HARRIS
INSIGHT(REGISTRATION MARK) FUNDS
SEMI-ANNUAL REPORT
JUNE 30, 1998
HARRIS
INSIGHT(REGISTRATION MARK) FUNDS
(LOGO GRAPHIC OMITTED)
POWERFUL INSIGHT. SOLID INVESTMENTS.(REGISTRATION MARK)
<PAGE>
---------------------------------------------------------
| NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE |
---------------------------------------------------------
<PAGE>
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER:
We are pleased to report to you results for the Harris Insight Funds for the
six-month period ended June 30, 1998.
Within this Semi-annual Report you will find Harris Investment Management's
review of the fixed income and equity markets during the first half of the year,
as well as their outlook for the markets and the economy for the balance of
1998.
HARRIS INSIGHT FUNDS PERFORM
A number of the Harris Insight Funds posted solid performance results for the
first six months of 1998, in continuation of the excellent performance turned in
by these Funds during 1997.
For the year ended June 30, 1998, Lipper Analytical Services, Inc., a
well-regarded independent research firm that compiles performance data on mutual
funds, ranked the Harris Insight Equity Income Fund within the top four percent
of equity income funds based on total return. The Retail (Class A) shares ranked
10th out of 204 funds and the Institutional shares ranked 8th out of 204 funds.
It should be noted that past performance is not a guarantee of future results.
In addition, certain Funds received recognition for their performance during the
first half of the year from national publications including THE WALL STREET
JOURNAL (for example on Wednesday, April 22). (FOR MORE DETAILED PERFORMANCE
INFORMATION ON THE FUNDS, PLEASE CALL 1-800-982-8782.)
Harris Investment Management, Inc., the Funds' portfolio management agent,
utilizes a disciplined investment process to identify the most attractive
securities for each Harris Insight Fund. We believe this disciplined approach
helps set the Harris Insight Funds apart, especially within the current equity
market environment, where higher valuations may make it increasingly difficult
to find the best buying opportunities for certain Funds.
NEW PROGRAM AVAILABLE TO SHAREHOLDERS
We are very excited to announce a new program available to Harris Insight Funds'
shareholders.
In June of this year, the Harris Insight Funds joined with Sage Scholars, Inc.,
a Philadelphia-based educational consulting firm, to offer a unique program
exclusively for Harris Insight Funds shareholders. This program enables Fund
shareholders to help their families meet the rising costs of college education
by earning tuition reduction rewards at over 100 participating private colleges
and universities. The program is open
1
<PAGE>
LETTER TO SHAREHOLDERS
(CONTINUED)
to all shareholders and can be utilized for any child, from birth through one
year prior to college admission. The balances in designated Harris Insight
Funds' accounts determine the amount of tuition reduction, and students can
receive up to one year of tuition free or a tuition reduction of $13,800 over
four years (whichever is less). For more information about the program, we
encourage you to call 1-800-982-8782.
As always, we welcome your comments and suggestions as to how we can best serve
your needs now and in the future. We appreciate the confidence you have placed
in the Harris Insight Funds and thank you for investing with us.
Sincerely,
/s/ GEORGE A. RIO
GEORGE A. RIO
PRESIDENT, TREASURER AND CHIEF FINANCIAL OFFICER
THE HARRIS INSIGHT FAMILY OF MUTUAL FUNDS
INVESTMENT ADVISER: HARRIS TRUST AND SAVINGS BANK
PORTFOLIO MANAGEMENT AGENT: HARRIS INVESTMENT MANAGEMENT, INC.
DISTRIBUTOR: FUNDS DISTRIBUTOR, INC.
2
<PAGE>
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS PAGE 1
THE MARKET ENVIRONMENT
Economic Review PAGE 4
Fixed Income Markets Review PAGE 6
Equity Markets Review PAGE 7
STATEMENT OF NET ASSETS
MONEY MARKET FUNDS:
Government Money Market Fund PAGE 8
Money Market Fund PAGE 9-10
Tax-Exempt Money Market Fund PAGE 11-16
FIXED INCOME FUNDS:
Short/Intermediate Bond Fund PAGE 17-20
Bond Fund PAGE 21-24
Intermediate Government Bond Fund PAGE 25-26
Intermediate Tax-Exempt Bond Fund PAGE 27-29
Tax-Exempt Bond Fund PAGE 30-32
Convertible Securities Fund PAGE 33-35
EQUITY FUNDS
Equity Fund PAGE 36-37
Equity Income Fund PAGE 38-39
Growth Fund PAGE 40-41
Small-Cap Opportunity Fund PAGE 42-45
Small-Cap Value Fund PAGE 46-47
Index Fund PAGE 48-53
Balanced Fund PAGE 54-58
International Fund PAGE 59-61
Emerging Markets Fund PAGE 62-63
STATEMENTS OF OPERATIONS PAGE 64-65
STATEMENTS OF CHANGES IN NET ASSETS PAGE 66-69
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY PAGE 70-75
FINANCIAL HIGHLIGHTS PAGE 76-83
NOTES TO FINANCIAL STATEMENTS PAGE 84-93
<PAGE>
THE MARKET ENVIRONMENT
ECONOMIC REVIEW
JUNE 30, 1998
At mid-year, the world economy is faced with widely differing economic
conditions. Asia is in various stages of recession/depression and Eastern Europe
and Latin America are slowing rapidly. At the same time, Western Europe and the
U.S. appear to be on sound footing.
STEADY U.S. ECONOMIC GROWTH SHOULD CONTINUE
U. S. growth, while likely to slow from its recent pace, is still likely to
maintain a 2% rate of expansion during the second half of 1998. The reasons for
this forecast include continuing problems in Asia coupled with a slowdown in
capital spending growth. However, countering these negative effects is an almost
perfect consumer environment. Lower interest rates have permitted homeowners to
refinance their mortgages, "real" incomes are rising and lower energy prices are
boosting discretionary income. Therefore, in the foreseeable future, any slowing
in U.S. growth is expected to be modest.
ASIAN PROBLEMS A BRAKE ON U.S. AND EUROPE ECONOMIES
Asia's problems can be expected to continue for some time, as both Japan and the
Southeast Asian countries struggle to revive their economies. At this time,
President Clinton has just completed his trip to China following his
administration's attempt to offer constructive advice to Japan regarding how to
stimulate its economy. In the wake of the recent election losses of Japan's
majority party (the LDP), it appears that some of this advice will be taken.
However, any recovery will be slow and could disappoint the more optimistic
observers. As a result, Asia will probably continue to act as a brake on both
the U. S. and European growth.
LIQUIDITY SUPPORTING EQUITY MARKETS
U.S. stocks have continued to march upward with the S&P 500(REGISTRATION MARK)
Index rising by 17.7% over the first six months of 1998. It is interesting to
note that this rise has occurred despite falling earnings estimates. The fact
that this has been happening indicates something else could be influencing the
direction of stock prices. Clearly this could be massive liquidity which has
been flooding into equity mutual funds. It appears that U.S. investors
anticipate a continuation of above-average returns from equities. At the same
time, foreign investors have been attracted to our markets because of the
positive economic fundamentals as well as the strong dollar.
LOW INFLATION AND FOREIGN DEMAND SUPPORTING BOND MARKET
The bond market has continued to benefit from both low inflation as well as
strong foreign demand. Economic uncertainty in Asia and Eastern Europe has
encouraged a "flight to safety" by nervous investors.
How long will the bull market in the U.S. continue? It is difficult to be sure
how long the rise in stocks and bonds will persist. However, it appears that
liquidity, rather than fundamental developments, are driving it. At the moment,
the Japanese government appears likely to take steps to address its banking
problems and stimulate
4
<PAGE>
THE MARKET ENVIRONMENT
ECONOMIC REVIEW
JUNE 30, 1998 (CONTINUED)
economic growth. If these efforts are successful, it would be logical to expect
a reversal in the foreign liquidity flows into the U.S. financial markets. While
that would probably not be enough to precipitate a major decline in stock and
bond prices, it could force a short-term correction.
MARKET VOLATILITY A CONCERN, BUT ECONOMIC PROSPECTS STILL FAVORABLE
In the meantime, investors should expect rising volatility as various events
combine with the gradually deteriorating fundamental outlook. They can take
heart, however, in the current belief that no recession is looming in the
foreseeable future.
DAVID L. MEAD
VICE PRESIDENT AND CHIEF INVESTMENT OFFICER
HARRIS TRUST AND SAVING BANK
5
<PAGE>
THE MARKET ENVIRONMENT
FIXED INCOME MARKETS REVIEW
JUNE 30, 1998
Both global and domestic events strongly influenced prices of fixed income
securities during the first half of 1998. The economic turmoil that wracked
Asian markets sparked a global flight to quality, where the U.S. Government bond
market was perceived as a safe haven for foreign investors. Consequently, there
was strong demand for U.S. Government securities throughout the period. In fact,
U.S. Treasury bond yields were propelled to record lows during the second
quarter.
Tempering the strong foreign demand was uncertainty over the U.S. Federal
Reserve Board's monetary policy. Economic data provided mixed signals for Fed
watchers. Although the U.S. economy continued to expand at a strong pace,
inflation was relatively subdued. In addition, the Fed's ability to raise rates
to moderate economic growth was hampered by the Asian crisis and subsequent
financial problems in Russia.
In the non-Treasury sectors, the focus was on the banking and brokerage sectors
as ever-larger institutions announced their intention to merge. Unlike the
merger and acquisition activity of a decade ago, these deals are being done with
stock. Credit implications for these institutions, as a result, have been much
more positive. On the other hand, concerns about the Asian situation and its
implications for the profits of companies doing business there weighed on
corporate issues.
Investor fears of ballooning prepayments in the mortgage-backed market --
resulting from a wave of refinancings -- served to cap price appreciation in
that sector, while asset backed securities rebounded from the supply glut of
late 1997 to post strong performance.
At the end of June, short-term interest rates held steady, while long-term rates
had fallen over 30 basis points, largely because of the very positive inflation
news released during the quarter.
MARK E. NEWlIN, C.F.A.
DIRECTOR OF FIXED INCOME MANAGEMENT
HARRIS INVESTMENT MANAGEMENT, INC.
6
<PAGE>
THE MARKET ENVIRONMENT
EQUITY MARKETS REVIEW
JUNE 30, 1998
For the first six months of 1998, the broad equity market, as represented by the
S&P 500(REGISTRATION MARK) Index, appreciated 17.7%. The market's strong showing
belied the resurgent volatility during the second quarter.
After a very strong first quarter, equity investors were treated to a wild ride
in the second quarter, with early gains followed by significant retrenchment. In
particular, THE WALL STREET JOURNAL referred to the second quarter as one of
"quality and misery" -- with consumer oriented companies "tasting victory" and
industrial goods companies such as oil drillers and paper manufacturers going
"down in flames."
The S&P 500 produced a total return of 13.95% in the first quarter, one of the
best quarters in the history of the market. Every equity mutual fund category
produced positive returns, including sector funds that had lagged, such as
emerging markets. In the second quarter, the S&P 500 rose 3.3%.
And yet, a number of factors weighed heavily on the markets. The first was
heightened anxiety over the Asian financial crisis and its ultimate impact on
U.S. corporations and their profits. In addition, investors worried that an
inevitable slowing of the U.S. economy would eventually, if not this year, begin
to be reflected in corporate earnings. Investors have been bracing themselves
for such a slowdown for some time.
Supporting the market were massive amounts of liquidity from U.S. mutual fund
buyers and foreign investors. Foreign buyers, in particular, sought a "safe
haven" in U.S. dollar-denominated securities such as stocks and bonds.
Individual investors in the U.S. have participated in the market in a variety of
ways, whether purchasing individual stocks and mutual funds on their own or
funding their retirement by investing in stocks and funds through
company-sponsored defined contribution 401(k) plans.
In hindsight, it is surprising the market was able to perform so well, despite
the continued deterioration of the situation in Asia, the inability of Japan to
address its seven years of recession, and the serious financial turmoil of the
Russian economy.
WILLIAM O. LESZINSKE
PRESIDENT AND CHIEF INVESTMENT OFFICER
HARRIS INVESTMENT MANAGEMENT, INC.
7
<PAGE>
HARRIS INSIGHT FUNDS
GOVERNMENT MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
AGENCY OBLIGATIONS -- 22.9%
FEDERAL HOME LOAN BANK -- 11.8%
5.810% 11/04/98 $10,000 $ 9,997,977
5.825% 12/17/98 15,000 14,997,259
5.605% 03/12/99 10,000 9,998,314
5.630% 05/05/99 10,000 9,990,256
------------
44,983,806
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 3.5%
4.940% 02/23/99 3,500 3,483,993
5.540% 04/02/99 10,000 9,985,161
------------
13,469,154
------------
STUDENT LOAN MARKETING ASSOCIATION -- 7.6%
5.600% 08/11/98 9,000 8,997,869
5.775% 09/09/98 10,000 9,998,726
5.820% 09/16/98 10,000 9,999,024
------------
28,995,619
------------
TOTAL AGENCY OBLIGATIONS
(Cost $87,448,579) 87,448,579
------------
VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER) -- 34.5%
FEDERAL HOME LOAN BANK -- 17.2%
5.630% 07/01/98* 15,000 14,989,170
5.790% 07/01/98* 11,000 11,006,210
5.446% 07/06/98* 5,000 4,996,878
5.456% 07/11/98* 10,000 9,995,779
5.427% 07/17/98* 10,000 9,998,312
5.432% 07/20/98* 15,000 14,998,575
------------
65,984,924
------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 2.6%
5.446% 07/06/98* 5,000 4,996,860
5.488% 07/27/98* 4,950 4,948,359
------------
9,945,219
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 1.6%
5.261% 07/07/98* 6,000 6,000,000
------------
STUDENT LOAN MARKETING ASSOCIATION -- 13.1%
5.321% 07/07/98* 10,000 9,999,540
5.341% 07/07/98* 10,000 10,000,490
5.351% 07/07/98* 5,000 4,986,121
5.391% 07/07/98* 15,000 15,000,000
5.621% 07/07/98* 10,000 9,996,120
------------
49,982,271
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $131,912,414) 131,912,414
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
REPURCHASE AGREEMENTS -- 42.7%
Bank of Tokyo
5.875%
Agreement dated 06/30/98,
proceeds at maturity
$76,012,403 (Collateralized by
$76,415,000 FNMA 6.560% to
7.330%, due from 04/29/05
to 03/24/08. The market value
is $77,614,139.) 07/01/98 $76,000 $ 76,000,000
Donaldson, Lufkin & Jenrette
Securities Corp.
5.850%
Agreement dated 06/30/98,
proceeds at maturity
$19,003,088 (Collateralized by
$19,400,000 FHLB 5.92%,
due 04/16/01. The market
value is $19,466,728.) 07/01/98 19,000 19,000,000
Lehman Brothers, Inc.
6.000%
Agreement dated 06/30/98,
proceeds at maturity
$68,335,387 (Collateralized by
$66,408,268 FHLMC and FNMA
6.891% to 8.636%, due
from 10/01/18 to 12/01/26.
The market value is
$69,686,479.) 07/01/98 68,324 68,324,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $163,324,000) 163,324,000
------------
TOTAL INVESTMENTS -- 100.1%
(Cost $382,684,993) 382,684,993
------------
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) (220,623)
------------
NET ASSETS -- 100.0%
Applicable to 104,264,468 and
278,199,974 shares outstanding of
Institutional Class and Class A,
respectively, $.001 par value;
1.5 billion authorized shares (Note 7) $382,464,370
============
NET ASSET VALUE, OFFERING 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 06/30/98.
* Date of next interest rate reset.
See Notes to Financial Statements.
8
<PAGE>
HARRIS INSIGHT FUNDS
MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
ASSET-BACKED SECURITIES -- 4.0%
DVI 1998-1 A
5.690% 06/10/99 $17,363 $ 17,360,487
Green Tree Lease Finance
5.906% 01/20/99 6,015 6,014,924
The Money Store Auto Grantor Trust
5.690% 10/20/98 583 582,509
World Financial Properties
5.686% 07/08/98 32,502 32,502,075
World Omni Auto Lease
5.655% 05/14/99 16,000 16,000,000
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $72,459,995) 72,459,995
------------
CERTIFICATES OF DEPOSIT -- 6.7%
Bankers Trust Co.
5.565% 07/01/98 25,000 24,988,395
5.750% 07/01/98 45,000 44,976,372
6.000% 12/10/98 9,745 9,745,000
Societe Generale
5.960% 10/21/98 43,690 43,684,875
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $123,394,642) 123,394,642
------------
COMMERCIAL PAPER -- 22.5%
CNA Financial Corp.
5.700% 07/20/98 11,640 11,604,983
5.720% 07/23/98 6,760 6,736,370
Comdisco, Inc.
5.710% 07/20/98 6,000 5,981,918
Commonwealth Edison Co.
5.750% 07/15/98 16,000 15,964,222
Countrywide Home Loans,Inc.
5.530% 07/01/98 25,000 25,000,000
Enterprise Funding Corp.
5.650% 07/29/98 3,000 2,986,817
General Electric Capital Corp.
6.300% 07/01/98 80,000 80,000,000
Household International
5.560% 07/15/98 40,000 39,913,511
ICI Wilmington
6.550% 07/01/98 15,000 15,000,000
Lockheed Martin Corp.
5.700% 07/09/98 12,000 11,984,800
Quincy Capital Corp.
5.600% 07/22/98 55,286 55,105,399
Ryder System Inc.
5.650% 07/10/98 7,000 6,990,112
Sheffield Receivables Corp.
5.540% 07/10/98 62,500 62,413,437
5.540% 07/10/98 10,500 10,485,457
Variable Funding Capital Corp.
5.540% 07/02/98 39,083 39,076,986
5.600% 07/24/98 25,166 25,075,962
------------
TOTAL COMMERCIAL PAPER
(Cost $414,319,974) 414,319,974
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
CORPORATE BONDS -- 17.3%
Associates Corp. of North America
6.500% 09/09/98 $19,000$ 19,024,383
BankBoston Bank Note
5.905% 08/06/98 50,000 50,000,000
Bank One Wisconsin
5.550% 02/26/99 63,450 63,413,989
Bankers Trust Co.
5.910% 08/07/98 10,000 9,999,118
Beta Finance
5.850% 08/07/98 25,000 25,000,000
6.000% 10/27/98 43,000 43,000,000
Household Finance Co.
5.747% 03/08/99 42,650 42,650,000
PHH Corp.
5.985% 08/12/98 16,200 16,199,739
5.990% 08/18/98 6,925 6,925,000
Salomon, Inc.
6.700% 12/01/98 25,200 25,266,535
Sears Overseas Financial
0.000% 07/12/98 16,250 16,221,476
------------
TOTAL CORPORATE BONDS
(Cost $317,700,240) 317,700,240
------------
VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER) -- 39.8%
Banque Nationale de Paris
5.661% 07/07/98* 30,000 30,000,000
Chase Manhattan Corp.
5.656% 07/15/98* 9,000 9,001,309
Compagnie Bancaire
5.731% 07/07/98* 50,000 50,000,000
Federal Home Loan Bank
5.790% 07/01/98* 6,000 6,003,354
Federal National Mortgage Association
5.261% 07/07/98* 10,000 10,000,000
First National Bank of Chicago
5.516% 07/02/98* 23,500 23,483,206
Ford Motor Credit Corp.
5.938% 07/20/98* 8,500 8,514,407
General American Insurance Co.
5.850% 07/01/98* 60,000 60,000,000
Goldman Sachs Group
5.785% 07/01/98* 25,000 25,000,000
5.656% 07/15/98* 49,000 49,000,000
Kansas Electric Power Co.
5.700% 07/01/98* 10,000 10,000,000
Lehman Brothers Holdings, Inc.
5.777% 07/22/98* 65,000 65,000,000
Main Place Funding Corp.
5.866% 07/25/98 21,500 21,501,757
Morgan Stanley Dean Witter & Co.
5.606% 07/15/98* 70,000 70,003,683
5.670% 07/01/98* 5,600 5,602,035
PHH Corp.
5.690% 08/04/98* 30,000 29,995,881
See Notes to Financial Statements.
9
<PAGE>
HARRIS INSIGHT FUNDS
MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER) (CONTINUED)
PNC Bank Corp.
5.720% 07/01/98* $42,900 $ 42,874,664
5.786% 07/02/98* 30,000 29,979,592
Salomon, Inc.
5.788% 07/20/98 22,000 22,000,000
Sanwa Business Credit Corp.
5.761% 07/07/98* 20,000 20,000,000
Sigma Finance
5.620% 07/28/98* 70,000 70,000,000
Student Loan Marketing Association
5.341% 07/07/98* 10,000 10,000,490
Transamerica Funding Agreement
5.688% 07/15/98* 65,000 65,000,000
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $732,960,378) 732,960,378
------------
REPURCHASE AGREEMENTS -- 8.3%
Lehman Brothers, Inc.
6.000%
Agreement dated 06/30/98,
proceeds at maturity
$153,507,580 (Collateralized
by $152,090,650 FHLMC
and FNMA 6.167% to 7.737%,
due from 04/01/18 to
12/01/34. The market value
is $156,552,071.)
(Cost $153,482,000) 07/01/98 153,482 153,482,000
------------
SHARES VALUE(DAGGER)
---------- --------------
TEMPORARY INVESTMENTS -- 0.8%
Dreyfus Cash Management Plus, Inc.
Class A Shares 14,946,438 $ 14,946,438
Goldman Sachs Financial Square
Money Market Portfolio 63,789 63,789
J.P. Morgan Institutional Prime
Money Market Portfolio 7,732 7,732
Lehman Prime Money Market Fund
Class A Shares 3 3
--------------
TOTAL TEMPORARY INVESTMENTS
(Cost $15,017,962) 15,017,962
--------------
TOTAL INVESTMENTS -- 99.4%
(Cost $1,829,335,191) 1,829,335,191
--------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.6% 10,700,534
--------------
NET ASSETS -- 100.0%
Applicable to 1,133,784,841 and
706,255,465 shares outstanding of
Institutional Class and Class A,
respectively, $.001 par value;
3.55 billion authorized shares (Note 7) $1,840,035,725
==============
NET ASSET VALUE, OFFERING 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 06/30/98.
* Date of next interest rate reset.
See Notes to Financial Statements.
10
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS -- 95.0%
ALABAMA -- 0.8%
Chatom, Alabama, Industrial Development
Board Pollution Control Revenue Bonds
(Alabama Electric Project) PS
3.450% 08/15/98 $ 1,710 $ 1,709,677
Chatom, Alabama, Industrial Development
Board Pollution Control Revenue Bonds
(Alabama Electric Project) TECP
3.650% 09/10/98 5,300 5,300,000
------------
7,009,677
------------
ALASKA -- 3.6%
Anchorage, Alaska, Electric Utility Revenue
Bonds Series 1996D VR
3.550% 07/07/98 7,900 7,900,000
Valdez, Alaska, Marine Terminal Revenue
Bonds (Arco Transportation Project)
Series A TECP
3.650% 08/11/98 1,500 1,500,000
Valdez, Alaska, Marine Terminal Revenue
Bonds (Arco Transportation Project)
Series C TECP
3.650% 07/16/98 6,500 6,500,000
3.750% 08/10/98 6,300 6,300,000
3.600% 09/11/98 2,600 2,600,000
3.650% 10/15/98 7,000 7,000,000
------------
31,800,000
------------
ARIZONA -- 4.4%
Apache County, Arizona, Industrial
Development Authority Revenue
Bonds (Tucson Electric Power Co.)
Series 1983C VR
3.650% 07/07/98 10,550 10,550,000
Maricopa County, Arizona, Pollution
Control Revenue Refunding Bonds
(Arizona Public Service Co.) Series B VR
3.800% 07/01/98 5,000 5,000,000
Maricopa County, Arizona, Pollution
Control Revenue Bonds TECP
3.550% 07/09/98 6,450 6,450,000
Salt River, Arizona, Agricultural
Improvement & Power District
Project TECP
3.450% 08/14/98 8,000 8,000,000
3.750% 08/14/98 1,000 1,000,000
3.750% 09/14/98 7,000 7,000,000
3.600% 10/14/98 1,000 1,000,000
------------
39,000,000
------------
COLORADO -- 0.3%
Platte River Power Authority TECP
3.650% 09/09/98 2,500 2,500,000
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
CONNECTICUT -- 0.2%
Connecticut State Special Assessment
Unemployment Compensation
Advance Fund Revenue Bonds
(Connecticut Unemployment
Project) Series 1993C PS
3.900% 07/01/98 $ 2,000 $ 2,000,000
------------
DISTRICT OF COLUMBIA -- 0.6%
District of Columbia Supplemental
Student Loan Revenue Bonds
Series 1985 PS
4.100% 07/01/98 3,000 3,000,000
District of Columbia TRANS Series B
4.500% 09/30/98 2,000 2,003,020
------------
5,003,020
------------
FLORIDA -- 4.4%
Florida Municipal Power Agency
Series A TECP
3.600% 10/14/98 4,045 4,045,000
Gainesville, Florida, Utilities System
Series C TECP
3.600% 10/13/98 3,698 3,698,000
Jacksonville, Florida, Electric Authority
Revenue Bonds Series A TECP
3.750% 08/14/98 5,550 5,550,000
Palm Beach County, Florida, Health
Facilities Authority Revenue Refunding
Bonds (Pooled Hospital Loan
Project) TECP
3.500% 07/07/98 5,500 5,500,000
Putnam County, Florida, Development
Authority Pollution Control Revenue
Bonds (Seminole Electric Project)
Series D
3.650% 12/15/98 1,800 1,800,000
Sunshine State GFC TECP
3.600% 07/08/98 11,000 11,000,000
3.550% 07/13/98 2,050 2,050,000
3.750% 09/09/98 3,000 3,000,000
3.700% 10/16/98 2,500 2,500,000
------------
39,143,000
------------
GEORGIA -- 4.6%
Burke County, Georgia, Development
Authority Pollution Control Revenue
Bonds (Georgia Power Co. Plant Vogtle
Project) 3rd Series VR
3.800% 07/01/98 9,900 9,900,000
Burke County, Georgia, Development
Authority Pollution Control Revenue
Bonds (Georgia Power Co. Plant
Vogtle Project) 4th Series VR
3.750% 07/01/98 5,250 5,250,000
See Notes to Financial Statements.
11
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
GEORGIA (CONTINUED)
Georgia Municipal Electric Authority
Revenue Bonds TECP
3.450% 07/14/98 $15,000 $ 15,000,000
3.600% 07/17/98 1,900 1,900,000
3.650% 08/11/98 2,300 2,300,000
Georgia Municipal Electric Authority
Revenue Bonds VR
3.400% 07/07/98 4,000 4,000,000
Monroe County, Georgia, Development
Authority Pollution Control Revenue
Bonds (Georgia Power Co.) 2nd
Series VR
3.750% 07/01/98 2,500 2,500,000
------------
40,850,000
------------
HAWAII -- 1.2%
City & County of Honolulu, Hawaii TECP
3.400% 07/08/98 6,000 6,000,000
3.500% 07/15/98 4,800 4,800,000
------------
10,800,000
------------
ILLINOIS -- 6.3%
Chicago, Illinois, Park District TANS
4.750% 09/21/98 5,000 5,009,577
Cook County, Illinois, Revenue Bonds
(Catholic Charities) VR
3.550% 07/07/98 8,300 8,300,000
Illinois Development Finance Authority
Revenue Bonds (Lake Forest
Academy Project) VR
3.550% 07/07/98 1,100 1,100,000
Illinois Development Finance Authority
Revenue Bonds (Provena Health
Project) Series B VR
3.850% 07/01/98 5,000 5,000,000
Illinois Development Finance Authority
Revenue Bonds (Provena Health
Project) Series C VR
3.650% 07/07/98 10,000 10,000,000
Illinois Health Facilities Authority
Revenue Bonds (Loyola University)
Series B VR
3.400% 07/07/98 8,000 8,000,000
Illinois Health Facilities Authority
Revenue Bonds (SSM Health Care)
Series B TECP
3.700% 07/16/98 10,000 10,000,000
Kane, McHenry, Cook & De Kalb
Counties, Illinois, United School
District No. 300 TANS
4.300% 09/23/98 6,000 6,005,383
Peoria & Marshall Counties, Illinois,
Community Unit School
District No. 321 TANS
4.350% 11/02/98 2,000 2,001,196
------------
55,416,156
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
INDIANA -- 3.5%
Indiana Health Facilities Finance
Authority Hospital Revenue Bonds
(Charity Group) Series 1997F VR
3.400% 07/07/98 $ 8,000 $ 8,000,000
Rockport, Indiana, Pollution Control
Revenue Bonds (AEP Generating
Co. Project) Series A VR
3.850% 07/01/98 6,100 6,100,000
Rockport, Indiana, Pollution Control
Revenue Bonds (Indiana & Michigan
Power Co.) Series 1985A VR
3.650% 07/07/98 3,845 3,845,000
Rockport, Indiana, Pollution Control
Revenue Bonds (Indiana & Michigan
Power Co. Project) Series B VR
3.550% 07/07/98 13,000 13,000,000
------------
30,945,000
------------
IOWA -- 0.2%
Polk County, Iowa, Hospital Equipment
Authority Revenue Bonds VR
3.600% 07/07/98 1,380 1,380,000
------------
KANSAS -- 4.3%
Burlington, Kansas, Pollution Control
Revenue Bonds (Kansas City Power
& Light) Series A TECP
3.500% 07/13/98 9,300 9,300,000
3.600% 07/15/98 2,500 2,500,000
3.750% 08/10/98 2,000 2,000,000
Burlington, Kansas, Pollution Control
Revenue Bonds (Kansas City Power
& Light) Series B TECP
3.600% 07/17/98 3,200 3,200,000
3.700% 07/23/98 4,600 4,600,000
3.700% 08/11/98 1,250 1,250,000
3.500% 08/12/98 3,900 3,900,000
3.550% 08/13/98 9,800 9,800,000
Wichita, Kansas, General Obligation
Notes (Temp Notes) Series 194
4.250% 08/27/98 1,400 1,401,112
------------
37,951,112
------------
KENTUCKY -- 1.2%
Kentucky Economic Development
Finance Authority Hospital Facilities
Revenue Bonds (Baptist Healthcare
System) VR
3.500% 07/07/98 10,600 10,600,000
------------
LOUISIANA -- 4.2%
Caddo Parish, Louisiana, Industrial
Development Board Revenue
Bonds (Atlas Project) Series B VR
3.650% 07/07/98 6,500 6,500,000
See Notes to Financial Statements.
12
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
LOUISIANA (CONTINUED)
Jefferson Parish, Louisiana, Hospital
Service District No. 2 Revenue
Bonds (East Jefferson General
Hospital) VR
3.600% 07/07/98 $10,900 $ 10,900,000
Lake Charles Parish, Louisiana, Harbor
Terminal District Port Facilities
Revenue Bonds (E.I. du Pont de
Nemours Project) VR
3.850% 07/01/98 5,700 5,700,000
West Baton Rouge Parish, Louisiana,
Industrial District No. 3 Revenue
Bonds (Dow Chemical Co. Project)
Series B VR
3.900% 07/01/98 10,300 10,300,000
West Baton Rouge Parish,
Louisiana, TECP
3.550% 07/28/98 4,000 4,000,000
------------
37,400,000
------------
MARYLAND -- 3.4%
Baltimore County, Maryland,
Metropolitan District TECP
3.850% 07/02/98 5,000 5,000,000
Baltimore County, Maryland, TECP
3.600% 07/02/98 7,000 7,000,000
3.850% 07/02/98 6,100 6,100,000
Maryland Health & Higher Education
Facilities Series C TECP
3.800% 07/01/98 1,304 1,304,000
3.750% 07/10/98 6,646 6,646,000
Maryland State Community
Development Administration
Department of Housing & Community
Revenue Bonds Series A
4.000% 07/01/98 1,000 1,000,000
Montgomery County, Maryland, TECP
3.750% 07/09/98 2,700 2,700,000
------------
29,750,000
------------
MICHIGAN -- 3.8%
Grand Rapids, Michigan, Economic
Development Corp. Economic
Development Revenue Bonds
(Amway Hotel Corp.) Series A VR
3.600% 07/07/98 5,855 5,855,000
Kent County, Michigan, Hospital
Finance Authority Revenue Bonds
(Spectrum Health Project)
Series B VR
3.450% 07/07/98 10,000 10,000,000
Michigan State Hospital Finance
Authority Revenue Bonds
Series 1997F VR
3.400% 07/07/98 8,700 8,700,000
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
Michigan Underground Storage Tank
Finance Assurance Authority
Revenue Bonds TECP
3.750% 08/10/98 $ 7,325 $ 7,325,000
Oakland County, Michigan, Economic
Development Corp. Limited Obligation
Revenue Bonds (Cranbrook
Educational Community) Series A VR
3.550% 07/07/98 2,000 2,000,000
------------
33,880,000
------------
MINNESOTA -- 1.8%
Rochester, Minnesota, Health Care
Facilities Revenue Bonds (Mayo
Foundation/Mayo Medical Center)
Series C TECP
3.650% 08/19/98 6,750 6,750,000
Rochester, Minnesota, Health Care
Facilities Revenue Bonds Series E TECP
3.700% 08/26/98 4,410 4,410,000
Southern Minnesota Municipal
Power Agency Power Supply
Revenue Bonds TECP
3.600% 07/15/98 5,000 5,000,000
------------
16,160,000
------------
MISSISSIPPI -- 0.6%
Claiborne County, Mississippi,
Pollution Control Revenue Bonds TECP
3.700% 07/09/98 1,000 1,000,000
Mississippi Hospital Equipment
Facilities Authority Revenue Bonds TECP
3.600% 10/13/98 4,500 4,500,000
------------
5,500,000
------------
MISSOURI -- 3.2%
Independence County, Missouri,
Water Utility Revenue Bonds TECP
3.850% 07/10/98 1,000 1,000,000
3.800% 07/17/98 3,200 3,200,000
Missouri State Health & Educational
Facilities Authority Revenue Bonds
(Washington University) Series B VR
3.850% 07/01/98 2,600 2,600,000
Missouri State Health & Educational
Facilities Authority Revenue Bonds
(Washington University)
Series 1996A VR
3.850% 07/01/98 11,200 11,200,000
St. Louis County, Missouri, Industrial
Development Authority Hospital
Revenue Bonds (Charity Obligation
Group) Series E VR
3.400% 07/07/98 10,000 10,000,000
------------
28,000,000
------------
See Notes to Financial Statements.
13
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
NEBRASKA -- 1.6%
City of Lincoln, Nebraska,
Electric System TECP
3.750% 09/09/98 $ 1,600 $ 1,600,000
3.600% 09/11/98 6,300 6,300,000
Nebraska Educational Facilities
Authority Revenue Bonds VR
3.800% 07/07/98 1,000 1,000,000
Nebraska Public Power District Electric
System Revenue Bonds Series A TECP
3.700% 07/08/98 5,000 5,000,000
------------
13,900,000
------------
NEW MEXICO -- 1.1%
State of New Mexico General
Obligation Bonds
5.500% 09/01/98 3,100 3,108,841
State of New Mexico General
Obligation Bonds (Capital Project)
6.100% 09/01/98 6,504 6,528,673
------------
9,637,514
------------
NEW YORK -- 4.8%
New York City General Obligation
Bonds Series 1993C VR
4.100% 07/01/98 1,500 1,500,000
New York City General Obligation
Bonds Series 1995F-3 VR
3.450% 07/07/98 1,400 1,400,000
New York City General Obligation
Bonds Subseries A-10 VR
4.100% 07/01/98 1,400 1,400,000
New York City General Obligation
Bonds Subseries B-2 VR
4.100% 07/01/98 11,800 11,800,000
New York City General Obligation
Bonds Subseries B-4 VR
4.100% 07/01/98 5,000 5,000,000
4.100% 07/07/98 6,400 6,400,000
New York State Energy Research &
Development Authority Pollution
Control Revenue Bonds (Niagara
Mohawk Power Corp.) Series B VR
3.800% 07/01/98 10,000 10,000,000
New York State Energy Research &
Development Authority Pollution
Control Revenue Bonds (Niagara
Mohawk Power Corp.) Series C VR
3.800% 07/01/98 5,150 5,150,000
------------
42,650,000
------------
OHIO -- 1.3%
Cuyahoga County, Ohio, Hospital
Revenue Bonds (Cleveland Clinic
Foundation) Series C VR
3.550% 07/07/98 7,000 7,000,000
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Ohio State Air Quality Development
Authority Revenue Bonds Series A VR
3.800% 07/01/98 $ 4,400 $ 4,400,000
------------
11,400,000
------------
OKLAHOMA -- 5.6%
Muskogee, Oklahoma, Industrial Trust
Pollution Control Revenue Bonds
(Oklahoma Gas & Electric Co.)
Series A VR
3.600% 07/07/98 18,900 18,900,000
Oklahoma City Industrial & Cultural
Trust Revenue Bonds
(SSM Health Care) Series B TECP
3.700% 08/18/98 5,000 5,000,000
3.700% 08/20/98 10,000 10,000,000
3.700% 08/21/98 5,000 5,000,000
3.700% 08/25/98 5,000 5,000,000
Tulsa, Oklahoma, Industrial Authority
Revenue Bonds (University of Tulsa)
Series B VR
3.600% 07/07/98 5,550 5,550,000
------------
49,450,000
------------
OREGON -- 0.5%
Oregon State Housing & Community
Service Department Mortgage
Revenue Bonds (Single Family
Mortgage Project) Series C
3.750% 05/13/99 3,000 3,000,000
Port of Saint Helens, Oregon,
Pollution Control Revenue Bonds
(Portland General Electric)
Series B VR
4.150% 07/01/98 1,500 1,500,000
------------
4,500,000
------------
SOUTH CAROLINA -- 1.2%
Columbia, South Carolina, Water Works
& Sewer System Revenue Bonds
6.200% 02/01/99 1,595 1,616,747
South Carolina Public Service
Authority Revenue Bonds TECP
3.700% 09/10/98 9,063 9,063,000
------------
10,679,747
------------
TENNESSEE -- 1.7%
Tennessee State BANS Series A VR
3.400% 07/01/98 15,000 15,000,000
------------
TEXAS -- 7.1%
Bexar County, Texas, Metropolitan
Water District Revenue Bonds TECP
3.900% 07/17/98 1,500 1,500,000
Brazos River Authority, Texas,
Pollution Control Revenue Bonds
(Monsanto Co. Project) VR
3.700% 07/07/98 2,200 2,200,000
See Notes to Financial Statements.
14
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
TEXAS (CONTINUED)
Brazos River, Texas, Revenue Bonds
(Dow Chemical) TECP
3.650% 08/19/98 $ 6,050 $ 6,050,000
Denton, Texas, Independent School
District General Obligation Bonds
Series B PS
3.900% 08/15/98 5,000 5,000,000
Nueces County, Texas, Health
Facilities Development Corp.
