HARRIS
INSIGHT(R) FUNDS
SEMI-ANNUAL REPORT
JUNE 30, 2000
[GRAPHIC OMITTED]
HARRIS
INSIGHT (R) FUNDS
POWERFUL INSIGHT. SOLID INVESTMENTS.(R)
<PAGE>
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
<PAGE>
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER:
We are pleased to report to you performance results for the Harris Insight Funds
for the six-month period ended June 30, 2000.
CAPITAL MARKETS 2000
Evidence continues to mount that the six increases in short-term interest rates
implemented by the Federal Reserve Bank (Fed) over the last year are slowing the
U.S. economy. Economists expect second quarter Gross National Product (GNP),
when reported, to range between 3% and 4% -- down from a gain of 5.5% in the
first quarter. More importantly, the consensus expects the second half of 2000
to show a continued deceleration that is anticipated to negatively impact a
number of consumer areas such as general retailing, housing, and automobile
sales.
The GNP slowing is perceived as a positive event because it may lead the Fed to
stop raising interest rates and provide an environment of ongoing modest
inflation. When coupled with continued budget surpluses and a growing global
economy, this presents an attractive backdrop for the capital markets during the
second half of 2000.
EQUITIES
During the first six months of 2000, equity markets experienced some of the most
dramatic volatility in their history. The NASDAQ, with its heavy weighting of
technology and interest-related issues, declined more than 37% from mid-April to
mid-May, only to rebound 15% in June. Investors also retreated from paying
ever-higher prices for growth stocks and moved toward a more conservative
attitude embodying a belief in earnings and asking companies to have a
reasonable future business plan to make a profit. Underlying these swings was a
change in sentiment from outright fear of ongoing aggressive tightening by the
Fed to a belief, more recently, that the tightening was near an end.
These changes in investor perceptions also caused shifts in the best-performing
areas of the market. For the six-month period ended June 30, small companies
actually outperformed larger companies. Small-capitalization value stocks
significantly outperformed small growth stocks, but large growth stocks
continued to outperform large value stocks. Technology was no longer the best
performing sector as healthcare, utilities and energy bested it.
HARRIS INSIGHT VALUE 2000
Our longstanding emphasis on relative value was rewarded in the first half of
the year. Focusing portfolio holdings on securities with reasonable valuations
and improving fundamentals led to many of our equity funds performing well
against comparative indexes and peer managers.
1
<PAGE>
LETTER TO SHAREHOLDERS
(CONTINUED)
FIXED INCOME
Interest rates fell during the first six months of the year, with the yield on
the ten-year U.S. Treasury bond declining from 6.44% to 6.02%. This result was
somewhat counter-intuitive given that the Fed was raising money-market rates by
a full percentage point during the same period. Nonetheless, bonds produced more
attractive returns after a disappointing 1999.
The Harris Insight Funds performed well in this environment both in nominal
terms and relative to other fund families. Year-to-date through June 30, each of
our five long-term bond funds ranked in or near the top 10% of its fund category
according to Lipper Analytical Services. The three Harris Insight Money Market
Funds, perennial top performers, also ranked in the top half of their respective
categories.
OUR MANAGEMENT APPROACH
Harris Investment Management's equity investment philosophy focuses on 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. We continue to enhance our models to identify valuation
factors that work better in today's economy, without abandoning our disciplined
management style that has served so well over the years. The late 1990's
notwithstanding, small-cap stocks have historically outperformed larger
companies and value stocks have historically outperformed growth stocks. We look
forward to the market's renewed focus on earnings and valuations.
Whether you are new to our growing Fund family or have been an investor with us
since the Funds' inception, we thank you for the confidence you have placed in
us. We value our relationship with you and encourage you to contact us with any
comments or suggestions as to how we may better serve your investing needs.
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
STATEMENTS OF NET
ASSETS/SCHEDULES OF INVESTMENTS
MONEY MARKET FUNDS:
Government Money Market Fund Page 4
Money Market Fund Page 5
Tax-Exempt Money Market Fund Page 7
FIXED INCOME FUNDS:
Short/Intermediate Bond Fund Page 11
Bond Fund Page 16
Intermediate Government Bond Fund Page 20
Intermediate Tax-Exempt Bond Fund Page 22
Tax-Exempt Bond Fund Page 26
Convertible Securities Fund Page 29
EQUITY FUNDS:
Equity Fund Page 33
Equity Income Fund Page 36
Growth Fund Page 39
Small-Cap Opportunity Fund Page 42
Small-Cap Value Fund Page 46
Index Fund Page 49
Balanced Fund Page 56
International Fund Page 60
Emerging Markets Fund Page 63
STATEMENTS OF OPERATIONS PAGE 66
STATEMENTS OF CHANGES IN NET ASSETS PAGE 68
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY PAGE 72
FINANCIAL HIGHLIGHTS PAGE 78
NOTES TO FINANCIAL STATEMENTS PAGE 90
<PAGE>
HARRIS INSIGHT FUNDS
GOVERNMENT MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
AGENCY OBLIGATIONS -- 33.2%
FEDERAL FARM CREDIT BANK -- 3.0%
5.850% 12/01/00 $15,000 $ 14,985,013
------------
FEDERAL HOME LOAN BANK -- 14.2%
5.560% 07/14/00 10,000 10,000,051
5.915% 10/13/00 15,000 14,997,318
6.450% 02/16/01 15,000 14,996,496
6.668% 04/06/01 15,000 14,996,866
6.680% 05/08/01 16,350 16,314,741
------------
71,305,472
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 16.0%
6.400% 07/20/00 41,000 40,861,511
5.620% 08/09/00 15,000 14,998,140
5.890% 11/24/00 25,000 24,973,195
------------
80,832,846
------------
TOTAL AGENCY OBLIGATIONS
(Cost $167,123,331) 167,123,331
------------
ZERO COUPON BONDS -- 1.0%
FEDERAL HOME LOAN MORTGAGE CORP.
(Cost $4,835,343)
0.000% 01/16/01 5,000 4,835,343
------------
VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER)-- 18.9%
FEDERAL HOME LOAN BANK -- 7.0%
6.485% 07/12/00* 20,000 19,998,810
6.508% 07/21/00* 15,000 14,999,007
------------
34,997,817
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 11.9%
6.530% 07/03/00* 30,000 30,000,000
6.820% 07/03/00* 10,000 9,999,782
6.880% 07/03/00* 20,000 19,998,524
------------
59,998,306
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $94,996,123) 94,996,123
------------
REPURCHASE AGREEMENTS -- 42.7%
Bank of Tokyo N.A.
6.750%
Agreement dated 06/30/00,
proceeds at maturity
$98,055,125 (Collateralized
by $617,631,000 FHLMC
and FNMA 0.000% to 6.375%,
due from 08/14/01 to
12/14/29. The market value
is $99,960,683.) 07/03/00 98,000 98,000,000
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
REPURCHASE AGREEMENTS (CONTINUED)
Donaldson, Lufkin, & Jenrette
Securities Corp.
6.750%
Agreement dated 06/30/00,
proceeds at maturity
$97,413,426 (Collateralized
by $98,895,323 FHLMC and
FNMA 6.151% to 8.750%, due
from 04/01/10 to 10/01/38.
The market value is
$99,307,774.) 07/03/00 $97,358 $ 97,358,662
Lehman Brothers, Inc.
6.700%
Agreement dated 06/30/00,
proceeds at maturity
$20,011,167 (Collateralized
by $20,687,000 FHLB and
FNMA 0.000%, due from
09/14/00 to 09/15/00. The
market value is $20,400,961.) 07/03/00 20,000 20,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $215,358,662) 215,358,662
------------
SHARES
-------
TEMPORARY INVESTMENTS -- 4.3%
AIM Short-Term Investment Trust
Treasury Portfolio 12,932 12,932
Provident Institutional Funds T-Fund 21,824,207 21,824,207
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $21,837,139) 21,837,139
------------
TOTAL INVESTMENTS -- 100.1%
(Cost $504,150,598) 504,150,598
------------
OTHER ASSETS AND LIABILITIES -- (0.1%)
Interest receivable and other assets 2,330,499
Dividends payable (2,493,797)
Accrued expenses (165,602)
------------
(328,900)
------------
NET ASSETS -- 100.0%
Applicable to 218,172,884 Institutional
Shares and 285,731,189 N Shares
of beneficial interest outstanding,
$.001 par value (Note 7) $503,821,698
============
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 06/30/00.
* Date of next interest rate reset.
See Notes to Financial Statements.
4
<PAGE>
HARRIS INSIGHT FUNDS
MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
ASSET-BACKED SECURITIES -- 4.4%
Nissan Auto Receivables Owner
Trust Series 2000-B, Class A1
6.831% 07/16/01 $89,000 $ 88,986,381
Wesley Commercial & Residential
Funding Series 2000-1, Class A
6.704% 07/31/00 8,026 8,026,442
World Financial Properties
6.606% 07/10/00 30,459 30,459,492
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $127,472,315) 127,472,315
------------
CERTIFICATES OF DEPOSIT -- 6.0%
Banque National de Paris
6.700% 02/08/01 114,850 114,816,862
Societe Generale
6.540% 01/16/01 60,000 59,984,466
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $174,801,328) 174,801,328
------------
COMMERCIAL PAPER -- 20.9%
GTE Corp.
6.600% 07/06/00 13,000 12,988,083
Lower Colorado River Authority
6.360% 07/06/00 75,500 75,500,000
Moriarty, Ltd.
6.570% 07/14/00 41,542 41,443,442
Quincy Capital Corp.
6.570% 07/18/00 82,210 81,954,943
Receivables Capital Corp.
6.750% 07/21/00 10,040 10,002,350
6.700% 07/27/00 38,722 38,534,629
Sheffield Receivables Corp.
6.560% 07/18/00 112,000 111,653,049
Surrey Funding Corp.
6.620% 07/05/00 50,000 49,963,222
6.550% 07/14/00 49,102 48,985,860
Variable Funding Capital Corp.
6.605% 07/11/00 100,000 100,000,000
Windmill Funding Corp.
6.560% 07/13/00 17,886 17,846,889
6.560% 07/14/00 20,885 20,835,526
------------
TOTAL COMMERCIAL PAPER
(Cost $609,707,993) 609,707,993
------------
CORPORATE BONDS -- 16.1%
AT&T Capital Corp.
7.500% 11/15/00 44,780 44,972,204
Bank One Corp.
6.170% 10/16/00 98,500 98,486,448
Beta Finance, Inc.
6.571% 01/16/01 20,000 20,000,000
6.760% 02/15/01 40,000 40,000,000
Caterpillar Financial Service Corp.
5.230% 03/01/01 13,000 12,883,418
CoreStates Capital Corp.
5.750% 01/15/01 7,400 7,368,692
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
CORPORATE BONDS (CONTINUED)
General Motors Acceptance Corp.
5.800% 08/07/00 $12,500 $ 12,500,065
Goldman Sachs Group
6.620% 07/05/00 25,000 25,000,000
Heller Financial, Inc.
5.480% 02/05/01 32,000 31,756,970
Huntington National Bank
5.950% 09/29/00 65,500 65,489,197
John Deere Capital Corp.
6.080% 12/18/00 8,000 7,981,227
Lehman Brothers Holdings, Inc.
7.290% 09/25/00 5,000 5,011,048
6.890% 10/10/00 5,000 5,007,122
6.500% 12/01/00 10,000 9,995,884
6.900% 01/29/01 11,000 11,012,198
Liberty Lighthouse US Capital Co.
5.700% 07/17/00 36,000 35,996,773
6.820% 03/06/01 23,000 22,997,090
NationsBank Corp.
5.750% 01/25/01 10,900 10,853,847
--------------
TOTAL CORPORATE BONDS
(Cost $467,312,183) 467,312,183
--------------
TIME DEPOSITS -- 8.2%
Barclays P.L.C.
7.000% 07/05/00 50,000 50,000,000
Canadian Imperial Bank Commerce
7.063% 07/03/00 100,000 100,000,000
Norwest Bank
7.000% 07/03/00 88,892 88,891,890
--------------
TOTAL TIME DEPOSITS
(Cost $238,891,890) 238,891,890
--------------
VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER)-- 43.5%
AT&T Corp.
6.566% 07/10/00* 64,500 64,495,737
6.240% 07/13/00 50,000 49,999,344
Beta Finance, Inc.
6.700% 07/03/00* 40,000 40,000,000
Caterpillar Financial Service Corp.
6.271% 07/07/00* 70,000 70,000,000
CFM International
6.700% 07/03/00* 53,640 53,640,000
CIT Group, Inc.
6.640% 07/03/00* 50,000 49,979,100
First Union National Bank
6.680% 07/03/00* 40,000 39,994,674
6.830% 08/16/00* 50,000 50,000,000
Ford Motor Credit Co.
6.830% 09/14/00* 40,000 40,016,317
Goldman Sachs Group
6.714% 07/14/00* 11,300 11,325,317
6.406% 07/15/00* 49,000 49,000,000
6.490% 07/25/00* 28,000 28,025,756
Heller Financial, Inc.
6.350% 07/03/00* 70,000 69,977,953
See Notes to Financial Statements.
5
<PAGE>
HARRIS INSIGHT FUNDS
MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER) (CONTINUED)
Household Finance Corp.
6.715% 07/03/00* $66,500 $ 66,432,835
6.690% 07/03/00* 48,000 48,000,000
Huntington National Bank
6.898% 08/30/00* 23,000 23,000,000
John Hancock Mutual Life Insurance Co.
6.771% 07/17/00* 80,000 80,000,000
Liberty Lighthouse US Capital Co.
6.698% 07/21/00* 50,000 49,996,702
Madison, Wisconsin, Community
Development Authority Revenue Bonds
6.720% 07/05/00* 9,220 9,220,000
Morgan Stanley Dean Witter
6.753% 09/18/00* 75,000 75,000,000
Northern Rock P.L.C.
6.650% 07/20/00* 70,000 70,000,000
Oakland-Alameda County, California,
Coliseum Authority Lease Revenue
Bonds
6.670% 07/05/00* 15,000 15,000,000
Pennsylvania Economic Development
Finance Authority Revenue Bonds
6.750% 07/06/00* 5,800 5,800,000
RACERS Series 1999-26 Class A
6.791% 07/17/00 65,500 65,499,914
RACERS Series 2000-6 Class MM
6.488% 07/26/00* 65,000 65,000,000
Rural Electric Cooperative Grantor Trust
(Kansas Electric Power Cooperative)
6.600% 07/05/00* 11,100 11,100,000
Sacramento County, California,
Municipal Bond
6.800% 07/05/00* 66,500 66,500,000
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $1,267,003,649) 1,267,003,649
--------------
ANNUALIZED
YIELD/RATE SHARES VALUE(DAGGER)
---------- -------- -------------
TEMPORARY INVESTMENTS -- 0.0%
AIM Short-Term Investment Trust
Treasury Portfolio 7 $ 7
Goldman Sachs Financial Square
Money Market Portfolio 34,584 34,584
J.P. Morgan Institutional Prime
Money Market Portfolio 1 1
--------------
TOTAL TEMPORARY INVESTMENTS
(Cost $34,592) 34,592
--------------
TOTAL INVESTMENTS -- 99.1%
(Cost $2,885,223,950) 2,885,223,950
--------------
OTHER ASSETS AND LIABILITIES -- 0.9%
Interest receivable and other assets 30,888,849
Receivable for securities sold 76,890,987
Payable for securities purchased (66,556,876)
Dividends payable (14,722,988)
Accrued expenses (736,483)
--------------
25,763,489
--------------
NET ASSETS -- 100.0%
Applicable to 1,822,671,298 Institutional
Shares and 1,088,309,146 N Shares
of beneficial interest outstanding,
$.001 par value (Note 7) $2,910,987,439
==============
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 06/30/00.
* Date of next interest rate reset.
See Notes to Financial Statements.
6
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS -- 102.4%
ALABAMA -- 3.4%
Chatom, Alabama, Industrial Development
Board Pollution Control Revenue Bonds
(Alabama Electric Project) TECP
4.300% 09/08/00 $ 5,000 $ 5,000,000
Columbia, Alabama, Industrial Development
Board Pollution Control Revenue Bonds
(Alabama Power Co. Project) Series C VR
4.750% 07/01/00 24,600 24,600,000
------------
29,600,000
------------
ALASKA -- 9.8%
Alaska State Housing Financial Corp.
Governmental Purpose Revenue Bonds
(University of Alaska) Series A VR
4.850% 07/07/00 31,400 31,400,000
Anchorage, Alaska, Electric Utility
Revenue Bonds Series 1996D VR
4.800% 07/07/00 7,700 7,700,000
Anchorage, Alaska, TANS
4.750% 02/02/01 5,000 5,018,404
Valdez, Alaska, Marine Terminal Revenue
Bonds (Arco Transportation Project)
Series C TECP
4.400% 07/10/00 20,000 20,000,000
4.100% 07/11/00 20,000 20,000,000
------------
84,118,404
------------
ARIZONA -- 0.2%
Maricopa County, Arizona, Pollution
Control Corp. Revenue Refunding Bonds
(Arizona Public Service Co.) Series B VR
4.600% 07/01/00 1,700 1,700,000
------------
CONNECTICUT -- 0.2%
Connecticut State Special Assessment
Unemployment Compensation Advance
Fund Revenue Bonds (Connecticut
Unemployment Project) Series 1993C PS
3.600% 07/01/00 1,800 1,800,000
------------
DELAWARE -- 0.6%
Delaware State General Obligation Bonds
Series A
4.500% 02/01/01 5,270 5,281,929
------------
FLORIDA -- 6.0%
Dade County, Florida, Industrial
Development Authority Exempt Facilities
Revenue Refunding Bonds (Florida
Power & Light Co.) VR
4.600% 07/01/00 20,150 20,150,000
Putnam County, Florida, Development
Authority Pollution Control Revenue
Bonds (Seminole Electric) VR
4.850% 07/07/00 3,415 3,415,000
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
FLORIDA (CONTINUED)
Sunshine State Government Finance
Commission Series A TECP
4.400% 07/26/00 $10,530 $ 10,530,000
4.150% 07/31/00 5,000 5,000,000
Sunshine State Government Finance
Commission Series B TECP
4.500% 07/31/00 12,210 12,210,000
------------
51,305,000
------------
GEORGIA -- 5.2%
Burke County, Georgia, Development
Authority Pollution Control Revenue
Bonds (Georgia Power Co. Plant Vogtle
Project) 3rd Series VR
4.600% 07/01/00 2,300 2,300,000
Burke County, Georgia, Development
Authority Pollution Control Revenue
Bonds (Georgia Power Co. Plant Vogtle
Project) 4th Series VR
4.750% 07/01/00 11,350 11,350,000
Georgia Municipal Electric Authority
(Project One) Series A TECP
4.200% 09/11/00 15,100 15,100,000
Monroe County, Georgia, Development
Authority Pollution Control Revenue
Bonds (Georgia Power Co.) 2nd Series VR
4.750% 07/01/00 15,700 15,700,000
------------
44,450,000
------------
IDAHO -- 0.4%
Idaho State TANS
5.375% 06/29/01 3,500 3,533,320
------------
ILLINOIS -- 11.3%
Chicago, Illinois, General Obligation Notes
4.000% 10/26/00 3,000 3,000,000
Illinois Development Finance Authority
Pollution Control Revenue Bonds
(Amoco Oil Co. Project) VR
4.550% 07/01/00 1,800 1,800,000
Illinois Development Finance Authority
Revenue Bonds (McCormick Theological)
Series A VR
4.800% 07/07/00 3,785 3,785,000
Illinois Development Finance Authority
Revenue Bonds (North Park
University) VR
4.650% 07/07/00 23,000 23,000,000
Illinois Development Finance Authority
Revenue Bonds (Presbyterian Home
Lake) Series A VR
4.800% 07/07/00 28,000 28,000,000
Illinois Development Finance Authority
Revenue Bonds (Provena Health Project)
Series B VR
4.600% 07/01/00 21,400 21,400,000
See Notes to Financial Statements.
7
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS (CONTINUED)
Illinois Development Finance Authority
Revenue Bonds (Roosevelt University
Project) VR
4.800% 07/07/00 $ 6,500 $ 6,500,000
Illinois Health Facilities Authority Revenue
Bonds (Southern Illinois Healthcare)
Series B VR
4.800% 07/07/00 9,915 9,915,000
------------
97,400,000
------------
INDIANA -- 10.8%
ABN AMRO Munitops Certificates
Series 5 VR
4.820% 07/07/00 20,746 20,746,000
Indiana Health Facilities Finance Authority
Revenue Bonds (Acension Health Credit)
Series B VR
5.100% 07/07/00 20,000 20,000,000
Indiana State Office Building Commission
(Hoosier Notes) TECP
4.250% 10/23/00 25,000 25,000,000
Indiana State Office Building Commission
Facilities Revenue Bonds (Pendleton
Juvenile Facility) Series A VR
4.650% 07/07/00 10,000 10,000,000
Rockport, Indiana, Pollution Control
Revenue Bonds (Indiana & Michigan
Power Co. Project) Series A VR
4.850% 07/07/00 3,845 3,845,000
Rockport, Indiana, Pollution Control
Revenue Bonds (Indiana & Michigan
Power Co. Project) Series B VR
4.900% 07/07/00 13,000 13,000,000
------------
92,591,000
------------
IOWA -- 0.8%
Iowa School Corps Warrants Certificates,
Iowa School Cash Anticipation Program
4.750% 02/01/01 4,500 4,517,764
Polk County, Iowa, Hospital Equipment
Authority Revenue Bonds VR
4.800% 07/07/00 2,725 2,725,000
------------
7,242,764
------------
KENTUCKY -- 2.8%
Kentucky Asset Liability Commission
General Fund Series A TRANS
5.250% 06/27/01 9,000 9,060,120
Kentucky Economic Development Finance
Authority Hospital Facilities Revenue
Bonds (Baptist Healthcare System)
Series C VR
4.600% 07/01/00 4,200 4,200,000
Mason County, Kentucky, Pollution Control
Revenue Bonds (East Kentucky Power
Co-Op) Series B-2 VR
4.850% 07/07/00 4,900 4,900,000
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
KENTUCKY (CONTINUED)
Mason County, Kentucky, Pollution Control
Revenue Bonds (East Kentucky Power
Co-Op) Series B-3 VR
4.850% 07/07/00 $ 5,610 $ 5,610,000
------------
23,770,120
------------
LOUISIANA -- 7.8%
Caddo Parish, Louisiana, Industrial
Development Board Revenue Bonds
(Atlas Project) Series B VR
4.850% 07/07/00 3,400 3,400,000
Lake Charles, Louisiana, Harbor Terminal
District Revenue Bonds (Conoco, Inc.
Project) Series A VR
4.800% 07/07/00 12,100 12,100,000
Louisiana State, Offshore Terminal
Authority Deepwater Port Revenue
Bonds (Loop, Inc. Project) VR
4.450% 07/01/00 10,400 10,400,000
Louisiana Public Facilities Authority
Hospital Revenue Bonds (Willis-Knighton
Medical Center Project) VR
4.700% 07/06/00 22,980 22,980,000
West Baton Rouge Parish, Louisiana,
Industrial District No. 3 Revenue Bonds
(Dow Chemical Co. Project) Series B VR
4.650% 07/01/00 18,300 18,300,000
------------
67,180,000
------------
MICHIGAN -- 1.7%
Michigan State Strategic Fund Pollution
Control Revenue Refunding Bonds
(Consumers Power Project) VR
4.600% 07/01/00 15,000 15,000,000
------------
MINNESOTA -- 1.2%
Rochester, Minnesota, Health Care Facility
(Mayo Foundation) TECP
4.100% 07/18/00 10,000 10,000,000
------------
MISSOURI -- 5.0%
Missouri State Development Finance
Board Infrastructure Facilities Revenue
Bonds (Social City Union Station Asset
Corp.) Series B VR
4.750% 07/01/00 9,100 9,100,000
Missouri State Health & Educational
Facilities Authority Revenue Bonds
(Washington University) Series A VR
4.600% 07/01/00 31,600 31,600,000
Missouri State Health & Educational
Facilities Authority Revenue Bonds
(Washington University) Series B VR
4.600% 07/01/00 2,500 2,500,000
------------
43,200,000
------------
See Notes to Financial Statements.
8
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
NEBRASKA -- 2.1%
Nebraska Public Power District Electric
System Revenue Bonds TECP
4.000% 07/06/00 $10,000 $ 10,000,000
3.900% 07/20/00 7,975 7,975,000
------------
17,975,000
------------
NEW JERSEY -- 1.0%
New Jersey State General Obligation
Bonds
4.500% 03/01/01 8,520 8,542,005
------------
NEW MEXICO -- 4.2%
Albuquerque, New Mexico, General
Obligation Bonds Series A
3.750% 07/01/00 1,000 1,000,000
Farmington, New Mexico, Pollution
Control Revenue Refunding Bonds
(Arizona Public Service Co.) Series A VR
4.450% 07/01/00 28,000 28,000,000
Farmington, New Mexico, Pollution
Control Revenue Refunding Bonds
(Arizona Public Service Co.) Series B VR
4.450% 07/01/00 7,450 7,450,000
------------
36,450,000
------------
NEW YORK -- 4.0%
New York City, New York, General
Obligation Bonds Series B VR
4.750% 07/01/00 1,500 1,500,000
New York City, New York, Transitional
Finance Authority Revenue Bonds VR
4.850% 07/01/00 29,000 29,000,000
New York State General Obligation Bonds
Series B
6.375% 08/15/00 3,750 3,759,671
------------
34,259,671
------------
NORTH DAKOTA -- 0.1%
Mercer County, North Dakota, Pollution
Control Revenue Bonds (United
Power-National Rural Utilities Project)
Series 84C VR
4.850% 07/07/00 995 995,000
------------
OHIO -- 1.3%
Cincinnati, Ohio, General Obligation Bonds
4.375% 12/01/00 6,700 6,710,072
Ohio State Public Facilities Commission
Higher Education Capital Facilities
Revenue Bonds Series II-A
4.500% 12/01/00 4,050 4,058,151
------------
10,768,223
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
OKLAHOMA -- 2.9%
Muskogee, Oklahoma, Industrial Trust
Pollution Control Revenue Bonds
(Oklahoma Gas & Electric Co.)
Series A VR
4.800% 07/07/00 $19,300 $ 19,300,000
Tulsa, Oklahoma, Industrial Authority
Revenue Bonds (University of Tulsa)
Series B VR
4.800% 07/07/00 5,550 5,550,000
------------
24,850,000
------------
OREGON -- 1.3%
Multnomah County, Oregon, (Portland
School District) No. 1J TRANS
5.000% 06/29/01 11,000 11,062,150
------------
SOUTH CAROLINA -- 1.2%
York County, South Carolina, Pollution
Control Revenue Bonds PS
4.050% 09/15/00 10,000 10,000,000
------------
TEXAS -- 7.1%
Denton, Texas, Independent School
District General Obligation Bonds
Series B PS
3.650% 08/15/00 7,000 6,998,789
Houston, Texas, Water & Sewer Systems
Revenue Bonds Series A29 VR
5.000% 07/07/00 2,800 2,800,000
Nueces County, Texas, Health Facilities
Development Corp. Revenue Bonds
(Driscoll Children's Foundation
Project) VR
4.850% 07/07/00 9,205 9,205,000
Sabine River, Texas, Industrial
Development Authority Revenue Bonds
(National Rural Utilities Project) PS
4.000% 08/15/00 3,495 3,495,000
Texas Higher Education Authority,
Educational Equipment & Improvement
Revenue Bonds VR
4.800% 07/07/00 6,895 6,895,000
Texas Small Business Industrial
Development Revenue Bonds VR
4.850% 07/07/00 25,000 25,000,000
Texas State TRANS Series A
4.500% 08/31/00 6,700 6,707,864
------------
61,101,653
------------
UTAH -- 0.6%
Intermountain Power Agency Power
Supply Revenue Bonds TECP
4.200% 08/08/00 5,100 5,100,000
------------
See Notes to Financial Statements.
9
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA -- 1.7%
Clarke County, Virginia, Industrial
Development Authority Hospital
Facilities Revenue Bonds (Winchester
Medical Center, Inc.) VR
4.800% 07/07/00 $15,000 $ 15,000,000
------------
WASHINGTON -- 1.8%
Washington State General Obligation Bonds
4.250% 07/01/00 2,845 2,845,000
Washington State Health Care Facilities
Authority Revenue Bonds (Fred
Hutchinson Cancer Center) VR
4.750% 07/01/00 13,000 13,000,000
------------
15,845,000
------------
WEST VIRGINIA -- 1.7%
ABN AMRO Munitops Certificates Trust
Series 1999-4 PS
4.550% 09/27/00 14,822 14,822,000
------------
WISCONSIN -- 3.4%
Beaver Dam, Wisconsin, United School
District TRANS
4.000% 08/24/00 5,000 5,001,773
Elkhorn, Wisconsin, Area School District
TRANS
4.030% 08/25/00 4,000 4,000,747
Maple Dale-Indian Hill, Wisconsin,
School District TRANS
4.000% 08/21/00 2,700 2,701,088
Racine, Wisconsin, United School District
TRANS
3.750% 07/06/00 10,000 10,000,336
Shorewood, Wisconsin, School District
TRANS
4.000% 09/01/00 3,865 3,866,315
Waunakee, Wisconsin, Community
School District TRANS
4.000% 09/15/00 3,800 3,801,134
------------
29,371,393
------------
WYOMING -- 0.8%
Gillette, Wyoming, Pollution Control
Revenue Bonds (Pacificorp) VR
4.800% 07/07/00 2,200 2,200,000
Platte County, Wyoming, Pollution Control
Revenue Bonds (Tri-State Generation &
Transmission Project) Series A VR
4.750% 07/01/00 5,000 5,000,000
------------
7,200,000
------------
TOTAL MUNICIPAL BONDS
(Cost $881,514,632) 881,514,632
------------
SHARES VALUE(DAGGER)
------- ------------
TEMPORARY INVESTMENTS -- 0.1%
Federated Tax-Free Obligation Fund 645,007 $ 645,007
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 86,673 86,673
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $731,680) 731,680
------------
TOTAL INVESTMENTS -- 102.5%
(Cost $882,246,312) 882,246,312
------------
OTHER ASSETS AND LIABILITIES -- (2.5%)
Interest receivable and other assets 5,302,224
Payable for securities purchased (23,655,590)
Dividends payable (2,877,085)
Accrued expenses (231,968)
------------
(21,462,419)
------------
NET ASSETS -- 100.0%
Applicable to 657,438,413 Institutional
Shares and 203,350,474 N Shares of
beneficial interest outstanding, $.001
par value (Note 7) $860,783,893
============
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.
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
06/30/00. Maturity date is the later of the next interest rate
change or exercise of the demand feature.
TANS -- Tax Anticipation Note.
TECP -- Tax-Exempt Commercial Paper.
TRANS -- Tax and Revenue Anticipation Note.
See Notes to Financial Statements.
10
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
AGENCY OBLIGATIONS -- 4.0%
Federal Home Loan Bank
7.360% 07/01/04 $ 1,000 $ 1,011,514
Federal Home Loan Mortgage Corp.
7.100% 04/10/07 2,500 2,507,022
5.750% 03/15/09 3,600 3,274,027
Federal National Mortgage Association
7.125% 03/15/07 5,815 5,839,656
------------
TOTAL AGENCY OBLIGATIONS
(Cost $12,652,187) 12,632,219
------------
ASSET-BACKED SECURITIES -- 19.0%
AK Bank Series 1998-A, Class 1
8.749% 07/15/05 2,521 2,482,238
ARG Funding Corp. Series 1999-1A,
Class A2
5.880% 05/20/03 3,500 3,430,420
Arran One Ltd. Series 2000-A, Class A
6.950% 03/15/05 5,000 5,000,000
California Infrastructure Pacific Gas &
Electric Series 1997-1, Class A7
6.420% 09/25/08 3,669 3,564,103
Case Equipment Loan Trust Series 1997-A,
Class B
6.700% 03/15/04 1,250 1,237,863
Charming Shoppes Master Trust
Series 1997-1, Class A
7.001% 04/15/06 2,500 2,459,375
Chemical Credit Card Master Trust I
Series 1996-1, Class A
5.550% 09/15/03 3,000 2,975,850
Citibank Credit Card Master Trust I
Series 1997-3, Class A
6.839% 02/10/04 6,500 6,455,865
Citibank Credit Card Master Trust
Series 1999-3, Class A
6.220% 03/15/04 4,080 4,071,840
Credit Card Receivable Trust
Series 1998-IA, Class A
6.478% 12/22/04 2,428 2,374,041
Discover Card Master Trust I
Series 1999-1, Class A
5.300% 08/15/04 2,125 2,062,950
Gracechurch Card Funding P.L.C.
Series 1, Class A
6.831% 11/15/04 4,000 4,003,750
Household Home Equity Loan Trust
Series 1999-1, Class A3
7.210% 10/20/30 5,365 5,256,198
MBNA Master Credit Card Trust
Series 1998-C, Class C
6.350% 11/15/05 3,000 2,859,375
MBNA Master Credit Card Trust
Series 2000-A, Class C
7.900% 07/16/07 3,700 3,711,563
Metris Master Trust Series 1997-1, Class A
6.870% 10/20/05 1,725 1,717,238
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
ASSET-BACKED SECURITIES (CONTINUED)
Onyx Acceptance Grantor Trust,
Series 1998-A, Class A3
5.850% 08/15/02 $ 1,586 $ 1,581,276
Toyota Auto Lease Trust Series 1997-A,
Class B
6.750% 04/26/04 3,500 3,436,016
Toyota Auto Receivables Owner Trust
Series 2000-A, Class A4
7.210% 04/15/07 672 669,270
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $60,020,886) 59,349,231
------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 20.6%
Asset Securitization Corp. Series 1997-D4,
Class PS1 IO
1.252% 04/14/29 66,161 3,898,214
BankBoston Marine Asset-Backed Trust
Series 1997-2, Class A7
6.820% 04/15/13 500 488,070
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A4
6.358% 11/25/08 4,052 3,986,276
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A5
5.718% 11/25/08 1,361 1,264,915
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A6
8.500% 11/25/08 819 814,834
Countrywide Funding Corp. Series 1994-5,
Class A7F
6.102% 03/25/09 2,915 2,772,861
Countrywide Funding Corp. Series 1994-5,
Class A7S
5.971% 03/25/09 1,097 888,915
Countrywide Funding Corp. Series 1994-5,
Class A7T
9.000% 03/25/09 696 694,173
DLJ Mortgage Acceptance Corp.
Series 1995-Q1, Class A1-S IO
2.028% 03/25/25 48 6,660
DLJ Mortgage Acceptance Corp.
Series 1996-M, Class A1
7.280% 11/28/11 4,320 4,041,118
DLJ Mortgage Acceptance Corp.
Series 1997-CF2, Class CP IO
1.364% 11/15/04 51,000 2,518,125
Federal Home Loan Mortgage Corp.
Series 150, Class IO
7.500% 07/01/23 1,241 390,566
Federal Home Loan Mortgage Corp.
Series 1597, Class G PO
7.547% 07/15/23 1,345 1,080,648
Federal Home Loan Mortgage Corp.
Series 2100, Class GA
6.000% 04/15/12 4,651 4,509,936
Federal National Mortgage Association
Series 1993-183, Class M
6.500% 07/25/23 2,000 1,894,507
See Notes to Financial Statements.
11
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Series 1993-197, Class SB
4.429% 10/25/08 $ 6,082 $ 4,863,773
Federal National Mortgage Association
Series 1994-85, Class E
6.000% 11/25/06 620 614,315
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 17,509 1,177,461
Federal National Mortgage Association
Series 1997-70, Class PE PO
7.968% 04/25/22 3,405 2,585,569
Federal National Mortgage Association
Series 1998-T1, Class A
6.604% 12/28/28 2,387 2,272,176
J.P. Morgan Commercial Mortgage
Finance Corp. Series 1999-C7, Class A2
6.507% 10/15/35 3,250 3,058,770
Morgan Stanley Capital I Series 1998-HF2,
Class A1
6.010% 11/15/30 2,459 2,341,976
Morgan Stanley Capital I Series 1998-WF1,
Class A1
6.250% 07/15/07 3,184 3,080,596
Morgan Stanley Capital I Series 1999-WF1,
Class A2
6.210% 09/15/08 2,260 2,095,811
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 931 926,481
PNC Mortgage Securities Corp.
Series 1996-2, Class A4
6.600% 02/25/11 4,534 4,272,763
PNC Mortgage Securities Corp.
Series 1997-5, Class A8
6.750% 10/25/27 6,000 5,970,000
Structured Asset Securities Corp.
Series 1998-R3, Class A1 IO
6.100% 01/15/13 10,649 1,943,431
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $67,839,404) 64,452,940
------------
MORTGAGE-BACKED SECURITIES -- 5.4%
Federal Home Loan Mortgage Corp.
