<PAGE>
THE CONCERT
INVESTMENT SERIES
---------------------------------
SEMI-ANNUAL REPORT
April 30, 2000
[LOGO OF 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
Government Fund ...................................................... 3
Growth Fund .......................................................... 7
Growth and Income Fund ............................................... 12
International Equity Fund ............................................ 17
Mid Cap Fund ......................................................... 22
Municipal Bond Fund .................................................. 27
Small Cap Fund........................................................ 32
Schedules of Investments ................................................... 36
Statements of Assets and Liabilities ....................................... 70
Statements of Operations.................................................... 74
Statements of Changes in Net Assets......................................... 76
Notes to Financial Statements .............................................. 80
Financial Highlights ....................................................... 91
Management of the Series ...................................................107
<PAGE>
[PHOTO]
HEATH B. MCLENDON
Chairman
Concert Investment Series
Dear Shareholder:
We are pleased to provide the semi-annual report for The Concert Investment
Series for the period ended April 30, 2000. 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 six months ended April 30, 2000, for the
Funds' Class A shares. In this report, we summarize the period's prevailing
economic and market conditions and outline the investment strategy employed by
each Fund.1 We hope you find this report to be useful and informative.
The Performance of The Concert Investment Series Funds
Class A Shares Total Returns for the
Six Months Ended April 30, 2000
Without With Sales
Sales Charges 2 Charges 3
--------------------------------------------------------------------------------
Government Fund 0.72% (3.83)%
Growth Fund 17.09 11.23
Growth and Income Fund 5.60 0.34
International Equity Fund 47.86 40.46
Mid Cap Fund 29.81 23.34
Municipal Bond Fund 2.35 (2.27)
Small Cap Fund 18.35 12.43
Market Commentary
During the six months ended April 30, 2000, the U.S. stock and bond markets
experienced historic levels of volatility, leaving many investors with little or
no clear indication of the future direction of the financial markets. Yet,
despite the ongoing strength and expansion of both the U.S. and global
economies, investor concerns regarding inflation and rising interest rates led
to wide fluctuations in stock prices.
The volatility of the financial markets and speculative trading that contributed
to wide fluctuations in stock prices, also caused many stocks to reach
historically high valuations. Yet, we believe an important convergence may be at
hand. New Economy stocks are becoming more traditional in their business models,
while Old Economy stocks are beginning to incorporate exciting new technologies
into their operations. (The New Economy represents those companies in the
technology, telecommunications and Internet sectors. The Old Economy represents
more established, "blue-chip" companies.) Also, while some New Economy stocks
may represent solid investment opportunities, we believe that many Old Economy
stocks have become undervalued relative to their intrinsic value, opening up
more possibilities for long-term rewards.
Additionally, world markets are increasingly moving in tandem with U.S. markets.
While specific economic factors can have a dramatic impact on local markets, we
believe that it's the underlying strength of each individual company that
determines its price.
Since 1998, worldwide economic underpinnings have improved significantly. The
global credit crunch that had taken hold on financial markets has subsided, with
credit concerns limited to specific situations, but positive on an overall
basis. Moreover, despite continued economic growth, inflationary pressures have
been negligible allowing for increasingly competitive real rates of return
(i.e., yield adjusted for inflation).
In addition, we are experiencing a historically unique circumstance where the
U.S. government is buying back U.S. Treasury securities in order to reduce the
federal debt. This active buying of outstanding U.S. Treasury bonds by the
government has created a situation where Treasury
--------------
1 The information provided represents the opinion of the managers and is not
intended to be a forecast of future events, a guarantee of future results
nor investment advice. Further, there is no assurance that certain
securities will remain in or out of the Funds' various portfolios.
2 These total return figures do not reflect the deduction of a sales charge
for each Fund's Class A shares.
3 These total return figures assume reinvestment of all dividends and reflect
the deduction of the maximum front-end sales charge for each Fund's Class A
shares: up to 5.00% for the Small Cap Fund; Growth and Income Fund;
International Equity Fund; Mid Cap Fund and Growth Fund; up to 4.50% with
respect to the Government and Municipal Funds.
--------------------------------------------------------------------------------
The Concert Investment Series 1
<PAGE>
yields are low compared to the income return available from other debt
instruments. These conditions have added a new complexity to bond investing,
which we believe makes professional money management more valuable today than
ever before.
Expanding yields have resulted in continued strength in the U.S. dollar versus
the euro. (The euro is the single currency of the European Monetary Union that
was adopted by 11 member states on January 1, 1999. These are Belgium, Germany,
Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal
and Finland.) The euro has confounded most economists with its continued
weakness. We contend that its valuation is, in effect, making European stocks
more attractive.
Looking forward, we believe that European economic growth should continue for
the near future. Due to the many changes currently taking place in European
corporations, we maintain a positive outlook on the stocks of many select
European companies. The management of many corporations in the region have
demonstrated, in our view, a commitment to implementing strategies that look to
proactively expand their respective businesses, recognizing the importance of
enhancing shareholder value and the increasing relevance of compensation through
stock options.
In closing thank you for investing in The Concert Investment Series Funds.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
Concert Investment Series
May 26, 2000
--------------------------------------------------------------------------------
2 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
GOVERNMENT FUND
--------------------------------------------------------------------------------
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: More than 24 years
Background: Joined E.F. Hutton Co. Inc. in 1983. Formerly a portfolio manager
for Equitable Asset Management and I.N.A. Securities.
Education: B.A., Economics, Muhlenberg College
Fund Update
For the six months ended April 30, 2000, the Fund's Class A shares returned
negative 3.83% and positive 0.72%, with and without sales charges, respectively.
In comparison, the Lehman Brothers Government Index2 returned 2.25% for the same
period.
In our view, the issues that significantly impacted the performance of the bond
market during the period were the increase in interest rates by the Federal
Reserve Board ("Fed"), the U.S. Treasury's buy back program, reduced inflows,
investor concerns regarding credit quality and the extreme levels of market
volatility and illiquidity.
Yields from U.S. Treasury Securities
The chart below shows the yields on U.S. Treasuries as of April 30, 2000 and
October 31, 1999.
4/30/00 10/31/99
------- ---------
2-year U.S. Treasury Note 6.71% 5.82%
5-year U.S. Treasury Note 6.59 5.98
10-year U.S. Treasury Bond 6.27 6.05
30-year U.S. Treasury Bond 5.99 6.18
The Fed raised interest rates three times for a total of 75 basis points3 during
the reporting period, and more recently, on May 16, 2000, raised interest rates
an additional 50 basis points to 6.50%. Furthermore, the Federal Open Market
Committee, led by Alan Greenspan indicated at the last meeting that it would
implement more rate increases in the months to come, if necessary. (The Federal
Open Market Committee is the committee that sets interest rates and credit
policies for the Federal Reserve System.) In addition, the plan by the U.S.
Treasury to buy back more than $30 billion of its long-term debt obligations,
has led to reduced supply in the market. As such, the price of longer-term bonds
increased in relation to their shorter-term counterparts, as reflected by an
inverted yield curve. (The yield curve is a graphical depiction of the
relationship between the yield on bonds of the same credit quality but different
maturities.) Instead of a "normal" yield curve, with yields rising steadily
along with the maturity of Treasury bonds, the highest yields were for
shorter-term bonds.
The continued strength of the stock markets and the inverted yield curve have
made investing in bonds challenging. However, it is our belief that the actions
of the Fed may ultimately slow economic conditions and make bonds more appealing
to many investors over time. Additionally, we think that long-term rates could
possibly fall to 5.25% by the end of the year.
Please see the next two pages 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.
2 The Lehman Brothers Government Index is a broad-based index of all public
debt obligations of the U.S. government and its agencies that has an
average maturity of roughly nine years. An investor can not invest directly
in an index.
3 A basis point is 0.01% or one one-hundredth of a percent.
--------------------------------------------------------------------------------
The Concert Investment Series 3
<PAGE>
--------------------------------------------------------------------------------
Government Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns(1)
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
4/30/00 $ 9.74 $ 9.56 $0.27 $0.00 $0.00 0.96%+
-------------------------------------------------------------------------------------------------------------------------
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 $7.75 $0.93 $0.05
=========================================================================================================================
-------------------------------------------------------------------------------------------------------------------------
Historical Performance -- Class A Shares
-------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns(1)
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
4/30/00 $ 9.73 $ 9.54 $0.26 $0.00 $0.00 0.72%+
-------------------------------------------------------------------------------------------------------------------------
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 $2.22 $0.00 $0.05
=========================================================================================================================
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
Historical Performance -- Class B Shares
-------------------------------------------------------------------------------------------------------------------------
Net Asset Value
------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns(1)
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
4/30/00 $ 9.74 $ 9.56 $0.22 $0.00 $0.00 0.40%+
-------------------------------------------------------------------------------------------------------------------------
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 $1.94 $0.00 $0.05
=========================================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends monthly and capital gains, if
any, annually.
--------------------------------------------------------------------------------
4 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Government Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
-------------------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/00+ 0.96% 0.72% 0.40%
--------------------------------------------------------------------------------
Year Ended 4/30/00 (1.11) (1.48) (2.19)
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 4.91 N/A N/A
--------------------------------------------------------------------------------
Ten Years Ended 4/30/00 6.76 N/A N/A
--------------------------------------------------------------------------------
Inception* through 4/30/00 6.52 4.11 3.36
--------------------------------------------------------------------------------
With Sales Charges(2)
--------------------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/00+ (5.90)% (3.83)% (4.01)%
--------------------------------------------------------------------------------
Year Ended 4/30/00 (7.79) (5.90) (6.40)
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 3.45 N/A N/A
--------------------------------------------------------------------------------
Ten Years Ended 4/30/00 6.01 N/A N/A
--------------------------------------------------------------------------------
Inception* through 4/30/00 5.95 2.82 2.91
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (4/30/90 through 4/30/00) 92.27%
--------------------------------------------------------------------------------
Class A (Inception* through 4/30/00) 16.21
--------------------------------------------------------------------------------
Class B (Inception* through 4/30/00) 13.13
================================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales 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 shares is April 14, 1987. Inception date for
Class A and B shares is August 8, 1996.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
--------------------------------------------------------------------------------
The Concert Investment Series 5
<PAGE>
--------------------------------------------------------------------------------
Government Fund at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Class 1 Shares of the Government Fund
vs. Lehman Brothers Government Index+
--------------------------------------------------------------------------------
April 1990--April 2000
[GRAPH]
Government Fund Lehman Brothers
Class 1 Government Index
Apr-90 9,326 10,000
Oct-90 10,013 10,593
Oct-91 11,531 12,140
Oct-92 12,605 13,394
Oct-93 13,935 15,152
Oct-94 13,176 14,475
Oct-95 15,055 16,701
Oct-96 15,745 17,556
Oct-97 17,093 19,077
Oct-98 18,338 21,229
Oct-99 17,760 20,973
Apr-00 17,930 21,445
+ Hypothetical illustration of $10,000 invested in Class 1 shares on April
30, 1990, assuming deduction of the maximum 6.75% sales charge at the time
of investment and the reinvestment of dividends and capital gains, if any,
at net asset value through April 30, 2000. The Lehman Brothers 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.
Investment Breakdown*
[GRAPH]
FNMA 1.2%
U.S. Treasury Obligations 19.4%
GNMA 79.4%
U.S. Treasury Securities are debt obligations of the United States Government.
They are secured by the full faith and credit of the Federal Government, and
include such instruments as Treasury bonds, notes and bills.
Mortgage-Backed Securities are debt securities issued by U.S. government
agencies such as the Federal Home Loan Mortgage Corporation ("FHLMC"), Federal
National Mortgage Association ("FNMA") and Government National Mortgage
Association ("GNMA"). They represent thousands of individual home mortgages that
are pooled to form securities. As homeowners pay interest and principal each
month, these payments are passed on to investors. Mortgage-backed securities are
backed by the full faith and credit of the issuing agency.
* As a percentage of total investments.
--------------------------------------------------------------------------------
6 2000 Semi-Annual Report to Shareholders
<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: More than 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 Update1
For the six months ended April 30, 2000, the Fund's Class A shares, with and
without sales charges, returned 11.23% and 17.09%, respectively. In comparison,
the Standard & Poor's 500 Index ("S&P 500")2 returned 7.18% for the same period.
This follows the Fund's fiscal year 1999, where we posted the best relative
performance in its history. We believe we've built a portfolio that should offer
long-term growth with the potential to perform better than our benchmark, but
with what we deem to be at a potentially lower risk than many other
growth-oriented funds. Of course, past performance is not indicative of future
results.
We continue to manage the Fund in line with its investment objective. We
continue to pursue a measured and disciplined approach to investing in what we
consider to be quality companies over the long term.
The Fund is well-diversified across several industry sectors and individual
companies with our largest ten positions making up only 27% 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, the Fund's holdings include several medium-sized,
faster-growing companies which we think may be in a good position to post solid
growth in the future.
As of April 30, 2000, the Fund's largest sector concentrations are in the
technology, finance, and consumer industries. In the technology sector, the Fund
has a neutral weighting versus the S&P 500. Despite a highly volatile stock
market, technology helped the Fund outperform the overall market during the
period. The main contributors to Fund performance were market leaders such as
IBM, Cisco Systems, Oracle, Corning, Intel and Sun Microsystems.
The Fund is overweighted in the finance sector versus the S&P 500 and although
this sector has been under pressure this year due to rising interest rates, we
still believe finance provides the best risk and return tradeoff of any sector
in the market today. As interest rate fears begin to subside, we believe our
investment in proven market leaders such as Chase Manhattan, Bank of America,
Wells Fargo, XL Capital and Aflac may prove fruitful once investors regain
confidence in this sector.
In the consumer services sector, the Fund is overweighted versus the S&P 500.
The largest holdings in this sector were Time Warner, CBS, and MediaOne Group.
All three are either in the midst of merging with other companies or have
announced plans to be acquired. Time Warner may be joining forces with America
Online; CBS with Viacom and MediaOne Group will be acquired by AT&T.
1 References to the securities or percentages thereof held by the Fund,
reflect the holdings of the Fund as of April 30, 2000. After such date this
information may not reflect the Fund's current holdings. Thus, such
information should not be relied upon for current prices of shares or for
trading securities. Further, there is no assurance that the composition of
the Fund's portfolio will not materially change. Please refer to pages 37
through 40 for a complete list and the percentage breakdown of the Fund's
holdings as of April 30, 2000.
2 The S&P 500 is a market capitalization-weighted measure of 500 widely held
common stocks. An investor can not invest directly in an index.
--------------------------------------------------------------------------------
The Concert Investment Series 7
<PAGE>
The Time Warner-AOL mega-merger should combine a traditional content company
with a new media company with combined subscribers of more than 100 million. CBS
is benefiting from strong television, radio and outdoor businesses. In our
opinion, the merger of Viacom and CBS is a truly complementary transaction in
which both companies' assets should seamlessly fit together to form a media and
advertising juggernaut. Going forward, the potential for substantial revenue and
profit expansion from a dynamically vertically integrated company is enormous.
MediaOne Group continues to benefit from new service subscribers in the cable
and telecommunication businesses. The transaction may make AT&T the largest
cable provider in the country.
The Fund's 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. In addition to some of the companies
already mentioned, other holdings in the Fund such as General Electric, Wal-Mart
Stores and AES are all leaders in their industries with enviable track records
and have what we believe are solid future growth prospects.
Please see the next two pages for additional Fund performance information.
--------------------------------------------------------------------------------
8 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Growth Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
===============================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $24.36 $26.80 $0.07 $ 1.58 17.35%+
---------------------------------------------------------------------------------------------------------------
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 $1.69 $15.99
================================================================================================================
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Historical Performance -- Class A Shares
----------------------------------------------------------------------------------------------------------------
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
===============================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $24.29 $26.73 $0.01 $1.58 17.09%+
----------------------------------------------------------------------------------------------------------------
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 $0.34 $8.17
================================================================================================================
<CAPTION>
----------------------------------------------------------------------------------------------------------
Historical Performance -- Class B Shares
----------------------------------------------------------------------------------------------------------
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $23.95 $26.24 $0.00 $1.58 16.67%+
----------------------------------------------------------------------------------------------------------
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 $8.17
==========================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
The Concert Investment Series 9
<PAGE>
--------------------------------------------------------------------------------
Growth Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
----------------------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/00+ 17.35% 17.09% 16.67%
--------------------------------------------------------------------------------
Year Ended 4/30/00 24.45 24.04 23.15
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 25.83 N/A N/A
--------------------------------------------------------------------------------
Ten Years Ended 4/30/00 18.69 N/A N/A
--------------------------------------------------------------------------------
Inception* through 4/30/00 15.39 27.41 26.47
================================================================================
With Sales Charges(2)
----------------------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/00+ 7.38% 11.23% 11.67%
--------------------------------------------------------------------------------
Year Ended 4/30/00 13.89 17.82 18.15
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 23.62 N/A N/A
--------------------------------------------------------------------------------
Ten Years Ended 4/30/00 17.64 N/A N/A
--------------------------------------------------------------------------------
Inception* through 4/30/00 14.61 25.65 26.18
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (4/30/90 through 4/30/00) 454.91%
--------------------------------------------------------------------------------
Class A (Inception* through 4/30/00) 145.15
--------------------------------------------------------------------------------
Class B (Inception* through 4/30/00) 138.51
================================================================================
(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 shares is April 14, 1987. Inception date for
Class A and B shares is August 18, 1996.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
--------------------------------------------------------------------------------
10 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Growth Fund at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Class 1 Shares of the
Growth Fund vs. Standard & Poor's 500 Index+
--------------------------------------------------------------------------------
April 1990--April 2000
[GRAPH]
Growth Fund - Standard & Poor's
Class 1 Shares 500 Index
Apr-90 9,151 10,000
Oct-90 8,384 9,363
Oct-91 11,730 12,492
Oct-92 12,883 13,735
Oct-93 14,712 15,782
Oct-94 15,021 16,392
Oct-95 18,627 20,721
Oct-96 22,340 25,712
Oct-97 28,357 33,966
Oct-98 31,914 41,442
Oct-99 43,275 52,076
Apr-00 50,781 55,815
+ Hypothetical illustration of $10,000 invested in Class 1 shares on April 30,
1990, assuming deduction of the maximum 8.50% sales charge at the time of
investment and the reinvestment of dividends and capital gains, if any, at net
asset value through April 30, 2000. 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*
[GRAPH]
Consumer Non-Durables 3.4%
Consumer Services 7.6%
Energy 4.5%
Finance 16.5%
Health Care 11.5%
Producer Manufacturing 4.8%
Retail 5.3%
Technology 34.1%
Utilities 6.7%
* As a percentage of total common stock.
Investment Allocation as of April 30,2000**
[GRAPH]
1.8% U.S. Government Obligation
1.4% Repurchase Agreement
96.8% Common Stocks
** As a percentage of total investments.
--------------------------------------------------------------------------------
The Concert Investment Series 11
<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 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
Fund Update1
For the six months ended April 30, 2000, the Fund's Class A shares, with and
without sales charges, returned 0.34% and 5.60%, respectively. In comparison,
the Standard & Poor's 500 Index ("S&P 500")2 returned 7.18% for the same period.
We take a long-term approach in selecting the Fund's investments. The Fund, in
our view, 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 valuations represented by price
to earnings, price to cash flow and price to book ratios.3 This two-step
selection process is commonly known as "growth at a reasonable price."
We manage the Fund's sector allocations with the objective of maintaining
weightings that closely reflect the overall market. First, in selecting
investments for the Fund, we measure each stock versus its weighting in the
overall market which results in what we deem to be a well-diversified portfolio.
We continue to manage the Fund as a fully invested portfolio of stocks. Under
most market conditions we intend to continue our substantial commitment to
stocks.
Over the last six months, we have meaningfully increased our holdings in the
technology sector. The Fund's increase in technology holdings corresponds to a
similar increase in the technology weighting of the overall U.S. stock market as
measured by the S&P 500.
During the period, we purchased holdings in technology companies such as Applied
Materials, Compaq Computer, EMC, Sun Microsystems, Teradyne and Texas
Instruments. We also purchased software companies such as Compuware, Oracle,
Siebel Systems and Yahoo!. Additionally, we also added two utility companies,
Enron and Texas Utilities and also Lehman Brothers Holdings, a global financial
services company to the Fund's portfolio.
During the period, we eliminated the Fund's holdings in Niagara Mohawk Holdings
and US West, two utility companies. We also sold the Fund's positions in two
financial companies, UnumProvident and Hartford
-------------
1 References to the securities or percentages thereof held by the Fund, reflect
the holdings of the Fund as of April 30, 2000. After such date this
information may not reflect the Fund's current holdings. Thus, such
information should not be relied upon for current prices of shares or for
trading securities. Further, there is no assurance that the composition of the
Fund's portfolio will not materially change. Please refer to pages 41 through
44 for a complete list and the percentage breakdown of the Fund's holdings as
of April 30, 2000.
2 The S&P 500 is a market capitalization-weighted measure of 500 widely held
common stocks. An investor can not invest directly in an index.
3 The price-to-earnings ratio is the price of a stock divided by its earnings
per share. The price-to-cash flow is the current price divided by cash flow
per share for the last 12 months. Cash flow is a measure of a company's
financial health. It equals cash receipts minus cash payments over a given
period of time. The price-to-book ratio is the price of a stock compared to
the difference between a company's assets and liabilities.
--------------------------------------------------------------------------------
12 2000 Semi-Annual Report to Shareholders
<PAGE>
Financial Services Group, and eliminated the Fund's holdings in Too Inc., a
retailer spun out from The Limited Inc.
The worldwide economy has continued to show signs of improvement over the last
six months. The U.S. economy remains strong, with high employment, business
investment and consumer spending. Economic growth continues throughout most of
Europe and Asia and we believe this growth will continue throughout the year.
The positive side of this economic strength is evident in corporate earnings
reports. Most U.S. companies have continued to report earnings above many
investment professionals' expectations, a trend that has been in place for the
last couple of years. We believe that these stronger earnings have been an
important support to the overall market.
Offsetting these positive factors are the actions of the Federal Reserve Board
("Fed") taken to slow the growth of the U.S. economy and forestall any
inflationary pressures. As a result, the Fed has increased interest rates three
times for a total of 75 basis points4 during the reporting period. Most recently
on May 16, 2000, the Fed raised interest rates an additional 50 basis points to
6.50% and indicated that further rate increases may follow this year.
Please see the next two pages for additional Fund performance information.
---------------
4 A basis point is 0.01% or one one-hundredth of a percent.
--------------------------------------------------------------------------------
The Concert Investment Series 13
<PAGE>
--------------------------------------------------------------------------------
Growth and Income Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
-------------------------------------------------------------------------------------------------------------
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=============================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $21.36 $19.13 $0.04 $ 3.45 5.75%+
-------------------------------------------------------------------------------------------------------------
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 $2.77 $14.89
=============================================================================================================
<CAPTION>
-------------------------------------------------------------------------------------------------------------
Historical Performance -- Class A Shares
-------------------------------------------------------------------------------------------------------------
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=============================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $21.35 $19.12 $0.01 $3.45 5.60%+
-------------------------------------------------------------------------------------------------------------
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 $0.50 $9.66
=============================================================================================================
<CAPTION>
-------------------------------------------------------------------------------------------------------------
Historical Performance -- Class B Shares
-------------------------------------------------------------------------------------------------------------
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=============================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $21.16 $18.85 $0.00 $3.45 5.19%+
-------------------------------------------------------------------------------------------------------------
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 $9.66
=============================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends quarterly and capital gains, if
any, annually.
--------------------------------------------------------------------------------
14 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Growth and Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
--------------------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/00+ 5.75% 5.60% 5.19%
--------------------------------------------------------------------------------
Year Ended 4/30/00 7.49 7.20 6.40
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 19.45 N/A N/A
--------------------------------------------------------------------------------
Ten Years Ended 4/30/00 15.30 N/A N/A
--------------------------------------------------------------------------------
Inception* through 4/30/00 12.81 19.39 18.48
--------------------------------------------------------------------------------
With Sales Charges(2)
--------------------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/00+ (3.22)% 0.34% 0.74%
--------------------------------------------------------------------------------
Year Ended 4/30/00 (1.67) 1.83 1.89
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 17.35 N/A N/A
--------------------------------------------------------------------------------
Ten Years Ended 4/30/00 14.28 N/A N/A
--------------------------------------------------------------------------------
Inception* through 4/30/00 12.05 17.75 18.14
================================================================================
Without Sales Charges(1)
================================================================================
Class 1 (4/30/90 through 4/30/00) 315.23%
--------------------------------------------------------------------------------
Class A (Inception* through 4/30/00) 92.68
--------------------------------------------------------------------------------
Class B (Inception* through 4/30/00) 87.34
================================================================================
(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 shares is April 14, 1987. Inception date for
Class A and B shares 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 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+
--------------------------------------------------------------------------------
[GRAPH]
April 1990--April 2000
Growth & Income -- Class 1 Standard & Poor's 500 Index
Apr-90 9,149 10,000
Oct-90 8,597 9,363
Oct-91 11,265 12,492
Oct-92 12,487 13,735
Oct-93 14,252 15,782
Oct-94 14,324 16,392
Oct-95 17,540 20,721
Oct-96 21,149 25,712
Oct-97 26,933 33,966
Oct-98 29,869 41,442
Oct-99 35,923 52,076
Apr-00 37,989 55,815
+ Hypothetical illustration of $10,000 invested in Class 1 shares on April
30, 1990, assuming deduction of the maximum 8.50% sales charge at the time
of investment and the reinvestment of dividends and capital gains, if any,
at net asset value through April 30, 2000. 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*
-----------------------------------------
[GRAPH]
Consumer Non-Durables 5.1%
Consumer Services 5.5%
Electronic Technology 26.0%
Energy Minerals 4.8%
Finance 13.2%
Health Technology 9.3%
Process Industries 6.3%
Retail Trade 5.5%
Technology Services 6.3%
Utilities 9.2%
Other 8.8%
* As a percentage of total common stock.
Investment Allocation as of April 30, 2000**
--------------------------------------------
[GRAPH]
Common Stock 100.00%
** As a percentage of total investments.
--------------------------------------------------------------------------------
16 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
International Equity Fund
--------------------------------------------------------------------------------
The International Equity Fund ("Fund") seeks total return on its
assets from growth of capital and income. The Fund invests principally in a
diversified portfolio of the equity securities of established non-U.S. issuers.
Please keep in mind that investing internationally involves specific risks 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: More than 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 39 years
Background: Joined Salomon Smith Barney in 1990. Previously with Drexel
Burnham Lambert.
Education: B.S.S., Georgetown University
Fund Update1
For the six months ended April 30, 2000, the Fund's Class A shares, with and
without sales charges, returned 40.46% and 47.86%, respectively. In comparison,
the Morgan Stanley Capital International EAFE Index ("MSCI EAFE Index")2
returned 6.84% for the same period.
The six months ended April 30, 2000, featured volatile global stock markets. The
period began with a sharp uplift of stock markets at the end of 1999, as
investors correctly anticipated a smooth "Y2K" transition. That euphoria gave
way to a sharp downward move in the past two months of the period, especially in
technology-oriented growth stocks, as inflation and interest rate worries have
predominated.
As the period progressed, the prognosis for global economic growth improved.
From many perspectives, the outlook for the global economy is the strongest
witnessed in more than a decade. The U.S. economy has consistently surpassed
forecasts, while the European resurgence and Asian recovery have set the stage
for robust earnings gains in many industries. Concerns over accelerating price
increases, however, have resulted in a number of interest rate increases around
the world. Yet, we see few signs of the desired slowdown of U.S. growth.
The new European currency, the euro, continued to fall sharply during the period
versus the U.S. dollar and Japanese yen despite efforts to stabilize the
currency. (The euro is the single currency of the European Monetary Union that
was adopted by Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the
Netherlands, Austria, Portugal and Finland on January 1, 1999.) Currency
declines reduced Fund returns during the period. Major capital flows out of
Europe likely account for the majority of the weakness. Meanwhile, merger and
acquisitions activity
-------------
1 References to the securities or percentages thereof held by the Fund, reflect
the holdings of the Fund as of April 30, 2000. After such date this
information may not reflect the Fund's current holdings. Thus, such
information should not be relied upon for current prices of shares or for
trading securities. Further, there is no assurance that the composition of
the Fund's portfolio will not materially change. Please refer to pages 45
through 47 for a complete list and the percentage breakdown of the Fund's
holdings as of April 30, 2000.
2 The MSCI EAFE Index is an unmanaged index of common stocks of companies
located in Europe, Australia, New Zealand and the Far East. An investor can
not invest directly in an index.
--------------------------------------------------------------------------------
The Concert Investment Series 17
<PAGE>
continued to color the European investment scene. During November, German
telecommunications operator Mannesmann became the subject of a hostile takeover
battle after resisting the friendly overtures of the United Kingdom's Vodafone.
Several of the telecommunications issues in the Fund (including some Asian
securities) benefited from these developments as the clear value of broadband
capacity, value-added services and enabling technologies crystallized.
European companies across a swath of industries have embarked on merger and
acquisition initiatives. Given the favorable cost of capital and deregulation of
many industries, progressive managements have launched strategic alliances to
build geographic breadth and also to achieve economies of scale. The banking,
telecommunications, insurance, automotive, pharmaceutical and defense industries
among others have been affected by this consolidation trend. In our view, these
mergers and acquisitions should help European managements dramatically improve
the return on investment of their basic businesses.
The Asian markets have shown a range of performances in the period, with
traditionally U.S. interest-rate sensitive markets (i.e. Hong Kong) suffering
sharp declines recently. The Japanese stock market has corrected in sympathy
with the U.S. in recent months after a strong close to 1999. Yet evidence is
growing of a modest Japanese economic rebound following the contractions of the
fourth calendar quarter.
Since mid-March, investor choice has shifted markedly from the trio of emerging
technology, media and telecommunications ("TMT") stocks to large-capitalization
companies with earnings, dividends and relatively stable businesses. Preference
for "defensive" stocks such as health care and financial services and value
shares has occurred. (Value investing consists of identifying securities of
companies that are believed to be undervalued but have good longer term business
prospects.) Investors have taken profits from aggressively positioned and
aggressively financed emerging growth stocks. Whether this rotation is
sustainable is anyone's guess. The spectacular rise of more speculative
securities stretched as far as it did prior to the recent sharp correction, in
our opinion, is the greater surprise rather than the speed and magnitude of
recent declines.
The commercial applications of the Internet and associated technologies continue
to challenge many traditional businesses and sectors. Our investment strategy
continues to emphasize high-quality, well-financed growth stocks across the
entire capitalization spectrum. In our view, strong earnings growth and the
creation of great new business franchises continue to be centered in the broadly
defined technology sector, given the challenges facing a wide range of more
traditional industries. Notably, those technology stocks with substantial
earnings growth have demonstrated the best support during the recent market
rotation. At period-end, our Fund's stock-driven asset allocation was 56% in
Europe, 32% in Asia and 12% in the Americas and emerging markets.
During the period we purchased a position in Canada's BCE Emergis, 65% owned by
BCE and a leader in Canadian B2B commerce. We also purchased a position in
Australia's ERG Ltd., a major factor in smart card technology that has won
several significant public transportation system projects.
We added Amdocs, a telecom billing and customer care software developer with
supplier relationships to wireline and wireless communications entities. We also
added opportunistically to existing positions in Spain's Indra Sistemas, the
leading Iberian systems integrator, and to Energis, the leading competitive
broadband carrier in the U.K.
In Asia, we added to our long-standing major position in Hong Kong's Hutchison
Whampoa. We established positions in Japan's Sharp, based on its strengths in
flat-panel display technologies.
We harvested partial positions in several profitable investments (such as the
U.K.'s COLT Telecom Group and Finland's Nokia Oyj) that had reached our 5% of
assets risk control limit in order to finance our purchases. We also trimmed
positions in Japan's SOFTBANK, as we felt valuations had become excessive. We
reduced our position in Telecom Italia Mobile. We also sold our positions in
Italy's Alleanza and Hong Kong & China Gas due to sluggish earnings.
Please see the next two pages for additional Fund performance information.
--------------------------------------------------------------------------------
18 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
International Equity Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=========================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $32.57 $47.48 $0.00 $0.74 48.09%+
---------------------------------------------------------------------------------------------------------
10/31/99 19.06 32.57 0.00 0.00 70.88
---------------------------------------------------------------------------------------------------------
10/31/98 18.16 19.06 0.00 0.00 4.96
---------------------------------------------------------------------------------------------------------
10/31/97 16.52 18.16 0.00 0.00 9.99
---------------------------------------------------------------------------------------------------------
Inception* -- 10/31/96 16.00 16.52 0.00 0.00 3.25+
=========================================================================================================
Total $0.00 $0.74
=========================================================================================================
</TABLE>
--------------------------------------------------------------------------------
Historical Performance -- Class A Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=========================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $32.24 $46.92 $0.00 $0.74 47.86%+
---------------------------------------------------------------------------------------------------------
10/31/99 18.94 32.24 0.00 0.00 70.22
---------------------------------------------------------------------------------------------------------
10/31/98 18.14 18.94 0.00 0.00 4.41
---------------------------------------------------------------------------------------------------------
10/31/97 16.54 18.14 0.00 0.00 9.74
---------------------------------------------------------------------------------------------------------
10/31/96 13.86 16.54 0.00 0.00 19.34
---------------------------------------------------------------------------------------------------------
Inception* -- 10/31/95 11.81 13.86 0.00 0.00 16.28(2)+
=========================================================================================================
Total $0.00 $0.74
=========================================================================================================
</TABLE>
--------------------------------------------------------------------------------
Historical Performance -- Class B Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=========================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $31.16 $45.15 $0.00 $0.74 47.30%+
---------------------------------------------------------------------------------------------------------
10/31/99 18.44 31.16 0.00 0.00 68.98
---------------------------------------------------------------------------------------------------------
10/31/98 17.81 18.44 0.00 0.00 3.54
---------------------------------------------------------------------------------------------------------
10/31/97 16.36 17.81 0.00 0.00 8.93
---------------------------------------------------------------------------------------------------------
10/31/96 13.79 16.36 0.00 0.00 18.64
---------------------------------------------------------------------------------------------------------
Inception* -- 10/31/95 11.81 13.79 0.00 0.00 15.69(2)+
=========================================================================================================
Total $0.00 $0.74
=========================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
The Concert Investment Series 19
<PAGE>
--------------------------------------------------------------------------------
International Equity Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
--------------------------------------------
Class 1 Class A(2) Class B(2)
================================================================================
Six Months Ended 4/30/00+ 48.09% 47.86% 47.30%
--------------------------------------------------------------------------------
Year Ended 4/30/00 100.55 99.80 98.36
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 N/A 30.35 29.38
--------------------------------------------------------------------------------
Inception* through 4/30/00 34.44 31.05 30.09
================================================================================
With Sales Charges(3)
-----------------------------------------
Class 1 Class A(2) Class B(2)
================================================================================
Six Months Ended 4/30/00+ 35.48% 40.46% 42.30%
--------------------------------------------------------------------------------
Year Ended 4/30/00 83.53 89.77 93.36
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 N/A 29.01 29.31
--------------------------------------------------------------------------------
Inception* through 4/30/00 31.26 29.74 30.09
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (Inception* through 4/30/00) 201.45%
--------------------------------------------------------------------------------
Class A (Inception* through 4/30/00)(2) 299.93
--------------------------------------------------------------------------------
Class B (Inception* through 4/30/00)(2) 285.06
================================================================================
(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 shares is August 8, 1996. Inception date for
Class A and B shares is February 21, 1995.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
--------------------------------------------------------------------------------
20 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
International Equity Fund at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Class A and B Shares of the
International Equity Fund vs. MSCI EAFE Index+
--------------------------------------------------------------------------------
March 1995--April 2000
[GRAPH]
International International
Equity Fund Equity Fund
Class A 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
4/30/00 37,209 38,506 16,767
+ Hypothetical illustration of $10,000 invested in Class A and B shares at
inception on March 17, 1995 (date the Fund's investment strategy was
implemented), assuming deduction of the maximum 5.50% sales charge at the
time of investment for Class A shares and the deduction of the maximum
5.00% CDSC for Class B shares. It also assumes reinvestment of dividends
and capital gains, if any, at net asset value through April 30, 2000. The
Morgan Stanley Capital International ("MSCI") EAFE Index is a composite
portfolio consisting of equity total returns for the countries of Europe,
Australia, New Zealand and 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.
