Harris
Insight(REGISTRATION MARK) Funds
SEMI-ANNUAL REPORT
JUNE 30, 1999
[GRAPHIC OMITTED]
HARRIS INSIGHT(REGISTRATION MARK) FUNDS
POWERFUL INSIGHT. SOLID INVESTMENTS.(REGISTRATION MARK)
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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
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LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER:
We are pleased to report to you the results for the Harris Insight Funds for the
six-month period ended June 30, 1999.
Within this Semi-Annual Report you will find Harris Investment Management's
review of the equity and fixed-income markets during the first half of the year,
as well as their outlook for the markets and the economy for the balance of
1999.
HARRIS INSIGHT FUNDS PERFORM
Following the fourth consecutive year of double-digit returns in the stock
market, the Dow Jones Industrial Average reached the 11,000 milestone in early
May and finished up the 6-month reporting period again with strong returns. The
longest bull market in history helped propel the Harris Insight Equity Funds to
post positive returns in nine of our ten equity funds.
1998's "nifty-fifty" growth stock market broadened to include value-style
companies in the first half of this year. This favored several of the Harris
Insight Equity Funds, whose focus and discipline aligns them with the more
conservative style of value investing. Harris Investment Management's equity
investment philosophy focuses on consistency and levels of relative performance
by combining the best elements of value and growth investing, setting us apart
in today's current equity market environment where high valuations and
volatility seem to be the order of the day.
Of particular note was the torrid pace of the markets abroad as investors
increasingly acknowledged the favorable combination of growth and value
characteristics in the improving global economy. The Harris Insight
International Fund and Harris Insight Emerging Markets Fund took advantage of
this opportunity and posted significant relative returns in their Lipper
categories. (FOR MORE DETAILED PERFORMANCE INFORMATION, PLEASE SEE THE
INDIVIDUAL FUND PAGES OF THIS REPORT OR CALL 800-982-8782.)
The Harris Insight Fixed Income Funds, in turn, faced a more challenging
investment environment as the bond market saw an increase in rates to levels not
seen in over 18 months. However, Harris Investment Management's highly
disciplined, quantitatively-based fixed income investment process enabled them
to react quickly to the market and earn competitive relative returns.
1
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LETTER TO SHAREHOLDERS
(CONTINUED)
CONTINUED GROWTH AT HARRIS INSIGHT FUNDS
As mentioned in prior reports, increasing distribution of the Harris Insight
Funds has been a priority for us. Increasing fund assets provides a larger base
over which to spread certain expenses associated with operating mutual funds,
thereby directly benefiting shareholders.
To that end, we are pleased to announce a new load class of shares, which has
been created primarily to help increase sales of our Funds through financial
intermediaries. Together with the COLLEGE IN-SIGHT SM Program, which enables
Fund shareholders to help meet the rising costs of college education by earning
tuition reduction rewards at over 100 participating private colleges and
universities, we believe the Harris Insight Funds are well positioned to attract
investors.
As we move forward, we remain committed to serving you. We have expanded our
call center (800-982-8782) and continue to revise our Web site to help meet your
investment needs. Please visit our Web site at WWW.HARRISINSIGHT.COM to access
more information on Harris Insight Funds' products and services.
We always 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/PHILIP H. RINNANDER
Philip H. Rinnander
President
THE HARRIS INSIGHT FAMILY OF MUTUAL FUNDS
INVESTMENT ADVISER: HARRIS TRUST AND SAVINGS BANK
PORTFOLIO MANAGEMENT AGENT: HARRIS INVESTMENT MANAGEMENT, INC.
DISTRIBUTOR: PROVIDENT DISTRIBUTORS, INC.
2
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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
STATEMENTS OF NET
ASSETS/SCHEDULES OF INVESTMENTS
MONEY MARKET FUNDS:
Government Money Market Fund Page 8
Money Market Fund Page 9
Tax-Exempt Money Market Fund Page 11
FIXED INCOME FUNDS:
Short/Intermediate Bond Fund Page 15
Bond Fund Page 20
Intermediate Government Bond Fund Page 25
Intermediate Tax-Exempt Bond Fund Page 27
Tax-Exempt Bond Fund Page 30
Convertible Securities Fund Page 33
EQUITY FUNDS:
Equity Fund Page 37
Equity Income Fund Page 40
Growth Fund Page 43
Small-Cap Opportunity Fund Page 46
Small-Cap Value Fund Page 50
Index Fund Page 53
Balanced Fund Page 60
International Fund Page 66
Emerging Markets Fund Page 69
STATEMENTS OF OPERATIONS PAGE 72
STATEMENTS OF CHANGES IN NET ASSETS PAGE 74
STATEMENTS OF CHANGES-- CAPITAL STOCK ACTIVITY PAGE 78
FINANCIAL HIGHLIGHTS PAGE 84
NOTES TO FINANCIAL STATEMENTS PAGE 94
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THE MARKET ENVIRONMENT
ECONOMIC REVIEW
JUNE 30, 1999
How quickly things change! Last year at this time Asia was in a steep recession,
and Eastern Europe and Latin America were slowing rapidly. For the most part,
Western Europe and the U.S. were both enjoying sound economic growth. At
mid-year 1999, Asia is beginning to recover and Latin America (primarily Brazil)
appears to have halted its slide. Western Europe's growth has slowed somewhat
with Germany's economy exhibiting the greatest strain among the larger economies
in the region. Only the U.S. has escaped relatively unscathed.
As we look forward, it is with some apprehension. This economic cycle has lasted
longer than any previous cycle, the Federal Reserve has just raised interest
rates (and could raise them further), the stock market is at a record high level
and investors are very optimistic. On the other hand, the U.S. economy continues
to perform well.
THE ECONOMIC OUTLOOK REMAINS GOOD WITH LOW INFLATION
The economy continues to grow at a moderate nominal rate but a robust real rate.
The reason is that inflation has continued to be well contained, despite low
unemployment. Surprisingly, despite low unemployment, there has been little
evidence of accelerating wage pressures. The flip side, however, is that a large
majority of companies continue to reflect little, if any, pricing power.
This latter situation is undoubtedly the result of difficult economic conditions
being experienced in Asia, Eastern Europe and Latin America. As these regional
economies have slowed, they have increased exports dramatically in an attempt to
accumulate hard currency. This has put downward pressure on U.S. manufactured
product prices and, until recently, corporate profit margins. The good news is
that consumers have benefited greatly from this state of affairs. Another
benefit is that U.S. corporations have been forced to become more productive.
Their success in this regard will be beneficial to corporate earnings in future
years and should act to cushion any economic slowdown we might experience in the
near-term.
The conclusion is that the outlook for both inflation and U.S. economic growth
continues to be good for the remainder of 1999.
WHY DID THE FED RAISE RATES?
At its June 28th meeting the Federal Reserve raised the Fed Funds rate by 25
basis points (1/4%). While this move was widely expected by the financial
markets, it was, nonetheless, surprising due to the absence of any evidence of
inflationary pressures. Some observers believe the Fed has become concerned that
low U.S. unemployment could result in rising pressures if the economic expansion
continues. It is more likely that the Fed is beginning to drain the reserves it
injected into the banking system last year when the Asian currency crisis
occurred.
The question to be answered now is whether the Fed will raise interest rates
further. Our conclusion is that it will not, as indicated both by its shift to a
"neutral tightening bias" and also the absence of any signs of accelerating
inflation. That said, if inflation picks up, the Fed would probably act quickly
to calm the financial market's fears. It is this latter concern that has caused
bond yields to rise in recent months. On the other hand, if inflation continues
to be kept in check, bond yields could eventually move lower.
4
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THE MARKET ENVIRONMENT
ECONOMIC REVIEW
JUNE 30, 1999 (CONTINUED)
MIXED SIGNALS IN THE FINANCIAL MARKETS
Stock market valuations are high, bond yields have been rising and investors are
optimistic. Is the outlook bleak or benign? As always, there is a mix of
information that can be interpreted both positively and negatively.
Of greatest concern is whether or not the outlook for earnings growth remains
positive. At this writing Wall Street analysts' earnings estimates are rising.
Further, the economic outlook appears favorable. Finally, there appears to be a
concerted effort underway in Washington to reduce taxes. All of these things
appear to argue for a continued rise in stock prices.
However, stock market valuations remain high after several years of rising
prices. Further, there are developing signs of excessive investor speculation.
With individuals now representing the dominant investor class, new entrants into
the investment arena are increasingly less well capitalized and appear more
short-term oriented. If stock prices ever do experience a correction, it is not
clear how these investors will react.
At the moment, these concerns seem unnecessary, as the economic outlook remains
good. However, extraneous events can change the outlook quickly. While the
fundamentals currently appear positive, we should guard against throwing caution
to the wind. In recent years investors have enjoyed a spectacular and nearly
uninterrupted rise in the financial markets. While the immediate future
continues to look good, the level of the stock market implies it could be much
more vulnerable to any bad news, should it unexpectedly occur.
DAVID L. MEAD
Vice President and Chief Investment Officer
Harris Trust and Savings Bank
5
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THE MARKET ENVIRONMENT
FIXED INCOME MARKETS REVIEW
JUNE 30, 1999
Things are always so clear after the fact. A short nine months ago long U.S.
Treasury rates hit a low of 4.75%. By the end of this six-month reporting period
rates had risen to nearly 6%. Economic activity in the United States was growing
at roughly the same pace during both periods. What has changed? Clearly, the
change has come from overseas. Asian economies have rebounded sharply from last
fall's crisis. Europe shows signs of accelerating growth. South America has
refused, so far, to collapse. As the risk of defaults around the globe recedes,
investors, both domestic and abroad, have shifted monies out of the safe haven
of U.S. Treasuries and into assets providing higher returns. The corresponding
rise in Treasury rates can be viewed as simply a return to more "normal" levels
given the current pace of our economy.
This has been a welcome turn of events for the fixed income market and
particularly the taxable Harris Insight Fixed Income Funds. Our Intermediate
Government Bond, Short/Intermediate Bond Fund and Bond Fund all employ a
strategy that underweights U.S. Treasury issues in search of higher-yielding
securities. Our strategy focuses on long-term results based on extensive
research that has shown that the primary determinant of higher returns over time
is yield. Therefore, our strategy, which has endured a difficult environment
over the last six months, now seems poised to take full advantage of favorable
market conditions going forward.
The difficult environment also carried over to the municipal market where the
six-month reporting period saw a supply/demand imbalance that rewarded
higher-quality, highly liquid issues and punished more speculative issues. The
Tax-Exempt Bond Fund and the Intermediate Tax-Exempt Bond Fund benefited as
their general investment philosophy aligned with the market's focus on quality.
Their strategy of buying into oversupply and selling when supply abates, while
emphasizing higher quality issues, was rewarded. We continue to employ this
disciplined investment process and believe these Funds are well positioned going
forward.
The direction the bond market takes from here should depend upon the next few
releases of statistical data for domestic growth and prices. Thus far,
above-trend growth has not caused inflation to rise. However, most market
participants believe that tangible signs of a slowdown may be needed before the
Fed's August meeting to prevent a second hike in rates. Indicators such as
durable goods orders, the National Purchasing Managers' Survey, and the July
employment report become especially important in this environment.
MARK E. NEWLIN, C.F.A.
Director of Fixed Income Management
Harris Investment Management, Inc.
6
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THE MARKET ENVIRONMENT
EQUITY MARKETS REVIEW
JUNE 30, 1999
The market switched from its long-standing focus on mega-cap, high-P/E, growth
stocks to more cyclical value stocks and small-cap issues. The market's movement
to more value-oriented issues and smaller companies was driven by an increasing
belief that corporate profit growth would significantly broaden from the largest
25-50 companies and that, despite the prospect of higher short-term interest
rates, the U.S. economy would continue to grow.
Despite the broadening of the market, several of our domestic Equity Funds
experienced a challenging investment environment. The Funds clearly practice a
disciplined, value investment approach but utilize a combination of both value
and growth investment processes and techniques. The six-month period saw a rapid
style rotation that benefited "nifty-fifty" growth stocks in the first quarter
and cyclical, value stocks in the second quarter, leaving more moderately
positioned funds to underperform. Our proven investment process focuses on
long-term results, however, and we feel confident that our Funds are well
positioned to take advantage of market momentum going forward.
On the international front, markets rebounded sharply from last fall's global
financial crisis as the world's economies registered stronger than expected
growth. The International Fund and Emerging Markets Fund took advantage of this
rebound and posted significantly strong relative returns.
Our long standing optimism on corporate profits is becoming consensus as Wall
Street strategists are now forecasting profit gains of 10-15% for 1999 and
becoming more optimistic regarding Y2K issues, in line with our forecast. We
continue to believe that the economic backdrop for equity investors is near
perfect.
The U.S. financial environment continues to provide a budget surplus, nominal
inflation and good profit growth. Given the current environment, in which price
increases are precluded, companies have focused on raising profitability through
increased unit sales VIA cost cutting and the innovative use of technology.
Historically, swings in profitability have been driven by recessions, which in
turn have been caused primarily by swings in inventory. Today, with the
increased usage of technology and the growth in the service economy, inventories
have a significantly less impact on profitability. These two conditions will
probably moderate the economic cycles we have historically experienced.
Although the fundamental issues of corporate profits and good economic growth
are very positive, the other principal component of the market outlook is
disconcerting. Valuations of the broad market continue at very lofty levels. The
very positive backdrop is reflected in stock prices. As we have for some time,
we find the large-cap value segment of the market attractive, along with smaller
companies and foreign issues.
WILLIAM O. LESZINSKE
President and Chief Investment Officer
Harris Investment Management, Inc.
7
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HARRIS INSIGHT FUNDS
GOVERNMENT MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
AGENCY OBLIGATIONS -- 25.6%
FEDERAL HOME LOAN BANK -- 19.1%
4.915% 01/13/00 $10,000 $ 10,000,775
4.860% 01/14/00 12,190 12,184,256
4.950% 02/17/00 30,000 29,990,827
5.035% 02/25/00 14,000 13,997,237
5.075% 04/28/00 10,000 9,999,421
5.415% 06/14/00 10,000 9,998,807
------------
86,171,323
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 6.5%
5.820% 08/25/99 4,575 4,576,475
4.970% 04/12/00 10,000 9,994,746
5.050% 05/12/00 15,000 14,986,285
------------
29,557,506
------------
TOTAL AGENCY OBLIGATIONS
(Cost $115,728,829) 115,728,829
------------
VARIABLE RATE OBLIGATIONS (DOUBLE DAGGER) -- 53.0%
FEDERAL FARM CREDIT BANK -- 3.3%
4.818% 07/15/99* 15,000 14,994,337
------------
FEDERAL HOME LOAN BANK -- 19.9%
4.910% 07/01/99* 30,000 29,993,021
4.955% 07/01/99* 30,000 29,988,197
4.770% 07/08/99* 10,000 9,999,055
4.775% 08/12/99* 10,000 9,992,661
4.851% 09/01/99* 10,000 9,996,915
------------
89,969,849
------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 6.6%
4.825% 07/19/99* 20,000 19,985,923
4.824% 07/20/99* 10,000 9,994,267
------------
29,980,190
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 12.1%
5.173% 07/06/99* 4,500 4,498,703
4.800% 07/15/99* 10,000 9,995,982
4.925% 07/28/99 20,000 19,998,757
4.790% 08/10/99* 10,000 9,994,852
4.974% 09/23/99* 10,000 9,995,276
------------
54,483,570
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STUDENT LOAN MARKETING ASSOCIATION -- 11.1%
4.860% 07/01/99* 20,000 19,996,722
4.940% 07/01/99* 20,000 19,996,881
4.768% 07/06/99* 10,000 9,997,240
------------
49,990,843
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $239,418,789) 239,418,789
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
REPURCHASE AGREEMENTS -- 21.1%
Lehman Brothers, Inc.
4.950% Agreement dated 06/30/99,
proceeds at maturity
$65,228,425 (Collateralized
by $65,926,442 FHLMC and
FNMA 6.000% to 10.500%,
due from 05/01/03 to 04/01/27.
The market value is
$66,519,045.) 07/01/99 $65,219 $65,219,457
Donaldson, Lufkin & Jenrette
Securities Corp.
4.840%
Agreement dated 06/04/99,
proceeds at maturity
$30,129,067 (Collateralized
by $30,415,403 FHLMC and
FNMA 5.740% to 7.263%,
due from 10/01/10 to 11/01/37.
The market value is
$30,602,377.) 07/06/99 30,000 30,000,000
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TOTAL REPURCHASE AGREEMENTS
(Cost $95,219,457) 95,219,457
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SHARES
--------
TEMPORARY INVESTMENTS -- 0.0%
AIM Short-Term Investment Trust
Treasury Portfolio 16,251 16,251
Provident Institutional Funds T-Fund 7,223 7,223
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $23,474) 23,474
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TOTAL INVESTMENTS -- 99.7%
(Cost $450,390,549) 450,390,549
------------
OTHER ASSETS AND LIABILITIES -- 0.3%
Interest receivable and other assets 3,077,386
Dividends payable (1,716,096)
Accrued expenses (214,211)
------------
1,147,079
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NET ASSETS -- 100.0%
Applicable to 189,245,317 Institutional
Shares and 262,404,594 N Shares
outstanding, $.001 par value;
1.5 billion authorized shares
(Note 7) $451,537,628
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
EACH FOR INSTITUTIONAL SHARES
AND N SHARES $1.00
=====
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(DAGGER) See Note 2a to the Financial Statements.
(DOUBLE DAGGER) Rate in effect on 06/30/99.
* Date of next interest rate reset.
See Notes to Financial Statements
8
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HARRIS INSIGHT FUNDS
MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- --------------
ASSET-BACKED SECURITIES -- 7.7%
Bishops Gate Residential
Mortgage Trust Series 1998-2A,
Class A1
5.130% 07/01/99 $15,000 $ 15,000,000
Contimortgage Home Equity
Loan Trust Series 1998-3,
Class A1
5.512% 09/15/99 912 911,832
CORE Series 1999-1A, Class A1B
5.150% 09/17/99 34,005 34,005,193
Franklin Auto Loan Funding, LLC
Series 1999-1, Class A1
4.990% 07/19/99 26,060 26,058,812
Ikon Receivables LLC
Series 1999-1, Class A1
5.110% 07/15/99 65,477 65,477,184
Union Acceptance Corp.
Series 1998-D, Class A1
5.363% 07/08/99 1,584 1,583,522
World Financial Properties
5.150% 07/08/99 31,608 31,607,601
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TOTAL ASSET-BACKED SECURITIES
(Cost $174,644,144) 174,644,144
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CERTIFICATES OF DEPOSIT -- 5.7%
Bankers Trust Co.
5.160% 04/10/00 49,000 48,981,647
Societe Generale
5.220% 02/28/00 36,925 36,915,577
Union Bank of California
5.000% 07/15/99 44,000 44,000,000
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TOTAL CERTIFICATES OF DEPOSIT
(Cost $129,897,224) 129,897,224
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COMMERCIAL PAPER -- 0.6%
Virginia Electric Power
(Cost $12,400,000)
5.720% 07/01/99 12,400 12,400,000
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CORPORATE BONDS -- 21.4%
Associates Corp. of North America
6.680% 09/17/99 1,800 1,805,576
6.750% 10/15/99 700 703,132
BankBoston
5.123% 02/17/00 39,225 39,218,542
Beta Finance, Inc.
5.235% 01/18/00 40,000 40,000,000
5.150% 02/24/00 36,500 36,500,000
5.160% 04/17/00 24,000 23,998,102
Ford Motor Credit Corp.
8.720% 07/22/99 3,560 3,566,069
7.750% 10/01/99 1,000 1,005,234
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
CORPORATE BONDS (CONTINUED)
General Motors Acceptance Corp.
7.375% 09/09/99 $ 2,000 $ 2,006,202
8.000% 10/01/99 12,292 12,377,880
6.050% 10/04/99 2,500 2,505,151
5.750% 01/05/00 3,500 3,510,680
8.625% 01/10/00 9,600 9,771,590
9.375% 04/01/00 7,346 7,567,170
Heller Financial, Inc.
6.140% 04/13/00 4,750 4,778,694
6.500% 05/15/00 17,790 17,934,314
Household Finance Corp.
8.950% 09/15/99 2,981 3,003,540
5.678% 07/07/00 70,500 70,474,788
International Business Machines Corp.
6.375% 06/15/00 16,137 16,243,237
International Lease Finance Corp.
6.650% 04/01/00 2,500 2,520,188
Lehman Brothers Holdings, Inc.
6.300% 08/11/99 9,000 9,005,046
8.875% 02/15/00 10,000 10,196,970
6.150% 03/15/00 11,615 11,661,686
Liberty Lighthouse US Capital Co.
5.750% 08/09/99 40,000 40,000,000
PHH Corp.
5.510% 02/22/00 11,500 11,500,000
5.610% 02/22/00 35,000 35,000,000
5.490% 03/01/00 60,000 59,976,845
Salomon Smith Barney Holdings, Inc.
6.500% 03/01/00 8,200 8,273,095
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TOTAL CORPORATE BONDS
(Cost $485,103,731) 485,103,731
-------------
VARIABLE RATE OBLIGATIONS (DOUBLE DAGGER) -- 56.3%
Caterpillar Financial Service Corp.
4.930% 07/07/99* 70,000 69,999,438
CIT Group Holdings, Inc.
4.940% 07/01/99* 78,200 78,165,341
Countrywide Home Loans, Inc.
5.125% 07/14/99* 25,000 24,998,269
5.250% 07/15/99* 30,000 30,000,000
4.998% 07/26/99 25,000 25,000,000
First Union National Bank
4.970% 07/19/99* 39,200 39,202,380
General American Insurance Co.
5.120% 07/01/99* 80,000 80,000,000
General Motors Acceptance Corp.
4.975% 08/03/99* 19,000 19,002,667
Goldman Sachs Group
5.200% 07/07/99* 5,000 5,000,000
5.000% 07/15/99* 49,000 49,000,000
Heller Financial, Inc.
5.290% 07/13/99* 25,000 25,052,589
5.271% 09/01/99* 20,000 20,029,020
5.324% 09/20/99* 30,000 30,031,931
See Notes to Financial Statements
9
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HARRIS INSIGHT FUNDS
MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
VARIABLE RATE OBLIGATIONS (DOUBLE DAGGER) (CONTINUED)
John Deere Capital Corp.
4.884% 07/01/99* $41,000 $ 40,974,181
John Hancock Mutual Life Insurance Co.
5.120% 07/15/99* 80,000 80,000,000
Lehman Brothers Holdings, Inc.
5.270 07/19/99* 65,000 65,000,000
5.590% 07/27/99* 3,000 3,002,136
Liberty Lighthouse US Capital Co.
4.960% 07/15/99 40,000 40,000,000
Madison, Wisconsin, Community
Development Authority Revenue Bonds
5.150% 07/07/99* 8,615 8,615,000
Metlife Funding Agreement
4.975% 07/01/99* 50,000 50,000,000
Morgan Stanley Dean Witter & Co.
5.426% 09/01/99* 14,000 14,037,741
NationsBank of North America
4.910% 07/01/99* 40,800 40,787,743
Northern Rock P.L.C.
5.115% 09/14/99* 33,700 33,700,000
Pennsylvania Economic Development
Finance Authority Revenue Bonds
5.150% 07/01/99* 6,000 6,000,000
PNC Bank Corp.
4.814% 07/02/99 30,000 29,999,944
5.120% 07/26/99* 10,650 10,648,842
Rural Electric Cooperative Grantor Trust
(Kansas Electric Power Cooperative)
5.290% 07/07/99* 9,800 9,800,000
Sacramento County, California,
Municipal Bond
5.220% 07/07/99* 66,500 66,500,000
Sigma Finance
4.880% 07/01/99* 75,000 75,000,000
Syndicated Loan Funding Trust
5.150% 07/15/99* 74,000 74,000,000
Transamerica Finance Corp.
5.250% 07/22/99* 14,650 14,650,000
Transamerica Funding Agreement
4.930% 07/01/99* 25,000 25,000,000
5.155% 07/15/99* 65,000 65,000,000
Travelers Funding Agreement
5.168% 07/28/99* 25,000 25,000,000
-------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $1,273,197,222) 1,273,197,222
-------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
REPURCHASE AGREEMENTS -- 2.8%
Donaldson, Lufkin, and Jenrette
Securities Corp.
4.950%
Agreement dated 06/30/99,
proceeds at maturity
$62,224,689 (Collateralized by
$62,133,354 FHLMC and FNMA
5.689% to 9.016%, due from
03/01/08 to 04/01/29. The
market value is $63,463,217.)
(Cost $62,216,134) 07/01/99 $62,216 $ 62,216,134
-------------
SHARES
--------
TEMPORARY INVESTMENTS -- 1.9%
Dreyfus Cash Management Plus, Inc.
Class A Shares 43,917,239 43,917,239
Goldman Sachs Financial Square
Money Market Portfolio 374 374
J.P. Morgan Institutional Prime
Money Market Portfolio 904 904
Lehman Prime Money Market Fund
Class A Shares 3 3
-------------
TOTAL TEMPORARY INVESTMENTS
(Cost $43,918,520) 43,918,520
-------------
TOTAL INVESTMENTS -- 96.4%
(Cost $2,181,376,975) 2,181,376,975
-------------
OTHER ASSETS AND LIABILITIES -- 3.6%
Interest receivable and other assets 18,870,224
Receivable for securities sold 71,777,889
Dividends payable (9,186,462)
Accrued expenses (750,438)
-------------
80,711,213
-------------
NET ASSETS -- 100.0%
Applicable to 1,332,288,757 Institutional
Shares and 929,816,363 N Shares
outstanding, $.001 par value;
3.55 billion authorized shares
(Note 7) $2,262,088,188
==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
EACH FOR INSTITUTIONAL SHARES
AND N SHARES $1.00
=====
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
(DOUBLE DAGGER) Rate in effect on 06/30/99.
* 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, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS -- 105.3%
ALABAMA -- 0.9%
Fairfield, Alabama, Industrial Development
Board Environmental Improvement
Revenue Bonds (USX Corp. Project) PS
3.100% 11/04/99 $ 6,175 $ 6,175,000
-------------
ALASKA -- 5.4%
Alaska State Housing Financial Corp.
Governmental Purpose Revenue Bonds
(University of Alaska) Series A VR
3.550% 07/07/99 10,160 10,160,000
Anchorage, Alaska, Electric Utility
Revenue Bonds Series 1996D VR
3.550% 07/07/99 7,800 7,800,000
Valdez, Alaska, Marine Terminal Revenue
Bonds (Arco Transportation Project)
Series C TECP
3.450% 08/11/99 7,400 7,400,000
3.200% 08/12/99 2,600 2,600,000
3.450% 08/16/99 10,000 10,000,000
-------------
37,960,000
-------------
ARIZONA -- 1.9%
Apache County, Arizona, Industrial
Development Authority Revenue Bonds
(Tucson Electric Power Co.)
Series 1983C VR
3.450% 07/07/99 10,550 10,550,000
Maricopa County, Arizona, Pollution
Control Corp. Revenue Refunding Bonds
(Arizona Public Service Co.) Series B VR
3.400% 07/01/99 3,000 3,000,000
-------------
13,550,000
-------------
CALIFORNIA -- 2.9%
California Statewide Community
Development Authority Revenue Bonds
Series A23-Reg D PS
3.350% 09/30/99 4,400 4,400,000
Los Angeles County, California, TRANS
4.000% 06/30/00 5,000 5,032,800
Riverside County, California, School
Financing Authority Series A30-Reg D VR
3.450% 07/07/99 4,000 4,000,000
San Diego County, California, Area Local
Government Certificates of Participation
Series A25-Reg D VR
3.350% 07/07/99 7,250 7,250,000
-------------
20,682,800
-------------
CONNECTICUT -- 0.6%
Connecticut State Special Assessment
Unemployment Compensation Advance
Fund Revenue Bonds (Connecticut
Unemployment Project) Series 1993C PS
3.600% 07/01/00 3,800 3,800,000
-------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
FLORIDA -- 6.6%
Dade County, Florida, Industrial
Development Authority Exempt
Facilities Revenue Refunding Bonds
(Florida Power & Light Co.) VR
3.400% 07/01/99 $10,000 $ 10,000,000
Putnam County, Florida, Development
Authority Pollution Control Revenue
Bonds (Seminole Electric) VR
3.550% 07/07/99 3,565 3,565,000
Sunshine State GFC TECP
3.050% 07/28/99 3,000 3,000,000
3.150% 07/28/99 5,000 5,000,000
3.100% 08/12/99 5,000 5,000,000
3.300% 09/14/99 6,000 6,000,000
3.200% 10/13/99 14,030 14,030,000
-------------
46,595,000
-------------
GEORGIA -- 2.3%
Georgia Municipal Electric Authority
(Project One) Series A TECP
3.350% 08/06/99 10,000 10,000,000
Georgia State General Obligation Bonds
Series B
5.750% 07/01/99 3,500 3,500,000
Monroe County, Georgia, Development
Authority Pollution Control Revenue
Bonds (Georgia Power Co.) 2nd Series VR
3.500% 07/01/99 2,600 2,600,000
-------------
16,100,000
-------------
HAWAII -- 2.2%
City & County of Honolulu, Hawaii, TECP
3.150% 07/08/99 14,100 14,100,000
3.550% 07/08/99 1,300 1,300,000
-------------
15,400,000
-------------
IDAHO -- 1.4%
Idaho State TANS
4.250% 06/30/00 10,000 10,081,900
-------------
ILLINOIS -- 10.8%
Chicago, Illinois, Park District TANS
4.300% 09/17/99 2,500 2,503,854
Cook County, Illinois, Revenue Bonds
(Catholic Charities) VR
3.550% 07/07/99 8,300 8,300,000
Illinois Development Finance Authority
Revenue Bonds (McCormick Theological)
Series A VR
3.550% 07/01/99 3,780 3,785,000
Illinois Development Finance Authority
Revenue Bonds (Presbyterian Home
Lake) Series A VR
3.550% 07/07/99 23,000 23,000,000
See Notes to Financial Statements
11
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS (CONTINUED)
Illinois Development Finance Authority
Revenue Bonds (Provena Health Project)
Series B VR
3.450% 07/01/99 $13,000 $ 13,000,000
Illinois Development Finance Authority
Revenue Bonds (Roosevelt University
Project) VR
3.550% 07/07/99 6,500 6,500,000
Kane, McHenry, Cook & De Kalb Counties,
Illinois, United School District No. 300
TANS
3.850% 09/30/99 19,000 19,020,748
-------------
76,109,602
-------------
INDIANA -- 9.0%
ABN AMRO Munitops Certificates
Series 5 VR
3.660% 07/07/99 20,746 20,746,000
Indiana Health Facilities Finance Authority
Hospital Revenue Bonds (Charity Group)
Series 1997F VR
3.350% 07/07/99 7,800 7,800,000
Indiana State Office Building Notes
Series A TECP
3.100% 09/27/99 15,100 15,100,000
Indiana University Revenue Bonds
(Student Fee Project) Series K
5.500% 08/01/99 2,745 2,749,237
Rockport, Indiana, Pollution Control
Revenue Bonds (Indiana & Michigan
Power Co.) Series A VR
3.550% 07/07/99 3,845 3,845,000
Rockport, Indiana, Pollution Control
Revenue Bonds (Indiana & Michigan
Power Co. Project) Series B VR
3.450% 07/07/99 13,000 13,000,000
-------------
63,240,237
-------------
IOWA -- 1.2%
Iowa State School Cash Anticipation
Program, Iowa School Corps Warrants
Certificates Series B
3.500% 01/28/00 5,000 5,014,857
Polk County, Iowa, Hospital Equipment
Authority Revenue Bonds VR
3.500% 07/07/99 3,080 3,080,000
-------------
8,094,857
-------------
KANSAS -- 1.8%
Burlington, Kansas, Environmental
Improvement Revenue Bonds (Kansas
City Power & Light) Series B VR
3.600% 07/07/99 12,900 12,900,000
-------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
KENTUCKY -- 2.8%
Kentucky Asset Liability Community
Revenue TRANS
4.250% 06/28/00 $10,000 $ 10,083,900
Mason County, Kentucky, Pollution Control
Revenue Bonds (East Kentucky Power
Co-Op) Series B-2 VR
3.550% 07/07/99 5,000 5,000,000
Mason County, Kentucky, Pollution Control
Revenue Bonds (East Kentucky Power
Co-Op) Series B-3 VR
3.550% 07/07/99 4,815 4,815,000
-------------
19,898,900
-------------
LOUISIANA -- 5.8%
Jefferson Parish, Louisiana, Hospital
Service District No. 2 Revenue Bonds
(East Jefferson General Hospital) VR
3.500% 07/07/99 11,900 11,900,000
Lake Charles Parish, Louisiana, Harbor
Terminal District Port Facilities Revenue
Bonds (E.I. du Pont de Nemours
Project) VR
3.450% 07/01/99 12,100 12,100,000
West Baton Rouge Parish, Louisiana,
Industrial District No. 3 Revenue Bonds
(Dow Chemical Co. Project) Series B VR
3.500% 07/01/99 17,100 17,100,000
-------------
41,100,000
-------------
MARYLAND -- 0.7%
Baltimore County, Maryland, Metropolitan
District TECP
2.800% 07/27/99 5,000 5,000,000
-------------
MICHIGAN -- 1.3%
Michigan State Hospital Finance Authority
Revenue Bonds Series 1997F VR
3.350% 07/07/99 3,000 3,000,000
Michigan State Strategic Fund Pollution
Control Revenue Refunding Bonds
(Consumers Power Project) VR
3.400% 07/01/99 6,000 6,000,000
-------------
9,000,000
-------------
MINNESOTA -- 3.2%
Rochester, Minnesota, Health Care Facilities
Revenue Bonds (Mayo Foundation/Mayo
Medical Center) Series C TECP
3.100% 08/17/99 6,750 6,750,000
University of Minnesota Revenue Bonds
Series A VR
3.500% 07/07/99 15,650 15,650,000
-------------
22,400,000
-------------
See Notes to Financial Statements
12
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
MISSOURI -- 3.0%
Missouri State Health & Educational
Facilities Authority Revenue Bonds
(Washington University) Series A VR
3.450% 07/01/99 $ 5,600 $ 5,600,000
Missouri State Health & Educational
Facilities Authority Revenue Bonds
(Washington University) Series B VR
3.450% 07/01/99 5,800 5,800,000
St. Louis County, Missouri, Industrial
Development Authority Hospital Revenue
Bonds (Charity Obligation Group)
Series E VR
3.350% 07/07/99 9,700 9,700,000
-------------
21,100,000
-------------
NEBRASKA -- 4.1%
Nebraska Public Power District Electric
System Revenue Bonds Series A TECP
2.850% 08/24/99 17,975 17,975,000
3.450% 08/26/99 10,000 10,000,000
Omaha, Nebraska, General Obligation Bonds
5.125% 12/01/99 1,070 1,079,050
-------------
29,054,050
-------------
NEW MEXICO -- 0.1%
Albuquerque, New Mexico, General
Obligation Bonds Series A
3.750% 07/01/00 1,000 1,001,937
-------------
NEW YORK -- 0.4%
Long Island Power Authority, New York
Electric Systems Revenue Bonds
Subseries 5 VR
3.400% 07/01/99 3,000 3,000,000
-------------
OKLAHOMA -- 5.0%
Muskogee, Oklahoma, Industrial Trust
Pollution Control Revenue Bonds
(Oklahoma Gas & Electric Co.)
Series A VR
3.550% 07/07/99 16,500 16,500,000
Oklahoma City, Oklahoma, Industrial &
Cultural Trust Revenue Bonds
(SSM Health Care) TECP
3.100% 07/19/99 8,000 8,000,000
3.100% 08/17/99 5,440 5,440,000
Tulsa, Oklahoma, Industrial Authority
Revenue Bonds (University of Tulsa)
Series B VR
3.500% 07/07/99 5,550 5,550,000
-------------
35,490,000
-------------
OREGON -- 1.0%
Portland, Oregon, BANS Series A
3.750% 12/15/99 6,985 7,002,211
-------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA -- 3.5%
Allegheny County, Pennsylvania, Sanitation
Authority Sewer Revenue Bonds VR
3.500% 07/07/99 $24,600 $ 24,600,000
-------------
SOUTH CAROLINA -- 2.9%
South Carolina Public Service Authority
Revenue Bonds TECP
3.250% 09/16/99 6,000 6,000,000
York County, South Carolina, Pollution
Control Revenue Bonds PS
3.000% 09/15/99 14,500 14,500,000
-------------
20,500,000
-------------
TEXAS -- 8.2%
Austin, Texas, Combined Utility Systems
Revenue Bonds Series A TECP
3.050% 07/12/99 10,955 10,955,000
Brazos River Authority, Texas Pollution
Control Revenue Bonds (Monsanto Co.
Project) VR
3.600% 07/07/99 5,730 5,730,000
Denton, Texas, Independent School District
General Obligation Bonds Series B PS
3.650% 08/15/99 11,100 11,100,000
Nueces County, Texas, Health Facilities
Development Corp. Revenue Bonds
(Driscoll Children's Foundation Project) VR
3.550% 07/07/99 7,905 7,905,000
Sabine River, Texas, Industrial Development
Authority Revenue Bonds (National Rural
Utilities Project) PS
3.550% 08/15/99 4,640 4,640,000
San Antonio, Texas, Independent School
District General Obligation Bonds
7.000% 08/15/99 2,000 2,009,730
Texas Small Business Industrial
Development Revenue Bonds VR
3.500% 07/07/99 7,640 7,640,000
3.550% 07/07/99 7,845 7,845,000
-------------
57,824,730
-------------
UTAH -- 0.4%
Emery County, Utah, Pollution Control
Revenue Bonds (Pacificorp Project) VR
3.450% 07/01/99 3,100 3,100,000
-------------
WASHINGTON -- 5.7%
Washington State Health Care Facilities
Authority Revenue Bonds (Fred
Hutchinson Cancer Center) VR
3.600% 07/01/99 30,400 30,400,000
Washington State Public Power Supply
System Nuclear Project No. 3 Refunding
Revenue Bonds Series 3A-1 TECP
3.000% 10/06/99 10,000 10,000,000
-------------
40,400,000
-------------
See Notes to Financial Statements
13
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
WISCONSIN -- 10.2%
Arrowhead, Wisconsin, United High
School TRANS
3.750% 09/27/99 $ 1,400 $ 1,400,323
Belleville, Wisconsin, School District TRANS
3.740% 11/01/99 1,100 1,100,499
Green Lake, Wisconsin, School District
TRANS
4.000% 08/25/99 1,550 1,550,335
Kimberly, Wisconsin, School District BANS
3.650% 06/01/00 10,000 10,009,300
Monona Grove, Wisconsin, School District
TRANS
3.750% 10/22/99 3,400 3,400,497
New London, Wisconsin, School District
TRANS
3.770% 10/01/99 3,800 3,800,365
Penwaukee, Wisconsin, School District
TRANS
3.700% 09/15/99 4,800 4,800,481
Random Lake, Wisconsin, School District
TRANS
3.760% 09/27/99 1,200 1,200,167
River Falls, Wisconsin, School District BANS
3.750% 11/01/99 6,000 6,014,869
Shorewood, Wisconsin, School District
TRANS
3.870% 09/01/99 2,450 2,450,119
Sparta, Wisconsin, Area School District
BANS
3.250% 03/01/00 5,000 5,001,197
Tomahawk, Wisconsin, School District
TRANS
3.710% 10/22/99 2,500 2,500,821
Two Rivers, Wisconsin, Public School
District TRANS
3.850% 09/30/99 1,700 1,700,408
Waterloo, Wisconsin, School District TRANS
3.900% 10/13/99 1,550 1,550,425
Waupaca, Wisconsin, School District BANS
3.200% 12/01/99 6,500 6,503,580
Wausau, Wisconsin, School District BANS
3.450% 06/01/00 7,000 7,007,140
Williams Bay, Wisconsin, School District
TRANS
4.000% 08/24/99 1,400 1,400,298
Wisconsin State Health & Educational
Facilities Authority Revenue Bonds
Series 1997F VR
3.350% 07/07/99 10,800 10,800,000
-------------
72,190,824
-------------
TOTAL MUNICIPAL BONDS
(Cost $743,352,048) 743,352,048
-------------
SHARES VALUE(DAGGER)
------ -------------
TEMPORARY INVESTMENTS -- 0.5%
Federated Tax-Free Obligation Fund 2,856,446 $ 2,856,446
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 914,632 914,632
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,771,078) 3,771,078
------------
TOTAL INVESTMENTS -- 105.8%
(Cost $747,123,126) 747,123,126
------------
OTHER ASSETS AND LIABILITIES -- (5.8%)
Interest receivable and other assets 4,907,590
Payable for securities purchased (44,015,040)
Dividends payable (1,853,549)
Accrued expenses (266,864)
------------
(41,227,863)
------------
NET ASSETS -- 100.0%
Applicable to 491,634,201 Institutional
Shares and 214,261,062 N Shares
outstanding, $.001 par value;
1.5 billion authorized shares
(Note 7) $705,895,263
============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE EACH FOR INSTITUTIONAL
SHARES AND N SHARES $1.00
=====
- ---------------
(DAGGER) See Note 2a to the Finanacial 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 06/30/99.
