PORTICO FUNDS
Annual Report
October 31, 1995
Institutional
Money Market Fund
NOTICE TO INVESTORS
- -Shares of Portico Funds:
- ARE NOT INSURED BY THE
FDIC, the US Government or any
other governmental agency;
- are not bank deposits or obligations
of or guaranteed by Firstar Bank, its parent company or its affiliates;
- are subject to investment risks,
including possible loss of principal; and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and
an independent third-party distributor.
- -Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
- -There can be no assurance that the money market fund will be able to maintain
a stable net asset value of $1.00 per share.
December 1995
Dear Shareowner:
INVESTMENT REVIEW
As fears of slow economic growth rose during the last six months, the Federal
Reserve Board did an "about face" and lowered short-term interest rates 25
basis points. Money market rates have reflected that drop, but still remain
attractive, yielding slightly less than two-, three-, and five-year Treasury
securities. Additionally, when adjusted for inflation, the "real" yields on
money market investments remain very attractive by historical standards.
Portico Institutional Money Market Fund is managed with quality and safety of
principal as our primary goals. All securities purchased by the Fund must meet
strict guidelines set by the SEC for presenting minimal credit risk as well as
our own high internal standards. Our credit research team closely monitors all
investments to ensure quality standards are met.
7-Day Yield<F1>
Period Ended October 31, 1995
Institutional Money Market Fund
Current 5.50%
Effective 5.65%
<F1>After fee waivers. Had fees not been waived, the current and effective
yields would have been 5.17% and 5.32%, respectively. Reflects past performance;
yields will vary. An investment in Portico Institutional Money Market Fund is
neither insured nor guaranteed by the U.S. Government nor is there any assurance
the Fund will be able to maintain a stable net asset value of $1.00 per share.
Current yield refers to income earned by a fund's investments over a 7-day
period. It is then annualized and stated as a percentage of the investment.
Effective yield is the same as current yield except that it assumes the income
earned by an investment in a fund will be reinvested.
Yield Comparisons<F2>
Average Donoghue's Institutional
Monthly Portico Institutional AverageTM/
Rates Money Market Fund All Taxable
- ---------- --------------------- ------------------------
1995
- --------
October 5.48% 5.42%
September 5.51 5.44
August 5.57 5.47
July 5.68 5.56
June 5.79 5.68
May 5.84 5.71
April 5.87 5.73
March 5.89 5.72
February 5.85 5.65
January 5.68 5.38
1994
- --------
December 5.39 5.24
November 4.97 4.85
We compare the Portico Institutional Money Market Fund to the IBC/Donoghue's
Institutional AverageTM/All Taxable, which is a composite of professionally
managed money market investment funds with similar objectives.
<F2>After fee waivers. Had fees not been waived, performance would have been
reduced. Reflects past performance; yields will vary. An investment in Portico
Institutional Money Market Fund is neither insured nor guaranteed by the U.S.
Government nor is there any assurance the Fund will be able to maintain a stable
net asset value of $1.00 per share.
LOOKING AHEAD - THE FORECAST
Inflation appears to be under control which has allowed the Federal Reserve
Board to cut short-term interest rates. As inflation remains in check, we expect
short-term interest rates to decline further over the next six months and
anticipate at least maintaining an average maturity in Portico Institutional
Money Market Fund comparable to the industry benchmark.
As always, we pride ourselves on meeting three important objectives for our
money market shareowners: preservation of principal, liquidity and competitive
investment income. We believe these principles, combined with a disciplined
approach to quality, continue to be appropriate for our money market investors.
Your continued confidence in Portico Institutional Money Market Fund is
important to us and we look forward to working with you in the future.
Jane T. Keelan
Carl J. Smith
Portfolio Managers
Firstar Investment Research & Management Company
INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
(Amounts in thousands, except per share data)
October 31, 1995
ASSETS:
Investments, at amortized cost $719,652
Interest receivable 275
Other 3
--------
Total Assets 719,930
--------
LIABILITIES:
Dividends payable 3,139
Payable to affiliates 197
Accrued expenses 28
--------
Total Liabilities 3,364
--------
NET ASSETS $716,566
========
CAPITAL STOCK, $.0001 par value
Authorized 5,000,000
Issued and outstanding 716,566
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $1.00
=======
See notes to the financial statements.
INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
(Amounts in thousands)
Year Ended October 31, 1995
INVESTMENT INCOME:
Interest income $42,483
--------
EXPENSES:
Investment advisory fees 3,552
Administration fees 864
Service organization fees 271
Custody fees 170
Federal and state registration fees 42
Shareowner servicing and
accounting costs 63
Professional fees 27
Reports to shareowners 13
Amortization of organization costs 4
Directors' fees and expenses 5
Other 32
--------
Total expenses before waiver 5,043
Less: Waiver of expenses (2,530)
--------
Net Expenses 2,513
--------
NET INVESTMENT INCOME $39,970
========
STATEMENT OF CHANGES IN NET ASSETS
(Amounts in thousands)
Year Ended October 31,
----------------------
1995 1994
---- ----
OPERATIONS:
Net investment income $ 39,970 $ 24,254
---------- ----------
Increase in net assets resulting
from operations 39,970 24,254
---------- ----------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 2,916,794 1,760,075
Shares issued to owners in
reinvestment of dividends 4,010 1,226
---------- ----------
2,920,804 1,761,301
Shares redeemed (2,958,874) (1,594,966)
---------- ----------
Net increase (decrease) (38,070) 166,335
---------- ----------
DIVIDENDS PAID FROM:
Net investment income (39,970) (24,254)
---------- ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS (38,070) 166,335
NET ASSETS:
Beginning of year 754,636 588,301
---------- ----------
End of year $ 716,566 $ 754,636
========== ==========
See notes to the financial statements.
INSTITUTIONAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
April 26,
1991<F3>
Year ended Oct.31, through
----------------------------------- Oct.31,
1995 1994 1993 1992<F4> 1991
---- ---- ---- -------- ----
Per Share Data:
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment income 0.06 0.04 0.03 0.04 0.03
------- ------- ------- ------- -------
Total from investment
operations 0.06 0.04 0.03 0.04 0.03
------- ------- ------- ------- -------
Less distributions:
Dividends from net
investment income (0.06) (0.04) (0.03) (0.04) (0.03)
------- ------- ------- ------- -------
Total distributions (0.06) (0.04) (0.03) (0.04) (0.03)
------- ------- ------- ------- -------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
======= ======= ======= ======= =======
Total Return<F5> 5.77% 3.65% 2.92% 3.88% 2.87%
Supplemental data and ratios:
Net assets, in thousands,
end of period $716,566 $754,636 $588,301 $696,132 $189,048
Ratio of net expenses to
average net assets<F6> 0.35% 0.37% 0.38% 0.41% 0.50%
Ratio of net investment income
to average net assets<F6> 5.63% 3.64% 2.87% 3.75% 5.47%
<F3>Commencement of operations.
<F4>Effective February 3, 1992, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F5>Not annualized for the period ended October 31, 1991.
<F6>Annualized for the period ended October 31, 1991.
See notes to the financial statements.
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- --------------
COMMERCIAL PAPER 90.2%
Asset Backed 10.4%
Ciesco L.P.,
$15,000 5.67%, 11/09/95 $14,981
15,000 5.68%, 11/22/95 14,950
Corporate Asset Funding Co., Inc.,
15,000 5.68%, 11/21/95 14,953
15,000 5.69%, 1/09/96 14,836
15,000 New Center Asset Trust,
5.75%, 11/29/95 14,933
------
74,653
------
Auto & Truck 3.7%
Ford Credit Europe PLC,
15,000 5.71%, 1/08/96 14,838
12,000 5.69%, 1/25/96 11,839
------
26,677
------
Basic Industry 2.1%
15,000 U.S. Borax & Chemical Corp.,
5.70%, 1/16/96 14,820
------
Conglomerates 7.2%
Mitsubishi International Corp.,
14,000 5.74%, 11/01/95 14,000
8,000 5.85%, 1/04/96 7,917
Sumitomo Corporation of America,
15,000 5.75%, 11/16/95 14,964
15,000 5.80%, 1/29/96 14,785
------
51,666
------
Consumer Staples 1.4%
10,000 Hitachi America, Ltd.,
5.68%, 11/20/95 9,970
------
Drugs 9.3%
Colgate-Palmolive Company,
15,000 5.67%, 11/13/95 14,972
12,000 5.71%, 12/11/95 11,924
10,000 Lilly (Eli) & Co.,
6.37%, 11/07/95 9,989
Sandoz Corporation,
15,000 5.65%, 11/03/95 14,995
15,000 5.68%, 11/15/95 14,967
------
66,847
------
Electronics 2.1%
15,000 Panasonic Finance,
5.70%, 12/29/95 14,862
------
Energy 3.2%
Arco Coal Australia Inc.,
12,624 5.66%, 12/07/95 12,552
10,550 5.66%, 12/08/95 10,489
------
23,041
------
Finance 21.1%
American Express Credit Corporation,
15,000 5.63%, 11/02/95 14,998
13,000 5.70%, 11/13/95 12,975
15,000 CIT Group Holdings, Inc.,
5.66%, 12/21/95 14,882
13,000 General Electric Capital Corporation,
5.67%, 12/15/95 12,910
13,000 Hanson Finance (U.K.) PLC,
5.62%, 1/12/96 12,854
Heller Financial, Inc.,
13,000 5.69%, 11/28/95 12,945
15,000 5.70%, 1/19/96 14,812
13,000 Household Finance Corporation,
5.70%, 1/16/96 12,844
10,000 National Rural Utilities C.F.C.,
5.80%, 11/01/95 10,000
Paccar Financial Company,
10,000 5.62%, 12/15/95 9,931
9,000 5.60%, 12/19/95 8,933
13,000 Swedish Export Credit Corporation,
5.67%, 12/05/95 12,930
-------
151,014
-------
Finance - Services 10.1%
Goldman Sachs Group, L.P.,
15,000 5.70%, 1/10/96 14,834
15,000 5.73%, 1/11/96 14,830
13,000 Merrill Lynch & Co., Inc.,
5.68%, 11/27/95 12,947
Morgan Stanley Group, Inc.,
15,000 5.70%, 1/18/96 14,815
15,000 5.72%, 1/23/96 14,802
------
72,228
------
Food 1.4%
10,000 CPC International, Inc.,
5.70%, 1/22/96 9,870
------
Insurance 8.0%
12,900 American Family Financial Services, Inc.,
5.74%, 12/13/95 12,814
ITT Hartford Group, Inc.,
14,000 5.77%, 11/06/95 13,989
7,562 5.73%, 12/06/95 7,520
8,500 John Hancock Capital Corp.,
5.72%, 12/28/95 8,423
15,000 Prudential Funding Corp.,
5.62%, 12/28/95 14,866
------
57,612
------
Miscellaneous 1.4%
10,000 International Lease Finance Corp.,
5.68%, 11/10/95 9,986
------
Sovereign 4.7%
Quebec Province of Canada,
14,000 5.71%, 1/30/96 13,800
12,000 5.60%, 2/29/96 11,776
8,000 Wool International,
5.69%, 12/01/95 7,962
------
33,538
------
Technology 2.0%
15,000 Xerox Corporation,
5.70%, 1/17/96 14,817
------
Utilities 2.1%
15,000 AT & T Capital Corp.,
5.64%, 11/17/95 14,962
------
Total Commercial Paper 646,563
-------
VARIABLE RATE DEMAND NOTES 2.8%
20,000 WPL Holdings Demand Note 20,000
------
Total Variable Rate Demand Notes 20,000
------
Number
of Shares
(in thousands)
- --------------
INVESTMENT COMPANIES 7.4%
18,797 Financial Square Prime Obligation Fund 18,797
34,292 Short-Term Investments Co.
Liquid Assets Portfolio 34,292
------
Total Investment Companies 53,089
------
Total Investments 100.4% 719,652
-------
Liabilities, less Other Assets (0.4)% (3,086)
-------
NET ASSETS 100.0% $716,566
========
See notes to the financial statements.
INSTITUTIONAL MONEY MARKET FUND
Notes to the Financial Statements
1. ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988, as
a Wisconsin Corporation and is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended. The Institutional
Money Market Fund (the "Fund") which commenced operations on April 26, 1991,
is a separate, diversified investment portfolio of the Company.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in preparation of its financial statements. These policies
are in conformity with generally accepted accounting principles.
a) Investment Valuation - The securities are valued on the
basis of amortized cost for financial reporting purposes and federal income tax
purposes, which approximates market
value. Variable rate demand notes are valued at cost which approximates market
value.
b) Federal Income Taxes - No provision for federal income taxes has been made
since the Fund has complied with the provisions of the Internal Revenue Code
available to regulated investment companies and intends to continue to so comply
in future years.
c) Expenses - The Fund is charged for those expenses that are directly
attributable to it, such as advisory, administration, service organization fees
and certain shareowner service fees. Expenses that are not directly attributable
to a portfolio are typically allocated among the Company's portfolios in
proportion to their respective net assets, number of shareowner accounts or net
sales, where applicable.
d) Distributions to Shareowners - Dividends from net investment income are
declared daily and paid monthly. Distributions of net realized capital gains, if
any, will be declared at least annually.
e) Other - The Fund recognizes interest income on the accrual basis. Discounts
and premiums are amortized over the life of the respective security. Investment
and shareowner transactions are recorded no later than the first business day
after the trade date. Realized gains and losses from investment transactions are
reported on an identified cost basis which is the same basis the Fund uses for
federal income tax purposes. Transactions in capital shares at $1.00 per share
are shown in the Statement of Changes in Net Assets. Generally accepted
accounting principles require that permanent financial reporting and tax
differences be reclassified to capital stock.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Fund has entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Fund, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual rate of 0.50% of the Fund's
first $2 billion of average daily net assets, and 0.40% of the Fund's average
daily net assets in excess of $2 billion. For the year ended October 31, 1995,
FIRMCO voluntarily waived $1,882 of its advisory fees, in thousands, for the
Fund.
Firstar Trust Company, an affiliate of FIRMCO, serves as custodian, transfer
agent and accounting services agent for the Fund.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, computed daily and
payable monthly, at the annual rate of 0.125% of the Company's first $2 billion
of average aggregate daily net assets, plus 0.10% of the Company's average
aggregate daily net assets in excess of $2 billion. For the year ended October
31, 1995, $648 of administration fees, in thousands, were voluntarily waived for
the Fund.
Prior to January 1, 1995, the Fund had entered into Servicing Agreements with
certain Service Organizations, including affiliates of FIRMCO. The Service
Organizations were entitled to receive fees from the Fund up to an annual rate
of 0.25% of the daily net assets of the Fund for certain support and/or
distribution services to customers of the Service Organizations who were
beneficial owners of Fund shares. Service Organization fees, in thousands, paid
by the Fund to affiliates of FIRMCO aggregated $293 for the year ended October
31, 1995. The Servicing Agreements were terminated effective January 1, 1995.
Each Director of the Company who is not affiliated with FIRMCO receives an
annual fee from the Company for service as a Director and is eligible to
participate in a deferred compensation plan with respect to these fees.
Participants in the plan may designate their deferred Director's fees as if
invested in any one of the Portico Funds (with the exception of the MicroCap
Fund) or in 90-day U.S. Treasury bills. The value of each Director's deferred
compensation account will increase or decrease as if it were invested in shares
of the selected Portico Funds or 90-day U.S.Treasury bills. The Fund maintains
its proportionate share of the Company's liability for deferred fees.
Report of Independent Accountants
To the Board of Directors and Shareholders of the Portico Institutional Money
Market Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, 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 the Portico Institutional Money
Market Fund (one of the portfolios of Portico Funds, Inc. (the "Fund") at
October 31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended and
the financial highlights for each of the four years in the period then ended and
for the period April 26, 1991 (commencement of operations) through October 31,
1991, all in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's 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 generally accepted auditing standards 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 October
31, 1995 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above.
/s/ Price Waterhouse
Milwaukee, Wisconsin
November 29, 1995
- -Portico Funds are available through:
- the Portico Funds Center,
- Investment Specialists who are registered representatives of Elan Investment
Services, Inc., a registered broker/dealer, NASD and SIPC member,
- and through selected shareholder organizations.
This report is authorized for distribution only when preceded or accompanied by
a current prospectus.
To Open an Account or Request Information
1-800-982-8909
1-414-287-3710
For Account Balances and Investor Services
1-800-228-1024
1-414-287-3808
Portico Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI53201-3011
- ------------------------------------------------------------------------------
PORTICO FUNDS
Annual Report
October 31, 1995
Money Market Fund U.S. Treasury
Money Market Fund U.S. Government
Money Market Fund Tax-Exempt
Money Market Fund
NOTICE TO INVESTORS
- - Shares of Portico Funds:
- ARE NOT INSURED BY THE
FDIC, the US Government or any
other governmental agency;
- are not bank deposits or obligations
of or guaranteed by Firstar Bank, its parent company or its affiliates;
- are subject to investment risks,
including possible loss of principal; and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and
an independent third-party distributor.
- - Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
- - There can be no assurance that the money market funds will be able to maintain
a stable net asset value of $1.00 per share.
DECEMBER 1995
Dear Shareowner:
INVESTMENT REVIEW
As fears of slow economic growth rose during the last six months, the Federal
Reserve Board did an "about face" and lowered short-term interest rates 25
basis points. Money market rates have reflected that drop, but still remain
attractive, yielding slightly less than two-, three-, and five-year Treasury
securities. Additionally, when adjusted for inflation, the "real" yields on
money market investments remain very attractive by historical standards.
Portico money market funds are managed with quality and safety of principal as
our primary goals. All securities purchased by the Funds must meet strict
guidelines set by the SEC for presenting minimal credit risk, as well as our own
high internal standards. Our credit research team closely monitors all
investments to ensure quality standards are met.
PORTICO MONEY MARKET FUNDS 7-DAY YIELDS<F7>
PERIOD ENDED OCTOBER 31, 1995
MONEY MARKET FUND
CURRENT EFFECTIVE
5.23% 5.36%
U.S. TREASURY
MONEY MARKET FUND
CURRENT EFFECTIVE
4.89% 5.01%
U.S. GOVERNMENT
MONEY MARKET FUND
CURRENT EFFECTIVE
4.60% 4.70%
TAX-EXEMPT
MONEY MARKET FUND
CURRENT EFFECTIVE
3.40% 3.46%
<F7>After fee waivers. Had fees not been waived, current and effective yields
would have been 4.96% and 5.09% for the Money Market Fund; 4.65% and 4.77% for
the U.S. Treasury Money Market Fund; 4.46% and 4.56% for the U.S. Government
Money Market Fund; and 3.21% and 3.27% for the Tax-Exempt Money Market Fund,
respectively. Reflects past performance; yields will vary. An investment in any
one of the Portico money market funds is neither insured nor guaranteed by the
U.S. Government nor is there any assurance the Funds will be able to maintain a
stable net asset value of $1.00 per share.
Current yield refers to income earned by a fund's investments over a 7-day
period. It is then annualized and stated as a percentage of the investment.
Effective yield is the same as current yield except that it assumes the income
earned by an investment in a fund will be reinvested.
<TABLE>
PORTICO MONEY MARKET FUNDS YIELD COMPARISONS<F8>
AVERAGE
MONTHLY
RATES
<CAPTION>
Donoghue's
Portico Money Fund
Donoghue's Donoghue's Portico Donoghue's Tax-Exempt AverageTM/
Donoghue's Portico Money Portico Money Tax- Money Money All Tax-Free
Portico Money Fund U.S. Treasury Fund U.S. Gov't. Fund Exempt Fund Market Tax Tax
Money AverageTM/ Money AverageTM/ Money AverageTM/ Money AverageTM/ Equivalent Equivalent
Market All Taxable Market<F10> U.S. Treasury Market Gov't. Market All Tax-Free Yield<F9> Yield<F9>
------- ----------- ----------- ------------- ------ --------- ------ ------------ ---------- ----------
1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
October 5.21% 5.22% 4.89% 4.90% 4.90% 5.04% 3.32% 3.24% 5.19% 5.06%
September 5.25 5.25 4.97 4.96 5.12 5.08 3.35 3.28 5.23 5.13
August 5.31 5.27 5.04 5.02 5.23 5.09 3.30 3.22 5.16 5.03
July 5.42 5.36 5.22 5.08 5.31 5.18 3.19 3.10 4.98 4.84
June 5.53 5.48 5.29 5.18 5.42 5.32 3.41 3.32 5.33 5.19
May 5.58 5.51 5.32 5.24 5.50 5.34 3.83 3.74 5.98 5.84
April 5.62 5.53 5.39 5.25 5.51 5.35 3.52 3.59 5.50 5.61
March 5.66 5.52 5.29 5.24 5.54 5.34 3.43 3.36 5.36 5.25
February 5.62 5.44 5.11 5.09 5.50 5.24 3.44 3.36 5.38 5.25
January 5.45 5.19 4.89 4.85 5.31 4.95 3.12 3.05 4.88 4.77
1994
December 5.11 5.04 4.70 4.66 4.90 4.82 3.49 3.42 5.45 5.34
November 4.71 4.63 4.44 4.37 4.61 4.46 3.01 2.96 4.70 4.63
We compare our Funds to the IBC/Donoghue's Money Fund Averages, which are composites of professionally managed money market
investment funds with similar objectives.
<FN>
<F8>After fee waivers. Had fees not been waived, performance would be reduced. Reflects past performance; yields will vary. An
investment in any one of the Portico money market funds is neither insured nor guaranteed by the U.S. Government nor is there any
assurance the Funds will be able to maintain a stable net asset value of $1.00 per share.
<F9>Assumes a 36% tax bracket.
<F10>Effective January 1, 1995, the Fund's name was changed to the U.S. Treasury Money Market Fund.
</TABLE>
LOOKING AHEAD - THE FORECAST
Inflation appears to be under control which has allowed the Federal Reserve
Board to cut short-term interest rates. As inflation remains in check, we expect
short-term interest rates to decline further over the next six months and
anticipate at least maintaining an average maturity in the Portico money market
funds comparable to their industry benchmarks.
As always, we pride ourselves on meeting three important objectives for our
money market shareowners: PRESERVATION OF PRINCIPAL, LIQUIDITY and COMPETITIVE
INVESTMENT INCOME. We believe these principles, combined with a disciplined
approach to quality, continue to be appropriate for our money market investors.
Your continued confidence in the Portico money market funds is important to us
and we look forward to working with you in the future.
Jane T. Keelan
Carl J. Smith
Portfolio Managers
Firstar Investment Research & Management Company
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
OCTOBER 31, 1995 U.S. U.S.
TREASURY GOVERNMENT TAX-EXEMPT
MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND
----------- ----------- ----------- -----------
ASSETS:
Investments, at
amortized cost $173,033 $63,872 $163,056 $83,469
Interest receivable 80 1,082 769 654
Cash - - - 223
Other 9 4 9 3
------- ------ ------- -------
Total Assets 173,122 64,958 163,834 84,349
------- ------ ------- ------
LIABILITIES:
Dividends payable 723 258 659 211
Payable to affiliates 109 28 81 34
Accrued expenses and other
liabilities 29 17 26 20
------- ------- ------- -------
Total Liabilities 861 303 766 265
------- ------- ------- -------
NET ASSETS $172,261 $64,655 $163,068 $84,084
======== ======= ======== =======
CAPITAL STOCK, $.0001
par value
Authorized 5,000,000 5,000,000 5,000,000 5,000,000
Issued and outstanding 172,261 64,655 163,068 84,084
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $1.00 $1.00 $1.00 $1.00
======== ======= ======== =======
See notes to the financial statements.
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 1995 U.S. U.S.
TREASURY GOVERNMENT TAX-EXEMPT
MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND
----------- ----------- ----------- -----------
INVESTMENT INCOME:
Interest income $9,388 $3,348 $10,115 $2,779
------ ------ ------- ------
EXPENSES:
Investment advisory fees 788 297 866 351
Administration fees 191 72 208 83
Service organization fees 55 12 54 19
Custody fees 47 18 50 19
Shareowner servicing and
accounting costs 238 45 62 57
Professional fees 25 22 23 21
Reports to shareowners 48 9 12 9
Federal and state
registration fees 29 15 20 23
Directors' fees and expenses 3 4 4 5
Other 6 4 6 3
------ ------ ------- -------
Total expenses before waiver 1,430 498 1,305 590
Less: Waiver of expenses (485) (142) (266) (170)
------ ------ ------- -------
Net Expenses 945 356 1,039 420
------ ------ ------- -------
NET INVESTMENT INCOME $8,443 $2,992 $ 9,076 $2,359
====== ====== ======= ======
See notes to the financial statements.
STATEMENT OF CHANGES IN NET ASSETS, PART 1
(AMOUNTS IN THOUSANDS) U.S. TREASURY
MONEY MARKET FUND MONEY MARKET FUND
----------------- -----------------
Year ended October 31, Year ended October 31,
--------------------- ---------------------
1995 1994 1995 1994
---- ---- ---- ----
OPERATIONS:
Net investment income $ 8,443 $ 4,842 $ 2,992 $ 1,470
--------- --------- --------- ---------
Increase in net assets
resulting from
operations 8,443 4,842 2,992 1,470
--------- --------- --------- ---------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 601,835 626,248 205,921 137,603
Shares issued to
owners in reinvestment
of dividends 7,100 3,613 283 148
--------- --------- --------- ---------
608,935 629,861 206,204 137,751
Shares redeemed (601,692) (597,411) (197,569) (122,475)
--------- --------- --------- ---------
Net increase (decrease) 7,243 32,450 8,635 15,276
--------- --------- --------- ---------
DIVIDENDS PAID FROM:
Net investment income (8,443) (4,842) (2,992) (1,470)
--------- --------- --------- ---------
TOTAL INCREASE
(DECREASE) IN
NET ASSETS 7,243 32,450 8,635 15,276
NET ASSETS:
Beginning of year 165,018 132,568 56,020 40,744
------- ------- ------ ------
End of year $172,261 $165,018 $ 64,655 $ 56,020
======== ======== ======== ========
STATEMENT OF CHANGES IN NET ASSETS, PART 2
(AMOUNTS IN THOUSANDS)
U.S. GOVERNMENT TAX-EXEMPT
MONEY MARKET FUND MONEY MARKET FUND
--------------------- ---------------------
Year ended October 31, Year ended October 31,
1995 1994 1995 1994
---- ---- ---- ----
OPERATIONS:
Net investment income $ 9,076 $ 6,375 $ 2,359 $ 1,724
-------- -------- -------- --------
Increase in net assets
resulting from
operations 9,076 6,375 2,359 1,724
-------- -------- -------- --------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 875,356 672,045 182,982 173,282
Shares issued to
owners in reinvestment
of dividends 2,649 1,425 884 676
--------- --------- -------- ---------
878,005 673,470 183,866 173,958
Shares redeemed (898,528) (693,044) (170,218) (177,143)
--------- --------- --------- ---------
Net increase (decrease) (20,523) (19,574) 13,648 (3,185)
--------- --------- --------- ---------
DIVIDENDS PAID FROM:
Net investment income (9,076) (6,375) (2,359) (1,724)
--------- --------- --------- ---------
TOTAL INCREASE
(DECREASE) IN
NET ASSETS (20,523) (19,574) 13,648 (3,185)
NET ASSETS:
Beginning of year 183,591 203,165 70,436 73,621
--------- --------- --------- ---------
End of year $163,068 $183,591 $ 84,084 $ 70,436
========= ========= ========= =========
See notes to the financial statements.
<TABLE>
FINANCIAL HIGHLIGHTS, PART 1
<CAPTION>
MONEY MARKET FUND
-------------------------------------------------------------------------------------------
March 16,
1988<F11>
Year ended October 31, through
Oct. 31,
1995 1994 1993 1992<F12> 1991 1990 1989 1988
---- ---- ---- -------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of
period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from
investment
operations:
Net investment
income<F13> 0.05 0.03 0.03 0.04 0.06 0.08 0.08 0.05
---- ---- ---- ---- ---- ---- ---- ----
Total from
investment
operations 0.05 0.03 0.03 0.04 0.06 0.08 0.08 0.05
---- ---- ---- ---- ---- ---- ---- ----
Less distributions:
Dividends from
net investment
income (0.05) (0.03) (0.03) (0.04) (0.06) (0.08) (0.08) (0.05)
------ ------ ------ ------ ------ ------ ------ ------
Total
distributions (0.05) (0.03) (0.03) (0.04) (0.06) (0.08) (0.08) (0.05)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== ===== ===== =====
Total Return<F14> 5.51% 3.42% 2.71% 3.73% 6.39% 8.14% 9.01% 4.63%
Supplemental data and ratios:
Net assets, in
thousands,
end of period $172,261 $165,018 $132,568 $146,012 $628,697 $762,170 $201,097 $100,373
Ratio of net
expenses to
average net
assets<F15> 0.60% 0.60% 0.60% 0.58% 0.50% 0.51% 0.60% 0.44%
Ratio of net
investment
income to
average
net assets<F15> 5.36% 3.44% 2.67% 3.84% 6.28% 7.81% 8.66% 7.35%
FINANCIAL HIGHLIGHTS, PART 2
U.S. TREASURY
MONEY MARKET FUND
-----------------------------------------------
April 29,
1991<F11>
Year ended October 31, through
---------------------- Oct. 31,
1995 1994 1993 1992<F12> 1991
---- ---- ---- -------- ----
Per Share Data:
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment income<F13> 0.05 0.03 0.03 0.04 0.03
---- ---- ---- ---- ----
Total from investment
operations 0.05 0.03 0.03 0.04 0.03
---- ---- ---- ---- ----
Less distributions:
Dividends from net
investment income (0.05) (0.03) (0.03) (0.04) (0.03)
------ ------ ------ ------ ------
Total distributions (0.05) (0.03) (0.03) (0.04) (0.03)
------ ------ ------ ------ ------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Total Return<F14> 5.16% 3.20% 2.59% 3.48% 2.69%
Supplemental data and ratios:
Net assets, in thousands,
end of period $64,655 $56,020 $40,744 $37,342 $36,267
Ratio of net expenses to
average net assets<F15> 0.60% 0.60% 0.60% 0.60% 0.52%
Ratio of net investment
income to average
net assets<F15> 5.04% 3.14% 2.55% 3.42% 5.23%
FINANCIAL HIGHLIGHTS, PART 3
U.S. GOVERNMENT
MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------
Aug. 1,1988<F11>
Year ended October 31, through
----------------------
Oct. 31,
1995 1994 1993 1992<F12> 1991 1990 1989 1988
---- ---- ---- -------- ---- ---- ---- ----
Per Share Data:
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment income<F13> 0.05 0.03 0.03 0.04 0.06 0.08 0.08 0.02
---- ---- ---- ---- ---- ---- ---- ----
Total from investment
operations 0.05 0.03 0.03 0.04 0.06 0.08 0.08 0.02
---- ---- ---- ---- ---- ---- ---- ----
Less distributions:
Dividends from net
investment income (0.05) (0.03) (0.03) (0.04) (0.06) (0.08) (0.08) (0.02)
------ ------ ------ ------ ------ ------ ------ ------
Total distributions (0.05) (0.03) (0.03) (0.04) (0.06) (0.08) (0.08) (0.02)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== ===== ===== =====
Total Return<F14> 5.37% 3.35% 2.63% 3.60% 6.02% 7.84% 8.72% 1.91%
Supplemental data and ratios:
Net assets, in thousands,
end of period $163,068 $183,591 $203,165 $211,521 $237,752 $153,480 $101,497 $49,069
Ratio of net expenses to
average net assets<F15> 0.60% 0.60% 0.60% 0.60% 0.60% 0.60% 0.61% 0.50%
Ratio of net investment
income to average
net assets<F15> 5.24% 3.29% 2.59% 3.56% 5.80% 7.55% 8.43% 7.56%
FINANCIAL HIGHLIGHTS, PART 4
TAX-EXEMPT
MONEY MARKET FUND
---------------------------------------------------------------------------------------------
June 27,
1988<F11>
Year ended October 31, through
----------------------
1995 1994 1993 1992<F12> 1991 1990 1989 Oct. 31, 1988
---- ---- ---- -------- ---- ---- ---- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of
period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment
income<F13> 0.03 0.02 0.02 0.03 0.04 0.05 0.06 0.02
---- ---- ---- ---- ---- ---- ---- ----
Total from investment
operations 0.03 0.02 0.02 0.03 0.04 0.05 0.06 0.02
---- ---- ---- ---- ---- ---- ---- ----
Less distributions:
Dividends from net
investment
income (0.03) (0.02) (0.02) (0.03) (0.04) (0.05) (0.06) (0.02)
------ ------ ------ ------ ------ ------ ------ ------
Total
distributions (0.03) (0.02) (0.02) (0.03) (0.04) (0.05) (0.06) (0.02)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== ===== ===== =====
Total Return<F14> 3.42% 2.25% 2.17% 2.91% 4.49% 5.51% 5.99% 1.78%
Supplemental data and ratios:
Net assets, in thousands,
end of period $84,084 $70,436 $73,621 $74,343 $29,714 $16,424 $18,429 $10,838
Ratio of net
expenses to
average net
assets<F15> 0.60% 0.60% 0.60% 0.60% 0.63% 0.64% 0.60% 0.52%
Ratio of net investment
income to
average
net assets<F15> 3.36% 2.23% 2.12% 2.83% 4.34% 5.38% 5.82% 5.10%
<FN>
<F11> Commencement of operations.
<F12>Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F13> For the Tax-Exempt Money Market Fund, substantially all investment income is exempt from Federal income tax.
<F14> Not annualized for the period ended October 31, 1988, for the Money Market, U.S. Government Money Market and Tax-Exempt Money
Market Funds and for the period ended October 31, 1991, for the U.S. Treasury Money Market Fund.
<F15> Annualized for the period ended October 31, 1988, for the Money Market, U.S. Government Money Market and Tax-Exempt Money
Market Funds and for the period ended October 31, 1991, for the U.S. Treasury Money Market Fund.
See notes to the financial statement.
</TABLE>
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal Amortized
Amount Cost
(in thousands) (in thousands)
------------ ------------
COMMERICAL PAPER 89.4%
ASSET BACKED 2.0%
$3,500 Ciesco L.P.,
5.67%, 11/09/95 $ 3,496
-------
AUTOS & TRUCKS 4.6%
Ford Credit Europe PLC,
4,000 5.71%, 1/08/96 3,957
4,000 5.69%, 1/25/96 3,946
-----
7,903
-----
BANKING - FOREIGN 2.3%
4,000 Deutsche Bank Financial Inc.,
5.68%, 1/16/96 3,952
-----
BEVERAGES 2.0%
3,500 Brown-Forman Corporation,
5.62%, 12/18/95 3,474
-----
CONGLOMERATES 6.4%
Mitsubishi International Corp.,
3,500 5.73%, 11/10/95 3,495
3,500 5.76%, 1/24/96 3,453
4,000 Sumitomo Corporation of America,
5.80%, 1/29/96 3,943
-----
10,891
------
CONSUMER STAPLES 3.9%
2,656 Hitachi America, Ltd.,
5.65%, 1/12/96 2,626
4,000 Unilever Capital Corporation,
5.62%, 11/29/95 3,982
-----
6,608
-----
DRUGS 5.8%
3,500 Colgate-Palmolive Company,
5.68%, 12/11/95 3,478
Sandoz Corporation,
3,500 5.65%, 11/03/95 3,499
3,000 5.68%, 11/15/95 2,993
-----
9,970
-----
ELECTRONICS 2.0%
3,500 Panasonic Finance Inc.,
5.70%, 12/29/95 3,468
-----
ENERGY 4.0%
Arco Coal Australia Inc.,
3,500 5.66%, 12/07/95 3,480
3,500 5.66%, 12/13/95 3,477
-----
6,957
-----
EQUIPMENT - LEASING 2.0%
3,500 International Lease Finance Corp.,
5.70%, 11/20/95 3,489
-----
FINANCE 18.2%
American Express Co.,
3,000 5.63%, 11/02/95 3,000
3,000 5.60%, 11/07/95 2,997
4,000 General Electric Capital Corp.,
5.67%, 11/14/95 3,992
4,000 Hanson Finance (U.K.) PLC,
5.62%, 1/11/96 3,956
3,500 Heller Financial, Inc.,
5.69%, 11/28/95 3,485
3,500 Paccar Financial Company,
5.67%, 11/30/95 3,484
3,500 Swedish Export Credit Corp.,
5.68%, 11/22/95 3,488
Transamerica Finance Corp.,
3,500 5.71%, 11/17/95 3,491
3,500 5.71%, 11/21/95 3,489
-----
31,382
------
FINANCE - SERVICES 10.6%
4,000 Goldman Sachs Group, L.P.,
5.70%, 1/10/96 3,956
Merrill Lynch and Co., Inc.,
4,000 5.70%, 1/31/96 3,942
3,500 5.60%, 3/05/96 3,432
Morgan Stanley Group, Inc.,
3,000 5.60%, 12/19/95 2,978
4,000 5.60%, 12/20/95 3,970
-----
18,278
------
FOOD 2.3%
4,000 CPC International, Inc.,
5.69%, 2/05/96 3,939
-----
INSURANCE 8.7%
3,500 American General Corporation,
5.70%, 12/06/95 3,481
4,000 ITT Hartford Group, Inc.,
5.77%, 11/06/95 3,997
John Hancock Capital Corp.,
4,000 5.72%, 12/28/95 3,964
3,500 5.73%, 1/11/96 3,460
-----
14,902
------
METALS & MINING 2.0%
3,500 RTZ America Inc.,
5.62%, 12/15/95 3,476
-----
SOVEREIGN 6.3%
Quebec Province of Canada,
4,000 5.62%, 1/09/96 3,957
4,000 5.71%, 1/30/96 3,943
3,000 Wool International,
5.69%, 12/01/95 2,986
-----
10,886
------
TECHNOLOGY 4.0%
3,500 Pitney Bowes Credit Corporation,
5.62%, 12/12/95 3,477
3,500 Xerox Corporation,
5.65%, 12/04/95 3,482
-----
6,959
-----
UTILITIES 2.3%
4,000 AT&T Capital Corporation,
5.71%, 1/19/96 3,950
-----
Total Commercial Paper 153,980
-------
VARIABLE RATE DEMAND NOTES 4.6%
8,000 WPL Holdings Demand Note 8,000
-----
Total Variable Rate Demand Notes 8,000
-----
Number
of Shares
(in thousands)
------------
INVESTMENT COMPANIES 6.4%
2,442 Financial Square Prime
Obligation Fund 2,442
8,611 Short-Term Investments Co.
Liquid Assets Portfolio 8,611
-----
Total Investment Companies 11,053
------
Total Investments 100.4% 173,033
-------
Liabilities, less Other Assets (0.4)% (772)
-------
NET ASSETS 100.0% $172,261
=======
See notes to the financial statement.
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal Amortized
Amount Cost
(in thousands) (in thousands)
------------ -------------
U.S. TREASURIES 90.2%
U.S. TREASURY NOTES 68.7%
7,000 11.50%, 11/15/95 7,015
5,500 5.125%, 11/15/95 5,499
12,600 7.50%, 1/31/96 12,654
6,000 7.88%, 2/15/96 6,039
7,200 4.63%, 2/15/96 7,180
2,500 7.38%, 5/15/96 2,523
3,500 4.25%, 5/15/96 3,475
-------
44,385
-------
U.S. TREASURY BILLS 21.5%
4,000 5.14%, 11/30/95 3,983
5,000 5.32%, 12/14/95 4,968
5,000 5.34%, 1/04/96 4,953
------
13,904
------
Total U.S. Treasuries 58,289
------
Number
of Shares
(in thousands)
------------
INVESTMENT COMPANIES 8.6%
2,826 Institutional Liquid Assets
Treasury Instruments Portfolio 2,826
2,757 Short-Term Investments Co.
Treasury Tax Advantage Portfolio 2,757
-----
Total Investment Companies 5,583
-----
Total Investments 98.8% 63,872
------
Other Assets, less Liabilities 1.2% 783
------
NET ASSETS 100.0% $64,655
======
See notes to the financial statement.
U.S. GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal Amortized
Amount Cost
(in thousands) (in thousands)
------------ ------------
U.S. GOVERNMENT AGENCIES 93.4%
FEDERAL FARM CREDIT BANK 21.1%
Federal Farm Credit Bank Discount Notes:
5,000 5.55%, 11/01/95 5,000
6,000 5.59%, 11/15/95 5,987
5,000 5.59%, 11/21/95 4,984
3,615 5.56%, 12/01/95 3,598
5,000 5.59%, 12/04/95 4,974
5,000 5.57%, 12/14/95 4,967
5,000 5.46%, 1/23/96 4,937
------
34,447
------
FEDERAL HOME LOAN BANK 7.9%
Federal Home Loan Bank Discount Notes:
4,000 5.52%, 12/18/95 3,971
5,000 5.48%, 12/26/95 4,958
4,000 5.51%, 1/08/96 3,959
------
12,888
------
FEDERAL HOME LOAN MORTGAGE CORP. 16.5%
Federal Home Loan Mortgage Corp. Discount Notes:
4,000 5.59%, 11/06/95 3,997
4,000 5.62%, 11/17/95 3,990
4,000 5.60%, 11/20/95 3,988
5,000 5.58%, 12/07/95 4,972
3,000 5.58%, 12/08/95 2,983
4,000 5.59%, 1/09/96 3,957
3,000 5.58%, 1/17/96 2,964
------
26,851
------
FEDERAL NATIONAL MORTGAGE ASSN. 21.2%
Federal National Mortgage Assn. Discount Notes:
4,000 5.62%, 11/13/95 3,993
4,000 5.59%, 11/30/95 3,982
4,000 5.85%, 12/11/95 3,974
4,005 5.56%, 12/22/95 3,973
5,000 5.53%, 12/27/95 4,957
4,000 5.53%, 12/28/95 3,965
5,000 5.50%, 2/23/96 4,913
5,000 5.50%, 3/13/96 4,898
------
34,655
------
OTHER 2.4%
4,000 Tennessee Valley Authority Discount Note,
5.60%, 11/08/95 3,996
------
STUDENT LOAN MARKETING ASSN. 16.8%
Student Loan Marketing Assn. Floating Rate Notes:
5,000 5.60%, 7/19/96 5,001
13,500 5.66%, 12/20/96<F16> 13,497
3,810 5.80%, 10/30/97<F16> 3,813
5,000 5.80%, 11/20/97<F16> 5,005
------
27,316
------
GOVERNMENT BOND 7.5%
Government Trust Certificates, Class 2-D:
4,975 9.25%, 11/15/95 5,015
4,975 9.25%, 5/15/96 5,044
2,138 9.25%, 11/15/96 2,168
------
12,227
------
Total U.S. Government Agencies 152,380
-------
Number
of Shares
(in thousands)
------------
INVESTMENT COMPANIES 6.5%
4,535 Financial Square Government
Obligation Fund 4,535
6,141 Short-Term Investments Co.
Treasury Portfolio 6,141
------
Total Investment Companies 10,676
------
Total Investments 99.9% 163,056
-------
Other Assets, less Liabilities 0.1% 12
-------
NET ASSETS 100.0% $163,068
========
<F16>Stated maturity with weekly interest rate reset.
See notes to the financial statements.
TAX-EXEMPT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal Amortized
Amount Cost
(in thousands) (in thousands)
------------ ------------
GENERAL OBLIGATION 4.7%
930 Carson City, Nevada School District,
9.00%, 4/01/96 947
490 Fox Valley, Wisconsin, VTAE District,
5.20%, 6/01/96 493
1,000 Honolulu, Hawaii, City and County,
9.00%, 3/01/96 1,018
1,000 New Jersey State,
7.30%, 11/01/95 1,000
480 Northwestern Mutual Life,
4.50%, 2/15/09<F17><F19> 480
-----
Total General Obligation 3,938
-----
NOTES AND BONDS 6.3%
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL REVENUE 3.3%
2,000 Illinois Development Finance Authority,
Enterprise Office, 4.00%, 12/01/17<F17><F19> 2,000
800 Moffat County, Colorado, Pollution Control,
3.95%, 7/01/10<F17><F18> 800
-----
2,800
-----
MISCELLANEOUS 2.4%
2,000 Illinois State Revenue Anticipation Certificates,
4.50%, 5/10/96 2,008
-----
TRANSPORTATION REVENUE 0.6%
500 Maryland State Department of Transportation
and Construction, 5.70%, 9/01/96 507
-----
Total Notes and Bonds 5,315
-----
PREREFUNDED AND ESCROWED
TO MATURITY 12.9%
1,000 District of Columbia - Series A,
7.875%, 6/01/06, Prerefunded 6/01/96 1,043
1,100 Harris County, Texas - Hospital District,
8.50%, 4/01/15, Prerefunded 4/01/96 1,143
2,445 Kentucky Development Finance Authority -
Good Samaritan Hospital,
10.25%, 12/01/11, Prerefunded 12/01/95 2,505
2,085 Lowndes County, Mississippi - Hospital Revenue,
11.00%, 2/01/16, Prerefunded 2/01/96 2,179
665 Maine Municipal Bond Bank,
6.30%, 11/01/99, Prerefunded 11/01/96 686
1,000 Maricopa County, Arizona, State Transportation
Board - Regional Area Road Fund,
7.60%, 7/01/01, Prerefunded 7/01/96 1,046
2,155 Muskingum County, Ohio, Certificates -
Office Building Project, 9.20%,
6/01/10, Prerefunded 6/01/96 2,259
-----
Total Prerefunded and Escrowed to Maturity 10,861
------
REVENUE BONDS 62.3%
(DAILY/WEEKLY/MONTHLY PUT BONDS)
ELECTRIC REVENUE 6.2%
2,100 County of Mason, Kentucky, Series 1984B,
3.95%, 10/15/14<F17> 2,100
3,085 Putnam County, Florida Development
Authority - Seminole Electric,
3.95%, 3/15/14<F17> 3,085
-----
5,185
-----
HOSPITAL REVENUE 23.5%
2,000 Des Moines, Iowa, Methodist Medical
Center Project, 4.00%, 8/01/15<F17> 2,000
1,000 Illinois Health Facilities Authority,
4.00%, 1/01/16<F17> 1,000
1,000 Illinois Health Facilities Authority -
Evangelical Hospitals, 3.85%, 1/01/16<F17> 1,000
3,000 Indiana Health,
3.90%, 12/01/02<F17> 3,000
2,600 Jefferson Parish, Louisiana, Hospital,
3.90%, 12/01/15<F17> 2,600
2,300 Louisiana PFA Hospital Equipment,
4.30%, 12/01/05<F17> 2,300
1,845 Richland County, South Carolina, Orangeburg -
Calhoun Regional Hospital, 4.30%, 10/01/06<F17> 1,845
500 West Virginia State Hospital Finance
Authority - St. Joseph's Hospital Project,
4.15%, 10/01/10<F17> 500
2,000 Wisconsin State Health & Educational
Facilities - Blood Center, 3.95%, 6/01/19<F17> 2,000
3,500 Wisconsin State Health & Educational
Facilities - Marshfield Clinic, 3.90%,
6/01/10<F17> 3,500
------
19,745
------
HOUSING REVENUE 13.3%
2,000 Broward County, Florida, Housing Finance
Authority - Quiet Creek Apartments,
4.15%, 12/01/29<F17> 2,000
1,800 Dade County, Florida, Housing Finance
Authority - Nob Hill Project Series 1,
4.15%, 12/01/29<F17> 1,800
2,200 Fulton County, Georgia, Housing Authority,
4.30%, 8/01/16<F17>, called 11/01/95 2,200
1,625 Illinois Development Finance Authority -
St. Paul's House, 3.95%, 2/01/25<F17> 1,625
2,990 Industrial Development Authority of St. Louis,
4.15%, 2/01/07<F17> 2,990
555 Washington State Housing Finance -
Community Multifamily Mortgage,
4.05%, 10/01/20<F17> 555
------
11,170
------
INDUSTRIAL DEVELOPMENT/POLLUTION
CONTROL REVENUE 4.7%
1,350 Oakbrook Terrace, Illinois - Oakbrook
Terrace Atrium, 4.25%, 12/01/25<F17> 1,350
2,600 Oklahoma County, Oklahoma Finance
Authority - Perrine Office Project,
4.25%, 12/01/14<F17> 2,600
-----
3,950
-----
MISCELLANEOUS 1.8%
1,000 Glendale, California, Reliance Development
Public Parking, 3.90%, 12/01/14<F17> 1,000
510 Indianapolis, Indiana, Economic Development -
Jewish Federation Campus, 3.90%, 4/01/05<F17> 510
---
1,510
-----
POOLED GOVERNMENT AUTHORITY REVENUE 6.1%
3,100 Illinois Educational Facilities Authority,
4.00%, 12/01/25, Prerefunded 12/01/95<F17> 3,100
2,000 Indiana Hospital Equipment Financing
Authority, Series A, 3.90%, 12/01/15<F17> 2,000
-----
5,100
-----
UNIVERSITY REVENUE 10.4%
2,500 Illinois Development Finance Authority -
Aurora - Central Catholic High School,
3.95%, 4/01/24<F17> 2,500
2,000 Illinois Development Finance Authority -
Lake Forest Academy, 3.95%, 12/01/24<F17> 2,000
3,000 Illinois Development Finance Authority -
St. Ignatius College Prep, 3.95%, 6/01/24<F17> 3,000
1,275 University of Iowa, Facilities Corp.,
4.00%, 6/01/05<F17> 1,275
-----
8,775
-----
Total Revenue Bonds 55,435
------
INVESTMENT COMPANIES 9.4%
4,204 Financial Square Tax-Exempt
Money Market Fund 4,204
3,716 Tax-Free Investment Trusts 3,716
-----
Total Investment Companies 7,920
-----
Total Investments 99.3% 83,469
------
Other Assets, less Liabilities 0.7% 615
------
NET ASSETS 100.0% $84,084
=======
<F17>Variable rate security
<F18>Stated maturity with mandatory put
<F19>Stated maturity with option to put
See notes to the financial statements.
MONEY MARKET FUND
U.S. TREASURY MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
TAX-EXEMPT MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS
1.ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988, as
a Wisconsin Corporation and is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended. The Money Market,
U.S. Treasury Money Market (formerly the U.S. Federal Money Market Fund), U.S.
Government Money Market and Tax-Exempt Money Market Funds (the "Funds") are
separate, diversified investment portfolios of the Company. The Money Market,
U.S. Treasury Money Market, U.S. Government Money Market and Tax-Exempt Money
Market Funds commenced operations on March 16, 1988, April 29, 1991, August 1,
1988 and June 27, 1988, respectively.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - The securities are valued on the
basis of amortized cost for financial reporting purposes and federal income tax
purposes, which approximates market
value. Variable rate demand notes are valued at cost which approximates market
value.
b) Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied with the provisions of the Internal Revenue Code
available to regulated investment companies and intend to continue to so comply
in future years.
c) Expenses - The Funds are charged for those expenses
that are directly attributable to each portfolio such as advisory,
administration, service organization fees and certain shareowner service fees.
Expenses that are not directly attributable to a portfolio are typically
allocated among the Company's portfolios in proportion to their respective net
assets, number of shareowner accounts or net sales, where applicable.
d) Distributions to Shareowners - Dividends from net investment income are
declared daily and paid monthly. Distributions of net realized capital gains, if
any, will be declared at least annually.
e) Other - The Funds recognize interest income on the accrual basis. For
securities with put provisions, discounts and premiums are amortized to the
earlier of the put date or maturity. For the remainder of securities, discounts
and premiums are amortized over the life of the respective securities.
Investment and shareowner transactions are recorded no later than the first
business day after the trade date. Realized gains and losses from investment
transactions are reported on an identified cost basis which is the same basis
the Funds use for federal income tax purposes. The U.S. Government Money Market
Fund has investments in floating rate government agency notes. The notes have
weekly interest rate reset provisions which are tied to the 90-day Treasury bill
rate. The Fund values the securities at amortized cost, which approximates
market. Transactions in capital shares at $1.00 per share are shown in the
Statement of Changes in Net Assets. Generally accepted accounting principles
require that permanent financial reporting and tax differences be reclassified
to capital stock.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual rate of 0.50% on the first
$2 billion of each Fund's average daily net assets, and 0.40% of each Fund's
average daily net assets in excess of $2 billion. For the year ended October 31,
1995, FIRMCO voluntarily waived $366, $97, $136 and $118 of its advisory fees,
in thousands, for the Money Market, U.S. Treasury Money Market, U.S. Government
Money Market and Tax-Exempt Money Market Funds, respectively.
Firstar Trust Company, an affiliate of FIRMCO, serves as custodian, transfer
agent and accounting services agent for the Funds.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, computed daily and
payable monthly, at the annual rate of 0.125% of the Company's first $2 billion
of average aggregate daily net assets plus 0.10% of the Company's average
aggregate daily net assets in excess of $2 billion. For the year ended October
31, 1995, $119, $45, $130 and $52 of administration fees, in thousands, are
voluntarily waived for the Money Market, U.S. Treasury Money Market, U.S.
Government Money Market and Tax-Exempt Money Market Funds, respectively.
Prior to January 1, 1995, The Funds had Servicing Agreements with certain
Service Organizations, including FIRMCO and its affiliates. The Service
Organizations were entitled to receive fees from the Funds up to the annual rate
of 0.25% of the average daily net assets of the Funds for certain support and/or
distribution services to customers of the Service Organizations who were
beneficial owners of Fund shares. Service Organization fees, in thousands, paid
by the Money Market, U.S. Treasury Money Market, U.S. Government Money Market
and Tax-Exempt Money Market Funds to FIRMCO and its affiliates aggregated $15,
$19, $75 and $25, respectively, for the year ended October 31, 1995. The
Servicing Agreements were terminated effective January 1, 1995.
The Funds have adopted a Service and Distribution Plan pursuant to Rule 12b-1
of the Investment Company Act of 1940 and made payments, in thousands, for the
Money Market Fund of $33, for the year ended October 31, 1995. No payments for
the U.S. Government Money Market, U.S. Treasury Money Market or Tax-Exempt Money
Market Funds were made during the year ended October 31, 1995.
Each Director of the Company who is not affiliated with FIRMCO receives an
annual fee from the Company for service as a Director and is eligible to
participate in a deferred compensation plan with respect to these fees.
Participants in the plan may designate their deferred Director's fees as if
invested in any one of the Portico Funds (with the exception of the MicroCap
Fund)or in 90-day U.S. Treasury bills. The value of each Director's deferred
compensation account will increase or decrease as if it were invested in shares
of the selected Portico Funds or 90-day U.S. Treasury bills. The Funds maintain
their proportionate share of the Company's liability for deferred fees.
Report of Independent Accountants
To the Board of Directors and Shareholders of the Portico Money Market Fund, the
Portico U.S.Treasury Money Market Fund, the Portico U.S. Government Money Market
Fund and the Portico Tax-Exempt Money Market Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedules of investments, 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 the Portico Money Market Fund, the
Portico U.S.Treasury Money Market Fund (formerly the Portico U.S. Federal Money
Market Fund), the Portico U.S. Government Money Market Fund and the Portico Tax-
Exempt Money Market Fund (four of the portfolios of Portico Funds, Inc. (the
"Funds")) at October 31, 1995, 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 each of their financial highlights for the
year ended October 31, 1995, and for each of the other periods indicated, all in
conformity with generally accepted accounting principles. 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 generally accepted auditing standards 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 October
31, 1995 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above.
/s/ Price Waterhouse
Milwaukee, Wisconsin
November 29, 1995
- -Portico Funds are available through:
- the Portico Funds Center,
- Investment Specialists who are registered representatives of Elan Investment
Services, Inc., a registered broker/dealer, NASD and SIPC member,
- and through selected shareholder organizations.
This report is authorized for distribution only when preceded or accompanied by
a current prospectus.
To Open an Account or Request Information
1-800-982-8909
1-414-287-3710
For Account Balances and Investor Services
1-800-228-1024
1-414-287-3808
Portico Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
- ------------------------------------------------------------------------------
PORTICO FUNDS
ANNUAL REPORT
October 31, 1995
RETAIL CLASS
Short-Term
Bond Market Fund
Intermediate
Bond Market Fund
Tax-Exempt Intermediate
Bond Fund
Bond IMMDEX/TM Fund
NOTICE TO INVESTORS
- -Shares of Portico Funds:
- ARE NOT INSURED BY THE
FDIC, the US Government or any
other governmental agency;
- are not bank deposits or obligations
of or guaranteed by Firstar Bank, its parent company or its affiliates;
- are subject to investment risks,
including possible loss of principal; and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and
an independent third-party distributor.
- -Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
DECEMBER 1995
Dear Shareowner:
INVESTMENT REVIEW
Bond and stock market returns posted strong gains during our 1995 fiscal year
with the S&P 500 gaining 26.4% and the Lehman Brothers Government/Corporate Bond
Index up 16.2%. Of particular note, over the past five years ended October 31,
1995, Portico Bond IMMDEX/TM and Portico Special Growth Funds returned 10.2% and
21.2% (no load), respectively, comfortably exceeding the average return of
similarly invested funds. During 1995, we launched Portico MicroCap Fund, a
capital appreciation fund investing in very small companies.<F20> And, as we
look to the future, we will consider additional new fund offerings and
opportunities.
The Portico Fund Family is participating in the secular shift from savings to
investments. With almost $3 billion in Portico assets, an expanding family of
funds designed to meet diverse investor needs and competitive performance
records, we are optimistic about the coming year.
MARKET OUTLOOK
Last December, we accurately forecast a Gross Domestic Product (GDP) slowdown, a
decline in long-term interest rates, and improving price/earnings ratios for
persistent growth companies. This resulted in improved relative and above normal
absolute returns for equity funds and attractive investment results for the
fixed-income market. On the other hand, our expectation for a 3-4% increase in
the 1995 Consumer Price Index (CPI) (with raw material price pressures offset by
subdued wage gains) and increased stock market volatility were overly
pessimistic. As a whole, the favorable investment climate forecast did lead to a
well above average 1995 year for stock and bond returns in general and in the
Portico twin disciplines (structured fixed-income and growth equity) in
particular.
For 1996, our market outlook is predicated on the following economic and
investment trends:
1. LOW NOMINAL GDP AND RESILIENT "REAL ECONOMIC GROWTH". Well into the fifth
year of an economic expansion, we expect 2-3% "real" economic growth and
continued decelerating levels of inflation (the consumption deflator, a good
current market basket index, rose only 1.7% over the past year) combining for
5% nominal growth versus the 10% average during the 1980s.
2. A FEDERAL BUDGET AGREEMENT built on a recalculated CPI, modestly enhanced
economic growth assumptions, and a modest reduction in the growth rate of the
key discretionary spending programs (Medicare/Medicaid).
3. Continued disinflationary productivity gains and expanding pockets of actual
price deflation (technology and industrial commodities) along with the
previously mentioned CPI recalculation will produce 1996 INFLATION OF 1.5-
2.5%.
4. INVESTOR FRIENDLY TAX INITIATIVES for 1996, including a reduction in the
capital gains tax rate (but no indexing), increased estate limits and expanded
IRAs.
5. Continued emergence of the UNITED STATES AS THE "MARKET OF CHOICE" for the
increasingly one market world of global investors.
6. TREASURY BOND YIELDS, WHICH HAVE DECLINED OVER 2% THIS YEAR, WILL AT LEAST
RETEST THE SEPTEMBER 1993 LOW YIELD OF 5.8%. Short-term market yields, which
have only declined about .5%, will fall more dramatically, perhaps by 3% over
the next year. The unusually high inflation-adjusted ("real") yields
currently available, along with multi-economic cycle lows in monetary growth,
suggest a potential downside surprise in economic activity.
7. CORPORATE PROFIT GROWTH WILL DECELERATE steadily with the potential for flat
annualized comparisons during 1996.
8. FOR STOCK PRICES, A MODESTLY ABOVE AVERAGE HISTORICAL RETURN (more than 11%)
with continued outperformance of smaller company shares.
As always, we appreciate your continued confidence in the Portico Family of
Funds and urge you to read the portfolio reviews that follow.
J. Scott Harkness, CFA Mary Ellen Stanek, CFA
Chairman/Chief Investment Officer President
Firstar Investment Research & Management Company
<F20> Average annual total returns based on maximum offering price (4% sales
charge) ended October 31, 1995 for Portico Special Growth Fund are as follows: 1
year:20.6%; 3 yrs: 12.9%; 5 yrs: 20.2%; Inception (12/28/89): 14.9%. Average
annual total returns based on the maximum offering price (2% sales charge) for
the same period for Portico Bond IMMDEX/TM Fund are: 1 yr: 13.8%; 3 yrs: 7.4%; 5
yrs: 9.7%; Inception (12/29/89): 9.0%. In the best interest of investors and to
keep the integrity of the Fund in place, Portico MicroCap Fund CLOSED on
December 5, 1995. For more complete information about Portico Special Growth
Fund, including charges and expenses, obtain a prospectus by calling the Portico
Funds Center at 1-800-982-8909. Read it carefully before you invest or send
money.
1995 FIXED-INCOME MARKET, A REVERSAL OF 1994
The past two years have been truly remarkable in the bond market for different
reasons with 1995 appearing to be the reverse image of 1994. In 1994, inflation
was perceived to be on the rise and the economy strong. The Federal Reserve
RAISED short-term interest rates seven times during the year causing interest
rates to rise dramatically and the prices of bonds to decline. You may remember
we said in our 1994 annual report "By any standard, the last year in the bond
market has been difficult." What an understatement! In fact, according to
Ibbotson Associates, the 1994 long-term bond market experienced its worst year
in the past 25 years, while the intermediate-term bond market experienced its
worst year ever.
As we go through 1995, the bond market has experienced the other end of the
spectrum. The economy has slowed to a more sustainable pace and the risk of
inflation has diminished. The Federal Reserve LOWERED short-term interest rates
from 6.0% to 5.75% in July. Short- and long-term rates fell and bond prices
rose, resulting in one of the best years for the fixed-income markets (source:
Ibbotson).
The following yield curve chart illustrates the extreme movement of interest
rates over the past two years. During this time period, the 2-Year Treasury Note
yield rose from 4.0% to 6.8% and the 30-Year Treasury Bond yield rose from 6.0%
to 8.0% in fiscal 1994. While in fiscal 1995, the 2-Year Treasury Note yield
fell to 5.6% and the 30-Year Treasury Bond dropped to 6.3%. This volatility
confirms why we believe interest rate timing is "hazardous to your wealth"-one
poorly timed purchase or sale decision can substantially detract from your long-
term return.
U.S. TREASURY YIELD CURVE
10/31/93 10/31/94 10/31/95
-------- -------- --------
3 MONTH 3.126 5.142 5.426
1 YEAR 3.525 6.144 5.530
2 YEAR 4.097 6.824 5.608
3 YEAR 4.373 7.046 5.681
5 YEAR 4.975 7.481 5.808
10 YEAR 5.556 7.807 6.033
30 YEAR 6.030 7.970 6.355
Although 1994 and 1995 were completely different markets, our fundamental
investment approach of structured fixed-income management has remained the same.
After we define the risk for each portfolio, we remain duration, or risk,
neutral at all times and stay "matched" to the interest rate sensitivity of
the portfolio's benchmark. We also try to add value by offsetting a portion, or
all, of a fund's expenses through ISSUE SELECTION, SECTOR ALLOCATION and YIELD
CURVE POSITIONING. For example, as the yield curve flattened in 1995, our
portfolios benefited due to their positioning on the yield curve. Through our
rigorous research, we search for opportunities to hit "singles" rather than
attempt to hit the "home run" and take the risk of "striking out". We believe
the best route to superior long-term results is through CONSISTENCY OF RETURN.
Ultimately this approach truly offers our fixed-income shareowners the "What
you see is what you get" style of bond management.
OUR STRUCTURED FIXED-INCOME INVESTMENT APPROACH
Market timing in the bond market is extremely difficult. Rather than "out
guess" the direction of interest rates and move the portfolio's maturity and
duration around, we stay the course. We believe in the efficiency of the bond
capital markets to reward greater risk with greater returns over time. In the
bond market, the predominant component of a fund's risk is its principal
fluctuation, or interest rate sensitivity, which is most accurately measured by
duration. Over time, we seek to achieve higher total returns than the benchmarks
through issue, sector and yield curve decisions while staying risk, or duration,
neutral to the benchmark. This is the cornerstone of our structured fixed-income
investment management approach.
Our goal is two-fold:
- - Replicate the return of the market as defined by the fund's benchmark.
- - Achieve added value by generating returns in excess of the benchmark on a
consistent basis through issue selection, sector allocation and yield curve
positioning.
ADDING VALUE
When we are successful, adding value contributes to offsetting a portion, or
all, of the fund expenses. Shareowners have told us that this incremental
performance differentiates our funds in both difficult and favorable market
environments. It is our goal to continue to seek positive added value in the
bond funds to increase portfolio returns in both the up and down phases of a
market cycle. Historical analysis indicates that this "benchmark plus"
approach generates excellent relative and absolute returns.
In the taxable funds, we offer a menu of bond fund choices, each targeted to a
particular maturity segment of the bond market. Portico Short-Term Bond Market
Fund is designed for investors with less tolerance for principal volatility and
lower total return expectations. Intermediate maturities are represented by
Portico Intermediate Bond Market Fund and, for investors seeking tax-exempt
income, we offer Portico Tax-Exempt Intermediate Bond Fund. Portico Bond
IMMDEX/TM Fund utilizes investments in the full maturity range (from cash
investments to thirty year bonds or longer) to achieve total returns, which we
expect will be higher than returns of either the Short-Term Bond Market Fund or
the Intermediate Bond Market Fund over complete market cycles, but come with
additional principal volatility.
<TABLE>
PORTICO FAMILY OF FIXED-INCOME FUNDS
<CAPTION>
SHORT-TERM INTERMEDIATE-TERM BOND FUNDS FULL-TERM
BOND FUND BOND FUND
------------------- ----------------------------------------------------- -------------
Portico Short-Term Portico Intermediate Portico Tax-Exempt Portico Bond
Bond Market Fund Bond Market Fund Intermediate Bond Fund IMMDEX/TM Fund
LEHMAN BROTHERS LEHMAN BROTHERS LEHMAN BROTHERS LEHMAN BROTHERS
BENCHMARK 1-3 YEAR GOV'T./CORP. INTERMEDIATE 5-YEAR GENERAL GOV'T./CORP.
BOND INDEX GOV'T./CORP. BOND INDEX OBLIGATION BOND INDEX BOND INDEX
<S> <C> <C> <C> <C>
AVERAGE QUALITY
OF HOLDINGS <F21> AA AA AAA AA
AVERAGE MATURITY 2.9 YEARS 4.4 YEARS 5.1 YEARS 9.4 YEARS
DURATION 1.7 YEARS 3.2 YEARS 4.2 YEARS 5.1 YEARS
PRINCIPAL VOLATILITY LOW MODERATE MODERATE HIGH
<FN>
Average quality, maturity and duration reflect the portfolio as of October 31,
1995, and will change from time to time in connection with the management of the
portfolios pursuant to the policies described in the current prospectus.
<F21> Dollar weighted average quality of portfolio securities held by the Funds.
Lehman Brothers is neither a sponsor of nor in any way affiliated with Portico
Funds.
Since our funds are maintained with interest rate sensitivities (durations)
which are essentially equivalent to their underlying benchmarks, Portico Short-
Term Bond Market Fund should normally have less expected interest rate
sensitivity than the other Portico bond funds-as evidenced by its shorter
duration of 1.7<F22> years. Similarly, with its 5.1<F22> year duration, Portico
Bond IMMDEX/TM Fund will have the greatest expected interest rate sensitivity.
With durations of 3.2<F22> years and 4.2<F22> years, respectively, Portico
Intermediate Bond Market Fund and Portico Tax-Exempt Intermediate Bond Fund are
expected to display relatively moderate volatility when interest rates change.
This relationship will NOT change as a result of our outlook for the future
level of interest rates. Because of this, "what you see is what you get" in
the Portico bond funds. The structured approach allows the investor to select
the bond fund that is right for his or her needs and objectives, keeping in mind
the principle of RISK AND REWARD TRADEOFF.
<F22>Durations as of October 31, 1995
</TABLE>
CREDIT QUALITY AND PRINCIPAL VOLATILITY
Investors should be aware that there is an important distinction between a
security's credit quality and its potential for principal volatility.
CREDIT QUALITY
Credit quality attempts to measure and define the likelihood of principal loss
on an investment due to the issuer's financial deterioration or default. For
example, the U.S. Government is considered to be the highest credit quality
since it is presumed that all debt incurred will in fact be paid at maturity.
Rating agencies such as Moody's or Standard & Poor's often give corporate bond
issuers quality ratings that reflect their opinion of the company's financial
soundness. These ratings can be broadly categorized as "investment grade" and
"below investment grade." Instruments with below investment grade ratings are
characterized as having more speculative aspects than investment grade
securities. In the Portico bond funds, we invest in only investment grade
securities which are rated Aaa or AAA through Baa or BBB.
PRINCIPAL VOLATILITY
Credit quality seeks to identify and measure only one source of principal
variability for a bond. Often, a far more significant source of a bond's
potential for a change in price is its interest rate sensitivity. Instruments
with the highest interest rate sensitivity can have the highest credit quality.
