CLEARWATER INVESTMENT TRUST
February 2, 1996
TO: Our Unit Holders
On December 31, 1995, the net asset value of the Clearwater Growth Fund was
$17.01 per unit. The net asset value of the Clearwater Small Cap Fund was $11.47
per unit. On a total return basis for 1995, the Clearwater Growth Fund increased
by 32.6% and the Clearwater Small Cap Fund increased by 26.3%. For comparative
purposes, the S&P 500 increased by 37.5% and the Russell 2000 increased by
28.4%. For the fourth quarter, the Clearwater Growth Fund increased 0.8% and the
Clearwater Small Cap Fund decreased 0.1%. The S&P 500 increased 6.0% and the
Russell 2000 increased 2.2%.
At year-end, the Clearwater Growth Fund paid a dividend of $1.045 per unit and
the Clearwater Small Cap Fund paid a dividend of $1.020 per unit. Whenever it is
practical, an attempt is made to offset gains with losses to defer your tax
liabilities.
Sit Investment Associates, Inc., the subadvisor for the Clearwater Growth Fund,
made the following comments on the year and outlook for 1996:
"1995 was an outstanding year for U.S. financial assets as well as the
Clearwater Growth Fund. A major reason for the strong results was that
cash reserves were maintained at low levels, averaging slightly over
three percent during the year. This bullish posture reflected SIA's
optimistic outlook for equities, generally, and growth stocks, in
particular, at the end of 1994.
As was the case in 1994, large capitalization stocks outperformed small
cap issues in 1995, and the differential in results was even greater.
The S&P 500 Index advanced 37.5% in 1995 whereas most medium and
smaller company indices were up smaller amounts. The exception was the
NASDAQ OTC Composite Index, but its results were heavily influenced by
a small group of very large technology stocks (Intel, Microsoft, etc.)
that biased the final figures. Shown below is a sample of market
benchmarks:
Total Returns
-------------
Large Cap Indices 1994 1995
----------------- ---- ----
Russell 1000 Growth Index 0.4% 37.8%
S&P 500 Index ........... 1.3 37.5
Mid Cap Indices
---------------
Russell Mid Cap Index ... -2.1 34.5
S&P Midcap 400 Index .... -3.6 30.9
<PAGE>
Small Cap Indices
-----------------
Russell 2000 Index ...... -1.8 28.4
Other
-----
Lipper Growth Funds ..... -1.8 31.5
In May of 1994, the investment guidelines of the Clearwater Growth Fund
were changed to include the use of an increased allocation to smaller
and medium-sized companies and SIA has moved the portfolio in this
direction. The weighted average capitalization of the portfolio as of
June 1994 was equal to 85% of the S&P 500 Index capitalization and had
moved to 66% as of December 1995. This move toward smaller companies
has not benefited the portfolio over the near term, but should be
additive over the longer term based on historical experience. During
1995, the portfolio's most heavily weighted industry sectors were
technology, health care, and financial services. Within the S&P 500
Index, these were the three best-performing subcomponents.
Despite the robust financial asset rewards achieved in 1995, further
potential appears to remain, assuming the political arena does not
become totally disruptive. Many technical measures suggest that further
equity market gains are achievable and they are supported by valuation
measures that correlate stock returns with interest rates. However, the
returns obtainable in 1996 should not match the extraordinary results
of 1995. The outlook for growth stocks appears particularly attractive
on a relative basis because overall "market" earnings have been
decelerating sharply while growth stock earnings have held up well. As
of December 31, 1995, the portfolio's projected earnings growth rate
was +24.7% for calendar 1996 versus less than +5 for the S&P 500 Index.
The most heavily weighted equity sectors in portfolios continue to be
those emphasized in 1995: technology, health care and financial
services."
[GRAPHIC OMITTED]
One Year Five Year Inception 6/19/87
Clearwater Growth Fund 32.6% 15.4% 10.5%
S&P 500 37.5% 16.5% 11.9%
<PAGE>
Kennedy Capital Management, the subadvisor for the Small Cap Fund, made the
following comments:
"This past year was truly an outstanding one for U.S. stocks and
bonds. The S&P 500 Index returned 34.1 percent (prior to dividends) to
investors. This growth was fueled by surging profits and falling
interest rates. Bond yields reversed their 1994 course and fell all
along the curve but particularly at the long end where they shed 1.93
%. Coincidentally, the 30 year bond returned exactly 34.1% in 1995. In
contrast, during 1994 the S&P index rose just about one percent and an
investor in long bonds lost seven percent. A year ago January, most
market pundits were predicting a very mediocre 1995. This remarkable
double-barreled rally of 1995 provides some very important lessons.
First, it underscores the inability of most of us to forecast,
especially the future. Economists, is has been said, predict the future
by looking in their rear view mirror. That certainly seemed to be the
case a year ago, Second, 1995 clearly illustrates how hazardous it is
for investors to engage in market timing. A "cautious" investor who
moved to cash in January of 1994, would probably have been very
reluctant to plunge back into the market in April after the ten percent
rally in the first quarter of 1995. That hesitation could have caused
her, or him, to miss the rest of the 24 percent rise in 1995.
Small stocks did less well than large ones in 1995. The Russell 2000
returned 28.4 percent with dividends. Furthermore, the best performing
small stocks were in the technology sector. Because KCM buys stocks
that others are not, we tended to have only limited exposure to
technology. The Russell 2000 value index was up only 25.7 percent with
dividends.
What do we see for 1996? We think that the market is vulnerable to a
technical correction. Nevertheless, we do not believe that a serious
market downturn is probable. Inflation is in check and interest rates
should remain low. The most serious threat is the possibility of
earnings disappointments. Capital spending could slow after several
years of significant growth and this would dampen the economy. We do
not, however, expect a recession. In sum, we expect the market to rise
modestly in 1996. Such a prediction places us squarely, and probably
dangerously, in the "consensus camp" of market predictions.
Nevertheless, and without regard to the accuracy of the above market
forecast, we have seen a sharp increase in IPOs in 1995. While KCM
rarely buys IPOs, this fresh crop of newly minted stocks is fodder for
our investment approach. Many of these small companies are bound to
disappoint, given the high expectations set for them. Some of these
will be subsequently abandoned by analysts and institutional investors.
