HARRIS
INSIGHT(REGISTRATION MARK) FUNDS
ANNUAL REPORT
DECEMBER 31, 1999
[GRAPHIC OMITTED]
HARRIS
INSIGHT (REGISTRATION MARK) FUNDS
POWERFUL INSIGHT. SOLID INVESTMENTS.(REGISTRATION MARK)
<PAGE>
-----------------------------------------------------------------
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
-----------------------------------------------------------------
<PAGE>
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER:
We are pleased to report to you results for the Harris Insight Funds for the
year ended December 31, 1999. Within this annual report you will find Harris
Investment Management's review of the equity and fixed income markets during the
year, as well as their outlook for the markets and the economy for the year
2000. Summary reports are also provided for each of the Harris Insight Funds,
with information about the major factors that influenced each Fund's performance
in 1999.
THE CAPITAL MARKETS IN 1999
The ongoing strength in the U.S. economy and the rumblings of recovery overseas
provided an attractive backdrop for some types of equity investors, especially
speculative investors. This same strength led the Federal Reserve to increase
short-term rates by a quarter of a percentage point on three occasions, leading
to some of the worst returns in the bond market in many years. Long U.S.
treasury yields began the year at slightly above 5% and closed the year at
6.48%, making 1999 a very difficult period for bonds.
The broad equity market provided a fifth year of over 20% returns. The Standard
& Poor's 500 Index had a cumulative total return of 250% over the past five
years and is the best cumulative return in the Index's history. The Index's
gains were generated on the strength of an increasingly narrow list of
companies, which in 1999 were chiefly technology and Internet companies. As a
result, approximately two-thirds of all stocks in the S&P 500 declined for the
year while the NASDAQ rose 86%, the biggest annual gain ever recorded by any
market index. The Dow Jones Internet Index indicates that the average Internet
stock rose 167% for the year. Value investors faced similar challenges in
foreign capital markets, with much of their returns coming through very few
growth-type stocks, accompanied by a strong showing in non-U.S. technology and
Internet companies.
VALUE WAS OUT OF FAVOR IN 1999
The paths to success in equity investing in 1999, both domestically and abroad,
were either to invest as a growth manager or speculate. Speculators who
purchased companies with extraordinarily high valuations and strong price
momentum outperformed, while investors like us who focused on company earnings
and valuations suffered on a relative basis. Thus, value investors did not fare
well in 1999. Mutual funds managed through a value discipline such as the Harris
Insight Equity and Small-Cap Value Funds were penalized, while the Equity Income
Fund posted very strong returns compared with its peer group. At the same time,
growth investors fared much better. Those Harris Insight Funds that are managed
with a growth emphasis, the Growth and the Small-Cap Opportunity Funds, provided
their investors with competitive returns when compared with the broad markets
and within their peer groups.
1
<PAGE>
LETTER TO SHAREHOLDERS
(CONTINUED)
THE FIXED-INCOME MARKETS IN 1999
In the money-market and fixed-income investment markets, the Harris Insight
Funds performed well relative to other fund families. The Money Market Fund
Institutional Shares were #1 out of 197 institutional money market funds for the
year according to Lipper Analytical Services. The Government and Tax-Exempt
Money Market Funds provided very competitive returns as well. With the
aforementioned tightening by the Federal Reserve, interest rates marched
steadily higher during the year. The Harris Insight Fixed Income Funds
successfully navigated these rapids and provided very competitive relative
returns when compared with their peers. However, from a total return
perspective, bonds as an asset class did not do well in 1999.
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 valuation 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 outperformed growth stocks. We look forward to
the market's renewed focus on earnings and valuations.
CONTINUED GROWTH OF ASSETS
Assets in the Harris Insight Funds grew significantly in 1999, rising to $7.7
billion by December 31, 1999.
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 the relationship we have 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 and Chief Financial Officer
THE HARRIS INSIGHT FAMILY OF MUTUAL FUNDS
INVESTMENT ADVISER: HARRIS TRUST AND SAVINGS BANK
PORTFOLIO MANAGEMENT AGENT: HARRIS INVESTMENT MANAGEMENT, INC.
DISTRIBUTOR: PROVIDENT DISTRIBUTORS, INC.
2
<PAGE>
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS PAGE 1
THE MARKET ENVIRONMENT
Economic Review Page 4
Fixed Income Markets Review Page 6
Equity Markets Review Page 7
PORTFOLIO MANAGEMENT REVIEW
Fund Summaries PAGE 8-24
TAX INFORMATION -- FIXED INCOME AND EQUITY FUNDS PAGE 25
STATEMENTS OF NET
ASSETS/SCHEDULES OF INVESTMENTS
MONEY MARKET FUNDS:
Government Money Market Fund Page 26
Money Market Fund Page 27
Tax-Exempt Money Market Fund Page 29
FIXED INCOME FUNDS:
Short/Intermediate Bond Fund Page 33
Bond Fund Page 37
Intermediate Government Bond Fund Page 41
Intermediate Tax-Exempt Bond Fund Page 43
Tax-Exempt Bond Fund Page 47
Convertible Securities Fund Page 50
EQUITY FUNDS:
Equity Fund Page 54
Equity Income Fund Page 57
Growth Fund Page 60
Small-Cap Opportunity Fund Page 63
Small-Cap Value Fund Page 67
Index Fund Page 70
Balanced Fund Page 77
International Fund Page 82
Emerging Markets Fund Page 85
STATEMENTS OF OPERATIONS PAGE 88
STATEMENTS OF CHANGES IN NET ASSETS PAGE 90
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY PAGE 94
FINANCIAL HIGHLIGHTS PAGE 100
NOTES TO FINANCIAL STATEMENTS PAGE 110
REPORT OF INDEPENDENT ACCOUNTANTS PAGE 121
RESULTS OF SPECIAL MEETINGS OF SHAREHOLDERS PAGE 122
<PAGE>
THE MARKET ENVIRONMENT
ECONOMIC REVIEW
DECEMBER 31, 1999
ECONOMY
As 2000 begins, the U.S. economy faces two immediate situations and a distant
threat. The highly publicized Y2K computer glitch was the first hurdle of the
new year. Thankfully, due to considerable work, new computer investments and
luck, this event largely turned out to be nothing. The only reported problem,
thus far, has been the malfunctioning of a U.S. spy satellite.
The second event is much more positive. The U.S. is within a few months of its
largest expansion on record. This expansion has seen sharply rising corporate
profits, record job growth, continued low inflation and a spectacularly rising
stock market. It has also seen a decline in Federal spending, sharply higher
private borrowing and an explosion in electronic commerce. However, there are
clouds forming on the horizon that may threaten the continuation of this
expansion.
It is said that the Federal Reserve's job is "to remove the punch bowl" when the
party really gets going. Chairman Greenspan has clearly indicated that the Fed
is concerned about developing inflationary pressures resulting from the rapid
pace of economic growth. While there are conflicting views with regard to the
Fed's conclusions, one thing seems certain. The Fed will, presumably, continue
to raise short-term interest rates until the economy slows.
At this time, it appears the economy remains strong and that the Fed is likely
to raise interest rates at its February meeting. Further increases are possible
depending upon whether the economy's momentum slows. The risks are twofold.
First, has the Fed waited too long to act and will we experience a meaningful
acceleration in inflation? Second, is the Fed overreacting to inflation concerns
and, as a result, likely to end the expansion through its actions? Only time
will tell.
At the moment, business conditions remain strong with only small signs of
accelerating growth in the auto and housing sectors. This is not surprising
given that both sectors are interest-rate sensitive and that the Fed is
tightening. However, once we get past the seasonally strong first-quarter
spending period (401(k) payments, bonuses, etc.), the direction of the economy
will become clearer. Until then, we can sit back and hope the Fed governors will
do the right thing. Based upon their past record over this economic cycle, it
appears to be a good bet that they will.
FINANCIAL MARKETS
As 1999 ended, stock-market indices surged to record levels. In particular, the
NASDAQ Composite Index (dominated by large technology companies) rose sharply to
produce a gain of over 85% for the year! What is interesting is that the rise in
stock prices occurred despite the steady increase in bond yields during the
year. This apparent "disconnect" between interest rates and stock prices has
prompted many observers to conclude that previous valuation rules no longer
apply in today's information-driven economy.
4
<PAGE>
THE MARKET ENVIRONMENT
ECONOMIC REVIEW
DECEMBER 31, 1999 (CONTINUED)
Up to now this has certainly appeared to be true. However, it is unlikely that
the stock market will continue to ignore rising interest rates. Higher interest
rates can become a significant obstacle to continued economic growth as
borrowing costs rise and the return on new business investment declines. With
the high probability of even higher rates in 2000, the economy could begin to
slow, worsening the outlook for corporate earnings growth. If this occurs,
investors could become concerned, particularly because earnings estimates
continue to remain somewhat optimistic.
Despite the possibility of rising rates and earnings disappointments, however,
the outlook remains relatively positive. Foreign economies are recovering, trade
restrictions are being lowered, and inflation remains low. The risks facing
investors appear more cyclical than secular in nature and are prompted more by
tightening credit conditions than by the long-term outlook for growth.
Therefore, although the narrow leadership of the stock market may broaden into
other sectors and while market volatility should remain high, the fundamental
outlook for equities continues to be favorable. Equally, bond investors may have
to endure a further rise in yields. However, inflationary pressures appear
modest, driven more by rising commodity prices than by irresponsible monetary
policy. Bond yields are likely to move lower once the economy's momentum begins
to slow.
All in all, investors face some significant uncertainties in 2000. However, none
of them appears to be insurmountable. Barring a major mistake by the Fed, the
long-term outlook for both the economy and the financial markets remains sound.
DAVID L. MEAD
Vice President and Chief Investment Officer
Harris Trust and Savings Bank
5
<PAGE>
THE MARKET ENVIRONMENT
FIXED INCOME MARKETS REVIEW
DECEMBER 31, 1999
More than in most years, 1999's bond market action was determined by events of
the prior year. Responding to the frightening liquidity crisis in late 1998,
central banks around the world loosened the monetary purse strings. The desired
effect was achieved in 1999 as the crisis abated, economic activity in Asia
rebounded sharply, and the U.S. economy maintained its rapid pace.
In this environment, one would expect interest rates to rise. In fact, the
Federal Reserve raised the Fed Funds target three times in 1999, for an increase
from 4.75% to 5.5%. Yields on long-term U.S. Treasury bonds, which began the
year at 5.09%, rose to a surprising 6.48%. As a result, the total return on long
Treasuries was -8.74%. As the chance of a global recession lessened, riskier
bonds outperformed. A strong economy usually means improving credit quality and
thus, not surprisingly, the lower-quality bonds produced the best returns for
the year. It was not enough to offset the effect of rising rates, however, and
the total investment-grade bond market finished the year with a -0.82% return.
The coming year will undoubtedly be an interesting one for bond investors.
Normally, in such a strong growth environment we would feel comfortable calling
for higher interest rates and continued outperformance from corporate bonds and
other credit sensitive securities relative to government issues. However, last
year's dose of liquidity, while successful, will not be without its
side-effects. Our economy continues to grow at rates that most believe will lead
to higher inflation if unchecked. The stock market is fully valued by
traditional measures, and the amount of risk-taking in the system continues to
increase in the form of leverage, margin debt, etc. Policy makers will be
walking a fine line. If they apply the brakes too forcefully, a serious decline
in stock prices could be the result. In that case, we would expect interest
rates to decline sharply and the highest quality bonds to outperform -- exactly
the opposite of our base case forecast. Success in the year 2000 will almost
certainly be a matter of staying on the right side of this fine line.
MARK E. NEWLIN, C.F.A.
Director of Fixed Income Management
Harris Investment Management, Inc.
6
<PAGE>
THE MARKET ENVIRONMENT
EQUITY MARKETS REVIEW
DECEMBER 31, 1999
1999 was a perverse year for the equity markets in the U.S. as the S&P 500 Index
produced another 20%-plus return for the fifth consecutive year. A number of
trends continued from the prior year and a host of new records was established.
Most significantly, in the face of rising interest rates and accelerating
earnings growth, the equity market continued its focus on growth stocks and
exhibited a very strong preference for technology companies. Historically, when
interest rates have risen, more value-oriented issues with lower price/earnings
ratios have outperformed. Additionally, as earnings gains have been more broadly
based in the economy, more cyclically-oriented companies have tended to
outdistance growth stocks.
The very narrow focus of the equity market on a limited list of issues, which in
most instances were technology-driven companies, is apparent in reviewing
several market statistics. Although the S&P 500 Index returned 21% for the year,
the average stock in the Index returned only 1.6%. The NASDAQ Index, which is
dominated by technology companies, returned 86% for the year. While this is the
largest gain ever recorded by the NASDAQ, it pales in comparison to the Dow
Jones Internet Index that appreciated 167.3% for the year.
While the economic backdrop for the equity markets continues, on balance, to be
positive, good gains in corporate profits will be derived in an environment of
modestly higher inflation and higher interest rates. This environment should, in
turn, negatively impact the market multiples leading to more moderate market
returns in 2000. Within the broad market, opportunities would appear to be most
prevalent in value-oriented issues and smaller-capitalization issues. An event
that could be a precursor of the future is that smaller companies, as measured
by the Russell 2000, actually outperformed large companies for the first time
since 1993. Small companies continue to sell at historically attractive
valuation spreads relative to the S&P 500. Globally, opportunities appear to
exist in Asia and a number of emerging market countries.
WILLIAM O. LESZINSKE
President and Chief Investment Officer
Harris Investment Management, Inc.
7
<PAGE>
FUND SUMMARY
MONEY MARKET FUNDS
DECEMBER 31, 1999
GOVERNMENT MONEY MARKET FUND
INVESTMENT OBJECTIVE: The Fund seeks to provide investors with as high a level
of current income as is consistent with its investment policies and with
preservation of capital and liquidity. The Fund invests exclusively in U.S.
Government securities that have remaining maturities of 397 days or less and
certain repurchase agreements.
INVESTMENT RESULTS: This Fund enjoyed another year of strong performance. Both
classes of shares ranked within the top quartile of their respective Lipper
universes for 1999. The Institutional Shares ranked in the top quartile for the
three- and five-year periods. The N Shares remain in the top quartile over
three-, five- and ten-year periods.
1999 proved to be a very challenging period for the management of
government money market funds. The short-term government market continues to be
driven by technical factors of supply. The increasing budget surplus has led to
a reduction in the supply of Treasury bills, resulting in lower relative yields.
Throughout the year, the yield on Treasury bills vacillated slightly above or
below the Fed Funds' target. The fact that one-year bill yields were, at times,
below the Fed Funds' target is indicative of a falling-rate environment, not the
rising-rate scenario we experienced.
The Fund was able to exploit several opportunities to purchase longer-term
securities that added incremental yield. During the first quarter, purchases of
one-year agency issues lengthened the average maturity of the Fund and increased
the yield relative to its peers. Floating-rate instruments were added in the
second and third quarters to defend against rising interest rates. As the Fed
continued to raise rates, the average maturity of the Fund was allowed to
decline. That strategy was reversed in December when purchases of one-year
securities could be made with significant protection against future rate
increases.
MONEY MARKET FUND
INVESTMENT OBJECTIVE: The Fund seeks to provide investors with as high a level
of current income as is consistent with its investment policies and with
preservation of capital and liquidity. The Fund invests in a broad range of
money market instruments that have remaining maturities of 397 days or less.
INVESTMENT RESULTS: For 1999, as rated by Lipper Analytical Services, the Fund's
N Shares ranked in the top 10% and the Institutional Shares of the Fund ranked
number one in its universe. The Institutional Shares are now in the top decile
for both the three- and five-year periods. The N Shares remain in the top
quartile over three-, five- and ten-year periods.
Much of the Fund's success was due to timely shifts in the Fund's
average-days-to-maturity. Early in the year, investors were paid an attractive
incremental yield to extend into the longer end of the money market curve (one
year). That scenario was repeated late in the second quarter, as investors
demanded a higher return in the face of rising rates. The average maturity of
the Fund was allowed to decline during the third quarter as the Fed continued to
raise interest rates. This defensive strategy was carried out through the
purchase of floating-rate instruments. Again in December, the Fund's maturity
was extended with purchases of one-year securities that provided protection
against a series of further Fed increases.
8
<PAGE>
FUND SUMMARY
MONEY MARKET FUNDS
DECEMBER 31, 1999 (CONTINUED)
TAX-EXEMPT MONEY MARKET FUND
INVESTMENT OBJECTIVE: The Fund seeks to provide investors with as high a level
of current income (exempt from federal income taxes) as is consistent with its
investment policies and with preservation of capital and liquidity. The Fund
invests primarily in high-quality municipal obligations that have remaining
maturities of 397 days or less.
INVESTMENT RESULTS: The good performance of the Fund continued throughout 1999.
For the trailing twelve months, the N Shares ranked in the 66th percentile and
the Institutional Shares in the top third of their respective universes. The
Institutional and N Shares remain in the top 50 percent for the three- and
five-year periods.
During 1999, tax-free funds experienced erratic cash flows, and maintaining
liquidity in the money funds was more challenging than usual. Money managers
were reluctant to extend large portions of their portfolios. First, liquidity
was needed to meet corporate and individual tax payments. Second, money managers
were unsure what to expect with the uncertainties surrounding Y2K. In order to
manage those events, the average-days-to-maturity for tax-free funds were
shorter than in years past. Accordingly, the Harris Insight Tax-Exempt Money
Market Fund was heavily weighted in variable rate products throughout the year.
That helped handle the inconsistent cash flows that were a result of the above
factors. The purchase of term securities (i.e., securities with 9 to 13 month
maturities) was limited to high-quality rated and non-rated notes.
Looking ahead to the first quarter of 2000, the Fed has maintained a
neutral bias but will be ready to take action should inflation start to
accelerate. Yields on variable rate products, which looked so attractive at
year-end, will plummet as coupon interest payments flow into the money market
funds. The Fund will look to modestly extend average-days-to-maturity with the
purchase of commercial paper and short term notes.
An investment in the Harris Insight Money Market Funds is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the Fund.
A portion of income from the Tax-Exempt Money Market Fund may be subject to some
state and/or local taxes and, for certain investors, a portion may be subject to
the federal alternative minimum tax.
9
<PAGE>
FUND SUMMARY
SHORT/INTERMEDIATE BOND FUND
PERFORMANCE BENCHMARK: Lehman Brothers Intermediate Government/Corporate Bond
Index -- A weighted composite of (I) the Lehman Brothers Intermediate Government
Bond Index, which is comprised of all publicly issued, non-convertible debt of
the U.S. Government or any agency thereof, quasi-federal corporations, and
corporate debt guaranteed by the U.S. Government with a maturity of between one
and ten years and (II) the Lehman Brothers Corporate Bond Index, which is
comprised of all public fixed-rate, non-convertible investment-grade domestic
corporate debt with a maturity of between one and ten years excluding
collateralized mortgage obligations.
INVESTMENT OBJECTIVE: The Fund seeks to provide a high level of total return,
including a competitive level of current income. The Fund seeks to achieve its
investment objective by investing primarily in investment grade debt securities
with a short/intermediate term average maturity.
INVESTMENT RESULTS: 1999 was a challenging year for bond investors. As financial
conditions strengthened globally, a vigilant Federal Reserve focused its efforts
on preempting any rise in inflation. Tightening short-term rates by twenty-five
basis points on three occasions, the Fed triggered a broad sell-off in bonds. In
contrast to 1998, intermediate-term bonds were the hardest hit as the yield
curve re-shaped and intermediate rates rose 1.8% versus a more muted rise of
1.35% for long-term bonds. Despite 1999's bear market back-drop, the Harris
Insight Short/ Intermediate Bond Fund posted positive returns for the year and
outdistanced the returns of its market benchmark, the Lehman Intermediate
Government/Corporate Index.
For the year as a whole, much of the Fund's success can be attributed to
its sector allocation. Heavily overweighted to corporate bonds, mortgages and
asset-backed instruments, the Fund benefited from a sharp rebound in each of
those investment categories. In particular, with Y2K fears dissipating, the
fourth quarter witnessed a huge resurgence of investor appetite for yield over
liquidity. Attracted by substantial yield pick-ups, investors sold treasuries
and bought spread products (i.e., corporates, mortgages, etc.). Having
recognized the value offered by the non-Treasury sectors early in the year, the
Fund was well positioned to profit from their outperformance.
Going forward into 2000, in anticipation of still higher interest rates,
the Fund is positioned defensively, short the duration of its benchmark index.
Overweighting to the non-Treasury sectors for now remains intact, although we
will pare down positions should those sectors become overvalued.
GROWTH OF A $10,000 INVESTMENT IN THE SHORT/INTERMEDIATE BOND FUND AND
THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE
BOND INDEX FROM INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INDEX INSTITUTIONAL SHARES
Feb. '96 $10,000 $ 9,948
Mar. '96 9,949 9,888
Jun. '96 10,011 9,948
Sep. '96 10,189 10,114
Dec. '96 10,439 10,361
Mar. '97 10,427 10,355
Jun. '97 10,735 10,656
Sep. '97 11,024 10,942
Dec. '97 11,260 11,102
Jun. '98 11,650 11,472
Dec. '98 12,208 11,881
Dec. '99 12,256 11,978
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INDEX N SHARES A SHARES
Apr. '91 $10,000 $10,020 $ 9,650
Dec. '91 11,308 11,104 10,718
Dec. '92 12,165 11,690 11,283
Dec. '93 13,510 12,848 12,401
Dec. '94 13,036 12,682 12,241
Dec. '95 15,544 14,443 13,941
Dec. '96 15,995 14,949 14,430
Dec. '97 17,556 15,979 15,424
Dec. '98 19,034 17,057 16,465
Dec. '99 19,108 17,153 16,557
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR INCEPTION**
- ----------------------------------------------------
Institutional Shares 0.81% -- 4.79%
N Shares 0.56% 6.23% 6.35%
A Shares -2.92% 5.47% 5.93%
- ----------------------------------------------------
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions. The results for the A Shares of the
Fund assume an initial sales charge of 3.50%.
** The inception date for the Fund's performance is February 26, 1996 with
respect to the Institutional Shares, and April 1, 1991 with respect to the N
Shares and A Shares. Inception for the Index begins on the month-end closest
to the inception date of the Fund (or class thereof).
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
10
<PAGE>
FUND SUMMARY
BOND FUND
PERFORMANCE BENCHMARK: Lehman Brothers Aggregate Bond Index -- An index composed
of the Lehman Government/Corporate Index and the Mortgage-Backed Securities
Index including Treasury issues, agency issues, corporate bond issues and
mortgage-backed securities.
INVESTMENT OBJECTIVE: The Fund seeks to provide a high level of total return,
including a competitive level of current income. The Fund seeks to achieve its
investment objective by investing primarily in investment grade debt securities
of varying maturities.
INVESTMENT RESULTS: Despite a turbulent year for fixed-income investors, 1999
was a strong year for the Harris Insight Bond Fund. Positioned defensively for
most of the year, the Fund was well set for what became a bear market for bonds.
In 1999, the Federal Reserve was on the move. Seeking to preempt any
nascent inflation, the Fed raised short-term rates by 75 basis points and, in
doing so, triggered a massive sell-off in bonds. Indeed, with intermediate-term
yields ending the year 2.25% above their 1998 lows, 1999 goes down as the second
worse year for bonds since 1974. Nonetheless, the Bond Fund's strategy --
overweighting "yield" products such as corporate bonds and maintaining a reduced
exposure to interest rate risk compared with its index (i.e., being short
duration) -- proved to be a winning combination. In 1999, the Fund ranked 23rd
out of 164 funds in its Lipper Corporate Debt Funds A-Rated fund category.
Anticipating the high relative yields offered outside the Treasury market,
the Fund entered 1999 overweighted in mortgages, asset-backed instruments and
corporate bonds. With investor demand for yield replacing 1998's demand for
liquidity, the Fund's sector strategy was ideal as each of the non-Treasury
sectors outperformed in 1999.
Going forward into the year 2000, we have moderated the Fund's defensive
bias. For now, the Fund is positioned duration neutral to its benchmark. As for
the Fund's sector strategy, an overweight of the non-Treasury sectors remains
intact. In particular, corporate bonds continue to offer greater value than
their Treasury-market alternatives.
GROWTH OF A $10,000 INVESTMENT IN THE BOND FUND AND THE LEHMAN
BROTHERS AGGREGATE BOND INDEX FROM INCEPTION THROUGH DECEMBER 31, 1999.
INSTITUTIONAL
INDEX SHARES N SHARES A SHARES
Apr. '96 $10,000 $ 9,972 $ 9,973 $ 9,550
Dec. '96 10,609 10,540 10,526 10,054
Dec. '97 11,636 11,532 11,488 10,972
Dec. '98 12,645 12,353 12,276 11,725
Dec. '99 12,541 12,241 12,134 11,589
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR INCEPTION**
- -------------------------------------------------------
Institutional Shares -0.91% 5.60%
N Shares -1.16% 5.36%
A Shares -5.60% 4.06%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions. The results for the A Shares of
the Fund assume an initial sales charge of 4.50%.
** The inception date for the Fund's performance is April 16, 1996 with respect
to the Institutional Shares, and April 22, 1996 with respect to the N Shares
and A Shares. Inception for the Index begins on the month-end closest to the
inception date of the Fund (or class thereof).
Performance figures represent past performance and are not a guarantee of
future results. The investme nt return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
11
<PAGE>
FUND SUMMARY
INTERMEDIATE GOVERNMENT BOND FUND
PERFORMANCE BENCHMARK: Lehman Brothers Intermediate Government Bond Index -- An
index comprised of all public obligations of the U.S. Treasury, excluding flower
bonds and foreign targeted issues, all publicly issued debt of U.S. Government
agencies and quasi-federal corporations and corporate debt guaranteed by the
U.S. Government. All issues have maturities between 1 and 9.9997 years and an
outstanding par value of at least $100 million dollars. Price, coupon and total
return are reported on a month-end to month-end basis.
INVESTMENT OBJECTIVE: The Fund seeks to provide a high level of current income,
consistent with the preservation of capital, by investing primarily in U.S.
Government securities having an intermediate-term average maturity.
INVESTMENT RESULTS: 1999 proved to be a disappointment for bond investors as
returns in most maturities were negative for only the second time in 24 years.
Spurred on by continued economic strength, the Federal Reserve raised rates
three times during the year, resulting in a 30-year bond yield of 6.48% at
year-end, 1.38% higher than at the beginning of 1999. Besides the negative
returns, the increase in rates also significantly changed the shape of the yield
curve. The spread between 2- and 30-year bonds narrowed by 31 basis points to
close the year at a mere 25 basis-point spread between short and long rates.
However, in spite of the bear market in Treasury securities, all was not
negative in the fixed-income markets. For spread products, 1999 was a bull
market. Agency, mortgage and asset-backed securities all delivered excess
returns relative to Treasuries, a marked change from 1998. A market no longer
suffering the ill effects of a global crisis and hedge fund demise returned
investors to the fold, producing a year for spread products that was one of the
decade's best.
The Fund was heavily invested in spread securities while maintaining an
all-AAA (S&P rating) portfolio throughout the year. This commitment, combined
with a duration position that was short for most of the rate rise, produced a
return of -.80% which bested the Fund's Lipper Intermediate U.S. Government
Funds category average by 88 basis points. The above-average return placed the
Fund in the top quartile of funds in its category.
Looking forward, the Fund will remain committed to spread securities, as
the excess yield levels are still compelling. The Fund's duration is currently
neutral versus its benchmark and will be adjusted depending on the portfolio
management agent's interest rate model forecast.
GROWTH OF A $10,000 INVESTMENT IN THE INTERMEDIATE GOVERNMENT BOND FUND
AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND INDEX FROM INCEPTION
THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INSTITUTIONAL
INDEX SHARES N SHARES A SHARES
Jan. '85 $10,000 $10,185 $10,197 $ 9,650
Dec. '85 11,801 11,706 11,689 11,282
Dec. '86 13,343 13,209 13,148 12,690
Dec. '87 13,824 13,666 13,574 13,101
Dec. '88 14,709 14,578 14,443 13,940
Dec. '89 16,575 16,368 16,180 15,617
Dec. '90 18,160 17,889 17,623 17,009
Dec. '91 20,719 20,304 19,967 19,272
Dec. '92 22,154 23,480 21,262 20,522
Dec. '93 23,967 23,091 22,984 22,184
Dec. '94 23,548 23,361 22,541 21,756
Dec. '95 26,945 26,199 25,492 24,604
Dec. '96 28,038 27,264 26,475 25,554
Dec. '97 30,203 29,396 28,476 27,485
Dec. '98 32,764 31,587 30,522 29,460
Dec. '99 32,925 31,334 30,202 29,151
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR 10 YEAR INCEPTION**
- ----------------------------------------------------------------
Institutional Shares -0.80% 6.30% 6.71% 7.91%
N Shares -1.05% 6.03% 6.44% 7.64%
A Shares -4.50% 5.27% 6.06% 7.39%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gains distributions. The results for the A Shares of
the Fund assume an initial sales charge of 3.50%.
** The inception date for the Fund's performance with respect to the
Institutional Shares, N Shares and A Shares is January 1, 1985. Inception for
the index begins on the month-end closest to the inception date of the Fund
(or class thereof).
Performance information includes the performance of the Intermediate
Government Bond Fund's predecessor collective fund for periods before the
Fund commenced operations. Performance for the collective fund has been
adjusted to reflect the Fund's estimate of its expense ratio for the first
year of operations as a mutual fund. The collective fund was not registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), or
subject to certain investment restrictions that are imposed by the 1940 Act.
If the collective fund had been registered under the 1940 Act, its
performance may have been adversely affected. The collective fund did not
impose any charges that correspond to the advisory and other fees of the
Intermediate Government Bond Fund. Therefore, the quoted performance figures
for the collective fund have been reduced to reflect expenses of 0.50%, 0.75%
and 0.75%, the estimated expense ratios of the Institutional Shares, N Shares
and A Shares of the Intermediate Government Bond Fund, respectively, at the
inception of its operations.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
12
<PAGE>
FUND SUMMARY
INTERMEDIATE TAX-EXEMPT BOND FUND
PERFORMANCE BENCHMARK: Lehman Brothers Quality Intermediate Municipal Bond Index
- -- An index comprised of 22,839 bonds. The bonds are rated A or better, have
maturities between 2 and 17 years, and are selected from issues larger than $50
million dated since January 1986.
Lehman Brothers 3-15 Year Blend Municipal Index -- An index comprised of
40,278 bonds. The bonds are investment-grade or better, have maturities between
2 and 17 years, and are selected from issues larger than $50 million dated since
1991.
INVESTMENT OBJECTIVE: The Fund seeks to provide a high level of current income
that is exempt from federal income tax. The Fund seeks to achieve its investment
objective by investing, under normal market conditions, at least 80% of its
assets in municipal securities with a dollar weighted average portfolio maturity
of between 3 and 10 years.
INVESTMENT RESULTS: The Fed raised short-term interest rates three times during
the year, thereby sending municipal bond prices lower. In fact, municipal bonds
were among the worst-performing asset categories measured by Lipper. Year-end
tax loss selling by individuals resulted in record redemptions from mutual
funds, further compounding price deterioration.
In the face of rising interest rates the Fund performed extremely well. Our
overweight in premium coupons and quality AAA bonds (S&P rating) contributed to
price stability. The Fund ranked in the top 10% of all funds in the Lipper
Intermediate Municipal Debt Funds category for the year. Within the general
disarray of the municipal market, which saw municipal yields rise by over 90
basis points during the year, the Fund found several opportunities. Primarily,
we were able to find bonds with higher yields while maintaining quality ratings.
As the year 2000 begins with continued signs of a stronger economy and
building inflation, higher interest rates are anticipated. Going forward, we
will continue to emphasize our past successes in quality security selection
combined with premium bond structures. Our defensive bias is balanced by
emphasizing the 10- to 15-year sector of the yield curve. We anticipate moderate
new issuance, with cities and states deferring new borrowing in the higher
interest rate environment. The Fund is positioned well with an overweight in
states that should issue little supply, resulting in higher prices.
GROWTH OF A $10,000 INVESTMENT IN THE INTERMEDIATE TAX-EXEMPT BOND FUND, THE
LEHMAN BROTHERS QUALITY INTERMEDIATE MUNICIPAL BOND INDEX AND LEHMAN BROTHERS
3-15 YEAR BLEND MUNICIPAL INDEX FROM INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
LB QUALITY LB 3-15
INTERMEDIATE YEAR BM INSTITUTIONAL
INDEX INDEX*** SHARES N SHARES
Jan. '86 $10,000 $10,000 $10,051 $10,048
Dec. '86 10,000 10,000 10,940 10,915
Dec. '87 10,368 10,368 10,920 10,869
Dec. '88 11,034 11,034 11,419 11,338
Dec. '89 12,101 12,101 12,345 12,227
Dec. '90 13,011 13,011 13,128 12,970
Dec. '91 14,460 14,460 14,576 14,364
Dec. '92 15,517 15,517 15,562 15,298
Dec. '93 17,055 17,055 16,892 16,565
Dec. '94 16,589 16,444 16,371 16,013
Dec. '95 18,878 18,963 18,283 17,839
Dec. '96 19,683 19,809 18,843 18,340
Dec. '97 21,123 21,459 20,050 19,465
Dec. '98 22,390 22,824 21,040 20,375
Dec. '99 22,455 22,717 20,948 20,237
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR 10 YEAR INCEPTION**
- -----------------------------------------------------------
Institutional Shares -0.43% 5.05% 5.43% 5.42%
N Shares -0.68% 4.79% 5.17% 5.16%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions.
** The inception date for the Fund's performance with respect to both of the
Institutional Shares and N Shares is January 1, 1986. Inception for the
Index begins on the month-end closest to the inception date of the Fund (or
class thereof).
Performance information includes the performance of the Intermediate
Tax-Exempt Bond Fund's predecessor common trust fund for periods before the
Fund commenced operations. Performance for the common trust fund has been
adjusted to reflect the Fund's estimate of its expense ratio for the first
year of operations as a mutual fund. The common trust fund was not
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), or subject to certain investment restrictions that are imposed by the
1940 Act. If the common trust fund had been registered under the 1940 Act,
its performance may have been adversely affected. The common trust fund did
not impose any charges that correspond to the advisory and other fees of the
Intermediate Tax-Exempt Bond Fund. Therefore, the quoted performance figures
for the common trust fund have been reduced to reflect expenses of 0.80% and
1.05%, the estimated expense ratios of the Institutional Shares and N Shares
of the Intermediate Tax-Exempt Bond Fund, respectively, at commencement of
operations.
*** The Fund's primary benchmark is now the Lehman Brothers 3-15 Year Blend
Municipal Index. This index better reflects the investment objectives and
policies of the Fund.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
A portion of income may be subject to some state and/or local taxes and, for
certain investors, a portion may be subject to the federal alternative
minimum tax.
13
<PAGE>
FUND SUMMARY
TAX-EXEMPT BOND FUND
PERFORMANCE BENCHMARK: Lehman Brothers Municipal Bond Index -- An index
comprised of 40,342 bonds. The bonds are all investment-grade, fixed-rate,
long-term maturities (greater than two years) and are selected from issues
larger than $50 million dated since January 1980.
INVESTMENT OBJECTIVE: The Fund seeks to provide a high level of current income
that is exempt from federal income tax. The Fund seeks to achieve its investment
objective by investing at least 80% of its assets, under normal market
conditions, in a broad range of municipal bonds and other obligations issued by
state and local governments to finance their operations or special projects.
INVESTMENT RESULTS: The Fed raised short-term interest rates three times during
the year, thereby sending municipal bond prices lower. In fact, municipal bonds
were among the worst-performing asset categories measured by Lipper. Year-end
tax loss selling by individuals resulted in record redemptions from mutual
funds, further compounding price deterioration.
In the face of rising interest rates the Fund performed extremely well. Our
overweight in premium coupons and quality AAA bonds (S&P rating) contributed to
price stability. The fund ranked in the top 10% of all funds in the Lipper
General Municipal Debt Funds category for the year. Within the general disarray
of the municipal market, which saw municipal yields rise by over 90 basis points
during the year, the Fund found several opportunities. Primarily, we were able
to find bonds with higher yields while maintaining quality ratings.
As the year 2000 begins with continued signs of a stronger economy and
building inflation, higher interest rates are anticipated. Going forward, we
will continue to emphasize our past successes in quality security selection
combined with premium bond structures. Our defensive bias is balanced by
emphasizing the 15- to 20-year sector of the yield curve. We anticipate moderate
new issuance, with cities and states deferring new borrowing in the higher
interest rate environment. The fund is positioned well with an overweight in
states that should issue little supply, resulting in higher prices.
GROWTH OF A $10,000 INVESTMENT IN THE TAX-EXEMPT BOND FUND AND THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX FROM INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INSTITUTIONAL
INDEX SHARES N SHARES
Jan. '85 $10,000 $10,154 $10,152
Dec. '85 12,003 11,814 11,785
Dec. '86 14,321 13,887 13,819
Dec. '87 14,537 13,372 13,273
Dec. '88 16,014 14,729 14,584
Dec. '89 17,742 16,330 16,129
Dec. '90 19,035 17,245 16,990
Dec. '91 21,346 19,247 18,916
Dec. '92 23,228 20,857 20,447
Dec. '93 26,081 23,558 23,037
Dec. '94 24,733 21,838 21,302
Dec. '95 29,050 24,993 24,319
Dec. '96 30,337 25,932 25,153
Dec. '97 33,125 28,148 27,235
Dec. '98 35,272 29,522 28,493
Dec. '99 34,545 28,615 27,549
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR 10 YEAR INCEPTION**
- --------------------------------------------------------------
Institutional Shares -3.07% 5.55% 5.77% 7.26%
N Shares -3.31% 5.28% 5.50% 6.99%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions.
** The inception date for the Fund's performance with respect to both of the
Institutional Shares and N Shares is January 1, 1985. Inception for the
Index begins on the month-end closest to the inception date of the Fund (or
class thereof). Performance information includes the performance of the
Tax-Exempt Bond Fund's predecessor common trust fund for periods before the
Fund commenced operations. Performance for the common trust fund has been
adjusted to reflect the Fund's estimate of its expense ratio for the first
year of operations as a mutual fund. The common trust fund was not
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), or subject to certain investment restrictions that are imposed by the
1940 Act. If the common trust fund had been registered under the 1940 Act,
its performance may have been adversely affected. The common trust fund did
not impose any charges that correspond to the advisory and other fees of the
Tax-Exempt Bond Fund. Therefore, the quoted performance figures for the
common trust fund have been reduced to reflect expenses of 0.80% and 1.05%,
the estimated expense ratios of the Institutional Shares and N Shares of the
Tax-Exempt Bond Fund, respectively, at commencement of operations.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
A portion of income may be subject to some state and/or local taxes and, for
certain investors, a portion may be subject to the federal alternative
minimum tax.
14
<PAGE>
FUND SUMMARY
CONVERTIBLE SECURITIES FUND
PERFORMANCE BENCHMARK: Credit Suisse First Boston Convertible Securities Index
- -- An index comprised of an unmanaged group of domestic convertible bonds and
preferred stocks with a Standard & Poor's rating of B- or better and a minimum
issue size of $50 million, and dollar-denominated Euroconvertibles issued by
U.S. domiciled companies and having a Standard & Poor's rating of B- or better
and a minimum issue size of $100 million.
INVESTMENT OBJECTIVE: The Fund seeks to provide capital appreciation and current
income by investing primarily in securities such as bonds, debentures, notes,
preferred stocks or warrants that are convertible into, or provide an option to
purchase, common stocks.
INVESTMENT RESULTS: The convertible securities market's performance continued to
be driven by large-capitalization technology issues. The Credit Suisse First
Boston Convertible Securities Index gained 42.29% for the year, propelled by a
handful of explosive issues. The Qualcomm* convertible preferred issue alone
accounted for almost 12% of the total return of the convertible index. America
Online* and EMC* convertible bonds were two other technology issues that
combined large index weightings with stellar returns. On a sector basis,
telecommunication, computer software and Internet convertibles led the market in
performance and new issuance. New issuance was strong almost all year and
continued right up until the last days of the year. The surging equity market
stoked demand for new issues, especially in the fourth quarter.
Growth was also in demand in 1999, and earnings multiples soared for many
companies that forecasted future earnings growth and little else. Current
earnings took a back seat as investors bid up low- or no-earnings companies to
unprecedented levels. Value had a brief surge in the spring, but by early fall
the market was once again rewarding growth stocks and their corresponding
convertible issues. The Internet-related convertibles were an example of this
trend as service providers, online retailers and content providers all saw their
underlying equities climb during the year.
The Fund returned 32.07% for the year, reflecting more of a
value-management approach in a growth-oriented market. The Fund has tried to
seek out companies that will benefit from the Internet and advancing
technologies but stayed away from firms with no or negative earnings. This
approach has allowed the Fund to participate in the performance of the
technology sectors but in a more conservative and diversified way.
*Issues held by the Fund on December 31, 1999.
GROWTH OF A $10,000 INVESTMENT IN THE CONVERTIBLE
SECURITIES FUND AND THE CREDIT SUISSE FIRST
BOSTON CONVERTIBLE SECURITIES INDEX FROM
INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INSTITUTIONAL
INDEX SHARES N SHARES
Jan. '85 $10,000 $10,652 $10,645
Dec. '85 12,732 12,500 12,464
Dec. '86 14,988 15,625 15,561
Dec. '87 14,626 15,186 15,084
Dec. '88 16,703 17,407 17,239
Dec. '89 19,009 19,694 19,548
Dec. '90 18,536 15,678 15,446
Dec. '91 23,528 19,934 19,600
Dec. '92 26,348 23,444 22,994
Dec. '93 30,240 26,689 26,103
Dec. '94 29,583 25,864 25,226
Dec. '95 36,376 30,824 30,000
Dec. '96 40,614 37,314 36,232
Dec. '97 46,449 44,282 42,870
Dec. '98 49,491 43,483 41,995
Dec. '99 70,421 57,429 55,328
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR 10 YEAR INCEPTION**
- ------------------------------------------------------------------
Institutional Shares 32.07% 17.30% 11.30% 12.35%
N Shares 31.75% 17.01% 11.02% 12.07%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions.
** The inception date for the Fund's performance with respect to both of the
Institutional Shares and N Shares is January 1, 1985. Inception for the
index begins on the month-end closest to the inception date of the Fund (or
class thereof).
Performance information includes the performance of the Convertible
Securities Fund's predecessor collective fund for periods before the Fund
commenced operations. Performance for the collective fund has been adjusted
to reflect the Fund's estimate of its expense ratio for the first year of
operations as a mutual fund. The collective fund was not registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), or subject
to certain investment restrictions that are imposed by the 1940 Act. If the
collective fund had been registered under the 1940 Act, its performance may
have been adversely affected. The collective fund did not impose any charges
that correspond to the advisory and other fees of the Convertible Securities
Fund. Therefore, the quoted performance figures for the collective fund have
been reduced to reflect expenses of 0.92% and 1.17%, the estimated expense
ratios of the Institutional Shares and N Shares of the Convertible
Securities Fund, respectively, at the inception of its operations.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
15
<PAGE>
FUND SUMMARY
EQUITY FUND
PERFORMANCE BENCHMARK: S&P 500 Stock Index -- An index comprised of an unmanaged
group of 500 widely held common stocks traded on the New York Stock Exchange,
the American Stock Exchange and the over-the-counter market.
INVESTMENT OBJECTIVE: The Fund seeks to provide capital appreciation and current
income. The Fund seeks to achieve its investment objective by investing
primarily in common stocks of larger capitalization companies.
INVESTMENT RESULTS: 1999 was a terrible year for value investors, even for the
legendary Warren Buffett. It was a year when big was better than mid, which was
better than small. It was a year in which technology was better than anything.
It was a year in which stocks that had negative earnings were, as a group, the
best performers in the market.
Value investing is based on the long-established principle that an investor
who buys good assets cheap will do well over the long term. It is also based on
the principle that an investor who buys well-managed companies cheap will do
well over the long term. At the core of these concepts is buying cheap -- and
selling dear only if one has better alternatives. The most important thing is to
buy cheap.
With NASDAQ, the top-performing U.S. index, trading at a price-earnings
ratio of 200, buying cheap is decisively out of favor. History tells us that
manias end in pain, not gain. The new millennium may surprise day traders and
margin account speculators by marking a return to long-established investing
disciplines.
We will be there and hope you will be, too. As many of you have told us,
the Fund was a disappointment. We have responded by revising our valuation model
to include factors that work better in this economy, not by discarding our
beliefs. Early indications suggest the new analytic model is working well.
GROWTH OF A $10,000 INVESTMENT IN THE EQUITY FUND AND THE S&P 500 STOCK
INDEX FROM INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INSTITUTIONAL
INDEX SHARES
Feb. '96 $10,000 $ 9,797
Mar. '96 10,096 9,752
Jun. '96 10,552 9,973
Sep. '96 10,875 10,365
Dec. '96 11,785 11,366
Mar. '97 12,093 11,568
Jun. '97 14,209 13,197
Sep. '97 15,278 15,268
Dec. '97 15,717 15,445
Jun. '98 18,500 17,295
Dec. '98 20,209 17,577
Dec. '99 24,461 17,301
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INDEX N SHARES A SHARES
Feb. '88 $10,000 $10,200 $ 9,450
Dec. '88 10,700 10,823 10,164
Dec. '89 14,069 13,855 12,363
Dec. '90 13,623 12,765 11,299
Dec. '91 17,784 16,248 14,151
Dec. '92 19,149 17,578 14,802
Dec. '93 21,061 20,784 17,199
Dec. '94 21,337 20,537 16,338
Dec. '95 29,323 27,738 21,686
Dec. '96 36,089 34,437 26,889
Dec. '97 48,129 46,645 36,322
Dec. '98 61,884 52,904 41,156
Dec. '99 74,904 51,983 40,418
AVERAGE ANNUAL TOTAL RETURNS*
For the Period Ended 12/31/99
1 YEAR 5 YEAR 10 YEAR INCEPTION**
- ---------------------------------------------------------------------
Institutional Shares -1.57% -- -- 15.27%
N Shares -1.74% 20.62% 14.14% 14.92%
A Shares -7.19% 18.50% 11.94% 12.50%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions. The results for the A Shares of
the Fund assume an initial sales charge of 5.50%.