An accurate measure of a security's interest rate sensitivity is DURATION:
Generally, if a fund has a higher duration figure, it will be more sensitive
to interest rate changes - and if a fund has a lower duration, the less it
should be affected. For example, if a fund has a duration of 6 years, it could
gain approximately 6% of its value (principal price change only) if interest
rates fell by one percentage point and lose approximately 6% if rates rose by
one point. The following is a good rule of thumb formula for understanding
portfolio risk and the approximate absolute price change of a portfolio as
interest rates change:
DURATION X INTEREST RATE CHANGE = APPROXIMATE PRINCIPAL PRICE CHANGE
Duration can be thought of as a bond's "half-life," or average time to receipt
of all of a bond's cash flows, both coupon and principal payments. Longer
duration bonds, in general, have more risk (or are more sensitive to interest
rate changes) than shorter duration bonds. Investors should examine their bond
fund's reported duration with this in mind. Of course, duration as a risk
indicator is based on historical data and does not predict future fund
performance.
LOOKING AHEAD - THE FORECAST FOR 1996
At the end of 1994, we said we were optimistic about the coming year and our
optimism has been rewarded with a stellar year in the bond market. Once again,
we are optimistic about the coming year. Looking ahead, we continue to believe
inflation and economic growth will remain moderate, allowing for the
stabilization, and eventually a modest decline, of interest rates. We continue
to advocate "staying the course", knowing that the Funds have achieved
competitive relative returns and our disciplined, structured approach allows you
to reasonably compare the volatility of our Fund options. And as always, we
strongly believe in investor education and will continue to provide you with the
tools you need to be a better investor.
We appreciate your confidence in the Portico Funds and look forward to providing
you with the benefits of our structured fixed-income strategies.
Mary Ellen Stanek, CFA
Teresa R. Westman, CFA
Daniel A. Tranchita, CFA
Warren D. Pierson, CFA
Portfolio Managers
Firstar Investment Research & Management Company
SHORT-TERM BOND MARKET FUND
Portico Short-Term Bond Market Fund seeks to provide an annual rate of total
return comparable to the annual rate of total return of the Lehman Brothers 1-3
Year Government/Corporate Bond Index, before Fund expenses. Of Portico's three
taxable bond fund offerings, we expect the Short-Term Bond Market Fund will have
the lowest volatility of principal and correspondingly lower expected total
returns over complete market cycles.
With the dramatic decline in interest rates over the past twelve months, Portico
Short-Term Bond Market Fund has performed well. This has been accomplished
through added-value work in three broad areas: ISSUE SELECTION, SECTOR
ALLOCATION, and YIELD CURVE POSITIONING.
ISSUE SELECTION decisions are a critical aspect of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added-value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. Government agency debentures; however, we do invest in short duration
collateralized mortgage obligations (CMOs). Each CMO considered for purchase
goes through rigorous testing of cash flows over a wide range of prepayment
scenarios. Those backed by high quality mortgages with stable duration
characteristics may be purchased. To increase the portfolio's yield, we have
significant exposure to non-Treasury securities. Currently, incremental yield
spreads over U.S. Treasury obligations are fairly modest, making higher quality
securities attractive on a relative basis.
YIELD CURVE POSITIONING has played a lesser role in the Fund's performance over
the last year. We believe our overweighting in the one- and three-year maturity
area was responsible for a portion of the Fund's added value.
PORTFOLIO MANAGER PROFILE
Mary Ellen Stanek, CFA, President of Firstar Investment Research & Management
Company (FIRMCO) and Daniel A. Tranchita, CFA, Vice President and Portfolio
Manager, co-manage the Fund - Mary Ellen since its inception on December 29,
1989 and Dan since January 1, 1993. Mary Ellen has sixteen years of investment
management experience and was named a Director of FIRMCO in 1992. Prior to
joining FIRMCO, she headed the Fixed Income and Quantitative Investment
Management Department at Firstar Trust Company. Mary Ellen received her BA from
Marquette University in 1978 and her MBA from the University of Wisconsin-
Milwaukee in 1984. Dan has been with Firstar since 1989 and has six years of
investment management experience. He received his BA in 1987 and his MBA in 1989
from Marquette University. Mary Ellen and
Dan are both Chartered Financial Analysts.
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95
-------- ----- ----- ----- ----- ----- -----
Portico Short-Term
Bond Market Fund -
No Load 10,000 10,464 11,865 12,966 13,835 14,037 15,264
Portico Short-Term
Bond Market Fund -
Load<F23> 9,800 10,259 11,632 12,713 13,567 13,769 14,972
Lehman Brothers
1-3 Yr.
Gov't./Corp.
Bond Index 10,000 10,738 11,964 12,943 13,712 13,879 15,118
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 3 Years 5 Years 12/29/89
------ ------ ------ --------
PORTICO SHORT-TERM BOND
MARKET FUND - A - NO LOAD 8.7 5.6 7.8 7.5
PORTICO SHORT-TERM BOND
MARKET FUND - A - LOAD<F23> 6.6 4.9 7.4 7.2
LEHMAN BROTHERS 1-3 YEAR
GOV'T./CORP. BOND INDEX<F24> 8.9 5.3 7.1 7.3
<F23>Reflects maximum sales charge of 2.0%.
<F24>The Lehman Brothers 1-3 Year Gov't./Corp. Bond Index is an unmanaged market
value weighted index measuring both principal price changes of, and income pro-
vided by, the under lying universe of securities that comprise the index.
Securities included in the index must meet the following criteria: fixed as
opposed to variable rate; not less than one year to maturity; not more than
three years remaining to maturity; and minimum out stand ing par value of $100
million. An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund will no longer be applied to either the Series A or
Series Institutional shares. The load performance for the Series A shares has
been restated to reflect the impact of the sales charge (and the elimination of
the purchase price adjustment). The no-load performance for the Series A shares
has been restated to reflect the elimination of the purchase price adjustment.
Prior to January 10, 1995, Series A performance does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
SECTOR DISTRIBUTION 10/31/95
U.S. TREASURY 10%
U.S. GOVERNMENT AGENCY 2%
MORTGAGE-BACKED 19%
FINANCE, BANKING, BROKERAGE 24%
INDUSTRIAL 9%
UTILITY 4%
INTERNATIONAL/YANKEE 3%
ASSET-BACKED 27%
CASH 1%
OTHER 1%
TOTAL 100%
PORTFOLIO COMPOSITION 10/31/95
AVERAGE MATURITY 2.9 YEARS
AVERAGE DURATION 1.7 YEARS
QUALITY DISTRIBUTION 10/31/95
U.S. TREASURY 10%
U.S. GOVERNMENT AGENCY 15%
Aaa 34%
Aa 2%
A 36%
Baa 3%
TOTAL 100%
SEC 30-DAY YIELD
5.59%
TOTAL FUND NET ASSETS 10/31/95
$142,688,633
INTERMEDIATE BOND MARKET FUND
Portico Intermediate Bond Market Fund seeks to provide an annual rate of total
return comparable to the annual rate of total return of the Lehman Brothers
Intermediate Government/Corporate Bond Index, before Fund expenses. We expect
the Intermediate Bond Market Fund will have moderate volatility of principal and
higher expected total returns over complete market cycles.
With the dramatic decline in interest rates over the past twelve months, the
Intermediate Bond Market Fund has performed well. This has been accomplished
through added-value work in three broad areas: ISSUE SELECTION, SECTOR
ALLOCATION, and YIELD CURVE POSITIONING.
ISSUE SELECTION decisions are a critical aspect of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added-value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. Government agency debentures and mortgage-backed securities. While we do
invest in collateralized mortgage obligations, we scrutinize each investment
carefully to confirm our belief that it will add value to the Fund. To increase
the Portfolio's yield, we have significant exposure to non-Treasury securities.
Currently, incremental yield spreads over U.S. Treasury obligations are fairly
modest, making higher quality securities attractive on a relative basis.
YIELD CURVE POSITIONING has played a role in the Fund's performance over the
last year. The yield curve has flattened substantially over the last twelve
months to where the spread between the 2-Year Treasury Note and the 30-Year
Treasury Bond is approximately 75 basis points - down from 115 basis points
twelve months ago. We believe our emphasis on holdings in the three-to four-year
maturity area will contribute to future performance.
PORTFOLIO MANAGER PROFILE
Mary Ellen Stanek, CFA, President of Firstar Investment Research & Management
Company (FIRMCO) and Teresa R. Westman, CFA, Senior Vice President and Senior
Portfolio Manager have co-managed the Fund since its inception on January 5,
1993. Mary Ellen has sixteen years of investment management experience and was
named a Director of FIRMCO in 1992. Prior to joining FIRMCO, she headed the
Fixed Income and Quantitative Investment Management Department at Firstar Trust
Company. Mary Ellen received her BA from Marquette University in 1978 and her
MBA from the University of Wisconsin-Milwaukee in 1984. Teresa has been with
Firstar since 1987 and has eight years of investment management experience.
Teresa received her BA from Augustana College in 1985 and her MBA from the
University of Chicago in 1991. Mary Ellen and Teresa are both Chartered
Financial Analysts.
1/5/93 10/93 10/94 10/95
------ ----- ----- -----
Portico Intermediate Bond
Market Fund - A - No Load 10,000 10,858 10,671 11,956
Portico Intermediate Bond
Market Fund - A - Load<F25> 9,800 10,646 10,463 11,723
Lehman Brothers Intermediate
Gov't./Corp. Bond Index 10,000 10,844 10,635 11,968
This chart assumes an initial investment of $10,000 made on 1/5/93
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 1/5/93
----- -------
PORTICO INTERMEDIATE
BOND MARKET FUND - A - NO LOAD 12.0 6.5
PORTICO INTERMEDIATE
BOND MARKET FUND - LOAD<F25> 9.8 5.8
LEHMAN BROTHERS INTERMEDIATE
GOV'T./CORP. BOND INDEX<F26> 12.5 6.6
<F25>Reflects maximum sales charge of 2.0%.
<F26>The Lehman Brothers Intermediate Gov't./Corp. Bond Index is an unmanaged
market value weighted index measuring both principal price changes of, and
income provided by, the underlying universe of securities that comprise the
index. Securities included in the index must meet the following critieria:
fixed as opposed to variable rate; remaining maturity of one to ten years;
minimum outstanding par value of $100 million; and rated investment grade or
higher by Moody's, Standard & Poor's, or Fitch, in that order. An investment
cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund will no longer be applied to either the Series A or
Series Institutional shares. The load performance for the Series A shares has
been restated to reflect the impact of the sales charge (and the elimination of
the purchase price adjustment). The no-load performance for the Series A shares
has been restated to reflect the elimination of the purchase price adjustment.
Prior to January 10, 1995, Series A performance does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
SECTOR DISTRIBUTION 10/31/95
U.S. TREASURY 40%
U.S. GOVERNMENT AGENCY 1%
MORTGAGE-BACKED 5%
FINANCE, BANKING, BROKERAGE 26%
INDUSTRIAL 2%
INTERNATIONAL 2%
ASSET-BACKED 19%
CASH 2%
OTHER 3%
TOTAL 100%
PORTFOLIO COMPOSITION 10/31/95
AVERAGE MATURITY 4.4 YEARS
AVERAGE DURATION 3.2 YEARS
QUALITY DISTRIBUTION 10/31/95
U.S. TREASURY 41%
U.S. GOVERNMENT AGENCY 7%
Aaa 21%
Aa 1%
A 28%
Baa 2%
TOTAL 100%
SEC 30-DAY YIELD
5.53%
TOTAL FUND NET ASSETS 10/31/95
$140,517,003
TAX-EXEMPT INTERMEDIATE BOND FUND
Portico Tax-Exempt Intermediate Bond Fund seeks to provide current income exempt
from federal income tax and emphasizes total return with relatively low
volatility of principal. The securities in which the Fund currently invests have
an average quality rating of AAA and a 5.1 year average maturity. Currently the
Fund does not buy issues which are subject to the alternative minimum tax (AMT).
Despite discussions regarding tax reform (i.e. flat tax proposals), tax-exempt
bonds have performed well this year. In a year of good returns, however, owners
of many municipal debt funds may find a portion of their earnings subject to
federal income tax in the form of capital gains and/or ordinary income. Over the
last year, Portico Tax-Exempt Intermediate Bond Fund has benefited from a strong
bond market and accomplished its goal of providing income entirely EXEMPT from
federal income tax. The Fund's performance is attributable to careful security
selection and strategic yield curve positioning.
CAREFUL SELECTION OF SECURITIES avoided the generation of income subject to
federal tax. As a consequence of the Revenue Reconciliation Act of 1993, a
portion of the annual income generated by many lower coupon bonds purchased at
prices significantly below par is taxable as ordinary income. Portico Tax-Exempt
Intermediate Bond Fund avoided this effect by emphasizing higher coupon bonds
which trade at prices above par. Furthermore, 71% of the Fund is currently
comprised of prerefunded bonds which are collateralized with U.S. Treasury
issues for added security. We believe prerefunded bonds are valued very
attractively relative to other sectors of the tax-exempt market at present and,
with the supply of prerefunded issues diminishing, represent exceptional value
moving forward. Because the Fund does not own any bonds subject to the AMT, none
of the income generated by the Fund since inception has been subject to AMT.
YIELD CURVE POSITIONING also contributed to the Fund's performance over the last
year. While the U.S. Treasury yield curve flattened significantly over the last
year, talk of a flat tax muted the flattening of the municipal yield curve. We
believe our distribution of maturities in the 5-8 year range benefited the Fund
by capturing the bulk of the movement of intermediate maturities while
maintaining relatively low volatility of principal value.
Tax-exempt bonds underperformed their taxable counterparts this year because of
concerns over tax reform. We do not believe that changes in the tax code, if and
when they are implemented, will be substantial enough to significantly alter the
tax-exempt status of municipal bonds. Therefore, we believe that tax-exempt
bonds of intermediate maturity presently offer good relative value and higher
relative total return potential going forward.
PORTFOLIO MANAGER PROFILE
Warren D. Pierson, CFA, Vice President and Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) has managed the Fund since
June 22, 1993. Since joining Firstar in 1985, his responsibilities have included
trading government and government agency issues, as well as money market
instruments. His current portfolio management responsibilities focus on the tax-
exempt bond market. Warren received his BA from Lawrence University in 1984. He
is a Chartered Financial Analyst, as well as a member of the Association for
Investment Management and Research and the Milwaukee Investment Analysts
Society.
2/8/93 10/93 10/94 10/95
------ ----- ----- -----
Portico Tax-Exempt
Intermediate Bond Fund - A - No Load 10,000 10,536 10,459 11,408
Portico Tax-Exempt
Intermediate Bond Fund - A - Load<F27> 9,800 10,329 10,254 11,184
Lehman Brothers 5-Year
General Obligation Bond Index 10,000 10,557 10,499 11,586
This chart assumes an initial investment of $10,000 made on 2/8/93
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 2/8/93
------ ------
PORTICO TAX-EXEMPT INTERMEDIATE
BOND FUND - A - NO LOAD 9.1 4.9
PORTICO TAX-EXEMPT INTERMEDIATE
BOND FUND - A - LOAD<F27> 6.9 4.2
LEHMAN BROTHERS 5 YEAR GENERAL
OBLIGATION BOND INDEX<F28> 10.4 5.7
<F27>Reflects maximum sales charge of 2.0%.
<F28>The Lehman Brothers 5 Year General Obligation Bond Index, an unmanaged
index, is a total return performance benchmark for the investment-grade tax-
exempt bond market. To be included in this index, a municipal bond must be a
state or local General Obligation bond; have a minimum credit rating of at least
Baa; have been issued as part of an offering of at least $50 million; have a
maturity amount outstanding of at least $3 million; have been issued within the
last five years; and have a maturity of 4 to 6 years. An investment cannot be
made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. The load performance for
the Series A shares has been restated to reflect the impact of the sales charge.
Prior to January 10, 1995, Series A performance does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
SECTOR DISTRIBUTION 10/31/95
GENERAL OBLIGATIONS 4%
ESCROWED/PREREFUNDED 72%
INSURED 9%
REVENUE 8%
CASH EQUIVALENT 7%
TOTAL 100%
QUALITY DISTRIBUTION 10/31/95
Aaa 89%
Aa 7%
A 4%
Baa 0%
TOTAL 100%
PORTFOLIO COMPOSITION 10/31/95
AVERAGE MATURITY 5.1 YEARS
AVERAGE DURATION 4.2 YEARS
SEC 30-DAY YIELD
3.79%
TOTAL FUND NET ASSETS 10/31/95
$35,305,707
BOND IMMDEX/TM FUND
Portico Bond IMMDEX/TM Fund seeks to provide an annual rate of total return
comparable to the annual rate of total return of the Lehman Brothers
Government/Corporate Bond Index, before Fund expenses. Of Portico's three
taxable bond fund offerings, we expect the Bond IMMDEX/TM Fund will have the
highest volatility of principal and commensurate higher expected total returns
over complete market cycles.
With the dramatic decline in interest rates over the past twelve months, the
Bond IMMDEX/TM Fund has performed well. This has been accomplished through
added-value work in three broad areas: ISSUE SELECTION, SECTOR ALLOCATION, and
YIELD CURVE POSITIONING.
ISSUE SELECTION decisions are a critical aspect of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. Government agency debentures and mortgage-backed securities. While we do
invest in collateralized mortgage obligations, we scrutinize each investment
carefully to confirm our belief that it will add value to the Fund. To increase
the Portfolio's yield, we have significant exposure to non-Treasury securities.
Currently, incremental yield spreads over U.S. Treasury obligations are fairly
modest, making higher quality securities attractive on a relative basis.
YIELD CURVE POSITIONING has played an important role in the Fund's performance
over the last year. The yield curve has flattened substantially over the last
twelve months to where the spread between the 2-Year Treasury Note and the 30-
Year Treasury Bond is approximately 75 basis points -down from 115 basis points
twelve months ago. We believe our overweighting in the four-year maturity area
and the twenty-year maturity area was responsible for a significant
portion of the Fund's added value.
PORTFOLIO MANAGER PROFILE
Mary Ellen Stanek, CFA, President of Firstar Investment Research & Management
Company (FIRMCO) and Teresa R. Westman, CFA, Senior Vice President and Senior
Portfolio Manager have co-managed the Fund - Mary Ellen since its inception on
December 29, 1989 and Teresa since January 1, 1992. Mary Ellen has sixteen years
of investment management experience and was named a Director of FIRMCO in 1992.
Prior to joining FIRMCO, she headed the Fixed Income and Quantitative Investment
Management Department at Firstar Trust Company. Mary Ellen received her BAfrom
Marquette University in 1978 and her MBA from the University of Wisconsin-
Milwaukee in 1984. Teresa has been with Firstar since 1987 and has eight years
of investment management experience. Teresa received her BAfrom Augustana
College in 1985 and her MBA from the University of Chicago in 1991. Mary Ellen
and Teresa are both Chartered Financial Analysts.
12/28/89 10/90 10/91 10/92 10/93 10/94 10/95
-------- ----- ----- ----- ----- ----- -----
Portico Bond
IMMDEX/TM Fund -
A - No Load 10,000 10,421 12,105 13,375 15,154 14,565 16,903
Portico Bond
IMMDEX/TM Fund - 9,800 10,213 11,863 13,108 14,851 14,274 16,565
A - Load<F29>
Lehman
Gov't./Corp Bond 10,000 10,440 12,045 13,312 15,126 14,424 16,755
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 3 Years 5 Years 12/29/89
------- -------- -------- ---------------
PORTICO BOND IMMDEX/TM FUND -
A - NO LOAD 16.1 8.1 10.2 9.4
PORTICO BOND IMMDEX/TM FUND -
A - LOAD<F29> 13.8 7.4 9.7 9.0
LEHMAN BROTHERS GOV'T./CORP.
BOND INDEX<F30> 16.2 8.0 9.9 9.3
<F29>Reflects maximum sales charge of 2.0%.
<F30>The Lehman Brothers Gov't./Corp. Bond Index is an unmanaged market value
weighted index measuring both principal price changes of, and income pro vided
by, the under lying uni verse of secur ities that comprise the index. Securities
included in the index must meet the follow ing critieria: fixed as opposed to
variable rate; not less than one year to maturity; minimum out stand ing par
value of $100 million; and rated investment grade or higher by Moody's, Standard
& Poor's, or Fitch, in that order. An investment cannot be made directly in an
index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund will no longer be applied to either the Series A or
Series Institutional shares. The load performance for the Series A shares has
been restated to reflect the impact of the sales charge (and the elimination of
the purchase price adjustment). The no-load performance for the Series A shares
has been restated to reflect the elimination of the purchase price adjustment.
Prior to January 10, 1995, Series A performance does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
SECTOR DISTRIBUTION 10/31/95
U.S. TREASURY 35%
U.S. GOVERNMENT AGENCY 1%
MORTGAGE-BACKED 2%
FINANCE, BANKING, BROKERAGE 33%
INDUSTRIAL 1%
UTILITY 2%
INTERNATIONAL 3%
ASSET-BACKED 21%
CASH 2%
TOTAL 100%
PORTFOLIO COMPOSITION 10/31/95
AVERAGE MATURITY 9.4 YEARS
AVERAGE DURATION 5.1 YEARS
QUALITY DISTRIBUTION 10/31/95
U.S. TREASURY 37%
U.S. GOVERNMENT AGENCY 3%
Aaa 22%
Aa 1%
A 34%
Baa 3%
TOTAL 100%
SEC 30-DAY YIELD
5.82%
TOTAL FUND NET ASSETS 10/31/95
$312,149,195
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
OCTOBER 31, 1995
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
----------- ----------- ------------ ---------
ASSETS:
Investments, at value
(cost $140,017,
$136,097, $34,023
and $293,903,
respectively) $140,828 $139,159 $ 34,621 $307,132
Interest receivable 2,149 2,650 687 5,127
Capital shares sold 78 7 11 63
Receivable for
securities sold 2,901 - - -
Organization costs,
net of accumulated
amortization - 5 4 -
Other assets 4 4 4 8
--------- --------- --------- ---------
Total Assets 145,960 141,825 35,327 312,330
------- ------- ------ -------
LIABILITIES:
Capital shares
redeemed 1 - - 44
Payable for
securities
purchased 3,191 1,240 - -
Payable to affiliates 63 41 6 112
Accrued expenses 16 27 15 25
-------- -------- -------- --------
Total Liabilities 3,271 1,308 21 181
------- -------- -------- --------
NET ASSETS $142,689 $140,517 $ 35,306 $312,149
======== ======== ======== ========
NET ASSETS CONSIST OF:
Capital stock $143,387 $139,177 $ 34,830 $299,708
Undistributed net
investment income 119 112 20 261
Undistributed
accumulated net
realized (losses) (1,628) (1,834) (142) (1,049)
Unrealized net
appreciation on
investments 811 3,062 598 13,229
-------- -------- -------- --------
Total Net Assets $142,689 $140,517 $ 35,306 $312,149
======== ======== ======== ========
SERIES A:
Net assets $ 47,730 $ 11,576 $ 7,711 $ 21,875
Shares authorized
($.0001 par value) 500,000 500,000 500,000 500,000
Shares issued and
outstanding 4,641 1,133 753 786
Net asset value and
redemption price
per share<F31> $ 10.28 $ 10.21 $ 10.23 $ 27.82
======= ======= ======= =======
Maximum offering
price per share<F31> $ 10.49 $ 10.42 $ 10.44 $ 28.39
======= ======= ======= =======
SERIES INSTITUTIONAL:
Net assets $ 94,959 $128,941 $ 27,595 $290,274
Shares authorized
($.0001 par value) 500,000 500,000 500,000 500,000
Shares issued and
outstanding 9,233 12,625 2,696 10,433
Net asset value,
redemption price
and offering
price per share<F31> $ 10.28 $ 10.21 $ 10.24 $ 27.82
======= ======= ======= =======
<F31>Amounts may not recalculate due to rounding.
See notes to the financial statements.
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 1995
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
----------- ------------ ----------- --------
INVESTMENT INCOME:
Interest income $ 8,616 $ 7,277 $ 1,501 $19,286
------- ------- -------- -------
EXPENSES:
Investment
advisory fees 767 537 151 832
Administration fees 155 130 37 326
Shareowner servicing
and accounting costs 140 90 61 110
Service organization
fees - Series A 89 19 14 34
Custody fees 34 28 7 65
Federal and state
registration fees 12 21 8 7
Professional fees 22 28 26 29
Reports to
shareowners 30 12 8 22
Amortization of
organization costs 3 3 2 2
Directors' fees and
expenses 4 4 4 4
Other 5 4 1 5
------ ------- ------ ------
Total expenses
before waiver 1,261 876 319 1,436
Less: Waiver of expenses (532) (319) (150) (175)
------ ------- ------ ------
Net Expenses 729 557 169 1,261
------ ------- ------ ------
NET INVESTMENT INCOME 7,887 6,720 1,332 18,025
------ ------- ------ ------
REALIZED AND
UNREALIZED GAIN (LOSS):
Net realized gain
(loss) on investment
transactions (329) (417) 8 (890)
Change in unrealized
appreciation
(depreciation)
on investments 3,275 6,232 1,367 24,964
------ ------- ------ ------
Net gain on
investments 2,946 5,815 1,375 24,074
------ ------- ------ ------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS $10,833 $12,535 $2,707 $42,099
======= ======= ====== =======
See notes to the financial statements.
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<CAPTION>
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE BOND IMMDEX/TM
FUND FUND FUND FUND
--------------------- --------------------- ------------------- --------------------
Year ended October 31, Year ended October 31, Year ended October 31, Year ended October 31,
1995 1994 1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 7,887 $ 7,093 $ 6,720 $ 3,836 $ 1,332 $ 1,122 $ 18,025 $ 15,688
Net realized gain
(loss) on investments (329) (1,338) (417) (1,418) 8 (150) (890) (67)
Change in unrealized
appreciation
(depreciation) on
investments 3,275 (4,019) 6,232 (3,723) 1,367 (1,174) 24,964 (26,057)
-------- -------- -------- -------- ------- -------- -------- ---------
Net increase (decrease)
in net assets
resulting from operations 10,833 1,736 12,535 (1,305) 2,707 (202) 42,099 (10,436)
-------- -------- -------- ------- ------- ------- -------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold 47,914 37,720 61,490 45,014 16,278 13,858 72,259 50,075
Shares issued to owners in
reinvestment of dividends 6,375 6,571 4,371 2,882 676 681 17,191 18,402
-------- -------- -------- -------- ------- ------- -------- ---------
54,289 44,291 65,861 47,896 16,954 14,539 89,450 68,477
Shares redeemed (37,051) (57,510) (19,569) (10,681) (9,203) (10,909) (56,782) (41,787)
-------- -------- -------- -------- ------- -------- -------- ---------
Net increase (decrease) 17,238 (13,219) 46,292 37,215 7,751 3,630 32,668 26,690
-------- ------- -------- -------- ------- -------- -------- ---------
DISTRIBUTIONS TO SHAREOWNERS<F32>:
From net investment income (1,426) (7,093) (1,081) (3,837) (228) (1,122) (3,950) (15,515)
From net realized gains - (1,574) - (561) - (5) (404) (4,447)
-------- -------- -------- -------- ------- ------- ------- ---------
(1,426) (8,667) (1,081) (4,398) (228) (1,127) (4,354) (19,962)
-------- ------- -------- -------- ------- ------- -------- ---------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS<F32>:
From net investment income (2,191) - (475) - (238) - (910) -
-------- -------- -------- ------- ------- --------- -------- --------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS<F32>:
From net investment income (4,133) - (5,060) - (853) - (14,132) -
-------- -------- -------- ------- ------- ------- -------- --------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 20,321 (20,150) 52,211 31,512 9,139 2,301 55,371 (3,708)
NET ASSETS:
Beginning of period 122,368 142,518 88,306 56,794 26,167 23,866 256,778 260,486
-------- ------- ------- ------- ------- ------- -------- --------
End of period (including
undistributed net
investment income of $119,
$0, $112, $0, $20, $0, $261
and $1,494, respectively) $142,689 $122,368 $140,517 $88,306 $35,306 $26,167 $312,149 $256,778
======== ======== ======== ======= ======= ======= ======== ========
<FN>
<F32>On January 9, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective on
January 9, 1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares.
Distributions to shareowners from net investment income and net realized gains reflect activity for the Funds for the period
November 1, 1994, through January 9, 1995, and for each Fund's respective class of Shares for the period from January 10, 1995,
through October 31, 1995.
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS, PART 1
<CAPTION>
SHORT-TERM BOND MARKET FUND
-----------------------------------------------------------------------------------------------
Year ended
October 31, Dec. 29, 1989<F33>
1995<F35> Year ended October 31, through
------------------------------ ------------------------------------------ Oct. 31,
Per Share Data: Series A Series Institutional 1994 1993 1992<F34> 1991 1990
-------- -------------------- ---- ---- --------- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $10.03 $10.03 $10.56 $10.60 $10.33 $ 9.79 $10.00
Income from investment operations:
Net investment income<F36> 0.61 0.63 0.56 0.58 0.64 0.73 0.66
Net realized and unrealized
gains (losses) on securities 0.24 0.24 (0.41) 0.10 0.29 0.54 (0.21)
---- ---- ------ ---- ---- ---- ------
Total from investment
operations 0.85 0.87 0.15 0.68 0.93 1.27 0.45
---- ---- ---- ---- ---- ---- ----
Less distributions:
Dividends from net
investment income (0.60) (0.62) (0.56) (0.58) (0.64) (0.73) (0.66)
Distributions from capital gains - - (0.12) (0.14) (0.02) - -
------ ------ ------ ------ ------ ------ ------
Total distributions (0.60) (0.62) (0.68) (0.72) (0.66) (0.73) (0.66)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $10.28 $10.28 $10.03 $10.56 $10.60 $10.33 $9.79
====== ====== ====== ====== ====== ====== =====
Total return<F37><F38> 8.74% 8.95% 1.46% 6.70% 9.28% 13.39% 4.64%
Supplemental data and ratios:
Net assets, in thousands,
end of period $47,730 $94,959 $122,368 $142,518 $129,409 $63,183 $22,731
Ratio of net expenses
to average net assets<F39> 0.69% 0.50% 0.50% 0.52% 0.60% 0.60% 0.60%
Ratio of net investment income
to average net assets<F39> 6.04% 6.23% 5.43% 5.53% 6.00% 7.13% 7.93%
Portfolio turnover rate <F40> 100.58% 100.58% 76.13% 87.62% 82.20% 66.80% 57.40%
FINANCIAL HIGHLIGHTS, PART 2
INTERMEDIATE BOND MARKET FUND TAX-EXEMPT INTERMEDIATE BOND FUND
---------------------------------------------- -------------------------------------------------
Year ended Year ended Feb. 8,
October 31, 1995<F35> Year Jan. 5, 1993<F33> October 31, 1995<F35> Year 1993<F33>
----------------------- ended through ------------------------- ended through
Per Share Data: Series Series Oct. 31, Oct. 31, Series Series Oct. 31, Oct. 31,
A Institutional 1994 1993 A Institutional 1994 1993
------ ------------- ---- ---- ------ ------------- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $9.67 $9.67 $10.45 $10.00 $9.78 $9.78 $10.26 $10.00
Income from investment
operations:
Net investment income<F36> 0.60 0.62 0.51 0.40 0.42 0.44 0.41 0.27
Net realized and
unrealized
gains (losses) on
securities 0.53 0.53 (0.69) 0.45 0.45 0.46 (0.48) 0.26
---- ---- ------ ---- ---- ---- ------ ----
Total from investment
operations 1.13 1.15 (0.18) 0.85 0.87 0.90 (0.07) 0.53
---- ---- ------ ---- ---- ---- ------ ----
Less distributions:
Dividends from net
investment income (0.59) (0.61) (0.51) (0.40) (0.42) (0.44) (0.41) (0.27)
Distributions from
capital gains - - (0.09) - - - - -
----- ------ ------ ------ ------ ------ ------ ------
Total distributions (0.59) (0.61) (0.60) (0.40) (0.42) (0.44) (0.41) (0.27)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end
of period $10.21 $10.21 $9.67 $10.45 $10.23 $10.24 $9.78 $10.26
===== ===== ===== ===== ===== ===== ===== =====
Total return<F37><F38> 12.04% 12.25% (1.73)% 8.58% 9.07% 9.38% (0.73)% 5.36%
Supplemental data and
ratios:
Net assets, in thousands,
end of period $11,576 $128,941 $88,306 $56,794 $7,711 $27,595 $26,167 $23,866
Ratio of net expenses
to average net
assets<F39> 0.69% 0.50% 0.50% 0.50% 0.71% 0.51% 0.60% 0.59%
Ratio of net investment
income to average net
assets<F39> 6.07% 6.26% 5.19% 4.65% 4.25% 4.45% 4.04% 3.75%
Portfolio turnover
rate<F40> 66.69% 66.69% 56.25% 82.37% 44.13% 44.13% 58.54% 3.23%
FINANCIAL HIGHLIGHTS, PART 3
BOND IMMDEX/TM FUND
-------------------------------------------------------------------------------------------
Year ended
October 31, 1995<F35> Year ended October 31, Dec. 29, 1989<F33>
---------------------------------- ------------------------------------- through
Per Share Data: Series A Series Institutional 1994 1993 1992<F34> 1991 Oct. 31, 1990
-------- -------------------- ---- ---- ---- ---- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $25.67 $25.67 $28.91 $27.31 $26.50 $24.52 $25.00
Income from investment operations:
Net investment income<F36> 1.68 1.74 1.65 1.68 1.75 1.85 1.67
Net realized and unrealized
gains (losses) on securities 2.30 2.29 (2.74) 1.83 0.96 1.98 (0.66)
---- ---- ------ ---- ---- ---- ------
Total from investment
operations 3.98 4.03 (1.09) 3.51 2.71 3.83 1.01
---- ---- ------ ---- ---- ---- ----
Less distributions:
Dividends from net
investment income (1.79) (1.84) (1.65) (1.70) (1.76) (1.85) (1.49)
Distributions from capital gains (0.04) (0.04) (0.50) (0.21) (0.14) - -
------ ------ ------ ------ ------ ------ ------
Total distributions (1.83) (1.88) (2.15) (1.91) (1.90) (1.85) (1.49)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $27.82 $27.82 $25.67 $28.91 $27.31 $26.50 $24.52
===== ===== ===== ===== ===== ===== =====
Total return<F37><F38> 16.05% 16.26% (3.89)% 13.30% 10.49% 16.16% 4.21%
Supplemental data and ratios:
Net assets, in thousands,
end of period $21,875 $290,274 $256,778 $260,468 $181,421 $90,034 $44,241
Ratio of net expenses
to average net assets<F39> 0.64% 0.44% 0.48% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income
to average net assets<F39> 6.31% 6.51% 6.14% 6.10% 6.92% 7.85% 8.10%
Portfolio turnover rate<F40> 41.67% 41.67% 49.70% 81.18% 37.72% 131.69% 111.28%
<FN>
<F33>Commencement of operations.
<F34>Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F35>On January 9, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective
January 9, 1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares. For the year
ended October 31, 1995, the Financial Highlights ratios of net expenses to average net assets, ratios of net investment income to
average net assets, total return and the per share income from investment operations and distributions are presented on a basis
whereby the Fund's net investment income, net expenses, net realized and unrealized gains (losses) and distributions for the period
November 1, 1994 through January 9, 1995, were allocated to each class of shares based upon the relative net assets of each class of
shares as of the close of business on January 9, 1995, and the results thereof combined with the results of operations and
distributions for each applicable class for the period January 10, 1995 through October 31, 1995.
<F36>For the Tax-Exempt Intermediate Bond Fund, substantially all investment income is exempt from Federal income tax.
<F37>Not annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds and for the
period ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds.
<F38>The total return calculation does not reflect the 2% front end sales charge for Series A.
<F39>Annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds and for the period
ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds.
<F40>Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares
issued.
See notes to the financial statements.
</TABLE>
SHORT-TERM BOND MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
LONG-TERM INVESTMENTS 98.2%
ASSET-BACKED SECURITIES 27.1%
AUTO LOAN RECEIVABLES 3.6%
$4,328 Capital Auto Receivables Asset Trust Series
1993-3, Asset Backed Certificates,
4.60%, 10/15/98 $ 4,237
779 USAA Auto Loan Grantor Trust, Series
1994-1, Class A, 5.00%, 11/15/99 773
87 ML Asset Backed Corporation, Series 1992-1,
Class A2, 5.50%, 5/15/98 87
-----
5,097
-----
CREDIT CARD RECEIVABLES 23.5%
Banc One Credit Card Master Trust:
2,000 Series 1994-A, Class A, 7.15%, 11/15/96 2,028
2,500 Series 1994-B, Class A, 7.55%, 11/15/97 2,578
4,750 Capital One Master Trust, Series
1994-4, Class A, 6.80%, 8/15/97 4,828
5,050 Chase Manhattan Credit Card Master Trust
Series 1992-1, Asset Backed Certificates,
7.40%, 5/15/00 5,144
2,570 Discover Card Master Trust, Series 1992-B,
Class A, 6.80%, 6/15/98 2,611
3,350 Discover Card Master Trust I, Series 1993-2,
Class A, 5.40%, 5/15/99 3,296
MBNA Master Credit Card Trust:
1,000 Series 1992-1, Class A, 7.25%, 12/15/97 1,020
3,650 Series 1992-2, Class A, 6.20%, 2/15/98 3,664
5,120 Sears Credit Account Master Trust, Series
1994-2, Class A, 7.25%, 2/15/98 5,245
3,000 Standard Credit Card Trust, Series 1990-3,
Class A, Credit Card Participation
Certificates, 9.50%, 5/10/97 3,146
------
33,560
------
CORPORATE BONDS 35.8%
4,169 Atlantic Richfield Notes, 10.25%, 7/02/00 4,464
5,000 Bear Stearns Floating Rate Medium Term Notes,
6.125% (30 day LIBOR +0.25%), 4/08/97 5,013
875 Bear Stearns Company Senior Notes,
9.125%, 4/15/98 933
1,090 Beneficial Corporation Medium Term Notes,
9.80%, 5/12/97 1,149
1,000 BP America, Inc. Debentures,
8.875%, 12/01/97 1,059
2,000 BP America Inc. Guaranteed Debentures,
10.00%, 7/01/18 2,279
2,000 Chrysler Corporation Debentures,
10.95%, 8/01/17 2,238
2,498 Chrysler Financial Corporation Debentures,
10.40%, 8/01/99 2,676
1,000 Deseret Gn & Trans Cooperative,
10.11%, 12/15/17 1,111
Ford Capital B. V. Notes:
1,524 9.375%, 1/01/98 1,626
2,040 9.00%, 8/15/98 2,191
500 Ford Motor Credit Co. Debentures,
8.875%, 6/15/99 542
3,600 General Motors Acceptance Corporation
Notes, 7.75%, 1/15/99 3,756
2,625 GTE Corporation Debentures,
10.75%, 9/15/17 2,946
600 Heller Financial, Inc. Notes, 7.75%, 5/15/97 615
900 International Lease Finance Corporation
Medium Term Notes, 6.375%, 11/01/96 902
Lehman Brothers Holdings, Inc. Debentures:
900 10.75%, 4/29/96 920
400 Zero Coupon, 5/16/96 387
750 8.375%, 4/01/97 771
3,000 8.875%, 11/01/98 3,195
MONY Funding, Inc. Debentures:
4,245 8.25%, 10/29/96 4,311
700 8.125%, 4/07/97 713
2,000 NationsBank Corporation Notes,
6.625%, 1/15/98 2,023
1,000 Paine Webber Group, Inc. Medium Term
Notes, 5.45%, 1/28/98 976
3,000 Smith Barney Holdings Inc. Notes,
5.625%, 11/15/98 2,953
1,123 Tennessee Gas Pipeline Co. Debentures,
9.25%, 5/15/96 1,142
200 Transamerica Financial Group, Inc.
Subordinated Notes, 8.125%, 10/15/96 204
------
51,095
------
MORTGAGE-BACKED SECURITIES 9.9%
1,082 Citicorp Real Estate Mortgage Investment
Conduit, 8.75%, 5/25/21 1,104
841 GE Home Equity Loan Asset Backed Certificates,
Series 1991-1, Class A, 7.20%, 8/30/11 852
841 Household Finance Corporation, Home Equity
Loan Asset Backed Certificates, Series
1991-2, Class A3, 7.25%, 8/19/06 856
65 MDC Asset Investors Trust,
6.75%, 7/20/13 65
1,251 Morgan Stanley Mortgage Trust, Series 40,
Class 6, 7.00%, 1/20/97 1,253
Resolution Trust Corporation:
166 Series 1992-MH1, Class A1, 7.00%, 4/15/97 166
2,249 Series 1992-MH2, Class A1, 7.00%, 2/15/19 2,254
2,500 Security Pacific Acceptance Corporation,
Series 1992-2, Class A3, 7.50%, 6/15/12 2,599
Security Pacific Home Equity Loan:
1,350 Series 1991-1, Class B, 8.85%, 5/15/98 1,421
3,482 Series 1991-2, Class B, 8.15%, 6/15/20 3,539
------
14,109
------
OTHER 4.0%
Florida Housing Finance Agency:
450 Antigua Club-A-2, 8.625%, 8/01/01 486
425 Brittany Apartments-C-2, 8.625%, 8/01/02 461
550 Maitland Club-B-2, 8.625%, 8/01/01 594
1,250 Hydro-Quebec Canada Debentures,
13.375%, 2/15/13 1,487
2,250 Ontario Province Debentures,
17.00%, 11/05/11 2,625
-------
5,653
-------
U.S. GOVERNMENT AGENCY AND
AGENCY-BACKED ISSUES 11.0%
Federal Home Loan Mortgage Corporation
Participation Certificates:
132 7.00%, 12/01/01 131
201 7.75%, 7/01/09 205
443 Federal Home Loan Mortgage Corporation
Pass-Thru Certificates,Series 1269,
Class E, 7.00%, 5/15/97 443
Federal National Mortgage Association
Guaranteed Real Estate Mortgage
InvestmentConduits Pass-Thru Certificates:
4,640 Series G92-54, Class VB, 7.50%, 12/25/99 4,767
2,999 Series X-19A, Class A, 6.50%, 10/25/00 3,010
Federal National Mortgage Association
Real Estate Mortgage Investment Conduits:
1,000 Series 1992-100, Class H, 7.50%, 9/25/00 999
1,751 Series 1993-155, Class PE, 5.85%, 7/25/98 1,743
1,337 Federal National Mortgage Association
Stripped Mortgage-Backed Securities, Series
1989-75, Class C, Principal Only, 12/25/96 1,268
3,100 Government Trust Certificates, Series 2D
9.25%, 11/15/96 3,145
------
15,711
------
U.S. TREASURY OBLIGATIONS 10.4%
U.S. Treasury Notes:
5,975 5.625%, 1/31/98 5,969
6,550 9.25%, 8/15/98 7,139
1,000 8.875%, 2/15/99 1,093
600 6.75%, 5/31/99 619
-------
14,820
-------
Total Long-Term Investments
(Cost $139,234) 140,045
-------
Number
of Shares
(in thousands)
- -------------
SHORT-TERM INVESTMENTS 0.5%
INVESTMENT COMPANIES 0.5%
10 Financial Square Prime Obligation Fund 10
773 Short-Term Investments Co.
Liquid Assets Portfolio 773
-------
Total Short-Term Investments (Cost $783) 783
-------
Total Investments 98.7% (Cost $140,017) 140,828
-------
Other Assets, less Liabilities 1.3% 1,861
-------
NET ASSETS 100.0% $142,689
=======
See notes to the financial statements.
INTERMEDIATE BOND MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
LONG-TERM INVESTMENTS 97.5%
ASSET-BACKED SECURITIES 19.1%
CREDIT CARD RECEIVABLES 19.1%
$2,000 American Express Master Trust Credit Cards,
Series 1994-2, Class A, 7.60%, 8/15/02 $ 2,121
1,610 Banc One Credit Card Master Trust 1994-C,
Class A, 7.80%, 12/15/00 1,686
Discover Card Master Trust I:
3,600 Series 1993-A, Class A, 6.20%, 5/16/06 3,619
1,000 Series 1993-2, Class A, 5.40%, 5/15/99 984
500 Series 1993-3, Class A, 6.25%, 8/16/00 493
3,475 First Chicago Master Trust II, Series 1994-L,
Class A, 7.15%, 2/15/00 3,588
1,000 HFC Private Label Credit Card Trust II,
Series 1994-2, Class A, 7.80%, 9/20/03 1,047
2,700 MBNA Master Credit Card Trust, Series
1993-3, Class A, Asset Backed Certificates,
5.40%, 3/15/99 2,654
5,700 Sears Credit Account Master Trust II,
Series 1994-1, Class A, 7.00%, 8/15/00 5,878
4,800 Standard Credit Card Trust I, Series 1993-3,
Credit Card Participation Certificates,
Class A, 5.50%, 1/07/99 4,723
-------
26,793
-------
CORPORATE BONDS 28.1%
1,500 BankAmerica Subordinated Notes,
10.00%, 2/01/03 1,792
1,000 Bankers Trust - NY, Subordinated Debentures,
9.50%, 6/14/00 1,117
700 Bank Nova Scotia Subordinated Debentures,
9.00%, 10/01/99 766
1,000 Chase Manhattan Corporation Medium
Term Notes, 8.65%, 2/13/99 1,070
906 Chase Manhattan Corporation Subordinated
Notes, 10.00%, 6/15/99 1,012
Chemical Banking Corporation Subordinated Notes:
1,000 10.375%, 3/15/99 1,123
925 9.75%, 6/15/99 1,029
Chrysler Financial Corporation Debentures:
1,596 10.40%, 8/01/99 1,710
750 13.25%, 10/15/99 922
700 12.75%, 11/01/99 849
2,390 Ford Motor Credit Co. Notes,
5.625%, 12/15/98 2,359
640 Ford Capital B.V. Notes, 9.00%, 8/15/98 687
1,050 General Motors Acceptance Corporation
Notes, 8.00%, 10/01/99 1,110
1,000 General Motors Corporation Debentures,
9.625%, 12/01/00 1,137
2,450 Goldman Sachs Group, L.P. Notes,
6.875%, 9/15/99, (Acquired 10/15/93,
5/13/94; Cost $2,446)<F41> 2,475
1,300 Heller Financial, Inc. Notes, 9.375%, 3/15/98 1,391
1,290 Household Finance Co. Senior Subordinated
Notes, 9.55%, 4/01/00 1,444
International Lease Finance Corporation
Medium Term Notes:
2,000 5.92%, 1/15/98 1,995
500 8.25%, 10/19/98 528
Lehman Brothers Holdings, Inc. Notes:
1,500 8.375%, 2/15/99 1,582
2,000 6.90%, 7/15/99 2,015
1,005 Lehman Brothers, Inc. Senior Subordinated
Notes, 10.00%, 5/15/99 1,112
700 Midland American Capital Corporation
Debentures, 12.75%, 11/15/03 821
MONY Funding, Inc. Debentures:
2,130 8.25%, 10/29/96 2,163
1,325 8.125%, 4/07/97 1,349
1,400 Paine Webber Group, Inc. Senior Notes,
6.25%, 6/15/98 1,388
750 Salomon, Inc. Medium Term Notes,
5.50%, 1/31/98 728
650 The Charles Schwab Corporation Medium
Term Notes, 6.06%, 10/02/00 636
1,731 Security Pacific Corporation Debentures,
9.75%, 5/15/99 1,907
1,250 Smith Barney Holdings, Inc. Notes,
5.50%, 1/15/99 1,222
------
39,439
------
OTHER 3.9%
1,000 Nova Scotia (Province of Canada)
Debentures, 11.50%, 5/15/13 1,158
400 Ontario Province Debentures,
11.75%, 4/25/13 466
St. Louis, Missouri Taxable
Airport Revenue Bonds:
1,800 Series 1993, Lambert-St. Louis
International Airport, 5.30%, 7/01/98 1,764
1,000 Series 1993A, Lambert-St. Louis
International Airport, 5.50%, 7/01/98 984
1,110 Security Pacific Home Equity Loan, Series
1991-2, Class B, 8.15%, 6/15/20 1,128
------
5,500
------
U.S. GOVERNMENT AGENCY AND
AGENCY-BACKED ISSUES 6.1%
Federal Home Loan Mortgage Corporation
Real Estate Mortgage Investment Conduit
Pass-Thru Certificates:
500 Series 1339, Class B, 8.00%, 6/15/99 517
1,000 Series 1289, Class PR, 7.50%, 2/15/03 1,036
1,366 Series 1456, Class LA, 7.50%, 5/15/03 1,396
1,000 Federal Home Loan Mortgage Corporation - Government
National Mortgage Association
Real Estate Mortgage Investment Conduits,
Series 8, Class VB, 7.00%, 4/25/03 1,023
1,200 Federal National Mortgage Association,
Medium Term Bonds, 8.25%, 5/16/05 1,232
Federal National Mortgage Association
Real Estate Mortgage Investment Conduit
Pass-Thru Certificates:
800 Series 1993-23, Class PU, 7.50%, 1/25/00 824
500 Series 1992-73, Class L, 7.50%, 1/25/01 515
2,000 U.S. Department of Veterans Affairs Guaranteed
REMIC Pass-Thru Certificates, Vendee Mortgage
Trust, 1993-1, Class G, 7.00%, 2/15/00 2,051
------
8,594
------
U.S. TREASURY OBLIGATIONS 40.3%
U.S. Treasury Bonds:
2,500 10.75%, 2/15/03 3,198
6,950 11.875%, 11/15/03 9,513
5,400 10.75%, 8/15/05 7,234
U.S. Treasury Notes:
6,750 5.625%, 1/31/98 6,744
29,050 6.75%, 5/31/99 29,967
------
56,656
------
Total Long-Term Investments
(Cost $133,920) 136,982
-------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 1.5%
INVESTMENT COMPANIES 1.5%
10 Financial Square Prime Obligation Fund 10
2,167 Short-Term Investments Co.
Liquid Assets Portfolio 2,167
-------
Total Short-Term Investments
(Cost $2,177) 2,177
-------
Total Investments 99.0%
(Cost $136,097) 139,159
-------
Other Assets, less Liabilities 1.0% 1,358
-------
TOTAL NET ASSETS 100.0% $140,517
=======
<F41>Unregistered Security
See notes to the financial statements.
TAX-EXEMPT INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- --------------
GENERAL OBLIGATION 3.8%
$ 150 Racine, Wisconsin Unified School District,
4.80%, 4/01/01 $ 151
Washington State:
100 6.75%, 10/01/01 108
1,000 6.30%, 9/01/02 1,089
-------
Total General Obligation
(Cost $1,353) 1,348
-------
REVENUE BONDS 7.6%
HOUSING 6.1%
1,000 Saint Charles, Illinois, Industrial
Development - Covington Ct Project,
Mandatory Put 9/01/98, 5.50%, 12/01/09 1,034
1,105 South Dakota Housing Development Authority -
Home Ownership Mortgages, 4.85%, 5/01/01 1,105
-------
2,139
-------
OTHER 0.6%
200 Georgia State Municipal Electric Authority,
4.50%, 1/01/00 200
-------
UNIVERSITY 0.9%
310 New England Education Student Loan
Marketing Corporation, 5.80%, 3/01/02 325
-------
Total Revenue Bonds
(Cost $2,632) 2,664
-------
PREREFUNDED AND ESCROWED
TO MATURITY 72.4%
1,300 Alaska State Housing Finance Corporation,
6.375%, 12/01/12, Prerefunded 12/01/02 1,433
550 Birmingham, Alabama Waterworks and
Sewer, 7.20%, 1/01/19, Prerefunded 1/01/00 616
610 Central Lake County, Illinois Joint Action,
7.00%, 5/01/19, Prerefunded 5/01/00 683
590 Clark County, Nevada School District,
7.625%, 5/01/07, Prerefunded 5/01/00 676
500 Clark County, Nevada School District,
7.65%, 5/01/10, Prerefunded 5/01/00 573
1,000 Convention Center Authority - Rhode
Island Revenue, 6.65%, 5/15/12,
Prerefunded 5/15/01 1,118
1,045 Denver, Colorado City and County School
District No. 1, 6.75%, 12/01/12,
Prerefunded 12/01/02 1,184
1,000 District of Columbia, 8.00%, 6/01/08,
Prerefunded 6/01/98 1,110
475 Farmington, New Mexico, Power Revenue
Bonds, 9.875%, 1/01/13, Prerefunded 7/01/05 650
800 Gadsden East Alabama Medical Clinic -
Baptist Hospital of Gadsden, 7.80%,
11/01/21, Prerefunded 11/01/01 948
1,000 Georgia Municipal Electric Authority Power
Revenue, 8.125%, 1/01/17, Crossover
Refunded 1/01/98 1,093
570 Illinois Education Facilities Authority -
Chicago College of Osteopathic Medicine,
Escrowed to Maturity, 8.75%, 7/01/99 628
2,355 Illinois Education Facilities Authority - Loyola,
7.125%, 7/01/21, Prerefunded 7/01/01 2,692
1,000 Illinois Health Facilities Authority - Swedish -
American Hospital, 7.40%, 4/01/20,
Prerefunded 4/01/00 1,134
1,000 Maricopa County, Arizona, School District
No. 1, Phoenix Elementary,
6.60%, 7/01/03, Prerefunded 7/01/01 1,110
1,000 Maricopa County, Arizona School District
No. 11, Peoria University, 7.00%, 7/01/05,
Prerefunded 7/01/01 1,122
500 Metropolitan Nashville Airport,
7.75%, 7/01/07, Prerefunded 7/01/01 587
870 Michigan State Hospital Financial Authority -
Sister of Mercy Health Corp., 7.50%,
2/15/18, Prerefunded 2/15/01 1,004
1,300 Nevada State,
6.20%, 5/01/04, Prerefunded 5/01/01 1,414
1,000 Philadelphia, Pennsylvania, Regional Port
Authority, Lease Revenue Bonds, 7.15%,
8/01/20, Prerefunded 8/01/00 1,115
1,000 Snohomish County, Washington - Public
Hospital, Stevens Memorial Hospital,
6.85%, 12/01/11, Prerefunded 12/01/01 1,122
1,000 Tucson, Arizona Street and Highway User
Revenue Bonds, Escrowed to Maturity,
9.25%, 7/01/02 1,265
1,005 University of Illinois, Escrowed to Maturity,
6.10%, 10/01/03 1,105
1,000 Wausau, Wisconsin School District, 6.50%,
4/01/10, Prerefunded 4/01/02 1,102
80 Williston, North Dakota, Escrowed to Maturity,
6.00%, 6/01/98 83
------
Total Prerefunded and Escrowed to Maturity
(Cost $25,030) 25,567
------
INSURED BONDS 9.2%
EDUCATION 0.6%
200 Merrillville, Indiana Multi-School Building
Corporation, 6.375%, 7/01/03 218
------
GENERAL OBLIGATION 5.3%
900 Camden, New Jersey, 6.15%, 2/15/00 967
675 Chicago, Illinois, 11.60%, 1/01/01 897
------
1,864
------
PUBLIC FACILITIES & IMPROVEMENTS 3.0%
1,000 Illinois State
6.00%, 7/01/06 1,069
------
WATER AND SEWER 0.3%
100 Pima County, Arizona Sewer
6.20%, 7/01/00 108
------
Total Insured Bonds
(Cost $3,225) 3,259
------
Number
of Shares
(in thousands)
--------------
INVESTMENT COMPANIES 5.1%
1,624 Financial Square Tax-Exempt Money Market 1,624
159 Tax-Free Investment Trusts 159
------
Total Investment Companies
(Cost $1,783) 1,783
------
Total Investments 98.1%
(Cost $34,023) 34,621
------
Other Assets, less Liabilities 1.9% 685
------
NET ASSETS 100.0% $35,306
======
See notes to the financial statements.
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
LONG-TERM INVESTMENTS 96.3%
ASSET-BACKED SECURITIES 20.7%
CREDIT CARD RECEIVABLES 20.7%
$2,600 Banc One Credit Card Master Trust,
Series 1994-C, Class A, 7.80%, 12/15/00 $ 2,724
14,600 Discover Card Master Trust I, Series 1993-2,
Class A, Credit Card Pass-Thru Certificates,
5.40%, 5/15/99 14,365
8,500 First Chicago Master Trust II, Series 1994-L,
Class A, 7.15%, 2/15/00 8,777
2,600 HFC Private Label Credit Card Master Trust II,
Series 1994-2, Class A, 7.80%, 9/20/03 2,721
9,400 MBNA Master Credit Card Trust, Series 1993-3,
Class A, Asset Backed Certificates,
5.40%, 3/15/99 9,241
14,250 Sears Credit Account Master Trust II,
Series 1994-1, Class A, 7.00%, 8/15/00 14,694
12,375 Standard Credit Card Trust I, Series 1993-3,
Credit Card Participation Certificates,
Class A, 5.50%, 1/07/99 12,176
------
64,698
------
CORPORATE BONDS 35.3%
500 American General Finance Corporation
Medium Term Notes, 9.75%, 9/30/98 532
3,250 BankAmerica Subordinated Notes,
10.00%, 2/01/03 3,883
3,000 Bear Stearns Company Senior Notes,
7.625%, 9/15/99 3,122
2,000 British Telecommunications Pub. Ltd. Co.
Debentures, 9.625%, 2/15/19 2,278
500 Burlington Northern Railroad Company
Equipment Trust Cerificates,
11.85%, 1/15/99 581
525 Chase Manhattan Corporation Medium Term
Notes, 8.65%, 2/13/99 562
4,417 Chase Manhattan Corporation Subordinated
Notes, 10.00%, 6/15/99 4,934
Chemical Banking Corporation
Subordinated Notes:
1,715 10.375%, 3/15/99 1,925
3,952 9.75%, 6/15/99 4,396
Chrysler Financial Corporation Debentures:
6,192 13.25%, 10/15/99 7,615
1,728 12.75%, 11/01/99 2,096
3,468 First Chicago Subordinated Notes,
9.00%, 6/15/99 3,780
Ford Capital B. V. Notes:
1,217 9.375%, 1/01/98 1,298
1,450 9.00%, 8/15/98 1,557
Ford Motor Credit Co. Medium Term Notes:
5,000 8.45%, 12/30/98 5,318
500 8.875%, 6/15/99 542
General Motors Acceptance Corporation
Medium Term Notes:
1,750 5.75%, 12/10/97 1,738
1,250 8.00%, 10/01/99 1,321
1,500 Georgia Pacific Corporation Debentures,
9.50%, 2/15/18 1,565
8,600 Goldman Sachs Group, L.P. Notes, 6.875%,
9/15/99 (Acquired 8/18/93, 10/15/93,
5/13/94; Cost $8,639) <F42> 8,687
1,300 GTE Florida Inc. Bonds,
9.625%, 4/01/30 1,377
8,990 Heller Financial, Inc. Debentures,
9.375%, 3/15/98 9,617
2,300 Household Finance Corporation Debentures,
9.625%, 7/15/00 2,595
3,500 International Lease Finance Corporation
Medium Term Notes, 9.82%, 12/14/98 3,853
2,495 Lehman Brothers Holdings Inc. Debentures,
8.875%, 11/01/98 2,657
1,700 Lehman Brothers Holdings Inc. Notes,
6.90%, 7/15/99 1,713
6,060 Lehman Brothers, Inc. Debentures,
10.00%, 5/15/99 6,705
3,479 Midland American Capital Corporation
Debentures, 12.75%, 11/15/03 4,078
5,050 MONY Funding, Inc. Debentures,
8.125%, 4/07/97 5,143
1,700 NCNB Corp. Bonds,
10.20%, 7/15/15 2,206
1,000 Deseret Gn &Trans Cooperative,
9.375%, 1/02/11 1,054
2,416 Pacific Gas & Electric Corporation
Eurodollar Debentures, 12.00%, 1/09/00 2,568
2,800 Salomon, Inc. Medium Term Notes,
5.50%, 1/31/98 2,719
The Charles Schwab Corporation Medium
Term Notes:
2,000 5.84%, 9/30/99 1,955
2,250 5.90%, 10/01/99 2,204
800 Tennessee Gas Pipeline Co. Debentures,
6.00%, 12/15/11 703
1,200 Westvaco Corporation Debentures,
10.125%, 6/01/19 1,398
-------
110,275
-------
OTHER 2.1%
1,700 Italy (Republic of) Debentures,
6.875%, 9/27/23 1,566
840 New Jersey Economic Development
Authority, 7.75%, 6/01/01 865
1,620 Ontario Province Debentures, 11.75%, 4/25/13 1,888
1,800 Quebec Province Bonds, 11.00%, 6/15/15 2,129
-------
6,448
-------
U.S. GOVERNMENT AGENCY AND
AGENCY-BACKED ISSUES 3.2%
500 Federal Home Loan Mortgage Corporation
Guaranteed Real Estate Mortgage Investment
Conduit Pass-Thru Certificates, Series 1169,
Class D, 7.00%, 5/15/21 505
33 Federal Home Loan Mortgage Corporation
Multiclass Mortgage Participation
Certificates, Series 1259, Class IC, Interest
Only, 1007.05%, 10/15/05 424
162 Federal Home Loan Mortgage Corporation
Participation Certificates, 7.50%, 4/01/07 162
3900 Federal National Mortgage Association
Debentures, 9.50%, 11/10/20 4163
Federal National Mortgage Association
Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru Certificates:
500 Series 1989-90, Class E, 8.70%, 12/25/19 523
456 Series 1990-72, Class A, 9.00%, 7/25/20 470
538 Series 1990-72, Class B, 9.00%, 7/25/20 589
Federal National Mortgage Association
Guaranteed Real Estate Mortgage Investment
Conduit Stripped Mortgage-Backed Securities:
320 Series 1991-94, Class H, Principal Only,
9/25/97 221
11 Series 1992-29, Class K, Interest Only,
977.92%, 11/25/00 197
25 Series 1992-145, Class N, Interest Only,
1010.06%, 1/25/06 728
1,300 Series 1989-39, Class C, Principal Only,
6/25/17 1,199
Federal National Mortgage Association
Pass-Thru Certificates:
646 7.50%, 8/01/07 658
197 7.75%, 6/01/08 201
------
10,040
------
U.S. TREASURY OBLIGATIONS 35.0%
U.S. Treasury Bonds:
4,500 10.75%, 2/15/03 5,756
68,900 9.25%, 2/15/16 91,120
11,950 U.S. Treasury Notes,
6.75%, 5/31/99 12,327
-------
109,203
-------
Total Long-Term Investments
(Cost $287,435) 300,664
-------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 2.1%
INVESTMENT COMPANIES 2.1%
11 Financial Square Prime Obligation Fund 11
6,457 Short-Term Investments Co.
Liquid Assets Portfolio 6,457
-------
Total Short-Term Investments (Cost $6,468) 6,468
-------
Total Investments 98.4% (Cost $293,903) 307,132
-------
Other Assets, less Liabilities 1.6% 5,017
-------
TOTAL NET ASSETS 100.0% $312,149
=======
<F42>Unregistered Security
See notes to the financial statements.
SHORT-TERM BOND MARKET FUND
INTERMEDIATE BOND MARKET FUND
TAX-EXEMPT INTERMEDIATE BOND FUND
BOND IMMDEX/TM FUND
NOTES TO THE FINANCIAL STATEMENTS
1.ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988, as
a Wisconsin Corporation and is registered as an open-end management investment
company under the Investment Company Act of 1940. The Short-Term Bond Market,
Intermediate Bond Market, Tax-Exempt Intermediate Bond and Bond IMMDEX/TM
Funds (the "Funds") are separate, diversified investment portfolios of the
Company. The Short-Term Bond Market Fund and Bond IMMDEX/TM Fund commenced
operations on December 29, 1989; the Intermediate Bond Market Fund commenced
operations on January 5, 1993; and the Tax-Exempt Intermediate Bond Fund
commenced operations on February 8, 1993.
The costs, in thousands, incurred in connection with the organization,
initial registration and public offering of shares aggregating $44, $14, $11 and
$46 for the Short-Term Bond Market, Intermediate Bond Market, Tax-Exempt
Intermediate Bond and Bond IMMDEX/TM Funds, respectively, have been paid by the
Funds. These costs are being amortized over the period of benefit, but not to
exceed sixty months from each Fund's commencement of operations.
The Company has issued two classes of Fund shares in each of the Funds:Series
A and Series Institutional. The Series A shares are subject to a 0.25%
shareowner service fee and to an initial sales charge imposed at the time of
purchase, in accordance with the Funds' prospectus. The maximum sales charge is
2% of the offering price or 2.08% of the net asset value. Each class of shares
for each Fund has identical rights and privileges except with respect to
shareowner organization fees paid by Series A shares, voting rights on matters
affecting a single class of shares and the exchange privileges of each class of
shares.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - Securities which are traded on a recognized exchange
are valued at the last sale price on the securities exchange on which such
securities are primarily traded or at the last sale price on the national
securities market. Exchange-traded securities for which there were no
transactions are valued at the current bid prices. Securities traded on only
over-the-counter markets are valued on the basis of closing over-the-counter bid
prices. Instruments with a remaining maturity of 60 days or less are valued on
an amortized cost basis which approximates market value. Securities for which
quotations are not readily available and other assets are valued at fair value
as deter mined by the investment adviser under the supervision of the Board of
Directors.
b) Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied to date with the provisions of the Internal
Revenue Code available to regulated investment companies and intend to continue
to so comply in future years.
c) Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, administration and
certain shareowner service fees. Expenses that are not directly attributable to
a portfolio are typically allocated among the Company's portfolios in proportion
to their respective net assets, number of shareowner accounts or net sales,
where applicable. Net investment income other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative net asset value of outstanding shares (or the
value of dividend-eligible shares, as appropriate) of each class of shares at
the beginning of the day (after adjusting for the current day's capital share
activity of the respective class).
d) Distributions to Shareowners - For the period ended April 30, 1995, dividends
from net investment income of the Short-Term Bond Market, Intermediate Bond
Market and Tax-Exempt Intermediate Bond Funds were declared daily and paid
monthly. Dividends from net investment income of the Bond IMMDEX/TM Fund were
declared and paid quarterly. Effective May 1, 1995, net investment income
dividends for the Funds are declared and paid monthly. For the Bond IMMDEX/TM
Fund, net investment income for the month of April was distributed to
shareowners in the month of April. Distributions of net realized capital gains,
if any, will be declared at least annually.
e) Unregistered Security - The Intermediate Bond Market and Bond IMMDEX/TM Funds
own a certain investment security which is unregistered and thus restricted to
resale. This security is valued by the Funds after giving due consideration to
pertinent factors including recent private sales, market conditions and the
issuer's financial performance. Where future disposition of this security
requires registration under the Securities Act of 1933, the Funds have the right
to include their security in such registration, generally without cost to the
Funds. The Funds have no right to require registration of unregistered
securities.
f) Other - Investment and shareowner transactions are recorded no later than the
first business day after the trade date. The Funds determine the gain or loss
realized from investment transactions by comparing the original cost of the
security lot sold with the net sale proceeds. Interest income is recognized on
an accrual basis. Discounts and premiums on bonds are amortized over the life of
the respective bond. Generally accepted accounting principles require that
permanent financial reporting and tax differences be reclassified to capital
stock.
3. INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the year ended October 31, 1995, were
as follows:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BONDFUND FUND
------------ ------------ ----------- ---------
Purchases:
U.S. Government $50,654 $64,976 - $77,597
Other 94,429 54,076 $19,445 71,413
Sales:
U.S. Government 44,085 40,663 - 71,901
Other 81,326 26,908 12,877 37,744
At October 31, 1995, gross unrealized appreciation and depreciation of
investments for federal income tax purposes, in thousands, were as follows:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BONDFUND FUND
----------- ----------- ----------- ---------
Appreciation $1,587 $3,415 $ 657 $15,130
(Depreciation) (968) (353) (61) (1,962)
-------- -------- ------- ---------
Net unrealized
appreciation on
investments $ 619 $3,062 $ 596 $13,168
====== ====== ===== =======
At October 31, 1995, the cost of investments, in thousands, for federal income
tax purposes was $140,209, $136,097, $34,025 and $293,964 for the Short-Term
Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond and Bond
IMMDEX/TM Funds, respectively. At October 31, 1995, the Short-Term Bond Market,
Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds had accumulated
net realized capital loss carryovers, in thousands, of $1,248, $1,266 and $140,
respectively, expiring in 2002. The Short-Term Bond Market, Intermediate Bond
Market and Bond IMMDEX/TM Funds had accumulated net realized capital loss
carryovers, in thousands, of $189, $568 and $987, respectively, expiring in
2003. For the year ended October 31, 1995, the Tax-Exempt Intermediate Bond Fund
utilized, in thousands, capital loss carryovers of $10. To the extent each Fund
realizes future net capital gains, taxable distributions to its respective
shareowners will be offset by any unused capital loss carryover.