Pool #C00515
7.500% 05/01/27 413 409,558
Federal National Mortgage Association
7.000% 01/15/30 5,500 5,304,922
8.000% 01/15/30 1,050 1,054,102
Federal National Mortgage Association
Pool #303724
6.000% 01/01/11 4,210 4,058,273
Federal National Mortgage Association
Pool #305189
9.000% 01/01/25 17 17,906
Federal National Mortgage Association
Pool #305555
9.000% 01/01/25 128 132,583
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Federal National Mortgage Association
Pool #306031
9.000% 02/01/25 $ 187 $ 194,270
Federal National Mortgage Association
Pool #306674
9.000% 03/01/25 78 80,728
Federal National Mortgage Association
Pool #317306
9.000% 07/01/25 105 108,429
Federal National Mortgage Association
Pool #338001
9.000% 10/01/25 6 5,986
Government National Mortgage Association
Pool #8747
7.125% 11/20/25 95 94,444
Government National Mortgage Association
Pool #326150
7.000% 09/15/23 154 151,032
Government National Mortgage Association
Pool #333668
7.000% 07/15/23 392 385,267
Government National Mortgage Association
Pool #345039
7.000% 09/15/23 522 512,526
Government National Mortgage Association
Pool #345536
7.000% 01/15/24 332 325,778
Government National Mortgage Association
Pool #351638
7.000% 06/15/23 605 594,538
Government National Mortgage Association
Pool #377553
7.000% 07/15/25 468 457,747
Government National Mortgage Association
Pool #383330
7.000% 07/15/25 565 552,258
Government National Mortgage Association
Pool #391901
7.000% 07/15/25 428 418,065
Government National Mortgage Association
Pool #397755
7.000% 05/15/24 541 530,119
Government National Mortgage Association
Pool #406568
7.000% 07/15/25 661 646,364
Government National Mortgage Association
Pool #407660
7.000% 07/15/25 424 414,565
Government National Mortgage Association
Pool #780023
7.000% 09/15/24 528 513,911
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $17,014,681) 16,963,371
------------
See Notes to Financial Statements.
12
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
CORPORATE BONDS -- 29.9%
ELECTRIC -- 1.1%
Consolidated Edison Co., Inc.
6.625% 07/01/05 $ 2,150 $ 2,078,811
Texas Utilities Electric Co.
6.750% 04/01/03 1,440 1,417,068
------------
3,495,879
------------
FINANCE - BANK -- 3.2%
Bank One Corp.
6.400% 08/01/02 2,500 2,455,785
BankAmerica Corp.
7.500% 10/15/02 2,320 2,325,642
Mercantile Bancorp
7.050% 06/15/04 3,170 3,105,754
NationsBank Corp.
6.500% 08/15/03 2,310 2,251,656
------------
10,138,837
------------
FINANCE - NON-BANK -- 10.8%
American Express Credit Corp.
6.125% 11/15/01 440 432,977
Associates Corp. of North America
5.750% 10/15/03 190 179,643
Associates Corp. of North America
Euro Bond
6.875% 06/20/02 1,775 1,752,102
Beneficial Corp.
8.400% 05/15/08 45 45,878
Beneficial Finance Corp. MTN
9.130% 07/25/01 1,000 1,020,112
Capital One Bank
8.250% 06/15/05 3,525 3,521,535
Case Credit Corp.
5.930% 02/26/01 4,000 3,963,496
EOP Operating LP
8.375% 03/15/06 2,500 2,528,463
ERP Operating LP
7.100% 06/23/04 3,500 3,407,278
General Motors Acceptance Corp.
7.625% 06/15/04 3,375 3,379,472
Hartford Life, Inc.
7.100% 06/15/07 3,725 3,590,710
Household Finance Corp.
6.000% 05/01/04 1,200 1,131,804
Lehman Brothers Holdings, Inc.
7.375% 05/15/04 4,540 4,440,302
Morgan Stanley Dean Witter & Co.
7.000% 01/28/02 3,800 3,785,636
5.625% 01/20/04 535 502,622
------------
33,682,030
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
CORPORATE BONDS (CONTINUED)
INDUSTRIAL -- 7.0%
Cendant Corp.
7.750% 12/01/03 $ 1,530 $ 1,478,655
Ford Motor Co.
9.000% 09/15/01 4,000 4,079,480
Lockheed Martin Corp.
7.450% 06/15/04 3,535 3,510,877
Mirage Resorts, Inc.
6.750% 02/01/08 1,835 1,622,094
Monsanto Co.
5.750% 12/01/05 4,480 4,197,231
Rite Aid Corp.
7.125% 01/15/07 915 471,225
Sears, Roebuck & Co. MTN
8.390% 02/14/02 800 809,535
Tele-Communications, Inc.
9.800% 02/01/12 1,760 2,023,456
Tyco International Group S.A.
6.375% 06/15/05 3,800 3,592,938
------------
21,785,491
------------
OIL -- 2.0%
Atlantic Richfield Co.
9.125% 03/01/11 100 113,526
Conoco, Inc.
5.900% 04/15/04 1,525 1,453,905
Petro Mexicanos Finance, Ltd.
5.720% 11/15/03 2,559 2,488,020
Phillips Petroleum Co.
8.500% 05/25/05 2,300 2,382,531
------------
6,437,982
------------
TELEPHONES -- 4.4%
GTE North, Inc.
6.400% 02/15/05 3,575 3,428,232
Sprint Capital Corp.
5.875% 05/01/04 4,115 3,879,873
Vodafone Airtouch P.L.C.
6.650% 05/01/08 3,000 2,813,829
Worldcom, Inc.
6.400% 08/15/05 3,705 3,515,615
------------
13,637,549
------------
TRANSPORTATION -- 1.4%
Federal Express Corp.
7.500% 01/15/18 1,529 1,484,659
Norfolk Southern Corp.
7.350% 05/15/07 3,000 2,917,536
------------
4,402,195
------------
TOTAL CORPORATE BONDS
(Cost $95,972,839) 93,579,963
------------
SUPRANATIONAL BONDS -- 1.0%
African Development Bank
(Cost $3,042,545)
7.750% 12/15/01 3,000 3,024,891
------------
See Notes to Financial Statements.
13
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
YANKEE BONDS -- 2.8%
Banco Santiago S.A.
7.000% 07/18/07 $ 3,730 $ 3,325,817
Empresa Nacional Electric
7.750% 07/15/08 2,400 2,233,997
Korea Development Bank
7.375% 09/17/04 1,415 1,379,343
Sanwa Finance Aruba AEC
8.350% 07/15/09 1,685 1,680,723
------------
TOTAL YANKEE BONDS
(Cost $9,197,559) 8,619,880
------------
U.S. TREASURY OBLIGATIONS -- 16.5%
U.S. TREASURY NOTES
6.625% 07/31/01 1,185 1,187,222
6.375% 09/30/01 500 499,219
7.500% 11/15/01 1,650 1,671,655
5.875% 11/30/01 2,290 2,270,679
6.625% 04/30/02 1,215 1,218,418
5.750% 10/31/02 6,025 5,938,391
5.750% 08/15/03 1,600 1,573,000
7.875% 11/15/04 23,930 25,337,354
7.000% 07/15/06 9,720 10,072,350
6.500% 02/15/10 1,680 1,735,612
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $51,409,805) 51,503,900
------------
SHARES
----------
TEMPORARY INVESTMENTS -- 0.8%
Goldman Sachs Financial Square
Money Market Portfolio 2,246,976 2,246,976
Goldman Sachs Institutional Liquid Assets
Money Market Portfolio 112,109 112,109
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $2,359,085) 2,359,085
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $319,508,991) $312,485,480
============
------------------------
(DAGGER) See Note 2a to the Financial Statements.
MTN -- Medium Term Note.
IO -- Interest Only Security.
PO -- Principal Only Security; interest rate is effective yield.
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
----------- ------------
Futures Contracts -- Long Position
U.S. Treasury Notes, September 2000 50 $781
== ====
See Notes to Financial Statements.
14
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $319,508,991) .................... $312,485,480
Collateral for securities loaned ............................ 40,454,269
Interest receivable ......................................... 3,831,101
Receivable for securities sold .............................. 11,719,778
Receivable for capital stock sold ........................... 584,290
Futures margin receivable ................................... 5,469
Other assets ................................................ 93,277
------------
Total assets ......................................... 369,173,664
------------
LIABILITIES
Payable upon return of securities loaned .................... 40,454,269
Payable for securities purchased ............................ 17,617,966
Payable for capital stock redeemed .......................... 1,166,787
Dividends payable ........................................... 1,622,940
Accrued expenses ............................................ 165,086
------------
Total liabilities .................................... 61,027,048
------------
NET ASSETS
Applicable to 31,075,588 Institutional Shares, 380,249
N Shares and 14,738 A Shares of beneficial interest
outstanding, $.001 par value (Note 7) ........................ $308,146,616
=============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($304,278,996/31,075,588) .................................... $ 9.79
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($3,723,313/380,249) ......................................... $ 9.79
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($144,307/14,738 ............................................. $ 9.79
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($9.79/0.965) (Note 5) ....................................... $10.15
======
See Notes to Financial Statements.
15
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
AGENCY OBLIGATIONS -- 3.5%
Federal Home Loan Mortgage Corp.
5.750% 03/15/09 $ 4,450 $ 4,047,061
6.750% 09/15/29 1,630 1,563,520
------------
TOTAL AGENCY OBLIGATIONS
(Cost $5,627,925) 5,610,581
------------
ASSET-BACKED SECURITIES -- 16.5%
AK Bank Series 1998-A, Class 1
8.749% 07/15/05 1,214 1,195,152
ARG Funding Corp. Series 1999-1A,
Class A2
5.880% 05/20/03 1,400 1,372,168
California Infrastructure Pacific Gas &
Electric Series 1997-1, Class A7
6.420% 09/25/08 2,055 1,996,248
Case Equipment Loan Trust
Series 1997-A, Class B
6.700% 03/15/04 750 742,717
Charming Shoppes Master Trust
Series 1997-1, Class A
7.001% 04/15/06 2,500 2,459,375
Chemical Credit Card Master Trust
Series 1995-2, Class A
6.230% 06/15/03 610 608,804
Citibank Credit Card Master Trust I
Series 1997-3, Class A
6.839% 02/10/04 3,500 3,476,235
Discover Card Master Trust I
Series 1999-1, Class A
5.300% 08/15/04 2,250 2,184,300
First Plus Home Loan Trust
Series 1997-3, Class A6
7.080% 07/10/17 1,125 1,117,215
Household Credit Card Master Trust I
Series 1995-1, Class A
6.821% 12/15/02 390 389,934
Household Home Equity Loan Trust
Series 1999-1, Class A3
7.210% 10/20/30 2,000 1,959,440
MBNA Master Credit Card Trust
Series 1998-C, Class C
6.350% 11/15/05 1,250 1,191,406
MBNA Master Credit Card Trust
Series 2000-A, Class C
7.900% 07/16/07 1,500 1,504,687
Metris Master Trust Series 1997-1, Class A
6.870% 10/20/05 3,350 3,334,925
Team Fleet Financing Corp.
Series 1997-1, Class A
7.350% 05/15/03 1,625 1,620,076
Toyota Auto Lease Trust
Series 1997-A, Class B
6.750% 04/26/04 1,500 1,472,578
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $26,992,964) 26,625,260
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 22.3%
Asset Securitization Corp. Series 1997-D4,
Class PS1 IO
1.252% 04/14/29 $21,948 $ 1,293,190
Chase Commercial Mortgage Securities
Corp. Series 1997-1, Class A1
7.270% 07/19/04 1,102 1,100,803
Chase Mortgage Finance Corp.
Series 1999-S10, Class A18
6.500% 08/25/29 2,700 2,538,810
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A4
6.358% 11/25/08 2,116 2,082,004
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A5
5.718% 11/25/08 711 660,656
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A6
8.500% 11/25/08 428 425,583
Countrywide Funding Corp. Series 1994-11,
Class A12
3.006% 05/25/24 24 24,460
DLJ Mortgage Acceptance Corp.
Series 1996-M, Class A1
7.280% 11/28/11 576 538,815
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
6.427% 05/25/28 1,385 1,253,855
Federal Home Loan Mortgage Corp.
Series 1848, Class PG
7.000% 05/15/26 4,773 4,460,798
Federal Home Loan Mortgage Corp.
Series 1875, Class SA IO
6.388% 09/15/03 5,784 627,193
Federal Home Loan Mortgage Corp.
Series 2075, Class QG
6.250% 12/15/26 3,035 2,848,803
Federal Home Loan Mortgage Corp.
Series 2131, Class VD
6.000% 05/15/14 2,412 2,178,567
Federal National Mortgage Association
Series 145, Class 1 PO
9.525% 06/25/22 1,235 942,959
Federal National Mortgage Association
Series 1993-210, Class S
5.844% 11/25/23 1,145 804,363
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 8,857 595,608
J.P. Morgan Commercial Mortgage
Finance Corp. Series 1999-C7, Class A2
6.507% 10/15/35 1,750 1,647,030
Merrill Lynch Mortgage Investors, Inc.
Series 1998-C2, Class A1
6.220% 02/15/30 965 933,855
Morgan Stanley Capital I Series 1998-HF2,
Class A1
6.010% 11/15/30 1,250 1,190,115
See Notes to Financial Statements.
16
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Morgan Stanley Capital I Series 1998-WF1,
Class A1
6.250% 07/15/07 $ 138 $ 133,086
Morgan Stanley Capital I Series 1999-WF1,
Class A2
6.210% 09/15/08 1,080 1,001,538
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 631 628,630
PNC Mortgage Securities Corp.
Series 1997-5, Class A8
6.750% 10/25/27 2,188 2,176,672
Residential Asset Securitization Trust
Series 1998-A5, Class A5
6.750% 06/25/28 3,500 3,321,845
Residential Funding Mortgage Security I
Series 1993-S20, Class A11
7.250% 06/25/08 1,580 1,568,200
Structured Asset Securities Corp.
Series 1998-R3, Class A1 IO
6.100% 01/15/13 5,091 929,183
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $37,875,233) 35,906,621
------------
MORTGAGE-BACKED SECURITIES -- 16.1%
Federal National Mortgage Association
6.000% 01/15/30 7,045 6,442,873
7.000% 01/15/30 7,900 7,619,797
8.000% 01/15/30 240 240,938
Federal National Mortgage Association
Pool #250888
7.000% 04/01/12 1,013 997,516
Federal National Mortgage Association
Pool #305555
9.000% 01/01/25 130 135,476
Federal National Mortgage Asscciation
Pool #323668
6.000% 08/01/13 5,506 5,218,516
Federal National Mortgage Association
Pool #359740
7.000% 10/01/26 139 134,862
Federal National Mortgage Association
Pool #364248
7.000% 01/01/27 266 258,181
Federal National Mortgage Association
Pool #364731
7.000% 12/01/26 162 157,413
Government National Mortgage
Association Pool #780167
7.000% 12/15/24 4,877 4,749,363
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $26,179,035) 25,954,935
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
CORPORATE BONDS -- 20.2%
ELECTRIC -- 1.7%
Pacific Gas & Electric Co.
7.050% 03/01/24 $ 1,970 $ 1,824,070
Public Service Electric & Gas Co.
6.500% 05/01/04 1,000 974,282
------------
2,798,352
------------
FINANCE - BANK -- 0.3%
NationsBank Corp.
7.250% 10/15/25 590 533,107
------------
FINANCE - NON-BANK -- 7.8%
Capital One Bank
8.250% 06/15/05 1,900 1,898,132
Commercial Credit Co.
7.750% 03/01/05 210 212,515
EOP Operating LP
8.375% 03/15/06 1,225 1,238,947
ERP Operating LP
7.100% 06/23/04 2,500 2,433,770
Ford Motor Credit Corp.
5.800% 01/12/09 675 588,149
General Motors Acceptance Corp.
7.625% 06/15/04 720 720,954
5.850% 01/14/09 110 96,360
7.750% 01/19/10 1,820 1,810,119
Household Finance Corp.
6.000% 05/01/04 1,000 943,170
PaineWebber Group, Inc.
6.750% 02/01/06 1,000 930,143
Salomon Smith Barney Holdings, Inc.
6.500% 10/15/02 200 196,412
Spieker Properties LP
6.800% 05/01/04 1,670 1,601,659
------------
12,670,330
------------
INDUSTRIAL -- 5.3%
Cendant Corp.
7.750% 12/01/03 825 797,314
Cox Communications, Inc.
6.800% 08/01/28 1,890 1,621,115
Ford Motor Co.
7.500% 08/01/26 490 458,999
Lockheed Martin Corp.
7.450% 06/15/04 1,900 1,887,034
8.500% 12/01/29 700 714,724
Mirage Resorts, Inc.
6.750% 02/01/08 1,055 932,594
Monsanto Co.
5.750% 12/01/05 2,260 2,117,353
------------
8,529,133
------------
OIL -- 0.9%
Conoco, Inc.
6.950% 04/15/29 245 223,941
Petro Mexicanos Finance, Ltd.
5.720% 11/15/03 1,194 1,161,076
------------
1,385,017
------------
See Notes to Financial Statements.
17
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
CORPORATE BONDS (CONTINUED)
TELEPHONES -- 3.1%
GTE North, Inc.
6.400% 02/15/05 $ 1,265 $ 1,213,067
Sprint Capital Corp.
6.900% 05/01/19 990 880,918
Vodafone Airtouch P.L.C.
6.650% 05/01/08 660 619,042
7.750% 02/15/10 650 645,521
Worldcom, Inc.
8.250% 05/15/10 1,625 1,666,070
------------
5,024,618
------------
TRANSPORTATION -- 1.1%
CSX Corp.
7.250% 05/01/27 1,745 1,705,205
Federal Express Corp.
7.500% 01/15/18 1 1,296
6.720% 01/15/22 3 2,539
------------
1,709,040
------------
TOTAL CORPORATE BONDS
(Cost $33,127,159) 32,649,597
------------
SUPRANATIONAL BONDS -- 1.2%
African Development Bank
(Cost $2,028,363)
7.750% 12/15/01 2,000 2,016,594
------------
YANKEE BONDS -- 4.7%
Banco Santiago S.A.
7.000% 07/18/07 1,610 1,435,540
Empresa Nacional Electric
7.750% 07/15/08 1,700 1,582,414
Korea Development Bank
7.375% 09/17/04 1,045 1,018,667
Sanwa Finance Aruba AEC
8.350% 07/15/09 1,000 997,462
Sony Corp.
6.125% 03/04/03 2,210 2,157,192
United Utilities P.L.C.
6.450% 04/01/08 500 446,776
------------
TOTAL YANKEE BONDS
(Cost $8,045,275) 7,638,051
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
U.S. TREASURY OBLIGATIONS -- 8.8%
U.S. TREASURY BONDS -- 1.1%
8.750% 08/15/20 $ 185 $ 237,378
5.250% 02/15/29 670 594,625
6.125% 08/15/29 850 859,777
------------
1,691,780
------------
U.S. TREASURY NOTES -- 3.5%
7.250% 08/15/04 2,340 2,418,975
5.625% 05/15/08 2,788 2,689,550
6.500% 02/15/10 560 578,537
------------
5,687,062
------------
U.S. TREASURY STRIPS -- 4.2%
0.000% 11/15/04 8,873 6,747,570
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $14,021,747) 14,126,412
------------
MUNICIPAL BONDS -- 0.9%
Atlanta, Georgia, Water & Wastewater
Revenue Bonds Series A
(Cost $1,402,761)
5.000% 11/01/38 1,675 1,441,622
------------
SHARES
------
TEMPORARY INVESTMENTS -- 5.8%
Goldman Sachs Financial Square
Money Market Portfolio 4,759,096 4,759,096
Goldman Sachs Institutional Liquid Assets
Money Market Portfolio 4,638,913 4,638,913
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $9,398,009) 9,398,009
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $164,698,471) $161,367,682
============
----------------------
(DAGGER) See Note 2a to the Financial Statements.
IO -- Interest Only Security.
PO -- Principal Only Security; interest rate is effective yield.
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
----------- ------------
Futures Contracts -- Long Position
U.S. Treasury Notes, September 2000 160 $2,500
=== ======
See Notes to Financial Statements.
18
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $164,698,471) .................... $161,367,682
Collateral for securities loaned ............................ 2,760,268
Interest receivable ......................................... 1,620,127
Receivable for securities sold .............................. 16,125,549
Receivable for capital stock sold ........................... 163,438
Futures margin receivable ................................... 17,500
Other assets ................................................ 337,787
------------
Total assets ......................................... 182,392,351
------------
LIABILITIES
Payable upon return of securities loaned .................... 2,760,268
Payable for securities purchased ............................ 30,235,818
Payable for capital stock redeemed .......................... 752,747
Dividends payable ........................................... 772,214
Accrued expenses ............................................ 81,430
------------
Total liabilities .................................... 34,602,477
------------
NET ASSETS
Applicable to 15,060,341 Institutional Shares,
386,678 N Shares and 3,005 A Shares of beneficial
interest outstanding, $.001 par value (Note 7) ............... $147,789,874
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($144,062,176/15,060,341) .................................... $ 9.57
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER N SHARE
($3,698,953/386,678) ......................................... $ 9.57
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($28,745/3,005) .............................................. $ 9.57
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($9.57/0.955) (Note 5) ....................................... $10.02
======
See Notes to Financial Statements.
19
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
AGENCY OBLIGATIONS -- 46.1%
AID-Honduras
13.000% 06/01/01 $ 346 $ 357,511
AID-Peru
9.980% 08/01/08 2,890 3,138,166
Federal Farm Credit Bank
7.170% 04/25/02 3,500 3,509,835
Federal Home Loan Bank
4.860% 10/05/01 2,500 2,439,387
Federal Home Loan Mortgage Corp.
6.250% 07/15/04 2,500 2,432,893
7.010% 07/11/07 850 825,845
5.125% 10/15/08 5,000 4,360,840
5.750% 03/15/09 1,000 909,452
6.750% 09/15/29 2,000 1,918,430
Federal National Mortgage Association
5.125% 02/13/04 3,470 3,262,681
6.400% 06/14/04 2,085 2,029,941
6.510% 05/06/08 2,000 1,888,356
Private Export Funding Corp.
7.030% 10/31/03 1,650 1,650,734
Rowan Cos., Inc.
6.150% 07/01/10 3,850 3,600,328
Small Business Administration Participation
Certificates Series 1995-20J, Class 1
6.850% 10/01/15 2,696 2,589,307
Small Business Administration Participation
Certificates Series 1997-10C, Class 1
6.950% 05/01/07 1,114 1,101,953
------------
TOTAL AGENCY OBLIGATIONS
(Cost $37,024,220) 36,015,659
------------
ASSET-BACKED SECURITIES -- 13.4%
Citibank Credit Card Master Trust I
Series 1998-3, Class A
5.800% 02/07/05 525 508,095
Citibank Credit Card Master Trust I
Series 1999-5, Class A
6.100% 05/15/08 1,000 946,000
Contimortgage Home Equity Loan Trust
Series 1998-2, Class A5
6.280% 09/15/16 2,500 2,438,375
Green Tree Home Equity Loan Trust
Series 1998-A, Class A5 IO
8.000% 06/15/29 10,000 471,875
Green Tree Home Equity Loan Trust
Series 1999-A, Class A3
5.980% 04/15/18 2,875 2,820,605
Metris Master Trust Series 1997-1,
Class A
6.870% 10/20/05 2,000 1,991,000
Toyota Auto Receivables Owner Trust
Series 2000-A, Class A4
7.210% 04/15/07 1,346 1,340,532
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $10,737,161) 10,516,482
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 16.2%
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
6.427% 05/28/28 $ 1,122 $ 1,015,878
Federal Home Loan Mortgage Corp.
Series 150, Class IO
7.500% 07/01/23 939 295,507
Federal Home Loan Mortgage Corp.
Series 202 IO
6.500% 04/01/29 1,767 587,090
Federal Home Loan Mortgage Corp.
Series 1597, Class G PO
7.912% 07/15/23 1,018 817,633
Federal Home Loan Mortgage Corp.
Series 2171, Class B
6.279% 06/15/09 3,000 2,764,688
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 5,973 401,657
Federal National Mortgage Association
Series 1998-M2, Class CP1 IO
0.945% 02/17/02 51,375 706,406
Federal National Mortgage Association
Series 1998-T1, Class A
6.604% 12/28/28 1,934 1,840,429
First Union-Lehman Brothers Commercial
Series 1997-C2, Class A3
6.650% 12/18/07 2,000 1,909,304
Government National Mortgage Association
Series 1999-2, Class C PO
4.640% 12/20/23 2,145 1,567,821
Structured Asset Securities Corp.
Series 1998-R3, Class A1 IO
6.100% 01/15/13 4,231 772,138
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $14,151,863) 12,678,551
------------
MORTGAGE-BACKED SECURITIES -- 16.7%
Federal Home Loan Mortgage Corp.
Pool #865008
7.929% 02/01/18 30 30,631
Federal National Mortgage Association
6.500% 01/15/30 1,365 1,286,299
Federal National Mortgage Association
Pool #8217
11.000% 12/01/15 801 877,429
Federal National Mortgage Association
Pool #73738
6.825% 11/01/01 3,672 3,644,800
Federal National Mortgage Association
Pool #303724
6.000% 01/01/11 2,164 2,085,816
Federal National Mortgage Association
Pool #375255
6.920% 07/01/04 973 956,767
Government National Mortgage Association
Pool #8720
6.500% 10/20/25 160 159,819
See Notes to Financial Statements.
20
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Government National Mortgage Association
Pool #162989
9.000% 05/15/16 $ 10 $ 10,796
Government National Mortgage Association
Pool #227125
9.000% 07/15/17 15 15,239
Government National Mortgage Association
Pool #346458
8.000% 03/15/23 142 145,565
Government National Mortgage Association
Pool #352110
7.000% 08/15/23 2,045 2,008,170
Government National Mortgage Association
Pool #780389
9.000% 08/15/09 1,730 1,814,419
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $12,003,799) 13,035,750
------------
U.S. TREASURY OBLIGATIONS -- 11.1%
U.S. TREASURY BONDS -- 4.1%
8.750% 08/15/20 2,500 3,207,813
------------
U.S. TREASURY STRIPS -- 7.0%
0.000% 11/15/04 7,209 5,482,163
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $8,865,592) 8,689,976
------------
SHARES
------
TEMPORARY INVESTMENTS -- 1.0%
Goldman Sachs Financial Square
Treasury Obligation Portfolio
(Cost $766,205) 766,205 766,205
------------
TOTAL INVESTMENTS -- 104.5%
(Cost $83,548,840) 81,702,623
------------
VALUE(DAGGER)
-------------
OTHER ASSETS AND LIABILITIES -- (4.5%)
Interest receivable and other assets $ 1,289,942
Receivable for securities sold 1,288,216
Receivable for capital stock sold 632,580
Payable for securities purchased (2,562,303)
Payable for capital stock redeemed (4,086,278)
Dividends payable (26,084)
Accrued expenses (40,630)
------------
(3,504,557)
------------
NET ASSETS -- 100.0%
Applicable to 4,673,313 Institutional Shares,
301,995 N Shares and 2,845 A Shares of
beneficial interest outstanding,
$.001 par value (Note 7) $ 78,198,066
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
SHARE ($73,409,542/4,673,313) $15.71
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($4,743,834/301,995) $15.71
======
NET ASSET VALUE AND REDEMPTION
PRICE PER A SHARE ($44,690/2,845) $15.71
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($15.71/0.965) (NOTE 5) $16.28
======
-----------------------
(DAGGER) See Note 2a to the Financial Statements.
IO - Interest Only Security.
PO - Principal Only Security; interest rate is effective yield.
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
--------- ------------
Futures Contracts -- Long Position
U.S. Treasury Notes, September 2000 128 $49,945
=== =======
See Notes to Financial Statements.
21
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS -- 99.0%
ALABAMA -- 0.8%
University of Alabama Hospital Revenue
Bonds Series A
5.100% 09/01/07 $ 500 $ 502,045
5.125% 09/01/08 500 499,800
5.200% 09/01/09 500 498,885
------------
1,500,730
------------
ARIZONA -- 11.2%
Arizona Health Facilities Authority, Arizona
Hospital Systems Revenue Bonds
(Samaritan Health Services)
6.250% 12/01/06 4,000 4,300,280
Glendale, Arizona, General Obligation
Bonds
5.000% 07/01/07 1,110 1,115,184
Glendale, Arizona, Water & Sewer
Revenue Bonds
5.500% 07/01/08 2,700 2,798,766
5.500% 07/01/09 5,000 5,182,800
Maricopa County, Arizona, Community
College District General Obligation
Bonds Series B
5.000% 07/01/13 250 242,792
Phoenix, Arizona, Civic Improvement Corp.
Wastewater Systems Revenue Bonds
6.250% 07/01/16 4,945 5,260,343
Phoenix, Arizona, Civic Plaza Building
Corporate Excise Tax Revenue Bonds
6.000% 07/01/12 1,000 1,045,920
Surprise, Arizona, Municipal Property
Corporate Excise Tax Revenue Bonds
5.375% 07/01/14 1,000 997,560
------------
20,943,645
------------
CALIFORNIA -- 1.9%
Sacramento County, California, Sanitation
District Financing Authority Revenue
Bonds Series A
6.000% 12/01/20 3,450 3,513,894
------------
COLORADO -- 0.3%
Metropolitan Football Stadium District,
Colorado Sales Tax Capital Appreciation
Revenue Bonds Series A
0.000% 01/01/11 900 512,118
------------
CONNECTICUT -- 1.4%
New Haven, Connecticut, General
Obligation Bonds Series B
5.500% 11/01/12 2,550 2,637,057
------------
DELAWARE -- 2.5%
Delaware River & Bay Authority, Delaware
Revenue Bonds Series A
5.700% 01/01/19 1,000 1,004,170
Delaware State General Obligation Bonds
6.125% 04/01/01 3,700 3,748,100
------------
4,752,270
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
FLORIDA -- 4.2%
Inland Protection Financing Corp., Florida
Special Obligation Revenue Bonds
5.000% 07/01/02 $ 2,000 $ 2,015,380
Jacksonville, Florida, Electric Authority
Electric Systems Revenue Bonds
Series 3A
5.800% 10/01/18 1,080 1,091,416
Jacksonville, Florida, Electric Authority
Electric Systems Revenue Bonds
Subseries D
5.250% 10/01/09 1,000 1,007,010
5.300% 10/01/10 1,000 1,007,000
5.375% 10/01/11 1,720 1,732,281
Miami-Dade County, Florida, Educational
Facilities Authority Revenue Bonds
Series A
5.750% 04/01/14 1,000 1,036,200
------------
7,889,287
------------
GEORGIA -- 3.3%
College Park, Georgia, Business &
Industrial Development Authority
Revenue Bonds (Civic Center Project)
5.125% 09/01/08 655 659,945
5.500% 09/01/09 1,855 1,911,336
Fayette County, Georgia, Public Facilities
Authority Criminal Justice Center
Revenue Bonds
6.000% 06/01/16 1,500 1,573,560
6.250% 06/01/17 1,000 1,063,250
Forsyth County, Georgia, Water & Sewer
Authority Revenue Bonds
6.250% 04/01/18 1,000 1,057,870
------------
6,265,961
------------
ILLINOIS -- 1.2%
Chicago, Illinois, General Obligation Bonds
(Neighborhoods Alive 21)
6.125% 01/01/22 2,265 2,331,591
------------
INDIANA -- 4.5%
Anderson, Indiana, Economic Development
Revenue Bonds (Anderson University
Project)
5.000% 10/01/07 1,010 962,025
5.000% 10/01/08 1,015 960,444
Indiana Health Facility Financing Authority
Hospital Revenue Bonds (Clarian Health
Partners) Series A
6.000% 02/15/05 3,000 3,089,610
Indiana University Revenue Bonds
(Student Fee) Series M
6.000% 08/01/14 3,170 3,313,601
------------
8,325,680
------------
See Notes to Financial Statements.
22
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
KANSAS -- 2.5%
Kansas State Development Finance
Authority Public Water Supply
Revenue Bonds
5.000% 04/01/08 $ 1,035 $ 1,037,556
5.000% 04/01/10 765 762,606
5.125% 04/01/11 1,860 1,857,563
5.200% 04/01/12 1,000 996,440
------------
4,654,165
------------
KENTUCKY -- 1.5%
Hartford County, Kentucky, School District
Financial Corp. School Building Revenue
Bonds
5.700% 06/01/20 550 546,733
Kentucky State Property & Buildings
Commission Revenue Bonds
(Project No. 66) Series A
5.000% 05/01/04 300 302,466
5.050% 05/01/05 400 403,716
5.100% 05/01/06 300 302,985
5.150% 05/01/07 800 808,184
5.200% 05/01/08 525 531,688
------------
2,895,772
------------
LOUISIANA -- 0.6%
Mississippi River Bridge Authority,
Louisiana Revenue Bonds
6.625% 11/01/06 1,130 1,194,139
------------
MASSACHUSETTS -- 9.6%
Lowell, Massachusetts, General Obligation
Bonds
6.000% 02/15/14 1,160 1,226,561
6.000% 02/15/15 1,070 1,123,982
Massachusetts State General Obligation
Bonds Series B
5.500% 06/01/06 1,500 1,548,675
6.000% 06/01/15 2,000 2,086,320
6.000% 06/01/16 5,000 5,196,350
Massachusetts State Health & Educational
Facilities Authority Revenue Bonds
(Northeastern University) Series D
7.125% 10/01/00 1,500 1,539,030
Southbridge, Massachusetts, General
Obligation Bonds
6.375% 01/01/12 1,000 1,043,900
Springfield, Massachusetts, General
Obligation Bonds (Municipal Purposes
Loan)
6.000% 10/01/14 1,000 1,055,930
6.000% 10/01/15 2,000 2,098,400
Sterling, Massachusetts, General
Obligation Bonds
6.000% 02/15/18 1,000 1,033,740
------------
17,952,888
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN -- 8.2%
Chippewa County, Michigan, Hospital
Finance Revenue Bonds (Chippewa
County War Memorial Hospital)
Series A
5.000% 11/01/04 $ 1,075 $ 1,023,755
Chippewa County, Michigan, Hospital
Finance Revenue Bonds (Chippewa
County War Memorial Hospital) Series B
5.000% 11/01/04 1,365 1,299,930
Michigan State Building Authority
Revenue Bonds Series II
6.750% 10/01/07 3,000 3,135,690
Michigan State Hospital Finance Authority
Revenue Bonds (Ascension Health
Credit) Series A
5.300% 11/15/33 2,500 2,486,525
Michigan State Hospital Finance Authority
Revenue Bonds (Ascension Health
Credit) Series B
5.375% 11/15/33 3,630 3,609,055
Michigan State Hospital Finance Authority
Revenue Bonds (Chelsea Community
Hospital)
5.375% 05/15/19 2,500 1,945,550
Rochester, Michigan, Community School
District General Obligation Bonds
Series I
5.500% 05/01/07 1,240 1,273,914
University of Michigan, Revenue Bonds
(Major Capital Project Student Fee B)
5.700% 04/01/09 545 559,710
------------
15,334,129
------------
MINNESOTA -- 1.7%
St. Cloud, Minnesota, Health Care Revenue
Bonds (St. Cloud Hospital Obligation
Group-A)
5.250% 05/01/05 1,080 1,095,509
5.500% 05/01/15 1,080 1,078,823
5.750% 05/01/26 1,000 982,750
------------
3,157,082
------------
MISSISSIPPI -- 3.9%
Mississippi River Bridge Authority
Revenue Bonds
6.750% 11/01/12 6,000 6,336,420
Mississippi State General Obligation
Bonds
5.000% 06/01/05 1,000 1,007,300
------------
7,343,720
------------
See Notes to Financial Statements.
23
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
MISSOURI -- 1.3%
St. Louis County, Missouri, Pattonville R-3
School District General Obligation Bonds
5.500% 03/01/12 $ 1,240 $ 1,276,183
5.750% 03/01/17 450 456,768
5.750% 03/01/18 655 665,133
------------
2,398,084
------------
MONTANA -- 1.6%
Forsyth, Montana, Pollution Control Revenue
Bonds (Portland General Electric Co.
