to Class 1 and Class A shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class B shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class 1 and Class A shares reflect
the deduction of the current maximum sales charge of 6.75% and 4.50%,
respectively; Class B shares reflect the deduction of a 4.50% CDSC, which
applies if shares are redeemed within one year from purchase. This CDSC
declines by 0.50% the first year of purchase and thereafter by 1.00% per
year until no CDSC is incurred.
* Inception date for Class 1 is April 14, 1987. Inception date for Class A
and B is August 8, 1996.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
- --------------------------------------------------------------------------------
10 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Government Fund at a Glance (unaudited)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Class 1 Shares of the Government Fund
vs. Lehman Brothers General U.S. Government Index and
Merrill Lynch U.S. Treasury 5-10 Years Index+
- --------------------------------------------------------------------------------
April 1989 -- April 1999
[LINE GRAPH]
<TABLE>
<CAPTION>
Lehman Brothers General Merrill Lynch U.S. Treasury
Growth Fund -- Class 1 Shares U.S. Government Index++ 5-10 Years Index++
<S> <C> <C> <C>
4/89 9,327 10,000 10,000
10/89 10,221 11,203 11,044
10/90 10,726 11,867 11,687
10/91 12,352 13,600 13,530
10/92 13,503 15,005 15,141
10/93 14,928 16,975 17,305
10/94 14,114 16,216 16,264
10/95 16,127 18,710 19,184
10/96 16,866 19,668 20,086
10/97 18,310 21,371 21,898
10/98 19,644 23,783 24,847
4/99 19,424 24,009 24,356
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class 1 shares on April
30, 1989, assuming deduction of the maximum 6.75% sales charge at the time
of investment and the reinvestment of dividends and capital gains, if any,
at net asset value through April 30, 1999. The Lehman Brothers General
U.S. Government Index includes U.S. treasuries and agencies with
maturities of one year or greater having a minimum outstanding principal
of $100 million and are only fixed coupon securities. The index is
unmanaged and is not subject to the same management and trading expenses
as a mutual fund. The performance of the Fund's other classes may be
greater or less than the Class 1 shares' performance indicated on this
chart, depending on whether greater or lesser sales charges and fees were
incurred by shareholders investing in the other classes.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption values may be more or less than the original cost. No
adjustment has been made for shareholder tax liability on dividends or
capital gains.
++ It is the opinion of management that the Merrill Lynch U.S. Treasury 5-10
Years Index is a more appropriate broad-based benchmark for the market in
which the Government Fund invests, rather than the Lehman Brothers General
U.S. Government Index. In future reporting, the Merrill Lynch U.S.
Treasury 5-10 Years Index will be used as a basis of comparison of total
return performance rather than the Lehman Brothers General U.S. Government
Index. The Merrill Lynch U.S. Treasury 5-10 Years Index consists of bonds
with an outstanding par which is greater than or equal to $25 million, a
maturity ranging between 5 and 10 years and have fixed rate coupons
greater than 4.25%. The index is unmanaged and is not subject to the same
management and trading expenses as a mutual fund.
Investment Breakdown*
- --------------------------------------------------------------------------------
[PIE CHART]
FNMA & FHLMC 33.9%
U.S. Treasury Notes and Bonds 34.1%
Repurchase Agreement 1.2%
GNMA 30.8%
* As a percentage of total investments.
U.S. Treasury Securities are debt obligations of the United States Government.
They are secured by the full faith and credit of the Federal Government, and
include such instruments as Treasury bonds, notes and bills.
Mortgage-Backed Securities are debt securities issued by U.S. government
agencies such as the Federal Home Loan Mortgage Corporation ("FHLMC"), Federal
National Mortgage Association ("FNMA") and Government National Mortgage
Association ("GNMA"). They represent thousands of individual home mortgages that
are pooled to form securities. As homeowners pay interest and principal each
month, these payments are passed on to investors. Mortgage-backed securities are
backed by the full faith and credit of the issuing agency.
- --------------------------------------------------------------------------------
The Concert Investment Series 11
<PAGE>
- --------------------------------------------------------------------------------
Growth Fund
- --------------------------------------------------------------------------------
The Growth Fund ("Fund") seeks capital appreciation. The Fund invests
principally in U.S. common stocks and other equity securities, typically of
established companies with large market capitalizations.
Portfolio Manager:
Lawrence B. Weissman, CFA
[PHOTO]
Assumed management:
December 31, 1997
Investment experience:
13 years
Background: Joined Salomon Smith Barney in 1997. Previously with Neuberger &
Berman and TIAA-CREF.
Education: B.S., Cornell University;
M.B.A., Columbia University
Fund Update
For the six months ended April 30, 1999, the Fund's Class A shares returned
27.67% without sales charges versus the Standard & Poor's 500 Index return of
22.31% during the same period.
By the beginning of 1999, we had fully restructured the Fund to be more in line
with the Fund's mandate as described by the prospectus. We have built a slightly
more concentrated portfolio of high-quality, well-positioned growth companies.
With a greater growth orientation in the Fund's portfolio, we expect to see
competitive returns in good markets and still have some reasonable downside
protection in down markets. The Fund's performance was achieved despite April's
rotation away from the select group of growth stocks that have been pushing the
stock market to higher levels for the past three years. The rotation that took
place in the stock market in April 1999 was towards stocks that have been out of
favor, such as turn around and cyclical companies. We believe that the Fund's
performance has held up reasonably well under these challenging market
conditions.
During the reporting period, we remained committed to our investment strategy
and continued to focus on maintaining a quality-oriented portfolio that we
believed would provide higher returns with potentially lower risk over time.
However, in February 1999, we reduced our exposure to sectors (mostly
technology) where we believed valuations were extended. This was slightly ahead
of April's sector rotation and, therefore, our actions were reasonably timely.
As we reduced our exposure to technology stocks, we began investing in companies
that were out of favor (and reasonably valued), yet which began to exhibit
improving fundamentals. As the market continues to gyrate, we will seek to take
advantage of volatility by buying stocks on pullbacks and taking profits when
valuations become extended.
As of the end of April 1999, the Fund's portfolio had its largest overweighting
in consumer services (i.e., 13.7% versus a 4.9% weighting in the Index) due to
our large positions in radio and cable. Over this same period, we increased our
exposure to financial stocks with that sector accounting for 18.0% of the Fund's
portfolio versus 16.0% for the Index. Other main areas of focus for the Fund
continue to include technology at 21.0%, and health care at 12.0%. Cash in the
portfolio at the end of April remained low, at 2.1%. The Fund's median market
capitalization was approximately $30 billion and our top ten holdings
represented roughly 24.3 % of the portfolio at the end of the reporting period.
Please see pages thirteen and fourteen for additional Fund performance
information.
- --------------------------------------------------------------------------------
12 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $19.59 $22.97 $0.11 $ 1.82 27.86%+
- -------------------------------------------------------------------------------------------------------
10/31/98 20.94 19.59 0.17 3.41 12.54
- -------------------------------------------------------------------------------------------------------
10/31/97 17.98 20.94 0.18 1.36 26.93
- -------------------------------------------------------------------------------------------------------
10/31/96 17.46 17.98 0.18 2.40 19.94
- -------------------------------------------------------------------------------------------------------
10/31/95 15.31 17.46 0.16 1.03 24.01
- -------------------------------------------------------------------------------------------------------
10/31/94 16.26 15.31 0.11 1.18 2.04
- -------------------------------------------------------------------------------------------------------
10/31/93 16.02 16.26 0.12 1.77 14.27
- -------------------------------------------------------------------------------------------------------
10/31/92 15.47 16.02 0.17 0.80 9.83
- -------------------------------------------------------------------------------------------------------
10/31/91 11.26 15.47 0.22 0.00 39.90
- -------------------------------------------------------------------------------------------------------
10/31/90 13.15 11.26 0.20 0.64 (8.73)
- -------------------------------------------------------------------------------------------------------
10/31/89 10.81 13.15 0.11 0.00 22.70
=======================================================================================================
Total $1.73 $14.41
=======================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $19.54 $22.93 $0.05 $1.82 27.67%+
- -------------------------------------------------------------------------------------------------------
10/31/98 20.89 19.54 0.12 3.41 12.27
- -------------------------------------------------------------------------------------------------------
10/31/97 17.96 20.89 0.16 1.36 26.65
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 16.63 17.96 0.00 0.00 8.00+
=======================================================================================================
Total $0.33 $6.59
=======================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $19.37 $22.69 $0.00 $1.82 27.24%+
- -------------------------------------------------------------------------------------------------------
10/31/98 20.75 19.37 0.00 3.41 11.43
- -------------------------------------------------------------------------------------------------------
10/31/97 17.93 20.75 0.11 1.36 25.66
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 16.63 17.93 0.00 0.00 7.82+
=======================================================================================================
Total $0.11 $6.59
=======================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
- --------------------------------------------------------------------------------
The Concert Investment Series 13
<PAGE>
- --------------------------------------------------------------------------------
Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/99+ 27.86% 27.67% 27.24%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 21.59 21.28 20.40
- --------------------------------------------------------------------------------
Five Years Ended 4/30/99 22.51 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 4/30/99 17.22 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 4/30/99 14.68 28.72 27.76
================================================================================
Without Sales Charges(2)
-------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/99+ 16.99% 21.28% 22.24%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 11.28 15.23 15.40
- --------------------------------------------------------------------------------
Five Years Ended 4/30/99 20.35 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 4/30/99 16.18 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 4/30/99 13.84 26.28 27.02
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (4/30/89 through 4/30/99) 389.64%
- --------------------------------------------------------------------------------
Class A (Inception* through 4/30/99) 97.64
- --------------------------------------------------------------------------------
Class B (Inception* through 4/30/99) 93.68
================================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales charges with respect to Class 1 and Class A shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class B shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class 1 and Class A shares reflect
the deduction of the current maximum sales charge of 8.50% and 5.00%,
respectively; Class B shares reflect the deduction of a 5.00% CDSC, which
applies if shares are redeemed within one year from purchase. This CDSC
declines by 1.00% per year until no CDSC is incurred.
* Inception date for Class 1 is April 14, 1987. Inception date for Class A
and B is August 18, 1996.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
- --------------------------------------------------------------------------------
14 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Growth Fund at a Glance (unaudited)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Class 1 Shares of the
Growth Fund vs. Standard & Poor's 500 Index+
- --------------------------------------------------------------------------------
April 1989 -- April 1999
[LINE GRAPH]
Growth Fund -- Class 1 Shares Standard & Poor's 500 Index
4/89 9,149 10,000
10/89 10,084 11,185
10/90 9,204 10,348
10/91 12,877 13,806
10/92 14,142 15,179
10/93 16,150 17,442
10/94 16,490 18,116
10/95 20,448 22,900
10/96 24,525 28,417
10/97 31,130 37,539
10/98 35,035 45,801
4/99 44,796 56,019
+ Hypothetical illustration of $10,000 invested in Class 1 shares on April
30, 1989, assuming deduction of the maximum 8.50% sales charge at the time
of investment and the reinvestment of dividends and capital gains, if any,
at net asset value through April 30, 1999. The Standard & Poor's 500 Index
("S&P 500 Index") is an index of widely held common stocks listed on the
New York and American Stock Exchanges and the over-the-counter markets.
Figures for the S&P 500 Index include reinvestment of dividends. The index
is unmanaged and is not subject to the same management and trading
expenses of a mutual fund. The performance of the Fund's other classes may
be greater or less than the Class 1 shares' performance indicated on this
chart, depending on whether greater or lesser sales charges and fees were
incurred by shareholders investing in the other classes.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption values may be more or less than the original cost. No
adjustment has been made for shareholder tax liability on dividends or
capital gains.
Industry Diversification of Common Stock*
- --------------------------------------------------------------------------------
[BAR GRAPH]
Consumer Distribution 6.8%
Consumer Non-Durables 5.3%
Consumer Services 14.3%
Energy 6.7%
Finance 18.9%
Health Care 12.5%
Producer Manufacturing 5.0%
Technology 22.0%
Utilities 6.4%
Other 2.1%
* As a percentage of total common stock.
Investment Allocation as of April 30, 1999
- --------------------------------------------------------------------------------
[PIE CHART]
Common Stocks 95.7%
U.S. Government Obligation 2.2%
Repurchase Agreement 2.1%
- --------------------------------------------------------------------------------
The Concert Investment Series 15
<PAGE>
- --------------------------------------------------------------------------------
Growth and Income Fund
- --------------------------------------------------------------------------------
The Growth and Income Fund ("Fund") seeks reasonable growth and income. The Fund
invests in a portfolio consisting principally of equity securities, including
convertible securities that provide dividend or interest income. However, the
Fund may also invest in non-income-producing investments for potential
appreciation in value. The Fund emphasizes U.S. stocks with large market
capitalizations.
Portfolio Manager:
R. Jay Gerken, CFA
[PHOTO]
Assumed management:
December 31, 1997
Investment experience:
More than 18 years
Background: Joined Salomon Smith Barney in 1985. Formerly with Bankers Trust and
Baseline Financial Services.
Education: A.B., Brown University; M.B.A., Harvard University
Fund Update
For the six months ended April 30, 1999, the Class A shares of the Fund returned
18.13% without sales charge, versus the Standard & Poor's 500 Index return of
22.31%. Stock prices climbed steadily over the period, more than making up for
the declines of early October. But all stocks did not perform identically.
Larger-capitalization stock prices increased more quickly than smaller ones for
the entire period. In a change of leadership, however, smaller companies started
to outperform over the last several months. There was also a performance
rotation from growth stocks to value stocks. (Growth stocks have earnings that
are likely to grow faster than the overall market, while value stocks appear
relatively inexpensive.) Over the entire six months, growth stocks generally
outperformed. However, over the last two months of the period, market sentiment
changed again and value stocks outperformed.
We manage the Fund with the outlook of a long-term investor. The Fund is well
diversified and invests in a wide range of industries generally representative
of U.S. large-capitalization stocks. When buying stocks, we believe the critical
investment decision is judging the growth prospects of a company compared to its
current valuation. This trade-off of growth and value can be described as
searching for growth at a reasonable price.
Over the last six months, we have conformed the Fund's portfolio even more
closely to the overall market on both a sector and an individual stock basis.
Since we began management of the Fund in December 1997, we have kept the
portfolio's sector allocations close to those of the overall market. We are
continuing that policy. In addition, we are limiting the percentage the Fund can
invest in any individual stock. First, all stocks are measured versus their
weighting in the overall market. Then, the maximum variance of an individual
stock holding from its market weight is generally limited to 1% or less. The
result is a portfolio that is even more diversified than before.
We are managing the Fund as a fully invested equity portfolio. As a result, cash
(or short-term investments) is only 0.1% of assets. Under most market
conditions, we intend to continue our substantial commitment to equities.
We have recently traded more actively than usual due to the increased
diversification of the portfolio. This has led to a further decrease in the
direct international exposure in the portfolio, as well as a change in the top
holdings in the Fund. As we reported in our last letter, we continued to pare
back the international stocks in the portfolio, because the Fund was intended to
be primarily a U.S. stock fund. (There is another fund in the Concert Investment
Series, the International Equity Fund, suitable for aggressive investors who
want to invest overseas.) We will continue to use international stocks on
occasion, particularly where the company has unique markets or skills, but the
main focus of the Fund will be to invest in domestic stocks. The international
stocks that we sold over the last six months include SmithKline Beecham and
Nokia. We also traded out
- --------------------------------------------------------------------------------
16 1999 Semi-Annual Report to Shareholders
<PAGE>
of some convertible bonds issued by international companies, including Roche
Holdings, Deutsche Finance Netherlands and Sandoz Ltd.
The top holdings in the Fund also changed significantly since our last report.
One way to look at these changes is to examine the largest holdings of the Fund.
Ameritech, now one of the top ten, was not in the portfolio six months ago. We
purchased shares to increase our exposure to the telecommunications industry in
general and the Regional Bell Operating Companies in particular. BankAmerica had
been the second largest stock in the Fund. We trimmed the position slightly and
the bank is now the sixth largest position. We also sold some shares of MCI
WorldCom. Even with these sales, the stock is still the fifth largest position
in the portfolio. With each of the other seven top stocks, we purchased more
shares over the last few months. Five of the seven stocks are technology names:
Intel, Microsoft, International Business Machines, Cisco Systems and
Hewlett-Packard. As a group, we believe that technology companies remain quite
attractive. They have good to outstanding growth prospects, coupled with
valuations that are reasonable relative to their growth rates. The two stocks
that round out the top ten are General Electric and Merck.
All of these companies are very large-capitalization stocks, reflecting our
desire to increase the average capitalization of the portfolio -- a theme we
mentioned in our last letter. This also reflects our goal to conform the
portfolio more closely to the overall market, as discussed earlier.
The worldwide economic environment has strengthened over the last few months.
The U.S. economy continues strongly, with high employment and high consumption.
And there is evidence that the downtrodden Asian economies are improving. So the
much-discussed "global economic crisis" may be heading for the history books.
Please see pages eighteen and nineteen for additional Fund performance
information.
- --------------------------------------------------------------------------------
The Concert Investment Series 17
<PAGE>
- --------------------------------------------------------------------------------
Growth and Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $18.53 $21.05 $0.04 $ 0.78 18.33%+
- -------------------------------------------------------------------------------------------------------
10/31/98 20.10 18.53 0.20 3.25 10.90
- -------------------------------------------------------------------------------------------------------
10/31/97 18.11 20.10 0.30 2.18 27.35
- -------------------------------------------------------------------------------------------------------
10/31/96 16.95 18.11 0.34 1.75 20.58
- -------------------------------------------------------------------------------------------------------
10/31/95 15.77 16.95 0.30 1.60 22.45
- -------------------------------------------------------------------------------------------------------
10/31/94 17.13 15.77 0.28 1.16 0.51
- -------------------------------------------------------------------------------------------------------
10/31/93 15.54 17.13 0.28 0.30 14.13
- -------------------------------------------------------------------------------------------------------
10/31/92 14.70 15.54 0.30 0.42 10.85
- -------------------------------------------------------------------------------------------------------
10/31/91 11.49 14.70 0.32 0.00 31.68
- -------------------------------------------------------------------------------------------------------
10/31/90 12.51 11.49 0.33 0.00 (5.84)
- -------------------------------------------------------------------------------------------------------
10/31/89 10.49 12.51 0.29 0.00 22.38
=======================================================================================================
Total $2.98 $11.44
=======================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $18.53 $21.04 $0.02 $0.78 18.13%+
- -------------------------------------------------------------------------------------------------------
10/31/98 20.10 18.53 0.15 3.25 10.63
- -------------------------------------------------------------------------------------------------------
10/31/97 18.11 20.10 0.25 2.18 27.04
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 17.19 18.11 0.06 0.00 5.72+
=======================================================================================================
Total $0.48 $6.21
=======================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $18.48 $20.92 $0.00 $0.78 17.68%+
- -------------------------------------------------------------------------------------------------------
10/31/98 20.07 18.48 0.04 3.25 9.85
- -------------------------------------------------------------------------------------------------------
10/31/97 18.09 20.07 0.12 2.18 26.08
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 17.19 18.09 0.04 0.00 5.49+
=======================================================================================================
Total $0.20 $6.21
=======================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends quarterly and capital gains, if
any, annually.
- --------------------------------------------------------------------------------
18 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Growth and Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/99+ 18.33% 18.13% 17.68%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 11.40 11.07 10.28
- --------------------------------------------------------------------------------
Five Years Ended 4/30/99 20.42 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 4/30/99 15.26 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 4/30/99 13.27 24.27 23.31
================================================================================
Without Sales Charges(2)
-------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/99+ 8.28% 12.20% 12.68%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 1.91 5.52 5.28
- --------------------------------------------------------------------------------
Five Years Ended 4/30/99 18.30 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 4/30/99 14.24 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 4/30/99 12.44 21.94 22.53
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (4/30/89 through 4/30/99) 313.78%
- --------------------------------------------------------------------------------
Class A (Inception* through 4/30/99) 79.73
- --------------------------------------------------------------------------------
Class B (Inception* through 4/30/99) 76.07
================================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales charges with respect to Class 1 and Class A shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class B shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class 1 and Class A shares reflect
the deduction of the current maximum sales charge of 8.50% and 5.00%,
respectively; Class B shares reflect the deduction of a 5.00% CDSC, which
applies if shares are redeemed within one year from purchase. This CDSC
declines by 1.00% per year until no CDSC is incurred.
* Inception date for Class 1 is April 14, 1987. Inception date for Class A
and B is August 18, 1996.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
- --------------------------------------------------------------------------------
The Concert Investment Series 19
<PAGE>
- --------------------------------------------------------------------------------
Growth and Income Fund at a Glance (unaudited)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Class 1 Shares of the
Growth and Income Fund vs. Standard & Poor's 500 Index+
- --------------------------------------------------------------------------------
April 1989 -- April 1999
[LINE GRAPH]
Growth & Income Fund -- Class 1 Standard & Poor's 500 Index
4/89 9,150 10,000
10/89 9,780 11,185
10/90 9,210 10,348
10/91 12,067 13,806
10/92 13,376 15,179
10/93 15,267 17,442
10/94 15,345 18,116
10/95 18,789 22,900
10/96 22,656 28,417
10/97 28,852 37,539
10/98 31,997 45,801
4/99 37,860 56,019
+ Hypothetical illustration of $10,000 invested in Class 1 shares on April
30, 1989, assuming deduction of the maximum 8.50% sales charge at the time
of investment and the reinvestment of dividends and capital gains, if any,
at net asset value through April 30, 1999. The Standard & Poor's 500 Index
("S&P 500 Index") is an index of widely held common stocks listed on the
New York and American Stock Exchanges and the over-the-counter markets.
Figures for the S&P 500 Index include reinvestment of dividends. The index
is unmanaged and is not subject to the same management and trading
expenses of a mutual fund. The performance of the Fund's other classes may
be greater or less than the Class 1 shares' performance indicated on this
chart, depending on whether greater or lesser sales charges and fees were
incurred by shareholders investing in the other classes.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption values may be more or less than the original cost. No
adjustment has been made for shareholder tax liability on dividends or
capital gains.
Industry Diversification of Common Stock*
- --------------------------------------------------------------------------------
[BAR GRAPH]
Consumer Products 2.8%
Consumer Services 5.5%
Energy 5.6%
Finance 17.7%
Health Care 10.7%
Producer Manufacturing 7.4%
Raw Materials/Processing Industries 5.8%
Retail 7.0%
Technology 24.5%
Telephone 5.5%
Other 7.5%
* As a percentage of total common stock.
Investment Allocation as of April 30, 1999
- --------------------------------------------------------------------------------
[PIE CHART]
Common Stock 99.0%
Convertible Preferred Stock and Repurchase Agreement 0.1%
- --------------------------------------------------------------------------------
20 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
The International Equity Fund ("Fund") seeks total return on its assets from
growth of capital and income. The Fund invests principally in a diversified
portfolio of the equity securities of established non-U.S. issuers. Please keep
in mind that investing internationally involves specific risks, such as changes
in currency rates, foreign taxation, and differences in accounting and other
financial standards.
Portfolio Managers:
Jeffrey J. Russell, CFA
[PHOTO]
Assumed management:
March 17, 1995
(Date the Fund's investment
strategy was implemented)
Investment experience:
17 years
Background: Joined Salomon Smith Barney in 1990. Previously with Drexel Burnham
Lambert.
Education: B.S., Massachusetts Institute of Technology; M.B.A., Wharton School
of Finance, University of Pennsylvania
James B. Conheady
[PHOTO]
Assumed management:
March 17, 1995
(Date the Fund's investment
strategy was implemented)
Investment experience:
More than 35 years
Background: Joined Salomon Smith Barney in 1990. Previously with Drexel Burnham
Lambert.
Education: B.S.S., Georgetown University
Fund Update
For the six months ended April 30, 1999, the Class A shares of the Fund returned
25.98% without sales charges. In comparison, the MSCI EAFE Index returned 15.28%
during the same period.
Global markets responded positively to a coordinated set of interest-rate
reductions in the fall of 1998. The resulting improved liquidity in the
financial markets successfully countered the paralysis following the Russian
debt default, and resultant difficulties of certain hedge funds and financial
institutions. As financial market conditions returned to normal, the extreme
investor aversion to risk during the three months ending October 1998 receded.
The early months of 1999 have been an interesting period for international
equity markets, as, for the first time in several years, performance of the
developed markets lagged the emerging markets by a substantial margin. Emerging
markets were spurred by sharply declining interest rates in many economies, an
upturn of depressed commodity prices and the perception that the "last shoe had
dropped" with the currency devaluation in Brazil. Both Asia and Latin America,
the critical bookends of the asset class, showed signs of stability and
recovery. Emerging market positions were reduced to 4% of the Fund specifically
on investment opportunities in the developed economies.
Among the developed markets, the Japanese stock market posted the largest gain.
Japanese stock reform efforts, crafted at an agonizingly slow pace over the last
two years, have finally gathered momentum. The long-term outlook for the
Japanese economy is guarded, but there can be no argument that the government
efforts to stabilize the economy have taken effect. Government spending has
- --------------------------------------------------------------------------------
The Concert Investment Series 21
<PAGE>
accelerated, interest rates are at record low levels, banks are being forced to
recapitalize and companies are restructuring to lower costs and boost
productivity. While guardedly cautious about the long-term sustainability of
these efforts the exposure to Japanese equities in the Fund is being maintained
at 8%, for now.
