HARRIS INSIGHT(REGISTRATION MARK) FUNDS
SEMI-ANNUAL REPORT
JUNE 30, 1997
HARRIS INSIGHT(REGISTRATION MARK) FUNDS
POWERFUL INSIGHT. SOLID INVESTMENTS.(SERVICE MARK)
[LOGO OMITTED]
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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
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HARRIS INSIGHT(REGISTRATION MARK) FUNDS JULY 31, 1997
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DEAR SHAREHOLDER:
We are pleased to present the Harris Insight Funds' Semi-Annual Report for the
six-month period ended June 30, 1997. This report contains a review of the major
influences affecting the domestic equity and fixed income markets during the
first half of the year and highlights our economic outlook for the remainder of
1997. In addition, the report offers brief summaries of each individual Fund's
performance authored by members of the Harris Insight Funds' portfolio
management teams.
Through the first half of 1997, assets of the Harris Insight Family of Funds
have grown by almost $1.2 billion, an increase of 35%, to $4.6 billion.
With the addition of four new Funds, further investment opportunities have been
made available to our shareholders:
Harris Insight Balanced Fund
Harris Insight Convertible Securities Fund
Harris Insight Intermediate Government Bond Fund
Harris Insight Small-Cap Value Fund
The expanded Family of Funds provides shareholders with a wider selection in
matching their financial objectives with those of Harris Insight Funds. No
matter what your financial goals are, a broad range of funds are available to
meet your needs. A wide variety of alternatives also allows you the flexibility
of further diversifying your investments as your needs change.
Our interactive web site at WWW.HARRISINSIGHT.COM provides another beneficial
shareholder service. We continue to enhance and update the site with current
details on the Harris Insight Funds and with information on topics ranging from
investment strategy to the benefits of a diversified portfolio. We strive to
provide a quality site on the World Wide Web that assists investors in making
informed financial decisions. In addition, going forward we intend to
communicate with our shareholders on a more frequent basis, so that you are well
informed not only about what's new within the Harris Insight Funds Family, but
also about how the Funds have been doing from a performance standpoint.
The Harris Insight Funds look forward to continuing their efforts to meet your
investment needs. Should you have any questions regarding this report or any of
the Harris Insight Funds, feel free to call a representative at 800-982-8782. As
always, we thank you for your continued interest in the Harris Insight Funds and
for the opportunity to meet your investment needs.
SINCERELY,
[/S/ RICHARD W. IMGRAM]
RICHARD W. INGRAM
PRESIDENT AND CHIEF FINANCIAL OFFICER
HARRIS INSIGHT FUNDS
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TABLE OF CONTENTS
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Letter to Shareholders ................................................ 1
The Market Environment
1997 Semi Annual Economic Forcast ................................ 3
Fixed Income Markets Review ...................................... 4
Equity Markets Review ............................................ 5
Portfolio Management Review ........................................... 6-9
Statement of Net Assets
Money Market Funds:
Government MoneyMarket Fund .................................... 10
Money Market Fund .............................................. 11-12
Tax-Exempt Money Market Fund ................................... 13-16
Fixed Income Funds:
Short/Intermediate Bond Fund ................................... 17-20
Bond Fund ...................................................... 21-23
Intermediate Government Fund ................................... 24-25
Intermediate Tax-Exempt Bond Fund .............................. 26-28
Tax-Exempt Bond Fund ........................................... 29-31
Convertible Fund ............................................... 32-33
Convertible Securities Fund .................................... 34-36
Equity Funds
Equity Fund .................................................... 37-38
Equity Income Fund ............................................. 39-40
Growth Fund .................................................... 41-42
Small-Cap Opportunity Fund ..................................... 43-46
Small-Cap Value Fund ........................................... 47-48
Index Fund ..................................................... 49-54
Balanced Fund .................................................. 55-58
International Fund ............................................. 59-63
Hemisphere Fund ................................................ 64-66
Statements of Operations .............................................. 68-69
Statements of Changes in Net Assets ................................... 70-73
Statements of Changes -- Capital Stock Activity ....................... 74-79
Financial Highlights .................................................. 80-91
Notes to Financial Statements ......................................... 92-102
2
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THE MARKET ENVIRONMENT
1997 SEMI ANNUAL ECONOMIC FORECAST JULY 31, 1997
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MODERATE GROWTH EXPECTED TO CONTINUE
At this juncture the CONSENSUS of forecasters appears to accept the fact that
the economy will continue to grow at a moderate pace for at least another year.
Neither capacity constraints nor a slowdown in consumer spending appear likely
to derail it. Federal Reserve monetary policy, a key factor in this outlook, is
assumed to have been put on hold and poses no immediate threat to the economic
expansion.
REASONS FOR CAUTION
While we generally agree with this positive outlook, there are a few issues that
continue to trouble us. First, inventory levels rose in the second quarter as
consumers tightened their purse strings. This situation always prompts the
question of whether such a buildup is voluntary or involuntary. The consensus
favors the former view -- we favor the latter.
That both personal bankruptcies have been rising and bank lending standards are
being tightened suggests that high consumer debt levels may be starting to bite.
Also, with producer price inflation virtually non-existent, the carrying costs
of excess inventories have become quite high. As a result, the recent inventory
build may not be as benign as the consensus believes.
Second, the foreign economic outlook may not be as favorable as earlier thought.
European economies (excluding the UK) remain sluggish and much of Asia is
suffering the effect of "boom/bust" economic policies. While Europe's recent
lurch to the political "left" (resulting from troubles associated with meeting
the Maastricht Treaty criteria) may encourage more economic stimulus in an
attempt to jump-start their economies, protectionist trade pressures could also
be on the rise. France's recent actions regarding the Boeing-McDonnell Douglas
merger are a case-in-point. This factor, in conjunction with the stronger U.S.
dollar, could further restrict U.S. export growth.
Third, top line (revenue) growth remains exceedingly difficult to achieve as low
inflation and intense competition continue preventing corporations from raising
prices. Given the continuing trend toward low inflation, this situation seems
likely to persist and maintains the pressure on corporations to continue cutting
costs in order to maintain profit margins.
OUTLOOK GENERALLY OPTIMISTIC
Therefore, while economic growth appears likely to continue for the foreseeable
future and despite the fact that corporate profits are expected to continue
rising in 1998, there is always the possibility that the favorable winds we have
been experiencing could change abruptly. Not the least of these is that low
inflation COULD slip into deflation. While we remain generally optimistic about
domestic economic prospects for the next 12 to 18 months, we also recognize
that, at low levels of "real" and nominal growth, it does not take much of a
change in economic conditions to bring it to a halt.
Given the length of the current expansion and the current euphoria affecting the
financial markets, we continue to maintain a watchful attitude while remaining
generally optimistic about the immediate future.
DAVID L. MEAD
VICE PRESIDENT AND CHIEF INVESTMENT OFFICER
HARRIS TRUST AND SAVINGS BANK
3
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THE MARKET ENVIRONMENT
FIXED INCOME MARKETS REVIEW JULY 31, 1997
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Concern over the Federal Reserve Board's monetary policy dominated the fixed
income markets during the first quarter of 1997. Finally in late March, the
Federal Reserve raised the Federal Funds rate from 5.25% to 5.50% in a
preemptive effort to stifle inflationary pressures resulting from
higher-than-expected growth in the economy. Interest rates consequently rose 40
to 50 basis points across the yield curve.
In spite of negative market sentiment, we did not believe a series of Federal
Reserve credit hikes was in store--as was the case in prior years of Fed
tightening such as 1994. Our outlook proved to be quite accurate. Although first
quarter returns for fixed income investors were disappointing, the fixed income
markets rebounded in the second quarter to post the best performance in over a
year.
A variety of factors contributed to push interest rates lower. To start with, in
contrast to the 5.6% growth rate of the first quarter, growth in the nation's
Gross Domestic Product slowed to an estimated 2% rate in the second quarter.
Inflation numbers continued to be lower-than-expected surprises. For example,
producer prices declined 0.1% in June, the sixth consecutive monthly decline.
Year-over-year producer prices were virtually flat, while prices at the consumer
level increased a scant 2.2%.
U.S. Government bond issuance began to decline, and the reduction in supply
helped provide underpinning for bond prices. A declining Federal Budget deficit,
and proposals for a balanced budget next year provided support to the market.
Finally, uncertainty surrounding European Monetary Union increased the relative
attractiveness of dollar-denominated assets.
On the whole, the bullish news could not get much better for bond investors. The
fixed income markets reflected this enthusiasm, and interest rates declined 30
to 40 basis points across the fixed income curve by the end of June.
MARK E. NEWLIN, C.F.A.
DIRECTOR OF FIXED INCOME MANAGEMENT
HARRIS INVESTMENT MANAGEMENT, INC.
4
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THE MARKET ENVIRONMENT
EQUITY MARKETS REVIEW JULY 31, 1997
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Although the Standard & Poor's 500 Stock Index(REGISTRATION MARK) (S&P 500)
ended the first quarter on the plus side, the slight increase masked the severe
upturn in market volatility during the period. By February 18th, for example,
the market had appreciated 10.2% only to decline approximately 8% to close the
quarter. While Federal Reserve Board Chairman Alan Greenspan's comments in late
December describing the "irrational exuberance" of the markets set the stage for
higher interest rates and a stock market correction, the real catalyst for
market weakness was further evidence of a strong domestic economy. Once again,
fears that growth in the economy would put upward pressure on inflation and
interest rates spooked the markets. Strong retail sales in January and early
February set off an upward spiral in first quarter growth expectations by the
Federal Reserve and most economists. These higher projected growth rates were
reinforced by strong growth in jobs and income and near record highs in consumer
sentiment. These events led the Federal Reserve to raise the discount rate on
March 25th by 25 basis points.
During the second quarter, however, investor sentiment changed. Investors
realized that favorable economic conditions of subdued inflation and moderate
U.S. economic growth were continuing. Given this outlook, many believed the
Federal Reserve's need to tighten rates will not appear on the near-term
horizon.
This change in market sentiment and continued expectations for strong corporate
profits led to a second quarter gain of 17.5% in the S&P 500, the fourth highest
quarterly gain since 1950, and the best since the first quarter of 1987.
Within the S&P 500, the performance of very large capitalization stocks was
impressive. For example, the top 100 stocks outperformed the overall index by a
margin of 3%. Earnings estimates for this group were revised upward last year,
while they fell for the average company. The markets were keenly sensitive to
earnings announcements, but focused on top-line growth as well. Those companies
with superior earnings growth were rewarded with higher stock price valuations.
In addition, mid-way through the second quarter, strength in the market began to
broaden. All of the equity benchmarks were up sizably. Small capitalization
issues also staged a sizable recovery during the period, with the second quarter
performance of this group virtually equal to the previous 12 month's results.
WILLIAM O. LESZINSKE
PRESIDENT AND CHIEF INVESTMENT OFFICER
HARRIS INVESTMENT MANAGEMENT, INC.
5
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PORTFOLIO MANAGEMENT REVIEW
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THE HARRIS INSIGHT GOVERNMENT MONEY MARKET FUND
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Like its other Harris Insight money market fund counterparts, this Fund
benefited from a continuation of the strong performance it experienced in 1996.
The Fund maintained longer-than-average maturities during the first two quarters
of the year, with the longest extension occurring during the month of June. This
extension took advantage of investor sentiment that the Federal Reserve would
raise interest rates at its July meeting. Such sentiment had caused the yield
spread between one-month and one-year securities to widen significantly.
THE HARRIS INSIGHT MONEY MARKET FUND
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The Fund's strong performance from 1996 continued into 1997. The Fund's
excellent showing, particularly among other funds with similar investment
objectives, was responsible for a significant flow of new assets into the Fund.
The Fund attempted to maintain a longer average maturity throughout the first
half of the year. While somewhat of a challenge with the significant cash
inflows, the extension of maturity enabled the Fund to capitalize on the yield
spread between one-month and one-year money market securities.
THE HARRIS INSIGHT TAX-EXEMPT MONEY MARKET FUND
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The Fund carried its strengthening and improved performance from 1996 into the
first quarter of 1997. However, yields on short-term tax-exempts rose in the
first half of the year in direct response to the Federal Reserve raising
short-term interest rates. Fund performance was nonetheless positively affected
by its selective purchases of tax-exempt notes in the six-month to nine-month
portion of the interest rate curve. Overweighting in very liquid paper during
the second quarter also enabled the Fund to take advantage of the beginning of
the tax-exempt note season, a period in which an increase in supply leads to
price pressure on tax-exempt issues.
THE HARRIS INSIGHT SHORT/INTERMEDIATE BOND FUND
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In the second quarter, positive economic fundamentals combined with favorable
supply and demand technicals to spark solid bond market returns. Indeed, with
rates declining on average 30 to 40 basis points across the curve, the bond
market posted its best quarterly performance since fourth quarter 1995. Within
the bond market, the spread sectors (corporate, asset-backed and mortgage-backed
securities) in particular performed well as investors hungered for added yield.
In this environment of falling rates and spread sector outperformance, the
Short/Intermediate Fund's combined strategy of long relative duration and sector
overweighting was a winner.
THE HARRIS INSIGHT BOND FUND
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After disappointing first quarter returns, the bond market rebounded in the
second quarter to post its best quarterly performance in over a year. For the
quarter, rates across the yield curve fell some 40 basis points as moderate
economic activity and virtually no signs of inflation combined to boost the
attractiveness of fixed income securities. In this lower rate environment, the
Fund benefited from its longer maturity bias. Similarly, as lower rates prompted
increased investor demand for spread product (corporate, asset-backed and
mortgage-backed securities), the Fund's heavy weighting in this sector greatly
enhanced returns.
6
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PORTFOLIO MANAGEMENT REVIEW (CONTINUED)
THE HARRIS INSIGHT INTERMEDIATE GOVERNMENT BOND FUND
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The second quarter was the first full quarter this mutual fund has been in
operation.* Investors were convinced the Fed would not take any action regarding
interest rates over the summer months and by the end of June the fixed income
market had sustained a rally in bond prices. Additionally, prices were bolstered
by the Treasury Department's reduction in the size of the weekly Bill and
monthly Note auctions as well as the cancellation of the July and October
ten-year note auctions. This reduced issuance, combined with historically low
volatility levels, produced an environment in which mortgage securities led all
sectors of the fixed income market.
THE HARRIS INSIGHT INTERMEDIATE TAX-EXEMPT BOND FUND
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Since the beginning of the year, the municipal yield curve has flattened to its
lowest slope since early 1995. This has caused shorter maturity bonds to
underperform the longer maturities. In particular, triple B-rated bonds were the
top-performing investment grade sector with high-yield bonds not far behind.
While the Fund was very underweighted in triple A-rated, insured paper, which
underperformed the bond market, the Fund was overweighted in the general
obligation sector, which underperformed the higher yielding revenue sectors.
THE HARRIS INSIGHT TAX-EXEMPT BOND FUND
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Concerns in the municipal bond market that the Federal Reserve Board would
further tighten monetary policy in response to signs of growth in the economy
weighed heavily on the municipal bond market in the first quarter of 1997,
consequently dampening Fund performance. The Fund's emphasis on quality issues
also somewhat limited Fund performance, as lower-quality issues experienced
better relative performance. Nonetheless, tax-exempt bonds outperformed their
taxable counterparts. As inflationary concerns abated during the second quarter,
the fixed income markets rebounded, and the Fund posted positive results for the
first six months of the year.
THE HARRIS INSIGHT CONVERTIBLE FUND
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The Fund's positive performance results can be attributed in part to the strong
performance of its holdings in technology and basic industry issues. In
particular, holdings in Quantum, Altera, Seagate, and Xilinx contributed to
solid fund performance. However, weakness in several technology issues during
the second quarter somewhat limited performance.
THE HARRIS INSIGHT CONVERTIBLE SECURITIES FUND
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The second quarter was the first full quarter this mutual fund has been in
operation.* Like the Convertible Fund, this Fund's positive performance results
can be attributed in part to the strong performance of the portfolio's holdings
in technology and basic industry issues. In particular, holdings in Quantum,
Altera, Seagate, Xilinx, USX and Felcor Suites were strong contributors to fund
performance. However, weakness in several technology issues during the second
quarter somewhat limited upside performance.
*These Funds commenced operations at the end of March, 1997 upon the conversion
of their respective similar collective investment funds.
7
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PORTFOLIO MANAGEMENT REVIEW (CONTINUED)
THE HARRIS INSIGHT EQUITY FUND
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Although the Fund posted impressive double-digit returns for the first half of
the year, it lagged the performance of the Standard & Poor's 500 Stock
Index(REGISTRATION MARK) ("S&P 500"). The investing public's passion for index
mutual funds provided a significant boost to the S&P 500. In addition, the
Equity Fund is underweighted in very large capitalization stocks relative to the
Index. A number of these large cap issues were outperforming the overall market.
Some of these issues, in turn, are hard for value-oriented investment managers
to consider, when they are trading at very high earnings multiples. (Coca-Cola,
trading at 40 times earnings in the first quarter, provides an excellent case in
point). On the other hand, the Fund was supported by its heavy weighting in
financial stocks, as the group responded favorably to an improving bond market
in the second quarter.
THE HARRIS INSIGHT EQUITY INCOME FUND
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Adept issue selection and specific sector exposures helped boost the performance
of the Fund during the first six months of 1997, with the Fund posting very
impressive performance results. In fact, the Fund's strong showing was
responsible for the Institutional Shares of the Fund being cited by The
WallStreet Journal in the second quarter as a top fifteen performer for a one
year period out of 169 funds in the equity income category, according to data
supplied by Lipper Analytical Services, a highly regarded independent mutual
fund research firm. Technology, financials and healthcare led all other sectors,
and while the performance of utilities lagged versus the S&P 500, specific
issues selected for the Fund within that sector contributed positively to the
Fund's performance.
THE HARRIS INSIGHT GROWTH FUND
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Issue selection was the major factor boosting the performance of this Fund in
the first quarter of 1997. In particular, the Fund's portfolio emphasized
companies with price-earnings ratios that are on average somewhat lower than the
universe of large capitalization companies. During the second quarter, the Fund
benefited from having a fully invested position in common stocks as well as
having a favorable balance between large capitalization U.S. multinational and
mid-capitalization companies. In addition, the Fund's relatively heavy exposure
to the health care, financial services, technology, consumer non-durables and
retail distribution sectors enhanced returns.
THE HARRIS INSIGHT SMALL-CAP OPPORTUNITY FUND
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The volatility that had hampered the U.S. equity markets early in 1997
evaporated in the second quarter of the year, with small cap issues posting very
strong results. In fact, for the first time since 1994 small cap stocks (as
measured by the Russell 2000 Index) outperformed large cap stocks. In
particular, small cap technology, producer goods and consumer durables were all
up over 20% during the second quarter.
THE HARRIS INSIGHT SMALL-CAP VALUE FUND
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The second quarter was the first full quarter this mutual fund has been in
operation.* Small cap value stocks outperformed small cap growth stocks in the
first quarter. However, the built-up advantage of value issues narrowed in the
second quarter as value stocks modestly lagged the performance of their growth
stock counterparts. Second quarter performance nonetheless benefited from the
Fund's holdings in financials, services, technology and durables.
*These Funds commenced operations at the end of March, 1997 upon the conversion
of their respective similar collective investment funds.
8
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PORTFOLIO MANAGEMENT REVIEW (CONTINUED)
THE HARRIS INSIGHT INDEX FUND
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Reflecting the strong performance of the overall market, and the Standard
& Poor's 500 Stock Index(REGISTRATION MARK) ("S&P 500"), the Fund posted very
favorable results for the six months ended June 30, 1997. As an unmanaged index,
the S&P 500 is constructed and its returns are calculated without including
operational costs. The Harris Insight Index Fund, an actual investment
portfolio, inescapably incurs some operational and transactional costs in
striving to replicate the Index. Moreover, when the S&P 500 rises by a sizable
percentage, as it did in this year's first half, its performance becomes more
difficult to match. The S&P 500 calculates its return by assuming that dividends
are available for reinvestment immediately on the "Ex date". In actuality,
however, cash dividends are received after a lag of 2-6 weeks, and during this
period the prices of the stocks into which they shall be reinvested are moving
away on the upside. Tracking error, or the percentage by which the Fund did not
exactly match the return of the S&P 500, was -0.14% (0.03% before expenses).
THE HARRIS INSIGHT BALANCED FUND
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The second quarter was the first full quarter this mutual fund has been in
operation.* Although the Fund's investment results were attractive, its focus on
"value" rather than "growth" investment strategies held performance back
somewhat, as growth strategies were clearly in favor. The Fund benefited from
holdings in the technology and financial services sectors, while energy and
utilities lagged the market. The fixed income portfolio of the Fund performed in
line with comparable bond funds, although fixed income returns were quite modest
relative to equity returns. Fortunately, the Balanced Fund was not overweighted
in fixed income securities during the quarter.
THE HARRIS INSIGHT INTERNATIONAL FUND
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The Fund's Performance during the first six months of 1997 closely tracked the
Morgan Stanley Capital International Europe, Australia and Far East (EAFE)
Index. Switzerland, Netherlands and Spain have been the best-performing
countries during the first half of the year. Strong performance of equity
markets in Japan, Spain and Hong Kong during the second quarter also helped
boost the Fund's results. In Japan, for example, the market was especially
strong, with most sectors reporting double-digit gains.
THE HARRIS INSIGHT HEMISPHERE FREE TRADE FUND
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A strong performance by the Mexican market during the first quarter of this year
has provided additional return for the Fund. A rebound by the U.S. and Canadian
markets, coupled with continued strength in Mexico, boosted the Fund in the
second quarter. The Fund's performance in the U.S. portion of the Fund's
portfolio was generated mainly by holdings in the service, technology and
capital goods sectors.
*These Funds commenced operations at the end of March, 1997 upon the conversion
of their respective similar collective investment funds.
9
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HARRIS INSIGHT FUNDS
GOVERNMENT MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
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ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
AGENCY OBLIGATIONS -- 26.1%
FEDERAL FARM CREDIT BANK -- 7.0%
5.620% 09/03/97 $10,000 $ 9,993,582
5.900% 04/01/98 10,000 9,987,065
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19,980,647
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FEDERAL HOME LOAN BANK -- 3.5%
5.490% 11/07/97 10,000 9,998,193
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FEDERAL HOME LOAN MORTGAGE CORPORATION -- 5.2%
5.580% 07/01/97 15,000 14,995,114
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FEDERAL NATIONAL MORTGAGE ASSOCIATION -
NON-MORTGAGE BACKED SECURITIES -- 8.7%
5.520% 10/28/97 5,000 4,999,361
5.450% 11/06/97 10,000 9,996,108
5.890% 05/21/98 10,000 9,992,415
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24,987,884
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STUDENT LOAN MARKETING ASSOCIATION -- 1.7%
5.860% 06/10/98 5,000 4,994,015
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TOTAL AGENCY OBLIGATIONS
(Cost $74,955,853) 74,955,853
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VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER) -- 35.1%
FEDERAL HOME LOAN BANK -- 10.1%
5.790% 07/01/97* 10,000 10,014,459
5.520% 07/28/97* 10,000 9,998,511
5.680% 09/04/97* 9,000 8,997,060
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29,010,030
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FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 12.9%
5.250% 07/01/97* 6,000 6,000,000
5.520% 07/01/97* 11,000 10,996,948
5.520% 07/14/97* 20,000 19,997,143
-----------
36,994,091
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STUDENT LOAN MARKETING ASSOCIATION -- 12.1%
5.260% 07/01/97* 10,000 9,997,654
5.280% 07/01/97* 10,000 10,001,296
5.330% 07/01/97* 15,000 15,000,000
-----------
34,998,950
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TOTAL VARIABLE RATE OBLIGATIONS
(Cost $101,003,071) 101,003,071
-----------
U.S. TREASURY OBLIGATIONS -- 3.5%
U.S. Treasury Notes
(Cost $10,094,813)
7.250% 02/15/98 10,000 10,094,813
-----------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
REPURCHASE AGREEMENTS -- 35.1%
Cantor Fitzgerald & Co., Inc.,
5.950%
Agreement dated 06/30/97,
proceeds at maturity
$51,007,429 (Collateralized by
$50,835,000 FNMA5.39% to
6.05%, due 07/17/97 to
02/01/01. The market value
is $52,018,980.) 07/01/97 $50,999 $ 50,999,000
Lehman Brothers Securities,
6.000%
Agreement dated 06/30/97,
proceeds at maturity
$50,008,333 (Collateralized by
$145,016,000 U.S. Treasury
Strip 0.00%, due 08/15/12 to
11/15/13. The market value
is $51,012,008.) 07/01/97 50,000 50,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $100,999,000) 100,999,000
------------
TOTAL INVESTMENTS -- 99.8%
(Cost $287,052,737) 287,052,737
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.2% 614,155
------------
NET ASSETS -- 100.0%
Applicable to 51,754,793 and
235,912,171 shares outstanding
of Institutional
Class and Class A, respectively,
$.001 par value; 1.5 billion
authorized shares (Note 9) $287,666,892
============
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
EACH FOR INSTITUTIONAL CLASS AND
CLASS A SHARES $1.00
=====
- -------------------
(DAGGER) See Note 2a to the Financial Statements.
(DOUBLE DAGGER) Rate in effect on 06/30/97.
* Date of next interest rate reset.
See Notes to Financial Statements.
10
<PAGE>
HARRIS INSIGHT FUNDS
MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
AGENCY OBLIGATIONS -- 1.7%
Federal Home Loan Bank
5.790% 07/01/97 $ 6,000 $ 6,008,676
5.900% 07/03/97 12,500 12,514,283
------------
TOTAL AGENCY OBLIGATIONS
(Cost $18,522,959) 18,522,959
------------
ASSET BACKED SECURITIES -- 4.5%
Caterpillar Asset Trust
5.723% 05/25/98 15,268 15,268,212
Norwest Automobile Trust 1996-A
5.465% 12/05/97 1,496 1,496,291
World Financial Properties- Steers
5.718% 07/08/97 32,823 32,822,805
------------
TOTAL ASSET BACKED SECURITIES
(Cost $49,587,308) 49,587,308
------------
CERTIFICATES OF DEPOSIT -- 20.7%
Bank of Tokyo-Mitsubishi
5.810% 08/08/97 50,000 50,000,000
Bankers Trust Co. (New York)
6.220% 07/01/97 39,000 38,991,595
Fuji Bank Ltd.
5.820% 08/07/97 50,000 50,000,506
Societe Generale
6.100% 09/12/97 33,000 32,998,423
Societe Generale- Yankee CD
6.100% 03/25/98 15,000 14,996,858
Sumitomo Bank Ltd.
5.820% 07/25/97 40,000 40,000,000
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $226,987,382) 226,987,382
------------
COMMERCIAL PAPER -- 26.6%
Arco Chemical Corp.
5.650% 08/13/97 25,000 24,831,285
5.630% 08/18/97 15,000 14,887,400
Autoliv
5.865% 09/15/97 10,000 9,876,183
CNA Financial
5.830% 08/13/97 10,500 10,426,882
Dayton Hudson Corp.
5.670% 07/07/97 8,000 7,992,440
Enterprise Funding
5.570% 07/03/97 3,553 3,551,901
General Electric Capital Corp.
5.750% 07/01/97 50,000 50,000,000
6.250% 07/01/97 4,000 4,000,000
General Motors Acceptance Corp.
6.250% 07/01/97 37,000 37,000,000
Heller Financial, Inc.
5.680% 07/02/97 30,000 29,995,267
Lockheed Corp.
5.700% 07/03/97 7,000 6,997,783
New Center Asset Trust
6.250% 07/01/97 43,000 43,000,000
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
COMMERCIAL PAPER (CONTINUED)
Public Service Elec & Gas Co.
5.750% 07/09/97 $ 5,500 $ 5,492,972
Tribune Co.
5.630% 08/13/97 27,000 26,818,432
5.630% 08/18/97 7,000 6,947,453
US West Capital Funding Inc.
5.780% 08/20/97 10,000 9,919,722
------------
TOTAL COMMERCIAL PAPER
(Cost $291,737,720) 291,737,720
------------
CORPORATE BONDS -- 15.4%
Abbey National
5.500% 11/21/97 33,000 32,987,520
Associates Corp. of North America
7.750% 11/01/97 4,000 4,021,204
7.300% 03/15/98 3,000 3,020,297
Bankers Trust
5.690% 07/01/97 10,000 9,996,075
Banque National De Paris
5.650% 07/01/97 42,000 41,983,236
Beta Finance
6.125% 09/12/97 22,000 22,000,000
Chase Manhattan Corp.-New York
7.500% 12/01/97 10,000 10,082,197
Chrysler Finance
7.310% 03/24/98 4,705 4,744,382
General Motors Acceptance Corp.
5.875% 03/30/98 8,000 7,977,126
GTE Corp.
8.850% 03/01/98 18,000 18,342,892
Heller Financial
9.375% 03/15/98 9,700 9,908,798
International Lease Finance
5.625% 03/01/98 3,350 3,339,949
------------
TOTAL CORPORATE BONDS
($168,403,676) 168,403,676
------------
VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER) -- 30.2%
Bank One Dayton
5.690% 07/01/97* 32,000 31,985,961
CIT Group Holdings
5.600% 07/01/97* 28,000 27,983,146
Federal National Mortgage Association
5.250% 07/01/97* 10,000 10,000,000
General American Co.
5.890% 07/01/97* 30,000 30,000,000
Household Finance
5.660% 07/01/97* 50,000 50,000,000
Industrial Bank of Korea
6.206% 07/01/97* 49,000 49,000,000
PHH Corp.
5.596% 07/08/97* 35,000 34,997,204
5.688% 07/10/97* 10,000 10,000,000
Racer Series 1996-MM-10-1-Trust
5.813% 07/24/97* 33,000 33,000,000
See Notes to Financial Statements.
11
<PAGE>
HARRIS INSIGHT FUNDS
MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
VARIABLE RATE OBLIGATIONS (CONTINUED)
Salomon Inc.
5.813% 07/20/97* $22,000$ 22,000,000
Sanwa Business Credit
5.820% 07/01/97* 22,000 22,001,124
Student Loan Marketing Association
5.280% 07/01/97* 10,000 10,001,296
-------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $330,968,731) 330,968,731
-------------
SHARES
------
TEMPORARY INVESTMENTS -- 0.1%
Dreyfus Cash Management Plus Fund
Class A Shares 751 751
Goldman Sachs Financial Square
Money Market Portfolio 468,966 468,966
Prime Cash Obligations Fund 461 461
--------------
TOTAL TEMPORARY INVESTMENTS
(Cost $470,178) 470,178
--------------
TOTAL INVESTMENTS -- 99.2%
(Cost $1,086,677,954) 1,086,677,954
--------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.8% 9,083,841
--------------
NET ASSETS -- 100.0%
Applicable to 577,521,969,
and 518,233,808 shares
outstanding of Institutional
Class and Class A, respectively,
$.001 par value; 2.35 billion
authorized shares (Note 9) $1,095,761,795
==============
NET ASSET VALUE, OFFERING PRICE
AND REDEMPTION PRICE PER SHARE
EACH FOR INSTITUTIONAL CLASS AND
CLASS A SHARES $1.00
=====
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
(DOUBLE DAGGER) Rate in effect on 06/30/97.
* Date of next interest rate reset.
See Notes to Financial Statements.
12
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS -- 105.9%
ALASKA -- 5.1%
Anchorage, Alaska Municipal Light & Power
Revenue Series 1996D VR
4.150% 07/02/97 $ 8,000 $ 8,000,000
Valdez, Alaska Marine Terminal (ARCO)
Series C PS
3.750% 07/22/97 6,000 6,000,000
3.800% 09/10/97 6,500 6,500,000
3.650% 09/11/97 7,000 7,000,000
-----------
27,500,000
-----------
ARIZONA -- 5.3%
Apache County, Arizona Industrial
Development Authority Revenue
Bonds (Tucson Electric Power Co.
Springerville)
4.200% 07/07/97 10,750 10,750,000
Apache County, Arizona Industrial
Development Authority Pollution
Control Revenue Bonds VR
4.300% 07/01/97 17,000 17,000,000
Salt River, Arizona TECP
3.650% 08/07/97 1,000 1,000,000
-----------
28,750,000
-----------
CALIFORNIA -- 8.6%
California Community College Financing
Authority Series A TRANS
4.750% 07/02/97 17,105 17,105,394
California Community College Financing
Authority Series A TANS
4.500% 06/30/98 5,425 5,458,852
California TECP
3.750% 07/16/97 5,000 5,000,000
Los Angeles County Series A TANS
4.500% 06/30/98 5,000 5,031,200
Riverside County, California TRANS
4.500% 06/30/98 14,000 14,073,780
-----------
46,669,226
-----------
CONNECTICUT -- 0.4%
Connecticut Special Assessment
Unemployment Compensation
Advance Fund (Connecticut
Unemployment Project)
Series 1993 C MB
3.900% 07/01/97 2,000 2,000,000
-----------
DISTRICT OF COLUMBIA -- 6.6%
District of Columbia TRANS
4.500% 09/30/97 9,000 9,011,466
District of Columbia Loans Revenue
Series 1985 PS
4.100% 07/01/97 3,000 3,002,910
4.330% 07/01/97 1,620 1,620,000
District of Columbia Notes
3.980% 07/01/97 9,000 9,000,000
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
DISTRICT OF COLUMBIA (CONTINUED)
District of Columbia Revenue Bonds,
American Association for the
Advancement of Science VR
4.150% 07/01/97 $13,100 $ 13,100,000
-----------
35,734,376
-----------
FLORIDA -- 10.1%
Dade County, Florida, Industrial
Development Authority Revenue
Refunding Bonds (Florida Power &
Light Company) VR
4.050% 07/01/97 5,000 5,000,000
Dade County, Florida, Special Obligation
Revenue Bonds Capital Asset
Acquisition Series 1990 VR
4.450% 07/07/97 6,060 6,060,000
Gainsville, Florida TECP
3.700% 07/10/97 6,443 6,443,000
Hillsborough County, Florida
General Obligation
6.800% 08/15/97 1,710 1,718,196
Jacksonville, Florida, Electric Authority
Series D3
3.800% 09/17/97 5,000 5,000,000
Orange County, Florida Notes
3.750% 08/05/97 2,950 2,950,000
Palm Beach County, Florida HFA Revenue
Series 1985 PS
3.700% 07/17/97 8,500 8,500,000
Sunshine State GFC Revenue Series 1986
3.500% 07/15/97 8,000 8,000,000
3.700% 07/18/97 4,065 4,065,000
Sunshine State GFC TECP
3.700% 08/20/97 7,000 7,000,000
-----------
54,736,196
-----------
GEORGIA -- 3.3%
Burke County, Georgia, Development
Authority Pollution Control Revenue
Bonds (Georgia Power & Light
Company Vogtle Project)
Series 1994-3rd VR
4.100% 07/01/97 13,000 13,000,000
Fulton County, Georgia TANS
4.250% 12/31/97 5,000 5,012,669
-----------
18,012,669
-----------
IDAHO -- 1.4%
State of Idaho TANS
4.625% 6/30/98 7,500 7,553,625
-----------
ILLINOIS -- 5.0%
Chicago Metropolitan Water Reclamation
Revenue Refunding Bonds
4.700% 12/01/97 2,000 2,007,540
Chicago, Illinois General Obligation Notes
3.550% 10/31/97 8,000 8,000,000
See Notes to Financial Statements.
13
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS (CONTINUED)
Cook County, Illinois Revenue Bonds
(Catholic Charities) VR
4.150% 07/07/97 $ 8,300 $ 8,300,000
Kane, Cook & Dupage Counties, Illinois
School District #46 Elgin TANS
4.500% 09/30/97 5,000 5,006,724
Kane McHenry, Cook & Dekalb Counties
Illinois School District TANS
4.800% 08/15/97 3,800 3,803,617
-----------
27,117,881
-----------
INDIANA -- 4.0%
Rockport, Indiana PCR Indiana &
Michigan Electric Series 1985-A
4.200% 07/01/97 3,845 3,845,000
Rockport, Indiana Pollution Control
Revenue Refunding Bonds
(AEP Generating Co. Project)
4.050% 07/07/97 6,000 6,000,000
Rockport, Indiana Pollution Control
Revenue Refunding Bonds (Indiana
Michigan Power Co. Project)
4.150% 07/01/97 12,000 12,000,000
-----------
21,845,000
-----------
IOWA -- 0.3%
Polk County, Iowa, Hospital Equipment
Authority VR
4.150% 07/07/97 1,830 1,830,000
-----------
KANSAS -- 4.5%
Burlington, Kansas Pollution Control
Revenue Bonds (Kansas City Power &
Light) Series 1985B PS
3.650% 07/23/97 6,400 6,400,000
3.800% 08/13/97 2,500 2,500,000
Burlington, Kansas Pollution Control
Revenue Bonds Series 1987A PS
3.750% 08/11/97 3,200 3,200,000
Kansas State Department of Transportation
Highway Revenue Bonds Series B VR
4.100% 07/07/97 6,400 6,400,000
Wichita, Kansas General Obligation Notes
Series 1990
4.250% 08/28/97 6,000 6,006,597
-----------
24,506,597
-----------
KENTUCKY -- 4.0%
Clark County, Kentucky PCR Series 1984
3.750% 10/15/97 3,000 3,000,000
Kentucky Hospital Revenue Authority
Series 1997 VR
4.100% 07/02/97 9,600 9,600,000
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
KENTUCKY (CONTINUED)
Kentucky Correctional Facility Construction
Authority Revenue Bonds
7.000% 11/01/97 $ 8,805 $ 8,990,647
-----------
21,590,647
-----------
LOUISIANA -- 7.2%
Caddo Parish Industrial Development
Board Atlas Project RB
3.950% 07/07/97 5,500 5,500,000
Jefferson Parish Hospital Service District
No.2 (East Jefferson General
Hospital) VR
4.150% 07/02/97 8,600 8,600,000
Lake Charles Harbor (Conoco Project)
Dupont Series 1984
4.100% 07/01/97 3,900 3,900,000
Louisiana State Recovery District
Sales Tax Revenue
5.500% 07/01/97 1,000 1,000,000
Parish of West Baton Rouge, Louisiana
3.750% 07/16/97 4,000 4,000,000
West Baton Rouge, Louisiana, Industrial
District #3 Revenue Bonds (Dow
Chemical Co.) Series B VR
4.150% 07/01/97 16,000 16,000,000
-----------
39,000,000
-----------
MARYLAND -- 1.8%
Maryland Health & Higher Education TECP
3.800% 11/12/97 7,950 7,950,000
Montgomery County, Maryland BANS
3.600% 08/12/97 2,000 2,000,000
-----------
9,950,000
-----------
MICHIGAN -- 2.2%
Delta County, Michigan Economic
Development Corp. Environmental
Revenue VR
4.100% 07/01/97 6,200 6,200,000
Michigan Municipal Bond Authority
Series A Notes
4.500% 07/03/97 5,000 5,000,251
Strategic Fund Consumer Power
Company PCR Series 1988A VR
4.050% 07/01/97 1,000 1,000,000
-----------
12,200,251
-----------
MINNESOTA -- 1.7%
Rochester, Minnesota, Health Care
Facilities Revenue Bonds (Mayo
Foundation/Mayo Medical Center)
Series C PS
3.750% 10/22/97 5,000 5,000,000
See Notes to Financial Statements.
14
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
MINNESOTA (CONTINUED)
Rochester, Minnesota, Health Care
Facilities Revenue Bonds (Mayo
Foundation/Mayo Medical Center)
Series F PS
3.700% 07/08/97 $ 4,000 $ 4,000,000
-----------
9,000,000
-----------
MISSOURI -- 0.5%
Missouri Health and Education Facility
Authority
4.500% 09/08/97 2,500 2,502,732
-----------
NEBRASKA -- 1.2%
Nebraska Public Power Development
Electric System
3.750% 07/21/97 6,715 6,715,000
-----------
NEVADA -- 1.9%
Clark County Nevada Pollution Control
Revenue Nevada Power Co.
4.150% 07/07/97 10,400 10,400,000
-----------
NEW YORK -- 3.4%
New York City General Obligation Bonds
Series 1994B VR
5.500% 07/01/97 5,200 5,200,000
New York City Municipal Finance Authority
Water and Sewer System
Series 1995A VR
5.500% 07/01/97 2,900 2,900,000
New York City Series 1993
Subseries A-10 VR
5.500% 07/01/97 1,500 1,500,000
New York State Energy Research and
Development Authority Pollution
Control Revenue Bonds (Niagara
Mohawk Power Project)
Series 1985B VR
4.100% 07/01/97 9,000 9,000,000
-----------
18,600,000
-----------
NORTH CAROLINA -- 0.9%
North Carolina Eastern Municipal Power
3.750% 09/10/97 5,000 5,000,000
-----------
OHIO -- 4.0%
Ohio Air Quality Development Authority
Revenue Bonds (The Cincinnati
Gas & Electric Project)
4.000% 07/01/97 1,200 1,200,000
Ohio Air Quality Development Authority
Revenue Bonds VR
5.500% 07/01/97 1,500 1,500,000
Ohio State Building Authority
Facilities 1997A
4.000% 10/01/97 3,905 3,909,338
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Ohio State Public Facility Series IIA
4.500% 05/01/98 $15,000 $ 15,066,392
-----------
21,675,730
-----------
OKLAHOMA -- 0.4%
Tulsa, Oklahoma Industrial Authority
Revenue Bonds (University of Tulsa)
Series B VR
3.550% 07/02/97 2,000 2,000,000
-----------
OREGON -- 0.6%
Port of Saint Helens, Oregon Series B VR
4.050% 07/01/97 3,100 3,100,000
-----------
TENNESSEE -- 2.9%
Metropolitan Government Nashville,
Davidson County Tennessee Revenue
Series 1985A PS
3.650% 01/15/98 1,000 1,000,000
State of Tennessee BANS Series A VR
4.250% 07/01/97 15,000 15,000,000
-----------
16,000,000
-----------
TEXAS -- 8.9%
Brazos River Authority (Monsanto Co.