** The inception date for the Fund's performance is February 26, 1996 with
respect to the Institutional Shares, and February 26, 1988 with respect to
the N Shares and A Shares. Inception for the Index begins on the month-end
closest to the inception date of the Fund (or class thereof).
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
16
<PAGE>
FUND SUMMARY
EQUITY INCOME FUND
PERFORMANCE BENCHMARK: S&P 500 Stock Index -- An index comprised of an unmanaged
group of 500 widely held common stocks traded on the New York Stock Exchange,
the American Stock Exchange and the over-the-counter market.
INVESTMENT OBJECTIVE: The Fund seeks to provide current income and, secondarily,
capital appreciation. The Fund seeks to achieve its investment objective by
investing primarily in common stocks and convertible securities believed to
offer good value, an attractive yield and dividend growth potential.
INVESTMENT RESULTS: Throughout 1999, the U.S. economy remained strong. Earnings
results overall were satisfactory, inflation remained in check, and the Federal
Reserve interest rate policy of gradual rate hikes never seriously threatened
the strength of the ongoing global economic expansion. The principal concerns
during the year were inflation and the Federal Reserve's interest rate policy.
The lack of broad-based earnings strength and pricing power also weighed on the
markets and reflected intense domestic/global competition.
The U.S. equity market put many of these issues behind it and maintained
its record of generating a return in excess of 20%, as measured by the S&P 500.
The market in 1999 remained narrowly focused, with fewer than one out of three
S&P 500 issues outperforming the Index, as a "stealth" bear market occurred for
many issues. Size and sector exposure, specifically large capitalization
technology issues, generated the majority of the Index's returns for the year.
Growth-oriented technology issues, based on their relative performance,
increased their weight in the S&P 500 to over 30%. For value-oriented funds like
the Equity Income Fund, it remained a challenging year to generate competitive
returns when large-cap growth issues dominated returns.
The Fund strongly benefited from technology, retail, transportation, and
selected healthcare and communication issues. Many higher-yielding sectors, such
as utilities, financial and capital goods, detracted from performance.
GROWTH OF A $10,000 INVESTMENT IN THE EQUITY
INCOME FUND AND THE S&P 500 STOCK INDEX
FROM INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INSTITUTIONAL
INDEX SHARES N SHARES A SHARES
Jan. '94 $10,000 $10,327 $10,326 $ 9,450
Dec. '94 10,131 9,957 9,934 9,375
Dec. '95 13,923 13,625 13,559 12,783
Dec. '96 17,135 16,071 15,949 14,958
Dec. '97 22,852 21,198 20,978 19,600
Dec. '98 29,383 26,068 25,731 23,978
Dec. '99 35,565 28,641 28,221 26,293
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR INCEPTION**
- -------------------------------------------------------
Institutional Shares 9.87% 23.53% 19.16%
N Shares 9.68% 23.22% 18.87%
A Shares 3.63% 21.52% 17.47%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions. The results for the A Shares of
the Fund assume an initial sales charge of 5.50%.
** The inception date for the Fund's performance with respect to the
Institutional Shares, N Shares and A Shares is January 1, 1994. Inception
for the Index begins on the month-end closest to the inception date of the
Fund (or class thereof).
Performance information includes the performance of the Equity Income Fund's
predecessor common trust fund for periods before the Fund commenced
operations. Performance for the common trust fund has been adjusted to
reflect the Fund's estimate of its expense ratio for the first year of
operations as a mutual fund. The common trust fund was not registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), or subject
to certain investment restrictions that are imposed by the 1940 Act. If the
common trust fund had been registered under the 1940 Act, its performance
may have been adversely affected. The common trust fund did not impose any
charges that correspond to the advisory and other fees of the Equity Income
Fund. Therefore, the quoted performance figures for the common trust fund
have been reduced to reflect expenses of 0.93%, 1.18% and 1.28%, the
estimated expense ratios of the Institutional Shares, N Shares and A Shares
of the Equity Income Fund, respectively, at commencement of operations.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
17
<PAGE>
FUND SUMMARY
GROWTH FUND
PERFORMANCE BENCHMARK: S&P 500 Stock Index -- An index comprised of an unmanaged
group of 500 widely held common stocks traded on the New York Stock Exchange,
the American Stock Exchange and the over-the-counter market.
INVESTMENT OBJECTIVE: The Fund seeks to provide capital appreciation and,
secondarily, current income. The Fund seeks to achieve its investment objective
by investing primarily in common stocks and convertible securities believed to
offer above-average growth potential.
INVESTMENT RESULTS: The U.S. markets were influenced by a few dominant themes:
the equity market returns, as measured by the S&P 500 Index, were dominated by a
short list of companies, with technology and e-commerce issues pushing their
valuations beyond historic highs. The continuation of world economic growth has
led to increasing inflationary pressures and higher domestic interest rates. In
addition, the U.S. Treasury continued to generate excess liquidity, in
anticipation of Y2K.
The Fund's emphasis on value within the universe of large-cap growth issues
penalized its results for the year relative to its growth peers, as it led to
lower exposure to the narrow group of issues selling at high P/E ratios. For the
year, technology (encompassing computer equipment, software and services) and
communications were the best performing areas for the Fund. The Fund's five
best-performing issues were Oracle Corp., up 289.8%; Broadwing Inc., up 138.8%;
Applied Materials Inc., up 196.8; Adobe Systems Inc., up 187.7% and Adaptec
Inc., up 184.0%.
Looking forward, the Harris Insight Growth Fund is invested to take
advantage of a universe of dynamic growth companies that also exhibit relative
values in these sectors. This strategy has served us well historically. And, in
an environment of anticipated governmental tightening policies and reduction of
the excess year-end liquidity, the Fund is positioned to continue to exhibit
less volatility than the overall Lipper growth universe.
GROWTH OF A $10,000 INVESTMENT IN THE GROWTH
FUND AND THE S&P 500 STOCK INDEX FROM
INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INDEX INSTITUTIONAL SHARES N SHARES A SHARES
Apr. '92 $10,000 $10,000 $10,000 $ 9,450
Dec. '92 11,049 10,910 10,893 10,289
Dec. '93 12,153 11,587 11,542 10,889
Dec. '94 12,312 11,581 11,507 10,845
Dec. '95 16,920 15,801 15,668 14,760
Dec. '96 20,824 20,370 20,149 18,978
Dec. '97 27,771 27,052 26,706 25,142
Dec. '98 35,708 33,822 33,296 31,338
Dec. '99 43,221 39,424 38,697 36,437
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR INCEPTION**
- ------------------------------------------------------
Institutional Shares 16.56% 27.76% 19.45%
N Shares 16.22% 27.45% 19.16%
A Shares 9.89% 25.99% 18.24%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions. The results for the A Shares of
the Fund assume an initial sales charge of 5.50%.
** The inception date for the Fund's performance with respect to the
Institutional Shares, N Shares and A Shares is April 1, 1992. Inception for
the Index begins on the month-end closest to the inception date of the Fund
(or class thereof).
Performance information includes the performance of the Growth Fund's
predecessor common trust fund for periods before the Fund commenced
operations. Performance for the common trust fund has been adjusted to
reflect the Fund's estimate of its expense ratio for the first year of
operations as a mutual fund. The common trust fund was not registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), or subject
to certain investment restrictions that are imposed by the 1940 Act. If the
common trust fund had been registered under the 1940 Act, its performance
may have been adversely affected. The common trust fund did not impose any
charges that correspond to the advisory and other fees of the Growth Fund.
Therefore, the quoted performance figures for the common trust fund have
been reduced to reflect expenses of 1.10%, 1.35% and 1.45%, the estimated
expense ratios of the Institutional Shares, N Shares and A Shares of the
Growth Fund, respectively, at commencement of operations.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
18
<PAGE>
FUND SUMMARY
SMALL-CAP OPPORTUNITY FUND
PERFORMANCE BENCHMARK: Russell 2000 Small Stock Index -- An index of the 2,000
smallest stocks in the Russell 3000 Index. The smallest companies have a market
capitalizations approximating $178 million, whereas the largest company has a
market capitalization of $1.35 billion. The total adjusted market capitalization
of the Russell 2000 Index was $820 billion at the time of reconstruction June
1999.
INVESTMENT OBJECTIVE: The Fund seeks to provide long term capital appreciation.
The Fund seeks to achieve its investment objective by investing primarily in
equity securities of smaller capitalization companies.
INVESTMENT RESULTS: The Russell 2000 rebounded from its summer doldrums and
outperformed the S&P 500 during the second half of 1999. In fact, for the full
year the performance of the Russell 2000, up 21.26%, surpassed that of the S&P
500 by 9 basis points. This represents the first year in the last six that small
caps have outperformed the large cap index. Given the length and breadth of
underperformance of the small cap sector, however, we believe they remain poised
for an extended recovery. Small caps are cheaper than large caps using virtually
every valuation measure.
We also expect the performance divergence between growth and value to
persist. The growth industries of telecom and technology were almost entirely
responsible for the market's strength, especially during the second half.
Additionally, investors' concern with inflationary pressures and the Fed's
ongoing tightening of short-term rates depressed returns of traditional value
stocks such as financials and capital goods. Our overweight in technology and
retail as well as our underweight in financials boosted our performance well
above that of the Fund's benchmark during both the fourth quarter and for the
full year.
We are convinced that this sector allocation remains a good strategy in
2000 because the broad macro-trends persist. Demand for capital and commodities
remains high during the recovery of the global economy and will continue to put
pressure on inflation and interest rates. The world continues to shrink:
spending on technology and telecommunications should continue unabated,
notwithstanding the passage of Y2K. We will continue to emphasize those firms
whose earnings are less exposed to rising interest rates and technology firms
that are increasingly successful at expanding their sales to overseas markets.
We remain cautious with respect to investing in Internet-related stocks, seeking
companies that generate positive cash flow.
GROWTH OF A $10,000 INVESTMENT IN THE
SMALL-CAP OPPORTUNITY FUND AND THE
RUSSELL 2000 SMALL STOCK INDEX FROM
INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INSTITUTIONAL
INDEX SHARES N SHARES A SHARES
Jan. '85 $10,000 $10,515 $10,514 $ 9,450
Dec. '85 13,105 12,055 12,027 11,355
Dec. '86 13,850 13,691 13,625 12,851
Dec. '87 12,635 14,194 14,090 13,277
Dec. '88 15,781 17,624 17,452 16,428
Dec. '89 18,343 20,660 20,408 19,192
Dec. '90 14,765 18,269 18,002 16,912
Dec. '91 21,564 26,974 26,515 24,885
Dec. '92 25,534 32,100 31,475 29,511
Dec. '93 30,362 36,975 36,149 33,878
Dec. '94 29,809 35,602 34,719 32,504
Dec. '95 38,287 44,966 43,742 40,910
Dec. '96 44,602 53,421 51,849 48,453
Dec. '97 54,575 67,029 64,883 60,570
Dec. '98 53,183 67,804 65,525 61,137
Dec. '99 64,490 95,019 91,575 85,587
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR 10 YEAR INCEPTION**
- --------------------------------------------------------------
Institutional Shares 40.14% 21.69% 16.48% 16.23%
N Shares 39.75% 21.41% 16.20% 15.94%
A Shares 32.31% 20.00% 15.47% 15.42%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions. The results for the A Shares of
the Fund assume an initial sales charge of 5.50%.
** The inception date for the Fund's performance with respect to the
Institutional Shares, N Shares and A Shares is January 1, 1985. Inception
for the Index begins on the month-end closest to the inception date of the
Fund (or class thereof).
Performance information includes the performance of the Small-Cap
Opportunity Fund's predecessor common trust fund for periods before the Fund
commenced operations. Performance for the common trust fund has been
adjusted to reflect the Fund's estimate of its expense ratio for the first
year of operations as a mutual fund. The common trust fund was not
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), or subject to certain investment restrictions that are imposed by the
1940 Act. If the common trust fund had been registered under the 1940 Act,
its performance may have been adversely affected. The common trust fund did
not impose any charges that correspond to the advisory and other fees of the
Small-Cap Opportunity Fund. Therefore, the quoted performance figures for
the common trust fund have been reduced to reflect expenses of 1.20%, 1.45%
and 1.55%, the estimated expense ratios of the Institutional Shares, N
Shares and A Shares of the Small-Cap Opportunity Fund, respectively, at
commencement of operations.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
Historically, small company stocks have been more volatile than large
company stocks, U.S. Government bonds and Treasury bills.
19
<PAGE>
FUND SUMMARY
SMALL-CAP VALUE FUND
PERFORMANCE BENCHMARK: Russell 2000 Small Stock Index -- An index of the 2,000
smallest stocks in the Russell 3000 Index. The smallest companies have a market
capitalizations approximating $178 million, whereas the largest company has a
market capitalization of $1.35 billion. The total adjusted market capitalization
of the Russell 2000 Index was $820 billion at the time of reconstruction June
1999.
Russell 2000 Value Index -- An index comprised of stocks in the Russell
2000 Small Stock Index that have a lower price-to-book ratio and/or forecasted
earnings growth.
INVESTMENT OBJECTIVE: The Fund seeks to provide capital appreciation by
investing primarily in equity securities of companies with smaller
capitalizations that the portfolio management agent believes are conservatively
valued in the marketplace.
INVESTMENT RESULTS: The disparity between growth and value was even more
apparent in small-cap stocks than in large-cap stocks in 1999. The Russell 2000,
a popular index of small-cap stocks and the benchmark for the Fund, produced a
return of 21.26%. Against this return, the Fund's return of .49% seems
particularly disappointing. However, the Russell 2000 Value sub-Index produced a
negative total return of -1.49%. In its Lipper Small-Cap Funds peer group of
small-cap value funds, the Fund finished near the middle for the year, ranking
183 out of 334. It ranked 83rd in the group in the fourth quarter.
Once again, the technology sector led the way in 1999 with the highest
returns. More than 65% of technology stocks outperformed the broad market
indices. Other sectors that did well include communications, healthcare and
energy; again these are sectors that the Fund underweights due to its value
style.
For the last five years, value performance has trailed growth performance.
This phenomenon is cyclical: in the preceding five years value outperformed
growth. Currently, small-cap stocks are trading at a price-to-cash flow discount
of almost 25% compared with large-cap stocks. While predicting when the market
will shift is an inexact science at best, the improvement in the world economy
and the severe undervaluation of small-cap stocks leads us to believe such a
shift is inevitable. We continue to remain true our portfolio strategy.
GROWTH OF A $10,000 INVESTMENT IN THE SMALL-CAP
VALUE FUND, THE RUSSELL 2000 SMALL STOCK
INDEX AND THE RUSSELL 2000 VALUE INDEX
FROM INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
RUSSELL 2000 RUSSELL 2000 INSTITUTIONAL
SMALL STOCK INDEX VALUE INDEX*** SHARES N SHARES A SHARES
Jan. '85 $10,000 $10,000 $11,273 $11,270 $ 9,450
Dec. '85 13,105 13,101 13,073 13,051 12,326
Dec. '86 13,850 14,072 15,855 15,785 14,901
Dec. '87 12,635 13,071 16,236 16,120 15,198
Dec. '88 15,781 16,924 19,709 19,506 18,383
Dec. '89 18,343 19,027 22,473 22,205 20,908
Dec. '90 14,765 14,884 18,818 18,536 17,442
Dec. '91 21,564 21,091 26,655 26,208 24,620
Dec. '92 25,534 27,236 31,000 30,388 28,531
Dec. '93 30,362 33,710 35,636 34,850 32,706
Dec. '94 29,809 33,190 34,491 33,651 31,551
Dec. '95 38,287 41,735 43,855 42,663 39,967
Dec. '96 44,602 50,653 50,455 48,977 45,825
Dec. '97 54,575 66,753 65,380 63,223 59,137
Dec. '98 53,183 62,446 62,809 60,598 56,643
Dec. '99 64,490 61,517 63,118 60,731 56,764
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR 10 YEAR INCEPTION**
- ----------------------------------------------------------------------
Institutional Shares 0.49% 12.85% 10.88% 13.06%
N Shares 0.22% 12.53% 10.59% 12.77%
A Shares -5.31% 11.20% 9.88% 12.26%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions. The results for the A Shares of
the Fund assume an initial sales charge of 5.50%.
** The inception date for the Fund's performance with respect to the
Institutional Shares, N Shares and A Shares is January 1, 1985. Inception
for the index begins on the month-end closest to the inception date of the
Fund (or class thereof).
Performance information includes the performance of the Small-Cap Value
Fund's predecessor collective fund for periods before the Fund commenced
operations. Performance for the collective fund has been adjusted to reflect
the Fund's estimate of its expense ratio for the first year of operations as
a mutual fund. The collective fund was not registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), or subject to certain
investment restrictions that are imposed by the 1940 Act. If the collective
fund had been registered under the 1940 Act, its performance may have been
adversely affected. The collective fund did not impose any charges that
correspond to the advisory and other fees of the Small-Cap Value Fund.
Therefore, the quoted performance figures for the collective fund have been
reduced to reflect expenses of 1.00%, 1.24% and 1.34%, the estimated expense
ratios of the Institutional Shares, N Shares and A Shares of the Small-Cap
Value Fund, respectively, at the inception of its operations.
*** The Fund's primary benchmark is now the Russell 2000 Value Index. This index
better reflects the investment objectives and policies of the Fund.
Performance figures represent past performances and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
Historically, small company stocks have been more volatile than large
company stocks, U.S. Government bonds and Treasury bills.
20
<PAGE>
FUND SUMMARY
INDEX FUND
PERFORMANCE BENCHMARK: S&P 500 Stock Index -- An index comprised of an unmanaged
group of 500 widely held common stocks traded on the New York Stock Exchange,
the American Stock Exchange and the over-the-counter market.
INVESTMENT OBJECTIVE: The Fund seeks to provide the return and risk
characteristics of the S&P 500 Index, which emphasizes large capitalization
companies.
INVESTMENT RESULTS: 1999 was the fifth straight year the S&P 500 Index posted
gains greater than 20% and another great year to be invested in S&P 500 Index
Funds. More than half of all U.S. equity securities ended the year lower than
they began, making the last year of the millennium a difficult one for stock
pickers. The Fund outperformed its Lipper S&P 500 Index Objective Funds peer
group again this year.
Since the investment objective of the Fund is to provide the risk and
return characteristics of the S&P 500 Index, the Fund does not overweight or
underweight specific sectors. The Index is constructed and its returns are
calculated without subtracting fees or operational costs. The Fund, an actual
investment portfolio, inescapably incurs operational and transactional costs in
striving to replicate the Index. Moreover, when the Index rises a sizable
percentage as it did in 1999, it is more difficult to match the returns of the
Index, because the Index calculates its return by assuming dividends are
reinvested immediately on the "ex date," whereas in the real world of investing
cash, dividends are received only after a two to six week delay. During this
period, the prices of the stocks into which the dividends are to be reinvested
are changing, either rising (as in 1999) or declining (as in certain past
years).
GROWTH OF A $10,000 INVESTMENT IN THE INDEX
FUND AND THE S&P 500(REGISTRATION MARK)
STOCK INDEX FROM INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INSTITUTIONAL
INDEX SHARES N SHARES
Apr. '92 $10,000 $10,028 $10,027
Dec. '92 11,049 10,730 10,711
Dec. '93 12,153 11,750 11,700
Dec. '94 12,312 11,841 11,761
Dec. '95 16,920 16,218 16,069
Dec. '96 20,824 19,902 19,679
Dec. '97 27,771 26,427 26,077
Dec. '98 35,708 33,884 33,347
Dec. '99 43,221 40,795 40,063
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR INCEPTION**
- -----------------------------------------------------
Institutional Shares 20.40% 28.07% 19.98%
N Shares 20.14% 27.78% 19.70%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions.
** The inception date for the Fund's performance with respect to both of the
Institutional and N Shares is April 1, 1992. Inception for the Index begins
on the month-end closest to the inception date of the Fund (or class
thereof).
Performance information includes the performance of the Index Fund's
predecessor common trust fund for periods before the Fund commenced
operations. Performance for the common trust fund has been adjusted to
reflect the Fund's estimate of its expense ratio for the first year of
operations as a mutual fund. The common trust fund was not registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), or subject
to certain investment restrictions that are imposed by the 1940 Act. If the
common trust fund had been registered under the 1940 Act, its performance
may have been adversely affected. The common trust fund did not impose any
charges that correspond to the advisory and other fees of the Index Fund.
Therefore, the quoted performance figures for the common trust fund have
been reduced to reflect expenses of 0.45% and 0.70%, the estimated expense
ratios of the Institutional Shares and N Shares of the Index Fund,
respectively, at commencement of operations.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
21
<PAGE>
FUND SUMMARY
BALANCED FUND
PERFORMANCE BENCHMARK: S&P 500 Stock Index -- An index comprised of an unmanaged
group of 500 widely held common stocks listed on the New York Stock Exchange,
the American Stock Exchange and the over-the-counter market.
Lehman Brothers Aggregate Bond Index -- An index composed of the Lehman
Brothers/Corporate Index and the Mortgage-Backed Securities Index including
Treasury issues, agency issues, corporate bond issues and mortgage-backed
securities.
INVESTMENT OBJECTIVE: The Fund seeks to provide current income and capital
appreciation by investing in a balanced portfolio of fixed income and equity
securities.
INVESTMENT RESULTS: 1999 presented a very challenging investment environment for
a value-oriented fund such as the Harris Insight Balanced Fund. In equity
markets that were dominated by a relatively small group of technology stocks
selling at stratospheric valuations, value funds that maintained their
time-proven approach struggled to keep pace with the "dot.com" mania. More than
half the stocks in the S&P 500 declined in price last year, the median stock was
off 1.3%, and small-cap value benchmarks posted negative returns. This hostile
environment for value investors made it very difficult for the large- and
small-cap stocks in the Balanced Fund to post gains.
Entering the year 2000, the equity markets are being driven by liquidity
and price momentum. In certain sectors, primarily technology, biotech and growth
in general, there appears to be little link between today's stock prices and
underlying fundamentals. In our judgment, these types of equities are selling at
unsustainable levels. Therefore, the Fund will maintain its value orientation
and conservative posture toward stocks. We have, however, reviewed our stock
selection models and made some enhancements to our process designed to keep the
Fund more in tune with evolving market trends.
The fixed-income portion of the Balanced Fund performed quite well last
year. The Fund benefited from good duration management and overweighted
positions in spread products. While the bonds outperformed peer group funds and
market benchmarks, this was achieved in a rising interest rate environment that
saw bond prices decline. Accordingly, fixed-income returns in the Fund were
slightly negative.
Our outlook for interest rates has recently become less bearish. As a
result, we have adopted a neutral duration stance relative to the Fund's Lehman
benchmark. If interest rates stabilize, bond returns will show improvement from
1999 results.
GROWTH OF A $10,000 INVESTMENT IN THE
BALANCED FUND, S&P 500 STOCK INDEX
AND LEHMAN BROTHERS AGGREGATE BOND
INDEX FROM INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
LB AGGREGATE S&P 500 INSTITUTIONAL
BOND INDEX INDEX SHARES N SHARES A SHARES
Mar.'97 $10,000 $10,000 $ 9,843 $10,000 $ 9,450
Jun.'97 10,368 11,749 10,758 10,909 10,286
Dec.'97 11,030 12,996 12,025 12,172 11,426
Jun.'98 11,462 15,399 12,871 13,007 12,163
Dec.'98 11,986 16,713 13,059 13,181 12,270
Jun.'99 11,822 18,782 13,140 13,247 12,326
Dec.'99 11,888 20,229 12,889 12,980 12,074
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR INCEPTION**
- -----------------------------------------------------
Institutional Shares -1.30% 9.57%
N Shares -1.52% 10.08%
A Shares -7.00% 7.19%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions. The results for the A Shares of
the Fund assume an initial sales charge of 5.50%.
** The inception date of the Fund's Institutional Shares is March 24, 1997, and
April 16, 1997 for the N Shares and A Shares. Inception for the Index begins
on the month-end closest to the inception date of the fund.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
22
<PAGE>
FUND SUMMARY
INTERNATIONAL FUND
PERFORMANCE BENCHMARK: MSCI EAFE Index -- An index consisting of companies
listed on the stock exchanges of Europe, Australasia and the Far East. The Index
is capitalization weighted and replicates the industry composition and sampling
of the large, medium and small capitalization companies of each local market.
INVESTMENT OBJECTIVE: The Fund seeks to provide international diversification
and capital appreciation. Current income is a secondary objective. The Fund
seeks to achieve its investment objective by investing primarily in securities
of foreign issuers.
INVESTMENT RESULTS: Despite widespread publicity concerning potential Y2K risks,
global equity markets proved resilient and registered strong gains during the
year. Most notable was the continuing bifurcation in the markets in which many
of the highest P/E stocks (primarily technology and telecom stocks) led the
markets higher. Masked beneath the strong market returns is a profound
narrowness in which a small number of non-U.S. large-cap stocks (primarily in
the technology and telecommunication sectors) generated the overwhelming
majority of many stock markets' returns. This narrow market leadership does not
appear to be sustainable given the existing stock valuations and growth
prospects. Accordingly, we expect that the re-emergence of fundamental
considerations will result in a normalization of the extreme valuation
disparities that have emerged globally.
Given the attractive valuations and the upward earnings revisions that are
evident in the Fund, we are optimistic about prospects for the year 2000. We
positioned the portfolio to benefit from a unique combination of attractive
valuation and earnings strength in the Pacific Rim and Japan. It appears these
economies have bottomed. In addition, selective opportunities exist in Europe.
Key risks to global equities include inflation and interest rates. In addition
to these considerations, the actual timing of Japan's economic recovery remains
the wildcard for Asia, while prospects for synchronized European growth remain
on investors' minds.
GROWTH OF A $10,000 INVESTMENT IN THE
INTERNATIONAL FUND AND THE MSCI EAFE
INDEX FROM INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INSTITUTIONAL
INDEX SHARES N SHARES A SHARES
Jan. '87 $10,000 $10,000 $10,000 $9,450
Dec. '87 12,493 11,015 11,006 10,401
Dec. '88 16,065 12,621 12,579 11,887
Dec. '89 17,799 14,115 14,013 13,241
Dec. '90 13,671 10,987 10,874 10,215
Dec. '91 15,379 12,300 12,154 11,393
Dec. '92 13,557 11,761 11,595 10,862
Dec. '93 18,023 14,655 14,419 13,492
Dec. '94 19,476 15,284 15,011 14,037
Dec. '95 21,725 15,923 15,593 14,564
Dec. '96 23,107 16,737 16,354 15,253
Dec. '97 23,583 15,923 15,502 14,442
Dec. '98 28,300 15,184 14,752 13,701
Dec. '99 35,451 19,334 18,707 17,374
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR 5 YEAR 10 YEAR INCEPTION**
- --------------------------------------------------------------------
Institutional Shares 27.33% 4.81% 3.20% 5.23%
N Shares 26.81% 4.50% 2.93% 4.96%
A Shares 19.83% 3.18% 2.18% 4.37%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions. The results for the A Shares of
the Fund assume an initial sales charge of 5.50%.
** The inception date for the Fund's performance with respect to the
Institutional Shares, N Shares and A Shares is January 1, 1987. Inception
for the Index begins on the month-end closest to the inception date of the
Fund (or class thereof).
Performance information includes the performance of the International Fund's
predecessor common trust fund for periods before the Fund commenced
operations. Performance for the common trust fund has been adjusted to
reflect the Fund's estimate of its expense ratio for the first year of
operations as a mutual fund. The common trust fund was not registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), or subject
to certain investment restrictions that are imposed by the 1940 Act. If the
common trust fund had been registered under the 1940 Act, its performance
may have been adversely affected. The common trust fund did not impose any
charges that correspond to the advisory and other fees of the International
Fund. Therefore, the quoted performance figures for the common trust fund
have been reduced to reflect expenses of 1.40%, 1.65% and 1.75%, the
estimated expense ratios of the Institutional Shares, N Shares and A Shares
of the International Fund, respectively, at commencement of operations.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
International investing, especially in emerging markets, poses greater
potential risks as well as rewards when compared to U.S. investing, as a
result of market and currency fluctuations caused by political and financial
factors abroad.
23
<PAGE>
FUND SUMMARY
EMERGING MARKETS FUND
PERFORMANCE BENCHMARK: The MSCI Emerging Market Index -- An index that measures
performance for a universe of emerging markets. The emerging markets as defined
by MSCI share some of the following characteristics:
1) Gross National Product substantially below the average for developed
economies, which is consistent with the World Bank's classification criteria.
2) Greater government regulation limiting or banning foreign ownership in
industries and companies than that which prevails in developed markets.
3) Less sophisticated regulatory environment, trading hours, or back office
operations.
4) Restrictions on repatriation of initial capital, dividends, interest and/or
capital gains.
5) Greater perceived risk than in developed markets.
6) A general perception by the investment community that the country should be
considered emerging.
INVESTMENT OBJECTIVE: The Fund seeks to provide capital appreciation by
investing primarily in a diversified portfolio of publicly traded equity
securities of companies located in emerging markets.
INVESTMENT RESULTS: Emerging markets had a strong finish in 1999, more than
offsetting the correction seen in the third quarter and handily beating the
major international markets. The global technology/telecom rally also affected
the emerging markets, with stocks in this sector clearly outperforming other
emerging-market industry sectors. The sector benefited from strong global and
local demand. The Fund had a very strong weighting in the telecom sector for
most of 1999. For the fourth quarter of 1999, Latin America and the EMEA region
(Europe, Middle East and Africa) showed the best performance, while Asia, though
positive, lagged.
The Asian markets continue to benefit from favorable economic conditions,
which translate into better earnings-growth numbers, lower risk premiums and
more stable currencies. The global economy is strong and China made significant
advances towards joining the WTO. Indonesia, Thailand and Hong Kong were the
best performing markets in Asia, while India, Taiwan, Korea and the Philippines
underperformed the regional index, but still posted gains.
Latin America also benefited from increased earnings expectations across
the board. Brazil continues to improve on the economic front and outperformed
the other countries in the region. Mexico, which had the second best
performance, continues to benefit from its integration within NAFTA.
The strong performance of the EMEA region was anchored by triple-digit
gains in Russia and Turkey. Stronger economic data seen during the period and
fairly positive results in Russia's Duma elections propelled that market,
particularly in December. Turkey continues to make economic progress and has a
good chance to tame inflation for the first time in years.
GROWTH OF A $10,000 INVESTMENT IN THE EMERGING MARKETS FUND AND THE MSCI
EMERGING MARKETS INDEX FROM INCEPTION THROUGH DECEMBER 31, 1999.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INSTITUTIONAL
INDEX SHARES N SHARES A SHARES
Oct. '97 $10,000 $9,340 $9,340 $9,450
Dec. '97 9,768 8,550 8,540 8,072
Jun. '98 7,899 6,540 6,510 6,144
Dec. '98 7,297 5,886 5,850 5,510
Jun. '99 10,100 8,342 8,280 7,797
Dec. '99 11,945 9,683 9,598 9,072
AVERAGE ANNUAL TOTAL RETURNS*
FOR THE PERIOD ENDED 12/31/99
1 YEAR INCEPTION**
- -----------------------------------------------
Institutional Shares 64.53% -1.45%
N Shares 64.06% -1.85%
A Shares 55.55% -4.33%
* Total returns include changes in share price and the reinvestment of income
dividends and capital gain distributions. The results for the A Shares of
the Fund assume an initial sales charge of 5.50%.
** The inception date for the Fund's performance is October 21, 1997. Inception
for the Index begins on the month-end closest to the inception date of the
Fund.
Performance figures represent past performance and are not a guarantee of
future results. The investment return and principal value of shares will
fluctuate and shares, when redeemed, may be worth more or less than the
original amount invested.
International investing, especially in emerging markets, poses greater
potential risks as well as rewards when compared to U.S. investing, as a
result of market and currency fluctuations caused by political and financial
factors abroad.
24
<PAGE>
TAX INFORMATION
For the year ended December 31, 1999, the following Harris Insight Portfolios
declared dividends from net realized capital gains:
FIXED INCOME FUNDS
SHORT-TERM CAPITAL LONG-TERM CAPITAL
GAIN, PER SHARE GAIN, PER SHARE*
-------------------- --------------------
07/14/99 12/20/99 07/14/99 12/20/99
-------- -------- -------- --------
Bond Fund ......................... $0.0081 $ -- $ -- $ --
Short/Intermediate Bond Fund ...... -- -- 0.0153 --
Intermediate Tax-Exempt Bond Fund . 0.0110 -- 0.0020 --
Convertible Securities Fund ....... -- 0.0836 -- 0.0550
EQUITY FUNDS
SHORT-TERM CAPITAL LONG-TERM CAPITAL
GAIN, PER SHARE GAIN, PER SHARE*
-------------------- --------------------
07/14/99 12/20/99 07/14/99 12/20/99
-------- -------- -------- --------
Equity Fund ....................... $ -- $ -- $0.6578 $1.4017
Equity Income Fund ................ -- -- 0.2362 0.3422
Growth Fund ....................... -- -- 0.3805 1.0067
Small-Cap Opportunity Fund ........ -- -- -- 0.7647
Small-Cap Value Fund .............. -- -- 0.2823 0.1347
Index Fund ........................ 0.0285 0.0392 0.1072 0.3870
Balanced Fund ..................... -- -- 0.0663 1.3342
*All long-term capital gains paid during 1999 are taxable at the rate of 20%.
FOR CORPORATE SHAREHOLDERS ONLY:
The percentage of dividends from net investment income declared for the year
ended December 31, 1999, which qualify for the corporate dividends received
deduction is as follows:
Equity Fund ............................................................ 100%
Equity Income Fund ..................................................... 100%
Small-Cap Value Fund ................................................... 100%
Index Fund ............................................................. 100%
FOR SHAREHOLDERS OF THE INTERNATIONAL FUND AND THE EMERGING MARKETS FUND:
For the year ended December 31, 1999, the International Fund and Emerging
Markets Fund distributed $1,077,967 and $21,305, respectively, of foreign source
income on which the International Fund and Emerging Markets Fund paid foreign
taxes of $418,495 and $32,154, respectively. This information is being furnished
to you pursuant to notice requirements of Section 853(a) and 855(d) of the
Internal Revenue Code, as amended, and the Treasury Regulations thereunder.
25
<PAGE>
HARRIS INSIGHT FUNDS
GOVERNMENT MONEY MARKET FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
AGENCY OBLIGATIONS -- 39.3%
FEDERAL FARM CREDIT BANK -- 3.0%
5.850% 12/01/00 $15,000 $ 14,967,186
------------
FEDERAL HOME LOAN BANK -- 23.3%
4.915% 01/13/00 10,000 10,000,048
4.860% 01/14/00 12,190 12,189,621
4.950% 02/17/00 30,000 29,998,130
5.035% 02/25/00 14,000 13,999,363
5.075% 04/28/00 10,000 9,999,771
5.415% 06/14/00 15,270 15,262,914
5.560% 07/14/00 10,000 10,000,758
5.915% 10/13/00 15,000 14,992,703
------------
116,443,308
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 13.0%
4.970% 04/12/00 10,000 9,998,109
5.050% 05/12/00 15,000 14,994,271
5.620% 08/09/00 15,000 14,990,827
5.890% 11/24/00 25,000 24,938,949
------------
64,922,156
TOTAL AGENCY OBLIGATIONS
(Cost $196,332,650) 196,332,650
------------
ZERO COUPON BONDS -- 0.9%
FEDERAL HOME LOAN MORTGAGE CORP.
(Cost $4,684,752)
0.000% 01/16/01 5,000 4,684,752
------------
VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER) -- 40.0%
FEDERAL FARM CREDIT BANK -- 3.0%
6.293% 01/18/00* 15,000 14,997,314
------------
FEDERAL HOME LOAN BANK -- 15.0%
4.925% 01/03/00* 30,000 29,995,738
6.311% 01/12/00* 20,000 19,995,842
6.323% 01/21/00* 15,000 14,996,804
5.839% 02/14/00* 10,000 9,996,934
------------
74,985,318
------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 6.0%
6.266% 01/18/00* 20,000 19,993,967
6.261% 01/20/00* 10,000 9,998,278
------------
29,992,245
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 12.0%
4.940% 01/03/00* 10,000 9,997,302
5.000% 01/03/00* 20,000 19,995,541
6.275% 01/18/00* 10,000 9,998,848
5.160% 02/10/00* 10,000 9,997,869
5.970% 03/23/00 10,000 9,998,544
------------
59,988,104
------------
STUDENT LOAN MARKETING ASSOCIATION -- 4.0%
4.910% 01/03/00* 20,000 19,998,853
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $199,961,834) 199,961,834
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
REPURCHASE AGREEMENTS -- 9.7%
Lehman Brothers, Inc.
3.500%
Agreement dated 12/31/99,
proceeds at maturity
$48,715,173
(Collateralized by
$49,678,220 GNMA 6.000%
to 9.500%, due from
03/15/10 to 02/15/28. The
market value is
$49,671,585.)
(Cost $48,700,969) 01/03/00 $48,701 $ 48,700,969
------------
SHARES
----------
TEMPORARY INVESTMENTS -- 9.8%
AIM Short-Term Investment Trust
Treasury Portfolio 24,591,540 24,591,540
Provident Institutional Funds T-Fund 24,600,000 24,600,000
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $49,191,540) 49,191,540
------------
TOTAL INVESTMENTS -- 99.7%
(Cost $498,871,745) 498,871,745
------------
OTHER ASSETS AND LIABILITIES -- 0.3%
Interest receivable and other assets 3,817,448
Dividends payable (2,291,972)
Accrued expenses (225,574)
------------
1,299,902
------------
NET ASSETS -- 100.0%
Applicable to 210,552,312
Institutional Shares and
289,702,572 N Shares
outstanding, $.001 par
value; 1.5 billion
authorized shares
(Note 7) $500,171,647
============
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 12/31/99.
* Date of next interest rate reset.
See Notes to Financial Statements.
26
<PAGE>
HARRIS INSIGHT FUNDS
MONEY MARKET FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
ASSET-BACKED SECURITIES -- 4.2%
Ikon Receivables LLC
Series 1999-1, Class A1
5.110% 01/18/00 $27,234 $ 27,234,288
Syndicated Loan Funding Trust
6.613% 01/18/00 74,000 74,000,000
World Financial Properties
6.688% 01/10/00 31,043 31,043,445
--------------
TOTAL ASSET-BACKED SECURITIES
(Cost $132,277,733) 132,277,733
--------------
CERTIFICATES OF DEPOSIT -- 4.2%
Bankers Trust Co.
5.160% 04/10/00 49,000 48,993,538
Societe Generale
5.220% 02/28/00 38,925 38,921,191
Union Bank of California
6.178% 01/18/00 45,000 44,999,898
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $132,914,627) 132,914,627
--------------
COMMERCIAL PAPER -- 27.9%
Block Financial Corp.
6.150% 02/23/00 64,650 64,064,648
Corporate Receivables Corp.
6.020% 01/31/00 2,000 1,989,967
Countrywide Home Loans, Inc.
5.200% 01/07/00 100,000 99,913,333
Falcon Asset Securities Corp.
6.120% 01/11/00 26,901 26,855,268
Lower Colorado River Authority
6.220% 04/05/00 63,500 63,500,000
MCI Worldcom, Inc.
5.070% 01/28/00 50,000 49,772,375
Moriarty, Ltd.
6.120% 01/19/00 97,000 96,703,180
Preferred Receivables Funding
Corp.
6.000% 01/18/00 73,000 72,793,167
Republic Industries Funding Corp.
6.000% 01/12/00 50,000 49,908,333
6.000% 01/12/00 40,000 39,926,667
Surrey Funding Corp.
6.350% 01/12/00 6,112 6,100,141
6.300% 01/14/00 98,000 97,777,050
Thames Asset Global Securities
6.000% 01/18/00 55,000 54,844,167
6.070% 02/04/00 35,392 35,189,105
6.050% 02/17/00 25,270 25,070,402
Variable Funding Capital Corp.
6.150% 01/07/00 40,000 39,959,000
Windmill Funding Corp.
6.100% 01/27/00 50,000 49,779,722
--------------
TOTAL COMMERCIAL PAPER
(Cost $874,146,525) 874,146,525
--------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
CORPORATE BONDS -- 22.0%
AT&T Capital Corp.
7.500% 11/15/00 $44,780 $ 45,223,572
Bank One Corp.
6.170% 10/16/00 98,500 98,463,397
BankBoston NA
5.123% 02/17/00 39,350 39,348,500
Beta Finance, Inc.
5.235% 01/18/00 40,000 40,000,000
5.150% 02/24/00 40,000 39,997,262
5.160% 04/17/00 24,000 23,999,302
General Motors Acceptance Corp.
5.750% 01/05/00 3,500 3,500,227
8.625% 01/10/00 9,600 9,608,002
9.375% 04/01/00 7,346 7,419,854
7.375% 06/22/00 8,000 8,059,704
5.800% 08/07/00 12,500 12,499,706
Heller Financial, Inc.
6.140% 04/13/00 4,750 4,760,396
6.500% 05/15/00 17,790 17,852,164
Household Finance Corp.
5.678% 07/07/00 72,500 72,486,441
Huntington National Bank
5.950% 09/29/00 65,500 65,467,350
International Business Machines
Corp.
6.375% 06/15/00 16,137 16,188,057
International Lease Finance Corp.
6.650% 04/01/00 2,500 2,506,741
Lehman Brothers Holdings, Inc.
8.875% 02/15/00 10,000 10,038,924
6.150% 03/15/00 11,615 11,629,014
7.290% 09/25/00 5,000 5,033,020
6.890% 10/10/00 5,000 5,018,715
Liberty Lighthouse US Capital Co.
5.700% 07/17/00 36,000 35,960,061
PHH Corp.
5.510% 02/22/00 11,500 11,500,000
5.610% 02/22/00 35,000 35,000,000
5.490% 03/01/00 60,000 59,994,306
Salomon Smith Barney
Holdings, Inc.
6.500% 03/01/00 8,200 8,218,138
--------------
TOTAL CORPORATE BONDS
(Cost $689,772,853) 689,772,853
--------------
VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER) -- 35.2%
AT&T Corp.
6.136% 01/13/00* 50,000 49,989,399
Caterpillar Financial Service Corp.
6.130% 01/07/00* 70,000 70,000,000
CFM International
6.525% 01/03/00* 55,000 55,000,000
CIT Group Holdings, Inc.
5.690% 01/03/00* 78,200 78,192,136
Dean Witter Discover Co.
6.458% 03/01/00 14,000 14,009,281
See Notes to Financial Statements.
27
<PAGE>
HARRIS INSIGHT FUNDS
MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- -------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
VARIABLE RATE OBLIGATIONS(DOUBLE DAGGER) (CONTINUED)
First Union National Bank
6.433% 01/19/00* $39,900 $ 39,900,612
6.140% 02/16/00* 50,000 50,000,000
General Motors Acceptance Corp.
6.141% 02/03/00 19,000 19,000,406
Goldman Sachs Group
6.330% 01/07/00 5,000 5,000,000
6.258% 01/15/00* 49,000 49,000,000
Heller Financial, Inc.
6.464% 01/13/00* 25,000 25,018,874
6.330% 03/01/00* 20,000 20,013,128
6.290% 03/20/00 30,000 30,009,591
Huntington National Bank
5.563% 11/28/00 23,000 23,000,000
John Deere Capital Corp.
5.634% 01/01/00* 43,000 42,990,592
John Hancock Mutual Life Insurance Co.
6.580% 01/18/00* 80,000 80,000,000
Lehman Brothers Holdings, Inc.
6.711% 01/18/00 65,000 65,000,000
Liberty Lighthouse US Capital Co.
6.513% 01/21/00* 50,000 49,984,930
Madison, Wisconsin, Community
Development Authority Revenue Bonds
6.750% 01/05/00* 9,440 9,440,000
Moat Funding, LLC
6.479% 01/06/00* 90,000 90,000,000
NationsBank of North America
5.660% 01/03/00* 43,800 43,795,048
Northern Rock P.L.C.
6.110% 03/14/00* 37,200 37,199,492
Pennsylvania Economic Development
Finance Authority Revenue Bonds
6.000% 01/06/00* 5,800 5,800,000
PNC Bank Corp.
6.461% 01/26/00* 10,650 10,649,488
RACERS Series 1999-26 Class A
6.603% 01/18/00* 65,500 65,498,930
Rural Electric Cooperative Grantor Trust
(Kansas Electric Power Cooperative)
6.500% 01/05/00* 10,608 10,608,831
Sacramento County, California,
Municipal Bond
5.850% 01/05/00* 66,500 66,500,000
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $1,105,600,738) 1,105,600,738
--------------
ANNUALIZED
YIELD/RATE Share Value(DAGGER)
---------- ----------- --------------
TEMPORARY INVESTMENTS -- 5.9%
Dreyfus Cash Management Plus, Inc.
Class A Shares 13 $ 13
Goldman Sachs Financial Square
Money Market Portfolio 74,037,647 74,037,647
J.P. Morgan Institutional Prime
Money Market Portfolio 110,421,460 110,421,460
--------------
TOTAL TEMPORARY INVESTMENTS
(Cost $184,459,120) 184,459,120
--------------
TOTAL INVESTMENTS -- 99.4%
(Cost $3,119,171,596) 3,119,171,596
--------------
OTHER ASSETS AND LIABILITIES -- 0.6%
Interest receivable and other assets 33,511,005
Dividends payable (13,723,991)
Accrued expenses (1,007,522)
--------------
18,779,492
--------------
NET ASSETS -- 100.0%
Applicable to 2,084,731,992 Institutional
Shares and 1,053,233,667 N Shares
outstanding, $.001 par value;
3.55 billion authorized shares (Note 7) $3,137,951,088
==============
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 12/31/99.
* Date of next interest rate reset.
See Notes to Financial Statements.