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
14
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
AGENCY OBLIGATIONS -- 1.0%
Federal Home Loan Bank
7.360% 07/01/04 $ 1,000 $ 1,050,973
Federal Home Loan Mortgage Corp.
7.100% 04/10/07 2,500 2,597,796
------------
TOTAL AGENCY OBLIGATIONS
(Cost $3,562,174) 3,648,769
------------
ASSET-BACKED SECURITIES -- 15.5%
AK Bank Series 1998-A, Class 1
7.500% 07/15/05 2,450 2,303,000
ARG Funding Corp. Series 1999-1A,
Class A2
5.880% 05/20/03 3,500 3,446,161
BankAmerica Manufactured Housing
Contract Series 1998-2, Class B1
7.930% 12/10/25 4,300 3,352,656
Capita Equipment Receivables Trust
Series 1996-1, Class A4
6.280% 06/15/00 2,398 2,401,012
Case Equipment Loan Trust Series 1997-A,
Class B
6.700% 03/15/04 750 743,068
Charming Shoppes Master Trust
Series 1997-1, Class A
5.338% 04/15/06 2,500 2,465,625
Chemical Credit Card Master Trust I
Series 1996-1, Class A
5.550% 09/15/03 3,000 2,977,020
Citibank Credit Card Master Trust I
Series 1997-2, Class B
6.700% 02/15/04 5,000 5,029,744
Comed Transitional Funding Trust
Series 1998-1, Class A7
5.740% 12/25/10 2,740 2,527,957
Credit Card Receivable Trust
Series 1998-IA, Class A
6.478% 12/22/04 2,758 2,686,328
Discover Card Master Trust I
Series 1999-1, Class A
5.300% 08/15/04 2,125 2,106,676
Green Tree Financial Corp. Series 1996-1,
Class A2
5.850% 03/15/27 2,608 2,605,924
Green Tree Financial Corp. Series 1997-4,
Class A5
6.880% 02/15/29 5,365 5,394,064
MBNA Corp. Series 1998-C, Class C
6.350% 11/15/05 3,000 2,930,625
Merrill Lynch Home Equity Loan
Series 1994-1, Class A1
5.168% 07/15/22 187 187,023
Metris Master Trust Series 1997-1, Class A
6.870% 10/20/05 1,725 1,739,002
Onyx Acceptance Grantor Trust,
Series 1998-A, Class A3
5.850% 08/15/02 4,000 3,975,000
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
ASSET-BACKED SECURITIES (CONTINUED)
SBC Glacier Finance Ltd. Series 1997-1,
Class A
5.256% 09/10/04 $ 3,500 $ 3,499,615
The Money Store Home Equity Trust
Series 1994-B, Class A3
7.100% 11/15/16 191 192,174
Toyota Auto Lease Trust Series 1997-A,
Class B
6.750% 04/26/04 3,500 3,486,328
-------------
TOTAL ASSET-BACKED SECURITIES
(Cost $55,533,135) 54,049,002
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 18.8%
Asset Securitization Corp. Series 1997-D4,
Class PS1 IO
1.233% 04/14/29 67,257 4,382,244
Chase Mortgage Finance Corp.
Series 1993-0, Class A5
6.600% 12/25/09 3,051 3,047,992
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A4
5.770% 11/25/08 4,745 4,753,171
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A5
7.468% 11/25/08 1,595 1,474,327
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A6
8.500% 11/25/08 960 964,431
Countrywide Funding Corp. Series 1994-5,
Class A7F
5.619% 03/25/09 2,915 2,892,742
Countrywide Funding Corp. Series 1994-5,
Class A7S
7.254% 03/25/09 1,097 919,094
Countrywide Funding Corp. Series 1994-5,
Class A7T
9.000% 03/25/09 696 699,831
DLJ Commercial Mortgage Corp.
Series 1998-CF2, Class S IO
1.070% 11/12/3 52,488 2,741,282
DLJ Mortgage Acceptance Corp.
Series 1995-Q1, Class A1-S IO
1.832% 03/25/25 160 25,557
DLJ Mortgage Acceptance Corp.
Series 1996-M, Class A1
7.463% 11/28/11 5,123 4,968,238
DLJ Mortgage Acceptance Corp.
Series 1997-CF2, Class CP IO
1.363% 11/15/04 51,000 3,061,992
Federal National Mortgage Association
Series 116, Class 2 IO
9.000% 12/25/21 4,718 1,460,318
Federal National Mortgage Association
Series 1990-32, Class E
9.000% 12/25/04 2,017 2,030,067
Federal National Mortgage Association
Series 1993-183, Class M
6.500% 07/25/23 2,000 1,947,300
See Notes to Financial Statements
15
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Series 1994-85, Class E
6.000% 11/25/06 $ 1,094 $ 1,096,135
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 21,414 709,346
Federal National Mortgage Association
Series 1997-70, Class PE PO
6.221% 04/25/22 4,412 3,348,563
Federal National Mortgage Association
Series 1998-T1, Class A
6.685% 12/28/28 2,819 2,760,324
J.P. Morgan Commercial Mortgage
Finance Corp. Series 1999-C7, Class A2
6.507% 10/15/35 3,250 3,159,585
Morgan Stanley Capital I Series 1998-WF1,
Class A1
6.250% 07/15/07 3,404 3,359,093
Morgan Stanley Capital I Series 1999-WF1,
Class A2
6.210% 09/15/08 2,260 2,161,125
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 3,095 3,101,186
PNC Mortgage Securities Corp.
Series 1996-2, Class A4
6.600% 02/25/11 4,534 4,369,980
PNC Mortgage Securities Corp.
Series 1997-5, Class A8
6.750% 10/25/27 6,000 5,998,125
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $68,288,796) 65,432,048
------------
MORTGAGE-BACKED SECURITIES -- 8.9%
Federal Home Loan Mortgage Corp.
7.500% 05/01/27 493 499,634
Federal National Mortgage Association
6.500% 01/15/14 10,000 9,865,625
6.500% 01/15/29 8,500 8,210,469
Federal National Mortgage Association
Pool #303724
6.000% 01/01/11 5,059 4,958,097
Federal National Mortgage Association
Pool #305189
9.000% 01/01/25 17 18,596
Federal National Mortgage Association
Pool #305555
9.000% 01/01/25 179 191,036
Federal National Mortgage Association
Pool #306031
9.000% 02/01/25 316 336,695
Federal National Mortgage Association
Pool #306674
9.000% 03/01/25 183 194,687
Federal National Mortgage Association
Pool #317306
9.000% 07/01/25 141 149,779
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Federal National Mortgage Association
Pool #338001
9.000% 10/01/25 $ 10 $ 10,994
Government National Mortgage
Association Pool #8747
6.125% 11/20/25 124 125,410
Government National Mortgage
Association Pool #326150
7.000% 09/15/23 165 163,961
Government National Mortgage
Association Pool #333668
7.000% 07/15/23 451 447,971
Government National Mortgage
Association Pool #345039
7.000% 09/15/23 574 570,197
Government National Mortgage
Association Pool #345536
7.000% 01/15/24 390 387,121
Government National Mortgage
Association Pool #351638
7.000% 06/15/23 618 614,045
Government National Mortgage
Association Pool #377553
7.000% 07/15/25 546 541,473
Government National Mortgage
Association Pool #383330
7.000% 07/15/25 908 900,000
Government National Mortgage
Association Pool #391901
7.000% 07/15/25 433 429,744
Government National Mortgage
Association Pool #397755
7.000% 05/15/24 551 546,665
Government National Mortgage
Association Pool #406568
7.000% 07/15/25 752 745,547
Government National Mortgage
Association Pool #407660
7.000% 07/15/25 507 502,367
Government National Mortgage
Association Pool #780023
7.000% 09/15/24 606 603,242
-------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $30,709,183) 31,013,355
-------------
CORPORATE BONDS -- 29.3%
ELECTRIC -- 1.0%
Consolidated Edison Co., Inc.
6.625% 07/01/05 2,150 2,128,500
Texas Utilities Electric Co.
6.750% 04/01/03 1,420 1,423,550
-------------
3,552,050
-------------
See Notes to Financial Statements
16
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
CORPORATE BONDS (CONTINUED)
FINANCE - BANK -- 5.7%
Bank One Corp
7.250% 08/15/04 $ 3,320 $ 3,398,850
BankAmerica Corp.
7.500% 10/15/02 2,320 2,395,400
Mercantile Bancorp
7.050% 06/15/04 3,300 3,324,750
NationsBank Corp.
6.500% 08/15/03 2,310 2,304,225
Providian National Bank
6.650% 02/01/04 3,375 3,307,500
Sanwa Business Credit Corp.
5.165% 03/13/00 5,000 4,993,500
------------
19,724,225
------------
FINANCE - NON-BANK -- 9.7%
American Express Credit Corp.
6.125% 11/15/01 440 440,000
Associates Corp. of North America
5.750% 10/15/03 190 184,300
Associates Corp. of North America
Euro Bond
6.875% 06/20/02 1,775 1,788,313
Beneficial Corp.
8.400% 05/15/08 20 21,900
Beneficial Finance Corp. MTN
9.130% 07/25/01 1,000 1,053,750
Camden Property Trust
7.000% 04/15/04 3,500 3,434,375
Case Credit Corp.
5.930% 02/26/01 4,000 3,980,000
General Motors Acceptance Corp.
6.850% 06/17/04 3,375 3,421,406
Hartford Life, Inc.
7.100% 06/15/07 3,725 3,757,594
Household Finance Corp.
8.550% 10/15/04 3,000 3,015,000
Lehman Brothers Holdings, Inc.
7.375% 05/15/04 4,540 4,591,075
Morgan Stanley Dean Witter & Co.
5.625% 01/20/04 3,475 3,349,031
Salomon Smith Barney Holdings, Inc.
5.875% 02/01/01 3,885 3,875,288
SunAmerica, Inc.
5.600% 07/31/97 1,050 779,940
------------
33,691,972
------------
INDUSTRIAL -- 6.6%
Cendant Corp.
7.750% 12/01/03 1,530 1,549,125
Cox Communications, Inc.
6.690% 09/20/04 3,275 3,238,156
Ford Motor Co.
9.000% 09/15/01 4,000 4,215,000
James River Corp.
6.700% 11/15/03 4,000 3,995,000
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
CORPORATE BONDS (CONTINUED)
INDUSTRIAL (CONTINUED)
Monsanto Co.
5.750% 12/01/05 $ 2,240 $ 2,130,800
5.875% 12/01/08 1,725 1,606,406
Rite Aid Corp.
7.125% 01/15/07 3,615 3,542,700
Sears, Roebuck & Co. MTN
8.390% 02/14/02 800 838,000
Sears, Roebuck Acceptance Corp.
6.020% 02/20/03 1,400 1,377,250
WMX Technologies, Inc.
6.250% 10/15/00 700 700,875
------------
23,193,312
------------
OIL -- 1.3%
Atlantic Richfield Co.
9.125% 03/01/11 100 118,625
Conoco, Inc.
5.900% 04/15/04 1,525 1,492,594
Petro Mexicanos Finance, Ltd.
5.720% 11/15/03 2,925 2,869,337
------------
4,480,556
------------
TELEPHONES -- 4.1%
Airtouch Communications, Inc.
6.650% 05/01/08 3,000 2,936,250
AT&T Corp.
6.000% 03/15/09 2,435 2,301,075
GTE California, Inc.
5.500% 01/15/09 2,500 2,268,750
Sprint Capital Corp.
5.875% 05/01/04 3,475 3,362,063
Worldcom, Inc.
6.400% 08/15/05 3,705 3,617,006
------------
14,485,144
------------
TRANSPORTATION -- 0.9%
Norfolk Southern Corp.
7.350% 05/15/07 3,000 3,071,250
------------
TOTAL CORPORATE BONDS
(Cost $103,341,540) 102,198,509
------------
SUPRANATIONAL BONDS -- 0.9%
African Development Bank (Cost $3,069,492)
7.750% 12/15/01 3,000 3,097,500
------------
YANKEE BONDS -- 4.1%
Banco Santiago S.A.
7.000% 07/18/07 3,730 3,203,138
Cable & Wireless Communications Notes
6.625% 03/06/05 955 933,513
Empresa Nacional Electric
7.750% 07/15/08 2,400 2,262,000
Export-Import Bank Korea
6.500% 11/15/06 2,185 2,086,675
See Notes to Financial Statements
17
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
YANKEE BONDS (CONTINUED)
Korea Development Bank
7.375% 09/17/04 $ 1,415 $ 1,390,238
Korea Electric Power Global
6.375% 12/01/03 1,455 1,371,338
PDVSA Finance Ltd. Series 1999-H
9.375% 11/15/07 3,100 3,052,880
------------
TOTAL YANKEE BONDS
(Cost $15,104,841) 14,299,782
------------
U.S. TREASURY OBLIGATIONS -- 14.5%
U.S. TREASURY BILLS* -- 0.3%
4.830% 12/09/99 1,000 978,712
------------
U.S. TREASURY NOTES -- 13.5%
6.625% 07/31/01 1,185 1,208,495
6.375% 09/30/01 500 507,710
7.500% 11/15/01 1,650 1,717,470
5.875% 11/30/01 2,290 2,302,375
6.625% 04/30/02 1,215 1,244,838
6.500% 05/31/02 4,910 5,025,723
5.750% 10/31/02 1,500 1,501,662
5.500% 01/31/03 885 877,879
7.875% 11/15/04 410 447,171
6.500% 05/15/05 1,200 1,234,594
7.000% 07/15/06 29,530 31,290,989
------------
47,358,906
------------
U.S. TREASURY STRIPS -- 0.7%
0.000% 02/15/03 2,900 2,358,900
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $51,138,275) 50,696,518
------------
SHARES VALUE(DAGGER)
------ -------------
TEMPORARY INVESTMENTS -- 7.0%
Goldman Sachs Financial Square
Money Market Portfolio 12,241,531 $ 12,241,531
Goldman Sachs Institutional Liquid Assets
Money Market Portfolio 12,376,703 12,376,703
J.P. Morgan Institutional Prime Money
Market Portfolio 170 170
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $24,618,404) 24,618,404
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $355,365,840) $349,053,887
============
- ---------------
(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; interest rate is effective yield.
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
------------ ------------
Futures Contracts -- Short Position
U.S. Treasury Notes, September 1999 200 $(273,438)
=== =========
See Notes to Financial Statements
18
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $355,365,840) ................... $349,053,887
Collateral receivable for securities loaned ................ 18,657,500
Interest receivable ........................................ 4,134,912
Receivable for capital stock sold .......................... 192,773
Other assets ............................................... 27,884
------------
Total assets ........................................ 372,066,956
------------
LIABILITIES
Payable upon return of securities loaned ................... 18,657,500
Payable for securities purchased ........................... 17,983,389
Payable for capital stock redeemed ......................... 113,840
Dividends payable .......................................... 1,310,910
Accrued expenses ........................................... 176,759
Other liabilities .......................................... 226,563
------------
Total liabilities ................................... 38,468,961
-----------
NET ASSETS
Applicable to 32,613,610 Institutional Shares
and 800,902 N Shares outstanding, $.001 par
value; 200,000,000 authorized shares (Note 7) ................ $333,597,995
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE ($325,602,067/32,613,610) ............ $9.98
=====
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER N SHARE ($7,995,928/800,902) ............................. $9.98
=====
See Notes to Financial Statements
19
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
ASSET-BACKED SECURITIES -- 14.4%
AK Bank Series 1998-A, Class 1
7.500% 07/15/05 $ 1,300 $ 1,222,000
ARG Funding Corp. Series 1999-1A,
Class A2
5.880% 05/20/03 1,400 1,378,464
BankAmerica Manufactured Housing
Contract Series 1998-2, Class B1
7.930% 12/10/25 2,284 1,780,806
Capita Equipment Receivables Trust
Series 1996-1, Class A4
6.280% 06/15/00 343 343,002
Case Equipment Loan Trust Series 1997-A,
Class B
6.700% 03/15/04 750 743,068
Charming Shoppes Master Trust
Series 1997-1, Class A
5.338% 04/15/06 2,500 2,465,625
Chemical Credit Card Master Trust
Series 1995-2, Class A
6.230% 06/15/03 610 614,559
Citibank Credit Card Master Trust I
Series 1997-2, Class B
6.700% 02/15/04 1,000 1,005,949
Comed Transitional Funding Trust
Series 1998-1, Class A7
5.740% 12/25/10 1,535 1,416,210
Discover Card Master Trust I Series 1999-1,
Class A
5.300% 08/15/04 2,250 2,230,598
First Plus Home Loan Trust Series 1997-3,
Class A6
7.080% 07/10/17 1,125 1,125,000
Green Tree Financial Corp. Series 1997-4,
Class A5
6.880% 02/15/29 2,000 2,010,835
Green Tree Financial Corp. Series 1997-7,
Class A8
6.860% 08/15/29 3,351 3,223,730
Household Credit Card Master Trust I
Series 1995-1, Class A
5.158% 12/15/02 780 781,316
MBNA Corp. Series 1998-C, Class C
6.350% 11/15/05 1,250 1,221,094
Metris Master Trust Series 1997-1, Class A
6.870% 10/20/05 3,350 3,377,192
SBC Glacier Finance Ltd. Series 1997-1,
Class A
5.256% 09/10/04 1,500 1,499,835
Team Fleet Financing Corp. Series 1997-1,
Class A
7.350% 05/15/03 1,250 1,266,672
The Money Store Home Equity Trust
Series 1994-B, Class A3
7.100% 11/15/16 68 68,634
Toyota Auto Lease Trust Series 1997-A,
Class B
6.750% 04/26/04 1,500 1,494,141
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $30,176,890) 29,268,730
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 23.4%
Asset Securitization Corp. Series 1997-D4,
Class PS1 IO
1.233% 04/14/29 $16,074 $ 1,047,293
Chase Commercial Mortgage Securities
Corp. Series 1997-1, Class A1
7.270% 07/19/04 1,466 1,492,750
Chase Mortgage Finance Corp.
Series 1993-0, Class A5
6.600% 12/25/09 693 692,725
Chase Mortgage Finance Corp.
Series 1999-AS2, Class 2A4
6.500% 07/25/29 4,200 3,995,905
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A4
5.770% 11/25/08 2,478 2,482,548
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A5
7.468% 11/25/08 833 770,030
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A6
8.500% 11/25/08 502 503,716
Countrywide Funding Corp. Series 1994-11,
Class A12
9.777% 05/25/24 120 120,053
DLJ Commercial Mortgage Corp.
Series 1998-CF2, Class S IO
1.070% 11/12/31 28,331 1,479,638
DLJ Mortgage Acceptance Corp.
Series 1996-M, Class A1
7.792% 11/28/11 683 662,431
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
6.588% 05/25/28 1,731 1,672,854
Federal Home Loan Mortgage Corp.
Series 1848, Class PG
7.000% 05/15/26 4,773 4,699,299
Federal Home Loan Mortgage Corp.
Series 1865, Class PE
7.000% 07/15/26 750 738,529
Federal Home Loan Mortgage Corp.
Series 1875, Class SA IO
18.200% 09/15/03 7,416 1,668,705
Federal Home Loan Mortgage Corp.
Series 2075, Class QG
6.250% 12/15/26 3,000 2,823,750
Federal Home Loan Mortgage Corp.
Series 2131, Class VD
6.000% 05/15/14 2,412 2,247,960
Federal National Mortgage Association
Series 110, Class 2 IO
9.000% 11/25/19 1,500 469,979
Federal National Mortgage Association
Series 145, Class 1 PO
9.236% 06/25/22 1,575 1,186,049
Federal National Mortgage Association
Series 1993-210, Class S
10.094% 11/25/23 1,145 1,024,775
See Notes to Financial Statements
20
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Series 1996-53, Class PE
6.500% 11/18/10 $ 2,375 $ 2,372,835
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 10,832 358,816
J.P. Morgan Commercial Mortgage Finance
Corp. Series 1999-C7, Class A2
6.507% 10/15/35 1,750 1,701,315
LB Commercial Conduit Mortgage Trust
Series 1999-C1, Class X IO
0.693% 07/15/23 26,767 1,203,425
Merrill Lynch Mortgage Investors, Inc.
Series 1998-C2, Class A1
6.220% 02/15/30 1,066 1,051,550
Morgan Stanley Capital I Series 1998-WF1,
Class A1
6.250% 07/15/07 147 145,117
Morgan Stanley Capital I Series 1999-WF1,
Class A2
6.210% 09/15/08 1,080 1,032,750
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 2,100 2,104,197
PNC Mortgage Securities Corp.
Series 1997-5, Class A8
6.750% 10/25/27 2,188 2,186,926
Residential Asset Securitization Trust
Series 1997-A8, Class A3
7.000% 10/25/27 462 460,589
Residential Asset Securitization Trust
Series 1998-A5, Class A5
6.750% 06/25/28 3,500 3,426,575
Residential Funding Mortgage Security I
Series 1993-S20, Class A11
7.250% 06/25/08 1,715 1,730,696
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $48,675,216) 47,553,780
------------
MORTGAGE-BACKED SECURITIES -- 9.7%
Federal National Mortgage Association
6.000% 01/15/14 5,800 5,606,062
6.500% 01/15/14 2,150 2,121,109
6.500% 01/15/29 2,700 2,608,031
7.000% 01/15/29 2,800 2,770,250
Federal National Mortgage Association
Pool #305555
9.000% 01/01/25 183 195,205
Federal National Mortgage Association
Pool #359740
7.000% 10/01/26 164 162,752
Federal National Mortgage Association
Pool #364248
7.000% 01/01/27 297 295,054
Federal National Mortgage Association
Pool #364731
7.000% 12/01/26 243 241,536
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ ------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Government National Mortgage
Association Pool #780167
7.000% 12/15/24 $ 5,593 $ 5,572,151
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $19,801,120) 19,572,150
------------
CORPORATE BONDS -- 22.0%
ELECTRIC -- 0.7%
Public Service Electric & Gas Co.
6.500% 05/01/04 1,000 997,500
Texas Utilities Electric Co.
6.750% 04/01/03 500 501,250
------------
1,498,750
------------
FINANCE - BANK -- 1.2%
Mellon Financial Co.
6.300% 06/01/00 500 501,959
Providian National Bank
6.650% 02/01/04 1,900 1,862,000
------------
2,363,959
------------
FINANCE - NON-BANK -- 5.8%
Associates Corp. of North America
8.550% 07/15/09 1,790 1,975,712
Associates Corp. of North America
Euro Bond
6.875% 06/20/02 355 357,662
Camden Property Trust
7.000% 04/15/04 2,000 1,962,500
Commercial Credit Co.
7.750% 03/01/05 210 218,662
General Motors Acceptance Corp.
6.850% 06/17/04 1,900 1,926,125
Lehman Brothers Holdings, Inc.
8.800% 03/01/15 630 683,550
PaineWebber Group, Inc.
6.750% 02/01/06 1,000 966,250
Salomon Smith Barney Holdings, Inc.
5.875% 02/01/01 200 199,500
6.500% 10/15/02 200 200,250
SunAmerica, Inc.
5.600% 07/31/97 480 356,544
U.S. West Capital Funding, Inc.
6.875% 07/15/28 1,740 1,570,350
Xerox Credit Corp. Euro Bond
5.400% 09/11/00 1,300 1,294,324
-------------
11,711,429
-------------
INDUSTRIAL -- 10.9%
A.H. Belo Corp.
7.250% 09/15/27 1,500 1,408,125
Air Products & Chemicals, Inc.
6.862% 10/25/03 2,250 2,264,062
Boston University
7.625% 07/15/97 410 406,412
Cendant Corp.
7.750% 12/01/03 700 708,750
See Notes to Financial Statements
21
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
CORPORATE BONDS (CONTINUED)
INDUSTRIAL (CONTINUED)
Cox Communications, Inc.
6.690% 09/20/04 $ 1,800 $ 1,779,750
Cummins Engine Co., Inc.
5.650% 03/01/98 1,885 1,265,306
Ford Motor Co.
7.500% 08/01/26 360 360,000
7.400% 11/01/46 1,505 1,463,612
Hertz Corp.
6.500% 04/01/00 500 501,875
Honeywell, Inc.
7.350% 05/15/00 200 202,750
International Business Machines Corp.
7.000% 10/30/25 1,720 1,698,500
James River Corp.
6.700% 11/15/03 2,000 1,997,500
Monsanto Co.
5.750% 12/01/05 1,130 1,074,913
5.875% 12/01/08 870 810,188
Procter & Gamble Co. Euro Bond
9.625% 01/14/01 400 421,500
Sears, Roebuck Acceptance Corp.
6.020% 02/20/03 1,350 1,328,063
Time Warner Entertainment, Inc.
8.375% 07/15/33 1,950 2,127,938
Wal-Mart Stores, Inc.
9.100% 07/15/00 100 103,250
Wal-Mart Stores, Inc. Euro Bond
6.750% 05/24/02 125 125,781
Xerox Capital Trust I
8.000% 02/01/27 810 815,063
Xerox Corp. Euro Bond
5.750% 07/21/00 1,310 1,308,363
------------
22,171,701
------------
OIL -- 0.6%
Petro Mexicanos Finance, Ltd.
5.720% 11/15/03 1,365 1,335,994
------------
TELEPHONES -- 2.0%
Airtouch Communications, Inc.
6.650% 05/01/08 450 440,438
GTE California, Inc.
5.500% 01/15/09 885 803,138
New England Telephone & Telegraph Co.
7.875% 11/15/29 1,720 1,842,550
Sprint Capital Corp.
6.900% 05/01/19 990 925,650
------------
4,011,776
------------
TRANSPORTATION -- 0.8%
CSX Corp.
7.250% 05/01/27 1,610 1,636,163
------------
TOTAL CORPORATE BONDS
(Cost $46,018,266) 44,729,772
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ ------------
SUPRANATIONAL BONDS -- 1.0%
African Development Bank (Cost $2,046,328)
7.750% 12/15/01 $ 2,000 $ 2,065,000
------------
YANKEE BONDS -- 4.9%
Banco Santiago S.A.
7.000% 07/18/07 1,610 1,382,588
Cable & Wireless Communications
Notes
6.625% 03/06/05 465 454,538
Dresdner Funding Trust I
8.151% 06/30/31 265 262,350
Empresa Nacional Electric
7.750% 07/15/08 1,700 1,602,250
Export-Import Bank Korea
6.500% 11/15/06 240 229,200
Hydro-Quebec
8.050% 07/07/24 220 238,425
Korea Development Bank
7.375% 09/17/04 1,045 1,026,713
Korea Electric Power Global
6.375% 12/01/03 605 570,213
PDVSA Finance Ltd. Series 1999-H
9.375% 11/15/07 1,550 1,526,440
Sony Corp.
6.125% 03/04/03 2,210 2,190,663
United Utilities P.L.C.
6.450% 04/01/08 500 475,625
------------
TOTAL YANKEE BONDS
(Cost $10,368,686) 9,959,005
------------
U.S. TREASURY OBLIGATIONS -- 13.4%
U.S. TREASURY BILLS -- 0.3%
4.395% 09/16/99 120 118,822
4.590% 11/12/99 500 491,141
------------
609,963
------------
U.S. TREASURY BONDS -- 3.5%
8.000% 11/15/21 5,895 7,095,967
------------
U.S. TREASURY NOTES -- 9.6%
6.500% 05/31/01 500 508,942
6.625% 07/31/01 365 372,237
7.500% 11/15/01 510 530,855
7.875% 11/15/04 7,605 8,294,481
7.000% 07/15/06 5,490 5,817,390
4.750% 11/15/08 4,300 3,947,585
------------
19,471,490
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $27,730,271) 27,177,420
------------
See Notes to Financial Statements
22
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ ------------
COMMERCIAL PAPER -- 7.1%
CSX Corp.
5.240% 07/19/99 $ 6,400 $ 6,383,232
MCI Worldcom, Inc.
5.180% 07/09/99 8,000 7,990,791
------------
TOTAL COMMERCIAL PAPER
(Cost $14,374,023) 14,374,023
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 4.1%
Goldman Sachs Financial Square
Money Market Portfolio 4,556,844 4,556,844
Goldman Sachs Institutional Liquid
Assets Money Market Portfolio 3,840,088 3,840,088
J.P. Morgan Institutional Prime
Money Market Portfolio 1 1
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $8,396,933) 8,396,933
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $207,587,733) $203,096,813
============
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
IO -- Interest Only Security.
PO -- Principal Only Security; interest rate is effective yield.
See Notes to Financial Statements
23
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $207,587,733) .................... $203,096,813
Collateral receivable for securities loaned ................. 2,823,750
Interest receivable ......................................... 2,096,491
Receivable for securities sold. ............................. 4,931,826
Receivable for capital stock sold ........................... 377,301
Other assets. ............................................... 25,520
------------
Total assets. ........................................ 213,351,701
------------
LIABILITIES
Payable upon return of securities loaned .................... 2,823,750
Payable for securities purchased ............................ 19,592,128
Payable for capital stock redeemed .......................... 741,466
Dividend payable ............................................ 558,910
Accrued expenses ............................................ 89,779
------------
Total liabilities .................................... 23,806,033
------------
NET ASSETS
Applicable to 18,995,514 Institutional Shares,
381,874 N Shares and 1,903 A Shares
of beneficial interest outstanding, $.001
par value (Note 7) .......................................... $189,545,668
============
NET ASSET VALUE, OFFERING AND REDEMPTION PER
INSTITUTIONAL SHARE ($185,792,066/18,995,514) ............... $ 9.78
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER N SHARE ($3,734,994/381,874) ............................ $ 9.78
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($18,608/1,903) ............................................. $ 9.78
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($9.78/0.955) (Note 5) ...................................... $10.24
======
See Notes to Financial Statements
24
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
AGENCY OBLIGATIONS -- 33.2%
Banco Vivienda del Peru
9.980% 08/01/08 $ 3,230 $ 3,649,800
Federal Farm Credit Bank
7.170% 04/25/02 3,500 3,623,060
Federal Home Loan Bank
5.655% 07/10/01 3,500 3,488,391
4.860% 10/05/01 3,500 3,424,405
Federal Home Loan Mortgage Corp.
7.010% 07/11/07 850 855,936
Federal National Mortgage Association
5.375% 03/15/02 1,350 1,331,438
5.750% 04/15/03 2,085 2,065,269
5.125% 02/13/04 3,470 3,335,398
5.750% 06/15/05 2,000 1,964,433
Honduras Aid
13.000% 06/01/01 807 861,160
Private Export Funding Corp.
7.030% 10/31/03 1,650 1,707,750
Rowan Cos., Inc.
6.150% 07/01/10 4,217 4,064,134
Small Business Administration
Participation Certificates
Series 1995-20J, Class 1
6.850% 10/01/15 3,008 2,989,254
Small Business Administration
Participation Certificates
Series 1997-10C, Class 1
6.950% 05/01/07 1,289 1,300,717
------------
TOTAL AGENCY OBLIGATIONS
(Cost $35,082,767) 34,661,145
------------
ASSET-BACKED SECURITIES -- 11.0%
Citibank Credit Card Master Trust I
Series 1998-3, Class A
5.800% 02/07/05 525 517,207
Citibank Credit Card Master Trust I
Series 1999-5, Class A
6.100% 05/15/08 1,000 965,000
Contimortgage Home Equity Loan Trust
Series 1998-2, Class A5
6.280% 09/15/16 2,500 2,473,828
Discover Card Master Trust I
Series 1999-4, Class A
5.650% 11/15/04 1,455 1,432,038
Green Tree Home Equity Loan Trust
Series 1998-A, Class A5 IO
8.000% 06/15/29 10,000 1,214,063
Green Tree Home Equity Loan Trust
Series 1999-A, Class A3
5.980% 04/15/18 2,875 2,832,324
Metris Master Trust Series 1997-1, Class A
6.870% 10/20/05 2,000 2,016,234
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $11,593,183) 11,450,694
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 10.0%
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
6.588% 05/25/28 $ 1,403 $ 1,355,354
Federal Home Loan Mortgage Corp.
Series 202 IO
6.500% 04/01/29 1,891 610,362
Federal Home Loan Mortgage Corp.
Series 2171, Class B
6.279% 06/15/09 3,000 2,900,508
Federal National Mortgage Association
Series 1990-96, Class E
9.670% 01/25/17 111 111,660
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 7,305 241,973
Federal National Mortgage Association
Series 1998-M2, Class CP1 IO
0.945% 02/25/02 51,375 1,135,869
Federal National Mortgage Association
Series 1998-T1, Class A
6.685% 12/28/28 2,284 2,235,822
Government National Mortgage
Association Series 1999-2, Class C PO
4.418% 12/20/23 2,392 1,807,731
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $10,928,306) 10,399,279
------------
MORTGAGE-BACKED SECURITIES -- 18.3%
Federal Home Loan Mortgage Corp.
Pool #865008
8.445% 02/01/18 36 37,830
Federal National Mortgage Association
6.500% 01/15/29 2,600 2,511,438
Federal National Mortgage Association
Pool #8217
11.000% 12/01/15 1,042 1,156,858
Federal National Mortgage Association
Pool #73738
6.825% 11/01/01 3,712 3,726,764
Federal National Mortgage Association
Pool #73755
6.890% 01/01/02 2,851 2,855,530
Federal National Mortgage Association
Pool #303724
6.000% 01/01/11 2,615 2,548,720
Federal National Mortgage Association
Pool #375255
6.920% 07/01/04 983 996,804
Government National Mortgage
Association Pool #8720
6.125% 10/20/25 212 215,074
Government National Mortgage
Association Pool #162989
9.000% 05/15/16 12 12,913
Government National Mortgage
Association Pool #227125
9.000% 07/15/17 15 16,058
See Notes to Financial Statements
25
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ------ -------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Government National Mortgage
Association Pool #346458
8.000% 03/15/23 $ 158 $ 163,997
Government National Mortgage
Association Pool #352110
7.000% 08/15/23 2,417 2,403,126
Government National Mortgage
Association Pool #780389
9.000% 08/15/09 2,230 2,401,818
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $18,813,161) 19,046,930
------------
U.S. TREASURY OBLIGATIONS -- 22.7%
U.S. TREASURY BILLS* -- 0.1%
4.520% 09/16/99 120 118,822
------------
U.S. TREASURY BONDS -- 12.1%
8.875% 08/15/17 2,659 3,395,754
8.750% 08/15/20 5,250 6,740,282
8.000% 11/15/21 1,700 2,046,335
6.750% 08/15/26 400 428,122
------------
12,610,493
------------
U.S. TREASURY NOTES -- 10.5%
7.875% 11/15/04 4,025 4,389,913
7.000% 07/15/06 6,200 6,569,730
------------
10,959,643
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $24,553,215) 23,688,958
------------
COMMERCIAL PAPER -- 4.8%
Variable Funding Capital Corp.
(Cost $4,989,542)
5.020% 07/16/99 5,000 4,989,542
-----------
SHARES VALUE(DAGGER)
------ -------------
TEMPORARY INVESTMENTS -- 1.1%
Goldman Sachs Financial Square Treasury
Obligation Portfolio (Cost $1,201,308) 1,201,308 $ 1,201,308
------------
TOTAL INVESTMENTS -- 101.1%
(Cost $107,161,482) 105,437,856
------------
OTHER ASSETS AND LIABILITIES -- (1.1%)
Interest receivable and other assets 1,510,464
Receivable for capital stock sold 86,794
Payable for securities purchased (2,558,165)
Payable for capital stock redeemed (94,553)
Dividends payable (52,420)
Accrued expenses (42,654)
------------
(1,150,534)
------------
NET ASSETS -- 100.0%
Applicable to 6,258,548 Institutional Shares,
288,109 N Shares and 12,213 A Shares
of beneficial interest outstanding,
$.001 par value (Note 7) $104,287,322
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
SHARE ($99,512,439/6,258,548) $15.90
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($4,580,698/288,109) $15.90
======
NET ASSET VALUE AND REDEMPTION
PRICE PER A SHARE ($194,185/12,213) $15.90
======
MAXIMUM PUBLIC OFFERING PRICE
PER A SHARE ($15.90/0.965) (NOTE5) $16.48
======
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
* Security pledged as collateral for futures contracts.
IO - Interest Only Security.
PO - Principal Only Security; interest rate is effective yield.