Revenue Bonds (Driscoll Children's
Foundation Project) VR
3.650% 07/07/98 2,480 2,480,000
State of Texas (Certificates Bankers
Trust Partnership-308) VR
3.650% 07/07/98 5,135 5,135,000
Texas Higher Education Authority
Revenue Bonds Series 1985B VR
3.600% 07/07/98 5,410 5,410,000
Texas Small Business Industrial
Development Revenue Bonds
Series 1986 VR
3.650% 07/07/98 20,500 20,500,000
Texas State TRANS Series A
4.750% 08/31/98 10,000 10,014,637
University of Texas Notes Series A TECP
3.700% 09/14/98 4,000 4,000,000
------------
62,289,637
------------
UTAH -- 5.0%
Emery County, Utah, Pollution Control
Revenue Bonds (Pacificorp Project) VR
3.850% 07/01/98 16,940 16,940,000
Intermountain Power Agency
Series F TECP
3.750% 08/12/98 2,000 2,000,000
Intermountain Power Agency
Power Supply Revenue Bonds
Series E TECP
3.600% 07/10/98 4,100 4,100,000
Intermountain Power Agency
Power Supply Revenue Bonds
Series F PS
3.450% 09/15/98 15,500 15,486,758
Intermountain Power Agency
Power Supply Revenue Bonds
Series F TECP
3.600% 09/03/98 5,200 5,200,000
------------
43,726,758
------------
VIRGINIA -- 0.6%
Peninsula Port Authority of Virginia
Coal Terminal Revenue Bonds
(Dominion Terminal Associates
Project) Series 1987D VR
3.850% 07/01/98 5,305 5,305,000
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
WASHINGTON -- 1.6%
Seattle, Washington, General
Obligation Bonds (Limited Tax
Project) Series B
4.500% 03/01/99 $ 1,500 $ 1,508,731
Washington State General
Obligation Series 1996B VR
3.450% 07/07/98 1,000 1,000,000
Washington State Public Power
Supply System Nuclear
Project No. 1 Refunding Revenue
Bonds Series 1A-1 VR
3.500% 07/07/98 8,500 8,500,000
Washington State Public Power
Supply System Nuclear
Project No. 1 Revenue Bonds
Series 1993 1A-3 VR
3.450% 07/07/98 3,400 3,400,000
------------
14,408,731
------------
WISCONSIN -- 9.4%
Burlington Area Wisconsin
School District TRANS
4.240% 09/15/98 4,575 4,575,813
Dodgeville, Wisconsin,
School District TRANS
4.140% 10/06/98 3,000 3,000,304
Hamilton, Wisconsin,
School District TRANS
4.100% 08/25/98 3,000 3,000,389
Hortonville, Wisconsin,
School District TRANS
4.180% 10/21/98 2,500 2,500,215
Jefferson, Wisconsin,
School District TRANS
4.170% 09/08/98 1,190 1,190,106
Kenosha, Wisconsin, Unified
School District No. 1 TRANS
4.200% 09/28/98 5,000 5,000,584
4.280% 09/28/98 3,800 3,801,154
Lake Mills, Wisconsin, School
District TRANS
4.130% 09/01/98 2,000 2,000,097
Middleton-Cross Plains, Wisconsin,
Area School District TRANS
4.250% 08/26/98 3,500 3,501,031
Milwaukee, Wisconsin, General
Obligation Bonds Series 22 VR
3.800% 07/01/98 10,000 10,000,000
New London, Wisconsin, School
District BANS
4.200% 12/01/98 9,500 9,513,582
Onalaska, Wisconsin, School
District TRANS
4.180% 10/21/98 1,350 1,350,116
Oshkosh, Wisconsin, Area School
District TRANS
4.150% 08/24/98 5,000 5,001,851
See Notes to Financial Statements.
15
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ------------ -------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
WISCONSIN (CONTINUED)
Rhinelander, Wisconsin,
School District TRANS
4.100% 09/28/98 $ 5,450 $ 5,450,246
Shorewood, Wisconsin,
School District TRANS
4.100% 09/01/98 5,000 5,000,403
Waterloo, Wisconsin,
School District TRANS
4.200% 10/09/98 1,450 1,450,378
Waupun, Wisconsin,
School District BANS
4.350% 12/01/98 3,750 3,755,338
West de Pere, Wisconsin,
School District TRANS
4.130% 09/29/98 1,700 1,700,120
Wisconsin State Health & Educational
Facilities Authority Revenue Bonds
Series 1997F VR
3.400% 07/07/98 11,000 11,000,000
------------
82,791,727
------------
WYOMING -- 0.9%
Platte County, Wyoming, Pollution
Control Revenue Bonds (Tri-State
Generation and Transmission
Project) Series B VR
3.800% 07/01/98 7,800 7,800,000
------------
TOTAL MUNICIPAL BONDS
(Cost $838,627,079) 838,627,079
------------
SHARES VALUE(DAGGER)
---------- ------------
TEMPORARY INVESTMENTS -- 4.6%
Federated Tax-Free Obligation Fund 20,276,131 $ 20,276,131
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 19,998,965 19,998,965
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $40,275,096) 40,275,096
------------
TOTAL INVESTMENTS -- 99.6%
(Cost $878,902,175) 878,902,175
------------
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.4% 3,312,597
------------
NET ASSETS -- 100.0%
Applicable to 685,091,830 and 197,109,274
shares outstanding of Institutional Class
and Class A, respectively, $.001 par value;
1.5 billion authorized shares (Note 7) $882,214,772
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE EACH 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 06/30/98.
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 and Revenue Anticipation Note.
See Notes to Financial Statements.
16
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
AGENCY OBLIGATIONS -- 2.9%
AID - Israel Guaranteed Notes
6.050% 08/15/00 $ 520 $ 524,550
Federal Home Loan Bank
7.360% 07/01/04 1,000 1,081,250
Federal Home Loan Mortgage Corp.
7.100% 04/10/07 2,500 2,713,575
Federal National Mortgage
Association
8.400% 10/25/04 5,000 5,179,799
------------
TOTAL AGENCY OBLIGATIONS
(Cost $9,090,375) 9,499,174
------------
ASSET-BACKED SECURITIES -- 25.6%
AESOP Funding II Series 1997-1,
Class A1
6.220% 10/20/01 5,000 5,025,000
AFC Home Equity Loan Trust
Series 1991-4, Class A
7.750% 12/15/06 67 68,617
Banco Nacional de Mexico, S.A.
Series 1996-A, Class A1
6.250% 12/01/03 5,000 5,014,258
BankAmerica Manufactured Housing
Contract Series 1998-2, Class B1
7.930% 11/10/28 4,300 4,313,437
Bridgestone/Firestone Master
Trust Series 1996-1, Class A
6.170% 07/01/03 4,000 4,026,635
Capita Equipment Receivables
Trust Series 1996-1, Class A4
6.280% 06/15/00 3,500 3,516,718
Case Equipment Loan Trust
Series 1997-A, Class B
6.700% 03/15/04 750 768,311
Charming Shoppes Master Trust
Series 1997-1, Class A
6.206% 04/15/06 2,500 2,500,000
Chemical Credit Card Master Trust I
Series 1996-1, Class A
5.550% 09/15/03 3,000 2,984,493
Citibank Credit Card Master Trust I
Series 1997-2, Class B
6.700% 02/15/04 5,000 5,113,530
Citibank Credit Card Master Trust I
Series 1998-1, Class A
5.750% 01/15/03 2,000 1,989,000
Credit Card Receivable Trust
Series 1998-IA, Class A
6.478% 12/22/04 2,956 2,961,035
First Bankcard Credit Card Master
Trust Private Placement
Series 1997-1, Class A
6.020% 05/15/03 3,000 2,999,531
First USA Credit Card Master Trust
Series 1997-6, Class A
6.420% 03/17/05 930 949,563
Ford Credit Auto Loan Master Trust
Series 1995-1, Class A
6.500% 08/15/02 1,000 1,012,232
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
ASSET-BACKED SECURITIES (CONTINUED)
Goldome Credit Corp. Home Equity
Trust Series 1990-1, Class A
10.000% 07/15/05 $ 112 $ 112,857
Green Tree Financial Corp.
Series 1996-1, Class A2
5.850% 03/15/27 4,250 4,247,393
Green Tree Financial Corp.
Series 1997-4, Class A5
6.880% 02/15/29 5,365 5,465,298
MBNA Corp. Series 1998-C, Class C
6.350% 11/15/05 3,000 3,000,937
Merrill Lynch Home Equity Loan
Series 1994-1, Class A1
6.115% 07/15/22 319 318,123
Metris Master Trust
Series 1997-1, Class A
6.870% 10/20/05 1,725 1,786,138
Onyx Acceptance Grantor Trust,
Series 1998-A, Class A3
5.850% 08/15/02 4,000 4,000,000
Premier Auto Trust
Series 1995-4, Class CTFS
6.200% 09/06/00 4,662 4,704,550
Rental Car Funding Corp.
Series 1997-1, Class A3
6.600% 09/25/07 6,300 6,400,406
SBC Glacier Finance Ltd.
Series 1997-1, Class A
5.848% 09/10/04 3,500 3,500,000
The Money Store Home Equity
Trust Series 1994-B, Class A3
7.100% 11/15/16 1,714 1,733,879
Toyota Auto Lease Trust
Series 1997-A, Class B
6.750% 04/26/04 3,500 3,542,109
WFS Financial Owner Trust
Series 1996-A, Class A3
6.050% 06/01/00 743 743,912
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $82,099,426) 82,797,962
------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 19.6%
Asset Securitization Corp.
Series 1997-D4, Class PS1 IO
1.012% 04/14/29 68,184 5,145,782
Chase Mortgage Finance Corp.
Series 1993-0, Class A5
6.600% 12/25/09 3,557 3,593,766
DLJ Mortgage Acceptance Corp.
Series 1995-Q1, Class A1-S IO
1.605% 03/25/25 271 56,839
DLJ Mortgage Acceptance Corp.
Series 1996-M, Class A1
8.975% 11/28/11 6,145 6,319,319
DLJ Mortgage Acceptance Corp.
Series 1997-CF2, Class CP IO
1.363% 11/15/04 51,000 3,617,812
See Notes to Financial Statements.
17
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal Home Loan Mortgage Corp.
Series 1571, Class BA PO
12.870% 04/15/19 $ 60 $ 59,350
Federal National Mortgage Association
Series 116, Class 2 IO
9.000% 12/25/21 7,075 1,752,260
Federal National Mortgage Association
Series 1990-32, Class E
9.000% 12/25/04 6,650 6,853,357
Federal National Mortgage Association
Series 1993-183, Class M
6.500% 07/25/23 2,000 1,990,000
Federal National Mortgage Association
Series 1994-85, Class E
6.000% 11/25/06 1,300 1,303,270
Federal National Mortgage Association
Series 1996-M4, Class A
7.750% 03/17/17 4,320 4,391,126
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 30,734 1,344,623
Federal National Mortgage Association
Series 1997-70, Class PE PO
6.370% 04/25/22 6,669 5,286,454
Federal National Mortgage Association
Series G-18, Class Z
8.750% 06/25/21 2,729 2,936,917
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 2,615 2,637,343
PNC Mortgage Securities Corp.
Series 1996-2, Class A4
6.600% 02/25/11 4,534 4,575,088
PNC Mortgage Securities Corp.
Series 1997-5, Class A8
6.750% 10/25/27 6,000 6,032,812
Residential Funding Mortgage Security I
Series 1996-S4, Class A13
7.250% 02/25/26 5,366 5,482,789
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $63,893,520) 63,378,907
------------
MORTGAGE-BACKED SECURITIES -- 5.2%
Federal Home Loan Mortgage Corp.
7.500% 05/01/27 816 836,877
Federal National Mortgage
Association Pool #303724
6.000% 01/01/11 6,312 6,304,533
Federal National Mortgage
Association Pool #305189
9.000% 01/01/25 41 42,924
Federal National Mortgage
Association Pool #305555
9.000% 01/01/25 300 316,885
Federal National Mortgage
Association Pool #306031
9.000% 02/01/25 623 658,546
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Federal National Mortgage
Association Pool #306674
9.000% 03/01/25 $ 273 $ 288,540
Federal National Mortgage
Association Pool #317306
9.000% 07/01/25 198 208,909
Federal National Mortgage
Association Pool #338001
9.000% 10/01/25 15 15,537
Government National Mortgage
Association Pool #8747
7.000% 11/20/25 138 140,685
Government National Mortgage
Association Pool #326150
7.000% 09/15/23 219 223,528
Government National Mortgage
Association Pool #333668
7.000% 07/15/23 634 647,595
Government National Mortgage
Association Pool #345039
7.000% 09/15/23 703 718,728
Government National Mortgage
Association Pool #345536
7.000% 01/15/24 485 495,697
Government National Mortgage
Association Pool #351638
7.000% 06/15/23 643 657,377
Government National Mortgage
Association Pool #377553
7.000% 07/15/25 656 667,182
Government National Mortgage
Association Pool #383330
7.000% 07/15/25 945 960,514
Government National Mortgage
Association Pool #391901
7.000% 07/15/25 708 720,075
Government National Mortgage
Association Pool #397755
7.000% 05/15/24 621 634,231
Government National Mortgage
Association Pool #406568
7.000% 07/15/25 764 776,200
Government National Mortgage
Association Pool #407660
7.000% 07/15/25 686 697,445
Government National Mortgage
Association Pool #780023
7.000% 09/15/24 746 760,780
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $16,214,782) 16,772,788
------------
CORPORATE BONDS -- 24.7%
ELECTRIC -- 0.7%
Consolidated Edison Co., Inc.
6.625% 07/01/05 2,150 2,233,312
------------
See Notes to Financial Statements.
18
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
CORPORATE BONDS (CONTINUED)
FINANCE - BANK -- 3.8%
First Chicago NBD Bancorp
7.250% 08/15/04 $ 3,320 $ 3,519,200
National City Capital Trust I
6.750% 06/01/99 3,600 3,622,500
Sanwa Business Credit Corp.
5.728% 03/13/00 5,000 4,999,000
------------
12,140,700
------------
FINANCE - NON-BANK -- 8.4%
American Express Credit Corp.
6.125% 11/15/01 440 442,750
Associates Corp. of North America
5.750% 10/15/03 190 187,387
Associates Corp. N.A. Euro Bond
6.875% 06/20/02 1,775 1,817,156
Beneficial Corp.
8.400% 05/15/08 20 23,075
Beneficial Finance Corp., MTN
9.130% 07/25/01 1,000 1,085,000
Case Credit Corp.
5.930% 02/26/01 4,000 3,985,000
Caterpillar Financial Services
Corp., MTN
8.290% 03/04/99 1,000 1,015,720
Hartford Life, Inc.
7.100% 06/15/07 3,725 3,887,969
Household Finance Corp.
8.550% 10/15/04 3,000 3,082,500
Lehman Brothers Holdings, Inc.
7.375% 05/15/04 4,540 4,755,650
PDVSA Finance, Ltd. Series 1998-1B
6.650% 02/15/06 1,200 1,183,500
Racers QHEL Series 1997, Class A-1
9.499% 05/15/17 1,115 1,128,937
Salomon Smith Barney Holdings, Inc.
5.875% 02/01/01 3,885 3,870,431
SunAmerica, Inc.
5.600% 07/31/97 1,050 825,563
------------
27,290,638
------------
INDUSTRIAL -- 8.8%
Browning - Ferris Industries, Inc.
6.100% 01/15/03 1,000 1,003,750
E.I. du Pont de Nemours & Co. Euro
7.500% 06/11/99 440 446,600
Ford Motor Co.
9.000% 09/15/01 4,000 4,340,000
Heinz (H.J.) Co. Euro
7.500% 04/26/00 1,000 1,023,750
James River Corp.
6.700% 11/15/03 4,000 4,070,000
Lockheed Martin Corp.
6.550% 05/15/99 4,200 4,221,000
Raytheon Co.
6.750% 08/15/07 3,765 3,887,363
Sears, Roebuck & Co. MTN
8.390% 02/14/02 800 859,000
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
CORPORATE BONDS (CONTINUED)
INDUSTRIAL (CONTINUED)
Sears, Roebuck Acceptance Corp.
6.020% 02/20/03 $ 1,400 $ 1,389,500
Union Pacific Resources Group, Inc.
6.500% 05/15/05 3,700 3,677,430
Walt Disney Co.
6.375% 03/30/01 2,785 2,826,775
WMX Technologies, Inc.
6.250% 10/15/00 700 701,750
------------
28,446,918
------------
OIL -- 0.0%
Atlantic Richfield Co.
9.125% 03/01/11 100 125,000
------------
OTHER UTILITIES -- 0.5%
KN Energy, Inc.
6.450% 03/01/03 1,530 1,545,300
------------
TRANSPORTATION -- 2.5%
CSX Corp.
7.250% 05/01/27 4,730 5,072,925
Norfolk Southern Corp.
7.350% 05/15/07 3,000 3,191,250
------------
8,264,175
------------
TOTAL CORPORATE BONDS
(Cost $78,329,261) 80,046,043
------------
INTERNATIONAL BONDS -- 1.5%
Telstra Corp. Ltd. Euro Bond
(Cost $4,580,589)
6.500% 11/28/05 4,625 4,734,844
------------
SUPRANATIONAL BONDS -- 1.0%
African Development Bank
(Cost $3,094,719)
7.750% 12/15/01 3,000 3,176,250
------------
YANKEE BONDS -- 5.7%
Banco Santiago S.A.
7.000% 07/18/07 3,730 3,450,250
Cable & Wireless Communications Notes
6.625% 03/06/05 955 965,744
Empresa Nacional Electric
7.750% 07/15/08 2,400 2,394,000
Export-Import Bank Korea
6.500% 11/15/06 2,185 1,728,881
Glaxo Wellcome P.L.C. Euro Bond
6.125% 01/25/06 3,655 3,691,550
Korea Development Bank
5.875% 12/01/98 4,000 3,910,000
7.375% 09/17/04 1,415 1,142,613
Korea Electric Power Global
6.375% 12/01/03 1,455 1,158,544
------------
TOTAL YANKEE BONDS
(Cost $19,515,931) 18,441,582
------------
See Notes to Financial Statements.
19
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
U.S. TREASURY OBLIGATIONS -- 13.4%
U.S. TREASURY BILLS*-- 0.1%
5.190% 11/19/98 $ 250 $ 245,075
------------
U.S. TREASURY NOTES -- 13.3%
7.500% 10/31/99 1,515 1,552,875
7.750% 12/31/99 2,850 2,940,716
6.750% 04/30/00 6,500 6,637,864
5.750% 10/31/00 5,100 5,126,009
5.500% 12/31/00 1,200 1,199,712
6.375% 09/30/01 500 512,050
7.500% 11/15/01 1,650 1,747,564
5.875% 11/30/01 790 798,082
6.625% 04/30/02 3,625 3,757,457
5.750% 10/31/02 1,500 1,512,420
7.875% 11/15/04 1,725 1,937,623
6.500% 05/15/05 1,200 1,267,104
7.000% 07/15/06 13,050 14,254,515
------------
43,243,991
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $43,434,594) 43,489,066
------------
SHARES
---------
TEMPORARY INVESTMENTS -- 0.7%
Goldman Sachs Financial Square
Money Market Portfolio 1,125,579 1,125,579
Goldman Sachs Institutional Liquid
Assets Money Market Portfolio 1,202,262 1,202,262
J.P. Morgan Institutional Prime
Money Market Portfolio 41,346 41,346
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $2,369,187) 2,369,187
------------
TOTAL INVESTMENTS -- 100.3%
(Cost $322,622,384) 324,705,803
------------
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.3%) (1,129,666)
------------
NET ASSETS -- 100.0%
Applicable to 31,243,787 and 361,078
shares outstanding of Institutional
Class and Class A, respectively,
$.001 par value; 200,000,000
authorized shares (Note 7) $323,576,137
============
VALUE(DAGGER)
------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($319,880,453/31,243,787) $10.24
======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER CLASS A SHARE ($3,695,684/361,078) $10.24
======
- ----------
(DAGGER) See Note 2a to the Financial Statements.
* Security pledged as collateral for futures contracts.
MTN -- Medium Term Note.
IO -- Interest Only security.
PO -- Principal Only security.
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
--------- ------------
Futures Contracts -- Long Position
U.S. Treasury Notes, September 1998 115 $(13,031)
=== ========
See Notes to Financial Statements.
20
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
ASSET-BACKED SECURITIES -- 21.0%
AESOP Funding II Series 1997-1,
Class A1
6.220% 10/20/01 $2,000 $ 2,010,000
Banco Nacional de Mexico, S.A.
Series 1996-A, Class A1
6.250% 12/01/03 2,000 2,005,703
BankAmerica Manufactured Housing
Contract Series 1998-2, Class B1
7.930% 11/10/28 2,284 2,291,137
Bridgestone/Firestone Master Trust
Series 1996-1, Class A
6.170% 07/01/03 2,080 2,093,850
Capita Equipment Receivables Trust
Series 1996-1, Class A4
6.280% 06/15/00 500 502,388
Case Equipment Loan Trust
Series 1997-A, Class B
6.700% 03/15/04 750 768,311
Charming Shoppes Master Trust
Series 1997-1, Class A
6.006% 04/15/06 2,500 2,500,000
Chemical Credit Card Master Trust
Series 1995-2, Class A
6.230% 06/15/03 610 616,456
Citibank Credit Card Master Trust I
Series 1997-2, Class B
6.700% 02/15/04 1,000 1,022,706
Citibank Credit Card Master Trust I
Series 1998-1, Class A
5.750% 01/15/03 250 248,625
First Bankcard Credit Card Master Trust
Private Placement Series 1997-1, Class A
5.656% 05/15/03 1,000 999,844
First Plus Home Loan Trust
Series 1997-3, Class A6
7.080% 07/10/17 1,125 1,157,238
First USA Credit Card Master Trust
Series 1997-6, Class A
6.420% 03/17/05 150 153,155
Green Tree Financial Corp.
Series 1997-4, Class A5
6.880% 02/15/29 2,000 2,037,390
Green Tree Financial Corp.
Series 1997-7, Class A8
6.860% 08/15/29 3,445 3,530,365
Household Credit Card Master Trust I
Series 1995-1, Class A
5.826% 12/15/02 780 780,936
MBNA Corp. Series 1998-C, Class C
6.350% 11/15/05 1,250 1,250,391
Metris Master Trust Series 1997-1,
Class A
6.870% 10/20/05 3,350 3,458,662
Rental Car Funding Corp. Series 1997-1,
Class A3
6.600% 09/25/07 3,447 3,501,937
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
ASSET-BACKED SECURITIES (CONTINUED)
SBC Glacier Finance Ltd. Series
1997-1, Class A
5.848% 09/10/04 $1,500 $ 1,500,000
Standard Credit Card Master Trust
Series 1994-3, Class B
7.000% 04/07/01 400 403,506
Team Fleet Financing Corp.
Series 1997-1, Class A
7.350% 05/15/03 1,250 1,294,962
The Money Store Home Equity Trust
Series 1994-B, Class A3
7.100% 11/15/16 612 619,243
Toyota Auto Lease Trust Series 1997-A,
Class B
6.750% 04/26/04 1,500 1,518,047
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $35,783,928) 36,264,852
------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 33.9%
American Southwest Financial Securities
Corp. Series 1996-FH, Class A1
6.675% 11/25/38 80 80,913
Asset Securitization Corp. Series
1997-D4, Class PS1 IO
1.012% 04/14/29 16,271 1,227,931
Chase Commercial Mortgage Securities
Corp. Series 1997-1, Class A1
7.270% 07/19/04 2,108 2,182,011
Chase Mortgage Finance Corp.
Series 1993-0, Class A5
6.600% 12/25/09 889 898,441
Countrywide Funding Corp.
Series 1994-11, Class A12
7.204% 05/25/24 476 477,133
DLJ Mortgage Acceptance Corp.
Series 1996-M, Class A1
8.696% 11/28/11 819 842,576
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
7.315% 05/25/28 2,450 2,515,078
Federal Home Loan Mortgage Corp.
Series 1735, Class L
6.500% 06/15/24 3,198 3,160,834
Federal Home Loan Mortgage Corp.
Series 1848, Class PG
7.000% 05/15/26 4,773 4,955,223
Federal Home Loan Mortgage Corp.
Series 1865, Class PE
7.000% 07/15/26 750 778,679
Federal Home Loan Mortgage Corp.
Series 1871, Class H
7.000% 11/15/12 1,000 1,040,541
Federal Home Loan Mortgage Corp.
Series 2021, Class PQ
6.000% 09/15/23 5,696 5,617,806
Federal National Mortgage Association
Series 110, Class 2 IO
9.000% 11/25/19 2,249 565,461
See Notes to Financial Statements.
21
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Series 145, Class 1 PO
10.058% 06/25/22 $2,275 $ 1,874,046
Federal National Mortgage Association
Series 1992-216, Class ZB
7.000% 12/25/22 573 581,884
Federal National Mortgage Association
Series 1993-167, Class SL
6.923% 01/25/22 2,200 2,153,250
Federal National Mortgage Association
Series 1993-210, Class S
10.094% 11/25/23 1,145 1,065,709
Federal National Mortgage Association
Series 1993-220, Class SE
6.365% 11/25/13 4,311 4,074,158
Federal National Mortgage Association
Series 1994-30, Class H
6.250% 11/25/22 2,550 2,579,477
Federal National Mortgage Association
Series 1996-53, Class PE
6.500% 11/18/10 2,375 2,432,329
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 15,547 680,165
Federal National Mortgage Association
Series G-18, Class Z
8.750% 06/25/21 2,097 2,255,913
GE Capital Mortgage Services, Inc.
Series 1994-10, Class A23
6.500% 03/25/24 2,497 2,438,111
GE Capital Mortgage Services, Inc.
Series 1997-5, Class A2
7.500% 06/25/27 2,000 2,037,432
Merrill Lynch Mortgage Investors, Inc.
Series 1998-C2, Class A1
6.220% 02/15/30 1,159 1,167,762
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 2,100 2,117,942
PNC Mortgage Securities Corp.
Series 1997-5, Class A8
6.750% 10/25/27 2,188 2,199,573
Residential Asset Securitization Trust
Series 1997-A8, Class A3
7.000% 10/25/27 1,738 1,745,078
Residential Funding Mortgage Security I
Series 1993-S20, Class A11
7.250% 06/25/08 1,993 2,052,477
Residential Funding Mortgage Security I
Series 1996-S4, Class A13
7.250% 02/25/26 2,683 2,741,394
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $57,557,291) 58,539,327
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
MORTGAGE-BACKED SECURITIES -- 4.8%
Federal National Mortgage Association
Pool #305555
9.000% 01/01/25 $ 307 $ 323,800
Federal National Mortgage Association
Pool #359740
7.000% 10/01/26 324 328,628
Federal National Mortgage Association
Pool #364248
7.000% 01/01/27 319 324,143
Federal National Mortgage Association
Pool #364731
7.000% 12/01/26 248 251,890
Government National Mortgage
Association Pool #780167
7.000% 12/15/24 6,902 7,041,826
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $8,189,164) 8,270,287
------------
CORPORATE BONDS -- 19.3%
ELECTRIC -- 0.6%
Public Service Electric & Gas Co.
6.500% 05/01/04 1,000 1,027,500
------------
FINANCE - BANK -- 1.8%
BankBoston Corp.
7.000% 09/15/07 2,500 2,625,000
Mellon Financial Co.
6.300% 06/01/00 500 503,750
------------
3,128,750
------------
FINANCE - NON-BANK -- 3.9%
American General Institutional Capital
Securities Series A
7.570% 12/01/45 590 636,462
Associates Corp. N.A. Euro Bond
6.875% 06/20/02 355 363,431
Commercial Credit Co.
7.750% 03/01/05 210 227,850
Lehman Brothers Holdings, Inc.
8.800% 03/01/15 630 752,062
PaineWebber Group, Inc.
6.750% 02/01/06 1,000 1,020,000
PDVSA Finance, Ltd. Series 1998-1B
6.650% 02/15/06 600 591,750
Racers QHEL Series 1997, Class A-1
9.499% 05/15/17 1,050 1,063,125
Salomon Smith Barney Holdings, Inc.
5.875% 02/01/01 200 199,250
6.500% 10/15/02 200 203,250
SunAmerica Inc.
5.600% 07/31/97 480 377,400
Xerox Credit Corp. Euro Bond
5.400% 09/11/00 1,300 1,283,750
------------
6,718,330
------------
See Notes to Financial Statements.
22
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
CORPORATE BONDS (CONTINUED)
INDUSTRIAL -- 10.6%
A.H. Belo Corp.
7.250% 09/15/27 $1,500 $ 1,590,000
Air Products & Chemicals, Inc.
6.862% 10/25/03 2,250 2,320,313
Boston University
7.625% 07/15/97 410 468,425
Dayton-Hudson Corp.
9.750% 11/01/98 500 505,260
Ford Motor Co.
7.400% 11/01/46 1,055 1,171,050
General Motors Corp.
6.750% 05/01/28 830 841,413
Hertz Corp.
6.500% 04/01/00 500 503,750
Honeywell, Inc.
7.350% 05/15/00 200 205,250
International Business Machines Corp.
6.500% 01/15/28 1,720 1,722,150
James River Corp.
6.700% 11/15/03 2,000 2,035,000
Procter & Gamble Co. Euro Bond
9.625% 01/14/01 400 436,000
Sears, Roebuck Acceptance Corp.
6.020% 02/20/03 1,350 1,339,875
Sony Corp.
6.125% 03/04/03 2,210 2,223,813
Wal-Mart Stores, Inc.
9.100% 07/15/00 100 106,125
Wal-Mart Stores, Inc. Euro Bond
6.750% 05/24/02 125 128,125
Walt Disney Co.
6.375% 03/30/01 500 507,500
Xerox Capital Trust I
8.000% 02/01/27 810 884,925
Xerox Corp. Euro Bond
5.750% 07/21/00 1,310 1,306,725
------------
18,295,699
------------
OTHER UTILITIES -- 0.1%
KN Energy, Inc.
6.450% 03/01/03 130 131,300
------------
TELEPHONES -- 1.3%
BellSouth Telecommunications, Inc.
7.625% 05/15/35 215 227,900
New England Telephone &
Telegraph Co.
7.875% 11/15/29 1,720 2,061,850
------------
2,289,750
------------
TRANSPORTATION -- 1.0%
CSX Corp.
7.250% 05/01/27 1,610 1,726,725
------------
TOTAL CORPORATE BONDS
(Cost $32,510,501) 33,318,054
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
INTERNATIONAL BONDS -- 0.4%
Telstra Corp. Ltd. Euro Bond
(Cost $745,238)
6.500% 11/28/05 $ 750 $ 767,813
------------
SUPRANATIONAL BONDS -- 1.2%
African Development Bank
(Cost $2,063,146)
7.750% 12/15/01 2,000 2,117,500
------------
YANKEE BONDS -- 3.7%
Banco Santiago S.A.
7.000% 07/18/07 1,610 1,485,225
Cable & Wireless Communications
Notes
6.625% 03/06/05 465 470,231
Empresa Nacional Electric
7.750% 07/15/08 1,700 1,695,750
Export-Import Bank Korea
6.500% 11/15/06 240 189,900
Glaxo Wellcome P.L.C. Euro Bond
6.125% 01/25/06 550 555,500
Hydro-Quebec
8.050% 07/07/24 220 262,625
Korea Development Bank
7.375% 09/17/04 1,045 843,838
Korea Electric Power Global
6.375% 12/01/03 605 481,731
United Utilities P.L.C.
6.450% 04/01/08 500 503,750
------------
TOTAL YANKEE BONDS
(Cost $6,882,176) 6,488,550
------------
U.S. TREASURY OBLIGATIONS -- 6.8%
U.S. TREASURY BILLS* -- 0.2%
5.010% 10/01/98 350 345,555
------------
U.S. TREASURY BONDS -- 0.2%
8.875% 08/15/17 218 297,005
------------
U.S. TREASURY NOTES -- 6.4%
4.750% 10/31/98 500 498,980
5.500% 04/15/00 1,700 1,700,986
6.500% 05/31/01 500 512,865
7.500% 11/15/01 510 540,156
6.500% 05/15/05 600 633,552
7.000% 07/15/06 6,545 7,149,104
------------
11,035,643
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $11,651,389) 11,678,203
------------
See Notes to Financial Statements.
23
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
MUNICIPAL BONDS -- 1.7%
Massachusetts State Turnpike Authority
Metropolitan Highway System
Revenue Bonds Series A
5.000% 01/01/37 $1,600 $ 1,539,248
New York City Municipal Water Financing
Authority Revenue Bonds Series B
5.250% 06/15/29 1,405 1,405,000
------------
TOTAL MUNICIPAL BONDS
(Cost $2,902,602) 2,944,248
------------
COMMERCIAL PAPER -- 2.8%
Comdisco, Inc.
(Cost $4,795,432)
5.710% 07/07/98 4,800 4,795,432
------------
SHARES
----------
TEMPORARY INVESTMENTS -- 4.2%
Goldman Sachs Financial Square
Money Market Portfolio 1,625,215 1,625,215
Goldman Sachs Institutional Liquid
Assets Money Market Portfolio 5,550,986 5,550,986
J.P. Morgan Institutional Prime
Money Market Portfolio 44,114 44,114
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $7,220,315) 7,220,315
------------
TOTAL INVESTMENTS -- 99.8%
(Cost $170,301,182) 172,404,581
------------
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2% 416,095
------------
NET ASSETS -- 100.0%
Applicable to 16,675,583 and 166,832
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 7) $172,820,676
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($171,108,807/16,675,583) $10.26
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($1,711,869/166,832) $10.26
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Security pledged as collateral for futures contracts.
IO - Interest Only Security.
PO - Principal Only Security.
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
---------- ------------
Futures Contracts - Long Position
U.S. Treasury Notes, September 1998 20 $ (2,219)
U.S. Treasury Bonds, September 1998 75 (9,375)
--- --------
Total Futures Contracts 95 $(11,594)
=== ========
See Notes to Financial Statements.
24
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
AGENCY OBLIGATIONS -- 27.9%
AID - Israel Guaranteed Notes
6.050% 08/15/00 $ 1,40 $ 1,412,250
Banco Vivienda del Peru
9.980% 08/01/08 3,150 3,622,500
Federal Farm Credit Bank
7.170% 04/25/02 3,500 3,671,710
Federal Home Loan Bank
6.040% 06/21/00 2,450 2,467,542
Federal Home Loan Mortgage Corp.
7.010% 07/11/07 850 879,367
Federal National Mortgage Association
6.375% 10/13/00 1,500 1,501,470
5.625% 03/15/01 3,000 2,998,590
Honduras Aid
13.000% 06/01/01 1,268 1,389,697
Private Export Funding Corp.
9.450% 12/31/99 5,000 5,268,750
7.030% 10/31/03 1,650 1,746,937
Small Business Administration
Participation Certificates,
Series 1995-20J, Class 1
6.850% 10/01/15 2,773 2,874,532
Small Business Administration
Participation Certificates,
Series 1997-10C, Class 1
6.950% 05/01/07 1,482 1,525,993
------------
TOTAL AGENCY OBLIGATIONS
(Cost $28,835,477) 29,359,338
------------
ASSET-BACKED SECURITIES -- 7.7%
BankBoston Marine Asset Backed Trust
Series 1997-2, Class A3
6.320% 03/15/06 1,600 1,601,440
Contimortgage Home Equity Loan Trust
Series 1998-2 A5
6.280% 09/15/16 2,500 2,502,344
Green Tree Home Equity Loan Trust
Series 1998-A, Class A5 IO
8.000% 06/15/29 10,000 1,925,000
Metris Master Trust Series 1997-1,
Class A
6.870% 10/20/05 2,000 2,064,873
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $8,059,978) 8,093,657
------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 14.9%
DLJ Mortgage Acceptance Corp. Series
1998-A, Class A2
7.315% 05/25/28 1,985 2,037,726
Federal National Mortgage Association
Series 1990-96, Class E
9.670% 01/25/17 600 613,686
Federal National Mortgage Association
Series 1992-29, Class A
6.400% 09/25/14 301 299,900
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Series 1993-167, Class SL
6.923% 01/25/22 $1,390 $ 1,360,462
Federal National Mortgage Association
Series 1996-M4, Class A
7.750% 03/17/17 1,851 1,881,911
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 10,484 458,680
Federal National Mortgage Association
Series 1997-M2, Class A
7.350% 09/17/03 3,089 3,197,257
Federal National Mortgage Association
Series 1997-M5, Class C
6.740% 08/25/07 3,000 3,015,000
Federal National Mortgage Association
Series 1998-M2, Class CP1 IO
0.946% 02/25/02 51,375 1,605,469
Residential Funding Mortgage Security I
Series 1996-S4, Class A13
7.250% 02/25/26 1,219 1,246,088
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $15,849,504) 15,716,179
------------
MORTGAGE-BACKED SECURITIES -- 21.3%
Federal Home Loan Mortgage Corp.
Pool #W10002
6.775% 11/01/03 2,320 2,393,950
Federal Home Loan Mortgage Corp.
Pool #865008
8.454% 02/01/18 49 51,261
Federal National Mortgage Association
Pool #8217
11.000% 12/01/15 1,453 1,618,714
Federal National Mortgage Association
Pool #73738
6.825% 11/01/01 3,748 3,875,748
Federal National Mortgage Association
Pool #73755
6.890% 01/01/02 2,881 2,953,137
Federal National Mortgage Association
Pool #303724
6.000% 01/01/11 3,263 3,258,523
Federal National Mortgage Association
Pool #375255
6.920% 07/01/04 992 1,035,427
Government National Mortgage
Association Pool #8720
7.000% 10/20/25 361 368,072
Government National Mortgage
Association Pool #162989
9.000% 05/15/16 16 17,931
Government National Mortgage
Association Pool #227125
9.000% 07/15/17 114 123,778
Government National Mortgage
Association Pool #346458
8.000% 03/15/23 240 250,565
See Notes to Financial Statements.
25
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Government National Mortgage
Association Pool #352110
7.000% 08/15/23 $3,068 $ 3,135,435
Government National Mortgage
Association Pool #780389
9.000% 08/15/09 3,051 3,325,026
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $21,643,906) 22,407,567
------------
CORPORATE BONDS -- 3.9%
Rowan Cos.