28
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS -- 99.5%
ALABAMA -- 1.4%
Columbia, Alabama, Industrial Development
Board Pollution Control Revenue Bonds
(Alabama Power Co. Project) Series C VR
4.500% 01/01/00 $10,500 $ 10,500,000
------------
ALASKA -- 10.2%
Alaska State Housing Financial Corp.
Governmental Purpose Revenue Bonds
(University of Alaska) Series A VR
5.550% 01/01/00 15,195 15,195,000
Anchorage, Alaska, Electric Utility Revenue
Bonds Series 1996D VR
5.500% 01/07/00 7,700 7,700,000
Valdez, Alaska, Marine Terminal Revenue
Bonds (Arco Transportation Project)
Series C TECP
3.800% 03/10/00 10,000 9,999,998
3.750% 04/10/00 5,000 5,000,000
3.800% 04/10/00 5,000 5,000,000
3.700% 04/11/00 10,000 10,000,000
Valdez, Alaska, Marine Terminal Revenue
Bonds (Exxon Pipeline Co. Project) VR
4.850% 01/01/00 24,500 24,500,000
------------
77,394,998
------------
ARIZONA -- 1.1%
Maricopa County, Arizona, Pollution Control
Corp. Revenue Refunding Bonds
(Arizona Public Service Co.) Series B VR
4.900% 01/01/00 8,400 8,400,000
------------
CALIFORNIA -- 0.7%
Los Angeles County, California, TRANS
4.000% 06/30/00 5,000 5,016,265
------------
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 -- 0.4%
Delaware State General Obligation Bonds
Series A
4.500% 02/01/00 3,000 3,002,712
------------
FLORIDA -- 1.8%
Putnam County, Florida, Development
Authority Pollution Control Revenue
Bonds (Seminole Electric) VR
5.550% 01/07/00 3,565 3,565,000
Sunshine State, Florida, Government
Finance Commission TECP
3.850% 02/10/00 5,000 5,000,000
3.700% 03/09/00 5,000 5,000,000
------------
13,565,000
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
GEORGIA -- 3.3%
Burke County, Georgia, Development
Authority Pollution Control Revenue
Bonds (Georgia Power Co. Plant Vogtle
Project) 3rd Series VR
4.900% 01/03/00 $10,200 $ 10,200,000
Georgia Municipal Electric Authority TECP
3.900% 02/11/00 5,000 5,000,000
3.750% 04/07/00 10,000 10,000,000
------------
25,200,000
------------
HAWAII -- 1.1%
City & County of Honolulu, Hawaii TECP
3.750% 03/09/00 8,000 8,000,000
------------
IDAHO -- 1.3%
Idaho State TANS
4.250% 06/30/00 10,000 10,040,613
------------
ILLINOIS -- 7.2%
Cook County, Illinois, Revenue Bonds
(Catholic Charities) VR
5.550% 01/07/00 8,300 8,300,000
Illinois Development Finance Authority
Revenue Bonds (McCormick Theological)
Series A VR
4.950% 01/07/00 3,785 3,785,000
Illinois Development Finance Authority
Revenue Bonds (North Park University) PS
3.750% 03/08/00 3,000 3,000,000
Illinois Development Finance Authority
Revenue Bonds (Presbyterian Home
Lake) Series A VR
5.550% 01/07/00 23,000 23,000,000
Illinois Development Finance Authority
Revenue Bonds (Provena Health Project)
Series B VR
4.950% 01/01/00 10,000 10,000,000
Illinois Development Finance Authority
Revenue Bonds (Roosevelt University
Project) VR
5.550% 01/07/00 6,500 6,500,000
------------
54,585,000
------------
INDIANA -- 9.9%
ABN AMRO Munitops Certificates
Series 5 VR
5.680% 01/07/00 20,746 20,746,000
Indiana Health Facilities Finance Authority
(Acension Health) TECP
3.800% 02/09/00 20,000 20,000,000
Indiana State Development Finance
Authority Environmental Improvement
Revenue Bonds (USX Corp. Project) PS
3.450% 03/02/00 2,200 2,200,000
Indiana State Office Building Notes TECP
3.650% 02/23/00 15,066 15,066,000
See Notes to Financial Statements.
29
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
INDIANA (CONTINUED)
Rockport, Indiana, Pollution Control
Revenue Bonds (Indiana & Michigan
Power Co.) Series A VR
5.550% 01/07/00 $ 3,845 $ 3,845,000
Rockport, Indiana, Pollution Control
Revenue Bonds (Indiana & Michigan
Power Co. Project) Series B VR
5.500% 01/07/00 13,000 13,000,000
------------
74,857,000
------------
IOWA -- 1.1%
Iowa State School Cash Anticipation
Program, Iowa School Corps Warrants
Certificates Series B
3.500% 01/28/00 5,000 5,001,901
Polk County, Iowa, Hospital Equipment
Authority Revenue Bonds VR
5.500% 01/07/00 2,880 2,880,000
------------
7,881,901
------------
KENTUCKY -- 3.2%
Kentucky Asset Liability Commission
Project Notes TECP
3.650% 03/02/00 3,800 3,800,000
Kentucky Asset Liability Commission
Revenue TRANS
4.250% 06/28/00 10,000 10,037,955
Mason County, Kentucky, Pollution Control
Revenue Bonds (East Kentucky Power
Co-Op) Series B-2 VR
5.550% 01/07/00 4,900 4,900,000
Mason County, Kentucky, Pollution Control
Revenue Bonds (East Kentucky Power
Co-Op) Series B-3 VR
5.550% 01/07/00 5,610 5,610,000
------------
24,347,955
------------
LOUISIANA -- 4.0%
Lake Charles, Louisiana, Harbor Terminal
District Revenue Bonds (Conoco, Inc.
Project) Series A VR
5.500% 01/07/00 12,100 12,100,000
West Baton Rouge Parish, Louisiana,
Industrial District No. 3 Revenue Bonds
(Dow Chemical Co. Project) Series B VR
5.000% 01/01/00 18,300 18,300,000
------------
30,400,000
------------
MICHIGAN -- 2.2%
Michigan State Strategic Fund Pollution
Control Revenue Refunding Bonds
(Consumers Power Project) VR
4.900% 01/01/00 16,500 16,500,000
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
MISSISSIPPI -- 0.9%
Jackson County, Mississippi, Pollution
Control Revenue Bonds (Chevron Corp.
Project) VR
3.850% 01/01/00 $ 7,000 $ 7,000,000
------------
MISSOURI -- 2.4%
Missouri State Development Finance Board
Infrastructure Facilities Revenue Bonds
(Social City Union Station Asset Corp.)
Series B VR
4.500% 01/01/00 9,100 9,100,000
Missouri State Development Finance Board
Infrastructure Facilities Revenue Bonds
(Social City Union Station Asset Corp.)
Series C VR
4.500% 01/01/00 2,300 2,300,000
Missouri State Health & Education Facilities
Authority Revenue Bonds (Washington
University) TECP
3.650% 03/01/00 7,000 7,000,000
------------
18,400,000
------------
NEBRASKA -- 2.4%
Nebraska Public Power District Electric
System Revenue Bonds TECP
3.850% 02/11/00 7,975 7,975,000
3.700% 04/10/00 10,000 10,000,000
------------
17,975,000
------------
NEW MEXICO -- 0.6%
Albuquerque, New Mexico, General
Obligation Bonds Series A
3.750% 07/01/00 1,000 1,000,963
Farmington, New Mexico, Pollution Control
Revenue Refunding Bonds (Arizona
Public Service Co.) Series A VR
4.700% 01/01/00 3,400 3,400,000
------------
4,400,963
------------
NEW YORK -- 13.4%
Long Island Power Authority, New York
Electric Systems Revenue Bonds
Subseries 5 VR
4.700% 01/01/00 17,400 17,400,000
New York City, New York, General Obligation
Bonds Series A51 VR
5.750% 01/07/00 35,000 35,000,000
New York City, New York, General Obligation
Bonds Subseries B-2 VR
4.500% 01/01/00 5,000 5,000,000
New York City, New York, Municipal Water
Finance Authority Water & Sewer System
Revenue Bonds Series A VR
4.500% 01/01/00 17,000 17,000,000
See Notes to Financial Statements.
30
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
NEW YORK (CONTINUED)
New York City, New York, Municipal Water
Finance Authority Water & Sewer System
Revenue Bonds Series G VR
4.700% 01/01/00 $ 5,250 $ 5,250,000
New York City, New York, Transitional
Finance Authority Revenue Bonds VR
5.750% 01/07/00 20,280 20,280,000
New York State Energy Research &
Development Authority Pollution Control
Revenue Bonds (Niagara Mohawk
Power Corp.) Series B VR
4.900% 01/01/00 1,100 1,100,000
------------
101,030,000
------------
NORTH DAKOTA -- 0.1%
Mercer County, North Dakota, Pollution
Control Revenue Bonds (United Power-
National Rural Utilities Project)
Series 84C VR
5.550% 01/07/00 995 995,000
------------
OKLAHOMA -- 4.7%
Muskogee, Oklahoma, Industrial Trust
Pollution Control Revenue Bonds
(Oklahoma Gas & Electric Co.)
Series A VR
5.500% 01/07/00 16,500 16,500,000
Oklahoma City, Oklahoma, Industrial &
Cultural Trust Revenue Bonds TECP
3.750% 03/08/00 13,440 13,440,000
Tulsa, Oklahoma, Industrial Authority
Revenue Bonds (University of Tulsa)
Series B VR
5.500% 01/07/00 5,550 5,550,000
------------
35,490,000
------------
OREGON -- 1.2%
Multnomah County, Oregon, School
District No. 1J TRANS
4.000% 06/30/00 9,000 9,021,553
------------
SOUTH CAROLINA -- 1.7%
Berkeley County, South Carolina, Pollution
Control Facilities Revenue Refunding
Bonds (Amoco Chemical Co. Project) VR
4.850% 01/01/00 2,700 2,700,000
York County, South Carolina, Pollution
Control Revenue Bonds PS
3.700% 03/15/00 10,000 10,000,000
------------
12,700,000
------------
TENNESSEE -- 0.3%
Tennessee State General Obligation Bonds
Series B
5.000% 05/01/00 2,000 2,009,804
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
TEXAS -- 7.4%
Denton, Texas, Independent School District
General Obligation Bonds Series B PS
3.650% 08/15/00 $ 6,000 $ 6,000,000
Gulf Coast Waste Disposal Authority,
Texas Pollution Control Revenue
Refunding Bonds (Exxon Project) VR
4.850% 01/01/00 7,150 7,150,000
Houston, Texas, Water & Sewer Systems
Revenue Bonds Series A29 VR
5.750% 01/07/00 2,800 2,800,000
Nueces County, Texas, Health Facilities
Development Corp. Revenue Bonds
(Driscoll Children's Foundation
Project) VR
5.550% 01/07/00 9,205 9,205,000
Sabine River, Texas, Industrial Development
Authority Revenue Bonds (National Rural
Utilities Project) PS
3.450% 02/15/00 3,500 3,500,000
Sabine River, Texas, Pollution Control
Revenue Bonds (Collective Utilities
Electric Co.) Series B VR
4.500% 01/01/00 6,000 6,000,000
Texas Higher Education Authority,
Educational Equipment & Improvement
Revenue Bonds VR
5.500% 01/07/00 7,310 7,310,000
Texas Small Business Industrial
Development Revenue Bonds VR
5.550% 01/07/00 8,845 8,845,000
Texas State TRANS Series A
4.500% 08/31/00 5,000 5,025,665
------------
55,835,665
------------
UTAH -- 1.1%
Emery County, Utah, Pollution Control
Revenue Bonds (Pacificorp Project) VR
4.950% 01/01/00 8,000 8,000,000
------------
VERMONT -- 0.1%
Vermont State General Obligation Bonds
Series 90A PS
6.750% 02/01/00 1,000 1,022,370
------------
WASHINGTON -- 3.3%
Washington State General Obligation Bonds
4.250% 07/01/00 2,845 2,856,186
Washington State Health Care Facilities
Authority Revenue Bonds (Fred
Hutchinson Cancer Center) VR
4.500% 01/01/00 22,170 22,170,000
------------
25,026,186
------------
WEST VIRGINIA -- 1.4%
ABN AMRO Munitops Certificates Trust
Series 1999-4 PS
3.500% 05/25/00 10,822 10,822,000
------------
See Notes to Financial Statements.
31
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
WISCONSIN -- 8.2%
Beaver Dam, Wisconsin, United School
District TRANS
4.000% 08/24/00 $ 5,000 $ 5,007,748
Clinton, Wisconsin, Community School
District BANS
4.300% 09/15/00 4,000 4,005,571
Elkhorn, Wisconsin, Area School District
TRANS
4.030% 08/25/00 4,000 4,003,217
Iola Scandinavia, Wisconsin, School
District BANS
4.400% 11/01/00 3,500 3,505,692
Maple Dale-Indian Hill, Wisconsin, School
District TRANS
4.000% 08/21/00 2,700 2,704,972
Monroe, Wisconsin, School District BANS
4.400% 06/12/00 8,000 8,011,869
Racine, Wisconsin, United School District
TRANS
3.750% 07/06/00 10,000 10,010,863
Shorewood, Wisconsin, School District
TRANS
4.000% 09/01/00 3,865 3,870,177
Sparta, Wisconsin, Area School District
BANS
3.250% 03/01/00 5,000 5,000,000
Waunakee, Wisconsin, Community School
District TRANS
4.000% 09/15/00 3,800 3,803,850
Wausau, Wisconsin, School District BANS
3.450% 06/01/00 7,000 7,000,000
Whitewater, Wisconsin, United School
District BANS
4.400% 09/11/00 5,000 5,008,200
------------
61,932,159
------------
WYOMING -- 1.2%
Platte County, Wyoming, Pollution Control
Revenue Bonds (Tri-State Generation &
Transmission Project) Series A VR
4.500% 01/01/00 7,400 7,400,000
Sublette County, Wyoming, Pollution Control
Revenue Bonds (Exxon Project) VR
4.850% 01/01/00 1,300 1,300,000
------------
8,700,000
------------
TOTAL MUNICIPAL BONDS
(Cost $751,852,144) 751,852,144
------------
SHARES VALUE(DAGGER)
-------- ------------
TEMPORARY INVESTMENTS -- 0.9%
Federated Tax-Free Obligation Fund 1,776,739 $ 1,776,739
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 5,262,250 5,262,250
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $7,038,989) 7,038,989
------------
TOTAL INVESTMENTS -- 100.4%
(Cost $758,891,133) 758,891,133
------------
OTHER ASSETS AND LIABILITIES -- (0.4%)
Interest receivable and other assets 4,841,714
Payable for securities purchased (5,008,200)
Dividends payable (2,328,570)
Accrued expenses (277,294)
------------
(2,772,350)
------------
NET ASSETS -- 100.0%
Applicable to 515,988,832 Institutional
Shares and 240,138,431 N Shares
outstanding, $.001 par value;
1.5 billion authorized shares (Note 7) $756,118,783
============
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 12/31/99. Maturity
date is the later of the next interest rate change or exercise of the
demand feature.
BANS -- Bond Anticipation Note.
TANS -- Tax Anticipation Note.
TECP -- Tax Exempt Commercial Paper.
TRANS -- Tax and Revenue Anticipation Note.
See Notes to Financial Statements.
32
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
AGENCY OBLIGATIONS -- 1.2%
Federal Home Loan Bank
7.360% 07/01/04 $ 1,000 $ 1,019,412
Federal Home Loan Mortgage Corp.
7.100% 04/10/07 2,500 2,509,441
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $3,557,121) 3,528,853
-----------
ASSET-BACKED SECURITIES -- 20.0%
AK Bank Series 1998-A, Class 1
8.678% 07/15/05 2,700 2,617,312
ARG Funding Corp. Series 1999-1A, Class A2
5.880% 05/20/03 3,500 3,406,706
BankAmerica Manufactured Housing
Contract Series 1998-2, Class B1
7.930% 12/10/25 4,725 2,598,750
California Infrastructure Pacific Gas &
Electric Series 1997-1, Class A7
6.420% 09/25/08 3,669 3,551,311
Capita Equipment Receivables Trust
Series 1996-1, Class A4
6.280% 06/15/00 587 587,018
Case Equipment Loan Trust
Series 1997-A, Class B
6.700% 03/15/04 1,250 1,212,652
Charming Shoppes Master Trust
Series 1997-1, Class A
6.813% 04/15/06 2,500 2,436,719
Chemical Credit Card Master Trust I
Series 1996-1, Class A
5.550% 09/15/03 3,000 2,971,621
Citibank Credit Card Master Trust I
Series 1997-2, Class B
6.700% 02/15/04 5,000 4,955,571
Credit Card Receivable Trust
Series 1998-IA, Class A
6.478% 12/22/04 2,550 2,502,774
Discover Card Master Trust I
Series 1999-1, Class A
5.300% 08/15/04 2,125 2,060,187
Gracechurch Card Funding PLC,
Series 1, Class A
6.402% 11/15/04 4,000 4,000,000
Green Tree Financial Corp.
Series 1996-1, Class A2
5.850% 03/15/27 964 963,220
Household Home Equity Loan Trust
Series 1999-1, Class A3
7.210% 10/20/30 5,365 5,353,197
MBNA Master Credit Card Trust
Series 1998-C, Class C
6.350% 11/15/05 3,000 2,880,000
MBNA Master Credit Card Trust
Series 1999-I, Class A
6.400% 01/18/05 720 713,016
MBNA Master Credit Card Trust
Series 1999-K, Class C
7.413% 03/15/05 6,500 6,500,000
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
ASSET-BACKED SECURITIES (CONTINUED)
Metris Master Trust Series 1997-1, Class A
6.870% 10/20/05 $1,725 $ 1,701,003
Onyx Acceptance Grantor Trust,
Series 1998-A, Class A3
5.850% 08/15/02 3,177 3,161,672
SBC Glacier Finance, Ltd. Series 1997-1,
Class A
6.280% 09/10/04 3,500 3,477,950
Toyota Auto Lease Trust Series 1997-A,
Class B
6.750% 04/26/04 3,500 3,421,250
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $63,882,349) 61,071,929
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 23.6%
Asset Securitization Corp. Series 1997-D4,
Class PS1 IO
1.031% 04/14/29 66,611 4,017,477
Chase Mortgage Finance Corp.
Series 1993-0, Class A5
6.600% 12/25/09 2,569 2,511,280
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A4
5.946% 11/25/08 4,475 4,439,017
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A5
6.944% 11/25/08 1,504 1,393,205
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A6
8.500% 11/25/08 905 903,294
Countrywide Funding Corp. Series 1994-5,
Class A7F
5.708% 03/25/09 2,915 2,834,406
Countrywide Funding Corp. Series 1994-5,
Class A7S
7.017% 03/25/09 1,097 893,030
Countrywide Funding Corp. Series 1994-5,
Class A7T
9.000% 03/25/09 696 685,904
DLJ Commercial Mortgage Corp.
Series 1998-CF2, Class S IO
0.848% 11/12/31 52,154 2,558,830
DLJ Mortgage Acceptance Corp.
Series 1995-Q1, Class A1-S IO
1.890% 03/25/25 142 17,709
DLJ Mortgage Acceptance Corp.
Series 1996-M, Class A1
7.526% 11/28/11 4,627 4,408,431
DLJ Mortgage Acceptance Corp.
Series 1997-CF2, Class CP IO
1.364% 11/15/04 51,000 2,761,172
Federal Home Loan Mortgage Corp.
Series 2100, Class GA
6.000% 04/15/12 5,000 4,870,213
Federal National Mortgage Association
Series 1990-32, Class E
9.000% 12/25/04 88 88,856
See Notes to Financial Statements.
33
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Series 1993-183, Class M
6.500% 07/25/23 $2,000 $ 1,893,229
Federal National Mortgage Association
Series 1993-197, Class SB
5.520% 10/25/08 6,082 5,120,463
Federal National Mortgage Association
Series 1994-85, Class E
6.000% 11/25/06 849 843,351
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 19,168 994,849
Federal National Mortgage Association
Series 1997-70, Class PE PO
7.487% 04/25/22 3,797 2,818,113
Federal National Mortgage Association
Series 1998-T1, Class A
6.654% 12/28/28 2,549 2,423,587
J.P. Morgan Commercial Mortgage Finance
Corp. Series 1999-C7, Class A2
6.507% 10/15/35 3,250 3,009,647
Lehman Structured Securities Corp.
Series 1999-2, Class A
6.500% 11/25/21 4,454 4,172,188
Morgan Stanley Capital I Series 1998-WF1,
Class A1
6.250% 07/15/07 3,303 3,194,038
Morgan Stanley Capital I Series 1999-WF1,
Class A2
6.210% 09/15/08 2,260 2,073,821
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 2,064 2,051,895
PNC Mortgage Securities Corp.
Series 1996-2, Class A4
6.600% 02/25/11 4,534 4,316,134
PNC Mortgage Securities Corp.
Series 1997-5, Class A8
6.750% 10/25/27 6,000 5,955,703
Structured Asset Securities Corp.
Series 1998-R3, Class A1 IO
6.100% 01/15/13 5,520 1,010,801
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $76,012,388) 72,260,643
-------------
MORTGAGE-BACKED SECURITIES -- 5.1%
Federal Home Loan Mortgage Corp.
Pool #300515
7.500% 05/01/27 442 439,471
Federal National Mortgage Association
6.500% 01/15/30 4,500 4,240,547
Federal National Mortgage Association
Pool #303724
6.000% 01/01/11 4,589 4,398,410
Federal National Mortgage Association
Pool #305189
9.000% 01/01/25 17 18,209
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Federal National Mortgage Association
Pool #305555
9.000% 01/01/25 $ 142 $ 149,364
Federal National Mortgage Association
Pool #306031
9.000% 02/01/25 278 291,266
Federal National Mortgage Association
Pool #306674
9.000% 03/01/25 99 103,576
Federal National Mortgage Association
Pool #317306
9.000% 07/01/25 139 145,999
Federal National Mortgage Association
Pool #338001
9.000% 10/01/25 8 8,443
Government National Mortgage Association
Pool #8747
6.125% 11/20/25 107 109,536
Government National Mortgage Association
Pool #326150
7.000% 09/15/23 155 151,511
Government National Mortgage Association
Pool #333668
7.000% 07/15/23 421 410,074
Government National Mortgage Association
Pool #345039
7.000% 09/15/23 536 522,689
Government National Mortgage Association
Pool #345536
7.000% 01/15/24 348 339,229
Government National Mortgage Association
Pool #351638
7.000% 06/15/23 611 595,975
Government National Mortgage Association
Pool #377553
7.000% 07/15/25 500 484,790
Government National Mortgage Association
Pool #383330
7.000% 07/15/25 692 671,603
Government National Mortgage Association
Pool #391901
7.000% 07/15/25 431 417,864
Government National Mortgage Association
Pool #397755
7.000% 05/15/24 546 530,740
Government National Mortgage Association
Pool #406568
7.000% 07/15/25 746 723,549
Government National Mortgage Association
Pool #407660
7.000% 07/15/25 447 433,710
Government National Mortgage Association
Pool #780023
7.000% 09/15/24 561 542,779
-------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $15,883,707) 15,729,334
-------------
See Notes to Financial Statements.
34
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
CORPORATE BONDS -- 33.3%
ELECTRIC -- 1.1%
Consolidated Edison Co., Inc.
6.625% 07/01/05 $2,150 $ 2,066,687
Texas Utilities Electric Co.
6.750% 04/01/03 1,440 1,418,400
-------------
3,485,087
-------------
FINANCE - BANK -- 7.9%
Bank One Corp.
6.400% 08/01/02 2,500 2,456,250
7.250% 08/15/04 3,320 3,286,800
BankAmerica Corp.
7.500% 10/15/02 2,320 2,343,200
Citigroup, Inc.
7.875% 05/15/25 835 827,694
Mercantile Bancorp
7.050% 06/15/04 3,170 3,118,488
NationsBank Corp.
6.500% 08/15/03 2,310 2,258,025
Providian National Bank
6.650% 02/01/04 3,375 3,214,688
Sanwa Business Credit Corp.
6.160% 03/13/00 5,000 4,999,314
Sanwa Finance Aruba AEC
8.350% 07/15/09 1,685 1,699,744
-------------
24,204,203
-------------
FINANCE - NON-BANK -- 10.0%
American Express Credit Corp.
6.125% 11/15/01 440 434,500
Associates Corp. of North America
5.750% 10/15/03 190 181,450
Associates Corp. of North America
Euro Bond
6.875% 06/20/02 1,775 1,763,906
Beneficial Corp.
8.400% 05/15/08 45 46,069
Beneficial Finance Corp. MTN
9.130% 07/25/01 1,000 1,028,750
Camden Property Trust
7.000% 04/15/04 3,500 3,368,750
Case Credit Corp.
5.930% 02/26/01 4,000 3,930,000
General Motors Acceptance Corp.
6.850% 06/17/04 3,375 3,328,594
Hartford Life, Inc.
7.100% 06/15/07 3,725 3,594,625
Household Finance Corp.
6.000% 05/01/04 1,200 1,140,000
Lehman Brothers Holdings, Inc.
7.375% 05/15/04 4,540 4,505,950
Morgan Stanley Dean Witter & Co.
5.625% 01/20/04 3,475 3,283,875
Salomon Smith Barney Holdings, Inc.
5.875% 02/01/01 3,885 3,846,150
-------------
30,452,619
-------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
CORPORATE BONDS (CONTINUED)
INDUSTRIAL -- 7.0%
Cendant Corp.
7.750% 12/01/03 $1,530 $ 1,514,700
Cox Communications, Inc.
6.690% 09/20/04 3,305 3,189,325
Ford Motor Co.
9.000% 09/15/01 4,000 4,130,000
Fort James Corp.
6.700% 11/15/03 4,000 3,895,000
Monsanto Co.
5.750% 12/01/05 4,480 4,099,200
Rite Aid Corp.
7.125% 01/15/07 2,360 1,746,400
Sears, Roebuck & Co. MTN
8.390% 02/14/02 800 817,000
Tele-Communications, Inc.
9.800% 02/01/12 1,760 2,061,400
-------------
21,453,025
-------------
OIL -- 1.5%
Atlantic Richfield Co.
9.125% 03/01/11 100 111,500
Conoco, Inc.
5.900% 04/15/04 1,525 1,456,375
Petro Mexicanos Finance, Ltd.
5.720% 11/15/03 2,925 2,844,563
-------------
4,412,438
-------------
TELEPHONES -- 4.8%
Airtouch Communications, Inc.
6.650% 05/01/08 3,000 2,823,750
GTE North, Inc.
6.400% 02/15/05 3,575 3,432,000
Sprint Capital Corp.
5.875% 05/01/04 4,115 3,904,106
TCI Communications, Inc.
8.650% 09/15/04 1,000 1,057,940
Worldcom, Inc.
6.400% 08/15/05 3,705 3,556,800
-------------
14,774,596
-------------
TRANSPORTATION -- 1.0%
Norfolk Southern Corp.
7.350% 05/15/07 3,000 2,928,750
-------------
TOTAL CORPORATE BONDS
(Cost $105,150,572) 101,710,718
-------------
SUPRANATIONAL BONDS -- 1.0%
African Development Bank
(Cost $3,056,017)
7.750% 12/15/01 3,000 3,045,000
-------------
See Notes to Financial Statements.
35
<PAGE>
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
YANKEE BONDS -- 3.5%
Banco Santiago S.A.
7.000% 07/18/07 $3,730 $ 3,324,363
Cable & Wireless Communications Notes
6.625% 03/06/05 955 943,063
Empresa Nacional Electric
7.750% 07/15/08 2,400 2,280,000
Korea Development Bank
7.375% 09/17/04 1,415 1,388,469
Korea Electric Power Corp.
7.000% 02/01/27 1,475 1,362,531
Korea Electric Power Global
6.375% 12/01/03 1,455 1,380,431
------------
TOTAL YANKEE BONDS
(Cost $11,255,500) 10,678,857
------------
U.S. TREASURY OBLIGATIONS -- 3.0%
U.S. TREASURY NOTES
5.750% 10/31/00 700 697,721
6.625% 07/31/01 1,185 1,191,942
5.625% 09/30/01 225 222,403
6.375% 09/30/01 500 500,684
7.500% 11/15/01 1,650 1,685,752
5.875% 11/30/01 2,290 2,275,003
6.625% 04/30/02 1,215 1,223,881
5.750% 10/31/02 800 788,870
7.000% 07/15/06 455 465,778
5.625% 05/15/08 223 209,422
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $9,387,836) 9,261,456
------------
COMMERCIAL PAPER -- 3.9%
Bishops Gate
6.500% 01/12/00 12,000 11,980,500
(Cost $11,980,500) ------------
SHARES
----------
TEMPORARY INVESTMENTS -- 6.5%
Goldman Sachs Financial Square
Money Market Portfolio 9,859,531 9,859,531
Goldman Sachs Institutional Liquid Assets
Money Market Portfolio 9,976,941 9,976,941
J.P. Morgan Institutional Prime
Money Market Portfolio 174 174
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $19,836,646) 19,836,646
------------
TOTAL INVESTMENTS -- 101.1%
(Cost $320,002,636) 309,103,936
------------
VALUE(DAGGER)
-------------
OTHER ASSETS AND LIABILITIES -- (1.1%)
Interest receivable and other assets $ 3,407,561
Receivable for capital stock sold 277,049
Payable for securities purchased (5,311,656)
Payable for capital stock redeemed (30,644)
Dividends payable (1,637,443)
Accrued expenses (167,294)
------------
(3,462,427)
------------
NET ASSETS -- 100.0%
Applicable to 30,493,959
Institutional Shares,
770,084 N Shares and
14,294 A Shares
outstanding, $.001 par
value; 300,000,000
authorized shares (Note 7) $305,641,509
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
SHARE ($297,976,924/30,493,959) $ 9.77
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($7,524,915/770,084) $ 9.77
======
NET ASSET VALUE AND REDEMPTION
PRICE PER A SHARE ($139,670/14,294) $ 9.77
======
MAXIMUM PUBLIC OFFERING PRICE
PER A SHARE ($9.77/0.965) (NOTE 5) $10.12
======
- ----------
(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.
See Notes to Financial Statements.
36
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
ASSET-BACKED SECURITIES -- 19.8%
AK Bank Series 1998-A, Class 1
8.678% 07/15/05 $ 1,300 $ 1,260,187
ARG Funding Corp. Series 1999-1A, Class A2
5.880% 05/20/03 1,400 1,362,682
BankAmerica Manufactured Housing
Contract Series 1998-2, Class B1
7.930% 12/10/25 2,284 1,256,200
California Infrastructure Pacific Gas &
Electric Series 1997-1, Class A7
6.420% 09/25/08 2,055 1,989,083
Capita Equipment Receivables Trust
Series 1996-1, Class A4
6.280% 06/15/00 84 83,860
Case Equipment Loan Trust Series 1997-A,
Class B
6.700% 03/15/04 750 727,591
Charming Shoppes Master Trust
Series 1997-1, Class A
6.813% 04/15/06 2,500 2,436,719
Chemical Credit Card Master Trust
Series 1995-2, Class A
6.230% 06/15/03 610 610,046
Citibank Credit Card Master Trust I
Series 1997-2, Class B
6.700% 02/15/04 1,000 991,114
Discover Card Master Trust I Series 1999-1,
Class A
5.300% 08/15/04 2,250 2,181,375
First Plus Home Loan Trust Series 1997-3,
Class A6
7.080% 07/10/17 1,125 1,109,781
Green Tree Financial Corp. Series 1997-7,
Class A8
6.860% 07/15/29 3,301 3,104,855
Household Credit Card Master Trust I
Series 1995-1, Class A
6.633% 12/15/02 780 780,050
Household Home Equity Loan Trust
Series 1999-1, Class A3
7.210% 10/20/30 2,000 1,995,600
MBNA Master Credit Card Trust
Series 1998-C, Class C
6.350% 11/15/05 1,250 1,200,000
MBNA Master Credit Card Trust
Series 1999-K, Class C
7.413% 03/15/05 3,500 3,500,000
Metris Master Trust Series 1997-1, Class A
6.870% 10/20/05 3,350 3,303,397
SBC Glacier Finance, Ltd. Series 1997-1,
Class A
6.280% 09/10/04 1,500 1,490,550
Team Fleet Financing Corp. Series 1997-1,
Class A
7.350% 05/15/03 1,250 1,245,960
Toyota Auto Lease Trust Series 1997-A, Class B
6.750% 04/26/04 1,500 1,466,250
-------------
TOTAL ASSET-BACKED SECURITIES
(Cost $33,798,050) 32,095,300
-------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 29.8%
Asset Securitization Corp. Series 1997-D4,
Class PS1 IO
1.031% 04/14/29 $15,919 $ 960,119
Chase Commercial Mortgage Securities
Corp. Series 1997-1, Class A1
7.270% 07/19/04 1,386 1,390,305
Chase Mortgage Finance Corp.
Series 1993-0, Class A5
6.600% 12/25/09 584 570,745
Chase Mortgage Finance Corp.
Series 1999-AS2, Class 2A4
6.500% 07/25/29 4,200 3,884,160
Chase Mortgage Finance Corp.
Series 1999-S10, Class A18
6.500% 08/25/29 2,700 2,529,360
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A4
5.946% 11/25/08 2,337 2,318,468
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A5
6.944% 11/25/08 786 727,661
Citicorp Mortgage Securities, Inc.
Series 1993-13, Class A6
8.500% 11/25/08 473 471,785
Countrywide Funding Corp. Series 1994-11,
Class A12
3.683% 05/25/24 52 51,548
DLJ Commercial Mortgage Corp.
Series 1998-CF2, Class S IO
0.848% 11/12/31 28,151 1,381,157
DLJ Mortgage Acceptance Corp.
Series 1996-M, Class A1
7.526% 11/28/11 617 587,790
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
6.461% 05/25/28 1,494 1,379,097
Federal Home Loan Mortgage Corp.
Series 1848, Class PG
7.000% 05/15/26 4,773 4,518,599
Federal Home Loan Mortgage Corp.
Series 1875, Class SA IO
7.700% 09/15/03 6,200 1,046,255
Federal Home Loan Mortgage Corp.
Series 2075, Class QG
6.250% 12/15/26 3,000 2,761,312
Federal Home Loan Mortgage Corp.
Series 2131, Class VD
6.000% 05/15/14 2,412 2,164,565
Federal National Mortgage Association
Series 145, Class 1 PO
9.370% 06/25/22 1,367 1,018,522
Federal National Mortgage Association
Series 1993-210, Class S
10.094% 11/25/23 1,145 917,789
Federal National Mortgage Association
Series 1996-53, Class PE
6.500% 11/18/10 3,175 3,094,224
See Notes to Financial Statements.
37
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 $ 9,696 $ 503,235
J.P. Morgan Commercial Mortgage Finance
Corp. Series 1999-C7, Class A2
6.507% 10/15/35 1,750 1,620,579
LB Commercial Conduit Mortgage Trust
Series 1999-C1, Class X IO
0.692% 07/15/23 26,675 1,117,677
Lehman Structured Securities Corp.
Series 1999-2, Class A
6.500% 11/25/21 2,474 2,317,882
Merrill Lynch Mortgage Investors, Inc.
Series 1998-C2, Class A1
6.220% 02/15/30 1,022 986,422
Morgan Stanley Capital I Series 1998-WF1,
Class A1
6.250% 07/15/07 143 137,987
Morgan Stanley Capital I Series 1999-WF1,
Class A2
6.210% 09/15/08 1,080 991,030
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 1,400 1,392,239
PNC Mortgage Securities Corp.
Series 1997-5, Class A8
6.750% 10/25/27 2,188 2,171,459
Residential Asset Securitization Trust
Series 1997-A8, Class A3
7.000% 10/25/27 113 112,426
Residential Asset Securitization Trust
Series 1998-A5, Class A5
6.750% 06/25/28 3,500 3,315,560
Residential Funding Mortgage Security I
Series 1993-S20, Class A11
7.250% 06/25/08 1,635 1,624,080
Structured Asset Securities Corp.
Series 1998-R3, Class A1 IO
6.100% 01/15/13 1,735 317,680
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $50,698,917) 48,381,717
-------------
MORTGAGE-BACKED SECURITIES -- 9.8%
Federal National Mortgage Association
7.000% 01/15/30 4,800 4,643,250
Federal National Mortgage Association
Pool #305555
9.000% 01/01/25 145 152,624
Federal National Mortgage Association
Pool #323668
6.000% 08/01/13 5,800 5,508,190
Federal National Mortgage Association
Pool #359740
7.000% 10/01/26 160 155,442
Federal National Mortgage Association
Pool #364248
7.000% 01/01/27 268 260,706
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Federal National Mortgage Association
Pool #364731
7.000% 12/01/26 $ 164 $ 159,085
Government National Mortgage Association
Pool #780167
7.000% 12/15/24 5,164 4,993,252
-------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $16,187,677) 15,872,549
-------------
CORPORATE BONDS -- 26.5%
ELECTRIC -- 2.0%
Pacific Gas & Electric Co.
7.050% 03/01/24 1,970 1,814,862
Public Service Electric & Gas Co.
6.500% 05/01/04 1,000 966,250
Texas Utilities Electric Co.
6.750% 04/01/03 500 492,500
-------------
3,273,612
-------------
FINANCE - BANK -- 2.7%
BankAmerica Institutional Capital
8.070% 12/31/26 775 741,094
Citigroup, Inc.
7.875% 05/15/25 380 376,675
Mellon Financial Co.
6.300% 06/01/00 500 499,588
Providian National Bank
6.650% 02/01/04 1,900 1,809,750
Sanwa Finance Aruba AEC
8.350% 07/15/09 1,000 1,008,750
-------------
4,435,857
-------------
FINANCE - NON-BANK -- 6.3%
Associates Corp. of North America
Euro Bond
6.875% 06/20/02 355 352,781
Camden Property Trust
7.000% 04/15/04 2,000 1,925,000
Commercial Credit Co.
7.750% 03/01/05 210 213,937
Finova Capital Corp.
7.625% 09/21/09 1,820 1,801,800
General Motors Acceptance Corp.
5.800% 04/09/01 1,000 986,250
6.850% 06/17/04 1,900 1,873,875
Household Finance Corp.
6.000% 05/01/04 1,000 950,000
Lehman Brothers Holdings, Inc.
8.800% 03/01/15 630 663,075
PaineWebber Group, Inc.
6.750% 02/01/06 1,000 948,750
Salomon Smith Barney Holdings, Inc.
5.875% 02/01/01 200 198,000
6.500% 10/15/02 200 196,750
-------------
10,110,218
-------------
See Notes to Financial Statements.
38
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
CORPORATE BONDS (CONTINUED)
INDUSTRIAL -- 10.9%
A.H. Belo Corp.
7.250% 09/15/27 $ 1,500 $ 1,318,125
Air Products & Chemicals, Inc.
6.862% 10/25/03 2,250 2,221,875
Cendant Corp.
7.750% 12/01/03 700 693,000
Cox Communications, Inc.
6.690% 09/20/04 1,800 1,737,000
Cummins Engine Co., Inc.
5.650% 03/01/98 1,055 663,331
Ford Motor Co.
7.500% 08/01/26 360 351,900
6.375% 02/01/29 1,710 1,440,675
Fort James Corp.
6.700% 11/15/03 2,000 1,947,500
Hertz Corp.
6.500% 04/01/00 500 500,000
Honeywell, Inc.
7.350% 05/15/00 200 200,750
International Business Machines Corp.
7.000% 10/30/25 1,720 1,629,700
Monsanto Co.
5.750% 12/01/05 2,260 2,067,900
Procter & Gamble Co. Euro Bond
9.625% 01/14/01 400 412,000
Time Warner Entertainment, Inc.
8.375% 03/15/23 2,175 2,262,000
Wal-Mart Stores, Inc.
9.100% 07/15/00 100 101,500
Wal-Mart Stores, Inc. Euro Bond
6.750% 05/24/02 125 124,375
-------------
17,671,631
-------------
OIL -- 1.0%
Conoco, Inc.
6.950% 04/15/29 245 222,031
Petro Mexicanos Finance, Ltd.
5.720% 11/15/03 1,365 1,327,463
-------------
1,549,494
-------------
TELEPHONES -- 2.5%
Airtouch Communications, Inc.
6.650% 05/01/08 450 423,563
GTE North, Inc.
6.400% 02/15/05 1,265 1,214,400
Sprint Capital Corp.
6.900% 05/01/19 990 903,375
Worldcom, Inc.
6.950% 08/15/28 1,625 1,482,813
-------------
4,024,151
-------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
CORPORATE BONDS (CONTINUED)
TRANSPORTATION -- 1.1%
CSX Corp.
7.250% 05/01/27 $ 1,610 $ 1,565,725
Federal Express Corp.
7.500% 01/15/18 96 93,015
6.720% 01/15/22 166 153,060
-------------
1,811,800
-------------
TOTAL CORPORATE BONDS
(Cost $44,305,613) 42,876,763
-------------
SUPRANATIONAL BONDS -- 1.3%
African Development Bank
(Cost $2,037,444)
7.750% 12/15/01 2,000 2,030,000
-------------
YANKEE BONDS -- 4.8%
Banco Santiago S.A.
7.000% 07/18/07 1,610 1,434,913
Cable & Wireless Communications Notes
6.625% 03/06/05 465 459,188
Empresa Nacional Electric
7.750% 07/15/08 1,700 1,615,000
Korea Development Bank
7.375% 09/17/04 1,045 1,025,406
Korea Electric Power Corp.
7.000% 02/01/27 150 138,563
Korea Electric Power Global
6.375% 12/01/03 605 573,994
Sony Corp.
6.125% 03/04/03 2,210 2,143,700
United Utilities P.L.C.
6.450% 04/01/08 500 455,625
-------------
TOTAL YANKEE BONDS
(Cost $8,233,805) 7,846,389
-------------
U.S. TREASURY OBLIGATIONS -- 8.8%
U.S. TREASURY BILLS* -- 0.2%
5.500% 06/22/00 250 243,504
-------------
U.S. TREASURY BONDS -- 4.6%
8.875% 02/15/19 2,243 2,731,027
8.750% 08/15/20 3,935 4,768,636
-------------
7,499,663
-------------
U.S. TREASURY NOTES -- 4.0%
6.625% 07/31/01 365 367,272
7.500% 11/15/01 510 521,185
5.625% 02/15/06 1,400 1,340,222
7.000% 07/15/06 1,650 1,690,654
5.625% 05/15/08 2,788 2,623,664
-------------
6,542,997
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $14,730,876) 14,286,164
-------------
See Notes to Financial Statements.
39
<PAGE>
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
MUNICIPAL BONDS -- 0.8%
Atlanta, Georgia, Water & Wastewater
Revenue Bonds Series A
(Cost $1,430,412)
5.000% 11/01/38 $ 1,675 $ 1,367,219
------------
SHARES
----------
TEMPORARY INVESTMENTS -- 1.0%
Goldman Sachs Financial Square
Money Market Portfolio 162,984 162,984
Goldman Sachs Institutional Liquid Assets
Money Market Portfolio 1,378,219 1,378,219
J.P. Morgan Institutional Prime
Money Market Portfolio 11,051 11,051
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $1,552,254) 1,552,254
------------
TOTAL INVESTMENTS -- 102.6%
(Cost $172,975,048) 166,308,355
------------
OTHER ASSETS AND LIABILITIES -- (2.6%)
Interest receivable and other assets 2,088,620
Receivable for capital stock sold 310
Payable for securities purchased (5,012,626)
Payable for capital stock redeemed (647,213)
Dividends payable (531,003)
Futures margin payable (52,812)
Accrued expenses (85,347)
------------
(4,240,071)
------------
VALUE(DAGGER)
------------
NET ASSETS -- 100.0%
Applicable to 16,603,153 Institutional Shares,
469,368 N Shares and 2,764 A Shares of
beneficial interest outstanding,
$.001 par value (Note 7) $162,068,284
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
SHARE ($157,586,821/16,603,153) $9.49
=====
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($4,455,225/469,368) $9.49
=====
NET ASSET VALUE AND REDEMPTION
PRICE PER A SHARE ($26,238/2,764) $9.49
=====
MAXIMUM PUBLIC OFFERING PRICE
PER A SHARE ($9.49/0.955) (NOTE 5) $9.94
=====
- ------------
(DAGGER) See Note 2a to the Financial Statements.
* Security pledged as collateral for futures contracts.
IO -- Interest Only Security.
PO -- Principal Only Security; interest rate is effective yield.
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
-------------- ------------
Futures Contracts - Long Position
U.S. Treasury Notes, March 2000 130 $ (222,858)
=== ==========
See Notes to Financial Statements.
40
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
AGENCY OBLIGATIONS -- 40.7%
AID - Honduras
13.000% 06/01/01 $ 576 $ 593,506
AID - Peru
9.980% 08/01/08 3,060 3,339,128
Federal Farm Credit Bank
7.170% 04/25/02 3,500 3,536,645
Federal Home Loan Bank
5.655% 07/10/01 3,500 3,457,962
4.860% 10/05/01 3,500 3,403,898
Federal Home Loan Mortgage Corp.
6.250% 07/15/04 2,500 2,443,750
7.010% 07/11/07 850 833,503
5.125% 10/15/08 5,000 4,386,039
Federal National Mortgage Association
5.125% 02/13/04 3,470 3,263,115
6.400% 06/14/04 2,085 2,023,130
5.750% 06/15/05 2,000 1,902,108
6.510% 05/06/08 2,000 1,901,868
Private Export Funding Corp.
7.030% 10/31/03 1,650 1,660,312
Rowan Cos., Inc.