<TABLE>
4.CAPITAL SHARE TRANSACTIONS
On January 9, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective January 9,
1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares. Transactions in capital
shares for the Funds, in thousands, were as follows:
<CAPTION>
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
-------------------- ------------------ ------------------ -----------------
Amount Shares Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PERIOD FROM JAN. 10, TO
OCT. 31, 1995:
Series A shares:
Reclassification of
previous class $ 113,766 11,467 $ 90,367 9,487 $ 28,273 2,909 $ 250,315 9,893
Exchange out to Series
Institutional shares (67,630) (6,818) (82,619) (8,669) (21,916) (2,255) (236,263) (9,338)
Shares sold 10,062 985 5,347 537 2,477 246 8,406 311
Shares issued to owners
in reinvestment
of dividends 1,889 186 257 25 202 20 674 24
Shares redeemed (11,995) (1,179) (2,445) (247) (1,682) (167) (2,814) (104)
--------- ------- ------- ----- ------- ----- ------- -----
Net increase $ 46,092 4,641 $ 10,907 1,133 $ 7,354 753 $ 20,318 786
======== ===== ====== ===== ====== ===== ======= =====
Series Institutional shares:
Exchange in from
Series A shares $ 67,630 6,818 $ 82,619 8,669 $ 21,916 2,255 $ 236,263 9,338
Shares sold 35,067 3,449 50,608 5,053 7,707 762 55,322 2,049
Shares issued to owners
in reinvestment
of dividends 3,077 302 3,251 325 328 33 12,580 467
Shares redeemed (13,589) (1,336) (14,172) (1,422) (3,554) (354) (38,641) (1,421)
-------- ------- -------- ------- ------- ----- -------- -------
Net increase $ 92,185 9,233 $122,306 12,625 $ 26,397 2,696 $ 265,524 10,433
======== ======= ======== ======= ======= ===== ======== =======
PERIOD FROM NOV. 1, 1994 TO
JAN. 9, 1995:
Previous Class:
Reclassification to
Series A shares $(113,766) (11,467) $ (90,367) (9,487) $(28,273) (2,909) $(250,315) (9,893)
Shares sold 2,785 279 5,535 577 6,094 629 8,531 333
Shares issued to owners
in reinvestment
of dividends 1,409 141 863 90 146 15 3,937 156
Shares redeemed (11,467) (1,153) (2,952) (308) (3,967) (410) (15,327) (600)
-------- ------- ------- ----- ------- ----- -------- -----
Net (decrease) $(121,039) (12,200) $ (86,921) (9,128) $(26,000) (2,675) $(253,174) (10,004)
========== ======== ======== ======= ========= ======= ======== =======
FOR THE YEAR ENDED
OCTOBER 31, 1994:
Shares sold $ 37,720 3,648 $ 45,014 4,469 $ 13,858 1,371 $ 50,075 1,831
Shares issued to owners
in reinvestment
of dividends 6,571 639 2,882 287 681 68 18,402 687
Shares redeemed (57,510) (5,587) (10,681) (1,062) (10,909) (1,090) (41,787) (1,523)
-------- ------- -------- ------- -------- ------- -------- -------
Net increase (decrease) $ (13,219) (1,300) $ 37,215 3,694 $ 3,630 349 $ 26,690 995
========= ======= ======== ======= ======== ======= ========= =======
</TABLE>
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual rates presented below as
applied to each Fund's daily net assets. For the year ended October 31, 1995,
FIRMCO voluntarily waived the following fees, in thousands, by Fund:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
----------- ------------ ------------- ----------
Annual rate 0.60% 0.50% 0.50% 0.30%
Fees waived $436 $238 $128 -
Firstar Trust Company, an affiliate of FIRMCO, serves as custodian, transfer
agent and accounting services agent for the Funds.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, computed daily and
payable monthly, at the annual rate of 0.125% of the Company's first $2 billion
of average aggregate daily net assets, plus 0.10% of the Company's average
aggregate daily net assets in excess of $2 billion. For the year ended October
31, 1995, $96, $81, $22 and $175 of administration fees, in thousands, were
voluntarily waived for the Short Term Bond Market, Intermediate Bond Market,
Tax-Exempt Intermediate Bond and Bond IMMDEX/TM Funds, respectively.
Effective January 9, 1995, the Company entered into Servicing Agreements with
certain Service Organizations, including FIRMCO affiliates, for the Series A
class of shares. The Service Organizations are entitled to receive fees from the
Funds up to the annual rate of 0.25% of the average daily net asset value of the
Series A shares for certain support and/or distribution services to customers of
the Service Organizations who are beneficial owners of Series A shares. These
services may include assisting customers in processing purchase, exchange and
redemption requests; processing dividend and distribution payments from the
Funds; and providing information periodically to customers showing their
positions in Series A shares. Service Organization fees, in thousands, paid by
the Short-Term Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate
Bond and Bond IMMDEX/TM Funds to FIRMCO affiliates aggregated $79, $17, $12 and
$30, respectively, for the year ended October 31, 1995.
Each Director of the Company who is not affiliated with FIRMCO receives an
annual fee from the Company for service as a Director and is eligible to
participate in a deferred compensation plan with respect to these fees.
Participants in the plan may designate their deferred Director's fees as if
invested in any one of the Portico Funds (with the exception of the MicroCap
Fund) or in 90-day U.S. Treasury bills. The value of each Director's deferred
compensation account will increase or decrease as if it were invested in shares
of the selected Portico Funds or 90-day U.S. Treasury bills. The Funds maintain
their proportionate share of the Company's liability for deferred fees.
Report of Independent Accountants
To the Board of Directors and Shareholders of the Portico Short-Term Bond Market
Fund, the Portico Intermediate Bond Market Fund, the Portico Tax-Exempt
Intermediate Bond Fund and the Portico Bond IMMDEX/TM Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedules of investments, 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 the Portico Short-Term Bond Market
Fund, the Portico Intermediate Bond Market Fund, the Portico Tax-Exempt
Intermediate Bond Fund and the Portico Bond IMMDEX/TM Fund (four of the
portfolios of Portico Funds, Inc. (the "Funds") at October 31, 1995, 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 each
of their financial highlights for the year ended October 31, 1995, and for each
of the other periods indicated, all in conformity with generally accepted
accounting principles. 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 generally accepted auditing standards
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 October 31, 1995 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse
Milwaukee, Wisconsin
November 29, 1995
- -Portico Funds are available through:
- the Portico Funds Center,
- Investment Specialists who are registered representatives of Elan Investment
Services, Inc., a registered broker/dealer, NASD and SIPC member,
- and through selected shareholder organizations.
This report is authorized for distribution only when preceded or accompanied by
a current prospectus.
To Open an Account or Request Information
1-800-982-8909
1-414-287-3710
For Account Balances and Investor Services
1-800-228-1024
1-414-287-3808
Portico Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
- ----------------------------------------------------------------------------
PORTICO FUNDS
ANNUAL REPORT
October 31, 1995
INSTITUTIONAL CLASS
Short-Term
Bond Market Fund
Intermediate
Bond Market Fund
Tax-Exempt Intermediate
Bond Fund
Bond IMMDEX/TM Fund
NOTICE TO INVESTORS
- -Shares of Portico Funds:
- ARE NOT INSURED BY THE
FDIC, the US Government or any
other governmental agency;
- are not bank deposits or obligations
of or guaranteed by Firstar Bank, its parent company or its affiliates;
- are subject to investment risks,
including possible loss of principal; and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and
an independent third-party distributor.
- -Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
DECEMBER 1995
Dear Shareowner:
INVESTMENT REVIEW
Bond and stock market returns posted strong gains during our 1995 fiscal year
with the S&P 500 gaining 26.4% and the Lehman Brothers Government/Corporate Bond
Index up 16.2%. Of particular note, over the past five years ended October 31,
1995, Portico Bond IMMDEX/TM and Portico Special Growth Funds returned 10.2% and
21.2%, respectively, comfortably exceeding the average return of similarly
invested funds. During 1995, we launched Portico MicroCap Fund, a capital
appreciation fund investing in very small companies.<F43> And, as we look to the
future, we will consider additional new fund offerings and opportunities.
The Portico Fund Family is participating in the secular shift from savings to
investments. With almost $3 billion in Portico assets, an expanding family of
funds designed to meet diverse investor needs and competitive performance
records, we are optimistic about the coming year.
MARKET OUTLOOK
Last December, we accurately forecast a Gross Domestic Product (GDP) slowdown, a
decline in long-term interest rates, and improving price/earnings ratios for
persistent growth companies. This resulted in improved relative and above normal
absolute returns for equity funds and attractive investment results for the
fixed-income market. On the other hand, our expectation for a 3-4% increase in
the 1995 Consumer Price Index (CPI) (with raw material price pressures offset by
subdued wage gains) and increased stock market volatility were overly
pessimistic. As a whole, the favorable investment climate forecast did lead to a
well above average 1995 year for stock and bond returns in general and in the
Portico twin disciplines (structured fixed-income and growth equity) in
particular.
For 1996, our market outlook is predicated on the following economic and
investment trends:
1. LOW NOMINAL GDP AND RESILIENT "REAL ECONOMIC GROWTH". Well into the fifth
year of an economic expansion, we expect 2-3% "real" economic growth and
continued decelerating levels of inflation (the consumption deflator, a good
current market basket index, rose only 1.7% over the past year) combining for
5% nominal growth versus the 10% average during the 1980s.
2. A FEDERAL BUDGET AGREEMENT built on a recalculated CPI, modestly enhanced
economic growth assumptions, and a modest reduction in the growth rate of the
key discretionary spending programs (Medicare/Medicaid).
3. Continued disinflationary productivity gains and expanding pockets of actual
price deflation (technology and industrial commodities) along with the
previously mentioned CPI recalculation will produce 1996 INFLATION OF 1.5-
2.5%.
4. INVESTOR FRIENDLY TAX INITIATIVES for 1996, including a reduction in the
capital gains tax rate (but no indexing), increased estate limits and expanded
IRAs.
5. Continued emergence of the UNITED STATES AS THE "MARKET OF CHOICE" for the
increasingly one market world of global investors.
6. TREASURY BOND YIELDS, WHICH HAVE DECLINED OVER 2% THIS YEAR, WILL AT LEAST
RETEST THE SEPTEMBER 1993 LOW YIELD OF 5.8%. Short-term market yields, which
have only declined about .5%, will fall more dramatically, perhaps by 3% over
the next year. The unusually high inflation-adjusted ("real") yields
currently available, along with multi-economic cycle lows in monetary growth,
suggest a potential downside surprise in economic activity.
7. CORPORATE PROFIT GROWTH WILL DECELERATE steadily with the potential for flat
annualized comparisons during 1996.
8. FOR STOCK PRICES, A MODESTLY ABOVE AVERAGE HISTORICAL RETURN (more than 11%)
with continued outperformance of smaller company shares.
As always, we appreciate your continued confidence in the Portico Family of
Funds and urge you to read the portfolio reviews that follow.
J. Scott Harkness, CFA Mary Ellen Stanek, CFA
Chairman/Chief Investment Officer President
Firstar Investment Research & Management Company
<F43> Average annual total returns ended October 31, 1995 for Portico Special
Growth Fund are as follows: 1 year:25.8%; 3 yrs: 14.5%; 5 yrs: 21.2%; Inception
(12/28/89): 15.7%. Average annual total returns for the same period for Portico
Bond IMMDEX/TM Fund are: 1 yr: 16.3%; 3 yrs: 8.2%; 5 yrs:10.2%; Inception
(12/29/89): 9.4%. In the best interest of investors and to keep the integrity of
the Fund in place, Portico MicroCap Fund CLOSED on December 5, 1995. For more
complete information about Portico Special Growth Fund, including charges and
expenses, obtain a prospectus by calling the Portico Funds Center at 1-800-982-
8909. Read it carefully before you invest or send money.
1995 FIXED-INCOME MARKET, A REVERSAL OF 1994
The past two years have been truly remarkable in the bond market for different
reasons with 1995 appearing to be the reverse image of 1994. In 1994, inflation
was perceived to be on the rise and the economy strong. The Federal Reserve
RAISED short-term interest rates seven times during the year causing interest
rates to rise dramatically and the prices of bonds to decline. You may remember
we said in our 1994 annual report "By any standard, the last year in the bond
market has been difficult." What an understatement! In fact, according to
Ibbotson Associates, the 1994 long-term bond market experienced its worst year
in the past 25 years, while the intermediate-term bond market experienced its
worst year ever.
As we go through 1995, the bond market has experienced the other end of the
spectrum. The economy has slowed to a more sustainable pace and the risk of
inflation has diminished. The Federal Reserve LOWERED short-term interest rates
from 6.0% to 5.75% in July. Short- and long-term rates fell and bond prices
rose, resulting in one of the best years for the fixed-income markets (source:
Ibbotson).
The following yield curve chart illustrates the extreme movement of interest
rates over the past two years. During this time period, the 2-Year Treasury Note
yield rose from 4.0% to 6.8% and the 30-Year Treasury Bond yield rose from 6.0%
to 8.0% in fiscal 1994. While in fiscal 1995, the 2-Year Treasury Note yield
fell to 5.6% and the 30-Year Treasury Bond dropped to 6.3%. This volatility
confirms why we believe interest rate timing is "hazardous to your wealth" -one
poorly timed purchase or sale decision can substantially detract from your long-
term return.
U.S. TREASURY YIELD CURVE
10/31/93 10/31/94 10/31/95
-------- --------- --------
3 MONTH 3.126 5.142 5.426
1 YEAR 3.525 6.144 5.530
2 YEAR 4.097 6.824 5.608
3 YEAR 4.373 7.046 5.681
5 YEAR 4.975 7.481 5.808
10 YEAR 5.556 7.807 6.033
30 YEAR 6.030 7.970 6.355
Although 1994 and 1995 were completely different markets, our fundamental
investment approach of structured fixed-income management has remained the same.
After we define the risk for each portfolio, we remain duration, or risk,
neutral at all times and stay "matched" to the interest rate sensitivity of
the portfolio's benchmark. We also try to add value by offsetting a portion, or
all, of a fund's expenses through ISSUE SELECTION, SECTOR ALLOCATION and YIELD
CURVE POSITIONING. For example, as the yield curve flattened in 1995, our
portfolios benefited due to their positioning on the yield curve. Through our
rigorous research, we search for opportunities to hit "singles" rather than
attempt to hit the "home run" and take the risk of "striking out". We believe
the best route to superior long-term results is through CONSISTENCY OF RETURN.
Ultimately this approach truly offers our fixed-income shareowners the "What
you see is what you get" style of bond management.
OUR STRUCTURED FIXED-INCOME INVESTMENT APPROACH
Market timing in the bond market is extremely difficult. Rather than "out
guess" the direction of interest rates and move the portfolio's maturity and
duration around, we stay the course. We believe in the efficiency of the bond
capital markets to reward greater risk with greater returns over time. In the
bond market, the predominant component of a fund's risk is its principal
fluctuation, or interest rate sensitivity, which is most accurately measured by
duration. Over time, we seek to achieve higher total returns than the benchmarks
through issue, sector and yield curve decisions while staying risk, or duration,
neutral to the benchmark. This is the cornerstone of our structured fixed-income
investment management approach.
Our goal is two-fold:
- - Replicate the return of the market as defined by the fund's benchmark.
- - Achieve added value by generating returns in excess of the benchmark on a
consistent basis through issue selection, sector allocation and yield curve
positioning.
ADDING VALUE
When we are successful, adding value contributes to offsetting a portion, or
all, of the fund expenses. Shareowners have told us that this incremental
performance differentiates our funds in both difficult and favorable market
environments. It is our goal to continue to seek positive added value in the
bond funds to increase portfolio returns in both the up and down phases of a
market cycle. Historical analysis indicates that this "benchmark plus"
approach generates excellent relative and absolute returns.
In the taxable funds, we offer a menu of bond fund choices, each targeted to a
particular maturity segment of the bond market. Portico Short-Term Bond Market
Fund is designed for investors with less tolerance for principal volatility and
lower total return expectations. Intermediate maturities are represented by
Portico Intermediate Bond Market Fund and, for investors seeking tax-exempt
income, we offer Portico Tax-Exempt Intermediate Bond Fund. Portico Bond
IMMDEX/TM Fund utilizes investments in the full maturity range (from cash
investments to thirty year bonds or longer) to achieve total returns, which we
expect will be higher than returns of either the Short-Term Bond Market Fund or
the Intermediate Bond Market Fund over complete market cycles, but come with
additional principal volatility.
<TABLE>
PORTICO FAMILY OF FIXED-INCOME FUNDS
<CAPTION>
SHORT-TERM INTERMEDIATE-TERM BOND FUNDS FULL-TERM
BOND FUND BOND FUND
------------------- ----------------------------------------------------- -------------
Portico Short-Term Portico Intermediate Portico Tax-Exempt Portico Bond
Bond Market Fund Bond Market Fund Intermediate Bond Fund IMMDEX/TM Fund
LEHMAN BROTHERS LEHMAN BROTHERS LEHMAN BROTHERS
LEHMAN BROTHERS
BENCHMARK 1-3 YEAR GOV'T./CORP. INTERMEDIATE 5-YEAR GENERAL GOV'T./CORP.
BOND INDEX GOV'T./CORP. BOND INDEX OBLIGATION BOND INDEX BOND INDEX
<S> <C> <C> <C> <C>
AVERAGE QUALITY
OF HOLDINGS <F44> AA AA AAA AA
AVERAGE MATURITY 2.9 YEARS 4.4 YEARS 5.1 YEARS 9.4 YEARS
DURATION 1.7 YEARS 3.2 YEARS 4.2 YEARS 5.1 YEARS
PRINCIPAL VOLATILITY LOW MODERATE MODERATE HIGH
<FN>
Average quality, maturity and duration reflect the portfolio as of October 31,
1995, and will change from time to time in connection with the management of the
portfolios pursuant to the policies described in the current prospectus.
<F44> Dollar weighted average quality of portfolio securities held by the Funds.
Lehman Brothers is neither a sponsor of nor in any way affiliated with Portico
Funds.
Since our funds are maintained with interest rate sensitivities (durations)
which are essentially equivalent to their underlying benchmarks, Portico Short-
Term Bond Market Fund should normally have less expected interest rate
sensitivity than the other Portico bond funds-as evidenced by its shorter
duration of 1.7<F45> years. Similarly, with its 5.1<F45> year duration, Portico
Bond IMMDEX/TM Fund will have the greatest expected interest rate sensitivity.
With durations of 3.2<F45> years and 4.2<F45> years, respectively, Portico
Intermediate Bond Market Fund and Portico Tax-Exempt Intermediate Bond Fund are
expected to display relatively moderate volatility when interest rates change.
This relationship will NOT change as a result of our outlook for the future
level of interest rates. Because of this, "what you see is what you get" in
the Portico bond funds. The structured approach allows the investor to select
the bond fund that is right for his or her needs and objectives, keeping in mind
the principle of RISK AND REWARD TRADEOFF.
<F45>Durations as of October 31, 1995
</TABLE>
CREDIT QUALITY AND PRINCIPAL VOLATILITY
Investors should be aware that there is an important distinction between a
security's credit quality and its potential for principal volatility.
CREDIT QUALITY
Credit quality attempts to measure and define the likelihood of principal loss
on an investment due to the issuer's financial deterioration or default. For
example, the U.S. Government is considered to be the highest credit quality
since it is presumed that all debt incurred will in fact be paid at maturity.
Rating agencies such as Moody's or Standard & Poor's often give corporate bond
issuers quality ratings that reflect their opinion of the company's financial
soundness. These ratings can be broadly categorized as "investment grade" and
"below investment grade." Instruments with below investment grade ratings are
characterized as having more speculative aspects than investment grade
securities. In the Portico bond funds, we invest in only investment grade
securities which are rated Aaa or AAA through Baa or BBB.
PRINCIPAL VOLATILITY
Credit quality seeks to identify and measure only one source of principal
variability for a bond. Often, a far more significant source of a bond's
potential for a change in price is its interest rate sensitivity. Instruments
with the highest interest rate sensitivity can have the highest credit quality.
An accurate measure of a security's interest rate sensitivity is DURATION:
Generally, if a fund has a higher duration figure, it will be more sensitive
to interest rate changes - and if a fund has a lower duration, the less it
should be affected. For example, if a fund has a duration of 6 years, it could
gain approximately 6% of its value (principal price change only) if interest
rates fell by one percentage point and lose approximately 6% if rates rose by
one point. The following is a good rule of thumb formula for understanding
portfolio risk and the approximate absolute price change of a portfolio as
interest rates change:
DURATION X INTEREST RATE CHANGE = APPROXIMATE PRINCIPAL PRICE CHANGE
Duration can be thought of as a bond's "half-life," or average time to receipt
of all of a bond's cash flows, both coupon and principal payments. Longer
duration bonds, in general, have more risk (or are more sensitive to interest
rate changes) than shorter duration bonds. Investors should examine their bond
fund's reported duration with this in mind. Of course, duration as a risk
indicator is based on historical data and does not predict future fund
performance.
LOOKING AHEAD - THE FORECAST FOR 1996
At the end of 1994, we said we were optimistic about the coming year and our
optimism has been rewarded with a stellar year in the bond market. Once again,
we are optimistic about the coming year. Looking ahead, we continue to believe
inflation and economic growth will remain moderate, allowing for the
stabilization, and eventually a modest decline, of interest rates. We continue
to advocate "staying the course", knowing that the Funds have achieved
competitive relative returns and our disciplined, structured approach allows you
to reasonably compare the volatility of our Fund options. And as always, we
strongly believe in investor education and will continue to provide you with the
tools you need to be a better investor.
We appreciate your confidence in the Portico Funds and look forward to providing
you with the benefits of our structured fixed-income strategies.
Mary Ellen Stanek, CFA
Teresa R. Westman, CFA
Daniel A. Tranchita, CFA
Warren D. Pierson, CFA
Portfolio Managers
Firstar Investment Research & Management Company
SHORT-TERM BOND MARKET FUND
Portico Short-Term Bond Market Fund seeks to provide an annual rate of total
return comparable to the annual rate of total return of the Lehman Brothers 1-3
Year Government/Corporate Bond Index, before Fund expenses. Of Portico's three
taxable bond fund offerings, we expect the Short-Term Bond Market Fund will have
the lowest volatility of principal and correspondingly lower expected total
returns over complete market cycles.
With the dramatic decline in interest rates over the past twelve months, Portico
Short-Term Bond Market Fund has performed well. This has been accomplished
through added-value work in three broad areas: ISSUE SELECTION, SECTOR
ALLOCATION, and YIELD CURVE POSITIONING.
ISSUE SELECTION decisions are a critical aspect of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added-value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. Government agency debentures; however, we do invest in short duration
collateralized mortgage obligations (CMOs). Each CMO considered for purchase
goes through rigorous testing of cash flows over a wide range of prepayment
scenarios. Those backed by high quality mortgages with stable duration
characteristics may be purchased. To increase the portfolio's yield, we have
significant exposure to non-Treasury securities. Currently, incremental yield
spreads over U.S. Treasury obligations are fairly modest, making higher quality
securities attractive on a relative basis.
YIELD CURVE POSITIONING has played a lesser role in the Fund's performance over
the last year. We believe our overweighting in the one- and three-year maturity
area was responsible for a portion of the Fund's added value.
PORTFOLIO MANAGER PROFILE
Mary Ellen Stanek, CFA, President of Firstar Investment Research &Management
Company (FIRMCO) and Daniel A. Tranchita, CFA, Vice President and Portfolio
Manager, co-manage the Fund - Mary Ellen since its inception on December 29,
1989 and Dan since January 1, 1993. Mary Ellen has sixteen years of investment
management experience and was named a Director of FIRMCO in 1992. Prior to
joining FIRMCO, she headed the Fixed Income and Quantitative Investment
Management Department at Firstar Trust Company. Mary Ellen received her BA from
Marquette University in 1978 and her MBA from the University of Wisconsin-
Milwaukee in 1984. Dan has been with Firstar since 1989 and has six years of
investment management experience. He received his BA in 1987 and his MBA in 1989
from Marquette University. Mary Ellen and Dan are both Chartered Financial
Analysts.
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95
-------- ----- ----- ----- ----- ----- -----
Portico Short-Term
Bond Market Fund 10,000 10,464 11,865 12,966 13,833 14,035 15,290
Lehman 1-3 Yr.
Gov't./Corp. Index 10,000 10,738 11,964 12,943 13,712 13,879 15,118
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 3 Years 5 Years 12/29/89
------ ------ ------ --------
PORTICO SHORT-TERM BOND MARKET FUND 9.0 5.7 7.9 7.5
LEHMAN BROTHERS 1-3 YEAR
GOV'T./CORP. BOND INDEX<F46> 8.9 5.3 7.1 7.3
<F46>The Lehman Brothers 1-3 Year Gov't./Corp. Bond Index is an unmanaged market
value weighted index measuring both principal price changes of, and income pro
vided by, the under lying uni verse of secur ities that comprise the index.
Securities included in the index must meet the follow ing criteria: fixed as
opposed to variable rate; not less than one year to maturity; not more than
three years remaining to maturity; and minimum out stand ing par value of $100
million. An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund will no longer be applied to either the Series A or
Series Institutional shares. The performance for the Series Institutional shares
has been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
SECTOR DISTRIBUTION 10/31/95
U.S. TREASURY 10%
U.S. GOVERNMENT AGENCY 2%
MORTGAGE-BACKED 19%
FINANCE, BANKING, BROKERAGE 24%
INDUSTRIAL 9%
UTILITY 4%
INTERNATIONAL/YANKEE 3%
ASSET-BACKED 27%
CASH 1%
OTHER 1%
TOTAL 100%
PORTFOLIO COMPOSITION 10/31/95
AVERAGE MATURITY 2.9 YEARS
AVERAGE DURATION 1.7 YEARS
QUALITY DISTRIBUTION 10/31/95
U.S. TREASURY 10%
U.S. GOVERNMENT AGENCY 15%
Aaa 34%
Aa 2%
A 36%
Baa 3%
TOTAL 100%
SEC 30-DAY YIELD
5.96%
TOTAL FUND NET ASSETS 10/31/95
$142,688,633
INTERMEDIATE BOND MARKET FUND
Portico Intermediate Bond Market Fund seeks to provide an annual rate of total
return comparable to the annual rate of total return of the Lehman Brothers
Intermediate Government/Corporate Bond Index, before Fund expenses. We expect
the Intermediate Bond Market Fund will have moderate volatility of principal and
higher expected total returns over complete market cycles.
With the dramatic decline in interest rates over the past twelve months, the
Intermediate Bond Market Fund has performed well. This has been accomplished
through added-value work in three broad areas: ISSUE SELECTION, SECTOR
ALLOCATION, and YIELD CURVE POSITIONING.
ISSUE SELECTION decisions are a critical aspect of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added-value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. Government agency debentures and mortgage-backed securities. While we do
invest in collateralized mortgage obligations, we scrutinize each investment
carefully to confirm our belief that it will add value to the Fund. To increase
the Portfolio's yield, we have significant exposure to non-Treasury securities.
Currently, incremental yield spreads over U.S. Treasury obligations are fairly
modest, making higher quality securities attractive on a relative basis.
YIELD CURVE POSITIONING has played a role in the Fund's performance over the
last year. The yield curve has flattened substantially over the last twelve
months to where the spread between the 2-Year Treasury Note and the 30-Year
Treasury Bond is approximately 75 basis points - down from 115 basis points
twelve months ago. We believe our emphasis on holdings in the three-to four-year
maturity area will contribute to future performance.
PORTFOLIO MANAGER PROFILE
Mary Ellen Stanek, CFA, President of Firstar Investment Research &Management
Company (FIRMCO) and Teresa R. Westman, CFA, Senior Vice President and Senior
Portfolio Manager have co-managed the Fund since its inception on January 5,
1993. Mary Ellen has sixteen years of investment management experience and was
named a Director of FIRMCO in 1992. Prior to joining FIRMCO, she headed the
Fixed Income and Quantitative Investment Management Department at Firstar Trust
Company. Mary Ellen received her BAfrom Marquette University in 1978 and her MBA
from the University of Wisconsin-Milwaukee in 1984. Teresa has been with Firstar
since 1987 and has eight years of investment management experience. Teresa
received her BAfrom Augustana College in 1985 and her MBA from the University of
Chicago in 1991. Mary Ellen and Teresa are both Chartered Financial Analysts.
1/5/93 10/93 10/94 10/95
------ ----- ----- -----
Portico Intermediate Bond
Market Fund 10,000 10,858 10,670 11,978
Lehman Intermediate
Gov't./Corp. Bond 10,000 10,844 10,635 11,968
This chart assumes an initial investment of $10,000 made on 1/5/93
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 1/5/93
----- -------
PORTICO INTERMEDIATE BOND MARKET FUND 12.3 6.6
LEHMAN BROTHERS INTERMEDIATE
GOV'T./CORP. BOND INDEX<F47> 12.5 6.6
<F47> The Lehman Brothers Intermediate Gov't./Corp. Bond Index is an unmanaged
market value weighted index measuring both principal price changes of, and
income pro vided by, the under lying uni verse of secur ities that comprise the
index. Securities included in the index must meet the follow ing critieria:
fixed as opposed to variable rate; remaining maturity of one to ten years;
minimum out stand ing par value of $100 million; and rated investment grade or
higher by Moody's, Standard & Poor's, or Fitch, in that order. An investment
cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund will no longer be applied to either the Series A or
Series Institutional shares. The performance for the Series Institutional shares
has been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
SECTOR DISTRIBUTION 10/31/95
U.S. TREASURY 40%
U.S. GOVERNMENT AGENCY 1%
MORTGAGE-BACKED 5%
FINANCE, BANKING, BROKERAGE 26%
INDUSTRIAL 2%
INTERNATIONAL 2%
ASSET-BACKED 19%
CASH 2%
OTHER 3%
TOTAL 100%
PORTFOLIO COMPOSITION 10/31/95
AVERAGE MATURITY 4.4 YEARS
AVERAGE DURATION 3.2 YEARS
QUALITY DISTRIBUTION 10/31/95
U.S. TREASURY 41%
U.S. GOVERNMENT AGENCY 7%
Aaa 21%
Aa 1%
A 28%
Baa 2%
TOTAL 100%
SEC 30-DAY YIELD
5.90%
TOTAL FUND NET ASSETS 10/31/95
$140,517,003
TAX-EXEMPT INTERMEDIATE BOND FUND
Portico Tax-Exempt Intermediate Bond Fund seeks to provide current income exempt
from federal income tax and emphasizes total return with relatively low
volatility of principal. The securities in which the Fund currently invests have
an average quality rating of AAA and a 5.1 year average maturity. Currently the
Fund does not buy issues which are subject to the alternative minimum tax (AMT).
Despite discussions regarding tax reform (i.e. flat tax proposals), tax-exempt
bonds have performed well this year. In a year of good returns, however, owners
of many municipal debt funds may find a portion of their earnings subject to
federal income tax in the form of capital gains and/or ordinary income. Over the
last year, Portico Tax-Exempt Intermediate Bond Fund has benefited from a strong
bond market and accomplished its goal of providing income entirely EXEMPT from
federal income tax. The Fund's performance is attributable to careful security
selection and strategic yield curve positioning.
CAREFUL SELECTION OF SECURITIES avoided the generation of income subject to
federal tax. As a consequence of the Revenue Reconciliation Act of 1993, a
portion of the annual income generated by many lower coupon bonds purchased at
prices significantly below par is taxable as ordinary income. Portico Tax-Exempt
Intermediate Bond Fund avoided this effect by emphasizing higher coupon bonds
which trade at prices above par. Furthermore, 71% of the Fund is currently
comprised of prerefunded bonds which are collateralized with U.S. Treasury
issues for added security. We believe prerefunded bonds are valued very
attractively relative to other sectors of the tax-exempt market at present and,
with the supply of prerefunded issues diminishing, represent exceptional value
moving forward. Because the Fund does not own any bonds subject to the AMT, none
of the income generated by the Fund since inception has been subject to AMT.
YIELD CURVE POSITIONING also contributed to the Fund's performance over the last
year. While the U.S. Treasury yield curve flattened significantly over the last
year, talk of a flat tax muted the flattening of the municipal yield curve. We
believe our distribution of maturities in the 5-8 year range benefited the Fund
by capturing the bulk of the movement of intermediate maturities while
maintaining relatively low volatility of principal value.
Tax-exempt bonds underperformed their taxable counterparts this year because of
concerns over tax reform. We do not believe that changes in the tax code, if and
when they are implemented, will be substantial enough to significantly alter the
tax-exempt status of municipal bonds. Therefore, we believe that tax-exempt
bonds of intermediate maturity presently offer good relative value and higher
relative total return potential going forward.
PORTFOLIO MANAGER PROFILE
Warren D. Pierson, CFA, Vice President and Portfolio Manager of Firstar
Investment Research &Management Company (FIRMCO) has managed the Fund since June
22, 1993. Since joining Firstar in 1985, his responsibilities have included
trading government and government agency issues, as well as money market
instruments. His current portfolio management responsibilities focus on the tax-
exempt bond market. Warren received his BAfrom Lawrence University in 1984. He
is a Chartered Financial Analyst, as well as a member of the Association for
Investment Management and Research and the Milwaukee Investment Analysts
Society.
2/8/93 10/93 10/94 10/95
------ ----- ----- -----
Portico Tax-Exempt
Intermediate Bond 10,000 10,536 10,459 11,440
Lehman 5-Year
General Obligation Bond 10,000 10,557 10,499 11,586
This chart assumes an initial investment of $10,000 made on 2/8/93
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 2/8/93
PORTICO TAX-EXEMPT INTERMEDIATE BOND FUND 9.4 5.1
LEHMAN BROTHERS 5 YEAR GENERAL
OBLIGATION BOND INDEX<F48> 10.4 5.7
<F48> The Lehman Brothers 5 Year General Obligation Bond Index, an unmanaged
index, is a total return performance benchmark for the investment-grade tax-
exempt bond market. To be included in this index, a municipal bond must be a
state or local General Obligation bond; have a minimum credit rating of at least
Baa; have been issued as part of an offering of at least $50 million; have a
maturity amount outstanding of at least $3 million; have been issued within the
last five years; and have a maturity of 4 to 6 years. An investment cannot be
made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
SECTOR DISTRIBUTION 10/31/95
GENERAL OBLIGATIONS 4%
ESCROWED/PREREFUNDED 72%
INSURED 9%
REVENUE 8%
CASH EQUIVALENT 7%
TOTAL 100%
QUALITY DISTRIBUTION 10/31/95
Aaa 89%
Aa 7%
A 4%
TOTAL 100%
PORTFOLIO COMPOSITION 10/31/95
AVERAGE MATURITY 5.1 YEARS
AVERAGE DURATION 4.2 YEARS
SEC 30-DAY YIELD
4.11%
TOTAL FUND NET ASSETS 10/31/95
$35,305,707
BOND IMMDEX/TM FUND
Portico Bond IMMDEX/TM Fund seeks to provide an annual rate of total return
comparable to the annual rate of total return of the Lehman Brothers
Government/Corporate Bond Index, before Fund expenses. Of Portico's three
taxable bond fund offerings, we expect the Bond IMMDEX/TM Fund will have the
highest volatility of principal and commensurate higher expected total returns
over complete market cycles.
With the dramatic decline in interest rates over the past twelve months, the
Bond IMMDEX/TM Fund has performed well. This has been accomplished through
added-value work in three broad areas: ISSUE SELECTION, SECTOR ALLOCATION, and
YIELD CURVE POSITIONING.
ISSUE SELECTION decisions are a critical aspect of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. Government agency debentures and mortgage-backed securities. While we do
invest in collateralized mortgage obligations, we scrutinize each investment
carefully to confirm our belief that it will add value to the Fund. To increase
the Portfolio's yield, we have significant exposure to non-Treasury securities.
Currently, incremental yield spreads over U.S. Treasury obligations are fairly
modest, making higher quality securities attractive on a relative basis.
YIELD CURVE POSITIONING has played an important role in the Fund's performance
over the last year. The yield curve has flattened substantially over the last
twelve months to where the spread between the 2-Year Treasury Note and the 30-
Year Treasury Bond is approximately 75 basis points -down from 115 basis points
twelve months ago. We believe our overweighting in the four-year maturity area
and the twenty-year maturity area was responsible for a significant portion
of the Fund's added value.
PORTFOLIO MANAGER PROFILE
Mary Ellen Stanek, CFA, President of Firstar Investment Research &Management
Company (FIRMCO) and Teresa R. Westman, CFA, Senior Vice President and Senior
Portfolio Manager have co-managed the Fund - Mary Ellen since its inception on
December 29, 1989 and Teresa since January 1, 1992. Mary Ellen has sixteen years
of investment management experience and was named a Director of FIRMCO in 1992.
Prior to joining FIRMCO, she headed the Fixed Income and Quantitative Investment
Management Department at Firstar Trust Company. Mary Ellen received her BAfrom
Marquette University in 1978 and her MBA from the University of Wisconsin-
Milwaukee in 1984. Teresa has been with Firstar since 1987 and has eight years
of investment management experience. Teresa received her BAfrom Augustana
College in 1985 and her MBA from the University of Chicago in 1991. Mary Ellen
and Teresa are both Chartered Financial Analysts.
12/28/89 10/90 10/91 10/92 10/93 10/94 10/95
-------- ----- ----- ----- ----- ----- -----
Portico Bond Immdex 10,000 10,421 12,105 13,376 15,154 14,565 16,934
Lehman
Gov't./Corp Bond 10,000 10,440 12,045 13,312 15,126 14,424 16,755
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 3 Years 5 Years 12/29/89
------- -------- -------- ---------------
PORTICO BOND IMMDEX/TM FUND 16.3 8.2 10.2 9.4
LEHMAN BROTHERS GOV'T./CORP.
BOND INDEX<F49> 16.2 8.0 9.9 9.3
<F49> The Lehman Brothers Gov't./Corp. Bond Index is an unmanaged market value
weighted index measuring both principal price changes of, and income pro vided
by, the under lying universe of securities that comprise the index. Securities
included in the index must meet the follow ing critieria: fixed as opposed to
variable rate; not less than one year to maturity; minimum out stand ing par
value of $100 million; and rated investment grade or higher by Moody's, Standard
& Poor's, or Fitch, in that order. An investment cannot be made directly in an
index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund will no longer be applied to either the Series A or
Series Institutional shares. The performance for the Series Institutional shares
has been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
SECTOR DISTRIBUTION 10/31/95
U.S. TREASURY 35%
U.S. GOVERNMENT AGENCY 1%
MORTGAGE-BACKED 2%
FINANCE, BANKING, BROKERAGE 33%
INDUSTRIAL 1%
UTILITY 2%
INTERNATIONAL 3%
ASSET-BACKED 21%
CASH 2%
TOTAL 100%
PORTFOLIO COMPOSITION 10/31/95
AVERAGE MATURITY 9.4 YEARS
AVERAGE DURATION 5.1 YEARS
QUALITY DISTRIBUTION 10/31/95
U.S. TREASURY 37%
U.S. GOVERNMENT AGENCY 3%
Aaa 22%
Aa 1%
A 34%
Baa 3%
TOTAL 100%
SEC 30-DAY YIELD
6.19%
TOTAL FUND NET ASSETS 10/31/95
$312,149,195
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
OCTOBER 31, 1995
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
----------- ----------- ------------ ---------
ASSETS:
Investments, at value
(cost $140,017,
$136,097, $34,023
and $293,903,
respectively) $140,828 $139,159 $ 34,621 $307,132
Interest receivable 2,149 2,650 687 5,127
Capital shares sold 78 7 11 63
Receivable for
securities sold 2,901 - - -
Organization costs,
net of accumulated
amortization - 5 4 -
Other assets 4 4 4 8
--------- --------- --------- ---------
Total Assets 145,960 141,825 35,327 312,330
------- ------- ------ -------
LIABILITIES:
Capital shares
redeemed 1 - - 44
Payable for
securities
purchased 3,191 1,240 - -
Payable to affiliates 63 41 6 112
Accrued expenses 16 27 15 25
-------- -------- -------- --------
Total Liabilities 3,271 1,308 21 181
------- -------- -------- --------
NET ASSETS $142,689 $140,517 $ 35,306 $312,149
======== ======== ======== ========
NET ASSETS CONSIST OF:
Capital stock $143,387 $139,177 $ 34,830 $299,708
Undistributed net
investment income 119 112 20 261
Undistributed
accumulated net
realized (losses) (1,628) (1,834) (142) (1,049)
Unrealized net
appreciation on
investments 811 3,062 598 13,229
-------- -------- -------- --------
Total Net Assets $142,689 $140,517 $ 35,306 $312,149
======== ======== ======== ========
SERIES A:
Net assets $ 47,730 $ 11,576 $ 7,711 $ 21,875
Shares authorized
($.0001 par value) 500,000 500,000 500,000 500,000
Shares issued and
outstanding 4,641 1,133 753 786
Net asset value and
redemption price
per share<F50> $ 10.28 $ 10.21 $ 10.23 $ 27.82
======= ======= ======= =======
Maximum offering
price per share<F50> $ 10.49 $ 10.42 $ 10.44 $ 28.39
======= ======= ======= =======
SERIES INSTITUTIONAL:
Net assets $ 94,959 $128,941 $ 27,595 $290,274
Shares authorized
($.0001 par value) 500,000 500,000 500,000 500,000
Shares issued and
outstanding 9,233 12,625 2,696 10,433
Net asset value,
redemption price
and offering
price per share<F50> $ 10.28 $ 10.21 $ 10.24 $ 27.82
======= ======= ======= =======
<F50>Amounts may not recalculate due to rounding.
See notes to the financial statements.
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 1995
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
----------- ------------ ----------- --------
INVESTMENT INCOME:
Interest income $ 8,616 $ 7,277 $ 1,501 $19,286
------- ------- -------- -------
EXPENSES:
Investment
advisory fees 767 537 151 832
Administration fees 155 130 37 326
Shareowner servicing
and accounting costs 140 90 61 110
Service organization
fees - Series A 89 19 14 34
Custody fees 34 28 7 65
Federal and state
registration fees 12 21 8 7
Professional fees 22 28 26 29
Reports to
shareowners 30 12 8 22
Amortization of
organization costs 3 3 2 2
Directors' fees and
expenses 4 4 4 4
Other 5 4 1 5
------ ------- ------ ------
Total expenses
before waiver 1,261 876 319 1,436
Less: Waiver of expenses (532) (319) (150) (175)
------ ------- ------ ------
Net Expenses 729 557 169 1,261
------ ------- ------ ------
NET INVESTMENT INCOME 7,887 6,720 1,332 18,025
------ ------- ------ ------
REALIZED AND
UNREALIZED GAIN (LOSS):
Net realized gain
(loss) on investment
transactions (329) (417) 8 (890)
Change in unrealized
appreciation
(depreciation)
on investments 3,275 6,232 1,367 24,964
------ ------- ------ ------
Net gain on
investments 2,946 5,815 1,375 24,074
------ ------- ------ ------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS $10,833 $12,535 $2,707 $42,099
======= ======= ====== =======
See notes to the financial statements.
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<CAPTION>
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE BOND IMMDEX/TM
FUND FUND FUND FUND
--------------------- --------------------- ------------------- --------------------
Year ended October 31, Year ended October 31, Year ended October 31, Year ended October 31,
1995 1994 1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 7,887 $ 7,093 $ 6,720 $ 3,836 $ 1,332 $ 1,122 $ 18,025 $ 15,688
Net realized gain
(loss) on investments (329) (1,338) (417) (1,418) 8 (150) (890) (67)
Change in unrealized
appreciation
(depreciation) on
investments 3,275 (4,019) 6,232 (3,723) 1,367 (1,174) 24,964 (26,057)
-------- -------- -------- -------- ------- -------- -------- ---------
Net increase (decrease)
in net assets
resulting from operations 10,833 1,736 12,535 (1,305) 2,707 (202) 42,099 (10,436)
-------- -------- -------- ------- ------- ------- -------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold 47,914 37,720 61,490 45,014 16,278 13,858 72,259 50,075
Shares issued to owners in
reinvestment of dividends 6,375 6,571 4,371 2,882 676 681 17,191 18,402
-------- -------- -------- -------- ------- ------- -------- ---------
54,289 44,291 65,861 47,896 16,954 14,539 89,450 68,477
Shares redeemed (37,051) (57,510) (19,569) (10,681) (9,203) (10,909) (56,782) (41,787)
-------- -------- -------- -------- ------- -------- -------- ---------
Net increase (decrease) 17,238 (13,219) 46,292 37,215 7,751 3,630 32,668 26,690
-------- ------- -------- -------- ------- -------- -------- ---------
DISTRIBUTIONS TO SHAREOWNERS<F51>:
From net investment income (1,426) (7,093) (1,081) (3,837) (228) (1,122) (3,950) (15,515)
From net realized gains - (1,574) - (561) - (5) (404) (4,447)
-------- -------- -------- -------- ------- ------- ------- ---------
(1,426) (8,667) (1,081) (4,398) (228) (1,127) (4,354) (19,962)
-------- ------- -------- -------- ------- ------- -------- ---------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS<F51>:
From net investment income (2,191) - (475) - (238) - (910) -
-------- -------- -------- ------- ------- --------- -------- --------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS<F51>:
From net investment income (4,133) - (5,060) - (853) - (14,132) -
-------- -------- -------- ------- ------- ------- -------- --------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 20,321 (20,150) 52,211 31,512 9,139 2,301 55,371 (3,708)
NET ASSETS:
Beginning of period 122,368 142,518 88,306 56,794 26,167 23,866 256,778 260,486
-------- ------- ------- ------- ------- ------- -------- --------
End of period (including
undistributed net
investment income of $119,
$0, $112, $0, $20, $0, $261
and $1,494, respectively) $142,689 $122,368 $140,517 $88,306 $35,306 $26,167 $312,149 $256,778
======== ======== ======== ======= ======= ======= ======== ========
<FN>
<F51>On January 9, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective on
January 9, 1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares.
Distributions to shareowners from net investment income and net realized gains reflect activity for the Funds for the period
November 1, 1994, through January 9, 1995, and for each Fund's respective class of Shares for the period from January 10, 1995,
through October 31, 1995.
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS, PART 1
<CAPTION>
SHORT-TERM BOND MARKET FUND
-----------------------------------------------------------------------------------------------
Year ended Dec. 29, 1989<F52>
October 31, through
1995<F54> Year ended October 31, Oct. 31,
------------------------------ ------------------------------------------ ---------------
Per Share Data: Series A Series Institutional 1994 1993 1992<F53> 1991 1990
-------- -------------------- ---- ---- --------- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $10.03 $10.03 $10.56 $10.60 $10.33 $ 9.79 $10.00
Income from investment operations:
Net investment income<F55> 0.61 0.63 0.56 0.58 0.64 0.73 0.66
Net realized and unrealized
gains (losses) on securities 0.24 0.24 (0.41) 0.10 0.29 0.54 (0.21)
---- ---- ------ ---- ---- ---- ------
Total from investment
operations 0.85 0.87 0.15 0.68 0.93 1.27 0.45
---- ---- ---- ---- ---- ---- ----
Less distributions:
Dividends from net
investment income (0.60) (0.62) (0.56) (0.58) (0.64) (0.73) (0.66)
Distributions from capital gains - - (0.12) (0.14) (0.02) - -
------ ------ ------ ------ ------ ------ ------
Total distributions (0.60) (0.62) (0.68) (0.72) (0.66) (0.73) (0.66)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $10.28 $10.28 $10.03 $10.56 $10.60 $10.33 $9.79
====== ====== ====== ====== ====== ====== =====
Total return<F56><F57> 8.74% 8.95% 1.46% 6.70% 9.28% 13.39% 4.64%
Supplemental data and ratios:
Net assets, in thousands,
end of period $47,730 $94,959 $122,368 $142,518 $129,409 $63,183 $22,731
Ratio of net expenses
to average net assets<F58> 0.69% 0.50% 0.50% 0.52% 0.60% 0.60% 0.60%
Ratio of net investment income
to average net assets<F58> 6.04% 6.23% 5.43% 5.53% 6.00% 7.13% 7.93%
Portfolio turnover rate <F59> 100.58% 100.58% 76.13% 87.62% 82.20% 66.80% 57.40%
FINANCIAL HIGHLIGHTS, PART 2
INTERMEDIATE BOND MARKET FUND TAX-EXEMPT INTERMEDIATE BOND FUND
---------------------------------------------- -------------------------------------------------
Year ended Year ended Feb. 8,
October 31, 1995<F54> Year Jan. 5, 1993<F52> October 31, 1995<F54> Year 1993<F52>
----------------------- ended through ------------------------- ended through
Per Share Data: Series Series Oct. 31, Oct. 31, Series Series Oct. 31, Oct. 31,
A Institutional 1994 1993 A Institutional 1994 1993
- ------------- ---- ---- - ------------- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $9.67 $9.67 $10.45 $10.00 $9.78 $9.78 $10.26 $10.00
Income from investment
operations:
Net investment income<F55> 0.60 0.62 0.51 0.40 0.42 0.44 0.41 0.27
Net realized and
unrealized
gains (losses) on
securities 0.53 0.53 (0.69) 0.45 0.45 0.46 (0.48) 0.26
---- ---- ------ ---- ---- ---- ------ ----
Total from investment
operations 1.13 1.15 (0.18) 0.85 0.87 0.90 (0.07) 0.53
---- ---- ------ ---- ---- ---- ------ ----
Less distributions:
Dividends from net
investment income (0.59) (0.61) (0.51) (0.40) (0.42) (0.44) (0.41) (0.27)
Distributions from
capital gains - - (0.09) - - - - -
------ ------ ------ ------ ------ ------ ------ ------
Total distributions (0.59) (0.61) (0.60) (0.40) (0.42) (0.44) (0.41) (0.27)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end
of period $10.21 $10.21 $9.67 $10.45 $10.23 $10.24 $9.78 $10.26
===== ===== ===== ===== ===== ===== ===== =====
Total return<F56><F57> 12.04% 12.25% (1.73)% 8.58% 9.07% 9.38% (0.73)% 5.36%
Supplemental data and
ratios:
Net assets, in thousands,
end of period $11,576 $128,941 $88,306 $56,794 $7,711 $27,595 $26,167 $23,866
Ratio of net expenses
to average net
assets<F58> 0.69% 0.50% 0.50% 0.50% 0.71% 0.51% 0.60% 0.59%
Ratio of net investment
income to average net
assets<F58> 6.07% 6.26% 5.19% 4.65% 4.25% 4.45% 4.04% 3.75%
Portfolio turnover
rate<F59> 66.69% 66.69% 56.25% 82.37% 44.13% 44.13% 58.54% 3.23%
FINANCIAL HIGHLIGHTS, PART 3
<CAPTION>
BOND IMMDEX/TM FUND
-------------------------------------------------------------------------------------------
Year ended
October 31, 1995<F54> Year ended October 31, Dec. 29, 1989<F52>
---------------------------------- ------------------------------------- through
Per Share Data: Series A Series Institutional 1994 1993 1992<F53> 1991 Oct. 31, 1990
-------- -------------------- ---- ---- ---- ---- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $25.67 $25.67 $28.91 $27.31 $26.50 $24.52 $25.00
Income from investment operations:
Net investment income<F55> 1.68 1.74 1.65 1.68 1.75 1.85 1.67
Net realized and unrealized
gains (losses) on securities 2.30 2.29 (2.74) 1.83 0.96 1.98 (0.66)
---- ---- ------ ---- ---- ---- ------
Total from investment
operations 3.98 4.03 (1.09) 3.51 2.71 3.83 1.01
---- ---- ------ ---- ---- ---- ----
Less distributions:
Dividends from net
investment income (1.79) (1.84) (1.65) (1.70) (1.76) (1.85) (1.49)
Distributions from capital gains (0.04) (0.04) (0.50) (0.21) (0.14) - -
------ ------ ------ ------ ------ ------ ------
Total distributions (1.83) (1.88) (2.15) (1.91) (1.90) (1.85) (1.49)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $27.82 $27.82 $25.67 $28.91 $27.31 $26.50 $24.52
===== ===== ===== ===== ===== ===== =====
Total return<F56><F57> 16.05% 16.26% (3.89)% 13.30% 10.49% 16.16% 4.21%
Supplemental data and ratios:
Net assets, in thousands,
end of period $21,875 $290,274 $256,778 $260,468 $181,421 $90,034 $44,241
Ratio of net expenses
to average net assets<F58> 0.64% 0.44% 0.48% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income
to average net assets<F58> 6.31% 6.51% 6.14% 6.10% 6.92% 7.85% 8.10%
Portfolio turnover rate<F59> 41.67% 41.67% 49.70% 81.18% 37.72% 131.69% 111.28%
<FN>
<F52>Commencement of operations.
<F53>Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F54>On January 9, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective
January 9, 1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares. For the year
ended October 31, 1995, the Financial Highlights ratios of net expenses to average net assets, ratios of net investment income to
average net assets, total return and the per share income from investment operations and distributions are presented on a basis
whereby the Fund's net investment income, net expenses, net realized and unrealized gains (losses) and distributions for the period
November 1, 1994 through January 9, 1995, were allocated to each class of shares based upon the relative net assets of each class of
shares as of the close of business on January 9, 1995, and the results thereof combined with the results of operations and
distributions for each applicable class for the period January 10, 1995 through October 31, 1995.
<F55>For the Tax-Exempt Intermediate Bond Fund, substantially all investment income is exempt from Federal income tax.
<F56>Not annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds and for the
period ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds.
<F57>The total return calculation does not reflect the 2% front end sales charge for Series A.
<F58>Annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds and for the period
ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds.
<F59>Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares
issued.
See notes to the financial statements.
</TABLE>
SHORT-TERM BOND MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
LONG-TERM INVESTMENTS 98.2%
ASSET-BACKED SECURITIES 27.1%
AUTO LOAN RECEIVABLES 3.6%
$4,328 Capital Auto Receivables Asset Trust Series
1993-3, Asset Backed Certificates,
4.60%, 10/15/98 $ 4,237
779 USAA Auto Loan Grantor Trust, Series
1994-1, Class A, 5.00%, 11/15/99 773
87 ML Asset Backed Corporation, Series 1992-1,
Class A2, 5.50%, 5/15/98 87
-----
5,097
-----
CREDIT CARD RECEIVABLES 23.5%
Banc One Credit Card Master Trust:
2,000 Series 1994-A, Class A, 7.15%, 11/15/96 2,028
2,500 Series 1994-B, Class A, 7.55%, 11/15/97 2,578
4,750 Capital One Master Trust, Series
1994-4, Class A, 6.80%, 8/15/97 4,828
5,050 Chase Manhattan Credit Card Master Trust
Series 1992-1, Asset Backed Certificates,
7.40%, 5/15/00 5,144
2,570 Discover Card Master Trust, Series 1992-B,
Class A, 6.80%, 6/15/98 2,611
3,350 Discover Card Master Trust I, Series 1993-2,
Class A, 5.40%, 5/15/99 3,296
MBNA Master Credit Card Trust:
1,000 Series 1992-1, Class A, 7.25%, 12/15/97 1,020
3,650 Series 1992-2, Class A, 6.20%, 2/15/98 3,664
5,120 Sears Credit Account Master Trust, Series
1994-2, Class A, 7.25%, 2/15/98 5,245
3,000 Standard Credit Card Trust, Series 1990-3,
Class A, Credit Card Participation
Certificates, 9.50%, 5/10/97 3,146
------
33,560
------
CORPORATE BONDS 35.8%
4,169 Atlantic Richfield Notes, 10.25%, 7/02/00 4,464
5,000 Bear Stearns Floating Rate Medium Term Notes,
6.125% (30 day LIBOR +0.25%), 4/08/97 5,013
875 Bear Stearns Company Senior Notes,
9.125%, 4/15/98 933
1,090 Beneficial Corporation Medium Term Notes,
9.80%, 5/12/97 1,149
1,000 BP America, Inc. Debentures,
8.875%, 12/01/97 1,059
2,000 BP America Inc. Guaranteed Debentures,
10.00%, 7/01/18 2,279
2,000 Chrysler Corporation Debentures,
10.95%, 8/01/17 2,238
2,498 Chrysler Financial Corporation Debentures,
10.40%, 8/01/99 2,676
1,000 Deseret Gn & Trans Cooperative,
10.11%, 12/15/17 1,111
Ford Capital B. V. Notes:
1,524 9.375%, 1/01/98 1,626
2,040 9.00%, 8/15/98 2,191
500 Ford Motor Credit Co. Debentures,
8.875%, 6/15/99 542
3,600 General Motors Acceptance Corporation
Notes, 7.75%, 1/15/99 3,756
2,625 GTE Corporation Debentures,
10.75%, 9/15/17 2,946
600 Heller Financial, Inc. Notes, 7.75%, 5/15/97 615
900 International Lease Finance Corporation
Medium Term Notes, 6.375%, 11/01/96 902
Lehman Brothers Holdings, Inc. Debentures:
900 10.75%, 4/29/96 920
400 Zero Coupon, 5/16/96 387
750 8.375%, 4/01/97 771
3,000 8.875%, 11/01/98 3,195
MONY Funding, Inc. Debentures:
4,245 8.25%, 10/29/96 4,311
700 8.125%, 4/07/97 713
2,000 NationsBank Corporation Notes,
6.625%, 1/15/98 2,023
1,000 Paine Webber Group, Inc. Medium Term
Notes, 5.45%, 1/28/98 976
3,000 Smith Barney Holdings Inc. Notes,
5.625%, 11/15/98 2,953
1,123 Tennessee Gas Pipeline Co. Debentures,
9.25%, 5/15/96 1,142
200 Transamerica Financial Group, Inc.
Subordinated Notes, 8.125%, 10/15/96 204
------
51,095
------
MORTGAGE-BACKED SECURITIES 9.9%
1,082 Citicorp Real Estate Mortgage Investment
Conduit, 8.75%, 5/25/21 1,104
841 GE Home Equity Loan Asset Backed Certificates,
Series 1991-1, Class A, 7.20%, 8/30/11 852
841 Household Finance Corporation, Home Equity
Loan Asset Backed Certificates, Series
1991-2, Class A3, 7.25%, 8/19/06 856
65 MDC Asset Investors Trust,
6.75%, 7/20/13 65
1,251 Morgan Stanley Mortgage Trust, Series 40,
Class 6, 7.00%, 1/20/97 1,253
Resolution Trust Corporation:
166 Series 1992-MH1, Class A1, 7.00%, 4/15/97 166
2,249 Series 1992-MH2, Class A1, 7.00%, 2/15/19 2,254
2,500 Security Pacific Acceptance Corporation,
Series 1992-2, Class A3, 7.50%, 6/15/12 2,599
Security Pacific Home Equity Loan:
1,350 Series 1991-1, Class B, 8.85%, 5/15/98 1,421
3,482 Series 1991-2, Class B, 8.15%, 6/15/20 3,539
------
14,109
------
OTHER 4.0%
Florida Housing Finance Agency:
450 Antigua Club-A-2, 8.625%, 8/01/01 486
425 Brittany Apartments-C-2, 8.625%, 8/01/02 461
550 Maitland Club-B-2, 8.625%, 8/01/01 594
1,250 Hydro-Quebec Canada Debentures,
13.375%, 2/15/13 1,487
2,250 Ontario Province Debentures,
17.00%, 11/05/11 2,625
-------
5,653
-------
U.S. GOVERNMENT AGENCY AND
AGENCY-BACKED ISSUES 11.0%
Federal Home Loan Mortgage Corporation
Participation Certificates:
132 7.00%, 12/01/01 131
201 7.75%, 7/01/09 205
443 Federal Home Loan Mortgage Corporation
Pass-Thru Certificates,Series 1269,
Class E, 7.00%, 5/15/97 443
Federal National Mortgage Association
Guaranteed Real Estate Mortgage
InvestmentConduits Pass-Thru Certificates:
4,640 Series G92-54, Class VB, 7.50%, 12/25/99 4,767
2,999 Series X-19A, Class A, 6.50%, 10/25/00 3,010
Federal National Mortgage Association
Real Estate Mortgage Investment Conduits:
1,000 Series 1992-100, Class H, 7.50%, 9/25/00 999
1,751 Series 1993-155, Class PE, 5.85%, 7/25/98 1,743
1,337 Federal National Mortgage Association
Stripped Mortgage-Backed Securities, Series
1989-75, Class C, Principal Only, 12/25/96 1,268
3,100 Government Trust Certificates, Series 2D
9.25%, 11/15/96 3,145
------
15,711
------
U.S. TREASURY OBLIGATIONS 10.4%
U.S. Treasury Notes:
5,975 5.625%, 1/31/98 5,969
6,550 9.25%, 8/15/98 7,139
1,000 8.875%, 2/15/99 1,093
600 6.75%, 5/31/99 619
-------
14,820
-------
Total Long-Term Investments
(Cost $139,234) 140,045
-------
Number
of Shares
(in thousands)
------------
SHORT-TERM INVESTMENTS 0.5%
INVESTMENT COMPANIES 0.5%
10 Financial Square Prime Obligation Fund 10
773 Short-Term Investments Co.
Liquid Assets Portfolio 773
-------
Total Short-Term Investments (Cost $783) 783
-------
Total Investments 98.7% (Cost $140,017) 140,828
-------
Other Assets, less Liabilities 1.3% 1,861
-------
NET ASSETS 100.0% 142,689
=======
See notes to the financial statements.
INTERMEDIATE BOND MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
LONG-TERM INVESTMENTS 97.5%
ASSET-BACKED SECURITIES 19.1%
CREDIT CARD RECEIVABLES 19.1%
2,000 American Express Master Trust Credit Cards,
Series 1994-2, Class A, 7.60%, 8/15/02 2,121
1,610 Banc One Credit Card Master Trust 1994-C,
Class A, 7.80%, 12/15/00 1,686
Discover Card Master Trust I:
3,600 Series 1993-A, Class A, 6.20%, 5/16/06 3,619
1,000 Series 1993-2, Class A, 5.40%, 5/15/99 984
500 Series 1993-3, Class A, 6.25%, 8/16/00 493
3,475 First Chicago Master Trust II, Series 1994-L,
Class A, 7.15%, 2/15/00 3,588
1,000 HFC Private Label Credit Card Trust II,
Series 1994-2, Class A, 7.80%, 9/20/03 1,047
2,700 MBNA Master Credit Card Trust, Series
1993-3, Class A, Asset Backed Certificates,
5.40%, 3/15/99 2,654
5,700 Sears Credit Account Master Trust II,
Series 1994-1, Class A, 7.00%, 8/15/00 5,878
4,800 Standard Credit Card Trust I, Series 1993-3,
Credit Card Participation Certificates,
Class A, 5.50%, 1/07/99 4,723
-------
26,793
-------
CORPORATE BONDS 28.1%
1,500 BankAmerica Subordinated Notes,
10.00%, 2/01/03 1,792
1,000 Bankers Trust - NY, Subordinated Debentures,
9.50%, 6/14/00 1,117
700 Bank Nova Scotia Subordinated Debentures,
9.00%, 10/01/99 766
1,000 Chase Manhattan Corporation Medium
Term Notes, 8.65%, 2/13/99 1,070
906 Chase Manhattan Corporation Subordinated
Notes, 10.00%, 6/15/99 1,012
Chemical Banking Corporation Subordinated Notes:
1,000 10.375%, 3/15/99 1,123
925 9.75%, 6/15/99 1,029
Chrysler Financial Corporation Debentures:
1,596 10.40%, 8/01/99 1,710
750 13.25%, 10/15/99 922
700 12.75%, 11/01/99 849
2,390 Ford Motor Credit Co. Notes,
5.625%, 12/15/98 2,359
640 Ford Capital B.V. Notes, 9.00%, 8/15/98 687
1,050 General Motors Acceptance Corporation
Notes, 8.00%, 10/01/99 1,110
1,000 General Motors Corporation Debentures,
9.625%, 12/01/00 1,137
2,450 Goldman Sachs Group, L.P. Notes,
6.875%, 9/15/99, (Acquired 10/15/93,
5/13/94; Cost $2,446)<F60> 2,475
1,300 Heller Financial, Inc. Notes, 9.375%, 3/15/98 1,391
1,290 Household Finance Co. Senior Subordinated
Notes, 9.55%, 4/01/00 1,444
International Lease Finance Corporation
Medium Term Notes:
2,000 5.92%, 1/15/98 1,995
500 8.25%, 10/19/98 528
Lehman Brothers Holdings, Inc. Notes:
1,500 8.375%, 2/15/99 1,582
2,000 6.90%, 7/15/99 2,015
1,005 Lehman Brothers, Inc. Senior Subordinated
Notes, 10.00%, 5/15/99 1,112
700 Midland American Capital Corporation
Debentures, 12.75%, 11/15/03 821
MONY Funding, Inc. Debentures:
2,130 8.25%, 10/29/96 2,163
1,325 8.125%, 4/07/97 1,349
1,400 Paine Webber Group, Inc. Senior Notes,
6.25%, 6/15/98 1,388
750 Salomon, Inc. Medium Term Notes,
5.50%, 1/31/98 728
650 The Charles Schwab Corporation Medium
Term Notes, 6.06%, 10/02/00 636
1,731 Security Pacific Corporation Debentures,
9.75%, 5/15/99 1,907
1,250 Smith Barney Holdings, Inc. Notes,
5.50%, 1/15/99 1,222
------
39,439
------
OTHER 3.9%
1,000 Nova Scotia (Province of Canada)
Debentures, 11.50%, 5/15/13 1,158
400 Ontario Province Debentures,
11.75%, 4/25/13 466
St. Louis, Missouri Taxable
Airport Revenue Bonds:
1,800 Series 1993, Lambert-St. Louis
International Airport, 5.30%, 7/01/98 1,764
1,000 Series 1993A, Lambert-St. Louis
International Airport, 5.50%, 7/01/98 984
1,110 Security Pacific Home Equity Loan, Series
1991-2, Class B, 8.15%, 6/15/20 1,128
------
5,500
------
U.S. GOVERNMENT AGENCY AND
AGENCY-BACKED ISSUES 6.1%
Federal Home Loan Mortgage Corporation
Real Estate Mortgage Investment Conduit
Pass-Thru Certificates:
500 Series 1339, Class B, 8.00%, 6/15/99 517
1,000 Series 1289, Class PR, 7.50%, 2/15/03 1,036
1,366 Series 1456, Class LA, 7.50%, 5/15/03 1,396
1,000 Federal Home Loan Mortgage Corporation - Government
National Mortgage Association
Real Estate Mortgage Investment Conduits,
Series 8, Class VB, 7.00%, 4/25/03 1,023
1,200 Federal National Mortgage Association,
Medium Term Bonds, 8.25%, 5/16/05 1,232
Federal National Mortgage Association
Real Estate Mortgage Investment Conduit
Pass-Thru Certificates:
800 Series 1993-23, Class PU, 7.50%, 1/25/00 824
500 Series 1992-73, Class L, 7.50%, 1/25/01 515
2,000 U.S. Department of Veterans Affairs Guaranteed
REMIC Pass-Thru Certificates, Vendee Mortgage
Trust, 1993-1, Class G, 7.00%, 2/15/00 2,051
------
8,594
------
U.S. TREASURY OBLIGATIONS 40.3%
U.S. Treasury Bonds:
2,500 10.75%, 2/15/03 3,198
6,950 11.875%, 11/15/03 9,513
5,400 10.75%, 8/15/05 7,234
U.S. Treasury Notes:
6,750 5.625%, 1/31/98 6,744
29,050 6.75%, 5/31/99 29,967
------
56,656
------
Total Long-Term Investments
(Cost $133,920) 136,982
-------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 1.5%
INVESTMENT COMPANIES 1.5%
10 Financial Square Prime Obligation Fund 10
2,167 Short-Term Investments Co.
Liquid Assets Portfolio 2,167
-------
Total Short-Term Investments
(Cost $2,177) 2,177
-------
Total Investments 99.0%
(Cost $136,097) 139,159
-------
Other Assets, less Liabilities 1.0% 1,358
-------
TOTAL NET ASSETS 100.0% 140,517
=======
<F60>Unregistered Security
See notes to the financial statements.
TAX-EXEMPT INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- --------------
GENERAL OBLIGATION 3.8%
150 Racine, Wisconsin Unified School District,
4.80%, 4/01/01 151
Washington State:
100 6.75%, 10/01/01 108
1,000 6.30%, 9/01/02 1,089
-------
Total General Obligation
(Cost $1,353) 1,348
-------
REVENUE BONDS 7.6%
HOUSING 6.1%
1,000 Saint Charles, Illinois, Industrial
Development - Covington Ct Project,
Mandatory Put 9/01/98, 5.50%, 12/01/09 1,034
1,105 South Dakota Housing Development Authority -
Home Ownership Mortgages, 4.85%, 5/01/01 1,105
-------
2,139
-------
OTHER 0.6%
200 Georgia State Municipal Electric Authority,
4.50%, 1/01/00 200
-------
UNIVERSITY 0.9%
310 New England Education Student Loan
Marketing Corporation, 5.80%, 3/01/02 325
-------
Total Revenue Bonds
(Cost $2,632) 2,664
-------
PREREFUNDED AND ESCROWED
TO MATURITY 72.4%
1,300 Alaska State Housing Finance Corporation,
6.375%, 12/01/12, Prerefunded 12/01/02 1,433
550 Birmingham, Alabama Waterworks and
Sewer, 7.20%, 1/01/19, Prerefunded 1/01/00 616
610 Central Lake County, Illinois Joint Action,
7.00%, 5/01/19, Prerefunded 5/01/00 683
590 Clark County, Nevada School District,
7.625%, 5/01/07, Prerefunded 5/01/00 676
500 Clark County, Nevada School District,
7.65%, 5/01/10, Prerefunded 5/01/00 573
1,000 Convention Center Authority - Rhode
Island Revenue, 6.65%, 5/15/12,
Prerefunded 5/15/01 1,118
1,045 Denver, Colorado City and County School
District No. 1, 6.75%, 12/01/12,
Prerefunded 12/01/02 1,184
1,000 District of Columbia, 8.00%, 6/01/08,
Prerefunded 6/01/98 1,110
475 Farmington, New Mexico, Power Revenue
Bonds, 9.875%, 1/01/13, Prerefunded 7/01/05 650
800 Gadsden East Alabama Medical Clinic -
Baptist Hospital of Gadsden, 7.80%,
11/01/21, Prerefunded 11/01/01 948
1,000 Georgia Municipal Electric Authority Power
Revenue, 8.125%, 1/01/17, Crossover
Refunded 1/01/98 1,093
570 Illinois Education Facilities Authority -
Chicago College of Osteopathic Medicine,
Escrowed to Maturity, 8.75%, 7/01/99 628
2,355 Illinois Education Facilities Authority - Loyola,
7.125%, 7/01/21, Prerefunded 7/01/01 2,692
1,000 Illinois Health Facilities Authority - Swedish -
American Hospital, 7.40%, 4/01/20,
Prerefunded 4/01/00 1,134
1,000 Maricopa County, Arizona, School District
No. 1, Phoenix Elementary,
6.60%, 7/01/03, Prerefunded 7/01/01 1,110
1,000 Maricopa County, Arizona School District
No. 11, Peoria University, 7.00%, 7/01/05,
Prerefunded 7/01/01 1,122
500 Metropolitan Nashville Airport,
7.75%, 7/01/07, Prerefunded 7/01/01 587
870 Michigan State Hospital Financial Authority -
Sister of Mercy Health Corp., 7.50%,
2/15/18, Prerefunded 2/15/01 1,004
1,300 Nevada State,
6.20%, 5/01/04, Prerefunded 5/01/01 1,414
1,000 Philadelphia, Pennsylvania, Regional Port
Authority, Lease Revenue Bonds, 7.15%,
8/01/20, Prerefunded 8/01/00 1,115
1,000 Snohomish County, Washington - Public
Hospital, Stevens Memorial Hospital,
6.85%, 12/01/11, Prerefunded 12/01/01 1,122
1,000 Tucson, Arizona Street and Highway User
Revenue Bonds, Escrowed to Maturity,
9.25%, 7/01/02 1,265
1,005 University of Illinois, Escrowed to Maturity,
6.10%, 10/01/03 1,105
1,000 Wausau, Wisconsin School District, 6.50%,
4/01/10, Prerefunded 4/01/02 1,102
80 Williston, North Dakota, Escrowed to Maturity,
6.00%, 6/01/98 83
------
Total Prerefunded and Escrowed to Maturity
(Cost $25,030) 25,567
------
INSURED BONDS 9.2%
EDUCATION 0.6%
200 Merrillville, Indiana Multi-School Building
Corporation, 6.375%, 7/01/03 218
------
GENERAL OBLIGATION 5.3%
900 Camden, New Jersey, 6.15%, 2/15/00 967
675 Chicago, Illinois, 11.60%, 1/01/01 897
------
1,864
------
PUBLIC FACILITIES & IMPROVEMENTS 3.0%
1,000 Illinois State
6.00%, 7/01/06 1,069
------
WATER AND SEWER 0.3%
100 Pima County, Arizona Sewer
6.20%, 7/01/00 108
------
Total Insured Bonds
(Cost $3,225) 3,259
------
Number Market
of Shares Value
(in thousands) (in thousands)
-------------- --------------
INVESTMENT COMPANIES 5.1%
1,624 Financial Square Tax-Exempt Money Market 1,624
159 Tax-Free Investment Trusts 159
------
Total Investment Companies
(Cost $1,783) 1,783
------
Total Investments 98.1%
(Cost $34,023) 34,621
------
Other Assets, less Liabilities 1.9% 685
------
NET ASSETS 100.0% 35,306
======
See notes to the financial statements.
