[OBJECT OMITTED]
--------------------------------------------------------------------------------
CLEARWATER INVESTMENT TRUST
--------------------------------------------------------------------------------
August 18, 2000
TO: Our Unit Holders
On June 30, 2000 the net asset value of the Clearwater Growth Fund was $33.56
per unit. The net asset value of the Clearwater Small Cap Fund was $17.83 per
unit. On a total return basis for 2000, the Clearwater Growth Fund increased by
5.1% and the Clearwater Small Cap Fund increased by 17.8%. For comparative
purposes, the Russell 1000 increased by 0.8% and the Russell 2000 increased by
3.0%. For the second quarter, the Clearwater Growth Fund decreased 1.7% and the
Clearwater Small Cap Fund decreased 5.0%. The Russell 1000 decreased 3.4% and
the Russell 2000 decreased 3.8%.
On June 30, 2000 the net asset value of the Clearwater Tax Exempt Bond Fund was
$10.09 per unit. On a total return basis for 2000 the fund increased 3.6% with a
second quarter return of 1.2%. For comparative purposes, the Lehman 5-Year
Municipal Bond Index increased 2.8% in the first half of the year with a 1.6 %
increase in the second quarter.
Parametric Portfolio Associates, the sub-advisor for the Clearwater Growth Fund,
made the following comments on the first half and the outlook for balance of
2000:
The first half of the year 2000 was characterized by wild gyrations in
the U.S. stock market. Investors' strong interest in a narrow range of
securities, including high-flying growth names, continued for the
first two months of 2000. Late in the first quarter, earnings concerns
and a series of interest hikes sent technology stocks spiraling and
dragged the rest of the market down as well. This sharp drop in the
technology-heavy NASDAQ index, which began in the middle of March,
continued in the first half of the second quarter, with the Fed's
third tightening of the year in May. However, as the technology stocks
roared back to life in June, it was the economically sensitive value
stocks that bore the brunt of another Fed tightening. The Russell 1000
index ended the 2nd quarter down 3.4% and posted a total return of
0.8% for the first six months of 2000. Interestingly, it was mid and
small cap securities that fared better across this environment.
The Clearwater Growth Fund, as in 1999, did especially well during the
first half of 2000 due to its residual bias toward mid cap growth
securities. After suffering in relative terms vs. the Russell 1000
index during late 1997 and all of 1998, the Clearwater Growth Fund has
recovered all of its negative relative return and is now at par with
the Russell 1000 index for the entire span of Parametric's management.
The predicted annual tracking error of the portfolio vs. the Russell
1000 benchmark is slightly over 3%. We have seen some fluctuation in
industry models' tracking error estimates as the extreme volatility in
late 1999 and early 2000 made statistical estimation difficult. In
addition, the Russell 1000 index experienced its annual reconstitution
of June 30 - the new index is slightly larger
<PAGE>
August, 2000
Page 2
Parametric Portfolio Associates (cont.)
cap with an increased emphasis on technology. In pre and post-tax
terms the portfolio is performing well within expectations.
Parametric anticipates continued choppy markets as investors and
analysts digest the effect of the slowing economy and interest rate
changes on an overall market that is at least fully valued by
historical measures. The continued shake-out and consolidation in
internet and high-tech sectors will be an important dynamic as
profitability and asset growth will again become the important metrics
in company valuation.
Kennedy Capital Management, the sub-advisor for the Clearwater Small Cap Fund,
made the following comments:
After a strong January and February, small stocks, as measured by the
Russell 2000 index, posted three consecutive monthly declines and
volatility has been high. In fact, from the market top on March 10 to
the low on April 17, the Russell index lost 28% of its value. This
precipitous drop resulted from investors' sudden disenchantment with
Internet companies. In April and May, concern about the viability of
the dot.com companies broadened to worries that many stocks,
particularly "new-economy" technology issues, were over-valued.
Inflationary concerns and the likelihood of rising interest rates
further fueled this fear. But, like a drunk who can stay sober for
only so long, investors couldn't help but pick up "new-economy"
bargains. In June, the Russell 2000 index gained 9%. More
significantly, the Russell Growth index leaped 13% while the Value
benchmark added only 3% in June.
However, it does appear that the tide is turning toward real value -
in fits and starts to be sure - but turning nonetheless. Year-to-date
the Russell 2000 Value stocks are up 5.8% while the companion Growth
index gained 1.2%. This relative advantage to value has not
materialized in either the Russell mid-cap or the large-cap indices
year-to-date. And, as noted, there have been distortions in the
Russell 2000 benchmarks. So the evidence is mixed and we are going to
have to wait and see if the market is really embracing value or just
toying with us.
One issue facing Kennedy Capital is how do we play our
"under-followed" card. In early turns to value, investors and analysts
often place their first bets on the better known companies that have
fallen into disfavor. Cummins Engine is just one example. It dropped
from a high of $80 in 1997 to about $36 today. It is trading under
book value and is expected to earn about $5 this year, returning 13%
on equity. Or, consider the retailer Dillards which reached $44 in
1998 and traded as high as $38 last year. It now trades at $15 and is
expected to earn over $2 this year and next with earnings accelerating
in 2002. Dillards is priced at half of book value and less than 4X
free cash flow. Both of these are well known companies with thorough,
if unenthusiastic, followings. These newly designated "small-cap"
stocks
August, 2000
Page 3
Kennedy Capital Management (cont.)
could turn pretty quickly and bring the Russell indices with them. If
KCM avoids these types of stocks completely, we could miss the early
turn. We will be evaluating these better known value companies and how
they might fit in a KCM portfolio as we set our strategy and wait for
a decisive shift toward value.
SIT Investment Associates
SIT Investment, the sub-advisor for the Clearwater Tax-Exempt Bond Fund, made
the following comments on the first half and the outlook for balance of 2000:
The Clearwater Tax-Exempt Bond Fund commenced operations in mid
January when municipal bond yields were essentially at their highest
levels of the year. The Bond Buyer 40 Bond Index of high grade
municipal bond yields was at a 6.31% yield level on January 18, 2000
and declined by 40 basis points to 5.91% on June 30, which was near
the lowest level of the year. Yields declined rather evenly across the
entire municipal yield curve during the first half of the year, with
the highest total returns being earned by the longer end of the
municipal market. Within the municipal market, returns from various
sectors such as general obligation bonds and revenue bonds as well as
returns within revenue sectors such as housing, health care, and
electric revenue, varied only slightly. The fund benefited from the
fact that its duration of approximately 7 years was at the longer end
of its targeted intermediate-term duration range.
Municipal bond yields declined during the first half of the year. This
decline was due primarily to a 23% reduction in supply of municipal
bonds and increased buying demand from individual investors who backed
off from their enthusiasm for equity investments that dominated the
investment markets in 1999. While small additional increases in
short-term rates may occur, they will probably not exceed the 1/4% to
1/2% level over the remainder of this year. With slowing economic
growth and the prospect of a soft landing for the economy, interest
rates are expected to be relatively stable during the second half of
this year following the dramatic swings of the past 18 months.
Clearwater Investment Trust Clearwater Management Company
--------------------------- -----------------------------
P. W. Pascoe, President and CEO P. W. Pascoe, Chairman and Treasurer
L. R. Jones W. T. Weyerhaeuser, V. P. and Secretary
L. H. King S. B. Carr, Jr.
C. W. Rasmussen W. J. Driscoll
L. Rasmussen E. D. Hlavka
F. T. Weyerhaeuser C. W. Morley
R. J. Phares
F. W. Piasecki
D. C. Titcomb
G. H. Weyerhaeuser, Jr.
J:\CMC\TLC\MAILINGS\2000\2000_SA.DOC
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER INVESTMENT TRUST
<S> <C> <C> <C>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2000 GROWTH SMALL CAP TAX-EXEMPT
FUND FUND BOND FUND
ASSETS
Investments in securities, at market value (note 2)
(identified cost: $79,548,446 Growth Fund; $63,426,298 Small Cap Fund;
$67,199,567 Tax-Exempt Bond Fund) $176,886,774 $76,103,404 $67,807,510
Cash 37,088 21,908 (93,255)
Receivable for investment securities sold 457,982 871,833 246,146
Accrued dividend and interest receivable 106,781 6,848 1,092,414
------------ ----------- -----------
TOTAL ASSETS 177,488,625 77,003,993 69,052,815
LIABILITIES
Payables for investment securities purchased 35,789 1,337,328 0
Dividend distribution payable 0 0 162,667
Accrued management fee 194,877 241,044 101,814
------------ ----------- -----------
TOTAL LIABILITIES 230,666 1,578,372 264,481
NET ASSETS $177,257,959 $75,425,621 $68,788,334
----------
============ =========== ===========
CAPITAL
Capital stock and additional paid-in capital
(authorized unlimited number of shares at no par value for each Fund:
outstanding 5,281,365; 4,231,111 and 6,818,751 shares, respectively (note 2)) $60,084,756 $52,156,397 $68,188,409
Accumulated net income(loss) 429,761 (131,855) 0
Accumulated net realized gain(loss) 19,405,114 10,723,973 (8,018)
Unrealized appreciation of investments 97,338,328 12,677,106 607,943
------------ ----------- -----------
NET ASSETS $177,257,959 $75,425,621 $68,788,334
----------
============ =========== ===========
Net asset value per share of outstanding capital stock $ 33.56 $ 17.83 $ 10.09
See accompanying notes to financial statements. 1
<PAGE>
CLEARWATER INVESTMENT TRUST
STATEMENTS OF OPERATIONS
For Period Ended June 30, 2000 GROWTH SMALL CAP TAX-EXEMPT
FUND FUND BOND FUND
INVESTMENT INCOME
Income:
Dividends (net of foreign taxes withheld of $4092, $0 and $0, respectively) $795,045 $227,591 $82,860
Interest 19,149 109,939 1,778,776
------------ ----------- -----------
TOTAL INCOME 814,194 337,530 1,861,636
Expenses: (note 5)
Income tax expense (net of tax refunds) (85) 0 0
Investment advisory fee 384,518 469,385 177,327
------------ ----------- -----------
TOTAL EXPENSES 384,433 469,385 177,327
NET INVESTMENT INCOME (LOSS) 429,761 (131,855) 1,684,309
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain(loss) on security transactions 19,405,114 10,723,973 (8,018)
Unrealized appreciation(depreciation) during the period (11,228,659) 138,800 607,943
------------ ----------- -----------
NET GAIN ON INVESTMENTS 8,176,455 10,862,773 599,925
------------ ----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $8,606,216 $10,730,918 $2,284,234
============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For Period Ended June 30, 2000 GROWTH FUND SMALL CAP FUND TAX-EXEMPT BOND FUND
<S> <C> <C> <C> <C> <C> <C>
06/30/2000 12/31/1999 06/30/2000 12/31/1999 06/30/2000 12/31/1999
---------- ---------- ---------- ---------- ---------- ----------
OPERATIONS
Net investment income(loss) $429,761 $562,430 ($131,855) ($162,616) $1,684,309 $0
Net realized gain(loss) on investments 19,405,114 669,133 10,723,973 5,519,176 (8,018) 0
Unrealized appreciation(depreciation) during the (11,228,659) 31,836,313 138,800 7,121,988 607,943 0
period ----------- ------------ ------------ ----------- ----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATION 8,606,216 33,067,876 10,730,918 12,478,548 2,284,234 0
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income 0 (750,478) 0 0 (1,684,309) 0
Net realized gain on investments 0 (463,810) 0 (5,305,682) 0 0
Return of capital 0 (212,677) 0 0 0 0
----------- ------------ ------------ ----------- ----------- -----------
TOTAL DISTRIBUTIONS TO SHAR0HOLDERS 0 (1,426,965) 0 (5,305,682) (1,684,309) 0
CAPITAL SHARE TRANSACTIONS (note 4)
Proceeds from shares sold 1,016,890 4,587,100 7,420,400 7,224,850 70,964,880 10
Reinvestment of distributions from net
investment income, gain,and return of capital 0 873,806 0 6,345,779 859,485 0
Payments for shares redeemed (2,277,731) (1,961,797) (1,921,480) (764,346) (3,635,966) 0
----------- ------------ ------------ ----------- ----------- -----------
INCREASE(DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS (1,260,841) 3,499,109 5,498,920 12,806,283 68,188,399 10
----------- ------------ ------------ ----------- ----------- -----------
TOTAL INCREASE IN NET ASSET 7,345,375 35,140,020 16,229,838 19,979,149 68,788,324 10
NET ASSETS
At the beginning of the period 169,912,584 134,772,564 59,195,783 39,216,634 10 0
----------- ------------ ------------ ----------- ----------- -----------
At the end of the period $177,257,959 $169,912,584 $75,425,621 $59,195,783 $68,788,334 $10
============ ============ ============ =========== =========== ===========
Undistributed Net Income $442,842 $13,081 $0 $0 $0 $0
=========== ============ ============ =========== =========== ===========
</TABLE>
See accompanying notes to financial statements. 2
<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 three series of
funds: Clearwater Growth Fund, Clearwater Small Cap Fund and
Clearwater Tax-Exempt Bond 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 Clearwater Growth and
Small Cap Funds is long-term capital growth. The investment objective
of the Clearwater Tax-Exempt Bond Fund is high current income that is
exempt from federal income tax, consistent with preservation of
capital.
