Carillon Capital Fund
of
Carillon Investment Trust
SEMIANNUAL
REPORT
April 30, 1998
<PAGE>
PRESIDENT'S MESSAGE
May 31, 1998
Financial Markets
The United States stock market moved sharply higher during the
six months ending April 30, 1998. The market benefitted again
from a period of generally good corporate earnings results, a
moderately strong economy with low inflation, falling interest
rates, increased merger activity, and fresh cash flows coming
into equity mutual funds. Much of the gain occurred from late
January to late April, as the market shook off concerns about
the financial crisis in Southeast Asia and soared 1500 points on
the Dow Jones Industrial Average to above the 9000 level.
Stock sectors leading the market's advance included broadcast
media, entertainment, health care, and selected technology
issues. Lagging the market's advance were tobacco, metals and
mining, and energy-related stocks. Large capitalization stocks
continued their outperformance over smaller stocks, although
financial performance, growth prospects and valuation levels all
pointed toward small capitalization stocks as relatively better
values. Large flows into mutual funds seemed to be the biggest
factor in favoring larger stocks, as mutual fund managers with
billions of dollars to invest favored the liquidity afforded by
the greater trading volume of larger issues.
Fixed Income markets continued to celebrate the low inflation
environment and even a federal budget surplus with bond yields
falling and bond prices rising. However, the gains were not
nearly as much as the previous six months. The inflation picture
improved steadily during the period as weak raw material prices
(particularly crude oil), a strong U.S. dollar, lower cost Asian
imports and sufficient productivity to offset much of the
increases in labor costs all contributed to the lowest level of
reported inflation in decades. The Federal Reserve Board worried
occasionally about whether the economy was gaining too much
strength, but due to low inflation and concerns about the Asian
financial situation the Fed has kept short-term interest rates
steady for more than a year.
Asset Allocation
Under normal conditions, the Carillon Capital Fund will be
structured approximately 63 percent, 30 percent, and 7 percent
in stocks, bonds, and money market instruments, respectively.
However, as market conditions deviate from historical norms, the
Fund repositions its asset mix toward the apparently more
attractive asset class. The following table highlights the
current allocation of fund assets, six months ago, twelve months
ago, and at a long term normal portfolio allocation.
<TABLE>
<CAPTION>
Asset
Category 5/31/98* 10/31/97 4/30/97 Normal
- -------- ------- -------- ------- ------
<S> <C> <C> <C> <C>
Common Stocks 36% 37% 35% 63%
Bonds 40% 37% 43% 30%
Cash 24% 26% 22% 7%
---- ---- ---- ----
100% 100% 100% 100%
</TABLE>
*The fund held an unusually large cash position as of April 30,
1998 to settle a planned redemption of related party shares on
May 1, 1998. The asset allocation on May 31, 1998 is more
representative of the recent asset allocation strategy.
<PAGE>
The Capital Fund is managed with a long-term asset allocation
philosophy. The asset allocation decision of investments among
stocks, bonds and money market investments is made with a model
that incorporates long-term historical relationships of the
basic drivers of stock market valuations -- corporate profits,
interest rates, inflation rates, and price earnings ratios. In
addition, the model analyzes over 100 different market-
influencing factors including monetary, economic, technical, and
global indicators because of their potential for moving markets
away from fundamental value over intermediate time periods.
Bonds and money market investments are also analyzed from a
long-term valuation and technical perspective to help determine
their weightings within the Portfolio.
The model's current asset allocation reflects the fact that the
U.S. stock market is selling at its highest combined level of
earnings, dividends, book values, replacement values and
percentage of Gross Domestic Product in this century. This
includes 1929. In fact, the current valuation represents
approximately a 30% premium to October 1929 valuation levels.
Other, more technical, market-influencing factors are deemed
neutral at present. The Capital Fund's philosophy as an asset
allocation fund is to own fewer stocks when they are so richly
valued and more stocks when valuations are historically lower.
Therefore, the Fund has owned less than a normal allocation to
U.S. stocks during the last several years. This has negatively
impacted relative fund performance, but should work in favor of
the Fund's relative performance if and when stocks return to
more normal valuation levels.