Project) Series A
4.600% 05/01/33 3,000 2,937,000
------------
NEW HAMPSHIRE -- 0.7%
Manchester, New Hampshire, General
Airport Revenue Bonds Series A
4.200% 01/01/11 1,455 1,300,217
------------
NEW JERSEY -- 2.2%
Essex County, New Jersey, Improvement
Authority Lease Revenue General
Obligation Bonds (County Correctional
Facilities Project)
5.750% 10/01/13 2,000 2,076,620
New Jersey State Transportation Trust
Fund Revenue Bonds (Transit Systems)
Series A
5.125% 06/15/08 1,950 1,972,113
------------
4,048,733
------------
NEW YORK -- 8.0%
New York Metropolitan Transportation
Authority Dedicated Tax Fund Revenue
Bonds Series A
6.125% 04/01/16 3,000 3,167,370
6.125% 04/01/17 2,000 2,102,300
New York State Thruway Authority Highway
& Bridge Trust Fund Revenue Bonds
Series A
6.000% 04/01/14 1,000 1,054,580
6.000% 04/01/15 1,000 1,050,970
6.000% 04/01/16 1,000 1,053,160
Suffolk County, New York, Longwood
Central School District General Obligation
Bonds
5.625% 06/15/08 1,080 1,126,634
5.625% 06/15/09 1,580 1,649,283
5.700% 06/15/14 1,670 1,719,298
5.700% 06/15/15 1,895 1,940,272
------------
14,863,867
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA -- 1.5%
Charlotte, North Carolina, Storm Water
Fee Revenue Bonds
5.650% 06/01/14 $ 1,000 $ 1,022,820
Iredell County, North Carolina, Public
Facilities Corp. Installment Revenue
Bonds (School Projects)
5.000% 06/01/11 1,830 1,796,749
------------
2,819,569
------------
OHIO -- 10.4%
Butler County, Ohio, Hospital Facility
Revenue Bonds (Middletown
Regulatory Hospital Project)
6.750% 11/15/10 2,250 2,351,475
Cuyahoga County, Ohio, Hospital Revenue
Improvement Bonds (Metrohealth
System Project) Series A
5.500% 02/15/12 1,000 1,020,590
6.150% 02/15/29 1,620 1,546,630
Franklin County, Ohio, Development
Revenue Bonds (American Chemical
Society Project)
5.500% 10/01/12 4,600 4,621,022
Hamilton, Ohio, City School District School
Improvement General Obligation Bonds
Series A
6.150% 12/01/13 200 215,554
Ohio State University General Receipts
Revenue Bonds Series A
5.750% 12/01/13 1,000 1,043,310
5.750% 12/01/14 1,000 1,036,350
6.000% 12/01/17 1,000 1,037,580
Plain, Ohio, Local School District General
Obligation Bonds
6.000% 12/01/20 5,000 5,147,800
University of Akron, Ohio, General
Receipts Revenue Bonds
5.750% 01/01/12 1,295 1,349,882
------------
19,370,193
------------
OKLAHOMA -- 1.2%
Oklahoma State Capital Improvement
Authority Highway Revenue Bonds
5.000% 06/01/04 2,255 2,281,181
------------
PENNSYLVANIA -- 4.4%
Delaware River Port Authority of
Pennsylvania & New Jersey Revenue
Bonds
5.750% 01/01/15 1,000 1,024,960
6.000% 01/01/17 5,500 5,692,885
Pottsville, Pennsylvania, Hospital Authority
Revenue Bonds (Ascension Health
Credit) Series A
5.200% 11/15/09 1,435 1,440,180
------------
8,158,025
------------
See Notes to Financial Statements.
24
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
PUERTO RICO -- 0.6%
Puerto Rico Municipal Finance Agency
General Obligation Bonds Series A
6.000% 08/01/16 $ 1,000 $ 1,057,550
------------
TEXAS -- 2.2%
Houston, Texas, Water & Sewer System
Revenue Bonds Series D
6.125% 12/01/25 2,000 2,016,320
West Central Texas Municipal Water
District Revenue Bonds, Water
Transmission Line Contract
6.750% 11/01/03 2,000 2,122,600
------------
4,138,920
------------
UTAH -- 2.7%
Utah State General Obligation Bonds
6.000% 07/01/01 5,000 5,081,150
------------
VIRGINIA -- 0.5%
Virginia State Transportation Board
Revenue Bonds (Route 28 Project)
6.000% 04/01/10 1,000 1,033,260
------------
WASHINGTON -- 1.7%
Snohomish County, Washington, School
District No. 201 General Obligation
Bonds
5.625% 12/01/07 2,000 2,078,960
Washington State General Obligation
Bonds Series A
6.000% 09/01/15 1,000 1,017,510
------------
3,096,470
------------
WISCONSIN -- 0.7%
Hartford, Wisconsin, Sewer System
Revenue Bonds
4.750% 04/01/03 1,225 1,223,983
------------
TOTAL MUNICIPAL BONDS
(Cost $183,110,756) 185,012,330
------------
SHARES VALUE(DAGGER)
------ -------------
TEMPORARY INVESTMENTS -- 1.8%
Federated Tax-Free Obligation Fund 1,011,032 $ 1,011,032
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 2,320,759 2,320,759
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,331,791) 3,331,791
------------
TOTAL INVESTMENTS -- 100.8%
(Cost $186,442,547) 188,344,121
------------
OTHER ASSETS AND LIABILITIES -- (0.8%)
Interest receivable and other assets 2,282,939
Receivable for securities sold 1,482,245
Receivable for capital stock sold 74,226
Payable for securities purchased (4,299,811)
Payable for capital stock redeemed (218,621)
Dividends payable (754,806)
Accrued expenses (42,896)
------------
(1,476,724)
------------
NET ASSETS -- 100.0%
Applicable to 17,962,788 Institutional Shares and
52,881 N Shares of beneficial interest outstanding,
$.001 par value (Note 7) $186,867,397
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL SHARE
($186,318,870/17,962,788) $10.37
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($548,527/52,881) $10.37
======
-----------------------
(DAGGER) See Note 2a to the Financial Statements.
See Notes to Financial Statements.
25
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS -- 97.7%
ALABAMA -- 0.5%
University of Alabama Hospital Revenue
Bonds Series A
5.625% 09/01/16 $ 500 $ 501,395
------------
ARIZONA -- 4.2%
Maricopa County, Arizona, Industrial
Development Authority Multi-Family
Housing Revenue Bonds (Advantage
Electric Projects) Series A
6.500% 07/01/16 1,900 2,060,151
Phoenix, Arizona, Civic Improvement Corp.
Wastewater Systems Revenue Bonds
6.250% 07/01/16 2,000 2,127,540
------------
4,187,691
------------
COLORADO -- 6.7%
Colorado Water Reserve Power
Development Authority Clean Water
Revenue Bonds Series A
6.250% 09/01/16 1,000 1,062,470
Pueblo, Colorado, Board of Waterworks
Water Improvement Revenue Bonds
Series A
6.000% 11/01/17 2,370 2,452,713
Pueblo County, Colorado, School District
No. 070 Pueblo Rural General
Obligation Bonds
6.000% 12/01/18 3,170 3,268,524
------------
6,783,707
------------
DELAWARE -- 1.3%
Delaware River & Bay Authority,
Delaware Revenue Bonds Series A
5.750% 01/01/29 1,250 1,252,075
------------
FLORIDA -- 1.1%
Miami-Dade County, Florida, Expressway
Authority Toll System Revenue Bonds
6.000% 07/01/14 1,000 1,055,160
------------
GEORGIA -- 4.1%
Atlanta, Georgia, Airport Revenue Bonds
Series A
5.500% 01/01/22 1,000 976,600
Fayette County, Georgia, Public Facilities
Authority Criminal Justice Center
Revenue Bonds
6.250% 06/01/18 1,000 1,058,530
Forsyth County, Georgia, School District
General Obligation Bonds
6.000% 02/01/14 1,000 1,060,810
6.000% 02/01/15 1,000 1,058,140
------------
4,154,080
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS -- 12.7%
Chicago, Illinois, General Obligation Bonds
(Neighborhoods Alive 21)
6.125% 01/01/22 $ 2,000 $ 2,058,800
Chicago, Illinois, General Obligation Bonds
Series A
6.000% 01/01/19 1,535 1,572,208
6.000% 01/01/20 1,000 1,021,780
Illinois State General Obligation Bonds
6.125% 01/01/16 5,000 5,224,750
Illinois State Sales Tax Revenue Bonds
Series V
6.375% 06/15/20 1,000 1,036,470
University of Illinois, University Auxiliary
Facilities Systems Revenue Bonds
Series A
6.000% 04/01/16 1,870 1,931,074
------------
12,845,082
------------
KENTUCKY -- 1.0%
Kentucky State Property & Buildings
Commission Revenue Bonds
(Project No. 65)
6.000% 02/01/14 1,000 1,047,380
------------
MASSACHUSETTS -- 13.2%
Brockton, Massachusetts, General
Obligation Bonds
5.750% 06/01/16 840 858,110
6.000% 06/01/19 1,000 1,028,220
Holden, Massachusetts, General
Obligation Bonds (Municipal Purposes
Loan)
6.000% 03/01/16 1,000 1,042,510
Massachusetts State Consumer Loan
General Obligation Bonds Series B
6.000% 06/01/14 3,000 3,143,520
Massachusetts State Development
Finance Agency Revenue Bonds
(Higher Education Smith College Issue)
5.750% 07/01/23 1,000 994,940
Massachusetts State Port Authority
Revenue Bonds Series C
6.125% 07/01/17 1,000 1,043,620
Springfield, Massachusetts, General
Obligation Bonds (Municipal Purposes
Loan)
6.250% 10/01/19 5,000 5,250,300
------------
13,361,220
------------
See Notes to Financial Statements.
26
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN -- 5.0%
Michigan State Hospital Finance Authority
Revenue Bonds (Chelsea Community
Hospital)
5.000% 05/15/12 $ 2,380 $ 2,026,998
Oakland County, Michigan, Economic
Development Corp. Limited Obligation
Revenue Bonds (Cranbrook Educational
Community) Series C
6.900% 11/01/14 2,725 2,988,889
------------
5,015,887
------------
MINNESOTA -- 3.7%
St. Cloud, Minnesota, Health Care Revenue
Bonds (St. Cloud Hospital Obligation
Group-A)
6.250% 05/01/19 3,530 3,679,531
------------
NEW YORK -- 5.7%
New York City, New York, General
Obligation Bonds Series A
6.500% 05/15/17 5,000 5,338,500
New York City, New York, General
Obligation Bonds Series B VR
4.750% 07/03/00 455 455,000
------------
5,793,500
------------
NORTH CAROLINA -- 5.5%
Charlotte, North Carolina, Storm Water
Fee Revenue Bonds
6.000% 06/01/20 3,175 3,322,130
Iredell County, North Carolina, Public
Facilities Corp. Installment Revenue
Bonds
6.000% 06/01/15 2,180 2,273,805
------------
5,595,935
------------
OHIO -- 13.2%
Akron, Ohio, General Obligation Bonds
6.500% 11/01/15 865 957,486
Avon Lake, Ohio, City School District
General Obligation Bonds
5.750% 12/01/14 1,000 1,037,220
Cuyahoga County, Ohio, Hospital Revenue
Improvement Bonds (Metrohealth
System Project) Series A
6.150% 02/15/29 5,000 4,773,550
Marysville, Ohio, General Obligation Bonds
6.000% 12/01/29 1,000 1,020,630
Ohio State University General Receipts
Revenue Bonds Series A
5.750% 12/01/19 550 551,793
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Plain, Ohio, Local School District
General Obligation Bonds
6.000% 12/01/25 $ 1,500 $ 1,528,950
University of Akron, Ohio General
Receipts Revenue Bonds
6.000% 01/01/15 2,235 2,337,631
6.000% 01/01/16 1,110 1,154,666
------------
13,361,926
------------
OREGON -- 1.0%
Linn County, Oregon, Community School
District General Obligation Bonds
6.125% 06/15/25 1,000 1,031,110
------------
PENNSYLVANIA -- 1.1%
Erie, Pennsylvania, School District
General Obligation Bonds
5.800% 09/01/29 1,150 1,148,390
------------
RHODE ISLAND -- 1.6%
Cranston, Rhode Island, General
Obligation Bonds
6.375% 11/15/14 500 540,740
6.375% 11/15/17 1,000 1,065,490
------------
1,606,230
------------
TENNESSEE -- 1.2%
White House Utility District, Tennessee,
Robertson & Sumner Counties Water
Revenue Bonds
6.000% 01/01/26 1,000 1,014,420
Williamson County, Tennessee, Rural
Schools General Obligation Bonds
5.875% 03/01/19 200 202,554
------------
1,216,974
------------
TEXAS -- 8.4%
Birdville, Texas, Independent School
District General Obligation Bonds
6.000% 02/15/21 2,135 2,170,676
Leander, Texas, Independent School
District General Obligation Bonds
0.000% 08/15/24 5,000 1,049,850
Lewisville, Texas, Independent School
District Refunding General Obligation
Bonds
5.750% 08/15/15 1,000 1,021,250
6.000% 08/15/17 3,130 3,224,902
Northside, Texas, Independent School
District General Obligation Bonds
6.000% 08/15/14 1,000 1,046,200
------------
8,512,878
------------
See Notes to Financial Statements.
27
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ------- -------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA -- 6.5%
Henrico County, Virginia, Economic
Development Authority Public Facilities
Lease Revenue Bonds (Regional Jail
Project)
6.000% 11/01/16 $ 1,000 $ 1,047,640
6.125% 11/01/17 2,405 2,532,249
Norfolk, Virginia, Water Revenue Bonds
5.875% 11/01/15 1,900 1,950,331
Virginia State Reservoir Authority
Clean Water Revenue Bonds (State
Revolving Fund)
6.000% 10/01/17 1,000 1,039,430
------------
6,569,650
------------
TOTAL MUNICIPAL BONDS
(Cost $96,811,622) 98,719,801
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 4.5%
Federated Tax-Free Obligation Fund 269,139 269,139
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 4,298,247 4,298,247
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $4,567,386) 4,567,386
------------
TOTAL INVESTMENTS -- 102.2%
(Cost $101,379,008) 103,287,187
------------
OTHER ASSETS AND LIABILITIES -- (2.2%)
Interest receivable and other assets 1,498,717
Receivable for securities sold 709,052
Receivable for capital stock sold 113,534
Payable for securities purchased (4,003,988)
Payable for capital stock redeemed (71,950)
Dividends payable (455,335)
Accrued expenses (31,766)
------------
(2,241,736)
------------
NET ASSETS -- 100.0%
Applicable to 10,154,386 Institutional Shares
and 87,258 N Shares of beneficial interest
outstanding, $.001 par value (Note 7) $101,045,451
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
SHARE ($100,184,517/10,154,386) $9.87
=====
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($860,934/87,258) $9.87
=====
---------------------
(DAGGER) See Note 2a to the Financial Statements.
VR -- Variable rate demand note; interest rate in effect on 06/30/00. Maturity
date is the later of the next interest rate change or exercise of the demand
feature.
See Notes to Financial Statements.
28
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 14.3%
BUSINESS SERVICES -- 2.2%
Oracle Corp.* 13,500 $ 1,134,000
-----------
CHEMICALS -- 2.0%
Corning, Inc. 3,865 1,043,067
-----------
ELECTRONICS -- 4.6%
EchoStar Communications Corp.* 19,500 645,937
Gilat Satellite Networks, Ltd.* 6,904 478,965
Rambus, Inc.* 8,000 824,000
RF Micro Devices, Inc.* 5,000 437,500
Sensormatic Electronics Corp.* 767 12,136
Sensormatic Electronics Corp.* 2,513 0
-----------
2,398,538
-----------
MISCELLANEOUS FINANCE -- 0.4%
Healthcare Financial Partners, Inc.,
Series 144A* (Unit consisting of
1 common share and 0.4 warrants) 10,905 218,100
-----------
OFFICE EQUIPMENT -- 4.4%
Comverse Technology, Inc.* 5,000 465,000
EMC Corp.* 16,000 1,231,000
Hewlett Packard Co. 5,000 624,375
-----------
2,320,375
-----------
TELEPHONES -- 0.7%
Leap Wireless International, Inc.* 757 35,532
Qualcomm, Inc.* 5,224 313,113
-----------
348,645
-----------
TOTAL COMMON STOCK
(Cost $5,006,313) 7,462,725
-----------
CONVERTIBLE PREFERRED STOCK -- 32.6%
AUTO RELATED -- 0.3%
Fleetwood Capital Trust, 6.000%, 02/15/28,
Series 144A 5,000 145,625
-----------
BANKS -- 0.7%
National Australia Bank, Ltd., 7.875%,
Series UNIT 13,500 382,219
-----------
BUSINESS SERVICES -- 0.2%
Central Parking Finance Trust, 7.875%,
Series 144A 10,000 135,000
-----------
CONSTRUCTION -- 1.1%
Kaufman & Broad Home Corp.,
8.250%, 08/16/01 32,200 209,300
Owens Corning Capital LLC,
6.500%, 05/10/25, Series 144A 14,700 350,962
-----------
560,262
-----------
CONTAINERS -- 1.4%
Owens - Illinois, Inc., 4.750% 15,000 333,750
Sealed Air Corp., $2.00, 04/01/18, Series A 7,500 379,687
-----------
713,437
-----------
SHARES VALUE(DAGGER)
-------- -------------
CONVERTIBLE PREFERRED STOCK (CONTINUED)
ELECTRICAL -- 0.5%
AES Trust VII, 6.000%, 05/15/08, Series 144A 5,000 $ 293,125
-----------
ELECTRIC & GAS -- 3.3%
Houston Industries, Inc., 7.000%, 07/01/00 10,500 1,318,934
TXU Corp. Income Prides, 9.250%, 08/16/01 10,000 388,750
-----------
1,707,684
-----------
ELECTRONICS -- 3.1%
Amdocs, Ltd., 6.750%, 09/11/02 10,000 631,250
Global Crossing, Ltd., 6.750%, 04/15/12 1,000 222,375
Loral Space & Communications, Ltd.,
6.000%, 02/15/07, Series 144A 6,000 133,500
Merrill Lynch & Co., Inc., 7.875%, 02/01/01,
Series "CBR" STRYPES 4,750 141,906
Network Plus Corp., 7.500%, 04/01/12 8,000 247,000
Sensormatic Electronics Corp., 6.500%,
Series 144A* 10,000 238,750
-----------
1,614,781
-----------
ENERGY SERVICES -- 2.0%
Calpine Capital Trust, 5.750%, 11/01/04 5,000 596,875
Hanover Compressor Co. Capital Trust,
7.250%, 12/15/29, Series 144A 4,000 443,500
-----------
1,040,375
-----------
FOOD & BEVERAGES -- 0.4%
Suiza Capital Trust II, 5.500%, 04/01/28,
Series 144A 5,000 189,375
-----------
FOREST PRODUCTS & PAPER -- 1.0%
Georgia-Pacific PEPS, 7.500%, 08/16/04 10,000 320,000
International Paper Capital Trust, 5.250% 5,000 188,125
-----------
508,125
-----------
HEALTH CARE SERVICES -- 1.4%
Hybridon, Inc., 6.500%, 04/01/04, Series A 2,925 51,187
Laboratory Corp. of America,
8.500%, 06/30/12, Series A 5,000 701,250
-----------
752,437
-----------
HOTELS & RESTAURANTS -- 1.4%
Felcor Lodging Trust, Inc., $1.95, Series A 15,000 255,000
Innkeepers USA Trust, 8.625%, Series A 30,000 495,000
-----------
750,000
-----------
INSURANCE -- 1.7%
Conseco Finance Trust IV, 7.000%, 02/16/01,
Series F 15,000 195,000
Metlife Capital Trust I, 8.000%, 05/15/03 10,000 691,875
-----------
886,875
-----------
MACHINERY & EQUIPMENT -- 1.4%
Calpine Capital Trust, 5.500%, 02/01/05,
Series 144A 10,000 722,500
-----------
See Notes to Financial Statements.
29
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
CONVERTIBLE PREFERRED STOCK (CONTINUED)
MEDIA -- 1.4%
Cox Communications, Inc., 7.000%, 08/16/02 5,500 $ 337,906
Merrill Lynch & Co., Inc., 6.250%, 07/01/01,
Series "I.G.L." STRYPES 16,800 255,150
NBC Internet, Inc. 7.250%, 02/15/03 6,000 139,500
-----------
732,556
-----------
MISCELLANEOUS FINANCE -- 2.9%
Crescent Real Estate Equities Co., 6.750%,
Series A 10,000 155,000
Equity Residential Properties Trust, 7.250%,
Series G 20,000 450,000
Reckson Associates Realty Corp., 7.625%,
Series A 13,000 288,437
Rouse Co., $3.00, Series B 15,000 536,250
U.S. Restaurant Properties, Inc., 7.720%,
Series A 10,000 99,375
-----------
1,529,062
-----------
OFFICE EQUIPMENT -- 0.7%
Morgan Stanley Dean Witter & Co., 05/30/01
"SUNW" Reset PERQS 40,000 350,000
-----------
OIL & GAS -- 2.5%
Enron Corp., 7.000%, 07/31/02 12,500 385,937
Weatherford International, Inc.,
5.000%, 11/01/27, Series 144A 20,000 920,000
-----------
1,305,937
-----------
RAILROADS -- 0.7%
Union Pacific Capital Trust, 6.250%, 04/01/28,
Series 144A 10,000 390,000
-----------
TELEPHONES -- 4.5%
RSL Communications, Ltd., 7.500%, 02/01/12,
Series 144A 10,000 332,500
Salomon Smith Barney Holdings, Inc.,
6.250%, 02/01/01, Series CSN 9,800 1,275,225
Titan Capital Trust, 5.750%, 02/15/05,
Series 144A 14,000 735,000
-----------
2,342,725
-----------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $18,401,757) 17,052,100
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
CONVERTIBLE CORPORATE BONDS -- 53.1%
BANKS -- 0.4%
Bankatlantic Bancorp, Inc.
5.625% 12/01/07 $ 293 192,647
-----------
BUSINESS SERVICES -- 5.7%
BEA Systems, Inc.
4.000% 12/15/06 350 545,563
Berkshire Hathaway, Inc.
1.000% 12/02/01 250 685,000
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Critical Path, Inc., Series 144A
5.750% 04/01/05 $ 200 $ 163,750
Veritas Software Corp.
1.856% 08/13/06 500 1,592,500
-----------
2,986,813
-----------
DRUGS -- 3.7%
Atrix Laboratories, Inc.
7.000% 12/01/04 500 396,875
Human Genome Sciences, Inc., Series 144A
5.000% 02/01/07 375 495,469
3.750% 03/15/07 500 413,750
IVAX Corp., Series 144A
5.500% 05/15/07 500 646,875
-----------
1,952,969
-----------
ENERGY SERVICES -- 0.2%
Transocean Sedco Forex, Inc.
0.000% 05/24/20 200 120,000
-----------
ELECTRICAL -- 0.5%
Brightpoint Lyons, Inc., Series 144A
0.000% 03/11/18 750 255,937
-----------
ELECTRONICS -- 22.6%
ACT Manufacturing, Inc., Series 144A
7.000% 04/15/07 250 312,500
Activision, Inc.
6.750% 01/01/05 500 325,000
Atmel Corp., Series 144A
0.000% 04/15/18 1,000 1,050,630
Candescent Technologies Corp., Series 144A
7.000% 05/01/03 300 229,500
Conexant Systems, Inc., Series 144A
4.000% 02/01/07 500 393,125
Cypress Semiconductor Corp.
4.000% 02/01/05 750 875,625
Digital Island, Inc.
6.000% 02/15/05 250 178,438
Exodus Communications, Inc.
4.750% 07/15/08 500 726,875
Juniper Networks, Inc.
4.750% 03/15/07 1,350 1,500,188
Kent Electronics Corp.
4.500% 09/01/04 475 424,531
LSI Logic Corp.
4.000% 02/15/05 750 797,813
Mascotech, Inc.
4.500% 12/15/03 500 375,625
Mercury Interactive Corp., Series 144A
4.750% 07/01/07 500 540,625
Quantum Corp.
7.000% 08/01/04 225 178,031
Rational Software Corp., Series 144A
5.000% 02/01/07 500 743,125
Redback Networks, Inc., Series 144A
5.000% 04/01/07 500 573,125
See Notes to Financial Statements.
30
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
ELECTRONICS (CONTINUED)
Siebel Systems, Inc.
5.500% 09/15/06 $ 300 $ 1,080,375
Solectron Corp., Series 144A
0.000% 01/27/19 1,650 1,124,063
Technomatix Technologies, Ltd., Series 144A
5.250% 08/15/04 630 413,438
-----------
11,842,632
-----------
HEALTH CARE SERVICES -- 3.1%
Alza Corp.
5.000% 05/01/06 490 773,588
COR Therapeutics, Inc., Series 144A
5.000% 03/01/07 300 400,875
NCS Healthcare, Inc., Series 144A
5.750% 08/15/04 250 83,125
Wellpoint Health Networks, Inc.
0.000% 07/02/19 500 348,750
-----------
1,606,338
-----------
HOTELS & RESTAURANTS -- 0.1%
Capstar Hotel Corp.
4.750% 10/15/04 100 77,875
-----------
INSURANCE -- 3.5%
American International Group, Inc.
2.250% 07/30/04 975 1,634,344
Loews Corp.
3.125% 09/15/07 250 209,375
-----------
1,843,719
-----------
MACHINERY & EQUIPMENT -- 0.4%
Advanced Energy Industries, Inc.
5.250% 11/15/06 50 67,188
Friede Goldman Halter, Inc., Series 144A
4.500% 09/15/04 200 121,250
-----------
188,438
-----------
MEDIA -- 1.8%
Omnicom Group, Inc.
4.250% 01/03/07 330 926,888
-----------
MISCELLANEOUS FINANCE -- 1.4%
Goldman Sachs Group, Inc.
2.000% 07/01/06 500 456,250
0.250% 03/22/07 250 277,188
-----------
733,438
-----------
OFFICE EQUIPMENT -- 0.5%
Citrix Systems, Inc., Series 144A
0.000% 03/22/19 200 72,500
Efficient Networks, Inc., Series 144A
5.000% 03/15/05 250 181,563
-----------
254,063
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
OIL & GAS -- 2.0%
Devon Energy Corp.
4.900% 08/15/08 $ 500 $ 483,750
Kerr-McGee Corp.
5.250% 02/15/10 500 577,500
-----------
1,061,250
-----------
POLLUTION CONTROL -- 0.9%
Waste Management, Inc.
4.000% 02/01/02 500 466,250
-----------
TELEPHONES -- 6.3%
Allied Riser Communications Corp.,
Series 144A
7.500% 06/15/07 300 305,250
Clear Channel Communications, Inc.
2.625% 04/01/03 500 646,875
Level 3 Communications, Inc.
6.000% 09/15/09 300 446,625
6.000% 03/15/10 500 452,500
Nextel Communications, Inc., Series 144A
5.250% 01/15/10 500 523,125
Tel-Save Holdings, Inc., Series 144A
5.000% 12/15/04 500 333,750
U.S. Cellular Corp.
0.000% 06/13/15 1,000 597,500
-----------
3,305,625
-----------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $23,275,610) 27,814,882
-----------
SHARES
--------
RIGHTS & WARRANTS -- 0.0%
Hybridon, Inc. Class A 17,206 3,011
Intermedia Communications, Inc.,
Series 144A* 811 0
-----------
TOTAL RIGHTS & WARRANTS
(Cost $0) 3,011
-----------
TEMPORARY INVESTMENTS -- 0.0%
Dreyfus Cash Management Plus #719 95 95
Goldman Sachs Financial Square
Money Market Portfolio 47 47
J.P. Morgan Institutional Prime
Money Market Portfolio 34 34
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $176) 176
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $46,683,856) $52,332,894
===========
--------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
PEPS -- Preferred Equity Participation Stock.
PERQS -- Perfomance Equity-Linked Redemption Quarterly-pay Securities.
STRYPES -- Structured Yield Product Exchangeable for Stock.
See Notes to Financial Statements.
31
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $46,683,856) ..................... $52,332,894
Collateral for securities loaned ............................ 3,615,260
Receivable for securities sold .............................. 851,535
Dividends receivable ........................................ 59,517
Interest receivable ......................................... 284,231
Receivable for capital stock sold ........................... 2,052
Other assets ................................................ 23,563
-----------
Total assets ......................................... 57,169,052
-----------
LIABILITIES
Payable upon return of securities loaned .................... 3,615,260
Payable for securities purchased ............................ 500,000
Payable for capital stock redeemed .......................... 86,888
Accrued expenses ............................................ 45,298
-----------
Total liabilities .................................... 4,247,446
-----------
NET ASSETS
Applicable to 1,728,714 Institutional Shares, 11,524
N Shares and 648 A Shares of beneficial interest
outstanding, $.001 par value (Note 7) ........................ $52,921,606
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($52,551,698/1,728,714) ...................................... $30.40
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($350,222/11,524) ............................................ $30.39
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($19,686/648) ................................................ $30.38
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($30.38/0.955) (Note 5) ...................................... $31.81
======
See Notes to Financial Statements.
32
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 99.1%
AEROSPACE -- 5.1%
B.F. Goodrich Co. 118,500 $ 4,036,406
Litton Industries, Inc.* 235,575 9,894,150
Lockheed Martin Corp. 369,400 9,165,737
United Technologies Corp. 39,400 2,319,675
------------
25,415,968
------------
AIR TRANSPORT -- 0.9%
Delta Air Lines, Inc. 33,700 1,703,956
UAL Corp. 52,000 3,025,750
------------
4,729,706
------------
ALCOHOLIC BEVERAGES & TOBACCO-- 0.8%
Anheuser-Busch Cos., Inc. 56,000 4,182,500
------------
AUTO RELATED -- 0.1%
Visteon Corp.* 23,476 284,650
------------
AUTOS -- 2.8%
Ford Motor Co. 179,300 7,709,900
General Motors Corp. 109,400 6,352,037
------------
14,061,937
------------
BANKS -- 5.8%
Bank of New York Co., Inc. 200,300 9,313,950
Citigroup, Inc. 112,000 6,748,000
Southtrust Corp. 167,150 3,781,769
Wells Fargo Co. 227,900 8,831,125
------------
28,674,844
------------
BUSINESS SERVICES -- 9.0%
Automatic Data Processing, Inc. 223,500 11,971,219
DeVry, Inc.* 99,800 2,638,462
Electronic Data Systems Corp. 175,700 7,247,625
Fiserv, Inc.* 108,600 4,696,950
Oracle Corp.* 91,800 7,711,200
Reynolds & Reynolds Co. Class A 201,200 3,671,900
Viad Corp. 243,000 6,621,750
------------
44,559,106
------------
CASINOS -- 1.4%
Mandalay Resort Group* 354,500 7,090,000
------------
CHEMICALS -- 1.6%
F.M.C. Corp.* 88,200 5,115,600
W.R. Grace & Co.* 252,600 3,062,775
------------
8,178,375
------------
CONSTRUCTION -- 1.5%
Centex Corp. 156,700 3,682,450
Sherwin Williams Co. 175,100 3,709,931
------------
7,392,381
------------
CONTAINERS -- 0.7%
Crown Cork & Seal Co., Inc. 94,300 1,414,500
Owens-Illinois, Inc.* 156,700 1,831,431
------------
3,245,931
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
DRUGS -- 4.8%
Bristol-Myers Squibb Co. 19,400 $ 1,130,050
Merck & Co., Inc. 129,800 9,945,925
Pfizer, Inc. 267,050 12,818,400
------------
23,894,375
------------
ELECTRIC & GAS -- 3.7%
Energy East Corp. 343,500 6,547,969
Reliant Energy, Inc. 399,900 11,822,044
------------
18,370,013
------------
ELECTRONICS -- 6.9%
Agilent Technologies, Inc.* 13,001 958,824
Arrow Electronics, Inc.* 69,300 2,148,300
Intel Corp. 134,900 18,026,012
Tellabs, Inc.* 43,400 2,970,187
Texas Instruments, Inc. 59,600 4,093,775
Vishay Intertechnology, Inc.* 165,150 6,265,378
------------
34,462,476
------------
FOOD & BEVERAGES -- 1.4%
Smithfield Foods, Inc.* 242,200 6,796,737
------------
FOREST PRODUCTS & PAPER -- 1.4%
Boise Cascade Corp. 104,600 2,706,525
Georgia Pacific Corp. 161,500 4,239,375
------------
6,945,900
------------
HEALTH CARE SERVICES -- 3.2%
Beckman Coulter, Inc. 58,400 3,409,100
St. Jude Medical, Inc.* 129,500 5,940,812
Wellpoint Health Networks, Inc.* 90,700 6,570,081
------------
15,919,993
------------
HOTELS & RESTAURANTS -- 3.1%
Brinker International, Inc.* 89,200 2,609,100
Darden Restaurants, Inc. 413,525 6,719,781
Outback Steakhouse, Inc.* 213,200 6,236,100
------------
15,564,981
------------
INSURANCE -- 2.0%
AXA Financial, Inc. 293,900 9,992,600
------------
MACHINERY & EQUIPMENT -- 0.8%
Applied Materials, Inc.* 45,700 4,141,562
------------
MEDIA -- 0.6%
Walt Disney Co. 76,100 2,953,631
------------
MISCELLANEOUS FINANCE -- 6.9%
American Express Co. 91,100 4,748,588
Lehman Brothers Holdings, Inc. 134,000 12,671,375
Morgan Stanley Dean Witter & Co. 117,700 9,798,525
PaineWebber Group, Inc. 156,600 7,125,300
------------
34,343,788
------------
See Notes to Financial Statements.
33
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
OFFICE EQUIPMENT -- 8.1%
Adobe Systems, Inc. 51,600 $ 6,701,550
Apple Computer, Inc.* 70,400 3,682,800
Compaq Computer Corp. 87,800 2,244,388
Dell Computer Corp.* 110,300 5,439,169
Hewlett Packard Co. 47,400 5,919,075
International Business Machines Corp. 147,100 16,116,644
------------
40,103,626
------------
OIL & GAS -- 9.8%
Coastal Corp. 324,200 19,735,675
Conoco, Inc. Class B 572,300 14,057,119
Texaco, Inc. 59,300 3,157,725
USX-Marathon Group, Inc. 472,200 11,834,513
------------
48,785,032
------------
POLLUTION CONTROL -- 0.8%
Republic Services, Inc.* 260,100 4,161,600
------------
RAILROADS -- 0.5%
Canadian Pacific, Ltd. 99,200 2,597,800
------------
RETAIL -- 5.1%
BJ's Wholesale Club, Inc.* 167,500 5,527,500
Federated Department Stores, Inc.* 89,100 3,007,125
Intimate Brands, Inc. Class A 315,500 6,231,125
Limited, Inc. 216,700 4,686,138
Ross Stores, Inc. 183,400 3,117,800
Target Corp. 44,600 2,586,800
------------
25,156,488
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
RETAIL - FOOD -- 2.2%
Supervalu, Inc. 272,100 $ 5,186,906
Sysco Corp. 132,300 5,573,138
------------
10,760,044
------------
TELEPHONES -- 7.6%
ADC Telecommunications, Inc.* 197,800 16,578,113
BellSouth Corp. 172,200 7,340,025
GTE Corp. 78,700 4,899,075
Sprint Corp. (FON Group) 66,000 3,366,000
Worldcom, Inc.* 127,200 5,835,300
------------
38,018,513
------------
TRUCKING -- 0.5%
CNF Transportation, Inc. 99,900 2,272,725
------------
TOTAL COMMON STOCK
(Cost $434,219,541) 493,057,282
------------
TEMPORARY INVESTMENTS -- 0.9%
Dreyfus Cash Management Plus #719 1,267,618 1,267,618
Goldman Sachs Financial Square
Money Market Portfolio 1,220,237 1,220,237
J.P. Morgan Institutional Prime
Money Market Portfolio 2,060,831 2,060,831
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $4,548,686) 4,548,686
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $438,768,227) $497,605,968
============
-------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
34
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $438,768,227) ................... $497,605,968
Collateral for securities loaned ........................... 26,391,300
Dividends receivable ....................................... 291,875
Interest receivable ........................................ 29,584
Receivable for capital stock sold .......................... 222,976
Other assets ............................................... 26,709
------------
Total assets ........................................ 524,568,412
------------
LIABILITIES
Payable upon return of securities loaned ................... 26,391,300
Payable for capital stock redeemed ......................... 1,719,471
Accrued expenses ........................................... 435,763
------------
Total liabilities ................................... 28,546,534
------------
NET ASSETS
Applicable to 32,888,678 Institutional Shares, 1,233,274
N Shares and 12,976 A Shares of beneficial interest
outstanding, $.001 par value (Note 7) ....................... $496,021,878
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($477,911,263/32,888,678) ................................... $14.53
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($17,922,051/1,233,274) ..................................... $14.53
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($188,564/12,976) ........................................... $14.53
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($14.53/0.945) (Note 5) ..................................... $15.38
======
See Notes to Financial Statements.