The Clearwater Growth Fund is passively managed to track but not
replicate the Russell 1000 Index, an unmanaged, capitalization
weighted index of the largest 1000 public companies in the United
States. The fund is managed so that its holdings match the holdings of
the Index as closely as possible without requiring the fund to realize
taxable gains. This means that the fund will not buy and sell
securities to match changes in the composition of securities in the
Index. Instead, the fund's portfolio is adjusted periodically to
reflect the holdings and weightings of the Index, but only after
consideration of the fund's policy to minimize realization of taxable
gains.
The Clearwater Small Cap Fund invests primarily in equity securities
of issuers with market capitalizations, at the time of investment, no
greater than the range of capitalizations of the companies included in
the Russell 2000 Index, an unmanaged, capitalization weighted index of
the largest 3000 public companies in the United States less the
largest 1000 tracked by the Russell 1000 Index.
The Clearwater Tax-Exempt Bond Fund invests at least 80% of its assets
in municipal securities, which are debt obligations issued by or for
the U.S. states, territories and possessions and the District of
Columbia. The interest on these securities is generally exempt from
regular federal income tax and may also be exempt from federal
alternative minimum tax. However, the fund may invest up to 20% of its
assets in these securities that generate interest income subject to
federal alternative minimum tax.
1
<PAGE>
CLEARWATER INVESTMENT TRUST
(2) Summary of Significant Accounting Policies
The significant accounting policies followed by the funds are as follows:
Investments in Securities
Investments in equity securities are valued at the last sales price on
the principal exchange or market where they are traded. Equity
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. Debt
securities maturing more than 60 days from the valuation date are
valued at the market price supplied by an independent pricing vendor
based on current interest rates; those securities with maturities of
less than 60 days when acquired, or which subsequently are within 60
days of maturity, are valued at amortized cost, which approximates
market value. 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
The Trust'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.
Net investment income and net realized gains (losses) for the funds my
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.
2
<PAGE>
CLEARWATER INVESTMENT TRUST
Federal Taxes (continued)
On the statements of assets and liabilities, due to permanent
book-to-tax differences, the following adjustments have been made:
Clearwater Clearwater
Growth Fund Small Cap Fund
---------------------------------------------------------------------
Undistributed net income $ 5,200 $ 162,616
Accumulated net realized gains 0 (162,591)
Additional paid-in capital (5,200) (25)
Distributions to Shareholders
Distributions to shareholders from net investment income, if any, are
declared annually for the Clearwater Growth and Small Cap Funds and
monthly for the Clearwater Tax-Exempt Bond Fund. Distributions to
shareholders from net realized gains, if any, are declared annually
for all Funds. Distributions are paid in cash or reinvested in
additional shares.
Use of Estimates
The preparation 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.
(3) Investment Security Transactions
Cost of purchases and proceeds from sales of securities, other than
temporary investments in short-term securities, for the period ended
June 30, 2000, were as follows:
Purchases Sales proceeds
--------------------------------------------------------------------
Clearwater Growth Fund $56,527,441 $57,596,198
Clearwater Small Cap Fund 49,292,892 46,264,431
Clearwater Tax-Exempt Bond Fund 72,039,300 8,045,249
3
<PAGE>
CLEARWATER INVESTMENT TRUST
(4) Capital Share Transactions
<TABLE>
<CAPTION>
Transactions in shares of each fund for the period ended June 30, 2000
and the year ended December 31, 1999, were as follows:
Clearwater Clearwater
Growth Fund Small Cap Fund
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
06/30/2000 12/31/1999 06/30/2000 2/31/1999
----------------------------------------------------------------------------------------------------------
Sold 30,943 163,135 428,722 512,476
Issued for reinvested
distributions 0 29,145 0 454,134
Redeemed (69,270) (72,041) (109,756) (51,680)
----------------------------------------------------------------------------------------------------------
Increase (38,327) 120,239 318,966 914,930
----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Clearwater
Tax-Exempt Bond Fund
--------------------------------------
<S> <C> <C>
06/30/2000 12/31/1999
------------------------------------------------------------------------------
Sold 7,095,827 1
Issued for reinvested
distributions 85,619 0
Redeemed (362,696) 0
------------------------------------------------------------------------------
Increase 6,818,750 1
------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
CLEARWATER INVESTMENT TRUST
(5) Expenses and Related Party Transactions
The Trust has a contract for investment advisory services with
Clearwater Management Company, a management firm of which the Trust's
chairman and treasurer is a shareholder. Under terms of an agreement,
Clearwater Growth Fund, Clearwater Small Cap Fund and Clearwater
Tax-Exempt Bond Fund pay a fee equal to an annual rate of .45%, 1.35%
and .60% of average net assets, respectively. Clearwater Management
Company is responsible for the payment or reimbursement of all 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 Growth Fund, payable to Parametric Portfolio Associates,
Inc., is equal to an annual rate of 0.15% of net assets. The
sub-advisory fee for the Clearwater Small Cap Fund, payable to Kennedy
Capital Management, is equal to an annual rate of 0.85% of the first
$50 million in net assets and then decreasing to 0.80% of net assets
in excess of $50 million. The sub-advisory fee for the Clearwater
Tax-Exempt Bond Fund, payable to SIT Investment Associates Inc., is
equal to an annual rate of .40% on the first $20 million in net assets
and then decreasing in reduced percentages to .20% of net assets in
excess of $75 million.
(6) Restricted Securities
At June 30, 2000, investments in securities for the Clearwater Growth
Fund includes a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. The Fund
currently limits investments in restricted securities to 15% of net
assets at the time of purchase. The aggregate value of such security
at June 30, 2000 was $959,872 representing .54% of net assets for the
Clearwater Growth Fund.
5
<PAGE>
CLEARWATER INVESTMENT TRUST
(7) 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>
<CAPTION>
Clearwater Growth Fund
June 30, Year ended December 31,
---------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
2000 1999 1998 1997(b) 1996 1995
--------------------------------------------------------------------------------------------------------
Net asset value, beginning of year 31.94 25.92 21.17 17.88 17.01 13.62
--------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income(loss) 0.08 0.11 0.09 (0.01) (0.01) 0.01
Net realized and unrealized gains 1.54 6.18 4.71 5.08 3.68 4.43
--------------------------------------------------------------------------------------------------------
Total from investment
operations 1.62 6.29 4.80 5.07 3.67 4.44
--------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income 0.00 (0.14) (0.05) 0.00 0.00 (0.01)
Distributions from net realized gains 0.00 (0.09) 0.00 (1.78) (2.80) (1.04)
Return of capital 0.00 (0.04) 0.00 0.00 0.00 0.00
--------------------------------------------------------------------------------------------------------
Total distributions 0.00 (0.27) (0.05) (1.78) (2.80) (1.05)
--------------------------------------------------------------------------------------------------------
Net asset value, end of year 33.56 31.94 25.92 21.17 17.88 17.01
--------------------------------------------------------------------------------------------------------
Total return(a) 5.1% 24.3% 22.7% 28.4% 21.6% 32.6%
Net assets, end of year (000s omitted) 177,258 169,913 134,773 106,859 93,922 84,775
Ratio of expenses to average net assets 0.23% 0.45% 0.45% 0.98% 1.08% 1.08%
Ratio of net investment income (loss) to
average net assets 0.25% 0.39% 0.39% (0.06%) (0.07%) 0.06%
Portfolio turnover rate (excluding short-
term securities) 32.91% 12.19% 3.65% 38.16% 75.90% 58.64%
<FN>
(a) 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.
(b) Effective November 1, 1997, Parametric Portfolio Associates, Inc. became the subadvisor for the fund.
</FN>
</TABLE>
6
<PAGE>
CLEARWATER INVESTMENT TRUST
6
<TABLE>
<CAPTION>
Clearwater Small Cap Fund
June Year ended December 31,
---------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
2000 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------------
Net asset value, beginning of year 15.13 13.08 15.24 12.74 11.47 9.89
--------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income(loss) (0.03) (0.05) (0.04) (0.02) 0.00 0.04
Net realized and unrealized gains(losses) 2.73 3.57 (1.04) 5.14 1.71 2.56
--------------------------------------------------------------------------------------------------------
Total from investment
operations 2.70 3.52 (1.08) 5.12 1.71 2.60
--------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 0.00 0.00 (0.04)
Excess distributions from net invest income 0.00 0.00 0.00 0.00 (0.01) 0.00
Distributions from net realized gains 0.00 (1.47) (1.08) (2.62) (0.42) (0.98)
Return of capital 0.00 0.00 0.00 0.00 (0.01) 0.00
--------------------------------------------------------------------------------------------------------
Total distributions 0.00 (1.47) (1.08) (2.62) (0.44) (1.02)
--------------------------------------------------------------------------------------------------------
Net asset value, end of year 17.83 15.13 13.08 15.24 12.74 11.47
--------------------------------------------------------------------------------------------------------
Total return(a) 17.8% 27.3% (7.1%) 40.2% 15.0% 26.3%
Net assets, end of year (000s omitted) 75,426 59,196 39,217 40,838 32,774 26,826
Ratio of expenses to average net assets 0.68% 1.34% 1.36% 1.35% 1.37% 1.35%
Ratio of net investment income (loss) to
average net assets (0.19%) (0.35%) (0.26%) (0.17%) 0.00% 0.36%
Portfolio turnover rate (excluding short-
term securities) 70.36% 112.63% 88.27% 92.22% 89.25% 77.46%
<FN>
(a) 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>
7
<PAGE>
CLEARWATER INVESTMENT TRUST
7
Clearwater Tax-Exempt Bond Fund
June
2000(a)
-------------------------------------------------------------------------
Net asset value, beginning of period 10.00
-------------------------------------------------------------------------
Income from investment
operations:
Net investment income(loss) 0.25
Net realized and unrealized gains(losses) 0.09
-------------------------------------------------------------------------
Total from investment
operations 0.34
-------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.25)
Excess distributions from net invest income 0.00
Distributions from net realized gains 0.00
Return of capital 0.00
-------------------------------------------------------------------------
Total distributions (0.25)
-------------------------------------------------------------------------
Net asset value, end of year 10.09
-------------------------------------------------------------------------
Total return(b) 3.6%
Net assets, end of year (000s omitted) 68,788
Ratio of expenses to average net assets 0.32%
Ratio of net investment income (loss) to
average net assets 3.03%
Portfolio turnover rate (excluding short-
term securities) 15.52%
(a) The period began 1-14-00.