After several difficult economic years, non-Japan Asia has started a slow
recovery. Interest rates have plunged from levels needed to stem local currency
declines, and property prices, a key barometer of sentiment in many smaller
Asian economies, have rebounded. The exposure to high-quality,
large-capitalization Asian stocks has increased during the past year to 6% of
assets. Additions have focused on companies with strong earnings prospects, such
as Hong Kong & Shanghai Bank, Sun Hung Kai Properties of Hong Kong and Venture
Manufacturing of Singapore.
The Fund remains a committed holder of growth companies in Europe, despite
recent geographic and stylistic rotation by other international investors. The
launch of the new European currency, the euro, while technically well executed,
has been somewhat disappointing, as that currency has weakened sharply versus
the U.S. dollar. Rising short-term yields in the U.S. and declining interest
rates in Europe, combined with anxieties about the military conflict in Kosovo,
were the primary causes of the Euro's weakness.
European companies across many industries have embarked on major merger and
acquisition initiatives. Given the favorable cost of capital and deregulation of
many industries, progressive managers have launched strategic alliance actions
to build geographic breadth and also to achieve economies of scale. The banking,
telecommunications, insurance, automotive, pharmaceutical and defense
industries, among others, have been affected by the consolidation trend. We
believe these mergers and acquisitions will help European managers dramatically
improve the return on investment of their basic businesses.
Please see pages twenty-three and twenty-four for additional Fund performance
information.
- --------------------------------------------------------------------------------
22 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Total
Period Ended of Period of Period Dividends Returns(1)
=========================================================================================
<S> <C> <C> <C> <C>
4/30/99 $19.06 $24.05 $0.00 26.18%+
- -----------------------------------------------------------------------------------------
10/31/98 18.16 19.06 0.00 4.96
- -----------------------------------------------------------------------------------------
10/31/97 16.52 18.16 0.00 9.99
- -----------------------------------------------------------------------------------------
Inception* -- 10/31/96 16.00 16.52 0.00 3.25+
=========================================================================================
Total $0.00
=========================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Total
Period Ended of Period of Period Dividends Returns(1)
=========================================================================================
<S> <C> <C> <C> <C>
4/30/99 $18.94 $23.86 $0.00 25.98%+
- -----------------------------------------------------------------------------------------
10/31/98 18.14 18.94 0.00 4.41
- -----------------------------------------------------------------------------------------
10/31/97 16.54 18.14 0.00 9.74
- -----------------------------------------------------------------------------------------
10/31/96 13.86 16.54 0.00 19.34
- -----------------------------------------------------------------------------------------
Inception* -- 10/31/95 11.81 13.86 0.00 16.28(2)+
=========================================================================================
Total $0.00
=========================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Total
Period Ended of Period of Period Dividends Returns(1)
=========================================================================================
<S> <C> <C> <C> <C>
4/30/99 $18.44 $23.14 $0.00 25.49%+
- -----------------------------------------------------------------------------------------
10/31/98 17.81 18.44 0.00 3.54
- -----------------------------------------------------------------------------------------
10/31/97 16.36 17.81 0.00 8.93
- -----------------------------------------------------------------------------------------
10/31/96 13.79 16.36 0.00 18.64
- -----------------------------------------------------------------------------------------
Inception* -- 10/31/95 11.81 13.79 0.00 15.69(2)+
=========================================================================================
Total $0.00
=========================================================================================
</TABLE>
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
- --------------------------------------------------------------------------------
The Concert Investment Series 23
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
----------------------------------
Class 1 Class A(2) Class B(2)
================================================================================
Six Months Ended 4/30/99+ 26.18% 25.98% 25.49%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 12.07 11.50 10.56
- --------------------------------------------------------------------------------
Inception* through 4/30/99 16.13 18.33 17.45
================================================================================
Without Sales Charges(3)
----------------------------------
Class 1 Class A(2) Class B(2)
================================================================================
Six Months Ended 4/30/99+ 15.46% 19.66% 20.49%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 2.56 5.90 5.56
- --------------------------------------------------------------------------------
Inception* through 4/30/99 12.39 16.86 17.31
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (Inception* through 4/30/99) 50.31%
- --------------------------------------------------------------------------------
Class A (Inception* through 4/30/99)(2) 100.17
- --------------------------------------------------------------------------------
Class B (Inception* through 4/30/99)(2) 94.13
================================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales charges with respect to Class 1 and Class A shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class B shares.
(2) For the purpose of calculating performance, the Fund's inception date is
March 17, 1995 (date the Fund's investment strategy was implemented).
(3) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class A shares reflect the deduction
of the current maximum sales charge of 8.50% and 5.00%, respectively;
Class B shares reflect the deduction of a 5.00% CDSC, which applies if
shares are redeemed within one year from purchase. This CDSC declines by
1.00% per year until no CDSC is incurred.
* Inception date for Class 1 is August 8, 1996. Inception date for Class A
and B is February 21, 1995.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
- --------------------------------------------------------------------------------
24 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund at a Glance (unaudited)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Class A and B Shares of the
International Equity Fund vs. MSCI EAFE Index+
- --------------------------------------------------------------------------------
March 1995 -- April 1999
[LINE GRAPH]
International Equity International Equity
Fund -- Class A Fund -- Class B MSCI EAFE Index
3/17/95 9,453 10,000 10,000
10/31/95 10,991 11,069 9,993
10/31/96 13,109 13,316 11,073
10/31/97 14,385 14,641 11,618
10/31/98 15,020 15,270 12,755
4/30/99 18,922 19,313 14,704
+ Hypothetical illustration of $10,000 invested in Class A and B shares at
inception on March 17, 1995 (date the Fund's investment strategy was
implemented), assuming deduction of the maximum 5.50% sales charge at the
time of investment for Class A shares and the deduction of the maximum
5.00% CDSC for Class B shares. It also assumes reinvestment of dividends
and capital gains, if any, at net asset value through April 30, 1999. The
Morgan Stanley Capital International ("MSCI") EAFE Index is a composite
portfolio consisting of equity total returns for the countries of
Australia, New Zealand and countries in the Far East. The index is
unmanaged and is not subject to the same management and trading expenses
of a mutual fund. The performance of the Fund's other class may be greater
or less than the Class A and B shares' performance indicated on this
chart, depending on whether greater or lesser sales charges and fees were
incurred by shareholders investing in the other classes.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption values may be more or less than the original cost. No
adjustment has been made for shareholder tax liability on dividends or
capital gains.
Diversification by Country*
- --------------------------------------------------------------------------------
[BAR GRAPH]
Canada 7.8%
Finland 4.7%
Germany 5.9%
Ireland 6.4%
France 4.9%
Japan 8.3%
Hong Kong 5.2%
Netherlands 4.5%
Sweden 5.5%
United Kingdom 24.9%
Other 21.0%
* As a percentage of total common stock.
Investment Allocation as of April 30, 1999
- --------------------------------------------------------------------------------
[PIE CHART]
Common Stock 97.3%
Repurchase Agreement 2.7%
- --------------------------------------------------------------------------------
The Concert Investment Series 25
<PAGE>
- --------------------------------------------------------------------------------
Mid Cap Fund
- --------------------------------------------------------------------------------
The Mid Cap Fund ("Fund") seeks capital appreciation. The Fund invests primarily
in equity securities of medium-sized companies, which are companies with market
capitalizations within the range of those companies included in the Standard &
Poor's 400 Index at the time of investment. *
Portfolio Manager:
Lawrence B. Weissman, CFA
[PHOTO]
Commencement of Operations:
March 15, 1999
Investment experience:
13 years
Background: Joined Salomon Smith Barney in 1997. Previously with Neuberger &
Berman and TIAA-CREF.
Education: B.S., Cornell University; M.B.A., Columbia University
Fund Update
We began investing in the Fund on March 15, 1999, and have sought to build a
portfolio of high-quality, well-positioned companies at attractive valuations.
We look to buy companies that have the best chance of becoming large-cap stocks
- -- in other words, tomorrow's blue chip companies.
We are currently 94% invested, with approximately 19% of that investment placed
in S&P Mid Cap-index futures, which we utilize when transitioning cash to
stocks. The futures provide mid-cap representation while we wait for
opportunities to purchase our favored stocks at attractive prices. We remain
committed to our disciplined investing approach and buy only what we consider to
be solid companies. As of April 30, 1999, the Fund's portfolio consisted of 85
stocks, with an average market capitalization of about $4 billion.
We continue to believe that this is an opportune time to invest in mid-cap
stocks. The P/E for this sector relative to that of large-capitalization stocks
is the lowest it has been since late 1990. At the same time, mid-cap companies
are exhibiting faster earnings growth than the large-cap sector. We therefore
believe that mid-cap stocks are poised for better performance going forward.
From inception through April 30, 1999, the Fund was up roughly 3% on an absolute
basis. Now that the Fund's portfolio is relatively fully invested, we believe
that it is well positioned to capture the performance opportunities that the
mid-cap universe offers.
See page 27 for additional Fund performance information.
- ----------
* Because the Fund invests primarily in medium-capitalization companies, an
investment in the Fund may be more volatile and more susceptible to loss
than an investment in a fund which invests primarily in
large-capitalization companies. Medium-capitalization companies may have
more limited product lines, markets and financial resources than
large-capitalization companies. They may have shorter operating histories
and more erratic businesses, although they generally have more established
businesses than small-capitalization companies. The prices of
medium-capitalization company stocks tend to be more volatile than the
prices of large-capitalization company stocks.
- --------------------------------------------------------------------------------
26 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Mid Cap Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
Inception* -- 4/30/99 $11.44 $11.77 $0.00 $0.00 2.88%+
=======================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
Inception* -- 4/30/99 $11.40 $11.77 $0.00 $0.00 3.25%+
=======================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
Inception* -- 4/30/99 $11.44 $11.76 $0.00 $0.00 2.80%+
=======================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
- --------------------------------------------------------------------------------
Average Annual Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-------------------------------
Class 1 Class A Class B
================================================================================
Inception* through 4/30/99+ 2.88% 3.25% 2.80%
================================================================================
Without Sales Charges(2)
-------------------------------
Class 1 Class A Class B
================================================================================
Inception* through 4/30/99+ (5.84)% (1.92)% (2.20)%
================================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales charges with respect to Class 1 and Class A shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class B shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class 1 and Class A shares reflect
the deduction of the current maximum sales charge of 8.50% and 5.00%,
respectively; Class B shares reflect the deduction of a 5.00% CDSC, which
applies if shares are redeemed within one year from purchase. This CDSC
declines by 1.00% per year until no CDSC is incurred.
* Inception date for Class 1 and B is March 16, 1999. Inception date for
Class A is March 15, 1999.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
- --------------------------------------------------------------------------------
The Concert Investment Series 27
<PAGE>
- --------------------------------------------------------------------------------
Municipal Bond Fund
- --------------------------------------------------------------------------------
The Municipal Bond Fund ("Fund") seeks as high a level of current interest
income exempt from federal income tax as is consistent with the preservation of
capital. The Fund invests in a diversified portfolio consisting principally of
municipal bonds, which are obligations issued by or on behalf of states,
territories or possessions of the U.S. and the District of Columbia and their
political subdivisions, agencies and instrumentalities. Tax-exempt means that
the bonds pay interest that is excluded from gross income for federal income tax
purposes.*
Portfolio Manager:
Joseph P. Deane
[PHOTO]
Assumed management:
December 31, 1997
Investment experience:
More than 25 years
Background: Served as head of tax-exempt fixed-income mutual funds at Hutton
Asset Management from 1981 to 1988. Prior to that, he was an institutional
municipal bond salesman at E.F. Hutton Co. Inc.
Education: B.A., History, Iona College
Fund Update
For the six months ended April 30, 1999, the Fund's Class A shares returned
1.18% without sales charges. In comparison, the unmanaged Lehman Brothers
Municipal Bond Index generated a total return of 1.75% during the same period.
Over the six months covered by this report, the Fund distributed income
dividends totaling $0.32 and a capital gain of $0.23 per Class A share. Based on
a net asset value ("NAV") of $14.02 and a distribution rate of $0.055 per Class
A share as of April 30, 1999, the annualized distribution rate of 4.71%. For an
individual in the federal income tax bracket of 36%, the Fund's tax-free yield
of 4.71% is equivalent to a taxable yield of 7.36%.
During the Fund's reporting period, the bond markets were not dull. Beginning
with the Asian crisis, Russia's default and the problems experienced by a major
hedge fund, we have certainly seen some turbulence. However, the bottom line is
that inflation is near historic lows, the U.S. economy is quite solid and the
Federal Reserve Board ("Fed"), although expressing concerns about the possible
reemergence of inflationary pressures, continues to pursue a neutral stance with
respect to interest rates.
Through April 1999, the municipal bond market has been relatively tame compared
to U.S. Treasuries. In our opinion, municipal bonds, which are relatively
inexpensive, currently offer significant downside protection. In addition, new
issuance of municipal bonds has slowed down from 1998 levels, and, on a
year-over-year basis, could decrease by $75 billion. With inflation relatively
low, conditions appear to be favorable for municipal bonds.
As of April 30, 1999, the Fund's average weighted maturity was 16.5 years.
Moreover, at the end of April, approximately 90.7% of the Fund's holdings were
rated investment-grade (BBB/Baa and higher) by either Standard & Poor's Ratings
Service or Moody's Investors Service, Inc., with about 60.0% of the Fund
invested in AAA bonds, the highest possible rating. (Standard & Poor's and
Moody's are two major credit-reporting and bond-rating agencies.)
Over the short term, we do not think any future Fed monetary policy will be
influenced by conditions in the financial markets. We think that any future
Fed's decisions on interest rates should be driven by the state of the U.S.
economy. Unless there are signs of inflationary pressures, we do not anticipate
any Fed tightening in the coming months. However, if the U.S. economy begins to
reaccelerate and labor markets continue to tighten, the Fed may raise rates in
the second half of 1999.
Please see pages twenty-eight and twenty-nine for additional Fund performance
information.
- ----------
* Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders. Income from Federally tax-free funds may be
subject to state and local taxes. Capital gains, if any, are subject to
federal, state and local taxes.
- --------------------------------------------------------------------------------
28 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Municipal Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $14.41 $14.02 $0.34 $0.23 1.30%+
- -------------------------------------------------------------------------------------------------------
10/31/98 14.21 14.41 0.66 0.13 7.20
- -------------------------------------------------------------------------------------------------------
10/31/97 13.83 14.21 0.66 0.04 8.04
- -------------------------------------------------------------------------------------------------------
10/31/96 13.77 13.83 0.71 0.04 6.09
- -------------------------------------------------------------------------------------------------------
10/31/95 12.89 13.77 0.73 0.00 12.72
- -------------------------------------------------------------------------------------------------------
10/31/94 14.07 12.89 0.71 0.00 (3.38)
- -------------------------------------------------------------------------------------------------------
10/31/93 13.03 14.07 0.73 0.00 13.84
- -------------------------------------------------------------------------------------------------------
10/31/92 12.84 13.03 0.75 0.00 7.57
- -------------------------------------------------------------------------------------------------------
10/31/91 12.18 12.84 0.75 0.00 11.79
- -------------------------------------------------------------------------------------------------------
10/31/90 12.37 12.18 0.77 0.00 4.77
- -------------------------------------------------------------------------------------------------------
10/31/89 12.26 12.37 0.76 0.00 7.31
=======================================================================================================
Total $7.57 $0.44
=======================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $14.41 $14.02 $0.32 $0.23 1.18%+
- -------------------------------------------------------------------------------------------------------
10/31/98 14.21 14.41 0.63 0.13 6.93
- -------------------------------------------------------------------------------------------------------
10/31/97 13.83 14.21 0.63 0.04 7.77
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 13.78 13.83 0.10 0.00 1.12+
=======================================================================================================
Total $1.68 $0.40
=======================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/99 $14.39 $14.00 $0.27 $0.23 0.82%+
- -------------------------------------------------------------------------------------------------------
10/31/98 14.20 14.39 0.52 0.13 6.10
- -------------------------------------------------------------------------------------------------------
10/31/97 13.82 14.20 0.52 0.04 6.98
- -------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 13.78 13.82 0.09 0.00 0.93+
=======================================================================================================
Total $1.40 $0.40
=======================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends monthly and capital gains, if
any, annually.
- --------------------------------------------------------------------------------
The Concert Investment Series 29
<PAGE>
- --------------------------------------------------------------------------------
Municipal Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/99+ 1.30% 1.18% 0.82%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 5.94 5.68 4.85
- --------------------------------------------------------------------------------
Five Years Ended 4/30/99 6.97 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 4/30/99 7.27 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 4/30/99 7.46 6.29 5.48
================================================================================
Without Sales Charges(2)
-------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/99+ (3.52)% (3.38)% (3.56)%
- --------------------------------------------------------------------------------
Year Ended 4/30/99 0.93 0.96 0.38
- --------------------------------------------------------------------------------
Five Years Ended 4/30/99 5.94 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 4/30/99 6.75 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 4/30/99 6.98 4.49 4.46
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (4/30/89 through 4/30/99) 101.77%
- --------------------------------------------------------------------------------
Class A (Inception* through 4/30/99) 17.91
- --------------------------------------------------------------------------------
Class B (Inception* through 4/30/99) 15.48
================================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales charges with respect to Class 1 and Class A shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class B shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class 1 and Class A shares reflect
the deduction of the current maximum sales charge of 4.75% and 4.50%,
respectively; Class B shares reflect the deduction of a 4.50% CDSC, which
applies if shares are redeemed within one year from purchase. This CDSC
declines by 0.50% the first year of purchase and thereafter by 1.00% per
year until no CDSC is incurred.
* Inception date for Class 1 is July 13, 1988. Inception date for Class A
and B is August 18, 1996.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
- --------------------------------------------------------------------------------
30 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Municipal Bond Fund at a Glance (unaudited)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Class 1 Shares of the
Municipal Bond Fund vs. Lehman Brothers Municipal Bond Index+
- --------------------------------------------------------------------------------
April 1989 -- April 1999
[LINE GRAPH]
Municipal Bond Fund -- Class 1 Shares Lehman Brothers Municipal Bond Index
4/89 9,528 10,000
10/89 9,887 10,480
10/90 10,359 11,364
10/91 11,580 12,747
10/92 12,457 13,816
10/93 14,181 15,762
10/94 13,702 15,077
10/95 15,445 17,314
10/96 16,386 18,301
10/97 17,703 19,857
10/98 18,977 21,449
4/99 19,224 21,825
+ Hypothetical illustration of $10,000 invested in Class 1 shares on April
30, 1989, assuming deduction of the maximum 4.50% sales charge at the time
of investment and the reinvestment of dividends and capital gains, if any,
at net asset value through April 30, 1999. The Lehman Brothers Municipal
Bond Index is a broad based, total return index comprised of bonds which
are all investment grade, fixed rate, long-term maturities (greater than
one year) and are selected from issues larger than $50 million dated since
January 1991. The index is unmanaged and is not subject to the same
management and trading expenses of a mutual fund. The performance of the
Fund's other classes may be greater or less than the Class 1 shares'
performance indicated on this chart, depending on whether greater or
lesser sales charges and fees were incurred by shareholders investing in
the other classes.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption values may be more or less than the original cost. No
adjustment has been made for shareholder tax liability on dividends or
capital gains.
Diversification By State*
- --------------------------------------------------------------------------------
[BAR GRAPH]
California 8.2%
Colorado 6.8%
Illinois 5.4%
Michigan 5.2%
Missouri 6.7%
New Jersey 4.1%
New York 9.9%
Ohio 5.8%
Pennsylvania 6.3%
Texas 17.3%
Other 24.3%
* As a percentage of total investments.