Project), Texas Pollution Control
Revenue, VR
4.150% 07/07/97 2,200 2,200,000
Gulf Coast Waste Disposal Authority,
Pollution Control Revenue Bonds,
(Exxon Project)
4.000% 07/01/97 2,700 2,700,000
San Antonio Texas Electric & Gas System
3.750% 08/06/97 5,000 5,000,000
State of Texas TRANS
4.750% 08/29/97 14,825 14,849,482
Texas Association of School Boards TANS
4.750% 08/29/97 5,000 5,007,358
Texas Higher Education Authority
Facilities Revenue Series 85B
4.150% 07/02/97 3,025 3,025,000
Texas Small Business IDC Series 1986
3.950% 06/30/97 6,500 6,500,000
Texas State PFA Series B
8.000% 10/01/97 1,000 1,010,442
University of Texas Notes
3.800% 09/18/97 8,000 8,000,000
-----------
48,292,282
-----------
UTAH -- 1.3%
Intermountain Power Agency Revenue
Bonds Series 1985
3.450% 07/14/97 7,100 7,100,000
-----------
See Notes to Financial Statements.
15
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA -- 2.5%
Louisa IDA Pollution Control Revenue
(Virginia Electric & Power Co.)
Series 1985 VR
3.800% 08/18/97 $ 9,225 $ 9,225,000
Peninsula Port Authority of Virginia Coal
Terminal (Dominion Terminal
Associates Project) Series 1987D VR
4.100% 07/01/97 4,405 4,405,000
------------
13,630,000
------------
WASHINGTON -- 2.7%
Washington Public Power Supply System
Project No. 1, Refunding Electric
Revenue Bonds VR
4.000% 07/07/97 5,800 5,800,000
Washington State Public Power Supply VR
4.100% 07/01/97 8,700 8,700,000
------------
14,500,000
------------
WISCONSIN -- 0.7%
Delavan Darien School District BANS
4.150% 04/15/98 2,000 2,003,520
Elkhorn Area School District BANS
4.250% 07/01/97 2,000 2,003,676
------------
4,007,196
------------
WYOMING -- 2.5%
Gillette County, Wyoming Pollution Control
Revenue Bond (Pacificorp Project) PS
3.650% 07/11/97 4,000 4,000,000
Lincoln County, Wyoming, Pollution
Control Revenue Bonds (Pacificorp) PS
3.700% 07/09/97 4,500 4,500,000
Lincoln County, Wyoming, Pollution
Control Revenue Bonds Project A VR
4.100% 07/01/97 2,900 2,900,000
Lincoln County, Wyoming, Pollution
Control Revenue, Exxon VR
4.100% 07/01/97 2,400 2,400,000
------------
13,800,000
------------
TOTAL MUNICIPAL BONDS
(Cost $575,319,408) 575,319,408
------------
SHARES VALUE(DAGGER)
------ -------------
TEMPORARY INVESTMENTS -- 0.9%
Federated Tax-Free Obligation Fund 4,776,331 $ 4,776,331
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 101,214 101,214
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $4,877,545) 4,877,545
------------
TOTAL INVESTMENTS -- 106.8%
(Cost $580,196,953) 580,196,953
------------
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (6.8%)
Payable for Investments Purchased (39,123,887)
Other Assets and Liabilities,Net 2,389,607
------------
Total Liabilities in Excess of
Other Assets (36,734,280)
------------
NET ASSETS -- 100.0%
Applicable to 366,189,460 and 177,270,751
shares outstanding of Institutional Class
and Class A, respectively, $.001 par value;
1.5 billion authorized shares (Note 9) $543,462,673
============
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE FOR
INSTITUTIONAL CLASS AND CLASS A SHARES $1.00
=====
- ----------------
(DAGGER) See Note 2a to the Financial Statements.
PS -- Security with a "put" feature; date shown is when security may be put back
for redemption."
VR -- Variable rate demand note; interest rate in effect on 06/30/97. Maturity
date is the later of the next interest rate change or exercise of the
demand feature.
BANS -- Bond Anticipation Note.
TANS -- Tax Anticipation Note.
TECP -- Tax Exempt Commercial Paper.
TRANS -- Tax Revenue Anticipation Note.
See Notes to Financial Statements.
16
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
AGENCY OBLIGATIONS -- 5.1%
AID - Israel Guaranteed Notes
6.050% 08/15/00 $ 520 $ 514,150
Federal Home Loan Bank
7.360% 07/01/04 1,000 1,039,790
Federal Home Loan Mortgage Corp.
7.980% 09/08/04 5,000 5,009,350
7.100% 04/10/07 2,500 2,562,050
Federal National Mortgage Association
8.400% 10/25/04 5,000 5,179,899
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $14,098,804) 14,305,239
-----------
ASSET BACKED SECURITIES -- 21.1%
AFC Home Equity Loan Trust
Series 1991-4, Class A
7.750% 02/15/06 101 103,003
Banco Nacional De Mexico, S.A
Series 1996-A, Class A1
6.250% 12/01/03 5,000 4,892,969
Bridgestone/Firestone Master Trust
Series 1996-1, Class A
6.170% 07/01/03 4,000 3,962,721
Capita Equipment Receivables Trust
Series 1996-1, Class A4
6.280% 06/15/00 3,500 3,499,718
Case Equipment Loan Trust
Series 1997-A, Class B
6.700% 03/15/04 750 750,810
Chemical Master Credit Card Trust I
Series 1996-1, Class A
5.550% 09/15/03 3,000 2,908,037
Citibank Credit Card Master Trust I
Series 1997-2, Class B
6.700% 02/15/02 5,000 4,973,336
First Bankcard Master Credit Card Trust
Private Placement Series 1997-1, Class A
5.858% 08/15/00 3,000 3,000,000
First Deposit Master Trust
Series 1995-2, Class A
6.050% 08/15/02 5,000 5,011,188
Fleet Financial Home Equity
Series 1991-1, Class A
8.450% 04/15/06 43 43,077
Ford Credit Auto Loan Master Trust
Series 1995-1, Class A
6.500% 08/15/02 1,000 999,481
Goldome Credit Corporation Home Equity
Trust Series 1990-1, Class A
10.000% 07/15/05 190 195,255
Green Tree Financial Corporation
Series 1997-4, Class A5
6.880% 02/15/29 5,365 5,347,926
Merrill Lynch Home Equity Loan
Series 1994-1, Class A1
6.168% 07/15/22 498 496,624
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
ASSET BACKED SECURITIES (CONTINUED)
Metris Master Trust Series 1997-1, Class A
6.870% 10/20/05 $ 930 $ 941,895
Mortgage Capital Funding Series 1996
7.008% 12/21/26 2,450 2,436,219
Nissan Auto Receivable Grantor Trust
Series 1994-A, Class A
6.450% 09/15/99 160 160,614
Premier Auto Trust Series 1995-4,
Class CTFS
6.200% 09/06/00 4,662 4,643,465
Premier Auto Trust Series 1996,
Class CTFS
6.350% 07/06/00 4,000 3,996,497
Prime Credit Card Master Trust
Series 1995-1, Class A
6.750% 11/15/05 1,820 1,828,654
Standard Credit Card Master Trust
Series 1995-3, Class A
7.850% 02/07/02 2,000 2,063,315
The Money Store Home Equity Trust
Series 1994-B, Class A3
7.100% 11/15/16 2,530 2,547,569
WFS Financial Owner Trust
Series 1996-A, Class A3
6.050% 06/01/00 4,000 4,011,456
-----------
TOTAL ASSET BACKED SECURITIES
(Cost $59,052,549) 58,813,829
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 16.0%
Asset Securitization Corp.
Series 1997-D4 IO
1.002% 04/14/29 68,838 5,270,412
Chase Mortgage Finance Corp.
Series 1993-0, Class A5
6.600% 12/25/09 3,940 3,880,758
DLJ Mortgage Acceptance Corp.
Series 1995-Q1, Class A1-S IO
1.974% 03/25/25 470 95,415
DLJ Mortgage Acceptance Corp.
Series 1996-M, Class 1
8.975% 11/28/11 7,110 7,280,203
Federal Home Loan Mortgage
Corp. Series 1571, Class BA PO
8.277% 04/15/19 510 477,886
Federal Home Loan Mortgage Corp.
Series 1758, Class K
5.500% 11/15/02 750 748,453
Federal National Mortgage Association
G-18
8.750% 06/25/21 3,489 3,636,280
Federal National Mortgage Association
Series 1997-20 IO
1.840% 01/25/25 41,245 2,511,792
Federal National Mortgage Association
Series 1990-32, Class E
9.000% 08/01/01 6,650 6,890,730
See Notes to Financial Statements.
17
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Series 1993-146, Class B PO
8.383% 05/25/23 $ 647 $ 626,007
Federal National Mortgage Association
Series 1994-85, Class E
6.000% 06/01/00 1,200 1,181,979
Federal National Mortgage Association
Series 1996-M4, Class A
7.750% 01/15/30 6,584 6,694,869
GE Capital Mortgage Services, Inc.
Series 1994-12, Class A8
6.000% 03/25/09 5,128 4,967,216
Prudential Home Mortgage
Securities 1992-6, Class A3
7.000% 04/25/99 119 119,510
Ryland Acceptance Corporation
Series 74, Class D
7.500% 08/01/13 245 243,913
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $44,565,030) 44,625,423
-----------
MORTGAGE BACKED SECURITIES -- 7.0%
Federal Home Loan Mortgage Corp. Gold
7.500% 01/15/27 960 975,600
Federal National Mortgage Association
Pool # 303724
6.000% 01/01/11 7,444 7,248,681
Federal National Mortgage Association
Pool # 305189
9.000% 01/01/25 50 52,636
Federal National Mortgage Association
Pool # 305555
9.000% 01/01/25 444 468,507
Federal National Mortgage Association
Pool # 306031
9.000% 02/01/25 1,035 1,091,561
Federal National Mortgage Association
Pool # 306674
9.000% 03/01/25 335 353,526
Federal National Mortgage Association
Pool # 317306
9.000% 07/01/25 363 383,362
Federal National Mortgage Association
Pool # 338001
9.000% 10/01/25 30 31,969
Government National Mortgage
Association Pool # 333668
7.000% 07/15/23 714 705,065
Government National Mortgage
Association Pool # 326150
7.000% 09/15/23 255 251,891
Government National Mortgage
Association Pool # 345039
7.000% 09/15/23 780 770,269
Government National Mortgage
Association Pool # 345536
7.000% 01/15/24 511 504,636
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
MORTGAGE BACKED SECURITIES (CONTINUED)
Government National Mortgage
Association Pool # 351638
7.000% 01/15/24 $ 696 $ 687,400
Government National Mortgage
Association Pool # 377553
7.000% 07/15/25 677 665,443
Government National Mortgage
Association Pool # 383330
7.000% 12/01/23 956 939,933
Government National Mortgage
Association Pool # 391901
7.000% 12/01/23 804 790,164
Government National Mortgage
Association Pool # 397755
7.000% 05/15/24 678 669,480
Government National Mortgage
Association Pool # 406568
7.000% 07/15/25 959 942,573
Government National Mortgage
Association Pool # 407660
7.000% 12/01/23 803 789,664
Government National Mortgage
Association Pool # 780023
7.000% 09/15/24 837 825,529
Government National Mortgage
Association Pool # 8747
6.875% 01/15/25 228 233,147
-----------
TOTAL MORTGAGE BACKED SECURITIES
(Cost $19,173,430) 19,381,036
-----------
CORPORATE BONDS -- 26.8%
ELECTRIC -- 2.3%
Commonwealth Edison Co.
6.000% 03/15/98 715 715,000
Consolidated Edison
6.625% 07/01/05 2,150 2,107,000
National Power Co. PLC
6.250% 12/01/03 3,240 3,101,652
Pacific Gas & Electric
7.875% 03/01/02 500 521,250
-----------
6,444,902
-----------
FINANCE - BANK -- 3.4%
First Chicago NBD Bancorp
7.250% 08/15/04 3,320 3,365,650
First Chicago NBD Institutional
7.950% 12/01/26 875 853,125
First Union Capital II
7.850% 01/01/27 1,725 1,681,875
National City Corp.
6.750% 06/01/99 3,600 3,620,880
-----------
9,521,530
-----------
See Notes to Financial Statements.
18
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
CORPORATE BONDS (CONTINUED)
FINANCE - NON-BANK -- 11.8%
American Express Credit Corporation
6.125% 11/15/01 $ 440 $ 430,650
Associates Corporation
5.750% 10/15/03 190 180,263
Beneficial Corporation
8.400% 05/15/08 20 21,825
Beneficial Corporation, MTN
9.130% 07/25/01 1,000 1,081,250
Caterpillar Financial Services Corp., MTN
8.290% 03/04/99 1,000 1,031,250
Ford Motor Credit Euro Bond
6.375% 04/03/00 3,485 3,455,238
General Motors Acceptance Corp.
6.625% 05/15/98 3,500 3,522,260
Hartford Life
7.100% 06/15/07 3,915 3,905,213
Household Finance Corporation
8.550% 10/15/04 3,000 3,090,000
Lehman Brothers Holdings
7.375% 05/15/04 4,540 4,596,750
Merrill Lynch & Co., Inc.
6.500% 04/01/01 3,940 3,910,450
Morgan Stanley Group
6.875% 03/01/07 2,300 2,271,250
Racers 1997
7.800% 02/01/17 1,115 1,130,900
Sears Overseas Financial
0.000% 07/12/98 3,000 2,818,260
Sears Roebuck Acceptance Corp.
7.010% 09/19/02 1,400 1,412,250
-----------
32,857,809
-----------
INDUSTRIAL -- 6.9%
Browning - Ferris Industries Inc.
6.100% 01/15/03 1,000 957,500
Comdisco Inc.
5.750% 08/22/97 4,000 4,003,960
E.I. DuPont deNemours & Co.
7.500% 06/11/99 440 448,800
Ford Motor Co.
9.000% 09/15/01 4,000 4,320,000
H.J. Heinz Co.
7.500% 04/26/00 1,000 1,023,750
Lockheed Martin Corp.
6.550% 05/15/99 4,200 4,221,000
Sears, Roebuck Co., MTN
8.390% 02/14/02 800 848,000
Walt Disney Co.
6.375% 03/30/01 2,785 2,764,112
WMX Technologies, Inc.
6.250% 10/15/00 700 693,000
-----------
19,280,122
-----------
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
CORPORATE BONDS (CONTINUED)
OIL -- 0.1%
Atlantic Richfield
9.125% 03/01/11 $ 100 $ 116,625
-----------
TRANSPORTATION -- 2.3%
CSX Corp.
7.250% 05/01/04 4,730 4,789,125
Ryder Systems, Inc.
5.770% 04/21/98 1,475 1,471,209
-----------
6,260,334
-----------
TOTAL CORPORATE BONDS
(Cost $73,863,839) 74,481,322
-----------
EURO BONDS -- 0.3%
State Bank of New South Wales
(Cost $801,175)
10.375% 04/26/99 750 798,750
-----------
INTERNATIONAL BONDS -- 1.6%
Telstra Corp. Ltd. Euro Bond
(Cost $4,576,058)
6.500% 11/28/05 4,625 4,527,875
-----------
SUPRANATIONAL BONDS -- 1.1%
African Development Bank
(Cost $3,118,334)
7.750% 12/15/01 3,000 3,127,500
-----------
YANKEE BONDS -- 3.4%
Export-Import Bank Korea
6.500% 11/15/06 2,185 2,094,869
Glaxo Wellcome PLC Euro Bond
6.125% 01/25/06 3,655 3,476,819
Korea Development Bank
5.875% 12/01/98 4,000 3,985,000
-----------
TOTAL YANKEE BONDS
(Cost $9,538,199) 9,556,688
-----------
COMMERCIAL PAPER -- 3.8%
Autoliv
5.820% 07/08/97 5,500 5,493,776
5.900% 07/09/97 5,000 4,993,444
-----------
TOTAL COMMERCIAL PAPER
(Cost $10,487,220) 10,487,220
-----------
See Notes to Financial Statements.
19
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
U.S. TREASURY OBLIGATIONS -- 11.2%
U.S. Treasury Bonds
12.500% 08/15/14 $ 2,655 $ 3,901,523
------------
U.S. Treasury Notes
8.875% 11/15/98 900 933,831
7.500% 10/31/99 1,515 1,558,208
7.875% 11/15/99 5,000 5,187,800
7.750% 12/31/99 2,850 2,951,945
6.250% 02/15/03 11,290 11,209,953
5.750% 08/15/03 1,000 965,970
7.000% 07/15/06 4,400 4,527,204
------------
27,334,911
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $30,975,006) 31,236,434
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 1.6%
Goldman Sachs Financial Square
Money Market Portfolio 4,327,507 4,327,507
Goldman Sachs Institutional Liquid
Assets Money Market Portfolio 1,066 1,066
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $4,328,573) 4,328,573
------------
TOTAL INVESTMENTS -- 99.0%
(Cost $274,578,217) 275,669,889
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES-- 1.0% 2,792,810
------------
NET ASSETS -- 100.0%
Applicable to 27,070,105 and 469,704
shares outstanding of Institutional
Class and Class A, respectively,
$.001 par value; 200,000,000
authorized shares (Note 9) $278,462,699
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($273,713,439/27,070,105) $10.11
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE
($4,749,260/469,704) $10.11
======
MAXIMUM PUBLIC OFFERING PRICE
PER CLASS A SHARE (NOTE 6) $10.59
======
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
(DOUBLE DAGGER) Maturity dates for asset-backed securities, including
collateralized mortgage obligations, represent weighted average maturities of
the underlying securities at June 30, 1997.
MTN -- Medium Term Note
IO -- Interest Only security
PO -- Principal Only security
See Notes to Financial Statements.
20
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
AGENCY OBLIGATIONS -- 1.4%
Federal Home Loan Bank
Series GG-00, Class 1
5.030% 07/28/00 $ 500 $ 480,315
Federal Home Loan Mortgage Corp.
7.100% 04/10/07 1,000 1,024,820
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $1,511,314) 1,505,135
-----------
ASSET BACKED SECURITIES -- 15.5%
Banco Nacional De Mexico, S.A
Series 1996-A, Class A1
6.250% 12/01/03 2,000 1,957,187
Bridgestone/Firestone Master Trust
Series 1996-1, Class A
6.170% 07/01/03 800 792,544
Capita Equipment Receivables Trust
Series 1996-1, Class A4
6.280% 06/15/00 500 499,960
Case Equipment Loan Trust
Series 1997-A, Class B
6.700% 03/15/04 750 750,810
Chase Commercial Mortgage Securities
Corp. Series 1997-1, Class A-1
7.270% 07/19/04 2,250 2,280,667
Chemical Master Credit Card Trust
Series 1995-2, Class A
6.230% 06/15/03 610 606,762
Citibank Credit Card Master Trust I
Series 1997-2, Class B
6.700% 02/15/04 1,000 994,667
First Bankcard Credit Card Master Trust
Private Placement Series 1997-1,
Class A
5.858% 08/15/00 1,000 1,000,000
Green Tree Financial Corp. Series 1997-4,
Class A5
6.880% 01/01/01 2,000 1,990,000
Household Credit Card Master Trust I
Series 1995-1, Class A
5.858% 12/15/02 780 781,404
Metris Master Trust Series 1997-1, Class A
6.870% 04/20/02 150 150,937
Prime Credit Card Master Trust
Series 1995-1, Class A
6.750% 11/15/05 2,350 2,361,174
Standard Credit Card Master Trust
Series 1994-3, Class B
7.000% 04/07/01 400 403,339
Standard Credit Card Master Trust
Series 1995-3, Class A
7.850% 02/07/02 250 257,990
Team Fleet Financing Corp. Series 1997-1,
Class A
7.350% 05/15/03 1,250 1,267,969
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
ASSET BACKED SECURITIES (CONTINUED)
The Money Store Home Equity Trust
Series 1994-B, Class A3
7.100% 11/15/16 $ 903 $ 909,847
-----------
TOTAL ASSET BACKED SECURITIES
(Cost $16,972,042) 17,005,257
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 23.4%
American Southwest Financial Securities
Corp. Series 1996-FH, Class A1
6.675% 11/25/38 915 915,152
Asset Securitization Corp.
Series 1997-D4 IO
0.999% 04/14/29 16,451 1,259,552
Chase Mortgage Finance Corp.
Series 1993-0, Class A5
6.600% 12/25/09 985 970,189
Countrywide Funding Corp.
Series 1994-11, Class A12
7.069% 05/25/24 595 561,430
Countrywide Funding Corp.
Series 1994-3, Class A10
6.750% 03/25/24 746 717,589
DLJ Mortgage Acceptance Corp.
Series 1996-M, Class 1
8.830% 11/28/11 948 970,694
Federal Home Loan Mortgage Corp.
Series 1875, Class P PO
6.661% 09/15/03 1,954 1,492,039
Federal Home Loan Mortgage Corp.
Series 1865, Class PE
7.000% 07/15/26 750 721,988
Federal Home Loan Mortgage Corp.
Series 1871, Class H
7.000% 11/15/12 1,000 989,973
Federal Home Loan Mortgage Corp.
Series 1928, Class CA
7.000% 12/15/24 1,500 1,454,118
Federal National Mortgage Association
Series 110, Class 2 IO
9.000% 11/25/19 2,951 951,617
Federal National Mortgage Association
Series 145, Class 1 PO
6.483% 06/25/22 2,951 2,199,202
Federal National Mortgage Association
Series 1994-5, Class Z
6.500% 02/25/24 1,235 1,080,820
Federal National Mortgage Association
Series G-18, Class Z
8.750% 06/25/21 2,700 2,813,476
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 20,505 1,248,744
Federal National Mortgage Association
Series 1992-216, Class ZB
7.000% 12/25/22 534 499,172
See Notes to Financial Statements.
21
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Series 1994-30, Class H
6.250% 11/25/22 $ 2,550 $ 2,453,558
Federal National Mortgage Association
Series 1996-53, Class PE
6.500% 11/18/10 2,300 2,254,783
GE Capital Mortgage Services, Inc.
Series 1994-6, Class A9
6.500% 09/25/22 2,309 2,096,076
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $25,525,006) 25,650,172
-----------
MORTGAGE BACKED SECURITIES -- 8.4%
Federal National Mortgage Association
7.000% 01/15/12 1,945 1,941,961
7.500% 01/15/27 4,300 4,313,437
8.000% 01/15/27 1,400 1,432,812
Federal National Mortgage Association
Pool# 305555
9.000% 01/01/25 454 478,731
Federal National Mortgage Association
Pool# 359740
7.000% 10/01/26 332 326,057
Federal National Mortgage Association
Pool# 364248
7.000% 01/01/27 340 333,347
Federal National Mortgage Association
Pool# 364731
7.000% 12/01/26 333 326,277
-----------
TOTAL MORTGAGE BACKED SECURITIES
(Cost $9,108,114) 9,152,622
-----------
CORPORATE BONDS -- 18.9%
ELECTRIC -- 1.5%
National Power Co. PLC
6.250% 12/01/03 720 689,256
Public Service Electric & Gas
6.500% 05/01/04 1,000 976,250
-----------
1,665,506
-----------
FINANCE - BANK -- 1.6%
First Chicago NBD Institutional
7.950% 12/01/26 400 390,000
First Union Capital II
7.850% 01/01/27 400 390,000
Mellon Financial
6.300% 06/01/00 500 496,250
Wachovia Bank-NC Euro Bond
7.000% 10/17/08 500 496,000
-----------
1,772,250
-----------
FINANCE - NON-BANK -- 7.3%
Commercial Credit
7.750% 03/01/05 210 218,662
Ford Motor Credit Euro Bond
6.375% 04/03/00 700 701,393
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
CORPORATE BONDS (CONTINUED)
FINANCE - NON-BANK (CONTINUED)
Hartford Life
7.100% 06/15/07 $ 2,090 $ 2,084,775
Lehman Brothers Holdings
8.800% 03/01/15 630 700,875
Merrill Lynch & Co., Inc.
6.500% 04/01/01 200 198,500
Morgan Stanley Group
6.875% 03/01/07 500 493,750
PaineWebber Group, Inc.
6.750% 02/01/06 1,000 965,000
Racers 1997
7.800% 02/01/17 1,050 1,064,973
Sears Roebuck Acceptance Corp.
7.010% 09/19/02 1,350 1,361,813
Smith Barney Holdings
6.500% 10/15/02 200 197,250
-----------
7,986,991
-----------
INDUSTRIAL -- 6.4%
Air Products & Chemicals
6.862% 10/25/03 2,250 2,233,125
Belo (A.H.) Corp.
7.750% 06/01/27 480 483,000
Comdisco, Inc.
6.050% 10/31/97 500 500,415
Dayton-Hudson Co.
9.750% 11/01/98 500 521,300
Ford Motor Co.
8.875% 01/15/22 200 229,000
GTE Corp.
8.850% 03/01/98 500 508,835
Hertz Corp.
6.500% 04/01/00 500 499,375
Honeywell, Inc.
7.350% 05/15/00 200 204,250
Pepsico, Inc. Euro Bond
5.800% 08/31/98 500 498,550
Procter & Gamble Euro Bond
9.625% 01/14/01 400 438,500
Wal-Mart Stores
9.100% 07/15/00 100 107,125
Wal-Mart Stores Euro Bond
6.750% 05/24/02 125 125,781
Walt Disney Co.
6.375% 03/30/01 500 496,250
Xerox Corp. Euro Bond
5.750% 07/21/00 200 195,800
-----------
7,041,306
-----------
TELEPHONE -- 0.2%
Bell South Telecommunication
7.625% 05/15/35 215 213,119
-----------
TRANSPORTATION -- 1.9% CSX Corp.
7.250% 05/01/04 1,610 1,624,088
See Notes to Financial Statements.
22
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
CORPORATE BONDS (CONTINUED)
TRANSPORTATION (CONTINUED)
Ryder Systems, Inc.
5.770% 04/21/98 $ 400 $ 398,972
-----------
2,023,060
-----------
TOTAL CORPORATE BONDS
(Cost $20,614,175) 20,702,232
-----------
EURO BONDS -- 0.5%
State Bank New South Wales
(Cost $531,767)
10.375% 04/26/99 500 532,500
-----------
INTERNATIONAL BONDS -- 0.7%
Telstra Corp. Ltd. Euro Bond
(Cost $742,978)
6.500% 11/28/05 750 734,250
-----------
SUPRANATIONAL BONDS -- 1.9%
African Development Bank
(Cost $2,078,889)
7.750% 12/15/01 2,000 2,085,000
-----------
YANKEE BONDS -- 1.0%
Export-Import Bank Korea
6.500% 11/15/06 240 230,100
Glaxo Wellcome Euro Bond
6.125% 01/25/06 550 520,438
Hydro-Quebec
8.050% 07/07/06 220 238,700
Korea Electric Power Global
6.375% 12/01/03 165 157,988
-----------
TOTAL YANKEE BONDS
(Cost $1,145,950) 1,147,226
-----------
COMMERCIAL PAPER -- 14.1%
Autoliv
5.820% 07/08/97 4,500 4,494,908
Conagra, Inc.
6.550% 07/01/97 3,000 3,000,000
Enron Corp.
6.570% 07/01/97 5,000 5,000,000
Textron Financial Corp.
5.800% 07/02/97 2,885 2,884,535
-----------
TOTAL COMMERCIAL PAPER
(Cost $15,379,443) 15,379,443
-----------
U.S. TREASURY OBLIGATIONS -- 19.6%
U.S. Treasury Bill*
4.980% 08/21/97 255 253,110
-----------
U.S. Treasury Bonds
7.500% 11/15/16 2,640 2,822,213
8.750% 08/15/20 4,180 5,077,697
12.500% 08/15/14 615 903,743
6.625% 02/15/27 4,000 3,915,840
-----------
12,719,493
-----------
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
U.S. TREASURY OBLIGATIONS (CONTINUED)
U.S. Treasury Notes
6.500% 05/31/01 $ 2,500 $ 2,514,325
7.250% 08/15/04 5,690 5,929,492
------------
8,443,817
------------
U.S. TREASURY OBLIGATIONS
(Cost $21,218,160) 21,416,420
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 0.5%
Goldman Sachs Financial Square
Money Market Portfolio 319,839 319,839
Goldman Sachs Institutional Liquid
Assets Money Market Portfolio 200,101 200,101
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $519,940) 519,940
------------
TOTAL INVESTMENTS -- 105.9%
(Cost $115,347,778) 115,830,197
------------
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (5.9%)
Payable for Investments Purchased (8,556,136)
Other Assets and Liabilities, 2,139,000
------------
Total Liabilities in Excess of
Other Assets (6,417,136)
------------
NET ASSETS -- 100.0%
Applicable to 10,877,331 and 35,300
shares of beneficial interest
outstanding of Institutional Class
and Class A, respectively,
$.001 par value (Note 9) $109,413,061
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($109,059,147/10,877,331) $10.03
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE
($353,914/35,300) $10.03
======
MAXIMUM PUBLIC OFFERING PRICE
PER CLASS A SHARE (NOTE 6) $10.50
======
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
(DOUBLE DAGGER) Maturity dates for asset-backed securities, including
collateralized mortgage obligations, represent weighted average maturities of
the underlying securities at June 30, 1997
* Security pledged as collateral for futures contracts.
IO -- Interest Only security
PO -- Principal Only security
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
--------- ------------
Futures Contracts -- Long Position
U.S. Treasury Bonds, September 1997 125 $101,562
=== ========
See Notes to Financial Statements.
23
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
AGENCY OBLIGATIONS -- 28.5%
AID - Israel Guaranteed Notes
6.050% 08/15/00 $ 1,400 $ 1,384,250
Banco Vivienda del Peru
9.980% 08/01/08 3,449 3,899,900
Federal Farm Credit Bank
7.170% 04/25/02 3,500 3,583,685
Federal Home Loan Bank
7.800% 08/28/98 1,400 1,427,776
6.040% 06/21/00 2,450 2,430,939
Federal National Mortgage Association
6.375% 10/13/00 1,500 1,496,085
Honduras Aid
13.000% 06/01/01 1,729 1,905,846
Private Export Funding
9.450% 12/31/99 5,000 5,375,000
7.030% 10/31/03 1,650 1,685,063
Small Business Administration Participation
Certificates, Series 1995-20J, Class 1
6.850% 10/01/15 2,883 2,838,237
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $25,984,530) 26,026,781
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 12.4%
Federal Home Loan Mortgage Corp.
Series 1397, Class FA
6.000% 08/15/18 847 847,719
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 13,828 842,109
Federal National Mortgage Association
Series 1990-96, Class E
9.670% 01/25/17 1,015 1,050,110
Federal National Mortgage Association
Series 1992-29, Class A
6.400% 09/25/14 887 886,123
Federal National Mortgage Association
Series 1993-146, Class B PO
8.833% 05/25/23 1,198 1,158,960
Federal National Mortgage Association
Series 1996-M4, Class A
7.750% 03/17/17 2,822 2,869,207
Federal National Mortgage Association
Series 1997-M2, Class A
7.351% 09/17/03 3,559 3,619,058
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $11,200,011) 11,273,286
-----------
MORTGAGE BACKED SECURITIES -- 24.5%
Federal Home Loan Mortgage Corp.
Pool# 865008
8.320% 02/01/18 62 63,901
Federal National Mortgage Association
Pool# 73738
6.825% 11/01/01 3,782 3,776,881
COUPON MATURITY PAR VALUE
RATE (DOUBLE DAGGER) (000) (DAGGER)
- ------ --------------- ----- --------
MORTGAGE BACKED SECURITIES (CONTINUED)
Federal National Mortgage Association
Pool# 303724
6.000% 01/01/11 $ 3,848 $ 3,746,509
Federal National Mortgage Association
Pool# 73755
6.890% 01/01/02 2,909 2,911,712
Federal National Mortgage Association
Pool# 8217
11.000% 12/01/15 1,897 2,121,637
Federal National Mortgage Association
Pool# 375255
6.920% 07/01/04 1,000 1,004,375
Government National Mortgage
Association Pool# 162989
9.000% 05/15/16 29 31,458
Government National Mortgage
Association Pool# 227125
9.000% 07/15/17 117 125,460
Government National Mortgage
Association Pool# 346458
8.000% 03/15/23 308 317,134
Government National Mortgage
Association Pool# 352110
7.000% 08/15/23 3,498 3,455,076
Government National Mortgage
Association Pool# 780389
9.000% 08/15/09 3,892 4,189,090
Government National Mortgage
Association Pool# 8720
6.875% 10/20/25 609 623,537
-----------
TOTAL MORTGAGE BACKED SECURITIES
(Cost $22,079,587) 22,366,770
-----------
U.S. TREASURY OBLIGATIONS -- 31.7%
U.S. Treasury Bonds
10.750% 08/15/05 3,000 3,785,250
12.500% 08/15/14 1,880 2,762,660
-----------
6,547,910
-----------
U.S. Treasury Notes
5.125% 11/30/98 1,500 1,483,620
5.125% 12/31/98 3,175 3,138,043
6.250% 03/31/99 6,000 6,021,779
7.750% 01/31/00 15 15,545
6.375% 03/31/01 3,000 3,005,040
7.250% 08/15/04 3,850 4,012,047
7.000% 07/15/06 4,550 4,681,540
-----------
22,357,614
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $28,765,011) 28,905,524
-----------
See Notes to Financial Statements.
24
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
TEMPORARY INVESTMENTS -- 2.4%
Goldman Sachs Financial Square
Treasury Obligation Portfolio
(Cost $2,155,587) 2,155,587 $ 2,155,587
------------
TOTAL INVESTMENTS -- 99.5%
(Cost $90,184,726) 90,727,948
------------
OTHER ASSETS IN EXCESS
OF LIABILITIES-- 0.5% 458,812
------------
NET ASSETS -- 100.0%
Applicable to 5,615,178 and 1,617 shares
of beneficial interest outstanding of
Institutional Class and Class A,
respectively, $.001 par value (Note 9) $ 91,186,760
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($91,160,520/5,615,178) $16.23
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE
($26,240/1,617) $16.23
======
MAXIMUM PUBLIC OFFERING PRICE
PER CLASS A SHARE (NOTE 6) $16.99
======
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
(DOUBLE DAGGER) Maturity dates for asset-backed securities, including
collateralized mortgage obligations, represent weighted average maturities of
the underlying securities at June 30, 1997.
IO -- Interest Only security
PO -- Principal Only security
See Notes to Financial Statements.
25
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- ---------- ----- ------------
MUNICIPAL BONDS -- 95.1%
ARIZONA -- 13.1%
Arizona State Transportation Highway
Revenue
6.500% 07/01/11 $ 6,300 $ 6,859,125
Maricopa County, Arizona, Unified School
District No. 48, Scottsdale
7.750% 07/01/02 1,570 1,791,763
Phoenix, Arizona, General Obligation Bonds
7.500% 07/01/08 5,000 6,081,250
Salt River Project, Arizona, Agriculture and
Improvement District
6.500% 01/01/04 6,050 6,670,125
Tucson, Arizona, Street and Highway User
Revenue Series A
7.000% 07/01/11 1,800 2,126,250
7.000% 07/01/12 2,000 2,347,500
-----------
25,876,013
-----------
CALIFORNIA -- 3.3%
California State General Obligation Bonds
6.200% 09/01/02 1,750 1,890,000
6.750% 04/01/07 1,750 2,012,500
Riverside County, California, Transportation
Commission Sales Tax Revenue Series A
6.000% 06/01/07 2,430 2,660,850
-----------
6,563,350
-----------
COLORADO -- 2.9%
Denver, Colorado, City and County Airport
Revenue Bonds Series A
7.500% 11/15/06 5,000 5,768,750
-----------
DELAWARE -- 2.0%
Delaware State General Obligation Bonds
6.125% 04/01/01 3,700 3,922,000
-----------
FLORIDA -- 3.6%
Gainsville, Florida, Utilities System Revenue
Series A
5.750% 10/01/07 1,500 1,597,500
Reedy Creek, Florida, Improvement District,
Florida Utilities Revenue
6.500% 10/01/16 5,000 5,443,750
-----------
7,041,250
-----------
GEORGIA -- 2.2%
Georgia State General Obligation Bonds
6.500% 08/01/02 3,000 3,281,250
Georgia State General Obligation
Unlimited Bonds
7.250% 07/01/02 1,000 1,125,000
-----------
4,406,250
-----------
ILLINOIS -- 10.8%
Chicago, Illinois, Board of Education,
General Obligation Unlimited Bond
6.750% 12/01/09 1,000 1,142,500
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- ---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS (CONTINUED)
Chicago, Illinois, Metropolitan Water
Capital Improvement Bonds
6.600% 01/01/02 $ 2,600 $ 2,801,500
Chicago, Illinois, Metropolitan Water
Reclamation District-Greater Chicago
6.300% 12/01/09 2,000 2,180,000
DuPage County, Illinois, First
Preservation District
6.000% 11/01/03 2,000 2,137,500
Illinois State Government General
Obligation Unlimited Bonds
5.500% 08/01/01 3,500 3,626,875
Metropolitan Pier Illinois Revenue
6.000% 12/15/06 5,000 5,393,750
Sangamon County, Illinois School District
6.900% 01/01/07 2,700 3,108,375
University of Illinois Revenue Bonds
5.800% 10/01/97 1,000 1,004,800
-----------
21,395,300
-----------
INDIANA -- 4.3%
Indiana Health Facility Financing
Authority Hospital Revenue
6.000% 02/15/05 4,000 4,245,000
Indiana Municipal Power Agency, Power
Supply System Revenue Reference
Series B
6.000% 01/01/11 3,000 3,206,250
Indianapolis, Indiana, Local Public
Improvement Revenue Bonds
6.500% 02/01/08 1,000 1,077,500
-----------
8,528,750
-----------
KANSAS -- 1.5%
Kansas State Department of Transportation
Highway Revenue Bonds
7.250% 03/01/04 2,555 2,951,025
-----------
KENTUCKY -- 1.8%
Kentucky Economic Development
Financing Authority Hospital
Facilities Revenue Bonds
5.625% 02/01/17 3,500 3,469,375
-----------
MARYLAND -- 2.6%
Maryland State Department of
Transportation
4.200% 06/15/03 2,000 1,947,500
Maryland State General Obligation Bonds
5.300% 10/15/99 2,000 2,052,500
Montgomery County, Maryland,
General Obligation Bonds
8.600% 05/01/03 1,000 1,201,250
-----------
5,201,250
-----------
See Notes to Financial Statements.
26
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- ---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
MASSACHUSETTS -- 2.7%
Massachusetts State General Obligation
Bonds Series A
6.250% 07/01/03 $ 3,400 $ 3,689,000
Massachusetts State Health & Education
Facilities Authority Revenue Bonds
7.125% 10/01/10 1,500 1,638,750
-----------
5,327,750
-----------
MICHIGAN -- 5.1%
Detroit, Michigan, Water System
5.300% 07/01/09 1,000 1,018,750
Oakland County, Michigan, Economic
Development
6.375% 11/01/04 8,200 8,958,500
-----------
9,977,250
-----------
MINNESOTA -- 1.2%
Minnesota State General Obligation Bonds
4.900% 08/01/02 2,300 2,348,875
-----------
MISSISSIPPI -- 1.6%
Mississippi River Bridge Authority
Revenue Bonds
6.750% 11/01/12 3,000 3,240,000
-----------
MISSOURI -- 0.5%
Kansas City, Missouri, General
Obligation Bonds
6.500% 03/01/06 1,000 1,056,250
-----------
NEBRASKA -- 0.6%
Omaha, Nebraska, General Obligation
Bonds
5.125% 12/01/99 1,070 1,095,413
-----------
NEW JERSEY -- 2.8%
New Jersey State Highway, Garden State
Parkway General Revenue
6.200% 01/01/10 5,000 5,481,250
-----------
NEW YORK -- 3.6%
New York State General Obligation
Bonds Series B
6.375% 08/15/00 3,750 3,956,250
New York, New York General Obligation
Bonds Series H
6.000% 08/01/10 3,000 3,097,500
-----------
7,053,750
-----------
OHIO -- 6.2%
Ohio State Highway Capital Improvements
Series B
4.500% 05/01/04 2,050 2,034,625
Ohio State Natural Resources Capital
Facilities Series C
4.700% 04/01/04 2,470 2,482,350
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- ---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Warren, Ohio, Hospital Revenue Bonds
Series B
7.300% 11/15/14 $ 6,610 $ 7,700,650
-----------
12,217,625
-----------
SOUTH CAROLINA -- 1.4%
South Carolina State Capital
Improvement Series V
6.500% 02/01/00 2,635 2,776,631
-----------
TEXAS -- 9.3%
Austin, Texas, Independent School District
7.000% 08/01/04 5,210 5,939,400
Bexar County, Texas, Detention Facilities
7.250% 06/15/04 1,000 1,151,250
Harris County, Texas, General Obligation
Bonds
9.000% 06/01/02 1,250 1,492,188
Spring Branch, Texas, Independent
School District
6.500% 02/01/02 1,750 1,890,000
Texas Higher Education Authority
Facilities Revenue Series 85B
5.500% 06/27/00 1,500 1,500,000
University of Texas Revenue Financing
System Series B
6.000% 08/15/06 3,540 3,867,450
West Central Texas Municipal Water
District Revenue Water Transmission
Line Contract
6.750% 11/01/03 2,325 2,589,469
-----------
18,429,757
-----------
UTAH -- 4.8%
Utah State General Obligation Bonds
6.000% 07/01/01 5,000 5,300,000
Utah State General Obligation Bonds
Series 1991
5.500% 07/01/98 4,100 4,169,782
-----------
9,469,782
-----------
WASHINGTON -- 2.8%
Washington Public Power Supply
System Project No. 1, Refunding
Electric Revenue Bonds VR
4.000% 07/07/97 200 200,000
Washington State Refunding
5.600% 09/01/04 5,000 5,256,250
-----------
5,456,250
-----------
WISCONSIN -- 4.4%
Kenosha, Wisconsin, Waterworks Revenue
4.700% 12/01/01 3,000 3,007,500
Wisconsin State Transportation Revenue
6.250% 07/01/02 3,135 3,366,205
See Notes to Financial Statements.
27
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- ---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
WISCONSIN (CONTINUED)
Wisconsin State Transportation Revenue
Series A
7.500% 07/01/04 $ 2,000 $ 2,322,500
------------
8,696,205
------------
TOTAL MUNICIPAL BONDS
(Cost $184,178,647) 187,750,101
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 3.4%
Federated Tax-Free Obligation Fund 5,503,149 5,503,149
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 1,063,327 1,063,327
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $6,566,476) 6,566,476
------------
TOTAL INVESTMENTS -- 98.5%
(Cost $190,745,123) 194,316,577
------------
OTHER ASSETS IN EXCESS
OF LIABILITIES-- 1.5% 3,042,289
------------
NET ASSETS -- 100.0%
Applicable to 18,643,373 and 14,042
shares of beneficial interest outstanding
of Institutional Class and Class A, respectively,
$.001 par value (Note 9) $197,358,866
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($197,210,334/18,643,373) $10.58
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE ($148,532/14,042) $10.58
======
MAXIMUM PUBLIC OFFERING PRICE PER
CLASS A SHARE (NOTE 6) $11.08
======
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
VR -- Variable rate demand note; interest rate in effect on 06/30/97. Maturity
date is the later of the next interest rate change or exercise of demand
feature.
