<PAGE>
[GRAPHIC]
The Concert
Investment Series
Annual Report
October 31, 1999
[LOGO OF SBMF]Smith Barney
Mutual Funds
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<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 ........................................... 17
International Equity Fund ........................................ 22
Mid Cap Fund ..................................................... 26
Municipal Bond Fund .............................................. 30
Schedules of Investments ............................................... 35
Statements of Assets and Liabilities ................................... 68
Statements of Operations................................................ 72
Statements of Changes in Net Assets..................................... 74
Notes to Financial Statements .......................................... 78
Financial Highlights ................................................... 91
Report of Independent Auditors.......................................... 105
Tax Information ........................................................ 106
Management of the Series ............................................... 107
<PAGE>
Dear Shareholder:
[PHOTO]
HEATH B. MCLENDON
Chairman
Concert Investment
Series
We are pleased to present the annual report for the Concert Investment Series
for the year ended October 31, 1999. We hope you find this report to be useful
and informative. The performance and current holdings of each Fund are discussed
in greater detail on the following pages. The chart below lists the total return
for the year ended October 31, 1999 for each Fund. In general, we are pleased
with the Funds' overall performance, given the recent volatility prevalent in
financial markets.
The Performance of the Concert Investment Series Funds
Class A Shares Total Returns for the Twelve Months Ended October 31, 1999
Without With Sales
Sales Charge/1/ Charge/2/
- -------------------------------------------------------------------
Emerging Growth Fund 33.02% 26.37%
Government Fund (3.51) (7.83)
Growth Fund 35.24 28.47
Growth and Income Fund 19.93 13.90
International Equity Fund 70.22 61.69
Mid Cap Fund/3/ 5.35 0.08
Municipal Bond Fund (4.58) (8.88)
The Concert Investment Series:
Our Core Beliefs
The Concert Investment Series Funds seek to provide you with personal attention
combined with experienced portfolio management. Our goal is to seek consistent,
long-term performance while managing risk.
Within the Concert Investment Series, we emphasize investment strategies which
we believe are best suited to attain the specific investment objectives of each
Fund. We believe our focus differentiates these Funds and offers our clients a
more complete range of asset allocation choices within the Concert Investment
Series family of funds.
Market Commentary
Many of the world's financial markets fell a year ago following Russia's
unexpected debt defaults, a major hedge fund crisis and a currency devaluation
in Brazil. Meanwhile, economic upheavals in Asia were also causing serious
repercussions internationally. Yet, by the end of the period, many global stock
and bond markets experienced a dramatic reversal of fortune.
Recently released economic data from the U.S. Commerce Department provided the
first concrete evidence that the U.S. economy may have been structurally
transformed in an extremely positive way during the period. In fact, recent data
suggests to us that the economy has actually been growing more strongly than had
been previously estimated. The term "new economic era" may explain to a large
extent the changes in stock market valuations that have occurred over the past
several years. While short-term market fluctuations may be expected as a result
of Y2K concerns or future Federal Reserve Board ("Fed") monetary policy changes,
we are guardedly optimistic about our economic future.
U.S. Gross Domestic Product ("GDP") rose 4.8% in the third quarter of 1999 and
economic growth appears to be strong. Meanwhile, inflation and labor cost
pressures remain contained. As of October 31, 1999, the employment cost index
was up just 3.1% from one year ago. Still Fed Chairman Alan Greenspan has stated
that the economy may still be growing faster than its potential. Hopes for a
loosening of government regulation that would help financial stocks, and signs
of stronger corporate earnings amid moderating economic growth all combined to
boost the U.S. stock market in the second half of October 1999.
In other parts of the world, growth picked up in Europe and Asia, where a great
deal of corporate restructuring is taking place. Europe's new economy has
contributed to
- -----------------
/1/ These total return figures do not reflect the deduction of a sales charge
for each Fund's Class A shares.
/2/ 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, Growth Fund, and Mid Cap Fund; up to 4.50% with
respect to the Government and Municipal Funds.
In addition, both columns of data in the first column 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.
/3/ For the period from March 16, 1999 (inception date) to October 31, 1999.
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The Concert Investment Series 1
<PAGE>
the consolidation of businesses and the creation of even stronger and more
competitive European companies. We continue to see the amazing resilience of the
economies of Southeast Asia, as the region returns to economic stability and
growth -- albeit at a slower, yet more sustainable, rate.
The globalization of financial markets has also continued as the New York Stock
Exchange and NASDAQ add more foreign stocks for trading. Investors today have
more investment options than ever before as trading hours expand, allowing for
broader investor participation and pursuit of investment opportunities.
Thank you for investing in the Concert Investment Series Funds. We remain
committed to seeking to provide our shareholders with competitive performance in
the years ahead, and look forward to serving your financial needs in the future.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
Concert Investment Series
November 15, 1999
The Internet Age:
Reshaping Global Opportunities
The Internet age has come into its own. Increasingly sophisticated financial
transactions of all types are being handled electronically with the click of a
mouse regardless of whether you are in New York, Buenos Aires or Timbuktu.
Global investors, and the markets in which they invest, have been positively
affected by a continuous influx of technological advances.
A recent technology conference raised compelling arguments why the technology
and communications industries may be solid performers in the years ahead.
Although near-term issues persist, we continue to believe that the Internet will
remain a powerful driver of stock share prices. The Internet is gaining 2.5
million users per month, and many of these people will become active on-line
consumers. Moreover, Dell, a global computer systems company, estimates that 15%
of all U.S. Gross Domestic Product ("GDP") could soon come from Internet
electronic commerce. There are no shortage of companies willing to provide the
systems and services necessary to facilitate online transactions.
In the coming years, we expect e-commerce to represent an outstanding
opportunity as a diverse group of companies attempt to increase their
productivity through online sourcing and more direct distribution. For example,
online buying is no longer limited to books and smaller retail items,
business-to-business e-commerce is expanding as well. Even traditional
industrial manufacturing companies are aggressively moving toward e-commerce.
Moreover, while the e-commerce revolution is already booming in the U.S., the
international markets present enormous opportunities. Internet penetration is
much lower in Europe and Asia than in the United States. With the rebound in
global growth and Asia emerging from its slump, we expect that other regions of
the world may soon begin to catch up with the United States in an effort to
become more efficient and more competitive.
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2 1999 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./1/ 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
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/2/
For the year ended October 31, 1999, the Fund's Class A shares returned 33.02%,
without sales charges, versus 14.87% for the Russell 2000 Stock Index for the
same period. (The Russell 2000 Index measures the performance of the 2,000
smallest companies in the Russell 3000 Index. The index is unmanaged and not
subject to the same management and trading expenses of a mutual fund.)
On December 13, 1999, the Board of Directors of the Concert Investment Series
approved changing the name of the Fund to the Small Cap Fund. The Fund shall
file a post-effective amendment with the Securities and Exchange Commission that
shall make this name change effective in January 2000.
In managing the Fund, our stock selection process favors companies that are able
to grow earnings above consensus expectations, yet offer attractive relative
value. In order to help achieve consistent relative performance versus its
benchmark, the Fund is managed to mirror the overall risk and sector weightings
of the universe of smaller-sized companies.
Over the last twelve months, we have shifted the Fund's focus to a greater
emphasis on small-cap stocks. We believe that our small-cap stock orientation is
what differentiates the Fund from many of its mid- and large-cap peers.
During the period, the Fund emphasized growth-oriented sectors, specifically,
technology, healthcare and consumer discretionary. Thus far our best stock picks
have come from the technology sector. Technology, particularly in the small-cap
universe, continues to generate high returns. Our holdings/3/ in software
companies such as Adobe and Cognizant, and semiconductor and electronic
companies such as LAM Research and Sawtek, have performed extremely well so far
in 1999, on strong earnings growth and rising expectations about future
earnings.
The Internet sector was particularly strong during the period. In early 1999, we
benefited from a number of modest positions in browser and search engine
companies (i.e., Lycos, Excite, Doubleclick) as well as online trading companies
(i.e., E*TRADE Group). In recent months, we shifted some of our assets into
smaller Internet-related companies such as USWeb and Go2Net, which have
rebounded sharply from their second quarter 1999 lows.
- ------------
/1/ 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.
/2/ As of October 31, 1999, the companies cited in this section represented a
percentage of the Fund's total investments (i.e. Adobe (0.7%), Cognizant
(0.8%), LAM Research (0.9%), Sawtek (0.5%), E*TRADE Group (0.4%), USWeb
(0.8%), Go2Net (0.8%), Roberts Pharmaceuticals (0.5%), Jones
Pharmaceuticals (0.4%), Millennium (0.8%), Weatherford International (0.5%)
and Barrett Resources (0.5%)). However, as of October 31, 1999, the Fund
did not hold any position in Lycos, Excite, Doubleclick and Smith
International.
/3/ Please note that the Fund's holdings are subject to change.
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The Concert Investment Series 3
<PAGE>
In the healthcare sector, our holdings in a diverse set of drug and
pharmaceutical companies, such as Roberts Pharmaceuticals, Jones Pharmaceuticals
and Millennium Pharmaceuticals have performed well as many investors favored
these companies because of high earnings growth. We think it's worth noting that
the energy sector experienced a spectacular revival in March and April when oil
prices bottomed and several energy stocks rose by more than 50%. The Fund held
modest positions in Smith International, Weatherford International and Barrett
Resources which performed better than the overall energy group.
Small-cap stocks have underperformed large-cap stocks significantly over the
last several months. A small-cap rally was beginning to develop in the second
quarter of 1999 but has since been stalled as a result of Fed tightening and
rising interest rates. In our opinion, as Y2K fears dissipate and interest rates
stabilize over the next several months, small cap stocks may well resume their
comeback and make up the huge deficit they are currently experiencing relative
to large-cap stocks.
Please see pages five and six for additional Fund performance information.
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4 1999 Annual Report to Shareholders
<PAGE>
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Emerging Growth Fund
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Historical Performance -- Class 1 Shares
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<TABLE>
<CAPTION>
Net Asset Value
------------------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 20.28 $ 25.33 $ 0.00 $ 1.53 33.42%
- ----------------------------------------------------------------------------------------------------------
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
Year Ended of Year of Year Dividends Distributions Returns(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 20.15 $ 25.08 $ 0.00 $ 1.53 33.02%
- ----------------------------------------------------------------------------------------------------------
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
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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
Year Ended of Year of Year Dividends Distributions Returns(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 19.60 $ 24.16 $ 0.00 $ 1.53 32.00%
- ----------------------------------------------------------------------------------------------------------
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
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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 (unaudited)
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Without Sales Charges(1)
----------------------------------------
Class 1 Class A Class B
================================================================================
Year Ended 10/31/99 33.42% 33.02% 32.00%
- --------------------------------------------------------------------------------
Inception* through 10/31/99 14.02 19.34 18.45
================================================================================
With Sales Charges(2)
----------------------------------------
Class 1 Class A Class B
================================================================================
Year Ended 10/31/99 22.10% 26.37% 27.00%
- --------------------------------------------------------------------------------
Inception* through 10/31/99 10.93 18.04 18.33
================================================================================
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Cumulative Total Returns (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (Inception* through 10/31/99) 52.77%
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Class A (Inception* through 10/31/99) 129.26
- --------------------------------------------------------------------------------
Class B (Inception* through 10/31/99) 121.35
================================================================================
(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.
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6 1999 Annual Report to Shareholders
<PAGE>
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Emerging Growth Fund at a Glance (unaudited)
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Growth of $10,000 Invested in Class A and B Shares of the
Emerging Growth Fund vs. Russell 2000 Stock Index+
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[CHART]
February 1995--October 1999
Emerging Growth Fund Emerging Growth Fund Russell 2000
-- Class A -- Class B Stock Index
2/21/95 9,448 10,000 10,000
Oct-95 12,104 12,743 11,835
Oct-96 14,856 15,529 13,801
Oct-97 17,664 18,315 17,850
Oct-98 16,284 16,768 15,737
10/31/99 21,660 22,135 18,077
+ 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 October
31, 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 the other class.
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.
<TABLE>
<CAPTION>
Industry Diversification of Common Stock* Investment Allocation as of October 31, 1999
- ------------------------------------------- ----------------------------------------------
<S> <C>
[CHART] [CHART]
2.0% Auto & Transportation 5.8% Repurchase Agreement and U.S. Treasury Bills
18.9% Consumer Discretionary 94.2% Common Stock
0.7% Consumer Staples
9.9% Finance
14.7% Health Care
4.4% Materials & Processing
2.5% Other Energy
5.3% Producer Durables
38.4% Technology
3.2% Utilities
</TABLE>
* As a percentage of total common stock.
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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.1 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 year ended October 31, 1999, the Fund's Class A shares returned a
negative 3.51% without sales charges. In comparison, the Lehman Brothers
Government/Corporate Bond Index had a return of negative 0.66% during the same
period. (The Lehman Brothers Government/Corporate Bond Index is a broad measure
of the performance of government and corporate, fixed-rate debt issues. The
index is unmanaged and not subject to the same management and trading expenses
of a mutual fund.)
Yields from U.S. Treasury Securities
The chart below shows the yields on U.S. Treasuries as of October 31, 1999 and
1998.
10/31/99 10/31/98
-------- --------
3-month U.S. Treasury Bill 5.11% 4.39%
2-year U.S. Treasury Note 5.82 4.26
5-year U.S. Treasury Note 5.98 4.38
10-year U.S. Treasury Bond 6.05 4.76
30-year U.S. Treasury Bond 6.18 5.23
Please note that the high yield on the 30-year U.S. Treasury Bond was 6.39% on
October 28, 1999, and the low yield was 4.96% on December 10, 1998.
The period was marked by continued strong U.S. economic growth, historically low
inflation and low unemployment. Diminishing liquidity in the bond market was
precipitated by the global financial crisis that reached its climax in October
1998. Meanwhile, the Fed reversed its three short-term interest rate movements,
with 25-basis-point increases implemented on June 30, August 24 and November 16,
1999, respectively. (100 basis points are equal to one percent.)
Within the Fund, we have sought to maximize income through mortgage-backed
securities, buying coupon at or near par and avoiding any potential prepayment
risk. (Coupon is the periodic interest payment made to the bondholders during
the life of the bond. Prepayment risk refers to payments made in excess of
scheduled mortgage principal repayments.)
In our view, lackluster performance in fixed-income markets has been a direct
result of Fed monetary policy actions. While presumably aimed at stock market
exuberance, it is the bond market that has taken the brunt of any correction on
fears of further Fed interest rate increases. The current lack of inflationary
evidence defies a historically tight labor market and reinforces the influence
of technology and the power of global pricing constraints.
Our investment strategy during this period has included slowly buying U.S.
Treasuries and extending maturities as interest rates rose. In addition, we
anticipate an economic slowdown through the end of 1999 and into the first
quarter of 2000. In our view, we have probably seen the highs in yields over the
near term, and our strategy in the coming months will be to increase our U.S.
Treasury exposure and reduce our mortgage-backed securities holdings as we
believe that rates will continue to decline. At the close of the period, we were
allocated at approximately 86% mortgage-backed securities and 14% U.S.
Treasuries.
Please see pages nine and ten for additional Fund performance information.
- ----------------
1 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 Annual Report to Shareholders
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
Government Fund
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- -------------------------------------------------------------------------------------------------------------------------
Net Asset Value
--------------------------
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
10/31/99 $10.66 $ 9.74 $0.54 $0.00 $0.05 (3.16)%
- -------------------------------------------------------------------------------------------------------------------------
10/31/98 10.58 10.66 0.67 0.00 0.00 7.29
- -------------------------------------------------------------------------------------------------------------------------
10/31/97 10.40 10.58 0.68 0.00 0.00 8.56
- -------------------------------------------------------------------------------------------------------------------------
10/31/96 10.67 10.40 0.72 0.00 0.00 4.58
- -------------------------------------------------------------------------------------------------------------------------
10/31/95 9.99 10.67 0.70 0.00 0.00 14.27
- -------------------------------------------------------------------------------------------------------------------------
10/31/94 11.80 9.99 0.69 0.45 0.00 (5.45)
- -------------------------------------------------------------------------------------------------------------------------
10/31/93 11.56 11.80 0.76 0.19 0.00 10.55
- -------------------------------------------------------------------------------------------------------------------------
10/31/92 11.47 11.56 0.86 0.07 0.00 9.32
- -------------------------------------------------------------------------------------------------------------------------
10/31/91 10.79 11.47 0.90 0.00 0.00 15.16
- -------------------------------------------------------------------------------------------------------------------------
10/31/90 11.46 10.79 0.96 0.22 0.00 4.94
=========================================================================================================================
Total $7.48 $0.93 $0.05
=========================================================================================================================
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- -------------------------------------------------------------------------------------------------------------------------
Net Asset Value
--------------------------
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
10/31/99 $10.66 $ 9.73 $0.51 $0.00 $0.05 (3.51)%
- -------------------------------------------------------------------------------------------------------------------------
10/31/98 10.58 10.66 0.64 0.00 0.00 7.00
- -------------------------------------------------------------------------------------------------------------------------
10/31/97 10.41 10.58 0.66 0.00 0.00 8.35
- -------------------------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 10.32 10.41 0.15 0.00 0.00 2.36+
=========================================================================================================================
Total $1.96 $0.00 $0.05
=========================================================================================================================
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- -------------------------------------------------------------------------------------------------------------------------
Net Asset Value
--------------------------
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
10/31/99 $10.66 $ 9.74 $0.43 $0.00 $0.05 (4.17)%
- -------------------------------------------------------------------------------------------------------------------------
10/31/98 10.58 10.66 0.56 0.00 0.00 6.20
- -------------------------------------------------------------------------------------------------------------------------
10/31/97 10.41 10.58 0.59 0.00 0.00 7.55
- -------------------------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 10.32 10.41 0.14 0.00 0.00 2.18+
=========================================================================================================================
Total $1.72 $0.00 $0.05
=========================================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends monthly and capital gains, if
any, annually.
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The Concert Investment Series 9
<PAGE>
- --------------------------------------------------------------------------------
Government Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-------------------------------------------
Class 1 Class A Class B
================================================================================
Year Ended 10/31/99 (3.16)% (3.51)% (4.17)%
- --------------------------------------------------------------------------------
Five Years Ended 10/31/99 6.15 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 10/31/99 6.41 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 10/31/99 6.70 4.53 3.76
================================================================================
Without Sales Charges(2)
-------------------------------------------
Class 1 Class A Class B
================================================================================
Year Ended 10/31/99 (9.68)% (7.83)% (8.29)%
- --------------------------------------------------------------------------------
Five Years Ended 10/31/99 4.69 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 10/31/99 5.67 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 10/31/99 6.11 3.04 3.22
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (10/31/89 through 10/31/99) 86.12%
- --------------------------------------------------------------------------------
Class A (Inception* through 10/31/99) 15.37
- --------------------------------------------------------------------------------
Class B (Inception* through 10/31/99) 12.68
================================================================================
(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 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 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+
- --------------------------------------------------------------------------------
October 1989--October 1999
[CHART]
Lehman Brothers Merrill Lynch
Growth Fund -- Mutual Fund General U.S. Treasury
Class 1 Shares U.S. Government Index 5-10 Years Index
10/31/89 9,325 10,000 10,000
Oct-90 9,785 10,593 10,583
Oct-91 11,268 12,140 12,251
Oct-92 12,318 13,394 13,711
Oct-93 13,618 15,152 15,670
Oct-94 12,876 14,475 14,728
Oct-95 14,712 16,701 17,371
Oct-96 15,387 17,556 18,188
Oct-97 16,704 19,077 19,829
Oct-98 17,921 21,229 22,499
10/31/99 17,355 20,973 21,810
+ Hypothetical illustration of $10,000 invested in Class 1 shares on October
31, 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 October 31, 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*
- --------------------------------------------------------------------------------
[CHART] U.S. Treasury Securities are debt obligations of
the United States Government. They are secured by
73.2% GNMA the full faith and credit of the Federal
13.7% U.S. TREASURY Government, and include such instruments as
OBLIGATIONS Treasury bonds, notes and bills.
13.1% FMNA & FHLMC
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.
* As a percentage of total investments.
- --------------------------------------------------------------------------------
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:
15 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/1/
For the year ended October 31, 1999, the Fund's Class A shares returned 35.24%,
without sales charges, versus a gain for the Standard & Poor's 500 Index ("S&P
500") of 25.66% on a total return basis. (The S&P 500 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 include reinvestment of
dividends and capital gains. The index is unmanaged and not subject to the same
management and trading expenses of a mutual fund.)
In the entire history of the Fund, this year has been the best in terms of
relative performance. We believe we've built a long-term growth portfolio that
has the potential to outperform our benchmark, yet with potentially lower risk
than many other growth-oriented funds. (Of course, past performance is not
indicative of future results.) When we assumed management of the Fund, our goal
was to bring it more in line with its investment objectives -a goal that we
believe has been accomplished. For example, we've built a more concentrated
portfolio of companies with higher growth potential and greater consistency,
we've reduced the Fund's turnover ratio and we've improved the Fund's relative
performance versus its benchmark, the S&P 500.
Although the stock market has been extremely volatile and leadership changes
have been difficult to anticipate, our focus on buying and holding high quality,
well-managed and well-positioned companies over time has helped us to weather
severe market turbulence and has rewarded us with consistent performance. We
continue to pursue a measured and disciplined approach to investing in quality
companies over the long term.
Within the Fund, we are extremely well diversified across sectors and individual
companies with our largest ten positions making up only 28% of the portfolio,
which is much lower than many other comparable mutual funds. Although we are
fully invested, we have sought to react quickly to changing fundamentals and to
protect the value of our assets in deteriorating situations. While we look for
established growth companies (i.e., the Fund's median market capitalization is
more than $30 billion), we do own a complement of medium-sized, faster-growing
companies that should be in a good position to post solid growth in the future.
Currently, the Fund's largest sector concentrations are in finance, healthcare
and technology. We believe that the financial sector, which has been under
pressure this year due to rising interest rates, provides the best risk and
return tradeoff of any sector in the market today. As a result, we have been
increasing our weighting in finance companies. As interest rate fears begin to
subside, we believe our investment in proven market leaders such as AIG,
Providian, Capital One and Chase Manhattan should prove fruitful when investors
regain interest in this sector./2/
- -----------
/1/ As of October 31, 1999, the companies cited in this section represented a
percentage of the Fund's total investments (i.e. AIG (1.8%), Providian
(1.5%), Capital One (1.7%), Chase Manhattan (2.0%), Microsoft (3.2%), Cisco
(2.9%), AOL (2.3%), Intel (2.3%), Merck (2.9%), Pfizer (1.4%),
Bristol-Myers Squibb (1.5%), Sepracor (3.1%), General Electric (2.1%), MCI
WorldCom (1.9%) and Time Warner (1.6%)).
/2/ Please note that the Fund's holdings are subject to change.
- --------------------------------------------------------------------------------
12 1999 Annual Report to Shareholders
<PAGE>
Our largest holdings are spread over a variety of different industries. Yet, we
believe that they all share inherent competitive advantages that should result
in stable and consistent growth. For example, Microsoft, Cisco, AOL and Intel
are undisputed technology leaders. Merck, Pfizer and Bristol-Myers Squibb are
pioneers in new drug development, while Sepracor is the leader in re-developing
and improving existing drugs. General Electric, MCI WorldCom and Time Warner all
have enviable track records and possess what we believe are bright future
prospects./2/
We appreciate your trust and support in our investment approach.
Please see pages fourteen and fifteen for additional Fund performance
information.
- --------------------------------------------------------------------------------
The Concert Investment Series 13
<PAGE>
- --------------------------------------------------------------------------------
Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
------------------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 19.59 $ 24.36 $ 0.11 $ 1.82 35.60%
- ----------------------------------------------------------------------------------------------------------
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)
==========================================================================================================
Total $ 1.62 $ 14.41
==========================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
------------------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 19.54 $ 24.29 $ 0.05 $ 1.82 35.24%
- ----------------------------------------------------------------------------------------------------------
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
Year Ended of Year of Year Dividends Distributions Returns(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 19.37 $ 23.95 $ 0.00 $ 1.82 34.31%
- ----------------------------------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
14 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-----------------------------------------
Class 1 Class A Class B
================================================================================
Year Ended 10/31/99 35.60% 35.24% 34.31%
- --------------------------------------------------------------------------------
Five Years Ended 10/31/99 23.57 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 10/31/99 16.76 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 10/31/99 14.58 25.95 25.02
================================================================================
With Sales Charges(2)
-----------------------------------------
Class 1 Class A Class B
================================================================================
Year Ended 10/31/99 24.07% 28.47% 29.31%
- --------------------------------------------------------------------------------
Five Years Ended 10/31/99 21.40 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 10/31/99 15.73 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 10/31/99 13.78 23.94 24.63
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (10/31/89 through 10/31/99) 371.09%
- --------------------------------------------------------------------------------
Class A (Inception* through 10/31/99) 109.36
- --------------------------------------------------------------------------------
Class B (Inception* through 10/31/99) 104.43
================================================================================
(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 15
<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+
- --------------------------------------------------------------------------------
[CHART]
October 1989--October 1999
Growth Fund--Class 1 Shares Standard & Poor's 500 Index
Oct-89 9,151 10,000
Oct-90 8,352 9,252
Oct-91 11,685 12,343
Oct-92 12,834 13,571
Oct-93 14,656 15,594
Oct-94 14,964 16,197
Oct-95 18,556 20,474
Oct-96 22,255 25,406
Oct-97 28,249 33,562
Oct-98 31,792 40,948
Oct-99 43,110 51,456
+ Hypothetical illustration of $10,000 invested in Class 1 shares on October
31, 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 October 31, 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.
<TABLE>
<CAPTION>
Industry Diversification of Common Stock* Investment Allocation as of October 31, 1999
- ------------------------------------------- ----------------------------------------------
<S> <C>
[CHART] [CHART]
5.8% Consumer Distribution 2.0% U.S. Government Obligation
4.2% Consumer Non-Durables 3.8% Repurchase Agreement
10.1% Consumer Services 94.2% Common Stock
5.9% Energy
18.1% Finance
15.3% Health Care
5.7% Producer Manufacturing
25.6% Technology
7.9% Utilities
1.4% Other
</TABLE>
*As a percentage of total common stock.
- --------------------------------------------------------------------------------
16 1999 Annual Report to Shareholders
<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/1/
For the year ended October 31, 1999, the Fund's Class A shares returned 19.93%,
without sales charges, versus the Standard & Poor's 500 Index ("S&P 500") return
of 25.66%. (The S&P 500 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 include reinvestment of dividends and capital gains. The index
is unmanaged and is not subject to the same management and trading expenses of a
mutual fund.)
After climbing steadily for the first six months of the period, stocks have been
in a relatively narrow trading range most recently. However some performance
trends of the past year are a continuation of the last several years. For
example, large capitalization stocks continue to outperform small ones, and
growth stocks boast higher returns than value stocks. (Growth stocks have
earnings that are likely to grow faster than the overall market, while value
stocks appear relatively inexpensive.) The trend towards larger capitalization
stocks has helped boost performance, as the Fund primarily invests in larger
companies. The outperformance of growth stocks is more ambiguous, as the Fund
invests in both growth and value stocks. In general, the "value" part of the
portfolio has hindered relative performance, while the "growth" portion has
boosted returns.
We manage the Growth and Income 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 tradeoff of
growth and value can be described as searching for growth at a reasonable price.
In our last commentary, we described how we now manage the Fund's portfolio even
more closely to the overall market on both a sector and an individual stock
basis. We are keeping the portfolio's sector allocations close to those of the
overall market. In addition, we are limiting the percentage the Fund can invest
in any individual stock. First, we measure each stock versus its weighting in
the overall market. Then, the maximum variance of an individual stock purchase
from its market weight is generally limited to 1% or less. The result: a very
diversified portfolio.
In addition, we are managing the Fund as a fully invested equity portfolio.
Under most market conditions we intend to continue our substantial commitment to
equities.
There are a number of stocks no longer owned by the Fund. In some cases, these
stocks merged into other
- -------------
/1/ As of October 31, 1999, the companies cited in this section represented a
percentage of the Fund's total investments (i.e. SBC Communications (2.4%),
Fleet Boston (0.8%), AXA Financial (0.7%), General Dynamics (0.9%),
Wal-Mart (1.5%), Hewlett-Packard (1.2%), Best Buy (0.4%), Baxter
International (0.3%), Biogen (0.7%), and Columbia/HCA (0.5%)). However, as
of October 31, 1999, the Fund did not hold any positions in Ameritech,
Albertsons, Rite Aid, Nordstrom, McKesson Corp. and Medtronic.
- --------------------------------------------------------------------------------
The Concert Investment Series 17
<PAGE>
entities. For example, Ameritech merged into SBC Communications, Bank of Boston
became Fleet Boston Corp., the Equitable Companies merged into AXA Financial and
Gulfstream Aerospace became part of General Dynamics.
The top holdings in the Fund have not changed meaningfully from our last report.
Wal-Mart joined our top-ten list, while Hewlett-Packard slipped from the top-ten
list. As its stock price appreciated, we trimmed the Hewlett-Packard position
slightly. And SBC Communications replaced Ameritech in the top ten, following
the merger mentioned before.
During the period, we were net sellers of retail shares, unloading Albertson's,
Rite Aid and Nordstrom while purchasing Best Buy. We sold Albertson's, as the
company is in the midst of rationalizing a recent merger with American Stores.
Similarly, Rite Aid is feeling the affects of an overly aggressive expansion
program, while Nordstrom is attempting to become consistently profitable.
We purchased Best Buy because we believe the company should benefit from renewed
consumer purchases of electronic goods.
Within health care, we were net buyers. We purchased Baxter International,
Biogen and Columbia/HCA while selling McKesson Corp. and Medtronic. Baxter is a
relatively inexpensive stock, but possesses strong franchises, such as its blood
therapy business. Biogen is one of the most promising biotechnology companies,
with important multiple sclerosis drugs. Columbia/HCA is an experienced operator
of for-profit hospitals. We purchased the stock on a valuation basis, as the
company appears quite inexpensive relative to the market. We sold McKesson as
they continued to have trouble integrating their hospital software acquisition.
And Medtronic looked expensive relative to its expected growth rate.
There were no other concentrations of trades in a particular sector, as other
transactions were scattered across financial, consumer and manufacturing stocks.
The U.S. economy is continuing its spectacular performance. The economy boasts
strong growth coupled with low inflation. According to the U.S. Labor
Department, unemployment is now at 4.1%, a level last reached in 1970. Partly
because of strong employment growth, consumer confidence is high. At the same
time, inflation remains surprisingly low. So we have not yet seen the
traditional tradeoff, with higher employment triggering higher inflation.
The stock market's rise has confirmed its approval of this economy. Bond
investors have been wary, however, as interest rates have risen. Fears of
not-yet-visible inflation have fueled interest rate increases. Some of these
fears were shared by the Federal Reserve, as it raised interest rates in June
and then again in August.
At this point, however, we believe that current interest rates reflect the
possibility of somewhat higher inflation. We do not think that there is going to
be any further meaningful deterioration in bond prices. So in a relatively flat
interest rate environment, stocks should reflect the still strong corporate
earnings environment. We expect this earnings trend to remain intact through
next year and we remain positive on the stock market over the near (and longer)
term.
Please see pages nineteen and twenty for additional Fund performance
information.
- --------------------------------------------------------------------------------
18 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Growth and Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 18.53 $ 21.36 $ 0.08 $ 0.78 20.27%
- ----------------------------------------------------------------------------------------------------------
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)
==========================================================================================================
Total $ 2.73 $ 11.44
==========================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 18.53 $ 21.35 $ 0.03 $ 0.78 19.93%
- ----------------------------------------------------------------------------------------------------------
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 $ 0.49 $ 6.21
==========================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
------------------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 18.48 $ 21.16 $ 0.00 $ 0.78 19.03%
- ----------------------------------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
The Concert Investment Series 19
<PAGE>
- --------------------------------------------------------------------------------
Growth and Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-----------------------------------------
Class 1 Class A Class B
================================================================================
Year Ended 10/31/99 20.27% 19.93% 19.03%
- --------------------------------------------------------------------------------
Five Years Ended 10/31/99 20.19 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 10/31/99 14.68 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 10/31/99 12.85 20.66 19.75
================================================================================
With Sales Charges(2)
-----------------------------------------
Class 1 Class A Class B
================================================================================
Year Ended 10/31/99 10.05% 13.90% 14.03%
- --------------------------------------------------------------------------------
Five Years Ended 10/31/99 18.08 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 10/31/99 13.67 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 10/31/99 12.06 18.75 19.32
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (10/31/89 through 10/31/99) 293.46%
- --------------------------------------------------------------------------------
Class A (Inception* through 10/31/99) 82.46
- --------------------------------------------------------------------------------
Class B (Inception* through 10/31/99) 78.09
================================================================================
(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.