(Cost $4,100,000)
6.150% 07/01/10 4,100 4,103,280
------------
U.S. TREASURY OBLIGATIONS -- 20.2%
U.S. TREASURY BILLS* -- 0.3%
5.010% 10/01/98 250 246,825
------------
U.S. TREASURY BONDS -- 7.8%
8.875% 08/15/17 2,659 3,622,648
8.750% 08/15/20 3,000 4,122,960
6.750% 08/15/26 400 457,860
------------
8,203,468
------------
U.S. TREASURY NOTES -- 12.1%
5.875% 08/31/99 400 401,680
5.875% 11/15/99 3,000 3,014,430
5.500% 12/31/00 5,000 4,998,800
6.375% 09/30/01 500 512,050
5.875% 11/30/01 1,300 1,313,299
7.000% 07/15/06 2,300 2,512,290
------------
12,752,549
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $20,973,340) 21,202,842
------------
SHARES VALUE(DAGGER)
--------- ------------
TEMPORARY INVESTMENTS -- 2.6%
Goldman Sachs Financial Square
Treasury Obligation Portfolio
(Cost $2,753,441) 2,753,441 $ 2,753,441
------------
TOTAL INVESTMENTS -- 98.5%
(Cost $102,215,646) 103,636,304
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.5% 1,603,421
------------
NET ASSETS -- 100.0%
Applicable to 6,299,959 and 66,181
shares of beneficial interest
outstanding of Institutional Class
and Class A, respectively, $.001 par
value (Note 7) $105,239,725
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($104,145,655/6,299,959) $16.53
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($1,094,070/66,181) $16.53
======
- ----------
(DAGGER) See Note 2a to the Financial Statements.
* Security pledged as collateral for futures contracts.
IO -- Interest Only security.
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
--------- ------------
Futures Contracts -- Long Position
U.S. Treasury Notes, September 1998 52 $(6,219)
U.S. Treasury Bonds, September 1998 28 (3,500)
--- -------
Total Futures Contracts 80 $(9,719)
=== =======
See Notes to Financial Statements.
26
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ ------------
MUNICIPAL BONDS -- 95.0%
ARIZONA -- 3.4%
Salt River Project, Arizona, Agriculture
& Improvement District Revenue
Bonds Series B
6.500% 01/01/04 $6,050 $ 6,745,750
------------
CALIFORNIA -- 6.9%
Central Coast Water Authority, California
Revenue Bonds (State Water
Project Regional Facilities)
6.500% 10/01/14 6,000 6,675,000
Metropolitan Water District, Southern
California Waterworks Revenue
Bonds Series C
5.250% 07/01/15 4,000 4,080,000
Redding, California, Joint Powers
Financing Authority Electric System
Revenue Bonds Series A
5.250% 06/01/15 3,000 3,063,750
------------
13,818,750
------------
COLORADO -- 1.7%
Denver, Colorado, City & County
Airport Revenue Bonds Series A
7.500% 11/15/06 3,000 3,457,500
------------
CONNECTICUT -- 1.5%
Connecticut State Clean Water
Revenue Bonds
5.250% 03/01/15 3,000 3,060,000
------------
DELAWARE -- 1.9%
Delaware State General Obligation
Bonds
6.125% 04/01/01 3,700 3,903,500
------------
FLORIDA -- 7.9%
Broward County, Florida, School
Board Certificates of Participation
Revenue Bonds Series C
5.750% 07/01/05 4,615 5,001,506
Florida State Department of
Transportation-Right of Way General
Obligation Bond Series B
5.000% 07/01/15 5,105 5,085,856
Gainesville, Florida, Utilities System
Revenue Bonds Series A
5.750% 10/01/07 1,500 1,644,375
Inland Protection Financing Corp.,
Florida, Special Obligation
Revenue Bonds
5.000% 07/01/02 4,000 4,140,000
------------
15,871,737
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ ------------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS -- 2.2%
Chicago, Illinois, Metropolitan Water
Reclamation District-Greater
Chicago Capital Improvement
General Obligation Bonds
6.050% 12/01/09 $1,000 $ 1,132,500
6.300% 12/01/09 1,000 1,122,500
Illinois Health Facilities Authority,
Trinity Medical Center Revenue
Bonds
7.000% 07/01/12 2,000 2,225,000
------------
4,480,000
------------
INDIANA -- 3.8%
Indiana Health Facility Financing
Authority Hospital Revenue
Bonds (Clarian Health Partners)
Series A
6.000% 02/15/05 4,000 4,330,000
Indiana Municipal Power Agency,
Power Supply System Revenue
Bonds Series B
6.000% 01/01/11 3,000 3,345,000
------------
7,675,000
------------
KANSAS -- 1.5%
Kansas State Department of
Transportation Highway
Revenue Bonds
7.250% 03/01/04 2,555 2,954,219
------------
LOUISIANA -- 3.0%
Louisiana State General Obligation
Bonds
7.750% 08/01/06 5,000 6,118,750
------------
MARYLAND -- 2.6%
Maryland State & Local Facility General
Obligation Bonds Series 2
5.000% 08/01/06 5,000 5,237,500
------------
MASSACHUSETTS -- 2.9%
Massachusetts State Water Resources
Authority Revenue Bonds Series A
5.500% 07/15/22 3,000 3,153,750
Massachusetts State Health &
Educational Facilities Authority
Revenue Bonds (Northeastern
University) Series D
7.125% 10/01/10 1,500 1,621,875
Southbridge, Massachusetts,
General Obligation Bonds
6.375% 01/01/12 1,000 1,083,750
------------
5,859,375
------------
See Notes to Financial Statements.
27
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ ------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN -- 5.1%
Chippewa County, Michigan, Hospital
Finance Revenue Bonds (Chippewa
County War Memorial Hospital)
Series A
5.000% 11/01/04 $1,075 $ 1,087,094
Chippewa County, Michigan, Hospital
Finance Revenue Bonds (Chippewa
County War Memorial Hospital)
Series B
5.000% 11/01/04 2,140 2,164,075
Detroit, Michigan, Water Supply System
Revenue Bonds Series A
5.300% 07/01/09 1,000 1,057,500
Michigan State Hospital Finance
Authority Revenue Bonds
(Chelsea Community Hospital)
5.000% 05/15/12 3,630 3,525,637
Oakland University, Michigan,
Revenue Bonds
5.000% 05/15/10 1,180 1,212,450
5.100% 05/15/11 1,175 1,207,312
------------
10,254,068
------------
MISSISSIPPI -- 1.6%
Mississippi River Bridge Authority
Revenue Bonds
6.750% 11/01/12 3,000 3,303,750
------------
MISSOURI -- 2.5%
Kansas City, Missouri, General Obligation
Bonds (Streetlight Project) Series B
5.000% 02/01/14 1,990 1,997,462
Missouri State Regional Convention &
Sports Complex Authority Revenue
Bonds Series A
6.900% 08/15/21 2,750 3,093,750
------------
5,091,212
------------
MONTANA -- 2.5%
Forsyth, Montana, Pollution Control
Revenue Bonds (Portland General
Electric Co. Project) Series A 1983
4.600% 05/01/33 5,000 5,037,500
------------
NEBRASKA -- 0.5%
Omaha, Nebraska, General
Obligation Bonds
5.125% 12/01/99 1,070 1,092,738
------------
NEW JERSEY -- 2.8%
New Jersey State Highway Authority,
Garden State Parkway General
Revenue Bonds
6.200% 01/01/10 5,000 5,718,750
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ ------------
MUNICIPAL BONDS (CONTINUED)
NEW YORK -- 6.2%
New York City General Obligation
Bonds Series H
6.000% 08/01/10 $3,000 $ 3,273,750
New York State Dormitory Authority
Revenue Bonds (FHA-Hospital &
Nursing Home) Series A
4.500% 08/15/00 1,720 1,737,200
4.750% 08/15/01 1,785 1,818,469
New York State General Obligation
Bonds Series B
6.375% 08/15/00 3,750 3,937,500
Westchester County, New York,
General Obligation Bonds Series D
4.625% 11/15/10 1,600 1,612,000
------------
12,378,919
------------
OHIO -- 1.4%
Warren, Ohio, Hospital Revenue Bonds
(Warren General Hospital Project)
Series B
7.300% 11/15/14 2,325 2,711,531
------------
SOUTH CAROLINA -- 2.9%
Charleston, South Carolina, Waterworks
& Sewer Revenue Bonds
6.000% 01/01/12 2,900 3,081,250
South Carolina State Capital
Improvement General Obligation
Bonds Series V
6.500% 02/01/00 2,635 2,726,171
------------
5,807,421
------------
TENNESSEE -- 3.0%
Tennessee State General Obligation
Bonds
5.000% 05/01/08 5,700 5,985,000
------------
TEXAS -- 11.4%
Bexar County, Texas, Detention Facilities
General Obligation Bonds
7.250% 06/15/04 1,000 1,156,250
Brazos River Authority, Texas, Pollution
Control Revenue Bonds (Texas
Utilities Electric Co.) Series B
4.150% 06/01/30 5,000 5,000,000
Garland, Texas, General Obligation
Bonds
5.500% 02/15/06 1,000 1,076,250
North Forest, Texas, Independent School
District General Obligation Bonds
5.500% 08/15/07 1,320 1,420,650
Rockwall, Texas, Independent School
District General Obligation Bonds
4.600% 08/15/07 2,005 2,002,494
Texas State Public Finance Authority
General Obligation Bonds Series B
7.000% 10/01/02 1,000 1,038,750
See Notes to Financial Statements.
28
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ ------------
MUNICIPAL BONDS (CONTINUED)
TEXAS (CONTINUED)
University of Texas Revenue Bonds
5.000% 07/01/16 $5,000 $ 5,006,250
University of Texas Revenue Bonds
Financing System Series B
6.000% 08/15/06 3,540 3,933,825
West Central Texas Municipal Water
District Revenue Bonds, Water
Transmission Line Contract
6.750% 11/01/03 2,000 2,240,000
------------
22,874,469
------------
UTAH -- 6.2%
Jordan, Utah, School District General
Obligation Bonds
5.000% 06/15/01 1,670 1,720,100
Salt Lake County, Utah, General
Obligation Bonds
4.250% 12/15/04 5,480 5,493,700
Utah State General Obligation
Bonds
6.000% 07/01/01 5,000 5,281,250
------------
12,495,050
------------
VIRGINIA -- 6.2%
Metropolitan Washington, D.C. Airports
Authority, Virginia, General Airport
Revenue Bonds Series B
4.750% 10/01/11 3,685 3,666,575
Virginia Commonwealth Transportation
Board Revenue Bonds, Northern
Virginia Transportation District PG-B
5.000% 05/15/15 3,310 3,289,313
Virginia State General Obligation Bonds
6.000% 06/01/03 5,000 5,412,500
------------
12,368,388
------------
WASHINGTON -- 1.6%
Washington State Motor Vehicle Fuel Tax
General Obligation Bonds Series F
5.300% 07/01/13 1,000 1,033,750
Washington State Public Power Supply
System Nuclear Project No. 2
Revenue Bonds
5.750% 07/01/09 2,000 2,172,500
------------
3,206,250
------------
WISCONSIN -- 1.8%
Hartford, Wisconsin, Sewer System
Revenue Bonds
4.750% 04/01/03 1,225 1,229,594
Wisconsin State Transportation
Revenue Bonds Series A
7.500% 07/01/04 2,000 2,337,500
------------
3,567,094
------------
TOTAL MUNICIPAL BONDS
(Cost $187,425,803) 191,074,221
------------
SHARES VALUE(DAGGER)
--------- ------------
TEMPORARY INVESTMENTS -- 4.9%
Federated Tax-Free Obligation Fund 7,149,278 $ 7,149,278
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 2,809,849 2,809,849
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $9,959,127) 9,959,127
------------
TOTAL INVESTMENTS -- 99.9%
(Cost $197,384,930) 201,033,348
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.1% 158,029
------------
NET ASSETS -- 100.0%
Applicable to 18,703,817 and 66,828
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 7) $201,191,377
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($200,475,108/18,703,817) $10.72
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($716,269/66,828) $10.72
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
See Notes to Financial Statements.
29
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ ------------
MUNICIPAL BONDS -- 98.9%
ARIZONA -- 2.0%
Maricopa County, Arizona, Hospital
Revenue Bonds
6.125% 04/01/18 $1,250 $ 1,328,125
Maricopa County, Arizona, Industrial
Development Authority Multi-Family
Housing Revenue Bonds (Advantage
Electric Projects) Series A
6.500% 07/01/16 1,900 2,182,625
------------
3,510,750
------------
CALIFORNIA -- 3.8%
Central Coast Water Authority, California
Revenue Bonds (State Water Project
Regional Facilities)
6.500% 10/01/14 5,900 6,563,750
------------
COLORADO -- 0.6%
Colorado Springs, Colorado, Utilities
Revenue Bonds Unrefunded Balance
Series A
6.500% 11/15/15 1,000 1,086,250
------------
CONNECTICUT -- 1.7%
Connecticut State General Obligation
Bonds Series B
6.000% 11/15/01 2,725 2,902,125
------------
DISTRICT OF COLUMBIA -- 1.7%
District of Columbia Revenue Bonds
(Georgetown University) Series C
4.950% 04/01/10 2,845 2,912,569
------------
FLORIDA -- 5.9%
Gainesville, Florida, Utilities System
Revenue Bonds Series A
5.200% 10/01/22 4,990 4,990,000
Inland Protection Financing Corp.,
Florida, Special Obligation
Revenue Bonds
5.000% 07/01/02 4,000 4,140,000
Orlando, Florida, Utilities Commission
Water & Electric Revenue Bonds
Series D
6.750% 10/01/17 1,000 1,210,000
------------
10,340,000
------------
GEORGIA -- 4.1%
Atlanta, Georgia, Airport Facilities
Revenue Bonds
6.000% 01/01/07 2,000 2,215,000
Georgia State General Obligation
Bonds Series C
7.250% 07/01/02 1,500 1,672,500
Metropolitan Atlanta Rapid
Transportation Authority, Georgia
Sales Tax Revenue Bonds Series N
6.200% 07/01/10 2,890 3,309,050
------------
7,196,550
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ ------------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS -- 8.8%
De Kalb & Kane Counties, Illinois,
Community United School District
No. 427 General Obligation Bonds
5.500% 01/01/11 $1,325 $ 1,417,750
5.550% 01/01/12 1,125 1,205,156
Illinois Development Finance Authority
Revenue Bonds (School District
No. U46 Project)
9.000% 01/01/07 3,250 4,298,125
Illinois Development Finance Authority
Revenue Bonds (School District
PG - Rockford School No. 205)
6.650% 02/01/11 4,000 4,725,000
Illinois Educational Facilities Authority
Revenue Bonds (Shedd Aquarium
Society)
5.350% 07/01/13 1,270 1,312,862
5.400% 07/01/14 1,240 1,281,850
Illinois State Sales Tax Revenue
Bonds Series V
6.375% 06/15/20 1,000 1,120,000
------------
15,360,743
------------
INDIANA -- 4.1%
Indiana Municipal Power Agency,
Power Supply System Revenue
Bonds Series B
6.000% 01/01/11 6,455 7,197,325
------------
KENTUCKY -- 1.2%
Kentucky Economic Development
Finance Authority Hospital Facilities
Revenue Bonds (Pikeville United
Methodist Hospital)
5.700% 02/01/28 2,000 2,082,500
------------
MICHIGAN -- 18.9%
Chelsea, Michigan, Economic
Development Corp. Limited Obligation
Revenue Bonds (United Methodist
Retirement Communities)
5.400% 11/15/27 4,415 4,332,219
Detroit, Michigan, Water Supply
System Revenue Bonds
6.500% 07/01/15 1,000 1,191,250
East Grand Rapids, Michigan,
Public School District General
Obligation Bonds
5.000% 05/01/16 2,500 2,481,250
Flint, Michigan, Hospital Building
Authority Revenue Bonds (Hurley
Medical Center) Series B
5.375% 07/01/28 1,350 1,328,062
Kent County, Michigan, Refuse Disposal
Systems General Obligation Bonds
Series A
5.000% 11/01/06 4,105 4,284,594
See Notes to Financial Statements.
30
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ ------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
Michigan State Hospital Finance
Authority Revenue Bonds
(Chelsea Community Hospital)
5.375% 05/15/19 $3,000 $ 2,973,750
Michigan State Trunk Line Revenue
Bonds Series A
5.250% 11/15/04 2,460 2,598,375
Oakland County, Michigan, Economic
Development Corp. Limited Obligation
Revenue Bonds (Cranbrook
Educational Community) Series C
6.900% 11/01/14 2,725 3,140,562
Pinckney, Michigan, Community
Schools General Obligation Bonds
5.500% 05/01/27 6,500 6,695,000
Plymouth-Canton, Michigan,
Community School District General
Obligation Bonds Series C
6.500% 05/01/16 1,000 1,088,750
Royal Oak, Michigan, Hospital
Finance Authority Revenue Bonds
(William Beaumont Hospital)
5.500% 01/01/18 2,825 2,888,562
------------
33,002,374
------------
MISSISSIPPI -- 1.9%
Mississippi River Bridge Authority
Revenue Bonds
6.750% 11/01/12 3,000 3,303,750
------------
MONTANA -- 2.9%
Forsyth, Montana, Pollution Control
Revenue Bonds (Portland General
Electric Co. Project) Series A 1983
4.600% 05/01/33 5,000 5,037,500
------------
NEW JERSEY -- 1.3%
New Jersey State Highway Authority,
Garden State Parkway General
Revenue Bonds
6.200% 01/01/10 2,000 2,287,500
------------
NEW YORK -- 6.8%
New York City General Obligation
Bonds Series H
6.000% 08/01/13 3,500 3,780,000
New York City Municipal Water Finance
Authority, Water & Sewer System
Revenue Bonds Series A
5.625% 06/15/19 3,000 3,120,000
New York City, New York, Transitional
Finance Authority Revenue Bonds
(Future Tax Secured) Series A
5.000% 08/15/27 1,775 1,721,750
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ ------------
MUNICIPAL BONDS (CONTINUED)
NEW YORK (CONTINUED)
Port Authority of New York & New
Jersey Consolidated Series One
Hundred Revenue Bonds
5.625% 10/15/17 $3,175 $ 3,341,688
------------
11,963,438
------------
OHIO -- 0.6%
Ohio State Higher Educational
Facilities Community Revenue Bonds
(Denison University Project)
5.350% 11/01/10 1,000 1,045,000
------------
TENNESSEE -- 6.9%
Humphreys County, Tennessee,
Industrial Development, Solid Waste
Disposal Revenue Bonds (E. I. du Pont
de Nemours & Co. Project)
6.700% 05/01/24 7,000 7,743,750
Tennessee State General Obligation
Bonds
5.500% 05/01/27 4,180 4,368,100
------------
12,111,850
------------
TEXAS -- 12.8%
Dallas, Texas, General Obligation Bonds
6.000% 02/15/03 2,320 2,505,600
Dallas-Fort Worth, Texas, International
Airport Facility Improvements Corp.
Revenue Bonds (United Parcel
Services Inc.)
6.600% 05/01/32 4,000 4,325,000
Gulf Coast Waste Disposal Authority,
Texas, Revenue Bonds (Champion
International) Series A
6.875% 12/01/28 8,000 8,800,000
Harris County, Texas, Criminal Justice
Center General Obligation Bonds
5.500% 10/01/12 2,540 2,676,525
La Joya, Texas, Independent School
District General Obligation Bonds
5.000% 02/15/16 2,000 1,977,500
North Texas Health Facilities
Development Corp. Revenue Bonds
(United Regulatory Health Care
System Income Project)
5.000% 09/01/09 1,000 1,030,000
5.000% 09/01/10 1,000 1,012,500
------------
22,327,125
------------
VERMONT -- 1.5%
Vermont Educational & Health Buildings
Financing Agency Revenue Bonds
(Middlebury College Project)
5.500% 11/01/16 2,550 2,629,688
------------
See Notes to Financial Statements.
31
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ ------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA -- 5.5%
Metropolitan Washington, D.C. Airports
Authority, Virginia, General Airport
Revenue Bonds Series B
5.000% 10/01/28 $5,000 $ 4,781,250
Norfolk, Virginia, Water Revenue Bonds
5.875% 11/01/15 2,400 2,580,000
Richmond, Virginia, General Obligation
Bonds Series B
6.500% 07/15/02 2,160 2,346,300
------------
9,707,550
------------
WASHINGTON -- 2.9%
Washington State Public Power
Supply System Nuclear Project
No. 1 Revenue Bonds Series B
5.700% 07/01/10 1,000 1,068,750
Washington State Public Power
Supply System Nuclear Project
No. 3 Revenue Bonds Series A
5.250% 07/01/17 4,000 4,055,000
------------
5,123,750
------------
WISCONSIN -- 3.0%
Wisconsin State General Obligation
Bonds Series 3
5.250% 11/01/10 5,000 5,300,000
------------
TOTAL MUNICIPAL BONDS
(Cost $165,968,540) 172,992,087
------------
SHARES VALUE(DAGGER)
--------- ------------
TEMPORARY INVESTMENTS -- 0.9%
Federated Tax-Free Obligation Fund 267,602 $ 267,602
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 1,290,153 1,290,153
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $1,557,755) 1,557,755
------------
TOTAL INVESTMENTS -- 99.8%
(Cost $167,526,295) 174,549,842
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.2% 307,209
------------
NET ASSETS -- 100.0%
Applicable to 16,576,160 and 68,212
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 7) $174,857,051
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($174,140,456/16,576,160) $10.51
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($716,595/68,212) $10.51
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
See Notes to Financial Statements.
32
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK -- 4.8%
BUSINESS SERVICES -- 0.0%
Olsten Corp. 1 $ 11
-----------
DRUGS -- 0.7%
Dura Pharmaceuticals, Inc.* 17,500 391,563
-----------
ELECTRIC & GAS -- 1.0%
Texas Utilities Co. 12,973 540,001
-----------
MISCELLANEOUS FINANCE -- 1.5%
Excel Legacy Corp.* 23,983 104,926
Excel Realty Trust, Inc. 23,983 691,010
-----------
795,936
-----------
OIL & GAS -- 0.6%
Ultramar Diamond Shamrock Corp. 10,200 321,938
-----------
THRIFT INSTITUTIONS -- 1.0%
Sovereign Bancorp, Inc. 35,201 574,216
-----------
TOTAL COMMON STOCK
(Cost $2,211,590) 2,623,665
-----------
CONVERTIBLE PREFERRED STOCK -- 56.0%
AUTO RELATED -- 0.5%
Fleetwood Capital Trust, 6.000%, 02/15/28,
Series 144A 5,000 263,750
-----------
BANKS -- 2.6%
CNB Capital Trust I, 6.000%, 06/30/28* 40,000 1,050,000
National Australia Bank Ltd., 7.875%,
Series UNIT 13,500 387,281
-----------
1,437,281
-----------
BUSINESS SERVICES -- 0.4%
Central Parking Finance Trust, 7.875%,
Series 144A 10,000 247,500
-----------
CHEMICALS -- 1.4%
Corning Delaware LP, 6.000% 12,950 731,675
-----------
CONSTRUCTION -- 1.4%
Owens Corning Capital, 6.500%, 05/10/25 14,700 780,937
-----------
CONTAINERS -- 1.6%
Owens - Illinois, Inc., 4.750%* 15,000 781,875
Sealed Air Corp., $2.00, 04/01/18,
Series A 2,500 105,000
-----------
886,875
-----------
DRUGS -- 0.6%
DECS Trust III, Inc., 8.750%, 02/15/01 17,000 348,500
-----------
ELECTRIC & GAS -- 3.2%
Citizens Utilities Trust, 5.000%, 01/08/36 14,800 699,300
Houston Industries, Inc., 7.000%, 07/01/00 14,000 1,043,000
-----------
1,742,300
-----------
SHARES VALUE(DAGGER)
--------- ------------
CONVERTIBLE PREFERRED STOCK (CONTINUED)
ELECTRONICS -- 3.2%
Echostar Communications Corp., 6.750%,
Series C 20,000 $ 1,170,000
Merrill Lynch & Co., Inc., 7.875%, 02/01/01,
Series "CBR" STRYPES 4,750 332,500
Sensormatic Electronics Corp., 6.500%,
Series 144A* 10,000 238,750
-----------
1,741,250
-----------
FOOD & BEVERAGES -- 4.1%
Ralston Purina Co., 7.000%, 08/01/00 31,250 1,984,375
Suiza Capital Trust II, 5.500%, 04/01/28,
Series 144A* 5,000 248,750
-----------
2,233,125
-----------
FOREST PRODUCTS & PAPER -- 0.5%
International Paper Capital Trust, 5.250% 5,000 245,000
-----------
HEALTH CARE SERVICES -- 1.1%
Healthcare Financial Partners, Series 144A* 2,500 252,500
Laboratory Corp. of America, 8.500%,
06/30/12, Series A 5,000 270,000
Medpartners, Inc., 6.500%, 08/31/00 5,000 52,812
-----------
575,312
-----------
HOTELS & RESTAURANTS -- 3.4%
Felcor Suite Hotels, Inc., $1.95, Series A 15,000 363,750
Hilton Hotels Corp., 8.000%, 10/03/99 39,100 1,026,375
Innkeepers USA Trust, 8.625%,
Series 144A 20,000 447,500
-----------
1,837,625
-----------
INSURANCE -- 4.9%
Aetna, Inc., 6.250%, 07/19/00 2,000 150,250
American General, 6.000%, 05/31/25,
Series A 9,800 884,450
American Heritage Life Investment Corp.,
8.500%, 08/15/00 2,500 162,500
Conseco Finance Trust IV, 7.000%, 02/16/01,
Series F 15,000 795,000
Philadelphia Consolidated Holding Corp.,
7.000%, 05/16/01* 30,000 307,500
St. Paul Capital, Inc., 6.000%, 05/31/25 4,900 352,800
-----------
2,652,500
-----------
LEISURE -- 0.8%
Mattel, Inc., $.4125, 07/01/00, Series C 24,000 418,500
-----------
MACHINERY & EQUIPMENT -- 1.8%
Breed Technologies Inc. Capital Trust,
6.500%, 11/15/27, Series 144A 15,000 630,000
Cooper Industries, Inc., 6.000%, 01/01/99 18,500 326,062
-----------
956,062
-----------
See Notes to Financial Statements.
33
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
CONVERTIBLE PREFERRED STOCK (CONTINUED)
MEDIA -- 5.5%
Chancellor Media Corp., $3.00 5,000 $ 510,000
Merrill Lynch & Co., Inc., 6.250%, 07/01/01,
Series "I.G.L." STRYPES 16,800 529,200
Sinclair Broadcasting Group, Inc., 6.000% 9,500 665,000
Snyder Communications, Inc., 6.500%,
11/15/00, STRYPES 20,000 786,250
Triathlon Broadcasting Co., 9.000%, 06/30/00 48,500 472,875
-----------
2,963,325
-----------
MISCELLANEOUS FINANCE -- 8.4%
Crescent Real Estate Equities Co., 6.750% 10,000 224,375
Equity Residential Properties Trust, 7.250%,
Series G 20,000 485,000
Merrill Lynch & Co., Inc., 7.250%, 06/15/99,
Series "SAI" STRYPES 5,000 362,500
Penncorp Financial Group, Inc., $3.375 14,700 764,400
Reckson Associates Realty Corp., 7.625%,
Series A 13,000 306,312
Rouse Co., $3.00, Series B 15,000 746,250
Security Capital Pacific Trust, $1.75,
Series A 31,700 954,963
The Money Store, Inc., $1.72, 12/01/99 15,000 468,750
U.S. Restaurant Properties, Inc., 7.720%,
Series A 10,000 272,500
-----------
4,585,050
-----------
OFFICE EQUIPMENT -- 0.9%
Microsoft Corp., $2.196, 12/15/99, Series A 5,000 475,000
-----------
OIL & GAS -- 2.2%
Enron Corp., 6.250%, 12/13/98 20,000 400,000
EVI, Inc., 5.000%, 11/01/27, Series 144A 20,000 815,000
-----------
1,215,000
-----------
RAILROADS -- 0.8%
Union Pacific Capital Trust, 6.250%, 04/01/28,
Series 144A 10,000 458,750
-----------
RETAIL -- 1.1%
Dollar General STRYPES Trust, 8.500%,
05/15/01* 15,000 589,688
-----------
TELEPHONES -- 2.2%
IXC Communications, Inc., 7.250%, 03/31/07,
Series 144A 2,041 433,713
Qualcomm Financial Trust, 5.750%, 03/01/12 5,000 235,000
Salomon Smith Barney Holdings, 6.250%,
02/01/01, Series CSN 9,800 548,188
-----------
1,216,901
-----------
THRIFT INSTITUTIONS -- 3.4%
Ahmanson, (H.F.) & Co., 6.000%, Series D 12,530 1,829,380
-----------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $26,938,539) 30,431,286
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
CONVERTIBLE CORPORATE BONDS -- 37.8%
AEROSPACE -- 1.0%
Kellstrom Industries, Inc.
5.500% 06/15/03 $ 500 $ 535,625
-----------
BANKS -- 1.0%
Bankatlantic Bancorp, Inc.
5.625% 12/01/07 500 541,875
-----------
BUSINESS SERVICES -- 2.0%
Berkshire Hathaway, Inc.
1.000% 12/02/01 250 456,562
Mail-Well, Inc.
5.000% 11/01/02 500 656,250
-----------
1,112,812
-----------
CONSTRUCTION -- 0.5%
Parker Drilling Corp.
5.500% 08/01/04 300 258,000
-----------
DRUGS -- 2.8%
Alpharma, Inc.
5.750% 04/01/05 1,000 990,000
Atrix Laboratories, Inc.
7.000% 12/01/04 500 515,625
-----------
1,505,625
-----------
ELECTRICAL -- 0.5%
Brightpoint Lyons, Inc.
0.000% 03/11/18 750 292,500
-----------
ELECTRONICS -- 9.8%
Activision, Inc.
6.750% 01/01/05 500 429,375
C-Cube Microsystems, Inc.
5.875% 11/01/05 550 486,750
Candescent Technologies Corp.
7.000% 05/01/03 300 301,500
Gilat Satellite Networks
6.500% 06/03/04 500 520,000
Kent Electronics Corp.
4.500% 09/01/04 475 395,438
Mascotech, Inc.
4.500% 12/15/03 500 480,000
MRV Communications, Inc.
5.000% 06/15/03 1,000 991,880
Quantum Corp.
7.000% 08/01/04 225 213,750
Technomatix Technologies, Ltd.
5.250% 08/15/04 630 501,637
VLSI Technology, Inc.
8.250% 10/01/05 250 243,750
World Access, Inc.
4.500% 10/01/02 500 527,500
Xilinx, Inc.
5.250% 11/01/02 250 237,500
-----------
5,329,080
-----------
See Notes to Financial Statements.
34
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
HEALTH CARE SERVICES -- 2.4%
Alza Corp.
5.000% 05/01/06 $ 490 $ 624,750
Concentra Managed Care, Inc.
4.500% 03/15/03 300 270,375
Hybridon, Inc.
9.000% 04/01/04 290 159,500
NCS Healthcare, Inc.
5.750% 08/15/04 250 268,125
-----------
1,322,750
-----------
HOTELS & RESTAURANTS -- 0.2%
Capstar Hotel Corp.
4.750% 10/15/04 100 82,000
-----------
INSURANCE -- 2.7%
American International Group, Inc.
2.250% 07/30/04 975 1,218,750
Loews Corp.
3.125% 09/15/07 250 228,125
-----------
1,446,875
-----------
MACHINERY & EQUIPMENT -- 0.6%
Credence Systems Corp.
5.250% 09/15/02 225 181,125
Halter Marine Group, Inc.
4.500% 09/15/04 200 161,750
-----------
342,875
-----------
MEDIA -- 1.0%
Omnicom Group, Inc.
4.250% 01/03/07 330 542,850
-----------
OIL & GAS -- 4.9%
Lomak Petroleum, Inc.
6.000% 02/01/07 250 220,313
Pennzoil Co.
6.500% 01/15/03 1,220 2,470,500
-----------
2,690,813
-----------
POLLUTION CONTROL -- 2.6%
U.S. Filter Corp.
4.500% 12/15/01 750 766,875
USA Waste Services, Inc.
4.000% 02/01/02 500 626,250
-----------
1,393,125
-----------
RETAIL -- 1.8%
Costco Cos., Inc.
0.000% 08/19/17 500 378,125
Rite Aid Corp.
5.250% 09/15/02 500 614,375
-----------
992,500
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
TELEPHONES -- 4.0%
Clear Channel Communications, Inc.
2.625% 04/01/03 $ 500 $ 543,125
Tel-Save Holdings, Inc.
5.000% 12/15/04 500 406,250
Tele-Communications
International, Inc.
4.500% 02/15/06 100 89,875
Telefonica Europe BV
2.000% 07/15/02 500 755,000
U.S. Cellular Corp.
0.000% 06/15/15 1,000 380,000
-----------
2,174,250
-----------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $18,788,082) 20,563,555
-----------
SHARES
-------
RIGHTS AND WARRANTS -- 0.0%
Security Capital Group, Inc.*
(Cost $0) 2,247 772
-----------
TEMPORARY INVESTMENTS -- 1.1%
Dreyfus Cash Management Plus #719 204,693 204,693
Goldman Sachs Financial Square
Money Market Portfolio 234,654 234,654
J.P. Morgan Institutional Prime
Money Market Portfolio 175,322 175,322
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $614,669) 614,669
-----------
TOTAL INVESTMENTS -- 99.7%
(Cost $48,552,880) 54,233,947
-----------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.3% 150,101
-----------
NET ASSETS -- 100.0%
Applicable to 1,850,615 and 11,287 shares
of beneficial interest outstanding of
Institutional Class and Class A, respectively,
$.001 par value (Note 7) $54,384,048
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($54,054,367/1,850,615) $29.21
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($329,681/11,287) $29.21
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
STRYPES -- Structured Yield Product Exchangeable for Stock.
See Notes to Financial Statements.
35
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK -- 98.5%
AEROSPACE -- 2.4%
Litton Industries, Inc.* 250,200 $ 14,761,800
Northrop Grumman Holdings Corp. 82,850 8,543,906
------------
23,305,706
------------
AIR TRANSPORT -- 3.4%
AMR Corp.* 286,800 23,876,100
Delta Air Lines, Inc. 70,800 9,150,900
------------
33,027,000
------------
ALCOHOLIC BEVERAGES & TOBACCO-- 1.3%
Philip Morris Cos., Inc. 223,400 8,796,375
Universal Corp. 100,000 3,737,500
------------
12,533,875
------------
APPAREL, TEXTILES -- 1.1%
VF Corp. 210,000 10,815,000
------------
AUTO RELATED -- 0.3%
ITT Industries, Inc. 70,550 2,636,806
------------
AUTOS -- 3.4%
Ford Motor Co. 562,100 33,163,900
------------
BANKS -- 4.7%
Bankers Trust Corp. 30,800 3,574,725
Chase Manhattan Corp. 322,960 24,383,480
Comerica, Inc. 74,300 4,922,375
Southtrust Corp. 287,100 12,488,850
------------
45,369,430
------------
BUSINESS SERVICES -- 1.5%
Computer Sciences Corp.* 18,600 1,190,400
Viad Corp. 478,900 13,289,475
------------
14,479,875
------------
CHEMICALS -- 0.4%
Lyondell Petrochemical Co. 137,400 4,182,112
------------
CONSTRUCTION -- 3.0%
Centex Corp. 497,000 18,761,750
Fleetwood Enterprises, Inc. 251,600 10,064,000
------------
28,825,750
------------
DRUGS -- 5.8%
Bergen Brunswig Corp. Class A 351,250 16,289,219
Bristol-Myers Squibb Co. 150,000 17,240,625
McKesson Corp. 158,600 12,886,250
PharMerica, Inc.* 818,395 9,820,740
------------
56,236,834
------------
ELECTRIC & GAS -- 5.5%
Energy East Corp. 529,400 22,036,275
GPU, Inc. 510,900 19,318,406
MarketSpan Corp. 396,968 11,884,229
------------
53,238,910
------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
ELECTRONICS -- 1.1%
Arrow Electronics, Inc.* 185,100 $ 4,025,925
SCI Systems, Inc.* 105,700 3,976,962
Tektronix, Inc. 60,075 2,125,153
------------
10,128,040
------------
FOOD & BEVERAGES -- 4.0%
Dean Foods Co. 364,700 20,035,706
Dole Food Co., Inc. 156,600 7,781,063
Smithfield Foods, Inc.* 357,100 10,757,637
------------
38,574,406
------------
FOREST PRODUCTS & PAPER -- 0.6%
Georgia Pacific Timber Group 249,600 5,756,400
------------
HEALTH CARE SERVICES -- 2.7%
AmeriSource Health Corp. Class A* 47,850 3,143,147
Arterial Vascular Engineering, Inc.* 118,600 4,232,537
Beverly Enterprises, Inc.* 1,027,300 14,189,581
Biomet, Inc. 149,500 4,933,500
------------
26,498,765
------------
HOTELS & RESTAURANTS -- 1.4%
Outback Steakhouse, Inc.* 342,200 13,324,412
------------
INSURANCE -- 9.0%
Allstate Corp. 124,775 11,424,711
Cigna Corp. 197,550 13,630,950
Conseco, Inc. 319,400 14,931,950
Equitable Cos., Inc. 452,100 33,879,244
Old Republic International Corp. 270,175 7,919,505
Travelers Group, Inc. 86,650 5,253,156
------------
87,039,516
------------
LEISURE -- 1.4%
Brunswick Corp. 214,000 5,296,500
Hasbro, Inc. 202,600 7,964,713
------------
13,261,213
------------
MACHINERY & EQUIPMENT -- 2.6%
Aeroquip Vickers, Inc. 141,500 8,260,063
Timken Co. 307,300 9,468,681
Trinity Industries, Inc. 186,900 7,756,350
------------
25,485,094
------------
MEDIA -- 1.2%
Omnicom Group, Inc. 233,900 11,665,763
------------
METALS -- 0.7%
USX-U.S. Steel Group, Inc. 214,300 7,071,900
------------
MISCELLANEOUS FINANCE -- 8.6%
Associates First Capital Corp. Class A 172,216 13,239,105
Bear Stearns Cos., Inc. 350,350 19,926,156
Countrywide Credit Industries, Inc. 205,100 10,408,825
Federal National Mortgage Association 249,300 15,144,975
Lehman Brothers Holdings, Inc. 201,800 15,652,112
Morgan Stanley Dean Witter & Co. 90,900 8,305,988
------------
82,677,161
------------
See Notes to Financial Statements.