6.150% 07/01/10 4,034 3,763,561
Small Business Administration Participation
Certificates Series 1995-20J, Class 1
6.850% 10/01/15 2,822 2,739,214
Small Business Administration Participation
Certificates Series 1997-10C, Class 1
6.950% 05/01/07 1,210 1,193,619
------------
TOTAL AGENCY OBLIGATIONS
(Cost $41,576,201) 40,441,358
------------
ASSET-BACKED SECURITIES -- 11.0%
Citibank Credit Card Master Trust I
Series 1998-3, Class A
5.800% 02/07/05 525 508,462
Citibank Credit Card Master Trust I
Series 1999-5, Class A
6.100% 05/15/08 1,000 948,126
Contimortgage Home Equity Loan Trust
Series 1998-2, Class A5
6.280% 09/15/16 2,500 2,425,894
Green Tree Home Equity Loan Trust
Series 1998-A, Class A5 IO
8.000% 06/15/29 10,00 0 853,125
Green Tree Home Equity Loan Trust
Series 1999-A, Class A3
5.980% 04/15/18 2,875 2,815,703
MBNA Master Credit Card Trust
Series 1999-I, Class A
6.400% 01/18/05 1,455 1,440,887
Metris Master Trust Series 1997-1, Class A
6.870% 10/20/05 2,000 1,972,177
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $11,223,268) 10,964,374
------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 9.4%
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
6.461% 05/28/28 $1,211 $ 1,117,350
Federal Home Loan Mortgage Corp.
Series 202 IO
6.500% 04/01/29 1,830 623,252
Federal Home Loan Mortgage Corp.
Series 2171, Class B
6.279% 06/15/09 3,000 2,770,547
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 6,539 339,364
Federal National Mortgage Association
Series 1998-M2, Class CP1 IO
0.945% 02/25/02 51,375 921,137
Federal National Mortgage Association
Series 1998-T1, Class A
6.654% 12/28/28 2,065 1,963,070
Government National Mortgage Association
Series 1999-2, Class C PO
4.433% 12/20/23 2,272 1,580,407
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $10,011,864) 9,315,127
------------
MORTGAGE-BACKED SECURITIES -- 17.9%
Federal Home Loan Mortgage Corp.
Pool #865008
7.956% 02/01/18 34 34,764
Federal National Mortgage Association
6.500% 01/15/30 2,600 2,450,094
Federal National Mortgage Association
Pool #8217
11.000% 12/01/15 914 1,010,064
Federal National Mortgage Association
Pool #73738
6.825% 11/01/01 3,692 3,713,173
Federal National Mortgage Association
Pool #73755
6.890% 01/01/02 2,835 2,811,275
Federal National Mortgage Association
Pool #303724
6.000% 01/01/11 2,372 2,273,335
Federal National Mortgage Association
Pool #375255
6.920% 07/01/04 978 969,010
Government National Mortgage Association
Pool #8720
6.500% 10/20/25 181 184,876
Government National Mortgage Association
Pool #162989
9.000% 05/15/16 11 11,957
Government National Mortgage Association
Pool #227125
9.000% 07/15/17 14 15,639
Government National Mortgage Association
Pool #346458
8.000% 03/15/23 153 156,629
See Notes to Financial Statements.
41
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
-------- -------- ----- ------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Government National Mortgage Association
Pool #352110
7.000% 08/15/23 $2,218 $ 2,160,828
Government National Mortgage Association
Pool #780389
9.000% 08/15/09 1,912 2,030,951
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $17,741,042) 17,822,595
------------
U.S. TREASURY OBLIGATIONS -- 18.1%
U.S. TREASURY BILLS -- 0.1%
4.780% 02/17/00 120 119,240
-----------
U.S. TREASURY BONDS -- 10.4%
8.875% 08/15/17 2,659 3,214,013
8.875% 02/15/19 638 776,815
8.750% 08/15/20 5,250 6,362,221
-----------
10,353,049
-----------
U.S. TREASURY NOTES -- 7.6%
7.000% 07/15/06 7,400 7,582,326
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $19,486,028) 18,054,615
-----------
SHARES
------
TEMPORARY INVESTMENTS -- 4.3%
Goldman Sachs Financial Square Treasury
Obligation Portfolio
(Cost $4,256,228) 4,256,228 4,256,228
-----------
TOTAL INVESTMENTS -- 101.4%
(Cost $104,294,631) 100,854,297
-----------
VALUE(DAGGER)
------------
OTHER ASSETS AND LIABILITIES -- (1.4%)
Interest receivable and other assets $ 1,639,113
Receivable for capital stock sold 35,412
Payable for securities purchased (2,480,075)
Payable for capital stock redeemed (488,091)
Dividends payable (61,987)
Accrued expenses (37,483)
-----------
(1,393,111)
-----------
NET ASSETS -- 100.0%
Applicable to 6,063,320 Institutional Shares,
312,923 N Shares and 14,894 A Shares of
beneficial interest outstanding,
$.001 par value (Note 7) $99,461,186
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
SHARE ($94,359,671/6,063,320) $15.56
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($4,869,717/312,923) $15.56
======
NET ASSET VALUE AND REDEMPTION
PRICE PER A SHARE ($231,798/14,894) $15.56
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($15.56/0.965) (NOTE 5) $16.12
======
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
IO -- Interest Only Security.
PO -- Principal Only Security; interest rate is effective yield.
See Notes to Financial Statements.
42
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS -- 97.4%
ALABAMA -- 0.7%
University of Alabama, Birmingham, General
Receipts Revenue Bonds
5.375% 10/01/11 $1,250 $ 1,242,187
-----------
ARIZONA -- 7.2%
Arizona Health Facilities Authority, Arizona
Hospital Systems Revenue Bonds
(Samaritan Health Services)
6.250% 12/01/06 4,000 4,305,000
Arizona State Transportation Board
Highway Revenue Bonds
5.200% 07/01/09 2,215 2,217,769
Salt River Project, Arizona Agriculture &
Improvement District Revenue Bonds
Series B
6.500% 01/01/04 6,050 6,428,125
-----------
12,950,894
-----------
ARKANSAS -- 0.6%
Arkansas State Development Finance
Authority Revenue Bonds (State Agencies
Facilities-Department of Corrections
Project) Series A
5.300% 11/01/12 1,145 1,139,275
-----------
CALIFORNIA -- 5.7%
Central Coast Water Authority, California
Revenue Bonds (State Water Project
Regional Facilities)
6.500% 10/01/14 6,000 6,412,500
Foothill Eastern Corridor Agency,
California Toll Road Revenue Bonds
5.375% 01/15/15 3,900 3,787,875
Redding, California, Joint Powers Financing
Authority Electric System Revenue Bonds
Series A
5.250% 06/01/15 150 143,062
-----------
10,343,437
-----------
COLORADO -- 4.1%
Arapahoe County, Colorado, School District
No. 005 Cherry Creek General Obligation
Bonds
6.000% 12/15/14 2,000 2,055,000
6.000% 12/15/15 1,500 1,530,000
Denver, Colorado, City & County Airport
Revenue Bonds Series A
7.500% 11/15/06 3,000 3,281,250
Metropolitan Football Stadium District,
Colorado Sales Tax Capital Appreciation
Revenue Bonds Series A
0.000% 01/01/11 1,000 545,000
-----------
7,411,250
-----------
DELAWARE -- 2.1%
Delaware State General Obligation Bonds
6.125% 04/01/01 3,700 3,774,000
-----------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
FLORIDA -- 3.1%
Inland Protection Financing Corp., Florida
Special Obligation Revenue Bonds
5.000% 07/01/02 $4,000 $ 4,045,000
Miami-Dade County, Florida, Educational
Facilities Authority Revenue Bonds
Series A
5.750% 04/01/14 1,520 1,540,900
-----------
5,585,900
-----------
GEORGIA -- 0.5%
Metropolitan Atlanta, Georgia, Rapid Transit
Authority Sales Tax Revenue Bonds
(Second Indenture) Series A
5.625% 07/01/20 800 762,000
Metropolitan Atlanta, Georgia, Rapid Transit
Authority Sales Tax Revenue Bonds
(Second Indenture) Series B
5.100% 07/01/13 100 94,375
-----------
856,375
-----------
HAWAII -- 1.1%
Hawaii State General Obligation Bonds
Series CT
5.250% 09/01/08 1,900 1,907,125
-----------
ILLINOIS -- 2.4%
University of Illinois, University Auxiliary
Facilities Systems Revenue Bonds
Series A
6.000% 04/01/14 2,660 2,719,850
6.000% 04/01/15 1,560 1,583,400
-----------
4,303,250
-----------
INDIANA -- 5.2%
Anderson, Indiana, Economic Development
Revenue Bonds (Anderson University
Project)
5.000% 10/01/07 1,010 958,237
5.000% 10/01/08 1,015 957,906
Indiana Health Facility Financing Authority
Hospital Revenue Bonds (Clarian Health
Partners) Series A
6.000% 02/15/05 4,000 4,140,000
Indiana University Revenue Bonds
(Student Fee) Series M
6.000% 08/01/14 3,170 3,253,212
-----------
9,309,355
-----------
KANSAS -- 0.4%
Johnson County, Kansas, General Obligation
Bonds (University School District No. 229)
Series A
5.000% 10/01/08 740 735,375
-----------
See Notes to Financial Statements.
43
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
KENTUCKY -- 0.9%
Kentucky State Turnpike Authority
Economic Development Revenue Bonds
(Revitalization Projects)
5.500% 07/01/11 $1,500 $ 1,505,625
Kentucky State Turnpike Authority Toll Road
Revenue Bonds Series A
5.500% 07/01/07 50 50,078
-----------
1,555,703
-----------
LOUISIANA -- 0.7%
Mississippi River Bridge Authority,
Louisiana Revenue Bonds
6.625% 11/01/06 1,130 1,203,450
-----------
MASSACHUSETTS -- 3.9%
Massachusetts State Health & Educational
Facilities Authority Revenue Bonds
(Northeastern University) Series D
7.125% 10/01/00 1,500 1,557,180
Southbridge, Massachusetts, General
Obligation Bonds
6.375% 01/01/12 1,000 1,046,250
Springfield, Massachusetts, General
Obligation Bonds (Municipal Purposes
Loan)
5.250% 10/01/12 1,515 1,467,656
6.000% 10/01/14 1,000 1,025,000
6.000% 10/01/15 2,000 2,037,500
-----------
7,133,586
-----------
MICHIGAN -- 7.5%
Chippewa County, Michigan, Hospital
Finance Revenue Bonds (Chippewa
County War Memorial Hospital) Series A
5.000% 11/01/04 1,075 1,034,687
Chippewa County, Michigan, Hospital
Finance Revenue Bonds (Chippewa
County War Memorial Hospital) Series B
5.000% 11/01/04 1,365 1,313,812
Detroit, Michigan, Water Supply System
Revenue Bonds Series A
5.300% 07/01/09 450 451,687
Michigan State Building Authority Revenue
Bonds Series II
6.750% 10/01/07 3,000 3,168,750
Michigan State Hospital Finance Authority
Revenue Bonds (Ascension Health Credit)
Series A
5.250% 11/15/09 850 839,375
Michigan State Hospital Finance Authority
Revenue Bonds (Ascension Health Credit)
Series B
5.375% 11/15/33 3,630 3,625,463
Michigan State Hospital Finance Authority
Revenue Bonds (Chelsea Community
Hospital)
5.375% 05/15/19 2,500 2,065,625
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
University of Michigan, Revenue Bonds
(Major Capital Project Student Fee B)
5.700% 04/01/09 $1,000 $ 1,032,500
-----------
13,531,899
-----------
MISSISSIPPI -- 1.8%
Mississippi River Bridge Authority
Revenue Bonds
6.750% 11/01/12 3,000 3,180,000
-----------
MONTANA -- 1.6%
Forsyth, Montana, Pollution Control
Revenue Bonds (Portland General
Electric Co. Project) Series A
4.600% 05/01/33 3,000 2,962,500
-----------
NEW JERSEY -- 4.3%
New Jersey State Highway Authority,
Garden State Parkway General
Revenue Bonds
6.200% 01/01/10 4,000 4,265,000
New Jersey State Transportation Authority
Revenue Bonds Series A
5.000% 06/15/03 3,500 3,539,375
-----------
7,804,375
-----------
NEW YORK -- 10.9%
New York City, New York, General Obligation
Bonds Series H
6.000% 08/01/10 3,000 3,131,250
5.250% 03/15/15 4,000 3,705,000
New York City, New York, Transitional
Finance Authority Revenue Bonds
(Future Tax Secured) Series A
5.250% 08/15/11 1,180 1,157,875
New York State Dormitory Authority
Lease Revenue Bonds (State University
Dormitory Facilities) Series C
5.750% 07/01/13 1,515 1,535,831
New York State Environmental Facilities
Corp. State Clean Water & Drinking
Revolving Funds Pooled Financing
Revenue Bonds Series B
5.500% 04/15/12 1,580 1,583,950
5.500% 10/15/12 2,420 2,426,050
New York State General Obligation Bonds
Series B
6.375% 08/15/00 3,750 3,800,775
New York State Thruway Authority Highway
& Bridge Trust Fund Revenue Bonds
Series B
5.000% 04/01/07 1,100 1,097,250
5.250% 04/01/14 1,400 1,342,250
-----------
19,780,231
-----------
See Notes to Financial Statements.
44
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA -- 0.0%
Cumberland County, North Carolina, Finance
Corp. Installment Payment Detention
Center & Mental Health Revenue Bonds
5.125% 06/01/12 $ 100 $ 96,375
-----------
OHIO -- 13.3%
Butler County, Ohio, Hospital Facility
Revenue Bonds (Middletown Regulatory
Hospital Project)
6.750% 11/15/10 2,250 2,370,938
Cuyahoga County, Ohio, Economic
Development Revenue Bonds (University
School Project) Series B
5.300% 12/01/29 1,500 1,477,500
Cuyahoga County, Ohio, Hospital Revenue
Improvement Bonds (Metrohealth
System Project)
6.150% 02/15/29 1,645 1,554,525
Cuyahoga County, Ohio, Hospital Revenue
Improvement Bonds (Metrohealth
System Project) Series A
5.500% 02/15/12 1,700 1,700,000
Franklin County, Ohio, Development
Revenue Bonds (American Chemical
Society Project)
5.000% 10/01/07 1,410 1,383,563
5.125% 10/01/08 650 638,625
5.500% 10/01/12 4,750 4,649,063
Hamilton, Ohio, City School District School
Improvement General Obligation Bonds
Series A
6.150% 12/01/13 200 212,000
6.150% 12/01/16 1,270 1,320,800
Ohio State Building Authority, State Adult
Correctional Facilities Revenue Bonds
Series A
5.500% 10/01/11 2,000 2,020,000
Ohio State Higher Educational Facilities
Community Revenue Bonds (John Carroll
University Project)
5.200% 04/01/09 250 246,250
5.300% 04/01/10 285 280,725
5.400% 04/01/11 750 740,625
Ohio State University General Receipts
Revenue Bonds Series A
5.750% 12/01/13 1,000 1,020,000
5.750% 12/01/14 1,000 1,011,250
6.000% 12/01/17 1,000 1,015,000
University of Akron, Ohio, General Receipts
Revenue Bonds
5.750% 01/01/11 1,010 1,042,825
5.750% 01/01/12 1,295 1,327,375
-----------
24,011,064
-----------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA -- 5.5%
Delaware River Port Authority of
Pennsylvania & New Jersey Revenue
Bonds
5.750% 01/01/14 $1,000 $ 1,013,750
5.750% 01/01/15 1,000 1,006,250
6.000% 01/01/17 5,500 5,596,250
Pottsville, Pennsylvania, Hospital Authority
Revenue Bonds (Ascension Health Credit)
Series A
5.200% 11/15/09 2,285 2,247,869
-----------
9,864,119
-----------
PUERTO RICO -- 0.6%
Puerto Rico Municipal Finance Agency
General Obligation Bonds Series A
6.000% 08/01/16 1,000 1,023,750
-----------
RHODE ISLAND -- 0.2%
Cranston, Rhode Island, General Obligation
Bonds
4.700% 11/15/04 205 205,000
5.150% 11/15/08 125 125,000
-----------
330,000
-----------
SOUTH CAROLINA -- 1.5%
South Carolina State Capital Improvement
General Obligation Bonds Series V
6.500% 02/01/00 2,635 2,639,796
-----------
TEXAS -- 1.2%
West Central Texas Municipal Water
District Revenue Bonds, Water
Transmission Line Contract
6.750% 11/01/03 2,000 2,140,000
-----------
UTAH -- 2.8%
Utah State General Obligation Bonds
6.000% 07/01/01 5,000 5,112,500
-----------
VERMONT -- 0.5%
Vermont Housing Finance Agency Revenue
Bonds (Multi-Family Mortgage) Series C
5.800% 08/15/16 1,000 985,000
-----------
VIRGINIA -- 1.6%
Henrico County, Virginia, Economic
Development Authority Public Facilities
Lease Revenue Bonds (Regional Jail
Project)
5.125% 11/01/11 490 474,688
5.250% 11/01/12 750 731,250
5.375% 11/01/13 1,715 1,678,556
Loudoun County, Virginia, Public
Improvement General Obligation Bonds
Series C
5.000% 12/01/05 100 100,875
-----------
2,985,369
-----------
See Notes to Financial Statements.
45
<PAGE>
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
WASHINGTON -- 0.1%
King County, Washington, Sewer Revenue
Bonds Second Series
5.125% 01/01/08 $ 245 $ 243,775
------------
WEST VIRGINIA -- 3.5%
West Virginia State General Obligation
Bonds
5.750% 06/01/13 6,250 6,367,188
------------
WISCONSIN -- 1.9%
Hartford, Wisconsin, Sewer System
Revenue Bonds
4.750% 04/01/03 1,225 1,212,750
Wisconsin State Transportation Revenue
Bonds Series A
7.500% 07/01/04 2,000 2,217,500
------------
3,430,250
------------
TOTAL MUNICIPAL BONDS
(Cost $176,408,468) 175,939,353
------------
SHARES VALUE(DAGGER)
------ ------------
TEMPORARY INVESTMENTS -- 4.0%
Federated Tax-Free Obligation Fund 6,245,164 $ 6,245,164
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 899,711 899,711
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $7,144,875) 7,144,875
------------
TOTAL INVESTMENTS -- 101.4%
(Cost $183,553,343) 183,084,228
------------
OTHER ASSETS AND LIABILITIES -- (1.4%)
Interest receivable and other assets 2,589,304
Receivable for capital stock sold 16
Payable for securities purchased (4,342,830)
Dividends payable (735,233)
Accrued expenses (39,937)
------------
(2,528,680)
------------
NET ASSETS -- 100.0%
Applicable to 17,393,736 Institutional
Shares and 268,294 N Shares of beneficial
interest outstanding, $.001 par value (Note 7) $180,555,548
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL SHARE
($177,812,893/17,393,736) $10.22
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($2,742,655/268,294) $10.22
======
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
See Notes to Financial Statements.
46
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS -- 96.6%
ARIZONA -- 3.1%
Maricopa County, Arizona, Hospital
Revenue Bonds
6.125% 04/01/18 $ 970 $ 902,100
Maricopa County, Arizona, Industrial
Development Authority Multi-Family
Housing Revenue Bonds (Advantage
Electric Projects) Series A
6.500% 07/01/16 1,900 2,018,750
Mesa, Arizona, General Obligation Bonds
5.750% 07/01/14 1,000 1,010,000
------------
3,930,850
------------
CALIFORNIA -- 5.9%
Foothill Eastern Corridor Agency, California
Toll Road Revenue Bonds
5.375% 01/15/14 3,900 3,836,625
Los Angeles, California, United School
District General Obligation Bonds
Series C
5.500% 07/01/17 3,750 3,637,500
------------
7,474,125
------------
COLORADO -- 3.8%
Colorado Springs, Colorado, Utilities
Revenue Bonds Unrefunded Balance
Series A
6.500% 11/15/15 1,000 1,045,000
Pueblo County, Colorado, School District
No. 070 Pueblo Rural General
Obligation Bonds
6.000% 12/01/18 3,770 3,798,275
------------
4,843,275
------------
FLORIDA -- 2.5%
Escambia County, Florida, Health Facilities
Authority Revenue Bonds (Ascension
Health Credit) Series A-1
5.750% 11/15/29 1,150 1,105,437
Miami-Dade County, Florida, Educational
Facilities Authority Revenue Bonds
Series A
5.500% 04/01/18 1,000 961,250
Orlando, Florida, Utilities Commission Water
& Electric Revenue Bonds Series D
6.750% 10/01/17 1,000 1,098,750
------------
3,165,437
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
GEORGIA -- 6.9%
Dalton, Georgia, Utilities Revenue Bonds
5.100% 01/01/10 $ 900 $ 889,875
6.000% 01/01/11 2,000 2,107,500
6.000% 01/01/12 1,000 1,048,750
Forsyth County, Georgia, School District
General Obligation Bonds
6.000% 02/01/14 2,615 2,703,256
6.000% 02/01/15 1,000 1,023,750
5.750% 02/01/18 1,000 991,250
------------
8,764,381
------------
ILLINOIS -- 7.2%
De Kalb & Kane Counties, Illinois,
Community United School District
No. 427 General Obligation Bonds
5.500% 01/01/11 1,125 1,129,219
5.550% 01/01/12 1,125 1,132,031
Illinois Development Finance Authority
Revenue Bonds (School District No. U46
Project)
9.000% 01/01/07 3,250 3,948,750
Illinois State Sales Tax Revenue Bonds
Series V
6.375% 06/15/20 1,000 1,031,250
University of Illinois, University Auxiliary
Facilities Systems Revenue Bonds
Series A
6.000% 04/01/16 1,870 1,888,700
------------
9,129,950
------------
INDIANA -- 2.8%
Indiana University Revenue Bonds
(Student Fee) Series M
6.000% 08/01/15 3,470 3,548,075
------------
MASSACHUSETTS -- 5.2%
Massachusetts State Port Authority
Revenue Bonds Series C
6.125% 07/01/17 1,000 1,018,750
Springfield, Massachusetts, General
Obligation Bonds (Municipal Purposes
Loan)
6.250% 10/01/19 5,490 5,647,838
------------
6,666,588
------------
MICHIGAN -- 8.3%
Detroit, Michigan, Water Supply System
Revenue Bonds
6.500% 07/01/15 1,000 1,078,750
Howell, Michigan, Public Schools General
Obligation Bonds
5.750% 05/01/16 875 865,156
5.800% 05/01/17 1,075 1,061,562
Michigan State Hospital Finance Authority
Revenue Bonds (Ascension Health Credit)
Series A
5.300% 11/15/33 2,500 2,496,875
See Notes to Financial Statements.
47
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
Michigan State Hospital Finance Authority
Revenue Bonds (Chelsea Community
Hospital)
5.000% 05/15/12 $2,380 $ 2,064,650
Oakland County, Michigan, Economic
Development Corp. Limited Obligation
Revenue Bonds (Cranbrook Educational
Community) Series C
6.900% 11/01/14 2,725 3,007,719
------------
10,574,712
------------
MISSISSIPPI -- 2.5%
Mississippi River Bridge Authority Revenue
Bonds
6.750% 11/01/12 3,000 3,180,000
------------
NEW HAMPSHIRE -- 1.0%
New Hampshire Health & Educational
Facilities Authority Revenue Bonds
(Dartmouth College Issue)
5.750% 06/01/19 1,250 1,225,000
------------
NEW JERSEY -- 0.8%
New Jersey State Highway Authority,
Garden State Parkway General Revenue
Bonds
6.200% 01/01/10 1,000 1,066,250
------------
NEW YORK -- 11.1%
New York City, New York, General
Obligation Bonds Series H
6.000% 08/01/13 3,500 3,600,625
New York City, New York, General
Obligation Bonds Series J
5.000% 05/15/17 3,000 2,651,250
New York State Dormitory Authority State
University Dormitory Facilities Lease
Revenue Bonds Series C
5.750% 07/01/14 2,000 2,012,500
New York State Dormitory Authority State
University Educational Facilities Revenue
Bonds
6.000% 05/15/15 2,000 2,037,500
New York State Thruway Authority Service
Contract Local Highway & Bridge
Revenue Bonds
5.750% 04/01/14 2,000 2,012,500
Triborough Bridge & Tunnel Authority,
New York Special Obligation Revenue
Bonds Series A
5.000% 01/01/17 2,000 1,780,000
------------
14,094,375
------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA -- 1.4%
Cumberland County, North Carolina,
Finance Corp. Installment Payment
Detention Center & Mental Health
Revenue Bonds
5.250% 06/01/13 $ 855 $ 819,731
Fayetteville, North Carolina, Public Works
Community Revenue Bonds
5.500% 03/01/16 1,000 967,500
------------
1,787,231
------------
OHIO -- 11.3%
Akron, Ohio, General Obligation Bonds
6.500% 11/01/15 965 1,042,200
5.800% 11/01/20 1,000 985,000
Avon Lake, Ohio, City School District
General Obligation Bonds
5.750% 12/01/14 1,550 1,563,563
Cleveland, Ohio, General Obligation Bonds
5.500% 11/15/13 300 299,250
Cuyahoga County, Ohio, Hospital Revenue
Improvement Bonds (Metrohealth
System Project)
6.150% 02/15/29 5,525 5,221,125
Ohio State University General Receipts
Revenue Bonds Series A
5.750% 12/01/19 1,000 977,500
5.750% 12/01/24 1,200 1,162,500
University of Akron, Ohio General Receipts
Revenue Bonds
6.000% 01/01/15 1,000 1,012,500
6.000% 01/01/16 1,110 1,118,325
University of Cincinnati, Ohio General
Receipts Revenue Bonds Series AO
5.750% 06/01/19 1,000 975,000
------------
14,356,963
------------
PENNSYLVANIA -- 1.6%
Delaware River Port Authority of
Pennsylvania & New Jersey Revenue
Bonds
6.000% 01/01/18 2,000 2,027,500
------------
PUERTO RICO -- 0.4%
Puerto Rico Municipal Finance Agency
General Obligation Bonds Series A
5.500% 08/01/19 500 479,375
------------
RHODE ISLAND -- 1.6%
Cranston, Rhode Island, General Obligation
Bonds
6.375% 11/15/14 500 530,625
6.375% 11/15/17 1,000 1,043,750
5.875% 11/15/19 500 496,250
------------
2,070,625
------------
See Notes to Financial Statements.
48
<PAGE>
HARRIS INSIGHT FUNDS
TAX-EXEMPT BOND FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE(DAGGER)
---------- -------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
TENNESSEE -- 1.3%
Williamson County, Tennessee, Rural
Schools General Obligation Bonds
5.875% 03/01/19 $1,700 $ 1,678,750
------------
TEXAS -- 2.8%
Harris County, Texas, Criminal Justice
Center General Obligation Bonds
5.500% 10/01/12 2,540 2,543,175
Lamar, Texas, Consolidated Independent
School District General Obligation Bonds
5.000% 02/15/17 1,150 1,019,188
------------
3,562,363
------------
VERMONT -- 1.6%
Vermont Housing Finance Agency Revenue
Bonds (Multi-Family Mortgage) Series C
5.800% 08/15/16 2,000 1,970,000
------------
VIRGINIA -- 10.4%
Henrico County, Virginia, Economic
Development Authority Public Facilities
Lease Revenue Bonds (Regional
Jail Project)
5.500% 11/01/14 1,570 1,536,638
6.000% 11/01/16 1,575 1,588,781
6.125% 11/01/17 2,405 2,441,075
Norfolk, Virginia, Water Revenue Bonds
5.875% 11/01/15 1,900 1,914,250
Richmond, Virginia, Public Improvements
General Obligation Bonds Series B
6.500% 07/15/02 2,160 2,257,200
Virginia State Reservoir Authority Clean
Water Revenue Bonds (State Revolving
Fund)
5.500% 10/01/15 1,060 1,040,125
6.000% 10/01/17 1,000 1,016,250
5.750% 10/01/19 1,495 1,466,969
------------
13,261,288
------------
WISCONSIN -- 3.1%
Ashwaubenon, Wisconsin, Community
Development Authority Lease Revenue
Bonds (Arena Project) Series A
5.800% 06/01/29 1,380 1,312,725
Wisconsin State General Obligation Bonds
Series 3
5.250% 11/01/10 2,645 2,631,775
------------
3,944,500
------------
TOTAL MUNICIPAL BONDS
(Cost $123,190,699) 122,801,613
------------
SHARES VALUE(DAGGER)
-------- ------------
TEMPORARY INVESTMENTS -- 5.6%
Federated Tax-Free Obligation Fund 2,613,447 $ 2,613,447
Goldman Sachs Financial Square
Tax-Exempt Money Market Portfolio 4,559,105 4,559,105
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $7,172,552) 7,172,552
------------
TOTAL INVESTMENTS -- 102.2%
(Cost $130,363,251) 129,974,165
------------
OTHER ASSETS AND LIABILITIES -- (2.2%)
Interest receivable and other assets 1,757,847
Receivable for capital stock sold 17
Payable for securities purchased (3,962,793)
Payable for capital stock redeemed (17)
Dividends payable (601,951)
Accrued expenses (31,388)
------------
(2,838,285)
------------
NET ASSETS -- 100.0%
Applicable to 13,091,667 Institutional
Shares and 115,158 N Shares of
beneficial interest outstanding,
$.001 par value (Note 7) $127,135,880
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
SHARE ($126,027,306/13,091,667) $9.63
=====
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($1,108,574/115,158) $9.63
=====
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
See Notes to Financial Statements.
49
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
COMMON STOCK -- 14.0%
CHEMICALS -- 3.6%
Corning, Inc. 14,865 $ 1,916,656
-----------
ELECTRONICS -- 1.7%
Sensormatic Electronics Corp.* 2,513 0
Xilinx, Inc.* 19,604 890,757
-----------
890,757
-----------
MEDIA -- 0.5%
AT&T Corp. (Liberty Media Group-
Class A)* 4,248 241,074
-----------
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 -- 4.7%
EMC Corp.* 8,000 874,000
Hewlett Packard Co. 5,000 569,687
Microsoft Corp.* 8,636 1,007,713
-----------
2,451,400
-----------
RETAIL -- 2.4%
Home Depot, Inc. 18,509 1,268,989
-----------
THRIFT INSTITUTIONS -- 0.7%
Washington Mutual, Inc. 13,249 344,474
-----------
TOTAL COMMON STOCK
(Cost $3,549,404) 7,331,450
-----------
CONVERTIBLE PREFERRED STOCK -- 41.3%
AUTO RELATED -- 0.3%
Fleetwood Capital Trust, 6.000%, 02/15/28,
Series 144A 5,000 178,125
-----------
BANKS -- 3.4%
CNB Capital Trust I, 6.000%, 06/30/28 40,000 1,390,000
National Australia Bank, Ltd., 7.875%,
Series UNIT 13,500 372,937
-----------
1,762,937
-----------
BUSINESS SERVICES -- 0.3%
Central Parking Finance Trust, 7.875%,
Series 144A 10,000 133,750
-----------
CONSTRUCTION -- 1.6%
Kaufman & Broad Home Corp.,
8.250%, 08/16/01 45,000 354,375
Owens Corning Capital LLC, 6.500%, 05/10/25,
Series 144A 14,700 499,800
-----------
854,175
-----------
SHARES VALUE(DAGGER)
-------- ------------
CONVERTIBLE PREFERRED STOCK (CONTINUED)
CONTAINERS -- 1.6%
Owens - Illinois, Inc., 4.750% 15,000 $ 468,750
Sealed Air Corp., $2.00, 04/01/18, Series A 7,500 378,750
-----------
847,500
-----------
ELECTRIC & GAS -- 4.0%
Houston Industries, Inc., 7.000%, 07/01/00 14,000 1,687,000
Texas Utilities Co., 9.250%, 08/16/01 10,000 436,250
-----------
2,123,250
-----------
ELECTRONICS -- 0.9%
Merrill Lynch & Co., Inc., 7.875%, 02/01/01,
Series "CBR" STRYPES 4,750 249,969
Sensormatic Electronics Corp., 6.500%,
Series 144A* 10,000 227,500
-----------
477,469
-----------
ENERGY SERVICES -- 1.1%
Calpine Capital Trust, 5.750%, 11/01/04 5,000 324,375
Hanover Compressor Co. Capital Trust,
7.250%, 12/15/29, Series 144A 4,000 236,500
-----------
560,875
-----------
FOOD & BEVERAGES -- 0.3%
Suiza Capital Trust II, 5.500%, 04/01/28,
Series 144A 5,000 175,000
-----------
FOREST PRODUCTS & PAPER -- 1.5%
Georgia Pacific PEPS, 7.500%, 08/16/04 10,000 511,250
International Paper Capital Trust, 5.250% 5,000 267,500
-----------
778,750
-----------
HEALTH CARE SERVICES -- 0.8%
Hybridon, Inc., 6.500%, 04/01/04, Series A 2,925 73,125
Laboratory Corp. of America, 8.500%, 06/30/12,
Series A 5,000 345,000
-----------
418,125
-----------
HOTELS & RESTAURANTS -- 1.5%
Felcor Lodging Trust, Inc., $1.95, Series A 15,000 232,500
Innkeepers USA Trust, 8.625%, Series A 30,000 528,750
-----------
761,250
-----------
INSURANCE -- 2.4%
American General, 6.000%, 05/31/25,
Series A 9,800 922,425
Conseco Finance Trust IV, 7.000%, 02/16/01,
Series F 15,000 350,625
-----------
1,273,050
-----------
MEDIA -- 1.3%
Cox Communications, Inc., 7.000%, 08/16/02 5,500 374,000
Merrill Lynch & Co., Inc., 6.250%, 07/01/01,
Series "I.G.L." STRYPES 16,800 300,300
-----------
674,300
-----------
See Notes to Financial Statements
50
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- ------------
CONVERTIBLE PREFERRED STOCK (CONTINUED)
MISCELLANEOUS FINANCE -- 4.4%
Archstone Communities Trust, $1.75,
Series A 31,700 $ 891,562
Crescent Real Estate Equities Co., 6.750%,
Series A 10,000 151,250
Equity Residential Properties Trust, 7.250%,
Series G 20,000 395,000
Reckson Associates Realty Corp., 7.625%,
Series A 13,000 258,375
Rouse Co., $3.00, Series B 15,000 489,375
U.S. Restaurant Properties, Inc., 7.720%,
Series A 10,000 138,750
-----------
2,324,312
-----------
OFFICE EQUIPMENT -- 0.6%
Morgan Stanley Dean Witter & Co., 05/30/01
"SUNW" Reset PERQS 40,000 320,000
-----------
OIL & GAS -- 1.9%
Enron Corp., 7.000%, 07/31/02 12,500 234,375
Weatherford International, Inc.,
5.000%, 11/01/27, Series 144A 20,000 750,000
-----------
984,375
-----------
RAILROADS -- 0.8%
Union Pacific Capital Trust, 6.250%, 04/01/28,
Series 144A 10,000 407,500
-----------
RETAIL -- 1.0%
Dollar General STRYPES Trust,
8.500%, 05/15/01 15,000 541,875
-----------
TELEPHONES -- 11.6%
Broadwing, Inc., 7.250%, 03/31/07, Series A 2,041 676,591
QUALCOMM Financial Trust,
5.750%, 03/01/12 4,400 4,325,200
Salomon Smith Barney Holdings, Inc.,
6.250%, 02/01/01, Series CSN 9,800 1,058,400
-----------
6,060,191
-----------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $17,581,948) 21,656,809
-----------
COUPON PAR
RATE MATURITY (000)
- ---------- -------- --------
CONVERTIBLE CORPORATE BONDS -- 42.1%
BANKS -- 0.6%
Bankatlantic Bancorp, Inc.
5.625% 12/01/07 $ 500 302,500
-----------
BUSINESS SERVICES -- 3.0%
Bell Atlantic Financial Services
4.250% 09/15/05 750 930,000
Berkshire Hathaway, Inc.
1.000% 12/02/01 250 627,500
-----------
1,557,500
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ---------- -------- -------- ------------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
CONSTRUCTION -- 1.6%
Lennar Corp.
0.000% 07/29/18 $ 2,100 $ 832,125
----------
DRUGS -- 0.6%
Atrix Laboratories, Inc.
7.000% 12/01/04 500 290,625
----------
ELECTRICAL -- 0.5%
Brightpoint Lyons, Inc.
0.000% 03/11/18 750 244,687
----------
ELECTRONICS -- 16.6%
Activision, Inc.
6.750% 01/01/05 500 501,250
Atmel Corp.
0.000% 04/15/18 1,000 851,880
BEA Systems, Inc.
4.000% 12/15/06 350 409,938
Candescent Technologies Corp., Series 144A
7.000% 05/01/03 300 229,500
Exodus Communications, Inc.
4.750% 07/15/08 500 693,125
Gilat Satellite Networks
6.500% 06/03/04 500 1,426,250
Kent Electronics Corp.
4.500% 09/01/04 475 395,438
Mascotech, Inc.
4.500% 12/15/03 500 366,250
Quantum Corp.
7.000% 08/01/04 225 171,000
Siebel Systems, Inc.
5.500% 09/15/06 300 581,625
Solectron Corp.
0.000% 01/27/19 1,650 1,241,705
Technomatix Technologies, Ltd.
5.250% 08/15/04 630 544,163
Veritas Software Corp.
1.856% 08/13/06 500 1,348,125
----------
8,760,249
----------
HEALTH CARE SERVICES -- 1.8%
Alza Corp.
5.000% 05/01/06 490 515,725
NCS Healthcare, Inc.
5.750% 08/15/04 250 83,438
Wellpoint Health Networks, Inc.
0.000% 07/02/19 500 321,250
----------
920,413
VHOTELS & RESTAURANTS -- 0.1%
Capstar Hotel Corp.
4.750% 10/15/04 100 78,125
----------
See Notes to Financial Statements.
51
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- -------- -------- -------- -------------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
INSURANCE -- 3.3%
American International Group, Inc.
2.250% 07/30/04 $ 975 $ 1,527,094
Loews Corp.
3.125% 09/15/07 250 205,000
-----------
1,732,094
-----------
MACHINERY & EQUIPMENT -- 0.4%
Advanced Energy Industries, Inc.
5.250% 11/15/06 50 59,750
Friede Goldman Halter, Inc., Series 144A
4.500% 09/15/04 200 126,000
-----------
185,750
-----------
MEDIA -- 2.0%
Omnicom Group, Inc.
4.250% 01/03/07 330 1,051,050
-----------
MISCELLANEOUS FINANCE -- 1.7%
Ameritrade Holding Corp.
5.750% 08/01/04 500 422,500
Goldman Sachs Group, Inc.
2.000% 07/01/06 500 478,905
-----------
901,405
-----------
OIL & GAS -- 0.9%
Devon Energy Corp.
4.900% 08/15/08 500 486,875
-----------
POLLUTION CONTROL -- 0.8%
Waste Management, Inc.
4.000% 02/01/02 500 440,000
-----------
RETAIL -- 2.0%
Costco Cos., Inc.
0.000% 08/19/17 1,000 1,065,000
-----------
TELEPHONES -- 6.2%
Clear Channel Communications, Inc.
2.625% 04/01/03 500 741,875
Level 3 Communications, Inc.
6.000% 09/15/09 300 421,500
Tel-Save Holdings, Inc.
5.000% 12/15/04 500 423,125
U.S. Cellular Corp.
0.000% 06/13/15 1,000 963,750
UBS A.G. - Stamford Branch
1.500% 07/12/06 750 708,285
-----------
3,258,535
-----------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $17,657,350) 22,106,933
-----------
SHARES VALUE(DAGGER)
-------- ------------
RIGHTS & WARRANTS -- 0.0%
Hybridon, Inc. Class A 17,206 $ 516
Intermedia Communications, Inc.,
Series 144A* 811 0
-----------
TOTAL RIGHTS & WARRANTS
(Cost $0) 516
-----------
TEMPORARY INVESTMENTS -- 2.6%
Dreyfus Cash Management Plus #719 405,944 405,944
Goldman Sachs Financial Square
Money Market Portfolio 473,092 473,092
J.P. Morgan Institutional Prime
Money Market Portfolio 484,339 484,339
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $1,363,375) 1,363,375
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $40,152,077) $52,459,083
===========
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
PEPS -- Preferred Equity Participation Stock.
PERQS -- Performance Equity-Linked Redemption Quarterly-pay Securities.
STRYPES -- Structured Yield Product Exchangeable for Stock.
See Notes to Financial Statements.
52
<PAGE>
HARRIS INSIGHT FUNDS
CONVERTIBLE SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $40,152,077) .................... $52,459,083
Collateral for securities loaned ........................... 4,552,079
Dividends receivable ....................................... 91,972
Interest receivable ........................................ 161,857
Other assets ............................................... 20,783
-----------
Total assets ........................................ 57,285,774
-----------
LIABILITIES
Payable upon return of securities loaned ................... 4,552,079
Payable for capital stock redeemed ......................... 222,556
Accrued expenses ........................................... 35,974
-----------
Total liabilities ................................... 4,810,609
-----------
NET ASSETS
Applicable to 1,705,569 Institutional Shares and 12,267
N Shares of beneficial interest outstanding,
$.001 par value (Note 7) ................................... $52,475,165
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($52,100,504/1,705,569) .................................... $30.55
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($374,661/12,267) .......................................... $30.54
======
See Notes to Financial Statements.
53
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ ------------
COMMON STOCK -- 97.9%
AEROSPACE -- 3.8%
B.F. Goodrich Co. 153,700 $ 4,226,750
Litton Industries, Inc.* 305,675 15,245,541
United Technologies Corp. 51,100 3,321,500
------------
22,793,791
------------
AIR TRANSPORT -- 1.6%
Delta Air Lines, Inc. 92,000 4,582,750
UAL Corp.* 67,000 5,196,687
------------
9,779,437
------------
ALCOHOLIC BEVERAGES & TOBACCO-- 0.9%
Anheuser-Busch Cos., Inc. 72,300 5,124,262
------------
APPAREL, TEXTILES -- 2.5%
Jones Apparel Group, Inc.* 216,400 5,869,850
Liz Claiborne, Inc. 133,100 5,007,887
Shaw Industries, Inc. 285,300 4,404,319
------------
15,282,056
------------
AUTOS -- 3.8%
Ford Motor Co. 233,200 12,461,625
General Motors Corp. 142,300 10,343,431
------------
22,805,056
------------
BANKS -- 7.6%
Chase Manhattan Corp. 221,560 17,212,442
Citigroup, Inc. 145,500 8,084,344
Southtrust Corp. 216,850 8,186,087
Wells Fargo Co. 296,100 11,973,544
------------
45,456,417
------------
BUSINESS SERVICES -- 6.1%
Electronic Data Systems Corp. 155,100 10,382,006
Oracle Corp.* 83,600 9,363,200
Reynolds & Reynolds Co. Class A 372,200 8,374,500
Viad Corp. 315,400 8,791,775
------------
36,911,481
------------
CASINOS -- 1.5%
Mandalay Resort Group* 460,300 9,263,537
------------
CHEMICALS -- 0.4%
W.R. Grace & Co.* 161,900 2,246,362
------------
CONSTRUCTION -- 1.3%
Centex Corp. 127,400 3,145,187
Sherwin Williams Co. 226,900 4,764,900
------------
7,910,087
------------
DRUGS -- 4.2%
Amgen, Inc.* 99,500 5,970,000
Bristol-Myers Squibb Co. 24,700 1,585,431
Genzyme Corp.* 142,700 6,403,662
Merck & Co., Inc. 168,300 11,286,619
------------
25,245,712
------------
SHARES VALUE(DAGGER)
------ ------------
COMMON STOCK (CONTINUED)
ELECTRIC & GAS -- 3.4%
Columbia Energy Group 131,900 $ 8,342,675
Energy East Corp. 446,200 9,286,537
Reliant Energy, Inc. 129,000 2,950,875
------------
20,580,087
------------
ELECTRONICS -- 3.3%
Intel Corp. 174,600 14,360,850
Tellabs, Inc.* 83,600 5,360,850
------------
19,721,700
------------
FOOD & BEVERAGES -- 2.7%
Dean Foods Co. 175,300 6,968,175
IBP, Inc. 102,600 1,846,800
Smithfield Foods, Inc.* 314,200 7,540,800
------------
16,355,775
------------
FOREST PRODUCTS & PAPER -- 4.0%
Boise Cascade Corp. 71,400 2,891,700
Champion International Corp. 118,200 7,321,012
Georgia Pacific Corp. 131,300 6,663,475
Weyerhaeuser Co. 99,800 7,166,887
------------
24,043,074
------------
HEALTH CARE SERVICES -- 1.9%
Cigna Corp. 43,250 3,484,328
Wellpoint Health Networks, Inc.* 117,300 7,734,469
------------
11,218,797
------------
HOTELS & RESTAURANTS -- 3.3%
Brinker International, Inc.* 115,700 2,776,800
Darden Restaurants, Inc. 536,225 9,719,078
Outback Steakhouse, Inc.* 276,500 7,171,719
------------
19,667,597
------------
INSURANCE -- 2.2%
AXA Financial, Inc. 381,100 12,909,763
------------
MACHINERY & EQUIPMENT -- 1.6%
Applied Materials, Inc.* 75,200 9,522,200
------------
METALS -- 1.6%
Alcoa, Inc. 114,000 9,462,000
------------
MISCELLANEOUS FINANCE -- 6.0%
Lehman Brothers Holdings, Inc. 173,500 14,693,281
Morgan Stanley Dean Witter & Co. 92,400 13,190,100
PaineWebber Group, Inc. 214,200 8,313,638
------------
36,197,019
------------
See Notes to Financial Statements.