Summary of Investments by Combined Ratings
- --------------------------------------------------------------------------------
Standard Percentage of
Moody's & Poor's Total Investments
- --------------------------------------------------------------------------------
Aaa AAA 60.0%
Aa AA 10.5
A A 12.2
Baa BBB 8.0
VMIG 1/P-1 A-1 1.7
NR NR 7.6
------
100.0%
======
- --------------------------------------------------------------------------------
The Concert Investment Series 31
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
COMMON STOCK -- 93.5%
Auto & Transportation -- 3.6%
25,500 Airborne Freight Corp. $ 816,000
21,400 CNF Transportation, Inc. 934,913
49,350 COMAIR Holdings, Inc. 1,088,784
14,700 Federal Mogul Corp. 644,963
52,500 Gentex Corp.+ 1,578,281
29,900 Hayes Lemmerz International, Inc.+ 859,625
17,300 Lear Corp.+ 793,638
35,000 Mesaba Holdings, Inc.+ 509,688
18,100 SkyWest, Inc. 470,600
35,600 Superior Industries International, Inc. 890,000
10,400 U.S. Airways Group, Inc.+ 566,150
- ------------------------------------------------------------------------------------------
9,152,642
- ------------------------------------------------------------------------------------------
Consumer Discretionary -- 18.9%
18,100 Abercrombie & Fitch Co., Class A Shares+ 1,721,763
28,300 Action Performance Cos., Inc.+* 958,663
39,700 Apollo Group, Inc., Class A Shares+ 982,575
34,000 Barnes & Noble, Inc.+ 1,181,500
48,700 Bed Bath & Beyond, Inc.+* 1,737,981
59,200 Best Buy Co., Inc.+ 2,826,800
36,500 Borders Group, Inc.+ 526,969
35,900 Brinker International, Inc.+ 991,738
34,200 CEC Entertainment Inc.+ 1,282,500
18,600 Central Newspapers, Inc., Class A Shares 631,237
19,600 Chancellor Media Corp.+* 1,075,550
31,200 CheckFree Holdings Corp.+ 1,497,600
73,800 Circus Circus Enterprises, Inc.+ 1,554,412
18,200 Claire's Stores, Inc. 602,875
35,800 Complete Business Solutions, Inc.+ 801,025
17,100 Consolidated Graphics, Inc.+ 728,887
28,000 Cox Radio, Inc., Class A Shares+ 1,365,000
37,000 Day Runner, Inc.+ 462,500
50,400 The Dial Corp. 1,713,600
18,200 Dollar Tree Stores, Inc.+* 664,300
19,300 Emmis Communications Corp., Class A Shares+ 868,500
87,700 Family Dollar Stores, Inc. 2,115,763
37,800 Family Golf Centers, Inc.+* 271,688
55,500 Foodmaker, Inc.+ 1,338,938
70,800 Group Maintenance America Corp.+ 946,950
21,500 Houghton Mifflin Co. 959,438
51,500 International Game Technology+ 914,125
43,000 Jones Apparel Group, Inc.+ 1,419,000
39,500 Jostens, Inc. 846,781
34,000 Linens 'n Things, Inc.+ 1,555,500
35,400 Metamor Worldwide, Inc.+ 692,513
14,800 The Metzler Group, Inc.+ 412,550
36,125 Pacific Sunwear of California, Inc.+ 1,340,012
27,500 Performance Food Group Co.+ 728,750
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
32 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Consumer Discretionary -- 18.9% (continued)
27,150 Regis Corp. $ 695,719
22,600 Ross Stores, Inc. 1,038,187
46,500 Saks Inc.+ 1,316,531
89,900 Samsonite Corp.+* 539,400
48,400 Shaw Industries, Inc. 877,250
19,100 Sotheby's Holdings, Inc., Class A Shares 814,137
26,800 United Stationers, Inc. 457,275
43,900 USA Networks, Inc.+ 1,640,763
24,600 Valassis Communications, Inc.+ 1,377,600
58,900 Vistana, Inc.+ 876,138
33,200 Williams-Sonoma, Inc.+ 962,800
- ------------------------------------------------------------------------------------------
48,313,783
- ------------------------------------------------------------------------------------------
Consumer Staples -- 0.7%
36,800 The Earthgrains Co. 779,700
40,800 Smithfield Foods, Inc.+ 963,900
- ------------------------------------------------------------------------------------------
1,743,600
- ------------------------------------------------------------------------------------------
Finance -- 6.1%
12,100 Astoria Financial Corp. 606,513
23,100 CMAC Investment Corp. 1,059,713
18,300 CNB Bancshares, Inc. 776,606
33,600 Community First Bank 686,700
7,500 Cullen/Frost Bankers, Inc. 404,531
59,700 Doral Financial Corp. 1,052,213
24,900 Everest Reinsurance Holdings, Inc. 754,781
27,610 Fidelity National Financial, Inc. 503,883
17,600 The FINOVA Group, Inc. 850,300
27,900 GreenPoint Financial Corp. 976,500
24,200 Hudson United Bancorp 856,075
24,400 National Commerce Bancorporation 610,000
52,900 North Fork Bancorporation, Inc. 1,190,250
29,200 Peoples Heritage Financial Group, Inc. 565,750
26,800 Premier Bancshares, Inc. 525,950
17,100 Silicon Valley Bancshares 300,319
43,900 Sovereign Bancorp, Inc. 598,138
27,850 Triangle Bancorp, Inc. 452,562
31,400 Western Bancorp 1,128,438
25,100 Zions Bancorporation 1,673,856
- ------------------------------------------------------------------------------------------
15,573,078
- ------------------------------------------------------------------------------------------
Health Care -- 12.6%
12,100 Andrx Corp.+ 952,875
48,000 Bergen Brunswig Corp., Class A Shares 912,000
32,300 Biogen, Inc.+ 3,070,519
44,600 Biomet, Inc. 1,828,600
34,100 CareMatrix Corp.+ 583,963
37,500 The Cooper Cos., Inc.+ 590,625
25,600 Forest Laboratories, Inc., Class A Shares+ 1,139,200
194,500 Gensia Sicor Inc.+ 680,750
19,500 Genzyme Corp. - General Division+ 736,125
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 33
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Health Care -- 12.6% (continued)
13,400 HCR Manor Care, Inc.+ $ 371,850
45,800 ICOS Corp. +* 1,820,550
25,200 Immunex Corp.+* 2,406,600
24,500 Jones Pharma Inc.* 787,063
83,700 Ligand Pharmaceuticals, Inc., Class B Shares+ 826,538
21,350 Medicis Pharmaceutical Corp., Class A Shares+ 519,071
24,200 MiniMed Inc.+ 1,512,500
35,000 Mylan Laboratories Inc.* 794,063
27,500 Ocular Sciences, Inc.+ 838,750
58,700 Omnicare, Inc.* 1,412,469
14,300 PacifiCare Health Systems, Inc., Class B Shares+ 1,140,872
59,425 PSS World Medical, Inc.+ 579,394
31,600 Quintiles Transnational Corp.+ 1,281,775
33,650 Res-Care, Inc.+* 622,525
13,000 Sepracor Inc.+* 1,098,500
32,500 STERIS Corp.+* 576,875
46,000 Sybron International Corp.+* 1,273,625
13,400 Universal Health Services, Inc., Class B Shares 694,288
13,600 VISX, Inc.+ 1,751,000
14,400 Waters Corp.+ 1,513,800
- ------------------------------------------------------------------------------------------
32,316,765
- ------------------------------------------------------------------------------------------
Materials & Processing -- 4.9%
103,600 Airgas, Inc.+ 1,217,300
29,100 Centex Construction Products, Inc. 1,029,413
19,800 Cousins Properties, Inc. 688,050
21,100 Federal Realty Investment Trust 503,763
43,200 Friede Goldman International Inc.+ 807,300
33,701 Glenborough Realty Trust, Inc. 579,236
30,800 NL Industries, Inc.* 363,825
23,600 Reckson Associates Realty Corp. 531,000
17,600 The Rouse Co. 427,900
46,500 Spartech Corp. 1,104,375
56,550 Stillwater Mining Co.+ 1,601,072
28,600 Tredegar Industries, Inc. 763,263
15,800 USG Corp. 922,325
28,700 Vornado Realty Trust 1,119,300
55,800 Wausau-Mosinee Paper Corp. 920,700
- ------------------------------------------------------------------------------------------
12,578,822
- ------------------------------------------------------------------------------------------
Other Energy -- 2.7%
42,100 Barrett Resources Corp.+ 1,278,788
14,700 Devon Energy Corp.* 488,775
25,864 Ocean Energy Inc.+ 240,859
44,100 R&B Falcon Corp.+ 441,000
46,700 Rowan Cos., Inc.+ 747,200
48,400 Smith International, Inc.+ 2,171,950
41,000 Weatherford International, Inc.+ 1,388,875
- ------------------------------------------------------------------------------------------
6,757,447
- ------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
34 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Producer Durables -- 5.0%
29,900 AFC Cable Systems, Inc.+ $ 986,700
37,700 Allied Waste Industries, Inc.+ 666,819
23,300 Briggs & Stratton Corp. 1,536,344
21,900 C&D Technologies, Inc. 565,294
20,900 Carlisle Cos., Inc. 1,024,100
28,900 Crane Co. 836,294
61,300 Howmet International Inc.+ 980,800
17,500 Jacobs Engineering Group Inc.+ 690,156
40,000 Kellstrom Industries, Inc.+ 737,500
31,100 Lennar Corp. 752,231
37,200 The Manitowoc Co., Inc. 1,418,250
49,100 Mettler - Toledo International Inc.+ 1,282,737
12,400 Millipore Corp. 380,525
16,800 Nordson Corp. 1,012,200
- ------------------------------------------------------------------------------------------
12,869,950
- ------------------------------------------------------------------------------------------
Technology -- 34.3%
56,700 Aavid Thermal Technologies, Inc.+ 1,080,843
13,700 Adobe Systems, Inc. 868,237
28,500 Altera Corp.+ 2,059,125
27,000 Amazon.com, Inc.+* 4,645,687
37,200 Arrow Electronics, Inc. 676,575
28,000 Autodesk, Inc. 833,000
11,800 BroadVision, Inc.+ 685,137
66,900 CHS Electronics, Inc.+* 338,681
14,922 CIBER, Inc.+* 281,653
46,600 Citrix Systems, Inc.+ 1,980,500
16,200 CMGI Inc.+* 4,123,912
44,400 Comdisco, Inc. 1,168,275
31,050 Comverse Technology, Inc.+ 1,991,081
2,500 Concentric Network Corp.+ 1,043,750
18,300 CSK Auto Corp.+ 457,500
27,300 Diamond Technology Partners Inc., Class A Shares+ 580,125
17,900 DoubleClick Inc.+* 2,502,644
13,300 DST Systems, Inc.+ 774,725
40,600 E*TRADE Group, Inc.+ 4,689,300
20,800 Electronic Arts Inc.+ 1,056,900
44,700 Electronics for Imaging, Inc.+ 2,114,869
7,500 Excite, Inc.+* 1,095,000
30,600 Fiserv, Inc.+ 1,792,012
32,200 General Instrument Corp.+ 1,175,300
41,700 Genesys Telecommunications Laboratories, Inc.+ 745,387
21,945 Hyperion Solutions Corp.+ 331,918
47,200 IMRglobal Corp.+ 814,200
6,700 Infoseek Corp.+ 342,119
42,800 Intelligroup, Inc.+* 288,900
35,850 International Network Services+ 1,362,300
12,300 Intuit Inc.+ 1,059,336
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 35
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Technology -- 34.3% (continued)
37,400 KLA-Tencor Corp.+ $ 1,855,975
36,700 Legato Systems, Inc.+ 1,484,056
12,000 Lexmark International Group, Inc., Class A Shares+ 1,482,000
24,500 LSI Logic Corp.+ 833,000
11,700 Lycos, Inc.+ 1,166,344
48,200 Mastech Corp.+ 707,937
35,100 Network Appliance, Inc.+ 1,765,969
5,200 Network Solutions, Inc., Class A Shares+ 404,300
21,400 PMC-Sierra, Inc.+ 2,051,725
22,600 Powerwave Technologies, Inc.+ 686,475
15,900 QLogic Corp.+ 1,112,006
14,000 QUALCOMM, Inc.+ 2,800,000
29,000 Quantum Corp.+ 518,375
37,400 Rational Software Corp.+ 1,107,975
62,300 Read-Rite Corp.+ 385,481
2,500 RealNetworks, Inc.+ 553,750
49,200 RWD Technologies, Inc.+ 848,700
15,400 Sanchez Computer Associates, Inc.+* 900,900
42,040 Sanmina Corp.+ 2,790,405
20,600 Sapient Corp.+* 1,292,650
45,200 Sawtek Inc.+ 1,593,300
18,700 SCM Microsystems, Inc.+* 1,231,862
11,400 SEI Investments Co. 1,083,000
32,300 Siebel Systems, Inc.+ 1,241,531
37,300 SMART Modular Technologies, Inc.+ 498,887
43,100 Sterling Software, Inc. 891,631
60,200 Structural Dynamics Research Corp.+ 1,170,137
45,700 SunGard Data Systems, Inc.+ 1,459,544
48,700 Sykes Enterprises, Inc.+ 998,350
31,000 Teradyne, Inc.+ 1,462,813
14,700 Uniphase Corp.+* 1,784,213
54,400 Unitrode Corp.+ 962,200
21,800 VERITAS Software Corp.+ 1,547,800
99,000 VTEL Corp.+ 507,375
66,000 Xilinx, Inc.+* 3,011,250
27,500 Xircom, Inc.+ 618,750
- ------------------------------------------------------------------------------------------
87,769,657
- ------------------------------------------------------------------------------------------
Utilities -- 4.7%
36,750 Century Telephone Enterprises, Inc.+ 1,479,187
16,300 Global TeleSystems Group, Inc.+* 1,077,836
30,600 Intermedia Communications Inc.+* 984,937
37,400 MidAmerican Energy Holdings Co.+* 1,203,812
21,000 NEXTLINK Communications, Inc., Class A Shares+* 1,538,250
20,000 NTL Inc.+ 1,525,000
49,100 SkyTel Communications, Inc.+* 840,837
52,300 TALK.com, Inc.+ 627,600
18,100 US Lec Corp., Class A Shares+ 418,562
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
36 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
===========================================================================================
<S> <C> <C>
Utilities -- 4.7% (continued)
33,600 Western Wireless Corp., Class A Shares+ $ 1,379,700
21,100 WinStar Communications, Inc.+* 1,025,987
- -------------------------------------------------------------------------------------------
12,101,708
- -------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $197,864,498) 239,177,452
===========================================================================================
<CAPTION>
FACE
AMOUNT SECURITY VALUE
===========================================================================================
<S> <C> <C>
U.S. TREASURY BILLS -- 0.3%
$ 875,000 U.S. Treasury Bills, 4.370% due 6/17/99 (Cost -- $870,008) 870,008
===========================================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $198,734,506) 240,047,460
===========================================================================================
REPURCHASE AGREEMENT -- 6.2%
15,704,000 Chase Manhattan Bank, 4.770% due 5/3/99; Proceeds at
maturity -- $15,710,240; (Fully collateralized by U.S. Treasury
Notes, 11.625% due 11/15/02; Market value -- $16,022,925)
(Cost -- $15,704,000) 15,704,000
===========================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $214,438,506**) $255,751,460
===========================================================================================
</TABLE>
+ Non-income producing security.
* All or a portion of this security is on loan (See Note 10).
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 37
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Government Fund
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
============================================================================================
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 34.1%
$25,000,000 U.S. Treasury Bond, 5.625% due 5/15/08 $ 25,361,500
33,500,000 U.S. Treasury Bond, 4.750% due 11/15/08 32,013,270
25,000,000 U.S. Treasury Strips, zero coupon due 11/15/09 13,689,500
16,800,000 FNMA, zero coupon due 6/1/17 5,481,000
- --------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost -- $80,380,591) 76,545,270
============================================================================================
MORTGAGE-BACKED SECURITIES -- 64.7%
181,311 FHLMC Gold 30 Year, 8.000% due 11/1/24* 188,790
18,983,785 FHLMC Gold 30 Year, 6.500% due 3/1/29* 18,894,752
15,566 FNMA 30 Year, 8.000% due 8/1/25 16,198
23,177,390 FNMA 30 Year, 7.000% due 2/1/29* 23,503,265
31,405,520 FNMA 30 Year, 6.000% due 3/1/29* 30,463,355
2,623,499 FNMA Dwarf 15 Year, 7.500% due 8/1/12* 2,708,763
2,457 GNMA 30 Year, 10.000% due 3/15/16 2,684
3,716,154 GNMA 30 Year, 8.500% due 6/15/23* 3,929,833
3,030,415 GNMA 30 Year, 8.000% due 8/15/24* 3,161,087
16,681,585 GNMA 30 Year, 6.500% due 10/15/28* 16,587,668
23,397,200 GNMA 30 Year, 6.000% due 4/15/29 22,680,544
22,495,301 GNMA 30 Year, 7.000% due 4/15/29* 22,853,652
- --------------------------------------------------------------------------------------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost -- $145,311,915) 144,990,591
============================================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $225,692,506) 221,535,861
============================================================================================
REPURCHASE AGREEMENT -- 1.2%
2,732,000 Chase Manhattan Bank, 4.770% due 5/3/99;
Proceeds at maturity -- $2,733,084; (Fully collateralized by
U.S. Treasury Bonds, 8.125% due 8/15/21;
Market value -- $2,790,725) (Cost -- $2,732,000) 2,732,000
============================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $228,424,506**) $224,267,861
============================================================================================
</TABLE>
* Date shown represents the last in range of maturity dates of mortgage
certificates owned.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
38 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
COMMON STOCK -- 95.7%
Aerospace/Defense -- 0.9%
500,000 The Boeing Co.+ $ 20,312,500
165,000 United Technologies Corp. 23,904,375
- ------------------------------------------------------------------------------------------
44,216,875
- ------------------------------------------------------------------------------------------
Airlines -- 0.3%
200,000 AMR Corp. 13,962,500
- ------------------------------------------------------------------------------------------
Consumer Distribution -- 6.5%
800,000 Dayton Hudson Corp. 53,850,000
440,000 Fred Meyer, Inc.* 23,815,000
1,100,000 Lowe's Cos., Inc. 58,025,000
1,057,200 Rite Aid Corp. 24,645,975
630,000 Safeway Inc.* 33,980,625
1,400,000 The TJX Cos., Inc. 46,637,500
1,800,000 Wal-Mart Stores, Inc.+ 82,800,000
- ------------------------------------------------------------------------------------------
323,754,100
- ------------------------------------------------------------------------------------------
Consumer Non-Durables -- 5.1%
850,000 The Coca-Cola Co. 57,800,000
350,000 Colgate-Palmolive Co. 35,853,125
500,000 The Gillette Co. 26,093,750
349,000 Keebler Foods Co.* 11,211,625
1,000,000 PepsiCo, Inc. 36,937,500
521,000 The Procter & Gamble Co. 48,876,313
535,000 Unilever NV+ 34,741,563
- ------------------------------------------------------------------------------------------
251,513,876
- ------------------------------------------------------------------------------------------
Consumer Services -- 13.7%
649,500 Capstar Broadcasting Corp.* 17,211,750
1,985,000 CBS Corp.* 90,441,562
3,344,408 Cendant Corp.* 60,199,344
120,000 Chancellor Media Corp., Class A Shares*+ 6,585,000
550,000 Cox Communications, Inc.*+ 43,656,250
1,332,500 Infinity Broadcasting Corp.* 36,893,594
600,000 Jacor Communications, Inc.*+ 48,150,000
1,850,000 MediaOne Group, Inc.*+ 150,890,625
2,943,400 Outdoor Systems, Inc.*+ 74,136,887
1,800,000 Time Warner Inc.+ 126,000,000
750,000 The Walt Disney Co. 23,812,500
- ------------------------------------------------------------------------------------------
677,977,512
- ------------------------------------------------------------------------------------------
Energy -- 6.4%
599,600 Anadarko Petroleum Corp. 22,747,325
300,000 Atlantic Richfield Co. 25,181,250
230,000 BP Amoco PLC - ADR+ 26,033,125
310,000 Chevron Corp. 30,922,500
1,225,000 Conoco Inc., Class A Shares* 33,228,125
800,000 Exxon Corp. 66,450,000
1,200,000 Haliburton Co. 51,150,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 39
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Energy -- 6.4% (continued)
570,000 Mobil Corp. $ 59,707,500
- ------------------------------------------------------------------------------------------
315,419,825
- ------------------------------------------------------------------------------------------
Finance -- 18.0%
799,300 Ace Ltd. 24,178,825
737,700 Ambac Financial Group, Inc. 44,538,638
525,000 American International Group Inc. 61,654,687
895,800 Annuity and Life Re Holdings, Ltd. 17,692,050
1,100,000 Associates First Capital Corp. 48,743,750
325,000 Bank of America Corp. 23,400,000
490,000 BankBoston Corp. 24,010,000
680 Berkshire Hathaway Inc., Class A Shares* 51,952,000
565,900 Capital One Financial Corp. 98,289,756
1,180,000 The Chase Manhattan Corp. 97,645,000
1,659,200 Countrywide Credit Industries, Inc. 75,182,500
879,800 Exel Ltd. 53,392,863
800,000 Federal National Mortgage Association 56,750,000
3,148,900 INMC Mortgage Holdings Inc. 51,956,850
60,000 Merrill Lynch & Co., Inc. 5,036,250
260,000 Morgan Stanley Dean Witter & Co. 25,788,750
1,311,700 Ocwen Financial Corp.* 11,067,469
760,000 Providan Financial Corp. 98,087,500
580,000 Wells Fargo Co. 25,048,750
- ------------------------------------------------------------------------------------------
894,415,638
- ------------------------------------------------------------------------------------------
Health Care -- 12.0%
480,000 American Home Products Corp. 29,280,000
1,000,000 Bristol-Myers Squibb Co. 63,562,500
554,086 Cardinal Health, Inc.+ 33,141,269
275,200 Elan Corp. PLC - ADR*+ 14,172,800
155,000 Genentech, Inc.* 13,116,875
300,000 Johnson & Johnson 29,250,000
1,302,000 Merck & Co., Inc. 91,465,500
1,395,000 Monsanto Co. 63,123,750
600,000 Pfizer Inc. 69,037,500
900,000 Schering-Plough Corp. 43,481,250
1,211,500 Sepracor Inc.*+ 102,371,750
600,000 Warner-Lambert Co. 40,762,500
- ------------------------------------------------------------------------------------------
592,765,694
- ------------------------------------------------------------------------------------------
Producer Manufacturing -- 4.8%
500,000 Applied Materials, Inc.* 26,812,500
800,000 General Electric Co. 84,400,000
1,575,000 Tyco International Ltd.+ 127,968,750
- ------------------------------------------------------------------------------------------
239,181,250
- ------------------------------------------------------------------------------------------
Technology -- 21.0%
900,000 America Online, Inc.*+ 128,475,000
1,010,000 Cisco Systems, Inc.* 115,203,125
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
40 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Technology -- 21.0% (continued)
565,800 Citrix Systems, Inc.*+ $ 24,046,500
300,000 Dell Computer Corp.*+ 12,356,250
475,000 EMC Corp.*+ 51,745,313
1,926,000 Intel Corp. 117,847,125
470,000 International Business Machines Corp.+ 98,318,125
647,800 Lexmark Holding Inc., Class A Shares* 80,003,300
495,300 Linear Technology Corp. 28,170,187
910,000 Lucent Technologies, Inc.+ 54,713,750
1,780,000 Microsoft Corp.*+ 144,736,250
600,000 Nokia Corp., Sponsored ADR + 44,512,500
1,341,000 Oracle Corp.*+ 36,290,812
430,000 Sprint Corp. (PCS Group)* 18,221,250
794,000 Sun Microsystems, Inc.*+ 47,491,125
545,000 Xilinx, Inc.* 24,865,625
85,000 Yahoo! Inc.* 14,848,438
- ------------------------------------------------------------------------------------------
1,041,844,675
- ------------------------------------------------------------------------------------------
Transportation -- 0.9%
270,000 FDX Corp.* 30,391,875
734,300 Knightsbridge Tankers Ltd.+ 13,814,019
- ------------------------------------------------------------------------------------------
44,205,894
- ------------------------------------------------------------------------------------------
Utilities -- 6.1%
894,300 The AES Corp.*+ 44,715,000
1,404,300 AT&T Corp.+ 70,917,150
663,900 Century Telephone Enterprises, Inc. 26,721,975
1,140,533 MCI WorldCom, Inc.* 93,737,556
583,050 Qwest Communications International Inc.*+ 49,814,334
185,000 Sprint Corp.+ 18,974,062
639 WinStar Communications, Inc.*+ 31,071
- ------------------------------------------------------------------------------------------
304,911,148
- ------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $3,026,934,970) 4,744,168,987
==========================================================================================
<CAPTION>
FACE
AMOUNT SECURITY VALUE
==========================================================================================
<S> <C> <C>
U.S. GOVERNMENT OBLIGATION -- 2.2%
$85,000,000 U.S. Treasury Bond, 8.750% due 5/15/17
(Cost -- $99,086,484) 111,440,100
==========================================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $3,126,021,454) 4,855,609,087
==========================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 41
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Growth Fund
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
============================================================================================
<S> <C> <C>
REPURCHASE AGREEMENT -- 2.1%
$104,171,000 Chase Manhattan Bank, 4.770% due 5/3/99; Proceeds at
maturity -- $104,212,408; (Fully collateralized by U.S.
Treasury Notes, 7.625% to 12.375% due 5/15/04 to 11/15/15;
Market value -- $106,258,631) (Cost -- $104,171,000) $ 104,171,000
============================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $3,230,192,454**) $4,959,780,087
============================================================================================
</TABLE>
* Non-income producing security as this stock currently does not declare
dividends.
+ All or a portion of this security is on loan (See Note 10).
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
42 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Growth and Income Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
COMMON STOCK -- 99.0%
Automotive -- 2.6%
300,000 Ford Motor Co. $ 19,181,250
130,000 General Motors Corp. 11,561,875
120,000 Johnson Controls, Inc. 8,752,500
- ------------------------------------------------------------------------------------------
39,495,625
- ------------------------------------------------------------------------------------------
Consumer Products -- 2.8%
125,000 Colgate-Palmolive Co. 12,804,688
65,000 The Gillette Co. 3,392,188
200,000 The Procter & Gamble Co. 18,762,500
150,000 V.F. Corp. 7,725,000
- ------------------------------------------------------------------------------------------
42,684,376
- ------------------------------------------------------------------------------------------
Consumer Services -- 5.4%
185,000 The Coca-Cola Co.+ 12,580,000
375,000 ConAgra, Inc.+ 9,328,125
140,000 General Mills, Inc. 10,237,500
130,000 McDonald's Corp. 5,508,750
385,000 PepsiCo, Inc. 14,220,937
250,001 Starwood Hotels & Resorts Worldwide, Inc. 9,171,912
280,000 SUPERVALU INC. 5,845,000
285,000 Viacom Inc., Class B Shares* 11,649,375
120,000 The Walt Disney Co. 3,810,000
- ------------------------------------------------------------------------------------------
82,351,599
- ------------------------------------------------------------------------------------------
Energy -- 5.5%
330,000 The Coastal Corp. 12,622,500
350,000 Conoco Inc., Class A Shares++ 9,493,750
180,000 DTE Energy Co.+ 7,346,250
246,500 Exxon Corp. 20,474,906
190,000 Mobil Corp. 19,902,500
450,000 USX-Marathon Group 14,062,500
- ------------------------------------------------------------------------------------------
83,902,406
- ------------------------------------------------------------------------------------------
Finance -- 17.5%
345,000 A.G. Edwards, Inc. 12,075,000
350,000 The Allstate Corp. 12,731,250
160,000 American International Group, Inc. 18,790,000
345,000 Bank of America Corp. 24,840,000
225,000 BankBoston Corp. 11,025,000
250,000 Bear Stearns & Co. 11,656,250
225,000 Chase Manhattan Corp. 18,618,750
145,000 CIGNA Corp. 12,642,188
145,000 Conseco, Inc. 4,576,563
170,000 The Equitable Cos. Inc. 11,443,125
105,000 Fannie Mae 7,448,438
140,000 First Union Corp.+ 7,752,500
370,000 GreenPoint Financial Corp. 12,950,000
184,800 H&R Block, Inc. 8,893,500
200,000 The Hartford Financial Services Group, Inc. 11,787,500
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 43
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Growth and Income Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Finance -- 17.5% (continued)
95,000 J.P. Morgan & Co. Inc. $ 12,801,250
350,000 KeyCorp 10,828,125
185,000 Morgan Stanley Dean Witter & Co. 18,349,687
324,600 Provident Cos., Inc. 12,781,125
345,000 UnionBanCal Corp. 11,773,125
300,000 Washington Mutual Bank 12,337,500
- ------------------------------------------------------------------------------------------
266,100,876
- ------------------------------------------------------------------------------------------
Health Care -- 10.6%
150,000 Abbott Laboratories 7,265,625
60,000 American Home Products Corp. 3,660,000
165,000 Amgen Inc.* 10,137,188
235,000 Bristol-Myers Squibb Co. 14,937,188
225,000 Eli Lilly & Co. 16,565,625
210,000 Johnson & Johnson 20,475,000
150,000 McKesson HBOC, Inc. 5,250,000
145,000 Medtronic, Inc. 10,430,937
345,000 Merck & Co., Inc. 24,236,250
382,000 Mylan Laboratories Inc.+ 8,666,625
145,000 Pfizer Inc. 16,684,062
65,000 Schering-Plough Corp. 3,140,312
255,000 Watson Pharmaceuticals, Inc.+* 10,327,500
125,000 Wellpoint Health Networks Inc.* 8,781,250
- ------------------------------------------------------------------------------------------
160,557,562
- ------------------------------------------------------------------------------------------
Producer Manufacturing -- 7.3%
248,000 AlliedSignal Inc. 14,570,000
310,000 Fluor Corp.+ 10,346,250
425,000 General Electric Co. 44,837,500
235,000 Gulfstream Aerospace Corp.* 11,456,250
65,000 Lexmark International Group, Inc.* 8,027,500
85,000 United Technologies Corp.+ 12,314,375
180,000 W.W. Grainger, Inc. 9,033,750
- ------------------------------------------------------------------------------------------
110,585,625
- ------------------------------------------------------------------------------------------
Publishing -- 1.3%
150,000 Knight-Ridder, Inc.+ 8,071,875
230,000 The New York Times Co. 7,935,000
110,000 The Reader's Digest Association, Inc., Class A Shares 3,911,875
- ------------------------------------------------------------------------------------------
19,918,750
- ------------------------------------------------------------------------------------------
Raw Materials/Processing Industries -- 5.8%
290,000 Air Products and Chemicals, Inc. 13,630,000
245,000 Alcoa Inc. 15,251,250
230,000 Caterpillar Inc.+ 14,806,250
110,000 The Dow Chemical Co. 14,430,625
205,000 Ingersoll-Rand Co.+ 14,183,437
350,000 Rohm and Haas Co.+ 15,684,375
- ------------------------------------------------------------------------------------------
87,985,937
- ------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
44 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Growth and Income Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Retail -- 6.9%
330,000 American Stores Co. $ 10,415,625
290,000 Federated Department Stores, Inc.* 13,539,375
160,000 The Gap, Inc.+ 10,650,000
200,000 The Home Depot, Inc.+ 11,987,500
290,000 The Limited, Inc. 12,687,500
160,000 Nordstrom, Inc.+ 5,630,000
90,000 Rite Aid Corp. 2,098,125
475,000 Shaw Industries, Inc.* 8,609,375
345,000 The TJX Cos., Inc. 11,492,812
400,000 Wal-Mart Stores, Inc. 18,400,000
- ------------------------------------------------------------------------------------------
105,510,312
- ------------------------------------------------------------------------------------------
Technology -- 24.3%
110,000 America Online, Inc.* 15,702,500
340,000 Ameritech Corp. 23,268,750
270,000 Automatic Data Processing, Inc. 12,015,000
280,000 BMC Software, Inc.* 12,057,500
210,000 Cisco Systems, Inc.* 23,953,125
155,000 Comcast Corp., Class A Shares* 10,181,563
140,000 Cox Communications, Inc.* 11,112,500
515,000 Dell Computer Corp.+* 21,211,563
280,000 Electronic Data Systems Corp. 15,050,000
240,000 GTE Corp. 16,065,000
280,000 Hewlett-Packard Co. 22,085,000
620,000 Intel Corp. 37,936,250
140,000 International Business Machines Corp. 29,286,250
350,000 Lucent Technologies Inc.+ 21,043,750
420,000 Microsoft Corp.* 34,151,250
160,000 Motorola, Inc. 12,820,000
285,000 SCI Systems, Inc.* 10,847,812
385,000 Seagate Technology, Inc.* 10,731,875
460,000 Telefonaktiebolaget LM Ericsson ADR 12,420,000
350,000 Unisys Corp.* 11,003,125
105,000 Xerox Corp.+ 6,168,750
- ------------------------------------------------------------------------------------------
369,111,563
- ------------------------------------------------------------------------------------------
Telephone -- 5.4%
375,000 AT&T Corp.+ 18,937,500
40,000 Bell Atlantic Corp.+ 2,305,000
325,000 BellSouth Corp.+ 14,543,750
305,000 MCI Worldcom, Inc.* 25,067,187
260,000 SBC Communications Inc. 14,560,000
135,000 US West, Inc. 7,062,187
- ------------------------------------------------------------------------------------------
82,475,624
- ------------------------------------------------------------------------------------------
Transportation -- 1.1%
125,000 AMR Corp.* 8,726,563
240,000 Southwest Airlines Co. 7,815,000
- ------------------------------------------------------------------------------------------
16,541,563
- ------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 45
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Growth and Income Fund
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
============================================================================================
<S> <C> <C>
Utilities -- 2.5%
160,000 Duke Energy Corp. $ 8,960,000
278,000 Edison International 6,811,000
770,000 Niagara Mohawk Holdings Inc.* 10,298,750
235,000 PECO Energy Co. 11,147,812
- --------------------------------------------------------------------------------------------
37,217,562
- --------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $1,212,069,118) 1,504,439,380
============================================================================================
CONVERTIBLE PREFERRED STOCK -- 0.9%
97,700 Merrill Lynch & Co., Inc. 6.000%, Series COX@ 6,130,675
78,500 Microsoft Corp., 2.750%, Series A++ 7,800,938
- --------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost -- $8,505,075) 13,931,613
============================================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $1,220,574,193) 1,518,370,993
============================================================================================
<CAPTION>
FACE
AMOUNT SECURITY VALUE
============================================================================================
REPURCHASE AGREEMENT -- 0.1%
$2,033,000 Chase Manhattan Bank, 4.770% due 5/3/99; Proceeds at maturity --
$2,033,806; (Fully collateralized by U.S. Treasury Notes, 8.125%
due 8/15/21; Market value -- $2,078,475) (Cost -- $2,033,000) 2,033,000
============================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $1,222,607,193**) $1,520,403,993
============================================================================================
</TABLE>
+ All or a portion of this security is on loan (See Note 10).