36
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
OFFICE EQUIPMENT -- 6.4%
Comdisco, Inc. 221,200 $ 4,202,800
Dell Computer, Inc.* 138,700 12,864,425
Gateway 2000, Inc.* 219,550 11,114,719
Harris Corp. 153,150 6,843,891
International Business Machines Corp. 80,800 9,276,850
Lexmark International Group, Inc. Class A* 153,300 9,351,300
Tech Data Corp.* 199,100 8,536,413
------------
62,190,398
------------
OIL & GAS -- 5.3%
Exxon Corp. 133,900 9,548,744
Sun Co., Inc. 520,100 20,186,381
Ultramar Diamond Shamrock Corp. 310,100 9,787,531
USX-Marathon Group, Inc. 349,200 11,981,925
------------
51,504,581
------------
RETAIL -- 7.2%
BJ's Wholesale Club, Inc.* 246,800 10,026,250
Dayton Hudson Corp. 345,800 16,771,300
Ross Stores, Inc. 179,200 7,705,600
Tandy Corp. 272,200 14,443,613
TJX Cos., Inc. 838,800 20,236,050
------------
69,182,813
------------
RETAIL - FOOD -- 3.2%
Kroger Co.* 188,300 8,073,362
Safeway, Inc.* 558,900 22,740,244
------------
30,813,606
------------
TELEPHONES -- 7.3%
AT&T Corp. 477,800 27,294,325
Bell Atlantic Corp. 284,200 12,966,625
SBC Communications, Inc. 220,000 8,800,000
Southern New England
Telecommunications Corp. 61,000 3,995,500
Telefonos de Mexico S.A. ADR 144,675 6,953,442
US West, Inc. Communications Group 213,400 10,029,800
------------
70,039,692
------------
THRIFT INSTITUTIONS -- 2.4%
Dime Bancorp, Inc. 395,000 11,825,313
Golden West Financial Corp. 109,600 11,651,850
------------
23,477,163
------------
TRUCKING -- 0.6%
Paccar, Inc. 107,775 5,611,036
------------
TOTAL COMMON STOCK
(Cost $717,665,594) 952,117,157
------------
SHARES VALUE(DAGGER)
--------- ------------
TEMPORARY INVESTMENTS -- 1.8%
Dreyfus Cash Management Plus #719 5,924,062 $ 5,924,062
Goldman Sachs Financial Square
Money Market Portfolio 5,924,171 5,924,171
J.P. Morgan Institutional Prime
Money Market Portfolio 5,924,039 5,924,039
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $17,772,272) 17,772,272
------------
TOTAL INVESTMENTS -- 100.3%
(Cost $735,437,866) 969,889,429
------------
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (0.3%) (3,175,302)
------------
NET ASSETS -- 100.0%
Applicable to 47,943,243 and
1,305,434 shares outstanding of
Institutional Class and Class A,
respectively, $.001 par value;
200,000,000 authorized shares (Note 7) $966,714,127
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($941,089,802/47,943,243) $19.63
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($25,624,325/1,305,434) $19.63
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Despository Receipt.
See Notes to Financial Statements.
37
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK -- 92.5%
AEROSPACE -- 4.6%
Cordant Technologies, Inc. 6,100 $ 281,362
Northrop Grumman Holdings Corp. 6,600 680,625
Textron, Inc. 2,600 186,387
United Technologies Corp. 14,400 1,332,000
------------
2,480,374
------------
AIR TRANSPORT -- 3.6%
AMR Corp.* 16,000 1,332,000
Delta Air Lines, Inc. 1,200 155,100
UAL Corp.* 6,100 475,800
------------
1,962,900
------------
ALCOHOLIC BEVERAGES & TOBACCO -- 1.9%
Philip Morris Cos., Inc. 25,700 1,011,937
------------
APPAREL, TEXTILES -- 1.0%
VF Corp. 10,400 535,600
------------
AUTOS -- 3.2%
Ford Motor Co. 29,300 1,728,700
------------
BANKS -- 9.1%
Bankers Trust Corp. 10,100 1,172,231
Chase Manhattan Corp. 15,600 1,177,800
First Chicago NBD Corp. 9,171 812,780
Fleet Financial Group, Inc. 3,000 250,500
Keycorp 17,400 619,875
Mellon Bank Corp. 13,000 905,125
------------
4,938,311
------------
BUSINESS SERVICES -- 0.3%
Deluxe Corp. 4,000 143,250
------------
CHEMICALS -- 0.5%
Dow Chemical Co. 3,000 290,062
------------
CONSTRUCTION -- 1.8%
Armstrong World Industries, Inc. 4,000 269,500
Centex Corp. 18,100 683,275
------------
952,775
------------
DRUGS -- 7.5%
American Home Products Corp. 4,400 227,700
Bristol-Myers Squibb Co. 17,300 1,988,419
McKesson Corp. 4,400 357,500
Pfizer, Inc. 7,900 858,631
Warner-Lambert Co. 9,600 666,000
------------
4,098,250
------------
ELECTRIC & GAS -- 6.7%
DTE Energy Co. 11,600 468,350
Energy East Corp. 7,700 320,512
Entergy Corp. 15,700 451,375
GPU, Inc. 9,000 340,312
MarketSpan Corp. 6,160 184,415
New Century Energies, Inc. 6,900 313,519
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
ELECTRIC & GAS (CONTINUED)
Nicor, Inc. 3,000 $ 120,375
PECO Energy Co. 7,400 215,987
Sempra Energy* 30,677 851,301
Unicom Corp. 10,400 364,650
------------
3,630,796
------------
ELECTRICAL -- 0.5%
General Electric Co. 1,500 136,500
Honeywell, Inc. 1,900 158,769
------------
295,269
------------
ELECTRONICS -- 1.1%
Intel Corp. 7,900 585,094
------------
ENERGY SERVICES -- 0.5%
Ensco International, Inc. 17,300 300,587
------------
FOREST PRODUCTS & PAPER -- 0.3%
Georgia Pacific Timber Group 7,200 166,050
------------
HEALTH CARE SERVICES -- 0.9%
Arterial Vascular Engineering, Inc.* 13,500 481,781
------------
INSURANCE -- 4.9%
Cigna Corp. 23,100 1,593,900
Conseco, Inc. 18,600 869,550
Lincoln National Corp. 2,100 191,888
------------
2,655,338
------------
MACHINERY & EQUIPMENT -- 1.2%
Deere & Co. 7,800 412,425
Timken Co. 7,000 215,688
------------
628,113
------------
METALS -- 2.5%
Phelps Dodge Corp. 3,000 171,563
USX-U.S. Steel Group, Inc. 36,300 1,197,900
------------
1,369,463
------------
MISCELLANEOUS FINANCE -- 4.2%
Associates First Capital Corp. Class A 7,679 590,323
Merrill Lynch & Co., Inc. 12,600 1,162,350
SLM Holding Corp. 11,200 548,800
------------
2,301,473
------------
OFFICE EQUIPMENT -- 10.0%
Compaq Computer Corp. 24,600 698,025
Dell Computer, Inc.* 18,200 1,688,050
International Business Machines Corp. 7,200 826,650
Microsoft Corp.* 17,200 1,864,050
Sun Microsystems, Inc.* 5,500 238,906
Xerox Corp. 1,200 121,950
------------
5,437,631
------------
See Notes to Financial Statements.
38
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
OIL & GAS -- 9.3%
Atlantic Richfield Co. 8,600 $ 671,875
Exxon Corp. 26,600 1,896,913
Phillips Petroleum Co. 15,600 751,725
Sun Co., Inc. 27,655 1,073,360
Texaco, Inc. 10,800 644,625
------------
5,038,498
------------
RETAIL -- 5.7%
BJ's Wholesale Club, Inc.* 9,500 385,938
Dayton Hudson Corp. 23,200 1,125,200
Family Dollar Stores, Inc. 21,200 392,200
Gap, Inc. 7,500 462,187
Penney, J.C. Co. 10,200 737,588
------------
3,103,113
------------
RETAIL - FOOD -- 0.7%
Safeway, Inc.* 9,400 382,463
------------
TELEPHONES -- 8.7%
Ameritech Corp. 4,800 215,400
AT&T Corp. 20,000 1,142,500
BCE, Inc. 20,600 879,363
Bell Atlantic Corp. 25,496 1,163,255
British Telecommunications P.L.C. ADR 6,300 778,050
GTE Corp. 10,000 556,250
------------
4,734,818
------------
THRIFT INSTITUTIONS -- 1.8%
Ahmanson (H.F.) & Co. 9,500 674,500
Washington Mutual, Inc. 6,750 292,781
------------
967,281
------------
TOTAL COMMON STOCK
(Cost $31,285,211) 50,219,927
------------
SHARES VALUE(DAGGER)
--------- ------------
TEMPORARY INVESTMENTS -- 4.9%
Dreyfus Cash Management Plus #719 815,822 $ 815,822
Goldman Sachs Financial Square Money
Market Portfolio 1,002,765 1,002,765
J.P. Morgan Institutional Prime Money
Market Portfolio 845,924 845,924
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $2,664,511) 2,664,511
-----------
TOTAL INVESTMENTS -- 97.4%
(Cost $33,949,722) 52,884,438
-----------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 2.6% 1,398,932
-----------
NET ASSETS -- 100.0%
Applicable to 2,778,366 and 118,589
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 7) $54,283,370
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($52,061,329/2,778,366) $18.74
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($2,222,041/118,589) $18.74
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depository Receipt.
See Notes to Financial Statements.
39
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK -- 97.2%
AEROSPACE -- 2.0%
Textron, Inc. 20,000 $ 1,433,750
United Technologies Corp. 15,000 1,387,500
------------
2,821,250
------------
AIR TRANSPORT -- 1.9%
Southwest Airlines Co. 92,500 2,740,312
------------
ALCOHOLIC BEVERAGES & TOBACCO -- 1.4%
Philip Morris Cos., Inc. 50,000 1,968,750
------------
AUTO RELATED -- 1.3%
Cooper Tire & Rubber Co. 35,000 721,875
ITT Industries, Inc. 31,854 1,190,543
------------
1,912,418
------------
BANKS -- 3.3%
BankBoston Corp. 24,200 1,346,125
Southtrust Corp. 37,500 1,631,250
State Street Corp. 25,000 1,737,500
------------
4,714,875
------------
BUSINESS SERVICES -- 1.5%
Computer Sciences Corp.* 16,000 1,024,000
FDX Corp.* 10,000 627,500
Sterling Software, Inc.* 16,000 473,000
------------
2,124,500
------------
CHEMICALS -- 0.7%
Dow Chemical Co. 10,000 966,875
------------
CONSTRUCTION -- 0.4%
Fleetwood Enterprises, Inc. 15,000 600,000
------------
COSMETICS & SOAP -- 1.8%
Clorox Co. 17,000 1,621,375
Procter & Gamble Co. 10,000 910,625
------------
2,532,000
------------
DRUGS -- 12.8%
Abbott Laboratories, Inc. 40,664 1,662,141
American Home Products Corp. 25,000 1,293,750
Bristol-Myers Squibb Co. 27,000 3,103,312
McKesson Corp. 17,000 1,381,250
Merck & Co., Inc. 6,000 802,500
Pfizer, Inc. 37,000 4,021,437
Schering Plough Corp. 65,000 5,955,625
------------
18,220,015
------------
ELECTRICAL -- 2.0%
General Electric Co. 32,000 2,912,000
------------
ELECTRONICS -- 5.6%
Intel Corp. 30,000 2,221,875
Lucent Technologies, Inc. 28,278 2,352,376
SCI Systems, Inc.* 23,000 865,375
Sundstrand Corp. 25,000 1,431,250
Tellabs, Inc.* 15,000 1,073,437
------------
7,944,313
------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
ENERGY SERVICES -- 0.9%
Ensco International, Inc. 35,000 $ 608,125
Tidewater, Inc. 20,000 660,000
------------
1,268,125
------------
FOOD & BEVERAGES -- 6.1%
Coca-Cola Enterprises, Inc. 25,000 981,250
Conagra, Inc. 28,400 899,925
Dean Foods Co. 55,000 3,021,563
Pepsico, Inc. 30,000 1,235,625
Quaker Oats Co. 30,000 1,648,125
Smithfield Foods, Inc.* 30,000 903,750
------------
8,690,238
------------
FOREST PRODUCTS & PAPER -- 0.9%
Fort James Corp. 27,500 1,223,750
------------
HEALTH CARE SERVICES -- 2.4%
Arterial Vascular Engineering, Inc.* 30,000 1,070,625
Medtronic, Inc. 18,000 1,147,500
SmithKline Beecham P.L.C. ADR 20,000 1,210,000
------------
3,428,125
------------
INSURANCE -- 8.2%
AMBAC Financial Group, Inc. 41,000 2,398,500
American International Group, Inc. 10,048 1,467,008
Conseco, Inc. 25,000 1,168,750
Reliastar Financial Corp. 45,000 2,160,000
SunAmerica, Inc. 30,000 1,723,125
Travelers Group, Inc. 44,999 2,728,064
------------
11,645,447
------------
MACHINERY & EQUIPMENT -- 3.1%
Aeroquip Vickers, Inc. 25,000 1,459,375
Applied Materials, Inc.* 22,000 649,000
Deere & Co. 15,000 793,125
Parker-Hannifin Corp. 40,000 1,525,000
------------
4,426,500
------------
MISCELLANEOUS FINANCE -- 8.9%
Bear Stearns Cos., Inc. 22,000 1,251,250
Countrywide Credit Industries, Inc. 29,275 1,485,706
Federal National Mortgage Association 57,000 3,462,750
Lehman Brothers Holdings, Inc. 10,000 775,625
Merrill Lynch & Co., Inc. 20,000 1,845,000
Morgan Stanley Dean Witter & Co. 19,000 1,736,125
SLM Holding Corp. 43,750 2,143,750
------------
12,700,206
------------
OFFICE EQUIPMENT -- 13.8%
BMC Software, Inc.* 34,000 1,765,875
Cisco Systems, Inc.* 19,500 1,795,219
Compaq Computer Corp. 21,500 610,063
Computer Associates International, Inc. 20,000 1,111,250
Dell Computer, Inc.* 12,000 1,113,000
Gateway 2000, Inc.* 25,000 1,265,625
Hewlett Packard Co. 15,000 898,125
See Notes to Financial Statements.
40
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
OFFICE EQUIPMENT (CONTINUED)
International Business Machines Corp. 13,000 $ 1,492,563
Lexmark International Group, Inc. Class A* 25,000 1,525,000
Microsoft Corp.* 45,000 4,876,875
Sun Microsystems, Inc.* 20,000 868,750
Tech Data Corp.* 25,000 1,071,875
Xerox Corp. 12,500 1,270,313
------------
19,664,533
------------
OIL & GAS -- 2.1%
Coastal Corp. 15,000 1,047,188
Global Marine, Inc.* 40,000 747,500
Tosco Corp. 40,000 1,175,000
------------
2,969,688
------------
RETAIL -- 6.5%
Costco Cos., Inc.* 25,000 1,576,563
Dayton Hudson Corp. 56,000 2,716,000
Family Dollar Stores, Inc. 50,000 925,000
Federated Department Stores, Inc.* 30,000 1,614,375
TJX Cos., Inc. 101,000 2,436,625
------------
9,268,563
------------
RETAIL - FOOD -- 2.3%
Safeway, Inc.* 81,600 3,320,100
------------
TELEPHONES -- 4.2%
AT&T Corp. 65,000 3,713,125
GTE Corp. 20,000 1,112,500
SBC Communications, Inc. 30,000 1,200,000
------------
6,025,625
------------
THRIFT INSTITUTIONS -- 1.4%
Washington Mutual, Inc. 45,000 1,951,875
------------
TRUCKING -- 1.7%
CNF Transportation, Inc. 22,500 956,250
Pittston Brink's Group 15,000 553,125
Ryder System, Inc. 30,000 946,875
------------
2,456,250
------------
TOTAL COMMON STOCK
(Cost $88,724,745) 138,496,333
------------
SHARES VALUE(DAGGER)
--------- ------------
TEMPORARY INVESTMENTS -- 2.1%
Dreyfus Cash Management Plus #719 1,020,015 $ 1,020,015
Goldman Sachs Financial Square
Money Market Portfolio 1,008,233 1,008,233
J.P. Morgan Institutional Prime
Money Market Portfolio 1,020,797 1,020,797
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,049,045) 3,049,045
------------
TOTAL INVESTMENTS -- 99.3%
(Cost $91,773,790) 141,545,378
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.7% 970,339
------------
NET ASSETS -- 100.0%
Applicable to 5,214,362 and 222,135
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 7) $142,515,717
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($136,702,149/5,214,362) $26.22
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($5,813,568/222,135) $26.17
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depository Receipt.
See Notes to Financial Statements.
41
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK -- 96.9%
AEROSPACE -- 2.6%
Cordant Technologies, Inc. 80,000 $ 3,690,000
Decrane Aircraft Holdings, Inc.* 45,000 765,000
Esterline Technologies Corp.* 25,000 514,063
Gencorp, Inc. 25,000 631,250
Kellstrom Industries, Inc.* 19,000 555,750
Midwest Express Holdings, Inc.* 45,000 1,628,437
Tristar Aerospace Co.* 36,000 558,000
------------
8,342,500
------------
AIR TRANSPORT -- 0.9%
Circle International Group, Inc. 45,000 1,260,000
Expeditors International, Inc. 35,000 1,531,250
Navigant International, Inc.* 1 6
------------
2,791,256
------------
ALCOHOLIC BEVERAGES & TOBACCO -- 0.3%
Holt's Cigar Holdings, Inc* 25,200 141,750
Robert Mondavi Corp. Class A* 25,000 707,812
------------
849,562
------------
APPAREL, TEXTILES -- 1.6%
Ashworth, Inc.* 30,000 412,500
Fossil, Inc.* 36,750 914,156
Mohawk Industries, Inc.* 39,000 1,235,812
Nautica Enterprises, Inc.* 40,000 1,072,500
Oshkosh B'Gosh, Inc. Class A 6,825 303,712
Springs Industries, Inc. Class A 23,100 1,065,487
------------
5,004,167
------------
AUTO RELATED -- 0.7%
Aftermarket Technology Corp.* 51,550 966,562
Breed Technologies, Inc. 16,900 258,781
Mascotech, Inc. 40,000 960,000
------------
2,185,343
------------
AUTOS -- 0.1%
Navistar International Corp.* 10,000 288,750
------------
BANKS -- 9.3%
Centura Banks, Inc. 20,000 1,250,000
City National Corp. 10,000 369,375
Commerce Bancshares, Inc. 80,404 3,899,594
Compass Bancshares, Inc. 25,000 1,121,875
Corus Bankshares, Inc. 15,000 603,750
Doral Financial Corp. 60,000 1,035,000
Everen Capital Corp. 42,950 1,202,600
Fleet Financial Group, Inc. 40,861 3,411,893
Friedman, Billings, Ramsey Group, Inc.
Class A* 25,000 360,937
Headlands Mortgage Co.* 22,500 421,875
Hibernia Corp. Class A 15,000 302,812
Keystone Financial, Inc. 10,000 367,500
Mississippi Valley Bancshares, Inc. 10,000 395,000
NBT Bancorp, Inc. 11,666 296,025
North Fork Bancorp, Inc. 90,000 2,199,375
Old Kent Financial Corp. 110,245 3,961,958
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
BANKS (CONTINUED)
Provident Bankshares Corp. 52,500 $ 1,548,750
Provident Financial Group, Inc. 41,250 1,882,031
Southtrust Corp. 26,100 1,135,350
U.S. Bancorp, Inc. 10,000 773,125
Westamerica Bancorp 33,300 1,069,762
Western Bancorp 25,000 1,064,062
Zions Bancorp 15,000 796,875
------------
29,469,524
------------
BUSINESS SERVICES -- 9.4%
A.C. Nielsen Corp.* 49,000 1,237,250
Aztec Technology Partners, Inc.* 0 3
Best Software, Inc.* 15,000 311,250
C.H. Robinson Worldwide, Inc. 40,000 995,000
Catalina Marketing Corp.* 15,000 779,062
CDI Corp.* 6,400 171,200
Central Parking Corp. 6,925 315,087
Checkpoint Systems, Inc.* 62,000 875,750
Ciber, Inc.* 100,000 3,800,000
Complete Business Solutions, Inc.* 40,000 1,435,000
Computer Task Group, Inc. 10,000 335,000
Conning Corp. 9,000 174,937
Corrections Corp.* 40,000 940,000
Deltek Systems, Inc.* 25,000 606,250
G. & K. Services, Inc. Class A 28,600 1,247,675
Gartner Group, Inc. Class A* 40,000 1,397,500
Hyperion Software Corp.* 40,000 1,140,000
Keane, Inc.* 37,000 2,072,000
LECG, Inc.* 30,000 450,000
Mail-Well, Inc.* 85,000 1,843,437
Mastech Corp.* 40,000 1,115,000
Merrill Corp. 64,000 1,412,000
Metamor Worldwide, Inc.* 73,000 2,568,687
National Computer Systems, Inc. 50,000 1,193,750
Norrell Corp. 27,600 550,275
Pairgain Technologies, Inc.* 20,000 347,500
Robert Half International, Inc.* 15,000 838,125
Shared Medical Systems Corp. 18,000 1,321,875
Sodak Gaming, Inc.* 40,000 250,000
Workflow Management, Inc.* 0 2
------------
29,723,615
------------
CHEMICALS -- 1.3%
Agribiotech, Inc.* 35,500 980,687
Carbide/Graphite Group, Inc.* 15,000 417,187
Hexcel Corp.* 10,000 226,250
MacDermid, Inc. 22,000 621,500
Tredegar Industries, Inc. 6,500 551,687
Valspar Corp. 35,000 1,386,875
------------
4,184,186
------------
CONSTRUCTION -- 5.9%
Centex Construction Products, Inc. 27,500 1,058,750
Centex Corp. 70,480 2,660,620
D.R. Horton, Inc. 87,500 1,826,562
Fleetwood Enterprises, Inc. 14,925 597,000
See Notes to Financial Statements.
42
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
CONSTRUCTION (CONTINUED)
Halter Marine Group, Inc.* 58,500 $ 881,156
Kaufman & Broad Home Corp. 165,000 5,238,750
Lennar Corp. 50,000 1,475,000
LNR Property Corp. Class B 50,000 1,281,250
M.D.C. Holdings, Inc. 25,000 493,750
Toll Brothers, Inc.* 40,000 1,147,500
Triangle Pacific Corp.* 40,000 2,197,500
------------
18,857,838
------------
COSMETICS & SOAP -- 0.5%
Alberto-Culver Co. Class A 50,000 1,268,750
Alberto-Culver Co. Class B 5,200 150,800
------------
1,419,550
------------
DRUGS -- 3.5%
Bergen Brunswig Corp. Class A 37,100 1,720,512
Bindley Western Industries, Inc. 13,333 439,989
K V Pharmaceutical Co. Class A* 47,700 1,079,212
K V Pharmaceutical Co. Class B* 9,000 207,562
McKesson Corp. 80,000 6,500,000
Shire Pharmaceuticals Group P.L.C. ADR* 55,000 1,175,625
------------
11,122,900
------------
ELECTRIC & GAS -- 0.6%
Minnesota Power, Inc. 25,000 993,750
Piedmont Natural Gas Co., Inc. 30,000 1,008,750
------------
2,002,500
------------
ELECTRICAL -- 0.9%
ATMI, Inc.* 30,000 450,000
Axsys Technologies, Inc.* 25,000 481,250
Kent Electronics Corp.* 25,000 457,813
MDU Resources Group, Inc. 20,000 713,750
Thomas Industries, Inc. 26,500 647,594
------------
2,750,407
------------
ELECTRONICS -- 8.3%
Apex PC Solutions, Inc.* 50,000 1,387,500
Applied Micro Circuits Corp.* 18,000 466,875
BMC Industries, Inc. 25,000 218,750
Brightpoint, Inc.* 80,000 1,155,000
C&D Technologies, Inc. 21,700 1,258,600
Cable Design Technologies, Inc.* 25,000 515,625
CHS Electronics, Inc.* 13,750 244,063
Cognex Corp.* 35,000 651,875
Digital Microwave Corp.* 20,000 145,000
Essex International, Inc.* 25,000 590,625
General Cable Corp. 105,000 3,031,875
Hypercom Corp.* 13,500 135,000
Metro Information Services, Inc.* 40,000 1,560,000
Micrel, Inc.* 70,000 2,275,000
Mitel Corp.* 60,000 821,250
Photronics Labs, Inc.* 50,000 1,100,000
Plantronics, Inc.* 19,000 978,500
PMC-Sierra, Inc.* 100,000 4,675,000
Rambus, Inc.* 4,500 273,938
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
ELECTRONICS (CONTINUED)
Sanmina Corp.* 18,000 $ 777,375
Vitesse Semiconductors Corp.* 130,000 4,013,750
------------
26,275,601
------------
ENERGY SERVICES -- 0.1%
Global Industries Ltd.* 20,000 336,250
------------
FOOD & BEVERAGES -- 3.6%
AquaPenn Spring Water Company, Inc.* 100,000 862,500
Dean Foods Co. 89,000 4,889,438
Delta & Pine Land Co. 50,333 2,239,819
Earthgrains Co. 13,000 726,375
Flowers Industries, Inc. 22,500 459,844
Omega Protein Corp.* 32,000 492,000
Suiza Foods Corp.* 30,000 1,790,625
------------
11,460,601
------------
FOREST PRODUCTS & PAPER -- 1.3%
Buckeye Technologies, Inc.* 50,000 1,178,125
Fibermark, Inc.* 30,000 480,000
Wausau-Mosinee Paper Corp. 108,393 2,479,490
------------
4,137,615
------------
HEALTH CARE SERVICES -- 5.4%
Computer Motion, Inc.* 28,800 374,400
Cooper Cos., Inc.* 10,000 364,375
Depuy, Inc. 25,000 706,250
Express Scripts, Inc. Class A* 14,000 1,120,000
Focal, Inc.* 17,500 172,813
Hooper Holmes, Inc. 40,000 840,000
Incyte Pharmaceuticals, Inc.* 20,000 682,500
Kendle International, Inc.* 22,500 669,375
Mentor Corp. 62,100 1,498,163
Safeskin Corp.* 102,000 4,194,750
Total Renal Care Holdings, Inc.* 66,666 2,299,977
Universal Health Services, Inc. Class B* 60,000 3,502,500
Ventana Medical Systems, Inc.* 25,000 700,000
------------
17,125,103
------------
HOTELS & RESTAURANTS -- 0.7%
CKE Restaurants, Inc. 56,320 2,323,200
------------
HOUSEHOLD GOODS -- 3.2%
Blyth Industries, Inc.* 22,500 748,125
Ethan Allen Interiors, Inc. 40,000 1,997,500
First Brands Corp. 53,400 1,368,375
La-Z-Boy, Inc. 17,500 988,750
LADD Furniture, Inc.* 50,000 1,493,750
Miller (Herman), Inc. 58,300 1,413,775
Oneida Ltd. 21,375 654,609
Pillowtex Corp. 40,000 1,605,000
------------
10,269,884
------------
INSURANCE -- 4.6%
Capital Re Corp. 14,000 1,002,750
First American Financial Corp. 31,000 2,790,000
Hartford Life, Inc. Class A 25,000 1,423,438
See Notes to Financial Statements.
43
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
INSURANCE (CONTINUED)
Horace Mann Educators Corp. 17,500 $ 603,750
Medical Assurance, Inc.* 25,000 693,750
Nationwide Financial Services, Inc. Class A 75,000 3,825,000
Old Republic International Corp. 150,000 4,396,875
------------
14,735,563
------------
LEISURE -- 0.9%
American Skiing Co.* 15,000 195,000
Fairfield Communities, Inc.* 139,450 2,675,697
------------
2,870,697
------------
MACHINERY & EQUIPMENT -- 2.8%
ADC Telecommunications, Inc.* 103,600 3,781,400
Crane Co. 20,250 983,391
Griffon Corp.* 50,000 640,625
Idex Corp. 46,500 1,604,250
Scotsman Industries, Inc. 15,000 416,250
SPS Technologies, Inc.* 20,000 1,170,000
Tokheim Corp.* 19,000 389,500
------------
8,985,416
------------
MEDIA -- 3.6%
Capstar Broadcasting Corp. Class A* 25,000 628,125
Central Newspapers, Inc. Class A 10,000 697,500
Cumulus Media, Inc. Class A* 9,000 131,063
Omnicom Group, Inc. 72,000 3,591,000
Outdoor Systems, Inc.* 84,375 2,362,500
Pulitzer Publishing Co. 10,000 892,500
Univision Communications, Inc. Class A* 50,000 1,862,500
Westwood One, Inc.* 23,500 590,438
Young & Rubicam, Inc.* 22,500 720,000
------------
11,475,626
------------
METALS -- 2.1%
Atchison Casting Corp.* 30,000 536,250
Chase Industries, Inc.* 15,000 296,250
Gibraltar Steel Corp.* 20,000 410,000
Kaynar Technologies, Inc.* 23,000 526,125
Precision Castparts Corp. 60,000 3,202,500
Reliance Steel & Aluminum Corp. 23,000 888,375
Valmont Industries, Inc. 40,000 797,500
------------
6,657,000
------------
MISCELLANEOUS FINANCE -- 3.3%
Allied Capital Corp. 11,774 288,463
Americredit Corp.* 67,000 2,391,063
CB Richard Ellis Services, Inc.* 25,000 835,938
CRIIMI MAE, Inc. 39,000 541,125
Eaton Vance Corp. 26,000 1,204,125
Excel Legacy Corp.* 19,186 83,939
Excel Realty Trust, Inc. 19,186 552,797
First Industrial Realty Trust, Inc. 10,000 318,125
Healthcare Financial Partners, Inc.* 32,500 1,990,625
Innkeepers USA Trust, Inc. 21,500 271,438
Jefferies Group, Inc. 9,000 369,000
Lasalle Hotel Properties* 45,000 762,188
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
MISCELLANEOUS FINANCE (CONTINUED)
Morgan Keegan, Inc. 25,000 $ 646,875
TCF Financial Corp. 7,766 229,097
------------
10,484,798
------------
OFFICE EQUIPMENT -- 5.4%
Aspec Technology, Inc.* 7,000 45,500
Aspen Technology, Inc.* 30,000 1,515,000
Bea Systems, Inc.* 178,000 4,071,750
Black Box Corp.* 20,000 663,750
Comdisco, Inc. 112,500 2,137,500
Comverse Technology, Inc.* 20,000 1,037,500
Dialogic Corp.* 15,000 442,500
H.T.E., Inc.* 20,000 268,750
Henry (Jack) & Associates, Inc. 45,000 1,546,875
Information Management Resources, Inc.* 39,375 1,331,367
MTS Systems Corp. 84,800 1,362,100
Peerless Systems Corp.* 50,000 1,037,500
Safeguard Scientific, Inc.* 20,000 833,750
Sterling Commerce, Inc.* 16,000 776,000
U.S. Office Products Co. 1 15
------------
17,069,857
------------
OIL & GAS -- 1.7%
Key Energy Group, Inc.* 22,500 295,313
North Carolina Natural Gas, Inc. 37,500 951,563
Nuevo Energy Co.* 36,000 1,156,500
Omni Energy Services Corp.* 25,000 337,500
Pride International, Inc.* 100,000 1,693,750
Stone Energy Corp.* 30,000 1,066,875
------------
5,501,501
------------
PHOTOGRAPHIC -- 0.0%
Panavision, Inc.* 1,902 49,928
------------
POLLUTION CONTROL -- 0.2%
Donaldson, Inc. 28,000 661,500
------------
RETAIL -- 8.9%
Abercrombie & Fitch Co. Class A* 38,150 1,678,600
CVS Corp. 68,572 2,670,022
Dress Barn, Inc.* 69,750 1,735,031
Fred Meyer, Inc.* 10,000 425,000
Fred's, Inc. Class A 50,000 1,275,000
Garden Ridge Corp.* 50,000 968,750
Goody's Family Clothing, Inc.* 40,000 2,182,500
Hines Horticulture, Inc.* 45,000 495,000
Linens 'N Things, Inc.* 160,000 4,890,000
Neiman-Marcus Group, Inc.* 47,000 2,041,563
Oakwood Homes Corp. 100,000 3,000,000
Pacific Sunwear of California, Inc.* 45,000 1,575,000
Pier 1 Imports, Inc. 43,000 1,026,625
Regis Corp. 51,500 1,516,031
School Specialty, Inc.* 1 9
Tiffany & Co., Inc. 55,000 2,640,000
Track N' Trail, Inc.* 65,000 308,750
------------
28,427,881
------------
See Notes to Financial Statements.
44
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
RETAIL - FOOD -- 0.6%
Foodmaker, Inc.* 80,000 $ 1,350,000
Ruddick Corp. 29,400 532,875
------------
1,882,875
------------
TELEPHONES -- 0.9%
Boston Communications Group, Inc.* 24,000 207,000
Qwest Communications International, Inc. 40,813 1,420,803
STAR Telecommunications, Inc.* 38,000 847,875
Tel-Save Holdings, Inc.* 29,500 435,125
------------
2,910,803
------------
THRIFT INSTITUTIONS -- 1.7%
Albank Financial Corp. 15,000 1,058,438
Anchor Bancorp Wisconsin, Inc. 25,000 976,563
Andover Bancorp, Inc. 25,000 856,250
Charter One Financial, Inc. 38,220 1,282,759
Dime Bancorp, Inc. 21,000 628,688
MAF Bancorp, Inc. 15,000 545,625
------------
5,348,323
------------
TOTAL COMMON STOCK
(Cost $219,744,882) 307,982,120
------------
CONVERTIBLE PREFERRED STOCK -- 0.5%
OIL & GAS -- 0.5%
Cross Timbers Oil Co., $1.5625, 12/31/49,
Series A
(Cost $987,859) 36,120 1,546,388
------------
SHARES VALUE(DAGGER)
--------- ------------
TEMPORARY INVESTMENTS -- 2.3%
Dreyfus Cash Management Plus #719 2,479,542 $ 2,479,542
Goldman Sachs Financial Square
Money Market Portfolio 2,357,512 2,357,512
J.P. Morgan Institutional Prime
Money Market Portfolio 2,479,684 2,479,684
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $7,316,738) 7,316,738
------------
TOTAL INVESTMENTS -- 99.7%
(Cost $228,049,479) 316,845,246
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.3% 837,102
------------
NET ASSETS -- 100.0%
Applicable to 16,504,497 and 245,461
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 7) $317,682,348
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($313,043,262/16,504,497) $18.97
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($4,639,086/245,461) $18.90
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depository Receipt.
See Notes to Financial Statements.
45
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK -- 95.2%
AEROSPACE -- 3.9%
Alliant Techsystems, Inc.* 22,900 $ 1,448,425
Esterline Technologies Corp.* 140,400 2,886,975
------------
4,335,400
------------
AIR TRANSPORT -- 3.1%
Continental Airlines, Inc. Class B* 57,100 3,475,962
------------
ALCOHOLIC BEVERAGES & TOBACCO -- 2.9%
Universal Corp. 85,300 3,188,087
------------
APPAREL, TEXTILES -- 1.6%
Guilford Mills, Inc. 43,300 866,000
Kellwood Co. 12,800 457,600
Oxford Industries, Inc. 13,800 482,137
------------
1,805,737
------------
AUTO RELATED -- 2.2%
Mascotech, Inc. 17,200 412,800
Superior Industries International, Inc. 74,000 2,085,875
------------
2,498,675
------------
BANKS -- 6.0%
Compass Bancshares, Inc. 34,250 1,536,969
Everen Capital Corp. 51,200 1,433,600
GBC Bancorp 65,100 1,725,150
Old Kent Financial Corp. 38,866 1,396,776
One Valley Bancorp 14,875 541,078
------------
6,633,573
------------
BUSINESS SERVICES -- 6.5%
Aviall, Inc.* 111,300 1,523,419
Bowne & Co., Inc. 25,300 1,138,500
Franklin Covey Co.* 21,300 410,025
Inacom Corp.* 47,600 1,511,300
Kelly Services, Inc. Class A 56,200 1,981,050
Selective Insurance Group, Inc. 30,200 675,725
------------
7,240,019
------------
CASINOS -- 2.4%
Grand Casinos, Inc.* 160,600 2,690,050
------------
CHEMICALS -- 2.0%
Georgia Gulf Corp. 28,400 647,875
Robbins & Myers, Inc. 55,300 1,607,156
------------
2,255,031
------------
CONSTRUCTION -- 9.3%
Centex Corp. 91,500 3,454,125
Fleetwood Enterprises, Inc. 18,300 732,000
Modine Manufacturing Co. 12,200 422,425
Vulcan Materials Co. 27,800 2,965,912
Webb Corp. 107,100 2,777,906
------------
10,352,368
------------
CONTAINERS -- 0.6%
Libbey, Inc. 16,900 647,481
------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
ELECTRIC & GAS -- 7.4%
Central Hudson Gas & Electric Corp. 35,700 $ 1,637,737
Cleco Corp. 18,000 535,500
Eastern Utilities Associates 73,000 1,916,250
Interstate Energy Corp. 24,966 811,395
OGE Energy Corp. 16,600 448,200
Piedmont Natural Gas Co., Inc. 21,900 736,387
Public Service Co. of New Mexico 75,300 1,708,369
Washington Water Power Co. 22,600 507,087
------------
8,300,925
------------
ELECTRONICS -- 5.0%
Marshall Industries, Inc.* 68,100 1,855,725
NeoMagic Corp.* 69,300 1,069,819
Park Electrochemical Corp. 28,250 596,781
Superior Telecom, Inc. 48,000 1,998,000
------------
5,520,325
------------
ENERGY SERVICES -- 2.7%
Tuboscope, Inc.* 68,000 1,343,000
Zeigler Coal Holding Co. 94,300 1,614,887
------------
2,957,887
------------
FOREST PRODUCTS & PAPER -- 0.9%
Schweitzer-Mauduit International, Inc. 36,300 1,052,700
------------
HEALTH CARE SERVICES -- 6.8%
Cooper Cos., Inc.* 48,100 1,752,644
Datascope Corp.* 53,300 1,415,781
Dexter Corp. 18,000 572,625
Lincare Holdings, Inc.* 78,500 3,297,000
Mariner Health Group, Inc.* 32,800 545,300
------------
7,583,350
------------
HOTELS & RESTAURANTS -- 0.6%
Red Roof Inns, Inc.* 36,700 621,606
------------
HOUSEHOLD GOODS -- 0.6%
La-Z-Boy, Inc. 11,600 655,400
------------
INSURANCE -- 10.5%
Chartwell Re Corp. 19,500 574,031
First American Financial Corp. 48,850 4,396,500
Gallagher (Arthur J.) & Co. 77,500 3,468,125
Old Republic International Corp. 110,955 3,252,368
------------
11,691,024
------------
MACHINERY & EQUIPMENT -- 3.4%
Commercial Intertech Corp. 49,900 904,438
Gardner Denver Machinery, Inc.* 69,400 1,917,175
Gleason Corp. 35,325 993,516
------------
3,815,129
------------
MEDIA -- 1.0%
Media General, Inc. Class A 23,700 1,155,375
------------
See Notes to Financial Statements.