- --------------------------------------------------------------------------------
20 1999 Annual Report to Shareholders
<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+
- --------------------------------------------------------------------------------
October 1989--October 1999
[LINEGRAPH]
Growth & Income -- Class 1 Standard & Poor's 500 Index
Oct-89 9,152 10,000
Oct-90 8,618 9,252
Oct-91 11,292 12,343
Oct-92 12,517 13,571
Oct-93 14,286 15,594
Oct-94 14,359 16,197
Oct-95 17,582 20,474
Oct-96 21,200 25,406
Oct-97 26,998 33,562
Oct-98 29,941 40,948
Oct-99 36,009 51,456
+ Hypothetical illustration of $10,000 invested
in Class 1 shares on October 31, 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 October 31,
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* Investment Allocation as of October 31, 1999
- ------------------------------- --------------------------------------------
[BARGRAPH] [PIECHART]
6.5% Consumer Non-Durables 0.9% Convertible Preferred Stock
5.3% Consumer Services and Repurchase Agreement
17.0% Electronic Technology 99.1% Common Stock
4.0% Energy Minerals
17.4% Finance
10.0% Health Technology
6.0% Process Industries
5.7% Retail Trade
7.0% Technology Services
11.8% Utilities
9.3% Other
* As a percentage of total common stock.
- --------------------------------------------------------------------------------
The Concert Investment Series 21
<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 which Funds that
invest in domestic securities are not subject to, 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
The Fund's Class A shares advanced 70.22%, without sales charges, during the
year ended October 31, 1999, substantially outperforming the 23.03% gain of the
MSCI EAFE Index. Of course, past performance is not indicative of future
results. (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.)
In our view, the Fund's better performance versus its Index was due to the
Portfolio's Asian, Canadian and European growth stocks and due to the solid
performance of middle to smaller capitalization stocks during 1999 compared with
the prior two years. The strength of the Japanese yen also helped our return.
International stock markets performed well compared to the U.S. market during
the past twelve months as many of the negative influences of 1998 dissipated.
Prompt policy responses by central financial institutions stemmed many of the
anxieties of last year. Ample financial liquidity fueled genuine recovery in
many troubled economies and subsequent financial market rallies.
The composition of the Fund shifted over the past year, the result of an
increased commitment to Asian stocks as we took profits in select European
stocks consistent with our efforts to help minimize risk. As of October 31,
1999, the Fund's assets were allocated 52% in Europe, 34% in Asia and 12% in
Canada, Latin America, and other emerging markets.
For many years, large-capitalization, U.S. growth stocks have led global
financial markets. In recent months, however, international markets have assumed
leadership and provided strong absolute and relative returns. In our view, the
opportunities over the next several years, as measured by growth, structural
change and valuation, bode well for the performance of international stocks.
Please see pages twenty-three and twenty-four for additional Fund performance
information.
- --------------------------------------------------------------------------------
22 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
------------------------
Beginning End Income Total
Year Ended of Year of Year Dividends Returns(1)
===========================================================================================
<S> <C> <C> <C> <C>
10/31/99 $ 19.06 $ 32.57 $ 0.00 70.88%
- -------------------------------------------------------------------------------------------
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
Year Ended of Year of Year Dividends Returns(1)
===========================================================================================
<S> <C> <C> <C> <C>
10/31/99 $ 18.94 $ 32.24 $ 0.00 70.22%
- -------------------------------------------------------------------------------------------
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
Year Ended of Year of Year Dividends Returns(1)
===========================================================================================
<S> <C> <C> <C> <C>
10/31/99 $ 18.44 $ 31.16 $ 0.00 68.98%
- -------------------------------------------------------------------------------------------
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 (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-----------------------------------------
Class 1 Class A(2) Class B(2)
================================================================================
Year Ended 10/31/99 70.88% 70.22% 68.98%
- --------------------------------------------------------------------------------
Inception* through 10/31/99 24.61 23.99 23.08
================================================================================
With Sales Charges(3)
-----------------------------------------
Class 1 Class A(2) Class B(2)
================================================================================
Year Ended 10/31/99 56.36% 61.69% 63.98%
- --------------------------------------------------------------------------------
Inception* through 10/31/99 21.23 22.62 22.98
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (Inception* through 10/31/99) 103.56%
- --------------------------------------------------------------------------------
Class A (Inception* through 10/31/99)(2) 170.47
- --------------------------------------------------------------------------------
Class B (Inception* through 10/31/99)(2) 161.41
================================================================================
(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 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.
- --------------------------------------------------------------------------------
24 1999 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+
- --------------------------------------------------------------------------------
[CHART]
March 1995--October 1999
International Equity International Equity
Fund -- Class 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
10/31/99 25,567 26,041 15,694
+ 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 October 31, 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 class.
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.
[CHART] [CHART]
Diversification by Country* Investment Allocation as of October 31, 1999
- ----------------------------- --------------------------------------------
8.7% Canada 1.7% Repurchase Agreement
3.5% France 98.3% Common Stock
5.5% Germany
3.2% Hong Kong
28.3% Japan
3.9% Netherlands
5.0% Norway
3.9% Sweden
2.9% Switzerland
19.8% United Kingdom
15.3% Other
* As a percentage of total common stock.
- --------------------------------------------------------------------------------
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./1/
Portfolio Manager:
Lawrence B. Weissman, CFA
[PHOTO]
Commencement of Operations:
March 15, 1999
Investment experience:
15 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/2/
Since it began on March 15, 1999, the Fund's Class A shares have produced a
return of 5.35%, without sales charges, while the Standard & Poor's ("S&P")
MidCap 400 Index has risen 9.20%. (The S&P MidCap 400 Index is a widely
recognized index of 400 medium-capitalization stocks. The index is unmanaged and
not subject to the same management and trading expenses of a mutual fund.)
However, despite the heavy transaction costs of building a portfolio during a
market rally, the Fund's performance was competitive with the Standard & Poor's
500 Index ("S&P 500"), which gained 4.5% over the same period. (The S&P 500 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 include
reinvestment of dividends and capital gains. The index is unmanaged and not
subject to the same management and trading expenses of a mutual fund.)
We have progressively built what we believe is a portfolio of high-quality,
well-positioned companies at attractive prices. Conceptually, we seek to take
advantage of the tremendous price differences between large- and
middle-capitalization companies without taking on a lot of undue risk. To
accomplish this goal, we adhere to an investment approach that focuses on
companies with significant advantages and excellent competitive positions in the
marketplace. In our view, many of these companies are leaders in their
respective fields and are poised to take advantage of their leadership. We also
look for consistent growth, products with leadership positions, strong
management, positive cash flow and high return on equity as factors in
determining whether to invest in a prospective company.
Because large-capitalization stocks have outperformed middle-capitalization
stocks since the beginning of 1994, the relative valuations of
middle-capitalization companies are at the lowest they have been since 1990. At
the same time, earnings for mid-cap companies relative to large-cap companies
have started to accelerate. Historically, these factors have usually led to
outperformance of mid-cap stocks. Indeed, since the Fund began, mid-cap stocks
have outperformed large-cap stocks, and we expect this trend to continue in the
coming months.
In addition to strong fundamentals, we think that the other drivers of mid-cap
performance include increasing institutional ownership, greater coverage by Wall
Street analysts and higher merger and acquisition activity. In fact, we have
already seen these trends impact many of the stocks we own.
Currently, the Fund's largest concentrations are in computer software,
electronics and finance. We believe that the financial sector, which has been
under pressure
- ---------------
/1/ 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.
/2/ As of October 31, 1999, the companies cited in this section represented a
percentage of the Fund's total investments (i.e. Providian (1.9%), Capital
One (1.6%), Countrywide Credit (1.3%), Sepracor (2.9%), FactSet Research
(2.8%) and Electronic Arts (2.3%)).
- --------------------------------------------------------------------------------
26 1999 Annual Report to Shareholders
<PAGE>
pressure this year due to rising interest rates, provides the best risk and
return trade-off of any sector in the market today. As a result, we have been
increasing our weighting in this category. As interest rate fears begin to
subside, we believe our investment in market leaders such as Providian, Capital
One and Countrywide Credit are in an excellent position to benefit from renewed
investor interest./3/
One of our goals in the Fund is to build a portfolio that follows a
growth-oriented strategy with potentially lower risk. We look to buy leaders in
their respective industries. For example, Sepracor is the leader in drug
redevelopment, FactSet Research is the highest quality provider of online
integrated database services to the financial community and Electronic Arts is
the leading producer of entertainment software. In simple terms, we invest in
what we consider to be tomorrow's blue-chips, companies that have the best
chance of becoming high-quality, large-cap companies in the future.
Please see page twenty-eight for additional Fund performance information.
Thank you for investing with us. We look forward to helping you achieve your
financial goals in the coming years.
- ------------
/3/ Please note that the Fund's holdings are subject to change.
- --------------------------------------------------------------------------------
The Concert Investment Series 27
<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 Return(1)
=============================================================================================================
<S> <C> <C> <C> <C> <C>
Inception* -- 10/31/99 $11.44 $12.03 $0.00 $0.00 5.16%+
=============================================================================================================
</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 Return(1)
=============================================================================================================
<S> <C> <C> <C> <C> <C>
Inception* -- 10/31/99 $11.40 $12.01 $0.00 $0.00 5.35%+
=============================================================================================================
</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 Return(1)
=============================================================================================================
<S> <C> <C> <C> <C> <C>
Inception*-- 10/31/99 $11.44 $11.97 $0.00 $0.00 4.63%+
=============================================================================================================
It is the Fund's policy to distribute dividends and capital gains, if any, annually.
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Total Returns
- --------------------------------------------------------------------------------
Without Sales Charges(1)
----------------------------------------------
Class 1 Class A Class B
================================================================================
Inception* through 10/31/99+ 5.16% 5.35% 4.63%
================================================================================
With Sales Charges(2)
----------------------------------------------
Class 1 Class A Class B
================================================================================
Inception* through 10/31/99+ (3.76)% 0.08% (0.37)%
================================================================================
(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.
- --------------------------------------------------------------------------------
28 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Mid Cap Fund at a Glance (unaudited)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Class A Shares of the
Mid Cap Fund vs. Standard & Poor's MidCap 400 Index+
- --------------------------------------------------------------------------------
[GRAPH]
March 1999--October 1999
Mid Cap Fund\Class A Standard & Poor's\Mid Cap 400 Index
3/15/99 9,500 10,000
Mar-99 9,508 10,008
Apr-99 9,808 10,797
May-99 9,500 10,844
Jun-99 10,075 11,423
Jul-99 9,908 11,181
Aug-99 9,600 10,799
Sep-99 9,500 10,465
10/31/99 10,008 10,999
+ Hypothetical illustration of $10,000 invested in Class A shares on March
15, 1999 (inception date), assuming deduction of the maximum 5.00% sales
charge at the time of investment and the reinvestment of dividends and
capital gains, if any, at net asset value through October 31, 1999. The
Standard & Poor's MidCap 400 Index ("S&P MidCap 400 Index") is a widely
recognized index of 400 medium-capitalization stocks. Figures for the S&P
MidCap 400 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 A 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.
<TABLE>
<CAPTION>
Industry Diversification of Common Stock* Investment Allocation as of October 31, 1999
- ------------------------------------------- --------------------------------------------
<S> <C>
6.6% Broadcast Media [CHART]
4.6% Communications
14.0% Computer Software 18.1% Repurchase Agreement
9.1% Electronics - Components
8.7% Finance 81.9% Common Stock
7.4% Health Care - Drugs
3.4% Insurance
5.2% Oilfield Services
3.4% Services & Publishing
3.6% Telecommunications
34.0% Other
</TABLE>
* As a percentage of total common stock.
- --------------------------------------------------------------------------------
The Concert Investment Series 29
<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. /1/
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 year ended October 31, 1999, the Fund's Class A shares returned negative
4.58% without sales charges. In comparison, the unmanaged Lehman Brothers
Municipal Bond Index generated a total return of negative 1.77% during the same
period. (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.)
Over the twelve months covered by this report, the Fund distributed income
dividends totaling $0.65 and a capital gain of $0.23 per Class A share. Based on
a net asset value ("NAV") of $12.90, the annualized distribution rate for Class
A shares was 5.12%. /2/
As of October 31, 1999, the Fund's average weighted maturity was 17.9 years.
Moreover, at the end of October, approximately 92.7% 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 65.7% 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.)
In our opinion, the bond markets have recently been held back primarily due to
concerns about the strength of the U.S. economy and the potential for additional
monetary policy tightening by the Fed. Against this backdrop, yields on
long-term municipal bonds have moved up significantly in recent months. Indeed,
since the most recent peak in late June, the yield on current coupon long-term
U.S. Treasury bonds is up roughly 20 basis points. (A basis point is 1/100 of
one percentage point.) Over that same period, the yield on long-term municipals
was up more than 50 basis points. Taking a slightly longer view, long-term
municipal yields are up roughly 90 basis points from their recent lows in late
January.
- ------------
/1/ 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.
/2/ This annualized distribution rate assumes a current monthly income dividend
rate of $0.055 per share for twelve months.
- --------------------------------------------------------------------------------
30 1999 Annual Report to Shareholders
<PAGE>
While the Fed raised the federal funds rate at its November 16, 1999 Federal
Open Market Committee ("FOMC") meeting, we do not expect long-term rates to move
appreciably higher. Because institutional demand has virtually disappeared,
municipal bond yields have moved up relative to U.S. Treasury yields. With
long-term municipal yields close to 6% and the yield curve steep, extending our
maturities in the Fund may be a prudent strategy. (The yield curve is the
graphical depiction of the relationship between the yield on bonds of the same
credit quality but different maturities.)
Please see pages thirty-two and thirty-three for additional Fund performance
information. Thank you for investing in the Municipal Bond Fund.
- --------------------------------------------------------------------------------
The Concert Investment Series 31
<PAGE>
- --------------------------------------------------------------------------------
Municipal Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
=========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 14.41 $ 12.90 $ 0.69 $ 0.23 (4.34)%
- ---------------------------------------------------------------------------------------------------------
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
=========================================================================================================
Total $ 7.16 $ 0.44
=========================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
=========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 14.41 $ 12.90 $ 0.65 $ 0.23 (4.58)%
- ---------------------------------------------------------------------------------------------------------
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 $ 2.01 $ 0.40
=========================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
------------------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
=========================================================================================================
<S> <C> <C> <C> <C> <C>
10/31/99 $ 14.39 $ 12.88 $ 0.55 $ 0.23 (5.30)%
- ---------------------------------------------------------------------------------------------------------
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 $ 1.68 $ 0.40
=========================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends monthly and capital gains, if
any, annually.
- --------------------------------------------------------------------------------
32 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Municipal Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
-----------------------------------------
Class 1 Class A Class B
================================================================================
Year Ended 10/31/99 (4.34)% (4.58)% (5.30)%
- --------------------------------------------------------------------------------
Five Years Ended 10/31/99 5.79 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 10/31/99 6.26 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 10/31/99 6.57 3.37 2.57
================================================================================
With Sales Charges(2)
-----------------------------------------
Class 1 Class A Class B
================================================================================
Year Ended 10/31/99 (8.89)% (8.88)% (9.33)%
- --------------------------------------------------------------------------------
Five Years Ended 10/31/99 4.77 N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 10/31/99 5.75 N/A N/A
- --------------------------------------------------------------------------------
Inception* through 10/31/99 6.12 1.89 2.02
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
- --------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (10/31/89 through 10/31/99) 83.60%
- --------------------------------------------------------------------------------
Class A (Inception* through 10/31/99) 11.19
- --------------------------------------------------------------------------------
Class B (Inception* through 10/31/99) 8.48
================================================================================
(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.
- --------------------------------------------------------------------------------
The Concert Investment Series 33
<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+
- --------------------------------------------------------------------------------
October 1989--October 1999
Municipal Bond Fund Lehman Brothers
-- Class 1 Municipal Bond Index
Oct-89 9,523 10,000
Oct-90 9,977 10,844
Oct-91 11,153 12,163
Oct-92 11,998 13,183
Oct-93 13,659 15,040
Oct-94 13,197 14,386
Oct-95 14,876 16,521
Oct-96 15,783 17,463
Oct-97 17,051 18,947
Oct-98 18,278 20,467
Oct-99 17,484 20,105
+ Hypothetical illustration of $10,000 invested in Class 1 shares on October
31, 1989, assuming deduction of the maximum 4.75% sales charge at the time
of investment and the reinvestment of dividends and capital gains, if any,
at net asset value through October 31, 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* Summary of Investments by Combined Ratings
- --------------------------- -----------------------------------------------
[BARCHART]
3.8% California Standard Percentage of
6.8% Colorado Moody's & Poor's Total Investments
3.8% Illinois -----------------------------------------------
5% Massachusetts
4.3% Missouri Aaa AAA 65.7%
3.2% New Jersey Aa AA 8.8
13.9% New York A A 10.9
8.1% Ohio Baa BBB 7.3
9.9% Pennsylvania NR NR 7.3
17.1% Texas -----
24.1% Other 100.0%
=====
* As a percentage of total investments
- --------------------------------------------------------------------------------
34 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments October 31, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 94.2%
Auto & Transportation -- 1.9%
25,800 Airborne Freight Corp. $ 554,700
21,700 CNF Transportation, Inc. 717,456
14,900 Federal Mogul Corp.+ 374,362
53,200 Gentex Corp.+* 914,375
30,300 Hayes Lemmerz International, Inc.* 655,238
35,400 Mesaba Holdings, Inc.* 407,100
18,300 SkyWest, Inc. 454,069
36,000 Superior Industries International, Inc. 960,750
10,500 US Airways Group, Inc.* 294,000
- --------------------------------------------------------------------------------
5,332,050
- --------------------------------------------------------------------------------
Consumer Discretionary -- 17.8%
28,700 Action Performance Co., Inc.+* 583,866
40,200 Apollo Group, Inc., Class A Shares+* 1,057,762
34,400 Barnes & Noble, Inc.* 715,950
31,900 bebe Stores, Inc.+* 841,362
26,600 Blyth Industries, Inc.* 666,662
102,700 The Bombay Co., Inc.* 423,637
37,000 Borders Group, Inc.+* 481,000
36,400 Brinker International, Inc.* 848,575
27,500 CD Radio, Inc.+* 701,250
51,900 CEC Entertainment, Inc.* 1,664,044
18,800 Central Newspapers, Inc., Class A Shares 807,225
31,600 Checkfree Holdings Corp.+* 1,181,050
48,400 Church & Dwight Co., Inc. 1,261,425
18,400 Claire's Stores, Inc. 324,300
36,200 Complete Business Solutions, Inc.* 524,900
110,600 CompUSA Inc.* 629,037
17,300 Consolidated Graphics, Inc.* 346,000
28,400 Cox Radio, Inc., Class A Shares* 1,988,000
37,500 Day Runner, Inc.* 276,562
51,000 Dial Corp. 1,192,125
18,400 Dollar Tree Stores, Inc.* 801,550
19,500 Emmis Communications Corp., Class A Shares+* 1,406,438
42,300 Ethan Allen Interiors Inc. 1,504,294
88,800 Family Dollar Stores, Inc. 1,831,500
38,300 Family Golf Centers, Inc.+* 62,237
52,000 Furniture Brands International Inc.* 1,007,500
71,700 Group Maintenance America Corp.* 690,113
21,800 Houghton Mifflin Co. 923,775
62,600 Interim Services Inc.* 1,028,987
52,100 International Game Technology* 970,363
56,200 Jack in the Box Inc.* 1,352,313
43,500 Jones Apparel Group, Inc.* 1,375,688
40,000 Jostens, Inc. 845,000
44,600 Launch Media Inc.* 485,025
34,400 Linens `n Things, Inc.* 1,367,400
74,700 Mandalay Resort Group* 1,391,288
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 35
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
SHARES SECURITY VALUE
================================================================================
Consumer Discretionary -- 17.8% (continued)
57,600 The Men's Wearhouse, Inc.* $ 1,263,600
35,800 Metamor Worldwide, Inc.* 675,725
40,400 Navigant Consulting, Inc.* 1,153,925
19,700 Outback Steakhouse, Inc.* 453,100
54,887 Pacific Sunwear of California, Inc.* 1,656,901
27,800 Performance Food Group Co.* 754,075
38,100 Pre-Paid Legal Services Inc.* 923,925
27,450 Regis Corp. 509,541
46,700 Rent-Way, Inc.* 776,387
45,800 Ross Stores, Inc. 944,625
91,000 Samsonite Corp.+* 546,000
49,000 Shaw Industries, Inc. 756,438
19,300 Sotheby's Holdings, Inc., Class A Shares 553,669
27,788 Starwood Hotels & Resorts Worldwide, Inc. 637,387
26,100 Tupperware Corp. 517,106
27,100 United Stationers, Inc.* 691,050
37,400 Valassis Communications, Inc.* 1,608,200
33,600 Williams Sonoma, Inc.* 1,806,000
- --------------------------------------------------------------------------------
49,785,857
- --------------------------------------------------------------------------------
Consumer Staples -- 0.6%
37,300 Earthgrains Co. 850,906
41,300 Smithfield Foods, Inc.* 939,575
- --------------------------------------------------------------------------------
1,790,481
- --------------------------------------------------------------------------------
Finance -- 9.4%
48,600 Affiliated Managers Group, Inc.* 1,300,050
106,500 AmeriCredit Corp.* 1,850,437
12,300 Astoria Financial Corp. 442,800
18,700 Commerce Bancorp, Inc. 837,994
34,000 Community First Bankshares, Inc. 647,062
15,200 Cullen Frost Bankers, Inc. 438,900
18,700 Dain Rauscher Corp. 1,003,956
60,400 Doral Financial Corp. 773,875
29,500 Eaton Vance Corp. 1,008,531
27,910 Fidelity National Financial, Inc. 437,838
17,800 The FINOVA Group, Inc. 784,313
27,400 FPIC Insurance Group Inc.* 434,975
14,200 Greater Bay Bancorp 521,850
28,300 GreenPoint Financial Corp. 806,550
43,700 HCC Insurance Holdings, Inc. 491,625
36,500 HSB Group, Inc. 1,396,125
24,500 Hudson United Bancorp+ 770,219
29,300 Metris Cos. Inc. 1,009,019
24,700 National Commerce Bancorporation 617,500
53,600 North Fork Bancorporation, Inc. 1,108,850
36,500 Oriental Financial Group Inc. 825,813
29,600 Peoples Heritage Financial Group, Inc. 562,400
27,100 Premier Bancshares, Inc. 477,637
29,700 Queens County Bancorp Inc. 933,694
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
36 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
SHARES SECURITY VALUE
================================================================================
Finance -- 9.4% (continued)
23,400 Radian Group Inc. $ 1,235,812
18,600 S1 Corp.* 747,488
17,300 Silicon Valley Bancshares* 564,413
16,400 Southwest Securities Group, Inc. 390,525
44,500 Sovereign Bancorp, Inc.+ 392,156
28,150 Triangle Bancorp, Inc. 647,450
47,400 United Bankshares Inc. 1,167,225
25,400 Zions Bancorporation 1,497,013
- --------------------------------------------------------------------------------
26,124,095
- --------------------------------------------------------------------------------
Health Care -- 13.9%
18,600 Affymetrix, Inc.* 1,639,125
66,800 AmeriPath, Inc.* 494,737
24,500 Andrx Corp.+* 1,169,875
48,600 Bergen Brunswig Corp., Class A Shares 346,275
45,200 Biomet, Inc. 1,361,650
34,500 CareMatrix Corp.* 69,000
38,000 Cooper Cos., Inc. 950,000
106,500 Covance Inc.* 1,031,719
41,200 Enzon, Inc.+* 1,207,675
25,900 Forest Laboratories, Inc., Class A Shares* 1,188,163
19,700 Genzyme Corp.+* 753,525
3,490 Genzyme Surgical Products* 18,759
29,600 Gilead Sciences Inc.* 1,870,350
63,200 Hanger Orthopedic Group Inc.* 778,150
24,200 Human Genome Sciences, Inc.* 2,114,475
46,400 ICOS Corp.* 1,331,100
19,700 IDEC Pharmaceuticals Corp.* 2,288,894
85,300 InfoCure Corp.* 1,343,475
37,250 Jones Pharma Inc. 1,154,750
84,800 Ligand Pharmaceuticals Corp., Class B Shares* 694,300
13,600 Manor Care Inc.* 214,200
46,750 Medicis Pharmaceuticals Corp., Class A Shares* 1,425,875
38,400 MedQuist Inc.* 1,228,800
31,600 Millennium Pharmaceuticals, Inc.* 2,215,950
35,400 Mylan Laboratories Inc. 634,988
27,800 Ocular Sciences, Inc.* 510,825
59,400 Omnicare, Inc. 549,450
33,700 Pharmaceutical Product Development, Inc.* 339,106
60,125 PSS World Medical, Inc.* 465,969
32,000 Quintiles Transnational Corp.* 594,000
34,050 Res-Care, Inc.+* 495,853
42,700 Roberts Pharmaceutical Corp.* 1,377,075
13,200 Sepracor, Inc.+* 1,098,075
196,900 SICOR Inc.* 935,275
32,900 STERIS Corp.* 437,981
39,300 Sunrise Assisted Living, Inc.* 432,300
46,600 Sybron International Corp.+* 1,109,663
32,100 Transkaryotic Therapies, Inc.* 1,492,650
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 37
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
SHARES SECURITY VALUE
================================================================================
Health Care -- 13.9% (continued)
55,400 United Payors & United Providers, Inc.* $ 931,413
13,600 Universal Health Services, Inc., Class B Shares* 399,500
- --------------------------------------------------------------------------------
38,694,945
- --------------------------------------------------------------------------------
Materials & Processing -- 4.1%
104,900 Airgas, Inc.* 996,550
29,500 Centex Construction Products, Inc. 1,049,094
20,000 Cousins Properties, Inc. 633,750
21,400 Federal Realty Investment Trust 389,213
27,700 Mueller Industries, Inc.* 884,669
31,200 NL Industries, Inc. 360,750
20,900 NVR, Inc.* 856,900
23,900 Reckson Associates Realty Corp. 442,150
17,800 The Rouse Co. 393,825
47,100 Spartech Corp. 1,348,238
57,250 Stillwater Mining Co.* 1,152,156
29,000 Tredegar Corp. 636,187
16,000 USG Corp. 793,000
29,100 Vornado Realty Trust 922,106
56,500 Wausau-Mosinee Paper Corp. 713,313
- --------------------------------------------------------------------------------
11,571,901
- --------------------------------------------------------------------------------
Other Energy -- 2.4%
42,600 Barrett Resources Corp.* 1,429,762
36,100 Basin Exploration, Inc.* 593,394
14,900 Devon Energy Corp.+ 579,238
43,700 Friede Goldman Halter, Inc.+* 404,225
26,164 Ocean Energy Inc.* 240,382
37,000 Plains Resources Inc.* 635,938
44,700 R&B Falcon Corp.* 555,956
47,300 Rowan Cos., Inc.* 736,106
41,500 Weatherford International, Inc.* 1,405,812
- --------------------------------------------------------------------------------
6,580,813
- --------------------------------------------------------------------------------
Producer Durables -- 4.9%
38,200 Allied Waste Industries, Inc.* 401,100
23,600 Briggs & Stratton Corp. 1,379,125
22,200 C&D Technology, Inc. 713,175
21,200 Carlisle Cos. Inc. 704,900
44,200 CommScope Inc.* 1,762,475
29,300 Crane Co. 598,819
62,100 Howmet International Inc.* 915,975
17,700 Jacobs Engineering Group, Inc.* 628,350
40,500 Kellstrom Industries, Inc.* 334,125
39,200 The Kroll-O'Gara Co.* 622,300
31,500 Lennar Corp. 517,781
37,700 The Manitowoc Co., Inc. 1,126,288
49,700 Mettler-Toledo International Inc.* 1,481,681
12,600 Millipore Corp. 401,625
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
38 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
SHARES SECURITY VALUE
================================================================================
Producer Durables -- 4.9% (continued)
17,000 Nordson Corp. $ 753,312
36,100 PerkinElmer, Inc. 1,473,331
- --------------------------------------------------------------------------------
13,814,362
- --------------------------------------------------------------------------------
Technology -- 36.2%
25,500 24/7 Media, Inc.* 1,101,281
27,700 Adobe Systems Inc. 1,937,269
30,000 ADTRAN, Inc.* 1,113,750
3,000 Allegiance Telcom, Inc.* 207,000
67,400 American Management Systems, Inc.* 1,743,975
53,200 American Xtal Technology, Inc.+* 688,275
92,500 Amkor Technology, Inc.+* 1,867,344
32,100 Anixter International Inc.* 670,087
80,100 AnswerThink Consulting Group, Inc.+* 1,321,650
71,600 Aspen Technology, Inc.* 912,900
28,400 Autodesk, Inc. 532,500
36,200 AVT Corp.* 1,212,700
20,000 Black Box Corp.* 1,015,000
302,000 Brightpoint, Inc.* 2,368,813
35,800 BroadVision, Inc.* 2,613,400
47,300 C-Cube Microsystems Inc.* 2,104,850
41,500 CACI International Inc., Class A Shares* 889,656
26,700 Carrier Access Corp.* 1,319,981
15,122 Ciber, Inc.+* 246,678
49,000 Cognizant Tech Solutions Corp.* 2,250,938
25,300 Concentric Network Corp.* 648,313
14,500 Concord Communications, Inc.* 753,094
27,200 Covad Communications Group* 1,305,600
18,500 CSK Auto Corp.* 330,688
33,900 CTS Corp. 1,917,469
79,700 Cypress Semiconductor Corp.+* 2,037,331
27,600 Diamond Technology Partners, Inc., Class A Shares+* 1,783,650
40,900 The DII Group, Inc.* 1,472,400
13,500 DST Systems, Inc.* 859,781
39,500 Dycom Industries, Inc.* 1,286,219
48,700 E*TRADE Group, Inc.+* 1,159,669
24,400 Electro Scientific Industries, Inc.* 1,317,600
21,100 Electronic Arts, Inc.* 1,705,144
43,000 Etec Systems, Inc.* 1,642,063
46,500 Fiserv, Inc.* 1,488,000
42,200 Genesys Telecommunication Laboratories, Inc.* 2,073,075
31,400 Go2Net, Inc.+* 2,209,775
31,200 Hadco Corp.* 1,146,600
10,400 hi/fn, Inc.+* 377,650
21,945 Hyperion Solutions Corp.* 534,909
47,800 IMRglobal Corp.* 489,950
155,100 Informix Corp.* 1,182,638
6,800 Infoseek Corp.* 215,475
43,300 Intelligroup, Inc.+* 433,000
45,800 Inter-Tel, Inc. 727,075
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 39
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
SHARES SECURITY VALUE
================================================================================
Technology -- 36.2% (continued)
69,300 InterVoice-Brite, Inc.* $ 857,588
47,000 ISS Group, Inc.* 1,791,875
28,500 Lam Research Corp.* 2,406,469
28,700 MasTec, Inc.* 939,925
48,800 Mastech Corp.* 835,700
112,400 Mentor Graphics Corp.* 906,225
53,800 National Computer Systems, Inc. 2,034,313
17,600 Network Appliance, Inc.+* 1,302,400
46,400 Network Associates, Inc.* 849,700
5,300 Network Solutions, Inc., Class A Shares* 628,050
47,500 NVDIA Corp.+* 1,050,938
32,200 Omnipoint Corp.+* 2,660,525
82,700 PeopleSoft, Inc.* 1,240,500
37,200 Policy Management Systems, Corp.* 713,775
22,900 Powerwave Technologies, Inc.* 1,489,931
19,100 QRS Corp.* 1,062,437
29,000 Quantum Corp. - DLT & Storage Systems* 447,687
14,500 Quantum Corp. - Hard Disk Drive* 88,812
37,900 Rational Software Corp.+* 1,620,225
63,100 Read-Rite Corp.+* 248,456
49,800 RWD Technologies, Inc.* 404,625
31,200 Sanchez Computer Associates, Inc.+* 686,400
16,340 Sanmina Corp.+* 1,471,621
36,400 Sawtek Inc.* 1,492,400
23,700 SCI Systems, Inc.* 1,170,187
18,900 SCM Microsystems, Inc.+* 893,025
11,500 SEI Investments Co. 1,120,891
94,700 SpeedFam-IPEC, Inc.* 1,047,619
43,600 Sterling Software, Inc.* 956,475
61,000 Structural Dynamics Research Corp.* 602,375
46,300 SunGard Data Systems, Inc.+* 1,131,456
41,100 Superior TeleCom Inc. 639,619
49,300 Sykes Enterprises, Inc.+* 1,522,137
60,000 USWeb Corp.* 2,325,000
22,200 VerticalNet Inc.+* 1,243,200
22,900 Visual Networks, Inc.* 953,212
99,000 VTEL Corp.* 303,187
60,800 Wind River Systems Inc.* 1,238,800
12,200 WorldGate Communications, Inc.* 260,775
27,800 Xircom, Inc.* 1,402,162
30,300 Zebra Technologies Corp.* 1,647,562
- --------------------------------------------------------------------------------
100,903,474
- --------------------------------------------------------------------------------
Utilities -- 3.0%
37,250 CenturyTel Inc. 1,506,296
33,000 Global TeleSystems Group, Inc.* 789,937
31,000 Intermedia Communications Inc.+* 806,000
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
40 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Emerging Growth Fund
SHARES SECURITY VALUE
================================================================================
Utilities -- 3.0% (continued)
48,200 ITC DeltaCom, Inc.* $ 1,156,800
124,400 Paging Network, Inc.* 116,625
53,000 TALK.com, Inc.* 844,687
18,300 US LEC Corp., Class A Shares* 506,681
34,000 Western Wireless Corp., Class A Shares* 1,797,750
21,400 WinStar Communications, Inc.* 830,587
- --------------------------------------------------------------------------------
8,355,363
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $263,360,870) 262,953,341
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
U.S. TREASURY BILLS -- 0.3%
$ 725,000 U.S. Treasury Bills, due 12/16/99 (Cost -- $720,732) 720,732
================================================================================
SUB-TOTAL INVESTMENTS
(Cost-- $264,081,602) 263,674,073
================================================================================
REPURCHASE AGREEMENT -- 5.5%
15,425,000 Chase Securities Inc., 5.100% dated 10/29/99,
due 11/1/99; Proceeds at maturity -- $15,431,556;
(Fully collateralized by U.S. Treasury
Notes, 11.250% due 2/15/15; Market value --
$15,736,825) (Cost -- $15,425,000) 15,425,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $279,506,602**) $279,099,073
================================================================================
+ All or a portion of this security is on loan (See Note 12).