That is the time when KCM can find good values
<PAGE>
[GRAPHIC OMITTED]
One Year Five Year Inception 12/31/93
Clearwater Small Cap Fund 26.3% NA 8.6%
Russell 2000 28.4% NA 12.3%
Clearwater Investment Trust Clearwater Management Company
- --------------------------- -----------------------------
F. T. Weyerhaeuser, Chairman & Treasurer F. T. Weyerhaeuser, Chairman &
Samuel B. Carr, Jr. Treasurer
Stanley R. Day, Jr. W. T. Weyerhaeuser, V.P. &
Robert J. Phares Secretary
E. C. Driscoll
W. John Driscoll
D. C. Titcomb, V.P. & Secretary P. W. Pascoe
F. W. Piasecki
D. C. Titcomb
G. H. Weyerhaeuser, Jr.
<PAGE>
Independent Auditors' Report
The Board of Trustees and Shareholders
Clearwater Investment Trust:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments in securities, of Clearwater Small Cap and
Clearwater Growth Fund (funds within Clearwater Investment Trust) as of December
31, 1995 and the related statements of operations for the year then ended, and
the statements of changes in net assets for each of the years in the two-year
period then ended, and the financial highlights for each of the years in the
four-year period then ended. These financial statements and the financial
highlights are the responsibility of the funds' management. Our responsibility
is to express an opinion on these financial statements and the financial
highlights based on our audits. The financial highlights for the year ended
December 31, 1991 for the Clearwater Small Cap Fund and the Clearwater Growth
Fund were audited by other auditors, whose report dated January 21, 1992
expressed an unqualified opinion on the financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Investment securities held in custody are confirmed to us by the
custodian. As to securities purchased and sold, but not received or delivered,
we request confirmations from brokers, and where replies are not received, we
carry out other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
Clearwater Small Cap Fund and Clearwater Growth Fund at December 31, 1995, the
results of their operations for the year then ended, and the changes in their
net assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the four-year period ended
December 31, 1995, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
February 2, 1996
<PAGE>
<TABLE>
CLEARWATER INVESTMENT TRUST
Statements of Assets and Liabilities
December 31, 1995
<CAPTION>
Clearwater Clearwater
Small Cap Fund Growth Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investments in securities at market value (note 2),
(identified cost: $24,818,972 and $54,245,256,
respectively) $ 26,912,199 84,765,147
Cash in bank on demand deposit 4,443 26,484
Receivable for investment securities sold 0 1,077,726
Accrued dividend and interest receivable 18,889 81,240
Other receivables 41 1,013
- ---------------------------------------------------------------------------------------------------------------------------
Total assets 26,935,572 85,951,610
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------------------------
Payable for investment securities purchased 0 952,214
Accrued management fee 88,334 224,731
Payable to Adviser (note 5) 20,000 0
Other payables 1,705 0
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities 110,039 1,176,945
- ---------------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 26,825,533 84,774,665
===========================================================================================================================
Represented by:
Capital stock and additional paid-in capital--
authorized unlimited number of shares at no par
value for each Fund; outstanding 2,338,666 and
4,983,002 shares, respectively (note 2) 24,710,221 54,229,404
Undistributed net investment income 1,489 0
Accumulated net realized gains 20,596 25,370
Unrealized appreciation of investments 2,093,227 30,519,891
- ---------------------------------------------------------------------------------------------------------------------------
Total--representing net assets
applicable to outstanding capital stock 26,825,533 84,774,665
===========================================================================================================================
Net asset value per share of outstanding
capital stock $ 11.47 17.01
===========================================================================================================================
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
CLEARWATER INVESTMENT TRUST
Statements of Operations
For the year ended December 31, 1995
<CAPTION>
Clearwater Clearwater
Small Cap Fund Growth Fund
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Income:
Dividends (net of foreign taxes withheld of
$0 and $1,521, respectively) $ 300,085 714,455
Interest 95,035 160,944
- ----------------------------------------------------------------------------------------------------------------------------
Total income 395,120 875,399
- ----------------------------------------------------------------------------------------------------------------------------
Expenses (note 5):
Management fee 312,702 831,562
- ----------------------------------------------------------------------------------------------------------------------------
Total expenses 312,702 831,562
- ----------------------------------------------------------------------------------------------------------------------------
Investment income--net 82,418 43,837
- ----------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gains on investments:
Net realized gains on investments 2,170,720 5,008,130
Net change in unrealized appreciation or
depreciation of investments 3,282,565 16,347,374
- ----------------------------------------------------------------------------------------------------------------------------
Net gain on investments 5,453,285 21,355,504
- ----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $ 5,535,703 21,399,341
============================================================================================================================
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
CLEARWATER INVESTMENT TRUST
Statements of Changes in Net Assets
<CAPTION>
Clearwater Small Cap Fund Clearwater Growth Fund
Year ended December 31 Year ended December 31
----------------------------------------------------------------------------
1995 1994 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Investment income, net $ 82,418 265,711 43,837 258,787
Net realized gain on investments 2,170,720 2,132,393 5,008,130 4,541,749
Net change in unrealized appreciation
or depreciation of investments 3,282,565 (3,606,956) 16,347,374 (4,079,200)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting
from operations 5,535,703 (1,208,852) 21,399,341 721,336
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Investment income, net (80,929) (265,711) (43,837) (258,787)
Excess distribution of net investment
income 0 (572) (2,342) (141)
Net realized gains (2,150,083) (2,132,393) (4,980,550) (4,541,617)
Excess distribution of net realized gains 0 (41) 0 0
Tax return of capital 0 (2,017) 0 (196)
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders (2,231,012) (2,400,734) (5,026,729) (4,800,741)
- -----------------------------------------------------------------------------------------------------------------------------
Capital share transactions (note 4):
Proceeds from sales 3,891,971 4,570,373 50,000 122,000
Shares issued for reinvestment of
distributions 1,647,305 3,152,653 2,938,222 10,501,198
Payments for shares redeemed (16,824) (87,305) (585,274) (1,581,274)
- -----------------------------------------------------------------------------------------------------------------------------
Increase in net assets
from capital share
transactions 5,522,452 7,635,721 2,402,948 9,041,924
- -----------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 8,827,143 4,026,135 18,775,560 4,962,519
Net assets at beginning of year 17,998,390 13,972,255 65,999,105 61,036,586
- -----------------------------------------------------------------------------------------------------------------------------
Net assets at end of year (including
undistributed net investment income of
$1,489 and $0 for Clearwater Small
Cap Fund) $ 26,825,533 17,998,390 84,774,665 65,999,105
=============================================================================================================================
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
CLEARWATER INVESTMENT TRUST
Notes to Financial Statements
(1) Organization
Clearwater Investment Trust (the Trust) was established on January 12,
1987 as a Massachusetts business trust and is registered under the
Investment Company Act of 1940 (as amended) as a diversified
open-end management investment company and presently includes two
series of funds: Clearwater Small Cap Fund and Clearwater Growth
Fund (the funds). The Trust's declaration of trust permits the
board of directors to create additional funds in the future. The
investment objective of the funds is long-term capital growth. The
Clearwater Small Cap Fund primarily invests in equity and fixed
income securities of companies that have total equity market
capitalizations of $1 billion or lower. The Clearwater Growth Fund
invests in a broad list of securities that offer the potential for
growth.