46
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
METALS -- 1.6%
Cleveland Cliffs, Inc. 13,100 $ 702,488
Reliance Steel & Aluminum Corp. 29,300 1,131,713
------------
1,834,201
------------
MISCELLANEOUS FINANCE -- 3.1%
Eaton Vance Corp. 19,800 916,988
Lehman Brothers Holdings, Inc. 32,000 2,482,000
------------
3,398,988
------------
OFFICE EQUIPMENT -- 4.2%
HMT Technology Corp.* 173,900 1,445,544
Storage Technology Corp.* 28,400 1,231,850
Systems & Computer Technology Corp.* 76,600 2,058,625
------------
4,736,019
------------
OIL & GAS -- 1.0%
Tesoro Petroleum Corp.* 15,900 252,413
Washington Gas Light Corp. 34,100 912,175
------------
1,164,588
------------
RETAIL -- 5.6%
Ames Department Stores, Inc.* 35,000 920,938
Compucom Systems, Inc.* 64,900 421,850
Footstar, Inc.* 70,700 3,393,600
Lands' End, Inc.* 47,800 1,511,675
------------
6,248,063
------------
THRIFT INSTITUTIONS -- 0.3%
Peoples Heritage Financial Group, Inc. 14,800 349,650
------------
TOTAL COMMON STOCK
(Cost $89,029,696) 106,207,613
------------
SHARES VALUE(DAGGER)
--------- ------------
TEMPORARY INVESTMENTS -- 4.4%
Dreyfus Cash Management Plus #719 1,616,941 $ 1,616,941
Goldman Sachs Financial Square
Money Market Portfolio 1,638,189 1,638,189
J.P. Morgan Institutional Prime
Money Market Portfolio 1,637,278 1,637,278
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $4,892,408) 4,892,408
------------
TOTAL INVESTMENTS -- 99.6%
(Cost $93,922,104) 111,100,021
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.4% 451,983
------------
NET ASSETS -- 100.0%
Applicable to 3,104,449 and 17,651 shares
of beneficial interest outstanding of
Institutional Class and Class A, respectively,
$.001 par value (Note 7) $111,552,004
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($110,922,140/3,104,449) $35.73
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($629,864/17,651) $35.68
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
*Non-income producing security.
See Notes to Financial Statements.
47
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK -- 96.7%
AEROSPACE -- 1.9%
Allegheny Teledyne, Inc. 6,395 $ 146,286
Allied Signal, Inc. 20,800 923,000
B.F. Goodrich Co. 2,100 104,212
Boeing Co. 36,892 1,644,000
E.G. & G., Inc. 1,900 57,000
General Dynamics Corp. 5,000 232,500
Lockheed Martin Corp. 7,171 759,230
Northrop Grumman Holdings Corp. 2,600 268,125
Raytheon Co. Class A 1,842 106,145
Raytheon Co. Class B 10,700 632,637
Rockwell International Corp. 7,700 370,081
Textron, Inc. 6,100 437,294
United Technologies Corp. 8,600 795,500
------------
6,476,010
------------
AIR TRANSPORT -- 0.4%
AMR Corp.* 6,800 566,100
Delta Air Lines, Inc. 2,700 348,975
Southwest Airlines Co. 8,550 253,294
U.S. Airways Group, Inc.* 3,600 285,300
------------
1,453,669
------------
ALCOHOLIC BEVERAGES & TOBACCO -- 1.6%
Anheuser-Busch Cos., Inc. 18,100 854,094
Brown-Forman Corp. 2,700 173,475
Coors Adolph Co. 1,200 40,800
Fortune Brands, Inc. 6,700 257,531
Philip Morris Cos., Inc. 89,400 3,520,125
Seagram Co., Ltd. 13,600 556,750
UST, Inc. 6,800 183,600
------------
5,586,375
------------
APPAREL, TEXTILES -- 0.3%
Fruit of the Loom, Inc. Class A* 3,000 99,562
Liz Claiborne, Inc. 2,500 130,625
Nike, Inc. Class B 10,700 520,956
Reebok International, Ltd.* 2,200 60,912
Russell Corp. 1,600 48,300
Springs Industries, Inc. Class A 800 36,900
VF Corp. 4,700 242,050
------------
1,139,305
------------
AUTO RELATED -- 0.5%
Cooper Tire & Rubber Co. 2,300 47,437
Dana Corp. 4,000 214,000
Eaton Corp. 2,900 225,475
Echlin, Inc. 2,000 98,125
Genuine Parts Co. 6,625 228,977
Goodyear Tire & Rubber Co. 6,100 393,069
ITT Industries, Inc. 4,400 164,450
T.R.W., Inc. 4,800 262,200
------------
1,633,733
------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
AUTOS -- 1.7%
Chrysler Corp. 24,000 $ 1,353,000
Ford Motor Co. 44,400 2,619,600
General Motors Corp. 26,400 1,763,850
Navistar International Corp.* 2,700 77,963
------------
5,814,413
------------
BANKS -- 8.5%
Banc One Corp. 26,012 1,451,795
Bank of New York Co., Inc. 13,900 843,556
BankAmerica Corp. 25,676 2,219,369
BankBoston Corp. 10,800 600,750
Bankers Trust Corp. 3,600 417,825
BB&T Corp. 5,300 358,412
Chase Manhattan Corp. 31,168 2,353,184
Citicorp 16,900 2,522,325
Comerica, Inc. 5,850 387,562
Fifth Third Bancorp. 9,250 581,594
First Chicago NBD Corp. 10,813 958,302
First Union Corp. 35,826 2,086,864
Fleet Financial Group, Inc. 10,055 839,592
Huntington Bancshares, Inc. 7,100 237,406
J.P. Morgan & Co., Inc. 6,600 773,025
Keycorp 16,312 581,115
MBNA Corp. 18,437 608,421
Mellon Bank Corp. 9,400 654,475
Mercantile Bancorp, Inc. 4,900 246,837
National City Corp. 12,100 859,100
NationsBank Corp. 34,875 2,667,937
Northern Trust Corp. 4,100 312,625
Norwest Corp. 27,900 1,042,762
PNC Bank Corp. 11,300 608,081
Republic New York Corp. 4,000 251,750
State Street Corp. 5,900 410,050
Summit Bancorp 6,500 308,750
Suntrust Banks, Inc. 7,800 634,237
Synovus Financial Corp. 9,750 231,562
U.S. Bancorp 27,384 1,177,512
Wachovia Corp. 7,600 642,200
Wells Fargo & Co. 3,233 1,192,977
------------
29,061,952
------------
BUSINESS SERVICES -- 1.8%
Ascend Communications, Inc.* 7,500 371,719
Automatic Data Processing, Inc. 10,800 787,050
Cendant Corp.* 30,049 627,273
Ceridian Corp.* 2,800 164,500
Cognizant Corp. 6,000 378,000
Computer Sciences Corp.* 5,800 371,200
Deluxe Corp. 3,200 114,600
Dun & Bradstreet Corp. 6,300 227,587
Ecolab, Inc. 5,000 155,000
FDX Corp.* 5,080 318,770
First Data Corp. 15,800 526,337
H & R Block, Inc. 3,800 160,075
Ikon Office Solutions, Inc. 4,900 71,356
See Notes to Financial Statements.
48
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Interpublic Group of Cos., Inc. 4,650 $ 282,197
Moore Corp., Ltd. 3,500 46,375
National Service Industries, Inc. 1,700 86,487
Oracle Corp.* 36,187 886,581
Service Corp. International 9,300 398,737
Shared Medical Systems Corp. 900 66,094
------------
6,039,938
------------
CASINOS -- 0.1%
Harrah's Entertainment, Inc.* 4,050 94,162
Mirage Resorts, Inc.* 6,900 147,056
------------
241,218
------------
CHEMICALS -- 2.7%
Air Products & Chemicals, Inc. 8,000 320,000
Avery Dennison Corp. 3,900 209,625
Corning, Inc. 8,500 295,375
Dow Chemical Co. 8,400 812,175
E.I. du Pont de Nemours & Co. 41,700 3,111,862
Eastman Chemical Co. 2,900 180,525
F.M.C. Corp.* 1,400 95,462
Great Lakes Chemical Corp. 2,200 86,762
Hercules, Inc. 3,700 152,162
Minnesota Mining & Manufacturing Co. 15,100 1,241,031
Monsanto Co. 21,900 1,223,662
Morton International, Inc. 4,900 122,500
Nalco Chemical Co. 2,500 87,812
P.P.G. Industries, Inc. 6,600 459,112
Praxair, Inc. 6,000 280,875
Rohm & Haas Co. 2,300 239,056
Sealed Air Corp.* 1,447 53,177
Sigma Aldrich Corp. 3,900 136,987
Union Carbide Corp. 4,700 250,862
W.R. Grace & Co.* 2,700 46,069
------------
9,405,091
------------
CONSTRUCTION -- 0.3%
Armstrong World Industries, Inc. 1,500 101,062
Centex Corp. 2,200 83,050
Fleetwood Enterprises, Inc. 1,200 48,000
Fluor Corp. 3,300 168,300
Foster Wheeler Corp. 1,600 34,300
Kaufman & Broad Home Corp. 1,000 31,750
Masco Corp. 6,100 369,050
Owens Corning, Inc. 2,100 85,706
Pulte Corp. 1,600 47,800
Sherwin Williams Co. 6,700 221,937
------------
1,190,955
------------
CONTAINERS -- 0.2%
Ball Corp. 900 36,169
Bemis Co., Inc. 2,100 85,837
Crown Cork & Seal Co., Inc. 5,100 242,250
Owens-Illinois, Inc.* 5,500 246,125
------------
610,381
------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
COSMETICS & SOAP -- 2.6%
Alberto-Culver Co. Class B 2,300 $ 66,700
Avon Products, Inc. 5,000 387,500
Clorox Co. 4,000 381,500
Colgate-Palmolive Co. 10,900 959,200
Gillette Co. 41,400 2,346,862
International Flavors & Fragrances, Inc. 4,000 173,750
Procter & Gamble Co. 49,600 4,516,700
------------
8,832,212
------------
DRUGS -- 9.7%
Abbott Laboratories, Inc. 56,800 2,321,700
Allergan, Inc. 2,400 111,300
Alza Corp.* 3,300 142,725
American Home Products Corp. 48,000 2,484,000
Amgen, Inc.* 9,700 634,137
Bristol-Myers Squibb Co. 36,900 4,241,194
Cardinal Health, Inc. 4,000 375,000
Eli Lilly & Co. 41,000 2,708,562
Johnson & Johnson 49,900 3,680,125
Mallinckrodt, Inc. 2,700 80,156
Merck & Co., Inc. 44,400 5,938,500
Pfizer, Inc. 48,000 5,217,000
Pharmacia & Upjohn, Inc. 18,680 861,615
Schering Plough Corp. 27,100 2,483,037
Warner-Lambert Co. 30,300 2,102,062
------------
33,381,113
------------
ELECTRIC & GAS -- 2.5%
Ameren Corp. 5,200 206,700
American Electric Power Co. 7,000 317,625
Baltimore Gas & Electric Co. 5,400 167,737
Carolina Power & Light Co. 5,500 238,562
Central & South West Corp. 7,800 209,625
Cinergy Corp. 5,836 204,260
Consolidated Edison Inc. 8,700 400,744
Consolidated Natural Gas Co. 3,500 206,062
Dominion Resources, Inc. 6,850 279,137
DTE Energy Co. 5,400 218,025
Duke Energy Corp. 13,261 785,714
Eastern Enterprises 800 34,300
Edison International 14,100 416,831
Entergy Corp. 9,000 258,750
F.P.L. Group, Inc. 6,700 422,100
FirstEnergy Corp. 8,500 261,375
GPU, Inc. 4,500 170,156
Houston Industries, Inc. 10,493 323,971
Niagara Mohawk Power Corp.* 5,800 86,637
Nicor, Inc. 1,900 76,237
Northern States Power Co. 5,400 154,575
Oneok, Inc. 1,100 43,862
P.P.& L. Resources, Inc. 6,100 138,394
Pacific Gas & Electric Co. 14,100 445,031
Pacificorp 10,900 246,612
PECO Energy Co. 8,200 239,337
Peoples Energy Corp. 1,400 54,075
Public Service Enterprise Group, Inc. 8,600 296,162
See Notes to Financial Statements.
49
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
ELECTRIC & GAS (CONTINUED)
Sempra Energy* 4,661 $ 129,364
Sonat, Inc. 4,100 158,362
Southern Co. 25,400 703,262
Texas Utilities Co. 9,107 379,079
Unicom Corp. 8,000 280,500
------------
8,553,163
------------
ELECTRICAL -- 4.1%
CBS Corp. 26,000 825,500
Cooper Industries, Inc. 4,500 247,219
Emerson Electric Co. 16,400 990,150
General Electric Co. 121,400 11,047,400
General Instrument Corp.* 5,400 146,812
Grainger W.W., Inc. 3,600 179,325
Honeywell, Inc. 4,700 392,744
Johnson Controls, Inc. 3,100 177,281
------------
14,006,431
------------
ELECTRONICS -- 3.6%
A.M.P., Inc. 8,096 278,300
Advanced Micro Devices, Inc.* 5,200 88,725
Andrew Corp.* 3,287 59,166
Intel Corp. 60,700 4,495,594
KLA Tencor Corp.* 3,300 91,369
LSI Logic Corp.* 5,200 119,925
Lucent Technologies, Inc. 48,272 4,015,627
Micron Technology, Inc.* 7,800 193,537
Motorola, Inc. 22,100 1,161,631
National Semiconductor Corp.* 5,600 73,850
Parametric Technology Corp.* 9,400 254,387
Perkin Elmer Corp. 1,700 105,719
Scientific Atlanta, Inc. 3,100 78,662
Tektronix, Inc. 1,950 68,981
Tellabs, Inc.* 6,900 493,781
Texas Instruments, Inc. 14,400 839,700
Thomas & Betts Corp. 2,000 98,500
------------
12,517,454
------------
ENERGY SERVICES -- 0.6%
Baker Hughes, Inc. 6,200 214,287
Halliburton Co. 9,700 432,256
Helmerich & Payne, Inc. 2,000 44,500
Rowan Cos., Inc.* 3,400 66,087
Schlumberger, Ltd. 18,300 1,250,119
Western Atlas, Inc.* 2,100 178,237
------------
2,185,486
------------
FOOD & BEVERAGES -- 5.6%
Archer Daniels Midland Co. 20,553 398,214
Bestfoods, Inc. 10,600 615,463
Campbell Soup Co. 16,900 897,813
Coca Cola Co. 91,700 7,840,350
Conagra, Inc. 17,400 551,363
General Mills, Inc. 5,800 396,575
Heinz H.J. Co. 13,500 757,688
Hershey Foods Corp. 5,300 365,700
Kellogg Co. 15,200 570,950
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
FOOD & BEVERAGES (CONTINUED)
Pepsico, Inc. 56,000 $ 2,306,500
Pioneer Hi-Bred International, Inc. 9,000 372,375
Quaker Oats Co. 5,100 280,181
Ralston Purina Group 3,900 455,569
Sara Lee Corp. 17,700 990,094
Unilever N.V. 23,600 1,862,925
Wm. Wrigley Jr., Co. 4,400 431,200
------------
19,092,960
------------
FOREST PRODUCTS & PAPER -- 1.0%
Boise Cascade Corp. 1,900 62,225
Champion International, Corp. 3,700 181,994
Fort James Corp. 7,600 338,200
Georgia Pacific Corp. 3,400 200,388
International Paper Co. 11,107 477,601
Kimberly-Clark Corp. 20,228 927,960
Louisiana-Pacific Corp. 4,300 78,475
Mead Corp. 3,900 123,825
Potlatch Corp. 900 37,800
Stone Container Corp.* 3,954 61,781
Temple Inland, Inc. 2,200 118,525
Union Camp Corp. 2,600 129,025
Westvaco Corp. 4,000 113,000
Weyerhaeuser Co. 7,400 341,788
Willamette Industries, Inc. 4,100 131,200
------------
3,323,787
------------
HEALTH CARE SERVICES -- 1.8%
Bausch & Lomb, Inc. 2,000 100,250
Baxter International, Inc. 10,300 554,269
Becton, Dickinson & Co. 4,500 349,313
Biomet, Inc. 4,300 141,900
Boston Scientific Corp.* 7,200 515,700
C.R. Bard, Inc. 2,300 87,544
Columbia HCA Healthcare Corp. 23,882 695,563
Guidant Corp. 5,500 392,219
HBO & Co. 15,200 535,800
Healthsouth Corp.* 14,500 386,969
Humana, Inc.* 6,000 187,125
Manor Care, Inc. 2,350 90,328
Medtronic, Inc. 17,300 1,102,875
Millipore Corp. 1,600 43,600
St. Jude Medical, Inc.* 3,400 125,163
Tenet Healthcare Corp.* 11,300 353,125
U.S. Surgical Corp. 2,800 127,750
United Healthcare Corp. 7,000 444,500
------------
6,233,993
------------
HOTELS & RESTAURANTS -- 0.8%
Darden Restaurants, Inc. 6,100 96,838
Hilton Hotels Corp. 9,200 262,200
Marriott International Inc. Class A 9,400 304,325
McDonald's Corp. 25,400 1,752,600
Tricon Global Restaurants, Inc.* 5,630 178,401
Wendy's International, Inc. 5,100 119,850
------------
2,714,214
------------
See Notes to Financial Statements.
50
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
HOUSEHOLD GOODS -- 0.3%
Black & Decker Corp. 3,700 $ 225,700
Maytag Corp. 3,900 192,563
Newell Co. 5,900 293,894
Rubbermaid, Inc. 5,900 195,806
Tupperware Corp. 2,500 70,313
Whirlpool Corp. 2,900 199,375
------------
1,177,651
------------
INSURANCE -- 4.9%
Aetna, Inc. 5,453 415,110
Allstate Corp. 15,770 1,443,941
American General Corp. 9,396 668,878
American International Group, Inc. 25,912 3,783,152
Aon Corp. 6,200 435,550
Chubb Corp. 6,300 506,363
Cigna Corp. 8,100 558,900
Cincinnati Financial Corp. 6,000 230,250
Conseco, Inc. 6,900 322,575
General Re Corp. 2,900 735,150
Hartford Financial Services Group, Inc. 4,400 503,250
Jefferson-Pilot Corp. 3,900 225,956
Lincoln National Corp. 3,800 347,225
Loews Corp. 4,200 365,925
Marsh & McLennan Cos., Inc. 9,450 571,134
MBIA, Inc. 3,600 269,550
MGIC Investment Corp. 4,200 239,663
Progressive Corp. 2,700 380,700
Providian Financial Corp. 3,700 290,681
Safeco Corp. 5,200 235,950
St. Paul Cos., Inc. 8,568 360,392
SunAmerica, Inc. 7,200 413,550
Torchmark Corp. 5,200 237,900
Transamerica Corp. 2,400 276,300
Travelers Group, Inc. 42,492 2,576,078
UNUM Corp. 5,100 283,050
------------
16,677,173
------------
LEISURE -- 0.2%
Brunswick Corp. 3,900 96,525
Hasbro, Inc. 4,650 182,803
Jostens, Inc. 1,100 26,538
Mattel, Inc. 10,737 454,309
------------
760,175
------------
MACHINERY & EQUIPMENT -- 1.8%
Aeroquip Vickers, Inc. 800 46,700
Applied Materials, Inc.* 13,400 395,300
Briggs & Stratton Corp. 1,000 37,438
Case Corp. 2,800 135,100
Caterpillar, Inc. 13,700 724,388
Cincinnati Milacron, Inc. 1,600 38,900
Crane Co. 1,900 92,269
D.S.C. Communication Corp.* 4,300 128,463
Deere & Co. 9,300 491,738
Dover Corp. 8,200 280,850
Dresser Industries, Inc. 6,500 286,406
General Signal Corp. 2,000 72,000
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
MACHINERY & EQUIPMENT (CONTINUED)
Harnischfeger Industries, Inc. 1,800 $ 50,963
Illinois Tool Works, Inc. 9,200 613,525
Ingersoll Rand Co. 6,100 268,781
McDermott International, Inc. 2,200 75,763
Nacco Industries, Inc. 300 38,775
Pall Corp. 4,733 97,027
Parker-Hannifin Corp. 4,225 161,078
Raychem Corp. 3,200 94,600
Snap-On, Inc. 2,400 87,000
Stanley Works, Inc. 3,300 137,156
Tenneco, Inc. 6,300 239,794
Thermo Electron Corp.* 5,600 191,450
Timken Co. 2,500 77,031
Tyco International Ltd. 21,200 1,335,600
------------
6,198,095
------------
MEDIA -- 3.2%
Clear Channel Communications, Inc.* 4,500 491,063
Comcast Corp. Class A 4,800 190,200
Comcast Corp. Special Class A Non-Voting 8,100 328,556
Dow Jones & Co., Inc. 3,800 211,850
Gannett Co., Inc. 10,500 746,156
King World Productions, Inc.* 2,200 56,100
Knight-Ridder, Inc. 3,200 176,200
McGraw-Hill Cos., Inc. 3,700 301,781
Mediaone Group* 22,400 984,200
Meredith Corp. 1,900 89,181
New York Times Co. 3,500 277,375
Omnicom Group, Inc. 6,200 309,225
R.R. Donnelley & Sons, Inc. 5,600 256,200
Tele-Communications, Inc. Class A* 18,652 715,771
Time Warner, Inc. 21,400 1,828,363
Times Mirror Co. 3,300 207,488
Tribune Co. 4,700 323,419
Viacom, Inc. Class A* 560 32,760
Viacom, Inc. Class B* 11,943 695,680
Walt Disney Co. 24,900 2,616,056
------------
10,837,624
------------
METALS -- 0.7%
Alcan Aluminium Ltd. 8,400 232,050
Aluminum Co. of America 6,400 422,000
Armco, Inc.* 3,200 20,400
Asarco, Inc. 1,700 37,825
Barrick Gold Corp. 14,100 270,544
Battle Mountain Gold Co. 9,000 53,438
Bethlehem Steel Corp.* 4,500 55,969
Cyprus AMAX Minerals Co. 3,650 48,363
Engelhard Corp. 5,687 115,162
Freeport-McMoran Copper & Gold, Inc. 7,100 107,831
Homestake Mining Co. 5,800 60,175
Inco, Ltd. 6,600 89,925
Newmont Mining Corp. 5,774 136,411
Nucor Corp. 3,400 156,400
Phelps Dodge Corp. 2,200 125,813
Placer Dome, Inc. 9,400 110,450
Reynolds Metals Co. 2,700 151,031
See Notes to Financial Statements.
51
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
METALS (CONTINUED)
USX-U.S. Steel Group, Inc. 3,300 $ 108,900
Worthington Industries, Inc. 3,850 57,750
------------
2,360,437
------------
MISCELLANEOUS FINANCE -- 3.8%
American Express Co. 17,200 1,960,800
Associates First Capital Corp. Class A 12,741 979,464
Bear Stearns Cos., Inc. 4,400 250,250
Beneficial Corp. 2,000 306,375
Capital One Financial Corp.* 2,500 310,469
Charles Schwab Corp. 9,750 316,875
Countrywide Credit Industries, Inc. 4,100 208,075
Equifax, Inc. 5,500 199,719
Federal Home Loan Mortgage Corp. 25,600 1,204,800
Federal National Mortgage Association 39,300 2,387,475
Franklin Resources, Inc. 9,300 502,200
Green Tree Financial Corp. 5,000 214,063
Household International, Inc. 11,700 582,075
Lehman Brothers Holdings, Inc. 3,900 302,494
Merrill Lynch & Co., Inc. 12,300 1,134,675
Morgan Stanley Dean Witter & Co. 21,869 1,998,280
SLM Holding Corp. 6,500 318,500
------------
13,176,589
------------
OFFICE EQUIPMENT -- 8.8%
3Com Corp.* 12,800 392,800
Adobe Systems, Inc. 2,800 118,825
Apple Computer, Inc.* 5,000 143,438
Autodesk, Inc. 1,900 73,031
Bay Networks, Inc.* 7,800 251,550
Cabletron Systems, Inc.* 6,100 81,969
Cisco Systems, Inc.* 37,700 3,470,756
Compaq Computer Corp. 61,021 1,731,485
Computer Associates International, Inc. 20,162 1,120,251
Data General Corp.* 1,700 25,394
Dell Computer, Inc.* 24,200 2,244,550
EMC Corp.* 18,300 820,069
Gateway 2000, Inc.* 5,600 283,500
Harris Corp. 2,900 129,594
Hewlett Packard Co. 38,400 2,299,200
International Business Machines Corp. 36,000 4,133,250
Microsoft Corp.* 90,300 9,786,263
Novell, Inc.* 13,700 174,675
Pitney Bowes, Inc. 10,100 486,063
Seagate Technology, Inc.* 9,000 214,313
Silicon Graphics, Inc.* 6,954 84,317
Sun Microsystems, Inc.* 13,800 599,438
Unisys Corp.* 9,300 262,725
Xerox Corp. 12,100 1,229,663
------------
30,157,119
------------
OIL & GAS -- 6.7%
Amerada Hess Corp. 3,500 190,094
Amoco Corp. 36,000 1,498,500
Anadarko Petroleum Corp. 2,200 147,813
Apache Corp. 3,300 103,950
Ashland, Inc. 2,900 149,713
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
OIL & GAS (CONTINUED)
Atlantic Richfield Co. 11,800 $ 921,875
Burlington Resources, Inc. 6,482 279,131
Chevron Corp. 24,200 2,010,113
Coastal Corp. 3,900 272,269
Columbia Energy Group 3,150 175,219
Enron Corp. 12,200 659,563
Exxon Corp. 91,400 6,517,963
Kerr-McGee Corp. 1,800 104,175
Mobil Corp. 28,900 2,214,463
Occidental Petroleum Corp. 12,500 337,500
Oryx Energy Co.* 4,100 90,713
Pennzoil Co. 1,800 91,125
Phillips Petroleum Co. 9,700 467,419
Royal Dutch Petroleum Co. 79,100 4,335,669
Sun Co., Inc. 2,655 103,047
Texaco, Inc. 20,700 1,235,531
Unocal Corp. 9,100 325,325
USX-Marathon Group, Inc. 10,600 363,713
Williams Cos., Inc. 15,200 513,000
------------
23,107,883
------------
PHOTOGRAPHIC -- 0.3%
Eastman Kodak Co. 12,000 876,750
Polaroid Corp. 1,800 64,013
------------
940,763
------------
POLLUTION CONTROL -- 0.3%
Browning-Ferris Industries, Inc. 7,300 253,675
Laidlaw, Inc. 12,500 152,344
Waste Management, Inc. 16,794 587,790
------------
993,809
------------
RAILROADS -- 0.6%
Burlington Northern Santa Fe Corp. 5,731 562,713
CSX Corp. 8,300 377,650
Norfolk Southern Corp. 13,900 414,394
Union Pacific Corp. 9,100 401,538
Union Pacific Resources Group, Inc. 9,351 164,227
------------
1,920,522
------------
RETAIL -- 5.0%
American Greetings Corp. Class A 2,800 142,625
Autozone, Inc.* 5,600 178,850
Circuit City Stores, Inc. 3,800 178,125
Consolidated Stores Corp.* 4,000 145,000
Costco Cos., Inc.* 7,821 493,212
CVS Corp. 14,000 545,125
Dayton Hudson Corp. 16,000 776,000
Dillard's Inc. Class A 4,200 174,038
Federated Department Stores, Inc.* 7,700 414,356
Gap, Inc. 14,850 915,131
Harcourt General, Inc. 2,800 166,600
Home Depot, Inc. 26,999 2,242,604
K Mart Corp.* 18,000 346,500
Limited, Inc. 8,313 275,368
Longs Drug Stores, Inc. 1,400 40,425
Lowe's Cos., Inc. 12,800 519,200
See Notes to Financial Statements.
52
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
RETAIL (CONTINUED)
May Department Stores Co. 8,500 $ 556,750
Mercantile Stores Co., Inc. 1,400 110,513
Nordstrom, Inc. 2,800 216,125
Penney, J.C. Co. 9,200 665,275
Pep Boys-Manny, Moe & Jack 2,400 45,450
Rite Aid Corp. 9,600 360,600
Sears, Roebuck & Co. 14,500 885,406
Tandy Corp. 3,800 201,638
TJX Cos., Inc. 12,400 299,150
Toys "R" Us, Inc.* 10,500 247,406
Venator Group Inc.* 5,200 99,450
Wal-Mart Stores, Inc. 83,100 5,048,325
Walgreen Co. 18,200 751,888
------------
17,041,135
------------
RETAIL - FOOD -- 0.6%
Albertson's, Inc. 9,100 471,494
American Stores Co. 10,100 244,294
Giant Food, Inc. Class A 2,400 103,350
Great Atlantic & Pacific Tea Co., Inc. 1,100 36,369
Kroger Co.* 9,400 403,025
Supervalu, Inc. 2,200 97,625
Sysco Corp. 13,000 333,125
Winn-Dixie Stores, Inc. 5,600 286,650
------------
1,975,932
------------
TELEPHONES -- 6.8%
AirTouch Communications, Inc.* 20,800 1,215,500
Alltel Corp. 6,800 316,200
Ameritech Corp. 40,400 1,812,950
AT&T Corp. 60,242 3,441,324
Bell Atlantic Corp. 57,604 2,628,183
BellSouth Corp. 36,600 2,456,775
Frontier Corp. 6,400 201,600
GTE Corp. 35,300 1,963,563
MCI Communications Corp. 25,700 1,492,206
Nextel Communications, Inc. Class A* 9,700 241,288
Northern Telecom, Ltd. 19,400 1,100,950
SBC Communications, Inc. 67,808 2,712,320
Sprint Corp. 15,900 1,120,950
US West, Inc. Communications Group 18,411 865,317
WorldCom, Inc.* 37,600 1,816,550
------------
23,385,676
------------
THRIFT INSTITUTIONS -- 0.3%
Ahmanson (H.F.) & Co. 4,100 291,100
Golden West Financial Corp. 2,100 223,256
Washington Mutual, Inc. 14,205 616,142
------------
1,130,498
------------
TRUCKING -- 0.1%
Cummins Engine Co., Inc. 1,600 82,000
Paccar, Inc. 3,090 160,873
Ryder System, Inc. 3,000 94,688
------------
337,561
------------
TOTAL COMMON STOCK
(Cost $188,743,230) 331,672,495
------------
SHARES VALUE(DAGGER)
--------- ------------
CONVERTIBLE PREFERRED STOCK -- 0.0%
CONTAINERS -- 0.0%
Sealed Air Corp., $2.00, 04/01/18,
Series A
(Cost $42,011) 1,282 $ 53,844
------------
COUPON PAR
RATE MATURITY (000)
- ----------- -------- -------
U.S. TREASURY OBLIGATIONS -- 0.3%
U.S. Treasury Bills**
5.080% 08/20/98 $500 496,668
5.534% 08/20/98 600 596,002
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,092,089) 1,092,670
------------
SHARES
----------
TEMPORARY INVESTMENTS -- 3.3%
Dreyfus Cash Management Plus #719 3,871,439 3,871,439
Goldman Sachs Financial Square
Money Market Portfolio 3,770,549 3,770,549
J.P. Morgan Institutional Prime
Money Market Portfolio 3,775,656 3,775,656
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $11,417,644) 11,417,644
------------
TOTAL INVESTMENTS -- 100.3%
(Cost $201,294,974) 344,236,653
------------
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (0.3% ) (1,049,236)
------------
NET ASSETS -- 100.0%
Applicable to 12,154,502 and 336,222
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 7) $343,187,417
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($333,949,948/12,154,502) $27.48
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($9,237,469/336,222) $27.47
======
- -----------
(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 1998 41 $212,400
== ========
See Notes to Financial Statements.
53
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK -- 47.2%
AEROSPACE -- 1.4%
Alliant Techsystems, Inc.* 1,100 $ 69,575
Esterline Technologies Corp.* 7,000 143,937
Litton Industries, Inc.* 7,875 464,625
Northrop Grumman Holdings Corp. 2,400 247,500
------------
925,637
------------
AIR TRANSPORT -- 1.7%
AMR Corp.* 8,400 699,300
Continental Airlines, Inc. Class B* 2,900 176,537
Delta Air Lines, Inc. 2,000 258,500
------------
1,134,337
------------
ALCOHOLIC BEVERAGES & TOBACCO -- 0.7%
Philip Morris Cos., Inc. 5,200 204,750
Universal Corp. 7,100 265,362
------------
470,112
------------
APPAREL, TEXTILES -- 0.6%
Guilford Mills, Inc. 1,800 36,000
Kellwood Co. 600 21,450
Oxford Industries, Inc. 700 24,456
VF Corp. 5,700 293,550
------------
375,456
------------
AUTO RELATED -- 0.3%
ITT Industries, Inc. 2,025 75,684
Mascotech, Inc. 900 21,600
Superior Industries International, Inc. 3,600 101,475
------------
198,759
------------
AUTOS -- 1.4%
Ford Motor Co. 15,800 932,200
------------
BANKS -- 2.3%
Bankers Trust Corp. 900 104,456
Chase Manhattan Corp. 8,400 634,200
Comerica, Inc. 2,350 155,687
Compass Bancshares, Inc. 1,800 80,775
Everen Capital Corp. 2,600 72,800
GBC Bancorp 3,200 84,800
Old Kent Financial Corp. 2,005 72,073
One Valley Bancorp 750 27,281
Southtrust Corp. 7,800 339,300
------------
1,571,372
------------
BUSINESS SERVICES -- 1.1%
Aviall, Inc.* 5,400 73,912
Bowne & Co., Inc. 1,300 58,500
Computer Sciences Corp.* 575 36,800
Franklin Covey Co.* 1,100 21,175
Inacom Corp.* 2,300 73,025
Kelly Services, Inc. Class A 2,800 98,700
Selective Insurance Group, Inc. 1,600 35,800
Viad Corp. 13,600 377,400
------------
775,312
------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
CASINOS -- 0.2%
Grand Casinos, Inc.* 7,900 $ 132,325
------------
CHEMICALS -- 0.4%
Georgia Gulf Corp. 1,400 31,937
Lyondell Petrochemical Co. 4,500 136,969
Robbins & Myers, Inc. 2,700 78,469
------------
247,375
------------
CONSTRUCTION -- 2.0%
Centex Corp. 18,600 702,150
Fleetwood Enterprises, Inc. 8,100 324,000
Modine Manufacturing Co. 600 20,775
Vulcan Materials Co. 1,600 170,700
Webb Corp. 5,200 134,875
------------
1,352,500
------------
CONTAINERS -- 0.0%
Libbey, Inc. 700 26,819
------------
DRUGS -- 2.3%
Bergen Brunswig Corp. Class A 9,400 435,925
Bristol-Myers Squibb Co. 4,000 459,750
McKesson Corp. 4,500 365,625
PharMerica, Inc.* 22,299 267,600
------------
1,528,900
------------
ELECTRIC & GAS -- 2.7%
Central Hudson Gas & Electric Corp. 1,500 68,812
Cleco Corp. 1,100 32,725
Eastern Utilities Associates 3,700 97,125
Energy East Corp. 14,900 620,212
GPU, Inc. 14,500 548,281
Interstate Energy Corp. 1,482 48,165
MarketSpan Corp. 10,480 313,745
Public Service Co. of New Mexico 4,000 90,750
Washington Water Power Co. 1,600 35,900
------------
1,855,715
------------
ELECTRONICS -- 0.8%
Arrow Electronics, Inc.* 5,100 110,925
Marshall Industries, Inc.* 3,600 98,100
NeoMagic Corp.* 3,500 54,031
Park Electrochemical Corp. 1,450 30,631
SCI Systems, Inc.* 2,900 109,112
Superior Telecom, Inc. 2,125 88,453
Tektronix, Inc. 1,850 65,444
------------
556,696
------------
ENERGY SERVICES -- 0.2%
Tuboscope, Inc.* 3,500 69,125
Zeigler Coal Holding Co. 4,700 80,487
------------
149,612
------------
See Notes to Financial Statements.
54
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
FOOD & BEVERAGES -- 1.5%
Dean Foods Co. 9,900 $ 543,881
Dole Food Co., Inc. 4,500 223,594
Smithfield Foods, Inc.* 9,200 277,150
------------
1,044,625
------------
FOREST PRODUCTS & PAPER -- 0.3%
Georgia Pacific Timber Group 7,800 179,887
Schweitzer-Mauduit International, Inc. 1,800 52,200
------------
232,087
------------
HEALTH CARE SERVICES -- 1.7%
AmeriSource Health Corp. Class A* 1,450 95,247
Arterial Vascular Engineering, Inc.* 3,500 124,906
Beverly Enterprises, Inc.* 28,500 393,656
Biomet, Inc. 4,400 145,200
Cooper Cos., Inc.* 2,500 91,094
Datascope Corp.* 2,600 69,062
Dexter Corp. 900 28,631
Lincare Holdings, Inc.* 3,600 151,200
Mariner Health Group, Inc.* 1,700 28,263
------------
1,127,259
------------
HOTELS & RESTAURANTS -- 0.6%
Outback Steakhouse, Inc.* 9,100 354,331
Red Roof Inns, Inc.* 1,900 32,181
------------
386,512
------------
HOUSEHOLD GOODS -- 0.1%
La-Z-Boy, Inc. 600 33,900
------------
INSURANCE -- 4.5%
Allstate Corp. 3,750 343,359
Chartwell Re Corp. 900 26,494
Cigna Corp. 5,900 407,100
Conseco, Inc. 8,550 399,712
Equitable Cos., Inc. 12,800 959,200
First American Financial Corp. 2,450 220,500
Gallagher (Arthur J.) & Co. 3,900 174,525
Old Republic International Corp. 14,175 415,505
Travelers Group, Inc. 2,500 151,562
------------
3,097,957
------------
LEISURE -- 0.5%
Brunswick Corp. 5,500 136,125
Hasbro, Inc. 5,950 233,909
------------
370,034
------------
MACHINERY & EQUIPMENT -- 1.3%
Aeroquip Vickers, Inc. 4,050 236,419
Commercial Intertech Corp. 2,100 38,062
Gardner Denver Machinery, Inc.* 3,500 96,687
Gleason Corp. 1,775 49,922
Timken Co. 8,600 264,988
Trinity Industries, Inc. 5,100 211,650
------------
897,728
------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
MEDIA -- 0.6%
Media General, Inc. Class A 1,200 $ 58,500
Omnicom Group, Inc. 6,900 344,138
------------
402,638
------------
METALS -- 0.5%
Cleveland Cliffs, Inc. 700 37,538
Reliance Steel & Aluminum Corp. 1,500 57,938
USX-U.S. Steel Group, Inc. 7,000 231,000
------------
326,476
------------
MISCELLANEOUS FINANCE -- 3.7%
Associates First Capital Corp. Class A 4,825 370,922
Bear Stearns Cos., Inc. 10,400 591,500
Countrywide Credit Industries, Inc. 5,600 284,200
Eaton Vance Corp. 1,000 46,313
Federal National Mortgage Association 7,100 431,325
Lehman Brothers Holdings, Inc. 7,700 597,231
Morgan Stanley Dean Witter & Co. 2,100 191,888
------------
2,513,379
------------
OFFICE EQUIPMENT -- 2.9%
Comdisco, Inc. 6,100 115,900
Dell Computer, Inc.* 4,000 371,000
Gateway 2000, Inc.* 6,850 346,781
Harris Corp. 3,950 176,516
HMT Technology Corp.* 8,200 68,163
International Business Machines Corp. 2,150 246,847
Lexmark International Group, Inc. Class A* 4,500 274,500
Storage Technology Corp.* 1,400 60,725
Systems & Computer Technology Corp.* 4,000 107,500
Tech Data Corp.* 5,600 240,100
------------
2,008,032
------------
OIL & GAS -- 2.3%
Exxon Corp. 3,700 263,856
Sun Co., Inc. 14,900 578,306
Tesoro Petroleum Corp.* 700 11,113
Ultramar Diamond Shamrock Corp. 9,000 284,063
USX-Marathon Group, Inc. 10,500 360,281
Washington Gas Light Corp. 1,900 50,825
------------
1,548,444
------------
RETAIL -- 3.2%
Ames Department Stores, Inc.* 1,800 47,363
BJ's Wholesale Club, Inc.* 6,250 253,906
Compucom Systems, Inc.* 3,200 20,800
Dayton Hudson Corp. 9,100 441,350
Footstar, Inc.* 3,700 177,600
Lands' End, Inc.* 2,400 75,900
Ross Stores, Inc. 4,700 202,100
Tandy Corp. 7,400 392,663
TJX Cos., Inc. 23,800 574,175
------------
2,185,857
------------
See Notes to Financial Statements.