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 41
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Government Fund
FACE
AMOUNT SECURITY VALUE
================================================================================
U.S. TREASURY OBLIGATIONS -- 13.7%
$54,945,000 U.S. Treasury Strip, zero coupon bond
to yield 6.426% due 11/15/09+
(Cost -- $29,013,144) $ 28,602,169
================================================================================
U.S. GOVERNMENT AGENCIES -- 86.3%
Federal Home Loan Mortgage Corporation (FHLMC):
387 7.000% due 9/1/24 380
123,403 8.000% due 11/1/24* 126,025
Federal National Mortgage Association (FNMA):
11,191 8.000% due 8/1/25 11,408
9,015,278 7.000% due 8/1/29* 8,857,511
2,320,599 Dwarf, 7.500% due 8/1/12* 2,349,606
1,190,000 Global Bond, 6.350% due 11/23/01 1,189,976
50,200,000 Zero coupon bond to yield 7.145% due 6/1/17 14,972,652
Government National Mortgage Association (GNMA):
30,626,323 6.500% due 10/15/28* 29,276,621
13,850,000 8.000% due 2/15/29++ 14,152,900
28,381,253 6.000% due 4/15/29* 26,350,007
52,036,827 7.000% due 7/15/29* 51,061,136
32,328,341 7.500% due 9/15/29* 32,429,206
1,407 Government National Mortgage Association I,
10.000% due 3/15/16 1,531
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost -- $183,202,686) 180,778,959
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $212,215,830**) $209,381,128
================================================================================
+ Security is segregated for "to-be-announced" trades.
* Date shown represents the last in range of maturity dates of
mortgage certificates owned.
++ Security is traded on a "to-be-announced" basis (See Note 13).
** Aggregate cost for Federal income tax purposes is substantially the
same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
42 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Growth Fund
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 94.2%
Aerospace/Defense -- 0.5%
425,000 The Boeing Co. $ 19,576,562
436,000 The Kroll-O'Gara Co.* 6,921,500
- --------------------------------------------------------------------------------
26,498,062
- --------------------------------------------------------------------------------
Consumer Distribution -- 5.5%
800,000 Dayton Hudson Corp. 51,700,000
531,000 The Kroger Co.* 11,051,438
1,100,000 Lowe's Cos., Inc. 60,500,000
630,000 Safeway Inc.*+ 22,246,875
1,400,000 The TJX Cos., Inc. 37,975,000
1,800,000 Wal-Mart Stores, Inc.+ 102,037,500
- --------------------------------------------------------------------------------
285,510,813
- --------------------------------------------------------------------------------
Consumer Non-Durables -- 4.0%
850,000 The Coca-Cola Co.+ 50,150,000
700,000 Colgate-Palmolive Co. 42,350,000
349,000 Keebler Foods Co.* 11,146,187
800,000 PepsiCo, Inc. 27,750,000
549,800 The Procter & Gamble Co. 57,660,275
277,678 Unilever NV 18,517,652
- --------------------------------------------------------------------------------
207,574,114
- --------------------------------------------------------------------------------
Consumer Services -- 9.5%
321,827 AMFM Inc.* 22,527,890
1,685,000 CBS Corp. 82,249,063
3,044,408 Cendant Corp.* 50,232,732
694,389 Clear Channel Communications, Inc.*+ 55,811,516
955,485 Cox Communications, Inc.* 43,414,850
850,000 MediaOne Group, Inc.* 60,403,125
1,747,700 Outdoor Systems, Inc.* 74,058,787
1,200,000 Time Warner Inc.+ 83,625,000
750,000 The Walt Disney Co. 19,781,250
- --------------------------------------------------------------------------------
492,104,213
- --------------------------------------------------------------------------------
Electrical Products -- 0.5%
270,000 Honeywell Inc. 28,468,125
- --------------------------------------------------------------------------------
Energy -- 5.6%
599,600 Anadarko Petroleum Corp. 18,475,175
300,000 Atlantic Richfield Co. 27,956,250
460,000 BP Amoco PLC, Sponsored ADR+ 26,565,000
735,000 Burlington Resources Inc.+ 25,633,125
260,000 Chevron Corp.+ 23,741,250
1,225,000 Conoco Inc., Class A Shares+ 33,610,938
800,000 Exxon Corp. 59,250,000
1,000,000 Haliburton Co. 37,687,500
370,000 Mobil Corp. 35,705,000
- --------------------------------------------------------------------------------
288,624,238
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 43
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Growth Fund
SHARES SECURITY VALUE
================================================================================
Finance -- 17.0%
1,071,025 Ace Ltd. $ 20,818,048
1,500,300 Ambac Financial Group, Inc. 89,642,925
881,250 American International Group Inc. 90,713,672
1,083,900 Annuity & Life Re Holdings, Ltd. 25,471,650
680 Berkshire Hathaway Inc., Class A Shares* 43,452,000
1,697,700 Capital One Financial Corp.+ 89,978,100
1,180,000 The Chase Manhattan Corp. 103,102,500
1,659,200 Countrywide Credit Industries, Inc. 56,309,100
1,000,000 Fannie Mae 70,750,000
3,348,900 IndyMac Mortgage Holdings, Inc. 46,675,294
760,000 Merrill Lynch & Co., Inc.+ 59,660,000
260,000 Morgan Stanley Dean Witter & Co.+ 28,681,250
735,000 Providian Financial Corp.+ 80,115,000
580,000 Wells Fargo Co.+ 27,767,500
954,800 XL Capital Ltd. 51,260,825
- --------------------------------------------------------------------------------
884,397,864
- --------------------------------------------------------------------------------
Health Care -- 14.4%
747,200 Affymetrix, Inc.* 65,847,000
580,000 American Home Products Corp. 30,305,000
1,000,000 Bristol-Myers Squibb Co. 76,812,500
54,086 Cardinal Health, Inc. 2,332,459
450,400 Elan Corp. PLC, Sponsored ADR*+ 11,597,800
300,300 Genentech, Inc.*+ 43,768,725
300,000 Johnson & Johnson 31,425,000
1,902,000 Merck & Co., Inc. 151,327,875
1,395,000 Monsanto Co.+ 53,707,500
1,800,000 Pfizer Inc. 71,100,000
1,921,500 Sepracor Inc.* 159,844,781
600,000 Warner-Lambert Co. 47,887,500
- --------------------------------------------------------------------------------
745,956,140
- --------------------------------------------------------------------------------
Producer Manufacturing -- 5.4%
500,000 Applied Materials, Inc.* 44,906,250
540,000 Corning Inc. 42,457,500
800,000 General Electric Co. 108,450,000
2,136,000 Tyco International Ltd. 85,306,500
- --------------------------------------------------------------------------------
281,120,250
- --------------------------------------------------------------------------------
Technology -- 24.1%
17,000 Akamai Technologies, Inc.* 2,468,188
900,000 America Online, Inc.* 116,718,750
2,020,000 Cisco Systems, Inc.* 149,480,000
565,800 Citrix Systems, Inc.* 36,281,925
600,000 Dell Computer Corp.*+ 24,075,000
950,000 EMC Corp.*+ 69,350,000
1,526,000 Intel Corp.+ 118,169,625
840,000 International Business Machines Corp.+ 82,635,000
939,600 Lexmark International Group, Inc., Class A Shares* 73,347,525
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
44 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Growth Fund
SHARES SECURITY VALUE
================================================================================
Technology -- 24.1% (continued)
395,300 Linear Technology Corp.+ $ 27,646,294
910,000 Lucent Technologies, Inc.+ 58,467,500
1,780,000 Microsoft Corp.* 164,761,250
425,000 Nokia Oyj, Sponsored ADR+ 49,114,062
1,341,000 Oracle Corp.*+ 63,781,312
92,000 QUALCOMM Inc.*+ 20,493,000
430,000 Sprint Corp. (PCS Group)*+ 35,663,125
794,000 Sun Microsystems, Inc.*+ 84,015,125
9,810 Sycamore Networks, Inc.*+ 2,109,150
595,000 Xilinx, Inc.* 46,781,875
141,872 Yahoo! Inc.*+ 25,403,955
- --------------------------------------------------------------------------------
1,250,762,661
- --------------------------------------------------------------------------------
Transportation -- 0.2%
797,800 Knightsbridge Tankers Ltd. 12,266,175
- --------------------------------------------------------------------------------
Utilities -- 7.5%
1,344,200 The AES Corp.*+ 75,863,288
584,300 AT&T Corp. 27,316,025
600,000 Bell Atlantic Corp. 38,962,500
363,900 CenturyTel, Inc. 14,715,206
1,140,533 MCI WorldCom, Inc.* 97,871,988
1,166,100 Qwest Communications International Inc.*+ 41,979,600
1,177,000 SBC Communications Inc. 59,953,437
420,000 Sprint Corp.+ 31,211,250
- --------------------------------------------------------------------------------
387,873,294
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost-- $3,059,378,254) 4,891,155,949
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
U.S. GOVERNMENT OBLIGATION -- 2.0%
$85,000,000 U.S. Treasury Bond, 8.750% due 5/15/17
(Cost -- $99,086,484) 104,782,050
================================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $3,158,464,738) 4,995,937,999
================================================================================
REPURCHASE AGREEMENT -- 3.8%
198,202,000 Chase Securities Inc., 5.100% dated 10/29/99,
due 11/1/99; Proceeds at maturity --
$198,286,236; (Fully collateralized by U.S.
Treasury Bonds, 8.500% to 11.250% due
2/15/15 to 2/15/20;
Market value-- $202,167,813) (Cost-- $198,202,000) 198,202,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost-- $3,356,666,738**) $5,194,139,999
================================================================================
* Non-income producing security.
+ All or a portion of this security is on loan (See Note 12).
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 45
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Growth and Income Fund
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 99.1%
- --------------------------------------------------------------------------------
Commercial Services -- 0.9%
280,000 SUPERVALU Inc. $ 5,880,000
170,000 W.W. Grainger, Inc.+ 7,203,750
- --------------------------------------------------------------------------------
13,083,750
- --------------------------------------------------------------------------------
Consumer Durables -- 1.7%
300,000 Ford Motor Co. 16,462,500
130,000 General Motors Corp.+ 9,132,500
- --------------------------------------------------------------------------------
25,595,000
- --------------------------------------------------------------------------------
Consumer Non-Durables -- 6.4%
185,000 The Coca-Cola Co.+ 10,915,000
364,200 ConAgra, Inc. 9,491,963
140,000 General Mills, Inc.* 12,206,250
65,000 The Gillette Co.+ 2,352,187
235,000 Kimberly-Clark Corp. 14,834,375
385,000 PepsiCo, Inc. 13,354,687
200,000 The Procter & Gamble Co.+ 20,975,000
115,000 The Quaker Oats Co. 8,050,000
150,000 V.F. Corp. 4,509,375
- --------------------------------------------------------------------------------
96,688,837
- --------------------------------------------------------------------------------
Consumer Services -- 5.2%
310,000 Comcast Corp., Class A Shares 13,058,750
235,000 Cox Communications, Inc.*+ 10,677,813
184,800 H&R Block, Inc. 7,865,550
150,000 Knight-Ridder, Inc.+ 9,525,000
130,000 McDonald's Corp.+ 5,362,500
230,000 The New York Times Co. 9,257,500
220,000 The Reader's Digest Association, Inc., Class A Shares+ 7,095,000
285,000 Viacom Inc., Class B Shares* 12,753,750
120,000 The Walt Disney Co. 3,165,000
- --------------------------------------------------------------------------------
78,760,863
- --------------------------------------------------------------------------------
Electronic Technology -- 16.9%
420,000 Cisco Systems, Inc.* 31,080,000
505,000 Dell Computer Corp.* 20,263,125
235,000 General Dynamics Corp.+ 13,027,812
240,000 Hewlett-Packard Co. 17,775,000
600,000 Intel Corp. 46,462,500
280,000 International Business Machines Corp. 27,545,000
130,000 Lexmark International Group, Inc.* 10,148,125
335,000 Lucent Technologies Inc. 21,523,750
160,000 Motorola, Inc.+ 15,590,000
220,000 SCI Systems, Inc.* 10,862,500
360,000 Seagate Technology, Inc.*+ 10,597,500
265,000 Telefonaktiebolaget LM Ericsson ADR 11,328,750
350,000 Unisys Corp.* 8,487,500
170,000 United Technologies Corp. 10,285,000
- --------------------------------------------------------------------------------
254,976,562
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
46 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Growth and Income Fund
SHARES SECURITY VALUE
================================================================================
Energy Minerals -- 3.9%
350,000 Conoco Inc., Class A Shares+ $ 9,603,125
246,500 Exxon Corp. 18,256,406
190,000 Mobil Corp. 18,335,000
450,000 USX-Marathon Group 13,106,250
- --------------------------------------------------------------------------------
59,300,781
- --------------------------------------------------------------------------------
Finance -- 17.3%
345,000 A.G. Edwards, Inc. 10,371,563
350,000 The Allstate Corp.+ 10,062,500
140,000 American International Group, Inc. 14,411,250
340,000 AXA Financial, Inc. 10,901,250
345,000 Bank of America Corp. 22,209,375
250,000 The Bear Stearns Cos. Inc. 10,656,250
225,000 The Chase Manhattan Corp. 19,659,375
145,000 CIGNA Corp. 10,838,750
350,000 Conseco, Inc. 8,509,375
105,000 Fannie Mae 7,428,750
200,000 First Union Corp. 8,537,500
266,490 Fleet Boston Corp. 11,625,626
115,000 The Goldman Sachs Group, Inc.+ 8,165,000
370,000 GreenPoint Financial Corp. 10,545,000
200,000 The Hartford Financial Services Group, Inc. 10,362,500
95,000 J.P. Morgan & Co. Inc. 12,433,125
350,000 KeyCorp 9,778,125
185,000 Morgan Stanley Dean Witter & Co. 20,407,812
205,000 PNC Bank Corp. 12,223,125
250,001 Starwood Hotels & Resorts Worldwide, Inc. 5,734,398
325,000 UnionBanCal Corp. 14,117,187
38,300 UnumProvident Corp. 1,261,506
300,000 Washington Mutual, Inc. 10,781,250
- --------------------------------------------------------------------------------
261,020,592
- --------------------------------------------------------------------------------
Health Services -- 1.0%
335,000 Columbia/HCA Healthcare Corp. 8,081,875
125,000 Wellpoint Health Networks Inc.*+ 7,250,000
- --------------------------------------------------------------------------------
15,331,875
- --------------------------------------------------------------------------------
Health Technology -- 9.9%
150,000 Abbott Laboratories+ 6,056,250
60,000 American Home Products Corp. 3,135,000
155,000 Amgen Inc.* 12,361,250
60,000 Baxter International Inc. 3,892,500
140,000 Biogen, Inc.* 10,377,500
225,000 Bristol-Myers Squibb Co. 17,282,813
200,000 Eli Lilly & Co. 13,775,000
200,000 Johnson & Johnson 20,950,000
345,000 Merck & Co., Inc.+ 27,449,063
382,000 Mylan Laboratories Inc. 6,852,125
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 47
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Growth and Income Fund
SHARES SECURITY VALUE
================================================================================
Health Technology -- 9.9% (continued)
420,000 Pfizer Inc. $ 16,590,000
65,000 Schering-Plough Corp. 3,217,500
255,000 Watson Pharmaceuticals, Inc.* 8,096,250
- --------------------------------------------------------------------------------
150,035,251
- --------------------------------------------------------------------------------
Industrial Services -- 0.8%
310,000 Fluor Corp.+ 12,361,250
- --------------------------------------------------------------------------------
Non-Energy Minerals -- 1.0%
245,000 Alcoa Inc.+ 14,883,750
- --------------------------------------------------------------------------------
Process Industries -- 6.0%
290,000 Air Products and Chemicals, Inc. 7,975,000
110,000 The Dow Chemical Co.+ 13,007,500
425,000 General Electric Co. 57,614,062
300,000 Rohm and Haas Co. 11,475,000
- --------------------------------------------------------------------------------
90,071,562
- --------------------------------------------------------------------------------
Producer Manufacturing -- 2.9%
248,000 AlliedSignal Inc. 14,120,500
230,000 Caterpillar Inc. 12,707,500
200,000 Ingersoll-Rand Co. 10,450,000
120,000 Johnson Controls, Inc. 7,290,000
- --------------------------------------------------------------------------------
44,568,000
- --------------------------------------------------------------------------------
Retail Trade -- 5.6%
105,000 Best Buy Co., Inc.* 5,834,062
250,000 Federated Department Stores, Inc.*+ 10,671,875
230,000 The Gap, Inc. 8,538,750
200,000 The Home Depot, Inc.+ 15,100,000
290,000 The Limited, Inc.+ 11,926,250
345,000 The TJX Cos., Inc. 9,358,125
41,428 Too Inc.* 662,857
400,000 Wal-Mart Stores, Inc.+ 22,675,000
- --------------------------------------------------------------------------------
84,766,919
- --------------------------------------------------------------------------------
Technology Services -- 7.0%
165,000 America Online, Inc.* 21,398,438
270,000 Automatic Data Processing, Inc. 13,010,625
265,000 BMC Software, Inc.* 17,009,688
260,000 Electronic Data Systems Corp. 15,210,000
420,000 Microsoft Corp.*+ 38,876,250
- --------------------------------------------------------------------------------
105,505,001
- --------------------------------------------------------------------------------
Transportation -- 0.9%
125,000 AMR Corp.* 7,937,500
360,000 Southwest Airlines Co. 6,052,500
- --------------------------------------------------------------------------------
13,990,000
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
48 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Growth and Income Fund
SHARES SECURITY VALUE
================================================================================
Utilities -- 11.7%
375,000 AT&T Corp.+ $ 17,531,250
40,000 Bell Atlantic Corp.+ 2,597,500
325,000 BellSouth Corp. 14,625,000
330,000 The Coastal Corp. 13,901,250
180,000 DTE Energy Co.+ 5,973,750
160,000 Duke Energy Corp. 9,040,000
278,000 Edison International 8,235,750
240,000 GTE Corp. 18,000,000
305,000 MCI WorldCom, Inc.* 26,172,813
475,000 Niagara Mohawk Holdings Inc.* 7,540,625
235,000 PECO Energy Co. 8,974,063
707,440 SBC Communications Inc. 36,035,225
135,000 US West, Inc. 8,243,437
- --------------------------------------------------------------------------------
176,870,663
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost-- $1,198,689,888) 1,497,810,656
================================================================================
CONVERTIBLE PREFERRED STOCK -- 0.5%
78,500 Microsoft Corp., 2.750%, Series A++(Cost-- $6,270,188) 7,962,844
================================================================================
SUB-TOTAL INVESTMENTS
(Cost-- $1,204,960,076) 1,505,773,500
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 0.4%
$5,959,000 Chase Securities Inc., 5.100% dated 10/29/99,
due 11/1/99; Proceeds at maturity -- $5,961,533;
(Fully collateralized by U.S. Treasury Notes, 8.500%
due 2/15/20; Market value -- $6,082,313)
(Cost -- $5,959,000) 5,959,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost-- $1,210,919,076**) $1,511,732,500
================================================================================
+ All or a portion of this security is on loan (See Note 12).
* Non-incoming producing security.
++ Security is convertible into 61,309 shares of common stock.
** 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 (continued) October 31, 1999
- --------------------------------------------------------------------------------
International Equity Fund
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 98.3%
Australia -- 0.3%
86,900 Coca-Cola Amatil Ltd. $ 268,046
- --------------------------------------------------------------------------------
Canada -- 8.6%
40,000 Celestica Inc.* 2,202,733
29,000 JDS Uniphase Corp.* 4,839,375
- --------------------------------------------------------------------------------
7,042,108
- --------------------------------------------------------------------------------
Denmark -- 1.5%
15,000 William Demant A/S 1,219,598
- --------------------------------------------------------------------------------
Finland -- 2.8%
20,000 Nokia Oyj 2,310,011
- --------------------------------------------------------------------------------
France -- 3.4%
8,000 Axa 1,127,625
12,000 Equant NV* 1,166,726
5,000 Sidel SA 499,275
- --------------------------------------------------------------------------------
2,793,626
- --------------------------------------------------------------------------------
Germany -- 5.4%
8,000 Intershop Communications AG* 983,834
12,000 Mannesmann AG 1,850,365
6,000 Marschollek, Lautenschlaeger und Partner AG 1,260,064
20,000 Stinnes AG 378,398
- --------------------------------------------------------------------------------
4,472,661
- --------------------------------------------------------------------------------
Hong Kong -- 3.2%
109,404 HSBC Holdings PLC 1,313,074
130,000 Hutchinson Whampoa Ltd. 1,305,103
- --------------------------------------------------------------------------------
2,618,177
- --------------------------------------------------------------------------------
Ireland -- 2.2%
40,000 Elan Corp. PLC 1,030,000
75,685 Irish Continental Group PLC 791,551
- --------------------------------------------------------------------------------
1,821,551
- --------------------------------------------------------------------------------
Israel -- 1.4%
40,000 Amdocs Ltd.* 1,111,240
- --------------------------------------------------------------------------------
Italy -- 1.3%
175,000 Telecom Italia Mobile S.p.A. 1,095,383
- --------------------------------------------------------------------------------
Japan -- 27.8%
40,000 Fujitsu Ltd. 1,203,526
175,000 KIKKOMAN CORP. 1,437,093
30,000 Matsushita Communication Industrial Co., Ltd. 5,036,412
140 NTT Mobile Communications Networks, Inc. 3,715,983
8,000 SOFTBANK CORP. 3,319,279
10,000 SONY CORP. 1,558,068
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
50 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
International Equity Fund
SHARES SECURITY VALUE
================================================================================
Japan -- 27.8% (continued)
60,000 Terumo Corp. $ 1,822,537
24,000 Trend Micro Inc.* 4,760,445
- --------------------------------------------------------------------------------
22,853,343
- --------------------------------------------------------------------------------
Mexico -- 1.2%
521,939 Grupo Bimbo SA de CV 954,743
- --------------------------------------------------------------------------------
Netherlands -- 3.8%
75,000 ING Groep NV Warrants, Expire 3/15/01* 1,215,603
25,000 United Pan-Europe Communications NV 1,920,894
- --------------------------------------------------------------------------------
3,136,497
- --------------------------------------------------------------------------------
Norway -- 4.9%
6,250 Fast Search & Transfer ASA* 131,460
20,000 Opticom ASA* 892,333
60,000 Tandberg Television ASA* 711,317
60,000 Tomra Systems ASA 2,294,572
- --------------------------------------------------------------------------------
4,029,682
- --------------------------------------------------------------------------------
Singapore -- 2.9%
70,000 Singapore Press Holdings Ltd. 1,199,062
130,000 Venture Manufacturing Ltd. 1,156,389
- --------------------------------------------------------------------------------
2,355,451
- --------------------------------------------------------------------------------
South Africa -- 0.9%
25,000 Anglo American Platinum Corp. 720,098
- --------------------------------------------------------------------------------
Spain -- 0.6%
50,000 Indra Sistemas SA 525,027
- --------------------------------------------------------------------------------
Sweden -- 3.8%
10,000 Icon Medialab International AB* 530,456
60,000 Linne Group AB* 1,066,980
25,000 Net Insight AB* 804,181
50,000 Securitas AB, Class B Shares 740,453
350 TeleLarm Care AB* 4,185
- --------------------------------------------------------------------------------
3,146,255
- --------------------------------------------------------------------------------
Switzerland -- 2.9%
80,000 Mettler-Toledo International Inc.* 2,385,000
- --------------------------------------------------------------------------------
United Kingdom -- 19.4%
50,000 Baltimore Tech 1,538,348
100,000 Capita Group PLC 1,327,492
107,000 Capital Telecom Group PLC* 3,199,009
70,000 Energis PLC 2,230,646
85,000 Galen Holdings PLC 777,584
25,000 Guardian IT PLC 272,800
100,000 Hays PLC 1,142,070
125,959 Misys PLC 1,053,069
60,000 Serco Group PLC 1,718,026
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 51
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
International Equity Fund
SHARES SECURITY VALUE
================================================================================
United Kingdom -- 19.4% (continued)
300,000 Telewest Communications PLC* $ 1,274,983
27,272 Telewest Communications PLC, Rights* 24,165
30,000 Vodafone AirTouch PLC* 1,432,163
- --------------------------------------------------------------------------------
15,990,355
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $44,870,611) 80,848,852
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 1.7%
$1,404,000 CS First Boston Corp., 5.150% dated 10/29/99,
due 11/1/99; Proceeds at maturity --
$1,404,603; (Fully collateralized by
U.S. Treasury Bills due 12/31/99;
Market value -- $1,432,855)
(Cost -- $1,404,000) 1,404,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $46,274,611**) $82,252,852
================================================================================
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
52 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Mid Cap Fund
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 81.9%
Airlines -- 0.8%
13,400 Southwest Airlines Co. $ 225,288
- --------------------------------------------------------------------------------
Automobiles -- 1.9%
9,000 Harley-Davidson, Inc. 533,812
- --------------------------------------------------------------------------------
Banking -- 1.8%
3,400 Commerce Bancorp, Inc. 152,362
7,400 First Tennessee National Corp. 251,600
5,100 North Fork Bancorporation, Inc. 105,506
- --------------------------------------------------------------------------------
509,468
- --------------------------------------------------------------------------------
Broadcast Media -- 5.4%
4,700 Cablevision Systems Corp., Class A Shares* 317,544
8,400 Entercom Communications Corp.* 418,425
27,700 Imax Corp.* 574,775
7,610 Spanish Broadcasting System, Inc.* 202,616
600 World Wrestling Federation Entertainment, Inc.* 14,475
- --------------------------------------------------------------------------------
1,527,835
- --------------------------------------------------------------------------------
Building Materials -- 1.9%
5,900 Ecolab Inc. 199,494
8,100 Vulcan Materials Co. 334,631
- --------------------------------------------------------------------------------
534,125
- --------------------------------------------------------------------------------
Communications - Equipment -- 3.8%
5,400 ADC Telecommunications, Inc.* 257,512
5,900 L-3 Communications Holdings, Inc.* 248,906
13,200 Valassis Communications, Inc. 567,600
- --------------------------------------------------------------------------------
1,074,018
- --------------------------------------------------------------------------------
Computer Software -- 11.5%
1,200 Advent Software, Inc.* 72,150
4,600 Citrix Systems, Inc.* 294,975
2,800 Covad Communications Group, Inc.* 134,400
7,900 Electronic Arts Inc.*+ 638,419
12,650 Fiserv, Inc.* 404,800
5,900 Intuit Inc.* 171,838
200 Juniper Networks, Inc.* 55,125
5,100 Mercury Interactive Corp.* 413,737
1,500 Project Software & Development, Inc.* 72,187
5,000 VERITAS Software Corp.* 539,375
5,500 Xilinx, Inc.* 432,437
- --------------------------------------------------------------------------------
3,229,443
- --------------------------------------------------------------------------------
Consumer Products -- 0.4%
4,700 The Dial Corp. 109,863
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 53
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Mid Cap Fund
SHARES SECURITY VALUE
================================================================================
Electronics - Components -- 7.4%
9,900 The AES Corp.++ $ 558,731
5,300 Applied Micro Circuits Corp.* 412,406
5,800 Lexmark International Group, Inc., Class A Shares* 452,762
4,900 Maxim Integrated Products, Inc.* 386,794
8,500 Molex Inc., Class A Shares 280,500
- --------------------------------------------------------------------------------
2,091,193
- --------------------------------------------------------------------------------
Electronics - Semiconductors -- 2.3%
5,800 Linear Technology Corp. 405,638
6,500 Teradyne, Inc.* 250,250
- --------------------------------------------------------------------------------
655,888
- --------------------------------------------------------------------------------
Entertainment -- 1.6%
15,400 Premier Parks Inc. 445,637
- --------------------------------------------------------------------------------
Finance -- 7.2%
10,400 Ambac Financial Group, Inc.++ 621,400
8,400 Capital One Financial Corp. 445,200
10,900 Countrywide Credit Industries, Inc. 369,919
2,400 E*TRADE Group, Inc.* 57,150
4,825 Providian Financial Corp. 525,925
- --------------------------------------------------------------------------------
2,019,594
- --------------------------------------------------------------------------------
Food Distributors -- 2.2%
13,800 Keebler Foods Co.*+ 440,737
9,800 The Pepsi Bottling Group, Inc. 178,238
- --------------------------------------------------------------------------------
618,975
- --------------------------------------------------------------------------------
Health Care - Drugs -- 6.1%
4,400 Affymetrix, Inc.* 387,750
9,000 Elan Corp. PLC, Sponsored ADR* 231,750
1,900 Genentech Inc.* 276,925
9,900 Sepracor Inc.*+ 823,556
- --------------------------------------------------------------------------------
1,719,981
- --------------------------------------------------------------------------------
Health Care - Managed -- 0.6%
2,900 Wellpoint Health Networks Inc.* 168,200
- --------------------------------------------------------------------------------
Household Furniture & Apparel -- 0.9%
7,300 Bed Bath & Beyond Inc.* 243,181
- --------------------------------------------------------------------------------
Insurance -- 2.7%
23,365 Annuity and Life Re Holdings, Ltd.++ 549,078
4,240 XL Capital Ltd., Class A Shares 227,635
- --------------------------------------------------------------------------------
776,713
- --------------------------------------------------------------------------------
Internet Content -- 1.2%
90 Akamai Technologies, Inc.* 13,067
800 CMGI Inc.* 87,550
350 eBay Inc.* 47,294
300 Silknet Software, Inc.* 24,000
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
54 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Mid Cap Fund
SHARES SECURITY VALUE
================================================================================
Internet Content -- 1.2% (continued)
1,700 VerticalNet, Inc.* $ 95,200
1,000 Xoom.com, Inc.* 62,500
- --------------------------------------------------------------------------------
329,611
- --------------------------------------------------------------------------------
Machinery -- 1.5%
5,100 SPX Corp. 432,225
- --------------------------------------------------------------------------------
Manufacturing -- 2.0%
5,300 Danaher Corp. 256,056
6,000 Waters Corp.* 318,750
- --------------------------------------------------------------------------------
574,806
- --------------------------------------------------------------------------------
Metal Processors -- 1.5%
13,400 Mueller Industries, Inc.* 427,963
- --------------------------------------------------------------------------------
Oilfield Services -- 4.2%
6,400 Anadarko Petroleum Corp. 197,200
4,700 BJ Services Co.* 161,269
4,700 Cooper Cameron Corp.* 181,831
7,900 Diamond Offshore Drilling, Inc. 250,825
4,300 EOG Resources, Inc. 89,494
10,500 Newfield Exploration Co.* 309,094
- --------------------------------------------------------------------------------
1,189,713
- --------------------------------------------------------------------------------
Paper -- 1.1%
5,700 Bowater Inc. 299,250
- --------------------------------------------------------------------------------
Real Estate Investment Trusts -- 1.0%
20,100 IndyMac Mortgage Holdings, Inc. 280,144
- --------------------------------------------------------------------------------
Retail - Apparel -- 1.2%
4,200 Abercrombie & Fitch Co., Class A Shares* 114,450
8,200 The Children's Place Retail Stores, Inc.* 213,712
- --------------------------------------------------------------------------------
328,162
- --------------------------------------------------------------------------------
Retail - Drug Stores -- 0.6%
6,600 Duane Reade Inc.* 177,375
- --------------------------------------------------------------------------------
Retail - Specialty -- 1.2%
5,500 Best Buy Co., Inc.* 305,594
700 eToys Inc.* 41,825
- --------------------------------------------------------------------------------
347,419
- --------------------------------------------------------------------------------
Services & Publishing - Finance -- 2.8%
11,700 FactSet Research Systems Inc.+ 777,319
- --------------------------------------------------------------------------------
Telecommunications -- 2.9%
11,100 CenturyTel, Inc. 448,856
2,200 COLT Telecom Group PLC, Sponsored ADR* 260,700
4,500 Time Warner Telecom Inc., Class A Shares* 113,344
- --------------------------------------------------------------------------------
822,900
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 55
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Mid Cap Fund
SHARES SECURITY VALUE
================================================================================
Transport -- 1.7%
4,000 Kansas City Southern Industries, Inc. $ 189,750
18,100 Knightsbridge Tankers Ltd. 278,288
- --------------------------------------------------------------------------------
468,038
- --------------------------------------------------------------------------------
Utilities -- 0.5%
5,300 The Montana Power Co. 150,719
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost-- $21,505,101) 23,088,858
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 18.1%
$5,104,000 Chase Securities Inc., 5.100% dated 10/29/99,
due 11/1/99; Proceeds at maturity --
$5,106,169; (Fully collateralized by U.S.