[GRAPH]
Diversification by Country*
----------------------------------------
Canada 12.7%
Finland 3.6%
France 6.6%
Germany 7.6%
Hong Kong 4.1%
Israel 3.2%
Japan 15.4%
Norway 2.9%
Sweden 4.2%
United Kingdom 20.2%
Other 19.5%
* As a percentage of total common stock.
[GRAPH]
Investment Allocation as of April 30, 2000**
------------------------------------------------
Common Stock 91.3%
Repurchase Agreement 8.7%
** As a percentage of total investments.
--------------------------------------------------------------------------------
The Concert Investment Series 21
<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 MidCap 400 Index ("S&P MidCap 400")1 at the time of investment.2
Portfolio Manager:
Lawrence B. Weissman, CFA
Commencement of Operations: March 15, 1999
Investment experience: More than 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 Update3
For the six months ended April 30, 2000, the Fund's Class A shares, with and
without sales charges, returned 23.34% and 29.81%, respectively. In comparison,
the S&P MidCap 400 Index returned 21.26% for the same period. The Fund is made
up of what we believe are high-quality, well-positioned companies as competitive
prices. Conceptually, we seek to take advantage of the tremendous valuation
differences between large- and mid-capitalization companies without taking on a
lot of undue risk.
In seeking to accomplish this goal, we follow an investment approach that
focuses on companies that we perceive have 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 leverage their
leadership positions. We also look for consistent growth, products with
leadership positions, shareholder oriented management, positive cash flow and
high return on equity as factors in determining whether to invest in a
prospective company.
The Fund seeks long-term growth of capital by investing primarily in equity
securities of medium-sized companies. Medium-sized companies are those companies
whose market capitalization is within the market capitalization range of
companies in the S&P MidCap 400 at the time of the Fund's investment. The size
of the companies changes with market conditions and the composition of the S&P
MidCap 400.
Equity securities include exchange traded and over-the-counter common stocks,
preferred stocks, debt securities convertible into equity securities and
warrants and rights relating to equity securities. The Fund may also invest up
to 25% of its assets in securities of foreign issuers both directly and through
depository receipts for those securities.
Since the Fund's inception, we have remained committed to our investment style:
to focus on maintaining a quality-oriented portfolio that we believe will
provide higher returns with potentially lower risk over time. We think our
positive performance during the period was due both to our solid stock
selections and our disciplined and
--------------
1 The S&P MidCap 400 is a market-value weighted index, consisting of 400
domestic stocks chosen for market size, liquidating and industry group
representation. This index is unmanaged and is not subject to the same
management and trading expenses of a mutual fund. An investor can not
invest directly in an index.
2 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.
3 References to the securities or percentages thereof held by the Fund,
reflect the holdings of the Fund as of April 30, 2000. After such date this
information may not reflect the Fund's current holdings. Thus, such
information should not be relied upon for current prices of shares or for
trading securities. Further, there is no assurance that the composition of
the Fund's portfolio will not materially change. Please refer to pages 48
through 51 for a complete list and the percentage breakdown of the Fund's
holdings as of April 30, 2000.
--------------------------------------------------------------------------------
22 2000 Semi-Annual Report to Shareholders
<PAGE>
conservative investment style. Of course, past performance is not indicative of
future results.
From 1995 through the beginning of 1999, large-capitalization companies
significantly outperformed small- and mid-capitalization companies. However,
beginning early in 1999 this began to change as earnings for mid-cap companies
relative to large-cap companies reversed and started to accelerate.
Historically, these factors have led to the outperformance of mid-cap stocks.
Indeed, since the inception of the Fund, mid-cap stocks have outperformed
large-cap stocks as many highly visible large capitalization companies reported
disappointing earnings and had the price of their shares decline. Consensus
earnings estimates from Wall Street suggest to us that mid-cap companies may
continue to grow earnings at a faster pace than large-cap companies leading us
to believe that mid-cap stocks will continue to outperform large-cap stocks for
the next couple of years.
In addition to strong company fundamentals, we think that other potential
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 the technology, finance, and
consumer sectors. Relative to the S&P MidCap 400, the Fund has neutral weighting
in the technology sector, the largest sector of the S&P MidCap 400. In
technology, some of our larger holdings were in companies such as Applied Micro
Circuits, Xilinx and Maxim Integrated Products. These companies remain focused
on communications, which we believe represents the next engine for growth in the
technology market. Applied Micro Circuits, for example, is currently benefiting
from a strong demand for optical systems and a broadening of its customer base.
The Fund is overweighed in the financial sector, and although this sector is
under pressure this year due to rising interest rates, we believe finance
provides the best risk and return tradeoff of any sector in the market today. As
interest rate fears begin to subside, we believe our investment in financial
services companies such as Providian Financial, Ambac Financial Group, and
Capital One Financial should positively contribute to performance over the near
term. Of course, no guarantees can be given that our expectations will be
realized.
The Fund has neutral weighting in the consumer services sector with the Fund's
larger holdings in Imax and Entercom Communications. Imax reported a strong
quarter due in part to the success of "Fantasia," a Disney movie shown
exclusively in Imax theaters. The success of "Fantasia," in our view, should
validate the Imax's theaters as another outlet for major movie studios to run
commercial films. Entercom Communications remains one of the fastest-growing
radio companies, having established market-leading stations in many of the top
markets.
Please see the next two pages for additional Fund performance information. ddd
--------------------------------------------------------------------------------
The Concert Investment Series 23
<PAGE>
--------------------------------------------------------------------------------
Mid Cap Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+(1)
==================================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $12.03 $15.63 $0.00 $0.00 29.93%
------------------------------------------------------------------------------------------------------------------
Inception* -- 10/31/99 11.44 12.03 0.00 0.00 5.16
==================================================================================================================
Total $0.00 $0.00
==================================================================================================================
</TABLE>
--------------------------------------------------------------------------------
Historical Performance -- Class A Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
---------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+(1)
========================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $12.01 $15.59 $0.00 $0.00 29.81%
--------------------------------------------------------------------------------------------------------
Inception* -- 10/31/99 11.40 12.01 0.00 0.00 5.35
========================================================================================================
Total $0.00 $0.00
========================================================================================================
</TABLE>
--------------------------------------------------------------------------------
Historical Performance -- Class B Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+(1)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $11.97 $15.47 $0.00 $0.00 29.24%
----------------------------------------------------------------------------------------------------------
Inception* -- 10/31/99 11.44 11.97 0.00 0.00 4.63
==========================================================================================================
Total $0.00 $0.00
==========================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
---------------------------------------------
Class 1 Class A Class B
===============================================================================
Six Months Ended 4/30/00+ 29.93% 29.81% 29.24%
-------------------------------------------------------------------------------
Year Ended 4/30/00 32.80 32.46 31.55
-------------------------------------------------------------------------------
Inception* through 4/30/00 31.94 31.96 30.74
===============================================================================
With Sales Charges(2)
---------------------------------------------
Class 1 Class A Class B
===============================================================================
Six Months Ended 4/30/00+ 18.86% 23.34% 24.24%
-------------------------------------------------------------------------------
Year Ended 4/30/00 21.54 25.83 26.55
-------------------------------------------------------------------------------
Inception* through 4/30/00 21.95 26.10 27.30
===============================================================================
--------------------------------------------------------------------------------
24 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Mid Cap Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (Inception* through 4/30/00) 36.63%
--------------------------------------------------------------------------------
Class A (Inception* through 4/30/00) 36.75
--------------------------------------------------------------------------------
Class B (Inception* through 4/30/00) 35.23
================================================================================
(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 shares is March 16, 1999. Inception date
for Class A shares is March 15, 1999.
+ Total return is not annualized, as it may not be representative of the
total return for the year. 2000 Semi-Annual Report to Shareholders
--------------------------------------------------------------------------------
The Concert Investment Series 25
<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+
--------------------------------------------------------------------------------
March 1999--April 2000
[GRAPH]
Mid Cap Fund Standard & Poor's
Class A Mid Cap 400 Index
3/15/99 9,500 10,000
Apr-99 9,808 10,797
Jul-99 9,908 11,181
Oct-99 10,008 10,999
Jan-00 11,542 11,918
4/30/00 12,992 13,336
+ 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 April 30, 2000. 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.
[GRAPH]
Industry Diversification of Common Stock*
----------------------------------------------------------------
Commercial Services 4.5%
Consumer Durables 4.4%
Consumer Non-Durables 3.1%
Consumer Services 6.3%
Finance 16.7%
Health Care - Drugs 6.3%
Industrial Services 6.9%
Producer Manufacturing 3.4%
Technology 29.2%
Telecommunications 3.2%
Other 16.0%
* As a percentage of total common stock.
[GRAPH]
Investment Allocation as of April 30, 2000**
-----------------------------------------------
Repurchase Agreement 15.0%
Common Stock 85.0%
** As a percentage of total investments.
--------------------------------------------------------------------------------
26 2000 Semi-Annual Report to Shareholders
<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 six months ended April 30, 2000, the Fund's Class A shares, with and
without sales charges returned a negative 2.27% and a positive 2.35%,
respectively. In comparison, the unmanaged Lehman Brothers Municipal Bond Index2
returned 2.63% for the same period.
The bond markets have changed dramatically over the past several years. In our
view, one central theme of the change, which began following the Asian crisis in
1997, is that capital markets can no longer rely on the U.S. Treasury markets to
provide a near-perfect "benchmark" of trends in interest rates. Before the Asian
crisis, the capital markets relied on the U.S. Treasury market as a measure to
determine what bonds "should" yield.
Under these changing conditions, it may therefore be more difficult for the
Federal Reserve Board ("Fed") to moderate the growth of the economy, since
long-term interest rates may not rise as the Fed puts upward pressure on
short-term rates. The shape of the U.S. Treasury curve just six months ago was
fairly `normal.' (The yield curve is a graphical depiction of the relationship
between the yield on bonds of the same credit quality but different maturities.
A normal yield curve depicts a relationship whereby bonds with longer maturities
have higher yields than bonds with shorter maturities.) Usually, long-term bonds
are more volatile than short-term bonds because of the risks associated with
those bonds with longer maturities.
As of this writing, yields on longer maturity bonds were depressed by a growing
bond shortage, as well as by expectations that the Fed may ultimately be
successful in slowing the economy and diffusing inflationary pressures. The
result is a negatively sloped yield curve for U.S. Treasuries -- instead of the
usual upward-sloping curve, with yields rising steadily along with the maturity
of Treasury bonds, the highest yields during the period have been for
shorter-term bonds.
The U.S. economy continues to generate remarkable non-inflationary growth.
During the reporting period, the Fed has increased short-term interest rates
three times by a total of 75 basis points.3 At the Federal Open Market Committee
meeting on May 16, 2000, the Fed raised interest rates additional 50 basis
points, with an indication that if the Fed perceives a need, there will be
future rate
-------------
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 The Lehman Brothers Municipal Bond Index is a broad measure of the
municipal bond market with maturities of at least one year. An investor can
not invest directly in an index.
3 A basis point is 0.01% or one one-hundredth of a percent.
--------------------------------------------------------------------------------
The Concert Investment Series 27
<PAGE>
increases. (The Federal Reserve Open Market Committee is the committee that sets
interest rates and credit policies for the Federal Reserve System.) The Fed
remains committed to keeping pressure on borrowing costs until the U.S. economy
slows to levels that keep inflation from accelerating.
During the period covered by this report, the municipal bond market performed
competitively, particularly in comparison with non-U.S. Treasury taxable bond
sectors. While municipals were unable to keep pace with decline in yield on U.S.
Treasuries, they were clearly less volatile than many non-U.S. Treasury taxable
bonds which are more susceptible to credit problems and capital market liquidity
issues. In our view, the chief problem with municipal securities continues to be
extremely tight supply. In fact, new issue volume in January 2000 was less than
half of that sold in January 1999.
While no guarantees can be given, we believe that short-term and
intermediate-term municipal yields are likely to increase slightly because of:
. The expected continuing increases in the federal funds rate which would put
upward pressure on all short-term yields. (The federal funds rate is the
interest rate that banks with excess reserves at a Federal Reserve district
bank charge other banks that need overnight loans.)
. A likely increase in municipal bond supplies, which would be felt most
dramatically in the supply of the short end of the yield curve.
. The yield on municipal bonds with longer maturities are not nearly as
attractive as yields offered by short and intermediate term taxable bonds.
The last factor is particularly important in terms of the Fund's current
investment strategy. While the U.S. Treasury yield curve has an inverted shape,
with the highest yields in five years, the municipal yield curve has maintained
a sharp positive slope. In fact, as of this writing, the difference in yield
between 20-year and 30-year municipal bonds is only 10 basis points.
In light of recent investor confusion and volatility in the bond markets,
long-term municipal bond yields have not changed much in the past several
months. We believe that relative stability of many municipal bonds may offer
investors stability in a highly volatile bond market (as well as the higher
volatility that may be associated with other capital markets). Of course, no
guarantees can be given that our expectations will come true.
We also believe that Fed monetary policy action should be sufficient to slow the
economy without triggering higher inflation. The good news is that the economy's
"soft landing" is likely to be at a higher annual growth rate than was
previously thought possible due to the possible emergence of a New Economy where
technological advances can spur growth without inflationary pressures.
At the end of April, 88.4% 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 60.8% of the Fund invested in AAA bonds, the
highest possible rating.
(Standard & Poor's and Moody's are two major credit-reporting bond-rating
agencies.)
Please see the next two pages for additional Fund performance information.
--------------------------------------------------------------------------------
28 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Municipal Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
===============================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $12.90 $12.87 $0.35 $0.00 2.49%+
-----------------------------------------------------------------------------------------------
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 $7.51 $0.44
===============================================================================================
</TABLE>
--------------------------------------------------------------------------------
Historical Performance -- Class A Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
====================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $12.90 $12.87 $0.33 $0.00 2.35%+
----------------------------------------------------------------------------------------------------
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 $2.34 $0.40
====================================================================================================
</TABLE>
--------------------------------------------------------------------------------
Historical Performance -- Class B Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
======================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $12.88 $12.86 $0.28 $0.00 2.03%+
------------------------------------------------------------------------------------------------------
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 $1.96 $0.40
======================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends monthly and capital gains, if
any, annually.
--------------------------------------------------------------------------------
The Concert Investment Series 29
<PAGE>
--------------------------------------------------------------------------------
Municipal Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
---------------------------------------------
Class 1 Class A Class B
===============================================================================
Six Months Ended 4/30/00+ 2.49% 2.35% 2.03%
-------------------------------------------------------------------------------
Year Ended 4/30/00 (3.22) (3.48) (4.16)
-------------------------------------------------------------------------------
Five Years Ended 4/30/00 5.03 N/A N/A
-------------------------------------------------------------------------------
Ten Years Ended 4/30/00 6.42 N/A N/A
-------------------------------------------------------------------------------
Inception* through 4/30/00 6.51 3.56 2.78
===============================================================================
With Sales Charges(2)
---------------------------------------------
Class 1 Class A Class B
===============================================================================
Six Months Ended 4/30/00+ (2.35)% (2.27)% (2.47)%
-------------------------------------------------------------------------------
Year Ended 4/30/00 (7.82) (7.82) (8.30)
-------------------------------------------------------------------------------
Five Years Ended 4/30/00 4.00 N/A N/A
-------------------------------------------------------------------------------
Ten Years Ended 4/30/00 5.90 N/A N/A
-------------------------------------------------------------------------------
Inception* through 4/30/00 6.07 2.28 2.31
===============================================================================
--------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
===============================================================================
Class 1 (4/30/90 through 4/30/00) 86.24%
-------------------------------------------------------------------------------
Class A (Inception* through 4/30/00) 13.81
-------------------------------------------------------------------------------
Class B (Inception* through 4/30/00) 10.68
===============================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales charges with respect to Class 1 and Class A shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class B shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class 1 and Class A shares reflect
the deduction of the current maximum sales charge of 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 shares is July 13, 1988. Inception date for
Class A and B shares is August 18, 1996.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
--------------------------------------------------------------------------------
30 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Municipal Bond fund at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Class 1 Shares of the
Municipal Bond Fund vs. Lehman Brothers Municipal Bond Index+
--------------------------------------------------------------------------------
April 1990--April 2000
[GRAPH]
<TABLE>
<CAPTION>
Lehman
Municipal Bond Brothers Municipal
Fund -- Class 1 Bond Index
<S> <C> <C>
Apr-90 9,523 10,000
Oct-90 9,880 10,601
Oct-91 11,044 11,891
Oct-92 11,881 12,888
Oct-93 13,526 14,704
Oct-94 13,069 14,064
Oct-95 14,731 16,151
Oct-96 15,629 17,072
Oct-97 16,885 18,523
Oct-98 18,099 20,009
Oct-99 17,314 19,316
Apr-00 17,745 20,894
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class 1 shares on April
30, 1990, 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 April 30, 2000. 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.
[GRAPH]
Diversification By State*
--------------------------------
California 4.1%
Colorado 5.5%
Illinois 3.4%
Massachusetts 7.1%
Missouri 4.7%
New Jersey 3.5%
New York 12.8%
Ohio 12.5%
Pennsylvania 7.4%
Texas 14.1%
Other 24.9%
* As a percentage of total investments.
[GRAPH]
Summary of Investments by Combined Ratings
-------------------------------------------------------
Standard Percentage of
Moody's & Poor's Total Investments++
--------------------------------------------------------
Aaa AAA 60.8%
Aa AA 12.2
A A 9.5
Baa BBB 5.9
Ba BB 0.8
VMIG 1 A-1 2.1
NR NR 8.7
-------
100.0%
=======
++ 2.5%, 1.7% and 0.5% were rated as A, AA and AAAby Fitch IBCA, Inc.
--------------------------------------------------------------------------------
The Concert Investment Series 31
<PAGE>
--------------------------------------------------------------------------------
Small Cap Fund
--------------------------------------------------------------------------------
The Small Cap Fund ("Fund"), formerly known as the Emerging Growth Fund, seeks
capital appreciation. The Fund invests primarily in domestic companies, in early
stages of their life cycles, characterised by relatively high earnings growth.1
Portfolio Manager:
Sandip A. Bhagat, CFA
[PHOTO]
Assumed management: December 31, 1997
Investment experience: More than thirteen 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 Update2
For the six months ended April 30, 2000, the Fund's Class A shares returned
12.43% and 18.35%, with and without sales charges, respectively. In comparison,
the Russell 2000 Stock Index3 returned 18.72% for the same period. On December
13, 1999, the Board of Trustees of The Concert Investment Series approved
changing the name of the Emerging Growth Fund to the Small Cap Fund.
During the reporting period, the stock market experienced exceptional
volatility, especially in smaller cap stocks. The Russell 2000 Stock Index
reached an all-time high in February 2000, and declined nearly 25% by the end of
the period. The performance of the overall market was predominantly driven by a
limited number of stocks. The shares of the companies in business-to-consumer,
business-to-business, and human genome were the most volatile during the period.
The Fund's holdings in Cognizant Technology Solutions, a software company, and
Amkor Technology, a semiconductors company, positively contributed to
performance during the reporting period. Each of these companies exhibited
strong earnings growth, above average earnings momentum, and were, in our view,
fairly valued relative to the overall market. The stock that negatively impacted
the Fund's competitive performance during the period was MicroStrategy.
However, we have already seen some signs that market performance is beginning to
expand to more areas. Due to ongoing concerns regarding interest rates, we
anticipate that the market may continue to be marked by increased levels of
volatility. Additionally, we think the performance of the NASDAQ Composite
Index4 may broaden in the near term.
Please see the next two pages for additional Fund performance information.
-------------
1 Because the Fund invests primarily in small-capitalization companies, an
investment in the Fund may be considered more volatile and more susceptible
to loss than an investment in a Fund that invests primarily in larger
capitalization companies. Compared to medium and large, established
companies, small companies are more likely to have limited product lines,
limited capital resources and less experienced management. The prices of
small-capitalization company stocks tend to be more volatile than the price
of larger capitalization company stocks.
2 References to the securities or percentages thereof held by the Fund,
reflect the holdings of the Fund as of April 30, 2000. After such date this
information may not reflect the Fund's current holdings. Thus, such
information should not be relied upon for current prices of shares or for
trading securities. Further, there is no assurance that the composition of
the Fund's portfolio will not materially change. Please refer to pages 60
through 65 for a complete list and the percentage breakdown of the Fund's
holdings as of April 30, 2000.
3 The Russell 2000 Stock Index is an unmanaged index of smaller
capitalization stocks. An investor can not invest in an index.
4 The NASDAQ Composite Index is a market value-weighted index that measures
all domestic and non-U.S. based securities listed on the NASDAQ stock
market. An investor can not invest directly in an index.
--------------------------------------------------------------------------------
32 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Small Cap Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance -- Class 1 Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
========================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $25.33 $23.49 $0.00 $6.66 18.60%+
--------------------------------------------------------------------------------------------------------
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 $8.40
========================================================================================================
</TABLE>
--------------------------------------------------------------------------------
Historical Performance -- Class A Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
====================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $25.08 $23.14 $0.00 $6.66 18.35%+
----------------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------
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 $8.40
====================================================================================================
</TABLE>
--------------------------------------------------------------------------------
Historical Performance -- Class B Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
=================================================================================================
<S> <C> <C> <C> <C> <C>
4/30/00 $24.16 $21.96 $0.00 $6.66 17.91%+
-------------------------------------------------------------------------------------------------
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
-------------------------------------------------------------------------------------------------
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 $8.40
=================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
The Concert Investment Series 33
<PAGE>
--------------------------------------------------------------------------------
Small Cap Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
------------------------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/00+ 18.60% 18.35% 17.91%
--------------------------------------------------------------------------------
Year Ended 4/30/00 25.86 25.35 24.45
--------------------------------------------------------------------------------
Inception* through 4/30/00 17.28 21.20 20.30
================================================================================
With Sales Charges(2)
---------------------------------------------
Class 1 Class A Class B
================================================================================
Six Months Ended 4/30/00+ 8.54% 12.43% 13.37%
--------------------------------------------------------------------------------
Year Ended 4/30/00 15.15 19.06 19.66
--------------------------------------------------------------------------------
Inception* through 4/30/00 14.52 20.01 20.30
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)
--------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class 1 (Inception* through 4/30/00) 81.20%
--------------------------------------------------------------------------------
Class A (Inception* through 4/30/00) 171.33
--------------------------------------------------------------------------------
Class B (Inception* through 4/30/00) 160.99
================================================================================
(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 shares is August 8, 1996. Inception date for
Class A and B shares is February 21, 1995.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
--------------------------------------------------------------------------------
34 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Small Cap Fund at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Class A and B Shares of the
Small Cap Fund vs. Russell 2000 Stock Index+
--------------------------------------------------------------------------------
February 1995--April 2000
Small Cap Fund -- Small Cap Fund -- Russell 2000
Class A Shares Class B Shares 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
Oct-99 21,660 22,135 18,077
4/30/00 25,635 26,100 21,461
+ Hypothetical illustration of $10,000 invested in Class A and B shares on
February 21, 1995 (inception date), assuming deduction of the maximum 5.50%
sales charge at the time of investment for Class A shares and the deduction
of the maximum 5.00% CDSC for Class B shares. It also assumes reinvestment
of dividends and capital gains, if any, at net asset value through April
30, 2000. 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.
[GRAPH]
Industry Diversification of Common Stock*
------------------------------------------
Auto & Transportation 1.8%
Consumer Discretionary 16.1%
Consumer Staples 0.4%
Finance 7.6%
Health Care 14.5%
Materials & Processing 3.9%
Other Energy 1.7%
Producer Durables 4.6%
Technology 46.0%
Utilities 3.4%
* As a percentage of total common stock.
[GRAPH]
Investment Allocation as of April 30, 2000**
---------------------------------------------------------------
Repurchase Agreement and U.S. Treasury Bills 7.6%
Common Stock 92.4%
** As a percentage of total investments.
--------------------------------------------------------------------------------
The Concert Investment Series 35
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) April 30, 2000
--------------------------------------------------------------------------------
Government Fund
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 19.4%
U.S. Treasury Strips:
$ 29,800,000 Zero coupon bond to yield 6.746% due 11/15/09 $ 16,025,844
2,500,000 Zero coupon bond to yield 6.429% due 11/15/18 807,475
50,000,000 Zero coupon bond to yield 6.199% due 2/15/19 15,931,500
--------------------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost -- $32,407,440) 32,764,819
--------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES -- 80.6%
2,068,729 Federal National Mortgage Association (FNMA), Dwarf, 7.500% due 8/1/12* 2,058,385
Government National Mortgage Association (GNMA):
12,910,356 7.000% due 1/15/30* 12,426,218
39,782,088 7.500% due 2/15/30* 39,147,961
82,616,983 8.000% due 4/15/30* 82,874,748
--------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost -- $137,047,599) 136,507,312
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $169,455,039**) $169,272,131
--------------------------------------------------------------------------------------------------------------
</TABLE>
* Date shown represents the last in range of maturity dates of mortgage
certificates owned.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
36 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 96.8%
Consumer Durables -- 1.3%
483,825 Electronic Arts, Inc.* $ 29,271,412
429,800 SPX Corp.* 47,224,275
--------------------------------------------------------------------------------------------------------------
76,495,687
--------------------------------------------------------------------------------------------------------------
Consumer Non-Durables -- 3.3%
1,120,000 The Coca-Cola Co. 52,710,000
700,000 Colgate-Palmolive Co. 39,987,500
895,000 The Gillette Co. 33,115,000
349,000 Keebler Foods Co.* 10,971,688
800,000 PepsiCo, Inc. 29,350,000
500,000 The Procter & Gamble Co. 29,812,500
--------------------------------------------------------------------------------------------------------------
195,946,688
--------------------------------------------------------------------------------------------------------------
Consumer Services -- 7.3%
321,827 AMFM Inc.* 21,361,267
1,505,600 CBS Corp. 88,454,000
1,679,008 Cendant Corp.* 25,919,686
354,889 Clear Channel Communications, Inc.* 25,552,008
955,485 Cox Communications, Inc.* 40,906,702
344,250 McDonald's Corp. 13,124,531
850,000 MediaOne Group, Inc.* 64,281,250
1,200,000 Time Warner Inc. 107,925,000
1,055,000 The Walt Disney Co. 45,694,688
--------------------------------------------------------------------------------------------------------------
433,219,132
--------------------------------------------------------------------------------------------------------------
Energy -- 4.4%
952,000 BP Amoco PLC, Sponsored ADR 48,552,000
735,000 Burlington Resources Inc. 28,894,688
260,000 Chevron Corp. 22,132,500
1,225,000 Conoco Inc., Class A Shares 29,170,312
1,288,455 Exxon Mobil Corp. 100,096,848
506,300 Royal Dutch Petroleum Co. 29,048,962
--------------------------------------------------------------------------------------------------------------
257,895,310
--------------------------------------------------------------------------------------------------------------
Finance -- 16.0%
668,138 Ace Ltd. 15,993,553
1,060,200 AFLAC Inc. 51,751,012
1,500,300 Ambac Financial Group, Inc. 72,014,400
839,550 American International Group, Inc. 92,088,141
1,363,900 Annuity & Life Re Holdings, Ltd. 29,494,337
799,600 AXA Financial, Inc. 26,086,950
855,000 Bank of America Corp. 41,895,000
680 Berkshire Hathaway Inc., Class A Shares* 40,324,000
1,697,700 Capital One Financial Corp. 74,274,375
1,671,500 The Chase Manhattan Corp. 120,452,469
1,707,700 Countrywide Credit Industries, Inc. 47,175,212
1,000,000 Fannie Mae 60,312,500
3,121,170 IndyMac Mortgage Holdings, Inc. 40,770,283
520,000 Morgan Stanley Dean Witter & Co. 39,910,000
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 37
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Finance -- 16.0% (continued)
835,000 Providian Financial Corp. $ 73,532,188
934,000 Wells Fargo & Co. 38,352,375
1,691,435 XL Capital Ltd. 80,554,592
--------------------------------------------------------------------------------------------------------------
944,981,387
--------------------------------------------------------------------------------------------------------------
Health Care -- 11.1%
213,480 Affymetrix, Inc.* 28,833,142
558,200 American Home Products Corp. 31,363,863
1,000,000 Bristol-Myers Squibb Co. 52,437,500
305,100 Genentech, Inc.* 35,696,700
675,000 Johnson & Johnson 55,687,500
1,902,000 Merck & Co., Inc. 132,189,000
1,900,000 Pfizer Inc. 80,037,500
995,300 Pharmacia Corp. 49,702,794
1,076,414 Sepracor Inc.* 99,030,088
800,000 Warner-Lambert Co. 91,050,000
--------------------------------------------------------------------------------------------------------------
656,028,087
--------------------------------------------------------------------------------------------------------------
Industrial Services -- 2.8%
1,344,200 AES Corp.* 120,893,987
1,000,000 Haliburton Co. 44,187,500
--------------------------------------------------------------------------------------------------------------
165,081,487
--------------------------------------------------------------------------------------------------------------
Non-Energy Minerals -- 0.2%
179,600 Alcoa Inc. 11,651,550
--------------------------------------------------------------------------------------------------------------
Process Industries -- 0.7%
106,300 Dow Chemical Co. 12,011,900
494,800 E.I. du Pont de Nemours & Co. 23,472,075
195,000 International Paper Co. 7,166,250
--------------------------------------------------------------------------------------------------------------
42,650,225
--------------------------------------------------------------------------------------------------------------
Producer Manufacturing -- 4.6%
1,350,600 General Electric Co. 212,381,850
193,300 Minnesota Mining & Manufacturing Co. 16,720,450
971,100 Tyco International Ltd. 44,609,906
--------------------------------------------------------------------------------------------------------------
273,712,206
--------------------------------------------------------------------------------------------------------------
Retail -- 5.1%
491,200 Home Depot, Inc. 27,537,900
531,000 Kroger Co.* 9,856,688
685,000 Lowe's Cos., Inc. 33,907,500
630,000 Safeway Inc.* 27,798,750
800,000 Target Corp. 53,250,000
1,400,000 TJX Cos., Inc. 26,862,500
2,253,300 Wal-Mart Stores, Inc. 124,776,487
--------------------------------------------------------------------------------------------------------------
303,989,825
--------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
38 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Growth Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Technology -- 33.0%
12,218 Agilent Technologies, Inc.* $ 1,082,820
1,800,000 America Online, Inc.* 107,662,500
839,050 Applied Materials, Inc.* 85,425,778
3,887,800 Cisco Systems, Inc.* 269,533,884
653,305 Citrix Systems, Inc.* 39,892,437
474,900 Corning Inc. 93,792,750
902,400 Dell Computer Corp.* 45,232,800
867,300 EMC Corp.* 120,500,494
1,438,450 Intel Corp. 182,413,441
840,000 International Business Machines Corp. 93,765,000
574,800 Lexmark International Group, Inc., Class A Shares* 67,826,400
790,600 Linear Technology Corp. 45,163,025
1,180,600 Lucent Technologies Inc. 73,418,562
2,133,200 Microsoft Corp.* 148,790,700
300,300 Motorola, Inc. 35,754,469
1,100,000 Nokia Oyj, Sponsored ADR 62,562,500
236,500 Nortel Networks Corp. 26,783,625
2,062,600 Oracle Corp.* 164,879,088
282,180 QUALCOMM, Inc.* 30,598,894
1,324,600 Sun Microsystems, Inc.* 121,780,412
189,700 Texas Instruments, Inc. 30,897,388
190,595 VERITAS Software Corp.* 20,444,292
653,900 Xilinx, Inc.* 47,898,175
283,744 Yahoo! Inc.* 36,957,656
--------------------------------------------------------------------------------------------------------------
1,953,057,090
--------------------------------------------------------------------------------------------------------------
Transportation -- 0.5%
797,800 Knightsbridge Tankers Ltd. 14,859,025
173,200 United Parcel Service, Inc. 11,517,800
--------------------------------------------------------------------------------------------------------------
26,376,825
--------------------------------------------------------------------------------------------------------------
Utilities -- 6.5%
1,108,800 AT&T Corp. 51,767,100
137,350 AT&T Wireless Group* 4,369,447
600,000 Bell Atlantic Corp. 35,550,000
320,800 Enron Corp. 22,355,750
1,710,799 MCI WorldCom, Inc.* 77,734,430
1,010,600 Qwest Communications International Inc.* 43,834,775
1,678,500 SBC Communications Inc. 73,539,281
420,000 Sprint Corp. 25,830,000
860,000 Sprint PCS Group* 47,300,000
--------------------------------------------------------------------------------------------------------------
382,280,783
--------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $3,421,051,707) 5,723,366,282
--------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 39
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Growth Fund
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATION -- 1.8%
--------------------------------------------------------------------------------------------------------------
$ 85,000,000 U.S. Treasury Bond, 8.750% due 5/15/17+
(Cost -- $99,086,484) $ 106,302,700
--------------------------------------------------------------------------------------------------------------
SUB-TOTAL INVESTMENTS
(Cost -- $3,520,138,191) 5,829,668,982
--------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.4%
81,615,000 Chase Securities Inc., 5.550% dated 4/28/00, due 5/1/00;
Proceeds at maturity -- $81,652,747; (Fully collateralized
by U.S. Treasury Notes, 4.750% due 11/15/08;
Market value -- $83,251,275) (Cost -- $81,615,000) 81,615,000
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $3,601,753,191**) $5,911,283,982
--------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
+ Security is segregated for open purchase commitments.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
40 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Growth and Income Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 100%
Commercial Services -- 0.9%
280,000 SUPERVALU Inc. $ 5,792,500
170,000 W.W. Grainger, Inc.+ 7,373,750
--------------------------------------------------------------------------------------------------------------
13,166,250
--------------------------------------------------------------------------------------------------------------
Consumer Durables -- 1.8%
280,000 Ford Motor Co. 15,312,500
130,000 General Motors Corp.+ 12,171,250
--------------------------------------------------------------------------------------------------------------
27,483,750
--------------------------------------------------------------------------------------------------------------
Consumer Non-Durables -- 5.1%
175,000 The Coca-Cola Co. 8,235,937
364,200 ConAgra, Inc.+ 6,874,275
280,000 General Mills, Inc. 10,185,000
65,000 The Gillette Co. 2,405,000
235,000 Kimberly-Clark Corp. 13,644,687
365,000 PepsiCo, Inc. 13,390,937
200,000 The Procter & Gamble Co. 11,925,000
115,000 The Quaker Oats Co. 7,496,562
150,000 V.F. Corp. 4,237,500
--------------------------------------------------------------------------------------------------------------
78,394,898
--------------------------------------------------------------------------------------------------------------
Consumer Services -- 5.5%
180,000 Comcast Corp., Class A Shares 7,211,250
235,000 Cox Communications, Inc.*+ 10,060,938
184,800 H&R Block, Inc. 7,726,950
150,000 Knight-Ridder, Inc.+ 7,359,375
130,000 McDonald's Corp. 4,956,250
230,000 The New York Times Co. 9,473,125
290,000 The Reader's Digest Association, Inc., Class A Shares+ 9,280,000
83,104 Sabre Holdings Corp. 2,903,446
275,000 Viacom Inc., Class B Shares* 14,953,125
250,000 The Walt Disney Co. 10,828,125
--------------------------------------------------------------------------------------------------------------
84,752,584
--------------------------------------------------------------------------------------------------------------
Electronic Technology -- 26.0%
100,000 Applied Materials, Inc.* 10,181,250
820,000 Cisco Systems, Inc.* 56,849,063
170,000 Compaq Computer Corp. 4,972,500
315,000 Compuware Corp.* 3,957,187
470,000 Dell Computer Corp.* 23,558,750
50,000 EMC Corp.* 6,946,875
235,000 General Dynamics Corp. 13,747,500
190,000 Hewlett-Packard Co. 25,650,000
515,000 Intel Corp. 65,308,438
280,000 International Business Machines Corp.+ 31,255,000
115,000 Lexmark International Group, Inc.* 13,570,000
255,000 Lucent Technologies Inc.+ 15,857,813
155,000 Motorola, Inc. 18,454,688
110,000 Oracle Corp.* 8,793,125
310,000 SCI Systems, Inc.* 16,507,500
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 41
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Growth and Income Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Electronic Technology -- 26.0% (continued)
205,000 Seagate Technology, Inc.* $ 10,416,562
95,000 Siebel Systems, Inc.*+ 11,673,125
95,000 Sun Microsystems, Inc.* 8,734,063
140,000 Telefonaktiebolaget LM Ericsson ADR+ 12,381,250
115,000 Teradyne, Inc.* 12,650,000
58,000 Texas Instruments Inc. 9,446,750
350,000 Unisys Corp.* 8,115,625
170,000 United Technologies Corp. 10,571,875
--------------------------------------------------------------------------------------------------------------
399,598,939
--------------------------------------------------------------------------------------------------------------
Energy Minerals -- 4.8%
350,000 Conoco Inc., Class A Shares 8,334,375
290,000 Enron Corp. 20,209,375
425,000 Exxon Mobil Corp. 33,017,188
450,000 USX-Marathon Group 10,490,625
--------------------------------------------------------------------------------------------------------------
72,051,563
--------------------------------------------------------------------------------------------------------------
Finance -- 13.2%
155,000 A.G. Edwards, Inc. 5,831,875
250,000 The Allstate Corp. 5,906,250
60,000 American International Group, Inc. 6,581,250
340,000 AXA Financial, Inc. 11,092,500
265,000 Bank of America Corp. 12,985,000
242,500 The Bear Stearns Cos. Inc. 10,397,188
225,000 The Chase Manhattan Corp. 16,214,062
145,000 CIGNA Corp. 11,563,750
350,000 Conseco, Inc.+ 1,903,125
105,000 Fannie Mae 6,332,813
200,000 First Union Corp. 6,375,000
246,490 Fleet Boston Financial Corp. 8,734,989
115,000 The Goldman Sachs Group, Inc.+ 10,723,750
370,000 GreenPoint Financial Corp. 6,891,250
95,000 J.P. Morgan & Co. Inc. 12,195,625
350,000 KeyCorp 6,475,000
60,000 Lehman Brothers Holdings Inc. 4,923,750
315,000 Morgan Stanley Dean Witter & Co. 24,176,250
205,000 PNC Financial Services Group 8,943,125
250,001 Starwood Hotels & Resorts Worldwide, Inc. 7,109,403
325,000 UnionBanCal Corp. 8,998,438
300,000 Washington Mutual, Inc.+ 7,668,750
--------------------------------------------------------------------------------------------------------------
202,023,143
--------------------------------------------------------------------------------------------------------------
Health Services -- 1.2%
335,000 Columbia/HCA Healthcare Corp. 9,526,563
125,000 Wellpoint Health Networks Inc.*+ 9,218,750
--------------------------------------------------------------------------------------------------------------
18,745,313
--------------------------------------------------------------------------------------------------------------
Health Technology -- 9.3%
150,000 Abbott Laboratories 5,765,625
60,000 American Home Products Corp. 3,371,250
310,000 Amgen Inc.*+ 17,360,000
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
42 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Growth and Income Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Health Technology -- 9.3% (continued)
60,000 Baxter International Inc. $ 3,907,500
140,000 Biogen, Inc.* 8,233,750
225,000 Bristol-Myers Squibb Co. 11,798,437
12,000 Edwards Lifesciences Corp.* 180,000
190,000 Eli Lilly & Co.+ 14,689,375
160,000 Johnson & Johnson 13,200,000
335,000 Merck & Co., Inc. 23,282,500
357,000 Mylan Laboratories Inc. 10,129,875
420,000 Pfizer Inc. 17,692,500
65,000 Schering-Plough Corp. 2,620,313
245,000 Watson Pharmaceuticals, Inc.*+ 11,009,688
--------------------------------------------------------------------------------------------------------------
143,240,813
--------------------------------------------------------------------------------------------------------------
Industrial Services -- 0.7%
295,000 Fluor Corp. 9,900,937
--------------------------------------------------------------------------------------------------------------
Non-Energy Minerals -- 0.9%
215,000 Alcoa Inc.+ 13,948,125
--------------------------------------------------------------------------------------------------------------
Process Industries -- 6.3%
290,000 Air Products and Chemicals, Inc. 9,008,125
110,000 The Dow Chemical Co.+ 12,430,000
415,000 General Electric Co. 65,258,750
300,000 Rohm and Haas Co. 10,687,500
--------------------------------------------------------------------------------------------------------------
97,384,375
--------------------------------------------------------------------------------------------------------------
Producer Manufacturing -- 2.6%
230,000 Caterpillar Inc. 9,070,625
248,000 Honeywell International Inc. 13,888,000
200,000 Ingersoll-Rand Co.+ 9,387,500
120,000 Johnson Controls, Inc. 7,597,500
--------------------------------------------------------------------------------------------------------------
39,943,625
--------------------------------------------------------------------------------------------------------------
Retail Trade -- 5.5%
105,000 Best Buy Co., Inc.* 8,478,750
275,000 Federated Department Stores, Inc.*+ 9,350,000
230,000 The Gap, Inc. 8,452,500
300,000 The Home Depot, Inc. 16,818,750
290,000 The Limited, Inc.+ 13,104,375
345,000 The TJX Cos., Inc. 6,619,687
390,000 Wal-Mart Stores, Inc. 21,596,250
--------------------------------------------------------------------------------------------------------------
84,420,312
--------------------------------------------------------------------------------------------------------------
Technology Services -- 6.3%
330,000 America Online, Inc.* 19,738,125
270,000 Automatic Data Processing, Inc. 14,529,375
130,000 BMC Software, Inc.*+ 6,085,625
225,000 Electronic Data Systems Corp. 15,468,750
508,493 Microsoft Corp.* 35,467,387
44,000 Yahoo! Inc.* 5,731,000
--------------------------------------------------------------------------------------------------------------
97,020,262
--------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 43
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Growth and Income Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Transportation -- 0.7%
115,000 AMR Corp.* $ 3,917,187
340,000 Southwest Airlines Co. 7,373,750
--------------------------------------------------------------------------------------------------------------
11,290,937
--------------------------------------------------------------------------------------------------------------
Utilities -- 9.2%
375,000 AT&T Corp.+ 17,507,812
40,000 Bell Atlantic Corp. 2,370,000
290,000 BellSouth Corp. 14,119,375
315,000 The Coastal Corp. 15,809,063
180,000 DTE Energy Co.+ 5,872,500
160,000 Duke Energy Corp. 9,200,000
278,000 Edison International 5,299,375
240,000 GTE Corp. 16,260,000
430,000 MCI WorldCom, Inc.* 19,538,125
235,000 PECO Energy Co. 9,796,562
425,000 SBC Communications Inc. 18,620,330
210,000 Texas Utilities Co. 7,074,375
--------------------------------------------------------------------------------------------------------------
141,467,517
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $1,199,217,979**) $1,534,833,343
--------------------------------------------------------------------------------------------------------------
</TABLE>
+ All or a portion of this security is on loan (See Note 12).