54
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ ------------
COMMON STOCK (CONTINUED)
OFFICE EQUIPMENT -- 8.2%
3Com Corp.* 57,100 $ 2,680,131
Apple Computer, Inc.* 46,000 4,726,500
Compaq Computer Corp. 113,700 3,077,006
Dell Computer, Inc.* 63,700 3,244,719
Hewlett Packard Co. 22,600 2,574,988
International Business Machines Corp. 191,200 20,649,600
Lexmark International Group, Inc. Class A* 132,800 12,018,400
Quantum Corp.-Hard Disk Drive* 87,200 604,950
------------
49,576,294
------------
OIL & GAS -- 6.6%
Coastal Corp. 495,700 17,566,369
Phillips Petroleum Co. 150,900 7,092,300
Texaco, Inc. 76,600 4,160,338
USX-Marathon Group, Inc. 441,400 10,897,063
------------
39,716,070
------------
RAILROADS -- 0.5%
Canadian Pacific, Ltd. 128,300 2,766,469
------------
RETAIL -- 6.4%
BJ's Wholesale Club, Inc.* 410,400 14,979,600
Dayton Hudson Corp. 57,700 4,237,344
Federated Department Stores, Inc.* 115,600 5,845,025
Intimate Brands, Inc. Class A 204,800 8,832,000
Ross Stores, Inc. 238,600 4,279,888
------------
38,173,857
------------
TELEPHONES -- 11.8%
ADC Telecommunications, Inc.* 225,600 16,356,000
AT&T Corp. 242,800 12,322,100
Bell Atlantic Corp. 155,000 9,542,188
GTE Corp. 152,200 10,739,613
Sprint Corp. (FON Group) 129,900 8,743,894
Telefonos de Mexico S.A. ADR 119,875 13,485,938
------------
71,189,733
------------
TRUCKING -- 0.7%
CNF Transportation, Inc. 129,100 4,453,950
------------
TOTAL COMMON STOCK
(Cost $495,815,702) 588,372,583
------------
SHARES VALUE(DAGGER)
------ ------------
TEMPORARY INVESTMENTS -- 2.1%
Dreyfus Cash Management Plus #719 3,037,033 $ 3,037,033
Goldman Sachs Financial Square
Money Market Portfolio 4,885,694 4,885,694
J.P. Morgan Institutional Prime
Money Market Portfolio 4,887,755 4,887,755
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $12,810,482) 12,810,482
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $508,626,184) $601,183,065
============
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
55
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at value (Cost $508,626,184) ........................... $601,183,065
Collateral for securities loaned ................................... 81,424,648
Dividends receivable ............................................... 488,252
Interest receivable ................................................ 41,741
Receivable for capital stock sold .................................. 13,260
Other assets ....................................................... 19,509
------------
Total assets ................................................ 683,170,475
------------
LIABILITIES
Payable upon return of securities loaned ........................... 81,424,648
Payable for capital stock redeemed ................................. 1,639,169
Accrued expenses ................................................... 506,411
------------
Total liabilities ........................................... 83,570,228
------------
NET ASSETS
Applicable to 39,631,023 Institutional Shares, 1,345,650 N Shares and
11,044 A Shares outstanding, $.001 par value; 300,000,000 authorized
shares (Note 7) .................................................... $599,600,247
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL SHARE
($579,753,596/39,631,023) .......................................... $14.63
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($19,685,095/1,345,650) ............................................ $14.63
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($161,556/11,044) .................................................. $14.63
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($14.63/0.945) (Note 5) ............................................ $15.48
======
</TABLE>
See Notes to Financial Statements.
56
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ ------------
COMMON STOCK -- 95.5%
AEROSPACE -- 4.0%
B.F. Goodrich Co. 20,200 $ 555,500
Honeywell International, Inc. 4,312 248,749
Northrop Grumman Holdings Corp. 12,600 681,187
Rockwell International Corp. 18,800 900,050
United Technologies Corp. 16,400 1,066,000
-----------
3,451,486
-----------
AIR TRANSPORT -- 2.6%
AMR Corp.* 17,900 1,199,300
Delta Air Lines, Inc. 6,400 318,800
UAL Corp.* 8,500 659,281
-----------
2,177,381
-----------
ALCOHOLIC BEVERAGES & TOBACCO-- 1.0%
Anheuser-Busch Cos., Inc. 11,700 829,237
-----------
AUTOS -- 2.5%
Ford Motor Co. 34,000 1,816,875
General Motors Corp. 4,000 290,750
-----------
2,107,625
----------
BANKS -- 7.6%
Bank One Corp. 17,267 553,623
Chase Manhattan Corp. 30,200 2,346,162
Citigroup, Inc. 18,500 1,027,906
FleetBoston Financial Corp. 32,400 1,127,925
Keycorp 20,200 446,925
Mellon Financial Corp. 29,800 1,015,062
-----------
6,517,603
-----------
BUSINESS SERVICES -- 1.3%
Oracle Corp.* 10,000 1,120,000
-----------
CHEMICALS -- 2.4%
Dow Chemical Co. 3,500 467,687
Minnesota Mining & Manufacturing Co. 15,800 1,546,425
-----------
2,014,112
-----------
CONSTRUCTION -- 2.4%
Armstrong World Industries, Inc. 18,400 614,100
Centex Corp. 24,200 597,437
USG Corp. 18,400 867,100
-----------
2,078,637
-----------
DRUGS -- 5.8%
Amgen, Inc.* 29,400 1,764,000
Bristol-Myers Squibb Co. 38,500 2,471,219
Warner-Lambert Co. 8,300 680,081
-----------
4,915,300
-----------
ELECTRIC & GAS -- 4.7%
DTE Energy Co. 12,400 389,050
Edison International 33,500 877,281
Energy East Corp. 18,000 374,625
Entergy Corp. 18,100 466,075
GPU, Inc. 10,400 311,350
SHARES VALUE(DAGGER)
------ ------------
COMMON STOCK (CONTINUED)
ELECTRIC & GAS (CONTINUED)
New Century Energies, Inc. 7,900 $ 239,962
PECO Energy Co. 12,100 420,475
Texas Utilities Co. 15,000 533,437
Unicom Corp. 11,900 398,650
-----------
4,010,905
-----------
ELECTRICAL -- 1.2%
Cooper Industries, Inc. 17,000 687,437
General Electric Co. 2,400 371,400
-----------
1,058,837
-----------
ELECTRONICS -- 3.1%
Arrow Electronics, Inc.* 38,000 964,250
Intel Corp. 4,100 337,225
Lucent Technologies, Inc. 18,400 1,376,550
-----------
2,678,025
-----------
FOREST PRODUCTS & PAPER -- 3.3%
Georgia Pacific Corp. 30,600 1,552,950
Georgia Pacific Corp. (Timber Group)* 16,500 406,312
Weyerhaeuser Co. 11,800 847,388
-----------
2,806,650
-----------
HEALTH CARE SERVICES -- 3.5%
Cigna Corp. 26,300 2,118,794
Medtronic, Inc. 24,264 884,120
-----------
3,002,914
-----------
INSURANCE -- 2.0%
Conseco, Inc. 21,500 384,313
Lincoln National Corp. 7,000 280,000
Providian Financial Corp. 11,850 1,079,091
-----------
1,743,404
-----------
MACHINERY & EQUIPMENT -- 0.9%
Deere & Co. 8,200 355,675
Tyco International, Ltd. 10,800 419,850
-----------
775,525
-----------
METALS -- 2.6%
Alcoa, Inc. 7,100 589,300
Phelps Dodge Corp. 6,100 409,463
USX-U.S. Steel Group, Inc. 37,100 1,224,300
-----------
2,223,063
-----------
MISCELLANEOUS FINANCE -- 3.4%
Capital One Financial Corp. 22,200 1,069,763
Lehman Brothers Holdings, Inc. 7,100 601,281
Merrill Lynch & Co., Inc. 8,200 684,700
SLM Holding Corp. 13,000 549,250
-----------
2,904,994
-----------
See Notes to Financial Statements.
57
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ ------------
COMMON STOCK (CONTINUED)
OFFICE EQUIPMENT -- 16.4%
Adobe Systems, Inc. 7,800 $ 524,550
Cisco Systems, Inc.* 10,700 1,145,569
Compaq Computer Corp. 12,400 335,575
Computer Associates International, Inc. 12,500 874,219
Dell Computer, Inc.* 34,600 1,762,438
EMC Corp.* 10,000 1,092,500
International Business Machines Corp. 12,600 1,360,800
Lexmark International Group, Inc.
Class A* 22,000 1,991,000
Microsoft Corp.* 25,000 2,917,188
Sun Microsystems, Inc.* 25,600 1,980,800
-----------
13,984,639
-----------
OIL & GAS -- 7.5%
Atlantic Richfield Co. 7,600 657,400
Exxon Mobil Corp. 29,900 2,408,819
Kerr-McGee Corp. 12,800 793,600
Phillips Petroleum Co. 18,000 846,000
Royal Dutch Petroleum Co. 28,700 1,734,556
-----------
6,440,375
-----------
RETAIL -- 7.7%
American Eagle Outfitters, Inc.* 11,600 522,000
BJ's Wholesale Club, Inc.* 21,900 799,350
Circuit City Stores, Inc. 12,000 540,750
Dayton Hudson Corp. 26,900 1,975,469
Gap, Inc. 26,025 1,197,150
Lowe's Cos., Inc. 14,300 854,425
Tandy Corp. 5,500 270,531
Tiffany & Co., Inc. 4,700 419,475
-----------
6,579,150
-----------
TELEPHONES -- 8.8%
AT&T Corp. 34,800 1,766,100
Bell Atlantic Corp. 29,596 1,822,004
British Telecommunications P.L.C. ADR 3,500 833,000
GTE Corp. 11,600 818,525
SBC Communications, Inc. 16,318 795,503
US West, Inc. 20,800 1,497,600
-----------
7,532,732
-----------
THRIFT INSTITUTIONS -- 0.8%
Washington Mutual, Inc. 26,250 682,500
-----------
TOTAL COMMON STOCK
(Cost $55,378,544) 81,635,094
-----------
SHARES VALUE(DAGGER)
------ ------------
TEMPORARY INVESTMENTS -- 4.5%
Dreyfus Cash Management Plus #719 987,822 $ 987,822
Goldman Sachs Financial Square
Money Market Portfolio 1,449,377 1,449,377
J.P. Morgan Institutional Prime
Money Market Portfolio 1,392,623 1,392,623
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,829,822) 3,829,822
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $59,208,366) $85,464,916
===========
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
58
<PAGE>
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at value (Cost $59,208,366) ..................................... $85,464,916
Collateral for securities loaned ............................................ 18,714,200
Dividends receivable ........................................................ 70,573
Interest receivable ......................................................... 24,113
Receivable for capital stock sold ........................................... 2,549
Other assets ................................................................ 17,490
-----------
Total assets ......................................................... 104,293,841
-----------
LIABILITIES
Payable upon return of securities loaned .................................... 18,714,200
Payable for capital stock redeemed .......................................... 506,265
Accrued expenses ............................................................ 61,335
-----------
Total liabilities .................................................... 19,281,800
-----------
NET ASSETS
Applicable to 3,894,704 Institutional Shares, 250,866 N Shares and 21,420 A Shares
of beneficial interest outstanding, $.001 par value (Note 7) ................ $85,012,041
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL SHARE
($79,457,592/3,894,704) ..................................................... $20.40
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($5,117,515/250,866) ........................................................ $20.40
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($436,934/21,420) ........................................................... $20.40
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($20.40/0.945) (Note 5) ..................................................... $21.59
======
</TABLE>
See Notes to Financial Statements.
59
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ ------------
COMMON STOCK -- 97.9%
AEROSPACE -- 2.8%
Honeywell International, Inc. 13,000 $ 749,938
Textron, Inc. 17,200 1,319,025
United Technologies Corp. 51,520 3,348,800
-----------
5,417,763
-----------
AIR TRANSPORT -- 0.6%
Southwest Airlines Co. 64,825 1,049,355
-----------
ALCOHOLIC BEVERAGES & TOBACCO-- 1.1%
Anheuser-Busch Cos., Inc. 29,400 2,083,725
-----------
APPAREL, TEXTILES -- 1.1%
Jones Apparel Group, Inc.* 75,200 2,039,800
-----------
BANKS -- 2.7%
Chase Manhattan Corp. 20,100 1,561,519
Citigroup, Inc. 39,598 2,200,164
Southtrust Corp. 37,200 1,404,300
-----------
5,165,983
-----------
BUSINESS SERVICES -- 5.7%
Adaptec, Inc.* 44,000 2,191,750
Computer Sciences Corp.* 19,300 1,826,262
Oracle Corp.* 50,500 5,656,000
Sterling Software, Inc.* 36,500 1,149,750
-----------
10,823,762
-----------
COSMETICS & SOAP -- 1.5%
Colgate-Palmolive Co. 28,000 1,820,000
Procter & Gamble Co. 10,300 1,128,494
-----------
2,948,494
-----------
DRUGS -- 10.0%
Abbott Laboratories, Inc. 37,464 1,360,411
American Home Products Corp. 20,300 800,581
Amgen, Inc.* 80,300 4,818,000
Bristol-Myers Squibb Co. 53,900 3,459,706
Cardinal Health, Inc. 41,000 1,962,875
Merck & Co., Inc. 12,800 858,400
Pfizer, Inc. 36,800 1,193,700
Schering Plough Corp. 108,800 4,590,000
-----------
19,043,673
-----------
ELECTRICAL -- 2.3%
General Electric Co. 28,500 4,410,375
-----------
ELECTRONICS -- 7.4%
America Online, Inc.* 37,600 2,836,450
Gateway, Inc.* 13,000 936,812
Intel Corp. 62,700 5,157,075
Lucent Technologies, Inc. 69,356 5,188,696
-----------
14,119,033
-----------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
FOOD & BEVERAGES -- 3.6%
Dean Foods Co. 45,200 $ 1,796,700
Quaker Oats Co. 48,400 3,176,250
Sara Lee Corp. 80,900 1,784,856
-----------
6,757,806
-----------
FOREST PRODUCTS & PAPER -- 0.9%
Weyerhaeuser Co. 25,100 1,802,494
-----------
HEALTH CARE SERVICES -- 1.3%
Biogen, Inc.* 29,800 2,516,237
-----------
HOTELS & RESTAURANTS -- 0.7%
Tricon Global Restaurants, Inc.* 33,400 1,290,075
-----------
HOUSEHOLD GOODS -- 0.8%
Maytag Corp. 30,400 1,459,200
-----------
INSURANCE -- 3.0%
AMBAC Financial Group, Inc. 39,200 2,045,750
American International Group, Inc. 17,252 1,865,372
AXA Financial, Inc. 51,000 1,727,625
-----------
5,638,747
-----------
MACHINERY & EQUIPMENT -- 5.8%
Applied Materials, Inc.* 54,900 6,951,712
Tyco International, Ltd. 107,000 4,159,625
-----------
11,111,337
-----------
MISCELLANEOUS FINANCE -- 4.0%
Federal National Mortgage Association 18,300 1,142,606
Lehman Brothers Holdings, Inc. 10,900 923,094
Morgan Stanley Dean Witter & Co. 38,600 5,510,150
-----------
7,575,850
-----------
OFFICE EQUIPMENT -- 21.0%
Adobe Systems, Inc. 22,900 1,540,025
BMC Software, Inc.* 34,100 2,723,738
Cisco Systems, Inc.* 56,100 6,006,206
Compaq Computer Corp. 59,500 1,610,219
Computer Associates International, Inc. 25,100 1,755,431
Dell Computer, Inc.* 34,500 1,757,344
Hewlett Packard Co. 25,100 2,859,831
International Business Machines Corp. 26,000 2,808,000
Lexmark International Group, Inc. Class A* 47,500 4,298,750
Microsoft Corp.* 76,000 8,868,250
Sun Microsystems, Inc.* 72,800 5,632,900
-----------
39,860,694
-----------
OIL & GAS -- 5.2%
Apache Corp. 27,350 1,010,241
Coastal Corp. 97,800 3,465,788
Kerr-McGee Corp. 23,700 1,469,400
Phillips Petroleum Co. 54,400 2,556,800
Ultramar Diamond Shamrock Corp. 60,650 1,375,997
-----------
9,878,226
-----------
See Notes to Financial Statements.
60
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
RETAIL -- 5.2%
Dayton Hudson Corp. 43,700 $ 3,209,219
Federated Department Stores, Inc.* 69,500 3,514,094
Gap, Inc. 31,900 1,467,400
TJX Cos., Inc. 85,900 1,755,581
------------
9,946,294
------------
RETAIL - FOOD -- 1.5%
Safeway, Inc.* 81,950 2,914,347
------------
TELEPHONES -- 8.7%
Alltel Corp. 26,700 2,207,756
AT&T Corp. 98,200 4,983,650
Broadwing, Inc. 44,700 1,648,313
GTE Corp. 25,250 1,781,703
SBC Communications, Inc. 120,058 5,852,828
------------
16,474,250
------------
THRIFT INSTITUTIONS -- 0.4%
Washington Mutual, Inc. 26,700 694,200
------------
TRUCKING -- 0.6%
Ryder System, Inc. 48,100 1,175,444
------------
TOTAL COMMON STOCK
(Cost $106,636,981) 186,197,164
------------
TEMPORARY INVESTMENTS -- 2.1%
Dreyfus Cash Management Plus #719 893,576 893,576
Goldman Sachs Financial Square
Money Market Portfolio 1,502,277 1,502,277
J.P. Morgan Institutional Prime
Money Market Portfolio 1,501,622 1,501,622
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,897,475) 3,897,475
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $110,534,456) $190,094,639
============
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
61
<PAGE>
HARRIS INSIGHT FUNDS
GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at value (Cost $110,534,456) ...................................... $190,094,639
Collateral for securities loaned .............................................. 40,078,032
Dividends receivable .......................................................... 131,611
Interest receivable ........................................................... 18,878
Receivable for capital stock sold ............................................. 698,274
Other assets .................................................................. 17,883
------------
Total assets ........................................................... 231,039,317
------------
LIABILITIES
Payable upon return of securities loaned ...................................... 40,078,032
Payable for capital stock redeemed ............................................ 3,103
Accrued expenses .............................................................. 165,108
------------
Total liabilities ...................................................... 40,246,243
------------
NET ASSETS
Applicable to 6,256,376 Institutional Shares, 269,210 N Shares and 24,506 A Shares
of beneficial interest outstanding, $.001 par value (Note 7) .................. $190,793,074
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL SHARE
($182,283,174/6,256,376) ...................................................... $29.14
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($7,800,246/269,210) .......................................................... $28.97
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($709,654/24,506) ............................................................. $28.96
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($28.96/0.945) (Note 5) ....................................................... $30.65
======
</TABLE>
See Notes to Financial Statements.
62
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 97.1%
AEROSPACE -- 1.2%
Cordant Technologies, Inc. 81,900 $ 2,702,700
Midwest Express Holdings, Inc.* 72,600 2,314,125
-----------
5,016,825
-----------
AIR TRANSPORT -- 2.4%
Eagle USA Airfreight, Inc.* 169,900 7,337,556
Expeditors International of Washington,
Inc. 71,600 3,105,650
-----------
10,443,206
-----------
APPAREL, TEXTILES -- 1.9%
Fossil, Inc.* 64,675 1,495,609
Quiksilver, Inc.* 155,150 2,404,825
Spiegel, Inc. Class A 99,000 693,000
Timberland Co. Class A* 67,000 3,542,625
-----------
8,136,059
-----------
AUTO RELATED -- 0.5%
Dollar Thrifty Automotive Group, Inc.* 38,600 923,987
Winnebago Industries, Inc. 65,500 1,314,094
-----------
2,238,081
-----------
AUTOS -- 0.6%
Monaco Coach Corp.* 46,050 1,177,153
Navistar International Corp.* 33,600 1,591,800
-----------
2,768,953
-----------
BANKS -- 4.7%
Centura Banks, Inc. 20,500 904,563
Commerce Bancshares, Inc. 80,245 2,753,406
Compass Bancshares, Inc. 38,400 856,800
Doral Financial Corp. 194,900 2,387,525
North Fork Bancorp, Inc. 92,100 1,611,750
Old Kent Financial Corp. 31,887 1,128,003
Provident Bankshares Corp. 56,490 977,983
Silicon Valley Bancshares 167,700 8,280,187
Westamerica Bancorp 34,100 952,669
Zions Bancorp 15,400 908,600
-----------
20,761,486
-----------
BUSINESS SERVICES -- 6.1%
AHL Services, Inc.* 51,200 1,068,800
Amcol International Corp. 50,000 806,250
C.H. Robinson Worldwide, Inc. 41,000 1,629,750
DoubleClick, Inc.* 23,100 5,845,744
Factset Research Systems, Inc. 40,050 3,188,981
G. & K. Services, Inc. Class A 29,300 939,431
Mastech Corp.* 41,000 1,014,750
Metamor Worldwide, Inc.* 74,700 2,175,637
National Computer Systems, Inc. 226,600 8,497,500
On Assignment, Inc.* 25,600 758,400
Shared Medical Systems Corp. 18,400 937,250
-----------
26,862,493
-----------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
CASINOS -- 1.0%
Argosy Gaming Co. 182,300 $ 2,837,044
Station Casinos, Inc.* 74,900 1,680,569
-----------
4,517,613
-----------
CHEMICALS -- 1.1%
MacDermid, Inc. 22,500 923,906
Spartech Corp. 69,600 2,244,600
Valspar Corp. 35,800 1,499,125
-----------
4,667,631
-----------
CONSTRUCTION -- 4.1%
Centex Construction Products, Inc. 28,200 1,099,800
D.R. Horton, Inc. 89,600 1,237,600
Dycom Industries, Inc.* 151,750 6,686,484
Elcor Corp. 97,950 2,950,744
Florida Rock Industries, Inc. 25,600 881,600
Insituform Technologies, Inc. Class A* 73,000 2,044,000
LNR Property Corp. Class B 50,000 993,750
Toll Brothers, Inc.* 106,000 1,974,250
-----------
17,868,228
-----------
DRUGS -- 5.5%
IDEC Pharmaceuticals Corp.* 19,800 1,941,638
Jones Pharma, Inc. 280,300 12,158,012
King Pharmaceuticals, Inc. 85,650 4,791,047
Medco Research, Inc.* 29,000 871,812
Roper Industries, Inc. 27,500 1,039,844
Shire Pharmaceuticals Group P.L.C. ADR* 108,125 3,122,109
-----------
23,924,462
-----------
ELECTRIC & GAS -- 1.6%
Calpine Corp.* 93,000 5,952,000
Piedmont Natural Gas Co., Inc. 30,700 928,675
-----------
6,880,675
-----------
ELECTRICAL -- 1.1%
Commscope, Inc. 113,400 4,571,437
-----------
ELECTRONICS -- 21.9%
Amkor Technology, Inc. 166,500 4,682,813
Amphenol Corp. Class A* 75,200 5,005,500
Apex, Inc.* 55,300 1,783,425
C&D Technologies, Inc. 34,000 1,445,000
Cognex Corp.* 35,800 1,393,963
CTS Corp. 71,200 5,366,700
Dionex Corp.* 44,000 1,809,500
DSP Group, Inc. 44,600 4,142,225
Hadco Corp.* 100,600 5,130,600
Interdigital Communications Corp.* 152,150 11,411,250
Jabil Circuit, Inc.* 30,500 2,226,500
Latitude Communications, Inc.* 74,700 1,946,869
Mercury Interactive Corp.* 38,200 4,123,212
Micrel, Inc.* 143,400 8,164,837
Molecular Devices Corp.* 32,600 1,687,050
Plantronics, Inc.* 19,500 1,395,469
See Notes to Financial Statements.
63
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
ELECTRONICS (CONTINUED)
QRS Corp.* 58,050 $ 6,095,250
Radiant Systems, Inc.* 73,875 2,968,852
RF Micro Devices, Inc.* 127,600 8,708,700
Sawtek, Inc.* 52,000 3,461,250
Semtech Corp.* 52,900 2,750,800
Vitesse Semiconductors Corp.* 198,400 10,391,200
-----------
96,090,965
-----------
FOOD & BEVERAGES -- 0.3%
Earthgrains Co. 92,400 1,489,950
-----------
FOREST PRODUCTS & PAPER -- 0.2%
Buckeye Technologies, Inc.* 51,200 761,600
-----------
HEALTH CARE SERVICES -- 6.1%
Accredo Health, Inc. 49,400 1,519,050
Datascope Corp.* 36,800 1,444,400
Dendrite International, Inc.* 258,600 8,695,425
Hooper Holmes, Inc. 82,000 2,111,500
Mid Atlantic Medical Services, Inc.* 155,300 1,290,931
Minimed, Inc.* 72,000 5,274,000
Patterson Dental Co.* 40,500 1,721,250
Techne Corp. 49,000 2,695,000
Universal Health Services, Inc. Class B* 61,400 2,210,400
-----------
26,961,956
-----------
HOTELS & RESTAURANTS -- 2.0%
Brinker International, Inc.* 86,400 2,073,600
Jack in the Box, Inc. 133,900 2,770,056
Ruby Tuesday, Inc. 115,000 2,091,563
Sonic Corp.* 64,400 1,795,150
-----------
8,730,369
-----------
HOUSEHOLD GOODS -- 1.3%
Blyth Industries, Inc.* 23,000 564,938
Ethan Allen Interiors, Inc. 61,500 1,971,844
La-Z-Boy, Inc. 85,000 1,429,062
LADD Furniture, Inc.* 51,200 1,011,200
Polymer Group, Inc. 48,000 876,000
-----------
5,853,044
-----------
INSURANCE -- 0.7%
Hartford Life, Inc. Class A 51,200 2,252,800
Medical Assurance, Inc.* 28,160 596,640
-----------
2,849,440
-----------
LEISURE -- 0.7%
Topps Co., Inc.* 250,000 2,578,125
Trendwest Resorts, Inc.* 30,000 671,250
-----------
3,249,375
-----------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
MACHINERY & EQUIPMENT -- 1.6%
Graco, Inc. 20,500 $ 735,437
IDEX Corp. 31,100 944,662
JLG Industries, Inc. 203,600 3,232,150
Terex Corp.* 76,000 2,109,000
-----------
7,021,249
-----------
MEDIA -- 0.6%
Central Newspapers, Inc. Class A 44,700 1,760,063
Wiley (John) & Sons, Inc. Class A 57,200 958,100
-----------
2,718,163
-----------
METALS -- 0.6%
Reliance Steel & Aluminum Corp. 119,000 2,789,063
-----------
MISCELLANEOUS FINANCE -- 1.1%
Americredit Corp.* 137,200 2,538,200
Eaton Vance Corp. 42,000 1,596,000
Metris Cos., Inc. 22,884 816,673
-----------
4,950,873
-----------
OFFICE EQUIPMENT -- 14.1%
Actuate Corp.* 90,975 3,894,867
Bea Systems, Inc.* 184,600 12,922,000
Brady Corp. Class A 37,300 1,265,869
BroadVision, Inc.* 106,300 18,077,644
Comdisco, Inc. 115,200 4,291,200
Comverse Technology, Inc.* 30,750 4,449,141
Network Appliance, Inc.* 127,600 10,590,800
Safeguard Scientific, Inc.* 20,500 3,322,281
TenFold Corp.* 76,100 2,977,412
-----------
61,791,214
-----------
PHOTOGRAPHIC -- 0.5%
Zomax, Inc. 46,000 2,078,625
-----------
POLLUTION CONTROL -- 0.8%
Donaldson, Inc. 91,900 2,211,344
URS Corp.* 58,900 1,277,394
-----------
3,488,738
-----------
RETAIL -- 9.4%
AnnTaylor Stores Corp.* 38,400 1,322,400
Copart, Inc.* 128,800 5,554,500
Cost Plus, Inc.* 78,750 2,795,625
Dollar Tree Stores, Inc.* 49,000 2,370,375
Insight Enterprises, Inc.* 80,000 3,230,000
JAKKS Pacific, Inc. 128,850 2,399,831
Linens `N Things, Inc.* 32,400 959,850
LSI Industries, Inc. 54,600 1,163,662
Men's Wearhouse, Inc.* 102,400 3,008,000
Pacific Sunwear of California, Inc.* 89,650 2,851,991
Regis Corp. 139,550 2,616,562
Tiffany & Co., Inc. 116,600 10,406,550
Whitehall Jewellers, Inc.* 75,600 2,764,125
-----------
41,443,471
-----------
See Notes to Financial Statements.
64
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
RETAIL - FOOD -- 0.5%
RARE Hospitality International, Inc.* 102,000 $ 2,205,750
------------
TELEPHONES -- 1.8%
ADC Telecommunications, Inc.* 106,100 7,692,250
------------
THRIFT INSTITUTIONS -- 0.9%
Anchor Bancorp Wisconsin, Inc. 51,200 771,200
Andover Bancorp, Inc. 46,100 1,270,631
Charter One Financial, Inc. 79,748 1,525,181
MAF Bancorp, Inc. 23,000 481,563
------------
4,048,575
------------
TRUCKING -- 0.2%
Swift Transportation Co., Inc. 60,100 1,059,263
------------
TOTAL COMMON STOCK
(Cost $263,207,770) 425,931,082
------------
TEMPORARY INVESTMENTS -- 2.9%
Dreyfus Cash Management Plus #719 4,112,358 4,112,358
Goldman Sachs Financial Square
Money Market Portfolio 4,693,613 4,693,613
J.P. Morgan Institutional Prime
Money Market Portfolio 4,114,224 4,114,224
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $12,920,195) 12,920,195
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $276,127,965) $438,851,277
============
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-incoming producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
65
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at value (Cost $276,127,965) ...................................... $438,851,277
Collateral for securities loaned .............................................. 49,964,419
Dividends receivable .......................................................... 88,478
Interest receivable ........................................................... 68,196
Receivable for capital stock sold ............................................. 343,097
Other assets .................................................................. 19,241
------------
Total assets ........................................................... 489,334,708
------------
LIABILITIES
Payable upon return of securities loaned ...................................... 49,964,419
Payable for capital stock redeemed ............................................ 455,525
Accrued expenses .............................................................. 418,276
------------
Total liabilities ...................................................... 50,838,220
------------
NET ASSETS
Applicable to 17,878,752 Institutional Shares, 266,651 N Shares and 1,169 A Shares
of beneficial interest outstanding, $.001 par value (Note 7) .................. $438,496,488
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL SHARE
($432,071,678/17,878,752) ..................................................... $24.17
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($6,396,765/266,651) .......................................................... $23.99
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($28,045/1,169) ............................................................... $23.99
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($23.99/0.945) (Note 5) ....................................................... $25.39
======
</TABLE>
See Notes to Financial Statements.
66
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 98.0%
AEROSPACE -- 4.0%
Cordant Technologies, Inc. 43,300 $1,428,900
Esterline Technologies Corp.* 187,400 2,166,812
Triumph Group, Inc.* 44,200 1,069,087
----------
4,664,799
----------
AIR TRANSPORT -- 1.1%
Alaska Air Group, Inc.* 22,600 793,825
Continental Airlines, Inc. Class B* 9,800 434,875
----------
1,228,700
----------
ALCOHOLIC BEVERAGES & TOBACCO -- 2.0%
Universal Corp. 103,800 2,367,937
----------
APPAREL, TEXTILES -- 2.0%
Oxford Industries, Inc. 57,800 1,145,162
Timberland Co. Class A* 22,200 1,173,825
----------
2,318,987
----------
AUTO RELATED -- 6.8%
Avis Rent A Car, Inc.* 145,820 3,727,524
Dollar Thrifty Automotive Group, Inc.* 152,330 3,646,399
Tower Automotive, Inc.* 32,400 500,175
----------
7,874,098
----------
AUTOS -- 2.0%
Navistar International Corp.* 48,400 2,292,950
----------
BANKS -- 4.0%
Compass Bancshares, Inc. 63,575 1,418,517
Doral Financial Corp. 79,000 967,750
GBC Bancorp 70,500 1,348,313
Independent Bank Corp. 73,700 921,250
----------
4,655,830
----------
BUSINESS SERVICES -- 2.9%
Amdocs, Ltd.* 74,789 2,580,221
Kelly Services, Inc. Class A 30,600 768,825
----------
3,349,046
----------
CASINOS -- 2.5%
Anchor Gaming* 67,000 2,897,750
----------
CHEMICALS -- 2.6%
Cytec Industries, Inc.* 93,600 2,164,500
Schulman (A.), Inc. 55,820 907,075
----------
3,071,575
----------
CONSTRUCTION -- 8.1%
Champion Enterprises, Inc.* 49,200 421,275
Fleetwood Enterprises, Inc. 104,600 2,157,375
LNR Property Corp. 105,600 2,098,800
Webb Corp. 116,800 2,912,700
York International Corp. 69,400 1,904,163
----------
9,494,313
----------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
CONTAINERS -- 0.5%
Libbey, Inc. 21,200 $ 609,500
----------
DRUGS -- 2.4%
Barr Laboratories, Inc.* 5,200 163,150
Medco Research, Inc.* 86,700 2,606,419
----------
2,769,569
----------
ELECTRIC & GAS -- 4.7%
Calpine Corp.* 46,000 2,944,000
Cleco Corp. 26,900 862,481
Public Service Co. of New Mexico 101,900 1,655,875
----------
5,462,356
----------
ELECTRICAL -- 3.8%
General Semiconductor, Inc.* 192,600 2,732,513
Stoneridge, Inc.* 27,500 424,531
Technitrol, Inc. 28,200 1,254,900
----------
4,411,944
----------
ELECTRONICS -- 8.5%
C&D Technologies, Inc. 38,300 1,627,750
Cable Design Technologies, Inc.* 70,560 1,622,880
Diebold, Inc. 198,210 4,657,935
Plexus Corp.* 46,010 2,024,440
----------
9,933,005
----------
ENERGY SERVICES -- 0.7%
Gulf Island Fabrication, Inc.* 49,200 458,175
Seitel, Inc.* 54,800 369,900
----------
828,075
----------
FOOD & BEVERAGES -- 0.6%
Smithfield Foods, Inc.* 29,500 708,000
----------
FOREST PRODUCTS & PAPER -- 0.7%
Buckeye Technologies, Inc.* 51,230 762,046
----------
HEALTH CARE SERVICES -- 7.2%
AmeriPath, Inc.* 53,500 438,031
Cooper Cos., Inc.* 31,650 953,456
Datascope Corp.* 37,100 1,456,175
Hanger Orthopedic Group, Inc.* 32,400 324,000
Lincare Holdings, Inc.* 54,200 1,880,063
Pediatrix Medical Group, Inc.* 33,200 232,400
Rexall Sundown, Inc.* 304,200 3,137,063
----------
8,421,188
----------
HOTELS & RESTAURANTS -- 0.3%
Bob Evans Farms, Inc. 24,600 379,763
----------
INSURANCE -- 7.0%
AmerUs Life Holdings, Inc. Class A 54,000 1,242,000
Gallagher (Arthur J.) & Co. 64,200 4,156,950
Old Republic International Corp. 3,845 52,388
PMI Group, Inc. 56,500 2,757,906
----------
8,209,244
----------
See Notes to Financial Statements.
67
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
MACHINERY & EQUIPMENT -- 5.4%
Gardner Denver Machinery, Inc.* 98,300 $ 1,640,381
Specialty Equipment Cos.* 44,200 1,058,038
SPS Technologies, Inc.* 36,840 1,176,578
Standex International Corp. 116,900 2,447,594
------------
6,322,591
------------
METALS -- 1.5%
Reliance Steel & Aluminum Corp. 76,250 1,787,109
------------
MISCELLANEOUS FINANCE -- 2.0%
Advanta Corp. Class A# 127,300 2,315,269
------------
OFFICE EQUIPMENT -- 2.1%
Tech Data Corp.* 88,500 2,395,031
------------
POLLUTION CONTROL -- 1.0%
Safety-Kleen Corp.* 98,300 1,112,019
------------
RETAIL -- 2.8%
Musicland Stores Corp.* 200,700 1,693,406
Nature's Sunshine Products, Inc. 54,100 432,800
Wet Seal, Inc. Class A* 93,400 1,144,150
------------
3,270,356
------------
TELEPHONES -- 7.7%
Metricom, Inc.* 53,770 4,220,945
Viatel, Inc.* 88,680 4,744,380
------------
8,965,325
------------
THRIFT INSTITUTIONS -- 0.6%
Washington Federal, Inc. 33,400 655,475
------------
TRUCKING -- 0.5%
USFreightways Corp. 11,800 559,025
------------
TOTAL COMMON STOCK
(Cost $110,169,731) 114,092,875
------------
TEMPORARY INVESTMENTS -- 2.0%
Dreyfus Cash Management Plus #719 697,428 697,428
Goldman Sachs Financial Square
Money Market Portfolio 759,532 759,532
J.P. Morgan Institutional Prime
Money Market Portfolio 896,671 896,671
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $2,353,631) 2,353,631
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $112,523,362) $116,446,506
============
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
68
<PAGE>
HARRIS INSIGHT FUNDS
SMALL-CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at value (Cost $112,523,362) .............................. $116,446,506
Collateral for securities loaned ...................................... 7,855,915
Dividends receivable .................................................. 81,275
Interest receivable ................................................... 22,674
Receivable for capital stock sold ..................................... 1,150
Other assets .......................................................... 18,839
------------
Total assets ................................................... 124,426,359
------------
LIABILITIES
Payable upon return of securities loaned .............................. 7,855,915
Payable for capital stock redeemed .................................... 179,793
Accrued expenses ...................................................... 92,105
------------
Total liabilities .............................................. 8,127,813
------------
NET ASSETS
Applicable to 3,815,182 Institutional Shares, 24,532 N Shares and 400.354
A Shares of beneficial interest outstanding, $.001 par value (Note 7) . $116,298,546
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL SHARE
($115,543,544/3,815,182) .............................................. $30.29
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($742,879/24,532) ..................................................... $30.28
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($12,123/400.354) ..................................................... $30.28
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($30.28/0.945) (Note 5) ............................................... $32.04
======
</TABLE>
See Notes to Financial Statements.
69
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK -- 93.0%
AEROSPACE -- 1.3%
Allegheny Technologies Inc. 4,197 $ 94,170
B.F. Goodrich Co. 4,800 132,000
Boeing Co. 41,492 1,724,511
General Dynamics Corp. 8,400 443,100
Honeywell International, Inc. 34,200 1,972,913
Lockheed Martin Corp. 16,842 368,419
Northrop Grumman Holdings Corp. 3,000 162,187
PerkinElmer, Inc. 1,900 79,206
Raytheon Co. Class A 1,842 45,705
Raytheon Co. Class B 12,900 342,656
Rockwell International Corp. 8,200 392,575
Textron, Inc. 6,800 521,475
United Technologies Corp. 21,100 1,371,500
----------
7,650,417
----------
AIR TRANSPORT -- 0.2%
AMR Corp.* 6,800 455,600
Delta Air Lines, Inc. 6,100 303,856
Southwest Airlines Co. 21,637 350,249
U.S. Airways Group, Inc.* 3,600 115,425
----------
1,225,130
----------
ALCOHOLIC BEVERAGES & TOBACCO-- 0.9%
Anheuser-Busch Cos., Inc. 20,200 1,431,675
Brown-Forman Corp. Class B 2,700 154,575
Coors Adolph Co. Class B 1,600 84,000
Fortune Brands, Inc. 7,400 244,662
Philip Morris Cos., Inc. 103,400 2,397,587
Seagram Co., Ltd. 18,800 844,825
UST, Inc. 8,000 201,500
----------
5,358,824
----------
APPAREL, TEXTILES -- 0.2%
Liz Claiborne, Inc. 2,500 94,062
Nike, Inc. Class B 12,100 599,706
Reebok International, Ltd.* 2,200 18,012
Russell Corp. 1,600 26,800
Springs Industries, Inc. Class A 800 31,950
VF Corp. 5,200 156,000
----------
926,530
----------
AUTO-RELATED -- 0.3%
Cooper Tire & Rubber Co. 2,300 35,794
Dana Corp. 7,158 214,293
Delphi Automotive Systems Corp. 24,293 382,615
Eaton Corp. 3,100 225,137
Genuine Parts Co. 7,725 191,677
Goodyear Tire & Rubber Co. 6,700 188,856
T.R.W., Inc. 5,100 264,881
----------
1,503,253
----------
AUTOS -- 0.9%
Ford Motor Co. 52,900 2,826,844
General Motors Corp. 27,900 2,027,981
Navistar International Corp.* 2,700 127,912
----------
4,982,737
----------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
BANKS -- 6.2%
AmSouth Bancorp 16,900 $ 326,381
Bank of America Corp. 74,677 3,747,852
Bank of New York Co., Inc. 31,800 1,272,000
Bank One Corp. 50,705 1,625,729
BB&T Corp. 13,400 366,825
Chase Manhattan Corp. 35,968 2,794,264
Citigroup, Inc. 146,038 8,114,236
Comerica, Inc. 6,750 315,141
Fifth Third Bancorp 13,050 956,728
First Union Corp. 41,326 1,356,009
Firstar Corp. 42,618 900,305
FleetBoston Financial Corp. 40,207 1,399,706
Huntington Bancshares, Inc. 9,911 236,006
J.P. Morgan & Co., Inc. 7,600 962,350
Keycorp 19,912 440,553
MBNA Corp. 35,055 955,249
Mellon Financial Corp. 22,800 776,625
National City Corp. 26,700 632,456
Northern Trust Corp. 9,600 512,400
Old Kent Financial Corp. 5,100 180,413
PNC Bank Corp. 13,100 582,950
Regions Financial Corp. 9,500 238,094
Republic New York Corp. 4,600 331,200
Southtrust Corp. 7,100 268,025
State Street Corp. 7,000 511,437
Summit Bancorp 7,500 229,687
Suntrust Banks, Inc. 14,000 963,375
Synovus Financial Corp. 11,450 227,569
U.S. Bancorp 31,884 759,238
Union Planters Corp. 5,900 232,681
Wachovia Corp. 8,900 605,200
Wells Fargo Co. 71,830 2,904,626
-----------
35,725,310
-----------
BUSINESS SERVICES -- 2.7%
Adaptec, Inc.* 4,400 219,175
Automatic Data Processing, Inc. 26,900 1,449,237
Cendant Corp.* 31,569 838,552
Ceridian Corp.* 6,100 131,531
Computer Sciences Corp.* 6,900 652,912
Deluxe Corp. 3,500 96,031
Dun & Bradstreet Corp. 7,100 209,450
Ecolab, Inc. 5,600 219,100
Electronic Data Systems Corp. 21,500 1,439,156
FDX Corp.* 12,760 522,362
First Data Corp. 19,400 956,662
H & R Block, Inc. 4,200 183,750
Ikon Office Solutions, Inc. 6,300 42,919
Interpublic Group of Cos., Inc. 12,100 698,019
National Service Industries, Inc. 1,700 50,150
Oracle Corp.* 62,880 7,042,560
Paychex, Inc. 10,550 421,341
PeopleSoft, Inc.* 10,000 212,500
Quintiles Transnational Corp.* 4,800 89,700
Service Corp. International 11,700 81,169
Shared Medical Systems Corp. 1,200 61,125
-----------
15,617,401
-----------
See Notes to Financial Statements.
70
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
CASINOS -- 0.0%
Harrah's Entertainment, Inc.* 5,450 $ 144,084
Mirage Resorts, Inc.* 8,500 130,156
-----------
274,240
-----------
CHEMICALS -- 2.0%
Air Products & Chemicals, Inc. 9,900 332,269
Avery Dennison Corp. 5,000 364,375
Corning, Inc. 10,700 1,379,631
Dow Chemical Co. 9,700 1,296,162
E.I. du Pont de Nemours & Co. 45,193 2,977,089
Eastman Chemical Co. 3,400 162,137
F.M.C. Corp.* 1,400 80,237
Great Lakes Chemical Corp. 2,500 95,469
Hercules, Inc. 4,300 119,862
Minnesota Mining & Manufacturing Co. 17,600 1,722,600
Monsanto Co. 27,400 976,125
P.P.G. Industries, Inc. 7,600 475,475
Praxair, Inc. 6,800 342,125
Rohm & Haas Co. 9,254 376,522
Sealed Air Corp.* 2,347 121,604
Sigma Aldrich Corp. 4,300 129,000
Union Carbide Corp. 5,700 380,475
W.R. Grace & Co.* 2,700 37,462
-----------
11,368,619
-----------
CONSTRUCTION -- 0.2%
Armstrong World Industries, Inc. 1,800 60,075
Centex Corp. 2,600 64,187
Fleetwood Enterprises, Inc. 1,200 24,750
Fluor Corp. 3,000 137,625
Foster Wheeler Corp. 1,600 14,200
Kaufman & Broad Home Corp. 2,100 50,794
Masco Corp. 19,300 489,737
Owens Corning, Inc. 2,100 40,556
Pulte Corp. 1,600 36,000
Sherwin Williams Co. 7,400 155,400
Vulcan Materials Co. 4,300 171,731
-----------
1,245,055
-----------
CONTAINERS -- 0.1%
Ball Corp. 900 35,437
Bemis Co., Inc. 2,300 80,212
Crown Cork & Seal Co., Inc. 5,100 114,112
Owens-Illinois, Inc.* 6,700 167,919
-----------
397,680
-----------
COSMETICS & SOAP -- 1.9%
Alberto-Culver Co. Class B 2,300 59,369
Avon Products, Inc. 11,300 372,900
Clorox Co. 10,000 503,750
Colgate-Palmolive Co. 25,200 1,638,000
Gillette Co. 46,900 1,931,694
International Flavors & Fragrances, Inc. 4,600 173,650
Procter & Gamble Co. 57,400 6,288,887
-----------
10,968,250
-----------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
DRUGS -- 7.3%
Abbott Laboratories, Inc. 66,300 $ 2,407,519
Allergan, Inc. 5,800 288,550
Alza Corp.* 4,300 148,887
American Home Products Corp. 56,500 2,228,219
Amgen, Inc.* 44,600 2,676,000
Bristol-Myers Squibb Co. 85,900 5,513,706
Cardinal Health, Inc. 11,850 567,319
Eli Lilly & Co. 47,300 3,145,450
Johnson & Johnson 58,100 5,410,562
Mallinckrodt, Inc. 3,100 98,619
McKesson HBOC, Inc. 11,324 255,498
Merck & Co., Inc. 101,400 6,800,137
Pfizer, Inc. 167,600 5,436,525
Pharmacia & Upjohn, Inc. 22,180 998,100
Schering Plough Corp. 63,500 2,678,906
Warner-Lambert Co. 36,800 3,015,300
Watson Pharmaceuticals, Inc.* 4,100 146,831
-----------
41,816,128
-----------
ELECTRIC & GAS -- 1.6%
AES Corp.* 8,300 620,425
Ameren Corp. 5,900 193,225
American Electric Power Co. 8,400 269,850
Carolina Power & Light Co. 6,600 200,887
Central & South West Corp. 9,300 186,000
Cinergy Corp. 6,836 164,918
Columbia Energy Group 3,650 230,862
Consolidated Edison, Inc. 9,600 331,200
Consolidated Natural Gas Co. 4,200 272,737
Dominion Resources, Inc. 8,550 335,587
DTE Energy Co. 6,300 197,662
Duke Energy Corp. 15,861 795,033
Eastern Enterprises 800 45,950
Edison International 15,400 403,287
Entergy Corp. 10,800 278,100
F.P.L. Group, Inc. 7,900 338,219
FirstEnergy Corp. 10,400 235,950
Florida Progress Corp. 4,100 173,481
GPU, Inc. 5,500 164,656
New Century Energies, Inc. 4,900 148,837
Niagara Mohawk Holdings, Inc.* 8,200 114,287
Nicor, Inc. 2,100 68,250
Northern States Power Co. 6,600 128,700
Oneok, Inc. 1,400 35,175
P.P.& L. Resources, Inc. 6,600 150,975
PECO Energy Co. 8,100 281,475
Peoples Energy Corp. 1,600 53,600
PG & E Corp. 16,700 342,350
Pinnacle West Capital Corp. 3,600 110,025
Public Service Enterprise Group, Inc. 9,800 341,162
Reliant Energy, Inc. 12,393 283,490
Sempra Energy 10,361 180,022
Southern Co. 29,500 693,250
Texas Utilities Co. 11,907 423,443
Unicom Corp. 9,500 318,250
-----------
9,111,320
-----------
See Notes to Financial Statements.