(b) 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.
8
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
COMMON STOCKS
CONSUMER DISCRETIONARY
1,250 ABERCROMBIE AND FITCH CO (b) 12,875.00 15,234.37
100 AMERICAN EAGLE OUTFITTERS INC (b) 1,674.75 1,400.00
850 AMERICAN GREETINGS CORP 15,007.26 16,150.00
100 AMFM INC (b) 6,687.25 6,900.00
12,824 AT & T - LIBERTY MEDIA GROUP CL A (b) 292,097.01 310,982.00
100 AUTOLIV 2,805.85 2,406.25
5,200 AUTONATION INC DEL (b) 42,074.76 36,725.00
1,250 BELO A H CORP 18,687.50 21,640.62
850 BEST BUY CO INC (b) 71,079.13 53,762.50
1,200 BLACK + DECKER CORPORATION 41,922.00 47,175.00
100 CABLEVISION SYS CORP (b) 6,543.50 6,787.50
3,300 CENTEX CORP 74,691.79 77,550.00
650 CIRCUIT CITY STORES INC 40,870.25 21,571.87
100 CLAIRE S STORES INC 1,918.50 1,925.00
1,550 CLAYTON HOMES INC 13,849.25 12,400.00
200 CLEAR CHANNEL COMMUNICATIONS (b) 11,524.50 15,000.00
3,100 COMCAST CORP (b) 142,350.04 125,550.00
100 CONSOLIDATED STORES CORP (b) 1,231.00 1,200.00
5,750 COOPER TIRE + RUBR CO 67,904.63 63,968.75
1,800 COSTCO WHSL CORP NEW (b) 39,156.25 59,400.00
2,300 DANA CORP 71,006.75 48,731.25
100 DILLARDS INC 1,487.25 1,225.00
23,650 DISNEY WALT CO 816,663.53 917,915.62
400 EBAY INC (b) 30,362.50 21,725.00
1,600 ECHOSTAR COMMUNICATIONS CORP N (b) 98,500.00 52,975.00
200 ETOYS INC (b) 1,662.50 1,268.75
8,000 FEDERAL MOGUL CORP 105,980.00 76,500.00
16,700 FEDERATED DEPT STORES INC DEL (b) 439,377.00 563,625.00
13,150 FORD MTR CO DEL 680,164.04 565,450.00
100 FOX ENTMT GROUP INC (b) 2,799.75 3,037.50
900 GANNETT INC 48,672.72 53,831.25
2,362 GAP INC 66,915.59 73,812.50
7,050 GENERAL MTRS CORP 474,542.55 409,340.62
4,300 GOODYEAR TIRE AND RUBBER 126,014.08 86,000.00
79,000 HARLEY DAVIDSON INC 462,841.25 3,041,500.00
101 HILTON HOTELS CORP 884.91 946.87
5,350 HOLLINGER INTERNATIONAL INC 62,343.02 72,893.75
77,250 HOME DEPOT INC 50,381.91 3,857,671.87
100 INFINITY BROADCASTING CORP NEW (b) 3,356.00 3,643.75
400 INTERPUBLIC GROUP COS INC 12,024.50 17,200.00
450 K MART CORP (b) 3,795.75 3,065.62
42,150 KOHLS CORP (b) 342,647.84 2,344,593.75
2,800 LEAR CORP (b) 75,605.60 56,000.00
100 LEGGETT + PLATT INC 2,112.25 1,650.00
100 LIBERTY DIGITAL INC (b) 3,156.00 3,000.00
1,900 LOWES COS INC 94,939.00 78,018.75
100 MANDALAY RESORT GROUP (b) 1,956.00 2,000.00
40,000 MARRIOTT INTL INC NEW 338,804.02 1,442,500.00
1,200 MAYTAG CORP 37,515.72 44,250.00
5,400 MCDONALDS CORP 132,805.67 177,862.50
400 MCGRAW HILL COS INC 16,537.00 21,600.00
</TABLE>
1 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
100 NEWELL RUBBERMAID INC 2,456.00 2,575.00
700 OFFICE DEPOT INC (b) 7,766.99 4,375.00
200 OMNICOM GROUP 10,562.00 17,812.50
3,150 PENNEY J C INC 52,595.33 58,078.12
100 PREMIER PKS INC (b) 2,468.50 2,275.00
400 PRICELINE COM INC (b) 25,587.52 15,193.75
100 PRIMEDIA INC (b) 2,181.00 2,275.00
100 RADIOSHACK CORP 5,881.00 4,737.50
100 ROSS STORES INC 2,081.00 1,706.25
100 SAKS INC (b) 1,193.50 1,050.00
100 SEARS ROEBUCK + CO 3,949.75 3,262.50
100 SHAW INDS INC 1,574.75 1,250.00
650 STAPLES INC (b) 12,675.00 9,993.75
100 STARBUCKS CORP (b) 3,287.50 3,818.75
1,700 TARGET CORP 60,597.48 98,600.00
100 TICKETMASTER ONLINE CITYSEARCH (b) 2,081.25 1,593.75
10,500 TIME WARNER INC 765,336.56 798,000.00
1,750 TJX COS INC NEW 33,304.95 32,812.50
300 TOYS R US INC (b) 4,730.49 4,368.75
2,025 TRIBUNE CO NEW 75,235.35 70,875.00
350 TRICON GLOBAL RESTAURANTS INC (b) 10,230.38 9,887.50
1,400 TRW INC 77,852.74 60,725.00
400 UNITEDGLOBALCOM (b) 23,136.52 18,700.00
100 VENATOR GROUP INC (b) 1,181.00 1,025.00
7,536.75 VIACOM INC (b) 182,636.55 513,912.14
1,721.77 VISTEON CORP 28,538.68 20,876.46
26,350 WAL MART STORES INC 1,024,520.04 1,518,418.75
100 WARNACO GROUP INC 1,062.25 775.00
--------------- ---------------
7,935,509.00 18,220,536.18 10.28%
CONSUMER STAPLES
40 AGRIBRANDS INTL INC (b) 1,196.85 1,677.50
1,350 ALBERTSONS INC 38,293.56 44,887.50
1,800 ANHEUSER BUSCH COS INC 76,807.95 134,437.50
100 ARCHER DANIELS MIDLAND CO 1,037.25 981.25
150 AVON PRODS INC 4,930.88 6,675.00
36,000 COCA COLA CO 1,081,705.00 2,067,750.00
2,000 COLGATE PALMOLIVE CO 63,903.80 119,750.00
100 CONAGRA INC 1,793.50 1,906.25
1,200 CVS CORP 37,761.00 48,000.00
5,600 FORT JAMES CORP 139,048.56 129,500.00
400 GENERAL MLS INC 12,499.50 15,300.00
33,000 GILLETTE CO 550,137.35 1,152,937.50
1,050 IBP INC 15,072.33 16,209.37
2,750 KIMBERLY CLARK CORP 142,946.29 157,781.25
7,450 KROGER CO (b) 125,942.54 164,365.62
10,400 NABISCO GROUP HLDG CORP 103,718.20 269,750.00
7,250 PEPSICO INC 267,554.00 322,171.87
32,850 PHILIP MORRIS COS INC 547,506.76 872,578.12
15,000 PROCTER + GAMBLE CO 564,654.60 858,750.00
100 REYNOLDS R J TOB HLDGS INC 1,699.75 2,793.75
1,600 SAFEWAY INC (b) 47,173.04 72,200.00
3,950 SYSCO CORP 121,024.50 166,393.75
100 TYSON FOODS INC (DEL) 1,049.75 875.00
50,000 WALGREEN CO 632,788.70 1,609,375.00
1,800 WRIGLEY WM JR CO 125,320.50 144,337.50
--------------- ---------------
4,705,566.16 8,381,383.73 4.73%
</TABLE>
See notes to investments in securities 2 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
ENERGY
3,050 AMERADA HESS CORP 176,480.02 188,337.50
1,500 ANADARKO PETE CORP 50,527.50 73,968.75
1,450 APACHE CORP 61,627.61 85,278.12
32,226 BP AMOCO PLC 973,193.21 1,822,783.12
5,450 BURLINGTON RES INC 178,458.36 208,462.50
2,150 CHEVRON CORP 180,150.95 182,346.87
2,100 COASTAL CORP 67,063.50 127,837.50
5,280 CONOCO INC 104,244.85 129,690.00
100 DEVON ENERGY CORPORATION NEW 4,231.00 5,618.75
4,250 EOG RESOURCES INC 80,823.95 142,375.00
40,160 EXXON MOBIL CORP 3,228,776.60 3,152,560.00
600 MURPHY OIL CORP 32,054.76 35,662.50
2,900 NOBLE AFFILIATES INC 74,136.48 108,025.00
16,450 OCCIDENTAL PETE CORP 308,653.00 346,478.12
100 OCEAN ENERGY INC TEX (b) 1,243.50 1,418.75
5,650 PHILLIPS PETE CO 241,079.85 286,384.37
2,450 SANTA FE SNYDER CORP (b) 21,506.35 27,868.75
34,570 SCHLUMBERGER LTD 872,552.00 2,579,786.25
4,850 SUNOCO INC 109,368.96 142,771.87
2,000 TOSCO CORP 57,463.80 56,625.00
9,692 TRANSOCEAN SEDCO FOREX INC 182,407.13 517,916.25
1,150 ULTRAMAR DIAMOND SHAMROCK 24,284.66 28,534.37
600 UNION PACIFIC RES GROUP INC (b) 11,961.00 13,200.00
3,350 UNOCAL CORP 91,904.24 110,968.75
--------------- ---------------
7,134,193.28 10,374,898.09 5.85%
FINANCIALS
286 AEGON 10,483.69 10,188.75
300 AFLAC INC 10,336.74 13,781.25
6,900 ALLSTATE CORP 150,176.43 153,525.00
1,000 AMB PPTY CORP 20,197.50 22,812.50
8,550 AMERICAN EXPRESS CO 302,770.98 445,668.75
800 AMERICAN GEN CORP 41,298.00 48,800.00
26,060 AMERICAN INTL GROUP INC 494,492.61 3,062,050.00
950 AMERITRADE HLDG CORP (b) 14,606.25 11,043.75
7,484 AMSOUTH BANCORPORATION 107,205.00 117,873.00
950 AON CORP 25,856.97 29,509.37
110 ASSOCIATED BANC CORP 2,643.75 2,399.37
10,100 ASSOCIATES FIRST CAP CORP 193,931.11 225,356.25
3,300 ASTORIA FINL CORP 87,762.51 84,975.00
24,000 AXA FINL INC 461,539.95 816,000.00
2,600 BANK NEW YORK INC 62,790.52 120,900.00
16,550 BANK ONE CORP 510,752.86 439,609.37
300 CAPITAL ONE FINL CORP 13,724.25 13,387.50
100 CATELLUS DEV CORP (b) 1,356.00 1,500.00
400 CENTURA BKS INC 16,080.24 13,575.00
6,550 CHARTER ONE FINL INC 126,049.44 150,650.00
19,500 CHASE MANHATTAN CORP NEW 654,888.75 898,218.75
4,450 CIT GROUP INC 69,719.93 72,312.50
37,617 CITIGROUP INC 542,003.72 2,266,424.25
5,150 COMMERCIAL FED CORP 78,155.88 80,146.87
1,550 COUNTRYWIDE CR INDS INC 40,480.57 46,984.37
1,550 DIME BANCORP INC NEW 21,589.95 24,412.50
100 DONALDSON LUFKIN + JENRETTE (b) 1,087.25 712.50
2,900 E TRADE GROUP INC (b) 58,693.68 47,850.00
21,500 FEDERAL HOME LN MTG CORP 65,945.84 870,750.00
13,000 FEDERAL NATL MTG ASSN 741,048.50 678,437.50
100 FELCOR LODGING TR INC 2,031.00 1,850.00