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
LONG-TERM INVESTMENTS 96.3%
ASSET-BACKED SECURITIES 20.7%
CREDIT CARD RECEIVABLES 20.7%
2,600 Banc One Credit Card Master Trust,
Series 1994-C, Class A, 7.80%, 12/15/00 2,724
14,600 Discover Card Master Trust I, Series 1993-2,
Class A, Credit Card Pass-Thru Certificates,
5.40%, 5/15/99 14,365
8,500 First Chicago Master Trust II, Series 1994-L,
Class A, 7.15%, 2/15/00 8,777
2,600 HFC Private Label Credit Card Master Trust II,
Series 1994-2, Class A, 7.80%, 9/20/03 2,721
9,400 MBNA Master Credit Card Trust, Series 1993-3,
Class A, Asset Backed Certificates,
5.40%, 3/15/99 9,241
14,250 Sears Credit Account Master Trust II,
Series 1994-1, Class A, 7.00%, 8/15/00 14,694
12,375 Standard Credit Card Trust I, Series 1993-3,
Credit Card Participation Certificates,
Class A, 5.50%, 1/07/99 12,176
------
64,698
------
CORPORATE BONDS 35.3%
500 American General Finance Corporation
Medium Term Notes, 9.75%, 9/30/98 532
3,250 BankAmerica Subordinated Notes,
10.00%, 2/01/03 3,883
3,000 Bear Stearns Company Senior Notes,
7.625%, 9/15/99 3,122
2,000 British Telecommunications Pub. Ltd. Co.
Debentures, 9.625%, 2/15/19 2,278
500 Burlington Northern Railroad Company
Equipment Trust Cerificates,
11.85%, 1/15/99 581
525 Chase Manhattan Corporation Medium Term
Notes, 8.65%, 2/13/99 562
4,417 Chase Manhattan Corporation Subordinated
Notes, 10.00%, 6/15/99 4,934
Chemical Banking Corporation
Subordinated Notes:
1,715 10.375%, 3/15/99 1,925
3,952 9.75%, 6/15/99 4,396
Chrysler Financial Corporation Debentures:
6,192 13.25%, 10/15/99 7,615
1,728 12.75%, 11/01/99 2,096
3,468 First Chicago Subordinated Notes,
9.00%, 6/15/99 3,780
Ford Capital B. V. Notes:
1,217 9.375%, 1/01/98 1,298
1,450 9.00%, 8/15/98 1,557
Ford Motor Credit Co. Medium Term Notes:
5,000 8.45%, 12/30/98 5,318
500 8.875%, 6/15/99 542
General Motors Acceptance Corporation
Medium Term Notes:
1,750 5.75%, 12/10/97 1,738
1,250 8.00%, 10/01/99 1,321
1,500 Georgia Pacific Corporation Debentures,
9.50%, 2/15/18 1,565
8,600 Goldman Sachs Group, L.P. Notes, 6.875%,
9/15/99 (Acquired 8/18/93, 10/15/93,
5/13/94; Cost $8,639) <F61> 8,687
1,300 GTE Florida Inc. Bonds,
9.625%, 4/01/30 1,377
8,990 Heller Financial, Inc. Debentures,
9.375%, 3/15/98 9,617
2,300 Household Finance Corporation Debentures,
9.625%, 7/15/00 2,595
3,500 International Lease Finance Corporation
Medium Term Notes, 9.82%, 12/14/98 3,853
2,495 Lehman Brothers Holdings Inc. Debentures,
8.875%, 11/01/98 2,657
1,700 Lehman Brothers Holdings Inc. Notes,
6.90%, 7/15/99 1,713
6,060 Lehman Brothers, Inc. Debentures,
10.00%, 5/15/99 6,705
3,479 Midland American Capital Corporation
Debentures, 12.75%, 11/15/03 4,078
5,050 MONY Funding, Inc. Debentures,
8.125%, 4/07/97 5,143
1,700 NCNB Corp. Bonds,
10.20%, 7/15/15 2,206
1,000 Deseret Gn &Trans Cooperative,
9.375%, 1/02/11 1,054
2,416 Pacific Gas & Electric Corporation
Eurodollar Debentures, 12.00%, 1/09/00 2,568
2,800 Salomon, Inc. Medium Term Notes,
5.50%, 1/31/98 2,719
The Charles Schwab Corporation Medium
Term Notes:
2,000 5.84%, 9/30/99 1,955
2,250 5.90%, 10/01/99 2,204
800 Tennessee Gas Pipeline Co. Debentures,
6.00%, 12/15/11 703
1,200 Westvaco Corporation Debentures,
10.125%, 6/01/19 1,398
-------
110,275
-------
OTHER 2.1%
1,700 Italy (Republic of) Debentures,
6.875%, 9/27/23 1,566
840 New Jersey Economic Development
Authority, 7.75%, 6/01/01 865
1,620 Ontario Province Debentures, 11.75%, 4/25/13 1,888
1,800 Quebec Province Bonds, 11.00%, 6/15/15 2,129
-------
6,448
-------
U.S. GOVERNMENT AGENCY AND
AGENCY-BACKED ISSUES 3.2%
500 Federal Home Loan Mortgage Corporation
Guaranteed Real Estate Mortgage Investment
Conduit Pass-Thru Certificates, Series 1169,
Class D, 7.00%, 5/15/21 505
33 Federal Home Loan Mortgage Corporation
Multiclass Mortgage Participation
Certificates, Series 1259, Class IC, Interest
Only, 1007.05%, 10/15/05 424
162 Federal Home Loan Mortgage Corporation
Participation Certificates, 7.50%, 4/01/07 162
3900 Federal National Mortgage Association
Debentures, 9.50%, 11/10/20 4163
Federal National Mortgage Association
Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru Certificates:
500 Series 1989-90, Class E, 8.70%, 12/25/19 523
456 Series 1990-72, Class A, 9.00%, 7/25/20 470
538 Series 1990-72, Class B, 9.00%, 7/25/20 589
Federal National Mortgage Association
Guaranteed Real Estate Mortgage Investment
Conduit Stripped Mortgage-Backed Securities:
320 Series 1991-94, Class H, Principal Only,
9/25/97 221
11 Series 1992-29, Class K, Interest Only,
977.92%, 11/25/00 197
25 Series 1992-145, Class N, Interest Only,
1010.06%, 1/25/06 728
1,300 Series 1989-39, Class C, Principal Only,
6/25/17 1,199
Federal National Mortgage Association
Pass-Thru Certificates:
646 7.50%, 8/01/07 658
197 7.75%, 6/01/08 201
------
10,040
------
U.S. TREASURY OBLIGATIONS 35.0%
U.S. Treasury Bonds:
4,500 10.75%, 2/15/03 5,756
68,900 9.25%, 2/15/16 91,120
11,950 U.S. Treasury Notes,
6.75%, 5/31/99 12,327
-------
109,203
-------
Total Long-Term Investments
(Cost $287,435) 300,664
-------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 2.1%
INVESTMENT COMPANIES 2.1%
11 Financial Square Prime Obligation Fund 11
6,457 Short-Term Investments Co.
Liquid Assets Portfolio 6,457
-------
Total Short-Term Investments (Cost $6,468) 6,468
-------
Total Investments 98.4% (Cost $293,903) 307,132
-------
Other Assets, less Liabilities 1.6% 5,017
-------
TOTAL NET ASSETS 100.0% 312,149
=======
<F61>Unregistered Security
See notes to the financial statements.
SHORT-TERM BOND MARKET FUND
INTERMEDIATE BOND MARKET FUND
TAX-EXEMPT INTERMEDIATE BOND FUND
BOND IMMDEX/TM FUND
NOTES TO THE FINANCIAL STATEMENTS
1.ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988, as
a Wisconsin Corporation and is registered as an open-end management investment
company under the Investment Company Act of 1940. The Short-Term Bond Market,
Inter me di ate Bond Market, Tax-Exempt Intermediate Bond and Bond IMMDEX/TM
Funds (the "Funds") are separate, diversified investment portfolios of the
Company. The Short-Term Bond Market Fund and Bond IMMDEX/TM Fund commenced
operations on Dec ember 29, 1989; the Intermediate Bond Market Fund commenced
operations on January 5, 1993; and the Tax-Exempt Inter mediate Bond Fund
commenced operations on February 8, 1993.
The costs, in thousands, incurred in connection with the organiza tion,
initial registration and public offering of shares aggregating $44, $14, $11 and
$46 for the Short-Term Bond Market, Inter me di ate Bond Market, Tax-Exempt
Intermediate Bond and Bond IMMDEX/TM Funds, respectively, have been paid by the
Funds. These costs are being amortized over the period of benefit, but not to
exceed sixty months from each Fund's commencement of operations.
The Company has issued two classes of Fund shares in each of the Funds:Series
A and Series Institutional. The Series A shares are subject to a 0.25%
shareowner service fee and to an initial sales charge imposed at the time of
purchase, in accordance with the Funds' prospectus. The maximum sales charge is
2% of the offering price or 2.08% of the net asset value. Each class of shares
for each Fund has identical rights and privileges except with respect to
shareowner organization fees paid by Series A shares, voting rights on matters
affecting a single class of shares and the exchange privileges of each class of
shares.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a)Investment Valuation - Securities which are traded on a recognized exchange
are valued at the last sale price on the securities exchange on which such
securities are primarily traded or at the last sale price on the national
securities market. Exchange-traded securities for which there were no
transactions are valued at the current bid prices. Securities traded on only
over-the-counter markets are valued on the basis of closing over-the-counter bid
prices. Instruments with a remaining maturity of 60 days or less are valued on
an amortized cost basis which approx i mates market value. Securities for which
quotations are not readily available and other assets are valued at fair value
as deter mined by the investment adviser under the supervision of the Board of
Directors.
b)Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied to date with the provisions of the Internal
Revenue Code available to regulated investment companies and intend to continue
to so comply in future years.
c)Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, admini stra tion and
certain shareowner service fees. Expenses that are not directly attributable to
a portfolio are typically allocated among the Company's portfolios in proportion
to their respective net assets, number of shareowner accounts or net sales,
where applicable. Net investment income other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative net asset value of outstanding shares (or the
value of dividend-eligible shares, as appropriate) of each class of shares at
the beginning of the day (after adjusting for the current day's capital share
activity of the respective class).
d)Distributions to Shareowners - For the period ended April 30, 1995, dividends
from net investment income of the Short-Term Bond Market, Intermediate Bond
Market and Tax-Exempt Inter mediate Bond Funds were declared daily and paid
monthly. Dividends from net investment income of the Bond IMMDEX/TM Fund were
declared and paid quarterly. Effective May 1, 1995, net investment income
dividends for the Funds are declared and paid monthly. For the Bond IMMDEX/TM
Fund, net investment income for the month of April was distributed to
shareowners in the month of April. Distributions of net realized capital gains,
if any, will be declared at least annually.
e)Unregistered Security - The Intermediate Bond Market and Bond IMMDEX/TM Funds
own a certain investment security which is unregistered and thus restricted to
resale. This security is valued by the Funds after giving due consideration to
pertinent factors including recent private sales, market conditions and the
issuer's financial per form ance. Where future disposition of this security
requires registration under the Securities Act of 1933, the Funds have the right
to include their security in such registration, generally without cost to the
Funds. The Funds have no right to require registration of unregistered
securities.
f)Other - Investment and shareowner transactions are recorded no later than the
first business day after the trade date. The Funds determine the gain or loss
realized from investment transactions by comparing the original cost of the
security lot sold with the net sale proceeds. Interest income is recognized on
an accrual basis. Discounts and premiums on bonds are amortized over the life of
the respective bond. Generally accepted accounting principles require that
permanent financial reporting and tax differences be reclassified to capital
stock.
3.INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the year ended October 31, 1995, were
as follows:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BONDFUND FUND
------------ ------------ ----------- ---------
Purchases:
U.S. Government $50,654 $64,976 - $77,597
Other 94,429 54,076 $19,445 71,413
Sales:
U.S. Government 44,085 40,663 - 71,901
Other 81,326 26,908 12,877 37,744
At October 31, 1995, gross unrealized appreciation and depreciation of
investments for federal income tax purposes, in thousands, were as follows:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BONDFUND FUND
----------- ----------- ----------- ---------
Appreciation $1,587 $3,415 $ 657 $15,130
(Depreciation) (968) (353) (61) (1,962)
-------- -------- ------- ---------
Net unrealized
appreciation on
investments $ 619 $3,062 $ 596 $13,168
====== ====== ===== =======
At October 31, 1995, the cost of investments, in thousands, for federal income
tax purposes was $140,209, $136,097, $34,025 and $293,964 for the Short-Term
Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond and Bond
IMMDEX/TM Funds, respectively. At October 31, 1995, the Short-Term Bond Market,
Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds had accumulated
net realized capital loss carryovers, in thousands, of $1,248, $1,266 and $140,
respectively, expiring in 2002. The Short-Term Bond Market, Intermediate Bond
Market and Bond IMMDEX/TM Funds had accumulated net realized capital loss
carryovers, in thousands, of $189, $568 and $987, respectively, expiring in
2003. For the year ended October 31, 1995, the Tax-Exempt Intermediate Bond Fund
utilized, in thousands, capital loss carryovers of $10. To the extent each Fund
realizes future net capital gains, taxable distributions to its respective
shareowners will be offset by any unused capital loss carryover.
<TABLE>
4.CAPITAL SHARE TRANSACTIONS
On January 9, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective January 9,
1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares. Transactions in capital
shares for the Funds, in thousands, were as follows:
<CAPTION>
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
-------------------- ------------------ ------------------ -----------------
Amount Shares Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PERIOD FROM JAN. 10, TO
OCT. 31, 1995:
Series A shares:
Reclassification of
previous class $ 113,766 11,467 $ 90,367 9,487 $ 28,273 2,909 $ 250,315 9,893
Exchange out to Series
Institutional shares (67,630) (6,818) (82,619) (8,669) (21,916) (2,255) (236,263) (9,338)
Shares sold 10,062 985 5,347 537 2,477 246 8,406 311
Shares issued to owners
in reinvestment
of dividends 1,889 186 257 25 202 20 674 24
Shares redeemed (11,995) (1,179) (2,445) (247) (1,682) (167) (2,814) (104)
--------- ------- ------- ----- ------- ----- ------- -----
Net increase $ 46,092 4,641 $ 10,907 1,133 $ 7,354 753 $ 20,318 786
======== ===== ====== ===== ====== ===== ======= =====
Series Institutional shares:
Exchange in from
Series A shares $ 67,630 6,818 $ 82,619 8,669 $ 21,916 2,255 $ 236,263 9,338
Shares sold 35,067 3,449 50,608 5,053 7,707 762 55,322 2,049
Shares issued to owners
in reinvestment
of dividends 3,077 302 3,251 325 328 33 12,580 467
Shares redeemed (13,589) (1,336) (14,172) (1,422) (3,554) (354) (38,641) (1,421)
-------- ------- -------- ------- ------- ----- -------- -------
Net increase $ 92,185 9,233 $122,306 12,625 $ 26,397 2,696 $ 265,524 10,433
======== ======= ======== ======= ======= ===== ======== =======
PERIOD FROM NOV. 1, 1994 TO
JAN. 9, 1995:
Previous Class:
Reclassification to
Series A shares $(113,766) (11,467) $ (90,367) (9,487) $(28,273) (2,909) $(250,315) (9,893)
Shares sold 2,785 279 5,535 577 6,094 629 8,531 333
Shares issued to owners
in reinvestment
of dividends 1,409 141 863 90 146 15 3,937 156
Shares redeemed (11,467) (1,153) (2,952) (308) (3,967) (410) (15,327) (600)
-------- ------- ------- ----- ------- ----- -------- -----
Net (decrease) $(121,039) (12,200) $ (86,921) (9,128) $(26,000) (2,675) $(253,174) (10,004)
========== ======== ======== ======= ========= ======= ======== =======
FOR THE YEAR ENDED
OCTOBER 31, 1994:
Shares sold $ 37,720 3,648 $ 45,014 4,469 $ 13,858 1,371 $ 50,075 1,831
Shares issued to owners
in reinvestment
of dividends 6,571 639 2,882 287 681 68 18,402 687
Shares redeemed (57,510) (5,587) (10,681) (1,062) (10,909) (1,090) (41,787) (1,523)
-------- ------- -------- ------- -------- ------- -------- -------
Net increase (decrease) $ (13,219) (1,300) $ 37,215 3,694 $ 3,630 349 $ 26,690 995
========= ======= ======== ======= ======== ======= ========= =======
</TABLE>
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual rates presented below as
applied to each Fund's daily net assets. For the year ended October 31, 1995,
FIRMCO voluntarily waived the following fees, in thousands, by Fund:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
----------- ------------ ------------- ----------
Annual rate 0.60% 0.50% 0.50% 0.30%
Fees waived $436 $238 $128 -
Firstar Trust Company, an affiliate of FIRMCO, serves as custodian, transfer
agent and accounting services agent for the Funds.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, computed daily and
payable monthly, at the annual rate of 0.125% of the Company's first $2 billion
of average aggregate daily net assets, plus 0.10% of the Company's average
aggregate daily net assets in excess of $2 billion. For the year ended October
31, 1995, $96, $81, $22 and $175 of administration fees, in thousands, were
voluntarily waived for the Short Term Bond Market, Intermediate Bond Market,
Tax-Exempt Intermediate Bond and Bond IMMDEX/TM Funds, respectively.
Effective January 9, 1995, the Company entered into Servicing Agreements with
certain Service Organizations, including FIRMCO affiliates, for the Series A
class of shares. The Service Organizations are entitled to receive fees from the
Funds up to the annual rate of 0.25% of the average daily net asset value of the
Series A shares for certain support and/or distribution services to customers of
the Service Organizations who are beneficial owners of Series A shares. These
services may include assisting customers in processing purchase, exchange and
redemption requests; processing dividend and distribution payments from the
Funds; and providing information periodically to customers showing their
positions in Series A shares. Service Organization fees, in thousands, paid by
the Short-Term Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate
Bond and Bond IMMDEX/TM Funds to FIRMCOaffiliates aggregated $79, $17, $12 and
$30, respectively, for the year ended October 31, 1995.
Each Director of the Company who is not affiliated with FIRMCO receives an
annual fee from the Company for service as a Director and is eligible to
participate in a deferred compensation plan with respect to these fees.
Participants in the plan may designate their deferred Director's fees as if
invested in any one of the Portico Funds (with the exception of the MicroCap
Fund) or in 90-day U.S. Treasury bills. The value of each Director's deferred
compensation account will increase or decrease as if it were invested in shares
of the selected Portico Funds or 90-day U.S. Treasury bills. The Funds maintain
their proportionate share of the Company's liability for deferred fees.
Report of Independent Accountants
To the Board of Directors and Shareholders of the Portico Short-Term Bond Market
Fund, the Portico Intermediate Bond Market Fund, the Portico Tax-Exempt
Intermediate Bond Fund and the Portico Bond IMMDEX/TM Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedules of investments, 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 the Portico Short-Term Bond Market
Fund, the Portico Intermediate Bond Market Fund, the Portico Tax-Exempt
Intermediate Bond Fund and the Portico Bond IMMDEX/TM Fund (four of the
portfolios of Portico Funds, Inc. (the "Funds") at October 31, 1995, 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 each
of their financial highlights for the year ended October 31, 1995, and for each
of the other periods indicated, all in conformity with generally accepted
accounting principles. 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 generally accepted auditing standards
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 October 31, 1995 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse
Milwaukee, Wisconsin
November 29, 1995
- -Portico Funds are available through:
- the Portico Funds Center,
- Investment Specialists who are registered representatives of Elan Investment
Services, Inc., a registered broker/dealer, NASD and SIPC member,
- and through selected shareholder organizations.
This report is authorized for distribution only when preceded or accompanied by
a current prospectus.
To Open an Account or Request Information
1-800-982-8909
1-414-287-3710
For Account Balances and Investor Services
1-800-228-1024
1-414-287-3808
Portico Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
------------------------
PORTICO FUNDS
ANNUAL REPORT
October 31, 1995
INSTITUTIONAL CLASS
Balanced Fund
Growth and
Income Fund
Equity
Index Fund
MidCore
Growth Fund
Special
Growth Fund
International
Equity Fund
NOTICE TO INVESTORS
- -Shares of Portico Funds:
- ARE NOT INSURED BY THE
FDIC, the US Government or any
other governmental agency;
- are not bank deposits or obligations
of or guaranteed by Firstar Bank, its parent company or its affiliates;
- are subject to investment risks,
including possible loss of principal; and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and an
independent third-party distributor.
- -Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
DECEMBER 1995
Dear Shareowner:
INVESTMENT REVIEW
Bond and stock market returns posted strong gains during our 1995 fiscal year
with the S&P 500 gaining 26.4% and the Lehman Brothers Government/Corporate
Bond Index up 16.2%. Of particular note, over the past five years ended October
31, 1995, Portico Special Growth and Portico Bond IMMDEX/TM Funds returned 21.2%
and 10.2%, respectively, comfortably exceeding the average return of similarly
invested funds. During 1995, we launched Portico MicroCap Fund, a capital
appreciation fund investing in very small companies.<F63> And, as we look to the
future, we will consider additional new fund offerings and opportunities.
The Portico Fund Family is participating in the secular shift from savings to
investments. With almost $3 billion in Portico assets, an expanding family of
funds designed to meet diverse investor needs and competitive performance
records, we are optimistic about the coming year.
MARKET OUTLOOK
Last December, we accurately forecast a Gross Domestic Product (GDP) slowdown, a
decline in long-term interest rates, and improving price/earnings ratios for
persistent growth companies. This resulted in improved relative and above normal
absolute returns for equity funds and attractive investment results for the
fixed-income market. On the other hand, our expectation for a 3-4% increase in
the 1995 Consumer Price Index (CPI) (with raw material price pressures offset by
subdued wage gains) and increased stock market volatility were overly
pessimistic. As a whole, the favorable investment climate forecast did lead to a
well above average 1995 year for stock and bond returns in general and in the
Portico twin disciplines (structured fixed-income and growth equity) in
particular.
For 1996, our market outlook is predicated on the following economic and
investment trends:
1. LOW NOMINAL GDP AND RESILIENT "REAL ECONOMIC GROWTH". Well into the fifth
year of an economic expansion, we expect 2-3% "real" economic growth and
continued decelerating levels of inflation (the consumption deflator, a good
current market basket index, rose only 1.7% over the past year) combining for
5% nominal growth versus the 10% average during the 1980s.
2. A FEDERAL BUDGET AGREEMENT built on a recalculated CPI, modestly enhanced
economic growth assumptions, and a modest reduction in the growth rate of the
key discretionary spending programs (Medicare/Medicaid).
3. Continued disinflationary productivity gains and expanding pockets of actual
price deflation (technology and industrial commodities) along with the
previously mentioned CPI recalculation will produce 1996 INFLATION OF 1.5-
2.5%.
4. INVESTOR FRIENDLY TAX INITIATIVES for 1996, including a reduction in the
capital gains tax rate (but no indexing), increased estate limits and expanded
IRAs.
5. Continued emergence of the UNITED STATES AS THE "MARKET OF CHOICE" for the
increasingly one market world of global investors.
6. TREASURY BOND YIELDS, WHICH HAVE DECLINED OVER 2% THIS YEAR, WILL AT LEAST
RETEST THE SEPTEMBER 1993 LOW YIELD OF 5.8%. Short-term market yields, which
have only declined about .5%, will fall more dramatically, perhaps by 3% over
the next year. The unusually high inflation-adjusted ("real") yields
currently available, along with multi-economic cycle lows in monetary growth,
suggest a potential downside surprise in economic activity.
7. CORPORATE PROFIT GROWTH WILL DECELERATE steadily with the potential for flat
annualized comparisons during 1996.
8. FOR STOCK PRICES, A MODESTLY ABOVE AVERAGE HISTORICAL RETURN (more than 11%)
with continued outperformance of smaller company shares.
As always, we appreciate your continued confidence in the Portico Family of
Funds and urge you to read the portfolio reviews that follow.
J. Scott Harkness, CFA Mary Ellen Stanek, CFA
Chairman/Chief Investment Officer President
Firstar Investment Research & Management Company
<F63>Average annual total returns ended October 31, 1995 for Portico Special
Growth Fund are as follows:1 yr:25.8%; 3 yrs:14.5%; 5 yrs: 21.2%; Inception
(12/28/89):15.7%. Average annual total returns for the same period for Portico
Bond IMMDEX/TM Fund are:1 yr:16.3%; 3 yrs:8.2%; 5 yrs:10.2%; Inception
(12/29/89):9.4%. In the best interest of investors and to keep the integrity of
the Fund in place, Portico MicroCap Fund closed on December 5, 1995. For more
complete information about Portico Bond IMMDEX/TM Fund, including charges and
expenses, obtain a prospectus by calling the Portico Funds Center at 1-800-982-
8909. Read it carefully before you invest or send money.
BALANCED FUND
Portico Balanced Fund had an outstanding year for the fiscal year ended October
31, 1995, appreciating 19.8%. This rise in market value was due to strong gains
in both the equity and fixed-income component of the portfolio. Specifically,
modest price/earnings ratio expansion and strong corporate profits caused
equities in the Fund to appreciate 24.6%. The bonds in the portfolio had one of
their best 12 month periods, rising 17.2%, as interest rates receded over 1.5%
from last year's highs.
For comparison purposes, over the most recent fiscal year, the S&P 500 Index
increased 26.4%, the Russell Midcap Index increased 23.3%, and the Lehman
Brothers Government/Corporate Bond Index was up 16.2%. Portfolio performance was
lead by a 48.4% gain in financial stock holdings. Outstanding performers in this
sector included Green Tree Financial Corporation, First USA, Inc., The Charles
Schwab Corporation, and MGIC Investment Corporation. Healthcare stocks in the
Fund performed admirably as fears over draconian proposals in Washington never
materialized. Large gainers included health maintenance organizations,
Foundation Health Corporation, Oxford Health Plans, and Healthsource, Inc., as
well as strong appreciation in Cordis Corporation, Columbia/HCA Healthcare
Corporation, and Surgical Care Affiliates, Inc. The only sector that had down
performance for the 12 months was transportation as a couple of our trucking
holdings experienced weak business trends.
On the fixed-income side, we met our goal of tracking and outperforming the
Fund's benchmark, the Lehman Brothers Government/Corporate Bond Index. Overall
fixed-income performance in the Fund can be attributed to added value work in
three broad areas: issue selection, sector allocation, and yield curve
positioning. Overweighted positions in the finance, banking and brokerage
sectors along with our asset-backed exposure contributed to performance. Yield
curve positioning, overweighting the four-year bond and 20-year maturity areas,
also played an important role in Fund performance.
The outlook for the new fiscal year is quite positive predicated on our belief
that inflation will increase only 1-2%, and gross domestic product will slow to
1-2%. We think this economic backdrop will cause interest rates to decline an
additional .5% and provide the fuel for appreciation in both fixed income and
equities. Given a slowdown in corporate profits, the Balanced Fund continues to
emphasize more defensive sectors such as finance and healthcare, while being
underweighted in basic materials and energy. Based on the strong earnings
outlook of the companies in the portfolio and quite reasonable valuations, near
term we do not anticipate any major changes in the Fund's current asset
allocation of 63% equities, 34% fixed income, and 3% money market instruments.
We appreciate your continued support and confidence in Portico Balanced Fund.
R. Bart Wear, CFA
Teresa R. Westman, CFA
Portfolio Managers
Firstar Investment Research &Management Company
PORTFOLIO MANAGER PROFILE
R. Bart Wear, CFA, Senior Vice President and Senior Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) and Teresa R. Westman, CFA,
Senior Vice President and Senior Portfolio Manager co-manage the Fund, Teresa
since its inception on March 30, 1992, and Bart since January 20, 1994. Bart has
been with Firstar since 1983 and has 12 years of investment management
experience. He received his BS from Arizona State University in 1982. Teresa has
been with Firstar since 1987 and has eight years of investment management
experience. Teresa received her BA from Augustana College in 1985 and her MBA
from the University of Chicago in 1991. Bart and Teresa are both Chartered
Financial Analysts.
3/30/92 10/92 10/93 10/94 10/95
------- ----- ----- ----- -----
PORTICO BALANCED FUND 10,000 10,372 11,771 11,662 13,969
LEHMAN BROS.
GOV'T./CORP. BOND INDEX 10,000 10,747 12,212 11,645 13,527
RUSSELL MIDCAPTM INDEX 10,000 10,621 12,936 13,240 16,325
S&P 500 STOCK INDEX 10,000 10,548 12,124 12,593 15,923
This chart assumes an initial investment of $10,000 made on 3/30/92 (inception).
Perform ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Returns shown include the reinvestment of all
dividends and other distributions. Past perform ance is not predictive of future
performance. Investment return and principal value will fluc tuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
-------------------------------------
Since Inception
1 Year 3 Years 3/30/92
------ ------ ------
PORTICO BALANCED FUND 19.8 10.4 9.8
LEHMAN BROTHERS
GOV'T./CORP. BOND INDEX <F64> 16.2 8.0 8.8
RUSSELL MIDCAPTM INDEX <F65> 23.3 15.4 14.6
S&P 500 STOCK INDEX <F66> 26.4 14.7 13.9
<F64>The Lehman Brothers Gov't./Corp. Bond Index is an unmanaged market value
weighted index measuring both principal price changes of, and income provided
by, the underlying universe of securities that comprise the index. Securities
included in the index must meet the following criteria:fixed as opposed to
variable rate; not less than one year to maturity; minimum outstanding par value
of $100 million; and rated investment grade or higher by Moody's, Standard &
Poor's, or Fitch, in that order.
<F65> Russell Midcap/TM Index is defined as the lowest 800 companies in the
Russell 1000 Index, as ranked by total market capitalization. The Russell
MidcapTM Index accurately captures the medium-sized universe of securities.
<F66>The S&P500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS 10/31/95
- ------------------------------------------
COLUMBIA/HCA HEALTHCARE CORPORATION 1.6%
FIRST DATA CORPORATION 1.6%
FOUNDATION HEALTH CORPORATION 1.6%
ALCO STANDARD CORPORATION 1.5%
MBNA CORPORATION 1.3%
Portfolio holdings are subject to change
and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/95
- ------------------------------------------
$126,383,582
GROWTH AND INCOME FUND
During fiscal year 1995, which was characterized by strong equity and bond
markets, Portico Growth and Income Fund's investment performance (25.0%)
outpaced both the Lipper Growth and Income (20.0%) and Equity Income (17.9%)
mutual fund indices (Lipper Analytical Services provides mutual fund performance
analysis). The Fund, however, trailed the return of the S&P 500 Index and the
Wilshire Top 750 Index due to its limited exposure to the technology sector
(technology was the strongest sector of the S&P 500, up 48.5%). The Growth and
Income Fund maintained an average 4% weighting in technology, one-fourth of the
S&P 500 weighting, reflecting the requirement that all securities in the
portfolio provide income.
Additional criteria used to select companies for Portico Growth and Income Fund
are:
- -growth in earnings and dividends per share greater than the average company
as measured by the S&P 500 Stock Index
- -strong balance sheets which enable growth in company operations without
shareowner dilution, as well as the opportunity for share repurchases
- -opportunity for profit margin expansion through productivity improvements
- -management incentives tied to company performance.
During the year, we have increased the Fund's exposure to companies which
benefit from a decline in interest rates, such as Norwest Corporation (banking),
Western National Corp. (insurance) and real estate investment trusts (REITs). We
also purchased and/or added to positions in companies which should demonstrate
steady growth in an environment of modest economic growth (i.e. companies which
generally are immune to the economic cycle). These companies include H&R Block,
Inc. (income tax preparation and on-line services); Service Corporation
International (funeral services); Frontier Corporation (integrated
telecommunications); and Duracell Inc. (alkaline batteries).
Given the strong appreciation in the overall market, many securities were
eliminated or cut-back during the year as they reached our price targets (i.e.
traded at price-to-earnings multiples that exceeded their long-term growth
rates). Sales included holdings such as Colgate-Palmolive Company, American
General Corporation, RR Donnelly & Sons Company, Harcourt General, Inc.,
DillardsDepartment Stores, Inc., and Hercules, Inc.
The outlook for the next six months reflects a "tug-of-war" between lower
interest rates (low inflation and modest economic growth would dictate lower
rates) and decelerating earnings growth for the S&P 500. Key to the Fund's
performance will be investing in companies that can weather slower economic
growth with above-average increases in earnings. By consistently employing the
underlying investment philosophy of Portico Growth and Income Fund mentioned
above, we feel the Fund is well-positioned to achieve these objectives and
benefit long-term investors.
Finally, we are pleased to report that the Fund's lead research analyst, Maya
Bittar, was recently promoted to co-manage the Fund. Maya's investment
experience and her contributions have been instrumental in adding value to the
portfolio.
Marian E. Zentmyer, CFA, CFP
Maya K. Bittar, CFA
Portfolio Managers
Firstar Investment Research & Management Company
PORTFOLIO MANAGER PROFILE
Marian E. Zentmyer, CFA, CFP, Senior Vice President and Senior Portfolio Manager
of Firstar Investment Research & Management Company (FIRMCO) and Maya K. Bittar,
CFA, Vice President and Portfolio Manager co-manage the Fund, Marian since
February 22, 1993, and Maya since October 1, 1995. Marian has been with Firstar
since 1982 and has 17 years of investment manage ment experience. She received
her BA from Stanford University in 1978. Maya has been with Firstar since 1993
and has 3 years of investment management experience. She received her BBA in
1985 and her MBA and MS in 1991from the University of Wisconsin. Marian is a
Chartered Financial Analyst and a Certified Financial Planner. Maya is a
Chartered Financial Analyst.
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95
-------- ----- ----- ----- ----- ----- -----
PORTICO GROWTH AND
INCOME FUND 10,000 9,304 11,688 12,368 13,596 13,846 17,307
WILSHIRE TOP 750 INDEX 10,000 8,722 11,859 13,063 15,055 15,534 19.725
S&P 500 STOCK INDEX 10,000 8,855 11,821 12,999 14,941 15,519 19,622
LIPPER GROWTH &
INCOME INDEX 10,000 8,612 11,499 12,523 14,964 15,437 18,518
LIPPER EQUITY
INCOME INDEX 10,000 8,810 11,480 12,623 15,135 15,462 18,232
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
-------------------------------------
Since Inception
1 Year 3 Years 5 Years 12/29/89
------ ------ ------ --------
PORTICO GROWTH AND INCOME FUND 25.0 11.9 13.2 9.9
WILSHIRE TOP 750 INDEX<F67> 27.0 14.7 17.7 12.4
S&P 500 STOCK INDEX<F68> 26.4 14.7 17.3 12.3
LIPPER GROWTH & INCOME INDEX<F69> 20.0 13.9 16.6 11.1
LIPPER EQUITY INCOME INDEX<F69> 17.9 13.0 15.7 10.8
<F67>The Wilshire Top 750 Index, an unmanaged index, consists of the largest 750
companies in the Wilshire 5000 Stock Index and extends down to approximately the
$1 billion market capitalization level.
<F68>The S&P500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approx i mately
two-thirds of the total market value of all domestic common stocks.
<F69>The Lipper Growth &Income and Equity Income Indices are equally weighted
indices of the 30 largest mutual funds within their respective investment
objective categories, adjusted for the reinvestment of capital gains
distributions and income dividends.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS 10/31/95
- ----------------------------------------
ALCO STANDARD CORPORATION 3.7%
PFIZER, INC. 2.7%
H&R BLOCK, INC. 2.6%
TYCO INTERNATIONAL, LTD. 2.5%
DIEBOLD, INC. 2.5%
Portfolio holdings are subject to change
and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/95
- ----------------------------------------
$205,175,904
EQUITY INDEX FUND
Portico Equity Index Fund seeks to provide investment returns, before Fund
expenses, comparable to the price and yield performance of publicly traded
stocks in the aggregate, as represented by the S&P 500 Index. The Fund does not
use traditional methods of financial and market analysis when making purchase
and sale decisions; rather, the Fund invests primarily in common stocks that
comprise the S&P 500 Stock Index in proportion with their relative
capitalization and sector weightings.
Portico Equity Index Fund's net asset value of $41.08 on October 31, 1995
represents a return of 26.0% for the twelve months then ended, as compared to
the S&P 500's return of 26.4% over the same period.
As we have stated in previous reports, we believe that by applying a
capitalization weighting and sector balancing technique, we will maintain the
Fund's investment portfolio so it reasonably tracks the performance of the S&P
500 Stock Index.
Daniel A. Tranchita, CFA
Portfolio Manager
Firstar Investment Research &Management Company
PORTFOLIO MANAGER PROFILE
Daniel A. Tranchita, CFA, Vice President and Portfolio Manager of Firstar
Investment Research &Management Company (FIRMCO) has managed the Fund since July
1, 1992. Dan has been with Firstar since 1989 and has 6 years of investment
management experience. He received his BAin 1987 and his MBA in 1989 from
Marquette University. Dan is a Chartered Financial Analyst.
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95
-------- ----- ----- ----- ----- ----- -----
PORTICO EQUITY INDEX FUND 10,000 8,854 11,767 12,869 14,644 15,157 19,101
S&P 500 STOCK INDEX 10,000 8,855 11,821 12,999 4,941 15,519 19,622
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
----------------------------------
Since Inception
1 Year 3 Years 5 Years 12/29/89
------ ------- ------- --------
PORTICO EQUITY INDEX FUND 26.0 14.1 16.6 11.7
S&P 500 STOCK INDEX<F70> 26.4 14.7 17.3 12.3
<F70>The S&P500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund will no longer be applied to either the Series A or
Series Institutional shares. The performance for the Series Institutional shares
have been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 HOLDINGS 10/31/95
- ----------------------------------------
GENERAL ELECTRIC COMPANY 2.4%
AT&TCORPORATION 2.2%
EXXON CORPORATION 2.1%
COCA-COLA COMPANY 2.0%
PHILIP MORRIS COMPANIES, INC. 1.6%
Portfolio holdings are subject to change
and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/95
- ----------------------------------------
$156,769,229
MIDCORE GROWTH FUND
Market conditions for growth stocks over the fiscal year ended October 31, 1995
have been quite favorable. Specifically, a decline in interest rates caused
price/earnings ratio expansion, corporate profits increased more than 20% (among
the highest on record in 40 years according to Sanford Bernstein Research), and
cash flow from individuals into equity mutual funds was extremely positive.
In line with this, Portico MidCore Growth Fund's performance for the fiscal year
ended October 31, 1995, while lagging that of the Wilshire Top 750 and the S&P
500, was still attractive at 19.6% (vs. 27.0% and 26.4%, respectively). The
reason the Fund underperformed the indices was largely due to its technology
weighting - which returned 19.5% vs. the S&P 500's 48.5%. In addition, MidCore
Growth Fund's near double weighting in consumer cyclicals (which gained only
14.4%) held back returns.
Over the past twelve months, the Fund increased its capital goods weighting from
7.6% to 10.6%, modestly reduced its weighting in consumer cyclicals and finance,
and increased its exposure to the healthcare industry. Stocks in the portfolio
which performed well during this time period included Microsoft Corporation,
Staples, Inc., MBNA Corporation and Nike, Inc. Companies in the Fund which are
positioned to take advantage of a slower economic environment include CUC
International, Inc., Thermo Electron Corporation, Alco Standard Corporation and
Columbia/HCA Healthcare Corporation. These companies should be able to grow in
this type of environment because they have the financial flexibility which
allows them to make additional acquisitions.
We believe global competitive pricing pressure exists in almost all industries.
In addition, given productivity gains in corporate America over the past year,
we believe operating margins for most companies are at their highest level in a
couple of decades, making profits vulnerable if revenues decelerate. These two
factors have caused us to focus on revenue growth, rather than margin expansion,
for future earnings growth and to focus on companies with dominant market share
and low cost positions. This allows them to more successfully gain market share
at the expense of marginal competitors.
Of Portico MidCore Growth Fund's current top 15 holdings, only one has been in
the best performing sector: technology. We interpret this to mean the portfolio
has a number of securities which have future appreciation potential in front of
them rather than the risk associated with holdings that have done extremely well
and are ultimately vulnerable to slow earnings comparisons or P/E compression.
As a result, we are particularly optimistic about the outlook for Portico
MidCore Growth Fund in 1996.
R. Bart Wear, CFA
Portfolio Manager
Firstar Investment Research &Management Company
PORTFOLIO MANAGER PROFILE
R. Bart Wear, CFA, Senior Vice President and Senior Portfolio Manager of Firstar
Investment Research &Management Company (FIRMCO) has managed the Fund since its
inception on December 29, 1992. Bart has been with Firstar since 1983 and has 12
years of investment management experience. He received his BSfrom Arizona State
University in 1982. Bart is a Chartered Financial Analyst.
12/29/92 10/93 10/94 10/95
-------- ----- ----- -----
PORTICO MIDCORE GROWTH FUND 10,000 10,753 10,813 12,927
WILSHIRE TOP 750 INDEX 10,000 10,951 11,299 14,348
S&P 500 STOCK INDEX 10,000 10,981 11,406 14,422
This chart assumes an initial investment of $10,000 made on 12/29/92
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
----------------------------------
Since Inception
1 Year 12/29/92
------ --------
PORTICO MIDCORE GROWTH FUND 19.6 9.5
WILSHIRE TOP 750 INDEX<F71> 27.0 13.6
S&P 500 STOCK INDEX<F72> 26.4 13.8
<F71>The Wilshire Top 750 Index, an unmanaged index, consists of the largest 750
companies in the Wilshire 5000 Stock Index and extends down to approximately the
$1 billion market capitalization level.
<F72>The S&P500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS 10/31/95
- ----------------------------------------
FIRST DATA CORPORATION 4.0%
ALCO STANDARD CORPORATION 3.9%
COLUMBIA/HCA HEALTHCARE CORPORATION 3.9%
FOUNDATION HEALTH CORPORATION 3.5%
MBNA CORPORATION 3.4%
Portfolio holdings are subject to change
and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/95
- ----------------------------------------
$144,532,801
SPECIAL GROWTH FUND
The economy over the past fiscal year has slowed, allowing for the valuation of
persistent earnings growth companies to increase relative to cyclical companies.
Portico Special Growth Fund's 25.8% return outpaced the Wilshire MidCap 750
benchmark's return of 21.7%. This outperformance was largely aided by strong 4th
quarter results in the HMO sector in which the Fund was overweighted.
In maintaining our investment criteria for the Fund, we continued to add
companies to the portfolio which exhibited the following characteristics:
-long-term, above-average earnings growth
-low debt/capitalization
-high return on equity
-management ownership
New additions to the Fund which fit these criteria included Oxford Health Plans,
The Charles Schwab Corporation, Kohl's Corporation, Mirage Resorts, Inc. and
U.S. Robotics Corporation. (In particular, Kohl's Corporation is a good model
for our buy decision - a retailer that provides exceptional value to consumers
and has a proven growth strategy which should benefit the Fund in an economic
slowdown.) Holdings which were reduced due to high valuations during the fiscal
year included Green Tree Financial Corporation, Advanta Corporation Class B,
Xilinx, Inc., and Parametric Technology Company.
Our outlook for Portico Special Growth Fund remains favorable for the next six
months as we feel the Fund is well positioned to take advantage of an economic
slowdown. We continue to manage the Fund with the same criteria and have the
advantage of additional research staff. Looking ahead, as this economic slowdown
becomes more evident, the patience of sticking with our persistent quality
earnings growth companies will provide an excellent opportunity to reward the
Fund. And as always, we seek to concentrate on those companies that meet or
exceed our growth projections.
J. Scott Harkness, CFA
Joseph J. Docter, CFA
Mark D. Westman, CFA
Todd M. Krieg
Portfolio Managers
Firstar Investment Research &Management Company
PORTFOLIO MANAGER PROFILE
J. Scott Harkness, CFA, Chief Investment Officer of Firstar Investment Research
&Management Company (FIRMCO), Joseph J. Docter, CFA, Senior Vice President and
Senior Portfolio Manager, Mark D. Westman, CFA, CPA, Vice President and
Portfolio Manager, and Todd M. Krieg, Vice President and Portfolio Manager
manage the Fund - Scott and Joe since its inception on December 28, 1989, Mark
since January 1994 and Todd since September 1994. Scott has been with Firstar
for 16 years and has more than 17 years of investment management experience. He
received his BA from the University of Wisconsin in 1977. Joe has been with
Firstar since 1984 and has 11 years of investment management experience. He
received his BBA and his MBA from the University of Wisconsin in 1981 and 1984,
respectively. Mark has been with Firstar for three years and received his BA
from Augustana College in 1985 and his MBA from the University of Chicago in
1993. Todd has been with Firstar for three years and received his BA from
Williams College in 1983 and a JD from Georgetown University in 1989. Scott, Joe
and Mark are all Chartered Financial Analysts.
12/28/89 10/90 10/91 10/92 10/93 10/94 10/95
-------- ----- ----- ----- ----- ----- -----
PORTICO SPECIAL
GROWTH FUND 10.000 8,953 14,346 15,617 18,138 18,641 23,449
WILSHIRE MIDCAP
750 INDEX 10,000 7,606 11,627 12,910 16,167 16,680 20,303
S&P 500 STOCK INDEX 10,000 8,855 11,821 12,999 14,941 15,519 19,622
This chart assumes an initial investment of $10,000 made on 12/28/89
(inception). Perform ance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
----------------------------------
Since Inception
1 Year 3 Years 5 Years 12/28/89
------ ------- ------- --------
PORTICO SPECIAL GROWTH FUND 25.8 14.5 21.2 15.7
WILSHIRE MIDCAP 750 INDEX <F73> 21.7 16.3 21.7 12.9
S&P 500 STOCK INDEX<F74> 26.4 14.7 17.3 12.3
<F73>The Wilshire MidCap 750 Index, an unmanaged index, is an overlay of large
and small company universes and consists of companies 501 to 1250 of the
Wilshire 5000 Stock Index. Market capitalization range of MidCap 750 is from
$450 million to $1.7 billion.
<F74>The S&P 500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS 10/31/95
- ----------------------------------------
OXFORD HEALTH PLANS 2.8%
THE CHARLES SCHWAB CORPORATION 2.4%
LOEWEN GROUP, INC. 2.4%
HEALTHSOURCE, INC. 2.4%
PACIFICARE HEALTH SYSTEMS 2.3%
Portfolio holdings are subject to change
and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/95
- ----------------------------------------
$521,496,734
INTERNATIONAL EQUITY FUND
Portico International Equity Fund seeks capital appreciation through investment
in foreign equity securities of small-to-medium sized companies. The Fund uses a
different approach to investing relative to our actively managed Portico equity
funds. The Fund is comprised of a representative portion of the small-to-medium
sized companies found in the Morgan Stanley Capital International Europe,
Australia and Far East (EAFE) Index. Instead of focusing on the entire index,
the Fund invests in companies with a market capitalization range of $250 million
to $5 billion. We believe this slice of the EAFE Index will allow the Fund to
concentrate on those stocks with the highest growth potential.
The country allocation is weighted by the Gross Domestic Product (GDP) of each
foreign country. This allows the Fund to reduce the overall exposure to Japan
while increasing exposure to other countries such as Germany and France. As of
October 31, 1995, the International Equity Fund owned 776 companies located
throughout Europe and the Pacific Basin. State Street Global Advisors, with over
16 years of international investing experience and $26 billion of international
assets under management, is the sub-advisor and handles the trading for the
Fund. As a result, the Fund can take advantage of reduced trading and
transaction costs.
The structured selection process using GDP weightings and small-to medium-sized
market capitalization ranges will not necessarily produce comparable performance
to the EAFE Index, as has been the case since the Fund began operations on April
28, 1994. Nevertheless, we believe that long-term performance of small- to
medium-sized international firms will provide higher total returns than
investments in large international firms of the EAFE Index.
Investing internationally continues to be an effective strategy to diversify
your portfolio while offering the potential for attractive returns over the long
term.
Daniel A. Tranchita, CFA
Portfolio Manager
Firstar Investment Research &Management Company
PORTFOLIO MANAGER PROFILE
Daniel A. Tranchita, CFA, Vice President and Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) has managed the Fund since its
inception on April 28, 1994. Dan has been with Firstar since 1989 and has 6
years of investment management experience. He received his BAin 1987 and his MBA
in 1989 from Marquette University. Dan is a Chartered Financial Analyst.
4/28/94 10/94 10/95
-------- ----- -----
PORTICO INTERNATIONAL EQUITY FUND 10,000 9,995 9,620
MORGAN STANLEY GDP-WEIGHTED EAFE INDEX 10,000 10,103 10,154
MORGAN STANLEY EAFE INDEX 10,000 10,429 10,390
This chart assumes an initial investment of $10,000 made on 4/28/94 (inception).
Perform ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Returns shown include the reinvestment of all
dividends and other distributions. Past perform ance is not predictive of future
performance. Investment return and principal value will fluc tuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
----------------------------------
Since Inception
1 Year 4/28/94
------ -------
PORTICO INTERNATIONAL EQUITY FUND -3.8 -2.5
GDP EAFE INDEX<F75> 0.5 1.0
EAFE INDEX<F76> -0.4 2.6
<F75>The gross domestic product-weighted Morgan Stanley Capital International
Europe, Australia and Far East Index, ("MSCI GDP EAFE") is an unmanaged index
composed of a sample of companies representative of the market structure of 20
European and Pacific Basin countries. The GDP EAFE Index seeks to replicate
industry composition of each local market, and a representative sampling of
large, medium and small capitalization companies from each local market.
<F76>The MSCI EAFE Index is the most recognized international index and is
weighted by market capitalization.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund will no longer be applied to either the Series A or
Series Institutional shares. The performance for the Series Institutional shares
have been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 COUNTRIES 10/31/95
- ----------------------------------------
JAPAN 34.0%
GERMANY 15.5%
FRANCE 10.5%
GREAT BRITAIN 7.9%
ITALY 7.7%
Portfolio holdings are subject to change
and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/95
- ----------------------------------------
$32,820,158
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
OCTOBER 31, 1995
<CAPTION>
GROWTH AND EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
-------- ---------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost
$104,294, $168,068,
$110,846, $109,839,
$393,397 and $34,597,
respectively) $125,237 $207,586 $156,546 $144,662 $510,669 $ 32,752
Foreign currency (cost $156) - - - - - 159
Income receivable 673 293 255 66 246 66
Capital shares sold 9 172 84 12 91 12
Receivable for securities sold 823 - - 514 10,986 125
Receivable for foreign
currency purchased - - - - - 140
Other assets 16 4 8 10 4 67
------- ------- ------- ------- ------- ------
Total Assets 126,758 208,055 156,893 145,264 521,996 33,321
------- ------- ------- ------- ------- ------
LIABILITIES:
Payable for securities
purchased 277 2,697 - 608 71 266
Payable for foreign
currency purchased - - - - - 140
Payable to affiliates 80 161 57 100 392 58
Accrued expenses and
other liabilities 17 21 67 23 36 37
------- ------- ------- ------- ------- ------
Total Liabilities 374 2,879 124 731 499 501
------- ------- ------- ------- ------- ------
NET ASSETS $126,384 $205,176 $156,769 $144,533 $521,497 $ 32,820
======= ======= ======= ======= ======= =======
NET ASSETS CONSIST OF:
Capital stock $102,869 $156,704 $109,821 $114,781 $347,916 $ 33,840
Undistributed net
investment income (loss) 226 175 245 (1) - 156
Undistributed accumulated
net realized
gains (losses) on:
Investments 2,346 8,779 972 (5,070) 56,309 666
Unrealized net appreciation
(depreciation) on:
Investments 20,943 39,518 45,700 34,823 117,272 (1,845)
Futures contracts - - 31 - - -
Foreign currency - - - - - 3
------- ------- ------- ------- ------- -------
Total Net Assets $126,384 $205,176 $156,769 $144,533 $521,497 $ 32,820
======== ======== ======== ======== ======== ========
SERIES A:
Net assets $ 21,832 $ 42,424 $ 18,663 $ 10,105 $ 87,269 $ 1,633
Shares authorized
($.0001 par value) 500,000 500,000 500,000 500,000 500,000 500,000
Shares issued and
outstanding 843 1,536 454 395 2,108 85
Net asset value and
redemption price
per share<F77> $25.89 $27.62 $41.07 $25.58 $41.40 $19.15
======= ======= ======= ======= ======= =======
Maximum offering
price per share<F77> $26.97 $28.77 $42.78 $26.65 $43.13 $19.95
======= ======= ======= ======= ======= =======
SERIES INSTITUTIONAL:
Net assets $104,552 $162,752 $138,106 $134,428 $434,228 $ 31,187
Shares authorized
($.0001 par value) 500,000 500,000 500,000 500,000 500,000 500,000
Shares issued and
outstanding 4,036 5,891 3,362 5,250 10,470 1,625
Net asset value,
redemption price and
offering price
per share<F77> $25.90 $27.63 $41.08 $25.61 $41.47 $19.19
======= ======= ======= ======= ======= =======
<FN>
<F77>Amounts may not recalculate due to rounding.
See notes to the financial statements.
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS, PART 1
(AMOUNTS IN THOUSANDS)
BALANCED FUND GROWTH AND INCOME FUND
--------------- ----------------
YEAR ENDED OCT. 31, YEAR ENDED OCT. 31,
------------------- ------------------
1995 1994 1995 1994
---- ---- ---- ----
OPERATIONS:
Net investment income (loss) $ 2,444 $ 1,817 $ 2,975 $ 3,075
Net realized gain (loss) on:
Investments 3,757 (1,339) 8,861 4,230
Foreign currency - - - -
Change in unrealized
appreciation (depreciation) on:
Investments 14,596 (1,391) 28,643 (4,285)
Foreign currency - - - -
------- ------- ------- -------
Net increase (decrease) in
net assets resulting from
operations 20,797 (913) 40,479 3,020
------ ----- ------ -----
CAPITAL SHARE TRANSACTIONS:
Shares sold 51,996 28,851 39,149 34,645
Shares issued to owners in
reinvestment of dividends 2,325 1,738 6,778 6,597
----- ----- ----- -----
54,321 30,589 45,927 41,242
Shares redeemed (41,011) (15,322) (38,029) (33,938)
-------- -------- -------- --------
Net increase 13,310 15,267 7,898 7,304
------ ------ ----- -----
DISTRIBUTIONS TO SHAREOWNERS<F78>:
From net investment income (540) (1,796) (925) (2,975)
From net realized gains - - (4,244) (4,000)
----- ------ ------- -------
(540) (1,796) (5,169) (6,975)
----- ------- ------- -------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS<F78>:
From net investment income (285) - (374) -
----- ------- ----- -------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS<F78>:
From net investment income (1,555) - (1,711) -
From net realized gains - - - -
------ ------ ------ -------
(1,555) - (1,711) -
------- ------- ------- --------
TOTAL INCREASE IN NET ASSETS 31,727 12,558 41,123 3,349
NET ASSETS:
Beginning of period 94,657 82,099 164,053 160,704
------ ------ ------- -------
End of period (including
undistributed net
investment income
(loss) of $226, $146,
$175, $165, $245,
$149, $(1), $50, $0,
$0, $156 and
$43, respectively) $126,384 $94,657 $205,176 $164,053
======= ======= ======= =======
STATEMENT OF CHANGES IN NET ASSETS, PART 2
(AMOUNTS IN THOUSANDS)
EQUITY INDEX FUND MIDCORE GROWTH FUND
------------------- ---------------
YEAR ENDED OCT. 31, YEAR ENDED OCT. 31,
------------------- ------------
1995 1994 1995 1994
---- ---- ---- ----
OPERATIONS:
Net investment income (loss) $ 2,949 $ 2,017 $ 145 $ 305
Net realized gain (loss) on:
Investments 1,377 338 2,657 (4,766)
Foreign currency - - - -
Change in unrealized appreciation
(depreciation) on:
Investments 26,047 1,004 20,823 4,961
Foreign currency - - - -
------ ------ ------ ------
Net increase (decrease) in
net assets
resulting from operations 30,373 3,359 23,625 500
------ ----- ------ ---
CAPITAL SHARE TRANSACTIONS:
Shares sold 43,586 44,189 49,755 45,282
Shares issued to owners in
reinvestment of dividends 2,893 1,769 222 214
----- ----- --- ---
46,479 45,958 49,977 45,496
Shares redeemed (24,547) (23,637) (42,006) (17,031)
-------- -------- -------- --------
Net increase 21,932 22,321 7,971 28,465
------ ------ ----- ------
DISTRIBUTIONS TO SHAREOWNERS<F78>:
From net investment income (731) (1,937) (137) (235)
From net realized gains (201) - - -
----- ------- ----- -----
(932) (1,937) (137) (235)
----- ------- ----- -----
DISTRIBUTIONS TO SERIES A
SHAREOWNERS<F78>:
From net investment income (226) - (1) -
----- ------ --- -----
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS<F78>:
From net investment income (1,941) - (122) -
From net realized gains - - - -
----- ------ ----- -----
(1,941) - (122) -
------- ------ ----- -----
TOTAL INCREASE IN NET ASSETS 49,206 23,743 31,336 28,730
NET ASSETS:
Beginning of period 107,563 83,820 113,197 84,467
------- ------ ------- ------
End of period (including
undistributed net
investment income
(loss) of $226, $146,
$175, $165, $245,
$149, $(1), $50, $0, $0,
$156 and $43, respectively) $156,769 $107,563 $144,533 $113,197
======= ======= ======= =======
STATEMENT OF CHANGES IN NET ASSETS, PART 3
(AMOUNTS IN THOUSANDS)
INTERNATIONAL
SPECIAL GROWTH FUND EQUITY FUND
-------------------- -------------
APRIL 28,
YEAR ENDED 1994
OCT. 31, YEAR ENDED THROUGH
----------------- OCT. 31, OCT. 31,
1995 1994 1995 1994
---- ---- ---- ----
OPERATIONS:
Net investment income (loss) $ (148) $ 476 $ 165 $ 43
Net realized gain (loss) on:
Investments 57,101 6,275 463 8
Foreign currency - - 225 (28)
Change in unrealized
appreciation (depreciation) on:
Investments 49,078 4,233 (1,826) (19)
Foreign currency - - 1 2
------ ------ ------ ------
Net increase (decrease) in
net assets
resulting from operations 106,031 10,984 (972) 6
------- ------ ----- ------
CAPITAL SHARE TRANSACTIONS:
Shares sold 130,385 209,100 12,055 24,430
Shares issued to owners in
reinvestment of dividends 2,330 436 59 -
------- ------- ------ ------
132,715 209,536 12,114 24,430
Shares redeemed (110,262) (171,571) (2,015) (680)
--------- --------- ------- -----
Net increase 22,453 37,965 10,099 23,750
------ ------ ------ ------
DISTRIBUTIONS TO SHAREOWNERS<F78>:
From net investment income - (495) (55) -
From net realized gains (2,526) - (8) -
------- ----- ---- ------
(2,526) (495) (63) -
------- ----- ---- ------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS<F78>:
From net investment income - - - -
------ ------ ------ ------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS<F78>:
From net investment income - - - -
From net realized gains (45) - - -
---- ---- ----- -----
(45) - - -
---- ---- ----- -----
TOTAL INCREASE IN NET ASSETS 125,913 48,454 9,064 23,756
NET ASSETS:
Beginning of period 395,584 347,130 23,756 -
------- ------- ------ ------
End of period (including
undistributed
net investment income
(loss) of $226, $146,
$175, $165, $245,
$149, $(1), $50, $0, $0,
$156 and $43, respectively) $521,497 $395,584 $32,820 $23,756
======= ======= ======= =======
<F78>On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995, Institutional
shareowners exchanged their Series A shares for the Funds' Institutional series
shares. Distributions to shareowners from net investment income and net realized
gains reflect activity for the Funds for the period November 1, 1994 through
January 9, 1995 and for each Fund's respective class of shares for the period
from January 10, 1995 through October 31, 1995.
See notes to the financial statements.
FINANCIAL HIGHLIGHTS, PART 1
BALANCED FUND
------------------------------------------------------
Year
ended
October 31, Year ended March 30,
1995<F82> October 31, 1992<F79>
through
Series Series ----------------- Oct. 31,
A Institutional 1994 1993 1992
------ ------------- ---- ---- ----
Per Share Data:
Net asset value,
beginning of period $22.10 $22.10 $22.76 $20.49 $20.00
Income from investment
operations:
Net investment income 0.49 0.53 0.44 0.47 0.28
Net realized and
unrealized gains
(losses) on securities 3.77 3.78 (0.66) 2.27 0.44
---- ---- ------ ---- ----
Total from investment
operations 4.26 4.31 (0.22) 2.74 0.72
---- ---- ------ ---- ----
Less distributions:
Dividends from net
investment income (0.47) (0.51) (0.44) (0.47) (0.23)
Distributions from
capital gains - - - - -
----- ----- ------ ------ ------
Total distributions (0.47) (0.51) (0.44) (0.47) (0.23)
------ ------ ------ ------ ------
Net asset value,
end of period $25.89 $25.90 $22.10 $22.76 $20.49
====== ====== ====== ====== ======
Total return<F83><F84> 19.55% 19.79% (0.93)% 13.49% 3.72%
Supplemental data and
ratios:
Net assets, in
thousands,
end of period $21,832 $104,552 $94,657 $82,099 $45,653
Ratio of net expenses
to average net
assets<F85> 0.94% 0.75% 0.75% 0.75% 0.75%
Ratio of net
investment income
to average net
assets<F85> 2.05% 2.24% 2.03% 2.24% 2.48%
Portfolio turnover
rate<F86> 61.87% 61.87% 59.77% 71.60% 29.04%
FINANCIAL HIGHLIGHTS, PART 2
GROWTH AND INCOME FUND
-----------------------------------------------------------
Year ended
October 31, Dec. 29,
1995<F82> 1989<F79>
------------------- Year ended October 31, through
Series Series ------------------------- Oct. 31,
A Institutional 1994 1993<F80> 1992 1991 1990
---- ------------- ---- ---- ---- ---- ----
Per Share Data:
Net asset value,
beginning of
period $23.09 $23.09 $23.70 $22.27 $21.72 $17.99 $20.00
Income from
investment
operations:
Net investment
income 0.37 0.42 0.43 0.56 0.69 0.79 0.69
Net realized and
unrealized
gains (losses) on
securities 5.14 5.14 (0.03) 1.63 0.56 3.75 (2.05)
---- ---- ------ ---- ---- ---- ------
Total from
investment
operations 5.51 5.56 0.40 2.19 1.25 4.54 (1.36)
---- ---- ---- ---- ---- ---- ------
Less distributions:
Dividends from net
investment income (0.38) (0.42) (0.42) (0.57) (0.70) (0.81) (0.65)
Distributions from
capital gains (0.60) (0.60) (0.59) (0.19) - - -
------ ------ ------ ------ ----- ----- -----
Total distributions (0.98) (1.02) (1.01) (0.76) (0.70) (0.81) (0.65)
------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $27.62 $27.63 $23.09 $23.70 $22.27 $21.72 $17.99
====== ===== ===== ===== ===== ===== =====
Total return<F83><F84>24.75% 25.00% 1.84% 9.93% 5.82% 25.63% (6.96)%
Supplemental data
and ratios:
Net assets, in
thousands,
end of period $42,424 $162,752 $164,053 $160,704 $135,713 $103,414 $65,741
Ratio of net
expenses
to average
net assets<F85> 1.09% 0.90% 0.90% 0.88% 0.75% 0.75% 0.74%
Ratio of net
investment income
to average net
assets<F85> 1.51% 1.70% 1.89% 2.44% 3.16% 3.93% 4.39%
Portfolio turnover
rate<F86> 47.85% 47.85% 56.85% 86.24% 31.25% 28.05% 49.85%
FINANCIAL HIGHLIGHTS, PART 3
EQUITY FUND INDEX
-----------------------------------------------------------
Year ended
October 31, Dec. 29,
1995<F82> 1989<F79>
----------------- Year ended October 31, through
Series Series ------------------------------ Oct. 31,
A Institutional 1994 1993 1992<F81> 1991 1990
- ------------- ---- ---- ---- ---- ----
Per Share Data:
Net asset value,
beginning of
period $33.41 $33.41 $33.04 $29.72 $27.87 $21.63 $25.00
Income from
investment
operations:
Net investment
income 0.70 0.76 0.77 0.75 0.73 0.73 0.59
Net realized and
unrealized
gains (losses)
on securities 7.70 7.71 0.35 3.32 1.86 6.31 (3.41)
---- ---- ---- ---- ---- ---- ------
Total from
investment
operations 8.40 8.47 1.12 4.07 2.59 7.04 (2.82)
---- ---- ---- ---- ---- ---- ------
Less distributions:
Dividends from
net investment
income (0.68) (0.74) (0.75) (0.75) (0.73) (0.74) (0.55)
Distributions from
capital gains (0.06) (0.06) - - (0.01) (0.06) -
------ ------ ----- ----- ------ ------ -----
Total distributions (0.74) (0.80) (0.75) (0.75) (0.74) (0.80) (0.55)
------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $41.07 $41.08 $33.41 $33.04 $29.72 $27.87 $21.63
====== ====== ====== ====== ====== ===== =====
Total return<F83><F84>25.79% 26.02% 3.51% 13.79% 9.36% 32.90%(11.46)%
Supplemental data
and ratios:
Net assets, in
thousands, end
of period $18,663 $138,106 $107,563 $83,820 $81,070 $51,481 $35,569
Ratio of net
expenses
to average
net assets<F85> 0.66% 0.46% 0.50% 0.50% 0.50% 0.50% 0.49%
Ratio of net
investment income
to average net
assets<F85> 2.14% 2.34% 2.38% 2.32% 2.48% 2.82% 3.01%
Portfolio turnover
rate<F86> 4.61% 4.61% 13.28% 13.78% 5.50% 1.38% 9.09%
FINANCIAL HIGHLIGHTS, PART 4
MIDCORE GROWTH FUND
---------------------------------------------------
Dec. 29,
October 31, 1995<F82> Year 1992<F79>
----------------------- ended through
Series Series Oct. 31, Oct. 31,
A Institutional 1994 1993
- ------------- ---- ----
Per Share Data:
Net asset value,
beginning of period $21.47 $21.47 $21.40 $20.09
Income from investment
operations:
Net investment income (0.02) 0.03 0.06 0.09
Net realized and
unrealized
gains (losses)
on securities 4.16 4.16 0.06 1.32
---- ---- ---- ----
Total from investment
operations 4.14 4.19 0.12 1.41
---- ---- ---- ----
Less distributions:
Dividends from net
investment income (0.03) (0.05) (0.05) (0.10)
Distributions from
capital gains - - - -
----- ----- ----- -----
Total distributions (0.03) (0.05) (0.05) (0.10)
------ ------ ------ ------
Net asset value, end
of period $25.58 $25.61 $21.47 $21.40
====== ====== ====== ======
Total return<F83><F84> 19.31% 19.55% 0.56% 7.53%
Supplemental data
and ratios:
Net assets, in
thousands, end
of period $10,105 $134,428 $113,197 $84,467
Ratio of net expenses
to average net
assets<F85> 1.09% 0.90% 0.88% 0.89%
Ratio of net investment
income
to average
net assets<F85> (0.06)% 0.13% 0.30% 0.57%
Portfolio turnover
rate<F86> 49.84% 49.84% 33.24% 46.29%
FINANCIAL HIGHLIGHTS, PART 5
SPECIAL GROWTH FUND
---------------------------------------------------------
Year ended Dec. 28,
October 31, 1995<F82> 1989<F79>
------------------ Year ended October 31, through
Series Series ---------------------------- Oct. 31,
A Institutional 1994 1993 1992<F81> 1991 1990
- ------------- ---- ---- ---- ---- ----
Per Share Data:
Net asset value,
beginning of
period $33.19 $33.19 $32.34 $28.50 $28.05 $17.72 $20.00
Income from
investment operations:
Net investment
income (0.07) 0.00 0.04 0.07 0.17 0.27 0.22
Net realized
and unrealized
gains (losses)
on securities 8.49 8.49 0.85 4.47 2.18 10.34 (2.30)
---- ---- ---- ---- ---- ----- ------
Total from
investment
operations 8.42 8.49 0.89 4.54 2.35 10.61 (2.08)
---- ---- ---- ---- ---- ----- ------
Less distributions:
Dividends from
net investment
income - - (0.04) (0.08) (0.18) (0.28) (0.20)
Distributions
from capital
gains (0.21) (0.21) - (0.62) (1.72) - -
------ ------ ----- ------ ------ ----- -----
Total
distributions (0.21) (0.21) (0.04) (0.70) (1.90) (0.28) (0.20)
------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $41.40 $41.47 $33.19 $32.34 $28.50 $28.05 $17.72
====== ====== ====== ====== ====== ====== ======
Total return<F83><F84>25.56% 25.79% 2.77% 16.15% 8.86% 60.23%(10.47)%
Supplemental data
and ratios:
Net assets, in
thousands, end
of period $87,269 $434,228 $395,584$347,130 $205,207 $96,017 $39,179
Ratio of net
expenses
to average net
assets<F85> 1.09% 0.90% 0.89% 0.88% 0.76% 0.75% 0.74%
Ratio of net
investment income
to average net
assets<F85> (0.19)% 0.00% 0.13% 0.24% 0.65% 1.10% 1.41%
Portfolio turnover
rate<F86> 79.25% 79.25% 69.74% 58.80% 31.94% 48.39% 41.79%
FINANCIAL HIGHLIGHTS, PART 6
INTERNATIONAL EQUITY FUND
--------------------------------------
April 28,
Year ended 1994<F79>
October 31, 1995<F82> through
---------------------------- Oct. 31,
Series A Series Institutional 1994
-------- -------------------- ----
Per Share Data:
Net asset value,
beginning of period $19.99 $19.99 $20.00
Income from investment operations:
Net investment income 0.08 0.12 0.04
Net realized and unrealized
gains (losses) on securities (0.87) (0.87) (0.05)
Total from investment operations (0.79) (0.75) (0.01)
Less distributions:
Dividends from net
investment income (0.04) (0.04) -
Distributions from capital gains (0.01) (0.01) -
Total distributions (0.05) (0.05) -
Net asset value, end of period $19.15 $19.19 $19.99
Total return<F83><F84> (3.95)% (3.75)% (0.05)%
Supplemental data and ratios:
Net assets, in thousands,
end of period $1,633 $31,187 $23,756
Ratio of net expenses
to average net assets<F85> 1.70% 1.50% 1.49%
Ratio of net investment income
to average net assets<F85> 0.46% 0.66% 0.44%
Portfolio turnover rate<F86> 15.12% 15.12% 6.55%
<F79>Commencement of operations.