* Non-incoming producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
44 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
International Equity Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 91.3%
Australia -- 0.8%
350,000 ERG Ltd. $ 1,664,430
--------------------------------------------------------------------------------------------------------------
Canada -- 11.6%
40,000 BCE Emergis Inc.* 1,935,615
80,000 C-MAC Industries Inc.* 4,049,403
100,000 Celestica Inc.* 5,392,455
17,500 Certicom Corp.* 891,712
76,000 JDS Uniphase Corp.* 7,880,250
35,000 Nortel Networks Corp. 3,963,750
--------------------------------------------------------------------------------------------------------------
24,113,185
--------------------------------------------------------------------------------------------------------------
Denmark -- 1.8%
25,000 William Demant A/S 3,804,315
--------------------------------------------------------------------------------------------------------------
Finland -- 3.3%
50,000 F-Secure Oyj* 637,912
80,000 Nokia Oyj 4,530,014
60,000 Satama Interactive Oyj* 704,802
30,000 Saunalahti Oyj* 187,820
20,000 Stonesoft Oyj* 373,634
56,800 TJ Group Oyj* 366,993
--------------------------------------------------------------------------------------------------------------
6,801,175
--------------------------------------------------------------------------------------------------------------
France -- 6.0%
27,000 Axa 4,013,105
50,000 Credit Lyonnais 1,952,466
30,000 Equant N.V.* 2,327,923
40,000 FI System* 2,227,224
5,000 Groupe Danone 1,095,842
5,000 Legrand SA 934,085
--------------------------------------------------------------------------------------------------------------
12,550,645
--------------------------------------------------------------------------------------------------------------
Germany -- 6.9%
10,000 Allianz AG 3,763,681
2,000 Biodata Information Technology AG* 555,895
25,000 DataDesign AG* 551,338
10,000 Intershop Communications AG* 4,219,332
10,000 Marschollek, Lautenschlaeger und Partner AG 5,267,331
--------------------------------------------------------------------------------------------------------------
14,357,577
--------------------------------------------------------------------------------------------------------------
Hong Kong -- 3.7%
10,000 AsiaInfo Holdings, Inc.* 435,000
2,500 China Telecom (Hong Kong) Ltd.* 366,719
600,000 Computer & Technologies Holdings Ltd.* 689,416
250,000 Hutchison Whampoa Ltd. 3,642,864
400,000 Li & Fung Ltd. 1,545,730
600,000 Softbank Investment International (Strategic) Ltd.* 250,347
100,000 Sun Hung Kai Properties Ltd. 792,764
--------------------------------------------------------------------------------------------------------------
7,722,840
--------------------------------------------------------------------------------------------------------------
India -- 0.9%
65,000 ICICI Ltd. 1,560,000
28,200 SSI Ltd.* 257,325
--------------------------------------------------------------------------------------------------------------
1,817,325
--------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
The Concert Investment Series 45
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
International Equity Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Ireland -- 2.2%
40,000 Elan Corp. PLC* $ 1,715,000
75,685 Irish Continental Group PLC 717,308
150,000 ITG Group PLC* 1,766,266
15,000 Riverdeep Group PLC* 343,125
--------------------------------------------------------------------------------------------------------------
4,541,699
--------------------------------------------------------------------------------------------------------------
Israel -- 3.0%
80,000 Amdocs Ltd.* 5,415,000
10,000 BATM Advanced Communications Ltd. 711,983
--------------------------------------------------------------------------------------------------------------
6,126,983
--------------------------------------------------------------------------------------------------------------
Italy -- 2.2%
200,000 Telecom Italia Mobile S.p.A. 1,914,647
50,000 Tiscali S.p.A.* 2,671,484
--------------------------------------------------------------------------------------------------------------
4,586,131
--------------------------------------------------------------------------------------------------------------
Japan -- 14.0%
25,000 FANUC LTD. 2,618,552
75,000 FUJITSU LTD. 2,123,525
200,000 The Furukawa Electric Co., Ltd. 2,774,000
1,000 HIKARI TSUSHIN, INC. 144,344
7,000 JAFCO Co., Ltd. 1,230,627
20,000 Matsushita Communication Industrial Co., Ltd. 3,134,860
200,000 Nippon Sheet Glass Co., Ltd. 1,776,544
140 NTT DoCoMo, Inc. 4,676,382
50,000 Sharp Corp. 964,608
18,000 SOFTBANK CORP. 4,430,257
10,000 SONY CORP. 1,148,277
10,000 SONY CORP. - NEW 1,156,604
20,000 Trend Micro Inc. 2,997,918
--------------------------------------------------------------------------------------------------------------
29,176,498
--------------------------------------------------------------------------------------------------------------
Netherlands -- 2.4%
50,000 IFCO Systems N.V.* 1,227,981
90,000 United Pan-Europe Communications N.V.* 3,283,151
40,000 World Online International N.V.* 539,491
--------------------------------------------------------------------------------------------------------------
5,050,623
--------------------------------------------------------------------------------------------------------------
Norway -- 2.6%
6,250 Fast Search & Transfer ASA* 291,648
25,000 Opticom ASA* 2,640,550
120,000 Tomra Systems ASA 2,481,279
--------------------------------------------------------------------------------------------------------------
5,413,477
--------------------------------------------------------------------------------------------------------------
Singapore -- 2.3%
500,000 CSE Systems & Engineering Ltd.* 374,817
125,000 Singapore Press Holdings Ltd. 2,445,095
175,000 Venture Manufacturing (Singapore) Ltd.* 2,049,780
--------------------------------------------------------------------------------------------------------------
4,869,692
--------------------------------------------------------------------------------------------------------------
South Africa -- 0.6%
50,000 Anglo American Platinum Corp., Ltd. 1,209,529
--------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
46 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
International Equity Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Spain -- 1.4%
125,000 Indra Sistemas SA $ 2,942,369
--------------------------------------------------------------------------------------------------------------
Sweden -- 3.9%
70,000 Cell Network AB* 1,313,526
92,400 Framtidsfabriken AB* 1,517,123
60,000 Icon Medialab International AB* 911,426
40,000 Net Insight AB* 1,673,182
100,000 Securitas AB, Class B Shares 2,591,310
350 TeleLarm Care AB* 3,851
--------------------------------------------------------------------------------------------------------------
8,010,418
--------------------------------------------------------------------------------------------------------------
Switzerland -- 2.3%
75,000 Fantastic Corp.* 1,373,789
100,000 Mettler-Toledo International Inc.* 3,450,000
--------------------------------------------------------------------------------------------------------------
4,823,789
--------------------------------------------------------------------------------------------------------------
Taiwan -- 0.9%
100,000 Ritek Inc.* 1,907,280
--------------------------------------------------------------------------------------------------------------
United Kingdom -- 18.5%
225,000 365 Corp. PLC* 489,391
50,000 Baltimore Technologies PLC* 5,026,915
125,000 Capita Group PLC 3,221,528
107,000 COLT Telecom Group PLC* 4,686,461
100,000 Energis PLC* 4,960,411
100,000 Galen Holdings PLC 958,439
175,000 Guardian IT PLC 3,525,686
325,000 Hays PLC 2,258,004
125,959 Misys PLC 1,452,630
600,000 Serco Group PLC 4,365,787
450,000 Telewest Communications PLC* 2,770,867
707,575 Vodafone AirTouch PLC 3,249,668
30,000 Vodafone AirTouch PLC, Sponsored ADR 1,410,000
--------------------------------------------------------------------------------------------------------------
38,375,787
--------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOTAL COMMON STOCK
(Cost -- $130,627,334) 189,865,767
------------------------------------------------------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 8.7%
$ 17,976,000 CS First Boston Corp., 5.650% dated 4/28/00, due 5/1/00;
Proceeds at maturity -- $17,984,464; (Fully collateralized by U.S. Treasury Bills
due 7/31/00; Market value -- $18,336,421) (Cost -- $17,976,000) 17,976,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $148,603,334**) $207,841,767
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 47
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Mid Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 85.0%
Building Materials -- 1.3%
19,290 Vulcan Materials Co. $ 845,142
--------------------------------------------------------------------------------------------------------------
Commercial Services -- 3.8%
9,740 Advent Software, Inc.* 511,350
36,463 FactSet Research Systems Inc.+ 1,048,311
24,650 Valassis Communications, Inc. 839,640
--------------------------------------------------------------------------------------------------------------
2,399,301
--------------------------------------------------------------------------------------------------------------
Consumer Durables -- 3.7%
13,637 Electronic Arts Inc.*+ 825,039
18,100 Harley-Davidson, Inc.+ 720,606
7,430 SPX Corp. 816,372
--------------------------------------------------------------------------------------------------------------
2,362,017
--------------------------------------------------------------------------------------------------------------
Consumer Non-Durables -- 2.7%
32,290 Keebler Foods Co.*+ 1,015,117
31,350 The Pepsi Bottling Group, Inc. 675,984
--------------------------------------------------------------------------------------------------------------
1,691,101
--------------------------------------------------------------------------------------------------------------
Consumer Services -- 5.3%
10,950 Cablevision Systems Corp., Class A Shares* 741,178
9,100 Entercom Communications Corp.* 386,750
34,050 Imax Corp.* 783,150
31,000 Premier Parks Inc. 668,438
15,910 Spanish Broadcasting System, Inc., Class A Shares* 297,318
4,450 Univision Communications, Inc., Class A Shares* 486,162
--------------------------------------------------------------------------------------------------------------
3,362,996
--------------------------------------------------------------------------------------------------------------
Energy -- 2.4%
10,800 Anadarko Petroleum Corp. 469,125
25,820 Newfield Exploration Co.* 1,048,938
--------------------------------------------------------------------------------------------------------------
1,518,063
--------------------------------------------------------------------------------------------------------------
Finance -- 14.3%
41,930 ACE Ltd. 1,003,699
20,855 Ambac Financial Group, Inc.++ 1,001,040
34,282 Annuity and Life Re Holdings, Ltd.++ 741,348
15,150 Arthur J. Gallagher & Co. 564,338
16,250 Capital One Financial Corp. 710,938
14,245 Commerce Bancorp, Inc. 565,349
12,500 Countrywide Credit Industries, Inc. 345,313
28,165 IndyMac Mortgage Holdings, Inc. 367,905
9,800 Marshall & Ilsley Corp. 455,088
28,617 Nationwide Financial Services, Inc., Class A Shares 797,699
18,600 North Fork Bancorporation, Inc. 301,088
10,325 Providian Financial Corp. 909,245
3,050 State Street Corp. 295,469
5,465 Waddell & Reed Financial, Class A Shares 145,505
17,000 XL Capital Ltd., Class A Shares 809,625
--------------------------------------------------------------------------------------------------------------
9,013,649
--------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
48 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Mid Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Health Care - Drugs -- 5.3%
2,465 Affymetrix, Inc.* $ 332,929
6,700 Forest Laboratories, Inc.* 563,219
2,850 Genentech Inc.* 333,450
3,750 MedImmune, Inc.* 599,766
2,000 Millennium Pharmaceuticals, Inc.* 158,750
15,165 Sepracor Inc.*+ 1,395,180
--------------------------------------------------------------------------------------------------------------
3,383,294
--------------------------------------------------------------------------------------------------------------
Health Care - Services -- 1.0%
8,840 Wellpoint Health Networks Inc.* 651,950
--------------------------------------------------------------------------------------------------------------
Industrial Services -- 6.7%
7,600 The AES Corp.++ 683,525
12,230 BJ Services Co.* 859,158
6,200 Calpine Corp.* 567,300
12,810 Cooper Cameron Corp.* 960,750
21,255 Diamond Offshore Drilling, Inc. 856,842
8,450 Weatherford International, Inc.* 343,281
--------------------------------------------------------------------------------------------------------------
4,270,856
--------------------------------------------------------------------------------------------------------------
Process Industries -- 2.3%
16,785 Bowater Inc. 923,175
13,950 Ecolab Inc. 544,922
--------------------------------------------------------------------------------------------------------------
1,468,097
--------------------------------------------------------------------------------------------------------------
Producer Manufacturing -- 2.9%
8,450 Grant Prideco, Inc.* 162,663
21,400 Molex Inc., Class A Shares 856,000
24,805 Mueller Industries, Inc.* 817,015
--------------------------------------------------------------------------------------------------------------
1,835,678
--------------------------------------------------------------------------------------------------------------
Retail -- 2.3%
14,950 Bed Bath & Beyond Inc.* 548,478
6,600 Best Buy Co., Inc.* 532,950
6,350 Dollar Tree Stores, Inc.* 367,506
--------------------------------------------------------------------------------------------------------------
1,448,934
--------------------------------------------------------------------------------------------------------------
Technology -- 24.1%
60 724 Solutions Inc.* 3,030
13,550 ADC Telecommunications, Inc.* 823,162
275 Aether Systems, Inc.* 45,784
5,700 Altera Corp.* 582,825
5,300 Applied Micro Circuits Corp.* 683,037
5,500 Atmel Corp.* 269,156
235 Avanex Corp.* 28,641
5,900 Citrix Systems, Inc.* 360,268
1,500 CMGI Inc.* 106,875
350 eBay Inc.* 55,716
23,250 Fiserv, Inc.* 1,068,047
1,400 InfoSpace, Inc.* 100,538
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 49
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Mid Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Technology -- 24.1% (continued)
10,000 Intuit Inc.* $ 359,375
8,900 Jabil Circuit, Inc.* 364,344
800 Juniper Networks, Inc.* 170,150
9,100 L-3 Communications Holdings, Inc.* 484,575
5,590 Lexmark International Group, Inc., Class A Shares* 659,620
19,250 Linear Technology Corp. 1,099,656
15,450 Maxim Integrated Products, Inc.* 1,001,353
6,850 Mercury Interactive Corp.* 616,500
1,100 NBC Internet Inc., Class A Shares 25,438
4,550 Novellus Systems, Inc.* 303,428
345 Palm, Inc.* 9,401
1,350 PMC-Sierra, Inc.* 259,031
4,200 Project Software & Development, Inc.* 128,100
9,100 Sanmina Corp.* 546,568
11,050 Siebel Systems, Inc.* 1,357,768
2,080 Snowball.com, Inc.* 7,540
6,005 Teradyne, Inc.* 660,550
13,475 VERITAS Software Corp.* 1,445,404
2,600 VerticalNet, Inc.* 140,400
9,600 Waters Corp.* 909,600
130 webMethods, Inc.* 11,700
7,700 Xilinx, Inc.* 564,025
--------------------------------------------------------------------------------------------------------------
15,251,605
--------------------------------------------------------------------------------------------------------------
Telecommunications -- 2.7%
25,460 CenturyTel, Inc. 623,770
1,675 COLT Telecom Group PLC, Sponsored ADR* 286,007
5,250 Covad Communications Group, Inc.* 145,688
7,320 Intermedia Communications Inc.* 298,290
1,075 Net2000 Communications, Inc.* 15,856
6,550 Time Warner Telecom Inc., Class A Shares*+ 358,612
--------------------------------------------------------------------------------------------------------------
1,728,223
--------------------------------------------------------------------------------------------------------------
Transport -- 1.9%
10,420 Kansas City Southern Industries, Inc. 748,938
25,350 Knightsbridge Tankers Ltd. 472,143
--------------------------------------------------------------------------------------------------------------
1,221,081
--------------------------------------------------------------------------------------------------------------
Utilities -- 2.3%
8,950 Coastal Corp. 449,178
7,900 Dynegy Inc., Class A Shares 516,956
10,850 The Montana Power Co. 478,078
--------------------------------------------------------------------------------------------------------------
1,444,212
--------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $44,106,810) 53,896,199
--------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
50 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Mid Cap Fund
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 15.0%
--------------------------------------------------------------------------------------------------------------
$ 9,502,000 Chase Securities Inc., 5.550% dated 4/28/00, due 5/1/00;
Proceeds at maturity -- $9,506,395; (Fully collateralized
by U.S. Treasury Notes, 4.750% due 11/15/08;
Market value -- $9,694,425) (Cost -- $9,502,000) $ 9,502,000
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $53,608,810**) $63,398,199
--------------------------------------------------------------------------------------------------------------
</TABLE>
* 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.
--------------------------------------------------------------------------------
The Concert Investment Series 51
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alabama -- 1.6%
$ 2,000,000 AAA Jefferson County, AL Sewer Revenue, Capital Improvement, Series A,
FGIC-Insured, 5.375% due 2/1/36 $1,792,500
----------------------------------------------------------------------------------------------------------------------------------
Arizona -- 0.6%
400,000 A Maricopa County, AZ IDA, Multi-Family Housing Revenue, (Laguna Port
Apartments Project), 6.500% due 7/1/09 411,000
225,000 NR Scottsdale, AZ IDA Revenue, First Mortgage Westminster Village, Series A,
8.250% due 6/1/15 235,406
----------------------------------------------------------------------------------------------------------------------------------
646,406
----------------------------------------------------------------------------------------------------------------------------------
California -- 4.1%
2,000,000 A2* California Health Facilities Financial Authority Revenue, Cedars-Sinai Medical
Center, Series A, 6.250% due 12/1/34 1,965,000
365,000 NR Del Mar, CA Race Track Authority Revenue, 6.000% due 8/15/01 367,281
Orange County, CA Recovery, Series A, MBIA-Insured:
1,000,000 AAA 6.000% due 6/1/09 1,071,250
1,000,000 AAA COP, MBIA-Insured, 6.000% due 7/1/08 1,070,000
----------------------------------------------------------------------------------------------------------------------------------
4,473,531
----------------------------------------------------------------------------------------------------------------------------------
Colorado -- 5.5%
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) 1,102,500
1,000,000 AAA Call @ 103, 7.000% due 8/31/26 (b) 1,113,750
Arvada, CO Sales & Use Tax Revenue, FGIC-Insured:
245,000 AAA Pre-Refunded -- Escrowed with U.S. government securities to 12/1/02
Call @ 100, 6.250% due 12/1/12 253,269
255,000 AAA Refunding & Improvement, 6.250% due 12/1/12 263,606
Berry Creek Metropolitan District, CO Refunding & Improvement:
150,000 NR 8.250% due 12/1/11 156,000
100,000 NR Pre-Refunded -- Escrowed with U.S. government securities to 12/1/01
Call @ 101, 8.250% due to 12/1/11 (c) 106,250
1,000,000 A Colorado Health Facilities Authority Revenue, Series B, 5.350% due 8/1/15 912,500
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) 426,500
Highlands Ranch Metropolitan District:
1,000,000 AAA FSA-Insured, 6.500% due 6/15/10 1,092,500
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) 538,750
----------------------------------------------------------------------------------------------------------------------------------
5,965,625
----------------------------------------------------------------------------------------------------------------------------------
Connecticut -- 1.0%
Mashantucket Western Pequot Tribe, Connecticut Special Revenue,
Sub-144A, Series A:
505,000 BBB- 6.500% due 9/1/05 (d) 527,725
495,000 AAA Escrowed to maturity with U.S. government securities,
6.500% due 9/1/05 (d) 530,269
----------------------------------------------------------------------------------------------------------------------------------
1,057,994
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
52 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
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 $ 273,750
----------------------------------------------------------------------------------------------------------------------------------
Florida -- 1.2%
355,000 A+ Broward County, FL Resource Recovery Revenue, Broward Waste Energy,
7.950% due 12/1/08 366,321
1,000,000 AAA Florida State Correctional Privatization Community, COP, AMBAC-Insured,
5.000% due 8/1/17 920,000
----------------------------------------------------------------------------------------------------------------------------------
1,286,321
----------------------------------------------------------------------------------------------------------------------------------
Georgia -- 1.5%
2,000,000 AAA Atlanta, GA Water & Wastewater Revenue, Series A, FGIC-Insured,
5.000% due 11/1/38 1,675,000
----------------------------------------------------------------------------------------------------------------------------------
Illinois -- 3.4%
500,000 AA Chicago, IL Metropolitan Water Reclamation District, (Partially Escrowed
to maturity with U.S. government securities), 7.000% due 1/1/11 563,125
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) 525,625
500,000 AAA Cook County, IL Community College, COP, FGIC-Insured, 8.750% due 1/1/07 598,125
250,000 NR Crestwood, IL Tax Increment Revenue, 7.250% due 12/1/08 253,750
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) 523,125
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) 265,937
300,000 Baa2* Mercy Center for Health Care Services, (Pre-Refunded -- Escrowed with
U.S. government securities to 10/1/02 Call @ 102),
6.625% due 10/1/12 (c) 316,875
500,000 AA+ Northwestern Memorial Hospital, 6.750% due 8/15/11 518,125
Series A, MBIA-Insured:
67,000 AAA 7.900% due 8/15/03 67,201
40,000 AAA Escrowed to maturity with U.S. government securities, 7.900% due 8/15/03 43,000
----------------------------------------------------------------------------------------------------------------------------------
3,674,888
----------------------------------------------------------------------------------------------------------------------------------
Indiana -- 0.6%
100,000 NR Carmel, IN Retirement Housing Revenue, (Beverly Enterprises Indiana Project),
8.750% due 12/1/08 105,625
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 8/15/22 525,000
----------------------------------------------------------------------------------------------------------------------------------
630,625
----------------------------------------------------------------------------------------------------------------------------------
Iowa -- 0.9%
1,000,000 AAA Des Moines, IA Parking Facility Revenue, FGIC-Insured, 7.250% due 7/1/15 1,023,240
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 53
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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 $ 828,750
190,000 NR Louisiana Public Facilities Authority Revenue, Industrial Development,
Beverly Enterprise, 8.250% due 9/1/08 198,312
----------------------------------------------------------------------------------------------------------------------------------
1,027,062
----------------------------------------------------------------------------------------------------------------------------------
Massachusetts -- 7.1%
500,000 Aaa* Boston, MA Boston City Hospital, Series A, FHA-Insured, (Pre-Refunded--
Escrowed with U.S. government securities to various call dates and prices),
7.625% due 2/15/21 512,390
1,000,000 AAA Holyoke, MA GO, Series B, FSA-Insured, 6.000% due 6/15/07 1,055,000
5,000 BBB+ Massachusetts Municipal Wholesale Electric Co., Power Supply System,
Series A, 8.750% mandatory tender 1/1/05 5,688
1,000,000 Aaa* Massachusetts State College Building Authority Project Revenue, MBIA-Insured,
5.375% due 5/1/39 893,750
2,230,000 AA- Massachusetts State Health & Educational Facilities Authority Revenue,
(Boston College), Series L, 5.000% due 6/1/26 1,915,013
1,000,000 AAA Massachusetts State HFA Housing Development, Series B, MBIA-Insured,
5.300% due 12/1/17 942,500
240,000 Aa3* Massachusetts State HFA Housing Revenue, Single-Family, Series 31,
6.450% due 12/1/16 246,300
125,000 NR Massachusetts State Industrial Finance Agency, Industrial Revenue,
Beverly Enterprises, 8.000% due 5/1/02 127,656
2,500,000 AAA Massachusetts State Turnpike Authority, Metropolitan Highway System
Revenue, Subseries A, AMBAC-Insured, 4.750% due 1/1/34 2,021,875
----------------------------------------------------------------------------------------------------------------------------------
7,720,172
----------------------------------------------------------------------------------------------------------------------------------
Michigan -- 2.2%
2,000,000 NR 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) 2,145,000
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 5/1/08 208,928
----------------------------------------------------------------------------------------------------------------------------------
2,353,928
----------------------------------------------------------------------------------------------------------------------------------
Minnesota -- 1.0%
150,000 NR Minneapolis, MN Health Care Facilities Revenue, (Ebenezer Social Project),
Series A, 7.000% due 7/1/12 144,562
1,000,000 AAA Minneapolis & St. Paul, MN Metropolitan Airport Revenue, Series A,
FGIC-Insured, 5.125% due 1/1/25 893,750
----------------------------------------------------------------------------------------------------------------------------------
1,038,312
----------------------------------------------------------------------------------------------------------------------------------
Mississippi -- 0.5%
500,000 NR Ridgeland, MS Urban Renewal Revenue, (The Orchard Limited Project),
Series A, 7.750% due 12/1/15 505,000
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
54 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Missouri -- 4.7%
$ 2,750,000 AAA Kansas City, MO Municipal Assistance, MBIA-Insured, 5.000% due 4/15/20 $2,440,625
Missouri Health State & Educational Facilities Authority Revenue:
500,000 BBB+ Heartland Health System Project, 6.875% due 11/15/04 512,500
500,000 BBB+ Lake of the Ozarks General Hospital, 6.000% due 2/15/06 493,750
1,615,000 AAA St. Charles County, MO IDA, Westchester Village Apartments,
FNMA-Collateralized, 6.050% due 2/1/17 1,627,113
----------------------------------------------------------------------------------------------------------------------------------
5,073,988
----------------------------------------------------------------------------------------------------------------------------------
Nevada -- 2.0%
2,000,000 AAA Clark County, NV IDR, (Nevada Power Co. Project), AMBAC-Insured,
7.200% due 10/1/22 2,137,500
----------------------------------------------------------------------------------------------------------------------------------
New Hampshire -- 0.9%
New Hampshire Higher Educational & Health Facilities Authority Revenue:
370,000 NR First Mortgage, Odd Fellows Home, 9.000% due 6/1/14 401,450
520,000 BBB New London Hospital Association Project, 7.500% due 6/1/05 541,450
----------------------------------------------------------------------------------------------------------------------------------
942,900
----------------------------------------------------------------------------------------------------------------------------------
New Jersey -- 3.5%
1,500,000 Aa2* Mercer County, NJ Improvement Authority Revenue, zero coupon due 4/1/11 830,625
1,000,000 AAA New Jersey Building Authority State Building Revenue, MBIA-Insured,
5.000% due 6/15/18 900,000
New Jersey EDA:
880,000 NR Holt Hauling & Warehousing, Series G, 8.400% due 12/15/15 902,000
100,000 A-1+ Water Facilities Revenue, 6.100% due 11/1/25 (e) 100,000
1,000,000 AAA New Jersey State Turnpike Authority, Series C, MBIA-Insured,
6.500% due 1/1/16 1,105,000
----------------------------------------------------------------------------------------------------------------------------------
3,837,625
----------------------------------------------------------------------------------------------------------------------------------
New Mexico -- 1.0%
1,000,000 A+ Farmington, NM PCR, Southern California Edison Co., Series A,
7.200% due 4/1/21 (b) 1,039,330
----------------------------------------------------------------------------------------------------------------------------------
New York -- 12.8%
Metropolitan Transportation Authority, NY Transportation Facilities Revenue:
2,000,000 AAA Series B, FGIC-Insured, 4.750% due 7/1/26 1,652,500
5,000,000 AAA Series C, FSA-Insured, 4.750% due 7/1/16 4,418,750
350,000 NR New York, NY City Industrial Development Agency Civic Facility Revenue,
(Marymount Manhattan College Project), (Pre-Refunded -- Escrowed with
U.S. government securities to 7/1/03 Call @ 102),
7.000% due 7/1/23 (c) 374,500
2,000,000 AA+++ New York, NY City Transitional Financing Authority Revenue,
5.500% due 11/1/29 1,875,000
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 6/15/20 524,375
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 1,086,250
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 55
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York -- 12.8% (continued)
New York State Dormitory Authority Revenue:
$ 345,000 A City University System, Series C, 6.000% due 7/1/16 $ 345,024
3,000,000 A++ Mental Health Services Facilities Improvement, Series B,
5.375% due 2/15/26 2,703,750
1,000,000 AAA New York State Thruway Authority, Highway & Bridge Fund, Series B,
FGIC-Insured, 5.000% due 4/1/17 907,500
----------------------------------------------------------------------------------------------------------------------------------
13,887,649
----------------------------------------------------------------------------------------------------------------------------------
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 1/1/24 424,375
----------------------------------------------------------------------------------------------------------------------------------
Ohio -- 12.5%
1,840,000 Aaa* Brecksville Broadview Heights Ohio City School District, FGIC-Insured,
6.500% due 12/1/16 (b) 1,950,400
500,000 AAA++ Cleveland, OH Parking Facilities Revenue Improvement, (Pre-Refunded --
Escrowed with U.S. government securities to 9/15/02 Call @ 102),
8.000% due 9/15/12 542,500
500,000 NR Cuyahoga County, OH Health Care Facilities Revenue, Judson Retirement
Community, Series A, 7.000% due 11/15/10 486,875
1,000,000 AAA Cuyahoga County, OH Hospitals Revenue, University Hospitals Health System,
AMBAC-Insured, 5.500% due 1/15/30 927,500
660,000 Aa* Delaware County, OH Health Care Facilities Revenue, FHA-Insured,
6.550% due 2/1/35 688,875
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 1,038,750
2,000,000 AAA Lucas County, OH Hospitals Revenue, Promedia Healthcare Obligation Group,
AMBAC-Insured, 5.375% due 11/15/29 1,812,500
1,000,000 Baa2* Miami County, OH Hospital Facilities Refunding & Improvement, Upper Valley
Medical Center, Series A, 6.000% due 5/15/06 976,250
1,000,000 A-1+ Ohio State Air Quality Development Authority Revenue, (Cincinnati
Gas & Electric), 5.850% due 9/1/30 (e) 1,000,000
1,000,000 Baa2* Ohio State Water Development Authority, Pollution Control Facilities Revenue,
(Ohio Edison Co. Project), 5.950% due 5/15/29 932,500
3,250,000 AAA Warrensville Heights Ohio City School Improvement, FGIC-Insured,
5.750% due 12/1/24 3,176,875
----------------------------------------------------------------------------------------------------------------------------------
13,533,025
----------------------------------------------------------------------------------------------------------------------------------
Oklahoma -- 1.6%
1,200,000 A-1+ Oklahoma State Industrial Authority Revenue, (Integris Baptist), Series B,
5.800% due 8/15/29 (e) 1,200,000
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 6/1/17 540,625
----------------------------------------------------------------------------------------------------------------------------------
1,740,625
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
56 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Pennsylvania -- 7.4%
$ 1,000,000 Ba2* Allegheny County, PA Hospital Development Authority Revenue,
(St. Francis Medical Center Project), 5.750% due 5/15/17 $ 828,750
2,000,000 Aaa* Harrisburg, PA, Series D, AMBAC-Insured, zero coupon due 3/15/18 697,500
265,000 Aaa* Montgomery County, PA IDA, Pensburg Nursing & Rehabilitation Center,
(Pre-Refunded -- Escrowed with U.S. government securities 3/31/04
Call @ 102.775), 7.625% due 7/1/18 294,481
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) 102,472
2,425,000 AAA Pennsylvania State Higher Educational Facilities Authority Revenue,
Thomas Jefferson University, AMBAC-Insured, 5.000% due 7/1/19 2,161,281
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) 529,375
1,400,000 Aa3* Philadelphia, PA IDA, (Girard Estates Facilities Leasing Project), (Escrowed
to maturity with U.S. government securities), 5.000% due 5/15/27 (c) 1,233,750
250,000 AAA Scranton - Lackawanna, PA Health & Welfare Authority Revenue,
(Moses Taylor Hospital Project), (Pre-Refunded -- Escrowed with
U.S. government securities to 7/1/01 Call @ 102), Series B,
8.500% due 7/1/20 265,625
500,000 A Shenandoah Valley School District PA, Series B, zero coupon due 2/1/12 256,875
2,000,000 AA- St. Mary Hospital, Bucks County, Catholic Health Initiatives, Series A,
5.000% due 12/1/18 1,702,500
----------------------------------------------------------------------------------------------------------------------------------
8,072,609
----------------------------------------------------------------------------------------------------------------------------------
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 8/1/19 527,500
----------------------------------------------------------------------------------------------------------------------------------
South Carolina -- 2.1%
2,500,000 Aaa* South Carolina Transportation Infrastructure Revenue, Series A,
AMBAC-Insured, 5.250% due 10/1/21 2,271,875
----------------------------------------------------------------------------------------------------------------------------------
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 1,002,500
----------------------------------------------------------------------------------------------------------------------------------
Texas -- 14.1%
1,000,000 AAA Aledo, Texas Independent School District, PSFG, 5.000% due 2/15/29 855,000
685,000 A Austin, TX Housing Finance Corp., Multi-Family Housing Revenue,
(Stassney Woods Apartments Projects), 6.500% due 10/1/10 701,269
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) 539,375
1,000,000 A3* Brazos River Authority, TX PCR, Utilities Electric Co., Series C,
5.550% due 6/1/30 (f) 842,500
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 9/1/17 513,340
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 57
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Texas -- 14.1% (continued)
$ 345,000 A Ector County, TX Hospital District Revenue, 7.125% due 4/15/02 $ 354,488
Frenship, TX ISD, PSFG:
500,000 Aaa* 5.500% due 2/15/03 505,000
500,000 Aaa* 5.500% due 2/15/04 504,375
Harris County, TX Health Facilities Development Corp.:
250,000 NR Memorial Hospital System Project, (Pre-Refunded -- Escrowed with
U.S. government securities to various call dates and prices),
7.125% due 6/1/15 (c) 264,688
2,000,000 AA Texas Children's Hospital Project, Series A, 5.250% due 10/1/29 1,707,500
2,000,000 AA- Houston, TX Refunded & Public Improvement, Series A, 4.750% due 3/1/17 1,752,500
250,000 NR Rusk County, TX Health Facilities Corp. Hospital Revenue, (Henderson
Memorial Hospital Project), 7.750% due 4/1/13 249,687
Tarrant County, TX Health Facilities Development Corp. Hospital Revenue:
250,000 BBB 7.000% due 5/15/28 246,563
250,000 BBB Pre-Refunded -- Escrowed with U.S. government securities to 5/15/03
Call @ 102, 7.000% due 5/15/28 (c) 268,438
Texas General Services Community Partnership Interests, (Office Building &
Land Acquisition Project):
130,000 A- 7.000% due 8/1/14 135,687
330,000 A- 7.000% due 8/1/24 344,025
170,000 Aa2* Texas Housing Agency Mortgage Revenue Single-Family, Series A,
7.150% due 9/1/12 175,738
Texas Water Development Board Revenue, Series B:
2,000,000 AAA 5.125% due 7/15/18 1,847,500
2,500,000 AAA 5.000% due 7/15/19 2,225,000
1,120,000 AAA West Texas Municipal Power Agency Revenue, MBIA-Insured,
5.000% due 2/15/18 1,002,400
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) 275,938
----------------------------------------------------------------------------------------------------------------------------------
15,311,011
----------------------------------------------------------------------------------------------------------------------------------
Virginia -- 1.6%
200,000 AAA Fairfax County, VA Redevelopment & Housing Authority Multi-Family Housing
Revenue, FHA-Insured, Paul Spring, 5.900% due 6/15/17 199,250
1,000,000 BBB Peninsula Ports Authority, VA Coal Terminal Revenue, (Dominion Terminal
Association Project), 7.375% due 6/1/20 1,031,250
500,000 AAA Prince William County, VA IDA Revenue, Series A, GNMA-Collateralized,
6.250% due 12/20/27 507,500
----------------------------------------------------------------------------------------------------------------------------------
1,738,000
----------------------------------------------------------------------------------------------------------------------------------
Washington -- 0.5%
Washington State Public Power Supply System:
250,000 AAA Nuclear Project #1, Series B, FGIC-Insured, 7.125% due 7/1/16 288,437
250,000 AAA Nuclear Project #2, Series C, (Pre-Refunded -- Escrowed with U.S. government
securities to 1/1/01 Call @ 102), 7.625% due 7/1/10 260,117
----------------------------------------------------------------------------------------------------------------------------------
548,554
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
58 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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) $ 257,812
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 1,067,500
----------------------------------------------------------------------------------------------------------------------------------
1,325,312
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $109,439,546**) $108,558,732
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) All ratings are by Standard & Poor's Ratings Service, except those which
are identified by an asterisk (*) are rated by Moody's Investors Service,
Inc. and those which are identified by a double dagger (++) are rated by
Fitch IBCA, Inc.
