<PAGE>
- -----------------------
- -------------------------------------------------------------------------------
PIMCO
- -------------------------------------------------------------------------------
CADENCE CAPITAL APPRECIATION . NFJ SMALL CAP
VALUE . PARAMETRIC ENHANCED EQUITY . CADENCE
MICRO CAP GROWTH . COLUMBUS CIRCLE INVESTORS MID
CAP EQUITY . NFJ EQUITY INCOME . COLUMBUS CIRCLE
INVESTORS CORE EQUITY . CADENCE SMALL CAP
GROWTH . BLAIRLOGIE INTERNATIONAL ACTIVE
. BLAIRLOGIE EMERGING MARKETS . NFJ DIVERSIFIED
LOW P/E . BALANCED . CADENCE MID CAP GROWTH
- -------------------------------------------------------------------------------
- -----------------------
PIMCO FUNDS: EQUITY ADVISORS SERIES
ANNUAL REPORT . JUNE 30, 1996
<PAGE>
CONTENTS
Chairman's Message 1
About the Portfolio Managers 2
Investment Performance 3
Statement of Assets and Liabilities 16
Statement of Operations 18
Statement of Changes in Net Assets 20
Financial Highlights 24
Schedules of Investments
NFJ Equity Income Fund 30
NFJ Diversified Low P/E Fund 31
NFJ Small Cap Value Fund 32
Cadence Capital Appreciation Fund 34
Cadence Mid Cap Growth Fund 35
Cadence Micro Cap Growth Fund 37
Cadence Small Cap Growth Fund 38
Columbus Circle Investors
Core Equity Fund 40
Columbus Circle Investors
Mid Cap Equity Fund 41
Parametric Enhanced Equity Fund 42
Blairlogie Emerging Markets Fund 45
Blairlogie International Active Fund 47
Balanced Fund 49
Notes to Financial Statements 53
Report of Independent Accountants 59
Federal Income Tax Information 60
<PAGE>
CHAIRMAN'S MESSAGE
Dear Shareholder:
We are pleased to present the Annual Report for the PIMCO Funds: Equity Advisors
Series for the eight months ended June 30, 1996.
As we stated in the previous annual report for this fund family, then known as
the PIMCO Advisors Institutional Funds, operations and shareholder services of
these Funds were consolidated with those of the affiliated PIMCO Funds on
November 1, 1995. This change, which has enabled us to offer full exchange
privileges among the 26 equity and fixed income Funds available from the two
families has been very well received by shareholders.
The combination represents a significant step toward streamlining operations and
enhancing services to our shareholders. As part of this process, we have changed
the fiscal year end of the Funds. Consequently, you will receive a semi-annual
report dated December 31 and an annual report dated June 30 in the future.
Daily newspaper listings of your Funds' performance now appear under the heading
"PIMCO Funds." Please note that these Funds are intended for institutional
investors, including 401(k) plans. The affiliated "PIMCO Advisors Funds" family,
which many newspapers list in an adjoining space, is comprised of funds
distributed to individuals through stockbrokers and other financial advisors.
Our Funds benefited from a strong bull market during the eight-month period
which this report covers. In addition, we are pleased to report that four of our
Funds have received Four-Star ratings from Morningstar,* based on performance
comparisons with other funds with similar investment objectives. Details of the
performance of each of our Funds during this period appear on the following
pages.
Within a few months, we will be offering you up-to-date information about the
Funds and your account toll-free around the clock. Information available 24
hours a day will include net asset value and dividend information, investment
performance, recent transaction history and account balances. We will send you
more information about this new service as soon as it is available.
Thank you for your continued investment in the PIMCO Funds: Equity Advisors
Series. We very much value the confidence you and other investors have placed in
us. Should you have any questions or desire further information about these
Funds or our other affiliated Funds, please call us at (800) 927-4648.
Sincerely,
/s/ William Cvengros
William D. Cvengros
Chairman of the Board
August 20, 1996
*Not all of the Funds received Four-Star ratings from Morningstar.
1
<PAGE>
ABOUT THE PORTFOLIO MANAGERS
Blairlogie Capital Management
Blairlogie's investment professionals have established a methodology that
applies fundamental valuation criteria first to country allocation, then to
security selection, with the objective of adding value over time at a low level
of portfolio risk. A disciplined selection process is applied to both developed
and emerging countries. Systematic screening identifies when markets become
either relatively cheap or overvalued, which results in raising or lowering the
weighting in each market. The stock selection process focuses on a variety of
quality and value factors. Sell decisions are influenced by reallocation of
country weights and changes in a stock's relative rank.
Cadence Capital Management
All portfolios from large to medium to small to micro capitalizations are
managed using a screening process developed in the mid-1970's which applies five
distinct growth and valuation screens to the stock universe. The process
identifies companies with high relative earnings growth, improving
profitability, strong earnings momentum, potentially high future earnings growth
and attractive valuations. Continuous monitoring of portfolios quickly
identifies stocks to be sold. All portfolios are broad-based with up to 100
stocks and remain fully invested to assure participation in rising equity
markets.
Columbus Circle Investors
The firm's investment philosophy is based on the premise that companies doing
better than expected will have rising securities prices, or "Positive Momentum &
Positive Surprise." This discipline adds stocks of growing companies that exceed
investors' expectations, and sells or avoids those that fall short of those
expectations.
NFJ Investment Group
NFJ Investment Group is a value-oriented equity manager specializing in a
diversified, low price-earnings (P/E) approach. Developed by the firm's managing
directors in the mid-1970's, this approach is based on research showing that
portfolios of low P/E stocks have consistently outperformed market indexes over
the long term. The firm screens more than 2,000 stocks in 55 industry groups to
find the lowest P/E, high-yield stocks, then analyzes candidates for earnings,
quality and relative price momentum. Portfolios are normally fully invested,
equally weighted and rebalanced quarterly.
Pacific Investment Management Company
Pacific Investment Management's fixed income philosophy embodies three key
principles:
. Major shifts in portfolio strategy are driven by longer-term, or secular,
trends as opposed to short-term gyrations in interest rates;
. Consistent investment performance is achieved by avoiding extreme swings in
maturity and duration of a portfolio;
. An emphasis is placed on adding value through advanced tools such as futures,
options and volatility analysis as well as through adjustments to traditional
variables such as sector, coupon and quality.
Parametric Portfolio Associates
To enhance benchmark returns, historical analysis is used to identify a group of
stocks that have the highest probability of delivering superior returns in both
up and down markets. Stocks are reweighted or eliminated from a benchmark based
on their past 60 months of performance. The result is a portfolio that has
index-like characteristics with volatility no greater than that of the selected
benchmark. To control risk, economic sectors in portfolios are kept similar to
benchmark weights.
2
<PAGE>
NFJ EQUITY INCOME FUND
Portfolio Manager: NFJ Investment Group Dallas, Texas
Investment Objectives and Primary Investments:
Seeks current income as a primary investment objective, and long-term growth of
capital as a secondary objective; invests primarily in common stocks with below-
average price to earnings ratios and higher dividend yields relative to their
industry groups.
<TABLE>
<CAPTION>
Annualized Returns Ended 6/30/96
- ----------------------------------------------------
Since
1 Yr. 3 Yrs. 5 Yrs. Inception
<S> <C> <C> <C> <C>
NFJ Equity
Income Fund
Inst. Class (%) 24.86 13.92 15.21 14.89
- ----------------------------------------------------
NFJ Equity
Income Fund
Admin. Class (%) 24.47 n/a n/a 27.08
- ----------------------------------------------------
S&P 500
Index (%) 26.12 17.25 15.73 n/a
- ----------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
NFJ EQUITY
INCOME FUND S&P 500 INDEX
<S> <C> <C>
4/01/91 $200,000 $200,000
6/30/91 $205,385 $199,586
6/30/92 $245,657 $226,465
6/30/93 $281,939 $257,278
6/30/94 $281,203 $260,695
6/30/95 $333,815 $328,749
6/30/96 $416,797 $414,612
</TABLE>
The line graph above assumes the investment of $200,000 on 4/1/91, the first
full month following the Fund's Institutional Class inception on 3/8/91,
compared with the S&P 500 Index, an unmanaged market index. The performance of
the Administrative Class from inception on 11/30/94 (shown at left), reflects
the payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. Past performance is not an indication of future results.
. Relative performance was helped by good stock selection across several
sectors.
. Cyclical and financial stocks, with their improved relative performance,
were overweighted in the Fund, enhancing returns.
. The yield factor had been a drag on performance, but turned around
to become a positive influence.
. The underperformance of technology stocks during the fourth quarter of 1995
helped the Fund due to its considerably below-index weighting in this
sector.
. Emphasis on mid cap issues was a setback in a market that rewarded large
and small cap stocks.
Portfolio Composition
Top Ten Common Stocks
<TABLE>
<CAPTION>
% of Total
Company Investments
- -----------------------------------------------------
<S> <C>
Northrop Grumman Corp. 4.0%
- -----------------------------------------------------
Ultramar Corp. 3.8%
- -----------------------------------------------------
Bear Stearns Cos. 3.8%
- -----------------------------------------------------
Phelps Dodge Corp. 3.8%
- -----------------------------------------------------
Springs Industries, Inc. 2.2%
- -----------------------------------------------------
Pharmacia & Upjohn, Inc. 2.1%
- -----------------------------------------------------
Pacific Gas & Electric 2.1%
- -----------------------------------------------------
J.C. Penny Co., Inc. 2.1%
- -----------------------------------------------------
NICOR, Inc. 2.1%
- -----------------------------------------------------
PHH Corp. 2.1%
- -----------------------------------------------------
Top Ten Total 28.1%
</TABLE>
Industry Classifications as a Percent of Total Investments
<TABLE>
<S> <C>
Consumer Discretionary 16.2%
- -----------------------------------------------------
Consumer Staples 7.9%
- -----------------------------------------------------
Energy 9.8%
- -----------------------------------------------------
Financial & Business Services 19.9%
- -----------------------------------------------------
Health Care 8.1%
- -----------------------------------------------------
Materials & Processing 9.7%
- -----------------------------------------------------
Utilities 20.4%
- -----------------------------------------------------
Other 8.0%
- -----------------------------------------------------
</TABLE>
3
<PAGE>
NFJ DIVERSIFIED LOW P/E FUND
Portfolio Manager:
NFJ Investment Group
Dallas, Texas
Investment Objective and Primary Investments:
Seeks long-term growth of capital and income; invests primarily in common stocks
with below-average price to earnings ratios relative to their industry groups.
<TABLE>
<CAPTION>
Annualized Returns Ended 6/30/96
- -----------------------------------------------------------
Since
1Yr. 3Yrs. 4Yrs. Inception
<S> <C> <C> <C> <C>
NFJ Diversified
Low P/E
Fund (%) 26.66 16.58 17.24 15.71
- -----------------------------------------------------------
S&P 500
Index (%) 26.12 17.25 n/a n/a
- -----------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
NFJ DIVER- S&P 500
SIFIED LOW INDEX
P/E FUND
<S> <C> <C>
1/01/92 $200,000 $200,000
6/30/92 $202,697 $198,726
6/30/93 $241,679 $225,765
6/30/94 $247,669 $228,763
6/30/95 $302,310 $288,481
6/30/96 $382,897 $363,827
</TABLE>
The line graph above assumes the investment of $200,000 on 1/1/92, the first
full month following the Fund's Institutional Class inception on 12/30/91,
compared with the S&P 500 Index, an unmanaged market index. Past performance is
not an indication of future results.
. Cyclical and financial stocks, with their improved relative performance, were
overweighted in the Fund, enhancing returns.
. The underperformance of technology stocks during the fourth quarter of 1995
helped the Fund due to its considerably below-index weighting in this sector.
. Emphasis on mid cap issues was a setback in a market that rewarded large and
small cap stocks.
. The yield factor had been a drag on performance, but turned around to become
a positive influence.
Portfolio Composition
<TABLE>
<CAPTION>
Top Ten Common Stocks
% of Total
Company Investments
- -----------------------------------------------------
<S> <C>
Sprint Corp. 2.7%
- -----------------------------------------------------
PHH Corp. 2.7%
- -----------------------------------------------------
Pharmacia & Upjohn, Inc. 2.6%
- -----------------------------------------------------
Amoco Corp. 2.6%
- -----------------------------------------------------
Repsol 2.6%
- -----------------------------------------------------
American Home Products 2.6%
- -----------------------------------------------------
Anheuser Busch 2.6%
- -----------------------------------------------------
Maytag Corp. 2.5%
- -----------------------------------------------------
Chase Manhattan Corp. 2.5%
- -----------------------------------------------------
Phillip Morris Co., Inc. 2.5%
- -----------------------------------------------------
Top Ten Total 25.9%
</TABLE>
Industry Classifications as a Percent of Total Investments
<TABLE>
<S> <C>
Consumer Discretionary 14.9%
- -----------------------------------------------------
Consumer Staples 10.0%
- -----------------------------------------------------
Energy 10.3%
- -----------------------------------------------------
Financial & Business Services 13.8%
- -----------------------------------------------------
Health Care 8.5%
- -----------------------------------------------------
Utilities 9.8%
- -----------------------------------------------------
Short-Term Instruments 11.9%
- -----------------------------------------------------
Other 20.8%
- -----------------------------------------------------
</TABLE>
4
<PAGE>
NFJ SMALL CAP VALUE FUND
PORTFOLIO MANAGER:
NFJ Investment Group
Dallas, Texas
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks long-term growth of capital and income; invests primarily in common stocks
of companies with market capitalizations between $50 million and $1 billion and
below-average price to earnings ratios relative to their industry groups.
<TABLE>
<CAPTION>
Annualized Returns Ended 6/30/96
- -----------------------------------------------------------
Since
1Yr. 3Yrs. 4Yrs. Inception
--------- -------- ------ ----------
<S> <C> <C> <C> <C>
NFJ Small Cap
Value Fund
Inst. Class (%) 21.99 13.05 14.97 14.83
- -----------------------------------------------------------
Russell 2000
Index (%) 23.89 15.82 n/a n/a
- -----------------------------------------------------------
<CAPTION>
Cumulative Returns Ended 6/30/96
- -----------------------------------------------------------
Since
1Yr. 3Yrs. 4Yrs. Inception
--------- -------- ------ ----------
<S> <C> <C> <C> <C>
NFJ Small Cap
Value Fund
Admin. Class (%) n/a n/a n/a 15.64
- -----------------------------------------------------------
Russell 2000
Index (%) n/a n/a n/a n/a
- -----------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
NFJ SMALL
CAP VALUE RUSSELL
FUND 2000 INDEX
<S> <C> <C>
10/1/91 $200,000 $200,000
6/30/92 $220,610 $211,801
6/30/93 $266,759 $266,751
6/30/94 $273,205 $278,513
6/30/95 $315,931 $334,417
6/30/96 $385,398 $414,454
</TABLE>
The line graph above assumes the investment of $200,000 on 10/1/91, the Fund's
Institutional Class inception date, compared with the Russell 2000 Index, an
unmanaged market index. The performance of the Administrative Class from
inception on 11/1/95 (shown at left), reflects the payment of a service fee in
an amount not to exceed 0.25% on an annualized basis. Past performance is not an
indication of future results.
. The underperformance of technology stocks during the fourth quarter of 1995
helped the Fund due to its considerably below-index weighting in this sector.
. Cyclical and financial stocks, with their improved relative performance, were
overweighted in the Fund, enhancing returns.
. The Fund has less volatility than the Russell 2000 Index. The value oriented
yield stocks in the Fund fared relatively better than the Russell Small Cap
index during the recent small cap correction.
. Since each stock in the NFJ Small Cap Value Fund pays a dividend, our higher
yield factor was a positive influence on performance during the recent
correction.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top Ten Common Stocks
% of Total
Company Investments
- -----------------------------------------------------
<S> <C>
Webb Corp. 1.1%
- -----------------------------------------------------
Alex Brown, Inc. 1.1%
- -----------------------------------------------------
McGrath Rentcorp. 1.1%
- -----------------------------------------------------
Commonwealth Energy System 1.1%
- -----------------------------------------------------
Amcast Industrial Corp. 1.1%
- -----------------------------------------------------
Orion Capital Corp. 1.0%
- -----------------------------------------------------
MTS Systems Corp. 1.0%
- -----------------------------------------------------
First Financial Corp. Wisconsin 1.0%
- -----------------------------------------------------
Firstbank Puerto Rico 1.0%
- -----------------------------------------------------
Fedders USA, Inc. 1.0%
- -----------------------------------------------------
Top Ten Total 10.5%
</TABLE>
Industry Classifications as a Percent of Total Investments
<TABLE>
<S> <C>
Capital Goods 10.5%
- -----------------------------------------------------
Consumer Discretionary 10.5%
- -----------------------------------------------------
Consumer Staples 7.6%
- -----------------------------------------------------
Financial & Business Services 22.1%
- -----------------------------------------------------
Materials & Processing 16.2%
- -----------------------------------------------------
Utilities 7.8%
- -----------------------------------------------------
Other 25.3%
- -----------------------------------------------------
</TABLE>
5
<PAGE>
CADENCE CAPITAL APPRECIATION FUND
PORTFOLIO MANAGER:
Cadence Capital Management
Boston, Massachusetts
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks growth of capital; invests primarily in common stocks of companies with
market capitalizations of at least $100 million that have improving fundamentals
and whose stock is reasonably valued by the market.
<TABLE>
<CAPTION>
Annualized Returns Ended 6/30/96
- -----------------------------------------------------------
Since
1Yr. 3Yrs. 5Yrs. Inception
----- ----- ----- ---------
<S> <C> <C> <C> <C>
Cadence Capital
Appreciation
Fund (%) 24.67 15.85 18.20 16.74
- -----------------------------------------------------------
S&P 500
Index (%) 26.12 17.25 15.73 n/a
- -----------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
CADENCE CAPITAL
APPRECIATION
FUND S&P 500 INDEX
<S> <C> <C>
4/01/91 $200,000 $200,000
6/30/91 $192,802 $199,586
6/30/92 $225,861 $226,465
6/30/93 $286,138 $257,278
6/30/94 $287,665 $260,695
6/30/95 $356,829 $328,749
6/30/96 $444,846 $414,612
</TABLE>
The line graph above assumes the investment of $200,000 on 4/1/91, the first
full month following the Fund's Institutional Class inception on 3/8/91,
compared with the S&P 500 Index, an unmanaged market index. Past performance is
not an indication of future results.
. Technology stocks came under severe pressure in the fourth quarter of 1995,
weakening investment results.
. The Fund's best-performing stocks for the period were in financial services,
health care, and consumer services.
. Several financial services holdings benefited from merger-related activity.
. The Fund's health care holdings were led by HBO & Co., which provides
computer systems and services to hospitals; Guidant and Medtronic, both of
which address cardiovascular disease, and Schering-Plough, a leading
pharmaceutical company.
PORTFOLIO COMPOSITION
<TABLE>
<CAPTION>
Top Ten Common Stocks
% of Total
Company Investments
- -----------------------------------------------------
<S> <C>
American Home Products 1.9%
- -----------------------------------------------------
Andrew Corp. 1.8%
- -----------------------------------------------------
Schering-Plough 1.8%
- -----------------------------------------------------
Nike, Inc. 1.8%
- -----------------------------------------------------
Mattel, Inc. 1.7%
- -----------------------------------------------------
HBO & Co. 1.7%
- -----------------------------------------------------
U.S. Robotics Corp. 1.6%
- -----------------------------------------------------
United Technologies 1.6%
- -----------------------------------------------------
La Quinta Inns, Inc. 1.6%
- -----------------------------------------------------
Allied Signal, Inc. 1.6%
- -----------------------------------------------------
Top Ten Total 17.1%
</TABLE>
Industry Classifications as a Percent of Total Investments
<TABLE>
<S> <C>
Capital Goods 7.5%
- -----------------------------------------------------
Consumer Discretionary 12.8%
- -----------------------------------------------------
Financial & Business Services 24.6%
- -----------------------------------------------------
Health Care 12.2%
- -----------------------------------------------------
Technology 9.0%
- -----------------------------------------------------
Utilities 7.2%
- -----------------------------------------------------
Short-Term Instruments 10.7%
- -----------------------------------------------------
Other 16.0%
- -----------------------------------------------------
</TABLE>
6
<PAGE>
CADENCE MID CAP GROWTH FUND
PORTFOLIO MANAGER:
Cadence Capital Management
Boston, Massachusetts
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks growth of capital; invests primarily in common stocks of companies with
market capitalizations in excess of $500 million that have improving
fundamentals and whose stock is reasonably valued by the market.
<TABLE>
<CAPTION>
Annualized Returns Ended 6/30/96
- -----------------------------------------------------------
Since
1Yr. 3Yrs. 4Yrs. Inception
----- ----- ------ ---------
<S> <C> <C> <C> <C>
Cadence Mid Cap
Growth Fund
Inst. Class (%) 21.56 15.13 17.71 16.10
- -----------------------------------------------------------
Cadence Mid Cap
Growth Fund
Admin. Class (%) 21.25 n/a n/a 29.60
- -----------------------------------------------------------
S&P MidCap
Index (%) 21.58 14.13 n/a n/a
- -----------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
CADENCE MID
CAP GROWTH S&P MidCap
FUND INDEX
<S> <C> <C>
9/01/91 $200,000 $200,000
6/30/92 $215,126 $215,802
6/30/93 $270,638 $264,758
6/30/94 $268,017 $264,642
6/30/95 $339,767 $323,803
6/30/96 $413,028 $393,578
</TABLE>
The line graph above assumes the investment of $200,000 on 9/1/91, the first
full month following the Fund's Institutional Class inception on 8/26/91,
compared with the S&P MidCap Index, an unmanaged market index. The performance
of the Administrative Class from inception on 11/30/94 (shown at left), reflects
the payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. Past performance is not an indication of future results.
. Technology stocks came under severe pressure in the fourth quarter of 1995,
weakening investment results.
. The Fund's best-performing holdings were in health care, financial services,
and consumer services.
. HBO & Co., Guidant, Medtronic, and Health Management Associates set the pace
for the Fund's health care stocks. Financial Services was driven by
attractive valuations, strong earnings growth, and actual results that
exceeded Wall Street expectations.
. Other strong performing holdings included Callaway Golf and Mattel in the
consumer goods area, Kroger and Tiffany in consumer services, and Loral, a
defense electronics company acquired by Lockheed Martin.
PORTFOLIO COMPOSITION
<TABLE>
<CAPTION>
Top Ten Common Stocks
% of Total
Company Investments
- -----------------------------------------------------
<S> <C>
Callaway Golf Co. 1.9%
- -----------------------------------------------------
Raychem Corp. 1.7%
- -----------------------------------------------------
First Brands Corp. 1.7%
- -----------------------------------------------------
America West Airlines 1.6%
- -----------------------------------------------------
Parametric Technology Corp. 1.6%
- -----------------------------------------------------
Mattel, Inc. 1.6%
- -----------------------------------------------------
Praxair, Inc. 1.6%
- -----------------------------------------------------
HBO & Co. 1.6%
- -----------------------------------------------------
Cytec Industries, Inc. 1.6%
- -----------------------------------------------------
McDonnell Douglas 1.6%
- -----------------------------------------------------
Top Ten Total 16.5%
</TABLE>
Industry Classifications as a Percent of Total Investments
<TABLE>
<S> <C>
Consumer Discretionary 11.0%
- -----------------------------------------------------
Capital Goods 11.9%
- -----------------------------------------------------
Financial & Business Services 30.9%
- -----------------------------------------------------
Health Care 11.1%
- -----------------------------------------------------
Materials & Processing 5.7%
- -----------------------------------------------------
Technology 10.0%
- -----------------------------------------------------
Short-Term Instruments 5.1%
- -----------------------------------------------------
Other 14.3%
- -----------------------------------------------------
</TABLE>
7
<PAGE>
CADENCE MICRO CAP GROWTH FUND
PORTFOLIO MANAGER:
Cadence Capital Management
Boston, Massachusetts
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks long-term growth of capital; invests primarily in common stocks of
companies with market capitalizations of less than $100 million that have
improving fundamentals and whose stock is reasonably valued by the market.
Annualized Returns Ended 6/30/96
<TABLE>
<CAPTION>
- -----------------------------------------------------------
Since
1Yr. 3Yrs. 5Yrs. Inception
<S> <C> <C> <C> <C>
Cadence Micro
Cap Growth Fund
Inst. Class (%) 36.19 23.65 n/a 23.52
- -----------------------------------------------------------
Russell 2000
Index (%) 23.89 15.82 n/a n/a
- -----------------------------------------------------------
<CAPTION>
Cumulative Returns Ended 6/30/96
- -----------------------------------------------------------
Since
1Yr. 3Yrs. 5Yrs. Inception
<S> <C> <C> <C> <C>
Cadence Micro
Cap. Growth Fund
Admin. Class (%) n/a n/a n/a 10.34
- -----------------------------------------------------------
Russell 2000
Index (%) n/a n/a n/a n/a
- -----------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
CADENCE MICRO
CAP GROWTH RUSSELL
FUND 2000 INDEX
<S> <C> <C>
7/01/93 $200,000 $200,000
6/30/94 $219,510 $208,818
6/30/95 $277,646 $250,733
6/30/96 $378,117 $310,741
</TABLE>
The line graph above assumes the investment of $200,000 on 7/1/93, the first
full month following the Fund's Institutional Class inception on 6/25/93,
compared with the Russell 2000 Index, an unmanaged market index. The performance
of the Administrative Class from inception on 4/1/96 (shown at left), reflects
the payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. Past performance is not an indication of future results.
. The Fund's strength was broad-based, with the best performing stocks coming
from many different industries.
. Gaming stocks, such as Anchor Gaming and Penn National Gaming, were among the
best performers for the year.
. Consumer staples were also strong, led by Rexall Sundown, a leader in the
manufacture and distribution of vitamins.
. Financial stocks made a strong contribution to performance, including Aames
Financial and Charter Bancshares.
PORTFOLIO COMPOSITION
<TABLE>
<CAPTION>
Top Ten Common Stocks
% of Total
Company Investments
- -----------------------------------------------------
<S> <C>
United Video Satellite 2.4%
- -----------------------------------------------------
Rexall Sundown, Inc. 2.3%
- -----------------------------------------------------
STB Systems, Inc. 2.3%
- -----------------------------------------------------
TCSI Corp. 2.3%
- -----------------------------------------------------
Watsco, Inc. 'A' 2.2%
- -----------------------------------------------------
Castle (A.M.) & Co. 2.2%
- -----------------------------------------------------
Penn National Gaming, Inc. 2.0%
- -----------------------------------------------------
Health Images, Inc. 2.0%
- -----------------------------------------------------
Culp, Inc. 2.0%
- -----------------------------------------------------
Ciber, Inc. 1.9%
- -----------------------------------------------------
Top Ten Total 21.6%
</TABLE>
Industry Classifications as a Percent of Total Investments
<TABLE>
<S> <C>
Capital Goods 9.1%
- -----------------------------------------------------
Consumer Discretionary 8.0%
- -----------------------------------------------------
Consumer Services 19.5%
- -----------------------------------------------------
Consumer Staples 5.3%
- -----------------------------------------------------
Financial & Business Services 14.8%
- -----------------------------------------------------
Health Care 11.2%
- -----------------------------------------------------
Technology 19.2%
- -----------------------------------------------------
Other 12.9%
- -----------------------------------------------------
</TABLE>
8
<PAGE>
CADENCE SMALL CAP GROWTH FUND
Portfolio Manager:
Cadence Capital Management
Boston, Massachusetts
Investment Objective and Primary Investments:
Seeks growth of capital; invests primarily in common stocks of companies with
market capitalizations between $50 million and $500 million that have improving
fundamentals and whose stock is reasonably valued by the market.
Annualized Returns Ended 6/30/96
<TABLE>
<CAPTION>
- -----------------------------------------------------------
Since
1Yr. 3Yrs. 5Yrs. Inception
<S> <C> <C> <C> <C>
Cadence Small
Cap Growth Fund
Inst. Class (%) 17.33 12.24 18.11 22.47
- -----------------------------------------------------------
Russell 2000
Index (%) 23.89 15.82 17.52 n/a
- -----------------------------------------------------------
<CAPTION>
Cumulative Returns Ended 6/30/96
- -----------------------------------------------------------
Since
1Yr. 3Yrs. 5Yrs. Inception
<S> <C> <C> <C> <C>
Cadence Small
Cap. Growth Fund
Admins. Class (%) n/a n/a n/a 2.88
- -----------------------------------------------------------
Russell 2000
Index (%) n/a n/a n/a n/a
- -----------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
CADENCE
SMALL CAP RUSSELL
GROWTH FUND 2000 INDEX
<S> <C> <C>
2/01/91 $200,000 $200,000
6/30/91 $230,647 $234,339
6/30/92 $267,777 $268,408
6/30/93 $374,976 $338,044
6/30/94 $385,279 $352,949
6/30/95 $451,848 $423,795
6/30/96 $530,138 $525,222
</TABLE>
The line graph above assumes the investment of $200,000 on 2/1/91, the first
full month following the Fund's Institutional Class inception on 1/7/91,
compared with the Russell 2000 Index, an unmanaged market index. The performance
of the Administrative Class from inception on 9/27/95 (shown at left), reflects
the payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. Past performance is not an indication of future results.