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
------------ ------------
Futures Contracts -- Short Position
U.S. Treasury Notes, September 1999 81 $(88,594)
== ========
See Notes to Financial Statements
26
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS -- 95.0%
ARIZONA -- 5.3%
Arizona Health Facilities Authority, Arizona
Hospital Systems Revenue Bonds
(Samaritan Health Services)
6.250% 12/01/06 $ 4,000 $ 4,220,000
Salt River Project, Arizona Agriculture
& Improvement District Revenue Bonds
Series B
6.500% 01/01/04 6,050 6,556,687
------------
10,776,687
------------
CALIFORNIA -- 6.9%
Alameda Corridor Transportation Authority,
California Revenue Bonds Series A
5.000% 10/01/11 2,000 2,000,000
California Educational Facilities Authority
Revenue Bonds (Stanford University)
Series P
5.250% 12/01/13 2,500 2,559,375
Central Coast Water Authority, California
Revenue Bonds (State Water Project
Regional Facilities)
6.500% 10/01/14 6,000 6,540,000
Redding, California, Joint Powers Financing
Authority Electric System Revenue Bonds
Series A
5.250% 06/01/15 3,000 3,015,000
------------
14,114,375
------------
COLORADO -- 3.5%
Denver, Colorado, City & County Airport
Revenue Bonds Series A
7.500% 11/15/06 3,000 3,352,500
Denver, Colorado, City & County School
District No. 1 General Obligation Bonds
5.375% 12/01/15 3,750 3,778,125
------------
7,130,625
------------
DELAWARE -- 1.9%
Delaware State General Obligation Bonds
6.125% 04/01/01 3,700 3,829,500
------------
FLORIDA -- 5.2%
Broward County, Florida, School Board
Certificates of Participation Revenue
Bonds Series C
5.750% 07/01/05 3,615 3,836,419
Florida State Department of Transportation-
Right of Way General Obligation Bonds
Series B
5.000% 07/01/15 500 486,875
Gainesville, Florida, Utilities System
Revenue Bonds Series A
5.750% 10/01/07 1,500 1,597,500
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS (CONTINUED)
FLORIDA (CONTINUED)
Inland Protection Financing Corp., Florida
Special Obligation Revenue Bonds
5.000% 07/01/02 $ 4,000 $ 4,090,000
Lee County, Florida, Water & Sewer
Revenue Bonds Series A
4.750% 10/01/16 675 626,906
------------
10,637,700
------------
GEORGIA -- 3.3%
Atlanta, Georgia, Water & Wastewater
Revenue Bonds Series A
5.000% 11/01/09 415 418,112
5.500% 11/01/15 6,240 6,435,000
------------
6,853,112
------------
ILLINOIS -- 0.3%
Lake & McHenry Counties, Illinois,
Community United School District No. 118
General Obligation Bonds
0.000% 02/01/11 1,280 699,200
------------
INDIANA -- 4.6%
Anderson, Indiana, Economic Development
Revenue Bonds (Anderson University
Project)
5.000% 10/01/07 1,010 997,375
5.000% 10/01/08 1,015 1,001,044
Indiana Health Facility Financing Authority
Hospital Revenue Bonds (Clarian Health
Partners) Series A
6.000% 02/15/05 4,000 4,230,000
Indiana Municipal Power Agency, Power
Supply System Revenue Bonds Series B
6.000% 01/01/11 3,000 3,210,000
------------
9,438,419
------------
KANSAS -- 2.7%
Kansas State Department of Transportation
Highway Revenue Bonds
7.250% 03/01/04 2,555 2,852,019
Sedgwick County, Kansas, United School
District No.265 General Obligation Bonds
(Goddard Refunding & Improvement)
5.250% 10/01/11 2,590 2,635,325
------------
5,487,344
------------
KENTUCKY -- 0.5%
Jefferson County, Kentucky, School District
Financial Corp. School Building
Revenue Bonds Series B
5.125% 06/01/12 1,000 991,110
------------
See Notes to Financial Statements
27
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS (CONTINUED)
LOUISIANA -- 6.5%
Baton Rouge, Louisiana, Sales & Use Tax
Revenue Bonds Series A
5.250% 08/01/07 $ 6,000 $ 6,180,000
Louisiana State General Obligation Bonds
7.750% 08/01/06 5,000 5,906,250
Mississippi River Bridge Authority,
Louisiana Revenue Bonds
6.625% 11/01/06 1,130 1,221,812
------------
13,308,062
------------
MASSACHUSETTS -- 3.9%
Massachusetts State General Obligation
Bonds Series A
6.000% 11/01/10 5,000 5,400,000
Massachusetts State Health & Educational
Facilities Authority Revenue Bonds
(Northeastern University) Series D
7.125% 10/01/00 1,500 1,580,625
Southbridge, Massachusetts, General
Obligation Bonds
6.375% 01/01/12 1,000 1,061,250
------------
8,041,875
------------
MICHIGAN -- 6.1%
Chippewa County, Michigan, Hospital
Finance Revenue Bonds (Chippewa
County War Memorial Hospital)
Series A
5.000% 11/01/04 1,075 1,069,625
Chippewa County, Michigan, Hospital
Finance Revenue Bonds (Chippewa
County War Memorial Hospital) Series B
5.000% 11/01/04 2,140 2,129,300
Detroit, Michigan, Water Supply System
Revenue Bonds Series A
5.300% 07/01/09 1,000 1,030,000
Michigan State Building Authority Revenue
Bonds Series II
6.750% 10/01/07 3,000 3,221,250
Michigan State Hospital Finance Authority
Revenue Bonds (Chelsea Community
Hospital)
5.000% 05/15/12 3,630 3,330,525
Oakland University, Michigan
Revenue Bonds
5.000% 05/15/10 550 550,687
University of Michigan, Revenue Bonds
(Major Capital Project Student Fee B)
5.700% 04/01/09 1,000 1,051,250
------------
12,382,637
------------
MISSISSIPPI -- 1.6%
Mississippi River Bridge Authority
Revenue Bonds
6.750% 11/01/12 3,000 3,240,000
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS (CONTINUED)
MISSOURI -- 0.3%
Kansas City, Missouri, General Obligation
Bonds (Streetlight Project) Series B
5.000% 02/01/14 $ 590 $ 577,462
------------
MONTANA -- 2.4%
Forsyth, Montana, Pollution Control
Revenue Bonds (Portland General
Electric Co. Project) Series A
4.600% 05/01/33 5,000 5,012,500
------------
NEBRASKA -- 3.1%
American Public Energy Agency, Nebraska
Gas Supply Revenue Bonds (Nebraska
Public Gas Agency Project) Series A
5.250% 06/01/09 6,200 6,331,750
------------
NEW JERSEY -- 2.7%
New Jersey State Highway Authority,
Garden State Parkway General
Revenue Bonds
6.200% 01/01/10 5,000 5,525,000
------------
NEW YORK -- 13.4%
Long Island Power Authority, New York
Electric System Revenue Bonds Series A
5.500% 12/01/13 10,000 10,387,500
New York City, New York, General
Obligation Bonds Series A-1
6.250% 08/01/05 2,475 2,685,375
New York City, New York, General
Obligation Bonds Series H
6.000% 08/01/10 3,000 3,180,000
New York State General Obligation
Bonds Series B
6.375% 08/15/00 3,750 3,853,125
New York State Thruway Authority
Highway & Bridge Revenue Bonds
Series B
5.000% 04/01/08 5,000 5,037,500
New York State Thruway Authority
Highway & Bridge Revenue Bonds
Series C
5.000% 04/01/04 2,140 2,185,475
------------
27,328,975
------------
NORTH CAROLINA -- 1.2%
University of North Carolina, System
Pooled Revenue Bonds Series B
5.250% 10/01/12 2,400 2,436,000
------------
OHIO -- 5.0%
Butler County, Ohio, Hospital Facility
Revenue Bonds (Middletown Regulatory
Hospital Project)
6.750% 11/15/10 2,250 2,401,875
Cuyahoga County, Ohio, Hospital Revenue
Bonds (Cleveland Health Clinic) Series B
5.000% 01/01/09 2,115 2,088,563
See Notes to Financial Statements
28
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Loveland, Ohio, City School District General
Obligation Bonds Series A
5.000% 12/01/05 $ 1,400 $ 1,431,500
5.250% 12/01/13 600 599,250
Ohio State Building Authority, State
Correctional Facility Revenue Bonds
Series A
5.250% 10/01/08 1,000 1,026,250
Warren, Ohio, Hospital Revenue Bonds
(Warren General Hospital Project) Series B
7.300% 11/15/14 2,325 2,627,250
------------
10,174,688
------------
OREGON -- 1.3%
Multnomah County, Oregon, School
District No. 1J Portland General
Obligation Bonds
5.250% 06/01/09 2,500 2,568,750
------------
PENNSYLVANIA -- 1.1%
Southeastern Pennsylvania Transportation
Authority Revenue Bonds Series B
5.250% 03/01/14 2,300 2,291,375
------------
SOUTH CAROLINA -- 1.3%
South Carolina State Capital Improvement
General Obligation Bonds Series V
6.500% 02/01/00 2,635 2,680,296
------------
TENNESSEE -- 3.6%
Tennessee State General Obligation Bonds
5.000% 05/01/08 5,000 5,093,750
Williamson County, Tennessee,
General Obligation Bonds
5.250% 09/01/12 2,165 2,205,594
------------
7,299,344
------------
TEXAS -- 1.6%
Bexar County, Texas, Detention Facilities
General Obligation Bonds
7.250% 06/15/04 1,000 1,118,750
West Central Texas Municipal Water
District Revenue Bonds, Water
Transmission Line Contract
6.750% 11/01/03 2,000 2,182,500
------------
3,301,250
------------
UTAH -- 2.5%
Utah State General Obligation Bonds
6.000% 07/01/01 5,000 5,187,500
------------
WASHINGTON -- 1.5%
Washington State Motor Vehicle Fuel Tax
General Obligation Bonds Series F
5.300% 07/01/13 1,000 1,005,000
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS (CONTINUED)
WASHINGTON (CONTINUED)
Washington State Public Power Supply
System Nuclear Project No. 2
Revenue Bonds
5.750% 07/01/09 $ 2,000 $ 2,105,000
------------
3,110,000
------------
WISCONSIN -- 1.7%
Hartford, Wisconsin, Sewer System
Revenue Bonds
4.750% 04/01/03 1,225 1,221,939
Wisconsin State Transportation
Revenue Bonds Series A
7.500% 07/01/04 2,000 2,262,500
------------
3,484,439
------------
TOTAL MUNICIPAL BONDS
(Cost $195,350,279) 194,239,975
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 2.2%
Federated Tax-Free Obligation Fund 1,473,226 1,473,226
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 3,036,730 3,036,730
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $4,509,956) 4,509,956
------------
TOTAL INVESTMENTS -- 97.2%
(Cost $199,860,235) 198,749,931
------------
OTHER ASSETS AND LIABILITIES -- 2.8%
Interest receivable and other assets 3,065,260
Receivable for securities sold 4,430,828
Receivable for capital stock sold 51,465
Payable for securities purchased (996,093)
Payable for capital stock redeemed (86,474)
Dividends payable (662,506)
Accrued expenses (137,940)
------------
5,664,540
------------
NET ASSETS -- 100.0%
Applicable to 19,369,187 Institutional
Shares and 305,929 N Shares of
beneficial interest outstanding,
$.001 par value (Note 7) $204,414,471
============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER INSTITUTIONAL SHARE
($201,236,015/19,369,187) $10.39
======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER N SHARE ($3,178,456/305,929) $10.39
======
- ---------------
(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, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS -- 96.1%
ALABAMA -- 1.9%
Jefferson County, Alabama, Sewer
Improvement Revenue Bonds Series A
5.750% 02/01/38 $3,000 $ 3,056,250
------------
ARIZONA -- 4.0%
Arizona University Revenue Bonds
5.250% 06/01/14 1,000 1,003,750
Maricopa County, Arizona, Hospital
Revenue Bonds
6.125% 04/01/18 1,250 1,317,187
Maricopa County, Arizona, Industrial
Development Authority Multi-Family
Housing Revenue Bonds (Advantage
Electric Projects) Series A
6.500% 07/01/16 1,900 2,113,750
Show Low, Arizona, Industrial
Development Authority Hospital
Revenue Bonds (Navapache Regional
Medical Center) Series A
5.500% 12/01/17 2,000 1,990,000
------------
6,424,687
------------
CALIFORNIA -- 7.9%
Alameda Corridor, California,
Transportation Authority Revenue
Bonds Series A
5.125% 10/01/15 2,500 2,475,000
California Educational Facilities Authority
Revenue Bonds (Stanford University)
Series P
5.000% 12/01/23 1,750 1,669,062
Los Angeles, California, Department of
Water & Power Electric Plant
Revenue Bonds
5.250% 06/15/17 2,935 2,916,656
Modesto, California, Irrigation District
Certificates of Participation Refunding
& Capital Improvement Bonds Series B
5.300% 07/01/22 2,000 1,992,500
San Diego County, California, Water
Authority Water Revenue Certificates of
Participation Series A
5.125% 05/01/16 3,750 3,693,750
-------------
12,746,968
-------------
COLORADO -- 0.7%
Colorado Springs, Colorado, Utilities
Revenue Bonds Unrefunded Balance
Series A
6.500% 11/15/15 1,000 1,063,750
-------------
CONNECTICUT -- 1.8%
Connecticut State General Obligation
Bonds Series B
6.000% 11/15/01 2,725 2,847,625
-------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS (CONTINUED)
FLORIDA -- 1.3%
Lee County, Florida, Water & Sewer
Revenue Bonds Series A
4.750% 10/01/16 $1,050 $ 975,187
Orlando, Florida, Utilities Commission
Water & Electric Revenue Bonds
Series D
6.750% 10/01/17 1,000 1,157,500
-------------
2,132,687
-------------
GEORGIA -- 8.4%
Atlanta, Georgia, Airport Facilities
Revenue Bonds
6.000% 01/01/07 2,000 2,152,500
Atlanta, Georgia, Water & Wastewater
Revenue Bonds Series A
5.500% 11/01/22 5,000 5,137,500
Metropolitan Atlanta Rapid Transportation
Authority, Georgia Sales Tax Revenue
Bonds Series N
6.200% 07/01/10 2,890 3,157,325
Metropolitan Atlanta Rapid Transportation
Authority, Georgia Sales Tax Revenue
Bonds Second Indenture Series B
5.100% 07/01/12 3,130 3,126,088
-------------
13,573,413
-------------
ILLINOIS -- 8.2%
De Kalb & Kane Counties, Illinois,
Community United School District
No. 427 General Obligation Bonds
5.500% 01/01/11 1,325 1,369,719
5.550% 01/01/12 1,125 1,164,375
Illinois Development Finance Authority
Revenue Bonds (School District No.
U46 Project)
9.000% 01/01/07 3,250 4,062,500
Illinois Development Finance Authority
Revenue Bonds (School District PG -
Rockford School No. 205)
6.650% 02/01/11 4,000 4,490,000
Illinois Educational Facilities Authority
Revenue Bonds (Shedd Aquarium
Society)
5.400% 07/01/14 1,000 1,012,500
Illinois State Sales Tax Revenue Bonds
Series V
6.375% 06/15/20 1,000 1,093,750
-------------
13,192,844
-------------
INDIANA -- 4.3%
Indiana Municipal Power Agency, Power
Supply System Revenue Bonds Series B
6.000% 01/01/11 6,455 6,906,850
-------------
See Notes to Financial Statements
30
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS (CONTINUED)
KENTUCKY -- 1.9%
Jefferson County, Kentucky, School
District Financial Corp. School Building
Revenue Bonds Series B
5.125% 06/01/13 $1,000 $ 985,790
Kentucky Economic Development Finance
Authority Hospital Facilities Revenue
Bonds (Pikeville United Methodist
Hospital)
5.700% 02/01/28 2,000 2,022,500
------------
3,008,290
------------
MASSACHUSETTS -- 1.5%
Massachusetts State Turnpike Authority
Metropolitan Highway System Revenue
Bonds Sub-Series A
5.250% 01/01/29 2,500 2,400,000
------------
MICHIGAN -- 11.6%
Detroit, Michigan, Water Supply System
Revenue Bonds
6.500% 07/01/15 1,000 1,136,250
Kent County, Michigan, Refuse Disposal
Systems General Obligation Bonds
Series A
5.000% 11/01/06 2,105 2,141,838
Michigan State Environmental Protection
Program General Obligation Bonds
6.250% 11/01/12 2,750 3,055,938
Michigan State Hospital Finance Authority
Revenue Bonds (Chelsea Community
Hospital)
5.375% 05/15/19 3,000 2,782,500
Oakland County, Michigan, Economic
Development Corp. Limited Obligation
Revenue Bonds (Cranbrook Educational
Community) Series C
6.900% 11/01/14 2,725 3,065,625
Pinckney, Michigan, Community Schools
General Obligation Bonds
5.500% 05/01/27 6,500 6,565,000
------------
18,747,151
------------
MISSISSIPPI -- 2.0%
Mississippi River Bridge Authority
Revenue Bonds
6.750% 11/01/12 3,000 3,240,000
------------
NEW JERSEY -- 1.4%
New Jersey State Highway Authority,
Garden State Parkway General
Revenue Bonds
6.200% 01/01/10 2,000 2,210,000
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS (CONTINUED)
NEW YORK -- 14.5%
Long Island Power Authority, New York
Electric System Revenue Bonds
Series A
5.500% 12/01/13 $2,000 $ 2,077,500
Metropolitan Transit Authority, New York
Transportation Facilities Revenue
Bonds Series C
5.125% 07/01/13 2,900 2,892,750
New York City, New York, General
Obligation Bonds Series H
6.000% 08/01/13 3,500 3,710,000
New York City, New York, Municipal Water
Finance Authority Water & Sewer
System Revenue Bonds Series A
5.625% 06/15/19 3,000 3,026,250
New York City, New York, Transitional
Finance Authority Revenue Bonds
Future Tax Secured Series C
5.500% 05/01/25 5,500 5,527,500
New York State Thruway Authority
Highway & Bridge Transportation
Fund Series B
5.000% 04/01/07 2,875 2,914,531
Port Authority of New York & New Jersey
Consolidated Series One Hundred
Revenue Bonds
5.625% 10/15/17 3,175 3,238,500
------------
23,387,031
------------
OHIO -- 5.7%
Ohio State Higher Educational Facilities
Community Revenue Bonds (Denison
University Project)
5.350% 11/01/10 1,000 1,018,750
Ohio State Turnpike Commission Turnpike
Revenue Bonds Series A
5.500% 02/15/17 3,000 3,097,500
5.500% 02/15/24 5,000 5,137,500
------------
9,253,750
------------
OREGON -- 3.7%
Oregon State Department of Administrative
Services Lottery Revenue Bonds
(Educational Projects) Series A
5.250% 04/01/13 6,000 6,060,000
------------
PENNSYLVANIA -- 0.9%
Pleasant Valley, Pennsylvania, School
District Capital Appreciation General
Obligation Bonds
0.000% 09/01/10 2,500 1,415,625
------------
TENNESSEE -- 2.6%
Tennessee State General Obligation Bonds
5.500% 05/01/27 4,180 4,232,250
------------
See Notes to Financial Statements
31
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- ------ -------------
MUNICIPAL BONDS (CONTINUED)
TEXAS -- 4.0%
Brazos River Authority, Texas Revenue
Bonds (Houston Industries, Inc.
Project) Series D
4.900% 10/01/15 $3,000 $ 2,887,500
Harris County, Texas, Criminal Justice
Center General Obligation Bonds
5.500% 10/01/12 2,540 2,584,450
North Texas Health Facilities Development
Corp. Revenue Bonds (United Regulatory
Health Care System Income Project)
5.000% 09/01/09 1,000 998,750
------------
6,470,700
------------
VERMONT -- 1.6%
Vermont Educational & Health Buildings
Financing Agency Revenue Bonds
(Middlebury College Project)
5.500% 11/01/16 2,550 2,578,688
------------
VIRGINIA -- 3.0%
Norfolk, Virginia, Water Revenue Bonds
5.875% 11/01/15 2,400 2,532,000
Richmond, Virginia, General Obligation
Bonds Series B
6.500% 07/15/02 2,160 2,297,700
------------
4,829,700
------------
WISCONSIN -- 3.2%
Wisconsin State General Obligation
Bonds Series 3
5.250% 11/01/10 5,000 5,100,000
------------
TOTAL MUNICIPAL BONDS
(Cost $153,043,549) 154,878,259
-------------
SHARES VALUE(DAGGER)
-------- -------------
TEMPORARY INVESTMENTS -- 1.9%
Federated Tax-Free Obligation Fund 1,442,420 $ 1,442,420
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 1,616,603 1,616,603
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,059,023) 3,059,023
------------
TOTAL INVESTMENTS -- 98.0%
(Cost $156,102,572) 157,937,282
------------
OTHER ASSETS AND LIABILITIES -- 2.0%
Interest receivable and other assets 2,512,985
Receivable for securities sold 1,728,997
Receivable for capital stock sold 715,428
Payable for securities purchased (990,772)
Payable for capital stock redeemed (69,853)
Dividends payable (579,160)
Accrued expenses (101,935)
------------
3,215,690
------------
NET ASSETS -- 100.0%
Applicable to 15,909,724 Institutional
Shares and 188,486 N Shares of
beneficial interest outstanding,
$.001 par value (Note 7) $161,152,972
============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER INSTITUTIONAL SHARE
($159,266,241/15,909,724) $10.01
======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER N SHARE ($1,886,731/188,486) $10.01
======
- ---------------
(DAGGER) See note 2a to the Financial Statements.
See Notes to Financial Statements
32
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- -------------
COMMON STOCK -- 8.5%
CHEMICALS -- 2.1%
Corning, Inc. 14,865 $ 1,042,408
------------
DRUGS -- 0.4%
Dura Pharmaceuticals, Inc.* 17,500 206,719
------------
ELECTRONICS -- 1.1%
Sensormatic Electronics Corp.* 1,815 0
Xilinx, Inc.* 9,802 561,164
------------
561,164
------------
HOTELS & RESTAURANTS -- 1.0%
Hilton Hotels Corp. 35,972 510,353
------------
INSURANCE -- 0.8%
American International Group, Inc. 3,113 364,416
------------
MEDIA -- 0.3%
AT&T Corp. (Liberty Media Group-
Class A)* 4,248 156,114
------------
MACHINERY & EQUIPMENT -- 0.7%
Wyman-Gordon Co.* 18,500 357,281
------------
MISCELLANEOUS FINANCE -- 0.5%
Healthcare Financial Partners, Inc.,
Series 144A* 12,500 250,000
------------
OFFICE EQUIPMENT -- 0.6%
Microsoft Corp.* 3,000 270,375
------------
TELEPHONES -- 0.0%
Intermedia Communications, Inc.* 811 0
------------
THRIFT INSTITUTIONS -- 1.0%
Washington Mutual, Inc. 13,249 468,683
------------
TOTAL COMMON STOCK
(Cost $3,268,575) 4,187,513
------------
CONVERTIBLE PREFERRED STOCK -- 43.5%
AUTO RELATED -- 0.4%
Fleetwood Capital Trust, 6.000%, 02/15/28,
Series 144A 5,000 210,625
------------
BANKS -- 3.3%
CNB Capital Trust I, 6.000%, 06/30/28 40,000 1,207,500
National Australia Bank, Ltd., 7.875%,
Series UNIT 13,500 410,062
------------
1,617,562
------------
BUSINESS SERVICES -- 0.4%
Central Parking Finance Trust, 7.875%,
Series 144A 10,000 201,250
------------
CONSTRUCTION -- 2.2%
Kaufman & Broad Home Corp., 8.250%,
08/16/01 45,000 365,625
Owens Corning Capital LLC, 6.500%,
05/10/25, Series 144A 14,700 696,412
------------
1,062,037
------------
SHARES VALUE(DAGGER)
------- -------------
CONVERTIBLE PREFERRED STOCK (CONTINUED)
CONTAINERS -- 2.3%
Owens - Illinois, Inc., 4.750% 15,000 $ 656,250
Sealed Air Corp., $2.00, 04/01/18, Series A 7,500 468,750
------------
1,125,000
------------
DRUGS -- 0.3%
DECS Trust III, Inc., 8.750%, 02/15/01 17,000 167,875
------------
ELECTRIC & GAS -- 4.5%
Houston Industries, Inc., 7.000%, 07/01/00 14,000 1,669,500
Texas Utilities Co., 9.250%, 08/16/01 10,000 550,000
------------
2,219,500
------------
ELECTRONICS -- 0.9%
Merrill Lynch & Co., Inc., 7.875%, 02/01/01,
Series "CBR" STRYPES 4,750 199,500
Sensormatic Electronics Corp., 6.500%,
Series 144A* 10,000 227,500
------------
427,000
------------
FOOD & BEVERAGES -- 3.3%
Ralston Purina Co., 7.000%, 08/01/00 31,250 1,453,125
Suiza Capital Trust II, 5.500%, 04/01/28,
Series 144A 5,000 185,625
------------
1,638,750
------------
FOREST PRODUCTS & PAPER -- 0.5%
International Paper Capital Trust, 5.250% 5,000 263,125
------------
HEALTH CARE SERVICES -- 0.7%
Hybridon, Inc., 6.500%, 04/01/04, Series A 2,925 73,125
Laboratory Corp. of America, 8.500%,
06/30/12, Series A 5,000 293,125
------------
366,250
------------
HOTELS & RESTAURANTS -- 1.7%
Felcor Lodging Trust, Inc., $1.95, Series A 15,000 304,687
Innkeepers USA Trust, 8.625%, Series A 30,000 515,625
------------
820,312
------------
INSURANCE -- 4.6%
Aetna, Inc., 6.250%, 07/19/00, Class C 2,000 148,500
American General, 6.000%, 05/31/25,
Series A 9,800 916,300
American Heritage Life Investment Corp.,
8.500%, 08/15/00 2,500 165,312
Conseco Finance Trust IV, 7.000%, 02/16/01,
Series F 15,000 602,812
Philadelphia Consolidated Holding Corp.,
7.000%, 05/16/01 30,000 311,250
St. Paul Capital, Inc., 6.000%, 05/31/25 2,400 141,000
------------
2,285,174
------------
LEISURE -- 0.5%
Mattel, Inc., $.4125, 07/01/00, Series C 24,000 240,000
------------
See Notes to Financial Statements
33
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- -------------
CONVERTIBLE PREFERRED STOCK (CONTINUED)
MEDIA -- 2.6%
Chancellor Media Corp., $3.00 5,000 $ 550,000
Merrill Lynch & Co., Inc., 6.250%, 07/01/01,
Series "I.G.L." STRYPES 16,800 343,350
Sinclair Broadcasting Group, Inc., 6.000% 9,500 412,062
------------
1,305,412
------------
MISCELLANEOUS FINANCE -- 5.4%
Archstone Communities Trust, $1.75,
Series A 31,700 935,150
Crescent Real Estate Equities Co., 6.750%,
Series A 10,000 171,250
Equity Residential Properties Trust, 7.250%,
Series G 20,000 476,250
Reckson Associates Realty Corp., 7.625%,
Series A 13,000 296,562
Rouse Co., $3.00, Series B 15,000 601,875
U.S. Restaurant Properties, Inc., 7.720%,
Series A 10,000 206,875
------------
2,687,962
------------
OFFICE EQUIPMENT -- 1.6%
Microsoft Corp., $2.196, 12/15/99, Series A 5,000 499,688
Morgan Stanley Dean Witter & Co., 05/30/01
"SUNW" Reset PERQS 40,000 270,000
------------
769,688
------------
OIL & GAS -- 1.6%
Weatherford International, Inc., 5.000%,
11/01/27, Series 144A 20,000 787,500
------------
RAILROADS -- 1.1%
Union Pacific Capital Trust, 6.250%,
04/01/28, Series 144A 10,000 528,750
------------
RETAIL -- 1.3%
Dollar General STRYPES Trust, 8.500%,
05/15/01 15,000 643,125
------------
TELEPHONES -- 4.3%
IXC Communications, Inc., 7.250%, 03/31/07,
Series 144A 2,041 362,022
Qualcomm Financial Trust, 5.750%, 03/01/12 5,000 1,022,500
Salomon Smith Barney Holdings, Inc.,
6.250%, 02/01/01, Series CSN 9,800 754,600
------------
2,139,122
------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $20,490,724) 21,506,019
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ------- -------------
CONVERTIBLE CORPORATE BONDS -- 42.7%
BANKS -- 0.8%
Bankatlantic Bancorp, Inc.
5.625% 12/01/07 $ 500 $ 415,625
------------
BUSINESS SERVICES -- 4.7%
Bell Atlantic Financial Services
4.250% 09/15/05 1,750 1,802,500
Berkshire Hathaway, Inc.
1.000% 12/02/01 250 541,875
------------
2,344,375
------------
CONSTRUCTION -- 1.9%
Lennar Corp.
0.000% 07/29/18 2,100 924,000
------------
DRUGS -- 3.6%
Alpharma, Inc.
5.750% 04/01/05 1,000 1,391,250
Atrix Laboratories, Inc.
7.000% 12/01/04 500 400,000
------------
1,791,250
------------
ELECTRICAL -- 0.4%
Brightpoint Lyons, Inc.
0.000% 03/11/18 750 184,688
------------
ELECTRONICS -- 10.7%
Activision, Inc.
6.750% 01/01/05 500 466,875
Atmel Corp.
0.000% 04/15/18 1,000 420,000
Candescent Technologies Corp.,
Series 144A
7.000% 05/01/03 300 265,500
Gilat Satellite Networks
6.500% 06/03/04 500 646,875
Kent Electronics Corp.
4.500% 09/01/04 475 410,281
Mascotech, Inc.
4.500% 12/15/03 500 400,000
MRV Communications, Inc.
5.000% 06/15/03 1,000 716,250
Quantum Corp.
7.000% 08/01/04 225 214,875
Solectron Corp.
0.000% 01/27/19 250 145,313
Solectron Corp., Series 144A
0.000% 01/27/19 1,000 582,500
Technomatix Technologies, Ltd.
5.250% 08/15/04 630 442,575
VLSI Technology, Inc.
8.250% 10/01/05 250 252,188
World Access, Inc.
4.500% 10/01/02 500 338,750
------------
5,301,982
------------
See Notes to Financial Statements
34
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ------- -------------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
HEALTH CARE SERVICES -- 2.9%
Alza Corp.
5.000% 05/01/06 $ 490 $ 673,138
Concentra Managed Care, Inc.
4.500% 03/15/03 300 283,500
NCS Healthcare, Inc.
5.750% 08/15/04 250 117,813
Wellpoint Health Networks, Inc.
0.000% 07/02/19 500 353,750
------------
1,428,201
------------
HOTELS & RESTAURANTS -- 0.2%
Capstar Hotel Corp.
4.750% 10/15/04 100 77,625
------------
INSURANCE -- 3.2%
American International Group, Inc.
2.250% 07/30/04 975 1,355,250
Loews Corp.
3.125% 09/15/07 250 202,188
------------
1,557,438
------------
LEISURE -- 0.4%
Family Golf Centers, Inc.
5.750% 10/15/04 300 184,500
------------
MACHINERY & EQUIPMENT -- 0.3%
Halter Marine Group, Inc., Series 144A
4.500% 09/15/04 200 129,000
------------
MEDIA -- 1.6%
Omnicom Group, Inc.
4.250% 01/03/07 330 815,100
------------
MISCELLANEOUS FINANCE -- 1.0%
Goldman Sachs Group, Inc.
2.000% 07/01/06 500 508,750
------------
OIL & GAS -- 1.0%
PennzEnergy Co.
4.900% 08/15/08 500 515,625
------------
POLLUTION CONTROL -- 1.4%
Waste Management, Inc.
4.000% 02/01/02 500 668,125
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ------- -------------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
RETAIL -- 3.9%
Costco Cos., Inc.
0.000% 08/19/17 $1,000 $ 915,000
Home Depot, Inc.
3.250% 10/01/01 100 278,500
Rite Aid Corp.
5.250% 09/15/02 250 252,813
Rite Aid Corp., Series 144A
5.250% 09/15/02 500 505,625
------------
1,951,938
------------
TELEPHONES -- 4.7%
Clear Channel Communications, Inc.
2.625% 04/01/03 500 633,750
Tel-Save Holdings, Inc.
5.000% 12/15/04 500 339,375
Telefonica Europe BV
2.000% 07/15/02 500 825,000
U.S. Cellular Corp.
0.000% 06/13/15 1,000 515,000
------------
2,313,125
------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $19,934,322) 21,111,347
------------
SHARES
--------
RIGHTS & WARRANTS -- 0.0%
Healthcare Financial Partners, Inc.,
Series 144A 5,000 0
Hybridon, Inc. Class A 17,206 4,302
------------
TOTAL RIGHTS & WARRANTS
(Cost $0) 4,302
------------
TEMPORARY INVESTMENTS -- 5.3%
Dreyfus Cash Management Plus #719 893,153 893,153
Goldman Sachs Financial Square Money
Market Portfolio 918,154 918,154
J.P. Morgan Institutional Prime Money
Market Portfolio 835,374 835,374
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $2,646,681) 2,646,681
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $46,340,302) $49,455,862
============
- -----------------------
(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
CONVERTIBLE SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $46,340,302) ................... $49,455,862
Collateral receivable for securities loaned ............... 2,104,855
Dividends receivable ...................................... 72,130
Interest receivable ....................................... 193,208
Receivable for capital stock sold ......................... 7,814
Other assets .............................................. 28,301
-----------
Total assets ....................................... 51,862,170
-----------
LIABILITIES
Payable upon return of securities loaned .................. 2,104,855
Payable for securities purchased .......................... 835,825
Payable for capital stock redeemed ........................ 56,342
Accrued expenses .......................................... 33,887
-----------
Total liabilities .................................. 3,030,909
-----------
NET ASSETS
Applicable to 1,863,018 Institutional Shares and 16,110
N Shares of beneficial interest outstanding, $.001 par
value (Note 7) ............................................. $48,831,261
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($48,412,653/1,863,018) ................................... $25.99
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($418,608/16,110) ......................................... $25.98
======
See Notes to Financial Statements
36
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- -------------
COMMON STOCK -- 99.2%
AEROSPACE -- 4.4%
Cordant Technologies, Inc. 175,350 $ 7,923,628
Litton Industries, Inc.* 385,575 27,665,006
------------
35,588,634
------------
AIR TRANSPORT -- 0.8%
Delta Air Lines, Inc. 116,000 6,684,500
------------
ALCOHOLIC BEVERAGES & TOBACCO -- 0.8%
Philip Morris Cos., Inc. 165,900 6,667,106
------------
APPAREL, TEXTILES -- 2.4%
Shaw Industries, Inc.* 755,400 12,464,100
VF Corp. 174,400 7,455,600
------------
19,919,700
------------
AUTOS -- 4.6%
Ford Motor Co. 390,600 22,044,487
General Motors Corp. 241,400 15,932,400
------------
37,976,887
------------
BANKS -- 4.9%
Chase Manhattan Corp. 338,060 29,284,447
Southtrust Corp. 273,450 10,476,553
------------
39,761,000
------------
BUSINESS SERVICES -- 3.7%
Computer Sciences Corp.* 91,400 6,323,737
Oracle Corp.* 179,200 6,652,800
Reynolds & Reynolds Co. Class A 200,500 4,674,156
Viad Corp. 398,000 12,313,125
------------
29,963,818
------------
CASINOS -- 0.9%
Mandalay Resort Group* 367,700 7,767,662
------------
CONSTRUCTION -- 1.9%
Centex Corp. 412,900 15,509,556
------------
DRUGS -- 3.9%
Amgen, Inc.* 54,700 3,326,444
Bergen Brunswig Corp. Class A 682,233 11,768,519
Bristol-Myers Squibb Co. 84,500 5,951,969
McKesson HBOC, Inc. 245,166 7,875,958
Mylan Laboratories, Inc. 123,700 3,278,050
------------
32,200,940
------------
ELECTRIC & GAS -- 3.4%
Columbia Energy Group 138,600 8,688,487
Energy East Corp. 562,900 14,635,400
Reliant Energy, Inc. 162,800 4,497,350
------------
27,821,237
------------
ELECTRONICS -- 2.8%
Intel Corp. 319,200 18,972,450
Micron Technology, Inc.* 88,100 3,551,531
------------
22,523,981
------------
SHARES VALUE(DAGGER)
------- -------------
COMMON STOCK -- (CONTINUED)
FOOD & BEVERAGES -- 2.3%
Dean Foods Co. 134,000 $ 5,569,375
IBP, Inc. 129,400 3,073,250
Smithfield Foods, Inc.* 296,700 9,828,187
------------
18,470,812
------------
FOREST PRODUCTS & PAPER -- 2.7%
Georgia Pacific Corp. 275,600 13,056,550
Weyerhaeuser Co. 126,000 8,662,500
------------
21,719,050
------------
HEALTH CARE SERVICES -- 2.5%
AmeriSource Health Corp. Class A* 205,100 5,230,050
Covance, Inc.* 320,500 7,671,969
Wellpoint Health Networks, Inc.* 84,700 7,188,912
------------
20,090,931
------------
HOTELS & RESTAURANTS -- 4.3%
Brinker International, Inc.* 146,100 3,972,094
Darden Restaurants, Inc. 676,525 14,756,702
Outback Steakhouse, Inc.* 426,700 16,694,637
------------
35,423,433
------------
INSURANCE -- 8.5%
Allstate Corp. 612,600 21,977,025
Cigna Corp. 305,950 27,229,550
Conseco, Inc. 123,300 3,752,944
Equitable Cos., Inc. 240,400 16,106,800
------------
69,066,319
------------
MACHINERY & EQUIPMENT -- 1.6%
Applied Materials, Inc.* 172,900 12,772,988
------------
MEDIA -- 0.9%
R.R. Donnelley & Sons Co. 199,500 7,393,969
------------
METALS -- 1.1%
Alcoa, Inc. 143,800 8,897,625
------------
MISCELLANEOUS FINANCE -- 3.9%
Countrywide Credit Industries, Inc. 85,000 3,633,750
Lehman Brothers Holdings, Inc. 165,000 10,271,250
Morgan Stanley Dean Witter & Co. 116,800 11,972,000
PaineWebber Group, Inc. 125,200 5,853,100
------------
31,730,100
------------
OFFICE EQUIPMENT -- 10.3%
Compaq Computer Corp. 420,100 9,951,119
Dell Computer, Inc.* 92,600 3,420,413
International Business Machines Corp. 251,400 32,493,450
Lexmark International Group, Inc. Class A* 352,400 23,280,425
Quantum Corp.* 220,300 5,287,200
Tech Data Corp.* 259,200 9,898,200
------------
84,330,807
------------
See Notes to Financial Statements
37
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK -- (CONTINUED)
OIL & GAS -- 5.5%
Coastal Corp. 644,500 $ 25,780,000
Mobil Corp. 63,600 6,296,400
Sunoco, Inc. 420,500 12,693,844
------------
44,770,244
------------
RETAIL -- 5.5%
BJ's Wholesale Club, Inc.* 540,300 16,242,769
Dayton Hudson Corp. 132,700 8,625,500
Intimate Brands, Inc. Class A 258,300 12,236,963
Ross Stores, Inc. 148,900 7,472,919
------------
44,578,151
------------
RETAIL-FOOD -- 3.6%
Kroger Co.* 588,800 16,449,600
Safeway, Inc.* 268,800 13,305,600
------------
29,755,200
------------
TELEPHONES -- 10.8%
AT&T Corp. 531,200 29,647,600
Bell Atlantic Corp. 195,600 12,787,350
GTE Corp. 192,000 14,544,000
SBC Communications, Inc. 112,524 6,526,392
Sprint Corp. (FON Group) 184,700 9,754,469
Telefonos de Mexico S.A. ADR 61,375 4,959,867
US West, Inc. 177,300 10,416,375
------------
88,636,053
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK -- (CONTINUED)
THRIFT INSTITUTIONS -- 1.2%
Dime Bancorp, Inc. 494,700 $ 9,955,838
------------
TOTAL COMMON STOCK
(Cost $655,254,550) 809,976,541
------------
TEMPORARY INVESTMENTS -- 0.8%
Dreyfus Cash Management Plus #719 2,106,144 2,106,144
Goldman Sachs Financial Square
Money Market Portfolio 2,067,021 2,067,021
J.P. Morgan Institutional Prime
Money Market Portfolio 2,106,179 2,106,179
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $6,279,344) 6,279,344
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $661,533,894) $816,255,885
============
- --------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depository Receipt.