55
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
RETAIL - FOOD -- 1.3%
Kroger Co.* 6,000 $ 257,250
Safeway, Inc.* 16,000 651,000
------------
908,250
------------
TELEPHONES -- 2.9%
AT&T Corp. 13,100 748,338
Bell Atlantic Corp. 7,800 355,875
SBC Communications, Inc. 6,400 256,000
Southern New England Telecommunications
Corp. 1,900 124,450
Telefonos de Mexico S.A. ADR 4,100 197,056
US West, Inc. Communications Group 6,200 291,400
------------
1,973,119
------------
THRIFT INSTITUTIONS -- 1.0%
Dime Bancorp, Inc. 11,200 335,300
Golden West Financial Corp. 3,100 329,569
Peoples Heritage Financial Group, Inc. 800 18,900
------------
683,769
------------
TRUCKING -- 0.2%
Paccar, Inc. 3,275 170,505
------------
TOTAL COMMON STOCK
(Cost $25,708,825) 32,143,698
------------
COUPON PAR
RATE MATURITY (000)
- ----------- -------- -------
ASSET-BACKED SECURITIES -- 5.8%
Banco Nacional de Mexico, S.A.
Series 1996-A, Class A1
6.250% 12/01/03 $ 375 376,069
BankAmerica Manufactured Housing
Contract Series 1998-2, Class B1
7.930% 11/10/28 425 426,328
Case Equipment Loan Trust
Series 1997-A, Class B
6.700% 03/15/04 500 512,207
First Plus Home Loan Trust Series
1997-3, Class A6
7.080% 07/10/17 285 293,167
Green Tree Financial Corp. Series
1997-4, Class A5
6.880% 02/15/29 650 662,152
Rental Car Funding Corp. Series
1997-1, Class A3
6.600% 09/25/07 1,000 1,015,938
Team Fleet Financing Corp.
Series 1997-1, Class A
7.350% 05/15/03 375 388,489
World Omni Automobile Lease
Series 1997-A, Class A4
6.900% 06/25/03 275 282,476
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $3,875,753) 3,956,826
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 14.7%
Asset Securitization Corp.
Series 1997-D4, Class PS1 IO
1.012% 04/14/29 $6,324 $ 477,290
Asset Securitization Corp.
Series 1997-D5, Class PS1 IO
1.378% 02/14/41 2,977 317,253
Chase Commercial Mortgage Securities
Corp. Series 1997-1, Class A1
7.270% 07/19/04 703 727,337
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
7.315% 05/25/28 590 605,672
Federal Home Loan Mortgage Corp.
Pool #1897 Class G
7.250% 03/15/22 695 714,633
Federal National Mortgage Association
Series 110, Class 2 IO
9.000% 11/25/19 750 188,487
Federal National Mortgage Association
Series 145, Class 1 PO
10.161% 06/25/22 758 624,682
Federal National Mortgage Association
Series 1993-167, Class SL
6.769% 01/25/22 473 462,459
Federal National Mortgage Association
Series 1993-210, Class S
10.094% 11/25/23 285 265,264
Federal National Mortgage Association
Series 1996-53, Class PE
6.500% 11/18/10 800 819,311
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 3,770 164,936
Federal National Mortgage Association
Series 1997-84, Class PL IO
6.500% 02/25/09 2,815 478,550
Federal National Mortgage Association
Series G-18, Class Z
8.750% 06/25/21 629 676,774
Federal National Mortgage Association
Series G97-1, Class K
6.750% 02/18/04 1,000 1,028,036
Federal National Mortgage Association
Series X-13, Class G
6.500% 08/25/22 845 858,689
GE Capital Mortgage Services, Inc.
Series 1994-10, Class A23
6.500% 03/25/24 652 636,581
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 475 479,058
Residential Funding Mortgage Security I
Series 1996-S4, Class A13
7.250% 02/25/26 488 498,435
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $9,793,306) 10,023,447
------------
See Notes to Financial Statements.
56
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
MORTGAGE-BACKED SECURITIES -- 7.3%
Federal National Mortgage Association
Pool #250888
7.000% 04/01/12 $1,698 $ 1,730,440
Federal National Mortgage Association
Pool #303948
7.500% 06/01/26 1,476 1,515,622
Federal National Mortgage Association
Pool #345739
7.500% 03/01/27 89 91,283
Federal National Mortgage Association
Pool #363317
7.500% 11/01/26 32 33,020
Federal National Mortgage Association
Pool #368941
7.500% 12/01/26 493 505,793
Federal National Mortgage Association
Pool #371323
7.500% 03/01/27 387 397,796
Government National Mortgage Association
Pool #354675
6.500% 10/15/23 696 695,204
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $4,849,452) 4,969,158
------------
CORPORATE BONDS -- 10.2%
ELECTRIC -- 0.8%
Public Service Co. of Colorado
6.600% 02/01/01 500 509,375
------------
FINANCE - BANK -- 1.2%
BankBoston Corp.
7.000% 09/15/07 400 420,000
National City Capital Trust I
6.750% 06/01/99 400 402,500
------------
822,500
------------
FINANCE - NON-BANK -- 2.4%
American General Institutional Capital
Securities Series A
7.570% 12/01/45 90 97,088
Associates Corp. N.A. Euro Bond
6.875% 06/20/02 190 194,513
Lehman Brothers Holdings, Inc.
8.800% 03/01/15 250 298,438
PDVSA Finance, Ltd. Series 1998-1B
6.650% 02/15/06 130 128,213
Racers QHEL Series 1997, Class A-1
9.499% 05/15/17 430 435,375
Xerox Credit Corp. Euro Bond
5.400% 09/11/00 500 493,750
------------
1,647,377
------------
INDUSTRIAL -- 4.5%
Air Products & Chemicals, Inc.
6.862% 10/25/03 535 551,719
Boston University
7.625% 07/15/97 120 137,100
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
CORPORATE BONDS (CONTINUED)
INDUSTRIAL (CONTINUED)
Ford Motor Co.
7.400% 11/01/46 $ 210 $ 233,100
General Motors Corp.
6.750% 05/01/28 420 425,775
James River Corp.
6.700% 11/15/03 300 305,250
Sears, Roebuck Acceptance Corp.
6.020% 02/20/03 400 397,000
Walt Disney Co.
6.375% 03/30/01 500 507,500
WMX Technologies, Inc.
7.100% 08/01/26 305 312,625
Xerox Capital Trust I
8.000% 02/01/27 190 207,575
------------
3,077,644
------------
OTHER UTILITIES -- 0.5%
KN Energy, Inc.
6.450% 03/01/03 310 313,100
------------
TRANSPORTATION -- 0.8%
CSX Corp.
7.250% 05/01/27 535 573,788
------------
TOTAL CORPORATE BONDS
(Cost $6,779,981) 6,943,784
------------
SUPRANATIONAL BONDS -- 1.2%
African Development Bank
(Cost $786,798)
7.750% 12/15/01 770 815,238
------------
YANKEE BONDS -- 3.7%
Cable & Wireless Communications
Notes
6.625% 03/06/05 80 80,900
Empresa Nacional Electric
7.750% 07/15/08 300 299,250
Export-Import Bank Korea
6.500% 11/15/06 325 257,156
Glaxo Wellcome P.L.C. Euro Bond
6.125% 01/25/06 500 505,000
Hydro-Quebec
8.050% 07/07/24 545 650,594
Korea Development Bank
7.375% 09/17/04 90 72,675
Korea Electric Power Global
6.375% 12/01/03 150 119,438
United Utilities P.L.C.
6.450% 04/01/08 500 503,750
------------
TOTAL YANKEE BONDS
(Cost $2,501,176) 2,488,763
------------
See Notes to Financial Statements.
57
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
U.S. TREASURY OBLIGATIONS -- 2.6%
U.S. TREASURY BILLS** -- 0.1%
5.010% 10/01/98 $ 50 $ 49,365
------------
U.S. TREASURY BONDS -- 0.8%
8.875% 08/15/17 436 594,011
------------
U.S. TREASURY NOTES -- 1.7%
5.875% 08/31/99 150 150,630
6.625% 06/30/01 160 164,688
6.250% 01/31/02 140 143,136
7.875% 11/15/04 330 370,676
6.500% 05/15/05 130 137,270
6.500% 10/15/06 175 185,787
------------
1,152,187
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,779,229) 1,795,563
------------
MUNICIPAL BONDS -- 0.7%
Massachusetts State Turnpike Authority
Metropolitan Highway System
Revenue Bonds Series A
5.000% 01/01/37 170 163,545
New York City Municipal Water Financing
Authority Revenue Bonds
Series B
5.250% 06/15/29 340 340,000
------------
TOTAL MUNICIPAL BONDS
(Cost $492,067) 503,545
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 5.7%
Dreyfus Cash Management Plus #719 1,287,191 1,287,191
Goldman Sachs Financial Square
Money Market Portfolio 1,287,447 1,287,447
J.P. Morgan Institutional Prime
Money Market Portfolio 1,296,943 1,296,943
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,871,581) 3,871,581
------------
TOTAL INVESTMENTS -- 99.1%
(Cost $60,438,168) 67,511,603
------------
VALUE(DAGGER)
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.9% $ 602,643
-----------
NET ASSETS -- 100.0%
Applicable to 4,205,904 and 120,977 shares
of beneficial interest outstanding of
Institutional Class and Class A, respectively,
$.001 par value (Note 7) $68,114,246
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($66,209,890/4,205,904) $15.74
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($1,904,356/120,977) $15.74
======
- ----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
**Security pledged as collateral for futures contracts.
ADR -- American Depository Receipt.
IO -- Interest Only Security.
PO -- Principal Only Security.
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
--------- ------------
Futures Contracts -- Long Position
U.S. Treasury Notes, September 1998 16 $(1,500)
== =======
See Notes to Financial Statements.
58
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK -- 90.9%
ARGENTINA -- 1.1%
Telefonica de Argentina S.A. ADR 35,000 $ 1,135,313
Transportadora de Gas del Sur S.A. ADR 90,000 1,035,000
------------
2,170,313
------------
AUSTRALIA -- 1.9%
Broken Hill Proprietary Co., Ltd. 183,500 1,551,079
National Australia Bank, Ltd. 161,754 2,133,535
------------
3,684,614
------------
AUSTRIA -- 2.2%
Bank Austria A.G. 34,500 2,800,966
Boehler-Uddeholm A.G. 21,500 1,420,465
------------
4,221,431
------------
BRAZIL -- 1.2%
Aracruz Celulose S.A. ADR 50,000 571,875
Rhodia-Ster S.A. GDR* 360,000 466,848
Telecomunicacoes Brasileiras S.A. ADR 11,000 1,201,063
------------
2,239,786
------------
CANADA -- 3.0%
Loewen Group, Inc. 70,000 1,890,000
Moore Corp., Ltd. 152,500 2,020,625
Noranda Forest, Inc. 185,000 974,982
Primex Forest Products. Ltd. 180,000 856,828
------------
5,742,435
------------
CHILE -- 1.0%
CIA. de Telecomunicaciones de Chile S.A. ADR 50,000 1,015,625
Empresa Nacional de Electricidad S.A. ADR 65,000 926,250
------------
1,941,875
------------
CHINA -- 0.5%
Shandong Huaneng Power Co., Ltd. ADR 180,000 967,500
------------
COLOMBIA -- 0.4%
Bancolombia S.A. ADR 70,000 765,625
------------
CZECH REPUBLIC -- 1.9%
Czech Power Co.* 21,000 583,710
Komercni Banka A.S. GDR* 269,500 2,983,688
------------
3,567,398
------------
DENMARK -- 1.6%
Unidanmark A.S.-A 34,100 3,064,380
------------
ECUADOR -- 0.6%
Pliva DD GDR 67,000 1,059,893
------------
FINLAND -- 2.0%
Kemira Oyj 145,000 1,498,502
Merita, Ltd.-A 160,000 1,055,686
Rauma Group Oyj 60,339 1,237,248
------------
3,791,436
------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
FRANCE -- 7.5%
AXA-UAP 14,858 $ 1,671,087
Bail Investissement 13,000 2,072,765
Banque Nationale de Paris 29,550 2,414,427
Elf Aquitaine S.A. 13,500 1,897,940
Eridania Beghin-Say S.A. 7,050 1,556,683
Fimalac S.A. 4,925 578,355
Groupe Danone 5,400 1,488,878
Scor S.A. 42,100 2,670,405
------------
14,350,540
------------
GERMANY -- 4.1%
BASF A.G. 25,000 1,184,191
Bilfinger & Berger Bau A.G. 74,000 2,513,088
VEBA A.G. 17,121 1,166,675
Viag A.G. 4,400 2,973,912
------------
7,837,866
------------
HONG KONG -- 4.0%
Cheung Kong (Holdings), Ltd. 235,000 1,155,502
Guoco Group, Ltd. 592,000 622,669
Hutchison Whampoa, Ltd. 381,000 2,011,065
Jardine Matheson Holdings, Ltd. 477,098 1,288,165
Jardine Strategic Holdings, Ltd. 600,000 1,140,000
Swire Pacific, Ltd.-A 399,000 1,506,179
Techtronic Industries Co. 130,000 26,844
------------
7,750,424
------------
INDIA -- 0.7%
Crompton Greaves, Ltd. GDR 473,000 260,150
State Bank of India, Ltd. GDR 85,000 1,003,000
------------
1,263,150
------------
INDONESIA -- 0.3%
PT Indosat 565,000 656,620
------------
ISRAEL -- 0.7%
Koor Industries Ltd. ADR 56,000 1,309,000
------------
ITALY -- 3.7%
Assicurazioni Generali 59,460 1,933,441
Banca Commerciale Italiana 398,000 2,380,096
Edison S.P.A. 114,000 914,860
Montedison S.P.A. 767,600 952,186
Telecom Italia Mobile S.P.A. 127,776 940,595
------------
7,121,178
------------
JAPAN -- 6.2%
Aoyama Trading Co. Ltd. 65,000 1,601,758
Daito Trust Construction Co., Ltd. 198,000 1,498,000
Daiwa House Industry Co., Ltd. 65,000 573,729
Daiwa Securities Co., Ltd. 149,000 640,941
Dowa Fire & Marine Insurance Co. 493,000 1,474,186
Kyudenko Co., Ltd. 317,000 2,073,970
Kyushu Electric Power Co., Inc. 90 1,404
Marubeni Corp. 845,000 1,686,529
See Notes to Financial Statements.
59
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
JAPAN (CONTINUED)
Nippon Fire & Marine Insurance 383,000 $ 1,564,729
Yamanouchi Pharmaceutical Co., Ltd. 34,000 708,002
------------
11,823,248
------------
KOREA -- 1.3%
Korea Fund, Inc.* 380,000 2,422,500
Pohang Iron & Steel Co., Ltd. ADR 4,200 50,400
------------
2,472,900
------------
MALAYSIA -- 1.1%
Malakoff BHD 630,000 1,162,025
Malayan Banking BHD 264,000 266,069
O.Y.L. Industries BHD 279,000 605,425
------------
2,033,519
------------
MEXICO -- 1.5%
Elamex S.A. de C.V.* 100,000 593,750
Telefonos de Mexico S.A. ADR 47,000 2,258,938
------------
2,852,688
------------
NETHERLANDS -- 3.1%
Eriks Holdings N.V. 15,000 1,010,215
European Vinyls Corp. International N.V. 86,000 1,500,821
Koninkijke Ahrend Groep N.V. 46,807 1,527,851
Unilever N.V. 24,224 1,921,992
------------
5,960,879
------------
NEW ZEALAND -- 2.3%
Air New Zealand, Ltd. 910,000 977,810
Brierley Investments, Ltd. 2,875,000 1,432,688
Carter Holt Harvey Ltd. 1,220,000 1,063,927
Fletcher Challenge Energy, Ltd. 424,000 1,012,433
------------
4,486,858
------------
NORWAY -- 2.5%
Kvaerner A.S.A. 51,000 1,728,016
Odfjell A.S.A. 70,000 921,348
Saga Petroleum A.S.A. 20,900 295,516
Union Bank of Norway 65,000 1,863,547
------------
4,808,427
------------
PAKISTAN -- 0.3%
Pakistan Telecommunications, Ltd. GDR 15,000 522,177
------------
PERU -- 0.4%
Banco Wiese ADR 245,000 842,188
------------
PHILIPPINES -- 0.3%
Filinvest Land, Inc.* 8,035,000 339,126
Philippine National Bank* 240,000 284,891
------------
624,017
------------
POLAND -- 0.4%
Mostostal Export S.A. ADR* 510,000 789,735
------------
PORTUGAL -- 0.7%
Electricidade de Portugal S.A. ADR 30,000 1,381,875
------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
RUSSIA -- 1.0%
Irkutskenergo ADR 101,000 $ 492,062
Lukoil Holding ADR 21,000 702,024
Rostelecom ADR* 50,000 668,750
------------
1,862,836
------------
SINGAPORE -- 1.0%
City Developments, Ltd. 380,000 1,061,628
United Overseas Bank, Ltd. 308,000 957,099
------------
2,018,727
------------
SLOVAKIA -- 0.9%
Nafta A.S. 30,000 409,859
Slovakofarma A.S. GDR 102,000 651,086
Vychodoslovenske Zeleziarne A.S. 89,000 734,616
------------
1,795,561
------------
SLOVENIA -- 0.7%
SKB Banka GDR 123,000 1,353,000
------------
SOUTH AFRICA -- 1.6%
Anglogold, Ltd. 29,659 1,203,477
Sappi, Ltd.* 184,000 695,074
Standard Bank Investment Corp., Ltd. 270,000 1,159,758
------------
3,058,309
------------
SPAIN -- 6.0%
Banco Bilbao Vizcaya S.A. 46,540 2,392,513
Construcciones y Auxiliar de
Ferrocarriles S.A. 47,410 1,858,122
Iberdrola S.A. 142,774 2,322,211
Repsol S.A. 41,302 2,279,717
Telefonica de Espana 57,271 2,652,370
------------
11,504,933
------------
SWEDEN -- 4.1%
ABB AB-B 112,500 1,565,841
Assidoman AB 59,000 1,716,374
Astra AB-A 1 20
Electrolux AB-B 83,000 1,425,840
Getinge Industries AB-B 87,000 1,778,193
Svenska Handelsbanken-A 29,600 1,373,300
------------
7,859,568
------------
SWITZERLAND -- 2.7%
ABB A.G. 720 1,063,284
Forbo Holdings A.G. 4,100 2,086,748
Lifco AB* 17,400 85,091
Nestle S.A. 895 1,915,316
------------
5,150,439
------------
THAILAND -- 1.3%
Thai Farmers Bank Public Co., Ltd. 910,000 801,359
Thailand International Fund* 230 1,610,000
------------
2,411,359
------------
See Notes to Financial Statements.
60
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
UNITED KINGDOM -- 13.1%
BICC Group P.L.C. 796,329 $ 1,740,564
British Telecommunications P.L.C. 161,367 1,992,382
BTR P.L.C. 602,819 1,709,868
BTR P.L.C.- B Shares* 741,932 427,080
Cable & Wireless P.L.C. 110,500 1,342,208
Caradon P.L.C. 398,795 1,237,624
Coats Viyella P.L.C. 543,859 671,497
De La Rue P.L.C. 97,677 488,107
General Electric Co., P.L.C. 97,518 840,391
Glaxo Wellcome P.L.C. 77,694 2,332,088
Hillsdown Holdings P.L.C. 759,375 2,052,568
HSBC Holdings P.L.C. 51,025 1,236,163
National Power P.L.C. 108,291 1,019,055
Rolls-Royce P.L.C. 596,726 2,464,202
Royal Bank of Scotland Group P.L.C. 59,037 1,024,434
Sainsbury (J.) P.L.C. 209,732 1,868,668
Tesco P.L.C. 149,602 1,460,224
United Utilities P.L.C. 85,982 1,250,262
------------
25,157,385
------------
TOTAL COMMON STOCK
(Cost $190,769,726) 174,276,092
------------
PREFERRED STOCK -- 1.2%
GERMANY -- 0.6%
Moebel Walther A.G. 23,700 1,116,048
------------
NETHERLANDS -- 0.6%
Ballast Nedam N.V. 28,000 1,241,557
------------
TOTAL PREFERRED STOCK
(Cost $2,213,000) 2,357,605
------------
CURRENCY -- 0.0%
Italian Lira
(Cost $3) 4,206 2
------------
RIGHTS AND WARRANTS-- 0.0%
Bank Austria A.G.* 34,500
DCB Holdings* 1,850 0
------------
TOTAL RIGHTS AND WARRANTS
(Cost $0) 0
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- --------- -------- ------- ------------
U.S. TREASURY OBLIGATIONS -- 5.9%
U.S. Treasury Bills
2.200% 07/09/98 $1,095 $ 1,094,465
2.386% 07/09/98 775 774,621
4.000% 07/09/98 795 794,293
4.100% 07/09/98 8,714 8,706,061
6.460% 07/09/98 10 9,988
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $11,379,428) 11,379,428
------------
TOTAL INVESTMENTS -- 98.0%
(Cost $204,362,157) 188,013,127
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 2.0% 3,771,916
------------
NET ASSETS -- 100.0%
Applicable to 13,680,361 and 127,432
shares of beneficial interest outstanding
of Institutional Class and Class A,
respectively, $.001 par value (Note 7) $191,785,043
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($190,017,439/13,680,361) $13.89
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER CLASS A SHARE
($1,767,604/127,432) $13.87
======
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
See Notes to Financial Statements.
61
<PAGE>
HARRIS INSIGHT FUNDS
EMERGING MARKETS
STATEMENT OF NET ASSETS
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK -- 94.0%
ARGENTINA -- 2.7%
Banco Rio de La Plata S.A. ADR 15,400 $ 162,662
Telefonica de Argentina S.A. ADR 4,600 149,213
Transportadora de Gas del Sur S.A. ADR 13,600 156,400
------------
468,275
------------
BRAZIL -- 7.2%
Companhia Vale do Rio Doce ADR 9,000 182,862
Industrias Klabin de Papele Celulose
S.A. ADR 48,100 99,615
Petroleo Brasileiro S.A. ADR 10,600 197,041
Rossi Residencial S.A. GDR 60,000 293,094
Telecomunicacoes Brasileiras S.A. ADR 2,400 262,050
Uniao de Bancos Brasileiros S.A. GDR 4,900 144,550
------------
1,279,212
------------
CHILE -- 3.6%
Administradora de Fondos de Pensiones
Provida S.A. ADR 12,000 199,500
CIA. de Telecomunicaciones de Chile
S.A. ADR 12,900 262,031
Empresa Nacional de Electricidad S.A. ADR 12,400 176,700
------------
638,231
------------
CHINA -- 2.4%
Harbin Power Equipment Co., Ltd. 3,060,000 276,438
Shandong Huaneng Power Co., Ltd. ADR 28,000 150,500
------------
426,938
------------
COLOMBIA -- 2.1%
Banco Ganadero S.A. ADR 11,900 209,738
Bancolombia S.A. ADR 15,400 168,438
------------
378,176
------------
CZECH REPUBLIC -- 7.1%
Deza Valasske Mezirici A.S. 7,200 302,918
Komercni Banka A.S. GDR* 23,200 256,852
Leciva Praha* 3,000 229,818
Metrostav A.S. 46,600 222,073
Skoda Plzen A.S. 24,700 245,982
------------
1,257,643
------------
ECUADOR -- 2.5%
La Cemento Nacional GDR 1,000 159,574
Pliva DD GDR 18,000 284,747
------------
444,321
------------
GREECE -- 1.4%
Hellenic Telecommunication
Organization S.A. 9,999 256,343
------------
HONG KONG -- 9.0%
Cafe De Coral Holdings, Ltd. 686,000 234,611
Cheung Kong (Holdings), Ltd. 30,000 147,511
Dao Heng Bank Group, Ltd. 95,000 134,863
Giordano International, Ltd. 274,000 55,517
Hutchison Whampoa, Ltd. 46,000 242,806
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
HONG KONG (CONTINUED)
Jardine Matheson Holdings, Ltd. 64,401 $ 173,883
Pacific Ports Co., Ltd. 766,000 106,765
Shanghai Petrochemical Co., Ltd. 2,000,000 224,557
Swire Pacific, Ltd.-A 33,000 124,571
Techtronic Industries Co. 712,000 147,020
------------
1,592,104
------------
HUNGARY -- 4.8%
BorsodChem Rt. 5,500 160,766
EGIS Rt.* 5,300 186,534
Graboplast Rt. 7,300 184,852
Magyar Tavkozlesi Rt. ADR 8,000 235,500
Pick Szeged Rt. 1,500 87,691
------------
855,343
------------
INDIA -- 7.1%
BSES, Ltd. GDR 16,500 182,229
Crompton Greaves, Ltd. GDR 47,620 26,191
Gujarat Ambuja Cement GDR 42,000 258,888
Larsen & Toubro, Ltd. GDR 20,000 216,448
Reliance Industries, Ltd. GDR* 25,000 169,085
State Bank of India, Ltd. GDR 18,000 212,400
Tata Engineering & Locomotive GDR 50,000 196,460
------------
1,261,701
------------
INDONESIA -- 0.6%
PT Kalbe Farma 1,535,000 41,486
PT Semen Cibinong TBK* 2,370,000 64,054
------------
105,540
------------
KOREA -- 3.7%
Pohang Iron & Steel Co., Ltd. ADR 23,200 278,400
Samsung Electronics Co., Ltd. GDR 10,834 173,127
SK Telecom Co., Ltd. ADR 36,540 203,254
------------
654,781
------------
MALAYSIA -- 4.8%
Malakoff BHD 90,000 166,004
Malayan Banking BHD 116,000 116,909
O.Y.L. Industries BHD 111,200 241,302
Road Builder (M) Holdings BHD 473,000 183,612
Technology Resources Industries BHD 200,000 137,432
------------
845,259
------------
MEXICO -- 6.2%
Altos Hornos de Mexico S.A.* 105,000 116,848
Cemex S.A. de C.V. - CPO 63,860 238,781
Grupo Industrial Durango S.A. ADR* 15,600 138,450
Grupo Mexico S.A. Series B 63,000 172,468
Telefonos de Mexico S.A. ADR 4,600 221,088
Transportacion Maritima Mexicana
S.A. de C.V. ADR 37,000 215,062
------------
1,102,697
------------
PAKISTAN -- 0.5%
Pakistan Telecommunications, Ltd. GDR 2,400 83,548
------------
See Notes to Financial Statements.
62
<PAGE>
HARRIS INSIGHT FUNDS
EMERGING MARKETS
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
PERU -- 2.9%
Banco Wiese ADR 45,000 $ 154,688
Luz del Sur S.A. ADR 12,100 133,986
Southern Peru Copper Corp. 17,100 222,300
------------
510,974
------------
PHILIPPINES -- 3.7%
Digital Telecommunications
Philippines, Inc.* 6,490,000 202,326
Filinvest Land, Inc.* 1,500,000 63,309
Metropolitan Bank & Trust Co. 40,200 236,187
Philippine National Bank* 87,000 103,273
Solid Group, Inc.* 2,785,000 53,429
------------
658,524
------------
POLAND -- 0.9%
Mostostal Export S.A. ADR* 100,000 154,850
------------
RUSSIA -- 6.1%
Gazprom ADR 14,400 160,992
Lukoil Holding ADR 7,400 247,380
Nizhnovsvyazinform ADR 20,000 107,500
Norilsk Nickel* 89 91,225
Rostelecom* 9 204,750
Slavneft-Megionneftegas 7 42,000
Surgutneftegaz ADR 44,700 181,178
Unified Energy Systems ADR 4,000 52,716
------------
1,087,741
------------
SINGAPORE -- 2.0%
City Developments, Ltd. 41,000 114,544
Osprey Maritime, Ltd.* 175,000 80,794
United Overseas Bank, Ltd. 52,000 161,588
------------
356,926
------------
SLOVAKIA -- 4.3%
Drotovna A.S.* 14,481 74,190
Nafta A.S. 3,000 40,986
Slovakofarma A.S. GDR 24,200 154,473
Slovenske Energeticke Stroja* 18,328 113,722
Slovnaft A.S. 9,200 180,680
Vychodoslovenske Zeleziarne A.S. 24,000 198,099
------------
762,150
------------
SLOVENIA -- 1.0%
SKB Banka GDR 16,600 182,600
------------
SOUTH AFRICA -- 1.6%
Sappi, Ltd.* 31,000 117,105
Standard Bank Investment Corp., Ltd. 40,000 171,816
------------
288,921
------------
THAILAND -- 2.0%
Bangkok Bank Public Co., Ltd. 89,000 109,409
Phatra Thanakit Public Co., Ltd.* 142,000 12,756
Precious Shipping Public Co., Ltd.* 235,000 115,278
Siam Cement Public Co., Ltd.* 7,000 33,759
Thai Farmers Bank Public Co., Ltd. 93,000 81,897
------------
353,099
------------
SHARES VALUE(DAGGER)
--------- ------------
COMMON STOCK (CONTINUED)
TURKEY -- 1.8%
Cimsa Cimento Sanayi Ve Ticaret A.S. 3,600,000 $ 182,432
Yapi Ve Kredi Bankasi A.S. 5,370,000 137,072
------------
319,504
------------
VENEZUELA -- 2.0%
Manufacturas de Papel C.A. ADR 86,000 89,457
Mavesa S.A. ADR 46,700 148,856
Siderurgica Venezolana Sivensa
S.A.C.A. ADR 18,966 114,086
------------
352,399
------------
TOTAL COMMON STOCK
(Cost $23,673,415) 16,677,800
------------
RIGHTS AND WARRANTS -- 0.0%
CIA. de Telecomunicaciones de Chile S.A. ADR*
(Cost $0) 563 194
------------
COUPON PAR
RATE MATURITY (000)
- --------- -------- -------
U.S. TREASURY OBLIGATIONS -- 10.0%
U.S. Treasury Bills
4.100% 07/09/98 $1,653 1,651,494
4.290% 07/09/98 35 34,967
5.400% 07/09/98 20 19,976
5.500% 07/09/98 71 70,913
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,777,350) 1,777,350
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 0.0%
Temporary Investment Fund Inc. - TempCash
(Cost $3,120) 3,120 3,120
-----------
TOTAL INVESTMENTS -- 104.0%
(Cost $25,453,885) 18,458,464
-----------
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (4.0%) (704,334)
-----------
NET ASSETS -- 100.0%
Applicable to 2,701,221 and 14,864 shares
of beneficial interest outstanding of
Institutional Class and Class A, respectively,
$.001 par value (Note 7) $17,754,130
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($17,657,343/2,701,221) $6.54
=====
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER CLASS A SHARE ($96,787/14,864) $6.51
=====
- -----------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
See Notes to Financial Statements.
63
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998
<TABLE>
<CAPTION>
MONEY MARKET FUNDS
-----------------------------------
GOVERNMENT MONEY TAX-EXEMPT
MONEY FUND FUND MONEY FUND
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................. $10,139,531 $50,012,355 $14,987,803
Dividends -- -- --
Foreign taxes withheld .................... -- -- --
----------- ----------- -----------
Total investment income ................. 10,139,531 50,012,355 14,987,803
----------- ----------- -----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 4) .......... 199,900 890,603 432,805
Rule 12b-1 fee-Class A (Note 5) ........... 127,115 324,127 106,865
Shareholder services fee (Note 5) ......... 337,089 858,573 284,824
Transfer agency fee (Note 4) .............. 25,524 108,490 49,744
Administration fee (Note 4) ............... 153,127 758,071 355,713
Custodian fee (Note 4) .................... 18,591 85,504 40,381
Directors' fees and expenses .............. 4,111 19,920 9,436
Audit fee ................................. 6,647 38,917 10,257
Legal fee ................................. 1,945 4,512 4,484
Amortization of organization
expenses (Note 2f) ...................... -- -- --
Reports to shareholders ................... 16,242 50,472 12,716
Registration fees ......................... 37,123 120,921 66,621
Miscellaneous ............................. 6,590 41,994 14,987
----------- ----------- -----------
Total expenses .......................... 934,004 3,302,104 1,388,833
----------- ----------- -----------
Less fee waivers and expense
reimbursements (Notes 4,5) .............. (106,907) (430,153) (44,789)
----------- ----------- -----------
Net expenses ............................ 827,097 2,871,951 1,344,044
----------- ----------- -----------
NET INVESTMENT INCOME/(LOSS) ............ 9,312,434 47,140,404 13,643,759
----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized gain/(loss) from:
Investment transactions ................. -- (10,398) (274)
Futures contracts ....................... -- -- --
Foreign currency transactions ........... -- -- --
Net change in unrealized appreciation/
(depreciation) on:
Investments ............................. -- -- --
Futures contracts ....................... -- -- --
Foreign currency transactions ........... -- -- --
Increase in amortized market discount ... -- -- 11,570
----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS ............................ -- (10,398) 11,296
----------- ----------- -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ........................... $ 9,312,434 $47,130,006 $13,655,055
=========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
------------------------------------------------------------------------------
SHORT/ INTERMEDIATE INTERMEDIATE CONVERTIBLE
INTERMEDIATE BOND GOVERNMENT TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND FUND FUND FUND
------------ ---------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................. $10,454,437 $5,196,590 $3,334,567 $ 4,679,821 $ 4,515,644 $ 452,988
Dividends -- -- -- -- -- 903,068
Foreign taxes withheld .................... -- -- -- -- -- --
----------- ---------- ---------- ----------- ----------- ----------
Total investment income ................. 10,454,437 5,196,590 3,334,567 4,679,821 4,515,644 1,356,056
----------- ---------- ---------- ----------- ----------- ----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 4) .......... 1,104,836 517,135 332,690 590,132 532,158 191,847
Rule 12b-1 fee-Class A (Note 5) ........... -- -- -- -- -- --
Shareholder services fee (Note 5) ......... 7,990 1,530 1,082 968 855 280
Transfer agency fee (Note 4) .............. 17,932 8,876 9,166 10,342 9,505 4,361
Administration fee (Note 4) ............... 223,880 112,212 72,724 139,830 126,268 39,086
Custodian fee (Note 4) .................... 19,287 16,835 7,870 8,415 8,093 5,898
Directors' fees and expenses .............. 3,609 1,818 1,171 751 2,031 627
Audit fee ................................. 5,837 2,940 1,894 3,140 3,285 1,014
Legal fee ................................. 1,725 863 562 1,077 978 301
Amortization of organization
expenses (Note 2f) ...................... -- 1,981 1,991 1,981 1,981 1,991
Reports to shareholders ................... 7,488 3,073 1,201 4,310 2,080 643
Registration fees ......................... 23,324 31,735 45,017 9,207 5,865 29,245
Miscellaneous ............................. 13,530 10,142 2,788 13,472 7,311 6,107
----------- ---------- ---------- ----------- ----------- ----------
Total expenses .......................... 1,429,438 709,140 478,156 783,625 700,410 281,400
----------- ---------- ---------- ----------- ----------- ----------
Less fee waivers and expense
reimbursements (Notes 4,5) .............. (475,166) (230,254) (221,158) -- -- (28,978)
----------- ---------- ---------- ----------- ----------- ----------
Net expenses ............................ 954,272 478,886 256,998 783,625 700,410 252,422
----------- ---------- ---------- ----------- ----------- ----------
NET INVESTMENT INCOME/(LOSS) ............ 9,500,165 4,717,704 3,077,569 3,896,196 3,815,234 1,103,634
----------- ---------- ---------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized gain/(loss) from:
Investment transactions ................. 1,005,746 991,681 159,104 1,709,430 2,428,818 2,776,475
Futures contracts ....................... (185,258) (221,220) 7,812 -- -- --
Foreign currency transactions ........... -- -- -- -- -- --
Net change in unrealized appreciation/
(depreciation) on:
Investments ............................. (94,352) 307,081 (69,173) (2,261,041) (2,774,348) (1,662,683)
Futures contracts ....................... (13,031) (139,719) (94,094) -- -- --
Foreign currency transactions ........... -- -- -- -- -- --
Increase in amortized market discount ... -- -- -- -- -- --
----------- ---------- ---------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS ............................ 713,105 937,823 3,649 (551,611) (345,530) 1,113,792
----------- ---------- ---------- ----------- ----------- ----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ........................... $10,213,270 $5,655,527 $3,081,218 $ 3,344,585 $ 3,469,704 $2,217,426
=========== ========== ========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
----------------------------------------------------------------------
EQUITY SMALL-CAP SMALL-CAP
EQUITY INCOME GROWTH OPPORTUNITY VALUE INDEX
FUND FUND FUND FUND FUND FUND
------------ ---------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................. $ 508,645 $ 76,423 $ 88,476 $ 254,686 $ 170,645 $ 334,622
Dividends 6,919,064 445,707 654,586 1,061,570 562,864 2,296,833
Foreign taxes withheld .................... -- -- -- -- -- --
------------ ---------- ----------- ----------- ---------- -----------
Total investment income ................. 7,427,709 522,130 743,062 1,316,256 733,509 2,631,455
------------ ---------- ----------- ----------- ---------- -----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 4) .......... 3,207,733 167,153 570,454 1,482,042 415,953 400,463
Rule 12b-1 fee-Class A (Note 5) ........... -- -- -- -- -- --
Shareholder services fee (Note 5) ......... 30,022 2,136 4,570 3,873 560 10,255
Transfer agency fee (Note 4) .............. 48,983 3,105 6,665 19,139 6,390 20,393
Administration fee (Note 4) ............... 650,760 33,791 89,808 210,417 73,803 227,559
Custodian fee (Note 4) .................... 43,213 2,717 7,812 18,386 12,735 50,659
Directors' fees and expenses .............. 10,472 545 1,448 3,387 1,188 2,660
Audit fee ................................. 16,935 881 2,340 3,477 3,921 5,919
Legal fee ................................. 4,994 258 687 1,618 565 244
Amortization of organization
expenses (Note 2f) ...................... -- 1,981 1,981 1,981 1,991 1,981
Reports to shareholders ................... 20,767 562 1,491 7,980 3,223 4,765
Registration fees ......................... 23,994 17,128 16,791 36,339 32,308 23,147
Miscellaneous ............................. 17,723 2,888 3,255 15,160 4,439 14,457
------------ ---------- ----------- ----------- ---------- -----------
Total expenses .......................... 4,075,596 233,145 707,302 1,803,799 557,076 762,502
------------ ---------- ----------- ----------- ---------- -----------
Less fee waivers and expense
reimbursements (Notes 4,5) .............. -- (8,934) (5,510) (21,475) (41,773) (31,414)
------------ ---------- ----------- ----------- ---------- -----------
Net expenses ............................ 4,075,596 224,211 701,792 1,782,324 515,303 731,088
------------ ---------- ----------- ----------- ---------- -----------
NET INVESTMENT INCOME/(LOSS) ............ 3,352,113 297,919 41,270 (466,068) 218,206 1,900,367
------------ ---------- ----------- ----------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized gain/(loss) from:
Investment transactions ................. 74,569,380 850,507 9,516,003 7,001,065 5,933,205 10,162,713
Futures contracts ....................... -- -- -- -- -- 1,455,393
Foreign currency transactions ........... -- -- -- -- -- --
Net change in unrealized appreciation/
(depreciation) on:
Investments ............................. 25,958,106 5,616,683 8,725,031 13,723,894 1,514,139 37,271,384
Futures contracts ....................... -- -- -- -- -- 180,700
Foreign currency transactions ........... -- -- -- -- -- --
Increase in amortized market discount ... -- -- -- -- -- --
------------ ---------- ----------- ----------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS ............................ 100,527,486 6,467,190 18,241,034 20,724,959 7,447,344 49,070,190
------------ ---------- ----------- ----------- ---------- -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ........................... $103,879,599 $6,765,109 $18,282,304 $20,258,891 $7,665,550 $50,970,557
============ ========== =========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
------------------------------------
EMERGING
BALANCED INTERNATIONAL MARKETS
FUND FUND FUND
---------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................. $1,113,477 $ 233,772 $ 45,987
Dividends 252,444 3,448,031 278,188
Foreign taxes withheld .................... -- (314,520) (6,481)
---------- ----------- -----------
Total investment income ................. 1,365,921 3,367,283 317,694
---------- ----------- -----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 4) .......... 204,366 983,064 126,740
Rule 12b-1 fee-Class A (Note 5) ........... -- -- --
Shareholder services fee (Note 5) ......... 1,722 2,170 141
Transfer agency fee (Note 4) .............. 9,905 10,674 1,181
Administration fee (Note 4) ............... 48,432 140,221 15,072
Custodian fee (Note 4) .................... 15,417 110,482 40,018
Directors' fees and expenses .............. 779 2,139 232
Audit fee ................................. 1,861 3,458 375
Legal fee ................................. 374 1,018 112
Amortization of organization
expenses (Note 2f) ...................... 1,991 1,981 --
Reports to shareholders ................... 2,000 2,200 1,237
Registration fees ......................... 32,955 30,894 21,464
Miscellaneous ............................. 10,611 24,621 5,366
---------- ----------- -----------
Total expenses .......................... 330,413 1,312,922 211,938
---------- ----------- -----------
Less fee waivers and expense
reimbursements (Notes 4,5) .............. (28,954) -- (34,360)
---------- ----------- -----------
Net expenses ............................ 301,459 1,312,922 177,578
---------- ----------- -----------
NET INVESTMENT INCOME/(LOSS) ............ 1,064,462 2,054,361 140,116
---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized gain/(loss) from:
Investment transactions ................. 3,572,433 6,780,518 (586,919)
Futures contracts ....................... (130,374) -- --
Foreign currency transactions ........... -- (232,395) (49,981)
Net change in unrealized appreciation/
(depreciation) on:
Investments ............................. 13,940 (2,402,660) (4,623,470)
Futures contracts ....................... (1,500) -- --
Foreign currency transactions ........... -- 25,606 (4,567)
Increase in amortized market discount ... -- -- --
---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS ............................ 3,454,499 4,171,069 (5,264,937)
---------- ----------- -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ........................... $4,518,961 $ 6,225,430 $(5,124,821)
========== =========== ===========
</TABLE>
See Notes to Financial Statements.