(2) Summary of Significant Accounting Policies
The significant accounting policies followed by the funds are as
follows:
Use of Estimates
Thepreparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of increase and decrease in net assets from
operations during the period. Actual results could differ from
those estimates.
Investments in Securities
Investments in securities are valued at the last sales price on
the principal exchange or market where they are traded.
Securities which have not traded on the date of valuation or
securities for which sales prices are not generally reported
are valued at the mean between the last bid and asked prices.
Securities for which no market quotations are readily available
(including those the trading of which has been suspended) will
be valued at fair value as determined in good faith by the
board of trustees, although the actual computations may be made
by persons acting pursuant to the direction of the board.
Security transactions are accounted for on the date the securities
are purchased or sold. Realized gains and losses are calculated
on an identified cost basis. Dividend income is recognized on
the ex-dividend date and interest income, including
amortization of original issue discount and premium, is accrued
daily.
Federal Taxes
TheTrust's policy is to comply with the requirements of the
Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable
income to shareholders. Therefore, no income tax provision is
required. Each fund is treated as a separate entity for federal
income tax purposes. In addition, on a calendar year basis,
each fund intends to distribute substantially all of its net
investment income and realized gains, if any, to avoid the
payment of any federal excise taxes.
(Continued)
<PAGE>
2
CLEARWATER INVESTMENT TRUST
Netinvestment income and net realized gains (losses) for the
funds may differ for financial statement and tax purposes. The
character of distributions made during the year from net
investment income or net realized gains may differ from their
ultimate characterization for federal income tax purposes.
Also, due to the timing of dividend distributions, the fiscal
year in which amounts are distributed may differ from the year
that the income or realized gains (losses) were recorded by the
funds.
On the statements of assets and liabilities, due to permanent
book-to-tax differences, undistributed net investment income
has been increased by $2,342 for Clearwater Growth Fund,
resulting in a net reclassification adjustment to decrease
accumulated net realized gains by $2,342.
Distributions to Shareholders
Distributions to shareholders from net investment income and net
realized gains, if any, are declared annually and paid in cash
or reinvested in additional shares.
(3) Investment Security Transactions
Costof purchases and proceeds from sales of securities, other than
temporary investments in short-term securities, for the year ended
December 31, 1995, were as follows:
Sales
Purchases proceeds
-------------------------------------------------------------------
Clearwater Small Cap Fund $ 22,548,105 17,556,338
Clearwater Growth Fund 43,770,814 49,102,639
(4) Capital Share Transactions
Transactions in shares of each fund for the years ended December 31,
1995 and 1994, were as follows:
Clearwater Clearwater
Small Cap Fund Growth Fund
------------------- --------------------
1995 1994 1995 1994
-----------------------------------------------------------------
Sold 376,459 389,420 3,495 8,545
Issued for reinvested
distributions 143,619 298,474 172,735 737,890
Redeemed (1,503) (7,788) (38,758) (112,779)
-----------------------------------------------------------------
=================================================================
Increase 518,575 680,106 137,472 633,656
=================================================================
(Continued)
<PAGE>
3
CLEARWATER INVESTMENT TRUST
(5) Expenses and Related Party Transactions
The Trust has a contract for management services with Clearwater
Management Company, a management firm of which the Trust's
chairman is a shareholder. Under terms of the agreement,
Clearwater Small Cap Fund and Clearwater Growth Fund pay a monthly
fee equal to an annual rate of 1.35% and 1.10% of average net
assets, respectively. However, certain state securities laws do
not permit Clearwater Management Company to charge its management
fee with respect to investments in other investment companies held
by the funds, therefore, actual management fees may be less than
these contractual rates. Clearwater Management Company is
responsible for the payment or reimbursement of all of the Funds'
expenses, except brokerage, taxes, interest and extraordinary
expenses.
The management firm has entered into a sub-advisory contract with an
independent investment advisory firm for each fund to provide
daily investment management services. The sub-advisory fee for the
Clearwater Small Cap Fund, payable to Kennedy Capital Management,
is equal to an annual rate of 1.00% of the first $30 million in
net assets and then decreasing in reduced percentages to 0.80% of
net assets in excess of $50 million. The sub-advisory fee for the
Clearwater Growth Fund, payable to SIT Investment Associates,
Inc., is equal to an annual rate of .75% of the first $10 million
in net assets and then decreasing in reduced percentages to .35%
of net assets in excess of $80 million.
The Clearwater Small Cap Fund borrowed $20,000 from Clearwater
Management Company on December 29, 1995 in order to meet cash
distribution requirements. The fund subsequently paid back the
$20,000 on January 18, 1996.