See Notes to Financial Statements.
28
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- -------------- ---------- ----- ------------
MUNICIPAL BONDS -- 97.0%
ALASKA -- 1.2%
Anchorage, Alaska, General Obligation
Bonds
6.250% 06/01/23 $ 2,000 $ 2,030,000
-----------
ARIZONA -- 5.1%
Arizona State Transportation Board
Highway Revenue Series B
8.000% 07/01/06 4,000 4,925,000
Maricopa County, Arizona, Hospital
Revenue
6.125% 04/01/18 1,250 1,271,875
Phoenix, Arizona, Civic Corporation
Water System Revenue
5.625% 07/01/09 2,345 2,415,350
-----------
8,612,225
-----------
CALIFORNIA -- 4.9%
California State General Obligation Bonds
5.900% 03/01/25 1,000 1,020,000
East Bay, California, Municipal Utilities
District, Water System Revenue
5.000% 06/01/14 3,500 3,329,375
Los Angeles, California, Waste Water
System Revenue Series A
4.750% 02/01/09 4,000 3,870,000
-----------
8,219,375
-----------
COLORADO -- 0.6%
Colorado Springs, Colorado, Utilities
Revenue Unrefunded Balance Series A
6.500% 11/15/15 1,000 1,076,250
-----------
CONNECTICUT -- 1.7%
Connecticut State Series B
6.000% 11/15/01 2,725 2,898,719
-----------
FLORIDA -- 7.7%
Broward County, Florida, General
Obligation Bonds
12.500% 01/01/06 4,000 6,080,000
Florida State, Broward County
Expressway Authority
9.875% 07/01/09 4,000 5,730,000
Orlando, Florida, Utilities Commission
Water and Electric Revenue BANS
Series 1985B
6.750% 10/01/17 1,000 1,168,750
-----------
12,978,750
-----------
GEORGIA -- 4.2%
Atlanta, Georgia, Airport Revenue
6.000% 01/01/07 2,000 2,167,500
Georgia State General Obligation
Unlimited Bond
7.250% 07/01/02 1,500 1,687,500
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- -------------- ---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
GEORGIA (CONTINUED)
Metropolitan Atlanta Rapid Transportation
Authority, Georgia Sales Tax Revenue
6.200% 07/01/10 $ 2,890 $ 3,164,550
-----------
7,019,550
-----------
HAWAII -- 1.1%
Hawaii State General Obligation Bonds
Series B
5.600% 10/01/03 1,755 1,842,750
-----------
ILLINOIS -- 10.6%
De Kalb & Kane Counties, Illinois,
Community United School District
No. 427
5.500% 01/01/11 1,325 1,348,187
5.550% 01/01/12 1,125 1,144,687
Illinois Development Finance Authority
Revenue
6.650% 02/01/11 4,000 4,530,000
Illinois Development Finance Authority
Revenue School District PG-Rockford
School 205
6.550% 02/01/09 1,000 1,123,750
Illinois Development Finance Authority
Revenue, School District Number U46
9.000% 01/01/07 4,250 5,530,313
Illinois State Sales Tax Revenue Series K
6.800% 06/15/10 2,000 2,117,500
Illinois State Sales Tax Revenue Series V
6.375% 06/15/20 1,000 1,047,500
Metropolitan Pier & Exposition Authority,
Illinois Dedicated State Tax Revenue
6.500% 06/01/06 1,000 1,107,500
-----------
17,949,437
-----------
INDIANA -- 4.7%
Indiana Municipal Power Agency, Power
Supply System Revenue Reference
Series B
6.000% 01/01/11 6,455 6,898,781
Saint Joseph's County, Indiana,
Educational Facilities Revenue
University of Notre Dame
6.500% 03/01/26 1,000 1,133,750
-----------
8,032,531
-----------
KENTUCKY -- 2.4%
Kentucky Economic Development Finance
Authority, Hospital Facilities Revenue
5.700% 02/01/28 2,000 1,985,000
Kentucky Economic Development
Financing Authority, Hospital
Facilities Revenue Bonds
5.625% 02/01/17 2,000 1,982,500
-----------
3,967,500
-----------
See Notes to Financial Statements.
29
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- -------------- ---------- ----- ------------
MUNICIPAL BONDS (CONTINUED))
MARYLAND -- 2.0%
Maryland State Department of
Transportation Construction Revenue
4.125% 06/15/02 $ 3,480 $ 3,414,750
-----------
MICHIGAN -- 9.0%
Detroit, Michigan, Water Supply System
Revenue
6.500% 07/01/15 1,000 1,120,000
East Grand Rapids, Michigan, Public
School District
5.000% 05/01/16 2,500 2,362,500
Michigan State Hospital Financial
Authority 5 Series A, Mclaren
Obligated Group
7.500% 09/15/21 2,975 3,372,906
Michigan State Trunk Line Revenue
Series A
5.250% 11/15/04 2,460 2,533,800
Oakland County, Michigan, Economic
Development Corporation, Limited
Obligation Revenue
6.900% 11/01/14 2,725 3,062,219
Royal Oak, Michigan, Hospital Revenue
5.500% 01/01/18 2,825 2,800,281
-----------
15,251,706
-----------
MINNESOTA -- 1.4%
Metropolitan Council Minneapolis-St. Paul
Metropolitan Area
5.150% 09/01/08 2,425 2,449,250
-----------
MISSISSIPPI -- 1.9%
Mississippi River Bridge Authority
Revenue Bonds
6.750% 11/01/12 3,000 3,240,000
-----------
NEVADA -- 1.7%
Clark County, Nevada, Sanitation District
General Obligation Bonds
6.700% 07/01/08 2,555 2,816,888
-----------
NEW JERSEY -- 3.0%
New Jersey State General Obligation
Bonds
6.250% 09/15/00 2,750 2,908,125
New Jersey State Highway, Garden State
Parkway General Revenue
6.200% 01/01/10 2,000 2,192,500
-----------
5,100,625
-----------
NEW YORK -- 9.5%
New York State General Obligation Bonds
Series B
6.375% 08/15/00 6,000 6,330,000
New York, New York, General Obligation
Bonds Series H
6.000% 08/01/13 3,500 3,570,000
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- -------------- ---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
NEW YORK (CONTINUED)
New York, New York, Municipal Water
Finance Authority Water and
Sewage Revenue
5.625% 06/15/19 $ 3,000 $ 2,958,750
Port Authority of New York and New
Jersey Consolidated Series One
Hundred Revenue
5.625% 10/15/17 3,175 3,190,875
-----------
16,049,625
-----------
OHIO -- 2.9%
Lima, Ohio, Water System Revenue
6.300% 12/01/12 2,800 2,978,500
Ohio State Higher Education Facilities
Community Revenue, Denison
University Project
5.350% 11/01/10 1,000 1,002,500
5.400% 11/01/11 1,000 998,750
-----------
4,979,750
-----------
OKLAHOMA -- 0.9%
Tulsa, Oklahoma, Tulsa Industrial
Authority Revenue University of Tulsa
Series A
6.000% 10/01/16 1,500 1,601,250
-----------
PENNSYLVANIA -- 2.9%
Somerset County, Pennsylvania, General
Authority Commonwealth Lease Revenue
6.250% 10/15/11 4,670 4,991,063
-----------
TEXAS -- 9.5%
Dallas, Texas, General Obligation Bonds
6.000% 02/15/03 2,320 2,485,300
Harris County, Texas, Unlimited Tax
Subordinate Lien on Revenues Toll Road
Series 1985 A, B, C, D, E
5.500% 10/01/12 2,540 2,568,574
Houston, Texas, Water and Sewage Revenue
6.200% 12/01/23 4,750 4,987,500
Texas Municipal Power Agency Revenue
5.100% 09/01/03 6,000 6,135,000
-----------
16,176,374
-----------
VIRGINIA -- 2.8%
Norfolk, Virginia, Water Revenue
5.875% 11/01/15 2,400 2,469,000
Richmond, Virginia, General Obligation
Bonds Series B
6.500% 07/15/02 2,160 2,346,300
-----------
4,815,300
-----------
WISCONSIN -- 5.3%
Kenosha, Wisconsin, Waterworks
Revenue
4.700% 12/01/01 4,000 4,010,000
See Notes to Financial Statements.
30
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- -------------- ---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
WISCONSIN (CONTINUED)
Wisconsin State General Obligation
Bonds Series 3
5.250% 11/01/10 $ 5,000 $ 5,037,500
------------
9,047,500
------------
TOTAL MUNICIPAL BONDS
(Cost $159,377,416) 164,561,168
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 1.4%
Federated Tax-Free Obligation Fund 1,187,325 1,187,325
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 1,224,044 1,224,044
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $2,411,369) 2,411,369
------------
TOTAL INVESTMENTS -- 98.4%
(Cost $161,788,785) 166,972,537
------------
OTHER ASSETS IN EXCESS OF LIABILITIES 2,717,395
------------
NET ASSETS -- 100.0%
Applicable to 16,515,499 and 14,893
shares of beneficial interest outstanding
of Institutional Class and Class A, respectively,
$.001 par value (Note 9) $169,689,932
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($169,537,054/16,515,499) $10.27
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE ($152,878/14,893) $10.27
======
MAXIMUM PUBLIC OFFERING PRICE PER
CLASS A SHARE (NOTE 6) $10.75
======
- ---------
(DAGGER) See Note 2a to the Financial Statements.
BANS -- Bond Anticipation Note.
See Notes to Financial Statements.
31
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (DAGGER)
------ --------
COMMON STOCK -- 3.3%
TRUCKING -- 3.3%
GATX Corp.
(Cost $26,373) 574 $33,148
-------
CONVERTIBLE PREFERRED STOCK -- 41.4%
BANKS -- 3.7%
National Australia Bank Ltd. 1,000 27,937
Sovereign Bancorp 100 9,400
-------
37,337
-------
BUILDING & CONSTRUCTION -- 1.7%
Owens Corning Capital 300 16,987
-------
ELECTRIC -- 0.9%
Citizens Utilities Trust 200 8,750
-------
FOOD & AGRICULTURE -- 2.6%
Merrill Lynch "I.G.L." STRYPES 700 26,250
-------
INDUSTRIAL -- 1.7%
Corning Glass Works 200 17,400
-------
INSURANCE -- 4.2%
American General 200 12,675
Frontier Financing Trust 300 22,800
St. Paul Capital 100 6,925
-------
42,400
-------
LEISURE -- 1.4%
Mattel, Inc. 1,000 14,125
-------
MACHINERY & EQUIPMENT -- 3.5%
Cooper Industries, Inc. 1,500 34,500
-------
MEDIA -- 1.6%
Merrill Lynch "Cox" STRYPES 150 3,581
Triathlon Broadcasting Co. 1,500 12,750
-------
16,331
-------
MISCELLANEOUS FINANCE -- 5.3%
Excel Realty, Inc. 1,000 27,250
Penncorp Financial Group, Inc. 300 26,250
-------
53,500
-------
OIL & GAS -- 1.3%
Ultramar Diamond Shamrock Corp. 200 12,650
-------
PAPER-FOREST PRODUCTS -- 4.3%
James River Corp. Series L 800 43,200
-------
TELECOMMUNICATIONS -- 1.2%
IXC Communications, Inc. 100 11,800
-------
TELEPHONES -- 5.9%
Airtouch Communications, Inc. 1,000 28,500
Salomon, Inc.* 200 12,775
Sprint Corp. 500 18,062
-------
59,337
-------
VALUE
SHARES (DAGGER)
------ --------
CONVERTIBLE PREFERRED STOCK (CONTINUED)
THRIFT INSTITUTIONS -- 2.1%
Ahmanson, H.F. & Co. 230 $ 21,275
-----------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $342,820) 415,842
-----------
COUPON PAR VALUE
RATE MATURITY (000) (DAGGER)
-------- ---------- -------- ---------
CONVERTIBLE CORPORATE BONDS -- 52.3%
AIR TRANSPORT -- 3.5%
Alaska Air Group, Inc.
6.875% 06/15/14 $ 35 34,650
-----------
APPAREL, TEXTILES -- 7.3%
Guilford Mills, Inc.
6.000% 09/15/12 40 42,000
Nine West Group, Inc.
5.500% 07/15/03 35 31,719
-----------
73,719
-----------
ELECTRONICS -- 6.3%
Atmel Corp.
3.250% 06/01/02 25 26,875
Integrated Device Technology
5.500% 06/01/02 15 12,881
Xilinx, Inc.
5.250% 11/01/02 20 23,150
-----------
62,906
-----------
FOOD SERVICES & LODGING -- 5.6%
Hilton Hotels
5.000% 05/15/06 25 26,750
Signature Resorts, Inc.
5.750% 01/15/07 30 30,000
-----------
56,750
-----------
HEALTH CARE -- 2.0%
Alza Corp.
5.000% 05/01/06 10 10,188
Hybridon, Inc.
9.000% 04/01/04 10 9,675
-----------
19,863
-----------
INDUSTRIAL -- 7.8%
Berkshire Hathaway, Inc.
1.000% 12/02/01 35 36,487
Trinova Corp.
6.000% 10/15/02 40 41,750
-----------
78,237
-----------
INSURANCE -- 1.6%
Westbridge Capital Corp.
7.500% 05/01/04 15 16,500
-----------
METALS -- 2.7%
Agnico Eagle Mines Ltd.
3.500% 01/27/04 34 27,073
-----------
See Notes to Financial Statements.
32
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR VALUE
RATE MATURITY (000) (DAGGER)
-------- ---------- -------- ---------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
OFFICE EQUIPMENT - SERVICES -- 2.3%
U.S. Office Products Co.
5.500% 05/15/03 $ 25 $ 23,219
----------
RESTAURANTS -- 4.7%
Boston Chicken, Inc.
7.750% 05/01/04 15 13,706
Einstein/Noah Bagel Corp.
7.250% 06/01/04 40 33,950
-----------
47,656
-----------
RETAIL -- 2.5%
Central Garden & Pet Co.
6.000% 11/15/03 10 10,713
The Sports Authority, Inc.
5.250% 09/15/01 15 13,875
-----------
24,588
-----------
RETAIL-BUILDING MATERIALS -- 1.7%
Home Depot, Inc.
3.250% 10/01/01 15 17,213
-----------
TECHNOLOGY -- 1.3%
S3, Inc.
5.750% 10/01/03 15 12,919
-----------
TELECOMMUNICATIONS -- 3.0%
Gilat Satellite Networks
6.500% 06/03/04 30 30,563
-----------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $505,144) 525,856
-----------
VALUE
SHARES (DAGGER)
-------- ---------
TEMPORARY INVESTMENTS -- 1.9%
Dreyfus Cash Management Plus #719 10,300 $ 10,300
Goldman Sachs Financial Square
Money Market Portfolio 8,970 8,970
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $19,270) 19,270
-----------
TOTAL INVESTMENTS -- 98.9%
(Cost $893,607) 994,116
-----------
OTHER ASSETS IN EXCESS OF
LIABILITIES-- 1.1% 11,296
-----------
NET ASSETS -- 100.0%
Applicable to 85,096 shares outstanding,
$.001 par value; 100,000,000 shares
authorized (Note 9) $ 1,005,412
===========
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE ($1,005,412/ 85,096) $11.81
======
MAXIMUM PUBLIC OFFERING PRICE PER SHARE
(NOTE 6) $12.37
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
STRYPES -- Structured Yield Product Exchangeable for Stock.
See Notes to Financial Statements.
33
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK -- 14.0%
BANKS -- 4.6%
First Chicago NBD Corp. 44,215 $ 2,675,007
-----------
BUSINESS SERVICES -- 0.0%
Olsten Corp. 1 19
-----------
INSURANCE -- 1.6%
Trenwick Group, Inc. 25,051 939,412
-----------
OFFICE EQUIPMENT -- 5.3%
Quantum Corp.* 85,384 1,734,362
Seagate Technology, Inc.* 38,095 1,340,468
-----------
3,074,830
-----------
TRUCKING -- 2.5%
GATX Corp. 25,286 1,460,266
-----------
TOTAL COMMON STOCK
(Cost $4,577,392) 8,149,534
-----------
CONVERTIBLE PREFERRED STOCK -- 34.0%
BANKS -- 1.4%
National Australia Bank Ltd. 13,500 377,156
Sovereign Bancorp 4,900 460,600
-----------
837,756
-----------
BUILDING & CONSTRUCTION -- 1.4%
Owens Corning Capital 14,700 832,387
-----------
CHEMICALS -- 0.6%
Atlantic Richfield Co.* 15,000 322,500
-----------
CONTAINERS -- 1.2%
Crown Cork & Seal 14,000 707,000
-----------
ELECTRIC -- 1.1%
Citizens Utilities Trust 14,800 647,500
-----------
FOOD & AGRICULTURE -- 1.1%
Merrill Lynch "I.G.L." STRYPES 16,800 630,000
-----------
FOOD & BEVERAGES -- 1.4%
Chiquita Brands International, Inc. 10,000 580,000
Dole Food Co. 5,000 215,000
-----------
795,000
-----------
HEALTH CARE SERVICES -- 0.5%
Laboratory Corp. of America 5,000 285,000
-----------
HOTELS, RESTAURANTS -- 0.8%
Felcor Suite Hotels, Inc. 15,000 444,375
-----------
INDUSTRIAL -- 1.9%
Corning Glass Works 12,950 1,126,650
-----------
INSURANCE -- 2.2%
American General 9,800 621,075
American Heritage Life
Investment Corp. 2,500 137,500
Frontier Financing Trust 2,200 167,200
St. Paul Capital 4,900 339,325
-----------
1,265,100
-----------
SHARES VALUE(DAGGER)
-------- ------------
CONVERTIBLE PREFERRED STOCK (CONTINUED)
LEISURE -- 0.6%
Mattel, Inc. 24,000 $ 339,000
-----------
MACHINERY & EQUIPMENT -- 0.7%
Cooper Industries, Inc. 18,500 425,500
-----------
MEDIA -- 1.8%
Evergreen Media Corp. 10,000 540,000
Merrill Lynch "Cox" STRYPES 4,850 115,794
Triathlon Broadcasting Co. 48,500 412,250
-----------
1,068,044
-----------
MISCELLANEOUS FINANCE -- 6.9%
Excel Realty, Inc. 25,000 681,250
Merrill Lynch "SAI" STRYPES 5,000 342,500
Penncorp Financial Group, Inc. 14,700 1,286,250
Rouse Co. 15,000 723,750
Security Capital Pacific Trust 31,700 966,850
-----------
4,000,600
-----------
OFFICE EQUIPMENT -- 0.8%
Microsoft Corp. 2.75% 5,000 434,375
-----------
OIL & GAS -- 1.1%
Ultramar Diamond Shamrock Corp. 10,100 638,825
-----------
PAPER-FOREST PRODUCTS -- 2.9%
International Paper* 5,000 263,125
James River Corp. Series K 3,820 205,325
James River Corp. Series L 22,850 1,233,900
-----------
1,702,350
-----------
RESTAURANTS -- 1.0%
Wendy's Financing 10,000 586,250
-----------
TELECOMMUNICATIONS -- 0.4%
IXC Communications, Inc. 1,900 224,200
-----------
TELEPHONES -- 2.2%
Airtouch Communications, Inc. 10,000 285,000
Salomon, Inc.* 9,800 625,975
Sprint Corp. 9,500 343,187
-----------
1,254,162
-----------
THRIFT INSTITUTIONS -- 2.0%
Ahmanson, H.F. & Co. 12,530 1,159,025
-----------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $16,328,955) 19,725,599
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- ---------- ----- ------------
CONVERTIBLE CORPORATE BONDS -- 39.0%
AIR TRANSPORT -- 2.5%
Alaska Air Group, Inc.
6.875% 06/15/14 $ 670 663,300
Atlantic Coast Airlines, Inc.
7.000% 07/01/04 500 525,000
See Notes to Financial Statements.
34
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- ---------- ----- ------------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
AIR TRANSPORT (CONTINUED)
Reno Air, Inc.
9.000% 09/30/02 $ 250 $ 270,313
-----------
1,458,613
-----------
APPAREL, TEXTILES -- 1.5%
Guilford Mills, Inc.
6.000% 09/15/12 460 483,000
Nine West Group, Inc.
5.500% 07/15/03 415 376,094
-----------
859,094
-----------
COAL-GAS-PIPELINES -- 2.7%
Consolidated Natural Gas Co.
7.250% 12/15/15 530 567,100
SFP Pipeline Holdings, Inc.
11.160% 08/15/10 805 990,150
-----------
1,557,250
-----------
COMPUTER AND OFFICE EQUIPMENT -- 0.4%
C-Cube Microsystems, Inc.
5.875% 11/01/05 300 254,625
-----------
ELECTRONICS -- 3.0%
Atmel Corp.
3.250% 06/01/02 175 188,125
Integrated Device Technology
5.500% 06/01/02 490 420,788
Lernout & Hauspie Speech Products NV
8.000% 11/15/01 250 338,750
VLSI Technology
8.250% 10/01/05 250 249,375
Xilinx, Inc.
5.250% 11/01/02 480 555,600
-----------
1,752,638
-----------
FINANCIAL SERVICES -- 2.6%
Credit Suisse First Boston
7.250% 07/01/99 250 249,375
Enserch Corp.
6.375% 04/01/02 500 500,000
Fremont General Corp.
0.000% 07/30/97 1,000 755,000
-----------
1,504,375
-----------
FOOD & AGRICULTURE -- 1.1%
General Host Corp.
8.000% 02/15/02 780 657,150
-----------
FOOD SERVICES & LODGING -- 2.0%
Hilton Hotels
5.000% 05/15/06 975 1,043,250
Signature Resorts, Inc.
5.750% 01/15/07 120 120,000
-----------
1,163,250
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- ---------- ----- ------------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
HEALTH CARE -- 2.5%
Alza Corp.
5.000% 05/01/06 $ 990 $ 1,008,563
Hybridon, Inc.
9.000% 04/01/04 290 280,575
Phymatrix Corp.
6.750% 06/15/03 200 179,750
-----------
1,468,888
-----------
INDUSTRIAL -- 8.2%
Berkshire Hathaway, Inc.
1.000% 12/02/01 500 521,250
Mascotech, Inc.
4.500% 12/15/03 500 451,875
Trinova Corp.
6.000% 10/15/02 1,900 1,983,125
U.S. Filter Corp.
4.500% 12/15/01 500 487,500
6.000% 09/15/05 500 777,500
USA Waste Services, Inc.
4.000% 02/01/02 500 540,000
-----------
4,761,250
-----------
INSURANCE -- 0.5%
Westbridge Capital Corp.
7.500% 05/01/04 285 313,500
-----------
METALS -- 1.9%
Agnico Eagle Mines Ltd.
3.500% 01/27/04 200 159,250
Inco Ltd.
5.750% 07/01/04 800 948,000
-----------
1,107,250
-----------
OFFICE EQUIPMENT - SERVICES -- 0.4%
U.S. Office Products Co.
5.500% 05/15/03 225 208,969
-----------
OIL DOMESTIC -- 3.7%
Pennzoil Co.
6.500% 01/15/03 1,220 2,153,300
-----------
RESTAURANTS -- 1.3%
Boston Chicken, Inc.
7.750% 05/01/04 235 214,731
Einstein/Noah Bagel Corp.
7.250% 06/01/04 600 509,250
-----------
723,981
-----------
RETAIL -- 1.3%
Central Garden & Pet Co.
6.000% 11/15/03 290 310,663
The Sports Authority, Inc.
5.250% 09/15/01 485 448,625
-----------
759,288
-----------
See Notes to Financial Statements.
35
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- ---------- ----- ------------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
RETAIL - BUILDING MATERIALS -- 0.5%
Home Depot, Inc.
3.250% 10/01/01 $ 235 $ 269,663
-----------
TECHNOLOGY -- 1.9%
S3, Inc.
5.750% 10/01/03 485 417,706
U.S. Cellular Corp.
0.000% 06/15/00 2,000 700,000
-----------
1,117,706
-----------
TELECOMMUNICATIONS -- 1.0%
Gilat Satellite Networks
6.500% 06/03/04 570 580,688
-----------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $20,615,221) 22,671,478
-----------
AGENCY OBLIGATIONS -- 11.2%
Federal National Mortgage Association
Discount Note
(Cost $6,494,118)
5.430% 07/07/97 6,500 6,494,118
-----------
SHARES
--------
TEMPORARY INVESTMENTS -- 2.6%
Dreyfus Cash Management Plus #719 647,075 647,075
Goldman Sachs Financial Square
Money Market Portfolio 892,637 892,637
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $1,539,712) 1,539,712
-----------
TOTAL INVESTMENTS -- 100.8%
(Cost $49,555,398) 58,580,441
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.8%) (481,750)
-----------
NET ASSETS -- 100.0%
Applicable to 1,932,989 and 409.196 shares
of beneficial interest outstanding of
Institutional and Class A, respectively,
$.001 par value (Note 9) $58,098,691
===========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER INSTITUTIONAL CLASS SHARE
($58,086,395/ 1,932,989) $30.05
======
NET ASSET VALUE AND REDEMPTION PRICE
PER CLASS A SHARE ($12,295.92/ 409.196) $30.05
======
MAXIMUM PUBLIC OFFERING PRICE PER
CLASS A SHARE (NOTE 6) $31.47
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
STRYPES -- Structured Yeild Product Exchangeable for Stock.
See Notes to Financial Statements.
36
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK -- 98.8%
AEROSPACE -- 5.0%
Lockheed Martin Corp. 166,500 $ 17,243,156
Northrop Grumman Corp. 139,900 12,284,969
Textron, Inc. 171,400 11,376,675
-----------
40,904,800
-----------
AIR TRANSPORT -- 3.4%
AMR Corp.* 59,900 5,540,750
British Airways 110,200 12,666,112
Delta Air Lines, Inc. 117,800 9,659,600
-----------
27,866,462
-----------
ALCOHOLIC BEVERAGES & TOBACCO -- 2.5%
Philip Morris Companies, Inc. 471,000 20,900,625
-----------
APPAREL, TEXTILES -- 2.6%
Fruit of the Loom, Inc.* 362,400 11,234,400
VF Corp. 114,700 9,720,825
-----------
20,955,225
-----------
AUTOS -- 3.3%
Ford Motor Co., Inc. 727,200 27,451,800
-----------
BANKS -- 6.2%
BankAmerica Corp. 321,400 20,750,387
Chase Manhattan Corp. 217,880 21,147,977
Southtrust Corp. 209,200 8,655,650
-----------
50,554,014
-----------
BUSINESS SERVICES -- 0.3%
Olsten Corp., Class B 121,950 2,370,403
-----------
CHEMICALS -- 0.4%
Lyondell Petrochemical Co. 151,000 3,293,687
-----------
CONSTRUCTION -- 1.0%
Centex Corp. 202,800 8,238,750
-----------
DRUGS -- 4.7%
Bergen Brunswig Corp. 521,750 14,543,781
Bristol-Myers Squibb Co. 255,800 20,719,800
Cardinal Health, Inc. 58,900 3,372,025
-----------
38,635,606
-----------
ELECTRIC & GAS -- 5.7%
GPU, Inc. 529,000 18,977,875
Long Island Lighting 648,000 14,904,000
N.Y. State Electric & Gas Corp. 605,700 12,643,987
-----------
46,525,862
-----------
ELECTRONICS -- 4.0%
Arrow Electronics, Inc. 101,100 5,370,937
Avnet, Inc. 173,700 9,987,750
Intel Corp. 100,800 14,269,500
Lucent Technologies, Inc. 50,221 3,619,051
-----------
33,247,238
-----------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
ENERGY SERVICES -- 0.9%
Ensco International, Inc. 134,900 $ 7,115,975
-----------
FOOD & BEVERAGES -- 4.0%
Conagra, Inc. 71,900 4,610,587
Dean Foods Co. 398,700 16,097,513
Smithfield Foods, Inc.* 196,150 12,063,225
-----------
32,771,325
-----------
HEALTH CARE SERVICES -- 3.8%
Beverly Enterprises, Inc.* 779,100 12,660,375
Columbia HCA Healthcare Corp. 195,300 7,677,731
Tenet Healthcare Corp.* 380,700 11,254,444
-----------
31,592,550
-----------
INSURANCE -- 6.8%
Allstate Corp. 40,554 2,960,442
American Bankers Insurance Co. 178,800 11,286,750
Cigna Corp. 99,600 17,679,000
Conseco, Inc. 348,800 12,905,600
Loews Corp. 31,300 3,133,913
Travelers Group, Inc. 131,000 8,261,188
-----------
56,226,893
-----------
LEISURE -- 0.9%
Brunswick Corp. 239,700 7,490,625
-----------
MACHINERY & EQUIPMENT -- 2.8%
Harnischfeger Industries, Inc. 245,700 10,196,550
Mark IV Industries, Inc. 207,885 4,989,240
Timken Co. 210,000 7,468,125
-----------
22,653,915
-----------
MEDIA -- 1.1%
Omnicom Group, Inc. 152,100 9,373,163
-----------
METALS -- 1.3%
Asarco, Inc. 202,000 6,186,250
USX-U.S. Steel Group, Inc. 130,500 4,575,656
-----------
10,761,906
-----------
MISCELLANEOUS FINANCE -- 4.6%
Bear Stearns Companies, Inc. 419,950 14,357,041
Lehman Brothers Holdings, Inc. 102,800 4,163,400
Merrill Lynch, Pierce, Fenner, Inc. 251,000 14,965,875
Morgan Stanley Dean Witter
Discover & Co. 99,300 4,276,106
-----------
37,762,422
-----------
OFFICE EQUIPMENT -- 8.2%
Compaq Computer, Inc.* 113,400 11,254,950
Dell Computer, Inc.* 128,600 15,094,425
Gateway 2000, Inc.* 186,000 6,033,375
Harris Corp. 83,475 7,011,900
International Business
Machines, Inc. 175,600 15,836,925
Western Digital Corp.* 389,800 12,327,425
-----------
67,559,000
-----------
See Notes to Financial Statements.
37
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
OIL & GAS -- 7.6%
Exxon Corp. 103,300 $ 6,352,950
Texaco, Inc. 249,300 27,111,375
Ultramar Diamond Shamrock Corp. 219,600 7,164,450
USX-Marathon Group, Inc. 742,500 21,439,688
-----------
62,068,463
-----------
RETAIL -- 6.2%
Dayton Hudson Corp. 188,800 10,041,800
Ross Stores, Inc. 129,500 4,224,938
TJX Companies, Inc. 914,000 24,106,750
Waban, Inc.* 269,000 8,658,438
Woolworth Corp.* 177,600 4,262,400
-----------
51,294,326
-----------
RETAIL - FOOD -- 3.8%
Kroger Co.* 208,000 6,032,000
Safeway, Inc.* 539,600 24,889,050
-----------
30,921,050
-----------
TELEPHONES -- 3.0%
British Telecommunications 333,100 24,732,675
-----------
THRIFT INSTITUTIONS -- 3.3%
Golden West Financial Corp. 119,700 8,379,000
Washington Mutual, Inc. 319,600 19,096,100
-----------
27,475,100
-----------
TRUCKING -- 1.4%
GATX Corp. 79,100 4,568,025
Paccar, Inc. 153,500 7,118,563
-----------
11,686,588
-----------
TOTAL COMMON STOCK
(Cost $624,042,381) 812,430,448
-----------
SHARES VALUE(DAGGER)
-------- ------------
TEMPORARY INVESTMENTS -- 1.2%
Dreyfus Cash Management Plus #719 4,944,900 $ 4,944,900
Goldman Sachs Financial Square
Money Market Portfolio 4,907,605 4,907,605
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $9,852,505) 9,852,505
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $633,894,886) 822,282,953
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES-- 0.0% 367,363
------------
NET ASSETS -- 100.0%
Applicable to 45,290,498 and 582,518
shares outstanding of Institutional Class
and Class A, respectively, $.001 par value;
200,000,000 authorized shares (Note 9) $822,650,316
============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER INSTITUTIONAL CLASS SHARE
($812,204,288/45,290,498) $17.93
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE
($10,446,028/582,518) $17.93
======
MAXIMUM PUBLIC OFFERING PRICE
PER CLASS A SHARE (NOTE 6) $18.77
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
38
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 97.6%
AEROSPACE -- 6.6%
Northrop Grumman Corp. 11,900 $ 1,044,969
Primex Technologies Inc. 1,040 22,230
Textron, Inc. 2,600 172,575
United Technologies Corp. 14,400 1,195,200
-----------
2,434,974
-----------
AIR TRANSPORT -- 3.5%
AMR Corp.* 7,500 693,750
British Airways 3,700 425,269
UAL Corp.* 2,500 178,906
-----------
1,297,925
-----------
ALCOHOLIC BEVERAGES & TOBACCO -- 3.0%
Philip Morris Companies, Inc. 25,200 1,118,250
-----------
APPAREL, TEXTILES -- 1.2%
VF Corp. 5,200 440,700
-----------
AUTO RELATED -- 1.2%
Goodyear Tire & Rubber Co. 6,900 436,856
-----------
AUTOS -- 1.8%
Ford Motor Co. , Inc. 17,200 649,300
-----------
BANKS -- 10.2%
Bankers Trust New York Corp. 10,100 878,700
Chase Manhattan Corp. 7,800 757,087
First Chicago NBD Corp. 16,471 996,495
Keycorp 8,700 486,112
Mellon Bank Corp. 15,200 685,900
-----------
3,804,294
-----------
BUSINESS SERVICES -- 0.4%
Deluxe Corp. 4,000 136,500
-----------
CHEMICALS -- 1.1%
Olin Corp. 10,400 406,250
-----------
DRUGS -- 6.0%
American Home Products Corp. 4,200 321,300
Bristol-Myers Squibb Co. 23,800 1,927,800
-----------
2,249,100
-----------
ELECTRIC & GAS -- 7.5%
Entergy Corp.* 7,700 210,787
GPU, Inc. 9,000 322,875
Long Island Lighting 7,000 161,000
Nicor, Inc. 3,000 107,625
Pacific Enterprises 20,400 685,950
Public Service Co. Colorado 15,400 639,100
Texas Utilities Co. 12,800 440,800
Unicom Corp. 10,400 231,400
-----------
2,799,537
-----------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
ELECTRICAL -- 1.6%
General Electric Co. 5,800 $ 379,175
Honeywell, Inc. 2,800 212,450
-----------
591,625
-----------
ELECTRONICS -- 3.0%
Intel Corp. 7,900 1,118,344
-----------
INSURANCE -- 5.9%
Cigna Corp. 7,700 1,366,750
Conseco, Inc. 18,600 688,200
Lincoln National Corp. 2,100 135,187
-----------
2,190,137
-----------
MACHINERY & EQUIPMENT -- 1.8%
Deere & Co. 7,800 428,025
Timken Co. 7,000 248,937
-----------
676,962
-----------
METALS -- 2.1%
USX-U.S. Steel Group, Inc. 22,700 795,919
-----------
MISCELLANEOUS FINANCE -- 3.1%
Merrill Lynch, Pierce, Fenner, Inc. 12,600 751,275
Student Loan Marketing Association 3,200 406,400
-----------
1,157,675
-----------
OFFICE EQUIPMENT -- 11.8%
Compaq Computer, Inc.* 5,700 565,725
Dell Computer, Inc.* 5,000 586,875
Harris Corp. 4,100 344,400
International Business Machines, Inc. 7,200 649,350
Microsoft Corp. 8,600 1,087,362
NCR Corp.* 637 18,951
Seagate Technologies* 17,800 626,338
Sun Microsystems, Inc.* 2,200 81,813
Western Digital Corp.* 3,200 101,200
Xerox Corp. 4,100 323,388
-----------
4,385,402
-----------
OIL & GAS -- 11.1%
Atlantic Richfield Co. 8,600 606,300
Exxon Corp. 26,600 1,635,900
Phillips Petroleum Co. 25,700 1,124,375
Sun Co., Inc. 6,155 190,805
Texaco, Inc. 5,400 587,250
-----------
4,144,630
-----------
RETAIL -- 5.9%
Dayton Hudson Corp. 11,600 616,975
Penney, J.C. Co. 2,700 140,906
Sears, Roebuck & Co. 21,000 1,128,750
Waban, Inc.* 9,500 305,781
-----------
2,192,412
-----------
See Notes to Financial Statements.
39
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
RETAIL - FOOD -- 0.3%
Safeway, Inc.* 2,500 $ 115,313
-----------
TELEPHONES -- 7.8%
AT&T Corp. 10,200 357,638
BCE, Inc. 20,600 576,800
British Telecommunications 6,300 467,775
GTE Corp. 12,100 530,888
NYNEX Corp. 16,600 956,575
-----------
2,889,676
-----------
THRIFT INSTITUTIONS -- 0.7%
Great Western Financial Corp.* 5,000 268,750
-----------
TOTAL COMMON STOCK
(Cost $24,875,836) 36,300,531
-----------
TEMPORARY INVESTMENTS -- 2.2%
Dreyfus Cash Management Plus #719 428,130 428,130
Goldman Sachs Financial Square
Money Market Portfolio 405,252 405,252
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $833,382) 833,382
-----------
TOTAL INVESTMENTS -- 99.8%
(Cost $25,709,218) 37,133,913
-----------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.2% 65,854
-----------
NET ASSETS -- 100.0%
Applicable to 2,291,995 and 30,366
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 9) $37,199,767
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($36,713,373/2,291,995) $16.02
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE ($486,394/30,366) $16.02
======
MAXIMUM PUBLIC OFFERING PRICE
PER CLASS A SHARE (NOTE 6) $16.77
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
40
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK -- 97.6%
AEROSPACE -- 3.4%
Textron, Inc. 25,000 $ 1,659,375
United Technologies Corp. 20,000 1,660,000
-----------
3,319,375
-----------
ALCOHOLIC BEVERAGES & TOBACCO -- 2.6%
Philip Morris Companies, Inc. 43,000 1,908,125
RJR Nabisco Holdings Corp. 20,000 660,000
-----------
2,568,125
-----------
APPAREL, TEXTILES -- 1.1%
Fruit of the Loom, Inc.* 35,000 1,085,000
-----------
AUTO RELATED -- 0.4%
ITT Industries, Inc. 16,854 433,990
-----------
BANKS -- 4.5%
BankAmerica Corp. 14,000 903,875
Bank of Boston Corp. 12,100 871,956
Citicorp 5,000 602,812
Southtrust Corp. 20,000 827,500
State Street Boston Corp. 25,000 1,156,250
-----------
4,362,393
-----------
BUSINESS SERVICES -- 0.9%
Computer Sciences * 12,000 865,500
-----------
CHEMICALS -- 0.9%
Dow Chemical Co. 10,000 871,250
-----------
COSMETICS & SOAP -- 3.5%
Gillette Co. 18,000 1,705,500
Procter & Gamble Co. 12,000 1,695,000
-----------
3,400,500
-----------
DRUGS -- 13.2%
Abbott Laboratories, Inc. 35,332 2,358,411
American Home Products Corp. 10,000 765,000
Amgen* 7,700 447,081
Bristol-Myers Squibb Co. 27,000 2,187,000
Dura Pharmaceuticals* 15,000 596,250
Johnson & Johnson 23,600 1,519,250
Merck & Co., Inc. 6,000 621,000
Pfizer, Inc. 12,000 1,434,000
Schering Plough Corp. 62,400 2,987,400
-----------
12,915,392
-----------
ELECTRICAL -- 4.9%
General Electric Co. 50,000 3,268,750
Honeywell, Inc. 20,000 1,517,500
-----------
4,786,250
-----------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
ELECTRONICS -- 5.7%
Andrew Corp.* 18,412 $ 515,536
Intel Corp. 21,500 3,043,594
Lucent Technologies, Inc. 9,139 658,579
Tellabs, Inc. * 24,000 1,338,000
-----------
5,555,709
-----------
FOOD & BEVERAGES -- 6.7%
Archer Daniels Midland Co. 25,000 587,500
Coca Cola Co. 14,000 945,000
Coca-Cola Enterprises 30,000 690,000
Conagra, Inc. 26,700 1,712,137
IBP, Inc. 30,000 697,500
Pepsico, Inc. 26,000 976,625
Smithfield Foods, Inc.* 15,000 922,500
-----------
6,531,262
-----------
FOREST PRODUCTS & PAPER -- 1.8%
Fort Howard Corp. 20,000 1,011,250
Kimberly-Clark Corp. 16,000 796,000
-----------
1,807,250
-----------
HEALTH CARE SERVICES -- 1.8%
Columbia HCA Healthcare Corp. 25,050 984,778
Medtronic, Inc. 10,000 810,000
-----------
1,794,778
-----------
HOTELS & RESTAURANTS -- 0.6%
McDonald's Corp. 11,972 578,397
-----------
INSURANCE -- 9.9%
AMBAC, Inc. 16,500 1,260,187
American Bankers Insurance Co. 17,500 1,104,688
American International Group, Inc. 15,032 2,245,405
Conseco, Inc. 25,000 925,000
Reliastar Financial Corp. 7,500 548,438
Sunamerica, Inc. 20,000 975,000
Travelers Group, Inc. 33,333 2,102,062
Vesta Insurance Group, Inc. 12,150 525,488
-----------
9,686,268
-----------
LEISURE -- 0.7%
Mattel, Inc. 20,062 679,600
-----------
MACHINERY & EQUIPMENT -- 4.0%
Applied Materials, Inc.* 7,500 530,625
Deere & Co. 15,000 823,125
Harnischfeger Industries, Inc. 19,000 788,500
Illinois Tool Works, Inc. 14,000 699,125
Parker-Hannifin Corp. 18,000 1,092,375
-----------
3,933,750
-----------
See Notes to Financial Statements.