* Non-incoming producing security.
@ Security is convertible into 97,700 shares of common stock.
++ Security is convertible into 5,518 warrants and 237,482 shares of common
stock.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
46 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
International Equity Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
COMMON STOCK -- 97.3%
Australia -- 0.5%
53,235 Coca-Cola Amatil Ltd. $ 253,058
- ------------------------------------------------------------------------------------------
Belgium -- 2.4%
10,000 Telinfo NV 1,274,889
- ------------------------------------------------------------------------------------------
Canada -- 7.6%
40,000 Celestica Inc.* 1,593,078
40,000 JDS FITEL Inc.* 2,417,084
- ------------------------------------------------------------------------------------------
4,010,162
- ------------------------------------------------------------------------------------------
Finland -- 4.6%
20,000 Nokia Oyj 1,483,749
100,000 Raisio Group PLC* 915,170
- ------------------------------------------------------------------------------------------
2,398,919
- ------------------------------------------------------------------------------------------
France -- 4.8%
8,000 Axa 1,034,300
10,000 Equant NV* 908,821
5,000 Sidel SA 603,060
- ------------------------------------------------------------------------------------------
2,546,181
- ------------------------------------------------------------------------------------------
Germany -- 5.7%
5,000 Global Telesystem Holdings Ltd.* 329,375
12,000 Mannesmann AG 1,573,034
2,000 MLP AG 1,122,538
- ------------------------------------------------------------------------------------------
3,024,947
- ------------------------------------------------------------------------------------------
Hong Kong -- 5.0%
35,527 HSBC Holdings PLC 1,320,144
120,000 Hutchison Whampoa Ltd. 1,076,060
30,000 Sun Hung Kai Properties Ltd. 263,209
- ------------------------------------------------------------------------------------------
2,659,413
- ------------------------------------------------------------------------------------------
Ireland -- 6.2%
60,542 Bank of Ireland 1,213,813
20,000 Elan Corp. PLC ADR* 1,030,000
75,685 Irish Continental Group PLC 1,030,962
- ------------------------------------------------------------------------------------------
3,274,775
- ------------------------------------------------------------------------------------------
Israel -- 1.5%
30,000 Amdocs Ltd. ADR* 800,625
- ------------------------------------------------------------------------------------------
Italy -- 4.4%
66,000 Alleanza Assicurazioni 790,662
180,000 Istituto Nazionale delle Assicurazioni 475,909
175,000 Telecom Italia Mobile S.p.A. ADR 1,054,984
- ------------------------------------------------------------------------------------------
2,321,555
- ------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 47
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
International Equity Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Japan -- 8.1%
100,000 Kikkoman Corp. $ 680,266
10,000 Matsushita Communication Industrial Co., Ltd. 717,966
10 NTT Mobile Communication Network, Inc. 586,437
7,000 Orix Corp. 563,566
7,000 Sony Corp. 653,877
48,000 Terumo Corp. 1,045,533
- ------------------------------------------------------------------------------------------
4,247,645
- ------------------------------------------------------------------------------------------
Mexico -- 2.0%
500,000 Grupo Industrial Bimbo SA de CV - Series A 1,076,840
- ------------------------------------------------------------------------------------------
Netherlands -- 4.4%
75,000 ING Groep NV Warrants, Expire 3/15/01* 1,294,991
11,000 Prolion Holding NV* 1,029,963
- ------------------------------------------------------------------------------------------
2,324,954
- ------------------------------------------------------------------------------------------
Norway -- 3.8%
6,250 Fast Search and Transfer ASA* 128,427
13,600 Opticom ASA* 471,585
35,000 Tomra Systems ASA 1,393,437
- ------------------------------------------------------------------------------------------
1,993,449
- ------------------------------------------------------------------------------------------
Singapore -- 0.5%
48,800 Venture Manufacturing (Singapore) Ltd. 267,989
- ------------------------------------------------------------------------------------------
Spain -- 3.2%
50,000 Indra Sistemas SA 481,390
25,500 Telefonica SA 1,196,518
- ------------------------------------------------------------------------------------------
1,677,908
- ------------------------------------------------------------------------------------------
Sweden -- 5.4%
25,000 Electrolux AB ADR 1,025,000
29,000 Icon Medialab International AB* 1,065,391
50,000 Securitas AB 743,074
350 TeleLarm Care AB* 4,099
- ------------------------------------------------------------------------------------------
2,837,564
- ------------------------------------------------------------------------------------------
Switzerland -- 3.0%
60,000 Mettler-Toledo International Inc.* 1,567,500
- ------------------------------------------------------------------------------------------
United Kingdom -- 24.2%
150,000 Boxmore International PLC 373,140
100,000 Capita Group PLC 1,058,640
108,000 COLT Telecom Group PLC* 2,004,959
70,000 Energis PLC* 1,909,255
75,000 Galen Holdings PLC 576,617
25,000 Guardian iT PLC 246,546
90,000 Hays PLC 1,004,943
125,705 Misys PLC 1,180,989
100,000 Rentokil Initial PLC 584,063
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
48 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
International Equity Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
United Kingdom -- 24.2% (continued)
70,000 Serco Group PLC $ 1,549,720
300,000 TeleWest Communications PLC* 1,383,880
5,000 Vodafone Group PLC 896,875
- ------------------------------------------------------------------------------------------
12,769,627
- ------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $34,740,643) 51,328,000
==========================================================================================
<CAPTION>
FACE
AMOUNT SECURITY VALUE
==========================================================================================
<S> <C> <C>
REPURCHASE AGREEMENT -- 2.7%
$1,432,000 CS First Boston Corp., 4.850% due 5/3/99; Proceeds at maturity --
$1,432,579; (Fully collateralized by U.S. Treasury Bills due
7/29/99; Market value -- $1,461,373) (Cost -- $1,432,000) 1,432,000
==========================================================================================
TOTAL INVESTMENTS-- 100%
(Cost -- $36,172,643**) $52,760,000
==========================================================================================
</TABLE>
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 49
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Mid Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
COMMON STOCK -- 72.2%
Aerospace/Defense -- 1.7%
6,000 Kroll-O'Gara Co.*+ $143,625
- ------------------------------------------------------------------------------------------
Airlines -- 0.8%
2,000 Southwest Airlines Co. 65,125
- ------------------------------------------------------------------------------------------
Automobiles -- 1.9%
2,600 Harley-Davidson, Inc.+ 155,025
- ------------------------------------------------------------------------------------------
Banking -- 1.8%
900 Commerce Bancorp, Inc. 39,712
1,900 First Tennessee National Corp. 81,937
1,300 North Fork Bancorporation, Inc. 29,250
- ------------------------------------------------------------------------------------------
150,899
- ------------------------------------------------------------------------------------------
Beverages -- 0.6%
2,200 The Pepsi Bottling Group, Inc.* 46,337
- ------------------------------------------------------------------------------------------
Broadcast Media -- 4.6%
1,200 Cablevision Systems Corp., Class A Shares* 92,850
2,300 Entercom Communications Corp.* 85,388
5,800 Imax Corp.*+ 109,837
1,900 TCA Cable TV, Inc. 94,644
- ------------------------------------------------------------------------------------------
382,719
- ------------------------------------------------------------------------------------------
Communications - Equipment -- 3.4%
1,300 ADC Telecommunications, Inc.* 62,156
1,400 L-3 Communications Holdings, Inc.* 68,338
2,700 Valassis Communications, Inc.+ 151,200
- ------------------------------------------------------------------------------------------
281,694
- ------------------------------------------------------------------------------------------
Computer Hardware -- 1.2%
800 Lexmark International Group, Inc., Class A Shares*+ 98,800
- ------------------------------------------------------------------------------------------
Computer Software -- 5.1%
1,000 Citrix Systems, Inc.* 42,500
2,100 Electronic Arts Inc.*+ 106,706
2,300 Fiserv, Inc.*+ 134,694
400 Intuit Inc.* 34,450
1,400 Mercury Interactive Corp.* 39,462
700 New Era of Networks, Inc.* 26,294
600 VERITAS Software Corp.* 42,600
- ------------------------------------------------------------------------------------------
426,706
- ------------------------------------------------------------------------------------------
Computer Software - Services -- 0.2%
1,100 Cadence Design Systems, Inc.* 14,919
- ------------------------------------------------------------------------------------------
Consumer Products -- 0.4%
1,000 The Dial Corp. 34,000
- ------------------------------------------------------------------------------------------
Electronics - Instruments -- 0.4%
1200 Molex Inc. 34,650
- ------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
50 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Mid Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Electronics -- Semiconductors -- 1.6%
2,400 Linear Technology Corp.+ $136,500
- ------------------------------------------------------------------------------------------
Entertainment -- 1.7%
4,100 Premier Parks Inc.+ 141,706
- ------------------------------------------------------------------------------------------
Financial -- 7.8%
2,300 Ambac Financial Group, Inc.+ 138,862
1,000 Capital One Financial Corp.+ 173,687
2,000 CIT Group, Inc., Class A Shares 65,000
2,600 Countrywide Credit Industries, Inc. 117,813
500 E*TRADE Group, Inc.* 57,750
725 Providian Financial Corp. 93,570
- ------------------------------------------------------------------------------------------
646,682
- ------------------------------------------------------------------------------------------
Foods -- 1.4%
3,600 Keebler Foods Co.*+ 115,650
- ------------------------------------------------------------------------------------------
Health Care -- Drugs -- 4.2%
1,700 ALZA Corp.* 57,056
1,100 Elan Corp. PLC, Sponsored ADR* 56,650
1,800 Sepracor Inc.*+ 152,100
2,100 Watson Pharmaceuticals, Inc.* 85,050
- ------------------------------------------------------------------------------------------
350,856
- ------------------------------------------------------------------------------------------
Household Furniture & Apparel -- 0.9%
2,200 Bed Bath & Beyond Inc.* 78,512
- ------------------------------------------------------------------------------------------
Industrial Services -- 1.5%
2,500 AES Corp.+ 125,000
- ------------------------------------------------------------------------------------------
Industrial Specialties -- 0.5%
1,000 Ecolab Inc. 41,937
- ------------------------------------------------------------------------------------------
Insurance -- 3.5%
2,700 ACE Ltd. 81,675
5,700 Annuity and Life Re Holdings, Ltd.+ 112,575
400 NAC Re Corp. 21,800
700 Nationwide Financial Services, Inc., Class A Shares 32,463
700 XL Capital Ltd., Class A Shares 42,481
- ------------------------------------------------------------------------------------------
290,994
- ------------------------------------------------------------------------------------------
Internet Content -- 1.8%
145 Broadcast.com Inc.* 18,596
100 CMG Information Services, Inc.* 25,456
150 eBay Inc. 31,219
150 Excite, Inc.* 21,900
300 VerticalNet, Inc.* 34,050
300 Xoom.com, Inc.* 21,000
- ------------------------------------------------------------------------------------------
152,221
- ------------------------------------------------------------------------------------------
Manufacturing -- 2.4%
1,400 Danaher Corp. 93,013
1,000 Waters Corp.*+ 105,125
- ------------------------------------------------------------------------------------------
198,138
- ------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 51
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Mid Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Medical - Biomedical -- 1.7%
3,500 Affymetrix, Inc.*+ $143,063
- ------------------------------------------------------------------------------------------
Office Supplies & Forms -- 1.2%
1,400 Avery Dennison Corp.+ 95,550
- ------------------------------------------------------------------------------------------
Oil - Domestic -- 1.7%
1,800 Anadarko Petroleum Corp. 68,288
2,600 Newfield Exploration Corp.* 69,875
- ------------------------------------------------------------------------------------------
138,163
- ------------------------------------------------------------------------------------------
Oilfield Services & Equipment -- 1.4%
1,100 Cooper Cameron Corp.* 42,488
2,100 Diamond Offshore Drilling, Inc. 69,431
- ------------------------------------------------------------------------------------------
111,919
- ------------------------------------------------------------------------------------------
Real Estate Investment Trusts -- 1.4%
6,900 IndyMac Mortgage Holdings, Inc.+ 113,850
- ------------------------------------------------------------------------------------------
Retail -- Apparel -- 2.0%
1,100 Abercrombie & Fitch Co., Class A Shares*+ 104,638
1,600 The Children's Place Retail Stores, Inc.* 58,000
- ------------------------------------------------------------------------------------------
162,638
- ------------------------------------------------------------------------------------------
Retail -- Drug Stores -- 0.5%
1,500 Duane Reade Inc.* 40,219
- ------------------------------------------------------------------------------------------
Retail -- Specialty -- 3.1%
2,900 Best Buy Co., Inc.*+ 138,475
1,200 Fred Meyer, Inc.* 64,950
2,500 Office Depot, Inc.* 55,000
- ------------------------------------------------------------------------------------------
258,425
- ------------------------------------------------------------------------------------------
Services -- Advertising -- 1.6%
5,200 Outdoor Systems, Inc.*+ 130,975
- ------------------------------------------------------------------------------------------
Services -- Commercial & Construction -- 0.9%
1,100 Cintas Corp. 75,625
- ------------------------------------------------------------------------------------------
Services & Publishing - Finance -- 2.4%
400 Coinstar, Inc.* 9,400
900 The Dun & Bradstreet Corp. 33,075
3,400 FactSet Research Systems Inc.* 158,525
- ------------------------------------------------------------------------------------------
201,000
- ------------------------------------------------------------------------------------------
Specialized Services -- 1.0%
1,900 Sun International Hotels Ltd.* 80,394
- ------------------------------------------------------------------------------------------
Telecommunications -- 2.4%
3,000 CenturyTel, Inc. 120,750
400 COLT Telecom Group, PLC* 30,550
500 Covad Communications Group, Inc.* 48,000
- ------------------------------------------------------------------------------------------
199,300
- ------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
52 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Mid Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
==========================================================================================
<S> <C> <C>
Transport -- 1.5%
1,000 Kansas City Southern Industries, Inc. $ 59,563
3,300 Knightsbridge Tankers Ltd. 62,081
- ------------------------------------------------------------------------------------------
121,644
- ------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $5,920,021) 5,985,460
==========================================================================================
<CAPTION>
FACE
AMOUNT SECURITY VALUE
==========================================================================================
<S> <C> <C>
REPURCHASE AGREEMENTS -- 27.8%
$1,305,000 Chase Manhattan Bank, 4.770% due 5/3/99; Proceeds at maturity --
$1,305,516; (Fully collateralized by U.S. Treasury Bonds, 8.125%
due 8/15/21; Market value -- $1,333,850) 1,305,000
1,000,000 Morgan Stanley Dean Witter & Co., 4.840% due 5/3/99; Proceeds at
maturity -- $1,000,401; (Fully collateralized by U.S. Treasury
Bonds, 14.000% due 11/15/11; Market value -- $1,020,110) 1,000,000
==========================================================================================
TOTAL REPURCHASE AGREEMENTS
(Cost -- $2,305,000) 2,305,000
==========================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $8,225,021**) $8,290,460
==========================================================================================
</TABLE>
* Non-income producing security.
+ This security has been segregated by the custodian for open futures
contracts.
** Aggregate cost for Federal income tax purpose is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 53
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================================================
<S> <C> <C> <C>
Arizona -- 0.6%
$ 400,000 A Maricopa County, AZ Industrial Development Authority, Multi-Family Housing
Revenue, (Laguna Port Apartments Project), 6.500% due 7/1/09 $ 427,500
225,000 NR Scottsdale, AZ IDA Revenue, First Mortgage Westminster Village,
Series A, 8.250% due 6/1/15 252,844
- -------------------------------------------------------------------------------------------------------------------------------
680,344
- -------------------------------------------------------------------------------------------------------------------------------
California -- 8.2%
1,000,000 AAA California Health Facilities Financial Authority Revenue, Kaiser Permanente,
Series A, FSA-Insured, 5.500% due 6/1/22 1,050,000
1,000,000 A1* California State Public Works Board Lease Revenue, California State
University, Series C, 5.250% due 10/1/14 1,042,500
5,000,000 AAA Central Valley Financial Authority, (CA Cogeneration Project, Carson Ice),
MBIA-Insured, 5.200% due 7/1/20 5,031,250
560,000 NR Del Mar, CA Race Track Authority Revenue, 6.000% due 8/15/01 576,800
200,000 A-1+ Irvine Ranch, CA Water District, Series A, 4.250% due 5/1/09(b) 200,000
Orange County, CA Recovery:
1,000,000 AAA Series A, COP, MBIA-Insured, 6.000% due 7/1/08 1,132,500
1,000,000 AAA Series A, MBIA-Insured, 6.000% due 6/1/09 1,133,750
- -------------------------------------------------------------------------------------------------------------------------------
10,166,800
- -------------------------------------------------------------------------------------------------------------------------------
Colorado -- 6.8%
Arapahoe County, CO Capital Improvement Transportation Highway Revenue,
E-470 Highway, (Pre-Refunded -- Escrowed with U.S. government
securities to 8/31/05):
7,000,000 Aaa* Call @ 20.8626, zero coupon due 8/31/26(c)(d) 1,120,000
1,000,000 Aaa* Call @ 103, 7.000% due 8/31/26(c)(d) 1,187,500
250,000 AAA Arvada, CO Sales & Use Tax Revenue, FGIC-Insured,
(Pre-Refunded -- Escrowed with U.S. government securities to 12/1/02
Call @ 100), 6.250% due 12/1/12(d) 271,562
250,000 AAA Arvada, CO Sales & Use Tax Revenue, Refunding & Improvement,
FGIC-Insured, 6.250% due to 12/1/12 269,062
Berry Creek Metropolitan District, CO Refunding & Improvement:
150,000 NR 8.250% due 12/1/11 161,812
100,000 NR Pre-Refunded -- Escrowed with U.S. government securities to 12/1/01
Call @ 101, 8.250% due 12/1/11(d) 112,125
1,000,000 A Colorado Health Facilities Authority Revenue, Series B, 5.350% due 8/1/15 1,016,250
1,000,000 AAA E-470 Public Highway Authority, CO, MBIA-Insured, Series A,
5.000% due 9/1/17 991,250
400,000 NR Edgewater, CO Redevelopment Authority Tax Increment Revenue,
(Edgewater Redevelopment Project), 6.750% due 12/1/08 432,500
Highlands Ranch Metropolitan District:
1,000,000 AAA FSA-Insured, 6.500% due 6/15/10 1,176,250
500,000 NR Refunding & Improvement, Series A, (Pre-Refunded -- Escrowed with
U.S. government securities to 9/1/02 Call @ 103),
7.300% due 9/1/12(d) 568,125
1,000,000 AAA Larimer County, CO COP, MBIA-Insured, 5.650% due 12/1/16 1,067,500
- -------------------------------------------------------------------------------------------------------------------------------
8,373,936
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
54 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================================================
<S> <C> <C> <C>
Connecticut -- 0.9%
Mashantucket Western Pequot Tribe, Connecticut Special Revenue,
Sub-144A, Series A:
$ 505,000 Baa2* 6.500% due 9/1/05(e) $ 561,181
495,000 AAA Escrowed to maturity with U.S. government securities,
6.500% due 9/1/05(e) 562,444
- -------------------------------------------------------------------------------------------------------------------------------
1,123,625
- -------------------------------------------------------------------------------------------------------------------------------
Delaware -- 0.2%
250,000 Aaa* Delaware State EDA, Osteopathic Hospital Association, Series A,
(Escrowed to maturity with U.S. government securities),
6.750% due 1/1/13(d) 292,500
- -------------------------------------------------------------------------------------------------------------------------------
District of Columbia -- 0.4%
500,000 AAA District of Columbia, Series A, AMBAC-Insured, (Pre-Refunded -- Escrowed with
U.S. government securities to 6/1/00 Call @ 102), 7.500% due 6/1/10(d) 531,580
- -------------------------------------------------------------------------------------------------------------------------------
Florida -- 4.2%
1,000,000 AAA Broward County, FL Airport System Revenue, Passenger Facility,
AMBAC-Insured, 4.750% due 10/1/23 947,500
375,000 A- Broward County, FL Resource Recovery Revenue, Broward Waste Energy,
7.950% due 12/1/08 394,301
1,000,000 AAA Florida State Correctional Privatization Community, COP, AMBAC-Insured,
5.000% due 8/1/17 1,001,250
2,500,000 AAA Orange County, FL Tourist Development Tax Revenue, Series A,
AMBAC-Insured, 4.750% due 10/1/24 2,362,500
500,000 Aaa* St. Petersburg, FL Health Facilities Authority, Allegany Health Systems,
Series B, (Pre-Refunded -- Escrowed with U.S. government securities to
12/1/99 Call @ 102), 7.750% due 12/1/15(d) 522,600
- -------------------------------------------------------------------------------------------------------------------------------
5,228,151
- -------------------------------------------------------------------------------------------------------------------------------
Hawaii -- 1.6%
2,000,000 A Hawaii State, Department of Budget & Finance, Special Purpose Revenue,
Kaiser Permanente, Series A, 5.100% due 3/1/14 1,977,500
- -------------------------------------------------------------------------------------------------------------------------------
Illinois -- 5.4%
500,000 AA Chicago, IL Metropolitan Water Reclamation District, (Partially Escrowed to
maturity with U.S. government securities), 7.000% due 1/1/11 603,765
500,000 AAA Chicago, IL Wastewater Transmission Revenue, FGIC-Insured,
6.300% due 1/1/12(c) 550,625
500,000 AAA Cook County, IL Community College, COP, FGIC-Insured, 8.750% due 1/1/07 640,625
500,000 AAA Cook County, IL MBIA-Insured, (Pre-Refunded -- Escrowed with U.S.