Treasury Bonds, 8.500% due 2/15/20;
Market value -- $5,209,875)
(Cost -- $5,104,000) 5,104,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $26,609,101**) $28,192,858
================================================================================
* Non-income producing security.
+ Security serves as collateral for open futures contracts commitments.
++ Security has been segregated by the custodian for open futures
contracts commitments.
** Aggregate cost for Federal income tax purposes is substantially the
same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
56 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal Bond Fund
FACE
AMOUNT RATING(a) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Arizona-- 0.6%
$ 400,000 A Maricopa County, AZ IDA, Multi-Family Housing Revenue,
(Laguna Port Apartments Project), 6.500% due 7/1/09 $ 411,500
225,000 NR Scottsdale, AZ IDA Revenue, First Mortgage Westminster Village,
Series A, 8.250% due 6/1/15 242,719
- -----------------------------------------------------------------------------------------------------------------------------------
654,219
- -----------------------------------------------------------------------------------------------------------------------------------
California -- 3.8%
2,000,000 A2* California Health Facilities Financial Authority Revenue,
Cedars-Sinai Medical Center, Series A, 6.250% due 12/1/34 1,962,500
365,000 NR Del Mar, CA Race Track Authority Revenue, 6.000% due 8/15/01 370,475
Orange County, CA Recovery, Series A, MBIA-Insured:
1,000,000 AAA 6.000% due 6/1/09 1,070,000
1,000,000 AAA COP, 6.000% due 7/1/08 1,078,750
- -----------------------------------------------------------------------------------------------------------------------------------
4,481,725
- -----------------------------------------------------------------------------------------------------------------------------------
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(b) 1,085,000
1,000,000 Aaa* Call @ 103, 7.000% due 8/31/26(b) 1,135,000
245,000 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 12/1/12 257,863
255,000 AAA Arvada, CO Sales & Use Tax Revenue, Refunding & Improvement,
FGIC-Insured, 6.250% due 12/1/12 266,156
Berry Creek Metropolitan District, CO Refunding & Improvement:
150,000 NR 8.250% due 12/1/11 157,500
100,000 NR Pre-Refunded-- Escrowed with U.S. government securities to 12/1/01
Call @ 101, 8.250% due 12/1/11(c) 108,750
1,000,000 A Colorado Health Facilities Authority Revenue, Series B, 5.350% due 8/1/15 926,250
1,000,000 AAA E-470 Public Highway Authority, CO, MBIA-Insured, Series A, 5.000% due 9/1/17 896,250
400,000 NR Edgewater, CO Redevelopment Authority Tax Increment Revenue, Edgewater
Redevelopment Project, (Pre-Refunded-- Escrowed with U.S. government
securities to 12/1/03 Call @ 101), 6.750% due 12/1/08(c) 435,000
Highlands Ranch Metropolitan District:
1,000,000 AAA FSA-Insured, 6.500% due 6/15/10 1,090,000
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(c) 549,375
1,000,000 AAA Larimer County, CO COP, MBIA-Insured, 5.650% due 12/1/16 990,000
- -----------------------------------------------------------------------------------------------------------------------------------
7,897,144
- -----------------------------------------------------------------------------------------------------------------------------------
Connecticut -- 0.9%
Mashantucket Western Pequot Tribe, Connecticut Special Revenue,
Sub-144A, Series A:
505,000 BBB- 6.500% due 9/1/05(d) 537,194
495,000 AAA Escrowed to maturity with U.S. government securities,
6.500% due 9/1/05(d) 539,550
- -----------------------------------------------------------------------------------------------------------------------------------
1,076,744
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 57
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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 $ 271,875
- ------------------------------------------------------------------------------------------------------------------------------------
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 6/1/10 519,795
- ------------------------------------------------------------------------------------------------------------------------------------
Florida -- 2.8%
375,000 A+ Broward County, FL Resource Recovery Revenue, Broward Waste Energy,
7.950% due 12/1/08 387,079
1,000,000 AAA Florida State Correctional Privatization Community, COP, AMBAC-Insured,
5.000% due 8/1/17 891,250
2,500,000 AAA Orange County, FL Tourist Development Tax Revenue, Series A,
AMBAC-Insured, 4.750% due 10/1/24 2,050,000
- ------------------------------------------------------------------------------------------------------------------------------------
3,328,329
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia -- 1.4%
2,000,000 AAA Atlanta, GA Water & Wastewater Revenue, Series A, FGIC-Insured,
5.000% due 11/1/38 1,647,500
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois -- 3.8%
500,000 AA Chicago, IL Metropolitan Water Reclamation District, (Partially Escrowed
to maturity with U.S. government securities), 7.000% due 1/1/11 563,125
500,000 AAA Chicago, IL Wastewater Transmission Revenue, FGIC-Insured,
(Pre-Refunded -- Escrowed with U.S. government securities to 1/1/03
Call @ 102), 6.300% due 1/1/12(b) 534,375
500,000 AAA Cook County, IL Community College, COP, FGIC-Insured, 8.750% due 1/1/07 607,500
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 11/1/10 524,595
250,000 NR Crestwood, IL Tax Increment Revenue, 7.250% due 12/1/08 256,250
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(b) 530,625
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(c) 257,655
Illinois Health Facilities Authority Revenue:
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(c) 270,625
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(c) 322,875
500,000 AA Northwestern Memorial Hospital, 6.750% due 8/15/11 522,500
67,000 AAA Series A, MBIA-Insured, 7.900% due 8/15/03 67,167
40,000 AAA Series A, MBIA-Insured, (Escrowed to maturity with U.S. government
securities), 7.900% due 8/15/03 43,900
- ------------------------------------------------------------------------------------------------------------------------------------
4,501,192
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana -- 1.0%
100,000 NR Carmel, IN Retirement Housing Revenue, (Beverly Enterprises Indiana
Project), 8.750% due 12/1/08 107,250
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 7/15/09 521,825
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
58 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Indiana -- 1.0% (continued)
$ 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 $ 533,750
- ------------------------------------------------------------------------------------------------------------------------------------
1,162,825
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa -- 0.9%
1,000,000 AAA Des Moines, IA Parking Facility Revenue, FGIC-Insured, 7.250% due 7/1/15 1,023,440
- ------------------------------------------------------------------------------------------------------------------------------------
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 12/1/18 818,750
190,000 NR Louisiana Public Facilities Authority Revenue, Industrial Development,
Beverly Enterprise, 8.250% due 9/1/08 201,400
- ------------------------------------------------------------------------------------------------------------------------------------
1,020,150
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts -- 5.0%
500,000 Aaa* Boston, MA Boston City Hospital, Series A, FHA-Insured, 7.625% due 2/15/21 520,480
1,000,000 AAA Holyoke, MA GO, Series B, FSA-Insured, 6.000% due 6/15/07 1,063,750
5,000 BBB+ Massachusetts Municipal Wholesale Electric Co., Power Supply System,
Series A, 8.750% mandatory tender 1/1/05 due 7/1/18 5,812
1,000,000 Aaa* Massachusetts State College Building Authority Project Revenue,
MBIA-Insured, 5.375% due 5/1/39 892,500
1,000,000 AAA Massachusetts State HFA Housing Development, Series B, MBIA-Insured,
5.300% due 12/1/17 943,750
240,000 Aa3* Massachusetts State HFA Housing Revenue, Single-Family, Series 31,
6.450% due 12/1/16 245,700
150,000 NR Massachusetts State Industrial Finance Agency, Industrial Revenue,
Beverly Enterprises, 8.000% due 5/1/02 155,250
2,500,000 AAA Massachusetts State Turnpike Authority, Metropolitan Highway System
Revenue, Subseries A, AMBAC-Insured, 4.750% due 1/1/34 1,978,125
- ------------------------------------------------------------------------------------------------------------------------------------
5,805,367
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan -- 2.0%
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(c) 2,177,500
200,000 AAA Huron Valley, MI School District, FGIC-Insured, (Pre-Refunded -- Escrowed
with U.S. government securities to 5/1/01 Call @ 102), 7.100% due 5/1/08 212,250
- ------------------------------------------------------------------------------------------------------------------------------------
2,389,750
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota -- 0.9%
150,000 NR Minneapolis, MN Health Care Facilities Revenue, (Ebenezer Social Project),
Series A, 7.000% due 7/1/12 143,813
1,000,000 AAA Minneapolis & St. Paul, MN Metropolitan Airport Revenue, Series A,
FGIC-Insured, 5.125% due 1/1/25 878,750
- ------------------------------------------------------------------------------------------------------------------------------------
1,022,563
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 59
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mississippi -- 0.4%
$ 500,000 NR Ridgeland, MS Urban Renewal Revenue, (The Orchard Limited Project),
Series A, 7.75% due 12/1/15 $ 521,250
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri -- 4.3%
2,750,000 AAA Kansas City, MO Municipal Assistance, MBIA-Insured, 5.000% due 4/15/20 2,416,562
Missouri State Health & Educational Facilities Authority Revenue:
500,000 BBB+ Heartland Health System Project, 6.875% due 11/15/04 524,375
500,000 BBB+ Lake of the Ozarks General Hospital, 6.000% due 2/15/06 500,000
1,615,000 AAA St. Charles County, MO IDA, Westchester Village Apartments,
FNMA-Collateralized, 6.050% due 2/1/17 1,629,131
- ------------------------------------------------------------------------------------------------------------------------------------
5,070,068
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada -- 1.8%
2,000,000 AAA Clark County, NV IDR, (Nevada Power Co. Project), AMBAC-Insured,
7.200% due 10/1/22 2,157,500
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire -- 0.8%
New Hampshire Higher Educational & Health Facilities Authority Revenue:
370,000 NR First Mortgage, Odd Fellows Home, 9.000% due 6/1/14 412,550
520,000 BBB New London Hospital Association Project, 7.500% due 6/1/05 557,050
- ------------------------------------------------------------------------------------------------------------------------------------
969,600
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey -- 3.2%
1,500,000 Aa2* Mercer County, NJ Improvement Authority Revenue, zero coupon due 4/1/11 808,125
1,000,000 AAA New Jersey Building Authority State Building Revenue, MBIA-Insured,
5.000% due 6/15/18 887,500
880,000 NR New Jersey EDA, Holt Hauling & Warehousing, Series G,
8.400% due 12/15/15 920,700
1,000,000 AAA New Jersey State Turnpike Authority, Series C, MBIA-Insured,
6.500% due 1/1/16 1,082,500
- ------------------------------------------------------------------------------------------------------------------------------------
3,698,825
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico -- 0.9%
1,000,000 A+ Farmington, NM PCR, Southern California Edison Co., Series A,
7.200% due 4/1/21(b) 1,050,000
- ------------------------------------------------------------------------------------------------------------------------------------
New York -- 13.9%
1,000,000 A- Long Island Power Authority, NY Electric System Revenue, Series A,
5.500% due 12/1/29 896,250
Metropolitan Transportation Authority, NY Transportation Facilities Revenue:
2,000,000 AAA Series B, FGIC-Insured, 4.750% due 7/1/26 1,630,000
5,000,000 AAA Series C, FSA-Insured, 4.750% due 7/1/16 4,325,000
350,000 NR New York, NY City Industrial Development Agency Civic Facility Revenue,
(Marymount Manhattan College Project), 7.000% due 7/1/23 359,625
500,000 Aaa* New York, NY Municipal Water Financing Authority, Water & Sewer System
Revenue, Series C, (Pre-Refunded -- Escrowed with U.S. government
securities to 6/15/01 Call @ 101.5), 7.750% due 6/15/20 534,375
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 1,108,750
New York State Dormitory Authority Revenue, City University System:
1,000,000 AAA Series A, FGIC-Insured, 5.000% due 7/1/16 902,500
345,000 A- Series C, 6.000% due 7/1/16 344,569
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
60 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York -- 13.9% (continued)
$ 3,000,000 A New York State Dormitory Authority Revenue, Mental Health Services
Facilities Improvement, Series B, 5.375% due 2/15/26 $ 2,662,500
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 5/15/12 779,782
3,000,000 AAA New York State Thruway Authority, Highway & Bridge Fund, Series B,
FGIC-Insured, 5.000% due 4/1/17 2,670,000
- ------------------------------------------------------------------------------------------------------------------------------------
16,213,351
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina -- 0.4%
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 1/1/24 419,375
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio -- 8.1%
1,840,000 Aaa* Brecksville Broadview Heights Ohio City School District, FGIC-Insured,
6.500% due 12/1/16(b) 1,966,500
500,000 NR 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(c) 555,000
500,000 NR Cuyahoga County, OH Health Care Facilities Revenue, Judson Retirement
Community, Series A, 7.000% due 11/15/10 506,875
1,000,000 AAA Cuyahoga County, OH Hospitals Revenue, University Hospitals Health
System, AMBAC-Insured, 5.500% due 1/15/30 923,750
660,000 Aa* Delaware County, OH Health Care Facilities Revenue, FHA-Insured,
6.550% due 2/1/35 698,775
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 1,050,000
2,000,000 AAA Lucas County, OH Hospitals Revenue, Promedia Healthcare Obligation Group,
AMBAC-Insured, 5.375% due 11/15/29 1,820,000
1,000,000 BBB Miami County, OH Hospital Facilities Refunding & Improvement,
Upper Valley Medical Center, Series A, 6.000% due 5/15/06 1,000,000
1,000,000 BBB- Ohio State Water Development Authority, Pollution Control Facilities
Revenue, (Ohio Edison Co. Project), 5.950% due 5/15/29 937,500
- ------------------------------------------------------------------------------------------------------------------------------------
9,458,400
- ------------------------------------------------------------------------------------------------------------------------------------
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 6/1/17 551,875
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon -- 0.8%
1,000,000 AA Clackamas County, OR Hospital Facility Authority Revenue,
Legacy Health System, 5.250% due 2/15/17 927,500
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania -- 9.9%
1,000,000 Baa1* Allegheny County, PA Hospital Development Authority Revenue,
(St. Francis Medical Center Project), 5.750% due 5/15/17 895,000
2,000,000 Aaa* Harrisburg, PA, Series D, AMBAC-Insured, zero coupon due 3/15/18 667,500
500,000 NR Lebanon County, PA Health Facilities Authority, (United Church of Christ
Homes Project), 6.750% due 10/1/10 500,825
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 61
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Pennsylvania -- 9.9% (continued)
$ 265,000 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 $ 300,775
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(c) 104,235
2,425,000 AAA Pennsylvania State Higher Educational Facilities Authority Revenue,
Thomas Jefferson University, AMBAC-Insured, 5.000% due 7/1/19 2,103,688
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(c) 537,500
1,400,000 AA Philadelphia, PA IDA, (Girard Estates Facilities Leasing Project),
5.000% due 5/15/27 1,219,750
3,400,000 AAA Pittsburgh, PA Water & Sewer Authority, Water & Sewer System Revenue,
Subseries C, FSA-Insured, 5.000% due 9/1/17 2,996,250
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 7/1/20 271,563
500,000 A Shenandoah Valley School District PA, Series B, zero coupon due 2/1/12 250,625
2,000,000 AA- St. Mary Hospital, Bucks County, Catholic Health Initiatives, Series A,
5.000% due 12/1/18 1,710,000
- ------------------------------------------------------------------------------------------------------------------------------------
11,557,711
- ------------------------------------------------------------------------------------------------------------------------------------
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), 6.625% due 8/1/19 536,250
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina -- 1.9%
2,500,000 Aaa* South Carolina Transportation Infrastructure Revenue, Series A,
AMBAC-Insured, 5.250% due 10/1/21 2,284,375
- ------------------------------------------------------------------------------------------------------------------------------------
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 1,003,750
- ------------------------------------------------------------------------------------------------------------------------------------
Texas -- 17.1%
1,000,000 AAA Aledo, Texas Independent School District, PSFG, 5.000% due 2/15/29 846,250
500,000 Aaa* Arlington, TX Independent School District, PSFG, 5.000% due 2/15/24 430,000
685,000 A Austin, TX Housing Finance Corp., Multi-Family Housing Revenue,
(Stassney Woods Apartments Projects), 6.500% due 10/1/10 702,981
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(c) 553,125
1,000,000 Baa1* Brazos River Authority, TX PCR, Utilities Electric Co., Series C,
5.550% due 6/1/30(e) 857,500
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 9/1/17 520,140
500,000 A Ector County, TX Hospital District Revenue, 7.125% due 4/15/02 523,125
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
62 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Texas -- 17.1% (continued)
Frenship, TX ISD, PSFG
$ 500,000 Aaa* 5.500% due 2/15/03 $ 510,625
500,000 Aaa* 5.500% due 2/15/04 509,375
Harris County, TX Health Facilities Development Corp.:
Memorial Hospital System Project, (Pre-Refunded--Escrowed with
U.S. givernment securities to various call dated and prices),
7.125% due 6/1/15(c) 266,875
2,000,000 AA Texas Children's Hospital Project, Series A, 5.250% due 10/1/29 1,695,000
1,250,000 AAA Thermal Utility Revenue Project, Series A, AMBAC-Insured,
7.250% due 2/15/15 1,286,250
2,000,000 AAA Houston, TX ISD, Series A, PSFG, 4.750% due 2/15/22 1,662,500
2,000,000 AA- Houston, TX Refunded & Public Improvement, Series A, 4.750% due 3/1/17 1,705,000
250,000 NR Rusk County, TX Health Facilities Corp. Hospital Revenue, (Henderson
Memorial Hospital Project), 7.750% due 4/1/13 256,250
Tarrant County, TX Health Facilities Development Corp. Hospital Revenue:
250,000 BBB 7.000% due 5/15/28 261,250
250,000 BBB Pre-Refunded-- Escrowed with U.S. government securities to 5/15/03
Call @ 102, 7.000% due 5/15/28(c) 273,750
1,370,000 AAA Temple, TX Junior College District Housing System & User Fee Revenue,
MBIA-Insured, 5.375% due 7/1/21 1,270,675
Texas General Services Community Partnership Interests,
(Office Building & Land Acquisition Project):
130,000 A- 7.000% due 8/1/14 136,825
330,000 A- 7.000% due 8/1/24 346,913
175,000 Aa2* Texas Housing Agency Mortgage Revenue Single-Family, Series A,
7.150% due 9/1/12 181,781
Texas Water Development Board Revenue, Series B:
2,000,000 AAA 5.125% due 7/15/18 1,800,000
2,500,000 AAA 5.000% due 7/15/19 2,181,250
1,120,000 AAA West Texas Municipal Power Agency Revenue, MBIA-Insured,
5.000% due 2/15/18 978,600
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(c) 283,125
- ------------------------------------------------------------------------------------------------------------------------------------
20,039,165
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia -- 1.5%
200,000 AAA Fairfax County, VA Redevelopment & Housing Authority Multi-Family Housing
Revenue, FHA-Insured, Paul Spring, 5.900% due 6/15/17 202,000
1,000,000 BBB Peninsula Ports Authority, VA Coal Terminal Revenue, (Dominion Terminal
Association Project), 7.375% due 6/1/20 1,053,750
500,000 AAA Prince William County, VA IDA Revenue, Series A, GNMA-Collateralized,
6.250% due 12/20/27 510,625
- ------------------------------------------------------------------------------------------------------------------------------------
1,766,375
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 63
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 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 $ 285,000
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 7/1/10 264,375
- ------------------------------------------------------------------------------------------------------------------------------------
549,375
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin -- 1.2%
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(c) 262,500
1,000,000 AAA Wisconsin State Health & Education Facilities Authority Revenue, (Marquette
University Project), FGIC-Insured, (Pre-Refunded -- Escrowed with
U.S. government securities to 12/1/04 Call @ 101), 6.450% due 12/1/19 1,087,500
- ------------------------------------------------------------------------------------------------------------------------------------
1,350,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $118,747,603**) $116,927,363
- ------------------------------------------------------------------------------------------------------------------------------------
</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. Ratings of issues shown have not been audited by Ernst &
Young LLP.
(b) Security is segregated for open purchase commitments.
(c) 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.
(d) 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.
(e) 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 65 and 66 for bond ratings and certain security descriptions.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
64 1999 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 65
<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.
NR --Indicates that the bond is not rated by Standard & Poor's or Moody's.
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
66 1999 Annual Report to Shareholders
<PAGE>
[This page intentionally left blank]
- --------------------------------------------------------------------------------
The Concert Investment Series 67
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Government Growth
Growth Fund Fund Fund
==================================================================================================================================
<S> <C> <C> <C>
ASSETS:
Investments, at cost $ 264,081,602 $ 212,215,830 $3,158,464,738
Repurchase agreements, at cost 15,425,000 -- 198,202,000
Foreign currency, at cost -- -- --
==================================================================================================================================
Investments, at value $ 263,674,073 $ 209,381,128 $4,995,937,999
Repurchase agreements, at value 15,425,000 -- 198,202,000
Foreign currency, at value -- -- --
Cash 586 -- 641
Collateral for securities loaned (Note 12) 42,354,476 -- 506,527,502
Receivable for securities sold -- 28,034,050 24,215,257
Receivable for Fund shares sold 437,574 242,614 2,336,783
Dividends and interest receivable 33,362 915,843 7,516,716
Receivable for open forward foreign currency contracts -- -- --
Receivable from broker - variation margin 277,875 -- --
Receivable from manager -- -- --
Deferred organization costs 1,395 -- --
Other receivables -- 2,256 --
Other assets 6,552 83,359 693,940
- ----------------------------------------------------------------------------------------------------------------------------------
Total Assets 322,210,893 238,659,250 5,735,430,838
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities loaned (Note 12) 42,354,476 -- 506,527,502
Payable for securities purchased 3,127,377 28,666,934 44,468,584
Payable for Fund shares purchased 337,338 1,020,260 3,469,688
Investment advisory fees payable 140,696 115,508 2,202,109
Trustees retirement plan 15,901 88,194 1,124,006
Payable for open forward foreign currency contracts -- -- --
Distribution fees payable -- -- 67,103
Dividends payable -- 12,933 --
Payable to bank -- 8,501,833 --
Accrued expenses 314,962 350,012 1,764,442
- ----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 46,290,750 38,755,674 559,623,434
- ----------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 275,920,143 $ 199,903,576 $5,175,807,404
==================================================================================================================================
NET ASSETS:
Par value of shares of beneficial interest $ 111,947 $ 205,279 $ 2,127,508
Capital paid in excess of par value 201,282,670 244,487,375 2,993,513,626
Undistributed (overdistributed) net
investment income -- (33,389) 11,654,093
Accumulated net investment loss (5,951) -- --
Accumulated net realized gain (loss)
on security transactions and futures contracts 75,021,271 (41,920,987) 331,038,916
Net unrealized appreciation (depreciation) of
investments, futures contracts and foreign currencies (489,794) (2,834,702) 1,837,473,261
- ----------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 275,920,143 $ 199,903,576 $5,175,807,404
==================================================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
68 1999 Annual Report to Shareholders
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
October 31, 1999
- ---------------------------------------------------------------------------------------------------------
Growth and International Mid Cap Municipal
Income Fund Equity Fund Fund Bond Fund
=========================================================================================================
<S> <C> <C> <C>
$ 1,204,960,076 $ 44,870,611 $ 21,505,101 $ 118,747,603
5,959,000 1,404,000 5,104,000 --
-- 48,957 -- --
=========================================================================================================
$ 1,505,773,500 $ 80,848,852 $ 23,088,858 $ 116,927,363
5,959,000 1,404,000 5,104,000 --
-- 49,524 -- --
935 38,136 809 323,630
128,457,902 -- -- --
-- 2,002,471 4,039 --
900,249 444,173 129,940 272,612
1,267,015 20,809 24,476 1,975,410
-- 3,179 -- --
-- -- 72,675 --
-- -- 48,180 --
-- 9,065 -- --
-- -- 25,283 10,392
162,853 -- -- 18,613
- ---------------------------------------------------------------------------------------------------------
1,642,521,454 84,820,209 28,498,260 119,528,020
- ---------------------------------------------------------------------------------------------------------
128,457,902 -- -- --
-- 1,834,058 550,966 1,955,998
1,229,469 46,923 6,534 167,293
748,631 60,014 -- 58,537
304,766 -- -- 37,951
-- 2,468 -- --
38,843 23,417 -- --
-- -- -- 26,744
-- -- -- --
1,049,003 97,411 50,718 158,817
- ---------------------------------------------------------------------------------------------------------
131,828,614 2,064,291 608,218 2,405,340
- ---------------------------------------------------------------------------------------------------------
$ 1,510,692,840 $ 82,755,918 $ 27,890,042 $ 117,122,680
=========================================================================================================
$ 708,114 $ 26,103 $ 23,272 $ 90,816
969,378,543 44,666,619 27,147,723 119,260,252
(58,299) -- -- 115,863
-- -- -- --
239,851,058 2,093,246 (913,920) (524,011)
300,813,424 35,969,950 1,632,967 (1,820,240)
- ---------------------------------------------------------------------------------------------------------
$ 1,510,692,840 $ 82,755,918 $ 27,890,042 $ 117,122,680
=========================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 69
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Government Growth
Growth Fund Fund Fund
===================================================================================================================================
<S> <C> <C> <C>
Shares Outstanding:
Class 1 364,678 16,415,894 183,673,088
-------------------------------------------------------------------------------------------------------------------------------
Class A 5,492,107 2,357,739 14,153,304
-------------------------------------------------------------------------------------------------------------------------------
Class B 5,337,936 1,754,278 14,924,365
-------------------------------------------------------------------------------------------------------------------------------
Net Asset Value:
Class 1 (and redemption price) $25.33 $9.74 $24.36
-------------------------------------------------------------------------------------------------------------------------------
Class A (and redemption price) $25.08 $9.73 $24.29
-------------------------------------------------------------------------------------------------------------------------------
Class B * $24.16 $9.74 $23.95
-------------------------------------------------------------------------------------------------------------------------------
Maximum Public Offering Price Per Share:
Class 1:
(net asset value plus 9.29% of net asset value per share) $27.68 -- $26.62
-------------------------------------------------------------------------------------------------------------------------------
(net asset value plus 7.24% of net asset value per share) -- $10.45 --
-------------------------------------------------------------------------------------------------------------------------------
(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) $26.40 -- $25.57
-------------------------------------------------------------------------------------------------------------------------------
(net asset value plus 4.71% of net asset value per share) -- $10.19 --
====================================================================================================================================
</TABLE>
* Redemption price is NAV of Class B shares reduced by a 5.00% CDSC for
Emerging Growth, Growth, Growth and Income 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.