41
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
MISCELLANEOUS FINANCE -- 2.3%
Beneficial Corp. 8,000 $ 568,500
Federal Home Loan Mortgage Corp. 20,000 687,500
Student Loan Marketing Association 7,500 952,500
-----------
2,208,500
-----------
OFFICE EQUIPMENT -- 10.7%
Cisco Systems, Inc.* 22,500 1,510,313
Compaq Computer, Inc,* 12,500 1,240,625
Gateway 2000, Inc.* 24,000 778,500
Hewlett Packard Co. 25,000 1,400,000
International Business Machines, Inc. 16,000 1,443,000
Microsoft Corp.* 22,000 2,781,625
Seagate Technologies* 16,000 563,000
Xerox Corp. 10,000 788,750
-----------
10,505,813
-----------
OIL & GAS -- 7.1%
Atlantic Richfield Co. 10,000 705,000
Coastal Corp. 25,000 1,329,688
Global Marine, Inc. 35,000 813,750
Phillips Petroleum Co. 50,000 2,187,500
Tidewater, Inc. 27,000 1,188,000
Tosco Corp. 26,000 778,375
-----------
7,002,313
-----------
RETAIL -- 5.0%
Costco Companies, Inc. 15,000 493,125
Dayton Hudson Corp. 23,000 1,223,313
Sears, Roebuck & Co. 25,000 1,343,750
TJX Companies, Inc. 40,000 1,055,000
Walgreen Co. 15,000 804,375
-----------
4,919,563
-----------
RETAIL - FOOD -- 2.5%
Safeway, Inc.* 40,800 1,881,900
Sysco Corp. 15,400 562,100
-----------
2,444,000
-----------
TELEPHONES -- 0.9%
GTE Corp. 20,000 877,500
-----------
THRIFT INSTITUTIONS -- 1.8%
Washington Mutual, Inc. 30,000 1,792,500
-----------
TRUCKING -- 0.7%
Ryder System, Inc. 20,000 660,000
-----------
TOTAL COMMON STOCK
(Cost $58,139,077) 95,584,978
-----------
SHARES VALUE(DAGGER)
-------- ------------
TEMPORARY INVESTMENTS -- 2.0%
Dreyfus Cash Management Plus #719 1,058,759 $ 1,058,759
Goldman Sachs Financial Square
Money Market Portfolio 927,902 927,902
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $1,986,661) 1,986,661
-----------
TOTAL INVESTMENTS -- 99.6%
(Cost $60,125,738) 97,571,639
-----------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.4% 374,599
-----------
NET ASSETS -- 100.0%
Applicable to 4,347,808 and 38,006
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively,$.001 par value (Note 9) $97,946,238
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($97,097,506/4,347,808) $22.33
======
NET ASSET VALUE AND REDEMPTION PRICE
PER CLASS A SHARE ($848,732/38,006) $22.33
======
MAXIMUM PUBLIC OFFERING PRICE
PER CLASS A SHARE (NOTE 6) $23.38
======
- ------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
42
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK -- 89.2%
AEROSPACE -- 1.6%
Midwest Express Holdings, Inc. 25,000 $ 684,375
Thiokol Corp. 40,000 2,800,000
-----------
3,484,375
-----------
AIR TRANSPORT -- 0.5%
Expeditors International, Inc. 35,000 993,125
-----------
ALCOHOLIC BEVERAGES & TOBACCO-- 0.5%
Robert Mondavi Corp.* 25,000 1,175,000
-----------
APPAREL, TEXTILES -- 1.7%
Nautica Enterprises, Inc.* 40,000 1,057,500
Springs Industries, Inc. - Class A 23,100 1,218,525
Stride Rite Corp. 36,500 469,937
Vans, Inc.* 20,000 301,250
Wolverine World Wide, Inc. 19,500 592,313
-----------
3,639,525
-----------
AUTO RELATED -- 1.3%
Barnes Group, Inc. 55,000 1,629,375
Breed Technologies, Inc. 8,900 204,700
Mascotech, Inc.* 40,000 835,000
Myer Industries, Inc. 5,000 84,375
-----------
2,753,450
-----------
AUTOS -- 0.1%
Navistar International Corp. 10,000 172,500
-----------
BANKS -- 5.3%
City National Corp. 10,000 240,625
Commerce Bancshares, Inc. 51,051 2,310,058
Compass Bancshares, Inc. 25,000 837,500
Corus Bankshares, Inc. 17,000 480,250
Hibernia Corp. 25,000 348,437
Keystone Financial, Inc. 10,000 311,250
North Fork Bancorporation, Inc. 50,000 1,068,750
Old Kent Financial Corp. 52,498 2,828,381
Provident Bancorp Inc. 11,250 478,125
Southtrust Corp. 17,400 719,925
USBancorp - PA , Inc. 10,000 538,750
West America Bancorporation 11,100 835,275
Zions Bancorp* 15,000 562,500
-----------
11,559,826
-----------
BUSINESS EQUIPMENT & SERVICES -- 0.0%
Comfort Systems USA, Inc. 4,500 70,312
-----------
BUSINESS SERVICES -- 8.8%
ABR Information Services, Inc.* 10,000 288,750
Aspen Technology, Inc.* 30,000 1,126,875
CDI Corp.* 10,000 416,875
Checkpoint Systems, Inc.* 62,000 995,875
Complete Business Solutions, Inc. 20,000 480,000
Computer Task Group, Inc. 20,000 745,000
Corestaff, Inc.* 55,000 1,485,000
Corrections Corp.* 40,000 1,590,000
G. & K. Services, Inc.* 19,900 731,325
SHARES VALUE(DAGGER)
-------- -----------
COMMON STOCK (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Gartner Group, Inc.* 40,000 $ 1,435,000
Ha-Lo Industries Corp.* 29,950 696,337
Henry (Jack) & Associates, Inc. 45,000 1,091,250
Information Management Resources, Inc.* 8,000 365,000
Mastech Corp.* 20,000 400,000
Merrill Corp.* 32,000 1,144,000
Norrell Corp.* 27,600 910,800
Remedy Corp.* 14,000 557,375
Reynolds & Reynolds Co. 159,000 2,504,250
Robert Half International, Inc.* 10,000 470,625
Shared Medical Systems Corp. 18,000 967,500
Sodak Gaming, Inc.* 50,000 731,250
-----------
19,133,087
-----------
CHEMICALS -- 1.8%
Ferro Corp. 49,645 1,839,968
Hexcel Corp.* 10,000 172,500
Robbins & Myers, Inc. 20,000 655,000
Tredegar Industries, Inc. 1,500 83,250
Valspar Corp. 40,000 1,185,000
-----------
3,935,718
-----------
CONSTRUCTION -- 2.0%
Apogee Enterprises, Inc. 20,000 427,500
Centex Corp. 35,240 1,431,625
Fleetwood Enterprises, Inc. 14,925 444,952
Toll Brothers, Inc. 40,000 735,000
Triangle Pacific Corp.* 45,000 1,417,500
-----------
4,456,577
-----------
CONTAINERS -- 0.6%
Bemis Co., Inc. 16,000 692,000
Sealed Air Corp.* 15,000 712,500
-----------
1,404,500
-----------
COSMETICS & SOAP -- 0.6%
Alberto-Culver Co. - Class A 50,000 1,165,625
Alberto-Culver Co. - Class B 5,200 145,600
-----------
1,311,225
-----------
DRUGS -- 1.8%
Bergen Brunswig Corp. 74,100 2,065,537
Jones Medical Industries, Inc.* 27,500 1,306,250
Kv Pharma Co-Cl A 24,000 397,500
Kv Pharma Co-Cl B 6,000 102,000
-----------
3,871,287
-----------
ELECTRIC & GAS -- 0.3%
Piedmont Natural Gas Co., Inc. 26,100 670,444
-----------
ELECTRICAL -- 0.6%
Credence Systems* 25,000 748,437
Thomas Industries, Inc. 21,000 603,750
-----------
1,352,187
-----------
See Notes to Financial Statements.
43
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
ELECTRONICS -- 8.1%
Altera Corp. 10,500 $ 530,250
Analog Devices, Inc.* 2 53
Apex PC Solutions, Inc. 48,000 942,000
BMC Industries, Inc. 25,000 856,250
Cable Design Technologies, Inc.* 17,500 515,156
CFM Technologies, Inc.* 50,000 1,631,250
Cognex Corp. 35,000 927,500
Dallas Semiconductor Corp. 25,000 981,250
Digital Lightwave, Inc. 20,000 170,000
Input/Output, Inc.* 7,500 135,937
Lecroy Corp. 5,000 183,750
Logicon, Inc. 50,400 2,671,200
Micrel, Inc.* 25,000 1,262,500
Microchip Technology, Inc.* 45,000 1,335,937
Novatel, Inc. 60,000 442,500
Photronics Labs Inc.* 25,000 1,181,250
Sanmina Corp.* 15,000 937,500
Storage Dimensions, Inc. 25,000 126,562
Tracor, Inc. 25,000 621,875
Vitesse Semiconductors Corp.* 62,450 2,037,431
-----------
17,490,151
-----------
ENERGY SERVICES -- 0.1%
Global Industries Ltd.* 10,000 232,500
-----------
FINANCIAL SERVICES -- 0.0%
New Century Financial Corp. 3,800 54,150
-----------
FOOD & BEVERAGE -- 1.1%
Delta & Pine Land Co. 20,000 712,500
Morningstar Group, Inc.* 55,100 1,618,562
-----------
2,331,062
-----------
FOREST PRODUCTS & PAPER -- 1.8%
Buckeye Cellulose, Inc. 25,000 843,750
Caraustar Industries, Inc. 27,400 945,300
Mosinee Paper, Inc. 43,500 1,049,437
Wausau Paper Mills Co. 52,493 990,805
-----------
3,829,292
-----------
HEALTH CARE SERVICES -- 8.1%
Boston Scientific Corp.* 8,600 528,362
Cytyc Corp. 14,000 378,000
Depuy, Inc.* 25,000 575,000
Hologic, Inc.* 50,000 1,331,250
McKesson Corp. 40,000 3,100,000
Mentor Corp. 64,600 1,913,775
Millipore Corp. 40,000 1,760,000
Paraxel International Corp.* 40,000 1,250,000
Safeskin Corp.* 51,000 1,501,313
Tecnol Medical Products, Inc.* 40,050 881,100
Total Renal Care Hldgs.* 40,000 1,607,500
Universal Health Services, Inc.* 64,400 2,479,400
Ventana Medical Systems, Inc.* 25,000 306,250
-----------
17,611,950
-----------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
HOTELS & RESTAURANTS -- 1.9%
Boston Chicken, Inc* 7,500 $ 104,531
CKE Restaurants, Inc. 26,200 828,575
HFS, Inc.* 16,500 957,000
Prime Hospitality Corp.* 25,000 493,750
Promus Hotel Corp. 30,900 1,197,375
Ryan's Family Steak Houses, Inc.* 65,000 552,500
-----------
4,133,731
-----------
HOUSEHOLD GOODS -- 2.0%
Blyth Industries, Inc.* 22,500 759,375
Bush Industries, Inc. 4,500 106,875
Central Garden & Pet Co. 15,000 371,250
First Brands Corp. 53,400 1,224,863
La-Z-Boy Chair Co. 20,000 720,000
Miller (Herman) Inc. 32,200 1,151,150
-----------
4,333,513
-----------
INSURANCE -- 3.9%
American General Corp. 24,905 1,189,214
Capital Re Corp. 4,200 224,700
Conseco, Inc. 43,770 1,619,490
Executive Risk, Inc. 11,500 598,000
Old Republic International Corp. 100,000 3,031,250
Vesta Insurance Group, Inc. 25,000 1,081,250
Washington National Corp. 22,000 627,000
-----------
8,370,904
-----------
LEISURE -- 0.4%
K2, Inc. 25,000 792,188
-----------
MACHINERY & EQUIPMENT -- 5.0%
ADC Telecommunications, Inc.* 103,600 3,457,650
Crane Co. 20,250 846,703
Graco, Inc. 1 30
Griffon Corp.* 58,000 793,875
Idex Corp. 52,500 1,732,500
Scotsman Industries, Inc. 15,000 427,500
Smith International, Inc. 35,000 2,126,250
SPS Technologies, Inc. 10,000 707,500
Stanford Telcommunications, Inc.* 50,000 756,250
-----------
10,848,258
-----------
MEDIA -- 2.7%
Central Newspapers, Inc. 10,000 716,250
Omnicom Group, Inc. 36,000 2,218,500
Outdoor Systems, Inc. 14,000 532,000
Pulitzer Publishing Co. 10,000 530,000
Univision Communications, Inc.* 25,000 978,125
VDI Media, Inc. 23,000 258,750
Westwood One* 23,500 754,938
-----------
5,988,563
-----------
METALS -- 3.1%
Atchison Casting Corp. 15,000 249,375
Chase Brass Inds., Inc. 10,000 243,750
Gibraltar Steel Corp.* 20,000 450,000
See Notes to Financial Statements.
44
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
METALS (CONTINUED)
Kaynar Technologies, Inc. 23,000 $ 416,875
Precision Castparts Corp. 60,000 3,577,500
Reliance Steel & Aluminum Corp. 9,000 234,000
Valmont Industries Inc. 40,000 760,000
Wyman-Gordon Co.* 32,300 872,100
-----------
6,803,600
-----------
MISCELLANEOUS FINANCE -- 4.1%
Alex. Brown, Inc. 15,550 1,098,219
Americredit Corp.* 67,000 1,407,000
Comdisco, Inc. 56,250 1,462,500
First Industrial Realty Trust, Inc. 10,000 292,500
First Union Real Estate, Inc. 15,000 211,875
Healthcare Financial Partners, Inc.* 32,500 654,063
Innkeepers USA Trust, Inc.* 21,500 322,500
Kilroy Realty Corp. 10,000 252,500
Pacific Gulf Properties, Inc. 15,500 341,000
Public Storage, Inc. 10,000 292,500
Quick & Reilly Group, Inc. 70,695 1,643,659
Redwood Trust, Inc. 15,000 697,500
TCF Financial Corp. 3,883 191,723
-----------
8,867,539
-----------
OFFICE EQUIPMENT -- 4.1%
Black Box Corp.* 20,000 803,750
Dialogic Corp.* 60,000 1,597,500
Electronics for Imaging, Inc.* 10,000 471,875
Encad, Inc.* 10,000 415,000
Jet Fax, Inc. 20,000 150,000
McAfee Associates, Inc. 22,500 1,417,500
MTS Systems Corp. 47,400 1,404,225
Quantum Corp.* 36,000 731,250
Safeguard Scientific, Inc. 20,000 636,250
Sterling Commerce, Inc. 10,600 348,475
Systemsoft Corp.* 20,000 212,500
Tech Data Corp.* 25,000 784,375
-----------
8,972,700
-----------
OIL & GAS -- 4.6%
BJ Services Co. 20,000 1,072,500
Chesapeake Energy Corp.* 45,000 441,563
Costilla Energy, Inc.* 15,000 188,438
EVI, Inc. 15,000 630,000
Newfield Exploration Co.* 82,600 1,652,000
North Carolina Natural Gas, Inc. 25,000 834,375
Nuevo Energy Co.* 36,000 1,476,000
Patterson Energy, Inc. 9,400 424,175
Pride Petroleum Services, Inc. 10,000 239,375
Stone Energy Corp.* 10,000 273,750
Tosco Corp. 50,000 1,496,875
United Meridian Corp.* 43,500 1,305,000
-----------
10,034,051
-----------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
POLLUTION CONTROL -- 0.4%
U. S. Filter Corp.* 25,000 $ 681,250
Waterlink, Inc. 9,600 124,800
-----------
806,050
-----------
RETAIL -- 5.8%
Amazon.com, Inc. 200 3,725
Arbor Drugs, Inc. 100,000 2,006,250
Burlington Coat Factory, Inc. 27,000 526,500
Eagle Hardware & Garden, Inc.* 50,000 1,140,625
Fred. Meyer, Inc. 5,000 258,438
Just for Feet, Inc.* 26,000 451,750
Neiman-Marcus Group 48,000 1,260,000
Paul Harris Stores, Inc.* 10,000 166,250
Pier 1 Imports, Inc. 22,000 583,000
Regis Corp. 42,500 988,125
Ross Stores, Inc. 17,500 570,938
The Sports Authority, Inc.* 58,000 1,127,375
Tiffany & Co., Inc* 55,000 2,540,313
U.S. Office Products Co. 30,000 911,250
-----------
12,534,539
-----------
RETAIL - FOOD -- 1.3%
Dominick's Supermarkets, Inc.* 70,000 1,863,750
Foodmaker, Inc. 30,000 491,250
Ruddick Corp. 29,400 485,100
-----------
2,840,100
-----------
TECHNOLOGY -- 0.3%
Comverse Technology, Inc.* 12,000 625,500
-----------
TELECOMMUNICATIONS -- 0.4%
Gilat Satellite Networks Ltd. 15,000 489,375
Pairgain Technologies, Inc.* 20,000 310,000
-----------
799,375
-----------
TELEPHONE -- 0.4%
ACC Corp.* 3,750 115,781
LCI International, Inc.* 17,800 389,375
Tel-Save Holdings, Inc. 20,000 302,500
-----------
807,656
-----------
THRIFT INSTITUTIONS -- 2.1%
Albank Financial Corp. 15,000 592,500
MAF Bancorp,Inc 10,000 418,750
Onbancorp, Inc. 50,100 2,548,838
RCSB Financial, Inc. 20,000 955,000
-----------
4,515,088
-----------
TOTAL COMMON STOCK
(Cost $140,082,165) 193,605,598
-----------
See Notes to Financial Statements.
45
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
PREFERRED STOCK -- 0.8%
Cross Timbers Oil Series A Pfd. 36,120 $ 1,119,720
Excel Realty, Inc. 20,000 545,000
------------
TOTAL PREFERRED STOCK
(Cost $1,487,859) 1,664,720
------------
AGENCY OBLIGATIONS -- 7.1%
Federal National Mortgage Association
Discount Note
5.430% 07/07/97 10,500 10,490,498
5.430% 07/18/97 5,000 4,987,179
------------
TOTAL AGENCY OBLIGATIONS
(Cost $15,477,677) 15,477,677
------------
TEMPORARY INVESTMENTS -- 7.8%
Dreyfus Cash Management Plus #719 8,416,512 8,416,512
Goldman Sachs Financial Square
Money Market Portfolio 8,398,640 8,398,640
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $16,815,152) 16,815,152
------------
TOTAL INVESTMENTS -- 104.9%
(Cost $173,862,853) 227,563,147
------------
LIABILITES IN EXCESS OF
OTHER ASSETS -- (4.9%) (10,585,897)
------------
NET ASSETS -- 100.0%
Applicable to 12,768,572 and 47,070
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par (Note 9) $216,977,250
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($216,181,236/12,768,572) $16.93
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE ($796,014/47,070) $16.91
======
MAXIMUM PUBLIC OFFERING PRICE
PER CLASS A SHARE (NOTE 6) $17.71
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
46
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK -- 93.0%
AEROSPACE -- 4.2%
Esterline Technologies Corp. 40,800 $1,453,500
Gencorp, Inc. 46,800 1,082,250
----------
2,535,750
----------
AIR TRANSPORT -- 2.3%
Continental Airlines, Inc. Class B* 39,400 1,376,537
----------
ALCOHOLIC BEVERAGES & TOBACCO -- 0.3%
Universal Corp. 5,200 165,100
----------
APPAREL, TEXTILES -- 1.5%
Springs Industries, Inc. - Class A 17,500 923,125
----------
AUTO RELATED -- 0.8%
Clarcor, Inc. 20,700 512,325
----------
BANKS -- 6.1%
CCB Financial Corp. 10,900 797,062
Compass Bancshares, Inc. 30,350 1,016,725
Old Kent Financial Corp. 35,608 1,918,416
----------
3,732,203
----------
BUSINESS SERVICES -- 3.6%
Aviall, Inc.* 51,500 721,000
Employee Solutions, Inc. 20,700 114,497
Franklin Covey Co. 33,100 837,844
Selective Insurance Group, Inc. 10,400 500,500
----------
2,173,841
----------
CHEMICALS -- 1.0%
Cytec Industries,Inc 15,500 579,312
----------
CONSTRUCTION -- 6.9%
Centex Corp. 34,500 1,401,562
Fleetwood Enterprises 22,800 679,725
Lone Star Industries, Inc. 24,500 1,110,156
Vulcan Materials, Inc. 13,200 1,036,200
----------
4,227,643
----------
CONTAINERS -- 0.6%
Libbey, Inc. 10,200 357,000
----------
COSMETICS & SOAP -- 1.4%
NBTY, Inc. 31,100 870,800
----------
ELECTRIC & GAS -- 5.0%
Central Hudson Gas & Electric Corp. 15,900 547,556
Central Louisiana Electric Co. 11,300 317,812
IES Industries, Inc. 20,900 616,550
Interstate Power Co. 10,500 300,562
Oklahoma Gas & Electric Co. 8,300 377,650
Piedmont Natural Gas Co., Inc. 20,800 534,300
Washington Water Power Co. 18,100 355,213
----------
3,049,643
----------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
ELECTRONICS -- 8.9%
Activision Inc 17,100 $ 243,675
Electro Scientific Industries, Inc. 9,000 376,875
Harman International Industries, Inc. 28,000 1,179,500
Hutchinson Technology, Inc.* 45,500 1,109,063
Marshall Industries, Inc. 54,800 2,041,300
Wyle Electronics 11,400 450,300
----------
5,400,713
----------
ENERGY SERVICES -- 0.6%
Zeigler Coal Holding Co. 16,600 388,025
----------
FOREST PRODUCTS & PAPER -- 1.0%
Caraustar Industries, Inc. 17,800 614,100
----------
HEALTH CARE SERVICES -- 6.1%
Integrated Health Services, Inc. 15,600 600,600
Living Centers of America, Inc. 41,500 1,639,250
U.S. Surgical Corp. 7,600 283,100
Universal Health Services, Inc.* 30,872 1,188,572
----------
3,711,522
----------
HOTELS & RESTAURANTS -- 2.1%
HFS, Inc.* 14,287 828,646
Luby's Cafeterias, Inc. 22,000 438,625
----------
1,267,271
----------
HOUSEHOLD GOODS -- 1.1%
La-Z-Boy Chair Co. 17,800 640,800
----------
INSURANCE -- 11.4%
American International Group, Inc. 2,000 298,750
Blanch E. W. Holdings 19,700 525,744
First American Financial Corp. 35,300 1,376,700
Gallagher (Arthur J.) & Co. 53,900 2,034,725
Old Republic International Corp. 52,770 1,599,591
Orion Capital Corp. 6,300 464,625
Protective Life Corp. 13,400 673,350
----------
6,973,485
----------
LEISURE -- 3.0%
Brunswick Corp. 59,600 1,862,500
----------
MACHINERY & EQUIPMENT -- 5.9%
Agco, Inc. 25,900 930,781
Crane Co. 23,750 993,047
Graco, Inc. 55,697 1,677,872
----------
3,601,700
----------
MEDIA -- 1.8%
King World Productions, Inc.* 31,200 1,092,000
----------
METALS -- 2.7%
Cleveland Cliffs, Inc. 12,700 517,525
Reliance Steel & Aluminum Corp. 44,400 1,154,400
----------
1,671,925
----------
See Notes to Financial Statements.
47
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
MISCELLANEOUS FINANCE -- 2.9%
Eaton Vance Corp. 22,800 $ 634,125
Lehman Brothers Holdings, Inc. 28,200 1,142,100
------------
1,776,225
------------
OFFICE EQUIPMENT -- 3.6%
Applied Magnetics, Inc. 10,300 233,038
HMT Technology Corp. 52,600 677,225
Storage Technology Corp.* 20,700 921,150
Stormedia, Inc. 16,000 114,000
The Learning Company, Inc.* 24,300 227,813
------------
2,173,226
------------
OIL & GAS -- 1.4%
Oryx Energy Co.* 41,600 878,800
------------
RETAIL -- 5.3%
Carson Pirie Scott & Co. 40,900 1,298,575
Shopko Stores, Inc. 35,300 900,150
Waban, Inc.* 32,100 1,033,219
------------
3,231,944
------------
RETAIL - FOOD -- 0.6%
Ruddick Corp. 22,000 363,000
------------
TRUCKING -- 0.9%
GATX Corp. 9,500 548,625
------------
TOTAL COMMON STOCK
(Cost $41,594,713) 56,699,140
------------
TEMPORARY INVESTMENTS -- 7.0%
Dreyfus Cash Management Plus #719 2,147,126 2,147,126
Goldman Sachs Financial Square
Money Market Portfolio 2,142,218 2,142,218
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $4,289,344) 4,289,344
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $45,884,057) 60,988,484
------------
LIABILITIES IN EXCESS OF
OTHER ASSETS-- 0.0% (2,272)
------------
NET ASSETS -- 100.0%
Applicable to 1,942,345 shares of
beneficial interest outstanding of
Institutional Class $.001 par value
(Note 9)(DOUBLE DAGGER) $ 60,986,212
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($60,986,212/1,942,345) $31.40
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
(DOUBLE DAGGER) At 6/30/97 Class A shares had not yet commenced operations
* Non-income producing security.
See Notes to Financial Statements.
48
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK -- 98.5%
AEROSPACE -- 2.5%
Allegheny Teledyne, Inc. 6,695 $ 180,765
Allied Signal, Inc. 10,800 907,200
B.F. Goodrich Co. 2,000 86,625
Boeing Co. 27,262 1,446,590
E.G. & G., Inc. 1,200 27,000
General Dynamics Corp. 2,400 180,000
Lockheed Martin Corp. 7,371 763,359
McDonnell Douglas Corp. 8,100 554,850
Northrop Grumman Corp. 2,200 193,187
Raytheon Co. 9,000 459,000
Rockwell International Corp. 8,300 489,700
Textron, Inc. 6,300 418,162
United Technologies Corp. 9,100 755,300
----------
6,461,738
----------
AIR TRANSPORT -- 0.3%
AMR Corp.* 3,500 323,750
Delta Air Lines, Inc. 2,800 229,600
Southwest Airlines Co. 5,500 142,312
U.S. Air Group, Inc.* 3,000 105,000
----------
800,662
----------
ALCOHOLIC BEVERAGES & TOBACCO -- 2.3%
Anheuser-Busch Cos., Inc. 19,000 796,812
Brown-Forman Corp. 2,600 126,912
Coors Adolph Co. 1,100 29,012
Fortune Brands, Inc. 6,500 242,531
Philip Morris Companies, Inc. 92,300 4,095,812
Seagram Co., Ltd. 14,100 567,525
UST, Inc. 7,100 197,025
----------
6,055,629
----------
APPAREL, TEXTILES -- 0.5%
Fruit of the Loom, Inc.* 2,900 89,900
Liz Claiborne, Inc. 2,700 125,887
Nike, Inc. 11,000 642,125
Reebok International, Ltd. 2,100 98,175
Russell Corp. 1,500 44,437
Springs Industries, Inc.-Class A 500 26,375
Stride Rite Corp. 1,300 16,737
VF Corp. 2,400 203,400
----------
1,247,036
----------
AUTO RELATED -- 0.6%
Cooper Tire & Rubber Co. 2,200 48,400
Dana Corp. 3,900 148,200
Eaton Corp. 3,000 261,937
Echlin, Inc. 1,900 68,400
Genuine Parts Co. 6,925 234,584
Goodyear Tire & Rubber Co. 5,900 373,544
ITT Industries, Inc. 4,500 115,875
T.R.W., Inc. 4,800 272,700
----------
1,523,640
----------
AUTOS -- 1.6%
Chrysler Corp. 27,000 885,937
Ford Motor Co. , Inc. 45,600 1,721,400
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
AUTOS (CONTINUED)
General Motors Corp. 28,000 $ 1,559,250
-----------
4,166,587
-----------
BANKS -- 7.6%
Banc One Corp. 16,248 787,012
Bank of New York Co., Inc. 14,700 639,450
BankAmerica Corp. 26,976 1,741,638
BankBoston Corp. 5,600 403,550
Bankers Trust New York Corp. 2,900 252,300
Barnett Banks, Inc. 7,600 399,000
Chase Manhattan Corp. 16,384 1,590,272
Citicorp 17,600 2,121,900
Comerica, Inc. 4,100 278,800
CoreStates Financial Corp. 7,800 419,250
Fifth Third Bancorp 4,000 328,000
First Bank System, Inc. 5,100 435,412
First Chicago NBD Corp. 11,913 720,736
First Union Corp. 10,800 999,000
Fleet Financial Group, Inc. 9,955 629,654
J.P. Morgan & Co., Inc. 7,000 730,625
Keycorp 8,556 478,066
MBNA Corp. 12,725 466,053
Mellon Bank Corp. 9,900 446,737
National City Corp. 8,500 446,250
NationsBank, Corp. 27,888 1,798,776
Norwest Corp. 14,100 793,125
PNC Bank Corp. 12,200 507,825
Republic New York Corp. 2,100 225,750
Suntrust Banks, Inc. 8,500 468,031
U.S. Bancorp, Inc. 5,600 359,100
Wachovia Corp. 6,100 355,706
Wells Fargo & Co. 3,433 925,193
-----------
19,747,211
-----------
BUSINESS SERVICES -- 2.0%
Automatic Data Processing, Inc. 11,100 521,700
Ceridian Corp.* 3,100 130,975
Cognizant Corp. 6,500 263,250
Computer Sciences Corp. 2,900 209,162
CUC International, Inc.* 15,150 391,059
Deluxe Corp. 3,100 105,787
Dun & Bradstreet Corp. 6,500 170,625
Ecolab Inc. 2,500 119,375
Federal Express Corp.* 4,300 248,325
First Data Corp. 17,100 751,331
H & R Block, Inc. 4,000 129,000
Ikon Office Solutions, Inc. 5,100 127,181
Interpublic Group of Cos., Inc. 3,100 190,069
John H. Harland Co. 800 18,250
Moore Corp., Ltd. 3,400 66,937
National Service Industries, Inc. 1,700 82,769
Oracle Corp.* 24,825 1,249,008
Service Corp. International 9,000 295,875
Shared Medical Systems Corp. 900 48,375
-----------
5,119,053
-----------
See Notes to Financial Statements.
49
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
CASINOS -- 0.0%
Harrah's Entertainment, Inc.* 3,950 $ 71,100
----------
CHEMICALS -- 3.6%
Air Products & Chemicals, Inc. 4,200 341,250
Avery Dennison Corp. 4,000 160,500
Corning, Inc. 8,700 483,937
Dow Chemical Co. 8,900 775,412
E.I. du Pont de Nemours & Co. 43,000 2,703,625
Eastman Chemical Co. 3,000 190,500
F.M.C. Corp.* 1,400 111,212
Great Lakes Chemical Corp. 2,300 120,462
Hercules, Inc. 3,900 186,712
Minnesota Mining & Manufacturing Co. 15,800 1,611,600
Monsanto Co. 22,400 964,600
Morton International, Inc. 5,400 163,012
Nalco Chemical Co. 2,600 100,425
P.P.G. Industries, Inc. 6,900 401,062
Praxair, Inc. 6,000 336,000
Rohm & Haas Co. 2,400 216,150
Sigma Aldrich Corp. 3,800 132,762
Union Carbide Corp. 4,900 230,606
W.R. Grace & Co. 2,800 154,350
----------
9,384,177
----------
CONSTRUCTION -- 0.4%
Armstrong World Industries, Inc. 1,600 117,400
Centex Corp. 800 32,500
Fleetwood Enterprises, Inc. 1,200 35,775
Fluor Corp. 3,200 176,600
Foster Wheeler Corp. 1,500 60,750
Kaufman & Broad Home Corp. 900 15,806
Masco Corp. 6,100 254,675
Owens Corning 2,000 86,250
Pulte Corp. 1,000 34,562
Sherwin Williams Co. 6,500 200,687
----------
1,015,005
----------
CONTAINERS -- 0.1%
Ball Corp. 900 27,056
Bemis Co., Inc. 2,000 86,500
Crown Cork & Seal Co., Inc. 4,900 261,844
----------
375,400
----------
COSMETICS & SOAP -- 2.8%
Alberto-Culver Co. - Class B 1,400 39,200
Avon Products, Inc. 5,100 359,869
Clorox Co. 2,000 264,000
Colgate-Palmolive Co. 11,200 730,800
Gillette Co. 21,200 2,008,700
International Flavors & Fragrances, Inc. 4,200 212,100
Procter & Gamble Co. 25,900 3,658,375
----------
7,273,044
----------
DRUGS -- 9.4%
Abbott Laboratories, Inc. 29,600 1,975,800
Allergan, Inc. 2,500 79,531
Alza Corp.* 3,200 92,800
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
DRUGS (CONTINUED)
American Home Products Corp. 24,400 $ 1,866,600
Amgen, Inc. * 10,100 586,431
Bristol-Myers Squibb Co. 38,200 3,094,200
Cardinal Health, Inc. 4,200 240,450
Eli Lilly & Co. 21,000 2,295,562
Johnson & Johnson 50,800 3,270,250
Mallinckrodt Group, Inc. 2,800 106,400
Merck & Co., Inc. 46,000 4,761,000
Pfizer, Inc. 24,500 2,927,750
Pharmacia & Upjohn, Inc. 19,380 673,455
Schering Plough Corp. 27,800 1,330,925
Warner-Lambert Co. 10,300 1,279,775
-----------
24,580,929
-----------
ELECTRIC & GAS -- 2.7%
American Electric Power Co. 7,300 306,600
Baltimore Gas & Electric Co. 5,700 152,119
Carolina Power & Light Co. 5,900 211,662
Central & South West Corp. 8,200 174,250
Cinergy Corp. 6,136 213,609
Consolidated Edison Co., Inc. 9,100 267,881
Consolidated Natural Gas Co. 3,700 199,106
Dominion Resources, Inc. 6,950 254,544
DTE Energy Co. 5,600 154,700
Duke Power Co. 13,961 669,255
Eastern Enterprises 500 17,344
Edison International 16,800 417,900
Enserch Corp. 2,700 60,075
Entergy Corp. 9,000 246,375
F.P.L. Group, Inc. 7,100 327,044
GPU, Inc. 4,700 168,612
Houston Industries, Inc. 9,100 195,081
Niagara Mohawk Power Corp.* 5,600 47,950
Nicor, Inc. 1,900 68,162
Noram Energy Corp. 3,500 53,375
Northern States Power Co. 2,700 139,725
Ohio Edison Co. 5,900 128,694
Oneok, Inc. 700 22,531
P.P.& L. Resources Inc. 6,300 125,606
Pacific Enterprises 3,300 110,962
Pacific Gas & Electric Co. 16,000 388,000
Pacificorp 11,400 250,800
PECO Energy Co. 8,600 180,600
Peoples Energy Corp. 1,400 52,412
Public Service Enterprise Group, Inc. 9,300 232,500
Southern Co. 26,200 573,125
Texas Utilities Co. 8,700 299,606
Unicom Corp. 8,400 186,900
Union Electric Co. 4,000 150,750
-----------
7,047,855
-----------
ELECTRICAL -- 4.1%
Cooper Industries, Inc. 4,500 223,875
Emerson Electric Co. 17,000 936,062
General Electric Co. 124,700 8,152,262
General Instruments Corp.* 5,200 130,000
See Notes to Financial Statements.
50
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
ELECTRICAL (CONTINUED)
Honeywell, Inc. 4,800 $ 364,200
Johnson Controls, Inc. 3,200 131,400
W.W. Grainger, Inc. 2,000 156,375
Westinghouse Electric Corp. 24,200 559,625
-----------
10,653,799
-----------
ELECTRONICS -- 4.2%
A.M.P., Inc. 8,396 350,533
Advanced Micro Devices Inc.* 5,200 187,200
Andrew Corp. * 3,487 97,636
Bay Networks, Inc .* 7,500 199,219
Intel Corp. 31,300 4,430,906
LSI Logic Corp.* 5,400 172,800
Lucent Technologies, Inc. 24,336 1,753,713
Micron Technology, Inc. 8,000 319,500
Motorola, Inc. 22,600 1,717,600
National Semiconductor Corp.* 5,300 162,312
Parametric Technology Corp 4,900 208,250
Perkin Elmer Corp. 1,700 135,256
Scientific Atlanta, Inc. 2,400 52,500
Tektronix, Inc. 1,300 78,000
Tellabs, Inc. 6,800 379,100
Texas Instruments, Inc. 7,300 613,656
Thomas & Betts Corp. 2,000 105,125
-----------
10,963,306
-----------
ENERGY SERVICES -- 0.8%
Baker Hughes, Inc. 5,500 212,781
Halliburton Co. 4,800 380,400
Helmerich & Payne, Inc. 1,000 57,625
Rowan Cos., Inc.* 3,300 93,019
Schlumberger, Ltd. 9,400 1,175,000
Western Atlas, Inc.* 2,000 146,500
-----------
2,065,325
-----------
ENERGY AND RAW MATERIALS -- 1.7%
Royal Dutch Petroleum Co. 81,600 4,437,000
-----------
FOOD & BEVERAGES -- 6.3%
Archer Daniels Midland Co. 20,241 475,663
Campbell Soup Co. 17,700 885,000
Coca Cola Co. 94,200 6,358,500
Conagra, Inc. 9,150 586,744
CPC International, Inc. 5,500 507,719
General Mills, Inc. 6,200 403,775
H.J. Heinz Co. 14,000 645,750
Hershey Foods Corp. 5,900 326,344
Kellogg Co. 7,900 676,437
Pepsico, Inc. 58,200 2,186,138
Pioneer Hi-Bred International, Inc. 3,100 248,000
Quaker Oats Co. 5,200 233,350
Ralston Purina Group 4,100 336,969
Sara Lee Corp. 18,300 761,738
Unilever N.V 6,100 1,329,800
Wm. Wrigley Jr., Co. 4,400 294,800
Whitman Corp. 4,000 96,000
-----------
16,352,727
-----------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
FOREST PRODUCTS & PAPER -- 1.3%
Boise Cascade Corp. 1,800 $ 63,563
Champion International, Corp. 3,600 198,900
Georgia Pacific Corp. 3,500 298,813
International Paper Co. 11,407 553,952
James River Corp. 3,300 122,100
Kimberly-Clark Corp. 21,528 1,071,018
Louisiana-Pacific Corp. 4,100 86,613
Mead Corp. 2,000 124,500
Potlatch Corp. 900 40,725
Stone Container Corp. 2,554 36,554
Temple Inland, Inc. 2,100 113,400
Union Camp Corp. 2,700 135,000
Westvaco Corp. 3,900 122,606
Weyerhaeuser Co. 7,600 395,200
Willamette Industries, Inc. 2,100 147,000
----------
3,509,944
----------
HEALTH CARE SERVICES -- 1.9%
Bausch & Lomb, Inc. 2,100 98,963
Baxter International, Inc. 10,400 543,400
Becton, Dickinson & Co. 4,700 237,938
Beverly Enterprises, Inc.* 3,200 52,000
Biomet, Inc. 4,400 81,950
Boston Scientific Corp.* 7,400 454,638
C.R. Bard, Inc. 2,200 79,888
Columbia HCA Healthcare Corp. 25,582 1,005,692
Guidant Corp. 2,800 238,000
Healthsouth Corp. 13,000 324,188
Humana, Inc.* 6,200 143,375
Manor Care, Inc. 1,950 63,619
Medtronic, Inc. 9,200 745,200
Millipore Corp. 1,700 74,800
St. Jude Medical, Inc.* 3,100 120,900
Tenet Healthcare Corp.* 11,500 339,969
U.S. Surgical Corp. 2,700 100,575
United Healthcare Corp. 7,000 364,000
----------
5,069,095
----------
HOTELS & RESTAURANTS -- 1.0%
Darden Restaurants 4,100 37,156
HFS, Inc.* 6,000 348,000
Hilton Hotels Corp. 9,400 249,688
ITT Corp.* 4,400 268,675
Marriott International, Inc. 4,900 300,738
McDonald's Corp. 26,600 1,285,113
Wendy's International, Inc. 4,900 127,094
----------
2,616,464
----------
HOUSEHOLD GOODS -- 0.3%
Black & Decker Corp. 3,600 133,875
Maytag Corp. 3,800 99,275
Newell Co. 6,100 241,713
Rubbermaid, Inc. 5,700 169,575
Tupperware Corp. 2,400 87,600
Whirlpool Corp. 2,800 152,775
----------
884,813
----------
See Notes to Financial Statements.
51
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
INSURANCE -- 4.6%
Aetna, Inc. 5,753 $ 588,963
Allstate Corp. 16,770 1,224,210
American General Corp. 8,796 420,009
American International Group, Inc. 17,875 2,670,078
Aon Corp. 6,200 320,850
Chubb Corp. 6,600 441,375
Cigna Corp. 2,800 497,000
Conseco, Inc. 7,300 270,100
General Re Corp. 3,100 564,200
Hartford Financial Services Group, Inc. 4,500 372,375
Jefferson-Pilot Corp. 2,700 188,663
Lincoln National Corp. 4,000 257,500
Loews Corp. 4,400 440,550
Marsh & McLennan Cos., Inc. 6,200 442,525
MBIA, Inc. 1,600 180,500
MGIC Investment Corp. 4,500 215,719
Providian Financial Corp. * 3,600 115,650
Safeco Corp. 4,800 224,100
St. Paul Cos., Inc. 3,200 244,000
Torchmark Corp. 2,650 188,813
Transamerica Corp. 2,500 233,906
Travelers Group, Inc. 24,356 1,535,950
U.S.F.& G. Corp. 4,400 105,600
UNUM Corp. 5,600 235,200
-----------
11,977,836
-----------
LEISURE -- 0.2%
Brunswick Corp. 3,800 118,750
Hasbro, Inc. 4,950 140,456
Jostens, Inc. 1,000 26,750
Mattel, Inc. 11,037 373,878
-----------
659,834
-----------
MACHINERY & EQUIPMENT -- 2.1%
Aeroquip Vickers, Inc. 800 37,800
Applied Materials, Inc. 6,900 488,175
Briggs & Stratton Corp. 600 30,000
Case Corp. 2,800 192,850
Caterpillar, Inc. 7,300 783,838
Cincinnati Milacron, Inc. 1,500 38,906
Crane Co. 1,800 75,263
D.S.C. Communication Corp.* 4,500 100,125
Deere & Co. 9,800 537,775
Dover Corp. 4,300 264,450
Dresser Industries, Inc. 6,700 249,575
General Signal Corp. 1,900 82,888
Giddings & Lewis, Inc. 1,400 29,050
Harnischfeger Industries, Inc. 1,900 78,850
Illinois Tool Works, Inc. 9,400 469,413
Ingersoll Rand Co. 4,200 259,350
McDermott International, Inc. 2,100 61,294
Nacco Industries, Inc. 200 11,288
Pall Corp. 4,833 112,367
Parker-Hannifin Corp. 2,850 172,959
Raychem Corp. 1,700 126,438
Snap-On, Inc. 2,300 90,563
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
MACHINERY & EQUIPMENT (CONTINUED)
Stanley Works 3,400 $ 136,000
Tenneco, Inc.* 6,500 293,719
Thermo Electron Corp.* 5,700 195,938
Timken Co. 2,400 85,350
Tyco International Ltd. 6,400 445,200
----------
5,449,424
----------
MEDIA -- 2.5%
Comcast Corp.-Class A 4,800 100,200
Comcast Corp.-Special Class A Non-Voting 7,600 161,975
Dow Jones & Co., Inc. 3,700 148,694
Gannett Co., Inc. 5,400 533,250
King World Productions, Inc.* 1,000 35,000
Knight-Ridder, Inc. 3,600 176,625
McGraw-Hill Companies, Inc. 3,800 223,488
Meredith Corp. 1,800 52,200
New York Times Co. 3,700 183,150
R.R. Donnelley & Sons, Inc. 5,800 212,425
Tele-Communications, Inc.-Class A* 25,300 374,756
Time Warner, Inc. 21,700 1,047,025
Times Mirror Co. 3,600 198,900
Tribune Co. 4,200 201,863
U.S. West Media Group* 23,800 481,950
Viacom, Inc.-Class A* 560 16,485
Viacom, Inc.-Class B* 12,443 373,290
Walt Disney Co. 25,700 2,062,425
----------
6,583,701
----------
METALS -- 1.2%
Alcan Aluminium Ltd. 8,600 298,313
Aluminum Co. of America 6,600 497,475
Armco, Inc.* 3,100 12,013
Asarco, Inc. 1,600 49,000
Barrick Gold Corp. 13,600 299,200
Battle Mountain Gold Co. 8,700 49,481
Bethlehem Steel Corp.* 4,300 44,881
Cyprus AMAX Minerals Co. 3,550 86,975
Echo Bay Mines Ltd. 3,300 18,975
Engelhard Corp. 5,487 114,884
Freeport-McMoran Copper & Gold, Inc. 7,400 230,325
Homestake Mining Co. 5,600 73,150
Inco, Ltd. 6,400 192,400
Inland Steel Industries, Inc. 1,900 49,638
Newmont Mining Corp. 5,974 232,986
Nucor Corp. 3,300 186,450
Phelps Dodge Corp. 2,500 212,969
Placer Dome, Inc. 9,100 149,013
Reynolds Metals Co. 2,800 199,500
USX-U.S. Steel Group, Inc. 3,200 112,200
Worthington Industries, Inc. 2,950 54,022
----------
3,163,850
----------
MISCELLANEOUS FINANCE -- 2.7%
American Express Co. 18,000 1,341,000
Beneficial Corp. 2,100 149,231
Countrywide Credit Industries, Inc. 4,000 124,750
See Notes to Financial Statements.