64 & 65
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998
<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/
(loss) .................................. $ 9,312,434 $ 47,140,404 $ 13,643,759
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ............................ -- (10,398) (274)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ............................ -- -- --
Increase in amortized
market discount ......................... -- -- 11,570
------------ -------------- ------------
Increase/(decrease) in net
assets from operations .................. 9,312,434 47,130,006 13,655,055
------------ -------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ..................... (2,449,273) (29,244,918) (10,144,563)
Class A ................................. (6,863,161) (17,895,486) (3,499,196)
------------ -------------- ------------
Total distributions from net
investment income ....................... (9,312,434) (47,140,404) (13,643,759)
------------ -------------- ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ..................... 40,294,087 105,697,597 187,112,015
Class A ................................. 30,606,423 28,453,263 (25,965,542)
------------ -------------- ------------
Increase/(decrease) in net
assets from capital share
transactions ............................ 70,900,510 134,150,860 161,146,473
------------ -------------- ------------
Total increase/(decrease) in
net assets .............................. 70,900,510 134,140,462 161,157,769
NET ASSETS:
Beginning of period ....................... 311,563,860 1,705,895,263 721,057,003
------------ -------------- ------------
End of period ............................. $382,464,370 $1,840,035,725 $882,214,772
============ ============== ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
------------------------------------------------------------------------------
SHORT/ INTERMEDIATE INTERMEDIATE CONVERTIBLE
INTERMEDIATE BOND GOVERNMENT TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND FUND FUND FUND
------------- ---------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) .................................. $ 9,500,165 $ 4,717,704 $ 3,077,569 $ 3,896,196 $ 3,815,234 $ 1,103,634
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ............................ 820,488 770,461 166,916 1,709,430 2,428,818 2,776,475
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ............................ (107,383) 167,362 (163,267) (2,261,041) (2,774,348) (1,662,683)
Increase in amortized
market discount ......................... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from operations .................. 10,213,270 5,655,527 3,081,218 3,344,585 3,469,704 2,217,426
------------ ------------ ------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ..................... (9,317,399) (4,683,033) (3,053,273) (3,881,834) (3,801,349) (1,068,285)
Class A ................................. (184,362) (34,671) (25,004) (14,362) (13,885) (4,818)
------------ ------------ ------------ ------------ ------------ -----------
Total distributions from net
investment income ....................... (9,501,761) (4,717,704) (3,078,277) (3,896,196) (3,815,234) (1,073,103)
------------ ------------ ------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ..................... 30,299,300 29,732,225 4,783,319 8,013,214 (5,387,451) (6,477,862)
Class A ................................. (2,242,934) 767,720 378,441 76,361 74,682 248,623
------------ ------------ ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ............................ 28,056,366 30,499,945 5,161,760 8,089,575 (5,312,769) (6,229,239)
------------ ------------ ------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets .............................. 28,767,875 31,437,768 5,164,701 7,537,964 (5,658,299) (5,084,916)
NET ASSETS:
Beginning of period ....................... 294,808,262 141,382,908 100,075,024 193,653,413 180,515,350 59,468,964
------------ ------------ ------------ ------------ ------------ -----------
End of period ............................. $323,576,137 $172,820,676 $105,239,725 $201,191,377 $174,857,051 $54,384,048
============ ============ ============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-----------------------------------------------------------------------------
EQUITY SMALL-CAP SMALL-CAP
EQUITY INCOME GROWTH OPPORTUNITY VALUE INDEX
FUND FUND FUND FUND FUND FUND
------------ ---------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) .................................. $ 3,352,113 $ 297,919 $ 41,270 $ (466,068) $ 218,206 $ 1,900,367
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ............................ 74,569,380 850,507 9,516,003 7,001,065 5,933,205 11,618,106
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ............................ 25,958,106 5,616,683 8,725,031 13,723,894 1,514,139 37,452,084
Increase in amortized
market discount ......................... -- -- -- -- -- --
------------ ----------- ------------ ------------ ------------ ------------
Increase/(decrease) in net
assets from operations .................. 103,879,599 6,765,109 18,282,304 20,258,891 7,665,550 50,970,557
------------ ----------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ..................... (3,169,445) (270,531) (22,779) -- -- (1,786,192)
Class A ................................. (54,034) (8,104) -- -- -- (35,472)
------------ ----------- ------------ ------------ ------------ ------------
Total distributions from net
investment income ....................... (3,223,479) (278,635) (22,779) -- -- (1,821,664)
------------ ----------- ------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ..................... (2,663,816) 5,371,124 9,844,605 18,713,924 3,461,098 (6,140,749)
Class A ................................. 5,033,329 760,400 2,505,110 1,871,140 317,050 1,041,529
------------ ----------- ------------ ------------ ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions ............................ 2,369,513 6,131,524 12,349,715 20,585,064 3,778,148 (5,099,220)
------------ ----------- ------------ ------------ ------------ ------------
Total increase/(decrease) in
net assets .............................. 103,025,633 12,617,998 30,609,240 40,843,955 11,443,698 44,049,673
NET ASSETS:
Beginning of period ....................... 863,688,494 41,665,372 111,906,477 276,838,393 100,108,306 299,137,744
------------ ----------- ------------ ------------ ------------ ------------
End of period ............................. $966,714,127 $54,283,370 $142,515,717 $317,682,348 $111,552,004 $343,187,417
============ =========== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-------------------------------------
EMERGING
BALANCED INTERNATIONAL MARKETS
FUND FUND FUND
---------- ----------- -----------
<S> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) .................................. $ 1,064,462 $ 2,054,361 $ 140,116
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ............................ 3,442,059 6,548,123 (636,900)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ............................ 12,440 (2,377,054) (4,628,037)
Increase in amortized
market discount ......................... -- -- --
----------- ------------ -----------
Increase/(decrease) in net
assets from operations .................. 4,518,961 6,225,430 (5,124,821)
----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ..................... (1,021,748) -- --
Class A ................................. (21,867) -- --
----------- ------------ -----------
Total distributions from net
investment income ....................... (1,043,615) -- --
----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ..................... (6,617,854) 11,736,307 4,725,916
Class A ................................. 1,141,825 399,871 33,558
----------- ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ............................ (5,476,029) 12,136,178 4,759,474
----------- ------------ -----------
Total increase/(decrease) in
net assets .............................. (2,000,683) 18,361,608 (365,347)
NET ASSETS:
Beginning of period ....................... 70,114,929 173,423,435 18,119,477
----------- ------------ -----------
End of period ............................. $68,114,246 $191,785,043 $17,754,130
=========== ============ ===========
</TABLE>
See Notes to Financial Statements.
66 & 67
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED DECEMBER 31, 1997
<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/
(loss) .................................. $ 15,488,590 $ 67,365,235 $ 21,204,196
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ............................ -- (1,461,593) (892)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ............................ -- -- --
------------ -------------- ------------
Increase/(decrease) in net
assets from operations .................. 15,488,590 65,903,642 21,203,304
------------ -------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ..................... (2,834,858) (38,816,984) (15,135,955)
Class A ................................. (12,653,732) (28,548,251) (6,070,770)
------------ -------------- ------------
Total distributions from net
investment income ....................... (15,488,590) (67,365,235) (21,206,725)
------------ -------------- ------------
Net realized gains on investments:
Institutional Class ..................... -- -- --
Class A ................................. -- -- --
------------ -------------- ------------
Total distributions from net
realized gains .......................... -- -- --
------------ -------------- ------------
CONTRIBUTION BY AFFILIATE
(NOTE 9): ............................... -- 1,470,000 --
------------ -------------- ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ..................... 26,800,699 658,668,867 109,583,316
Class A ................................. 41,520,825 216,587,667 44,224,011
------------ -------------- ------------
Increase/(decrease) in net
assets from capital share
transactions ............................ 68,321,524 875,256,534 153,807,327
------------ -------------- ------------
Total increase/(decrease) in
net assets .............................. 68,321,524 875,264,941 153,803,906
NET ASSETS:
Beginning of period ....................... 243,242,336 830,630,322 567,253,097
------------ -------------- ------------
End of period ............................. $311,563,860 $1,705,895,263 $721,057,003
============ ============== ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
------------------------------------------------------------------------------
SHORT/ INTERMEDIATE INTERMEDIATE CONVERTIBLE
INTERMEDIATE BOND GOVERNMENT TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND(1) FUND FUND FUND(1)
------------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) .................................. $ 17,377,741 $ 5,935,260 $ 4,364,874 $ 8,296,197 $ 7,704,555 $ 1,749,776
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ............................ 847,581 2,448,379 229,250 1,426,902 2,278,252 8,241,307
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ............................ 1,232,588 1,728,272 2,088,457 2,461,211 4,314,650 (2,120,819)
------------ ------------ ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from operations .................. 19,457,910 10,111,911 6,682,581 12,184,310 14,297,457 7,870,264
------------ ------------ ------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ..................... (17,084,176) (5,907,553) (4,361,069) (8,289,452) (7,695,657) (1,714,407)
Class A ................................. (300,919) (27,351) (3,097) (6,745) (8,898) (1,300)
------------ ------------ ------------ ------------ ------------ -----------
Total distributions from net
investment income ....................... (17,385,095) (5,934,904) (4,364,166) (8,296,197) (7,704,555) (1,715,707)
------------ ------------ ------------ ------------ ------------ -----------
Net realized gains on investments:
Institutional Class ..................... -- (2,001,274) (244,277) (894,786) (2,054,220) (7,153,493)
Class A ................................. -- (12,735) (1,277) (2,642) (5,729) (14,695)
------------ ------------ ------------ ------------ ------------ -----------
Total distributions from net
realized gains .......................... -- (2,014,009) (245,554) (897,428) (2,059,949) (7,168,188)
------------ ------------ ------------ ------------ ------------ -----------
CONTRIBUTION BY AFFILIATE
(NOTE 9): ............................... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ..................... 31,278,423 95,148,737 97,287,068 (18,665,386) 9,959,353 60,381,036
Class A ................................. 1,451,666 798,651 715,055 637,652 596,991 101,519
------------ ------------ ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ............................ 32,730,089 95,947,388 98,002,123 (18,027,734) 10,556,344 60,482,555
------------ ------------ ------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets .............................. 34,802,904 98,110,386 100,074,984 (15,037,049) 15,089,297 59,468,924
NET ASSETS:
Beginning of period ....................... 260,005,358 43,272,522 40 208,690,462 165,426,053 40
------------ ------------ ------------ ------------ ------------ -----------
End of period ............................. $294,808,262 $141,382,908 $100,075,024 $193,653,413 $180,515,350 $59,468,964
============ ============ ============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-----------------------------------------------------------------------------
EQUITY SMALL-CAP SMALL-CAP
EQUITY INCOME GROWTH OPPORTUNITY VALUE INDEX
FUND FUND FUND FUND FUND(1) FUND
------------ ---------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) .................................. $ 10,401,374 $ 640,339 $ 210,691 $ 67,095 $ 354,172 $ 3,228,722
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ............................ 153,356,372 3,740,201 10,233,556 23,006,974 10,717,007 9,454,867
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ............................ 83,061,401 5,725,836 16,055,605 27,081,426 4,285,180 49,045,843
------------- ----------- ------------ ------------ ------------ ------------
Increase/(decrease) in net
assets from operations .................. 246,819,147 10,106,376 26,499,852 50,155,495 15,356,359 61,729,432
------------- ----------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ..................... (10,313,495) (622,097) (210,244) (148,763) (331,341) (3,248,383)
Class A ................................. (109,659) (8,911) (129) -- (247) (27,169)
------------- ----------- ------------ ------------ ------------ ------------
Total distributions from net
investment income ....................... (10,423,154) (631,008) (210,373) (148,763) (331,588) (3,275,552)
------------- ----------- ------------ ------------ ------------ ------------
Net realized gains on investments:
Institutional Class ..................... (142,024,885) (3,492,651) (9,352,220) (24,392,179) (7,507,524) (8,653,473)
Class A ................................. (2,485,343) (97,939) (171,130) (174,710) (18,620) (148,087)
------------- ----------- ------------ ------------ ------------ ------------
Total distributions from net
realized gains .......................... (144,510,228) (3,590,590) (9,523,350) (24,566,889) (7,526,144) (8,801,560)
------------- ----------- ------------ ------------ ------------ ------------
CONTRIBUTION BY AFFILIATE
(NOTE 9): ............................... -- -- -- -- -- --
------------- ----------- ------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ..................... 186,191,498 2,798,145 15,943,321 98,594,689 92,299,943 98,704,147
Class A ................................. 9,419,199 924,318 2,284,070 2,055,352 309,696 6,677,177
------------- ----------- ------------ ------------ ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions ............................ 195,610,697 3,722,463 18,227,391 100,650,041 92,609,639 105,381,324
------------- ----------- ------------ ------------ ------------ ------------
Total increase/(decrease) in
net assets .............................. 287,496,462 9,607,241 34,993,520 126,089,884 100,108,266 155,033,644
NET ASSETS:
Beginning of period ....................... 576,192,032 32,058,131 76,912,957 150,748,509 40 144,104,100
------------- ----------- ------------ ------------ ------------ ------------
End of period ............................. $ 863,688,494 $41,665,372 $111,906,477 $276,838,393 $100,108,306 $299,137,744
============= =========== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUND
--------------------------------------
EMERGING
BALANCED INTERNATIONAL MARKETS
FUND(1) FUND FUND(2)
---------- ------------- -----------
<S> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) .................................. $ 1,708,627 $ 1,467,341 $ 12,948
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ............................ 1,188,909 13,870,288 (73,817)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ............................ 8,588,734 (24,029,900) (2,368,209)
----------- ------------ -----------
Increase/(decrease) in net
assets from operations .................. 11,486,270 (8,692,271) (2,429,078)
----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Class ..................... (1,683,590) (1,508,126) --
Class A ................................. (4,659) (4,475) --
----------- ------------ -----------
Total distributions from net
investment income ....................... (1,688,249) (1,512,601) --
----------- ------------ -----------
Net realized gains on investments:
Institutional Class ..................... -- (16,062,527) --
Class A ................................. -- (119,925) --
----------- ------------ -----------
Total distributions from net
realized gains .......................... -- (16,182,452) --
----------- ------------ -----------
CONTRIBUTION BY AFFILIATE
(NOTE 9): ............................... -- -- --
----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class ..................... 59,623,885 88,567,033 20,438,890
Class A ................................. 692,983 899,170 109,665
----------- ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ............................ 60,316,868 89,466,203 20,548,555
----------- ------------ -----------
Total increase/(decrease) in
net assets .............................. 70,114,889 63,078,879 18,119,477
NET ASSETS:
Beginning of period ....................... 40 110,344,556 --
----------- ------------ -----------
End of period ............................. $70,114,929 $173,423,435 $18,119,477
=========== ============ ===========
<FN>
- -------------
(1) For the period 03/24/97 (commencement of operations) to 12/31/97.
(2) For the period 10/21/97 (commencement of operations) to 12/31/97.
</FN>
</TABLE>
See Notes to Financial Statements.
68-69
<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
06/30/98 12/31/97 06/30/98 12/31/97 06/30/98 12/31/97
--------------- -------------- --------------- --------------- ------------- -------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Sold $ 224,296,553 $ 310,077,266 $ 2,870,367,975 $ 2,935,583,373 $ 792,669,484 $ 814,990,746
Issued as reinvestment of
dividends 314,111 290,884 2,720,114 4,320,343 11,124 22,292
Redeemed (184,316,577) (283,567,451) (2,767,390,492) (2,281,234,849) (605,568,593) (705,429,722)
--------------- -------------- --------------- --------------- ------------- -------------
Net increase/(decrease) $ 40,294,087 $ 26,800,699 $ 105,697,597 $ 658,668,867 $ 187,112,015 $ 109,583,316
=============== ============== =============== =============== ============= =============
CLASS A:
Sold $ 1,046,596,287 $ 1,342,810,468 $ 1,325,164,754 $ 2,398,112,387 $ 254,418,932 $ 566,351,447
Issued as reinvestment of
dividends 4,678,559 7,187,840 13,680,893 18,841,382 2,713,524 3,936,135
Redeemed (1,020,668,423) (1,308,477,483) (1,310,392,384) (2,200,366,102) (283,097,998) (526,063,571)
--------------- -------------- --------------- --------------- ------------- -------------
Net increase/(decrease) $ 30,606,423 $ 41,520,825 $ 28,453,263 $ 216,587,667 $ (25,965,542) $ 44,224,011
=============== ============== =============== =============== ============= =============
</TABLE>
See Notes to Financial Statements.
70
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
-------------------------------------------------------------------------------------
SHORT/ INTERMEDIATE
INTERMEDIATE BOND GOVERNMENT
FUND FUND FUND
-------------------------- -------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/98 12/31/97 06/30/98 12/31/97 06/30/98 12/31/97(1)
------------ ------------ ----------- ----------- ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL CLASS:
Sold .................................. $ 44,381,108 $ 52,771,039 $35,071,284 $99,249,501 $ 19,070,666 $123,309,885
Issued as reinvestment of dividends ... 935,939 1,661,326 2,246,454 3,781,384 2,937,999 4,539,814
Redeemed .............................. (15,017,747) (23,153,942) (7,585,513) (7,882,148) (17,225,346) (30,562,631)
------------ ------------ ----------- ----------- ------------ ------------
Net increase/(decrease) ............... $ 30,299,300 $ 31,278,423 $29,732,225 $95,148,737 $ 4,783,319 $ 97,287,068
============ ============ =========== =========== ============ ============
CLASS A:
Sold .................................. $ 1,464,626 $ 2,236,939 $ 980,439 $ 929,922 $ 363,557 $ 710,868
Issued as reinvestment of dividends ... 155,132 260,154 14,306 18,847 24,733 4,387
Redeemed .............................. (3,862,692) (1,045,427) (227,025) (150,118) (9,849) (200)
------------ ------------ ----------- ----------- ------------ ------------
Net increase/(decrease) ............... $ (2,242,934) $ 1,451,666 $ 767,720 $ 798,651 $ 378,441 $ 715,055
============ ============ =========== =========== ============ ============
===============================================================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold .................................. 4,319,863 5,209,406 3,423,129 9,893,541 1,152,554 7,607,489
Issued as reinvestment of dividends ... 91,279 163,759 219,419 371,313 177,732 277,370
Redeemed .............................. (1,463,498) (2,281,540) (739,757) (775,447) (1,039,121) (1,876,066)
------------ ------------ ----------- ----------- ------------ ------------
Net increase/(decrease) ............... 2,947,644 3,091,625 2,902,791 9,489,407 291,165 6,008,793
============ ============ =========== =========== ============ ============
CLASS A:
Sold .................................. 142,788 219,857 95,833 91,724 22,007 43,019
Issued as reinvestment of dividends ... 15,125 25,622 1,397 1,851 1,496 266
Redeemed .............................. (376,813) (102,616) (22,164) (14,738) (596) (12)
------------ ------------ ----------- ----------- ------------ ------------
Net increase/(decrease) ............... (218,900) 142,863 75,066 78,837 22,907 43,273
============ ============ =========== =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
----------------------------------------------------------------------------------
INTERMEDIATE CONVERTIBLE
TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND
-------------------------- -------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/98 12/31/97 06/30/98 12/31/97 06/30/98 12/31/97(1)
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL CLASS:
Sold .................................. $ 27,647,999 $ 41,062,483 $ 13,236,795 $ 36,002,208 $ 3,503,404 $ 62,943,202
Issued as reinvestment of dividends ... 19,270 211,439 39,984 357,835 1,059,115 8,825,043
Redeemed .............................. (19,654,055) (59,939,308) (18,664,230) (26,400,690) (11,040,381) (11,387,209)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ............... $ 8,013,214 $(18,665,386) $ (5,387,451) $ 9,959,353 $ (6,477,862) $ 60,381,036
============ ============ ============ ============ ============ ============
CLASS A:
Sold .................................. $ 400,661 $ 649,957 $ 313,996 $ 685,982 $ 291,373 $ 166,195
Issued as reinvestment of dividends ... 8,345 5,164 5,194 7,264 3,165 7,403
Redeemed .............................. (332,645) (17,469) (244,508) (96,255) (45,915) (72,079)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ............... $ 76,361 $ 637,652 $ 74,682 $ 596,991 $ 248,623 $ 101,519
============ ============ ============ ============ ============ ============
============================================================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold .................................. 2,574,449 3,868,924 1,256,302 3,491,829 117,849 2,149,501
Issued as reinvestment of dividends ... 1,798 19,743 3,810 34,122 35,638 311,634
Redeemed .............................. (1,829,930) (5,656,367) (1,775,222) (2,567,773) (384,977) (379,031)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ............... 746,317 (1,767,700) (515,110) 958,178 (231,490) 2,082,104
============ ============ ============ ============ ============ ============
CLASS A:
Sold .................................. 37,218 61,099 29,801 65,967 9,726 5,326
Issued as reinvestment of dividends ... 779 483 495 693 107 264
Redeemed .............................. (31,103) (1,652) (23,253) (9,210) (1,541) (2,596)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ............... 6,894 59,930 7,043 57,450 8,292 2,994
============ ============ ============ ============ ============ ============
<FN>
- ------------
(1) For the period 03/24/97 (commencement of operations) to 12/31/97.
</FN>
</TABLE>
See Notes to Financial Statements.
72 & 73
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
EQUITY FUNDS
--------------------------------------------------------------------------------------
EQUITY
EQUITY INCOME GROWTH
FUND FUND FUND
---------------------------- ------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/98 12/31/97 06/30/98 12/31/97 06/30/98 12/31/97
------------ ------------- ----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL CLASS:
Sold ....................... $ 57,184,172 $ 228,484,735 $ 6,556,554 $ 5,765,224 $13,709,030 $18,615,536
Issued as reinvestment of
dividends .................. 908,665 65,414,766 12,621 756,229 2,246 3,513,466
Redeemed ................... (60,756,653) (107,708,003) (1,198,051) (3,723,308) (3,866,671) (6,185,681)
------------ ------------- ----------- ----------- ----------- -----------
Net increase/(decrease) .... $ (2,663,816) $ 186,191,498 $ 5,371,124 $ 2,798,145 $ 9,844,605 $15,943,321
============ ============= =========== =========== =========== ===========
CLASS A:
Sold ....................... $ 14,267,096 $ 8,786,890 $ 957,165 $ 942,518 $ 4,082,500 $ 2,186,449
Issued as reinvestment of
dividends .................. 45,253 2,388,743 6,943 95,931 -- 135,276
Redeemed ................... (9,279,020) (1,756,434) (203,708) (114,131) (1,577,390) (37,655)
------------ ------------- ----------- ----------- ----------- -----------
Net increase/(decrease) .... $ 5,033,329 $ 9,419,199 $ 760,400 $ 924,318 $ 2,505,110 $ 2,284,070
============ ============= =========== =========== =========== ===========
===================================================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold ....................... 3,107,722 13,779,278 368,163 350,240 557,880 845,767
Issued as reinvestment of
dividends .................. 46,750 3,736,368 680 46,977 85 156,313
Redeemed ................... (3,309,023) (6,023,216) (67,364) (233,613) (157,327) (281,676)
------------ ------------- ----------- ----------- ----------- -----------
Net increase/(decrease) .... (154,551) 11,492,430 301,479 163,604 400,638 720,404
============ ============= =========== =========== =========== ===========
CLASS A:
Sold ....................... 771,800 475,368 53,311 55,334 163,048 96,614
Issued as reinvestment of
dividends .................. 2,327 136,928 374 5,980 -- 6,046
Redeemed ................... (484,245) (98,527) (11,216) (6,897) (62,950) (1,870)
------------ ------------- ----------- ----------- ----------- -----------
Net increase/(decrease) .... 289,882 513,769 42,469 54,417 100,098 100,790
============ ============= =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
--------------------------------------------------------------------------------------------------
SMALL-CAP SMALL-CAP
OPPORTUNITY VALUE INDEX
FUND FUND FUND
---------------------------- --------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS PERIOD SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/98 12/31/97 06/30/98 12/31/97(1) 06/30/98 12/31/97
------------ ------------ ----------- ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL CLASS:
Sold ....................... $ 32,123,293 $111,387,891 $ 14,431,667 $ 94,750,916 $ 25,082,777 $138,059,809
Issued as reinvestment of
dividends .................. -- 12,908,326 -- 7,596,815 741,406 5,696,160
Redeemed ................... (13,409,369) (25,701,528) (10,970,569) (10,047,788) (31,964,932) (45,051,822)
------------ ------------ ----------- ------------ ------------ ------------
Net increase/(decrease) .... $ 18,713,924 $ 98,594,689 $ 3,461,098 $ 92,299,943 $ (6,140,749) $ 98,704,147
============ ============ =========== ============ ============ ============
CLASS A:
Sold ....................... $ 4,221,813 $ 2,275,874 $ 352,383 $ 321,431 $ 1,988,065 $ 9,599,426
Issued as reinvestment of
dividends .................. -- 107,321 -- 18,639 31,475 151,528
Redeemed ................... (2,350,673) (327,843) (35,333) (30,374) (978,011) (3,073,777)
------------ ------------ ----------- ------------ ------------ ------------
Net increase/(decrease) .... $ 1,871,140 $ 2,055,352 $ 317,050 $ 309,696 $ 1,041,529 $ 6,677,177
============ ============ =========== ============ ============ ============
==============================================================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold ....................... 1,733,684 6,492,340 406,810 3,097,109 985,678 6,414,886
Issued as reinvestment of
dividends .................. -- 756,547 -- 234,090 27,339 246,569
Redeemed ................... (724,672) (1,438,895) (325,665) (307,896) (1,285,177) (2,025,025)
------------ ------------ ----------- ------------ ------------ ------------
Net increase/(decrease) .... 1,009,012 5,809,992 81,145 3,023,303 (272,160) 4,636,430
============ ============ =========== ============ ============ ============
CLASS A:
Sold ....................... 232,641 125,525 9,784 9,123 78,365 428,098
Issued as reinvestment of
dividends .................. -- 6,308 -- 574 1,160 6,555
Redeemed ................... (127,917) (19,609) (989) (842) (38,571) (147,519)
------------ ------------ ----------- ------------ ------------ ------------
Net increase/(decrease) .... 104,724 112,224 8,795 8,855 40,954 287,134
============ ============ =========== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-------------------------------------------------------------------------------------------
EMERGING
BALANCED INTERNATIONAL MARKETS
FUND FUND FUND
--------------------------- ---------------------------- -------------------------
SIX MONTHS PERIOD SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/98 12/31/97(1) 06/30/98 12/31/97 06/30/98 12/31/97(2)
------------ ----------- ------------ ------------ ---------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL CLASS:
Sold ....................... $ 5,311,718 $66,148,915 $ 26,132,206 $120,897,024 $4,949,548 $20,438,890
Issued as reinvestment of
dividends .................. 1,021,748 1,683,590 -- 10,828,865 -- --
Redeemed ................... (12,951,320) (8,208,620) (14,395,899) (43,158,856) (223,632) --
------------ ----------- ------------ ------------ ---------- -----------
Net increase/(decrease) .... $ (6,617,854) $59,623,885 $ 11,736,307 $ 88,567,033 $4,725,916 $20,438,890
============ =========== ============ ============ ========== ===========
CLASS A:
Sold ....................... $ 1,182,494 $ 688,374 $ 3,069,443 $ 1,215,856 $ 70,089 $ 109,665
Issued as reinvestment of
dividends .................. 21,867 4,659 -- 93,876 -- --
Redeemed ................... (62,536) (50) (2,669,572) (410,562) (36,531) --
------------ ----------- ------------ ------------ ---------- -----------
Net increase/(decrease) .... $ 1,141,825 $ 692,983 $ 399,871 $ 899,170 $ 33,558 $ 109,665
============ =========== ============ ============ ========== ===========
========================================================================================================================
SHARES
- ------
INSTITUTIONAL CLASS:
Sold ....................... 341,637 5,120,712 1,810,048 8,013,256 619,812 2,108,590
Issued as reinvestment of
dividends .................. 65,222 116,698 -- 806,437 -- --
Redeemed ................... (849,957) (588,410) (1,042,825) (3,006,361) (27,181) --
------------ ----------- ------------ ------------ ---------- -----------
Net increase/(decrease) .... (443,098) 4,649,000 767,223 5,813,332 592,631 2,108,590
============ =========== ============ ============ ========== ===========
CLASS A:
Sold ....................... 76,670 46,556 222,672 78,331 8,200 11,266
Issued as reinvestment of
dividends .................. 1,395 317 -- 7,008 -- --
Redeemed ................... (3,960) (3) (190,186) (29,037) (4,602) --
------------ ----------- ------------ ------------ ---------- -----------
Net increase/(decrease) .... 74,105 46,870 32,486 56,302 3,598 11,266
============ =========== ============ ============ ========== ===========
<FN>
- -----------
(1) For the period 03/24/97 (commencement of operations) to 12/31/97.
(2) For the period 10/21/97 (commencement of operations) to 12/31/97.
</FN>
</TABLE>
See Notes to Financial Statements.
74 & 75
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET
ASSET DISTRIBUTIONS ASSET
VALUE NET REALIZED FROM NET VALUE
BEGINNING INVESTMENT LOSS ON INVESTMENT CAPITAL END OF TOTAL
OF PERIOD INCOME INVESTMENTS INCOME CONTRIBUTIONS PERIOD RETURN
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------
GOVERNMENT MONEY FUND
- ---------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $1.00 $0.027 $ -- $(0.027) $ -- $1.00 2.72%(2)
12/31/97 1.00 0.053 -- (0.053) -- 1.00 5.48
12/31/96 1.00 0.051 -- (0.051) -- 1.00 5.24
12/31/95 1.00 0.056 -- (0.056) -- 1.00 5.79
05/16/94(4) to 12/31/94 1.00 0.028 -- (0.028) -- 1.00 2.82(2)
CLASS A
01/01/98 to 06/30/98(5) $1.00 $0.025 $ -- $(0.025) $ -- $1.00 2.55%(2)
12/31/97 1.00 0.050 -- (0.050) -- 1.00 5.17
12/31/96 1.00 0.049 -- (0.049) -- 1.00 5.00
12/31/95 1.00 0.054 -- (0.054) -- 1.00 5.51
12/31/94 1.00 0.037 -- (0.037) -- 1.00 3.72
12/31/93 1.00 0.026 -- (0.026) -- 1.00 2.62
- ----------
MONEY FUND
- ----------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $1.00 $0.028 $ -- $(0.028) $ -- $1.00 2.78%(2)
12/31/97 1.00 0.055 (0.001) (0.055) 0.001 1.00 5.66
12/31/96 1.00 0.052 -- (0.052) -- 1.00 5.38
12/31/95 1.00 0.057 -- (0.057) -- 1.00 5.86
01/05/94(4) to 12/31/94 1.00 0.039 -- (0.039) -- 1.00 4.08(2)
CLASS A
01/01/98 to 06/30/98(5) $1.00 $0.026 $ -- $(0.026) $ -- $1.00 2.61%(2)
12/31/97 1.00 0.052 (0.001) (0.052) 0.001 1.00 5.35
12/31/96 1.00 0.050 -- (0.050) -- 1.00 5.11
12/31/95 1.00 0.054 -- (0.054) -- 1.00 5.58
12/31/94 1.00 0.037 -- (0.037) -- 1.00 3.79
12/31/93 1.00 0.027 -- (0.027) -- 1.00 2.69
- ---------------------
TAX-EXEMPT MONEY FUND
- ---------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $1.00 $0.017 $ -- $(0.017) $ -- $1.00 1.69%(2)
12/31/97 1.00 0.034 -- (0.034) -- 1.00 3.47
12/31/96 1.00 0.031 -- (0.031) -- 1.00 3.19
12/31/95 1.00 0.035 -- (0.035) -- 1.00 3.60
01/05/94(4) to 12/31/94 1.00 0.025 -- (0.025) -- 1.00 2.56(2)
CLASS A
01/01/98 to 06/30/98(5) $1.00 $0.015 $ -- $(0.015) $ -- $1.00 1.53%(2)
12/31/97 1.00 0.031 -- (0.031) -- 1.00 3.17
12/31/96 1.00 0.029 -- (0.029) -- 1.00 2.94
12/31/95 1.00 0.033 -- (0.033) -- 1.00 3.31
12/31/94 1.00 0.023 -- (0.023) -- 1.00 2.30
12/31/93 1.00 0.020 -- (0.020) -- 1.00 1.99
</TABLE>
<TABLE>
<CAPTION>
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME
PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET
(000) ASSETS WAIVERS) ASSETS
============================================================================================================
<S> <C> <C> <C> <C>
- ---------------------
GOVERNMENT MONEY FUND
- ---------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $ 104,264 0.21%(1) 0.26%(1) 5.42%(1)
12/31/97 63,970 0.23 0.28 5.36
12/31/96 37,169 0.31 0.32 5.12
12/31/95 18,367 0.31 0.32 5.62
05/16/94(4) to 12/31/94 9,617 0.29(1) 0.31(1) 4.52(1)
CLASS A
01/01/98 to 06/30/98(5) $ 278,200 0.54%(1) 0.61%(1) 5.09%(1)
12/31/97 247,594 0.53 0.63 5.05
12/31/96 206,073 0.54 0.67 4.89
12/31/95 264,426 0.57 0.67 5.36
12/31/94 229,619 0.60 0.66 3.62
12/31/93 263,909 0.61 0.70 2.57
- ----------
MONEY FUND
- ----------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $1,133,783 0.20%(1) 0.24%(1) 5.55%(1)
12/31/97 1,028,091 0.21 0.26 5.54
12/31/96 369,417 0.27 0.28 5.23
12/31/95 98,837 0.29 0.30 5.69
01/05/94(4) to 12/31/94 31,990 0.29(1) 0.30(1) 4.79(1)
CLASS A
01/01/98 to 06/30/98(5) $ 706,253 0.53%(1) 0.59%(1) 5.21%(1)
12/31/97 677,804 0.51 0.61 5.23
12/31/96 461,213 0.52 0.63 5.00
12/31/95 423,588 0.56 0.65 5.42
12/31/94 530,366 0.55 0.65 3.79
12/31/93 348,984 0.57 0.72 2.66
- ---------------------
TAX-EXEMPT MONEY FUND
- ---------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $ 685,106 0.24%(1) 0.24%(1) 3.39%(1)
12/31/97 497,986 0.25 0.26 3.41
12/31/96 388,404 0.29 0.29 3.14
12/31/95 212,146 0.29 0.29 3.52
01/05/94(4) to 12/31/94 237,100 0.28(1) 0.30(1) 2.99(1)
CLASS A
01/01/98 to 06/30/98(5) $ 197,109 0.55%(1) 0.59%(1) 3.07%(1)
12/31/97 223,071 0.54 0.61 3.13
12/31/96 178,849 0.53 0.64 2.89
12/31/95 170,570 0.56 0.65 3.25
12/31/94 123,501 0.54 0.65 2.20
12/31/93 168,440 0.54 0.71 1.97
</TABLE>
See Notes to Financial Statements.