- --------------------------------------------------------------------------------
70 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and International Mid Cap Municipal
Income Fund Equity Fund Fund Bond Fund
============================================================================================
<S> <C> <C> <C>
52,501,218 114,718 61,585 5,798,425
- --------------------------------------------------------------------------------------------
8,498,496 1,168,662 848,655 2,643,185
- --------------------------------------------------------------------------------------------
9,811,711 1,326,889 1,416,948 640,028
- --------------------------------------------------------------------------------------------
$21.36 $32.57 $12.03 $12.90
- --------------------------------------------------------------------------------------------
$21.35 $32.24 $12.01 $12.90
- --------------------------------------------------------------------------------------------
$21.16 $31.16 $11.97 $12.88
- --------------------------------------------------------------------------------------------
$23.34 $35.60 $13.15 --
- --------------------------------------------------------------------------------------------
-- -- -- --
- --------------------------------------------------------------------------------------------
-- -- -- $13.54
- --------------------------------------------------------------------------------------------
$22.47 $33.94 $12.64 --
- --------------------------------------------------------------------------------------------
-- -- -- $13.51
============================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 71
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Government Growth
Growth Fund Fund Fund
====================================================================================================================================
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 806,399 $ 13,737,771 $ 15,460,717
Dividends 891,807 -- 38,241,246
Less: Interest expense -- (12,009) --
Less: Foreign withholding tax (1,853) -- (735,790)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 1,696,353 13,725,762 52,966,173
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees (Note 2) 1,632,814 1,320,702 26,462,719
Distribution fees (Note 2) 1,465,913 207,018 3,329,130
Shareholder and system servicing fees 1,253,153 530,046 7,040,362
Shareholder communications 198,973 49,590 2,051,712
Registration fees 71,119 53,891 272,371
Audit and legal 53,377 29,802 51,872
Custody 35,599 21,818 174,520
Trustees' fees 16,963 15,870 430,155
Amortization of deferred organization costs 4,168 -- --
Other 20,379 12,371 61,830
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 4,752,458 2,241,108 39,874,671
Less: Investment advisory fee waiver (Note 2) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 4,752,458 2,241,108 39,874,671
- ------------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (3,056,105) 11,484,654 13,091,502
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCIES (NOTES 4, 7 AND 9):
Realized Gain (Loss) From:
Security transactions 76,911,975 (14,243,618) 321,378,551
Futures contracts 1,197,481 (686,250) 28,603,885
Foreign currency transactions -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) 78,109,456 (14,929,868) 349,982,436
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation (Depreciation) of
Investments, Futures Contracts and Foreign Currencies:
Beginning of year 7,298,081 1,352,916 800,236,601
End of year (489,794) (2,834,702) 1,837,473,261
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Unrealized Appreciation (Depreciation) (7,787,875) (4,187,618) 1,037,236,660
- ------------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments, Futures Contracts
and Foreign Currencies 70,321,581 (19,117,486) 1,387,219,096
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations $ 67,265,476 $ (7,632,832) $ 1,400,310,598
===================================================================================================================================
</TABLE>
(a) For the period from March 15, 1999 (commencement of operations) to October
31, 1999.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
72 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
For the Year Ended October 31, 1999
- --------------------------------------------------------------------------------
Growth and International Mid Cap Municipal
Income Fund Equity Fund Fund(a) Bond Fund
================================================================================
$ 1,114,147 $ 19,184 $ 92,815 $ 6,879,872
17,734,607 276,985 61,592 --
-- -- -- --
(30,911) (21,555) -- --
- --------------------------------------------------------------------------------
18,817,843 274,614 154,407 6,879,872
- --------------------------------------------------------------------------------
9,381,462 545,582 73,778 719,565
2,146,625 322,037 67,044 139,395
2,424,155 211,977 35,894 201,985
347,984 17,156 13,589 36,784
100,100 110,211 1,132 80,538
33,852 56,067 26,481 36,190
63,700 26,733 29,054 10,511
103,740 13,528 469 16,380
-- 4,164 -- --
76,075 5,665 6,028 32,840
- --------------------------------------------------------------------------------
14,677,693 1,313,120 253,469 1,274,188
-- -- (63,462) --
- --------------------------------------------------------------------------------
14,677,693 1,313,120 190,007 1,274,188
- --------------------------------------------------------------------------------
4,140,150 (1,038,506) (35,600) 5,605,684
- --------------------------------------------------------------------------------
242,433,122 3,113,390 (914,897) (524,011)
-- -- 977 --
-- (79,948) -- --
- --------------------------------------------------------------------------------
242,433,122 3,033,442 (913,920) (524,011)
- --------------------------------------------------------------------------------
282,931,597 7,094,667 -- 8,967,167
300,813,424 35,969,950 1,632,967 (1,820,240)
- --------------------------------------------------------------------------------
17,881,827 28,875,283 1,632,967 (10,787,407)
- --------------------------------------------------------------------------------
260,314,949 31,908,725 719,047 (11,311,418)
- --------------------------------------------------------------------------------
$ 264,455,099 $ 30,870,219 $ 683,447 $ (5,705,734)
================================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 73
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Government Growth
Growth Fund Fund Fund
====================================================================================================================================
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (3,056,105) $ 11,484,654 $ 13,091,502
Net realized gain (loss) 78,109,456 (14,929,868) 349,982,436
Change in net unrealized appreciation (depreciation) (7,787,875) (4,187,618) 1,037,236,660
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
From Operations 67,265,476 (7,632,832) 1,400,310,598
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM (NOTE 3):
Net investment income -- (11,568,080) (20,153,502)
Net realized gains (16,075,519) -- (371,663,728)
Capital -- (1,061,348) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (16,075,519) (12,629,428) (391,817,230)
- ------------------------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 16):
Net proceeds from sale of shares 66,351,027 42,064,731 501,492,120
Net asset value of shares issued for
reinvestment of dividends 16,075,519 12,536,444 391,817,230
Cost of shares reacquired (64,159,733) (75,932,582) (744,554,174)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions 18,266,813 (21,331,407) 148,755,176
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 69,456,770 (41,593,667) 1,157,248,544
NET ASSETS:
Beginning of year 206,463,373 241,497,243 4,018,558,860
- ------------------------------------------------------------------------------------------------------------------------------------
End of year* $ 275,920,143 $ 199,903,576 $ 5,175,807,404
====================================================================================================================================
* Includes undistributed (overdistributed)
net investment income of: $ -- $ (33,389) $ 11,654,093
- ------------------------------------------------------------------------------------------------------------------------------------
* Includes accumulated net
investment loss of: $(5,951) -- --
====================================================================================================================================
</TABLE>
(a) For the period from March 15, 1999 (commencement of operations) to October
31, 1999.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
74 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
For the Year Ended October 31, 1999
- --------------------------------------------------------------------------------
Growth and International Mid Cap Municipal
Income Fund Equity Fund Fund(a) Bond Fund
- --------------------------------------------------------------------------------
$ 4,140,150 $ (1,038,506) $ (35,600) $ 5,605,684
242,433,122 3,033,442 (913,920) (524,011)
17,881,827 28,875,283 1,632,967 (10,787,407)
- --------------------------------------------------------------------------------
264,455,099 30,870,219 683,447 (5,705,734)
- --------------------------------------------------------------------------------
(4,140,150) -- -- (5,901,230)
(56,051,830) -- -- (1,847,449)
-- -- -- --
- --------------------------------------------------------------------------------
(60,191,980) -- -- (7,748,679)
- --------------------------------------------------------------------------------
200,988,247 23,412,892 30,835,135 44,847,336
60,191,853 -- -- 7,611,910
(294,359,957) (10,825,712) (3,628,540) (37,315,339)
- --------------------------------------------------------------------------------
(33,179,857) 12,587,180 27,206,595 15,143,907
- --------------------------------------------------------------------------------
171,083,262 43,457,399 27,890,042 1,689,494
1,339,609,578 39,298,519 -- 115,433,186
- --------------------------------------------------------------------------------
$ 1,510,692,840 $ 82,755,918 $ 27,890,042 $ 117,122,680
================================================================================
$ (58,299) -- -- $ 115,863
- --------------------------------------------------------------------------------
-- -- -- --
================================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series 75
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Government
Growth 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 16):
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.
- --------------------------------------------------------------------------------
76 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
For the Year Ended October 31, 1998
- --------------------------------------------------------------------------------
Growth Growth and International Municipal
Fund Income Fund Equity Fund Bond 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 77
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
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 and consists of
these portfolios and five other separate investment portfolios: Select Growth,
Select Mid Cap, Select Growth and Income, Select Emerging Growth and Select
Government Portfolios. The financial statements and financial highlights for the
other portfolios are presented in a separate shareholder report.
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 is 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, 1999, reclassifications
were made to the capital accounts of the Emerging Growth, Government, Growth,
International Equity, Mid Cap and Municipal Bond Funds to reflect permanent
book/tax differences and income and gains available for distributions under
income tax regulations. In addition, a portion of undistributed
- --------------------------------------------------------------------------------
78 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
(overdistributed) net investment income amounting to $168,628, $(349,683) and
$(35,600) was reclassified to paid-in-capital for the Emerging Growth,
International Equity and Mid Cap Funds, respectively. Net investment income, net
realized gains and net assets were not affected by this change; (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 foreign 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
SSB Citi Fund Management LLC ("SSBC"), formerly known as SSBC Fund Management
Inc., a subsidiary of Salomon Smith Barney Holdings Inc. ("SSBH"), which in turn
is a subsidiary of Citigroup, Inc., acts as the investment adviser 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 advisory fee calculated at
an annual rate of 1.00% of its average daily net assets and the Mid Cap Fund
pays SSBC an investment advisory 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 year ended October 31, 1999, SSBC has waived a portion of its investment
advisory fee for the Mid Cap Fund amounting to $63,462.
CFBDS, Inc. ("CFBDS") acts as the Funds' distributor. CFBDS received sales
charges of approximately $12,087,476 and $8,782,597, on sales of the Funds'
Class 1 and A shares for the year ended October 31, 1999. For the year ended
October 31, 1999, Salomon Smith Barney, Inc. ("SSB") and its affiliates received
brokerage commissions of approximately $273,544.
There is a contingent deferred sales charge ("CDSC") of 5.00% on Class B shares
for the Emerging Growth, Growth, Growth and Income, International Equity and Mid
Cap 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
- --------------------------------------------------------------------------------
The Concert Investment Series 79
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
on Class B shares for the Government and Municipal Bond 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.
For the year ended October 31, 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 $510,297 $113,375 $767,965 $639,210 $68,326 $6,541 $55,804
==============================================================================================================================
</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 year ended October 31, 1999,
total Distribution Plan fees incurred were:
Distribution Plan Fees Class A Class B
================================================================================
Emerging Growth Fund $319,921 $1,145,992
- --------------------------------------------------------------------------------
Government Fund 50,584 156,434
- --------------------------------------------------------------------------------
Growth Fund 659,586 2,669,544
- --------------------------------------------------------------------------------
Growth and Income Fund 394,715 1,751,910
- --------------------------------------------------------------------------------
International Equity Fund 65,440 256,597
- --------------------------------------------------------------------------------
Mid Cap Fund 9,530 57,514
- --------------------------------------------------------------------------------
Municipal Bond Fund 65,278 74,117
================================================================================
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.
- --------------------------------------------------------------------------------
80 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
4. Investments
During the year ended October 31, 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 $ 274,308,702 $ 287,131,486
- --------------------------------------------------------------------------------
Government Fund 449,092,463 450,174,633
- --------------------------------------------------------------------------------
Growth Fund 1,721,040,561 1,787,696,937
- --------------------------------------------------------------------------------
Growth and Income Fund 778,786,005 870,391,604
- --------------------------------------------------------------------------------
International Equity Fund 37,003,009 27,118,224
- --------------------------------------------------------------------------------
Mid Cap Fund 28,869,962 6,449,964
- --------------------------------------------------------------------------------
Municipal Bond Fund 62,282,693 45,175,753
================================================================================
At October 31, 1999, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were substantially
as follows:
Net Unrealized
Appreciation
Appreciation Depreciation (Depreciation)
- --------------------------------------------------------------------------------
Emerging Growth Fund $ 39,514,575 $ (39,922,104) $ (407,529)
- --------------------------------------------------------------------------------
Government Fund 535,722 (3,370,424) (2,834,702)
- --------------------------------------------------------------------------------
Growth Fund 1,974,325,002 (136,851,741) 1,837,473,261
- --------------------------------------------------------------------------------
Growth and Income Fund 357,815,166 (57,001,742) 300,813,424
- --------------------------------------------------------------------------------
International Equity Fund 36,353,176 (374,935) 35,978,241
- --------------------------------------------------------------------------------
Mid Cap Fund 2,449,396 (865,639) 1,583,757
- --------------------------------------------------------------------------------
Municipal Bond Fund 3,175,940 (4,996,180) (1,820,240)
- --------------------------------------------------------------------------------
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. Reverse Repurchase Agreement
The Government, International Equity and Mid Cap Funds may enter into reverse
repurchase agreement transactions for leveraging purposes.
A reverse repurchase agreement involves a sale by a Fund of securities that it
holds with an agreement by the Fund to repurchase the same securities at an
agreed upon price and date. A reverse repurchase agreement involves the risk
that the market value of the securities sold by the Fund may decline below the
repurchase price of the securities. The Fund will establish a segregated account
with its custodian, in which the Fund will maintain cash, U.S. government
securities or other liquid high grade debt obligations equal in value to its
obligations with respect to reverse repurchase agreements.
- --------------------------------------------------------------------------------
The Concert Investment Series 81
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
During the year ended October 31, 1999, the Government Fund had one reverse
repurchase agreement amounting to $21,670,000 with a weighted average interest
rate of 2.85%. In addition, the average daily amount of borrowings during the
year ended October 31, 1999 was $59,370.
Interest expense for the year ended October 31, 1999 on borrowings by the Fund
under the reverse repurchase agreement totalled $12,009.
7. 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.
At October 31, 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 Loss
==================================================================================================================
<S> <C> <C> <C> <C> <C>
MidCap 400 Index 65 12/99 $13,122,890 $13,040,625 $(82,265)
==================================================================================================================
<CAPTION>
Mid Cap Fund # of Basis Market Unrealized
Purchased Contracts Contracts Expiration Value Value Gain
==================================================================================================================
<S> <C> <C> <C> <C> <C>
MidCap 400 Index 17 12/99 $3,361,415 $3,410,625 $49,210
==================================================================================================================
</TABLE>
8. Option Contracts
The Emerging Growth, Government, Growth, Growth and Income, International Equity
and Mid Cap 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 October 31, 1999, the Funds held no purchased call or put options.
- --------------------------------------------------------------------------------
82 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
When a Fund writes a covered call or put option, an amount equal to the premium
received by the Fund is recorded as a liability, the value of which is
marked-to-market daily. When a written option expires, the Fund realizes a gain.
When the Fund enters into a closing purchase transaction, the Fund realizes a
gain or loss depending upon whether the cost of the closing transaction is
greater or less than the premium originally received without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is eliminated. When a written call option is exercised, the cost of
the security sold will be decreased by the premium originally received. When a
put option is exercised, the amount of the premium originally received will
reduce the cost of the security which the Fund purchased upon exercise. When
written index options are exercised, settlement is made in cash.
The risk associated with purchasing options is limited to the premium originally
paid. The Fund enters into options for hedging purposes. The risk in writing a
covered call option is that the Fund gives up the opportunity to participate in
any increase in the price of the underlying security beyond the exercise price.
The risk in writing a put option is that the Fund is exposed to the risk of a
loss if the market price of the underlying security declines.
During the year ended October 31, 1999, the Funds did not write any covered call
or put options.
9. Forward Foreign Currency Contracts
The International Equity Fund has the ability to enter into forward foreign
currency contracts.
At October 31, 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 net unrealized gain (loss) on the contracts
reflected in the accompanying financial statements is 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:
Australian Dollar 182,257 $ 116,157 11/1/99 $ 1,217
Australian Dollar 33,760 21,517 11/3/99 272
Australian Dollar 105,161 67,420 11/4/99 (432)
Euro 78,802 82,933 11/16/99 540
Singapore Dollar 7,567 4,550 11/4/99 (19)
Swedish Krona 12,634,370 1,534,012 11/2/99 (1,715)
- ----------------------------------------------------------------------------------------------------------
(137)
- ----------------------------------------------------------------------------------------------------------
To Buy:
Euro 227,440 239,113 11/1/99 (63)
Euro 174,515 183,851 11/30/99 (35)
Norwegian Krone 662,161 84,407 11/1/99 (204)
Norwegian Krone 1,993,011 254,052 11/2/99 294
Singapore Dollar 445,413 267,847 11/4/99 604
South African Rand 2,037,595 331,380 11/2/99 252
- ----------------------------------------------------------------------------------------------------------
848
- ----------------------------------------------------------------------------------------------------------
Total Net Unrealized Gain on Forward Foreign Currency Contracts $ 711
==========================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
The Concert Investment Series 83
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
10. 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.
11. Short Sales of Securities
The Emerging Growth, Growth, Growth and Income, International Equity and Mid Cap
Funds may from time to time make short sales of securities they own or have the
right to acquire through conversion or exchange of other securities they own.
A short sale is a transaction in which a Fund sells securities it does not own
(but has borrowed) in anticipation of a decline in the market price of the
securities. To complete a short sale, the Fund may arrange through a broker to
borrow the securities to be delivered to the buyer. The proceeds received by the
Fund for the short sale are retained by the broker until the Fund replaces the
borrowed securities. In borrowing the securities to be delivered to the buyer,
the Fund becomes obligated to replace the securities borrowed at their market
price at the time of replacement, whatever the price may be.
As of October 31, 1999, the Funds did not have any open short sale transactions.
12. 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 October 31, 1999, the Emerging Growth, Growth, and Growth and Income Funds
loaned stocks having a value of approximately $41,911,442, $496,070,058 and
$127,510,210, respectively. These Funds held the following collateral for loaned
securities:
- --------------------------------------------------------------------------------
84 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Emerging Growth Fund
Security Description Value
================================================================================
Certificate of Deposit:
Deutsche Bank, 6.040% due 1/14/00 $ 595,740
Commercial Paper:
Atlantis One Funding Corp., 5.920% due 2/23/00 1,416,180
Corporate Receivables Corp., 6.181% due 1/27/00 1,013,323
Corporate Receivables Corp., 5.997% due 1/26/00 2,841,924
Sigma Finance, Inc., 5.959% due 2/10/00 2,600,714
Time Deposits:
Banco Bilboa Vizcaya S.A., 5.375% due 11/1/99 7,314,360
Bank Brussels Lambert, 5.375% due 11/1/99 10,727,728
Bank of Montreal, 5.375% due 11/1/99 4,758,807
Banque Paribas, 5.375% due 11/1/99 3,413,368
Caisse des Depots et Consig., 5.375% due 11/1/99 7,314,360
Chase Manhattan Bank, 5.250% due 11/1/99 357,972
- --------------------------------------------------------------------------------
Total $ 42,354,476
================================================================================
Growth Fund
Security Description Value
================================================================================
Certificates of Deposit:
Deutsche Bank, 6.040% due 1/14/00 $ 13,869,847
Wilmington Trust Co., 5.910% due 2/23/00 16,398,121
Commercial Paper:
American Home Products Corp., 5.928% due 3/2/00 5,544,390
Asset Securitization Corp., 5.934% due 2/28/00 6,940,010
Atlantis One Funding Corp., 5.920% due 2/23/00 9,163,535
Atlantis One Funding Corp., 5.770% due 3/6/00 2,992,663
Atlantis One Funding Corp., 5.973% due 3/22/00 1,754,551
Atlantis One Funding Corp., 5.998% due 1/21/00 16,288,530
Atlantis One Funding Corp., 5.992% due 1/25/00 14,109,967
Bank of Montreal, 4.920% due 11/1/99 7,653,354
Bareton Capital Corp., 5.443% due 12/10/99 53,216,211
CC (USA) Inc., 5.904% due 2/14/00 6,254,771
CC (USA) Inc., 5.937% due 2/22/00 5,844,024
CC (USA) Inc., 5.934% due 2/22/00 3,306,244
CC (USA) Inc., 5.947% due 2/29/00 1,085,641
CC (USA) Inc., 6.002% due 3/20/00 2,414,826
Corporate Receivables Corp., 6.196% due 1/18/00 10,940,186
Corporate Receivables Corp., 5.941% due 2/28/00 11,140,420
Corporate Receivables Corp., 5.949% due 2/28/00 3,137,964
Corporate Receivables Corp., 6.181% due 1/27/00 5,088,687
Falcon Asset Securitization Corp., 6.196% due 1/18/00 12,501,122
Morgan Stanley, 5.340% due 1/18/00 5,960,330
Moriarty LLC, 5.912% due 2/1/00 17,441,600
Moriarty LLC, 6.017% due 2/1/00 2,638,590
Moriarty LLC, 6.258% due 1/10/00 4,026,704
Sigma Finance, Inc., 5.959% due 2/10/00 24,592,796
Sigma Finance, Inc., 5.929% due 2/28/00 639,138
Floating Rate Note:
Goldman Sachs, 5.280% due 8/23/00 19,799,968
Time Deposits:
Banco Bilboa Vizcaya S.A., 5.375% due 11/1/99 38,543,326
Bank Brussels Lambert, 5.375% due 11/1/99 56,530,212
Bank of Montreal, 5.375% due 11/1/99 25,076,734
Banque Paribas, 5.375% due 11/1/99 17,986,886
Caisse des Depots et Consig., 5.375% due 11/1/99 38,543,326
Chase Manhattan Bank, 5.250% due 11/1/99 12,538,642
Variable Rate Commercial Paper:
Keybank USA Corp., 5.280% due 4/20/00 16,021,525
Sigma Finance, Inc., 6.250% due 4/4/00 16,542,661
- --------------------------------------------------------------------------------
Total $506,527,502
================================================================================
- --------------------------------------------------------------------------------
The Concert Investment Series 85
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Growth and Income Fund
Security Description Value
================================================================================
Certificate of Deposit:
Deutsche Bank, 6.040% due 1/14/00 $ 1,621,851
Commercial Paper:
Atlantis One Funding Corp., 5.998% due 1/21/00 1,457,040
Atlantis One Funding Corp., 5.973% due 3/22/00 891,789
Bank of Montreal, 4.920% due 11/1/99 2,205,581
Barton Capital Corp., 6.153% due 1/26/00 2,086,703
CC (USA) Inc., 5.903% due 2/25/00 2,986,902
CC (USA) Inc., 6.002% due 3/20/00 6,360,356
Corporate Asset Funding Inc., 6.198% due 1/21/00 195,222
Corporate Receivables Corp., 5.997% due 1/26/00 2,025,292
Corporate Receivables Corp., 5.941% due 2/28/00 7,507,722
CXC Inc., 6.168% due 1/24/00 4,511
Delaware Funding Corp., 5.995% due 1/24/00 2,076,215
Falcon Asset Securitization Corp., 6.196% due 1/18/00 918,886
Morgan Stanley Dean Witter, 6.134% due 1/28/00 21,243,013
Moriarty LLC, 6.095% due 1/31/00 3,752,888
Moriarty LLC, 6.017% due 2/1/00 643,662
Moriarty LLC, 5.980% due 2/14/00 1,103,848
Floating Rate Note:
Goldman Sachs, 5.280% due 8/23/00 8,372,112
Time Deposits:
Banco Bilboa Vizcaya S.A., 5.375% due 11/1/99 12,987,139
Bank Brussels Lambert, 5.375% due 11/1/99 19,047,804
Bank of Montreal, 5.375% due 11/1/99 8,449,583
Banque Paribas, 5.375% due 11/1/99 6,060,665
Caisse des Depots et Consig, 5.375% due 11/1/99 12,987,139
Chase Manhattan Bank, 5.250% due 11/1/99 3,471,979
- --------------------------------------------------------------------------------
Total $128,457,902
================================================================================
Income earned from securities lending by the Funds for the year ended October
31, 1999 were as follows:
Portfolio Income
================================================================================
Emerging Growth Fund $ 148,861
- --------------------------------------------------------------------------------
Growth Fund 385,502
- --------------------------------------------------------------------------------
Growth and Income Fund 153,426
================================================================================
13. 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 October 31, 1999, the Government Fund had purchased one TBA security with
a total cost amounting to $14,012,305.
- --------------------------------------------------------------------------------
86 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
14. Securities Traded on a When-Issued Basis
The Municipal Bond Fund may at times be purchased or sold on a "when issued"
basis.
In a when-issued transaction, the Fund commits to purchasing securities for
which specific information is not yet known at the time of the trade. Securities
purchased on a when-issued basis are not settled until they are delivered to the
Fund. Beginning on the date the Fund enters into the when-issued transaction,
the custodian maintains cash, U.S. government securities or other liquid high
grade debt obligations in a segregated account equal in value to the purchase
price of the when-issued security. These transactions are subject to market
fluctuations and their current value is determined in the same manner as for
other securities.
At October 31, 1999, the Fund did not hold any when-issued securities.
15. Capital Loss Carryforward
At October 31, 1999, the Government, Mid Cap and Municipal Bond Funds had, for
Federal income tax purposes, approximately $41,921,000, $649,000 and $524,000,
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 2007
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Government Fund $41,921,000 $23,010,000 $143,000 $3,061,000 $707,000 $15,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Fund 649,000 -- -- -- -- 649,000
- ------------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund 524,000 -- -- -- -- 524,000
====================================================================================================================================
</TABLE>
16. 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 year ended October 31, 1999, total paid-in capital amounted to the
following for each Fund and class:
Class 1 Class A Class B
================================================================================
Emerging Growth Fund $ 7,216,443 $ 96,659,700 $ 97,518,474
- --------------------------------------------------------------------------------
Government Fund 202,148,664 24,343,112 18,200,878
- --------------------------------------------------------------------------------
Growth Fund 2,433,585,534 276,575,094 285,480,506
- --------------------------------------------------------------------------------
Growth and Income Fund 635,458,196 156,257,860 178,370,601
- --------------------------------------------------------------------------------
International Equity Fund 2,036,242 18,621,199 24,035,281
- --------------------------------------------------------------------------------
Mid Cap Fund 719,853 9,890,608 16,560,534
- --------------------------------------------------------------------------------
Municipal Bond Fund 73,378,144 36,965,600 9,007,324
================================================================================
- --------------------------------------------------------------------------------
The Concert Investment Series 87
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Year Ended October 31, 1999 Year Ended October 31, 1998
----------------------------------- -------------------------------------
Emerging Growth Fund Shares Amount Shares Amount
===================================================================================================================
<S> <C> <C> <C> <C>
Class 1
Shares sold 84,989 $ 1,964,552 150,284 $ 3,381,423
Shares issued on reinvestment 24,496 550,198 2,928 60,973
Shares reacquired (104,166) (2,387,190) (69,885) (1,565,901)
- -------------------------------------------------------------------------------------------------------------------
Net Increase 5,319 $ 127,560 83,327 $ 1,876,495
===================================================================================================================
Class A
Shares sold 1,355,950 $ 31,306,266 1,902,205 $ 42,361,807
Shares issued on reinvestment 370,018 8,251,403 47,590 987,487
Shares reacquired (1,582,836) (36,399,497) (1,156,107) (25,816,588)
- -------------------------------------------------------------------------------------------------------------------
Net Increase 143,132 $ 3,158,172 793,688 $ 17,532,706
===================================================================================================================
Class B
Shares sold 1,475,626 $ 33,080,209 1,747,097 $ 38,225,075
Shares issued on reinvestment 336,600 7,273,918 41,763 802,632
Shares reacquired (1,137,767) (25,373,046) (810,261) (17,553,627)
- -------------------------------------------------------------------------------------------------------------------
Net Increase 674,459 $ 14,981,081 978,599 $ 21,474,080
===================================================================================================================
Government Fund
===================================================================================================================
Class 1
Shares sold 1,257,665 $ 12,847,010 1,105,624 $ 10,528,908
Shares issued on reinvestment 1,059,776 10,744,185 1,286,759 13,675,731
Shares reacquired (5,604,150) (56,776,486) (5,430,883) (56,558,591)
- -------------------------------------------------------------------------------------------------------------------
Net Decrease (3,286,709) $ (33,185,291) (3,038,500) $ (32,353,952)
===================================================================================================================
Class A
Shares sold 1,850,439 $ 18,712,202 901,331 $ 9,582,888
Shares issued on reinvestment 105,854 1,067,253 86,459 919,109
Shares reacquired (1,206,897) (12,105,083) (658,405) (7,004,412)
- -------------------------------------------------------------------------------------------------------------------
Net Increase 749,396 $ 7,674,372 329,385 $ 3,497,585
===================================================================================================================
Class B
Shares sold 1,037,836 $ 10,505,519 501,510 $ 5,190,950
Shares issued on reinvestment 71,810 725,006 65,763 699,051
Shares reacquired (699,803) (7,051,013) (392,534) (4,034,905)
- -------------------------------------------------------------------------------------------------------------------
Net Increase 409,843 $ 4,179,512 174,739 $ 1,855,096
===================================================================================================================
Growth Fund
===================================================================================================================
Class 1
Shares sold 9,411,963 $ 209,005,325 10,240,715 $ 203,692,707
Shares issued on reinvestment 16,683,567 356,027,327 33,842,054 597,650,203
Shares reacquired (29,090,514) (649,360,808) (26,781,677) (533,611,502)
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (2,994,984) $ (84,328,156) 17,301,092 $ 267,731,408
===================================================================================================================
Class A
Shares sold 6,499,940 $ 145,825,290 4,476,613 $ 88,986,499
Shares issued on reinvestment 852,135 18,167,521 1,085,537 19,159,725
Shares reacquired (2,401,189) (53,765,679) (1,552,856) (30,826,021)
- -------------------------------------------------------------------------------------------------------------------
Net Increase 4,950,886 $ 110,227,132 4,009,294 $ 77,320,203
===================================================================================================================
Class B
Shares sold 6,586,645 $ 146,661,505 3,470,083 $ 68,573,422
Shares issued on reinvestment 833,209 17,622,382 1,211,425 21,345,308
Shares reacquired (1,878,345) (41,427,687) (1,381,729) (27,317,870)
- -------------------------------------------------------------------------------------------------------------------
Net Increase 5,541,509 $ 122,856,200 3,299,779 $ 62,600,860
===================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
88 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended October 31, 1999 Year Ended October 31, 1998
---------------------------------- -------------------------------------
Growth and Income Fund Shares Amount Shares Amount
====================================================================================================================
<S> <C> <C> <C> <C>
Class 1
Shares sold 2,598,797 $ 53,410,600 2,929,819 $ 55,100,017
Shares issued on reinvestment 2,463,190 48,749,017 10,752,036 183,848,216
Shares reacquired (10,761,833) (221,519,010) (10,065,660) (189,054,918)
- --------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (5,699,846) $(119,359,393) 3,616,195 $ 49,893,315
====================================================================================================================
Class A
Shares sold 3,444,529 $ 71,212,020 3,128,961 $ 58,915,223
Shares issued on reinvestment 282,097 5,574,730 850,762 14,535,892
Shares reacquired (1,943,345) (40,176,253) (1,236,598) (23,150,922)
- --------------------------------------------------------------------------------------------------------------------
Net Increase 1,783,281 $ 36,610,497 2,743,125 $ 50,300,193
====================================================================================================================
Class B
Shares sold 3,712,290 $ 76,365,627 2,792,516 $ 52,370,872
Shares issued on reinvestment 298,328 5,868,106 974,244 16,582,261
Shares reacquired (1,593,823) (32,664,694) (1,325,667) (24,601,571)
- --------------------------------------------------------------------------------------------------------------------
Net Increase 2,416,795 $ 49,569,039 2,441,093 $ 44,351,562
====================================================================================================================
International Equity Fund
====================================================================================================================
Class 1
Shares sold 44,253 $ 1,056,385 39,075 $ 803,180
Shares issued on reinvestment -- -- -- --
Shares reacquired (37,660) (903,732) (21,495) (442,410)
- --------------------------------------------------------------------------------------------------------------------
Net Increase 6,593 $ 152,653 17,580 $ 360,770
====================================================================================================================
Class A
Shares sold 372,018 $ 9,036,138 322,280 $ 6,599,233
Shares issued on reinvestment -- -- -- --
Shares reacquired (241,749) (5,782,818) (197,676) (3,957,003)
- --------------------------------------------------------------------------------------------------------------------
Net Increase 130,269 $ 3,253,320 124,604 $ 2,642,230
====================================================================================================================
Class B
Shares sold 553,936 $ 13,320,369 331,033 $ 6,583,497
Shares issued on reinvestment -- -- -- --
Shares reacquired (180,077) (4,139,162) (159,560) (3,114,562)
- --------------------------------------------------------------------------------------------------------------------
Net Increase 373,859 $ 9,181,207 171,473 $ 3,468,935
====================================================================================================================
Mid Cap Fund
====================================================================================================================
Class 1+
Shares sold 81,549 $ 953,950 -- --
Shares issued on reinvestment -- -- -- --
Shares reacquired (19,964) (233,105) -- --
- --------------------------------------------------------------------------------------------------------------------
Net Increase 61,585 $ 720,845 -- --
====================================================================================================================
Class A++
Shares sold 1,094,915 $ 12,736,023 -- --
Shares issued on reinvestment -- -- -- --
Shares reacquired (246,260) (2,831,663) -- --
- --------------------------------------------------------------------------------------------------------------------
Net Increase 848,655 $ 9,904,360 -- --
====================================================================================================================
Class B+
Shares sold 1,465,219 $ 17,145,162 -- --
Shares issued on reinvestment -- -- --
Shares reacquired (48,271) (563,772) -- --
- --------------------------------------------------------------------------------------------------------------------
Net Increase 1,416,948 $ 16,581,390 -- --
====================================================================================================================
</TABLE>
+ For the period from March 16, 1999 (inception date) to October 31, 1999.
++ For the period from March 15, 1999 (inception date) to October 31, 1999.