52
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
MISCELLANEOUS FINANCE (CONTINUED)
Equifax, Inc. 5,700 $ 211,969
Federal Home Loan Mortgage Corp. 26,400 907,500
Federal National Mortgage Association 40,300 1,758,088
Green Tree Financial Corp. 5,200 185,250
Household International, Inc. 3,700 434,519
Merrill Lynch, Pierce, Fenner, Inc. 12,600 751,275
Morgan Stanley Dean Witter Discover & Co. 21,869 941,734
Salomon, Inc. 4,200 233,625
-----------
7,038,941
-----------
OFFICE EQUIPMENT -- 7.6%
Adobe Systems, Inc. 2,700 94,669
Amdahl Corp.* 4,600 40,250
Apple Computer, Inc.* 4,800 68,100
Autodesk, Inc. 1,800 68,963
Cabletron Systems, Inc.* 5,900 167,044
Cisco Systems, Inc. 25,100 1,684,838
Compaq Computer, Inc.* 10,300 1,022,275
Computer Associates International, Inc. 13,875 772,664
Data General Corp.* 1,000 26,000
Dell Computer, Inc.* 6,400 751,200
Digital Equipment Corp.* 6,000 212,625
EMC Corp.* 9,400 366,600
Harris Corp. 1,500 126,000
Hewlett Packard Co. 38,700 2,167,200
Intergraph Corp.* 1,100 9,213
International Business Machines, Inc. 37,800 3,409,088
Microsoft Corp. * 45,500 5,752,906
Novell, Inc.* 13,200 91,163
Pitney Bowes, Inc. 5,700 396,150
Seagate Technologies* 9,400 330,763
Silicon Graphics, Inc.* 6,754 101,310
Sun Microsystems, Inc.* 14,000 520,625
Tandem Computers, Inc.* 4,500 91,125
3Com Corp.* 12,600 566,213
Unisys Corp.* 6,700 51,088
Xerox Corp. 12,400 978,050
-----------
19,866,122
-----------
OIL & GAS -- 6.6%
Amerada Hess Corp. 3,600 200,025
Amoco Corp. 19,000 1,651,813
Ashland, Inc. 2,800 129,850
Atlantic Richfield Co. 12,200 860,100
Burlington Resources, Inc. 4,800 211,800
Chevron Corp. 24,900 1,841,044
Coastal Corp. 4,100 218,069
Enron Corp. 9,900 404,044
Exxon Corp. 94,400 5,805,600
Kerr-McGee Corp. 1,800 114,075
Louisiana Land & Exploration Co. 1,300 74,263
Mobil Corp. 30,000 2,096,250
Occidental Petroleum Corp. 12,500 313,281
Oryx Energy Co.* 4,000 84,500
Pennzoil Co. 1,800 138,150
Phillips Petroleum Co. 10,000 437,500
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
OIL & GAS (CONTINUED)
Santa Fe Energy Resources, Inc.* 2,700 $ 39,656
Sonat, Inc. 3,300 169,125
Sun Co., Inc. 2,755 85,405
Texaco, Inc. 10,100 1,098,375
Union Pacific Resources Group 9,551 237,581
Unocal Corp. 9,500 368,719
USX-Marathon Group, Inc. 11,000 317,625
Williams Cos., Inc. 6,050 264,688
-----------
17,161,538
-----------
PHOTOGRAPHIC -- 0.4%
Eastman Kodak Co. 12,700 974,725
Polaroid Corp. 1,700 94,350
-----------
1,069,075
-----------
POLLUTION CONTROL -- 0.4%
Browning-Ferris Industries, Inc. 8,100 269,325
Laidlaw, Inc. 12,000 165,750
Safety-Kleen Corp. 1,900 32,063
WMX Technologies, Inc. 16,994 545,932
-----------
1,013,070
-----------
RAILROADS -- 0.8%
Burlington Northern Santa Fe Corp. 5,831 524,061
C.S.X. Corp. 8,300 460,650
Norfolk Southern Corp. 4,800 483,600
Union Pacific Corp. 9,300 655,650
-----------
2,123,961
-----------
RETAIL -- 4.1%
American Greetings Corp. 2,900 107,300
Autozone, Inc.* 5,700 134,306
Charming Shoppes, Inc.* 4,100 21,397
Circuit City Stores, Inc. 3,700 131,581
Costco Companies, Inc. 8,021 263,690
Dayton Hudson Corp. 8,300 441,456
Dillard's Inc. - Class A 4,300 148,888
Federated Department Stores, Inc.* 7,900 274,525
Gap, Inc. 10,600 412,075
Harcourt General, Inc. 2,700 128,588
Home Depot, Inc. 18,266 1,259,212
Kmart Corp.* 18,500 226,625
Limited, Inc. 10,313 208,838
Longs Drug Stores, Inc. 1,300 34,044
Lowe's Cos., Inc. 6,600 245,025
May Department Stores Co. 9,300 439,425
Melville Corp. 6,400 328,000
Mercantile Stores Co., Inc. 1,400 88,113
Nordstrom, Inc. 3,100 151,900
Penney, J.C. Co. 9,400 490,563
Pep Boys- Manny, Moe & Jack 2,300 78,344
Rite Aid Corp. 4,700 234,413
Sears, Roebuck & Co. 14,900 800,875
Tandy Corp. 2,200 123,200
TJX Companies, Inc. 6,000 158,250
Toys"R" Us, Inc.* 11,100 388,500
See Notes to Financial Statements.
53
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
RETAIL (CONTINUED)
Wal-Mart Stores, Inc. 86,100 $ 2,911,256
Walgreen Co. 9,400 504,075
Woolworth Corp.* 5,400 129,600
-----------
10,864,064
-----------
RETAIL - FOOD -- 0.6%
Albertson's, Inc. 9,600 350,400
American Stores Co. 5,600 276,500
Fleming Cos., Inc. 1,000 18,000
Giant Food, Inc. 2,300 75,038
Great Atlantic & Pacific Tea Co., Inc. 1,000 27,188
Kroger Co.* 9,600 278,400
Supervalu, Inc. 2,600 89,700
Sysco Corp. 6,700 244,550
Winn-Dixie Stores, Inc. 5,400 201,150
-----------
1,560,926
-----------
TELEPHONES -- 6.4%
AirTouch Communications, Inc.* 19,100 522,863
Alltel Corp. 7,100 237,406
Ameritech Corp. 20,900 1,419,894
AT&T Corp. 61,742 2,164,829
Bell Atlantic Corp. 16,700 1,267,113
BellSouth Corp. 37,800 1,752,975
Frontier Corp. 6,200 123,613
GTE Corp. 36,700 1,610,213
MCI Communications Corp. 26,100 998,325
Northern Telecom, Ltd. 9,900 900,900
NYNEX Corp. 16,800 968,100
SBC Communications, Inc. 34,704 2,147,310
Sprint Corp. 16,400 863,050
US West, Inc. 18,300 689,681
WorldCom, Inc.* 33,900 1,082,681
-----------
16,748,953
-----------
THRIFT INSTITUTIONS -- 0.2%
Golden West Financial Corp. 2,200 154,000
Great Western Financial Corp. 5,300 284,875
H.F. Ahmanson & Co. 4,000 172,000
-----------
610,875
-----------
TRUCKING -- 0.1%
Caliber Systems, Inc. 1,000 37,250
Cummins Engine Co., Inc. 1,500 105,844
Paccar, Inc. 2,990 138,661
Ryder System, Inc. 2,900 95,700
-----------
377,455
-----------
TOTAL COMMON STOCK
(Cost $174,643,194) 257,691,164
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- ---------- -------- ------------
U.S. TREASURY OBLIGATIONS -- 0.1%
U.S. Treasury Bills**
(Cost $297,711)
5.385% 08/21/97 $ 300 $ 297,879
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 1.3%
Dreyfus Cash Management Plus #719 1,743,082 1,743,082
Goldman Sachs Financial Square
Money Market Portfolio 1,748,743 1,748,743
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,491,825) 3,491,825
------------
TOTAL INVESTMENTS -- 99.9%
(Cost $178,432,730) 261,480,868
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.1% 154,517
------------
NET ASSETS -- 100.0%
Applicable to 11,783,075 and 58,039 shares
of beneficial interest outstanding of
Institutional Class and Class A, respectively,
$.001 par value (Note 9) $261,635,385
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($260,353,024/11,783,075) $22.10
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE ($1,282,361/58,039) $22.09
======
MAXIMUM PUBLIC OFFERING PRICE
PER CLASS A SHARE (NOTE 6) $23.13
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
** Security pledged as collateral for futures contracts.
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
---------- ------------
Futures Contracts -- Long Position
S&P 500 Index, September 1997 9 $24,750
= =======
See Notes to Financial Statements.
54
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK -- 54.1%
AEROSPACE -- 2.9%
Esterline Technologies Corp. 2,500 $ 89,062
Gencorp, Inc. 2,500 57,812
Lockheed Martin Corp. 5,600 579,950
Northrop Grumman Corp. 4,700 412,719
Textron, Inc. 8,800 584,100
----------
1,723,643
----------
AIR TRANSPORT -- 1.7%
AMR Corp.* 2,000 185,000
British Airways 3,800 436,762
Continental Airlines, Inc. Class B* 2,700 94,331
Delta Air Lines, Inc. 4,050 332,100
----------
1,048,193
----------
ALCOHOLIC BEVERAGES & TOBACCO -- 1.2%
Philip Morris Companies, Inc. 15,300 678,937
Universal Corp. 1,900 60,325
----------
739,262
----------
APPAREL, TEXTILES -- 1.2%
Fruit of the Loom, Inc.* 11,000 341,000
Springs Industries, Inc.-Class A 1,100 58,025
VF Corp. 4,000 339,000
----------
738,025
----------
AUTO RELATED -- 0.1%
Clarcor, Inc. 1,500 37,125
----------
AUTOS -- 1.6%
Ford Motor Co., Inc. 26,200 989,050
----------
BANKS -- 3.3%
BankAmerica Corp. 11,200 723,100
CCB Financial Corp. 800 58,500
Chase Manhattan Corp. 7,500 727,969
Compass Bancshares, Inc. 2,100 70,350
Old Kent Financial Corp. 2,205 118,794
Southtrust Corp. 7,300 302,037
----------
2,000,750
----------
BUSINESS SERVICES -- 0.4%
Aviall, Inc.* 4,900 68,600
Franklin Covey Co. 1,600 40,500
Olsten Corp., Class B 3,900 75,806
Selective Insurance Group, Inc. 800 38,500
----------
223,406
----------
CHEMICALS -- 0.2%
Lyondell Petrochemical Co. 6,400 139,600
----------
CONSTRUCTION -- 1.0%
Centex Corp. 10,100 410,312
Lone Star Industries, Inc. 1,500 67,969
Vulcan Materials, Inc. 1,600 125,600
----------
603,881
----------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
CONTAINERS -- 0.0%
Libbey, Inc. 600 $ 21,000
----------
COSMETICS & SOAP -- 0.1%
NBTY, Inc. 2,800 77,700
----------
DRUGS -- 2.3%
Bergen Brunswig Corp. 18,125 505,234
Bristol-Myers Squibb Co. 9,100 737,100
Cardinal Health, Inc. 2,600 148,850
----------
1,391,184
----------
ELECTRIC & GAS -- 2.8%
Central Louisiana Electric Co. 1,100 30,937
GPU, Inc. 17,600 631,400
IES Industries, Inc. 1,300 38,350
Long Island Lighting 22,200 510,600
N.Y. State Electric & Gas Corp. 20,400 425,850
Washington Water Power Co. 1,600 31,400
----------
1,668,537
----------
ELECTRONICS -- 2.4%
Arrow Electronics, Inc. 3,600 191,250
Avnet, Inc. 5,800 333,500
Electro Scientific Industries, Inc. 1,000 41,687
Harman International Industries, Inc. 1,700 71,612
Hutchinson Technology, Inc.* 2,500 60,625
Intel Corp. 3,600 509,625
Lucent Technologies, Inc. 1,900 136,919
Marshall Industries, Inc. 3,400 126,650
----------
1,471,868
----------
ENERGY SERVICES -- 0.6%
Ensco International, Inc. 5,300 279,575
Zeigler Coal Holding Co. 2,900 67,787
----------
347,362
----------
FOOD & BEVERAGES -- 1.9%
Conagra, Inc. 2,500 160,312
Dean Foods Co. 14,000 565,250
Smithfield Foods, Inc.* 6,525 401,287
----------
1,126,849
----------
FOREST PRODUCTS & PAPER -- 0.1%
Caraustar Industries, Inc. 1,200 41,400
----------
HEALTH CARE SERVICES -- 2.1%
Beverly Enterprises, Inc.* 26,300 427,375
Columbia HCA Healthcare Corp. 6,700 263,394
Foundation Health Systems, Inc. 2,290 69,416
Integrated Health Services, Inc. 800 30,800
Living Centers of America, Inc. 1,600 63,200
Tenet Healthcare Corp.* 13,000 384,312
U.S. Surgical Corp. 1,200 44,700
----------
1,283,197
----------
See Notes to Financial Statements.
55
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
HOTELS, RESTAURANTS -- 0.1%
Luby's Cafeterias, Inc. 1,400 $ 27,912
----------
INSURANCE -- 4.9%
Allstate Corp. 2,200 160,600
American Bankers Insurance Co. 6,200 391,375
Blanch E. W., Hldgs. 2,400 64,050
Cigna Corp. 5,200 923,000
Conseco, Inc. 12,100 447,700
First American Financial Corp. 3,500 136,500
Gallagher (Arthur J.) & Co. 4,400 166,100
Loews Corp. 1,200 120,150
Old Republic International Corp. 3,500 106,094
Orion Capital Corp. 800 59,000
Protective Life Corp. 1,000 50,250
Travelers Group, Inc. 5,200 327,925
----------
2,952,744
----------
LEISURE -- 0.6%
Brunswick Corp. 10,600 331,250
----------
MACHINERY & EQUIPMENT -- 1.6%
Crane Co. 1,800 75,263
Graco, Inc. 3,400 102,425
Harnischfeger Industries, Inc. 8,700 361,050
Mark IV Industries, Inc. 7,140 171,360
Timken Co. 7,900 280,944
----------
991,042
----------
MEDIA -- 0.6%
King World Productions, Inc.* 2,400 84,000
Omnicom Group, Inc. 4,800 295,800
----------
379,800
----------
METALS -- 0.8%
Asarco, Inc. 6,700 205,188
Cleveland Cliffs, Inc. 1,600 65,200
Reliance Steel & Aluminum Corp. 1,500 39,000
USX-U.S. Steel Group, Inc. 5,600 196,350
----------
505,738
----------
MISCELLANEOUS FINANCE -- 2.5%
Bear Stearns Companies, Inc. 14,500 495,719
Morgan Stanley Dean Witter Discover & Co. 3,100 133,494
Eaton Vance Corp. 2,000 55,625
Lehman Brothers Holdings, Inc. 7,800 315,900
Merrill Lynch, Pierce, Fenner, Inc. 8,800 524,700
----------
1,525,438
----------
OFFICE EQUIPMENT -- 4.4%
Applied Magnetics, Inc. 2,000 45,250
Compaq Computer, Inc.* 4,100 406,925
Dell Computer, Inc.* 4,900 575,138
Gateway 2000, Inc.* 6,600 213,675
Harris Corp. 2,800 235,200
HMT Technology Corp. 3,300 42,488
International Business Machines Corp. 6,600 595,238
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
OFFICE EQUIPMENT (CONTINUED)
Storage Technology Corp.* 1,700 $ 75,650
Stormedia, Inc. 1,000 7,125
The Learning Company, Inc.* 1,500 14,063
Western Digital Corp.* 14,000 442,750
----------
2,653,502
----------
OIL & GAS -- 4.0%
Exxon Corp. 4,200 258,300
Oryx Energy Co.* 3,000 63,375
Phillips Petroleum Co. 100 4,375
Texaco, Inc. 8,600 935,250
Ultramar Diamond Shamrock Corp. 8,200 267,525
USX-Marathon Group, Inc. 30,000 866,250
----------
2,395,075
----------
RETAIL -- 3.1%
Carson Pirie Scott & Co. 2,600 82,550
Dayton Hudson Corp. 6,500 345,719
Ross Stores, Inc. 4,400 143,550
Shopko Stores, Inc. 2,200 56,100
TJX Companies, Inc. 31,200 822,900
Waban, Inc.* 9,000 289,688
Woolworth Corp.* 6,100 146,400
----------
1,886,907
----------
RETAIL - FOOD -- 1.9%
Kroger Co.* 8,600 249,400
Ruddick Corp. 1,800 29,700
Safeway, Inc.* 18,200 839,475
----------
1,118,575
----------
TELEPHONES -- 1.4%
British Telecommunications 11,300 839,025
----------
THRIFT INSTITUTIONS -- 1.6%
Golden West Financial Corp. 4,200 294,000
Washington Mutual, Inc. 11,700 699,075
----------
993,075
----------
TRUCKING -- 0.7%
GATX Corp. 3,200 184,800
Paccar, Inc. 5,400 250,425
----------
435,225
----------
TOTAL COMMON STOCK
(Cost $30,282,221) 32,707,340
----------
COUPON MATURITY PAR
RATE (DOUBLE DAGGER) (000) VALUE(DAGGER)
-------- --------------- -------- ------------
ASSET BACKED SECURITIES -- 4.9%
Team Fleet Financing Corp.
Series 1997-1, Class A
7.350% 05/15/03 $ 375 380,391
World Omni Automobile Lease
Series 1997-A, Class A4
6.900% 06/25/03 275 277,709
See Notes to Financial Statements.
56
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON MATURITY PAR
RATE (DOUBLE DAGGER) (000) VALUE(DAGGER)
-------- --------------- ----- ------------
ASSET BACKED SECURITIES (CONTINUED)
Banco Nacional De Mexico, S.A
Series 1996-A, Class A1
6.250% 12/01/03 $ 375 $ 366,973
Chase Commercial Mortgage Securities
Corp. Series 1997-1, Class A-1
7.270% 07/19/04 750 760,223
Case Equipment Loan Trust
Series 1997-A, Class B
6.700% 03/15/04 500 500,540
Green Tree Financial Corp.
Series 1997-4, Class A5
6.880% 01/01/01 650 646,750
-----------
TOTAL ASSET BACKED SECURITIES
(Cost $2,921,297) 2,932,586
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 8.8%
Federal National Mortgage Association
Series 1994-5, Class Z
6.500% 02/25/24 494 432,328
Federal National Mortgage Association
Series 1996-53
6.500% 11/18/10 800 784,272
Federal National Mortgage Association
Series 1997-20 IO
1.840% 01/25/25 4,972 302,813
Federal National Mortgage Association
Series G-18
8.750% 06/25/21 810 844,043
Federal National Mortgage Association
STRIP Series X-13, Class G
6.500% 08/25/22 845 817,538
Federal National Mortgage Association
STRIP Series 110, Class 2
0.000% 11/25/19 984 317,206
Federal National Mortgage Association
STRIP Series 145, Class 1
0.000% 06/25/22 984 733,067
Federal Home Loan Mortgage Corp.
Pool#1897
7.250% 03/15/22 600 599,600
Asset Securitization Corp. Series
1997-D4 IO
1.002% 04/14/29 6,385 488,850
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $5,275,509) 5,319,717
-----------
MORTGAGE BACKED SECURITIES -- 8.2%
Federal National Mortgage Association
Pool#250888
7.000% 03/01/12 1,991 1,988,378
Federal National Mortgage Association
Pool#303948
7.500% 06/01/26 1,818 1,822,918
Federal National Mortgage Association
Pool#345739
7.500% 01/01/27 103 103,457
COUPON MATURITY PAR
RATE (DOUBLE DAGGER) (000) VALUE(DAGGER)
-------- --------------- ----- ------------
MORTGAGE BACKED SECURITIES (CONTINUED)
Federal National Mortgage Association
Pool#363317
7.500% 11/01/26 $ 50 $ 50,035
Federal National Mortgage Association
Pool#368941
7.500% 12/01/26 544 545,936
Federal National Mortgage Association
Pool#371323
7.500% 03/01/27 440 441,029
-----------
TOTAL MORTGAGE BACKED SECURITIES
(Cost $4,929,887) 4,951,753
-----------
CORPORATE BONDS -- 9.7%
INDUSTRIAL -- 2.6%
Belo (A.H.) Corp.
7.750% 06/01/27 140 140,875
Air Products & Chemicals
6.862% 10/25/03 535 530,988
Walt Disney Co.
6.375% 03/30/01 500 496,250
WMX Technologies, Inc.
6.220% 04/30/04 415 438,344
-----------
1,606,457
-----------
ELECTRIC -- 1.4%
National Power PLC
6.250% 12/01/03 360 344,628
Public Service Co.
6.600% 02/01/01 500 500,625
-----------
845,253
-----------
TRANSPORTATION -- 0.9%
CSX Corp.
7.250% 05/01/04 535 541,688
-----------
FINANCE - BANK -- 1.5%
National City Corp.
6.750% 06/01/99 400 402,040
Wachovia Bank-NC Eurobond
7.000% 10/17/08 500 496,000
-----------
898,040
-----------
FINANCE - NON-BANK -- 3.3%
Ford Credit Europe PLC
6.375% 04/03/00 375 375,746
Hartford Life
7.100% 06/15/07 500 498,750
Lehman Brothers Holdings
8.800% 03/01/02 250 278,125
Racers CTF-USW Series 1997
7.800% 02/01/17 430 436,132
See Notes to Financial Statements.
57
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON MATURITY PAR
RATE (DOUBLE DAGGER) (000) VALUE(DAGGER)
-------- --------------- ----- ------------
CORPORATE BONDS (CONTINUED)
FINANCE - NON-BANK (CONTINUED)
Sears Roebuck Acceptance Corp.
7.010% 09/19/02 $ 400 $ 403,500
-----------
1,992,253
-----------
TOTAL CORPORATE BONDS
(Cost $5,849,834) 5,883,691
-----------
SUPRANATIONAL BONDS -- 1.3%
African Development Bank
(Cost $790,957)
7.750% 12/15/01 770 802,725
-----------
YANKEE BONDS -- 2.3%
Export-Import Bank Korea
6.500% 11/15/03 325 311,594
Glaxo Wellcome PLC
6.125% 01/25/06 500 473,125
Hydro-Quebec
8.050% 07/07/06 545 591,325
-----------
TOTAL YANKEE BONDS
(Cost $1,383,639) 1,376,044
-----------
U.S. TREASURY OBLIGATIONS -- 8.6%
U.S. Treasury Bonds
12.500% 08/15/14 355 521,673
7.500% 11/15/16 600 641,412
8.750% 08/15/20 1,235 1,500,229
-----------
2,663,314
-----------
U.S. Treasury Notes
6.250% 01/31/02 590 586,956
7.250% 08/15/04 1,035 1,078,563
7.875% 11/15/04 780 841,425
-----------
2,506,944
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,143,378) 5,170,258
-----------
SHARES VALUE(DAGGER)
-------- ------------
TEMPORARY INVESTMENTS -- 1.5%
Dreyfus Cash Management Plus #719 472,786 $ 472,786
Goldman Sachs Financial Square
Money Market Portfolio 463,946 463,946
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $936,732) 936,732
-----------
TOTAL INVESTMENTS -- 99.4%
(Cost $57,513,454) 60,080,846
-----------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.6% 360,063
-----------
NET ASSETS -- 100.0%
Applicable to 4,448,581and 97.886
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 9) $60,440,909
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($60,439,579/4,448,581) $13.59
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE ($1,329.83/97.886) $13.59
======
MAXIMUM PUBLIC OFFERING
PRICE PER CLASS A SHARE (NOTE 6) $14.23
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
(DOUBLE DAGGER) Maturity dates for asset backed securities, including
collateralized mortgage obligations, represent weighted average maturities of
the underlying securities at June 30, 1997.
* Non-income producing security.
IO -- Interest Only security.
See Notes to Financial Statements.
58
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK -- 92.7%
AUSTRALIA -- 2.8%
Amcor, Ltd. 25,720 $ 170,941
Boral, Ltd. 66,733 210,169
Brambles Industries, Ltd. 14,706 290,897
Broken Hill Proprietary Co., Ltd. 64,488 948,914
Coca Cola Amatil, Ltd. 19,350 251,363
Coles Myer, Ltd. 56,469 293,847
CRA, Ltd. 18,142 309,387
CSR, Ltd. 41,337 160,158
Lend Lease Corp., Ltd. 14,244 301,219
MIM Holdings, Ltd. 67,467 99,871
National Australia Bank, Ltd. 53,126 761,144
The News Corp., Ltd. 63,736 305,669
The News Corp., Ltd.-Pref 50,247 198,095
North Limited 57,862 220,687
Pacific Dunlop, Ltd. 60,209 178,254
Pioneer International, Ltd. 55,515 214,671
Westpac Banking Corp. 69,213 416,618
WMC Limited 37,284 235,126
----------
5,567,030
----------
BELGIUM -- 0.7%
Bekaert SA 35 23,721
Electrabel SA 1,000 214,375
Etablissement Delhaize Freres &
Cie Le Lion SA 1,140 59,908
Fortis AG 614 126,846
Generale de Banque SA 450 173,293
Groupe Bruxelles Lambert SA 682 114,346
Kredietbank NV 263 106,034
Petrofina SA 456 172,751
Royal Belge SA 319 92,689
Solvay et Cie SA 247 145,597
Tractebel SA 400 166,829
----------
1,396,389
----------
DENMARK -- 0.5%
Carlsberg AS-B 667 36,785
Dampskibsselskabet AF 1912 AS 5 178,935
Dampskibsselskabet Svendborg-B 4 206,735
Danisco AS 1,432 87,605
Den Danske Bank AS 1,000 97,340
FLS Industries 885 30,005
Novo-Nordisk AS 1,114 121,530
SAS Danmark AS 1,200 14,013
Sophus Berendsen AS 550 79,560
Tele Danmark AS- 'B' 2,700 140,360
Unidanmark AS 1,100 61,825
----------
1,054,693
----------
FINLAND -- 0.7%
Cultor OY 1,000 52,986
Kesko OY 2,000 28,208
Merita, Ltd.-A* 10,000 33,333
Metra OY A 500 15,414
Metra OY B 500 15,077
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
FINLAND (CONTINUED)
Outokumpu OY 4,500 $ 89,306
OY Nokia AB Series A 7,200 538,127
OY Nokia AB Series K 3,400 253,526
Sampo Insurance Co., Ltd. 300 29,191
UPM-Kymmene Corp. 12,200 282,081
-----------
1,337,249
-----------
FRANCE -- 6.6%
Accor SA 1,350 202,213
Alcatel Alsthom Cie Generale
d'Electricite SA 5,100 638,911
AXA-UAP SA 5,300 329,728
Banque Nationale de Paris 6,550 270,027
Bouygues 1,000 82,298
Canal Plus SA 439 85,484
Carrefour Supermarche SA 1,441 1,046,840
Cie Financiere de Paribas SA 3,850 266,060
Cie Generale des Eaux 3,750 480,638
Compagnie Bancaire SA 1,300 165,957
Compagnie de Saint Gobain 3,457 504,281
Compagnie de Suez SA 107,000 263,174
Elf Aquitaine SA 8,700 938,860
Eridania Beghin-Say SA 1,050 157,277
Groupe Danone 2,400 396,664
Havas SA 1,850 133,357
L'air Liquide 3,595 570,917
L'Oreal 2,805 1,182,158
Lafarge SA 3,250 202,191
Legrand SA 526 92,666
LVMH (Louis Vuitton Moet Hennessey) 3,238 870,815
Lyonnaise des Eaux SA 2,400 241,838
Michelin SA 5,500 330,374
Peugeot SA 2,100 203,030
Pinault Printemps 950 456,647
Promodes 738 287,537
Rhone-Poulenc SA 11,000 449,362
Sanofi SA 3,450 338,247
Schneider SA 5,602 298,265
SEFIMEG Ste. Francaise d'Investissaments
Immobilliers & de Gestion 3,550 226,596
Simco 2,250 178,468
Societe Generale 1,050 117,243
Thomson CSF 4,000 103,081
Total SA 7,300 738,077
UAP-Union Assur de Paris 7,647 192,769
Usinor Sacilor 5,131 92,576
-----------
13,134,626
-----------
GERMANY -- 8.0%
Allianz AG Holdings 6,500 1,389,527
AMB Aachener und Muenchener
Beteiligungs AG 150 136,011
BASF AG 19,000 701,664
Bayer AG 22,550 869,647
Bayerische Vereinsbank AG 6,378 261,342
Beiersdorf AG 3,000 161,836
See Notes to Financial Statements.
59
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
GERMANY (CONTINUED)
Daimler-Benz AG 16,400 $ 1,335,529
Degussa AG 4,000 211,650
Deutsche Bank AG 17,950 1,054,852
Deutsche Telekom AG 43,500 1,069,713
Dresdner Bank AG 18,300 641,681
Heidelberger Zement AG 1,940 188,155
Hochtief AG 5,080 227,397
Karstadt AG 900 325,395
Linde AG 350 272,166
Lufthansa AG 11,000 211,793
M.A.N. AG 550 171,392
Mannesmann AG 1,350 603,529
Merck KGAA 3,255 141,501
Metro AG 2,215 241,521
Muenchener Rueckver AG 250 708,752
Preussag AG 950 279,684
RWE Aktiengesellschaft 12,000 516,499
RWE Aktiengesellschaft-Non Vtg Pfd. 8,000 279,369
SAP AG 2,346 470,950
Schering AG 2,250 241,205
Siemens AG 18,650 1,117,930
Thyssen AG 1,200 288,895
Veba AG 12,621 713,440
Viag AG 800 365,681
Volkswagen AG 950 720,746
-----------
15,919,452
-----------
HONG KONG -- 3.5%
Bank of East Asia, Ltd. 98,016 408,648
Cathay Pacific Airways, Ltd. 91,000 188,524
Cheung Kong Holdings, Ltd. 76,000 750,455
China Light & Power Co., Ltd. 62,500 354,156
Hang Seng Bank, Ltd. 57,900 825,830
Hong Kong & China Gas Co.,Ltd 142,560 285,219
Hong Kong & Shanghai Hotels, Ltd. 71,000 113,181
Hong Kong Telecommunications, Ltd. 369,600 882,578
Hopewell Holdings, Ltd. 130,000 82,222
Hutchison Whampoa, Ltd. 126,000 1,089,670
New World Development Co., Ltd. 45,000 268,352
Shangri-La Asia, Ltd. 28,000 33,612
Sun Hung Kai Properties,Ltd 74,000 890,697
Swire Pacific, Ltd. 55,000 495,173
Television Broadcasts Ltd. 11,000 49,411
The Wharf Holdings, Ltd. 79,000 342,623
-----------
7,060,351
-----------
ITALY -- 2.9%
Assicurazioni Generali SPA 34,760 631,573
Banca Commerciale Italiana SPA 58,000 120,048
Banco Ambrosiano Veneto SPA 15,000 43,219
Benetton Group SPA 10,920 174,332
Credito Italiano SPA 92,500 169,156
Edison SPA 29,000 144,177
Eni SPA 214,642 1,214,788
Fiat SPA 68,000 244,706
Fiat SPA -D 30,000 56,361
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
ITALY (CONTINUED)
Fiat SPA -PRIV 110,000 $ 203,099
Istituto Bancario San Paola Torino SPA 41,000 298,703
Italgas Sta. Italiana per ll Gas SPA 35,000 113,192
Mediaset SPA* 27,000 114,547
Mediobanca SPA 25,000 151,707
Montedison SPA* 177,600 117,171
Pirelli SPA 96,000 237,650
Riunione Adriatica Disicurta RAS SPA 14,750 116,654
Sirti SPA 10,500 60,537
SNIA BPD SPA 60,000 54,156
Telecom Italia Mobile SPA 209,031 676,018
Telecom Italia SPA 230,000 688,384
Telecom Italia-RNC 65,000 128,613
----------
5,758,791
----------
JAPAN -- 30.7%
Ajinomoto Co., Inc. 46,000 494,364
Aoki Corp.* 40,000 47,182
Asahi Bank, Ltd. 71,000 604,849
Asahi Chemical Industry Co., Ltd. 102,000 610,485
Asahi Glass Co., Ltd. 35,000 348,624
Ashikaga Bank, Ltd. 32,000 117,431
Bank of Tokyo-Mitsubishi, Ltd. 128,600 2,584,360
Bank of Yokohama, Ltd. 48,000 270,511
Bridgestone Corp. 35,000 813,456
Canon, Inc. 29,000 790,564
Chiba Bank, Ltd. 19,000 113,220
Chugai Pharmaceutical Co., Ltd. 14,000 125,994
Citizen Watch Co., Ltd. 28,000 216,269
Dai Nippon Printing Co., Ltd. 32,000 724,159
Daiei, Inc. 34,000 218,349
Daikin Industries, Ltd. 22,000 199,913
Daiwa House Industry Co., Ltd. 21,000 256,881
Daiwa Securities Co., Ltd. 49,000 387,034
Denki Kagaku Kogyo, K.K 54,000 149,096
Fanuc, Ltd. 8,600 330,625
Fuji Bank, Ltd. 99,000 1,487,811
Fuji Photo Film Co.,Ltd 16,000 644,474
Fujita Corp.,Ltd 26,000 45,435
Fujitsu, Ltd. 92,000 1,278,113
Furukawa Electric Co., Ltd. 38,000 242,045
Gunma Bank, Ltd. 32,000 287,986
Hankyu Corp. 18,000 99,554
Hitachi, Ltd. 133,000 1,487,462
Honda Motor Co., Ltd. 35,000 1,055,046
Industrial Bank of Japan 79,000 1,228,659
Ito-Yokado Co., Ltd. 13,000 755,352
Itochu Corp. 113,000 609,183
Japan Airlines Co., Ltd.* 79,000 359,624
Japan Energy Corp. 80,000 209,699
Joyo Bank, Ltd. 27,000 149,332
Jusco Co., Ltd. 19,000 642,464
Kajima Corp. 67,000 392,809
Kaneka Corp. 33,000 207,025
Kansai Electric Power Co., Inc. 26,900 519,432
Kao Corp. 32,000 444,561
See Notes to Financial Statements.
60
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
JAPAN (CONTINUED)
Kawasaki Kisen Kaisha, Ltd.* 19,000 $ 38,349
Kawasaki Steel Corp. 104,000 338,943
Kinki Nippon Railway Co., Ltd. 89,560 547,768
Kirin Brewery Co., Ltd. 43,000 447,095
Komatsu, Ltd. 28,000 227,523
Kubota Corp. 111,000 544,089
Kumagai Gumi Co., Ltd. 26,000 43,390
Kyocera Corp. 4,000 318,043
Kyowa Hakko Kogyo Co., Ltd. 35,000 262,385
Kyushu Electric Power Co., Ltd. 90 1,549
Marubeni Corp. 61,000 277,152
Marui Co., Ltd. 18,000 334,993
Matsushita Electric Industrial Co., Ltd. 70,000 1,412,844
Meiji Seika Kaisha, Ltd. 24,000 132,110
Misawa Homes Co., Ltd. 9,000 55,046
Mitsubishi Chemical Corp. 64,000 209,139
Mitsubishi Corp. 54,000 674,705
Mitsubishi Electric Corp. 82,000 459,257
Mitsubishi Estate Co., Ltd. 46,000 667,191
Mitsubishi Heavy Industries, Ltd. 134,000 1,029,148
Mitsubishi Trust & Banking Corp. 41,000 648,405
Mitsui Engineering & Shipbuilding
Co., Ltd.* 77,000 168,196
Mitsui Fudosan Co., Ltd. 27,000 372,739
Mitsui Osk Lines, Ltd.* 46,000 94,854
Mitsui Toatsu Chemicals, Inc. 30,000 82,569
Mitsui Trust and Banking Co., Ltd. 29,000 219,179
Mitsukoshi, Ltd. 40,000 284,841
Nagoya Railroad Co., Ltd. 45,000 185,583
NEC Corp. 69,000 964,613
New Oji Paper Co., Ltd. 51,000 315,937
Nichirei Corp. 26,000 129,716
Nikon Corp. 6,000 101,180
Nippon Express Co., Ltd. 40,000 319,790
Nippon Light Metal Co., Ltd. 46,000 167,602
Nippon Oil Co., Ltd. 80,000 438,270
Nippon Sheet Glass Co., Ltd. 78,000 287,602
Nippon Steel Corp. 223,000 713,132
Nippon Yusen K.K 40,000 155,526
Nippon Denso Co., Ltd. 55,000 1,316,732
Nissan Motors Co., Ltd. 81,000 629,174
NKK Corp. 244,000 524,456
Nomura Securities Co., Ltd. 73,000 1,007,776
Odakyu Electric Railway Co., Ltd. 64,870 385,422
Olympus Optical Co., Ltd. 24,000 215,990
Osaka Gas Co., Ltd. 142,000 408,196
Penta-Ocean Construction Co., Ltd. 27,000 87,287
Rohm Co., Ltd. 4,000 412,407
Sakura Bank, Ltd. 107,000 820,848
Sankyo Co., Ltd. 11,000 370,031
Sanyo Electric Co., Ltd. 104,000 467,069
Sekisui Chemical Co., Ltd. 21,000 212,844
Sekisui House, Ltd. 17,000 172,302
Seven-Eleven Japan Co., Ltd. 800 60,533
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
JAPAN (CONTINUED)
Sharp Corp. 43,000 $ 593,622
Shimizu Corp. 62,000 372,163
Shiseido Co., Ltd. 7,000 115,596
Shizuoka Bank, Ltd. 28,000 320,489
Showa Denko K.K.* 73,000 191,350
Sony Corp. 16,000 1,396,592
Sumitomo Bank, Ltd. 99,000 1,626,212
Sumitomo Chemical Co., Ltd. 64,000 290,223
Sumitomo Corp. 51,000 485,714
Sumitomo Electrical Industries, Ltd. 44,000 738,139
Sumitomo Metal Industries, Ltd. 133,000 378,838
Sumitomo Metal Mining Co., Ltd. 18,000 127,392
Taisho Pharmaceutical Co., Ltd. 29,000 782,962
Takashimaya Co., Ltd. 24,000 327,130
Takeda Chemical Industries, Ltd. 51,000 1,434,862
Tobu Railway Co., Ltd. 70,000 323,547
Tohoku Electric Power Co., Ltd. 7,200 128,336
Tokai Bank, Ltd. 60,000 618,611
Tokio Marine & Fire Insurance Co., Ltd. 71,000 930,537
Tokyo Electric Power Co., Ltd. 34,800 732,792
Tokyo Gas Co., Ltd. 90,000 250,066
Tokyu Corp. 70,000 434,862
Toppan Printing Co., Ltd. 48,000 754,915
Toray Industries, Inc. 43,000 306,955
Tostem Corp. 10,000 276,977
Toto, Ltd. 17,600 216,828
Toyobo Co., Inc. 48,000 127,077
Toyota Motor Corp. 120,000 3,543,906
Yamaichi Securities Co., Ltd. 49,000 145,994
Yamanouchi Pharmaceutical Co., Ltd. 20,000 538,226
Yamato Transport Co., Ltd. 37,000 462,298
Yasuda Trust & Banking Co., Ltd. 38,000 145,426
-----------
61,429,589
-----------
MALAYSIA -- 1.9%
AMMB Holdings BHD 40,000 248,861
DCB Holdings BHD 37,000 117,297
Edaran Otomobil Nasional BHD 18,000 153,358
Golden Hope Plantations BHD 72,000 123,828
Hong Leong Properties BHD 53,000 60,277
Land & General BHD 39,000 44,819
Magnum Corp. Berhad 88,500 133,267
Malayan Banking BHD 51,000 535,566
Malaysian International Shipping
Corp., BHD 48,000 124,589
Multi-Purpose Holdings BHD 73,000 102,405
Perusahaan Otomobil Nasional BHD
Proton 40,000 187,042
Public Bank BHD 73,333 114,497
Resorts World BHD 40,000 120,468
Sime Darby Berhad 99,000 329,542
Technology Resources (Industries) BHD* 31,000 53,315
Telekom Malaysia BHD 121,500 568,139
Tenaga Nasional BHD 111,000 541,034
United Engineers (Malaysia) BHD 27,000 194,730
See Notes to Financial Statements.