(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, normally to qualified institutional buyers.
(e) Variable rate obligation payable at par on demand at any time on no more
than seven days notice.
(f) Income from this issue is considered a preference item for purposes of
calculating the alternative minimum tax. ** Aggregate cost for Federal
income tax purposes is substantially the same.
See pages 66 and 67 for bond ratings and certain security descriptions.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 59
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Small Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 92.4%
Auto & Transportation -- 1.7%
96,600 American Axle & Manufacturing Holdings, Inc.* $ 1,449,000
107,100 Aviation Sales Co.*+ 408,319
24,300 CNF Transportation Inc. 678,881
99,900 Dura Automotive Systems, Inc., Class B Shares* 1,623,375
33,800 Hayes Lemmerz International, Inc.* 532,350
39,300 Mesaba Holdings, Inc.* 491,250
20,500 SkyWest, Inc. 863,563
--------------------------------------------------------------------------------------------------------------
6,046,738
--------------------------------------------------------------------------------------------------------------
Consumer Discretionary -- 14.9%
65,066 99 Cents Only Stores* 2,448,108
61,400 The Ackerley Group, Inc. 798,200
32,100 Action Performance Cos., Inc.*+ 296,925
44,900 Apollo Group, Inc., Class A Shares* 1,302,100
35,700 bebe stores, inc.*+ 325,763
29,700 Blyth Industries, Inc. 881,719
113,900 The Bombay Company, Inc.* 412,887
41,400 Borders Group, Inc.* 657,225
57,600 CEC Entertainment Inc.* 1,728,000
21,100 Central Newspapers, Inc., Class A Shares 647,506
53,700 Church & Dwight Co., Inc. 959,887
32,900 Citadel Communications Corp.* 1,285,156
20,600 Claire's Stores, Inc. 379,813
40,500 Complete Business Solutions, Inc.* 926,437
100,500 Copart, Inc.* 1,733,625
15,600 Cox Radio, Inc., Class A Shares* 1,131,000
57,000 The Dial Corp. 794,437
20,600 Dollar Tree Stores, Inc.* 1,192,225
43,700 Emmis Communications Corp., Class A Shares*+ 1,857,250
57,010 Encompass Services Corp.* 395,507
47,300 Ethan Allen Interiors Inc. 1,262,319
58,100 Furniture Brands International, Inc.* 1,085,744
24,400 Houghton Mifflin Co. 1,014,125
70,000 Interim Services Inc.* 1,198,750
31,912 International Game Technology*+ 777,855
62,800 Jack in the Box Inc.* 1,538,600
48,600 Jones Apparel Group, Inc.* 1,442,813
44,700 Jostens, Inc. 1,103,531
44,600 Launch Media, Inc.* 465,513
38,200 Linens 'n Things, Inc.* 1,179,425
64,300 The Men's Wearhouse, Inc.* 1,378,431
40,000 Metamor Worldwide, Inc.* 775,000
45,100 Navigant Consulting, Inc.* 448,181
21,900 Outback Steakhouse, Inc.* 717,225
54,987 Pacific Sunwear of California, Inc.*+ 1,872,995
30,800 Performance Food Group Co.* 812,350
42,600 Pre-Paid Legal Services, Inc.* 1,363,200
16,500 Radio One, Inc.* 957,000
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
60 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Small Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Consumer Discretionary -- 14.9% (continued)
30,650 Regis Corp. $ 358,222
52,200 Rent-Way, Inc.* 1,353,938
51,200 Ross Stores, Inc. 1,062,400
100,900 Samsonite Corp.*+ 529,725
54,800 Shaw Industries, Inc. 866,525
51,400 Sirius Satellite Radio Inc.*+ 2,039,937
21,600 Sotheby's Holdings, Inc., Class A Shares 357,750
119,500 The Source Information Management Co.*+ 1,762,625
56,000 TeleTech Holdings, Inc.* 1,827,000
29,200 Tupperware Corp. 551,150
30,300 United Stationers Inc. 1,011,263
45,000 Westwood One, Inc.* 1,591,875
106,800 WMS Industries Inc. 934,500
--------------------------------------------------------------------------------------------------------------
53,793,737
--------------------------------------------------------------------------------------------------------------
Consumer Staples -- 0.4%
108,600 The Earthgrains Co. 1,527,188
--------------------------------------------------------------------------------------------------------------
Finance -- 7.1%
54,300 Affiliated Managers Group, Inc.* 2,178,788
119,000 AmeriCredit Corp.* 2,223,813
12,400 Astoria Financial Corp. 341,775
22,045 Commerce Bancorp, Inc. 874,911
38,000 Community First Bankshares, Inc. 641,250
21,000 Dain Rauscher Corp. 1,300,687
67,000 Doral Financial Corp. 799,812
32,700 Eaton Vance Corp. 1,383,619
31,210 Fidelity National Financial, Inc. 460,347
20,000 The FINOVA Group Inc. 256,250
30,600 FPIC Insurance Group, Inc.*+ 439,875
15,800 Greater Bay Bancorp 671,747
31,600 GreenPoint Financial Corp. 588,550
48,800 HCC Insurance Holdings, Inc. 573,400
40,800 HSB Group, Inc. 1,183,200
25,435 Hudson United Bancorp 573,877
32,700 Metris Cos. Inc. 1,226,250
54,000 North Fork Bancorp., Inc. 874,125
40,800 Oriental Financial Group Inc. 693,600
84,000 Pacific Century Financial Corp. 1,727,250
33,200 Queens County Bancorp Inc. 674,375
26,200 Radian Group Inc. 1,334,562
20,900 S1 Corp.* 1,135,131
19,300 Silicon Valley Bancshares 1,191,775
18,300 Southwest Securities Group, Inc. 752,587
49,700 Sovereign Bancorp, Inc. 341,687
52,600 United Bankshares, Inc. 1,147,337
--------------------------------------------------------------------------------------------------------------
25,590,580
--------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 61
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Small Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Health Care -- 13.4%
10,300 Abgenix, Inc.* $ 922,494
10,550 Affymetrix, Inc.*+ 1,424,909
14,300 Alkermes, Inc.*+ 761,475
54,300 Bergen Brunswig Corp., Class A Shares 271,500
68,100 CONMED Corp.* 1,779,113
42,500 The Cooper Cos., Inc. 1,429,062
119,000 Covance Inc.* 1,093,313
42,800 Cytyc Corp.*+ 1,915,300
6,300 Enzo Biochem, Inc.* 255,150
46,000 Enzon, Inc.*+ 1,713,500
33,100 Gilead Sciences, Inc.* 1,793,606
70,700 Hanger Orthopedic Group, Inc.* 353,500
31,760 Human Genome Sciences, Inc.* 2,431,625
42,800 IDEC Pharmaceuticals Corp.*+ 2,739,200
17,500 ImClone Systems Inc.* 1,592,500
16,620 Incyte Pharmaceuticals, Inc.* 1,279,740
73,800 InfoCure Corp.* 673,425
62,425 Jones Pharma Inc.+ 1,798,620
38,260 King Pharmaceuticals, Inc.*+ 1,889,087
94,600 Ligand Pharmaceuticals Inc., Class B Shares* 1,265,275
52,250 Medicis Pharmaceuticals Corp., Class A Shares* 2,285,938
42,600 MedQuist Inc.* 1,509,637
65,800 Mentor Corp. 1,163,838
45,400 Millennium Pharmaceuticals, Inc.* 3,603,625
31,100 Ocular Sciences, Inc.* 515,094
66,300 Omnicare, Inc. 1,006,931
67,800 Orthodontic Centers of America, Inc.* 1,436,513
86,100 Pharmaceutical Product Development, Inc.* 1,447,556
67,225 PSS World Medical, Inc.* 577,715
38,150 Res-Care, Inc.*+ 417,266
219,400 SICOR Inc.*+ 2,481,963
36,800 STERIS Corp.* 331,200
43,600 Sunrise Assisted Living, Inc.* 686,700
52,100 Sybron International Corp.* 1,621,613
35,900 Transkaryotic Therapies, Inc.*+ 1,074,756
15,200 Universal Health Services, Inc., Class B Shares* 832,200
--------------------------------------------------------------------------------------------------------------
48,374,939
--------------------------------------------------------------------------------------------------------------
Materials & Processing -- 3.6%
117,200 Airgas, Inc.* 688,550
32,900 Centex Construction Products, Inc. 1,015,788
29,100 CoStar Group Inc.* 697,945
22,200 Cousins Properties, Inc. 871,350
23,700 Federal Realty Investment Trust 503,625
34,600 NL Industries, Inc. 562,250
23,400 NVR, Inc.* 1,456,650
26,500 Reckson Associates Realty Corp. 531,656
19,700 The Rouse Co. 461,719
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
62 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Small Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Materials & Processing -- 3.6% (continued)
52,700 Spartech Corp. $ 1,831,325
63,950 Stillwater Mining Co.* 1,790,600
17,900 USG Corp. 747,325
32,300 Vornado Realty Trust 1,114,350
62,700 Wausau-Mosinee Paper Corp. 760,238
--------------------------------------------------------------------------------------------------------------
13,033,371
--------------------------------------------------------------------------------------------------------------
Other Energy -- 1.5%
47,600 Barrett Resources Corp.* 1,511,300
40,400 Basin Exploration, Inc.* 565,600
16,600 Devon Energy Corp.+ 799,913
29,264 Ocean Energy Inc.* 378,603
91,200 Plains Resources Inc.* 1,293,900
49,900 R&B Falcon Corp.* 1,035,425
--------------------------------------------------------------------------------------------------------------
5,584,741
--------------------------------------------------------------------------------------------------------------
Producer Durables -- 4.2%
76,200 Astec Industries, Inc.* 1,914,525
24,800 C&D Technologies, Inc. 1,598,050
49,400 CommScope, Inc.* 2,346,500
19,600 Jacobs Engineering Group Inc.* 613,725
45,300 Kellstrom Industries, Inc.*+ 183,323
43,500 The Kroll-O'Gara Co.* 334,406
35,200 Lennar Corp.+ 655,600
41,800 The Manitowoc Co., Inc. 1,387,238
55,100 Mettler-Toledo International Inc.* 1,900,950
19,000 Nordson Corp. 849,063
40,400 PerkinElmer, Inc. 2,211,900
106,700 Waste Connections, Inc.* 1,333,750
--------------------------------------------------------------------------------------------------------------
15,329,030
--------------------------------------------------------------------------------------------------------------
Technology -- 42.5%
33,500 ADTRAN, Inc.* 2,263,344
70,300 Advanced Fibre Communications, Inc.*+ 3,211,831
43,400 Alpha Industries, Inc. 2,256,800
64,800 American Management Systems, Inc.* 2,397,600
103,400 Amkor Technology, Inc.*+ 6,326,787
16,300 ANADIGICS, Inc.* 1,226,575
29,200 Ancor Communications, Inc.* 881,475
89,500 AnswerThink Consulting Group, Inc.*+ 1,722,875
54,900 Apex Inc.* 1,622,981
49,400 AppliedTheory Corp.* 543,400
28,000 Aspect Development, Inc.* 1,935,500
45,300 Aspen Technology, Inc.* 1,602,487
80,300 AVT Corp.* 888,319
51,200 BindView Development Corp.* 412,800
22,400 Black Box Corp.* 1,723,400
120,100 BroadVision, Inc.*+ 5,276,894
53,000 Burr-Brown Corp.*+ 3,610,625
52,900 C-Cube Microsystems Inc.* 3,398,825
46,400 CACI International Inc., Class A Shares* 1,087,500
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 63
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Small Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Technology -- 42.5% (continued)
29,800 Carrier Access Corp.*+ $ 1,300,025
16,822 CIBER, Inc.*+ 303,847
22,100 Cognex Corp.* 1,256,938
41,200 Cognizant Technology Solutions Corp.* 1,890,050
73,000 Computer Network Technology Corp.* 1,177,125
28,100 Concentric Network Corp.* 1,222,350
20,700 Credence Systems Corp.* 2,954,925
11,600 Cree, Inc.*+ 1,687,800
89,100 Cypress Semiconductor Corp.* 4,627,631
37,300 Dallas Semiconductor Corp. 1,601,569
46,300 Diamond Technology Partners Inc., Class A Shares* 3,663,488
49,600 Digital Microwave Corp.* 1,832,100
48,300 Dycom Industries, Inc.* 2,511,600
54,600 Electro Scientific Industries, Inc.* 3,443,212
35,700 Emulex Corp.* 1,619,888
59,700 Exchange Applications, Inc.* 727,594
18,193 Flextronics International Ltd.* 1,278,058
44,100 Getty Images, Inc.*+ 1,339,537
15,200 Harmonic Inc.*+ 1,121,950
32,600 Helix Technology Corp. 1,664,638
3,600 hi/fn, inc.* 122,175
21,945 Hyperion Solutions Corp.* 665,551
47,000 iGATE Capital Corp.* 1,410,000
45,300 In Focus Systems, Inc.* 1,356,169
176,100 Informix Corp.* 1,937,100
31,400 InterDigital Communications Corp.* 649,588
50,800 Inter-Tel, Inc., Class A Shares 1,028,700
77,400 InterVoice-Brite, Inc.* 1,233,562
264,500 Iomega Corp.* 942,281
32,100 ISS Group, Inc.* 2,903,044
32,500 Juno Online Services, Inc.*+ 322,969
95,500 Lam Research Corp.*+ 4,381,062
27,700 Lattice Semiconductor Corp.*+ 1,866,287
32,100 MasTec, Inc.* 2,772,637
125,600 Mentor Graphics Corp.* 1,648,500
64,400 Mercury Interactive Corp.* 5,796,000
17,600 Micrel, Inc.* 1,522,400
12,900 Micromuse Inc.* 1,265,812
51,000 MicroStrategy Inc.*+ 1,319,625
60,100 National Computer Systems, Inc. 3,091,394
25,400 Open Market, Inc.* 261,937
31,600 Peregrine Systems, Inc.* 760,375
41,400 Policy Management Systems Corp.* 548,550
28,400 Polycom, Inc.* 2,247,150
8,900 Powerwave Technologies, Inc.* 1,851,756
53,500 RadiSys Corp.* 2,213,562
40,000 Rare Medium Group, Inc.* 822,500
55,700 RWD Technologies, Inc.* 445,600
34,800 Sanchez Computer Associates, Inc.*+ 674,250
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
64 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Small Cap Fund
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Technology -- 42.5% (continued)
30,100 SanDisk Corp.* $ 2,757,913
40,400 Sawtek Inc.* 1,931,625
21,000 SCM Microsystems, Inc.*+ 1,661,625
68,000 Sensormatic Electronics Corp.* 1,134,750
52,900 SpeedFam-IPEC, Inc.* 836,481
9,000 Terayon Communication Systems, Inc.* 837,000
37,000 TranSwitch Corp.* 3,258,313
36,800 TriQuint Semiconductor, Inc.* 3,783,500
32,300 Varian Semiconductor Equipment Associates, Inc.* 2,172,175
44,400 VerticalNet, Inc.*+ 2,397,600
25,600 Visual Networks, Inc.* 998,400
68,000 Wind River Systems, Inc.*+ 2,902,750
12,200 WorldGate Communications, Inc.*+ 287,462
30,900 Xircom, Inc.* 1,218,619
33,800 Zebra Technologies Corp.* 1,926,600
--------------------------------------------------------------------------------------------------------------
153,779,692
--------------------------------------------------------------------------------------------------------------
Utilities -- 3.1%
204,800 e.spire Communications, Inc.* 1,036,800
58,300 Intermedia Communications Inc.* 2,375,725
53,900 ITC DeltaCom, Inc.* 1,771,962
26,700 Leap Wireless International, Inc.* 1,371,712
47,000 MGC Communications, Inc.* 2,303,000
35,700 Pinnacle Holdings Inc.* 2,005,894
20,500 US LEC Corp., Class A Shares* 535,563
--------------------------------------------------------------------------------------------------------------
11,400,656
--------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $327,830,698) 334,460,672
--------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY BILLS -- 0.5%
$ 1,920,000 U.S. Treasury Bills, due 6/15/00 (Cost -- $1,905,787) 1,905,787
--------------------------------------------------------------------------------------------------------------
SUB-TOTAL INVESTMENTS
(Cost -- $329,736,485) 336,366,459
--------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 7.1%
25,627,000 Chase Securities Inc., 5.550% dated 4/28/00, due 5/1/00;
Proceeds at maturity -- $25,638,850; (Fully collateralized
by U.S. Treasury Notes, 4.750% due 11/15/08;
Market value -- $26,141,550) (Cost -- $25,627,000) 25,627,000
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $355,363,485**) $361,993,459
--------------------------------------------------------------------------------------------------------------
</TABLE>
* 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 65
<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.
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.
--------------------------------------------------------------------------------
66 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Bond Ratings (unaudited) (continued)
--------------------------------------------------------------------------------
Fitch IBCA, Inc. ("Fitch") -- Rating may be modified by the addition of a plus
(+) or minus (-) sign to show relative standings with the major rating
categories.
AAA --Bonds rated AAAby Fitch have the lowest expectation of credit risk. The
obligor has an exceptionally strong capacity for timely payment of
financial commitments which is highly unlikely to be adversely affected
by foreseeable events.
AA --Bonds and preferred stock considered to be investment grade and of very
high credit quality. The obligor's ability to pay interest and/or
dividends and repay principal is very strong, although not quite as
strong as bonds rated `AAA'. Because bonds and preferred stock rated in
the `AAA' and `AA' categories are not significantly vulnerable to
foreseeable future developments, short-term debt of these issuers is
generally rated `F-1+ '.
A --Bonds and preferred stock considered to be investment grade and of high
credit quality. The obligor's ability to pay interest and/or dividends
and repay principal is considered to be strong, but may be more
vulnerable to adverse changes in economic conditions and circumstances
than debt or preferred securities with higher ratings.
BBB --Bonds rated BBBby Fitch currently have a low expectation of credit
risk. The capacity for timely payment of financial commitments is
considered to be adequate. Adverse changes in economic condition and
circumstances, however, are more likely to impair this capacity. This
is the lowest investment grade category assigned by Fitch.
BB --Bonds rated BB by Fitch carry the possibility of credit risk
developing, particularly as the result of adverse economic change over
time. Business or financial alternatives may, however, be available to
allow financial commitments to be met. Securities rated in this
category are not considered by Fitch to be investment grade.
NR --Indicates that the bond is not rated by Standard & Poor's, Moody's or
Fitch.
--------------------------------------------------------------------------------
Short-Term Security Ratings (unaudited)
--------------------------------------------------------------------------------
A-1 --Standard & Poor's highest commercial paper and variable-rate demand
obligation (VRDO) rating indicating that the degree of safely regarding
timely payment is either overwhelming or very strong; those issued
determined to possess overwhelming safety characteristics are denoted
with a (+) sign.
VMIG 1 --Moody's highest rating for issues having demand feature -- VRDO.
--------------------------------------------------------------------------------
The Concert Investment Series 67
<PAGE>
--------------------------------------------------------------------------------
Security Description (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
--------------------------------------------------------------------------------
68 2000 Semi-Annual Report to Shareholders
<PAGE>
(This page intentionally left blank.)
--------------------------------------------------------------------------------
The Concert Investment Series 69
<PAGE>
--------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Government Growth Growth and
Fund Fund Income Fund
====================================================================================================================================
<S> <C> <C> <C>
ASSETS:
Investments, at cost $169,455,039 $3,520,138,191 $1,199,217,979
Repurchase agreements, at cost -- 81,615,000 --
====================================================================================================================================
Investments, at value $169,272,131 $5,829,668,982 $1,534,833,343
Repurchase agreements, at value -- 81,615,000 --
Cash 75,180 768 618,620
Collateral for securities on loan (Note 12) -- -- 143,798,677
Receivable for securities sold -- 1,054,962 --
Receivable for Fund shares sold 6,182 467,149 147,931
Dividends and interest receivable 830,220 6,673,763 1,240,001
Receivable from broker - variation margin -- -- --
Receivable from manager -- -- --
Deferred organization costs -- -- --
Other assets 83,359 693,940 144,471
------------------------------------------------------------------------------------------------------------------------------------
Total Assets 170,267,072 5,920,174,564 1,680,783,043
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 867,336 -- --
Investment advisory fees payable 99,807 2,481,027 773,116
Trustees retirement plan 88,194 1,219,738 317,870
Distribution fees payable 24,081 698,376 334,330
Payable for Fund shares purchased 200 2,535 2,171
Payable for securities purchased -- 4,051,825 --
Payable for securities on loan (Note 12) -- -- 143,798,677
Payable for open forward foreign
currency contracts (Note 9) -- -- --
Payable to bank -- -- --
Accrued expenses 251,866 1,420,527 1,126,635
------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 1,331,484 9,874,028 146,352,799
------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $168,935,588 $5,910,300,536 $1,534,430,244
====================================================================================================================================
NET ASSETS:
Par value of shares of beneficial interest $ 176,700 $ 2,209,361 $ 804,116
Capital paid in excess of par value 217,072,459 3,186,992,018 1,153,047,978
Undistributed (overdistributed) net
investment income 626,760 399,556 124,292
Accumulated net investment loss -- -- --
Accumulated net realized gain (loss)
on security transactions and futures contracts (48,757,423) 411,168,810 44,838,494
Net unrealized appreciation (depreciation) of
investments, futures contracts and foreign currencies (182,908) 2,309,530,791 335,615,364
------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $168,935,588 $5,910,300,536 $1,534,430,244
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
70 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Mid Cap Municipal Small Cap
Equity Fund Fund Bond Fund Fund
====================================================================================================================================
<S> <C> <C> <C>
$130,627,334 $44,106,810 $109,439,546 $329,736,485
17,976,000 9,502,000 -- 25,627,000
====================================================================================================================================
$189,865,767 $53,896,199 $108,558,732 $336,366,459
17,976,000 9,502,000 -- 25,627,000
61,201 350 -- 902
-- -- -- 43,848,459
-- -- 25,000 --
704,188 139,476 50,000 117,631
159,291 21,000 1,808,758 37,756
-- 60,500 -- 358,875
-- 114,586 -- --
6,981 -- -- 5,552
-- -- 16,339 --
------------------------------------------------------------------------------------------------------------------------------------
208,773,428 63,734,111 110,458,829 406,362,634
------------------------------------------------------------------------------------------------------------------------------------
-- -- 456,694 --
155,672 54,596 50,749 180,855
-- -- -- 16,611
176,153 47,409 16,335 230,591
5,961 1,053 -- --
2,042,194 -- 5,140,469 --
-- -- -- 43,848,459
49,861 -- -- --
-- -- 27,736 --
57,301 44,001 179,635 276,511
------------------------------------------------------------------------------------------------------------------------------------
2,487,142 147,059 5,871,618 44,553,027
------------------------------------------------------------------------------------------------------------------------------------
$206,286,286 $63,587,052 $104,587,211 $361,809,607
====================================================================================================================================
$ 44,885 $ 40,982 $ 81,250 $ 160,272
139,215,676 52,831,416 106,957,869 314,954,350
-- -- (49,073) --
(1,253,386) (107,887) -- (1,710,418)
9,049,341 1,075,217 (1,522,021) 42,160,540
59,229,770 9,747,324 (880,814) 6,244,863
------------------------------------------------------------------------------------------------------------------------------------
$206,286,286 $63,587,052 $104,587,211 $361,809,607
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 71
<PAGE>
--------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Government Growth Growth and
Fund Fund Income Fund
====================================================================================================================================
<S> <C> <C> <C>
Shares Outstanding:
Class 1 14,058,758 185,135,242 57,251,229
-------------------------------------------------------------------------------------------------------------------------------
Class A 2,098,195 17,295,652 10,847,808
-------------------------------------------------------------------------------------------------------------------------------
Class B 1,513,046 18,505,196 12,312,538
-------------------------------------------------------------------------------------------------------------------------------
Net Asset Value:
Class 1 (and redemption price) $9.56 $26.80 $19.13
-------------------------------------------------------------------------------------------------------------------------------
Class A (and redemption price) $9.54 $26.73 $19.12
-------------------------------------------------------------------------------------------------------------------------------
Class B * $9.56 $26.24 $18.85
-------------------------------------------------------------------------------------------------------------------------------
Maximum Public Offering Price Per Share:
Class 1:
(net asset value plus 9.29% of net asset value per share) -- $29.29 $20.91
-------------------------------------------------------------------------------------------------------------------------------
(net asset value plus 7.24% of net asset value per share) $10.25 -- --
-------------------------------------------------------------------------------------------------------------------------------
(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) -- $28.14 $20.13
-------------------------------------------------------------------------------------------------------------------------------
(net asset value plus 4.71% of net asset value per share) $9.99 -- --
===============================================================================================================================
</TABLE>
* Redemption price is NAV of Class B shares reduced by a 5.00% CDSC for
Growth, Growth and Income, International Equity, Mid Cap and Small Cap
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.