600 FIFTH THIRD BANCORP 26,025.00 37,950.00
4,550 FINOVA GROUP INC 59,001.22 59,150.00
</TABLE>
See notes to investments in securities 3 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
2,700 FIRST SEC CORP DEL 38,643.75 36,618.75
1,850 FIRST TENN NATL CORP 34,167.28 30,640.62
9,800 FIRSTAR CORP WIS 223,238.12 206,412.50
9,700 FLEETBOSTON FINL CORP 305,140.64 329,800.00
18,000 FRANKLIN RES INC 332,901.55 546,750.00
6,200 GOLDEN ST BANCORP INC 97,206.64 111,600.00
100 HARTFORD FINANCIAL SVCS GRP 5,506.00 5,593.75
3,700 HELLER FINL INC 66,390.58 75,850.00
100 HIBERNIA CORP 1,081.00 1,087.50
11,650 HOST MARRIOTT CORP NEW 103,567.34 109,218.75
4,350 HOUSEHOLD INTL INC 166,173.67 180,796.87
100 HRPT PPTYS TR 806.00 612.50
2,750 HUNTINGTON BANCSHARES INC 50,006.28 43,484.37
100 ISTAR FINL INC 1,837.25 2,093.75
12,100 KEYCORP NEW 225,332.25 213,262.50
700 KEYSTONE FINL INC 10,979.50 14,875.00
200 KNIGHT TRADING GROUP INC (b) 7,415.62 5,962.50
850 LEHMAN BROTHERS HLDGS INC 71,447.86 80,378.12
2,700 LINCOLN NATL CORP IN 82,662.12 97,537.50
1,050 LOEWS CORP 49,966.14 63,000.00
950 MARSH + MCLENNAN COS INC 48,954.50 99,215.62
100 MARSHALL + ILSLEY CORP 4,787.25 4,150.00
2,150 MBNA CORP 38,937.00 58,318.75
1,750 MEDITRUST (b) 3,605.00 6,562.50
1,800 MELLON FINL CORP 46,904.04 65,587.50
44,000 MERCURY GEN CORP NEW 622,320.30 1,039,500.00
1,300 MERRILL LYNCH + CO INC 138,565.44 149,500.00
24,000 MGIC INVT CORP WIS 576,720.00 1,092,000.00
2,400 MORGAN J P + CO INC 284,762.70 264,300.00
4,300 MORGAN STANLEY DEAN WITTER+CO 365,602.23 357,975.00
13,850 NATIONAL CITY CORP 239,683.94 236,315.62
100 NATIONAL COMM BANCORP 1,675.00 1,606.25
100 NATIONWIDE FINL SVCS INC 2,793.50 3,287.50
100 NORTH FORK BANCORPORATION INC 1,618.50 1,512.50
400 NORTHERN TRUST CORP 14,850.00 26,025.00
105 OLD KENT FINL CORP 3,087.25 2,808.75
5,800 PACIFIC CENTY FINL CORP 98,035.66 84,825.00
100 PEOPLES BK BRIDGEPORT CONN 2,075.00 1,837.50
100 POPULAR INC 2,024.75 1,906.25
39,000 PRICE T ROWE + ASSOC INC 544,918.25 1,657,500.00
100 PROVIDENT FINL GROUP INC 2,912.50 2,381.25
1,250 PROVIDIAN FINL CORP 95,606.52 112,500.00
8,500 RADIAN GROUP INC 245,161.25 439,875.00
100 ROSLYN BANCORP INC 1,700.00 1,660.93
100 SAFECO CORP 2,050.00 1,987.50
900 SCHWAB CHARLES CORP 35,707.86 30,262.50
100 SLM HLDG CORP 3,031.00 3,743.75
100 SOVEREIGN BANCORP INC 713.38 703.12
500 STATE STREET CORPORATION 28,217.50 53,031.25
2,400 SUMMIT BANCORP 62,644.08 59,100.00
55,000 TCF FINANCIAL CORP 965,087.50 1,412,812.50
1,850 UNION PLANTERS CORP 53,751.57 51,684.37
100 UNIONBANCAL CORP 2,956.00 1,856.25
100 UNITED RENTALS INC (b) 1,399.75 1,712.50
2,900 UNUMPROVIDENT CORP 41,036.45 58,181.25
10,350 US BANCORP DEL 216,030.38 199,237.50
11,000 WASHINGTON MUT INC 265,978.90 317,625.00
54,000 WELLS FARGO + CO NEW 1,214,909.50 2,092,500.00
12,500 XL CAPITAL LTD 159,375.00 676,562.50
100 ZIONS BANCORP 4,146.88 4,589.06
--------------- ---------------
13,333,532.01 23,701,119.05 13.37%
</TABLE>
See notes to investments in securities 4 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
HEALTHCARE
5,000 ABBOTT LABS 157,381.25 222,812.50
2,100 AETNA INC 112,200.90 134,793.75
6,650 AMERICAN HOME PRODUCTS CORP 270,785.48 390,687.50
52,000 AMGEN INC (b) 232,136.00 3,653,000.00
900 BAXTER INTL INC 40,763.56 63,281.25
18,600 BIOGEN INC (b) 270,530.49 1,199,700.00
9,850 BRISTOL MYERS SQUIBB CO 469,755.60 573,762.50
800 CIGNA CORP 45,024.00 74,800.00
180 EDWARDS LIFESCIENCES CORP (b) 1,871.69 3,442.50
17,950 ELAN PLC (b) 252,083.32 869,453.12
1,400 GUIDANT CORP (b) 44,560.75 69,300.00
850 HCA HEALTHCARE CO 19,619.79 25,818.75
5,400 HEALTHSOUTH CORP (b) 33,061.50 38,812.50
100 HUMANA INC (b) 793.50 487.50
16,500 JOHNSON + JOHNSON 364,435.12 1,680,937.50
19,000 LILLY ELI + CO 794,112.40 1,897,625.00
46,000 MEDTRONIC INC 171,646.13 2,291,375.00
9,200 MERCK + CO INC 482,722.90 704,950.00
213,062 PFIZER INC 1,449,266.72 10,226,976.00
24,523 PHARMACIA CORP 385,185.40 1,267,532.56
4,800 SCHERING PLOUGH CORP 140,844.00 242,400.00
17,750 SERVICE CORP INTL 54,315.00 56,578.12
12,000 SMITHKLINE BEECHAM P L C 345,855.00 782,250.00
100 STEWART ENTERPRISES INC 502.88 353.12
35,000 STRYKER CORP 270,380.65 1,531,250.00
--------------- ---------------
6,409,834.03 28,002,379.17 15.80%
INDUSTRIALS
2,750 ALLIED WASTE INDUSTRIES INC (b) 16,321.25 27,500.00
100 AMERICAN PWR CONVERSION CORP (b) 3,500.00 4,081.25
100 AMERICAN STD COS INC DEL (b) 4,312.25 4,100.00
4,500 AMR CORP DEL (b) 158,338.80 118,968.75
8,950 ARMSTRONG HLDGS INC 179,306.09 137,046.87
2,000 AUTOMATIC DATA PROCESSING INC 52,653.80 107,125.00
19,000 BOEING CO 449,445.00 794,437.50
2,100 BORG WARNER INC 77,932.26 73,762.50
2,300 BURLINGTON NORTHN SANTA FE 53,681.77 52,756.25
3,100 CATERPILLAR INC 123,123.63 105,012.50
37,000 CENDANT CORP (b) 284,605.76 518,000.00
150 COMDISCO INC 4,902.75 3,346.87
100 CONCORD EFS INC (b) 2,181.00 2,600.00
500 CONTINENTAL AIRLS INC (b) 20,917.50 23,500.00
100 COOPER INDS INC 3,457.56 3,256.25
13,175 CRANE CO 222,160.04 320,317.18
5,100 CSX CORP 107,399.88 108,056.25
100 DEERE + CO 4,181.00 3,700.00
1,978 DELPHI AUTOMOTIVE SYS CORP 34,340.69 28,804.62
1,800 DELTA AIR LINES INC DE 99,292.33 91,012.50
1,300 DONNELLEY R R + SONS CO 29,202.94 29,331.25
800 DOVER CORP 27,686.52 32,450.00
750 EMERSON ELEC CO 42,260.63 45,281.25
18,400 FEDEX CORP (b) 368,548.50 699,200.00
37,100 FISERV INC (b) 503,371.76 1,604,575.00
1,050 FLUOR CORP 33,531.75 33,206.25
118,800 GENERAL ELEC CO 1,968,783.32 6,296,400.00
100 GENUINE PARTS CO 2,356.00 2,000.00
2,550 GOODRICH B F CO 71,012.37 86,859.37
6,600 HONEYWELL INTL INC 371,100.21 222,337.50
100 HUBBELL INC 2,549.75 2,550.00
900 ILLINOIS TOOL WKS INC 47,147.76 51,300.00
2,300 INGERSOLL RAND CO 96,969.29 92,575.00
5,700 JOHNS MANVILLE CORP 54,223.53 75,168.75
100 KANSAS CITY SOUTHN INDS INC 7,349.75 8,868.75
3,150 LAFARGE CORP 74,695.32 66,150.00
</TABLE>
See notes to investments in securities 5 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
100 LANIER WORLDWIDE INC (b) 199.75 100.00
4,700 LOCKHEED MARTIN CORP 123,213.32 116,618.75
100 MASCO CORP 2,284.16 1,806.25
100 MODIS PROFESSIONAL SVCS INC (b) 793.50 887.50
5,250 NORFOLK SOUTHN CORP 90,221.25 78,093.75
400 NORTHWEST AIRLS CORP (b) 7,781.24 12,175.00
100 PACCAR INC 4,706.25 3,968.75
100 PARKER HANNIFIN CORP 3,799.75 3,425.00
100 PENTAIR INC 4,043.50 3,550.00
7,900 RAYTHEON CO 189,874.13 152,075.00
900 REPUBLIC SVCS INC (b) 10,007.12 14,400.00
150 ROCKWELL INTL CORP NEW 5,924.63 4,725.00
433 SABRE HLDGS CORP (b) 20,013.18 12,340.50
100 SNAP ON INC 2,618.50 2,662.50
3,375 SODEXHO MARRIOTT SVCS INC 91,232.92 54,000.00
450 SOUTHWEST AIRLS CO 6,712.00 8,521.87
850 STEELCASE INC 8,991.64 14,450.00
250 TECUMSEH PRODS CO (b) 11,271.25 9,546.87
5,550 TENNECO AUTOMOTIVE INC 48,726.78 29,137.50
400 TEXTRON INC 23,724.00 21,725.00
800 THOMAS + BETTS CORP 20,623.04 15,300.00
34,000 TYCO INTL LTD NEW 329,885.00 1,610,750.00
1,300 U S INDS INC NEW 14,703.00 15,762.50
2,600 UAL CORP 153,831.10 151,287.50
1,050 UNION PAC CORP 43,934.84 39,046.87
2,550 UNITED TECHNOLOGIES CORP 111,618.03 150,131.25
2,750 US AIRWAYS GROUP INC (b) 63,996.35 107,250.00
2,650 USG CORP 101,015.35 80,493.75
8,650 WASTE MGMT INC DEL 135,675.25 164,350.00
2,700 YORK INTL CORP 57,118.23 68,175.00
--------------- ---------------
7,291,381.82 14,822,393.52 8.36%
INFORMATION TECHNOLOGY
100 ADAPTEC INC (b) 2,462.50 2,275.00
23,150 ADC TELECOMMUNICATIONS INC (b) 241,486.18 1,941,706.25
100 ADOBE SYS INC 12,312.50 13,000.00
1,600 ADVANCED MICRO DEVICES INC (b) 105,552.24 123,600.00
2,440 AGILENT TECHNOLOGIES INC (b) 139,150.56 179,950.00
1,150 ALTERA CORP (b) 119,981.23 117,228.12