government securities to 11/1/00 Call @ 102), 7.000% due 11/1/10(d) 535,625
250,000 NR Crestwood, IL Tax Increment Revenue, 7.250% due 12/1/08 265,000
500,000 AAA Du Page County, IL (StormWater Project), (Pre-Refunded -- Escrowed with
U.S. government securities to 1/1/02 Call @ 102),
6.550% due 1/1/21(c)(d) 544,375
250,000 Baa2* Illinois Development Finance Authority Revenue, Series A,
(Pre-Refunded -- Escrowed with U.S. government securities to 2/1/00
Call @ 102), 8.500% due 2/1/15(d) 264,272
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 55
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================================================
<S> <C> <C> <C>
Illinois -- 5.4% (continued)
Illinois Health Facilities Authority Revenue:
$ 500,000 Aaa* Delnor Community Hospital Project, (Pre-Refunded -- Escrowed with
U.S. government securities to 5/15/99 Call @ 102),
8.000% due 5/15/19(c)(d) $ 510,635
500,000 Aaa* Illinois Masonic Medical Center, Series B, (Pre-Refunded -- Escrowed with
U.S. government securities to 10/1/99 Call @ 102),
7.700% due 10/1/19(d) 518,730
250,000 NR Memorial Hospital, (Pre-Refunded-- Escrowed with U.S. government
securities to 5/1/02 Call @ 102), 7.250% due 5/1/24(d) 279,062
300,000 Baa2* Mercy Center for Health Care Services, (Pre-Refunded -- Escrowed with
U.S. government securities to 10/1/02 @ 102), 6.625% due 10/1/12(d) 332,625
500,000 AA Northwestern Memorial Hospital, 6.750% due 8/15/11 535,000
67,000 AAA Series A, MBIA-Insured, 7.900% due 8/15/03 67,870
40,000 AAA Series A, MBIA-Insured, (Escrowed to maturity with U.S. government
securities), 7.900% due 8/15/03(d) 45,500
1,000,000 AAA Sherman Health System, AMBAC-Insured, 5.250% due 8/1/17 1,010,000
- -------------------------------------------------------------------------------------------------------------------------------
6,703,709
- -------------------------------------------------------------------------------------------------------------------------------
Indiana -- 1.0%
100,000 NR Carmel, IN Retirement Housing Revenue, (Beverly Enterprises Indiana
Project), 8.750% due 12/1/08 110,375
500,000 Aaa* Merrillville, IN Multi-School Building Corporation, (Pre-Refunded -- Escrowed
with U.S. government securities to 7/15/00 Call @ 102),
7.500% due 7/15/09(d) 533,750
500,000 AAA St. Joseph's County, IN Hospital Authority Facilities Revenue, (Memorial
Hospital South Bend Project), MBIA-Insured, (Pre-Refunded -- Escrowed
with U.S. government securities to 2/15/03 Call @ 102),
6.250% due 8/15/22(d) 551,875
- -------------------------------------------------------------------------------------------------------------------------------
1,196,000
- -------------------------------------------------------------------------------------------------------------------------------
Iowa -- 0.8%
1,000,000 AAA Des Moines, IA Parking Facility Revenue, FGIC-Insured, 7.250% due 7/1/15 1,024,860
- -------------------------------------------------------------------------------------------------------------------------------
Louisiana-- 0.9%
1,000,000 AAA Louisiana Local Government, Environmental Facilities Community
Development Authority Revenue, (Capital Projects & Equipment Acquisition),
AMBAC-Insured, 4.500% due 12/1/18 931,250
200,000 NR Louisiana Public Facilities Authority Revenue, Industrial Development,
Beverly Enterprise, 8.250% due 9/1/08 217,500
- -------------------------------------------------------------------------------------------------------------------------------
1,148,750
- -------------------------------------------------------------------------------------------------------------------------------
Massachusetts -- 3.0%
500,000 Aaa* Boston, MA Boston City Hospital, Series A, FHA-Insured,
7.625% due 2/15/21 536,250
1,000,000 AAA Holyoke, MA GO, Series B, FSA-Insured, 6.000% due 6/15/07 1,118,750
5,000 BBB+ Massachusetts Municipal Wholesale Electric Co., Power Supply System,
Series A, 8.750% mandatory tender 1/1/05 6,075
1,000,000 AAA Massachusetts State HFA Housing Development, Series B, MBIA-Insured,
5.300% due 12/1/17 1,016,250
250,000 Aa3* Massachusetts State HFA Housing Revenue, Single-Family, Series 31,
6.450% due 12/1/16 265,625
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
56 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================================================
<S> <C> <C> <C>
Massachusetts -- 3.0% (continued)
$ 150,000 NR Massachusetts State Industrial Finance Agency, Industrial Revenue,
Beverly Enterprises, 8.000% due 5/1/02 $ 159,375
500,000 AAA Massachusetts State Water Resource Authority, Series A, (Pre-Refunded --
Escrowed with U.S. government securities to 4/1/00 Call @ 102),
7.500% due 4/1/16(c)(d) 528,735
- -------------------------------------------------------------------------------------------------------------------------------
3,631,060
- -------------------------------------------------------------------------------------------------------------------------------
Michigan -- 5.2%
500,000 A++ Detroit, MI Development Area No. 1, Series A, (Pre-Refunded -- Escrowed with
U.S. government securities to 7/1/99 Call @ 102), 7.600% due 7/1/10(d) 513,250
2,000,000 A- Detroit, MI Downtown Development Authority Tax Increment Revenue,
(Development Area No. 1 Project), Series C, (Pre-Refunded -- Escrowed with
U.S. government securities to 7/1/06 Call @ 102), 6.250% due 7/1/25(d) 2,282,500
200,000 AAA Huron Valley, MI School District, FGIC-Insured, 7.100% due 5/1/08 217,250
500,000 Aaa* Kent Hospital Finance Authority Michigan Hospital, Butterworth Hospital
Series A, (Pre-Refunded -- Escrowed with U.S. government securities to
1/15/00 Call @ 102), 7.250% due 1/15/12(c)(d) 523,545
2,000,000 AA Michigan State Building Authority Revenue, Refunding Facilities Program,
Series 1, 4.750% due 10/15/17 1,927,500
1,000,000 AAA Western Michigan University Revenue, FGIC-Insured, 5.125% due 11/15/22 993,750
- -------------------------------------------------------------------------------------------------------------------------------
6,457,795
- -------------------------------------------------------------------------------------------------------------------------------
Minnesota -- 0.1%
150,000 NR Minneapolis, MN Health Care Facilities Revenue, (Ebenezer Social Project),
Series A, 7.000% due 7/1/12 152,625
- -------------------------------------------------------------------------------------------------------------------------------
Mississippi -- 0.4%
500,000 NR Ridgeland, MS Urban Renewal Revenue, (The Orchard Limited Project),
Series A, 7.750% due 12/1/15 541,250
- -------------------------------------------------------------------------------------------------------------------------------
Missouri -- 6.7%
2,750,000 AAA Kansas City, MO Municipal Assistance, MBIA-Insured, 5.000% due 4/15/20 2,725,937
Missouri Health State & Educational Facilities Authority Revenue:
500,000 BBB+ Heartland Health System Project, 6.875% due 11/15/04 546,250
500,000 BBB+ Lake of the Ozarks General Hospital, 6.000% due 2/15/06 533,125
250,000 BBB+ Refunding & Improvement -- Heartland Health, 8.125% due 10/1/10 259,798
1,000,000 AAA Richmond Heights, MO COP, (Capital Improvement Project), Series A,
MBIA-Insured, 5.300% due 8/15/17 1,020,000
1,615,000 AAA St. Charles County, MO IDA, Westchester Village Apartments,
FNMA-Collateralized, 6.050% due 2/1/17 1,705,844
1,500,000 AAA St. Louis, MO Board of Education, Series B, FGIC-Insured,
5.000% due 4/1/18 1,488,750
- -------------------------------------------------------------------------------------------------------------------------------
8,279,704
- -------------------------------------------------------------------------------------------------------------------------------
Nevada -- 2.9%
200,000 A-1+ Clark County, NV IDR, (Cogeneration Association I Project),
4.250% due 11/1/21(b) 200,000
2,000,000 AAA Clark County, NV IDR, (Nevada Power Co. Project), AMBAC-Insured,
7.200% due 10/1/22 2,230,000
1,200,000 AAA Las Vegas, NV Sewer, Series A, FGIC-Insured, 5.000% due 11/1/17 1,195,500
- -------------------------------------------------------------------------------------------------------------------------------
3,625,500
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 57
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================================================
<S> <C> <C> <C>
New Hampshire -- 0.8%
New Hampshire Higher Educational & Health Facilities Authority Revenue:
$ 370,000 NR First Mortgage, Odd Fellows Home, 9.000% due 6/1/14 $ 431,975
520,000 BBB New London Hospital Association Project, 7.500% due 6/1/05 592,800
- -------------------------------------------------------------------------------------------------------------------------------
1,024,775
- -------------------------------------------------------------------------------------------------------------------------------
New Jersey -- 4.1%
1,500,000 Aa2* Mercer County, NJ Improvement Authority Revenue, zero coupon due 4/1/11 862,500
1,000,000 AAA Middlesex County, NJ COP, MBIA-Insured, 5.200% due 6/15/18 1,015,000
1,000,000 AAA New Jersey Building Authority State Building Revenue, MBIA-Insured,
5.000% due 6/15/18 997,500
880,000 NR New Jersey EDA, Holt Hauling & Warehousing, Series G,
8.400% due 12/15/15 943,800
1,000,000 AAA New Jersey State Turnpike Authority, Series C, MBIA-Insured,
6.500% due 1/1/16 1,184,350
- -------------------------------------------------------------------------------------------------------------------------------
5,003,150
- -------------------------------------------------------------------------------------------------------------------------------
New Mexico -- 0.9%
1,000,000 A+ Farmington, NM PCR, Southern California Edison Co.,
Series A, 7.200% due 4/1/21 1,076,250
- -------------------------------------------------------------------------------------------------------------------------------
New York -- 9.9%
1,000,000 A- Long Island Power Authority, NY Electric System Revenue, Series A,
5.500% due 12/1/29 1,023,750
350,000 NR New York, NY City Industrial Development Agency Civic Facility Revenue,
(Marymount Manhattan College Project), 7.000% due 7/1/23 372,313
350,000 A-1+ New York, NY GO, Subseries A-4, 4.000% due 8/1/22(b) 350,000
1,000,000 Aaa* New York, NY, Series B, (Pre-Refunded -- Escrowed with U.S. government
securities to 8/15/04 Call @ 101), 7.000% due 8/15/16(d) 1,156,250
500,000 Aaa* New York City, NY Municipal Water Financing Authority, Water & Sewer
System Revenue, Series C, (Pre-Refunded -- Escrowed with U.S. government
securities to 6/15/01 Call @ 101.50), 7.750% due 6/15/20(d) 549,375
1,000,000 AA New York City, NY Transitional Finance Authority Revenue, Series A,
5.000% due 8/15/17 998,750
New York State Dormitory Authority Revenue, City University System:
1,000,000 AAA Series A, FGIC-Insured, 5.000% due 7/1/16 1,003,750
345,000 BBB+ Series C, 6.000% due 7/1/16 352,331
155,000 BBB+ Series C, (Pre-Refunded -- Escrowed with U.S. government securities to
7/1/00 Call @ 100), 6.000% due 7/1/16(d) 159,650
3,000,000 A- New York State Dormitory Authority Revenue, Mental Health Services
Facilities Improvement, Series B, 5.375% due 2/15/26 3,033,750
750,000 Aaa* New York State Dormitory Authority Revenue, State University Educational
Facilities Series A, (Pre-Refunded -- Escrowed with U.S. government
securities to 5/15/00 Call @ 102), 7.700% due 5/15/12(d) 798,525
1,865,000 Aa2* New York State Mortgage Agency Revenue, Homeowner Mortgage,
Series 80, 5.100% due 10/1/17 1,871,994
500,000 AAA Triborough Bridge & Tunnel Authority Revenue, Series R, (Pre-Refunded --
Escrowed with U.S. government securities to 1/1/00 Call @ 101.50),
7.375% due 1/1/16(d) 520,815
- -------------------------------------------------------------------------------------------------------------------------------
12,191,253
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
58 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================================================
<S> <C> <C> <C>
North Carolina -- 0.6%
$ 500,000 AAA North Carolina Eastern Municipal Power Agency, Series A, (Pre-Refunded --
Escrowed with U.S. government securities to 1/1/22 Call @ 100),
4.500% due 1/1/24(d) $ 471,875
250,000 AAA North Carolina Medical Care, Community Health Care Facilities Revenue,
(Stanly Memorial Hospital Project), (Pre-Refunded -- Escrowed with
U.S. government securities to 10/1/99 Call @ 102),
7.800% due 10/1/19(d) 259,518
- -------------------------------------------------------------------------------------------------------------------------------
731,393
- -------------------------------------------------------------------------------------------------------------------------------
Ohio -- 5.8%
1,840,000 Aaa* Brecksville Broadview Heights Ohio City School District, FGIC-Insured,
6.500% due 12/1/16 2,106,800
500,000 AAA++ Cleveland, OH Parking Facilities Revenue Improvement, (Pre-Refunded --
Escrowed with U.S. government securities to 9/15/02 Call @ 102),
8.000% due 9/15/12(d) 575,000
500,000 NR Cuyahoga County, OH Health Care Facilities Revenue, Judson Retirement
Community, Series A, 7.000% due 11/15/10 535,000
660,000 Aa* Delaware County, OH Health Care Facilities Revenue, FHA-Insured,
6.550% due 2/1/35 739,200
1,000,000 AAA Greater Cincinnati, OH Elderly Housing Development Corp.,
Mortgage Revenue, Cambridge Apartments, Series A, FHA-Insured,
6.600% due 8/1/25 1,088,750
1,000,000 BBB Miami County, OH Hospital Facilities Refunding & Improvement,
Upper Valley Medical Center, Series A, 6.000% due 5/15/06 1,070,000
1,000,000 Baa2* Ohio State Water Development Authority, Pollution Control Facilities
Revenue, (Ohio Edison Co. Project), 5.950% due 5/15/29 1,033,750
- -------------------------------------------------------------------------------------------------------------------------------
7,148,500
- -------------------------------------------------------------------------------------------------------------------------------
Oklahoma -- 0.5%
500,000 AAA Tulsa, OK Industrial Authority Hospital Revenue, Tulsa Medical Regional
Center, (Pre-Refunded -- Escrowed with U.S. government securities to
6/1/03 Call @ 102), 7.200% due 6/1/17(d) 573,125
- -------------------------------------------------------------------------------------------------------------------------------
Pennsylvania -- 6.3%
1,000,000 Baa1* Allegheny County, PA Hospital Development Authority Revenue,
(St. Francis Medical Center Project), 5.750% due 5/15/17 983,750
500,000 AAA Erie, PA Higher Education Building Authority, College Revenue, Series A,
(Pre-Refunded -- Escrowed with U.S. government securities to 7/1/99
Call @ 102), 8.500% due 6/1/15(d) 511,845
2,000,000 Aaa* Harrisburg, PA, Series D, AMBAC-Insured, zero coupon due 3/15/18 775,000
1,500,000 AAA Jim Thorpe, PA Area School District, Series A, MBIA-Insured,
5.375% due 3/15/22 1,528,125
500,000 NR Lebanon County, PA Health Facilities Authority, (United Church of Christ
Homes Project), 6.750% due 10/1/10 502,530
275,000 Aaa* Montgomery County, PA IDA, Pensburg Nursing & Rehabilitation Center,
(Pre-Refunded -- Escrowed with U.S. government securities to 3/31/04
Call @ 102.775), 7.625% due 7/1/18(d) 325,531
100,000 NR Northeastern Pennsylvania Hospital Authority Revenue, Nesbitt Memorial
Hospital, (Pre-Refunded -- Escrowed with U.S. government securities to
7/1/00 Call @ 102), 7.500% due 7/1/12(d) 106,500
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 59
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================================================
<S> <C> <C> <C>
Pennsylvania -- 6.3% (continued)
$ 500,000 AAA Pennsylvania State Higher Educational Facilities Authority, (Hahnemann
University Project), MBIA-Insured, (Pre-Refunded -- Escrowed with
U.S. government securities to 7/1/99 Call @ 102),
7.200% due 7/1/19(c)(d) $ 512,985
500,000 Baa3* Philadelphia, PA Hospitals & Higher Education Facilities Authority Revenue,
(Escrowed to maturity with U.S. government securities),
6.250% due 7/1/06(d) 563,125
1,400,000 AA Philadelphia, PA IDA, (Girard Estates Facilities Leasing Project),
5.000% due 5/15/27 1,359,750
250,000 AAA Scranton -- Lackawanna, PA Health & Welfare Authority Revenue, (Moses Taylor
Hospital Project), (Pre-Refunded -- Escrowed with U.S. government
securities to 7/1/01 Call @ 102), Series B, 8.500% due 7/1/20(d) 280,000
500,000 A Shenandoah Valley School District PA, Series B, zero coupon due 2/1/12 270,000
- -------------------------------------------------------------------------------------------------------------------------------
7,719,141
- -------------------------------------------------------------------------------------------------------------------------------
Rhode Island -- 0.5%
500,000 AAA Rhode Island Depositors Economic Protection Corp. Special Obligation,
Series A, FSA-Insured, (Pre-Refunded -- Escrowed with U.S. government
securities to 8/1/02 Call @ 102), 6.628% due 8/1/19(d) 553,125
- -------------------------------------------------------------------------------------------------------------------------------
Tennessee -- 0.9%
1,000,000 AAA Franklin, TN IDB Multi-Family Revenue, (Landings Apartment Project),
Series A, FSA-Insured, 5.900% due 10/1/16 1,053,750
- -------------------------------------------------------------------------------------------------------------------------------
Texas -- 17.3%
1,000,000 Aaa* Arlington, TX Independent School District, PSFG, 5.000% due 2/15/24 976,250
685,000 A Austin, TX Housing Finance Corp. Multi-Family Housing Revenue,
(Stassney Woods Apartments Projects), 6.500% due 10/1/10 730,381
500,000 NR Bexar County, TX Health Facilities Development Corp. Hospital Revenue,
(St. Luke's Lutheran Hospital Project), (Pre-Refunded-- Escrowed with
U.S. government securities to 5/1/03 Call @ 100), 7.900% due 5/1/18(d) 575,000
1,000,000 BBB+ Brazos River Authority, TX PCR, Utilities Electric Co., Series C,
5.550% due 6/1/30(f) 967,500
500,000 AAA Brownsville, TX Utility System Revenue, AMBAC-Insured, (Pre-Refunded --
Escrowed with U.S. government securities to 9/1/00 Call @ 102),
6.500% due 9/1/17(d) 530,000
500,000 A Ector County, TX Hospital District Revenue, 7.125% due 4/15/02 541,875
1,000,000 NR El Paso County, TX Parking Facility Revenue, Certificate of Obligation,
LOC Sanwa Bank, (Pre-Refunded -- Escrowed with U.S. government
securities to 8/15/99 @ 102), 6.500% due 8/15/11(d) 1,028,640
Frenship, TX ISD, PSFG:
500,000 Aaa* 5.500% due 2/15/03 521,875
500,000 Aaa* 5.500% due 2/15/04 520,000
1,400,000 A-1+ Guadalupe - Blanco River Authority,TX PCR (Central Power &
Light Co. Project), 4.150% due 11/1/15(b) 1,400,000
Harris County, TX Health Facilities Development Corp.:
250,000 NR Memorial Hospital System Project, (Pre-Refunded -- Escrowed with
U.S. government securities to 6/1/02 Call @ 102), 7.125% due 6/1/15(d) 275,313
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
60 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================================================
<S> <C> <C> <C>
Texas -- 17.3% (continued)
$1,250,000 AAA Thermal Utility Revenue Project, Series A, AMBAC-Insured,
7.250% due 2/15/15 $ 1,305,538
2,000,000 AA Houston, TX Independent School District, Series A, PSFG,
4.750% due 2/15/22 1,890,000
2,000,000 AA++ Houston, TX Refunded & Public Improvement, Series A, 4.750% due 3/1/17 1,922,500
1,500,000 AAA North East Independent School District, TX PSFG, 4.750% due 10/1/22 1,417,500
250,000 NR Rusk County, TX Health Facilities Corp. Hospital Revenue, (Henderson
Memorial Hospital Project), 7.750% due 4/1/13 267,188
Tarrant County, TX Health Facilities Development Corp. Hospital Revenue:
250,000 BBB 7.000% due 5/15/28 272,813
250,000 BBB Pre-Refunded -- Escrowed with U.S. government securities to 5/15/03
Call @ 102, 7.000% due 5/15/28(d) 283,750
1,370,000 AAA Temple, TX Junior College District Housing System & User Fee Revenue,
MBIA-Insured, 5.375% due 7/1/21 1,390,550
Texas General Services Community Partnership Interests,
(Office Building & Land Acquisition Project):
130,000 A- 7.000% due 8/1/14 133,865
330,000 A- 7.000% due 8/1/24 339,590
185,000 A+ Texas Housing Agency Mortgage Revenue Single-Family, Series A,
7.150% due 9/1/12 195,175
2,000,000 AAA Texas Water Development Board Revenue, Series B, 5.125% due 7/15/18 2,002,500
430,000 AAA Texas Water Financing Authority Revenue, AMBAC-Insured, (Pre-Refunded --
Escrowed with U.S. government securities to 8/15/99 Call @ 100),
7.500% due 8/15/13(d) 434,773
1,120,000 AAA West Texas Municipal Power Agency Revenue, MBIA-Insured,
5.000% due 2/15/18 1,101,800
250,000 NR Winters, TX Waterworks & Sewer System Revenue, FMHA-Collateralized,
(Pre-Refunded -- Escrowed with U.S. government securities to 8/1/03
Call @ 100), 8.500% due 8/1/17(d) 295,625
- -------------------------------------------------------------------------------------------------------------------------------
21,320,001
- -------------------------------------------------------------------------------------------------------------------------------
Utah -- 0.0%
10,000 AAA Utah State HFA, Single-Family Mortgage, Series G-1, FHA-Insured,
8.100% due 7/1/16 10,175
- -------------------------------------------------------------------------------------------------------------------------------
Virginia -- 1.5%
200,000 AAA Fairfax County, VA Redevelopment & Housing Authority Multi-Family
Housing Revenue, FHA-Insured, Paul Spring, 5.900% due 6/15/17 213,500
1,000,000 BBB Peninsula Ports Authority, VA Coal Terminal Revenue, (Dominion Terminal
Association Project), 7.375% due 6/1/20 1,087,500
500,000 AAA Prince William County, VA IDA Revenue, Series A, GNMA-Collateralized,
6.250% due 12/20/27 559,375
- -------------------------------------------------------------------------------------------------------------------------------
1,860,375
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 61
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================================================
<S> <C> <C> <C>
Washington -- 0.5%
Washington State Public Power Supply System:
$ 250,000 AAA Nuclear Project 1, Series B, FGIC-Insured, 7.125% due 7/1/16 $ 311,875
250,000 AAA Nuclear Project 2, Series C, (Pre-Refunded -- Escrowed with
U.S. government securities to 7/1/01 Call @ 102),
7.625% due 7/1/10(d) 270,625
- -------------------------------------------------------------------------------------------------------------------------------
582,500
- -------------------------------------------------------------------------------------------------------------------------------
Wisconsin -- 1.1%
250,000 NR Jefferson, WI Sewer System Waterworks, (Pre-Refunded -- Escrowed with
U.S. government securities to 7/1/01 Call @ 100), 7.400% due 7/1/16(d) 269,375
1,000,000 AAA Wisconsin State Health & Education Facilities Authority Revenue,
(Marquette University Project), FGIC-Insured, 6.450% due 12/1/19 1,136,250
- -------------------------------------------------------------------------------------------------------------------------------
1,405,625
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $115,921,466**) $123,388,827
===============================================================================================================================
</TABLE>
(a) All ratings are by Standard & Poor's Ratings Service, except that those
which are identified by an asterisk (*) are rated by Moody's Investors
Service, Inc. and those which are identified by a double dagger (++) are
rated by Fitch Investor Services, Inc.
(b) Variable rate obligation payable at par on demand at anytime on no more
than seven days notice.
(c) Security segregated by custodian for open purchase commitments.
(d) Bonds are escrowed with U.S. government securities and are considered by
the Manager to be triple-A rated even if issuer has not applied for new
ratings.
(e) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, generally to qualified institutional buyers.
(f) Income from this issue is considered a preference item for purposes of
calculating the alternative minimum tax.