35
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 96.6%
AEROSPACE -- 5.1%
B.F. Goodrich Co. 39,200 $ 1,335,250
Northrop Grumman Holdings Corp. 12,600 834,750
Rockwell International Corp. 18,800 592,200
United Technologies Corp. 16,400 965,550
-----------
3,727,750
-----------
AIR TRANSPORT -- 1.3%
AMR Corp.* 17,900 473,231
UAL Corp. 8,500 494,594
-----------
967,825
-----------
ALCOHOLIC BEVERAGES & TOBACCO-- 1.2%
Anheuser-Busch Cos., Inc. 11,700 873,844
-----------
AUTO RELATED -- 0.4%
Goodyear Tire & Rubber Co. 13,000 260,000
Visteon Corp.* 4,451 53,977
-----------
313,977
-----------
AUTOS -- 2.0%
Ford Motor Co. 34,000 1,462,000
-----------
BANKS -- 8.4%
Bank One Corp. 17,267 458,655
Chase Manhattan Corp. 45,300 2,086,631
Citigroup, Inc. 18,500 1,114,625
FleetBoston Financial Corp. 32,400 1,101,600
Keycorp 20,200 356,025
Mellon Financial Corp. 29,800 1,085,837
-----------
6,203,373
-----------
BUSINESS SERVICES -- 3.2%
Computer Associates International, Inc. 12,500 639,844
Oracle Corp.* 20,000 1,680,000
-----------
2,319,844
-----------
CHEMICALS -- 2.2%
Dow Chemical Co. 10,500 316,969
Minnesota Mining & Manufacturing Co. 15,800 1,303,500
-----------
1,620,469
-----------
CONSTRUCTION -- 0.9%
Armstrong Holdings, Inc. 24,800 379,750
USG Corp. 9,200 279,450
-----------
659,200
-----------
DRUGS -- 7.4%
Amgen, Inc.* 29,400 2,065,350
Bristol-Myers Squibb Co. 38,500 2,242,625
Pfizer, Inc. 22,825 1,095,600
-----------
5,403,575
-----------
ELECTRIC & GAS -- 5.0%
DTE Energy Co. 15,000 458,437
Edison International 33,500 686,750
Energy East Corp. 21,900 417,469
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
ELECTRIC & GAS (CONTINUED)
Entergy Corp. 18,100 $ 492,094
GPU, Inc. 18,700 506,069
New Century Energies, Inc. 7,900 242,431
TXU Corp. 15,000 442,500
Unicom Corp. 11,900 460,381
-----------
3,706,131
-----------
ELECTRICAL -- 1.5%
Cooper Industries, Inc. 17,000 553,562
General Electric Co. 11,400 581,400
-----------
1,134,962
-----------
ELECTRONICS -- 2.9%
Advanced Micro Devices, Inc.* 4,200 324,450
Arrow Electronics, Inc.* 38,000 1,178,000
Intel Corp. 4,100 547,862
Lam Research Corp.* 2,600 97,500
-----------
2,147,812
-----------
FOREST PRODUCTS & PAPER -- 2.7%
Georgia Pacific Corp. 30,600 803,250
Georgia Pacific Corp. (Timber Group)* 16,500 356,812
Weyerhaeuser Co. 18,800 808,400
-----------
1,968,462
-----------
HEALTH CARE SERVICES -- 5.0%
Cigna Corp. 26,300 2,459,050
Medtronic, Inc. 24,264 1,208,650
-----------
3,667,700
-----------
INSURANCE -- 1.4%
Lincoln National Corp. 7,000 252,875
Providian Financial Corp. 8,250 742,500
-----------
995,375
-----------
MACHINERY & EQUIPMENT -- 1.6%
Applied Materials, Inc.* 3,800 344,375
Deere & Co. 8,200 303,400
Tyco International, Ltd. 10,800 511,650
-----------
1,159,425
-----------
METALS -- 1.3%
Alcoa, Inc. 14,200 411,800
Phelps Dodge Corp. 6,100 226,844
USX-U.S. Steel Group, Inc. 18,100 335,981
-----------
974,625
-----------
MISCELLANEOUS FINANCE -- 2.7%
Capital One Financial Corp. 8,900 397,162
Lehman Brothers Holdings, Inc. 7,100 671,394
Merrill Lynch & Co., Inc. 8,200 943,000
-----------
2,011,556
-----------
See Notes to Financial Statements.
36
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
OFFICE EQUIPMENT -- 16.4%
Adobe Systems, Inc. 10,400 $ 1,350,700
Cisco Systems, Inc.* 21,400 1,360,237
Compaq Computer Corp. 12,400 316,975
Dell Computer Corp.* 34,600 1,706,213
EMC Corp.* 20,000 1,538,750
International Business Machines Corp. 12,600 1,380,488
Lexmark International Group, Inc. Class A* 16,400 1,102,900
Microsoft Corp.* 16,000 1,279,000
Sun Microsystems, Inc.* 21,700 1,973,344
-----------
12,008,607
-----------
OIL & GAS -- 11.2%
BP Amoco P.L.C. ADR 12,464 704,995
Exxon Mobil Corp. 29,900 2,349,019
Kerr-McGee Corp. 20,300 1,196,431
Phillips Petroleum Co. 18,000 912,375
Royal Dutch Petroleum Co. 28,700 1,766,844
USX-Marathon Group, Inc. 51,500 1,290,719
-----------
8,220,383
-----------
RETAIL -- 4.8%
BJ's Wholesale Club, Inc.* 21,900 722,700
Circuit City Stores, Inc. 12,000 398,250
Gap, Inc. 26,025 813,281
Target Corp. 26,900 1,560,200
-----------
3,494,431
-----------
TELEPHONES -- 7.0%
AT&T Corp. 13,700 433,263
Bell Atlantic Corp. 29,596 1,503,847
GTE Corp. 11,600 722,100
SBC Communications, Inc. 16,318 705,754
US West, Inc. 20,800 1,783,600
-----------
5,148,564
-----------
THRIFT INSTITUTIONS -- 1.0%
Washington Mutual, Inc. 26,250 757,969
-----------
TOTAL COMMON STOCK
(Cost $51,274,922) 70,947,859
-----------
SHARES VALUE(DAGGER)
-------- -------------
TEMPORARY INVESTMENTS -- 3.4%
Dreyfus Cash Management Plus #719 953,314 $ 953,314
Goldman Sachs Financial Square
Money Market Portfolio 782,886 782,886
J.P. Morgan Institutional Prime
Money Market Portfolio 779,822 779,822
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $2,516,022) 2,516,022
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $53,790,944) $73,463,881
===========
------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
37
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $53,790,944) ..................... $73,463,881
Collateral for securities loaned ............................ 6,920,123
Dividends receivable ........................................ 96,585
Interest receivable ......................................... 17,285
Receivable for capital stock sold ........................... 93,171
Other assets ................................................ 9,861
-----------
Total assets ......................................... 80,600,906
-----------
LIABILITIES
Payable upon return of securities loaned .................... 6,920,123
Payable for capital stock redeemed .......................... 606,931
Accrued expenses ............................................ 58,879
-----------
Total liabilities .................................... 7,585,933
-----------
NET ASSETS
Applicable to 3,503,827 Institutional Shares, 294,594
N Shares and 31,185 A Shares of beneficial interest
outstanding, $.001 par value (Note 7) ........................ $73,014,973
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($66,805,793/3,503,827) ...................................... $19.07
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($5,614,819/294,594) ......................................... $19.06
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($594,361/31,185) ............................................ $19.06
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($19.06/0.945) (Note 5) ...................................... $20.17
======
See Notes to Financial Statements.
38
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 98.4%
AEROSPACE -- 2.5%
Honeywell International, Inc. 28,860 $ 972,221
Textron, Inc. 16,830 914,079
United Technologies Corp. 49,950 2,940,806
------------
4,827,106
------------
ALCOHOLIC BEVERAGES & TOBACCO-- 1.1%
Anheuser-Busch Cos., Inc. 29,160 2,177,887
------------
APPAREL, TEXTILES -- 0.9%
Jones Apparel Group, Inc.* 73,300 1,722,550
------------
BANKS -- 2.4%
Chase Manhattan Corp. 11,370 523,731
Citigroup, Inc. 66,848 4,027,592
------------
4,551,323
------------
BUSINESS SERVICES -- 9.0%
Adaptec, Inc.* 70,740 1,609,335
Automatic Data Processing, Inc. 27,400 1,467,613
Computer Associates International, Inc. 59,673 3,054,512
Computer Sciences Corp.* 18,870 1,409,353
Manpower, Inc. 49,030 1,568,960
Oracle Corp.* 99,160 8,329,440
------------
17,439,213
------------
COSMETICS & SOAP -- 1.8%
Colgate-Palmolive Co. 27,860 1,668,117
Procter & Gamble Co. 30,760 1,761,010
------------
3,429,127
------------
DRUGS -- 11.9%
Abbott Laboratories, Inc. 36,714 1,636,068
American Home Products Corp. 21,070 1,237,862
Amgen, Inc.* 51,900 3,645,975
Bristol-Myers Squibb Co. 53,620 3,123,365
Cardinal Health, Inc. 41,340 3,059,160
Genzyme Corp.* 16,800 999,600
Merck & Co., Inc. 21,395 1,639,392
Pfizer, Inc. 60,650 2,911,200
Schering Plough Corp. 94,260 4,760,130
------------
23,012,752
------------
ELECTRICAL -- 2.2%
General Electric Co. 85,280 4,349,280
------------
ELECTRONICS -- 10.7%
Agilent Technologies, Inc.* 9,057 667,953
America Online, Inc.* 36,950 1,949,112
American Power Conversion Corp.* 37,150 1,513,863
Gateway, Inc.* 29,170 1,655,397
Intel Corp. 57,710 7,711,499
Lucent Technologies, Inc. 61,756 3,659,043
Nortel Networks Corp. 32,360 2,208,570
SCI Systems, Inc.* 32,970 1,296,133
------------
20,661,570
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
FOOD & BEVERAGES -- 2.6%
Quaker Oats Co. 48,030 $ 3,608,254
Sara Lee Corp. 78,800 1,521,825
------------
5,130,079
------------
HEALTH CARE SERVICES -- 1.0%
Beckman Coulter, Inc. 17,780 1,037,907
Biogen, Inc.* 13,470 867,973
------------
1,905,880
------------
HOTELS & RESTAURANTS -- 0.7%
Tricon Global Restaurants, Inc.* 47,330 1,337,072
------------
INSURANCE -- 3.5%
American International Group, Inc. 17,232 2,024,760
AXA Financial, Inc. 87,880 2,987,920
MGIC Investment Corp. 40,690 1,851,395
------------
6,864,075
------------
MACHINERY & EQUIPMENT -- 4.4%
Applied Materials, Inc.* 52,900 4,794,062
Tyco International, Ltd. 79,340 3,758,732
------------
8,552,794
------------
MEDIA -- 0.6%
Dow Jones & Co., Inc. 15,780 1,155,885
------------
MISCELLANEOUS FINANCE -- 3.3%
Federal National Mortgage Association 17,770 927,372
Lehman Brothers Holdings, Inc. 11,590 1,095,979
Morgan Stanley Dean Witter & Co. 52,100 4,337,325
------------
6,360,676
------------
OFFICE EQUIPMENT -- 21.1%
Adobe Systems, Inc. 22,260 2,891,017
BEA Systems, Inc.* 19,200 948,000
BMC Software, Inc.* 34,400 1,253,450
Cisco Systems, Inc.* 124,900 7,938,956
Compaq Computer Corp. 57,900 1,480,069
Compuware Corp.* 66,360 684,338
Dell Computer Corp.* 41,240 2,033,648
Hewlett Packard Co. 24,560 3,066,930
International Business Machines Corp. 25,870 2,834,382
Lexmark International Group, Inc. Class A* 46,230 3,108,968
Microsoft Corp.* 76,100 6,083,244
Network Appliance, Inc.* 25,600 2,059,200
Sun Microsystems, Inc.* 71,800 6,529,313
------------
40,911,515
------------
OIL & GAS -- 7.6%
Apache Corp. 50,770 2,985,911
Coastal Corp. 75,360 4,587,540
Kerr-McGee Corp. 22,960 1,353,205
Ultramar Diamond Shamrock Corp. 82,530 2,047,776
USX-Marathon Group, Inc. 147,440 3,695,215
------------
14,669,647
------------
See Notes to Financial Statements.
39
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
RETAIL -- 4.2%
Federated Department Stores, Inc.* 67,100 $ 2,264,625
Gap, Inc. 32,760 1,023,750
Limited, Inc. 103,800 2,244,675
Target Corp. 43,640 2,531,120
------------
8,064,170
------------
RETAIL - FOOD -- 1.1%
Safeway, Inc.* 45,180 2,038,748
------------
TELEPHONES -- 5.8%
ADC Telecommunications, Inc.* 21,000 1,760,063
AT&T Corp. 23,400 740,025
Broadwing, Inc.* 16,610 430,822
GTE Corp. 37,900 2,359,275
Qualcomm, Inc.* 15,480 927,833
SBC Communications, Inc. 117,888 5,098,656
------------
11,316,674
------------
TOTAL COMMON STOCK
(Cost $118,430,350) 190,478,023
------------
TEMPORARY INVESTMENTS -- 1.6%
Dreyfus Cash Management Plus #719 1,022,722 1,022,722
Goldman Sachs Financial Square
Money Market Portfolio 1,118,143 1,118,143
J.P. Morgan Institutional Prime
Money Market Portfolio 970,052 970,052
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,110,917 3,110,917
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $121,541,267) $193,588,940
============
------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
40
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $121,541,267) ................... $193,588,940
Collateral for securities loaned ........................... 10,488,091
Dividends receivable ....................................... 96,270
Interest receivable ........................................ 23,941
Receivable for capital stock sold .......................... 1,898,120
Other assets ............................................... 20,307
------------
Total assets ........................................ 206,115,669
------------
LIABILITIES
Payable upon return of securities loaned ................... 10,488,091
Payable for capital stock redeemed ......................... 1,802,100
Accrued expenses ........................................... 176,596
------------
Total liabilities ................................... 12,466,787
------------
NET ASSETS
Applicable to 6,320,734 Institutional Shares, 297,487
N Shares and 33,313 A Shares of beneficial interest
outstanding, $.001 par value (Note 7) ....................... $193,648,882
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($184,083,156/6,320,734) .................................... $29.12
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($8,602,705/297,487) ........................................ $28.92
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($963,021/33,313) ........................................... $28.91
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($28.91/0.945) (Note 5) ..................................... $30.59
======
See Notes to Financial Statements.
41
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 98.0%
AIR TRANSPORT -- 1.8%
EGL, Inc.* 169,900 $ 5,203,187
Expeditors International of
Washington, Inc. 71,600 3,401,000
------------
8,604,187
------------
APPAREL, TEXTILES -- 1.7%
Fossil, Inc.* 64,675 1,192,445
Quiksilver, Inc.* 155,150 2,414,522
Timberland Co. Class A* 67,000 4,744,437
------------
8,351,404
------------
AUTO RELATED -- 0.9%
Avis Group Holdings, Inc.* 187,100 3,508,125
Winnebago Industries, Inc. 85,700 1,119,456
------------
4,627,581
------------
AUTOS -- 0.2%
Navistar International Corp.* 33,600 1,043,700
------------
BANKS -- 6.3%
Capitol Federal Financial 189,900 2,100,769
Centura Banks, Inc. 20,500 695,719
Commerce Bancshares, Inc. 80,245 2,387,289
Community First Bankshares, Inc. 210,500 3,433,781
Dain Rauscher Corp. 52,800 3,484,800
East West Bancorp, Inc. 85,700 1,210,512
North Fork Bancorp, Inc. 92,100 1,393,012
Old Kent Financial Corp. 33,481 895,626
Silicon Valley Bancshares* 335,400 14,296,425
Westamerica Bancorp 34,100 890,862
------------
30,788,795
------------
BUSINESS SERVICES -- 8.2%
ADVO, Inc.* 83,800 3,519,600
AremisSoft Corp.* 53,300 1,655,631
Aware, Inc.* 179,600 9,170,825
C.H. Robinson Worldwide, Inc. 41,000 2,026,937
FactSet Research Systems, Inc. 80,100 2,302,875
National Computer Systems, Inc. 226,600 11,131,725
SEI Investments Co. 81,300 3,297,731
The Corporate Executive Board Co.* 94,400 5,652,200
Unify Corp.* 110,000 941,875
------------
39,699,399
------------
CASINOS -- 1.6%
Argosy Gaming Co.* 182,300 2,620,562
Isle of Capri Casinos, Inc.* 110,600 1,500,012
Station Casinos, Inc.* 136,900 3,422,500
------------
7,543,074
------------
CHEMICALS -- 1.2%
Georgia Gulf Corp. 181,600 3,779,550
Spartech Corp. 79,700 2,151,900
------------
5,931,450
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
CONSTRUCTION -- 3.7%
Dycom Industries, Inc.* 227,625 $ 10,470,750
Elcor Corp. 97,950 2,252,850
Florida Rock Industries, Inc. 25,600 912,000
Insituform Technologies, Inc. Class A* 73,000 1,993,812
Toll Brothers, Inc.* 106,000 2,173,000
------------
17,802,412
------------
DRUGS -- 6.8%
Jones Pharma, Inc. 339,350 13,531,581
King Pharmaceuticals, Inc.* 94,500 4,146,188
Priority Healthcare Corp. Class B* 209,300 15,488,200
------------
33,165,969
------------
ELECTRIC & GAS -- 2.1%
Calpine Corp.* 141,600 9,310,200
Independent Energy Holdings P.L.C. ADR* 93,800 779,713
------------
10,089,913
------------
ELECTRICAL -- 1.1%
CommScope, Inc.* 131,100 5,375,100
------------
ELECTRONICS -- 21.3%
Actel Corp.* 41,300 1,881,731
Advanced Digital Information Corp.* 75,200 1,193,800
Amkor Technology, Inc.* 114,800 4,046,700
Amphenol Corp. Class A* 150,400 9,954,600
August Technology Corp.* 142,000 2,325,250
C&D Technologies, Inc. 106,800 6,034,200
Cognex Corp.* 35,800 1,850,413
CTS Corp. 71,200 3,204,000
DSP Group, Inc.* 89,200 5,073,250
FEI Co.* 118,100 3,602,050
General Cable Corp. 339,900 2,761,687
Genesis Microchip, Inc.* 126,600 2,262,975
Genus, Inc.* 171,600 1,415,700
Jabil Circuit, Inc.* 61,000 3,027,125
Micrel, Inc.* 162,200 7,045,563
Microsemi Corp.* 152,300 5,159,163
Nanometrics, Inc.* 42,900 1,766,944
Nu Horizons Electronics Corp.* 158,400 4,217,400
QuickLogic Corp.* 125,800 2,854,088
Radiant Systems, Inc.* 110,812 2,638,711
RF Micro Devices, Inc.* 55,200 4,830,000
Sanmina Corp.* 140,840 12,033,017
Sawtek, Inc.* 52,000 2,993,250
Semtech Corp.* 52,900 4,020,400
Universal Electronics, Inc.* 59,400 1,455,300
Vitesse Semiconductor Corp.* 78,500 5,774,656
------------
103,421,973
------------
ENERGY SERVICES -- 0.5%
Superior Energy Services, Inc.* 214,200 2,222,325
------------
See Notes to Financial Statements.
42
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
HEALTH CARE SERVICES -- 6.0%
Accredo Health, Inc.* 74,100 $ 2,556,450
Advance Paradigm, Inc.* 127,500 2,557,969
Apria Healthcare Group, Inc.* 256,800 3,145,800
Biosite Diagnostics, Inc.* 93,500 4,499,688
Dendrite International, Inc.* 106,500 3,547,781
Hooper Holmes, Inc. 222,000 1,776,000
LJL Biosystems, Inc.* 88,900 1,716,881
Noven Pharmaceuticals, Inc.* 104,900 3,153,556
Patterson Dental Co.* 40,500 2,062,969
Universal Health Services, Inc. Class B* 61,400 4,021,700
------------
29,038,794
------------
HOTELS & RESTAURANTS -- 4.7%
Brinker International, Inc.* 328,700 9,614,475
Extended Stay America, Inc.* 264,700 2,448,475
Jack in the Box, Inc.* 157,900 3,908,025
Ruby Tuesday, Inc. 230,000 2,889,375
Sonic Corp.* 135,000 3,965,625
------------
22,825,975
------------
HOUSEHOLD GOODS -- 0.7%
Ethan Allen Interiors, Inc. 61,500 1,476,000
La-Z-Boy, Inc. 145,416 2,035,824
------------
3,511,824
------------
LEISURE -- 1.8%
The Topps Co., Inc.* 770,000 8,710,625
------------
MEDIA -- 1.6%
Central Newspapers, Inc. Class A 44,700 2,827,275
Scholastic Corp.* 83,400 5,087,400
------------
7,914,675
------------
METALS -- 0.8%
Reliance Steel & Aluminum Corp. 51,400 983,025
Stillwater Mining Co.* 99,500 2,761,125
------------
3,744,150
------------
MISCELLANEOUS FINANCE -- 3.1%
AmeriCredit Corp.* 161,300 2,742,100
Eaton Vance Corp. 42,000 1,942,500
Investment Technology Group, Inc.* 85,200 3,365,400
Legg Mason, Inc. 120,600 6,030,000
Metris Cos., Inc. 34,326 862,441
------------
14,942,441
------------
OFFICE EQUIPMENT -- 8.2%
Actuate Corp.* 90,975 4,850,105
ANSYS, Inc.* 41,200 468,650
BEA Systems, Inc.* 162,800 8,038,250
Brady Corp. Class A 37,300 1,212,250
Comdisco, Inc. 115,200 2,570,400
InFocus Corp.* 173,600 5,566,050
Jack Henry & Associates, Inc. 87,600 4,390,950
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
OFFICE EQUIPMENT (CONTINUED)
Mercury Interactive Corp.* 76,400 $ 7,391,700
Safeguard Scientific, Inc.* 61,500 1,971,844
SERENA Software, Inc.* 51,900 2,351,719
TenFold Corp.* 76,100 1,246,138
------------
40,058,056
------------
OIL & GAS -- 0.3%
Patina Oil & Gas Corp. 67,100 1,392,325
------------
PHOTOGRAPHIC -- 1.7%
Concord Camera Corp.* 335,400 6,959,550
Zomax, Inc.* 92,000 1,201,750
------------
8,161,300
------------
POLLUTION CONTROL -- 1.0%
Donaldson Co., Inc. 91,900 1,815,025
Stericycle, Inc.* 132,100 3,038,300
------------
4,853,325
------------
RETAIL -- 7.8%
Chico's FAS, Inc.* 66,700 1,317,325
Copart, Inc.* 192,900 3,050,231
Cost Plus, Inc.* 78,750 2,259,141
JAKKS Pacific, Inc.* 128,850 1,892,484
Linens `n Things, Inc.* 32,400 878,850
Pacific Sunwear of California, Inc.* 89,650 1,680,938
Pier 1 Imports, Inc. 569,600 5,553,600
Regis Corp. 139,550 1,735,653
Steven Madden, Ltd.* 118,800 779,625
The Men's Wearhouse, Inc.* 102,400 2,278,400
Tiffany & Co., Inc. 116,600 7,870,500
Trans World Entertainment Corp.* 200,700 2,420,944
Whitehall Jewellers, Inc.* 113,400 1,970,325
Zale Corp.* 115,800 4,226,700
------------
37,914,716
------------
RETAIL - FOOD -- 1.3%
International Home Foods, Inc.* 160,900 3,368,844
RARE Hospitality International, Inc.* 102,000 2,881,500
------------
6,250,344
------------
TELEPHONES -- 0.7%
UTStarcom, Inc.* 30,000 911,250
West TeleServices Corp.* 89,600 2,268,000
------------
3,179,250
------------
THRIFT INSTITUTIONS -- 0.4%
Charter One Financial, Inc. 79,748 1,834,204
------------
TRUCKING -- 0.5%
Pittston Brink's Group 192,500 2,634,844
------------
TOTAL COMMON STOCK
(Cost $363,776,845) 475,634,130
------------
See Notes to Financial Statements.
43
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
TEMPORARY INVESTMENTS -- 2.0%
Dreyfus Cash Management Plus #719 3,247,050 $ 3,247,050
Goldman Sachs Financial Square
Money Market Portfolio 3,340,761 3,340,761
J.P. Morgan Institutional Prime
Money Market Portfolio 3,251,778 3,251,778
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $9,839,589) 9,839,589
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $373,616,434) $485,473,719
============
-------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-incoming producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
44
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $373,616,434) ............... $485,473,719
Collateral for securities loaned ....................... 71,874,749
Dividends receivable ................................... 74,543
Interest receivable .................................... 102,780
Receivable for securities sold ......................... 1,557,462
Receivable for capital stock sold ...................... 8,589,700
Other assets ........................................... 22,245
------------
Total assets .................................... 567,695,198
------------
LIABILITIES
Payable upon return of securities loaned ............... 71,874,749
Payable for securities purchased ....................... 706,188
Payable for capital stock redeemed ..................... 1,331,301
Accrued expenses ....................................... 477,626
------------
Total liabilities ............................... 74,389,864
------------
NET ASSETS
Applicable to 20,231,754 Institutional Shares, 418,872
N Shares and 2,964 A Shares of beneficial interest
outstanding, $.001 par value (Note 7) ................... $493,305,334
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($483,322,587/20,231,754) ............................... $23.89
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($9,912,619/418,872) .................................... $23.67
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($70,128/2,964) ......................................... $23.66
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($23.66/0.945) (Note 5) ................................. $25.04
======
See Notes to Financial Statements.
45
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 91.1%
AEROSPACE -- 6.0%
Alliant Techsystems, Inc.* 38,260 $ 2,580,159
Esterline Technologies Corp.* 187,400 2,775,862
Triumph Group, Inc.* 44,200 1,232,075
------------
6,588,096
------------
AIR TRANSPORT -- 1.0%
Alaska Air Group, Inc.* 22,600 613,025
Continental Airlines, Inc. Class B* 9,800 460,600
------------
1,073,625
------------
APPAREL, TEXTILES -- 1.4%
Oxford Industries, Inc. 57,800 1,040,400
Timberland Co. Class A* 7,200 509,850
------------
1,550,250
------------
AUTO RELATED -- 5.1%
Avis Group Holdings, Inc.* 134,020 2,512,875
Dollar Thrifty Automotive Group, Inc.* 130,330 2,402,959
Tower Automotive, Inc.* 50,800 635,000
------------
5,550,834
------------
AUTOS -- 1.4%
Navistar International Corp.* 48,400 1,503,425
------------
BANKS -- 7.6%
Dain Rauscher Corp. 39,300 2,593,800
Doral Financial Corp. 119,700 1,361,587
GBC Bancorp 70,500 2,062,125
Imperial Bancorp* 95,000 1,484,375
Independent Bank Corp. 73,700 829,125
------------
8,331,012
------------
BUSINESS SERVICES -- 2.7%
Affiliated Computer Services, Inc.* 68,700 2,271,394
Kelly Services, Inc. Class A 30,600 705,712
------------
2,977,106
------------
CASINOS -- 2.4%
Anchor Gaming* 55,000 2,636,562
------------
CHEMICALS -- 5.8%
Cytec Industries, Inc.* 93,600 2,310,750
F.M.C. Corp. 6,100 353,800
Schulman (A.), Inc. 55,820 669,840
W.R. Grace & Co.* 246,000 2,982,750
------------
6,317,140
------------
CONSTRUCTION -- 8.3%
Champion Enterprises, Inc.* 49,200 239,850
Fleetwood Enterprises, Inc. 104,600 1,490,550
Florida Rock Industries, Inc. 15,000 534,375
LNR Property Corp. 184,700 3,601,650
NVR, Inc.* 4,500 256,500
USG Corp. 36,650 1,113,244
Webb Corp. 116,800 1,788,500
------------
9,024,669
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
CONTAINERS -- 0.6%
Libbey, Inc. 21,200 $ 681,050
------------
DRUGS -- 0.6%
Barr Laboratories, Inc.* 14,745 660,760
------------
ELECTRIC & GAS -- 3.9%
Calpine Corp.* 16,620 1,092,765
Cleco Corp. 26,900 901,150
Public Service Co. of New Mexico 101,900 1,573,081
Swift Energy Co.* 25,000 709,375
------------
4,276,371
------------
ELECTRICAL -- 3.4%
General Semiconductor, Inc.* 34,730 512,267
Stoneridge, Inc.* 49,500 433,125
Technitrol, Inc. 8,100 784,687
Woodward Governor Co. 74,160 2,039,400
------------
3,769,479
------------
ELECTRONICS -- 5.5%
C&D Technologies, Inc. 16,600 937,900
Cable Design Technologies, Inc.* 70,560 2,363,760
Diebold, Inc. 87,780 2,446,868
QRS Corp.* 10,000 240,000
------------
5,988,528
------------
ENERGY SERVICES -- 0.8%
Gulf Island Fabrication, Inc.* 49,200 842,550
------------
FOOD & BEVERAGES -- 0.8%
Smithfield Foods, Inc.* 29,500 827,844
------------
FOREST PRODUCTS & PAPER -- 1.4%
Boise Cascade Corp. 15,000 388,125
Buckeye Technologies, Inc.* 51,230 1,123,858
------------
1,511,983
------------
HEALTH CARE SERVICES -- 4.6%
AmeriPath, Inc.* 53,500 461,438
Cooper Cos., Inc. 31,650 1,151,269
Datascope Corp. 37,100 1,335,600
Lincare Holdings, Inc.* 54,200 1,331,288
Pediatrix Medical Group, Inc.* 66,480 772,830
------------
5,052,425
------------
HOTELS & RESTAURANTS -- 0.4%
Bob Evans Farms, Inc. 29,800 445,138
------------
INSURANCE -- 7.1%
AmerUs Life Holdings, Inc. Class A 54,000 1,113,750
Gallagher (Arthur J.) & Co. 103,800 4,359,600
PMI Group, Inc. 49,220 2,337,950
------------
7,811,300
------------
See Notes to Financial Statements.
46
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
MACHINERY & EQUIPMENT -- 2.2%
Graco, Inc. 10,600 $ 360,400
JLG Industries, Inc. 45,000 534,375
SPS Technologies, Inc.* 36,840 1,512,743
------------
2,407,518
------------
METALS -- 1.3%
Reliance Steel & Aluminum Corp. 76,250 1,458,281
------------
MISCELLANEOUS FINANCE -- 3.2%
Advanta Corp. Class A 127,300 1,543,513
Newhall Land & Farming Co. 74,900 1,984,850
------------
3,528,363
------------
OFFICE EQUIPMENT -- 4.7%
Avant! Corp.* 50,000 934,375
Structural Dynamics Research Corp.* 20,000 301,250
Tech Data Corp.* 88,500 3,849,750
------------
5,085,375
------------
RETAIL -- 3.0%
Musicland Stores Corp.* 200,700 1,492,706
Nature's Sunshine Products, Inc. 74,900 524,300
Wet Seal, Inc. Class A* 93,400 1,220,038
------------
3,237,044
------------
TELEPHONES -- 1.4%
TALK.com, Inc.* 125,000 718,750
Viatel, Inc.* 28,510 812,535
------------
1,531,285
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
THRIFT INSTITUTIONS -- 2.6%
Golden State Bancorp, Inc.* 69,300 $ 1,247,400
Indymac Mortgage Holdings, Inc.* 88,570 1,201,231
Sovereign Bancorp, Inc. 60,000 421,875
------------
2,870,506
------------
TRUCKING -- 1.9%
Roadway Express, Inc. 70,000 1,614,375
USFreightways Corp. 18,900 463,050
------------
2,077,425
------------
TOTAL COMMON STOCK
(Cost $101,416,711) 99,615,944
------------
TEMPORARY INVESTMENTS -- 8.9%
Dreyfus Cash Management Plus #719 3,132,325 3,132,325
Goldman Sachs Financial Square
Money Market Portfolio 3,255,495 3,255,495
J.P. Morgan Institutional Prime
Money Market Portfolio 3,302,115 3,302,115
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $9,689,935) 9,689,935
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $111,106,646) $109,305,879
============
----------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
47
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $111,106,646) ............... $109,305,879
Collateral for securities loaned ....................... 6,348,140
Dividends receivable ................................... 43,947
Interest receivable .................................... 49,733
Receivable for securities sold ......................... 8,987,001
Other assets ........................................... 24,457
------------
Total assets .................................... 124,759,157
------------
LIABILITIES
Payable upon return of securities loaned ............... 6,348,140
Payable for securities purchased ....................... 9,241,729
Payable for capital stock redeemed ..................... 1,686,467
Accrued expenses ....................................... 88,171
------------
Total liabilities ............................... 17,364,507
------------
NET ASSETS
Applicable to 3,492,102 Institutional Shares, 22,580 N
Shares and 638.510 A Shares of beneficial interest
outstanding, $.001 par value (Note 7) ................... $107,394,650
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($106,686,252/3,492,102) ................................ $30.55
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($688,916/22,580) ....................................... $30.51
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($19,482/638.510) ....................................... $30.51
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($30.51/0.945) (Note 5) ................................. $32.29
======
See Notes to Financial Statements.
48
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 98.8%
AEROSPACE -- 1.2%
Allegheny Technologies, Inc. 3,797 $ 68,346
B.F. Goodrich Co. 4,900 166,906
Boeing Co. 41,392 1,730,703
Conexant Systems, Inc.* 9,870 479,312
General Dynamics Corp. 9,200 480,700
Honeywell International, Inc. 36,392 1,225,955
Lockheed Martin Corp. 18,242 452,630
Northrop Grumman Holdings Corp. 3,200 212,000
PerkinElmer, Inc. 2,200 145,475
Raytheon Co. Class B 15,500 298,375
Rockwell International Corp. 8,600 270,900
Textron, Inc. 6,600 358,462
United Technologies Corp. 21,450 1,262,869
------------
7,152,633
------------
AIR TRANSPORT -- 0.2%
AMR Corp.* 6,800 179,775
Delta Air Lines, Inc. 5,600 283,150
Southwest Airlines Co. 22,637 428,688
U.S. Airways Group, Inc.* 3,000 117,000
------------
1,008,613
------------
ALCOHOLIC BEVERAGES & TOBACCO-- 1.0%
Anheuser-Busch Cos., Inc. 20,650 1,542,297
Brown-Forman Corp. Class B 3,100 166,625
Coors Adolph Co. Class B 1,700 102,850
Fortune Brands, Inc. 7,200 166,050
Philip Morris Cos., Inc. 104,300 2,770,469
Seagram Co., Ltd. 19,900 1,154,200
UST, Inc. 7,400 108,687
------------
6,011,178
------------
APPAREL, TEXTILES -- 0.1%
Liz Claiborne, Inc. 2,500 88,125
Nike, Inc. Class B 12,450 495,666
Reebok International, Ltd.* 2,600 41,437
Russell Corp. 1,500 30,000
Springs Industries, Inc. Class A 800 25,750
VF Corp. 5,200 124,475
------------
805,453
------------
AUTO RELATED -- 0.3%
Cooper Tire & Rubber Co. 3,400 37,825
Dana Corp. 6,958 147,423
Delphi Automotive Systems Corp. 25,643 376,632
Eaton Corp. 3,300 221,100
Genuine Parts Co. 8,025 160,500
Goodyear Tire & Rubber Co. 7,100 142,000
Harley-Davidson, Inc. 13,800 531,300
T.R.W., Inc. 5,650 245,069
Visteon Corp.* 7,378 89,459
------------
1,951,308
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
AUTOS -- 0.7%
Ford Motor Co. 54,950 $ 2,362,850
General Motors Corp. 24,400 1,416,725
Navistar International Corp.* 2,800 86,975
------------
3,866,550
------------
BANKS -- 6.1%
AmSouth Bancorp 17,950 282,712
Bank of America Corp. 75,627 3,251,961
Bank of New York Co., Inc. 33,650 1,564,725
Bank One Corp. 52,355 1,390,680
BB&T Corp. 15,900 379,612
Chase Manhattan Corp. 56,452 2,600,320
Citigroup, Inc. 153,988 9,277,777
Comerica, Inc. 7,100 318,612
Fifth Third Bancorp 14,151 895,051
First Union Corp. 44,776 1,111,004
Firstar Corp. 44,218 931,342
FleetBoston Financial Corp. 41,107 1,397,638
Huntington Bancshares, Inc. 10,111 159,880
J.P. Morgan & Co., Inc. 7,400 814,925
Keycorp 19,812 349,186
MBNA Corp. 36,605 992,911
Mellon Financial Corp. 22,450 818,022
National City Corp. 27,650 471,778
Northern Trust Corp. 10,150 659,750
Old Kent Financial Corp. 5,922 158,427
PNC Financial Services Group, Inc. 13,200 618,750
Regions Financial Corp. 10,100 200,106
Southtrust Corp. 7,700 174,212
State Street Corp. 7,350 779,559
Summit Bancorp 8,000 197,000
Suntrust Banks, Inc. 13,750 628,203
Synovus Financial Corp. 12,900 227,362
U.S. Bancorp 34,284 659,967
Union Planters Corp. 6,200 173,212
Wachovia Corp. 9,250 501,812
Wells Fargo Co. 73,530 2,849,287
------------
34,835,783
------------
BUSINESS SERVICES -- 3.8%
Adaptec, Inc.* 4,700 106,925
Automatic Data Processing, Inc. 28,600 1,531,887
Cendant Corp.* 32,919 460,866
Ceridian Corp.* 6,600 158,812
Computer Associates International, Inc. 26,812 1,372,439
Computer Sciences Corp.* 7,600 567,625
Convergys Corp.* 7,000 363,125
Deluxe Corp. 3,300 77,756
Dun & Bradstreet Corp. 7,400 211,825
Ecolab, Inc. 5,900 230,469
Electronic Data Systems Corp. 21,200 874,500
FDX Corp.* 13,260 503,880
First Data Corp. 18,800 932,950
H & R Block, Inc. 4,450 144,069
See Notes to Financial Statements.