(Continued)
<PAGE>
4
CLEARWATER INVESTMENT TRUST
(6) Financial Highlights
Per share data (rounded to the nearest cent) for a share of capital
stock outstanding throughout the period and selected information
for each period is as follows:
<TABLE>
Clearwater Small Cap Fund
<CAPTION>
-----------------------------------------------------------------------------------------------------
1995 1994** 1993 1992 1991
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year $ 9.89 12.26 11.50 11.30 9.37
-----------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income .04 .17 .17 .29 .37
Net gains or losses on
securities (both realized
and unrealized) 2.56 (.99) 1.60 .25 1.93
-----------------------------------------------------------------------------------------------------
Total from
investment
operations 2.60 (.82) 1.77 .54 2.30
-----------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net
investment income (.04) (.17) (.17) (.29) (.37)
Distributions from net
realized gains (.98) (1.38) (.84) (.05) .00
-----------------------------------------------------------------------------------------------------
Total distributions (1.02) (1.55) (1.01) (.34) (.37)
-----------------------------------------------------------------------------------------------------
Net asset value, end of year $ 11.47 9.89 12.26 11.50 11.30
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Total return* 26.3% (6.7%) 15.4% 4.9% 24.9%
-----------------------------------------------------------------------------------------------------
Net assets, end of year (000s
omitted) $ 26,826 17,998 13,972 13,128 12,537
Ratio of expenses to average
net assets 1.35% 1.40% 1.47% 1.49% 1.62%
Ratio of net investment income
to average net assets .36% 1.61% 1.38% 2.54% 3.64%
Portfolio turnover rate
(excluding short-term
securities) 77.46% 122.88% 58.49% 73.07% 67.42%
<FN>
*Total return figures are based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset
value.
**Effective May 1, 1994, a change was implemented in the fund's investment
policies whereby the fund must invest at least 65% of its total assets in
securities of companies that have total equity market capitalizations of $1
billion or lower. Prior to this change, the Fund was permitted to invest in
a broad list of equity and fixed income securities. Also, the fund's name
was changed from Clearwater Value Fund to Clearwater Small Cap Fund. Also
effective January 1, 1994, Kennedy Capital Management became the
sub-adviser for the Fund.
</FN>
</TABLE>
(Continued)
<PAGE>
5
<TABLE>
CLEARWATER INVESTMENT TRUST
Clearwater Growth Fund
Year ended December 31
-------------------------------------------------------------
<CAPTION>
1995 1994 1993 1992 1991
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year $ 13.62 14.49 15.98 15.42 10.91
------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income .01 .06 .09 .11 .14
Net gains or losses on
securities (both realized
and unrealized) 4.43 .11 .27 .56 4.51
------------------------------------------------------------------------------------------------------
Total from
investment
operations 4.44 .17 .36 .67 4.65
------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net
investment income (.01) (.06) (.09) (.11) (.14)
Distributions from realized
gains (1.04) (.98) (1.76) .00 .00
------------------------------------------------------------------------------------------------------
Total distributions (1.05) (1.04) (1.85) (.11) (.14)
------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 17.01 13.62 14.49 15.98 15.42
------------------------------------------------------------------------------------------------------
Total return* 32.6% 1.2% 2.2% 4.4% 42.8%
Net assets, end of period
(000s omitted) $ 84,775 65,999 61,037 67,554 65,818
Ratio of expenses to average
net assets 1.08% 1.07% 1.08% 1.10% 1.17%
Ratio of net investment income
to average net assets .06% .39% .55% .74% 1.05%
Portfolio turnover rate
(excluding short-term
securities) 58.64% 70.69% 52.76% 32.08% 29.27%
<FN>
*Total return figures are based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset
value.
</FN>
</TABLE>
<PAGE>
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER SMALL CAP FUND
Investments in Securities
December 31, 1995
<CAPTION>
Principal
amount or
number Market
Name of issuer of shares value (a)
- -----------------------------------------------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
<S> <C> <C>
Corporate Bonds (.1%):
Park Ohio Industries Inc.
7.25%, 6/15/2004 250,000 $ 252,500
AGCO Corp. 6.5%, 06/01/2008 1,000 3,908
- -----------------------------------------------------------------------------------------------------------------------
Total investment in bonds (cost $251,634) 256,408
- -----------------------------------------------------------------------------------------------------------------------
Common and Preferred stocks (99.0%):
Aerospace (0.9%):
Aeroflex Inc. (b) 26,400 112,200
Sifco Industries (b) 9,540 51,278
Sparton Corp. (b) 21,200 92,750
- -----------------------------------------------------------------------------------------------------------------------
256,228
- -----------------------------------------------------------------------------------------------------------------------
Agriculture (.1%):
China Industrial Group Inc. (b) 24,600 33,056
- -----------------------------------------------------------------------------------------------------------------------
Automotive (2.6%):
Arrow Automotive Industries (b) 12,000 75,000
Bailey Corp. (b) 12,600 61,425
Defiance Inc. (b) 7,000 42,000
Margate Industries Inc. 21,000 19,687
Masland Corp. 10,750 150,500
Safety Components International Inc. (b) 19,500 307,125
Starcraft Corp. 10,000 45,000
- -----------------------------------------------------------------------------------------------------------------------
700,737
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to investments in securities.