<F80>Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F81>Effective February 3, 1992, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F82>On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995, Institutional
shareowners exchanged their Series A shares for the Funds' Institutional series
shares. For the year ended October 31, 1995, the Financial Highlights ratios of
net expenses to average net assets, ratios of net investment income to average
net assets, total return and the per share income from investment operations and
distributions are presented on a basis whereby the Funds' net investment income,
net expenses, net realized and unrealized gains (losses) and distributions for
the period November 1, 1994, through January 9, 1995, were allocated to each
class of shares based upon the relative net assets of each class of shares as of
the close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for the
period January 10, 1995, through October 31, 1995.
<F83>Not annualized for the period ended October 31, 1990, for the Growth and
Income, Equity Index and Special Growth Funds and for the period ended October
31, 1992, for the Balanced Fund and for the period ended October 31, 1993, for
the MidCore Growth Fund and for the period ended October 31, 1994, for the
International Equity Fund.
<F84>The total return does not reflect the 4% front-end sales charge for
Series A.
<F85>Annualized for the period ended October 31, 1990, for the Growth and
Income, Equity Index and Special Growth Funds and for the period ended October
31, 1992, for the Balanced Fund and for the period ended October 31, 1993, for
the MidCore Growth Fund and for the period ended October 31, 1994, for the
International Equity Fund.
<F86>Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to the financial statements.
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 1995
GROWTH EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED AND INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
-------- --------- ------ ------- ------- ------------
INVESTMENT INCOME:
Dividend income:
Domestic $ 411 $ 3,924 $ 3,200 $ 916 $ 1,539 -
Foreign (net of
withholding
taxes of $84) - - - - - $ 538
Interest income:
Domestic 2,897 744 377 393 2,461 87
Foreign - - - - - 2
----- ----- ----- ----- ----- -----
3,308 4,668 3,577 1,309 4,000 627
----- ----- ----- ----- ----- ---
EXPENSES:
Investment advisory
fees 828 1,350 320 956 3,340 431
Administration fees 134 217 156 155 540 35
Shareowner servicing
and accounting costs 99 132 94 71 244 95
Service organization
fees - Series A 37 73 30 17 149 3
Custody fees 56 48 62 37 123 72
Federal and state
registration fees 10 16 19 25 32 34
Professional fees 24 29 27 33 34 40
Reports to shareowners 13 18 6 10 62 46
Amortization of
organization costs 5 1 1 3 2 5
Directors' fees and
expenses 5 5 5 5 5 5
Other 3 7 6 4 11 1
---- ---- ---- ---- ----- ----
Total expenses
before waiver 1,214 1,896 726 1,316 4,542 767
Less: Waiver of
expenses (350) (203) (98) (152) (394) (332)
----- ----- ---- ----- ----- -----
Net Expenses 864 1,693 628 1,164 4,148 435
--- ----- --- ----- ----- ---
NET INVESTMENT
INCOME (LOSS) 2,444 2,975 2,949 145 (148) 192
----- ----- ----- --- ----- ---
REALIZED AND
UNREALIZED
GAIN (LOSS):
Net realized gain
(loss) on:
Investments 3,757 8,861 1,377 2,657 57,101 666
Foreign currency - - - - - (5)
Change in unrealized
appreciation
(depreciation) on:
Investments 14,596 28,643 26,047 20,823 49,078 (1,826)
Foreign currency - - - - - 1
------ ------ ------ ------ ------ ------
Net gain on
investments
and foreign
currency 18,353 37,504 27,424 23,480 106,179 (1,164)
------ ------ ------ ------ ------- -------
NET INCREASE
(DECREASE)
IN NET ASSETS
RESULTING
FROM OPERATIONS $20,797 $40,479 $30,373 $23,625 $106,031 $ (972)
======= ======= ======= ======= ======= =====
See notes to the financial statements.
BALANCED FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market Value
of Shares (in thousands)
-------- ------------
COMMON STOCKS 63.0%
AUTO PARTS 1.0%
5,200 APS Holding Corporation<F87> 107
25,000 AutoZone, Inc. <F87> 619
1,600 Copart, Inc. <F87> 36
19,800 Lear Seating Corporation<F87> 549
-----
1,311
-----
BIO-TECHNOLOGY 0.4%
12,000 Millipore Corporation 424
10,600 Perseptive Biosystems, Inc. <F87> 112
-----
536
-----
BUILDING MATERIALS 0.2%
6,900 Home Depot, Inc. 257
-----
BUSINESS MACHINES & SOFTWARE 0.8%
16,600 Ceridian Corporation<F87> 722
900 Madge Networks N. V. <F87> 38
3,500 Mylex Corporation<F87> 65
1,800 National Instruments Corporation<F87> 34
3,500 Network General Corporation<F87> 145
-----
1,004
-----
BUSINESS SERVICES 4.9%
18,900 H & R Block, Inc. 780
7,100 Danka Business Systems PLC ADR 238
30,061 First Data Corporation 1,988
2,425 FIserv, Inc. <F87> 62
8,100 Franklin Quest Company<F87> 193
26,000 General Motors Corporation - Class E 1,225
5,800 Interim Services, Inc. <F87> 173
29,400 Manpower, Inc. 797
10,900 Medaphis Corporation<F87> 346
8,100 Robert Half International, Inc. <F87> 296
5,500 U.S. Delivery Systems, Inc. <F87> 114
-----
6,212
-----
CAPITAL GOODS 0.4%
10,400 York International Corporation 455
-----
CHEMICALS 0.4%
21,200 Airgas, Inc. <F87> 564
-----
COMMUNICATIONS & MEDIA 2.4%
4,000 Cellstar Corporation<F87> 111
11,400 Infinity Broadcasting Corporation<F87> 371
25,800 Interpublic Group of Companies, Inc. 999
53,300 PanAmSat Corporation<F87> 806
13,600 Reuters Holdings, PLC ADR 755
-----
3,042
-----
COMPUTERS 2.8%
17,200 Bay Networks<F87> 1,139
12,600 Compuware Corporation<F87> 287
1,900 McAfee Associates, Inc. <F87> 111
2,600 Microsoft Corporation<F87> 260
2,000 Parametric Technology Company<F87> 134
33,500 Platinum Technology<F87> 611
3,500 Reynolds & Reynolds - Class A 125
1,800 Softkey International, Inc. <F87> 57
31,100 Sungard Data Systems, Inc. <F87> 855
---
3,579
-----
CONSUMER PRODUCTS 0.5%
23,900 Newell Company 577
-----
CONSUMER SERVICES 0.6%
20,300 Loewen Group, Inc. 813
-----
CONTAINERS 0.2%
11,000 Sealed Air Corporation<F87> 290
-----
DISTRIBUTION 1.5%
21,800 Alco Standard Corporation 1,929
-----
DIVERSIFIED 0.2%
7,600 Kemet Corporation<F87> 262
-----
DRUGS 1.0%
30,200 Elan Corporation, PLC ADR<F87> 1,212
-----
ELECTRICAL EQUIPMENT 1.9%
34,600 AVX Corporation 1,077
28,687 Molex, Inc. - Class A 882
10,800 Vishay Intertechnology, Inc. <F87> 381
-----
2,340
-----
ELECTRONICS 0.9%
16,000 Arrow Electronics, Inc. <F87> $ 812
1,300 Checkpoint Systems, Inc. <F87> 38
5,000 Digi International, Inc. <F87> 134
1,300 Progress Software Corporation<F87> 85
200 SGS-Thomson Microelectronics N.V.<F87> 9
-----
1,078
-----
ENTERTAINMENT & LEISURE 3.0%
41,400 GTECH Holdings Corporation<F87> 1,014
10,900 Hollywood Entertainment Corporation 291
44,800 Mirage Resorts, Inc. <F87> 1,467
5,000 Regal Cinemas, Inc. <F87> 196
17,436 Viacom, Inc. - Class B<F87> 872
-----
3,840
-----
FINANCE COMPANIES 1.3%
1,800 Advanta Corporation - Class B 64
31,800 First USA, Inc. 1,463
3,900 National Data Corporation 103
-----
1,630
-----
FINANCIAL SERVICES 3.4%
6,400 AMBAC, Inc. 270
11,600 Federal National Mortgage Association 1,216
2,100 Green Tree Financial Corporation 56
44,000 MBNA Corporation 1,622
10,800 Quick And Reilly Group, Inc. 257
40,700 The Charles Schwab Corporation 931
-----
4,352
-----
HEALTH CARE SERVICES & SUPPLIES 11.5%
7,100 American Medical Response, Inc. <F87> 205
36,000 Biomet, Inc. <F87> 599
12,450 Cardinal Health, Inc. 640
40,825 Columbia/HCA Healthcare Corporation 2,006
3,600 Cordis Corporation<F87> 398
45,900 Foundation Health Corporation<F87> 1,945
24,100 Health Care & Retirement Corporation<F87> 708
35,212 Health Management Associates, Inc. -
Class A 757
17,400 Healthsource, Inc. <F87> 922
23,000 Lincare Holdings, Inc. <F87> 572
8,500 Medisense, Inc. <F87> 182
7,900 Medpartners, Inc. <F87> 221
6,500 Multicare Companies, Inc. <F87> 122
13,600 Oxford Health Plans<F87> 1,064
12,700 Pacificare Health Systems, Inc. <F87> 924
13,100 Quorum Health Group, Inc. <F87> 281
6,100 Renal Treatment Centers, Inc. <F87> 220
23,800 Surgical Care Affiliates, Inc. 705
16,600 United Healthcare Corporation 882
40,700 Vencor, Inc. <F87> 1,129
-----
14,482
------
HOSPITAL SUPPLIES & SERVICES 0.3%
6,800 Boston Scientific Corporation<F87> 286
2,000 IDEXX Laboratories, Inc. 81
-----
367
-----
HOUSING 1.0%
32,118 Clayton Homes, Inc. 843
6,200 Oakwood Homes Corp. 233
7,800 Toll Brothers, Inc. <F87> 139
---
1,215
-----
INSURANCE 4.1%
23,600 AFLAC, Inc. 962
8,600 Equitable of Iowa Companies 301
11,400 Arthur J. Gallagher & Company 403
17,200 MBIA, Inc. 1,198
26,300 MGIC Investment Corporation 1,496
21,700 Protective Life Corporation 618
5,400 Vesta Insurance Group, Inc. 218
-----
5,196
-----
LODGING 0.2%
9,500 La Quinta Inns, Inc. 245
-----
MACHINERY - AUTOMOTIVE 1.0%
34,100 Varity Corporation<F87> 1,236
-----
MACHINERY - INDUSTRIAL 1.1%
23,700 Thermo Electron Corporation<F87> 1,090
14,100 TriMas Corporation 293
---
1,383
-----
MISCELLANEOUS 0.1%
5,300 Keane, Inc. <F87> 143
-----
OFFICE PRODUCTS 1.0%
9,325 Office Depot, Inc. <F87> 267
3,000 OfficeMax, Inc. <F87> 74
23,650 Staples, Inc. <F87> 630
6,500 Viking Office Products, Inc. <F87> 289
-----
1,260
-----
OIL & GAS DOMESTIC 0.6%
16,000 Enron Corporation 550
11,500 NGC Corporation 104
2,680 Tejas Gas Corporation<F87> 126
-----
780
-----
POLLUTION CONTROL 0.5%
19,600 Browning-Ferris Industries, Inc. 571
-----
PRINTING & PUBLISHING 0.1%
4,200 Banta Corporation 182
-----
PRODUCTION 1.5%
7,000 Dover Corporation 277
25,900 Tyco International, Ltd. 1,573
-----
1,850
-----
RAILROADS 0.7%
11,500 Arnold Industries, Inc. 187
3,000 Burlington Northern Santa Fe 252
5,450 Comair Holdings, Inc. 153
4,584 Fritz Companies, Inc. 160
3,800 Heartland Express, Inc. <F87> 103
1,700 TNT Freightways Corporation 31
-----
886
-----
RESTAURANTS 0.9%
9,750 Apple South, Inc. 200
1,500 DF & R Restaurants, Inc. <F87> 46
5,900 IHOP Corporation<F87> 127
2,500 Landry's Seafood Restaurants Incorporated 34
6,300 Lone Star Steakhouse & Saloon<F87> 243
13,800 Outback Steakhouse, Inc. <F87> 433
-----
1,083
-----
RETAIL 3.6%
400 CompUSA, Inc. <F87> 15
27,400 Consolidated Stores Corporation<F87> 634
12,000 Dept 56, Inc.<F87> 544
3,600 Discount Auto Parts, Inc.<F87> 96
31,685 Dollar General Corporation 776
33,000 General Nutrition Companies, Inc.<F87> 821
24,800 Kohl's Corporation<F87> 1,125
6,600 Lowe's Companies, Inc. 178
3,700 Micro Warehouse, Inc.<F87> 165
13,100 Musicland Stores Corporation<F87> 85
9,100 Sports and Recreation, Inc.<F87> 67
5,200 Trend Lines, Inc. - Class A<F87> 68
-----
4,574
-----
SEMICONDUCTORS 1.4%
9,800 Atmel Corporation<F87> 306
1,400 Burr-Brown Corporation<F87> 46
11,300 Dallas Semiconductor Corporation 240
3,800 Integrated Circuit Systems<F87> 52
2,100 Lattice Semiconductor Corporation<F87> 82
1,800 Linear Technology Corporation 79
12,100 LSI Logic Corporation<F87> 570
600 Maxim Integrated Products, Inc.<F87> 45
3,400 Microchip Technology, Inc.<F87> 135
1,100 SDL, Inc.<F87> 28
5,700 S3 Inc.<F87> 98
2,900 Triquint Semiconductor, Inc.<F87> 66
1,900 VLSI Technology<F87> 45
-----
1,792
-----
TELECOMMUNICATIONS 2.1%
13,000 Aspect Telecommunications Corporation<F87>447
12,400 Boston Technology, Inc.<F87> 171
20,600 Century Telephone Enterprises 597
6,200 Cidco, Inc. <F87> 184
2,300 Comverse Technology<F87> 52
11,300 DSC Communications Corporation<F87> 418
3,300 Pairgain Technologies<F87> 141
500 U.S. Robotics Corporation<F87> 46
19,500 Worldcom, Inc.<F87> 636
-----
2,692
-----
TEXTILES & APPAREL 1.1%
6,000 Gymboree Corporation<F87> 136
15,100 Jones Apparel Group, Inc.<F87> 517
4,400 The Men's Wearhouse, Inc.<F87> 171
8,000 Nike, Inc. - Class B 454
2,200 Oakley Incorporated<F87> 76
----
1,354
-----
TRAVEL & RECREATION 2.3%
53,500 Carnival Corporation - Class A 1,244
30,000 CUC International, Inc.<F87> 1,039
27,400 Promus Hotel Corporation<F87> 603
-----
2,886
-----
TRUCKING 0.1%
3,550 Wabash National Corporation 90
-----
Total Common Stocks
(Cost $60,528) 79,550
------
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
LONG-TERM INVESTMENTS 33.7%
ASSET-BACKED SECURITIES 7.1%
CREDIT CARD RECEIVABLES 7.1%
350 Banc One Credit Card Master Trust
1994-C, Class A, 7.80%, 12/15/00 367
1,000 Capital One Master Trust I, Series
1993-1, Class A, 5.20%, 10/15/98 980
1,700 Discover Card Master Trust I, Series
1993-2, Class A, Credit Card Pass-Thru
Certificates, 5.40%, 5/15/99 1,673
1,150 First Chicago Master Trust I,
Series 1994-L, 7.15%, 2/15/00 1,187
350 HFC Private Label Credit Card Trust,
Series 1994-2, Class A, 7.80%, 9/20/03 366
950 MBNA Master Credit Card Trust,
Series 1993-3, Asset Backed Certificates,
5.40%, 3/15/99 934
1,800 Sears Credit Account Master Trust II,
Class A, Master Trust Certificates,
Series 1994-1, 7.00%, 8/15/00 1,856
CREDIT CARD RECEIVABLES 7.1% (CONT.)
1,650 Standard Credit Card Trust, Series 1993-3,
Credit Card Participation Certificates,
5.50%, 1/07/99 1,623
-----
8,986
-----
CORPORATE BONDS 10.7%
350 Bankamerica Corp. Subordinated Notes,
7.75%, 7/15/02 373
250 Chase Manhattan Corporation Subordinated
Notes, 10.00%, 6/15/99 279
250 Chase Manhattan Corporation Medium Term
Notes, 8.65%, 2/13/99 267
Chemical Banking Corporation
Subordinated Notes:
250 10.375%, 3/15/99 281
750 9.75%, 6/15/99 834
1,050 Chrysler Financial Corporation
Debentures, 13.25%, 10/15/99 1,291
650 Ford Capital B.V. Notes,
9.00%, 8/15/98 698
450 Ford Motor Credit Co. Debentures,
5.625%, 12/15/98 444
350 General Motors Acceptance Corporation
Medium Term Notes, 5.75%, 12/10/97 347
950 Goldman Sachs Group, L.P. Notes, 6.875%,
9/15/99 (Acquired 10/15/93, 5/13/94;
Cost $957) <F88> 960
300 GTE Northwest First Mortgage, Series EE,
9.75%, 10/15/30 321
Heller Financial, Inc. Notes:
750 9.375%, 3/15/98 802
350 7.875%, 11/01/99 368
1,000 Household Finance Corp. Subordinated
Notes, 7.125%, 4/30/99 1,025
1,105 International Lease Finance Corporation
Debentures, 8.35%, 10/01/98 1,169
550 Lehman Brothers Holdings, Inc. Notes,
8.375%, 2/15/99 580
700 Lehman Brothers Holdings, Inc. Senior
Subordinated Notes, 10.00%, 5/15/99 774
1,000 Merrill Lynch Senior Notes,
7.75%, 3/01/99 1,046
150 NCNB Corp. Debentures,
10.20%, 7/15/15 195
350 Salomon, Inc. Medium Term Notes,
5.50%, 1/31/98 340
550 The Charles Schwab Corporation Medium
Term Notes, 5.90%, 10/01/99 539
600 Security Pacific Corp. Debentures,
9.75%, 5/15/99 661
-----
13,594
------
OTHER 0.4%
250 Italy (Republic of) Debentures,
6.875%, 9/27/23 230
250 Quebec Province,
11.00%, 6/15/15 296
-----
526
-----
U.S. GOVERNMENT AGENCY ISSUES 0.6%
350 Federal Home Loan Mortgage Corporation
Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru
Certificates, Series 1169,
Class D, 7.00%, 5/15/21 353
350 Federal National Mortgage Association
Debentures, 9.50%, 11/10/20 374
-----
727
-----
U.S. TREASURY OBLIGATIONS 14.9%
U. S. Treasury Bonds:
1,200 10.75%, 2/15/03 1,535
9,925 9.25%, 2/15/16 13,126
4,000 U. S. Treasury Notes,
6.75%, 5/31/99 4,126
-----
18,787
------
Total Long-Term Investments
(Cost $40,699) 42,620
------
SHORT-TERM INVESTMENTS 2.4%
INVESTMENT COMPANIES 2.4%
10 Financial Square Prime Obligation Fund$ 10
3,057 Short-Term Investments Co.
Liquid Assets Portfolio 3,057
-----
Total Short-Term Investments
(Cost $3,067) 3,067
-----
Total Investments 99.1%
(Cost $104,294) 125,237
-------
Other Assets, less Liabilities 0.9% 1,147
-----
NET ASSETS 100.0% $126,384
=======
<F87>Non-income producing
<F88>Unregistered security
See notes to the financial statements.
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market Value
of Shares (in thousands)
- --------- ------------
COMMON STOCKS 80.9%
AEROSPACE & AIRCRAFT 0.9%
43,000 Rockwell International Corporation 1,913
-----
BANKING 1.7%
120,800 Norwest Corporation 3,564
-----
BUSINESS SERVICES 3.6%
128,625 H & R Block, Inc. 5,306
51,200 Service Corporation International 2,054
-----
7,360
-----
CHEMICALS 5.7%
86,700 Avery Dennison Corporation 3,880
40,200 Ecolab, Inc. 1,166
44,600 Hercules, Inc. 2,381
110,200 Praxair, Inc. 2,975
33,300 Valspar Corporation 1,299
-----
11,701
------
COMMUNICATIONS & MEDIA 1.8%
95,600 Interpublic Group of Companies, Inc. 3,705
-----
CONSUMER PRODUCTS 3.3%
56,900 Duracell International, Inc. 2,980
156,000 Newell Company 3,764
-----
6,744
-----
CONTAINERS 0.9%
69,000 Bemis Company, Inc. 1,794
-----
COSMETICS & SOAP 1.4%
62,000 Gillette Company 2,999
-----
DISTRIBUTION 3.7%
85,425 Alco Standard Corporation 7,560
-----
DRUGS 8.4%
73,000 Allergan, Inc. 2,144
36,000 Johnson & Johnson 2,934
84,325 McKesson Corporation 4,026
98,200 Pfizer, Inc. 5,634
46,000 Schering-Plough 2,467
-----
17,205
------
ELECTRIC 2.0%
111,250 Nipsco Industries, Inc. $4,061
------
ELECTRICAL EQUIPMENT 4.9%
52,000 AMP, Inc. 2,041
86,700 Belden, Inc. 2,092
37,600 Emerson Electric Company 2,679
50,200 General Electric Company 3,175
-----
9,987
-----
ELECTRONICS 1.2%
38,750 Motorola, Inc. 2,543
-----
FINANCIAL SERVICES 3.0%
46,100 Federal National Mortgage Association 4,835
35,000 MBNA Corporation 1,290
-----
6,125
-----
FOOD, BEVERAGES & TOBACCO 3.1%
21,500 McCormick and Co. 532
83,800 Nabisco Holdings Corporation - Class A 2,252
66,325 PepsiCo, Inc. 3,499
-----
6,283
-----
INSURANCE 4.4%
43,700 MBIA, Inc. 3,042
55,700 MGIC Investment Corporation 3,168
211,600 Western National Corp. 2,910
-----
9,120
-----
NATURAL GAS 0.9%
55,000 Enron Corporation 1,891
-----
OFFICE EQUIPMENT 2.5%
95,000 Diebold, Inc. 5,035
-----
OIL - DOMESTIC 0.9%
56,600 Phillips Petroleum Company 1,825
-----
OIL - INTERNATIONAL 1.8%
37,325 Mobil Corporation 3,760
-----
PAPER & FOREST PRODUCTS 1.6%
11,850 Kimberly-Clark Corporation 861
44,950 Scott Paper Company 2,393
-----
3,254
-----
POLLUTION CONTROL 0.9%
65,900 Browning-Ferris Industries, Inc. 1,919
-----
PRINTING & PUBLISHING 2.7%
29,575 McGraw-Hill, Inc. 2,421
48,925 Tribune Company 3,088
-----
5,509
-----
PRODUCTION 4.2%
53,300 Dover Corporation 2,105
26,400 Harsco Corporation 1,393
85,000 Tyco International, Ltd. 5,164
-----
8,662
-----
RAILROADS 2.0%
107,000 Illinois Central Corporation - Class A 4,093
-----
REAL ESTATE 3.1%
70,525 Federal Realty Investment Trust 1,428
70,600 Post Properties, Inc. 2,118
166,416 Security Capital Industrial 2,725
-----
6,271
-----
RETAIL 5.7%
93,200 Albertson's, Inc. 3,099
30,900 Gap, Inc. 1,217
117,150 Hannaford Brothers Company 3,060
109,350 May Department Stores Company 4,292
-----
11,668
------
TELECOMMUNICATIONS 4.1%
27,350 AT & T Corporation 1,751
143,000 Frontier Corporation 3,861
65,700 GTE Corporation 2,710
-----
8,322
-----
TEXTILES & APPAREL 0.5%
46,700 Warnaco Group - Class A 1,086
-----
Total Common Stock
(Cost $129,746) 165,959
-------
PREFERRED STOCK 4.8%
BUSINESS SERVICES 1.8%
57,000 General Motors Corporation Series C 3,819
-----
FINANCIAL SERVICES 3.0%
77,300 American Express 4,242
35,300 Merrill Lynch & Co., Inc, 6.5% Strypes 1,902
-----
6,144
-----
Total Preferred Stock
(Cost $8,493) 9,963
-----
Principal
Amount
(in thousands)
- --------------
LONG-TERM INVESTMENTS 4.1%
CORPORATE CONVERTIBLE BONDS 4.1%
81 Browning-Ferris Industries, Inc.
(Aces) Subordinated Convertible
Debentures, 7.25%, 6/30/98 2,673
-----
2,175 Service Corporation International
Subordinated Convertible Debentures,
6.50%, 9/01/01 4,176
-----
800 Thermo Electron Corporation
Subordinated Convertible Debentures,
4.625%, 8/01/97 1,648
-----
Total Long-Term Investments
(Cost $6,662) 8,497
-----
Number
of Shares Market Value
(in thousands) (in thousands)
- -------------- ------------
SHORT-TERM INVESTMENTS 11.3%
INVESTMENT COMPANIES 7.9%
6,451 Financial Square Prime Obligation Fund 6,451
9,716 Short-Term Investments Co.
Liquid Assets Portfolio 9,716
-----
16,167
------
Principal
Amount
(in thousands)
- --------------
VARIABLE RATE DEMAND NOTES 3.4%
7,000 Warner-Lambert Co. 7,000
-----
Total Short-Term Investments
(Cost $23,167) 23,167
------
Total Investments 101.1%
(Cost $168,068) 207,586
-------
Liabilities, less Other
Assets (1.1)% (2,410)
-------
NET ASSETS 100.0% $205,176
========
See notes to the financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market Value
of Shares (in thousands)
--------- -------------
COMMON STOCKS 94.2%
AEROSPACE & AIRCRAFT 2.3%
10,100 Allied Signal, Inc. 429
12,000 Boeing Company 788
2,000 General Dynamics Corporation 111
6,934 Lockheed Martin Corporation 472
4,000 McDonnell Douglas Corporation 327
1,700 Northrop Grumman Corporation 97
9,000 Raytheon Company 393
7,600 Rockwell International Corporation 338
3,200 Textron, Inc. 220
4,200 United Technologies Corporation 373
-----
3,548
-----
AIR TRANSPORTATION 0.4%
2,600 AMR Corporation<F89> 172
1,800 Delta Air Lines, Inc. 118
1,800 Federal Express Corporation<F89> 148
5,600 Southwest Airlines Company 112
-----
550
-----
APPLIANCES 0.3%
1,500 Armstrong World Industries, Inc. 89
3,200 Black & Decker Corporation 108
4,000 Maytag Corporation 76
1,400 Snap-On Tools, Inc. 59
2,400 Whirlpool Corporation 127
-----
459
-----
AUTO & TRUCK 2.2%
12,875 Chrysler Corporation 665
3,700 Dana Corporation 95
2,800 Eaton Corporation 144
2,000 Echlin, Inc. 71
35,700 Ford Motor Company 1,026
25,900 General Motors Corporation 1,133
4,125 Genuine Parts Company 163
1,320 PACCAR, Inc. 55
2,200 TRW, Inc. 145
---
3,497
-----
BANKING 5.6%
13,687 Banc One Corporation 462
3,900 Bank of Boston Corporation 174
6,500 Bank of New York 273
13,112 BankAmerica Corporation 754
2,900 Bankers Trust New York Corporation 185
3,300 Barnett Banks, Inc. 182
4,000 Boatmen's Bancshares, Inc. 152
6,500 Chase Manhattan Corporation 371
8,382 Chemical Banking Corporation 477
13,700 Citicorp 889
4,800 CoreStates Financial Corporation 175
4,700 First Bank System, Inc. 234
3,100 First Chicago Corporation 210
2,800 First Fidelity Bancorporation 183
2,600 First Interstate Bancorp, Inc. 335
6,200 First Union Corporation 308
4,800 Fleet Financial Group, Inc. 186
4,800 Mellon Bank Corporation 241
6,600 J.P. Morgan & Company, Inc. 509
9,305 NationsBank Corporation 612
5,350 NBD Bancorp, Inc. 203
11,000 Norwest Corporation 324
7,900 PNC Bank Corporation 207
1,700 Republic New York Corporation 100
4,000 Shawmut National Corporation 136
3,800 Sun Trust Banks, Inc. 245
3,600 US Bancorp 107
5,700 Wachovia Corporation 252
1,700 Wells Fargo & Company 357
---
8,843
-----
BIO-TECHNOLOGY 0.3%
9,200 Amgen, Inc. <F89> 442
1,800 Millipore Corporation 64
---
506
---
BUILDING & HOUSING 0.5%
8,300 Corning, Inc. 217
3,200 Fluor Corporation 181
5,500 Masco Corporation 155
2,000 Owens-Corning Fiberglass Corporation<F89> 85
1,500 The Stanley Works 72
-----
710
-----
BUILDING MATERIALS 0.5%
16,400 Home Depot, Inc. 611
1,700 Johnson Controls, Inc. 99
-----
710
-----
BUSINESS MACHINES & SOFTWARE 3.1%
2,700 Amdahl Corporation<F89> 25
3,900 Apple Computer, Inc. 142
1,500 Ceridian Corporation<F89> 65
9,400 COMPAQ Computer Corporation<F89> 524
4,950 Digital Equipment Corporation<F89> 268
4,300 Honeywell, Inc. 181
19,900 International Business
Machines Corporation 1,935
14,550 Oracle Systems Corporation<F89> 635
5,400 Pitney-Bowes, Inc. 236
3,200 Sun Microsystems, Inc. <F89> 250
3,900 Tandem Computers, Inc. <F89> 44
5,000 Unisys Corporation<F89> 28
3,850 Xerox Corporation 500
---
4,833
-----
BUSINESS SERVICES 1.9%
1,600 Autodesk, Inc. 54
5,000 Automatic Data Processing, Inc. 358
3,600 H & R Block, Inc. 148
9,200 Cisco Systems, Inc. <F89> 713
8,250 Computer Associates International, Inc. 454
2,000 Computer Sciences Corporation<F89> 134
3,400 Deluxe Corporation 91
3,300 Dial Corporation 80
6,121 Dun & Bradstreet Corporation 366
4,100 First Data Corporation 271
3,600 Moore Corporation Limited 69
1,600 National Service Industries 48
3,800 Service Corporation International 152
-----
2,938
-----
CHEMICALS 2.9%
4,000 Air Products and Chemicals, Inc. 206
9,500 Dow Chemical Company 652
19,100 Dupont (E.I.) De Nemours & Company 1,191
2,200 Ecolab, Inc. 64
3,400 W.R. Grace & Company 190
2,500 Great Lakes Chemical Corporation 168
3,900 Hercules, Inc. 208
4,100 Monsanto Company 429
5,800 Morton International, Inc. 177
2,500 Nalco Chemical Company 75
7,300 PPG Industries, Inc. 310
4,900 Praxair, Inc. 132
2,300 Rohm & Haas Company 127
5,200 Rubbermaid, Inc. 136
3,300 Sherwin-Williams Company 124
2,000 Sigma-Aldrich Corporation 95
4,650 Union Carbide Corporation 176
3,000 The Williams Companies, Inc. 116
-----
4,576
-----
COMPUTERS 0.1%
5,700 Silicon Graphics, Inc. 190
CONGLOMERATE 0.4%
3,600 ITT Corporation 441
5,924 Tenneco, Inc. 260
-----
701
-----
CONSUMER DURABLES 0.6%
3,037 Eastman Chemical Company 181
11,550 Eastman Kodak Company 723
1,428 Polaroid Corporation 61
-----
965
-----
CONSUMER PRODUCTS 0.1%
6,100 Newell Company 147
-----
CONTAINERS 0.2%
1,200 Ball Corporation 33
2,100 Bemis Company, Inc. 55
3,200 Crown Cork & Seal Company, Inc.<F89> 112
3,242 Stone Container Corporation 53
-----
253
-----
COSMETICS & SOAP 2.2%
2,300 Avon Products, Inc. 164
1,700 Clorox Company 122
4,900 Colgate-Palmolive Company 339
15,144 Gillette Company 733
4,100 International Flavors & Fragrances, Inc. 198
23,900 Procter & Gamble Company 1,936
-----
3,492
-----
DISTRIBUTION 0.1%
1,679 Alco Standard Corporation 149
-----
DIVERSIFIED 0.5%
5,500 Unilever N.V. 720
-----
DRUGS 7.8%
27,700 Abbott Laboratories 1,101
2,800 Allergan, Inc. 82
2,700 Alza Corporation - Class A<F89> 59
10,500 American Home Products Corporation 931
1,700 Bard (C.R.), Inc. 48
9,600 Baxter International, Inc. 371
2,100 Becton, Dickinson & Company 136
17,660 Bristol-Meyers Squibb Company 1,347
22,500 Johnson & Johnson 1,834
10,100 Eli Lilly & Company 976
8,200 Medtronic, Inc. 474
42,700 Merck & Company, Inc. 2,455
21,600 Pfizer, Inc. 1,239
12,800 Schering-Plough 686
1,600 St. Jude Medical, Inc. <F89> 85
5,800 Tenet Healthcare Corporation 104
5,900 Upjohn Company 299
------
12,227
------
ELECTRIC 1.0%
5,432 CINergy Corporation 154
8,600 Consolidated Edison Company
Of New York, Inc. 261
7,300 Duke Power Company 327
4,500 General Public Utilities Corporation 141
9,800 PacifiCorp 185
8,400 Texas Utilities Company 309
3,500 Union Electric Company 137
-----
1,514
-----
ELECTRICAL EQUIPMENT 3.0%
7,500 AMP, Inc. 294
8,300 Emerson Electric Company 591
58,500 General Electric Company 3,700
1,700 Grainger (W.W.), Inc. 106
2,600 Scientific-Atlanta, Inc. 32
-----
4,723
-----
ELECTRONICS 4.1%
1,700 General Signal Corporation 54
1,400 Harris Corporation 81
17,800 Hewlett-Packard Company 1,649
28,200 Intel Corporation 1,970
6,200 Loral Corporation 184
20,500 Motorola, Inc. 1,345
4,200 National Semiconductor Corporation<F89> 102
8,500 Northern Telecom Ltd. 306
1,200 Perkin-Elmer Corporation 42
1,100 Tektronix, Inc. 65
1,900 Teledyne, Inc. 47
6,600 Texas Instruments, Inc. 450
650 Thomas & Betts Corporation 42
1,600 Western Atlas, Inc. <F89> 70
-----
6,407
-----
ENERGY 3.0%
6,500 American Electric Power Company 248
5,750 Baltimore Gas & Electric Company 154
5,700 Carolina Power & Light Company 187
6,300 Central & South West Corporation 169
4,125 Coastal Corporation 134
3,300 Consolidated Natural Gas Company 125
5,300 Detroit Edison Company 179
6,300 Dominion Resources, Inc. 250
7,700 Entergy Corporation 219
6,500 FPL Group, Inc. 272
4,300 Houston Industries, Inc. 199
4,100 Niagara Mohawk Power Corporation 44
1,400 NICOR, Inc. 38
2,300 Northern States Power Company 109
5,100 Ohio Edison Company 117
3,100 Pacific Enterprises, Inc. 77
14,400 Pacific Gas & Electric Company 423
4,608 Panhandle Eastern Corporation 116
7,800 Peco Energy Company 228
8,300 Public Service Enterprises Group, Inc. 244
16,300 SCEcorp 277
3,100 Sonat, Inc. 89
24,000 Southern Company 573
7,700 Unicom Corporation 252
-----
4,723
-----
ENERGY-RAW MATERIALS 0.4%
5,100 Baker Hughes, Inc. 100
6,100 Dresser Industries, Inc. 127
4,300 Halliburton Company 178
900 Louisiana Land & Exploration Company 32
2,300 McDermott International, Inc. 37
10,300 Occidental Petroleum Corporation 221
-----
695
-----
ENTERTAINMENT & LEISURE 1.5%
4,500 Brunswick Corporation 88
3,650 Hasbro, Inc. 111
900 King World Productions, Inc. <F89> 31
7,290 Mattel, Inc. 210
24,300 McDonald's Corporation 996
2,400 Premark International, Inc. 111
6,621 Price/Costco, Inc.<F89> 113
12,685 Viacom, Inc. - Class B 634
3,850 Wendy's International, Inc. 77
-----
2,371
-----
FINANCE 1.5%
17,100 American Express Company 695
1,600 Beneficial Corporation 78
5,100 Great Western Financial Corporation 115
3,700 H.F. Ahmanson & Company 92
3,200 Household International, Inc. 180
6,500 Merrill Lynch & Company, Inc. 361
5,100 National City Corporation<F89> 157
3,500 Salomon, Inc. 126
56 Transport Holdings, Inc. - Class A<F89> 2
11,339 The Travelers, Inc. 573
-----
2,379
-----
FINANCIAL SERVICES 1.1%
5,973 Dean Witter Discover and Company 297
9,500 Federal National Mortgage Association 996
4,800 MBNA Corporation 177
2,700 Morgan Stanley Group, Inc. 235
-----
1,705
-----
FOOD, BEVERAGES & TOBACCO 7.7%
6,400 American Brands, Inc. 274
20,711 Archer-Daniels-Midland Company 334
8,700 Campbell Soup Company 456
43,600 Coca-Cola Company 3,134
8,375 ConAgra, Inc. 323
5,000 CPC International, Inc. 332
5,900 Dardeen Restaurants, Inc. 67
5,100 General Mills, Inc. 293
8,600 Heinz (H.J.) Company 400
3,100 Hershey Foods Corporation 185
7,700 Kellogg Company 556
2,100 Loews Corporation 308
26,700 PepsiCo, Inc. 1,408
29,100 Philip Morris Companies, Inc. 2,459
2,900 Pioneer Hi-Bred International, Inc. 144
4,600 Quaker Oats Company 157
3,400 Ralston-Ralston Purina Group 202
16,900 Sara Lee Corporation 496
5,900 Sysco Corporation 179
6,600 UST, Inc. 198
3,800 Wrigley (Wm) Jr. Company 177
------
12,082
------
FOREST PRODUCTS 1.7%
1,500 Avery Dennison Corporation 67
1,400 Boise Cascade Corporation 51
3,500 Champion International Corporation 187
1,300 Federal Paperboard Company 55
3,400 Georgia-Pacific Corporation 280
8,600 International Paper Company 318
2,900 James River Corporation of Virginia 93
5,700 Kimberly-Clark Corporation 414
3,672 Louisiana Pacific Corporation 88
2,200 Mead Corporation 127
700 Potlatch Corporation 29
5,200 Scott Paper Company 277
1,550 Temple-Inland, Inc. 71
2,350 Union Camp Corporation 120
2,925 Westvaco Corporation 81
7,050 Weyerhaeuser Company 311
2,200 Willamette Industries 128
-----
2,697
-----
GOLD & PRECIOUS METALS 0.6%
12,600 Barrick Gold Corporation 291
3,500 Cyprus Amax Minerals Company 91
3,000 Echo Bay Mines, Ltd. 27
7,100 Freeport McMoRan Copper & Gold, Inc. 162
4,100 Homestake Mining Company 63
8,461 Placer Dome, Inc. 185
5,152 Santa Fe Pacific Gold Corporation 51
-----
870
---
HEALTH CARE SERVICES & SUPPLIES 1.1%
1,800 Bausch & Lomb, Inc. 62
2,700 Beverly Enterprises<F89> 32
15,252 Columbia/HCA Healthcare Corporation 749
2,200 Manor Care, Inc. 72
5,800 United Healthcare Corporation 308
4,600 Warner-Lambert Company 392
-----
1,615
-----
HOSPITAL SUPPLIES & SERVICES 0.2%
3,300 Biomet, Inc. <F89> 55
5,400 Boston Scientific Corporation<F89> 227
1,500 US Surgical Corporation 37
-----
319
-----
INSURANCE 3.4%
4,200 Aetna Life and Casualty Company 296
1,300 Alexander & Alexander Services, Inc. 29
15,773 Allstate Corporation 580
7,300 American General Corporation 240
16,355 American International Group, Inc. 1,380
3,100 Chubb Corporation 279
2,500 CIGNA Corporation 248
2,900 General Re Corporation 420
1,700 Jefferson-Pilot Corporation 112
8,202 KeyCorp 277
3,100 Lincoln National Corporation 138
2,600 Marsh & McLennan Companies, Inc. 213
3,200 Providian Corporation 126
2,200 SAFECO Corporation 141
2,900 St. Paul Companies, Inc. 147
2,450 Torchmark Corporation 102
2,200 Transamerica Corporation 149
2,600 UNUM Corporation 137
5,400 US Healthcare, Inc. 208
2,800 USF&G Corporation 47
-----
5,269
-----
LIQUOR 0.7%
8,800 Anheuser-Busch Companies, Inc. 581
2,500 Brown-Foreman Corporation - Class B 95
12,800 Seagram Company Ltd. 461
-----
1,137
-----
MACHINERY - AUTOMOTIVE 0.0%
1,500 Varity Corporation<F89> 54
-----
MACHINERY - INDUSTRIAL 0.0%
1,600 Harnischfeger Industries, Inc. 50
-----
MEDIA 1.9%
1,200 Andrew Corporation<F89> 51
5,500 Capital Cities/ABC, Inc. 652
2,375 CBS, Inc. 192
8,100 Comcast Corporation - Class A 145
3,700 Dow Jones & Company, Inc. 130
4,900 Gannett Company, Inc. 266
2,500 Harcourt General, Inc. 99
2,800 Interpublic Group Of Companies, Inc. 108
1,900 Knight-Ridder, Inc. 105
3,100 New York Times Company - Class A 86
23,100 Tele-Communications, Inc. - Class A<F89> 393
13,100 Time Warner, Inc. 478
3,623 Times Mirror Company - Class A 105
2,200 Tribune Company 139
-----
2,949
-----
METALS & MINERALS 0.3%
3,100 Bethlehem Steel Corporation<F89> 41
1,300 Inland Steel Industries, Inc. 30
3,000 Nucor Corporation 144
11,466 USX Corporation-Marathon Group, Inc. 204
2,293 USX Corporation-US Steel Group, Inc. 69
3,225 Worthington Industries, Inc. 54
-----
542
-----
MISCELLANEOUS 0.8%
5,400 Applied Materials, Inc. <F89> 271
2,900 Mallinckrodt Group, Inc. 101
14,700 Minnesota Mining & Manufacturing
Company 836
-----
1,208
-----
NATURAL GAS 0.2%
8,500 Enron Corporation 292
-----
NON-FERROUS METALS 0.8%
7,850 Alcan Aluminum Ltd. 248
6,400 Aluminum Company of America 326
1,200 ASARCO, Inc. 39
4,800 Englehard Corporation 119
3,600 Inco, Ltd. 124
2,721 Newmont Mining Corporation 103
2,700 Phelps Dodge Corporation 171
2,100 Reynolds Metals Company 106
-----
1,236
-----
OFFICE EQUIPMENT 0.1%
12,000 Novell, Inc. 198
-----
OIL - DOMESTIC 1.9%
3,000 Amerada Hess Corporation 135
17,200 Amoco Corporation 1,099
1,900 Ashland, Inc. 60
5,500 Atlantic Richfield Company 587
4,800 Burlington Resources, Inc. 173
1,800 Columbia Gas Systems, Inc. <F89> 69
1,600 Kerr-McGee Corporation 88
4,900 Oryx Energy Company<F89> 56
1,700 Pennzoil Company 64
8,800 Phillips Petroleum Company 284
3,800 Sun Company, Inc. 109
8,100 Unocal Corporation 213
-----
2,937
-----
OIL & GAS SERVICES 0.3%
8,700 Schlumberger, Ltd. 542
-----
OIL - INTERNATIONAL 5.5%
22,500 Chevron Corporation 1,052
42,700 Exxon Corporation 3,261
13,600 Mobil Corporation 1,370
18,600 Royal Dutch Petroleum Company 2,285
9,200 Texaco, Inc. 627
-----
8,595
-----
POLLUTION CONTROL 0.4%
7,100 Browning-Ferris Industries, Inc. 207
17,300 WMX Technologies, Inc. 487
-----
694
-----
PRINTING & PUBLISHING 0.2%
1,600 McGraw-Hill, Inc. 131
5,000 R.R. Donnelley & Sons Company 182
-----
313
-----
PRODUCTION 1.4%
1,200 Briggs & Stratton Corporation 48
6,800 Caterpillar, Inc. 382
1,400 Cincinnati Milacron, Inc. 36
4,200 Cooper Industries, Inc. 142
3,100 Deere & Company 277
4,400 Dover Corporation 174
1,400 FMC Corporation<F89> 100
1,600 Foster Wheeler Corporation 60
4,000 Illinois Tool Works, Inc. 233
3,800 Ingersoll-Rand Company 134
3,466 Pall Corporation 84
2,250 Parker-Hannifin Corporation 76
1,850 Raychem Corporation 86
1,300 Timken Company 52
2,500 Tyco International, Ltd. 152
13,100 Westinghouse Electric Corporation 185
-----
2,221
-----
RAILROADS 1.2%
5,281 Burlington Northern Santa Fe 443
2,600 Conrail, Inc. 179
3,560 CSX Corporation 298
4,500 Norfolk Southern Corporation 348
7,300 Union Pacific Corporation 477
3,500 Whitman Corporation 74
-----
1,819
-----
RETAIL 3.8%
8,600 Albertson's, Inc. 286
2,600 American Greetings Corporation 82
5,200 American Stores Company 155
3,300 Circuit City Stores, Inc. 110
2,500 Dayton Hudson Corporation 172
4,300 Dillard Department Stores,
Inc. - Class A 117
4,900 Gap, Inc. 193
2,500 Giant Food, Inc. 80
15,400 Kmart Corporation 125
3,800 Kroger Corporation<F89> 127
12,000 The Limited, Inc. 221
5,600 Lowe's Companies, Inc. 151
8,876 May Department Stores Company 348
900 Mercantile Stores Company, Inc. 40
2,800 Nordstrom, Inc. 104
8,300 J.C. Penney Company, Inc. 350
2,000 Pep Boys-Manny, Moe & Jack 44
3,100 Rite Aid Corporation 84
13,500 Sears Roebuck and Company 459
2,200 Supervalu, Inc. 68
2,600 Tandy Corporation 128
2,500 TJX Companies, Inc. 34
10,225 Toys "R" Us, Inc. <F89> 224
8,900 Walgreen Company 254
79,700 Wal-Mart Stores, Inc. 1,724
2,700 Winn-Dixie Stores, Inc. 176
4,400 Woolworth Corporation 64
-----
5,920
-----
SAVINGS & LOAN 0.3%
6,100 Federal Home Loan Mortgage Corporation 422
1,700 Golden West Financial Corporation 85
-----
507
-----
SEMICONDUCTORS 0.4%
3,900 Advanced Micro Devices, Inc. <F89> 93
7,100 Micron Technology Incorporated 501
-----
594
-----
SOFTWARE 1.3%
20,100 Microsoft Corporation<F89> 2,010
-----
TELECOMMUNICATIONS 8.6%
16,900 Airtouch Communications, Inc. 482
6,500 Alltell Corporation 199
19,200 Ameritech Corporation 1,037
54,656 AT & T Corporation 3,498
15,200 Bell Atlantic Corporation 967
17,000 BellSouth Corp 1,301
2,500 Cabletron Systems<F89> 197
4,400 DSC Communications Corporation<F89> 163
33,200 GTE Corporation 1,370
23,900 MCI Communications Corporation 596
14,500 NYNEX Corporation 682
14,500 Pacific Telesis Group 440
21,000 SBC Communications, Inc. 1,173
12,000 Sprint Corporation 462
2,800 Tellabs, Inc. <F89> 95
16,553 US West, Inc. 788
------
13,450
------
TEXTILES & APPAREL 0.5%
2,500 Fruit of the Loom, Inc. <F89> 43
3,600 Liz Claiborne, Inc. 102
3,600 Melville Corporation 115
5,400 Nike, Inc. - Class B 306
2,600 Reebok International Ltd. 88
2,000 Russell Corporation 49
2,077 VF Corporation 99
-----
802
-----
TIRE & RUBBER 0.2%
3,200 Cooper Tire & Rubber Company 74
800 Goodrich (B.F.) Company 53
5,262 Goodyear Tire & Rubber Company 200
-----
327
-----
TRANSPORTATION 0.0%
2,000 Pittson Company 55
-----
TRANSPORTATION EQUIPMENT 0.0%
1,700 Cummins Engine Company, Inc. 60
-----
TRAVEL & RECREATION 1.0%
5,850 CUC International, Inc. <F89> 203
3,650 Harrahs Entertainment, Inc. <F89> 90
1,600 Hilton Hotels Corporation 107
4,900 Marriott International, Inc. 181
18,100 Walt Disney Company 1,043
-----
1,624
-----
TRUCKING 0.1%
1,300 Roadway Services, Inc. 58
3,450 Ryder System, Inc. 83
-----
141
-----
Total Common Stock
(Cost $101,960) 147,660
-------
PREFERRED STOCKS 0.0%
19 Teledyne Inc. Preferred Ser E -
-----
Total Preferred Stock
(Cost $0) -
-----
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
SHORT-TERM INVESTMENTS 5.7%
U.S. TREASURIES 0.2%
330 U.S. Treasury Bill,
5.42%, 11/02/95 330
------
Total U.S. Treasuries
(Cost $330) 330
------
VARIABLE RATE DEMAND NOTES 5.5%
2,324 Eli Lilly Demand Note 2,324
4,174 Sara Lee Demand Note 4,174
2,058 Southwestern Bell Demand Note 2,058
-----
Total Variable Rate Demand Notes
(Cost $8,556) 8,556
-----
Total Short-Term Investments
(Cost $8,886) 8,886
-----
Total Investments 99.9%
(Cost $110,846) 156,546
-------
Other Assets, less Liabilities 0.1% 223
-----
TOTAL NET ASSETS 100.0% 156,769
=======
<F89>Non-income producing
See notes to the financial statements.
MIDCORE GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 98.3%
AUTO PARTS 2.0%
72,900 AutoZone, Inc.<F90> 1,804
37,000 Lear Seating Corporation<F90> 1,027
-----
2,831
-----
BIO-TECHNOLOGY 0.8%
33,700 Millipore Corporation 1,192
-----
BUILDING MATERIALS 0.5%
18,000 Home Depot, Inc. 670
-----
BUSINESS SERVICES 9.8%
46,900 Ceridian Corporation<F90> 2,040
58,500 H & R Block, Inc. 2,413
86,815 First Data Corporation 5,741
77,900 General Motors Corporation - Class E 3,671
8,000 Reynolds & Reynolds - Class A 285
------
14,150
------
CAPITAL GOODS - MANUFACTURING 3.8%
20,000 Dover Corporation 790
78,000 Tyco International, Ltd. 4,739
-----
5,529
-----
COMMUNICATIONS & MEDIA 5.4%
28,000 Infinity Broadcasting Corporation<F90> 910
70,800 Interpublic Group of Companies, Inc. 2,744
125,000 PanAmSat Corporation<F90> 1,891
41,600 Reuters Holdings, PLC ADR 2,309
-----
7,854
-----
COMPUTERS 1.7%
89,200 Sungard Data Systems, Inc. <F90> 2,453
-----
CONSUMER PRODUCTS 1.3%
75,000 Newell Company 1,809
-----
DISTRIBUTION 3.9%
64,200 Alco Standard Corporation 5,682
DRUGS 2.6%
95,200 Elan Corporation, PLC ADR<F90> 3,820
-----
ELECTRICAL EQUIPMENT 4.5%
66,000 AVX Corporation 2,054
20,000 Kemet Corporation<F90> 690
80,093 Molex, Inc. - Class A 2,463
3,000 SGS-Thomson Microelectronics<F90> 136
31,000 Vishay Intertechnology, Inc. <F90> 1,093
-----
6,436
-----
ENERGY - NATURAL GAS 1.1%
46,000 Enron Corporation 1,581
-----
ENTERTAINMENT & LEISURE 5.5%
122,200 GTECH Holdings Corporation<F90> 2,994
74,000 Mirage Resorts, Inc. <F90> 2,423
49,735 Viacom, Inc. - Class B<F90> 2,487
-----
7,904
-----
FINANCE COMPANIES 3.1%
97,200 First USA, Inc. 4,471
-----
FINANCIAL SERVICES 5.8%
33,000 Federal National Mortgage Association 3,461
134,900 MBNA Corporation 4,974
-----
8,435
-----
HEALTH CARE SERVICES & SUPPLIES 12.8%
115,464 Columbia/HCA Healthcare Corporation 5,672
118,400 Foundation Health Corporation<F90> 5,017
73,700 Health Care & Retirement
Corporation<F90> 2,165
77,500 Lincare Holdings, Inc. <F90> 1,928
47,000 United Healthcare Corporation 2,497
45,000 Vencor, Inc. <F90> 1,249
------
18,528
------
HOSPITAL SUPPLIES & SERVICES 0.5%
18,000 Boston Scientific Corporation<F90> 758
------
INSURANCE 5.8%
66,750 AFLAC, Inc. 2,720
48,800 MBIA, Inc. 3,398
39,000 MGIC Investment Corporation 2,218
-----
8,336
-----
LODGING 1.6%
25,000 La Quinta Inns, Inc. 644
78,000 Promus Hotel Corporation<F90> 1,716
-----
2,360
-----
MACHINERY - AUTOMOTIVE 1.7%
67,000 Varity Corporation<F90> 2,429
-----
MACHINERY - DIVERSIFIED 1.0%
32,400 York International Corporation 1,418
-----
MACHINERY - INDUSTRIAL 2.3%
71,400 Thermo Electron Corporation<F90> 3,284
-----
OFFICE PRODUCTS 1.3%
73,250 Staples, Inc. <F90> 1,950
-----
POLLUTION CONTROL 1.1%
55,000 Browning-Ferris Industries, Inc. 1,602
-----
RETAIL 3.2%
104,000 General Nutrition Companies, Inc. <F90> 2,587
30,000 Kohl's Corporation<F90> 1,361
25,425 Lowe's Companies, Inc. 686
-----
4,634
-----
SEMICONDUCTORS 1.1%
32,700 LSI Logic Corporation<F90> 1,541
-----
SOFTWARE 3.9%
49,000 Bay Networks<F90> 3,246
9,000 Microsoft Corporation<F90> 900
80,200 Platinum Technology<F90> 1,464
-----
5,610
-----
TEXTILES & APPAREL 1.8%
25,100 Cintas Corporation 1,054
28,000 Nike, Inc. - Class B 1,589
-----
2,643
-----
TRANSPORTATION - RAILROAD 0.5%
9,000 Burlington Northern Santa Fe Company 755
-----
TRAVEL & RECREATION 5.2%
151,400 Carnival Corporation - Class A 3,520
116,350 CUC International, Inc. <F90> 4,029
-----
7,549
-----
UTILITIES - TELEPHONE 2.7%
31,500 DSC Communications Corporation<F90> 1,165
29,200 Frontier Corporation 788
60,000 WorldCom, Inc. <F90> 1,958
-----
3,911
-----
Total Common Stock
(Cost $107,302) 142,125
-------
Number
of Shares
(in thousands)
-------------
SHORT-TERM INVESTMENTS 1.8%
INVESTMENT COMPANIES 1.8%
10 Financial Square Prime Obligation Fund 10
2,527 Short-Term Investments Co.
Liquid Assets Portfolio 2,527
-----
Total Short-Term Investments
(Cost $2,537) 2,537
-----
Total Investments 100.1%
(Cost $109,839) 144,662
-------
Liabilities, less Other
Assets (0.1)% (129)
-----
TOTAL NET ASSETS 100.0% 144,533
=======
<F90>Non-income producing
See notes to the financial statements.
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market Value
of Shares (in thousands)
--------- -------------
COMMON STOCKS 89.5%
AIR TRANSPORTATION 0.4%
72,750 Comair Holdings, Inc. 2,041
-----
AUTO PARTS 0.9%
64,800 APS Holding Corporation<F91> 1,328
42,800 Copart, Inc. <F91> 974
88,300 Lear Seating Corporation<F91> 2,450
-----
4,752
-----
BIO-TECHNOLOGY 0.4%
209,300 Perseptive Biosystems, Inc. <F91> 2,224
-----
BUSINESS MACHINES & SOFTWARE 0.7%
9,900 Madge Networks N. V. 415
62,600 Mylex Corporation<F91> 1,166
31,400 National Instruments Corporation<F91> 589
43,400 Network General Corporation<F91> 1,801
-----
3,971
-----
BUSINESS SERVICES 6.1%
30,450 FIserv, Inc. <F91> 784
124,100 Franklin Quest Company<F91> 2,963
85,200 Interim Services, Inc. <F91> 2,535
98,500 Keane, Inc. <F91> 2,659
403,500 Manpower, Inc. 10,945
180,800 Medaphis Corporation<F91> 5,740
117,600 Robert Half International, Inc. <F91> 4,292
81,000 U.S. Delivery Systems, Inc. <F91> 1,681
------
31,599
------
CHEMICALS 1.5%
283,500 Airgas, Inc. <F91> 7,548
-----
COMMUNICATIONS & MEDIA 0.4%
75,400 Cellstar Corporation<F91> 2,092
-----
COMPUTERS 0.6%
98,500 Danka Business Systems PLC ADR 3,300
-----
CONSUMER SERVICES 2.4%
316,100 Loewen Group, Inc. 12,659
------
CONTAINERS 0.8%
147,800 Sealed Air Corporation<F91> 3,898
-----
ELECTRICAL EQUIPMENT 0.9%
156,400 AVX Corporation 4,868
-----
ELECTRONICS 2.9%
218,200 Arrow Electronics, Inc. <F91> 11,074
21,100 Checkpoint Systems, Inc. <F91> 609
94,200 Digi International, Inc. <F91> 2,520
13,600 Progress Software Corporation<F91> 891
-----
15,094
------
ENERGY - OIL & GAS 0.8%
182,300 NGC Corporation 1,641
48,400 Tejas Gas Corporation<F91> 2,269
-----
3,910
-----
ENTERTAINMENT & LEISURE 3.1%
174,700 Hollywood Entertainment Corporation 4,673
260,900 Mirage Resorts, Inc. <F91> 8,544
5,000 Movie Gallery, Inc. <F91> 193
72,950 Regal Cinemas, Inc. <F91> 2,863
-----
16,273
------
FINANCIAL SERVICES 4.8%
29,700 Advanta Corporation - Class B 1,062
96,700 AMBAC, Inc. 4,073
39,600 Green Tree Financial Corporation 1,054
72,900 National Data Corporation 1,932
174,636 Quick And Reilly Group, Inc. 4,148
555,100 The Charles Schwab Corporation 12,698
------
24,967
------
HEALTH CARE SERVICES & SUPPLIES 21.5%
105,700 American Medical Response, Inc. <F91> 3,052
482,300 Biomet, Inc. <F91> 8,018
173,556 Cardinal Health, Inc. 8,916
52,300 Cordis Corporation<F91> 5,779
546,975 Health Management Associates,
Inc. - Class A 11,760
238,000 Healthsource, Inc. <F91> 12,614
136,200 Medisense, Inc. <F91> 2,911
100,100 Medpartners, Inc. <F91> 2,803
108,800 Multicare Companies, Inc. <F91> 2,040
188,500 Oxford Health Plans<F91> 14,750
167,600 Pacificare Health Systems, Inc. <F91> 12,193
216,500 Quorum Health Group, Inc. <F91> 4,641
108,700 Renal Treatment Centers<F91> 3,913
343,300 Surgical Care Affiliates 10,170
321,500 Vencor, Inc. <F91> 8,922
-----
112,482
-------
HOSPITAL SUPPLIES & SERVICES 0.9%
20,400 Idexx Laboratories, Inc. 831
109,800 Omnicare, Inc. 3,980
-----
4,811
-----
HOUSING 3.6%
432,115 Clayton Homes, Inc. 11,343
88,700 Oakwood Homes Corp. 3,326
126,875 Southern Energy Homes, Inc. <F91> 1,871
125,300 Toll Brothers, Inc. <F91> 2,240
-----
18,780
------
INSURANCE 5.8%
122,800 Equitable Iowa Companies 4,298
170,900 Arthur J. Gallagher & Company 6,046
157,700 MGIC Investment Corporation 8,969
289,300 Protective Life Corporation 8,245
68,000 Vesta Insurance Group, Inc. 2,745
-----
30,303
------
LIQUOR 0.3%
27,500 Canandaigua Wine Company, Inc. <F91> 1,320
-----
MACHINERY - AUTOMOTIVE 1.3%
190,900 Varity Corporation<F91> 6,920
-----
MACHINERY - INDUSTRIAL 0.8%
198,500 TriMas Corporation 4,119
-----
OFFICE PRODUCTS 1.7%
126,375 Office Depot, Inc. <F91> 3,617
44,800 Officemax, Inc. <F91> 1,109
98,500 Viking Office Products, Inc. <F91> 4,383
-----
9,109
-----
PRINTING & PUBLISHING 0.5%
61,200 Banta Corporation 2,647
-----
RESTAURANTS 3.2%
158,450 Apple South, Inc. 3,248
31,200 DF & R Restaurants, Inc. <F91> 952
100,000 IHOP Corporation<F91> 2,150
37,700 Landrys Seafood
Restaurants Incorporated 509
107,400 Lone Star Steakhouse & Saloon<F91> 4,148
178,900 Outback Steakhouse, Inc. <F91> 5,613
-----
16,620
------
RETAIL 8.5%
13,800 CompUSA, Inc. <F91> 528
388,000 Consolidated Stores Corporation<F91> 8,972
159,000 Dept 56, Inc. <F91> 7,215
53,600 Discount Auto Parts, Inc. <F91> 1,434
431,157 Dollar General Corporation 10,563
200,600 Kohl's Corporation<F91> 9,102
54,700 Micro Warehouse, Inc. <F91> 2,434
214,000 Musicland Stores Corporation<F91> 1,391
146,400 Sports and Recreation, Inc. <F91> 1,080
107,800 Trend Lines, Inc. - Class A<F91> 1,415
-----
44,134
------
SEMICONDUCTORS 3.5%
131,700 Atmel Corporation 4,116
24,700 Burr-Brown Corporation 803
158,100 Dallas Semiconductor Corporation 3,360
65,400 Integrated Circuit Systems<F91> 887
22,600 Lattice Semiconductor Corporation<F91> 887
28,900 Linear Technology Corporation 1,264
37,600 Maxim Integrated Products<F91> 2,811
39,525 Microchip Technology, Inc. <F91> 1,569
14,500 SDL, Inc. <F91> 370
56,700 S3 Incorporated<F91> 971
39,500 Triquint Semiconductor, Inc. <F91> 899
11,100 VLSI Technology<F91> 261
---
18,198
------
SOFTWARE 1.7%
179,600 Compuware Corporation<F91> 4,086
32,000 McAfee Associates, Inc. <F91> 1,864
30,100 Parametric Technology Company<F91> 2,017
26,400 Softkey International, Inc. <F91> 832
-----
8,799
-----
TELECOMMUNICATIONS 3.5%
225,200 Aspect Telecommunications Corporation 7,741
224,100 Boston Technology, Inc. <F91> 3,081
99,100 Cidco, Inc. <F91> 2,936
43,900 Comverse Technology<F91> 999
71,900 Pairgain Technologies<F91> 3,074
4,700 U.S. Robotics Corporation<F91> 435
-----
18,266
------
TEXTILES & APPAREL 2.7%
98,300 Gymboree Corporation<F91> 2,224
227,400 Jones Apparel Group, Inc. <F91> 7,788
72,200 The Men's Wearhouse, Inc. <F91> 2,816
36,300 Oakley Incorporated<F91> 1,252
-----
14,080
------
TRANSPORTATION 1.3%
144,300 Arnold Industries, Inc. 2,345
81,228 Fritz Companies, Inc. 2,843
59,250 Heartland Express, Inc. <F91> 1,607
8,700 TNT Freightways Corporation 157
-----
6,952
-----
TRANSPORTATION EQUIPMENT 0.3%
53,150 Wabash National Corporation 1,349
-----
UTILITIES - TELEPHONE 1.7%
306,800 Century Telephone Enterprises 8,897
-----
Total Common Stock
(Cost $349,710) 466,982
-------
SHORT-TERM INVESTMENTS 8.4%
INVESTMENT COMPANIES 6.5%
9,878 Financial Square Prime Obligation Fund 9,878
23,835 Short-Term Investments Co.
Liquid Assets Portfolio 23,835
------
33,713
------
Principal
Amount
(in thousands)
- --------------
COMMERCIAL PAPER 1.9%
$10,000 ITT Hartford Group
5.78%, 11/17/95 9,974
-----
Total Short-Term Investments
(Cost $43,687) 43,687
------
Total Investments 97.9%
(Cost $393,397) 510,669
-------
Other Assets, less Liabilities 2.1% 10,828
------
TOTAL NET ASSETS 100.0% 521,497
=======
<F91>Non-income producing
See notes to the financial statements.