49
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Ikon Office Solutions, Inc. 6,800 $ 26,350
Interpublic Group of Cos., Inc. 13,800 593,400
National Service Industries, Inc. 1,900 37,050
Oracle Corp.* 129,510 10,878,840
Paychex, Inc. 16,950 711,900
PeopleSoft, Inc.* 12,600 209,475
Quintiles Transnational Corp.* 5,300 74,862
Sabre Holdings Corp. Class A.* 5,864 167,124
Sapient Corp.* 2,650 283,384
Siebel Systems, Inc.* 9,075 1,484,330
------------
22,003,843
------------
CASINOS -- 0.0%
Harrah's Entertainment, Inc.* 5,550 116,203
------------
CHEMICALS -- 2.4%
Air Products & Chemicals, Inc. 10,500 323,531
Avery Dennison Corp. 5,100 342,337
Corning, Inc. 12,600 3,400,425
Dow Chemical Co. 30,850 931,284
E.I. du Pont de Nemours & Co. 47,743 2,088,756
Eastman Chemical Co. 3,500 167,125
F.M.C. Corp.* 1,400 81,200
Great Lakes Chemical Corp. 2,500 78,750
Hercules, Inc. 4,900 68,906
Minnesota Mining & Manufacturing Co. 18,050 1,489,125
P.P.G. Industries, Inc. 7,900 350,069
Pharmacia Corp. 57,914 2,993,430
Praxair, Inc. 7,150 267,678
Rohm & Haas Co. 9,904 341,688
Sealed Air Corp.* 3,847 201,487
Sigma Aldrich Corp. 3,900 114,075
Union Carbide Corp. 6,100 301,950
W.R. Grace & Co.* 3,100 37,587
------------
13,579,403
------------
CONSTRUCTION -- 0.2%
Armstrong Holdings, Inc. 1,800 27,562
Centex Corp. 2,700 63,450
Fluor Corp. 3,500 110,687
Kaufman & Broad Home Corp. 2,200 43,587
Masco Corp. 20,450 369,378
Owens Corning, Inc. 2,500 23,125
Pulte Corp. 1,900 41,087
Sherwin Williams Co. 7,450 157,847
Vulcan Materials Co. 4,550 194,228
------------
1,030,951
------------
CONTAINERS -- 0.1%
Ball Corp. 1,400 45,062
Bemis Co., Inc. 2,400 80,700
Crown Cork & Seal Co., Inc. 5,850 87,750
Owens-Illinois, Inc.* 6,700 78,306
------------
291,818
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
COSMETICS & SOAP -- 1.4%
Alberto-Culver Co. Class B 2,500 $ 76,406
Avon Products, Inc. 10,800 480,600
Clorox Co. 10,700 479,494
Colgate-Palmolive Co. 26,350 1,577,706
Gillette Co. 47,650 1,664,772
International Flavors & Fragrances, Inc. 4,700 141,881
Procter & Gamble Co. 59,650 3,414,962
------------
7,835,821
------------
DRUGS -- 9.6%
Abbott Laboratories, Inc. 70,700 3,150,569
Allergan, Inc. 5,950 443,275
Alza Corp.* 4,700 277,887
American Home Products Corp. 59,450 3,492,687
Amgen, Inc.* 46,800 3,287,700
Bristol-Myers Squibb Co. 89,950 5,239,587
Cardinal Health, Inc. 12,600 932,400
Eli Lilly & Co. 51,500 5,143,562
Johnson & Johnson 63,450 6,463,969
Mallinckrodt, Inc. 3,100 134,656
McKesson HBOC, Inc. 12,874 269,549
MedImmune, Inc. 9,500 702,406
Merck & Co., Inc. 104,850 8,034,131
Pfizer, Inc. 287,125 13,782,000
Schering Plough Corp. 66,800 3,373,400
Watson Pharmaceuticals, Inc.* 4,450 239,187
------------
54,966,965
------------
ELECTRIC & GAS -- 1.7%
AES Corp.* 19,400 885,125
Ameren Corp. 6,250 210,937
American Electric Power Co. 14,650 434,006
Cinergy Corp. 7,236 184,066
Columbia Energy Group 3,650 239,531
Consolidated Edison, Inc. 9,650 285,881
CP&L Energy, Inc. 7,250 231,547
Dominion Resources, Inc. 10,828 464,250
DTE Energy Co. 6,500 198,656
Duke Energy Corp. 16,761 944,901
Eastern Enterprises 1,200 75,600
Edison International 15,200 311,600
Entergy Corp. 10,500 285,469
F.P.L. Group, Inc. 8,100 400,950
FirstEnergy Corp. 10,550 246,606
Florida Progress Corp. 4,450 208,594
GPU, Inc. 5,500 148,844
New Century Energies, Inc. 5,300 162,644
Niagara Mohawk Holdings, Inc.* 7,900 110,106
Nicor, Inc. 2,100 68,512
Northern States Power Co. 7,200 145,350
Oneok, Inc. 1,300 33,719
P.P.& L. Corp. 6,600 144,787
PECO Energy Co. 7,700 310,406
Peoples Energy Corp. 1,600 51,800
PG & E Corp. 17,600 433,400
See Notes to Financial Statements.
50
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
ELECTRIC & GAS (CONTINUED)
Pinnacle West Capital Corp. 3,900 $ 132,112
Public Service Enterprise Group, Inc. 9,900 342,787
Reliant Energy, Inc. 13,443 397,409
Sempra Energy 9,361 159,137
Southern Co. 29,600 690,050
TXU Corp. 12,007 354,206
Unicom Corp. 8,150 315,303
------------
9,608,291
------------
ELECTRICAL -- 4.6%
Cooper Industries, Inc. 4,300 140,019
Emerson Electric Co. 19,500 1,177,312
General Electric Co. 451,350 23,018,850
Grainger W.W., Inc. 4,300 132,494
Johnson Controls, Inc. 3,900 200,119
Molex, Inc. 8,925 430,073
Solectron Corp.* 27,150 1,136,906
------------
26,235,773
------------
ELECTRONICS -- 11.9%
Advanced Micro Devices, Inc.* 6,950 536,887
Agilent Technologies, Inc.* 20,639 1,522,126
Altera Corp.* 9,100 927,062
America Online, Inc.* 104,750 5,525,563
American Power Conversion Corp.* 8,800 358,600
Analog Devices, Inc.* 16,150 1,227,400
Andrew Corp.* 3,687 123,745
Gateway, Inc.* 14,650 831,388
Intel Corp. 152,750 20,411,219
KLA Tencor Corp.* 8,500 497,781
Linear Technology Corp. 14,200 907,025
LSI Logic Corp.* 14,000 757,750
Lucent Technologies, Inc. 148,519 8,799,751
Maxim Integrated Products, Inc. 12,900 876,394
Micron Technology, Inc.* 25,300 2,227,981
Motorola, Inc. 98,170 2,853,066
National Semiconductor Corp.* 8,100 459,675
Nortel Networks Corp. 135,120 9,221,940
Novellus Systems, Inc. 6,000 339,375
Parametric Technology Corp.* 12,600 137,813
PE Corp.- PE Biosystems Group 9,550 629,106
Sanmina Corp.* 6,800 580,975
Scientific Atlanta, Inc. 7,300 543,850
Tektronix, Inc. 2,200 160,050
Tellabs, Inc.* 18,700 1,279,781
Teradyne, Inc.* 7,950 584,325
Texas Instruments, Inc. 74,600 5,124,088
Thomas & Betts Corp. 2,600 49,725
Xilinx, Inc.* 14,700 1,213,669
------------
68,708,110
------------
ENERGY SERVICES -- 0.8%
Baker Hughes, Inc. 15,020 480,640
CMS Energy Corp. 5,000 110,625
Constellation Energy Group 6,800 221,425
Halliburton Co. 20,300 957,906
Rowan Cos., Inc.* 4,300 130,613
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
ENERGY SERVICES (CONTINUED)
Schlumberger, Ltd. 26,000 $ 1,940,250
Transocean Sedco Forex, Inc. 9,649 515,618
------------
4,357,077
------------
FOOD & BEVERAGES -- 3.0%
Archer-Daniels-Midland Co. 27,454 269,392
Bestfoods, Inc. 12,500 865,625
Campbell Soup Co. 19,250 560,656
Coca-Cola Co. 112,900 6,484,694
Coca-Cola Enterprises, Inc. 19,150 312,384
Conagra, Inc. 22,500 428,906
Energizer Holdings, Inc. 1 18
General Mills, Inc. 13,300 508,725
Heinz H.J. Co. 16,100 704,375
Hershey Foods Corp. 6,300 306,731
Kellogg Co. 18,550 551,863
Nabisco Group Holdings Corp. 14,900 386,469
Pepsico, Inc. 65,700 2,919,544
Quaker Oats Co. 5,950 446,994
Ralston Purina Group 14,000 279,125
Sara Lee Corp. 39,700 766,706
Unilever N.V 26,039 1,119,677
Wm. Wrigley Jr., Co. 5,250 420,984
------------
17,332,868
------------
FOREST PRODUCTS & PAPER -- 0.6%
Boise Cascade Corp. 2,650 68,569
Fort James Corp. 9,400 217,375
Georgia Pacific Corp. 7,800 204,750
International Paper Co. 25,200 751,275
Kimberly-Clark Corp. 25,378 1,456,063
Louisiana-Pacific Corp. 4,800 52,200
Mead Corp. 4,700 118,675
Potlatch Corp. 1,300 43,063
Temple Inland, Inc. 2,350 98,700
Westvaco Corp. 4,600 114,138
Weyerhaeuser Co. 10,650 457,950
Willamette Industries, Inc. 5,100 138,975
------------
3,721,733
------------
HEALTH CARE SERVICES -- 1.6%
Bausch & Lomb, Inc. 2,400 185,700
Baxter International, Inc. 13,250 931,641
Becton, Dickinson & Co. 11,500 329,906
Biogen, Inc.* 6,750 434,953
Biomet, Inc. 5,400 207,563
Boston Scientific Corp.* 18,550 406,941
C.R. Bard, Inc. 2,300 110,688
Cigna Corp. 7,400 691,900
Guidant Corp. 13,950 690,525
HCA-The Healthcare Co. 25,482 774,016
Healthsouth Corp.* 17,600 126,500
Humana, Inc.* 7,700 40,906
IMS Health, Inc. 13,600 244,800
Manor Care, Inc.* 4,650 32,550
Medtronic, Inc. 54,600 2,719,763
Millipore Corp. 2,150 162,056
See Notes to Financial Statements.
51
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
HEALTH CARE SERVICES (CONTINUED)
St. Jude Medical, Inc.* 3,800 $ 174,325
Tenet Healthcare Corp.* 14,300 386,100
Unitedhealth Group, Inc. 7,400 634,550
Wellpoint Health Networks, Inc.* 2,800 202,825
------------
9,488,208
------------
HOTELS & RESTAURANTS -- 0.5%
Darden Restaurants, Inc. 5,600 91,000
Hilton Hotels Corp. 16,800 157,500
Marriott International, Inc. Class A 10,900 393,081
McDonald's Corp. 60,950 2,007,541
Tricon Global Restaurants, Inc.* 6,680 188,710
Wendy's International, Inc. 5,200 92,625
------------
2,930,457
------------
HOUSEHOLD GOODS -- 0.2%
Black & Decker Corp. 3,900 153,319
Leggett & Platt, Inc. 9,000 148,500
Maytag Corp. 3,600 132,750
Newell Rubbermaid, Inc. 12,150 312,863
Tupperware Corp. 2,600 57,200
Whirlpool Corp. 3,300 153,863
------------
958,495
------------
INSURANCE -- 2.9%
Aetna, Inc. 6,463 414,844
AFLAC, Inc. 12,100 555,844
Allstate Corp. 33,940 755,165
American General Corp. 11,346 692,106
American International Group, Inc. 70,272 8,256,960
Aon Corp. 11,650 361,878
Chubb Corp. 8,000 492,000
Cincinnati Financial Corp. 7,300 229,494
Conseco, Inc. 14,882 145,100
Hartford Financial Services Group, Inc. 9,850 550,984
Jefferson-Pilot Corp. 4,700 265,256
Lincoln National Corp. 8,700 314,288
Loews Corp. 4,500 270,000
Marsh & McLennan Cos., Inc. 12,250 1,279,359
MBIA, Inc. 4,450 214,434
MGIC Investment Corp. 4,800 218,400
Progressive Corp. 3,350 248,109
Providian Financial Corp. 6,450 580,500
Safeco Corp. 5,800 115,275
St. Paul Cos., Inc. 9,718 331,627
Torchmark Corp. 5,800 143,188
UnumProvident Corp. 10,934 219,363
------------
16,654,174
------------
LEISURE -- 0.2%
Brunswick Corp. 4,000 66,250
Carnival Corp. 27,600 538,200
Hasbro, Inc. 7,875 118,617
Mattel, Inc. 19,437 256,325
------------
979,392
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
MACHINERY & EQUIPMENT -- 1.9%
Applied Materials, Inc.* 36,850 $ 3,339,531
Briggs & Stratton Corp. 1,000 34,250
Caterpillar, Inc. 15,900 538,613
Crane Co. 2,750 66,859
Danaher Corp. 6,500 321,344
Deere & Co. 10,700 395,900
Dover Corp. 9,250 375,203
Illinois Tool Works, Inc. 13,800 786,600
Ingersoll Rand Co. 7,400 297,850
ITT Industries, Inc. 4,000 121,500
McDermott International, Inc. 2,700 23,794
Milacron, Inc. 1,600 23,200
Pactiv Corp. 7,700 60,638
Pall Corp. 5,633 106,323
Parker-Hannifin Corp. 5,125 175,531
Snap-On, Inc. 2,700 76,275
Stanley Works, Inc. 3,950 93,813
Thermo Electron Corp.* 7,100 149,988
Timken Co. 2,800 52,150
Tyco International, Ltd. 77,004 3,648,065
------------
10,687,427
------------
MEDIA -- 3.4%
Clear Channel Communications, Inc.* 15,500 1,162,500
Comcast Corp. Special Class A Non-Voting 40,950 1,661,034
Dow Jones & Co., Inc. 4,050 296,663
Gannett Co., Inc. 12,200 729,713
Knight-Ridder, Inc. 3,500 186,156
McGraw-Hill Cos., Inc. 8,850 477,900
Meredith Corp. 2,300 77,625
New York Times Co. Class A 7,800 308,100
Omnicom Group, Inc. 8,100 721,406
R.R. Donnelley & Sons Co. 5,600 126,350
Time Warner, Inc. 60,000 4,560,000
Times Mirror Co. 2,800 253,750
Tribune Co. 7,050 246,750
Viacom, Inc. Class B* 69,569 4,743,736
Walt Disney Co. 94,750 3,677,484
Young & Rubicam, Inc. 3,300 188,719
------------
19,417,886
------------
METALS -- 0.5%
Alcan Aluminium, Ltd. 9,950 308,450
Alcoa, Inc. 39,442 1,143,818
Barrick Gold Corp. 18,000 327,375
Bethlehem Steel Corp.* 6,000 21,375
Engelhard Corp. 5,787 98,741
Freeport-McMoran Copper & Gold, Inc.* 7,300 67,525
Homestake Mining Co. 11,900 81,813
Inco, Ltd. 8,250 126,844
Newmont Mining Corp. 7,674 165,950
Nucor Corp. 3,900 129,431
Phelps Dodge Corp. 3,577 133,020
Placer Dome, Inc. 14,900 142,481
USX-U.S. Steel Group, Inc. 4,000 74,250
Worthington Industries, Inc. 3,950 41,475
------------
2,862,548
------------
See Notes to Financial Statements.
52
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
MISCELLANEOUS FINANCE -- 3.4%
American Express Co. 60,900 $ 3,174,413
Associates First Capital Corp. Class A 33,182 740,373
Bear Stearns Cos., Inc. 5,055 210,414
Capital One Financial Corp. 8,900 397,163
Charles Schwab Corp. 62,075 2,087,272
Countrywide Credit Industries, Inc. 5,200 157,625
Equifax, Inc. 6,400 168,400
Federal Home Loan Mortgage Corp. 31,750 1,285,875
Federal National Mortgage Association 46,000 2,400,625
Franklin Resources, Inc. 11,100 337,163
Household International, Inc. 21,583 897,043
Lehman Brothers Holdings, Inc. 5,500 520,094
Merrill Lynch & Co., Inc. 17,700 2,035,500
Morgan Stanley Dean Witter & Co. 51,638 4,298,864
PaineWebber Group, Inc. 6,600 300,300
SLM Holding Corp. 7,150 267,678
T. Rowe Price Associates, Inc. 5,500 233,750
------------
19,512,552
------------
OFFICE EQUIPMENT -- 15.4%
3Com Corp.* 16,000 921,000
Adobe Systems, Inc. 5,450 707,819
Apple Computer, Inc.* 14,800 774,225
Autodesk, Inc. 2,650 91,922
BMC Software, Inc.* 11,100 404,456
Cabletron Systems, Inc.* 8,350 210,838
Cisco Systems, Inc.* 317,350 20,171,559
Citrix Systems, Inc.* 8,450 160,022
Compaq Computer Corp. 77,421 1,979,074
Compuware Corp.* 16,450 169,641
Comverse Technology, Inc.* 7,000 651,000
Dell Computer Corp.* 117,500 5,794,219
EMC Corp.* 99,000 7,616,813
Hewlett Packard Co. 45,650 5,700,544
International Business Machines Corp. 80,900 8,863,606
Lexmark International Group, Inc. Class A* 5,850 393,413
Microsoft Corp.* 240,050 19,188,997
NCR Corp.* 4,300 167,431
Network Appliance, Inc.* 13,850 1,114,059
Novell, Inc.* 15,000 138,750
Pitney Bowes, Inc. 11,800 472,000
Seagate Technology, Inc.* 10,350 569,250
Sun Microsystems, Inc.* 72,400 6,583,875
Unisys Corp.* 14,200 206,788
VERITAS Software Corp.* 17,800 2,011,400
Xerox Corp. 30,350 607,000
Yahoo! Inc.* 24,800 3,072,100
------------
88,741,801
------------
OIL & GAS -- 5.4%
Amerada Hess Corp. 4,100 253,175
Anadarko Petroleum Corp. 5,850 288,478
Apache Corp. 5,200 305,825
Ashland, Inc. 3,250 113,953
Burlington Resources, Inc. 9,782 374,162
Chevron Corp. 29,700 2,518,931
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
OIL & GAS (CONTINUED)
Coastal Corp. 9,750 $ 593,531
Conoco, Inc. Class B 28,517 700,449
El Paso Energy Corp. 10,550 537,391
Enron Corp. 33,400 2,154,300
Exxon Mobil Corp. 158,767 12,473,132
Kerr-McGee Corp. 4,312 254,139
Occidental Petroleum Corp. 16,835 354,587
Phillips Petroleum Co. 11,600 587,975
Royal Dutch Petroleum Co. 97,800 6,020,813
Sunoco, Inc. 4,055 119,369
Texaco, Inc. 25,200 1,341,900
Tosco Corp. 6,600 188,925
Union Pacific Resources Group, Inc. 11,501 253,022
Unocal Corp. 11,100 367,688
USX-Marathon Group, Inc. 14,200 355,888
Williams Cos., Inc. 20,200 842,088
------------
30,999,721
------------
PHOTOGRAPHIC -- 0.1%
Eastman Kodak Co. 14,100 838,950
Polaroid Corp. 2,000 36,125
------------
875,075
------------
POLLUTION CONTROL -- 0.1%
Allied Waste Industries, Inc.* 8,600 86,000
Waste Management, Inc. 28,375 539,125
------------
625,125
------------
RAILROADS -- 0.3%
Burlington Northern Santa Fe Corp. 19,493 447,121
CSX Corp. 9,950 210,816
Kansas City Southern Industries, Inc. 5,100 452,306
Norfolk Southern Corp. 17,500 260,313
Union Pacific Corp. 11,300 420,219
------------
1,790,775
------------
RETAIL -- 5.1%
American Greetings Corp. Class A 2,900 55,100
Autozone, Inc.* 6,100 134,200
Bed, Bath & Beyond, Inc.* 6,450 233,409
Best Buy Co., Inc.* 9,300 588,225
Circuit City Stores, Inc. 9,300 308,644
Consolidated Stores Corp.* 5,100 65,981
Costco Wholesale Corp.* 20,342 671,286
CVS Corp. 17,750 710,000
Dillard's, Inc. Class A 4,300 52,675
Dollar General Corp. 15,038 293,241
Federated Department Stores, Inc.* 9,800 330,750
Gap, Inc. 38,812 1,212,875
Harcourt General, Inc. 3,300 179,438
Home Depot, Inc. 105,547 5,270,753
K Mart Corp.* 21,900 149,194
Kohls Corp.* 14,900 828,813
Limited, Inc. 19,600 423,850
Longs Drug Stores, Inc. 1,800 39,150
Lowe's Cos., Inc. 17,400 714,488
See Notes to Financial Statements.
53
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
RETAIL (CONTINUED)
May Department Stores Co. 15,150 $ 363,600
Nordstrom, Inc. 6,100 147,163
Office Depot, Inc.* 14,400 90,000
Penney, J.C. Co. 11,950 220,328
RadioShack Corp. 8,500 402,688
Rite Aid Corp. 11,800 77,438
Sears, Roebuck & Co. 16,100 525,263
Staples, Inc.* 22,100 339,788
Target Corp. 20,800 1,206,400
Tiffany & Co., Inc. 3,300 222,750
TJX Cos., Inc. 13,650 255,938
Toys "R" Us, Inc.* 9,900 144,169
Wal-Mart Stores, Inc. 203,350 11,718,044
Walgreen Co. 45,950 1,479,016
------------
29,454,657
------------
RETAIL - FOOD -- 0.6%
Albertson's, Inc. 19,360 643,720
Great Atlantic & Pacific Tea Co., Inc. 1,800 29,925
Kroger Co.* 38,050 839,478
Safeway, Inc.* 22,650 1,022,081
Starbucks Corp. 8,400 320,775
Supervalu, Inc. 6,000 114,375
Sysco Corp. 15,150 638,194
Winn-Dixie Stores, Inc. 6,600 94,463
------------
3,703,011
------------
TELEPHONES -- 7.3%
ADC Telecommunications, Inc.* 13,900 1,164,994
Alltel Corp. 14,400 891,900
AT&T Corp. 171,212 5,414,580
Bell Atlantic Corp. 70,504 3,582,485
BellSouth Corp. 85,850 3,659,356
CenturyTel, Inc. 6,400 184,000
Global Crossing, Ltd.* 40,270 1,059,604
GTE Corp. 43,950 2,735,888
Nextel Communications, Inc. Class A* 34,600 2,117,088
Qualcomm, Inc.* 33,850 2,028,884
SBC Communications, Inc. 155,168 6,711,016
Sprint Corp. (FON Group) 39,950 2,037,450
Sprint Corp. (PCS Group)* 41,750 2,484,125
US West, Inc. 23,161 1,986,056
Worldcom, Inc.* 130,628 5,992,560
------------
42,049,986
------------
THRIFT INSTITUTIONS -- 0.2%
Charter One Financial, Inc. 9,600 220,800
Golden West Financial Corp. 7,250 295,891
Washington Mutual, Inc. 24,993 721,673
------------
1,238,364
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
TRUCKING -- 0.0%
Cummins Engine Co., Inc. 1,900 $ 51,775
Paccar, Inc. 3,490 138,509
Ryder System, Inc. 2,730 51,699
------------
241,983
------------
TOTAL COMMON STOCK
(Cost $342,516,349) 568,632,011
------------
CONVERTIBLE PREFERRED STOCK -- 0.0%
CONTAINERS
Sealed Air Corp., $2.00, 04/01/18, Series A 1,282 64,901
(Cost $42,011) ------------
COUPON PAR
RATE MATURITY (000)
-------- -------- -----
ASSET-BACKED SECURITIES -- 0.8%
Wesley Commercial & Residential Funding
Series 2000-1, Class A
(Cost $4,459,134)
6.645% 07/31/00 $4,459 4,463,125
------------
U.S. TREASURY OBLIGATIONS -- 0.2%
U.S. Treasury Bills**
(Cost $988,208)
5.660% 09/14/00 1,000 988,563
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 0.2%
Dreyfus Cash Management Plus #719 199,089 199,089
Goldman Sachs Financial Square
Money Market Portfolio 416,610 416,610
J.P. Morgan Institutional Prime
Money Market Portfolio 455,597 455,597
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $1,071,296) 1,071,296
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $349,076,998) $575,219,896
============
------------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
** Securities pledged as collateral for futures contracts.
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
--------- ------------
Futures Contracts -- Long Position
S&P 500 Index, September 2000 27 $(94,750)
== =========
See Notes to Financial Statements.
54
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $349,076,998) ............... $575,219,896
Collateral for securities loaned ....................... 58,652,665
Dividends receivable ................................... 446,629
Interest receivable .................................... 32,156
Receivable for securities sold ......................... 8,762,809
Receivable for capital stock sold ...................... 524,314
Futures margin receivable .............................. 68,175
Other assets ........................................... 6,404
------------
Total assets .................................... 643,713,048
------------
LIABILITIES
Payable upon return of securities loaned ............... 58,652,665
Payable for securities purchased ....................... 6,190,834
Payable for capital stock redeemed ..................... 370,021
Accrued expenses ....................................... 201,272
------------
Total liabilities ............................... 65,414,792
------------
NET ASSETS
Applicable to 16,889,068 Institutional Shares and 784,995
N Shares of beneficial interest outstanding, $.001
par value (Note 7) ...................................... $578,298,256
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($552,619,130/16,889,068) ............................... $32.72
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($25,679,126/784,995) ................................... $32.71
======
See Notes to Financial Statements.
55
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 52.2%
AEROSPACE -- 2.9%
Alliant Techsystems, Inc.* 760 $ 51,252
B.F. Goodrich Co. 1,500 51,094
Esterline Technologies Corp.* 3,200 47,400
Litton Industries, Inc.* 3,200 134,400
Lockheed Martin Corp. 5,000 124,062
Triumph Group, Inc.* 700 19,512
United Technologies Corp. 600 35,325
-----------
463,045
-----------
AIR TRANSPORT -- 0.7%
Alaska Air Group, Inc.* 350 9,494
Delta Air Lines, Inc. 500 25,281
Mesaba Holdings, Inc.* 3,600 32,850
UAL Corp. 700 40,731
-----------
108,356
-----------
ALCOHOLIC BEVERAGES & TOBACCO -- 0.7%
Anheuser-Busch Cos., Inc. 800 59,750
Canandaigua Brands, Inc. Class A* 900 45,394
-----------
105,144
-----------
APPAREL, TEXTILES -- 0.2%
Timberland Co. Class A* 500 35,406
-----------
AUTO RELATED -- 0.6%
Avis Group Holdings, Inc.* 2,250 42,187
Dollar Thrifty Automotive Group, Inc.* 2,600 47,937
Tower Automotive, Inc.* 650 8,125
Visteon Corp.* 340 4,128
-----------
102,377
-----------
AUTOS -- 1.2%
Ford Motor Co. 2,600 111,800
General Motors Corp. 1,400 81,287
-----------
193,087
-----------
BANKS -- 3.6%
Bank of New York Co., Inc. 2,900 134,850
Citigroup, Inc. 1,500 90,375
Dain Rauscher Corp. 930 61,380
Doral Financial Corp. 1,350 15,356
First Citizens BancShares, Inc. Class A 970 57,351
GBC Bancorp 1,200 35,100
Southtrust Corp. 2,200 49,775
Wells Fargo Co. 3,300 127,875
-----------
572,062
-----------
BUSINESS SERVICES -- 4.1%
Amdocs, Ltd.* 652 50,041
Automatic Data Processing, Inc. 3,100 166,044
DeVry, Inc.* 1,300 34,369
Electronic Data Systems Corp. 2,400 99,000
Fiserv, Inc.* 1,500 64,875
Oracle Corp.* 1,300 109,200
Reynolds & Reynolds Co. Class A 2,900 52,925
Viad Corp. 3,200 87,200
-----------
663,654
-----------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
CASINOS -- 0.6%
Mandalay Resort Group* 4,800 $ 96,000
-----------
CHEMICALS -- 1.3%
Cytec Industries, Inc.* 1,550 38,266
F.M.C. Corp.* 2,130 123,540
Schulman (A.), Inc. 900 10,800
W.R. Grace & Co.* 3,500 42,437
-----------
215,043
-----------
CONSTRUCTION -- 1.7%
Centex Corp. 2,200 51,700
Fleetwood Enterprises, Inc. 1,650 23,512
LNR Property Corp. 3,200 62,400
M.D.C. Holdings, Inc. 1,650 30,731
NVR, Inc.* 950 54,150
Sherwin Williams Co. 2,600 55,087
-----------
277,580
-----------
CONTAINERS -- 0.3%
Crown Cork & Seal Co., Inc. 1,300 19,500
Owens-Illinois, Inc.* 2,200 25,712
-----------
45,212
-----------
DRUGS -- 2.3%
King Pharmaceuticals, Inc.* 1,118 49,030
Merck & Co., Inc. 1,900 145,587
Pfizer, Inc. 3,575 171,600
-----------
366,217
-----------
ELECTRIC & GAS -- 1.6%
Energy East Corp. 4,400 83,875
Reliant Energy, Inc. 5,600 165,550
-----------
249,425
-----------
ELECTRICAL -- 0.2%
Technitrol, Inc. 340 32,937
-----------
ELECTRONICS -- 3.3%
Agilent Technologies, Inc.* 190 14,012
Arrow Electronics, Inc.* 1,000 31,000
C&D Technologies, Inc. 1,100 62,150
Intel Corp. 1,800 240,525
Tellabs, Inc.* 600 41,062
Texas Instruments, Inc. 800 54,950
Vishay Intertechnology, Inc.* 2,250 85,359
-----------
529,058
-----------
FOOD & BEVERAGES -- 0.6%
Smithfield Foods, Inc.* 3,500 98,219
-----------
FOREST PRODUCTS & PAPER -- 0.9%
American Israeli Paper Mills, Ltd. 550 35,750
Boise Cascade Corp. 1,500 38,812
Buckeye Technologies, Inc.* 750 16,453
Georgia Pacific Corp. 2,200 57,750
-----------
148,765
-----------
See Notes to Financial Statements.
56
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
HEALTH CARE SERVICES -- 1.8%
Beckman Coulter, Inc. 800 $ 46,700
Health Care Property Investors, Inc. 2,000 54,500
St. Jude Medical, Inc.* 2,100 96,338
Wellpoint Health Networks, Inc.* 1,200 86,925
-----------
284,463
-----------
HOTELS & RESTAURANTS -- 1.3%
Brinker International, Inc.* 1,200 35,100
Darden Restaurants, Inc. 5,475 88,969
Outback Steakhouse, Inc.* 2,800 81,900
-----------
205,969
-----------
INSURANCE -- 1.7%
AXA Financial, Inc. 3,900 132,600
AmerUs Life Holdings, Inc. Class A 900 18,563
CNA Surety Corp. 5,600 66,850
Gallagher (Arthur J.) & Co. 1,240 52,080
-----------
270,093
-----------
MACHINERY & EQUIPMENT -- 0.7%
Applied Materials, Inc.* 600 54,375
Gardner Denver Machinery, Inc.* 1,550 27,706
SPS Technologies, Inc.* 550 22,584
-----------
104,665
-----------
MEDIA -- 0.3%
Walt Disney Co. 1,100 42,694
-----------
METALS -- 0.4%
Commercial Metals Co. 1,400 38,500
Reliance Steel & Aluminum Corp. 1,200 22,950
-----------
61,450
-----------
MISCELLANEOUS FINANCE -- 3.3%
Advanta Corp. Class A 1,100 13,338
American Express Co. 1,200 62,550
Financial Federal Corp.* 3,200 55,600
Lehman Brothers Holdings, Inc. 1,800 170,213
Morgan Stanley Dean Witter & Co. 1,600 133,200
PaineWebber Group, Inc. 2,200 100,100
-----------
535,001
-----------
OFFICE EQUIPMENT -- 3.9%
Adobe Systems, Inc. 700 90,913
Apple Computer, Inc.* 1,000 52,313
Compaq Computer Corp. 1,300 33,231
Dell Computer Corp.* 1,500 73,969
Hewlett Packard Co. 700 87,413
International Business Machines Corp. 2,100 230,081
Tech Data Corp.* 1,350 58,725
-----------
626,645
-----------
OIL & GAS -- 4.2%
Coastal Corp. 4,600 280,025
Conoco, Inc. Class B 8,000 196,500
Texaco, Inc. 700 37,275
USX-Marathon Group, Inc. 6,600 165,413
-----------
679,213
-----------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
POLLUTION CONTROL -- 0.4%
Republic Services, Inc.* 3,600 $ 57,600
-----------
RAILROADS -- 0.2%
Canadian Pacific, Ltd. 1,400 36,663
-----------
RETAIL -- 2.3%
BJ's Wholesale Club, Inc.* 2,300 75,900
Federated Department Stores, Inc.* 1,200 40,500
Intimate Brands, Inc. Class A 4,150 81,963
Limited, Inc. 3,000 64,875
Musicland Stores Corp.* 3,450 25,659
Ross Stores, Inc. 2,400 40,800
Target Corp. 700 40,600
-----------
370,297
-----------
RETAIL - FOOD -- 1.0%
Supervalu, Inc. 3,900 74,344
Sysco Corp. 1,900 80,038
-----------
154,382
-----------
TELEPHONES -- 3.3%
ADC Telecommunications, Inc.* 2,800 234,675
BellSouth Corp. 2,400 102,300
GTE Corp. 1,100 68,475
Sprint Corp. (FON Group) 900 45,900
Worldcom, Inc.* 1,700 77,988
-----------
529,338
-----------
THRIFT INSTITUTIONS -- 0.4%
Dime Community Bancshares, Inc. 3,600 57,600
-----------
TRUCKING -- 0.2%
CNF Transportation, Inc. 1,600 36,400
-----------
TOTAL COMMON STOCK
(Cost $7,498,213) 8,354,060
-----------
COUPON PAR
RATE MATURITY (000)
----------- -------- ------
ASSET-BACKED SECURITIES -- 1.8%
First Plus Home Loan Trust
Series 1997-3, Class A6 (Cost $287,653)
7.080% 07/10/17 $ 285 283,028
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 12.5%
Asset Securitization Corp.
Series 1997-D5, Class PS1 IO
1.610% 02/14/41 2,901 246,908
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
6.427% 05/28/28 333 301,948
Federal National Mortgage Association
Series 145, Class 1 PO
9.690% 06/25/22 412 314,320
See Notes to Financial Statements.
57
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 $ 2,148 $ 144,432
Federal National Mortgage Association
Series 1997-84, Class PL IO
6.500% 02/25/09 3,092 258,770
Federal National Mortgage Association
Series 1998-61, Class PB
5.500% 12/25/08 520 496,742
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 143 142,190
Structured Asset Securities Corp.
Series 1998-R3, Class A1 IO
6.100% 01/15/13 538 98,129
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,021,170) 2,003,439
-----------
MORTGAGE-BACKED SECURITIES -- 10.6%
Federal National Mortgage Association
7.000% 01/15/30 600 578,719
Federal National Mortgage Association
Pool #345739
7.500% 03/01/27 40 39,959
Federal National Mortgage Association
Pool #363317
7.500% 11/01/26 11 10,680
Federal National Mortgage Association
Pool #368941
7.500% 12/01/26 330 326,939
Federal National Mortgage Association
Pool #371323
7.500% 03/01/27 242 239,544
Government National Mortgage Association
Pool #354675
6.500% 10/15/23 529 507,900
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $1,721,007) 1,703,741
-----------
CORPORATE BONDS -- 2.6%
FINANCE - BANK -- 0.8%
NationsBank Corp.
7.250% 10/15/25 140 126,500
-----------
FINANCE - NON-BANK -- 0.9%
General Motors Acceptance Corp.
7.750% 01/19/10 150 149,186
-----------
INDUSTRIAL -- 0.2%
Nordstrom, Inc.
6.950% 03/15/28 40 33,075
-----------
TELEPHONES -- 0.7%
Sprint Capital Corp.
6.900% 05/01/19 125 111,227
-----------
TOTAL CORPORATE BONDS
(Cost $443,974) 419,988
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
YANKEE BONDS -- 2.3%
Empresa Nacional Electric
7.750% 07/15/08 $ 150 $ 139,625
Korea Development Bank
7.375% 09/17/04 90 87,732
United Utilities P.L.C.