31,550 AMERICA ONLINE INC DEL (b) 2,033,627.96 1,664,262.50
23,700 ANALOG DEVICES INC (b) 212,568.42 1,801,200.00
2,200 APPLE COMPUTER (b) 138,525.05 115,225.00
9,600 APPLIED MATERIALS INC (b) 737,240.76 870,000.00
750 APPLIED MICRO CIRCUITS CORP (b) 92,153.10 74,062.50
100 ARROW ELECTRS INC (b) 4,443.50 3,100.00
36,050 ASM LITHOGRAPHY HLDG N V (b) 220,782.21 1,590,706.25
2,150 ATMEL CORP (b) 106,378.05 79,281.25
1,600 BEA SYS INC (b) 80,337.50 79,100.00
100 BMC SOFTWARE INC (b) 4,725.00 3,648.43
750 CABLETRON SYSTEMS INC (b) 20,304.38 18,937.50
28,100 CERIDIAN CORP (b) 345,476.55 676,156.25
100 CHECKFREE CORP (b) 5,137.50 5,156.25
131,550 CISCO SYS INC (b) 205,622.96 8,361,646.87
1,000 CITRIX SYS INC (b) 50,687.50 18,937.50
600 CNET NETWORKS INC (b) 23,025.00 14,737.50
9,300 COMPAQ COMPUTER CORP 274,733.16 237,731.25
15,000 COMPUTER ASSOC INTL INC 514,842.00 767,812.50
10,000 COMPUTER SCIENCES CORP (b) 341,043.55 746,875.00
100 COMPUWARE CORP (b) 1,225.00 1,037.50
650 COMVERSE TECHNOLOGY INC (b) 56,918.75 60,450.00
900 CONEXANT SYS INC (b) 53,718.75 43,762.50
700 CORNING INC 149,216.97 188,912.50
300 CRITICAL PATH INC (b) 15,200.01 17,493.75
19,350 DELL COMPUTER CORP (b) 737,026.77 954,196.87
19,000 DENDRITE INTL INC (b) 74,950.83 632,937.50
24,100 E M C CORP MASS (b) 1,146,907.09 1,854,193.75
1,000 EARTHLINK INC (b) 18,812.50 15,437.50
</TABLE>
See notes to investments in securities 6 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
100 ELECTRONIC DATA SYS CORP NEW 3,917.93 4,125.00
22,000 FIRST DATA CORP 226,047.22 1,091,750.00
250 GENERAL MTRS CORP (b) 24,111.88 21,937.50
6,400 HEWLETT PACKARD CO 640,013.94 799,200.00
2,050 IKON OFFICE SOLUTIONS INC 12,038.63 7,943.75
1,000 INFOSPACE INC (b) 71,237.50 55,250.00
100 INGRAM MICRO INC (b) 1,931.00 1,743.75
550 INKTOMI CORP (b) 87,800.02 65,037.50
52,000 INTEL CORP 208,329.75 6,951,750.00
16,550 INTERNATIONAL BUSINESS MACHS 1,745,892.47 1,813,259.37
100 INTUIT (b) 3,568.75 4,137.50
100 I2 TECHNOLOGIES INC (b) 12,562.50 10,426.56
1,900 JDS UNIPHASE CORP (b) 178,294.48 227,762.50
1,200 KLA TENCOR CORP (b) 90,943.76 70,275.00
14,800 LEGATO SYSTEMS INC (b) 58,221.42 223,850.00
100 LEXMARK INTL GROUP INC (b) 11,974.75 6,725.00
1,700 LINEAR TECHNOLOGY CORP 95,762.53 108,693.75
41,180 LUCENT TECHNOLOGIES INC 2,089,093.31 2,439,915.00
1,150 LYCOS INC (b) 52,325.00 62,100.00
600 MACROMEDIA INC (b) 51,523.50 58,012.50
200 MARIMBA INC (b) 4,199.50 2,787.50
1,750 MAXIM INTEGRATED PRODS INC (b) 116,962.48 118,890.62
1,950 METROMEDIA FIBER NETWORK INC (b) 63,309.29 77,390.62
5,300 MICRON TECHNOLOGY INC (b) 356,716.44 466,731.25
52,000 MICROSOFT CORP (b) 83,073.61 4,160,000.00
131.67 MIPS TECHNOLOGIES INC (b) 2,915.72 5,595.97
840 MOMENTUM BUSINESS APPLICATIONS (b) - 6,195.00
7,500 MOTOROLA INC 340,089.50 217,968.75
450 NATIONAL SEMICONDUCTOR CORP (b) 29,642.63 25,537.50
250 NOVELL INC (b) 4,621.88 2,312.50
1,000 NOVELLUS SYS INC (b) 67,906.24 56,562.50
47,700 ORACLE CORP (b) 50,015.09 4,009,781.25
19,450 PARAMETRIC TECHNOLOGY CORP (b) 114,876.56 213,950.00
68,340 PAYCHEX INC 192,961.40 2,870,280.00
100 PEOPLESOFT INC (b) 1,304.13 1,675.00
100 PORTAL SOFTWARE INC (b) 4,881.00 6,387.50
150 PRODIGY COMMUNICATIONS CORP (b) 1,846.50 1,575.00
1,500 PSINET INC (b) 35,200.05 37,687.50
100 QLOGIC CORP (b) 10,299.75 6,606.25
3,950 QUALCOMM INC (b) 557,701.69 237,000.00
900 REAL NETWORKS INC (b) 43,281.27 45,506.25
100 RF MICRO DEVICES INC (b) 10,574.75 8,762.50
2,150 RHYTHMS NETCONNECTIONS INC (b) 49,656.19 27,009.37
100 SAFEGUARD SCIENTIFICS INC (b) 4,706.00 3,206.25
100 SANMINA CORP (b) 5,568.75 8,550.00
20,450 SAP AKTIENGESELLSCHAFT (c) 186,708.50 959,871.87
100 SCI SYS INC (b) 4,912.25 3,918.75
600 SCIENTIFIC ATLANTA INC 40,798.50 44,700.00
2,100 SEAGATE TECHNOLOGY (b) 108,932.25 115,500.00
500 SIEBEL SYS INC (b) 65,181.25 81,781.25
950 SILICON GRAPHICS INC (b) 4,444.41 3,562.50
4,150 SOLECTRON CORP (b) 165,242.78 173,781.25
100 STARMEDIA NETWORK INC (b) 2,362.50 1,887.50
18,900 SUN MICROSYSTEMS INC (b) 1,374,334.36 1,718,718.75
24,000 TELLABS INC (b) 240,342.00 1,642,500.00
1,450 TERADYNE INC (b) 163,230.80 106,575.00
20,300 TEXAS INSTRS INC 1,338,250.65 1,394,356.25
100 UNISYS CORP (b) 2,387.25 1,456.25
950 VERIO INC (b) 34,506.28 52,710.15
1,061.25 VERISIGN INC (b) 151,118.79 187,310.62
6,900 XEROX CORP 185,164.14 143,175.00
23,650 XILINX INC (b) 168,484.38 1,952,603.12
--------------- ---------------
20,340,877.88 58,501,009.81 33.00%
</TABLE>
See notes to investments in securities 7 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
MATERIALS
500 AIR PRODS + CHEMS INC 15,855.00 15,406.25
6,900 AK STL HLDG CORP 79,764.00 55,200.00
7,358 ALCOA INC 239,345.09 213,382.00
4,650 ALLEGHENY TECHNOLOGIES INC 87,366.53 83,700.00
400 BALL CORP 12,499.00 12,875.00
650 BEMIS INC 22,035.84 21,856.25
2,850 BOISE CASCADE CORP 96,930.50 73,743.75
2,300 BOWATER INC 112,850.42 101,487.50
800 CONSOLIDATED PAPERS INC 25,410.48 29,250.00
5,950 CROWN CORK + SEAL INC 95,557.00 89,250.00
3,000 DOW CHEM CO 92,122.54 90,562.50
8,550 DU PONT E I DE NEMOURS + CO 413,943.98 374,062.50
1,100 EASTMAN CHEM CO 46,947.23 52,525.00
1,200 ENGELHARD CORP 18,240.72 20,475.00
4,450 GEORGIA PAC CORP 170,679.31 116,812.50
1,150 GEORGIA PAC CORP 27,250.57 24,868.75
100 GREAT LAKES CHEMICAL CORP 2,756.00 3,150.00
100 HOMESTAKE MNG CO 656.00 687.50
1 HUTTIG BLDG PRODS INC (b) 3.74 4.12
100 IMC GLOBAL INC 1,637.25 1,300.00
9,131.68 INTERNATIONAL PAPER CO 339,269.38 272,238.21
7,850 LOUISIANA PAC CORP 111,839.74 85,368.75
5,650 LYONDELL CHEMICAL CO 72,488.94 94,637.50
100 MARTIN MARIETTA MATLS INC 4,718.50 4,043.75
3,750 MEAD CORP 126,346.88 94,687.50
100 MILLENNIUM CHEMICALS INC 2,006.00 1,700.00
5,050 NEWMONT MNG CORP 115,656.11 109,206.25
2,350 PACTIV CORP (b) 20,650.39 18,506.25
450 PRAXAIR INC 17,314.52 16,846.87
100 ROHM + HAAS CO 3,862.25 3,450.00
100 SHERWIN WILLIAMS CO 2,206.00 2,118.75
100 SMURFIT STONE CONTAINER CORP (b) 1,571.26 1,287.50
1,600 SOLUTIA INC 20,220.96 22,000.00
1,400 SONOCO PRODS CO 29,790.32 28,787.50
100 SOUTHDOWN INC 5,906.00 5,775.00
650 TEMPLE INLAND INC 32,063.98 27,300.00
4,650 USX U S STL GROUP 114,057.06 86,315.62
1,200 WESTVACO CORP 38,434.56 29,775.00
--------------- ---------------
2,620,254.05 2,284,643.07 1.29%
TELECOMMUNICATION SERVICES
350 ALLEGIANCE TELECOM INC (b) 27,237.49 22,400.00
2,500 ALLTEL CORP 150,312.50 154,843.75
31,613.50 AT + T CORP 1,295,558.93 999,776.93
3,400 AT HOME CORP (b) 64,546.96 70,550.00
17,500 BELL ATLANTIC CORP (b) 1,059,077.97 889,218.75
15,500 BELLSOUTH CORP 546,983.44 660,687.50
1,250 BROADWING INC (b) 36,481.25 32,421.87
1,900 CENTURYTEL INC 47,551.49 54,625.00
100 COMSAT CORP 2,568.50 2,468.75
2,500 GLOBAL TELESYSTEMS INC (b) 40,931.25 30,156.25
3,600 GTE CORP (b) 253,900.37 224,100.00
3,500 LEVEL 3 COMMUNICATIONS INC (b) 208,481.25 308,000.00
600 MCLEODUSA INC (b) 14,775.00 12,412.50
4,000 NEXTEL COMMUNICATIONS INC (b) 144,125.00 244,750.00
1,400 NEXTLINK COMMUNICATIONS INC (b) 49,492.03 53,112.50
480 NORTEL NETWORKS CORP 6,924.50 32,760.00
100 QWEST COMMUNICATIONS INTL INC (b) 4,399.75 4,968.75
41,777 SBC COMMUNICATIONS INC 1,783,889.98 1,806,855.25
9,200 SPRINT CORP 337,910.53 469,200.00
5,800 SPRINT CORP - PCS COM SER 1 (b) 157,404.04 345,100.00
6,554 U S WEST INC NEW (b) 349,809.27 562,005.50
58,300 VODAFONE AIRTOUCH PLC 616,927.80 2,415,806.25
100 VOICESTREAM WIRELESS CORP (b) 10,375.00 11,629.68
300 WINSTAR COMMUNICATIONS INC (b) 13,031.25 10,162.50
23,804 WORLDCOM INC (b) 1,018,766.68 1,092,008.50
--------------- ---------------
8,241,462.23 10,510,020.23 5.93%
</TABLE>
See notes to investments in securities 8 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