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market
of Shares Industry Value
- --------- -------- ------
COMMON AND PREFERRED STOCKS 96.7%
AUSTRALIA 2.6%
1,400 Aberfoyle Non-ferrous Metals 2,929
9,400 Amcor Limited Forest Products 70,361
4,323 Ampolex Ltd. Gas Exploration 8,550
4,200 Ashton Mining Ltd. Non-ferrous Metals 5,271
11,744 Australian National Industries Conglomerates 9,202
16,900 Boral Limited Construction Materials 40,367
3,300 Brambles Inds Ltd. Business Services 35,043
7,694 Burns Philp & Co. Retail Trade 17,207
2,700 Caltex Australia Petroleum Services 8,708
7,499 Coca-Cola Amatil Limited Food & Beverage 57,957
17,592 Coles Myer Limited Retail Trade 60,621
14,604 CSR Limited Conglomerates 46,547
4,228 Email Limited Household Appliances 10,613
4,654 FAI Insurances Insurance 2,089
50,000 Fosters Brewing Group Limited Food & Beverage 47,543
9,658 General Prop Trust Units Real Estate 16,604
14,200 Gold Mines Of Kalg Gold 11,342
433 Goldfields Limited<F92> Gold 1,070
17,810 Goodman Fielder Ltd. Food & Beverage 17,883
5,738 Hardie (James) Inds Construction Materials 9,384
4,500 ICI Australia Chemical 30,808
3,437 Lend Lease Corporation Limited Real Estate 47,740
23,722 MIM Holdings Limited Non-ferrous Metals 31,940
3,400 Newcrest Mining<F92> Gold 13,966
10,252 North Ltd. Non-ferrous Metals 28,855
2,125 OPSM Protector Ltd. Drugs & Healthcare 3,233
16,191 Pacific Dunlop Ltd. Conglomerates 39,166
13,600 Pioneer International Ltd. Construction Materials 33,312
9,664 QCT Resources Miscellaneous 12,497
3,029 Renison Goldfields
Consolidated Ltd. Gold 12,719
1,800 Rothmans Holdings Tobacco 6,709
7,990 Santos Ltd. Petroleum Services 21,577
6,323 Schroders Property Fund Mutual Fund 10,307
2,585 Smith (Howard) Conglomerates 11,405
8,463 Southcorp Holdings Ltd. Food & Beverage 18,219
4,786 Stockland Trust Group Real Estate 11,177
8,600 TNT<F92> Transportation 12,103
4,100 Tubemakers of Australia Industrial Machinery 9,980
14,680 Westfield Trust Real Estate 26,242
610 Westfield Trust New Units Real Estate 1,090
-----
862,336
-------
AUSTRIA 1.3%
100 Austrian Airlines<F92> Air Travel 16,397
300 BBAG Oesterr Brau Beverage & Tobacco 15,408
1,020 Creditanstalt Bank Bank 53,521
560 Creditanstalt Bank Preferred Bank 27,915
300 EA-Generali AG Insurance 82,037
100 Lenzing AG Chemicals 8,416
1,100 Oester Elektrizita Electric Utilities 67,153
957 OMV AG<F92> Miscellaneous 82,565
400 Veitsch-Radex AG<F92> Non-ferrous Metals 8,960
300 Wienerberger Baust Construction Materials 60,241
300 Z Laenderbank Bank
Austria AG Preferred Bank 13,925
------
436,538
-------
BELGIUM 1.7%
30 Bekaert SA Industrial Machinery 22,001
50 CBR Cimenteries Construction Materials 20,362
710 Delhaize Le Lion Retail Trade 27,443
150 Electrabel Electronics 34,011
490 Fortis AG Insurance 52,515
215 Generale De Banque Banks 69,451
5 Generale De Banque VVPR Banks 1,615
375 Gevaert Chemicals 21,872
102 Glaverbel Groupe Containers & Glass 11,564
2 Glaverbel Groupe VVPR Containers & Glass -
320 GPE Bruxelles LAM Conglomerates 41,966
180 Kredietbank Banks 45,099
25 Kredietbank VVPR Banks 6,341
205 Royale Belge Insurance 37,001
25 Royale Belge BBPR Insurance 4,555
125 Solvay Chemicals 63,199
175 Tractebelinv Intl Conglomerates 64,019
25 Tractebelinv Intl VVPR Conglomerates 9,145
350 Union Miniere<F92> Non-ferrous Metals 22,769
------
554,928
-------
DENMARK 1.2%
400 Carlsberg A Food & Beverage 20,708
325 Carlsberg B Food & Beverage 16,825
2 D/S 1912 B Conglomerates 39,148
2 D/S Svendborg B Conglomerates 56,160
625 Danisco Food & Beverage 28,469
90 Danske Luftfartsel DDL<F92> Air Travel 7,491
595 Den Danske Bank Banks 39,402
105 FLS Industries B Industrial Machinery 9,642
65 GN Store Nord Telecommunications 4,816
335 ISS International Service
System Series B Conglomerates 6,864
135 Korn-Og Foderstof Food & Beverage 6,174
30 Lauritzen (J) Holding B<F92> Conglomerates 4,939
85 NKT Holding Electrical Equipment 4,774
425 Novo Nordisk As B Drugs & Healthcare 54,034
240 OK Ostasiatiske Kompagni<F92> Conglomerates 6,190
115 Radio Meter As B Drugs & Healthcare 7,026
65 Sophus Berendsen A Conglomerates 7,075
200 Sophus Berendsen B Conglomerates 21,915
70 Superfos A/S Chemicals 6,210
600 Unidanmark A Banks 27,550
------
375,412
-------
FINLAND 0.8%
400 Amer Group Conglomerate 6,329
300 Cultor Oy Series 1 Household Products 12,291
300 Instrumentarium Series A Drugs & Healthcare 7,417
7,860 Kansallis-Yhtymai<F92> Banks 6,292
1,500 Kesko Retail 18,789
100 Kone Corp B Industrial Machinery 9,112
1,400 Kymmene Corp. Forest Products 38,238
200 Metra AB A Conglomerates 8,759
200 Metra AB B Conglomerates 8,665
2,100 Outokumpu Oy A Non-ferrous Metals 33,376
400 Pohjola A Insurance 5,698
300 Pohjola B Insurance 4,379
2,600 Repola Forest Products 50,321
300 Sampo (Vakuutusosak) A Insurance 16,600
100 Stockmann AB (OY) Retail 5,886
9,500 Unitas Series A<F92> Banks 23,039
------
255,191
-------
FRANCE 10.5%
935 Accor Leisure 111,025
900 Bic Toys, Amusements &
Sporting Goods 85,348
50 Bongrain SA Food & Beverage 26,436
774 Bouygues Home Builders 82,258
650 Canal Plus Broadcasting 112,254
2,750 Carnaudmetalbox Containers & Glass 115,218
2,036 Casino Guich Perr Leisure 58,256
568 Casino Guich Perr Preferred Leisure 11,667
275 Chargeurs Conglomerates 56,541
100 Cie Gen Geophysique<F92> Petroleum Services 3,577
350 Club Mediterranee<F92> Leisure 27,433
908 Compagnie Bancaire Financial Services 94,087
160 Comptoirs Modernes Retail 51,340
315 CPR Cie Par Reesco Investment Companies 24,206
1,251 Credit Foncier de France<F92> Banks 23,139
426 Credit National Banks 26,032
200 Dollfus-Mieg DMC Apparel & Textiles 8,539
450 Docks de France Retail 68,426
340 Ecco Ste Business Services 52,672
850 Eridania Beghin-Say Household Products 142,799
300 Essilor International Drugs & Healthcare 55,489
125 Eurafrance Financial Services 41,770
57 Europe 1 Registered Broadcasting 11,824
400 Finextel Financial Services 5,085
302 GTM Entrepose Home Builders 19,566
1,673 Havas Business Services 115,912
504 Imetal Non-ferrous Metals 59,332
2,850 Lagardere Groupe Publishing 53,180
920 Legrand Electical Equipment 153,807
3,600 Michelin (CGDE) Class B Tires & Rubber 145,313
966 Moulinex<F92> Household Products 19,239
500 Nord-Est Steel 11,292
1,885 Pernod-Ricard Food & Beverage 114,535
730 Pinault-Printemps-Redoute Retail 158,147
600 Promodes Retail 146,048
100 Sagem Electronics 55,591
250 Saint Louis Food & Beverage 71,839
50 Salomon SA Toys, Amusements &
Sporting Goods 28,838
3,413 Sanofi Drugs & Healthcare 217,563
4,250 Schneider SA (Ex Spep) Industrial Machinery 163,819
600 Sefimeg Real Estate 39,731
1,700 Seita Beverages & Tobacco 59,065
574 Simco Real Estate 46,157
10 Skis Rossignol Toys, Amusements &
Sporting Goods 2,665
216 Sodexho Leisure 55,932
50 Sommer Allibert Construction Materials 13,213
420 Sovac Financial Services 52,190
3,862 Thomson - CSF<F92> Aerospace 80,430
300 Unibail SA Financial Services 27,622
256 Union Immobiliere France Real Estate 21,441
8,050 Usinor Sacilor<F92> Steel 120,103
2,150 Valeo Industrial Machinery 97,066
---------
3,445,057
---------
GERMANY 15.5%
3,000 Agiv AG Construction & Mining 63,055
50 Amb Aach & Mun Bet Insurance 31,953
300 Amb Aach & Mun Bet Registered Insurance 201,307
300 Asko Deut Kaufhaus Retail Trade 155,720
300 Beiersdorf AG Series ABC Drugs & Healthcare 201,307
250 Bilfinger & Berger Home Builders 91,955
321 Brau Und Brunnen Food & Beverage 54,476
950 Bremer Vulkan Verbund<F92> Industrial Machinery 29,546
210 CKAG Colonia Konzern AG Insurance 164,028
50 CKAG Colonia Konzern
AG Non-Voting Preferred Insurance 29,042
6,550 Continental AG Industrial Machinery 92,555
650 Degussa AG Chemicals 209,082
100 DLW AG Construction Materials 18,817
2,200 Douglas Holding AG Retail Trade 80,452
102 Dyckerhoff AG Construction Materials 44,905
102 Dyckerhoff AG Non-Voting
Preferred Construction Materials 24,915
200 Fag Kugelfischer<F92> Industrial Machinery 26,912
330 Heidelberg Zement Construction Materials 206,206
150 Herlitz AG Business Services 27,693
100 Herlitz AG Non-Voting
Preferred Business Services 17,574
541 Hochtief AG Construction Materials 210,131
62 Holsten Brauerei AG Food & Beverage 13,648
150 Iwka AG Industrial Machinery 27,746
650 Karstadt AG Retail Trade 283,391
550 Kaufhof Holding AG Retail Trade 188,241
150 Kaufhof Holding AG Non-Voting
Preferred Retail Trade 40,048
4,200 Klockner Humboldt-Deutz<F92> Industrial Machinery 27,795
630 Linde AG Industrial Machinery 386,956
150 Linotype-Hell AG<F92> Computers & Business Equipment 18,959
2,637 Lufthansa AG<F92> Air Travel 366,630
150 Lufthansa AG Non-Voting
Preferred<F92> Air Travel 19,172
800 Man AG Industrial Machinery 231,769
300 Man AG Non-Voting Preferred Industrial Machinery 68,061
50 Munchener Ruck Nam Insurance 88,404
1,150 Preussag AG Conglomerates 326,635
500 PWA Papierwerke Waldhof<F92> Forest Products 79,884
100 Rheinmetall Berlin Aerospace 14,343
1,450 RWE AG Non-Voting Preferred Electic Utilities 410,814
150 Salamander AG Apparel & Textiles 26,628
5,100 Schering AG Drugs & Healthcare 355,620
150 Strabag AG Home Builders 25,030
500 Volkswagen AG Non-Voting
Preferred Automobiles 113,967
---------
5,095,372
---------
GREAT BRITAIN 7.9%
2,500 Amec Home Builders 2,268
3,500 Anglian Water Business Services 31,063
3,700 Argos Retail 29,831
334 Argyll Group Retail 1,694
10,200 Arjo Wiggins Appleton Forest Products 37,659
5,600 Associated British Foods Food & Beverage 62,158
2,200 Barratt Developments Home Builders 6,734
4,900 BBA Group<F92> Industrial Machinery 20,797
11,400 BET Conglomerates 22,663
4,419 BICC Electrical Equipment 18,372
9,100 Blue Circle Industries Construction Materials 41,781
2,343 Bowthorpe Electronics 15,878
6,000 BPB Industries Construction Materials 26,365
5,300 British Aerospace Aerospace 59,288
4,600 British Land Co. Real Estate 26,346
25,100 British Steel Steel 64,651
2,500 Burmah Castrol PLC Petroleum Services 38,853
2,100 Calor Group Gas & Pipeline Utilities 8,499
7,400 Caradon PLC Containers & Glass 23,118
2,900 Carlton Communications Broadcasting 44,086
3,400 Chubb Security Business Services 17,837
8,709 Coats Viyella Apparel & Textiles 25,695
800 Cobham PLC Aerospace 4,986
340 Costain Group<F92> Home Builders 392
5,000 Courtaulds PLC Chemicals 30,530
1,200 Courtaulds Textile Apparel & Textiles 7,772
2,430 Dawson International Apparel & Textiles 4,562
2,739 De La Rue Business Services 38,959
1,800 Delta Electrical Equipment 11,956
2,336 East Midlands Electricity Electric Utilities 32,010
3,000 Eastern Group Electric Utilities 46,056
5,070 Electrocomponents Electronics 25,918
3,812 English China Clays Mining 20,540
6,840 FKI Electrical Equipment 17,537
11,700 Forte Leisure 46,519
5,600 General Accident Insurance 57,122
4,300 GKN Industrial Machinery 54,751
3,900 Great Portland Estates Real Estate 9,968
10,831 Guardian Royal Exchange Insurance 39,134
3,568 Hammerson PLC Real Estate 18,380
8,815 Harrison & Crosfield Miscellaneous 20,167
2,800 Hepworth Construction Materials 12,745
4,300 IMI Non-ferrous Metals 22,321
2,700 Johnson Matthey Conglomerates 25,816
14,497 Ladbroke Group Hotels & Restaurants 37,969
1,133 Laing (John) Home Builders 3,986
1,700 Laird Group Industrial Machinery 11,171
12,000 Lasmo Gas Exploration 29,157
6,084 Legal & General GR Insurance 65,611
1,400 Lex Service Business Services 7,289
2,500 London Electricity Electric Utilities 35,579
9,600 Lonrho Conglomerates 23,705
9,906 Lucas Industries Industrial Machinery 29,931
1,400 Manweb Electric Utilities 22,199
3,733 Marley Home Builders 6,332
5,100 MEPC Real Estate 30,256
2,212 Mercury Asset Management Gp Financial Services 32,231
1,534 Meyer International Forest Products 8,471
4,700 Next Retail 30,589
5,063 North West Water Group Business Services 47,491
1,257 North West Water Group
(Registered) Business Services 3,570
1,238 Northern Electric Electric Utilities 17,336
1,400 Northern Electric Preferred Electric Utilities 2,181
1,900 Ocean Group Trucking & Freight Forwarding 11,032
500 Oxford Instruments Electronics 3,353
9,900 Pilkington Containers & Glass 29,522
1,600 Provident Financial Financial Services 19,413
3,400 Racal Electronics Electonics 13,545
6,468 Redland Construction Materials 35,565
6,200 Rexam Construction Materials 39,618
3,100 RMC Group Construction Materials 49,977
18,032 Rolls Royce Automobiles 43,814
8,100 Royal Insurance Holdings Insurance 49,906
7,700 Rugby Group Construction Materials 12,999
2,400 Schroders Financial Services 50,969
7,600 Scottish & Newcastle Food & Beverage 70,328
18,800 Sears PLC Retail 30,107
6,400 Sedgwick Group Insurance 10,704
3,000 Seeboard Electric Utilities 24,542
4,700 Slough Estates Real Estate 14,535
3,700 Smiths Industries Industrial Machinery 33,859
3,400 Southern Electric Electric Utilities 51,097
2,060 Southern Water Electric Utilities 22,118
3,300 St. James' Place Capital Financial Services 6,092
6,235 T & N Industrial Machinery 14,117
11,043 Tarmac Construction Materials 14,984
4,951 Tate & Lyle Food & Beverage 35,074
4,700 Taylor Woodrow Home Builders 7,898
5,000 Thames Water Business Services 41,535
5,832 TI Group Conglomerates 39,889
13,000 Trafalgar House Conglomerates 4,666
1,800 Transport Development Railroads & Equipment 5,495
2,900 Unigate Food & Beverage 19,172
6,600 United Biscuits Food & Beverage 28,481
4,000 Vickers Industrial Machinery 15,841
1,516 Welsh Water Business Services 17,999
1,530 Welsh Water Preferred Business Services 2,505
7,200 Williams Holdings Construction Materials 35,614
5,100 Willis Corroon Group Insurance 10,139
2,300 Wilson (Connoly) Holdings Home Builders 5,171
4,400 Wimpey (George) Home Builders 7,081
6,900 Wolseley Construction Materials 42,676
---------
2,590,263
---------
HONG KONG 1.0%
10,000 Applied International Holdings Electonics 931
8,200 Bank Of East Asia Banks 28,900
27,000 Cathay Pacific Airways Air Travel 39,810
16,000 Chinese Estates Real Estate 11,692
6,000 Dickson Concepts International Retail 4,346
6,000 Giordano International Retail 4,966
13,000 Hang Lung Development Co. Real Estate 21,606
1,600 Hongkong Aircraft Haeco Aerospace 4,118
23,200 Hongkong & China Gas Electric Utilities 37,657
9,500 Hongkong & Shangai Hotel Conglomerates 11,918
41,000 Hopewell Holdings Real Estate 25,851
9,000 Hysan Development Real Estate 22,931
3,500 Johnson Electric Holdings Electrical Equipment 7,311
4,000 Kumagai Gumi (HK) Home Builders 3,026
2,000 Lai Sun Garment International Apparel & Textiles 2,108
5,000 Miramar Hotel & Invest. Hotels & Restaurants 10,573
12,000 Oriental Press Group Publishing 4,928
6,000 Peregrine Investments<F92> Real Estate 7,644
26,000 Regal Hotels International Hotels & Restaurants 4,876
14,000 Shangri-La Asia Leisure 15,482
14,000 Shun Tak Holdings Aerospace 11,045
9,000 Stelux Holdings International Conglomerates 2,328
14,000 South China Morning Post Broadcasting 8,148
5,300 Tai Cheung Holdings Real Estate 4,456
4,000 Television Broadcasts Broadcasting 16,038
1,460 Wing Lung Bank Banks 8,082
2,500 Winsor Industrial Corp. Apparel & Textiles 2,247
-------
323,018
-------
IRELAND 0.4%
6,200 Allied Irish Banks Banks 31,296
3,300 CRH Construction Materials 21,783
2,600 Fyffes Food & Beverage 4,322
805 Greencore Group Food & Beverage 6,447
1,100 Independent News PLC Newspapers 6,585
2,900 Irish Life Insurance 10,674
1,500 Kerry Group A Food & Beverage 11,649
9,840 Smurfit (Jefferson) Paper 26,108
6,700 Waterford Wedgewood Toys, Amusements &
Sporting Goods 6,070
1,645 Woodchester Investments Financial Services 4,471
129,405
ITALY 7.7%
7,000 Arn Mondadori Edit Broadcasting, Advertising &
Publishing 51,814
83,500 Banca Commerciale Italiana Banks 162,637
17,500 Banca Naz Agricolt<F92> Banks 12,844
10,000 Banca Naz Agricolt Priv<F92> Banks 3,852
8,000 Banca Naz Agricolt,
Non-Convertible
Preferred<F92> Banks 2,961
1,500 Banca Naz Agricoltura<F92> Agricultural Machinery 555
11,000 Banca Popolare Milano<F92> Banks 44,851
24,000 Banco Ambros Veneto<F92> Banks 62,478
11,000 Banco Ambros Veneto,
Non-Convertible Preferred Banks 13,490
9,000 Benetton Group Apparel & Textiles 93,125
6,600 Cartiere Burgo Forest Products 37,530
15,500 Cementir Construction Materials 12,902
118,000 Credito Italiano Ord Banks 134,051
2,000 Danieli Industrial Machinery 10,902
2,000 Danieli, Non-Convertible
Preferred Industrial Machinery 5,520
34,000 Edison Ord Electric Utilities 136,499
17,500 Fidis Conglomerates 31,835
32,000 IMI Istituto Mobiliare Banks 174,839
29,000 Impregilo Ord<F92> Home Builders 25,195
39,000 Ist Bc S.Paolo (To) Banks 215,287
8,200 Italcementi Construction Materials 50,667
4,000 Italcementi, Non-Convertible
Preferred Construction Materials 11,643
35,000 Italgas Gas & Pipeline Utilities 93,090
3,000 La Previdente Insurance 20,644
21,000 Magneti Marelli Industrial Machinery 40,178
3,000 Marzotto & Figli Apparel & Textiles 19,101
25,000 Mediobanca Banks 167,017
282,000 Montedison<F92> Conglomerates 194,233
36,000 Montedison, Non-Convertible
Preferred<F92> Conglomerates 21,115
63,000 Olivetti<F92> Computers & Business Equipment 47,028
4,500 Olivetti, Non-Convertible
Preferred<F92> Computers & Business Equipment 2,484
1,000 Olivetti, Priv<F92> Computers & Business Equipment 1,004
58,000 Parmalat Finanziaria Food & Beverage 45,843
75,000 Pirelli Spa Industrial Machinery 96,917
4,000 Pirelli Spa, Non-Convertible
Preferred Industrial Machinery 4,065
14,220 Ras Insurance 142,722
5,780 Ras, Non-Convertible Preferred Insurance 31,889
8,000 Rinascente Retail 47,423
2,000 Rinascente, Non-Convertible
Preferred Retail 5,608
2,000 Rinascente, Priv Retail 5,332
3,000 Sai, Non-Convertible Preferred Insurance 12,703
6,000 Sai Ord Insurance 61,048
20,000 Saipem Petroleum 44,161
4,333 Sasib Industrial Machinery 19,190
3,000 Sasib, Non-Convertible
Preferred Industrial Machinery 7,433
11,000 Sirti Home Builders 67,001
34,000 SNIA BPD<F92> Conglomerates 33,208
2,000 SNIA BPD, Non-Convertible
Preferred Conglomerates 1,204
---------
2,527,118
---------
JAPAN 34.0%
9,000 77th Bank Banks 83,623
2,000 Advantest Corp. Electronics 113,453
2,000 Aida Engineering Industrial Machinery 14,045
4,000 Alps Electric Co. <F92> Electronics 41,078
7,000 Amada Co. Industrial Machinery 69,832
2,000 Amano Corporation Pollution Control 24,255
10,000 Aoki Corp. Home Builders 39,611
2,000 Aoyama Trading Co. Conglomerates 53,988
1,300 Arabian Oil Co. International Oil 49,841
11,000 Asahi Breweries Food & Beverage 119,419
3,000 Asahi Optical Co. <F92> Toys, Amusement &
Sporting Goods 10,944
15,000 Ashikaga Bank Banks 88,904
5,000 Asics Corp. <F92> Apparel & Textiles 13,448
6,000 Banyu Pharmaceutical Co. Drugs & Healthcare 63,377
6,000 Brother Industries Household Appliances &
Furnishings 30,104
7,000 Casio Computer Co. Toys, Amusement &
Sporting Goods 61,274
14,000 Chichibu Onoda Cement Construction Materials 70,517
5,000 Chiyoda Corp. Industrial Machinery 46,506
6,000 Chugai Pharmaceutical Co. Drugs & Healthcare 54,810
8,000 Citizen Watch Co., Ltd. Retail 54,849
15,000 Cosmo Oil Company International Oil 73,353
3,100 Credit Saison Co. Financial Services 65,187
2,000 CSK Corporation Business Services 56,726
9,000 Daicel Chemical Ind. Chemicals 47,269
10,000 Daido Steel Company Steel 44,501
3,000 Daifuku Co. Industrial Machinery 35,796
7,000 Daiichi Pharmaceutical Co. Drugs & Healthcare 97,902
6,000 Daikin Industries Industrial Machinery 47,826
5,000 Daikyo Inc. Real Estate 33,400
7,000 Daimaru Inc. Apparel & Textiles 44,501
20,000 Dainippon Ink Chemicals 85,090
5,000 Dainippon Screen Mfg. Co.<F92> Electonics 44,697
6,000 Daishowa Paper Mfg. Co.<F92> Paper 44,071
3,000 Daito Trust Construction Construction & Mining 26,407
4,000 Daiwa Kosho Lease Co. Real Estate 35,992
11,000 Denki Kagaku Kogyo K.K. Chemicals 37,009
7,000 Ebara Corp. Industrial Machinery 97,217
7,000 Eisai Co. Drugs & Healthcare 118,441
3,000 Ezaki Glico Co. Food & Beverage 24,793
8,000 Fujikura Industrial Machinery 50,624
12,000 Fujita Corp. Home Builders 54,575
3,000 Fujita Kanko Inc. Leisure 63,671
16,000 Furukawa Electric Co. Electrical Equipment 71,827
3,000 Gakken Co. <F92> Broadcasting 16,578
5,000 Gunze Limited Apparel & Textiles 27,874
5,000 Hankyu Deptartment Stores Retail 61,617
10,000 Haseko Corp. Home Builders 35,601
8,000 Hazama Corp. Home Builders 31,610
6,000 Higo Bank Banks 45,831
1,050 Hirose Electric Co. Electronics 67,060
9,000 Hokkaido Bank Banks 26,847
17,000 Hokuriku Bank Banks 99,760
9,000 Honshu Paper Co. Paper 51,230
3,000 House Food Corp. Food & Beverage 54,575
3,000 Hoya Corp. Drugs & Healthcare 88,024
6,000 Inax Corporation Construction Materials 54,105
5,000 Isetan Co. Retail 66,507
8,000 Ishihara Sangyo Kaisha<F92> Industrial Machinery 23,786
6,000 Itoham Foods Inc. Food & Beverage 43,953
6,000 Iwatani International Electric Utilities 28,109
4,000 Jaccs Co. Financial Services 36,461
27,000 Japan Energy Corp. Miscellaneous 77,373
3,000 Japan Metal & Chemicals<F92> Chemicals 15,551
9,000 Japan Steel Works Steel 21,830
2,000 Jeol<F92> Electronics 15,746
4,000 JGC Corp. Electronics 43,425
2,000 Kaken Pharmaceutical Co. Drugs & Healthcare 16,353
6,000 Kamigumi Co. Business Services 54,281
5,000 Kandenko Co. Home Builders 61,617
12,000 Kanebo<F92> Apparel & Textiles 23,708
9,000 Kaneka Corp. Chemicals 56,335
7,000 Kansai Paint Co. Chemicals 30,398
2,000 Katokichi Co. Food & Beverage 36,579
14,000 Kawasaki Kisen Kaisha<F92> Trucking & Freight Forwarding 37,518
12,000 Keihin Electric Express Railroads & Equipment 70,419
5,000 Kikkoman Corp. Food & Beverage 35,699
6,000 Kinden Corporation Home Builders 103,281
1,000 Kissei Pharmaceutical Co. Drugs & Healthcare 28,950
3,000 Kokuyo Co. Business Services 64,551
2,000 Komori Corporation Industrial Machinery 47,337
1,000 Konami Co. Business Services 22,495
9,000 Konica Corporation Photography 60,296
5,000 Koyo Seiko Co. Industrial Machinery 39,855
17,000 Kumagai Gumi Co. Construction Materials 65,177
6,000 Kurabo Industries Apparel & Textiles 20,422
8,000 Kuraray Co. Chemicals 79,026
5,000 Kureha Chemical Ind Co. Chemicals 19,659
3,000 Kurita Water Industries Business Services 83,623
11,000 Kyowa Hakko Kogyo Co. Drugs & Healthcare 102,098
2,000 Kyudenko Corp. Electrical Equipment 26,994
7,000 Lion Corp. Drugs & Healthcare 38,887
3,000 Maeda Road Construction Construction Materials 53,695
2,000 Makino Milling Machine<F92> Industrial Machinery 16,764
4,000 Makita Corp. Electrical Equipment 62,204
3,000 Marudai Food Co. Food & Beverage 20,245
7,000 Maruha Corp. <F92> Food & Beverage 20,539
7,000 Meiji Milk Products Co. Food & Beverage 38,134
9,000 Meiji Seika Kaisha Food & Beverage 49,205
10,000 Minebea Co. Industrial Machinery 81,178
3,000 Misawa Homes Co. Home Builders 23,356
12,000 Mitsubishi Gas Chemical Chemicals 52,345
11,000 Mitsubishi Oil Co. International Oil 87,359
8,000 Mitsubishi Paper Mills Paper 48,667
3,000 Mitsubishi Steel Mfg.<F92> Steel 15,052
4,000 Mitsubishi Warehouse Business Services 55,162
20,000 Mitsui Engineering &
Shipbuilding<F92> Industrial Machinery 43,816
12,000 Mitsui Mining & Smelting<F92> Mining 39,904
27,000 Mitsui Osk Lines<F92> Trucking & Freight Forwarding 70,771
3,000 Mitsui-Soko Co. Trucking & Freight Forwarding 19,864
19,000 Mitsui Toatsu Chemicals Chemicals 70,057
12,000 Mitsukoshi Retail 95,183
4,000 Mochida Pharmaceutical Drugs & Healthcare 51,641
2,000 Mori Seiki Co. Industrial Machinery 39,513
4,000 Nagase & Co. Chemicals 31,689
19,000 Nagoya Railroad Co. Railroads & Equipment 89,383
11,000 Nankai Electric Railway Railroads & Equipment 71,651
9,000 NGK Insulators Electrical Equipment 82,918
5,000 NGK Spark Plug Co. Industrial Machinery 68,463
11,000 Nichido Fire & Marine Insurance 82,302
7,000 Nichii Co. Retail 82,156
8,000 Nichirei Corp. <F92> Household Products 45,694
8,000 Nihon Cement Co. Construction Materials 49,215
8,000 Niigata Engineering Co. Industrial Machinery 24,255
3,000 Nippon Beet Sugar Mfg. Co. Food & Beverage 11,737
3,000 Nippon Comsys Corp. Computers & Business Equipment 31,689
3,000 Nippon Denko Co. Steel 10,181
14,000 Nippon Fire & Marine Insurance 75,309
13,000 Nippon Light Metal Co. Non-ferrous Metals 70,439
6,000 Nippon Meat Packers Food & Beverage 81,569
4,000 Nippon Sharyo Industrial Machinery 32,706
11,000 Nippon Sheet Glass Co. Containers & Glass 47,660
8,000 Nippon Shinpan Co. Financial Services 49,998
5,000 Nippon Shokubai Co. Chemicals 43,621
7,000 Nippon Suisan Kaisha<F92> Food & Beverage 28,412
7,000 Nishimatsu Construction Construction & Mining Equipment 78,732
6,000 Nisshinbo Industries Apparel & Textiles 53,284
3,000 Nissin Food Products Co. Food & Beverage 67,485
4,000 Nitto Denko Corp. Electronics 63,768
5,000 NOF Corp. Chemicals 25,429
4,000 Noritake Co. Toys, Amusement &
Sporting Goods 27,776
14,000 NSK Industrial Machinery 83,936
11,000 NTN Corp. Industrial Machinery 67,240
18,000 Obayashi Corp. Home Builders 133,972
4,000 Okamoto Industries Tires & Rubber 23,864
3,000 Okuma Corp. <F92> Industrial Machinery 22,153
6,000 Okumura Corp. Home Builders 52,462
7,000 Olympus Optical Co. Photography 65,382
7,000 Omron Corp. Electrical Equipment 163,627
4,000 Onward Kashiyama Co. Apparel & Textiles 55,162
8,000 Orient Corp. Financial Services 36,305
2,000 Orix Corp. Financial Services 70,419
9,000 Penta-Ocean Construction Home Builders 63,905
5,000 Pioneer Electronic Corp. Household Appliances &
Furnishings 76,776
4,000 Q.P. Corp. Conglomerates 32,080
7,000 Renown Apparel & Textiles 19,101
3,000 Rohm Co. <F92> Electronics 182,209
10,000 Sagami Railway Co. Railroads & Equipment 40,491
3,000 Sanden Corp. Electrical Equipment 17,018
6,000 Sankyo Aluminum Ind. Co. Aluminum 31,278
2,000 Sanrio Co. Retail 19,952
6,000 Sanwa Shutter Corp. Construction Materials 40,784
8,000 Sapporo Breweries Food & Beverage 68,385
3,000 Seiko Corporation Retail 20,510
4,000 Seino Transportation Co. Railroads & Equipment 61,812
6,000 Seiyu Apparel & Textiles 69,832
6,000 Settsu Corp. <F92> Paper 16,725
1,000 Shimachu Co. Retail 26,407
3,000 Shimano Inc. Leisure 55,748
9,000 Shionogi & Co. Drugs & Healthcare 75,348
10,000 Shiseido Co. Drugs & Healthcare 100,738
2,000 Shochiku Co. Leisure 20,148
3,000 Shokusan Jutaku Sogo Co. <F92> Construction Materials 9,477
26,000 Showa Denko K.K. <F92> Chemicals 76,287
3,000 Skylark Co. Hotels & Restaurants 46,653
8,000 Snow Brand Milk Food & Beverage 52,423
4,000 Sumitomo Forestry Co. Forest Products 56,335
14,000 Sumitomo Heavy Ind. Industrial Machinery 39,024
14,000 Sumitomo Metal Mining Co. Non-ferrous Metals 110,499
11,000 Sumitomo Osaka Cement Co. Construction Materials 44,432
3,000 Taiyo Uden Co. Electronics 29,928
5,000 Takara Shuzo Co. Household Products 43,816
3,000 Takara Standard Co. Food & Beverage 30,808
7,000 Takashimaya Co. Retail 97,217
2,000 Takuma Co. Telecommunication Services 25,429
6,000 Tanabe Seiyaku Co. Drugs & Healthcare 39,317
24,000 Teijin Chemicals 110,089
6,000 Teikoku Oil Co. International Oil 34,623
5,000 Toa Corporation Home Builders 33,938
440 Toho Co. Leisure 61,969
4,000 Tokyo Broadcasting Broadcasting 58,683
4,000 Tokyo Dome Corp. Leisure 60,639
4,000 Tokyo Electronic Power Co. Electronics 173,700
3,000 Tokyo Style Co. Apparel & Textiles 45,479
5,000 Tokyo Tatemono Co. Real Estate 20,148
7,000 Tokyotokeiba Co. Leisure 24,510
14,000 Tosoh Corp. <F92> Chemicals 61,480
5,000 Toyo Engineering Electronics 27,385
1,000 Toyo Exterior Co. Home Builders 20,930
3,000 Toyo Kanetsu K.K. Petroleum Services 12,059
17,000 Toyobo Co. Apparel & Textiles 55,866
7,000 Toyoda Automatic Loom Industrial Machinery 109,541
4,000 Tsubakimoto Chain Co. Industrial Machinery 18,778
2,000 Tsugami Corp. Industrial Machinery 10,074
21,000 Ube Industries<F92> Chemicals 69,421
2,000 Uni-Charm Corp. Household Products 44,990
1,000 Uniden Corp. Household Products 16,138
12,000 Unitika<F92> Chemicals 29,576
5,000 Yamaguchi Bank Banks 82,645
5,000 Yamaha Corp. Toys, Amusement &
Sporting Goods 79,711
9,000 Yamato Transport Co. Trucking & Freight Forwarding 96,826
6,000 Yamazaki Baking Co. Food & Beverage 106,215
6,000 Yokogawa Electric Corp. Electronics 45,772
----------
11,172,538
----------
MALAYSIA 0.5%
1,000 AMMB Holdings Financial Services 12,387
1,800 Amsteel Corp. Steel 1,254
100 Amsteel Corp. Rights to
Chocolate Products,
Expire 11/1/95 Steel -
200 Amsteel Corp. Rights to
Common Shares,
Expire 11/1/95 Steel -
333 Amsteel Corp. Warrants,
Expire 11/1/95 Steel 45
1,000 Aokam Perdana Paper 1,675
1,500 Berjaya Group Leisure 950
1,000 Berjaya Leisure Leisure 759
1,000 Commerce Asset-Holding Financial Services 4,955
2,000 DCB Holdings Financial Services 5,663
1,000 Edaran Otomobil Nasional Retail 7,865
1,000 Ekran Building Construction 2,536
2,000 Faber Group<F92> Leisure 1,699
2,000 Golden Hope Plantations Food & Beverages 3,146
1,000 Guinness Anchor Food & Beverages 1,691
1,000 Highlands & Lowlands Food & Beverages 1,557
1,000 Hong Leong Properties Real Estate 1,077
100 Hong Leong Properties Rights,
Expire 11/11/95 Real Estate -
1,000 Hume Industries Construction Materials 5,348
1,000 Idris Hydraulic<F92> Financial Services 1,136
1,000 IGB Corp. Real Estate 865
1,000 IOI Corp. Chemicals 936
250 IOI Corp. Rights,
Expire 12/19/95 Chemicals -
1,000 Jaya Tiasa Holdings Forest Products 2,989
1,000 Johan Holdings Industrial Machinery 735
1,000 Kedah Cement Holdings Construction Materials 1,557
1,000 Kuala Lumpur Kepong Food & Beverages 2,694
1,500 Land & General Forest Products 3,480
1,000 Landmarks Hotels & Restaurants 1,125
1,000 Leader Universal Holdings Electrical Equipment 2,694
125 Lion Land Berhad Real Estate 135
2,000 Magnum Corp. Leisure 3,398
2,000 Malaysian Airline System Air Travel 5,466
1,000 Malayan Cement Construction Materials 1,746
2,000 Malayan United Industies Financial Services 1,581
2,333 Malaysia Int'l. Shipping Containers & Glass 6,147
1,000 Malaysia Mining Corp. Mining 1,337
1,000 Malaysian Mosaics Retail 1,121
1,000 Malaysian Resources Corp. Mining 1,455
2,000 MBF Capital Financial Services 1,887
1,000 Metroplex Real Estate 783
2,000 Mulpha International Conglomerates 1,825
1,000 Multi-Purpose Holdings Conglomerates 1,337
1,000 Nestle Food & Beverage 7,039
1,000 Perlis Plantations Mining 2,969
1,000 Perusahaan Otomobl Automobiles 3,578
1,000 Promet Petroleum Services 916
2,000 Public Bank Banks 3,539
1,000 Rashid Hussain Financial Services 2,477
1,000 RJ Reynolds Food & Beverage 2,045
1,000 Rothmans Pall Mall Tobacco 7,393
1,000 Selangor Properties Real Estate 900
1,000 Shell Refining Co. International Oil 2,989
2,000 Ta Enterprise<F92> Financial Services 2,289
1,000 Tan Chong Motor Holdings Industrial Machinery 940
2,000 Technology Resources
Industries<F92> Electronics 5,073
1,000 Time Engineering Electronics 2,556
1,000 UMW Holdings Industrial Machinery 2,379
1,000 United Engineers Industrial Machinery 6,213
1,000 YTL Corp. Home Builders 5,427
-------
157,758
-------
NETHERLANDS 2.5%
5,674 Ahold NV Retail 214,737
987 Getronics NV Computers & Business Equipment 47,036
149 Hollandsche Benton Groep Home Builders 22,443
1,460 Hoogovens (Kon.) Steel 49,896
1,100 IHC Caland NV Home Builders 31,258
4,204 KLM<F92> Air Travel 138,617
4,650 Koninklijke KNP BT NV Paper 139,785
1,042 Nedlloyd (Kon.) Trucking & Freight Forwarding 26,444
754 OCE-Van der Grinten NV Computers & Business Equipment 43,185
1,399 Pakhoed (Kon.) Petroleum Services 38,072
1,395 Stad Rotterdam Insurance 38,404
1,354 Stork NV Industrial Machinery 32,734
-------
822,611
-------
NEW ZEALAND 0.4%
27,075 Brierley Investments Limited Investment Companies 21,090
17,600 Carter Holt Harvey Forest Products 42,057
1,027 Fisher & Paykel Industries Household Appliances &
Furnishings 3,356
15,100 Fletcher Challenge Forest Products 39,970
8,257 Fletcher Challenge
Forest Division Forest Products 11,392
5,600 Lion Nathan Limited Food & Beverage 12,716
1,000 Wilson & Horton Publishing 5,941
-------
136,522
-------
NORWAY 0.9%
1,000 Aker A Conglomerates 12,602
1,000 Bergesen (Dy) A Trucking & Freight Forwarding 20,710
400 Bergesen (Dy) B,
Non-Voting Preferred Trucking & Freight Forwarding 8,220
600 Dyno Industrier Chemicals 12,137
1,200 Elkem Non-ferrous Metals 13,004
1,775 Hafslund Nycomed A Drugs & Healthcare 50,722
722 Hafslund Nycomed B Drugs & Healthcare 20,168
1,100 Kvaerner As Agricultural Machinery 46,267
800 Leif Hoegh & Co. Trucking & Freight Forwarding 11,559
1,200 Orkla A Conglomerates 62,032
600 Petroleum Geo-Services<F92> Energy Equipment & Services 11,366
6,300 Uni Storebrand Ord<F92> Insurance 31,758
500 Unitor Containers & Glass 6,181
-------
306,726
-------
SINGAPORE 0.5%
2,000 Amcol Holdings Electronics 4,411
4,400 City Developments Real Estate 27,216
1,000 Cycle & Carriage Automobiles 8,907
4,000 DBS Land Real Estate 11,820
1,000 First Capital Corp. Hotels & Restaurants 2,700
1,000 Fraser & Neave Food & Beverage 11,805
2,000 Hai Sun Hup Group Trucking & Freight Forwarding 1,280
1,000 Haw Par Bros. Int'l. Conglomerates 2,071
2,000 Hotel Properties Hotels & Restaurants 3,026
1,000 Inchcape Berhad Business Services 3,238
1,000 Jurong Shipyard Industrial Machinery 6,645
3,000 Keppel Corp. Industrial Machinery 24,601
2,000 Lum Chang Holdings Home Builders 1,626
1,200 Metro Holdings Retail 5,090
2,000 Natsteel Steel 4,029
4,000 Neptune Orient Lines Nol Trucking & Freight Forwarding 4,383
1,000 Overseas Union Ent. Leisure 5,302
2,000 Parkway Holdings Real Estate 5,062
1,000 Shangri-La Hotel Hotels & Restaurants 3,195
200 Singapore Press Holdings Publishing 3,125
3,000 Straits Steamship Land Conglomerates 8,398
2,000 Straits Trading Co. Non-ferrous Metals 4,355
8,000 UIC United Industrial Conglomerates 7,126
3,000 United Overseas Land Real Estate 5,387
-------
164,798
-------
SPAIN 3.5%
48 Acerinox Aluminum 599
535 Acerinox Registered Aluminum 56,279
800 Alba (Corp Financiera) Conglomerates 44,172
10,414 Autopistas CESA (Acesa) Automobiles 97,112
7,850 BCO Central Hispano Registered Banks 162,458
1,300 Corporacion Mapfire Insurance 66,462
2,700 Dragados Y Construccion Home Builders 35,337
2,300 Ebro Agricolas Food & Beverage 22,859
1,000 ENCE (Empresa Nac Celulosa) Forest Products 18,282
1,050 Fasa Renault Automobiles 33,497
700 Fomento Const Y Contra Home Builders 49,358
1,800 Gas Natural SDG SA Electric Utilities 246,479
1,050 Metrovacesa Real Estate 31,951
1,900 Urbis (Inmobilaria) Real Estate 9,201
350 Portland Valderrivas Construction Materials 23,047
1,750 Tabacalera Food & Beverage 58,476
13,900 Union Electrica Fenosa Electric Utilities 64,582
2,400 Uralita Construction Materials 24,147
2,050 Vallehermoso SA Real Estate 33,119
1,100 Viscofan Aluminum 13,767
407 Zardoya Otis Industrial Machinery 39,685
---------
1,130,869
---------
SWEDEN 1.7%
1,800 AGA Series A Chemicals 24,113
1,500 AGA Series B Chemicals 19,417
1,700 Atlas Copco Series A Industrial Machinery 25,716
800 Atlas Copco Series B Construction & Mining 12,102
400 Autoliv Industrial Components 22,939
1,000 Electrolux Series B Household Appliances &
Furnishings 42,748
200 Esselte Series A Electronics 3,025
700 Euroc Series A Construction Materials 17,385
600 Hennes & Mauritz Series B Retail 39,196
300 Securitas Series B Business Services 11,605
7,300 Skand. Enskilda Banken
Series A Banks 49,226
1,400 Skandia Foersaekrings Insurance 35,508
1,700 Skanska Series B Home Builders 55,015
700 SKF Series A Construction & Mining 13,013
900 SKF Series B Industrial Machinery 17,069
3,400 Stora Kopparbergs Series A Forest Products 41,198
1,000 Stora Kopparbergs Series B Forest Products 12,117
2,700 Svenska Cellulosa Forest Products 46,127
2,900 Svenska Handelsbk Series A Banks 50,853
300 Svenska Handelsbk Series B Banks 5,035
1,600 Trelleborg Series B Mining 17,942
-------
561,349
-------
SWITZERLAND 2.1%
148 Adia Porteur<F92> Business Services 24,482
50 Alusuisse-Lonza Hldg Non-ferrous Metals 38,187
100 Alusuisse-Lonza Hldg
Registered Aluminum 76,111
80 Danzas Holding Household Products 14,289
15 Fischer (Georg) Inhaber Ag Industrial Machinery 20,722
15 Fischer (Georg) Inhaber Ag
Registered Industrial Machinery 3,960
40 Forbo Holding Registered Construction Materials 16,859
700 Holderbank Fin Warrants,
Expire 12/20/95 Financial Services 832
148 Holderbk FN Glarus Financial Services 118,765
55 Interdiscount Holding<F92> Retail Trade 6,291
50 Interdiscount Holding
Warrants, Expire 11/15/96 Retail Trade 15
10 Jelmoli Holding Retail Trade 4,795
35 Jelmoli Holding Registered Retail Trade 3,326
10 Kuoni Reisen Series B Leisure 15,926
95 Merkur Holding Ag Registered Retail Trade 21,148
15 Moevenpick Holdings Leisure 6,243
10 Moevenpick Holdings Registered Leisure 4,751
35 Schindler Holding Ag Industrial Machinery 32,798
40 SGS Holding Business Services 75,495
50 Sika Finanz Inhaber Ag Construction Materials 12,846
90 SMH Ag Neuenburg Toys, Amusement &
Sporting Goods 56,067
355 SMH Ag Neuenburg Registered Toys, Amusement &
Sporting Goods 47,635
20 Sulzer Ag Industrial Machinery 11,967
65 Sulzer Ag Registered Industrial Machinery 41,465
55 Swissair<F92> Air Travel 34,602
--------
689,577
Total Common and Preferred Stocks
(Cost) $33,582,527 31,737,386
SHORT-TERM INVESTMENTS 3.1%
UNITED STATES 3.1%
332,000 Short-Term Investments Co.
Prime Portfolio Investment Company 332,000
682,000 Financial Square Prime
Obligation Fund Investment Company 682,000
-------
Total Short-Term Investments
(Cost $1,014,000) 1,014,000
Total Investments 99.8%
(Cost $34,596,527) 32,751,386
Other Assets, less
Liabilities 0.2% 68,772
TOTAL NET ASSETS 100.0% 32,820,158
<F92>Non-income producing
See notes to the financial statements.
BALANCED FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
MIDCORE GROWTH FUND
SPECIAL GROWTH FUND
INTERNATIONAL EQUITY FUND
NOTES TO THE FINANCIAL STATEMENTS
1.ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988, as
a Wisconsin Corporation and is registered as an open-end management investment
company under the Investment Company Act of 1940. The Balanced Fund, the Growth
and Income Fund, the Equity Index Fund, the MidCore Growth Fund, the Special
Growth Fund, and the International Equity Fund (the "Funds") are separate,
diversified investment portfolios of the Company. The Special Growth Fund
commenced operations on December 28, 1989; the Growth and Income Fund and Equity
Index Fund commenced operations on December 29, 1989; the Balanced Fund
commenced operations on March 30, 1992; the MidCore Growth Fund commenced
operations on December 29, 1992; and the International Equity Fund commenced
operations on April 28, 1994.
The costs, in thousands, incurred in connection with the organization, initial
registration and public offering of shares aggregating $25, $46, $44, $14, $45
and $27 for the Balanced, Growth and Income, Equity Index, MidCore Growth,
Special Growth and International Equity Funds, respectively, have been paid by
the Funds. These costs are being amortized over the period of benefit, but not
to exceed sixty months from each Fund's commencement of operations.
The Company has issued two classes of Fund shares in each of the Funds:Series
A and Series Institutional. The Series A shares are subject to a 0.25% service
organization fee and an initial sales charge imposed at the time of purchase, in
accordance with the Funds' prospectus. The maximum sales charge is 4% of the
offering price or 4.16% of the net asset value. Each class of shares for each
Fund has identical rights and privileges except with respect to service
organization fees paid by Series A shares, voting rights on matters affecting a
single class of shares and the exchange privileges of each class of shares.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - Securities which are traded on a recognized stock
exchange are valued at the last sale price on the securities exchange on which
such securities are primarily traded or at the last sale price on a national
securities exchange. Exchange-traded securities for which there were no
transactions are valued at the current bid prices, with the exception of the
International Equity Fund, which is valued at the average of the current bid and
asked prices. Securities traded on only over-the-counter markets are valued on
the basis of closing over-the-counter bid prices. Instruments with a remaining
maturity of 60 days or less are valued on an amortized cost basis. Securities
for which market quotations are not readily available and other assets are
valued at fair value as determined by the investment adviser under the
supervision of the Board of Directors. Portfolio securities which are primarily
traded on foreign securities exchanges are generally valued at the preceding
closing values of such securities on their respective exchanges, except when an
occurrence subsequent to the time a value was so established is likely to have
changed such value. In such an event, the fair value of those securities is
determined through the consideration of other factors by or under the direction
of the Board of Directors. Quotations of foreign securities in foreign currency
are converted to United States ("U.S.") dollar equivalents using the foreign
exchange quotation in effect at the time net asset value is computed. Foreign
securities held by the International Equity Fund may trade in their local
markets on days the U.S. exchanges are closed, and the International Equity
Fund's net asset value may, therefore, change on days when investors may not
purchase or redeem Fund shares.
b) Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied to date with the provisions of the Internal
Revenue Code available to regulated investment companies and intend to continue
to so comply in future years.
c) Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, administration and
certain shareowner service fees. Expenses that are not directly attributable to
a portfolio are typically allocated among the Company's portfolios in proportion
to their respective net assets, number of shareowner accounts, or net sales,
where applicable. Net investment income other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative net asset value of outstanding shares of each
class of shares at the beginning of the day (after adjusting for the current
day's capital share activity of the respective class).
d) Distributions to Shareowners - Dividends from net investment income are
declared and paid quarterly, for the Balanced, Growth and Income and Equity
Index Funds and annually for the MidCore Growth, Special Growth and
International Equity Funds. Distributions of net realized capital gains, if any,
will be declared at least annually.
e) Futures Contracts - The Equity Index Fund may utilize futures contracts to a
limited extent. The primary risks associated with the use of futures contracts
include an imperfect correlation between the change in market value of the
securities held by the Fund and the prices of futures contracts and the
possibility of an illiquid market. Futures contracts are valued based upon their
quoted daily settlement prices. Changes in initial settlement value are
accounted for as unrealized appreciation (depreciation) until the contracts are
terminated at which time realized gains and losses are recognized.
f) When-Issued Securities - The Funds may purchase securities on a when-issued
or delayed delivery basis. Although the payment and interest terms of these
securities are established at the time the purchaser enters into the agreement,
these securities may be delivered and paid for at a future date, generally
within 45 days. The Fund records purchases of when-issued securities and
reflects the values of such securities in determining net asset value in the
same manner as other portfolio securities. The Fund segregates and maintains at
all times cash, cash equivalents, or other high-quality liquid debt securities
in an amount at least equal to the amount of outstanding commitments for when-
issued securities.
g) Unregistered Security - The Balanced Fund owns an investment security which
is unregistered and thus restricted as to resale. This security is valued by the
Fund after giving due consideration to pertinent factors including recent
private sales, market conditions and the issuer's financial performance. Where
future disposition of this security requires registration under the Securities
Act of 1933, the Fund has the right to include its security in such
registration, generally without cost to the Fund. The Fund has no right to
require registration of unregistered securities.
h) Foreign Currency Translations - The books and records of the International
Equity Fund are maintained in U.S. dollars. Foreign currencies, investments, and
other assets and liabilities denominated in foreign currencies are translated
into U.S. dollars at the exchange rates prevailing at the end of the period, and
purchases and sales of investment securities, and income and expenses
denominated in foreign currencies are translated on the respective dates of such
transactions. Unrealized gains and losses on investments which result from
changes in foreign currency exchange rates have been included in the unrealized
net appreciation (depreciation) on investments. Foreign currency exchange gains
and losses included in net appreciation (depreciation) on foreign currency and
net realized gains and losses on foreign currency include foreign currency gains
and losses between trade date and settlement date on investment securities
transactions, foreign currency transactions and the difference between the
amounts of interest and dividends recorded on the books of the Fund and the
amount actually received. The portion of the foreign currency gains and losses
related to fluctuation in exchange rates between the initial purchase trade date
and subsequent sale trade date of a security is included in realized gains and
losses on investment transactions.
i) Other - Investment and shareowner transactions are recorded no later than the
first business day after the trade date. The Funds determine the gain or loss
realized from the investment transactions by comparing the original cost of the
security lot sold with the net sale proceeds. Dividend income is recognized on
the ex-dividend date or as soon as information is available to the Funds, and
interest income is recognized on an accrual basis. Generally accepted accounting
principles require that permanent financial reporting and tax differences be
reclassified to capital stock.
3.CAPITAL SHARE TRANSACTIONS
On January 9, 1995, all previously existing series of shares of each Fund were
reclassified as Series A shares. Effective January 9, 1995, Institutional
shareowners exchanged their Series A shares for the Funds' Institutional series
shares. Transactions in capital shares for the Funds, in thousands, were as
follows:
BALANCED GROWTH AND INCOME EQUITY INDEX
FUND FUND FUND
--------------- -------------- --------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
PERIOD FROM JAN. 10,
TO OCT. 31, 1995:
Series A shares:
Reclassification of
previous class $101,671 4,722 $159,134 7,206 $107,441 3,306
Exchange out to Series
Institutional shares (85,645) (3,978) (125,287) (5,674) (94,927)(2,921)
Shares sold 4,044 166 5,748 225 6,511 171
Shares issued to owners
in reinvestment of
dividends 279 12 358 14 222 5
Shares redeemed (1,911) (79) (5,802) (235) (4,042) (107)
------- ---- ------- ----- ------- -----
Net increase $ 18,438 843 $34,151 1,536 $15,205 454
======= ===== ====== ===== ====== =====
Series Institutional shares:
Exchange in from
Series A shares $ 85,645 3,978 $125,287 5,674 $ 94,927 2,921
Shares sold 34,956 1,469 27,970 1,112 32,025 852
Shares issued to owners
in revinvestment of
dividends 1,518 62 1,572 61 1,803 47
Shares redeemed (34,962) (1,473) (24,218) (956) (17,405) (458)
-------- ------- -------- ----- -------- -----
Net increase $ 87,157 4,036 $130,611 5,891 $111,350 3,362
======= ===== ======= ===== ======= =====
PERIOD FROM NOV. 1, 1994
TO JAN. 9, 1995:
Previous class:
Reclassification to
Series A shares $(101,671) (4,722)$(159,134) (7,206)$(107,441)(3,306)
Shares sold 12,996 608 5,431 241 5,050 155
Shares issued to owners
in reinvestment of
dividends 528 24 4,848 218 868 27
Shares redeemed (4,138) (193) (8,009) (358) (3,100) (95)
------- ----- ------- ----- ------- ----
Net (decrease) $ (92,285) (4,283)$(156,864) (7,105)$(104,623)(3,219)
======= ====== ======== ====== ======= ======
FOR THE YEAR ENDED
OCTOBER 31, 1994:
Shares sold $ 28,851 1,287 $ 34,645 1,503 $ 44,189 1,348
Shares issued to owners
in reinvestment of
dividends 1,738 79 6,597 291 1,769 55
Shares redeemed (15,322) (691) (33,938) (1,471) (23,637) (721)
Net increase $ 15,267 675 $ 7,304 323 $ 22,321 682
MIDCORE GROWTH SPECIAL GROWTH INTERNATIONAL
FUND FUND EQUITY FUND
--------------- -------------- --------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
PERIOD FROM JAN. 10
TO OCT. 31, 1995:
Series A shares:
Reclassification of
previous class $114,588 5,531 $380,463 11,829 $ 24,309 1,297
Exchange to Series
Institutional (106,247) (5,128) (313,914) (9,761) (23,001)(1,228)
Shares sold 3,309 141 20,357 553 878 46
Shares issued to owners
in reinvestment of
dividends 1 - - - - -
Shares redeemed (3,301) (149) (18,782) (513) (574) (30)
------- ----- -------- ----- ----- ----
Net increase $ 8,350 395 $68,124 2,108 $1,612 85
======= ===== ======= ====== ======= =====
Series Institutional
shares:
Exchange in
from Series A $106,247 5,128 $313,914 9,761 $ 23,001 1,228
Shares sold 21,193 911 78,933 2,180 8,978 463
Shares issued to owners
in revinvestment of
dividends 105 5 39 1 - -
Shares redeemed (18,595) (794) (54,904) (1,472) (1,285) (66)
-------- ----- -------- ------- ------- ----
Net increase $108,950 5,250 $337,982 10,470 $30,694 1,625
======= ===== ======= ====== ====== =====
PERIOD FROM NOV. 1, 1994
TO JAN. 9, 1995:
Previous class:
Reclassification to
Series A shares $(114,588) (5,531)$(380,463)(11,829) $(24,309)(1,297)
Shares sold 25,253 1,226 31,095 978 2,199 114
Shares issued to owners
in reinvestment of
dividends 116 5 2,291 71 59 3
Shares redeemed (20,110) (973) (36,576) (1,139) (156) (8)
-------- ----- -------- ------- ----- ---
Net (decrease) $(109,329) (5,273)$(383,653)(11,919) $(22,207)(1,188)
======== ===== ======= ====== ====== =====
FOR THE YEAR ENDED
OCTOBER 31, 1994<F93>:
Shares sold $ 45,282 2,117 $209,100 6,493 $ 24,430 1,222
Shares issued to owners
in reinvestment of
dividends 214 10 436 14 - -
Shares redeemed (17,031) (801) (171,571) (5,323) (680) (34)
-------- ----- --------- ------- ----- ----
Net increase $ 28,465 1,326 $ 37,965 1,184 $ 23,750 1,188
======== ===== ======= ====== ====== =====
<F93>For the period April 28, 1994 through October 31, 1994 for International
Equity Fund.
4.INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the year ended October 31, 1995, were
as follows:
GROWTH AND EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED INCOME INDEX GROWTH GROWTH EQUITY
------ ----- ------ ------ ------
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
Purchases:
U.S. Government $17,102 - - - - -
Other 61,887 $80,249 $24,791 $73,142 $320,229 $14,946
Sales:
U.S. Government 14,091 - - - - -
Other 49,665 84,312 5,643 60,497 320,809 4,161
Equity Index Fund transactions in futures contracts during the period October
31, 1994 to October 31, 1995, in thousands, were as follows:
AGGREGATE
NUMBER OF FACE VALUE OF
CONTRACTS CONTRACTS <F94>
--------- --------------
Outstanding at October 31, 1994 22 $ 5,138
Contracts opened 227 59,470
Contracts closed (220) (56,173)
Outstanding at October 31, 1995 29 $ 8,435
<F94>The aggregate face value of contracts is computed on the date each contract
is opened.
The number of futures contracts and gross unrealized appreciation, in thousands,
as of October 31, 1995 were as follows:
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
--------- ------------
S&P 500 Financial Futures Contract
Expiration date 12/95<F95> 29 $31
<F95>At October 31, 1995, U.S. Treasury Bills of $330, in thousands, were held
as collateral by the custodian in an initial margin account in connection with
open futures contracts held by the Equity Index Fund.
The International Equity Fund enters into foreign currency forward contracts to
hedge against foreign currency risk on unsettled trades.
At October 31, 1995, gross unrealized appreciation and depreciation of
investments for federal tax purposes, in thousands, were as follows:
GROWTH EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED AND INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
Appreciation $22,532 $40,340 $47,904 $36,632 $130,604 $ 1,871
(Depreciation) (1,897) (881) (2,589) (1,880) (14,503) (3,720)
------- ----- ------- ------- -------- -------
Net unrealized
appreciation
(depreciation) on
investments $20,635 $39,459 $45,315 $34,752 $116,101 $(1,849)
====== ====== ====== ====== ======= ======
At October 31, 1995, the cost of investments, in thousands, for federal income
tax purposes was $104,602, $168,127, $111,231, $109,910, $394,568 and $34,601
for the Balanced, Growth and Income, Equity Index, MidCore Growth, Special
Growth and International Equity Funds, respectively.
At October 31, 1995, the Midcore Growth Fund had accumulated net realized
capital loss carryovers, in thousands, of $295 expiring in 2001. The MidCore
Growth Fund had accumulated net realized capital loss carryovers, in thousands,
of $4,704, expiring in 2002. To the extent the MidCore Growth Fund realizes
future net capital gains, taxable distributions to its shareowners will be
offset by any unused capital loss carryover. For the year ended October 31,
1995, the Balanced and MidCore Growth Funds utilized, in thousands, capital loss
carryovers of $1,398 and $2,666, respectively. For the year ended October 31,
1995, the following percent of dividends paid from net investment income
qualifies for the dividend received deduction available to corporate
stockholders:Balanced Fund 17%, Growth and Income Fund 100%, Equity Index Fund
90% and MidCore Growth Fund 100%. In addition, the Special Growth Fund's capital
gain distribution of $2,571, in thousands, contains $116, in thousands, of
ordinary income that qualifies for an 8% dividend received deduction available
to corporate shareholders.
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, the Adviser is entitled to receive a fee,
calculated daily and payable monthly, at the annual rates presented below as
applied to each Fund's daily net assets. FIRMCOentered into a Sub-Advisory
Agreement with State Street Bank and Trust Company (the "Sub-Adviser") for the
International Equity Fund. The Sub-Adviser is a wholly-owned subsidiary of State
Street Boston Corporation, a bank holding company. Pursuant to its Sub-Advisory
Agreement with FIRMCO, the Sub-Adviser is entitled to receive a fee from FIRMCO,
calculated daily and payable monthly, at the annual rate presented below as
applied to the International Equity Fund's daily net assets.
For the period ended October 31, 1995, FIRMCO voluntarily waived the following
fees, in thousands, by Fund:
GROWTH EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED AND INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
Annual Rate 0.75% 0.75% 0.25% 0.75% 0.75% <F96><F97>
Fees waived $267 $69 - $62 $48 $312
<F96>FIRMCO is entitled to receive a fee, calculated daily and payable monthly,
at the annual rate of 1.50% of the Fund's first $25 million of average daily net
assets, 1.45% on the next $25 million, 1.40% on the next $50 million and 1.35%
of the Fund's average daily net assets in excess of $100 million.
<F97>to its Sub-Advisory Agreement with FIRMCO, the Sub-Adviser is entitled to
receive a fee from FIRMCO, calculated daily and payable monthly, at the annual
rate of 0.40% of the Fund's first $25 million of average daily net assets, 0.35%
on the next $25 million, 0.30% on the next $50 million and 0.25% of the Fund's
average daily net assets in excess of $100 million.
State Street Bank and Trust Company serves as custodian and accounting
services agent for the International Equity Fund, and Firstar Trust Company, an
affiliate of FIRMCO, serves as custodian and accounting services agent for the
remaining Funds. Firstar Trust Company serves as transfer agent for all the
Funds.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, computed daily and
payable monthly, at the annual rate of 0.125% of the Company's first $2 billion
of average aggregate daily net assets, plus 0.10% of the Company's average
aggregate daily net assets in excess of $2 billion. For the year ended October
31, 1995, $83, $134, $98, $90, $346 and $20 of administration fees, in
thousands, were voluntarily waived for the Balanced, Growth and Income, Equity
Index, MidCore Growth, Special Growth and International Equity Funds,
respectively.
The Company has entered into Servicing Agreements with certain Service
Organizations, including FIRMCOaffiliates, for the Series A class of shares. The
Service Organizations are entitled to receive fees from the Funds up to the
annual rate of 0.25% of the average daily net asset value of the Series A Shares
for certain support and/or distribution services to customers of the Service
Organizations who are beneficial owners of Fund Series A Shares. These services
may include assisting customers in processing purchase, exchange and redemption
requests; processing dividend and distribution payments from the Funds; and
providing information periodically to customers showing their positions in Fund
Series A Shares. Service Organization fees, in thousands, paid by the Balanced,
Growth and Income, Equity Index, MidCore Growth, Special Growth and
International Equity Funds to FIRMCOaffiliates aggregated $32, $64, $25, $15,
$130 and $3 respectively, for the year ended October 31, 1995.
Each Director of the Company who is not affiliated with FIRMCO receives an
annual fee from the Company for service as a Director and is eligible to
participate in a deferred compensation plan with respect to these fees.
Participants in the plan may designate their deferred Director's fees as if
invested in any one of the Portico Funds (with the exception of the MicroCap
Fund) or in 90-day U.S. Treasury bills. The value of each Director's deferred
compensation account will increase or decrease as if it were invested in shares
of the selected Portico Funds or 90-day U.S. Treasury bills. The Funds maintain
their proportionate share of the Company's liability for deferred fees.
6. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in
U.S.companies and the U.S. government. These risks include revaluation of
currencies and future adverse political and economic developments. Moreover,
securities of many foreign companies and foreign governments and their markets
may be less liquid and their prices more volatile than those of securities of
comparable U.S. companies and the U.S.Government.
7. DISTRIBUTIONS
On November 8, 1995, a distribution of approximately $4.58 per share (including
$1.55 taxable to shareowners as ordinary income dividends and $3.03 applicable
to long-term capital gains), aggregating $57,481, in thousands, was paid by the
Special Growth Fund to the shareowners of record on November 7, 1995, of both
the Series A and Series Institutional Shares.
On November 8, 1995, a long-term capital gain distribution of approximately
$1.19 per share aggregating $8,837, in thousands, was paid by the Growth and
Income Fund to the shareowners of record on November 7, 1995, of both the Series
A and Series Institutional Shares.
Report of Independent Accountants
To the Board of Directors and Shareholders of the Portico Balanced Fund, the
Portico Growth and Income Fund, the Portico Equity Index Fund, the Portico
MidCore Growth Fund, the Portico Special Growth Fund, and the Portico
International Equity Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedules of investments, 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 the Portico Balanced Fund, the
Portico Growth and Income Fund, the Portico Equity Index Fund, the Portico
MidCore Growth Fund, the Portico Special Growth Fund and the Portico
International Equity Fund (six of the portfolios of Portico Funds, Inc. (the
"Funds")) at October 31, 1995, the results of each of their operations for the
year then ended, the changes in each of their net assets for the year ended
October 31, 1995, and for each of the other periods indicated, and each of their
financial highlights for the year ended October 31, 1995, and for each of the
other periods indicated, all in conformity with generally accepted accounting
principles. 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 generally accepted auditing standards 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 October 31, 1995, by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse
Milwaukee, Wisconsin
November 29, 1995
- -Portico Funds are available through:
- the Portico Funds Center,
- Investment Specialists who are registered representatives of Elan Investment
Services, Inc., a registered broker/dealer, NASD and SIPC member,
- and through selected shareholder organizations.
This report is authorized for distribution only when preceded or accompanied by
a current prospectus.
To Open an Account or Request Information
1-800-982-8909
1-414-287-3710
For Account Balances and Investor Services
1-800-228-1024
1-414-287-3808
Portico Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
- --------------------------------------------------------------------------
ANNUAL REPORT
October 31, 1995
RETAIL CLASS
BALANCED FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
MIDCORE GROWTH FUND
SPECIAL GROWTH FUND
INTERNATIONAL EQUITY FUND
NOTICE TO INVESTORS
- -Shares of Portico Funds:
- ARE NOT INSURED BY THE
FDIC, the US Government or any
other governmental agency;
- are not bank deposits or obligations
of or guaranteed by Firstar Bank, its parent company or its affiliates;
- are subject to investment risks,
including possible loss of principal; and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and an
independent third-party distributor.
- -Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
Portico Funds, Inc.
DECEMBER 1995
Dear Shareowner:
INVESTMENT REVIEW
Bond and stock market returns posted strong gains during our 1995 fiscal year
with the S&P 500 gaining 26.4% and the Lehman Brothers Government/Corporate
Bond Index up 16.2%. Of particular note, over the past five years ended
October 31, 1995, Portico Special Growth and Portico Bond IMMDEX/TM Funds
returned 21.2% and 10.2% (no load), respectively, comfortably exceeding
the average return of similarly invested funds. During 1995, we launched
Portico MicroCap Fund, a capital appreciation fund investing in very
small companies.<F98> And, as we look to the future, we will consider
additional new fund offerings and opportunities.
The Portico Fund Family is participating in the secular shift from savings to
investments. With almost $3 billion in Portico assets, an expanding family of
funds designed to meet diverse investor needs and competitive performance
records, we are optimistic about the coming year.
MARKET OUTLOOK
Last December, we accurately forecast a Gross Domestic Product (GDP) slowdown, a
decline in long-term interest rates, and improving price/earnings ratios for
persistent growth companies. This resulted in improved relative and above normal
absolute returns for equity funds and attractive investment results for the
fixed-income market. On the other hand, our expectation for a 3-4% increase in
the 1995 Consumer Price Index (CPI) (with raw material price pressures offset by
subdued wage gains) and increased stock market volatility were overly
pessimistic. As a whole, the favorable investment climate forecast did lead to a
well above average 1995 year for stock and bond returns in general and in the
Portico twin disciplines (structured fixed-income and growth equity) in
particular.
For 1996, our market outlook is predicated on the following economic and
investment trends:
1. LOW NOMINAL GDP AND RESILIENT "REAL ECONOMIC GROWTH". Well into the fifth
year of an economic expansion, we expect 2-3% "real" economic growth and
continued decelerating levels of inflation (the consumption deflator, a good
current market basket index, rose only 1.7% over the past year) combining for
5% nominal growth versus the 10% average during the 1980s.
2. A FEDERAL BUDGET AGREEMENT built on a recalculated CPI, modestly enhanced
economic growth assumptions, and a modest reduction in the growth rate of the
key discretionary spending programs (Medicare/Medicaid).