6.450% 04/01/08 150 134,033
-----------
TOTAL YANKEE BONDS
(Cost $388,609) 361,390
-----------
U.S. TREASURY OBLIGATIONS -- 14.4%
U.S. TREASURY BONDS -- 4.0%
8.750% 08/15/20 505 647,978
-----------
U.S. TREASURY NOTES -- 5.6%
7.000% 07/15/06 790 818,638
5.625% 05/15/08 22 21,223
6.500% 02/15/10 55 56,822
-----------
896,683
-----------
U.S. TREASURY STRIPS -- 4.8%
0.000% 11/15/04 535 406,847
0.000% 02/15/15 900 362,944
-----------
769,791
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,292,152) 2,314,452
-----------
SHARES
--------
TEMPORARY INVESTMENTS -- 3.6%
Dreyfus Cash Management Plus #719 184,034 184,034
Goldman Sachs Financial Square
Money Market Portfolio 199,823 199,823
J.P. Morgan Institutional Prime
Money Market Portfolio 185,623 185,623
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $569,480) 569,480
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $15,222,258) $16,009,578
===========
-------------
(DAGGER)See Note 2a to the Financial Statements.
*Non-income producing security.
IO -- Interest Only Security.
PO -- Principal Only Security; interest rate is effective yield.
See Notes to Financial Statements.
58
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $15,222,258) ................ $16,009,578
Collateral for securities loaned ....................... 641,859
Dividends receivable ................................... 4,796
Interest receivable .................................... 116,923
Receivable for securities sold ......................... 580,070
Receivable for capital stock sold ...................... 5,800,059
Other assets ........................................... 42,672
-----------
Total assets .................................... 23,195,957
-----------
LIABILITIES
Payable upon return of securities loaned ............... 641,859
Payable for securities purchased ....................... 1,158,617
Payable for capital stock redeemed ..................... 2,709,959
Accrued expenses ....................................... 18,356
-----------
Total liabilities ............................... 4,528,791
-----------
NET ASSETS
Applicable to 1,286,766 Institutional Shares, 150,145 N
Shares and 10,246 A Shares of beneficial interest
outstanding, $.001 par value (Note 7) ................... $18,667,166
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($16,598,382/1,286,766) ................................. $12.90
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($1,936,675/150,145) .................................... $12.90
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($132,109/10,246) ....................................... $12.89
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($12.89/0.945) (Note 5) ................................. $13.64
======
See Notes to Financial Statements.
59
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 94.8%
AUSTRALIA -- 4.0%
National Australia Bank, Ltd. 206,112 $ 3,452,484
North, Ltd. 1,900,000 4,506,154
Orica, Ltd. 605,000 2,752,741
------------
10,711,379
------------
AUSTRIA -- 1.8%
Bank Austria A.G 30,500 1,491,670
Boehler-Uddeholm A.G 35,000 1,229,630
VA Technologie A.G 39,500 2,089,350
------------
4,810,650
------------
BERMUDA -- 1.1%
XL Capital, Ltd.- A 55,000 2,976,875
------------
BRAZIL -- 1.7%
Companhia Vale do Rio Doce ADR 75,000 2,118,750
Embratel Participacoes S.A. ADR 105,000 2,480,625
------------
4,599,375
------------
CHINA -- 0.8%
Shanghai Petrochemical Co., Ltd. 15,000,000 2,039,761
------------
CROATIA -- 0.4%
Pliva D.D. GDR 116,000 1,197,700
------------
CZECH REPUBLIC -- 0.6%
Komercni Banka A.S. GDR* 221,900 1,508,920
------------
DENMARK -- 0.9%
Nordic Baltic Holding AB* 321,411 2,354,160
------------
FINLAND -- 0.8%
Fortum Oyj 274,400 1,078,451
Metso Oyj 100,000 1,207,822
------------
2,286,273
------------
FRANCE -- 3.9%
Alstom 110,000 2,985,142
Compagnie de Saint Gobain 20,000 2,714,724
Pechiney S.A.- A 60,000 2,513,420
Usinor S.A 200,000 2,450,153
------------
10,663,439
------------
GERMANY -- 5.5%
BASF A.G 61,000 2,485,142
DaimlerChrysler A.G 50,000 2,664,877
E.On A.G 68,920 3,336,331
Jenoptik A.G 50,700 1,458,014
Linde A.G 60,000 2,432,899
Merck KGAA 80,000 2,453,988
------------
14,831,251
------------
GREECE -- 0.9%
Hellenic Telecommunications Organization
(OTE) S.A 100,000 2,450,070
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
HONG KONG -- 3.1%
HSBC Holdings P.L.C 249,102 $ 2,844,130
Hutchison Whampoa, Ltd. 220,000 2,765,865
Smartone Telecommunications
Holdings, Ltd. 1,200,000 2,655,538
------------
8,265,533
------------
HUNGARY -- 0.8%
Magyar Tavkozlesi Rt. ADR 60,000 2,066,250
------------
INDONESIA -- 0.6%
PT Indosat 1,500,000 1,765,267
------------
IRELAND -- 2.1%
Eircom P.L.C 1,000,000 2,679,256
Elan Corp. P.L.C. ADR* 61,000 2,954,688
------------
5,633,944
------------
ITALY -- 1.3%
ENI S.P.A 600,000 3,479,678
------------
JAPAN -- 23.5%
Asahi Chemical Industry Co., Ltd. 510,000 3,615,260
Dai-Ichi Kangyo Bank, Ltd. 449,000 3,416,256
Daiichi Pharmaceutical Co., Ltd. 230,000 5,847,743
Daito Trust Construction Co., Ltd. 172,800 2,858,182
Daiwa Securities Co., Ltd. 285,000 3,771,213
Dowa Fire & Marine Insurance Co. 785,000 2,107,153
Fujitsu, Ltd. 100,000 3,468,760
Hitachi, Ltd. 353,000 5,104,748
Honda Motor Co., Ltd. 70,000 2,388,435
JGC Corp. 900,000 3,640,780
Kyushu Electric Power Co., Inc. 90 1,301
Marubeni Corp. 1,300,000 4,484,813
Marui Co., Ltd. 130,000 2,494,293
Nihon Unisys, Ltd. 150,000 3,041,072
Nippon Fire & Marine Insurance Co., Ltd. 1,153,000 3,476,387
Nishimatsu Construction Co., Ltd. 467,000 1,845,021
NTT DoCoMo, Inc. 70 1,898,839
Sankyo Co., Ltd. 120,000 2,716,407
Sumitomo Trust & Banking Co., Ltd. 743,000 5,302,051
Toyo Trust & Banking Co., Ltd. 660,000 2,233,238
------------
63,711,952
------------
MALAYSIA -- 1.1%
Technology Resources Industries BHD 1,675,000 1,780,827
United Engineers (Malaysia) BHD 532,000 1,085,023
------------
2,865,850
------------
MEXICO -- 0.9%
Telefonos de Mexico S.A. ADR 44,000 2,513,500
------------
See Notes to Financial Statements.
60
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
NETHERLANDS -- 4.3%
ABN AMRO Holding N.V 125,000 $ 3,074,674
DSM N.V 65,000 2,093,558
European Vinyls Corp. International N.V 184,000 1,675,613
ING Groep N.V 40,615 2,756,463
Koninklijke KPN N.V 46,000 2,065,855
------------
11,666,163
------------
NEW ZEALAND -- 2.3%
Air New Zealand, Ltd.-B 1,525,000 1,557,829
Carter Holt Harvey, Ltd. 1,478,600 1,287,694
Fletcher Challenge Energy, Ltd. 1,035,000 3,386,222
------------
6,231,745
------------
NORWAY -- 1.3%
Odfjell A.S.A.- A 79,000 1,016,676
Petroleum Geo-Services A.S.A.* 150,200 2,574,367
------------
3,591,043
------------
PERU -- 0.2%
Southern Peru Copper Corp., Ltd. 54,700 666,656
------------
PHILIPPINES -- 0.3%
Philippine National Bank* 698,620 913,100
------------
PORTUGAL -- 0.8%
Portugal Telecom S.A 190,000 2,141,871
------------
RUSSIA -- 1.1%
Lukoil Holding ADR 30,000 1,533,600
Rostelecom ADR 100,000 1,362,500
------------
2,896,100
------------
SINGAPORE -- 1.5%
City Developments, Ltd. 480,000 1,860,056
United Overseas Bank, Ltd. 326,064 2,131,039
------------
3,991,095
------------
SLOVAKIA -- 0.1%
Slovakofarma A.S. GDR 157,000 365,025
------------
SLOVENIA -- 0.4%
SKB Banka D.D. GDR 129,500 1,103,988
------------
SOUTH AFRICA -- 0.8%
Old Mutual P.L.C 1,000,000 2,198,940
------------
SPAIN -- 2.9%
Iberdrola S.A 212,774 2,753,498
Repsol S.A 146,906 2,936,148
Telefonica S.A.* 95,752 2,065,203
------------
7,754,849
------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
SWEDEN -- 3.7%
ABB, Ltd. 23,669 $ 2,758,008
Assidoman AB 125,000 1,788,622
AstraZeneca Group P.L.C 75,095 3,510,424
Atlas Copco AB 100,000 1,881,259
------------
9,938,313
------------
SWITZERLAND -- 6.3%
ABB, Ltd. 13,155 1,579,584
Novartis A.G 2,250 3,575,492
Roche Holding A.G 250 2,441,469
Schweizerische Lebensversicherungs
und Rentenanstalt 5,000 2,998,026
Swisscom A.G 10,000 3,474,635
UBS A.G 20,000 2,939,603
------------
17,008,809
------------
TAIWAN -- 0.5%
R.O.C. Taiwan Fund* 170,000 1,476,875
------------
THAILAND -- 1.7%
Advanced Information Service Public Co.,
Ltd.* 200,000 2,488,290
Bangkok Bank Public Co., Ltd.* 1,000,000 1,223,749
Thailand International Fund* 155 899,000
------------
4,611,039
------------
UNITED KINGDOM -- 10.8%
British Airways P.L.C 450,000 2,588,769
British Telecommunications P.L.C 200,000 2,585,741
Cable & Wireless P.L.C 130,844 2,216,568
Corus Group P.L.C 715,000 1,044,553
Marks & Spencer P.L.C 400,000 1,406,413
National Power P.L.C 452,380 2,883,253
Nycomed Amersham P.L.C 310,000 3,078,667
Rolls-Royce P.L.C 846,917 3,006,636
Royal & Sun Alliance Insurance
Group P.L.C 502,936 3,266,384
Royal Bank of Scotland Group P.L.C 131,450 2,200,964
Sainsbury (J.) P.L.C 548,732 2,492,176
Unilever P.L.C 400,000 2,422,240
------------
29,192,364
------------
TOTAL COMMON STOCK
(Cost $244,520,561) 256,479,802
------------
See Notes to Financial Statements.
61
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
U.S. TREASURY OBLIGATIONS -- 4.6%
U.S. Treasury Bills
4.910% 07/20/00 $ 413 $ 411,930
5.120% 07/20/00 409 407,895
5.150% 07/20/00 619 617,318
5.290% 07/20/00 1,821 1,815,916
5.300% 07/20/00 3,149 3,140,192
5.310% 07/20/00 3,808 3,797,328
5.360% 07/20/00 1,183 1,179,653
5.400% 07/20/00 904 901,424
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $12,271,656) 12,271,656
------------
SHARES
------
TEMPORARY INVESTMENTS -- 0.0%
Provident Institutional Funds - TempCash
(Cost $3,376) 3,376 3,376
------------
TOTAL INVESTMENTS -- 99.4%
(Cost $256,795,593) 268,754,834
------------
CURRENCY -- 0.5%
Euro Currency 2 2
Malaysia Ringgit 5,267,250 1,386,148
------------
TOTAL CURRENCY
(Cost $1,386,126) 1,386,150
------------
OTHER ASSETS AND LIABILITIES -- 0.1%
Dividends receivable and other assets 1,670,692
Receivable for securities sold 2,853,254
Receivable for capital stock sold 124,961
Payable for securities purchased (1,811,658)
Payable for capital stock redeemed (2,091,976)
Accrued expenses (355,176)
------------
390,097
------------
VALUE(DAGGER)
-------------
NET ASSETS -- 100.0%
Applicable to 17,517,864 Institutional Shares,
354,183 N Shares and 464.545 A Shares of
beneficial interest outstanding,
$.001 par value (Note 7) $270,531,081
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
SHARE ($265,172,174/17,517,864) $15.14
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
$5,351,884/354,183) $15.11
======
NET ASSET VALUE AND REDEMPTION
PRICE PER A SHARE ($7,023/464.545) $15.12
======
MAXIMUM PUBLIC OFFERING PRICE
PER A SHARE ($15.12/0.945) (NOTE 5) $16.00
======
--------------
(DAGGER)See Note 2a to the Financial Statements.
*Non-income producing security.
ADR -- American Depositary Receipt.
GDR -- Global Depositary Receipt.
See Notes to Financial Statements.
62
<PAGE>
HARRIS INSIGHT FUNDS
EMERGING MARKETS
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 91.1%
ARGENTINA -- 1.3%
Telecom Argentina S.A. ADR 20,000 $ 550,000
-----------
BRAZIL -- 11.3%
Companhia Brasileira de Distribuicao Grupo
Pao de Acucar ADR 15,200 488,300
Companhia Energetica de Minas Gerais
S.A. ADR 23,000 397,921
Companhia Vale do Rio Doce ADR 25,900 731,675
Embratel Participacoes S.A. ADR 26,000 614,250
Gerdau S.A 34,000,000 416,153
Petroleo Brasileiro S.A. ADR 26,900 812,689
Tele Norte Leste Participacoes S.A. ADR 20,526 484,927
Uniao de Bancos Brasileiros S.A. GDR 18,000 517,500
Usinas Siderurgicas de Minas Gerais S.A 88,500 409,643
-----------
4,873,058
-----------
CHILE -- 1.2%
Compania de Telecomunicaciones de Chile
S.A. ADR 27,863 505,017
-----------
CHINA -- 4.0%
Huaneng Power International, Inc. ADR 71,000 945,187
Shanghai Petrochemical Co., Ltd. 5,750,000 781,908
-----------
1,727,095
-----------
CROATIA -- 1.3%
Pliva D.D. GDR 54,000 557,550
-----------
CZECH REPUBLIC -- 1.3%
Komercni Banka A.S. GDR* 83,798 569,826
-----------
GREECE -- 1.0%
Hellenic Telecommunications Organization
(OTE) S.A 17,000 416,512
-----------
HONG KONG -- 5.6%
HSBC Holdings P.L.C 66,409 758,227
Hutchison Whampoa, Ltd. 50,600 636,149
Smartone Telecommunications Holdings, Ltd. 213,000 471,358
Wing Hang Bank, Ltd. 228,000 567,438
-----------
2,433,172
-----------
HUNGARY -- 2.9%
BorsodChem Rt 9,500 294,691
EGIS Rt 11,000 462,260
Magyar Tavkozlesi Rt. ADR 14,200 489,012
-----------
1,245,963
-----------
INDIA -- 5.9%
Bajaj Auto, Ltd. GDR 73,000 667,950
Gujarat Ambuja Cements, Ltd. GDR 135,500 582,650
Larsen & Toubro, Ltd. GDR 50,000 555,625
Mahanagar Telephone Nigam, Ltd. GDR 30,000 305,625
Tata Engineering & Locomotive Co., Ltd. GDR 170,000 463,250
-----------
2,575,100
-----------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
INDONESIA -- 2.1%
PT Indofood Sukses Makmur TBK* 633,000 $ 345,350
PT Indosat ADR 17,000 193,375
PT Semen Gresik (Persero) TBK 415,000 376,962
-----------
915,687
-----------
ISRAEL -- 2.6%
ECI Telecom, Ltd. 20,300 723,187
Partner Communications Co., Ltd. ADR* 43,000 403,125
-----------
1,126,312
-----------
KOREA -- 11.1%
Hyundai Electronics Industries Co., Ltd.* 31,500 621,531
Kookmin Bank GDR 42,513 539,915
Korea Electric Power Corp. ADR 46,000 848,125
Korea Telecom Corp. ADR 15,200 735,300
Pohang Iron & Steel Co., Ltd. ADR 22,700 544,800
Samsung Electronics Co., Ltd. GDR 4,450 872,200
Samsung Fire & Marine Insurance Co., Ltd. 660 18,350
SK Telecom Co., Ltd. ADR 16,886 613,173
-----------
4,793,394
-----------
MALAYSIA -- 7.0%
Commerce Asset Holdings BHD 198,000 573,170
Malayan Banking BHD 116,000 470,115
Malaysian Pacific Industries BHD 45,000 461,852
Road Builder (M) Holdings BHD 341,000 376,903
Technology Resources Industries BHD 695,000 738,910
United Engineers (Malaysia) BHD 190,000 387,508
-----------
3,008,458
-----------
MEXICO -- 10.0%
Cemex S.A. de C.V. ADR 30,531 713,661
Grupo Financiero Banamex Accival S.A. de
C.V. -O* 137,000 584,567
Grupo Iusacell S.A. de C.V. ADR* 30,000 468,750
Grupo Mexico S.A. -B* 177,000 490,908
Grupo Televisa S.A. GDR* 8,600 592,862
Telefonos de Mexico S.A. ADR 9,200 525,550
Tubos de Acero de Mexico S.A. ADR 22,000 305,250
Wal-Mart de Mexico S.A. de C.V. ADR* 27,000 633,636
-----------
4,315,184
-----------
PERU -- 1.4%
Credicorp, Ltd. 47,500 427,500
Southern Peru Copper Corp., Ltd. 15,800 192,562
-----------
620,062
-----------
PHILIPPINES -- 1.3%
Metropolitan Bank & Trust Co. 53,064 247,959
Philippine Long Distance Telephone Co. ADR 18,400 326,600
-----------
574,559
-----------
POLAND -- 2.9%
Stomil Olsztyn S.A 93,500 609,757
Telekomunikacja Polska S.A. GDR 91,000 634,725
-----------
1,244,482
-----------
See Notes to Financial Statements.
63
<PAGE>
HARRIS INSIGHT FUNDS
EMERGING MARKETS
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
RUSSIA -- 4.6%
Lukoil Holding ADR 9,000 $ 460,080
Rostelecom ADR 58,500 797,062
Surgutneftegaz ADR 53,900 718,217
-----------
1,975,359
-----------
SINGAPORE -- 2.8%
City Developments, Ltd. 100,000 387,512
DBS Group Holdings, Ltd. 34,890 447,986
United Overseas Bank, Ltd. 54,912 358,885
-----------
1,194,383
-----------
SLOVAKIA -- 1.0%
Slovakofarma A.S. GDR 124,200 288,765
Slovenske Energeticke Stroja* 18,328 45,345
Slovnaft A.S.* 9,200 109,670
-----------
443,780
-----------
SOUTH AFRICA -- 2.3%
Old Mutual P.L.C 200,000 439,788
Standard Bank Investment Corp., Ltd. 143,500 560,897
-----------
1,000,685
-----------
TAIWAN -- 2.2%
Acer Peripherals, Inc. 174,000 491,509
United Microelectronics Corp.* 168,000 466,379
-----------
957,888
-----------
THAILAND -- 4.0%
Advanced Information Service Public
Co., Ltd.* 36,000 447,892
Bangkok Bank Public Co., Ltd.* 436,000 533,555
Land & House Public Co., Ltd.* 800,000 418,114
Thai Farmers Bank Public Co., Ltd.* 420,000 353,358
-----------
1,752,919
-----------
TOTAL COMMON STOCK
(Cost $34,226,532) 39,376,445
-----------
RIGHTS & WARRANTS -- 0.0%
Cemex S.A. de C.V. ADR* 1,260 3,308
Metropolitan Bank & Trust Co.* 5,306 5,156
-----------
TOTAL RIGHTS & WARRANTS
(Cost $2,205) 8,464
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
----------- -------- ------ -----------
U.S. TREASURY OBLIGATIONS -- 11.1%
U.S. Treasury Bills
4.590% 07/20/00 $ 80 $ 79,806
4.910% 07/20/00 2,430 2,423,703
5.120% 07/20/00 95 94,743
5.150% 07/20/00 247 246,329
5.290% 07/20/00 116 115,676
5.300% 07/20/00 395 393,895
5.500% 07/20/00 387 385,877
5.600% 07/20/00 203 202,400
5.640% 07/20/00 257 256,235
5.650% 07/20/00 585 583,256
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $4,781,920) 4,781,920
-----------
SHARES
------
TEMPORARY INVESTMENTS -- 0.0%
Provident Institutional Funds - TempCash
(Cost $699) 699 699
-----------
TOTAL INVESTMENTS -- 102.2%
(Cost $39,011,356) 44,167,528
-----------
CURRENCY -- 1.7%
Taiwanese Dollar
(Cost $757,323) 23,325,554 757,348
-----------
OTHER ASSETS AND LIABILITIES -- (3.9%)
Dividends receivable and other assets 94,755
Receivable for capital stock sold 34,727
Payable for securities purchased (987,639)
Payable for capital stock redeemed (755,821)
Accrued expenses (66,566)
-----------
(1,680,544)
-----------
NET ASSETS -- 100.0%
Applicable to 4,962,850 Institutional Shares,
46,683 N Shares and 3,832 A Shares of
beneficial interest outstanding,
$.001 par value (Note 7) $43,244,332
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL SHARE
($42,812,994/4,962,850) $8.63
=====
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE ($398,608/46,683) $8.54
=====
NET ASSET VALUE AND REDEMPTION
PRICE PER A SHARE ($32,730/3,832) $8.54
=====
MAXIMUM PUBLIC OFFERING PRICE
PER A SHARE ($8.54/0.945) (NOTE 5) $9.04
=====
---------------------
(DAGGER)See Note 2a to the Financial Statements.
*Non-income producing security.
ADR -- American Depositary Receipt.
GDR -- Global Depositary Receipt.
See Notes to Financial Statements.
64
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY MARKET FUNDS
-------------------------------------------
GOVERNMENT MONEY TAX-EXEMPT
MONEY FUND FUND MONEY FUND
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................................ $14,844,591 $98,860,106 $16,841,607
Dividends ............................................... -- -- --
Foreign taxes withheld .................................. -- -- --
----------- ----------- -----------
Total investment income ............................... 14,844,591 98,860,106 16,841,607
----------- ----------- -----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) ........................ 267,617 1,618,315 448,313
Rule 12b-1 fee (Note 4) ................................. 148,643 532,448 119,525
Shareholder services fee (Note 4) ....................... 371,609 1,331,120 298,814
Commitment fee (Note 9) ................................. 8,739 56,521 15,143
Transfer agency fee (Note 3) ............................ 42,700 177,743 51,233
Administration fee (Note 3) ............................. 214,762 1,391,537 374,840
Custodian fee (Note 3) .................................. 24,716 143,469 42,670
Directors' fees and expenses ............................ 5,253 33,974 9,103
Audit fee ............................................... 7,848 50,756 13,599
Legal fee ............................................... 3,502 22,650 6,068
Amortization of organization
expenses (Note 2f) ................................... -- -- --
Reports to shareholders ................................. 7,673 49,292 13,321
Registration fees ....................................... 13,886 58,922 16,304
Miscellaneous ........................................... 11,872 25,247 7,520
----------- ----------- -----------
Total expenses ........................................ 1,128,820 5,491,994 1,416,453
----------- ----------- -----------
Less fee waivers and expense
reimbursements (Notes 3,4) ........................... (113,040) (732,563) (20,511)
----------- ----------- -----------
Net expenses .......................................... 1,015,780 4,759,431 1,395,942
----------- ----------- -----------
NET INVESTMENT INCOME/(LOSS) .......................... 13,828,811 94,100,675 15,445,665
----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized gain/(loss) from:
Investment transactions ............................... 862 21,546 43
Futures contracts ..................................... -- -- --
Foreign currency transactions ......................... -- -- --
Net change in unrealized
appreciation/(depreciation) on:
Investments ........................................... -- -- --
Futures contracts ..................................... -- -- --
Foreign currency transactions ......................... -- -- --
Increase in amortized market discount ................... -- -- 3,443
----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS .......................................... 862 21,546 3,486
----------- ----------- -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ......................................... $13,829,673 $94,122,221 $15,449,151
=========== =========== ===========
FIXED INCOME FUNDS
----------------------------------------------------------
SHORT/ INTERMEDIATE INTERMEDIATE
INTERMEDIATE BOND GOVERNMENT TAX-EXEMPT
FUND FUND FUND FUND
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................................ $10,761,687 $ 5,456,448 $ 3,028,835 $4,704,011
Dividends ............................................... -- -- -- --
Foreign taxes withheld .................................. -- -- -- --
----------- ----------- ----------- ----------
Total investment income ............................... 10,761,687 5,456,448 3,028,835 4,704,011
----------- ----------- ----------- ----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) ........................ 1,072,768 494,561 294,739 547,505
Rule 12b-1 fee (Note 4) ................................. 175 34 132 --
Shareholder services fee (Note 4) ....................... 4,937 4,802 6,058 921
Commitment fee (Note 9) ................................. 5,421 2,691 1,602 3,227
Transfer agency fee (Note 3) ............................ 26,089 24,915 27,585 8,851
Administration fee (Note 3) ............................. 251,793 129,837 81,166 144,736
Custodian fee (Note 3) .................................. 18,625 16,301 9,477 19,831
Directors' fees and expenses ............................ 6,258 1,617 963 1,940
Audit fee ............................................... 4,868 2,416 1,439 2,898
Legal fee ............................................... 4,172 1,078 642 1,293
Amortization of organization
expenses (Note 2f) .................................... -- 1,993 2,002 1,993
Reports to shareholders ................................. 5,756 2,356 1,396 2,834
Registration fees ....................................... 17,508 14,064 12,248 12,246
Miscellaneous ........................................... 17,280 13,307 9,083 12,241
----------- ----------- ----------- ----------
Total expenses ........................................ 1,435,650 709,972 448,532 760,516
----------- ----------- ----------- ----------
Less fee waivers and expense
reimbursements (Notes 3,4) ............................ (511,022) (248,618) (215,620) (547,505)
----------- ----------- ----------- ----------
Net expenses .......................................... 924,628 461,354 232,912 213,011
----------- ----------- ----------- ----------
NET INVESTMENT INCOME/(LOSS) .......................... 9,837,059 4,995,094 2,795,923 4,491,000
----------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized gain/(loss) from:
Investment transactions ............................... (3,088,067) (2,365,222) (1,071,212) 381,578
Futures contracts ..................................... (141,590) (45,228) 112,293 --
Foreign currency transactions ......................... -- -- -- --
Net change in unrealized
appreciation/(depreciation) on:
Investments ........................................... 3,875,189 3,335,904 1,594,117 2,370,689
Futures contracts ..................................... 781 225,358 49,945 --
Foreign currency transactions ......................... -- -- -- --
Increase in amortized market discount ................... -- -- -- --
----------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS .......................................... 646,313 1,150,812 685,143 2,752,267
----------- ----------- ----------- ----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ......................................... $10,483,372 $ 6,145,906 $ 3,481,066 $7,243,267
=========== =========== =========== ==========
FIXED INCOME FUNDS EQUITY FUNDS
--------------------------- -------------------------------
CONVERTIBLE EQUITY
TAX-EXEMPT SECURITIES EQUITY INCOME
FUND FUND FUND FUND
---------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................................ $3,079,608 $ 448,703 $ 197,584 $ 102,985
Dividends ............................................... -- 521,734 3,118,191 688,953
Foreign taxes withheld .................................. -- -- -- --
---------- ----------- ------------ -----------
Total investment income ............................... 3,079,608 970,437 3,315,775 791,938
---------- ----------- ------------ -----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) ........................ 331,270 185,090 1,886,876 271,182
Rule 12b-1 fee (Note 4) ................................. -- 18 224 658
Shareholder services fee (Note 4) ....................... 1,105 432 22,719 7,358
Commitment fee (Note 9) ................................. 1,952 935 9,540 1,371
Transfer agency fee (Note 3) ............................ 6,073 16,818 49,964 17,447
Administration fee (Note 3) ............................. 88,135 49,942 436,528 70,372
Custodian fee (Note 3) .................................. 12,924 6,799 47,779 7,991
Directors' fees and expenses ............................ 1,174 862 12,735 824
Audit fee ............................................... 1,753 839 8,567 1,231
Legal fee ............................................... 783 575 7,823 549
Amortization of organization
expenses (Note 2f) .................................... 1,993 2,002 -- 1,993
Reports to shareholders ................................. 1,704 3,326 17,404 1,208
Registration fees ....................................... 12,428 11,704 22,320 14,212
Miscellaneous ........................................... 15,689 7,816 18,455 2,794
---------- ----------- ------------ -----------
Total expenses ........................................ 476,983 287,158 2,540,934 399,190
---------- ----------- ------------ -----------
Less fee waivers and expense
reimbursements (Notes 3,4) .............................. (331,270) (43,447) (9,000) (30,889)
---------- ----------- ------------ -----------
Net expenses .......................................... 145,713 243,711 2,531,934 368,301
---------- ----------- ------------ -----------
NET INVESTMENT INCOME/(LOSS) .......................... 2,933,895 726,726 783,841 423,637
---------- ----------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized gain/(loss) from:
Investment transactions ............................... 204,795 6,394,044 55,520,392 1,592,518
Futures contracts ..................................... -- -- -- --
Foreign currency transactions ......................... -- -- -- --
Net change in unrealized
appreciation/(depreciation) on:
Investments ........................................... 2,297,265 (6,657,968) (33,719,140) (6,583,613)
Futures contracts ..................................... -- -- -- --
Foreign currency transactions ......................... -- -- -- --
Increase in amortized market discount ................... -- -- -- --
---------- ----------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS .......................................... 2,502,060 (263,924) 21,801,252 (4,991,095)
---------- ----------- ------------ -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ......................................... $5,435,955 $ 462,802 $ 22,585,093 $(4,567,458)
========== =========== ============ ===========
EQUITY FUNDS
----------------------------------------------------------------
SMALL-CAP SMALL-CAP
GROWTH OPPORTUNITY VALUE INDEX
FUND FUND FUND FUND
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................................ $ 159,198 $ 572,148 $ 157,465 $ 637,456
Dividends ............................................... 661,926 611,209 420,793 3,157,219
Foreign taxes withheld .................................. -- -- -- --
----------- ------------ ----------- ------------
Total investment income ............................... 821,124 1,183,357 578,258 3,794,675
----------- ------------ ----------- ------------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) ........................ 867,878 2,328,003 424,895 710,718
Rule 12b-1 fee (Note 4) ................................. 1,006 74 19 --
Shareholder services fee (Note 4) ....................... 9,152 11,902 833 31,079
Commitment fee (Note 9) ................................. 3,412 8,229 1,881 10,060
Transfer agency fee (Note 3) ............................ 27,353 33,482 17,388 41,939
Administration fee (Note 3) ............................. 161,019 376,058 93,354 448,014
Custodian fee (Note 3) .................................. 16,168 34,560 10,029 39,358
Directors' fees and expenses ............................ 2,051 4,947 1,130 6,047
Audit fee ............................................... 3,064 7,390 1,689 9,034
Legal fee ............................................... 1,367 3,298 754 4,031
Amortization of organization
expenses (Note 2f) .................................... 1,993 1,993 2,002 1,993
Reports to shareholders ................................. 3,016 7,284 3,662 8,901
Registration fees ....................................... 12,606 13,152 12,204 11,232
Miscellaneous ........................................... 6,522 10,680 1,978 17,307
----------- ------------ ----------- ------------
Total expenses ........................................ 1,116,607 2,841,052 571,818 1,339,713
----------- ------------ ----------- ------------
Less fee waivers and expense
reimbursements (Notes 3,4) ............................ (45,710) (35,421) (45,158) (29,341)
----------- ------------ ----------- ------------
Net expenses .......................................... 1,070,897 2,805,631 526,660 1,310,372
----------- ------------ ----------- ------------
NET INVESTMENT INCOME/(LOSS) .......................... (249,773) (1,622,274) 51,598 2,484,303
----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized gain/(loss) from:
Investment transactions ............................... 9,767,807 75,277,609 11,457,513 9,413,052
Futures contracts ..................................... -- -- -- 1,058,545
Foreign currency transactions ......................... -- -- -- --
Net change in unrealized
appreciation/(depreciation) on:
Investments ........................................... (7,512,510) (50,866,027) (5,723,911) (14,882,504)
Futures contracts ..................................... -- -- -- (1,135,138)
Foreign currency transactions ......................... -- -- -- --
Increase in amortized market discount ................... -- -- -- --
----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS .......................................... 2,255,297 24,411,582 5,733,602 (5,546,045)
----------- ------------ ----------- ------------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ......................................... $ 2,005,524 $ 22,789,308 $ 5,785,200 $ (3,061,742)
=========== ============ =========== ============
EQUITY FUNDS
---------------------------------------------
EMERGING
BALANCED INTERNATIONAL MARKETS
FUND FUND FUND
--------- ------------ -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................................ $ 270,335 $ 430,040 $ 85,966
Dividends ............................................... 51,288 3,681,200 517,680
Foreign taxes withheld .................................. -- (344,568) (23,139)
--------- ------------ -----------
Total investment income ............................... 321,623 3,766,672 580,507
--------- ------------ -----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) ........................ 51,791 1,403,173 264,939
Rule 12b-1 fee (Note 4) ................................. 114 8 37
Shareholder services fee (Note 4) ....................... 2,557 3,215 436
Commitment fee (Note 9) ................................. 306 4,728 749
Transfer agency fee (Note 3) ............................ 22,406 27,807 11,270
Administration fee (Note 3) ............................. 23,381 230,150 43,522
Custodian fee (Note 3) .................................. 17,675 100,030 17,966
Directors' fees and expenses ............................ 184 3,842 450
Audit fee ............................................... 274 4,245 673
Legal fee ............................................... 123 3,394 300
Amortization of organization
expenses (Note 2f) .................................... 2,002 1,993 --
Reports to shareholders ................................. 268 8,174 662
Registration fees ....................................... 12,242 15,108 11,354
Miscellaneous ........................................... 8,622 19,593 7,590
--------- ------------ -----------
Total expenses ........................................ 141,945 1,825,460 359,948
--------- ------------ -----------
Less fee waivers and expense
reimbursements (Notes 3,4) ............................ (63,313) (9,000) (9,750)
--------- ------------ -----------
Net expenses .......................................... 78,632 1,816,460 350,198
--------- ------------ -----------
NET INVESTMENT INCOME/(LOSS) .......................... 242,991 1,950,212 230,309
--------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 6):
Net realized gain/(loss) from:
Investment transactions ............................... 819,095 2,724,384 929,945
Futures contracts ..................................... (20,844) -- --
Foreign currency transactions ......................... -- (686,337) (53,647)
Net change in unrealized
appreciation/(depreciation) on:
Investments ........................................... (363,902) (17,038,187)(1) (6,040,036)(1)
Futures contracts ..................................... 17,143 -- --
Foreign currency transactions ......................... -- 7,065 (525)
Increase in amortized market discount ................... -- -- --
--------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS .......................................... 451,492 (14,993,075) (5,164,263)
--------- ------------ -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ......................................... $ 694,483 $(13,042,863) $(4,933,954)
========= ============ ===========
<FN>
(1) Net of estimated deferred capital gains taxes of $49,309 for International
Fund and $41,405 for Emerging Markets Fund.
</FN>
</TABLE>
See Notes to Financial Statements.