. Technology stocks came under severe pressure in the fourth quarter of 1995,
weakening investment results.
. While it was difficult to offset the negative impact of technology, the
Fund's best-performing stocks came from many different industries and
sectors.
. Health care provided strong returns across such holdings as Orthodontic
Centers of America, Physician Reliance Network, Rotech Medical, and Universal
Health Services.
. Financial Services, which averaged around 30% of equities over the year, was
a source of strength, led by American Travellers Corp., Executive Risk, HCC
Insurance Holdings, Money Store, and Penncorp Financial, all of which gained
40% or more for the period.
Portfolio Composition
<TABLE>
<CAPTION>
Top Ten Common Stocks
% of Total
Company Investments
- -----------------------------------------------------
<S> <C>
Mueller Industries, Inc. 2.2%
- -----------------------------------------------------
United Waste Systems, Inc. 2.2%
- -----------------------------------------------------
Universal Health Services, Inc. 2.0%
- -----------------------------------------------------
Methode Electronics 'A' 1.9%
- -----------------------------------------------------
Roper Industries, Inc. 1.9%
- -----------------------------------------------------
Rational Software Corp. 1.9%
- -----------------------------------------------------
K2, Inc. 1.8%
- -----------------------------------------------------
Allied Group, Inc. 1.7%
- -----------------------------------------------------
IDEX Corp. 1.7%
- -----------------------------------------------------
American Travellers Co. 1.7%
- -----------------------------------------------------
Top Ten Total 19.0%
</TABLE>
Industry Classifications as a Percent of Total Investments
<TABLE>
<S> <C>
Capital Goods 15.7%
- -----------------------------------------------------
Consumer Services 6.9%
- -----------------------------------------------------
Financial & Business Services 30.5%
- -----------------------------------------------------
Health Care 13.2%
- -----------------------------------------------------
Materials & Processing 12.8%
- -----------------------------------------------------
Technology 10.2%
- -----------------------------------------------------
Other 10.7%
- -----------------------------------------------------
</TABLE>
9
<PAGE>
COLUMBUS CIRCLE INVESTORS CORE EQUITY FUND
Portfolio Manager:
Columbus Circle Investors
Stamford, Connecticut
Investment Objectives and Primary Investments:
Seeks long-term growth of capital, with income as a secondary objective; invests
primarily in common stocks of companies with market capitalizations in excess of
$3 billion.
Annualized Returns Ended 6/30/96
<TABLE>
<CAPTION>
- -----------------------------------------------------------
Since
1Yr. 3Yrs. 5Yrs. Inception
<S> <C> <C> <C> <C>
Columbus Circle
Investors Core
Equity Fund
Inst. Class (%) 18.02 n/a n/a 25.06
- -----------------------------------------------------------
Columbus Circle
Investors Core
Equity Fund
Admin. Class (%) 17.81 n/a n/a 19.87
- -----------------------------------------------------------
S&P 500
Index (%) 26.12 n/a n/a n/a
- -----------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
COLUMBUS CIRCLE
INVESTORS CORE
EQUITY FUND S&P 500 INDEX
<S> <C> <C>
1/01/95 $200,000 $200,000
6/30/95 $236,844 $240,390
6/30/96 $279,520 $303,175
</TABLE>
The line graph above assumes the investment of $200,000 on 1/1/95, the first
full month following the Fund's Institutional Class inception on 12/28/94,
compared with the S&P 500 Index, an unmanaged market index. The performance of
the Administrative Class from inception on 5/31/95 (shown at left), reflects the
payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. Past performance is not an indication of future results.
. The portfolio manager's investment process tends to avoid utilities, which
was a drag on performance, as this group was a strong performer over the last
eight months.
. The Fund's significant overweighting of the dominant technology sector
(relative to the S&P 500), combined with good stock selection, contributed to
performance.
. Holdings in companies that provide products and services to consumers have
generally been among the Fund's best performers.
Portfolio Composition
<TABLE>
<CAPTION>
Top Ten Common Stocks
% of Total
Company Investments
- -----------------------------------------------------
<S> <C>
Microsoft Corp. 4.0%
- -----------------------------------------------------
Johnson & Johnson 3.8%
- -----------------------------------------------------
Pepsico 3.4%
- -----------------------------------------------------
Boeing 3.4%
- -----------------------------------------------------
Schlumberger Limited 3.1%
- -----------------------------------------------------
Cisco Systems 3.1%
- -----------------------------------------------------
Columbia HCA Healthcare Corp. 3.1%
- -----------------------------------------------------
Intel Corp. 3.0%
- -----------------------------------------------------
Chase Manhattan Corp. 2.7%
- -----------------------------------------------------
American Home Products 2.6%
- -----------------------------------------------------
Top Ten Total 32.2%
</TABLE>
Industry Classifications as a Percent of Total Investments
<TABLE>
<S> <C>
Technology 38.1%
- -----------------------------------------------------
Consumer Staples 6.0%
- -----------------------------------------------------
Energy 4.7%
- -----------------------------------------------------
Financial & Business Services 8.6%
- -----------------------------------------------------
Health Care 11.4%
- -----------------------------------------------------
Consumer Discretionary 13.0%
- -----------------------------------------------------
Utilities 4.6%
- -----------------------------------------------------
Other 13.6%
- -----------------------------------------------------
</TABLE>
10
<PAGE>
COLUMBUS CIRCLE INVESTORS MID CAP EQUITY FUND
PORTFOLIO MANAGER:
Columbus Circle Investors
Stamford, Connecticut
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks long-term growth of capital; invests primarily in common stocks of
companies with market capitalizations between $800 million and $3 billion.
Annualized Returns Ended 6/30/96
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
Since
1 Yr. 3 Yrs. 5 Yrs. Inception
<S> <C> <C> <C> <C>
Columbus
Circle Investors
Mid Cap
Equity Fund (%) 29.04 n/a n/a 31.57
- ----------------------------------------------------------------------
S&P MidCap
Index (%) 21.58 n/a n/a n/a
- ----------------------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
COLUMBUS CIRCLE
INVESTORS MID CAP S&P MIDCAP
EQUITY FUND INDEX
<S> <C> <C>
1/01/95 $200,000 $200,000
6/30/95 $234,000 $235,260
6/30/96 $301,947 $285,955
</TABLE>
The line graph above assumes the investment of $200,000 on 1/1/95, the first
full month following the Fund's Institutional Class inception on 12/28/94,
compared with the S&P MidCap Index, an unmanaged market index. Past performance
is not an indication of future results.
. Technology holdings were a meaningful contributor to the Fund's performance.
To reduce the risk of overweighting, the Fund's holdings were diversified
across a variety of technology-related themes.
. Another group that has enhanced performance are those companies that we
classify as "special situations." Special situation stocks are eclectic
holdings with unique story drivers detached from economic or sector gyrations.
Examples of holdings in this group are HFS, USA Waste Services, and Callaway
Golf.
. Although the energy sector makes up less than 10% of the Fund, new holdings
in 1996 have already performed well and offer further upside potential.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top Ten Common Stocks
% of Total
Company Investments
- --------------------------------------------
<S> <C>
HFS, Inc. 4.6%
- --------------------------------------------
Gucci, Inc. 3.3%
- --------------------------------------------
Guidant Corp. 3.3%
- --------------------------------------------
Healthsouth Corp. 3.1%
- --------------------------------------------
Diebold, Inc. 2.9%
- --------------------------------------------
APAC Teleservices, Inc. 2.8%
- --------------------------------------------
Newbridge Networks Corp. 2.8%
- --------------------------------------------
Tidewater, Inc. 2.6%
- --------------------------------------------
Raychem Corp. 2.6%
- --------------------------------------------
Everest Reinsurance Holdings 2.6%
- --------------------------------------------
Top Ten Total 30.6%
</TABLE>
Industry Classifications
as a Percent of Total Investments
<TABLE>
<S> <C>
Capital Goods 5.0%
- --------------------------------------------
Consumer Discretionary 24.8%
- --------------------------------------------
Consumer Services 22.4%
- --------------------------------------------
Energy 5.4%
- --------------------------------------------
Health Care 7.6%
- --------------------------------------------
Technology 22.3%
- --------------------------------------------
Transportation 5.4%
- --------------------------------------------
Other 7.1%
- --------------------------------------------
</TABLE>
11
<PAGE>
PARAMETRIC ENHANCED EQUITY FUND
Portfolio Manager:
Parametric Portfolio Associates
Seattle, Washington
Investment Objective and Primary Investments:
Seeks to provide a total return which equals or exceeds total return performance
of the Standard & Poor's 500 Composite Stock Price Index; invests in common
stocks represented in that Index.
Annualized Returns Ended 6/30/96
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
Since
1 Yr. 3 Yrs. 5 Yrs. Inception
<S> <C> <C> <C> <C>
Parametric
Enhanced Equity
Fund (%) 22.72 14.27 13.45 12.82
- ----------------------------------------------------------------------
S&P 500
Index (%) 26.12 17.25 15.73 n/a
- ----------------------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
PARAMETRIC
ENHANCED S&P 500
EQUITY FUND INDEX
<S> <C> <C>
3/01/91 $200,000 $200,000
6/30/91 $203,003 $204,316
6/30/92 $227,564 $231,833
6/30/93 $255,734 $263,376
6/30/94 $252,014 $266,873
6/30/95 $310,922 $336,541
6/30/96 $381,557 $424,438
</TABLE>
The line graph above assumes the investment of $200,000 on 3/1/91, the first
full month following the Fund's Institutional Class inception on 2/11/91,
compared with the S&P 500 Index, an unmanaged market index. Past performance is
not an indication of future results.
. Best-performing index sectors were capital goods (+30.5%), retail (+26.9%) and
energy (+23.1%). The fund maintained an above-index weight in retail but was
below-index weight in capital goods and energy, which hindered performance.
. Stock selection had the largest impact on performance. The Fund outperformed
in seven economic sectors but fell behind the index in eight.
. The Fund's technology selections trailed those of the index which, combined
with an overweighting, were a significant drag on performance.
. On the positive side, the Fund's transportation stocks were up 21% compared
to the 11% return for the index sector.
- -------------------------------------------------------------------------------
Portfolio Composition
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top Ten Common Stocks
% of Total
Company Investments
- --------------------------------------------
<S> <C>
Chase Manhattan Corp. 1.6%
- --------------------------------------------
AT&T Corp. 1.6%
- --------------------------------------------
Merck & Co., Inc. 1.5%
- --------------------------------------------
Coca-Cola Co. 1.5%
- --------------------------------------------
Intel Corp. 1.4%
- --------------------------------------------
Federal National Mortgage Assn. 1.2%
- --------------------------------------------
Microsoft Corp. 1.2%
- --------------------------------------------
Exxon Corp. 1.2%
- --------------------------------------------
General Electric 1.2%
- --------------------------------------------
Citicorp 1.1%
- --------------------------------------------
Top Ten Total 13.5%
</TABLE>
Industry Classifications
as a Percent of Total Investments
<TABLE>
<S> <C>
Consumer Discretionary 15.2%
- --------------------------------------------
Consumer Staples 7.3%
- --------------------------------------------
Energy 6.3%
- --------------------------------------------
Financial & Business Services 17.9%
- --------------------------------------------
Health Care 10.5%
- --------------------------------------------
Technology 14.9%
- --------------------------------------------
Utilities 13.0%
- --------------------------------------------
Other 14.9%
- --------------------------------------------
</TABLE>
12
<PAGE>
BLAIRLOGIE EMERGING MARKETS FUND
Portfolio Manager:
Blairlogie Capital Management
Edinburgh, Scotland
Investment Objective and Primary Investments:
Seeks long-term growth of capital; invests primarily in common stocks of
companies located in emerging market countries.
Annualized Returns Ended 6/30/96
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
Since
1 Yr. 3 Yrs. 5 Yrs. Inception
<S> <C> <C> <C> <C>
Blairlogie Emerging
Markets Fund
Inst. Class (%) 7.70 11.16 n/a 11.41
- ----------------------------------------------------------------------
Blairlogie Emerging
Markets Fund
Admin. Class (%) 7.53 n/a n/a (12.95)
- ----------------------------------------------------------------------
MSCI Emerging
Markets Free
Index (%) 8.48 14.16 n/a n/a
- ----------------------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
BLAIRLOGIE
EMERGING
MARKETS
FUND MSCI INDEX
<S> <C> <C>
6/01/93 $200,000 $200,000
6/30/93 $203,000 $205,940
6/30/94 $289,114 $282,449
6/30/95 $258,900 $282,445
6/30/96 $278,841 $306,403
</TABLE>
The line graph above assumes the investment of $200,000 on 6/1/93, the Fund's
Institutional Class inception date, compared with the Morgan Stanley Capital
International (MSCI) Emerging Markets Free Index, an unmanaged market index of
emerging markets stocks. The performance of the Administrative Class from
inception on 11/1/94 (shown at left), reflects the payment of a service fee in
an amount not to exceed 0.25% on an annualized basis. Past performance is not an
indication of future results.
. Adverse stock selection in heavily-weighted Brazil was a significant drag on
relative performance.
. In Malaysia, an underperformance of the Fund's holdings was offset by a
below-index weight throughout the period.
. A positive for relative performance was Mexico, where solid stock selection
capitalized on an overweighting throughout the period.
. Despite a substantial underweighting in South Africa, holdings there more
than tripled the index's South African returns. Issue selection and a
greater-than-benchmark exposure led to significant underperformance in India.
Portfolio Composition
<TABLE>
<CAPTION>
Top Five Countries
% of Total
Country Investments
- --------------------------------------------
<S> <C>
Brazil 14.5%
- --------------------------------------------
Malaysia 13.3%
- --------------------------------------------
Mexico 11.4%
- --------------------------------------------
India 8.9%
- --------------------------------------------
South Africa 8.8%
- --------------------------------------------
Top Five Total 56.9%
</TABLE>
Industry Classification
as a Percent of Total Investments
<TABLE>
<S> <C>
Capital Goods 9.0%
- --------------------------------------------
Conglomerate 6.8%
- --------------------------------------------
Consumer Discretionary 10.7%
- --------------------------------------------
Consumer Staples 7.9%
- --------------------------------------------
Financial & Business Services 21.8%
- --------------------------------------------
Materials & Processing 15.5%
- --------------------------------------------
Utilities 21.0%
- --------------------------------------------
Other 7.3%
- --------------------------------------------
</TABLE>
13
<PAGE>
BLAIRLOGIE INTERNATIONAL ACTIVE FUND
Portfolio Manager:
Blairlogie Capital Management
Edinburgh, Scotland
Investment Objective and Primary Investments:
Seeks long-term growth of capital; invests primarily in a diversified portfolio
of international equity securities.
Annualized Returns Ended 6/30/96
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
Since
1 Yr. 3 Yrs. 5 Yrs. Inception
<S> <C> <C> <C> <C>
Blairlogie
International
Active Fund
Inst. Class (%) 18.48 13.17 n/a 11.67
- ----------------------------------------------------------------------
Blairlogie
International
Active Fund
Admin. Class (%) 18.13 n/a n/a 14.08
- ----------------------------------------------------------------------
EAFE Index (%) 12.85 10.32 n/a n/a
- ----------------------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
BLAIRLOGIE
INTERNATIONAL
ACTIVE FUND EAFE INDEX
<S> <C> <C>
7/01/93 $200,000 $200,000
6/30/94 $240,887 $233,861
6/30/95 $244,637 $237,848
6/30/96 $289,845 $268,943
</TABLE>
The line graph above assumes the investment of $200,000 on 7/1/93, the first
full month following the Fund's Institutional Class inception on 6/8/93,
compared with the Morgan Stanley Capital International EAFE Index (Europe,
Australasia, Far East), an unmanaged market index of over 1,000 stocks. The
performance of the Administrative Class from inception on 11/30/94 (shown at
left), reflects the payment of a service fee in an amount not to exceed 0.25% on
an annualized basis. Past performance is not an indication of future results.
. Our weighting and stock selection in Japan, which comprised around 40% of the
Fund throughout the eight months, had a neutral impact on relative
performance during the period.
. The Fund's second heaviest weighting throughout the period, the United
Kingdom, outperformed its index counterpart, although its underweighting
relative to the index neutralized some of this advantage.
. The Fund's sizable holdings in France contributed significantly to relative
performance on the basis of excellent stock selection as well as an above-
index weight.
. In all, the Fund benefited from good stock selection in eight of its eleven
largest weightings, underperforming in only two for the period.
Portfolio Composition
<TABLE>
<CAPTION>
Top Five Countries
% of Total
Country Investments
- --------------------------------------------
<S> <C>
Japan 41.3%
- --------------------------------------------
United Kingdom 12.5%
- --------------------------------------------
France 9.3%
- --------------------------------------------
Germany 8.7%
- --------------------------------------------
Switzerland 4.9%
- --------------------------------------------
Top Five Total 76.7%
</TABLE>
Industry Classification
as a Percent of Total Investments
<TABLE>
<S> <C>
Capital Goods 9.1%
- --------------------------------------------
Consumer Discretionary 12.3%
- --------------------------------------------
Consumer Services 7.6%
- --------------------------------------------
Financial & Business Services 17.5%
- --------------------------------------------
Materials & Processing 16.0%
- --------------------------------------------
Technology 6.5%
- --------------------------------------------
Utilities 11.2%
- --------------------------------------------
Other 19.8%
- --------------------------------------------
</TABLE>
14
<PAGE>
Balanced Fund
PORTFOLIO MANAGERS:
Pacific Investment
Management Company
Newport Beach, California
Parametric Portfolio Associates*
Seattle, Washington
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks total return; invests in common stocks, fixed income securities and money
market instruments.
<TABLE>
<CAPTION>
Annualized Returns Ended 6/30/96
- ----------------------------------------------------------------------
Since
1 Yr. 3 Yrs. 4 Yrs. Inception
------ ------ ------ ---------
<S> <C> <C> <C> <C>
Balanced
Fund (%) 15.13 10.38 10.97 11.13
- ----------------------------------------------------------------------
S&P 500
Index (%) 26.12 17.25 n/a n/a
- ----------------------------------------------------------------------
Lehman Bros.
Aggregate Bond
Index (%) 5.02 5.27 n/a n/a
- ----------------------------------------------------------------------
</TABLE>
[Line Graph Appears Here]
<TABLE>
<CAPTION>
LEHMAN
BALANCED AGGREGATE S&P 500
FUND INDEX INDEX
<S> <C> <C> <C>
7/01/92 $200,000 $200,000 $200,000
6/30/93 $225,530 $223,575 $227,212
6/30/94 $222,936 $220,640 $230,229
6/30/95 $263,427 $248,336 $290,330
6/30/96 $303,282 $260,813 $366,159
</TABLE>
The line graph above assumes the investment of $200,000 on 7/1/92, the first
full month following the Fund's Institutional Class inception on 6/25/92,
compared with the Lehman Brothers Aggregate Bond Index and S&P 500 Index,
unmanaged bond and stock market indexes. Past performance is not an indication
of future results.
. Stock selection had the largest impact on performance of the equity portion.
The Fund outperformed in seven economic sectors but fell behind the index in
eight.
. Best-performing index sectors were capital goods (+30.5%), retail (+26.9%)
and energy (+23.1%). The Fund maintained an above-index weight in retail but
was below index weight in capital goods and energy, which hindered
performance.
. An above-index duration aided the bond portion's performance in the final two
months of 1995, but detracted from returns in the first half of 1996.
. The strong performance of the bond portion's mortgage-backed and lower-tiered
investment grade holdings contributed to outperformance.
PORTFOLIO COMPOSITION
<TABLE>
<CAPTION>
Top Five Holdings
% of Total
Issuer Investments
- --------------------------------------------
<S> <C>
U.S. Treasury Notes - 5.625% 5.6%
- --------------------------------------------
Government National Mortgage
Association - 6.5% 5.2%
- --------------------------------------------
Government National Mortgage
Association - 7.25% 2.9%
- --------------------------------------------
State Street Bank - 4% 2.4%
- --------------------------------------------
Government National Mortgage
Association - 7.375% 2.3%
- --------------------------------------------
Top Five Total 18.4%
</TABLE>
Industry Classification
as a Percent of Total Investments
<TABLE>
<S> <C>
Other Common Stocks 28.1%
- --------------------------------------------
Corporate Bonds & Notes 4.9%
- --------------------------------------------
U.S. Treasury Notes 5.6%
- --------------------------------------------
Mortgage-Backed Securities 25.7%
- --------------------------------------------
Short-Term Instruments 8.8%
- --------------------------------------------
Financial & Business Services 9.7%
- --------------------------------------------
Consumer Discretionary 9.0%
- --------------------------------------------
Technology 8.2%
- --------------------------------------------
</TABLE>
*Effective August 1, 1996, NFJ Investment Group and Cadence Capital Management
replaced Parametric Portfolio Associates as managers of the common stock
segment of the Balanced Fund.