(Continued
<PAGE>
2
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER SMALL CAP FUND
Investments in Securities, Continued
<CAPTION>
Number Market
Name of issuer of shares value (a)
- -----------------------------------------------------------------------------------------------------------------------
Common and preferred stocks, continued:
<S> <C> <C>
Banks (5.7%):
Bankatlantic Bancorp. Inc. 18,125 $ 339,844
Fidelity Fed Savings 18,370 298,512
First Federal Bancshares of Eau Claire Inc. 11,350 173,087
Metropolitan Bancorp (b) 20,000 260,000
Poughkeepsie Savings Bank FSB 39,400 206,850
TF Financial Corp. 15,850 240,722
- -----------------------------------------------------------------------------------------------------------------------
1,519,015
- -----------------------------------------------------------------------------------------------------------------------
Business Services (1.0%):
Cerbco Inc. (b) 3,000 20,250
Ellett Brothers 12,100 96,800
Joule Inc. (b) 6,759 33,795
Medquist Inc. (b) 8,300 67,438
NSC Corp. 23,660 47,320
- -----------------------------------------------------------------------------------------------------------------------
265,603
- -----------------------------------------------------------------------------------------------------------------------
Chemicals (2.4%):
CPAC Inc. (b) 17,312 244,532
LSB Industries Inc. 28,500 124,688
Wedco Technology Inc. (b) 20,200 265,125
- -----------------------------------------------------------------------------------------------------------------------
634,345
- -----------------------------------------------------------------------------------------------------------------------
Computer Software (6.1%):
Citation Computer Systems (b) 36,500 205,313
Computer Outsourcing Services Inc. (b) 33,750 143,437
Find/SVP Inc. (b) 31,495 62,990
Henry (Jack) & Associates 14,000 346,500
Number Nine Visual Technology Corp. (b) 20,000 175,000
Prophet 21 Inc. (b) 70,000 319,375
SYMIX Systems (b) 31,500 315,000
Zycad Corp. (b) 8,000 67,000
- -----------------------------------------------------------------------------------------------------------------------
1,634,615
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
3
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER SMALL CAP FUND
Investments in Securities, Continued
<CAPTION>
Number Market
Name of issuer of shares value (a)
- -----------------------------------------------------------------------------------------------------------------------
Common and preferred stocks, continued
<S> <C> <C>
Construction Materials (3.0%):
American Biltrite Inc. 13,000 $ 282,750
Ameron Inc. 6,000 225,750
Apogee Enterprises Inc. (b) 16,000 272,000
Utilx Corp. (b) 16,600 35,275
- -----------------------------------------------------------------------------------------------------------------------
815,775
- -----------------------------------------------------------------------------------------------------------------------
Consumer Services (1.50%):
Childrens Discovery Center 60,000 307,500
Nobel Education Dynamics (b) 6,250 106,250
- -----------------------------------------------------------------------------------------------------------------------
413,750
- -----------------------------------------------------------------------------------------------------------------------
Defense (.8%):
Intelect Communications Systems 41,050 228,341
- -----------------------------------------------------------------------------------------------------------------------
Electrical Equipment (1.2%):
IEC Electronics Corp.(b) 13,000 113,750
Luminart Inc. (b) 40,000 55,200
TSX Corp. (b) 4,000 86,000
Zycon Corp. (b) 6,200 69,750
- -----------------------------------------------------------------------------------------------------------------------
324,700
- -----------------------------------------------------------------------------------------------------------------------
Electronics, Instrument (15.3%):
All American Semiconductor (b) 34,000 78,625
Aura Systems Inc. (b) 60,000 337,500
COHU Inc. 16,500 420,750
DBA Systems Inc. (b) 24,000 105,000
Data Measurement Corp. (b) 14,200 261,812
Datamarine International Inc. (b) 34,500 388,125
Herley Industries Inc. (b) 17,100 119,700
LaBarge Inc. (b) 18,300 64,050
Liuski International Inc. (b) 58,050 192,291
MTI Technology Corp. (b) 135,900 322,762
Micro Component Technology (b) 26,800 177,550
Numerex Corp. Class A (b) 29,400 191,100
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
4
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER SMALL CAP FUND
Investments in Securities, Continued
<CAPTION>
Number Market
Name of issuer of shares value (a)
- -----------------------------------------------------------------------------------------------------------------------
Common and preferred stocks, continued:
<S> <C> <C>
Supertex Inc. (b) 8,300 $ 86,113
II-VI Inc. (b) 2,000 21,500
Ultrak Inc. (b) 12,700 81,756
Wegener Corp. (b) 76,600 928,775
Whitehall Corp. (b) 10,000 335,000
- -----------------------------------------------------------------------------------------------------------------------
4,112,409
- -----------------------------------------------------------------------------------------------------------------------
Entertainment (0.1%):
Spec's Music Inc. (b) 20,000 35,000
- -----------------------------------------------------------------------------------------------------------------------
Financial (4.8%):
D & N Financial Corp. (b) 16,900 204,912
Hallmark Captial Corp. (b) 10,000 157,500
Marion Capital Holdings Inc. 8,650 173,000
Mid Continent Bancshares Inc. 6,000 111,000
Pacific Crest Capital, Inc. (b) 39,900 289,275
Riggs National Preferred Series B 10.75% 12,250 346,063
- -----------------------------------------------------------------------------------------------------------------------
1,281,750
- -----------------------------------------------------------------------------------------------------------------------
Food and Beverage (3.9%):
Brothers Gourmet Coffees Inc. (b) 10,100 36,613
Erly Industries 7,877 53,170
Farmers Brothers Company 2,150 293,475
Unimark Group Inc. (b) 55,500 672,937
- -----------------------------------------------------------------------------------------------------------------------
1,056,195
- -----------------------------------------------------------------------------------------------------------------------
Furniture (0.9%):
Rowe Furniture Corp. 49,400 216,125
Stanley Furniture Company Inc. (b) 3,670 29,360
- -----------------------------------------------------------------------------------------------------------------------
245,485
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
5
<TABLE>
CLEARWATER SMALL CAP FUND
Investments in Securities, Continued
<CAPTION>
Number Market
Name of issuer of shares value (a)
- -----------------------------------------------------------------------------------------------------------------------
Common and preferred stocks, continued:
<S> <C> <C>
Health Care (2.7%):
Grancare Inc. (b) 8,370 $ 121,365
Health Fitness Physical Therapy Inc. ((b) 60,400 135,900
Integrated Health Services (b) 4,326 108,150
Medical Innovations Inc. (b) 10,000 15,000
Moore Medical Corp. (b) 8,400 90,300
Sterling HealthCare Group (b) 23,450 249,156
- -----------------------------------------------------------------------------------------------------------------------
719,871
- -----------------------------------------------------------------------------------------------------------------------
Home Builders (0.2%):
MDC Holdings Inc. 7,200 51,300
- -----------------------------------------------------------------------------------------------------------------------
Housewares (.9%):
Libbey Inc. 10,450 235,125
- -----------------------------------------------------------------------------------------------------------------------
Insurance (7.9%):
Acordia Inc. 10,850 324,144
American Physician Service Group (b) 49,000 471,625
Amvestors Financial Corp. 11,000 129,250
Health Risk Management Inc. (b) 500 5,125
Intercargo Corp. 20,100 201,000
Lawyers Title Corp. 18,400 351,900
Liberty Financial Companies 9,400 284,350
Motor Club of America (b) 6,200 40,300
Pioneer Financial Services Inc. 17,022 314,907