71
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
ELECTRICAL -- 4.5%
Cooper Industries, Inc. 4,100 $ 165,794
Emerson Electric Co. 19,100 1,095,862
General Electric Co. 141,800 21,943,550
General Instrument Corp.* 7,200 612,000
Grainger W.W., Inc. 4,100 196,031
Johnson Controls, Inc. 3,600 204,750
Molex, Inc. 6,640 375,990
Solectron Corp.* 12,700 1,208,087
-----------
25,802,064
-----------
ELECTRONICS -- 7.6%
Advanced Micro Devices, Inc.* 6,200 179,412
America Online, Inc.* 95,600 7,211,825
Analog Devices, Inc.* 7,200 669,600
Andrew Corp.* 3,287 62,042
Gateway, Inc.* 13,600 980,050
Intel Corp. 143,000 11,761,750
KLA Tencor Corp.* 3,800 422,987
LSI Logic Corp.* 6,100 411,750
Lucent Technologies, Inc. 132,519 9,914,078
Micron Technology, Inc.* 10,800 839,700
Motorola, Inc. 26,400 3,887,400
National Semiconductor Corp.* 7,200 308,250
Parametric Technology Corp.* 11,500 310,500
PE Corp.- PE Biosystems Group 4,400 529,375
Scientific Atlanta, Inc. 3,100 172,437
Tektronix, Inc. 1,950 75,806
Tellabs, Inc.* 17,100 1,096,537
Teradyne, Inc.* 7,200 475,200
Texas Instruments, Inc. 34,400 3,332,500
Thomas & Betts Corp. 2,400 76,500
Xilinx, Inc.* 13,600 617,950
-----------
43,335,649
-----------
ENERGY SERVICES -- 0.5%
Baker Hughes, Inc. 14,070 296,349
CMS Energy Corp. 5,100 159,056
Constellation Energy Group 6,400 185,600
Halliburton Co. 19,200 772,800
Helmerich & Payne, Inc. 2,000 43,625
Rowan Cos., Inc.* 3,400 73,737
Schlumberger, Ltd. 23,500 1,321,875
Transocean Sedco Forex Inc. 4,550 153,265
-----------
3,006,307
-----------
FOOD & BEVERAGES -- 2.9%
Archer-Daniels-Midland Co. 26,754 326,064
Bestfoods, Inc. 12,100 636,006
Campbell Soup Co. 18,800 727,325
Coca-Cola Co. 106,800 6,221,100
Coca-Cola Enterprises, Inc. 18,600 374,325
Conagra, Inc. 21,400 482,837
General Mills, Inc. 13,400 479,050
Heinz H.J. Co. 15,500 617,094
Hershey Foods Corp. 6,000 285,000
Kellogg Co. 17,700 545,381
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
FOOD & BEVERAGES (CONTINUED)
Nabisco Group Holdings Corp. 14,000 $ 148,750
Pepsico, Inc. 63,200 2,227,800
Quaker Oats Co. 5,900 387,187
Ralston Purina Group 14,000 390,250
Sara Lee Corp. 39,100 862,644
Unilever N.V 24,739 1,346,729
Wm. Wrigley Jr., Co. 5,000 414,687
-----------
16,472,229
-----------
FOREST PRODUCTS & PAPER -- 0.9%
Boise Cascade Corp. 2,400 97,200
Champion International Corp. 4,100 253,944
Fort James Corp. 9,500 260,062
Georgia Pacific Corp. 7,600 385,700
International Paper Co. 17,968 1,014,069
Kimberly-Clark Corp. 23,728 1,548,252
Louisiana-Pacific Corp. 4,700 66,975
Mead Corp. 4,400 191,125
Potlatch Corp. 1,300 58,012
Temple Inland, Inc. 2,400 158,250
Westvaco Corp. 4,400 143,550
Weyerhaeuser Co. 10,000 718,125
Willamette Industries, Inc. 4,800 222,900
-----------
5,118,164
-----------
HEALTH CARE SERVICES -- 1.3%
Bausch & Lomb, Inc. 2,400 164,250
Baxter International, Inc. 12,500 785,156
Becton, Dickinson & Co. 10,700 286,225
Biomet, Inc. 4,800 191,700
Boston Scientific Corp.* 17,200 376,250
C.R. Bard, Inc. 2,300 121,900
Cigna Corp. 7,900 636,444
Columbia/HCA Healthcare Corp. 24,982 732,285
Guidant Corp. 13,200 620,400
Healthsouth Corp.* 18,200 97,825
Humana, Inc.* 7,300 59,769
IMS Health, Inc. 13,700 372,469
Manor Care, Inc.* 4,750 76,000
Medtronic, Inc. 51,000 1,858,312
Millipore Corp. 1,900 73,387
St. Jude Medical, Inc.* 3,600 110,475
Tenet Healthcare Corp.* 13,300 312,550
United Healthcare Corp. 7,500 398,437
Wellpoint Health Networks, Inc.* 2,900 191,219
-----------
7,465,053
-----------
HOTELS & RESTAURANTS -- 0.6%
Darden Restaurants, Inc. 5,400 97,875
Hilton Hotels Corp. 15,800 152,075
Marriott International, Inc. Class A 10,400 328,250
McDonald's Corp. 59,200 2,386,500
Tricon Global Restaurants, Inc.* 6,530 252,221
Wendy's International, Inc. 5,100 105,188
-----------
3,322,109
-----------
See Notes to Financial Statements.
72
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
HOUSEHOLD GOODS -- 0.2%
Black & Decker Corp. 3,700 $ 193,325
Leggett & Platt, Inc. 8,900 190,794
Maytag Corp. 3,900 187,200
Newell Rubbermaid, Inc. 12,350 358,150
Tupperware Corp. 2,500 42,344
Whirlpool Corp. 3,300 214,706
-----------
1,186,519
-----------
INSURANCE -- 2.8%
Aetna, Inc. 6,363 355,135
AFLAC, Inc. 11,600 547,375
Allstate Corp. 34,540 828,960
American General Corp. 10,996 834,322
American International Group, Inc. 66,972 7,241,348
Aon Corp. 11,150 446,000
Chubb Corp. 7,100 399,819
Cincinnati Financial Corp. 7,200 223,200
Conseco, Inc. 13,782 246,353
Hartford Financial Services Group, Inc. 9,800 464,275
Jefferson-Pilot Corp. 4,600 313,950
Lincoln National Corp. 8,800 352,000
Loews Corp. 4,900 297,369
Marsh & McLennan Cos., Inc. 11,250 1,076,484
MBIA, Inc. 4,300 227,094
MGIC Investment Corp. 4,800 288,900
Progressive Corp. 3,200 234,000
Providian Financial Corp. 6,150 560,034
Safeco Corp. 5,900 146,394
St. Paul Cos., Inc. 10,168 342,535
Torchmark Corp. 6,000 174,375
UnumProvident Corp. 10,334 331,334
-----------
15,931,256
-----------
LEISURE -- 0.3%
Brunswick Corp. 3,900 86,775
Carnival Corp. 27,000 1,290,938
Hasbro, Inc. 8,475 161,555
Jostens, Inc. 1,100 26,744
Mattel, Inc. 17,937 235,423
-----------
1,801,435
-----------
MACHINERY & EQUIPMENT -- 1.6%
Applied Materials, Inc.* 16,300 2,063,988
Briggs & Stratton Corp. 1,000 53,625
Caterpillar, Inc. 15,700 738,881
Crane Co. 2,850 56,644
Danaher Corp. 6,200 299,150
Deere & Co. 10,300 446,763
Dover Corp. 9,000 408,375
Huttig Building Products Inc.* 633 3,125
Illinois Tool Works, Inc. 12,800 864,800
Ingersoll Rand Co. 7,100 390,944
ITT Industries, Inc. 3,900 130,406
McDermott International, Inc. 2,200 19,938
Milacron, Inc. 1,600 24,600
Nacco Industries, Inc. Class A 300 16,669
Pactiv Corp. 7,300 77,562
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
MACHINERY & EQUIPMENT (CONTINUED)
Pall Corp. 5,333 $ 114,993
Parker-Hannifin Corp. 4,625 237,320
Snap-On, Inc. 2,800 74,375
Stanley Works, Inc. 3,800 114,475
Tenneco Automotive Inc 1,460 13,596
Thermo Electron Corp.* 6,800 102,000
Timken Co. 2,500 51,094
Tyco International, Ltd. 71,904 2,795,268
-----------
9,098,591
-----------
MEDIA -- 3.5%
CBS Corp.* 33,411 2,136,216
Clear Channel Communications, Inc.* 14,100 1,258,425
Comcast Corp. Class A 4,800 229,800
Comcast Corp. Special Class A Non-Voting 27,500 1,388,750
Dow Jones & Co., Inc. 4,000 272,000
Gannett Co., Inc. 12,300 1,003,219
Knight-Ridder, Inc. 3,400 202,300
McGraw-Hill Cos., Inc. 8,500 523,813
Mediaone Group* 26,500 2,035,531
Meredith Corp. 2,300 95,881
New York Times Co. Class A 7,800 383,175
Omnicom Group, Inc. 7,900 790,000
R.R. Donnelley & Sons Co. 5,900 146,394
Time Warner, Inc. 55,900 4,049,256
Times Mirror Co. 2,700 180,900
Tribune Co. 10,200 561,638
Viacom, Inc. Class A* 1,120 67,690
Viacom, Inc. Class B* 29,286 1,769,973
Walt Disney Co. 89,900 2,629,575
-----------
19,724,536
-----------
METALS -- 0.7%
Alcan Aluminium, Ltd. 9,800 403,638
Alcoa, Inc. 16,300 1,352,900
Barrick Gold Corp. 17,200 304,225
Bethlehem Steel Corp.* 4,500 37,688
Engelhard Corp. 5,287 99,792
Freeport-McMoran Copper & Gold, Inc. 7,100 149,988
Homestake Mining Co. 11,200 87,500
Inco, Ltd. 7,900 185,650
Newmont Mining Corp. 7,174 175,763
Nucor Corp. 3,800 208,288
Phelps Dodge Corp. 3,777 253,531
Placer Dome, Inc. 14,000 150,500
Reynolds Metals Co. 2,700 206,888
USX-U.S. Steel Group, Inc. 3,300 108,900
Worthington Industries, Inc. 3,850 63,525
-----------
3,788,776
-----------
MISCELLANEOUS FINANCE -- 3.1%
American Express Co. 19,400 3,225,250
Associates First Capital Corp. Class A 31,782 872,019
Bear Stearns Cos., Inc. 5,155 220,376
Capital One Financial Corp. 8,500 409,594
Charles Schwab Corp. 35,050 1,345,044
Countrywide Credit Industries, Inc. 4,800 121,200
See Notes to Financial Statements.
73
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
MISCELLANEOUS FINANCE (CONTINUED)
Equifax, Inc. 6,300 $ 148,444
Federal Home Loan Mortgage Corp. 30,600 1,440,113
Federal National Mortgage Association 44,300 2,765,981
Franklin Resources, Inc. 10,900 349,481
Household International, Inc. 21,133 787,204
Lehman Brothers Holdings, Inc. 4,900 414,969
Merrill Lynch & Co., Inc. 15,500 1,294,250
Morgan Stanley Dean Witter & Co. 24,669 3,521,500
PaineWebber Group, Inc. 6,200 240,638
SLM Holding Corp. 7,100 299,975
T. Rowe Price Associates, Inc. 5,100 187,744
-----------
17,643,782
-----------
OFFICE EQUIPMENT -- 15.1%
3Com Corp.* 15,700 736,919
Adobe Systems, Inc. 5,000 336,250
Apple Computer, Inc.* 6,900 708,975
Autodesk, Inc. 2,600 87,588
BMC Software, Inc.* 10,300 822,713
Cabletron Systems, Inc.* 7,400 192,400
Cisco Systems, Inc.* 140,600 15,052,988
Citrix Systems, Inc.* 3,800 467,163
Compaq Computer Corp. 73,721 1,995,075
Computer Associates International, Inc. 23,562 1,647,867
Compuware Corp.* 16,100 598,719
Comverse Technology, Inc.* 3,100 448,531
Dell Computer, Inc.* 109,900 5,598,031
EMC Corp.* 43,800 4,785,150
Hewlett Packard Co. 43,800 4,990,463
International Business Machines Corp. 78,200 8,445,600
Lexmark International Group, Inc. Class A* 5,600 506,800
Microsoft Corp.* 220,700 25,752,931
Network Appliance, Inc.* 6,000 498,000
Novell, Inc.* 14,500 578,188
Pitney Bowes, Inc. 11,900 574,919
Seagate Technology, Inc.* 8,850 412,078
Silicon Graphics, Inc.* 8,154 80,011
Sun Microsystems, Inc.* 67,200 5,199,600
Unisys Corp.* 12,300 392,831
Xerox Corp. 28,600 648,863
Yahoo! Inc.* 11,400 4,932,638
-----------
86,491,291
-----------
OIL & GAS -- 5.1%
Amerada Hess Corp. 3,900 221,325
Anadarko Petroleum Corp. 5,400 184,275
Apache Corp. 4,800 177,300
Ashland, Inc. 2,900 95,519
Atlantic Richfield Co. 14,300 1,236,950
Burlington Resources, Inc. 9,282 306,886
Chevron Corp. 28,500 2,468,813
Coastal Corp. 9,300 329,569
Conoco, Inc. Class B 27,567 685,729
El Paso Energy Corp. 9,400 364,838
Enron Corp. 30,600 1,357,875
Exxon Mobil Corp. 150,017 12,085,745
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
OIL & GAS (CONTINUED)
Kerr-McGee Corp. 3,812 $ 236,344
Occidental Petroleum Corp. 14,900 322,213
Phillips Petroleum Co. 10,900 512,300
Royal Dutch Petroleum Co. 92,700 5,602,556
Sunoco, Inc. 4,055 95,293
Texaco, Inc. 23,400 1,270,913
Tosco Corp. 6,400 174,000
Union Pacific Resources Group, Inc. 10,751 137,075
Unocal Corp. 10,400 349,050
USX-Marathon Group, Inc. 13,200 325,875
Williams Cos., Inc. 18,700 571,519
-----------
29,111,962
-----------
PHOTOGRAPHIC -- 0.2%
Eastman Kodak Co. 13,900 920,875
Polaroid Corp. 1,800 33,863
-----------
954,738
-----------
POLLUTION CONTROL -- 0.1%
Allied Waste Industries, Inc.* 7,800 68,738
Waste Management, Inc. 26,175 449,883
-----------
518,621
-----------
RAILROADS -- 0.3%
Burlington Northern Santa Fe Corp. 20,193 489,680
CSX Corp. 9,300 291,788
Kansas City Southern Industries, Inc. 4,800 358,200
Norfolk Southern Corp. 16,300 334,150
Union Pacific Corp. 10,600 462,425
-----------
1,936,243
-----------
RETAIL -- 5.8%
American Greetings Corp. Class A 3,100 73,238
Autozone, Inc.* 6,400 206,800
Bed, Bath & Beyond, Inc.* 5,900 204,288
Best Buy Co., Inc.* 8,700 436,631
Circuit City Stores, Inc. 8,800 396,550
Consolidated Stores Corp.* 4,700 76,375
Costco Wholesale Corp.* 9,521 868,196
CVS Corp. 17,100 682,931
Dayton Hudson Corp. 19,300 1,417,344
Dillard's, Inc. Class A 4,600 92,863
Dollar General Corp. 9,481 215,693
Federated Department Stores, Inc.* 9,200 465,175
Gap, Inc. 37,462 1,723,252
Harcourt General, Inc. 3,100 124,775
Home Depot, Inc. 95,697 6,561,226
K Mart Corp.* 21,200 213,325
Kohls Corp.* 6,900 498,094
Limited, Inc. 9,581 414,977
Longs Drug Stores, Inc. 1,700 43,881
Lowe's Cos., Inc. 16,200 967,950
May Department Stores Co. 14,400 464,400
Nordstrom, Inc. 6,100 159,744
Office Depot, Inc.* 15,900 173,906
Penney, J.C. Co. 11,500 229,281
See Notes to Financial Statements.
74
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
-------- -------------
COMMON STOCK (CONTINUED)
RETAIL (CONTINUED)
Pep Boys-Manny, Moe & Jack 2,400 $ 21,900
Rite Aid Corp. 11,100 124,181
Sears, Roebuck & Co. 16,700 508,306
Staples, Inc.* 20,400 420,750
Tandy Corp. 8,600 423,013
TJX Cos., Inc. 13,900 284,081
Toys "R" Us, Inc.* 11,000 157,438
Wal-Mart Stores, Inc. 192,400 13,299,650
Walgreen Co. 43,600 1,275,300
-----------
33,225,514
-----------
RETAIL - FOOD -- 0.5%
Albertson's, Inc. 18,260 588,885
Great Atlantic & Pacific Tea Co., Inc. 1,700 47,388
Kroger Co.* 36,000 679,500
Safeway, Inc.* 21,300 757,481
Supervalu, Inc. 5,200 104,000
Sysco Corp. 14,300 565,744
Winn-Dixie Stores, Inc. 6,400 153,200
-----------
2,896,198
-----------
TELEPHONES -- 9.4%
ADC Telecommunications, Inc.* 6,500 471,250
Alltel Corp. 13,300 1,099,744
AT&T Corp. 138,162 7,011,722
Bell Atlantic Corp. 67,104 4,131,090
BellSouth Corp. 81,500 3,815,219
CenturyTel, Inc. 6,000 284,250
Global Crossing, Ltd.* 33,970 1,696,377
GTE Corp. 42,200 2,977,738
MCI Worldcom, Inc.* 121,528 6,441,011
Nextel Communications, Inc. Class A* 15,500 1,597,469
Nortel Networks Corp. 57,960 5,853,960
QUALCOMM, Inc.* 27,600 4,859,325
SBC Communications, Inc. 147,618 7,196,378
Sprint Corp. (FON Group) 37,800 2,544,413
Sprint Corp. (PCS Group)* 18,900 1,937,250
US West, Inc. 21,911 1,577,592
-----------
53,494,788
-----------
THRIFT INSTITUTIONS -- 0.2%
Golden West Financial Corp. 7,200 241,200
Washington Mutual, Inc. 25,893 673,218
-----------
914,418
-----------
TRUCKING -- 0.0%
Cummins Engine Co., Inc. 1,600 77,300
Paccar, Inc. 3,090 136,733
Ryder System, Inc. 2,730 66,714
-----------
280,747
-----------
TOTAL COMMON STOCK
(Cost $290,685,795) 531,691,884
-----------
SHARES VALUE(DAGGER)
-------- -------------
CONVERTIBLE PREFERRED STOCK -- 0.0%
CONTAINERS
Sealed Air Corp., $2.00, 04/01/18, Series A 1,282 $ 64,741
------------
(Cost $42,011)
COUPON PAR
RATE MATURITY (000)
- -------- -------- ------
U.S. TREASURY OBLIGATIONS -- 0.5%
U.S. Treasury Bills**
4.860% 02/10/00 $ 500 497,292
5.300% 05/18/00 500 490,000
5.220% 05/25/00 1,000 978,709
4.720% 06/22/00 1,000 974,017
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,943,435) 2,940,018
------------
SHARES
--------
TEMPORARY INVESTMENTS -- 6.5%
Dreyfus Cash Management Plus #719 10,392,673 10,392,673
Goldman Sachs Financial Square
Money Market Portfolio 13,279,126 13,279,126
J.P. Morgan Institutional Prime
Money Market Portfolio 13,420,785 13,420,785
------------
TOTAL TEMPORARY INVESTMENTS
(Cost $37,092,584) 37,092,584
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $330,763,825) $571,789,227
============
- ---------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
** Securities pledged as collateral for futures contracts.
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
-------------- ------------
Futures Contracts -- Long Position
S&P 500 Index, March 2000 114 $1,040,388
=== ==========
See Notes to Financial Statements.
75
<PAGE>
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at value (Cost $330,763,825) ............................ $571,789,227
Collateral for securities loaned .................................... 93,884,069
Dividends receivable ................................................ 482,254
Interest receivable ................................................. 161,559
Receivable for capital stock sold ................................... 1,463,169
Futures margin receivable ........................................... 93,275
Other assets ........................................................ 14,583
------------
Total assets ................................................. 667,888,136
------------
LIABILITIES
Payable upon return of securities loaned ............................ 93,884,069
Payable for capital stock redeemed .................................. 47,149
Accrued expenses .................................................... 205,119
------------
Total liabilities ............................................ 94,136,337
------------
NET ASSETS
Applicable to 16,551,865 Institutional Shares and 724,441
N Shares of beneficial interest outstanding, $.001 par value (Note 7) $573,751,799
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL SHARE
($549,695,706/16,551,865) ........................................... $33.21
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER N SHARE
($24,056,093/724,441) ............................................... $33.21
======
</TABLE>
See Notes to Financial Statements.
76
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK -- 48.6%
AEROSPACE -- 1.8%
B.F. Goodrich Co. 2,700 $ 74,250
Cordant Technologies, Inc. 650 21,450
Esterline Technologies Corp.* 3,200 37,000
Litton Industries, Inc.* 5,400 269,325
Triumph Group, Inc.* 700 16,931
United Technologies Corp. 1,000 65,000
-----------
483,956
-----------
AIR TRANSPORT -- 0.7%
Alaska Air Group, Inc.* 350 12,294
Continental Airlines, Inc. Class B* 300 13,312
Delta Air Lines, Inc. 1,600 79,700
UAL Corp.* 1,100 85,319
-----------
190,625
-----------
ALCOHOLIC BEVERAGES & TOBACCO-- 0.5%
Anheuser-Busch Cos., Inc. 1,400 99,225
Universal Corp. 1,750 39,922
-----------
139,147
-----------
APPAREL, TEXTILES -- 1.2%
Jones Apparel Group, Inc.* 4,200 113,925
Liz Claiborne, Inc. 2,300 86,537
Oxford Industries, Inc. 750 14,859
Shaw Industries, Inc. 5,000 77,187
Timberland Co. Class A* 500 26,437
-----------
318,945
-----------
AUTO RELATED -- 0.5%
Avis Rent A Car, Inc.* 2,250 57,516
Dollar Thrifty Automotive Group, Inc.* 2,600 62,237
Tower Automotive, Inc.* 650 10,034
-----------
129,787
-----------
AUTOS -- 1.7%
Ford Motor Co. 4,400 235,125
General Motors Corp. 2,500 181,719
Navistar International Corp.* 750 35,531
-----------
452,375
-----------
BANKS -- 3.4%
Chase Manhattan Corp. 4,000 310,750
Citigroup, Inc. 2,700 150,019
Compass Bancshares, Inc. 1,050 23,428
Doral Financial Corp. 1,350 16,537
GBC Bancorp 1,200 22,950
Independent Bank Corp. 1,100 13,750
Southtrust Corp. 3,700 139,675
Wells Fargo Co. 5,600 226,450
-----------
903,559
-----------
BUSINESS SERVICES -- 2.7%
Amdocs, Ltd.* 1,152 39,744
Electronic Data Systems Corp. 3,000 200,812
Kelly Services, Inc. Class A 400 10,050
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Oracle Corp.* 1,500 $ 168,000
Reynolds & Reynolds Co. Class A 6,400 144,000
Viad Corp. 5,500 153,312
-----------
715,918
-----------
CASINOS -- 0.8%
Anchor Gaming* 1,050 45,412
Mandalay Resort Group* 8,400 169,050
-----------
214,462
-----------
CHEMICALS -- 0.8%
C.K. Witco Corp. 4,300 57,512
Cytec Industries, Inc.* 1,550 35,844
F.M.C. Corp.* 1,300 74,506
Schulman (A.), Inc. 900 14,625
W.R. Grace & Co.* 2,700 37,462
-----------
219,949
-----------
CONSTRUCTION -- 1.3%
Centex Corp. 3,700 91,344
Champion Enterprises, Inc.* 700 5,994
Fleetwood Enterprises, Inc. 1,650 34,031
LNR Property Corp. 1,700 33,787
Sherwin Williams Co. 4,400 92,400
Webb Corp. 2,050 51,122
York International Corp. 1,300 35,669
-----------
344,347
-----------
CONTAINERS -- 0.0%
Libbey, Inc. 300 8,625
-----------
DRUGS -- 2.0%
Amgen, Inc.* 1,900 114,000
Bristol-Myers Squibb Co. 500 32,094
Genzyme Corp.* 2,800 125,650
Medco Research, Inc.* 1,400 42,087
Merck & Co., Inc. 3,200 214,600
Priority Healthcare Corp. Class B* 237 6,858
-----------
535,289
-----------
ELECTRIC & GAS -- 1.8%
Calpine Corp.* 800 51,200
Cleco Corp. 500 16,031
Columbia Energy Group 3,100 196,075
Energy East Corp. 7,500 156,094
Public Service Co. of New Mexico 1,750 28,437
Reliant Energy, Inc. 2,000 45,750
-----------
493,587
-----------
ELECTRICAL -- 0.3%
General Semiconductor, Inc.* 3,500 49,656
Stoneridge, Inc.* 450 6,947
Technitrol, Inc. 400 17,800
-----------
74,403
-----------
See Notes to Financial Statements.
77
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK (CONTINUED)
ELECTRONICS -- 1.9%
C&D Technologies, Inc. 550 $ 23,375
Cable Design Technologies, Inc.* 1,100 25,300
Diebold, Inc. 3,300 77,550
Intel Corp. 3,100 254,975
Plexus Corp.* 800 35,200
Tellabs, Inc.* 1,600 102,600
-----------
519,000
-----------
ENERGY SERVICES -- 0.1%
Atwood Oceanics, Inc.* 50 1,931
Friede Goldman Halter, Inc.* 50 347
Gulf Island Fabrication, Inc.* 750 6,984
Seitel, Inc.* 950 6,412
-----------
15,674
-----------
FOOD & BEVERAGES -- 1.2%
Dean Foods Co. 3,200 127,200
IBP, Inc. 1,600 28,800
Smithfield Foods, Inc.* 6,350 152,400
-----------
308,400
-----------
FOREST PRODUCTS & PAPER -- 2.1%
Boise Cascade Corp. 2,700 109,350
Buckeye Technologies, Inc.* 750 11,156
Champion International Corp. 2,000 123,875
Georgia Pacific Corp. 3,900 197,925
Weyerhaeuser Co. 1,800 129,262
-----------
571,568
-----------
HEALTH CARE SERVICES -- 1.3%
AmeriPath, Inc.* 800 6,550
Cigna Corp. 800 64,450
Cooper Cos., Inc.* 500 15,063
Datascope Corp.* 550 21,588
Hanger Orthopedic Group, Inc.* 650 6,500
Lincare Holdings, Inc.* 900 31,219
Pediatrix Medical Group, Inc.* 450 3,150
Rexall Sundown, Inc.* 5,500 56,719
Wellpoint Health Networks, Inc.* 2,100 138,469
-----------
343,708
-----------
HOTELS & RESTAURANTS -- 1.3%
Bob Evans Farms, Inc. 350 5,403
Brinker International, Inc.* 2,000 48,000
Darden Restaurants, Inc. 9,275 168,109
Outback Steakhouse, Inc.* 4,800 124,500
-----------
346,012
-----------
INSURANCE -- 1.4%
AXA Financial, Inc. 6,700 226,963
AmerUs Life Holdings, Inc. Class A 900 20,700
Gallagher (Arthur J.) & Co. 1,200 77,700
PMI Group, Inc. 800 39,050
-----------
364,413
-----------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK (CONTINUED)
MACHINERY & EQUIPMENT -- 1.0%
Applied Materials, Inc.* 1,400 $ 177,275
Gardner Denver Machinery, Inc.* 1,550 25,866
Specialty Equipment Cos.* 650 15,559
SPS Technologies, Inc.* 550 17,566
Standex International Corp. 1,900 39,781
-----------
276,047
-----------
METALS -- 0.7%
Alcoa, Inc. 1,900 157,700
Reliance Steel & Aluminum Corp. 1,200 28,125
-----------
185,825
-----------
MISCELLANEOUS FINANCE -- 2.5%
Advanta Corp. Class A 1,100 20,006
Lehman Brothers Holdings, Inc. 3,100 262,531
Morgan Stanley Dean Witter & Co. 1,700 242,675
PaineWebber Group, Inc. 3,800 147,488
-----------
672,700
-----------
OFFICE EQUIPMENT -- 4.0%
3Com Corp.* 1,100 51,631
Apple Computer, Inc.* 900 92,475
Compaq Computer Corp. 2,200 59,538
Dell Computer Corp.* 1,200 61,125
Hewlett Packard Co. 500 56,969
International Business Machines Corp. 3,500 378,000
Lexmark International Group, Inc. Class A* 2,600 235,300
NCR Corp.* 1,200 45,450
Tech Data Corp.* 3,050 82,541
-----------
1,063,029
-----------
OIL & GAS -- 2.7%
Coastal Corp. 9,000 318,938
Phillips Petroleum Co. 2,800 131,600
Texaco, Inc. 1,300 70,606
USX-Marathon Group, Inc. 8,400 207,375
-----------
728,519
-----------
POLLUTION CONTROL -- 0.1%
Safety-Kleen Corp.* 1,900 21,494
-----------
RAILROADS -- 0.2%
Canadian Pacific, Ltd. 2,500 53,906
-----------
RETAIL -- 2.7%
BJ's Wholesale Club, Inc.* 7,400 270,100
Dayton Hudson Corp. 1,100 80,781
Federated Department Stores, Inc.* 2,100 106,181
Intimate Brands, Inc. Class A 3,475 149,859
Musicland Stores Corp.* 3,450 29,109
Nature's Sunshine Products, Inc. 800 6,400
Ross Stores, Inc. 4,200 75,338
Wet Seal, Inc. Class A* 1,400 17,150
-----------
734,918
-----------
See Notes to Financial Statements.
78
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK (CONTINUED)
TELEPHONES -- 5.5%
ADC Telecommunications, Inc.* 4,200 $ 304,500
AT&T Corp. 4,700 238,525
Bell Atlantic Corp. 2,700 166,219
GTE Corp. 2,600 183,463
Metricom, Inc.* 1,050 82,425
Sprint Corp. (FON Group) 2,500 168,281
Telefonos de Mexico S.A. ADR 2,100 236,250
Viatel, Inc.* 1,650 88,275
-----------
1,467,938
-----------
THRIFT INSTITUTIONS -- 0.0%
Washington Federal, Inc. 450 8,831
-----------
TRUCKING -- 0.4%
CNF Transportation, Inc. 2,800 96,600
USFreightways Corp. 200 9,475
-----------
106,075
-----------
TOTAL COMMON STOCK
(Cost $11,558,678) 13,013,031
-----------
COUPON PAR
RATE MATURITY (000)
- ------ -------- -----
ASSET-BACKED SECURITIES -- 2.5%
First Plus Home Loan Trust Series 1997-3,
Class A6
7.080% 07/10/17 $ 285 281,144
Team Fleet Financing Corp. Series 1997-1,
Class A
7.350% 05/15/03 375 373,788
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $662,772) 654,932
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 8.2%
Asset Securitization Corp. Series 1997-D4,
Class PS1 IO
1.031% 04/14/29 6,178 372,636
Asset Securitization Corp. Series 1997-D5,
Class PS1 IO
1.404% 02/14/41 2,921 248,763
DLJ Mortgage Acceptance Corp.
Series 1998-A, Class A2
6.461% 05/28/28 360 332,109
Federal National Mortgage Association
Series 145, Class 1 PO
9.551% 06/25/22 456 339,507
Federal National Mortgage Association
Series 1997-20 IO
1.840% 03/25/27 2,351 122,032
Federal National Mortgage Association
Series 1997-84, Class PL IO
6.500% 02/25/09 3,873 359,153
Norwest Asset Securities Corp.
Series 1997-10, Class A6
6.750% 08/25/27 317 314,911
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ----- -------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
Structured Asset Securities Corp.
Series 1998-R3, Class A1 IO
6.100% 01/15/13 $ 591 $ 108,300
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,295,088) 2,197,411
-----------
MORTGAGE-BACKED SECURITIES -- 15.6%
Federal National Mortgage Association
6.500% 01/15/30 375 353,379
7.000% 01/15/30 1,600 1,547,750
Federal National Mortgage Association
Pool #250888
7.000% 04/01/12 1,118 1,109,883
Federal National Mortgage Association
Pool #345739
7.500% 03/01/27 47 46,768
Federal National Mortgage Association
Pool #363317
7.500% 11/01/26 13 12,481
Federal National Mortgage Association
Pool #368941
7.500% 12/01/26 333 330,228
Federal National Mortgage Association
Pool #371323
7.500% 03/01/27 253 251,442
Government National Mortgage Association
Pool #354675
6.500% 10/15/23 560 531,426
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $4,226,628) 4,183,357
-----------
CORPORATE BONDS -- 13.6%
ELECTRIC -- 0.9%
Public Service Co. of Colorado
6.600% 02/01/01 250 249,063
-----------
FINANCE - BANK -- 1.2%
BankAmerica Institutional Capital
8.070% 12/31/26 180 172,125
Providian National Bank
6.650% 02/01/04 150 142,875
-----------
315,000
-----------
FINANCE - NON-BANK -- 4.3%
Associates Corp. of North America Euro Bond
6.875% 06/20/02 190 188,813
Finova Capital Corp.
7.625% 09/21/09 150 148,500
General Motors Acceptance Corp.
5.800% 04/09/01 400 394,500
6.850% 06/17/04 250 246,563
Lehman Brothers Holdings, Inc.
8.800% 03/01/15 150 157,875
-----------
1,136,251
-----------
See Notes to Financial Statements.
79
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ----- -------------
CORPORATE BONDS (CONTINUED)
INDUSTRIAL -- 3.6%
Air Products & Chemicals, Inc.
6.862% 10/25/03 $ 135 $ 133,313
Cendant Corp.
7.750% 12/01/03 110 108,900
Cummins Engine Co., Inc.
5.650% 03/01/98 55 34,581
Ford Motor Co.
7.500% 08/01/26 130 127,075
6.375% 02/01/29 190 160,075
Fort James Corp.
6.700% 11/15/03 100 97,375
Nordstrom, Inc.
6.950% 03/15/28 40 35,400
Time Warner Entertainment, Inc.
8.375% 03/15/23 250 260,000
-----------
956,719
-----------
TELEPHONES -- 1.7%
Airtouch Communications, Inc.
6.650% 05/01/08 210 197,663
MCI Worldcom, Inc.
6.125% 04/15/02 160 156,400
Sprint Capital Corp.
6.900% 05/01/19 125 114,063
-----------
468,126
-----------
TRANSPORTATION -- 1.9% CSX Corp.
7.250% 05/01/27 135 131,288
Federal Express Corp.
7.500% 01/15/18 6 6,301
6.720% 01/15/22 412 380,303
-----------
517,892
-----------
TOTAL CORPORATE BONDS
(Cost $3,746,922) 3,643,051
-----------
SUPRANATIONAL BONDS -- 1.4%
African Development Bank
(Cost $374,797)
7.750% 12/15/01 370 375,550
-----------
YANKEE BONDS -- 2.5%
Cable & Wireless Communications Notes
6.625% 03/06/05 80 79,000
Empresa Nacional Electric
7.750% 07/15/08 150 142,500
Korea Development Bank
7.375% 09/17/04 90 88,313
Korea Electric Power Corp.
7.000% 02/01/27 80 73,900
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ----- -------------
YANKEE BONDS (CONTINUED)
Korea Electric Power Global
6.375% 12/01/03 $ 150 $ 142,313
United Utilities P.L.C.
6.450% 04/01/08 150 136,688
-----------
TOTAL YANKEE BONDS
(Cost $688,433) 662,714
-----------
U.S. TREASURY OBLIGATIONS -- 2.2%
U.S.TREASURY BILLS** -- 0.2%
5.500% 06/22/00 50 48,701
-----------
U.S. TREASURY BONDS -- 0.7%
8.875% 08/15/17 136 164,387
8.875% 02/15/19 5 6,088
8.750% 08/15/20 20 24,237
-----------
194,712
-----------
U.S. TREASURY NOTES -- 1.3%
7.000% 07/15/06 290 297,145
6.500% 10/15/06 25 24,943
5.625% 05/15/08 22 20,703
-----------
342,791
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $611,710) 586,204
-----------
SHARES
------
TEMPORARY INVESTMENTS -- 5.4%
Dreyfus Cash Management Plus #719 221,176 221,176
Goldman Sachs Financial Square
Money Market Portfolio 611,191 611,191
J.P. Morgan Institutional Prime
Money Market Portfolio 614,326 614,326
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $1,446,693) 1,446,693
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $25,611,721) $26,762,943
============
- --------------
(DAGGER) See Note 2a to the Financial Statements.
* Non-income producing security.
** Security pledged as collateral for futures contracts.
ADR -- American Depositary Receipt.
IO -- Interest Only Security.
PO -- Principal Only Security; interest rate is effective yield.
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
---------- ------------
Futures Contracts -- Long Position
U.S. Treasury Notes, March 2000 10 $(17,143)
== =========
See Notes to Financial Statements.
80
<PAGE>
HARRIS INSIGHT FUNDS
BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $25,611,721) ................. $26,762,943
Collateral for securities loaned ........................ 2,467,303
Dividends receivable .................................... 9,795
Interest receivable ..................................... 181,368
Receivable for capital stock sold ....................... 2,764
Other assets ............................................ 21,265
-----------
Total assets ..................................... 29,445,438
-----------
LIABILITIES
Payable upon return of securities loaned ................ 2,467,303
Payable for securities purchased ........................ 2,031,005
Payable for capital stock redeemed ...................... 660,590
Futures margin payable .................................. 4,063
Accrued expenses ........................................ 16,230
-----------
Total liabilities ................................ 5,179,191
-----------
NET ASSETS
Applicable to 1,766,657 Institutional Shares,
186,747 N Shares and 6,784 A Shares
of beneficial interest outstanding,
$.001 par value (Note 7) ................................ $24,266,247
===========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER INSTITUTIONAL SHARE
($21,870,646/1,766,657) ................................. $12.38
======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER N SHARE
($2,311,624/186,747) .................................... $12.38
======
NET ASSET VALUE AND REDEMPTION PRICE PER A SHARE
($83,977/6,784) ......................................... $12.38
======
MAXIMUM PUBLIC OFFERING PRICE PER A SHARE
($12.38/0.945) .......................................... $13.10
======
See Notes to Financial Statements.
81
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK -- 92.2%
AUSTRALIA -- 3.6%
Broken Hill Proprietary Co., Ltd. 215,000 $ 2,825,241
National Australia Bank, Ltd. 186,112 2,849,021
North, Ltd. 625,000 1,474,144
Orica, Ltd. 495,000 2,670,015
------------
9,818,421
------------
AUSTRIA -- 1.9%
Bank Austria A.G 30,500 1,720,214
Boehler-Uddeholm A.G 35,000 1,614,463
VA Technologie A.G 27,700 1,827,324
------------
5,162,001
------------
BRAZIL -- 2.3%
Companhia Vale do Rio Doce ADR 55,000 1,533,306
Embratel Participacoes S.A. ADR 123,000 3,351,750
Uniao de Bancos Brasileiros S.A. GDR 48,000 1,446,000
------------
6,331,056
------------
CANADA -- 1.7%
Methanex Corp.* 671,000 1,836,127
Moore Corp., Ltd. 214,500 1,300,406
Nexfor, Inc. 264,000 1,536,266
------------
4,672,799
------------
CHINA -- 0.3%
Shandong Huaneng Power Co., Ltd. ADR 221,000 953,063
------------
CROATIA -- 0.6%
Pliva D.D. GDR 116,000 1,544,030
------------
CZECH REPUBLIC -- 2.2%
Czech Power Co.* 1,033,000 2,557,039
Komercni Banka A.S. GDR* 636,800 3,387,776
------------
5,944,815
------------
DENMARK -- 0.9%
Forsikringsselskabet Codan 10,600 802,574
Unidanmark A.S.-A 25,300 1,778,751
------------
2,581,325
------------
FINLAND -- 0.9%
Fortum Corp. 219,400 994,360
Kemira Oyj 253,900 1,547,079
------------
2,541,439
------------
FRANCE -- 4.6%
Alcatel 12,000 2,755,565
Aventis S.A 50,000 2,905,630
Banque Nationale de Paris 13,294 1,226,438
Compagnie De Saint Gobain 9,500 1,786,333
Scor S.A 50,000 2,205,660
Usinor S.A 95,000 1,784,419
------------
12,664,045
------------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK (CONTINUED)
GERMANY -- 2.0%
BASF A.G 61,000 $ 3,188,539
Bilfinger & Berger Bau A.G 26,000 497,532
Viag A.G 92,300 1,722,549
------------
5,408,620
------------
GREECE -- 0.5%
Hellenic Telecommunications Organization
(OTE) S.A 60,000 1,425,828
------------
HONG KONG -- 5.4%
HSBC Holdings P.L.C 210,400 2,950,228
Hutchison Whampoa, Ltd. 218,000 3,168,972
Jardine Matheson Holdings, Ltd. 587,067 2,313,044
Smartone Telecommunications Holdings,
Ltd 499,000 2,407,217
Swire Pacific, Ltd. - A 499,000 2,946,433
Techtronic Industries Co. 6,726,000 1,098,864
------------
14,884,758
------------
HUNGARY -- 0.5%
Magyar Tavkozlesi Rt. ADR 40,000 1,440,000
------------
INDIA -- 0.4%
State Bank of India, Ltd. GDR 87,000 1,061,400
------------
INDONESIA -- 0.7%
PT Indosat 870,000 1,942,326
------------
IRELAND -- 0.5%
Elan Corp. P.L.C. ADR* 50,000 1,475,000
------------
ITALY -- 1.2%
Burgo (Cartiere) S.P.A 179,000 1,179,031
Societa Assicuratrice Industriale (SAI) 428,000 2,129,439
------------
3,308,470
------------
JAPAN -- 18.9%
Aoyama Trading Co., Ltd. 95,000 2,036,312
Asahi Chemical Industry Co., Ltd. 510,000 2,620,632
Dai-Ichi Kangyo Bank, Ltd. 316,000 2,953,705
Daiichi Pharmaceutical Co., Ltd. 170,000 2,211,314
Daito Trust Construction Co., Ltd. 227,800 2,541,764
Daiwa House Industry Co., Ltd. 262,000 1,948,909
Daiwa Securities Co., Ltd. 325,000 5,086,376
Dowa Fire & Marine Insurance Co. 816,000 2,204,326
Hitachi, Ltd. 373,000 5,987,276
Kyudenko Co., Ltd. 524,000 1,846,335
Kyushu Electric Power Co., Inc. 90 1,330
Marubeni Corp. 1,040,000 4,366,840
Marui Co., Ltd. 130,000 1,941,666
Nippon Fire & Marine Insurance Co., Ltd. 928,000 2,770,285
Nishimatsu Construction Co., Ltd. 467,000 1,874,033
NTT Mobile Communications Network,
Inc 130 5,000,489
Sankyo Co., Ltd. 92,000 1,890,966
Sumitomo Trust & Banking Co., Ltd. 493,000 3,329,451
Toyo Trust & Banking Co., Ltd. 326,000 1,340,119
------------
51,952,128
------------
See Notes to Financial Statements.