15
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
Amounts in thousands, except per share amounts
<TABLE>
<CAPTION>
----------- --------------- ------------- ---------------- --------
Cadence
Cadence Capital Mid Cap
NFJ Equity NFJ Diversified NFJ Small Cap Appreciation Growth
Income Fund Low P/E Fund Value Fund Fund Fund
----------- --------------- ------------- ---------------- --------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at value $120,863 $55,606 $33,417 $343,036 $231,855
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Cash and foreign currency 0 499 0 0 0
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Receivable for investments and
foreign currency sold 2,237 0 0 5,003 895
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Receivable for Fund shares sold 158 57 13 682 158
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Variation margin receivable 0 0 0 0 0
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Interest and dividends receivable 460 82 76 394 159
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
123,718 56,244 33,506 349,115 233,067
================================================= =========== ============== ============= ============== ========
Liabilities:
Payable for investments and foreign
currency purchased $ 0 $ 3,492 $ 25 $ 0 $ 713
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Written options outstanding 0 0 0 0 0
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Payable for Fund shares redeemed 700 0 0 21 121
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Dividends payable 130 0 8 180 25
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Accrued investment advisor's fee 48 16 15 119 80
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Accrued administrator's fee 27 9 7 66 45
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Accrued distribution fee 1 0 1 0 0
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Accrued trustees' fee 1 0 0 1 1
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Other liabilities 0 0 0 0 0
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
907 3,517 56 387 985
================================================= =========== ============== ============= ============== ========
Net Assets $122,811 $52,727 $33,450 $348,728 $232,082
================================================= =========== ============== ============= ============== ========
Net Assets Consist of:
Paid in capital $ 93,579 $48,467 $25,770 $266,949 $169,974
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Undistributed (overdistributed)
net investment income 3,782 348 837 3,922 2,129
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Accumulated undistributed net realized gain (loss) 7,778 752 2,963 27,208 28,839
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Net unrealized appreciation 17,672 3,160 3,880 50,649 31,140
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
$122,811 $52,727 $33,450 $348,728 $232,082
================================================= =========== ============== ============= ============== ========
Shares Issued and Outstanding
Institutional class 8,130 4,232 2,044 19,265 11,881
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Administrative class 425 0 312 0 55
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Net Asset Value, Offering and Redemption Price
Per Share (Net Assets Per Share Outstanding)
Institutional class $14.36 $12.46 $14.20 $18.10 $19.44
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Administrative class 14.35 - 14.20 - 19.44
- ------------------------------------------------- ----------- -------------- ------------- -------------- --------
Cost of Investments Owned 103,191 52,446 29,537 292,387 200,715
================================================= =========== ============== ============= ============== ========
Cost of Foreign Currency Held 0 0 0 0 0
================================================= =========== ============== ============= ============== ========
</TABLE>
See Notes to Financial Statements
16
<PAGE>
<TABLE>
<CAPTION>
-------------- ------------- -------------- ---------------
Columbus
Cadence Micro Cadence Small Columbus Circle Circle Investors
Cap Growth Cap Growth Investors Core Mid Cap Equity
Fund Fund Equity Fund Fund
-------------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
Assets:
Investments, at value $84,865 $32,870 $44,328 $8,355
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Cash and foreign currency 0 0 1 28
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Receivable for investments and
foreign currency sold 431 410 432 179
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Receivable for Fund shares sold 313 200 0 0
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Variation margin receivable 0 0 0 0
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Interest and dividends receivable 25 24 27 1
- ------------------------------------------------- -------------- ------------- -------------- ---------------
85,634 33,504 44,788 8,563
================================================= ============== ============= ============== ===============
Liabilities:
Payable for investments and foreign
currency purchased $ 986 $ 332 $ 330 $ 179
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Written options outstanding 0 0 2 0
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Payable for Fund shares redeemed 0 0 385 0
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Dividends payable 0 0 8 0
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Accrued investment advisor's fee 91 40 20 4
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Accrued administrator's fee 18 10 9 2
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Accrued distribution fee 0 0 7 0
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Accrued trustees' fee 0 0 0 0
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Other liabilities 0 56 0 0
- ------------------------------------------------- -------------- ------------- -------------- ---------------
1,095 438 761 185
================================================= ============== ============= ============== ===============
Net Assets $84,539 $33,066 $44,027 $8,378
================================================= ============== ============= ============== ===============
Net Assets Consist of:
Paid in capital $53,355 $12,237 $38,342 $6,019
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Undistributed (overdistributed)
net investment income 0 3,202 1,498 280
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Accumulated undistributed net realized gain (loss) 8,934 12,658 58 173
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Net unrealized appreciation 22,250 4,969 4,129 1,906
- ------------------------------------------------- -------------- ------------- -------------- ---------------
$84,539 $33,066 $44,027 $8,378
================================================= ============== ============= ============== ===============
Shares Issued and Outstanding
Institutional class 4,546 1,582 771 571
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Administrative class 31 5 2,477 0
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Net Asset Value, Offering and Redemption Price
Per Share (Net Assets Per Share Outstanding)
Institutional class $18.47 $20.83 $13.55 $14.66
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Administrative class 18.46 20.82 13.56 -
- ------------------------------------------------- -------------- ------------- -------------- ---------------
Cost of Investments Owned 62,615 27,901 40,203 6,449
================================================= ============== ============= ============== ===============
Cost of Foreign Currency Held 0 0 0 0
================================================= ============== ============= ============== ===============
</TABLE>
<TABLE>
<CAPTION>
-------------- ----------- ------------ -------
Parametric Blairlogie Blairlogie
Enhanced Equity Emerging International Balanced
Fund Markets Fund Active Fund Fund
-------------- ----------- ------------ -------
<S> <C> <C> <C> <C>
Assets:
Investments, at value $83,354 $ 77,256 $71,062 $89,475
- ------------------------------------------------- -------------- ----------- ------------ -------
Cash and foreign currency 0 831 3,679 0
- ------------------------------------------------- -------------- ----------- ------------ -------
Receivable for investments and
foreign currency sold 0 2,706 983 3,976
- ------------------------------------------------- -------------- ----------- ------------ -------
Receivable for Fund shares sold 0 30 40 2
- ------------------------------------------------- -------------- ----------- ------------ -------
Variation margin receivable 0 0 15 90
- ------------------------------------------------- -------------- ----------- ------------ -------
Interest and dividends receivable 116 365 218 413
- ------------------------------------------------- -------------- ----------- ------------ -------
83,470 81,188 75,997 93,956
================================================= ============== =========== ============ =======
Liabilities:
Payable for investments and foreign
currency purchased $ 0 $ 97 $ 54 $11,283
- ------------------------------------------------- -------------- ----------- ------------ -------
Written options outstanding 0 0 0 2
- ------------------------------------------------- -------------- ----------- ------------ -------
Payable for Fund shares redeemed 0 94 48 0
- ------------------------------------------------- -------------- ----------- ------------ -------
Dividends payable 0 0 0 4
- ------------------------------------------------- -------------- ----------- ------------ -------
Accrued investment advisor's fee 29 53 35 28
- ------------------------------------------------- -------------- ----------- ------------ -------
Accrued administrator's fee 16 31 29 16
- ------------------------------------------------- -------------- ----------- ------------ -------
Accrued distribution fee 0 0 0 0
- ------------------------------------------------- -------------- ----------- ------------ -------
Accrued trustees' fee 0 0 0 0
- ------------------------------------------------- -------------- ----------- ------------ -------
Other liabilities 0 0 0 61
- ------------------------------------------------- -------------- ----------- ------------ -------
45 275 166 11,394
================================================= ============== =========== ============ =======
Net Assets $83,425 $ 80,913 $75,831 $82,562
================================================= ============== =========== ============ =======
Net Assets Consist of:
Paid in capital $57,946 $ 88,130 $66,518 $70,614
- ------------------------------------------------- -------------- ----------- ------------ -------
Undistributed (overdistributed)
net investment income 954 (33) 1,936 0
- ------------------------------------------------- -------------- ----------- ------------ -------
Accumulated undistributed net realized gain (loss) 10,860 (13,517) 1,214 1,338
- ------------------------------------------------- -------------- ----------- ------------ -------
Net unrealized appreciation 13,665 6,333 6,163 10,610
- ------------------------------------------------- -------------- ----------- ------------ -------
$83,425 $ 80,913 $75,831 $82,562
================================================= ============== =========== ============ =======
Shares Issued and Outstanding
Institutional class 5,243 6,361 5,600 7,096
- ------------------------------------------------- -------------- ----------- ------------ -------
Administrative class 0 29 450 0
- ------------------------------------------------- -------------- ----------- ------------ -------
Net Asset Value, Offering and Redemption Price
Per Share (Net Assets Per Share Outstanding)
Institutional class $15.91 $12.66 $12.54 $11.64
- ------------------------------------------------- -------------- ----------- ------------ -------
Administrative class - 12.63 12.51 -
- ------------------------------------------------- -------------- ----------- ------------ -------
Cost of Investments Owned 69,689 70,913 64,970 79,066
================================================= ============== =========== ============ =======
Cost of Foreign Currency Held 0 0 2,077 0
================================================= ============== =========== ============ =======
</TABLE>
17
<PAGE>
STATEMENT OF OPERATIONS
For the eight months ended June 30, 1996
<TABLE>
<CAPTION>
$ in thousands
Cadence
Cadence Capital Mid Cap
NFJ Equity NFJ Diversified NFJ Small Cap Appreciation Growth
Income Fund Low P/E Fund Value Fund Fund Fund
----------- --------------- ------------- --------------- --------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 3,622 $ 379 $ 708 $ 3,231 $ 2,042
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Interest 276 79 67 778 452
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Total income 3,898 458 775 4,009 2,494
========================================== ========== ======== ======== ========== ==========
Expenses:
Investment advisory fees 426 66 157 883 618
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Administration fees 237 37 65 491 343
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Distribution fees - Administrative Class 10 0 8 0 2
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Trustees' fees 5 0 1 11 7
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Total expenses 678 103 231 1,385 970
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Net Investment Income (Loss) 3,220 355 544 2,624 1,524
========================================== ========== ======== ======== ========== ==========
Net Realized and Unrealized Gain:
Net realized gain on investments 11,596 1,115 3,943 31,135 30,980
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Net realized gain (loss) on futures
contracts and written options 0 0 0 0 0
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Net realized loss on foreign
currency transactions 0 0 0 0 0
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Net change in unrealized appreciation
depreciation) on investments 6,902 1,082 1,415 6,136 (13,220)
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on futures contracts
and written options 0 0 0 0 0
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on translation of assets
and liabilities denominated in
foreign currencies 0 0 0 0 0
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Net Gain 18,498 2,197 5,358 37,271 17,760
- ------------------------------------------ ---------- -------- -------- ---------- ----------
Net Increase in Assets
Resulting from Operations $ 21,718 $ 2,552 $ 5,902 $ 39,895 $ 19,284
========================================== ========== ======== ======== ========== ==========
</TABLE>
See Notes to Financial Statements
18
<PAGE>
STATEMENT OF OPERATIONS
For the eight months ended June 30, 1996
<TABLE>
<CAPTION>
$ in thousands
------------- ------------- --------------- ----------------
Cadence Micro Cadence Small Columbus Circle Circle Investors
Cap Growth Cap Growth Investors Core Mid Cap Equity
Fund Fund Equity Fund Fund
------------- ------------- --------------- ----------------
<S> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 337 $ 345 $ 242 $ 17
- ------------------------------------------ -------- -------- -------- -------
Interest 226 103 105 15
- ------------------------------------------ -------- -------- -------- -------
Total income 563 448 347 32
========================================== ======== ======== ======== =======
Expenses:
Investment advisory fees 670 426 146 35
- ------------------------------------------ -------- -------- -------- -------
Administration fees 134 107 64 15
- ------------------------------------------ -------- -------- -------- -------
Distribution fees - Administrative Class 0 1 49 0
- ------------------------------------------ -------- -------- -------- -------
Trustees' fees 3 0 1 0
- ------------------------------------------ -------- -------- -------- -------
Total expenses 807 534 260 50
- ------------------------------------------ -------- -------- -------- -------
Net Investment Income (Loss) (244) (86) 87 (18)
========================================== ======== ======== ======== =======
Net Realized and Unrealized Gain:
Net realized gain on investments 8,951 15,949 1,591 471
- ------------------------------------------ -------- -------- -------- -------
Net realized gain (loss) on futures
contracts and written options 0 0 (7) 0
- ------------------------------------------ -------- -------- -------- -------
Net realized loss on foreign
currency transactions 0 0 0 0
- ------------------------------------------ -------- -------- -------- -------
Net change in unrealized appreciation
(depreciation) on investments 8,025 (11,349) 1,686 853
- ------------------------------------------ -------- -------- -------- -------
Net change in unrealized appreciation
(depreciation) on futures contracts
and written options 0 0 3 0
- ------------------------------------------ -------- -------- -------- -------
Net change in unrealized appreciation
(depreciation) on translation of assets
and liabilities denominated in
foreign currencies 0 0 0 0
- ------------------------------------------ -------- -------- -------- -------
Net Gain 16,976 4,600 3,273 1,324
- ------------------------------------------ -------- -------- -------- -------
Net Increase in Assets
Resulting from Operations $ 16,732 $ 4,514 $ 3,360 $ 1,306
========================================== ======== ======== ======== =======
</TABLE>
See Notes to Financial Statements
STATEMENT OF OPERATIONS
For the eight months ended June 30, 1996
<TABLE>
<CAPTION>
$ in thousands
--------------- ------------ ------------- --------
Parametric Blairlogie Blairlogie
Enhanced Equity Emerging International Balanced
Fund Markets Fund Active Fund Fund
--------------- ------------ ------------- --------
<S> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 1,342 $ 1,083 $ 833 $ 680
- ------------------------------------------ ---------- ---------- -------- --------
Interest 46 55 112 1,491
- ------------------------------------------ ---------- ---------- -------- --------
Total income 1,388 1,138 945 2,171
========================================== ========== ========== ======== ========
Expenses:
Investment advisory fees 275 441 295 236
- ------------------------------------------ ---------- ---------- -------- --------
Administration fees 152 259 244 130
- ------------------------------------------ ---------- ---------- -------- --------
Distribution fees - Administrative Class 0 1 4 0
- ------------------------------------------ ---------- ---------- -------- --------
Trustees' fees 3 3 3 3
- ------------------------------------------ ---------- ---------- -------- --------
Total expenses 430 704 546 369
- ------------------------------------------ ---------- ---------- -------- --------
Net Investment Income (Loss) 958 434 399 1,802
========================================== ========== ========== ======== ========
Net Realized and Unrealized Gain:
Net realized gain on investments 11,972 1,701 2,847 1,866
- ------------------------------------------ ---------- ---------- -------- --------
Net realized gain (loss) on futures
contracts and written options 0 0 161 (88)
- ------------------------------------------ ---------- ---------- -------- --------
Net realized loss on foreign
currency transactions 0 (343) (259) 0
- ------------------------------------------ ---------- ---------- -------- --------
Net change in unrealized appreciation
depreciation) on investments (909) 7,317 4,938 3,171
- ------------------------------------------ ---------- ---------- -------- --------
Net change in unrealized appreciation
(depreciation) on futures contracts
and written options 0 0 31 (83)
- ------------------------------------------ ---------- ---------- -------- --------
Net change in unrealized appreciation
(depreciation) on translation of assets
and liabilities denominated in
foreign currencies 0 (14) 144 0
- ------------------------------------------ ---------- ---------- -------- --------
Net Gain 11,063 8,661 7,862 4,866
- ------------------------------------------ ---------- ---------- -------- --------
Net Increase in Assets
Resulting from Operations $ 12,021 $ 9,095 $ 8,261 $ 6,668
========================================== ========== ========== ======== ========
</TABLE>
See Notes to Financial Statements
19
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
------------------------ ----------------------- -----------------------------
$ in thousands NFJ Equity Income Fund NFJ Diversified NFJ Small Cap Value Fund
Low P/E Fund
------------------------ ----------------------- -----------------------------
Eight Eight Eight
Months Year Months Year Months Year
Ended Ended Ended Ended Ended Ended
Increase (Decrease) in June 30, October 31, June 30, October 31, June 30, October 31,
Net Assets from: 1996 1995(a) 1996 1995(a) 1996 1995(a)
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income
(loss) $ 3,220 $ 3,800 $ 355 $ 337 $ 544 $ 763
- --------------------------- ------------------------ ----------------------- -----------------------------
Net realized gain 11,596 4,643 1,115 2,035 3,943 2,349
- --------------------------- ------------------------ ----------------------- -----------------------------
Net change in unrealized
appreciation
(depreciation) on
investments 6,902 9,476 1,082 484 1,415 3,100
- --------------------------- ------------------------ ----------------------- -----------------------------
Net increase resulting
from operations 21,718 17,919 2,552 2,856 5,902 6,212
=========================== ======================== ======================= =============================
Net equalization credits
(debits) (222) 62 42 (4) (26) (10)
=========================== ======================== ======================= =============================
Distributions to
Shareholders
From net investment income
Institutional class (3,065) (3,822) (355) (342) (483) (761)
- --------------------------- ------------------------ ----------------------- -----------------------------
Administrative class (155) (4) 0 0 (62) 0
- --------------------------- ------------------------ ----------------------- -----------------------------
In excess of net
investment income
Institutional class (7) 0 0 0 (5) 0
- --------------------------- ------------------------ ----------------------- -----------------------------
Administrative class 0 0 0 0 (1) 0
- --------------------------- ------------------------ ----------------------- -----------------------------
From net realized capital
gains
Institutional class (4,404) (2,558) (2,045) (1,375) (2,049) (2,473)
- --------------------------- ------------------------ ----------------------- -----------------------------
Administrative class (232) (4) 0 0 (293) 0
- --------------------------- ------------------------ ----------------------- -----------------------------
Total Distributions (7,863) (6,388) (2,400) (1,717) (2,893) (3,234)
=========================== ======================== ======================= =============================
Fund Share Transactions
Receipts for shares sold
Institutional class 34,285 25,992 36,330 115 2,712 4,351
- --------------------------- ------------------------ ----------------------- -----------------------------
Administrative class 6,890 120 0 0 5,755 0
- --------------------------- ------------------------ ----------------------- -----------------------------
Issued as reinvestment of
distributions
Institutional class 6,952 5,859 2,397 1,715 2,501 3,218
- --------------------------- ------------------------ ----------------------- -----------------------------
Administrative class 387 8 0 0 355 0
- --------------------------- ------------------------ ----------------------- -----------------------------
Cost of shares redeemed
Institutional class (55,588) (17,770) (637) (3,964) (13,943) (6,680)
- --------------------------- ------------------------ ----------------------- -----------------------------
Administrative class (1,903) (12) 0 0 (2,006) 0
- --------------------------- ------------------------ ----------------------- -----------------------------
Net increase (decrease)
resulting from Fund
share transactions (8,977) 14,197 38,090 (2,134) (4,626) 889
- --------------------------- ------------------------ ----------------------- -----------------------------
Total Increase (Decrease)
in Net Assets 4,656 25,790 38,284 (999) (1,643) 3,857
=========================== ======================== ======================= =============================
Net Assets
Beginning of period 118,155 92,365 14,443 15,442 35,093 31,236
- --------------------------- ------------------------ ----------------------- -----------------------------
End of period * $122,811 $118,155 $52,727 $14,443 $ 33,450 $35,093
- --------------------------- ------------------------ ----------------------- -----------------------------
*Including net
undistributed
investment income of: $ 3,782 $ 0 $ 348 $ 0 $ 837 $ 1
- --------------------------- ------------------------ ----------------------- -----------------------------
</TABLE>
(a) Audited by other independent accountants
See Notes to Financial Statements
20
<PAGE>
<TABLE>
<CAPTION>
----------------------- ------------------------
Cadence Capital Cadence Mid Cap
$ in thousands Appreciation Fund Growth Fund
----------------------- ------------------------
Eight Eight
Months Year Months Year
Ended Ended Ended Ended
June 30, October 31, June 30, October 31,
Increase (Decrease) in Net Assets from: 1996 1995(a) 1996 1995(a)
<S> <C> <C> <C>
Operations
Net investment income
(loss) $ 2,624 $ 2,383 $ 1,524 $ 615
- -------------------------------------------------- ----------------------- ------------------------
Net realized gain 31,135 16,227 30,980 6,630
- -------------------------------------------------- ----------------------- ------------------------
Net change in unrealized
appreciation (depreciation) on investments 6,136 31,810 (13,220) 31,560
- -------------------------------------------------- ----------------------- ------------------------
Net increase resulting from operations 39,895 50,420 19,284 38,805
================================================== ======================= ========================
Net equalization credits (debits) 214 65 59 46
================================================== ======================= ========================
Distributions to Shareholders
From net investment
Institutional class (2,624) (2,383) (1,518) (615)
- -------------------------------------------------- ----------------------- ------------------------
Administrative class 0 0 (6) 0
- -------------------------------------------------- ----------------------- ------------------------
In excess of net investment income
Institutional class 0 0 (2) 0
- -------------------------------------------------- ----------------------- ------------------------
Administrative class 0 0 0 0
- -------------------------------------------------- ----------------------- ------------------------
From net realized capital gains
Institutional class (15,492) 0 (4,245) 0
- -------------------------------------------------- ----------------------- ------------------------
Administrative class 0 0 (21) 0
- -------------------------------------------------- ----------------------- ------------------------
Total Distributions (18,116) (2,383) (5,792) (615)
================================================== ======================= ========================
Fund Share Transactions
Receipts for shares sold
Institutional class 93,460 47,862 65,496 56,121
- -------------------------------------------------- ----------------------- ------------------------
Administrative class 0 0 266 1,745
- -------------------------------------------------- ----------------------- ------------------------
Issued as reinvestment of distributions
Institutional class 15,598 2,167 5,548 563
- -------------------------------------------------- ----------------------- ------------------------
Administrative class 0 0 27 0
- -------------------------------------------------- ----------------------- ------------------------
Cost of shares redeemed
Institutional class (18,543) (27,352) (42,836) (27,331)
- -------------------------------------------------- ----------------------- ------------------------
Administrative class 0 0 (182) (913)
- -------------------------------------------------- ----------------------- ------------------------
Net increase (decrease) resulting from Fund
share transactions 90,515 22,677 28,319 30,185
- -------------------------------------------------- ----------------------- ------------------------
Total Increase (Decrease) in Net Assets 112,508 70,779 41,870 68,421
================================================== ======================= ========================
Net Assets
Beginning of period 236,220 165,441 190,212 121,791
- -------------------------------------------------- ----------------------- ------------------------
End of period $348,728 $236,220 $232,082 $190,212
- -------------------------------------------------- ----------------------- ------------------------
*Including net undistributed
investment income of: $ 3,922 $ 0 $ 2,129 $ 0
- -------------------------------------------------- ----------------------- ------------------------
</TABLE>
<TABLE>
<CAPTION>
------------------------- -------------------------------
Cadence Micro Cap Cadence Small Cap
$ in thousands Growth Fund Growth Fund
------------------------- -------------------------------
Eight Eight
Months Year Months Year
Ended Ended Ended Ended
June 30, October 31, June 30, October 31,
Increase (Decrease) in Net Assets from: 1996 1995(a) 1996 1995(a)
<S> <C> <C> <C> <C>
Operations
Net investment income
(loss) $ (244) $ (182) $ (86) $ (161)
- -------------------------------------------------- ------------------------- -------------------------------
Net realized gain 8,951 2,911 15,949 5,706
- -------------------------------------------------- ------------------------- -------------------------------
Net change in unrealized
appreciation (depreciation) on investments 8,025 10,798 (11,349) 4,873
- -------------------------------------------------- ------------------------- -------------------------------
Net increase resulting from operations 16,732 13,527 4,514 10,418
================================================== ========================= ===============================
Net equalization credits (debits) 0 0 0 0
================================================== ========================= ===============================
Distributions to Shareholders
From net investment
Institutional class 0 0 0 0
- -------------------------------------------------- ------------------------- -------------------------------
Administrative class 0 0 0 0
- -------------------------------------------------- ------------------------- -------------------------------
In excess of net investment income
Institutional class 0 0 0 0
- -------------------------------------------------- ------------------------- -------------------------------
Administrative class 0 0 0 0
- -------------------------------------------------- ------------------------- -------------------------------
From net realized capital gains
Institutional class (1,543) 0 (5,641) (3,708)
- -------------------------------------------------- ------------------------- -------------------------------
Administrative class 0 0 (55) 0
- -------------------------------------------------- ------------------------- -------------------------------
Total Distributions (1,543) 0 (5,696) (3,708)
================================================== ========================= ===============================
Fund Share Transactions
Receipts for shares sold
Institutional class 21,977 26,532 4,731 16,717
- -------------------------------------------------- ------------------------- -------------------------------
Administrative class 707 0 437 574
- -------------------------------------------------- ------------------------- -------------------------------
Issued as reinvestment of distributions
Institutional class 1,379 0 4,655 3,456
- -------------------------------------------------- ------------------------- -------------------------------
Administrative class 0 0 55 0
- -------------------------------------------------- ------------------------- -------------------------------
Cost of shares redeemed
Institutional class (24,322) (2,889) (49,237) (3,361)
- -------------------------------------------------- ------------------------- -------------------------------
Administrative class (166) 0 (914) 0
- -------------------------------------------------- ------------------------- -------------------------------
Net increase (decrease) resulting from Fund
share transactions (425) 23,643 (40,273) 17,386
- -------------------------------------------------- ------------------------- -------------------------------
Total Increase (Decrease) in Net Assets 14,764 37,170 (41,455) 24,096
================================================== ========================= ===============================
Net Assets
Beginning of period 69,775 32,605 74,521 50,425
- -------------------------------------------------- ------------------------- -------------------------------
End of period $ 84,539 $69,775 $ 33,066 $74,521
- -------------------------------------------------- ------------------------- -------------------------------
*Including net undistributed
investment income of: $ 0 $ 0 $ 3,202 $ 0
- -------------------------------------------------- ------------------------- -------------------------------
</TABLE>
21
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (Cont.)
<TABLE>
<CAPTION>
-------------------------- --------------------------- ------------------------
Columbus Circle Columbus Circle Parametric
Investors Investors Enhanced
$ in thousands Core Equity Fund Mid Cap Equity Fund Equity Fund
-------------------------- --------------------------- ------------------------
Eight Period From Eight Period From Eight
Months December 28, Months December 28, Months
Ended 1994 to Ended 1994 to Ended Year Ended
Increase (Decrease) June 30, October 31, June 30, October 31, June 30, October 31,
in Net Assets from: 1996 1995 (a) 1996 1995 (a) 1996 1995 (a)
Operations
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss) $ 87 $ 62 $ (18) $ 10 $ 958 $ 1,357
- -------------------------- ------------------------- --------------------------- ------------------------
Net realized gain (loss) 1,584 756 471 243 11,972 2,417
- -------------------------- ------------------------- --------------------------- ------------------------
Net change in unrealized
appreciation
(depreciation) on
investments 1,686 2,439 853 1,053 (909) 12,008
- -------------------------- ------------------------- --------------------------- ------------------------
Net change in unrealized
appreciation
(depreciation) on
futures contracts and
written options 3 1 0 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Net change in unrealized
appreciation
(depreciation) on
translation of assets
and liabilities denominated
in foreign currencies 0 0 0 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Net increase (decrease)
resulting from operations 3,360 3,258 1,306 1,306 12,021 15,782
========================== ========================= =========================== ========================
Net equalization credits
(debits) 21 80 (1) 13 10 (27)
========================== ========================= =========================== ========================
Distributions to Shareholders
From net investment income
Institutional class (29) (27) 0 (10) (958) (1,356)
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class (58) (35) 0 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
In excess of net
investment income
Institutional class (9) 0 0 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class (18) 0 0 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
From net realized capital
gains
Institutional class (180) 0 (243) 0 (2,327) (939)
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class (577) 0 0 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Total Distributions (871) (62) (243) (10) (3,285) (2,295)
========================== ========================= =========================== ========================
Fund Share Transactions
Receipts for shares sold
Institutional class 2,105 7,025 474 7,334 44,945 11,181
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class 17,158 23,345 0 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Issued as reinvestment of
distributions
Institutional class 73 8 82 3 3,136 2,282
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class 652 35 0 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Cost of shares redeemed
Institutional class (118) (293) (1,597) (289) (47,401) (18,839)
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class (10,789) (960) 0 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Net increase (decrease)
resulting from Fund
share transactions 9,081 29,160 (1,041) 7,048 680 (5,376)
- -------------------------- ------------------------- --------------------------- ------------------------
Total Increase (Decrease)
in Net Assets 11,591 32,436 21 8,357 9,426 8,084
========================== ========================= =========================== ========================
Net Assets
Beginning of period 32,436 0 8,357 0 73,999 65,915
- -------------------------- ------------------------- --------------------------- ------------------------
End of period * $ 44,027 $32,436 $ 8,378 $8,357 $ 83,425 $ 73,999
- -------------------------- ------------------------- --------------------------- ------------------------
*Including net undistributed
(overdistributed)
investment income of: $ 1,498 $ 0 $ 280 $ 0 $ 954 $ 0
========================== ========================= =========================== ========================
</TABLE>
(a) Audited by other independent accountants
See Notes to Financial Statements
22
<PAGE>
<TABLE>
<CAPTION>
------------------------- --------------------------- ------------------------
Blairlogie Emerging Blairlogie International
$ in thousands Markets Fund Active Fund Balanced Fund
------------------------- --------------------------- ------------------------
Eight Eight Eight
Months Months Months
Ended Year Ended Ended Year Ended Ended Year Ended
Increase (Decrease) June 30, October 31, June 30, October 31, June 30, October 31,
in Net Assets from: 1996 1995 (a) 1996 1995 (a) 1996 1995 (a)
Operations
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss) $ 434 $ 428 $ 399 $ 515 $ 1,802 $ 3,449
- -------------------------- ------------------------- --------------------------- ------------------------
Net realized gain (loss) 1,358 (15,110) 2,749 3,506 1,778 7,151
- -------------------------- ------------------------- --------------------------- ------------------------
Net change in unrealized
appreciation
(depreciation) on
investments 7,317 (8,263) 4,938 63 3,171 3,440
- -------------------------- ------------------------- --------------------------- ------------------------
Net change in unrealized
appreciation
(depreciation) on
futures contracts and
written options 0 0 31 (61) (83) 958
- -------------------------- ------------------------- --------------------------- ------------------------
Net change in unrealized
appreciation
(depreciation) on
translation of assets
and liabilities denominated
in foreign currencies (14) (2) 144 (73) 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Net increase (decrease)
resulting from operations 9,095 (22,947) 8,261 3,950 6,668 14,998
========================== ========================= =========================== ========================
Net equalization credits
(debits) (4) 4 62 142 0 0
========================== ========================= =========================== ========================
Distributions to Shareholders
From net investment income
Institutional class (236) (414) (382) (504) (1,802) (3,451)
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class (3) (3) (4) (5) 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
In excess of net
investment income
Institutional class 0 0 (1,896) 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class 0 0 (21) 0 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
From net realized capital
gains
Institutional class 0 (3,784) (1,127) (844) (6,227) 0
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class 0 0 (13) (2) 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Total Distributions (239) (4,201) (3,443) (1,355) (8,029) (3,451)
========================== ========================= =========================== ========================
Fund Share Transactions
Receipts for shares sold
Institutional class 32,382 64,126 14,180 45,600 9,459 20,019
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class 387 1,512 5,259 947 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Issued as reinvestment of
distributions
Institutional class 174 3,577 2,171 1,148 8,025 3,421
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class 3 4 38 7 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Cost of shares redeemed
Institutional class (34,303) (46,658) (14,496) (8,424) (6,199) (93,043)
- -------------------------- ------------------------- --------------------------- ------------------------
Administrative class (951) (668) (483) (302) 0 0
- -------------------------- ------------------------- --------------------------- ------------------------
Net increase (decrease)
resulting from Fund
share transactions (2,308) 21,893 6,669 38,976 11,285 (69,603)
- -------------------------- ------------------------- --------------------------- ------------------------
Total Increase (Decrease)
in Net Assets 6,544 (5,251) 11,549 41,713 9,924 (58,056)
========================== ========================= =========================== ========================
Net Assets
Beginning of period 74,369 79,620 64,282 22,569 72,638 130,694
- -------------------------- ------------------------- --------------------------- ------------------------
End of period * $ 80,913 $ 74,369 $ 75,831 $ 64,282 $ 82,562 $ 72,638
- -------------------------- ------------------------- --------------------------- ------------------------
*Including net undistributed
(overdistributed)
investment income of: $ (33) $ 10 $ 1,936 $ (13) $ 0 $ 0
========================== ========================= =========================== ========================
</TABLE>
23
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
------------ ----------- ------------- ------------ ----------- ------------- -------------
Net Realized/
Selected Per Share Data Net Asset Unrealized Total Income Dividends Distributions
for the Year or Period Ended: Value Net Gain from from Net from Net Distributions
Beginning of Investment (Loss) on Investment Investment Realized from
Period Income Investments Operations Income Capital Gains Equalization
------------ ----------- ------------- ------------ ----------- ------------- -------------
NFJ Equity Income Fund
Institutional Class
<S> <C> <C> <C> <C> <C> <C> <C>
11/01/95 - 06/30/96 $ 13.09 $ 0.78 $ 1.31 $ 2.09 $(0.34) $(0.48) $ 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/95 11.75 0.46 1.67 2.13 (0.46) (0.33) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/94 11.95 0.42 (0.16) 0.26 (0.42) (0.04) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/93 10.92 0.40 1.40 1.80 (0.40) (0.37) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/92 10.77 0.45 0.93 1.38 (0.43) (0.57) (0.23)
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
03/08/91 - 10/31/91 10.00 0.24 0.92 1.16 (0.24) (0.15) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
Administrative Class
11/01/95 - 06/30/96 13.13 0.75 1.31 2.06 (0.36) (0.48) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
11/30/94 - 10/31/95 11.12 0.39 2.35 2.74 (0.40) (0.33) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
NFJ Diversified Low P/E Fund
Institutional Class
11/01/95 - 06/30/96 $ 12.53 $ 0.25 $ 1.62 $ 1.87 $(0.17) $(1.77) $ 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/95 11.55 0.30 2.18 2.48 (0.30) (1.20) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/94 11.92 0.30 (0.28) 0.02 (0.29) (0.10) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/93 10.05 0.28 2.36 2.64 (0.28) (0.49) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
12/30/91 - 10/31/92 10.00 0.24 0.23 0.47 (0.24) (0.18) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
NFJ Small Cap Value Fund
Institutional
11/01/95 - 06/30/96 $13.10 $ 0.56 $ 1.49 $ 2.05 $(0.21) $(0.74) $ 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/95 12.07 0.28 1.92 2.20 (0.28) (0.89) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/94 12.81 0.29 (0.65) (0.36) (0.29) (0.09) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/93 10.98 0.24 2.33 2.57 (0.24) (0.50) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/92 10.09 0.22 1.17 1.39 (0.22) (0.24) (0.04)
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/01/91 - 10/31/91 10.00 0.02 0.10 0.12 (0.03) 0.00 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
Administrative Class
11/01/95 - 06/30/96 13.16 0.54 1.43 1.97 (0.19) (0.74) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
Cadence Capital Appreciation Fund
Institutional Class
11/01/95 - 06/30/96 $ 16.94 $ 0.35 $ 1.99 $ 2.34 $(0.15) $(1.03) $ 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/95 13.34 0.18 3.60 3.78 (0.18) 0.00 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/94 13.50 0.14 (0.12) 0.02 (0.14) (0.04) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/93 11.27 0.11 2.73 2.84 (0.11) (0.50) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/92 11.02 0.14 1.05 1.19 (0.14) (0.72) (0.08)
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
03/08/91 - 10/31/91 10.00 0.09 1.02 1.11 (0.09) 0.00 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
Cadence Mid Cap Growth Fund
Institutional Class
11/01/95 - 06/30/96 $ 18.16 $ 0.32 $ 1.53 $ 1.85 $(0.14) (0.43) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/95 13.97 0.07 4.19 4.26 (0.07) 0.00 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/94 13.97 0.06 0.01 0.07 (0.06) (0.01) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/93 11.29 0.07 2.70 2.77 (0.07) (0.02) 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
10/31/92 10.28 0.10 1.03 1.13 (0.10) 0.00 (0.02)
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
08/26/91 - 10/31/91 10.00 0.02 0.27 0.29 (0.01) 0.00 0.00
- ------------------------ ------------ ----------- ------------- ------------ ----------- ------------- -------------
</TABLE>
*Annualized
Periods ending prior to 06/30/96 were audited by other independent accountants.