The bond and money market allocations are above normal due to
the higher than normal real interest rates (actual interest
rates minus inflation rates) available from fixed income
investments, a favorable fixed income technical picture, and the
underweighting of stocks in the Portfolio because of the
fundamental valuation concerns noted above.
Performance
The Fund's total return of 3.51 percent over the past six months
has been very disappointing. The Fund did not own enough stocks
and was not in the right market sectors during this period.
Individual stock security selection for the Fund is accomplished
with an earning growth discount model that analyzes companies
for a combination of high profitability, consistent performance,
excellent growth, good quality, relative value, and the
likelihood that a recognition of value will take place in the
market. This approach has moved the Fund's stock selection into
smaller capitalization issues over the last several years. Fund
management strongly believes that smaller stocks currently
represent better relative value than larger capitalization
stocks. Smaller stocks have historically outperformed larger
stocks because of better growth and profitability. We believe
they will again, especially since smaller stocks are selling for
lower multiples of current earnings and are projected to grow
earnings faster into the future. Therefore, the Fund has owned
a large percentage of smaller stocks that have advanced far less
than larger stocks during the last six months.
The Capital Fund's management also believes diversification is
an important investment principle. In theory, effective
diversification enhances the long-term risk/reward
characteristics of a portfolio by counterbalancing risks of
individual securities. Stock diversification in the Capital Fund
includes owning international stocks, precious metal stocks, and
real estate related issues, as well as traditional U.S. stocks.
These investments have negatively impacted recent fund
performance, since traditional U.S. stocks have outpaced almost
all market sectors.
Outlook
There is obviously no way of accurately predicting where this
extraordinary stock market will go from here. I believe that, at
some point, the less-than-precise laws of economics will
overcome the human emotions and dollars that are currently
driving larger capitalization, traditional U.S. stocks higher.
Although many improvements are present in today's world, I
believe a combination of the following concerns will eventually
pressure the economy, corporate profits, and stock prices lower:
Profit margin pressures from higher labor costs, more
competitive imports and overcapacity
Stock valuations that have risen far faster than corporate
profits
An inventory build-up that has been evident in the last
several GDP reports
A sharply deteriorating U.S. balance of payments
High levels of household debt, stock margin debt, and usage
of leveraged stock market related derivative financial
instruments
Highly speculative activity in stocks with no earnings
Lack of overall market strength to the degree seen in the
major market averages
Our primary concern in the current market environment is to be
able to limit losses in a decline and subsequently be able to
invest wisely in anticipation of a future longer-term advance.
Therefore, money market investments will be held in higher
quantities than normal until more attractive valuations appear.
Current stock holdings center on four areas I believe represent
good value within an otherwise richly valued market -- Energy
Service Stocks, Natural Gas Producing Companies, Real Estate
Investment Trusts, and export oriented industries within the
Asian marketplace.
We appreciate the confidence you have placed in the Carillon
Capital Fund and we look forward to providing you with better
relative performance than we have recently experienced.
Sincerely,
/s/ George Clucas
George L. Clucas, President
May 31, 1998
This report was prepared for Carillon Capital Fund of Carillon
Investment Trust shareholders and may be distributed to others
if preceded or accompanied by a current prospectus.
<PAGE>
CARILLON CAPITAL FUND
STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------------------------
April 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities, at value (cost $47,011,794) $47,681,474
Cash 18,822
Receivable for investment securities sold 181,303
Interest and dividends receivable 254,810
Prepaid expenses 7,803
-----------
48,144,212
LIABILITIES
Payable for shares redeemed 22,592,566
Investment advisory fees 29,724
Professional fees 7,282
Portfolio accounting and custody fees 4,893
Printing expenses 2,759
Transfer agency fees 816
-----------
22,638,040
-----------
NET ASSETS
Paid-in capital 21,065,464
Accumulated undistributed net investment income 267,992
Accumulated undistributed net realized gain 3,503,036
Unrealized appreciation, net 669,680
-----------
$25,506,172
===========
Shares outstanding (without par value, unlimited authorization) 2,029,062
Net asset value and redemption price per share $ 12.57
===========
Offering price per share (Net asset value per share/.95)* $ 13.23
===========
</TABLE>
*A sales charge of 5% is imposed on investments of less than
$50,000. Reduced sales charges apply for investments in excess
of this amount.