61
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
MALAYSIA (CONTINUED)
YTL Corp., Berhad 19,500 $ 60,273
-----------
3,813,307
-----------
NETHERLANDS -- 5.0%
ABN AMRO Bank NV 46,840 873,774
Elsevier NV 33,801 565,073
ING Groep NV 27,562 1,271,336
Koninklijke PTT Nederland NV 15,908 624,320
Philips Electronics NV 15,922 1,140,996
Royal Dutch Petroleum Co. 77,912 4,054,442
Unilever NV 7,056 1,486,004
-----------
10,015,945
-----------
SINGAPORE -- 1.4%
Amcol Holdings., Ltd. 3,000 10
City Developments, Ltd. 23,000 225,175
Cycle & Carriage, Ltd. 7,000 72,448
D.B.S. Land, Ltd. 25,000 79,021
Development Bank of Singapore, Ltd. 22,750 286,364
First Capital Corporation, Ltd. 7,000 18,210
Fraser & Neave, Ltd. 13,200 94,154
Hotel Properties, Ltd. 11,000 18,692
Jurong Shipyard, Ltd. 2,000 8,671
Keppel Corp., Ltd. 30,000 133,217
Natsteel, Ltd. 10,000 25,455
Neptune Orient Lines, Ltd. 36,000 32,224
Oversea-Chinese Banking Corp., Ltd. 39,600 409,846
Parkway Holdings, Ltd. 3,000 13,427
Singapore Airlines, Ltd. 41,000 366,993
Singapore Press Holdings 11,000 221,538
Singapore Telecommunications, Ltd. 198,000 365,538
Straits Trading Co., Ltd. 14,000 30,545
United Industrial Corp., Ltd. 55,000 41,538
United Overseas Bank, Ltd. 28,382 291,759
United Overseas Land, Ltd. 4,000 5,427
-----------
2,740,252
-----------
SPAIN -- 2.3%
Autopistas Concesionaria Espanola SA 7,158 97,156
Banco Bilbao Vizcaya SA 7,180 583,268
Banco Central Hispano Americano SA 5,850 213,990
Banco Santander SA 16,299 502,188
Corporacion Bancaria de Espana SA 3,967 222,109
Corporacion Financiera Alba SA 1,229 155,887
Empresa Nacional de Electricidad SA 7,428 623,579
Fomento de Construcciones y Contratas SA 1,381 176,104
Gas Natural SDG SA 1,254 273,948
Iberdrola SA 40,774 514,690
Repsol SA 9,302 393,291
Tabacalera SA 1,381 74,134
Telefonica de Espana SA 28,499 823,928
-----------
4,654,272
-----------
SWEDEN -- 2.4%
AB Astra A 44,932 837,300
AB Astra B 14,532 258,594
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
SWEDEN (CONTINUED)
ABB AB-A 28,000 $ 393,141
ABB AB-B 3,500 48,916
AGA AB-A 9,700 131,802
Diligentia AB 700 8,515
Electrolux AB-B 600 43,326
Ericsson LM-B 28,600 1,126,975
Mauritz AB 3,510 125,819
Skandia Foersaekrings AB 2,100 77,451
Skandinaviska Enskilda Banken 19,000 205,306
Skanska AB-B 4,000 177,030
Stadshypotek AB-A 2,193 53,920
Stora Kopparbergs Berglags AB 18,650 301,682
Svenska Cellulosa AB-B 11,600 246,936
Svenska Handelsbanken-A 7,600 243,416
Swedish Match AB 34,109 114,763
Volvo AB-A 4,750 127,855
Volvo AB-B 9,750 261,178
-----------
4,783,925
-----------
SWITZERLAND -- 6.2%
ABB AG 320 484,882
Credit Suisse Group 5,880 755,914
Holderbank Financiere Glarus AG-B 467 441,545
Nestle SA 1,367 1,805,171
Novartis AG 159 254,226
Novartis AG-Bearer 2,046 3,274,161
Roche Holding AG-Basel 69 948,543
Roche Holding AG-Genussshein 224 2,028,056
Schweizerische Bankgesellschaft (SBG) 898 205,644
Schweizerische Bankgesellschaft (SBG) 640 732,808
Schweizerische Rueckversicherungs-
Gesellschaft 400 566,335
Schweizerischer Bankverein 2,550 682,739
Zurich Versicherungs-Gesellschaft 800 318,684
-----------
12,498,708
-----------
UNITED KINGDOM -- 17.1%
Abbey National 19,978 272,514
Arjo Wiggins Appleton P.L.C. 45,867 134,288
Barclays P.L.C. 26,034 516,226
Bass P.L.C. 22,158 270,183
BAT Industries P.L.C. 47,541 425,079
BG P.L.C. 129,129 474,721
Bicc P.L.C. 14,353 42,142
Boc Group P.L.C. 22,140 384,872
Boots Co., P.L.C. 50,608 592,251
British Aerospace P.L.C. 20,228 449,723
British Airways P.L.C. 41,666 474,436
British Petroleum Co., P.L.C. 191,812 2,381,927
British Sky Broadcasting Group P.L.C. 34,821 254,869
British Steel P.L.C. 78,209 193,850
British Telecommunications P.L.C. 203,174 1,507,391
BTR P.L.C. 66,932 228,807
Cable & Wireless P.L.C. 73,500 675,527
Cadbury Schweppes P.L.C. 34,724 309,323
Caradon P.L.C. 33,795 113,282
See Notes to Financial Statements.
62
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
UNITED KINGDOM (CONTINUED)
Caradon P.L.C. Class B 9,537 $ 15,627
Centrica P.L.C. 129,129 157,345
Coats Viyella P.L.C. 53,859 114,233
Commercial Union P.L.C. 24,404 256,364
De La Rue P.L.C. 2,677 16,432
EMI Group P.L.C. 18,432 330,379
General Electric Co., P.L.C. 97,518 582,374
Glaxo Wellcome P.L.C. 109,694 2,262,702
Granada Group P.L.C. 7,490 98,431
Grand Metropolitan P.L.C. 72,787 704,087
Great Universal Stores P.L.C. 40,557 410,197
Guinness P.L.C. 74,909 732,713
Hanson P.L.C. 24,339 120,859
HSBC Holdings P.L.C. 61,325 1,815,852
HSBC Holdings P.L.C. (75P) 29,995 922,340
Imperial Chemical Industries P.L.C. 31,450 437,109
Kingfisher P.L.C. 37,706 427,777
Ladbroke Group P.L.C. 51,350 200,739
Land Securities P.L.C. 33,294 469,384
Legal & General Group P.L.C. 37,644 253,931
Lloyds TSB P.L.C. 117,671 1,205,794
Marks & Spencer P.L.C. 96,390 798,517
National Grid Group P.L.C. 31,779 116,037
National Power P.L.C. 43,291 375,916
Pearson P.L.C. 24,926 288,385
Peninsular & Oriental Steam
Navigation Co. 27,683 276,304
Prudential Corp.,P.L.C. 105,377 1,019,338
Rank Group P.L.C. 37,790 239,196
Redland P.L.C. 37,726 213,688
Reed International P.L.C. 65,552 634,646
Reuters Holdings P.L.C. 53,415 562,458
Rexam P.L.C. 6,400 26,989
RMC Group P.L.C. 17,450 283,169
Rolls-Royce P.L.C. 61,053 233,084
Royal Bank of Scotland Group P.L.C. 37,037 344,714
RTZ Corp., P.L.C. 44,726 778,614
Safeway P.L.C. 31,007 179,241
Sainsbury(J.) P.L.C. 52,750 319,847
Schroders P.L.C. 7,830 213,744
Scottish & Newcastle P.L.C. 32,882 353,630
Scottish Power P.L.C. 49,174 319,842
Sears P.L.C. 119,329 132,998
Smith Industries P.L.C. 27,841 356,382
SmithKline Beecham P.L.C. 81,328 1,495,621
Tesco P.L.C. 63,500 390,311
Thames Water P.L.C. 22,500 259,568
Thorn P.L.C. 18,432 52,738
Unilever P.L.C. Holdings 24,175 692,303
United Biscuits Holdings P.L.C. 37,933 129,043
United Utilities P.L.C. 17,982 197,576
Vodafone Group P.L.C. 96,045 467,330
Wolseley P.L.C. 15,355 119,669
Zeneca Group P.L.C. 30,712 1,014,636
-----------
34,121,614
-----------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK (CONTINUED)
UNITED STATES -- 0.0%
Millennium Chemicals 950 $ 21,612
------------
TOTAL COMMON STOCK
(Cost $155,383,211) 185,307,805
------------
RIGHTS AND WARRANTS -- 0.0%
Cie Generale des Eaux* 3,750 2,247
DCB Holdings* 1,850 0
Granges AB* 300 4,038
Hong Kong China Gas Warrants* 6,200 0
Rauma OY* 339 7,773
Skanska AB-B* 4,000 2,718
Volvo-A* 14,500 4,597
------------
TOTAL RIGHTS AND WARRANTS
(Cost $2,365) 21,373
------------
CURRENCY -- 0.0%
Italian Lira
(Cost $3) 4,206 2
------------
TEMPORARY INVESTMENTS -- 6.8%
Dreyfus Cash Management Plus #719 6,759,521 6,759,521
Goldman Sachs Financial Square
Money Market Portfolio 6,759,676 6,759,676
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $13,519,197) 13,519,197
------------
TOTAL INVESTMENTS -- 99.5%
(Cost $168,904,776) 198,848,377
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.5% 1,081,596
------------
NET ASSETS -- 100.0%
Applicable to 11,669,112 and 55,350
shares beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 9) $199,929,973
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($198,986,182/11,669,112) $17.05
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE ($943,791/55,350) $17.05
======
MAXIMUM PUBLIC OFFERING PRICE
PER CLASS A SHARE (NOTE 6) $17.85
======
- ------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
63
<PAGE>
HARRIS INSIGHT FUNDS
HEMISPHERE FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
UNITED STATES -- COMMON STOCK -- 42.2%
AEROSPACE -- 3.0%
Gencorp, Inc. 7,000 $161,875
Litton Industries, Inc.* 800 38,650
Textron, Inc. 2,800 185,850
--------
386,375
--------
ALCOHOLIC BEVERAGES & TOBACCO -- 0.6%
Philip Morris Companies, Inc. 1,800 79,875
--------
APPAREL, TEXTILES -- 2.2%
Galey & Lord, Inc.* 3,000 56,250
Guilford Mills, Inc. 3,000 62,437
Nike, Inc. 2,400 140,100
Tultex Corp.* 4,000 24,500
--------
283,287
--------
AUTO RELATED -- 0.2%
Arvin Industries, Inc. 1,000 27,250
--------
AUTOS -- 2.2%
Chrysler Corp. 2,600 85,312
Ford Motor Co., Inc. 2,800 105,700
General Motors Corp. 1,700 94,669
--------
285,681
--------
BANKS -- 2.2%
BankAmerica Corp. 2,000 129,125
Bankers Trust New York Corp. 700 60,900
Chase Manhattan Corp. 1,000 97,062
--------
287,087
--------
BUSINESS SERVICES -- 0.1%
Aviall, Inc.* 1,000 14,000
--------
CONSTRUCTION -- 1.4%
Pulte Corp. 2,000 69,125
USG Corp.* 3,300 120,450
--------
189,575
--------
CONTAINERS -- 0.5%
Owens-Illinois, Inc.* 2,200 68,200
--------
DRUGS -- 4.7%
Abbott Laboratories, Inc. 1,000 66,750
Bristol-Myers Squibb Co. 2,000 162,000
Merck & Co., Inc. 2,000 207,000
Rhone-Poulenc Rorer, Inc. 1,000 90,875
Schering Plough Corp. 2,000 95,750
--------
622,375
--------
ELECTRIC & GAS -- 1.1%
Edison International 5,800 144,275
--------
SHARES VALUE(DAGGER)
-------- ------------
UNITED STATES -- COMMON STOCK (CONTINUED)
ELECTRONICS -- 1.6%
Avnet, Inc. 2,300 $132,250
Esco Electronics Corp.* 1,000 12,625
Harmon Industries, Inc. 1,000 21,500
Lucent Technologies, Inc. 615 44,319
--------
210,694
--------
FOOD & BEVERAGES -- 0.8%
IBP, Inc. 4,600 106,950
--------
FOREST PRODUCTS & PAPER -- 1.6%
Georgia Pacific Corp. 2,400 204,900
--------
HEALTH CARE SERVICES -- 1.5%
Allegiance Corp. 580 15,805
Becton, Dickinson & Co. 2,600 131,625
Dexter Corp. 1,500 48,000
--------
195,430
--------
INSURANCE -- 3.5%
American Bankers Insurance Co. 1,800 113,850
Cigna Corp. 1,350 239,625
Travelers Group, Inc. 1,600 100,900
--------
454,375
--------
MACHINERY & EQUIPMENT -- 1.9%
Gardner Denver Machinery, Inc.* 6,400 190,400
Parker-Hannifin Corp. 1,000 60,687
--------
251,087
--------
MISCELLANEOUS FINANCE -- 2.8%
Bear Stearns Companies, Inc. 3,292 112,545
Comdisco, Inc. 4,800 124,800
Merrill Lynch, Pierce, Fenner, Inc. 2,200 131,175
--------
368,520
--------
OFFICE EQUIPMENT -- 4.2%
Compaq Computer, Inc.* 1,500 148,875
Dell Computer, Inc.* 2,000 234,750
International Business Machines, Inc. 1,400 126,263
Storage Technology Corp.* 1,000 44,500
--------
554,388
--------
OIL & GAS -- 4.5%
Ashland, Inc. 400 18,550
El Paso Natural Gas 1,000 55,000
Mobil Corp. 2,000 139,750
Phillips Petroleum Co. 4,150 181,563
Texaco, Inc. 1,750 190,313
--------
585,176
--------
RETAIL -- 0.6%
Dayton Hudson Corp. 400 21,275
Sears, Roebuck & Co. 1,000 53,750
--------
75,025
--------
See Notes to Financial Statements.
64
<PAGE>
HARRIS INSIGHT FUNDS
HEMISPHERE FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
UNITED STATES -- COMMON STOCK (CONTINUED)
RETAIL - FOOD -- 0.3%
Supervalu, Inc. 1,000 $ 34,500
---------
TELEPHONES -- 0.7%
Sprint Corp. 1,800 94,725
---------
TOTAL UNITED STATES -- COMMON STOCK
(Cost $4,019,667) 5,523,750
---------
UNITED STATES -- TEMPORARY
INVESTMENTS -- 3.0%
Dreyfus Cash Management Plus #719 195,383 195,383
Goldman Sachs Financial Square
Money Market Portfolio 195,341 195,341
---------
TOTAL UNITED STATES -- TEMPORARY INVESTMENTS
(Cost $390,724) 390,724
---------
CANADA -- COMMON STOCK -- 26.1%
BANKS -- 4.4%
Bank of Nova Scotia 4,600 201,448
Canadian Imperial Bank of Commerce 7,300 183,887
Toronto Dominion Bank 6,400 189,475
---------
574,810
---------
COMMUNICATION & MEDIA -- 2.0%
Call-Net Enterprises 4,500 73,290
Thomson Corp. 3,300 75,961
Torstar Corp. 3,500 108,940
---------
258,191
---------
CONGLOMERATES -- 0.9%
Canadian Pacific, Ltd. 4,200 119,479
---------
CONSUMER PRODUCTS -- 1.0%
Cinram Ltd. 2,700 68,404
CCL Industries, Inc. 5,000 61,708
---------
130,112
---------
GOLD & SILVER -- 1.0%
Barrick Gold Corp. 3,200 69,606
Dayton Mining Corp.* 17,900 62,193
---------
131,799
---------
INDUSTRIAL PRODUCTS -- 4.8%
ATS Automation Tooling System, Inc.* 4,300 84,039
Bombardier, Inc. 3,900 88,360
CAE, Inc. 12,900 102,714
Northern Telecom Ltd. 2,000 180,166
Nova Corp. 8,500 72,602
United Dominion Industries, Ltd. 4,000 98,154
---------
626,035
---------
MERCHANDISING -- 2.4%
Extendicare, Inc.* 7,800 118,567
Finning Ltd. 7,500 88,491
Westburne, Inc. 8,700 104,539
---------
311,597
---------
SHARES VALUE(DAGGER)
-------- ------------
CANADA -- COMMON STOCK (CONTINUED)
METALS & MINING -- 2.2%
Alcan Aluminium Ltd. 3,100 $ 105,689
Inco, Ltd. 3,000 89,577
Noranda, Inc. 4,500 96,906
---------
292,172
---------
OIL & GAS -- 3.7%
Anderson Exploration Ltd.* 8,800 113,384
Canadian Natural Resources Ltd.* 3,400 88,230
Canadian Occidental Petroleum Ltd. 3,500 78,538
Petro-Canada 6,000 97,286
Suncor Energy Inc. 4,000 107,130
---------
484,568
---------
PAPER-FOREST PRODUCTS -- 1.2%
Abitibi-Price, Inc. 4,500 80,293
Donohue, Inc. 3,700 80,347
---------
160,640
---------
REAL ESTATE DEVELOPMENT -- 0.5%
Intrawest Corp. 4,200 69,772
---------
TRANSPORTATION -- 0.8%
Laidlaw, Inc. 7,500 103,420
---------
UTILITIES -- 1.2%
BCE, Inc. 5,800 161,216
---------
TOTAL CANADA -- COMMON STOCK
(Cost $2,998,840) 3,423,811
---------
MEXICO -- COMMON STOCK -- 27.4%
ALCOHOLIC BEVERAGES & TOBACCO -- 0.7%
Empresas La Moderna S.A. de C.V 18,000 93,457
---------
AUTO PARTS -- 1.2%
San Luis Corp. S.A. de C.V 21,000 154,969
---------
BEVERAGES -- 5.1%
Coca Cola Femsa S.A. de C.V 49,000 255,025
Fomento Economico Mexicano SA-Series B 41,000 243,799
Grupo Modelo S.A. de C.V.-Series C 25,000 171,601
---------
670,425
---------
BROADCASTING -- 2.3%
Grupo Televisa S.A. de C.V.* 8,000 121,089
Telefonos de Mexico S.A. de C.V 74,000 176,755
---------
297,844
---------
BUILDING & CONSTRUCTION -- 3.5%
Apasco S.A. de C.V 23,000 162,499
Empresas ICA Sociedad Controladora
S.A. de C.V.* 13,000 206,738
Grupo Cementos de Chihuahua S.A. de
C.V.-Series B* 76,000 88,664
---------
457,901
---------
See Notes to Financial Statements.
65
<PAGE>
HARRIS INSIGHT FUNDS
HEMISPHERE FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
MEXICO -- COMMON STOCK (CONTINUED)
CONGLOMERATES -- 0.9%
Desc S.A. de C.V.-Series B 16,000 $ 116,261
Desc S.A. de C.V.-Series C 120 860
---------
117,121
---------
ELECTRONICS -- 1.6%
Grupo Elektra S.A. de C.V.-CPO 19,000 206,613
---------
FOOD & AGRICULTURE -- 1.7%
Gruma S.A. de C.V.-Series B* 17,300 80,470
Grupo Industrial Maseca S.A. de C.V.-
Series B 133,000 145,465
---------
225,935
---------
FOREST PRODUCTS & PAPER -- 1.6%
Kimberly-Clark de Mexico S.A. de C.V.-
Series A 52,000 205,921
---------
METALS -- 2.2%
Altos Hornos de Mexico S.A.* 43,500 104,997
Hylsamex S.A. de C.V.-BCP 28,000 143,969
Industrias Penoles S.A.-CP 8,000 38,117
---------
287,083
---------
MULTI-INDUSTRY -- 3.9%
Alfa, S.A. de C.V.-Series A 30,573 208,317
Carso Global Telecom S.A. de
C.V.-Series A-1* 22,841 90,738
Grupo Carso S.A. de C.V.-Series A-1 31,000 215,513
---------
514,568
---------
RAW MATERIALS -- 1.2%
Cemex S.A. de C.V.-CPO 37,000 158,150
---------
RETAIL -- 1.0%
Cifra S.A. de C.V.-Series C* 82,000 130,507
---------
TRANSPORTATION -- 0.5%
Transportacion Maritima Mexicana
S.A. de C.V 12,000 73,619
---------
TOTAL MEXICO -- COMMON STOCK
(Cost $2,880,562) 3,594,113
---------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- ---------- -------- -----------
MEXICO -- TREASURY BILLS -- 1.0%
Cetes
(Cost $131,207)
20.300% 07/24/97 MXP 1,042 $ 130,992
-----------
TOTAL INVESTMENTS -- 99.7%
(Cost $10,421,000) 13,063,390
-----------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.3% 43,682
-----------
NET ASSETS -- 100.0%
Applicable to 1,000,001 and 12,399
shares outstanding of Institutional Class
and Class A, respectively, $.001 par value;
100,000,000 authorized shares (Note 9) $13,107,072
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($12,946,968/1,000,001) $12.95
======
NET ASSET VALUE AND REDEMPTION
PRICE PER CLASS A SHARE ($160,104/12,399) $12.91
======
MAXIMUM PUBLIC OFFERING PRICE
PER CLASS A SHARE (NOTE 6) $13.52
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
MXP -- Mexican Pesos
See Notes to Financial Statements.
66
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE PERIOD ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
MONEY MARKET FUNDS FIXED INCOME FUNDS
------------------------------------ -------------------------------------------------------------
SHORT/ INTERMEDIATE INTERMEDIATE
GOVERNMENT MONEY TAX-EXEMPT INTERMEDIATE BOND GOVERNMENT TAX-EXEMPT TAX-EXEMPT
MONEY FUND FUND MONEY FUND FUND FUND FUND(1) FUND FUND
---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................... $7,723,988 $29,322,653 $10,579,166 $9,155,901 $2,230,702 $1,743,203 $4,991,275 $4,467,288
Dividends .................. -- -- -- -- -- -- -- --
Foreign taxes withheld ..... -- -- -- -- -- -- -- --
---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------
Total investment income .... 7,723,988 29,322,653 10,579,166 9,155,901 2,230,702 1,743,203 4,991,275 4,467,288
---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------
EXPENSES:
Investment advisory fee
(Note 4) ................. 159,831 537,111 317,433 931,568 210,295 163,062 596,807 501,339
Rule 12b-1 fee-Class A
(Note 5) ................. 410,420 854,450 315,568 5,614 292 4 53 66
Shareholder services fee
(Note 4) ................. 26,052 77,273 59,947 19,724 4,608 3,427 13,912 10,054
Administration fee (Note 4) 128,124 432,538 264,240 181,446 43,440 34,319 135,951 115,801
Custodian fee (Note 4) ..... 16,740 58,032 38,518 15,505 8,279 3,042 10,721 9,322
Directors' fees and expenses 6,613 24,124 9,270 6,274 1,422 1,009 734 857
Audit fee .................. 6,936 25,743 19,677 6,604 1,637 1,313 4,922 4,140
Legal fee .................. 3,488 12,823 7,480 3,318 786 579 2,491 2,088
Amortization of organization
expenses (Note 2f) ....... -- -- -- -- 1,981 1,089 1,981 1,981
Reports to shareholders .... 1,863 6,851 3,996 1,773 420 309 1,331 1,115
Registration fees .......... 27,173 30,232 14,934 3,594 9,632 7,020 8,955 8,415
Miscellaneous .............. 10,841 28,771 22,845 10,187 4,221 2,378 18,432 13,915
---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------
Total expenses ............. 798,081 2,087,948 1,073,908 1,185,607 287,013 217,551 796,290 669,093
Less fee waivers and expense
reimbursements
(Notes 4,5) .............. (121,175) (283,441) (57,854) (381,512) (92,600) (92,114) (482) (564)
---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------
Net expenses ............. 676,906 1,804,507 1,016,054 804,095 194,413 125,437 795,808 668,529
---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------
NET INVESTMENT INCOME .... 7,047,082 27,518,146 9,563,112 8,351,806 2,036,289 1,617,766 4,195,467 3,798,759
---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
(NOTE 7):
Net realized gain/(loss) from:
Investment transactions .. -- 8,608 (804) (764,555) (70,648) (389,206) (287,990) 490,509
Futures contracts ........ -- -- -- -- -- -- -- --
Foreign currency
transactions ........... -- -- -- -- -- -- -- --
Net change in unrealized
appreciation/(depreciation)
on:
Investments .............. -- -- -- 146,489 286,248 1,057,473 123,206 (299,493)
Futures contracts ........ -- -- -- -- 101,562 -- -- --
Foreign currency
transactions ........... -- -- -- -- -- -- -- --
---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS . -- 8,608 (804) (618,066) 317,162 668,267 (164,784) 191,016
---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------
INCREASE/(DECREASE) IN NET
ASSETS FROM OPERATIONS ..... $7,047,082 $27,526,754 $ 9,562,308 $7,733,740 $2,353,451 $2,286,033 $4,030,683 $3,989,775
========== =========== =========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
----------------------- ----------------------------------------------------------------
CONVERTIBLE EQUITY SMALL-CAP SMALL-CAP
CONVERTIBLE SECURITIES EQUITY INCOME GROWTH OPPORTUNITY VALUE
FUND FUND(1) FUND FUND FUND FUND FUND(1)
-------- ---------- ------------ ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................... $ 15,785 $ 473,626 $ 759,011 $ 22,629 $ 61,404 $ 525,992 $ 36,812
Dividends .................. 13,454 342,198 6,196,383 433,422 544,801 754,257 242,505
Foreign taxes withheld ..... -- -- (93,152) (3,929) (98) -- --
-------- ---------- ------------ ---------- ----------- ----------- ----------
Total investment income .... 29,239 815,824 6,862,242 452,122 606,107 1,280,249 279,317
-------- ---------- ------------ ---------- ----------- ----------- ----------
EXPENSES:
Investment advisory fee
(Note 4) ................. 4,077 109,976 2,356,379 120,034 383,098 885,194 115,127
Rule 12b-1 fee-Class A
(Note 5) ................. -- 2 11,065 462 767 769 --
Shareholder services fee
(Note 4) ................. 620 2,075 47,764 3,093 7,379 13,201 1,972
Administration fee (Note 4) 660 21,437 458,478 23,368 57,950 120,281 19,497
Custodian fee (Note 4) ..... 2,070 1,662 36,758 4,093 6,145 15,278 3,139
Directors' fees and expenses 28 627 7,464 804 1,986 4,094 561
Audit fee .................. 29 823 16,803 851 2,116 4,410 757
Legal fee .................. 15 362 8,319 427 1,058 2,195 330
Amortization of organization
expenses (Note 2f) ....... -- 1,089 -- 1,981 1,981 1,981 1,089
Reports to shareholders .... 8 193 4,445 228 565 1,173 177
Registration fees .......... 1,388 6,059 14,960 5,035 10,204 6,350 3,842
Miscellaneous .............. 1,683 2,168 19,145 2,103 3,522 10,304 2,118
-------- ---------- ------------ ---------- ----------- ----------- ----------
Total expenses ............. 10,578 146,473 2,981,580 162,479 476,771 1,065,230 148,609
Less fee waivers and expense
reimbursements
(Notes 4,5) .............. (5,918) (1,931) -- (2,542) (7,775) (2,214) (6,139)
-------- ---------- ------------ ---------- ----------- ----------- ----------
Net expenses ............. 4,660 144,542 2,981,580 159,937 468,996 1,063,016 142,470
-------- ---------- ------------ ---------- ----------- ----------- ----------
NET INVESTMENT INCOME .... 24,579 671,282 3,880,662 292,185 137,111 217,233 136,847
-------- ---------- ------------ ---------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
(NOTE 7):
Net realized gain/(loss) from:
Investment transactions .. 162,279 2,117,207 43,960,578 1,490,475 3,045,675 11,631,652 2,022,489
Futures contracts ........ -- -- -- -- -- -- --
Foreign currency
transactions ........... -- -- -- -- -- -- --
Net change in unrealized
appreciation/(depreciation)
on:
Investments .............. (81,019) (439,526) 62,956,011 3,832,498 12,454,949 5,709,847 3,725,829
Futures contracts ........ -- -- -- -- -- -- --
Foreign currency
transactions ........... -- -- -- -- -- -- --
-------- ---------- ------------ ---------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS . 81,260 1,677,681 106,916,589 5,322,973 15,500,624 17,341,499 5,748,318
-------- ---------- ------------ ---------- ----------- ----------- ----------
INCREASE/(DECREASE) IN NET
ASSETS FROM OPERATIONS ..... $105,839 $2,348,963 $110,797,251 $5,615,158 $15,637,735 $17,558,732 $5,885,165
======== ========== ============ ========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
---------------------------------------------------
INDEX BALANCED INTERNATIONAL HEMISPHERE
FUND FUND(1) FUND FUND
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................... $ 103,506 $ 536,812 $ 170,171 $ 24,217
Dividends .................. 1,589,283 143,159 2,013,429 107,702
Foreign taxes withheld ..... (10,200) (1,439) (183,476) (3,321)
----------- ---------- ----------- ----------
Total investment income .... 1,682,589 678,532 2,000,124 128,598
----------- ---------- ----------- ----------
EXPENSES:
Investment advisory fee
(Note 4) ................. 215,983 94,524 767,884 53,483
Rule 12b-1 fee-Class A
(Note 5) ................. 1,032 -- 830 181
Shareholder services fee
(Note 4) ................. 12,725 2,451 11,065 957
Administration fee (Note 4) 116,629 21,435 104,967 8,389
Custodian fee (Note 4) ..... 15,405 2,275 65,182 16,645
Directors' fees and expenses 3,904 625 3,283 279
Audit fee .................. 4,335 826 3,687 295
Legal fee .................. 2,130 362 1,786 148
Amortization of organization
expenses (Note 2f) ....... 1,981 1,089 1,981 6,938
Reports to shareholders .... 1,138 194 954 79
Registration fees .......... 12,654 7,223 10,899 11,044
Miscellaneous .............. 14,641 7,002 52,326 4,862
----------- ---------- ----------- ----------
Total expenses ............. 402,557 138,006 1,024,844 103,300
Less fee waivers and expense
reimbursements
(Notes 4,5) .............. (12,752) -- (157) (11,008)
----------- ---------- ----------- ----------
Net expenses ............. 389,805 138,006 1,024,687 92,292
----------- ---------- ----------- ----------
NET INVESTMENT INCOME .... 1,292,784 540,526 975,437 36,306
----------- ---------- ----------- ----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
(NOTE 7):
Net realized gain/(loss) from:
Investment transactions .. 5,527,268 (372,302) 526,166 464,446
Futures contracts ........ 392,720 971 -- --
Foreign currency
transactions ........... -- -- (10,700) (32,009)
Net change in unrealized
appreciation/(depreciation)
on:
Investments .............. 26,367,436 4,096,631 19,926,468 1,465,964
Futures contracts ........ 49,300 -- -- --
Foreign currency
transactions ........... -- -- (12,012) 1,870
----------- ---------- ----------- ----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS . 32,336,724 3,725,300 20,429,922 1,900,271
----------- ---------- ----------- ----------
INCREASE/(DECREASE) IN NET
ASSETS FROM OPERATIONS ..... $33,629,508 $4,265,826 $21,405,359 $1,936,577
=========== ========== =========== ==========
<FN>
- -----------
(1) For the period 03/24/97 (commencement of operations) to 06/30/97.
</FN>
</TABLE>
See Notes to Financial Statements.
68-69
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE PERIOD ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
MONEY MARKET FUNDS FIXED INCOME FUNDS
------------------------------------------ ------------------------------------------------------
SHORT/ INTERMEDIATE INTERMEDIATE
GOVERNMENT MONEY TAX-EXEMPT INTERMEDIATE BOND GOVERNMENT TAX-EXEMPT
MONEY FUND FUND MONEY FUND FUND FUND FUND(1) FUND
------------ -------------- ------------ ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income ......... $ 7,047,082 $ 27,518,146 $ 9,563,112 $ 8,351,806 $ 2,036,289 $ 1,617,766 $ 4,195,467
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency transactions -- 8,608 (804) (764,555) (70,648) (389,206) (287,990)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency transactions -- -- -- 146,489 387,810 1,057,473 123,206
------------ -------------- ------------ ------------ ------------ ----------- ------------
Increase/ (decrease) in net
assets from operations ...... 7,047,082 27,526,754 9,562,308 7,733,740 2,353,451 2,286,033 4,030,683
------------ -------------- ------------ ------------ ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ......... (1,198,634) (14,941,829) (6,833,818) (8,225,148) (2,027,463) (1,617,644) (4,194,617)
Class A (2) ................. (5,848,448) (12,576,317) (2,731,821) (135,608) (7,028) (122) (850)
------------ -------------- ------------ ------------ ------------ ----------- ------------
Total distributions from net
investment income ........... (7,047,082) (27,518,146) (9,565,639) (8,360,756) (2,034,491) (1,617,766) (4,195,467)
------------ -------------- ------------ ------------ ------------ ----------- ------------
CAPITAL SHARE TRANSACTIONS :
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ......... 14,585,111 208,103,592 (22,207,039) 18,757,219 65,598,808 90,492,436 (11,313,838)
Class A ..................... 29,839,445 57,019,273 (1,580,054) 327,138 222,771 26,017 147,026
------------ -------------- ------------ ------------ ------------ ----------- ------------
Increase/(decrease) in net
assets from capital share
transactions ................ 44,424,556 265,122,865 (23,787,093) 19,084,357 65,821,579 90,518,453 (11,166,812)
------------ -------------- ------------ ------------ ------------ ----------- ------------
Total increase/(decrease) in
net assets .................. 44,424,556 265,131,473 (23,790,424) 18,457,341 66,140,539 91,186,720 (11,331,596)
NET ASSETS:
Beginning of period ........... 243,242,336 830,630,322 567,253,097 260,005,358 43,272,522 40 208,690,462
------------ -------------- ------------ ------------ ------------ ----------- ------------
End of period .................$287,666,892 $1,095,761,795 $543,462,673 $278,462,699 $109,413,061 $91,186,760 $197,358,866
============ ============== ============ ============ ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS EQUITY FUNDS
-------------------------------------- ----------------------------------------------------
CONVERTIBLE EQUITY SMALL-CAP
TAX-EXEMPT CONVERTIBLE SECURITIES EQUITY INCOME GROWTH OPPORTUNITY
FUND FUND FUND(1) FUND FUND FUND FUND
------------ ---------- ----------- ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income ......... $ 3,798,759 $ 24,579 $ 671,282 $ 3,880,662 $ 292,185 $ 137,111 $ 217,233
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency transactions 490,509 162,279 2,117,207 43,960,578 1,490,475 3,045,675 11,631,652
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency transactions (299,493) (81,019) (439,526) 62,956,011 3,832,498 12,454,949 5,709,847
------------ ---------- ----------- ------------ ----------- ----------- ------------
Increase/ (decrease) in net
assets from operations ...... 3,989,775 105,839 2,348,963 110,797,251 5,615,158 15,637,735 17,558,732
------------ ---------- ----------- ------------ ----------- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ......... (3,797,610) -- (609,854) (39,187) (275,556) (133,146) (148,763)
Class A (2) ................. (1,149) (22,396) (116) (3,943,084) (2,594) (129) --
------------ ---------- ----------- ------------ ----------- ----------- ------------
Total distributions from net
investment income ........... (3,798,759) (22,396) (609,970) (3,982,271) (278,150) (133,275) (148,763)
------------ ---------- ----------- ------------ ----------- ----------- ------------
CAPITAL SHARE TRANSACTIONS :
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ......... 3,958,273 -- 56,347,446 138,277,923 (326,933) 5,187,630 48,509,802
Class A ..................... 114,590 (259,028) 12,212 1,365,381 131,561 341,191 308,970
------------ ---------- ----------- ------------ ----------- ----------- ------------
Increase/(decrease) in net
assets from capital share
transactions ................ 4,072,863 (259,028) 56,359,658 139,643,304 (195,372) 5,528,821 48,818,772
------------ ---------- ----------- ------------ ----------- ----------- ------------
Total increase/(decrease) in
net assets .................. 4,263,879 (175,585) 58,098,651 246,458,284 5,141,636 21,033,281 66,228,741
NET ASSETS:
Beginning of period ........... 165,426,053 1,180,997 40 576,192,032 32,058,131 76,912,957 150,748,509
------------ ---------- ----------- ------------ ----------- ----------- ------------
End of period .................$169,689,932 $1,005,412 $58,098,691 $822,650,316 $37,199,767 $97,946,238 $216,977,250
============ ========== =========== ============ =========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-----------------------------------------------------------------
SMALL-CAP
VALUE INDEX BALANCED INTERNATIONAL HEMISPHERE
FUND(1) FUND FUND(1) FUND FUND
----------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income ......... $ 136,847 $ 1,292,784 $ 540,526 $ 975,437 $ 36,306
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency transactions 2,022,489 5,919,988 (371,331) 515,466 432,437
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency transactions 3,725,829 26,416,736 4,096,631 19,914,456 1,467,834
----------- ------------ ----------- ------------ -----------
Increase/ (decrease) in net
assets from operations ...... 5,885,165 33,629,508 4,265,826 21,405,359 1,936,577
----------- ------------ ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ......... (114,651) (1,233,009) (514,703) (892,480) --
Class A (2) ................. -- (3,824) (11) (2,793) --
----------- ------------ ----------- ------------ -----------
Total distributions from net
investment income ........... (114,651) (1,236,833) (514,714) (895,273) --
----------- ------------ ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS :
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ......... 55,215,658 84,131,108 56,688,546 68,806,852 --
Class A ..................... -- 1,007,502 1,211 268,479 1,300
----------- ------------ ----------- ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ................ 55,215,658 85,138,610 56,689,757 69,075,331 1,300
----------- ------------ ----------- ------------ -----------
Total increase/(decrease) in
net assets .................. 60,986,172 117,531,285 60,440,869 89,585,417 1,937,877
NET ASSETS:
Beginning of period ........... 40 144,104,100 40 110,344,556 11,169,195
----------- ------------ ----------- ------------ -----------
End of period .................$60,986,212 $261,635,385 $60,440,909 $199,929,973 $13,107,072
=========== ============ =========== ============ ===========
<FN>
- -----------
(1) For the period 03/24/97 (commencement of operations) to 06/30/97.
(2) Shares of Convertible Fund are not designated as Class A shares.
</FN>
</TABLE>
See Notes to Financial Statements.
70-71
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
MONEY MARKET FUNDS
-----------------------------------------
GOVERNMENT MONEY TAX-EXEMPT
MONEY FUND FUND MONEY FUND
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income ............ $12,415,407 $40,121,421 $19,247,394
Net realized gain/(loss) on
investment transactions,
futures contracts and foreign
currency transactions .......... (72) (2,590) 11,969
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and foreign
currency transactions .......... -- -- --
------------ ------------ ------------
Increase in net assets
from operations ................ 12,415,335 40,118,831 19,259,363
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ............ (1,831,254) (16,876,839) (14,006,346)
Class A(4) ..................... (10,584,153) (23,255,431) (5,241,048)
------------ ------------ ------------
Total distributions from net
investment income .............. (12,415,407) (40,132,270) (19,247,394)
------------ ------------ ------------
Net realized gains on investments:
Institutional Class ............ -- -- --
Class A ........................ -- -- --
------------ ------------ ------------
Total distributions from net
realized gains ................. -- -- --
------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS :
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ............ 18,802,992 270,581,554 176,249,984
Class A ........................ (58,353,363) 37,636,908 8,274,685
------------ ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions ................... (39,550,371) 308,218,462 184,524,669
------------ ------------ ------------
Total increase/(decrease) in
net assets ..................... (39,550,443) 308,205,023 184,536,638
NET ASSETS:
Beginning of period .............. 282,792,779 522,425,299 382,716,459
------------ ------------ ------------
End of period .................... $243,242,336 $830,630,322 $567,253,09
============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
------------------------------------------------------------------
SHORT/ INTERMEDIATE
INTERMEDIATE BOND TAX-EXEMPT TAX-EXEMPT CONVERTIBLE
FUND FUND(3) FUND(1) FUND(1) FUND
------------ ----------- ------------ ------------ ----------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income ............ $13,706,691 $1,377,637 $7,934,409 $6,345,622 $49,188
Net realized gain/(loss) on
investment transactions,
futures contracts and foreign
currency transactions .......... (952,341) 250,406 846,717 3,668,482 74,470
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and foreign
currency transactions .......... (3,937,487) 196,171 (3,615,528) (5,155,162) 94,688
------------ ----------- ------------ ------------ ----------
Increase in net assets
from operations ................ 8,816,863 1,824,214 5,165,598 4,858,942 218,346
------------ ----------- ------------ ------------ ----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ............ (12,576,121) (1,376,263) (7,932,978) (6,345,578) --
Class A(4) ..................... (1,124,909) (1,730) (1,431) (44) (49,323)
------------ ----------- ------------ ------------ ----------
Total distributions from net
investment income .............. (13,701,030) (1,377,993) (7,934,409) (6,345,622) (49,323)
------------ ----------- ------------ ------------ ----------
Net realized gains on investments:
Institutional Class ............ -- (139,009) (720,399) (3,479,679) --
Class A ........................ -- (378) -- (767) --
------------ ----------- ------------ ------------ ----------
Total distributions from net
realized gains ................. -- (139,387) (720,399) (3,480,446) --
------------ ----------- ------------ ------------ ----------
CAPITAL SHARE TRANSACTIONS :
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ............ 258,641,418 42,834,580 212,178,045 170,354,303 --
Class A ........................ (45,565,951) 131,068 1,527 38,776 (158,714)
------------ ----------- ------------ ------------ ----------
Increase/(decrease) in net
assets from capital share
transactions ................... 213,075,467 42,965,648 212,179,572 170,393,079 (158,714)
------------ ----------- ------------ ------------ ----------
Total increase/(decrease) in
net assets ..................... 208,191,300 43,272,482 208,690,362 165,425,953 10,309
NET ASSETS:
Beginning of period .............. 51,814,058 40 100 100 1,170,688
------------ ----------- ------------ ------------ ----------
End of period .................... $260,005,358 $43,272,522 $208,690,462 $165,426,053 $1,180,997
============ =========== ============ ============ ==========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
----------------------------------------------------------------------------------------------
EQUITY
EQUITY INCOME GROWTH SMALL-CAP INDEX INTERNATIONAL HEMISPHERE
FUND FUND(1) FUND(1) FUND(1) FUND(1) FUND(1) FUND(2)
------------ ----------- ----------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income ............ $7,240,840 $616,775 $246,149 $519,783 $2,072,648 $878,941 $58,963
Net realized gain/(loss) on
investment transactions,
futures contracts and foreign
currency transactions .......... 95,158,144 2,728,461 6,832,984 9,632,120 4,064,627 497,671 (191,108)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and foreign
currency transactions .......... (18,411,180) 568,752 4,142,193 8,437,066 12,126,424 2,857,490 1,175,177
------------ ----------- ----------- ------------ ------------ ------------ -----------
Increase in net assets
from operations ................ 83,987,804 3,913,988 11,221,326 18,588,969 18,263,699 4,234,102 1,043,032
------------ ----------- ----------- ------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ............ (6,952,962) (611,754) (249,564) (521,897) (2,071,983) (857,914) --
Class A(4) ..................... (294,553) (3,860) (492) (612) (1,087) (1,643) --
------------ ----------- ----------- ------------ ------------ ------------ -----------
Total distributions from net
investment income .............. (7,247,515) (615,614) (250,056) (522,509) (2,073,070) (859,557) --
------------ ----------- ----------- ------------ ------------ ------------ -----------
Net realized gains on investments:
Institutional Class ............ (754,414) (2,299,750) (4,338,062) (6,804,684) (2,672,444) (475,914) --
Class A ........................ (60,143,772) (20,638) (21,411) (19,522) (2,645) (2,596) --
------------ ----------- ----------- ------------ ------------ ------------ -----------
Total distributions from net
realized gains ................. (60,898,186) (2,320,388) (4,359,473) (6,824,206) (2,675,089) (478,510) --
------------ ----------- ----------- ------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS :
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ............ 557,058,547 30,791,846 69,917,221 139,069,249 130,446,451 106,861,336 10,000,000
Class A ........................ (57,964,695) 189,249 383,809 436,806 141,909 586,985 126,143
------------ ----------- ----------- ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ................... 499,093,852 30,981,095 70,301,030 139,506,055 130,588,360 107,448,321 10,126,143
------------ ----------- ----------- ------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets ..................... 514,935,955 31,959,081 76,912,827 150,748,309 144,103,900 110,344,356 11,169,175
NET ASSETS:
Beginning of period .............. 61,256,077 99,050 130 200 200 200 20
------------ ----------- ----------- ------------ ------------ ------------ -----------
End of period .................... $576,192,032 $32,058,131 $76,912,957 $150,748,509 $144,104,100 $110,344,556 $11,169,195
============ =========== =========== ============ ============ ============ ===========
<FN>
- -----------
(1) For the period 02/26/96 (commencement of operations) to 12/31/96.