--------------------------------------------------------------------------------
72 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Mid Cap Municipal Small Cap
Equity Fund Fund Bond Fund Fund
====================================================================================================================================
<S> <C> <C> <C> <C>
192,933 136,859 5,167,595 546,232
------------------------------------------------------------------------------------------------------------------------------------
1,793,048 1,461,684 2,444,453 7,632,848
------------------------------------------------------------------------------------------------------------------------------------
2,502,541 2,499,686 512,986 7,848,100
------------------------------------------------------------------------------------------------------------------------------------
$47.48 $15.63 $12.87 $23.49
------------------------------------------------------------------------------------------------------------------------------------
$46.92 $15.59 $12.87 $23.14
------------------------------------------------------------------------------------------------------------------------------------
$45.15 $15.47 $12.86 $21.96
------------------------------------------------------------------------------------------------------------------------------------
$51.89 $17.08 -- $25.67
------------------------------------------------------------------------------------------------------------------------------------
-- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
-- -- $13.51 --
------------------------------------------------------------------------------------------------------------------------------------
$49.39 $16.41 -- $24.36
------------------------------------------------------------------------------------------------------------------------------------
-- -- $13.48 --
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 73
<PAGE>
--------------------------------------------------------------------------------
Statements of Operations (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Government Growth Growth and
Fund Fund Income Fund
====================================================================================================================================
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 6,578,714 $ 7,235,160 $ 10,000,302
Dividends -- 17,870,848 146,990
Less: Foreign withholding tax -- (86,683) (4,848)
------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 6,578,714 25,019,325 10,142,444
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees (Note 2) 554,600 15,204,145 4,842,647
Distribution fees (Note 2) 106,736 2,623,419 1,348,128
Shareholder and system servicing fees 105,417 4,592,801 1,265,998
Registration fees 29,589 132,235 66,568
Shareholder communications 24,137 609,039 174,041
Audit and legal 16,840 28,095 20,399
Trustees' fees 7,957 154,078 71,589
Custody 5,312 94,817 32,181
Amortization of deferred organization costs -- -- --
Other 6,929 21,384 10,029
------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 857,517 23,460,013 7,831,580
Less: Expense reimbursement (Note 2) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 857,517 23,460,013 7,831,580
------------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 5,721,197 1,559,312 2,310,864
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS AND
FOREIGN CURRENCIES (NOTES 4, 7 AND 9):
Realized Gain (Loss) From:
Security transactions (6,112,772) 414,522,083 46,886,924
Futures contracts (723,664) -- --
Foreign currency transactions -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) (6,836,436) 414,522,083 46,886,924
------------------------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation (Depreciation) of
Investments, Futures Contracts and Foreign Currencies:
Beginning of period (2,834,702) 1,837,473,261 300,813,424
End of period (182,908) 2,309,530,791 335,615,364
------------------------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation (Depreciation) 2,651,794 472,057,530 34,801,940
------------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments, Futures Contracts
and Foreign Currencies (4,184,642) 886,579,613 81,688,864
------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations $1,536,555 $ 888,138,925 $ 83,999,728
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
74 2000 Semi-Annual Report to Shareholder
<PAGE>
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Mid Cap Municipal Small Cap
Equity Fund Fund Bond Fund Fund
====================================================================================================================================
<S> <C> <C> <C> <C>
$ 184,506 $ 218,454 $3,330,557 $ 894,580
243,046 91,541 -- 528,612
(28,485) -- -- (2,070)
------------------------------------------------------------------------------------------------------------------------------------
399,067 309,995 3,330,557 1,421,122
------------------------------------------------------------------------------------------------------------------------------------
805,717 160,420 331,573 1,140,280
513,645 150,516 78,609 1,043,059
140,286 76,234 111,180 766,195
49,844 99,745 32,543 52,138
27,511 3,743 14,263 76,513
23,957 9,400 18,149 20,343
7,406 1,000 7,891 11,820
25,257 12,600 3,482 7,804
2,084 -- -- 2,084
2,296 3,800 15,500 5,353
------------------------------------------------------------------------------------------------------------------------------------
1,598,003 517,458 613,190 3,125,589
-- (99,576) -- --
------------------------------------------------------------------------------------------------------------------------------------
1,598,003 417,882 613,190 3,125,589
------------------------------------------------------------------------------------------------------------------------------------
(1,198,936) (107,887) 2,717,367 (1,704,467)
------------------------------------------------------------------------------------------------------------------------------------
9,051,210 1,194,708 (998,010) 43,389,890
-- 794,429 -- (1,039,396)
(54,450) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
8,996,760 1,989,137 (998,010) 42,350,494
------------------------------------------------------------------------------------------------------------------------------------
35,969,950 1,632,967 (1,820,240) (489,794)
59,229,770 9,747,324 (880,814) 6,244,863
------------------------------------------------------------------------------------------------------------------------------------
23,259,820 8,114,357 939,426 6,734,657
------------------------------------------------------------------------------------------------------------------------------------
32,256,580 10,103,494 (58,584) 49,085,151
------------------------------------------------------------------------------------------------------------------------------------
$31,057,644 $ 9,995,607 $2,658,783 $47,380,684
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 75
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Government Growth Growth and
Fund Fund Income Fund
====================================================================================================================================
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 5,721,197 $ 1,559,312 $ 2,310,864
Net realized gain (loss) (6,836,436) 414,522,083 46,886,924
Change in net unrealized appreciation (depreciation) 2,651,794 472,057,530 34,801,940
------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 1,536,555 888,138,925 83,999,728
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM (NOTE 3):
Net investment income (5,061,048) (12,813,849) (2,128,273)
Net realized gains -- (334,392,189) (241,899,488)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (5,061,048) (347,206,038) (244,027,761)
------------------------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 16):
Net proceeds from sale of shares 11,440,814 296,090,798 101,676,855
Net asset value of shares issued for
reinvestment of dividends 4,132,643 346,911,626 243,819,859
Cost of shares reacquired (43,016,952) (449,442,179) (161,731,277)
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions (27,443,495) 193,560,245 183,765,437
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (30,967,988) 734,493,132 23,737,404
NET ASSETS:
Beginning of period 199,903,576 5,175,807,404 1,510,692,840
------------------------------------------------------------------------------------------------------------------------------------
End of period* $168,935,588 $5,910,300,536 $1,534,430,244
====================================================================================================================================
* Includes undistributed (overdistributed)
net investment income of: $626,760 $399,556 $124,292
------------------------------------------------------------------------------------------------------------------------------------
* Includes accumulated net investment loss of: -- -- --
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
2000 Semi-Annual Report to Shareholders 76
<PAGE>
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Mid Cap Municipal Small Cap
Equity Fund Fund Bond Fund Fund
====================================================================================================================================
<S> <C> <C> <C>
$ (1,198,936) $ (107,887) $ 2,717,367 $ (1,704,467)
8,996,760 1,989,137 (998,010) 42,350,494
23,259,820 8,114,357 939,426 6,734,657
------------------------------------------------------------------------------------------------------------------------------------
31,057,644 9,995,607 2,658,783 47,380,684
------------------------------------------------------------------------------------------------------------------------------------
-- -- (2,882,303) --
(2,095,115) -- -- (75,211,225)
------------------------------------------------------------------------------------------------------------------------------------
(2,095,115) -- (2,882,303) (75,211,225)
------------------------------------------------------------------------------------------------------------------------------------
108,241,575 29,469,379 9,390,503 72,975,985
2,046,141 -- 2,303,244 74,955,816
(15,719,877) (3,767,976) (24,005,696) (34,211,796)
------------------------------------------------------------------------------------------------------------------------------------
94,567,839 25,701,403 (12,311,949) 113,720,005
------------------------------------------------------------------------------------------------------------------------------------
123,530,368 35,697,010 `(12,535,469) 85,889,464
82,755,918 27,890,042 117,122,680 275,920,143
------------------------------------------------------------------------------------------------------------------------------------
$206,286,286 $63,587,052 $104,587,211 $361,809,607
====================================================================================================================================
-- -- $(49,073) --
------------------------------------------------------------------------------------------------------------------------------------
$(1,253,386) $(107,887) -- $(1,710,418)
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 77
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Government Growth Growth and
Fund Fund Income Fund
====================================================================================================================================
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 11,484,654 $ 13,091,502 $ 4,140,150
Net realized gain (loss) (14,929,868) 349,982,436 242,433,122
Change in net unrealized appreciation (depreciation) (4,187,618) 1,037,236,660 17,881,827
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations (7,632,832) 1,400,310,598 264,455,099
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM (NOTE 3):
Net investment income (11,568,080) (20,153,502) (4,140,150)
Net realized gains -- (371,663,728) (56,051,830)
Capital (1,061,348) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (12,629,428) (391,817,230) (60,191,980)
------------------------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 16):
Net proceeds from sale of shares 42,064,731 501,492,120 200,988,247
Net asset value of shares issued for
reinvestment of dividends 12,536,444 391,817,230 60,191,853
Cost of shares reacquired (75,932,582) (744,554,174) (294,359,957)
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions (21,331,407) 148,755,176 (33,179,857)
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (41,593,667) 1,157,248,544 171,083,262
NET ASSETS:
Beginning of year 241,497,243 4,018,558,860 1,339,609,578
------------------------------------------------------------------------------------------------------------------------------------
End of year* $199,903,576 $5,175,807,404 $1,510,692,840
====================================================================================================================================
* Includes undistributed (overdistributed)
net investment income of: $(33,389) $11,654,093 $(58,299)
------------------------------------------------------------------------------------------------------------------------------------
* Includes accumulated net investment loss of: -- -- --
====================================================================================================================================
</TABLE>
(a) For the period from March 15, 1999 (commencement of operations) to October
31, 1999.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
78 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
For the Year Ended October 31, 1999
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Mid Cap Municipal Small Cap
Equity Fund Fund(a) Bond Fund Fund
====================================================================================================================================
<S> <C> <C> <C>
$ (1,038,506) $ (35,600) $ 5,605,684 $ (3,056,105)
3,033,442 (913,920) (524,011) 78,109,456
28,875,283 1,632,967 (10,787,407) (7,787,875)
------------------------------------------------------------------------------------------------------------------------------------
30,870,219 683,447 (5,705,734) 67,265,476
------------------------------------------------------------------------------------------------------------------------------------
-- -- (5,901,230) --
-- -- (1,847,449) (16,075,519)
-- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
-- -- (7,748,679) (16,075,519)
------------------------------------------------------------------------------------------------------------------------------------
23,412,892 30,835,135 44,847,336 66,351,027
-- -- 7,611,910 16,075,519
(10,825,712) (3,628,540) (37,315,339) (64,159,733)
------------------------------------------------------------------------------------------------------------------------------------
12,587,180 27,206,595 15,143,907 18,266,813
------------------------------------------------------------------------------------------------------------------------------------
43,457,399 27,890,042 1,689,494 69,456,770
39,298,519 -- 115,433,186 206,463,373
------------------------------------------------------------------------------------------------------------------------------------
$82,755,918 $27,890,042 $117,122,680 $275,920,143
====================================================================================================================================
-- -- $115,863 --
------------------------------------------------------------------------------------------------------------------------------------
-- -- -- $(5,951)
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series 79
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
The Government, Growth, Growth and Income, International Equity, Mid Cap,
Municipal Bond and Small Cap, formerly known as Emerging Growth, 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
Small Cap, formerly known as 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
--------------------------------------------------------------------------------
80 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
regulations which may differ from generally accepted accounting principles. At
October 31, 1999, reclassifications were made to the capital accounts of the
Government, Growth, International Equity, Mid Cap, Municipal Bond and Small Cap
Funds to reflect permanent book/tax differences and income and gains available
for distributions under income tax regulations. In addition, a portion of
undistributed (overdistributed) net investment income amounting to $(349,683),
$(35,600) and $168,628 was reclassified to paid-in-capital for the International
Equity, Mid Cap and Small 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 International Equity and Small Cap 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"), a subsidiary of Salomon Smith Barney
Holdings Inc. ("SSBH"), which in turn is a subsidiary of Citigroup Inc.
("Citigroup") 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>
Growth, Growth and Income
and Small Cap 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 six months ended April30, 2000, SSBC reimbursed expenses pursuant to a
voluntary expense limitation agreement for the Mid Cap Fund amounting to
$99,576.
Effective October 1999, Citi Fiduciary Trust Company ("CFTC"), another
subsidiary of Citigroup, acts as the Funds' transfer agent. CFTC receives
account fees and asset-based fees that vary according to the account size and
type of account. During the six months ended April 30, 2000, the Funds paid
transfer agent fees of $69,107 to CFTC.
--------------------------------------------------------------------------------
The Concert Investment Series 81
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
CFBDS, Inc. ("CFBDS") acts as the Funds' distributor. For the six months ended
April 30, 2000, Salomon Smith Barney Inc. ("SSB") and its affiliates received
brokerage commissions of approximately $72,718.
There is a contingent deferred sales charge ("CDSC") of 5.00% on Class B shares
for the Growth, Growth and Income, International Equity, Mid Cap and Small 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 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.
SSB and CFBDS received sales charges of approximately $6,038,139 and $6,374,287,
on sales of the Funds' Class 1 and A shares for the six months ended April 30,
2000. For the six months ended April 30, 2000, CDSCs paid to CFBDS for Class B
shares were approximately:
<TABLE>
<CAPTION>
Growth International Municipal Small
Government Growth and Income Equity Mid Cap Bond Cap
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
CDSCs $47,891 $573,625 $371,825 $41,507 $25,863 $34,964 $220,958
====================================================================================================================================
</TABLE>
Pursuant to two Distribution Plans, the Funds pay a service fee with respect to
its Class A and B shares calculated at an annual rate of 0.25% of the average
daily net assets for each respective class. The Funds also pay a distribution
fee with respect to Class B shares calculated at the annual rate of 0.75% of the
average daily net assets of the class. For the six months ended April 30, 2000,
total Distribution Plan fees incurred were:
Distribution Plan Fees Class A Class B
================================================================================
Government Fund $ 27,155 $ 79,581
--------------------------------------------------------------------------------
Growth Fund 506,994 2,116,425
--------------------------------------------------------------------------------
Growth and Income Fund 243,106 1,105,022
--------------------------------------------------------------------------------
International Equity Fund 86,271 427,374
--------------------------------------------------------------------------------
Mid Cap Fund 19,239 131,277
--------------------------------------------------------------------------------
Municipal Bond Fund 40,622 37,987
--------------------------------------------------------------------------------
Small Cap Fund 217,557 825,502
================================================================================
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.
--------------------------------------------------------------------------------
82 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
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.
4. Investments
During the six months ended April 30, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
Purchases Sales
================================================================================
Government Fund $ 204,985,297 $ 239,094,868
--------------------------------------------------------------------------------
Growth Fund 1,121,985,838 1,174,834,467
--------------------------------------------------------------------------------
Growth and Income Fund 119,448,505 172,077,526
--------------------------------------------------------------------------------
International Equity Fund 99,933,467 23,213,560
--------------------------------------------------------------------------------
Mid Cap Fund 37,993,503 16,586,502
--------------------------------------------------------------------------------
Municipal Bond Fund 10,299,512 20,993,477
--------------------------------------------------------------------------------
Small Cap Fund 183,274,658 162,194,720
================================================================================
At April 30, 2000, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
<TABLE>
<CAPTION>
Appreciation
Appreciation Depreciation (Depreciation)
=============================================================================================================================
<S> <C> <C> <C>
Government Fund $ 688,046 $ (870,954) $ (182,908)
-----------------------------------------------------------------------------------------------------------------------------
Growth Fund 2,485,376,141 (175,845,350) 2,309,530,791
-----------------------------------------------------------------------------------------------------------------------------
Growth and Income Fund 432,327,539 (96,712,175) 335,615,364
-----------------------------------------------------------------------------------------------------------------------------
International Equity Fund 74,975,472 (15,737,039) 59,238,433
-----------------------------------------------------------------------------------------------------------------------------
Mid Cap Fund 11,217,535 (1,428,146) 9,789,389
-----------------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund 2,626,668 (3,507,482) (880,814)
-----------------------------------------------------------------------------------------------------------------------------
Small Cap Fund 66,756,652 (60,126,678) 6,629,974
=============================================================================================================================
</TABLE>
5. Repurchase Agreements
The Funds purchase (and its custodian takes possession of) U.S. government
securities from banks and securities dealers subject to agreements to resell the
securities to the sellers at a future date (generally, the next business day),
at an agreed-upon higher repurchase price. The Funds require continual
maintenance of the market value of the collateral in amounts at least equal to
the repurchase price.
--------------------------------------------------------------------------------
The Concert Investment Series 83
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
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.
During the six months ended April 30, 2000, the Funds did not enter into any
reverse repurchase agreements.
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 April 30, 2000, the Mid Cap and Small Cap Funds had the following open
futures contracts:
<TABLE>
<CAPTION>
Mid Cap Fund
# of Basis Market Unrealized
Purchased Contracts Contracts Expiration Value Value Loss
=============================================================================================================================
<S> <C> <C> <C> <C> <C>
MidCap 400 Index 22 6/00 $5,352,315 $5,310,250 $(42,065)
=============================================================================================================================
Small Cap Fund
# of Basis Market Unrealized
Purchased Contracts Contracts Expiration Value Value Loss
=============================================================================================================================
Russell 2000 Index 87 6/00 $22,526,611 $22,141,500 $(385,111)
=============================================================================================================================
</TABLE>
8. Option Contracts
The Government, Growth, Growth and Income, International Equity, Mid Cap and
Small 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
--------------------------------------------------------------------------------
84 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
depending on whether the sales proceeds from the closing sales transaction are
greater or less than the cost of the option. When the Fund exercises a put
option, it will realize a gain or loss from the sale of the underlying security
and the proceeds from such sale will be decreased by the premium originally
paid. When the Fund exercises a call option, the cost of the security which the
Fund purchases upon exercise will be increased by the premium originally paid.
As of April 30, 2000, the Funds held no purchased call or put options.
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 six months ended April 30, 2000, the Funds did not write any covered
call or put options.
9. Forward Foreign Currency Contracts
The InternationalEquity Fund has the ability to enter into forward foreign
currency contracts.
At April 30, 2000, 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 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 Loss
====================================================================================================================================
<S> <C> <C> <C> <C>
To Buy:
British Pound 308,233 $ 482,331 5/2/00 $ (5,293)
Euro 17,116,964 1,563,567 5/31/00 (44,568)
----------------------------------------------------------------------------------------------------------------------------------
Total Net Unrealized Loss on Forward
Foreign Currency Contracts $(49,861)
====================================================================================================================================
</TABLE>
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.
--------------------------------------------------------------------------------
The Concert Investment Series 85
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
11. Short Sales of Securities
The Growth, Growth and Income, International Equity, Mid Cap and Small 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.
At April 30, 2000, 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 April 30, 2000, the Growth and Income and Small Cap Funds loaned stocks
having a value of approximately $144,610,871 and $45,099,850, respectively.
These Funds held the following collateral for loaned securities:
Growth and Income Fund
Security Description Value
================================================================================
Time Deposits:
Bank Brussels Lambert, 6.060% due 5/1/00 $ 2,318,899
Bank of America, 6.060% due 5/1/00 35,417,922
Barclays, 5.937% due 5/1/00 7,745,027
Caisse Des Depots, 6.060% due 5/1/00 36,918,682
Fifth Third Bank, 6.060% due 5/1/00 36,918,682
Floating Rate Notes:
Amsouth Bank, 5.730% due 1/25/01 5,016,214
Goldman Sachs, 5.280% due 8/23/00 4,294,747
Morgan Stanley, 5.900% due 6/5/00 5,588,832
Morgan Stanley, 6.150% due 5/8/00 335,635
Morgan Stanley, 5.750% due 11/2/00 9,244,037
--------------------------------------------------------------------------------
Total $143,798,677
================================================================================
--------------------------------------------------------------------------------
86 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
Small Cap Fund
Security Description Value
================================================================================
Time Deposits:
Bank Brussels Lambert, 6.060% due 5/1/00 $ 781,262
Bank of America, 6.060% due 5/1/00 11,932,686
Barclays, 5.940% due 5/1/00 2,413,143
Caisse Des Depots, 6.060% due 5/1/00 12,438,308
Fifth Third Bank, 6.060% due 5/1/00 12,438,308
Floating Rate Notes:
Comerica Bank, 5.860% due 2/14/01 3,791,872
Commerzbank AG, 5.890% due 3/12/01 52,880
--------------------------------------------------------------------------------
Total $43,848,459
================================================================================
Income earned from securities lending by the Funds for the six months ended
April 30, 2000, were as follows:
Portfolio Income
================================================================================
Growth and Income Fund $ 81,422
--------------------------------------------------------------------------------
Small Cap Fund 167,916
================================================================================
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.
At April 30, 2000, the Funds did not hold any TBA securities.
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 April 30, 2000, the Fund did not hold any when-issued securities.
--------------------------------------------------------------------------------
The Concert Investment Series 87
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
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 six months ended April 30, 2000, total paid-in capital amounted to the
following for each Fund and class:
<TABLE>
<CAPTION>
Class 1 Class A Class B
===================================================================================================================================
<S> <C> <C> <C>
Government Fund $ 179,482,014 $ 21,860,592 $ 15,906,553
-----------------------------------------------------------------------------------------------------------------------------------
Growth Fund 2,456,930,762 356,686,009 375,584,608
-----------------------------------------------------------------------------------------------------------------------------------
Growth and Income Fund 725,772,130 201,686,022 226,393,942
-----------------------------------------------------------------------------------------------------------------------------------
International Equity Fund 6,416,275 50,891,595 81,952,691
-----------------------------------------------------------------------------------------------------------------------------------
Mid Cap Fund 1,874,489 18,815,157 32,182,752
-----------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund 65,244,391 34,421,684 7,373,044
-----------------------------------------------------------------------------------------------------------------------------------
Small Cap Fund 11,701,988 148,037,757 155,374,877
===================================================================================================================================
</TABLE>
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Year Ended October 31, 1999
-------------------------------- -----------------------------
Government Fund Shares Amount Shares Amount
===================================================================================================================================
<S> <C> <C> <C> <C>
Class 1
Shares sold 394,349 $ 3,798,176 1,257,665 $ 12,847,010
Shares issued on reinvestment 355,659 3,416,171 1,059,776 10,744,185
Shares reacquired (3,107,144) (29,880,997) (5,604,150) (56,776,486)
-----------------------------------------------------------------------------------------------------------------------------------
Net Decrease (2,357,136) $ (22,666,650) (3,286,709) $ (33,185,291)
===================================================================================================================================
Class A
Shares sold 558,997 $ 5,357,948 1,850,439 $ 18,712,202
Shares issued on reinvestment 46,294 443,708 105,854 1,067,253
Shares reacquired (864,835) (8,284,176) (1,206,897) (12,105,083)
-----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (259,544) $ (2,482,520) 749,396 $ 7,674,372
===================================================================================================================================
Class B
Shares sold 237,088 $ 2,284,690 1,037,836 $ 10,505,519
Shares issued on reinvestment 28,399 272,764 71,810 725,006
Shares reacquired (506,719) (4,851,779) (699,803) (7,051,013)
-----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (241,232) $ (2,294,325) 409,843 $ 4,179,512
===================================================================================================================================
</TABLE>
--------------------------------------------------------------------------------
88 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Year Ended October 31, 1999
---------------------------------- -----------------------------------
Growth Fund Shares Amount Shares Amount
==================================================================================================================================
<S> <C> <C> <C> <C>
Class 1
Shares sold 3,715,130 $ 96,275,712 9,411,963 $ 209,005,325
Shares issued on reinvestment 12,103,934 299,814,441 16,683,567 356,027,327
Shares reacquired (14,356,910) (372,744,925) (29,090,514) (649,360,808)
----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 1,462,154 $ 23,345,228 (2,994,984) $ (84,328,156)
==================================================================================================================================
Class A
Shares sold 3,866,742 $ 99,924,017 6,499,940 $ 145,825,290
Shares issued on reinvestment 928,885 22,989,917 852,135 18,167,521
Shares reacquired (1,653,279) (42,803,019) (2,401,189) (53,765,679)
----------------------------------------------------------------------------------------------------------------------------------
Net Increase 3,142,348 $ 80,110,915 4,950,886 $ 110,227,132
==================================================================================================================================
Class B
Shares sold 3,921,668 $ 99,891,069 6,586,645 $ 146,661,505
Shares issued on reinvestment 990,032 24,107,268 833,209 17,622,382
Shares reacquired (1,330,869) (33,894,235) (1,878,345) (41,427,687)
----------------------------------------------------------------------------------------------------------------------------------
Net Increase 3,580,831 $ 90,104,102 5,541,509 $ 122,856,200
==================================================================================================================================
Growth and Income Fund
==================================================================================================================================
Class 1
Shares sold 1,231,450 $ 24,151,513 2,598,797 $ 53,410,600
Shares issued on reinvestment 9,298,800 179,484,947 2,463,190 48,749,017
Shares reacquired (5,780,239) (113,322,526) (10,761,833) (221,519,010)
----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 4,750,011 $ 90,313,934 (5,699,846) $(119,359,393)
==================================================================================================================================
Class A
Shares sold 2,009,135 $ 39,074,475 3,444,529 $ 71,212,020
Shares issued on reinvestment 1,549,640 29,908,721 282,097 5,574,730
Shares reacquired (1,209,463) (23,555,034) (1,943,345) (40,176,253)
----------------------------------------------------------------------------------------------------------------------------------
Net Increase 2,349,312 $ 45,428,162 1,783,281 $ 36,610,497
==================================================================================================================================
Class B
Shares sold 1,989,793 $ 38,450,867 3,712,290 $ 76,365,627
Shares issued on reinvestment 1,805,254 34,426,191 298,328 5,868,106
Shares reacquired (1,294,220) (24,853,717) (1,593,823) (32,664,694)
----------------------------------------------------------------------------------------------------------------------------------
Net Increase 2,500,827 $ 48,023,341 2,416,795 $ 49,569,039
==================================================================================================================================
International Equity Fund
==================================================================================================================================
Class 1
Shares sold 91,851 $ 5,060,301 44,253 $ 1,056,385
Shares issued on reinvestment 1,811 84,865 -- --
Shares reacquired (15,447) (765,133) (37,660) (903,732)
----------------------------------------------------------------------------------------------------------------------------------
Net Increase 78,215 $ 4,380,033 6,593 $ 152,653
==================================================================================================================================
Class A
Shares sold 729,198 $ 37,556,564 372,018 $ 9,036,138
Shares issued on reinvestment 19,639 910,246 -- --
Shares reacquired (124,451) (6,196,414) (241,749) (5,782,818)
----------------------------------------------------------------------------------------------------------------------------------
Net Increase 624,386 $ 32,270,396 130,269 $ 3,253,320
==================================================================================================================================
Class B
Shares sold 1,330,616 $ 65,624,710 553,936 $ 13,320,369
Shares issued on reinvestment 23,507 1,051,030 -- --
Shares reacquired (178,471) (8,758,330) (180,077) (4,139,162)
----------------------------------------------------------------------------------------------------------------------------------
Net Increase 1,175,652 $ 57,917,410 373,859 $ 9,181,207
==================================================================================================================================
</TABLE>
--------------------------------------------------------------------------------
The Concert Investment Series 89
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Year Ended October 31, 1999
--------------------------------- ----------------------------
Mid Cap Fund Shares Amount Shares Amount
=================================================================================================================================
<S> <C> <C> <C> <C>
Class 1+
Shares sold 92,978 $ 1,405,055 81,549 $ 953,950
Shares issued on reinvestment -- -- -- --
Shares reacquired (17,704) (250,419) (19,964) (233,105)
---------------------------------------------------------------------------------------------------------------------------------
Net Increase 75,274 $ 1,154,636 61,585 $ 720,845
=================================================================================================================================
Class A++
Shares sold 738,012 $ 10,673,956 1,094,915 $ 12,736,023
Shares issued on reinvestment -- -- -- --
Shares reacquired (124,983) (1,749,407) (246,260) (2,831,663)
---------------------------------------------------------------------------------------------------------------------------------
Net Increase 613,029 $ 8,924,549 848,655 $ 9,904,360
=================================================================================================================================
Class B+
Shares sold 1,208,423 $ 17,390,368 1,465,219 $ 17,145,162
Shares issued on reinvestment -- -- -- --
Shares reacquired (125,685) (1,768,150) (48,271) (563,772)
---------------------------------------------------------------------------------------------------------------------------------
Net Increase 1,082,738 $ 15,622,218 1,416,948 $ 16,581,390
=================================================================================================================================
Municipal Bond Fund
=================================================================================================================================
Class 1
Shares sold 204,586 $ 2,639,137 507,297 $ 7,008,366
Shares issued on reinvestment 123,674 1,590,192 416,553 5,776,440
Shares reacquired (959,090) (12,363,082) (1,627,211) (22,405,163)
---------------------------------------------------------------------------------------------------------------------------------
Net Decrease (630,830) $ (8,133,753) (703,361) $ (9,620,357)
=================================================================================================================================
Class A
Shares sold 470,218 $ 6,052,834 2,292,682 $ 31,792,298
Shares issued on reinvestment 45,455 584,488 104,752 1,440,910
Shares reacquired (714,405) (9,181,238) (876,726) (12,027,354)
---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (198,732) $ (2,543,916) 1,520,708 $ 21,205,854
=================================================================================================================================
Class B
Shares sold 54,300 $ 698,532 436,677 $ 6,046,672
Shares issued on reinvestment 10,008 128,564 28,620 394,560
Shares reacquired (191,350) (2,461,376) (212,497) (2,882,822)
---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (127,042) $ (1,634,280) 252,800 $ 3,558,410
=================================================================================================================================
Small Cap Fund
=================================================================================================================================
Class 1
Shares sold 131,314 $ 3,416,500 84,989 $ 1,964,552
Shares issued on reinvestment 100,866 2,409,689 24,496 550,198
Shares reacquired (50,626) (1,340,644) (104,166) (2,387,190)
---------------------------------------------------------------------------------------------------------------------------------
Net Increase 181,554 $ 4,485,545 5,319 $ 127,560
=================================================================================================================================
Class A
Shares sold 1,286,712 $ 32,849,685 1,355,950 $ 31,306,266
Shares issued on reinvestment 1,556,091 36,677,056 370,018 8,251,403
Shares reacquired (702,062) (18,148,684) (1,582,836) (36,399,497)
---------------------------------------------------------------------------------------------------------------------------------
Net Increase 2,140,741 $ 51,378,057 143,132 $ 3,158,172
=================================================================================================================================
Class B
Shares sold 1,505,361 $ 36,709,800 1,475,626 $ 33,080,209
Shares issued on reinvestment 1,599,869 35,869,071 336,600 7,273,918
Shares reacquired (595,066) (14,722,468) (1,137,767) (25,373,046)
---------------------------------------------------------------------------------------------------------------------------------
Net Increase 2,510,164 $ 57,856,403 674,459 $ 14,981,081
=================================================================================================================================
</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.
--------------------------------------------------------------------------------
90 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
----------------------------------------------------------------------------------
Government Fund 2000(1)(2) 1999(2) 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.74 $10.66 $10.58 $10.40 $10.67 $ 9.99
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.30 0.54 0.65 0.69 0.70 0.70
Net realized and unrealized gain (loss) (0.21) (0.87) 0.10 0.17 (0.25) 0.68
------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.09 (0.33) 0.75 0.86 0.45 1.38
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.27) (0.54) (0.67) (0.68) (0.72) (0.70)
Capital -- (0.05) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.27) (0.59) (0.67) (0.68) (0.72) (0.70)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.56 $ 9.74 $10.66 $10.58 $10.40 $10.67
------------------------------------------------------------------------------------------------------------------------------------
Total Return 0.96%++ (3.16)% 7.29% 8.56% 4.58% 14.27%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $134 $160 $209 $241 $287 $329
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.77%+ 0.89% 0.88% 0.90% 0.84% 0.83%
Interest expense -- 0.01 -- -- -- --
Net investment income 6.37+ 5.28 6.11 6.69 6.79 6.84
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 108% 201% 141% 104% 276% 214%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment income has been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
The Concert Investment Series 91
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
---------------------------------------------------------------------
Government Fund 2000(1)(2) 1999(2) 1998 1997 1996(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.73 $10.66 $10.58 $10.41 $10.32
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.28 0.50 0.62 0.66 0.15
Net realized and unrealized gain (loss) (0.21) (0.87) 0.10 0.17 0.09
------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.07 (0.37) 0.72 0.83 0.24
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.26) (0.51) (0.64) (0.66) (0.15)
Capital -- (0.05) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.26) (0.56) (0.64) (0.66) (0.15)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.54 $ 9.73 $10.66 $10.58 $10.41
------------------------------------------------------------------------------------------------------------------------------------
Total Return 0.72%++ (3.51)% 7.00% 8.35% 2.36%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 20 $ 23 $ 17 $ 14 $ 11
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.28%+ 1.25% 1.12% 1.15% 1.09%+
Interest expense -- 0.01 -- -- --
Net investment income 5.86+ 4.96 5.78 6.44 6.50+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 108% 201% 141% 104% 276%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
---------------------------------------------------------------------
Government Fund 2000(1)(2) 1999(2) 1998 1997 1996(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.74 $10.66 $10.58 $10.41 $10.32
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.25 0.43 0.54 0.59 0.14
Net realized and unrealized gain (loss) (0.21) (0.87) 0.10 0.17 0.09
------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.04 (0.44) 0.64 0.76 0.23
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.22) (0.43) (0.56) (0.59) (0.14)
Capital -- (0.05) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.22) (0.48) (0.56) (0.59) (0.14)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.56 $ 9.74 $10.66 $10.58 $10.41
------------------------------------------------------------------------------------------------------------------------------------
Total Return 0.40%++ (4.17)% 6.20% 7.55% 2.18%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $15 $17 $14 $12 $14
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.92%+ 1.94% 1.87% 1.90% 1.84%+
Interest expense -- 0.01 -- -- --
Net investment income 5.21+ 4.27 5.04 5.69 5.74+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 108% 201% 141% 104% 276%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment income has been calculated using the monthly average shares
method.
(3) For the period from August 8, 1996 (inception date) to October 31, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
92 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
---------------------------------------------------------------------------------
Growth Fund 2000(1)(2) 1999(2) 1998 1997 1996 1995
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $24.36 $19.59 $20.94 $17.98 $17.46 $15.31
------------------------------------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.02 0.08 0.13 0.17 0.19 0.16
Net realized and unrealized gain 4.07 6.62 2.10 4.33 2.91 3.18
------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 4.09 6.70 2.23 4.50 3.10 3.34
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.07) (0.11) (0.17) (0.18) (0.18) (0.16)
Net realized gains (1.58) (1.82) (3.41) (1.36) (2.40) (1.03)
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.65) (1.93) (3.58) (1.54) (2.58) (1.19)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $26.80 $24.36 $19.59 $20.94 $17.98 $17.46
------------------------------------------------------------------------------------------------------------------------------------
Total Return 17.35%++ 35.60% 12.54% 26.93% 19.94% 24.01%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $4,962 $4,475 $3,657 $3,547 $3,005 $2,612
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.71%+ 0.76% 0.78% 0.88% 0.93% 1.00%
Net investment income 0.18+ 0.34 0.63 0.86 1.08 1.04
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 20% 37% 113% 165% 202% 230%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment income has been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
The Concert Investment Series 93
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
----------------------------------------------------------------------
Growth Fund 2000(1)(2) 1999(2) 1998 1997 1996(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $24.29 $19.54 $20.89 $17.96 $16.63
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) (0.04) 0.02 0.05 0.15 0.02
Net realized and unrealized gain 4.07 6.60 2.13 4.30 1.31
------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 4.03 6.62 2.18 4.45 1.33
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.01) (0.05) (0.12) (0.16) --
Net realized gains (1.58) (1.82) (3.41) (1.36) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.59) (1.87) (3.53) (1.52) --
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $26.73 $24.29 $19.54 $20.89 $17.96
------------------------------------------------------------------------------------------------------------------------------------
Total Return 17.09%++ 35.24% 12.27% 26.65% 8.00%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $462 $344 $180 $109 $49
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.18%+ 1.01% 1.02% 1.13% 1.17%+
Net investment income (loss) (0.30)+ 0.09 0.38 0.57 0.46+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 20% 37% 113% 165% 202%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
----------------------------------------------------------------------
Growth Fund 2000(1)(2) 1999(2) 1998 1997 1996(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $23.95 $19.37 $20.75 $17.93 $16.63
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) (0.12) (0.14) (0.11) 0.01 (0.01)
Net realized and unrealized gain 3.99 6.54 2.14 4.28 1.31
------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 3.87 6.40 2.03 4.29 1.30
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- (0.11) --
Net realized gains (1.58) (1.82) (3.41) (1.36) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.58) (1.82) (3.41) (1.47) --
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $26.24 $23.95 $19.37 $20.75 $17.93
------------------------------------------------------------------------------------------------------------------------------------
Total Return 16.67%++ 34.31% 11.43% 25.66% 7.82%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $486 $357 $182 $126 $74
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.86%+ 1.76% 1.75% 1.88% 1.93%+
Net investment loss (0.98)+ (0.65) (0.35) (0.16) (0.29)+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 20% 37% 113% 165% 202%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment income (loss) has been calculated using the monthly average
shares method.
(3) 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.
--------------------------------------------------------------------------------
94 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
---------------------------------------------------------------------------------
Growth and Income Fund 2000(1)(2) 1999(2) 1998 1997 1996 1995
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $21.36 $18.53 $20.10 $18.11 $16.95 $15.77
------------------------------------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.05 0.09 0.18 0.24 0.31 0.36
Net realized and unrealized gain 1.21 3.60 1.70 4.23 2.94 2.72
------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 1.26 3.69 1.88 4.47 3.25 3.08
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.04) (0.08) (0.20) (0.30) (0.34) (0.30)
Net realized gains (3.45) (0.78) (3.25) (2.18) (1.75) (1.60)
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (3.49) (0.86) (3.45) (2.48) (2.09) (1.90)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $19.13 $21.36 $18.53 $20.10 $18.11 $16.95
------------------------------------------------------------------------------------------------------------------------------------
Total Return 5.75%++ 20.27% 10.90% 27.35% 20.58% 22.45%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $1,095 $1,122 $1,079 $1,097 $943 $828
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.84%+ 0.84% 0.83% 0.88% 0.91% 0.96%
Net investment income 0.49+ 0.43 0.90 1.25 1.78 2.27
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 8% 53% 34% 93% 121% 117%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment income has been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
The Concert Investment Series 95
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
----------------------------------------------------------------------
Growth and Income Fund 2000(1)(2) 1999(2) 1998 1997 1996(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $21.35 $18.53 $20.10 $18.11 $17.19
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) 0.02 0.03 (0.02) 0.20 0.07
Net realized and unrealized gain 1.21 3.60 1.85 4.22 0.91
------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 1.23 3.63 1.83 4.42 0.98
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.01) (0.03) (0.15) (0.25) (0.06)
Net realized gains (3.45) (0.78) (3.25) (2.18) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (3.46) (0.81) (3.40) (2.43) (0.06)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $19.12 $21.35 $18.53 $20.10 $18.11
------------------------------------------------------------------------------------------------------------------------------------
Total Return 5.60%++ 19.93% 10.63% 27.04% 5.72%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $207 $181 $124 $80 $33
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.13%+ 1.12% 1.07% 1.12% 1.16%+
Net investment income 0.20+ 0.15 0.63 0.96 1.78+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 8% 53% 34% 93% 121%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
--------------------------------------------------------------------
Growth and Income Fund 2000(1)(2) 1999(2) 1998 1997 1996(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $21.16 $18.48 $20.07 $18.09 $17.19
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) (0.05) (0.12) (0.01) 0.06 0.04
Net realized and unrealized gain 1.19 3.58 1.71 4.22 0.90
------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 1.14 3.46 1.70 4.28 0.94
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- (0.04) (0.12) (0.04)
Net realized gains (3.45) (0.78) (3.25) (2.18) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (3.45) (0.78) (3.29) (2.30) (0.04)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $18.85 $21.16 $18.48 $20.07 $18.09
------------------------------------------------------------------------------------------------------------------------------------
Total Return 5.19%++ 19.03% 9.85% 26.08% 5.49%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $232 $208 $137 $99 $52
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.86%+ 1.87% 1.81% 1.88% 1.91%+
Net investment income (loss) (0.53)+ (0.60) (0.09) 0.22 1.05+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 8% 53% 34% 93% 121%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment income (loss) has been calculated using the monthly average
shares method.