- -----------------------------------------------------------------------------------------------------------------------
2,122,601
- -----------------------------------------------------------------------------------------------------------------------
Lodging and Restaurant (0.1%):
Main Street & Main Inc. (b) 7,500 21,094
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
6
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER SMALL CAP FUND
Investments in Securities, Continued
<CAPTION>
Number Market
Name of issuer of shares value (a)
- -----------------------------------------------------------------------------------------------------------------------
Common and preferred stocks, continued:
<S> <C> <C>
Machinery (4.1%):
AAON Inc. (b) 23,000 $ 132,250
Amistar Corp. (b) 17,618 162,967
Easco Inc. 27,000 232,875
Global Industrial Technologies Inc. (b) 1,800 33,975
Lincoln Electric 18,000 432,000
Speizman Industries Inc. (b) 12,500 35,937
Stevens International Series A (b) 14,000 61,250
- -----------------------------------------------------------------------------------------------------------------------
1,091,254
- -----------------------------------------------------------------------------------------------------------------------
Manufactured Housing (0.7%):
Champion Enterprises (b) 5,950 183,706
- -----------------------------------------------------------------------------------------------------------------------
Medical Technology (5.5%):
ADAC Laboratories 24,850 301,306
Aequitron Medical Inc. (b) 27,470 209,459
Alliance Imaging Inc. (b) 36,000 103,500
Biowhittaker Inc. (b) 14,800 112,850
GAMMA Biologicals Inc. 6,040 27,935
Health Management Inc. (b) 31,500 417,375
Laserscope (b) 47,738 92,492
Medical Graphics Corp. (b) 5,400 26,663
OEC Medical Systems Inc. (b) 19,232 187,512
- -----------------------------------------------------------------------------------------------------------------------
1,479,092
- -----------------------------------------------------------------------------------------------------------------------
Metal Fabrication (1.8%):
Cold Metal Products Inc. (b) 15,000 71,250
HMI Industries 9,000 108,000
Matthews International Corp. 16,000 312,000
- -----------------------------------------------------------------------------------------------------------------------
491,250
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
7
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER SMALL CAP FUND
Investments in Securities, Continued
<CAPTION>
Number Market
Name of issuer of shares value (a)
- -----------------------------------------------------------------------------------------------------------------------
Common and preferred stocks, continued:
<S> <C> <C>
Office Equipment, Computers (2.7%):
Genicom Corp. (b) 15,000 $ 76,875
Inotek Technologies Corp. (b) 23,000 15,813
Miltope Group Inc. (b) 22,200 62,437
Summagraphics Corp. (b) 5,950 12,272
3D Systems Corp. (b) 17,783 422,346
Tridex Corp. (b) 15,000 105,000
Xscribe Corp. (b) 30,000 22,500
- -----------------------------------------------------------------------------------------------------------------------
717,243
- -----------------------------------------------------------------------------------------------------------------------
Oil and Gas (3.2%):
Bolt Technology Corp. (b) 197,500 357,969
CE Franklin Ltd. (b) 13,180 19,770
ICO Inc. 26,200 127,725
Industrial Holdings Inc. (b) 10,000 41,250
KCS Energy Inc. 10,600 159,000
Lufkin Industries Inc. 5,400 122,175
WRT Energy Corp. 9,550 7,610
WRT Energy Corp. Preferred 9.0% 7,600 34,200
- -----------------------------------------------------------------------------------------------------------------------
869,699
- -----------------------------------------------------------------------------------------------------------------------
Packaging (0.7%):
Mobile Mini Inc. (b) 50,000 187,500
- -----------------------------------------------------------------------------------------------------------------------
Paper (.7%):
Mercer International Inc. (b) 9,000 184,500
- -----------------------------------------------------------------------------------------------------------------------
Pharmaceuticals (1.1%):
ICN Pharmaceuticals Inc. 14,902 286,863
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
8
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER SMALL CAP FUND
Investments in Securities, Continued
<CAPTION>
Number
of shares
or principal Market
Name of issuer amount value (a)
- -----------------------------------------------------------------------------------------------------------------------
Common and preferred stocks, continued:
<S> <C> <C>
Printing and Publishing (1.5%):
Central Newspapers 6,850 $ 214,919
Graphic Industries 15,250 186,812
- -----------------------------------------------------------------------------------------------------------------------
401,731
- -----------------------------------------------------------------------------------------------------------------------
Recreational Vehicles (0.8%):
Polaris Industries Inc. 7,350 215,906
- -----------------------------------------------------------------------------------------------------------------------
Retail Trade (8.2%):
Celebrity, Inc. (b) 4,200 24,150
Dairy Mart Convenience Stores, Inc. CL A (b) 24,000 135,000
Drug Emporium, Inc. (b) 43,300 178,612
Genovese Drug Stores Class A 36,542 411,097
Hills Stores Preferred 10/5/08 Series A (b) 4,605 43,172
National Media Corp. (b) 32,070 673,470
Strober Organization Inc. (b) 39,400 140,363
Trak Auto Corp. (b) 15,850 241,713
Universal Self Care Inc. (b) 25,200 47,250
Valuevision International Inc. Class A (b) 60,000 333,750
- -----------------------------------------------------------------------------------------------------------------------
2,228,577
- -----------------------------------------------------------------------------------------------------------------------
Telecommunications (3.3%):
Davox Corp. (b) 13,850 164,469
Interdigital Communications Corp. (b) 28,400 209,450
Mastec Inc. (b) 24,300 321,975
NII Norstat International Inc. (b) 40,000 112,500
Teledata Communications Ltd. (b) 12,000 75,000
- -----------------------------------------------------------------------------------------------------------------------
883,394
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
9
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER SMALL CAP FUND
Investments in Securities, Continued
<CAPTION>
Number
of shares
or principal Market
Name of issuer amount value (a)
- -----------------------------------------------------------------------------------------------------------------------
Common and preferred stocks, continued:
<S> <C> <C>
Textile and Apparel (.7%):
Culp Inc. 17,500 $ 194,688
Orbit International Corp. (b) 8,000 7,000
- -----------------------------------------------------------------------------------------------------------------------
201,688
- -----------------------------------------------------------------------------------------------------------------------
Transportation (1.9%):
Greenwich Air Services Inc. 22,818 524,814
Pacific International Services Inc. 15,000 300
- -----------------------------------------------------------------------------------------------------------------------
525,114
- -----------------------------------------------------------------------------------------------------------------------
Total investment in common stocks
(cost: $24,566,059) 26,654,512
- -----------------------------------------------------------------------------------------------------------------------
Short-term securities (-%):
Federated Master Trust 5.29% 1,279 1,279
- -----------------------------------------------------------------------------------------------------------------------
Total investments in short-term
securities (cost: $1,279) 1,279
- -----------------------------------------------------------------------------------------------------------------------
Total investments in securities
(cost: $24,818,972) (c) $ 26,912,199
=======================================================================================================================
<FN>
Notes to Investments in Securities
(a) Securities are valued in accordance with procedures described in note 2 to
the financial statements.