(2) For the period 04/09/96 (commencement of operations) to 12/31/96.
(3) For the period 04/16/96 (commencement of operations) to 12/31/96.
(4) Shares of Convertible Fund are not designated as Class A shares.
</FN>
</TABLE>
See Notes to Financial Statements.
72-73
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY
Since the Money Market Funds have sold and redeemed shares only at a constant
net asset value of $1.00 per share, the number of shares represented by such
sales and redemptions is the same as the amounts shown below for such
transactions.
<TABLE>
<CAPTION>
MONEY MARKET FUNDS
---------------------------------------------------------------------------------------------------
GOVERNMENT MONEY FUND MONEY FUND TAX-EXEMPT MONEY FUND
------------------------------ --------------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/97 12/31/96 06/30/97 12/31/96 06/30/97 12/31/96
------------- --------------- --------------- --------------- ------------- -------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Sold....................... $ 144,233,719 $ 232,771,120 $ 853,910,494 $ 993,846,629 $ 331,665,352 $ 902,032,719
Issued as reinvestment of
dividends................ 38,667 10,764 1,617,049 282,379 9,577 2,813
Redeemed................... (129,687,275) (213,978,892) (647,423,951) (723,547,454) (353,881,968) (725,785,548)
------------- --------------- --------------- --------------- ------------- -------------
Net Increase/(decrease).... $ 14,585,111 $ 18,802,992 $ 208,103,592 $ 270,581,554 $ (22,207,039) $ 176,249,984
============= =============== =============== =============== ============= =============
CLASS A :
Sold....................... $ 640,576,600 $ 1,159,556,974 $ 1,219,160,936 $ 2,226,243,194 $ 229,049,560 $ 453,682,137
Issued as reinvestment of
dividends................ 3,046,039 4,846,048 7,931,516 12,457,401 1,779,643 3,504,283
Redeemed................... (613,783,194) (1,222,756,385) (1,170,073,179) (2,201,063,687) (232,409,257) (448,911,735)
------------- --------------- --------------- --------------- ------------- -------------
Net Increase/(decrease).... $ 29,839,445 $ (58,353,363) $ 57,019,273 $ 37,636,908 $ (1,580,054) $ 8,274,685
============= =============== =============== =============== ============= =============
</TABLE>
See Notes to Financial Statements.
74
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY (CONTINUED)
FOR THE PERIOD ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
---------------------------------------------------------------------------
SHORT/ INTERMEDIATE
INTERMEDIATE BOND GOVERNMENT
FUND FUND FUND
--------------------------- -------------------------- ------------
SIX MONTHS YEAR SIX MONTHS PERIOD PERIOD
ENDED ENDED ENDED ENDED ENDED
06/30/97 12/31/96 06/30/97 12/31/96(2) 06/30/97(3)
----------- ------------ ----------- ----------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
AMOUNT
- ------
<S> <C> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Sold .................................. $27,470,360 $315,836,583 $67,263,535 $43,202,747 $100,938,583
Issued as reinvestment of dividends ... 822,272 1,181,698 667,745 102,573 1,615,876
Redeemed .............................. (9,535,413) (58,376,863) (2,332,472) (470,740) (12,062,023)
----------- ------------ ----------- ----------- ------------
Net increase/(decrease) ............... $18,757,219 $258,641,418 $65,598,808 $42,834,580 $ 90,492,436
=========== ============ =========== =========== ============
CLASS A:(4)
Sold .................................. $ 255,089 $ 11,894,136 $ 239,290 $ 222,006 $ 25,881
Issued as reinvestment of dividends ... 114,632 637,887 3,402 1,569 136
Redeemed .............................. (42,583) (58,097,974) (19,921) (92,507) --
----------- ------------ ----------- ----------- ------------
Net increase/(decrease) ............... $ 327,138 $(45,565,951) $ 222,771 $ 131,068 $ 26,017
=========== ============ =========== =========== ============
======================================================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold .................................. 2,730,934 30,880,397 6,760,166 4,319,806 6,262,859
Issued as reinvestment of dividends ... 81,648 117,417 67,017 10,179 99,911
Redeemed .............................. (946,995) (5,793,296) (233,237) (46,602) (747,593)
----------- ------------ ----------- ----------- ------------
Net increase/(decrease) ............... 1,865,587 25,204,518 6,593,946 4,283,383 5,615,177
=========== ============ =========== =========== ============
CLASS A:(4)
Sold .................................. 25,414 1,167,686 24,005 21,973 1,607
Issued as reinvestment of dividends ... 11,381 62,690 342 156 8
Redeemed .............................. (4,206) (5,787,240) (1,976) (9,202) --
----------- ------------ ----------- ----------- ------------
Net increase/(decrease) ............... 32,589 (4,556,864) 22,371 12,927 1,615
=========== ============ =========== =========== ============
</TABLE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY (CONTINUED)
FOR THE PERIOD ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
-------------------------------------------------------------
INTERMEDIATE
TAX-EXEMPT TAX-EXEMPT
FUND FUND
--------------------------- ----------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
06/30/97 12/31/96(1) 06/30/97 12/31/96(1)
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
AMOUNT
- ------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Sold .................................. $ 26,594,047 $255,651,844 $ 20,189,296 $190,808,486
Issued as reinvestment of dividends ... 19,241 8,778 19,110 21,152
Redeemed .............................. (37,927,126) (43,482,577) (16,250,133) (20,475,335)
------------ ------------ ------------ ------------
Net increase/(decrease) ............... $(11,313,838) $212,178,045 $ 3,958,273 $170,354,303
============ ============ ============ ============
CLASS A:(4)
Sold .................................. $ 159,041 $ 179,000 $ 114,325 $ 38,000
Issued as reinvestment of dividends ... 787 -- 265 776
Redeemed .............................. (12,802) (177,473) -- --
------------ ------------ ------------ ------------
Net increase/(decrease) ............... $ 147,026 $ 1,527 $ 114,590 $ 38,776
============ ============ ============ ============
======================================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold .................................. 2,514,069 23,864,232 1,974,965 18,118,214
Issued as reinvestment of dividends ... 1,829 828 1,871 2,055
Redeemed .............................. (3,597,725) (4,139,865) (1,594,429) (1,987,182)
------------ ------------ ------------ ------------
Net increase/(decrease) ............... (1,081,827) 19,725,195 382,407 16,133,087
============ ============ ============ ============
CLASS A:(4)
Sold .................................. 15,178 16,967 11,148 3,639
Issued as reinvestment of dividends ... 75 -- 26 75
Redeemed .............................. (1,216) (16,967) -- --
------------ ------------ ------------ ------------
Net increase/(decrease) ............... 14,037 0 11,174 3,714
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
----------------------------------------------
CONVERTIBLE
CONVERTIBLE SECURITIES
FUND FUND
---------------------------- -----------
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
06/30/97 12/31/96 06/30/97(3)
------------ ------------ -----------
(UNAUDITED) (UNAUDITED)
AMOUNT
- ------
<S> <C> <C> <C>
INSTITUTIONAL CLASS:
Sold .................................. -- -- $59,253,156
Issued as reinvestment of dividends ... -- -- 609,854
Redeemed .............................. -- -- (3,515,564)
------------ ------------ -----------
Net increase/(decrease) ............... -- -- $56,347,446
============ ============ ===========
CLASS A:(4)
Sold .................................. $ 3,646 $ 136,902 $ 12,097
Issued as reinvestment of dividends ... 9,762 31,632 115
Redeemed .............................. (272,436) (327,248) --
------------ ------------ -----------
Net increase/(decrease) ............... $ (259,028) $ (158,714) $ 12,212
============ ============ ===========
=======================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold .................................. -- -- 2,032,351
Issued as reinvestment of dividends ... -- -- 20,288
Redeemed .............................. -- -- (119,651)
------------ ------------ -----------
Net increase/(decrease) ............... -- -- 1,932,988
============ ============ ===========
CLASS A:(4)
Sold .................................. 311 13,417 404
Issued as reinvestment of dividends ... 842 3,160 4
Redeemed .............................. (23,430) (32,229) --
------------ ------------ -----------
Net increase/(decrease) ............... (22,277) (15,652) 408
============ ============ ===========
<FN>
- -----------
(1) For the Period 02/26/96 (commencement of operations) to 12/31/96.
(2) For the Period 04/16/96 (commencement of operations) to 12/31/96.
(3) For the Period 03/24/97 (commencement of operations) to 06/30/97.
(4) Shares of Convertible Fund are not designated as Class A shares.
</FN>
</TABLE>
See Notes to Financial Statements.
76-77
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY (CONTINUED)
FOR THE PERIOD ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
EQUITY FUNDS
-----------------------------------------------------------------------------------------
EQUITY
EQUITY INCOME GROWTH
FUND FUND FUND
----------------------------- -------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/97 12/31/96 06/30/97 12/31/96(1) 06/30/97 12/31/96(1)
------------ ------------- ----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
AMOUNT
- ------
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Sold ................................. $187,329,257 $ 629,627,359 $ 1,723,986 $33,736,818 $ 7,722,323 $72,754,630
Issued as reinvestment of dividends .. 787,889 6,744,978 8,602 137,826 3,970 186,112
Redeemed ............................. (49,839,223) (79,313,790) (2,059,521) (3,082,798) (2,538,663) (3,023,521)
------------ ------------- ----------- ----------- ----------- -----------
Net increase/(decrease) .............. $138,277,923 $ 557,058,547 $ (326,933) $30,791,846 $ 5,187,630 $69,917,221
============ ============= =========== =========== =========== ===========
CLASS A:
Sold ................................. $ 2,124,439 $ 18,931,677 $ 139,722 $ 174,475 $ 372,229 $ 363,832
Issued as reinvestment of dividends .. 38,642 4,041,336 1,839 15,196 119 21,898
Redeemed ............................. (797,700) (80,937,708) (10,000) (422) (31,157) (1,921)
------------ ------------- ----------- ----------- ----------- -----------
Net increase/(decrease) .............. $ 1,365,381 $ (57,964,695) $ 131,561 $ 189,249 $ 341,191 $ 383,809
============ ============= =========== =========== =========== ===========
===================================================================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold ................................. 11,609,453 41,238,231 115,283 2,529,504 380,020 4,258,723
Issued as reinvestment of dividends .. 45,635 430,491 567 9,907 188 9,805
Redeemed ............................. (2,969,954) (5,063,358) (137,138) (226,133) (125,720) (175,213)
------------ ------------- ----------- ----------- ----------- -----------
Net increase/(decrease) .............. 8,685,134 36,605,364 (21,288) 2,313,278 254,488 4,093,315
============ ============= =========== =========== =========== ===========
CLASS A:
Sold ................................. 127,051 1,274,610 9,207 13,218 18,338 20,199
Issued as reinvestment of dividends .. 2,312 283,639 120 1,094 6 1,154
Redeemed ............................. (48,628) (5,435,092) (664) (30) (1,585) (114)
------------ ------------- ----------- ----------- ----------- -----------
Net increase/(decrease) .............. 80,735 (3,876,843) 8,663 14,282 16,759 21,239
============ ============= =========== =========== =========== ===========
</TABLE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY (CONTINUED)
FOR THE PERIOD ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
EQUITY FUNDS
--------------------------------------------------------------------------------------
SMALL-CAP SMALL-CAP
OPPORTUNITY VALUE INDEX BALANCED
FUND FUND FUND FUND
-------------------------- ----------- --------------------------- -----------
SIX MONTHS PERIOD PERIOD SIX MONTHS PERIOD PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/97 12/31/96(1) 06/30/97(3) 06/30/97 12/31/96(1) 06/30/97(3)
----------- ------------ ----------- ------------ ------------ -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
AMOUNT
- ------
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Sold ................................. $54,729,849 $147,029,490 $56,863,170 $102,081,042 $142,845,246 $58,945,189
Issued as reinvestment of dividends .. 23,092 854,418 106,481 350,715 18,093 514,702
Redeemed ............................. (6,243,139) (8,814,659) (1,753,993) (18,300,649) (12,416,888) (2,771,345)
----------- ------------ ----------- ------------ ------------ -----------
Net increase/(decrease) .............. $48,509,802 $139,069,249 $55,215,658 $ 84,131,108 $130,446,451 $56,688,546
=========== ============ =========== ============ ============ ===========
CLASS A:
Sold ................................. $ 481,808 $ 423,415 -- $ 2,414,385 $ 140,207 $ 1,200
Issued as reinvestment of dividends .. -- 17,777 -- 3,794 3,612 11
Redeemed ............................. (172,838) (4,386) -- (1,410,677) (1,910) --
----------- ------------ ----------- ------------ ------------ -----------
Net increase/(decrease) .............. $ 308,970 $ 436,806 -- $ 1,007,502 $ 141,909 $ 1,211
=========== ============ =========== ============ ============ ===========
===============================================================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold ................................. 3,475,499 10,230,022 2,000,100 4,862,036 8,512,544 4,625,125
Issued as reinvestment of dividends .. 1,372 55,551 3,405 16,274 1,010 37,735
Redeemed ............................. (393,792) (600,090) (61,161) (885,467) (723,332) (214,281)
----------- ------------ ----------- ------------ ------------ -----------
Net increase/(decrease) .............. 3,083,079 9,685,483 1,942,344 3,992,843 7,790,222 4,448,579
=========== ============ =========== ============ ============ ===========
CLASS A:
Sold ................................. 30,211 27,633 -- 122,846 8,047 95
Issued as reinvestment of dividends .. -- 1,156 -- 178 194 1
Redeemed ............................. (11,654) 286 -- (73,119) (117) --
----------- ------------ ----------- ------------ ------------ -----------
Net increase/(decrease) .............. 18,557 28,503 -- 49,905 8,124 96
=========== ============ =========== ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
--------------------------------------------------------
INTERNATIONAL HEMISPHERE
FUND FUND
--------------------------- -------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
06/30/97 12/31/96(1) 06/30/97 12/31/96(2)
------------ ------------ ---------- -----------
(UNAUDITED) (UNAUDITED)
AMOUNT
- ------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Sold ................................. $ 86,063,938 $123,388,071 -- $10,000,000
Issued as reinvestment of dividends .. 374,238 52,160 -- --
Redeemed ............................. (17,631,324) (16,578,895) -- --
------------ ------------ ---------- -----------
Net increase/(decrease) .............. $ 68,806,852 $106,861,336 $ -- $10,000,000
============ ============ ========== ===========
CLASS A:
Sold ................................. $ 370,846 $ 583,595 $ 1,300 $ 126,143
Issued as reinvestment of dividends .. 2,200 3,390 -- --
Redeemed ............................. (104,567) -- -- --
------------ ------------ ---------- -----------
Net increase/(decrease) .............. $ 268,479 $ 586,985 $ 1,300 $ 126,143
============ ============ ========== ===========
=================================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold ................................. 5,526,104 8,037,422 -- 1,000,000
Issued as reinvestment of dividends .. 21,898 149,248 -- --
Redeemed ............................. (978,696) (1,086,874) -- --
------------ ------------ ---------- -----------
Net increase/(decrease) .............. 4,569,306 7,099,796 -- 1,000,000
============ ============ ========== ===========
CLASS A:
Sold ................................. 23,598 38,413 109 12,289
Issued as reinvestment of dividends .. 129 221 -- --
Redeemed ............................. (7,021) -- -- --
------------ ------------ ---------- -----------
Net increase/(decrease) .............. 16,706 38,634 109 12,289
============ ============ ========== ===========
<FN>
- ------------
(1) For the Period 02/26/96 (commencement of operations) to 12/31/96.
(2) For the Period 04/09/96 (commencement of operations) to 12/31/96.
(3) For the Period 03/24/97 (commencement of operations) to 06/30/97.
</FN>
</TABLE>
See Notes to Financial Statements.
78-79
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
----------------------------------------------
SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
GOVERNMENT MONEY FUND 06/30/97 12/31/96 12/31/95 12/31/94(4)
----------- -------- -------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income .......... 0.026 0.051 0.056 0.028
------- ------- ------- ------
Total from Investment
Operations ................... 0.026 0.051 0.056 0.028
------- ------- ------- ------
LESS DISTRIBUTIONS:
Net Investment Income .......... (0.026) (0.051) (0.056) (0.028)
------- ------- ------- ------
Total Distributions ............ (0.026) (0.051) (0.056) (0.028)
------- ------- ------- ------
Net Asset Value,
End of Period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======
TOTAL RETURN ................... 2.64%(3) 5.24% 5.79% 2.82%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $51,755 $37,169 $18,367 $9,617
Ratios of Expenses to
Average Net Assets(1) ........ 0.24%(2) 0.31% 0.31% 0.29%(2)
Ratio of Net Investment Income
to Average Net Assets ........ 5.27%(2) 5.12% 5.62% 4.52%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
GOVERNMENT MONEY FUND 06/30/97 12/31/96 12/31/95 12/31/94 12/31/93 12/31/92
---------- -------- -------- -------- -------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income .......... 0.025 0.049 0.054 0.037 0.026 0.033
-------- -------- -------- -------- -------- --------
Total from Investment
Operations ................... 0.025 0.049 0.054 0.037 0.026 0.033
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Net Investment Income .......... (0.025) (0.049) (0.054) (0.037) (0.026) (0.033)
-------- -------- -------- -------- -------- --------
Total Distributions ............ (0.025) (0.049) (0.054) (0.037) (0.026) (0.033)
-------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN ................... 2.50%(3) 5.00% 5.51% 3.72% 2.62% 3.42%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $235,912 $206,073 $264,426 $229,619 $263,909 $140,134
Ratios of Expenses to
Average Net Assets(1) ........ 0.53%(2) 0.54% 0.57% 0.60% 0.61% 0.66%
Ratio of Net Investment Income
to Average Net Assets ........ 4.99%(2) 4.89% 5.36% 3.62% 2.57% 3.34%
<FN>
- -----------
(1) Without the voluntary waiver of fees, the expense ratios for the six months
ended June 30, 1997, the years ended December 31, 1996, 1995, and the period
ended December 31, 1994 for the Institutional Class shares would have been
0.28% (annualized), 0.32%, 0.32%, and 0.31% (annualized), respectively, and
for the six months ended June 30, 1997 and the years ended December 31,
1996, 1995, 1994, 1993 and 1992 for the Class A shares would have been 0.63%
(annualized), 0.67%, 0.67%, 0.66%, 0.70%, and 0.70%, respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Commenced operations on May 16, 1994.
</FN>
</TABLE>
See Notes to Financial Statements.
80
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
----------------------------------------------
SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MONEY FUND 06/30/97 12/31/96 12/31/95 12/31/94(4)
----------- -------- -------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income .......... 0.027 0.052 0.057 0.039
------- ------- ------- -------
Total from Investment
Operations ................... 0.027 0.052 0.057 0.039
------- ------- ------- -------
LESS DISTRIBUTIONS:
Net Investment Income .......... (0.027) (0.052) (0.057) (0.039)
------- ------- ------- -------
Total Distributions ............ (0.027) (0.052) (0.057) (0.039)
------- ------- ------- -------
Net Asset Value,
End of Period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
TOTAL RETURN ................... 2.74%(3) 5.38% 5.86% 4.08%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $577,526 $369,417 $98,837 $31,990
Ratios of Expenses to
Average Net Assets(1) ........ 0.20%(2) 0.27% 0.29% 0.29%(2)
Ratio of Net Investment Income
to Average Net Assets ........ 5.47%(2) 5.23% 5.69% 4.79%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MONEY FUND 06/30/97 12/31/96 12/31/95 12/31/94 12/31/93 12/31/92
---------- -------- -------- -------- -------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income .......... 0.026 0.050 0.054 0.037 0.027 0.034
-------- -------- -------- -------- -------- --------
Total from Investment
Operations ................... 0.026 0.050 0.054 0.037 0.027 0.034
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Net Investment Income .......... (0.026) (0.050) (0.054) (0.037) (0.027) (0.034)
-------- -------- -------- -------- -------- --------
Total Distributions ............ (0.026) (0.050) (0.054) (0.037) (0.027) (0.034)
-------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN ................... 2.58%(3) 5.11% 5.58% 3.79% 2.69% 3.41%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $518,236 $461,213 $423,588 $530,366 $348,984 $383,280
Ratios of Expenses to
Average Net Assets(1) ........ 0.51%(2) 0.52% 0.56% 0.55% 0.57% 0.60%
Ratio of Net Investment Income
to Average Net Assets ........ 5.15%(2) 5.00% 5.42% 3.79% 2.66% 3.34%
<FN>
- ------------
(1) Without the voluntary waiver of fees, the expense ratios for the six months
ended June 30, 1997, the years ended December 31, 1996 and 1995 and the
period ended December 31, 1994 for the Institutional Class shares would have
been 0.24% (annualized), 0.28%, 0.30% and 0.30% (annualized), respectively,
and for the six months ended June 30, 1997 and the years ended December 31,
1996, 1995, 1994, 1993 and 1992 for the Class A shares would have been 0.59%
(annualized), 0.63%, 0.65%, 0.65%, 0.72% and 0.73% , respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Commenced operations on January 5, 1994.
</FN>
</TABLE>
See Notes to Financial Statements.
81
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
------------------------------------------------
SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
TAX-EXEMPT MONEY FUND 06/30/97 12/31/96 12/31/95 12/31/94(4)
----------- -------- -------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income .......... 0.016 0.031 0.035 0.025
-------- -------- -------- --------
Total from Investment
Operations ................... 0.016 0.031 0.035 0.025
-------- -------- -------- --------
LESS DISTRIBUTIONS:
Net Investment Income .......... (0.016) (0.031) (0.035) (0.025)
-------- -------- -------- --------
Total Distributions ............ (0.016) (0.031) (0.035) (0.025)
-------- -------- -------- --------
Net Asset Value,
End of Period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
TOTAL RETURN ................... 1.66%(3) 3.19% 3.60% 2.56%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $366,195 $388,404 $212,146 $237,100
Ratios of Expenses to
Average Net Assets(1) ........ 0.26%(2) 0.29% 0.29% 0.28%(2)
Ratio of Net Investment Income
to Average Net Assets ........ 3.29%(2) 3.14% 3.52% 2.99%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
TAX-EXEMPT MONEY FUND 06/30/97 12/31/96 12/31/95 12/31/94 12/31/93 12/31/92
---------- -------- -------- -------- -------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income .......... 0.015 0.029 0.033 0.023 0.020 0.025
-------- -------- -------- -------- -------- --------
Total from Investment
Operations ................... 0.015 0.029 0.033 0.023 0.020 0.025
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Net Investment Income .......... (0.015) (0.029) (0.033) (0.023) (0.020) (0.025)
-------- -------- -------- -------- -------- --------
Total Distributions ............ (0.015) (0.029) (0.033) (0.023) (0.020) (0.025)
-------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN ................... 1.51%(3) 2.94% 3.31% 2.30% 1.99% 2.54%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $177,268 $178,849 $170,570 $123,501 $168,440 $152,821
Ratios of Expenses to
Average Net Assets(1) ........ 0.54%(2) 0.53% 0.56% 0.54% 0.54% 0.62%
Ratio of Net Investment Income
to Average Net Assets ........ 3.03%(2) 2.89% 3.25% 2.20% 1.97% 2.50%
<FN>
- -----------
(1) Without the voluntary waiver of fees, the expense ratios for the six months
ended June 30, 1997, the years ended December 31, 1996 and 1995, and the
period ended December 31, 1994 for the Institutional Class shares would have
been 0.26% (annualized), 0.29%, 0.29% and 0.30% (annualized), respectively,
and for the six months ended June 30, 1997, and the years ended December 31,
1996, 1995, 1994, 1993, and 1992 for the Class A shares would have been
0.61% (annualized), 0.64%, 0.65%, 0.65%, 0.71%, and 0.73%, respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Commenced operations on January 5, 1994.
</FN>
</TABLE>
See Notes to Financial Statements.
82
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS CLASS A
-------------------------------------------------------------------------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED 02/26/96(5) ENDED ENDED ENDED ENDED ENDED ENDED
SHORT/INTERMEDIATE FUND 06/30/97 TO 12/31/96 06/30/97 12/31/96 12/31/95 12/31/94 12/31/93 12/31/92
----------- -------- ---------- -------- -------- -------- -------- ---------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period ...................... $ 10.14 $ 10.30 $ 10.14 $ 10.38 $ 9.66 $ 10.34 $ 10.22 $ 10.57
-------- -------- -------- -------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ............ 0.314 0.517 0.301 0.594 0.588 0.559 0.563 0.630
Net Realized and Unrealized
Gain/(Loss) on Investments ..... (0.030) (0.160) (0.030) (0.247) 0.720 (0.694) 0.435 (0.087)
-------- -------- -------- -------- -------- -------- -------- -------
Total from Investment Operations . 0.284 0.357 0.271 0.347 1.308 (0.135) 0.998 0.543
-------- -------- -------- -------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Net Investment Income ............ (0.314) (0.517) (0.301) (0.587) (0.588) (0.545) (0.564) (0.631)
Net Realized Gains ............... 0.000 0.000 0.000 0.000 0.000 0.000 (0.314) (0.262)
-------- -------- -------- -------- -------- -------- -------- -------
Total Distributions .............. (0.314) (0.517) (0.301) (0.587) (0.588) (0.545) (0.878) (0.893)
-------- -------- -------- -------- -------- -------- -------- -------
Net Asset Value, End of Period ... $ 10.11 $ 10.14 $ 10.11 $ 10.14 $ 10.38 $ 9.66 $ 10.34 $ 10.22
======== ======== ======== ======== ======== ======== ======== =======
TOTAL RETURN(4) .................. 2.85%(3) 3.61%(3) 2.72%(3) 3.51% 13.88% (1.29)% 9.91% 5.28%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) .. $273,713 $255,573 $ 4,749 $ 4,432 $ 51,814 $ 44,333 $ 74,057 $71,848
Ratios of Expenses to
Average Net Assets(1) .......... 0.60%(2) 0.60%(2) 0.85%(2) 0.62% 0.60% 0.60% 0.60% 0.60%
Ratio of Net Investment Income
to Average Net Assets .......... 6.29%(2) 6.06%(2) 6.04%(2) 5.59% 5.91% 5.29% 5.32% 6.07%
Portfolio Turnover Rate .......... 62.31% 186.02% 62.31% 186.02% 194.94% 140.99% 215.07% 133.78%
<FN>
- -----------
(1) Without the voluntary waiver of fees, the expense ratios for the six months
ended June 30, 1997 and the period ended December 31, 1996 for the
Institutional Class shares would have been 0.89% (annualized) and 0.90%
(annualized), respectively, and for the six months ended June 30, 1997 and
the years ended December 31, 1996, 1995, 1994, 1993, and 1992 for the Class
A shares would have been 1.14% (annualized), 0.92%, 0.96%, 0.92%, 0.94%, and
0.93%, respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Date commenced operations.
</FN>
</TABLE>
See Notes to Financial Statements.
83
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INTERMEDIATE
BOND FUND GOVERNMENT FUND
------------------------------------------------------ ------------------------------
INSTITUTIONAL INSTITUTIONAL
CLASS CLASS A CLASS CLASS A
-------------------------- -------------------------- -------------- --------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
ENDED 04/16/96(5) ENDED 04/22/96(5) 03/24/97(5) 04/16/97(5)
06/30/97 TO 12/31/96 06/30/97 TO 12/31/96 TO 06/30/97 TO 06/30/97
------------ ------------ ---------- -------------- -------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period ......................... $ 10.07 $ 10.00 $10.07 $ 9.99 $ 16.12 $16.06
-------- ------- ------ ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ............ 0.309 0.425 0.296 0.402 0.283 0.213
Net Realized and Unrealized
Gain/(Loss) on Investments ..... (0.040) 0.103 (0.040) 0.113 0.110 0.170
-------- ------- ------ ------ ------- ------
Total from Investment Operations . 0.269 0.528 0.256 0.515 0.393 0.383
-------- ------- ------ ------ ------- ------
LESS DISTRIBUTIONS:
Net Investment Income ............ (0.309) (0.425) (0.296) (0.402) (0.283) (0.213)
Net Realized Gains ............... 0.000 (0.033) 0.000 (0.033) 0.000 0.000
-------- ------- ------ ------ ------- ------
Total Distributions .............. (0.309) (0.458) (0.296) (0.435) 0.283 (0.213)
-------- ------- ------ ------ ------- ------
Net Asset Value, End of Period ... $ 10.03 $ 10.07 $10.03 $10.07 $ 16.23 $16.23
======== ======= ====== ====== ======= ======
TOTAL RETURN(3)(4) ............... 2.73% 5.40% 2.60% 5.27% 2.46% 2.39%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) .. $109,059 $43,142 $ 354 $ 130 $91,161 $ 26
-------- ------- ------ ------ ------- ------
Ratios of Expenses to
Average Net Assets(1)(2) ....... 0.60% 0.60% 0.85% 0.85% 0.50% 0.75%
Ratio of Net Investment Income
to Average Net Assets(2) ....... 6.29% 6.03% 6.04% 5.87% 6.45% 6.20%
Portfolio Turnover Rate .......... 100.12% 116.02% 100.12% 116.02% 32.89% 32.89%
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE
TAX-EXEMPT FUND
------------------------------------------------------
INSTITUTIONAL
CLASS CLASS A
-------------------------- --------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED 02/26/96(5) ENDED 03/13/96(5)
06/30/97 TO 12/31/96 06/30/97 TO 12/31/96
---------- -------------- ---------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period ......................... $ 10.58 $ 10.74 $10.58 $ 10.55
-------- -------- ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ............ 0.220 0.381 0.119 0.084
Net Realized and Unrealized
Gain/(Loss) on Investments ..... 0.000 (0.124) 0.000 0.066
-------- -------- ------ -------
Total from Investment Operations . 0.220 0.257 0.119 0.150
-------- -------- ------ -------
LESS DISTRIBUTIONS:
Net Investment Income ............ (0.220) (0.381) (0.119) (0.084)
Net Realized Gains ............... 0.000 (0.036) 0.000 (0.036)
-------- -------- ------ -------
Total Distributions .............. (0.220) (0.417) (0.119) (0.120)
-------- -------- ------ -------
Net Asset Value, End of Period ... $ 10.58 $ 10.58 $10.58 $ 10.58
======== ======== ====== =======
TOTAL RETURN(3)(4) ............... 2.11% 2.49% 1.98% 1.44%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) .. $197,210 $208,690 $ 149 --
-------- -------- ------ -------
Ratios of Expenses to
Average Net Assets(1)(2) ....... 0.80% 0.79% 1.05% 1.04%
Ratio of Net Investment Income
to Average Net Assets(2) ....... 4.22% 4.28% 3.97% 4.33%
Portfolio Turnover Rate .......... 21.85% 57.23% 21.85% 57.23%
</TABLE>
<TABLE>
<CAPTION>
TAX-EXEMPT FUND
------------------------------------------------------
INSTITUTIONAL
CLASS CLASS A
-------------------------- --------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED 02/26/96(5) ENDED 10/02/96(5)
06/30/97 TO 12/31/96 06/30/97 TO 12/31/96
----------- -------------- ---------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period ......................... $ 10.25 $ 10.56 $10.25 $10.33
-------- -------- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ............ 0.230 0.402 0.217 0.105
Net Realized and Unrealized
Gain/(Loss) on Investments ..... 0.020 (0.094) 0.020 0.136
-------- -------- ------ ------
Total from Investment Operations . 0.250 0.308 0.237 0.241
-------- -------- ------ ------
LESS DISTRIBUTIONS:
Net Investment Income ............ (0.230) (0.402) (0.217) (0.105)
Net Realized Gains ............... 0.000 (0.216) 0.000 (0.216)
-------- -------- ------ ------
Total Distributions .............. (0.230) (0.618) (0.217) (0.321)
-------- -------- ------ ------
Net Asset Value, End of Period ... $ 10.27 $ 10.25 $10.27 $10.25
======== ======== ====== ======
TOTAL RETURN(3)(4) ............... 2.48% 3.04% 2.35% 2.34%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) .. $169,537 $165,388 $ 153 $ 38
-------- -------- ------ ------
Ratios of Expenses to
Average Net Assets(1)(2) ....... 0.80% 0.80% 1.05% 1.05%
Ratio of Net Investment Income
to Average Net Assets(2) ....... 4.55% 4.60% 4.30% 4.35%
Portfolio Turnover Rate .......... 22.04% 61.60% 22.04% 61.60%
<FN>
- ------------
(1) Without the voluntary waiver of fees, the annualized expense ratios for the
six months ended June, 30, 1997 and the period ended December 31, 1996 for
the Institutional Class shares of the Bond Fund would have been 0.89% and
0.98%, respectively, and for the Class A shares of the Bond Fund would have
been 1.14% and 1.23%, respectively, and for the period ended June 30, 1997
for the Instutitional Class shares and the Class A shares of the
Intermediate Government Fund would have been .87% and 1.12%, respectively,
and for the Institutional Class shares of the Intermediate Tax-Exempt Fund
would have been 0.80% and 0.82%, respectively, and for the Class A shares of
the Intermediate Tax-Exempt Fund would have been 1.05% and 1.07%,
respectively and for the Institutional Class shares of the Tax-Exempt Fund
would have been 0.80% and 0.81%, respectively, and for the Class A shares of
the Tax-Exempt Fund would have been 1.05% and 1.06%, respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Date commenced operations.
</FN>
</TABLE>
84-85
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
CONVERTIBLE
CONVERTIBLE FUND SECURITIES FUND
-------------------------------------------------------------- ------------------------------
INSTITUTIONAL
CLASS CLASS A
-------------- --------------
SIX MONTHS YEAR YEAR YEAR YEAR YEAR FOR THE PERIOD FOR THE PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED 03/24/97(6) 03/26/97(6)
06/30/97 12/31/96 12/31/95 12/31/94 12/31/93 12/31/92 TO 06/30/97 TO 06/30/97
---------- -------- -------- -------- -------- -------- -------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period ........................ $11.00 $ 9.52 $ 8.78 $ 9.84 $ 9.16 $ 8.41 $ 29.15 $29.30
------ ------ ------ ------ ------ ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income .............. 0.266 0.445 0.621 0.669 0.538 0.487 0.348 0.290
Net Realized and Unrealized
Gain/(Loss) on Investments ....... 0.785 1.481 0.975 (1.049) 0.680 0.783 0.868 0.745
------ ------ ------ ------ ------ ------ ------- ------
Total from Investment Operations ... 1.051 1.926 1.596 (0.380) 1.218 1.270 1.216 1.035
------ ------ ------ ------ ------ ------ ------- ------
LESS DISTRIBUTIONS:
Net Investment Income .............. (0.241) (0.446) (0.856) (0.680) (0.538) (0.520) (0.316) (0.285)
------ ------ ------ ------ ------ ------ ------- ------
Total Distributions ................ (0.241) (0.446) (0.856) (0.680) (0.538) (0.520) (0.316) (0.285)
------ ------ ------ ------ ------ ------ ------- ------
Net Asset Value, End of Period ..... $11.81 $11.00 $ 9.52 $ 8.78 $ 9.84 $ 9.16 $ 30.05 $30.05
====== ====== ====== ====== ====== ====== ======= ======
TOTAL RETURN(4) .................... 9.60%(3) 20.62% 18.52% (4.01)% 13.50% 15.40% 4.17%(3) 3.53%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) .... $1,005 $1,181 $1,171 $1,416 $6,064 $7,354 $58,087 $ 12
Ratios of Expenses to
Average Net Assets(1) ............ 0.80%(2) 0.80% 0.80% 0.80% 0.80% 0.80% 0.92%(2) 1.17%(2)
Ratio of Net Investment Income
to Average Net Assets ............ 4.22%(2) 4.28% 5.68% 5.21% 5.16% 5.83% 4.27%(2) 4.02%(2)
Portfolio Turnover Rate ............ 44.62% 38.73% 35.59% 31.63% 81.04% 21.27% 21.33% 21.33%
Average Commission Rate(5) ......... $0.057 $0.059 -- -- -- -- $ 0.060 $0.060
<FN>
- ------------
(1) Without the voluntary waiver of fees, the expense ratios for the six months
ended June 30, 1997 and the years ended December 31, 1996, 1995, 1994, 1993,
and 1992 for the Convertible Fund would have been 1.82% (annualized), 1.97%,
2.58%, 1.26%, 1.20%, and 1.26% , respectively, and for the period ended June
30, 1997 for the Institutional Class shares and Class A shares of the
Convertible Securities Fund would have been 0.93% (annualized) and 1.18%
(annualized), respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Computed by dividing the total amount of commission paid by the total number
of shares purchased and sold during the period.
(6) Date commenced operations.
</FN>
</TABLE>
See Notes to Financial Statements.
86
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS CLASS A
--------------------------- ---------------------------------------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED 02/26/96(6) ENDED ENDED ENDED ENDED ENDED ENDED
06/30/97 TO 12/31/96 06/30/97 12/31/96 12/31/95 12/31/94 12/31/93 12/31/92
---------- -------------- ---------- -------- -------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
EQUITY FUND
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period ....................... $ 15.53 $ 15.30 $ 15.53 $13.99 $ 11.28 $ 12.86 $ 11.57 $ 12.08
-------- -------- ------- ------ ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ............. 0.101 0.189 0.077 0.451 0.229 0.263 0.197 0.267
Net Realized and Unrealized
Gain/(Loss) on Investments ...... 2.395 1.898 2.395 2.926 3.827 (0.514) 1.904 0.703
-------- -------- ------- ------ ------- ------- ------- -------
Total from Investment Operations .. 2.496 2.087 2.472 3.377 4.056 (0.251) 2.101 0.970
-------- -------- ------- ------ ------- ------- ------- -------
LESS DISTRIBUTIONS:
Net Investment Income ............. (0.096) (0.193) (0.072) (0.173) (0.232) (0.263) (0.204) (0.290)
Net Realized Gains ................ 0.000 (1.664) 0.000 (1.664) (1.114) (1.066) (0.607) (1.190)
-------- -------- ------- ------ ------- ------- ------- -------
Total Distributions ............... (0.096) (1.857) (0.072) (1.837) (1.346) (1.329) (0.811) (1.480)
-------- -------- ------- ------ ------- ------- ------- -------
Net Asset Value, End of Period .... $ 17.93 $ 15.53 $ 17.93 $15.53 $ 13.99 $ 11.28 $ 12.86 $ 11.57
======== ======== ======= ====== ======= ======= ======= =======
TOTAL RETURN(4) ................... 16.11%(3) 13.66%(3) 15.95%(3) 24.15% 36.26% (2.05)% 18.23% 8.19%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) ... $812,204 $568,400 $10,446 $7,792 $61,256 $38,920 $47,241 $31,809
Ratios of Expenses to
Average Net Assets(1) ........... 0.88%(2) 0.90%(2) 1.13%(2) 0.94% 0.96% 0.90% 0.93% 0.96%
Ratio of Net Investment Income
to Average Net Assets ........... 1.16%(2) 1.43%(2) 0.91%(2) 1.47% 1.75% 1.94% 1.59% 2.16%
Portfolio Turnover Rate ........... 35.58% 75.20% 35.58% 75.20% 75.93% 87.83% 57.31% 63.79%
Average Commission Rate(5) ........ $ 0.050 $ 0.056 $ 0.050 $0.056 -- -- -- --
<FN>
- -----------
(1) Without the voluntary waiver of fees, the expense ratios for the years ended
December 31, 1995, 1994, 1993 and 1992 for the Class A shares would have
been 0.97%, 0.92%, 0.96% and 0.98%, respectively.
(2) Annualized.
(3) Total returns for periods of less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Computed by dividing the total amount of commission paid by the total number
of shares purchased and sold during the period.
(6) Date commenced operations.
</FN>
</TABLE>
See Notes to Financial Statements.