** Aggregate cost for Federal income tax purposes is substantially the same.
See pages 63 through 65 for bond ratings and certain security
descriptions.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
62 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Bond Ratings (unaudited)
- --------------------------------------------------------------------------------
The definitions of the applicable rating symbols are set forth below:
Standard & Poor's Ratings Service ("Standard & Poor's") -- Ratings from "AA" to
"BB" may be modified by the addition of a plus (+) or minus (-) sign to show
relative standings within the major rating categories.
AAA -- Bonds rated "AAA" have the highest rating assigned by Standard &
Poor's. Capacity to pay interest and repay principal is extremely
strong.
AA -- Bonds rated "AA" have a very strong capacity to pay interest and repay
principal and differ from the highest rated issue only in a small
degree.
A -- Bonds rated "A" have a strong capacity to pay interest and repay
principal although they are somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than bonds
in higher rated categories.
BBB -- Bonds rated "BBB" are regarded as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for bonds in this category than in higher
rated categories.
BB -- Bonds rated "BB" have less near-term vulnerability to default than
other speculative issues. However, they face major ongoing
uncertainties or exposure to adverse business, financial, or economic
conditions which could lead to inadequate capacity to meet timely
interest and principal payments.
Moody's Investors Service, Inc. ("Moody's") -- Numerical modifiers 1, 2 and 3
may be applied to each generic rating from "Aa" to "Ba", where 1 is the highest
and 3 the lowest ranking within its generic category.
Aaa -- Bonds rated "Aaa" are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as
"gilt edge". Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong
position of such issues.
Aa -- Bonds rated "Aa" are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as
high grade bonds. They are rated lower than the best bonds because
margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or
there may be other elements present which make the long-term risks
appear somewhat larger than in Aaa securities.
A -- Bonds rated "A" possess many favorable investment attributes and are
to be considered as upper medium grade obligations. Factors giving
security to principal and interest are considered adequate but
elements may be present which suggest a susceptibility to impairment
some time in the future.
Baa -- Bonds rated "Baa" are considered as medium grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest
payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
- --------------------------------------------------------------------------------
The Concert Investment Series 63
<PAGE>
- --------------------------------------------------------------------------------
Bond Ratings (unaudited) (continued)
- --------------------------------------------------------------------------------
Ba -- Bonds rated "Ba" are judged to have speculative elements; their future
cannot be considered as well-assured. Often the protection of interest
and principal payments may be very moderate, and therefore not well
safeguarded during both good and bad times over the future.
Uncertainty of position characterizes bonds in this class.
Fitch IBCA, Inc. ("Fitch") -- Ratings may be modified by the addition of a plus
(+) or minus (-) sign to show relative standings within the major rating
categories.
A -- Bonds rated "A" are considered to be investment grade and of high
credit quality. The obligor's ability to pay interest and/or dividends
and repay principal is considered to be strong, but may be more
vulnerable to adverse changes in economic conditions and circumstances
than securities with higher ratings.
BBB -- Bonds rated "BBB" are considered to be investment grade and of
satisfactory credit quality. The obligor's ability to pay interest or
dividends and repay principal is considered to be adequate. Adverse
changes in economic conditions and circumstances, however, are more
likely to have adverse impact on these securities and, therefore,
impair timely payment. The likelihood that the ratings of these bonds
will fall below investment grade is higher than for securities with
higher ratings.
NR -- Indicates that the bond is not rated by Standard & Poor's, Moody's or
Fitch.
- --------------------------------------------------------------------------------
Short-Term Security Ratings (unaudited)
- --------------------------------------------------------------------------------
SP-1 -- Standard & Poor's highest rating indicating very strong or strong
capacity to pay principal and interest; those issues determined to
possess overwhelming safety characteristics are denoted with a plus
(+) sign.
A-1 -- Standard & Poor's highest commercial paper and variable rate demand
obligation (VRDO) rating indicating that the degree of safety
regarding timely payment is either overwhelming or very strong; those
issues determined to possess overwhelming safety characteristics are
denoted with a plus (+) sign.
VMIG 1 -- Moody's highest rating for issues having a demand feature -- VRDO.
MIG 1 -- Moody's highest rating for short-term municipal obligations.
P-1 -- Moody's highest rating for commercial paper and for VRDO prior to the
advent of the VMIG 1 rating.
- --------------------------------------------------------------------------------
64 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Security Descriptions (unaudited)
- --------------------------------------------------------------------------------
ABAG -- Association of Bay Area Governments
AIG -- American International Guaranty
AMBAC -- AMBAC Indemnity Corporation
BIG -- Bond Investors Guaranty
CGIC -- Capital Guaranty Insurance Company
CONNIE
LEE -- College Construction Loan Insurance Association
COP -- Certificate of Participation
EDA -- Economic Development Authority
FLAIRS -- Floating Adjustable Interest Rate Securities
FGIC -- Financial Guaranty Insurance Company
FHA -- Federal Housing Administration
FHLMC -- Federal Home Loan Mortgage Corporation
FMHA -- Farmer's Home Administration
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GIC -- Guaranteed Investment Contract
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
IDA -- Industrial Development Authority
IDB -- Industrial Development Board
IDR -- Industrial Development Revenue
ISD -- Independent School District
INFLOS -- Inverse Floaters
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance Corporation
MVRICS -- Municipal Variable Rate Inverse Coupon Security
PCFA -- Pollution Control Financing Authority
PCR -- Pollution Control Revenue
PSFG -- Permanent School Fund Guaranty
RIBS -- Residual Interest Bonds
RITES -- Residual Interest Tax-Exempt Securities
VA -- Veterans Administration
VRDN -- Variable Rate Demand Note
VRWE -- Variable Rate Wednesday Demand
- --------------------------------------------------------------------------------
The Concert Investment Series 65
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Government Growth
Growth Fund Fund Fund
=======================================================================================================================
<S> <C> <C> <C>
ASSETS:
Investments, at cost $ 198,734,506 $ 225,692,506 $3,126,021,454
Repurchase agreements, at cost 15,704,000 2,732,000 104,171,000
Foreign currency, at cost -- -- --
=======================================================================================================================
Investments, at value $ 240,047,460 $ 221,535,861 $4,855,609,087
Repurchase agreements, at value 15,704,000 2,732,000 104,171,000
Foreign currency, at value -- -- --
Cash 1,677,368 -- 484
Collateral for securities loaned (Note 10) 38,294,373 -- 436,078,652
Receivable for securities sold 702,514 1,925,984 27,929,491
Receivable for Fund shares sold 104,591 350,852 1,560,278
Dividends and interest receivable 23,521 2,305,991 6,646,160
Receivable for open forward foreign currency contracts-- -- --
Receivable from manager -- -- --
Deferred organization costs 7,554 -- --
Other assets 3,479 83,359 693,940
- -----------------------------------------------------------------------------------------------------------------------
Total Assets 296,564,860 228,934,047 5,432,689,092
- -----------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable to broker - variation margin 198,450 -- --
Dividends payable -- 1,098,042 --
Distribution fees payable 119,920 24,392 277,539
Management fees payable 137,320 139,232 2,325,741
Payable for open forward foreign
currency contracts -- -- --
Payable for Fund shares purchased -- -- --
Payable for securities loaned (Note 10) 38,294,373 -- 436,078,652
Trustees retirement plan 15,191 -- 1,028,274
Payable to bank -- 50,582 --
Payable for securities purchased -- 1,926,720 20,142,440
Accrued expenses 147,152 457,669 1,814,915
- -----------------------------------------------------------------------------------------------------------------------
Total Liabilities 38,912,406 3,696,637 461,667,561
- -----------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 257,652,454 $ 225,237,410 $4,971,021,531
=======================================================================================================================
NET ASSETS:
Par value of shares of beneficial interest $ 110,501 $ 220,146 $ 2,165,841
Capital paid in excess of par value 197,685,787 260,107,676 3,082,466,922
Undistributed (overdistributed) net
investment income (1,468,177) (1,067,481) 4,244,954
Accumulated net realized gain (loss)
on security transactions 18,984,684 (29,866,286) 152,556,181
Net unrealized appreciation (depreciation) of
investments and foreign currencies 42,339,659 (4,156,645) 1,729,587,633
- -----------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 257,652,454 $ 225,237,410 $4,971,021,531
=======================================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
66 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
April 30, 1999
- --------------------------------------------------------------------------------
Growth and International Mid Cap Municipal
Income Fund Equity Fund Fund Bond Fund
================================================================================
$1,220,574,193 $34,740,643 $5,920,021 $115,921,466
2,033,000 1,432,000 2,305,000 --
-- 82,621 -- --
================================================================================
$1,518,370,993 $51,328,000 $5,985,460 $123,388,827
2,033,000 1,432,000 2,305,000 --
-- 82,803 -- --
449 57,220 406 99,032
136,985,623 -- -- --
9,011,634 569,634 81,875 50,000
582,192 124,788 342,359 1,648,478
1,177,357 72,231 4,931 1,901,135
-- 83 -- --
-- -- 13,917 --
-- 11,149 -- --
181,235 -- -- 20,889
- --------------------------------------------------------------------------------
1,668,342,483 53,677,908 8,733,948 127,108,361
- --------------------------------------------------------------------------------
-- -- 17,150 --
-- -- -- 499,504
195,879 29,739 1,524 9,250
805,680 42,516 -- 61,738
-- 819 -- --
-- -- 5,324 --
136,985,623 -- -- --
291,662 -- -- --
9,995,949 671,157 483,589 1,940,576
571,906 111,337 12,668 194,275
- --------------------------------------------------------------------------------
148,846,699 855,568 520,255 2,705,343
- --------------------------------------------------------------------------------
$1,519,495,784 $52,822,340 $8,213,693 $124,403,018
================================================================================
$ 722,472 $ 22,452 $ 6,982 $ 88,753
1,000,172,549 35,575,967 8,075,659 116,300,301
(130,807) (519,829) 1,830 321,638
220,934,770 1,163,550 11,258 224,965
297,796,800 16,580,200 117,964 7,467,361
- --------------------------------------------------------------------------------
$1,519,495,784 $52,822,340 $8,213,693 $124,403,018
================================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 67
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Government Growth
Growth Fund Fund Fund
=====================================================================================================================
<S> <C> <C> <C> <C>
Shares Outstanding:
Class 1 400,810 18,362,159 192,478,728
-------------------------------------------------------------------------------------------------------------------
Class A 5,511,198 2,069,314 11,910,836
-------------------------------------------------------------------------------------------------------------------
Class B 5,138,138 1,583,146 12,194,543
-------------------------------------------------------------------------------------------------------------------
Net Asset Value:
Class 1 (and redemption price) $ 23.87 $ 10.23 $ 22.97
-------------------------------------------------------------------------------------------------------------------
Class A (and redemption price) $ 23.68 $ 10.22 $ 22.93
-------------------------------------------------------------------------------------------------------------------
Class B * $ 22.89 $ 10.23 $ 22.69
-------------------------------------------------------------------------------------------------------------------
Maximum Public Offering Price Per Share:
Class 1:
(net asset value plus 9.29% of net asset value per share) $ 26.09 -- $ 25.10
-------------------------------------------------------------------------------------------------------------------
(net asset value plus 7.24% of net asset value per share) -- $ 10.97 --
-------------------------------------------------------------------------------------------------------------------
(net asset value plus 4.99% of net asset value per share) -- -- --
-------------------------------------------------------------------------------------------------------------------
Class A:
(net asset value plus 5.26% of net asset value per share) $ 24.93 -- $ 24.14
-------------------------------------------------------------------------------------------------------------------
(net asset value plus 4.71% of net asset value per share) -- $ 10.70 --
=====================================================================================================================
</TABLE>
* Redemption price is NAV of Class B shares reduced by a 5.00% CDSC for
Emerging Growth, Growth, Growth and Income, Mid Cap and International
Equity Funds, and by a 4.50% CDSC for Government and Municipal Bond Funds
if shares are redeemed within one year from purchase (See Note 2).
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
68 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
April 30, 1999
- --------------------------------------------------------------------------------
Growth and International Mid Cap Municipal
Income Fund Equity Fund Fund Bond Fund
================================================================================
55,977,008 108,766 22,076 6,278,425
- --------------------------------------------------------------------------------
7,679,184 1,068,910 360,736 2,042,342
- --------------------------------------------------------------------------------
8,590,980 1,067,534 315,346 554,506
- --------------------------------------------------------------------------------
$ 21.05 $ 24.05 $ 11.77 $ 14.02
- --------------------------------------------------------------------------------
$ 21.04 $ 23.86 $ 11.77 $ 14.02
- --------------------------------------------------------------------------------
$ 20.92 $ 23.14 $ 11.76 $ 14.00
- --------------------------------------------------------------------------------
$ 23.01 $ 26.28 $ 12.86 --
- --------------------------------------------------------------------------------
-- -- -- $ 14.72
- --------------------------------------------------------------------------------
$ 22.15 $ 25.12 $ 12.39 --
- --------------------------------------------------------------------------------
-- -- -- $ 14.68
================================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 69
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Government Growth
Growth Fund Fund Fund
======================================================================================================================
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 251,737 $ 7,019,791 $ 8,478,511
Dividends 410,986 -- 16,155,615
Less: Foreign withholding tax (358) -- (81,275)
- ----------------------------------------------------------------------------------------------------------------------
Total Investment Income 662,365 7,019,791 24,552,851
- ----------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 763,020 697,204 12,952,130
Distribution fees (Note 2) 678,301 95,385 1,421,235
Shareholder and system servicing fees 570,730 308,536 3,496,893
Registration fees 35,717 62,652 137,685
Shareholder communications 18,524 24,932 453,356
Custody 17,648 10,969 87,260
Audit and legal 11,660 17,967 23,436
Trustees' fees 8,485 7,979 276,078
Amortization of deferred organization costs 2,084 -- --
Pricing service fees -- -- --
Other 10,389 18,516 30,915
- ----------------------------------------------------------------------------------------------------------------------
Total Expenses 2,116,558 1,244,140 18,878,988
Less: Management fee waiver (Note 2) -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Net Expenses 2,116,558 1,244,140 18,878,988
- ----------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (1,454,193) 5,775,651 5,673,863
- ----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FOREIGN CURRENCIES
AND FUTURES CONTRACTS (NOTES 4, 6 AND 8):
Realized Gain (Loss) From:
Security transactions (excluding short-term securities) 18,954,636 (2,260,626) 142,904,316
Foreign currency transactions -- -- --
Futures contracts (114,533) (685,034) 28,603,885
- ----------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) 18,840,103 (2,945,660) 171,508,201
- ----------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation
(Depreciation) of Investments, Foreign
Currencies and Futures Contracts:
Beginning of period 7,298,081 1,352,916 800,236,601
End of period 42,339,659 (4,156,645) 1,729,587,633
- ----------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation (Depreciation) 35,041,578 (5,509,561) 929,351,032
- ----------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments, Foreign
Currencies and Futures Contracts 53,881,681 (8,455,221) 1,100,859,233
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations $ 52,427,488 $ (2,679,570) $ 1,106,533,096
======================================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
70 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
For the Six Months Ended April 30, 1999
- --------------------------------------------------------------------------------
Growth and International Mid Cap Municipal
Income Fund Equity Fund Fund Bond Fund
================================================================================
$ 915,190 $ 15,788 $ 5,426 $ 3,320,456
8,488,911 108,108 4,945 --
(23,443) (8,652) -- --
- --------------------------------------------------------------------------------
9,380,658 115,244 10,371 3,320,456
- --------------------------------------------------------------------------------
4,613,468 234,774 3,773 350,533
967,984 135,598 2,252 55,491
928,200 90,734 850 93,860
50,050 53,413 5,000 45,500
173,992 11,437 3,000 28,392
31,850 15,647 500 6,370
16,926 23,850 9,000 24,724
51,870 7,418 900 8,190
-- 2,083 -- --
-- 1,926 -- 11,000
38,038 440 400 10,921
- --------------------------------------------------------------------------------
6,872,378 577,320 25,675 634,981
-- -- (17,134) --
- --------------------------------------------------------------------------------
6,872,378 577,320 8,541 634,981
- --------------------------------------------------------------------------------
2,508,280 (462,076) 1,830 2,685,475
- --------------------------------------------------------------------------------
223,152,529 1,390,097 11,258 260,130
-- (32,927) -- --
-- -- -- --
- --------------------------------------------------------------------------------
223,152,529 1,357,170 11,258 260,130
- --------------------------------------------------------------------------------
282,931,597 7,094,667 -- 8,967,167
297,796,800 16,580,200 117,964 7,467,361
- --------------------------------------------------------------------------------
14,865,203 9,485,533 117,964 (1,499,806)
- --------------------------------------------------------------------------------
238,017,732 10,842,703 129,222 (1,239,676)
- --------------------------------------------------------------------------------
$ 240,526,012 $ 10,380,627 $ 131,052 $ 1,445,799
================================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 71
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Government Growth
Growth Fund Fund Fund
====================================================================================================================
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (1,454,193) $ 5,775,651 $ 5,673,863
Net realized gain (loss) 18,840,103 (2,945,660) 171,508,201
Change in net unrealized appreciation (depreciation) 35,041,578 (5,509,561) 929,351,032
- --------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
From Operations 52,427,488 (2,679,570) 1,106,533,096
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM (NOTE 3):
Net investment income -- (6,822,676) (20,153,502)
Net realized gains (16,075,519) -- (371,663,728)
- --------------------------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (16,075,519) (6,822,676) (391,817,230)
- --------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 13):
Net proceeds from sale of shares 35,481,344 21,217,467 263,490,592
Net asset value of shares issued for
reinvestment of dividends 16,075,519 5,724,633 391,817,230
Cost of shares reacquired (36,719,751) (33,699,687) (417,561,017)
- --------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions 14,837,112 (6,757,587) 237,746,805
- --------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 51,189,081 (16,259,833) 952,462,671
NET ASSETS:
Beginning of period 206,463,373 241,497,243 4,018,558,860
- --------------------------------------------------------------------------------------------------------------------
End of period* $ 257,652,454 $ 225,237,410 $ 4,971,021,531
====================================================================================================================
* Includes undistributed (overdistributed)
net investment income of: $ (1,468,177) $ (1,067,481) $ 4,244,954
====================================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
72 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
For the Six Months Ended April 30, 1999
- --------------------------------------------------------------------------------
Growth and International Mid Cap Municipal
Income Fund Equity Fund Fund Bond Fund
================================================================================
$ 2,508,280 $ (462,076) $ 1,830 $ 2,685,475
223,152,529 1,357,170 11,258 260,130
14,865,203 9,485,533 117,964 (1,499,806)
- --------------------------------------------------------------------------------
240,526,012 10,380,627 131,052 1,445,799
- --------------------------------------------------------------------------------
(2,580,788) -- -- (2,775,246)
(55,687,525) -- -- (1,882,614)
- --------------------------------------------------------------------------------
(58,268,313) -- -- (4,657,860)
- --------------------------------------------------------------------------------
98,699,503 9,476,341 8,144,746 23,445,609
58,268,314 -- -- 4,158,356
(159,339,310) (6,333,147) (62,105) (15,422,072)
- --------------------------------------------------------------------------------
(2,371,493) 3,143,194 8,082,641 12,181,893
- --------------------------------------------------------------------------------
179,886,206 13,523,821 8,213,693 8,969,832
1,339,609,578 39,298,519 -- 115,433,186
- --------------------------------------------------------------------------------
$1,519,495,784 $52,822,340 $8,213,693 $124,403,018
================================================================================
$ (130,807) $ (519,829) $ 1,830 $ 321,638
================================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 73
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging
Growth Government
Fund Fund
========================================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (2,334,175) $ 15,249,993
Net realized gain 16,246,245 10,926,950
Increase (decrease) in net unrealized appreciation (32,876,137) (8,550,555)
- --------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations (18,964,067) 17,626,388
- --------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTE 3):
Net investment income -- (15,690,078)
Net realized gains (1,854,478) --
- --------------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (1,854,478) (15,690,078)
- --------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 13):
Net proceeds from sale of shares 83,968,305 25,302,746
Net asset value of shares issued for reinvestment of dividends 1,851,092 15,293,891
Cost of shares reacquired (44,936,116) (67,597,908)
- --------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions 40,883,281 (27,001,271)
- --------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 20,064,736 (25,064,961)
NET ASSETS:
Beginning of year 186,398,637 266,562,204
- --------------------------------------------------------------------------------------------------------
End of year* $ 206,463,373 $ 241,497,243
========================================================================================================
* Includes undistributed (overdistributed)
net investment income of: $ (13,984) $ (20,456)
========================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
74 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
For the Year Ended October 31, 1998
- --------------------------------------------------------------------------------
Growth International Municipal
Growth and Income Equity Bond
Fund Fund Fund Fund
================================================================================
$ 24,026,314 $ 10,575,003 $ (684,724) $ 5,369,766
363,421,052 53,525,051 660,236 1,959,166
83,970,624 72,944,136 716,646 601,222
- --------------------------------------------------------------------------------
471,417,990 137,044,190 692,158 7,930,154
- --------------------------------------------------------------------------------
(29,490,817) (11,624,713) -- (5,264,677)
(612,889,898) (206,848,408) -- (1,048,986)
- --------------------------------------------------------------------------------
(642,380,715) (218,473,121) -- (6,313,663)
- --------------------------------------------------------------------------------
361,252,628 166,386,112 13,985,910 24,927,089
638,155,236 214,966,369 -- 6,460,752
(591,755,393) (236,807,411) (7,513,975) (33,273,984)
- --------------------------------------------------------------------------------
407,652,471 144,545,070 6,471,935 (1,886,143)
- --------------------------------------------------------------------------------
236,689,746 63,116,139 7,164,093 (269,652)
3,781,869,114 1,276,493,439 32,134,426 115,702,838
- --------------------------------------------------------------------------------
$4,018,558,860 $1,339,609,578 $39,298,519 $115,433,186
================================================================================
$ 18,724,593 $ (58,299) $ (24,826) $ 411,409
================================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 75
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The Emerging Growth, Government, Growth, Growth and Income, International
Equity, Mid Cap and Municipal Bond Funds ("Funds") are separate investment funds
of the Concert Investment Series ("Series"). The Series, a Massachusetts
business trust, is registered under the Investment Company Act of 1940, as
amended, as a diversified open-end management investment company.
The significant accounting policies consistently followed by the Series are: (a)
security transactions are accounted for on trade date; (b) securities traded on
national securities markets are valued at the closing prices on such markets or,
if there were no sales during the day, at the current quoted bid price;
securities primarily traded on foreign exchanges are generally valued at the
preceding closing values of such securities on their respective exchanges,
except that when a significant occurrence, subsequent to the time a value was so
established, is likely to have significantly changed the value then, the fair
value of those securities will be determined by consideration of other factors
by or under the direction of the Board of Trustees or its delegates;
over-the-counter securities are valued on the basis of the bid price at the
close of business on each day; U.S. government and agency obligations are valued
at the average between bid and ask prices in the over-the-counter market; (c)
securities maturing within 60 days are valued at cost plus accreted discount or
minus amortized premium, which approximates value; for the Municipal Bond Fund
securities are valued at the mean between the bid and ask prices provided by an
independent pricing service which are based on transactions in municipal
obligations, quotations from municipal bond dealers, market transactions in
comparable securities and various relationships between securities; (d)
securities for which market quotations are not available will be valued in good
faith at fair value by or under the direction of the Board of Trustees; (e)
interest income is recorded on the accrual basis; for the Municipal Bond Fund
interest income, adjusted for amortization of premium and accretion of original
issue discount, is recorded on the accrual basis; market discount is recognized
upon disposition of the security; (f) dividend income is recorded on the
ex-dividend date; foreign dividend income is recorded on the ex-dividend date or
as soon as practical after the Funds determine the existence of a dividend
declaration after exercising reasonable due diligence; (g) gains or losses on
the sale of securities are calculated by using the specific identification
method; (h) dividends and distributions to shareholders are recorded by the
Funds on the ex-dividend date; (i) the accounting records of the Funds are
maintained in U.S. dollars. All assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the rate of exchange of
such currencies against U.S. dollars on the date of valuation. Purchases and
sales of securities, and income and expenses are translated at the rate of
exchange quoted on the respective date that such transactions are recorded.
Differences between income and expense amounts recorded and collected or paid
are adjusted when reported by the custodian bank; (j) realized gain and loss on
foreign currency includes the net realized amount from the sale of currency and
the amount realized between trade date and settlement date on security
transactions; (k) the character of income and gains to be distributed are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. At October 31, 1998, reclassifications
were made to the capital accounts of the Emerging Growth Fund, Government Fund,
Growth Fund, and International Equity Fund to reflect permanent book/tax
differences and income and gains available for distributions under income tax
regulations. Accordingly, a portion of overdistributed net investment income
amounting to $2,322,695, $141,649, and $684,156 was reclassed to paid in capital
for Emerging Growth Fund, Government Fund, and International Equity Fund,
respectively. In addition, a portion of accumulated net realized gain in the
amount of $11,491 was reclassed to increase paid in capital for the Growth Fund.
Net investment income,
- --------------------------------------------------------------------------------
76 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
net realized gains, and net assets were not affected by this adjustment; (l)
each Fund intends to comply with the requirements of the Internal Revenue Code
of 1986, as amended, pertaining to regulated investment companies and to make
distributions of taxable income sufficient to relieve it from substantially all
federal income and excise tax; and (m) estimates and assumptions are required to
be made regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
In addition, for the Emerging Growth and International Equity Funds,
organization costs have been deferred and are currently being amortized on a
straight-line basis over a five-year period.