UTILITIES
1,050 ALLIANT CORP 30,025.48 27,300.00
100 CITIZENS COMMUNICATIONS CO (b) 1,612.25 1,725.00
5,300 CMS ENERGY CORP 112,274.14 117,262.50
100 CONECTIV INC 1,712.25 1,556.25
2,150 CP + L ENERGY INC 65,685.30 68,665.62
100 DUKE ENERGY CO 4,859.13 5,637.50
100 EDISON INTL 1,918.50 2,050.00
2,600 EL PASO ENERGY CORP DEL 64,018.50 132,437.50
9,000 ENRON CORP 262,275.50 580,500.00
9,400 ENTERGY CORP 184,382.88 255,562.50
800 KANSAS CITY PWR + LT CO 19,079.28 18,000.00
1,800 KEYSPAN CORP 41,676.84 55,350.00
6,900 NISOURCE INC 111,901.44 128,512.50
5,350 PG+E CORP 113,827.14 131,743.75
100 PPL CORP 2,049.75 2,193.75
6,650 PUGET SOUND ENERGY INC 135,280.29 141,728.12
3,350 RELIANT ENERGY INC 75,332.12 99,034.37
200 UNICOM CORP 7,024.50 7,737.50
1,350 UTILICORP UTD INC 23,659.16 26,831.25
100 WESTERN RES INC 1,556.00 1,550.00
1,300 WILLIAMS COS INC 46,865.78 54,193.75
--------------- ---------------
1,307,016.23 1,859,571.86 1.05%
CASH EQUIVALENTS
228,819.28 SSGA MONEY MARKET 228,819.28 228,819.28 0.13%
--------------- --------------- -------------
Grand Total (d) 79,548,445.97 176,886,773.99 99.79%
=============== =============== =============
<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 assets.
(c)Security purchased on May 23, 1995 at a cost of
$186,709 as part of a private placement that has not
been registered with the Securities and Exchange
Commission under the Securities Act of 1933. May be
sold only to dealers in that program or other
accredited investors.
(d)At June 30, 2000, the cost for Federal income tax
purposes was $79,548,446. The aggregate gross
unrealized appreciation and depreciation of
investments in securities based of this cost were as
follows:
Gross unrealized appreciation 100,727,877.30
Gross unrealized depreciation (3,389,549.28)
---------------
Net unrealized appreciation 97,338,328.02
==============
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER SMALL CAP FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
COMMON STOCKS
CONSUMER DISCRETIONARY
47,650 BUCKLE INC (b) 628,870.18 559,887.50
46,300 CALLAWAY GOLF CO 542,355.18 755,268.75
9,200 CHICOS FAS INC (b) 179,476.36 184,000.00
51,200 DEB SHOPS INC 611,923.07 640,000.00
14,222 ELDER BEERMAN STORES CORP NEW (b) 104,618.12 58,665.75
40,800 GENESCO INC (b) 546,910.58 655,350.00
11,850 GUESS INC (b) 169,961.17 165,900.00
58,450 MADDEN STEVEN LTD (b) 824,737.80 383,578.12
179,300 SPORT HALEY INC (b) 858,531.92 739,612.50
-------------- --------------
4,467,384.38 4,142,262.62 5.49%
CONSUMER STAPLES
64,300 UNITED NAT FOODS INC (b) 778,078.91 884,125.00
-------------- --------------
778,078.91 884,125.00 1.17%
ENERGY
8,700 ATWOOD OCEANICS INC (b) 368,323.20 386,062.50
82,100 BOLT TECHNOLOGY CORP (b) 185,482.38 338,662.50
66,100 CHIEFTAIN INTL INC (b) 1,137,057.63 1,260,031.25
104,050 FOREST OIL CORP (b) 1,034,016.95 1,658,296.87
54,250 FRIEDE GOLDMAN HALTER INC (b) 458,044.15 484,859.37
23,050 NATIONAL OILWELL INC (b) 550,900.00 757,768.75
21,700 OCEANEERING INTL INC (b) 314,029.49 412,300.00
24,600 ST MARY LD + EXPL CO 469,092.40 1,034,737.50
134,300 TRICO MARINE SVCS INC (b) 988,365.72 1,712,325.00
50,302 VARCO INTL INC DEL (b) 787,185.40 1,169,521.50
-------------- --------------
6,292,497.32 9,214,565.24 12.22%
FINANCIALS
96,300 GAINSCO INC 588,649.33 481,500.00
67,750 GILMAN CIOCIA INC (b) 612,575.38 313,343.75
126,850 LONDON PAC GROUP LTD 875,712.16 1,649,050.00
42,510 PACIFIC CREST CAP INC 372,876.62 557,943.75
127,250 PENN AMERICA GROUP INC 1,132,646.81 1,002,093.75
53,700 PENN TREATY AMERN CORP (b) 801,971.83 912,900.00
47,550 PHILADELPHIA CONS HLDG CORP (b) 703,333.05 799,434.37
37,500 REINSURANCE GROUP AMER INC 873,757.10 1,129,687.50
43,050 RIGHTCHOICE MANAGED CARE INC (b) 489,957.19 678,037.50
45,050 SELECTIVE INS GROUP INC 826,290.67 855,950.00
72,700 TUCKER ANTHONY SUTRO 1,072,348.93 1,308,600.00
-------------- --------------
8,350,119.07 9,688,540.62 12.85%
HEALTH CARE
88,650 DEL GLOBAL TECHNOLOGIES CORP (b) 761,188.71 861,567.18
27,150 ICN PHARMACEUTICALS INC 658,201.05 755,109.37
80,600 INTERPORE INTL (b) 785,043.77 780,812.50
33,500 MORRISON MGMT SPECIALISTS INC 588,114.80 944,281.25
149,000 ORTHOLOGIC CORP (b) 450,021.52 735,687.50
185,750 UROCOR INC (b) 977,081.17 882,312.50
-------------- --------------
</TABLE>
See notes to investments in securities 1 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER SMALL CAP FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
INDUSTRIALS
32,500 AEROFLEX INC (b) 286,392.92 1,614,843.75
174,600 ANANGEL AMERN SHIPHOLDINGS LTD (b) 832,829.35 840,262.50
10,800 APPLIED FILMS CORP (b) 245,070.92 395,550.00
76,500 ARMOR HLDGS INC (b) 816,072.90 994,500.00
48,600 CORNELL CORRECTIONS INC (b) 486,907.12 388,800.00
46,500 ENGINEERED SUPPORT SYS INC 604,904.36 639,375.00
66,500 FACTUAL DATA CORP (b) 538,679.38 615,125.00
45,400 HARRIS CORP DEL 1,450,425.67 1,486,850.00
62,600 HERLEY INDUSTRIES INC (b) 738,922.29 1,181,575.00
20,050 KEY TECHNOLOGY INC (b) 172,215.63 170,425.00
80,200 KNIGHTSBRIDGE TANKERS LTD (b) 1,369,570.28 1,604,000.00
139,850 MORRISON KNUDSEN CORP NEW (b) 1,064,498.38 1,013,912.50
58,500 NOBLE INTL LTD 654,002.26 453,375.00
32,800 PARLEX CORP (b) 553,716.70 1,381,700.00
68,400 SUPERIOR UNIFORM GROUP INC 550,620.00 594,225.00
50,600 TEEKAY SHIPPING CORP 783,684.18 1,663,475.00
-------------- --------------
11,148,512.34 15,037,993.75 19.94%
INFORMATION TECHNOLOGY
16,700 AMKOR TECHNOLOGY INC (b) 160,107.80 589,718.75
25,050 APPLIED SCIENCE + TECH INC (b) 639,478.11 648,168.75
61,650 ASM INTERNATIONAL N V (b) 1,426,976.53 1,633,725.00
71,850 AVT CORP (b) 732,568.58 529,893.75
71,600 BROOKTROUT INC (b) 1,433,247.56 1,561,775.00
7,450 CARRIER ACCESS CORP (b) 296,931.38 393,918.75
64,350 CATALYST INTL INC (b) 670,347.66 530,887.50
102,950 CERPROBE CORP (b) 926,572.69 1,441,300.00
24,600 DSP GROUP INC (b) 458,237.52 1,377,600.00
49,900 GALILEO TECHNOLOGY LTD (b) 842,462.27 1,072,850.00
15,000 GLOBALNET FINL COM INC (b) 533,988.90 315,000.00
26,550 GLOBALNET FINL COM INC (b) (c) 754,551.00 390,285.00
19,950 HELIX TECHNOLOGY CORP 537,495.18 778,050.00
47,750 IKOS SYS INC (b) 347,327.51 516,296.87
29,150 INTEST CORP (b) 549,723.26 433,606.25
105,100 MULTI LINK TELECOMMUNICATIONS (b) 612,060.00 1,090,412.50
96,700 OPTI INC (b) 251,441.82 495,587.50
38,700 PENTASTAR COMMUNICATIONS INC (b) 387,000.00 897,356.25
107,325 PHOTRONICS INC (b) 2,373,187.88 3,045,346.87
14,900 SYMANTEC CORP (b) 402,084.30 803,668.75
73,500 SYMIX SYS INC (b) 742,609.79 652,312.50
102,900 S3 INC (b) 1,225,073.96 1,517,775.00
-------------- --------------
16,303,473.70 20,715,534.99 27.46%
MATERIALS
24,550 COMMERCIAL METALS CO 673,309.14 675,125.00
22,200 FLORIDA ROCK INDS INC 715,721.75 790,875.00
72,800 IMCO RECYCLING INC 821,802.23 395,850.00
62,600 NORTHWEST PIPE CO (b) 978,421.04 743,375.00
23,600 TEXAS INDS INC 758,338.14 681,450.00
39,500 U S AGGREGATES INC 482,694.60 715,937.50
-------------- --------------
4,430,286.90 4,002,612.50 5.31%
</TABLE>
See notes to investments in securities 2 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER SMALL CAP FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
UTILITIES
30,000 CONNECTICUT WTR SVC INC 806,515.65 802,500.00
82,900 MIDCOAST ENERGY RES INC 1,279,954.36 1,305,675.00
-------------- --------------
2,086,470.01 2,108,175.00 2.80%
CASH EQUIVALENTS
5,349,824.37 SSGA MONEY MARKET 5,349,824.37 5,349,824.37 7.09%
-------------- -------------- -------------
Grand Total (d) 63,426,298.02 76,103,404.39 100.90%
============== ============== =============
<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 assets.