See Notes to Financial Statements
24
<PAGE>
<TABLE>
<CAPTION>
Selected Per Share Data Ratio of Net
for the Year or Period Ended: Net Assets Ratio of Investment
Net Asset End of Expenses Income to Portfolio Average
NFJ Equity Income Fund Total Value End of Total Period to Average Average Net Turnover Commission
Institutional Class Distributions Period Return (000's) Net Assets Assets Rate Rate
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/01/95 - 06/30/96 $ (0.82) $14.36 16.35% $116,714 0.70%* 3.41%* 52.30% $ 0.06
10/31/95 (0.79) 13.09 19.36 118,015 0.70 3.83 46.49 0.06
10/31/94 (0.46) 11.75 2.25 92,365 0.70 3.77 35.56
10/31/93 (0.77) 11.95 16.65 67,854 0.70 3.55 38.60
10/31/92 (1.23) 10.92 12.89 30,506 0.70 3.83 46.74
03/08/91 - 10/31/91 (0.39) 10.77 11.81 15,628 0.74* 4.18* 61.51
Administrative Class
11/01/95 - 06/30/96 (0.84) 14.35 16.08 6,097 0.95* 3.19* 52.30 0.06
11/30/94 - 10/31/95 (0.73) 13.13 25.69 140 0.95* 3.43* 43.27 N/A
NFJ Diversified Low P/E
Fund Institutional Class
11/01/95 - 06/30/96 $ (1.94) $12.46 16.24% $ 52,727 0.70%* 2.40%* 28.53% $ 0.06
10/31/95 (1.50) 12.53 24.98 14,443 0.70 2.50 71.02 0.06
10/31/94 (0.39) 11.55 0.15 15,442 0.70 2.34 43.70
10/31/93 (0.77) 11.92 26.35 22,930 0.70 2.43 28.19
12/30/91 - 10/31/92 (0.42) 10.05 4.68 18,083 0.70* 2.57* 72.77
NFJ Small Cap Value Fund
Institutional Class
11/01/95 - 06/30/96 $ (0.95) $ 14.20 16.35% $ 29,017 0.85%* 2.12%* 35.21% $ 0.04
10/31/95 (1.17) 13.10 19.88 35,093 0.85 2.25 49.57 0.04
10/31/94 (0.38) 12.07 (2.89) 31,236 0.85 2.23 48.12
10/31/93 (0.74) 12.81 23.60 46,523 0.85 2.05 41.80
10/31/92 (0.50) 10.98 13.75 18,261 0.85 2.16 26.77
10/01/91 - 10/31/91 (0.03) 10.09 1.19 5,060 1.09* 3.06* 0.00
Administrative Class
11/01/95 - 06/30/96 (0.93) 14.20 15.64 4,433 1.10* 1.86* 35.21 0.04
Cadence Capital
Appreciation Fund
Institutional Class
11/01/95 - 06/30/96 $ (1.18) $18.10 14.65% $348,728 0.70%* 1.33%* 73.48% $ 0.04
10/31/95 (0.18) 16.94 28.47 236,220 0.70 1.22 82.69 0.05
10/31/94 (0.18) 13.34 0.15 165,441 0.70 1.17 76.75
10/31/93 (0.61) 13.50 25.30 84,990 0.70 0.94 81.15
10/31/92 (0.94) 11.27 10.75 36,334 0.70 1.13 134.17
03/08/91 - 10/31/91 (0.09) 11.02 11.19 18,813 0.75* 1.55* 40.54
Cadence Mid Cap Growth Fund
Institutional Class
11/01/95 - 06/30/96 $ (0.57) $ 19.44 10.37% $231,011 0.70%* 1.11%* 78.81% $ 0.04
10/31/95 (0.07) 18.16 30.54 189,320 0.70 0.43 78.29 0.04
10/31/94 (0.07) 13.97 0.58 121,791 0.70 0.45 60.85
10/31/93 (0.09) 13.97 24.57 67,625 0.70 0.56 97.87
10/31/92 (0.12) 11.29 10.91 21,213 0.70 0.87 65.92
08/26/91 - 10/31/91 (0.01) 10.28 2.98 2,748 0.82* 0.92* 13.41
</TABLE>
25
<PAGE>
FINANCIAL HIGHLIGHTS (Cont.)
Selected Per Share Data
for the Year or Period Ended:
<TABLE>
<CAPTION>
Net Realized/
Net Asset Net Unrealized Total Income Dividends Dividends in Distributions
Value Investment Gain from from Net Excess of Net from Net
Beginning of Income (Loss) on Investment Investment Investment Realized
Period (Loss) Investments Operations Income Income Capital Gains
<S> <C> <C> <C> <C> <C> <C> <C>
Cadence Mid Cap Growth
Fund Administrative Class
11/01/95 - 06/30/96 $ 18.17 $ 0.28 $ 1.53 $ 1.81 $(0.11) $ 0.00 $(0.43)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
11/30/94 - 10/31/95 13.31 0.03 4.85 4.88 (0.02) 0.00 0.00
- --------------------------- -------- ------ ------ ------ ------ ------ ------
Cadence Micro Cap Growth
Fund Institutional Class
11/01/95 - 06/30/96 $ 15.38 $ 0.00 $ 3.43 $ 3.43 $ 0.00 $ 0.00 $(0.34)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
10/31/95 11.87 (0.04) 3.55 3.51 0.00 0.00 0.00
- --------------------------- -------- ------ ------ ------ ------ ------ ------
10/31/94 11.06 (0.03) 0.84 0.81 0.00 0.00 0.00
- --------------------------- -------- ------ ------ ------ ------ ------ ------
06/25/93 - 10/31/93 10.00 0.00 1.07 1.07 0.00 0.00 0.00
- --------------------------- -------- ------ ------ ------ ------ ------ ------
Administrative Class
04/01/96 - 06/30/96 16.73 0.03 1.70 1.73 0.00 0.00 0.00
- --------------------------- -------- ------ ------ ------ ------ ------ ------
Cadence Small Cap Growth
Fund
Institutional Class
11/01/95 - 06/30/96 $ 21.02 $ 2.02 $(0.61) $ 1.41 $ 0.00 $ 0.00 $(1.60)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
10/31/95 19.38 (0.05) 3.12 3.07 0.00 0.00 (1.43)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
10/31/94 19.15 (0.02) 0.89 0.87 0.00 0.00 (0.64)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
10/31/93 15.80 (0.06) 6.19 6.13 0.00 0.00 (2.78)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
10/31/92 14.87 0.01 1.50 1.51 (0.01) 0.00 (0.57)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
01/07/91 - 10/31/91 10.00 0.02 5.03 5.05 (0.02) 0.00 (0.16)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
Administrative Class
11/01/95 - 06/30/96 21.01 2.02(a) (0.61)(a) 1.41 0.00 0.00 (1.60)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
09/27/95 - 10/31/95 21.90 (0.02) (0.87) (0.89) 0.00 0.00 0.00
- --------------------------- -------- ------ ------ ------ ------ ------ ------
Columbus Circle Investors
Core Equity Fund
Institutional Class
11/01/95 - 06/30/96 $ 12.72 $ 0.51 $ 0.65 $ 1.16 $(0.04) $(0.01) $(0.28)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
12/28/94 - 10/31/95 10.00 0.07 2.71 2.78 (0.06) 0.00 0.00
-------- ------ ------ ------ ------ ------ ------
Administrative Class
11/01/95 - 06/30/96 12.73 0.49 0.65 1.14 (0.02) (0.01) (0.28)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
05/31/95 - 10/31/95 11.45 0.02 1.28 1.30 (0.02) 0.00 0.00
-------- ------ ------ ------ ------ ------ ------
Columbus Circle Investors
Mid Cap Equity Fund
Institutional Class
11/01/95 - 06/30/96 $ 12.92 $ 0.49 $ 1.62 $ 2.11 $ 0.00 $ 0.00 $(0.37)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
12/28/94 - 10/31/95 10.00 0.02 2.92 2.94 (0.02) 0.00 0.00
- --------------------------- -------- ------ ------ ------ ------ ------ ------
Parametric Enhanced Equity
Fund
Institutional Class
11/01/95 - 06/30/96 $14.44 $ 0.34 $ 1.67 $ 2.01 $(0.16) $ 0.00 $(0.38)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
10/31/95 11.99 0.25 2.62 2.87 (0.25) 0.00 (0.17)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
10/31/94 12.08 0.25 (0.04) 0.21 (0.25) 0.00 (0.05)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
10/31/93 11.76 0.23 0.74 0.97 (0.23) 0.00 (0.42)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
10/31/92 10.80 0.16 1.06 1.22 (0.16) 0.00 (0.04)
- --------------------------- -------- ------ ------ ------ ------ ------ ------
02/11/91 - 10/31/91 10.00 0.16 0.80 0.96 (0.16) 0.00 0.00
- --------------------------- -------- ------ ------ ------ ------ ------ ------
</TABLE>
* Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
Periods ending prior to 06/30/96 were audited by other independent accountants.
See Notes to Financial Statements
26
<PAGE>
<TABLE>
<CAPTION>
Distributions Tax Basis Net Asset
from Return of Total Value End Total
Equalization Capital Distributions of Period Return
<S> <C> <C> <C> <C> <C>
Cadence Mid Cap Growth
Fund Administrative Class
11/01/95 - 06/30/96 $ 0.00 $ 0.00 $ (0.54) $ 19.44 10.17%
- --------------------------- ------ ------- -------- ------- -----
11/30/94 - 10/31/95 0.00 0.00 (0.02) 18.17 36.64
- --------------------------- ------ ------- -------- ------- -----
Cadence Micro Cap Growth
Fund Institutional Class
11/01/95 - 06/30/96 $ 0.00 $ 0.00 $ (0.34) $ 18.47 22.64%
- --------------------------- ------ ------- -------- ------- -----
10/31/95 0.00 0.00 0.00 15.38 29.54
- --------------------------- ------ ------- -------- ------- -----
10/31/94 0.00 0.00 0.00 11.87 7.31
- --------------------------- ------ ------- -------- ------- -----
06/25/93 - 10/31/93 0.00 (0.01) (0.01) 11.06 10.81
- --------------------------- ------ ------- -------- ------- -----
Administrative Class
04/01/96 - 06/30/96 0.00 0.00 0.00 18.46 10.34
- --------------------------- ------ ------- -------- ------- -----
Cadence Small Cap Growth
Fund Institutional Class
11/01/95 - 06/30/96 $ 0.00 $ 0.00 $ (1.60) $ 20.83 7.22%
- --------------------------- ------ ------- -------- ------- -----
10/31/95 0.00 0.00 (1.43) 21.02 17.39
- --------------------------- ------ ------- -------- ------- -----
10/31/94 0.00 0.00 (0.64) 19.38 4.62
- --------------------------- ------ ------- -------- ------- -----
10/31/93 0.00 0.00 (2.78) 19.15 38.80
- --------------------------- ------ ------- -------- ------- -----
10/31/92 0.00 0.00 (0.58) 15.80 10.20
- --------------------------- ------ ------- -------- ------- -----
01/07/91 - 10/31/91 0.00 0.00 (0.18) 14.87 50.68
- --------------------------- ------ ------- -------- ------- -----
Administrative Class
11/01/95 - 06/30/96 0.00 0.00 (1.60) 20.82 7.18
- --------------------------- ------ ------- -------- ------- -----
09/27/95 - 10/31/95 0.00 0.00 0.00 21.01 (5.34)
- --------------------------- ------ ------- -------- ------- -----
Columbus Circle Investors
Core Equity Fund
Institutional Class
11/01/95 - 06/30/96 $ 0.00 $ 0.00 $ (0.33) $ 13.55 9.41%
- --------------------------- ------ ------- -------- ------- -----
12/28/94 - 10/31/95 0.00 0.00 (0.06) 12.72 27.86
- --------------------------- ------ ------- -------- ------- -----
Administrative Class
11/01/95 - 06/30/96 0.00 0.00 (0.31) 13.56 9.23
- --------------------------- ------ ------- -------- ------- -----
05/31/95 - 10/31/95 0.00 0.00 (0.02) 12.73 11.34
- --------------------------- ------ ------- -------- ------- -----
Columbus Circle Investors
Mid Cap Equity Fund
Institutional Class
11/01/95 - 06/30/96 $ 0.00 $ 0.00 $ (0.37) $ 14.66 16.72%
- --------------------------- ------ ------- -------- ------- -----
12/28/94 - 10/31/95 0.00 0.00 (0.02) 12.92 29.34
- --------------------------- ------ ------- -------- ------- -----
Parametric Enhanced Equity
Fund
Institutional Class
11/01/95 - 06/30/96 $ 0.00 $ 0.00 $ (0.54) $ 15.91 14.21%
- --------------------------- ------ ------- -------- ------- -----
10/31/95 0.00 0.00 (0.42) 14.44 24.46
- --------------------------- ------ ------- -------- ------- -----
10/31/94 0.00 0.00 (0.30) 11.99 1.83
- --------------------------- ------ ------- -------- ------- -----
10/31/93 0.00 0.00 (0.65) 12.08 8.20
- --------------------------- ------ ------- -------- ------- -----
10/31/92 (0.06) 0.00 (0.26) 11.76 11.46
- --------------------------- ------ ------- -------- ------- -----
02/11/91 - 10/31/91 0.00 0.00 (0.16) 10.80 9.59
- --------------------------- ------ ------- -------- ------- -----
<CAPTION>
Ratio of Net
Ratio of Investment
Net Assets Expenses to Income to Portfolio Average
End of Period Average Net Average Net Turnover Commission
(000's) Assets Assets Rate Rate
<S> <C> <C> <C> <C> <C>
Cadence Mid Cap Growth
Fund Administrative Class
11/01/95 - 06/30/96 $ 1,071 0.95%* 0.89%* 78.81% $ 0.04
- --------------------------- --------- ---------- ---------- ---------- -------
11/30/94 - 10/31/95 892 0.94* 0.23* 71.73 N/A
- --------------------------- --------- ---------- ---------- ---------- -------
Cadence Micro Cap Growth
Fund Institutional Class
11/01/95 - 06/30/96 $83,973 1.50%* (0.45%)* 53.96% $ 0.02
- --------------------------- --------- ---------- ---------- ---------- -------
10/31/95 69,775 1.50 (0.37) 86.68 0.03
- --------------------------- --------- ---------- ---------- ---------- -------
10/31/94 32,605 1.50 (0.25) 58.81
- --------------------------- --------- ---------- ---------- ----------
06/25/93 - 10/31/93 10,827 1.50* (0.02)* 15.98
- --------------------------- --------- ---------- ---------- ----------
Administrative Class
04/01/96 - 06/30/96 566 1.73* (0.74)* 53.96 0.02
- --------------------------- --------- ---------- ---------- ---------- -------
Cadence Small Cap Growth
Fund Institutional Class
11/01/95 - 06/30/96 $32,954 1.25%* (0.20%)* 59.00% $ 0.02
- --------------------------- --------- ---------- ---------- ---------- -------
10/31/95 73,977 1.25 (0.27) 85.61 0.02
- --------------------------- --------- ---------- ---------- ---------- -------
10/31/94 50,425 1.25 (0.33) 65.53
- --------------------------- --------- ---------- ---------- ----------
10/31/93 43,308 1.25 (0.35) 62.15
- --------------------------- --------- ---------- ---------- ----------
10/31/92 33,734 1.25 0.09 66.05
- --------------------------- --------- ---------- ---------- ----------
01/07/91 - 10/31/91 33,168 1.29* 0.11* 47.84
- --------------------------- --------- ---------- ---------- ----------
Administrative Class
11/01/95 - 06/30/96 112 1.50* (0.41)* 59.00 0.02
- --------------------------- --------- ---------- ---------- ---------- -------
09/27/95 - 10/31/95 544 1.60* (0.82)* 8.80 N/A
- --------------------------- --------- ---------- ---------- ---------- -------
Columbus Circle Investors
Core Equity Fund
Institutional Class
11/01/95 - 06/30/96 $10,452 0.82%* 0.53%* 73.16% $ 0.04
- --------------------------- --------- ---------- ---------- ---------- -------
12/28/94 - 10/31/95 7,791 0.82* 0. 79* 122.88 0.03
- --------------------------- --------- ---------- ---------- ---------- -------
Administrative Class
11/01/95 - 06/30/96 33,575 1.07* 0.28* 73.16 0.04
- --------------------------- --------- ---------- ---------- ---------- -------
05/31/95 - 10/31/95 24,645 1.06* 0.34* 57.96 N/A
- --------------------------- --------- ---------- ---------- ---------- -------
Columbus Circle Investors
Mid Cap Equity Fund
Institutional Class
11/01/95 - 06/30/96 $ 8,378 0.88%* (0.32%)* 96.62% $ 0.03
- --------------------------- --------- ---------- ---------- ---------- -------
12/28/94 - 10/31/95 8,357 0.88* 0.24* 131.58 0.04
- --------------------------- --------- ---------- ---------- ---------- -------
Parametric Enhanced Equity
Fund
Institutional Class
11/01/95 - 06/30/96 $ 83,425 0.70%* 1.58%* 52.83% $0.05
- --------------------------- --------- ---------- ---------- ---------- -------
10/31/95 73,999 0.70 1.91 20.59 0.05
- --------------------------- --------- ---------- ---------- ---------- -------
10/31/94 65,915 0.70 2.20 43.58
- --------------------------- --------- ---------- ---------- ----------
10/31/93 46,724 0.70 1.89 15.02
- --------------------------- --------- ---------- ---------- ----------
10/31/92 36,515 0.70 1.81 16.85
- --------------------------- --------- ---------- ---------- ----------
02/11/91 - 10/31/91 4,451 0.73* 2.14* 0.15
- --------------------------- --------- ---------- ---------- ----------
</TABLE>
27
<PAGE>
FINANCIAL HIGHLIGHTS (Cont.)
<TABLE>
<CAPTION>
------------
Selected Per Share Data ------------ ---------- Net Realized/ ------------
for the Year or Period Ended: Net Asset Net Unrealized Total Income
Value Investment Gain from
Beginning of Income (Loss) on Investment
Period (Loss) Investments Operations
------------ ---------- ----------- ------------
<S> <C> <C> <C> <C>
Blairlogie Emerging Markets Fund
Institutional Class
11/01/95 - 06/30/96 $11.27 $ 0.03 $ 1.40 $ 1.43
- -------------------------------- ------ ------ ------ ------
10/31/95 16.53 0.07 (4.55) (4.48)
- -------------------------------- ------ ------ ------ ------
10/31/94 12.27 (0.01) 4.45 4.44
- -------------------------------- ------ ------ ------ ------
06/01/93 - 10/31/93 10.00 0.03 2.52 2.55
- -------------------------------- ------ ------ ------ ------
Administrative Class
11/01/95 - 06/30/96 11.24 0.02 (a) 1.40 (a) 1.42
- -------------------------------- ------ ------ ------ ------
10/31/95 16.95 0.00 (4.95) (4.95)
- -------------------------------- ------ ------ ------ ------
Blairlogie International Active
Fund Institutional Class
11/01/95 - 06/30/96 $11.74 $ 0.72 $ 0.72 $ 1.44
- -------------------------------- ------ ------ ------ ------
10/31/95 11.86 0.10 0.30 0.40
- -------------------------------- ------ ------ ------ ------
10/31/94 10.69 0.09 1.15 1.24
- -------------------------------- ------ ------ ------ ------
06/08/93 - 10/31/93 10.00 0.05 0.69 0.74
- -------------------------------- ------ ------ ------ ------
Administrative Class
11/01/95 - 06/30/96 11.73 0.69 (a) 0.72 (a) 1.41
- -------------------------------- ------ ------ ------ ------
11/30/94 - 10/31/95 11.21 0.02 1.01 1.03
- -------------------------------- ------ ------ ------ ------
Balanced Fund
Institutional Class
11/01/95 - 06/30/96 $ 11.89 $ 0.27 $ 0.76 $ 1.03
- -------------------------------- ------ ------ ------ ------
10/31/95 10.35 0.44 1.54 1.98
- -------------------------------- ------ ------ ------ ------
10/31/94 10.84 0.34 (0.34) 0.00
- -------------------------------- ------ ------ ------ ------
10/31/93 10.42 0.35 0.68 1.03
- -------------------------------- ------ ------ ------ ------
06/25/92 - 10/31/92 10.00 0.12 0.52 0.64
- -------------------------------- ------ ------ ------ ------
</TABLE>
FINANCIAL HIGHLIGHTS (Cont.)
<TABLE>
<CAPTION>
---------- ------------- -------------
Selected Per Share Data Dividends Dividends in Distributions
for the Year or Period Ended: from Net Excess of Net from Net
Investment Investment Realized
Income Income Capital Gains
---------- ------------- -------------
<S> <C> <C> <C>
Blairlogie Emerging Markets Fund
Institutional Class
11/01/95 - 06/30/96 $(0.04) $ 0.00 $ 0.00
- -------------------------------- ------ ------ ------
10/31/95 (0.06) 0.00 (0.72)
- -------------------------------- ------ ------ ------
10/31/94 0.00 0.00 (0.18)
- -------------------------------- ------ ------ ------
06/01/93 - 10/31/93 (0.02) 0.00 (0.26)
- -------------------------------- ------ ------ ------
Administrative Class
11/01/95 - 06/30/96 (0.03) 0.00 0.00
- -------------------------------- ------ ------ ------
10/31/95 (0.05) 0.00 (0.71)
- -------------------------------- ------ ------ ------
Blairlogie International Active
Fund Institutional Class
11/01/95 - 06/30/96 $(0.07) $(0.36) $(0.21)
- -------------------------------- ------ ------ ------
10/31/95 (0.09) 0.00 (0.43)
- -------------------------------- ------ ------ ------
10/31/94 (0.03) 0.00 (0.04)
- -------------------------------- ------ ------ ------
06/08/93 - 10/31/93 (0.04) 0.00 (0.01)
- -------------------------------- ------ ------ ------
Administrative Class
11/01/95 - 06/30/96 (0.07) (0.35) (0.21)
- -------------------------------- ------ ------ ------
11/30/94 - 10/31/95 (0.08) 0.00 (0.43)
- -------------------------------- ------ ------ ------
Balanced Fund
Institutional Class
11/01/95 - 06/30/96 $(0.27) $ 0.00 $(1.01)
- -------------------------------- ------ ------ ------
10/31/95 (0.44) 0.00 0.00
- -------------------------------- ------ ------ ------
10/31/94 (0.34) 0.00 (0.15)
- -------------------------------- ------ ------ ------
10/31/93 (0.35) 0.00 (0.26)
- -------------------------------- ------ ------ ------
06/25/92 - 10/31/92 (0.12) 0.00 (0.10)
- -------------------------------- ------ ------ ------
</TABLE>
* Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
Periods ending prior to 06/30/96 were audited by other independent accountants.
See Notes to Financial Statements
28
<PAGE>
FINANCIAL HIGHLIGHTS (Cont.)
<TABLE>
<CAPTION>
------------- ------------ ------------ -------------
Selected Per Share Data Net Asset Net Assets
for the Year or Period Ended: Total Value End of End of Period
Distributions Period Total Return (000's)
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Blairlogie Emerging Markets Fund
Institutional Class
11/01/95 - 06/30/96 $(0.04) $ 12.66 12.70% $80,545
- -------------------------------- ------ ------- ------ -------
10/31/95 (0.78) 11.27 (27.70) 73,539
- -------------------------------- ------ ------- ------ -------
10/31/94 (0.18) 16.53 36.31 79,620
- -------------------------------- ------ ------- ------ -------
06/01/93 - 10/31/93 (0.28) 12.27 25.55 14,625
- -------------------------------- ------ ------- ------ -------
Administrative Class
11/01/95 - 06/30/96 (0.03) 12.63 12.70 368
- -------------------------------- ------ ------- ------ -------
10/31/95 (0.76) 11.24 (27.96) 830
- -------------------------------- ------ ------- ------ -------
Blairlogie International Active
Fund Institutional Class
11/01/95 - 06/30/96 $(0.64) $ 12.54 12.54% $70,207
- -------------------------------- ------ ------- ------ -------
10/31/95 (0.52) 11.74 3.83 63,607
- -------------------------------- ------ ------- ------ -------
10/31/94 (0.07) 11.86 11.68 22,569
- -------------------------------- ------ ------- ------ -------
06/08/93 - 10/31/93 (0.05) 10.69 7.39 8,299
- -------------------------------- ------ ------- ------ -------
Administrative Class
11/01/95 - 06/30/96 (0.63) 12.51 12.33 5,624
- -------------------------------- ------ ------- ------ -------
11/30/94 - 10/31/95 (0.51) 11.73 9.61 675
- -------------------------------- ------ ------- ------ -------
Balanced Fund
Institutional Class
11/01/95 - 06/30/96 $(1.28) $11.64 9.07% $ 82,562
- -------------------------------- ------ ------- ------ -------
10/31/95 (0.44) 11.89 19.47 72,638
- -------------------------------- ------ ------- ------ -------
10/31/94 (0.49) 10.35 0.08 130,694
- -------------------------------- ------ ------- ------ -------
10/31/93 (0.61) 10.84 10.06 126,410
- -------------------------------- ------ ------- ------ -------
06/25/92 - 10/31/92 (0.22) 10.42 6.40 99,198
- -------------------------------- ------ ------- ------ -------
</TABLE>
FINANCIAL HIGHLIGHTS (Cont.)
<TABLE>
<CAPTION>
----------- ------------ --------- ----------
Ratio of Net
Selected Per Share Data Ratio of Investment
for the Year or Period Ended: Expenses to Income to Portfolio Average
Average Net Average Net Turnover Commission
Assets Assets Rate Rate
----------- ----------- --------- ----------
<S> <C> <C> <C> <C>
Blairlogie Emerging Markets Fund
Institutional Class
11/01/95 - 06/30/96 1.35%* 0.84%* 74.04% $0.01
- -------------------------------- ----- ----- ------ -----
10/31/95 1.35 0.57 118.18 0.03
- -------------------------------- ----- ----- ------ -----
10/31/94 1.35 (0.06) 79.04
- -------------------------------- ----- ----- ------
06/01/93 - 10/31/93 1.34* 0.64* 36.51
- -------------------------------- ----- ----- ------
Administrative Class
11/01/95 - 06/30/96 1.61* 0.18* 74.04 0.01
- -------------------------------- ----- ----- ------ -----
10/31/95 1.62 0.02 118.18 N/A
- -------------------------------- ----- ----- ------ -----
Blairlogie International Active
Fund Institutional Class
11/01/95 - 06/30/96 1.10%* 0.81%* 59.56% $0.02
- -------------------------------- ----- ----- ------ -----
10/31/95 1.10 1.10 63.12 0.03
- -------------------------------- ----- ----- ------ -----
10/31/94 1.10 1.12 88.55
- -------------------------------- ----- ----- ------
06/08/93 - 10/31/93 1.10* 0.91* 19.61
- -------------------------------- ----- ----- ------
Administrative Class
11/01/95 - 06/30/96 1.35* 1.04* 59.56 0.02
- -------------------------------- ----- ----- ------ -----
11/30/94 - 10/31/95 1.34* 0.50* 58.07 N/A
- -------------------------------- ----- ----- ------ -----
Balanced Fund
Institutional Class
11/01/95 - 06/30/96 0.70%* 3.46%* 139.59% $ 0.05
- -------------------------------- ----- ----- ------ -----
10/31/95 0.70 3.73 43.10 0.04
- -------------------------------- ----- ----- ------ -----
10/31/94 0.70 3.25 46.72
- -------------------------------- ----- ----- ------
10/31/93 0.70 3.10 19.32
- -------------------------------- ----- ----- ------
06/25/92 - 10/31/92 0.70* 3.36* 38.51
- -------------------------------- ----- ----- ------
</TABLE>
29
<PAGE>
SCHEDULE OF INVESTMENTS
NFJ Equity Income Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
- --------------------------------------------------------------------------------
Common Stocks - 98.4%
- --------------------------------------------------------------------------------
<S> <C> <C>
Capital Goods - 2.0%
GATX Corp. 50,000 $ 2,413
Consumer Discretionary - 16.0%
Brunswick Corp. 118,500 2,370
Chrysler Corp. 38,180 2,367
Ford Motor Co. 73,900 2,393
Harland (John H.) Co. 100,100 2,465
J.C. Penney Co., Inc. 47,400 2,489
Maytag Corp. 117,300 2,449
Springs Industries, Inc. 51,800 2,616
Xerox Corp. 46,000 2,461
--------
19,610
Consumer Staples - 7.8%
Anheuser Busch 32,100 2,408
Philip Morris Co., Inc. 23,100 2,402
RJR Nabisco Holdings Corp. 74,600 2,313
Supervalu, Inc. 76,100 2,397
--------
9,520
Energy - 9.6%
Amoco Corp. 33,400 2,417
Atlantic Richfield Co. 20,300 2,406
Repsol 68,600 2,384
Ultramar Corp. 159,800 4,634
--------
11,841
Financial & Business Services - 19.6%
Aetna Life & Casualty Co. 33,600 2,402
Bankers Trust N.Y. Corp. 33,200 2,453
Bear Stearns Cos. 195,187 4,611
Chase Manhattan Corp. 34,656 2,448
Meditrust 73,600 2,456
Mellon Bank Corp. 42,600 2,428
PHH Corp. 43,500 2,480
PNC Bank Corp. 78,300 2,329
Provident Cos. Inc. 66,200 2,449
--------
24,056
Health Care - 8.0%
American Home Products 41,000 2,465
Baxter International, Inc. 50,800 2,400
Bristol Myers Squibb 26,900 2,421
Pharmacia & Upjohn, Inc. 56,795 2,520
--------
9,806
Materials & Processing - 9.5%
Dow Chemical 30,200 2,295
Phelps Dodge Corp. 73,500 4,585
Potlatch Corp. 62,500 2,445
PPG Industries, Inc. 49,000 2,389
--------
11,714
Technology - 5.9%
Harris Corp. 40,400 2,464
Northrop Grumman Corp. 70,600 4,810
--------
7,274
Utilities - 20.0%
DTE Energy Co. 79,400 2,451
NICOR, Inc. 87,700 2,488
P.P. & L. Resources, Inc. 103,200 2,438
Pacific Gas & Electric 108,200 2,516
Pacific Telesis 73,000 2,464
Peoples Energy Corp. 72,500 2,429
Southern New England
Telecommunications Corp. 58,100 2,440
Sprint Corp. 58,200 2,444
U.S. West Communications Group 77,500 2,470
Washington Water Power 131,900 2,457
--------
24,597
--------
Total Common Stocks 120,831
(Cost $103,159) --------
- --------------------------------------------------------------------------------
Short-Term Instruments - 0.0%
- --------------------------------------------------------------------------------
Principal
Amount
(000's)
Repurchase Agreement - 0.0%
State Street Bank $ 32 32
4.000% due 07/01/96
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 9.250% due
02/15/16 valued at $32,030.