Also, certain Funds may enter into forward exchange contracts in order to hedge
against foreign currency risk. These contracts are marked-to-market daily, by
recognizing the difference between the contract exchange rate and the current
market rate as an unrealized gain or loss. Realized gains or losses are
recognized when contracts are settled.
2. Investment Management Agreement and Other Transactions
SSBC Fund Management Inc. ("SSBC"), formerly known as Mutual Management Corp., a
subsidiary of Salomon Smith Barney Holdings Inc. ("SSBH"), acts as the
investment advisor to the Series. Under each respective investment management
agreement, the Funds pay an investment advisory fee calculated at an annual rate
of their respective average daily net assets as follows:
<TABLE>
<CAPTION>
Emerging Growth, Growth
and Growth and Income Government Municipal Bond
- -------------------------------- -------------------------------- -------------------------------
Average Daily Annual Average Daily Annual Average Daily Annual
Net Assets Rate Net Assets Rate Net Assets Rate
==============================================================================================================
<S> <C> <C> <C> <C> <C>
First $1 billion 0.65% First $1 billion 0.60% First $1 billion 0.60%
- --------------------------------------------------------------------------------------------------------------
Next $1 billion 0.60 Next $1 billion 0.55 Next $1 billion 0.55
- --------------------------------------------------------------------------------------------------------------
Next $1 billion 0.55 Next $1 billion 0.50 Next $1 billion 0.50
- --------------------------------------------------------------------------------------------------------------
Next $1 billion 0.50 Next $1 billion 0.45 Over $3 billion 0.45
- --------------------------------------------------------------------------------------------------------------
Over $4 billion 0.45 Next $1 billion 0.40
- --------------------------------------------------------------------------------------------------------------
Over $5 billion 0.35
==============================================================================================================
</TABLE>
The International Equity Fund pays SSBC an investment management fee calculated
at an annual rate of 1.00% of its average daily net assets and the Mid Cap Fund
pays SSBC an investment management fee calculated at an annual rate of 0.75% of
its average daily net assets. These fees are calculated daily and paid monthly.
For the six months ended April 30, 1999, SSBC has waived all of its management
fee for the Mid Cap Fund.
CFBDS, Inc. ("CFBDS") acts as the Funds' distributor. CFBDS received sales
charges of approximately $6,592,708 and $4,085,200, on sales of the Funds' Class
1 and A shares for the six months ended April 30, 1999. For the six months ended
April 30, 1999, Salomon Smith Barney, Inc. and its affiliates received brokerage
commissions of approximately $78,240.
There is a contingent deferred sales charge ("CDSC") of 5.00% on Class B shares
for the Emerging Growth, Growth, International Equity, Mid Cap and Growth and
Income Funds, which applies if redemption occurs within one year of purchase and
declines by 1.00% per year until no CDSC is incurred. There is a 4.50% CDSC on
Class B shares for the Municipal Bond and Government Funds, which applies if
redemption occurs within one year from initial purchase. This CDSC declines by
0.50% the first year after purchase and thereafter by 1.00% per year until no
CDSC is incurred.
- --------------------------------------------------------------------------------
The Concert Investment Series 77
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
For the six months ended April 30, 1999, CDSCs paid to CFBDS for Class B shares
were approximately:
<TABLE>
<CAPTION>
Emerging Growth International Municipal
Growth Government Growth and Income Equity Mid Cap Bond
==============================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
CDSCs $270,359 $47,020 $364,723 $317,254 $39,212 $29 $18,412
==============================================================================================================
</TABLE>
Pursuant to two Distribution Plans, the Funds pay a service fee with respect to
its Class A and B shares calculated at an annual rate of 0.25% of the average
daily net assets for each respective class. The Funds also pay a distribution
fee with respect to Class B shares calculated at the annual rate of 0.75% of the
average daily net assets of the class. For the six months ended April 30, 1999,
total Distribution Plan fees incurred were:
Distribution Plan Fees Class A Class B
================================================================================
Emerging Growth Fund $ 151,546 $ 526,755
- --------------------------------------------------------------------------------
Government Fund 22,481 72,904
- --------------------------------------------------------------------------------
Growth Fund 286,332 1,134,903
- --------------------------------------------------------------------------------
Growth and Income Fund 180,434 787,550
- --------------------------------------------------------------------------------
International Equity Fund 29,014 106,584
- --------------------------------------------------------------------------------
Mid Cap Fund 889 1,363
- --------------------------------------------------------------------------------
Municipal Bond Fund 24,232 31,259
================================================================================
All officers and one Trustee of the Series are employees of SSB.
The Trustees of the Series instituted a Retirement Plan ("Plan"), effective
April 1, 1996. The Plan is not funded, and obligations under the Plan will be
paid solely out of the Series' assets. The Series will not reserve or set aside
funds for the payment of its obligations under the Plan by any form of trust or
escrow. For the current Trustees not affiliated with the Adviser, the annual
retirement benefit payable per year for a ten-year period is based upon the
highest total annual compensation received in any of the three calendar years
preceding retirement. Trustees with more than five but less than ten years of
service at retirement will receive a proportionally reduced benefit. Under the
Plan, for those Trustees retiring with the effectiveness of the Plan, the annual
retirement benefit payable per year for a ten-year period is equal to 75% of the
total compensation received from the Trust during the 1995 calendar year.
3. Exempt-Interest Dividends
The Municipal Bond Fund intends to satisfy conditions that will enable interest
from municipal securities, which is exempt from regular Federal income tax and
from designated state income taxes, to retain such tax-exempt status when
distributed to the shareholders of the Municipal Bond Fund.
- --------------------------------------------------------------------------------
78 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
4. Investments
During the six months ended April 30, 1999 the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
Purchases Sales
================================================================================
Emerging Growth Fund $135,151,127 $155,512,944
- --------------------------------------------------------------------------------
Government Fund 268,914,768 279,670,649
- --------------------------------------------------------------------------------
Growth Fund 998,339,466 918,964,890
- --------------------------------------------------------------------------------
Growth and Income Fund 694,719,270 751,430,158
- --------------------------------------------------------------------------------
International Equity Fund 12,819,635 11,340,787
- --------------------------------------------------------------------------------
Mid Cap Fund 6,818,498 909,734
- --------------------------------------------------------------------------------
Municipal Bond Fund 21,214,115 9,790,610
================================================================================
At April 30, 1999, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
<TABLE>
<CAPTION>
Net Unrealized
Appreciation
Appreciation Depreciation (Depreciation)
======================================================================================
<S> <C> <C> <C>
Emerging Growth Fund $ 58,389,284 $ (17,076,330) $ 41,312,954
- --------------------------------------------------------------------------------------
Government Fund 452,946 (4,609,591) (4,156,645)
- --------------------------------------------------------------------------------------
Growth Fund 1,814,587,288 (84,999,655) 1,729,587,633
- --------------------------------------------------------------------------------------
Growth and Income Fund 337,249,590 (39,452,790) 297,796,800
- --------------------------------------------------------------------------------------
International Equity Fund 17,589,874 (1,002,517) 16,587,357
- --------------------------------------------------------------------------------------
Mid Cap Fund 285,786 (220,347) 65,439
- --------------------------------------------------------------------------------------
Municipal Bond Fund 7,619,509 (152,148) 7,467,361
======================================================================================
</TABLE>
5. Repurchase Agreements
The Funds purchase (and its custodian takes possession of) U.S. government
securities from banks and securities dealers subject to agreements to resell the
securities to the sellers at a future date (generally, the next business day),
at an agreed-upon higher repurchase price. The Funds require continual
maintenance of the market value of the collateral in amounts at least equal to
the repurchase price.
6. Futures Contracts
The Funds may from time to time enter into futures contracts.
Initial margin deposits made upon entering into futures contracts are recognized
as assets. The initial margin is segregated by the custodian as is noted in the
schedule of investments. During the period the futures contract is open, changes
in the value of the contract are recognized as unrealized gains or losses by
"marking to market" on a daily basis to reflect the market value of the contract
at the end of each day's trading. Variation margin payments are made or received
and recognized as assets due from or liabilities due to broker, depending upon
whether unrealized gains or losses are incurred. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
proceeds from (and cost of) the closing transaction and the Fund's basis in the
contract. The Fund enters into such contracts to hedge a portion of its
portfolio. The Fund bears the market risk that arises from changes in the value
of the financial instruments and securities indices (futures contracts) and the
credit risk should a counterparty fail to perform under such contracts.
- --------------------------------------------------------------------------------
The Concert Investment Series 79
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
At April 30, 1999, the Emerging Growth and Mid Cap Funds had the following open
futures contracts:
<TABLE>
<CAPTION>
Emerging Growth Fund # of Basis Market Unrealized
Purchased Contracts Contracts Expiration Value Value Gain
=========================================================================================================
<S> <C> <C> <C> <C> <C>
Mid Cap 400 Futures 81 6/99 $15,015,345 $16,042,050 $1,026,705
=========================================================================================================
<CAPTION>
Mid Cap Fund # of Basis Market Unrealized
Purchased Contracts Contracts Expiration Value Value Gain
=========================================================================================================
<S> <C> <C> <C> <C> <C>
S&P 400 Index 7 9/99 $ 1,333,825 $ 1,386,350 $ 52,525
=========================================================================================================
</TABLE>
7. Option Contracts
The Funds may from time to time enter into option contracts.
Upon the purchase of a put option or a call option by the Fund, the premium paid
is recorded as an investment, the value of which is marked to market daily. When
a purchased option expires, the Fund will realize a loss in the amount of the
cost of the option. When the Fund enters into a closing sales transaction, the
Fund will realize a gain or loss depending on whether the sales proceeds from
the closing sales transaction are greater or less than the cost of the option.
When the Fund exercises a put option, it will realize a gain or loss from the
sale of the underlying security and the proceeds from such sale will be
decreased by the premium originally paid. When the Fund exercises a call option,
the cost of the security which the Fund purchases upon exercise will be
increased by the premium originally paid.
As of April 30, 1999, the Funds held no purchased call or put options.
8. Forward Foreign Currency Contracts
The International Equity Fund has the ability to enter into forward foreign
currency contracts.
At April 30, 1999, the Fund had open forward foreign currency contracts as
described below. The Fund bears the market risk that arises from changes in
foreign currency exchange rates. The unrealized loss on the contracts reflected
in the accompanying financial statements were as follows:
<TABLE>
<CAPTION>
International Equity Fund Local Market Settlement Unrealized
Foreign Currency Currency Value Date Gain (Loss)
=================================================================================================
<S> <C> <C> <C> <C>
To Sell:
Greek Drachma (175,105,359) $(569,429) 5/3/99 $(720)
- -------------------------------------------------------------------------------------------------
To Buy:
Hong Kong Dollar 2,005,546 258,763 5/3/99 (7)
Japanese Yen 26,011,920 218,129 5/7/99 (92)
Singapore Dollar 227,066 134,124 5/3/99 83
- -------------------------------------------------------------------------------------------------
(16)
- -------------------------------------------------------------------------------------------------
Total Unrealized Loss on Forward
Foreign Currency Contracts $(736)
=================================================================================================
</TABLE>
9. Foreign Securities
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in U.S.
companies and the U.S. government. These risks include revaluation of currencies
and future adverse political and economic developments. Moreover, securities of
many foreign companies and foreign governments and their markets may be less
liquid and their prices more volatile than those of securities of comparable
U.S. companies and the U.S. government.
- --------------------------------------------------------------------------------
80 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
10. Securities Lending
The Funds have an agreement with their custodian whereby the custodian may lend
securities owned by the Funds to brokers, dealers and other financial
organizations. Fees earned by the Funds on securities lending are recorded in
interest income. Loans of securities by the Funds are collateralized by cash,
U.S. government securities or high quality money market instruments that are
maintained at all times in an amount at least equal to the current market value
of the loaned securities, plus a margin which may vary depending on the type of
securities loaned. The custodian establishes and maintains the collateral in a
segregated account.
At April 30, 1999, the Emerging Growth, Growth and Growth and Income Funds
loaned stocks having a value of approximately $37,618,320, $424,074,992 and
$132,257,092, respectively. These Funds hold the following collateral for loaned
securities:
Emerging Growth Fund
Security Description Value
================================================================================
Time Deposits:
Bank Brussels Lambert, 4.968% due 5/3/99 $ 11,131,073
Banque of Paribas, 4.968% due 5/3/99 7,936,043
Caissie Des Depot Et Consig., 4.937% due 5/3/99 8,760,566
Caissie Des Depot (CDC), 4.968% due 5/3/99 7,936,043
Chase Manhattan Bank, 4.937% due 5/3/99 2,530,648
- --------------------------------------------------------------------------------
Total $ 38,294,373
================================================================================
Growth Fund
Security Description Value
================================================================================
Time Deposits:
Bank Brussels Lambert, 4.968% due 5/3/99 $110,496,069
Bank of Montreal, 5.000% due 5/3/99 377,481
Banque of Paribas, 4.968% due 5/3/99 78,779,605
Caissie Des Depot Et Consig., 4.937% due 5/3/99 86,964,499
Caissie Des Depot (CDC), 4.968% due 5/3/99 78,779,605
Chase Manhattan Bank, 4.937% due 5/3/99 25,121,274
Commercial Paper:
Corporate Asset Funding Co., 4.906% due 6/3/99 1,565,413
Morgan Stanley, 5.002% due 9/1/99 46,250,838
Svenska Handelsbanken, 4.940% due 10/25/99 7,743,868
- --------------------------------------------------------------------------------
Total $436,078,652
================================================================================
Growth and Income Fund
Security Description Value
================================================================================
Time Deposits:
Bank Brussels Lambert, 4.968% due 5/3/99 $ 38,219,632
Bank of Montreal, 5.000% due 5/3/99 20,225
Banque of Paribas, 4.968% due 5/3/99 27,249,182
Caissie Des Depot Et Consig., 4.937% due 5/3/99 30,080,266
Caissie Des Depot (CDC), 4.968% due 5/3/99 27,249,182
Chase Manhattan Bank, 4.937% due 5/3/99 8,689,231
Commercial Paper:
Morgan Stanley, 5.002% due 9/1/99 5,477,905
- --------------------------------------------------------------------------------
Total $136,985,623
================================================================================
- --------------------------------------------------------------------------------
The Concert Investment Series 81
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
Securities lending fees earned by the Funds for the six months ended April 30,
1999 were as follows:
Portfolio Fees
================================================================================
Emerging Growth Fund $ 69,046
- --------------------------------------------------------------------------------
Growth Fund 172,397
- --------------------------------------------------------------------------------
Growth and Income Fund 82,349
================================================================================
11. Securities Traded on a To-Be-Announced Basis
The Funds may trade securities on a "to-be-announced" ("TBA") basis.
In a TBA transaction, the Fund commits to purchasing or selling securities for
which specific information is not yet known at the time of the trade,
particularly the face amount and maturity date in GNMA transactions. Securities
purchased on a TBA basis are not settled until they are delivered to the Fund
normally 15 to 45 days later. These transactions are subject to market
fluctuations and their current value is determined in the same manner as for
other securities.
As of April 30, 1999, the Funds did not hold any TBA securities.
12. Capital Loss Carryforward
At October 31, 1998, the Government and International Equity Funds had, for
Federal income tax purposes, approximately $26,921,000 and $225,000,
respectively, of capital loss carryforwards available to offset future realized
gains. To the extent that these carryforward losses can be used to offset net
realized capital gains, such gains, if any, will not be distributed. Expirations
occurs on October 31, of the years below:
<TABLE>
<CAPTION>
Total 2002 2003 2004 2005
============================================================================================================
<S> <C> <C> <C> <C> <C>
Government Fund $26,921,000 $23,010,000 $143,000 $3,061,000 $707,000
- ------------------------------------------------------------------------------------------------------------
International Equity Fund 225,000 -- -- -- 225,000
============================================================================================================
</TABLE>
13. Shares of Beneficial Interest
The Funds have three classes of beneficial interest, Classes 1, A and B each
with a par value of $0.01 per share. There are an unlimited number of shares
authorized.
For the six months ended April 30, 1999, total paid-in capital amounted to the
following for each Fund and class:
Class 1 Class A Class B
================================================================================
Emerging Growth Fund $ 8,069,712 $ 97,039,120 $ 92,687,456
- --------------------------------------------------------------------------------
Government Fund 222,212,218 21,551,228 16,564,376
- --------------------------------------------------------------------------------
Growth Fund 2,635,250,054 225,401,895 223,980,814
- --------------------------------------------------------------------------------
Growth and Income Fund 709,084,718 138,996,455 152,813,848
- --------------------------------------------------------------------------------
International Equity Fund 1,908,786 16,183,348 17,506,285
- --------------------------------------------------------------------------------
Mid Cap Fund 257,183 4,150,525 3,674,933
- --------------------------------------------------------------------------------
Municipal Bond Fund 79,822,408 28,751,340 7,815,306
================================================================================
- --------------------------------------------------------------------------------
82 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Six Months Ended April 30, 1999 Year Ended October 31, 1998
------------------------------- ---------------------------
Emerging Growth Fund Shares Amount Shares Amount
=====================================================================================================
<S> <C> <C> <C> <C>
Class 1
Shares sold 53,712 $ 1,187,619 150,284 $ 3,381,423
Shares issued on reinvestment 24,496 550,198 2,928 60,973
Shares reacquired (36,757) (751,193) (69,885) (1,565,901)
- -----------------------------------------------------------------------------------------------------
Net Increase 41,451 $ 986,624 83,327 $ 1,876,495
=====================================================================================================
Class A
Shares sold 776,187 $ 17,048,480 1,902,205 $ 42,361,807
Shares issued on reinvestment 370,018 8,251,403 47,590 987,487
Shares reacquired (983,982) (21,676,403) (1,156,107) (25,816,588)
- -----------------------------------------------------------------------------------------------------
Net Increase 162,223 $ 3,623,480 793,688 $ 17,532,706
=====================================================================================================
Class B
Shares sold 808,472 $ 17,245,245 1,747,097 $ 38,225,075
Shares issued on reinvestment 336,600 7,273,918 41,763 802,632
Shares reacquired (670,411) (14,292,155) (810,261) (17,553,627)
- -----------------------------------------------------------------------------------------------------
Net Increase 474,661 $ 10,227,008 978,599 $ 21,474,080
=====================================================================================================
Government Fund
=====================================================================================================
Class 1
Shares sold 739,097 $ 7,710,082 1,105,624 $ 10,528,908
Shares issued on reinvestment 480,042 5,012,797 1,286,759 13,675,731
Shares reacquired (2,559,583) (26,732,751) (5,430,883) (56,558,591)
- -----------------------------------------------------------------------------------------------------
Net Decrease (1,340,444) $(14,009,872) (3,038,500) $(32,353,952)
=====================================================================================================
Class A
Shares sold 833,460 $ 8,676,572 901,331 $ 9,582,888
Shares issued on reinvestment 40,051 417,923 86,459 919,109
Shares reacquired (412,540) (4,309,690) (658,405) (7,004,412)
- -----------------------------------------------------------------------------------------------------
Net Increase 460,971 $ 4,784,805 329,385 $ 3,497,585
=====================================================================================================
Class B
Shares sold 465,480 $ 4,830,813 501,510 $ 5,190,950
Shares issued on reinvestment 28,158 293,913 65,763 699,051
Shares reacquired (254,927) (2,657,246) (392,534) (4,034,905)
- -----------------------------------------------------------------------------------------------------
Net Increase 238,711 $ 2,467,480 174,739 $ 1,855,096
=====================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
The Concert Investment Series 83
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended April 30, 1999 Year Ended October 31, 1998
------------------------------- ---------------------------
Growth Fund Shares Amount Shares Amount
=========================================================================================================
<S> <C> <C> <C> <C>
Class 1
Shares sold 5,996,864 $ 130,883,579 10,240,715 $ 203,692,707
Shares issued on reinvestment 16,683,567 356,027,327 33,842,054 597,650,203
Shares reacquired (16,869,775) (369,574,542) (26,781,677) (533,611,502)
- ---------------------------------------------------------------------------------------------------------
Net Increase 5,810,656 $ 117,336,364 17,301,092 $ 267,731,408
=========================================================================================================
Class A
Shares sold 3,073,357 $ 67,613,188 4,476,613 $ 88,986,499
Shares issued on reinvestment 852,135 18,167,521 1,085,537 19,159,725
Shares reacquired (1,217,074) (26,726,776) (1,552,856) (30,826,021)
- ---------------------------------------------------------------------------------------------------------
Net Increase 2,708,418 $ 59,053,933 4,009,294 $ 77,320,203
=========================================================================================================
Class B
Shares sold 2,962,118 $ 64,993,825 3,470,083 $ 68,573,422
Shares issued on reinvestment 833,210 17,622,382 1,211,425 21,345,308
Shares reacquired (983,641) (21,259,699) (1,381,729) (27,317,870)
- ---------------------------------------------------------------------------------------------------------
Net Increase 2,811,687 $ 61,356,508 3,299,779 $ 62,600,860
=========================================================================================================
Growth and Income Fund
=========================================================================================================
Class 1
Shares sold 1,546,565 $ 31,148,550 2,929,819 $ 55,100,017
Shares issued on reinvestment 2,373,523 46,903,775 10,752,036 183,848,216
Shares reacquired (6,144,144) (123,785,196) (10,065,660) (189,054,918)
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (2,224,056) $ (45,732,871) 3,616,195 $ 49,893,315
=========================================================================================================
Class A
Shares sold 1,659,490 $ 33,497,283 3,128,961 $ 58,915,223
Shares issued on reinvestment 278,289 5,496,433 850,762 14,535,892
Shares reacquired (973,810) (19,644,624) (1,236,598) (23,150,922)
- ---------------------------------------------------------------------------------------------------------
Net Increase 963,969 $ 19,349,092 2,743,125 $ 50,300,193
=========================================================================================================
Class B
Shares sold 1,692,233 $ 34,053,670 2,792,516 $ 52,370,872
Shares issued on reinvestment 298,327 5,868,106 974,244 16,582,261
Shares reacquired (794,496) (15,909,490) (1,325,667) (24,601,571)
- ---------------------------------------------------------------------------------------------------------
Net Increase 1,196,064 $ 24,012,286 2,441,093 $ 44,351,562
=========================================================================================================
International Equity Fund
=========================================================================================================
Class 1
Shares sold 28,351 $ 631,379 39,075 $ 803,180
Shares issued on reinvestment -- -- -- --
Shares reacquired (27,710) (623,620) (21,495) (442,410)
- ---------------------------------------------------------------------------------------------------------
Net Increase 641 $ 7,759 17,580 $ 360,770
=========================================================================================================
Class A
Shares sold 176,566 $ 3,946,266 322,280 $ 6,599,233
Shares issued on reinvestment -- -- -- --
Shares reacquired (146,049) (3,298,506) (197,676) (3,957,003)
- ---------------------------------------------------------------------------------------------------------
Net Increase 30,517 $ 647,760 124,604 $ 2,642,230
=========================================================================================================
Class B
Shares sold 226,064 $ 4,898,696 331,033 $ 6,583,497
Shares issued on reinvestment -- -- -- --
Shares reacquired (111,560) (2,411,021) (159,560) (3,114,562)
- ---------------------------------------------------------------------------------------------------------
Net Increase 114,504 $ 2,487,675 171,473 $ 3,468,935
=========================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
84 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended April 30, 1999 Year Ended October 31, 1998
------------------------------- ---------------------------
Mid Cap Fund Shares Amount Shares Amount
=====================================================================================================
<S> <C> <C> <C> <C>
Class 1+
Shares sold 22,798 $ 265,513 -- --
Shares issued on reinvestment -- -- -- --
Shares reacquired (722) (8,330) -- --
- -----------------------------------------------------------------------------------------------------
Net Increase 22,076 $ 257,183 -- --
=====================================================================================================
Class A++
Shares sold 362,038 $ 4,165,654 -- --
Shares issued on reinvestment -- -- -- --
Shares reacquired (1,302) (15,129) -- --
- -----------------------------------------------------------------------------------------------------
Net Increase 360,736 $ 4,150,525 -- --
=====================================================================================================
Class B+
Shares sold 318,699 $ 3,713,579 -- --
Shares issued on reinvestment -- -- --
Shares reacquired (3,353) (38,646) -- --
- -----------------------------------------------------------------------------------------------------
Net Increase 315,346 $ 3,674,933 -- --
=====================================================================================================
Municipal Bond Fund
=====================================================================================================
Class 1
Shares sold 247,029 $ 3,504,780 571,369 $ 7,925,600
Shares issued on reinvestment 234,285 3,320,278 394,990 5,642,150
Shares reacquired (704,675) (10,001,151) (1,792,999) (25,390,446)
- -----------------------------------------------------------------------------------------------------
Net Decrease (223,361) $ (3,176,093) (826,640) $(11,822,696)
=====================================================================================================
Class A
Shares sold 1,203,789 $ 17,024,479 924,268 $ 13,208,421
Shares issued on reinvestment 45,219 640,633 44,855 640,998
Shares reacquired (329,143) (4,673,518) (462,474) (6,609,984)
- -----------------------------------------------------------------------------------------------------
Net Increase 919,865 $ 12,991,594 506,649 $ 7,239,435
=====================================================================================================
Class B
Shares sold 206,169 $ 2,916,350 265,736 $ 3,793,068
Shares issued on reinvestment 13,960 197,445 12,440 177,604
Shares reacquired (52,851) (747,403) (89,435) (1,273,554)
- -----------------------------------------------------------------------------------------------------
Net Increase 167,278 $ 2,366,392 188,741 $ 2,697,118
=====================================================================================================
</TABLE>
+ For the period from March 16, 1999 (commencement of operations) to April
30, 1999.