(3) 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 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
----------------------------------------------------------------------
International Equity Fund 2000(1)(2) 1999(2) 1998 1997 1996(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $32.57 $19.06 $18.16 $16.52 $16.00
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.19) (0.28) (0.21) (0.17) (0.03)
Net realized and unrealized gain 15.84 13.79 1.11 1.81 0.55
------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 15.65 13.51 0.90 1.64 0.52
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- --
Net realized gains (0.74) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.74) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $47.48 $32.57 $19.06 $18.16 $16.52
------------------------------------------------------------------------------------------------------------------------------------
Total Return 48.09%++ 70.88% 4.96% 9.99% 3.25%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $9 $4 $2 $2 $0.2
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(4) 1.32%+ 1.68% 1.79% 2.26% 2.50%+
Net investment loss(4) (0.81)+ (1.12) (0.99) (1.24) (1.31)+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 15% 50% 63% 57% 78%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment loss has been calculated using the monthly average shares
method.
(3) For the period from August 8, 1996 (inception date) to October 31, 1996.
(4) If the 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 97
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
----------------------------------------------------------------------------------------
International Equity Fund 2000(1)(2) 1999(2) 1998 1997 1996 1995(2)(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $32.24 $18.94 $18.14 $16.54 $13.86 $11.81
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.28) (0.37) (0.27) (0.26) (0.19) (0.14)
Net realized and unrealized gain 15.70 13.67 1.07 1.86 2.87 2.19
------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 15.42 13.30 0.80 1.60 2.68 2.05
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- -- --
Net realized gains (0.74) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.74) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $46.92 $32.24 $18.94 $18.14 $16.54 $13.86
------------------------------------------------------------------------------------------------------------------------------------
Total Return 47.86%++ 70.22% 4.41% 9.74% 19.34% 16.28%(4)++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $84 $38 $20 $17 $10 $7
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(5) 1.62%+ 2.08% 2.25% 2.56% 2.75% 3.64%+
Net investment loss(5) (1.14)+ (1.53) (1.46) (1.59) (1.56) (1.40)+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 15% 50% 63% 57% 78% 17%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment loss has been calculated using the monthly average shares
method.
(3) For the period from February 21, 1995 (inception date) to October 31, 1995.
(4) For the purpose of calculating performance, the Fund's inception date is
March 17, 1995 (date the Fund's investment strategy was implemented).
(5) If expenses had not been waived or reimbursed, for the period ended October
31, 1995 and the year ended October 31, 1996 the total return would have
been lower and the expense and net investment loss ratios would have been:
Net Investment
Expense Ratio Loss Ratio
------------- ---------------
1996 4.12% (2.92)%
1995 5.97+ (3.73)+
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
98 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class B Shares
----------------------------------------------------------------------------------------
International Equity Fund 2000(1)(2) 1999(2) 1998 1997 1996 1995(2)(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $31.16 $18.44 $17.81 $16.36 $13.79 $11.81
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.43) (0.53) (0.39) (0.32) (0.26) (0.21)
Net realized and unrealized gain 15.16 13.25 1.02 1.77 2.83 2.19
------------------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 14.73 12.72 0.63 1.45 2.57 1.98
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- -- --
Net realized gains (0.74) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.74) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $45.15 $31.16 $18.44 $17.81 $16.36 $13.79
------------------------------------------------------------------------------------------------------------------------------------
Total Return 47.30%++ 68.98% 3.54% 8.93% 18.64% 15.69%(4)++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $113 $41 $18 $13 $8 $2
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(5) 2.34%+ 2.79% 3.11% 3.30% 3.50% 4.33%+
Net investment loss(5) (1.83)+ (2.26) (2.32) (2.34) (2.31) (2.80)+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 15% 50% 63% 57% 78% 17%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment loss has been calculated using the monthly average shares
method.
(3) For the period from February 21, 1995 (inception date) to October 31, 1995.
(4) For the purpose of calculating performance, the Fund's inception date is
March 17, 1995 (date the Fund's investment strategy was implemented).
(5) If expenses had not been waived or reimbursed, for the period ended October
31, 1995 and the year ended October 31, 1996, the total return would have
been lower and the expense and net investment loss ratios would have been:
Net Investment
Expense Ratio Loss Ratio
------------- ---------------
1996 4.87% (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 99
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31, except where noted:
Class 1 Shares
--------------------------
Mid Cap Fund 2000(1)(2) 1999(2)(3)
================================================================================
Net Asset Value, Beginning of Period $12.03 $11.44
--------------------------------------------------------------------------------
Income From Operations:
Net investment income(4) 0.02 0.02
Net realized and unrealized gain 3.58 0.57
--------------------------------------------------------------------------------
Total Income From Operations 3.60 0.59
--------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- --
--------------------------------------------------------------------------------
Total Distributions -- --
--------------------------------------------------------------------------------
Net Asset Value, End of Period $15.63 $12.03
--------------------------------------------------------------------------------
Total Return++ 29.93% 5.16%
--------------------------------------------------------------------------------
Net Assets, End of Period (000s) $2,139 $741
--------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(4)(5) 1.25% 1.24%
Net investment income 0.22 0.32
--------------------------------------------------------------------------------
Portfolio Turnover Rate 46% 47%
================================================================================
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment income has been calculated using the monthly average shares
method.
(3) For the period from March 16, 1999 (inception date) to October 31, 1999.
(4) The Adviser has reimbursed the Fund for a portion of its expenses for the
six months ended April 30, 2000 and the period ended October 31, 1999. If
such expenses were not reimbursed, the per share effect on net investment
income and the expense ratios would have been as follows:
Expense Ratios
Net Investment Income Without
Per Share Decrease Reimbursement+
--------------------- --------------
2000 $0.03 1.71%
1999 0.05 1.88
(5) As a result of voluntary expense limitations, the expense ratio will not
exceed 1.25%.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
100 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31, except where noted:
Class A Shares
---------------------------
Mid Cap Fund 2000(1)(2) 1999(2)(3)
================================================================================
Net Asset Value, Beginning of Period $12.01 $11.40
--------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss)(4) (0.00)* 0.01
Net realized and unrealized gain 3.58 0.60
--------------------------------------------------------------------------------
Total Income From Operations 3.58 0.61
--------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- --
--------------------------------------------------------------------------------
Total Distributions -- --
--------------------------------------------------------------------------------
Net Asset Value, End of Period $15.59 $12.01
--------------------------------------------------------------------------------
Total Return++ 29.81% 5.35%
--------------------------------------------------------------------------------
Net Assets, End of Period (000s) $22,782 $10,194
--------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(4)(5) 1.50% 1.48%
Net investment income (loss) (0.05) 0.08
--------------------------------------------------------------------------------
Portfolio Turnover Rate 46% 47%
================================================================================
(1) For the six months ended April 30, 2000 (unaudited).
(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 reimbursed the Fund for a portion of its expenses for the
six months ended April 30, 2000 and the period ended October 31, 1999. If
such expenses were not reimbursed, 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
Per Share Decrease Reimbursement+
---------------------------- --------------
2000 $0.03 1.95%
1999 0.04 2.12
(5) As a result of voluntary expense limitations, the expense ratio will not
exceed 1.50%.
* Amount represents less than $0.01.
++ 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, except where noted:
Class B Shares
---------------------------
Mid Cap Fund 2000(1)(2) 1999(2)(3)
================================================================================
Net Asset Value, Beginning of Period $11.97 $11.44
--------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss(4) (0.06) (0.05)
Net realized and unrealized gain 3.56 0.58
--------------------------------------------------------------------------------
Total Income From Operations 3.50 0.53
--------------------------------------------------------------------------------
Less Distributions From:
--------------------------------------------------------------------------------
Net investment income -- --
--------------------------------------------------------------------------------
Total Distributions -- --
--------------------------------------------------------------------------------
Net Asset Value, End of Period $15.47 $11.97
--------------------------------------------------------------------------------
Total Return++ 29.24% 4.63%
--------------------------------------------------------------------------------
Net Assets, End of Period (000s) $38,666 $16,955
--------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(4)(5) 2.25% 2.24%
Net investment loss (0.80) (0.68)
--------------------------------------------------------------------------------
Portfolio Turnover Rate 46% 47%
================================================================================
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment loss has been calculated using the monthly average shares
method.
(3) For the period from March 16, 1999 (inception date) to October 31, 1999.
(4) The Adviser has reimbursed the Fund for a portion of its expenses for the
six months ended April 30, 2000 and the period ended October 31, 1999. If
such expenses were not reimbursed, the per share effect on net investment
loss and the expense ratios would have been as follows:
Expense Ratios
Net Investment Loss Without
Per Share Decrease Reimbursement+
------------------- ---------------
2000 $0.03 2.69%
1999 0.04 2.88
(5) As a result of voluntary expense limitations, the expense ratio will not
exceed 2.25%.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
102 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
----------------------------------------------------------------------------------
Municipal Bond Fund 2000(1)(2) 1999(2) 1998 1997 1996 1995
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.90 $14.41 $14.21 $13.83 $13.77 $12.89
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.33 0.66 0.68 0.69 0.70 0.74
Net realized and unrealized gain (loss) (0.01) (1.25) 0.31 0.39 0.11 0.87
------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.32 (0.59) 0.99 1.08 0.81 1.61
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.35) (0.69) (0.66) (0.66) (0.71) (0.73)
Net realized gains -- (0.23) (0.13) (0.04) (0.04) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.35) (0.92) (0.79) (0.70) (0.75) (0.73)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.87 $12.90 $14.41 $14.21 $13.83 $13.77
------------------------------------------------------------------------------------------------------------------------------------
Total Return 2.49%++ (4.34)% 7.20% 8.04% 6.09% 12.72%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $67 $75 $94 $104 $119 $119
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.96%+ 0.95% 1.01% 0.98% 1.05% 0.96%
Net investment income 5.08+ 4.77 4.77 4.93 5.13 5.58
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 9% 38% 28% 50% 80% 49%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment income has been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
The Concert Investment Series 103
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
----------------------------------------------------------------------
Municipal Bond Fund 2000(1)(2) 1999(2) 1998 1997 1996(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.90 $14.41 $14.21 $13.83 $13.78
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.31 0.63 0.62 0.65 0.11
Net realized and unrealized gain (loss) (0.01) (1.26) 0.34 0.40 0.04
------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.30 (0.63) 0.96 1.05 0.15
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.33) (0.65) (0.63) (0.63) (0.10)
Net realized gains -- (0.23) (0.13) (0.04) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.33) (0.88) (0.76) (0.67) (0.10)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.87 $12.90 $14.41 $14.21 $13.83
------------------------------------------------------------------------------------------------------------------------------------
Total Return 2.35%++ (4.58)% 6.93% 7.77% 1.12%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $31 $34 $16 $9 $2
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.25%+ 1.18% 1.23% 1.19% 1.30%+
Net investment income 4.79+ 4.54 4.44 4.79 4.82+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 9% 38% 28% 50% 80%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
--------------------------------------------------------------------
Municipal Bond Fund 2000(1)(2) 1999(2) 1998 1997 1996(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.88 $14.39 $14.20 $13.82 $13.78
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.26 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 0.26 (0.73) 0.84 0.94 0.13
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.28) (0.55) (0.52) (0.52) (0.09)
Net realized gains -- (0.23) (0.13) (0.04) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.28) (0.78) (0.65) (0.56) (0.09)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.86 $12.88 $14.39 $14.20 $13.82
------------------------------------------------------------------------------------------------------------------------------------
Total Return 2.03%++ (5.30)% 6.10% 6.98% 0.93%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $7 $8 $6 $3 $1
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.96%+ 1.93% 1.95% 1.94% 2.05%+
Net investment income 4.08+ 3.79 3.67 4.04 4.06+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 9% 38% 28% 50% 80%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment income has been calculated using the monthly average shares
method.
(3) 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 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class 1 Shares
----------------------------------------------------------------------
Small Cap Fund 2000(1)(2) 1999(2) 1998 1997 1996(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $25.33 $20.28 $22.15 $18.59 $17.89
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.02) (0.13) (0.12) (0.08) (0.02)
Net realized and unrealized gain (loss) 4.84 6.71 (1.54) 3.64 0.72
------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 4.82 6.58 (1.66) 3.56 0.70
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- --
Net realized gains (6.66) (1.53) (0.21) -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (6.66) (1.53) (0.21) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $23.49 $25.33 $20.28 $22.15 $18.59
------------------------------------------------------------------------------------------------------------------------------------
Total Return 18.60%++ 33.42% (7.52)% 19.15% 3.91%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $13 $9 $7 $6 $1
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.99%+ 1.25% 1.26% 1.39% 1.74%+
Net investment loss (0.18)+ (0.58) (0.60) (0.63) (1.09)+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 50% 115% 80% 100% 80%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment loss has been calculated using the monthly average shares
method.
(3) For the period from August 8, 1996 (inception date) to October 31, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
The Concert Investment Series 105
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout each
year ended October 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
-----------------------------------------------------------------------------------
Small Cap Fund 2000(1)(2) 1999(2) 1998 1997 1996 1995(2)(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $25.08 $20.15 $22.08 $18.57 $15.12 $11.81
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.08) (0.20) (0.17) (0.15) (0.18) (0.24)
Net realized and unrealized gain (loss) 4.80 6.66 (1.55) 3.66 3.63 3.55
------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 4.72 6.46 (1.72) 3.51 3.45 3.31
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- -- --
Net realized gains (6.66) (1.53) (0.21) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (6.66) (1.53) (0.21) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $23.14 $25.08 $20.15 $22.08 $18.57 $15.12
------------------------------------------------------------------------------------------------------------------------------------
Total Return 18.35%++ 33.02% (7.81)% 18.90% 22.82% 28.11%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $177 $138 $108 $101 $52 $16
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(4) 1.45%+ 1.55% 1.43% 1.69% 2.21% 2.75%+
Net investment loss(4) (0.64)+ (0.88) (0.80) (0.92) (1.52) (1.65)+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 50% 115% 80% 100% 80% 83%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
------------------------------------------------------------------------------------
Small Cap Fund 2000(1)(2) 1999(2) 1998 1997 1996 1995(2)(3)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $24.16 $19.60 $21.63 $18.34 $15.04 $11.81
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.17) (0.37) (0.30) (0.27) (0.27) (0.35)
Net realized and unrealized gain (loss) 4.63 6.46 (1.52) 3.56 3.57 3.58
------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 4.46 6.09 (1.82) 3.29 3.30 3.23
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- -- -- -- --
Net realized gains (6.66) (1.53) (0.21) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (6.66) (1.53) (0.21) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $21.96 $24.16 $19.60 $21.63 $18.34 $15.04
------------------------------------------------------------------------------------------------------------------------------------
Total Return 17.91%++ 32.00% (8.45)% 17.94% 21.94% 27.43%++
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $172 $129 $91 $80 $39 $11
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(5) 2.18%+ 2.31% 2.18% 2.44% 2.96% 3.49%+
Net investment loss(5) (1.37)+ (1.63) (1.55) (1.67) (2.27) (2.45)+
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 50% 115% 80% 100% 80% 83%
====================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Net investment loss has been calculated using the monthly average shares
method.
(3) For the period from February 21, 1995 (inception date) to October 31, 1995.
(4) If the Adviser had not waived fees for the period ended October 31, 1995,
the total return would have been lower and the annualized expense and net
investment loss ratios would have been 3.37% and (2.27)%, respectively.
(5) If the Adviser had not waived fees for the period ended October 31, 1995,
the total return would have been lower and the annualized expense 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.
--------------------------------------------------------------------------------
106 2000 Semi-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, CFA
Vice President and Investment Officer
James B. Conheady
Vice President and Investment Officer
James E. Conroy
Vice President and Investment Officer
Joseph P. Deane
Vice President and Investment Officer
R. Jay Gerken, CFA
Vice President and Investment Officer
Jeffrey J. Russell, CFA
Vice President and Investment Officer
Lawrence B. Weissman, CFA
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
PFPC Trust Company
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 Series,
which contains information concerning the Funds' 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
---------------
(C) 1999 PFS INVESTMENTS INC.
If you have any questions, please contact
one of our Client Services Representatives
1-800-544-5445
[LOGO OF PFS INVESTMENTS]
<PAGE>
THE CONCERT
INVESTMENT SERIES
------------------
SEMI-ANNUAL REPORT
April 30, 2000
Select Portfolios
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
Your Serious Money. Professionally Managed.(SM)
-----------------------------------------------------------
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
-----------------------------------------------------------
<PAGE>
Table of Contents
Letter to Shareholders .................................................... 1
The Concert Investment Series Select Portfolios
Select Small Cap Portfolio ........................................... 3
Select Mid Cap Portfolio ............................................. 6
Select Growth Portfolio .............................................. 10
Select Growth and Income Portfolio ................................... 14
Select Government Portfolio .......................................... 18
Schedules of Investments .................................................. 21
Statements of Assets and Liabilities ...................................... 39
Statements of Operations .................................................. 40
Statements of Changes in Net Assets ....................................... 41
Notes to Financial Statements ............................................. 43
Financial Highlights ...................................................... 48
Management of the Series .................................................. 53
<PAGE>
[PHOTO]
HEATH B. MCLENDON
Chairman
Concert Investment
Series
Dear Shareholder:
We are pleased to provide the semi-annual report for The Concert Investment
Series Select Portfolios ("Portfolios") for the period ended April 30, 2000. The
performance and current holdings of each Portfolio are discussed in greater
detail on the following pages. The chart below lists the total return for the
six months ended April 30, 2000, for each of the Portfolios. In this report, we
summarize the period's prevailing economic and market conditions and outline the
investment strategy employed by each Portfolio.1 We hope you find this report to
be useful and informative.
The Performance of the Concert
Investment Series Select Portfolios2
Total Returns For the Six Months Ended April 30, 2000
Portfolio Total Returns
--------- -------------
Select Small Cap Portfolio 20.85%
Select Mid Cap Portfolio 30.26%
Select Growth Portfolio 17.80%
Select Growth & Income Portfolio 5.87%
Select Government Portfolio 0.53%
Market Commentary
During the six months ended April 30, 2000, the U.S. stock and bond markets
experienced historic levels of volatility, leaving many investors with little or
no clear indication of the future direction of the financial markets. Yet,
despite the ongoing strength and expansion of both the U.S. and global
economies, investor concerns regarding inflation and rising interest rates led
to wide fluctuations in stock prices.
The volatility of the financial markets and speculative trading frenzy that
contributed to wide fluctuations in stock prices, also caused many stocks to
reach historically high valuations. Yet, we believe an important convergence may
be at hand. New Economy stocks are becoming more traditional in their business
models, while Old Economy stocks are beginning to incorporate exciting new
technologies into their operations. (The New Economy represents those companies
in the technology, telecommunications and Internet sectors. The Old Economy
represents more established "blue-chip" companies.) Also, while some New Economy
stocks may represent solid investment opportunities, we believe that many Old
Economy stocks have become undervalued relative to their intrinsic value,
opening up more possibilities for long-term rewards.
Additionally, world markets are increasingly moving in tandem with U.S. markets.
While specific economic factors can have dramatic impact on local markets, we
believe that it's the underlying strength of each individual company that
determines its price.
Since 1998, worldwide economic underpinnings have improved significantly. The
global credit crunch that had taken hold on financial markets has subsided, with
credit concerns limited to specific situations, but positive on an overall
basis. Moreover, despite continued economic growth, inflationary pressures have
been negligible allowing for increasingly competitive real rates of return
(i.e., yield adjusted for inflation).
In addition, we are experiencing a historically unique circumstance where the
U.S. government is buying back U.S. Treasury securities in order to reduce the
federal debt. This active buying of outstanding U.S. Treasury bonds by the U.S.
government has created a situation where Treasury yields are low compared to the
income return available from other debt instruments. These conditions have added
a new complexity to bond investing, which we believe makes professional money
management more valuable today than ever before.
----------
1 The information provided represents the opinion of the managers and is not
intended to be a forecast of future events, a guarantee of future results
nor investment advice. Further, there is no assurance that certain
securities will remain in or out of the various Portfolios.
2 Please note that the performance figures shown in the left column represent
past performance that is not indicative of future results. The investment
return and the principal 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>
Expanding yields have resulted in continued strength in the U.S. dollar versus
the euro. (The euro is the single currency of the European Monetary Union that
was adopted by 11 member states on January 1, 1999. These are Belgium, Germany,
Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal
and Finland.) The euro has confounded most economists with its continued
weakness. We contend that its valuation is, in effect, making European stocks
more attractive.
Looking forward, we believe that European economic growth should continue for
the near future. Due to the many changes currently taking place in European
corporations, we maintain a positive outlook on the stocks of select European
companies. The management of many corporations in the region have demonstrated,
in our view, a commitment to implementing strategies that look to proactively
expand their respective businesses, recognizing the importance of enhancing
shareholder value and the increasing relevance of compensation through stock
options.
Thank you for investing in The Concert Investment Series
Select Portfolios.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
Concert Investment Series
May 28, 2000
--------------------------------------------------------------------------------
2 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Select Small Cap Portfolio
--------------------------------------------------------------------------------
The Select Small Cap Portfolio ("Portfolio") seeks capital appreciation. The
Portfolio invests primarily in domestic companies, in early stages of their life
cycles, characterized by relatively high earnings growth.1
Portfolio Manager:
Sandip A. Bhagat, CFA
[PHOTO]
Assumed management: September 15, 1999
Investment experience: More than thirteen 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 Update2
For the six months ended April 30, 2000, the Portfolio returned 20.85%. In
comparison, the Russell 2000 Index3 returned 18.72% for the same period. On
December 13, 1999, the Board of Trustees of the Concert Investment Series
approved changing the name of the Portfolio from Select Emerging Growth to the
Select Small Cap.
During the reporting period, the stock market experienced exceptional
volatility, especially in smaller cap stocks. The Russell 2000 Index reached an
all-time high in February 2000, and declined by nearly 25% by the end of the
period. The performance of the overall market was predominantly driven by a
limited number of stocks. The shares of the companies in business-to-consumer,
business-to-business, and human genome were most volatile during the period.
The Portfolio's holdings in Cognizant Technology Solutions, a software company,
Network Appliance, a computer networks company and Amkor Technology, a
semiconductors company, positively contributed to performance during the
reporting period. Each of these companies exhibited strong earnings growth,
above average earnings momentum, and was, in our view, fairly valued relative to
the overall market. The stocks that negatively impacted the Portfolio's
competitive performance during the period were MicroStrategy and Optical Coating
Lab, which was subsequently acquired.
However, we have already seen some signs that market performance is beginning to
expand to more areas. Due to ongoing concerns regarding interest rates, we
anticipate that the market may continue to be marked by increased levels of
volatility. Additionally, it is our view that the performance of the NASDAQ
Composite Index4 may broaden in the near term.
----------
1 Because the Portfolio invests primarily in small-capitalization companies,
an investment in the Portfolio may be considered more volatile and more
susceptible to loss than an investment in a portfolio that invests
primarily in larger capitalization companies. Compared to medium and large,
established companies, small companies are more likely to have limited
product lines, limited capital resources and less experienced management.
The price of small capitalization company stocks tend to be more volatile
than the price of larger capitalization company stocks.
2 References to the securities or percentages thereof held by the Portfolio,
reflect the holdings of the Portfolio as of April 30, 2000. After such date
this information may not reflect the Portfolio's current holdings. Thus,
such information should not be relied upon for current prices of shares or
for trading securities. Further, there is no assurance that the composition
of the Portfolio's holdings will not materially change. Please refer to
pages 21 through 26 for a complete list and the percentage breakdown of the
Portfolio's holdings as of April 30, 2000.
3 The Russell 2000 Index measures the performance of the 2,000 smallest
companies in the Russell 3000 Index, which represents approximately 8% of
the total market capitalization of the Russell 3000 Index. An investor
cannot invest directly in an index.
4 The NASDAQ Composite Index is a market value-weighted index that measures
all domestic and non-U.S. based securities listed on the NASDAQ stock
market. An investor cannot invest directly in an index.
--------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 3
<PAGE>
--------------------------------------------------------------------------------
Select Small Cap Portfolio
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
---------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+++
================================================================================
4/30/00 $ 9.92 $11.94 $0.05 $0.00 20.85%
--------------------------------------------------------------------------------
9/15/99* -- 10/31/99 10.00 9.92 0.00 0.00 (0.80)
================================================================================
Total $0.05 $0.00
================================================================================
It is the Portfolio's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)+++
--------------------------------------------------------------------------------
Six Months Ended 4/30/00 20.85%
--------------------------------------------------------------------------------
9/15/99* through 4/30/00 19.89
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Return (unaudited)+
--------------------------------------------------------------------------------
9/15/99* through 4/30/00 19.89%
================================================================================
+ 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 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Select Small Cap Portfolio at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in the Select Small Cap Portfolio
vs. Russell 2000 Stock Index+
--------------------------------------------------------------------------------
September 1999 -- April 2000
[GRAPH]
Select Small Cap Russell 2000 Stock Index
15-Sep-99 10,000 10,000
Sep-99 9,760 10,002
Oct-99 9,920 10,042
Nov-99 10,890 10,642
Dec-99 12,440 11,846
Jan-00 11,959 11,655
Feb-00 14,298 13,580
Mar-00 13,123 12,685
30-Apr-00 11,989 11,921
+ Hypothetical illustration of $10,000 invested on September 15, 1999
(commencement of operations), assuming reinvestment of dividends and
capital gains, if any, at net asset value through April 30, 2000. 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.
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*
-----------------------------------------
[GRAPH]
Computer Software 5.5%
Consumer Discretionary 13.3%
Electronic -- Components 13.5%
Finance 8.0%
Health Care 14.3%
Materials and Processing 5.6%
Producer Durables 2.8%
Technology 23.5%
Telecommunications and Equipment 3.9%
Other 9.6%
* As a percentage of total common stock.
Investment Allocation as of April 30, 2000**
--------------------------------------------
[GRAPH]
Common Stock 100%
** As a percentage of total investments.
--------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 5
<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 MidCap 400 Index ("S&P MidCap 400")1
at the time of investment.2
Portfolio Manager: Lawrence B. Weissman, CFA
[PHOTO]
Assumed management: September 15, 1999
Investment experience: More than 15 years
Background: Joined Salomon Smith Barney in 1997. Previously with Neuberger &
Berman and TIAA-CREF.
Education: BS, Cornell University; MBA, Columbia University
Portfolio Update3
For the six months ended April 30, 2000, the Portfolio returned 30.26%. In
comparison, the S&P MidCap 400 returned 21.26% for the same period. 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
valuation differences between large- and middle-capitalization companies without
taking on a lot of undue risk.
In seeking to accomplish this goal, we follow an investment approach that
focuses on companies that we perceive to have 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 leverage
their leadership position. We also look for consistent growth, products with
leadership positions, shareholder-oriented management, positive cash flow and
high return on equity as factors in determining whether to invest in a
prospective company.
The Portfolio seeks long-term growth of capital by investing primarily in equity
securities of medium-sized companies. Medium-sized companies are those companies
whose market capitalization is within the market capitalization range of
companies in the S&P MidCap 400 at the time of the Portfolio's investment. The
size of the companies in the S&P MidCap 400 changes with market conditions and
the composition of the index.
Equity securities include exchange traded and over-the- counter common stocks,
preferred stocks, debt securities convertible into equity securities and
warrants and rights relating to equity securities. The Portfolio may also invest
up to 25% of its assets in securities of foreign issuers both directly and
through depository receipts for those securities.
Since the Portfolio's commencement of operations, we have remained committed to
our investment style. We continue to focus on maintaining a quality-oriented
portfolio that we believe will provide higher returns with potentially lower
risk over time. We think our positive performance during the period was due both
to our solid stock selections and our disciplined and conservative investment
style. (Of course, past performance is not indicative of future results.)
From 1995 through the beginning of 1999 large- capitalization companies
significantly outperformed small and mid-capitalization companies. However,
beginning
----------
1 The S&P MidCap 400 is a market-value weighted index, consisting of 400
domestic stocks chosen for market size, liquidating and industry group
representation. This index is unmanaged and is not subject to the same
management and trading expenses of a mutual fund.
2 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 portfolio 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.
3 References to the securities or percentages thereof held by the Portfolio,
reflect the holdings of the Portfolio as of April 30, 2000. After such date
this information may not reflect the Portfolio's current holdings. Thus,
such information should not be relied upon for current prices of shares or
for trading securities. Further, there is no assurance that the composition
of the Portfolio's holdings will not materially change. Please refer to
pages 27 through 30 for a complete list and the percentage breakdown of the
Portfolio's holdings as of April 30, 2000.
--------------------------------------------------------------------------------
6 2000 Semi-Annual Report to Shareholders
<PAGE>
early in 1999 this began to change as earnings for mid-cap companies relative to
large-cap companies reversed and started to accelerate. Historically, these
factors have led to outperformance of mid-cap stocks. Indeed, since the
inception of the Portfolio, mid-cap stocks have outperformed large-cap stocks as
many highly visible large capitalization companies reported disappointing
earnings and had the price of their shares decline. Consensus earnings estimates
from Wall Street suggest to us that mid-cap companies may continue to grow
earnings at a faster pace than large-cap companies.
In addition to strong company fundamentals, we think that other potential
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 Portfolio's largest concentrations are in the technology, finance
and consumer sectors. Relative to the S&P MidCap 400, the Portfolio has a
neutral weighting in the technology sector, the largest sector of the index. In
technology, our largest holdings were in semiconductor companies such as Applied
Micro Circuits, Xilinx, and Maxim Integrated Products. These companies remain
focused on communications, which we believe represents the next engine for
growth in the technology market.
Applied Micro Circuits, for example, is currently benefiting from a strong
demand for optical systems and a broadening of its customer base.
The Portfolio is overweighted in the financial sector, and although this sector
is under pressure this year due to rising interest rates, we believe it provides
the best risk and return tradeoff of any sector in the market today. As a
result, we have been increasing the Portfolio's weighting in this category. As
interest rate fears begin to subside, we believe our investment in financial
services companies such as Providian, Ambac Financial and Capital One should
positively contribute to Portfolio performance over the near-term. Of course, no
guarantees can be given that our expectations will be realized.
The Portfolio has neutral weighting in the consumer services sector with the
Portfolio's largest holdings in Imax and Entercom Communications. Imax reported
a strong quarter due in part to the success of "Fantasia," a Disney movie shown
exclusively in Imax theaters. The success of "Fantasia," in our view may
validate the Imax's theaters as another outlet for major movie studios to run
commercial films on Imax screens. Entercom Communications remains one of the
fastest-growing radio companies, having established market-leading stations in
many of the top markets.
--------------------------------------------------------------------------------
The Concert Series--Select Portfolios 7
<PAGE>
--------------------------------------------------------------------------------
Select Mid Cap Portfolio
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
--------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distribution Returns+++
================================================================================
4/30/00 $10.11 $13.15 $0.02 $0.00 30.26%
--------------------------------------------------------------------------------
9/15/99* -- 10/31/99 10.00 10.11 0.00 0.00 1.10
================================================================================
Total $0.02 $0.00
================================================================================
It is the Portfolio's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)+++
--------------------------------------------------------------------------------
Six Months Ended 4/30/00 30.26%
--------------------------------------------------------------------------------
9/15/99* through 4/30/00 31.69
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Return (unaudited)+
--------------------------------------------------------------------------------
9/15/99* through 4/30/00 31.69%
================================================================================
+ 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 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Select Mid Cap Portfolio at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in the Select Mid Cap Portfolio
vs. Standard & Poor's MidCap 400 Index+
--------------------------------------------------------------------------------
September 1999 -- April 2000
[GRAPH]
Mid Cap Portfolio Standard & Poor's Mid Cap 400 Index
15-Sep-99 10,000 10,000
Sep-99 9,570 9,691
Oct-99 10,110 10,185
Nov-99 10,640 10720
Dec-99 11,947 11,357
Jan-00 11,767 11,036
Feb-00 13,109 11,809
Mar-00 13,559 12,797
30-Apr-00 13,169 12,351
+ Hypothetical illustration of $10,000 invested on September 15, 1999
(commencement of operations), assuming the reinvestment of dividends and
capital gains, if any, at net asset value through April 30, 2000. The
Standard & Poor's MidCap 400 Index ("S&P MidCap 400") is a widely
recognized index of 400 medium-capitalization stocks. Figures for the S&P
MidCap 400 include reinvestment of dividends. The index is unmanaged and is
not subject to the same management and trading expenses of a mutual fund.
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*
-----------------------------------------
[GRAPH]
Broadcast Media 5.2%
Communications -- Equipment 4.1%
Computer Software 13.9%
Electronics -- Semiconductors 7.1%
Electronics -- Components 7.8%
Finance 8.1%
Health Care -- Drugs 6.1%
Insurance 6.7%
Oilfield Services 9.3%
Other 31.7%
* As a percentage of total common stock.
Investment Allocation as of April 30, 2000**
--------------------------------------------
[GRAPH]
Repurchase Agreement 7.7%
Common Stock 92.3%
** As a percentage of total investments.
--------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 9
<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]
Assumed management: September 15, 1999
Investment experience: More than 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 Update1
For the six months ended April 30, 2000, the Portfolio returned 17.80%. In
comparison, the Standard & Poor's 500 Index ("S&P 500")2 returned 7.18% for the
same period.
We believe we have built a Portfolio that should offer long-term growth with the
potential to outperform our benchmark, but with what we deem to be potentially
lower risk than many other growth-oriented portfolios. Of course, past
performance is not indicative of future results.
We continue to manage the Portfolio in line with its investment objective. We
continue to pursue a measured and disciplined approach to investing in what we
consider to be quality companies over the long term.
The Portfolio is well diversified across several industry sectors and individual
companies with our largest ten positions making up only 27% of the Portfolio.
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, the Portfolio's holdings include
several medium-sized, faster-growing companies which we think may be in a good
position to post solid growth in the future.
As of April 30, 2000, the Portfolio's largest sector concentrations are in the
technology, finance and consumer industries. In the technology sector, the
Portfolio has a neutral weighting versus the S&P 500 and despite a highly
volatile stock market, this sector helped the Portfolio outperform the overall
market during the period. The main contributors to Portfolio performance were
market leaders such as IBM, Cisco, Oracle, Corning, Intel and Sun Microsystems.
The Portfolio is overweighted in the finance sector versus the S&P 500, and
although this sector has been under pressure this year due to rising interest
rates, we still believe that it provides the best risk and return tradeoff of
any sector in the market today. As interest rate fears begin to subside, we
believe our investment in proven market leaders as Chase Manhattan, Bank of
America, Wells Fargo, XL Capital and AFLAC Inc. may prove fruitful once
investors regain confidence in this sector.
In the consumer services sector, the Portfolio is overweighted versus the S&P
500. The largest holdings in this sector are Time Warner, CBS and MediaOne
Group. All three companies are either in the midst of merging with other
companies or have announced plans to be acquired. Time Warner should be joining
forces with AOL, CBS with Viacom and MediaOne will be acquired by AT&T.
----------
1 References to the securities or percentages thereof held by the Portfolio,
reflect the holdings of the Portfolio as of April 30, 2000. After such date
this information may not reflect the Portfolio's current holdings. Thus,
such information should not be relied upon for current prices of shares or
for trading securities. Further, there is no assurance that the composition
of the Portfolio's holdings will not materially change. Please refer to
pages 31 through 33 for a complete list and the percentage breakdown of the
Portfolio's holdings as of April 30, 2000.
2 The S&P 500 is a market capitalization-weighted measure of 500 widely held
common stocks. An investor cannot directly invest in an index.
--------------------------------------------------------------------------------
10 2000 Semi-Annual Report to Shareholders
<PAGE>
The Time Warner-AOL mega-merger will combine a traditional content company with
a new media company with combined subscribers of more than 100 million. CBS is
benefiting from strong television, radio and outdoor businesses. In our opinion,
the merger of Viacom and CBS is a truly complementary transaction in which both
companies' assets should seamlessly fit together to form a media and advertising
juggernaut. Going forward, the potential for substantial revenue and profit
expansion from a dynamically vertically integrated company may be enormous.
MediaOne continues to benefit from new service subscribers in the cable and
telecommunication businesses. The transaction may make AT&T the largest cable
provider in the country.