(c)Security purchased on March 31, 2000 at a cost of
$754,551 as part of a private placement that has not
been registered with the Securities and Exchange
Commission under the Securities Act of 1933. May be
sold only to dealers in that program or other
accredited investors.
(d)At June 30, 2000, the cost for Federal income tax
purposes was $63,426,298. The aggregate gross
unrealized appreciation and depreciation of
investments in securities based of this cost were as
follows:
Gross unrealized appreciation 16,216,932.79
Gross unrealized depreciation (3,539,826.42)
--------------
--------------
Net unrealized appreciation 12,677,106.37
==============
==============
</FN>
</TABLE>
See notes to investments in securities 3
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER TAX-EXEMPT BOND FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
CLOSED-END FUNDS
----------------
1,200 AMERICAN MUN INCOME 13,950.00 14,325.00
1,900 AMERICAN MUN TERM TR INC II 19,237.50 19,593.75
23,100 AMERICAN MUN TERM TR INC III 231,338.75 233,887.50
56,600 BLACKROCK INSD MUN 2008 782,661.54 799,475.00
32,000 DREYFUS MUN INCOME INC 232,640.00 242,000.00
54,700 DREYFUS STRATEGIC MUNICIPALS 429,087.75 437,600.00
45,300 SELIGMAN SELECT MUN FD INC 416,647.75 424,687.50
29,600 VAN KAMPEN MERITT MUN OPPORT 388,024.00 403,300.00
44,500 VAN KAMPEN MERRITT 496,993.25 506,187.50
23,500 VAN KAMPEN MERRITT TR INVT 312,867.25 315,781.25
-------------- ---------------
3,323,447.79 3,396,837.50 4.94%
MUNICIPAL BONDS
1,500,000 ALABAMA HSG FIN AUTH SNGL FAM 1,518,532.82 1,522,425.00
995,000 ALASKA ST HSG FIN CORP 341,272.52 347,294.80
160,000 ALASKA ST HSG FIN CORP 151,288.98 156,430.40
285,000 ALASKA ST HSG FIN CORP 261,584.24 271,109.10
1,000,000 ARLINGTON CNTY VA INDL DEV 909,558.46 923,860.00
195,000 AURORA CO HSG AUTH MULTIFAMILY 175,608.90 177,988.20
240,000 BELL CNTY TX HLTH FACS DEV 197,576.81 198,117.60
130,000 BEXAR CNTY TX HSG FIN CORP 47,409.05 52,692.90
750,000 BEXAR CNTY TX HSG FIN CORP MF 750,000.00 750,352.50
160,000 BROADVIEW IL TAX INCREMENT 149,595.04 150,307.20
300,000 BUTLER CNTY PA HOSP AUTH CTR 298,529.66 297,624.00
165,000 BUTLER PA AREA SCH DIST 165,798.58 165,094.05
300,000 CALCASIEU PARISH LA PUB TR AUT 304,601.06 305,778.00
265,000 CALIFORNIA HLTH FACS FING REV 266,795.65 266,052.05
345,000 CALIFORNIA HSG FIN AGY REV 122,311.55 128,598.75
110,000 CALIFORNIA STATEWIDE CMNTY DEV 106,188.01 106,603.20
165,000 CALIFORNIA STATEWIDE CMNTYS 151,853.74 154,982.85
255,000 CARBONDALE PA SCH DIST 256,242.98 255,135.15
1,000,000 CARVER CNTY MN HSG & REDEV 941,368.11 953,770.00
160,000 CENTRAL PLATTE VY MET DIST CO 144,807.82 150,713.60
750,000 CHESTERFIELD CNTY VA INDL DEV 665,392.18 673,890.00
150,000 CHESTERFIELD CNTY VA INDL DEV 131,615.06 134,212.50
500,000 CLAYTON CNTY GA HSG AUTH MULTI 461,014.00 464,490.00
130,000 COLLIN CNTY TX HSG FIN CORP 108,204.30 113,200.10
125,000 COLLINSVILLE IL INDL DEV REV 123,602.20 123,578.75
110,000 COLUMBIA CNTY PA HOSP AUTH 97,167.36 96,525.00
120,000 CONYERS GA HSG AUTH REV 118,427.77 119,313.60
295,000 COW CREEK BANK UMPQUA TRIBE 275,524.54 284,356.40
1,070,000 CROW FIN AUTH MINN TRIBAL PUR 994,384.45 1,001,937.30
305,000 CUMBERLAND CNTY PA MUN AUTH 269,478.14 260,878.70
270,000 DAKOTA CNTY MN HSG & REDEV 281,646.97 284,947.20
115,000 DALLAS TX HSG CORP CAP PROGRAM 115,723.46 117,826.70
505,000 DALLAS TX HSG FIN CORP 523,175.20 527,376.55
500,000 DE KALB CNTY GA HSG AUTH REV 498,830.27 500,955.00
115,000 DE KALB CNTY GA MLT FAM HSG 115,915.33 116,467.40
415,000 DENHAM SPRINGS LIVINGSTON HSG 149,266.95 148,175.75
110,000 DISTRICT COLUMBIA HSG FIN AGY 113,249.76 113,551.90
81,692.54 DREW CNTY AR PUB FACS BRD 83,728.53 83,993.00
100,000 E 470 BUSINESS MET DIST CO 91,813.55 93,739.00
135,000 ELKHART CNTY IN HOSP AUTH REV 139,661.05 139,307.85
295,000 ELKHART CNTY IN HOSP AUTH REV 251,036.28 256,750.30
160,000 ELKHART IN HSG FIN CORP MTG 158,527.79 159,740.80
155,000 FLINT MI HOSP BLDG AUTH REV 130,179.41 125,895.65
1,385,000 FOOTHILL/EASTERN TRANSN CORRID 280,122.15 313,203.90
</TABLE>
See notes to investments in securities 1 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER TAX-EXEMPT BOND FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
MUNICIPAL BONDS (Cont'd)
------------------------
1,000,000 FRANKLIN CNTY OH HLTHCARE FACS 901,133.45 859,170.00
315,000 FULTON CNTY GA DEV AUTH REV 340,894.27 340,571.70
415,000 GAINESVILLE & HALL CNTY GA 396,815.46 399,615.95
345,000 GAINESVILLE & HALL CNTY GA 329,000.44 333,080.25
380,000 GAINESVILLE & HALL CNTY GA 354,210.65 367,805.80
100,000 GEORGETOWN KY WTR & SWR REV 101,000.00 101,317.00
150,000 GEORGETOWN KY WTR & SWR REV 151,500.00 151,879.50
150,000 GLENDALE CA HOSP REV 167,127.47 169,017.00
185,000 GRAND RAPIDS CHARTER TWP MI 159,048.51 161,921.25
220,000 GRANT CNTY WA PUB HOSP DIST 186,671.37 198,209.00
220,000 GROVE CITY PA AREA HOSP AUTH 194,850.74 193,527.40
1,250,000 HAMILTON CNTY OH HOSP FACS REV 1,260,918.88 1,264,062.50
160,000 HARRIS CNTY TX 161,106.13 160,248.00
150,000 HARRIS CNTY TX HSG FIN CORP 143,030.74 143,034.00
170,000 HARRIS CNTY TX HSG FIN CORP 157,260.91 159,215.20
120,000 HARRISON CNTY TX HEALTH FACS 107,561.21 107,506.80
180,000 HAZLETON PA HEALTH SVCS AUTH 158,015.93 153,489.60
220,000 HIGHLANDS RANCH MET DIST 3 CO 189,852.45 200,488.20
125,000 HORIZON HOSP SYS AUTH PA REV 117,613.69 114,315.00
295,000 HOUMA TERREBONNE PUB TR FING 103,770.99 104,347.40
415,000 HUNTINGTON WV RSDNTL MTG REV 177,961.69 175,316.75
115,000 ILLINOIS DEV FIN AUTH 117,224.57 117,740.45
705,000 ILLINOIS DEV FIN AUTH REV 628,075.47 623,734.65
160,000 ILLINOIS DEV FIN AUTH REV 142,213.43 140,430.40
315,000 ILLINOIS DEV FIN AUTH REV 265,047.06 265,053.60
170,000 ILLINOIS EDL FACS AUTH REVS 159,034.10 157,576.40
445,000 ILLINOIS EDL FACS AUTH REVS 401,961.38 408,354.25
110,000 ILLINOIS EDL FACS AUTH REVS 94,471.63 97,292.80
400,000 ILLINOIS HEALTH FACS AUTH REV 400,000.00 400,756.00
220,000 ILLINOIS HSG DEV AUTH ELDERLY 223,788.82 224,536.40
110,000 INDIANA BD BK 107,003.33 110,624.80
155,000 INDIANA BD BK 146,090.10 150,433.70
620,000 INDIANA HLTH FAC FING AUTH REV 545,785.04 548,892.20
150,000 INDIANA HLTH FAC FING AUTH REV 122,507.57 124,695.00
275,000 INDIANA HLTH FAC HOSP REV 223,398.41 219,381.25
340,000 INDIANA HLTH FAC HOSP REV 349,341.41 348,156.60
365,000 INDIANA HLTH FAC HOSP REV 375,028.28 373,756.35
175,000 INDIANA ST DEV FIN AUTH REV 170,412.94 176,370.25
500,000 INDIANA ST EDL FACS AUTH REV 483,041.94 489,110.00
205,000 INDIANAPOLIS IN ECON DEV REV 209,934.22 208,931.90
150,000 INDIANAPOLIS IN ECON DEV REV 146,215.84 147,225.00
180,000 IOWA FIN AUTH HLTH CARE FACS 161,910.30 158,164.20
110,000 IOWA FIN AUTH SMALL BUS DEV 115,295.98 115,520.90
185,000 KING CNTY WASH HSG AUTH HSG 169,128.34 170,860.45
220,000 KITSAP CNTY WA CONS HSG AUTH 199,403.29 202,536.40
1,525,000 KITSAP CNTY WA CONS HSG AUTH 1,504,457.50 1,505,800.25
295,000 LA PORTE CNTY IN HOSP AUTH FAC 264,139.97 254,077.60
300,000 LEWIS CNTY WA PUB HOSP DIST 303,999.16 307,110.00
800,000 LONG BEACH MISS URBAN RENEWAL 800,000.00 799,856.00
130,000 LUBBOCK TX HSG FIN CORP 131,365.19 131,820.00
150,000 LUFKIN TX HEALTH FACS DEV CORP 121,349.39 115,648.50