See Notes to Financial Statements
38
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $661,533,894) .................. $816,255,885
Collateral receivable for securities loaned. .............. 50,390,600
Dividends receivable. ..................................... 746,294
Interest receivable. ...................................... 31,903
Receivable for capital stock sold ......................... 215,248
Other assets .............................................. 36,205
------------
Total assets ....................................... 867,676,135
------------
LIABILITIES
Payable upon return of securities loaned .................. 50,390,600
Payable for capital stock redeemed ........................ 2,359,431
Accrued expenses .......................................... 604,912
------------
Total liabilities .................................. 53,354,943
------------
NET ASSETS
Applicable to 45,080,329 Institutional Shares,
1,586,011 N Shares and 5,560 A Shares outstanding,
$.001 par value; 200,000,000 authorized shares
(Note 7) .................................................. $814,321,192
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($786,553,060/45,080,329) ................................. $17.45
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER N SHARE
($27,671,127/1,586,011) ................................... $17.45
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($97,005/5,560) ........................................... $17.45
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($17.45/0.945) (Note 5) ................................... $18.47
======
See Notes to Financial Statements
39
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK -- 93.1%
AEROSPACE -- 4.7%
Cordant Technologies, Inc. 7,100 $ 320,831
Northrop Grumman Holdings Corp. 12,600 835,537
Rockwell International Corp. 18,800 1,142,100
Textron, Inc. 3,100 255,169
United Technologies Corp. 16,400 1,175,675
------------
3,729,312
------------
AIR TRANSPORT -- 2.7%
AMR Corp.* 17,900 1,221,675
Delta Air Lines, Inc. 6,400 368,800
UAL Corp.* 8,500 552,500
------------
2,142,975
------------
ALCOHOLIC BEVERAGES & TOBACCO-- 1.4%
Philip Morris Cos., Inc. 28,100 1,129,269
------------
AUTO RELATED -- 0.1%
Delphi Automotive Systems Corp. 2,795 51,882
------------
AUTOS -- 2.8%
Ford Motor Co. 34,000 1,918,875
General Motors Corp. 4,000 264,000
------------
2,182,875
------------
BANKS -- 8.7%
Bank One Corp. 17,267 1,028,466
Chase Manhattan Corp. 30,200 2,616,075
Fleet Financial Group, Inc. 32,400 1,437,750
Keycorp 20,200 648,925
Mellon Bank Corp. 29,800 1,083,975
------------
6,815,191
------------
BUSINESS SERVICES -- 0.5%
Oracle Corp.* 10,000 371,250
------------
CHEMICALS -- 0.6%
Dow Chemical Co. 3,500 444,062
------------
CONSTRUCTION -- 2.9%
Armstrong World Industries, Inc. 5,400 312,187
Centex Corp. 24,200 909,012
USG Corp. 18,400 1,030,400
------------
2,251,599
------------
DRUGS -- 8.3%
American Home Products Corp. 5,100 293,250
Amgen, Inc.* 14,700 893,944
Bristol-Myers Squibb Co. 38,500 2,711,844
McKesson HBOC, Inc. 10,500 337,312
Pfizer, Inc. 9,200 1,009,700
Schering Plough Corp. 9,900 524,700
Warner-Lambert Co. 11,100 770,062
------------
6,540,812
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
ELECTRIC & GAS -- 4.4%
DTE Energy Co. 18,400 $ 736,000
Energy East Corp. 18,000 468,000
Entergy Corp. 18,100 565,625
GPU, Inc. 10,400 438,750
New Century Energies, Inc. 7,900 306,619
PECO Energy Co. 12,100 506,687
Unicom Corp. 11,900 458,894
------------
3,480,575
------------
ELECTRICAL -- 0.7%
General Electric Co. 2,400 271,200
Honeywell, Inc. 2,300 266,512
------------
537,712
------------
ELECTRONICS -- 2.5%
Arrow Electronics, Inc.* 38,000 722,000
Lucent Technologies, Inc. 18,400 1,240,850
------------
1,962,850
------------
FOREST PRODUCTS & PAPER -- 1.1%
Georgia Pacific Corp. 9,300 440,587
Georgia Pacific Timber Group 16,500 416,625
------------
857,212
------------
HEALTH CARE SERVICES -- 1.2%
Medtronic, Inc. 12,132 944,780
------------
INSURANCE -- 5.7%
Cigna Corp. 26,300 2,340,700
Conseco, Inc. 21,500 654,406
Lincoln National Corp. 7,000 366,188
Providian Financial Corp. 11,850 1,107,975
------------
4,469,269
------------
MACHINERY & EQUIPMENT -- 0.4%
Deere & Co. 8,200 324,925
------------
METALS -- 1.8%
Alcoa, Inc. 7,100 439,313
USX-U.S. Steel Group, Inc. 37,100 1,001,700
------------
1,441,013
------------
MISCELLANEOUS FINANCE -- 3.9%
Capital One Financial Corp. 22,200 1,236,263
Charles Schwab Corp. 5,300 582,338
Merrill Lynch & Co., Inc. 8,200 655,488
SLM Holding Corp. 13,000 595,563
------------
3,069,652
------------
See Notes to Financial Statements
40
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
OFFICE EQUIPMENT -- 12.4%
Compaq Computer Corp. 24,900 $ 589,819
Dell Computer, Inc.* 52,400 1,935,525
EMC Corp.* 10,000 550,000
International Business Machines Corp. 16,400 2,119,700
Lexmark International Group, Inc. Class A* 22,000 1,453,375
Microsoft Corp.* 25,000 2,253,125
Sun Microsystems, Inc.* 12,800 881,600
------------
9,783,144
------------
OIL & GAS -- 6.1%
Atlantic Richfield Co. 7,600 635,075
Exxon Corp. 29,900 2,306,038
Phillips Petroleum Co. 18,000 905,625
Sunoco, Inc. 32,055 967,660
------------
4,814,398
------------
RETAIL -- 8.0%
American Eagle Outfitters, Inc.* 11,600 527,800
BJ's Wholesale Club, Inc.* 21,900 658,369
Dayton Hudson Corp. 26,900 1,748,500
Family Dollar Stores, Inc. 19,000 456,000
Gap, Inc. 26,025 1,311,009
Lowe's Cos., Inc. 14,300 810,631
Wal-Mart Stores, Inc. 15,400 743,050
------------
6,255,359
------------
RETAIL - FOOD -- 0.7%
Safeway, Inc.* 10,800 534,600
------------
TELEPHONES -- 10.3%
Ameritech Corp. 12,400 911,400
AT&T Corp. 34,800 1,942,275
BCE, Inc. 12,500 616,406
Bell Atlantic Corp. 29,596 1,934,839
British Telecommunications P.L.C. ADR 3,500 599,375
GTE Corp. 11,600 878,700
US West, Inc. 20,800 1,222,000
------------
8,104,995
------------
THRIFT INSTITUTIONS -- 1.2%
Washington Mutual, Inc. 26,250 928,594
------------
TOTAL COMMON STOCK
(Cost $47,386,305) 73,168,305
------------
SHARES VALUE(DAGGER)
------- ------------
TEMPORARY INVESTMENTS -- 6.9%
Dreyfus Cash Management Plus #719 1,830,047 $ 1,830,047
Goldman Sachs Financial Square Money
Market Portfolio 1,823,541 1,823,541
J.P. Morgan Institutional Prime Money
Market Portfolio 1,809,755 1,809,755
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $5,463,343) 5,463,343
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $52,849,648) $78,631,648
============
- --------------------
(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
EQUITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $52,849,648) ................... $78,631,648
Collateral receivable for securities loaned ............... 7,609,400
Dividends receivable ...................................... 88,199
Interest receivable ....................................... 23,108
Receivable for capital stock sold ......................... 196,593
Other assets .............................................. 26,548
-----------
Total assets ....................................... 86,575,496
-----------
LIABILITIES
Payable upon return of securities loaned .................. 7,609,400
Payable for securities purchased .......................... 1,774,769
Payable for capital stock redeemed ........................ 38,773
Accrued expenses .......................................... 51,392
-----------
Total liabilities .................................. 9,474,334
-----------
NET ASSETS
Applicable to 3,451,591 Institutional Shares,
237,521 N Shares and 12,492 A Shares of
beneficial interest outstanding, $.001 par
value (Note 7) ............................................ $77,101,162
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($71,893,822/3,451,591) ................................... $20.83
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER N SHARE
($4,947,164/237,521) ...................................... $20.83
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($260,176/12,492) ......................................... $20.83
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($20.83/0.945) (Note 5) ................................... $22.04
======
See Notes to Financial Statements
42
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK -- 98.3%
AEROSPACE -- 3.0%
Textron, Inc. 20,000 $ 1,646,250
United Technologies Corp. 52,320 3,750,690
------------
5,396,940
------------
AIR TRANSPORT -- 1.3%
Southwest Airlines Co. 75,750 2,357,719
------------
ALCOHOLIC BEVERAGES & TOBACCO-- 1.0%
Philip Morris Cos., Inc. 45,000 1,808,437
------------
APPAREL, TEXTILES -- 2.6%
Jones Apparel Group, Inc.* 50,000 1,715,625
Shaw Industries, Inc.* 75,000 1,237,500
Warnaco Group, Inc. Class A 60,000 1,605,000
------------
4,558,125
------------
BANKS -- 5.2%
BankBoston Corp. 24,200 1,237,225
Chase Manhattan Corp. 33,000 2,858,625
Citigroup, Inc. 52,498 2,493,655
Southtrust Corp. 37,500 1,436,719
State Street Corp. 15,000 1,280,625
------------
9,306,849
------------
BUSINESS SERVICES -- 3.2%
Adaptec, Inc.* 45,000 1,586,250
Computer Sciences Corp.* 20,000 1,383,750
Oracle Corp.* 50,000 1,856,250
Sterling Software, Inc.* 36,000 960,750
------------
5,787,000
------------
COSMETICS & SOAP -- 1.1%
Clorox Co. 10,700 1,142,894
Procter & Gamble Co. 10,000 892,500
------------
2,035,394
------------
DRUGS -- 11.8%
Abbott Laboratories, Inc. 40,664 1,850,212
American Home Products Corp. 25,000 1,437,500
Amgen, Inc.* 40,000 2,432,500
Bergen Brunswig Corp. Class A 115,900 1,999,275
Bristol-Myers Squibb Co. 54,000 3,803,625
McKesson HBOC, Inc. 35,000 1,124,375
Merck & Co., Inc. 12,000 888,000
Pfizer, Inc. 15,000 1,646,250
Schering Plough Corp. 110,000 5,830,000
------------
21,011,737
------------
ELECTRICAL -- 1.7%
General Electric Co. 27,000 3,051,000
------------
ELECTRONICS -- 6.5%
America Online, Inc.* 20,000 2,210,000
Gateway, Inc.* 20,000 1,180,000
Intel Corp. 65,000 3,863,437
Lucent Technologies, Inc. 64,156 4,326,520
------------
11,579,957
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
FOOD & BEVERAGES -- 4.1%
Dean Foods Co. 50,000 $ 2,078,125
Quaker Oats Co. 50,000 3,318,750
Sara Lee Corp. 85,000 1,928,437
------------
7,325,312
------------
FOREST PRODUCTS & PAPER -- 1.0%
Weyerhaeuser Co. 25,000 1,718,750
------------
HEALTH CARE SERVICES -- 1.8%
AmeriSource Health Corp. Class A* 75,000 1,912,500
Medtronic, Inc. 17,017 1,325,199
------------
3,237,699
------------
HOUSEHOLD GOODS -- 1.2%
Maytag Corp. 30,000 2,090,625
------------
INSURANCE -- 5.6%
AMBAC Financial Group, Inc. 50,000 2,856,250
American International Group, Inc. 40,722 4,767,019
Providian Financial Corp. 13,000 1,215,500
Reliastar Financial Corp. 25,000 1,093,750
------------
9,932,519
------------
MACHINERY & EQUIPMENT -- 4.6%
Applied Materials, Inc.* 56,000 4,137,000
ITT Industries, Inc. 31,854 1,214,434
Tyco International, Ltd. 30,000 2,842,500
------------
8,193,934
------------
MISCELLANEOUS FINANCE -- 5.9%
Bear Stearns Cos., Inc. 23,100 1,079,925
Countrywide Credit Industries, Inc. 29,275 1,251,506
Federal National Mortgage Association 60,000 4,102,500
Morgan Stanley Dean Witter & Co. 40,000 4,100,000
------------
10,533,931
------------
OFFICE EQUIPMENT -- 15.3%
BMC Software, Inc.* 34,000 1,833,875
Cisco Systems, Inc.* 55,500 3,576,281
Compaq Computer Corp. 60,500 1,433,094
Dell Computer, Inc.* 40,000 1,477,500
Hewlett Packard Co. 15,000 1,507,500
International Business Machines Corp. 26,000 3,360,500
Lexmark International Group, Inc. Class A* 50,000 3,303,125
Microsoft Corp.* 76,000 6,849,500
Sun Microsystems, Inc.* 36,000 2,479,500
Xerox Corp. 25,000 1,476,563
------------
27,297,438
------------
OIL & GAS -- 2.2%
Coastal Corp. 100,000 4,000,000
------------
See Notes to Financial Statements
43
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
RETAIL -- 7.8%
Dayton Hudson Corp. 56,000 $ 3,640,000
Family Dollar Stores, Inc. 50,000 1,200,000
Federated Department Stores, Inc.* 50,000 2,646,875
Gap, Inc. 37,500 1,889,062
Sears, Roebuck & Co. 35,000 1,559,688
TJX Cos., Inc. 91,000 3,031,438
------------
13,967,063
------------
RETAIL - FOOD -- 2.3%
Safeway, Inc.* 81,600 4,039,200
------------
TELEPHONES -- 7.3%
Ameritech Corp. 50,000 3,675,000
AT&T Corp. 97,500 5,441,719
GTE Corp. 25,000 1,893,750
SBC Communications, Inc. 35,000 2,030,000
------------
13,040,469
------------
THRIFT INSTITUTIONS -- 1.1%
Washington Mutual, Inc. 55,000 1,945,625
------------
TRUCKING -- 0.7%
Ryder System, Inc. 50,000 1,300,000
------------
TOTAL COMMON STOCK
(Cost $107,703,805) 175,515,723
------------
TEMPORARY INVESTMENTS -- 1.7%
Dreyfus Cash Management Plus #719 945,797 945,797
Goldman Sachs Financial Square
Money Market Portfolio 961,847 961,847
J.P. Morgan Institutional Prime
Money Market Portfolio 1,180,288 1,180,288
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,087,932) 3,087,932
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $110,791,737) $178,603,655
============
- ---------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements
44
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $110,791,737) .................. $178,603,655
Collateral receivable for securities loaned ............... 17,441,000
Dividends receivable ...................................... 149,524
Interest receivable ....................................... 17,114
Receivable for capital stock sold ......................... 726,937
Other assets .............................................. 28,392
------------
Total assets ....................................... 196,966,622
------------
LIABILITIES
Payable upon return of securities loaned .................. 17,441,000
Payable for capital stock redeemed ........................ 117,480
Accrued expenses .......................................... 150,264
------------
Total liabilities .................................. 17,708,744
------------
NET ASSETS
Applicable to 5,952,027 Institutional Shares,
308,237 N Shares and 15,866 A Shares of
beneficial interest outstanding, $.001 par
value (Note 7) ............................................ $179,257,878
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($170,035,664/5,952,027) .................................. $28.57
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER N SHARE
($8,770,929/308,237) ...................................... $28.46
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($451,285/15,866) ......................................... $28.44
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($28.44/0.945) (Note 5) ................................... $30.10
======
See Notes to Financial Statements
45
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK -- 96.4%
AEROSPACE -- 2.6%
Cordant Technologies, Inc. 81,900 $ 3,700,856
Kellstrom Industries, Inc.* 19,500 355,875
Midwest Express Holdings, Inc.* 134,100 4,559,400
------------
8,616,131
------------
AIR TRANSPORT -- 1.1%
Comair Holdings, Inc. 76,800 1,593,600
Expeditors International of
Washington, Inc. 71,600 1,951,100
------------
3,544,700
------------
APPAREL, TEXTILES -- 2.1%
Fossil, Inc.* 37,650 1,811,906
Mohawk Industries, Inc.* 41,000 1,245,375
Quiksilver, Inc.* 155,150 4,043,597
------------
7,100,878
------------
AUTO RELATED -- 0.6%
Coach USA, Inc.* 51,200 2,147,200
------------
AUTOS -- 0.9%
Monaco Coach Corp.* 30,700 1,298,994
Navistar International Corp.* 33,600 1,680,000
------------
2,978,994
------------
BANKS -- 6.1%
Centura Banks, Inc. 20,500 1,155,687
City National Corp. 10,200 381,862
Commerce Bancshares, Inc. 86,424 3,473,164
Compass Bancshares, Inc. 38,400 1,046,400
Doral Financial Corp. 181,600 3,121,250
Keystone Financial, Inc. 10,200 300,900
North Fork Bancorp, Inc. 92,100 1,962,881
Old Kent Financial Corp. 118,487 4,961,654
Provident Bankshares Corp. 56,490 1,309,862
U.S. Bancorp, Inc. 30,700 472,012
Westamerica Bancorp 34,100 1,242,519
Zions Bancorp 15,400 977,900
------------
20,406,091
------------
BUSINESS SERVICES -- 8.5%
Abacus Direct Corp.* 22,000 1,978,625
Advantage Learning Systems, Inc.* 12,500 271,875
AHL Services, Inc.* 51,200 1,267,200
C.H. Robinson Worldwide, Inc. 41,000 1,496,500
Ciber, Inc.* 102,400 1,958,400
Factset Research Systems, Inc. 66,650 3,774,056
G. & K. Services, Inc. Class A 29,300 1,532,756
Gartner Group, Inc. Class A* 41,000 840,500
International Network Services* 38,400 1,545,600
Mastech Corp.* 41,000 758,500
Merrill Corp. 65,500 908,812
Metamor Worldwide, Inc.* 74,700 1,788,131
Metzler Group, Inc.* 18,400 507,150
MindSpring Enterprises, Inc.* 10,000 443,125
National Computer Systems, Inc. 51,200 1,724,800
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
BUSINESS SERVICES (CONTINUED)
NationsRent, Inc.* 40,619 $ 289,410
NCO Group, Inc.* 135,000 5,096,250
On Assignment, Inc.* 25,600 665,600
Prison Realty Trust, Inc. 35,875 352,023
Shared Medical Systems Corp. 18,400 1,200,600
------------
28,399,913
------------
CHEMICALS -- 0.8%
MacDermid, Inc. 22,500 1,046,250
Tredegar Corp. 20,000 435,000
Valspar Corp. 35,800 1,360,400
------------
2,841,650
------------
CONSTRUCTION -- 6.9%
Centex Construction Products, Inc. 28,200 962,325
Champion Enterprises, Inc.* 51,200 953,600
D.R. Horton, Inc. 89,600 1,489,600
Dycom Industries, Inc.* 82,350 4,611,600
Elcor Corp. 31,700 1,384,894
Fleetwood Enterprises, Inc. 15,325 405,155
Florida Rock Industries, Inc. 25,600 1,164,800
Granite Construction, Inc. 83,200 2,438,800
Insituform Technologies, Inc. Class A* 51,200 1,097,600
Kaufman & Broad Home Corp. 202,700 5,042,162
Lennar Corp. 51,200 1,228,800
LNR Property Corp. Class B 50,000 1,068,750
M.D.C. Holdings, Inc. 25,600 550,400
Toll Brothers, Inc.* 41,000 878,937
------------
23,277,423
------------
DRUGS -- 2.5%
Bindley Western Industries, Inc. 70,044 1,615,390
IDEC Pharmaceuticals Corp.* 9,900 762,300
K V Pharmaceutical Co. Class A* 15,000 232,500
McKesson HBOC, Inc. 38,400 1,233,600
Medco Research, Inc.* 69,600 1,827,000
Roberts Pharmaceutical Corp.* 17,000 412,250
Roper Industries, Inc. 27,500 880,000
Shire Pharmaceuticals Group P.L.C. ADR* 56,300 1,449,725
------------
8,412,765
------------
ELECTRIC & GAS -- 1.2%
Calpine Corp.* 46,500 2,511,000
MDU Resources Group, Inc. 30,700 700,344
Piedmont Natural Gas Co., Inc. 30,700 955,537
------------
4,166,881
------------
ELECTRONICS -- 17.9%
Apex PC Solutions, Inc.* 76,800 1,569,600
Applied Micro Circuits Corp.* 18,400 1,531,800
C&D Technologies, Inc. 44,400 1,359,750
Cognex Corp.* 35,800 1,127,700
Dionex Corp.* 44,000 1,773,750
General Cable Corp. 107,500 1,720,000
Jabil Circuit, Inc.* 30,500 1,376,312
See Notes to Financial Statements
46
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
ELECTRONICS (CONTINUED)
Mercury Interactive Corp.* 30,800 $ 1,089,550
Micrel, Inc.* 71,700 5,305,800
Optical Coating Laboratory, Inc. 19,900 1,662,894
Plantronics, Inc.* 19,500 1,269,937
PMC-Sierra, Inc.* 204,800 12,070,400
QRS Corp.* 38,700 3,018,600
Rambus, Inc.* 9,200 847,550
RF Micro Devices, Inc.* 188,800 14,089,200
Sawtek, Inc.* 26,000 1,189,500
Vitesse Semiconductors Corp.* 133,100 9,034,162
------------
60,036,505
------------
FOOD & BEVERAGES -- 2.2%
Dean Foods Co. 91,100 3,786,344
Delta & Pine Land Co. 25,533 804,289
Earthgrains Co. 58,400 1,507,450
Flowers Industries, Inc. 23,000 498,812
Pilgrim's Pride Corp. Class B 26,600 798,000
------------
7,394,895
------------
FOREST PRODUCTS & PAPER -- 0.2%
Buckeye Technologies, Inc.* 51,200 777,600
------------
HEALTH CARE SERVICES -- 7.3%
AmeriSource Health Corp. Class A* 20,400 520,200
Dendrite International, Inc.* 65,000 2,348,125
Hanger Orthopedic Group, Inc.* 48,100 682,419
Hooper Holmes, Inc. 82,000 1,670,750
Kendle International, Inc.* 48,600 777,600
Mentor Corp. 41,600 774,800
Minimed, Inc.* 72,000 5,539,500
Patterson Dental Co.* 40,500 1,407,375
Renal Care Group, Inc.* 94,200 2,431,537
Safeskin Corp.* 104,400 1,246,275
Techne Corp.* 49,000 1,243,375
Universal Health Services, Inc. Class B* 61,400 2,931,850
Ventana Medical Systems, Inc.* 25,600 491,200
VISX, Inc.* 30,000 2,377,500
------------
24,442,506
------------
HOTELS & RESTAURANTS -- 0.7%
Brinker International, Inc.* 52,500 1,427,344
Ruby Tuesday, Inc. 41,000 779,000
------------
2,206,344
------------
HOUSEHOLD GOODS -- 2.6%
Blyth Industries, Inc.* 23,000 790,625
Ethan Allen Interiors, Inc. 61,500 2,321,625
Haverty Furniture Cos., Inc. 31,300 1,101,369
La-Z-Boy, Inc. 102,400 2,355,200
LADD Furniture, Inc.* 51,200 1,075,200
Oneida, Ltd. 21,875 615,234
Thomas Industries, Inc. 27,100 555,550
------------
8,814,803
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
INSURANCE -- 2.0%
Hartford Life, Inc. Class A 51,200 $ 2,694,400
Horace Mann Educators Corp. 17,900 486,656
Medical Assurance, Inc.* 28,160 804,320
Old Republic International Corp. 153,600 2,659,200
------------
6,644,576
------------
LEISURE -- 0.2%
Trendwest Resorts, Inc.* 24,000 529,500
------------
MACHINERY & EQUIPMENT -- 2.7%
ADC Telecommunications, Inc.* 106,100 4,827,550
Crane Co. 31,075 976,920
Graco, Inc. 20,500 602,188
IDEX Corp. 31,100 1,022,413
Scotsman Industries, Inc. 15,400 332,063
SPS Technologies, Inc.* 20,500 768,750
Terex Corp.* 22,500 684,844
------------
9,214,728
------------
MEDIA -- 4.5%
Central Newspapers, Inc. Class A 20,400 767,550
Hearst-Argyle Television, Inc.* 16,719 401,256
Outdoor Systems, Inc.* 86,375 3,152,688
Pulitzer, Inc. 10,200 495,338
TV Guide, Inc. Class A* 138,200 5,027,025
Univision Communications, Inc. Class A* 51,200 3,379,200
Westwood One, Inc.* 24,100 860,069
Wiley (John) & Sons, Inc. Class A 57,200 1,008,150
------------
15,091,276
------------
METALS -- 0.5%
Reliance Steel & Aluminum Corp. 42,000 1,638,000
------------
MISCELLANEOUS FINANCE -- 3.1%
Americredit Corp.* 137,200 2,195,200
Eaton Vance Corp. 42,000 1,446,375
Investment Technology Group, Inc. 26,166 847,124
Metris Cos., Inc. 22,884 932,523
Morgan Keegan, Inc. 43,000 814,313
Southwest Securities Group, Inc. 58,000 4,161,500
------------
10,397,035
------------
OFFICE EQUIPMENT -- 4.5%
Bea Systems, Inc.* 92,300 2,636,319
Comdisco, Inc. 115,200 2,952,000
Comverse Technology, Inc.* 30,750 2,317,781
IMRglobal Corp.* 40,275 775,294
Maxwell Technologies, Inc.* 23,000 552,000
MTS Systems Corp. 86,800 1,047,025
Network Appliance, Inc.* 63,800 3,564,825
Safeguard Scientific, Inc.* 20,500 1,271,000
------------
15,116,244
------------
OIL & GAS -- 0.4%
North Carolina Natural Gas, Inc. 38,400 1,315,200
------------
See Notes to Financial Statements
47
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
POLLUTION CONTROL -- 0.5%
Catalytica, Inc.* 25,600 $ 356,800
URS Corp.* 49,300 1,445,106
------------
1,801,906
------------
RETAIL -- 11.1%
99 Cents Only Stores* 57,150 2,853,928
AnnTaylor Stores Corp.* 38,400 1,728,000
Buckle, Inc.* 15,400 442,750
Claire's Stores, Inc. 29,000 743,125
Copart, Inc.* 82,000 1,742,500
CVS Corp. 70,172 3,587,544
Dollar Tree Stores, Inc.* 49,000 2,152,938
Goody's Family Clothing, Inc.* 92,100 1,047,638
Insight Enterprises, Inc.* 80,000 1,975,000
Linens 'N Things, Inc.* 163,800 7,166,250
Men's Wearhouse, Inc.* 102,400 2,611,200
Neiman-Marcus Group, Inc.* 48,100 1,235,569
Pacific Sunwear of California, Inc.* 84,450 2,058,469
Regis Corp. 79,050 1,511,831
Tiffany & Co., Inc. 58,300 5,625,950
Wet Seal, Inc. Class A* 36,000 1,017,000
------------
37,499,692
------------
RETAIL - FOOD -- 1.1%
Foodmaker, Inc.* 133,900 3,799,413
------------
THRIFT INSTITUTIONS -- 1.6%
Anchor Bancorp Wisconsin, Inc. 51,200 902,400
Andover Bancorp, Inc. 46,100 1,446,388
Charter One Financial, Inc. 75,951 2,107,640
Dime Bancorp, Inc. 21,500 432,688
MAF Bancorp, Inc. 23,000 556,313
------------
5,445,429
------------
TOTAL COMMON STOCK
(Cost $221,285,548) 324,058,278
------------
TEMPORARY INVESTMENTS -- 3.6%
Dreyfus Cash Management Plus #719 4,033,256 4,033,256
Goldman Sachs Financial Square
Money Market Portfolio 3,927,091 3,927,091
J.P. Morgan Institutional Prime
Money Market Portfolio 4,032,500 4,032,500
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $11,992,847) 11,992,847
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $233,278,395) $336,051,125
============
- -----------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depository Receipt.
See Notes to Financial Statements
48
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $233,278,395) .................. $336,051,125
Collateral receivable for securities loaned ............... 29,283,498
Dividends receivable ...................................... 104,577
Interest receivable ....................................... 54,838
Receivable for securities sold ............................ 1,512,848
Receivable for capital stock sold ......................... 687,611
Other assets .............................................. 26,998
------------
Total assets ....................................... 367,721,495
------------
LIABILITIES
Payable upon return of securities loaned .................. 29,283,498
Payable for capital stock redeemed ........................ 382,368
Accrued expenses .......................................... 321,905
------------
Total liabilities .................................. 29,987,771
------------
NET ASSETS
Applicable to 17,005,924 Institutional Shares,
237,080 N Shares and 983 A Shares of
beneficial interest outstanding,
$.001 par value (Note 7) .................................. $337,733,724
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($333,098,099/17,005,924) ................................. $19.59
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER N SHARE
($4,616,490/237,080) ...................................... $19.47
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($19,135/983) ............................................. $19.47
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($19.47/0.945) (Note 5) ................................... $20.60
======
See Notes to Financial Statements
49
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK -- 97.6%
AEROSPACE -- 6.1%
Alliant Techsystems, Inc.* 31,800 $ 2,750,700
Cordant Technologies, Inc. 40,000 1,807,500
Esterline Technologies Corp.* 190,600 2,739,875
Triumph Group, Inc.* 45,000 1,147,500
------------
8,445,575
------------
AIR TRANSPORT -- 1.1%
Alaska Air Group, Inc.* 29,000 1,210,750
Continental Airlines, Inc. Class B* 10,000 376,250
------------
1,587,000
------------
ALCOHOLIC BEVERAGES & TOBACCO -- 2.2%
Universal Corp. 105,600 3,003,000
------------
APPAREL, TEXTILES -- 1.4%
Dan River, Inc. Class A* 37,500 276,562
Oxford Industries, Inc. 58,800 1,664,775
------------
1,941,337
------------
AUTO RELATED -- 3.9%
Avis Rent A Car, Inc.* 56,800 1,654,300
Dollar Thrifty Automotive Group, Inc.* 162,800 3,785,100
------------
5,439,400
------------
AUTOS -- 1.8%
Navistar International Corp.* 49,200 2,460,000
------------
BANKS -- 9.9%
Compass Bancshares, Inc. 87,975 2,397,319
Doral Financial Corp. 80,300 1,380,156
Everen Capital Corp. 65,900 1,964,644
Flagstar Bancorp, Inc. 100,000 2,512,500
GBC Bancorp 111,700 2,261,925
Independent Bank Corp. 75,000 1,148,437
One Valley Bancorp 19,675 737,812
Provident Bankshares Corp. 55,230 1,280,646
------------
13,683,439
------------
BUSINESS SERVICES -- 2.0%
Franklin Covey Co.* 1 7
Kelly Services, Inc. Class A 85,200 2,726,400
------------
2,726,407
------------
CASINOS -- 2.4%
Anchor Gaming* 68,100 3,273,056
------------
CHEMICALS -- 4.7%
Albemarle Corp. 13,600 314,500
Cambrex Corp. 60,000 1,575,000
Cytec Industries, Inc.* 95,200 3,034,500
Schulman (A.), Inc. 92,500 1,572,500
------------
6,496,500
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
CONSTRUCTION -- 11.1%
Apogee Enterprises, Inc. 28,000 $ 379,750
Centex Corp. 86,800 3,260,425
Champion Enterprises, Inc.* 50,000 931,250
D.R. Horton, Inc. 26,000 432,250
Fleetwood Enterprises, Inc. 106,400 2,812,950
Vulcan Materials Co. 20,000 965,000
Webb Corp. 118,800 2,836,350
York International Corp. 85,000 3,639,062
------------
15,257,037
------------
CONTAINERS -- 0.4%
Libbey, Inc. 21,600 626,400
------------
DRUGS -- 0.6%
Priority Healthcare Corp. Class B 24,528 846,216
------------
ELECTRIC & GAS -- 10.0%
Calpine Corp.* 86,000 4,644,000
Central Hudson Gas & Electric Corp. 44,000 1,848,000
Cleco Corp. 27,400 832,275
Eastern Utilities Associates 93,200 2,714,450
OGE Energy Corp. 20,500 486,875
Public Service Co. of New Mexico 103,600 2,059,050
Washington Gas Light Corp. 47,600 1,237,600
------------
13,822,250
------------
ELECTRICAL -- 2.9%
Encore Wire Corp.* 60,000 540,000
General Semiconductor, Inc.* 232,100 2,117,912
Stoneridge, Inc.* 28,000 378,000
Technitrol, Inc. 28,700 925,575
------------
3,961,487
------------
ELECTRONICS -- 3.6%
Amkor Technology, Inc.* 30,000 305,625
C&D Technologies, Inc. 39,000 1,194,375
CHS Electronics, Inc.* 228,100 997,937
NeoMagic Corp.* 85,700 717,737
Plexus Corp.* 58,000 1,711,000
------------
4,926,674
------------
ENERGY SERVICES -- 2.6%
Atwood Oceanics, Inc.* 53,500 1,671,875
Eagle Geophysical, Inc.* 3,579 2,684
Friede Goldman International, Inc.* 26,500 367,688
Gulf Island Fabrication, Inc.* 50,000 596,875
Seitel, Inc.* 55,700 901,644
------------
3,540,766
------------
FOOD & BEVERAGES -- 0.7%
Smithfield Foods, Inc.* 30,000 993,750
------------
FOREST PRODUCTS & PAPER -- 1.1%
Buckeye Technologies, Inc.* 104,300 1,584,056
------------
See Notes to Financial Statements
50
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
HEALTH CARE SERVICES -- 4.8%
AmeriPath, Inc.* 54,400 $ 465,800
Curative Health Services, Inc.* 180,000 990,000
Datascope Corp.* 37,700 1,211,113
Hanger Orthopedic Group, Inc.* 33,000 468,188
Lincare Holdings, Inc.* 55,100 1,377,500
Pediatrix Medical Group, Inc.* 33,800 718,250
Thermoquest Corp.* 102,100 1,359,206
------------
6,590,057
------------
HOTELS & RESTAURANTS -- 1.0%
Bob Evans Farms, Inc. 25,000 495,313
Red Roof Inns, Inc.* 50,000 896,875
------------
1,392,188
------------
INSURANCE -- 9.4%
Chartwell Re Corp. 35,300 657,463
Fidelity National Financial, Inc. 45,100 947,100
First American Financial Corp. 133,750 2,390,781
Gallagher (Arthur J.) & Co. 83,000 4,108,500
LandAmerica Financial Group, Inc. 24,800 713,000
Old Republic International Corp. 140,955 2,440,283
PMI Group, Inc. 15,000 942,188
Selective Insurance Group, Inc. 42,200 801,800
------------
13,001,115
------------
MACHINERY & EQUIPMENT -- 3.0%
Gardner Denver Machinery, Inc.* 100,000 1,612,500
Gleason Corp. 68,825 1,157,120
Specialty Equipment Cos.* 45,000 1,324,688
------------
4,094,308
------------
METALS -- 1.9%
Cleveland Cliffs, Inc. 20,100 650,738
Reliance Steel & Aluminum Corp. 51,700 2,016,300
------------
2,667,038
------------
OFFICE EQUIPMENT -- 1.9%
Pomeroy Computer Resources, Inc.* 12,500 174,219
Tech Data Corp.* 62,500 2,386,719
------------
2,560,938
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
RAILROADS -- 1.8%
Varlen Corp. 62,900 $ 2,523,863
------------
RETAIL -- 4.4%
Media Arts Group, Inc.* 64,200 280,875
Musicland Stores Corp.* 204,100 1,811,388
Nature's Sunshine Products, Inc. 55,000 584,375
Sola International, Inc.* 35,200 684,200
Wet Seal, Inc. Class A* 95,000 2,683,750
------------
6,044,588
------------
THRIFT INSTITUTIONS -- 0.5%
Washington Federal, Inc. 34,000 760,750
------------
TRUCKING -- 0.4%
USFreightways Corp. 12,000 552,000
------------
TOTAL COMMON STOCK
(Cost $128,386,884) 134,801,195
------------
TEMPORARY INVESTMENTS -- 2.4%
Dreyfus Cash Management Plus #719 1,091,762 1,091,762
Goldman Sachs Financial Square
Money Market Portfolio 1,091,203 1,091,203
J.P. Morgan Institutional Prime
Money Market Portfolio 1,090,342 1,090,342
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,273,307) 3,273,307
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $131,660,191) $138,074,502
============
- -------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements
51
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $131,660,191) .................. $138,074,502
Collateral receivable for securities loaned ............... 8,555,345
Dividends receivable ...................................... 98,312
Interest receivable ....................................... 8,659
Receivable for securities sold ............................ 33,102
Receivable for capital stock sold ......................... 28,084
Other assets .............................................. 26,582
------------
Total assets ....................................... 146,824,586
------------
LIABILITIES
Payable upon return of securities loaned .................. 8,555,345
Payable for securities purchased .......................... 1,504,446
Payable for capital stock redeemed ........................ 821,585
Accrued expenses .......................................... 104,534
------------
Total liabilities .................................. 10,985,910
------------
NET ASSETS
Applicable to 4,431,191 Institutional Shares and
20,911 N Shares of beneficial interest
outstanding, $.001 par value (Note 7) ..................... $135,838,676
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($135,201,548/4,431,191) .................................. $30.51
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER N SHARE