The Portfolio's largest holdings are spread over a variety of different
industries. Yet, we believe they all share inherent competitive advantages that
should result in stable and consistent growth. In addition to some of the
companies already mentioned, other holdings in the Portfolio such as General
Electric, Wal-Mart and AES are all leaders in their industries with enviable
track records and have what we believe to be solid future prospects for growth.
(Of course, there is no guarantee our expectations will come true.)
--------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 11
<PAGE>
--------------------------------------------------------------------------------
Select Growth Portfolio
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
--------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+++
================================================================================
4/30/00 $10.51 $12.37 $0.01 $0.00 17.80%
--------------------------------------------------------------------------------
9/15/99* -- 10/31/99 10.00 10.51 0.00 0.00 5.10
================================================================================
Total $0.01 $0.00
================================================================================
It is the Portfolio's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)+ ++
--------------------------------------------------------------------------------
Six Months Ended 4/30/00 17.80%
--------------------------------------------------------------------------------
9/15/99* through 4/30/00 23.80
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Returns (unaudited)+
--------------------------------------------------------------------------------
9/15/99* through 4/30/00 23.80%
================================================================================
+ 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.
--------------------------------------------------------------------------------
12 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Select Growth Portfolio at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in the Select Growth Portfolio
vs. Standard & Poor's 500 Index+
--------------------------------------------------------------------------------
September 1999 -- April 2000
[GRAPH]
Select Growth Portfolio Standard & Poors' 500 Index
----------------------- ---------------------------
15-Sep-99 10,000 10,000
Sep-99 9,740 9,726
Oct-99 10,510 10,342
Nov-99 10,830 10,552
Dec-99 11,870 11,172
Jan-00 11,540 10,611
Feb-00 11,910 10,411
Mar-00 12,831 11,429
30-Apr-00 12,380 11,085
+ Hypothetical illustration of $10,000 invested on September 15, 1999
(commencement of operations), assuming the reinvestment of dividends and
capital gains, if any, at net asset value through April 30, 2000. The
Standard & Poor's 500 Index ("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. The index is unmanaged and is not subject to the same management
and trading expenses of a mutual fund.
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*
-----------------------------------------
[GRAPH]
Consumer Distribution 5.1%
Consumer Services 9.0%
Energy 5.6%
Finance 15.6%
Health Care 11.4%
Producer Manufacturing 8.8%
Software 6.2%
Technology 22.5%
Utilities 7.4%
Other 8.4%
* As a percentage of total common stock.
Investment Allocation as of April 30, 2000**
--------------------------------------------
[GRAPH]
Repurchase Agreement 2.0%
Common Stock 98.0%
** As a percentage of total investments.
--------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 13
<PAGE>
--------------------------------------------------------------------------------
Select Growth and Income Portfolio
--------------------------------------------------------------------------------
The Select Growth and Income Portfolio ("Portfolio") seeks reasonable growth and
income. The Portfolio invests principally in 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]
Assumed management: September 15, 1999
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 Update1
For the six months ended April 30, 2000, the Portfolio returned 5.87%. In
comparison, the Standard & Poor's 500 Index ("S&P 500")2 returned 7.18% for the
same period.
We take a long-term approach in selecting the Portfolio's investments. The
Portfolio is, in our view, 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 valuations represented by
price-to-earnings, price-to-cash flow and price-to-book ratios.3 This two-step
selection process is commonly known as "growth at a reasonable price."
We manage the Portfolio's sector allocations with the objective of maintaining
weightings that closely reflect the overall market. First, in selecting
investments by the Portfolio, we measure each stock versus its weighting in the
overall market that results in what we deem to be a well-diversified portfolio.
We continue to manage the Portfolio as a fully invested portfolio of stocks. As
a result, cash (or short-term investments) comprised only 1.13% of total net
assets as of April 30, 2000. Under most market conditions, we intend to continue
our substantial commitment to stocks.
Over the last six months, we have meaningfully increased our holdings in the
technology sector. The Portfolio's increase in technology holdings corresponds
to a similar increase in the technology weighting of the overall U.S. stock
market as measured by the S&P 500.
During the period, we purchased holdings in hardware companies such as Applied
Materials, Compaq Computer, EMC, Sun Microsystems, Teradyne and Texas
Instruments. We also purchased software companies such as Compuware, Oracle,
Siebel Systems and Yahoo. Additionally, we also added two utility companies,
Enron and Texas Utilities and we added Lehman Brothers Holdings, a global
financial services company to the Portfolio's holdings.
During the period, we eliminated the Portfolio's holdings in Niagara Mohawk and
U.S. West, two utility companies. We also sold the Portfolio's positions in two
financial companies, UnumProvident and Hartford Financial Services, and
eliminated the Portfolio's holdings in Too Inc, a retailer spun out from
Limited.
The worldwide economy has continued to show signs of improvement over the last
six months. The U.S. economy remains strong, with high employment, business
investment and consumer spending. Economic growth continues throughout most of
Europe and Asia and we
------------
1 References to the securities or percentages thereof held by the Portfolio,
reflect the holdings of the Portfolio as of April 30, 2000. After such date
this information may not reflect the Portfolio's current holdings. Thus,
such information should not be relied upon for current prices of shares or
for trading securities. Further, there is no assurance that the composition
of the Portfolio's holdings will not materially change. Please refer to
pages 34 through 37 for a complete list and the percentage breakdown of the
Portfolio's holdings as of April 30, 2000.
2 The S&P 500 is a market capitalization-weighted measure of 500 widely held
common stocks. An investor cannot invest directly in an index.
3 The price-to-earnings ratio is the price of a stock divided by its earnings
per share. The price-to-cash flow is the current price divided by cash flow
per share for the last 12 months. Cash flow is a measure of a company's
financial health. It equals cash receipts minus cash payments over a given
period of time. The price-to-book ratio is the price of a stock compared to
the difference between a company's assets and liabilities.
--------------------------------------------------------------------------------
14 2000 Semi-Annual Report to Shareholders
<PAGE>
believe this growth should continue throughout this year.
The positive side of this economic strength is evident in corporate earnings
reports. Most U.S. companies have continued to report earnings above many
investment professionals' expectations, a trend that has been in place for the
last couple of years. We believe that these stronger earnings have been an
important support to the overall market.
Offsetting these positive factors are the actions of the Federal Reserve Board
("Fed") taken to slow the growth of the U.S. economy and forestall any
inflationary pressures. As a result, the Fed has increased interest rates three
times for a total of 75 basis points during the reporting period. Most recently
on May 16, 2000, the Fed raised interest rates 50 basis points to 6.50% and it
indicated that further rate increases may follow later this year.
--------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 15
<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 Returns+++
================================================================================
4/30/00 $10.10 $10.67 $0.02 $0.00 5.87%
--------------------------------------------------------------------------------
9/15/99* -- 10/31/99 10.00 10.10 0.00 0.00 1.00
================================================================================
Total $0.02 $0.00
================================================================================
It is the Portfolio's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)+++
--------------------------------------------------------------------------------
Six Months Ended 4/30/00 5.87%
--------------------------------------------------------------------------------
9/15/99* through 4/30/00 6.93
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Return (unaudited)+
--------------------------------------------------------------------------------
9/15/99* through 4/30/00 6.93%
================================================================================
+ 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.
--------------------------------------------------------------------------------
16 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Select Growth and Income Portfolio at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in the Select Growth and Income Portfolio vs.
Standard & Poor's 500 Index+
--------------------------------------------------------------------------------
September 1999 -- April 2000
[GRAPH]
Select Growth &
Income Portfolio Standard & Poor's 500 Index
---------------- ---------------------------
15-Sep-99 10,000 10,000
Sep-99 9,590 9,726
Oct-99 10,100 10,342
Nov-99 10,290 10,552
Dec-99 10863 11,172
Jan-00 10332 10,611
Feb-00 10092 10,411
Mar-00 10974 11,429
30-Apr-00 10,693 11,085
+ Hypothetical illustration of $10,000 invested on September 15, 1999
(commencement of operations), assuming the reinvestment of dividends and
capital gains, if any, at net asset value through April 30, 2000. The
Standard & Poor's 500 Index ("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. The index is unmanaged and is not subject to the same management
and trading expenses of a mutual fund.
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*
-----------------------------------------
[GRAPH]
Consumer Non-Durables 5.3%
Consumer Services 5.5%
Electronic Technology 26.3%
Finance 12.9%
Health Technology 9.3%
Processing Industries 6.2%
Retail Trade 5.7%
Technology Services 6.3%
Utilities 11.0%
Other 11.5%
* As a percentage of total common stock.
Investment Allocation as of April 30, 2000**
--------------------------------------------
[GRAPH]
Repurchase Agreement 1.1%
Common Stock 98.9%
** As a percentage of total investments.
--------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 17
<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.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: September 15, 1999
Investment experience: More than 24 years
Background: Joined E. F. Hutton Co. Inc. in 1983. Formerly a
portfolio manager for Equitable Asset Management and I.N.A. Securities.
Education: BA., Economics, Muhlenberg College
Portfolio Update
For the six months ended April 30, 2000, the Portfolio returned 0.53%. In
comparison, the Lehman Brothers Government Index2 had a return of 2.25% for the
same period.
In our view, the issues that significantly impacted the performance of the bond
market during the period were the increase in interest rates by the Federal
Reserve Board ("Fed"), the U.S. Treasury's buyback program, reduced inflows,
investor concerns regarding credit quality, the extreme levels of market
volatility and illiquidity.
The chart below shows the yields on U.S. Treasuries as of April 30, 2000 and
October 31, 1999.
Yields from U.S. Treasury Securities
4/30/00 10/31/99
------- --------
2-Year U.S. Treasury Note 6.71% 5.82%
5-Year U.S. Treasury Note 6.59% 5.98%
10-Year U.S. Treasury Bonds 6.27% 6.05%
30-Year U.S. Treasury Bonds 5.99% 6.18%
The Fed raised interest rates three times for a total of 75 basis points3 during
the reporting period, and more recently, on May 16, 2000, raised interest rates
additional 50 basis points to 6.50%. Furthermore, the Federal Open Market
Committee, led by Alan Greenspan indicated at their last meeting that it will
implement more rate increases in the months to come, if necessary. In addition,
the plan by the U.S. Treasury to buy back more than $30 billion of its long-term
debt obligations has led to reduced supply in the market. As such, the price of
longer-term bonds increased in relation to their shorter-term counterparts, as
reflected by an inverted yield curve. (The yield curve is a graphical depiction
of the relationship between the yield on bonds of the same credit quality but
different maturities.) Instead of a "normal" yield curve, with yields rising
steadily along with the maturity of Treasury bonds, the highest yields were for
shorter-term bonds.
The continued strength of the stock markets and the inverted yield curve have
made investing in bonds challenging. However, it is our belief that the actions
by the Fed may ultimately slow economic conditions and make bonds more appealing
to many investors. Additionally, we think that long-term rates could possibly
fall to 5.25% by the end of the year.
----------
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.
Portfolio 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.
2 Lehman Brothers Government Index is a broad-based index of all public debt
obligations of the U.S. government and its agencies that has as average
maturity of roughly nine years. An investor cannot invest directly in an
index.
3 A basis point is 0.01% or one one-hundredth of a percent.
--------------------------------------------------------------------------------
18 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Select Government Portfolio
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
--------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+++
================================================================================
4/30/00 $10.13 $10.02 $0.16 $0.00 0.53%
--------------------------------------------------------------------------------
9/15/99* -- 10/31/99 10.00 10.13 0.00 0.00 1.30
================================================================================
Total $0.16 $0.00
================================================================================
It is the Portfolio's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns (unaudited)+++
--------------------------------------------------------------------------------
Six Months Ended 4/30/00 0.53%
--------------------------------------------------------------------------------
9/15/99* through 4/30/00 1.84
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Return (unaudited)+
--------------------------------------------------------------------------------
9/15/99* through 4/30/00 1.84%
================================================================================
+ 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.
--------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 19
<PAGE>
--------------------------------------------------------------------------------
Select Government Portfolio at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in the Select Government Portfolio
vs. Lehman Brothers Government Index+
--------------------------------------------------------------------------------
September 1999 -- April 2000
[GRAPH]
Select Government
Portfolio Lehman Brothers
----------------- ---------------
15-Sep-99 10,000 10,000
Sep-99 10,020 10,081
Oct-99 10,130 10,097
Nov-99 10,060 10,083
Dec-99 9,919 10,017
Jan-00 9,807 10,031
Feb-00 9,940 10,174
Mar-00 10,245 10,353
30-Apr-00 10,184 10,324
+ Hypothetical illustration of $10,000 invested on September 15, 1999
(commencement of operations), assuming the reinvestment of dividends and
capital gains, if any, at net asset value through April 30, 2000. The
Lehman Brothers 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.
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.
Investment Allocation as of April 30, 2000*
-------------------------------------------
[GRAPH]
Repurchase Agreement 2.2%
U.S. Government Obligations 97.8%
* As a percentage of total investments.
U.S. Treasury Securities are debt obligations of the United States Government.
They are secured by the full faith and credit of the Federal Government, and
include such instruments as Treasury bonds, notes and bills.
Mortgage-Backed Securities are debt securities issued by U.S. government
agencies such as the Federal Home Loan Mortgage Corporation ("FHLMC"), Federal
National Mortgage Association ("FNMA") and Government National Mortgage
Association ("GNMA"). They represent thousands of individual home mortgages that
are pooled to form securities. As homeowners pay interest and principal each
month, these payments are passed on to investors. Mortgage-backed securities are
backed by the full faith and credit of the issuing agency.
--------------------------------------------------------------------------------
20 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) April 30, 2000
--------------------------------------------------------------------------------
Select Small Cap Portfolio
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 100.0%
Auto and Transportation -- 2.5%
1,600 American Axle & Manufacturing Holdings, Inc.* $ 24,000
417 CNF Transportation, Inc. 11,650
400 Cognex Corp.* 22,750
1,800 Copart, Inc.* 31,050
1,700 Dura Automotive Systems, Inc.* 27,625
579 Hayes Lemmerz International, Inc.* 9,119
681 Mesaba Holdings, Inc.* 8,513
351 SkyWest, Inc. 14,786
--------------------------------------------------------------------------------
149,493
--------------------------------------------------------------------------------
Broadcast Media -- 1.8%
1,100 The Ackerley Group, Inc. 14,300
600 Citadel Communications Corp.* 23,437
300 Radio One, Inc.* 17,400
529 Sirius Satellite Radio Inc.* 20,995
800 Westwood One, Inc. 28,300
235 WorldGate Communications, Inc.* 5,537
--------------------------------------------------------------------------------
109,969
--------------------------------------------------------------------------------
Computer Software -- 5.5%
900 AppliedTheory Corp.* 9,900
400 Aspect Development, Inc. 27,650
800 BindView Development Corp.* 6,450
1,887 BroadVision, Inc.* 82,910
1,000 Exchange Applications, Inc.* 12,187
3,074 Informix Corp.* 33,814
1,100 Mercury Interactive Corp.* 99,000
200 Micromuse, Inc.* 19,625
800 MicroStrategy, Inc.* 20,700
400 Open Market, Inc.* 4,125
500 Peregrine Systems, Inc.* 12,031
--------------------------------------------------------------------------------
328,392
--------------------------------------------------------------------------------
Consumer Discretionary -- 13.3%
1,066 99 Cents Only Stores* 40,108
549 Action Performance Co., Inc.* 5,078
773 Apollo Group, Inc., Class A Shares* 22,417
610 Bebe Stores Inc.* 5,566
508 Blyth Industries, Inc.* 15,081
1,972 The Bombay Co., Inc.* 7,149
712 Borders Group, Inc.* 11,303
996 CEC Entertainment, Inc.* 29,880
361 Central Newspapers, Inc., Class A Shares 11,078
930 Church & Dwight Co., Inc. 16,624
356 Claire's Stores, Inc. 6,564
691 Complete Business Solutions, Inc.* 15,807
330 Consolidated Graphics, Inc.* 3,898
600 CoStar Group Inc.* 14,391
244 Cox Radio, Inc., Class A Shares* 17,690
722 Day Runner, Inc.* 745
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 21
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Small Cap Portfolio
SHARES SECURITY VALUE
================================================================================
Consumer Discretionary -- 13.3% (continued)
981 The Dial Corp. $ 13,673
351 Dollar Tree Stores, Inc.* 20,314
752 Emmis Communications Corp., Class A shares* 31,960
813 Ethan Allen Interiors, Inc. 21,697
737 Family Golf Centers, Inc.* 276
996 Furniture Brands International, Inc.* 18,613
800 Getty Images, Inc.* 24,300
417 Houghton Mifflin Co. 17,332
1,200 Interim Services Inc.* 20,550
554 International Game Technology* 13,504
1,078 Jack in the Box Inc.* 26,411
834 Jones Apparel Group, Inc.* 24,759
768 Jostens, Inc. 18,960
855 Launch Media Inc.* 8,924
661 Linens `n Things, Inc.* 20,408
686 Metamor Worldwide, Inc.* 13,291
773 Navigant Consulting, Inc.* 7,682
376 Outback Steakhouse, Inc.* 12,314
952 Pacific Sunwear of California, Inc.* 32,428
534 Performance Food Group Co.* 14,084
732 Pre-Paid Legal Services, Inc.* 23,424
529 Regis Corp. 6,183
895 Rent-Way, Inc.* 23,214
874 Ross Stores, Inc. 18,136
1,749 Samsonite Corp.* 9,182
940 Shaw Industries, Inc. 14,864
371 Sotheby's Holdings, Inc., Class A Shares 6,145
2,000 The Source Information Management Co.* 29,500
1,000 TeleTech Holdings, Inc.* 32,625
498 Tupperware Corp. 9,400
518 United Stationers, Inc. 17,288
1,800 WMS Industries Inc.* 15,750
--------------------------------------------------------------------------------
790,570
--------------------------------------------------------------------------------
Consumer Staples -- 0.5%
1,917 The Earthgrains Co. 26,958
--------------------------------------------------------------------------------
Electronic - Components-- 13.5%
529 Adobe Systems Inc. 63,976
800 Alpha Industries, Inc. 41,600
300 ANADIGICS, Inc.* 22,575
900 Apex Inc.* 26,606
900 Burr-Brown Corp.* 61,312
905 C-Cube Microsystems Inc.* 58,146
400 Credence Systems Corp.* 57,100
200 Cree, Inc.* 29,100
700 Dallas Semiconductor Corp. 30,056
600 Emulex Corp.* 27,225
294 Flextronics International Ltd.* 20,653
800 In Focus Systems, Inc.* 23,950
4,500 Iomega Corp.* 16,031
See Notes to Financial Statements.
--------------------------------------------------------------------------------
22 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Small Cap Portfolio
SHARES SECURITY VALUE
================================================================================
Electronic - Components -- 13.5% (continued)
500 Lattice Semiconductor Corp.* $ 33,688
300 Micrel, Inc.* 25,950
700 PerkinElmer, Inc. 38,325
300 RadiSys Corp.* 12,413
500 SanDisk Corp.* 45,813
1,200 Sensormatic Electronics Corp.* 20,025
600 TranSwitch Corp.* 52,838
600 TriQuint Semiconductor, Inc.* 61,688
500 Varian Semiconductor Equipment Associates, Inc. 33,625
--------------------------------------------------------------------------------
802,695
--------------------------------------------------------------------------------
Finance -- 8.0%
930 Affiliated Managers Group, Inc.* 37,316
2,038 AmeriCredit Corp.* 38,085
234 Astoria Financial Corp. 6,450
379 Commerce Bancorp Inc. 15,042
651 Community First Bankshares, Inc. 10,986
361 Dain Rauscher Corp. 22,359
1,159 Doral Financial Corp. 13,836
564 Eaton Vance Corp. 23,864
534 Fidelity National Financial, Inc. 7,876
341 The FINOVA Group, Inc. 4,369
524 FPIC Insurance Group Inc.* 7,532
269 Greater Bay Bancorp 11,437
539 GreenPoint Financial Corp. 10,039
839 HCC Insurance Holdings, Inc. 9,858
696 HSB Group, Inc. 20,184
482 Hudson United Bancorp 10,875
559 Metris Cos., Inc. 20,963
1,027 North Fork Bancorporation, Inc. 16,625
696 Oriental Financial Group, Inc. 11,832
1,500 Pacific Century Financial Corp. 30,844
600 Pinnacle Holdings Inc.* 33,713
569 Queens County Bancorp Inc. 11,558
447 Radian Group Inc. 22,769
356 S1 Corp.* 19,335
330 Silicon Valley Bancshares* 20,378
315 Southwest Securities Group, Inc. 12,954
854 Sovereign Bancorp, Inc. 5,871
910 United Bankshares, Inc. 19,849
--------------------------------------------------------------------------------
476,799
--------------------------------------------------------------------------------
Health Care -- 14.3%
200 Abgenix, Inc.* 17,912
156 Affymetrix, Inc.* 21,070
935 Bergen Brunswig Corp., Class A Shares 4,675
661 CareMatrix Corp.* 620
1,200 CONMED Corp.* 31,350
727 Cooper Cos., Inc. 24,445
2,043 Covance Inc.* 18,770
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 23
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Small Cap Portfolio
SHARES SECURITY VALUE
================================================================================
Health Care -- 14.3% (continued)
800 Cytyc Corp.* $ 35,800
100 Enzo Biochem, Inc.* 4,050
788 Enzon, Inc.* 29,353
498 Forest Laboratories, Inc.* 41,863
569 Gilead Sciences Inc.* 30,833
1,210 Hanger Orthopedic Group Inc.* 6,050
576 Human Genome Sciences, Inc.* 44,100
752 IDEC Pharmaceuticals Corp.* 48,128
300 ImClone Systems Inc.* 27,300
250 Incyte Pharmaceuticals, Inc.* 19,250
1,232 InfoCure Corp.* 11,242
1,068 Jones Pharma Inc. 30,772
675 King Pharmaceuticals, Inc.* 33,328
1,621 Ligand Pharmaceuticals Inc., Class B Shares* 21,681
895 Medicis Pharmaceuticals Corp., Class A Shares* 39,156
737 MedQuist Inc.* 26,117
1,100 Mentor Corp. 19,456
810 Millennium Pharmaceuticals, Inc.* 64,294
534 Ocular Sciences, Inc.* 8,844
1,139 Omnicare, Inc. 17,299
1,200 Orthodontic Centers of America, Inc.* 25,425
646 Pharmaceutical Product Development, Inc.* 10,861
1,154 PSS World Medical, Inc.* 9,917
651 Res-Care, Inc.* 7,120
3,777 SICOR Inc.* 42,727
630 STERIS Corp.* 5,670
752 Sunrise Assisted Living, Inc.* 11,844
895 Sybron International Corp.* 27,857
615 Transkaryotic Therapies, Inc.* 18,412
259 Universal Health Services, Inc., Class B Shares* 14,180
--------------------------------------------------------------------------------
851,771
--------------------------------------------------------------------------------
Internet Content -- 1.4%
151 go.com* 2,038
600 Go2Net, Inc.* 35,700
850 VerticalNet, Inc.* 45,900
--------------------------------------------------------------------------------
83,638
--------------------------------------------------------------------------------
Materials and Processing -- 5.6%
2,008 Airgas, Inc.* 11,797
1,300 Astec Industries, Inc.* 32,662
1,800 Aviation Sales Co.* 6,862
564 Centex Construction Products, Inc. 17,413
386 Cousins Properties, Inc. 15,150
977 Encompass Services Corp.* 6,778
412 Federal Realty Investment Trust 8,755
300 Harmonic Inc.* 22,144
600 Helix Technology Corp. 30,637
124 Huttig Building Products, Inc.* 542
595 NL Industries, Inc. 9,669
402 NVR Inc.* 25,025
See Notes to Financial Statements.
--------------------------------------------------------------------------------
24 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Small Cap Portfolio
SHARES SECURITY VALUE
================================================================================
Materials and Processing -- 5.6% (continued)
457 Reckson Associates Realty Corp. $ 9,169
341 The Rouse Co. 7,992
900 Spartech Corp. 31,275
1,098 Stillwater Mining Co.* 30,744
305 USG Corp. 12,734
559 Vornado Realty Trust 19,286
1,800 Waste Connections, Inc.* 22,500
1,083 Wausau-Mosinee Paper Corp. 13,131
--------------------------------------------------------------------------------
334,265
--------------------------------------------------------------------------------
Other Energy -- 1.5%
818 Barrett Resources Corp.* 25,971
691 Basin Exploration Inc.* 9,674
285 Devon Energy Corp. 13,733
839 Friede Goldman International, Inc.* 5,191
498 Ocean Energy, Inc.* 6,443
712 Plains Resources Inc.* 10,102
854 R&B Falcon Corp.* 17,721
--------------------------------------------------------------------------------
88,835
--------------------------------------------------------------------------------
Producer Durables -- 2.8%
427 C&D Technology, Inc. 27,515
849 CommScope, Inc.* 40,327
341 Jacobs Engineering Group, Inc.* 10,678
778 Kellstrom Industries, Inc.* 3,148
752 The Kroll-O'Gara Co.* 5,781
600 Lennar Corp. 11,175
722 Manitowoc Co., Inc. 23,961
951 Mettler-Toledo International Inc.* 32,810
325 Nordson Corp. 14,523
--------------------------------------------------------------------------------
169,918
--------------------------------------------------------------------------------
Technology -- 23.5%
574 ADTRAN, Inc.* 38,781
91 Allegiance Telecom, Inc.* 6,438
1,091 American Management Systems, Inc.* 40,367
1,774 Amkor Technology, Inc.* 108,547
1,535 AnswerThink Consulting Group, Inc.* 29,549
767 Aspen Technology, Inc.* 27,133
1,392 AVT Corp.* 15,399
386 Black Box Corp.* 29,698
793 CACI International Inc., Class A Shares* 18,586
513 Carrier Access Corp.* 22,380
290 CIBER, Inc.* 5,238
880 Cognizant Technology Solutions Corp.* 40,370
488 Concentric Network Corp.* 21,228
1,530 Cypress Semiconductor Corp.* 79,464
793 Diamond Technology Partners, Inc.* 62,746
259 DST Systems, Inc.* 19,215
835 Dycom Industries, Inc.* 43,420
935 E*Trade Group, Inc.* 20,102
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 25
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Small Cap Portfolio
SHARES SECURITY VALUE
================================================================================
Technology -- 23.5% (continued)
936 Electro Scientific Industries, Inc.* $ 59,026
890 Fiserv, Inc.* 40,884
200 hi/fn, inc.* 6,787
835 iGATE Capital Corp.* 25,050
500 ISS Group, Inc.* 45,219
1,632 Lam Research Corp.* 74,868
549 MasTec, Inc.* 47,420
2,155 Mentor Graphics Corp.* 28,284
1,032 National Computer Systems, Inc. 53,084
740 Network Appliance, Inc.* 54,714
204 Network Solutions, Inc.* 30,192
712 Policy Management Systems Corp.* 9,434
800 Rare Medium Group, Inc.* 16,450
1,215 Read-Rite Corp.* 3,645
951 RWD Technologies, Inc.* 7,608
600 Sanchez Computer Associates, Inc.* 11,625
696 Sawtek, Inc.* 33,278
904 SCI Systems, Inc.* 48,138
361 SCM Microsystems, Inc.* 28,564
1,815 SpeedFam-IPEC, Inc.* 28,700
437 Visual Networks, Inc.* 17,043
1,164 Wind River Systems Inc.* 49,688
534 Xircom, Inc.* 21,060
579 Zebra Technologies Corp.* 33,003
--------------------------------------------------------------------------------
1,402,425
--------------------------------------------------------------------------------
Telecommunications and Equipment -- 3.9%
1,200 Advanced Fibre Communications, Inc.* 54,825
900 Digital Microwave Corp.* 33,244
874 Inter-Tel, Inc. 17,698
500 InterDigital Communication Corp.* 10,344
1,327 InterVoice-Brite, Inc.* 21,149
200 Leap Wireless International, Inc.* 10,275
500 Polycom, Inc.* 39,563
137 Powerwave Technologies, Inc.* 28,505
200 Terayon Communication Systems, Inc.* 18,600
--------------------------------------------------------------------------------
234,203
--------------------------------------------------------------------------------
Utilities -- 1.9%
712 CenturyTel, Inc. 17,444
635 Global TeleSystems Group, Inc.* 9,247
995 Intermedia Communications, Inc.* 40,546
925 ITC/DeltaCom, Inc.* 30,409
2,384 Paging Network, Inc.* 4,023
351 US LEC Corp., Class A Shares* 9,170
--------------------------------------------------------------------------------
110,839
--------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost-- $5,385,751**) $5,960,770
================================================================================
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
26 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Mid Cap Portfolio
SHARES SECURITY VALUE
================================================================================
COMMON STOCKS -- 92.3%
Building Materials -- 1.4%
1,255 Vulcan Materials Co. $ 54,985
--------------------------------------------------------------------------------
Commercial Services -- 4.0%
620 Advent Software, Inc.* 32,550
2,408 FactSet Research Systems Inc. 69,230
1,600 Valassis Communications, Inc.* 54,500
--------------------------------------------------------------------------------
156,280
--------------------------------------------------------------------------------
Consumer Durable -- 4.2%
880 Electronic Arts, Inc.* 53,240
1,150 Harley-Davidson, Inc. 45,784
585 SPX Corp. 64,277
--------------------------------------------------------------------------------
163,301
--------------------------------------------------------------------------------
Consumer Non-Durables -- 2.8%
2,090 Keebler Foods Co.* 65,704
2,000 The Pepsi Bottling Group, Inc. 43,125
--------------------------------------------------------------------------------
108,829
--------------------------------------------------------------------------------
Consumer Services -- 6.1%
700 Cablevision Systems Corp., Class A Shares* 47,381
650 Entercom Communications Corp.* 27,625
2,600 Imax Corp.* 59,800
2,370 Premier Parks, Inc. 51,103
1,050 Spanish Broadcasting System, Inc.* 19,622
300 Univision Communications, Inc.* 32,775
--------------------------------------------------------------------------------
238,306
--------------------------------------------------------------------------------
Energy -- 2.6%
800 Anadarko Petroleum Corp. 34,750
1,715 Newfield Exploration Co.* 69,672
--------------------------------------------------------------------------------
104,422
--------------------------------------------------------------------------------
Finance -- 15.5%
2,680 ACE Ltd. 64,152
1,445 Ambac Financial Group, Inc. 69,360
2,700 Annuity and Life Re Holdings, Ltd. 58,388
950 Arthur J. Gallagher & Co. 35,387
1,000 Capital One Financial Corp. 43,750
880 Commerce Bancorp, Inc. 34,925
1,300 Countrywide Credit Industries, Inc. 35,912
1,750 IndyMac Mortgage Holdings, Inc. 22,859
600 Marshall & Ilsley Corp. 27,862
1,854 Nationwide Financial Services, Inc. 51,680
1,300 North Fork Bancorporation, Inc. 21,044
650 Providian Financial Corp. 57,241
250 State Street Corp. 24,219
397 Waddell & Reed Financial, Inc. 10,583
1,075 XL Capital, Ltd., Class A Shares 51,197
--------------------------------------------------------------------------------
608,559
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 27
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Mid Cap Portfolio
SHARES SECURITY VALUE
================================================================================
Health Care - Drugs -- 5.6%
155 Affymetrix, Inc.* $ 20,934
425 Forest Laboratories, Inc.* 35,726
200 Genentech, Inc.* 23,400
260 MedImmune, Inc.* 41,584
150 Millennium Pharmaceuticals, Inc.* 11,906
970 Sepracor, Inc.* 89,240
--------------------------------------------------------------------------------
222,790
--------------------------------------------------------------------------------
Health Care - Services -- 1.1%
565 Wellpoint Health Networks Inc.* 41,669
--------------------------------------------------------------------------------
Industrial Services -- 7.1%
550 The AES Corp. 49,466
830 BJ Services Co.* 58,307
400 Calpine Corp.* 36,600
830 Cooper Cameron Corp.* 62,250
1,330 Diamond Offshore Drilling, Inc. 53,616
500 Weatherford International, Inc.* 20,313
--------------------------------------------------------------------------------
280,552
--------------------------------------------------------------------------------
Process Industries -- 2.3%
1,075 Bowater Inc. 59,125
850 Ecolab Inc. 33,203
--------------------------------------------------------------------------------
92,328
--------------------------------------------------------------------------------
Producer Manufacturing -- 2.9%
500 Grant Prideco, Inc.* 9,625
1,331 Molex Inc., Class A Shares 53,240
1,555 Mueller Industries, Inc.* 51,218
--------------------------------------------------------------------------------
114,083
--------------------------------------------------------------------------------
Retail -- 2.4%
950 Bed Bath & Beyond Inc.* 34,853
400 Best Buy Co., Inc.* 32,300
450 Dollar Tree Stores, Inc.* 26,044
--------------------------------------------------------------------------------
93,197
--------------------------------------------------------------------------------
Technology -- 26.6%
5 724 Solutions, Inc.* 253
800 ADC Telecommunications, Inc.* 48,600
20 Aether Systems, Inc.* 3,329
350 Altera Corp* 35,787
350 Applied Micro Circuits Corp.* 45,106
400 Atmel Corp.* 19,575
25 Avanex Corp.* 3,047
400 Citrix Systems, Inc.* 24,425
200 CMGI Inc.* 14,250
30 eBay, Inc.* 4,776
1,500 Fiserv, Inc.* 68,906
120 InfoSpace, Inc.* 8,617
805 Intuit, Inc.* 28,930
See Notes to Financial Statements.