87
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
EQUITY INCOME FUND
------------------------------------------------------
INSTITUTIONAL
CLASS CLASS A
-------------------------- --------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED 02/26/96(6) ENDED 04/18/96(6)
06/30/97 TO 12/31/96 06/30/97 TO 12/31/96
---------- -------------- ---------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ...... $ 13.73 $ 13.34 $13.72 $13.02
------- ------- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ..................... 0.126 0.270 0.108 0.179
Net Realized and Unrealized Gain/(Loss)
on Investments .......................... 2.284 1.387 2.287 1.732
------- ------- ------ ------
Total from Investment Operations .......... 2.410 1.657 2.395 1.911
------- ------- ------ ------
LESS DISTRIBUTIONS:
Net Investment Income ..................... (0.120) (0.269) (0.095) (0.213)
Net Realized Gains ........................ 0.000 (0.998) 0.000 (0.998)
------- ------- ------ ------
Total Distributions ....................... (0.120) (1.267) (0.095) (1.211)
------- ------- ------ ------
Net Asset Value, End of Period ............ $ 16.02 $ 13.73 $16.02 $13.72
======= ======= ====== ======
TOTAL RETURN(3)(4) ........................ 17.60% 12.46% 17.50% 14.67%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) ........... $36,713 $31,760 $ 487 $ 298
Ratios of Expenses to
Average Net Assets(1)(2) ................ 0.93% 0.93% 1.18% 1.18%
Ratio of Net Investment Income
to Average Net Assets(2) ................ 1.71% 2.36% 1.46% 2.11%
Portfolio Turnover Rate ................... 15.68% 52.77% 15.68% 52.77%
Average Commission Rate(5) ................ $ 0.060 $ 0.059 $0.060 $0.059
</TABLE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GROWTH FUND
------------------------------------------------------
INSTITUTIONAL
CLASS CLASS A
-------------------------- --------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED 02/26/96(6) ENDED 04/19/96(6)
06/30/97 TO 12/31/96 06/30/97 TO 12/31/96
---------- -------------- ---------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ...... $ 18.69 $ 17.01 $18.69 $16.49
------- ------- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ..................... 0.032 0.062 0.011 0.030
Net Realized and Unrealized Gain/(Loss)
on Investments .......................... 3.639 2.746 3.633 3.273
------- ------- ------ ------
Total from Investment Operations .......... 3.671 2.808 3.644 3.303
------- ------- ------ ------
LESS DISTRIBUTIONS:
Net Investment Income ..................... (0.031) (0.063) (0.004) (0.038)
Net Realized Gains ........................ 0.000 (1.065) 0.000 (1.065)
------- ------- ------ ------
Total Distributions ....................... (0.031) (1.128) (0.004) (1.103)
------- ------- ------ ------
Net Asset Value, End of Period ............ $ 22.33 $ 18.69 $22.33 $18.69
======= ======= ====== ======
TOTAL RETURN(3)(4) ........................ 19.66% 16.43% 19.50% 19.95%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) ........... $97,097 $76,516 $ 849 $ 397
Ratios of Expenses to
Average Net Assets(1)(2) ................ 1.10% 1.10% 1.35% 1.35%
Ratio of Net Investment Income
to Average Net Assets(2) ................ 0.32% 0.42% 0.07% 0.17%
Portfolio Turnover Rate ................... 11.87% 35.36% 11.87% 35.36%
Average Commission Rate(5) ................ $ 0.055 $ 0.058 $0.055 $0.058
</TABLE>
<TABLE>
<CAPTION>
SMALL-CAP
SMALL-CAP OPPORTUNITY FUND VALUE FUND
----------------------------------------------------- --------------
INSTITUTIONAL INSTITUTIONAL
CLASS CLASS A CLASS
-------------------------- -------------------------- --------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD FOR THE PERIOD
ENDED 02/26/96(6) ENDED 04/19/96(6) 03/24/97(6)
06/30/97 TO 12/31/96 06/30/97 TO 12/31/96 TO 06/30/97
---------- -------------- ---------- -------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ...... $ 15.52 $ 14.24 $15.51 $14.25 $ 28.29
-------- -------- ------ ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ..................... 0.040 0.057 0.003 0.032 0.070
Net Realized and Unrealized Gain/(Loss)
on Investments .......................... 1.382 1.998 1.397 1.996 3.099
-------- -------- ------ ------ -------
Total from Investment Operations .......... 1.422 2.055 1.400 2.028 3.169
-------- -------- ------ ------ -------
LESS DISTRIBUTIONS:
Net Investment Income ..................... (0.012) (0.057) 0.000 (0.050) (0.059)
Net Realized Gains ........................ 0.000 (0.718) 0.000 (0.718) 0.000
-------- -------- ------ ------ -------
Total Distributions ....................... (0.012) (0.775) 0.000 (0.768) (0.059)
-------- -------- ------ ------ -------
Net Asset Value, End of Period ............ $ 16.93 $ 15.52 $16.91 $15.51 $ 31.40
======== ======== ====== ====== =======
TOTAL RETURN(3)(4) ........................ 9.16% 14.49% 9.03% 14.29% 11.20%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) ........... $216,181 $150,306 $ 796 $ 443 $60,986
Ratios of Expenses to
Average Net Assets(1)(2) ................ 1.20% 1.20% 1.45% 1.45% 0.99%
Ratio of Net Investment Income
to Average Net Assets(2) ................ 0.25% 0.46% 0.00% 0.10% 0.95%
Portfolio Turnover Rate ................... 24.63% 46.13% 24.63% 46.13% 23.09%
Average Commission Rate(5) ................ $ 0.057 $ 0.058 $0.057 $0.058 $ 0.054
<FN>
- -----------
(1) Without the voluntary waiver of fees, the annualized expense ratios for the
six months ended June 30, 1997 and the period ended December 31, 1996 for
the Institutional Class shares of the Equity Income Fund would have been
0.94% and 0.97%, respectively, and for the Class A shares of the Equity
Income Fund would have been 1.19% and 1.19%, respectively, and for the
Institutional Class shares of the Growth Fund would have been 1.12% and
1.14%, respectively, and for the Class A shares of the Growth Fund would
have been 1.37% and 1.39%, respectively, and for the Institutional Class
shares of the Small-Cap Opportunity Fund would have been 1.20% and 1.22%,
respectively, and for the Class A shares of the Small-Cap Opportunity Fund
would have been 1.45% and 1.47%, respectively, and for the period ended June
30, 1997 for the Institutional Class shares of the Small-Cap Value Fund
would have been 1.03%.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Computed by dividing the total amount of commission paid by the total number
of shares purchased and sold during the period.
(6) Date commenced operations.
</FN>
</TABLE>
See Notes to Financial Statements.
88-89
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INDEX FUND BALANCED FUND
------------------------------------------------------ ------------------------------
INSTITUTIONAL INSTITUTIONAL
CLASS CLASS A CLASS CLASS A
-------------------------- -------------------------- -------------- --------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
ENDED 02/26/96(6) ENDED 04/19/96(6) 03/24/97(6) 04/16/97(6)
06/30/97 TO 12/31/96 06/30/97 TO 12/31/96 TO 06/30/97 TO 06/30/97
---------- -------------- ---------- -------------- -------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .... $ 18.48 $ 16.72 $18.48 $16.35 $ 12.74 $12.56
-------- --------- ------ ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ................... 0.125 0.268 0.166 0.188 0.123 0.118
Net Realized and Unrealized Gain/(Loss)
on Investments ........................ 3.615 2.104 3.547 2.511 0.844 1.024
-------- --------- ------ ------ ------- ------
Total from Investment Operations ........ 3.740 2.372 3.713 2.699 0.967 1.142
-------- --------- ------ ------ ------- ------
LESS DISTRIBUTIONS:
Net Investment Income ................... (0.120) (0.268) (0.103) (0.225) (0.117) (0.112)
Net Realized Gains ...................... 0.000 (0.344) 0.000 (0.344) 0.000 0.000
-------- --------- ------ ------ ------- ------
Total Distributions ..................... (0.120) (0.612) (0.103) (0.569) (0.117) (0.112)
-------- --------- ------ ------ ------- ------
Net Asset Value, End of Period .......... $ 22.10 $ 18.48 $22.09 $18.48 $ 13.59 $13.59
======== ========= ====== ====== ======= ======
TOTAL RETURN(3)(4) ...................... 20.28% 14.26% 20.13% 16.56% 7.58% 9.09%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) ......... $260,353 $143,954 $1,282 $ 150 $60,440 $ 1
Ratios of Expenses to
Average Net Assets(1)(2) .............. 0.45% 0.45% 0.70% 0.70% 0.88% 1.13%
Ratio of Net Investment Income
to Average Net Assets(2) .............. 1.50% 1.85% 1.25% 1.60% 3.43% 3.18%
Portfolio Turnover Rate ................. 6.19% 4.71% 6.19% 4.71% 42.67% 42.67%
Average Commission Rate(5) .............. $ 0.018 $ 0.038 $0.018 $0.038 $ 0.059 $0.059
</TABLE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INTERNATIONAL FUND
------------------------------------------------------
INSTITUTIONAL
CLASS CLASS A
-------------------------- --------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED 02/26/96(6) ENDED 03/13/96(6)
06/30/97 TO 12/31/96 06/30/97 TO 12/31/96
---------- -------------- ---------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .... $ 15.46 $ 15.04 $15.46 $14.69
-------- -------- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ................... 0.083 0.128 0.063 0.091
Net Realized and Unrealized Gain/(Loss)
on Investments ........................ 1.584 0.485 1.578 0.860
-------- -------- ------ ------
Total from Investment Operations ........ 1.667 0.613 1.641 0.951
-------- -------- ------ ------
LESS DISTRIBUTIONS:
Net Investment Income ................... (0.077) (0.125) (0.051) (0.113)
Net Realized Gains ...................... 0.000 (0.068) 0.000 (0.068)
-------- -------- ------ ------
Total Distributions ..................... (0.077) (0.193) (0.051) (0.181)
-------- -------- ------ ------
Net Asset Value, End of Period .......... $ 17.05 $ 15.46 $17.05 $15.46
======== ======== ====== ======
TOTAL RETURN(3)(4) ...................... 10.78% 4.08% 10.61% 6.48%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) ......... $198,986 $109,747 $ 944 $ 597
Ratios of Expenses to
Average Net Assets(1)(2) .............. 1.40% 1.36% 1.65% 1.61%
Ratio of Net Investment Income
to Average Net Assets(2) .............. 1.34% 0.99% 1.09% 0.35%
Portfolio Turnover Rate ................. 0.00% 6.72% 0.00% 6.72%
Average Commission Rate(5) .............. $ 0.009 $ 0.020 $0.009 $0.020
</TABLE>
<TABLE>
<CAPTION>
HEMISPHERE FUND
------------------------------------------------------
INSTITUTIONAL
CLASS CLASS A
-------------------------- ---------- --------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED 04/09/96(6) ENDED 04/11/96(6)
06/30/97 TO 12/31/96 06/30/97 TO 12/31/96
---------- -------------- ---------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .... $ 11.03 $ 10.00 $11.01 $10.00
------- ------- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ................... 0.036 0.059 0.022 0.018
Net Realized and Unrealized Gain/(Loss)
on Investments ........................ 1.884 0.971 1.878 0.992
------- ------- ------ ------
Total from Investment Operations ........ 1.920 1.030 1.900 1.010
------- ------- ------ ------
LESS DISTRIBUTIONS:
Net Investment Income ................... 0.000 0.000 0.000 0.000
Net Realized Gains ...................... 0.000 0.000 0.000 0.000
------- ------- ------ ------
Total Distributions ..................... 0.000 0.000 0.000 0.000
------- ------- ------ ------
Net Asset Value, End of Period .......... $ 12.95 $ 11.03 $12.91 $11.01
======= ======= ====== ======
TOTAL RETURN(3)(4) ...................... 17.41% 10.30% 17.26% 10.10%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) ......... $12,947 $11,034 $ 160 $ 135
Ratios of Expenses to
Average Net Assets(1)(2) .............. 1.55% 1.55% 1.80% 1.80%
Ratio of Net Investment Income
to Average Net Assets(2) .............. 0.61% 0.78% 0.36% 0.53%
Portfolio Turnover Rate ................. 26.89% 33.15% 26.89% 33.15%
Average Commission Rate(5) .............. $ 0.024 $ 0.024 $0.024 $0.024
<FN>
- -----------
(1) Without the voluntary waiver of fees, the annualized expense ratios for the
six months ended June 30, 1997 and the period ended December 31, 1996 for
the Institutional Shares of the Index Fund would have been 0.46% and 0.49%,
respectively, and for the Class A shares of the Index Fund would have been
0.71% and 0.74%, respectively, and for the Institutional Shares of the
International Fund would have been 1.40% and 1.38%, respectively, and for
the Class A shares of the International Fund would have been 1.65% and
1.63%, respectively, and for the Institutional Class shares of the
Hemisphere Fund would have been 1.74% and 1.63%, respectively, and for the
Class A shares of the Hemisphere Fund would have been 1.99% and 1.88%,
respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Computed by dividing the total amount of commission paid by the total number
of shares purchased and sold during the period.
(6) Date commenced operations.
</FN>
</TABLE>
See Notes to Financial Statements.
90-91
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1997
1. ORGANIZATION
HT Insight Funds, Inc., doing business as Harris Insight Funds (the
"Company") was incorporated in Maryland on September 16, 1987 as an open-end
diversified management investment company and currently offers seven investment
portfolios. Harris Insight Funds Trust (the "Trust") was organized as a business
trust under the laws of the Commonwealth of Massachusetts on December 6, 1995 as
an open-end diversified management investment company and is registered with
twelve investment portfolios. The portfolios of the Company and the Trust (each
a "Fund" and collectively, the "Funds") are as follows:
COMPANY:
MONEY MARKET FUNDS:
Harris Insight Government Money Market Fund ("Government Money Fund")
Harris Insight Money Market Fund ("Money Fund")
Harris Insight Tax-Exempt Money Market Fund ("Tax-Exempt Money Fund")
FIXED INCOME FUNDS:
Harris Insight Convertible Fund ("Convertible Fund")
Harris Insight Short/Intermediate Bond Fund ("Short/Intermediate Fund")
EQUITY FUNDS:
Harris Insight Equity Fund ("Equity Fund")
Harris Insight Hemisphere Free Trade Fund ("Hemisphere Fund")
TRUST:
FIXED INCOME FUNDS:
Harris Insight Convertible Securities Fund ("Convertible Securities
Fund") Harris Insight Bond Fund ("Bond Fund") Harris Insight
Intermediate Government Bond Fund ("Intermediate Government Fund")
Harris Insight Intermediate Tax-Exempt Bond Fund ("Intermediate
Tax-Exempt Fund") Harris Insight Tax-Exempt Bond Fund ("Tax-Exempt
Fund")
EQUITY FUNDS:
Harris Insight Equity Income Fund ("Equity Income Fund") Harris
Insight Growth Fund ("Growth Fund") Harris Insight Small-Cap
Opportunity Fund ("Small-Cap Fund") Harris Insight Small-Cap Value
Fund ("Small-Cap Value Fund") Harris Insight Index Fund ("Index
Fund") Harris Insight International Fund ("International Fund")
Harris Insight Balanced Fund ("Balanced Fund")
The Intermediate Government Fund, Convertible Securities Fund, Balanced
Fund and Small-Cap Value Fund commenced operations as of March 24, 1997. Each of
the Funds, except for the Convertible Fund, currently offers two classes of
shares: Class A shares and Institutional shares. Shares of each class of a Fund
represent equal pro rata interests in the Fund and are identical in all respects
except that Class A shares are subject to certain service organization/agent
fees as described in Note 5. Institutional shares are not subject to service
organization/agent fees. A thirteenth portfolio, the Harris Insight Emerging
Markets Fund, is due to commence operations in September 1997.
92
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies used by the
Funds in the preparation of the financial statements which are in accordance
with generally accepted accounting principles. The preparation of financial
statements in accordance with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
(a) SECURITY VALUATION -- The value of securities (other than bonds and
debt obligations maturing in 60 days or less) of the Funds other than Money
Market Funds is determined based on the last sales price on the principal
exchange on which the securities are traded as of the close of regular trading
on the New York Stock Exchange (which is currently 4:00 P.M., Eastern time). In
the absence of any sale on the valuation date, the securities are valued at the
closing bid price. Securities traded only on the over-the-counter markets are
valued at the closing over-the-counter bid prices. Portfolio securities which
are primarily traded on foreign securities exchanges are generally valued at the
closing values of such securities on their respective exchanges, except when an
occurrence subsequent to the time a value was so established is likely to have
changed such value. In such an event, the fair value of those securities will be
determined through the consideration of other factors by or under the direction
of the Board of Trustees and Board of Directors of the Funds. Bonds are valued
at the mean of the last bid and asked prices. In the event that such prices are
not readily available, securities are valued at fair value as determined in good
faith by the Board of Trustees or Board of Directors, as the case may be. Prices
used for valuations of securities are provided by independent pricing services
and brokers. Debt obligations with remaining maturities of 60 days or less are
valued at amortized cost.
Each of the Money Market Funds values its investments using the amortized
cost method, which involves initially valuing investments at cost and thereafter
assuming a constant amortization to maturity of any premium or discount. This
method approximates market value.
(b) FOREIGN CURRENCY TRANSLATION -- The books and records of the
International Fund and the Hemisphere Fund are maintained in U.S. dollars.
Foreign currency amounts are translated into U.S. dollars on the following
basis:
(i) market value of investment securities, other assets and
liabilities at the current rate of exchange on the valuation date; and
(ii) purchases and sales of investment securities, income and expenses
at the rates of exchange prevailing on the respective dates of such
transactions.
The International Fund and the Hemisphere Fund do not isolate that portion
of gains and losses on investments in securities which is due to changes in the
foreign exchange rates from that which is due to changes in the market prices of
such securities. The International Fund and the Hemisphere Fund report gains and
losses on foreign currency related transactions as realized and unrealized gains
and losses for financial reporting purposes, whereas such gains and losses, to
the extent realized, are treated as ordinary income or loss for federal income
tax purposes.
(c) FEDERAL INCOME TAXES -- Each Fund intends to continue to qualify as a
regulated investment company under the Internal Revenue Code and to distribute
substantially all of its net investment income and net realized capital gains to
shareholders. Accordingly, no provision for federal income tax is required.
93
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
(d) DISTRIBUTIONS -- Each of the Funds declares dividends from net
investment income. The Money Market Funds and the Fixed Income Funds (other than
the Convertible Fund and Convertible Securities Fund) declare dividends each
business day to shareholders of record that day for payment on the first
business day of the following month. Dividends from the Convertible Fund,
Convertible Securities Fund and Equity Funds (other than the Small-Cap Fund,
Small-Cap Value Fund, International Fund and Hemisphere Fund) are declared and
paid quarterly. Dividends from the Small-Cap Fund, Small-Cap Value Fund and the
International Fund are declared and paid semi-annually. Dividends from the
Hemisphere Fund are declared and paid annually. Each Fund's net realized capital
gains, if any, are distributed at least annually. Distributions to shareholders
are recorded on the ex-dividend dates.
The amounts of distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax regulations,
which may differ from those amounts determined under generally accepted
accounting principles. These book/tax differences are either temporary or
permanent in nature. To the extent these differences are permanent, they are
reclassified within the capital accounts to conform to their tax treatment in
the period that the differences arise.
(e) FUTURES CONTRACTS -- The Funds may seek to hedge all or a portion of
their investments through the use of securities index and financial futures
contracts. Upon entering into a futures contract, a Fund is required to deposit
an amount ("initial margin") equal to a certain percentage of the contract
value. Subsequent payments ("variation margin") are made or received by the Fund
each day, reflecting the daily change in the value of the contract and are
recorded as unrealized gains or losses. When the contract is closed, the Fund
will recognize a realized gain or loss.
Futures contracts are subject to the risk associated with the imperfect
correlation between movements in the price of the future contract and the price
of the securities being hedged. The risk of imperfect correlation increases with
respect to securities index futures as the composition of the Fund's portfolio
diverges from composition of the index underlying such index futures. In
addition, there is no assurance that a liquid secondary market will exist at the
time the Fund elects to close out a futures position.
(f) ORGANIZATION EXPENSES -- Each Fund's share of the costs incurred in
connection with the organization of the Company or the Trust have been deferred
and are being amortized over 60 months from commencement of operations of the
Fund.
(g) ALLOCATION OF EXPENSES -- Expenses which have not been directly charged
to a specific Fund are generally allocated among the Funds primarily on the
basis of relative net assets. Expenses relating to a particular class of shares
of a Fund are charged to that class. Non-class specific expenses are allocated
between the classes of shares of a Fund based upon the relative net assets of
the respective classes.
(h) DOLLAR ROLLS -- Each Fund may enter into mortgage dollar rolls in which
the Fund sells mortgage securities for delivery in the current month, realizing
a gain or loss, and simultaneously contracts to repurchase somewhat similar
(same type, coupon and maturity) securities on a specified future date. During
the roll period the Fund forgoes principal and interest paid on the securities.
The Fund is compensated by the interest earned on the cash proceeds of the
initial sale and by the lower repurchase price at the future date.
(i) OTHER -- Investment transactions are recorded on trade date. Interest
income, including the amortization of discount or premium, is recorded as
earned. Discounts and premiums on securities purchased are amortized over the
lives of the respective securities. Dividend income is recorded on the
ex-dividend date.
94
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
3. REPURCHASE AGREEMENTS
Certain Funds invest in repurchase agreements. Securities pledged as
collateral for repurchase agreements are held by the custodian bank until
maturity of the repurchase agreements. Provisions of the repurchase agreements
and procedures adopted by the Funds require that the market value of the
collateral, including accrued interest thereon, is sufficient in the event of
default by the counterparty. If the counterparty defaults and the value of the
collateral declines or if the counterparty enters an insolvency proceeding,
realization of the collateral by the Funds may be delayed or limited.
4. ADVISORY, ADMINISTRATION AND DISTRIBUTION ARRANGEMENTS
The Company and the Trust retain Harris Trust and Savings Bank ("Harris
Trust") as investment adviser (the "Adviser"), pursuant to advisory contracts
for each Fund. As Adviser, Harris Trust is entitled to receive fees payable
monthly, based upon the average daily net asset value of each Fund, at the
following annual rates:
Each Money Market Fund 0.14% of the first $100 million of
net assets and 0.10% of net
assets over $100 million
Short/Intermediate Fund 0.70%
Bond Fund 0.65%
Intermediate Government Fund 0.65%
Intermediate Tax-Exempt Fund 0.60%
Tax-Exempt Fund 0.60%
Convertible Fund 0.70%
Convertible Securities Fund 0.70%
Equity Fund 0.70%
Equity Income Fund 0.70%
Growth Fund 0.90%
Small-Cap Fund 1.00%
Small-Cap Value Fund 0.80%
Index Fund 0.25%
Balanced Fund 0.60%
International Fund 1.05%
Hemisphere Fund 0.90%
95
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
Harris Trust may at its discretion, voluntarily waive all or any portion of
its respective advisory fees for any Fund. For the period ended June 30, 1997,
advisory fees and waivers for certain Funds were as follows:
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
------------ -------- ------------
Short/Intermediate Fund ........ $931,568 $381,512 $550,056
Bond Fund ...................... 210,295 92,600 117,695
Intermediate Government Fund ... 163,062 92,114 70,948
Intermediate Tax-Exempt Fund ... 596,807 482 596,325
Tax-Exempt Fund ................ 501,339 564 500,775
Convertible Fund ............... 4,077 4,077 --
Convertible Securities Fund .... 109,976 1,931 108,045
Equity Income Fund ............. 120,034 2,542 117,492
Growth Fund .................... 383,098 7,775 375,323
Small-Cap Fund ................. 885,194 2,214 882,980
Small-Cap Value Fund ........... 115,127 6,139 108,988
Index Fund ..................... 215,983 12,752 203,231
International Fund ............. 767,884 157 767,727
Hemisphere Fund ................ 53,483 11,008 42,475
There were no advisory fee waivers for other than the above Funds.
For the period ended June 30, 1997, Harris Trust also reimbursed expenses
of $1,841 for the Convertible Fund.
Harris Trust has entered into Portfolio Management Agreements with Harris
Investment Management, Inc. ("HIM") under which HIM undertakes to furnish
investment guidance and policy direction in connection with the daily portfolio
management of the Funds, other than the Tax-Exempt Money Fund. HIM, as portfolio
manager, receives a fee directly from Harris Trust, not from the Funds. HIM is a
subsidiary of Harris Trust.
Jones Heward Investment Counsel Inc. ("JHICI") and Bancomer Asesora de
Fondos, S.A. de C.V. ("Bancomer") have each entered into Investment Sub-Advisory
Agreements with HIM with respect to the Hemisphere Fund. Pursuant to these
agreements JHICI selects and manages the Canadian securities and Bancomer
selects and manages the Mexican securities in which the Hemisphere Fund invests.
Hansberger Global Investors, Inc. ("Hansberger")entered into an Investment
Sub-Advisory Agreement with HIM with respect to the International Fund which was
approved by the shareholders of the International Fund on August 6, 1997.
Pursuant to the agreement Hansberger will select and manage the securities in
which the InternationalFund invests. Payments made to JHICI, Bancomer and
Hansberger for these services are made by HIM, and are not separate expenses of
the Hemisphere Fund or the International Fund.
The Company and the Trust have an Administration Agreement with Harris
Trust (the "Administrator"). In its capacity as the Administrator, Harris Trust
generally assists the Funds in all aspects of their administration and
operation. The Administrator has entered into a Sub-Administration Agreement
with Funds Distributor, Inc. ("Funds Distributor" or the "Sub-Administrator"),
pursuant to which the Sub-Administrator performs certain administrative services
for the Funds. The Administrator has also entered into a Sub-Administration and
Accounting Services Agreement with PFPC, Inc. (the "Sub-Administrator and
Accounting Services Agent"). Under these Agreements, the Administrator
compensates the Sub-Administrator and the Sub-Administrator and the Accounting
Services Agent for providing such services. Harris Trust also serves as the
transfer and dividend disbursing agent of the Funds (the "Transfer Agent").
96
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
Harris Trust has also entered into a Sub-Transfer Agency Services Agreement with
PFPC, Inc. (the "Sub-Transfer Agent"), pursuant to which the Sub-Transfer Agent
performs certain transfer agency and dividend disbursing agency services. Harris
Trust compensates the Sub-Transfer Agent for providing such services. PNC Bank,
N.A. serves as the Custodian of the assets of the Funds. As compensation for
their services, Harris Trust, in its capacity as the Administrator and Transfer
Agent, and the Custodian are entitled to receive a combined fee based on the
aggregate average daily net assets of the Funds, payable monthly at an annual
rate of 0.17% of the first $300 million of average daily net assets; 0.15% of
the next $300 million; and 0.13% of the average net assets in excess of $600
million.
Funds Distributor provides services as distributor (the "Distributor") in
connection with sales of shares of the Funds. For the period ended June 30,
1997, fees for services rendered by the Distributor were paid by the
Administrator. For the period ended June 30, 1997, Funds Distributor advised the
Funds that aggregate sales charges paid with respect to Class A shares of
certain Funds were approximately $6,284, of which it had retained approximately
$333 and reallowed approximately $5,951 to dealer firms. Sales charges retained
and reallowed are as follows:
RETAINED REALLOWED
-------- ---------
Equity Fund ...................... $206 $3,700
Growth Fund ...................... -- --
Small-Cap Fund ................... 58 1,020
Small-Cap Value Fund ............. -- --
Index Fund ....................... 13 211
Balanced Fund .................... -- --
International Fund ............... 56 1,020
Short/Intermediate Fund .......... -- --
Intermediate Government Fund ..... -- --
Convertible Securities Fund ...... -- --
The Company has a compensation arrangement under which payment of
directors' fees may be deferred by the Director. Interest is accrued on the
deferred balances and is included in directors' fees and expenses. The
accumulated balance of deferred directors' fees and interest thereon relating to
the Funds comprising the Company, excluding the Hemisphere Fund, on June 30,
1997 aggregated approximately $193,400, an applicable portion of which is
included in accrued expenses of each applicable Fund.
Certain employees of PFPC, Inc. and Funds Distributor are officers of the
Funds. During the period ended June 30, 1997, PFPC, Inc. and Funds Distributor
received in aggregate fees and expenses of $1,597,129 and $1,343,539,
respectively, from the Administrator for services rendered under various
agreements described above. For the period ended June 30, 1997, Funds
Distributor voluntarily waived fees of $46,448 for the Government Money Fund and
$172,451 for the Money Fund.
5. RULE 12B-1 OR SERVICE PLANS
The Company and the Trust have adopted Service Plans pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended (the "Plan"), for the Funds
other than with respect to Institutional shares of the Funds.
97
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
Under the Plan for the Money Market Funds, each Money Market Fund may enter
into service agreements with banks and other institutions (each a "Service
Organization"). A Service Organization may receive fees with respect to a Money
Market Fund's shares to provide certain shareholder support services and
distribution assistance to holders of Class A shares in consideration of the
Fund's payment of up to 0.35% per annum of the average daily net asset value of
the Class A shares held by or for the benefit of customers of the Service
Organization. Service Organization fees paid to Harris Trust for the period
ended June 30, 1997, were $335,693, $743,460 and $257,714 (net of voluntary
waivers of $74,727, $110,990 and $57,854) for the Class A shares of the
Government Money Fund, Money Fund and Tax-Exempt Money Fund, respectively.
Under each of the Non-Money Market Fund Plans, each Non-Money Market Fund
may enter into service agreements with banks and other institutions
(individually, "Service Agent"). A Service Agent may receive fees with respect
to a Non-Money Market Fund's Class A shares owned by shareholders for whom the
Service Agent is the dealer or holder of record, or with whom the Service Agent
has a servicing relationship. Harris Trust and Funds Distributor may act as
Service Agents and receive fees. Fees to a Service Agent may be up to a rate of
0.25% per annum of the average daily net asset value of Class A shares. In
addition to the fees paid by Class A shares of the Non-Money Market Funds, a
Non-Money Market Fund may, pursuant to the Service Plan, defray all or part of
the cost of preparing, printing and delivering promotional materials,
prospectuses and statements of additional information to prospective
shareholders of Class A shares of the Funds by paying on an annual basis up to
the greater of $100,000 or 0.05% of a Fund's average daily net assets (but not
in any case greater than such costs). For the period ended June 30, 1997,
Service Agent fees for the Non-Money Market Funds including fees paid to Harris
Trust and Funds Distributor were as follows:
Short/Intermediate Fund $ 5,614
Bond Fund 292
Intermediate Government Fund 4
Intermediate Tax-Exempt Fund 53
Tax-Exempt Fund 66
Convertible Securities Fund 2
Equity Fund 11,065
Equity Income Fund 462
Growth Fund 767
Small-Cap Fund 769
Small-Cap Value Fund --
Index Fund 1,032
Balanced Fund --
International Fund 830
Hemisphere Fund 181
6. PUBLIC OFFERING PRICE
Class A shares of the Non-Money Market Funds and shares of the Convertible
Fund may be sold at a public offering price which is equal to the current net
asset value of such shares with a maximum sales load of 4.5%. There is no sales
load on Class A shares of Money Market Funds or on the Institutional shares of
the Funds.
98
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
7. INVESTMENT TRANSACTIONS
The cost of investments at June 30, 1997 and the net realized gains and
losses on securities sold for the period then ended for each of the Funds for
federal income tax purposes was not materially different from the amounts
reported for financial reporting purposes.
Purchases and sales of investment securities of the Non-Money Market Funds
(excluding short-term investments and U.S. government securities) during the
period ended June 30, 1997 were as follows:
PURCHASES SALES
------------ ------------
Short/Intermediate Fund ........ $112,385,675 $ 76,291,171
Bond Fund ...................... 46,724,659 15,448,081
Intermediate Government Fund ... -- --
Intermediate Tax-Exempt Fund ... 42,215,144 51,397,604
Tax-Exempt Fund ................ 41,393,736 35,626,306
Convertible Fund ............... 460,248 616,862
Convertible Securities Fund .... 10,095,007 25,910,101
Equity Fund .................... 386,111,266 238,795,046
Equity Income Fund ............. 5,254,451 5,481,739
Growth Fund .................... 14,532,098 9,967,880
Small-Cap Fund ................. 69,187,029 40,117,609
Small-Cap Value Fund ........... 15,721,065 11,812,955
Index Fund ..................... 94,721,895 10,702,044
Balanced Fund .................. 38,226,445 23,974,096
International Fund ............. -- 3,005,423
Hemisphere Fund ................ 3,082,130 3,322,267
Purchases and sales of U.S. government securities, excluding short-term
securities, of the Non-Money Market Funds during the period ended June 30, 1997
were as follows:
PURCHASES SALES
----------- -----------
Short/Intermediate Fund ........ $55,902,057 $82,756,810
Bond Fund ...................... 64,824,397 45,241,902
Intermediate Government Fund ... 51,822,412 30,085,317
99
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
At June 30, 1997, gross unrealized appreciation (depreciation) for each
Fund was as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------- ------------- --------------
<S> <C> <C> <C>
Short/Intermediate Fund .......... $ 2,045,411 $ (953,739) $ 1,091,672
Bond Fund ........................ 811,076 (227,095) 583,981
Intermediate Government Fund ..... 836,647 (293,425) 543,222
Intermediate Tax-Exempt Fund ..... 3,961,379 (389,925) 3,571,454
Tax-Exempt Bond Fund ............. 5,305,982 (122,230) 5,183,752
Convertible Fund ................. 118,967 (18,458) 100,509
Convertible Securities Fund ...... 9,784,911 (759,868) 9,025,043
Equity Fund ...................... 196,055,283 (7,667,216) 188,388,067
Equity Income Fund ............... 11,551,602 (126,907) 11,424,695
Growth Fund ...................... 37,963,951 (518,050) 37,445,901
Small-Cap Fund ................... 58,347,495 (4,647,201) 53,700,294
Small-Cap Value Fund ............. 16,318,934 (1,214,507) 15,104,427
Index Fund ....................... 84,845,358 (1,772,470) 83,072,888
Balanced Fund .................... 3,257,719 (690,327) 2,567,392
International Fund ............... 41,690,960 (11,747,802) 29,943,158
Hemisphere Fund .................. 2,796,460 (153,449) 2,643,011
</TABLE>
At December 31, 1996, the Convertible Fund, Short/Intermediate Fund and
Hemisphere Fund had available capital loss carryforwards of approximately
$2,620,000, $3,052,000, and $126,000 respectively, that may be used to offset
future net capital gains through 1999, 2004, and 2004 respectively. Net capital
losses utilized by the Convertible Fund during the year ending December 31, 1996
were approximately $74,470.
8. IN-KIND TRANSFER OF SECURITIES
On March 24, 1997, the following Funds issued shares of beneficial interest
in tax-free exchanges for portfolio securities at their current value from
collective investment funds managed by Harris Trust. The tax basis of the
securities exchanged for the shares of the Funds was carried over to the
respective Funds. The number of shares issued, the current value on the date of
transfer and the unrealized gain (loss) on securities included in the transfer
are as follows:
<TABLE>
<CAPTION>
NUMBER UNREALIZED
OF SHARES APPRECIATION
ISSUED VALUE (DEPRECIATION)
--------- ----------- --------------
<S> <C> <C> <C>
Convertible Securities Fund ...... 2,004,512 $58,436,583 $ 9,464,569
Intermediate Government Fund ..... 5,972,896 96,258,619 (514,251)
Small-Cap Value Fund ............. 1,724,299 48,777,614 11,378,598
Balanced Fund .................... 4,447,715 56,647,149 (1,529,239)
International Fund ............... 4,158,157 62,039,734 2,638,944
</TABLE>
100
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
9. NET ASSETS
At June 30, 1997, net assets of each Fund consisted of:
<TABLE>
<CAPTION>
GOVERNMENT TAX-EXEMPT
MONEY FUND MONEY FUND MONEY FUND
------------ -------------- ------------
<S> <C> <C> <C>
Capital Stock at Par Value .......................... $ 287,667 $ 1,095,756 $ 543,460
Paid-in Capital ..................................... 287,379,297 1,094,665,335 542,920,017
Undistributed Net Investment Income ................. (72) 704 (804)
Accumulated Net Realized Gain (Loss) ................ -- -- --
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ................ -- -- --
------------ -------------- ------------
Net Assets .......................................... $287,666,892 $1,095,761,795 $543,462,673
============ ============== ============
</TABLE>
<TABLE>
<CAPTION>
SHORT/ INTERMEDIATE INTERMEDIATE
INTERMEDIATE GOVERNMENT TAX-EXEMPT
FUND BOND FUND FUND FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value ........................................ $ 27,530 $ 11,334 $ 5,617 $ 18,657
Paid-in Capital ..................................... 281,160,304 108,775,933 91,027,127 193,930,427
Undistributed Net Investment Income ................. -- 1,442 -- --
Accumulated Net Realized Gain (Loss) ................ (3,816,807) 40,371 (389,206) (161,672)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ................ 1,091,672 583,981 543,222 3,571,454
------------ ------------ ------------ ------------
Net Assets .......................................... $278,462,699 $109,413,061 $91,186,760 $197,358,866
============ ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
CONVERTIBLE
TAX-EXEMPT CONVERTIBLE SECURITIES EQUITY
FUND FUND FUND FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value ........................................ $ 16,529 $ 85 $ 1,933 $ 45,873
Paid-in Capital ..................................... 163,811,106 3,360,650 46,893,196 556,115,357
Undistributed Net Investment Income ................. -- 2,048 61,312 (108,088)
Accumulated Net Realized Gain (Loss) ................ 678,545 (2,457,880) 2,117,207 78,209,107
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ................ 5,183,752 100,509 9,025,043 188,388,067
------------ ---------- ----------- ------------
Net Assets .......................................... $169,689,932 $1,005,412 $58,098,691 $822,650,316
============ ========== =========== ============
</TABLE>
101
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
EQUITY SMALL-CAP
INCOME GROWTH SMALL-CAP VALUE
FUND FUND FUND FUND
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value........................................ $ 2,322 $ 4,386 $ 12,817 $ 1,942
Paid-in Capital..................................... 23,859,006 54,976,836 148,758,829 43,835,158
Undistributed Net Investment Income................. 15,196 (71) 65,744 22,196
Accumulated Net Realized Gain (Loss)................ 1,898,548 5,519,186 14,439,566 2,022,489
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions................ 11,424,695 37,445,901 53,700,294 15,104,427
----------- ----------- ------------ -----------
Net Assets.......................................... $37,199,767 $97,946,238 $216,977,250 $60,986,212
=========== =========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
INDEX BALANCED INTERNATIONAL HEMISPHERE
FUND FUND FUND FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value........................................ $ 11,841 $ 4,449 $ 11,725 $ 1,012
Paid-in Capital..................................... 171,185,601 58,214,587 169,340,915 10,120,688
Undistributed Net Investment Income................. 55,529 25,812 75,319 4,297
Accumulated Net Realized Gain (Loss)................ 7,309,526 (371,331) 558,856 338,064
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions................ 83,072,888 2,567,392 29,943,158 2,643,011
------------ ----------- ------------ -----------
Net Assets.......................................... $261,635,385 $60,440,909 $199,929,973 $13,107,072
============ =========== ============ ===========
</TABLE>
10. CONCENTRATION OF RISKS
The Tax-Exempt Money Fund, Intermediate Tax-Exempt Fund and Tax-Exempt Bond
Fund invest primarily in a diversified portfolio of municipal securities,
including municipal bonds and debentures. The Fixed Income Funds and the Money
Market Funds invest in debt instruments. The issuers' abilities to meet their
obligations may be affected by political and economic developments in a specific
state or region or their respective industries.
The International Fund and Hemisphere Fund invest in securities of foreign
issuers in various countries. These investments may involve certain
considerations and risks not typically associated with investments in the U.S.
as a result of, among other factors, the possibility of future political and
economic developments and the level of governmental supervision and regulation
of securities markets in the respective countries.
102
<PAGE>
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<PAGE>
HARRIS INSIGHT(REGISTRATION MARK) FUNDS
60 STATE STREET, SUITE 1300
BOSTON, MASSACHUSETTS 02109
TELEPHONE: (800) 982-8782
INVESTMENT ADVISER, ADMINISTRATOR,
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
Harris Trust and Savings Bank
111 West Monroe Street
Chicago, Illinois 60603
PORTFOLIO MANAGEMENT AGENT
Harris Investment Management, Inc.
190 South LaSalle Street
Chicago, Illinois 60603
SUB-ADMINISTRATOR AND ACCOUNTING
SERVICES AGENT, SUB-TRANSFER AGENT
AND DIVIDEND DISBURSING AGENT
PFPC Inc.
103 Bellevue Parkway
Wilmington, Delaware 19809
SUB-ADMINISTRATOR AND DISTRIBUTOR
Funds Distributor Inc.
60 State Street, Suite 1300
Boston, Massachusetts 02109
CUSTODIAN
PNC Bank, N.A.
Broad & Chestnut Streets
Philadelphia, Pennsylvania 19101
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
30 South 17th Street
Philadelphia, Pennsylvania 19103
LEGAL COUNSEL
Bell, Boyd & Lloyd
Three First National Plaza
70 West Madison Street
Chicago, Illinois 60602-4207
BOARD OF DIRECTORS AND BOARD OF TRUSTEES
C. GARY GERST
Chairman of the Board of Directors and Board of Trustees; Chairman Emeritus,
LaSalle Partners, Ltd. (real estate developer and manager).
EDGAR R. FIEDLER
Senior Fellow and Economic Counsellor, The Conference Board.
JOHN W. MCCARTER, JR.
President and Chief Executive Officer, The Field Museum of Natural History
(Chicago); Senior Vice President and former Director, Booz-Allen & Hamilton,
Inc. (consulting firm); Director of W.W. Grainger, Inc. and A.M. Castle, Inc.
ERNEST M. ROTH
Consultant; Retired Senior Vice President and Chief Financial Officer,
Commonwealth Edison Company.
OFFICERS
RICHARD W. INGRAM
President, Treasurer and
Chief Financial Officer
JOHN E. PELLETIER
Vice President and Secretary
CHRISTOPHER J. KELLEY
Vice President and
Assistant Secretary
MARY A. NELSON
Assistant Treasurer
THOMAS J. RYAN
Assistant Treasurer
ELIZABETH A. KEELEY
Assistant Secretary
JOSEPH T. GRAMLICH
Assistant Secretary
KAREN JACOPPO-WOOD
Assistant Secretary
ANDREA M. PASSARELLA
Assistant Secretary
SHARON A. VANDIVER
Assistant Secretary
<PAGE>
This report is submitted for the general information of the shareholders of the
Harris Insight Funds. It is not authorized for distribution to prospective
investors unless accompanied or preceded by a prospectus of the Harris Insight
Funds. Please read the prospectus carefully before you invest or send money.
DISTRIBUTOR:
Funds Distributor Inc.
HSA0697