($637,128/20,911) ......................................... $30.47
======
See Notes to Financial Statements
52
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK -- 95.8%
AEROSPACE -- 1.7%
Allegheny Teledyne, Inc. 8,395 $ 189,937
Allied Signal, Inc. 24,400 1,537,200
B.F. Goodrich Co. 3,200 136,000
Boeing Co. 42,892 1,895,290
E.G. & G., Inc. 1,900 67,687
General Dynamics Corp. 5,400 369,900
Lockheed Martin Corp. 16,842 627,364
Northrop Grumman Holdings Corp. 3,000 198,937
Raytheon Co. Class A 1,842 126,868
Raytheon Co. Class B 12,900 907,837
Rockwell International Corp. 8,200 498,150
Textron, Inc. 6,800 559,725
United Technologies Corp. 21,100 1,512,606
------------
8,627,501
------------
AIR TRANSPORT -- 0.3%
AMR Corp.* 6,800 464,100
Delta Air Lines, Inc. 6,100 351,512
Southwest Airlines Co. 14,425 448,978
U.S. Airways Group, Inc.* 3,600 156,825
------------
1,421,415
------------
ALCOHOLIC BEVERAGES & TOBACCO-- 1.5%
Anheuser-Busch Cos., Inc. 20,900 1,482,594
Brown-Forman Corp. Class B 2,700 176,006
Coors Adolph Co. Class B 1,600 79,200
Fortune Brands, Inc. 7,400 306,175
Philip Morris Cos., Inc. 105,300 4,231,744
R.J. Reynolds Tobacco Holdings, Inc.* 3,266 102,879
Seagram Co., Ltd. 18,800 947,050
UST, Inc. 8,000 234,000
------------
7,559,648
------------
APPAREL, TEXTILES -- 0.2%
Fruit of the Loom, Inc. Class A* 2,700 26,325
Liz Claiborne, Inc. 2,500 91,250
Nike, Inc. Class B 12,100 766,081
Reebok International, Ltd.* 2,200 40,975
Russell Corp. 1,600 31,200
Springs Industries, Inc. Class A 800 34,900
VF Corp. 5,200 222,300
------------
1,213,031
------------
AUTO RELATED -- 0.4%
Cooper Tire & Rubber Co. 2,300 54,337
Dana Corp. 7,158 329,715
Delphi Automotive Systems Corp. 24,293 450,939
Eaton Corp. 3,100 285,200
Genuine Parts Co. 7,725 270,375
Goodyear Tire & Rubber Co. 6,700 394,044
T.R.W., Inc. 5,100 279,862
------------
2,064,472
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
AUTOS -- 1.0%
Ford Motor Co. 52,900 $ 2,985,544
General Motors Corp. 28,600 1,887,600
Navistar International Corp.* 2,700 135,000
------------
5,008,144
------------
BANKS -- 8.1%
AmSouth Bancorp. 7,800 180,862
Bank of America Corp. 76,777 5,628,714
Bank of New York Co., Inc. 33,200 1,218,025
Bank One Corp. 51,405 3,061,810
BankBoston Corp. 13,000 664,625
BB&T Corp. 13,400 491,612
Chase Manhattan Corp. 36,968 3,202,353
Citigroup, Inc. 148,038 7,031,805
Comerica, Inc. 6,750 401,203
Fifth Third Bancorp 11,650 775,453
First Union Corp. 42,226 1,984,622
Firstar Corp. 30,100 842,800
Fleet Financial Group, Inc. 24,810 1,100,944
Huntington Bancshares, Inc. 9,010 314,787
J.P. Morgan & Co., Inc. 7,600 1,067,800
Keycorp 19,912 639,673
MBNA Corp. 35,055 1,073,559
Mellon Bank Corp. 22,800 829,350
Mercantile Bancorp., Inc. 6,800 388,450
National City Corp. 14,300 936,650
Northern Trust Corp. 4,800 465,600
PNC Bank Corp. 13,100 754,887
Regions Financial Corp. 9,500 361,594
Republic New York Corp. 4,600 313,662
Southtrust Corp. 7,100 272,019
State Street Corp. 7,000 597,625
Summit Bancorp. 7,500 313,594
Suntrust Banks, Inc. 14,000 972,125
Synovus Financial Corp. 11,450 227,569
U.S. Bancorp 31,884 1,084,056
Union Planters Corp. 5,900 263,656
Wachovia Corp. 8,900 761,506
Wells Fargo Co. 71,830 3,070,732
------------
41,293,722
------------
BUSINESS SERVICES -- 2.0%
Automatic Data Processing, Inc. 26,900 1,183,600
Cendant Corp.* 33,549 687,754
Ceridian Corp.* 6,100 199,394
Computer Sciences Corp.* 6,900 477,394
Deluxe Corp. 3,500 136,281
Dun & Bradstreet Corp. 7,100 251,606
Ecolab, Inc. 5,600 244,300
Electronic Data Systems Corp. 21,500 1,216,094
FDX Corp.* 12,760 692,230
First Data Corp. 19,400 949,387
H & R Block, Inc. 4,200 210,000
Ikon Office Solutions, Inc. 6,300 94,500
Interpublic Group of Cos., Inc. 6,050 524,081
See Notes to Financial Statements
53
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
BUSINESS SERVICES (CONTINUED)
National Service Industries, Inc. 1,700 $ 61,200
Oracle Corp.* 62,880 2,334,420
Paychex, Inc. 10,550 334,962
PeopleSoft, Inc.* 10,000 172,500
Service Corp. International 11,700 225,225
Shared Medical Systems Corp. 1,200 78,300
------------
10,073,228
------------
CASINOS -- 0.0%
Harrah's Entertainment, Inc.* 5,450 119,900
Mirage Resorts, Inc.* 8,500 142,375
------------
262,275
------------
CHEMICALS -- 2.2%
Air Products & Chemicals, Inc. 9,900 398,475
Avery Dennison Corp. 5,000 301,875
Corning, Inc. 10,700 750,337
Dow Chemical Co. 9,700 1,230,687
E.I. du Pont de Nemours & Co. 49,200 3,360,975
Eastman Chemical Co. 3,400 175,950
F.M.C. Corp.* 1,400 95,637
Great Lakes Chemical Corp. 2,500 115,156
Hercules, Inc. 4,300 169,044
Minnesota Mining & Manufacturing Co. 17,600 1,530,100
Monsanto Co. 27,400 1,080,587
Nalco Chemical Co. 2,500 129,687
P.P.G. Industries, Inc. 7,600 448,875
Praxair, Inc. 6,800 332,775
Rohm & Haas Co. 9,254 396,787
Sealed Air Corp.* 2,347 152,262
Sigma Aldrich Corp. 4,300 148,081
Union Carbide Corp. 5,700 277,875
W.R. Grace & Co.* 2,700 49,612
------------
11,144,777
------------
CONSTRUCTION -- 0.3%
Armstrong World Industries, Inc. 1,800 104,062
Centex Corp. 2,600 97,662
Fleetwood Enterprises, Inc. 1,200 31,725
Fluor Corp. 3,000 121,500
Foster Wheeler Corp. 1,600 22,600
Kaufman & Broad Home Corp. 2,100 52,237
Masco Corp. 14,600 421,575
Owens Corning, Inc. 2,100 72,187
Pulte Corp. 1,600 36,900
Sherwin Williams Co. 7,400 205,350
Vulcan Materials Co. 4,300 207,475
------------
1,373,273
------------
CONTAINERS -- 0.1%
Ball Corp. 900 38,025
Bemis Co., Inc. 2,300 91,425
Crown Cork & Seal Co., Inc. 5,100 145,350
Owens-Illinois, Inc.* 6,700 219,006
------------
493,806
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
COSMETICS & SOAP -- 1.9%
Alberto-Culver Co. Class B 2,300 $ 61,237
Avon Products, Inc. 11,300 627,150
Clorox Co. 5,000 534,062
Colgate-Palmolive Co. 12,600 1,244,250
Gillette Co. 48,500 1,988,500
International Flavors & Fragrances, Inc. 4,600 204,125
Procter & Gamble Co. 58,100 5,185,425
------------
9,844,749
------------
DRUGS -- 9.0%
Abbott Laboratories, Inc. 66,300 3,016,650
Allergan, Inc. 2,900 321,900
Alza Corp.* 4,300 218,762
American Home Products Corp. 57,600 3,312,000
Amgen, Inc.* 22,300 1,356,119
Bristol-Myers Squibb Co. 86,800 6,113,975
Cardinal Health, Inc. 11,850 759,881
Eli Lilly & Co. 48,000 3,438,000
Johnson & Johnson 58,700 5,752,600
Mallinckrodt, Inc. 3,100 112,762
McKesson HBOC, Inc. 11,324 363,783
Merck & Co., Inc. 103,000 7,622,000
Pfizer, Inc. 56,500 6,200,875
Pharmacia & Upjohn, Inc. 22,180 1,260,101
Schering Plough Corp. 64,200 3,402,600
Warner-Lambert Co. 37,400 2,594,625
Watson Pharmaceuticals, Inc.* 4,100 143,756
------------
45,990,389
------------
ELECTRIC & GAS -- 2.1%
AES Corp.* 8,300 482,437
Ameren Corp. 5,900 226,412
American Electric Power Co. 8,400 315,525
Carolina Power & Light Co. 6,600 282,562
Central & South West Corp. 9,300 217,387
Cinergy Corp. 6,836 218,752
Columbia Energy Group 3,650 228,809
Consolidated Edison, Inc. 10,200 461,550
Consolidated Natural Gas Co. 4,200 255,150
Dominion Resources, Inc. 8,550 370,322
DTE Energy Co. 6,300 252,000
Duke Energy Corp. 15,861 862,442
Eastern Enterprises 800 31,800
Edison International 15,400 411,950
Entergy Corp. 10,800 337,500
F.P.L. Group, Inc. 7,900 431,537
FirstEnergy Corp. 10,400 322,400
Florida Progress Corp. 4,100 169,381
GPU, Inc. 5,500 232,031
New Century Energies, Inc. 4,900 190,181
Niagara Mohawk Holdings, Inc.* 8,200 131,712
Nicor, Inc. 2,100 79,931
Northern States Power Co. 6,600 159,637
Oneok, Inc. 1,400 44,450
P.P.& L. Resources, Inc. 6,600 202,950
Pacificorp 12,800 235,200
See Notes to Financial Statements
54
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
ELECTRIC & GAS (CONTINUED)
PECO Energy Co. 8,400 $ 351,750
Peoples Energy Corp. 1,600 60,300
PG & E Corp. 16,700 542,750
Public Service Enterprise Group, Inc. 9,800 400,575
Reliant Energy, Inc. 12,393 342,357
Sempra Energy 10,361 234,418
Sonat, Inc. 4,700 155,687
Southern Co. 30,500 808,250
Texas Utilities Co. 12,307 507,664
Unicom Corp. 9,500 366,344
------------
10,924,103
------------
ELECTRICAL -- 3.8%
Cooper Industries, Inc. 4,100 213,200
Emerson Electric Co. 19,100 1,200,912
General Electric Co. 142,800 16,136,400
General Instrument Corp.* 7,200 306,000
Grainger W.W., Inc. 4,100 220,631
Honeywell, Inc. 5,500 637,312
Johnson Controls, Inc. 3,600 249,525
Solectron Corp.* 11,000 733,562
------------
19,697,542
------------
ELECTRONICS -- 6.1%
Advanced Micro Devices, Inc.* 6,200 111,987
America Online, Inc.* 47,800 5,281,900
Andrew Corp.* 3,287 62,248
Gateway, Inc.* 6,800 401,200
Intel Corp. 144,800 8,606,550
KLA Tencor Corp.* 3,800 246,287
LSI Logic Corp.* 6,100 281,362
Lucent Technologies, Inc. 133,219 8,983,956
Micron Technology, Inc.* 10,800 435,375
Motorola, Inc. 26,400 2,501,400
National Semiconductor Corp.* 7,200 182,250
Parametric Technology Corp.* 11,500 159,562
PE Corp.- PE Biosystems Group 2,200 252,450
Scientific Atlanta, Inc. 3,100 111,600
Tektronix, Inc. 1,950 58,866
Tellabs, Inc.* 17,100 1,155,319
Texas Instruments, Inc. 17,200 2,494,000
Thomas & Betts Corp. 2,400 113,400
------------
31,439,712
------------
ENERGY SERVICES -- 0.7%
Baker Hughes, Inc. 14,070 471,345
CMS Energy Corp. 5,100 213,562
Constellation Energy Group 6,400 189,600
Halliburton Co. 19,200 868,800
Helmerich & Payne, Inc. 2,000 47,625
Rowan Cos., Inc.* 3,400 62,687
Schlumberger, Ltd. 23,500 1,496,656
------------
3,350,275
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
FOOD & BEVERAGES -- 3.7%
Archer-Daniels-Midland Co. 25,480 $ 393,347
Bestfoods, Inc. 12,500 618,750
Campbell Soup Co. 19,000 881,125
Coca-Cola Co. 107,800 6,737,500
Coca-Cola Enterprises, Inc. 18,600 553,350
Conagra, Inc. 21,400 569,775
General Mills, Inc. 6,700 538,512
Heinz H.J. Co. 15,800 791,975
Hershey Foods Corp. 6,200 368,125
Kellogg Co. 17,700 584,100
Nabisco Group Holdings Corp. 14,000 273,875
Pepsico, Inc. 64,100 2,479,869
Pioneer Hi-Bred International, Inc. 10,300 401,056
Quaker Oats Co. 5,900 391,612
Ralston Purina Group 14,400 438,300
Sara Lee Corp. 39,900 905,231
Unilever N.V. 25,439 1,774,370
Wm. Wrigley Jr., Co. 5,000 450,000
------------
19,150,872
------------
FOREST PRODUCTS & PAPER -- 0.9%
Boise Cascade Corp. 2,400 103,200
Champion International Corp. 4,100 196,287
Fort James Corp. 9,500 359,812
Georgia Pacific Corp. 7,600 360,050
International Paper Co. 17,968 907,384
Kimberly-Clark Corp. 23,728 1,352,496
Louisiana-Pacific Corp. 4,700 111,625
Mead Corp. 4,400 183,700
Potlatch Corp. 1,300 57,119
Temple Inland, Inc. 2,400 163,800
Westvaco Corp. 4,400 127,600
Weyerhaeuser Co. 8,600 591,250
Willamette Industries, Inc. 4,800 221,100
------------
4,735,423
------------
HEALTH CARE SERVICES -- 1.5%
Bausch & Lomb, Inc. 2,400 183,600
Baxter International, Inc. 12,500 757,812
Becton, Dickinson & Co. 10,700 321,000
Biomet, Inc. 4,800 190,200
Boston Scientific Corp.* 17,200 755,725
C.R. Bard, Inc. 2,300 109,969
Columbia/HCA Healthcare Corp. 24,982 569,902
Guidant Corp. 13,200 678,975
HCR Manor Care, Inc.* 4,750 114,891
Healthsouth Corp.* 18,200 271,862
Humana, Inc.* 7,300 94,444
IMS Health, Inc. 13,700 428,125
Medtronic, Inc. 25,500 1,985,812
Millipore Corp. 1,900 77,069
PE Corp.- Cellera Genomics Group* 950 15,378
St. Jude Medical, Inc.* 3,600 128,250
Tenet Healthcare Corp.* 13,300 246,881
United Healthcare Corp. 8,100 507,262
Wellpoint Health Networks, Inc.* 2,900 246,137
------------
7,683,294
------------
See Notes to Financial Statements
55
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
HOTELS & RESTAURANTS -- 0.7%
Darden Restaurants, Inc. 5,400 $ 117,787
Hilton Hotels Corp. 11,400 161,737
Marriott International, Inc. Class A 10,400 388,700
McDonald's Corp. 59,200 2,445,700
Tricon Global Restaurants, Inc.* 6,530 353,436
Wendy's International, Inc. 5,100 144,394
------------
3,611,754
------------
HOUSEHOLD GOODS -- 0.3%
Black & Decker Corp. 3,700 233,562
Maytag Corp. 3,900 271,781
Newell Rubbermaid, Inc. 12,350 574,275
Tupperware Corp. 2,500 63,750
Whirlpool Corp. 3,300 244,200
------------
1,387,568
------------
INSURANCE -- 3.5%
Aetna, Inc. 6,253 559,253
AFLAC, Inc. 11,600 555,350
Allstate Corp. 35,840 1,285,760
American General Corp. 10,996 828,823
American International Group, Inc. 53,738 6,290,705
Aon Corp. 11,150 459,938
Chubb Corp. 7,100 493,450
Cigna Corp. 9,000 801,000
Cincinnati Financial Corp. 7,200 269,550
Conseco, Inc. 13,782 419,490
Hartford Financial Services Group, Inc. 10,200 594,788
Jefferson-Pilot Corp. 4,600 304,463
Lincoln National Corp. 8,800 460,350
Loews Corp. 4,900 387,713
Marsh & McLennan Cos., Inc. 11,250 849,375
MBIA, Inc. 4,300 278,425
MGIC Investment Corp. 4,800 233,400
Progressive Corp. 3,200 464,000
Provident Cos., Inc. 5,800 232,000
Providian Financial Corp. 6,150 575,025
Safeco Corp. 5,900 260,338
St. Paul Cos., Inc. 10,168 323,470
Torchmark Corp. 6,000 204,750
Transamerica Corp. 5,400 405,000
UNUM Corp. 6,100 333,975
------------
17,870,391
------------
LEISURE -- 0.4%
Brunswick Corp. 3,900 108,713
Carnival Corp. 27,000 1,309,500
Hasbro, Inc. 8,475 236,770
Jostens, Inc. 1,100 23,169
Mattel, Inc. 17,937 474,209
------------
2,152,361
------------
MACHINERY & EQUIPMENT -- 1.9%
Applied Materials, Inc.* 16,300 1,204,163
Briggs & Stratton Corp. 1,000 57,750
Case Corp. 3,200 154,000
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
MACHINERY & EQUIPMENT (CONTINUED)
Caterpillar, Inc. 15,700 $ 942,000
Crane Co. 2,850 89,597
Danaher Corp. 5,700 331,313
Deere & Co. 10,300 408,138
Dover Corp. 9,800 343,000
Illinois Tool Works, Inc. 10,900 893,800
Ingersoll Rand Co. 7,100 458,838
ITT Industries, Inc. 3,900 148,688
McDermott International, Inc. 2,200 62,150
Milacron, Inc. 1,600 29,600
Nacco Industries, Inc. Class A 300 22,050
Pall Corp. 5,333 118,326
Parker-Hannifin Corp. 4,625 211,594
Raychem Corp. 3,400 125,800
Snap-On, Inc. 2,800 101,325
Stanley Works, Inc. 3,800 122,313
Tenneco, Inc. 7,300 174,288
Thermo Electron Corp. 6,800 136,425
Timken Co. 2,500 48,750
Tyco International, Ltd. 35,722 3,384,660
------------
9,568,568
------------
MEDIA -- 3.4%
CBS Corp.* 30,900 1,342,219
Clear Channel Communications, Inc.* 14,100 972,019
Comcast Corp. Class A 4,800 171,900
Comcast Corp. Special Class A Non-Voting 27,500 1,057,031
Dow Jones & Co., Inc. 4,000 212,250
Gannett Co., Inc. 12,300 877,913
King World Productions, Inc.* 3,100 107,919
Knight-Ridder, Inc. 3,400 186,788
McGraw-Hill Cos., Inc. 8,500 458,469
Mediaone Group* 26,500 1,970,938
Meredith Corp. 2,300 79,638
New York Times Co. Class A 7,800 287,138
Omnicom Group, Inc. 7,900 632,000
R.R. Donnelley & Sons Co. 5,900 218,669
Time Warner, Inc. 52,500 3,858,750
Times Mirror Co. 3,300 195,525
Tribune Co. 5,100 444,338
Viacom, Inc. Class A* 1,120 49,420
Viacom, Inc. Class B* 29,286 1,288,584
Walt Disney Co. 89,900 2,770,044
------------
17,181,552
------------
METALS -- 0.6%
Alcan Aluminium, Ltd. 9,800 312,988
Alcoa, Inc. 16,300 1,008,563
Asarco, Inc. 1,700 31,981
Barrick Gold Corp. 17,200 333,250
Battle Mountain Gold Co. 9,000 21,938
Bethlehem Steel Corp.* 4,500 34,594
Cyprus AMAX Minerals Co. 3,650 55,434
Engelhard Corp. 5,287 119,618
Freeport-McMoran Copper & Gold, Inc. 7,100 127,356
Homestake Mining Co. 11,200 91,700
See Notes to Financial Statements
56
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
METALS (CONTINUED)
Inco, Ltd. 7,900 $ 142,200
Newmont Mining Corp. 7,174 142,583
Nucor Corp. 3,800 180,263
Phelps Dodge Corp. 2,500 154,844
Placer Dome, Inc. 14,000 165,375
Reynolds Metals Co. 2,700 159,300
USX-U.S. Steel Group, Inc. 3,300 89,100
Worthington Industries, Inc. 3,850 63,044
------------
3,234,131
------------
MISCELLANEOUS FINANCE -- 3.5%
American Express Co. 19,800 2,576,475
Associates First Capital Corp. Class A 31,782 1,408,340
Bear Stearns Cos., Inc. 4,910 229,543
Capital One Financial Corp. 8,500 473,344
Charles Schwab Corp. 17,525 1,925,559
Countrywide Credit Industries, Inc. 4,800 205,200
Equifax, Inc. 6,300 224,831
Federal Home Loan Mortgage Corp. 30,600 1,774,800
Federal National Mortgage Association 45,300 3,097,388
Franklin Resources, Inc. 10,900 442,813
Household International, Inc. 21,133 1,001,176
Lehman Brothers Holdings, Inc. 4,900 305,025
Merrill Lynch & Co., Inc. 15,500 1,239,031
Morgan Stanley Dean Witter & Co. 25,269 2,590,073
PaineWebber Group, Inc. 6,200 289,850
SLM Holding Corp. 7,100 325,269
------------
18,108,717
------------
OFFICE EQUIPMENT -- 12.1%
3Com Corp.* 15,700 418,013
Adobe Systems, Inc. 2,500 205,313
Apple Computer, Inc.* 6,900 319,556
Autodesk, Inc. 2,600 76,863
BMC Software, Inc.* 10,300 555,556
Cabletron Systems, Inc.* 7,400 96,200
Cisco Systems, Inc.* 140,000 9,021,250
Compaq Computer Corp. 73,721 1,746,266
Computer Associates International, Inc. 23,562 1,295,910
Compuware Corp.* 16,100 511,175
Data General Corp.* 2,200 32,038
Dell Computer, Inc.* 111,300 4,111,144
EMC Corp.* 44,400 2,442,000
Harris Corp. 3,400 133,238
Hewlett Packard Co. 44,400 4,462,200
International Business Machines Corp. 79,500 10,275,375
Microsoft Corp.* 223,000 20,097,875
Network Appliance, Inc.* 200 11,175
Novell, Inc.* 14,500 384,250
Pitney Bowes, Inc. 11,900 764,575
Seagate Technology, Inc.* 10,500 269,063
Silicon Graphics, Inc.* 8,154 133,522
Sun Microsystems, Inc.* 33,600 2,314,200
Unisys Corp.* 11,200 436,100
Xerox Corp. 28,600 1,689,188
------------
61,802,045
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
OIL & GAS -- 5.5%
Amerada Hess Corp. 3,900 $ 232,050
Anadarko Petroleum Corp. 5,400 198,788
Apache Corp. 4,800 187,200
Ashland, Inc. 2,900 116,363
Atlantic Richfield Co. 14,300 1,194,944
Burlington Resources, Inc. 7,582 327,922
Chevron Corp. 28,500 2,712,844
Coastal Corp. 9,300 372,000
Enron Corp. 15,300 1,250,775
Exxon Corp. 106,300 8,198,388
Kerr-McGee Corp. 3,812 191,315
Mobil Corp. 34,100 3,375,900
Occidental Petroleum Corp. 14,900 314,763
Phillips Petroleum Co. 10,900 548,406
Royal Dutch Petroleum Co. 93,700 5,645,425
Sunoco, Inc. 4,055 122,410
Texaco, Inc. 23,400 1,462,500
Union Pacific Resources Group, Inc. 10,751 175,376
Unocal Corp. 10,400 412,100
USX-Marathon Group, Inc. 13,200 429,825
Williams Cos., Inc. 18,700 795,919
------------
28,265,213
------------
PHOTOGRAPHIC -- 0.2%
Eastman Kodak Co. 13,900 941,725
Polaroid Corp. 1,800 49,725
------------
991,450
------------
POLLUTION CONTROL -- 0.3%
Browning-Ferris Industries, Inc. 6,900 296,700
Laidlaw, Inc. 12,500 92,188
Waste Management, Inc. 26,175 1,406,906
------------
1,795,794
------------
RAILROADS -- 0.5%
Burlington Northern Santa Fe Corp. 20,193 625,983
CSX Corp. 9,300 421,406
Kansas City Southern Industries, Inc. 4,800 306,300
Norfolk Southern Corp. 16,300 491,038
Union Pacific Corp. 10,600 618,113
------------
2,462,840
------------
RETAIL -- 5.7%
American Greetings Corp. Class A 3,100 93,388
Autozone, Inc.* 6,400 192,800
Best Buy Co., Inc.* 8,700 587,250
Circuit City Stores, Inc. 4,400 409,200
Consolidated Stores Corp.* 4,700 126,900
Costco Cos., Inc.* 9,521 761,680
CVS Corp. 17,100 874,238
Dayton Hudson Corp. 19,300 1,254,500
Dillard's, Inc. Class A 4,600 161,575
Dollar General Corp. 9,481 274,949
Federated Department Stores, Inc.* 9,200 487,025
Gap, Inc. 37,462 1,887,173
Harcourt General, Inc. 3,100 159,844
See Notes to Financial Statements
57
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
RETAIL (CONTINUED)
Home Depot, Inc. 64,398 $ 4,149,646
K Mart Corp.* 21,200 348,475
Kohls Corp.* 6,900 532,594
Limited, Inc. 9,581 434,738
Longs Drug Stores, Inc. 1,700 58,756
Lowe's Cos., Inc. 16,200 918,338
May Department Stores Co. 15,300 625,388
Nordstrom, Inc. 6,100 204,350
Office Depot, Inc.* 15,900 350,794
Penney, J.C. Co. 11,500 558,469
Pep Boys-Manny, Moe & Jack 2,400 51,900
Rite Aid Corp. 11,100 273,338
Sears, Roebuck & Co. 16,700 744,194
Staples, Inc. 20,400 629,850
Tandy Corp. 8,600 420,325
TJX Cos., Inc. 13,900 463,044
Toys "R" Us, Inc.* 11,000 227,563
Wal-Mart Stores, Inc. 195,100 9,413,575
Walgreen Co. 43,600 1,280,750
------------
28,956,609
------------
RETAIL - FOOD -- 0.8%
Albertson's, Inc. 18,260 941,531
Great Atlantic & Pacific Tea Co., Inc. 1,700 57,481
Kroger Co.* 36,000 1,005,750
Safeway, Inc.* 21,300 1,054,350
Supervalu, Inc. 5,200 133,575
Sysco Corp. 14,600 435,263
Winn-Dixie Stores, Inc. 6,400 236,400
------------
3,864,350
------------
TELEPHONES -- 8.6%
Alltel Corp. 12,300 879,450
Ameritech Corp. 48,000 3,528,000
AT&T Corp. 139,362 7,778,142
Bell Atlantic Corp. 67,804 4,432,687
BellSouth Corp. 82,900 3,885,938
CenturyTel, Inc. 6,000 238,500
Frontier Corp. 7,400 436,600
GTE Corp. 42,200 3,196,650
MCI Worldcom, Inc.* 81,419 7,002,034
Nextel Communications, Inc. Class A* 13,000 652,438
Nortel Networks Corp. 28,980 2,515,826
SBC Communications, Inc. 86,008 4,988,464
Sprint Corp. (FON Group) 37,800 1,996,313
Sprint Corp. (PCS Group)* 18,900 1,079,663
US West, Inc. 21,911 1,287,271
------------
43,897,976
------------
THRIFT INSTITUTIONS -- 0.2%
Golden West Financial Corp. 2,400 235,200
Washington Mutual, Inc. 25,893 915,965
------------
1,151,165
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
TRUCKING -- 0.1%
Cummins Engine Co., Inc. 1,600 $ 91,400
Paccar, Inc. 3,090 164,929
Ryder System, Inc. 3,000 78,000
------------
334,329
------------
TOTAL COMMON STOCK
(Cost $280,650,285) 489,988,464
------------
CONVERTIBLE PREFERRED STOCK -- 0.0%
CONTAINERS -- 0.0%
Sealed Air Corp., $2.00, 04/01/18,
Series A (Cost $42,011) 1,282 80,125
------------
RIGHTS & WARRANTS -- 0.0%
U.S. Surgical Corp. (Cost $0) 22 0
------------
COUPON PAR
RATE MATURITY (000)
-------- -------- ------
U.S. TREASURY OBLIGATIONS -- 0.3%
U.S. Treasury Bills**
5.198% 07/22/99 $1,000 997,540
4.330% 12/09/99 500 489,356
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,487,428) 1,486,896
------------
SHARES
-------
TEMPORARY INVESTMENTS -- 3.9%
Dreyfus Cash Management Plus #719 6,656,643 6,656,643
Goldman Sachs Financial Square
Money Market Portfolio 6,451,178 6,451,178
J.P. Morgan Institutional Prime
Money Market Portfolio 6,568,198 6,568,198
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $19,676,019) 19,676,019
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $301,855,743) $511,231,504
============
- --------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
** Securities pledged as collateral for futures contracts.
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
--------- ------------
Futures Contracts -- Long Position
S&P 500 Index, September 1999 64 $749,450
== ========
See Notes to Financial Statements
58
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $301,855,743) .................. $511,231,504
Collateral receivable for securities loaned ............... 57,410,779
Dividends receivable ...................................... 406,980
Interest receivable ....................................... 89,500
Receivable for securities sold ............................ 3,542,629
Receivable for capital stock sold ......................... 483,550
Other assets .............................................. 427,823
------------
Total assets ....................................... 573,592,765
------------
LIABILITIES
Payable upon return of securities loaned .................. 57,410,779
Payable for securities purchased .......................... 3,320,140
Payable for capital stock redeemed ........................ 480,819
Accrued expenses .......................................... 184,143
------------
Total liabilities .................................. 61,395,881
------------
NET ASSETS
Applicable to 15,577,453 Institutional Shares and
627,853 N Shares of beneficial interest
outstanding, $.001 par value (Note 7) ..................... $512,196,884
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($492,353,329/15,577,453) ................................. $31.61
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER N SHARE
($19,843,555/627,853) ..................................... $31.61
======
See Notes to Financial Statements
59
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK -- 53.0%
AEROSPACE -- 2.6%
Alliant Techsystems, Inc.* 1,100 $ 95,150
Cordant Technologies, Inc. 7,200 325,350
Esterline Technologies Corp.* 7,300 104,937
Litton Industries, Inc.* 12,000 861,000
Triumph Group, Inc.* 1,600 40,800
------------
1,427,237
------------
AIR TRANSPORT -- 0.5%
Alaska Air Group, Inc.* 1,000 41,750
Continental Airlines, Inc. Class B* 700 26,337
Delta Air Lines, Inc. 3,700 213,212
------------
281,299
------------
ALCOHOLIC BEVERAGES & TOBACCO-- 0.6%
Philip Morris Cos., Inc. 4,700 188,881
Universal Corp. 4,700 133,656
------------
322,537
------------
APPAREL, TEXTILES -- 1.2%
Dan River, Inc. Class A* 400 2,950
Oxford Industries, Inc. 1,700 48,131
Shaw Industries, Inc.* 22,800 376,200
VF Corp. 4,900 209,475
------------
636,756
------------
AUTO RELATED -- 0.4%
Avis Rent A Car, Inc.* 2,000 58,250
Dollar Thrifty Automotive Group, Inc.* 5,900 137,175
------------
195,425
------------
AUTOS -- 2.2%
Ford Motor Co. 11,900 671,606
General Motors Corp. 7,200 475,200
Navistar International Corp.* 1,700 85,000
------------
1,231,806
------------
BANKS -- 3.0%
Chase Manhattan Corp. 10,300 892,237
Compass Bancshares, Inc. 3,150 85,837
Doral Financial Corp. 2,400 41,250
Everen Capital Corp. 2,200 65,587
Flagstar Bancorp, Inc. 3,500 87,937
GBC Bancorp 4,000 81,000
Independent Bank Corp. 2,500 38,281
One Valley Bancorp 750 28,125
Provident Bankshares Corp. 1,680 38,955
Southtrust Corp. 8,400 321,825
------------
1,681,034
------------
BUSINESS SERVICES -- 1.8%
Computer Sciences Corp.* 2,900 200,644
Kelly Services, Inc. Class A 3,000 96,000
Oracle Corp.* 5,300 196,762
Reynolds & Reynolds Co. Class A 6,100 142,206
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Viad Corp. 12,100 $ 374,344
------------
1,009,956
------------
CASINOS -- 0.6%
Anchor Gaming* 2,400 115,350
Mandalay Resort Group* 11,300 238,712
------------
354,062
------------
CHEMICALS -- 0.3%
Albemarle Corp. 400 9,250
Cambrex Corp. 2,000 52,500
Cytec Industries, Inc.* 2,400 76,500
Schulman (A.), Inc. 3,000 51,000
------------
189,250
------------
CONSTRUCTION -- 1.8%
Apogee Enterprises, Inc. 1,000 13,562
Centex Corp. 15,400 578,462
Champion Enterprises, Inc.* 1,600 29,800
D.R. Horton, Inc. 900 14,962
Fleetwood Enterprises, Inc. 3,800 100,462
Vulcan Materials Co. 500 24,125
Webb Corp. 4,000 95,500
York International Corp. 2,900 124,156
------------
981,029
------------
CONTAINERS -- 0.0%
Libbey, Inc. 700 20,300
------------
DRUGS -- 1.8%
Amgen, Inc.* 1,700 103,381
Bergen Brunswig Corp. Class A 20,957 361,508
Bristol-Myers Squibb Co. 2,600 183,137
McKesson HBOC, Inc. 7,468 239,909
Mylan Laboratories, Inc. 3,900 103,350
Priority Healthcare Corp., Class B 537 18,526
------------
1,009,811
------------
ELECTRIC & GAS -- 2.4%
Calpine Corp.* 3,000 162,000
Central Hudson Gas & Electric Corp. 1,500 63,000
Cleco Corp. 1,100 33,412
Columbia Energy Group 4,200 263,287
Eastern Utilities Associates 3,700 107,762
Energy East Corp. 17,300 449,800
Public Service Co. of New Mexico 4,000 79,500
Reliant Energy, Inc. 4,900 135,362
Washington Gas Light Corp. 1,900 49,400
------------
1,343,523
------------
ELECTRICAL -- 0.3%
Encore Wire Corp.* 2,100 18,900
General Semiconductor, Inc.* 8,000 73,000
Stoneridge, Inc.* 1,000 13,500
Technitrol, Inc. 900 29,025
------------
134,425
------------
See Notes to Financial Statements
60
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
ELECTRONICS -- 1.5%
Amkor Technology, Inc.* 1,000 $ 10,187
C&D Technologies, Inc. 1,300 39,812
CHS Electronics, Inc.* 7,900 34,562
Intel Corp. 9,700 576,544
Micron Technology, Inc.* 2,800 112,875
NeoMagic Corp.* 2,800 23,450
Plexus Corp.* 1,800 53,100
------------
850,530
------------
ENERGY SERVICES -- 0.2%
Atwood Oceanics, Inc.* 1,900 59,375
Eagle Geophysical, Inc.* 141 106
Friede Goldman International, Inc.* 900 12,488
Gulf Island Fabrication, Inc.* 1,700 20,294
Seitel, Inc.* 2,200 35,612
------------
127,875
------------
FOOD & BEVERAGES -- 1.0%
Dean Foods Co. 4,100 170,406
IBP, Inc. 3,800 90,250
Smithfield Foods, Inc.* 9,500 314,688
------------
575,344
------------
FOREST PRODUCTS & PAPER -- 1.3%
Buckeye Technologies, Inc.* 3,400 51,638
Georgia Pacific Corp. 8,400 397,950
Weyerhaeuser Co. 3,900 268,125
------------
717,713
------------
HEALTH CARE SERVICES -- 1.6%
AmeriPath, Inc.* 1,800 15,413
AmeriSource Health Corp. Class A* 6,200 158,100
Covance, Inc.* 9,200 220,225
Curative Health Services, Inc.* 6,800 37,400
Datascope Corp.* 1,300 41,763
Hanger Orthopedic Group, Inc.* 1,500 21,281
Lincare Holdings, Inc.* 2,000 50,000
Pediatrix Medical Group, Inc.* 1,000 21,250
Thermoquest Corp.* 3,200 42,600
Wellpoint Health Networks, Inc.* 3,000 254,625
------------
862,657
------------
HOTELS & RESTAURANTS -- 2.0%
Bob Evans Farms, Inc. 800 15,850
Brinker International, Inc.* 4,500 122,344
Darden Restaurants, Inc. 20,575 448,792
Outback Steakhouse, Inc.* 12,300 481,238
Red Roof Inns, Inc.* 1,900 34,081
------------
1,102,305
------------
INSURANCE -- 4.7%
Allstate Corp. 18,700 670,863
Chartwell Re Corp. 1,300 24,213
Cigna Corp. 9,400 836,600
Conseco, Inc. 3,800 115,663
Equitable Cos., Inc. 7,400 495,800
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
INSURANCE (CONTINUED)
Fidelity National Financial, Inc. 1,320 $ 27,720
First American Financial Corp. 5,500 98,313
Gallagher (Arthur J.) & Co. 3,000 148,500
LandAmerica Financial Group, Inc. 800 23,000
Old Republic International Corp. 6,250 108,203
PMI Group, Inc. 600 37,688
Selective Insurance Group, Inc. 1,600 30,400
------------
2,616,963
------------
MACHINERY & EQUIPMENT -- 1.0%
Applied Materials, Inc.* 5,200 384,150
Gardner Denver Machinery, Inc.* 3,500 56,438
Gleason Corp. 2,475 41,611
Specialty Equipment Cos.* 1,500 44,156
------------
526,355
------------
MEDIA -- 0.4%
R.R. Donnelley & Sons Co. 6,200 229,788
------------
METALS -- 0.7%
Alcoa, Inc. 4,400 272,250
Cleveland Cliffs, Inc. 700 22,663
Reliance Steel & Aluminum Corp. 1,800 70,200
------------
365,113
------------
MISCELLANEOUS FINANCE -- 1.8%
Countrywide Credit Industries, Inc. 2,600 111,150
Lehman Brothers Holdings, Inc. 5,200 323,700
Morgan Stanley Dean Witter & Co. 3,900 399,750
PaineWebber Group, Inc. 3,800 177,650
------------
1,012,250
------------
OFFICE EQUIPMENT -- 4.8%
Compaq Computer Corp. 12,900 305,569
Dell Computer, Inc.* 2,800 103,425
International Business Machines Corp. 7,700 995,225
Lexmark International Group, Inc. Class A* 10,900 720,081
Pomeroy Computer Resources, Inc.* 1,700 23,694
Quantum Corp.* 6,600 158,400
Tech Data Corp.* 9,800 374,238
------------
2,680,632
------------
OIL & GAS -- 2.4%
Coastal Corp. 19,700 788,000
Mobil Corp. 1,800 178,200
Sunoco, Inc. 12,700 383,381
------------
1,349,581
------------
RAILROADS -- 0.2%
Varlen Corp. 2,150 86,269
------------
RETAIL -- 2.8%
BJ's Wholesale Club, Inc.* 16,500 496,031
Dayton Hudson Corp. 4,000 260,000
Intimate Brands, Inc. Class A 7,875 373,078
Media Arts Group, Inc.* 2,200 9,625
Musicland Stores Corp.* 6,900 61,238
Nature's Sunshine Products, Inc. 1,800 19,125
See Notes to Financial Statements
61
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
RETAIL (CONTINUED)
Ross Stores, Inc. 4,400 $ 220,825
Sola International, Inc.* 1,200 23,325
Wet Seal, Inc. Class A* 3,200 90,400
------------
1,553,647
------------
RETAIL - FOOD -- 1.6%
Kroger Co.* 18,000 502,875
Safeway, Inc.* 8,100 400,950
------------
903,825
------------
TELEPHONES -- 4.9%
AT&T Corp. 16,037 895,065
Bell Atlantic Corp. 6,000 392,250
GTE Corp. 5,900 446,925
SBC Communications, Inc. 3,537 205,146
Sprint Corp. (FON Group) 6,000 316,875
Telefonos de Mexico S.A. ADR 1,800 145,463
US West, Inc. 5,800 340,750
------------
2,742,474
------------
THRIFT INSTITUTIONS -- 0.6%
Dime Bancorp, Inc. 14,600 293,825
Washington Federal, Inc. 1,000 22,375
------------
316,200
------------
TRUCKING -- 0.0%
USFreightways Corp. 400 18,400
------------
TOTAL COMMON STOCK
(Cost $24,766,338) 29,456,371
------------
COUPON PAR
RATE MATURITY (000)
- ------ -------- -------
ASSET-BACKED SECURITIES -- 4.8%
AK Bank Series 1998-A, Class 1
7.500% 07/15/05 $ 250 235,000
BankAmerica Manufactured Housing
Contract Series 1998-2, Class B1
7.930% 12/10/25 425 331,367
Case Equipment Loan Trust Series 1997-A,
Class B
6.700% 03/15/04 500 495,379
First Plus Home Loan Trust Series 1997-3,
Class A6
7.080% 07/10/17 285 284,430
Green Tree Financial Corp. Series 1997-4,
Class A5
6.880% 02/15/29 650 653,521
Green Tree Home Equity Loan Trust
Series 1999-A, Class A3
5.980% 04/15/18 298 293,577
Team Fleet Financing Corp. Series 1997-1,
Class A
7.350% 05/15/03 375 380,002
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,783,644) 2,673,276
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ------- -------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 9.6%
Asset Securitization Corp.
Series 1997-D4, Class PS1 IO
1.233% 04/14/29 $6,238 $ 406,469
Asset Securitization Corp.
Series 1997-D5, Class PS1 IO
1.587% 02/14/41 2,941 267,864
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
6.588% 05/25/28 417 402,851
Federal Home Loan Mortgage Corp.
Series 1897, Class G
7.250% 03/15/22 695 703,515
Federal Home Loan Mortgage Corp.