Repurchase proceeds are $32,011.)
--------
Total Short-Term Instruments 32
(Cost $32) ========
Total Investments (a) - 98.4% $120,863
(Cost $103,191)
Other Assets and Liabilities (Net) - 1.6% 1,948
--------
Net Assets - 100.0% $122,811
========
Notes to Schedule of Investments ($ in thousands):
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of
value over tax cost. $ 18,989
Aggregate gross unrealized depreciation for all
investments in which there was an excess of
tax cost over value. (1,338)
--------
Unrealized appreciation-net $ 17,651
========
</TABLE>
See Notes to Financial Statements
30
<PAGE>
SCHEDULE OF INVESTMENTS
NFJ Diversified Low P/E Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
- --------------------------------------------------------------------------------
Common Stocks - 93.0%
- --------------------------------------------------------------------------------
<S> <C> <C>
Capital Goods - 1.8%
Deere & Co. 23,600 $ 944
Consumer Discretionary - 15.7%
Brunswick Corp. 23,200 464
Chrysler Corp. 22,105 1,371
Dillard Department Stores 26,500 967
Goodyear Tire & Rubber 17,900 864
Maytag Corp. 67,900 1,417
Reebok International Limited 14,600 491
Tandy Corp. 10,200 483
Tupperware Corp. (b) 11,000 465
Washington Post Co. 2,700 875
Xerox Corp. 16,500 883
-------
8,280
Consumer Staples - 10.5%
Anheuser Busch 18,900 1,418
IBP, Inc. 30,100 832
Philip Morris Co., Inc. 13,400 1,394
Supervalu, Inc. 29,800 939
Unilever NV 6,600 958
-------
5,541
Energy - 10.9%
Amoco Corp. 20,000 1,448
Atlantic Richfield Co. 8,100 960
Repsol SA ADR 41,400 1,439
Ultramar Corp. 48,000 1,392
Union Texas Petroleum Holdings, Inc. 24,600 480
-------
5,719
Financial & Business Services - 14.6%
Bear Stearns Cos. 38,850 918
Chase Manhattan Corp. 19,984 1,411
Loews Corp. 10,400 820
Mellon Bank Corp. 22,400 1,277
PHH Corp. 25,900 1,476
Provident Cos., Inc. 24,300 899
Standard Federal Bancorp. 23,200 893
-------
7,694
Health Care - 9.0%
American Home Products 23,700 1,425
Beckman Instruments 26,200 996
Pharmacia & Upjohn, Inc. 33,010 1,465
Tenet Healthcare Corp. (b) 40,400 863
-------
4,749
Materials & Processing - 7.9%
Lennar Corp. 37,250 931
Phelps Dodge Corp. 22,100 1,378
Union Carbide Corp. 24,400 970
Wellman, Inc. 20,300 475
Willamette Industries 7,200 427
-------
4,181
Technology - 8.1%
Harris Corp. 7,500 458
Mentor Graphics Corp. (b) 29,200 475
Northrop Grumman Corp. 13,800 940
Raytheon Co. 18,400 950
Seagate Technology (b) 22,000 990
Teradyne, Inc. (b) 28,100 484
-------
4,297
Transportation - 4.1%
AMR Corp. (b) 10,600 $ 965
Conrail, Inc. 17,900 1,187
-------
2,152
Utilities - 10.4%
DTE Energy Co. 39,000 1,204
NICOR, Inc. 32,800 931
Pacific Gas & Electric 40,200 935
Pacific Telesis 26,900 908
Sprint Corp. 35,200 1,477
-------
5,455
-------
Total Common Stocks 49,012
(Cost $45,852) =======
- --------------------------------------------------------------------------------
Short-Term Instruments - 12.5%
- --------------------------------------------------------------------------------
Principal
Amount
(000's)
Repurchase Agreement - 12.5%
State Street Bank $ 6,594 6,594
4.000% due 07/01/96
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 9.250% due 02/15/16
valued at $6,726,300. Repurchase
proceeds are $6,596,198.)
-------
Total Short-Term Instruments 6,594
(Cost $6,594) =======
Total Investments (a) - 105.5% $55,606
(Cost $52,446)
Other Assets and Liabilities (Net) - (5.5%) (2,879)
-------
Net Assets - 100.0% $52,727
=======
Notes to Schedule of Investments ($ in thousands):
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 3,358
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (213)
-------
Unrealized appreciation-net $ 3,145
=======
</TABLE>
(b) Non-income producing security.
See Notes to Financial Statements
31
<PAGE>
SCHEDULE OF INVESTMENTS
NFJ Small Cap Value Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
- ----------------------------------------------------------
Common Stocks - 94.1%
- ----------------------------------------------------------
Capital Goods - 10.5%
<S> <C> <C>
Barnes Group, Inc. 6,400 $ 327
Blount International, Inc. 'A' 9,800 309
Brenco, Inc. 20,900 337
Kysor Industrial Corp. 12,700 308
Oshkosh Truck Corp. 'B' 22,900 323
Regal Beloit 16,100 318
Scotsman Industries, Inc. 15,800 318
Smith (A.O.) Corp. 12,500 313
Tecumseh Products Co. 'A' 6,000 323
Varlen Corp. 13,750 289
Webb Corp. 18,100 362
-------
3,527
Consumer Discretionary - 10.4%
Blair Corp. 13,000 307
Borg Warner Automotive 8,200 324
Ennis Business Forms, Inc. 28,500 324
Fedders USA, Inc. 48,000 342
Garan, Inc. 18,900 321
Guilford Mills, Inc. 13,000 325
Harman International 6,600 325
Outboard Marine Corp. 16,600 301
Shopko Stores, Inc. 20,900 337
Stanhome, Inc. 11,000 292
Toro Co. 9,000 298
-------
3,496
Consumer Services - 1.9%
Bowne & Co., Inc. 14,700 303
Merrill Corp. 13,500 338
-------
641
Consumer Staples - 7.6%
Bindley Western Industries, Inc. 19,400 325
Dimon, Inc. 18,100 335
Fay's, Inc. 40,900 322
International Multifoods 17,400 318
Marsh Supermarkets, Inc. 'B' 28,400 334
Morningstar Group, Inc. (b) 28,900 322
Nash Finch Co. 17,800 285
Super Foods Services, Inc. 32,000 304
-------
2,545
Energy - 4.8%
Diamond Shamrock 10,700 309
KCS Energy, Inc. 10,900 313
Offshore Logistics, Inc. (b) 24,400 339
Swift Energy Co. (b) 18,000 324
World Fuel Services Corp. 17,000 308
-------
1,593
Financial & Business Services - 22.1%
Alex Brown, Inc. 6,400 362
American Bankers Insurance Group 7,000 305
American Health Properties 14,400 319
Capstead Mortgage Corp. 11,400 318
Collective BanCorp., Inc. 13,700 324
Commercial Federal Corp. 8,600 329
Cullen/Frost Bankers, Inc. 11,400 316
Eaton Vance Corp. 9,000 326
First Commerce Corp. 8,600 304
First Financial Corp. Wisconsin 15,300 344
Firstbank Puerto Rico 14,900 343
Fremont General 13,600 313
Glimcher Realty Trust 18,000 304
Hibernia Corp. 'A' 17,600 191
Inter-Regional Financial Group 13,050 339
Investors Financial Services Corp. 'A' 575 13
McGrath Rentcorp. 15,800 356
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (000's)
==========================================================
<S> <C> <C>
Morgan Keegan, Inc. 24,450 $ 324
Orion Capital Corp. 6,800 347
Pioneer Financial Services, Inc. 20,000 333
Raymond James Financial Corp. 14,400 326
South West Property Trust 23,000 308
Sovereign Bancorp, Inc. 32,750 328
U.S. Facilities 18,900 328
-------
7,400
Health Care - 3.0%
Allied Healthcare Products 24,100 223
Bergen Brunswig 'A' 11,315 314
Health Images, Inc. 15,900 185
ICN Pharmaceuticals, Inc. 12,124 282
-------
1,004
Materials & Processing - 16.2%
Amcast Industrial Corp. 17,400 352
Butler Manufacturing Co. 9,150 309
Caraustar Industries, Inc. 12,500 331
Castle (A.M.) & Co. 12,725 301
Cleveland Cliffs, Inc. 8,500 333
Commercial Metals 10,200 339
Continental Homes 14,500 312
First Mississippi 13,500 300
Gencorp 22,100 334
Kaman Corp. 26,800 271
Mosinee Paper Corp. 11,800 316
Nacco Industries, Inc. 5,600 310
Quanex Corp. 13,800 326
Standard Motor Products 17,500 313
Texas Industries, Inc. 4,800 329
Wellman, Inc. 13,700 320
Zeigler Coal Holding Co. 19,900 318
-------
5,414
Technology - 6.0%
Computer Data Systems, Inc. 600 13
Dallas Semiconductor Corp. 17,000 308
Innovex, Inc. 14,800 261
MacNeal-Schwendler Corp. 24,700 185
MTS Systems Corp. 16,500 347
Pioneer Standard Electronics 22,200 294
Thiokol Corp. 8,300 328
Wyle Electronics 8,000 264
-------
2,000
Transportation - 3.8%
APL Ltd. 12,000 314
Coachman Industries 8,500 298
Sea Containers Limited 'A' 17,200 327
Winnebago Industries 39,200 322
-------
1,261
Utilities - 7.8%
Central Hudson Gas & Electric 10,400 325
Commonwealth Energy System 13,800 355
Eastern Utilities Associates 16,700 328
Energen Corp. 13,800 305
Lincoln Telecommunications 19,400 318
Rochester Gas & Electric 15,600 335
Southern California Water Co. 14,600 321
United Illuminating 8,600 320
-------
2,607
-------
Total Common Stocks 31,488
=======
(Cost $27,608)
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000's) (000's)
- -----------------------------------------------------------
Short-Term Instruments - 5.8%
- -----------------------------------------------------------
<S> <C> <C>
Repurchase Agreement - 5.8%
State Street Bank $1,929 $ 1,929
4.000% due 07/01/96
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 8.750% due 11/15/08
valued at $1,969,225. Repurchase
proceeds are $1,929,643.)
--------
Total Short-Term Instruments 1,929
========
(Cost $1,929)
Total Investments (a) - 99.9% $33,417
(Cost $29,537)
Other Assets and Liabilities (Net) - 0.1% 33
--------
Net Assets - 100.0% $33,450
========
</TABLE>
Notes to Schedule of Investments ($ in thousands):
<TABLE>
<S> <C> <C>
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 4,914
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (1,163)
--------
Unrealized appreciation-net $ 3,751
========
(b) Non-income producing security.
</TABLE>
See Notes to Financial Statements
33
<PAGE>
SCHEDULE OF INVESTMENTS
Cadence Capital Appreciation Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
- --------------------------------------------------------------
Common Stocks - 87.8%
- --------------------------------------------------------------
Capital Goods - 7.3%
<S> <C> <C>
Allied Signal, Inc. 93,500 $ 5,341
Johnson Controls, Inc. 65,500 4,552
Rockwell International Corp. 91,200 5,221
Sundstrand Corp. 124,600 4,563
United Technologies 48,700 5,601
--------
25,278
Consumer Discretionary - 12.6%
Black & Decker Corp. 103,500 3,998
Chrysler Corp. 80,400 4,985
Dayton Hudson Corp. 41,100 4,238
Gap, Inc. 136,700 4,391
Harley Davidson, Inc. 102,700 4,224
Mattel, Inc. 205,945 5,895
Nike, Inc. 59,500 6,114
Omnicom Group 101,600 4,724
TJX Cos., Inc. 156,300 5,275
--------
43,844
Consumer Services - 2.7%
La Quinta Inns, Inc. 159,500 5,343
Mirage Resorts (b) 78,100 4,217
--------
9,560
Consumer Staples - 4.0%
Albertson's, Inc. 107,400 4,444
Kroger Co. (b) 123,400 4,874
Safeway, Inc. (b) 144,000 4,752
--------
14,070
Energy - 3.9%
British Petroleum - ADR 40,400 4,318
Ensco International (b) 140,200 4,557
Vastar Resources, Inc. 123,200 4,605
--------
13,480
Financial & Business Services - 24.2%
Advanta Corp. 'B' 78,000 3,530
American Express 85,400 3,811
Bank of Boston Corp. 73,800 3,653
Bankamerica Corp. 53,100 4,022
Bear Stearns Cos. 176,885 4,179
Chase Manhattan Corp. 58,300 4,117
Citicorp 41,900 3,462
Equitable Cos., Inc. 158,900 3,953
Federal Home Loan Mortgage 50,400 4,309
First Chicago Corp. 84,702 3,314
First Tennessee National Corp. 42,600 1,306
First Union Corp. 67,900 4,133
Fleet Financial Group, Inc. 95,300 4,146
National City Corp. 112,300 3,945
NationsBank Corp. 51,400 4,247
Norwest Corp. 109,900 3,833
PNC Bank Corp. 130,595 3,885
Southtrust Corp. 145,700 4,098
TIG Holdings, Inc. 134,200 3,892
Transamerica Corp. 53,900 4,366
Travelers Group, Inc. 98,800 4,508
Wells Fargo & Co. 16,033 3,830
--------
84,539
Health Care - 12.0%
American Home Products 106,600 6,409
Boston Scientific Corp. (b) 103,000 4,635
Eli Lilly & Co. 73,500 4,778
HBO & Co. 85,300 5,779
Medtronic, Inc. 79,400 4,446
Pharmacia & Upjohn, Inc. 110,400 4,899
Rhone-Poulenc Rorer, Inc. 71,900 4,826
Schering-Plough 98,600 6,187
--------
41,959
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (000's)
- --------------------------------------------------------------
<S> <C> <C>
Materials & Processing - 3.7%
IMC Global, Inc. 110,200 $ 4,146
Millipore Corp. 97,000 4,062
Textron, Inc. 59,700 4,769
--------
12,977
Technology - 8.9%
Adaptec, Inc. (b) 104,100 4,932
Andrew Corp. (b) 116,950 6,286
Computer Associates International, Inc. 70,900 5,052
Gateway 2000, Inc. (b) 124,100 4,219
Tyco Labs 118,000 4,809
U.S. Robotics Corp. 65,900 5,634
--------
30,932
Transportation - 1.4%
Continental Airlines 'B' (b) 78,700 4,860
Utilities - 7.1%
Ameritech 70,100 4,162
American Electric Power, Inc. 101,800 4,339
Bell South 104,900 4,445
General Public Utilities 120,400 4,244
Nynex Corp. 76,100 3,614
Texas Utilities Co. 94,100 4,022
--------
24,826
--------
Total Common Stocks 306,325
========
(Cost $255,676)
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------
Short-Term Instruments - 10.6%
- --------------------------------------------------------------
Principal
Amount
(000's)
Repurchase Agreement - 10.6%
<S> <C> <C>
State Street Bank $ 36,711 36,711
4.000% due 07/01/96
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 8.750% due 11/15/08
valued at $37,449,325. Repurchase
proceeds are $36,723,237.)
--------
Total-Short Term Instruments 36,711
========
(Cost $36,711)
Total Investments (a) - 98.4% $343,036
(Cost $292,387)
Other Assets and Liabilities (Net) - 1.6% 5,692
--------
Net Assets - 100.0% $348,728
========
</TABLE>
Notes to Schedule of Investments ($ in thousands):
<TABLE>
<CAPTION>
<S> <C>
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 52,003
Aggregated gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (1,354)
--------
Unrealized appreciation-net $ 50,649
========
</TABLE>
(b) Non-income producing security.
See Notes to Financial Statements
34
<PAGE>
SCHEDULE OF INVESTMENTS
Cadence Mid Cap Growth Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
- -------------------------------------------------------------------------------
Common Stock's - 94.8%
- -------------------------------------------------------------------------------
<S> <C> <C>
Capital Goods - 11.9%
Belden, Inc. 112,000 $ 3,360
EG&G, Inc. 126,400 2,702
Harnischfeger Industries, Inc. 79,700 2,650
Mark IV Industries, Inc. 110,711 2,505
McDonnell Douglas 76,300 3,701
Raychem Corp. 54,600 3,924
Stolt-Nielsen SA - ADR 100 2
Stolt-Nielsen SA 140,900 2,554
United Dominion Industries 116,500 2,680
York International Corp. 65,800 3,405
-------
27,483
Consumer Discretionary - 11.0%
Callaway Golf Co. 129,400 4,303
Consolidated Stores Corp. (b) 65,300 2,400
Dollar General Corp. 78,900 2,308
First Brands Corp. 145,100 3,918
Liz Claiborne, Inc. 78,400 2,715
Mattel, Inc. 131,589 3,767
Omnicom Group 62,100 2,888
Tiffany & Co. 45,700 3,336
-------
25,635
Consumer Services - 4.8%
Lennar Corp. 113,600 2,840
Oakwood Homes 129,300 2,667
Promus Hotel Corp. (b) 97,800 2,897
Redman Industries, Inc. (b) 135,900 2,820
-------
11,224
Consumer Staples - 2.8%
Kroger Co. (b) 86,300 3,409
Richfood Holdings, Inc. 96,800 3,146
-------
6,555
Energy - 2.6%
Reading & Bates Corp. (b) 131,800 2,916
Tosco Corp. 63,000 3,166
-------
6,082
Financial & Business Services - 30.8%
Advanta Corp. 'A' 47,650 2,430
Allmerica Financial Corp. 109,100 3,246
American Re Corp. 64,400 2,890
Bank of Boston Corp. 40,100 1,985
Baybanks, Inc. 19,200 2,069
Citizens Corp. 141,900 2,661
Comdisco, Inc. 120,650 3,212
Countrywide Credit Industries, Inc. 111,600 2,762
Crestar Financial Corp. 49,800 2,658
Cullen/Frost Bankers, Inc. 98,300 2,728
Equifax 112,800 2,961
Finova Group, Inc. 52,000 2,535
First American Corp. 54,100 2,279
First Commerce Corp. 63,700 2,253
First USA, Inc. 40,500 2,228
Green Tree Financial Corp. 88,400 2,763
Mark Twain Bancshares, Inc. 62,000 2,294
Mid Ocean Limited 70,300 2,882
Mutual Risk Management Limited 92,699 2,897
NAC Re Corp. 77,900 2,610
Penncorp Financial Group, Inc. 71,100 2,257
Protective Life Corp. 75,800 2,662
Southern National Corp. 100,600 3,194
Summit Bancorp. 76,060 2,672
SunAmerica, Inc. 59,450 3,359
The Money Store 103,200 2,283
Trustmark Corp. 17,000 357
Union Planters Corp. 80,100 2,433
-------
71,560
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (000's)
- -------------------------------------------------------------
<S> <C> <C>
Health Care - 11.1%
Beckman Instruments 75,900 $ 2,884
Boston Scientific Corp. (b) 61,100 2,750
Genzyme Corp. (b) 50,700 2,548
Guidant Corp. 50,500 2,487
HBO & Co. 55,400 3,753
Health Management Associates 'A' (b) 177,975 3,604
Ornda Healthcorp (b) 105,300 2,527
Sybron Corp. (b) 109,800 2,745
Watson Pharmaceutical, Inc. (b) 61,900 2,344
-------
25,642
Materials & Processing - 5.7%
Bemis, Inc. 86,800 3,038
Cytec Industries, Inc. (b) 43,500 3,719
Praxair, Inc. 89,000 3,760
Texas Industries, Inc. 40,000 2,745
-------
13,262
Technology - 10.0%
Analog Devices (b) 108,400 2,764
Ascend Communications, Inc. (b) 46,900 2,638
Cadence Designs Systems, Inc. (b) 82,400 2,780
Ceridian Corp. (b) 71,200 3,596
Credence Systems Co. (b) 8,160 110
McAfee Associates, Inc. (b) 71,700 3,513
MEMC Electronic Materials, Inc. (b) 57,200 2,217
Parametric Technology Corp. (b) 87,200 3,782
Structural Dynamics Research (b) 81,000 1,781
-------
23,181
Transportation - 1.7%
America West Airlines (b) 173,600 3,818
Utilities - 2.4%
Allegheny Power System 93,100 2,874
Portland General Corp. 84,300 2,602
-------
5,476
-------
Total Common Stocks 219,918
=======
(Cost $188,778)
</TABLE>
- ------------------------------------------------------------
Short-Term Instruments - 5.1%
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000's)
<S> <C> <C>
Repurchase Agreement - 5.1%
State Street Bank $ 11,937 11,937
4.000% due 07/01/96
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 8.750% due 11/15/08
valued at $12,178,550. Repurchase
proceeds are $11,940,979.)
-------
Total Short-Term Instruments 11,937
=======
(Cost $11,937)
Total Investments (a) - 99.9% $231,855
(Cost $200,715)
Other Assets and Liabilities (Net) - 0.1% 227
-------
Net Assets - 100.0% $232,082
=======
</TABLE>
35
<PAGE>
SCHEDULE OF INVESTMENTS (Cont.)
Cadence Mid Cap Growth Fund
June 30, 1996
- -------------------------------------------------------------------------------
Notes to Schedule of Investments ($ in thousands):
<TABLE>
<CAPTION>
<S> <C>
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 34,851
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (3,925)
----------
Unrealized appreciation-net $ 30,926
==========
</TABLE>
(b) Non-income producing security.
See Notes to Financial Statements
36
<PAGE>
SCHEDULE OF INVESTMENTS
Cadence Micro Cap Growth Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
- ------------------------------------------------------------
Common Stocks - 95.9%
- ------------------------------------------------------------
<S> <C> <C>
Capital Goods - 9.1%
Gardner Denver Machinery, Inc. (b) 57,400 $ 1,514
Hughes Supply, Inc. 33,900 1,178
LSI Industries, Inc. 75,000 1,294
NCI Building Systems, Inc. (b) 39,150 1,321
Shaw Group, Inc. (b) 27,500 519
Watsco, Inc. 'A' 90,000 1,890
---------
7,716
Consumer Discretionary - 8.1%
Culp, Inc. 123,350 1,665
Custom Chrome, Inc. (b) 60,900 1,637
Day Runner, Inc. (b) 40,100 1,038
Duckwall-ALCO Stores, Inc. (b) 80,900 1,193
Orchard Supply Hardware Store (b) 42,300 1,274
---------
6,807
Consumer Services - 19.6%
All American
Communications, Inc. 'B'(b) 163,600 1,391
Ameristar Casinos, Inc. (b) 80,000 1,040
Aaron Rents, Inc. 'B' 108,200 1,366
Anchor Gaming (b) 27,000 1,627
Carmike Cinemas, Inc. (b) 34,700 937
Fresh America Corp. (b) 50,500 688
Ha-Lo Industries, Inc. (b) 53,700 1,396
M/I Schottenstein Homes, Inc. (b) 50,000 463
Penn National Gaming, Inc. (b) 75,700 1,684
Saga Communications, Inc. (b) 68,775 1,487
Sodak Gaming, Inc. (b) 44,800 1,366
United Video Satellite (b) 97,400 2,044
Youth Services International, Inc. (b) 59,750 1,061
---------
16,550
Consumer Staples - 5.3%
Foodbrands America, Inc. (b) 27,500 354
Morningstar Group, Inc. (b) 125,000 1,391
Sylvan, Inc. (b) 84,200 1,126
Riser Foods, Inc. 68,500 1,644
---------
4,515
Energy - 2.9%
Giant Industries 91,100 1,321
ICO, Inc. 208,000 1,170
---------
2,491
Financial & Business Services - 14.9%
Aames Financial Corp. 29,550 1,060
Chittenden Corp. 51,055 1,149
Community First Bankshares 45,400 1,067
Dime Financial Corp. 71,000 1,083
Graphic Industries 95,500 907
Peoples Heritage Financial Group 46,400 945
Pioneer Financial Services, Inc. 60,700 1,009
Provident Bankshares Corp. 31,174 1,029
Right Management Consultants (b) 31,200 1,139
Titan Holdings, Inc. 60,830 852
Vermont Financial Services Corp. 31,100 980
Warren Bancorp., Inc. 109,700 1,371
---------
12,591
Health Care - 11.3%
Conmed Corp. (b) 60,000 1,598
Health Images, Inc. 144,200 1,676
International Remote
Imaging Systems (b) 170,000 1,562
Rexall Sundown, Inc. (b) 73,650 1,989
Rotech Medical Corp. (b) 56,000 1,092
Vitalink Pharmacy Service (b) 70,100 1,630
---------
9,547
Materials & Processing - 3.8%
Castle (A.M.) & Co. 80,000 $ 1,890
Roanoke Electric Steel Corp. 96,550 1,339
---------
3,229
Technology - 19.3%
Barra, Inc. (b) 58,900 1,517
Bel Fuse, Inc. (b) 90,800 1,532
Ciber, Inc. (b) 75,000 1,650
Compucom Systems, Inc. (b) 151,100 1,643
Computer Data Systems, Inc. 60,500 1,346
Gelman Sciences, Inc. (b) 70,000 1,584
Ikos Systems, Inc. (b) 74,900 1,582
Quickturn Design Systems, Inc. (b) 104,300 1,512
STB Systems, Inc. 115,800 1,983
TCSI Corp. (b) 80,000 1,930
---------
16,279
Transportation - 1.6%
Atlantic Coast Airlines, Inc. (b) 105,400 1,377
---------
Total Common Stocks 81,102
---------
(Cost $58,852)
<CAPTION>
- ------------------------------------------------------------
Short -Term Instruments - 4.5%
- ------------------------------------------------------------
Principal
Amount
(000's)
<S> <C> <C>
Repurchase Agreement - 4.5%
State Street Bank $ 3,763 3,763
4.000% due 07/01/96
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 8.750% due 11/15/08
valued at $3,841,975. Repurchase
proceeds are $3,764,254.)
---------
Total Short-Term Instruments 3,763
---------
(Cost $3,763)
Total Investments (a) - 100.4% $ 84,865
(Cost $62,615)
Other Assets and Liabilities (Net) - (0.4%) (326)
---------
Net Assets - 100.0% $ 84,539
---------
</TABLE>
Notes to Schedule of Investments ($ in thousands):
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 22,919
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (681)
---------
Unrealized appreciation-net $ 22,238
=========
(b) Non-income producing security.