- --------------------------------------------------------------------------------
The Concert Investment Series 89
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended October 31, 1999 Year Ended October 31, 1998
--------------------------------- ------------------------------------
Municipal Bond Fund Shares Amount Shares Amount
===============================================================================================================
<S> <C> <C> <C> <C>
Class 1
Shares sold 507,297 $ 7,008,366 571,369 $ 7,925,600
Shares issued on reinvestment 416,553 5,776,440 394,990 5,642,150
Shares reacquired (1,627,211) (22,405,163) (1,792,999) (25,390,446)
- ---------------------------------------------------------------------------------------------------------------
Net Decrease (703,361) $ (9,620,357) (826,640) $(11,822,696)
===============================================================================================================
Class A
Shares sold 2,292,682 $ 31,792,298 924,268 $ 13,208,421
Shares issued on reinvestment 104,752 1,440,910 44,855 640,998
Shares reacquired (876,726) (12,027,354) (462,474) (6,609,984)
- ---------------------------------------------------------------------------------------------------------------
Net Increase 1,520,708 $ 21,205,854 506,649 $ 7,239,435
===============================================================================================================
Class B
Shares sold 436,677 $ 6,046,672 265,736 $ 3,793,068
Shares issued on reinvestment 28,620 394,560 12,440 177,604
Shares reacquired (212,497) (2,882,822) (89,435) (1,273,554)
- ---------------------------------------------------------------------------------------------------------------
Net Increase 252,800 $ 3,558,410 188,741 $ 2,697,118
===============================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
90 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest
outstanding throughout each year ended October 31:
<TABLE>
<CAPTION>
Class 1 Shares
--------------------------------------------------------
Emerging Growth Fund 1999(1) 1998 1997 1996(2)
==================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $20.28 $22.15 $18.59 $17.89
- ----------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.13) (0.12) (0.08) (0.02)
Net realized and unrealized gain (loss) 6.71 (1.54) 3.64 0.72
- ----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 6.58 (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 Year $25.33 $20.28 $22.15 $18.59
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return 33.42% (7.52)% 19.15% 3.91%++
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $9 $7 $6 $1
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.25% 1.26% 1.39% 1.74%+
Net investment loss (0.58) (0.60) (0.63) (1.09)+
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 115% 80% 100% 80%
==================================================================================================================================
</TABLE>
(1) Net investment income (loss) has been calculated using the monthly average
shares method.
(2) 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.
- --------------------------------------------------------------------------------
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:
<TABLE>
<CAPTION>
Class A Shares
----------------------------------------------------------------------
Emerging Growth Fund 1999(1) 1998 1997 1996 1995(1)(2)
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $20.15 $22.08 $18.57 $15.12 $11.81
- -----------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.20) (0.17) (0.15) (0.18) (0.24)
Net realized and unrealized gain (loss) 6.66 (1.55) 3.66 3.63 3.55
- -----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 6.46 (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 Year $25.08 $20.15 $22.08 $18.57 $15.12
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 33.02% (7.81)% 18.90% 22.82% 28.11%++
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $138 $108 $101 $52 $16
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(3) 1.55% 1.43% 1.69% 2.21% 2.75%+
Net investment loss(3) (0.88) (0.80) (0.92) (1.52) (1.65)+
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 115% 80% 100% 80% 83%
===================================================================================================================================
<CAPTION>
Class B Shares
----------------------------------------------------------------------
Emerging Growth Fund 1999(1) 1998 1997 1996 1995(1)(2)
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $19.60 $21.63 $18.34 $15.04 $11.81
- -----------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.37) (0.30) (0.27) (0.27) (0.35)
Net realized and unrealized gain (loss) 6.46 (1.52) 3.56 3.57 3.58
- -----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 6.09 (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 Year $24.16 $19.60 $21.63 $18.34 $15.04
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 32.00% (8.45)% 17.94% 21.94% 27.43%++
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $129 $91 $80 $39 $11
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(4) 2.31% 2.18% 2.44% 2.96% 3.49%+
Net investment loss(4) (1.63) (1.55) (1.67) (2.27) (2.45)+
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 115% 80% 100% 80% 83%
===================================================================================================================================
</TABLE>
(1) Net investment income (loss) has been calculated using the monthly average
shares method.
(2) For the period from February 21, 1995 (inception date) to October 31, 1995.
(3) 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.
(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 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.
- --------------------------------------------------------------------------------
92 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31:
<TABLE>
<CAPTION>
Class 1 Shares
-------------------------------------------------------------------
Government Fund 1999(1) 1998 1997 1996 1995
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $10.66 $10.58 $10.40 $10.67 $ 9.99
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.54 0.65 0.69 0.70 0.70
Net realized and unrealized gain (loss) (0.87) 0.10 0.17 (0.25) 0.68
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.33) 0.75 0.86 0.45 1.38
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.54) (0.67) (0.68) (0.72) (0.70)
Capital (0.05) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.59) (0.67) (0.68) (0.72) (0.70)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $ 9.74 $10.66 $10.58 $10.40 $10.67
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (3.16)% 7.29% 8.56% 4.58% 14.27%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $160 $209 $241 $287 $329
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.89% 0.88% 0.90% 0.84% 0.83%
Interest expense 0.01 -- -- -- --
Net investment income 5.28 6.11 6.69 6.79 6.84
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 201% 141% 104% 276% 214%
====================================================================================================================================
</TABLE>
(1) Net investment income (loss) has been calculated using the monthly average
shares method.
- --------------------------------------------------------------------------------
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:
<TABLE>
<CAPTION>
Class A Shares
----------------------------------------------------------
Government Fund 1999(1) 1998 1997 1996(2)
====================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $10.66 $10.58 $10.41 $10.32
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.50 0.62 0.66 0.15
Net realized and unrealized gain (loss) (0.87) 0.10 0.17 0.09
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.37) 0.72 0.83 0.24
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.51) (0.64) (0.66) (0.15)
Capital (0.05) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.56) (0.64) (0.66) (0.15)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $ 9.73 $10.66 $10.58 $10.41
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (3.51)% 7.00% 8.35% 2.36%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $23 $17 $14 $11
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.25% 1.12% 1.15% 1.09%+
Interest expense 0.01 -- -- --
Net investment income 4.96 5.78 6.44 6.50+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 201% 141% 104% 276%
====================================================================================================================================
<CAPTION>
Class B Shares
----------------------------------------------------------
Government Fund 1999(1) 1998 1997 1996(2)
====================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $10.66 $10.58 $10.41 $10.32
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.43 0.54 0.59 0.14
Net realized and unrealized gain (loss) (0.87) 0.10 0.17 0.09
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.44) 0.64 0.76 0.23
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.43) (0.56) (0.59) (0.14)
Capital (0.05) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.48) (0.56) (0.59) (0.14)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $ 9.74 $10.66 $10.58 $10.41
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (4.17)% 6.20% 7.55% 2.18%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $17 $14 $12 $14
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.94% 1.87% 1.90% 1.84%+
Interest expense 0.01 -- -- --
Net investment income 4.27 5.04 5.69 5.74+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 201% 141% 104% 276%
====================================================================================================================================
</TABLE>
(1) Net investment income (loss) has been calculated using the monthly average
shares method.
(2) 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.
- --------------------------------------------------------------------------------
94 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31:
<TABLE>
<CAPTION>
Class 1 Shares
--------------------------------------------------------------------
Growth Fund 1999(1) 1998 1997 1996 1995
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $19.59 $20.94 $17.98 $17.46 $15.31
- ------------------------------------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.08 0.13 0.17 0.19 0.16
Net realized and unrealized gain 6.62 2.10 4.33 2.91 3.18
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 6.70 2.23 4.50 3.10 3.34
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.11) (0.17) (0.18) (0.18) (0.16)
Net realized gains (1.82) (3.41) (1.36) (2.40) (1.03)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.93) (3.58) (1.54) (2.58) (1.19)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $24.36 $19.59 $20.94 $17.98 $17.46
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 35.60% 12.54% 26.93% 19.94% 24.01%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $4,475 $3,657 $3,547 $3,005 $2,612
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.76% 0.78% 0.88% 0.93% 1.00%
Net investment income 0.34 0.63 0.86 1.08 1.04
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 37% 113% 165% 202% 230%
====================================================================================================================================
</TABLE>
(1) Net investment income has been calculated using the monthly average shares
method.
- --------------------------------------------------------------------------------
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:
<TABLE>
<CAPTION>
Class A Shares
---------------------------------------------------------
Growth Fund 1999(1) 1998 1997 1996(2)
====================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $19.54 $20.89 $17.96 $16.63
- ------------------------------------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.02 0.05 0.15 0.02
Net realized and unrealized gain 6.60 2.13 4.30 1.31
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 6.62 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 Year $24.29 $19.54 $20.89 $17.96
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 35.24% 12.27% 26.65% 8.00%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $344 $180 $109 $49
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.01% 1.02% 1.13% 1.17%+
Net investment income 0.09 0.38 0.57 0.46+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 37% 113% 165% 202%
====================================================================================================================================
<CAPTION>
Class B Shares
---------------------------------------------------------
Growth Fund 1999(1) 1998 1997 1996(2)
====================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $19.37 $20.75 $17.93 $16.63
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) (0.14) (0.11) 0.01 (0.01)
Net realized and unrealized gain 6.54 2.14 4.28 1.31
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 6.40 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 Year $23.95 $19.37 $20.75 $17.93
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 34.31% 11.43% 25.66% 7.82%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $357 $182 $126 $74
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.76% 1.75% 1.88% 1.93%+
Net investment loss (0.65) (0.35) (0.16) (0.29)+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 37% 113% 165% 202%
====================================================================================================================================
</TABLE>
(1) Net investment income (loss) has been calculated using the monthly average
shares method.
(2) For the period from August 18, 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.
- --------------------------------------------------------------------------------
96 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31:
<TABLE>
<CAPTION>
Class 1 Shares
---------------------------------------------------------------------
Growth and Income Fund 1999(1) 1998 1997 1996 1995
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $18.53 $20.10 $18.11 $16.95 $15.77
- ------------------------------------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.09 0.18 0.24 0.31 0.36
Net realized and unrealized gain 3.60 1.70 4.23 2.94 2.72
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 3.69 1.88 4.47 3.25 3.08
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.08) (0.20) (0.30) (0.34) (0.30)
Net realized gains (0.78) (3.25) (2.18) (1.75) (1.60)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.86) (3.45) (2.48) (2.09) (1.90)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $21.36 $18.53 $20.10 $18.11 $16.95
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 20.27% 10.90% 27.35% 20.58% 22.45%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $1,122 $1,079 $1,097 $943 $828
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.84% 0.83% 0.88% 0.91% 0.96%
Net investment income 0.43 0.90 1.25 1.78 2.27
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 53% 34% 93% 121% 117%
====================================================================================================================================
</TABLE>
(1) Net investment income has been calculated using the monthly average shares
method.
- --------------------------------------------------------------------------------
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:
<TABLE>
<CAPTION>
Class A Shares
---------------------------------------------------------
Growth and Income Fund 1999(1) 1998 1997 1996(2)
====================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $18.53 $20.10 $18.11 $17.19
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) 0.03 (0.02) 0.20 0.07
Net realized and unrealized gain 3.60 1.85 4.22 0.91
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 3.63 1.83 4.42 0.98
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.03) (0.15) (0.25) (0.06)
Net realized gains (0.78) (3.25) (2.18) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.81) (3.40) (2.43) (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $21.35 $18.53 $20.10 $18.11
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 19.93% 10.63% 27.04% 5.72%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $181 $124 $80 $33
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.12% 1.07% 1.12% 1.16%+
Net investment income 0.15 0.63 0.96 1.78+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 53% 34% 93% 121%
====================================================================================================================================
<CAPTION>
Class B Shares
---------------------------------------------------------
Growth and Income Fund 1999(1) 1998 1997 1996(2)
====================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $18.48 $20.07 $18.09 $17.19
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) (0.12) (0.01) 0.06 0.04
Net realized and unrealized gain 3.58 1.71 4.22 0.90
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 3.46 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 Year $21.16 $18.48 $20.07 $18.09
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 19.03% 9.85% 26.08% 5.49%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $208 $137 $99 $52
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.87% 1.81% 1.88% 1.91%+
Net investment income (loss) (0.60) (0.09) 0.22 1.05+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 53% 34% 93% 121%
====================================================================================================================================
</TABLE>
(1) Net investment income (loss) has been calculated using the monthly average
shares method.
(2) For the period from August 18, 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.
- --------------------------------------------------------------------------------
98 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31:
<TABLE>
<CAPTION>
Class 1 Shares
----------------------------------------------------
International Equity Fund 1999(1) 1998 1997 1996(2)
====================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $19.06 $18.16 $16.52 $16.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.28) (0.21) (0.17) (0.03)
Net realized and unrealized gain 13.79 1.11 1.81 0.55
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 13.51 0.90 1.64 0.52
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $32.57 $19.06 $18.16 $16.52
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 70.88% 4.96% 9.99% 3.25%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $4 $2 $2 $0.2
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(3) 1.68% 1.79% 2.26% 2.50%+
Net investment loss(3) (1.12) (0.99) (1.24) (1.31)+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 50% 63% 57% 78%
====================================================================================================================================
</TABLE>
(1) Net investment income (loss) has been calculated using the monthly average
shares method.
(2) For the period from August 8, 1996 (inception date) to October 31, 1996.
(3) If the Adviser 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.
- --------------------------------------------------------------------------------
The Concert Investment Series 99
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31:
<TABLE>
<CAPTION>
Class A Shares
---------------------------------------------------------------------
International Equity Fund 1999(1) 1998 1997 1996 1995(1)(2)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $18.94 $18.14 $16.54 $13.86 $11.81
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.37) (0.27) (0.26) (0.19) (0.14)
Net realized and unrealized gain 13.67 1.07 1.86 2.87 2.19
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 13.30 0.80 1.60 2.68 2.05
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $32.24 $18.94 $18.14 $16.54 $13.86
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 70.22% 4.41% 9.74% 19.34% 16.28%(3)++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $38 $20 $17 $10 $7
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(4) 2.08% 2.25% 2.56% 2.75% 3.64%+
Net investment loss(4) (1.53) (1.46) (1.59) (1.56) (1.40)+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 50% 63% 57% 78% 17%
====================================================================================================================================
</TABLE>
(1) Net investment loss has been calculated using the monthly average shares
method.
(2) For the period from February 21, 1995 (inception date) to October 31, 1995.
(3) For the purpose of calculating performance, the Fund's inception date is
March 17, 1995 (date the Fund's investment strategy was implemented).
(4) 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.
- --------------------------------------------------------------------------------
100 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31:
<TABLE>
<CAPTION>
Class B Shares
-------------------------------------------------------------------
International Equity Fund 1999(1) 1998 1997 1996 1995(1)(2)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $18.44 $17.81 $16.36 $13.79 $11.81
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.53) (0.39) (0.32) (0.26) (0.21)
Net realized and unrealized gain 13.25 1.02 1.77 2.83 2.19
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 12.72 0.63 1.45 2.57 1.98
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $31.16 $18.44 $17.81 $16.36 $13.79
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 68.98% 3.54% 8.93% 18.64% 15.69%(3)++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $41 $18 $13 $8 $2
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(4) 2.79% 3.11% 3.30% 3.50% 4.33%+
Net investment loss(4) (2.26) (2.32) (2.34) (2.31) (2.80)+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 50% 63% 57% 78% 17%
====================================================================================================================================
</TABLE>
(1) Net investment loss has been calculated using the monthly average shares
method.
(2) For the period from February 21, 1995 (inception date) to October 31, 1995.
(3) For the purpose of calculating performance, the Fund's inception date is
March 17, 1995 (date the Fund's investment strategy was implemented).
(4) 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 4.87% (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.
- --------------------------------------------------------------------------------
The Concert Investment Series 101
<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 (Loss) From Operations:
Net investment income (loss)(4) 0.02 0.01 (0.05)
Net realized and unrealized gain 0.57 0.60 0.58
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 0.59 0.61 0.53
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.03 $12.01 $11.97
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return++ 5.16% 5.35% 4.63%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $741 $10,194 $16,955
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(4) 1.24% 1.48% 2.24%
Net investment income (loss) 0.32 0.08 (0.68)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 47% 47% 47%
====================================================================================================================================
</TABLE>
(1) For the period from March 16, 1999 (inception date) to October 31, 1999.
(2) Net investment income (loss) has been calculated using the monthly average
shares method.
(3) For the period from March 15, 1999 (inception date) to October 31, 1999.
(4) The Adviser has waived a portion of its fees for the period ended October
31, 1999. If such fees were not waived, the per share effect on net
investment income (loss) and the expense ratios would have been as follows:
Expense Ratios
Net Investment Income (Loss) Without Fee Waiver
Per Share Decrease and Reimbursement
--------------------------- ------------------
Class 1 $0.05 1.88%+
Class A 0.04 2.12+
Class B 0.04 2.88+
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
102 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31:
<TABLE>
<CAPTION>
Class 1 Shares
---------------------------------------------------------------------
Municipal Bond Fund 1999(1) 1998 1997 1996 1995
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $14.41 $14.21 $13.83 $13.77 $12.89
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.66 0.68 0.69 0.70 0.74
Net realized and unrealized gain (loss) (1.25) 0.31 0.39 0.11 0.87
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.59) 0.99 1.08 0.81 1.61
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.69) (0.66) (0.66) (0.71) (0.73)
Net realized gains (0.23) (0.13) (0.04) (0.04) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.92) (0.79) (0.70) (0.75) (0.73)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $12.90 $14.41 $14.21 $13.83 $13.77
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (4.34)% 7.20% 8.04% 6.09% 12.72%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $75 $94 $104 $119 $119
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.95% 1.01% 0.98% 1.05% 0.96%
Net investment income 4.77 4.77 4.93 5.13 5.58
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 38% 28% 50% 80% 49%
====================================================================================================================================
</TABLE>
(1) Net investment income (loss) has been calculated using the monthly average
shares method.
- --------------------------------------------------------------------------------
The Concert Investment Series 103
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31:
<TABLE>
<CAPTION>
Class A Shares
-------------------------------------------------------
Municipal Bond Fund 1999(1) 1998 1997 1996(2)
====================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $14.41 $14.21 $13.83 $13.78
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.63 0.62 0.65 0.11
Net realized and unrealized gain (loss) (1.26) 0.34 0.40 0.04
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.63) 0.96 1.05 0.15
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.65) (0.63) (0.63) (0.10)
Net realized gains (0.23) (0.13) (0.04) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.88) (0.76) (0.67) (0.10)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $12.90 $14.41 $14.21 $13.83
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (4.58)% 6.93% 7.77% 1.12%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $34 $16 $9 $2
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.18% 1.23% 1.19% 1.30%+
Net investment income 4.54 4.44 4.79 4.82+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 38% 28% 50% 80%
====================================================================================================================================
<CAPTION>
Class B Shares
-------------------------------------------------------
Municipal Bond Fund 1999(1) 1998 1997 1996(2)
====================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $14.39 $14.20 $13.82 $13.78
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.52 0.51 0.54 0.09
Net realized and unrealized gain (loss) (1.25) 0.33 0.40 0.04
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.73) 0.84 0.94 0.13
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.55) (0.52) (0.52) (0.09)
Net realized gains (0.23) (0.13) (0.04) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.78) (0.65) (0.56) (0.09)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $12.88 $14.39 $14.20 $13.82
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (5.30)% 6.10% 6.98% 0.93%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $8 $6 $3 $1
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.93% 1.95% 1.94% 2.05%+
Net investment income 3.79 3.67 4.04 4.06+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 38% 28% 50% 80%
====================================================================================================================================
</TABLE>
(1) Net investment income (loss) has been calculated using the monthly average
shares method.
(2) For the period from August 18, 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.
- --------------------------------------------------------------------------------
104 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Report of Independent Auditors
- --------------------------------------------------------------------------------
The Shareholders and Board of Trustees
of the Concert Investment Series
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Emerging Growth Fund, Government Fund,
Growth Fund, Growth and Income Fund, International Equity Fund, Mid Cap Fund and
Municipal Bond Fund (seven of the Funds comprising the Concert Investment
Series) as of October 31, 1999, and the related statements of operations and
changes in net assets and financial highlights for each of the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1999, by correspondence with the custodians and others. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Emerging Growth Fund, Government Fund, Growth Fund, Growth and Income Fund,
International Equity Fund, Mid Cap Fund and Municipal Bond Fund at October 31,
1999, and the results of their operations, the changes in their net assets, and
the financial highlights for each of the indicated periods, in conformity with
generally accepted accounting principles.
/s/ Ernst & Young LLP
New York, New York
December 15, 1999
- --------------------------------------------------------------------------------
The Concert Investment Series 105
<PAGE>
- --------------------------------------------------------------------------------
Tax Information (unaudited)
- --------------------------------------------------------------------------------
The following October 31, 1999 fiscal year end disclosures are of various tax
benefits that will be reported to shareholders at calendar year end.
The Funds listed below designate for Federal income tax purposes the following
amounts as long-term capital gain dividends paid:
Emerging Growth Fund........................ $ 16,075,602
Growth Fund................................. 371,663,728
Growth and Income Fund...................... 44,568,792
Municipal Bond Fund......................... 1,148,369
99.40% of the dividends from net investment income paid by Municipal Bond Fund
are tax-exempt for regular Federal income tax purposes.
The following percentages of ordinary income distributions have been designated
as qualifying for the dividends received deduction available to corporate
shareholders.
Growth Fund..........................................100.00%
Growth and Income Fund............................... 85.36
The following percentages of ordinary income distributions have been derived
from investments in U.S. Government and Agency Obligations. All or a portion of
the corresponding percentages may be exempt from taxation at the state level.
Government Fund.......................................22.69%
Growth Fund........................................... 6.32
- --------------------------------------------------------------------------------
106 1999 Annual Report to Shareholders
<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
Lawrence B. Weissman
Vice President and Investment Officer
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Adviser and Administrator
SSB Citi Fund Management LLC
Distributor
CFBDS, Inc.
Custodians
PNC Bank
Chase Manhattan Bank, N.A.
Sub-Shareholder Servicing Agent
PFS Shareholder Services
3100 Breckinridge Blvd.
Duluth, Georgia 30099
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.
- --------------------------------------------------------------------------------
The Concert Investment Series 107
<PAGE>
[This page intentionally left blank]
<PAGE>
--------------
The Concert Investment Series BULK RATE
3120 Breckinridge Blvd. U.S. POSTAGE
Duluth, Georgia 30099-0001 PAID
Permit No. 349
Atlanta, GA
--------------
<TABLE>
<CAPTION>
<S> <C> <C>
Securities offered through
If you have any questions, please contact PFS
(C)1999 PFS Investments, Inc. one of our Client Services Representatives Investments Inc.
12/99 1-800-544-5445 Member NASD
</TABLE>
<PAGE>
[GRAPHIC]
THE CONCERT
INVESTMENT SERIES
SELECT PORTFOLIOS
ANNUAL REPORT
OCTOBER 31, 1999
[LOGO OF SMITH BARNEY]
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<PAGE>
Table of Contents
Letter to Shareholders.................................................... 1
The Concert Investment Series Select Portfolios
Select Emerging Growth Portfolio...................................... 3
Select Mid Cap Portfolio.............................................. 5
Select Growth Portfolio............................................... 7
Select Growth and Income Portfolio.................................... 9
Select Government Portfolio........................................... 11
Schedules of Investments.................................................. 13
Statements of Assets and Liabilities...................................... 31
Statements of Operations.................................................. 32
Statements of Changes in Net Assets....................................... 33
Notes to Financial Statements............................................. 34
Financial Highlights...................................................... 39
Report of Independent Auditors............................................ 42
Management of the Series.................................................. 43
<PAGE>
Dear Shareholder:
[PHOTO]
HEATH B. MCLENDON
Chairman Concert Investment Series
We are pleased to present the first annual report for the Concert Investment
Series ("Concert Investment Series") Select Portfolios ("Portfolios") for the
period ended October 31, 1999. We hope you find this report useful and
informative. The performance and investment strategy of each Portfolio is
discussed in greater detail on the following pages. The chart below lists the
total return for the year ended October 31, 1999 for each Portfolio since the
inception.
The Performance of the Concert Investment Series Select Portfolios*
Total Returns From Inception through October 31, 1999:
Portfolio Total Return
- --------- ------------
Select Emerging Growth Portfolio (0.80)%
Select Mid Cap Portfolio 1.10
Select Growth Portfolio 5.10
Select Growth and Income Portfolio 1.00
Select Government Portfolio 1.30
The Concert Investment Series Select Portfolios: Our Core Beliefs
Within the Concert Investment Series Select Portfolios, we emphasize disciplined
investment strategies which are best suited to attain the Portfolios investment
objectives. Our goal is to seek consistent, long-term performance while helping
to manage risk. We believe our focus differentiates these Portfolios and offers
our clients a more complete range of asset allocation choices within the Concert
family of portfolios.
Market Update
Many of the world's financial markets fell a year ago following Russia's
unexpected debt defaults, a major hedge fund crisis and a currency devaluation
in Brazil. Meanwhile, economic upheavals in Asia were also causing serious
repercussions internationally. Yet, by the end of the period, many global stock
and bond markets experienced a dramatic reversal of fortune.
Recently released economic data from the U.S. Commerce Department provided the
first concrete evidence that the U.S. economy may have been structurally
transformed in an extremely positive way during the period. In fact, recent data
suggests to us that the economy has actually been growing more strongly than had
been previously estimated. The term "new economic era" may explain to a large
extent the changes in stock market valuations that have occurred over the past
several years. While short-term market fluctuations may be expected as a result
of Y2K concerns or future U.S. Federal Reserve Board ("Fed") monetary policy
changes, we are guardedly optimistic about our economic future.
U.S. Gross Domestic Product ("GDP") rose 4.8% in the third quarter of 1999; and
economic growth appears to be strong. Meanwhile, inflation and labor cost
pressures remain contained. As of October 31, 1999, the employment cost index
was up just 3.1% from one year ago. Still, Fed Chairman Alan Greenspan has
stated that the economy may still be growing faster than its potential. Hopes
for a loosening of government regulation that would help financial stocks, and
signs of stronger corporate earnings amid moderating economic growth all
combined to boost the U.S. stock market in the second half of October 1999.
In other parts of the world, growth picked up in Europe and Asia, where a great
deal of corporate restructuring is taking place. Europe's new economy has
contributed to the consolidation of businesses and the creation of even stronger
and more competitive European companies. We continue to see the amazing
resilience of the economies of Southeast Asia, as the region returns to economic
stability and growth -- albeit at a slower, yet more sustainable, rate.
The globalization of financial markets has also continued as the New York Stock
Exchange and NASDAQ add more foreign stocks for trading. Investors today have
more
- -----------
* Please note that the performance figures shown above represent past
performance that is not indicative of future results. The investment return
and the principle value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the
original cost.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 1
<PAGE>
investment options than ever before as trading hours expand, allowing for
broader investor participation and pursuit of investment opportunities.
The Internet age has dawned. Increasingly sophisticated financial transactions
are being handled electronically with the click of a "mouse" regardless of
whether you are in New York, Buenos Aires or Timbuktu. Although near-term issues
persist, we believe that the development of the "Information Superhighway" will
remain a powerful driver of share prices.
The Internet is gaining millions of users monthly and many of these people will
become active on-line consumers. Moreover, Dell, a global computer systems
company, estimates that 15% of all U.S. Gross Domestic Product ("GDP") could
soon come from Internet electronic commerce. There is no shortage of companies
willing to provide the systems and services necessary to facilitate online
transactions. We expect e-commerce to represent an outstanding investment
opportunity as companies attempt to increase their productivity through online
sourcing and more direct distribution. E-commerce generally conjures up images
of consumers buying books or smaller items on the Internet; however, business-
to-business e-commerce is expanding as well. Traditional industrial
manufacturing companies are aggressively moving toward e-commerce as a means to
boost efficiency.
Thank you for investing in the Concert Investment Select Portfolios. We remain
committed to seeking to provide our shareholders with competitive performance in
the years ahead, and look forward to helping you pursue your financial goals.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
Concert Investment Series
November 15, 1999
- --------------------------------------------------------------------------------
2 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Select Emerging Growth Portfolio
- --------------------------------------------------------------------------------
The Select Emerging Growth Portfolio ("Portfolio") seeks capital appreciation.
The Portfolio 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]
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: BS, Chemical Engineering, University of Bombay; MS, Chemical
Engineering, University of Connecticut; MBA, Finance, University of Connecticut.
Portfolio Update
The Portfolio commenced operations on September 15, 1999. Since inception
through October 31, 1999, the Portfolio returned a negative 0.80%. In managing
the Portfolio, our stock selection process favors companies that are able to
grow earnings above consensus expectations, yet offer competitive relative
value. In order to achieve consistent performance, the Portfolio is managed to
mirror the overall risk and sector weightings of the universe of smaller-sized
companies.
Small-cap stocks have underperformed large-cap stocks significantly over the
last several months. A small-cap rally was beginning to develop in the second
quarter of 1999 but has since been stalled as a result of the Fed's monetary
policy of tightening and rising interest rates. In our opinion, as Y2K fears
dissipate and interest rates stabilize over the next several months, small cap
stocks may well resume their comeback and make up the huge deficit they are
currently experiencing relative to large-cap stocks.
On December 13, 1999, the Board of Directors of the Concert Investment Series
approved a proposal to change the name of the Select Emerging Growth Fund to the
Select Small Cap Fund. The Fund shall file a post-effective amendment with the
Securities and Exchange Commission which shall make this name change effective
in January 2000.
- -------------
* The Portfolio'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 Portfolio 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 -- Select Portfolios 3
<PAGE>
- --------------------------------------------------------------------------------
Select Emerging Growth Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance
- --------------------------------------------------------------------------------
Net Asset Value
----------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Return++
================================================================================
10/31/99 $10.00 $9.92 $0.00 $0.00 (0.80)%+
================================================================================
It is the Portfolio's policy to distribute dividends and capital gains, if any,
annually.
- --------------------------------------------------------------------------------
Average Annual Total Return:
- --------------------------------------------------------------------------------
Total
Return
================================================================================
9/15/99* through 10/31/99 (0.80)%
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Return
- --------------------------------------------------------------------------------
Total
Return
================================================================================
9/15/99* through 10/31/99 (0.80)%
================================================================================
++ Assumes reinvestment of all dividends and capital gain distributions.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
* Commencement of operations.
- --------------------------------------------------------------------------------
4 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Select Mid Cap Portfolio
- --------------------------------------------------------------------------------
The Select Mid Cap Portfolio ("Portfolio") seeks capital appreciation. The
Portfolio 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 ("S&P 400") at the time of
investment.* (The S&P 400 is a capitalization-weighted index that measures the
performance of the mid-range sector of the U.S. stock market.)
Portfolio Manager:
Lawrence B. Weissman, CFA
[PHOTO]
Investment experience:
13 years
Background: Joined Salomon Smith Barney in 1997. Previously with Neuberger &
Berman and TIAA-CREF.
Education: BS, Cornell University; MBA, Columbia University
Portfolio Update
The Portfolio commenced operation on September 15, 1999. Since its inception the
Portfolio has generated a return of 1.10%. The Portfolio is made up of what we
believe to be high-quality, well-positioned companies at competitive prices.
Conceptually, we seek to take advantage of the tremendous price differences
between large- and middle-capitalization companies without taking on a lot of
undue risk. To accomplish this goal, we follow an investment approach that
focuses on companies with significant advantages and excellent competitive
positions in the marketplace. In our view, many of these companies are leaders
in their respective fields and are poised to take advantage of their leadership.
We also look for consistent growth, products with leadership positions, strong
management, positive cash flow and high return on equity as factors in
determining whether to invest in a prospective company.
Because large-capitalization stocks have outperformed middle-capitalization
stocks since the beginning of 1994, the relative valuations of middle-
capitalization companies are at the lowest they have been since 1990. At the
same time, earnings for mid-cap companies relative to large-cap companies have
started to accelerate. Historically, these factors have usually led to
outperformance of mid-cap stocks.