(b) Currently non-income producing.
(c) At December 31, 1995, the cost for federal income tax purposes was
$24,818,972. The aggregate gross unrealized appreciation and depreciation
of investments in securities based on this cost was as follows:
</FN>
</TABLE>
<TABLE>
<S> <C>
Gross unrealized appreciation $ 4,956,564
Gross unrealized depreciation (2,863,337)
- -----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation $ 2,093,227
=======================================================================================================================
</TABLE>
<PAGE>
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER GROWTH FUND
Investments in Securities
December 31, 1995
<CAPTION>
Number Market
Name of issuer of shares value (a)
- ----------------------------------------------------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
Common stocks (96.5%):
<S> <C> <C>
Domestic (91.5%):
Aerospace (2.1%):
Boeing Company 22,500 $ 1,763,438
- ----------------------------------------------------------------------------------------------------------------------------
Agriculture (.2%):
Pioneer Hi-Bred International Inc. 2,500 139,063
- ----------------------------------------------------------------------------------------------------------------------------
Automotive (2.2%):
Harley Davidson Inc. 66,500 1,911,875
- ----------------------------------------------------------------------------------------------------------------------------
Banks (3.1%):
Citicorp 38,500 2,589,125
- ----------------------------------------------------------------------------------------------------------------------------
Chemicals (1.7%):
Monsanto Company 11,500 1,408,750
- ----------------------------------------------------------------------------------------------------------------------------
Computer software (12.6%):
Computer Associates International Inc. 16,500 938,438
First Data Corp. 51,425 3,439,047
HBO & Company 19,000 1,455,875
Microsoft Corp. (b) 20,000 1,755,000
Oracle Systems Corp. (b) 47,500 2,012,813
Parametric Technology Corp. (b) 16,000 1,064,000
- ----------------------------------------------------------------------------------------------------------------------------
10,665,173
- ----------------------------------------------------------------------------------------------------------------------------
Construction materials (1.1%):
Owens Corning Fiberglas (b) 20,000 897,500
- ----------------------------------------------------------------------------------------------------------------------------
Consumer non-Durable (4.2%):
Gillette Company 35,000 1,824,371
Procter & Gamble Company 21,000 1,743,000
- ----------------------------------------------------------------------------------------------------------------------------
3,567,371
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
2
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER GROWTH FUND
Investments in Securities, Continued
<CAPTION>
Number Market
Name of issuer of shares value (a)
- ----------------------------------------------------------------------------------------------------------------------------
Common stocks, continued:
<S> <C> <C>
Electronics, instrument (9.2%):
Applied Materials Inc. (b) 17,000 $ 669,375
Intel Corp. 43,000 2,440,250
LSI Logic Corp. (b) 42,000 1,375,500
Motorola Inc. 14,500 826,500
Sensormatic Electronics Corp. 50,000 868,750
Sundstrand Corp. 9,500 668,563
Xilinx Inc. (b) 31,000 945,500
- ----------------------------------------------------------------------------------------------------------------------------
7,794,438
- ----------------------------------------------------------------------------------------------------------------------------
Entertainment (0.9%):
Viacom Class B (b) 16,500 781,688
- ----------------------------------------------------------------------------------------------------------------------------
Financial (6.1%):
American Express Company 20,500 848,187
CUC International Inc. (b) 52,500 1,791,563
Federal Home Loan Mortgage Corp. 21,000 1,753,500
Mercury Finance Company 60,000 795,000
- ----------------------------------------------------------------------------------------------------------------------------
5,188,250
- ----------------------------------------------------------------------------------------------------------------------------
Food and beverage (4.3%):
Coca Cola Company 18,000 1,336,500
Phillip Morris Companies, Inc. 24,500 2,217,250
Whitman Corp. 4,000 93,000
- ----------------------------------------------------------------------------------------------------------------------------
3,646,750
- ----------------------------------------------------------------------------------------------------------------------------
Health care (4.3%):
Healthsouth Rehabilitation (b) 38,000 1,106,750
Mid Atlantic Medical Services (b) 29,000 703,250
United Healthcare Corp. 28,000 1,834,000
- ----------------------------------------------------------------------------------------------------------------------------
3,644,000
- ----------------------------------------------------------------------------------------------------------------------------
Insurance (6.1%):
American International Group 24,000 2,220,000
MGIC Investment Corp. 30,000 1,627,500
Mercury General Corp. 28,500 1,360,875
- ----------------------------------------------------------------------------------------------------------------------------
5,208,375
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
3
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER GROWTH FUND
Investments in Securities, Continued
<CAPTION>
Number Market
Name of issuer of shares value (a)
- ----------------------------------------------------------------------------------------------------------------------------
Common stocks, continued:
<S> <C> <C>
Lodging and restaurants (1.1%):
Marriott International, Inc. 24,000 $ 918,000
- ----------------------------------------------------------------------------------------------------------------------------
Medical Technology (3.9%):
Medtronic Inc. 41,500 2,318,813
Stryker Corp. 18,500 971,250
- ----------------------------------------------------------------------------------------------------------------------------
3,290,063
- ----------------------------------------------------------------------------------------------------------------------------
Office equipment, computers (6.1%):
Alco Standard Corp. (b) 5,000 228,125
Cisco Systems Inc. (b) 44,000 3,283,500
3Com Corporation (b) 22,000 1,025,750
Silicon Graphics Inc. (b) 23,500 646,250
- ----------------------------------------------------------------------------------------------------------------------------
5,183,625
- ----------------------------------------------------------------------------------------------------------------------------
Oil and gas (3.4%):
British Petroleum Company 3,000 306,375
Enron Corp. 30,000 1,143,750
McDermott International Inc. 28,000 616,000
Union Texas Petroleum Holdings Inc. 41,000 794,375
- ----------------------------------------------------------------------------------------------------------------------------
2,860,500