82
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK (CONTINUED)
KOREA -- 2.1%
Korea Fund, Inc.* 335,000 $ 5,695,000
------------
MALAYSIA -- 2.5%
Malakoff BHD 1,075,000 2,828,910
Malayan Banking BHD 1,130,000 4,014,421
------------
6,843,331
------------
MEXICO -- 1.2%
Telefonos de Mexico S.A. ADR 30,000 3,375,000
------------
NETHERLANDS -- 3.0%
DSM N.V 36,000 1,443,046
European Vinyls Corp. International N.V. 184,000 2,520,294
Koninklijke KPN N.V 45,000 4,391,681
------------
8,355,021
------------
NEW ZEALAND -- 2.7%
Air New Zealand, Ltd. 1,525,000 2,231,075
Carter Holt Harvey, Ltd. 1,801,500 2,353,209
Fletcher Challenge Energy, Ltd. 1,035,000 2,703,938
------------
7,288,222
------------
NORWAY -- 1.7%
Bergesen D.Y. A.S.A. - B 89,400 1,528,014
Odfjell A.S.A 98,100 1,223,879
Union Bank of Norway 83,000 1,926,018
------------
4,677,911
------------
PERU -- 0.3%
Southern Peru Copper Corp., Ltd. 58,000 895,375
------------
PHILIPPINES -- 1.7%
Philippine Long Distance Telephone Co. 98,000 2,492,556
Philippine National Bank* 891,920 2,102,541
SM Prime Holdings, Inc. 600,000 113,151
------------
4,708,248
------------
RUSSIA -- 1.1%
Lukoil Holding ADR 21,300 1,107,600
Rostelecom ADR* 120,000 2,025,000
------------
3,132,600
------------
SINGAPORE -- 3.1%
Asia Pulp & Paper Co., Ltd. ADR* 308,000 2,425,500
City Developments, Ltd. 480,000 2,809,967
United Overseas Bank, Ltd. 386,064 3,407,470
------------
8,642,937
------------
SLOVAKIA -- 0.3%
Nafta A.S 20,000 171,855
Slovakofarma A.S. GDR 157,000 419,190
Vychodoslovenske Zeleziarne A.S.* 89,000 304,212
------------
895,257
------------
SLOVENIA -- 0.5%
SKB Banka D.D. GDR 132,000 1,485,000
------------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK (CONTINUED)
SOUTH AFRICA -- 2.0%
Anglogold, Ltd. 48,159 $ 2,477,196
Standard Bank Investment Corp., Ltd. 732,300 3,039,848
------------
5,517,044
------------
SPAIN -- 3.7%
Iberdrola S.A 172,774 2,394,370
Repsol S.A 146,906 3,405,958
Telefonica S.A.* 178,752 4,464,749
------------
10,265,077
------------
SWEDEN -- 2.8%
ABB, Ltd. 23,669 2,884,903
Assidoman AB 125,000 2,034,850
AstraZeneca Group P.L.C 64,095 2,712,059
------------
7,631,812
------------
SWITZERLAND -- 2.6%
ABB, Ltd. 18,155 2,220,490
Schweizerische Lebensversicherungs und
Rentenanstalt 4,250 2,468,913
UBS A.G 8,700 2,349,432
------------
7,038,835
------------
TAIWAN -- 0.5%
R.O.C. Taiwan Fund* 170,000 1,434,375
------------
THAILAND -- 2.5%
Bangkok Bank Public Co., Ltd.* 500,000 1,261,118
Thai Farmers Bank Public Co., Ltd.* 2,000,000 3,345,281
Thailand International Fund* 230 2,265,500
------------
6,871,899
------------
UNITED KINGDOM -- 8.8%
British Airways P.L.C 215,000 1,403,050
Cable & Wireless P.L.C 220,844 3,742,090
Corus Group P.L.C 304,700 792,413
Enterprise Oil P.L.C.* 322,000 2,166,327
Marks & Spencer P.L.C 400,000 1,904,439
National Power P.L.C 327,380 1,895,809
Nycomed Amersham P.L.C 382,500 2,455,963
Rolls-Royce P.L.C 830,726 2,871,605
Royal & Sun Alliance Insurance Group
P.L.C 342,936 2,611,848
Royal Bank of Scotland Group P.L.C 131,450 2,331,396
Sainsbury (J.) P.L.C 368,732 2,080,178
------------
24,255,118
------------
TOTAL COMMON STOCK
(Cost $224,261,153) 254,119,586
------------
PREFERRED STOCK -- 0.3%
NETHERLANDS
Ballast Nedam N.V 39,000 856,280
------------
(Cost $1,766,569)
CURRENCY -- 0.0%
Euro Currency 2 2
(Cost $3) ------------
See Notes to Financial Statements.
83
<PAGE>
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ----- -------------
U.S. TREASURY OBLIGATIONS -- 6.8%
U.S. Treasury Bills
3.550% 01/20/00 $ 1,247 $ 1,244,697
4.620% 01/20/00 357 356,141
4.930% 01/20/00 2,303 2,296,095
5.030% 01/20/00 359 358,060
5.250% 01/20/00 2,745 2,737,495
5.270% 01/20/00 11,668 11,635,978
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $18,628,466) 18,628,466
------------
SHARES
------
TEMPORARY INVESTMENTS -- 0.0%
Provident Institutional Funds - TempCash
(Cost $2,299) 2,299 2,299
------------
TOTAL INVESTMENTS -- 99.3%
(Cost $244,658,490) 273,606,633
------------
OTHER ASSETS AND LIABILITIES -- 0.7%
Dividends receivable and other assets 597,081
Receivable for securities sold 1,384,799
Receivable for capital stock sold 473,054
Payable for capital stock redeemed (289,546)
Accrued expenses (350,112)
------------
1,815,276
------------
NET ASSETS -- 100.0%
Applicable to 17,171,225 Institutional Shares,
159,247 N Shares and 340 A Shares of
beneficial interest outstanding,
$.001 par value (Note 7) $275,421,909
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
SHARE ($272,886,067/17,171,225) $15.89
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($2,530,439/159,247) $15.89
======
NET ASSET VALUE AND REDEMPTION
PRICE PER A SHARE ($5,403/340) $15.89
======
MAXIMUM PUBLIC OFFERING PRICE
PER A SHARE ($15.89/0.945) (NOTE 5) $16.81
======
- -------------------
(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.
84
<PAGE>
HARRIS INSIGHT FUNDS
EMERGING MARKETS
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK -- 96.6%
ARGENTINA -- 0.9%
Telecom Argentina S.A. ADR 10,000 $ 342,500
-----------
BRAZIL -- 10.3%
Companhia Brasileira de Distribuicao Grupo
Pao de Acucar ADR 11,500 371,594
Companhia Energetica de Minas Gerais
S.A. ADR 11,500 259,686
Companhia Vale do Rio Doce ADR 16,100 448,841
Embratel Participacoes S.A. ADR 26,000 708,500
Petroleo Brasileiro S.A. ADR 26,900 689,931
Tele Sudeste Celular Participacoes S.A. ADR 17,100 663,694
Telecomunicacoes Brasileiras S.A. ADR 4,500 578,250
Usinas Siderurgicas de Minas Gerais S.A. 42,500 230,556
-----------
3,951,052
-----------
CHILE -- 1.0%
Compania de Telecomunicaciones de Chile
S.A. ADR 21,863 399,000
-----------
CHINA -- 2.0%
Huaneng Power International, Inc. ADR* 25,000 264,062
Shanghai Petrochemical Co., Ltd. 3,250,000 510,066
-----------
774,128
-----------
CROATIA -- 1.2%
Pliva D.D. GDR 35,000 465,871
-----------
CZECH REPUBLIC -- 1.2%
Komercni Banka A.S. GDR* 83,798 445,805
-----------
GREECE -- 1.0%
Hellenic Telecommunications Organization
(OTE) S.A 17,000 403,985
-----------
HONG KONG -- 6.4%
HSBC Holdings P.L.C 31,200 437,486
Hutchison Whampoa, Ltd. 46,000 668,682
Jardine Matheson Holdings, Ltd. 32,200 126,868
Smartone Telecommunications Holdings,
Ltd 108,000 521,001
Varitronix International, Ltd. 165,000 379,945
Wing Hang Bank, Ltd. 93,000 318,235
-----------
2,452,217
-----------
HUNGARY -- 4.5%
BorsodChem Rt 12,500 504,291
EGIS Rt 17,800 704,734
Magyar Tavkozlesi Rt. ADR 14,200 511,200
-----------
1,720,225
-----------
INDIA -- 3.0%
Bajaj Auto, Ltd. GDR 36,000 342,000
BSES, Ltd. GDR 20,500 261,580
Mahanagar Telephone Nigam, Ltd. GDR* 50,000 562,500
-----------
1,166,080
-----------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK (CONTINUED)
INDONESIA -- 3.5%
PT Indofood Sukses Makmur TBK* 310,000 $ 388,193
PT Indosat ADR 17,000 367,625
PT Ramayana Lestari Sentosa TBK 450,000 379,964
PT Semen Gresik (Persero) TBK 145,000 229,821
-----------
1,365,603
-----------
ISRAEL -- 3.2%
ECI Telecom, Ltd. 12,500 395,312
Koor Industries, Ltd. ADR 20,000 400,000
Teva Pharmaceutical Industries, Ltd. ADR 6,000 429,000
-----------
1,224,312
-----------
KOREA -- 12.0%
Hyundai Electronics Industries Co., Ltd 26,000 551,827
Kookmin Bank GDR 33,013 479,349
Korea Electric Power Corp. ADR 23,000 385,250
Korea Telecom Corp. ADR* 11,100 829,725
Pohang Iron & Steel Co., Ltd. ADR 5,700 199,500
Samsung Electronics Co., Ltd. GDR 6,550 800,737
SK Telecom Co., Ltd. ADR 35,727 1,371,008
-----------
4,617,396
-----------
MALAYSIA -- 7.0%
Commerce Asset Holdings BHD 120,000 307,891
Malakoff BHD 90,000 236,839
Malayan Banking BHD 116,000 412,100
Perusahaan Otomobil Nasional BHD 160,000 311,575
Road Builder (M) Holdings BHD 686,000 1,001,908
Technology Resources Industries BHD 695,000 429,797
-----------
2,700,110
-----------
MEXICO -- 7.5%
Cemex S.A. de C.V. - ADR* 20,172 562,294
Cifra S.A. de C.V. - V ADR* 22,000 440,926
Grupo Financiero Banamex Accival S.A.
de C.V. - O 137,000 549,446
Grupo Mexico S.A. - B* 103,000 510,380
Telefonos de Mexico S.A. ADR 4,600 517,500
Tubos de Acero de Mexico S.A. ADR* 22,000 298,375
-----------
2,878,921
-----------
PERU -- 1.7%
Credicorp, Ltd. 32,000 384,000
Southern Peru Copper Corp., Ltd. 18,000 277,875
-----------
661,875
-----------
PHILIPPINES -- 4.0%
Digital Telecommunications Philippines,
Inc.* 5,800,000 201,489
Metropolitan Bank & Trust Co. 53,064 381,850
Philippine Long Distance Telephone Co. ADR 18,400 476,100
Philippine National Bank* 58,320 137,479
SM Prime Holdings, Inc. 1,875,000 353,598
-----------
1,550,516
-----------
See Notes to Financial Statements.
85
<PAGE>
HARRIS INSIGHT FUNDS
EMERGING MARKETS
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCK (CONTINUED)
POLAND -- 3.4%
Budimex S.A.* 43,000 $ 296,372
Stomil Olsztyn S.A 70,000 436,759
Telekomunikacja Polska S.A. GDR* 91,000 580,125
-----------
1,313,256
-----------
RUSSIA -- 6.5%
Irkutskenergo ADR 30,000 112,500
Lukoil Holding ADR 9,000 468,000
Rostelecom ADR* 58,500 987,188
Surgutneftegaz ADR 53,900 916,300
-----------
2,483,988
-----------
SINGAPORE -- 4.7%
Asia Pulp & Paper Co., Ltd. ADR* 23,500 185,063
City Developments, Ltd. 50,000 292,705
DBS Group Holdings, Ltd. 34,890 571,899
Neptune Orient Lines, Ltd. 200,000 267,787
United Overseas Bank 54,912 484,663
-----------
1,802,117
-----------
SLOVAKIA -- 1.6%
Slovakofarma A.S. GDR 124,200 331,614
Slovenske Energeticke Stroja* 18,328 47,855
Slovnaft A.S 9,200 131,028
Vychodoslovenske Zeleziarne A.S.* 30,000 102,543
-----------
613,040
-----------
SOUTH AFRICA -- 3.0%
Edgars Consolidated Stores, Ltd. 20,000 255,402
Old Mutual P.L.C.* 200,000 544,356
Standard Bank Investment Corp., Ltd. 85,500 354,919
-----------
1,154,677
-----------
THAILAND -- 6.2%
Advanced Information Service Public Co.,
Ltd.* 36,000 604,062
Bangkok Bank Public Co., Ltd.* 178,000 448,958
Bank of Ayudhya Public Co., Ltd.* 955,000 405,682
Land & House Public Co., Ltd. 240,000 227,798
Thai Farmers Bank Public Co., Ltd.* 420,000 702,509
-----------
2,389,009
-----------
VENEZUELA -- 0.8%
Mavesa S.A. ADR 96,700 296,144
-----------
TOTAL COMMON STOCK
(Cost $26,019,992) 37,171,827
-----------
RIGHTS & WARRANTS -- 0.0%
Cemex S.A. de C.V. - ADR* (Cost $2,205) 1,260 5,198
-----------
COUPON PAR
RATE MATURITY (000) VALUE(DAGGER)
- ------ -------- ----- -------------
U.S. TREASURY OBLIGATIONS -- 3.4%
U.S. Treasury Bills
3.500% 01/20/00 $ 142 $ 141,738
5.150% 01/20/00 10 9,973
5.180% 01/20/00 35 34,904
5.200% 01/20/00 1,127 1,123,907
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,310,522) 1,310,522
-----------
SHARES
------
TEMPORARY INVESTMENTS -- 0.0%
Provident Institutional Funds - TempCash
(Cost $2,535) 2,535 2,535
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $27,335,254) 38,490,082
-----------
OTHER ASSETS AND LIABILITIES -- 0.0%
Dividends receivable and other assets 59,670
Receivable for capital stock sold 92,000
Payable for capital stock redeemed (100,000)
Accrued expenses (59,732)
-----------
(8,062)
-----------
NET ASSETS -- 100.0%
Applicable to 3,958,420 Institutional Shares,
33,605 N Shares and 571 A shares of
beneficial interest outstanding,
$.001 par value (Note 7) $38,482,020
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL SHARE
($38,154,502/3,958,420) $ 9.64
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER N SHARE
($322,047/33,605) $ 9.58
======
NET ASSET VALUE AND REDEMPTION
PRICE PER A SHARE ($5,471/571) $ 9.58
======
MAXIMUM PUBLIC OFFERING PRICE
PER A SHARE ($9.58/0.945) (NOTE 5) $10.14
======
- -------------------
(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.
86
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
MONEY MARKET FUNDS
--------------------------------------
GOVERNMENT MONEY TAX-EXEMPT
MONEY FUND FUND MONEY FUND
----------- ------------ -----------
INVESTMENT INCOME:
Interest .......................... $25,791,449 $141,384,123 $25,339,847
Dividends ......................... -- -- --
Foreign taxes withheld ............ -- -- --
----------- ------------ -----------
Total investment income ......... 25,791,449 141,384,123 25,339,847
----------- ------------ -----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) .. 542,580 2,668,708 819,216
Rule 12b-1 fee (Note 4) ........... 282,710 943,858 230,196
Shareholder services fee (Note 4) . 706,776 2,359,645 565,358
Commitment fee (Note 9) ........... 489 3,040 785
Transfer agency fee (Note 3) ...... 82,983 313,364 89,422
Administration fee (Note 3) ....... 436,115 2,283,155 677,524
Custodian fee (Note 3) ............ 49,743 238,278 83,195
Directors' fees and expenses ...... 14,277 81,936 24,046
Audit fee ......................... 14,935 76,607 21,177
Legal fee ......................... 9,306 55,095 14,718
Amortization of organization
expenses (Note 2f) .............. -- -- --
Reports to shareholders ........... 16,588 107,594 25,568
Registration fees ................. 39,674 250,745 32,528
Miscellaneous ..................... 18,498 117,246 39,836
----------- ------------ -----------
Total expenses .................. 2,214,674 9,499,271 2,623,569
----------- ------------ -----------
Less fee waivers and expense
reimbursements (Notes 3,4) ...... (243,499) (1,267,814) (79,145)
----------- ------------ -----------
Net expenses .................... 1,971,175 8,231,457 2,544,424
----------- ------------ -----------
NET INVESTMENT INCOME/(LOSS) .... 23,820,274 133,152,666 22,795,423
----------- ------------ -----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
(NOTE 6):
Net realized gain/(loss) from:
Investment transactions ......... (83,237) (14,571) (8,480)
Futures contracts ............... -- -- --
Foreign currency transactions ... -- -- --
Net change in unrealized
appreciation/(depreciation) on:
Investments ..................... -- -- --
Futures contracts ............... -- -- --
Foreign currency transactions ... -- -- --
----------- ------------ -----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS ........ (83,237) (14,571) (8,480)
----------- ------------ -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ................... $23,737,037 $133,138,095 $22,786,943
=========== ============ ===========
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
---------------------------------------------------------------------------------
SHORT/ INTERMEDIATE INTERMEDIATE CONVERTIBLE
INTERMEDIATE BOND GOVERNMENT TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .......................... $ 21,445,235 $ 12,502,919 $ 6,406,246 $ 9,743,025 $ 8,180,288 $ 796,783
Dividends ......................... -- -- -- -- -- 1,430,915
Foreign taxes withheld ............ -- -- -- -- -- --
------------ ------------ ----------- ----------- ------------ -----------
Total investment income ......... 21,445,235 12,502,919 6,406,246 9,743,025 8,180,288 2,227,698
------------ ------------ ----------- ----------- ------------ -----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) .. 2,297,876 1,194,357 669,469 1,236,094 953,658 335,222
Rule 12b-1 fee (Note 4) ........... 154 43 345 -- -- --
Shareholder services fee (Note 4) . 17,408 8,646 10,062 6,210 3,108 964
Commitment fee (Note 9) ........... 301 161 97 181 128 50
Transfer agency fee (Note 3) ...... 50,374 46,886 51,627 20,602 16,694 12,265
Administration fee (Note 3) ....... 503,868 292,757 171,256 311,340 240,107 72,356
Custodian fee (Note 3) ............ 39,844 26,566 15,629 29,657 28,667 10,468
Directors' fees and expenses ...... 10,009 5,153 3,012 5,887 4,892 1,455
Audit fee ......................... 9,081 5,537 2,976 6,105 4,360 1,324
Legal fee ......................... 5,762 3,196 1,822 3,536 2,717 865
Amortization of organization
expenses (Note 2f) .............. -- 3,996 4,015 3,996 3,996 4,015
Reports to shareholders ........... 14,731 9,998 4,371 9,710 7,172 3,176
Registration fees ................. 40,735 37,006 28,273 29,913 29,581 30,597
Miscellaneous ..................... 31,855 22,014 11,366 23,770 23,688 9,820
------------ ------------ ----------- ----------- ------------ -----------
Total expenses .................. 3,021,998 1,656,316 974,320 1,687,001 1,318,768 482,577
------------ ------------ ----------- ----------- ------------ -----------
Less fee waivers and expense
reimbursements (Notes 3,4) ...... (1,034,828) (545,150) (448,943) (249,836) (199,578) (41,036)
------------ ------------ ----------- ----------- ------------ -----------
Net expenses .................... 1,987,170 1,111,166 525,377 1,437,165 1,119,190 441,541
------------ ------------ ----------- ----------- ------------ -----------
NET INVESTMENT INCOME/(LOSS) .... 19,458,065 11,391,753 5,880,869 8,305,860 7,061,098 1,786,157
------------ ------------ ----------- ----------- ------------ -----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
(NOTE 6):
Net realized gain/(loss) from:
Investment transactions ......... (3,479,422) (3,485,945) (963,864) (3,466,285) (3,563,951) (400,310)
Futures contracts ............... (285,532) (646,563) (95,157) -- -- --
Foreign currency transactions ... -- -- -- -- -- --
Net change in unrealized
appreciation/(depreciation) on:
Investments ..................... (13,110,314) (8,720,194) (5,723,108) (5,640,837) (8,423,471) 12,151,002
Futures contracts ............... 9,734 (215,475) 3,555 -- -- --
Foreign currency transactions ... -- -- -- -- -- --
------------ ------------ ----------- ----------- ------------ -----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS ........ (16,865,534) (13,068,177) (6,778,574) (9,107,122) (11,987,422) 11,750,692
------------ ------------ ----------- ----------- ------------ -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ................... $ 2,592,531 $ (1,676,424) $ (897,705) $ (801,262) $ (4,926,324) $13,536,849
============ ============ =========== =========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-----------------------------------------------------
EQUITY SMALL-CAP
EQUITY INCOME GROWTH OPPORTUNITY
FUND FUND FUND FUND
------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .......................... $ 567,846 $ 243,657 $ 188,626 $ 691,648
Dividends ......................... 8,511,458 1,085,105 1,403,524 1,603,700
Foreign taxes withheld ............ -- -- -- --
------------- ---------- ----------- ------------
Total investment income ......... 9,079,304 1,328,762 1,592,150 2,295,348
------------- ---------- ----------- ------------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) .. 5,312,875 518,808 1,530,500 3,288,396
Rule 12b-1 fee (Note 4) ........... 253 600 1,129 39
Shareholder services fee (Note 4) . 61,972 11,989 19,109 12,038
Commitment fee (Note 9) ........... 597 84 185 417
Transfer agency fee (Note 3) ...... 121,208 31,158 48,500 54,319
Administration fee (Note 3) ....... 1,159,792 126,972 270,868 507,905
Custodian fee (Note 3) ............ 108,324 16,262 23,714 45,529
Directors' fees and expenses ...... 23,584 1,998 4,825 9,125
Audit fee ......................... 20,613 2,300 5,038 9,907
Legal fee ......................... 12,622 1,372 3,127 6,363
Amortization of organization
expenses (Note 2f) .............. -- 3,996 3,996 3,996
Reports to shareholders ........... 41,918 2,448 8,608 14,951
Registration fees ................. 44,621 34,864 36,372 29,729
Miscellaneous ..................... 36,971 6,421 9,013 21,198
------------- ---------- ----------- ------------
Total expenses .................. 6,945,350 759,272 1,964,984 4,003,912
------------- ---------- ----------- ------------
Less fee waivers and expense
reimbursements (Notes 3,4) ...... (21,643) (57,410) (74,135) (45,774)
------------- ---------- ----------- ------------
Net expenses .................... 6,923,707 701,862 1,890,849 3,958,138
------------- ---------- ----------- ------------
NET INVESTMENT INCOME/(LOSS) .... 2,155,597 626,900 (298,699) (1,662,790)
------------- ---------- ----------- ------------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
(NOTE 6):
Net realized gain/(loss) from:
Investment transactions ......... 84,682,656 2,069,010 8,358,292 44,920,374
Futures contracts ............... -- -- -- --
Foreign currency transactions ... -- -- -- --
Net change in unrealized
appreciation/(depreciation) on:
Investments ..................... (102,737,691) 4,671,318 18,642,080 83,019,598
Futures contracts ............... -- -- -- --
Foreign currency transactions ... -- -- -- --
------------- ---------- ----------- ------------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS ........ (18,055,035) 6,740,328 27,000,372 127,939,972
------------- ---------- ----------- ------------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ................... $ (15,899,438) $7,367,228 $26,701,673 $126,277,182
============= ========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-----------------------------------------------------------------
SMALL-CAP EMERGING
VALUE INDEX BALANCED INTERNATIONAL MARKETS
FUND FUND FUND FUND FUND
----------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .......................... $ 259,946 $ 1,222,037 $ 1,486,635 $ 378,516 $ 62,288
Dividends ......................... 1,496,570 5,717,647 295,642 5,160,631 377,873
Foreign taxes withheld ............ -- -- -- (418,495) (32,154)
----------- ----------- ----------- ----------- -----------
Total investment income ......... 1,756,516 6,939,684 1,782,277 5,120,652 408,007
----------- ----------- ----------- ----------- -----------
EXPENSES (NOTE 2G):
Investment advisory fee (Note 3) .. 1,029,786 1,166,714 287,180 2,440,532 334,341
Rule 12b-1 fee (Note 4) ........... 8 -- 187 7 4
Shareholder services fee (Note 4) . 1,580 48,245 6,284 5,917 404
Commitment fee (Note 9) ........... 114 555 24 267 37
Transfer agency fee (Note 3) ...... 23,326 72,964 49,193 45,158 9,924
Administration fee (Note 3) ....... 199,620 698,724 87,918 379,956 48,270
Custodian fee (Note 3) ............ 23,845 73,271 36,711 157,140 33,075
Directors' fees and expenses ...... 3,468 12,931 1,492 6,665 692
Audit fee ......................... 4,020 14,091 1,311 6,807 858
Legal fee ......................... 2,208 8,925 694 4,374 527
Amortization of organization
expenses (Note 2f) .............. 4,015 3,996 4,015 3,996 --
Reports to shareholders ........... 4,197 14,099 1,516 10,903 894
Registration fees ................. 39,394 25,972 28,858 40,062 30,153
Miscellaneous ..................... 10,389 32,795 17,794 54,622 12,817
----------- ----------- ----------- ----------- -----------
Total expenses .................. 1,345,970 2,173,282 523,177 3,156,406 471,996
----------- ----------- ----------- ----------- -----------
Less fee waivers and expense
reimbursements (Notes 3,4) ...... (70,026) (24,950) (95,512) (21,073) (17,000)
----------- ----------- ----------- ----------- -----------
Net expenses .................... 1,275,944 2,148,332 427,665 3,135,333 454,996
----------- ----------- ----------- ----------- -----------
NET INVESTMENT INCOME/(LOSS) .... 480,572 4,791,352 1,354,612 1,985,319 (46,989)
----------- ----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
(NOTE 6):
Net realized gain/(loss) from:
Investment transactions ......... 5,694,453 6,347,562 1,941,125 8,719,282 (1,311,774)
Futures contracts ............... -- 2,353,754 (64,718) -- --
Foreign currency transactions ... -- -- -- (552,497) (49,737)
Net change in unrealized
appreciation/(depreciation) on:
Investments ..................... (7,254,403) 74,310,871 (5,247,068) 47,264,349 15,424,629
Futures contracts ............... -- 538,512 (16,104) -- --
Foreign currency transactions ... -- -- -- (124,004) (427)
----------- ----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS ........ (1,559,950) 83,550,699 (3,386,765) 55,307,130 14,062,691
----------- ----------- ----------- ----------- -----------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS ................... $(1,079,378) $88,342,051 $(2,032,153) $57,292,449 $14,015,702
=========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
88 & 89
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
MONEY MARKET FUNDS
------------------------------------------
GOVERNMENT MONEY TAX-EXEMPT
MONEY FUND FUND MONEY FUND
------------ -------------- ------------
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ........................... $ 23,820,274 $ 133,152,666 $ 22,795,423
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ..................... (83,237) (14,571) (8,480)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ..................... -- -- --
------------ -------------- ------------
Increase/(decrease) in net
assets from operations ........... 23,737,037 133,138,095 22,786,943
------------ -------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............. (10,862,051) (87,629,089) (16,650,333)
N Shares ......................... (12,960,971) (45,541,649) (6,171,544)
A Shares ......................... -- -- --
------------ -------------- ------------
Total distributions from net
investment income ................ (23,823,022) (133,170,738) (22,821,877)
------------ -------------- ------------
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 ............. 48,268,284 692,887,146 (90,740,792)
N Shares ......................... 41,109,261 175,713,617 36,026,633
A Shares ......................... -- -- --
------------ -------------- ------------
Increase/(decrease) in net
assets from capital share
transactions ..................... 89,377,545 868,600,763 (54,714,159)
------------ -------------- ------------
Total increase/(decrease) in
net assets ....................... 89,291,560 868,568,120 (54,749,093)
NET ASSETS:
Beginning of period ................ 410,880,087 2,269,382,968 810,867,876
------------ -------------- ------------
End of period ...................... $500,171,647 $3,137,951,088 $756,118,783
============ ============== ============
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
---------------------------------------------------------------------------------
SHORT/ INTERMEDIATE INTERMEDIATE CONVERTIBLE
INTERMEDIATE BOND GOVERNMENT TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ........................... $ 19,458,065 $ 11,391,753 $ 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 ..................... (3,764,954) (4,132,508) (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 ..................... (13,100,580) (8,935,669) (5,719,553) (5,640,837) (8,423,471) 12,151,002
------------ ------------ ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from operations ........... 2,592,531 (1,676,424) (897,705) (801,262) (4,926,324) 13,536,849
------------ ------------ ------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............. (19,057,130) (11,182,941) (5,651,817) (8,209,955) (7,009,225) (1,766,281)
N Shares ......................... (397,304) (207,777) (221,857) (95,905) (52,810) (13,203)
A Shares ......................... (3,631) (1,035) (7,633) -- -- --
------------ ------------ ------------ ------------ ------------ -----------
Total distributions from net
investment income ................ (19,458,065) (11,391,753) (5,881,307) (8,305,860) (7,062,035) (1,779,484)
------------ ------------ ------------ ------------ ------------ -----------
Net realized gains on investments:
Institutional Shares ............. (493,108) (153,120) -- (250,099) -- (235,013)
N Shares ......................... (11,729) (3,060) -- (3,976) -- (1,676)
A Shares ......................... -- (14) -- -- -- --
------------ ------------ ------------ ------------ ------------ -----------
Total distributions from net
realized gains ................... (504,837) (156,194) -- (254,075) -- (236,689)
------------ ------------ ------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............. (22,064,925) (13,276,264) (2,279,998) (39,066,468) (31,141,291) (8,730,723)
N Shares ......................... 3,261,084 2,143,961 2,990,637 1,996,099 296,042 (120,046)
A Shares ......................... 143,020 27,521 241,243 -- -- --
------------ ------------ ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ..................... (18,660,821) (11,104,782) 951,882 (37,070,369) (30,845,249) (8,850,769)
------------ ------------ ------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets ....................... (36,031,192) (24,329,153) (5,827,130) (46,431,566) (42,833,608) 2,669,907
NET ASSETS:
Beginning of period ................ 341,672,701 186,397,437 105,288,316 226,987,114 169,969,488 49,805,258
------------ ------------ ------------ ------------ ------------ -----------
End of period ...................... $305,641,509 $162,068,284 $ 99,461,186 $180,555,548 $127,135,880 $52,475,165
============ ============ ============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
------------------------------------------------------
EQUITY SMALL-CAP
EQUITY INCOME GROWTH OPPORTUNITY
FUND FUND FUND FUND
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ........................... $ 2,155,597 $ 626,900 $ (298,699) $ (1,662,790)
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
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
------------ ----------- ------------ ------------
Increase/(decrease) in net
assets from operations ........... (15,899,438) 7,367,228 26,701,673 126,277,182
------------ ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............. (2,195,341) (611,218) -- --
N Shares ......................... (19,493) (32,230) -- --
A Shares ......................... (8) (1,496) -- --
------------ ----------- ------------ ------------
Total distributions from net
investment income ................ (2,214,842) (644,944) -- --
------------ ----------- ------------ ------------
Net realized gains on investments:
Institutional Shares ............. (84,435,865) (2,151,661) (8,366,532) (13,372,427)
N Shares ......................... (2,834,040) (150,109) (384,693) (193,389)
A Shares ......................... (17,669) (9,980) (27,793) (841)
------------ ----------- ------------ ------------
Total distributions from net
realized gains ................... (87,287,574) (2,311,750) (8,779,018) (13,566,657)
------------ ----------- ------------ ------------
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
N Shares ......................... (6,053,049) 1,138,378 (665,223) (165,827)
A Shares ......................... 178,647 431,881 676,160 21,336
------------ ----------- ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions ..................... (165,166,712) 14,669,993 20,450,618 24,034,854
------------ ----------- ------------ ------------
Total increase/(decrease) in
net assets ....................... (270,568,566) 19,080,527 38,373,273 136,745,379
NET ASSETS:
Beginning of period ................ 870,168,813 65,931,514 152,419,801 301,751,109
------------ ----------- ------------ ------------
End of period ...................... $599,600,247 $85,012,041 $190,793,074 $438,496,488
============ =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
--------------------------------------------------------------------
SMALL-CAP EMERGING
VALUE INDEX BALANCED INTERNATIONAL MARKETS
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ........................... $ 480,572 $ 4,791,352 $ 1,354,612 $ 1,985,319 $ (46,989)
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ..................... 5,694,453 8,701,316 1,876,407 8,166,785 (1,361,511)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ..................... (7,254,403) 74,849,383 (5,263,172) 47,140,345 15,424,202
------------ ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from operations ........... (1,079,378) 88,342,051 (2,032,153) 57,292,449 14,015,702
------------ ------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............. (471,898) (4,643,060) (1,278,030) (1,446,544) (61,668)
N Shares ......................... (1,307) (157,779) (70,678) (3,585) (483)
A Shares ......................... (19) -- (1,872) (8) (9)
------------ ------------ ------------ ------------ -----------
Total distributions from net
investment income ................ (473,224) (4,800,839) (1,350,580) (1,450,137) (62,160)
------------ ------------ ------------ ------------ -----------
Net realized gains on investments:
Institutional Shares ............. (1,769,690) (8,964,827) (2,411,834) -- --
N Shares ......................... (9,205) (394,221) (240,444) -- --
A Shares ......................... (50) -- (8,424) -- --
------------ ------------ ------------ ------------ -----------
Total distributions from net
realized gains ................... (1,778,945) (9,359,048) (2,660,702) -- --
------------ ------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............. (24,643,797) 116,030,603 (28,484,146) 23,375,187 5,215,893
N Shares ......................... 96,785 7,244,370 341,828 95,327 174,568
A Shares ......................... 11,396 -- 96,829 4,762 4,289
------------ ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ..................... (24,535,616) 123,274,973 (28,045,489) 23,475,276 5,394,750
------------ ------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets ....................... (27,867,163) 197,457,137 (34,088,924) 79,317,588 19,348,292
NET ASSETS:
Beginning of period ................ 144,165,709 376,294,662 58,355,171 196,104,321 19,133,728
------------ ------------ ------------ ------------ -----------
End of period ...................... $116,298,546 $573,751,799 $ 24,266,247 $275,421,909 $38,482,020
============ ============ ============ ============ ===========
</TABLE>
See Notes to Financial Statements.
90 & 91
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONEY MARKET FUNDS
------------------------------------------
GOVERNMENT MONEY TAX-EXEMPT
MONEY FUND FUND MONEY FUND
------------ -------------- ------------
<S> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ........................... $ 19,791,893 $ 100,470,937 $ 27,605,102
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ..................... 2,820 12,255 24,082
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ..................... -- -- --
------------ -------------- ------------
Increase/(decrease) in net
assets from operations .......... 19,794,713 100,483,192 27,629,184
------------ -------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............. (6,041,082) (62,505,055) (21,145,766)
N Shares ......................... (13,750,811) (37,965,882) (6,459,336)
------------ -------------- ------------
Total distributions from net
investment income ................ (19,791,893) (100,470,937) (27,605,102)
------------ -------------- ------------
Net realized gains on investments:
Institutional Shares ............. -- -- --
N Shares ......................... -- -- --
------------ -------------- ------------
Total distributions from net
realized gains ................... -- -- --
------------ -------------- ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ 98,313,647 363,757,602 108,749,809
N Shares ......................... 999,760 199,717,848 (18,963,018)
------------ -------------- ------------
Increase/(decrease) in net
assets from capital share
transactions ..................... 99,313,407 563,475,450 89,786,791
------------ -------------- ------------
Total increase/(decrease) in
net assets ....................... 99,316,227 563,487,705 89,810,873
NET ASSETS:
Beginning of period ................ 311,563,860 1,705,895,263 721,057,003
------------ -------------- ------------
End of period ...................... $410,880,087 $2,269,382,968 $810,867,876
============ ============== ============
FIXED INCOME FUNDS
---------------------------------------------------------------------------------
SHORT/ INTERMEDIATE INTERMEDIATE CONVERTIBLE
INTERMEDIATE BOND GOVERNMENT TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income/
(loss) ........................... $ 19,308,141 $ 10,034,741 $ 6,103,445 $ 7,706,236 $ 7,432,575 $ 2,108,992
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ..................... 2,908,410 1,428,165 927,189 2,440,207 2,660,619 3,966,042
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ..................... 24,109 121,675 705,013 (737,737) (1,763,510) (7,187,746)
------------ ------------ ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from operations .......... 22,240,660 11,584,581 7,735,647 9,408,706 8,329,684 (1,112,712)
------------ ------------ ------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............. (19,005,088) (9,928,728) (6,033,054) (7,676,693) (7,400,695) (2,120,236)
N Shares ......................... (304,649) (106,013) (71,099) (29,543) (31,880) (12,532)
------------ ------------ ------------ ------------ ------------ -----------
Total distributions from net
investment income ................ (19,309,737) (10,034,741) (6,104,153) (7,706,236) (7,432,575) (2,132,768)
------------ ------------ ------------ ------------ ------------ -----------
Net realized gains on investments:
Institutional Shares ............. (187,644) (1,788,220) (988,975) (2,830,031) (3,079,610) (5,044,777)
N Shares ......................... (2,526) (24,732) (19,423) (11,893) (16,541) (39,249)
------------ ------------ ------------ ------------ ------------ -----------
Total distributions from net
realized gains ................... (190,170) (1,812,952) (1,008,398) (2,841,924) (3,096,151) (5,084,026)
------------ ------------ ------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ 45,429,042 43,637,130 3,180,402 34,213,507 (8,622,818) (1,721,894)
N Shares ......................... (1,305,356) 1,640,511 1,409,794 259,648 275,998 387,694
------------ ------------ ------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ..................... 44,123,686 45,277,641 4,590,196 34,473,155 (8,346,820) (1,334,200)
------------ ------------ ------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets ....................... 46,864,439 45,014,529 5,213,292 33,333,701 (10,545,862) (9,663,706)
NET ASSETS:
Beginning of period ................ 294,808,262 141,382,908 100,075,024 193,653,413 180,515,350 59,468,964
------------ ------------ ------------ ------------ ------------ -----------
End of period ...................... $341,672,701 $186,397,437 $105,288,316 $226,987,114 $169,969,488 $49,805,258
============ ============ ============ ============ ============ ===========
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) ........................... $ 5,625,779 $ 645,065 $ 52,778 $ (806,520) $ 621,844
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ..................... 120,355,079 1,997,487 10,398,983 (2,724,319) 1,262,177
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ..................... (13,198,885) 8,267,199 19,871,546 4,631,841 (4,486,231)
------------ ----------- ------------ ------------ ------------
Increase/(decrease) in net
assets from operations .......... 112,781,973 10,909,751 30,323,307 1,101,002 (2,602,210)
------------ ----------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............. (5,466,932) (609,709) (46,318) -- (641,087)
N Shares ......................... (88,622) (24,897) -- -- (1,439)
------------ ----------- ------------ ------------ ------------
Total distributions from net
investment income ................ (5,555,554) (634,606) (46,318) -- (642,526)
------------ ----------- ------------ ------------ ------------
Net realized gains on investments:
Institutional Shares ............. (130,433,776) (1,589,832) (10,660,807) (1,166,482) (3,192,531)
N Shares ......................... (4,124,381) (93,017) (532,486) (17,416) (16,897)
------------ ----------- ------------ ------------ ------------
Total distributions from net
realized gains ................... (134,558,157) (1,682,849) (11,193,293) (1,183,898) (3,209,428)
------------ ----------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ 22,196,934 13,554,788 17,124,303 22,929,255 50,070,733
N Shares ......................... 11,615,123 2,119,058 4,305,325 2,066,357 440,834
------------ ----------- ------------ ------------ ------------
Increase/(decrease) in net
assets from capital share
transactions ..................... 33,812,057 15,673,846 21,429,628 24,995,612 50,511,567
------------ ----------- ------------ ------------ ------------
Total increase/(decrease) in
net assets ....................... 6,480,319 24,266,142 40,513,324 24,912,716 44,057,403
NET ASSETS:
Beginning of period ................ 863,688,494 41,665,372 111,906,477 276,838,393 100,108,306
------------ ----------- ------------ ------------ ------------
End of period ...................... $870,168,813 $65,931,514 $152,419,801 $301,751,109 $144,165,709
============ =========== ============ ============ ============
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) ........................... $ 3,790,469 $ 2,006,211 $ 3,007,536 $ 201,940
Net realized gain/(loss) on
investment transactions,
futures contracts and
foreign currency
transactions ..................... 17,576,723 3,788,742 (8,150,129) (5,420,986)
Net change in unrealized
appreciation/(depreciation)
of investment transactions,
futures contracts, and
foreign currency
transactions ..................... 61,514,412 (662,244) (4,212,689) (1,901,422)
------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from operations .......... 82,881,604 5,132,709 (9,355,282) (7,120,468)
------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2D):
Net investment income:
Institutional Shares ............. (3,691,322) (1,966,524) (2,471,063) (49,109)
N Shares ......................... (89,257) (56,479) (33,387) --
------------ ------------ ------------ -----------
Total distributions from net
investment income ................ (3,780,579) (2,023,003) (2,504,450) (49,109)
------------ ------------ ------------ -----------
Net realized gains on investments:
Institutional Shares ............. (17,251,334) (4,564,004) -- --
N Shares ......................... (625,478) (174,321) -- --
------------ ------------ ------------ -----------
Total distributions from net
realized gains ................... (17,876,812) (4,738,325) -- --
------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Increase/(decrease) in net
assets from capital share
transactions in:
Institutional Shares ............ 10,993,666 (11,873,103) 34,176,338 8,164,295
N Shares ......................... 4,939,039 1,741,964 364,280 19,533
------------ ------------ ------------ -----------
Increase/(decrease) in net
assets from capital share
transactions ..................... 15,932,705 (10,131,139) 34,540,618 8,183,828
------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets ....................... 77,156,918 (11,759,758) 22,680,886 1,014,251
NET ASSETS:
Beginning of period ................ 299,137,744 70,114,929 173,423,435 18,119,477
------------ ------------ ------------ -----------
End of period ...................... $376,294,662 $ 58,355,171 $196,104,321 $19,133,728
============ ============ ============ ===========
</TABLE>
See Notes to Financial Statements.
92 & 93
<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
-----------=-------------------- ---------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/99 12/31/98 12/31/99 12/31/98
--------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
INSTITUTIONAL SHARES:
Sold............................... $ 865,386,013 $ 474,602,020 $ 12,256,892,700 $ 6,077,554,330
Issued as reinvestment of dividends 684,117 681,351 14,725,672 4,855,945
Redeemed........................... (817,801,846) (376,969,724) (11,578,731,226) (5,718,652,673)
--------------- --------------- ---------------- ---------------
Net increase/(decrease)............ $ 48,268,284 $ 98,313,647 $ 692,887,146 $ 363,757,602
=============== =============== ================ ===============
N SHARES:
Sold............................... $ 1,547,547,730 $ 1,792,833,704 $ 3,989,450,052 $ 3,255,287,012
Issued as reinvestment of dividends 8,807,175 9,532,140 37,745,246 28,923,116
Redeemed........................... (1,515,245,644) (1,801,366,084) (3,851,481,681) (3,084,492,280)
--------------- --------------- ---------------- ---------------
Net increase/(decrease)............ $ 41,109,261 $ 999,760 $ 175,713,617 $ 199,717,848
=============== =============== ================ ===============
MONEY MARKET FUNDS
--------------------------------
TAX-EXEMPT MONEY FUND
------------------------------
YEAR YEAR
ENDED ENDED
12/31/99 12/31/98
------------- ---------------
<S> <C> <C>
INSTITUTIONAL SHARES:
Sold............................... $ 864,542,353 $ 1,224,139,829
Issued as reinvestment of dividends 319,324 38,515
Redeemed........................... (955,602,469) (1,115,428,535)
------------- ---------------
Net increase/(decrease)............ $ (90,740,792) $ 108,749,809
============= ===============
N SHARES:
Sold............................... $ 488,216,432 $ 421,214,364
Issued as reinvestment of dividends 4,762,800 4,957,489
Redeemed........................... (456,952,599) (445,134,871)
------------- ---------------
Net increase/(decrease)............ $ 36,026,633 $ (18,963,018)
============= ===============
</TABLE>
See Notes to Financial Statements.
94
<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
--------------------------- -------------------------- --------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold................................ $ 105,385,876 $ 98,262,177 $ 64,959,480 $ 62,185,154 $ 18,530,922 $ 29,218,220
Issued as reinvestment of dividends 2,903,918 2,067,037 4,806,720 5,589,291 5,031,977 6,595,979
Redeemed............................ (130,354,719) (54,900,172) (83,042,464) (24,137,315) (25,842,897) (32,633,797)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)............. $ (22,064,925) $ 45,429,042 $(13,276,264) $ 43,637,130 $ (2,279,998) $ 3,180,402
============= ============ ============ ============ ============ ============
N SHARES:
Sold................................ $ 8,556,052 $ 3,387,231 $ 3,099,969 $ 2,490,267 $ 3,886,237 $ 1,369,151
Issued as reinvestment of dividends 306,482 232,605 154,988 75,997 210,329 87,003
Redeemed............................ (5,601,450) (4,925,192) (1,110,996) (925,753) (1,105,929) (46,360)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)............. $ 3,261,084 $ (1,305,356) $ 2,143,961 $ 1,640,511 $ 2,990,637 $ 1,409,794
============= ============ ============ ============ ============ ============
A SHARES:
Sold................................ $ 139,390 $ -- $ 26,470 $ -- $ 262,481 $ --
Issued as reinvestment of dividends 3,630 -- 1,051 -- 7,626 --
Redeemed............................ -- -- -- -- (28,864) --
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)............. $ 143,020 $ -- $ 27,521 $ -- $ 241,243 $ --
============= ============ ============ ============ ============ ============
- -------------------------------------------------------------------------------------------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold................................ 10,494,238 9,550,792 6,585,586 6,064,826 1,154,655 1,760,474
Issued as reinvestment of dividends 290,879 200,903 489,802 545,444 315,199 396,620
Redeemed............................ (13,008,841) (5,330,155) (8,503,663) (2,351,634) (1,617,742) (1,954,680)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)............. (2,223,724) 4,421,540 (1,428,275) 4,258,636 (147,888) 202,414
============= ============ ============ ============ ============ ============
N SHARES:
Sold................................ 840,411 329,377 315,444 242,849 241,774 82,328
Issued as reinvestment of dividends 30,760 22,636 15,864 7,413 13,244 5,220
Redeemed............................ (553,334) (479,744) (113,639) (90,329) (70,131) (2,786)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)............. 317,837 (127,731) 217,669 159,933 184,887 84,762
============= ============ ============ ============ ============ ============
A SHARES:
Sold................................ 13,925 -- 2,656 -- 16,187 --
Issued as reinvestment of dividends 369 -- 108 -- 482 --
Redeemed............................ -- -- -- -- (1,775) --
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)............. 14,294 -- 2,764 -- 14,894 --
============= ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
-----------------------------------------------------------------------------------
INTERMEDIATE CONVERTIBLE
TAX-EXEMPT TAX-EXEMPT SECURITIES
FUND FUND FUND
-------------------------- -------------------------- ---------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold................................ $ 42,346,727 $ 70,456,250 $ 22,713,997 $ 18,982,201 $ 3,262,520 $ 5,672,247
Issued as reinvestment of dividends 118,955 544,842 82,743 543,487 1,990,659 7,118,875
Redeemed............................ (81,532,150) (36,787,585) (53,938,031) (28,148,506) (13,983,902) (14,513,016)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)............. $(39,066,468) $ 34,213,507 $(31,141,291) $ (8,622,818) $ (8,730,723) $ (1,721,894)
============ ============ ============ ============ ============ ============
N SHARES:
Sold................................ $ 4,586,798 $ 1,323,118 $ 5,754,104 $ 1,163,477 $ 35,761 $ 414,463
Issued as reinvestment of dividends 78,895 26,278 24,225 22,861 12,962 44,309
Redeemed............................ (2,669,594) (1,089,748) (5,482,287) (910,340) (168,769) (71,078)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)............. $ 1,996,099 $ 259,648 $ 296,042 $ 275,998 $ (120,046) $ 387,694
============ ============ ============ ============ ============ ============
A SHARES:
Sold................................ $ -- $ -- $ -- $ -- $ -- $ --
Issued as reinvestment of dividends -- -- -- -- -- --
Redeemed............................ -- -- -- -- -- --
------------ ------------ ------------ ------------ ----------- --------------
Net increase/(decrease)............. $ -- $ -- $ -- $ -- $ -- $ --
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold................................ 4,051,909 6,548,230 2,281,730 1,802,796 125,821 203,052
Issued as reinvestment of dividends 11,378 50,759 8,248 51,949 76,721 283,550
Redeemed............................ (7,801,039) (3,425,001) (5,468,897) (2,675,429) (542,932) (522,748)
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease)............. (3,737,752) 3,173,988 (3,178,919) (820,684) (340,390) (36,146)
============ ============ ============ ============ =========== ============
N SHARES:
Sold................................ 428,223 123,047 576,997 110,353 1,402 14,664
Issued as reinvestment of dividends 7,591 2,446 2,426 2,177 501 1,808
Redeemed............................ (251,628) (101,319) (551,790) (86,174) (6,573) (2,530)
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease)............. 184,186 24,174 27,633 26,356 (4,670) 13,942
============ ============ ============ ============ =========== ============
A SHARES:
Sold................................ -- -- -- -- -- --
Issued as reinvestment of dividends -- -- -- -- -- --
Redeemed............................ -- -- -- -- -- --
------------ ------------ ------------ ------------ ----------- ------------
Net increase/(decrease)............. -- -- -- -- -- --
============ ============ ============ ============ =========== ============
</TABLE>
See Notes to Financial Statements.