Series 2075, Class QG
6.250% 12/15/26 350 329,438
Federal National Mortgage Association
Series 110, Class 2 IO
9.000% 11/25/19 500 156,660
Federal National Mortgage Association
Series 145, Class 1 PO
11.753% 06/25/22 525 395,350
Federal National Mortgage Association
Series 1996-53, Class PE
6.500% 11/18/10 800 799,271
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 2,627 87,011
Federal National Mortgage Association
Series 1997-84, Class PL IO
6.500% 02/25/09 4,015 457,961
Federal National Mortgage Association
Series X-13, Class G
6.500% 08/25/22 845 839,550
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 475 475,949
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $5,436,121) 5,321,889
------------
MORTGAGE-BACKED SECURITIES -- 6.9%
Federal National Mortgage Association
6.500% 01/15/14 400 394,625
6.500% 01/15/29 875 845,195
Federal National Mortgage Association
Pool #250888
7.000% 04/01/12 1,239 1,248,104
Federal National Mortgage Association
Pool #345739
7.500% 03/01/27 53 53,472
Federal National Mortgage Association
Pool #363317
7.500% 11/01/26 17 17,294
Federal National Mortgage Association
Pool #368941
7.500% 12/01/26 401 406,490
Federal National Mortgage Association
Pool #371323
7.500% 03/01/27 266 269,868
See Notes to Financial Statements
62
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ------- ------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Government National Mortgage Association
Pool #354675
6.500% 10/15/23 $ 598 $ 580,604
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $3,812,234) 3,815,652
------------
CORPORATE BONDS -- 10.7%
ELECTRIC -- 0.9%
Public Service Co. of Colorado
6.600% 02/01/01 500 503,125
------------
FINANCE - BANK -- 0.4%
Providian National Bank
6.650% 02/01/04 250 245,000
------------
FINANCE - NON-BANK -- 2.8%
Associates Corp. of North America
8.550% 07/15/09 300 331,125
Associates Corp. of North America
Euro Bond
6.875% 06/20/02 190 191,425
General Motors Acceptance Corp.
6.850% 06/17/04 250 253,438
Lehman Brothers Holdings, Inc.
8.800% 03/01/15 250 271,250
Xerox Credit Corp. Euro Bond
5.400% 09/11/00 500 497,817
------------
1,545,055
------------
INDUSTRIAL -- 4.1%
Air Products & Chemicals, Inc.
6.862% 10/25/03 535 538,344
Boston University
7.625% 07/15/97 120 118,950
Cendant Corp.
7.750% 12/01/03 310 313,875
Cummins Engine Co., Inc.
5.650% 03/01/98 245 164,456
Ford Motor Co.
7.500% 08/01/26 130 130,000
7.400% 11/01/46 370 359,825
James River Corp.
6.700% 11/15/03 300 299,625
Nordstrom, Inc.
6.950% 03/15/28 40 38,100
Time Warner Entertainment, Inc.
8.375% 07/15/33 130 141,863
Xerox Capital Trust I
8.000% 02/01/27 190 191,188
------------
2,296,226
------------
TELEPHONES -- 1.5%
Airtouch Communications, Inc.
6.650% 05/01/08 410 401,288
MCI Worldcom, Inc.
6.125% 04/15/02 310 306,900
Sprint Capital Corp.
6.900% 05/01/19 125 116,875
------------
825,063
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ------- ------------
CORPORATE BONDS (CONTINUED)
TRANSPORTATION -- 1.0%
CSX Corp.
7.250% 05/01/27 $ 535 $ 543,694
------------
TOTAL CORPORATE BONDS
(Cost $6,047,282) 5,958,163
------------
SUPRANATIONAL BONDS -- 1.4%
African Development Bank (Cost $782,342)
7.750% 12/15/01 770 795,025
------------
YANKEE BONDS -- 3.2%
Cable & Wireless Communications Notes
6.625% 03/06/05 80 78,200
Empresa Nacional Electric
7.750% 07/15/08 300 282,750
Export-Import Bank Korea
6.500% 11/15/06 325 310,375
Hydro-Quebec
8.050% 07/07/24 545 590,644
Korea Development Bank
7.375% 09/17/04 90 88,425
Korea Electric Power Global
6.375% 12/01/03 150 141,375
United Utilities P.L.C.
6.450% 04/01/08 300 285,375
------------
TOTAL YANKEE BONDS
(Cost $1,817,419) 1,777,144
------------
U.S. TREASURY OBLIGATIONS -- 8.7%
U.S. TREASURY BILLS -- 0.1%
4.520% 09/16/99 55 54,460
------------
U.S. TREASURY BONDS -- 1.2%
8.875% 08/15/17 136 173,683
8.000% 11/15/21 420 505,565
------------
679,248
------------
U.S. TREASURY NOTES -- 7.4%
7.875% 11/15/04 1,090 1,188,821
7.000% 07/15/06 2,710 2,871,608
6.500% 10/15/06 25 25,816
------------
4,086,245
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $4,922,600) 4,819,953
------------
See Notes to Financial Statements
63
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
TEMPORARY INVESTMENTS -- 1.7%
Dreyfus Cash Management Plus #719 294,727 $ 294,727
Goldman Sachs Financial Square
Money Market Portfolio 298,889 298,889
J.P. Morgan Institutional Prime
Money Market Portfolio 319,993 319,993
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $913,609) 913,609
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $51,281,589) $55,531,082
===========
- -----------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depository Receipt.
IO -- Interest Only Security.
PO -- Principal Only Security; interest rate is effective yield.
See Notes to Financial Statements
64
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $51,281,589) ................... $55,531,082
Collateral receivable for securities loaned ............... 2,380,125
Dividends receivable ...................................... 26,838
Interest receivable ....................................... 356,647
Receivable for securities sold ............................ 884,672
Receivable for capital stock sold ......................... 12,306
Other assets .............................................. 26,235
-----------
Total assets ....................................... 59,217,905
-----------
LIABILITIES
Payable upon return of securities loaned .................. 2,380,125
Payable for securities purchased .......................... 1,633,658
Payable for capital stock redeemed ........................ 29,320
Accrued expenses .......................................... 42,841
-----------
Total liabilities .................................. 4,085,944
-----------
NET ASSETS
Applicable to 3,652,051 Institutional Shares,
190,545 N Shares and 5,242 A Shares of
beneficial interest outstanding, $.001 par value (Note 7) $55,131,961
==========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($52,326,814/3,652,051) $14.33
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER N SHARE
($2,730,044/190,545) $14.33
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($75,103/5,242) $14.33
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($14.33/0.945) (Note 5) $15.16
======
See Notes to Financial Statements
65
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK--95.5%
AUSTRALIA -- 2.4%
Broken Hill Proprietary Co., Ltd. 215,000 $ 2,490,485
National Australia Bank, Ltd. 186,112 3,079,795
------------
5,570,280
------------
AUSTRIA -- 2.5%
Bank Austria A.G. 30,500 1,604,137
EVN A.G. 12,500 1,827,923
VA Technologie A.G. 27,700 2,509,534
------------
5,941,594
------------
BRAZIL -- 1.6%
Companhia Vale do Rio Doce ADR 55,000 1,091,964
Telecomunicacoes Brasileiras S.A. ADR 11,000 992,062
Telecomunicacoes Brasileiras S.A. ADR* 11,000 687
Uniao de Bancos Brasileiros S.A. GDR 68,000 1,636,250
------------
3,720,963
------------
CANADA -- 4.0%
Alcan Aluminium, Ltd. 78,000 2,491,125
Methanex Corp.* 671,000 2,538,833
Moore Corp., Ltd. 168,500 1,411,187
Nexfor, Inc. 505,000 3,104,963
------------
9,546,108
------------
CHINA -- 0.5%
Shandong Huaneng Power Co., Ltd. ADR 221,000 1,146,437
------------
COLOMBIA -- 0.2%
Bancolombia S.A. ADR 90,000 427,500
------------
CROATIA -- 0.7%
Pliva D.D. GDR 116,000 1,725,396
------------
CZECH REPUBLIC -- 2.0%
Czech Power Co.* 1,033,000 2,117,913
Komercni Banka A.S. GDR* 426,800 2,683,548
------------
4,801,461
------------
DENMARK -- 1.2%
Forsikringsselskabet Codan 10,600 1,120,168
Unidanmark A.S.-A 25,300 1,688,594
------------
2,808,762
------------
FINLAND -- 1.0%
Fortum Corp. 219,400 1,061,160
Kemira Oyj 208,900 1,262,431
------------
2,323,591
------------
FRANCE -- 4.8%
Alcatel 20,000 2,815,362
Banque Nationale de Paris 22,294 1,857,680
Elf Aquitaine S.A. 15,750 2,311,304
Rhone-Poulenc S.A. 50,000 2,284,774
Scor S.A. 43,900 2,177,615
------------
11,446,735
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
GERMANY -- 2.7%
BASF A.G. 61,000 $ 2,679,853
Bilfinger & Berger Bau A.G. 79,000 1,947,137
Viag A.G. 3,550 1,647,451
------------
6,274,441
------------
HONG KONG -- 6.5%
HSBC Holdings P.L.C. 76,800 2,801,327
Hutchison Whampoa, Ltd. 345,000 3,123,788
Jardine Matheson Holdings, Ltd. 705,067 3,525,335
Smartone Telecommunications Holdings, Ltd. 499,000 1,775,112
Swire Pacific, Ltd.-A 570,000 2,821,124
Techtronic Industries Co. 6,726,000 1,343,707
------------
15,390,393
------------
INDIA -- 0.5%
State Bank of India, Ltd. GDR 105,000 1,288,350
------------
INDONESIA -- 0.7%
PT Indosat 870,000 1,668,025
------------
ITALY -- 1.4%
Burgo (Cartiere) S.P.A. 179,000 1,148,193
Societa Assicuratrice Industriale (SAI) 428,000 2,251,052
------------
3,399,245
------------
JAPAN -- 13.3%
Aoyama Trading Co., Ltd. 95,000 2,998,278
Daito Trust Construction Co., Ltd. 227,800 2,540,811
Daiwa House Industry Co., Ltd. 215,000 2,261,266
Daiwa Securities Co., Ltd. 582,000 3,846,784
Dowa Fire & Marine Insurance Co. 635,000 2,109,039
Hitachi, Ltd. 141,000 1,322,208
Kyudenko Co., Ltd. 385,000 2,201,160
Kyushu Electric Power Co., Inc. 90 1,383
Marubeni Corp. 1,350,000 2,821,884
Nippon Fire & Marine Insurance 705,000 2,388,129
NTT Mobile Communications Network, Inc. 270 3,658,411
Sankyo Co., Ltd. 92,000 2,318,315
Yamanouchi Pharmaceutical Co., Ltd. 82,000 3,136,749
------------
31,604,417
------------
KOREA -- 3.0%
Korea Fund, Inc.* 486,000 7,229,250
------------
MALAYSIA** -- 2.8%
Malakoff BHD 1,075,000 2,428,971
Malayan Banking BHD 1,424,000 3,631,678
O.Y.L. Industries BHD 279,000 636,644
------------
6,697,293
------------
MEXICO -- 1.5%
Panamerican Beverages, Inc. 49,000 1,166,812
Telefonos de Mexico S.A. ADR 30,000 2,424,375
------------
3,591,187
------------
See Notes to Financial Statements
66
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
NETHERLANDS -- 2.6%
Eriks Holdings N.V. 16,200 $ 860,387
European Vinyls Corp. International N.V. 159,000 1,344,567
Koninklijke Ahrend Groep N.V. 69,000 1,199,004
Koninklijke KPN N.V. 60,000 2,815,362
------------
6,219,320
------------
NEW ZEALAND -- 3.9%
Air New Zealand, Ltd. 1,660,000 3,430,702
Carter Holt Harvey, Ltd. 2,299,000 2,753,327
Fletcher Challenge Energy, Ltd. 1,135,000 3,079,471
------------
9,263,500
------------
NORWAY -- 1.8%
Bergesen D.Y. A.S.A. - B 89,400 1,266,236
Odfjell A.S.A. 98,100 1,395,691
Union Bank of Norway 83,000 1,549,878
------------
4,211,805
------------
PERU -- 0.5%
Banco Wiese ADR 245,000 290,938
Southern Peru Copper Corp., Ltd. 58,000 837,375
------------
1,128,313
------------
PHILIPPINES -- 2.4%
Philippine Long Distance Telephone Co. 86,000 2,621,893
Philippine National Bank* 1,154,200 3,124,473
------------
5,746,366
------------
RUSSIA -- 1.8%
Lukoil Holding ADR 51,000 2,019,601
Rostelecom ADR* 225,000 2,207,813
------------
4,227,414
------------
SINGAPORE -- 3.2%
Asia Pulp & Paper Co., Ltd. ADR* 228,000 2,194,500
City Developments, Ltd. 429,000 2,746,656
United Overseas Bank, Ltd. 394,000 2,753,999
------------
7,695,155
------------
SLOVAKIA -- 0.5%
Nafta A.S. 30,000 351,048
Slovakofarma A.S. GDR 157,000 554,210
Vychodoslovenske Zeleziarne A.S.* 89,000 364,707
------------
1,269,965
------------
SLOVENIA -- 0.7%
SKB Banka D.D. GDR 132,000 1,617,000
------------
SOUTH AFRICA -- 1.3%
Anglogold, Ltd. 31,159 1,342,544
Standard Bank Investment Corp., Ltd. 550,300 1,819,341
------------
3,161,885
------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK (CONTINUED)
SPAIN -- 3.4%
Iberdrola S.A. 172,774 $ 2,631,664
Repsol S.A. 129,906 2,652,565
Telefonica S.A. 58,416 2,813,930
------------
8,098,159
------------
SWEDEN -- 3.8%
ABB AB-B 148,000 1,958,423
Assidoman AB 162,500 2,446,558
AstraZeneca Group P.L.C. 64,095 2,495,424
SKF AB-B 113,500 2,095,983
------------
8,996,388
------------
SWITZERLAND -- 3.1%
ABB A.G. 1,120 1,657,029
Forbo Holdings A.G. 2,725 1,083,276
Schweizerische Lebensversicherungs-und
Rentenanstalt 3,850 2,330,422
UBS A.G. 7,700 2,298,227
------------
7,368,954
------------
THAILAND -- 3.3%
Bangkok Bank Public Co., Ltd.* 500,000 1,871,243
Thai Farmers Bank Public Co., Ltd.* 1,000,000 3,091,619
Thailand International Fund 255 2,894,250
------------
7,857,112
------------
UNITED KINGDOM -- 9.9%
BICC Group P.L.C. 1,462,458 2,086,258
Cable & Wireless P.L.C. 179,844 2,291,987
Enterprise Oil P.L.C.* 384,000 2,487,764
Marks & Spencer P.L.C. 400,000 2,313,994
National Power P.L.C. 295,380 2,151,093
Nycomed Amersham P.L.C. 344,500 2,408,346
Rolls-Royce P.L.C. 550,726 2,330,859
Royal & Sun Alliance Insurance Group
P.L.C. 274,936 2,465,933
Royal Bank of Scotland Group P.L.C. 131,450 2,677,067
Sainsbury (J.) P.L.C. 368,732 2,324,914
------------
23,538,215
------------
TOTAL COMMON STOCK
(Cost $217,534,677) 227,000,979
------------
PREFERRED STOCK -- 0.7%
GERMANY -- 0.3%
Moebel Walther A.G. 41,900 650,312
------------
NETHERLANDS -- 0.4%
Ballast Nedam N.V. 39,000 1,033,640
------------
TOTAL PREFERRED STOCK
(Cost $3,308,935) 1,683,952
------------
CURRENCY -- 0.0%
Euro Currency (Cost $3) 2 2
------------
See Notes to Financial Statements
67
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ------- ------------
U.S. TREASURY OBLIGATIONS -- 3.8%
U.S. Treasury Bills
3.400% 07/08/99 $2,835 $ 2,833,126
3.440% 07/08/99 780 779,478
3.450% 07/08/99 5,505 5,501,307
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $9,113,911) 9,113,911
------------
SHARES
------
TEMPORARY INVESTMENTS -- 0.0%
Provident Institutional Funds - TempCash
(Cost $8,143) 8,143 8,143
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $229,965,669) 237,806,987
------------
OTHER ASSETS AND LIABILITIES -- 0.0%
Dividends receivable and other assets 1,364,424
Receivable for capital stock sold 206,091
Payable for securities purchased (497,573)
Payable for capital stock redeemed (838,061)
Accrued expenses (269,411)
------------
(34,530)
------------
NET ASSETS -- 100.0%
Applicable to 16,068,509 Institutional Shares,
155,788 N Shares and 40.536 A Shares of
beneficial interest outstanding,
$.001 par value (Note 7) $237,772,457
============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER INSTITUTIONAL SHARE
($235,495,208/16,068,509) $14.66
======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER N SHARE ($2,276,657/155,788) $14.61
======
NET ASSET VALUE AND REDEMPTION
PRICE PER A SHARE ($592.35/40.536) $14.61
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($14.61/0.945) (NOTE 5) $15.46
======
- --------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
** Effective September 1998, the Malaysian government fixed the ringgit
exchange rate at 3.80 per $1 and suspended investors' ability to
convert proceeds from the sale of Malaysian securities into foreign
currency proceeds for one year from initial purchase, or September 1,
1998, whichever is later. Accordingly, the Fund considers Malaysian
security holdings to be illiquid and has established a fair value of
4.47 ringgits per US dollar for the determination of the dollar value
of Malaysian holdings.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
See Notes to Financial Statements
68
<PAGE>
HARRIS INSIGHT FUNDS
EMERGING MARKETS
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------- ------------
COMMON STOCK -- 96.6%
ARGENTINA -- 0.8%
Telefonica de Argentina S.A. ADR 7,600 $ 238,450
------------
BRAZIL -- 7.3%
Aracruz Celulose S.A. ADR 14,500 319,000
Companhia Energetica de Minas Gerais
S.A. ADR 11,000 229,561
Companhia Vale do Rio Doce ADR 16,100 319,648
Petroleo Brasileiro S.A. ADR 19,700 303,343
Tele Sudeste Celular Participacoes
S.A. ADR 9,600 278,400
Telecomunicacoes Brasileiras S.A. ADR* 3,100 194
Telecomunicacoes Brasileiras S.A. ADR 3,100 279,581
Uniao de Bancos Brasileiros S.A. GDR 17,700 425,906
------------
2,155,633
------------
CHILE -- 2.0%
Administradora de Fondos de Pensiones
Provida S.A. ADR 12,000 264,000
Compania de Telecomunicaciones de
Chile S.A. ADR 13,463 333,209
------------
597,209
------------
CHINA -- 0.9%
Huaneng Power International, Inc. ADR* 15,000 256,875
------------
CROATIA -- 1.3%
Pliva D.D. GDR 26,000 386,727
------------
CZECH REPUBLIC -- 0.7%
Deza Valasske Mezirici A.S. 2,400 24,426
Komercni Banka A.S. GDR* 30,400 191,143
------------
215,569
------------
GREECE -- 1.6%
Hellenic Telecommunication Organization
(OTE) S.A. 17,000 364,390
Panafon Hellenic Telecom S.A.* 4,800 115,766
------------
480,156
------------
HONG KONG -- 10.8%
Citic Pacific, Ltd. 116,000 370,040
HSBC Holdings P.L.C. 10,400 379,346
Hutchison Whampoa, Ltd. 46,000 416,505
Jardine Matheson Holdings, Ltd. 64,400 322,000
Shanghai Petrochemical Co., Ltd. 3,250,000 766,568
Smartone Telecommunications Holdings,
Ltd. 108,000 384,192
Swire Pacific, Ltd.-A 49,000 242,518
Wing Hang Bank, Ltd. 93,000 299,068
------------
3,180,237
------------
HUNGARY -- 3.9%
BorsodChem Rt. 12,500 302,329
EGIS Rt. 17,800 426,101
Magyar Tavkozlesi Rt. ADR 8,700 239,250
Pick Szeged Rt. 6,024 169,110
------------
1,136,790
------------
COMMON STOCK (CONTINUED)
INDIA -- 3.5%
Bajaj Auto, Ltd. GDR 11,000 $ 180,400
BSES, Ltd. GDR 28,500 294,103
Gujarat Ambuja Cement GDR 42,000 309,964
Mahanagar Telephone Nigam, Ltd. GDR* 25,000 247,500
------------
1,031,967
------------
INDONESIA -- 2.2%
PT Semen Gresik TBK 145,000 315,914
PT Indosat ADR 17,000 331,500
------------
647,414
------------
ISRAEL -- 1.6%
ECI Telecom, Ltd. 6,500 214,500
Koor Industries, Ltd. ADR 11,000 257,125
------------
471,625
------------
KOREA -- 10.6%
Kookmin Bank GDR 30,000 610,500
Korea Telecom Corp. ADR* 9,000 360,000
Pohang Iron & Steel Co., Ltd. ADR 23,200 780,100
Samsung Electronics Co., Ltd. GDR 13,550 725,602
SK Telecom Co., Ltd. ADR 37,636 639,812
------------
3,116,014
------------
MALAYSIA** -- 7.2%
Commerce Asset Holdings BHD 120,000 252,349
Malakoff BHD 90,000 203,356
Malayan Banking BHD 116,000 295,839
Perusahaan Otomobil Nasional BHD 160,000 314,989
Road Builder (M) Holdings BHD 343,000 560,157
Technology Resources Industries BHD 695,000 481,991
------------
2,108,681
------------
MEXICO -- 8.2%
Cemex S.A. de C.V.-CPO 127,860 628,629
Cifra S.A. de C.V.-V ADR* 14,000 268,510
Grupo Casa Autrey S.A. de C.V. 288,000 112,485
Grupo Mexico S.A.-B 103,000 437,176
Telefonos de Mexico S.A. ADR 4,600 371,737
Transportacion Maritima Mexicana
S.A. de C.V. ADR* 37,000 161,875
Tubos de Acero de Mexico S.A. ADR* 22,000 239,250
Vitro S.A.-A 115,000 194,757
------------
2,414,419
------------
PERU -- 1.9%
Banco Wiese ADR 36,000 42,750
Credicorp, Ltd. 22,000 239,250
Southern Peru Copper Corp., Ltd. 18,000 259,875
------------
541,875
------------
PHILIPPINES -- 4.0%
Digital Telecommunications Philippines,
Inc.* 5,800,000 356,699
Metropolitan Bank & Trust Co. 48,240 481,781
Philippine Long Distance Telephone Co. ADR 11,400 343,425
------------
1,181,905
------------
See Notes to Financial Statements
69
<PAGE>
HARRIS INSIGHT FUNDS
EMERGING MARKETS
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK (CONTINUED)
POLAND -- 2.1%
Mostostal Export S.A. ADR 150,000 $ 189,255
Telekomunikacja Polska S.A. GDR* 61,000 434,625
-----------
623,880
-----------
RUSSIA -- 6.3%
Irkutskenergo ADR 30,000 148,500
Lukoil Holding ADR 13,400 530,640
Nizhegorodsvyazinform ADR* 75,000 135,000
Rostelecom ADR* 58,500 574,031
Surgutneftegaz ADR 59,700 473,719
-----------
1,861,890
-----------
SINGAPORE -- 5.6%
Asia Pulp & Paper Co., Ltd. ADR* 40,000 385,000
City Developments, Ltd. 82,000 525,002
Development Bank of Singapore, Ltd. 30,000 366,526
United Overseas Bank, Ltd. 52,000 363,472
-----------
1,640,000
-----------
SLOVAKIA -- 2.7%
Drotovna A.S.* 14,481 32,967
Nafta A.S. 3,000 35,105
Slovakofarma A.S. GDR 124,200 438,426
Slovenske Energeticke Stroja* 18,328 46,315
Slovnaft A.S. 9,200 121,478
Vychodoslovenske Zeleziarne A.S.* 30,000 122,935
-----------
797,226
-----------
SLOVENIA -- 0.7%
SKB Banka D.D. GDR 16,600 203,350
-----------
SOUTH AFRICA -- 1.9%
Sasol, Ltd. 40,000 285,368
Standard Bank Investment Corp., Ltd. 85,500 282,671
-----------
568,039
-----------
THAILAND -- 7.7%
Advanced Information Service Public Co.,
Ltd.* 36,000 488,150
Bangkok Bank Public Co., Ltd.* 178,000 666,163
Bank of Ayudhya Public Co., Ltd.* 410,000 280,754
Thai Airways International Public Co., Ltd.* 157,000 295,914
Thai Farmers Bank Public Co., Ltd.* 170,000 525,575
-----------
2,256,556
-----------
TURKEY -- 0.2%
Yapi Ve Kredi Bankasi A.S. 4,229,640 56,127
-----------
VENEZUELA -- 0.9%
Mavesa S.A. ADR 46,700 151,775
Siderurgica Venezolana Sivensa S.A.C.A.
ADR 37,966 113,887
-----------
265,662
-----------
TOTAL COMMON STOCK
(Cost $23,592,073) 28,434,276
-----------
SHARES VALUE(DAGGER)
------ -------------
CURRENCY -- 0.0%
Malaysia Ringgit (Cost $421) 1,601 $ 358
-----------
RIGHTS & WARRANTS -- 0.0%
Samsung Electronics Ltd. GDR (Cost $0) 1 0
-----------
COUPON PAR
RATE MATURITY (000)
-------- -------- ------
U.S. TREASURY OBLIGATIONS -- 4.1%
U.S. Treasury Bills
3.000% 07/08/99 $235 234,863
3.450% 07/08/99 766 765,486
4.500% 07/08/99 195 194,829
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,195,178) 1,195,178
-----------
SHARES
------
TEMPORARY INVESTMENTS -- 0.0%
Provident Institutional Funds -
TempCash
(Cost $8,801) 8,801 8,801
-----------
TOTAL INVESTMENTS -- 100.7%
(Cost $24,796,473) 29,638,613
-----------
OTHER ASSETS AND LIABILITIES -- (0.7%)
Dividends receivable and other assets 79,989
Receivable for securities sold 323,186
Receivable for capital stock sold 246,000
Payable for securities purchased (562,898)
Payable for capital stock redeemed (250,000)
Accrued expenses (53,567)
-----------
(217,290)
-----------
NET ASSETS -- 100.0%
Applicable to 3,515,428 Institutional Shares
and 22,982 N Shares of beneficial interest
outstanding, $.001 par value (Note 7) $29,421,323
===========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER INSTITUTIONAL SHARE
($29,231,034/3,515,428) $8.32
=====
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER N SHARE ($190,289/22,982) $8.28
=====
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
** Effective September 1998, the Malaysian government fixed the ringgit exchange
rate at 3.80 per $1 and suspended investors' ability to convert proceeds from
the sale of Malaysian securities into foreign currency proceeds for one year
from initial purchase, or September 1, 1998, whichever is later. Accordingly,
the Fund considers Malaysian security holdings to be illiquid and has
established a fair value of 4.47 ringgits per US dollar for the determination
of the dollar value of Malaysian holdings.
ADR -- American Depository Receipt.
GDR-- Global Depository Receipt.
See Notes to Financial Statements
70
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
MONEY MARKET FUNDS FIXED INCOME FUNDS
--------------------------------------- ----------------------------------------
SHORT/ INTERMEDIATE
GOVERNMENT MONEY TAX-EXEMPT INTERMEDIATE BOND GOVERNMENT
MONEY FUND FUND MONEY FUND FUND FUND FUND
----------- ----------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................. $11,385,831 $62,579,196 $12,279,350 $10,722,292 $6,252,421 $3,184,604
Dividends ............................ -- -- -- -- -- --
Foreign taxes withheld ............... -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Total investment income ............ 11,385,831 62,579,196 12,279,350 10,722,292 6,252,421 3,184,604
----------- ----------- ----------- ----------- ----------- ----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) ..... 249,885 1,236,871 417,035 1,172,596 612,143 338,114
Rule 12b-1 fee (Note 4) .............. 131,984 444,380 115,977 -- 16 99
Shareholder services fee (Note 4) .... 329,960 1,110,951 279,809 7,871 4,013 3,945
Transfer agency fee (Note 3) ......... 37,640 149,378 47,590 21,275 19,415 23,456
Administration fee (Note 3) .......... 197,786 1,053,741 344,292 250,896 147,252 84,248
Custodian fee (Note 3) ............... 22,282 106,872 40,965 20,208 12,246 7,299
Directors' fees and expenses ......... 7,510 40,562 14,609 6,026 2,932 1,749
Audit fee ............................ 6,113 31,524 8,874 3,889 2,642 1,330
Legal fee ............................ 2,232 11,780 4,515 1,621 914 504
Amortization of organization
expenses (Note 2f) ................. -- -- -- -- 1,981 1,991
Reports to shareholders .............. 6,968 36,872 12,012 5,069 2,850 1,574
Registration fees .................... 19,950 152,550 10,020 20,589 21,010 14,499
Miscellaneous ........................ 11,725 41,977 16,822 14,920 10,452 5,058
----------- ----------- ----------- ----------- ----------- ----------
Total expenses ..................... 1,024,035 4,417,458 1,312,520 1,524,960 837,866 483,866
----------- ----------- ----------- ----------- ----------- ----------
Less fee waivers and expense
reimbursements (Notes 3,4) ......... (111,983) (592,871) (35,180) (512,007) (268,781) (219,735)
----------- ----------- ----------- ----------- ----------- ----------
Net expenses ....................... 912,052 3,824,587 1,277,340 1,012,953 569,085 264,131
----------- ----------- ----------- ----------- ----------- ----------
NET INVESTMENT INCOME/(LOSS) ....... 10,473,779 58,754,609 11,002,010 9,709,339 5,683,336 2,920,473
----------- ----------- ----------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized
gain/(loss) from:
Investment transactions ............ (112,283) (16,932) -- (1,788,997) (732,471) (396,768)
Futures contracts .................. -- -- -- 2,593 (646,563) (110,870)
Foreign currency transactions ...... -- -- -- -- -- --
Net change in unrealized appreciation/
(depreciation) on:
Investments ........................ -- -- -- (8,523,568) (6,544,421) (4,006,400)
Futures contracts .................. -- -- -- (263,703) 7,383 (85,039)
Foreign currency transactions ...... -- -- -- -- -- --
----------- ----------- ----------- ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS ....................... (112,283) (16,932) -- (10,573,675) (7,916,072) (4,599,077)
----------- ----------- ----------- ------------ ----------- -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ...................... $10,361,496 $58,737,677 $11,002,010 $ (864,336) $(2,232,736) $(1,678,604)
=========== =========== =========== ============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS EQUITY FUNDS
---------------------------------------- ------------------------------------------------
INTERMEDIATE CONVERTIBLE EQUITY SMALL-CAP
TAX-EXEMPT TAX-EXEMPT SECURITIES EQUITY INCOME GROWTH OPPORTUNITY
FUND FUND FUND FUND FUND FUND FUND
------------ ----------- ----------- ----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................. $ 4,994,828 $ 4,189,816 $ 397,681 $ 287,271 $ 116,512 $ 101,862 $ 276,512
Dividends ............................ -- -- 719,171 4,679,631 539,108 691,423 914,636
Foreign taxes withheld ............... -- -- -- -- -- -- --
----------- ----------- ----------- ----------- ---------- ----------- -----------
Total investment income ............ 4,994,828 4,189,816 1,116,852 4,966,902 655,620 793,285 1,191,148
----------- ----------- ----------- ----------- ---------- ----------- -----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) ..... 648,649 501,064 166,558 2,866,001 247,552 735,107 1,489,863
Rule 12b-1 fee (Note 4) .............. -- -- -- 77 158 362 8
Shareholder services fee (Note 4) .... 2,509 1,314 510 33,889 5,430 9,001 5,494
Transfer agency fee (Note 3) ......... 10,892 8,791 5,700 61,158 13,135 20,991 23,012
Administration fee (Note 3) .......... 161,860 124,830 35,631 618,266 59,339 128,128 227,120
Custodian fee (Note 3) ............... 13,257 10,868 3,811 49,618 7,985 11,810 20,542
Directors' fees and expenses ......... 3,459 3,021 860 14,917 1,041 2,642 4,694
Audit fee ............................ 2,940 1,921 549 9,317 1,053 2,193 4,129
Legal fee ............................ 1,044 808 230 3,958 345 796 1,451
Amortization of organization
expenses (Note 2f) ................. 1,981 1,981 1,991 -- 1,981 1,981 1,981
Reports to shareholders .............. 3,272 2,527 720 12,390 1,070 2,472 4,510
Registration fees .................... 15,759 14,945 14,539 24,035 13,866 15,264 16,005
Miscellaneous ........................ 9,234 8,081 4,750 19,114 2,988 4,670 9,373
----------- ----------- ----------- ----------- ---------- ----------- -----------
Total expenses ..................... 874,856 680,151 235,849 3,712,740 355,943 935,417 1,808,182
----------- ----------- ----------- ----------- ---------- ----------- -----------
Less fee waivers and expense
reimbursements (Notes 3,4) ......... (7,482) (10,752) (16,434) (11,893) (21,465) (27,590) (14,845)
----------- ----------- ----------- ----------- ---------- ----------- -----------
Net expenses ....................... 867,374 669,399 219,415 3,700,847 334,478 907,827 1,793,337
----------- ----------- ----------- ----------- ---------- ----------- -----------
NET INVESTMENT INCOME/(LOSS) ....... 4,127,454 3,520,417 897,437 1,266,055 321,142 (114,542) (602,189)
----------- ----------- ----------- ----------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized
gain/(loss) from:
Investment transactions ............ 65,264 42,504 558,559 60,263,713 1,414,812 7,200,452 7,441,994
Futures contracts .................. -- -- -- -- -- -- --
Foreign currency transactions ...... -- -- -- -- -- -- --
Net change in unrealized appreciation/
(depreciation) on:
Investments ........................ (6,282,026) (6,199,675) 2,959,556 (40,572,581) 4,196,768 6,893,815 23,069,016
Futures contracts .................. -- -- -- -- -- -- --
Foreign currency transactions ...... -- -- -- -- -- -- --
----------- ----------- ----------- ----------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS ....................... (6,216,762) (6,157,171) 3,518,115 19,691,132 5,611,580 14,094,267 30,511,010
----------- ----------- ----------- ----------- ---------- ----------- -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ...................... $(2,089,308) $(2,636,754) $ 4,415,552 $20,957,187 $5,932,722 $13,979,725 $29,908,821
=========== =========== =========== =========== ========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
----------------------------------------------------------------
SMALL-CAP EMERGING
VALUE INDEX BALANCED INTERNATIONAL MARKETS
FUND FUND FUND FUND FUND
---------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................. $ 136,612 $ 503,438 $ 854,535 $ 154,682 $ 23,018
Dividends ............................ 810,505 2,648,706 176,344 3,891,668 235,325
Foreign taxes withheld ............... -- -- -- (499,948) (23,497)
----------- ----------- ---------- ----------- ----------
Total investment income ............ 947,117 3,152,144 1,030,879 3,546,402 234,846
----------- ----------- ---------- ----------- ----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) ..... 532,912 520,275 166,605 1,126,454 144,303
Rule 12b-1 fee (Note 4) .............. -- -- 64 1 --
Shareholder services fee (Note 4) .... 731 20,788 3,215 2,943 131
Transfer agency fee (Note 3) ......... 8,561 31,290 24,948 19,063 1,386
Administration fee (Note 3) .......... 99,565 307,451 48,398 172,262 17,684
Custodian fee (Note 3) ............... 11,669 30,959 15,441 77,544 17,065
Directors' fees and expenses ......... 1,929 6,550 989 3,576 317
Audit fee ............................ 2,015 5,770 655 2,780 369
Legal fee ............................ 645 2,034 269 1,050 115
Amortization of organization
expenses (Note 2f) ................. 1,991 1,981 1,991 1,981 --
Reports to shareholders .............. 2,016 4,899 840 3,248 351
Registration fees .................... 18,272 9,884 15,004 21,102 15,609
Miscellaneous ........................ 4,019 17,720 9,032 14,982 10,497
----------- ----------- ---------- ----------- ----------
Total expenses ..................... 684,325 959,601 287,451 1,446,986 207,827
----------- ----------- ---------- ----------- ----------
Less fee waivers and expense
reimbursements (Notes 3,4) ......... (24,116) (2,318) (39,817) (10,572) (5,145)
----------- ----------- ---------- ----------- ----------
Net expenses ....................... 660,209 957,283 247,634 1,436,414 202,682
----------- ----------- ---------- ----------- ----------
NET INVESTMENT INCOME/(LOSS) ....... 286,908 2,194,861 783,245 2,109,988 32,164
----------- ----------- ---------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized
gain/(loss) from:
Investment transactions ............ 3,246,769 3,004,070 1,711,723 6,886,747 (616,378)
Futures contracts .................. -- 1,015,469 (64,718) -- --
Foreign currency transactions ...... -- -- -- (333,133) (13,303)
Net change in unrealized appreciation/
(depreciation) on:
Investments ........................ (4,763,236) 42,661,229 (2,148,797) 26,157,525 9,111,941
Futures contracts .................. -- 247,575 1,039 -- --
Foreign currency transactions ...... -- -- -- (130,241) (291)
----------- ----------- ---------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS ....................... (1,516,467) 46,928,343 (500,753) 32,580,898 8,481,969
----------- ----------- ---------- ----------- ----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ...................... $(1,229,559) $49,123,204 $ 282,492 $34,690,886 $8,514,133
=========== =========== ========== =========== ==========
</TABLE>
See Notes to Financial Statements
72 & 73
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
MONEY MARKET FUNDS FIXED INCOME FUNDS
---------------------------------------------- ----------------------------
SHORT/
GOVERNMENT MONEY TAX-EXEMPT INTERMEDIATE BOND
MONEY FUND FUND MONEY FUND FUND FUND
------------ -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ............................... $ 10,473,779 $ 58,754,609 $ 11,002,010 $ 9,709,339 $ 5,683,336
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ......................... (112,283) (16,932) -- (1,786,404) (1,379,034)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ......................... -- -- -- (8,787,271) (6,537,038)
------------ -------------- ------------ ------------ ------------
Increase/(decrease) in net
assets from operations ............... 10,361,496 58,737,677 11,002,010 (864,336) (2,232,736)
------------ -------------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ................. (4,661,164) (38,294,880) (8,139,950) (9,534,186) (5,589,419)
N Shares ............................. (5,815,363) (20,477,801) (2,888,514) (175,153) (93,537)
A Shares ............................. -- -- -- -- (380)
------------ -------------- ------------ ------------ ------------
Total distributions from net
investment income .................... (10,476,527) (58,772,681) (11,028,464) (9,709,339) (5,683,336)
------------ -------------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ................. 26,961,289 (59,556,089) (115,095,423) (1,070,323) 9,730,096
N Shares ............................. 13,811,283 52,296,313 10,149,264 3,569,292 1,314,998
A Shares ............................. -- -- -- -- 19,209
------------ -------------- ------------ ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions ......................... 40,772,572 (7,259,776) (104,946,159) 2,498,969 11,064,303
------------ -------------- ------------ ------------ ------------
Total increase/(decrease) in
net assets ........................... 40,657,541 (7,294,780) (104,972,613) (8,074,706) 3,148,231
NET ASSETS:
Beginning of period .................... 410,880,087 2,269,382,968 810,867,876 341,672,701 186,397,437
------------ -------------- ------------ ------------ ------------
End of period .......................... $451,537,628 $2,262,088,188 $705,895,263 $333,597,995 $189,545,668
============ ============== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS EQUITY FUNDS
---------------------------------------------------------- --------------------------
INTERMEDIATE INTERMEDIATE CONVERTIBLE EQUITY
GOVERNMENT TAX-EXEMPT TAX-EXEMPT SECURITIES EQUITY INCOME
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ............................... $ 2,920,473 $ 4,127,454 $ 3,520,417 $ 897,437 $ 1,266,055 $ 321,142
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ......................... (507,638) 65,264 42,504 558,559 60,263,713 1,414,812
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ......................... (4,091,439) (6,282,026) (6,199,675) 2,959,556 (40,572,581) 4,196,768
------------ ------------ ------------ ----------- ------------ -----------
Increase/(decrease) in net
assets from operations ............... (1,678,604) (2,089,308) (2,636,754) 4,415,552 20,957,187 5,932,722
------------ ------------ ------------ ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ................. (2,832,950) (4,091,077) (3,499,053) (847,328) (1,342,354) (308,873)
N Shares ............................. (85,384) (36,377) (21,364) (6,879) (19,493) (16,043)
A Shares ............................. (2,139) -- -- -- (9) (541)
------------ ------------ ------------ ----------- ------------ -----------
Total distributions from net
investment income .................... (2,920,473) (4,127,454) (3,520,417) (854,207) (1,361,856) (325,457)
------------ ------------ ------------ ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ................. 800,664 (18,740,903) (3,688,737) (4,514,906) (73,432,813) 4,436,177
N Shares ............................. 2,597,999 2,385,022 1,029,392 (20,436) (2,104,289) 872,628
A Shares ............................. 199,420 -- -- -- 94,150 253,578
------------ ------------ ------------ ----------- ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ......................... 3,598,083 (16,355,881) (2,659,345) (4,535,342) (75,442,952) 5,562,383
------------ ------------ ------------ ----------- ------------ -----------
Total increase/(decrease) in
net assets ........................... (1,000,994) (22,572,643) (8,816,516) (973,997) (55,847,621) 11,169,648
NET ASSETS:
Beginning of period .................... 105,288,316 226,987,114 169,969,488 49,805,258 870,168,813 65,931,514
------------ ------------ ------------ ----------- ------------ -----------
End of period .......................... $104,287,322 $204,414,471 $161,152,972 $48,831,261 $814,321,192 $77,101,162