76 & 77
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET NET
ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET UNREALIZED FROM NET FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT REALIZED END OF TOTAL
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD RETURN
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------
SHORT/INTERMEDIATE FUND
- -----------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $10.21 $0.306 $ 0.030 $(0.306) $ -- $10.24 3.33%(2)
12/31/97 10.14 0.633 0.070 (0.633) -- 10.21 7.15
02/26/96(4) to 12/31/96 10.30 0.517 (0.160) (0.517) -- 10.14 3.61(2)
CLASS A
01/01/98 to 06/30/98(5) $10.21 $0.294 $ 0.030 $(0.294) $ -- $10.24 3.20%(2)
12/31/97 10.14 0.608 0.070 (0.608) -- 10.21 6.89
12/31/96 10.38 0.594 (0.247) (0.587) -- 10.14 3.51
12/31/95 9.66 0.588 0.720 (0.588) -- 10.38 13.88
12/31/94 10.34 0.559 (0.694) (0.545) -- 9.66 (1.29)
12/31/93 10.22 0.563 0.435 (0.564) (0.314) 10.34 9.91
- ---------
BOND FUND
- ---------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $10.20 $0.301 $ 0.060 $(0.301) $ -- $10.26 $3.58%(2)
12/31/97 10.07 0.628 0.284 (0.628) (0.154) 10.20 9.41
04/16/96(4) to 12/31/96 10.00 0.425 0.103 (0.425) (0.033) 10.07 5.40(2)
CLASS A
01/01/98 to 06/30/98(5) $10.20 $0.288 $ 0.060 $(0.288) $ -- $10.26 $3.45%(2)
12/31/97 10.07 0.603 0.284 (0.603) (0.154) 10.20 9.14
04/22/96(4) to 12/31/96 9.99 0.402 0.113 (0.402) (0.033) 10.07 5.27(2)
- ----------------------------
INTERMEDIATE GOVERNMENT FUND
- ----------------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $16.54 $0.493 $(0.010) $(0.493) $ -- $16.53 2.96%(2)
03/24/97(4) to 12/31/97 16.12 0.793 0.461 (0.793) (0.041) 16.54 7.96(2)
CLASS A
01/01/98 to 06/30/98(5) $16.54 $0.473 $(0.010) $(0.473) $ -- $16.53 2.83%(2)
04/16/97(4) to 12/31/97 16.06 0.702 0.521 (0.702) (0.041) 16.54 7.76(2)
- ----------------------------
INTERMEDIATE TAX-EXEMPT FUND
- ----------------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $10.75 $0.211 $(0.030) $(0.211) $ -- $10.72 1.70%(2)
12/31/97 10.58 0.442 0.220 (0.442) (0.050) 10.75 6.41
02/26/96(4) to 12/31/96 10.74 0.381 (0.124) (0.381) (0.036) 10.58 2.49(2)
CLASS A
01/01/98 to 06/30/98(5) $10.75 $0.198 $(0.030) $(0.198) $ -- $10.72 1.57%(2)
12/31/97 10.58 0.327 0.220 (0.327) (0.050) 10.75 6.14
03/13/96(4) to 12/31/96 10.55 0.084 0.066 (0.084) (0.036) 10.58 1.44(2)
- ---------------
TAX-EXEMPT FUND
- ---------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $10.52 $0.224 $(0.010) $(0.224) $ -- $10.51 2.06%(2)
12/31/97 10.25 0.461 0.391 (0.461) (0.121) 10.52 8.55
02/26/96(4) to 12/31/96 10.56 0.402 (0.094) (0.402) (0.216) 10.25 3.04(2)
CLASS A
01/01/98 to 06/30/98(5) $10.52 $0.211 $(0.010) $(0.211) $ -- $10.51 1.93%(2)
12/31/97 10.25 0.435 0.391 (0.435) (0.121) 10.52 8.28
10/02/96(4) to 12/31/96 10.33 0.105 0.136 (0.105) (0.216) 10.25 2.34(2)
</TABLE>
<TABLE>
<CAPTION>
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME PORTFOLIO
PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET TURNOVER
(000) ASSETS WAIVERS) ASSETS RATE
=================================================================================================================
<S> <C> <C> <C> <C> <C>
- -----------------------
SHORT/INTERMEDIATE FUND
- -----------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $319,880 0.60%(1) 0.90%(1) 6.02%(1) 31.41%
12/31/97 288,886 0.60 0.89 6.24 98.08
02/26/96(4) to 12/31/96 255,573 0.60(1) 0.90(1) 6.06(1) 186.02
CLASS A
01/01/98 to 06/30/98(5) $ 3,696 0.85%(1) 1.15%(1) 5.77%(1) 31.41%
12/31/97 5,922 0.85 1.14 5.99 98.08
12/31/96 4,432 0.62 0.92 5.59 186.02
12/31/95 51,814 0.60 0.96 5.91 194.94
12/31/94 44,333 0.60 0.92 5.29 140.99
12/31/93 74,057 0.60 0.94 5.32 215.07
- ---------
BOND FUND
- ---------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $171,109 0.60%(1) 0.89%(1) 5.93%(1) 44.79%
12/31/97 140,447 0.60 0.89 6.25 138.30
04/16/96(4) to 12/31/96 43,142 0.60(1) 0.98(1) 6.03(1) 116.02
CLASS A
01/01/98 to 06/30/98(5) $ 1,712 0.85%(1) 1.14%(1) 5.68%(1) 44.79%
12/31/97 936 0.85 1.14 6.00 138.30
04/22/96(4) to 12/31/96 130 0.85(1) 1.23(1) 5.87(1) 116.02
- -----------------------------
INTERMEDIATE GOVERNMENT FUND
- -----------------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $104,146 0.50%(1) 0.93%(1) 6.01%(1) 59.12%
03/24/97(4) to 12/31/97 99,359 0.50(1) 0.91(1) 6.31(1) 84.89(1)
CLASS A
01/01/98 to 06/30/98(5) $ 1,094 0.75%(1) 1.18%(1) 5.76%(1) 59.12%
04/16/97(4) to 12/31/97 716 0.75(1) 1.16(1) 6.06(1) 84.89(1)
- ----------------------------
INTERMEDIATE TAX-EXEMPT FUND
- ----------------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $200,475 0.80%(1) 0.80%(1) 3.96%(1) 50.61%
12/31/97 193,009 0.79 0.79 4.16 48.72
02/26/96(4) to 12/31/96 208,690 0.79(1) 0.82(1) 4.28(1) 57.23
CLASS A
01/01/98 to 06/30/98(5) $ 716 1.05%(1) 1.05%(1) 3.71%(1) 50.61%
12/31/97 644 1.04 1.04 3.91 48.72
03/13/96(4) to 12/31/96 -- 1.04(1) 1.07(1) 4.33(1) 57.23
- ---------------
TAX-EXEMPT FUND
- ---------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $174,140 0.79%(1) 0.79%(1) 4.30%(1) 44.10%
12/31/97 179,871 0.80 0.80 4.47 61.52
02/26/96(4) to 12/31/96 165,388 0.80(1) 0.81(1) 4.60(1) 61.60
CLASS A
01/01/98 to 06/30/98(5) $ 717 1.04%(1) 1.04%(1) 4.05%(1) 44.10%
12/31/97 644 1.05 1.05 4.22 61.52
10/02/96(4) to 12/31/96 38 1.05(1) 1.06(1) 4.35(1) 61.60
</TABLE>
See Notes to Financial Statements.
78 & 79
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET NET
ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET UNREALIZED FROM NET FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT REALIZED END OF TOTAL
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD RETURN
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------
CONVERTIBLE SECURITIES FUND
- ---------------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $28.52 $ 0.595 $0.672 $(0.577) $ -- $29.21 4.42%(2)
03/24/97(4) to 12/31/97 29.15 0.914 3.120 (0.897) (3.767) 28.52 14.24(2)
CLASS A
01/01/98 to 06/30/98(5) $28.52 $ 0.592 $0.636 $(0.538) $ -- $29.21 4.28%(2)
03/26/97(4) to 12/31/97 29.30 0.690 3.122 (0.825) (3.767) 28.52 13.39(2)
- -----------
EQUITY FUND
- -----------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $17.59 $ 0.069 $2.037 $(0.066) $ -- $19.63 11.98%(2)
12/31/97 15.53 0.234 5.190 (0.235) (3.129) 17.59 35.89
02/26/96(4) to 12/31/96 15.30 0.189 1.898 (0.193) (1.664) 15.53 13.66(2)
CLASS A
01/01/98 to 06/30/98(5) $17.59 $ 0.043 $2.036 $(0.039) $ -- $19.63 11.82%(2)
12/31/97 15.53 0.174 5.190 (0.175) (3.129) 17.59 35.45
12/31/96 13.99 0.451 2.926 (0.173) (1.664) 15.53 24.15
12/31/95 11.28 0.229 3.827 (0.232) (1.114) 13.99 36.26
12/31/94 12.86 0.263 (0.514) (0.263) (1.066) 11.28 (2.05)
12/31/93 11.57 0.197 1.904 (0.204) (0.607) 12.86 18.23
- ------------------
EQUITY INCOME FUND
- ------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $16.32 $ 0.108 $2.414 $(0.102) $ -- $18.74 15.46%(2)
12/31/97 13.73 0.272 4.050 (0.268) (1.464) 16.32 31.90
02/26/96(4) to 12/31/96 13.34 0.270 1.387 (0.269) (0.998) 13.73 12.46(2)
CLASS A
01/01/98 to 06/30/98(5) $16.31 $ 0.086 $2.419 $(0.075) $ -- $18.74 15.37%(2)
12/31/97 13.72 0.237 4.037 (0.220) (1.464) 16.31 31.53
04/18/96(4) to 12/31/96 13.02 0.179 1.732 (0.213) (0.998) 13.72 14.67(2)
- -----------
GROWTH FUND
- -----------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $22.67 $ 0.009 $3.545 $(0.004) $ -- $26.22 15.68%(2)
12/31/97 18.69 0.048 6.026 (0.048) (2.046) 22.67 32.81
02/26/96(4) to 12/31/96 17.01 0.062 2.746 (0.063) (1.065) 18.69 16.43(2)
CLASS A
01/01/98 to 06/30/98(5) $22.67 $(0.011) $3.511 $ -- $ -- $26.17 15.44%(2)
12/31/97 18.69 0.004 6.026 (0.004) (2.046) 22.67 32.54
04/19/96(4) to 12/31/96 16.49 0.030 3.273 (0.038) (1.065) 18.69 19.95(2)
- --------------------------
SMALL-CAP OPPORTUNITY FUND
- --------------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $17.71 $(0.028) $1.288 $ -- $ -- $18.97 7.11%(2)
12/31/97 15.52 0.007 3.865 (0.012) (1.670) 17.71 25.47
02/26/96(4) to 12/31/96 14.24 0.057 1.998 (0.057) (0.718) 15.52 14.49(2)
CLASS A
01/01/98 to 06/30/98(5) $17.66 $(0.026) $1.266 $ -- $ -- $18.90 7.02%(2)
12/31/97 15.51 (0.003) 3.823 -- (1.670) 17.66 25.14
04/19/96(4) to 12/31/96 14.25 0.032 1.996 (0.050) (0.718) 15.51 14.29(2)
</TABLE>
<TABLE>
<CAPTION>
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME PORTFOLIO AVERAGE
PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET TURNOVER COMMISSION
(000) ASSETS WAIVERS) ASSETS RATE RATE(3)
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------
CONVERTIBLE SECURITIES FUND
- ---------------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $ 54,054 0.92%(1) 1.03%(1) 4.03%(1) 30.82% $0.055
03/24/97(4) to 12/31/97 59,384 0.92(1) 0.96(1) 3.76(1) 93.24(1) 0.053
CLASS A
01/01/98 to 06/30/98(5) $ 330 1.17%(1) 1.28%(1) 3.78%(1) 30.82% $0.055
03/26/97(4) to 12/31/97 85 1.17(1) 1.21(1) 3.51(1) 93.24(1) 0.053
- -----------
EQUITY FUND
- -----------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $941,090 0.88%(1) 0.88%(1) 0.74%(1) 37.43% $0.058
12/31/97 845,829 0.88 0.88 1.33 81.48 0.054
02/26/96(4) to 12/31/96 568,400 0.90(1) 0.90(1) 1.43(1) 75.20 0.056
CLASS A
01/01/98 to 06/30/98(5) $ 25,624 1.13%(1) 1.13%(1) 0.49%(1) 37.43% $0.058
12/31/97 17,859 1.13 1.13 1.08 81.48 0.054
12/31/96 7,792 0.94 0.94 1.47 75.20 0.056
12/31/95 61,256 0.96 0.97 1.75 75.93 --
12/31/94 38,920 0.90 0.92 1.94 87.83 --
12/31/93 47,241 0.93 0.96 1.59 57.31 --
- ------------------
EQUITY INCOME FUND
- ------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $ 52,061 0.93%(1) 0.97%(1) 1.26%(1) 9.37% $0.058
12/31/97 40,424 0.93 0.96 1.69 29.87 0.058
02/26/96(4) to 12/31/96 31,760 0.93(1) 0.97(1) 2.36(1) 52.77 0.059
CLASS A
01/01/98 to 06/30/98(5) $ 2,222 1.18%(1) 1.22%(1) 1.01%(1) 9.37% $0.058
12/31/97 1,241 1.18 1.21 1.44 29.87 0.058
04/18/96(4) to 12/31/96 298 1.18(1) 1.19(1) 2.11(1) 52.77 0.059
- -----------
GROWTH FUND
- -----------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $136,702 1.10%(1) 1.11%(1) 0.07%(1) 17.63% $0.059
12/31/97 109,140 1.10 1.11 0.22 37.02 0.058
02/26/96(4) to 12/31/96 76,516 1.10(1) 1.14(1) 0.42(1) 35.36 0.058
CLASS A
01/01/98 to 06/30/98(5) $ 5,814 1.35%(1) 1.36%(1) (0.18)%(1) 17.63% $0.059
12/31/97 2,766 1.35 1.36 (0.03) 37.02 0.058
04/19/96(4) to 12/31/96 397 1.35(1) 1.39(1) 0.17(1) 35.36 0.058
- --------------------------
SMALL-CAP OPPORTUNITY FUND
- --------------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $313,043 1.20%(1) 1.21%(1) (0.31)%(1) 22.29% $0.056
12/31/97 274,353 1.20 1.21 0.03 39.63 0.054
02/26/96(4) to 12/31/96 150,306 1.20(1) 1.22(1) 0.46(1) 46.13 0.058
CLASS A
01/01/98 to 06/30/98(5) $ 4,639 1.45%(1) 1.46%(1) (0.56)%(1) 22.29% $0.056
12/31/97 2,485 1.45 1.46 (0.22) 39.63 0.054
04/19/96(4) to 12/31/96 443 1.45(1) 1.47(1) 0.10(1) 46.13 0.058
</TABLE>
See Notes to Financial Statements.
80 & 81
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET NET
ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET UNREALIZED FROM NET FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT REALIZED END OF TOTAL
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD RETURN
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------
SMALL-CAP VALUE FUND
- --------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $33.02 $0.070 $2.640 $ -- $ -- $35.73 8.21%(2)
03/24/97(4) to 12/31/97 28.29 0.146 7.467 (0.139) (2.744) 33.02 27.11(2)
CLASS A
01/01/98 to 06/30/98(5) $33.02 $0.025 $2.635 $ -- $ -- $35.68 8.06%(2)
07/10/97(4) to 12/31/97 32.31 0.028 3.462 (0.036) (2.744) 33.02 10.95(2)
- ----------
INDEX FUND
- ----------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $23.51 $0.153 $3.964 $(0.147) $ -- $27.48 17.52%(2)
12/31/97 18.48 0.278 5.742 (0.281) (0.709) 23.51 32.78
02/26/96(4) to 12/31/96 16.72 0.268 2.104 (0.268) (0.344) 18.48 14.26(2)
CLASS A
01/01/98 to 06/30/98(5) $23.51 $0.121 $3.947 $(0.108) $ -- $27.47 17.31%(2)
12/31/97 18.48 0.247 5.725 (0.233) (0.709) 23.51 32.51
04/19/96(4) to 12/31/96 16.35 0.188 2.511 (0.225) (0.344) 18.48 16.56(2)
- -------------
BALANCED FUND
- -------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $14.93 $0.246 $0.804 $(0.240) $ -- $15.74 7.05%(2)
03/24/97(4) to 12/31/97 12.74 0.377 2.185 (0.372) -- 14.93 20.24(2)
CLASS A
01/01/98 to 06/30/98(5) $14.93 $0.221 $0.802 $(0.213) $ -- $15.74 6.87%(2)
04/16/97(4) to 12/31/97 12.56 0.301 2.411 (0.342) -- 14.93 21.72(2)
- ------------------
INTERNATIONAL FUND
- ------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $13.33 $0.149 $0.411 $ -- $ -- $13.89 4.20%(2)
12/31/97 15.46 0.116 (0.858) (0.125) (1.263) 13.33 (4.87)
02/26/96(4) to 12/31/96 15.04 0.128 0.485 (0.125) (0.068) 15.46 4.08(2)
CLASS A
01/01/98 to 06/30/98(5) $13.33 $0.130 $0.410 $ -- $ -- $13.87 4.05%(2)
12/31/97 15.46 0.078 (0.876) (0.069) (1.263) 13.33 (5.21)
03/13/96(4) to 12/31/96 14.69 0.091 0.860 (0.113) (0.068) 15.46 6.48(2)
- ---------------------
EMERGING MARKETS FUND
- ---------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $ 8.55 $0.030 $(2.040) $ -- $ -- $ 6.54 (23.51)%(2)
10/21/97(4) to 12/31/97 10.00 0.006 (1.456) -- -- 8.55 (14.50)(2)
CLASS A
01/01/98 to 06/30/98(5) $ 8.54 $0.023 $(2.053) $ -- $ -- $ 6.51 (23.77)%(2)
10/21/97(4) to 12/31/97 10.00 0.002 (1.462) -- -- 8.54 (14.60)(2)
</TABLE>
<TABLE>
<CAPTION>
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME PORTFOLIO AVERAGE
PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET TURNOVER COMMISSION
(000) ASSETS WAIVERS) ASSETS RATE RATE(3)
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- --------------------
SMALL-CAP VALUE FUND
- --------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $110,922 0.99%(1) 1.07%(1) 0.42%(1) 37.11% $0.056
03/24/97(4) to 12/31/97 99,816 0.99(1) 1.06(1) 0.63(1) 91.66(1) 0.055
CLASS A
01/01/98 to 06/30/98(5) $ 630 1.24%(1) 1.32%(1) 0.17%(1) 37.11% $0.056
07/10/97(4) to 12/31/97 292 1.24(1) 1.31(1) 0.38(1) 91.66(1) 0.055
- ----------
INDEX FUND
- ----------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $333,950 0.45%(1) 0.47%(1) 1.19%(1) 2.10% $0.037
12/31/97 292,196 0.45 0.47 1.39 7.10 0.020
02/26/96(4) to 12/31/96 143,954 0.45(1) 0.49(1) 1.85(1) 4.71 0.038
CLASS A
01/01/98 to 06/30/98(5) $ 9,237 0.70%(1) 0.72%(1) 0.94%(1) 2.10% $0.037
12/31/97 6,942 0.70 0.72 1.14 7.10 0.020
04/19/96(4) to 12/31/96 150 0.70(1) 0.74(1) 1.60(1) 4.71 0.038
- -------------
BALANCED FUND
- -------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $ 66,210 0.88%(1) 0.97%(1) 3.13%(1) 44.08% $0.057
03/24/97(4) to 12/31/97 69,415 0.88(1) 0.92(1) 3.45(1) 108.29(1) 0.058
CLASS A
01/01/98 to 06/30/98(5) $ 1,904 1.13%(1) 1.22%(1) 2.88%(1) 44.08% $0.057
04/16/97(4) to 12/31/97 700 1.13(1) 1.17(1) 3.20(1) 108.29(1) 0.058
- ------------------
INTERNATIONAL FUND
- ------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $190,017 1.40%(1) 1.40%(1) 2.20%(1) 28.07% $0.008
12/31/97 172,158 1.40 1.42 0.82 93.33 0.006
02/26/96(4) to 12/31/96 109,747 1.36(1) 1.38(1) 0.99(1) 6.72 0.020
CLASS A
01/01/98 to 06/30/98(5) $ 1,768 1.65%(1) 1.65%(1) 1.95%(1) 28.07% $0.008
12/31/97 1,265 1.65 1.67 0.57 93.33 0.006
03/13/96(4) to 12/31/96 597 1.61(1) 1.63(1) 0.35(1) 6.72 0.020
- ---------------------
EMERGING MARKETS FUND
- ---------------------
INSTITUTIONAL CLASS
01/01/98 to 06/30/98(5) $ 17,657 1.75%(1) 2.09%(1) 1.38%(1) 13.76% $0.002
10/21/97(4) to 12/31/97 18,023 1.75(1) 2.09(1) 0.43(1) -- 0.003
CLASS A
01/01/98 to 06/30/98(5) $ 97 2.00%(1) 2.34%(1) 1.13%(1) 13.76% $0.002
10/21/97(4) to 12/31/97 96 2.00(1) 2.34(1) 0.18(1) -- 0.003
<FN>
(1) Annualized.
(2) Total returns for periods of less than one year are not annualized.
(3) Computed by dividing the total amount of commission paid by the total number
of shares purchased and sold during the period.
(4) Date commenced operations.
(5) Unaudited.
</FN>
</TABLE>
See Notes to Financial Statements.
82 & 83
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1998
1. ORGANIZATION
HT Insight Funds, Inc., doing business as Harris Insight Funds (the
"Company"), was incorporated in Maryland on September 16, 1987. The Company is
an open-end management investment company and currently offers five diversified
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. The Trust is an open-end management investment company and presently
offers thirteen diversified investment portfolios. The portfolios of the Company
and the Trust (each a "Fund" and collectively, the "Funds") are as follows:
COMPANY:
EQUITY FUNDS:
Harris Insight Equity Fund ("Equity Fund")
FIXED INCOME FUNDS:
Harris Insight Short/Intermediate Bond Fund ("Short/Intermediate Fund")
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")
TRUST:
EQUITY FUNDS:
Harris Insight Equity Income Fund ("Equity Income Fund")
Harris Insight Growth Fund ("Growth Fund")
Harris Insight Small-Cap Opportunity Fund ("Small-Cap Opportunity 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")
Harris Insight Emerging Markets Fund ("Emerging Markets Fund")
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")
Each of the Funds 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.
84
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1998
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 maturing in
more than 60 days 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 when the
Trust's Board of Trustees or the Company's Board of Directors, as the case may
be, has determined that amortized cost valuation represents fair value.
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 Emerging Markets 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 relevant rates of exchange prevailing on the respective dates of
such transactions.
The International Fund and the Emerging Markets 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 Emerging Markets 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.
85
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1998
(D) DISTRIBUTIONS -- Each of the Funds declares dividends from net
investment income. Dividends from the Money Market Funds and the Fixed Income
Funds (other than the Convertible Securities Fund) are declared daily and paid
monthly. Dividends from the Convertible Securities Fund and Equity Funds (other
than Small-Cap Opportunity Fund, Growth Fund, Small-Cap Value Fund,
International Fund and Emerging Markets Fund) are declared and paid quarterly.
Dividends from the Growth Fund are declared and paid semi-annually. Dividends
from the Small-Cap Opportunity Fund, Small-Cap Value Fund, International Fund
and the Emerging Markets 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 in which the difference arises.
(E) FUTURES CONTRACTS -- The Funds may seek to hedge all or a portion of
their investments through the use of securities index and other 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 Funds each day, reflecting the daily change in the value of the contracts
and are recorded as an unrealized gain or loss. When the contract is closed, the
Funds 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 futures 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 Trust has been deferred and is being
amortized over 60 months from commencement of operations of the respective 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 of a Fund are
allocated between the classes of shares of the Fund based upon the relative net
assets of the classes.
(H) DOLLAR ROLLS -- The Funds may enter into mortgage dollar rolls in which
a Fund sells mortgage-backed 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.
86
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1998
3. REPURCHASE AGREEMENTS
Certain Funds invest in repurchase agreements. Securities pledged as
collateral for repurchase agreements are held by a 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") for each Fund, pursuant to an
advisory contract 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 Securities Fund 0.70%
Equity Fund 0.70%
Equity Income Fund 0.70%
Growth Fund 0.90%
Small-Cap Opportunity Fund 1.00%
Small-Cap Value Fund 0.80%
Index Fund 0.25%
Balanced Fund 0.60%
International Fund 1.05%
Emerging Markets Fund 1.25%
87
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1998
Harris Trust may, at its discretion, voluntarily waive all or any portion
of its advisory fee for any Fund. For the six months ended June 30, 1998,
advisory fees and waivers for certain Funds were as follows:
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
------------ -------- ------------
Short/Intermediate Fund ....... $1,104,836 $475,166 $ 629,670
Bond Fund ..................... 517,135 230,254 286,881
Intermediate Government Fund .. 332,690 221,158 111,532
Convertible Securities Fund ... 191,847 28,978 162,869
Equity Income Fund ............ 167,153 8,934 158,219
Growth Fund ................... 570,454 5,510 564,944
Small-Cap Opportunity Fund .... 1,482,042 21,475 1,460,567
Small-Cap Value Fund .......... 415,953 41,773 374,180
Index Fund .................... 400,463 31,414 369,049
Balanced ...................... 204,366 28,954 175,412
Emerging Markets Fund ......... 126,740 34,360 92,380
There were no advisory fee waivers for the other Funds.
Harris Trust has entered into Portfolio Management Agreements with Harris
Investment Management, Inc. ("HIM" or the "Portfolio Management Agent") 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 receives a fee directly from Harris Trust, not from
the Funds. HIM is a subsidiary of Harris Trust.
Hansberger Global Investors, Inc. ("Hansberger") has entered into an
Investment Sub-Advisory Agreement with HIM with respect to the International
Fund and the Emerging Markets Fund. Pursuant to the agreement Hansberger selects
and manages the securities in which these Funds invest. Hansberger, as
Sub-Adviser, receives a fee directly from HIM and not from the Funds.
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. ("PFPC" or the "Sub-Administrator
and Accounting Services Agent"). Under these Agreements, the Administrator
compensates the Sub-Administrator and the Sub-Administrator and Accounting
Services Agent for providing such services. Harris Trust also serves as the
transfer and dividend disbursing agent of the Funds (the "Transfer Agent").
Harris Trust has entered into a Sub-Transfer Agency Services Agreement with PFPC
(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.
88
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1998
Funds Distributor provides services as distributor (the "Distributor") in
connection with sales of shares of the Funds. For the six months ended June 30,
1998, fees for services rendered by the Distributor were paid by the
Administrator.
The Company has a compensation arrangement under which payment of
directors' fees may be deferred by a director. Interest is accrued on the
deferred balances and is included in directors' fees and expenses. On June 30,
1998, the accumulated balance of deferred directors' fees and interest thereon
relating to all Funds comprising the Company was approximately $203,300, a
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 six months ended June 30, 1998, PFPC, Inc. and Funds
Distributor received in aggregate fees and expenses of $2,138,809 and
$1,740,003, respectively, from the Administrator for services rendered under
various agreements described above. For the six months ended June 30, 1998,
Funds Distributor voluntarily waived fees of $81,411 for the Government Money
Fund and $393,232 for the Money Fund.
5. SERVICE PLANS
The Company and the Trust have adopted a Service Plan (the "Plan") for the
Class A shares of each Fund. Under the Plan, each Fund may pay banks and other
institutions ("Service Organizations") for shareholder support services that
they provide, at a rate of up to 0.25% (on an annualized basis) of the average
daily net asset value of the Fund's Class A shares.
Under a separate Service Plan adopted by the Money Market Funds pursuant to
Rule 12b-1 under the Investment Company Act of 1940 (the "12b-1 Plan"), those
Funds may make payments to Service Organizations for shareholder support
services and also may bear the costs connected with distribution and other
services, at a rate of up to 0.10% (on an annualized basis) of the average daily
net asset value of each Fund's Class A shares.
For the six months ended June 30, 1998, the non-Money Market Funds paid the
following shareholder service fees pursuant to the Plan, including fees paid to
Harris Trust and Funds Distributor:
Short/Intermediate Fund ............... $ 7,990
Bond Fund ............................. 1,530
Intermediate Government Fund .......... 1,082
Intermediate Tax-Exempt Fund .......... 968
Tax-Exempt Fund ....................... 855
Convertible Securities Fund ........... 280
Equity Fund ........................... 30,022
Equity Income Fund .................... 2,136
Growth Fund ........................... 4,570
Small-Cap Opportunity Fund ............ 3,873
Small-Cap Value Fund .................. 560
Index Fund ............................ 10,255
Balanced Fund ......................... 1,722
International Fund .................... 2,170
Emerging Markets Fund ................. 141
89
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1998
For the six months ended June 30, 1998, shareholder service fees paid by
the Money Market Funds under the Plan were $337,089, $858,573, and $284,824 and
fees paid under the 12b-1 Plan were $101,619, $287,206, and $62,076 (net of
voluntary waivers of $25,496, $36,921, and $44,789) for the Class A shares of
the Government Money Fund, Money Fund, and Tax-Exempt Money Fund, respectively.
6. INVESTMENT TRANSACTIONS
The cost of investments at June 30, 1998 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 six
months ended June 30, 1998 were as follows:
PURCHASES SALES
------------ ------------
Short/Intermediate Fund ............... $ 84,654,764 $ 52,027,242
Bond Fund ............................. 45,025,250 28,768,025
Intermediate Government Fund .......... 14,405,651 3,086,324
Intermediate Tax-Exempt Fund .......... 103,306,639 97,641,206
Tax-Exempt Fund ....................... 78,839,759 76,926,127
Convertible Securities Fund ........... 16,403,063 21,071,533
Equity Fund ........................... 343,164,997 338,229,350
Equity Income Fund .................... 8,042,803 4,249,803
Growth Fund ........................... 33,979,495 21,997,995
Small-Cap Opportunity Fund ............ 90,693,831 65,117,444
Small-Cap Value Fund .................. 44,760,993 36,700,303
Index Fund ............................ 6,505,337 17,720,856
Balanced Fund ......................... 18,388,919 26,869,260
International Fund .................... 50,118,810 49,937,065
Emerging Markets Fund ................. 9,849,810 2,513,071
Purchases and sales of U.S. government securities, excluding short-term
securities, of the non-Money Market Funds during the six months ended June 30,
1998 were as follows:
PURCHASES SALES
------------ ------------
Short/Intermediate Fund ............... $58,117,763 $46,515,822
Bond Fund ............................. 51,290,366 39,953,712
Intermediate Government Fund .......... 56,044,959 55,296,548
Balanced Fund ......................... 11,248,097 11,336,587
90
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1998
At June 30, 1998, gross unrealized appreciation (depreciation) for each
non-Money Market Fund was as follows:
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------ -------------- --------------
Short/Intermediate Fund ....... $ 4,679,310 $ (2,608,922) $ 2,070,388
Bond Fund ..................... 3,194,842 (1,103,037) 2,091,805
Intermediate Government Fund .. 1,758,684 (347,745) 1,410,939
Intermediate Tax-Exempt Fund .. 3,788,299 (139,881) 3,648,418
Tax-Exempt Bond Fund .......... 7,064,317 (40,770) 7,023,547
Convertible Securities Fund ... 7,649,973 (1,968,906) 5,681,067
Equity Fund ................... 253,208,665 (18,757,102) 234,451,563
Equity Income Fund ............ 19,685,090 (750,374) 18,934,716
Growth Fund ................... 51,856,271 (2,084,683) 49,771,588
Small-Cap Opportunity Fund .... 102,202,665 (13,406,898) 88,795,767
Small-Cap Value Fund .......... 22,058,308 (4,880,391) 17,177,917
Index Fund .................... 145,758,330 (2,604,251) 143,154,079
Balanced Fund ................. 8,172,578 (1,100,643) 7,071,935
International Fund ............ 28,041,094 (44,419,346) (16,378,252)
Emerging Markets Fund ......... 312,813 (7,309,059) (6,996,246)
At December 31, 1997, the Short/Intermediate Fund and the International
Fund had available capital loss carryforwards of approximately $2,204,671 and
$2,249,736, respectively, that may be used to offset future net capital gains
through 2004 and 2005.
7. NET ASSETS
At June 30, 1998, 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 ........................ $ 382,464 $ 1,840,040 $ 882,201
Paid-in Capital ................................... 382,081,978 1,838,200,266 881,318,903
Undistributed Net Investment Income ............... -- -- --
Amortized Market Discount ......................... -- -- 11,570
Accumulated Net Realized Gain/(Loss) .............. (72) (4,581) 2,098
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions .............. -- -- --
------------ -------------- ------------
Net Assets ........................................ $382,464,370 $1,840,035,725 $882,214,772
============ ============== ============
</TABLE>
91
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHORT/ INTERMEDIATE
INTERMEDIATE GOVERNMENT
FUND BOND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value ....................................... $ 31,605 $ 16,842 $ 6,366
Paid-in Capital .................................... 322,858,327 169,396,179 103,671,808
Undistributed Net Investment Income ................ -- -- --
Accumulated Net Realized Gain/(Loss) ............... (1,384,183) 1,315,850 150,612
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ............... 2,070,388 2,091,805 1,410,939
------------ ------------ ------------
Net Assets ......................................... $323,576,137 $172,820,676 $105,239,725
============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE CONVERTIBLE
TAX-EXEMPT TAX-EXEMPT SECURITIES EQUITY
FUND FUND FUND FUND
------------ ---------- ----------- -----------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value ....................................... $ 18,770 $ 16,643 $ 1,862 $ 49,249
Paid-in Capital .................................... 195,158,967 164,981,704 44,786,925 614,448,887
Undistributed Net Investment Income ................ -- -- 64,600 100,375
Accumulated Net Realized Gain/(Loss) ............... 2,365,222 2,835,157 3,849,594 117,664,053
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ............... 3,648,418 7,023,547 5,681,067 234,451,563
------------ ------------ ----------- ------------
Net Assets ......................................... $201,191,377 $174,857,051 $54,384,048 $966,714,127
============ ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY SMALL-CAP SMALL-CAP
INCOME GROWTH OPPORTUNITY VALUE
FUND FUND FUND FUND
------------ ---------- ----------- -----------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value ....................................... $ 2,897 $ 5,436 $ 16,750 $ 3,122
Paid-in Capital .................................... 33,907,790 80,024,071 221,171,229 85,006,107
Undistributed Net Investment Income ................ 29,776 14,902 (550,462) 240,790
Accumulated Net Realized Gain/(Loss) ............... 1,408,191 12,699,720 8,249,064 9,124,068
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ............... 18,934,716 49,771,588 88,795,767 17,177,917
----------- ------------ ------------ ------------
Net Assets ......................................... $54,283,370 $142,515,717 $317,682,348 $111,552,004
=========== ============ ============ ============
</TABLE>
92
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1998
<TABLE>
<CAPTION>
EMERGING
INDEX BALANCED INTERNATIONAL MARKETS
FUND FUND FUND FUND
------------ ---------- ------------- -----------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value ........................................ $ 12,491 $ 4,327 $ 13,817 $ 2,716
Paid-in Capital ..................................... 186,328,445 56,365,791 201,865,873 25,305,313
Undistributed Net Investment Income ................. 31,451 41,225 1,752,823 90,135
Accumulated Net Realized Gain/(Loss) ................ 13,660,951 4,630,968 4,530,782 (647,788)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ................ 143,154,079 7,071,935 (16,378,252) (6,996,246)
------------ ----------- ------------ -----------
Net Assets .......................................... $343,187,417 $68,114,246 $191,785,043 $17,754,130
============ =========== ============ ===========
</TABLE>
8. 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.
Each of the International Fund and the Emerging Markets 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.
9. OTHER RELATED PARTY TRANSACTIONS
During 1997, an affiliate of the Adviser purchased a security from the
Money Market Fund at an amount $1,470,000 in excess of the security's fair
value. The Money Market Fund recorded a realized loss on the sale and an
offsetting capital contribution from the affiliate.
93
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<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
INVESTMENT SUB-ADVISER
Hansberger Global Investors, Inc.
515 East Las Olas Boulevard, Suite 1300
Fort Lauderdale, Florida 33301
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
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 investment management and consulting); and
Director, Nonlinear Dynamics, Inc. and Evanston Northwestern Healthcare.
EDGAR R. FIEDLER
Senior Fellow and Economic Counsellor, The Conference Board; and Board Member,
The Stanley Works, Scudder Institutional Funds, AARP Income Trust, Brazil Fund,
Emerging Mexico Fund, Scudder Pathway Series, and PEG Capital Management.
JOHN W. MCCARTER, JR.
President and Chief Executive Officer, The Field Museum of Natural History
(Chicago); Board Member, LaSalle Partners Funds, Inc.; Former Senior Vice
President and Director, Booz-Allen & Hamilton, Inc. (consulting firm); and Board
Member, W.W. Grainger,Inc., A.M. Castle, Inc., and Pittway Corp.
ERNEST M. ROTH
Consultant; Board Member, La Rabida Children's Hospital; Chairman, La Rabida
Children's Foundation; and Retired Senior Vice President and Chief Financial
Officer, Commonwealth Edison Company.
PAULA M. WOLFF
President, Governors State University; Chair, University of Chicago Hospitals;
and Board Member, Ariel Capital Management.
OFFICERS
GEORGE A.RIO
President, Treasurer and
Chief Financial Officer
CHRISTOPHER J. KELLEY
Vice President and Secretary
MARY A. NELSON
Assistant Treasurer
THOMAS J. RYAN
Assistant Treasurer
JOSEPH T. GRAMLICH
Assistant Secretary
KAREN JACOPPO-WOOD
Assistant Secretary
ANDREA M. PASSARELLA
Assistant Secretary
KATHLEEN T.TUCKER
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.
INVESTMENT ADVISER:
Harris Trust and Savings Bank
PORTFOLIO MANAGEMENT AGENT:
Harris Investment Management, Inc.
DISTRIBUTOR:
Funds Distributor, Inc.
HIF 1251 8/98