The accompanying notes are an integral part of the financial
statements.
<PAGE>
CARILLON CAPITAL FUND
STATEMENT OF OPERATIONS
- ----------------------------------------------
For the Six Months Ended April 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME
Interest $925,973
Dividends (net foreign withholding taxes of $13,388) 234,531
-----------
1,160,504
-----------
EXPENSES
Investment advisory fees 174,933
Portfolio accounting fees 16,072
Professional fees 10,126
Trustees' fees and expenses 9,604
Custodial fees and expenses 7,538
Transfer agency fees 5,368
Registration and filing fees 5,320
Other 2,078
-----------
231,039
-----------
NET INVESTMENT INCOME 929,465
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 3,411,261
Net change in unrealized appreciation/(depreciation)
of investments (2,686,939)
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 724,322
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,653,787
===========
</TABLE>
The accompanying notes are an integral part of the
financial statements.
<PAGE>
CARILLON CAPITAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
========================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1998 October 31, 1997
---------------- ----------------
(Unaudited)
<S> <C> <C>
OPERATIONS
Net investment income $ 929,465 $ 1,777,393
Net realized gain on investments 3,411,261 3,633,883
Net change in unrealized
appreciation/(depreciation) of investments (2,686,939) (1,139,598)
----------- -----------
1,653,787 4,271,678
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (874,986) (1,751,289)
Net realized gain on investments (3,605,844) (3,334,642)
----------- -----------
(4,480,830) (5,085,931)
----------- -----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 7,216 905,934
Issued in reinvestment of dividends 4,480,553 5,085,587
Payments for shares redeemed (23,271,701) (931,167)
----------- -----------
(18,783,932) 5,060,354
----------- -----------
NET INCREASE/(DECREASE) IN NET ASSETS (21,610,975) 4,246,101
NET ASSETS
Beginning of period 47,117,147 42,871,046
----------- -----------
End of period $25,506,172 $47,117,147
=========== ===========
Undistributed Net Investment Income $ 267,992 $ 221,155
=========== ===========
FUND SHARE TRANSACTIONS:
Sold 573 68,350
Issued in reinvestment of dividends 366,026 394,234
Redeemed (1,849,641) (69,520)
----------- -----------
Net (decrease) from share transactions (1,483,042) 393,064
=========== ===========
</TABLE>
The accompanying notes are an integral part of the
financial statements.
<PAGE>
Carillon Capital Fund
Schedule of Investments
- ---------------------------------------------------------
APRIL 30, 1998
(Unaudited)
COMMON STOCKS - 43.75%
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BANKING AND FINANCIAL SERVICES - 10.53%
AFP Provida SA 23,000 $ 411,125
Banco BHIF ADR 22,000 273,625
The Chile Fund 8,000 129,500
Duff & Phelps Credit Rating Company 4,000 228,000
Fahnestock Viner Holdings Class-A 9,500 191,781
Hyperion 1999 Term Trust 100,000 700,000
Income Opportunity Fund 1999 30,000 285,000
Income Opportunity Fund 2000 26,000 248,625
Templeton Global Income Fund 29,000 217,500
-----------
2,685,156
-----------
CAPITAL GOODS - 1.72%
AGCO Corporation 7,500 200,625
Lindsay Manufacturing Company 5,057 237,047
-----------
437,672
-----------
CONSUMER CYCLICAL - 1.91%
CPAC Incorporated* 17,500 201,250
NCI Building Systems Incorporated* 5,500 286,000
-----------
487,250
-----------
CONSUMER NON-DURABLE - 3.63%
Charoen Pokphand Feedmill ADR* 21,025 96,221
Complete Management Incorporated* 18,000 145,125
ICN Pharmaceuticals Incorporated 5,200 256,100
Scientific Games Holdings Corporation* 9,000 200,250
Vtech Holdings Limited ADR 6,500 228,245