3. Continued disinflationary productivity gains and expanding pockets of actual
price deflation (technology and industrial commodities) along with the
previously mentioned CPI recalculation will produce 1996 INFLATION OF 1.5-
2.5%.
4. INVESTOR FRIENDLY TAX INITIATIVES for 1996, including a reduction in the
capital gains tax rate (but no indexing), increased estate limits and expanded
IRAs.
5. Continued emergence of the UNITED STATES AS THE "MARKET OF CHOICE" for the
increasingly one market world of global investors.
6. TREASURY BOND YIELDS, WHICH HAVE DECLINED OVER 2% THIS YEAR, WILL AT LEAST
RETEST THE SEPTEMBER 1993 LOW YIELD OF 5.8%. Short-term market yields,
which have only declined about .5%, will fall more dramatically, perhaps by
3% over the next year. The unusually high inflation-adjusted ("real")
yields currently available, along with multi-economic cycle lows in monetary
growth, suggest a potential downside surprise in economic activity.
7. CORPORATE PROFIT GROWTH WILL DECELERATE steadily with the potential for flat
annualized comparisons during 1996.
8. FOR STOCK PRICES, A MODESTLY ABOVE AVERAGE HISTORICAL RETURN (more than 11%)
with continued outperformance of smaller company shares.
As always, we appreciate your continued confidence in the Portico Family of
Funds and urge you to read the portfolio reviews that follow.
J. Scott Harkness, CFA Mary Ellen Stanek, CFA
Chairman/Chief Investment Officer President
Firstar Investment Research & Management Company
<F98> Average annual total returns based on maximum offering price (4% sales
charge) ended October 31, 1995 for Portico Special Growth Fund are as follows:1
yr:20.6%; 3 yrs:12.9%; 5 yrs: 20.2%; Inception (12/28/89):14.9%. Average annual
total returns based on the maximum offering price (2% sales charge) for the same
period for Portico Bond IMMDEX/TM Fund are:1 yr:13.8%; 3 yrs:7.4%; 5 yrs:9.7%;
Inception (12/29/89):9.0%. In the best interest of investors and to keep the
integrity of the Fund in place, Portico MicroCap Fund closed on December 5,
1995. For more complete information about Portico Bond IMMDEX/TM Fund, including
charges and expenses, obtain a prospectus by calling the Portico Funds Center at
1-800-982-8909. Read it carefully before you invest or send money.
BALANCED FUND
Portico Balanced Fund had an outstanding year for the fiscal year ended October
31, 1995, appreciating 19.6% (no load). This rise in market value was due to
strong gains in both the equity and fixed-income component of the portfolio.
Specifically, modest price/earnings ratio expansion and strong corporate profits
caused equities in the Fund to appreciate 24.6%. The bonds in the portfolio had
one of their best 12 month periods, rising 17.2%, as interest rates receded over
1.5% from last year's highs.
For comparison purposes, over the most recent fiscal year, the S&P 500 Index
increased 26.4%, the Russell Midcap Index increased 23.3%, and the Lehman
Brothers Government/Corporate Bond Index was up 16.2%. Portfolio performance was
lead by a 48.4% gain in financial stock holdings. Outstanding performers in this
sector included Green Tree Financial Corporation, First USA, Inc., The Charles
Schwab Corporation, and MGIC Investment Corporation. Healthcare stocks in the
Fund performed admirably as fears over draconian proposals in Washington never
materialized. Large gainers included health maintenance organizations,
Foundation Health Corporation, Oxford Health Plans, and Healthsource, Inc., as
well as strong appreciation in Cordis Corporation, Columbia/HCA Healthcare
Corporation, and Surgical Care Affiliates, Inc. The only sector that had down
performance for the 12 months was transportation as a couple of our trucking
holdings experienced weak business trends.
On the fixed-income side, we met our goal of tracking and outperforming the
Fund's benchmark, the Lehman Brothers Government/Corporate Bond Index. Overall
fixed-income performance in the Fund can be attributed to added value work
in three broad areas: issue selection, sector allocation, and yield curve
positioning. Overweighted positions in the finance, banking and
brokerage sectors along with our asset-backed exposure contributed to
performance. Yield curve positioning, overweighting the four-year bond and 20-
year maturity areas, also played an important role in Fund performance.
The outlook for the new fiscal year is quite positive predicated on our belief
that inflation will increase only 1-2%, and gross domestic product will
slow to 1-2%. We think this economic backdrop will cause interest rates
to decline an additional .5% and provide the fuel for appreciation in both
fixed income and equities. Given a slowdown in corporate profits, the Balanced
Fund continues to emphasize more defensive sectors such as finance and
healthcare, while being underweighted in basic materials and energy. Based
on the strong earnings outlook of the companies in the portfolio and quite
reasonable valuations, near term we do not anticipate any major changes
in the Fund's current asset allocation of 63% equities, 34% fixed income,
and 3% money market instruments. We appreciate your continued support and
confidence in Portico Balanced Fund.
R. Bart Wear, CFA
Teresa R. Westman, CFA
Portfolio Managers
Firstar Investment Research &Management Company
PORTFOLIO MANAGER PROFILE
R. Bart Wear, CFA, Senior Vice President and Senior Portfolio Manager of Firstar
Investment Research &Management Company (FIRMCO) and Teresa R. Westman, CFA,
Senior Vice President and Senior Portfolio Manager co-manage the Fund, Teresa
since its inception on March 30, 1992, and Bart since January 20, 1994. Bart has
been with Firstar since 1983 and has 12 years of investment management
experience. He received his BSfrom Arizona State University in 1982. Teresa
has been with Firstar since 1987 and has eight years of investment
management experience. Teresa received her BAfrom Augustana College in 1985
and her MBA from the University of Chicago in 1991. Bart and Teresa are both
Chartered Financial Analysts.
3/30/92 10/92 10/93 10/94 10/95
------- ----- ----- ----- -----
PORTICO BALANCED FUND - A - NO LOAD 10,000 10,372 11,771 11,662 13,941
PORTICO BALANCED FUND - A - LOAD <F99> 9,600 9,958 11,302 11,197 13,386
LEHMAN BROS. GOV'T./CORP. BOND INDEX 10,000 10,747 12,212 11,645 13,527
RUSSELL MIDCAPTM INDEX 10,000 10,621 12,936 13,240 16,325
S&P 500 STOCK INDEX 10,000 10,548 12,124 12,593 15,923
This chart assumes an initial investment of $10,000 made on 3/30/92 (inception).
Perform ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Returns shown include the reinvestment of all
dividends and other distributions. Past perform ance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 3 Years 3/30/92
------ ------- --------
PORTICO BALANCED FUND - A - NO LOAD 19.6 10.4 9.7
PORTICO BALANCED FUND - A - LOAD <F99> 14.8 8.9 8.5
LEHMAN BROTHERS GOV'T/CORP BOND INDEX <F100> 16.2 8.0 8.8
RUSSELL MIDCAPTM INDEX <F101> 23.3 15.4 14.6
S&P 500 STOCK INDEX <F102> 26.4 14.7 13.9
<F99> Reflects maximum sales charge of 4.00%.
<F100> The Lehman Brothers Gov't./Corp. Bond Index is an unmanaged market value
weighted index measuring both principal price changes of, and income provided
by, the underlying universe of securities that comprise the index. Securities
included in the index must meet the following criteria:fixed as opposed to
variable rate; not less than one year to maturity; minimum outstanding par value
of $100 million; and rated investment grade or higher by Moody's, Standard &
Poor's, or Fitch, in that order.
<F101> The Russell MidcapTM Index is defined as the lowest 800 companies in the
Russell 1000 Index, as ranked by total market capitalization. The Russell
MidcapTM Index accurately captures the medium-sized universe of securities.
<F102> The S&P500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. The load performance for
the Series A Shares has been restated to reflect the impact of the sales charge.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
TOP 5 HOLDINGS 10/31/95
- --------------------------------------------------
COLUMBIA/HCA HEALTHCARE CORPORATION 1.6%
FIRST DATA CORPORATION 1.6%
FOUNDATION HEALTH CORPORATION 1.6%
ALCO STANDARD CORPORATION 1.5%
MBNA CORPORATION 1.3%
Portfolio holdings are subject to change and are
not a representation of the Fund's entire portfolio
holdings.
TOTAL FUND NET ASSETS 10/31/95
- ---------------------------------------------------
$126,383,582
GROWTH AND INCOME FUND
During fiscal year 1995, which was characterized by strong equity and bond
markets, Portico Growth and Income Fund's investment performance (24.8% no load)
outpaced both the Lipper Growth and Income (20.0%) and Equity Income (17.9%)
mutual fund indices (Lipper Analytical Services provides mutual fund performance
analysis). The Fund, however, trailed the return of the S&P 500 Index and the
Wilshire Top 750 Index due to its limited exposure to the technology sector
(technology was the strongest sector of the S&P 500, up 48.5%). The Growth and
Income Fund maintained an average 4% weighting in technology, one-fourth of the
S&P 500 weighting, reflecting the requirement that all securities in the
portfolio provide income.
Additional criteria used to select companies for Portico Growth and Income Fund
are:
- -growth in earnings and dividends per share greater than the average company
as measured by the S&P 500 Stock Index
- -strong balance sheets which enable growth in company operations without
shareowner dilution, as well as the opportunity for share repurchases
- -opportunity for profit margin expansion through productivity improvements
- -management incentives tied to company performance.
During the year, we have increased the Fund's exposure to companies which
benefit from a decline in interest rates, such as Norwest Corporation (banking),
Western National Corp. (insurance) and real estate investment trusts (REITs). We
also purchased and/or added to positions in companies which should demonstrate
steady growth in an environment of modest economic growth (i.e. companies which
generally are immune to the economic cycle). These companies include H&R Block,
Inc. (income tax preparation and on-line services); Service Corporation
International (funeral services); Frontier Corporation (integrated
telecommunications); and Duracell Inc. (alkaline batteries).
Given the strong appreciation in the overall market, many securities were
eliminated or cut-back during the year as they reached our price targets (i.e.
traded at price-to-earnings multiples that exceeded their long-term growth
rates). Sales included holdings such as Colgate-Palmolive Company, American
General Corporation, RR Donnelly &Sons Company, Harcourt General, Inc., Dillards
Department Stores, Inc., and Hercules, Inc.
The outlook for the next six months reflects a "tug-of-war" between lower
interest rates (low inflation and modest economic growth would dictate lower
rates) and decelerating earnings growth for the S&P 500. Key to the Fund's
performance will be investing in companies that can weather slower economic
growth with above-average increases in earnings. By consistently employing the
underlying investment philosophy of Portico Growth and Income Fund mentioned
above, we feel the Fund is well-positioned to achieve these objectives and
benefit long-term investors.
Finally, we are pleased to report that the Fund's lead research analyst, Maya
Bittar, was recently promoted to co-manage the Fund. Maya's investment
experience and her contributions have been instrumental in adding value to the
portfolio.
Marian E. Zentmyer, CFA, CFP
Maya K. Bittar, CFA
Portfolio Managers
Firstar Investment Research & Management Company
PORTFOLIO MANAGER PROFILE
Marian E. Zentmyer, CFA, CFP, Senior Vice President and Senior Portfolio Manager
of Firstar Investment Research &Management Company (FIRMCO) and Maya K. Bittar,
CFA, Vice President and Portfolio Manager co-manage the Fund, Marian since
February 22, 1993, and Maya since October 1, 1995. Marian has been with Firstar
since 1982 and has 17 years of investment manage ment experience. She received
her BAfrom Stanford University in 1978. Maya has been with Firstar since 1993
and has 3 years of investment management experience. She received her BBA in
1985 and her MBA and MS in 1991from the University of Wisconsin. Marian is a
Chartered Financial Analyst and a Certified Financial Planner. Maya is a
Chartered Financial Analyst.
<TABLE>
<CAPTION>
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95
-------- ----- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
PORTICO GROWTH AND INCOME FUND - A - NO LOAD 10,000 9,304 11,688 12,368 13,596 13,846 17,273
PORTICO GROWTH AND INCOME FUND - A - LOAD <F103> 9,600 8,933 11,223 11,875 13,054 13,294 16,585
WILSHIRE TOP 750 INDEX 10,000 8,722 11,859 13,063 15,055 15,534 19,725
S&P500 STOCK INDEX 10,000 8,855 11,821 12,999 14,941 15,519 19,622
LIPPER GROWTH & INCOMEINDEX 10,000 8,810 11,480 12,623 15,135 15,462 18,232
LIPPER EQUITY INCOME INDEX 10,000 8,612 11,499 12,523 14,964 15,437 18,518
<FN>
This chart assumes an initial investment of $10,000 made on 12/29/89 (inception). Performance reflects fee waivers in effect. In
the absence of fee waivers, total return would be reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original cost.
</TABLE>
<TABLE>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
<CAPTION>
Since Inception
1 Year 3 Years 5 Years 12/29/89
------ ------- ------- --------
<S> <C> <C> <C> <C>
PORTICO GROWTH AND INCOME FUND - A - NO LOAD 24.8 11.8 13.2 9.8
PORTICO GROWTH AND INCOME FUND - A - LOAD <F103> 19.8 10.3 12.3 9.0
WILSHIRE TOP 750 INDEX <F104> 27.0 14.7 17.7 12.4
S&P 500 STOCK INDEX <F105> 26.4 14.7 17.3 12.3
LIPPER GROWTH &INCOME INDEX <F106> 20.0 13.9 16.6 11.13
LIPPER EQUITY INCOME INDEX <F106> 17.9 13.0 15.7 10.83
<FN>
<F103> Reflects maximum sales charge of 4.00%.
<F104> The Wilshire Top 750 Index, an unmanaged index, consists of the largest 750
companies in the Wilshire 5000 Stock Index and extends down to approximately the
$1 billion market capitalization level.
<F105> The S&P500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approx i mately
two-thirds of the total market value of all domestic common stocks.
<F106> The Lipper Growth &Income and Equity Income Indices are equally weighted
indices of the 30 largest mutual funds within their respective investment
objective categories, adjusted for the reinvestment of capital gains
distributions and income dividends.
An investment cannot be made directly in an index.
</TABLE>
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maxi mum sales load and are
subject to an annual 0.25% service organiza tion fee. The load performance for
Series A shares has been restated to reflect the impact of the sales charge.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. If service organization fees had been reflected, perform ance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
TOP 5 HOLDINGS 10/31/95
- --------------------------------------------------
ALCO STANDARD CORPORATION 3.7%
PFIZER, INC. 2.7%
H&R BLOCK, INC. 2.6%
TYCO INTERNATIONAL, LTD. 2.5%
DIEBOLD, INC. 2.5%
Portfolio holdings are subject to change and are
not a representation of the Fund's entire portfolio
holdings.
TOTAL FUND NET ASSETS 10/31/95
- ---------------------------------------------------
$205,175,904
Equaity Index Fund
Portico Equity Index Fund seeks to provide investment returns, before Fund
expenses, comparable to the price and yield performance of publicly traded
stocks in the aggregate, as represented by the S&P 500 Index. The Fund does not
use traditional methods of financial and market analysis when making purchase
and sale decisions; rather, the Fund invests primarily in common stocks that
comprise the S&P 500 Stock Index in proportion with their relative
capitalization and sector weightings.
Portico Equity Index Fund's net asset value of $41.07 on October 31, 1995
represents a return of 25.8% (no load) for the twelve months then ended, as
compared to the S&P 500's return of 26.4% over the same period.
As we have stated in previous reports, we believe that by applying a
capitalization weighting and sector balancing technique, we will maintain the
Fund's investment portfolio so it reasonably tracks the performance of the S&P
500 Stock Index.
Daniel A. Tranchita, CFA
Portfolio Manager
Firstar Investment Research &Management Company
PORTFOLIO MANAGER PROFILE
Daniel A. Tranchita, CFA, Vice President and Portfolio Manager of Firstar
Investment Research &Management Company (FIRMCO) has managed the Fund since July
1, 1992. Dan has been with Firstar since 1989 and has 6 years of investment
management experience. He received his BAin 1987 and his MBA in 1989 from
Marquette University. Dan is a Chartered Financial Analyst.
<TABLE>
<CAPTION>
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95
-------- ----- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
PORTICO EQUITY INDEX FUND - A - NO LOAD 10,000 8.854 11,767 12,869 14,644 15,157 19,066
PORTICO EQUITY INDEX FUND - A - LOAD <F107> 9,600 8,501 11,297 12,355 14,059 14,552 18,305
S&P 500 STOCK INDEX 10,000 8,855 11,821 12,999 14,941 15,510 19,622
<FN>
This chart assumes an initial investment of $10,000 made on 12/29/89 (inception). Performance reflects fee waivers in effect. In the
absence of fee waivers, total return would be reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original cost.
</TABLE>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 3 Years 5 Years 12/29/89
------ ------- ------- --------
PORTICO EQUITY INDEX FUND - NO LOAD 25.8 14.0 16.6 11.7
PORTICO EQUITY INDEX FUND -
LOAD <F107> 20.8 12.5 15.6 10.9
S&P 500 STOCK INDEX <F108> 26.4 14.7 17.3 12.3
<F107> Reflects maximum sales charge of 4.00%.
<F108> The S&P500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund will no longer be applied to either the Series A or
Series Institutional shares. The load performance for Series A shares has been
restated to reflect the impact of the sales charge (and the elimination of the
purchase price adjustment). The no-load performance for the Series A shares has
been restated to reflect the elimination of the purchase price adjustment.
Series A performance prior to January 10, 1995 does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
TOP 5 HOLDINGS 10/31/95
- -------------------------------------------------------
GENERAL ELECTRIC COMPANY 2.4%
AT&TCORPORATION 2.2%
EXXON CORPORATION 2.1%
COCA-COLA COMPANY 2.0%
PHILIP MORRIS COMPANIES, INC. 1.6%
Portfolio holdings are subject to change and are not a
representation of the Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/95
- -------------------------------------------------------
$156,769,229
Midcore Growth Fund
Market conditions for growth stocks over the fiscal year ended October 31, 1995
have been quite favorable. Specifically, a decline in interest rates caused
price/earnings ratio expansion, corporate profits increased more than 20% (among
the highest on record in 40 years according to Sanford Bernstein Research), and
cash flow from individuals into equity mutual funds was extremely positive.
In line with this, Portico MidCore Growth Fund's performance for the fiscal year
ended October 31, 1995, while lagging that of the Wilshire Top 750 and the S&P
500, was still attractive at 19.3% no load (vs. 27.0% and 26.4%, respectively).
The reason the Fund underperformed the indices was largely due to its technology
weighting - which returned 19.5% vs. the S&P 500's 48.5%. In addition, MidCore
Growth Fund's near double weighting in consumer cyclicals (which gained only
14.4%) held back returns.
Over the past twelve months, the Fund increased its capital goods weighting from
7.6% to 10.6%, modestly reduced its weighting in consumer cyclicals and finance,
and increased its exposure to the healthcare industry. Stocks in the portfolio
which performed well during this time period included Microsoft Corporation,
Staples, Inc., MBNA Corporation and Nike, Inc. Companies in the Fund which are
positioned to take advantage of a slower economic environment include CUC
International, Inc., Thermo Electron Corporation, Alco Standard Corporation and
Columbia/HCA Healthcare Corporation. These companies should be able to grow in
this type of environment because they have the financial flexibility which
allows them to make additional acquisitions.
We believe global competitive pricing pressure exists in almost all industries.
In addition, given productivity gains in corporate America over the past year,
we believe operating margins for most companies are at their highest level in a
couple of decades, making profits vulnerable if revenues decelerate. These two
factors have caused us to focus on revenue growth, rather than margin expansion,
for future earnings growth and to focus on companies with dominant market share
and low cost positions. This allows them to more successfully gain market share
at the expense of marginal competitors.
Of Portico MidCore Growth Fund's current top 15 holdings, only one has been in
the best performing sector: technology. We interpret this to mean the portfolio
has a number of securities which have future appreciation potential in front of
them rather than the risk associated with holdings that have done extremely well
and are ultimately vulnerable to slow earnings comparisons or P/E compression.
As a result, we are particularly optimistic about the outlook for Portico
MidCore Growth Fund in 1996.
R. Bart Wear, CFA
Portfolio Manager
Firstar Investment Research &Management Company
PORTFOLIO MANAGER PROFILE
R. Bart Wear, CFA, Senior Vice President and Senior Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) has managed the Fund since its
inception on December 29, 1992. Bart has been with Firstar since 1983 and has 12
years of investment management experience. He received his BS from Arizona State
University in 1982. Bart is a Chartered Financial Analyst.
12/19/92 10/93 10/94 10/95
-------- ------ ------ ------
PORTICO MIDCOREGROWTH FUND - A - NO LOAD 10,000 10,753 10,813 12,901
PORTICO MIDCOREGROWTH FUND - A - LOAD <F109> 9,600 10,324 10,382 12,387
WILSHIRE TOP 750 INDEX 10,000 10,951 11,299 14,348
S&P 500 STOCK INDEX 10,000 10,981 11,406 14,422
This chart assumes an initial investment of $10,000 made on 12/29/92
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 12/29/92
------ --------------
PORTICO MIDCORE GROWTH FUND - A - NO LOAD 19.3 9.4
PORTICO MIDCORE GROWTH FUND - A - LOAD <F109> 14.6 7.8
WILSHIRE TOP 750 INDEX <F110> 27.0 13.6
S&P 500 STOCK INDEX <F111> 26.4 13.8
<F109> Reflects maximum sales charge of 4.00%.
<F110> The Wilshire Top 750 Index, an unmanaged index, consists of the largest
750 companies in the Wilshire 5000 Stock Index and extends down to approximately
the $1 billion market capitalization level.
<F111> The S&P500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maxi mum sales load and are
subject to an annual 0.25% service organiza tion fee. The load performance for
the Series A shares has been restated to reflect the impact of the sales charge.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. If service organization fees had been reflected, perform ance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
TOP 5 HOLDINGS 10/31/95
- ---------------------------------------------------------
FIRST DATA CORPORATION 4.0%
ALCO STANDARD CORPORATION 3.9%
COLUMBIA/HCA HEALTHCARE CORPORATION 3.9%
FOUNDATION HEALTH CORPORATION 3.5%
MBNA CORPORATION 3.4%
Portfolio holdings are subject to change and are not
a representation of the Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/95
- ---------------------------------------------------------
$144,532,801
Special Growth Fund
The economy over the past fiscal year has slowed, allowing for the valuation of
persistent earnings growth companies to increase relative to cyclical companies.
Portico Special Growth Fund's 25.6% (no load) return outpaced the Wilshire
MidCap 750 benchmark's return of 21.7%. This outperformance was largely aided by
strong 4th quarter results in the HMO sector in which the Fund was overweighted.
In maintaining our investment criteria for the Fund, we continued to add
companies to the portfolio which exhibited the following characteristics:
-long-term, above-average earnings growth
-low debt/capitalization
-high return on equity
-management ownership
New additions to the Fund which fit these criteria included Oxford Health Plans,
The Charles Schwab Corporation, Kohl's Corporation, Mirage Resorts, Inc. and
U.S. Robotics Corporation. (In particular, Kohl's Corporation is a good model
for our buy decision - a retailer that provides exceptional value to consumers
and has a proven growth strategy which should benefit the Fund in an economic
slowdown.) Holdings which were reduced due to high valuations during the fiscal
year included Green Tree Financial Corporation, Advanta Corporation Class B,
Xilinx, Inc., and Parametric Technology Company.
Our outlook for Portico Special Growth Fund remains favorable for the next six
months as we feel the Fund is well positioned to take advantage of an economic
slowdown. We continue to manage the Fund with the same criteria and have the
advantage of additional research staff. Looking ahead, as this economic slowdown
becomes more evident, the patience of sticking with our persistent quality
earnings growth companies will provide an excellent opportunity to reward the
Fund. And as always, we seek to concentrate on those companies that meet or
exceed our growth projections.
J. Scott Harkness, CFA
Joseph J. Docter, CFA
Mark D. Westman, CFA
Todd M. Krieg
Portfolio Managers
Firstar Investment Research &Management Company
PORTFOLIO MANAGER PROFILE
J. Scott Harkness, CFA, Chief Investment Officer of Firstar Investment Research
&Management Company (FIRMCO), Joseph J. Docter, CFA, Senior Vice President and
Senior Portfolio Manager, Mark D. Westman, CFA, CPA, Vice President and
Portfolio Manager, and Todd M. Krieg, Vice President and Portfolio Manager
manage the Fund - Scott and Joe since its inception on December 28, 1989, Mark
since January 1994 and Todd since September 1994. Scott has been with Firstar
for 16 years and has more than 17 years of investment management experience. He
received his BAfrom the University of Wisconsin in 1977. Joe has been with
Firstar since 1984 and has 11 years of investment management experience. He
received his BBAand his MBA from the University of Wisconsin in 1981 and 1984,
respectively. Mark has been with Firstar for three years and received his BA
from Augustana College in 1985 and his MBA from the University of Chicago in
1993. Todd has been with Firstar for three years and received his BA from
Williams College in 1983 and a JD from Georgetown University in 1989. Scott, Joe
and Mark are all Chartered Financial Analysts.
<TABLE>
<CAPTION>
12/28/89 10/90 10/91 10/92 10/93 10/94 10/95
-------- ------ ------ ------ ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
PORTICO SPECIAL GROWTH FUND - A - NO LOAD 10,000 8,953 14,346 15,617 18,138 18,641 23,406
PORTICO SPECIAL GROWTH FUND - A - LOAD <F112> 9,600 8,596 13,774 14,994 17,416 17,898 22,474
WILSHIRE MIDCAP 750 INDEX 10,000 7,606 11,627 12,910 16,167 16,680 20,303
S&P 500 STOCK INDEX 10,000 8,855 11,821 12,999 14,941 15,519 19,622
<FN>
This chart assumes an initial investment of $10,000 made on 12/28/89 (inception). Perform ance reflects fee waivers in effect. In
the absence of fee waivers, total return would be reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original cost.
</TABLE>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 3 Years 5 Years 12/28/89
----- ------ ------- -------
PORTICO SPECIAL GROWTH FUND- A-NO LOAD 25.6 14.4 21.2 15.7
PORTICO SPECIAL GROWTH FUND- A-LOAD <F112> 20.6 12.9 20.2 14.9
WILSHIRE MIDCAP 750 INDEX <F113> 21.7 16.3 21.7 12.9
S&P 500 STOCK INDEX <F114> 26.4 14.7 17.3 12.3
<F112> Reflects maximum sales charge of 4.00%.
<F113> The Wilshire MidCap 750 Index, an unmanaged index, is an overlay of large
and small company universes and consists of companies 501 to 1250 of the
Wilshire 5000 Stock Index. Market capitalization range of MidCap 750 is from
$450 million to $1.7 billion.
<F114> The S&P500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approx i mately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maxi mum sales load and are
subject to an annual 0.25% service organiza tion fee. The load performance for
the Series A shares has been restated to reflect the impact of the sales charge.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. If service organization fees had been reflected, perform ance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail shares)
TOP 5 HOLDINGS 10/31/95
- -------------------------------------------------------
OXFORD HEALTH PLANS 2.8%
THE CHARLES SCHWAB CORPORATION 2.4%
LOEWEN GROUP, INC. 2.4%
HEALTHSOURCE, INC. 2.4%
PACIFICARE HEALTH SYSTEMS 2.3%
Portfolio holdings are subject to change and are not
a representation of the Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/95
- --------------------------------------------------------
$521,496,734
INTERNATIONAL EQUITY FUND
Portico International Equity Fund seeks capital appreciation through investment
in foreign equity securities of small-to-medium sized companies. The Fund uses a
different approach to investing relative to our actively managed Portico equity
funds. The Fund is comprised of a representative portion of the small-to-medium
sized companies found in the Morgan Stanley Capital International Europe,
Australia and Far East (EAFE) Index. Instead of focusing on the entire index,
the Fund invests in companies with a market capitalization range of $250 million
to $5 billion. We believe this slice of the EAFE Index will allow the Fund to
concentrate on those stocks with the highest growth potential.
The country allocation is weighted by the Gross Domestic Product (GDP) of each
foreign country. This allows the Fund to reduce the overall exposure to Japan
while increasing exposure to other countries such as Germany and France. As of
October 31, 1995, the International Equity Fund owned 776 companies located
throughout Europe and the Pacific Basin. State Street Global Advisors, with over
16 years of international investing experience and $26 billion of international
assets under management, is the sub-advisor and handles the trading for the
Fund. As a result, the Fund can take advantage of reduced trading and
transaction costs.
The structured selection process using GDP weightings and small-to medium-sized
market capitalization ranges will not necessarily produce comparable performance
to the EAFE Index, as has been the case since the Fund began operations on April
28, 1994. Nevertheless, we believe that long-term performance of small- to
medium-sized international firms will provide higher total returns than
investments in large international firms of the EAFE Index.
Investing internationally continues to be an effective strategy to diversify
your portfolio while offering the potential for attractive returns over the long
term.
Daniel A. Tranchita, CFA
Portfolio Manager
Firstar Investment Research &Management Company
PORTFOLIO MANAGER PROFILE
DANIEL A. TRANCHITA, CFA, Vice President and Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) has managed the Fund since its
inception on April 28, 1994. Dan has been with Firstar since 1989 and has 6
years of investment management experience. He received his BAin 1987 and his MBA
in 1989 from Marquette University. Dan is a Chartered Financial Analyst.
4/28/94 10/94 10/95
------- ------ ------
PORTICO INTERNATIONAL EQUITY FUND - A - NO LOAD 10,000 9.995 9,600
PORTICO INTERNATIONAL EQUITY FUND - A - LOAD <F115> 9,600 9,597 9,218
MORGAN STANLEY GDP-WEIGHTED EAFE INDEX 10,000 10,429 10,390
MORGAN STANLEY EAFEINDEX 10,000 10,103 10,154
This chart assumes an initial investment of $10,000 made on 4/28/94 (inception).
Perform ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Returns shown include the reinvestment of all
dividends and other distributions. Past perform ance is not predictive of future
performance. Investment return and principal value will fluc tuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 1995
Since Inception
1 Year 4/28/94
------ --------
PORTICO INTERNATIONAL EQUITY FUND - NO LOAD -4.0 -2.7
PORTICO INTERNATIONAL EQUITY FUND - LOAD <F115> -7.8 -5.2
GDPEAFE INDEX <F116> 0.5 1.0
EAFEINDEX <F117> -0.4 2.6
<F115> Reflects maximum sales charge of 4.00%.
<F116> The gross domestic product-weighted Morgan Stanley Capital International
Europe, Australia and Far East Index, ("MSCI GDP EAFE") is an unmanaged index
composed of a sample of companies representative of the market structure of 20
European and Pacific Basin countries. The GDP EAFE Index seeks to replicate
industry composition of each local market, and a representative sampling of
large, medium and small capitalization companies from each local market.
<F117> The MSCI/EAFEIndex is the most recognized international index and is
weighted by market capitalization.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund will no longer be applied to either the Series A or
Series Institutional shares. The load performance for Series A shares has been
restated to reflect the impact of the sales charge (and the elimination of the
purchase price adjustment). The no-load performance for the Series A shares has
been restated to reflect the elimination of the purchase price adjustment.
Series A performance prior to January 10, 1995 does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A -= Series A (retail class)
TOP 5 COUNTRIES 10/31/95
- -------------------------------------------------------
JAPAN 34.0%
GERMANY 15.5%
FRANCE 10.5%
GREAT BRITAIN 7.9%
ITALY 7.7%
Portfolio holdings are subject to change and are not a
representation of the Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/95
- -------------------------------------------------------
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
OCTOBER 31, 1995
<CAPTION>
GROWTH AND EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
-------- ---------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost
$104,294, $168,068,
$110,846, $109,839,
$393,397 and $34,597,
respectively) $125,237 $207,586 $156,546 $144,662 $510,669 $ 32,752
Foreign currency (cost $156) - - - - - 159
Income receivable 673 293 255 66 246 66
Capital shares sold 9 172 84 12 91 12
Receivable for securities sold 823 - - 514 10,986 125
Receivable for foreign
currency purchased - - - - - 140
Other assets 16 4 8 10 4 67
------ ------ ------- ------- ------- -------
Total Assets 126,758 208,055 156,893 145,264 521,996 33,321
------- ------- ------- ------- ------- ------
LIABILITIES:
Payable for securities
purchased 277 2,697 - 608 71 266
Payable for foreign
currency purchased - - - - - 140
Payable to affiliates 80 161 57 100 392 58
Accrued expenses and
other liabilities 17 21 67 23 36 37
----- ----- ----- ----- ----- -----
Total Liabilities 374 2,879 124 731 499 501
--- ----- --- --- --- ---
NET ASSETS $126,384 $205,176 $156,769 $144,533 $521,497 $ 32,820
======= ======= ======= ======= ======= =======
NET ASSETS CONSIST OF:
Capital stock $102,869 $156,704 $109,821 $114,781 $347,916 $ 33,840
Undistributed net
investment income (loss) 226 175 245 (1) - 156
Undistributed accumulated
net realized
gains (losses) on:
Investments 2,346 8,779 972 (5,070) 56,309 666
Unrealized net appreciation
(depreciation) on:
Investments 20,943 39,518 45,700 34,823 117,272 (1,845)
Futures contracts - - 31 - - -
Foreign currency - - - - - 3
------ ------ ------- ------- ------- -------
Total Net Assets $126,384 $205,176 $156,769 $144,533 $521,497 $ 32,820
======= ======= ======= ======= ======= =======
SERIES A:
Net assets $ 21,832 $ 42,424 $ 18,663 $ 10,105 $ 87,269 $ 1,633
Shares authorized
($.0001 par value) 500,000 500,000 500,000 500,000 500,000 500,000
Shares issued and
outstanding 843 1,536 454 395 2,108 85
Net asset value and
redemption price
per share<F118> $25.89 $27.62 $41.07 $25.58 $41.40 $19.15
======= ======= ======= ======= ======= =======
Maximum offering
price per share<F118> $26.97 $28.77 $42.78 $26.65 $43.13 $19.95
======= ======= ======= ======= ======= =======
SERIES INSTITUTIONAL:
Net assets $104,552 $162,752 $138,106 $134,428 $434,228 $ 31,187
Shares authorized
($.0001 par value) 500,000 500,000 500,000 500,000 500,000 500,000
Shares issued and
outstanding 4,036 5,891 3,362 5,250 10,470 1,625
Net asset value,
redemption price and
offering price
per share<F118> $25.90 $27.63 $41.08 $25.61 $41.47 $19.19
======= ======= ======= ======= ======= =======
<FN>
<F118>Amounts may not recalculate due to rounding.
See notes to the financial statements.
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS, PART 1
(AMOUNTS IN THOUSANDS)
BALANCED FUND GROWTH AND INCOME FUND
--------------- ----------------
YEAR ENDED OCT. 31, YEAR ENDED OCT. 31,
------------------- ------------------
1995 1994 1995 1994
---- ---- ---- ----
OPERATIONS:
Net investment income (loss) $ 2,444 $ 1,817 $ 2,975 $ 3,075
Net realized gain (loss) on:
Investments 3,757 (1,339) 8,861 4,230
Foreign currency - - - -
Change in unrealized
appreciation (depreciation) on:
Investments 14,596 (1,391) 28,643 (4,285)
Foreign currency - - - -
------ ------ ------ ------
Net increase (decrease) in
net assets resulting from
operations 20,797 (913) 40,479 3,020
------ ----- ------ -----
CAPITAL SHARE TRANSACTIONS:
Shares sold 51,996 28,851 39,149 34,645
Shares issued to owners in
reinvestment of dividends 2,325 1,738 6,778 6,597
----- ----- ----- -----
54,321 30,589 45,927 41,242
Shares redeemed (41,011) (15,322) (38,029) (33,938)
-------- -------- -------- --------
Net increase 13,310 15,267 7,898 7,304
------ ------ ----- -----
DISTRIBUTIONS TO SHAREOWNERS<F119>:
From net investment income (540) (1,796) (925) (2,975)
From net realized gains - - (4,244) (4,000)
----- ------ ------- -------
(540) (1,796) (5,169) (6,975)
----- ------- ------- -------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS<F119>:
From net investment income (285) - (374) -
----- ------ ----- ------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS<F119>:
From net investment income (1,555) - (1,711) -
From net realized gains - - - -
------ ------- ------- -------
(1,555) - (1,711) -
------- ------- ------- -------
TOTAL INCREASE IN NET ASSETS 31,727 12,558 41,123 3,349
NET ASSETS:
Beginning of period 94,657 82,099 164,053 160,704
------ ------ ------- -------
End of period (including
undistributed net
investment income
(loss) of $226, $146,
$175, $165, $245,
$149, $(1), $50, $0,
$0, $156 and
$43, respectively) $126,384 $94,657 $205,176 $164,053
======= ======= ======= =======
STATEMENT OF CHANGES IN NET ASSETS, PART 2
(AMOUNTS IN THOUSANDS)
EQUITY INDEX FUND MIDCORE GROWTH FUND
------------------- ---------------
YEAR ENDED OCT. 31, YEAR ENDED OCT. 31,
------------------- ------------
1995 1994 1995 1994
---- ---- ---- ----
OPERATIONS:
Net investment income (loss) $ 2,949 $ 2,017 $ 145 $ 305
Net realized gain (loss) on:
Investments 1,377 338 2,657 (4,766)
Foreign currency - - - -
Change in unrealized appreciation
(depreciation) on:
Investments 26,047 1,004 20,823 4,961
Foreign currency - - - -
------ ------ ------ ------
Net increase (decrease) in
net assets
resulting from operations 30,373 3,359 23,625 500
------ ----- ------ ---
CAPITAL SHARE TRANSACTIONS:
Shares sold 43,586 44,189 49,755 45,282
Shares issued to owners in
reinvestment of dividends 2,893 1,769 222 214
----- ----- --- ---
46,479 45,958 49,977 45,496
Shares redeemed (24,547) (23,637) (42,006) (17,031)
-------- -------- -------- --------
Net increase 21,932 22,321 7,971 28,465
------ ------ ----- ------
DISTRIBUTIONS TO SHAREOWNERS<F119>:
From net investment income (731) (1,937) (137) (235)
From net realized gains (201) - - -
----- ------- ----- -----
(932) (1,937) (137) (235)
----- ------- ----- -----
DISTRIBUTIONS TO SERIES A
SHAREOWNERS<F119>:
From net investment income (226) - (1) -
----- ------ ----- ------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS<F119>:
From net investment income (1,941) - (122) -
From net realized gains - - - -
------ ------ ------ -------
(1,941) - (122) -
------- ------ ----- ------
TOTAL INCREASE IN NET ASSETS 49,206 23,743 31,336 28,730
NET ASSETS:
Beginning of period 107,563 83,820 113,197 84,467
------- ------ ------- ------
End of period (including
undistributed net
investment income
(loss) of $226, $146,
$175, $165, $245,
$149, $(1), $50, $0, $0,
$156 and $43, respectively) $156,769 $107,563 $144,533 $113,197
======= ======= ======= =======
STATEMENT OF CHANGES IN NET ASSETS, PART 3
(AMOUNTS IN THOUSANDS)
INTERNATIONAL
SPECIAL GROWTH FUND EQUITY FUND
-------------------- -------------
APRIL 28,
YEAR ENDED 1994
OCT. 31, YEAR ENDED THROUGH
----------------- OCT. 31, OCT. 31,
1995 1994 1995 1994
---- ---- ---- ----
OPERATIONS:
Net investment income (loss) $ (148) $ 476 $ 165 $ 43
Net realized gain (loss) on:
Investments 57,101 6,275 463 8
Foreign currency - - 225 (28)
Change in unrealized
appreciation (depreciation) on:
Investments 49,078 4,233 (1,826) (19)
Foreign currency - - 1 2
------ ------ ------ ------
Net increase (decrease) in
net assets
resulting from operations 106,031 10,984 (972) 6
------ ------ ------ ------
CAPITAL SHARE TRANSACTIONS:
Shares sold 130,385 209,100 12,055 24,430
Shares issued to owners in
reinvestment of dividends 2,330 436 59 -
------ ------ ------ ------
132,715 209,536 12,114 24,430
Shares redeemed (110,262) (171,571) (2,015) (680)
--------- --------- ------- -----
Net increase 22,453 37,965 10,099 23,750
------ ------ ------ ------
DISTRIBUTIONS TO SHAREOWNERS<F119>:
From net investment income - (495) (55) -
From net realized gains (2,526) - (8) -
------ ------ ------ ------
(2,526) (495) (63) -
------ ------ ------ ------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS<F119>:
From net investment income - - - -
------ ------ ------ ------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS<F119>:
From net investment income - - - -
From net realized gains (45) - - -
------ ------ ------ ------
(45) - - -
------ ------ ------ ------
TOTAL INCREASE IN NET ASSETS 125,913 48,454 9,064 23,756
NET ASSETS:
Beginning of period 395,584 347,130 23,756 -
------- ------ ------ ------
End of period (including
undistributed
net investment income
(loss) of $226, $146,
$175, $165, $245,
$149, $(1), $50, $0, $0,
$156 and $43, respectively) $521,497 $395,584 $32,820 $23,756
======= ======= ======= =======
<F119>On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995, Institutional
shareowners exchanged their Series A shares for the Funds' Institutional series
shares. Distributions to shareowners from net investment income and net realized
gains reflect activity for the Funds for the period November 1, 1994 through
January 9, 1995 and for each Fund's respective class of shares for the period
from January 10, 1995 through October 31, 1995.
See notes to the financial statements.
FINANCIAL HIGHLIGHTS, PART 1
BALANCED FUND
------------------------------------------------------
Year
ended March 30,
October 31, Year ended 1992<F120>
1995<F123> October 31,
through
Series Series ----------------- Oct. 31,
A Institutional 1994 1993 1992
------ ------------- ---- ---- ----
Per Share Data:
Net asset value,
beginning of period $22.10 $22.10 $22.76 $20.49 $20.00
Income from investment
operations:
Net investment income 0.49 0.53 0.44 0.47 0.28
Net realized and
unrealized gains
(losses) on securities 3.77 3.78 (0.66) 2.27 0.44
---- ---- ------ ---- ----
Total from investment
operations 4.26 4.31 (0.22) 2.74 0.72
---- ---- ------ ---- ----
Less distributions:
Dividends from net
investment income (0.47) (0.51) (0.44) (0.47) (0.23)
Distributions from
capital gains - - - - -
------ ------ ------ ------ ------
Total distributions (0.47) (0.51) (0.44) (0.47) (0.23)
------ ------ ------ ------ ------
Net asset value,
end of period $25.89 $25.90 $22.10 $22.76 $20.49
====== ====== ====== ====== ======
Total return<F124><F125>19.55% 19.79% (0.93)% 13.49% 3.72%
Supplemental data and
ratios:
Net assets, in
thousands,
end of period $21,832 $104,552 $94,657 $82,099 $45,653
Ratio of net expenses
to average net
assets<F126> 0.94% 0.75% 0.75% 0.75% 0.75%
Ratio of net
investment income
to average net
assets<F126> 2.05% 2.24% 2.03% 2.24% 2.48%
Portfolio turnover
rate<F127> 61.87% 61.87% 59.77% 71.60% 29.04%
FINANCIAL HIGHLIGHTS, PART 2
GROWTH AND INCOME FUND
-----------------------------------------------------------
Year ended
October 31, Dec. 29,
1995<F123> 1989<F120>
------------------- Year ended October 31, through
Series Series ------------------------- Oct. 31,
A Institutional 1994 1993<F121> 1992 1991 1990
- ------------- ---- ---- ---- ---- ----
Per Share Data:
Net asset value,
beginning of
period $23.09 $23.09 $23.70 $22.27 $21.72 $17.99 $20.00
Income from
investment
operations:
Net investment
income 0.37 0.42 0.43 0.56 0.69 0.79 0.69
Net realized and
unrealized
gains (losses) on
securities 5.14 5.14 (0.03) 1.63 0.56 3.75 (2.05)
---- ---- ------ ---- ---- ---- ------
Total from
investment
operations 5.51 5.56 0.40 2.19 1.25 4.54 (1.36)
---- ---- ---- ---- ---- ---- ------
Less distributions:
Dividends from net
investment income (0.38) (0.42) (0.42) (0.57) (0.70) (0.81) (0.65)
Distributions from
capital gains (0.60) (0.60) (0.59) (0.19) - - -
------ ------ ------ ------ ----- ----- -----
Total distributions (0.98) (1.02) (1.01) (0.76) (0.70) (0.81) (0.65)
------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $27.62 $27.63 $23.09 $23.70 $22.27 $21.72 $17.99
====== ===== ===== ===== ===== ===== =====
Total return<F124>
<F125> 24.75% 25.00% 1.84% 9.93% 5.82% 25.63% (6.96)%
Supplemental data
and ratios:
Net assets, in
thousands,
end of period $42,424 $162,752 $164,053 $160,704 $135,713$103,414 $65,741
Ratio of net
expenses
to average
net assets<F126> 1.09% 0.90% 0.90% 0.88% 0.75% 0.75% 0.74%
Ratio of net
investment income
to average net
assets<F126> 1.51% 1.70% 1.89% 2.44% 3.16% 3.93% 4.39%
Portfolio turnover
rate<F127> 47.85% 47.85% 56.85% 86.24% 31.25% 28.05% 49.85%
FINANCIAL HIGHLIGHTS, PART 3
EQUITY FUND INDEX
-----------------------------------------------------------
Year ended
October 31, Dec. 29,
1995<F123> 1989<F120>
----------------- Year ended October 31, through
Series Series ------------------------------ Oct. 31,
A Institutional 1994 1993 1992<F122> 1991 1990
- ------------- ---- ---- ---- ---- ----
Per Share Data:
Net asset value,
beginning of
period $33.41 $33.41 $33.04 $29.72 $27.87 $21.63 $25.00
Income from
investment
operations:
Net investment
income 0.70 0.76 0.77 0.75 0.73 0.73 0.59
Net realized and
unrealized
gains (losses)
on securities 7.70 7.71 0.35 3.32 1.86 6.31 (3.41)
---- ---- ---- ---- ---- ---- ------
Total from
investment
operations 8.40 8.47 1.12 4.07 2.59 7.04 (2.82)
---- ---- ---- ---- ---- ---- ------
Less distributions:
Dividends from
net investment
income (0.68) (0.74) (0.75) (0.75) (0.73) (0.74) (0.55)
Distributions from
capital gains (0.06) (0.06) - - (0.01) (0.06) -
------ ------ ----- ----- ------ ------ -----
Total distributions (0.74) (0.80) (0.75) (0.75) (0.74) (0.80) (0.55)
------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $41.07 $41.08 $33.41 $33.04 $29.72 $27.87 $21.63
====== ====== ====== ====== ====== ===== =====
Total return<F124><F125>25.79%26.02% 3.51% 13.79% 9.36% 32.90%(11.46)%
Supplemental data
and ratios:
Net assets, in
thousands, end
of period $18,663 $138,106 $107,563 $83,820 $81,070 $51,481 $35,569
Ratio of net
expenses
to average
net assets<F126> 0.66% 0.46% 0.50% 0.50% 0.50% 0.50% 0.49%
Ratio of net
investment income
to average net
assets<F126> 2.14% 2.34% 2.38% 2.32% 2.48% 2.82% 3.01%
Portfolio turnover
rate<F127> 4.61% 4.61% 13.28% 13.78% 5.50% 1.38% 9.09%
FINANCIAL HIGHLIGHTS, PART 4
MIDCORE GROWTH FUND
---------------------------------------------------
Dec. 29,
October 31, 1995<F123> Year 1992<F120>
----------------------- ended through
Series Series Oct. 31, Oct. 31,
A Institutional 1994 1993
----- ------------- ---- ----
Per Share Data:
Net asset value,
beginning of period $21.47 $21.47 $21.40 $20.09
Income from investment
operations:
Net investment income (0.02) 0.03 0.06 0.09
Net realized and
unrealized
gains (losses)
on securities 4.16 4.16 0.06 1.32
---- ---- ---- ----
Total from investment
operations 4.14 4.19 0.12 1.41
---- ---- ---- ----
Less distributions:
Dividends from net
investment income (0.03) (0.05) (0.05) (0.10)
Distributions from
capital gains - - - -
- - - -
Total distributions (0.03) (0.05) (0.05) (0.10)
------ ------ ------ ------
Net asset value, end
of period $25.58 $25.61 $21.47 $21.40
====== ====== ====== ======
Total return<F124><F125> 19.31% 19.55% 0.56% 7.53%
Supplemental data
and ratios:
Net assets, in
thousands, end
of period $10,105 $134,428 $113,197 $84,467
Ratio of net expenses
to average net
assets<F126> 1.09% 0.90% 0.88% 0.89%
Ratio of net investment
income
to average
net assets<F126> (0.06)% 0.13% 0.30% 0.57%
Portfolio turnover
rate<F127> 49.84% 49.84% 33.24% 46.29%
FINANCIAL HIGHLIGHTS, PART 5
SPECIAL GROWTH FUND
---------------------------------------------------------
Year ended Dec. 28,
October 31, 1995<F123> 1989<F120>
------------------ Year ended October 31, through
Series Series ---------------------------- Oct. 31,
A Institutional 1994 19931992<F122> 1991 1990
- ------------- ---- -------- ---- ----
Per Share Data:
Net asset value,
beginning of
period $33.19 $33.19 $32.34 $28.50 $28.05 $17.72 $20.00
Income from
investment operations:
Net investment
income (0.07) 0.00 0.04 0.07 0.17 0.27 0.22
Net realized
and unrealized
gains (losses)
on securities 8.49 8.49 0.85 4.47 2.18 10.34 (2.30)
---- ---- ---- ---- ---- ----- ------
Total from
investment
operations 8.42 8.49 0.89 4.54 2.35 10.61 (2.08)
---- ---- ---- ---- ---- ----- ------
Less distributions:
Dividends from
net investment
income - - (0.04) (0.08) (0.18) (0.28) (0.20)
Distributions
from capital
gains (0.21) (0.21) - (0.62) (1.72) - -
------ ------ ----- ------ ------ ----- -----
Total
distributions (0.21) (0.21) (0.04) (0.70) (1.90) (0.28) (0.20)
------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $41.40 $41.47 $33.19 $32.34 $28.50 $28.05 $17.72
====== ====== ====== ====== ====== ====== ======
Total return<F124><F125>25.56%25.79% 2.77% 16.15% 8.86% 60.23%(10.47)%
Supplemental data
and ratios:
Net assets, in
thousands, end
of period $87,269 $434,228 $395,584$347,130 $205,207 $96,017 $39,179
Ratio of net
expenses
to average net
assets<F126> 1.09% 0.90% 0.89% 0.88% 0.76% 0.75% 0.74%
Ratio of net
investment income
to average net
assets<F126> (0.19)% 0.00% 0.13% 0.24% 0.65% 1.10% 1.41%
Portfolio turnover
rate<F127> 79.25% 79.25% 69.74% 58.80% 31.94% 48.39% 41.79%
FINANCIAL HIGHLIGHTS, PART 6
INTERNATIONAL EQUITY FUND
--------------------------------------
April 28,
Year ended 1994<F120>
October 31, 1995<F123> through
---------------------------- Oct. 31,
Series A Series Institutional 1994
-------- -------------------- ----
Per Share Data:
Net asset value,
beginning of period $19.99 $19.99 $20.00
Income from investment operations:
Net investment income 0.08 0.12 0.04
Net realized and unrealized
gains (losses) on securities (0.87) (0.87) (0.05)
Total from investment operations (0.79) (0.75) (0.01)
Less distributions:
Dividends from net
investment income (0.04) (0.04) -
Distributions from capital gains (0.01) (0.01) -
Total distributions (0.05) (0.05) -
Net asset value, end of period $19.15 $19.19 $19.99
Total return<F124><F125> (3.95)% (3.75)% (0.05)%
Supplemental data and ratios:
Net assets, in thousands,
end of period $1,633 $31,187 $23,756
Ratio of net expenses
to average net assets<F126> 1.70% 1.50% 1.49%
Ratio of net investment income
to average net assets<F126> 0.46% 0.66% 0.44%
Portfolio turnover rate<F127> 15.12% 15.12% 6.55%
<F120>Commencement of operations.
<F121>Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F122>Effective February 3, 1992, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F123>On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995, Institutional
shareowners exchanged their Series A shares for the Funds' Institutional series
shares. For the year ended October 31, 1995, the Financial Highlights ratios of
net expenses to average net assets, ratios of net investment income to average
net assets, total return and the per share income from investment operations and
distributions are presented on a basis whereby the Funds' net investment income,
net expenses, net realized and unrealized gains (losses) and distributions for
the period November 1, 1994, through January 9, 1995, were allocated to each
class of shares based upon the relative net assets of each class of shares as of
the close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for the
period January 10, 1995, through October 31, 1995.
<F124>Not annualized for the period ended October 31, 1990, for the Growth and
Income, Equity Index and Special Growth Funds and for the period ended October
31, 1992, for the Balanced Fund and for the period ended October 31, 1993, for
the MidCore Growth Fund and for the period ended October 31, 1994, for the
International Equity Fund.
<F125>The total return does not reflect the 4% front-end sales charge for Series
A.
<F126>Annualized for the period ended October 31, 1990, for the Growth and
Income, Equity Index and Special Growth Funds and for the period ended October
31, 1992, for the Balanced Fund and for the period ended October 31, 1993, for
the MidCore Growth Fund and for the period ended October 31, 1994, for the
International Equity Fund.
<F127>Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to the financial statements.
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 1995
GROWTH EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED AND INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
-------- --------- ------ ------- ------- ------------
INVESTMENT INCOME:
Dividend income:
Domestic $ 411 $ 3,924 $ 3,200 $ 916 $ 1,539 -
Foreign (net of
withholding
taxes of $84) - - - - - $ 538
Interest income:
Domestic 2,897 744 377 393 2,461 87
Foreign - - - - - 2
----- ----- ----- ----- ----- -----
3,308 4,668 3,577 1,309 4,000 627
----- ----- ----- ----- ----- -----
EXPENSES:
Investment advisory
fees 828 1,350 320 956 3,340 431
Administration fees 134 217 156 155 540 35
Shareowner servicing
and accounting costs 99 132 94 71 244 95
Service organization
fees - Series A 37 73 30 17 149 3
Custody fees 56 48 62 37 123 72
Federal and state
registration fees 10 16 19 25 32 34
Professional fees 24 29 27 33 34 40
Reports to shareowners 13 18 6 10 62 46
Amortization of
organization costs 5 1 1 3 2 5
Directors' fees and
expenses 5 5 5 5 5 5
Other 3 7 6 4 11 1
----- ----- ----- ----- ----- -----
Total expenses
before waiver 1,214 1,896 726 1,316 4,542 767
Less: Waiver of
expenses (350) (203) (98) (152) (394) (332)
----- ----- ---- ----- ----- -----
Net Expenses 864 1,693 628 1,164 4,148 435
--- ----- --- ----- ----- ---
NET INVESTMENT
INCOME (LOSS) 2,444 2,975 2,949 145 (148) 192
----- ----- ----- --- ----- ---
REALIZED AND
UNREALIZED
GAIN (LOSS):
Net realized gain
(loss) on:
Investments 3,757 8,861 1,377 2,657 57,101 666
Foreign currency - - - - - (5)
Change in unrealized
appreciation
(depreciation) on:
Investments 14,596 28,643 26,047 20,823 49,078 (1,826)
Foreign currency - - - - - 1
------ ----- ----- ----- ----- -----
Net gain on
investments
and foreign
currency 18,353 37,504 27,424 23,480 106,179 (1,164)
------ ------ ------ ------ ------- -------
NET INCREASE
(DECREASE)
IN NET ASSETS
RESULTING
FROM OPERATIONS $20,797 $40,479 $30,373 $23,625 $106,031 $ (972)
======= ======= ======= ======= ======= =====
See notes to the financial statements.
BALANCED FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market Value
of Shares (in thousands)
-------- ------------
COMMON STOCKS 63.0%
AUTO PARTS 1.0%
5,200 APS Holding Corporation<F128> 107
25,000 AutoZone, Inc. <F128> 619
1,600 Copart, Inc. <F128> 36
19,800 Lear Seating Corporation<F128> 549
-----
1,311
-----
BIO-TECHNOLOGY 0.4%
12,000 Millipore Corporation 424
10,600 Perseptive Biosystems, Inc. <F128> 112
-----
536
-----
BUILDING MATERIALS 0.2%
6,900 Home Depot, Inc. 257
-----
BUSINESS MACHINES & SOFTWARE 0.8%
16,600 Ceridian Corporation<F128> 722
900 Madge Networks N. V. <F128> 38
3,500 Mylex Corporation<F128> 65
1,800 National Instruments Corporation<F128> 34
3,500 Network General Corporation<F128> 145
---
1,004
-----
BUSINESS SERVICES 4.9%
18,900 H & R Block, Inc. 780
7,100 Danka Business Systems PLC ADR 238
30,061 First Data Corporation 1,988
2,425 FIserv, Inc. <F128> 62
8,100 Franklin Quest Company<F128> 193
26,000 General Motors Corporation - Class E 1,225
5,800 Interim Services, Inc. <F128> 173
29,400 Manpower, Inc. 797
10,900 Medaphis Corporation<F128> 346
8,100 Robert Half International, Inc. <F128> 296
5,500 U.S. Delivery Systems, Inc. <F128> 114
-----
6,212
-----
CAPITAL GOODS 0.4%
10,400 York International Corporation 455
-----
CHEMICALS 0.4%
21,200 Airgas, Inc. <F128> 564
-----
COMMUNICATIONS & MEDIA 2.4%
4,000 Cellstar Corporation<F128> 111
11,400 Infinity Broadcasting Corporation<F128> 371
25,800 Interpublic Group of Companies, Inc. 999
53,300 PanAmSat Corporation<F128> 806
13,600 Reuters Holdings, PLC ADR 755
-----
3,042
-----
COMPUTERS 2.8%
17,200 Bay Networks<F128> 1,139
12,600 Compuware Corporation<F128> 287
1,900 McAfee Associates, Inc. <F128> 111
2,600 Microsoft Corporation<F128> 260
2,000 Parametric Technology Company<F128> 134
33,500 Platinum Technology<F128> 611
3,500 Reynolds & Reynolds - Class A 125
1,800 Softkey International, Inc. <F128> 57
31,100 Sungard Data Systems, Inc. <F128> 855
---
3,579
-----
CONSUMER PRODUCTS 0.5%
23,900 Newell Company 577
-----
CONSUMER SERVICES 0.6%
20,300 Loewen Group, Inc. 813
-----
CONTAINERS 0.2%
11,000 Sealed Air Corporation<F128> 290
-----
DISTRIBUTION 1.5%
21,800 Alco Standard Corporation 1,929
-----
DIVERSIFIED 0.2%
7,600 Kemet Corporation<F128> 262
-----
DRUGS 1.0%
30,200 Elan Corporation, PLC ADR<F128> 1,212
-----
ELECTRICAL EQUIPMENT 1.9%
34,600 AVX Corporation 1,077
28,687 Molex, Inc. - Class A 882
10,800 Vishay Intertechnology, Inc. <F128> 381
-----
2,340
-----
ELECTRONICS 0.9%
16,000 Arrow Electronics, Inc. <F128> 812
1,300 Checkpoint Systems, Inc. <F128> 38
5,000 Digi International, Inc. <F128> 134
1,300 Progress Software Corporation<F128> 85
200 SGS-Thomson Microelectronics N.V.<F128> 9
-----
1,078
-----
ENTERTAINMENT & LEISURE 3.0%
41,400 GTECH Holdings Corporation<F128> 1,014
10,900 Hollywood Entertainment Corporation 291
44,800 Mirage Resorts, Inc. <F128> 1,467
5,000 Regal Cinemas, Inc. <F128> 196
17,436 Viacom, Inc. - Class B<F128> 872
-----
3,840
-----
FINANCE COMPANIES 1.3%
1,800 Advanta Corporation - Class B 64
31,800 First USA, Inc. 1,463
3,900 National Data Corporation 103
-----
1,630
-----
FINANCIAL SERVICES 3.4%
6,400 AMBAC, Inc. 270
11,600 Federal National Mortgage Association 1,216
2,100 Green Tree Financial Corporation 56
44,000 MBNA Corporation 1,622
10,800 Quick And Reilly Group, Inc. 257
40,700 The Charles Schwab Corporation 931
-----
4,352
-----
HEALTH CARE SERVICES & SUPPLIES 11.5%
7,100 American Medical Response, Inc. <F128> 205
36,000 Biomet, Inc. <F128> 599
12,450 Cardinal Health, Inc. 640
40,825 Columbia/HCA Healthcare Corporation 2,006
3,600 Cordis Corporation<F128> 398
45,900 Foundation Health Corporation<F128> 1,945
24,100 Health Care & Retirement
Corporation<F128> 708
35,212 Health Management Associates, Inc. -
Class A 757
17,400 Healthsource, Inc. <F128> 922
23,000 Lincare Holdings, Inc. <F128> 572
8,500 Medisense, Inc. <F128> 182
7,900 Medpartners, Inc. <F128> 221
6,500 Multicare Companies, Inc. <F128> 122
13,600 Oxford Health Plans<F128> 1,064
12,700 Pacificare Health Systems, Inc. <F128> 924
13,100 Quorum Health Group, Inc. <F128> 281
6,100 Renal Treatment Centers, Inc. <F128> 220
23,800 Surgical Care Affiliates, Inc. 705
16,600 United Healthcare Corporation 882
40,700 Vencor, Inc. <F128> 1,129
------
14,482
------
HOSPITAL SUPPLIES & SERVICES 0.3%
6,800 Boston Scientific Corporation<F128> 286
2,000 IDEXX Laboratories, Inc. 81
-----
367
-----
HOUSING 1.0%
32,118 Clayton Homes, Inc. 843
6,200 Oakwood Homes Corp. 233
7,800 Toll Brothers, Inc. <F128> 139
-----
1,215
-----
INSURANCE 4.1%
23,600 AFLAC, Inc. 962
8,600 Equitable of Iowa Companies 301
11,400 Arthur J. Gallagher & Company 403
17,200 MBIA, Inc. 1,198
26,300 MGIC Investment Corporation 1,496
21,700 Protective Life Corporation 618
5,400 Vesta Insurance Group, Inc. 218
-----
5,196
-----
LODGING 0.2%
9,500 La Quinta Inns, Inc. 245
-----
MACHINERY - AUTOMOTIVE 1.0%
34,100 Varity Corporation<F128> 1,236
-----
MACHINERY - INDUSTRIAL 1.1%
23,700 Thermo Electron Corporation<F128> 1,090
14,100 TriMas Corporation 293
-----
1,383
-----
MISCELLANEOUS 0.1%
5,300 Keane, Inc. <F128> 143
-----
OFFICE PRODUCTS 1.0%
9,325 Office Depot, Inc. <F128> 267
3,000 OfficeMax, Inc. <F128> 74
23,650 Staples, Inc. <F128> 630
6,500 Viking Office Products, Inc. <F128> 289
-----
1,260
-----
OIL & GAS DOMESTIC 0.6%
16,000 Enron Corporation 550
11,500 NGC Corporation 104
2,680 Tejas Gas Corporation<F128> 126
-----
780
-----
POLLUTION CONTROL 0.5%
19,600 Browning-Ferris Industries, Inc. 571
-----
PRINTING & PUBLISHING 0.1%
4,200 Banta Corporation 182
-----
PRODUCTION 1.5%
7,000 Dover Corporation 277
25,900 Tyco International, Ltd. 1,573
-----
1,850
-----
RAILROADS 0.7%
11,500 Arnold Industries, Inc. 187
3,000 Burlington Northern Santa Fe 252
5,450 Comair Holdings, Inc. 153
4,584 Fritz Companies, Inc. 160
3,800 Heartland Express, Inc. <F128> 103
1,700 TNT Freightways Corporation 31
-----
886
-----
RESTAURANTS 0.9%
9,750 Apple South, Inc. 200
1,500 DF & R Restaurants, Inc. <F128> 46
5,900 IHOP Corporation<F128> 127
2,500 Landry's Seafood Restaurants Incorporated 34
6,300 Lone Star Steakhouse & Saloon<F128> 243
13,800 Outback Steakhouse, Inc. <F128> 433
-----
1,083
-----
RETAIL 3.6%
400 CompUSA, Inc. <F128> 15
27,400 Consolidated Stores Corporation<F128> 634
12,000 Dept 56, Inc.<F128> 544
3,600 Discount Auto Parts, Inc.<F128> 96
31,685 Dollar General Corporation 776
33,000 General Nutrition Companies, Inc.<F128> 821
24,800 Kohl's Corporation<F128> 1,125
6,600 Lowe's Companies, Inc. 178
3,700 Micro Warehouse, Inc.<F128> 165
13,100 Musicland Stores Corporation<F128> 85
9,100 Sports and Recreation, Inc.<F128> 67
5,200 Trend Lines, Inc. - Class A<F128> 68
-----
4,574
-----
SEMICONDUCTORS 1.4%
9,800 Atmel Corporation<F128> 306
1,400 Burr-Brown Corporation<F128> 46
11,300 Dallas Semiconductor Corporation 240
3,800 Integrated Circuit Systems<F128> 52
2,100 Lattice Semiconductor Corporation<F128> 82
1,800 Linear Technology Corporation 79
12,100 LSI Logic Corporation<F128> 570
600 Maxim Integrated Products, Inc.<F128> 45
3,400 Microchip Technology, Inc.<F128> 135
1,100 SDL, Inc.<F128> 28
5,700 S3 Inc.<F128> 98
2,900 Triquint Semiconductor, Inc.<F128> 66
1,900 VLSI Technology<F128> 45
-----
1,792
-----
TELECOMMUNICATIONS 2.1%
13,000 Aspect Telecommunications
Corporation<F128> 447
12,400 Boston Technology, Inc.<F128> 171
20,600 Century Telephone Enterprises 597
6,200 Cidco, Inc. <F128> 184
2,300 Comverse Technology<F128> 52
11,300 DSC Communications Corporation<F128> 418
3,300 Pairgain Technologies<F128> 141
500 U.S. Robotics Corporation<F128> 46
19,500 Worldcom, Inc.<F128> 636
-----
2,692
-----
TEXTILES & APPAREL 1.1%
6,000 Gymboree Corporation<F128> 136
15,100 Jones Apparel Group, Inc.<F128> 517
4,400 The Men's Wearhouse, Inc.<F128> 171
8,000 Nike, Inc. - Class B 454
2,200 Oakley Incorporated<F128> 76
-----
1,354
-----
TRAVEL & RECREATION 2.3%
53,500 Carnival Corporation - Class A 1,244
30,000 CUC International, Inc.<F128> 1,039
27,400 Promus Hotel Corporation<F128> 603
-----
2,886
-----
TRUCKING 0.1%
3,550 Wabash National Corporation 90
-----
Total Common Stocks
(Cost $60,528) 79,550
------
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
LONG-TERM INVESTMENTS 33.7%
ASSET-BACKED SECURITIES 7.1%
CREDIT CARD RECEIVABLES 7.1%
350 Banc One Credit Card Master Trust
1994-C, Class A, 7.80%, 12/15/00 367
1,000 Capital One Master Trust I, Series
1993-1, Class A, 5.20%, 10/15/98 980
1,700 Discover Card Master Trust I, Series
1993-2, Class A, Credit Card Pass-Thru
Certificates, 5.40%, 5/15/99 1,673
1,150 First Chicago Master Trust I,
Series 1994-L, 7.15%, 2/15/00 1,187
350 HFC Private Label Credit Card Trust,
Series 1994-2, Class A, 7.80%, 9/20/03 366
950 MBNA Master Credit Card Trust,
Series 1993-3, Asset Backed Certificates,
5.40%, 3/15/99 934
1,800 Sears Credit Account Master Trust II,
Class A, Master Trust Certificates,
Series 1994-1, 7.00%, 8/15/00 1,856
CREDIT CARD RECEIVABLES 7.1% (CONT.)
1,650 Standard Credit Card Trust, Series 1993-3,
Credit Card Participation Certificates,
5.50%, 1/07/99 1,623
-----
8,986
-----
CORPORATE BONDS 10.7%
350 Bankamerica Corp. Subordinated Notes,
7.75%, 7/15/02 373
250 Chase Manhattan Corporation Subordinated
Notes, 10.00%, 6/15/99 279
250 Chase Manhattan Corporation Medium Term
Notes, 8.65%, 2/13/99 267
Chemical Banking Corporation
Subordinated Notes:
250 10.375%, 3/15/99 281
750 9.75%, 6/15/99 834
1,050 Chrysler Financial Corporation
Debentures, 13.25%, 10/15/99 1,291
650 Ford Capital B.V. Notes,
9.00%, 8/15/98 698
450 Ford Motor Credit Co. Debentures,
5.625%, 12/15/98 444
350 General Motors Acceptance Corporation
Medium Term Notes, 5.75%, 12/10/97 347
950 Goldman Sachs Group, L.P. Notes, 6.875%,
9/15/99 (Acquired 10/15/93, 5/13/94;
Cost $957) <F129> 960
300 GTE Northwest First Mortgage, Series EE,
9.75%, 10/15/30 321
Heller Financial, Inc. Notes:
750 9.375%, 3/15/98 802
350 7.875%, 11/01/99 368
1,000 Household Finance Corp. Subordinated
Notes, 7.125%, 4/30/99 1,025
1,105 International Lease Finance Corporation
Debentures, 8.35%, 10/01/98 1,169
550 Lehman Brothers Holdings, Inc. Notes,
8.375%, 2/15/99 580
700 Lehman Brothers Holdings, Inc. Senior
Subordinated Notes, 10.00%, 5/15/99 774
1,000 Merrill Lynch Senior Notes,
7.75%, 3/01/99 1,046
150 NCNB Corp. Debentures,
10.20%, 7/15/15 195
350 Salomon, Inc. Medium Term Notes,
5.50%, 1/31/98 340
550 The Charles Schwab Corporation Medium
Term Notes, 5.90%, 10/01/99 539
600 Security Pacific Corp. Debentures,
9.75%, 5/15/99 661
------
13,594
------
OTHER 0.4%
250 Italy (Republic of) Debentures,
6.875%, 9/27/23 230
250 Quebec Province,
11.00%, 6/15/15 296
-----
526
-----
U.S. GOVERNMENT AGENCY ISSUES 0.6%
350 Federal Home Loan Mortgage Corporation
Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru
Certificates, Series 1169,
Class D, 7.00%, 5/15/21 353
350 Federal National Mortgage Association
Debentures, 9.50%, 11/10/20 374
-----
727
-----
U.S. TREASURY OBLIGATIONS 14.9%
U. S. Treasury Bonds:
1,200 10.75%, 2/15/03 1,535
9,925 9.25%, 2/15/16 13,126
4,000 U. S. Treasury Notes,
6.75%, 5/31/99 4,126
------
18,787
------
Total Long-Term Investments
(Cost $40,699) 42,620
------
SHORT-TERM INVESTMENTS 2.4%
INVESTMENT COMPANIES 2.4%
10 Financial Square Prime Obligation Fund$ 10
3,057 Short-Term Investments Co.