In addition to strong fundamentals, we think that the other drivers of mid-cap
performance include increasing institutional ownership, greater coverage by Wall
Street analysts and higher merger and acquisition activity. In fact, we have
already seen these trends impact many of the stocks we own.
- ------------
* Because the Portfolio invests primarily in medium-capitalization companies,
an investment in the Portfolio 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.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 5
<PAGE>
- --------------------------------------------------------------------------------
Select Mid Cap Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance
- --------------------------------------------------------------------------------
Net Asset Value
-----------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Return++
================================================================================
10/31/99 $10.00 $10.11 $0.00 $0.00 1.10%+
================================================================================
It is the Portfolio's policy to distribute dividends and capital gains, if any,
annually.
- --------------------------------------------------------------------------------
Average Annual Total Return:
- --------------------------------------------------------------------------------
Total
Return
================================================================================
9/15/99* through 10/31/99 1.10%+
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Return
- --------------------------------------------------------------------------------
Total
Return
================================================================================
9/15/99* through 10/31/99 1.10%
================================================================================
++ Assumes reinvestment of all dividends and capital gain distributions.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
* Commencement of operations.
- --------------------------------------------------------------------------------
6 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Select Growth Portfolio
- --------------------------------------------------------------------------------
The Select Growth Portfolio ("Portfolio") seeks capital appreciation. The
Portfolio 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]
Investment experience:
15 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
Portfolio Update
The Portfolio commenced operations on September 15, 1999. From its inception
through the year ended October 31, 1999, the Portfolio posted a total return of
5.10%. While no guarantees can be made, we believe the Portfolio has the
potential to outperform our benchmark over the long-term, but with potentially
lower risk than many other growth-oriented subaccounts.
Although the stock market has been extremely volatile and leadership changes
have been difficult to anticipate, we believe our focus on buying and holding
high quality, well-managed and well-positioned companies over time will help us
to weather severe market turbulence.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 7
<PAGE>
- --------------------------------------------------------------------------------
Select Growth Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance
- --------------------------------------------------------------------------------
Net Asset Value
----------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Return++
================================================================================
10/31/99 $10.00 $10.51 $0.00 $0.00 5.10%+
================================================================================
It is the Portfolio's policy to distribute dividends and capital gains, if any,
annually.
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
Total
Return
================================================================================
9/15/99* through 10/31/99 5.10%+
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Return
- --------------------------------------------------------------------------------
Total
Return
================================================================================
9/15/99* through 10/31/99 5.10%
================================================================================
++ Assumes reinvestment of all dividends and capital gain distributions.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
* Commencement of operations.
- --------------------------------------------------------------------------------
8 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Select Growth and Income Portfolio
- --------------------------------------------------------------------------------
The Select Growth and Income Portfolio ("Portfolio") seeks reasonable growth and
income. The Portfolio invests in a portfolio consisting principally of equity
securities, including convertible securities that provide dividend or interest
income. However, the Portfolio may also invest in non-income-producing
investments for potential appreciation in value. The Portfolio emphasizes U.S.
stocks with large-market capitalizations.
Portfolio Manager:
R. Jay Gerken, CFA
[PHOTO]
Investment experience:
More than 20 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
Portfolio Update
The Portfolio commenced operation on September 15, 1999. From its inception
through October 31, 1999, the Portfolio posted a total return of 1.00%. We
manage the Portfolio with the outlook of a long-term investor. We think that the
Portfolio 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 tradeoff of
growth and value can be described as searching for growth at a reasonable price.
(Growth investing seeks to identify companies that have an expected rate of
earnings growth exceeding that of the economy. Value investing seeks to identify
companies that have stock prices that do not currently reflect the underlying
value of corporate assets or earnings potential and that are selling at a
discount to their underlying intrinsic value.)
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 9
<PAGE>
- --------------------------------------------------------------------------------
Select Growth and Income Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance
- --------------------------------------------------------------------------------
Net Asset Value
---------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Return++
================================================================================
10/31/99 $10.00 $10.10 $0.00 $0.00 1.00%+
================================================================================
It is the Portfolio's policy to distribute dividends and capital gains, if any,
annually.
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
Total
Return
================================================================================
9/15/99* through 10/31/99 1.00%+
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Return
- --------------------------------------------------------------------------------
Total
Return
================================================================================
9/15/99* through 10/31/99 1.00%
================================================================================
++ Assumes reinvestment of all dividends and capital gain distributions.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
* Commencement of operations.
- --------------------------------------------------------------------------------
10 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Select Government Portfolio
- --------------------------------------------------------------------------------
The Select Government Portfolio ("Portfolio") seeks high current return
consistent with the preservation of capital. The Portfolio 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 Conroy
[PHOTO]
Investment experience:
21 years
Background: Formerly a portfolio manager for Equitable Asset Management and
I.N.A. Securities.
Education: BA., Economics, Muhlenberg College
Portfolio Update
The Portfolio commenced operations on September 15, 1999. From its inception
through October 31, 1999, the Portfolio posted a total return of 1.30%. The
chart in the adjacent column shows the yield from U.S. Treasuries as of October
31, 1999:
Yields from U.S. Treasury Securities
10/31/99
--------
3-month U.S. Treasury Bill 5.11%
2-year U.S. Treasury Note 5.82
5-year U.S. Treasury Note 5.98
10-year U.S. Treasury Bond 6.05
30-year U.S. Treasury Bond 6.18
The reporting period was marked by continued strong U.S. economic growth,
historically low inflation and low unemployment. Diminishing liquidity in the
bond market was precipitated by the global financial crisis that reached its
climax in October 1998. Meanwhile, the Fed reversed its three short-term
interest rate movements, with 25-basis-point (100 basis points are equal to one
percent) increases implemented on June 30, August 24 and November 16, 1999,
respectively.
In our view, lackluster performance in fixed income markets has been a direct
result of the Fed's monetary policy actions. While presumably aimed at stock
market exuberance, it is the bond market that has taken the brunt of any
correction on fears of further Fed interest rate increases. The current lack of
inflationary evidence defies a historically tight labor market and reinforces
the influence of technology and the power of global pricing constraints.
We anticipate an economic slowdown through the end of 1999 and into the first
quarter of 2000. In our view, we have probably seen the highs in yields over the
near term, and our investment strategy in the coming months will be to increase
our U.S. Treasury exposure.
- --------------
* 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.
The shorter the time period of your investment, the greater the possibility
of loss. 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.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 11
<PAGE>
- --------------------------------------------------------------------------------
Select Growth and Income Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Historical Performance
- --------------------------------------------------------------------------------
Net Asset Value
---------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Return++
================================================================================
10/31/99 $10.00 $10.10 $0.00 $0.00 1.00%+
================================================================================
It is the Portfolio's policy to distribute dividends and capital gains, if any,
annually.
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
Total
Return
================================================================================
9/15/99* through 10/31/99 1.00%+
================================================================================
- --------------------------------------------------------------------------------
Cumulative Total Return
- --------------------------------------------------------------------------------
Total
Return
================================================================================
9/15/99* through 10/31/99 1.00%
================================================================================
++ Assumes reinvestment of all dividends and capital gain distributions.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
* Commencement of operations.
- --------------------------------------------------------------------------------
10 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments October 31, 1999
- --------------------------------------------------------------------------------
Select Emerging Growth Portfolio
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 100.0%
Auto and Transportation -- 2.1%
498 Airborne Freight Corp. $ 10,707
417 CNF Transportation, Inc. 13,787
285 Federal Mogul Corp. 7,161
1,022 Gentex Corp.* 17,566
579 Hayes Lemmerz International, Inc.* 12,521
681 Mesaba Holdings, Inc.* 7,832
351 SkyWest, Inc. 8,709
691 Superior Industries International, Inc. 18,441
203 US Airways, Inc.* 5,684
- --------------------------------------------------------------------------------
102,408
- --------------------------------------------------------------------------------
Consumer Discretionary -- 18.9%
549 Action Performance Co., Inc.* 11,169
773 Apollo Group, Inc., Class A Shares* 20,339
661 Barnes & Noble, Inc.* 13,757
610 Bebe Stores Inc.* 16,089
508 Blyth Industries, Inc.* 12,732
1,972 The Bombay Company, Inc.* 8,134
712 Borders Group, Inc.* 9,256
696 Brinker International, Inc.* 16,225
529 CD Radio Inc.* 13,489
996 CEC Entertainment, Inc.* 31,934
361 Central Newspapers, Inc., Class A Shares 15,500
605 Checkfree Holdings Corp.* 22,612
930 Church & Dwight Co., Inc. 24,238
356 Claire's Stores, Inc. 6,274
691 Complete Business Solutions, Inc.* 10,019
2,114 CompUSA Inc.* 12,023
330 Consolidated Graphics, Inc.* 6,600
544 Cox Radio, Inc., Class A Shares* 38,080
722 Day Runner, Inc.* 5,325
981 The Dial Corp. 22,931
351 Dollar Tree Stores, Inc.* 15,290
376 Emmis Communications Corp., Class A Shares* 27,119
813 Ethan Allen Interiors, Inc. 28,912
1,703 Family Dollar Stores, Inc. 35,124
737 Family Golf Centers, Inc.* 1,198
996 Furniture Brands International, Inc.* 19,297
1,372 Group Maintenance America Corp.* 13,205
417 Houghton Mifflin Co. 17,670
1,200 Interim Services Inc.* 19,725
1,001 International Game Technology* 18,644
1,078 Jack In The Box Inc.* 25,939
834 Jones Apparel Group, Inc.* 26,375
768 Jostens, Inc. 16,224
855 Launch Media Inc.* 9,298
661 Linens 'n Things, Inc.* 26,275
1,433 Mandalay Resort Group* 26,690
686 Metamor Worldwide, Inc.* 12,948
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 13
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Emerging Growth Portfolio
SHARES SECURITY VALUE
================================================================================
Consumer Discretionary -- 18.9% (continued)
773 Navigant Consulting, Inc.* $ 22,079
376 Outback Steakhouse, Inc.* 8,648
1,052 Pacific Sunwear of California, Inc.* 31,757
534 Performance Food Group Co.* 14,485
732 Pre-paid Legal Services, Inc.* 17,751
529 Regis Corp. 9,820
895 Rent-Way, Inc.* 14,879
874 Ross Stores, Inc. 18,026
1,749 Samsonite Corp.* 10,494
940 Shaw Industries, Inc. 14,511
371 Sotheby's Holdings, Inc., Class A Shares 10,643
534 Starwood Hotels & Resorts Worldwide, Inc. 12,249
498 Tupperware Corporation 9,867
518 United Stationers, Inc.* 13,209
717 Valassis Communications, Inc.* 30,831
646 Williams Sonoma, Inc.* 34,723
- --------------------------------------------------------------------------------
930,631
- --------------------------------------------------------------------------------
Consumer Staples -- 0.7%
717 The Earthgrains Co. 16,357
793 Smithfield Foods, Inc.* 18,041
- --------------------------------------------------------------------------------
34,398
- --------------------------------------------------------------------------------
Finance -- 10.2%
930 Affiliated Managers Group, Inc.* 24,877
2,038 AmeriCredit Corp.* 35,410
234 Astoria Financial Corp. 8,424
361 Commerce Bancorp, Inc. 16,177
651 Community First Bankshares, Inc. 12,389
290 Cullen Frost Bankers, Inc. 8,374
361 Dain Rauscher Corp. 19,381
1,159 Doral Financial Corp. 14,850
564 Eaton Vance Corp. 19,282
534 Fidelity National Financial, Inc. 8,377
341 The FINOVA Group, Inc. 15,025
524 FPIC Insurance Group Inc.* 8,318
269 Greater Bay Bancorp 9,886
539 GreenPoint Financial Corp. 15,361
839 HCC Insurance Holdings, Inc. 9,439
696 HSB Group, Inc. 26,622
468 Hudson United Bancorp 14,712
559 Metris Companies Inc. 19,251
473 National Commerce Bancorp. 11,825
1,027 North Fork Bancorp., Inc. 21,246
696 Oriental Financial Group, Inc. 15,747
569 Peoples Heritage Financial Group, Inc. 10,811
518 Premier Bancshares, Corp. 9,130
569 Queens County Bancorp Inc. 17,888
447 Radian Group Inc. 23,607
356 S1 Corp.* 14,307
330 Silicon Valley Bancshares* 10,766
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
14 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Emerging Growth Portfolio
SHARES SECURITY VALUE
================================================================================
Finance -- 10.2% (continued)
315 Southwest Securities Group, Inc. $ 7,501
854 Sovereign Bancorp, Inc. 7,526
539 Triangle Bancorp, Inc. 12,397
910 United Bankshares Inc. 22,409
488 Zions Bancorp. 28,761
- --------------------------------------------------------------------------------
500,076
- --------------------------------------------------------------------------------
Healthcare -- 15.1%
356 Affymetrix, Inc.* 31,373
1,276 AmeriPath, Inc.* 9,450
468 Andrx Corp.* 22,347
935 Bergen Brunswig Corp., Class A Shares 6,662
864 Biomet, Inc. 26,028
661 CareMatrix Corp.* 1,322
727 Cooper Companies, Inc. 18,175
2,043 Covance Inc.* 19,791
788 Enzon, Inc.* 23,098
498 Forest Laboratories, Inc.* 22,846
376 Genzyme Corp.* 14,382
569 Gilead Sciences Inc.* 35,954
1,210 Hanger Orthopedic Group Inc.* 14,898
463 Human Genome Sciences, Inc.* 40,455
890 ICOS Corp.* 25,532
376 IDEC Pharmaceuticals Corp.* 43,686
1,632 InfoCure Corp.* 25,704
712 Jones Pharma, Inc. 22,072
1,621 Ligand Pharmaceuticals Inc., Class B Shares* 13,272
259 Manor Care Inc.* 4,079
895 Medicis Pharmaceuticals Corp., Class A Shares* 27,298
737 MedQuist Inc.* 23,584
605 Millennium Pharmaceuticals, Inc.* 42,426
681 Mylan Laboratories, Inc. 12,215
534 Ocular Sciences, Inc.* 9,812
1,139 Omnicare, Inc. 10,536
646 Pharmaceutical Product Development, Inc.* 6,500
1,154 PSS World Medical, Inc.* 8,944
615 Quintiles Transnational Corp.* 11,416
651 Res-Care, Inc.* 9,480
818 Roberts Pharmaceutical Corp.* 26,381
254 Sepracor, Inc.* 21,130
3,777 SICOR Inc.* 17,941
630 STERIS Corp.* 8,387
752 Sunrise Assisted Living, Inc.* 8,272
895 Sybron International Corp.* 21,312
615 Transkaryotic Therapies, Inc.* 28,598
1,062 United Payors & United Providers, Inc.* 17,855
259 Universal Health Services, Inc., Class B Shares* 7,608
- --------------------------------------------------------------------------------
740,821
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 15
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Emerging Growth Portfolio
SHARES SECURITY VALUE
================================================================================
Materials and Processing -- 4.5%
2,008 Airgas, Inc.* $ 19,076
564 Centex Construction Products, Inc. 20,057
386 Cousins Properties, Inc. 12,231
412 Federal Realty Investment Trust 7,493
534 Mueller Industries, Inc.* 17,055
595 NL Industries, Inc. 6,880
402 NVR, Inc.* 16,482
457 Reckson Associates Realty Corp. 8,455
341 The Rouse Co. 7,545
900 Spartech Corp. 25,763
1,098 Stillwater Mining Co.* 22,097
554 Tredegar Corp. 12,153
305 USG Corp. 15,117
559 Vornado Realty Trust 17,713
1,083 Wausau-Mosinee Paper Corp. 13,673
- --------------------------------------------------------------------------------
221,790
- --------------------------------------------------------------------------------
Other Energy -- 2.6%
818 Barrett Resources Corp.* 27,454
691 Basin Exploration Inc.* 11,358
285 Devon Energy Corp. 11,079
839 Friede Goldman International, Inc.* 7,761
498 Ocean Energy, Inc.* 4,575
712 Plains Resources Inc.* 12,238
854 R&B Falcon Corp.* 10,622
905 Rowan Cos., Inc.* 14,084
798 Weatherford International, Inc.* 27,032
- --------------------------------------------------------------------------------
126,203
- --------------------------------------------------------------------------------
Producer Durables -- 4.8%
732 Allied Waste Industries, Inc.* 7,686
452 Briggs & Stratton Corp. 26,414
427 C&D Technology, Inc. 13,717
407 Carlisle Companies, Inc. 13,533
849 CommScope, Inc.* 33,854
559 Crane Co. 11,425
1,189 Howmet International Inc.* 17,538
341 Jacobs Engineering Group, Inc.* 12,105
778 Kellstrom Industries, Inc.* 6,419
752 Kroll - O' Gara Co.* 11,938
600 Lennar Corp. 9,863
722 Manitowoc Co., Inc. 21,570
951 Mettler - Toledo International, Inc.* 28,352
239 Millipore Corp. 7,618
325 Nordson Corp. 14,402
- --------------------------------------------------------------------------------
236,434
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
16 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Emerging Growth Portfolio
SHARES SECURITY VALUE
================================================================================
Technology -- 37.4%
485 24/7 Media, Inc.* $ 20,946
529 Adobe Systems, Inc. 36,997
574 ADTRAN, Inc.* 21,310
61 Allegiance Telecom, Inc.* 4,209
1,291 American Management Systems, Inc.* 33,405
1,017 American Xtal Technology, Inc.* 13,157
1,774 Amkor Technology, Inc.* 35,813
615 Anixter International Inc.* 12,838
1,535 AnswerThink Consulting Group, Inc.* 25,327
1,367 Aspen Technology, Inc.* 17,429
544 Autodesk, Inc. 10,200
696 AVT Corp.* 23,316
386 Black Box Corp.* 19,589
5,784 Brightpoint, Inc.* 45,368
229 BroadVision, Inc.* 16,717
905 C-Cube Microsystems Inc.* 40,272
793 CACI International Inc., Class A Shares* 17,000
513 Carrier Access Corp.* 25,361
290 CIBER, Inc.* 4,731
940 Cognizant Tech Solutions Corp.* 43,181
488 Concentric Network Corp.* 12,505
356 CSK Auto Corp.* 6,363
651 CTS Corp. 36,822
1,530 Cypress Semiconductor Corp.* 39,111
783 The DII Group Inc.* 28,188
529 Diamond Technology Partners, Inc.* 34,187
259 DST Systems, Inc.* 16,495
757 Dycom Industries Inc.* 24,650
935 E*Trade Group, Inc* 22,265
468 Electro Scientific Industries, Inc.* 25,272
402 Electronic Arts, Inc.* 32,487
823 Etec Systems, Inc.* 31,428
890 Fiserv, Inc.* 28,480
808 Genesys Telecommunication Laboratories, Inc.* 39,693
600 Go2Net, Inc.* 42,225
600 Hadco Corp.* 22,050
200 HI/FN Inc.* 7,262
915 IMRglobal Corp.* 9,379
2,974 Informix Corp.* 22,677
132 Infoseek Corp.* 4,183
829 Intelligroup, Inc.* 8,290
874 Inter-Tel, Inc. 13,875
1,327 InterVoice-Brite, Inc.* 16,422
900 ISS Group, Inc.* 34,312
544 Lam Research Corp.* 45,934
549 MasTec, Inc.* 17,980
935 Mastech Corp.* 16,012
2,155 Mentor Graphics Corp.* 17,375
1,032 National Computer Systems, Inc. 39,023
335 Network Appliance, Inc.* 24,790
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 17
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Emerging Growth Portfolio
SHARES SECURITY VALUE
================================================================================
Technology -- 37.4% (continued)
890 Network Associates, Inc.* $ 16,298
102 Network Solutions, Inc.* 12,087
905 NVDIA Corp.* 20,023
615 Omnipoint Corp.* 50,814
1,586 PeopleSoft, Inc.* 23,790
712 Policy Management Systems Corp.* 13,662
437 Powerwave Technologies, Inc.* 28,432
366 QRS Corp.* 20,359
555 Quantum Corp* 8,568
727 Rational Software Corp.* 31,079
1,215 Read-Rite Corp.* 4,784
951 RWD Technologies, Inc.* 7,727
600 Sanchez Computer Associates, Inc.* 13,200
315 Sanmina Corp.* 28,370
696 Sawtek, Inc.* 28,536
452 SCI Systems, Inc.* 22,318
361 SCM Microsystems, Inc.* 17,057
219 SEI Investments Co. 21,346
1,815 SpeedFam - IPEC, Inc.* 20,078
839 Sterling Software, Inc.* 18,406
1,169 Structural Dynamics Research Corp.* 11,544
890 SunGard Data Systems, Inc.* 21,749
788 Superior TeleCom Inc. 12,263
945 Sykes Enterprises, Inc.* 29,177
1,149 USWeb Corp.* 44,524
425 VerticalNet Inc.* 23,800
437 Visual Networks, Inc.* 18,190
1,164 Wind River Systems Inc.* 23,717
235 WorldGate Communications, Inc.* 5,023
534 Xircom, Inc.* 26,934
579 Zebra Technologies Corp.* 31,483
- --------------------------------------------------------------------------------
1,842,239
- --------------------------------------------------------------------------------
Utilities -- 3.7%
712 CenturyTel, Inc. 28,791
635 Global TeleSystems Group, Inc.* 15,200
595 Intermedia Communications, Inc.* 15,470
925 ITC/DeltaCom, Inc.* 22,200
727 MidAmerican Energy Holdings Co.* 24,445
2,384 Paging Network, Inc.* 2,235
1,012 TALK.com, Inc.* 16,129
351 US LEC Corp., Class A Shares* 9,718
651 Western Wireless Corp., Class A Shares* 34,422
407 WinStar Communications, Inc.* 15,797
- --------------------------------------------------------------------------------
184,407
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $4,776,761**) $4,919,407
================================================================================
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
18 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Mid Cap Portfolio
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 88.0%
Airlines -- 0.9%
1,700 Southwest Airlines Co. $ 28,581
- --------------------------------------------------------------------------------
Automobiles -- 1.9%
1,000 Harley-Davidson, Inc. 59,313
- --------------------------------------------------------------------------------
Banking -- 2.2%
500 Commerce Bancorp, Inc. 22,406
900 First Tennessee National Corp. 30,600
700 North Fork Bancorporation, Inc. 14,481
- --------------------------------------------------------------------------------
67,487
- --------------------------------------------------------------------------------
Broadcast Media -- 5.5%
500 Cablevision Systems Corp., Class A Shares* 33,781
900 Entercom Communications Corp.* 44,831
3,200 Imax Corp.* 66,400
850 Spanish Broadcasting System, Inc.* 22,631
100 World Wrestling Federation Entertainment, Inc.* 2,413
- --------------------------------------------------------------------------------
170,056
- --------------------------------------------------------------------------------
Building Materials -- 2.2%
800 Ecolab Inc. 27,050
1,000 Vulcan Materials Co. 41,313
- --------------------------------------------------------------------------------
68,363
- --------------------------------------------------------------------------------
Communications - Equipment -- 4.1%
600 ADC Telecommunications, Inc.* 28,612
800 L-3 Communications Holdings, Inc.* 33,750
1,500 Valassis Communications, Inc.* 64,500
- --------------------------------------------------------------------------------
126,862
- --------------------------------------------------------------------------------
Computer Software -- 12.2%
100 Advent Software, Inc.* 6,013
500 Citrix Systems, Inc.*# 32,062
400 Covad Communications Group, Inc.* 19,200
900 Electronic Arts Inc.* 72,731
1,500 Fiserv, Inc.* 48,000
600 Intuit Inc.* 17,475
30 Juniper Networks, Inc.* 8,269
600 Mercury Interactive Corp.* 48,675
200 Project Software & Development, Inc.* 9,625
600 VERITAS Software Corp.* 64,725
600 Xilinx, Inc.* 47,175
- --------------------------------------------------------------------------------
373,950
- --------------------------------------------------------------------------------
Consumer Products -- 0.5%
600 The Dial Corp. 14,025
- --------------------------------------------------------------------------------
Electronics - Components -- 7.9%
1,100 The AES Corp. 62,081
600 Applied Micro Circuits Corp.* 46,687
700 Lexmark International Group, Inc., Class A Shares* 54,644
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 19
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Mid Cap Portfolio
SHARES SECURITY VALUE
================================================================================
Electronics - Components -- 7.9% (continued)
600 Maxim Integrated Products, Inc.* $ 47,362
1,000 Molex Inc., Class A Shares 33,000
- --------------------------------------------------------------------------------
243,774
- --------------------------------------------------------------------------------
Electronics - Semiconductors -- 2.4%
600 Linear Technology Corp. 41,963
800 Teradyne, Inc.* 30,800
- --------------------------------------------------------------------------------
72,763
- --------------------------------------------------------------------------------
Entertainment -- 1.7%
1,800 Premier Parks Inc. 52,088
- --------------------------------------------------------------------------------
Financial -- 7.6%
1,200 Ambac Financial Group, Inc. 71,700
1,000 Capital One Financial Corp. 53,000
1,300 Countrywide Credit Industries, Inc. 44,119
400 E*TRADE Group, Inc.* 9,525
500 Providian Financial Corp. 54,500
- --------------------------------------------------------------------------------
232,844
- --------------------------------------------------------------------------------
Food Distributors -- 2.4%
1,600 Keebler Foods Co.* 51,100
1,200 The Pepsi Bottling Group, Inc. 21,825
- --------------------------------------------------------------------------------
72,925
- --------------------------------------------------------------------------------
Healthcare - Drugs -- 6.3%
500 Affymetrix, Inc.* 44,062
1,100 Elan Corp. PLC, Sponsored ADR* 28,325
200 Genentech, Inc.* 29,150
1,100 Sepracor Inc.*# 91,506
- --------------------------------------------------------------------------------
193,043
- --------------------------------------------------------------------------------
Healthcare - Managed -- 0.6%
325 Wellpoint Health Networks Inc.* 18,850
- --------------------------------------------------------------------------------
Household Furniture and Apparel -- 0.9%
800 Bed Bath & Beyond Inc.* 26,650
- --------------------------------------------------------------------------------
Insurance -- 2.9%
2,700 Annuity and Life Re (Holdings), Ltd.#@ 63,450
500 XL Capital Ltd., Class A Shares 26,844
- --------------------------------------------------------------------------------
90,294
- --------------------------------------------------------------------------------
Internet Content -- 1.8%
10 Akamai Technologies, Inc.* 1,452
100 CMGI Inc.* 10,944
30 eBay Inc.* 4,054
110 Silknet Software, Inc.* 8,800
300 VerticalNet, Inc.* 16,800
200 Xoom.com, Inc.* 12,500
- --------------------------------------------------------------------------------
54,550
- --------------------------------------------------------------------------------
Machinery -- 1.7%
600 SPX Corp. 50,850
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
20 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Mid Cap Portfolio
SHARES SECURITY VALUE
================================================================================
Manufacturing -- 2.1%
600 Danaher Corp. $ 28,988
700 Waters Corp.* 37,188
- --------------------------------------------------------------------------------
66,176
- --------------------------------------------------------------------------------
Metal Processors -- 1.7%
1,600 Mueller Industries, Inc.* 51,100
- --------------------------------------------------------------------------------
Oilfield Services -- 4.9%
800 Anadarko Petroleum Corp. 24,650
600 BJ Services Co.* 20,587
600 Cooper Cameron Corp.* 23,212
1,000 Diamond Offshore Drilling, Inc. 31,750
600 EOG Resources, Inc. 12,488
1,300 Newfield Exploration Co.* 38,269
- --------------------------------------------------------------------------------
150,956
- --------------------------------------------------------------------------------
Paper -- 1.0%
600 Bowater Inc. 31,500
- --------------------------------------------------------------------------------
Real Estate Investment Trusts -- 1.1%
2,400 IndyMac Mortgage Holdings, Inc. 33,450
- --------------------------------------------------------------------------------
Retail - Apparel -- 1.3%
500 Abercrombie & Fitch Co., Class A Shares* 13,625
1,000 The Children's Place Retail Stores, Inc.* 26,062
- --------------------------------------------------------------------------------
39,687
- --------------------------------------------------------------------------------
Retail - Drug Stores -- 0.7%
800 Duane Reade Inc.* 21,500
- --------------------------------------------------------------------------------
Retail - Specialty -- 1.3%
600 Best Buy Co., Inc.* 33,337
100 eToys Inc.* 5,975
- --------------------------------------------------------------------------------
39,312
- --------------------------------------------------------------------------------
Services and Publishing - Finance -- 2.8%
1,300 FactSet Research Systems Inc.# 86,369
- --------------------------------------------------------------------------------
Telecommunications -- 3.0%
1,300 CenturyTel, Inc. 52,569
200 COLT Telecom Group PLC, Sponsored ADR* 23,700
600 Time Warner Telecom Inc., Class A Shares* 15,112
- --------------------------------------------------------------------------------
91,381
- --------------------------------------------------------------------------------
Transport -- 1.8%
500 Kansas City Southern Industries, Inc. 23,719
2,000 Knightsbridge Tankers Ltd. 30,750
- --------------------------------------------------------------------------------
54,469
- --------------------------------------------------------------------------------
Utilities -- 0.6%
700 The Montana Power Co. 19,906
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $2,606,940) 2,703,074
================================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 21
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Mid Cap Portfolio
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 12.0%
$367,000 Morgan Stanley Dean Witter & Co. dated 10/29/99,
5.190% due 11/1/99; Proceeds at maturity -- $367,159;
(Fully collateralized by U.S. Treasury Notes & Bonds,
6.375% to 8.875% due 3/31/01 to 8/15/17;
Market value -- $375,265)
(Cost -- $367,000) $ 367,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $2,973,940**) $3,070,074
- --------------------------------------------------------------------------------
* Non-income producing security.