-----------
925,941
-----------
ENERGY - 13.03%
Basin Exploration Incorporated* 11,000 218,625
Callon Petroleum Company* 10,000 177,500
Domain Energy Corporation* 12,000 156,000
Giant Industries Incorporated 9,500 205,438
Gulf Island Fabrication, Incorporated* 500 11,625
Marine Drilling Company Incorporated* 14,000 340,375
Maverick Tube Corporation* 12,000 209,250
Miller Exploration Company* 21,000 173,250
OYO Geospace Corporation* 6,000 155,250
Pride International Incorporated* 14,000 340,375
Trico Marine Services* 16,000 362,000
Unifab International Incorporated* 15,000 346,875
YPF SA Sponsored ADR 18,000 627,750
-----------
3,324,313
-----------
MANUFACTURING - 2.60%
De Beers Consolidated Mines ADR 8,000 206,000
Fibermark Incorporated* 9,000 185,625
Northwest Pipe Company* 10,000 220,000
Royal Oak Mines Incorporated* 45,000 50,625
-----------
662,250
-----------
REAL ESTATE - 6.71%
Associated Estates Realty Corporation 10,000 191,250
City Developments Limited ADR 25,000 108,145
Merry Land & Investment Company 9,000 189,563
Pacific Gulf Properties 10,000 220,000
Parkway Properties Incorporated 7,000 230,125
Trinet Corporate Realty Trust 8,200 293,662
United Dominion Realty Trust 13,000 176,312
Winston Hotels, Incorporated 24,300 302,230
-----------
1,711,287
-----------
TECHNOLOGY - 3.62%
Cybex Corporation 7,500 177,188
ECI Telecommunications ORD* 10,000 305,000
Nam Tai Electronics 16,001 254,016
Vertex Communications Corporation* 7,000 186,375
-----------
922,579
-----------
Total Common Stock (cost $10,672,252) 11,156,448
FOREIGN COMMON STOCK - 3.26%
HONG KONG - 1.89%
Smartone Telecomm 87,000 228,562
Techtronic Industries* 849,400 252,208
-----------
480,770
-----------
MALAYSIA - 1.37%
Bumi Armada Berhad 150,000 132,352
Road Builder Holdings BHD 248,000 218,823
-----------
351,175
-----------
Total Foreign Common Stock (cost $886,104) 831,945
-----------
PREFERRED STOCK - .98%
Freeport McMoran Copper & Gold 10,000 251,250
Total Preferred Stock (cost $347,888)
<CAPTION>
U.S. TREASURY OBLIGATIONS - 8.63%
PRINCIPAL VALUE
--------- -----
<S> <C> <C>
U.S. TREASURY NOTES - 8.63%
5.750% due 08/15/03 $ 750,000 752,110
7.875% due 11/15/04 1,300,000 1,449,500
Total U.S. Treasury Notes (cost $2,098,721) 2,201,610
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS - 7.85%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.79%
1662 H (6.250% due 01/15/09) 212,487 210,696
1559 VP (5.500 % due 02/15/20) 510,000 500,840
-----------
711,536
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 5.06%
Remic 93-12 ED (7.500% due 02/25/06) 1,000,000 1,034,096
Remic 93-163 PN (7.000% due 07/25/07) 250,000 257,103
-----------
1,291,199
Total Collateralized Mortgage Obligations
(cost $1,951,194) 2,002,735
-----------
MORTGAGE BACKED SECURITIES - 5.50%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.76%
7.500% due 06/01/07 34,903 35,302
8.250% due 03/01/12 91,119 94,275
8.500% due 03/01/16 124,861 130,471
7.500% due 07/01/17 51,338 52,563
11.000% due 04/01/19 99,183 110,628
10.500% due 05/01/19 101,888 111,376
11.000% due 11/01/19 152,631 170,245
-----------
704,860
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.80%
9.500% due 09/01/05 18,311 19,211
5.500% due 01/01/09 275,820 268,072
5.500% due 04/01/09 177,932 172,516
-----------
459,799
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - .94%
9.000% due 11/15/16 88,104 95,496
9.500% due 05/15/18 42,064 45,495
9.000% due 12/15/19 91,446 98,882
-----------
239,873
-----------
Total Mortgage-Backed Securities
(cost $1,324,082) 1,404,532
-----------
CORPORATE BONDS AND NOTES - 17.42%
BANKING & FINANCIAL SERVICE - 3.50%
Hutchison Whampoa (6.950% due 08/01/07) 500,000 472,700
Indah Kiat Sr Notes (10.000% due 07/01/07) 500,000 417,500