- ----------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals (8.4%):
Amgen Inc. (b) 40,000 2,375,000
Johnson & Johnson 22,000 1,883,750
Pfizer Inc. 45,000 2,835,000
- ----------------------------------------------------------------------------------------------------------------------------
7,093,750
- ----------------------------------------------------------------------------------------------------------------------------
Retail Trade (3.1%):
Home Depot Inc. 42,500 2,034,688
Office Depot Inc. (b) 31,000 612,250
- ----------------------------------------------------------------------------------------------------------------------------
2,646,938
- ----------------------------------------------------------------------------------------------------------------------------
Services (3.4%):
Ceridian Corp. (b) 39,500 1,629,375
Paychex Inc. (b) 25,500 1,271,813
- ----------------------------------------------------------------------------------------------------------------------------
2,901,188
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
4
<TABLE>
CLEARWATER INVESTMENT TRUST
CLEARWATER GROWTH FUND
Investments in Securities, Continued
<CAPTION>
Number
of shares
or principal Market
Name of issuer amount value (a)
- ----------------------------------------------------------------------------------------------------------------------------
Common stocks, continued:
<S> <C> <C>
Telecommunications (4.0%):
Airtouch Communications Inc. 55,000 $ 1,553,750
DSC Communications Corp. (b) 35,000 1,290,625
MCI Communications (b) 10,000 261,250
Tellabs Inc. (b) 9,000 333,000
- ----------------------------------------------------------------------------------------------------------------------------
3,438,625
- ----------------------------------------------------------------------------------------------------------------------------
Foreign (5.0%):
SAP Ads 11,000 554,400
Exel Ltd. 23,000 1,403,000
Loewen Group Inc. 32,500 822,656
Nokia Corp. ADR A 8,000 311,000
Schlumberger Ltd. 17,000 1,177,250
- ----------------------------------------------------------------------------------------------------------------------------
4,268,306
- ----------------------------------------------------------------------------------------------------------------------------
Total investment in common stocks
(cost: $51,286,900) $ 81,806,791
- ----------------------------------------------------------------------------------------------------------------------------
Short-term securities (3.5%):
Norwest Advantage Cash Investment Fund 5.38% 2,958,356 $ 2,958,356
- ----------------------------------------------------------------------------------------------------------------------------
Total investment in short-term
securities (cost: $2,958,356) 2,958,356
- ----------------------------------------------------------------------------------------------------------------------------
Total investments in securities
(cost: $54,245,256) (c) $ 84,765,147
============================================================================================================================
</TABLE>
See accompanying notes to investments in securities.
(Continued)
<PAGE>
5
CLEARWATER INVESTMENT TRUST
CLEARWATER GROWTH FUND
Investments in Securities, Continued
Notes to Investments in Securities
(a) Securities are valued in accordance with procedures described in note 2 to
the financial statements.
(b) Currently non-income producing.
(c) At December 31, 1995, the cost for federal income tax purposes was
$54,245,256. The aggregate gross unrealized appreciation and depreciation
of investments in securities based on this cost was as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 31,597,797
Gross unrealized depreciation (1,077,906)
- ----------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation $ 30,519,891
============================================================================================================================
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> CLEARWATER GROWTH FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 54,245,256
<INVESTMENTS-AT-VALUE> 84,765,147
<RECEIVABLES> 1,159,979
<ASSETS-OTHER> 26,484
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 85,951,610
<PAYABLE-FOR-SECURITIES> 952,214
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 224,731
<TOTAL-LIABILITIES> 1,176,945
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 54,229,404
<SHARES-COMMON-STOCK> 4,983,002
<SHARES-COMMON-PRIOR> 4,845,530
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 2,342
<ACCUMULATED-NET-GAINS> 27,712
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 30,519,981
<NET-ASSETS> 84,774,665
<DIVIDEND-INCOME> 714,455
<INTEREST-INCOME> 160,944
<OTHER-INCOME> 0
<EXPENSES-NET> 831,562
<NET-INVESTMENT-INCOME> 43,837
<REALIZED-GAINS-CURRENT> 5,000,130
<APPREC-INCREASE-CURRENT> 16,347,374
<NET-CHANGE-FROM-OPS> 21,399,341
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 43,837
<DISTRIBUTIONS-OF-GAINS> 4,980,550
<DISTRIBUTIONS-OTHER> 2,342
<NUMBER-OF-SHARES-SOLD> 3,495
<NUMBER-OF-SHARES-REDEEMED> 38,758
<SHARES-REINVESTED> 172,375
<NET-CHANGE-IN-ASSETS> 18,775,560
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 132
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 831,562
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 831,562
<AVERAGE-NET-ASSETS> 76,887,318
<PER-SHARE-NAV-BEGIN> 13.62
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> 4.43
<PER-SHARE-DIVIDEND> .01
<PER-SHARE-DISTRIBUTIONS> 1.04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.01
<EXPENSE-RATIO> .011
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> CLEARWATER SMALL CAP FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 24,818,972
<INVESTMENTS-AT-VALUE> 26,912,199
<RECEIVABLES> 18,889
<ASSETS-OTHER> 4484
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 26,935,572
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 110,039
<TOTAL-LIABILITIES> 110,039
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 24,710,221
<SHARES-COMMON-STOCK> 2,338,666
<SHARES-COMMON-PRIOR> 1,820,091
<ACCUMULATED-NII-CURRENT> 1,489
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 20,569
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,093,227
<NET-ASSETS> 26,825,533
<DIVIDEND-INCOME> 300,085
<INTEREST-INCOME> 95,035
<OTHER-INCOME> 0
<EXPENSES-NET> 312,702
<NET-INVESTMENT-INCOME> 82,418
<REALIZED-GAINS-CURRENT> 2,170,720
<APPREC-INCREASE-CURRENT> 3,282,565
<NET-CHANGE-FROM-OPS> 5,535,703
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 80,929
<DISTRIBUTIONS-OF-GAINS> 2,150,083
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 376,460
<NUMBER-OF-SHARES-REDEEMED> 1,503
<SHARES-REINVESTED> 143,619
<NET-CHANGE-IN-ASSETS> 8,827,143
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 41
<GROSS-ADVISORY-FEES> 312,702
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 312,702
<AVERAGE-NET-ASSETS> 22,953,503
<PER-SHARE-NAV-BEGIN> 9.89
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> 2.56
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> .98
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.47
<EXPENSE-RATIO> .014
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