66 and 67
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<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) ...... $ 13,828,811 $ 94,100,675 $ 15,445,665 $ 9,837,059 $ 4,995,094
Net realized gain/(loss) on
investment transactions,
futures contracts and foreign
currency transactions ........... 862 21,546 43 (3,229,657) (2,410,450)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions .................... -- -- -- 3,875,970 3,561,262
Increase in amortized market
discount ........................ -- -- 3,443 -- --
------------ -------------- ------------ ------------ ------------
Increase/(decrease) in net
assets from operations .......... 13,829,673 94,122,221 15,449,151 10,483,372 6,145,906
------------ -------------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............ (5,753,866) (63,934,496) (11,442,467) (9,711,492) (4,872,959)
N Shares ........................ (8,074,945) (30,166,159) (4,003,198) (121,247) (121,280)
A Shares ........................ -- -- -- (4,320) (855)
------------ -------------- ------------ ------------ ------------
Total distributions from net
investment income ............... (13,828,811) (94,100,655) (15,445,665) (9,837,059) (4,995,094)
------------ -------------- ------------ ------------ ------------
Net realized gains on investments :
Institutional Shares ............ -- -- -- -- --
N Shares ........................ -- -- -- -- --
A Shares ........................ -- -- -- -- --
------------ -------------- ------------ ------------ ------------
Total distributions from net
realized gains .................. -- -- -- -- --
------------ -------------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ 7,620,572 (262,060,694) 141,449,581 5,658,041 (14,653,260)
N Shares ........................ (3,971,383) 35,075,479 (36,787,957) (3,803,568) (778,249)
A Shares ........................ -- -- -- 4,321 2,287
------------ -------------- ------------ ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions .................... 3,649,189 (226,985,215) 104,661,624 1,858,794 (15,429,222)
------------ -------------- ------------ ------------ ------------
Total increase/(decrease) in
net assets ...................... 3,650,051 (226,963,649) 104,665,110 2,505,107 (14,278,410)
NET ASSETS:
Beginning of period ............... 500,171,647 3,137,951,088 756,118,783 305,641,509 162,068,284
------------ -------------- ------------ ------------ ------------
End of period ..................... $503,821,698 $2,910,987,439 $860,783,893 $308,146,616 $147,789,874
============ ============== ============ ============ ============
FIXED INCOME FUNDS
--------------------------------------------------------------
INTERMEDIATE INTERMEDIATE CONVERTIBLE
GOVERNMENT TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND FUND
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/(loss) ...... $ 2,795,923 $ 4,491,000 $ 2,933,895 $ 726,726
Net realized gain/(loss) on
investment transactions,
futures contracts and foreign
currency transactions ........... (958,919) 381,578 204,795 6,394,044
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions .................... 1,644,062 2,370,689 2,297,265 (6,657,968)
Increase in amortized market
discount ........................ -- -- -- --
------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from operations .......... 3,481,066 7,243,267 5,435,955 462,802
------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............ (2,648,954) (4,474,128) (2,911,369) (708,372)
N Shares ........................ (143,844) (16,872) (22,526) (4,185)
A Shares ........................ (3,125) -- -- (257)
------------ ------------ ------------ -----------
Total distributions from net
investment income ............... (2,795,923) (4,491,000) (2,933,895) (712,814)
------------ ------------ ------------ -----------
Net realized gains on investments :
Institutional Shares ............ -- -- -- --
N Shares ........................ -- -- -- --
A Shares ........................ -- -- -- --
------------ ------------ ------------ -----------
Total distributions from net
realized gains .................. -- -- -- --
------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ (21,593,110) 5,757,737 (28,317,149) 699,946
N Shares ........................ (167,777) (2,198,155) (275,340) (24,013)
A Shares ........................ (187,376) -- -- 20,520
------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions .................... (21,948,263) 3,559,582 (28,592,489) 696,453
------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets ...................... (21,263,120) 6,311,849 (26,090,429) 446,441
NET ASSETS:
Beginning of period ............... 99,461,186 180,555,548 127,135,880 52,475,165
------------ ------------ ------------ -----------
End of period ..................... $ 78,198,066 $186,867,397 $101,045,451 $52,921,606
============ ============ ============ ===========
EQUITY FUNDS
-----------------------------------------------------------------------------------------
EQUITY SMALL-CAP SMALL-CAP
EQUITY INCOME GROWTH OPPORTUNITY VALUE
FUND FUND FUND FUND FUND
------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/(loss) ...... $ 783,841 $ 423,637 $ (249,773) $ (1,622,274) $ 51,598
Net realized gain/(loss) on
investment transactions,
futures contracts and foreign
currency transactions ........... 55,520,392 1,592,518 9,767,807 75,277,609 11,457,513
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions .................... (33,719,140) (6,583,613) (7,512,510) (50,866,027) (5,723,911)
Increase in amortized market
discount ........................ -- -- -- -- --
------------- ------------ ------------ ------------ ------------
Increase/(decrease) in net
assets from operations .......... 22,585,093 (4,567,458) 2,005,524 22,789,308 5,785,200
------------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............ (862,508) (387,587) -- -- --
N Shares ........................ (5,923) (26,035) -- -- --
A Shares ........................ (69) (2,494) -- -- --
------------- ------------ ------------ ------------ ------------
Total distributions from net
investment income ............... (868,500) (416,116) -- -- --
------------- ------------ ------------ ------------ ------------
Net realized gains on investments :
Institutional Shares ............ (26,305,820) (576,622) (1,895,164) (26,426,291) (5,233,599)
N Shares ........................ (968,392) (50,194) (74,732) (518,394) (37,062)
A Shares ........................ (9,980) (5,079) (10,166) (3,817) (907)
------------- ------------ ------------ ------------ ------------
Total distributions from net
realized gains .................. (27,284,192) (631,895) (1,980,062) (26,948,502) (5,271,568)
------------- ------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ (96,424,554) (7,461,553) 1,716,542 55,666,553 (9,372,953)
N Shares ........................ (1,613,931) 884,960 858,303 3,258,287 (51,624)
A Shares ........................ 27,715 194,994 255,501 43,200 7,049
------------- ------------ ------------ ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions .................... (98,010,770) (6,381,599) 2,830,346 58,968,040 (9,417,528)
------------- ------------ ------------ ------------ ------------
Total increase/(decrease) in
net assets ...................... (103,578,369) (11,997,068) 2,855,808 54,808,846 (8,903,896)
NET ASSETS:
Beginning of period ............... 599,600,247 85,012,041 190,793,074 438,496,488 116,298,546
------------- ------------ ------------ ------------ ------------
End of period ..................... $ 496,021,878 $ 73,014,973 $193,648,882 $493,305,334 $107,394,650
============= ============ ============ ============ ============
EQUITY FUNDS
------------------------------------------------------------------
EMERGING
INDEX BALANCED INTERNATIONAL MARKETS
FUND FUND FUND FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/(loss) ...... $ 2,484,303 $ 242,991 $ 1,950,212 $ 230,309
Net realized gain/(loss) on
investment transactions,
futures contracts and foreign
currency transactions ........... 10,471,597 798,251 2,038,047 876,298
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions .................... (16,017,642) (346,759) (17,031,122)(1) (6,040,561)(1)
Increase in amortized market
discount ........................ -- -- -- --
------------ ----------- ------------ -----------
Increase/(decrease) in net
assets from operations .......... (3,061,742) 694,483 (13,042,863) (4,933,954)
------------ ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............ (2,366,724) (213,656) -- --
N Shares ........................ (79,989) (27,993) -- --
A Shares ........................ -- (1,550) -- --
------------ ----------- ------------ -----------
Total distributions from net
investment income ............... (2,446,713) (243,199) -- --
------------ ----------- ------------ -----------
Net realized gains on investments :
Institutional Shares ............ (1,996,384) -- -- --
N Shares ........................ (93,198) -- -- --
A Shares ........................ -- -- -- --
------------ ----------- ------------ -----------
Total distributions from net
realized gains .................. (2,089,582) -- -- --
------------ ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ 10,202,993 (5,642,883) 5,289,771 9,553,531
N Shares ........................ 1,941,501 (452,737) 2,860,374 110,765
A Shares ........................ -- 45,255 1,890 31,970
------------ ----------- ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions .................... 12,144,494 (6,050,365) 8,152,035 9,696,266
------------ ----------- ------------ -----------
Total increase/(decrease) in
net assets ...................... 4,546,457 (5,599,081) (4,890,828) 4,762,312
NET ASSETS:
Beginning of period ............... 573,751,799 24,266,247 275,421,909 38,482,020
------------ ----------- ------------ -----------
End of period ..................... $578,298,256 $18,667,166 $270,531,081 $43,244,332
============ =========== ============ ===========
<FN>
(1) Net of estimated deferred capital gains taxes of $49,309 for International
Fund and $41,405 for Emerging Markets Fund.
</FN>
</TABLE>
See Notes to Financial Statements.
68 and 69
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 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) .......................... $ 23,820,274 $ 133,152,666 $ 22,795,423 $ 19,458,065 $ 11,391,753
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions .................... (83,237) (14,571) (8,480) (3,764,954) (4,132,508)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions .................... -- -- -- (13,100,580) (8,935,669)
------------ -------------- ------------ ------------ ------------
Increase/(decrease) in net
assets from operations .......... 23,737,037 133,138,095 22,786,943 2,592,531 (1,676,424)
------------ -------------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............ (10,862,051) (87,629,089) (16,650,333) (19,057,130) (11,182,941)
N Shares ........................ (12,960,971) (45,541,649) (6,171,544) (397,304) (207,777)
A Shares ........................ -- -- -- (3,631) (1,035)
------------ -------------- ------------ ------------ ------------
Total distributions from net
investment income ................. (23,823,022) (133,170,738) (22,821,877) (19,458,065) (11,391,753)
------------ -------------- ------------ ------------ ------------
Net realized gains on investments :
Institutional Shares ............ -- -- -- (493,108) (153,120)
N Shares ........................ -- -- -- (11,729) (3,060)
A Shares ........................ -- -- -- -- (14)
------------ -------------- ------------ ------------ ------------
Total distributions from net
realized gains .................. -- -- -- (504,837) (156,194)
------------ -------------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ 48,268,284 692,887,146 (90,740,792) (22,064,925) (13,276,264)
N Shares ........................ 41,109,261 175,713,617 36,026,633 3,261,084 2,143,961
A Shares ........................ -- -- -- 143,020 27,521
------------ -------------- ------------ ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions .................... 89,377,545 868,600,763 (54,714,159) (18,660,821) (11,104,782)
------------ -------------- ------------ ------------ ------------
Total increase/(decrease) in
net assets ...................... 89,291,560 868,568,120 (54,749,093) (36,031,192) (24,329,153)
NET ASSETS:
Beginning of period ............... 410,880,087 2,269,382,968 810,867,876 341,672,701 186,397,437
------------ -------------- ------------ ------------ ------------
End of period ..................... $500,171,647 $3,137,951,088 $756,118,783 $305,641,509 $162,068,284
============ ============== ============ ============ ============
FIXED INCOME FUNDS
---------------------------------------------------------------
INTERMEDIATE INTERMEDIATE CONVERTIBLE
GOVERNMENT TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND FUND
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) .......................... $ 5,880,869 $ 8,305,860 $ 7,061,098 $ 1,786,157
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions .................... (1,059,021) (3,466,285) (3,563,951) (400,310)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions .................... (5,719,553) (5,640,837) (8,423,471) 12,151,002
------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from operations .......... (897,705) (801,262) (4,926,324) 13,536,849
------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............ (5,651,817) (8,209,955) (7,009,225) (1,766,281)
N Shares ........................ (221,857) (95,905) (52,810) (13,203)
A Shares ........................ (7,633) -- -- --
------------ ------------ ------------ -----------
Total distributions from net
investment income ................. (5,881,307) (8,305,860) (7,062,035) (1,779,484)
------------ ------------ ------------ -----------
Net realized gains on investments :
Institutional Shares ............ -- (250,099) -- (235,013)
N Shares ........................ -- (3,976) -- (1,676)
A Shares ........................ -- -- -- --
------------ ------------ ------------ -----------
Total distributions from net
realized gains .................. -- (254,075) -- (236,689)
------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ (2,279,998) (39,066,468) (31,141,291) (8,730,723)
N Shares ........................ 2,990,637 1,996,099 296,042 (120,046)
A Shares ........................ 241,243 -- -- --
------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions .................... 951,882 (37,070,369) (30,845,249) (8,850,769)
------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets ...................... (5,827,130) (46,431,566) (42,833,608) 2,669,907
NET ASSETS:
Beginning of period ............... 105,288,316 226,987,114 169,969,488 49,805,258
------------ ------------ ------------ -----------
End of period ..................... $ 99,461,186 $180,555,548 $127,135,880 $52,475,165
============ ============ ============ ===========
EQUITY FUNDS
-----------------------------------------------------------------------------------
EQUITY SMALL-CAP SMALL-CAP
EQUITY INCOME GROWTH OPPORTUNITY VALUE
FUND FUND FUND FUND FUND
------------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) .......................... $ 2,155,597 $ 626,900 $ (298,699) $ (1,662,790) $ 480,572
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions .................... 84,682,656 2,069,010 8,358,292 44,920,374 5,694,453
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions .................... (102,737,691) 4,671,318 18,642,080 83,019,598 (7,254,403)
------------- ----------- ------------ ------------ ------------
Increase/(decrease) in net
assets from operations .......... (15,899,438) 7,367,228 26,701,673 126,277,182 (1,079,378)
------------- ----------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............ (2,195,341) (611,218) -- -- (471,898)
N Shares ........................ (19,493) (32,230) -- -- (1,307)
A Shares ........................ (8) (1,496) -- -- (19)
------------- ----------- ------------ ------------ ------------
Total distributions from net
investment income ................. (2,214,842) (644,944) -- -- (473,224)
------------- ----------- ------------ ------------ ------------
Net realized gains on investments :
Institutional Shares ............ (84,435,865) (2,151,661) (8,366,532) (13,372,427) (1,769,690)
N Shares ........................ (2,834,040) (150,109) (384,693) (193,389) (9,205)
A Shares ........................ (17,669) (9,980) (27,793) (841) (50)
------------- ----------- ------------ ------------ ------------
Total distributions from net
realized gains .................. (87,287,574) (2,311,750) (8,779,018) (13,566,657) (1,778,945)
------------- ----------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ (159,292,310) 13,099,734 20,439,681 24,179,345 (24,643,797)
N Shares ........................ (6,053,049) 1,138,378 (665,223) (165,827) 96,785
A Shares ........................ 178,647 431,881 676,160 21,336 11,396
------------- ----------- ------------ ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions .................... (165,166,712) 14,669,993 20,450,618 24,034,854 (24,535,616)
------------- ----------- ------------ ------------ ------------
Total increase/(decrease) in
net assets ...................... (270,568,566) 19,080,527 38,373,273 136,745,379 (27,867,163)
NET ASSETS:
Beginning of period ............... 870,168,813 65,931,514 152,419,801 301,751,109 144,165,709
------------- ----------- ------------ ------------ ------------
End of period ..................... $ 599,600,247 $85,012,041 $190,793,074 $438,496,488 $116,298,546
============= =========== ============ ============ ============
EQUITY FUNDS
--------------------------------------------------------------
EMERGING
INDEX BALANCED INTERNATIONAL MARKETS
FUND FUND FUND FUND
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) .......................... $ 4,791,352 $ 1,354,612 $ 1,985,319 $ (46,989)
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions .................... 8,701,316 1,876,407 8,166,78 (1,361,511)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions .................... 74,849,383 (5,263,172) 47,140,345 15,424,202
------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from operations .......... 88,342,051 (2,032,153) 57,292,449 14,015,702
------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............ (4,643,060 (1,278,030) (1,446,544) (61,668)
N Shares ........................ (157,779) (70,678) (3,585) (483)
A Shares ........................ -- (1,872) (8) (9)
------------ ------------ ------------ -----------
Total distributions from net
investment income ................. (4,800,839) (1,350,580) (1,450,137) (62,160)
------------ ------------ ------------ -----------
Net realized gains on investments :
Institutional Shares ............ (8,964,827) (2,411,834) -- --
N Shares ........................ (394,221) (240,444) -- --
A Shares ........................ -- (8,424) -- --
------------ ------------ ------------ -----------
Total distributions from net
realized gains .................. (9,359,048) (2,660,702) -- --
------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ 116,030,603 (28,484,146) 23,375,187 5,215,893
N Shares ........................ 7,244,370 341,828 95,327 174,568
A Shares ........................ -- 96,829 4,762 4,289
------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions .................... 123,274,973 (28,045,489) 23,475,276 5,394,750
------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets ...................... 197,457,137 (34,088,924) 79,317,588 19,348,292
NET ASSETS:
Beginning of period ............... 376,294,662 58,355,171 196,104,321 19,133,728
------------ ------------ ------------ -----------
End of period ..................... $573,751,799 $ 24,266,247 $275,421,909 $38,482,020
============ ============ ============ ===========
</TABLE>
See Notes to Financial Statements.
70 and 71
<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
-------------------------------- ------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
06/30/00 12/31/99 06/30/00 12/31/99
------------- --------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INSTITUTIONAL SHARES:
Sold .............................. $ 580,197,960 $ 865,386,013 $ 11,089,585,316 $ 12,256,892,700
Issued as reinvestment of dividends 335,617 684,117 8,235,373 14,725,672
Redeemed .......................... (572,913,005) (817,801,846) (11,359,881,383) (11,578,731,226)
------------- --------------- ---------------- ----------------
Net increase/(decrease) ........... $ 7,620,572 $ 48,268,284 (262,060,694) $ 692,887,146
============= =============== ================ ================
N SHARES :
Sold .............................. $ 622,112,498 $ 1,547,547,730 $ 2,105,126,207 $ 3,989,450,052
Issued as reinvestment of dividends 5,682,745 8,807,175 26,190,070 37,745,246
Redeemed .......................... (631,766,626) (1,515,245,644) (2,096,240,798) (3,851,481,681)
------------- --------------- ---------------- ----------------
Net increase/(decrease) ........... $ (3,971,383) $ 41,109,261 $ 35,075,479 $ 175,713,617
============= =============== ================ ================
MONEY MARKET FUNDS
-----------------------------
TAX-EXEMPT MONEY FUND
-----------------------------
SIX MONTHS YEAR
ENDED ENDED
06/30/00 12/31/99
------------ -------------
(UNAUDITED)
<S> <C> <C>
INSTITUTIONAL SHARES:
Sold .............................. $569,217,892 $ 864,542,353
Issued as reinvestment of dividends 6,377 319,324
Redeemed .......................... (427,774,688) (955,602,469)
------------ -------------
Net increase/(decrease) ........... $141,449,581 $ (90,740,792)
============ =============
N SHARES :
Sold .............................. $316,595,212 $ 488,216,432
Issued as reinvestment of dividends 3,224,608 4,762,800
Redeemed .......................... (356,607,777) (456,952,599)
------------ -------------
Net increase/(decrease) ........... $(36,787,957) $ 36,026,633
============ =============
</TABLE>
See Notes to Financial Statements.
72
<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
06/30/00 12/31/99 06/30/00 12/31/99 06/30/00 12/31/99
------------ ------------- ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
------
INSTITUTIONAL SHARES:
Sold .............................. $ 58,329,811 $ 105,385,876 $ 31,506,870 $ 64,959,480 $ 5,819,328 $ 18,530,922
Issued as reinvestment of dividends 1,356,196 2,903,918 2,138,503 4,806,720 2,397,379 5,031,977
Redeemed .......................... (54,027,966) (130,354,719) (48,298,633) (83,042,464) (29,809,817) (25,842,897)
------------ ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) ........... $ 5,658,041 $ (22,064,925) $(14,653,260) $(13,276,264) $(21,593,110) $ (2,279,998)
============ ============= ============ ============ ============ ============
N SHARES:
Sold .............................. $ 625,225 $ 8,556,052 $ 355,935 $ 3,099,969 $ 485,615 $ 3,886,237
Issued as reinvestment of dividends 72,221 306,482 100,663 154,988 135,878 210,329
Redeemed .......................... (4,501,014) (5,601,450) (1,234,847) (1,110,996) (789,270) (1,105,929)
------------ ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) ........... $ (3,803,568) $ 3,261,084 $ (778,249) $ 2,143,961 $ (167,777) $ 2,990,637
============ ============= ============ ============ ============ ============
A SHARES:
Sold .............................. $ -- $ 139,390 $ 1,506 $ 26,470 $ 1,082 $ 262,481
Issued as reinvestment of dividends 4,321 3,630 781 1,051 3,005 7,626
Redeemed .......................... -- -- -- -- (191,463) (28,864)
------------ ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) ........... $ 4,321 $ 143,020 $ 2,287 $ 27,521 $ (187,376) $ 241,243
============ ============= ============ ============ ============ ============
SHARES
------
INSTITUTIONAL SHARES:
Sold .............................. 5,996,653 10,494,238 3,319,966 6,585,586 374,170 1,154,655
Issued as reinvestment of dividends 139,437 290,879 224,927 489,802 153,767 315,199
Redeemed .......................... (5,554,461) (13,008,841) (5,087,705) (8,503,663) (1,917,944) (1,617,742)
------------ ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) ........... 581,629 (2,223,724) (1,542,812) (1,428,275) (1,390,007) (147,888)
============ ============= ============ ============ ============ ============
N SHARES:
Sold .............................. 64,255 840,411 37,206 315,444 31,016 241,774
Issued as reinvestment of dividends 7,428 30,760 10,590 15,864 8,715 13,244
Redeemed .......................... (461,518) (553,334) (130,486) (113,639) (50,659) (70,131)
------------ ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) ........... (389,835) 317,837 (82,690) 217,669 (10,928) 184,887
============ ============= ============ ============ ============ ============
A SHARES:
Sold .............................. -- 13,925 159 2,656 69 16,187
Issued as reinvestment of dividends 444 369 82 108 194 482
Redeemed .......................... -- -- -- -- (12,312) (1,775)
------------ ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) ........... 444 14,294 241 2,764 (12,049) 14,894
============ ============= ============ ============ ============ ============
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
06/30/00 12/31/99 06/30/00 12/31/99 06/30/00 12/31/99
------------ ------------ ------------ ------------ ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
------
INSTITUTIONAL SHARES:
Sold .............................. $ 27,546,411 $ 42,346,727 $ 5,107,987 $ 22,713,997 $ 5,112,155 $ 3,262,520
Issued as reinvestment of dividends 24,745 118,955 25,419 82,743 704,066 1,990,659
Redeemed .......................... (21,813,419) (81,532,150) (33,450,555) (53,938,031) (5,116,275) (13,983,902)
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ........... $ 5,757,737 $(39,066,468) $(28,317,149) $(31,141,291) $ 699,946 $ (8,730,723)
============ ============ ============ ============ =========== ============
N SHARES:
Sold .............................. $ 213,243 $ 4,586,798 $ 939,202 $ 5,754,104 $ 19,604 $ 35,761
Issued as reinvestment of dividends 5,077 78,895 9,549 24,225 3,604 12,962
Redeemed .......................... (2,416,475) (2,669,594) (1,224,091) (5,482,287) (47,221) (168,769)
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ........... $ (2,198,155) $ 1,996,099 $ (275,340) $ 296,042 $ (24,013) $ (120,046)
============ ============ ============ ============ =========== ============
A SHARES:
Sold .............................. $ -- $ -- $ -- $ -- $ 22,263 $ --
Issued as reinvestment of dividends -- -- -- -- 257 --
Redeemed .......................... -- -- -- -- (2,000) --
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ........... $ -- $ -- $ -- $ -- $ 20,520 $ --
============ ============ ============ ============ =========== ============
SHARES
------
INSTITUTIONAL SHARES:
Sold .............................. 2,697,425 4,051,909 527,441 2,281,730 167,902 125,821
Issued as reinvestment of dividends 2,414 11,378 2,619 8,248 22,224 76,721
Redeemed .......................... (2,130,787) (7,801,039) (3,467,341) (5,468,897) (166,981) (542,932)
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ........... 569,052 (3,737,752) (2,937,281) (3,178,919) 23,145 (340,390)
============ ============ ============ ============ =========== ============
N SHARES:
Sold .............................. 20,915 428,223 97,448 576,997 687 1,402
Issued as reinvestment of dividends 496 7,591 985 2,426 114 501
Redeemed .......................... (236,824) (251,628) (126,333) (551,790) (1,544) (6,573)
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ........... (215,413) 184,186 (27,900) 27,633 (743) (4,670)
============ ============ ============ ============ =========== ============
A SHARES:
Sold .............................. -- -- -- -- 706 --
Issued as reinvestment of dividends -- -- -- -- 8 --
Redeemed .......................... -- -- -- -- (66) --
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease) ........... -- -- -- -- 648 --
============ ============ ============ ============ =========== ============
</TABLE>
See Notes to Financial Statements.
74 and 75
<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
06/30/00 12/31/99 06/30/00 12/31/99 06/30/00 12/31/99
------------- ------------- ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
AMOUNT
------
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL SHARES:
Sold .................... $ 28,378,811 $ 48,316,783 $ 7,647,489 $ 23,857,170 $ 24,332,336 $ 38,943,631
Issued as reinvestment of
dividends ............. 12,589,480 38,574,880 306,844 814,829 849,049 3,697,366
Redeemed ................ (137,392,845) (246,183,973) (15,415,886) (11,572,265) (23,464,843) (22,201,316)
------------- ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) . $ (96,424,554) $(159,292,310) $ (7,461,553) $ 13,099,734 $ 1,716,542 $ 20,439,681
============= ============= ============ ============ ============ ============
N SHARES:
Sold .................... $ 2,610,879 $ 21,921,264 $ 3,381,973 $ 2,771,617 $ 7,838,936 $ 14,436,428
Issued as reinvestment of
dividends ............. 771,153 2,232,264 72,814 170,959 59,793 316,046
Redeemed ................ (4,995,963) (30,206,577) (2,569,827) (1,804,198) (7,040,426) (15,417,697)
------------- ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) . $ (1,613,931) $ (6,053,049) $ 884,960 $ 1,138,378 $ 858,303 $ (665,223)
============= ============= ============ ============ ============ ============
A SHARES:
Sold .................... $ 41,892 $ 162,053 $ 232,699 $ 447,418 $ 319,413 $ 717,238
Issued as reinvestment of
dividends ............. 10,049 17,677 6,030 11,475 10,166 27,793
Redeemed ................ (24,226) (1,083) (43,735) (27,012) (74,078) (68,871)
------------- ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) . $ 27,715 $ 178,647 $ 194,994 $ 431,881 $ 255,501 $ 676,160
============= ============= ============ ============ ============ ============
-------------------------------------------------------------------------------------------------------------------------------
SHARES
------
INSTITUTIONAL SHARES:
Sold .................... 1,933,691 2,945,799 391,663 1,204,980 848,819 1,417,164
Issued as reinvestment of
dividends ............. 858,793 2,574,097 15,734 40,558 29,298 132,021
Redeemed ................ (9,534,829) (15,292,627) (798,274) (579,472) (813,759) (806,506)
------------- ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) . (6,742,345) (9,772,731) (390,877) 666,066 64,358 742,679
============= ============= ============ ============ ============ ============
N SHARES:
Sold .................... 169,621 1,300,798 170,747 140,129 271,901 532,220
Issued as reinvestment of
dividends ............. 52,621 148,536 3,729 8,519 2,078 11,327
Redeemed ................ (334,618) (1,810,166) (130,748) (91,308) (245,702) (566,934)
------------- ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) . (112,376) (360,832) 43,728 57,340 28,277 (23,387)
============= ============= ============ ============ ============ ============
A SHARES:
Sold .................... 2,964 9,901 11,789 22,183 11,078 25,945
Issued as reinvestment of
dividends ............. 686 1,213 308 574 353 1,001
Redeemed ................ (1,718) (70) (2,332) (1,337) (2,624) (2,440)
------------- ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) . 1,932 11,044 9,765 21,420 8,807 24,506
============= ============= ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-------------------------------------------------------------------------------------------------
SMALL-CAP SMALL-CAP
OPPORTUNITY VALUE INDEX
FUND FUND FUND
------------------------------ ---------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/00 12/31/99 06/30/00 12/31/99 06/30/00 12/31/99
------------- ------------- ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
AMOUNT
------
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL SHARES:
Sold .................... $ 209,750,007 $ 140,040,589 $ 7,242,232 $ 18,132,377 $ 65,599,812 $190,164,077
Issued as reinvestment of
dividends ............. 15,816,180 7,635,715 4,682,382 1,787,196 2,485,167 8,488,851
Redeemed ................ (169,899,634) (123,496,959) (21,297,567) (44,563,370) (57,881,986) (82,622,325)
------------- ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) . $ 55,666,553 $ 24,179,345 $ (9,372,953) $(24,643,797) $ 10,202,993 $116,030,603
============= ============= ============ ============ ============ ============
N SHARES:
Sold .................... $ 51,028,636 $ 27,102,875 $ 1,373,843 $ 2,269,782 $ 6,017,898 $ 12,716,120
Issued as reinvestment of
dividends ............. 415,327 113,642 36,811 10,176 149,823 469,975
Redeemed ................ (48,185,676) (27,382,344) (1,462,278) (2,183,173) (4,226,220) (5,941,725)
------------- ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) . $ 3,258,287 $ (165,827) $ (51,624) $ 96,785 $ 1,941,501 $ 7,244,370
============= ============= ============ ============ ============ ============
A SHARES:
Sold .................... $ 46,350 $ 28,467 $ 6,142 $ 11,326
Issued as reinvestment of
dividends ............. 3,817 841 907 70
Redeemed ................ (6,967) (7,972) -- --
------------- ------------- ------------ ------------
Net increase/(decrease) . $ 43,200 $ 21,336 $ 7,049 $ 11,396
============= ============= ============ ============
------------------------------------------------------------------------------------------------------------------------------
SHARES
------
INSTITUTIONAL SHARES:
Sold .................... 8,744,186 7,224,683 236,186 629,304 2,050,398 6,195,290
Issued as reinvestment of
dividends ............. 677,352 348,822 157,497 59,776 74,864 268,632
Redeemed ................ (7,068,536) (6,314,208) (716,763) (1,550,074) (1,788,059) (2,702,006)
------------- ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) . 2,353,002 1,259,297 (323,080) (860,994) 337,203 3,761,916
============= ============= ============ ============ ============ ============
N SHARES:
Sold .................... 2,141,903 1,563,379 45,580 81,366 186,161 416,674
Issued as reinvestment of
dividends ............. 17,956 5,230 1,240 341 4,516 14,859
Redeemed ................ (2,007,638) (1,585,146) (48,772) (78,057) (130,123) (191,362)
------------- ------------- ------------ ------------ ------------ ------------
Net increase/(decrease) . 152,221 (16,537) (1,952) 3,650 60,554 240,171
============= ============= ============ ============ ============ ============
A SHARES:
Sold .................... 1,931 1,570 208 398
Issued as reinvestment of
dividends ............. 165 39 31 2
Redeemed ................ (301) (440) -- --
------------- ------------- ------------ ------------
Net increase/(decrease) . 1,795 1,169 239 400
============= ============= ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
---------------------------------------------------------------------------------------------------
EMERGING
BALANCED INTERNATIONAL MARKETS
FUND FUND FUND
---------------------------- ----------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/00 12/31/99 06/30/00 12/31/99 06/30/00 12/31/99
------------ ------------ ------------ ------------ ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
AMOUNT
------
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL SHARES:
Sold .................... $ 6,486,090 $ 4,534,958 $ 55,773,568 $103,993,552 $13,097,744 $ 7,340,024
Issued as reinvestment of
dividends ............. 213,472 3,687,911 -- 723,519 -- 54,602
Redeemed ................ (12,342,445) (36,707,015) (50,483,797) (81,341,884) (3,544,213) (2,178,733)
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease) . $ (5,642,883) $(28,484,146) $ 5,289,771 $ 23,375,187 $ 9,553,531 $ 5,215,893
============ ============ ============ ============= =========== ===========
N SHARES:
Sold .................... $ 48,152 $ 1,838,066 $ 8,599,238 $ 18,066,136 $ 196,778 $ 207,316
Issued as reinvestment of
dividends ............. 26,784 301,289 -- 2,397 -- 483
Redeemed ................ (527,673) (1,797,527) (5,738,864) (17,973,206) (86,013) (33,231)
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease) . $ (452,737) $ 341,828 $ 2,860,374 $ 95,327 $ 110,765 $ 174,568
============ ============ ============ ============= =========== ===========
A SHARES:
Sold .................... $ 43,704 $ 87,820 $ 1,890 $ 4,854 $ 31,970 $ 4,280
Issued as reinvestment of
dividends ............. 1,551 10,296 -- 8 -- 9
Redeemed ................ -- (1,287) -- (100) -- --
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease) . $ 45,255 $ 96,829 $ 1,890 $ 4,762 $ 31,970 $ 4,289
============ ============ ============ ============= =========== ===========
-------------------------------------------------------------------------------------------------------------------------------
SHARES
------
INSTITUTIONAL SHARES:
Sold .................... 503,865 320,649 3,700,017 7,437,408 1,405,301 983,502
Issued as reinvestment of
dividends ............. 16,605 290,697 -- 47,351 -- 6,320
Redeemed ................ (1,000,361) (2,723,810) (3,353,378) (5,807,576) (400,871) (281,212)
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease) . (479,891) (2,112,464) 346,639 1,677,183 1,004,430 708,610
============ ============ ============ ============ =========== ===========
N SHARES:
Sold .................... 3,848 129,757 577,939 1,447,182 22,403 27,345
Issued as reinvestment of
dividends ............. 2,084 24,226 -- 157 -- 56
Redeemed ................ (42,534) (128,469) (383,003) (1,420,194) (9,325) (4,383)
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease) . (36,602) 25,514 194,936 27,145 13,078 23,018
============ ============ ============ ============ =========== ===========
A SHARES:
Sold .................... 3,341 6,038 125 346 3,261 570
Issued as reinvestment of
dividends ............. 121 836 -- 1 -- 1
Redeemed ................ -- (90) -- (7) -- --
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease) . 3,462 6,784 125 340 3,261 571
============ ============ ============ ============ =========== ===========
</TABLE>
See Notes to Financial Statements.
76 and 77
<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
01/01/00 to 06/30/00(5) $1.00 $0.029 $ -- $(0.029) $ -- $1.00
12/31/99 1.00 0.049 -- (0.049) -- 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
N SHARES
01/01/00 to 06/30/00(5) $1.00 $0.027 $ -- $(0.027) $ -- $1.00
12/31/99 1.00 0.046 -- (0.046) -- 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
-----------
MONEY FUND
-----------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $1.00 $0.030 $ -- $(0.030) $ -- $1.00
12/31/99 1.00 0.052 -- (0.052) -- 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
N SHARES
01/01/00 to 06/30/00(5) $1.00 $0.028 $ -- $(0.028) $ -- $1.00
12/31/99 1.00 0.048 -- (0.048) -- 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
---------------------
TAX-EXEMPT MONEY FUND
---------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $1.00 $0.018 $ -- $(0.018) $ -- $1.00
12/31/99 1.00 0.030 -- (0.030) -- 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
N SHARES
01/01/00 to 06/30/00(5) $1.00 $0.017 $ -- $(0.017) $ -- $1.00
12/31/99 1.00 0.027 -- (0.027) -- 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
</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
01/01/00 to 06/30/00(5) 2.91%(2) $ 218,141 0.20%(1) 0.24%(1) 5.81%(1)
12/31/99 5.04 210,521 0.20 0.24 4.93
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
N SHARES
01/01/00 to 06/30/00(5) 2.74%(2) $ 285,681 0.55%(1) 0.59%(1) 5.46%(1)
12/31/99 4.67 289,651 0.55 0.59 4.58
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
-----------
MONEY FUND
-----------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 3.03%(2) $1,822,677 0.18%(1) 0.23%(1) 6.00%(1)
12/31/99 5.29 2,084,723 0.19 0.24 5.20
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
N SHARES
01/01/00 to 06/30/00(5) 2.85%(2) $1,088,310 0.53%(1) 0.58%(1) 5.65%(1)
12/31/99 4.92 1,053,228 0.54 0.59 4.85
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
---------------------
TAX-EXEMPT MONEY FUND
---------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 1.86%(2) $ 657,439 0.23%(1) 0.23%(1) 3.69%(1)
12/31/99 3.07 515,987 0.23 0.23 3.01
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
N SHARES
01/01/00 to 06/30/00(5) 1.69%(2) $ 203,345 0.56%(1) 0.58%(1) 3.34%(1)
12/31/99 2.75 240,132 0.55 0.58 2.71
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
</TABLE>
See Notes to Financial Statements.