96 & 97
<PAGE>
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
EQUITY FUNDS
------------------------------------------------------------------------------------
EQUITY
EQUITY INCOME GROWTH
FUND FUND FUND
---------------------------- ------------------------- --------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
------------- ------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold............................. $ 48,316,783 $ 107,058,873 $ 23,857,170 $16,273,336 $ 38,943,631 $ 24,726,605
Issued as reinvestment of
dividends...................... 38,574,880 59,860,296 814,829 456,240 3,697,366 4,407,089
Redeemed......................... (246,183,973) (144,722,235) (11,572,265) (3,174,788) (22,201,316) (12,009,391)
------------- ------------- ------------ ----------- ------------ ------------
Net increase/(decrease).......... $(159,292,310) $ 22,196,934 $ 13,099,734 $13,554,788 $ 20,439,681 $ 17,124,303
============= ============= ============ =========== ============ ============
N SHARES:
Sold............................. $ 21,921,264 $ 47,707,142 $ 2,771,617 $ 2,658,901 $ 14,436,428 $ 20,830,182
Issued as reinvestment of
dividends...................... 2,232,264 3,481,957 170,959 106,802 316,046 428,210
Redeemed......................... (30,206,577) (39,573,976) (1,804,198) (646,645) (15,417,697) (16,953,067)
------------- ------------- ------------ ----------- ------------ ------------
Net increase/(decrease) $ (6,053,049) $ 11,615,123 $ 1,138,378 $ 2,119,058 $ (665,223) $ 4,305,325
============= ============= ============ =========== ============ ============
A SHARES:
Sold............................. $ 162,053 $ -- $ 447,418 $ -- $ 717,238 $ --
Issued as reinvestment of
dividends...................... 17,677 -- 11,475 -- 27,793 --
Redeemed......................... (1,083) -- (27,012) -- (68,871) --
------------- ------------- ------------ ----------- ------------ ------------
Net increase/(decrease).......... $ 178,647 $ -- $ 431,881 $ -- $ 676,160 $ --
============= ============= ============ =========== ============ ============
- -----------------------------------------------------------------------------------------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold............................. 2,945,799 6,026,791 1,204,980 904,751 1,417,164 1,017,596
Issued as reinvestment of
dividends...................... 2,574,097 3,488,559 40,558 24,434 132,021 171,897
Redeemed......................... (15,292,627) (8,209,390) (579,472) (177,434) (806,506) (489,520)
------------- ------------- ------------ ----------- ------------ ------------
Net increase/(decrease).......... (9,772,731) 1,305,960 666,066 751,751 742,679 699,973
============= ============= ============ =========== ============ ============
N SHARES:
Sold............................. 1,300,798 2,692,062 140,129 148,486 532,220 837,319
Issued as reinvestment of
dividends...................... 148,536 203,732 8,519 5,753 11,327 16,757
Redeemed......................... (1,810,166) (2,204,864) (91,308) (36,833) (566,934) (683,516)
------------- ------------- ------------ ----------- ------------ ------------
Net increase/(decrease).......... (360,832) 690,930 57,340 117,406 (23,387) 170,560
============= ============= ============ =========== ============ ============
A SHARES:
Sold............................. 9,901 -- 22,183 -- 25,945 --
Issued as reinvestment of
dividends...................... 1,213 -- 574 -- 1,001 --
Redeemed......................... (70) -- (1,337) -- (2,440) --
------------- ------------- ------------ ----------- ------------ ------------
Net increase/(decrease).......... 11,044 -- 21,420 -- 24,506 --
============= ============= ============ =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
-------------------------------------------------------------------------------------
SMALL-CAP SMALL-CAP
OPPORTUNITY VALUE INDEX
FUND FUND FUND
--------------------------- -------------------------- --------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold............................. $ 140,040,589 $ 70,401,482 $ 18,132,377 $ 65,891,159 $190,164,077 $ 56,739,210
Issued as reinvestment of
dividends...................... 7,635,715 644,720 1,787,196 3,337,416 8,488,851 11,324,663
Redeemed......................... (123,496,959) (48,116,947) (44,563,370) (19,157,842) (82,622,325) (57,070,207)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease).......... $ 24,179,345 $ 22,929,255 $(24,643,797) $ 50,070,733 $116,030,603 $ 10,993,666
============= ============ ============ ============ ============ ============
N SHARES:
Sold............................. $ 27,102,875 $ 46,956,439 $ 2,269,782 $ 697,922 $ 12,716,120 $ 8,005,096
Issued as reinvestment of
dividends...................... 113,642 11,681 10,176 18,194 469,975 575,857
Redeemed......................... (27,382,344) (44,901,763) (2,183,173) (275,282) (5,941,725) (3,641,914)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) $ (165,827) $ 2,066,357 $ 96,785 $ 440,834 $ 7,244,370 $ 4,939,039
============= ============ ============ ============ ============ ============
A SHARES:
Sold............................. $ 28,467 $ -- $ 11,326 $ --
Issued as reinvestment of
dividends...................... 841 -- 70 --
Redeemed......................... (7,972) -- -- --
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease).......... $ 21,336 $ -- $ 11,396 $ --
============= ============ ============ ============ ============ ============
- ----------------------------------------------------------------------------------------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold............................. 7,224,683 4,046,918 629,304 2,156,720 6,195,290 2,172,445
Issued as reinvestment of
dividends...................... 348,822 33,302 59,776 97,119 268,632 413,390
Redeemed......................... (6,314,208) (2,956,250) (1,550,074) (600,967) (2,702,006) (2,222,548)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease).......... 1,259,297 1,123,970 (860,994) 1,652,872 3,761,916 363,287
============= ============ ============ ============ ============ ============
N SHARES:
Sold............................. 1,563,379 2,880,683 81,366 20,368 416,674 310,345
Issued as reinvestment of
dividends...................... 5,230 606 341 526 14,859 21,022
Redeemed......................... (1,585,146) (2,738,838) (78,057) (8,868) (191,362) (142,365)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease).......... (16,537) 142,451 3,650 12,026 240,171 189,002
============= ============ ============ ============ ============ ============
A SHARES:
Sold............................. 1,570 -- 398 --
Issued as reinvestment of
dividends...................... 39 -- 2 --
Redeemed......................... (440) -- -- --
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease).......... 1,169 -- 400 --
============= ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY FUNDS
---------------------------------------------------------------------------------
EMERGING
BALANCED INTERNATIONAL MARKETS
FUND FUND FUND
-------------------------- -------------------------- ------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
------------ ------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
AMOUNT
- ------
INSTITUTIONAL SHARES:
Sold............................. $ 4,534,958 $ 8,051,050 $103,993,552 $100,158,674 $ 7,340,024 $ 9,517,265
Issued as reinvestment of
dividends...................... 3,687,911 6,530,108 723,519 1,121,898 54,602 44,300
Redeemed......................... (36,707,015) (26,454,261) (81,341,884) (67,104,234) (2,178,733) (1,397,270)
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease).......... $(28,484,146) $(11,873,103) $ 23,375,187 $ 34,176,338 $ 5,215,893 $ 8,164,295
============ ============ ============ ============ =========== ===========
N SHARES:
Sold............................. $ 1,838,066 $ 1,756,331 $ 18,066,136 $ 23,331,527 $ 207,316 $ 103,114
Issued as reinvestment of
dividends...................... 301,289 230,800 2,397 27,871 483 --
Redeemed......................... (1,797,527) (245,167) (17,973,206) (22,995,118) (33,231) (83,581)
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease) $ 341,828 $ 1,741,964 $ 95,327 $ 364,280 $ 174,568 $ 19,533
============ ============ ============ ============ =========== ===========
A SHARES:
Sold............................. $ 87,820 $ -- $ 4,854 $ -- $ 4,280 $ --
Issued as reinvestment of
dividends...................... 10,296 -- 8 -- 9 --
Redeemed......................... (1,287) -- (100) -- -- --
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease).......... $ 96,829 $ -- $ 4,762 $ -- $ 4,289 $ --
============ ============ ============ ============ =========== ===========
- --------------------------------------------------------------------------------------------------------------------
SHARES
- ------
INSTITUTIONAL SHARES:
Sold............................. 320,649 527,780 7,437,408 7,821,444 983,502 1,372,793
Issued as reinvestment of
dividends...................... 290,697 446,869 47,351 90,989 6,320 7,745
Redeemed......................... (2,723,810) (1,744,530) (5,807,576) (5,331,529) (281,212) (239,318)
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease).......... (2,112,464) (769,881) 1,677,183 2,580,904 708,610 1,141,220
============ ============ ============ ============ =========== ===========
N SHARES:
Sold............................. 129,757 115,400 1,447,182 1,842,292 27,345 13,464
Issued as reinvestment of
dividends...................... 24,226 15,932 157 2,260 56 --
Redeemed......................... (128,469) (16,971) (1,420,194) (1,807,396) (4,383) (14,143)
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease).......... 25,514 114,361 27,145 37,156 23,018 (679)
============ ============ ============ ============ =========== ===========
A SHARES:
Sold............................. 6,038 -- 346 -- 570 --
Issued as reinvestment of
dividends...................... 836 -- 1 -- 1 --
Redeemed......................... (90) -- (7) -- -- --
------------ ------------ ------------ ------------ ----------- -----------
Net increase/(decrease).......... 6,784 -- 340 -- 571 --
============ ============ ============ ============ =========== ===========
</TABLE>
See Notes to Financial Statements.
98 & 99
<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
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
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
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
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
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
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
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
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
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
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
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
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
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.
100 & 101
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET NET
ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET UNREALIZED FROM NET FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT REALIZED END OF
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- -----------------------
SHORT/INTERMEDIATE FUND
- -----------------------
INSTITUTIONAL SHARES
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
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
07/22/99(3) to 12/31/99 $10.02 $0.258 $(0.250) $(0.258) $ -- $ 9.77
- ---------
BOND FUND
- ---------
INSTITUTIONAL SHARES
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
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
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
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
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
02/12/99(3) to 12/31/99 $16.44 $0.761 $(0.880) $(0.761) $ -- $15.56
- ----------------------------
INTERMEDIATE TAX-EXEMPT FUND
- ----------------------------
INSTITUTIONAL SHARES
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
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
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
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
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
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
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
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
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
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
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
02/12/99(3) to 12/31/99 (0.72)%(2)(4) $ 232 0.75%(1) 1.18%(1) 5.47%(1) 76.50%
- ----------------------------
INTERMEDIATE TAX-EXEMPT FUND
- ----------------------------
INSTITUTIONAL SHARES
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
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
</TABLE>
See Notes to Financial Statements.
102 & 103
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET NET
ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET UNREALIZED FROM NET FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT REALIZED END OF
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- ---------------
TAX-EXEMPT FUND
- ---------------
INSTITUTIONAL SHARES
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
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
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
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
- -----------
EQUITY FUND
- -----------
INSTITUTIONAL SHARES
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
N SHARES
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
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
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
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
02/10/99(3) to 12/31/99 $19.26 $ 0.098 $ 1.744 $(0.124) $(0.578) $20.40
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME PORTFOLIO
TOTAL PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET TURNOVER
RETURN (000) ASSETS WAIVERS) ASSETS RATE
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- ---------------
TAX-EXEMPT FUND
- ---------------
INSTITUTIONAL SHARES
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
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
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
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)
- -----------
EQUITY FUND
- -----------
INSTITUTIONAL SHARES
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
N SHARES
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
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
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
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
02/10/99(3) to 12/31/99 9.66%(2)(4) $ 437 1.24%(1) 1.30%(1) 0.55%(1) 18.57%
</TABLE>
See Notes to Financial Statements.
104 & 105
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET NET
ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET UNREALIZED FROM NET FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT REALIZED END OF
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- -----------
GROWTH FUND
- -----------
INSTITUTIONAL SHARES
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
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
02/05/99(3) to 12/31/99 $27.00 $(0.073) $ 3.420 $ -- $(1.387) $28.96
- --------------------------
SMALL-CAP OPPORTUNITY FUND
- --------------------------
INSTITUTIONAL SHARES
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
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
03/05/99(3) to 12/31/99 $16.67 $(0.092) $ 8.177 $ -- $(0.765) $23.99
- --------------------
SMALL-CAP VALUE FUND
- --------------------
INSTITUTIONAL SHARES
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
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
08/18/99(3) to 12/31/99 $29.09 $ 0.008 $ 1.368 $(0.051) $(0.135) $30.28
- ----------
INDEX FUND
- ----------
INSTITUTIONAL SHARES
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
NET RATIO OF EXPENSES
ASSETS RATIO OF TO AVERAGE RATIO OF NET
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME PORTFOLIO
TOTAL PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET TURNOVER
RETURN (000) ASSETS WAIVERS) ASSETS RATE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- -----------
GROWTH FUND
- -----------
INSTITUTIONAL SHARES
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
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
02/05/99(3) to 12/31/99 12.65%(2)(4) $ 710 1.42%(1) 1.46%(1) (0.48)%(1) 35.11%
- --------------------------
SMALL-CAP OPPORTUNITY FUND
- --------------------------
INSTITUTIONAL SHARES
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
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
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
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
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
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
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
</TABLE>
See Notes to Financial Statements.
106 & 107
<PAGE>
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET NET
ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET UNREALIZED FROM NET FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT REALIZED END OF
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS PERIOD
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- ----------
INDEX FUND (CONTINUED)
- ----------
N SHARES
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
- -------------
BALANCED FUND
- -------------
INSTITUTIONAL SHARES
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
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
02/10/99(3) to 12/31/99 $14.14 $ 0.340 $(0.305) $(0.394) $(1.401) $12.38
- ------------------
INTERNATIONAL FUND
- ------------------
INSTITUTIONAL SHARES
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
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
03/05/99(3) to 12/31/99 $11.90 $(0.009) $ 4.022 $(0.023) $ -- $15.89
- ---------------------
EMERGING MARKETS FUND
- ---------------------
INSTITUTIONAL SHARES
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
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
08/12/99(3) to 12/31/99 $ 7.47 $(0.024) $ 2.150 $(0.016) $ -- $ 9.58
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
- --------------------------------------------------------------------------------------------------------------------
- ----------
INDEX FUND (CONTINUED)
- ----------
N SHARES
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
- -------------
BALANCED FUND
- -------------
INSTITUTIONAL SHARES
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
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) 1 08.29(1)
A SHARES
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
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
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
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
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
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
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.
</FN>
</TABLE>
See Notes to Financial Statements.
108 & 109
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. ORGANIZATION
HT Insight Funds, Inc., doing business as Harris Insight Funds (the
"Company"), was incorporated in Maryland on September 16, 1987. The Company is
an open-end management investment company and currently offers five diversified
investment portfolios. Harris Insight Funds Trust (the "Trust") was organized as
a business trust under the laws of The Commonwealth of Massachusetts on December
6, 1995. The Trust is an open-end management investment company and currently
offers thirteen diversified investment portfolios. The portfolios of the Company
and the Trust (each a "Fund" and collectively, the "Funds") are as follows:
COMPANY:
EQUITY FUNDS:
Harris Insight Equity Fund ("Equity Fund")
FIXED INCOME FUNDS:
Harris Insight Short/Intermediate Bond Fund
("Short/Intermediate Fund")
MONEY MARKET FUNDS:
Harris Insight Government Money Market Fund ("Government Money Fund")
Harris Insight Money Market Fund ("Money Fund")
Harris Insight Tax-Exempt Money Market Fund ("Tax-Exempt Money Fund")
TRUST:
EQUITY FUNDS:
Harris Insight Equity Income Fund ("Equity Income Fund")
Harris Insight Growth Fund ("Growth Fund")
Harris Insight Small-Cap Opportunity Fund ("Small-Cap Opportunity Fund")
Harris Insight Small-Cap Value Fund ("Small-Cap Value Fund")
Harris Insight Index Fund ("Index Fund")
Harris Insight International Fund ("International Fund")
Harris Insight Balanced Fund ("Balanced Fund")
Harris Insight Emerging Markets Fund ("Emerging Markets Fund")
FIXED INCOME FUNDS:
Harris Insight Convertible Securities Fund ("Convertible Securities Fund")
Harris Insight Bond Fund ("Bond Fund")
Harris Insight Intermediate Government Bond Fund ("Intermediate Government
Fund")
Harris Insight Intermediate Tax-Exempt Bond Fund ("Intermediate
Tax-Exempt Fund")
Harris Insight Tax-Exempt Bond Fund ("Tax-Exempt Fund")
Each of the Funds currently offers three classes of shares (Institutional
shares, N shares, and A shares), with the exception of the Index Fund and the
Money Market Funds, each of which offers two classes (Institutional shares and N
shares). The N shares of each Fund were formerly known as Class A; the current A
shares (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 December 31, 1999, no A
shares of the Intermediate Tax-Exempt Bond Fund, Tax-Exempt Bond Fund, and
Convertible Securities Fund had been issued.
110
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies used by the
Funds in the preparation of the financial statements which are in accordance
with accounting principles generally acccepted 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 or Board of Directors of the Funds,
as the case may be. Prices used for valuations of securities are provided by
independent pricing services and brokers. Bonds maturing in more than 60 days
are valued at the mean of the last bid and asked prices. In the event that such
prices are not readily available, securities are valued at fair value as
determined in good faith by or under the direction of the Board of Trustees or
Board of Directors, as the case may be. Debt obligations, other than bonds, with
remaining maturities of 60 days or less are valued at amortized cost. Note: The
Boards have adopted 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.
111
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
(D) DISTRIBUTIONS -- Each of the Funds declares dividends from net
investment income. Dividends from the Money Market Funds and the Fixed Income
Funds (other than the Convertible Securities Fund) are declared daily and paid
monthly. Dividends from the Convertible Securities Fund, Equity Fund, Equity
Income Fund, Index Fund, and Balanced Fund are declared and paid quarterly.
Dividends from the Growth Fund, Small-Cap Opportunity Fund, Small-Cap Value
Fund, International Fund and the Emerging Markets Fund are declared and paid
annually. Each Fund's net realized capital gains, if any, are distributed at
least annually. Distributions to shareholders are recorded on the ex-dividend
dates.
The amounts of distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax regulations,
which may differ from those amounts determined under generally accepted
accounting principles. These book/tax differences are either temporary or
permanent in nature. To the extent these differences are permanent, they are
reclassified within the capital accounts to conform to their tax treatment in
the period in which the difference arises.
(E) FUTURES CONTRACTS -- The Funds may seek to hedge all or a portion of
their investments through the use of securities index and other financial
futures contracts. Upon entering into a futures contract, a Fund is required to
deposit an amount ("initial margin") equal to a certain percentage of the
contract value. Subsequent payments ("variation margin") are made or received by
the Fund each day, reflecting the daily change in the value of the contracts and
are recorded as an unrealized gain or loss. When the contract is closed, the
Fund will recognize a realized gain or loss.
Futures contracts are subject to the risk associated with the imperfect
correlation between movements in the price of the futures contract and the price
of the securities being hedged. The risk of imperfect correlation increases with
respect to securities index futures as the composition of the Fund's portfolio
diverges from composition of the index underlying such index futures. In
addition, there is no assurance that a liquid secondary market will exist at the
time the Fund elects to close out a futures position.
(F) ORGANIZATION EXPENSES -- Each Fund's share of the costs incurred in
connection with the organization of the Trust has been deferred and is being
amortized over 60 months from commencement of operations of the respective Fund.
(G) ALLOCATION OF EXPENSES -- Expenses which have not been directly charged
to a specific Fund are generally allocated among the Funds primarily on the
basis of relative net assets. Expenses relating to a particular class of shares
of a Fund are charged to that class. Non-class specific expenses of a Fund are
allocated 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.
112
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
(J) SECURITIES LENDING -- The non-Money Market Funds may participate in a
securities lending program with certain counterparties whereby the Funds loan
securities to an organization that provides collateral. The Funds continue to
own the loaned securities and the securities remain in the investment portfolio.
However, in the event of default or bankruptcy by the other party to the
agreement, realization 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 December 31, 1999, and income earned on
securities loaned for the year ended December 31, 1999, 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 .......................... $ 0 $ 0 $ 5,247
Bond Fund ........................................ 0 0 3,091
Intermediate Government Fund ..................... 0 0 934
Convertible Securities Fund ...................... 4,514,849 4,552,079 17,250
Equity Fund ...................................... 79,246,989 81,424,648 104,820
Equity Income Fund ............................... 18,099,361 18,714,200 9,949
Growth Fund ...................................... 38,866,934 40,078,032 22,190
Small-Cap Opportunity Fund ....................... 48,860,136 49,964,419 64,938
Small-Cap Value Fund ............................. 7,632,805 7,855,915 28,274
Index Fund ....................................... 92,102,773 93,884,069 59,879
Balanced Fund .................................... 2,400,679 2,467,303 5,576
<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 Company and the Trust retain Harris Trust and Savings Bank ("Harris
Trust") as investment adviser (the "Adviser") for each Fund, pursuant to an
advisory contract for each Fund. As Adviser, Harris Trust is entitled to receive
fees payable monthly, based upon the average daily net asset value of each Fund,
at the following annual rates:
<TABLE>
<CAPTION>
<S> <C>
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%
</TABLE>
113
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
Harris Trust may, at its discretion, voluntarily waive all or any portion
of its advisory fee for any Fund. For the year ended December 31, 1999, advisory
fees and waivers for certain Funds were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
------------ ---------- ------------
<S> <C> <C> <C>
Short/Intermediate Fund ............................. $2,297,876 $1,020,456 $1,277,420
Bond Fund ........................................... 1,194,357 522,321 672,036
Intermediate Government Fund ........................ 669,469 427,300 242,169
Intermediate Tax-Exempt Fund ........................ 1,236,094 249,836 986,258
Tax-Exempt Fund ..................................... 953,658 199,578 754,080
Convertible Securities Fund ......................... 335,222 41,036 294,186
Equity Income Fund .................................. 518,808 35,232 483,576
Growth Fund ......................................... 1,530,500 51,635 1,478,865
Small-Cap Opportunity Fund .......................... 3,288,396 24,702 3,263,694
Small-Cap Value Fund ................................ 1,029,786 60,276 969,510
Index Fund .......................................... 1,166,714 24,950 1,141,764
Balanced Fund ....................................... 287,180 73,333 213,847
Emerging Markets Fund ............................... 334,341 5,145 329,196
</TABLE>
There were no advisory fee waivers for the other Funds.
Harris Trust has entered into Portfolio Management Agreements with Harris
Investment Management, Inc. ("HIM"or the "Portfolio Management Agent") under
which HIM undertakes to furnish investment guidance and policy direction in
connection with the daily portfolio management of the Funds, other than the
Tax-Exempt Money Fund. HIM receives a fee directly from Harris Trust, not from
the Funds. HIM and Harris Trust are subsidiaries of Harris Bankcorp, Inc.
HIM has entered into Investment Sub-Advisory Agreements with Hansberger
Global Investors, Inc. ("Hansberger") with respect to the International Fund and
the Emerging Markets Fund. Pursuant to those agreements, Hansberger selects and
manages the securities in which those Funds invest. Hansberger, as Sub-Adviser,
receives a fee directly from HIM and not from the Funds.
The Company and the Trust have Administration Agreements with Harris Trust
(the "Administrator"). In its capacity as the Administrator, Harris Trust
generally assists the Funds in all aspects of their administration and
operation. The Administrator has entered into Sub-Administration and Accounting
Services Agreements with PFPC Inc. ("PFPC" or the "Sub-Administrator and
Accounting Services Agent"), pursuant to which the Sub-Administrator and
Accounting Services Agent performs certain administrative services for the
Funds. Under these Agreements, the Administrator compensates the
Sub-Administrator and Accounting Services Agent for providing such services.
Harris Trust also serves as the transfer and dividend disbursing agent of the
Funds (the "Transfer Agent"). Harris Trust has entered into a Sub-Transfer
Agency Services Agreement with PFPC (the "Sub-Transfer Agent"), pursuant to
which the Sub-Transfer Agent performs certain transfer agency and dividend
disbursing agency services. Harris Trust compensates the Sub-Transfer Agent for
providing such services. PFPC Trust Co. (the "Custodian") serves as the
Custodian of the assets of the Funds. As compensation for their services, Harris
Trust, in its capacity as the Administrator and Transfer Agent, and the
Custodian are entitled to receive a combined fee based on the aggregate average
daily net assets of the Funds, payable monthly at an annual rate of 0.17% of the
first $300 million of average daily net assets; 0.15% of the next $300 million;
and 0.13% of the average net assets in excess of $600 million. For the year
ended December 31, 1999, the Administrator waived fees of $243,499 for the
Government Money Fund and $1,267,814 for the Money Fund.
114
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
Provident Distributors, Inc. ("PDI" or the "Distributor") provides services
as distributor in connection with sales of shares of the Funds. No compensation
is payable to PDI for its distribution services. Fees for services rendered by
the Distributor were paid by the Administrator. For the year ended December 31,
1999, the aggregate sales charges paid with respect to A shares of the Funds
were $85,722, of which $8,003 was retained and $77,719 was reallowed to dealer
firms. Sales charges retained and reallowed are as follows:
RETAINED REALLOWED
------------ ------------
Short/Intermediate Fund ........... $ 403 $ 3,218
Bond Fund ......................... 115 1,320
Intermediate Government Fund ...... 624 5,853
Equity Fund ....................... 847 8,352
Equity Income Fund ................ 1,870 19,093
Growth Fund ....................... 3,563 34,487
Small-Cap Opportunity Fund ........ 141 1,210
Small-Cap Value Fund .............. 5 50
Balanced Fund ..................... 386 3,659
International Fund ................ 25 251
Emerging Markets Fund ............. 24 226
The Company has a compensation arrangement under which payment of
directors' fees may be deferred by a director. Interest is accrued on the
deferred balances and is included in directors' fees and expenses. On December
31, 1999, the accumulated balance of deferred directors' fees and interest
thereon relating to all Funds comprising the Company was approximately $217,700,
a portion of which is included in accrued expenses of each applicable Fund.
Certain employees of PFPC Inc. are officers of the Funds. During the year
ended December 31, 1999, PFPC received $5,359,060 in aggregate fees and expenses
(net of waivers of $211,094) from the Administrator for services rendered under
various agreements described above.
4. SERVICE PLANS
The Company and the Trust have adopted a Service Plan (the "Plan") for the
N shares of each Fund. Under the Plan, each Fund may pay banks and other
institutions ("Service Organizations") for shareholder support services that
they provide, at a rate of up to 0.25% (on an annualized basis) of the average
daily net asset value of the Fund's N shares.
Under a separate Service Plan adopted by the 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 provided for distribution/service
fees of up to 0.35% (on an annualized basis) of the average daily net assets
attributable to A shares through September 30, 1999. Effective October 1, 1999,
the distribution/service fees were changed to 0.25% (on an annualized basis).
115
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
For the year ended December 31, 1999, the non-Money Market Funds paid the
following shareholder service fees pursuant to the Plan, including fees paid to
Harris Trust and to the Distributor:
Short/Intermediate Fund ........ $17,408
Bond Fund ...................... 8,646
Intermediate Government Fund ... 10,062
Intermediate Tax-Exempt Fund ... 6,210
Tax-Exempt Fund ................ 3,108
Convertible Securities Fund .... 964
Equity Fund .................... 61,972
Equity Income Fund ............. 11,989
Growth Fund .................... 19,109
Small-Cap Opportunity Fund ..... 12,038
Small-Cap Value Fund ........... 1,580
Index Fund ..................... 48,245
Balanced Fund .................. 6,284
International Fund ............. 5,917
Emerging Markets Fund .......... 404
For the year ended December 31, 1999, shareholder service fees paid by the
Money Market Funds under the Plan were $706,776, $2,359,645, and $565,358 and
fees paid under the 12b-1 Plan were $282,710, $943,858, and $151,051 (net of
voluntary waivers of $0, $0, and $79,145) for the N shares of the Government
Money Fund, Money Fund, and Tax-Exempt Money Fund, respectively.
For the year ended December 31, 1999, the following funds have paid fees
under the 12b-1 Plan for A shares. The fees are as follows:
Short Intermediate Fund ........ $ 154
Bond Fund ...................... 43
Intermediate Government Fund ... 345
Equity Fund .................... 253
Equity Income Fund ............. 600
Growth Fund .................... 1,129
Small-Cap Opportunity Fund ..... 39
Small-Cap Value Fund ........... 8
Balanced Fund .................. 187
International Fund ............. 7
Emerging Markets Fund .......... 4
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 December 31, 1999 and the net realized gains and
losses on securities sold for the period then ended for each of the Funds for
federal income tax purposes was not materially different from the amounts
reported for financial reporting purposes.
116
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
Purchases and sales of investment securities of the non-Money Market Funds
(excluding short-term investments and U.S. government securities) during the
year ended December 31, 1999 were as follows:
PURCHASES SALES
------------ -------------
Short/Intermediate Fund ........... $121,546,984 $115,874,786
Bond Fund ......................... 79,982,239 70,833,219
Intermediate Government Fund ...... 8,383,529 5,723,202
Intermediate Tax-Exempt Fund ...... 386,927,484 421,508,654
Tax-Exempt Fund ................... 354,434,785 387,093,505
Convertible Securities Fund ....... 9,390,660 17,482,424
Equity Fund ....................... 483,059,534 721,490,456
Equity Income Fund ................ 26,838,381 12,887,061
Growth Fund ....................... 69,514,824 58,423,968
Small-Cap Opportunity Fund ........ 203,376,788 191,773,585
Small-Cap Value Fund .............. 87,874,178 106,082,994
Index Fund ........................ 101,501,764 11,017,255
Balanced Fund ..................... 32,035,638 60,463,777
International Fund ................ 120,149,612 107,103,932
Emerging Markets Fund ............. 16,675,679 13,596,205
Purchases and sales of U.S. government securities, excluding short-term
securities, of the non-Money Market Funds during the year ended December 31,
1999 were as follows:
PURCHASES SALES
------------ -------------
Short/Intermediate Fund ........... $103,267,726 $143,097,439
Bond Fund ......................... 83,199,881 91,968,323
Intermediate Government Fund ...... 75,012,297 71,169,963
Balanced Fund ..................... 9,369,612 13,260,489
At December 31, 1999, 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 ........... $ 132,804 $(11,031,504) $ (10,898,700)
Bond Fund ......................... 152,913 (7,042,464) (6,889,551)
Intermediate Government Fund ...... 241,713 (3,682,047) (3,440,334)
Intermediate Tax-Exempt Fund ...... 883,662 (1,352,777) (469,115)
Tax-Exempt Fund ................... 854,697 (1,243,783) (389,086)
Convertible Securities Fund ....... 17,469,822 (5,162,816) 12,307,006
Equity Fund ....................... 114,122,149 (21,565,268) 92,556,881
Equity Income Fund ................ 28,268,364 (2,011,814) 26,256,550
Growth Fund ....................... 82,910,129 (3,349,946) 79,560,183
Small-Cap Opportunity Fund ........ 171,997,502 (9,274,190) 162,723,312
Small-Cap Value Fund .............. 17,943,491 (14,020,347) 3,923,144
Index Fund ........................ 255,480,578 (13,414,788) 242,065,790
Balanced Fund ..................... 2,186,981 (1,052,902) 1,134,079
International Fund ................ 56,607,441 (27,680,983) 28,926,458
Emerging Markets Fund ............. 12,944,928 (1,790,357) 11,154,571
</TABLE>
117
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
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)
7. COMPOSITION OF NET ASSETS
At December 31, 1999, net assets of each Fund consisted of:
<TABLE>
<CAPTION>
GOVERNMENT TAX-EXEMPT
MONEY FUND MONEY FUND MONEY FUND
------------ -------------- ------------
<S> <C> <C> <C>
Capital Stock at Par Value ..................... $ 500,255 $ 3,137,965 $ 756,128
Paid-in Capital ................................ 499,754,629 3,134,827,694 755,371,135
Undistributed Net Investment Income ............ -- -- --
Accumulated Net Realized Gain/(Loss) ........... (83,237) (14,571) (8,480)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ........... -- -- --
------------ -------------- ------------
Net Assets ..................................... $500,171,647 $3,137,951,088 $756,118,783
============ ============== ============
SHORT/ INTERMEDIATE
INTERMEDIATE GOVERNMENT
FUND BOND FUND FUND
------------ -------------- ------------
Capital Stock or Beneficial Interest at
Par Value ................................... $ 31,278 $ 17,075 $ 6,391
Paid-in Capital ................................ 320,265,153 173,068,860 104,052,101
Undistributed Net Investment Income ............ -- -- --
Accumulated Net Realized Gain/(Loss) ........... (3,756,222) (4,128,100) (1,156,972)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ........... (10,898,700) (6,889,551) (3,440,334)
------------ -------------- ------------
Net Assets ..................................... $305,641,509 $162,068,284 $ 99,461,186
============ ============== ============
</TABLE>
118
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
INTERMEDIATE CONVERTIBLE
TAX-EXEMPT TAX-EXEMPT SECURITIES EQUITY
FUND FUND FUND FUND
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest at
Par Value ................................ $ 17,662 $ 13,206 $ 1,718 $ 40,988
Paid-in Capital ............................. 184,473,286 131,105,841 40,831,339 480,732,980
Undistributed Net Investment Income ......... -- -- 16,966 10,980
Accumulated Net Realized Gain/(Loss) ........ (3,466,285) (3,594,081) (681,864) 26,258,418
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ........ (469,115) (389,086) 12,307,006 92,556,881
------------ ------------ ----------- ------------
Net Assets .................................. $180,555,548 $127,135,880 $52,475,165 $599,600,247
============ ============ =========== ============
EQUITY SMALL-CAP SMALL-CAP
INCOME GROWTH OPPORTUNITY VALUE
FUND FUND FUND FUND
----------- ------------ ------------ ------------
Capital Stock or Beneficial Interest at
Par Value ................................ $ 4,167 $ 6,550 $ 18,147 $ 3,840
Paid-in Capital ............................. 58,118,835 109,254,789 248,807,044 107,203,192
Undistributed Net Investment Income ......... 763 -- -- 9,250
Accumulated Net Realized Gain/(Loss) ........ 631,726 1,971,552 26,947,985 5,159,120
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ........ 26,256,550 79,560,183 162,723,312 3,923,144
----------- ------------ ------------ ------------
Net Assets .................................. $85,012,041 $190,793,074 $438,496,488 $116,298,546
=========== ============ ============ ============
EMERGING
INDEX BALANCED INTERNATIONAL MARKETS
FUND FUND FUND FUND
------------ ----------- ------------ -----------
Capital Stock or Beneficial Interest at
Par Value ................................ $ 17,277 $ 1,960 $ 17,340 $ 3,993
Paid-in Capital ............................. 330,630,557 23,667,559 247,742,066 34,005,644
Undistributed Net Investment Income ......... 403 7,618 4,723 (14,414)
Accumulated Net Realized Gain/(Loss) ........ 1,037,772 (544,969) (1,268,678) (6,667,774)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Futures Contracts
and Foreign Currency Transactions ........ 242,065,790 1,134,079 28,926,458 11,154,571
------------ ----------- ------------ -----------
Net Assets .................................. $573,751,799 $24,266,247 $275,421,909 $38,482,020
============ =========== ============ ===========
</TABLE>
119
<PAGE>
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
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 and the Company, 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 December 31, 1999 and during the year ended December
31, 1999, none of the Funds had borrowings under the Credit Facility.
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.
120
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS, BOARD OF DIRECTORS AND BOARD OF TRUSTEES OF
HARRIS INSIGHT FUNDS
HARRIS INSIGHT FUNDS TRUST
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and statements of net assets and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Harris Insight Equity Fund, Harris Insight Short/Intermediate Bond Fund, Harris
Insight Government Money Market Fund, Harris Insight Money Market Fund and
Harris Insight Tax-Exempt Money Market Fund (comprising Harris Insight Funds)
and Harris Insight Equity Income Fund, Harris Insight Growth Fund, Harris
Insight Small-Cap Opportunity Fund, Harris Insight Small-Cap Value Fund, Harris
Insight Index Fund, Harris Insight International Fund, Harris Insight Balanced
Fund, Harris Insight Emerging Markets Fund, Harris Insight Convertible
Securities Fund, Harris Insight Bond Fund, Harris Insight Intermediate
Government Bond Fund, Harris Insight Intermediate Tax-Exempt Bond Fund and
Harris Insight Tax-Exempt Bond Fund (comprising Harris Insight Funds Trust)
(hereafter referred to collectively as the "Funds") at December 31, 1999, the
results of each of their operations for the year then ended, the changes in each
of their net assets for each of the two years in the period then ended and the
financial highlights for each of the periods presented, in conformity with
accounting principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1999 by correspondence with custodians, provide a reasonable basis
for the opinion expressed above.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 4, 2000
121
<PAGE>
RESULTS OF SPECIAL MEETINGS OF SHAREHOLDERS
(UNAUDITED)
Special meetings of the shareholders of the Corporation and the Trust were
held concurrently on Monday, November 29, 1999 at which meetings at least
59.624% of the shares of each Fund of the Corporation and 82.331% of the shares
of each Fund of the Trust entitled to vote were present.
CORPORATION
At the meeting of shareholders of the Corporation, at least 98.4% of the
shares of each Fund of the Corporation present by proxy voted to approve a
reorganization of the respective Fund into a newly created portfolio of the
Trust.
TRUST
At the meeting of shareholders of the Trust:
1. Edgar R. Fiedler, C. Gary Gerst, Valerie B. Jarrett, John W. McCarter,
Jr., Ernest M. Roth and Paula Wolff were elected as the Board of
Trustees (effective January 1, 2000) by the affirmative vote of the
holders of at least 99.974% of the shares of each Fund of the Trust
represented at the meeting, with not more than 0.026% of the shares of
any Fund voting against the proposal and no shares of any Fund
represented at the meeting not voting for one or more of the candidates;
2. At least 99.899% of the shares of each Fund of the Trust represented at
the meeting voted to approve the ratification of the selection of
PricewaterhouseCoopers LLP as the Fund's independent public accountants,
with not more than 0.101% of the shares of any Fund voting against the
proposal and no shares of any Fund represented at the meeting not voting
on the proposal;
3. At least 98.379% of the shares of each Fund of the Trust represented at
the meeting voted to approve certain changes to each Fund's fundamental
investment restrictions, with not more than 0.101% of the shares of any
Fund voting against the proposal and not more than 1.621% of the shares
of any Fund represented at the meeting not voting on the proposal;
4. At least 98.379% of the shares of each Fund of the Trust represented at
the meeting voted to approve a change to each Fund's fundamental
investment restrictions that would permit each Fund to invest
substantially all of its assets in another open-end investment company
having the same investment objective, policies and restrictions, in what
is known as a master fund/feeder fund arrangement, with not more than
0.550% of the shares of any Fund voting against the proposal and not
more than 1.621% of the shares of any Fund represented at the meeting
not voting on the proposal;
5. At least 98.379% of the shares of each Fund of the Trust represented at
themeeting voted to approve a new investment advisory contract with
Harris, with not more than 0.001% of the shares of any Fund voting
against the proposal and not more than 1.621% of the shares of any Fund
represented at the meeting not voting on the proposal;
6. At least 98.379% of the shares of each Fund of the Trust present by
proxy voted to approve a new portfolio management contract between
Harris and Harris Investment Management, Inc., with not more than 0.001%
of the shares of any Fund voting against the proposal and not more than
1.621% of the shares of any Fund represented at the meeting not voting
on the proposal;
7. At least 98.379% of the shares of each Fund of the Trust represented at
the meeting voted to approve a proposal to permit Harris, subject to the
approval of the Trust's Board of Trustees, to enter into or amend
sub-advisory agreements with sub-advisers for each Fund without
obtaining shareholder approval, with not more than 0.102% of the shares
of any Fund voting against the proposal and not more than 1.621% of the
shares of any Fund represented at the meeting not voting on the
proposal; and
8. At least 98.379% of the shares of each Fund of the Trust represented at
the meeting voted to approve an amendment to the Trust's Declaration of
Trust to provide for dollar-based voting rights for shareholders, with
not more than 0.101% of the shares of any Fund voting against the
proposal and not more than 1.621% of the shares of any Fund represented
at the meeting not voting on the proposal.
If you would like to receive a complete report of the voting results of the
meetings, please call 800-982-8782.
122
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
HARRIS INSIGHT(REGISTRATION MARK) FUNDS
FOUR FALLS CORPORATE CENTER, 6TH FLOOR
WEST CONSHOHOCKEN, PA 19428-2961
TELEPHONE: (800) 982-8782
INVESTMENT ADVISER, ADMINISTRATOR,
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
Harris Trust and Savings Bank
111 West Monroe Street
Chicago, Illinois 60603
PORTFOLIO MANAGEMENT AGENT
Harris Investment Management, Inc.
190 South LaSalle Street
Chicago, Illinois 60690
INVESTMENT SUB-ADVISER
Hansberger 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.
Four Falls Corporate Center, 6th Floor
West Conshohocken, Pennsylvania 19428
CUSTODIAN
PFPC Trust Co.
8800 Tinicum Boulevard
Philadelphia, Pennsylvania 19153
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
30 South 17th Street
Philadelphia, Pennsylvania 19103
LEGAL COUNSEL
Bell, Boyd & Lloyd
Three First National Plaza
70 West Madison Street
Chicago, Illinois 60602
BOARD OF DIRECTORS AND BOARD OF TRUSTEES
C. GARY GERST
Chairman of the Board of Directors and Board of Trustees;
Chairman Emeritus since 1993 and formerly Co-Chairman, Jones Lang LaSalle (real
estate investment management and consulting); and Board Member, Nonlinear
Dynamics, Inc. and Evanston Northwestern Healthcare.
EDGAR R. FIEDLER
Senior Fellow and Economic Counsellor, The Conference Board; and Board Member,
The Stanley Works, Scudder Institutional Funds, AARP Income Trust, Brazil Fund,
Emerging Mexico Fund, Scudder Pathway Series, Farmers Investment Trust, and
PEGCapital Management.
VALERIE B. JARRETT (Board member effective January 1, 2000)
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 (Chicago); Former Senior Vice President and Director, Booz-Allen
& Hamilton, Inc. (consulting firm); and Board Member, LaSalle Partners U.S. Real
Estate Fund, W.W. Grainger,Inc., A.M. Castle, Inc., and Pittway Corp.
ERNEST M. ROTH (retired as Board member December 31, 1999)
Consultant; Board Member, La Rabida Children's Hospital;
Chairman, La Rabida Children's Foundation; and Retired Senior Vice President and
Chief Financial Officer, Commonwealth Edison Company.
PAULA WOLFF
President, Governors State University; Chair, University of Chicago Hospitals;
and Board Member, Ariel Capital Management, Inc.
OFFICERS
PHILIP H. RINNANDER
President
JASON A. GREIM
Vice President
GARY M. GARDNER
Secretary
DAVID LEBISKY
Assistant Secretary
THOMAS J. RYAN
Treasurer and Chief Financial Officer
L. LINN SOLANO
Assistant Treasurer
<PAGE>
THIS REPORT IS SUBMITTED FOR THE GENERAL INFORMATION OF THE
SHAREHOLDERS OF THE HARRIS INSIGHT FUNDS. IT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS ACCOMPANIED OR
PRECEDED BY A PROSPECTUS OF THE HARRIS INSIGHT FUNDS.
PLEASE READ THE PROSPECTUS
CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
INVESTMENT ADVISER:
Harris Trust and Savings Bank
PORTFOLIO MANAGEMENT AGENT:
Harris Investment Management, Inc.
DISTRIBUTOR:
Provident Distributors, Inc.
HIF 1252 12/99