-----------
890,200
-----------
MISCELLANEOUS - 7.73%
Enersis (6.600% due 12/01/26) 500,000 489,743
Gulf Canada Res (8.350% due 08/01/06) 500,000 540,336
News American Holdings (8.500% due 02/15/05) 400,000 441,620
TE Products Pipeline (7.510% due 01/15/28) 500,000 500,983
-----------
1,972,682
-----------
TECHNOLOGY - 1.41%
Loewen Group International Incorporated
(8.250% due 04/15/03) 350,000 360,509
-----------
UTILITIES - 4.78%
New Orleans Public Service Incorporated
(8.670% due 04/01/05) 300,000 300,556
TCI Communications Incorporated
(8.650% due 9/15/04) 250,000 276,333
Pohang Iron & Steel (7.125% due 11/01/06) 750,000 642,306
-----------
1,219,195
-----------
Total Corporate Bonds (cost $4,341,185) 4,442,586
-----------
SHORT-TERM INVESTMENTS - 99.55%
GOVERNMENT AGENCY NOTES - 15.58%
FHLMC (5.440% due 05/28/98) 2,000,000 1,991,900
FHLMC (5.440% due 06/30/98) 2,000,000 1,982,067
-----------
3,973,967
-----------
COMMERCIAL PAPER - 19.61%
Anheuser Busch Company (5.500% due 05/01/98) 1,500,000 1,500,000
Cargill Financial Services(5.460% due 05/01/98) 2,000,000 2,000,000
Walt Disney Company (5.500% due 05/01/98) 1,500,000 1,500,000
-----------
5,000,000
-----------
VARIABLE RATE DEMAND NOTES <F1> - 64.36%
American Family Financial Services
(5.235% due 05/06/98) 2,349,999 2,349,999
General Mills Incorporated (5.261% due 05/05/98) 2,349,838 2,349,838
Johnson Controls, Incorporated
(5.261% due 05/05/98) 2,316,565 2,316,566
Pitney Bowes Credit Corporation
(5.261% due 05/05/98) 2,350,000 2,350,000
Sara Lee (5.256% due 05/05/98) 2,349,999 2,349,999
Warner Lambert (5.235% due 05/06/98) 2,349,999 2,349,999
Wisconsin Electric Power Corporation
(5.235% due 05/06/98) 2,350,000 2,350,000
-----------
16,416,401
-----------
Total Short-Term Investments (cost $25,390,368) 25,390,368
TOTAL INVESTMENTS<F2> - 186.94% (cost $47,011,794) 47,681,474
-----------
OTHER ASSETS AND LIABILITIES - (86.94%) (22,175,302)
-----------
TOTAL NET ASSETS - 100.00% $25,506,172
===========
*Non-income producing
(ADR) American Depository Receipt
<FN>
<F1> Interest rates vary periodically based on current market rates. The
maturity shown for each variable rate demand note is the later of the next
scheduled interest rate adjustment date or the date on which principal can
be recovered through demand. Information shown is as of April 30, 1998.
<F2> Gross unrealized appreciation and depreciation of securities April
30,1998 for financial reporting purposes was $1,962,158 and ($1,292,478)
respectively; tax amounts were substantially the same.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial
statements.
<PAGE>
CARILLON CAPITAL FUND
NOTES TO FINANCIAL STATEMENTS
=====================================================
April 30, 1998
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Carillon Capital Fund (the Fund) is a series of Carillon
Investment Trust (the Trust) registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund seeks to provide the
highest total return through a combination of income and capital
appreciation consistent with the reasonable risks associated
with an investment portfolio of above average quality by
investing in equity securities, debt instruments, and money
market instruments.
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 revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Securities valuation - Securities traded on securities exchanges
(including securities traded in both the over-the-counter market
and on an exchange), or listed on the NASDAQ National Market
System, are valued at the last sales price as of the close of
the New York Stock Exchange on the day of valuation, or if there
were no reported sales on that date, the last bid price.