500,000 MARICOPA CNTY AZ INDL DEV 500,000.00 501,030.00
220,000 MARICOPA CNTY AZ INDL DEV 220,629.02 221,865.60
1,225,000 MARICOPA CNTY AZ INDL DEV 1,225,000.00 1,228,809.75
150,000 MASHANTUCKET WESTERN PEQUOT 84,934.44 86,535.00
150,000 MASON CNTY WV REV 52,867.10 53,989.50
750,000 MASSACHUSETTS ST INDL FIN AGY 720,572.40 718,597.50
</TABLE>
See notes to investments in securities 2 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER TAX-EXEMPT BOND FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
MUNICIPAL BONDS (Cont'd)
------------------------
130,000 MAUMELLE AR HSG DEV CORP FIRST 134,536.88 134,924.40
130,000 MCKEAN CNTY PA HOSP AUTH REV 114,928.75 110,402.50
285,000 MET GOVT NASHVILLE DAVIDSON TN 258,009.60 266,429.40
125,000 METRO GOVT NSHVILLE TN INDL 130,975.79 131,025.00
220,000 MICHIGAN HIGHER ED FACS AUTH 200,022.71 208,480.80
100,000 MICHIGAN ST STRATEGIC FD 92,374.60 96,570.00
875,000 MONROE MCKEEN PLAZA HSG DEV LA 885,237.78 889,271.25
380,000 MONTGOMERY CNTY OH HOSP REV 388,380.58 384,628.40
100,000 MONTGOMERY CNTY PA MLT FAM HSG 88,263.04 98,303.00
110,000 MONTGOMERY CNTY PA MLT FAM HSG 107,320.74 108,600.80
175,000 MOREHEAD KY INDL BLDG REV 175,728.21 175,708.75
150,000 MUSKOGEE CNTY OK HOME FIN AUTH 67,715.03 67,914.00
120,000 NEVADA HSG DIV 108,840.87 110,156.40
480,000 NEW HAMPSHIRE HIGH EDL & HLTH 431,298.59 440,889.60
160,000 NEW HAMPSHIRE HIGHER ED & HLTH 142,223.58 144,651.20
375,000 NEW HAMPSHIRE HIGHER EDL & HLT 315,794.99 319,863.75
380,000 NEW HAMPSHIRE ST HSG FIN AUTH 121,710.01 124,776.80
500,000 NEW HAMPSHIRE ST INDL DEV AUTH 501,906.61 497,075.00
295,000 NEW MEXICO MTG FIN AUTH 313,365.29 317,956.90
115,000 NEW YORK CITY INDL DEV CIVIC 111,142.27 112,604.55
500,000 NEWPORT KY PUB PPTYS CORP REV 500,000.00 493,680.00
445,000 NEWTON KS HOSP REV 420,708.99 417,890.60
580,000 NORTEX HSG FIN CORP TX 612,091.16 617,381.00
1,300,000 NORTH CENT TX HLTH FAC DEV 1,243,756.25 1,212,328.00
115,000 NORTH CHARLESTON S C MUN GOLF 106,745.22 107,229.45
220,000 NORTH CHARLESTON S C MUN GOLF 190,490.65 195,294.00
115,000 OHIO CAP CORP 102,743.28 104,539.60
220,000 OHIO CNTY W VA RESIDUAL REV 78,633.00 78,245.20
160,000 OKLAHOMA ST INDS AUTH REV 140,703.14 139,201.60
150,000 OKLAHOMA ST INDS AUTH REV 128,693.12 126,145.50
110,000 OTTUMWA IA HOSP FAC REV 102,989.23 102,756.50
250,000 PALMER AK HOSP REV 238,249.39 242,720.00
650,000 PANHANDLE TX REGL HSG FIN 630,882.56 634,926.50
250,000 PANHANDLE TX REGL HSG FIN CORP 250,000.00 250,795.00
180,000 PENNSYLVANIA ECONOMIC DEV FING 166,845.15 165,191.40
190,000 PENNSYLVANIA ECONOMIC DEV FING 173,977.61 172,115.30
200,000 PENNSYLVANIA ECONOMIC DEV FING 180,836.29 179,184.00
310,000 PENNSYLVANIA ST HIGHER EDL FAC 302,811.62 312,011.90
1,100,000 PHILIDELPHIA PA AUTH FOR INDL 1,067,000.35 1,071,158.00
1,000,000 PHOENIX AZ INDL DEV AUTH MTG 899,172.09 907,360.00
220,000 PITTSBURGH PA URBAN REDEV AUTH 220,446.90 222,728.00
185,000 PLYMOUTH MN MULTIFAMILY HSG 203,855.94 204,832.00
150,000 PRINCE WILLIAM CNTY VA INDL 133,307.17 134,991.00
210,000 QUINAULT INDIAN NATION WA 196,461.12 200,083.80
1,000,000 RHODE ISLAND ST ECON DEV CORP 1,000,000.00 1,009,460.00
130,000 RHODE ISLAND ST HLTH & ED BLDG 118,917.46 117,678.60
165,000 RHODE ISLAND ST HLTH & ED BLDG 145,821.93 142,487.40
150,000 RHODE ISLAND ST HLTH & ED BLDG 130,370.31 129,132.00
500,000 RHODE ISLAND ST HLTH & EDL REV 485,461.72 484,135.00
1,080,000 RHODE ISLAND ST HLTH & EDL REV 954,205.71 1,002,434.40
150,000 ROSELLE ILL MULTI FAM HSG REV 156,607.58 157,371.00
115,000 SALT LAKE CNTY UTAH COLLEGE 106,274.97 106,954.60
140,000 SALT LAKE CNTY UTAH COLLEGE 125,462.25 127,866.20
525,000 SANTA FE NM 514,621.52 521,865.75
215,000 SHELBY CNTY TN HLTH EDL & HSG 215,383.87 216,640.45
445,000 SHELBY CNTY TN HLTH EDL & HSG 486,643.44 489,206.30
110,000 SHELBY CNTY TN HLTH EDL & HSG 105,299.44 105,645.10
</TABLE>
See notes to investments in securities 3 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CLEARWATER TAX-EXEMPT BOND FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (a) NET ASSETS
--------- -------- ---- --------- ----------
MUNICIPAL BONDS (Cont'd)
------------------------
800,000 SHELBY CNTY TN HLTH EDL & HSG 697,466.40 766,584.00
625,000 SHELBY CNTY TN HLTH EDL & HSG 557,250.92 561,018.75
130,000 SHELBY CNTY TN HLTH EDL & HSG 115,638.60 117,130.00
150,000 SHELBY CNTY TN HLTH EDL & HSG 135,161.32 136,387.50
195,000 SNOHOMISH CNTY WA 171,828.10 176,946.90
515,000 SOUTH CAROLINA JOBS ECON DEV 505,546.94 511,580.40
1,000,000 SOUTH CAROLINA JOBS ECON DEV 993,926.39 990,830.00
295,000 SOUTH DAKOTA HSG DEV AUTH 255,935.34 259,446.60
150,000 SOUTH DAKOTA ST HLTH & EDL REV 135,820.49 135,673.50
130,000 SOUTH WA CNTY INDPT SCH DIST 122,344.00 128,248.90
700,000 SOUTHFIELD MICH ECONOMIC DEV 594,280.82 633,346.00
130,000 SOUTHWESTERN CO 132,143.56 132,281.50
385,000 SOUTHWESTERN ILL DEV AUTH REV 372,721.61 376,414.50
165,000 ST JOSEPH CNTY IND HOSP AUTH 144,816.08 144,035.10
250,000 ST PAUL MN HSG & REDEV AUTH 250,000.00 252,462.50
185,000 SUFFOLK VA REDEV & HSG AUTH 166,497.26 166,870.00
625,000 TARRANT CNTY TX HEALTH FACS 512,660.71 521,068.75
295,000 TENNESSEE HSG DEV AGY 110,421.12 111,728.30
210,000 TEXAS ST DEPT HSG & CMNTY 210,253.51 211,562.40
235,000 TEXAS ST DEPT HSG & CMNTY 236,982.50 236,990.45
205,000 TROY MICH ECONOMIC DEV CORP 212,125.35 212,925.30
185,000 TULSA OKLA PUB FACS AUTH REC 188,461.11 191,376.95
260,000 VANCOUVER WA HSG AUTH REV 227,090.97 231,342.80
255,000 VICTORIA COUNTY TEX HOSPITAL 227,201.25 225,241.50
150,000 WASHINGTON ST HEALTH CARE FACS 141,699.08 146,814.00
135,000 WASHINGTON ST HEALTH CARE FACS 118,220.00 123,369.75
110,000 WASHINGTON ST NONPROFIT HSG 93,440.20 96,254.40
350,000 WASHINGTON ST NONPROFIT HSG 307,156.45 319,014.50
315,000 WISCONSIN HSG & ECON DEV REV 322,631.72 323,205.75
235,000 WISCONSIN HSG & ECONOMIC DEV 213,403.41 220,808.35
220,000 WISCONSIN HSG & ECONOMIC DEV 207,580.28 209,844.80
130,000 WISCONSIN ST HEALTH & EDL FACS 109,840.97 108,434.30
125,000 WISCONSIN ST HEALTH & EDL FACS 105,765.49 101,113.75
110,000 WISCONSIN ST HEALTH & EDL FACS 107,156.63 106,366.70
1,250,000 WISCONSIN ST HLTH & EDL FACS 1,127,208.45 1,175,837.50
1,615,000 WOODHILL PUB FAC CORP TEX 1,585,435.97 1,585,542.40
150,000 WYOMING CMNTY DEV AUTH HSG REV 145,839.49 150,256.50
220,000 AKRON OH CTFS PARTN 198,520.24 209,948.20
-------------- ---------------
60,770,302.36 61,304,855.80 89.12%
CASH EQUIVALENTS
3,105,816.35 SSGA FDS TAX FREE MONEY MARKET 3,105,816.35 3,105,816.35 4.51%
-------------- --------------- -------------
Grand Total (b) 67,199,566.50 67,807,509.65 98.57%
============== =============== =============
<FN>
Notes to Investments in Securities
(a)Securities are valued in accordance with procedures
described in note 2 to the financial statements.
(b)At June 30, 2000, the cost for Federal income tax
purposes was $67,199,567. The aggregate gross
unrealized appreciation and depreciation of
investments in securities based of this cost were as
follows:
Gross unrealized appreciation 801,581.12
Gross unrealized depreciation (193,637.97)
--------------
--------------
Net unrealized appreciation 607,943.15
==============
==============
</FN>
</TABLE>
See notes to investments in securities 4