See Notes to Financial Statements
37
<PAGE>
SCHEDULE OF INVESTMENTS
Cadence Small Cap Growth Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
- ------------------------------------------------------------
Common Stocks - 96.2%
- ------------------------------------------------------------
<S> <C> <C>
Capital Goods - 15.7%
Blount International, Inc. 'A' 16,900 $ 532
Duriron Co., Inc. 15,400 370
Greenfield Industries, Inc. 11,400 376
Hughes Supply, Inc. 8,800 306
IDEX Corp. 14,600 555
Manitowoc Co., Inc. 7,200 258
Methode Electronics 'A' 36,450 620
NCI Building Systems, Inc. (b) 11,500 388
Roper Industries, Inc. 12,700 619
United Waste Systems, Inc. (b) 22,100 713
Watsco, Inc. 'A' 20,750 436
-------
5,173
Consumer Discretionary - 4.4%
Central Garden & Pet Co. (b) 9,100 164
K2, Inc. 22,200 602
Sturm, Ruger & Co., Inc. 7,100 330
Toro Co. 11,000 364
-------
1,460
Consumer Services - 6.8%
Continental Homes Holding Corp. 16,900 363
Gilat Satellite Networks Limited (b) 19,000 418
Ross Stores, Inc. 12,800 445
U.S. Home Corp. (b) 16,700 411
Wackenhut Corrections Corp. (b) 14,100 471
Westwood One, Inc. (b) 9,800 149
-------
2,257
Energy - 2.2%
Camco International, Inc. 10,900 369
Swift Energy Co. (b) 19,200 346
-------
715
Financial & Business Services - 30.3%
Allied Group, Inc. 12,800 557
American Travellers Co. (b) 23,650 544
Associated Banc-Corp. 12,187 472
Capital Re Corp. 11,600 426
Centura Banks, Inc. 11,200 412
City National Corp. 25,200 397
Colonial Bancgroup, Inc. 9,700 325
Executive Risk, Inc. 14,000 536
First Midwest Bancorp., Inc. 14,300 400
Green Tree Financial Corp. 12,700 397
HCC Insurance Holdings, Inc. 18,900 425
MMI Cos., Inc. 15,200 469
National Re Corp. 13,000 491
Penncorp Financial Group, Inc. 13,800 438
Peoples Heritage Financial Group 18,200 371
Protective Life Corp. 12,600 443
Reinsurance Group of America 11,600 438
Selective Insurance Group 12,200 397
The Money Store 15,400 341
Trenwick Group, Inc. 7,500 375
UST Corp. 30,200 449
Vesta Insurance Group, Inc. 15,050 502
Westamerica Bancorp. 8,200 412
-------
10,017
Health Care - 13.1%
Conmed Corp. (b) 15,000 399
ICN Pharmaceuticals, Inc. 13,900 323
Kinetic Concepts, Inc. 28,600 443
Magellan Health Services, Inc. (b) 4,100 88
Orthodontic Centers of America, Inc. (b) 17,400 461
Physician Reliance Network (b) 15,000 334
Physio-Control International Corp. (b) 22,700 400
Rotech Medical Corp. (b) 20,000 390
Universal Health Services, Inc. (b) 25,300 661
Vital Signs, Inc. 20,700 424
Watson Pharmaceutical, Inc. (b) 11,100 420
-------
4,343
Materials & Processing - 12.7%
Castle (A.M.) & Co. 15,525 367
Intertape Polymer Group, Inc. 22,100 448
Lone Star Industries, Inc. 11,800 397
Medusa Corp. 15,700 487
Mississippi Chemical Corp. 16,600 332
Mueller Industries, Inc. (b) 17,800 739
NN Ball & Roller, Inc. 16,950 352
Robbins & Myers, Inc. 10,200 454
Titan Wheel International, Inc. 24,525 392
Zeigler Coal Holding Co. 15,300 245
-------
4,213
Technology - 10.1%
Altron, Inc. (b) 22,700 460
Atmel Corp. (b) 17,400 524
Brightpoint, Inc. (b) 17,200 370
Datastream Systems, Inc. (b) 12,800 451
NU Horizons Electronics, Inc. (b) 10,700 118
Rational Software Corp. (b) 11,400 613
Sanmina Corp. (b) 18,400 497
Wyle Electronics 9,700 321
-------
3,354
Utilities - 0.9%
Vanguard Cellular Systems (b) 13,100 284
-------
Total Common Stocks 31,816
-------
(Cost $26,847)
- ------------------------------------------------------------
Short-Term Instruments - 3.2%
- ------------------------------------------------------------
Principal
Amount
(000's)
Repurchase Agreement - 3.2%
State Street Bank $ 1,054 1,054
4.000% due 07/01/96
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 8.750% due 11/15/08
valued at $1,078,250. Repurchase
proceeds are $1,054,351.)
-------
Total Short-Term Instruments 1,054
-------
(Cost $1,054)
Total Investments (a) - 99.4% $ 32,870
(Cost $27,901)
Other Assets and Liabilities (Net) - 0.6% 196
-------
Net Assets - 100.0% $ 33,066
=======
</TABLE>
38
<PAGE>
- ------------------------------------------------------------------
Notes to Schedule of Investments ($ in thousands):
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 5,487
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (593)
----------
Unrealized appreciation-net $ 4,894
==========
(b) Non-income producing security.
See Notes to Financial Statements
39
<PAGE>
SCHEDULE OF INVESTMENTS
Columbus Circle Investors Core Equity Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
- -----------------------------------------------------------------
Common Stocks - 98.8%
- -----------------------------------------------------------------
<S> <C> <C>
Capital Goods - 2.5%
Armstrong World Industries, Inc. 11,700 $ 674
Lockheed Martin Corp. 4,900 412
-------
1,086
Consumer Discretionary - 13.1%
Autozone, Inc. (b) 13,100 455
Black & Decker Corp. 23,600 912
Federated Department Stores, Inc. (b) 19,900 679
General Motors 'H' 11,300 679
Home Depot, Inc. 10,600 572
Liberty Media Group 'A' (b) 17,900 474
Nike, Inc. 7,100 730
TJX Cos., Inc. 23,700 800
Viacom, Inc. 'B' (b) 12,000 467
-------
5,768
Consumer Services - 3.6%
Circus Circus Enterprises, Inc. (b) 11,700 480
Dayton Hudson Corp. 6,000 619
Hilton Hotels Corp. 4,400 495
-------
1,594
Consumer Staples - 6.0%
Campbell Soup Co. 6,100 430
Kimberly Clark Corp. 9,400 726
Pepsico 42,500 1,503
-------
2,659
Energy - 4.7%
Amerada Hess Corp. 13,200 708
Schlumberger Limited 16,200 1,365
-------
2,073
Financial & Business Services - 8.7%
Aetna Life & Casualty Co. 10,700 765
Allstate Corp. 21,000 958
Chase Manhattan Corp. 16,800 1,187
Fleet Financial Group, Inc. 10,300 448
Merrill Lynch Co. 7,100 462
-------
3,820
Health Care - 11.5%
American Home Products 19,500 1,172
Bausch & Lomb, Inc. 10,600 451
Columbia HCA Healthcare Corp. 25,380 1,355
Johnson & Johnson 33,700 1,668
Oxford Health Plans (b) 9,600 395
-------
5,041
Materials & Processing - 1.5%
Georgia-Pacific Corp. (b) 9,400 667
Technology - 38.4%
Adaptec, Inc. (b) 11,500 545
Associates First Capital 17,900 673
Atmel Corp. (b) 15,800 476
Boeing 17,100 1,490
Cisco Systems (b) 24,100 1,365
Computer Associates International, Inc. (c) 14,650 1,044
Computer Sciences (b) 10,200 762
Ericsson (L.M.) - ADR 45,700 983
First Data Corp. 12,100 963
Hewlett Packard Co. 9,500 946
Honeywell, Inc. 12,100 659
Intel Corp. 18,300 1,344
Lucent Technologies 21,100 799
Microsoft Corp. (b) 14,900 1,790
Motorola, Inc. 14,000 880
Qualcomm, Inc. (b) 10,400 553
Service Corp. International 16,100 926
U.S. Robotics Corp. (b) 8,300 710
-------
16,908
Transportation - 4.2%
Delta Air Lines 12,400 1,029
Southwest Airlines 28,800 839
-------
1,868
Utilities - 4.6%
MCI Communications Corp. 44,300 1,135
Worldcom, Inc. (b) 16,100 891
-------
2,026
-------
Total Common Stocks 43,510
=======
(Cost $39,385)
</TABLE>
- -----------------------------------------------------------------
Short-Term Instruments - 1.9%
- -----------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000's)
Repurchase Agreement - 1.9%
<S> <C> <C>
State Street Bank $ 818 818
4.000% due 07/01/96
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 7.125% due 02/15/23
valued at $835,701. Repurchase
proceeds are $818,273.)
-------
Total Short-Term Instruments 818
=======
(Cost $818)
Total Investments (a) - 100.7% $44,328
(Cost $40,203)
Written Options (c) - 0.0% (2)
(Premium $6)
Other Assets and Liabilities (Net) - (0.7%) (299)
-------
Net Assets - 100.0% $44,027
=======
</TABLE>
Notes to Schedule of Investments ($ in thousands):
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 4,611
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (486)
-------
Unrealized appreciation-net $ 4,125
=======
(b) Non-income producing security.
(c) Premium received on Written Covered Call Options:
<TABLE>
<CAPTION>
Premium Market
Type Contracts Received Value
- -------------------------------------------------------
<S> <C> <C> <C>
Computer Associates
International, Inc. 16 $ 6 $ 2
Strike @ 75.00 Exp. 7/96
</TABLE>
See Notes to Financial Statements
40
<PAGE>
SCHEDULE OF INVESTMENTS
Columbus Circle Investors Mid Cap Equity Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
- ----------------------------------------------------------
Common Stocks - 97.7%
- ----------------------------------------------------------
<S> <C> <C>
Capital Goods - 4.9%
Raychem Corp. 3,000 $ 216
U.S.A. Waste Services, Inc. (b) 6,600 196
------
412
Consumer Discretionary - 24.7%
Bed Bath & Beyond, Inc. (b) 4,600 123
Boston Chicken, Inc. (b) 2,900 94
Callaway Golf Co. 5,500 183
Diebold, Inc. 4,950 239
Global DirectMail Corp. (b) 2,700 107
Gucci, Inc. (b) 4,300 277
Gymboree Corp. (b) 3,900 119
Harley Davidson, Inc. 4,400 181
International Game Technology 8,000 135
Jones Apparel Group, Inc. (b) 2,400 118
Liz Claiborne, Inc. 4,100 142
Meredith Corp. 1,200 50
Oakley, Inc. (b) 2,800 127
Omnicom Group, Inc. 1,900 88
Saks Holdings, Inc. (b) 2,600 89
------
2,072
Consumer Services - 22.4%
APAC Teleservices, Inc. (b) 6,600 238
Clear Channel Communications (b) 2,400 198
Diamond Offshore Drilling (b) 2,800 160
DST Systems, Inc. (b) 4,200 134
Gartner Group, Inc. (b) 3,900 143
HFS, Inc. (b) 5,500 385
Manpower, Inc. 2,900 114
MGM Grand, Inc. (b) 4,100 163
Peoplesoft, Inc. (b) 1,400 100
Quintiles Transnational Corp. (b) 1,600 105
Starbucks Corp. (b) 4,700 133
------
1,873
Energy - 5.4%
Ensco International (b) 5,600 182
Tosco Corp. 2,000 101
UCAR International, Inc. (b) 4,100 171
------
454
Financial & Business Services - 2.6%
Everest Reinsurance Holdings 8,300 215
Health Care - 7.6%
Guidant Corp. 5,600 276
Healthsouth Corp. (b) 7,200 259
Tenet Healthcare Corp. 4,700 100
------
635
Technology - 22.2%
Adaptec, Inc. (b) 2,600 123
American Management Systems (b) 7,100 208
Baan Co. (b) 3,800 129
Dassault Systemes SA - ADR (b) 3,200 99
Fore Systems (b) 5,000 181
Millicom International Cellular (b) 2,500 119
Netscape Communications Corp. (b) 1,700 106
Newbridge Networks Corp. (b) 3,600 236
Qualcomm, Inc. (b) 3,800 202
Sterling Commerce, Inc. (b) 3,800 141
Storage Technology Corp. (b) 3,500 134
Thermotrex Corp. (b) 2,100 103
Xylan Corp. (b) 1,800 83
------
1,864
Transportation - 5.4%
Atlas Air, Inc. (b) 1,900 $ 109
Comair, Inc. 4,650 126
Tidewater, Inc. 5,000 218
------
453
Utilities - 2.5%
MFS Communications Co., Inc. (b) 5,500 207
------
Total Common Stocks 8,185
======
(Cost $6,279)
</TABLE>
- ---------------------------------------------------------
Short-Term Instruments - 2.0%
- ---------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000's)
Repurchase Agreement - 2.0%
<S> <C> <C>
State Street Bank $ 170 170
4.000% due 07/01/96
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 7.125% due 02/15/23
valued at $174,318. Repurchase
proceeds are $170,057.)
-------
Total Short-Term Instruments 170
-------
(Cost $170)
Total Investments (a) - 99.7% $ 8,355
(Cost $6,449)
Other Assets and Liabilities (Net) - 0.3% 23
-------
Net Assets - 100.0% $ 8,378
=======
</TABLE>
Notes to Schedule of Investments ($ in thousands):
(a) At June 30, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 1,992
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (86)
-------
Unrealized appreciation-net $ 1,906
=======
(b) Non-income producing security.
See Notes to Financial Statements
41
<PAGE>
SCHEDULE OF INVESTMENTS
Parametric Enhanced Equity Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
- -------------------------------------------------------
Common Stocks - 99.8%
- -------------------------------------------------------
<S> <C> <C>
Capital Goods - 5.0%
Allied Signal, Inc. 13,992 $ 799
Caterpillar, Inc. 3,400 230
Cummins Engine, Inc. 10,100 408
Emerson Electric Co. 4,900 443
General Electric 11,200 969
Grainger (W.W.), Inc. 4,900 380
Illinois Tool Works 1,900 128
Ingersoll Rand Co. 8,500 372
Northrop Grumman Corp. 7,100 484
Paccar, Inc. 730 36
-------
4,249
Consumer Discretionary - 15.2%
Albertson's, Inc. 4,337 179
American Brands, Inc. 5,300 240
American Stores Co. 6,800 281
Briggs & Stratton Co. 7,300 300
Cooper Tire & Rubber Corp. 10,600 236
Crown Cork & Seal 7,600 342
Dana Corp. 14,300 443
Dial Corp. 1,600 46
Dillard Department Stores 6,300 230
Disney (Walt) Productions Co. 11,000 692
Echlin, Inc. 5,000 189
Federated Department Stores, Inc. (b) 8,900 304
Fleming Cos., Inc. 2,493 36
FMC Corp. (b) 600 39
Genuine Parts Co. 8,300 380
Giant Foods, Inc. 3,000 108
Gillette Co. 7,500 468
Home Depot, Inc. 11,500 621
International Flavors & Fragrances 1,800 86
Kroger Co. (b) 10,700 423
Limited, Inc. 11,200 241
Liz Claiborne, Inc. 4,300 149
Lowes Co. 18,400 665
McDonalds Corp. 9,500 444
Minnesota Mining & Manufacturing Co. 7,000 483
Nike, Inc. 2,500 257
Premark International, Inc. 10,700 198
Procter & Gamble Co. 7,948 720
Reebok International Limited 10,700 360
Seagrams Limited 8,600 289
SPX Corp. 3,100 76
Toys R Us (b) 6,500 185
Tupperware Corp. (b) 10,700 452
Unilever NV 2,500 363
UST, Inc. 3,300 113
VF Corp. 4,100 244
Viacom, Inc. 'B' (b) 11,200 435
Wal-Mart Stores, Inc. 19,900 505
Walgreen Co. 9,623 322
Wendy's International, Inc. 11,200 209
Winn Dixie Stores 8,500 301
-------
12,654
Consumer Services - 2.9%
CUC International, Inc. (b) 11,050 392
Federal Express Corp. (b) 3,800 312
Harrah's Entertainment, Inc. (b) 15,100 427
King World Productions (b) 600 22
Mattel, Inc. 20,875 598
Sears Roebuck 13,400 652
-------
2,403
Consumer Staples - 7.2%
Anheuser Busch 4,400 330
Archer-Daniel Midland 8,834 169
Campbell Soup Co. 4,300 303
Coca-Cola Co. 25,000 1,222
Colgate Palmolive 1,000 85
Conagra 13,075 593
CPC International, Inc. 2,400 173
General Mills, Inc. 1,000 55
Heinz (H.J.) Co. 2,050 62
Kellogg Co. 1,754 128
Kimberly Clark Corp. 6,000 464
Pepsico 26,400 934
Philip Morris Co., Inc. 8,300 863
Sara Lee Corp. 8,800 285
Sysco Corp. 8,400 288
Wrigley, William Jr. Co. 1,900 96
-------
6,050
Energy - 6.3%
Amoco Corp. 6,600 478
Atlantic Richfield Co. 1,700 201
Chevron Corp. 7,800 460
Exxon Corp. 11,200 973
Mobil Corp. 5,161 579
Phillips Petroleum Co. 10,200 427
Royal Dutch Petroleum Co. 5,500 846
Schlumberger Limited 4,300 362
Texaco, Inc. 5,968 501
Unocal Corp. 12,129 409
-------
5,236
Financial & Business Services - 17.9%
American Express 14,200 634
American International Group, Inc. 5,637 556
Banc One Corp. 12,128 412
Bank of Boston Corp. 13,600 673
Bankamerica Corp. 9,900 750
Bankers Trust N.Y. Corp. 2,584 191
Barnett Banks 12,600 769
Chase Manhattan Corp. 19,179 1,355
Chubb Corp. 6,800 339
Cigna Corp. 3,100 365
Citicorp 11,383 941
Dean Witter Discover & Co. 3,000 172
Federal National Mortgage Assn. 30,000 1,005
First Chicago Corp. 5,350 209
First Union Corp. 13,315 811
Fleet Financial Group., Inc. 18,800 818
General Re Corp. 1,700 259
Golden West Financial Corp. 7,200 403
Jefferson Pilot Corp. 6,200 320
Merrill Lynch Co. 8,600 560
Morgan J.P. and Co., Inc. 3,058 259
NationsBank Corp. 6,166 509
Norwest Corp. 14,870 519
Safeco Corp. 6,100 216
St. Paul Cos., Inc. 4,800 257
Suntrust Banks, Inc. 15,200 561
Travelers Group, Inc. (b) 7,500 342
Wachovia Corp. 3,800 166
Wells Fargo & Co. 2,261 540
-------
14,911
Health Care - 10.5%
Abbott Laboratories 13,200 574
American Home Products 9,300 559
Amgen, Inc. (b) 4,500 243
Becton Dickinson 6,400 514
Beverly Enterprises (b) 9,200 110
Bristol Myers Squibb 8,400 756
Johnson & Johnson 18,200 901
Lilly Eli & Co. 5,300 345
</TABLE>
42
<PAGE>
<TABLE>
<CAPTION>
Value
Shares (000's)
- ------------------------------------------------------------
<S> <C> <C>
Manor Care, Inc. 9,400 $ 370
Medtronic, Inc. 3,900 218
Merck & Co., Inc. 19,900 1,286
Pfizer, Inc. 10,700 764
Pharmacia & Upjohn, Inc. 12,100 537
Schering-Plough 6,100 383
St. Jude Medical Enterprises, Inc. (b) 9,750 327
U.S. Health Care Systems, Inc. 2,500 138
United Healthcare Corp. 8,900 449
Warner Lambert Co. 4,700 258
-------
8,732
Materials & Processing - 5.7%
Barrick Gold Corp. 18,900 513
du Pont (E.I.) de Nemours 5,800 459
Engelhard Corp. 2,350 54
First Mississippi 1,500 33
Fluor Corp. 4,577 299
Great Lakes Chemical 4,100 255
Hercules, Inc. 9,500 525
International Paper 9,846 363
Louisiana Pacific Corp. 17,400 385
Morton International 10,200 380
NUCOR Corp. 5,900 299
Pall Corp. 14,755 356
Pioneer Hi-Bred International 8,300 438
Union Carbide Corp. 2,400 95
Worthington Industries, Inc. 15,000 313
-------
4,767
Technology - 14.9%
Advanced Micro Devices (b) 17,600 240
Andrew Corp. (b) 13,375 719
Applied Materials (b) 3,000 92
Autodesk, Inc. 8,200 245
Automatic Data Processing 10,700 413
Bay Networks, Inc. (b) 3,400 88
Boeing 5,300 462
Cabletron Systems, Inc. (b) 4,300 295
Compaq Computer Corp. (b) 10,600 522
Computer Associates International, Inc. 3,850 274
DSC Communications (b) 13,500 407
General Dynamics Corp. 1,100 68
Hewlett Packard Co. 6,300 628
Honeywell, Inc. 6,600 360
IBM Corp. 5,300 525
Intel Corp. 15,900 1,168
McDonnell Douglas 16,000 776
Micron Technology, Inc. 3,500 91
Microsoft Corp. (b) 8,200 985
Motorola, Inc. 6,380 401
National Semiconductor (b) 7,400 115
Northern Telecommunications Limited 8,200 446
Novell, Inc. (b) 12,900 179
Oracle Systems Corp. (b) 18,525 731
Raytheon Co. 9,000 465
Service Corp. International 8,900 512
Sun Microsystem, Inc. (b) 9,700 571
Tektronix 4,700 210
Texas Instruments, Inc. 5,000 249
WMX Technologies 4,723 154
-------
12,391
Transportation - 1.2%
Consolidated Freightways, Inc. 11,200 237
Norfolk Southern 4,000 339
Southwest Airlines 14,800 430
-------
1,006
Utilities - 13.0%
360 Communications Co. (b) 2,727 $ 64
Airtouch Communications, Inc. (b) 4,900 138
Alltel Corp. 5,800 178
American Electric Power, Inc. 3,061 130
Ameritech 9,333 554
AT&T Corp. 21,400 1,327
Baltimore Gas & Electric 6,384 181
Bell Atlantic Corp. 6,741 430
Bell South 15,470 656
Carolina Power and Light Co. 7,464 284
Central & South West Corp. 4,900 142
Coastal Corp. 10,100 422
Consolidated Edison Co. 3,400 99
Consolidated Natural Gas 3,071 160
Dominion Resources, Inc. 3,950 158
DTE Energy Co. 2,100 65
Duke Power Co. 2,651 136
Enron Corp. 12,200 499
Entergy Corp. 5,400 153
FPL Group, Inc. 3,132 144
GTE Corp. 15,977 715
Houston Industry, Inc. 4,394 108
MCI Communications Corp. 10,300 264
NICOR, Inc. 6,481 184
Nynex Corp. 9,606 456
Ohio Edison Co. 2,731 60
Pacific Gas & Electric 6,600 153
Pacific Telesis 7,062 238
Peco Energy Co. 8,891 231
Public Service Enterprise 4,135 113
SBC Communications 12,021 592
Sonat, Inc. 15,200 684
Southern Co. 11,060 272
Sprint Corp. 8,282 348
U.S. West Communications Group 5,671 181
U.S. West Media Group (b) 5,332 97
Unicom Corp. 5,200 145
Union Electric Co. 1,600 64
-------
10,825
-------
Total Common Stocks 83,224
=======
(Cost $69,559)
</TABLE>
- -------------------------------------------------------------
Short-Term Instruments - 0.1%
- -------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000's)
<S> <C> <C>
Repurchase Agreement - 0.1%
State Street Bank $ 130 130
4.000% due 07/01/96
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 8.750% due 11/15/08
valued at $136,200. Repurchase
proceeds are $130,043.)
-------
Total Short-Term Instruments 130
-------
(Cost $130)
Total Investments (a) - 99.9% $83,354
(Cost $69,689)
Other Assets and Liabilities (Net) - 0.1% 71
-------
Net Assets - 100.0% $83,425
=======
</TABLE>
43
<PAGE>
SCHEDULE OF INVESTMENTS (Cont.)
Parametric Enhanced Equity Fund
June 30, 1996
- --------------------------------------------------------------------------------
Notes to Schedule of Investments ($ in thousands):
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 15,346
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (1,848)
-----------
Unrealized appreciation-net $ 13,498
===========
(b) Non-income producing security.
See Notes to Financial Statements
44
<PAGE>
SCHEDULE OF INVESTMENTS
Blairlogie Emerging Markets Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's) Country
- ------------------------------------------------------------------
Common Stocks - 95.5%
- ------------------------------------------------------------------
<S> <C> <C> <C>
Capital Goods - 8.5%
Adana Cimento 3,864,760 $ 234 (TK)
Apasco SA 137,500 759 (MX)
Cementos Diamante - ADR (b) 11,500 181 (CO)
Cementos Paz Del Rio - ADR 31,300 415 (CO)
Cimpor Cimentos 12,140 252 (PL)
Dewan Salman Rights (b) 10,263 0 (PK)
DG Kahn Cement (b) 187,010 74 (PK)
DG Kahn Cement Rights (b) 792 0 (PK)
Duratex SA (b) 8,400 363 (BR)
Empresas Ica Sociedad (b) 25,020 351 (MX)
Fauji Fertilizer Co. 67,900 175 (PK)
P.T. Semen Gresik 117,500 342 (ID)
Road Builder (M) Holdings Berhad 276,400 1,230 (MY)
Sungei Way Holdings Berhad 163,000 765 (MY)
Tata Engineering &
Locomotive Co. - GDR 37,424 664 (IN)
United Engineers 139,000 964 (MY)
United Tractors 92,000 145 (ID)
------
6,914
Conglomerate - 6.5%
Ayala Corp. (b) 279,400 528 (PH)
Barlow Limited 42,480 444 (SF)
Cadenalco - ADR 24,600 335 (CO)
Century Textiles - GDR (b) 2,250 359 (IN)
Controladora Commercial 291,000 272 (MX)
Desc Sociedad de Fomento 'B' 63,000 340 (MX)
Desc Sociedad de Fomento 'C' 1,312 7 (MX)
Indian Rayon & Industries - GDR 30,550 451 (IN)
Koor Industries 1,600 135 (IL)
Larsen & Tourbro Limited - GDS 26,280 496 (IN)
Madeco SA - ADR 29,900 841 (CH)
Murray and Roberts Holdings 92,830 371 (SF)
Smith C.G. Limited 47,730 248 (SF)
Tadiran Limited 27,000 116 (IL)
Turkey Sise Ve Cam Fabrika (b) 3,837,216 303 (TK)
------
5,246
Consumer Discretionary - 10.2%
Akaltekstil 4,147,500 257 (TK)
Bajaj Auto - GDR 12,070 459 (IN)
Bimantara Citra 217,000 275 (ID)
Brasmotor SA 2,114 661 (BR)
Cifra SA 448,080 646 (MX)
Coteminas Cia Tecidos (b) 1,270 501 (BR)
Grupo Televisa - GDS 14,610 449 (MX)
H.M. Sampoerna (b) 35,000 399 (ID)
Jeronimo Martins 4,220 380 (PL)
Lojas Americanas SA 20,934 413 (BR)
Migros 497,800 435 (TK)
Nasionale Pers Limited 49,700 551 (SF)
Perusahaan Otomobil Nasi 271,000 1,478 (MY)
Raymond Limited (b) 19,700 401 (IN)
South Indian Viscose Warrants (b) 11,260 1 (IN)
UMW Holdings Berhad 263,866 942 (MY)
------
8,248
Consumer Services - 2.0%
East India Hotels - GDR 20,460 555 (IN)
Indian Hotels Co. - GDR 15,100 428 (IN)
Inversiones y Representaciones - GDR 5,084 172 (AR)
SM Prime Holdings 1,902,000 494 (PH)
------
1,649
Consumer Staples - 7.5%
Backus and Johnston (b) 118,687 148 (PR)
Ceval Alimentos SA (b) 26,500 276 (BR)
Compania Cervecerias Unidas - ADS 20,000 470 (CH)
Elite Industries 27,000 100 (IL)
Fomento Economico Mexica 85,000 244 (MX)
Grupo Modelo SA de Cv 93,000 435 (MX)
Kimberly Clark de Mexico 32,800 597 (MX)
Mavesa SA - ADR 11,700 46 (VZ)
Metro Cash and Carry (b) 107,900 417 (SF)
Molinos Rio de la Plata 15,250 160 (AR)
Osem Investment 24,136 142 (IL)
Rembrandt Group 72,840 685 (SF)
San Miguel Corp. 182,970 632 (PH)
South African Breweries 22,500 660 (SF)
Souza Cruz (CIA) SA 47,800 417 (BR)
Super Sol 7,560 161 (IL)
Vina Concha Y Toro - ADR 27,000 500 (CH)
-----
6,090
Energy - 3.6%
Compania Naviera Perez Co. - ADR 52,005 690 (AR)
Hub Power Co. - GDR (b) 7,000 174 (PK)
Korea Kumho Petrochemical 37,600 328 (SK)
Pakistan State Oil 15,810 187 (PK)
Petrol Brasileiros 5,602 689 (BR)
YPF Sociedad Anonima - ADR 38,400 864 (AR)
-----
2,932
Financial & Business Services - 20.9%
Banco Bradesco SA (b) 138,945 1,135 (BR)
Banco Frances del Rio 22,365 213 (AR)
Banco Itau SA 1,250 508 (BR)
Banco Osorno y La Union - ADS 32,400 437 (CH)
Banco Wiese - ADR 18,400 131 (PR)
Bangkok Bank 126,900 1,719 (TH)
Bank Hapoalim 80,800 119 (IL)
Bank International Indonesia 100,500 497 (ID)
Bank Rozwoju Eksportu 15,910 415 (PD)
Bank Slaski 1,730 146 (PD)
Cho Hung Bank 41,316 504 (SK)
CMIC Finance and Securities 113,500 358 (TH)
Credicorp Limited 7,244 144 (PR)
Daewoo Securities Co. 8,700 203 (SK)
DCB Holdings Berhad 144,000 494 (MY)
Demirbank (b) 7,899,000 268 (TK)
Faysal Bank 40,400 38 (PK)
Grupo Financiero Banamex (b) 586,007 1,113 (MX)
Investec Consulting (b) 4,500 149 (PL)
Krung Thai Bank Limited 184,600 865 (TH)
Liberty Life Association of Africa 18,200 583 (SF)
Malayan Banking Berhad 146,000 1,405 (MY)
Metro Bank and Trust Co. 25,800 724 (PH)
Nedcor - GDR 61,100 917 (SF)
Nedcor Warrants 4,400 17 (SF)
Norwich Holdings (b) 213,400 379 (SF)
Phatra Thanakit Co. 48,000 335 (TH)
Public Bank Berhad 401,000 1,109 (MY)
Sonae Investmentos 12,100 314 (PL)
Telefonica del Peru 422,338 849 (PR)
Thai Farmers Bank 70,400 771 (TH)
------
16,859
Health Care - 0.2%
Teva Pharmaceutical - ADR 3,900 148 (IL)
Materials & Processing - 14.8%
Aracruz Celulose SA (b) 186,122 347 (BR)
Bagfas Bandirma Gubre (b) 836,000 226 (TK)
Brisa Bridgestone Sabanc 660,000 264 (TK)
Cia Vale Rio Doce 25,162 487 (BR)
De Beers Consolidated 25,740 886 (SF)
Debica (b) 11,780 286 (PD)
</TABLE>
45
<PAGE>
SCHEDULE OF INVESTMENTS (Cont.)