--------------------------------------------------------------------------------
28 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30, 2000
--------------------------------------------------------------------------------
Select Mid Cap Portfolio
SHARES SECURITY VALUE
================================================================================
Technology -- 26.6% (continued)
550 Jabil Circuit, Inc.* $ 22,516
90 Juniper Networks, Inc.* 19,142
800 L-3 Communications Holdings, Inc.* 42,600
360 Lexmark International Group, Inc., Class A Shares* 42,480
1,200 Linear Technology Corp. 68,550
1,200 Maxim Integrated Products, Inc.* 77,775
425 Mercury Interactive Corp.* 38,250
200 NBC Internet, Inc., Class A Shares* 4,625
350 Novellus Systems, Inc.* 23,341
25 Palm, Inc.* 681
100 PMC-Sierra, Inc.* 19,188
400 Project Software & Development, Inc.* 12,200
575 Sanmina Corp.* 34,536
680 Siebel Systems, Inc.* 83,555
150 Snowball.Com, Inc.* 544
405 Teradyne, Inc.* 44,550
835 VERITAS Software Corp.* 89,567
200 VerticalNet, Inc.* 10,800
700 Waters Corp.* 66,325
10 webMethods, Inc.* 900
500 Xilinx, Inc.* 36,625
--------------------------------------------------------------------------------
1,044,351
--------------------------------------------------------------------------------
Telecommunications -- 3.1%
1,675 CenturyTel, Inc. 41,037
115 COLT Telecom Group PLC, Sponsored ADR* 19,636
600 Covad Communications Group, Inc.* 16,650
505 Intermedia Communications Inc.* 20,579
80 Net2000 Communications, Inc.* 1,180
450 Time Warner Telecom Inc., Class A Shares* 24,638
--------------------------------------------------------------------------------
123,720
--------------------------------------------------------------------------------
Transportation -- 2.2%
690 Kansas City Southern Industries, Inc. 49,594
2,000 Knightsbridge Tanker Ltd. 37,250
--------------------------------------------------------------------------------
86,844
--------------------------------------------------------------------------------
Utilities -- 2.4%
575 The Coastal Corp. 28,858
500 Dynegy Inc., Class A Shares 32,719
700 The Montana Power Co. 30,845
--------------------------------------------------------------------------------
92,422
--------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $2,956,660) 3,626,638
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 29
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Mid Cap Portfolio
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 7.7%
$304,000 Morgan Stanley Dean Witter & Co., 5.680%
due 5/1/00; Proceeds at maturity -- $304,144;
(Fully collateralized by U.S. Treasury Bonds,
9.250% due 2/15/16; Market value -- $310,402)
(Cost -- $304,000) $ 304,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $3,260,660**) $3,930,638
================================================================================
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
30 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Growth Portfolio
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 98.0%
Consumer Durables -- 1.9%
475 Electronic Arts, Inc.* $ 28,738
800 SPX Corp. 87,900
--------------------------------------------------------------------------------
116,638
--------------------------------------------------------------------------------
Consumer Non-Durables -- 3.5%
1,200 The Coca-Cola Co. 56,475
700 Colgate-Palmolive Co. 39,988
900 The Gillette Co. 33,300
400 Keebler Foods Co.* 12,575
350 McDonald's Corp. 13,344
800 PepsiCo, Inc. 29,350
500 The Procter & Gamble Co. 29,813
--------------------------------------------------------------------------------
214,845
--------------------------------------------------------------------------------
Consumer Services -- 7.3%
300 AMFM Inc.* 19,913
1,550 CBS Corp.* 91,063
1,800 Cendant Corp.* 27,788
400 Clear Channel Communications, Inc.* 28,800
1,000 Cox Communications, Inc.* 42,813
900 MediaOne Group, Inc.* 68,063
1,200 Time Warner Inc. 107,925
200 United Parcel Service, Inc., Class B Shares 13,300
1,100 The Walt Disney Co. 47,644
--------------------------------------------------------------------------------
447,309
--------------------------------------------------------------------------------
Energy -- 4.8%
992 BP Amoco PLC, Sponsored ADR 50,592
800 Burlington Resources Inc. 31,450
300 Chevron Corp. 25,538
1,300 Conoco Inc., Class A Shares 30,956
300 Enron Corp. 20,906
1,328 Exxon Corp. 103,169
500 Royal Dutch Petroleum Co., NY Shares 28,688
--------------------------------------------------------------------------------
291,299
--------------------------------------------------------------------------------
Finance -- 15.3%
700 Ace Ltd. 16,756
1,500 AMBAC Financial Group, Inc. 72,000
850 American International Group, Inc. 93,234
1,800 Annuity and Life Re Holdings, Ltd. 38,925
800 AXA Financial, Inc. 26,100
900 Bank of America Corp. 44,100
21 Berkshire Hathaway Inc., Class B Shares* 40,239
1,800 Capital One Financial Corp. 78,750
1,700 The Chase Manhattan Corp. 122,506
1,750 Countrywide Credit Industries, Inc. 48,344
1,000 Fannie Mae 60,312
3,200 IndyMac Mortgage Holdings, Inc. 41,800
600 Morgan Stanley Dean Witter & Co. 46,050
900 Providian Financial Corp. 79,256
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 31
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Growth Portfolio
SHARES SECURITY VALUE
================================================================================
Finance -- 15.3% (continued)
950 Wells Fargo Co. $ 39,009
1,750 XL Capital Ltd. 83,344
--------------------------------------------------------------------------------
930,725
--------------------------------------------------------------------------------
Health Care -- 11.1%
230 Affymetrix, Inc.* 31,064
600 American Home Products Corp. 33,712
1,000 Bristol-Myers Squibb Co. 52,438
300 Genentech, Inc.* 35,100
700 Johnson & Johnson 57,750
2,000 Merck & Co., Inc. 139,000
2,000 Pfizer Inc. 84,250
1,100 Pharmacia Corp. 54,931
1,085 Sepracor Inc.* 99,820
800 Warner-Lambert Co. 91,050
--------------------------------------------------------------------------------
679,115
--------------------------------------------------------------------------------
Industrial Services -- 2.8%
1,400 The AES Corp.* 125,912
1,000 Halliburton Co. 44,188
--------------------------------------------------------------------------------
170,100
--------------------------------------------------------------------------------
Insurance -- 0.9%
1,100 AFLAC, Inc. 53,693
--------------------------------------------------------------------------------
Producer Manufacturing -- 5.6%
200 Alcoa, Inc. 12,975
110 The Dow Chemical Co. 12,430
500 E.I. du Pont de Nemours and Co. 23,719
1,400 General Electric Co. 220,150
200 International Paper Co. 7,350
200 Minnesota Mining and Manufacturing Co. 17,300
1,000 Tyco International Ltd. 45,937
--------------------------------------------------------------------------------
339,861
--------------------------------------------------------------------------------
Retail -- 5.0%
500 The Home Depot, Inc. 28,031
500 The Kroger Co.* 9,281
700 Lowe's Cos., Inc. 34,650
600 Safeway Inc.* 26,475
800 Target Corp. 53,250
1,400 The TJX Cos., Inc. 26,863
2,300 Wal-Mart Stores, Inc. 127,363
--------------------------------------------------------------------------------
305,913
--------------------------------------------------------------------------------
Software -- 5.6%
2,200 Microsoft Corp.* 153,450
2,100 Oracle Corp.* 167,868
190 VERITAS Software Corp.* 20,380
--------------------------------------------------------------------------------
341,698
--------------------------------------------------------------------------------
Technology -- 25.1%
12 Agilent Technologies, Inc.* 1,064
1,900 America Online, Inc.* 113,643
See Notes to Financial Statements.
--------------------------------------------------------------------------------
32 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Growth Portfolio
SHARES SECURITY VALUE
================================================================================
Technology -- 25.1% (continued)
850 Applied Materials, Inc.* $ 86,541
4,200 Cisco Systems, Inc.* 291,178
670 Citrix Systems, Inc.* 40,912
500 Corning Inc. 98,750
900 Dell Computer Corp.* 45,112
900 EMC Corp.* 125,043
1,475 Intel Corp. 187,048
900 International Business Machines Corp. 100,463
600 Lexmark International Group, Inc., Class A Shares* 70,800
800 Linear Technology Corp. 45,700
1,200 Lucent Technologies Inc. 74,625
1,400 Sun Microsystems, Inc.* 128,713
200 Texas Instruments, Inc. 32,575
700 Xilinx, Inc.* 51,275
300 Yahoo! Inc.* 39,075
--------------------------------------------------------------------------------
1,532,517
--------------------------------------------------------------------------------
Telecommunications and Equipment -- 2.9%
400 Motorola, Inc. 47,625
1,100 Nokia Oyj, Sponsored ADR 62,562
250 Nortel Networks Corp. 28,313
320 QUALCOMM Inc.* 34,700
--------------------------------------------------------------------------------
173,200
--------------------------------------------------------------------------------
Transportation -- 0.2%
800 Knightsbridge Tankers Ltd. 14,900
--------------------------------------------------------------------------------
Utilities -- 6.0%
1,100 AT&T Corp. 51,356
150 AT&T Wireless Group* 4,772
600 Bell Atlantic Corp. 35,550
1,800 MCI WorldCom, Inc.* 81,787
1,025 Qwest Communications International Inc.* 44,459
1,700 SBC Communications Inc. 74,481
400 Sprint Corp. 24,600
900 Sprint Corp. (PCS Group) 49,500
--------------------------------------------------------------------------------
366,505
--------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $5,038,635) 5,978,318
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 2.0%
$124,000 Morgan Stanley Dean Witter & Co., 5.680%
due 5/1/00; Proceeds at maturity -- $124,059;
(Fully collateralized by U.S. Treasury Bonds,
9.250% due 2/15/16; Market value -- $126,611)
(Cost -- $124,000) 124,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $5,162,635**) $6,102,318
================================================================================
* 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 33
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Growth Portfolio
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 98.9%
Commercial Services -- 0.8%
600 SUPERVALU Inc. $ 12,412
300 W.W. Grainger, Inc. 13,013
--------------------------------------------------------------------------------
25,425
--------------------------------------------------------------------------------
Consumer Durables -- 2.0%
600 Ford Motor Co. 32,812
300 General Motors Corp. 28,088
--------------------------------------------------------------------------------
60,900
--------------------------------------------------------------------------------
Consumer Non-Durables -- 5.3%
400 The Coca-Cola Co. 18,825
700 ConAgra, Inc. 13,212
600 General Mills, Inc. 21,825
100 The Gillette Co. 3,700
500 Kimberly-Clark Corp. 29,031
800 PepsiCo, Inc. 29,350
200 The Procter & Gamble Co. 23,850
400 Quaker Oats Co. 13,038
300 V.F. Corp. 8,475
--------------------------------------------------------------------------------
161,306
--------------------------------------------------------------------------------
Consumer Services -- 5.5%
400 Comcast Corp., Class A Shares* 16,025
500 Cox Communications, Inc., Class A Shares 21,406
400 H&R Block, Inc. 16,725
300 Knight-Ridder, Inc. 14,719
300 McDonald's Corp. 11,438
500 The New York Times Co., Class A Shares 20,594
400 The Reader's Digest Association, Inc., Class A Shares 12,800
600 Viacom Inc., Class B Shares* 32,625
500 The Walt Disney Co. 21,656
--------------------------------------------------------------------------------
167,988
--------------------------------------------------------------------------------
Electronic Technology -- 26.0%
200 Applied Materials, Inc. 20,362
500 Automatic Data Processing, Inc. 26,906
1,600 Cisco Systems, Inc.* 110,925
300 Compaq Computer Corp. 8,775
700 Compuware Corp. 8,794
900 Dell Computer Corp.* 45,113
100 EMC Corp. 13,894
500 General Dynamics Corp. 29,250
400 Hewlett-Packard Co. 54,000
500 Honeywell International Inc. 28,000
1,000 Intel Corp. 126,812
600 International Business Machines Corp. 66,975
200 Lexmark International Group, Inc.* 23,600
500 Lucent Technologies Inc. 31,094
300 Motorola, Inc. 35,719
200 Oracle Corp.* 15,988
See Notes to Financial Statements.
--------------------------------------------------------------------------------
34 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Growth and Income Portfolio
SHARES SECURITY VALUE
================================================================================
Electronic Technology -- 26.0% (continued)
600 SCI Systems, Inc.* $ 31,950
400 Seagate Technology, Inc.* 20,325
300 Telefonaktiebolaget LM Ericsson ADR 26,531
200 Teradyne, Inc.* 22,000
100 Texas Instruments Inc. 16,288
700 Unisys Corp.* 16,231
300 United Technologies Corp. 18,656
--------------------------------------------------------------------------------
798,188
--------------------------------------------------------------------------------
Energy Minerals -- 3.3%
700 Conoco Inc., Class A Shares 16,669
800 Exxon Mobil Corp. 62,150
900 USX-Marathon Group 20,981
--------------------------------------------------------------------------------
99,800
--------------------------------------------------------------------------------
Finance -- 12.8%
300 A.G. Edwards & Son, Inc. 11,288
700 The Allstate Corp. 16,538
100 American International Group, Inc. 10,969
600 AXA Financial, Inc. 19,575
500 Bank of America Corp. 24,500
525 The Bear Stearns Cos. Inc. 22,509
400 Chase Manhattan Corp. 28,825
300 CIGNA Corp. 23,925
700 Conseco, Inc. 3,806
200 Fannie Mae 12,062
400 First Union Corp. 12,750
473 Fleet Boston Financial Corp. 16,762
200 Goldman Sachs Group, Inc. 18,650
700 GreenPoint Financial Corp. 13,037
200 J.P. Morgan & Co., Inc. 25,675
700 KeyCorp 12,950
100 Lehman Brothers Holdings Inc. 8,206
600 Morgan Stanley Dean Witter & Co. 46,050
400 PNC Financial Services Group 17,450
500 Starwood Hotels & Resorts Worldwide, Inc. 14,219
600 UnionBanCal Corp. 16,612
600 Washington Mutual Inc. 15,338
--------------------------------------------------------------------------------
391,696
--------------------------------------------------------------------------------
Health Services -- 1.1%
700 Columbia/HCA Healthcare Corp. 19,906
200 Wellpoint Health Networks Inc.* 14,750
--------------------------------------------------------------------------------
34,656
--------------------------------------------------------------------------------
Health Technology -- 9.2%
300 Abbott Laboratories 11,531
100 American Home Products Corp. 5,619
600 Amgen Inc.* 33,600
100 Baxter International Inc. 6,512
300 Biogen, Inc. 17,644
400 Bristol-Myers Squibb Co. 20,975
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 35
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Growth and Income Portfolio
SHARES SECURITY VALUE
================================================================================
Health Technology -- 9.2% (continued)
20 Edwards Lifesciences Corp.* $ 300
400 Eli Lilly & Co. 30,925
300 Johnson & Johnson 24,750
700 Merck & Co., Inc. 48,650
800 Mylan Laboratories Inc. 22,700
800 Pfizer Inc. 33,700
100 Schering-Plough Corp. 4,031
500 Watson Pharmaceuticals, Inc.* 22,406
--------------------------------------------------------------------------------
283,406
--------------------------------------------------------------------------------
Industrial Services -- 0.6%
600 Fluor Corp. 20,138
--------------------------------------------------------------------------------
Non-Energy Minerals -- 0.8%
400 Alcoa Inc. 25,950
--------------------------------------------------------------------------------
Processing Industries -- 6.1%
600 Air Products and Chemicals, Inc. 18,638
200 The Dow Chemical Co. 22,600
800 General Electric Co. 125,800
600 Rohm and Haas Co. 21,375
--------------------------------------------------------------------------------
188,413
--------------------------------------------------------------------------------
Producer Manufacturing -- 1.7%
500 Caterpillar Inc. 19,719
400 Ingersoll-Rand Co. 18,775
200 Johnson Controls, Inc. 12,662
--------------------------------------------------------------------------------
51,156
--------------------------------------------------------------------------------
Retail Trade -- 5.6%
200 Best Buy Co., Inc.* 16,150
600 Federated Department Stores, Inc.* 20,400
500 The Gap, Inc. 18,375
600 The Home Depot, Inc. 33,638
600 The Limited, Inc. 27,112
700 The TJX Cos., Inc. 13,431
800 Wal-Mart Stores, Inc. 44,300
--------------------------------------------------------------------------------
173,406
--------------------------------------------------------------------------------
Technology Services -- 6.3%
600 America Online, Inc.* 35,888
300 BMC Software, Inc.* 14,044
400 Electronic Data Systems Corp. 27,500
1,025 Microsoft Corp.* 71,494
200 Siebel Systems, Inc.* 24,575
200 Sun Microsystems, Inc.* 18,387
--------------------------------------------------------------------------------
191,888
--------------------------------------------------------------------------------
Transportation -- 0.9%
200 AMR Corp. 6,813
144 Sabre Holdings Corp.* 5,031
700 Southwest Airlines Co. 15,181
--------------------------------------------------------------------------------
27,025
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
36 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Growth and Income Portfolio
SHARES SECURITY VALUE
================================================================================
Utilities -- 10.9%
700 AT&T Corp. $ 32,681
100 Bell Atlantic Corp. 5,925
600 BellSouth Corp. 29,213
600 The Coastal Corp. 30,112
400 DTE Energy Co. 13,050
300 Duke Energy Corp. 17,250
600 Edison International 11,437
600 Enron Corp. 41,812
500 GTE Corp. 33,875
900 MCI Worldcom, Inc.* 40,894
500 PECO Energy Co. 20,844
900 SBC Communications Inc. 39,431
500 Texas Utilities Co. 16,844
--------------------------------------------------------------------------------
333,368
--------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $2,898,259) 3,034,709
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 1.1%
$35,000 Morgan Stanley Dean Witter & Co., 5.680%
due 5/1/00; Proceeds at maturity -- $35,016;
(Fully collateralized by U.S. Treasury Bonds,
9.250% due 2/15/16; Market value -- $35,737)
(Cost -- $35,000) 35,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $2,933,259**) $3,069,709
================================================================================
* 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 37
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
Select Government Portfolio
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
============================================================================================================================
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS -- 97.8%
$5,000,000 U.S. Treasury Notes, 6.000% due 8/15/09
(Cost -- $4,956,250) $4,891,700
============================================================================================================================
REPURCHASE AGREEMENT -- 2.2%
111,000 Morgan Stanley Dean Witter & Co., 5.680% due 5/1/00; Proceeds at maturity -- $111,053;
(Fully collateralized by U.S. Treasury Bonds, 9.250% due 2/15/16;
Market value -- $113,337) (Cost -- $111,000) 111,000
============================================================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $5,067,250*) $5,002,700
============================================================================================================================
</TABLE>
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
38 2000 Semi-Annual Report to Shareholders
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) April 30, 2000
-----------------------------------------------------------------------------------------------------------------------
Select Select Select Select Select
Small Cap Mid Cap Growth Growth and Government
Portfolio Portfolio Portfolio Income Portfolio Portfolio
=======================================================================================================================
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at cost $ 5,385,751 $ 3,260,660 $ 5,162,635 $ 2,933,259 $ 5,067,250
=======================================================================================================================
Investments, at value $ 5,960,770 $ 3,930,638 $ 6,102,318 $ 3,069,709 $ 5,002,700
Cash 12,663 469 879 543 --
Dividends and interest receivable 506 1,526 3,311 2,503 61,006
Receivable from manager 30,417 25,325 25,505 32,076 33,850
-----------------------------------------------------------------------------------------------------------------------
Total Assets 6,004,356 3,957,958 6,132,013 3,104,831 5,097,556
-----------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable to bank -- -- -- -- 166
Payable for securities purchased -- -- 4,425 -- --
Accrued expenses 16,322 10,235 17,548 17,600 19,863
-----------------------------------------------------------------------------------------------------------------------
Total Liabilities 16,322 10,235 21,973 17,600 20,029
-----------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 5,988,034 $ 3,947,723 $ 6,110,040 $ 3,087,231 $ 5,077,527
=======================================================================================================================
NET ASSETS:
Par value of shares of
beneficial interest $ 5,014 $ 3,002 $ 4,940 $ 2,892 $ 5,066
Capital paid in excess of par value 5,012,602 3,001,910 4,931,135 2,890,636 5,059,572
Undistributed (overdistributed)
net investment income (21,072) (2,669) (5,236) 1,569 77,439
Accumulated net realized gain
from security transactions and
futures contracts 416,471 275,502 239,518 55,684 --
Net unrealized appreciation
(depreciation) of investments 575,019 669,978 939,683 136,450 (64,550)
-----------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 5,988,034 $ 3,947,723 $ 6,110,040 $ 3,087,231 $ 5,077,527
=======================================================================================================================
Shares Outstanding 501,414 300,167 493,953 289,231 506,579
-----------------------------------------------------------------------------------------------------------------------
Net Asset Value $11.94 $13.15 $12.37 $10.67 $10.02
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 39
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Statements of Operations (unaudited) For the Six Months Ended April 30, 2000
-----------------------------------------------------------------------------------------------------------------------
Select Select Select Select Select
Small Cap Mid Cap Growth Growth and Government
Portfolio Portfolio Portfolio Income Portfolio Portfolio
=======================================================================================================================
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 9,848 $ 8,335 $ 18,316 $ 20,194 $ --
Interest 1,250 7,382 4,960 674 150,497
Less: Foreign withholding tax -- -- -- (10) --
-----------------------------------------------------------------------------------------------------------------------
Total Investment Income 11,098 15,717 23,276 20,858 150,497
-----------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees (Note 2) 23,088 13,387 21,765 11,662 15,000
Shareholder communications 12,754 7,500 13,000 11,675 20,000
Audit and legal 11,339 10,416 9,716 11,314 9,964
Shareholder and system servicing fees 7,624 7,624 8,372 9,257 9,726
Custody 4,933 2,787 2,231 411 100
Registration fees 660 395 663 796 --
Trustees' fees 127 71 118 70 162
Other 4,102 2,277 3,013 3,458 950
-----------------------------------------------------------------------------------------------------------------------
Total Expenses 64,627 44,457 58,878 48,643 55,902
Less: Investment advisory fee waivers
and expense reimbursements (Note 2) (33,843) (27,500) (31,309) (33,871) (35,901)
-----------------------------------------------------------------------------------------------------------------------
Net Expenses 30,784 16,957 27,569 14,772 20,001
-----------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (19,686) (1,240) (4,293) 6,086 130,496
-----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FUTURES
CONTRACTS (NOTES 3 AND 5):
Realized Gain From:
Security transactions (excluding
short-term securities) 619,920 333,266 243,930 57,597 --
Futures contracts -- 7,962 -- -- --
-----------------------------------------------------------------------------------------------------------------------
Net Realized Gain 619,920 341,228 243,930 57,597 --
-----------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation
(Depreciation) of Investments:
Beginning of period 142,646 93,912 253,697 29,436 39,500
End of period 575,019 669,978 939,683 136,450 (64,550)
-----------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized
Appreciation (Depreciation) 432,373 576,066 685,986 107,014 (104,050)
-----------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments
and Futures Contracts 1,052,293 917,294 929,916 164,611 (104,050)
-----------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 1,032,607 $ 916,054 $ 925,623 $ 170,697 $ 26,446
=======================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
40 2000 Semi-Annual Report to Shareholders
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited) For the Six Months Ended April 30, 2000
-----------------------------------------------------------------------------------------------------------------------
Select Select Select Select Select
Small Cap Mid Cap Growth Growth and Government
Portfolio Portfolio Portfolio Income Portfolio Portfolio
=======================================================================================================================
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (19,686) $ (1,240) $ (4,293) $ 6,086 $ 130,496
Net realized gain 619,920 341,228 243,930 57,597 --
Change in net unrealized
appreciation (depreciation) 432,373 576,066 685,986 107,014 (104,050)
-----------------------------------------------------------------------------------------------------------------------
Increase in Net Assets
From Operations 1,032,607 916,054 925,623 170,697 26,446
-----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (25,069) (5,008) (5,012) (7,000) (79,999)
-----------------------------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (25,069) (5,008) (5,012) (7,000) (79,999)
-----------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
(NOTE 10):
Net proceeds from sale of shares 1,405,711 1,393,775 3,274,141 1,319,476 398,878
Net asset value of shares issued
for reinvestment of dividends 25,069 5,008 5,012 7,000 79,999
Cost of shares reacquired (1,413,027) (1,393,756) (3,363,275) (1,448,318) (414,224)
-----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
From Fund Share Transactions 17,753 5,027 (84,122) (121,842) 64,653
-----------------------------------------------------------------------------------------------------------------------
Increase in Net Assets 1,025,291 916,073 836,489 41,855 11,100
NET ASSETS:
Beginning of period 4,962,743 3,031,650 5,273,551 3,045,376 5,066,427
-----------------------------------------------------------------------------------------------------------------------
End of period* $ 5,988,034 $ 3,947,723 $ 6,110,040 $ 3,087,231 $ 5,077,527
=======================================================================================================================
* Includes undistributed (overdistributed)
net investment income of: $(21,072) $(2,669) $(5,236) $1,569 $77,439
=======================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 41
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued) For the Period Ended October 31, 1999(a)
-----------------------------------------------------------------------------------------------------------------------
Select Select Select Select Select
Small Cap Mid Cap Growth Growth and Government
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
=======================================================================================================================
(a) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
42 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
The Select Small Cap, formerly known as 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: Government, Growth, Growth and Income, International
Equity, Mid Cap, Municipal Bond and Small Cap, formerly known as Emerging Growth
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.
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 43
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
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 LLC ("SSBC"), a subsidiary of Salomon Smith Barney
Holdings Inc. ("SSBH"), which, in turn, is a subsidiary of Citigroup Inc.
("Citigroup"), acts as the investment advisor to the Trust.
The Select Small Cap, Select Mid Cap, Select Growth, and Select Growth and
Income Portfolios pay SSBC an investment advisory fee calculated at an annual
rate of 0.75% of their average daily net assets and the Select Government
Portfolio pays SSBC an investment advisory 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 six months ended April 30, 2000, SSBC waived all of its
investment advisory fees for the Portfolios. In addition, expenses were
reimbursed in the amounts of $10,755, $14,113, $9,544, $22,209 and $20,901 for
the Select Small Cap, Select Mid Cap, Select Growth, Select Growth and Income,
and Select Government Portfolios, respectively.
CFBDS Inc. acts as the Portfolios' distributor.
Effective October 1999, Citi Fiduciary Trust Company ("CFTC"), another
subsidiary of Citigroup, became the Portfolios' transfer agent and PFPC Global
Fund Services ("PFPC") became the sub-transfer agent. CFTC receives account fees
and asset-based fees that vary according to the size and type of account. PFPC
is responsible for shareholder recordkeeping and financial processing for all
shareholder accounts and is paid by CFTC. During the six months ended April 30,
2000, the Portfolios paid transfer agent fees of $12,500 to CFTC.
3. Investments
During the six months ended April 30, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
Purchases Sales
================================================================================
Select Small Cap Portfolio $ 2,469,142 $ 2,480,036
--------------------------------------------------------------------------------
Select Mid Cap Portfolio 1,563,098 1,546,644
--------------------------------------------------------------------------------
Select Growth Portfolio 1,379,209 1,270,309
--------------------------------------------------------------------------------
Select Growth and Income Portfolio 215,896 351,503
--------------------------------------------------------------------------------
Select Government Portfolio -- --
================================================================================
At April 30, 2000, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
Net Unrealized
Appreciation
Appreciation Depreciation (Depreciation)
================================================================================
Select Small Cap Portfolio $ 1,337,104 $ (762,085) $ 575,019
--------------------------------------------------------------------------------
Select Mid Cap Portfolio 802,325 (132,347) 669,978
--------------------------------------------------------------------------------
Select Growth Portfolio 1,223,605 (283,922) 939,683
--------------------------------------------------------------------------------
Select Growth and Income Portfolio 405,950 (269,500) 136,450
--------------------------------------------------------------------------------
Select Government Portfolio -- (64,550) (64,550)
================================================================================
--------------------------------------------------------------------------------
44 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
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.
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 April 30, 2000, the Portfolios had no open futures contracts.
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 April 30, 2000, 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
--------------------------------------------------------------------------------
The Concert Investment Series--Select Portfolios 45
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
--------------------------------------------------------------------------------
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.
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 six months ended April 30, 2000, 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.
At April 30, 2000, 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 Small Cap 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.
--------------------------------------------------------------------------------
46 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
10. Shares of Beneficial Interest
At April 30, 2000, 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:
Six Months Ended Period Ended
April 30, 2000 October 31, 1999(a)
================================================================================
Select Small Cap Portfolio
Shares sold 112,940 515,061
Shares issued on reinvestment 2,043 --
Shares reacquired (113,601) (15,029)
--------------------------------------------------------------------------------
Net Increase 1,382 500,032
================================================================================
Select Mid Cap Portfolio
Shares sold 114,449 315,703
Shares issued on reinvestment 426 --
Shares reacquired (114,539) (15,872)
--------------------------------------------------------------------------------
Net Increase 336 299,831
================================================================================
Select Growth Portfolio
Shares sold 280,246 525,358
Shares issued on reinvestment 424 --
Shares reacquired (288,718) (23,357)
--------------------------------------------------------------------------------
Net Increase (Decrease) (8,048) 502,001
================================================================================
Select Growth and Income Portfolio
Shares sold 126,336 320,772
Shares issued on reinvestment 647 --
Shares reacquired (139,243) (19,281)
--------------------------------------------------------------------------------
Net Increase (Decrease) (12,260) 301,491
================================================================================
Select Government Portfolio
Shares sold 40,092 503,093
Shares issued on reinvestment 8,163 --
Shares reacquired (41,680) (3,089)
--------------------------------------------------------------------------------
Net Increase 6,575 500,004
================================================================================
(a) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
--------------------------------------------------------------------------------
The Concert Investment Series -- Select Portfolios 47
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31, except where noted:
Select Small Cap Portfolio 2000(1) 1999(2)
================================================================================
Net Asset Value, Beginning of Period $ 9.92 $10.00
--------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss)(3) (0.04) 0.05
Net realized and unrealized gain (loss) 2.11 (0.13)
--------------------------------------------------------------------------------
Total Income (Loss) From Operations 2.07 (0.08)
--------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.05) --
--------------------------------------------------------------------------------
Total Distributions (0.05) --
--------------------------------------------------------------------------------
Net Asset Value, End of Period $11.94 $ 9.92
--------------------------------------------------------------------------------
Total Return++ 20.85% (0.80)%
--------------------------------------------------------------------------------
Net Assets, End of Period (000s) $5,988 $4,963
--------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(3)(4) 1.00% 1.00%
Net investment income (loss) (0.64) 3.96
--------------------------------------------------------------------------------
Portfolio Turnover Rate 40% 0%
================================================================================
(1) For the six months ended April 30, 2000 (unaudited).
(2) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
(3) The Advisor has agreed to waive all of its fees for the six months ended
April 30, 2000 and the period ended October 31, 1999. The Advisor also
reimbursed expenses of $10,755 and $15,763 for the six months ended April
30, 2000 and the period ended October 31, 1999, respectively. If such fees
were not waived and expenses not reimbursed, the per share effect on net
investment income and the expense ratios would have been as follows:
Expense Ratios
Net Investment Income Without Fee Waivers and/or
Per Share Decreases Expense Reimbursements+
--------------------- --------------------------
2000 1999 2000 1999
-------- -------- -------- --------
Select Small Cap Portfolio $ 0.07 $ 0.04 2.09% 4.38%
(4) 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.
--------------------------------------------------------------------------------
48 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31, except where noted:
Select Mid Cap Portfolio 2000(1) 1999(2)
================================================================================
Net Asset Value, Beginning of Period $10.11 $10.00
--------------------------------------------------------------------------------
Income From Operations:
Net investment income (loss)(3) (0.00)* 0.01
Net realized and unrealized gain 3.06 0.10
--------------------------------------------------------------------------------
Total Income From Operations 3.06 0.11
--------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.02) --
--------------------------------------------------------------------------------
Total Distributions (0.02) --
--------------------------------------------------------------------------------
Net Asset Value, End of Period $13.15 $10.11
--------------------------------------------------------------------------------
Total Return++ 30.26% 1.10%
--------------------------------------------------------------------------------
Net Assets, End of Period (000s) $3,948 $3,032
--------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(3)(4) 0.95% 0.95%
Net investment income (loss) (0.07) 1.00
--------------------------------------------------------------------------------
Portfolio Turnover Rate 47% 8%
================================================================================
(1) For the six months ended April 30, 2000 (unaudited).
(2) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
(3) The Advisor has agreed to waive all of its fees for the six months ended
April 30, 2000 and the period ended October 31, 1999. In addition, the
Advisor also reimbursed expenses of $14,113 and $13,182 for the six months
ended April 30, 2000 and the period ended October 31, 1999, respectively.
If such fees were not waived and expenses not reimbursed, the per share
effect on net investment income and the expense ratios would have been as
follows:
Expense Ratios
Net Investment Income Without Fee Waivers and/or
Per Share Decreases Expense Reimbursements+
--------------------- --------------------------
2000 1999 2000 1999
-------- -------- -------- --------
Select Mid Cap Portfolio $0.09 $0.05 2.48% 5.35%
(4) As a result of a voluntary expense limitation, the expense ratios will not
exceed 0.95%.
* Amount represents less $0.01 per share.
++ 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 49
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31, except where noted:
Select Growth Portfolio 2000(1) 1999(2)
================================================================================
Net Asset Value, Beginning of Period $10.51 $10.00
--------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss)(3) (0.01) 0.01
Net realized and unrealized gain 1.88 0.50
--------------------------------------------------------------------------------
Total Income From Operations 1.87 0.51
--------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.01) --
--------------------------------------------------------------------------------
Total Distributions (0.01) --
--------------------------------------------------------------------------------
Net Asset Value, End of Period $12.37 $10.51
--------------------------------------------------------------------------------
Total Return++ 17.80% 5.10%
--------------------------------------------------------------------------------
Net Assets, End of Period (000s) $6,110 $5,274
--------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(3)(4) 0.95% 0.95%
Net investment income (loss) (0.15) 0.67
--------------------------------------------------------------------------------
Portfolio Turnover Rate 23% 6%
================================================================================
(1) For the six months ended April 30, 2000 (unaudited).
(2) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
(3) The Advisor has agreed to waive all of its fees for the six months ended
April 30, 2000 and the period ended October 31, 1999. In addition, the
Advisor also reimbursed expenses of $9,544 and $20,272 for the six months
ended April 30, 2000 and the period ended October 31, 1999, respectively.
If such fees were not waived and expenses not reimbursed, the per share
effect on net investment income and the expense ratios would have been as
follows:
Expense Ratios
Net Investment Income Without Fee Waivers and/or
Per Share Decreases Expense Reimbursements+
--------------------- --------------------------
2000 1999 2000 1999
-------- -------- -------- --------
Select Growth Portfolio $0.06 $0.05 2.03% 5.00%
(4) As a result of a voluntary expense limitation, the expense ratios will not
exceed 0.95%.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
50 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31, except where noted:
Select Growth and Income Portfolio 2000(1) 1999(2)
================================================================================
Net Asset Value, Beginning of Period $10.10 $10.00
--------------------------------------------------------------------------------
Income From Operations:
Net investment income(3) 0.02 0.01
Net realized and unrealized gain 0.57 0.09
--------------------------------------------------------------------------------
Total Income From Operations 0.59 0.10
--------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.02) --
--------------------------------------------------------------------------------
Total Distributions (0.02) --
--------------------------------------------------------------------------------
Net Asset Value, End of Period $10.67 $10.10
--------------------------------------------------------------------------------
Total Return++ 5.87% 1.00%
--------------------------------------------------------------------------------
Net Assets, End of Period (000s) $3,087 $3,045
--------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(3)(4) 0.95% 0.95%
Net investment income 0.39 0.69
--------------------------------------------------------------------------------
Portfolio Turnover Rate 7% 1%
================================================================================
(1) For the six months ended April 30, 2000 (unaudited).
(2) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
(3) The Advisor has agreed to waive all of its fees for the six months ended
April 30, 2000 and the period ended October 31, 1999. In addition, the
Advisor also reimbursed expenses of $22,209 and $12,636 for the six months
ended April 30, 2000 and the period ended October 31, 1999, respectively.
If such fees were not waived and expenses not reimbursed, the per share
effect on net investment income and the expense ratios would have been as
follows:
Expense Ratios
Net Investment Income Without Fee Waivers and/or
Per Share Decreases Expense Reimbursements+
--------------------- --------------------------
2000 1999 2000 1999
-------- -------- -------- --------
Select Growth and Income
Portfolio $0.12 $0.05 3.14% 5.22%
(4) As a result of a voluntary expense limitation, the expense ratios will not
exceed 0.95%.
++ 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 51
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period ended October 31, except where noted:
Select Government Portfolio 2000(1) 1999(2)
================================================================================
Net Asset Value, Beginning of Period $10.13 $10.00
--------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income(3) 0.26 0.05
Net realized and unrealized gain (loss) (0.21) 0.08
--------------------------------------------------------------------------------
Total Income From Operations 0.05 0.13
--------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.16) --
--------------------------------------------------------------------------------
Total Distributions (0.16) --
--------------------------------------------------------------------------------
Net Asset Value, End of Period $10.02 $10.13
--------------------------------------------------------------------------------
Total Return++ 0.53% 1.30%
--------------------------------------------------------------------------------
Net Assets, End of Period (000s) $5,078 $5,066
--------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(3)(4) 0.80% 0.80%
Net investment income 5.23 4.36
--------------------------------------------------------------------------------
Portfolio Turnover Rate 0% 0%
================================================================================
(1) For the six months ended April 30, 2000 (unaudited).
(2) For the period from September 15, 1999 (commencement of operations) to
October 31, 1999.
(3) The Advisor has agreed to waive all of its fees for the six months ended
April 30, 2000 and the period ended October 31, 1999. In addition, the
Advisor also reimbursed expenses of $20,901 and $14,291 for the six months
ended April 30, 2000 and the period ended October 31, 1999, respectively.
If such fees were not waived and expenses not reimbursed, the per share
effect on net investment income and the expense ratios would have been as
follows:
Expense Ratios
Net Investment Income Without Fee Waivers and/or
Per Share Decreases Expense Reimbursements+
--------------------- --------------------------
2000 1999 2000 1999
-------- -------- -------- --------
Select Government Portfolio $0.07 $0.04 2.24% 3.73%
(4) As a result of a voluntary expense limitation, the expense ratios will not
exceed 0.80%.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
52 2000 Semi-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, CFA
Vice President and Investment Officer
James E. Conroy
Vice President and Investment Officer
R. Jay Gerken, CFA
Vice President and Investment Officer
Lawrence B. Weissman, CFA
Vice President and Investment Officer
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Advisor and Administrator
SSB Citi Fund Management LLC
Distributor
CFBDS, Inc.
Custodian
PFPC Trust Company
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 53
<PAGE>
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