# This security has been segregated for open futures contracts.
@ This security serves as collateral for open futures contracts.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
22 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Growth Portfolio
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 93.0%
Aerospace/Defense -- 0.4%
400 The Boeing Co. $ 18,425
- --------------------------------------------------------------------------------
Consumer Distribution -- 5.4%
800 Dayton Hudson Corp. 51,700
1,100 Lowe's Cos., Inc. 60,500
500 The Kroger Co.* 10,406
600 Safeway Inc.* 21,188
1,400 The TJX Cos., Inc. 37,975
1,800 Wal-Mart Stores, Inc. 102,038
- --------------------------------------------------------------------------------
283,807
- --------------------------------------------------------------------------------
Consumer Non-Durables -- 4.1%
900 The Coca-Cola Co. 53,100
700 Colgate-Palmolive Co. 42,350
400 Keebler Foods Co.* 12,775
800 PepsiCo, Inc. 27,750
600 The Procter & Gamble Co. 62,925
300 Unilever NV 20,006
- --------------------------------------------------------------------------------
218,906
- --------------------------------------------------------------------------------
Consumer Services -- 8.8%
300 AMFM Inc.* 21,000
1,700 CBS Corp.* 82,981
3,100 Cendant Corp.* 51,150
700 Clear Channel Communications, Inc.* 56,263
1,000 Cox Communications, Inc.* 45,438
900 MediaOne Group, Inc.* 63,956
1,000 Outdoor Systems, Inc.* 42,375
1,200 Time Warner Inc. 83,625
800 The Walt Disney Co. 21,100
- --------------------------------------------------------------------------------
467,888
- --------------------------------------------------------------------------------
Energy -- 5.6%
600 Anadarko Petroleum Corp. 18,487
300 Atlantic Richfield Co. 27,956
500 BP Amoco PLC, Sponsored ADR 28,875
700 Burlington Resources Inc. 24,412
300 Chevron Corp. 27,394
1,200 Conoco Inc., Class A Shares 32,925
800 Exxon Corp. 59,250
1,000 Halliburton Co. 37,687
400 Mobil Corp. 38,600
- --------------------------------------------------------------------------------
295,586
- --------------------------------------------------------------------------------
Finance -- 16.9%
1,075 Ace Ltd. 20,895
1,500 AMBAC Financial Group, Inc. 89,625
900 American International Group, Inc. 92,644
1,100 Annuity and Life Re (Holdings), Ltd. 25,850
21 Berkshire Hathaway Inc., Class B Shares* 43,890
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 23
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Growth Portfolio
SHARES SECURITY VALUE
================================================================================
Finance -- 16.9% (continued)
1,700 Capital One Financial Corp. $ 90,100
1,200 The Chase Manhattan Corp. 104,850
1,700 Countrywide Credit Industries, Inc. 57,694
1,000 Fannie Mae 70,750
3,400 IndyMac Mortgage Holdings, Inc. 47,388
800 Merrill Lynch & Co., Inc. 62,800
300 Morgan Stanley Dean Witter & Co. 33,094
700 Providian Financial Corp. 76,300
600 Wells Fargo Co. 28,725
1,000 XL Capital Ltd. 53,687
- --------------------------------------------------------------------------------
898,292
- --------------------------------------------------------------------------------
Healthcare -- 14.3%
800 Affymetrix, Inc.* 70,500
600 American Home Products Corp. 31,350
1,000 Bristol-Myers Squibb Co. 76,812
100 Cardinal Health, Inc. 4,312
500 Elan Corp. PLC, Sponsored ADR* 12,875
300 Genentech, Inc.* 43,725
300 Johnson & Johnson 31,425
1,900 Merck & Co., Inc. 151,169
1,400 Monsanto Co. 53,900
1,800 Pfizer Inc. 71,100
2,000 Sepracor Inc.* 166,375
600 Warner-Lambert Co. 47,888
- --------------------------------------------------------------------------------
761,431
- --------------------------------------------------------------------------------
Producer Manufacturing -- 5.9%
500 Applied Materials, Inc.* 44,906
500 Corning Inc. 39,312
800 General Electric Co. 108,450
300 Honeywell Inc. 31,631
2,200 Tyco International Ltd. 87,863
- --------------------------------------------------------------------------------
312,162
- --------------------------------------------------------------------------------
Technology -- 23.9%
20 Akamai Technologies, Inc.* 2,904
900 America Online, Inc.* 116,719
2,100 Cisco Systems, Inc.* 155,400
600 Citrix Systems, Inc.* 38,475
600 Dell Computer Corp.* 24,075
1,000 EMC Corp.* 73,000
1,600 Intel Corp. 123,900
900 International Business Machines Corp. 88,538
1,000 Lexmark International Group, Inc., Class A Shares* 78,063
400 Linear Technology Corp. 27,975
900 Lucent Technologies Inc. 57,825
1,800 Microsoft Corp.* 166,613
400 Nokia Oyj, Sponsored ADR 46,225
1,400 Oracle Corp.* 66,588
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
24 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Growth Portfolio
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
Technology -- 23.9% (continued)
100 QUALCOMM Inc.* $22,275
400 Sprint Corp. (PCS Group) 33,175
800 Sun Microsystems, Inc.* 84,650
600 Xilinx, Inc.* 47,175
100 Yahoo! Inc.* 17,906
- --------------------------------------------------------------------------------
1,271,481
- --------------------------------------------------------------------------------
Transportation -- 0.2%
800 Knightsbridge Tankers Ltd. 12,300
- --------------------------------------------------------------------------------
Utilities -- 7.5%
1,400 The AES Corp.* 79,012
600 AT&T Corp. 28,050
600 Bell Atlantic Corp. 38,962
400 CenturyTel, Inc. 16,175
1,200 MCI WorldCom, Inc.* 102,975
1,200 Qwest Communications International Inc.* 43,200
1,200 SBC Communications Inc. 61,125
400 Sprint Corp. 29,725
- --------------------------------------------------------------------------------
399,224
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $4,685,805) 4,939,502
================================================================================
FACE
AMOUNT SECURITY VALUE
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 7.0%
$373,000 Morgan Stanley Dean Witter & Co. dated 10/29/99,
5.190% due 11/1/99; Proceeds at maturity -- $373,161;
(Fully collateralized by U.S. Treasury Notes and Bonds,
6.375% to 8.875% due 3/31/01 to 8/15/17; Market value --
$381,400) (Cost --$373,000) 373,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $5,058,805**) $5,312,502
- --------------------------------------------------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 25
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Growth and Income Portfolio
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 99.3%
Consumer Durables -- 1.8%
600 Ford Motor Co. $32,925
300 General Motors Corp. 21,075
- --------------------------------------------------------------------------------
54,000
- --------------------------------------------------------------------------------
Consumer Non-Durables -- 6.8%
400 The Coca-Cola Co. 23,600
700 ConAgra, Inc. 18,244
300 General Mills, Inc. 26,157
100 The Gillette Co. 3,619
500 Kimberly-Clark Corp. 31,562
800 PepsiCo, Inc. 27,750
400 The Procter & Gamble Co. 41,950
300 Quaker Oats Co. 21,000
300 V.F. Corp. 9,019
- --------------------------------------------------------------------------------
202,901
- --------------------------------------------------------------------------------
Commercial Services -- 0.9%
300 W.W. Grainger, Inc. 12,712
600 SUPERVALU Inc. 12,600
- --------------------------------------------------------------------------------
25,312
- --------------------------------------------------------------------------------
Consumer Services -- 5.5%
400 H&R Block, Inc. 17,025
600 Comcast Corp., Class A Shares* 25,275
600 Cox Communications, Inc., Class A Shares 27,262
300 Knight-Ridder, Inc. 19,050
300 McDonald's Corp. 12,375
500 The New York Times Co., Class A Shares 20,125
400 The Reader's Digest Association, Inc., Class A Shares 12,900
600 Viacom Inc., Class B Shares* 26,850
200 The Walt Disney Co. 5,275
- --------------------------------------------------------------------------------
166,137
- --------------------------------------------------------------------------------
Electronic Technology -- 17.0%
800 Cisco Systems, Inc.* 59,200
1,000 Dell Computer Corp.* 40,125
500 Telefonaktiebolaget LM Ericsson ADR 21,375
500 General Dynamics Corp. 27,719
500 Hewlett-Packard Co. 37,031
1,200 Intel Corp. 92,925
600 International Business Machines Corp. 59,025
300 Lexmark International Group, Inc.* 23,419
700 Lucent Technologies Inc. 44,975
300 Motorola, Inc. 29,231
400 SCI Systems, Inc.* 19,750
700 Seagate Technology, Inc.* 20,606
700 Unisys Corp.* 16,975
300 United Technologies Corp. 18,150
- --------------------------------------------------------------------------------
510,506
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
26 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Growth and Income Portfolio
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
Energy Minerals -- 4.0%
700 Conoco Inc., Class A Shares $19,206
500 Exxon Corp. 37,031
400 Mobil Corp. 38,600
900 USX - Marathon Group 26,213
- --------------------------------------------------------------------------------
121,050
- --------------------------------------------------------------------------------
Finance -- 17.0%
700 A.G. Edwards, Inc. 21,044
700 The Allstate Corp. 20,125
300 American International Group, Inc. 30,881
600 AXA Financial, Inc. 19,237
700 Bank of America Corp. 45,062
500 The Bear Stearns Companies Inc. & Co. 21,312
400 Chase Manhattan Corp. 34,950
300 CIGNA Corp. 22,425
700 Conseco, Inc. 17,019
200 Fannie Mae 14,150
400 First Union Corp. 17,075
473 Fleet Boston Corp. 20,635
200 Goldman Sachs Group, Inc. 14,200
700 GreenPoint Financial Corp. 19,950
400 The Hartford Financial Services Group, Inc. 20,725
200 J.P. Morgan & Co., Inc. 26,175
700 KeyCorp 19,556
400 Morgan Stanley Dean Witter & Co. 44,125
400 PNC Bank Corp. 23,850
500 Starwood Hotels & Resorts Worldwide, Inc. 11,469
600 UnionBanCal Corp. 26,063
600 Washington Mutual Inc. 21,563
- --------------------------------------------------------------------------------
511,591
- --------------------------------------------------------------------------------
Health Services -- 0.9%
700 Columbia/HCA Healthcare Corp. 16,887
200 Wellpoint Health Networks Inc.* 11,600
- --------------------------------------------------------------------------------
28,487
- --------------------------------------------------------------------------------
Health Technology -- 9.7%
300 Abbott Laboratories 12,112
100 American Home Products Corp. 5,225
300 Amgen Inc.* 23,925
100 Baxter International Inc. 6,487
300 Biogen, Inc. 22,237
400 Bristol-Myers Squibb Co. 30,725
400 Eli Lilly & Co. 27,550
400 Johnson & Johnson 41,900
700 Merck & Co., Inc. 55,694
800 Mylan Laboratories Inc. 14,350
800 Pfizer Inc. 31,600
100 Schering-Plough Corp. 4,950
500 Watson Pharmaceuticals, Inc.* 15,875
- --------------------------------------------------------------------------------
292,630
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 27
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Growth and Income Portfolio
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
Industrial Services -- 0.8%
600 Fluor Corp. $23,925
- --------------------------------------------------------------------------------
Non-Energy Minerals -- 1.0%
500 Alcoa Inc. 30,375
- --------------------------------------------------------------------------------
Processing Industries -- 5.7%
600 Air Products and Chemicals, Inc. 16,500
200 The Dow Chemical Co. 23,650
800 General Electric Co. 108,450
600 Rohm and Haas Co. 22,950
- --------------------------------------------------------------------------------
171,550
- --------------------------------------------------------------------------------
Producer Manufacturing -- 3.0%
500 AlliedSignal Inc. 28,469
500 Caterpillar Inc. 27,625
400 Ingersoll-Rand Co. 20,900
200 Johnson Controls, Inc. 12,150
- --------------------------------------------------------------------------------
89,144
- --------------------------------------------------------------------------------
Retail Trade -- 5.7%
200 Best Buy Co., Inc.* 11,112
500 Federated Department Stores, Inc.* 21,344
500 The Gap, Inc. 18,562
400 The Home Depot, Inc. 30,200
600 The Limited, Inc. 24,675
700 The TJX Companies, Inc. 18,988
800 Wal-Mart Stores, Inc. 45,350
- --------------------------------------------------------------------------------
170,231
- --------------------------------------------------------------------------------
Technology Services -- 6.6%
300 America Online, Inc.* 38,906
500 Automatic Data Processing, Inc. 24,094
500 BMC Software, Inc.* 32,094
500 Electronic Data Systems Corp. 29,250
800 Microsoft Corp.* 74,050
- --------------------------------------------------------------------------------
198,394
- --------------------------------------------------------------------------------
Transportation -- 0.8%
200 AMR Corp. 12,700
700 Southwest Airlines Co. 11,769
- --------------------------------------------------------------------------------
24,469
- --------------------------------------------------------------------------------
Utilities -- 12.1%
700 AT&T Corp. 32,725
100 Bell Atlantic Corp. 6,494
600 BellSouth Corp. 27,000
700 The Coastal Corp. 29,487
400 DTE Energy Co. 13,275
300 Duke Energy Corp. 16,950
600 Edison International 17,775
500 GTE Corp. 37,500
600 MCI Worldcom, Inc.* 51,488
1,400 Niagara Mohawk Holdings Inc.* 22,225
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
28 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Growth and Income Portfolio
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
Utilities -- 12.1% (continued)
500 PECO Energy Co. $19,094
1,421 SBC Communications Inc. 72,382
300 U S West, Inc. 18,319
- --------------------------------------------------------------------------------
364,714
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $2,956,156) 2,985,416
================================================================================
CONVERTIBLE PREFERRED STOCK -- 0.7%
200 Microsoft Corp., Series A, 2.750%
(Cost -- $20,113) 20,289
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $2,976,269**) $3,005,705
================================================================================
* Non-incoming producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 29
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (continued) October 31, 1999
- --------------------------------------------------------------------------------
Select Government Portfolio
FACE
AMOUNT SECURITY VALUE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS -- 100.0%
$5,000,000 U.S. Treasury Notes, 6.000% due 8/15/09
(Cost -- $4,956,250**) $4,995,750
- --------------------------------------------------------------------------------
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
30 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities October 31,1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Select Select Select Select Select
Emerging Mid Cap Growth Growth and Government
Growth Portfolio Portfolio Portfolio Income Portfolio Portfolio
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at cost $4,776,761 $2,606,940 $4,685,805 $2,976,269 $4,956,250
Repurchase agreements, at cost -- 367,000 373,000 -- --
====================================================================================================================================
Investments, at value $4,919,407 $2,703,074 $4,939,502 $3,005,705 $4,995,750
Repurchase agreements, at value -- 367,000 373,000 -- --
Cash 145,016 13,394 73 32,295 18,172
Receivable for securities sold -- 470 50,811 -- --
Receivable for Fund shares sold -- -- 20,197 15,370 --
Dividends and interest receivable 347 2,897 3,968 2,196 61,956
Receivable from broker --
variation margin -- 4,275 -- -- --
Receivable from manager 17,369 14,141 21,891 13,598 15,522
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 5,082,139 3,105,251 5,409,442 3,069,164 5,091,400
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 78,735 38,108 102,091 -- --
Payable for Fund shares purchased 19,186 19,178 8,000 8,000 6,015
Accrued expenses 21,475 16,315 25,800 15,788 18,958
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 119,396 73,601 135,891 23,788 24,973
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $4,962,743 $3,031,650 $5,273,551 $3,045,376 $5,066,427
====================================================================================================================================
NET ASSETS:
Par value of shares of
beneficial interest $ 5,000 $ 2,998 $ 5,020 $ 3,015 $ 5,000
Capital paid in excess of par value 4,994,863 2,996,887 5,015,177 3,012,355 4,994,985
Undistributed net investment income 23,683 3,579 4,069 2,483 26,942
Accumulated net realized loss
from security transactions and
futures contracts (203,449) (65,726) (4,412) (1,913) --
Net unrealized appreciation of
investments and futures contracts 142,646 93,912 253,697 29,436 39,500
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $4,962,743 $3,031,650 $5,273,551 $3,045,376 $5,066,427
====================================================================================================================================
Shares Outstanding 500,032 299,831 502,001 301,491 500,004
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value $9.92 $10.11 $10.51 $10.10 $10.13
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series - Select Portfolios 31
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Period Ended October 31, 1999(a)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Select Select Select Select Select
Emerging Mid Cap Growth Growth and Government
Growth Portfolio Portfolio Portfolio Income Portfolio Portfolio
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 29,323 $ 3,512 $ 5,075 $ 2,093 $ 31,887
Dividends 347 3,454 4,798 3,796 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 29,670 6,966 9,873 5,889 31,887
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Audit and legal 12,000 11,000 10,000 10,000 11,000
Management fees (Note 2) 4,490 2,674 4,582 2,689 3,709
Shareholder communications 3,000 1,000 4,000 4,000 2,500
Shareholder and system servicing fees 2,000 2,125 8,000 1,000 1,000
Custody 2,000 1,200 2,000 16 1,000
Registration fees 1,750 890 1,500 500 2,900
Trustees' fees 52 31 53 26 36
Other 948 323 523 500 800
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 26,240 19,243 30,658 18,731 22,945
Less: Management fee waivers and
expense reimbursements (Note 2) (20,253) (15,856) (24,854) (15,325) (18,000)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 5,987 3,387 5,804 3,406 4,945
- ------------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 23,683 3,579 4,069 2,483 26,942
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FUTURES CONTRACTS (NOTES 3 AND 5):
Realized Gain (Loss) From:
Security transactions (excluding short-term
securities) 36 (65,726) (4,412) (1,913) --
Futures contracts (203,485) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized Loss (203,449) (65,726) (4,412) (1,913) --
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation
of Investments and Futures Contracts:
Beginning of period -- -- -- -- --
End of period 142,646 93,912 253,697 29,436 39,500
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Unrealized Appreciation 142,646 93,912 253,697 29,436 39,500
- ------------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments
and Futures Contracts (60,803) 28,186 249,285 27,523 39,500
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
From Operations $ (37,120) $ 31,765 $253,354 $ 30,006 $ 66,442
====================================================================================================================================
</TABLE>
(a) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
32 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets For the Period Ended October 31, 1999(a)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Select Select Select Select Select
Emerging Mid Cap Growth Growth and Government
Growth Portfolio Portfolio Portfolio Income Portfolio Portfolio
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 23,683 $ 3,579 $ 4,069 $ 2,483 $ 26,942
Net realized loss (203,449) (65,726) (4,412) (1,913) --
Increase in net unrealized
appreciation 142,646 93,912 253,697 29,436 39,500
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
From Operations (37,120) 31,765 253,354 30,006 66,442
- ------------------------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 10):
Net proceeds from sale of shares 5,145,506 3,152,203 5,250,450 3,201,467 5,031,042
Cost of shares reacquired (145,643) (152,318) (230,253) (186,097) (31,057)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 4,999,863 2,999,885 5,020,197 3,015,370 4,999,985
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets 4,962,743 3,031,650 5,273,551 3,045,376 5,066,427
NET ASSETS:
Beginning of period -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
End of period* $4,962,743 $3,031,650 $5,273,551 $3,045,376 $5,066,427
===================================================================================================================================
* Includes undistributed
net investment income of: $ 23,683 $ 3,579 $ 4,069 $ 2,483 $ 26,942
===================================================================================================================================
</TABLE>
(a) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
The Concert Investment Series - Select Portfolios 33
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The Select Emerging Growth, Select Mid Cap, Select Growth, Select Growth and
Income, and Select Government Portfolios ("Portfolios") are separate investment
funds of the Concert Investment Series ("Trust"). The Trust, a Massachusetts
business trust, is registered under the Investment Company Act of 1940, as
amended, as a diversified open-end management investment company and consists of
these Portfolios and seven other separate investment portfolios: Emerging
Growth, Government, Growth, Growth and Income, International Equity, Mid Cap and
Municipal Bond Funds. The financial statements and financial highlights for the
other portfolios are presented in a separate shareholder report.
The significant accounting policies consistently followed by the Trust 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; (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; (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 Portfolios 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
Portfolios on the ex-dividend date; (i) the accounting records of the
Portfolios 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; (l) each Portfolio
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.
- --------------------------------------------------------------------------------
34 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
Also, the Select Mid Cap Portfolio 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
SSB Citi Fund Management Inc. ("SSBC"), a subsidiary of Salomon Smith Barney
Holdings Inc. ("SSBH"), acts as the investment advisor to the Trust.
The Select Emerging Growth, Select Mid Cap, Select Growth and Select Growth and
Income Portfolios pay SSBC an investment management fee calculated at an annual
rate of 0.75% of their average daily net assets and the Select Government
Portfolio pays SSBC an investment management fee calculated at an annual rate of
0.60% of its average daily net assets. These fees are calculated daily and paid
monthly. For the period ended October 31, 1999, SSBC waived all of its
management fees for the Portfolios. In addition, expenses were reimbursed in the
amounts of $15,763, $13,182, $20,272, $12,636 and $14,291 for the Select
Emerging Growth, Select Mid Cap, Select Growth, Select Growth and Income and
Select Government Portfolios, respectively.
CFBDS, Inc. acts as the Portfolios' distributor.
3. Investments
During the period ended October 31, 1999, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding short-
term securities) were as follows:
Purchases Sales
================================================================================
Select Mid Cap Portfolio 2,885,900 $213,234
- --------------------------------------------------------------------------------
Select Growth Portfolio 4,978,630 288,413
- --------------------------------------------------------------------------------
Select Growth and Income Portfolio 3,007,490 29,308
- --------------------------------------------------------------------------------
Select Government Portfolio 4,956,250 -
================================================================================
At October 31, 1999, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were substantially
as follows:
Net Unrealized
Appreciation Depreciation Appreciation
================================================================================
Select Mid Cap Portfolio 214,223 (118,089) 96,134
- --------------------------------------------------------------------------------
Select Growth Portfolio 414,771 (161,074) 253,697
- --------------------------------------------------------------------------------
Select Growth and Income Portfolio 167,024 (137,588) 29,436
- --------------------------------------------------------------------------------
Select Government Portfolio 39,500 -- 39,500
================================================================================
4. Repurchase Agreements
The Portfolios 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 Portfolios require continual
maintenance of the market value of the collateral in amounts at least equal to
the repurchase price.
- --------------------------------------------------------------------------------
The Concert Investment Series - Select Portfolios 35
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
5. Futures Contracts
The Portfolios 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 Portfolio records a realized gain or loss equal to the difference between
the proceeds from (and cost of) the closing transaction and the Portfolio's
basis in the contract. The Portfolio enters into such contracts to hedge a
portion of its portfolio. The Portfolio 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.
At October 31, 1999, the Select Mid Cap Portfolio had the following open futures
contracts:
# of Basis Market Unrealized
Purchased Contracts Contracts Expiration Value Value Loss
================================================================================
MidCap 400 Futures 1 12/99 $202,847 $200,625 $(2,222)
================================================================================
6. Option Contracts
The Portfolios may from time to time enter into option contracts.
Upon the purchase of a put option or a call option by the Portfolio, the premium
paid is recorded as an investment, the value of which is marked-to-market daily.
When a purchased option expires, the Portfolio will realize a loss in the amount
of the cost of the option. When the Portfolio enters into a closing sales
transaction, the Portfolio 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 Portfolio 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 Portfolio
exercises a call option, the cost of the security which the Portfolio purchases
upon exercise will be increased by the premium originally paid.
At October 31, 1999, the Portfolios held no purchased call or put options.
When the Portfolio writes a call option or a put option, an amount equal to the
premium received by the Portfolio is recorded as a liability, the value of which
is marked-to-market daily. When a written option expires, the Portfolio realizes
a gain equal to the amount of the premium received. When the Portfolio enters
into a closing purchase transaction, the Portfolio realizes a gain (or loss if
the cost of the closing purchase transaction exceeds the premium received when
the option was sold) without regard to any unrealized gain or loss on the
underlying security, and the liability related to such option is eliminated.
When a written call option is exercised, the Portfolio realizes a gain or loss
from the sale of the underlying security and the proceeds from such sale are
increased by the premium originally received. When a written put option is
exercised, the amount of the premium originally received will reduce the cost of
the security which the Portfolio purchased upon exercise. When written index
options are exercised, settlement is made in cash.
- --------------------------------------------------------------------------------
36 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
The risk associated with purchasing options is limited to the premium originally
paid. The Portfolio enters into options for hedging purposes. The risk in
writing a covered call option is that the Portfolio gives up the opportunity to
participate in any increase in the price of the underlying security beyond the
exercise price. The risk in writing a covered put option is that the Portfolio
is exposed to the risk of loss if the market price of the underlying security
declines.
During the period ended October 31, 1999, the Portfolios did not write any call
or put options.
7. 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.
8. Securities Traded on a To-Be-Announced Basis
The Portfolios may trade securities on a "to-be-announced" ("TBA") basis.
In a TBA transaction, the Portfolios commit 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
Portfolios 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 October 31, 1999, the Portfolios did not hold any TBA securities.
9. Capital Loss Carryforward
At October 31, 1999, the Fund had, for Federal income tax purposes,
approximately the following unused capital loss carryforwards available to
offset future capital gains expiring on October 31, 2007:
Portfolio Total
================================================================================
Select Emerging Growth Portfolio $203,000
- --------------------------------------------------------------------------------
Select Mid Cap Portfolio 66,000
- --------------------------------------------------------------------------------
Select Growth Portfolio 4,000
- --------------------------------------------------------------------------------
Select Growth and Income Portfolio 2,000
================================================================================
To the extent that these capital carryforward losses are used to offset capital
gains, it is probable that the gains so offset will not be distributed.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 37
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
10. Shares of Beneficial Interest
At October 31, 1999, the Trust had an unlimited number of shares authorized with
a par value of $0.01 per share.
Transactions in shares of each Portfolio were as follows:
Period Ended
October 31, 1999*
================================================================================
Select Emerging Growth Portfolio
Shares sold 515,061
Shares reacquired (15,029)
- --------------------------------------------------------------------------------
Net Increase 500,032
================================================================================
Select Mid Cap Portfolio
Shares sold 315,703
Shares reacquired (15,872)
- --------------------------------------------------------------------------------
Net Increase 299,831
================================================================================
Select Growth Portfolio
Shares sold 525,358
Shares reacquired (23,357)
- --------------------------------------------------------------------------------
Net Increase 502,001
================================================================================
Select Growth and Income Portfolio
Shares sold 320,772
Shares reacquired (19,281)
- --------------------------------------------------------------------------------
Net Increase 301,491
================================================================================
Select Government Portfolio
Shares sold 503,093
Shares reacquired (3,089)
- --------------------------------------------------------------------------------
Net Increase 500,004
================================================================================
* For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
- --------------------------------------------------------------------------------
38 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31:
Select Emerging Growth Portfolio 1999(1)
================================================================================
Net Asset Value, Beginning of Period $ 10.00
- --------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income(2) 0.05
Net realized and unrealized loss (0.13)
- --------------------------------------------------------------------------------
Total Loss From Operations (0.08)
- --------------------------------------------------------------------------------
Less Distributions From:
Net investment income --
- --------------------------------------------------------------------------------
Total Distributions --
- --------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.92
- --------------------------------------------------------------------------------
Total Return++ (0.80)%
- --------------------------------------------------------------------------------
Net Assets, End of Period (000s) $ 4,963
- --------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(2) 1.00%
Net investment income 3.96
- --------------------------------------------------------------------------------
Portfolio Turnover Rate 0%
================================================================================
(1) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
(2) The Manager has agreed to waive all of its fees for the period ended
October 31, 1999. The Manager also reimbursed expenses of $15,763 for the
period ended October 31, 1999. If such fees were not waived and expenses
not reimbursed, the per share effect on net investment income would have
been a decrease of $0.04 and the expense ratio would have been 4.38%
(annualized). As a result of a voluntary expense limitation, the expense
ratios will not exceed 1.00%.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 39
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31:
Select Mid Cap Portfolio 1999(1)
================================================================================
Net Asset Value, Beginning of Period $ 10.00
- --------------------------------------------------------------------------------
Income From Operations:
Net investment income(2) 0.01
Net realized and unrealized gain 0.10
- --------------------------------------------------------------------------------
Total Income From Operations 0.11
- --------------------------------------------------------------------------------
Less Distributions From:
Net investment income --
- --------------------------------------------------------------------------------
Total Distributions --
- --------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.11
- --------------------------------------------------------------------------------
Total Return++ 1.10%
- --------------------------------------------------------------------------------
Net Assets, End of Period (000s) $ 3,032
- --------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(2) 0.95%
Net investment income 1.00
- --------------------------------------------------------------------------------
Portfolio Turnover Rate 8%
================================================================================
Select Growth Portfolio 1999(1)
================================================================================
Net Asset Value, Beginning of Period $ 10.00
- --------------------------------------------------------------------------------
Income From Operations:
Net investment income(3) 0.01
Net realized and unrealized gain 0.50
- --------------------------------------------------------------------------------
Total Income From Operations 0.51
- --------------------------------------------------------------------------------
Less Distributions From:
Net investment income --
- --------------------------------------------------------------------------------
Total Distributions --
- --------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.51
- --------------------------------------------------------------------------------
Total Return++ 5.10%
- --------------------------------------------------------------------------------
Net Assets, End of Period (000s) $ 5,274
- --------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(3) 0.95%
Net investment income 0.67
- --------------------------------------------------------------------------------
Portfolio Turnover Rate 6%
================================================================================
(1) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
(2) For the Select Mid Cap Portfolio, the Manager has agreed to waive all of
its management fees for the period ended October 31, 1999. The Manager has
also reimbursed expenses of $13,182 for the period ended October 31, 1999.
If such fees were not waived and expenses not reimbursed, the per share
effect on net investment income would have been a decrease of $0.05 and the
expense ratio would have been 5.35% (annualized). As a result of a
voluntary expense limitation, the expense ratio will not exceed 0.95%.
(3) For the Select Growth Portfolio, the Manager has agreed to waive all of its
management fees for the period ended October 31, 1999. The Manager has also
reimbursed expenses of $20,272 for the period ended October 31, 1999. If
such fees were not waived and expenses not reimbursed, the per share effect
on net investment income would have been a decrease of $0.05 and the
expense ratio would have been 5.00% (annualized). As a result of a
voluntary expense limitation, the expense ratio will not exceed 0.95%.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
40 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31:
Select Growth and Income Portfolio 1999(1)
================================================================================
Net Asset Value, Beginning of Period $ 10.00
- --------------------------------------------------------------------------------
Income From Operations:
Net investment income(2) 0.01
Net realized and unrealized gain 0.09
- --------------------------------------------------------------------------------
Total Income From Operations 0.10
- --------------------------------------------------------------------------------
Less Distributions From:
Net investment income --
- --------------------------------------------------------------------------------
Total Distributions --
- --------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.10
- --------------------------------------------------------------------------------
Total Return++ 1.00%
- --------------------------------------------------------------------------------
Net Assets, End of Period (000s) $ 3,045
- --------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(2) 0.95%
Net investment income 0.69
- --------------------------------------------------------------------------------
Portfolio Turnover Rate 1%
================================================================================
Select Government Portfolio 1999(1)
================================================================================
Net Asset Value, Beginning of Period $ 10.00
- --------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income(3) 0.05
Net realized and unrealized gain (loss) 0.08
- --------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.13
- --------------------------------------------------------------------------------
Less Distributions From:
Net investment income --
- --------------------------------------------------------------------------------
Total Distributions --
- --------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.13
- --------------------------------------------------------------------------------
Total Return++ 1.30%
- --------------------------------------------------------------------------------
Net Assets, End of Period (000s) $ 5,066
- --------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(3) 0.80%
Net investment income 4.36
- --------------------------------------------------------------------------------
Portfolio Turnover Rate 0%
================================================================================
(1) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
(2) For the Select Growth and Income Portfolio, the Manager has agreed to waive
all of its management fees for the period ended October 31, 1999. The
Manager has also reimbursed expenses of $12,636 for the period ended
October 31, 1999. If such fees were not waived and expenses not reimbursed,
the per share effect on net investment income would have been a decrease of
$0.05 and the expense ratio would have been 5.22% (annualized). As a result
of a voluntary expense limitation, the expense ratio will not exceed 0.95%.
(3) For the Select Government Portfolio, the Manager has agreed to waive all of
its management fees for the period ended October 31, 1999. The Manager has
also reimbursed expenses of $14,291 for the period ended October 31, 1999.
If such fees were not waived and expenses not reimbursed, the per share
effect on net investment income would have been a decrease of $0.04 and the
expense ratio would have been 3.73% (annualized). As a result of a
voluntary expense limitation, the expense ratio will not exceed 0.80%.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 41
<PAGE>
- --------------------------------------------------------------------------------
Report of Independent Auditors
- --------------------------------------------------------------------------------
The Shareholders and Board of Trustees
of the Concert Investment Series:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Select Emerging Growth Portfolio, Select
Government Portfolio, Select Growth Portfolio, Select Growth and Income
Portfolio and Select Mid Cap Portfolio (five of the portfolios constituting the
Concert Investment Series) as of October 31, 1999, and the related statements of
operations and changes in net assets and financial highlights for the period
from September 15, 1999 (commencement of operations) to October 31, 1999. These
financial statements and financial highlights are the responsibility of the
Series' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements and
financial highlights. Our procedures included confirmation of securities owned
as of October 31, 1999 by correspondence with the custodian and others. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Select Emerging Growth Portfolio, Select Government Portfolio, Select Growth
Portfolio, Select Growth and Income Portfolio and Select Mid Cap Portfolio at
October 31, 1999, and the results of their operations, the changes in their net
assets and the financial highlights for the period from September 15, 1999 to
October 31, 1999, in conformity with generally accepted accounting principles.
Ernst & Young LLP
New York, New York
December 15, 1999
- --------------------------------------------------------------------------------
42 1999 Annual Report to Shareholders
<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 Pettit
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
R. Jay Gerken
Vice President and Investment Officer
Larry B. Weissman
Vice President and Investment Officer
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Adviser and Administrator
SSB Citi Fund Management Inc.
Distributor
CFBDS, Inc.
Custodians
PNC Bank
Shareholder Servicing Agent
Smith Barney Private Trust Company
388 Greenwich Street, 22nd Floor
New York, New York 10013
Sub-Shareholder Servicing Agent
PFPC Global Fund Services
P.O. Box 9699
Providence, Rhode Island 02940-9699
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 Trust,
which contains information concerning the Trust's investment policies and
expenses as well as other pertinent information.
- --------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 43
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