Blairlogie Emerging Markets Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's) Country
- ------------------------------------------------------------------------
<S> <C> <C> <C>
Engro Chemical 18,400 $ 85 (PK)
Eregli Demir Celik 2,306,000 255 (TK)
Fertilizantes Fosfatados 70,000 298 (BR)
Gencor 174,810 646 (SF)
Grasim Industries - GDS 36,000 671 (IN)
Grupo Mexico SA (b) 138,260 414 (MX)
Gujarat Narmada Va - GDR 2,360 13 (IN)
Gujarat Narmada Va - GDR 19,000 126 (IN)
Hanwha Chemical Corp. 20,200 218 (SK)
Hindalco Industries - GDR 17,420 660 (IN)
ICL Israel Chemical 168,000 141 (IL)
Indian Aluminium - GDR (b) 63,400 460 (IN)
Industrias Penoles SA 124,600 572 (MX)
Jaya Tiasa Holdings 166,000 972 (MY)
Maderas Sinteticos Sociedad - ADR 5,600 99 (CH)
Minas Buenaventura 'A' 18,496 166 (PR)
Minas Buenaventura 'B' 4,624 45 (PR)
Minsur SA (b) 14,100 125 (PR)
Paranapanema SA Mineraca 19,456 155 (BR)
Petron Corp. 784,875 360 (PH)
Pohang Iron & Steel Co. - ADR 4,900 119 (SK)
Polifarb Cieszyn 44,240 224 (PD)
Reliance Industries - GDS 43,420 564 (IN)
Samsung Heavy Industries 29,500 458 (SK)
Sider Nacional 17,100 436 (BR)
Sider Venezolana - ADR (b) 26,900 86 (VZ)
Siderca SA (b) 108,167 148 (AR)
Southern Peru Copper 28,600 107 (PR)
Steel Authority of India - GDR (b) 19,800 292 (IN)
Tubos de Acero de Mexico (b) 59,200 567 (MX)
------
11,978
Technology - 1.2%
Arcelik 3,430,500 316 (TK)
Efacec-Empresa Fabril (b) 27,321 256 (PL)
Oryx (India) Fund Limited (b) 5,030 194 (IN)
Oryx (India) Shares Fund (b) 10,800 81 (IN)
Samsung Co. - GDR 1,172 6 (SK)
Samsung Co. - GDS 15,850 85 (SK)
---
938
Transportation - 0.0%
Transport Maritima - ADR 750 6 (MX)
Utilities - 20.1%
Buenos Aires Embotelladora - ADR 3,450 46 (AR)
Centrais Eletrobras 4,454 1,273 (BR)
Chilgener SA - ADS 23,400 562 (CH)
Cia Energetica Minas 16,530 440 (BR)
Cia Paulista de Forca 6,255 573 (BR)
Compania de Telefonos de Chile - ADR 9,314 914 (CH)
Electricidad de Caracas (b) 390,000 323 (VZ)
Elektrim 62,231 510 (PD)
Empresa Nacional de Electric - ADS 15,500 333 (CH)
Enersis SA - ADR 24,400 756 (CH)
Korea Electric Power 22,600 902 (SK)
Pakistan Telecommunications - GDS (b) 400 47 (PK)
Philippine Long
Distance Telephone - ADR 13,000 756 (PH)
Portugal Telecommunications 20,010 523 (PL)
Sociedad Quimica y
Minera de Chile - ADR 9,060 492 (CH)
Tadiran Telecommunications 6,280 100 (IL)
Technology Resources Industries (b) 269,000 938 (MY)
Telecomunicacoes Brasileiras - ADR 17,450 1,215 (BR)
Telecomunicacoes Brasileiras 17,000 999 (BR)
Telecomunicacoes Brasileiras Rights (b) 17,000 0 (BR)
Telefonica de Argentina - ADR 23,000 681 (AR)
Telefonos de Mexico - ADR 61,550 2,062 (MX)
Telekomunikasi Indonesia - ADR 20,000 $ 595 (ID)
Total Access Communications 142,000 1,208 (TH)
------
16,248
------
Total Common Stocks 77,256
======
(Cost $70,913)
Total Investments (a) - 95.5% $77,256
(Cost $70,913)
Other Assets and Liabilities (Net) - 4.5% 3,657
-------
Net Assets - 100.0% $80,913
=======
</TABLE>
Notes to Schedule of Investments ($ in thousands):
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 9,930
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (3,969)
-------
Unrealized appreciation-net $ 5,961
=======
(b) Non-income producing security.
<TABLE>
<CAPTION>
Country Composition
<S> <C> <C> <C>
Argentina (AR) 3.9% Peru (PR) 2.2%
Brazil (BR) 14.5% Philippines (PH) 4.5%
Chile (CH) 7.0% Poland (PD) 2.1%
Colombia (CO) 1.2% Portugal (PL) 2.4%
India (IN) 8.9% South Africa (SF) 8.8%
Indonesia (ID) 2.9% South Korea (SK) 3.7%
Israel (IL) 1.5% Thailand (TH) 6.8%
Malaysia (MY) 13.3% Turkey (TK) 3.3%
Mexico (MX) 11.4% Venezuela (VZ) 0.6%
Pakistan (PK) 1.0% ------
Total 100.0%
======
</TABLE>
See Notes to Financial Statements
46
<PAGE>
SCHEDULE OF INVESTMENTS
Blairlogie International Active Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's) Country
- --------------------------------------------------------------------------------
Common Stocks - 93.7%
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital Goods - 8.5%
Boral Limited 15,600 $ 41 (AS)
CRH PLC 15,300 151 (IR)
Holderbank Financiere 450 359 (SZ)
Keppel Corp. 22,000 184 (SN)
MetaCorp Berhad (b) 99,000 286 (MY)
Mitsui Engineering & Shipbuilding 560,000 1,706 (JA)
Obayashi Corp. 158,000 1,428 (JA)
Pirelli SPA 105,000 176 (IT)
Road Builder (M) Holdings Berhad 80,412 358 (MY)
Schneider SA 9,240 484 (FR)
Sungei Way Holdings Berhad 68,000 320 (MY)
Unichem SPA (b) 22,000 161 (IT)
United Engineers Berhad 36,000 250 (MY)
Wolseley PLC 79,800 563 (UK)
-----
6,467
Conglomerate - 1.4%
Citic Pacific Limited 30,000 121 (HK)
Hutchison Whampoa 54,000 340 (HK)
Straits Steamship 62,000 207 (SN)
Swire Pacific 'A' 42,400 363 (HK)
-----
1,031
Consumer Discretionary - 11.5%
Ahold Koninklijke 2,261 122 (NL)
Benetton Group SPA 7,000 90 (IT)
Boots Co. PLC 60,800 546 (UK)
Carrefour 745 417 (FR)
Carrefour Rights 745 206 (FR)
Clarins 3,450 530 (FR)
Cycle & Carriage 16,000 171 (SN)
Daimler Benz AG 570 305 (GC)
Daimler Benz AG Rights (b) 570 0 (GC)
David Jones Limited (b) 26,500 37 (AS)
Edaran Otomobil Nasional 33,000 316 (MY)
Elsevier NV 13,351 202 (NL)
Karstadt AG 1,164 463 (GC)
Marubeni Corp. 270,000 1,478 (JA)
News Corp. (b) 15,200 86 (AS)
Peugeot 2,650 354 (FR)
Pilkington PLC 141,550 398 (UK)
Saloman SA 730 666 (FR)
Societe BIC SA 3,500 496 (FR)
Television Broadcasts 29,000 109 (HK)
Tesco PLC 133,700 611 (UK)
Vendex International NV (b) 3,600 125 (NL)
Ver Ned Uitgevers 10,800 167 (NL)
Volkswagen AG 1,840 684 (GC)
Werner Soderstrom Osakey 10,000 185 (FI)
-----
8,764
Consumer Services - 7.1%
Aumar Autop del Mare Nos 25,200 325 (SP)
British Airport Authority PLC 68,640 498 (UK)
Cheung Kong Holdings 32,000 230 (HK)
Club Mediterranee 4,754 425 (FR)
Compagnie de Saint-Gobain 3,560 476 (FR)
DBS Land 58,000 199 (SN)
Granada Group PLC (b) 45,500 609 (UK)
Mitsui Fudosan Co. 116,000 1,566 (JA)
Parmalat Finanziaria 194,000 260 (IT)
Resorts World Berhad 35,971 206 (MY)
Sun Hung Kai Properties 58,816 595 (HK)
-----
5,389
Consumer Staples - 2.5%
Hartwall Oy AB 750 18 (FI)
Kerry Group 11,300 116 (IR)
Nestle SA 370 $ 422 (SZ)
RJ Reynolds Berhad (b) 68,000 200 (MY)
Scottish & Newcastle PLC 56,000 573 (UK)
SouthCorp Holdings Limited 14,700 36 (AS)
Unilever NV (b) 1,260 182 (NL)
Unilever PLC (b) 17,000 338 (UK)
-----
1,885
Energy - 6.1%
Broken Hill Proprietary Co. 11,522 159 (AS)
Burmah Castrol (b) 28,300 447 (UK)
Elf Aquitaine 8,650 635 (FR)
Eni SPA 83,500 416 (IT)
Nippon Oil Co. 258,000 1,749 (JA)
Royal Dutch Petroleum 3,170 489 (NL)
Shell Transport & Trading Co. 51,500 753 (UK)
-----
4,648
Financial & Business Services - 16.5%
Abbey National PLC 59,400 499 (UK)
ABN-AMRO Holdings NV 5,690 305 (NL)
Allianz AG Holdings 233 404 (GC)
Allied Irish Banks 11,200 58 (IR)
Banca Fideuram 155,000 335 (IT)
Banco Popular Espanol 2,776 494 (SP)
Bank of Ireland 5,300 36 (IR)
Cie de Suez 8,050 294 (FR)
Commercial Union PLC 50,000 450 (UK)
Compagnie Bancaire SA 6,550 737 (FR)
Credito Italiano 249,000 291 (IT)
CS Holdings 6,015 571 (SZ)
Daiwa Securities Co. Limited 100,000 1,286 (JA)
DCB Holdings Berhad 58,000 199 (MY)
Deutsche Bank 9,550 452 (GC)
Fortis Amev NV 5,405 155 (NL)
Hang Seng Bank 11,400 115 (HK)
Hong Leong Finance 42,000 147 (SN)
Lloyd's TSB Group PLC 94,204 460 (UK)
Malayan Banking Berhad 29,000 279 (MY)
Muenchener Rueckvers AG 76 155 (GC)
Muenchener Rueckvers AG Warrants (b) 3 0 (GC)
Overseas Chinese Bank 31,000 362 (SN)
Overseas Chinese Bank Rights 3,100 25 (SN)
Overseas Union Bank 57,000 392 (SN)
R.A.S. SPA 22,200 230 (IT)
Sumitomo Bank 94,000 1,818 (JA)
Sumitomo Trust & Banking 119,000 1,628 (JA)
Westpac Banking Corp. 24,900 110 (AS)
Winterthur Schweiz 295 175 (SZ)
------
12,462
Health Care - 4.5%
Fujisawa Pharmaceutical Co. 145,000 1,521 (JA)
Roche Holdings AG 70 533 (SZ)
Roussel-Uclaf 2,020 485 (FR)
Smithkline Beecham (b) 79,298 847 (UK)
------
3,386
Materials & Processing - 14.9%
Akzo Noble NV (b) 1,410 169 (NL)
Allusuisse-Lonza Holdings 340 280 (SZ)
Amcor Limited 'A' 11,200 76 (AS)
Bayer AG 26,770 941 (GC)
Bobst AG 135 195 (SZ)
Ciba Geigy AG 295 359 (SZ)
Clariant AG 760 278 (SZ)
Comalco Limited 13,200 77 (AS)
Degussa AG 1,380 468 (GC)
Kesko (b) 4,500 66 (FI)
Mannesmann AG 2,153 740 (GC)
</TABLE>
47
<PAGE>
SCHEDULE OF INVESTMENTS (Cont.)
Blairlogie International Active Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's) Country
<S> <C> <C> <C>
- ------------------------------------------------------------------
Mitsubishi Chemical Corp. 305,000 $1,408 (JA)
NKK Corp. 546,000 1,654 (JA)
Sasib RNC 101,000 201 (IT)
Smurfit (Jefferson) 22,900 61 (IR)
Sumitomo Metal Mining 185,000 1,602 (JA)
Tokyo Steel Manufacturing 74,000 1,451 (JA)
UPM-Kymmene Corp.(b) 4,480 93 (FI)
Valmet Corp. 7,100 120 (FI)
WMC Limited 18,500 132 (AS)
Zeneca Group PLC 40,960 904 (UK)
------
11,275
Technology - 6.1%
ABB AG 255 315 (SZ)
Alcatel Alsthom 4,800 419 (FR)
Matsushita Electric Works 139,000 1,509 (JA)
NEC Corp. 163,000 1,769 (JA)
Siemens AG 11,800 632 (GC)
-----
4,644
Transportation - 4.1%
Comfort Group (b) 200,000 199 (SN)
Finnair Oy 4,100 28 (FI)
Mitsui O.S.K. Lines Limited (b) 383,000 1,321 (JA)
Tokyu Corp. 208,000 1,584 (JA)
-----
3,132
Utilities - 10.5%
Edison International 49,000 295 (IT)
Endesa 7,684 478 (SP)
Hong Kong Telecommunications 57,600 103 (HK)
Iberdrola SA 64,452 661 (SP)
Kon Ptt Nederland 4,580 173 (NL)
Nippon Telegraph & Telephone (b) 221 1,637 (JA)
Nokia Corp. 2,770 101 (FI)
Repsol SA ADR 7,956 276 (SP)
Scottish Power (b) 90,000 425 (UK)
Stet Societa Finanziaria Telefonica SPA 111,000 375 (IT)
Technology Resources Industries (b) 101,000 352 (MY)
Telecom Italia SPA 142,000 305 (IT)
Telefonica de Espana 34,510 635 (SP)
Telekom Malaysia 551 5 (MY)
Tokyo Electric Power 48,400 1,227 (JA)
Veba AG 17,530 931 (GC)
-----
7,979
------
Total Common Stocks 71,062
(Cost $64,970) ======
Total Investments (a) - 93.7% $71,062
(Cost $64,970)
Other Assets and Liabilities (Net) - 6.3% 4,769
-------
Net Assets - 100.0% $75,831
=======
</TABLE>
Notes to Schedule of Investments ($ in thousands):
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 7,345
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (1,287)
-------
Unrealized appreciation-net $ 6,058
=======
(b) Non-income producing security.
<TABLE>
<CAPTION>
Country Composition
<S> <C> <C> <C>
Australia (AS) 1.1% Japan (JA) 41.3%
Finland (FI) 0.9% Malaysia (MY) 3.9%
France (FR) 9.3% The Netherlands(NL) 2.9%
Germany (GC) 8.7% Singapore (SN) 2.7%
Hong Kong (HK) 2.8% Spain (SP) 4.0%
Ireland (IR) 0.6% Switzerland (SZ) 4.9%
Italy (IT) 4.4% United Kingdom (UK) 12.5%
-----
Total 100.0%
=====
</TABLE>
See Notes to Financial Statements
48
<PAGE>
SCHEDULE OF INVESTMENTS
Balanced Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
<S> <C> <C>
- --------------------------------------------------------------------------------
Common Stocks - 59.6%
- --------------------------------------------------------------------------------
Capital Goods - 2.9%
Allied Signal, Inc. 8,068 $ 461
Caterpillar, Inc. 2,000 136
Cummins Engine, Inc. 5,500 222
Emerson Electric Co. 2,700 244
General Electric 6,700 580
Grainger (W.W.), Inc. 2,900 225
Illinois Tool Works 1,200 81
Ingersoll Rand Co. 4,800 210
Northrop Grumman Corp. 4,100 279
--------
2,438
Consumer Discretionary - 9.7%
Albertson's, Inc. 2,554 106
Briggs & Stratton Co. 4,300 177
Cooper Tire & Rubber Corp. 6,300 140
Crown Cork & Seal 4,500 203
Dana Corp. 8,200 254
Dial Corp. 1,800 52
Dillard Department Stores 3,600 131
Disney (Walt) Productions Co. 6,500 409
Earthgrain Co. (b) 204 7
Echlin, Inc. 8,700 330
Federated Department Stores, Inc. (b) 4,500 154
Fleming Cos., Inc. 1,823 26
FMC Corp. (b) 700 46
Genuine Parts Co. 4,600 210
Giant Foods, Inc. 1,800 65
Gillette Co. 4,500 281
Harland (John H.) Co. 21 1
Home Depot, Inc. 6,833 369
International Flavors & Fragrances 1,100 52
King World Productions (b) 1,200 44
Kroger Co. (b) 6,400 253
Limited, Inc. 6,700 144
Liz Claiborne, Inc. 2,500 87
Lowes Co. 10,100 365
McDonalds Corp. 5,400 252
Minnesota Mining & Manufacturing Co. 4,100 283
Nike, Inc. 5,900 606
Premark International, Inc. 5,900 109
Procter & Gamble Co. 4,700 426
Reebok International Limited 6,100 205
Schweitzer-Mauduit 390 11
Seagrams Limited 5,000 168
Sears Roebuck 7,500 365
SPX Corp. 1,900 47
Toys R Us (b) 3,900 111
Tupperware Corp. (b) 2,900 123
Unilever NV 1,500 218
UST, Inc. 1,900 65
VFCorp. 2,300 137
Viacom, Inc. 'B' (b) 6,500 253
Wal-Mart Stores, Inc. 11,900 302
Walgreen Co. 5,491 184
Wendy's International, Inc. 6,100 114
Winn Dixie Stores 5,100 179
--------
8,064
Consumer Services - 1.2%
CUC International, Inc. (b) 6,050 215
Federal Express Corp. (b) 2,200 180
Harrah's Entertainment, Inc. (b) 8,500 240
Mattel, Inc. 12,527 358
--------
993
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (000's)
<S> <C> <C>
================================================================================
Consumer Staples - 4.7%
American Brands, Inc. 2,700 123
American Stores Co. 3,900 161
Anheuser Busch 2,600 195
Archer-Daniel Midland 4,954 95
Campbell Soup Co. 2,500 176
Coca-Cola Co. 14,900 728
Colgate Palmolive 400 34
Conagra 7,700 349
CPC International, Inc. 1,500 108
General Mills, Inc. 500 27
Heinz (H.J.) Co. 1,550 47
Kellogg Co. 1,039 76
Kimberly Clark Corp. 3,600 278
Pepsico 15,800 559
Philip Morris Co., Inc. 5,000 520
Sara Lee Corp. 5,300 172
Sysco Corp. 4,600 158
Wrigley, William Jr. Co. 1,200 60
--------
3,866
Energy - 3.7%
Amoco Corp. 3,900 282
Atlantic Richfield Co. 1,100 130
Chevron Corp. 4,600 271
Exxon Corp. 6,600 573
Mobil Corp. 3,144 353
Phillips Petroleum Co. 6,000 251
Royal Dutch Petroleum Co. 3,300 507
Schlumberger Limited (b) 2,400 202
Texaco, Inc. 3,546 297
Unocal Corp. 6,332 213
--------
3,079
Financial & Business Services - 10.5%
American Express (b) 7,300 326
American International Group, Inc. 3,275 323
Banc One Corp. 7,199 245
Bank of Boston Corp. 7,400 366
Bankamerica Corp. 5,900 447
Bankers Trust N.Y. Corp. 1,588 117
Barnett Banks 7,100 433
Chase Manhattan Corp. 11,032 779
Chubb Corp. 4,100 204
Cigna Corp. 1,600 189
Citicorp 6,810 563
Dean Witter Discover & Co. 1,600 92
Federal National Mortgage Association 17,900 600
First Chicago Corp. 3,200 125
First Union Corp. 7,920 482
Fleet Financial Group, Inc. 10,800 470
General Re Corp. 1,100 167
Golden West Financial Corp. 4,300 241
Jefferson Pilot Corp. 3,650 188
Merrill Lynch Co. 4,800 313
Morgan, J.P. and Co., Inc. 1,894 160
NationsBank Corp. 3,670 303
Norwest Corp. 8,887 310
Safeco Corp. 3,600 127
St. Paul Cos., Inc. 2,800 150
Suntrust Banks, Inc. 9,000 333
Travelers Group, Inc. (b) 3,800 173
Wachovia Corp. 2,300 101
Wells Fargo & Co. 1,453 346
--------
8,673
Health Care - 6.2%
Abbott Laboratories 7,900 344
American Home Products 5,400 325
</TABLE>
49
<PAGE>
SCHEDULE OF INVESTMENTS (Cont.)
Balanced Fund
June 30, 1996
<TABLE>
<CAPTION>
Value
Shares (000's)
================================================================================
<S> <C> <C>
Amgen, Inc. (b) 2,700 $ 146
Becton Dickinson 3,600 289
Beverly Enterprises (b) 4,300 52
Bristol Myers Squibb 4,800 432
Johnson & Johnson 10,800 535
Lilly Eli & Co. 3,100 202
Manor Care, Inc. 5,300 209
Medtronic, Inc. 2,300 129
Merck & Co., Inc. 11,600 750
Pfizer, Inc. 6,400 457
Pharmacia & Upjohn, Inc. 6,900 306
Schering-Plough 3,600 226
Shared Medical Systems Corp. 700 45
St. Jude Medical Enterprises, Inc. (b) 5,900 198
U.S. Health Care Systems, Inc. 1,500 83
United Healthcare Corp. 5,200 263
Warner Lambert Co. 2,700 148
--------
5,139
Materials & Processing - 3.3%
Barrick Gold Corp. 10,100 274
du Pont (E.I.) de Nemours 3,500 277
Engelhard Corp. 2,050 47
First Mississippi 1,000 22
Fluor Corp. 2,777 182
Getchell Gold Corp. (b) 708 23
Great Lakes Chemical 2,300 143
Hercules, Inc. 5,200 287
International Paper 5,675 209
Louisiana Pacific Corp. 9,600 212
Morton International 5,800 216
NUCOR Corp. 3,200 162
Pall Corp. 8,020 193
Pioneer Hi-Bred International 4,300 227
Union Carbide Corp. 1,400 56
Worthington Industries, Inc. 8,650 180
--------
2,710
Technology - 9.0%
Advanced Micro Devices 10,000 136
Andrew Corp. (b) 7,875 423
Applied Materials (b) 1,800 55
Autodesk, Inc. 4,600 137
Automatic Data Processing 6,400 247
Bay Networks, Inc. (b) 2,000 52
Boeing 3,000 261
Cabletron Systems, Inc. (b) 2,300 158
Compaq Computer Corp. (b) 6,300 310
Computer Associates International, Inc. 2,250 160
DSC Communications (b) 7,700 232
General Dynamics Corp. 800 50
Hewlett Packard Co. 5,500 548
Honeywell, Inc. 3,500 191
IBM Corp. 3,000 297
Intel Corp. 9,500 698
McDonnell Douglas 9,500 461
Micron Technology, Inc. 2,100 54
Microsoft Corp. (b) 4,900 589
Motorola, Inc. 3,866 243
National Semiconductor (b) 4,200 65
Northern Telecommunications Limited 4,500 245
Novell, Inc. 7,700 107
Oracle Systems Corp. (b) 10,800 426
Raytheon Co. 5,400 279
Service Corp. International 4,800 276
Sun Microsystem, Inc. (b) 5,500 324
Tektronix 2,600 116
Texas Instruments, Inc. 2,800 140
WMX Technologies 2,323 75
--------
7,355
Transportation - 0.7%
Consolidated Freightways, Inc. 6,400 135
Norfolk Southern 2,300 195
Southwest Airlines 8,500 247
--------
577
Utilities - 7.7%
360 Communications Co. (b) 1,917 46
Airtouch Communications, Inc. 2,900 82
Alltel Corp. 3,300 101
American Electric Power, Inc. 1,849 79
Ameritech 5,517 328
AT&T Corp. 12,500 775
Baltimore Gas & Electric 3,790 108
Bell Atlantic Corp. 3,726 238
Bell South 8,754 371
Carolina Power and Light Co. 4,492 171
Central & South West Corp. 2,900 84
Coastal Corp. 5,700 238
Consolidated Edison Co. 2,000 59
Consolidated Natural Gas 1,795 94
Dominion Resources, Inc. 2,400 96
Duke Power Co. 1,633 84
Enron Corp. 7,300 298
Entergy Corp. 3,300 94
FPL Group, Inc. 1,897 87
GTE Corp. 9,185 411
Houston Industry, Inc. 2,618 64
MCI Communications Corp. 6,100 156
NICOR, Inc. 3,645 103
Nynex Corp. 5,671 269
Ohio Edison Co. 2,367 52
Pacific Gas & Electric 3,900 91
Pacific Telesis 4,295 145
Peco Energy Co. 5,294 138
Public Service Enterprises 2,408 66
SBC Communications 7,150 352
Sonat, Inc. 8,200 369
Southern Co. 6,630 163
Sprint Corp. 4,952 208
U.S. West Communications Group 3,391 108
U.S. West Media Group (b) 3,106 56
Unicom Corp. 2,900 81
Union Electric Co. 1,300 52
--------
6,317
--------
Total Common Stocks 49,211
========
(Cost $38,795)
</TABLE>
50
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000's) (000's)
<S> <C> <C>
- --------------------------------------------------------------------------------
Corporate Bonds and Notes - 5.3%
- --------------------------------------------------------------------------------
AMR Corp.
10.000% due 02/01/01 $ 400 $ 444
9.430% due 05/10/01 1,000 1,095
Cleveland Electric
9.375% due 03/01/17 1,000 912
Long Island Lighting Co.