Securities traded only in the over-the-counter market are valued
at the last bid price, as of the close of trading on the New
York Stock Exchange, quoted by brokers that make markets in the
securities. Other securities for which market quotations are
not readily available are valued at fair value as determined in
good faith under procedures adopted by the Board of Trustees.
Money market instruments with a remaining maturity of 60 days or
less are valued at amortized cost which approximates market.
Securities transactions and investment income - Securities
transactions are recorded on the trade date (the date the order
to buy or sell is executed). Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual
basis. All accretion of discounts is recognized currently under
the effective interest method. Amortization of premiums is
recognized currently under the straight-line method. Gains and
losses on sales of investments are calculated on the identified
cost basis for financial reporting and tax purposes. The cost
of investments is substantially the same for financial reporting
and tax purposes.
Federal taxes - It is the intent of the Fund to comply with the
requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially
all of its net investment income and any net realized capital
gains. Therefore, no provision for income or excise taxes has
been recorded.
Dividends and capital gains distributions - Dividends from net
investment income are declared and paid quarterly by the Fund.
Net realized capital gains are distributed periodically, no less
frequently than annually. Dividends from net investment income
and capital gains distributions are recorded on the ex-dividend
date. All dividends and distributions are automatically
reinvested in additional shares of the Fund at the net asset
value per share unless the shareholder requests such dividends
and distributions be paid in cash.
The amount of dividends and distributions are determined in
accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in
nature, such amounts are reclassified within the capital
accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and
distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not
for tax purposes are reported as dividends in excess of net
investment income or distributions in excess of net realized
capital gains. To the extent they exceed net investment income
and net realized capital gains for tax purposes, they are
reported as distributions of paid-in-capital.
NOTE 2 - TRANSACTIONS WITH AFFILIATES
Investment advisory fees - The Fund pays investment advisory
fees to Carillon Advisers, Inc. (the Adviser) under terms of an
Investment Advisory Agreement. Certain officers and directors
of the Adviser are affiliated with the Fund. The Fund pays the
Adviser, as full compensation for all services and facilities
furnished, a monthly fee computed on a daily basis, at an annual
rate of .75% of the first $50,000,000, .65% of the next
$100,000,000, and .50% of all amounts over $150,000,000 of the
net assets of the Fund.
The Investment Advisory Agreement provides that if, in any
calendar quarter, the total of all ordinary business expenses
applicable to the Trust should exceed the expense limitations as
required by any applicable state law, the Adviser will reimburse
the Trust for such excess. No such reimbursements were required
for the periods presented in the financial statements.
In addition to providing investment advisory services, the
Adviser is responsible for providing certain administrative
functions to the Fund. The Adviser has entered into an
Administration Agreement with Carillon Investments, Inc. (the
Distributor) under which the Distributor furnishes substantially
all of such services for an annual fee of .20% of the Fund's
average net assets. The fee is borne by the Adviser, not the
Fund.
Distribution agreement - The Distributor serves as the principal
underwriter of the shares of the Trust pursuant to a
Distribution Agreement with the Trust. Under the terms of this
agreement, the Distributor will pay all expenses related to
selling and distributing the Trust's shares, including
preparing, printing and mailing sales materials. The
Distributor receives a percentage of the offering price of fund
shares sold to unaffiliated parties ranging from 5% on
investment of less that $50,000 to .5% on investments in excess
of $2,500,000.
Other - At April 30, 1998, The Union Central Life Insurance
Company (Union Central) owned 1,301,350 shares of the Fund and
therefore is a controlling person of the Fund and is able to
cast a deciding vote on matters submitted to a vote of the
Fund's shareholders. On April 30, 1998, a pension plan
affiliated with Union Central redeemed 1,797,340 shares,
representing its entire holding in the Fund.
Union Central owns all of the outstanding stock of Carillon
Investments, Inc. and Carillon Advisers, Inc.
Each trustee who is not affiliated with the Adviser receives
fees from the Trust for services as a trustee.