78 and 79
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET NET
ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET UNREALIZED GAIN/ FROM NET FROM NET VALUE
BEGINNING INVESTMENT (LOSS) ON INVESTMENT REALIZED END OF
OF PERIOD INCOME INVESTMENTS INCOME GAINS PERIOD
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
-----------------------
SHORT/INTERMEDIATE FUND
-----------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $ 9.77 $0.311 $ 0.020 $(0.311) $ -- $ 9.79
12/31/99 10.30 0.595 (0.515) (0.595) (0.015) 9.77
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
01/01/00 to 06/30/00(5) $ 9.77 $0.298 $ 0.020 $(0.298) $ -- $ 9.79
12/31/99 10.30 0.570 (0.515) (0.570) (0.015) 9.77
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
A SHARES
01/01/00 to 06/30/00(5) $ 9.77 $0.298 $ 0.020 $(0.298) $ -- $ 9.79
07/22/99(3) to 12/31/99 10.02 0.258 (0.250) (0.258) -- 9.77
---------
BOND FUND
---------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $ 9.49 $0.311 $ 0.080 $(0.311) $ -- $ 9.57
12/31/99 10.20 0.611 (0.702) (0.611) (0.008) 9.49
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
01/01/00 to 06/30/00(5) $ 9.49 $0.299 $ 0.080 $(0.299) $ -- $ 9.57
12/31/99 10.20 0.586 (0.702) (0.586) (0.008) 9.49
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
01/01/00 to 06/30/00(5) $ 9.49 $0.299 $ 0.080 $(0.299) $ -- $ 9.57
02/18/99(3) to 12/31/99 10.11 0.503 (0.612) (0.503) (0.008) 9.49
----------------------------
INTERMEDIATE GOVERNMENT FUND
----------------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $15.56 $0.479 $ 0.150 $(0.479) $ -- $15.71
12/31/99 16.61 0.916 (1.050) (0.916) -- 15.56
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
01/01/00 to 06/30/00(5) $15.56 $0.460 $ 0.150 $(0.460) $ -- $15.71
12/31/99 16.61 0.876 (1.050) (0.876) -- 15.56
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
01/01/00 to 06/30/00(5) $15.56 $0.460 $ 0.150 $(0.460) $ -- $15.71
02/12/99(3) to 12/31/99 16.44 0.761 (0.880) (0.761) -- 15.56
</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
01/01/00 to 06/30/00(5) 3.45%(2) $304,279 0.60%(1) 0.93%(1) 6.42%(1) 33.09%
12/31/99 0.81 297,977 0.60 0.92 5.93 72.86
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
01/01/00 to 06/30/00(5) 3.32%(2) $ 3,724 0.85%(1) 1.18%(1) 6.17%(1) 33.09%
12/31/99 0.56 7,525 0.85 1.17 5.68 72.86
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
A SHARES
01/01/00 to 06/30/00(5) 3.32%(2)(4) $ 144 0.85%(1) 1.18%(1) 6.17%(1) 33.09%
07/22/99(3) to 12/31/99 0.09(2)(4) 140 0.85(1) 1.17(1) 5.68(1) 72.86
---------
BOND FUND
---------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 4.18%(2) $144,062 0.60%(1) 0.93%(1) 6.57%(1) 52.63%
12/31/99 (0.91) 157,587 0.60 0.90 6.20 92.79
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
01/01/00 to 06/30/00(5) 4.05%(2) $ 3,699 0.85%(1) 1.18%(1) 6.32%(1) 52.63%
12/31/99 (1.16) 4,455 0.85 1.15 5.95 92.79
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
01/01/00 to 06/30/00(5) 4.05%(2)(4) $ 29 0.85%(1) 1.18%(1) 6.32%(1) 52.63%
02/18/99(3) to 12/31/99 (1.09)(2)(4) 26 0.85(1) 1.15(1) 5.95(1) 92.79
----------------------------
INTERMEDIATE GOVERNMENT FUND
----------------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 4.11%(2) $ 73,409 0.50%(1) 0.98%(1) 6.18%(1) 16.57%
12/31/99 (0.80) 94,360 0.50 0.93 5.72 76.50
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
01/01/00 to 06/30/00(5) 3.98%(2) $ 4,744 0.75%(1) 1.23%(1) 5.93%(1) 16.57%
12/31/99 (1.05) 4,870 0.75 1.18 5.47 76.50
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
01/01/00 to 06/30/00(5) 3.98%(2)(4) $ 45 0.75%(1) 1.23%(1) 5.93%(1) 16.57%
02/12/99(3) to 12/31/99 (0.72)(2)(4) 232 0.75(1) 1.18(1) 5.47(1) 76.50
</TABLE>
See Notes to Financial Statements.
80 and 81
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET NET
ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET UNREALIZED GAIN/ FROM NET FROM NET VALUE
BEGINNING INVESTMENT (LOSS) ON INVESTMENT REALIZED END OF
OF PERIOD INCOME INVESTMENTS INCOME GAINS PERIOD
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
----------------------------
INTERMEDIATE TAX-EXEMPT FUND
----------------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $10.22 $0.250 $ 0.150 $(0.250) $ -- $10.37
12/31/99 10.70 0.423 (0.467) (0.423) (0.013) 10.22
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
01/01/00 to 06/30/00(5) $10.22 $0.238 $ 0.150 $(0.238) $ -- $10.37
12/31/99 10.70 0.396 (0.467) (0.396) (0.013) 10.22
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
---------------
TAX-EXEMPT FUND
---------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $ 9.63 $0.257 $ 0.240 $(0.257) $ -- $ 9.87
12/31/99 10.39 0.449 (0.760) (0.449) -- 9.63
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
01/01/00 to 06/30/00(5) $ 9.63 $0.245 $ 0.240 $(0.245) $ -- $ 9.87
12/31/99 10.39 0.424 (0.760) (0.424) -- 9.63
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
01/01/00 to 06/30/00(5) $30.55 $0.416 $(0.158) $(0.408) $ -- $30.40
12/31/99 24.14 0.983 6.544 (0.978) (0.139) 30.55
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
01/01/00 to 06/30/00(5) $30.54 $0.373 $(0.152) $(0.371) $ -- $30.39
12/31/99 24.14 0.902 6.559 (0.922) (0.139) 30.54
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
A SHARES
01/13/00(3) to 06/30/00(5) $29.42 $0.296 $ 1.045 $(0.381) $ -- $30.38
-----------
EQUITY FUND
-----------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $14.63 $0.024 $ 0.716 $(0.026) $(0.814) $14.53
12/31/99 17.03 0.049 (0.339) (0.050) (2.060) 14.63
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
</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>
----------------------------
INTERMEDIATE TAX-EXEMPT FUND
----------------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 3.97%(2) $186,319 0.23%(1) 0.83%(1) 4.92%(1) 126.69%
12/31/99 (0.43) 177,813 0.69 0.82 4.03 191.27
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
01/01/00 to 06/30/00(5) 3.84%(2) $ 548 0.48%(1) 1.08%(1) 4.67%(1) 126.69%
12/31/99 (0.68) 2,743 0.94 1.07 3.78 191.27
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
---------------
TAX-EXEMPT FUND
---------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 5.24%(2) $100,184 0.26%(1) 0.86%(1) 5.32%(1) 107.08%
12/31/99 (3.07) 126,027 0.70 0.83 4.44 225.82
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
01/01/00 to 06/30/00(5) 5.11%(2) $ 861 0.51%(1) 1.11%(1) 5.07%(1) 107.08%
12/31/99 (3.31) 1,109 0.95 1.08 4.19 225.82
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
01/01/00 to 06/30/00(5) 0.79%(2) $ 52,552 0.92%(1) 1.08%(1) 2.75%(1) 34.52%
12/31/99 32.07 52,100 0.92 1.01 3.73 20.14
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
01/01/00 to 06/30/00(5) 0.68%(2) $ 350 1.17%(1) 1.33%(1) 2.50%(1) 34.52%
12/31/99 31.75 375 1.17 1.26 3.48 20.14
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)
A SHARES
01/13/00(3) to 06/30/00(5) 4.51%(2)(4) $ 20 1.17%(1) 1.33%(1) 2.50%(1) 34.52%
-----------
EQUITY FUND
-----------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 5.01%(2) $477,911 0.93%(1) 0.93%(1) 0.30%(1) 35.89%
12/31/99 (1.57) 579,754 0.90 0.91 0.29 65.13
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
</TABLE>
See Notes to Financial Statements.
82 and 83
<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 GAIN/ FROM NET FROM NET VALUE
BEGINNING INVESTMENT (LOSS) ON INVESTMENT REALIZED END OF
OF PERIOD INCOME INVESTMENTS INCOME GAINS PERIOD
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
-----------------------
EQUITY FUND (CONTINUED)
-----------------------
N SHARES
01/01/00 to 06/30/00(5) $14.63 $ 0.003 $ 0.716 $(0.005) $(0.814) $14.53
12/31/99 17.02 0.005 (0.323) (0.012) (2.060) 14.63
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
A SHARES
01/01/00 to 06/30/00(5) $14.63 $(0.001) $ 0.716 $(0.001) $(0.814) $14.53
02/12/99(3) to 12/31/99 16.97 (0.002) (0.275) (0.003) (2.060) 14.63
------------------
EQUITY INCOME FUND
------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $20.40 $ 0.111 $(1.168) $(0.109) $(0.164) $19.07
12/31/99 19.27 0.168 1.713 (0.173) (0.578) 20.40
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
01/01/00 to 06/30/00(5) $20.40 $ 0.089 $(1.179) $(0.086) $(0.164) $19.06
12/31/99 19.26 0.105 1.741 (0.128) (0.578) 20.40
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
01/01/00 to 06/30/00(5) $20.40 $ 0.087 $(1.176) $(0.087) $(0.164) $19.06
02/10/99(3) to 12/31/99 19.26 0.098 1.744 (0.124) (0.578) 20.40
-----------
GROWTH FUND
-----------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $29.14 $(0.036) $ 0.316 $ -- $(0.300) $29.12
12/31/99 26.25 (0.042) 4.319 -- (1.387) 29.14
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
01/01/00 to 06/30/00(5) $28.97 $(0.061) $ 0.311 $ -- $(0.300) $28.92
12/31/99 26.18 (0.119) 4.296 -- (1.387) 28.97
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
01/01/00 to 06/30/00(5) $28.96 $(0.062) $ 0.312 $ -- $(0.300) $28.91
02/05/99(3) to 12/31/99 27.00 (0.073) 3.420 -- (1.387) 28.96
</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>
-----------------------
EQUITY FUND (CONTINUED)
-----------------------
N SHARES
01/01/00 to 06/30/00(5) 4.87%(2) $ 17,922 1.18%(1) 1.18%(1) 0.05%(1) 35.89%
12/31/99 (1.74) 19,685 1.15 1.16 0.04 65.13
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
A SHARES
01/01/00 to 06/30/00(5) 4.87%(2)(4) $ 189 1.18%(1) 1.18%(1) 0.05%(1) 35.89%
02/12/99(3) to 12/31/99 (1.50)(2)(4) 161 1.23(1) 1.24(1) (0.04)(1) 65.13
------------------
EQUITY INCOME FUND
------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) (5.21)%(2) $ 66,806 0.93%(1) 1.01%(1) 1.11%(1) 6.43%
12/31/99 9.87 79,458 0.93 0.99 0.86 18.57
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
01/01/00 to 06/30/00(5) (5.37)%(2) $ 5,615 1.18%(1) 1.26%(1) 0.86%(1) 6.43%
12/31/99 9.68 5,117 1.18 1.24 0.61 18.57
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
01/01/00 to 06/30/00(5) (5.36)%(2)(4) $ 594 1.18%(1) 1.26%(1) 0.86%(1) 6.43%
02/10/99(3) to 12/31/99 9.66(2)(4) 437 1.24(1) 1.30(1) 0.55(1) 18.57
-----------
GROWTH FUND
-----------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 0.97%(2) $184,083 1.10%(1) 1.15%(1) (0.25)%(1) 21.78%
12/31/99 16.56 182,283 1.10 1.14 (0.16) 35.11
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
01/01/00 to 06/30/00(5) 0.87%(2) $ 8,603 1.35%(1) 1.40%(1) (0.50)%(1) 21.78%
12/31/99 16.22 7,800 1.35 1.39 (0.41) 35.11
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
01/01/00 to 06/30/00(5) 0.87%(2)(4) $ 963 1.35%(1) 1.40%(1) (0.50)%(1) 21.78%
02/05/99(3) to 12/31/99 12.65(2)(4) 710 1.42(1) 1.46(1) (0.48)(1) 35.11
</TABLE>
See Notes to Financial Statements.
84 and 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 GAIN/ FROM NET FROM NET VALUE
BEGINNING INVESTMENT (LOSS) ON INVESTMENT REALIZED END OF
OF PERIOD INCOME INVESTMENTS INCOME GAINS PERIOD
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
--------------------------
SMALL-CAP OPPORTUNITY FUND
--------------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $24.17 $(0.078) $ 1.177 $ -- $(1.379) $23.89
12/31/99 17.85 (0.039) 7.124 -- (0.765) 24.17
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
01/01/00 to 06/30/00(5) $23.99 $(0.106) $ 1.165 $ -- $(1.379) $23.67
12/31/99 17.77 (0.057) 7.042 -- (0.765) 23.99
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
01/01/00 to 06/30/00(5) $23.99 $(0.095) $ 1.144 $ -- $(1.379) $23.66
03/05/99(3) to 12/31/99 16.67 (0.092) 8.177 -- (0.765) 23.99
--------------------
SMALL-CAP VALUE FUND
--------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $30.29 $ 0.016 $ 1.797 $ -- $(1.553) $30.55
12/31/99 30.69 0.124 0.015 (0.122) (0.417) 30.29
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
01/01/00 to 06/30/00(5) $30.28 $(0.028) $ 1.811 $ -- $(1.553) $30.51
12/31/99 30.69 0.031 0.029 (0.053) (0.417) 30.28
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
A SHARES
01/01/00 to 06/30/00(5) $30.28 $ 0.004 $ 1.779 $ -- $(1.553) $30.51
08/18/99(3) to 12/31/99 29.09 0.008 1.368 (0.051) (0.135) 30.28
----------
INDEX FUND
----------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $33.21 $ 0.142 $(0.375) $(0.139) $(0.118) $32.72
12/31/99 28.35 0.307 5.420 (0.305) (0.562) 33.21
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
01/01/00 to 06/30/00(5) $33.21 $ 0.102 $(0.382) $(0.102) $(0.118) $32.71
12/31/99 28.35 0.249 5.413 (0.240) (0.562) 33.21
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>
--------------------------
SMALL-CAP OPPORTUNITY FUND
--------------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 4.68%(2) $483,322 1.20%(1) 1.22%(1) (0.69)%(1) 46.89%
12/31/99 40.14 432,071 1.20 1.21 (0.50) 59.99
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 14.49(2) 150,306 1.20(1) 1.22(1) 0.46(1) 46.13
N SHARES
01/01/00 to 06/30/00(5) 4.55%(2) $ 9,913 1.45%(1) 1.47%(1) (0.94)%(1) 46.89%
12/31/99 39.75 6,397 1.45 1.46 (0.75) 59.99
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
01/01/00 to 06/30/00(5) 4.51%(2)(4) $ 70 1.45%(1) 1.47%(1) (0.94)%(1) 46.89%
03/05/99(3) to 12/31/99 48.98(2)(4) 28 1.49(1) 1.50(1) (0.79)(1) 59.99
--------------------
SMALL-CAP VALUE FUND
--------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 6.13%(2) $106,686 0.99%(1) 1.08%(1) 0.10%(1) 44.34%
12/31/99 0.49 115,544 0.99 1.04 0.37 70.84
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
01/01/00 to 06/30/00(5) 6.03%(2) $ 689 1.24%(1) 1.33%(1) (0.15)%(1) 44.34%
12/31/99 0.22 743 1.24 1.29 0.12 70.84
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)
A SHARES
01/01/00 to 06/30/00(5) 6.03%(2)(4) $ 20 1.24%(1) 1.33%(1) (0.15)%(1) 44.34%
08/18/99(3) to 12/31/99 4.77(2)(4) 12 1.24(1) 1.29(1) 0.12(1) 70.84
----------
INDEX FUND
----------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) (0.71)%(2) $552,619 0.45%(1) 0.46%(1) 0.88%(1) 3.05%
12/31/99 20.40 549,696 0.45 0.46 1.04 2.17
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
01/01/00 to 06/30/00(5) (0.85)%(2) $ 25,679 0.70%(1) 0.71%(1) 0.63%(1) 3.05%
12/31/99 20.14 24,056 0.70 0.71 0.79 2.17
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.
86 and 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 GAIN/ FROM NET FROM NET VALUE
BEGINNING INVESTMENT (LOSS) ON INVESTMENT REALIZED END OF
OF PERIOD INCOME INVESTMENTS INCOME GAINS PERIOD
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
-------------
BALANCED FUND
-------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $12.38 $ 0.201 $ 0.515 $(0.196) $ -- $12.90
12/31/99 14.44 0.444 (0.668) (0.435) (1.401) 12.38
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
01/01/00 to 06/30/00(5) $12.38 $ 0.154 $ 0.546 $(0.180) $ -- $12.90
12/31/99 14.44 0.386 (0.641) (0.404) (1.401) 12.38
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
01/01/00 to 06/30/00(5) $12.38 $ 0.166 $ 0.527 $(0.183) $ -- $12.89
02/10/99(3) to 12/31/99 14.14 0.340 (0.305) (0.394) (1.401) 12.38
------------------
INTERNATIONAL FUND
------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $15.89 $ 0.078 $(0.828) $ -- $ -- $15.14
12/31/99 12.55 0.117 3.309 (0.086) -- 15.89
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
01/01/00 to 06/30/00(5) $15.89 $ 0.053 $(0.833) $ -- $ -- $15.11
12/31/99 12.55 0.101 3.262 (0.023) -- 15.89
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
01/01/00 to 06/30/00(5) $15.89 $ 0.090 $(0.860) $ -- $ -- $15.12
03/05/99(3) to 12/31/99 11.90 (0.009) 4.022 (0.023) -- 15.89
---------------------
EMERGING MARKETS FUND
---------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) $ 9.64 $ 0.055 $(1.065) $ -- $ -- $ 8.63
12/31/99 5.87 (0.004) 3.790 (0.016) -- 9.64
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
01/01/00 to 06/30/00(5) $ 9.58 $ 0.056 $(1.096) $ -- $ -- $ 8.54
12/31/99 5.85 (0.027) 3.773 (0.016) -- 9.58
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
A SHARES
01/01/00 to 06/30/00(5) $ 9.58 $ 0.078 $(1.118) $ -- $ -- $ 8.54
08/12/99(3) to 12/31/99 7.47 (0.024) 2.150 (0.016) -- 9.58
</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>
-------------
BALANCED FUND
-------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) 5.79%(2) $ 16,598 0.88%(1) 1.61%(1) 2.84%(1) 40.05%
12/31/99 (1.30) 21,871 0.88 1.05 2.84 67.77
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
01/01/00 to 06/30/00(5) 5.66%(2) $ 1,937 1.13%(1) 1.86%(1) 2.59%(1) 40.05%
12/31/99 (1.52) 2,311 1.13 1.30 2.59 67.77
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
01/01/00 to 06/30/00(5) 5.60%(2)(4) $ 132 1.13%(1) 1.86%(1) 2.59%(1) 40.05%
02/10/99(3) to 12/31/99 0.50(2)(4) 84 1.21(1) 1.38(1) 2.51(1) 67.77
------------------
INTERNATIONAL FUND
------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) (4.72)%(2) $265,172 1.36%(1) 1.37%(1) 1.46%(1) 37.00%
12/31/99 27.33 272,886 1.35 1.35 0.86 48.49
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
01/01/00 to 06/30/00(5) (4.91)%(2) $ 5,352 1.61%(1) 1.62%(1) 1.21%(1) 37.00%
12/31/99 26.81 2,531 1.60 1.60 0.61 48.49
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
01/01/00 to 06/30/00(5) (4.85)%(2)(4) $ 7 1.61%(1) 1.62%(1) 1.21%(1) 37.00%
03/05/99(3) to 12/31/99 33.73(2)(4) 5 1.65(1) 1.65(1) 0.56(1) 48.49
---------------------
EMERGING MARKETS FUND
---------------------
INSTITUTIONAL SHARES
01/01/00 to 06/30/00(5) (10.48)%(2) $ 42,813 1.65%(1) 1.70%(1) 1.09%(1) 28.45%
12/31/99 64.53 38,155 1.70 1.76 (0.17) 53.69
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
01/01/00 to 06/30/00(5) (10.86)%(2) $ 398 1.90%(1) 1.95%(1) 0.84%(1) 28.45%
12/31/99 64.06 322 1.95 2.01 (0.42) 53.69
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) --
A SHARES
01/01/00 to 06/30/00(5) (10.86)%(2)(4) $ 33 1.90%(1) 1.95%(1) 0.84%(1) 28.45%
08/12/99(3) to 12/31/99 28.48(2)(4) 5 1.95(1) 2.01(1) (0.42)(1) 53.69
<FN>
(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.
</FN>
</TABLE>
See Notes to Financial Statements.
88 and 89
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED)
1. ORGANIZATION
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 eighteen
diversified investment portfolios. The portfolios of the Trust are each referred
to as a "Fund" and collectively, as the "Funds" and are as follows:
EQUITY FUNDS:
Harris Insight Equity Fund ("Equity Fund")
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 Short/Intermediate Bond Fund ("Short/Intermediate
Fund")
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")
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")
Prior to May 1, 2000, the Equity, Short/Intermediate, Government Money,
Money and Tax-Exempt Money Funds were investment portfolios of HT Insight Funds,
Inc., doing business as Harris Insight Funds (the "Company"). On November 29,
1999, the shareholders of the Company voted to approve a tax-free reorganization
of each Fund of the Company into a newly created investment portfolio of the
Trust, effective May 1, 2000.
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 (originally known as "Advisor Shares") were first offered on 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, 2000, no A shares
of the Intermediate Tax-Exempt Bond and Tax-Exempt Bond Funds had been issued.
90
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
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 accounting principles generally accepted in the United States. The
preparation of financial statements in accordance with accounting principles
generally accepted in the United States 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 considered
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 of the Funds. 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. Debt obligations, other than bonds, with
remaining maturities of 60 days or less are valued at amortized cost. Note: The
Board has adopted procedures specifying valuation at 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.
91
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
(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 among 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, be
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 on the collateral by the Fund may be
delayed or limited.
92
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
(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 on 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 (consisting of repurchase agreements, commercial paper and
money market funds) held by the Funds with respect to such loans (including
rights to draw on letters of credit) at June 30, 2000, and income earned on
securities loaned for the six months ended June 30, 2000, are as follows:
<TABLE>
<CAPTION>
MARKET VALUE OF VALUE OF COLLATERAL INCOME EARNED ON
SECURITIES ON LOAN RECEIVED SECURITIES LOANED*
------------------ ------------------- ------------------
<S> <C> <C> <C>
Short/Intermediate Fund .......... $ 39,388,613 $40,454,269 $ 5,973
Bond Fund ........................ 2,689,556 2,760,268 1,286
Intermediate Government Fund ..... 0 0 735
Convertible Securities Fund ...... 3,560,254 3,615,260 14,952
Equity Fund ...................... 26,301,450 26,391,300 36,685
Equity Income Fund ............... 6,639,117 6,920,123 4,906
Growth Fund ...................... 10,266,893 10,488,091 12,531
Small-Cap Opportunity Fund ....... 69,896,272 71,874,749 52,242
Small-Cap Value Fund ............. 6,220,921 6,348,140 51,300
Index Fund ....................... 57,027,270 58,652,665 42,666
Balanced Fund .................... 630,002 641,859 1,440
<FN>
*Income is included in interest income in the Statements of Operations.
</FN>
</TABLE>
(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 Trust retains 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%
93
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
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, 2000,
advisory fees and waivers for certain Funds were as follows:
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
------------ -------- ------------
Short/Intermediate Fund ............ $1,072,768 $501,273 $ 571,495
Bond Fund .......................... 494,561 239,619 254,942
Intermediate Government Fund ....... 294,739 206,621 88,118
Intermediate Tax-Exempt Fund ....... 547,505 547,505 --
Tax-Exempt Fund .................... 331,270 331,270 --
Convertible Securities Fund ........ 185,090 29,536 155,554
Equity Income Fund ................. 271,182 21,889 249,293
Growth Fund ........................ 867,878 36,710 831,168
Small-Cap Opportunity Fund ......... 2,328,003 26,421 2,301,582
Small-Cap Value Fund ............... 424,895 34,658 390,237
Index Fund ......................... 710,718 29,341 681,377
Balanced Fund ...................... 51,791 51,791 --
There were no advisory fee waivers for the other Funds.
For the six months ended June 30, 2000, Harris Trust also reimbursed
expenses of $2,522 for the Balanced Fund.
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. 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 Trust has an Administration Agreement with Harris Trust (the
"Administrator"). In its capacity as the Administrator, Harris Trust generally
assists the Funds in all aspects of their administration and operation. The
Administrator has entered into 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 months ended June 30, 2000, the
Administrator waived fees of $113,040 for the Government Money Fund and $732,563
for the Money Fund.
Provident Distributors, Inc. ("PDI" or the "Distributor") provides services
as distributor in connection with sales of shares of the Funds. No compensation
is payable by the Funds 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, 2000, the aggregate
94
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
sales charges paid with respect to A shares of the Funds were $27,574, of which
$2,400 was retained and $25,174 was reallowed to dealer firms. Sales charges
retained and reallowed are as follows:
RETAINED REALLOWED
-------- ---------
Bond Fund ............................. $ 4 $ 64
Intermediate Government Fund .......... 2 33
Equity Fund ........................... 115 1,175
Equity Income Fund .................... 957 9,699
Growth Fund ........................... 1,007 10,980
Small-Cap Opportunity Fund ............ 46 451
Small-Cap Value Fund .................. 10 100
Balanced Fund ......................... 224 2,312
International Fund .................... 10 100
Emerging Markets Fund ................. 25 260
Certain employees of PFPC Inc. are officers of the Funds. During the six
months ended June 30, 2000, PFPC received $3,025,055 in aggregate fees and
expenses (net of waivers of $115,908) from the Administrator for services
rendered under various agreements described above.
4. SERVICE PLANS
The Trust has 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 N shares of 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 0.25% (on an annualized basis) of the average daily net assets
attributable to A shares.
For the six months ended June 30, 2000, 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 ......................... $ 4,937
Bond Fund ....................................... 4,802
Intermediate Government Fund .................... 6,058
Intermediate Tax-Exempt Fund .................... 921
Tax-Exempt Fund ................................. 1,105
Convertible Securities Fund ..................... 432
Equity Fund ..................................... 22,719
Equity Income Fund .............................. 7,358
Growth Fund ..................................... 9,152
Small-Cap Opportunity Fund ...................... 11,902
Small-Cap Value Fund ............................ 833
Index Fund ...................................... 31,079
Balanced Fund ................................... 2,557
International Fund .............................. 3,215
Emerging Markets Fund ........................... 436
95
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
For the six months ended June 30, 2000, shareholder service fees paid by
the Money Market Funds under the Plan were $371,609, $1,331,120, and $298,814
and fees paid under the 12b-1 Plan were $148,643, $532,448, and $99,014 (net of
voluntary waivers of $0, $0, and $20,511) for the N shares of the Government
Money Fund, Money Fund, and Tax-Exempt Money Fund, respectively.
For the six months ended June 30, 2000, the following funds have paid fees
under the 12b-1 Plan for A shares. The fees are as follows:
Short/Intermediate Fund .......................... $ 175
Bond Fund ........................................ 34
Intermediate Government Fund ..................... 132
Convertible Securities Fund ...................... 18
Equity Fund ...................................... 224
Equity Income Fund ............................... 658
Growth Fund ...................................... 1,006
Small-Cap Opportunity Fund ....................... 74
Small-Cap Value Fund ............................. 19
Balanced Fund .................................... 114
International Fund ............................... 8
Emerging Markets Fund ............................ 37
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, 2000 and the net realized gains and
losses on securities sold for the period then ended for each of the Funds for
federal income tax purposes was not materially different from the amounts
reported for financial reporting purposes.
Purchases and sales of investment securities of the non-Money Market Funds
(excluding short-term investments and U.S. government securities) during the six
months ended June 30, 2000 were as follows:
PURCHASES SALES
----------- ------------
Short/Intermediate Fund .................. $ 62,058,184 $ 70,419,944
Bond Fund ................................ 32,612,227 53,470,483
Intermediate Government Fund ............. 5,248,095 2,310,710
Intermediate Tax-Exempt Fund ............. 228,876,807 222,256,963
Tax-Exempt Fund .......................... 113,043,963 140,066,915
Convertible Securities Fund .............. 18,895,786 17,932,919
Equity Fund .............................. 191,934,012 309,033,448
Equity Income Fund ....................... 4,803,253 9,141,800
Growth Fund .............................. 43,142,589 41,117,025
Small-Cap Opportunity Fund ............... 237,457,890 212,165,423
Small-Cap Value Fund ..................... 45,908,518 59,283,076
Index Fund ............................... 65,523,658 16,882,788
Balanced Fund ............................ 3,944,507 14,493,932
International Fund ....................... 110,340,969 93,207,101
Emerging Markets Fund .................... 19,032,738 11,038,740
96
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
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,
2000 were as follows:
PURCHASES SALES
----------- -----------
Short/Intermediate Fund ....................... $72,118,955 $23,602,111
Bond Fund ..................................... 45,859,584 42,861,992
Intermediate Government Fund .................. 9,333,359 21,388,493
Balanced Fund ................................. 2,773,982 535,932
At June 30, 2000, gross unrealized appreciation (depreciation) for each
non-Money Market Fund was as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------- -------------- --------------
<S> <C> <C> <C>
Short/Intermediate Fund .......... $ 587,194 $ (7,609,924) $ (7,022,730)
Bond Fund ........................ 493,638 (3,821,927) (3,328,289)
Intermediate Government Fund ..... 333,758 (2,130,030) (1,796,272)
Intermediate Tax-Exempt Fund ..... 2,510,707 (609,133) 1,901,574
Tax-Exempt Fund .................. 2,241,925 (333,746) 1,908,179
Convertible Securities Fund ...... 13,111,720 (7,462,682) 5,649,038
Equity Fund ...................... 92,991,494 (34,153,753) 58,837,741
Equity Income Fund ............... 24,501,528 (4,828,591) 19,672,937
Growth Fund ...................... 79,173,594 (7,125,921) 72,047,673
Small-Cap Opportunity Fund ....... 139,389,110 (27,531,825) 111,857,285
Small-Cap Value Fund ............. 12,487,283 (14,288,050) (1,800,767)
Index Fund ....................... 248,932,079 (22,883,931) 226,048,148
Balanced Fund .................... 1,552,098 (764,778) 787,320
International Fund ............... 38,120,554 (26,225,218) 11,895,336
Emerging Markets Fund ............ 8,976,921 (3,862,911) 5,114,010
</TABLE>
At December 31, 1999, the following Funds had available capital losses that
may be used to offset future net capital gains through the years 2005, 2006,
2007, and 2008:
Government Money Fund ..................... $ (83,237)
Money Fund ................................ (14,571)
Tax-Exempt Money Fund ..................... (8,480)
Short/Intermediate Fund ................... (2,912,708)
Bond Fund ................................. (4,224,435)
Tax-Exempt Fund ........................... (3,594,081)
Intermediate Government Fund .............. (1,156,972)
Intermediate Tax-Exempt Fund .............. (3,466,285)
Convertible Securities Fund ............... (681,864)
Balanced Fund ............................. (426,908)
International Fund ........................ (1,267,793)
Emerging Markets Fund ..................... (6,667,774)
97
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
7. COMPOSITION OF NET ASSETS
At June 30, 2000, net assets of each Fund consisted of:
<TABLE>
<CAPTION>
GOVERNMENT TAX-EXEMPT
MONEY FUND MONEY FUND MONEY FUND
------------ -------------- ------------
<S> <C> <C> <C>
Beneficial Interest at Par Value ........... $ 503,904 $ 2,910,980 $ 860,789
Paid-in Capital ............................ 503,400,169 2,908,069,464 859,928,098
Undistributed Net Investment Income ........ -- 20 --
Amortized Market Discount .................. -- -- 3,443
Accumulated Net Realized Gain/(Loss) ....... (82,375) 6,975 (8,437)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Translations ........ -- -- --
------------ -------------- ------------
Net Assets ................................. $503,821,698 $2,910,987,439 $860,783,893
============ ============== ============
</TABLE>
<TABLE>
<CAPTION>
SHORT/ INTERMEDIATE
INTERMEDIATE GOVERNMENT
FUND BOND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
Beneficial Interest at Par Value ........... $ 31,470 $ 15,450 $ 4,978
Paid-in Capital ............................ 322,123,755 157,641,263 82,105,251
Undistributed Net Investment Income ........ -- -- --
Accumulated Net Realized Gain/(Loss) ....... (6,985,879) (6,538,550) (2,115,891)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Translations ........ (7,022,730) (3,328,289) (1,796,272)
------------ ------------ -----------
Net Assets ................................. $308,146,616 $147,789,874 $78,198,066
============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE CONVERTIBLE
TAX-EXEMPT TAX-EXEMPT SECURITIES EQUITY
FUND FUND FUND FUND
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
Beneficial Interest at Par Value ........... $ 18,016 $ 10,241 $ 1,741 $ 34,135
Paid-in Capital ............................ 188,032,514 102,516,317 41,527,769 382,729,063
Undistributed Net Investment Income ........ -- -- 30,878 (73,679)
Accumulated Net Realized Gain/(Loss) ....... (3,084,707) (3,389,286) 5,712,180 54,494,618
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Translations ........ 1,901,574 1,908,179 5,649,038 58,837,741
------------ ------------ ----------- ------------
Net Assets ................................. $186,867,397 $101,045,451 $52,921,606 $496,021,878
============ ============ =========== ============
</TABLE>
98
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
EQUITY SMALL-CAP SMALL-CAP
INCOME GROWTH OPPORTUNITY VALUE
FUND FUND FUND FUND
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Beneficial Interest at Par Value ........... $ 3,830 $ 6,651 $ 20,654 $ 3,515
Paid-in Capital ............................ 51,737,573 112,085,034 307,772,577 97,785,989
Undistributed Net Investment Income ........ 8,284 (249,773) (1,622,274) 60,848
Accumulated Net Realized Gain/(Loss) ....... 1,592,349 9,759,297 75,277,092 11,345,065
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Translations ........ 19,672,937 72,047,673 111,857,285 (1,800,767)
----------- ------------ ------------ ------------
Net Assets ................................. $73,014,973 $193,648,882 $493,305,334 $107,394,650
=========== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
EMERGING
INDEX BALANCED INTERNATIONAL MARKETS
FUND FUND FUND FUND
------------ ----------- ------------- -----------
<S> <C> <C> <C> <C>
Beneficial Interest at Par Value ........... $ 17,651 $ 1,447 $ 17,882 $ 5,013
Paid-in Capital ............................ 342,774,677 17,617,707 255,893,559 43,700,890
Undistributed Net Investment Income ........ 37,993 7,410 1,268,598 162,248
Accumulated Net Realized Gain/(Loss) ....... 9,419,787 253,282 1,455,706 (5,737,829)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Translations ........ 226,048,148 787,320 11,895,336 5,114,010
------------ ----------- ------------ -----------
Net Assets ................................. $578,298,256 $18,667,166 $270,531,081 $43,244,332
============ =========== ============ ===========
</TABLE>
8. CONCENTRATION OF RISKS
The Tax-Exempt Money Fund, Intermediate Tax-Exempt Fund and Tax-Exempt Bond
Fund invest primarily in diversified portfolios 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.
9. LINE OF CREDIT
On December 13, 1999, the Trust, on behalf of the Funds, established a
364-day $300,000,000 aggregate Revolving Credit Facility ("Credit Facility")
with the Bank of Montreal, the parent of Harris Trust. The Credit Facility
permits one or more of the Funds to borrow for temporary or emergency purposes,
including, without limitation, funding of shareholder redemptions. Under the
terms of the Credit Facility, each Fund pays a quarterly commitment fee at a
rate of 0.09% per annum on the average daily balance of the Credit Facility that
is available during each quarter ("Commitment Fee"). The Commitment Fee is
allocated among the Funds based on relative net assets of the Funds. In
addition, the Funds will pay interest on any borrowings at the Federal Funds
rate plus 0.50%. At June 30, 2000 and during the six months ended June 30, 2000,
none of the Funds had borrowings under the Credit Facility.
99
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
10. RELATED PARTY TRANSACTION
In August 1999, the issuer of a class of security held by the Money Market
Fund refused for a period of time to honor the seven-day puts it had issued with
those securities. In order to ensure that the Fund would not incur a loss on the
security, Bankmont Financial Corp. (the second tier parent of the advisor), at
no cost to the Fund, gave the Fund a put under which the Fund could put the
security to Bankmont at par plus accrued interest. Eventually, the issuer
purchased the security from the Fund at par plus accrued interest, and the
Bankmont put expired unexercised.
100
<PAGE>
HARRIS INSIGHT(R) FUNDS
3200 HORIZON DRIVE
KING OF PRUSSIA, PA 19406
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 GlobalInvestors,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.
3200 Horizon Drive
King of Prussia, Pennsylvania 19406
CUSTODIAN
PFPC Trust Co.
8800 Tinicum Boulevard
Philadelphia, Pennsylvania 19153
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Two Commerce Square
Suite 1700
2001 Market Street
Philadelphia, Pennsylvania 19103-7042
LEGAL COUNSEL
Bell, Boyd & Lloyd
Three First National Plaza
70 West Madison Street
Chicago, Illinois 60602
BOARD OF TRUSTEES
C. GARY GERST
Chairman of the Board of Trustees; Chairman Emeritus, Jones Lang LaSalle,
formerly named LaSalle Partners Ltd. (real estate investment manager and
consulting firm). Director, Nonlinear Dynamics, Inc. (applications software
producer) and Florida Office Property Company, Inc. (real estate investment
fund).
EDGAR R. FIEDLER
Senior Fellow and Economic Counselor, The Conference Board. Director or Trustee,
The Stanley Works (tool manufacturer), AARP Income Trust, Scudder Institutional
Funds, Scudder Pathway Series, Farmer's Investment Trust, Brazil Fund and PEG
Capital Management (investment companies).
VALERIE B. JARRETT
Executive Vice President, The Habitat Company (residential property developer)
and Chairman and Chief Executive Officer, Chicago Transit Authority. Director,
USG Corporation (building materials manufacturer).
JOHN W. MCCARTER, JR.
President and Chief Executive Officer, The Field Museum of Natural History since
1996. Senior Vice President and Director, Booz-Allen & Hamilton, Inc.
(consulting firm) prior thereto. Director, W.W. Grainger, Inc. (industrial
distributor) and A.M. Castle, Inc. (metals distributor).
PAULA WOLFF
Senior Executive, Chicago Metropolis 2020 (civic organization) since 2000.
President, Governors State University prior thereto. Trustee, University of
Chicago; Chair, University of Chicago Hospitals; and Director, Ariel Capital
Management, Inc. (investment manager).
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 06/00