++ For the period from March 15, 1999 (commencement of operations) to April
30, 1999.
- --------------------------------------------------------------------------------
The Concert Investment Series 85
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
---------------------------------------------------------------
Emerging Growth Fund 1999(1)(2) 1998 1997 1996(3)
==============================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 20.28 $ 22.15 $ 18.59 $ 17.89
- --------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.07) (0.12) (0.08) (0.02)
Net realized and unrealized gain (loss) 5.19 (1.54) 3.64 0.72
- --------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 5.12 (1.66) 3.56 0.70
- --------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- --
Net realized gains (1.53) (0.21) -- --
- --------------------------------------------------------------------------------------------------------------
Total Distributions (1.53) (0.21) -- --
- --------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 23.87 $ 20.28 $ 22.15 $ 18.59
- --------------------------------------------------------------------------------------------------------------
Total Return 25.73%++ (7.52)% 19.15% 3.91%++
- --------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 10 $ 7 $ 6 $ 1
- --------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.23%+ 1.26% 1.39% 1.74%+
Net investment loss (0.66)+ (0.60) (0.63) (1.09)+
- --------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 59% 80% 100% 80%
==============================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average share
method.
(3) For the period from August 8, 1996 (inception date) to October 31, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
86 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
---------------------------------------------------------------------------------
Emerging Growth Fund 1999(1)(2) 1998 1997 1996 1995(2)(3)
================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 20.15 $ 22.08 $ 18.57 $ 15.12 $ 11.81
- --------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.10) (0.17) (0.15) (0.18) (0.24)
Net realized and unrealized gain (loss) 5.16 (1.55) 3.66 3.63 3.55
- --------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 5.06 (1.72) 3.51 3.45 3.31
- --------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- --
Net realized gains (1.53) (0.21) -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.53) (0.21) -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 23.68 $ 20.15 $ 22.08 $ 18.57 $ 15.12
- --------------------------------------------------------------------------------------------------------------------------------
Total Return 25.59%++ (7.81)% 18.90% 22.82% 28.11%++
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 130 $ 108 $ 101 $ 52 $ 16
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(4) 1.48%+ 1.43% 1.69% 2.21% 2.75%+
Net investment loss(4) (0.91)+ (0.80) (0.92) (1.52) (1.65)+
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 59% 80% 100% 80% 83%
================================================================================================================================
<CAPTION>
Class B Shares
---------------------------------------------------------------------------------
Emerging Growth Fund 1999(1)(2) 1998 1997 1996 1995(2)(3)
================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 19.60 $ 21.63 $ 18.34 $ 15.04 $ 11.81
- --------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.18) (0.30) (0.27) (0.27) (0.35)
Net realized and unrealized gain (loss) 5.00 (1.52) 3.56 3.57 3.58
- --------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 4.82 (1.82) 3.29 3.30 3.23
- --------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- --
Net realized gains (1.53) (0.21) -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.53) (0.21) -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 22.89 $ 19.60 $ 21.63 $ 18.34 $ 15.04
- --------------------------------------------------------------------------------------------------------------------------------
Total Return 25.07%++ (8.45)% 17.94% 21.94% 27.43%++
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 118 $ 91 $ 80 $ 39 $ 11
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(5) 2.23%+ 2.18% 2.44% 2.96% 3.49%+
Net investment loss(5) (1.67)+ (1.55) (1.67) (2.27) (2.45)+
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 59% 80% 100% 80% 83%
================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method, rather than the undistributed net investment income method,
because it more accurately reflects the per share data for the period.
(3) For the period from February 21, 1995 (inception date) to October 31,
1995.
(4) If the Adviser had not waived fees for the period ended October 31, 1995,
the total return would have been lower and the annualized expense and net
investment loss ratios would have been 3.37% and (2.27%), respectively.
(5) If the Adviser had not waived fees for the period ended October 31, 1995,
the total return would have been lower and the annualized expense ratio
and net investment loss ratios would have been 4.11% and (3.07%),
respectively.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
The Concert Investment Series 87
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
-----------------------------------------------------------------------------------
Government Fund 1999(1)(2) 1998 1997 1996 1995 1994
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.66 $10.58 $10.40 $10.67 $ 9.99 $11.80
- ---------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.27 0.65 0.69 0.70 0.70 0.69
Net realized and unrealized gain (loss) (0.39) 0.10 0.17 (0.25) 0.68 (1.36)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.12) 0.75 0.86 0.45 1.38 (0.67)
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.31) (0.67) (0.68) (0.72) (0.70) (0.69)
Net realized gains -- -- -- -- -- (0.45)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.31) (0.67) (0.68) (0.72) (0.70) (1.14)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.23 $10.66 $10.58 $10.40 $10.67 $ 9.99
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return (1.12)%++ 7.29% 8.56% 4.58% 14.27% (5.45)%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 188 $ 209 $ 241 $ 287 $ 329 $ 335
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.97%+ 0.88% 0.90% 0.84% 0.83% 0.89%
Net investment income 5.11+ 6.11 6.69 6.79 6.84 7.06
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 116% 141% 104% 276% 214% 256%
=================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
88 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
----------------------------------------------------------------
Government Fund 1999(1)(2) 1998 1997 1996(3)
===============================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.66 $ 10.58 $ 10.41 $ 10.32
- ---------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.24 0.62 0.66 0.15
Net realized and unrealized gain (loss) (0.38) 0.10 0.17 0.09
- ---------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.14) 0.72 0.83 0.24
- ---------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.30) (0.64) (0.66) (0.15)
- ---------------------------------------------------------------------------------------------------------------
Total Distributions (0.30) (0.64) (0.66) (0.15)
- ---------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.22 $ 10.66 $ 10.58 $ 10.41
- ---------------------------------------------------------------------------------------------------------------
Total Return (1.35)%++ 7.00% 8.35% 2.36%++
- ---------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 21 $ 17 $ 14 $ 11
- ---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.47%+ 1.12% 1.15% 1.09%+
Net investment income 4.62+ 5.78 6.44 6.50+
- ---------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 116% 141% 104% 276%
===============================================================================================================
<CAPTION>
Class B Shares
-----------------------------------------------------------------
Government Fund 1999(1)(2) 1998 1997 1996(3)
===============================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.66 $ 10.58 $ 10.41 $ 10.32
- ---------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.21 0.54 0.59 0.14
Net realized and unrealized gain (loss) (0.38) 0.10 0.17 0.09
- ---------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.17) 0.64 0.76 0.23
- ---------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.26) (0.56) (0.59) (0.14)
- ---------------------------------------------------------------------------------------------------------------
Total Distributions (0.26) (0.56) (0.59) (0.14)
- ---------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.23 $ 10.66 $ 10.58 $ 10.41
- ---------------------------------------------------------------------------------------------------------------
Total Return (1.63)%++ 6.20% 7.55% 2.18%++
- ---------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 16 $ 14 $ 12 $ 14
- ---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 2.11%+ 1.87% 1.90% 1.84%+
Net investment income 3.98+ 5.04 5.69 5.74+
- ---------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 116% 141% 104% 276%
===============================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from August 8, 1996 (commencement of distribution) to
October 31, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
The Concert Investment Series 89
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
------------------------------------------------------------------------------------
Growth Fund 1999(1)(2) 1998 1997 1996 1995 1994
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $19.59 $20.94 $17.98 $17.46 $15.31 $16.26
- ----------------------------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.03 0.13 0.17 0.19 0.16 0.13
Net realized and unrealized gain 5.28 2.10 4.33 2.91 3.18 0.21
- ----------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 5.31 2.23 4.50 3.10 3.34 0.34
- ----------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.11) (0.17) (0.18) (0.18) (0.16) (0.11)
Net realized gains (1.82) (3.41) (1.36) (2.40) (1.03) (1.18)
- ----------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.93) (3.58) (1.54) (2.58) (1.19) (1.29)
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $22.97 $19.59 $20.94 $17.98 $17.46 $15.31
- ----------------------------------------------------------------------------------------------------------------------------
Total Return 27.86%++ 12.54% 26.93% 19.94% 24.01% 2.04%
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $4,421 $3,657 $3,547 $3,005 $2,612 $2,170
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.75%+ 0.78% 0.88% 0.93% 1.00% 1.09%
Net investment income 0.31+ 0.63 0.86 1.08 1.04 0.89
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 21% 113% 165% 202% 230% 164%
============================================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
90 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
-----------------------------------------------------------------
Growth Fund 1999(1)(2) 1998 1997 1996(3)
==========================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 19.54 $ 20.89 $ 17.96 $ 16.63
- ----------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.01 0.05 0.15 0.02
Net realized and unrealized gain 5.25 2.13 4.30 1.31
- ----------------------------------------------------------------------------------------------------------
Total Income From Operations 5.26 2.18 4.45 1.33
- ----------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.05) (0.12) (0.16) --
Net realized gains (1.82) (3.41) (1.36) --
- ----------------------------------------------------------------------------------------------------------
Total Distributions (1.87) (3.53) (1.52) --
- ----------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 22.93 $ 19.54 $ 20.89 $ 17.96
- ----------------------------------------------------------------------------------------------------------
Total Return 27.67%++ 12.27% 26.65% 8.00%++
- ----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 273 $ 180 $ 109 $ 49
- ----------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.00%+ 1.02% 1.13% 1.17%+
Net investment income 0.06+ 0.38 0.57 0.46+
- ----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 21% 113% 165% 202%
==========================================================================================================
<CAPTION>
Class B Shares
-----------------------------------------------------------------
Growth Fund 1999(1)(2) 1998 1997 1996(3)
==========================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 19.37 $ 20.75 $ 17.93 $ 16.63
- ----------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) (0.07) (0.11) 0.01 (0.01)
Net realized and unrealized gain 5.21 2.14 4.28 1.31
- ----------------------------------------------------------------------------------------------------------
Total Income From Operations 5.14 2.03 4.29 1.30
- ----------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- (0.11) --
Net realized gains (1.82) (3.41) (1.36) --
- ----------------------------------------------------------------------------------------------------------
Total Distributions (1.82) (3.41) (1.47) --
- ----------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 22.69 $ 19.37 $ 20.75 $ 17.93
- ----------------------------------------------------------------------------------------------------------
Total Return 27.24%++ 11.43% 25.66% 7.82%++
- ----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 277 $ 182 $ 126 $ 74
- ----------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.75%+ 1.75% 1.88% 1.93%+
Net investment loss (0.69)+ (0.35) (0.16) (0.29)+
- ----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 21% 113% 165% 202%
==========================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from August 18, 1996 (commencement of distribution) to
October 31, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
The Concert Investment Series 91
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
----------------------------------------------------------------------------------
Growth and Income Fund 1999(1)(2) 1998 1997 1996 1995 1994
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $18.53 $20.10 $18.11 $16.95 $15.77 $17.13
- -------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.05 0.18 0.24 0.31 0.36 0.29
Net realized and unrealized gain (loss) 3.29 1.70 4.23 2.94 2.72 (0.21)
- -------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 3.34 1.88 4.47 3.25 3.08 0.08
- -------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.04) (0.20) (0.30) (0.34) (0.30) (0.28)
Net realized gains (0.78) (3.25) (2.18) (1.75) (1.60) (1.16)
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.82) (3.45) (2.48) (2.09) (1.90) (1.44)
- -------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $21.05 $18.53 $20.10 $18.11 $16.95 $15.77
- -------------------------------------------------------------------------------------------------------------------------------
Total Return 18.33%++ 10.90% 27.35% 20.58% 22.45% 0.51%
- -------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $1,178 $1,079 $1,097 $ 943 $ 828 $ 712
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.80%+ 0.83% 0.88% 0.91% 0.96% 1.02%
Net investment income 0.48+ 0.90 1.25 1.78 2.27 1.84
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 48% 34% 93% 121% 117% 88%
===============================================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
92 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
-----------------------------------------------------------------
Growth and Income Fund 1999(1)(2) 1998 1997 1996(3)
==========================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 18.53 $ 20.10 $ 18.11 $ 17.19
- ----------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) 0.02 (0.02) 0.20 0.07
Net realized and unrealized gain 3.29 1.85 4.22 0.91
- ----------------------------------------------------------------------------------------------------------
Total Income From Operations 3.31 1.83 4.42 0.98
- ----------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.02) (0.15) (0.25) (0.06)
Net realized gains (0.78) (3.25) (2.18) --
- ----------------------------------------------------------------------------------------------------------
Total Distributions (0.80) (3.40) (2.43) (0.06)
- ----------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.04 $ 18.53 $ 20.10 $ 18.11
- ----------------------------------------------------------------------------------------------------------
Total Return 18.13%++ 10.63% 27.04% 5.72%++
- ----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 161 $ 124 $ 80 $ 33
- ----------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.05%+ 1.07% 1.12% 1.16%+
Net investment income 0.23+ 0.63 0.96 1.78+
- ----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 48% 34% 93% 121%
==========================================================================================================
<CAPTION>
Class B Shares
-----------------------------------------------------------------
Growth and Income Fund 1999(1)(2) 1998 1997 1996(3)
==========================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 18.48 $ 20.07 $ 18.09 $ 17.19
- ----------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) (0.05) (0.01) 0.06 0.04
Net realized and unrealized gain 3.27 1.71 4.22 0.90
- ----------------------------------------------------------------------------------------------------------
Total Income From Operations 3.22 1.70 4.28 0.94
- ----------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.04) (0.12) (0.04)
Net realized gains (0.78) (3.25) (2.18) --
- ----------------------------------------------------------------------------------------------------------
Total Distributions (0.78) (3.29) (2.30) (0.04)
- ----------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 20.92 $ 18.48 $ 20.07 $ 18.09
- ----------------------------------------------------------------------------------------------------------
Total Return 17.68%++ 9.85% 26.08% 5.49%++
- ----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 180 $ 137 $ 99 $ 52
- ----------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.80%+ 1.81% 1.88% 1.91%+
Net investment income (loss) (0.52)+ (0.09) 0.22 1.05+
- ----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 48% 34% 93% 121%
==========================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from August 18, 1996 (commencement of distribution) to
October 31, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
The Concert Investment Series 93
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
-----------------------------------------------------------------
International Equity Fund 1999(1)(2) 1998 1997 1996(3)
==========================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 19.06 $ 18.16 $ 16.52 $ 16.00
- ----------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.16) (0.21) (0.17) (0.03)
Net realized and unrealized gain 5.15 1.11 1.81 0.55
- ----------------------------------------------------------------------------------------------------------
Total Income From Operations 4.99 0.90 1.64 0.52
- ----------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 24.05 $ 19.06 $ 18.16 $ 16.52
- ----------------------------------------------------------------------------------------------------------
Total Return 26.18%++ 4.96% 9.99% 3.25%++
- ----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 3 $ 2 $ 2 $ 0.2
- ----------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(4) 1.77%+ 1.79% 2.26% 2.50%+
Net investment loss(4) (1.39)+ (0.99) (1.24) (1.31)+
- ----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 24% 63% 57% 78%
==========================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from August 8, 1996 (inception date) to October 31, 1996.
(4) If the Advisor had not waived or reimbursed expenses for the period ended
October 31, 1996, the total return would have been lower and the
annualized expense and net investment loss ratios would have been 3.87%
and (2.67%), respectively.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
94 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
------------------------------------------------------------------------------------
International Equity Fund 1999(1)(2) 1998 1997 1996 1995(2)(3)
=============================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 18.94 $ 18.14 $ 16.54 $ 13.86 $ 11.81
- -----------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.20) (0.27) (0.26) (0.19) (0.14)
Net realized and unrealized gain 5.12 1.07 1.86 2.87 2.19
- -----------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 4.92 0.80 1.60 2.68 2.05
- -----------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 23.86 $ 18.94 $ 18.14 $ 16.54 $ 13.86
- -----------------------------------------------------------------------------------------------------------------------------
Total Return 25.98%++ 4.41% 9.74% 19.34% 16.28%(4)++
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 25 $ 20 $ 17 $ 10 $ 7
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(5) 2.16%+ 2.25% 2.56% 2.75% 3.64%+
Net investment loss(5) (1.78)+ (1.46) (1.59) (1.56) (1.40)+
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 24% 63% 57% 78% 17%
=============================================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method, rather than the undistributed net investment income method,
because it more accurately reflects the per share data for the period.
(3) For the period from February 21, 1995 (inception date) to October 31,
1995.
(4) For the purpose of calculating performance, the Fund's inception date is
March 17, 1995 (date the Fund's investment strategy was implemented).
(5) If expenses had not been waived or reimbursed, for the period ended
October 31, 1995 and the year ended October 31, 1996 the total return
would have been lower and the expense and net investment loss ratios would
have been:
Net Investment
Expense Ratio Loss Ratio
------------- --------------
1996 4.12% (2.92)%
1995 5.97+ (3.73)+
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
The Concert Investment Series 95
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class B Shares
------------------------------------------------------------------------------------
International Equity Fund 1999(1)(2) 1998 1997 1996 1995(2)(3)
=============================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 18.44 $ 17.81 $ 16.36 $ 13.79 $ 11.81
- -----------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.27) (0.39) (0.32) (0.26) (0.21)
Net realized and unrealized gain 4.97 1.02 1.77 2.83 2.19
- -----------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 4.70 0.63 1.45 2.57 1.98
- -----------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 23.14 $ 18.44 $ 17.81 $ 16.36 $ 13.79
- -----------------------------------------------------------------------------------------------------------------------------
Total Return 25.49%++ 3.54% 8.93% 18.64% 15.69%(4)++
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 25 $ 18 $ 13 $ 8 $ 2
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(5) 2.91%+ 3.11% 3.30% 3.50% 4.33%+
Net investment loss(5) (2.53)+ (2.32) (2.34) (2.31) (2.80)+
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 24% 63% 57% 78% 17%
=============================================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method, rather than the undistributed net investment income method,
because it more accurately reflects the per share data for the period.
(3) For the period from February 21, 1995 (inception date) to October 31,
1995.
(4) For the purpose of calculating performance, the Fund's inception date is
March 17, 1995 (date the Fund's investment strategy was implemented).
(5) If the expenses had not been waived or reimbursed, for the period ended
October 31, 1995 and the year ended October 31, 1996, the total return
would have been lower and the expense and net investment loss ratios would
have been:
Net Investment
Expense Ratio Loss Ratio
------------- --------------
1996 4.87% (3.67)%
1995 6.67+ (5.13)+
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
96 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31:
<TABLE>
<CAPTION>
Mid Cap Fund Class 1(1)(2) Class A(2)(3) Class B(1)(2)
=======================================================================================
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 11.44 $ 11.40 $ 11.44
- ---------------------------------------------------------------------------------------
Income From Operations:
Net investment income(4) 0.02 0.01 0.00
Net realized and unrealized gain 0.31 0.36 0.32
- ---------------------------------------------------------------------------------------
Total Income From Operations 0.33 0.37 0.32
- ---------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- --
Net realized gains -- -- --
- ---------------------------------------------------------------------------------------
Total Distributions -- -- --
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.77 $ 11.77 $ 11.76
- ---------------------------------------------------------------------------------------
Total Return++ 2.88% 3.25% 2.80%
- ---------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $ 260 $ 4,244 $ 3,710
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(4) 1.25% 1.50% 2.25%
Net investment income 1.13 0.35 0.34
- ---------------------------------------------------------------------------------------
Portfolio Turnover Rate 23% 23% 23%
=======================================================================================
</TABLE>
(1) For the period from March 16, 1999 (inception date) to April 30, 1999
(unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from March 15, 1999 (inception date) to April 30, 1999.
(4) The Manager has waived all of its fees for the period ended April 30,
1999. In addition, the Manager has reimbursed the Fund for $13,361 in
expenses for the period ended April 30, 1999. If such fees were not waived
and expenses not reimbursed, the per share effect on net investment income
and the expense ratios would have been as follows:
Expense Ratios
Net Investment Income Without Fee Waiver
Per Share Decrease and Reimbursement
------------------ -----------------
Class 1 $0.06 5.19%+
Class A 0.05 4.58+
Class B 0.06 6.49+
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
The Concert Investment Series 97
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
------------------------------------------------------------------------------------
Municipal Bond Fund 1999(1)(2) 1998 1997 1996 1995 1994
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.41 $14.21 $13.83 $13.77 $12.89 $14.07
- ---------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.33 0.68 0.69 0.70 0.74 0.71
Net realized and unrealized gain (loss) (0.15) 0.31 0.39 0.11 0.87 (1.18)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.18 0.99 1.08 0.81 1.61 (0.47)
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.34) (0.66) (0.66) (0.71) (0.73) (0.71)
Net realized gains (0.23) (0.13) (0.04) (0.04) -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.57) (0.79) (0.70) (0.75) (0.73) (0.71)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $14.02 $14.41 $14.21 $13.83 $13.77 $12.89
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return 1.30%++ 7.20% 8.04% 6.09% 12.72% (3.38)%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 88 $ 94 $ 104 $ 119 $ 119 $ 112
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.00%+ 1.01% 0.98% 1.05% 0.96% 0.99%
Net investment income 4.71+ 4.77 4.93 5.13 5.58 5.27
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 8% 28% 50% 80% 49% 4%
=================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
98 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
-----------------------------------------------------------------
Municipal Bond Fund 1999(1)(2) 1998 1997 1996(3)
===============================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 14.41 $ 14.21 $ 13.83 $ 13.78
- ---------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.31 0.62 0.65 0.11
Net realized and unrealized gain (loss) (0.15) 0.34 0.40 0.04
- ---------------------------------------------------------------------------------------------------------------
Total Income From Operations 0.16 0.96 1.05 0.15
- ---------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.32) (0.63) (0.63) (0.10)
Net realized gains (0.23) (0.13) (0.04) --
- ---------------------------------------------------------------------------------------------------------------
Total Distributions (0.55) (0.76) (0.67) (0.10)
- ---------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 14.02 $ 14.41 $ 14.21 $ 13.83
- ---------------------------------------------------------------------------------------------------------------
Total Return 1.18%++ 6.93% 7.77% 1.12%++
- ---------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 28 $ 16 $ 9 $ 2
- ---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.25%+ 1.23% 1.19% 1.30%+
Net investment income 4.47+ 4.44 4.79 4.82+
- ---------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 8% 28% 50% 80%
===============================================================================================================
<CAPTION>
Class B Shares
-----------------------------------------------------------------
Municipal Bond Fund 1999(1)(2) 1998 1997 1996(3)
===============================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.39 $14.20 $13.82 $13.78
- ---------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.26 0.51 0.54 0.09
Net realized and unrealized gain (loss) (0.15) 0.33 0.40 0.04
- ---------------------------------------------------------------------------------------------------------------
Total Income From Operations 0.11 0.84 0.94 0.13
- ---------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.27) (0.52) (0.52) (0.09)
Net realized gains (0.23) (0.13) (0.04) --
- ---------------------------------------------------------------------------------------------------------------
Total Distributions (0.50) (0.65) (0.56) (0.09)
- ---------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $14.00 $14.39 $14.20 $13.82
- ---------------------------------------------------------------------------------------------------------------
Total Return 0.82%++ 6.10% 6.98% 0.93%++
- ---------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 8 $ 6 $ 3 $ 1
- ---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 2.00%+ 1.95% 1.94% 2.05%+
Net investment income 3.71+ 3.67 4.04 4.06+
- ---------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 8% 28% 50% 80%
===============================================================================================================
</TABLE>
(1) For the six months ended April 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from August 18, 1996 (commencement of distribution) to
October 31, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
The Concert Investment Series 99
<PAGE>
- --------------------------------------------------------------------------------
Management of the Series
- --------------------------------------------------------------------------------
Board of Trustees
Donald M. Carlton
A. Benton Cocanougher
Stephen Randolph Gross
Heath B. McLendon
Alan G. Merten
R. Richardson Petit
Officers
Heath B. McLendon
Chairman
John Richards
President
Lewis E. Daidone
Senior Vice President and Treasurer
Sandip A. Bhagat
Vice President and Investment Officer
James E. Conroy
Vice President and Investment Officer
Joseph P. Deane
Vice President and Investment Officer
R. Jay Gerken
Vice President and Investment Officer
Jeffrey J. Russell
Vice President and Investment Officer
Larry B. Weissman
Vice President and Investment Officer
Irving P. David
Controller
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Adviser and Administrator
SSBC Fund Management Inc.
Distributor
CFBDS, Inc.
Custodians
PNC Bank
Chase Manhattan Bank, N.A.
This report is submitted for the general information of the shareholders of The
Concert Investment Series. It is not authorized for distribution to prospective
investors unless accompanied or preceded by a current Prospectus for the Fund,
which contains information concerning the Fund's investment policies and
expenses as well as other pertinent information.
- --------------------------------------------------------------------------------
100 1999 Semi-Annual Report to Shareholders
<PAGE>
[GRAPHIC]
CISS 6/99