9.000% due 11/01/22 2,000 1,845
Ohio Power
8.300% due 04/01/97 87 88
---------
Total Corporate Bonds and Notes 4,384
(Cost $4,538)
- --------------------------------------------------------------------------------
U.S Treasury Notes - 6.0%
- --------------------------------------------------------------------------------
5.625% due 06/30/97 5,000 4,992
---------
Total U.S. Treasury Notes 4,992
=========
(Cost $4,988)
- --------------------------------------------------------------------------------
Mortgage-Backed Securities - 27.9%
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation - 4.6%
6.500% due 08/12/26 2,000 1,871
7.000% due 09/12/26 1,000 960
8.500% due 03/01/23 862 892
10.150% due 04/15/06 81 82
---------
3,805
Federal Housing Administration - 0.7%
6.930% due 07/01/14 605 583
Federal National Mortgage Association - 3.7%
7.488% due 12/01/23 (d) 881 909
8.500% due 07/01/02-01/01/08 (e) 1,400 1,443
9.500% due 06/25/18 658 695
---------
3,047
Government National Mortgage Association - 12.6%
6.500% due 08/19/26 5,000 4,647
7.250% due 08/20/24-09/20/24 (d) (e) 2,596 2,639
7.375% due 04/20/23 (d) 2,045 2,068
7.500% due 05/15/17 19 19
8.000% due 09/15/06 87 89
9.500% due 09/15/09-10/15/09 (e) 166 179
10.750% due 09/15/00-10/15/00 (e) 186 196
14.000% due 08/15/12 32 37
16.000% due 10/15/11-04/15/12 (e) 430 508
---------
10,382
Collateralized Mortgage Obligations - 6.3%
Bear Stearns Cos.
9.000% due 01/25/21 13 13
Capstead
8.900% due 12/25/21 340 349
Countrywide
7.757% due 11/25/24 (d) 1,222 1,251
Home Savings
5.969% due 05/25/27 (d) 1,183 1,144
Independent National Mortgage Corp.
7.920% due 11/25/24 (d) 1,222 1,252
PNC Mortgage Securities Corp.
7.500% due 06/25/10 1,147 1,148
---------
5,157
---------
Total Mortgage-Backed Securities 22,974
(Cost $22,831) =========
- --------------------------------------------------------------------------------
Short-Term Instruments - 9.6%
- --------------------------------------------------------------------------------
Discount Notes - 6.8%
du Pont (E.I.) de Nemours
5.340% due 07/24/96 500 $ 498
Eli Lilly & Co.
5.300% due 07/12/96 900 899
Emerson Electric Co.
5.320% due 07/08/96 600 599
Ford Motor Credit Corp.
5.370% due 07/11/96 1,500 1,498
G. E. Capital Corp.
5.290% due 09/16/96 1,100 1,087
Pitney Bowes Credit, Inc.
5.320% due 07/10/96 500 499
Procter & Gamble
5.250% due 08/22/96 200 198
Southwestern Public Service
5.420% due 07/22/96 300 300
---------
5,578
Repurchase Agreement - 2.5%
State Street Bank
4.000% due 07/01/96 2,103 2,103
(Dated 06/28/96. Collateralized by
U.S. Treasury Bond 8.750% due 11/15/08
valued at $2,156,500. Repurchase
proceeds are $2,103,701.)
U.S. Treasury Bill - 0.3%
4.890% due 8/22/96-11/14/96 (c) (e) 235 233
---------
Total Short-Term Instruments 7,914
(Cost $7,914) =========
Total Investments (a) - 108.4% $ 89,475
(Cost $79,066)
Written Options (f) - 0.0% (2)
(Premium $3)
Other Assets and Liabilities (Net) - (8.4%) (6,911)
---------
Net Assets - 100.0% $ 82,562
=========
</TABLE>
51
<PAGE>
SCHEDULE OF INVESTMENTS (Cont.)
Balanced Fund
June 30, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
Notes to Schedule of Investments ($ in thousands):
(a) At June 30, 1996, the net unrealized appreciation
(depreciation) of investments based on cost for
federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 11,539
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (1,248)
-----------
Unrealized appreciation-net $ 10,291
===========
(b) Non-income producing security.
(c) Securities with an aggregate market value of
$233 have been segregated with the custodian
to cover margin requirements for the following
open future contracts at June 30, 1996:
<CAPTION>
Unrealized
Type Contracts Appreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S Treasury 10 Year Note (9/96) 109 $ 174
U.S Treasury 30 Year Note (9/96) 10 27
-----------
$ 201
===========
(d) Variable rate security. The rate listed is as of June 30, 1996.
(e) Securities are grouped by coupon rate and represent a range of maturities.
(f) Premium received on Written Put Options:
<CAPTION>
Premium Market
Type Contracts Received Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
CME Eurodollar March Futures
Strike @ 93.00 Exp. 3/97 8 $ 3 $ 2
</TABLE>
See Notes to Financial Statements
52
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
1. Significant Accounting Policies
PIMCO Funds: Equity Advisors Series (the "Trust") was established as a
Massachusetts business trust on August 24, 1990. The Trust is registered under
the Investment Company Act of 1940, as amended, as a no-load, open-end
investment management company. The Trust currently consists of thirteen
separate investment funds (the "Funds"): the NFJ Equity Income Fund; the NFJ
Diversified Low P/E Fund; the NFJ Small Cap Value Fund; the Cadence Capital
Appreciation Fund; the Cadence Mid Cap Growth Fund; the Cadence Micro Cap Growth
Fund; the Cadence Small Cap Growth Fund; the Columbus Circle Investors Core
Equity Fund; the Columbus Circle Investors Mid Cap Equity Fund; the Parametric
Enhanced Equity Fund; the Blairlogie Emerging Markets Fund; the Blairlogie
International Active Fund; and the Balanced Fund. The following is a summary of
significant accounting policies consistently followed by the Trust in
preparation of its financial statements. These policies are in conformity with
generally accepted accounting principles.
Security Valuation. Portfolio securities and other financial instruments for
which market quotations are readily available are stated at market value. Market
value is determined on the basis of last reported sales prices, or if no sales
are reported, as is the case for most securities traded over-the-counter, the
mean between representative bid and asked quotations obtained from a quotation
reporting system or from established market makers. Foreign currency amounts are
converted to U.S. dollars using foreign exchange quotations received from
independent dealers. Short-term investments having a maturity of 60 days or
less are valued at amortized cost, which approximates market value. Certain
fixed income securities for which daily market quotations are not readily
available may be valued, pursuant to guidelines established by the Board of
Trustees, with reference to fixed income securities whose prices are more
readily obtainable.
Securities Transactions and Investment Income. Securities transactions are
recorded as of the trade date. Securities purchased or sold on a when-issued or
delayed-delivery basis may be settled a month or more after the trade date.
Realized gains and losses from securities sold are recorded on the identified
cost basis. Dividend income is recorded on the ex-dividend date. Interest
income is recorded on the accrual basis and includes the accretion of discounts
and amortization of premiums.
Dividends and Distributions to Shareholders. Dividends from net investment
income are declared and paid quarterly to shareholders of record by the NFJ
Equity Income, NFJ Diversified Low P/E, NFJ Small Cap Value, Cadence Capital
Appreciation, Cadence Mid Cap Growth, Cadence Micro Cap Growth, Cadence Small
Cap Growth, Parametric Enhanced Equity, and Balanced Funds. Dividends from net
investment income are declared and paid semi-annually to shareholders of record
by the Columbus Circle Investors Core Equity Fund. The Columbus Circle
Investors Mid Cap Equity, Blairlogie Emerging Markets, and Blairlogie
International Active Funds distribute all of their net investment income at
least annually. Effective July 1, 1996, dividends from net investment income
will be declared and paid annually to shareholders of record by the NFJ Small
Cap Value, Cadence Capital Appreciation, Cadence Mid Cap Growth, Cadence Micro
Cap Growth, Cadence Small Cap Growth, Columbus Circle Investors Core Equity,
Columbus Circle Investors Mid Cap Equity, Parametric Enhanced Equity, Blairlogie
Emerging Markets, and Blairlogie International Active Funds. Dividends from net
investment income will continue to be paid quarterly to the NFJ Equity Income,
NFJ Diversified Low P/E, and Balanced Funds. Net long-term capital gains earned
by a Fund, if any, will be distributed no less frequently than once each year.
Foreign exchange gains or losses on investments and the income generated from
such investments, arising from fluctuations of exchange rates of the non-dollar
denominated investments relative to the U.S. dollar, are reported to
shareholders as income in accordance with the provisions of the Internal Revenue
Code.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for such items as
wash sales, foreign currency transactions, net operating losses and capital loss
carryforwards. Certain amounts have been reclassified between undistributed net
investment income and accumulated undistributed net realized gains in order to
more appropriately conform financial accounting and tax characterizations of
dividend distributions.
During the period ended June 30, 1996, the Cadence Small Cap Growth Fund
incurred two redemptions in kind, resulting in realized gains of $11,036,613. A
redemption in kind occurs when a Fund pays a shareholder with portfolio
securities in lieu of cash.
53
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont.)
June 30, 1996
Multi-class Operations. The Trust is authorized to offer investors a choice of
two classes of shares, the Institutional Class and the Administrative Class.
Each class has equal rights as to assets and voting privileges, while each has
exclusive voting rights with respect to its distribution plan. The NFJ Equity
Income, NFJ Small Cap Value, Cadence Mid Cap Growth, Cadence Micro Cap Growth,
Cadence Small Cap Growth, Columbus Circle Investors Core Equity, Blairlogie
Emerging Markets and Blairlogie International Active Funds had commenced multi-
class operations as of June 30, 1996.
Income and non-class specific expenses are allocated daily to each class of
shares based on the relative value of settled shares as of the beginning of each
day, adjusted for purchase orders received in Federal Funds prior to 12:00 p.m.,
Eastern time. Realized and unrealized capital gains and losses are allocated to
each class of shares based on relative net assets as of the beginning of each
day adjusted for the prior day's capital share activity.
Federal Income Taxes. Each Fund intends to qualify as a regulated investment
company and distribute all of its taxable income and net realized gains, if
applicable, to shareholders. Accordingly, no provision for Federal income taxes
has been made.
Foreign Taxes on Dividends. Dividend income in the statement of operations is
shown net of foreign taxes withheld on dividends from foreign securities.
Foreign taxes withheld were as follows: NFJ Diversified Low P/E Fund - $1,103;
Cadence Capital Appreciation Fund - $11,001; Cadence Mid Cap Growth Fund -
$1,460; Columbus Circle Investors Core Equity Fund - $2,410; Parametric Enhanced
Equity Fund - $5,298; Blairlogie Emerging Markets Fund - $105,838; Blairlogie
International Active Fund - $113,535; and Balanced Fund - $3,106.
Equalization. Prior to July 1, 1996, all of the Funds, except the Balanced Fund,
followed the accounting practice known as equalization, by which a portion of
the proceeds from sales and costs of repurchases of Fund shares, equivalent on a
per share basis to the amount of distributable investment income on the date of
the transaction, was credited or charged to undistributed income. As a result,
undistributed investment income per share was unaffected by sales or redemptions
of Fund shares. As of July 1, 1996, the Funds discontinued using equalization.
This change has no effect on the Funds' net assets, net asset values per share,
or their net increases (decreases) in net assets resulting from operations.
Futures and Options. Certain Funds are authorized to enter into futures
contracts and options. The primary risks associated with the use of futures
contracts and options are imperfect correlation between the change in market
value of the securities held by a Fund and the prices of futures contracts and
options, the possibility of an illiquid market, and the inability of the
counterparty to meet the terms of the contract. Futures contracts and purchased
options are valued based upon their quoted daily settlement prices. The premium
received for a written option is recorded as an asset with an equal liability
which is marked-to-market based on the option's quoted daily settlement price.
Fluctuations in the value of such instruments are recorded as unrealized
appreciation (depreciation) until terminated, at which time realized gains and
losses are recognized.
Currencies with an aggregate market value of $74,819 have been segregated with
the custodian to cover margin requirements for the following open stock index
futures contracts at June 30, 1996 ($ in thousands):
Blairlogie International Active Fund
<TABLE>
<CAPTION>
Unrealized
Appreciation
Type Contracts (Depreciation)
----------------------------------------------
<S> <C> <C>
DTB DAX (9/96) 3 $ 4
LIFFE FT-SE 100 (9/96) 11 (25)
------------
$ (21)
============
</TABLE>
Forward Currency Contracts. Certain Funds are authorized to enter into forward
foreign exchange contracts for the purpose of hedging against foreign exchange
risk arising from the Fund's investment or anticipated investment in securities
denominated in foreign currencies. The aggregate principal amounts of the
contracts for which delivery is anticipated are recorded in the Fund's account,
while such amounts are not recorded if the Fund intends to settle the contracts
prior to delivery. All commitments are marked-to-market daily at the applicable
translation rates and any resulting unrealized gains or losses are recorded in
the Fund's financial statements. The Fund records realized gains or losses at
the time the forward contract is extinguished by entry into a closing
transaction or by delivery of the currency. Risks may arise upon entering these
contracts from the potential inability of counterparties to meet the terms of
their contracts
54
<PAGE>
and from unanticipated movements in the value of a foreign currency relative to
the U.S. dollar. The following foreign forward currency contracts were
outstanding at June 30, 1996 (amounts in thousands):
Blairlogie International Active Fund
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation
Type by Contract Month (Depreciation)
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell Japanese Yen 889,779 7/96 $ 128
Buy Japanese Yen 850,000 7/96 (54)
------------
$ 74
============
</TABLE>
Estimates. The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
2. Fees, Expenses, and Related Party Transactions
Investment Advisory Fee. PIMCO Advisors L.P. ("PIMCO Advisors") serves as
investment advisor to the Trust, pursuant to an Investment Advisory Agreement.
PIMCO Advisors receives from the Trust a fee based on an annual percentage of
the average daily net assets of each Fund as follows: for the NFJ Equity Income,
NFJ Diversified Low P/E, Cadence Capital Appreciation, Cadence Mid Cap Growth,
Parametric Enhanced Equity, and Balanced Funds - .45%; for the Columbus Circle
Investors Core Equity Fund - .57%; for the NFJ Small Cap Value and Blairlogie
International Active Funds - .60%; for the Columbus Circle Investors Mid Cap
Equity Fund - .63%; for the Blairlogie Emerging Markets Fund - .85%; for the
Cadence Small Cap Growth Fund - 1.00%; and for the Cadence Micro Cap Growth
Fund - 1.25%. Pursuant to the Portfolio Management Agreements, which became
effective November 15, 1994, PIMCO Advisors employs six of its sub-partnerships
as portfolio managers for the Funds. The advisory fees received by PIMCO
Advisors are paid to each of the portfolio managers, except for the Balanced
Fund. For the fixed income segment of the Balanced Fund, PIMCO Advisors pays
.25% of the average daily net assets to Pacific Investment Management Company
("PIMCO"). For the common stock segment of the Balanced Fund, PIMCO Advisors
pays .45% of the average daily net assets to Parametric Portfolio Associates.
Administration Fee. PIMCO provides administrative services to the Trust for
which it receives from the Trust an administrative fee at the annual rate of
.25% of the average daily net assets of each of the Funds other than the
Blairlogie Emerging Markets and Blairlogie International Active Funds, for which
the fee is at the annual rate of .50% of the average daily net assets of the
Fund.
Expenses. The Trust is responsible for the following expenses: (i) salaries
and other compensation of any of the Trust's executive officers and employees
who are not officers, directors, stockholders or employees of PIMCO Advisors,
PIMCO, or its subsidiaries or affiliates; (ii) taxes and governmental fees;
(iii) brokerage fees and commissions and other portfolio transaction expenses;
(iv) the cost of borrowing money, including interest expenses; (v) fees and
expenses of the Trustees who are not "interested persons" of the Advisor, PIMCO,
Portfolio Managers, or the Trust, and any counsel retained exclusively for their
benefit; (vi) extraordinary expenses, including costs of litigation and
indemnification expenses; (vii) expenses such as organizational expenses, which
are capitalized in accordance with generally accepted accounting principles; and
(viii) any expenses allocated or allocable to a specific class of shares, which
include service fees payable with respect to the Administrative Class shares and
may include certain other expenses as permitted by the Trust's Multiple Class
Plan adopted pursuant to Rule 18f-3 under the Investment Company Act of 1940 and
subject to review and approval by the Trustees.
Expense Limitation. PIMCO Advisors has undertaken to reimburse the Trust for
its operating expenses, exclusive of class specific service fees, brokerage fees
or other transactional expenses, taxes paid by a fund, interest on borrowing and
extraordinary expenses, in excess of the sum of advisory and administration fees
as a percentage of daily net assets of each Fund (consolidating both classes of
shares), through June 30, 1997. Reimbursements of $401, $3,147, $42, $195, $16,
and $74 were due to the NFJ Equity Income, Cadence Small Cap Growth, Columbus
Circle Investors Mid Cap Equity, Parametric Enhanced Equity, Blairlogie
International Active, and Balanced Funds, respectively, as of June 30, 1996. No
other reimbursements were due as of June 30, 1996.
55
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont.)
June 30, 1996
Related Party Transactions. PIMCO Advisors Distribution Company ("PADCO"), an
indirect wholly-owned subsidiary of PIMCO Advisors, serves as the distributor of
the Trust's shares. Pursuant to a Distribution Agreement, all expenses relating
to the distribution of Trust shares will be paid by PIMCO Advisors, PIMCO or
PADCO out of past profits and resources which may include fees received by PIMCO
Advisors or the administrator.
Certain officers of PIMCO Advisors are also officers of the Trust.
3. Purchases and Sales of Securities
Purchases and sales of securities (excluding short-term investments) for the
eight months ended June 30, 1996 were as follows ($ in thousands):
<TABLE>
<CAPTION>
U.S. Government/Agency All Other
-------------------------------------------------------------
Purchases Sales Purchases Sales
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NFJ Equity Income Fund $ 67,776 $ 67,713
NFJ Diversified Low P/E Fund 39,988 6,400
NFJ Small Cap Value Fund 12,819 20,350
Cadence Capital Appreciation Fund 257,262 198,947
Cadence Mid Cap Growth Fund 176,667 150,688
Cadence Micro Cap Growth Fund 39,118 39,591
Cadence Small Cap Growth Fund 35,245 39,678
Columbus Circle Investors Core Equity Fund 39,056 25,809
Columbus Circle Investors Mid Cap Equity Fund 7,655 8,372
Parametric Enhanced Equity Fund 47,311 49,043
Blairlogie Emerging Markets Fund 55,755 58,859
Blairlogie International Active Fund 45,709 41,040
Balanced Fund $99,997 $97,007 13,728 10,142
</TABLE>
4. Transactions in Written Call and Put Options
Transactions in written call and put options were as follows (amounts in
thousands):
<TABLE>
<CAPTION>
Columbus Circle Investors
Core Equity Fund Balanced Fund
--------------------------------------------------------------
Premium Contracts Premium Contracts
--------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance at 10/31/95 $ 2 8 $ 0 0
Sales 144 600 3 8
Closing Buys (116) (503) 0 0
Expirations (6) (54) 0 0
Exercised (18) (35) 0 0
- -------------------------------------------------------------------------------------------
Balance at 06/30/96 $ 6 16 $3 8
===========================================================================================
</TABLE>
56
<PAGE>
5. Shares of Beneficial Interest
The Trust may issue an unlimited number of shares of beneficial interest with a
$.0001 par value. Changes in shares of beneficial interest were as follows
(shares in thousands):
<TABLE>
<CAPTION>
NFJ NFJ NFJ
NFJ Equity Diversified NFJ Small Cap Cadence
Period Ended Equity Income Low Small Cap Value Capital
June 30, 1996 Income Admin. P/E Value Admin. (a) Appreciation
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 2,560 524 2,925 201 437 5,442
Issued as reinvestment
of dividends 514 29 207 192 27 947
Shares redeemed (3,957) (139) (53) (1,028) (152) (1,070)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) (883) 414 3,079 (635) 312 5,319
==============================================================================================================
Cadence Cadence Cadence
Cadence Mid Cap Cadence Micro Cap Cadence Small Cap
Period Ended Mid Cap Growth Micro Cap Growth Small Cap Growth
June 30, 1996 Growth Admin. Growth Admin. (b) Growth Admin.
- --------------------------------------------------------------------------------------------------------------
Shares sold 3,438 14 1,333 40 238 22
Issued as reinvestment
of dividends 301 2 88 0 239 2
Shares redeemed (2,281) (10) (1,411) (9) (2,414) (45)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) 1,458 6 10 31 (1,937) (21)
==============================================================================================================
Columbus Columbus Columbus
Circle Circle Circle Blairlogie
Investors Investors Investors Parametric Blairlogie Emerging
Period Ended Core Core Equity Mid Cap Enhanced Emerging Markets
June 30, 1996 Equity Admin. Equity Equity Markets Admin.
- --------------------------------------------------------------------------------------------------------------
Shares sold 162 1,313 36 2,985 2,675 33
Issued as reinvestment
of dividends 5 52 6 210 14 0
Shares redeemed (9) (825) (118) (3,078) (2,853) (78)
- --------------------------------------------------------------------------------------------------------------
Net increase 158 540 (76) 117 (164) (45)
==============================================================================================================
Blairlogie
Blairlogie International
Period Ended International Active
June 30, 1996 Active Admin. Balanced
- ---------------------------------------------------------------------------
Shares sold 1,178 428 821
Issued as reinvestment
of dividends 182 3 704
Shares redeemed (1,178) (39) (538)
- ---------------------------------------------------------------------------
Net increase 182 392 987
===========================================================================
</TABLE>
(a) From commencement of operations, November 1, 1995.
(b) From commencement of operations, April 1, 1996.
57
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont.)
JUNE 30, 1996
<TABLE>
<CAPTION>
NFJ
Year or NFJ Equity NFJ NFJ Cadence Cadence
Period Ended Equity Income Diversified Small Cap Capital Mid Cap
October 31, 1995 Income Admin.(a) Low P/E Value Appreciation Growth
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares Sold 2,186 11 10 367 3,256 3,440
Issued as reinvestment
of dividends 513 1 171 283 143 35
Shares redeemed (1,547) (1) (365) (559) (1,858) (1,769)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 1,152 11 (184) 91 1,541 1,706
=======================================================================================================================
Columbus Columbus
Cadence Cadence Circle Circle
Year or Mid Cap Cadence Cadence Small Cap Investors Investors
Period Ended Growth Micro Cap Small Cap Growth Core Core Equity
October 31, 1995 Admin.(a) Growth Growth Admin.(b) Equity (c) Admin.(d)
- -----------------------------------------------------------------------------------------------------------------------
Shares sold 99 1,996 887 26 636 2,012
Issued as reinvestment
of dividends 0 0 199 0 1 3
Shares redeemed (50) (206) (168) 0 (25) (78)
- -----------------------------------------------------------------------------------------------------------------------
Net increase 49 1,790 918 26 612 1,937
=======================================================================================================================
Columbus
Circle Blairlogie Blairlogie
Year or Investors Parametric Blairlogie Emerging Blairlogie International
Period Ended Mid Cap Enhanced Emerging Markets International Active
October 31, 1995 Equity (c) Equity Markets Admin. Active Admin.(a)
- -----------------------------------------------------------------------------------------------------------------------
Shares Sold 671 872 5,234 130 4,157 83
Issued as reinvestment
of dividends 0 185 248 0 104 1
Shares redeemed (24) (1,427) (3,774) (57) (747) (26)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (decrease) 647 (370) 1,708 73 3,514 58
=======================================================================================================================
</TABLE>
Year Ended
October 31, 1995 Balanced
- ----------------------------------------
Shares sold 1,847
Issued as reinvestment
of dividends 311
Shares redeemed (8,679)
- ----------------------------------------
Net decrease (6,521)
========================================
(a) From commencement of operations, November 30, 1994.
(b) From commencement of operations, September 27, 1995.
(c) From commencement of operations, December 28, 1994.
(d) From commencement of operations, May 31, 1995.
6. Change in Portfolio Manager for the Balanced Fund
Effective August 1, 1996, NFJ Investment Group and Cadence Capital Management
replaced Parametric Portfolio Associates as managers of the common stock segment
of the Balanced Fund. There was no change to the advisory fee. PIMCO continues
to manage the fixed income segment of the balanced fund.
7. Federal Income Tax Matters
As of June 30, 1996, the Blairlogie Emerging Markets fund has a capital loss
carryforward that was realized in the prior year of $11,876,066. This capital
loss is available to offset future realized capital gains through June 30, 2003.
The Fund will resume capital gain distributions in the future to the extent
gains are realized in excess of the available carryforwards.
The Cadence Micro Cap Growth Fund had a tax operating loss of $244,153 during
the period ended June 30, 1996 which resulted in a permanent difference between
book income and tax-basis income. This difference was reclassified from
undistributed net investment income (loss) to paid in capital on the statement
of assets and liabilities.
58
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of the PIMCO Funds: Equity
Advisors Series
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
the NFJ Equity Income Fund, NFJ Diversified Low P/E Fund, NFJ Small
Cap Value Fund, Cadence Capital Appreciation Fund, Cadence Mid Cap
Growth Fund, Cadence Micro Cap Growth Fund, Cadence Small Cap Growth
Fund, Columbus Circle Investors Core Equity Fund, Columbus Circle
Investors Mid Cap Equity Fund, Parametric Enhanced Equity Fund,
Blairlogie Emerging Markets Fund, Blairlogie International Active
Fund, and Balanced Fund (series of the PIMCO Funds: Equity Advisors
Series) at June 30, 1996, the results of each of their operations, the
changes in each of their net assets and the financial highlights for
the period from November 1, 1995 through June 30, 1996, in conformity
with generally accepted accounting principles. These financial
statements and the financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds'
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of portfolio positions at June 30, 1996 by
correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were
not received, provide a reasonable basis for the opinion expressed
above. The financial statements of the PIMCO Funds: Equity Advisors
Series for periods prior to November 1, 1995 were audited by other
independent accountants whose report dated December 15, 1995 expressed
an unqualified opinion on those statements.
PRICE WATERHOUSE LLP
Kansas City, Missouri
August 12, 1996
59
<PAGE>
FEDERAL INCOME TAX INFORMATION
As required by the Internal Revenue Code regulations shareholders must
be notified within 60 days of the Trust's fiscal year end (June 30,
1996) as to the tax status of the dividend received deduction for
corporations.
Dividend Received Deduction. Corporate shareholders are generally
entitled to take the dividend received deduction on the portion of the
Fund's dividend distribution that qualifies under tax law. The
percentage of each Fund's fiscal 1996 ordinary income dividends that
qualify for the corporate dividend received deduction are as follows:
NFJ Equity Income Fund - 58.44%; NFJ Diversified Low P/E Fund -
59.74%; NFJ Small Cap Value Fund - 47.46%; Cadence Capital
Appreciation Fund - 42.80%; Cadence Mid Cap Growth Fund - 53.74%;
Columbus Circle Investors Core Equity Fund - 14.19%; Columbus Circle
Investors Mid Cap Equity Fund - 7.25%; Parametric Enhanced Equity
Fund - 79.55%; Balanced Fund - 37.32%.
Shareholders are advised to consult their own tax advisor with respect
to the tax consequences of their investment in the Trust. However,
income received by tax-exempt recipients need not be reported as
taxable income. In January 1997, you will be advised on IRS form 1099-
DIV as to the federal tax status of the dividends and distributions
received by you in calendar year 1996.
60
<PAGE>
Trustees and Officers
William D. Cvengros, Chairman, President & Trustee
Richard L. Nelson, Trustee
Lyman W. Porter, Trustee
Alan Richards, Trustee
Garlin G. Flynn, Secretary
R. Mark Brandenberger, Treasurer
Investment Advisor
PIMCO Advisors L.P.
840 Newport Center Drive, Suite 360
Newport Beach, California 92660
Administrator
Pacific Investment Management Company
840 Newport Center Drive, Suite 360
Newport Beach, California 92660
Transfer Agent and Custodian
Investors Fiduciary Trust Company
127 West 10th Street
Kansas City, Missouri 64105
Counsel
Dechert Price & Rhoads
1500 K. Street N.W.
Washington, D.C. 20005
Independent Accountants
Price Waterhouse LLP
1055 Broadway, Suite 1000
Kansas City Missouri 64105
<PAGE>
-----------------------------------------
- ----------------------------------------------------------------
--------------------------------------------------------
PIMCO FUNDS:
EQUITY ADVISORS SERIES
840 Newport Center Drive, Suite 360
Newport Beach, CA 92660
800-927-4648
--------------------------------------------------------
This report is submitted for the general information of the shareholders
of the PIMCO Funds: Equity Advisors Series. It is not authorized
for distributions to prospective investors unless accompanied or
preceded by an effective Prospectus for the PIMCO Funds: Equity
Advisors Series, which contains information covering its investment
policies as well as other pertinent information.
- -------------------------------------------------------------------------
-----------------------------------------