NOTE 3 - SUMMARY OF PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of securities for the year ended April 30,
1998, excluding short-term securities, follow:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
--------- ----------
<S> <C> <C>
Common Stocks $ 7,359,989 $12,755,391
U.S. Government Securities 997,438 12,275,917
Corporate Bonds 3,961,453 528,730
----------- -----------
$12,318,880 $25,560,038
=========== ===========
</TABLE>
NOTE 4 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding
throughout the period.
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998 Year ended October 31
--------------- -------------------------------------
(Unaudited) 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of period $13.42 $13.75 $12.70 $13.01 $13.00 $12.45
------ ------ ------ ------ ------ ------
Investment Operations:
Net investment income .31 .51 .60 .52 .35 .42
Net realized and
unrealized gain .11 .75 1.17 .73 .16 1.27
------ ------ ------ ------ ------ ------
Total from
Investment Operations .42 1.26 1.77 1.25 .51 1.69
------ ------ ------ ------ ------ ------
Distributions:
Net investment income (.24) (.52) (.60) (.51) (.32) (.42)
Net realized gain (1.03) (1.07) (.12) (1.05) (.18) (.72)
------ ------ ------ ------ ------ ------
Total Distributions (1.27) (1.59) (.72) (1.56) (.50) (1.14)
------ ------ ------ ------ ------ ------
Net Asset Value,
End of period $12.57 $13.42 $13.75 $12.70 $13.01 $13.00
====== ====== ====== ====== ====== ======
Total Return<F1> 3.51% 9.94% 14.38% 10.88% 4.56% 14.50%
Ratios/Supplemental Data:
Net Assets,
End of period (000's) $25,506 $47,117 $42,871 $46,644 $41,849 $33,863
Ratio of Expenses to
Average Net Assets 1.00% 1.00% 1.02% 1.01% 1.05% 1.11%
Ratio of Net Investment
Income to Average Net Assets 4.01% 3.95% 4.52% 4.44% 3.89% 3.35%
Portfolio Turnover Rate 75.35% 45.40% 47.43% 42.07% 53.20% 43.35%
Average Commission
Rate Paid<F2> $.0585 $.0529 $.0631
<FN>
<F1> Assumes sales load is not imposed on either initial investment or
reinvestment of distributions.
<F2> Represents the dollar amount of commissions paid on Portfolio
transactions divided by the total number of shares purchased and sold for which
commissions were charged. Disclosure not required for periods prior to fiscal
1996.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000820432
<NAME> CARILLON INVESTMENT TRUST
<SERIES>
<NUMBER> 1
<NAME> CARILLON CAPITAL FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 47,011,794
<INVESTMENTS-AT-VALUE> 47,681,474
<RECEIVABLES> 436,113
<ASSETS-OTHER> 26,625
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 48,144,212
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22,638,040
<TOTAL-LIABILITIES> 22,638,040
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 21,065,464
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 267,992
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,503,036
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 669,680
<NET-ASSETS> 25,506,172
<DIVIDEND-INCOME> 234,531
<INTEREST-INCOME> 925,973
<OTHER-INCOME> 0
<EXPENSES-NET> 231,039
<NET-INVESTMENT-INCOME> 929,465
<REALIZED-GAINS-CURRENT> 3,411,261
<APPREC-INCREASE-CURRENT> (2,686,939)
<NET-CHANGE-FROM-OPS> 1,653,787
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 874,986
<DISTRIBUTIONS-OF-GAINS> 3,605,844
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 573
<NUMBER-OF-SHARES-REDEEMED> 1,849,641
<SHARES-REINVESTED> 366,026
<NET-CHANGE-IN-ASSETS> (21,610,975)
<ACCUMULATED-NII-PRIOR> 221,155
<ACCUMULATED-GAINS-PRIOR> 3,689,977
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 174,933
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 231,039
<AVERAGE-NET-ASSETS> 47,035,339
<PER-SHARE-NAV-BEGIN> 13.42
<PER-SHARE-NII> 0.31
<PER-SHARE-GAIN-APPREC> 0.11
<PER-SHARE-DIVIDEND> 0.24
<PER-SHARE-DISTRIBUTIONS> 1.03
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.57
<EXPENSE-RATIO> .01
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