============ ============ ============ =========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
----------------------------------------------------------------------------------------
SMALL-CAP SMALL-CAP
GROWTH OPPORTUNITY VALUE INDEX BALANCED INTERNATIONAL
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ............................... $ (114,542) $ (602,189) $ 286,908 $ 2,194,861 $ 783,245 $ 2,109,988
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ......................... 7,200,452 7,441,994 3,246,769 4,019,539 1,647,005 6,553,614
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ......................... 6,893,815 23,069,016 (4,763,236) 42,908,804 (2,147,758) 26,027,284
------------ ------------ ------------ ------------ ----------- ------------
Increase/(decrease) in net
assets from operations ............... 13,979,725 29,908,821 (1,229,559) 49,123,204 282,492 34,690,886
------------ ------------ ------------ ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ................. -- -- -- (2,063,293) (721,109) --
N Shares ............................. -- -- -- (68,067) (32,770) --
A Shares ............................. -- -- -- -- (536) --
------------ ------------ ------------ ------------ ----------- ------------
Total distributions from net
investment income .................... -- -- -- (2,131,360) (754,415) --
------------ ------------ ------------ ------------ ----------- ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ................. 12,030,959 6,827,285 (7,109,414) 84,638,750 (3,252,951) 6,935,257
N Shares ............................. 392,986 (770,914) 11,940 4,271,628 425,071 41,511
A Shares ............................. 434,407 17,423 -- -- 76,593 482
------------ ------------ ------------ ------------ ----------- ------------
Increase/(decrease) in net
assets from capital share
transactions ......................... 12,858,352 6,073,794 (7,097,474) 88,910,378 (2,751,287) 6,977,250
------------ ------------ ------------ ------------ ----------- ------------
Total increase/(decrease) in
net assets ........................... 26,838,077 35,982,615 (8,327,033) 135,902,222 (3,223,210) 41,668,136
NET ASSETS:
Beginning of period .................... 152,419,801 301,751,109 144,165,709 376,294,662 58,355,171 196,104,321
------------ ------------ ------------ ------------ ----------- ------------
End of period .......................... $179,257,878 $337,733,724 $135,838,676 $512,196,884 $55,131,961 $237,772,457
============ ============ ============ ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-----------
EMERGING
MARKETS
FUND
-----------
<S> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ............................... $ 32,164
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ......................... (629,681)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ......................... 9,111,650
-----------
Increase/(decrease) in net
assets from operations ............... 8,514,133
-----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ................. --
N Shares ............................. --
A Shares ............................. --
-----------
Total distributions from net
investment income .................... --
-----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ................. 1,683,690
N Shares ............................. 89,772
A Shares ............................. --
-----------
Increase/(decrease) in net
assets from capital share
transactions ......................... 1,773,462
-----------
Total increase/(decrease) in
net assets ........................... 10,287,595
NET ASSETS:
Beginning of period .................... 19,133,728
-----------
End of period .......................... $29,421,323
===========
</TABLE>
See Notes to Financial Statements
74 & 75
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONEY MARKET FUNDS FIXED INCOME FUNDS
---------------------------------------------- -------------------------------
SHORT/
GOVERNMENT MONEY TAX-EXEMPT INTERMEDIATE BOND
MONEY FUND FUND MONEY FUND FUND FUND
------------ -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ............................... $ 19,791,893 $ 100,470,937 $ 27,605,102 $ 19,308,141 $ 10,034,741
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ......................... 2,820 12,255 24,082 2,908,410 1,428,165
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ......................... -- -- -- 24,109 121,675
------------ -------------- ------------ ------------ ------------
Increase/(decrease) in net
assets from operations ............... 19,794,713 100,483,192 27,629,184 22,240,660 11,584,581
------------ -------------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ................. (6,041,082) (62,505,055) (21,145,766) (19,005,088) (9,928,728)
N Shares ............................. (13,750,811) (37,965,882) (6,459,336) (304,649) (106,013)
------------ -------------- ------------ ------------ ------------
Total distributions from net
investment income .................... (19,791,893) (100,470,937) (27,605,102) (19,309,737) (10,034,741)
------------ -------------- ------------ ------------ ------------
Net realized gains on investments:
Institutional Shares ................. -- -- -- (187,644) (1,788,220)
N Shares ............................. -- -- -- (2,526) (24,732)
------------ -------------- ------------ ------------ ------------
Total distributions from net
realized gains ....................... -- -- -- (190,170) (1,812,952)
------------ -------------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares 98,313,647 363,757,602 108,749,809 45,429,042 43,637,130
N Shares ............................. 999,760 199,717,848 (18,963,018) (1,305,356) 1,640,511
------------ -------------- ------------ ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions ......................... 99,313,407 563,475,450 89,786,791 44,123,686 45,277,641
------------ -------------- ------------ ------------ ------------
Total increase/(decrease) in
net assets ........................... 99,316,227 563,487,705 89,810,873 46,864,439 45,014,529
NET ASSETS:
Beginning of period .................... 311,563,860 1,705,895,263 721,057,003 294,808,262 141,382,908
------------ -------------- ------------ ------------ ------------
End of period .......................... $410,880,087 $2,269,382,968 $810,867,876 $341,672,701 $186,397,437
============ ============== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS EQUITY FUNDS
---------------------------------------------------------- --------------------------
INTERMEDIATE INTERMEDIATE CONVERTIBLE EQUITY
GOVERNMENT TAX-EXEMPT TAX-EXEMPT SECURITIES EQUITY INCOME
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ............................... $ 6,103,445 $ 7,706,236 $ 7,432,575 $ 2,108,992 $ 5,625,779 $ 645,065
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ......................... 927,189 2,440,207 2,660,619 3,966,042 120,355,079 1,997,487
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ......................... 705,013 (737,737) (1,763,510) (7,187,746) (13,198,885) 8,267,199
------------ ------------ ------------ ----------- ------------ -----------
Increase/(decrease) in net
assets from operations ............... 7,735,647 9,408,706 8,329,684 (1,112,712) 112,781,973 10,909,751
------------ ------------ ------------ ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ................. (6,033,054) (7,676,693) (7,400,695) (2,120,236) (5,466,932) (609,709)
N Shares ............................. (71,099) (29,543) (31,880) (12,532) (88,622) (24,897)
------------ ------------ ------------ ----------- ------------ -----------
Total distributions from net
investment income .................... (6,104,153) (7,706,236) (7,432,575) (2,132,768) (5,555,554) (634,606)
------------ ------------ ------------ ----------- ------------ -----------
Net realized gains on investments:
Institutional Shares ................. (988,975) (2,830,031) (3,079,610) (5,044,777) (130,433,776) (1,589,832)
N Shares ............................. (19,423) (11,893) (16,541) (39,249) (4,124,381) (93,017)
------------ ------------ ------------ ----------- ------------ -----------
Total distributions from net
realized gains ....................... (1,008,398) (2,841,924) (3,096,151) (5,084,026) (134,558,157) (1,682,849)
------------ ------------ ------------ ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ................. 3,180,402 34,213,507 (8,622,818) (1,721,894) 22,196,934 13,554,788
N Shares ............................. 1,409,794 259,648 275,998 387,694 11,615,123 2,119,058
------------ ------------ ------------ ----------- ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ......................... 4,590,196 34,473,155 (8,346,820) (1,334,200) 33,812,057 15,673,846
------------ ------------ ------------ ----------- ------------ -----------
Total increase/(decrease) in
net assets ........................... 5,213,292 33,333,701 (10,545,862) (9,663,706) 6,480,319 24,266,142
NET ASSETS:
Beginning of period .................... 100,075,024 193,653,413 180,515,350 59,468,964 863,688,494 41,665,372
------------ ------------ ------------ ----------- ------------ -----------
End of period .......................... $105,288,316 $226,987,114 $169,969,488 $49,805,258 $870,168,813 $65,931,514
============ ============ ============ =========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
----------------------------------------------------------------------------------------
SMALL-CAP SMALL-CAP
GROWTH OPPORTUNITY VALUE INDEX BALANCED INTERNATIONAL
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ............................... $ 52,778 $ (806,520) $ 621,844 $ 3,790,469 $ 2,006,211 $ 3,007,536
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ......................... 10,398,983 (2,724,319) 1,262,177 17,576,723 3,788,742 (8,150,129)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ......................... 19,871,546 4,631,841 (4,486,231) 61,514,412 (662,244) (4,212,689)
------------ ------------ ------------ ------------ ----------- ------------
Increase/(decrease) in net
assets from operations ............... 30,323,307 1,101,002 (2,602,210) 82,881,604 5,132,709 (9,355,282)
------------ ------------ ------------ ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ................. (46,318) -- (641,087) (3,691,322) (1,966,524) (2,471,063)
N Shares ............................. -- -- (1,439) (89,257) (56,479) (33,387)
------------ ------------ ------------ ------------ ----------- ------------
Total distributions from net
investment income .................... (46,318) -- (642,526) (3,780,579) (2,023,003) (2,504,450)
------------ ------------ ------------ ------------ ----------- ------------
Net realized gains on investments:
Institutional Shares ................. (10,660,807) (1,166,482) (3,192,531) (17,251,334) (4,564,004) --
N Shares ............................. (532,486) (17,416) (16,897) (625,478) (174,321) --
------------ ------------ ------------ ------------ ----------- ------------
Total distributions from net
realized gains ....................... (11,193,293) (1,183,898) (3,209,428) (17,876,812) (4,738,325) --
------------ ------------ ------------ ------------ ----------- ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ................. 17,124,303 22,929,255 50,070,733 10,993,666 (11,873,103) 34,176,338
N Shares ............................. 4,305,325 2,066,357 440,834 4,939,039 1,741,964 364,280
------------ ------------ ------------ ------------ ----------- ------------
Increase/(decrease) in net
assets from capital share
transactions ......................... 21,429,628 24,995,612 50,511,567 15,932,705 (10,131,139) 34,540,618
------------ ------------ ------------ ------------ ----------- ------------
Total increase/(decrease) in
net assets ........................... 40,513,324 24,912,716 44,057,403 77,156,918 (11,759,758) 22,680,886
NET ASSETS:
Beginning of period .................... 111,906,477 276,838,393 100,108,306 299,137,744 70,114,929 173,423,435
------------ ------------ ------------ ------------ ----------- ------------
End of period .......................... $152,419,801 $301,751,109 $144,165,709 $376,294,662 $58,355,171 $196,104,321
============ ============ ============ ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-------------
EMERGING
MARKETS
FUND
-----------
<S> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ............................... $ 201,940
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ......................... (5,420,986)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ......................... (1,901,422)
-----------
Increase/(decrease) in net
assets from operations ............... (7,120,468)
-----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ................. (49,109)
N Shares ............................. --
-----------
Total distributions from net
investment income .................... (49,109)
-----------
Net realized gains on investments:
Institutional Shares ................. --
N Shares ............................. --
-----------
Total distributions from net
realized gains ....................... --
-----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ................. 8,164,295
N Shares ............................. 19,533
-----------
Increase/(decrease) in net
assets from capital share
transactions ......................... 8,183,828
-----------
Total increase/(decrease) in
net assets ........................... 1,014,251
NET ASSETS:
Beginning of period .................... 18,119,477
-----------
End of period .......................... $19,133,728
===========
</TABLE>
See Notes to Financial Statements
76 & 77
<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
06/30/99 12/31/98 06/30/99 12/31/98 06/30/99 12/31/98
------------- --------------- --------------- --------------- ------------- ---------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL SHARES:
Sold ........................... $ 278,679,042 $ 474,602,020 $ 4,321,289,312 $ 6,077,554,330 $ 439,216,749 $ 1,224,139,829
Issued as reinvestment of
dividends .................... 356,330 681,351 5,020,318 4,855,945 184,386 38,515
Redeemed ....................... (252,074,083) (376,969,724) (4,385,865,719) (5,718,652,673) (554,496,558) (1,115,428,535)
------------- --------------- --------------- --------------- ------------- ---------------
Net increase/(decrease) ........ $ 26,961,289 $ 98,313,647 $ (59,556,089) $ 363,757,602 $(115,095,423) $ 108,749,809
============= =============== =============== =============== ============= ===============
N SHARES :
Sold ........................... $ 833,204,458 $ 1,792,833,704 $ 1,865,257,290 $ 3,255,287,012 $ 258,550,612 $ 421,214,364
Issued as reinvestment of
dividends .................... 4,250,269 9,532,140 17,057,577 28,923,116 2,270,497 4,957,489
Redeemed ....................... (823,643,444) (1,801,366,084) (1,830,018,554) (3,084,492,280) (250,671,845) (445,134,871)
------------- --------------- --------------- --------------- ------------- ---------------
Net increase/(decrease) ........ $ 13,811,283 $ 999,760 $ 52,296,313 $ 199,717,848 $ 10,149,264 $ (18,963,018)
============= =============== =============== =============== ============= ===============
</TABLE>
See Notes to Financial Statements
78
<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 YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/99 12/31/98 06/30/99 12/31/98 06/30/99 12/31/98
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold ............................... $ 57,887,575 $ 98,262,177 $ 37,266,804 $ 62,185,154 $ 10,911,495 $ 29,218,220
Issued as reinvestment of dividends 1,288,439 2,067,037 2,443,477 5,589,291 2,557,269 6,595,979
Redeemed ........................... (60,246,337) (54,900,172) (29,980,185) (24,137,315) (12,668,100) (32,633,797)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ............ $ (1,070,323) $ 45,429,042 $ 9,730,096 $ 43,637,130 $ 800,664 $ 3,180,402
============ ============ ============ ============ ============ ============
N SHARES:
Sold ............................... $ 7,747,037 $ 3,387,231 $ 1,712,858 $ 2,490,267 $ 2,693,856 $ 1,369,151
Issued as reinvestment of dividends 124,754 232,605 65,928 75,997 80,710 87,003
Redeemed ........................... (4,302,499) (4,925,192) (463,788) (925,753) (176,567) (46,360)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ............ $ 3,569,292 $ (1,305,356) $ 1,314,998 $ 1,640,511 $ 2,597,999 $ 1,409,794
============ ============ ============ ============ ============ ============
A SHARES:
Sold ............................... $ -- $ -- $ 18,829 $ -- $ 226,152 $ --
Issued as reinvestment of dividends -- -- 380 -- 2,132 --
Redeemed ........................... -- -- -- -- (28,864) --
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ............ $ -- $ -- $ 19,209 $ -- $ 199,420 $ --
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold ............................... 5,687,663 9,550,792 3,714,947 6,064,826 670,090 1,760,474
Issued as reinvestment of dividends 127,206 200,903 244,468 545,444 157,694 396,620
Redeemed ........................... (5,918,942) (5,330,155) (2,995,329) (2,351,634) (780,444) (1,954,680)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ............ (104,073) 4,421,540 964,086 4,258,636 47,340 202,414
============ ============ ============ ============ ============ ============
N SHARES:
Sold ............................... 758,653 329,377 170,031 242,849 166,082 82,328
Issued as reinvestment of dividends 12,336 22,636 6,613 7,413 4,993 5,220
Redeemed ........................... (422,334) (479,744) (46,469) (90,329) (11,002) (2,786)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ............ 348,655 (127,731) 130,175 159,933 160,073 84,762
============ ============ ============ ============ ============ ============
A SHARES:
Sold ............................... -- -- 1,865 -- 13,855 --
Issued as reinvestment of dividends -- -- 38 -- 133 --
Redeemed ........................... -- -- -- -- (1,775) --
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ............ -- -- 1,903 -- 12,213 --
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
-------------------------------------------------------------------------------------------
INTERMEDIATE CONVERTIBLE
TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND
---------------------------- ---------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/99 12/31/98 06/30/99 12/31/98 06/30/99 12/31/98
------------ ------------ ------------ ------------ ----------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold ............................... $ 15,785,641 $ 70,456,250 $ 7,669,000 $ 18,982,201 $ 1,464,274 $ 5,672,247
Issued as reinvestment of dividends 39,433 544,842 41,604 543,487 843,054 7,118,875
Redeemed ........................... (34,565,977) (36,787,585) (11,399,341) (28,148,506) (6,822,234) (14,513,016)
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ............ $(18,740,903) $ 34,213,507 $ (3,688,737) $ (8,622,818) $(4,514,906) $ (1,721,894)
============ ============ ============ ============ =========== ============
N SHARES:
Sold ............................... $ 4,435,437 $ 1,323,118 $ 2,591,865 $ 1,163,477 $ 3,547 $ 414,463
Issued as reinvestment of dividends 26,375 26,278 10,773 22,861 6,017 44,309
Redeemed ........................... (2,076,790) (1,089,748) (1,573,246) (910,340) (30,000) (71,078)
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ............ $ 2,385,022 $ 259,648 $ 1,029,392 $ 275,998 $ (20,436) $ 387,694
============ ============ ============ ============ =========== ============
A SHARES:
Sold ............................... $ -- $ -- $ -- $ -- $ -- $ --
Issued as reinvestment of dividends -- -- -- -- -- --
Redeemed ........................... -- -- -- -- -- --
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ............ $ -- $ -- $ -- $ -- $ -- $ --
============ ============ ============ ============ =========== ============
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold ............................... 1,472,973 6,548,230 738,620 1,802,796 59,125 203,052
Issued as reinvestment of dividends 3,698 50,759 4,037 51,949 33,861 283,550
Redeemed ........................... (3,238,972) (3,425,001) (1,103,519) (2,675,429) (275,927) (522,748)
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ............ (1,762,301) 3,173,988 (360,862) (820,684) (182,941) (36,146)
============ ============ ============ ============ =========== ============
N SHARES:
Sold ............................... 413,555 123,047 254,859 110,353 142 14,664
Issued as reinvestment of dividends 2,493 2,446 1,049 2,177 242 1,808
Redeemed ........................... (194,227) (101,319) (154,947) (86,174) (1,211) (2,530)
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ............ 221,821 24,174 100,961 26,356 (827) 13,942
============ ============ ============ ============ =========== ============
A SHARES:
Sold ............................... -- -- -- -- -- --
Issued as reinvestment of dividends -- -- -- -- -- --
Redeemed ........................... -- -- -- -- -- --
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ............ -- -- -- -- -- --
============ ============ ============ ============ =========== ============
</TABLE>
See Notes to Financial Statements
80 & 81
<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
06/30/99 12/31/98 06/30/99 12/31/98 06/30/99 12/31/98
------------- ------------- ----------- ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold .................................. $ 31,126,646 $ 107,058,873 $ 9,057,988 $16,273,336 $ 19,378,217 $ 24,726,605
Issued as reinvestment of
dividends ........................... 412,279 59,860,296 37,941 456,240 -- 4,407,089
Redeemed .............................. (104,971,738) (144,722,235) (4,659,752) (3,174,788) (7,347,258) (12,009,391)
------------- ------------- ----------- ----------- ------------ ------------
Net increase/(decrease) ............... $ (73,432,813) $ 22,196,934 $ 4,436,177 $13,554,788 $ 12,030,959 $ 17,124,303
============= ============= =========== =========== ============ ============
N SHARES:
Sold .................................. $ 20,607,434 $ 47,707,142 $ 1,261,604 $ 2,658,901 $ 10,759,504 $ 20,830,182
Issued as reinvestment of
dividends ........................... 13,299 3,481,957 14,422 106,802 -- 428,210
Redeemed .............................. (22,725,022) (39,573,976) (403,398) (646,645) (10,366,518) (16,953,067)
------------- ------------- ----------- ----------- ------------ ------------
Net increase/(decrease) ............... $ (2,104,289) $ 11,615,123 $ 872,628 $ 2,119,058 $ 392,986 $ 4,305,325
============= ============= =========== =========== ============ ============
A SHARES:
Sold .................................. $ 94,142 $ -- $ 253,134 $ -- $ 468,883 $ --
Issued as reinvestment of
dividends ........................... 8 -- 542 -- -- --
Redeemed .............................. -- -- (98) -- (34,476) --
------------- ------------- ----------- ----------- ------------ ------------
Net increase/(decrease) ............... $ 94,150 $ -- $ 253,578 $ -- $ 434,407 $ --
============= ============= =========== =========== ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold .................................. 1,830,237 6,026,791 454,497 904,751 707,442 1,017,596
Issued as reinvestment of
dividends ........................... 24,449 3,488,559 1,894 24,434 -- 171,897
Redeemed .............................. (6,178,111) (8,209,390) (233,438) (177,434) (269,112) (489,520)
------------- ------------- ----------- ----------- ------------ ------------
Net increase/(decrease) ............... (4,323,425) 1,305,960 222,953 751,751 438,330 699,973
============= ============= =========== =========== ============ ============
N SHARES:
Sold .................................. 1,219,815 2,692,062 63,287 148,486 398,264 837,319
Issued as reinvestment of
dividends ........................... 788 203,732 720 5,753 -- 16,757
Redeemed .............................. (1,341,074) (2,204,864) (20,012) (36,833) (382,624) (683,516)
------------- ------------- ----------- ----------- ------------ ------------
Net increase/(decrease) ............... (120,471) 690,930 43,995 117,406 15,640 170,560
============= ============= =========== =========== ============ ============
A SHARES:
Sold .................................. 5,559 -- 12,470 -- 17,095 --
Issued as reinvestment of
dividends ........................... 1 -- 27 -- -- --
Redeemed .............................. -- -- (5) -- (1,229) --
------------- ------------- ----------- ----------- ------------ ------------
Net increase/(decrease) ............... 5,560 -- 12,492 -- 15,866 --
============= ============= =========== =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
---------------------------------------------------------------
SMALL-CAP SMALL-CAP
OPPORTUNITY VALUE
FUND FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
06/30/99 12/31/98 06/30/99 12/31/98
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold .................................. $ 48,450,382 $ 70,401,482 $ 11,549,473 $ 65,891,159
Issued as reinvestment of
dividends ........................... -- 644,720 -- 3,337,416
Redeemed .............................. $(41,623,097) (48,116,947) (18,658,887) (19,157,842)
------------ ------------ ------------ ------------
Net increase/(decrease) ............... $ 6,827,285 $ 22,929,255 $ (7,109,414) $ 50,070,733
============ ============ ============ ============
N SHARES:
Sold .................................. $ 25,636,975 $ 46,956,439 $ 278,786 $ 697,922
Issued as reinvestment of
dividends ........................... -- 11,681 -- 18,194
Redeemed .............................. (26,407,889) (44,901,763) (266,846) (275,282)
------------ ------------ ------------ ------------
Net increase/(decrease) ............... $ (770,914) $ 2,066,357 $ 11,940 $ 440,834
============ ============ ============ ============
A SHARES:
Sold .................................. $ 25,395 $ -- $ -- $ --
Issued as reinvestment of
dividends ........................... -- -- -- --
Redeemed .............................. (7,972) -- -- --
------------ ------------ ------------ ------------
Net increase/(decrease) ............... $ 17,423 $ -- $ -- $ --
============ ============ ============ ============
- -----------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold .................................. 2,722,613 4,046,918 402,012 2,156,720
Issued as reinvestment of
dividends ........................... -- 33,302 -- 97,119
Redeemed .............................. (2,336,144) (2,956,250) (646,997) (600,967)
------------ ------------ ------------ ------------
Net increase/(decrease) ............... 386,469 1,123,970 (244,985) 1,652,872
============ ============ ============ ============
N SHARES:
Sold .................................. 1,492,155 2,880,683 9,554 20,368
Issued as reinvestment of
dividends ........................... -- 606 -- 526
Redeemed .............................. (1,538,263) (2,738,838) (9,525) (8,868)
------------ ------------ ------------ ------------
Net increase/(decrease) ............... (46,108) 142,451 29 12,026
============ ============ ============ ============
A SHARES:
Sold .................................. 1,423 -- -- --
Issued as reinvestment of
dividends ........................... -- -- -- --
Redeemed .............................. (440) -- -- --
------------ ------------ ------------ ------------
Net increase/(decrease) ............... 983 -- -- --
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-----------------------------------------------------------
INDEX BALANCED
FUND FUND
---------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
06/30/99 12/31/98 06/30/99 12/31/98
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold .................................. $119,639,789 $ 56,739,210 $ 3,185,943 $ 8,051,050
Issued as reinvestment of
dividends ........................... 1,074,538 11,324,663 720,963 6,530,108
Redeemed .............................. (36,075,577) (57,070,207) (7,159,857) (26,454,261)
------------ ------------ ----------- ------------
Net increase/(decrease) ............... $ 84,638,750 $ 10,993,666 $(3,252,951) $(11,873,103)
============ ============ =========== ============
N SHARES:
Sold .................................. $ 6,410,499 $ 8,005,096 $ 1,654,500 $ 1,756,331
Issued as reinvestment of
dividends ........................... 57,326 575,857 32,770 230,800
Redeemed .............................. (2,196,197) (3,641,914) (1,262,199) (245,167)
------------ ------------ ----------- ------------
Net increase/(decrease) ............... $ 4,271,628 $ 4,939,039 $ 425,071 $ 1,741,964
============ ============ =========== ============
A SHARES:
Sold .................................. $ 76,057 $ --
Issued as reinvestment of
dividends ........................... 536 --
Redeemed .............................. -- --
----------- ------------
Net increase/(decrease) ............... $ 76,593 $ --
=========== ============
- -----------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold .................................. 3,956,228 2,172,445 222,906 527,780
Issued as reinvestment of
dividends ........................... 35,513 413,390 51,265 446,869
Redeemed .............................. (1,204,237) (2,222,548) (501,241) (1,744,530)
------------ ------------ ----------- ------------
Net increase/(decrease) ............... 2,787,504 363,287 (227,070) (769,881)
============ ============ =========== ============
N SHARES:
Sold .................................. 214,172 310,345 116,189 115,400
Issued as reinvestment of
dividends ........................... 1,895 21,022 2,330 15,932
Redeemed .............................. (72,484) (142,365) (89,207) (16,971)
------------ ------------ ----------- ------------
Net increase/(decrease) ............... 143,583 189,002 29,312 114,361
============ ============ =========== ============
A SHARES:
Sold .................................. 5,204 --
Issued as reinvestment of
dividends ........................... 38 --
Redeemed .............................. -- --
----------- ------------
Net increase/(decrease) ............... 5,242 --
=========== ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-------------------------------------------------------------
EMERGING
INTERNATIONAL MARKETS
FUND FUND
----------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
06/30/99 12/31/98 06/30/99 12/31/98
------------- ------------ ----------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold .................................. $ 50,201,194 $100,158,674 $ 2,746,181 $ 9,517,265
Issued as reinvestment of
dividends ........................... -- 1,121,898 -- 44,300
Redeemed .............................. (43,265,937) (67,104,234) (1,062,491) (1,397,270)
------------- ------------ ----------- -------------
Net increase/(decrease) ............... $ 6,935,257 $ 34,176,338 $ 1,683,690 $ 8,164,295
============= ============ =========== =============
N SHARES:
Sold .................................. $ 17,644,963 $ 23,331,527 $ 92,932 $ 103,114
Issued as reinvestment of
dividends ........................... -- 27,871 -- --
Redeemed .............................. (17,603,452) (22,995,118) (3,160) (83,581
------------- ------------ ----------- -------------
Net increase/(decrease) ............... $ 41,511 $ 364,280 $ 89,772 $ 19,533
============= ============ =========== =============
A SHARES:
Sold .................................. $ 482 $ -- $ -- $ --
Issued as reinvestment of
dividends ........................... -- -- -- --
Redeemed .............................. -- -- -- --
------------- ------------ ----------- -------------
Net increase/(decrease) ............... $ 482 $ -- $ -- $ --
============= ============ =========== =============
- -----------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold .................................. 3,838,900 7,821,444 412,689 1,372,793
Issued as reinvestment of
dividends ........................... -- 90,989 -- 7,745
Redeemed .............................. (3,264,433) (5,331,529) (147,071) (239,318
------------- ------------ ----------- -------------
Net increase/(decrease) ............... 574,467 2,580,904 265,618 1,141,220
============= ============ =========== =============
N SHARES:
Sold .................................. 1,419,114 1,842,292 12,850 13,464
Issued as reinvestment of
dividends ........................... -- 2,260 -- --
Redeemed .............................. (1,395,428) (1,807,396) (455) (14,143)
------------- ------------ ----------- -------------
Net increase/(decrease) ............... 23,686 37,156 12,395 (679)
============= ============ =========== =============
A SHARES:
Sold .................................. 41 -- -- --
Issued as reinvestment of
dividends ........................... -- -- -- --
Redeemed .............................. -- -- -- --
------------- ------------ ----------- -------------
Net increase/(decrease) ............... 41 -- -- --
============= ============ =========== =============
</TABLE>
See Notes to Financial Statements
82 & 83
<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
OF PERIOD INCOME INVESTMENTS INCOME CONTRIBUTIONS PERIOD
=====================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- ---------------------
GOVERNMENT MONEY FUND
- ---------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $1.00 $0.024 $ -- $(0.024) $ -- $1.00
12/31/98 1.00 0.053 -- (0.053) -- 1.00
12/31/97 1.00 0.053 -- (0.053) -- 1.00
12/31/96 1.00 0.051 -- (0.051) -- 1.00
12/31/95 1.00 0.056 -- (0.056) -- 1.00
05/16/94(3) to 12/31/94 1.00 0.028 -- (0.028) -- 1.00
N SHARES
01/01/99 to 06/30/99(5) $1.00 $0.022 $ -- $(0.022) $ -- $1.00
12/31/98 1.00 0.050 -- (0.050) -- 1.00
12/31/97 1.00 0.050 -- (0.050) -- 1.00
12/31/96 1.00 0.049 -- (0.049) -- 1.00
12/31/95 1.00 0.054 -- (0.054) -- 1.00
12/31/94 1.00 0.037 -- (0.037) -- 1.00
- ----------
MONEY FUND
- ----------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $1.00 $0.025 $ -- $(0.025) $ -- $1.00
12/31/98 1.00 0.055 -- (0.055) -- 1.00
12/31/97 1.00 0.055 (0.001) (0.055) 0.001 1.00
12/31/96 1.00 0.052 -- (0.052) -- 1.00
12/31/95 1.00 0.057 -- (0.057) -- 1.00
01/05/94(3) to 12/31/94 1.00 0.039 -- (0.039) -- 1.00
N SHARES
01/01/99 to 06/30/99(5) $1.00 $0.023 $ -- $(0.023) $ -- $1.00
12/31/98 1.00 0.051 -- (0.051) -- 1.00
12/31/97 1.00 0.052 (0.001) (0.052) 0.001 1.00
12/31/96 1.00 0.050 -- (0.050) -- 1.00
12/31/95 1.00 0.054 -- (0.054) -- 1.00
12/31/94 1.00 0.037 -- (0.037) -- 1.00
- ---------------------
TAX-EXEMPT MONEY FUND
- ---------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $1.00 $0.014 $ -- $(0.014) $ -- $1.00
12/31/98 1.00 0.033 -- (0.033) -- 1.00
12/31/97 1.00 0.034 -- (0.034) -- 1.00
12/31/96 1.00 0.031 -- (0.031) -- 1.00
12/31/95 1.00 0.035 -- (0.035) -- 1.00
01/05/94(3) to 12/31/94 1.00 0.025 -- (0.025) -- 1.00
N SHARES
01/01/99 to 06/30/99(5) $1.00 $0.013 $ -- $(0.013) $ -- $1.00
12/31/98 1.00 0.030 -- (0.030) -- 1.00
12/31/97 1.00 0.031 -- (0.031) -- 1.00
12/31/96 1.00 0.029 -- (0.029) -- 1.00
12/31/95 1.00 0.033 -- (0.033) -- 1.00
12/31/94 1.00 0.023 -- (0.023) -- 1.00
</TABLE>
<TABLE>
<CAPTION>
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME
TOTAL PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET
RETURN (000) ASSETS WAIVERS) ASSETS
=====================================================================================================
<S> <C> <C> <C> <C> <C>
- ---------------------
GOVERNMENT MONEY FUND
- ---------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 2.38%(2) $ 189,200 0.20%(1) 0.24%(1) 4.75%(1)
12/31/98 5.43 162,285 0.19 0.24 5.27
12/31/97 5.48 63,970 0.23 0.28 5.36
12/31/96 5.24 37,169 0.31 0.32 5.12
12/31/95 5.79 18,367 0.31 0.32 5.62
05/16/94(3) to 12/31/94 2.82(2) 9,617 0.29(1) 0.31(1) 4.52(1)
N SHARES
01/01/99 to 06/30/99(5) 2.20%(2) $ 262,338 0.55%(1) 0.59%(1) 4.40%(1)
12/31/98 5.08 248,595 0.54 0.59 4.96
12/31/97 5.17 247,594 0.53 0.63 5.05
12/31/96 5.00 206,073 0.54 0.67 4.89
12/31/95 5.51 264,426 0.57 0.67 5.36
12/31/94 3.72 229,619 0.60 0.66 3.62
- ----------
MONEY FUND
- ----------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 2.48%(2) $1,332,279 0.19%(1) 0.24%(1) 4.96%(1)
12/31/98 5.61 1,391,856 0.19 0.24 5.46
12/31/97 5.66 1,028,091 0.21 0.26 5.54
12/31/96 5.38 369,417 0.27 0.28 5.23
12/31/95 5.86 98,837 0.29 0.30 5.69
01/05/94(3) to 12/31/94 4.08(2) 31,990 0.29(1) 0.30(1) 4.79(1)
N SHARES
01/01/99 to 06/30/99(5) 2.31%(2) $ 929,809 0.54%(1) 0.59%(1) 4.61%(1)
12/31/98 5.25 877,527 0.53 0.59 5.12
12/31/97 5.35 677,804 0.51 0.61 5.23
12/31/96 5.11 461,213 0.52 0.63 5.00
12/31/95 5.58 423,588 0.56 0.65 5.42
12/31/94 3.79 530,366 0.55 0.65 3.79
- ---------------------
TAX-EXEMPT MONEY FUND
- ---------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 1.44%(2) $ 491,639 0.23%(1) 0.23%(1) 2.86%(1)
12/31/98 3.35 606,754 0.23 0.23 3.30
12/31/97 3.47 497,986 0.25 0.26 3.41
12/31/96 3.19 388,404 0.29 0.29 3.14
12/31/95 3.60 212,146 0.29 0.29 3.52
01/05/94(3) to 12/31/94 2.56(2) 237,100 0.28(1) 0.30(1) 2.99(1)
N SHARES
01/01/99 to 06/30/99(5) 1.28%(2) $ 214,256 0.55%(1) 0.58%(1) 2.55%(1)
12/31/98 3.02 204,114 0.55 0.58 2.99
12/31/97 3.17 223,071 0.54 0.61 3.13
12/31/96 2.94 178,849 0.53 0.64 2.89
12/31/95 3.31 170,570 0.56 0.65 3.25
12/31/94 2.30 123,501 0.54 0.65 2.20
</TABLE>
See Notes to Financial Statements
84 & 85
<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
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD
=====================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- -----------------------
SHORT/INTERMEDIATE FUND
- -----------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $10.30 $0.292 $(0.320) $(0.292) $ -- $ 9.98
12/31/98 10.21 0.603 0.096 (0.603) (0.006) 10.30
12/31/97 10.14 0.633 0.070 (0.633) -- 10.21
02/26/96(3) to 12/31/96 10.30 0.517 (0.160) (0.517) -- 10.14
N SHARES
01/01/99 to 06/30/99(5) $10.30 $0.280 $(0.320) $(0.280) $ -- $ 9.98
12/31/98 10.21 0.577 0.096 (0.577) (0.006) 10.30
12/31/97 10.14 0.608 0.070 (0.608) -- 10.21
12/31/96 10.38 0.594 (0.247) (0.587) -- 10.14
12/31/95 9.66 0.588 0.720 (0.588) -- 10.38
12/31/94 10.34 0.559 (0.694) (0.545) -- 9.66
- ---------
BOND FUND
- ---------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $10.20 $0.300 $(0.420) $(0.300) $ -- $ 9.78
12/31/98 10.20 0.604 0.103 (0.604) (0.103) 10.20
12/31/97 10.07 0.628 0.284 (0.628) (0.154) 10.20
04/16/96(3) to 12/31/96 10.00 0.425 0.103 (0.425) (0.033) 10.07
N SHARES
01/01/99 to 06/30/99(5) $10.20 $0.288 $(0.420) $(0.288) $ -- $ 9.78
12/31/98 10.20 0.579 0.103 (0.579) (0.103) 10.20
12/31/97 10.07 0.603 0.284 (0.603) (0.154) 10.20
04/22/96(3) to 12/31/96 9.99 0.402 0.113 (0.402) (0.033) 10.07
A SHARES
02/18/99(3) to 06/30/99(5) $10.11 $0.205 $(0.330) $(0.205) $ -- $ 9.78
- ----------------------------
INTERMEDIATE GOVERNMENT FUND
- ----------------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $16.61 $0.454 $(0.710) $(0.454) $ -- $15.90
12/31/98 16.54 0.967 0.231 (0.967) (0.161) 16.61
03/24/97(3) to 12/31/97 16.12 0.793 0.461 (0.793) (0.041) 16.54
N SHARES
01/01/99 to 06/30/99(5) $16.61 $0.433 $(0.710) $(0.433) $ -- $15.90
12/31/98 16.54 0.925 0.231 (0.925) (0.161) 16.61
04/16/97(3) to 12/31/97 16.06 0.702 0.521 (0.702) (0.041) 16.54
A SHARES
02/12/99(3) to 06/30/99(5) $16.44 $0.318 $(0.540) $(0.318) $ -- $15.90
- ----------------------------
INTERMEDIATE TAX-EXEMPT FUND
- ----------------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $10.70 $0.201 $(0.310) $(0.201) $ -- $10.39
12/31/98 10.75 0.417 0.103 (0.417) (0.153) 10.70
12/31/97 10.58 0.442 0.220 (0.442) (0.050) 10.75
02/26/96(3) to 12/31/96 10.74 0.381 (0.124) (0.381) (0.036) 10.58
N SHARES
01/01/99 to 06/30/99(5) $10.70 $0.188 $(0.310) $(0.188) $ -- $10.39
12/31/98 10.75 0.390 0.103 (0.390) (0.153) 10.70
12/31/97 10.58 0.327 0.220 (0.327) (0.050) 10.75
03/13/96(3) to 12/31/96 10.55 0.084 0.066 (0.084) (0.036) 10.58
</TABLE>
<TABLE>
<CAPTION>
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME PORTFOLIO
TOTAL PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET TURNOVER
RETURN (000) ASSETS WAIVERS) ASSETS RATE
======================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- -----------------------
SHORT/INTERMEDIATE FUND
- -----------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) (0.28)%(2) $325,602 0.60%(1) 0.91%(1) 5.80%(1) 45.79%
12/31/98 7.01% 337,015 0.60% 0.90 5.85 66.06
12/31/97 7.15 288,886 0.60 0.89 6.24 98.08
02/26/96(3) to 12/31/96 3.61(2) 255,573 0.60(1) 0.90(1) 6.06(1) 186.02
N SHARES
01/01/99 to 06/30/99(5) (0.40)%(2) $ 7,996 0.85%(1) 1.16%(1) 5.55%(1) 45.79%
12/31/98 6.75 4,658 0.85 1.15 5.60 66.06
12/31/97 6.89 5,922 0.85 1.14 5.99 98.08
12/31/96 3.51 4,432 0.62 0.92 5.59 186.02
12/31/95 13.88 51,814 0.60 0.96 5.91 194.94
12/31/94 (1.29) 44,333 0.60 0.92 5.29 140.99
- ---------
BOND FUND
- ---------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) (1.20%)(2) $185,792 0.60%(1) 0.89%(1) 6.04%(1) 25.93%
12/31/98 7.12 183,831 0.60 0.88 5.89 64.93
12/31/97 9.41 140,447 0.60 0.89 6.25 138.30
04/16/96(3) to 12/31/96 5.40(2) 43,142 0.60(1) 0.98(1) 6.03(1) 116.02
N SHARES
01/01/99 to 06/30/99(5) (1.32)%(2) $ 3,735 0.85%(1) 1.14%(1) 5.79%(1) 25.93%
12/31/98 6.86 2,566 0.85 1.13 5.64 64.93
12/31/97 9.14 936 0.85 1.14 6.00 138.30
04/22/96(3) to 12/31/96 5.27(2) 130 0.85(1) 1.23(1) 5.87(1) 116.02
A SHARES
02/18/99(3) to 06/30/99(5) (5.73)%(2)(4) $ 19 0.85%(1) 1.14%(1) 5.79%(1) 25.93%
- ----------------------------
INTERMEDIATE GOVERNMENT FUND
- ----------------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) (1.57)%(2) $ 99,512 0.50%(1) 0.92%(1) 5.64%(1) 40.34%
12/31/98 7.45 103,162 0.50 0.91 5.82 99.63
03/24/97(3) to 12/31/97 7.96(2) 99,359 0.50(1) 0.91(1) 6.31(1) 84.89(1)
N SHARES
01/01/99 to 06/30/99(5) (1.69)%(2) $ 4,581 0.75%(1) 1.17%(1) 5.39%(1) 40.34%
12/31/98 7.18 2,126 0.75 1.16 5.57 99.63
04/16/97(3) to 12/31/97 7.76(2) 716 0.75(1) 1.16(1) 6.06(1) 84.89(1)
A SHARES
02/12/99(3) to 06/30/99(5) (4.84)%(2)(4) $ 194 0.75% 1.17%(1) 5.39%(1) 40.34%
- ----------------------------
INTERMEDIATE TAX-EXEMPT FUND
- ----------------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) (1.04)%(2) $201,236 0.80%(1) 0.81%(1) 3.82%(1) 88.32%
12/31/98 4.94 226,087 0.80 0.80 3.87 90.92
12/31/97 6.41 193,009 0.79 0.79 4.16 48.72
02/26/96(3) to 12/31/96 2.49(2) 208,690 0.79(1) 0.82(1) 4.28(1) 57.23
N SHARES
01/01/99 to 06/30/99(5) (1.16)%(2) $ 3,178 1.05%(1) 1.06%(1) 3.57%(1) 88.32%
12/31/98 4.67 900 1.05 1.05 3.62 90.92
12/31/97 6.14 644 1.04 1.04 3.91 48.72
03/13/96(3) to 12/31/96 1.44(2) -- 1.04(1) 1.07(1) 4.33(1) 57.23
</TABLE>
See Notes to Financial Statements
86 & 87
<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
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD
========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- ---------------
TAX-EXEMPT FUND
- ---------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $10.39 $0.216 $(0.380) $(0.216) $ -- $10.01
12/31/98 10.52 0.444 0.059 (0.444) (0.189) 10.39
12/31/97 10.25 0.461 0.391 (0.461) (0.121) 10.52
02/26/96(3) to 12/31/96 10.56 0.402 (0.094) (0.402) (0.216) 10.25
N SHARES
01/01/99 to 06/30/99(5) $10.39 $0.203 $(0.380) $(0.203) $ -- $10.01
12/31/98 10.52 0.418 0.059 (0.418) (0.189) 10.39
12/31/97 10.25 0.435 0.391 (0.435) (0.121) 10.52
10/02/96(3) to 12/31/96 10.33 0.105 0.136 (0.105) (0.216) 10.25
- ---------------------------
CONVERTIBLE SECURITIES FUND
- ---------------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $24.14 $0.476 $ 1.827 $(0.453) $ -- $25.99
12/31/98 28.52 1.130 (1.647) (1.141) (2.722) 24.14
03/24/97(3) to 12/31/97 29.15 0.914 3.120 (0.897) (3.767) 28.52
N SHARES
01/01/99 to 06/30/99(5) $24.14 $0.438 $ 1.825 $(0.423) $ -- $25.98
12/31/98 28.52 1.106 (1.691) (1.073) (2.722) 24.14
03/26/97(3) to 12/31/97 29.30 0.690 3.122 (0.825) (3.767) 28.52
- -----------
EQUITY FUND
- -----------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $17.03 $ 0.028 $ 0.421 $(0.029) $ -- $17.45
12/31/98 17.59 0.116 2.224 (0.114) (2.786) 17.03
12/31/97 15.53 0.234 5.190 (0.235) (3.129) 17.59
02/26/96(3) to 12/31/96 15.30 0.189 1.898 (0.193) (1.664) 15.53
N SHARES
01/01/99 to 06/30/99(5) $17.02 $ 0.005 $ 0.437 $(0.012) $ -- $17.45
12/31/98 17.59 0.066 2.213 (0.063) (2.786) 17.02
12/31/97 15.53 0.174 5.190 (0.175) (3.129) 17.59
12/31/96 13.99 0.451 2.926 (0.173) (1.664) 15.53
12/31/95 11.28 0.229 3.827 (0.232) (1.114) 13.99
12/31/94 12.86 0.263 (0.514) (0.263) (1.066) 11.28
A SHARES
02/12/99(3) to 06/30/99(5) $16.97 $(0.001) $ 0.484 $(0.003) $ -- $17.45
- ------------------
EQUITY INCOME FUND
- ------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $19.27 $ 0.089 $1.562 $(0.091) $ -- $20.83
12/31/98 16.32 0.218 3.492 (0.216) (0.544) 19.27
12/31/97 13.73 0.272 4.050 (0.268) (1.464) 16.32
02/26/96(3) to 12/31/96 13.34 0.270 1.387 (0.269) (0.998) 13.73
N SHARES
01/01/99 to 06/30/99(5) $19.26 $ 0.053 $1.587 $(0.070) $ -- $20.83
12/31/98 16.31 0.171 3.490 (0.167) (0.544) 19.26
12/31/97 13.72 0.237 4.037 (0.220) (1.464) 16.31
04/18/96(3) to 12/31/96 13.02 0.179 1.732 (0.213) (0.998) 13.72
A SHARES
02/10/99(3) to 06/30/99(5) $19.26 $ 0.086 $1.552 $(0.068) $ -- $20.83
</TABLE>
<TABLE>
<CAPTION>
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME PORTFOLIO
TOTAL PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET TURNOVER
RETURN (000) ASSETS WAIVERS) ASSETS RATE
====================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- ---------------
TAX-EXEMPT FUND
- ---------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) (1.62)%(2) $159,266 0.80%(1) 0.81%(1) 4.22%(1) 108.67%
12/31/98 4.88 169,060 0.79 0.80 4.22 87.61
12/31/97 8.55 179,871 0.80 0.80 4.47 61.52
02/26/96(3) to 12/31/96 3.04(2) 165,388 0.80(1) 0.81(1) 4.60(1) 61.60
N SHARES
01/01/99 to 06/30/99(5) (1.74)%(2) $ 1,887 1.05%(1) 1.06%(1) 3.97%(1) 108.67%
12/31/98 4.62 909 1.04 1.05 3.97 87.61
12/31/97 8.28 644 1.05 1.05 4.22 61.52
10/02/96(3) to 12/31/96 2.34(2) 38 1.05(1) 1.06(1) 4.35(1) 61.60
- ---------------------------
CONVERTIBLE SECURITIES FUND
- ---------------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 9.63%(2) $ 48,413 0.92%(1) 0.99%(1) 3.77%(1) 5.98%
12/31/98 (1.80) 49,396 0.92 1.01 4.05 48.73
03/24/97(3) to 12/31/97 14.24(2) 59,384 0.92(1) 0.96(1) 3.76(1) 93.24(1)
N SHARES
01/01/99 to 06/30/99(5) 9.46%(2) $ 418 1.17%(1) 1.24%(1) 3.52%(1) 5.98%
12/31/98 (2.04) 409 1.17 1.26 3.80 48.73
03/26/97(3) to 12/31/97 13.39(2) 85 1.17(1) 1.21(1) 3.51(1) 93.24(1)
- -----------
EQUITY FUND
- -----------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 2.64%(2) $786,553 0.90%(1) 0.90%(1) 0.32%(1) 24.88%
12/31/98 13.80 841,119 0.89 0.89 0.64 76.92
12/31/97 35.89 845,829 0.88 0.88 1.33 81.48
02/26/96(3) to 12/31/96 13.66(2) 568,400 0.90(1) 0.90(1) 1.43(1) 75.20
N SHARES
01/01/99 to 06/30/99(5) 2.60%(2) $ 27,671 1.15%(1) 1.15%(1) 0.07%(1) 24.88%
12/31/98 13.42 29,050 1.14 1.14 0.39 76.92
12/31/97 35.45 17,859 1.13 1.13 1.08 81.48
12/31/96 24.15 7,792 0.94 0.94 1.47 75.20
12/31/95 36.26 61,256 0.96 0.97 1.75 75.93
12/31/94 (2.05) 38,920 0.90 0.92 1.94 87.83
A SHARES
02/12/99(3) to 06/30/99(5) 2.85%(2)(4)$ 97 1.25%(1) 1.25%(1) (0.03)%(1) 24.88%
- ------------------
EQUITY INCOME FUND
- ------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 8.59%(2) $ 71,894 0.93%(1) 0.99%(1) 0.92%(1) 6.77%
12/31/98 22.97 62,204 0.93 0.96 1.26 21.60
12/31/97 31.90 40,424 0.93 0.96 1.69 29.87
02/26/96(3) to 12/31/96 12.46(2) 31,760 0.93(1) 0.97(1) 2.36(1) 52.77
N SHARES
01/01/99 to 06/30/99(5) 8.53%(2) $ 4,947 1.18%(1) 1.24%(1) 0.67%(1) 6.77%
12/31/98 22.66 3,728 1.18 1.21 1.01 21.60
12/31/97 31.53 1,241 1.18 1.21 1.44 29.87
04/18/96(3) to 12/31/96 14.67(2) 298 1.18(1) 1.19(1) 2.11(1) 52.77
A SHARES
02/10/99(3) to 06/30/99(5) 8.52%(2)(4)$ 260 1.28%(1) 1.34%(1) 0.57%(1) 6.77%
</TABLE>
See Notes to Financial Statements
88 & 89
<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
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD
=============================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- -----------
GROWTH FUND
- -----------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $26.25 $(0.016) $ 2.336 $ -- $ -- $28.57
12/31/98 22.67 0.012 5.583 (0.009) (2.006) 26.25
12/31/97 18.69 0.048 6.026 (0.048) (2.046) 22.67
02/26/96(3) to 12/31/96 17.01 0.062 2.746 (0.063) (1.065) 18.69
N SHARES
01/01/99 to 06/30/99(5) $26.18 $(0.042) $ 2.322 $ -- $ -- $28.46
12/31/98 22.67 (0.030) 5.546 -- (2.006) 26.18
12/31/97 18.69 0.004 6.026 (0.004) (2.046) 22.67
04/19/96(3) to 12/31/96 16.49 0.030 3.273 (0.038) (1.065) 18.69
A SHARES
02/05/99(3) to 06/30/99(5) $27.00 $(0.031) $ 1.471 $ -- $ -- $28.44
- --------------------------
SMALL-CAP OPPORTUNITY FUND
- --------------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $17.85 $(0.035) $ 1.775 $ -- $ -- $19.59
12/31/98 17.71 (0.047) 0.258 -- (0.071) 17.85
12/31/97 15.52 0.007 3.865 (0.012) (1.670) 17.71
02/26/96(3) to 12/31/96 14.24 0.057 1.998 (0.057) (0.718) 15.52
N SHARES
01/01/99 to 06/30/99(5) $17.77 $(0.063) $ 1.763 $ -- $ -- $19.47
12/31/98 17.66 (0.060) 0.241 -- (0.071) 17.77
12/31/97 15.51 (0.003) 3.823 -- (1.670) 17.66
04/19/96(3) to 12/31/96 14.25 0.032 1.996 (0.050) (0.718) 15.51
A SHARES
03/05/99(3) to 06/30/99(5) $16.67 $(0.016) $ 2.816 $ -- $ -- $19.47
- --------------------
SMALL-CAP VALUE FUND
- --------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $30.69 $ 0.065 $(0.245) $ -- $ -- $30.51
12/31/98 33.02 0.132 (1.312) (0.139) (1.011) 30.69
03/24/97(3) to 12/31/97 28.29 0.146 7.467 (0.139) (2.744) 33.02
N SHARES
01/01/99 to 06/30/99(5) $30.69 $ 0.028 $(0.248) $ -- $ -- $30.47
12/31/98 33.02 0.093 (1.342) (0.070) (1.011) 30.69
07/10/97(3) to 12/31/97 32.31 0.028 3.462 (0.036) (2.744) 33.02
- ----------
INDEX FUND
- ----------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $28.35 $ 0.150 $ 3.253 $(0.143) $ -- $31.61
12/31/98 23.51 0.304 6.247 (0.303) (1.408) 28.35
12/31/97 18.48 0.278 5.742 (0.281) (0.709) 23.51
02/26/96(3) to 12/31/96 16.72 0.268 2.104 (0.268) (0.344) 18.48
N SHARES
01/01/99 to 06/30/99(5) $28.35 $ 0.130 $ 3.244 $(0.114) $ -- $31.61
12/31/98 23.51 0.236 6.244 (0.232) (1.408) 28.35
12/31/97 18.48 0.247 5.725 (0.233) (0.709) 23.51
04/19/96(3) to 12/31/96 16.35 0.188 2.511 (0.225) (0.344) 18.48
</TABLE>
<TABLE>
<CAPTION>
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME PORTFOLIO
TOTAL PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET TURNOVER
RETURN (000) ASSETS WAIVERS) ASSETS RATE
===================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- -----------
GROWTH FUND
- -----------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) (8.84)%(2) $170,036 1.10%(1) 1.13%(1) (0.13)%(1) 12.26%
12/31/98 25.03 144,759 1.10 1.11 0.05 34.96
12/31/97 32.81 109,140 1.10 1.11 0.22 37.02
02/26/96(3) to 12/31/96 16.43(2) 76,516 1.10(1) 1.14(1) 0.42(1) 35.36
N SHARES
01/01/99 to 06/30/99(5) 8.71%(2) $ 8,771 1.35%(1) 1.38%(1) (0.38)%(1) 12.26%
12/31/98 24.68 7,661 1.35 1.36 (0.20) 34.96
12/31/97 32.54 2,766 1.35 1.36 (0.03) 37.02
04/19/96(3) to 12/31/96 19.95(2) 397 1.35(1) 1.39(1) 0.17(1) 35.36
A SHARES
02/05/99(3) to 06/30/99(5) 5.33(2)(4) $ 451 1.45%(1) 1.48%(1) (0.48)%(1) 12.26%
- --------------------------
SMALL-CAP OPPORTUNITY FUND
- --------------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 9.75(2) $333,098 1.20%(1) 1.21%(1) (0.40)%(1) 18.12%
12/31/98 1.16 296,719 1.20 1.21 (0.28) 51.49
12/31/97 25.47 274,353 1.20 1.21 0.03 39.63
02/26/96(3) to 12/31/96 14.29(2) 150,306 1.20(1) 1.22(1) 0.46(1) 46.13
N SHARES
01/01/99 to 06/30/99(5) 9.57(2) $ 4,617 1.45%(1) 1.46%(1) (0.65)%(1) 18.12%
12/31/98 0.99 5,032 1.45 1.46 (0.53) 51.49
12/31/97 25.14 2,485 1.45 1.46 (0.22) 39.63
04/19/96(3) to 12/31/96 14.29(2) 443 1.45(1) 1.47(1) 0.10(1) 46.13
A SHARES
03/05/99(3) to 06/30/99(5) 16.80%(2)(4) $ 19 1.55%(1) 1.56%(1) (0.75)%(1) 18.12%
- --------------------
SMALL-CAP VALUE FUND
- --------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) (0.59)%(2) $135,202 0.99%(1) 1.03%(1) 0.43%(1) 37.67%
12/31/98 (3.93) 143,525 0.99 1.05 0.56 76.44
03/24/97(3) to 12/31/97 27.11(2) 99,816 0.99(1) 1.06(1) 0.63(1) 91.66(1)
N SHARES
01/01/99 to 06/30/99(5) (0.72)%(2) $ 637 1.24%(1) 1.28%(1) 0.18%(1) 37.67%
12/31/98 4.15 641 1.24 1.30 0.31 76.44
07/10/97(3) to 12/31/97 10.95(2) 292 1.24(1) 1.31(1) 0.38(1) 91.66(1)
- ----------
INDEX FUND
- ----------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 12.02%(2) $492,353 0.45%(1) 0.45%(1) 1.06%(1) 1.30%
12/31/98 28.22 362,568 0.45 0.46 1.16 5.59
12/31/97 32.78 292,196 0.45 0.47 1.39 7.10
02/26/96(3) to 12/31/96 14.26(2) 143,954 0.45(1) 0.49(1) 1.85(1) 4.71
N SHARES
01/01/99 to 06/30/99(5) 11.92%(2) $ 19,844 0.70%(1) 0.70%(1) 0.81%(1) 1.30%
12/31/98 27.88 13,727 0.70 0.71 0.91 5.59
12/31/97 32.51 6,942 0.70 0.72 1.14 7.10
04/19/96(3) to 12/31/96 16.56(2) 150 0.70(1) 0.74(1) 1.60(1) 4.71
</TABLE>
See Notes to Financial Statements.
90 & 91
<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
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- -------------
BALANCED FUND
- -------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $14.44 $ 0.204 $(0.118) $(0.196) $ -- $14.33
12/31/98 14.93 0.492 0.753 (0.494) (1.241) 14.44
03/24/97(3) to 12/31/97 12.74 0.377 2.185 (0.372) -- 14.93
N SHARES
01/01/99 to 06/30/99(5) $14.44 $ 0.189 $(0.121) $(0.178) $ -- $14.33
12/31/98 14.93 0.440 0.759 (0.448) (1.241) 14.44
04/16/97(3) to 12/31/97 12.56 0.301 2.411 (0.342) -- 14.93
A SHARES
02/10/99(3) to 06/30/99(5) $14.14 $ 0.258 $ 0.105 $(0.173) $ -- $14.33
- ------------------
INTERNATIONAL FUND
- ------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $12.55 $ 0.130 $ 1.980 $ -- $ -- $14.66
12/31/98 13.33 0.166 (0.787) (0.159) -- 12.55
12/31/97 15.46 0.116 (0.858) (0.125) (1.263) 13.33
02/26/96(3) to 12/31/96 15.04 0.128 0.485 (0.125) (0.068) 15.46
N SHARES
01/01/99 to 06/30/99(5) $12.55 $ 0.127 $ 1.933 $ -- $ -- $14.61
12/31/98 13.33 0.140 (0.787) (0.133) -- 12.55
12/31/97 15.46 0.078 (0.876) (0.069) (1.263) 13.33
03/13/96(3) to 12/31/96 14.69 0.091 0.860 (0.113) (0.068) 15.46
A SHARES
03/05/99(3) to 06/30/99(5) $11.90 $ 0.122 $ 2.588 $ -- $ -- $14.61
- ---------------------
EMERGING MARKETS FUND
- ---------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) $ 5.87 $0.009 $ 2.441 $ -- $ -- $ 8.32
12/31/98 8.55 0.023 (2.688) (0.015) -- 5.87
10/21/97(3) to 12/31/97 10.00 0.006 (1.456) -- -- 8.55
N SHARES
01/01/99 to 06/30/99(5) $ 5.85 $0.008 $ 2.422 $ -- $ -- $ 8.28
12/31/98 8.54 0.008 (2.698) -- -- 5.85
10/21/97(3) to 12/31/97 10.00 0.002 (1.462) -- -- 8.54
</TABLE>
<TABLE>
<CAPTION>
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME PORTFOLIO
TOTAL PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET TURNOVER
RETURN (000) ASSETS WAIVERS) ASSETS RATE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- -------------
BALANCED FUND
- -------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 0.63%(2) $ 52,327 0.88%(1) 1.02%(1) 2.83%(1) 31.82%
12/31/98 8.61 56,027 0.88 0.98 3.16 70.93
03/24/97(3) to 12/31/97 20.24(2) 69,415 0.88(1) 0.92(1) 3.45(1) 108.29(1)
N SHARES
01/01/99 to 06/30/99(5) 0.50%(2) $ 2,730 1.13%(1) 1.27%(1) 2.58%(1) 31.82%
12/31/98 8.29 2,328 1.13 1.23 2.91 70.93
04/16/97(3) to 12/31/97 21.72(2) 700 1.13(1) 1.17(1) 3.20(1) 108.29(1)
A SHARES
02/10/99(3) to 06/30/99(5) 2.59%(2)(4) $ 75 1.23%(1) 1.37%(1) 2.48%(1) 31.82%
- ------------------
INTERNATIONAL FUND
- ------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 16.81%(2) $235,495 1.34%(1) 1.35%(1) 1.97%(1) 27.22%
12/31/98 (4.64) 194,447 1.33 1.33 1.64 45.82
12/31/97 (4.87) 172,158 1.40 1.42 0.82 93.33
02/26/96(3) to 12/31/96 4.08(2) 109,747 1.36(1) 1.38(1) 0.99(1) 6.72
N SHARES
01/01/99 to 06/30/99(5) 16.41%(2) $ 2,276 1.59%(1) 1.60%(1) 1.72%(1) 27.22%
12/31/98 (4.84) 1,657 1.58 1.58 1.39 45.82
12/31/97 (5.21) 1,265 1.65 1.67 0.57 93.33
03/13/96(3) to 12/31/96 6.48(2) 597 1.61(1) 1.63(1) 0.35(1) 6.72
A SHARES
03/05/99(3) to 06/30/99(5) 22.77%(2)(4) $ 1 1.69%(1) 1.70%(1) 1.62%(1) 27.22%
- ---------------------
EMERGING MARKETS FUND
- ---------------------
INSTITUTIONAL SHARES
01/01/99 to 06/30/99(5) 41.74%(2) $ 29,231 1.75%(1) 1.79%(1) 0.28%(1) 23.96%
12/31/98 (31.16) 19,072 1.75 2.08 1.06 34.55
10/21/97(3) to 12/31/97 (14.50)(2) 18,023 1.75(1) 2.09(1) 0.43(1) --
N SHARES
01/01/99 to 06/30/99(5) 41.54%(2) $ 190 2.00%(1) 2.04%(1) 0.03%(1) 23.96%
12/31/98 (31.50) 62 2.00 2.33 0.81 34.55
10/21/97(3) to 12/31/97 (14.60)(2) 96 2.00(1) 2.34(1) 0.18(1) --
</TABLE>
(1) Annualized.
(2) Total returns for periods of less than one year are not annualized.
(3) Date commenced operations.
(4) Sales load is not reflected in total return.
(5) Unaudited.
See Notes to Financial Statements.
92 & 93
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
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 currently
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 three classes of shares: Institutional
shares, N shares, and A shares, with the exception of the Index Fund and the
Money Market Funds, each of which offers two classes: Institutional shares and N
shares. The N shares of each Fund were formerly known as Class A; the current A
shares' first offering date was January 18, 1999. Shares of each class of a Fund
represent equal pro rata interests in the Fund and are identical in all respects
except that N shares and A shares are subject to certain service
organization/agent fees as described in Note 4 and the A shares are sold subject
to a sales load (Note 5). Institutional shares are not subject to service
organization/agent fees. As of June 30, 1999, no A shares of the
Short/Intermediate Fund, Intermediate Tax-Exempt Fund, Tax-Exempt Fund,
Convertible Securities Fund, Small-Cap Value Fund, and Emerging Markets Fund had
been issued.
94
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
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 or Board of Directors of the Funds, as the case may be.
Prices used for valuations of securities are provided by independent pricing
services and brokers. 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 or
under the direction of the Board of Trustees or Board of Directors, as the case
may be. Debt obligations, other than bonds, with remaining maturities of 60 days
or less are valued at amortized cost. Note: The Boards have adopted valuation
procedures specifying amortized cost for fixed income securities within 60 days
of maturity.
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.
95
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
(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, Equity Fund, Equity
Income Fund, Index Fund and Balanced Fund are declared and paid quarterly.
Dividends from the Growth Fund, 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 Fund 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
Fund will recognize a realized gain or loss.
Futures contracts are subject to the risk associated with the imperfect
correlation between movements in the price of the 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 -- A Fund may enter into mortgage dollar rolls in which
the 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) 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 Fund may be
delayed or limited.
96
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
(J) SECURITIES LENDING -- The non-Money Market Funds may participate in a
securities lending program with certain counterparties whereby the Funds loan
securities to an organization that provides collateral. The Funds continue to
own the loaned securities and the securities remain in the investment portfolio.
However, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings. The market value of securities on loan to brokers and the
value of collateral held by the Funds with respect to such loans (including
rights to draw on letters of credit) at June 30, 1999, and income earned on
securities loaned for the six months ended June 30, 1999, are as follows:
MARKET VALUE VALUE OF INCOME EARNED
OF SECURITIES COLLATERAL ON SECURITIES
ON LOAN RECEIVED LOANED*
------------- ----------- -------------
Short/Intermediate Fund ....... $18,006,740 $18,657,500 $ 4,501
Bond Fund ..................... 2,754,840 2,823,750 1,932
Convertible Securities Fund ... 2,097,078 2,104,855 7,963
Equity Fund ................... 49,752,795 50,390,600 63,743
Equity Income Fund ............ 7,498,162 7,609,400 4,820
Growth Fund ................... 17,518,490 17,441,000 9,587
Small-Cap Opportunity Fund .... 29,152,523 29,283,498 23,453
Small-Cap Value Fund .......... 8,094,897 8,555,345 11,905
Index Fund .................... 55,937,791 57,410,779 22,763
Balanced Fund ................. 2,308,915 2,380,125 3,255
*Income is included in interest income on the Statements of Operations.
(K) 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.
3. 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%
97
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
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, 1999,
advisory fees and waivers for certain Funds were as follows:
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
------------ -------- ------------
Short/Intermediate Fund ......... $1,172,596 $512,007 $ 660,589
Bond Fund ....................... 612,143 256,454 355,689
Intermediate Government Fund .... 338,114 207,842 130,272
Intermediate Tax-Exempt Fund .... 648,649 7,482 641,167
Tax-Exempt Fund ................. 501,064 10,752 490,312
Convertible Securities Fund ..... 166,558 16,434 150,124
Equity Income Fund .............. 247,552 9,037 238,515
Growth Fund ..................... 735,107 14,840 720,267
Small-Cap Opportunity Fund ...... 1,489,863 4,272 1,485,591
Small-Cap Value Fund ............ 532,912 24,116 508,796
Index Fund ...................... 520,275 2,318 517,957
Balanced Fund ................... 166,605 27,388 139,217
Emerging Markets Fund ........... 144,303 5,145 139,158
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 and Harris Trust are subsidiaries of Harris Bankcorp, Inc.
HIM has entered into Investment Sub-Advisory Agreements with Hansberger
Global Investors, Inc. ("Hansberger") with respect to the International Fund and
the Emerging Markets Fund. Pursuant to those agreements, Hansberger selects and
manages the securities in which those Funds invest. Hansberger, as Sub-Adviser,
receives a fee directly from HIM and not from the Funds.
The Company and the Trust have Administration Agreements 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 Sub-Administration and Accounting
Services Agreements with PFPC, Inc. ("PFPC" or the "Sub-Administrator and
Accounting Services Agent"), pursuant to which the Sub-Administrator and
Accounting Services Agent performs certain administrative services for the
Funds. Under these Agreements, the Administrator compensates 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. PFPC Trust Co. (the "Custodian") 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. For the six month
period ended June 30, 1999, the Administrator waived fees of $111,983 for the
Government Money Fund and $592,871 for the Money Fund.
98
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
Provident Distributors, Inc. ("PDI" or the "Distributor") provides services
as distributor in connection with sales of shares of the Funds. No compensation
is payable to PDI for its distribution services. Fees for services rendered by
the Distributor were paid by the Administrator. For the six months ended June
30, 1999, the aggregate sales charges paid with respect to A shares of the Funds
were $55,936, of which $5,303 was retained and $50,633 was reallowed to dealer
firms. Sales charges retained and reallowed are as follows:
RETAINED REALLOWED
--------- ---------
Bond Fund ........................... $ 97 $ 980
Intermediate Government Fund ........ 619 5,773
Equity Fund ......................... 496 4,808
Equity Income Fund .................. 1,241 11,856
Growth Fund ......................... 2,388 22,995
Small-Cap Opportunity Fund .......... 136 1,160
Balanced Fund ....................... 324 3,036
International Fund .................. 2 25
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,
1999, the accumulated balance of deferred directors' fees and interest thereon
relating to all Funds comprising the Company was approximately $212,700, a
portion of which is included in accrued expenses of each applicable Fund.
Certain employees of PFPC, Inc. are officers of the Funds. During the six
months ended June 30, 1999, PFPC, Inc. received $2,453,870 in aggregate fees and
expenses (net of waivers of $94,865) from the Administrator for services
rendered under various agreements described above.
4. SERVICE PLANS
The Company and the Trust have adopted a Service Plan (the "Plan") for the
N 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 N 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 N shares.
Additionally, the Funds, except for the Index Fund and the Money Market
Funds, have adopted a separate 12b-1 Plan that provides for distribution/service
fees of up to 0.35% (on an annualized basis) of the average daily net assets
attributable to A shares.
99
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
For the six months ended June 30, 1999, the non-Money Market Funds paid the
following shareholder service fees pursuant to the Plan, including fees paid to
Harris Trust and to the Distributor:
Short/Intermediate Fund ........................ $ 7,871
Bond Fund ...................................... 4,013
Intermediate Government Fund ................... 3,945
Intermediate Tax-Exempt Fund ................... 2,509
Tax-Exempt Fund ................................ 1,314
Convertible Securities Fund .................... 510
Equity Fund .................................... 33,889
Equity Income Fund ............................. 5,430
Growth Fund .................................... 9,001
Small-Cap Opportunity Fund ..................... 5,494
Small-Cap Value Fund ........................... 731
Index Fund ..................................... 20,788
Balanced Fund .................................. 3,215
International Fund ............................. 2,943
Emerging Markets Fund .......................... 131
For the six months ended June 30, 1999, shareholder service fees paid by
the Money Market Funds under the Plan were $329,960, $1,110,951, and $279,809
and fees paid under the 12b-1 Plan were $131,984, $444,380, and $80,797 (net of
voluntary waivers of $0, $0, and $35,180) for the N shares of the Government
Money Fund, Money Fund, and Tax-Exempt Money Fund, respectively.
For the six months ended June 30, 1999, the following funds have paid fees
under the 12b-1 Plan for A shares. The fees are as follows:
Bond Fund ...................................... $ 16
Intermediate Government Fund ................... 99
Equity Fund .................................... 77
Equity Income Fund ............................. 158
Growth Fund .................................... 362
Small-Cap Opportunity Fund ..................... 8
Balanced Fund .................................. 64
International Fund ............................. 1
5. PUBLIC OFFERING PRICE
A shares of the Funds are sold at a public offering price which is equal to
the current net asset value of such shares with a maximum front-end sales load
of 5.50% for the Equity Funds, 4.50% for the Convertible Securities Fund,
Tax-Exempt Fund, and Bond Fund, and 3.50% for the Intermediate Tax-Exempt Fund,
Short/Intermediate Fund, and Intermediate Government Fund.
6. INVESTMENT TRANSACTIONS
The cost of investments at June 30, 1999 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.
100
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
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, 1999 were as follows:
PURCHASES SALES
------------ ------------
Short/Intermediate Fund .................... $ 60,089,066 $ 65,199,500
Bond Fund .................................. 49,559,283 43,251,872
Intermediate Government Fund ............... 6,929,684 4,298,439
Intermediate Tax-Exempt Fund ............... 187,805,798 207,521,934
Tax-Exempt Fund ............................ 182,532,705 189,041,724
Convertible Securities Fund ................ 2,799,418 6,861,765
Equity Fund ................................ 202,537,547 257,113,827
Equity Income Fund ......................... 11,132,534 4,519,254
Growth Fund ................................ 33,061,721 19,746,230
Small-Cap Opportunity Fund ................. 54,755,733 53,214,366
Small-Cap Value Fund ....................... 48,983,011 51,186,966
Index Fund ................................. 87,991,995 5,206,579
Balanced Fund .............................. 11,039,610 16,072,942
International Fund ......................... 64,998,264 55,971,481
Emerging Markets Fund ...................... 6,622,534 5,334,495
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,
1999 were as follows:
PURCHASES SALES
----------- -----------
Short/Intermediate Fund ...................... $91,396,770 $96,190,987
Bond Fund .................................... 57,746,540 59,258,406
Intermediate Government Fund ................. 37,766,555 36,638,568
Balanced Fund ................................ 6,707,017 3,694,491
At June 30, 1999, gross unrealized appreciation (depreciation) for each
non-Money Market Fund was as follows:
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------- -------------- --------------
Short/Intermediate Fund ....... $ 1,187,123 $ (7,772,514) $ (6,585,391)
Bond Fund ..................... 621,511 (5,112,431) (4,490,920)
Intermediate Government Fund .. 547,092 (2,359,312) (1,812,220)
Intermediate Tax-Exempt Fund .. 1,642,845 (2,753,149) (1,110,304)
Tax-Exempt Fund ............... 3,499,880 (1,665,170) 1,834,710
Convertible Securities Fund ... 8,357,531 (5,241,971) 3,115,560
Equity Fund ................... 193,597,050 (38,875,059) 154,721,991
Equity Income Fund ............ 27,227,166 (1,445,166) 25,782,000
Growth Fund ................... 73,071,515 (5,259,597) 67,811,918
Small-Cap Opportunity Fund .... 116,872,703 (14,099,973) 102,772,730
Small-Cap Value Fund .......... 19,229,111 (12,814,800) 6,414,311
Index Fund .................... 214,347,370 (4,222,159) 210,125,211
Balanced Fund ................. 6,627,232 (2,377,739) 4,249,493
International Fund ............ 33,951,496 (26,138,099) 7,813,397
Emerging Markets Fund ......... 7,742,297 (2,900,278) 4,842,019
101
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
At December 31, 1998, the Small-Cap Opportunity Fund, the International
Fund, and the Emerging Markets Fund had available capital loss carryforwards of
approximately $486,884, $3,597,142 and $5,011,976, respectively, that may be
used to offset future net capital gains through 2005 and 2006.
7. COMPOSITION OF NET ASSETS
At June 30, 1999, 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 ........................ $ 451,650 $ 2,262,105 $ 705,895
Paid-in Capital ................................... 451,198,261 2,259,843,015 705,189,368
Undistributed Net Investment Income ............... -- -- --
Accumulated Net Realized Gain/(Loss) .............. (112,283) (16,932) --
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions .............. -- -- --
------------ -------------- ------------
Net Assets ........................................ $451,537,628 $2,262,088,188 $705,895,263
============ ============== ============
</TABLE>
<TABLE>
<CAPTION>
SHORT/ INTERMEDIATE
INTERMEDIATE GOVERNMENT
FUND BOND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value ...................................... $ 33,414 $ 19,379 $ 6,559
Paid-in Capital ................................... 341,422,807 195,235,641 106,698,134
Undistributed Net Investment Income ............... -- -- --
Accumulated Net Realized Gain/(Loss) .............. (1,272,835) (1,218,432) (605,151)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions .............. (6,585,391) (4,490,920) (1,812,220)
------------ ------------ ------------
Net Assets ........................................ $333,597,995 $189,545,668 $104,287,322
============ ============ ============
</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 ..................................... $ 19,675 $ 16,097 $ 1,879 $ 46,672
Paid-in Capital .................................. 205,185,761 159,288,854 45,146,605 570,451,056
Undistributed Net Investment Income .............. -- -- 53,523 (25,576)
Accumulated Net Realized Gain/(Loss) ............. 319,339 13,311 513,694 89,127,049
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ............. (1,110,304) 1,834,710 3,115,560 154,721,991
------------ ------------ ----------- ------------
Net Assets ....................................... $204,414,471 $161,152,972 $48,831,261 $814,321,192
============ ============ =========== ============
</TABLE>
102
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
<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 ..................................... $ 3,702 $ 6,276 $ 17,244 $ 4,452
Paid-in Capital .................................. 49,011,690 101,961,496 230,848,557 124,640,722
Undistributed Net Investment Income .............. 14,492 (108,082) (602,189) 288,810
Accumulated Net Realized Gain/(Loss) ............. 2,289,278 9,586,270 4,697,382 4,490,381
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ............. 25,782,000 67,811,918 102,772,730 6,414,311
----------- ------------ ------------ ------------
Net Assets ....................................... $77,101,162 $179,257,878 $337,733,724 $135,838,676
=========== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
EMERGING
INDEX BALANCED INTERNATIONAL MARKETS
FUND FUND FUND FUND
------------ ----------- ------------- -----------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value .................................... $ 16,205 $ 3,848 $ 16,234 $ 3,539
Paid-in Capital ................................. 296,267,034 48,959,873 231,245,146 30,502,306
Undistributed Net Investment Income ............. 73,391 32,416 1,798,008 45,837
Accumulated Net Realized Gain/(Loss) ............ 5,715,043 1,886,331 (3,100,328) (5,972,378)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ............ 210,125,211 4,249,493 7,813,397 4,842,019
------------ ----------- ------------ -----------
Net Assets ...................................... $512,196,884 $55,131,961 $237,772,457 $29,421,323
============ =========== ============ ===========
</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 invests 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.
103
<PAGE>
HARRIS INSIGHT (REGISTRATION MARK) FUNDS
FOUR FALLS CORPORATE CENTER, 6TH FLOOR
WEST CONSHOHOCKEN, PA 19428-2961
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 60690
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
DISTRIBUTOR
Provident Distributors, Inc.
Four Falls Corporate Center, 6th Floor
West Conshohocken, Pennsylvania 19428
CUSTODIAN
PFPC Trust Co.
Airport Business Center
200 Stevens Drive
Lester, Pennsylvania 19113
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers 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 since 1993 and formerly Co-Chairman, Jones Lang LaSalle (real
estate investment management and consulting); and Board Member, 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, Farmers Investment Trust, and
PEG Capital Management.
JOHN W. MCCARTER, JR.
President and Chief Executive Officer, The Field Museum of Natural History
(Chicago); Former Senior Vice President and Director, Booz-Allen & Hamilton,
Inc. (consulting firm); and Board Member, LaSalle Partners U.S. Real Estate
Fund, 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 WOLFF
President, Governors State University; Chair, University of Chicago Hospitals;
and Board Member, Ariel Capital Management, Inc.
OFFICERS
PHILIP H. RINNANDER
President
JASON A. GREIM
Vice President
GARY M. GARDNER
Secretary
DAVID LEBISKY
Assistant Secretary
THOMAS J. RYAN
Treasurer and Chief Financial Officer
L. LINN SOLANO
Assistant Treasurer
<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:
Provident Distributors, Inc.
HIF 1252 06/99