Liquid Assets Portfolio 3,057
-----
Total Short-Term Investments
(Cost $3,067) 3,067
-----
Total Investments 99.1%
(Cost $104,294) 125,237
-------
Other Assets, less Liabilities 0.9% 1,147
-------
NET ASSETS 100.0% 126,384
=======
<F128>Non-income producing
<F129>Unregistered security
See notes to the financial statements.
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market Value
of Shares (in thousands)
- --------- ------------
COMMON STOCKS 80.9%
AEROSPACE & AIRCRAFT 0.9%
43,000 Rockwell International Corporation 1,913
-----
BANKING 1.7%
120,800 Norwest Corporation 3,564
-----
BUSINESS SERVICES 3.6%
128,625 H & R Block, Inc. 5,306
51,200 Service Corporation International 2,054
-----
7,360
-----
CHEMICALS 5.7%
86,700 Avery Dennison Corporation 3,880
40,200 Ecolab, Inc. 1,166
44,600 Hercules, Inc. 2,381
110,200 Praxair, Inc. 2,975
33,300 Valspar Corporation 1,299
------
11,701
------
COMMUNICATIONS & MEDIA 1.8%
95,600 Interpublic Group of Companies, Inc. 3,705
-----
CONSUMER PRODUCTS 3.3%
56,900 Duracell International, Inc. 2,980
156,000 Newell Company 3,764
-----
6,744
-----
CONTAINERS 0.9%
69,000 Bemis Company, Inc. 1,794
-----
COSMETICS & SOAP 1.4%
62,000 Gillette Company 2,999
-----
DISTRIBUTION 3.7%
85,425 Alco Standard Corporation 7,560
-----
DRUGS 8.4%
73,000 Allergan, Inc. 2,144
36,000 Johnson & Johnson 2,934
84,325 McKesson Corporation 4,026
98,200 Pfizer, Inc. 5,634
46,000 Schering-Plough 2,467
------
17,205
------
ELECTRIC 2.0%
111,250 Nipsco Industries, Inc. 4,061
------
ELECTRICAL EQUIPMENT 4.9%
52,000 AMP, Inc. 2,041
86,700 Belden, Inc. 2,092
37,600 Emerson Electric Company 2,679
50,200 General Electric Company 3,175
-----
9,987
-----
ELECTRONICS 1.2%
38,750 Motorola, Inc. 2,543
-----
FINANCIAL SERVICES 3.0%
46,100 Federal National Mortgage Association 4,835
35,000 MBNA Corporation 1,290
-----
6,125
-----
FOOD, BEVERAGES & TOBACCO 3.1%
21,500 McCormick and Co. 532
83,800 Nabisco Holdings Corporation - Class A 2,252
66,325 PepsiCo, Inc. 3,499
-----
6,283
-----
INSURANCE 4.4%
43,700 MBIA, Inc. 3,042
55,700 MGIC Investment Corporation 3,168
211,600 Western National Corp. 2,910
-----
9,120
-----
NATURAL GAS 0.9%
55,000 Enron Corporation 1,891
-----
OFFICE EQUIPMENT 2.5%
95,000 Diebold, Inc. 5,035
-----
OIL - DOMESTIC 0.9%
56,600 Phillips Petroleum Company 1,825
-----
OIL - INTERNATIONAL 1.8%
37,325 Mobil Corporation 3,760
-----
PAPER & FOREST PRODUCTS 1.6%
11,850 Kimberly-Clark Corporation 861
44,950 Scott Paper Company 2,393
-----
3,254
-----
POLLUTION CONTROL 0.9%
65,900 Browning-Ferris Industries, Inc. 1,919
-----
PRINTING & PUBLISHING 2.7%
29,575 McGraw-Hill, Inc. 2,421
48,925 Tribune Company 3,088
-----
5,509
-----
PRODUCTION 4.2%
53,300 Dover Corporation 2,105
26,400 Harsco Corporation 1,393
85,000 Tyco International, Ltd. 5,164
-----
8,662
-----
RAILROADS 2.0%
107,000 Illinois Central Corporation - Class A 4,093
-----
REAL ESTATE 3.1%
70,525 Federal Realty Investment Trust 1,428
70,600 Post Properties, Inc. 2,118
166,416 Security Capital Industrial 2,725
-----
6,271
-----
RETAIL 5.7%
93,200 Albertson's, Inc. 3,099
30,900 Gap, Inc. 1,217
117,150 Hannaford Brothers Company 3,060
109,350 May Department Stores Company 4,292
------
11,668
------
TELECOMMUNICATIONS 4.1%
27,350 AT & T Corporation 1,751
143,000 Frontier Corporation 3,861
65,700 GTE Corporation 2,710
-----
8,322
-----
TEXTILES & APPAREL 0.5%
46,700 Warnaco Group - Class A 1,086
-------
Total Common Stock
(Cost $129,746) 165,959
-------
PREFERRED STOCK 4.8%
BUSINESS SERVICES 1.8%
57,000 General Motors Corporation Series C 3,819
-----
FINANCIAL SERVICES 3.0%
77,300 American Express 4,242
35,300 Merrill Lynch & Co., Inc, 6.5% Strypes 1,902
-----
6,144
-----
Total Preferred Stock
(Cost $8,493) 9,963
-----
Principal
Amount
(in thousands)
- --------------
LONG-TERM INVESTMENTS 4.1%
CORPORATE CONVERTIBLE BONDS 4.1%
$ 81 Browning-Ferris Industries, Inc.
(Aces) Subordinated Convertible
Debentures, 7.25%, 6/30/98 2,673
-----
2,175 Service Corporation International
Subordinated Convertible Debentures,
6.50%, 9/01/01 4,176
-----
800 Thermo Electron Corporation
Subordinated Convertible Debentures,
4.625%, 8/01/97 1,648
-----
Total Long-Term Investments
(Cost $6,662) 8,497
-----
Number
of Shares Market Value
(in thousands) (in thousands)
- -------------- ------------
SHORT-TERM INVESTMENTS 11.3%
INVESTMENT COMPANIES 7.9%
6,451 Financial Square Prime Obligation Fund 6,451
9,716 Short-Term Investments Co.
Liquid Assets Portfolio 9,716
------
16,167
------
Principal
Amount
(in thousands)
- --------------
VARIABLE RATE DEMAND NOTES 3.4%
7,000 Warner- Lambert Co. 7,000
-------
Total Short-Term Investments
(Cost $23,167) 23,167
-------
Total Investments 101.1%
(Cost $168,068) 207,586
-------
Liabilities, less Other
Assets (1.1)% (2,410)
-------
NET ASSETS 100.0% 205,176
=======
See notes to the financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market Value
of Shares (in thousands)
--------- -------------
COMMON STOCKS 94.2%
AEROSPACE & AIRCRAFT 2.3%
10,100 Allied Signal, Inc. 429
12,000 Boeing Company 788
2,000 General Dynamics Corporation 111
6,934 Lockheed Martin Corporation 472
4,000 McDonnell Douglas Corporation 327
1,700 Northrop Grumman Corporation 97
9,000 Raytheon Company 393
7,600 Rockwell International Corporation 338
3,200 Textron, Inc. 220
4,200 United Technologies Corporation 373
-----
3,548
-----
AIR TRANSPORTATION 0.4%
2,600 AMR Corporation<F130> 172
1,800 Delta Air Lines, Inc. 118
1,800 Federal Express Corporation<F130> 148
5,600 Southwest Airlines Company 112
-----
550
-----
APPLIANCES 0.3%
1,500 Armstrong World Industries, Inc. 89
3,200 Black & Decker Corporation 108
4,000 Maytag Corporation 76
1,400 Snap-On Tools, Inc. 59
2,400 Whirlpool Corporation 127
-----
459
-----
AUTO & TRUCK 2.2%
12,875 Chrysler Corporation 665
3,700 Dana Corporation 95
2,800 Eaton Corporation 144
2,000 Echlin, Inc. 71
35,700 Ford Motor Company 1,026
25,900 General Motors Corporation 1,133
4,125 Genuine Parts Company 163
1,320 PACCAR, Inc. 55
2,200 TRW, Inc. 145
-----
3,497
-----
BANKING 5.6%
13,687 Banc One Corporation 462
3,900 Bank of Boston Corporation 174
6,500 Bank of New York 273
13,112 BankAmerica Corporation 754
2,900 Bankers Trust New York Corporation 185
3,300 Barnett Banks, Inc. 182
4,000 Boatmen's Bancshares, Inc. 152
6,500 Chase Manhattan Corporation 371
8,382 Chemical Banking Corporation 477
13,700 Citicorp 889
4,800 CoreStates Financial Corporation 175
4,700 First Bank System, Inc. 234
3,100 First Chicago Corporation 210
2,800 First Fidelity Bancorporation 183
2,600 First Interstate Bancorp, Inc. 335
6,200 First Union Corporation 308
4,800 Fleet Financial Group, Inc. 186
4,800 Mellon Bank Corporation 241
6,600 J.P. Morgan & Company, Inc. 509
9,305 NationsBank Corporation 612
5,350 NBD Bancorp, Inc. 203
11,000 Norwest Corporation 324
7,900 PNC Bank Corporation 207
1,700 Republic New York Corporation 100
4,000 Shawmut National Corporation 136
3,800 Sun Trust Banks, Inc. 245
3,600 US Bancorp 107
5,700 Wachovia Corporation 252
1,700 Wells Fargo & Company 357
-----
8,843
-----
BIO-TECHNOLOGY 0.3%
9,200 Amgen, Inc. <F130> 442
1,800 Millipore Corporation 64
-----
506
-----
BUILDING & HOUSING 0.5%
8,300 Corning, Inc. 217
3,200 Fluor Corporation 181
5,500 Masco Corporation 155
2,000 Owens-Corning Fiberglass Corporation<F130> 85
1,500 The Stanley Works 72
-----
710
-----
BUILDING MATERIALS 0.5%
16,400 Home Depot, Inc. 611
1,700 Johnson Controls, Inc. 99
-----
710
-----
BUSINESS MACHINES & SOFTWARE 3.1%
2,700 Amdahl Corporation<F130> 25
3,900 Apple Computer, Inc. 142
1,500 Ceridian Corporation<F130> 65
9,400 COMPAQ Computer Corporation<F130> 524
4,950 Digital Equipment Corporation<F130> 268
4,300 Honeywell, Inc. 181
19,900 International Business
Machines Corporation 1,935
14,550 Oracle Systems Corporation<F130> 635
5,400 Pitney-Bowes, Inc. 236
3,200 Sun Microsystems, Inc. <F130> 250
3,900 Tandem Computers, Inc. <F130> 44
5,000 Unisys Corporation<F130> 28
3,850 Xerox Corporation 500
-----
4,833
-----
BUSINESS SERVICES 1.9%
1,600 Autodesk, Inc. 54
5,000 Automatic Data Processing, Inc. 358
3,600 H & R Block, Inc. 148
9,200 Cisco Systems, Inc. <F130> 713
8,250 Computer Associates International, Inc. 454
2,000 Computer Sciences Corporation<F130> 134
3,400 Deluxe Corporation 91
3,300 Dial Corporation 80
6,121 Dun & Bradstreet Corporation 366
4,100 First Data Corporation 271
3,600 Moore Corporation Limited 69
1,600 National Service Industries 48
3,800 Service Corporation International 152
-----
2,938
-----
CHEMICALS 2.9%
4,000 Air Products and Chemicals, Inc. 206
9,500 Dow Chemical Company 652
19,100 Dupont (E.I.) De Nemours & Company 1,191
2,200 Ecolab, Inc. 64
3,400 W.R. Grace & Company 190
2,500 Great Lakes Chemical Corporation 168
3,900 Hercules, Inc. 208
4,100 Monsanto Company 429
5,800 Morton International, Inc. 177
2,500 Nalco Chemical Company 75
7,300 PPG Industries, Inc. 310
4,900 Praxair, Inc. 132
2,300 Rohm & Haas Company 127
5,200 Rubbermaid, Inc. 136
3,300 Sherwin-Williams Company 124
2,000 Sigma-Aldrich Corporation 95
4,650 Union Carbide Corporation 176
3,000 The Williams Companies, Inc. 116
-----
4,576
-----
COMPUTERS 0.1%
5,700 Silicon Graphics, Inc. 190
CONGLOMERATE 0.4%
3,600 ITT Corporation 441
5,924 Tenneco, Inc. 260
-----
701
-----
CONSUMER DURABLES 0.6%
3,037 Eastman Chemical Company 181
11,550 Eastman Kodak Company 723
1,428 Polaroid Corporation 61
-----
965
-----
CONSUMER PRODUCTS 0.1%
6,100 Newell Company 147
-----
CONTAINERS 0.2%
1,200 Ball Corporation 33
2,100 Bemis Company, Inc. 55
3,200 Crown Cork & Seal Company, Inc.<F130> 112
3,242 Stone Container Corporation 53
-----
253
-----
COSMETICS & SOAP 2.2%
2,300 Avon Products, Inc. 164
1,700 Clorox Company 122
4,900 Colgate-Palmolive Company 339
15,144 Gillette Company 733
4,100 International Flavors & Fragrances, Inc. 198
23,900 Procter & Gamble Company 1,936
-----
3,492
-----
DISTRIBUTION 0.1%
1,679 Alco Standard Corporation 149
-----
DIVERSIFIED 0.5%
5,500 Unilever N.V. 720
-----
DRUGS 7.8%
27,700 Abbott Laboratories 1,101
2,800 Allergan, Inc. 82
2,700 Alza Corporation - Class A<F130> 59
10,500 American Home Products Corporation 931
1,700 Bard (C.R.), Inc. 48
9,600 Baxter International, Inc. 371
2,100 Becton, Dickinson & Company 136
17,660 Bristol-Meyers Squibb Company 1,347
22,500 Johnson & Johnson 1,834
10,100 Eli Lilly & Company 976
8,200 Medtronic, Inc. 474
42,700 Merck & Company, Inc. 2,455
21,600 Pfizer, Inc. 1,239
12,800 Schering-Plough 686
1,600 St. Jude Medical, Inc. <F130> 85
5,800 Tenet Healthcare Corporation 104
5,900 Upjohn Company 299
------
12,227
------
ELECTRIC 1.0%
5,432 CINergy Corporation 154
8,600 Consolidated Edison Company
Of New York, Inc. 261
7,300 Duke Power Company 327
4,500 General Public Utilities Corporation 141
9,800 PacifiCorp 185
8,400 Texas Utilities Company 309
3,500 Union Electric Company 137
-----
1,514
-----
ELECTRICAL EQUIPMENT 3.0%
7,500 AMP, Inc. 294
8,300 Emerson Electric Company 591
58,500 General Electric Company 3,700
1,700 Grainger (W.W.), Inc. 106
2,600 Scientific-Atlanta, Inc. 32
-----
4,723
-----
ELECTRONICS 4.1%
1,700 General Signal Corporation 54
1,400 Harris Corporation 81
17,800 Hewlett-Packard Company 1,649
28,200 Intel Corporation 1,970
6,200 Loral Corporation 184
20,500 Motorola, Inc. 1,345
4,200 National Semiconductor Corporation<F130> 102
8,500 Northern Telecom Ltd. 306
1,200 Perkin-Elmer Corporation 42
1,100 Tektronix, Inc. 65
1,900 Teledyne, Inc. 47
6,600 Texas Instruments, Inc. 450
650 Thomas & Betts Corporation 42
1,600 Western Atlas, Inc. <F130> 70
-----
6,407
-----
ENERGY 3.0%
6,500 American Electric Power Company 248
5,750 Baltimore Gas & Electric Company 154
5,700 Carolina Power & Light Company 187
6,300 Central & South West Corporation 169
4,125 Coastal Corporation 134
3,300 Consolidated Natural Gas Company 125
5,300 Detroit Edison Company 179
6,300 Dominion Resources, Inc. 250
7,700 Entergy Corporation 219
6,500 FPL Group, Inc. 272
4,300 Houston Industries, Inc. 199
4,100 Niagara Mohawk Power Corporation 44
1,400 NICOR, Inc. 38
2,300 Northern States Power Company 109
5,100 Ohio Edison Company 117
3,100 Pacific Enterprises, Inc. 77
14,400 Pacific Gas & Electric Company 423
4,608 Panhandle Eastern Corporation 116
7,800 Peco Energy Company 228
8,300 Public Service Enterprises Group, Inc. 244
16,300 SCEcorp 277
3,100 Sonat, Inc. 89
24,000 Southern Company 573
7,700 Unicom Corporation 252
-----
4,723
-----
ENERGY-RAW MATERIALS 0.4%
5,100 Baker Hughes, Inc. 100
6,100 Dresser Industries, Inc. 127
4,300 Halliburton Company 178
900 Louisiana Land & Exploration Company 32
2,300 McDermott International, Inc. 37
10,300 Occidental Petroleum Corporation 221
-----
695
-----
ENTERTAINMENT & LEISURE 1.5%
4,500 Brunswick Corporation 88
3,650 Hasbro, Inc. 111
900 King World Productions, Inc. <F130> 31
7,290 Mattel, Inc. 210
24,300 McDonald's Corporation 996
2,400 Premark International, Inc. 111
6,621 Price/Costco, Inc. <F130> 113
12,685 Viacom, Inc. - Class B 634
3,850 Wendy's International, Inc. 77
-----
2,371
-----
FINANCE 1.5%
17,100 American Express Company 695
1,600 Beneficial Corporation 78
5,100 Great Western Financial Corporation 115
3,700 H.F. Ahmanson & Company 92
3,200 Household International, Inc. 180
6,500 Merrill Lynch & Company, Inc. 361
5,100 National City Corporation<F130> 157
3,500 Salomon, Inc. 126
56 Transport Holdings, Inc. - Class A<F130> 2
11,339 The Travelers, Inc. 573
-----
2,379
-----
FINANCIAL SERVICES 1.1%
5,973 Dean Witter Discover and Company 297
9,500 Federal National Mortgage Association 996
4,800 MBNA Corporation 177
2,700 Morgan Stanley Group, Inc. 235
-----
1,705
-----
FOOD, BEVERAGES & TOBACCO 7.7%
6,400 American Brands, Inc. 274
20,711 Archer-Daniels-Midland Company 334
8,700 Campbell Soup Company 456
43,600 Coca-Cola Company 3,134
8,375 ConAgra, Inc. 323
5,000 CPC International, Inc. 332
5,900 Dardeen Restaurants, Inc. 67
5,100 General Mills, Inc. 293
8,600 Heinz (H.J.) Company 400
3,100 Hershey Foods Corporation 185
7,700 Kellogg Company 556
2,100 Loews Corporation 308
26,700 PepsiCo, Inc. 1,408
29,100 Philip Morris Companies, Inc. 2,459
2,900 Pioneer Hi-Bred International, Inc. 144
4,600 Quaker Oats Company 157
3,400 Ralston-Ralston Purina Group 202
16,900 Sara Lee Corporation 496
5,900 Sysco Corporation 179
6,600 UST, Inc. 198
3,800 Wrigley (Wm) Jr. Company 177
------
12,082
------
FOREST PRODUCTS 1.7%
1,500 Avery Dennison Corporation 67
1,400 Boise Cascade Corporation 51
3,500 Champion International Corporation 187
1,300 Federal Paperboard Company 55
3,400 Georgia-Pacific Corporation 280
8,600 International Paper Company 318
2,900 James River Corporation of Virginia 93
5,700 Kimberly-Clark Corporation 414
3,672 Louisiana Pacific Corporation 88
2,200 Mead Corporation 127
700 Potlatch Corporation 29
5,200 Scott Paper Company 277
1,550 Temple-Inland, Inc. 71
2,350 Union Camp Corporation 120
2,925 Westvaco Corporation 81
7,050 Weyerhaeuser Company 311
2,200 Willamette Industries 128
-----
2,697
-----
GOLD & PRECIOUS METALS 0.6%
12,600 Barrick Gold Corporation 291
3,500 Cyprus Amax Minerals Company 91
3,000 Echo Bay Mines, Ltd. 27
7,100 Freeport McMoRan Copper & Gold, Inc. 162
4,100 Homestake Mining Company 63
8,461 Placer Dome, Inc. 185
5,152 Santa Fe Pacific Gold Corporation 51
-----
870
-----
HEALTH CARE SERVICES & SUPPLIES 1.1%
1,800 Bausch & Lomb, Inc. 62
2,700 Beverly Enterprises<F130> 32
15,252 Columbia/HCA Healthcare Corporation 749
2,200 Manor Care, Inc. 72
5,800 United Healthcare Corporation 308
4,600 Warner-Lambert Company 392
-----
1,615
-----
HOSPITAL SUPPLIES & SERVICES 0.2%
3,300 Biomet, Inc. <F130> 55
5,400 Boston Scientific Corporation<F130> 227
1,500 US Surgical Corporation 37
-----
319
-----
INSURANCE 3.4%
4,200 Aetna Life and Casualty Company 296
1,300 Alexander & Alexander Services, Inc. 29
15,773 Allstate Corporation 580
7,300 American General Corporation 240
16,355 American International Group, Inc. 1,380
3,100 Chubb Corporation 279
2,500 CIGNA Corporation 248
2,900 General Re Corporation 420
1,700 Jefferson-Pilot Corporation 112
8,202 KeyCorp 277
3,100 Lincoln National Corporation 138
2,600 Marsh & McLennan Companies, Inc. 213
3,200 Providian Corporation 126
2,200 SAFECO Corporation 141
2,900 St. Paul Companies, Inc. 147
2,450 Torchmark Corporation 102
2,200 Transamerica Corporation 149
2,600 UNUM Corporation 137
5,400 US Healthcare, Inc. 208
2,800 USF&G Corporation 47
-----
5,269
-----
LIQUOR 0.7%
8,800 Anheuser-Busch Companies, Inc. 581
2,500 Brown-Foreman Corporation - Class B 95
12,800 Seagram Company Ltd. 461
-----
1,137
-----
MACHINERY - AUTOMOTIVE 0.0%
1,500 Varity Corporation<F130> 54
-----
MACHINERY - INDUSTRIAL 0.0%
1,600 Harnischfeger Industries, Inc. 50
-----
MEDIA 1.9%
1,200 Andrew Corporation<F130> 51
5,500 Capital Cities/ABC, Inc. 652
2,375 CBS, Inc. 192
8,100 Comcast Corporation - Class A 145
3,700 Dow Jones & Company, Inc. 130
4,900 Gannett Company, Inc. 266
2,500 Harcourt General, Inc. 99
2,800 Interpublic Group Of Companies, Inc. 108
1,900 Knight-Ridder, Inc. 105
3,100 New York Times Company - Class A 86
23,100 Tele-Communications, Inc. - Class A<F130> 393
13,100 Time Warner, Inc. 478
3,623 Times Mirror Company - Class A 105
2,200 Tribune Company 139
-----
2,949
-----
METALS & MINERALS 0.3%
3,100 Bethlehem Steel Corporation<F130> 41
1,300 Inland Steel Industries, Inc. 30
3,000 Nucor Corporation 144
11,466 USX Corporation-Marathon Group, Inc. 204
2,293 USX Corporation-US Steel Group, Inc. 69
3,225 Worthington Industries, Inc. 54
-----
542
-----
MISCELLANEOUS 0.8%
5,400 Applied Materials, Inc. <F130> 271
2,900 Mallinckrodt Group, Inc. 101
14,700 Minnesota Mining & Manufacturing
Company 836
-----
1,208
-----
NATURAL GAS 0.2%
8,500 Enron Corporation 292
-----
NON-FERROUS METALS 0.8%
7,850 Alcan Aluminum Ltd. 248
6,400 Aluminum Company of America 326
1,200 ASARCO, Inc. 39
4,800 Englehard Corporation 119
3,600 Inco, Ltd. 124
2,721 Newmont Mining Corporation 103
2,700 Phelps Dodge Corporation 171
2,100 Reynolds Metals Company 106
-----
1,236
-----
OFFICE EQUIPMENT 0.1%
12,000 Novell, Inc. 198
-----
OIL - DOMESTIC 1.9%
3,000 Amerada Hess Corporation 135
17,200 Amoco Corporation 1,099
1,900 Ashland, Inc. 60
5,500 Atlantic Richfield Company 587
4,800 Burlington Resources, Inc. 173
1,800 Columbia Gas Systems, Inc. <F130> 69
1,600 Kerr-McGee Corporation 88
4,900 Oryx Energy Company<F130> 56
1,700 Pennzoil Company 64
8,800 Phillips Petroleum Company 284
3,800 Sun Company, Inc. 109
8,100 Unocal Corporation 213
-----
2,937
-----
OIL & GAS SERVICES 0.3%
8,700 Schlumberger, Ltd. 542
-----
OIL - INTERNATIONAL 5.5%
22,500 Chevron Corporation 1,052
42,700 Exxon Corporation 3,261
13,600 Mobil Corporation 1,370
18,600 Royal Dutch Petroleum Company 2,285
9,200 Texaco, Inc. 627
-----
8,595
-----
POLLUTION CONTROL 0.4%
7,100 Browning-Ferris Industries, Inc. 207
17,300 WMX Technologies, Inc. 487
-----
694
-----
PRINTING & PUBLISHING 0.2%
1,600 McGraw-Hill, Inc. 131
5,000 R.R. Donnelley & Sons Company 182
-----
313
-----
PRODUCTION 1.4%
1,200 Briggs & Stratton Corporation 48
6,800 Caterpillar, Inc. 382
1,400 Cincinnati Milacron, Inc. 36
4,200 Cooper Industries, Inc. 142
3,100 Deere & Company 277
4,400 Dover Corporation 174
1,400 FMC Corporation<F130> 100
1,600 Foster Wheeler Corporation 60
4,000 Illinois Tool Works, Inc. 233
3,800 Ingersoll-Rand Company 134
3,466 Pall Corporation 84
2,250 Parker-Hannifin Corporation 76
1,850 Raychem Corporation 86
1,300 Timken Company 52
2,500 Tyco International, Ltd. 152
13,100 Westinghouse Electric Corporation 185
-----
2,221
-----
RAILROADS 1.2%
5,281 Burlington Northern Santa Fe 443
2,600 Conrail, Inc. 179
3,560 CSX Corporation 298
4,500 Norfolk Southern Corporation 348
7,300 Union Pacific Corporation 477
3,500 Whitman Corporation 74
-----
1,819
-----
RETAIL 3.8%
8,600 Albertson's, Inc. 286
2,600 American Greetings Corporation 82
5,200 American Stores Company 155
3,300 Circuit City Stores, Inc. 110
2,500 Dayton Hudson Corporation 172
4,300 Dillard Department Stores,
Inc. - Class A 117
4,900 Gap, Inc. 193
2,500 Giant Food, Inc. 80
15,400 Kmart Corporation 125
3,800 Kroger Corporation<F130> 127
12,000 The Limited, Inc. 221
5,600 Lowe's Companies, Inc. 151
8,876 May Department Stores Company 348
900 Mercantile Stores Company, Inc. 40
2,800 Nordstrom, Inc. 104
8,300 J.C. Penney Company, Inc. 350
2,000 Pep Boys-Manny, Moe & Jack 44
3,100 Rite Aid Corporation 84
13,500 Sears Roebuck and Company 459
2,200 Supervalu, Inc. 68
2,600 Tandy Corporation 128
2,500 TJX Companies, Inc. 34
10,225 Toys `R'' Us, Inc. <F130> 224
8,900 Walgreen Company 254
79,700 Wal-Mart Stores, Inc. 1,724
2,700 Winn-Dixie Stores, Inc. 176
4,400 Woolworth Corporation 64
-----
5,920
-----
SAVINGS & LOAN 0.3%
6,100 Federal Home Loan Mortgage Corporation 422
1,700 Golden West Financial Corporation 85
-----
507
-----
SEMICONDUCTORS 0.4%
3,900 Advanced Micro Devices, Inc. <F130> 93
7,100 Micron Technology Incorporated 501
-----
594
-----
SOFTWARE 1.3%
20,100 Microsoft Corporation<F130> 2,010
-----
TELECOMMUNICATIONS 8.6%
16,900 Airtouch Communications, Inc. 482
6,500 Alltell Corporation 199
19,200 Ameritech Corporation 1,037
54,656 AT & T Corporation 3,498
15,200 Bell Atlantic Corporation 967
17,000 BellSouth Corp 1,301
2,500 Cabletron Systems<F130> 197
4,400 DSC Communications Corporation<F130> 163
33,200 GTE Corporation 1,370
23,900 MCI Communications Corporation 596
14,500 NYNEX Corporation 682
14,500 Pacific Telesis Group 440
21,000 SBC Communications, Inc. 1,173
12,000 Sprint Corporation 462
2,800 Tellabs, Inc. <F130> 95
16,553 US West, Inc. 788
------
13,450
------
TEXTILES & APPAREL 0.5%
2,500 Fruit of the Loom, Inc. <F130> 43
3,600 Liz Claiborne, Inc. 102
3,600 Melville Corporation 115
5,400 Nike, Inc. - Class B 306
2,600 Reebok International Ltd. 88
2,000 Russell Corporation 49
2,077 VF Corporation 99
-----
802
-----
TIRE & RUBBER 0.2%
3,200 Cooper Tire & Rubber Company 74
800 Goodrich (B.F.) Company 53
5,262 Goodyear Tire & Rubber Company 200
-----
327
-----
TRANSPORTATION 0.0%
2,000 Pittson Company 55
-----
TRANSPORTATION EQUIPMENT 0.0%
1,700 Cummins Engine Company, Inc. 60
-----
TRAVEL & RECREATION 1.0%
5,850 CUC International, Inc. <F130> 203
3,650 Harrahs Entertainment, Inc. <F130> 90
1,600 Hilton Hotels Corporation 107
4,900 Marriott International, Inc. 181
18,100 Walt Disney Company 1,043
-----
1,624
-----
TRUCKING 0.1%
1,300 Roadway Services, Inc. 58
3,450 Ryder System, Inc. 83
-----
141
-----
Total Common Stock
(Cost $101,960) 147,660
-------
PREFERRED STOCKS 0.0%
19 Teledyne Inc. Preferred Ser E -
------
Total Preferred Stock
(Cost $0) -
------
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
SHORT-TERM INVESTMENTS 5.7%
U.S. TREASURIES 0.2%
$ 330 U.S. Treasury Bill,
5.42%, 11/02/95 330
------
Total U.S. Treasuries
(Cost $330) 330
------
VARIABLE RATE DEMAND NOTES 5.5%
2,324 Eli Lilly Demand Note 2,324
4,174 Sara Lee Demand Note 4,174
2,058 Southwestern Bell Demand Note 2,058
-----
Total Variable Rate Demand Notes
(Cost $8,556) 8,556
-----
Total Short-Term Investments
(Cost $8,886) 8,886
-----
Total Investments 99.9%
(Cost $110,846) 156,546
-------
Other Assets, less Liabilities 0.1% 223
------
TOTAL NET ASSETS 100.0% 156,769
=======
<F130>Non-income producing
See notes to the financial statements.
MIDCORE GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 98.3%
AUTO PARTS 2.0%
72,900 AutoZone, Inc.<F131> 1,804
37,000 Lear Seating Corporation<F131> 1,027
-----
2,831
-----
BIO-TECHNOLOGY 0.8%
33,700 Millipore Corporation 1,192
-----
BUILDING MATERIALS 0.5%
18,000 Home Depot, Inc. 670
-----
BUSINESS SERVICES 9.8%
46,900 Ceridian Corporation<F131> 2,040
58,500 H & R Block, Inc. 2,413
86,815 First Data Corporation 5,741
77,900 General Motors Corporation - Class E 3,671
8,000 Reynolds & Reynolds - Class A 285
------
14,150
------
CAPITAL GOODS - MANUFACTURING 3.8%
20,000 Dover Corporation 790
78,000 Tyco International, Ltd. 4,739
-----
5,529
-----
COMMUNICATIONS & MEDIA 5.4%
28,000 Infinity Broadcasting Corporation<F131> 910
70,800 Interpublic Group of Companies, Inc. 2,744
125,000 PanAmSat Corporation<F131> 1,891
41,600 Reuters Holdings, PLC ADR 2,309
-----
7,854
-----
COMPUTERS 1.7%
89,200 Sungard Data Systems, Inc. <F131> 2,453
-----
CONSUMER PRODUCTS 1.3%
75,000 Newell Company 1,809
-----
DISTRIBUTION 3.9%
64,200 Alco Standard Corporation 5,682
DRUGS 2.6%
95,200 Elan Corporation, PLC ADR<F131> 3,820
-----
ELECTRICAL EQUIPMENT 4.5%
66,000 AVX Corporation 2,054
20,000 Kemet Corporation<F131> 690
80,093 Molex, Inc. - Class A 2,463
3,000 SGS-Thomson Microelectronics<F131> 136
31,000 Vishay Intertechnology, Inc. <F131> 1,093
-----
6,436
-----
ENERGY - NATURAL GAS 1.1%
46,000 Enron Corporation 1,581
-----
ENTERTAINMENT & LEISURE 5.5%
122,200 GTECH Holdings Corporation<F131> 2,994
74,000 Mirage Resorts, Inc. <F131> 2,423
49,735 Viacom, Inc. - Class B<F131> 2,487
-----
7,904
-----
FINANCE COMPANIES 3.1%
97,200 First USA, Inc. 4,471
-----
FINANCIAL SERVICES 5.8%
33,000 Federal National Mortgage Association 3,461
134,900 MBNA Corporation 4,974
-----
8,435
-----
HEALTH CARE SERVICES & SUPPLIES 12.8%
115,464 Columbia/HCA Healthcare Corporation 5,672
118,400 Foundation Health Corporation<F131> 5,017
73,700 Health Care & Retirement
Corporation<F131> 2,165
77,500 Lincare Holdings, Inc. <F131> 1,928
47,000 United Healthcare Corporation 2,497
45,000 Vencor, Inc. <F131> 1,249
------
18,528
------
HOSPITAL SUPPLIES & SERVICES 0.5%
18,000 Boston Scientific Corporation<F131> 758
-----
INSURANCE 5.8%
66,750 AFLAC, Inc. 2,720
48,800 MBIA, Inc. 3,398
39,000 MGIC Investment Corporation 2,218
-----
8,336
-----
LODGING 1.6%
25,000 La Quinta Inns, Inc. 644
78,000 Promus Hotel Corporation<F131> 1,716
-----
2,360
-----
MACHINERY - AUTOMOTIVE 1.7%
67,000 Varity Corporation<F131> 2,429
-----
MACHINERY - DIVERSIFIED 1.0%
32,400 York International Corporation 1,418
-----
MACHINERY - INDUSTRIAL 2.3%
71,400 Thermo Electron Corporation<F131> 3,284
-----
OFFICE PRODUCTS 1.3%
73,250 Staples, Inc. <F131> 1,950
-----
POLLUTION CONTROL 1.1%
55,000 Browning-Ferris Industries, Inc. 1,602
-----
RETAIL 3.2%
104,000 General Nutrition
Companies, Inc. <F131> 2,587
30,000 Kohl's Corporation<F131> 1,361
25,425 Lowe's Companies, Inc. 686
-----
4,634
-----
SEMICONDUCTORS 1.1%
32,700 LSI Logic Corporation<F131> 1,541
-----
SOFTWARE 3.9%
49,000 Bay Networks<F131> 3,246
9,000 Microsoft Corporation<F131> 900
80,200 Platinum Technology<F131> 1,464
-----
5,610
-----
TEXTILES & APPAREL 1.8%
25,100 Cintas Corporation 1,054
28,000 Nike, Inc. - Class B 1,589
-----
2,643
-----
TRANSPORTATION - RAILROAD 0.5%
9,000 Burlington Northern Santa Fe Company 755
-----
TRAVEL & RECREATION 5.2%
151,400 Carnival Corporation - Class A 3,520
116,350 CUC International, Inc. <F131> 4,029
-----
7,549
-----
UTILITIES - TELEPHONE 2.7%
31,500 DSC Communications Corporation<F131> 1,165
29,200 Frontier Corporation 788
60,000 WorldCom, Inc. <F131> 1,958
-----
3,911
-----
Total Common Stock
(Cost $107,302) 142,125
-------
Number
of Shares
(in thousands)
-------------
SHORT-TERM INVESTMENTS 1.8%
INVESTMENT COMPANIES 1.8%
10 Financial Square Prime Obligation Fund 10
2,527 Short-Term Investments Co.
Liquid Assets Portfolio 2,527
-----
Total Short-Term Investments
(Cost $2,537) 2,537
-----
Total Investments 100.1%
(Cost $109,839) 144,662
-------
Liabilities, less Other
Assets (0.1)% (129)
-----
TOTAL NET ASSETS 100.0% 144,533
=======
<F131>Non-income producing
See notes to the financial statements.
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market Value
of Shares (in thousands)
--------- -------------
COMMON STOCKS 89.5%
AIR TRANSPORTATION 0.4%
72,750 Comair Holdings, Inc. 2,041
-----
AUTO PARTS 0.9%
64,800 APS Holding Corporation<F132> 1,328
42,800 Copart, Inc. <F132> 974
88,300 Lear Seating Corporation<F132> 2,450
-----
4,752
-----
BIO-TECHNOLOGY 0.4%
209,300 Perseptive Biosystems, Inc. <F132> 2,224
-----
BUSINESS MACHINES & SOFTWARE 0.7%
9,900 Madge Networks N. V. 415
62,600 Mylex Corporation<F132> 1,166
31,400 National Instruments Corporation<F132> 589
43,400 Network General Corporation<F132> 1,801
-----
3,971
-----
BUSINESS SERVICES 6.1%
30,450 FIserv, Inc. <F132> 784
124,100 Franklin Quest Company<F132> 2,963
85,200 Interim Services, Inc. <F132> 2,535
98,500 Keane, Inc. <F132> 2,659
403,500 Manpower, Inc. 10,945
180,800 Medaphis Corporation<F132> 5,740
117,600 Robert Half International, Inc. <F132> 4,292
81,000 U.S. Delivery Systems, Inc. <F132> 1,681
-----
31,599
------
CHEMICALS 1.5%
283,500 Airgas, Inc. <F132> 7,548
-----
COMMUNICATIONS & MEDIA 0.4%
75,400 Cellstar Corporation<F132> 2,092
-----
COMPUTERS 0.6%
98,500 Danka Business Systems PLC ADR 3,300
-----
CONSUMER SERVICES 2.4%
316,100 Loewen Group, Inc. 12,659
------
CONTAINERS 0.8%
147,800 Sealed Air Corporation<F132> 3,898
-----
ELECTRICAL EQUIPMENT 0.9%
156,400 AVX Corporation 4,868
-----
ELECTRONICS 2.9%
218,200 Arrow Electronics, Inc. <F132> 11,074
21,100 Checkpoint Systems, Inc. <F132> 609
94,200 Digi International, Inc. <F132> 2,520
13,600 Progress Software Corporation<F132> 891
------
15,094
------
ENERGY - OIL & GAS 0.8%
182,300 NGC Corporation 1,641
48,400 Tejas Gas Corporation<F132> 2,269
-----
3,910
-----
ENTERTAINMENT & LEISURE 3.1%
174,700 Hollywood Entertainment Corporation 4,673
260,900 Mirage Resorts, Inc. <F132> 8,544
5,000 Movie Gallery, Inc. <F132> 193
72,950 Regal Cinemas, Inc. <F132> 2,863
-----
16,273
------
FINANCIAL SERVICES 4.8%
29,700 Advanta Corporation - Class B 1,062
96,700 AMBAC, Inc. 4,073
39,600 Green Tree Financial Corporation 1,054
72,900 National Data Corporation 1,932
174,636 Quick And Reilly Group, Inc. 4,148
555,100 The Charles Schwab Corporation 12,698
------
24,967
------
HEALTH CARE SERVICES & SUPPLIES 21.5%
105,700 American Medical Response, Inc. <F132> 3,052
482,300 Biomet, Inc. <F132> 8,018
173,556 Cardinal Health, Inc. 8,916
52,300 Cordis Corporation<F132> 5,779
546,975 Health Management Associates,
Inc. - Class A 11,760
238,000 Healthsource, Inc. <F132> 12,614
136,200 Medisense, Inc. <F132> 2,911
100,100 Medpartners, Inc. <F132> 2,803
108,800 Multicare Companies, Inc. <F132> 2,040
188,500 Oxford Health Plans<F132> 14,750
167,600 Pacificare Health Systems, Inc. <F132> 12,193
216,500 Quorum Health Group, Inc. <F132> 4,641
108,700 Renal Treatment Centers<F132> 3,913
343,300 Surgical Care Affiliates 10,170
321,500 Vencor, Inc. <F132> 8,922
-------
112,482
-------
HOSPITAL SUPPLIES & SERVICES 0.9%
20,400 Idexx Laboratories, Inc. 831
109,800 Omnicare, Inc. 3,980
-----
4,811
-----
HOUSING 3.6%
432,115 Clayton Homes, Inc. 11,343
88,700 Oakwood Homes Corp. 3,326
126,875 Southern Energy Homes, Inc. <F132> 1,871
125,300 Toll Brothers, Inc. <F132> 2,240
------
18,780
------
INSURANCE 5.8%
122,800 Equitable Iowa Companies 4,298
170,900 Arthur J. Gallagher & Company 6,046
157,700 MGIC Investment Corporation 8,969
289,300 Protective Life Corporation 8,245
68,000 Vesta Insurance Group, Inc. 2,745
------
30,303
------
LIQUOR 0.3%
27,500 Canandaigua Wine Company, Inc. <F132> 1,320
-----
MACHINERY - AUTOMOTIVE 1.3%
190,900 Varity Corporation<F132> 6,920
-----
MACHINERY - INDUSTRIAL 0.8%
198,500 TriMas Corporation 4,119
-----
OFFICE PRODUCTS 1.7%
126,375 Office Depot, Inc. <F132> 3,617
44,800 Officemax, Inc. <F132> 1,109
98,500 Viking Office Products, Inc. <F132> 4,383
-----
9,109
-----
PRINTING & PUBLISHING 0.5%
61,200 Banta Corporation 2,647
-----
RESTAURANTS 3.2%
158,450 Apple South, Inc. 3,248
31,200 DF & R Restaurants, Inc. <F132> 952
100,000 IHOP Corporation<F132> 2,150
37,700 Landrys Seafood
Restaurants Incorporated 509
107,400 Lone Star Steakhouse & Saloon<F132> 4,148
178,900 Outback Steakhouse, Inc. <F132> 5,613
------
16,620
------
RETAIL 8.5%
13,800 CompUSA, Inc. <F132> 528
388,000 Consolidated Stores Corporation<F132> 8,972
159,000 Dept 56, Inc. <F132> 7,215
53,600 Discount Auto Parts, Inc. <F132> 1,434
431,157 Dollar General Corporation 10,563
200,600 Kohl's Corporation<F132> 9,102
54,700 Micro Warehouse, Inc. <F132> 2,434
214,000 Musicland Stores Corporation<F132> 1,391
146,400 Sports and Recreation, Inc. <F132> 1,080
107,800 Trend Lines, Inc. - Class A<F132> 1,415
------
44,134
------
SEMICONDUCTORS 3.5%
131,700 Atmel Corporation 4,116
24,700 Burr-Brown Corporation 803
158,100 Dallas Semiconductor Corporation 3,360
65,400 Integrated Circuit Systems<F132> 887
22,600 Lattice Semiconductor Corporation<F132> 887
28,900 Linear Technology Corporation 1,264
37,600 Maxim Integrated Products<F132> 2,811
39,525 Microchip Technology, Inc. <F132> 1,569
14,500 SDL, Inc. <F132> 370
56,700 S3 Incorporated<F132> 971
39,500 Triquint Semiconductor, Inc. <F132> 899
11,100 VLSI Technology<F132> 261
------
18,198
------
SOFTWARE 1.7%
179,600 Compuware Corporation<F132> 4,086
32,000 McAfee Associates, Inc. <F132> 1,864
30,100 Parametric Technology Company<F132> 2,017
26,400 Softkey International, Inc. <F132> 832
------
8,799
------
TELECOMMUNICATIONS 3.5%
225,200 Aspect Telecommunications Corporation 7,741
224,100 Boston Technology, Inc. <F132> 3,081
99,100 Cidco, Inc. <F132> 2,936
43,900 Comverse Technology<F132> 999
71,900 Pairgain Technologies<F132> 3,074
4,700 U.S. Robotics Corporation<F132> 435
------
18,266
------
TEXTILES & APPAREL 2.7%
98,300 Gymboree Corporation<F132> 2,224
227,400 Jones Apparel Group, Inc. <F132> 7,788
72,200 The Men's Wearhouse, Inc. <F132> 2,816
36,300 Oakley Incorporated<F132> 1,252
------
14,080
------
TRANSPORTATION 1.3%
144,300 Arnold Industries, Inc. 2,345
81,228 Fritz Companies, Inc. 2,843
59,250 Heartland Express, Inc. <F132> 1,607
8,700 TNT Freightways Corporation 157
-----
6,952
-----
TRANSPORTATION EQUIPMENT 0.3%
53,150 Wabash National Corporation 1,349
-----
UTILITIES - TELEPHONE 1.7%
306,800 Century Telephone Enterprises 8,897
-----
Total Common Stock
(Cost $349,710) 466,982
-------
SHORT-TERM INVESTMENTS 8.4%
INVESTMENT COMPANIES 6.5%
9,878 Financial Square Prime Obligation Fund 9,878
23,835 Short-Term Investments Co.
Liquid Assets Portfolio 23,835
------
33,713
------
Principal
Amount
(in thousands)
- --------------
COMMERCIAL PAPER 1.9%
$10,000 ITT Hartford Group
5.78%, 11/17/95 9,974
-----
Total Short-Term Investments
(Cost $43,687) 43,687
------
Total Investments 97.9%
(Cost $393,397) 510,669
-------
Other Assets, less Liabilities 2.1% 10,828
------
TOTAL NET ASSETS 100.0% 521,497
=======
<F132>Non-income producing
See notes to the financial statements.
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
Number Market
of Shares Industry Value
- --------- -------- ------
COMMON AND PREFERRED STOCKS 96.7%
AUSTRALIA 2.6%
1,400 Aberfoyle Non-ferrous Metals $ 2,929
9,400 Amcor Limited Forest Products 70,361
4,323 Ampolex Ltd. Gas Exploration 8,550
4,200 Ashton Mining Ltd. Non-ferrous Metals 5,271
11,744 Australian National Industries Conglomerates 9,202
16,900 Boral Limited Construction Materials 40,367
3,300 Brambles Inds Ltd. Business Services 35,043
7,694 Burns Philp & Co. Retail Trade 17,207
2,700 Caltex Australia Petroleum Services 8,708
7,499 Coca-Cola Amatil Limited Food & Beverage 57,957
17,592 Coles Myer Limited Retail Trade 60,621
14,604 CSR Limited Conglomerates 46,547
4,228 Email Limited Household Appliances 10,613
4,654 FAI Insurances Insurance 2,089
50,000 Fosters Brewing Group Limited Food & Beverage 47,543
9,658 General Prop Trust Units Real Estate 16,604
14,200 Gold Mines Of Kalg Gold 11,342
433 Goldfields Limited<F133> Gold 1,070
17,810 Goodman Fielder Ltd. Food & Beverage 17,883
5,738 Hardie (James) Inds Construction Materials 9,384
4,500 ICI Australia Chemical 30,808
3,437 Lend Lease Corporation Limited Real Estate 47,740
23,722 MIM Holdings Limited Non-ferrous Metals 31,940
3,400 Newcrest Mining<F133> Gold 13,966
10,252 North Ltd. Non-ferrous Metals 28,855
2,125 OPSM Protector Ltd. Drugs & Healthcare 3,233
16,191 Pacific Dunlop Ltd. Conglomerates 39,166
13,600 Pioneer International Ltd. Construction Materials 33,312
9,664 QCT Resources Miscellaneous 12,497
3,029 Renison Goldfields
Consolidated Ltd. Gold 12,719
1,800 Rothmans Holdings Tobacco 6,709
7,990 Santos Ltd. Petroleum Services 21,577
6,323 Schroders Property Fund Mutual Fund 10,307
2,585 Smith (Howard) Conglomerates 11,405
8,463 Southcorp Holdings Ltd. Food & Beverage 18,219
4,786 Stockland Trust Group Real Estate 11,177
8,600 TNT<F133> Transportation 12,103
4,100 Tubemakers of Australia Industrial Machinery 9,980
14,680 Westfield Trust Real Estate 26,242
610 Westfield Trust New Units Real Estate 1,090
-------
862,336
-------
AUSTRIA 1.3%
100 Austrian Airlines<F133> Air Travel 16,397
300 BBAG Oesterr Brau Beverage & Tobacco 15,408
1,020 Creditanstalt Bank Bank 53,521
560 Creditanstalt Bank Preferred Bank 27,915
300 EA-Generali AG Insurance 82,037
100 Lenzing AG Chemicals 8,416
1,100 Oester Elektrizita Electric Utilities 67,153
957 OMV AG<F133> Miscellaneous 82,565
400 Veitsch-Radex AG<F133> Non-ferrous Metals 8,960
300 Wienerberger Baust Construction Materials 60,241
300 Z Laenderbank Bank
Austria AG Preferred Bank 13,925
-------
436,538
-------
BELGIUM 1.7%
30 Bekaert SA Industrial Machinery 22,001
50 CBR Cimenteries Construction Materials 20,362
710 Delhaize Le Lion Retail Trade 27,443
150 Electrabel Electronics 34,011
490 Fortis AG Insurance 52,515
215 Generale De Banque Banks 69,451
5 Generale De Banque VVPR Banks 1,615
375 Gevaert Chemicals 21,872
102 Glaverbel Groupe Containers & Glass 11,564
2 Glaverbel Groupe VVPR Containers & Glass -
320 GPE Bruxelles LAM Conglomerates 41,966
180 Kredietbank Banks 45,099
25 Kredietbank VVPR Banks 6,341
205 Royale Belge Insurance 37,001
25 Royale Belge BBPR Insurance 4,555
125 Solvay Chemicals 63,199
175 Tractebelinv Intl Conglomerates 64,019
25 Tractebelinv Intl VVPR Conglomerates 9,145
350 Union Miniere<F133> Non-ferrous Metals 22,769
-------
554,928
-------
DENMARK 1.2%
400 Carlsberg A Food & Beverage 20,708
325 Carlsberg B Food & Beverage 16,825
2 D/S 1912 B Conglomerates 39,148
2 D/S Svendborg B Conglomerates 56,160
625 Danisco Food & Beverage 28,469
90 Danske Luftfartsel DDL<F133> Air Travel 7,491
595 Den Danske Bank Banks 39,402
105 FLS Industries B Industrial Machinery 9,642
65 GN Store Nord Telecommunications 4,816
335 ISS International Service
System Series B Conglomerates 6,864
135 Korn-Og Foderstof Food & Beverage 6,174
30 Lauritzen (J) Holding B<F133> Conglomerates 4,939
85 NKT Holding Electrical Equipment 4,774
425 Novo Nordisk As B Drugs & Healthcare 54,034
240 OK Ostasiatiske Kompagni<F133> Conglomerates 6,190
115 Radio Meter As B Drugs & Healthcare 7,026
65 Sophus Berendsen A Conglomerates 7,075
200 Sophus Berendsen B Conglomerates 21,915
70 Superfos A/S Chemicals 6,210
600 Unidanmark A Banks 27,550
-------
375,412
-------
FINLAND 0.8%
400 Amer Group Conglomerate 6,329
300 Cultor Oy Series 1 Household Products 12,291
300 Instrumentarium Series A Drugs & Healthcare 7,417
7,860 Kansallis-Yhtymai<F133> Banks 6,292
1,500 Kesko Retail 18,789
100 Kone Corp B Industrial Machinery 9,112
1,400 Kymmene Corp. Forest Products 38,238
200 Metra AB A Conglomerates 8,759
200 Metra AB B Conglomerates 8,665
2,100 Outokumpu Oy A Non-ferrous Metals 33,376
400 Pohjola A Insurance 5,698
300 Pohjola B Insurance 4,379
2,600 Repola Forest Products 50,321
300 Sampo (Vakuutusosak) A Insurance 16,600
100 Stockmann AB (OY) Retail 5,886
9,500 Unitas Series A<F133> Banks 23,039
-------
255,191
-------
FRANCE 10.5%
935 Accor Leisure 111,025
900 Bic Toys, Amusements &
Sporting Goods 85,348
50 Bongrain SA Food & Beverage 26,436
774 Bouygues Home Builders 82,258
650 Canal Plus Broadcasting 112,254
2,750 Carnaudmetalbox Containers & Glass 115,218
2,036 Casino Guich Perr Leisure 58,256
568 Casino Guich Perr Preferred Leisure 11,667
275 Chargeurs Conglomerates 56,541
100 Cie Gen Geophysique<F133> Petroleum Services 3,577
350 Club Mediterranee<F133> Leisure 27,433
908 Compagnie Bancaire Financial Services 94,087
160 Comptoirs Modernes Retail 51,340
315 CPR Cie Par Reesco Investment Companies 24,206
1,251 Credit Foncier de France<F133> Banks 23,139
426 Credit National Banks 26,032
200 Dollfus-Mieg DMC Apparel & Textiles 8,539
450 Docks de France Retail 68,426
340 Ecco Ste Business Services 52,672
850 Eridania Beghin-Say Household Products 142,799
300 Essilor International Drugs & Healthcare 55,489
125 Eurafrance Financial Services 41,770
57 Europe 1 Registered Broadcasting 11,824
400 Finextel Financial Services 5,085
302 GTM Entrepose Home Builders 19,566
1,673 Havas Business Services 115,912
504 Imetal Non-ferrous Metals 59,332
2,850 Lagardere Groupe Publishing 53,180
920 Legrand Electical Equipment 153,807
3,600 Michelin (CGDE) Class B Tires & Rubber 145,313
966 Moulinex<F133> Household Products 19,239
500 Nord-Est Steel 11,292
1,885 Pernod-Ricard Food & Beverage 114,535
730 Pinault-Printemps-Redoute Retail 158,147
600 Promodes Retail 146,048
100 Sagem Electronics 55,591
250 Saint Louis Food & Beverage 71,839
50 Salomon SA Toys, Amusements &
Sporting Goods 28,838
3,413 Sanofi Drugs & Healthcare 217,563
4,250 Schneider SA (Ex Spep) Industrial Machinery 163,819
600 Sefimeg Real Estate 39,731
1,700 Seita Beverages & Tobacco 59,065
574 Simco Real Estate 46,157
10 Skis Rossignol Toys, Amusements &
Sporting Goods 2,665
216 Sodexho Leisure 55,932
50 Sommer Allibert Construction Materials 13,213
420 Sovac Financial Services 52,190
3,862 Thomson - CSF<F133> Aerospace 80,430
300 Unibail SA Financial Services 27,622
256 Union Immobiliere France Real Estate 21,441
8,050 Usinor Sacilor<F133> Steel 120,103
2,150 Valeo Industrial Machinery 97,066
---------
3,445,057
---------
GERMANY 15.5%
3,000 Agiv AG Construction & Mining 63,055
50 Amb Aach & Mun Bet Insurance 31,953
300 Amb Aach & Mun Bet Registered Insurance 201,307
300 Asko Deut Kaufhaus Retail Trade 155,720
300 Beiersdorf AG Series ABC Drugs & Healthcare 201,307
250 Bilfinger & Berger Home Builders 91,955
321 Brau Und Brunnen Food & Beverage 54,476
950 Bremer Vulkan Verbund<F133> Industrial Machinery 29,546
210 CKAG Colonia Konzern AG Insurance 164,028
50 CKAG Colonia Konzern
AG Non-Voting Preferred Insurance 29,042
6,550 Continental AG Industrial Machinery 92,555
650 Degussa AG Chemicals 209,082
100 DLW AG Construction Materials 18,817
2,200 Douglas Holding AG Retail Trade 80,452
102 Dyckerhoff AG Construction Materials 44,905
102 Dyckerhoff AG Non-Voting
Preferred Construction Materials 24,915
200 Fag Kugelfischer<F133> Industrial Machinery 26,912
330 Heidelberg Zement Construction Materials 206,206
150 Herlitz AG Business Services 27,693
100 Herlitz AG Non-Voting
Preferred Business Services 17,574
541 Hochtief AG Construction Materials 210,131
62 Holsten Brauerei AG Food & Beverage 13,648
150 Iwka AG Industrial Machinery 27,746
650 Karstadt AG Retail Trade 283,391
550 Kaufhof Holding AG Retail Trade 188,241
150 Kaufhof Holding AG Non-Voting
Preferred Retail Trade 40,048
4,200 Klockner Humboldt-Deutz<F133> Industrial Machinery 27,795
630 Linde AG Industrial Machinery 386,956
150 Linotype-Hell AG<F133> Computers & Business Equipment 18,959
2,637 Lufthansa AG<F133> Air Travel 366,630
150 Lufthansa AG Non-Voting
Preferred<F133> Air Travel 19,172
800 Man AG Industrial Machinery 231,769
300 Man AG Non-Voting Preferred Industrial Machinery 68,061
50 Munchener Ruck Nam Insurance 88,404
1,150 Preussag AG Conglomerates 326,635
500 PWA Papierwerke Waldhof<F133> Forest Products 79,884
100 Rheinmetall Berlin Aerospace 14,343
1,450 RWE AG Non-Voting Preferred Electic Utilities 410,814
150 Salamander AG Apparel & Textiles 26,628
5,100 Schering AG Drugs & Healthcare 355,620
150 Strabag AG Home Builders 25,030
500 Volkswagen AG Non-Voting
Preferred Automobiles 113,967
---------
5,095,372
---------
GREAT BRITAIN 7.9%
2,500 Amec Home Builders 2,268
3,500 Anglian Water Business Services 31,063
3,700 Argos Retail 29,831
334 Argyll Group Retail 1,694
10,200 Arjo Wiggins Appleton Forest Products 37,659
5,600 Associated British Foods Food & Beverage 62,158
2,200 Barratt Developments Home Builders 6,734
4,900 BBA Group<F133> Industrial Machinery 20,797
11,400 BET Conglomerates 22,663
4,419 BICC Electrical Equipment 18,372
9,100 Blue Circle Industries Construction Materials 41,781
2,343 Bowthorpe Electronics 15,878
6,000 BPB Industries Construction Materials 26,365
5,300 British Aerospace Aerospace 59,288
4,600 British Land Co. Real Estate 26,346
25,100 British Steel Steel 64,651
2,500 Burmah Castrol PLC Petroleum Services 38,853
2,100 Calor Group Gas & Pipeline Utilities 8,499
7,400 Caradon PLC Containers & Glass 23,118
2,900 Carlton Communications Broadcasting 44,086
3,400 Chubb Security Business Services 17,837
8,709 Coats Viyella Apparel & Textiles 25,695
800 Cobham PLC Aerospace 4,986
340 Costain Group<F133> Home Builders 392
5,000 Courtaulds PLC Chemicals 30,530
1,200 Courtaulds Textile Apparel & Textiles 7,772
2,430 Dawson International Apparel & Textiles 4,562
2,739 De La Rue Business Services 38,959
1,800 Delta Electrical Equipment 11,956
2,336 East Midlands Electricity Electric Utilities 32,010
3,000 Eastern Group Electric Utilities 46,056
5,070 Electrocomponents Electronics 25,918
3,812 English China Clays Mining 20,540
6,840 FKI Electrical Equipment 17,537
11,700 Forte Leisure 46,519
5,600 General Accident Insurance 57,122
4,300 GKN Industrial Machinery 54,751
3,900 Great Portland Estates Real Estate 9,968
10,831 Guardian Royal Exchange Insurance 39,134
3,568 Hammerson PLC Real Estate 18,380
8,815 Harrison & Crosfield Miscellaneous 20,167
2,800 Hepworth Construction Materials 12,745
4,300 IMI Non-ferrous Metals 22,321
2,700 Johnson Matthey Conglomerates 25,816
14,497 Ladbroke Group Hotels & Restaurants 37,969
1,133 Laing (John) Home Builders 3,986
1,700 Laird Group Industrial Machinery 11,171
12,000 Lasmo Gas Exploration 29,157
6,084 Legal & General GR Insurance 65,611
1,400 Lex Service Business Services 7,289
2,500 London Electricity Electric Utilities 35,579
9,600 Lonrho Conglomerates 23,705
9,906 Lucas Industries Industrial Machinery 29,931
1,400 Manweb Electric Utilities 22,199
3,733 Marley Home Builders 6,332
5,100 MEPC Real Estate 30,256
2,212 Mercury Asset Management Gp Financial Services 32,231
1,534 Meyer International Forest Products 8,471
4,700 Next Retail 30,589
5,063 North West Water Group Business Services 47,491
1,257 North West Water Group
(Registered) Business Services 3,570
1,238 Northern Electric Electric Utilities 17,336
1,400 Northern Electric Preferred Electric Utilities 2,181
1,900 Ocean Group Trucking & Freight Forwarding 11,032
500 Oxford Instruments Electronics 3,353
9,900 Pilkington Containers & Glass 29,522
1,600 Provident Financial Financial Services 19,413
3,400 Racal Electronics Electonics 13,545
6,468 Redland Construction Materials 35,565
6,200 Rexam Construction Materials 39,618
3,100 RMC Group Construction Materials 49,977
18,032 Rolls Royce Automobiles 43,814
8,100 Royal Insurance Holdings Insurance 49,906
7,700 Rugby Group Construction Materials 12,999
2,400 Schroders Financial Services 50,969
7,600 Scottish & Newcastle Food & Beverage 70,328
18,800 Sears PLC Retail 30,107
6,400 Sedgwick Group Insurance 10,704
3,000 Seeboard Electric Utilities 24,542
4,700 Slough Estates Real Estate 14,535
3,700 Smiths Industries Industrial Machinery 33,859
3,400 Southern Electric Electric Utilities 51,097
2,060 Southern Water Electric Utilities 22,118
3,300 St. James' Place Capital Financial Services 6,092
6,235 T & N Industrial Machinery 14,117
11,043 Tarmac Construction Materials 14,984
4,951 Tate & Lyle Food & Beverage 35,074
4,700 Taylor Woodrow Home Builders 7,898
5,000 Thames Water Business Services 41,535
5,832 TI Group Conglomerates 39,889
13,000 Trafalgar House Conglomerates 4,666
1,800 Transport Development Railroads & Equipment 5,495
2,900 Unigate Food & Beverage 19,172
6,600 United Biscuits Food & Beverage 28,481
4,000 Vickers Industrial Machinery 15,841
1,516 Welsh Water Business Services 17,999
1,530 Welsh Water Preferred Business Services 2,505
7,200 Williams Holdings Construction Materials 35,614
5,100 Willis Corroon Group Insurance 10,139
2,300 Wilson (Connoly) Holdings Home Builders 5,171
4,400 Wimpey (George) Home Builders 7,081
6,900 Wolseley Construction Materials 42,676
---------
2,590,263
---------
HONG KONG 1.0%
10,000 Applied International Holdings Electonics 931
8,200 Bank Of East Asia Banks 28,900
27,000 Cathay Pacific Airways Air Travel 39,810
16,000 Chinese Estates Real Estate 11,692
6,000 Dickson Concepts International Retail 4,346
6,000 Giordano International Retail 4,966
13,000 Hang Lung Development Co. Real Estate 21,606
1,600 Hongkong Aircraft Haeco Aerospace 4,118
23,200 Hongkong & China Gas Electric Utilities 37,657
9,500 Hongkong & Shangai Hotel Conglomerates 11,918
41,000 Hopewell Holdings Real Estate 25,851
9,000 Hysan Development Real Estate 22,931
3,500 Johnson Electric Holdings Electrical Equipment 7,311
4,000 Kumagai Gumi (HK) Home Builders 3,026
2,000 Lai Sun Garment International Apparel & Textiles 2,108
5,000 Miramar Hotel & Invest. Hotels & Restaurants 10,573
12,000 Oriental Press Group Publishing 4,928
6,000 Peregrine Investments<F133> Real Estate 7,644
26,000 Regal Hotels International Hotels & Restaurants 4,876
14,000 Shangri-La Asia Leisure 15,482
14,000 Shun Tak Holdings Aerospace 11,045
9,000 Stelux Holdings International Conglomerates 2,328
14,000 South China Morning Post Broadcasting 8,148
5,300 Tai Cheung Holdings Real Estate 4,456
4,000 Television Broadcasts Broadcasting 16,038
1,460 Wing Lung Bank Banks 8,082
2,500 Winsor Industrial Corp. Apparel & Textiles 2,247
-------
323,018
-------
IRELAND 0.4%
6,200 Allied Irish Banks Banks 31,296
3,300 CRH Construction Materials 21,783
2,600 Fyffes Food & Beverage 4,322
805 Greencore Group Food & Beverage 6,447
1,100 Independent News PLC Newspapers 6,585
2,900 Irish Life Insurance 10,674
1,500 Kerry Group A Food & Beverage 11,649
9,840 Smurfit (Jefferson) Paper 26,108
6,700 Waterford Wedgewood Toys, Amusements &
Sporting Goods 6,070
1,645 Woodchester Investments Financial Services 4,471
129,405
ITALY 7.7%
7,000 Arn Mondadori Edit Broadcasting, Advertising &
Publishing 51,814
83,500 Banca Commerciale Italiana Banks 162,637
17,500 Banca Naz Agricolt<F133> Banks 12,844
10,000 Banca Naz Agricolt Priv<F133> Banks 3,852
8,000 Banca Naz Agricolt,
Non-Convertible
Preferred<F133> Banks 2,961
1,500 Banca Naz Agricoltura<F133> Agricultural Machinery 555
11,000 Banca Popolare Milano<F133> Banks 44,851
24,000 Banco Ambros Veneto<F133> Banks 62,478
11,000 Banco Ambros Veneto,
Non-Convertible Preferred Banks 13,490
9,000 Benetton Group Apparel & Textiles 93,125
6,600 Cartiere Burgo Forest Products 37,530
15,500 Cementir Construction Materials 12,902
118,000 Credito Italiano Ord Banks 134,051
2,000 Danieli Industrial Machinery 10,902
2,000 Danieli, Non-Convertible
Preferred Industrial Machinery 5,520
34,000 Edison Ord Electric Utilities 136,499
17,500 Fidis Conglomerates 31,835
32,000 IMI Istituto Mobiliare Banks 174,839
29,000 Impregilo Ord<F133> Home Builders 25,195
39,000 Ist Bc S.Paolo (To) Banks 215,287
8,200 Italcementi Construction Materials 50,667
4,000 Italcementi, Non-Convertible
Preferred Construction Materials 11,643
35,000 Italgas Gas & Pipeline Utilities 93,090
3,000 La Previdente Insurance 20,644
21,000 Magneti Marelli Industrial Machinery 40,178
3,000 Marzotto & Figli Apparel & Textiles 19,101
25,000 Mediobanca Banks 167,017
282,000 Montedison<F133> Conglomerates 194,233
36,000 Montedison, Non-Convertible
Preferred<F133> Conglomerates 21,115
63,000 Olivetti<F133> Computers & Business Equipment 47,028
4,500 Olivetti, Non-Convertible
Preferred<F133> Computers & Business Equipment 2,484
1,000 Olivetti, Priv<F133> Computers & Business Equipment 1,004
58,000 Parmalat Finanziaria Food & Beverage 45,843
75,000 Pirelli Spa Industrial Machinery 96,917
4,000 Pirelli Spa, Non-Convertible
Preferred Industrial Machinery 4,065
14,220 Ras Insurance 142,722
5,780 Ras, Non-Convertible Preferred Insurance 31,889
8,000 Rinascente Retail 47,423
2,000 Rinascente, Non-Convertible
Preferred Retail 5,608
2,000 Rinascente, Priv Retail 5,332
3,000 Sai, Non-Convertible Preferred Insurance 12,703
6,000 Sai Ord Insurance 61,048
20,000 Saipem Petroleum 44,161
4,333 Sasib Industrial Machinery 19,190
3,000 Sasib, Non-Convertible
Preferred Industrial Machinery 7,433
11,000 Sirti Home Builders 67,001
34,000 SNIA BPD<F133> Conglomerates 33,208
2,000 SNIA BPD, Non-Convertible
Preferred Conglomerates 1,204
---------
2,527,118
---------
JAPAN 34.0%
9,000 77th Bank Banks 83,623
2,000 Advantest Corp. Electronics 113,453
2,000 Aida Engineering Industrial Machinery 14,045
4,000 Alps Electric Co. <F133> Electronics 41,078
7,000 Amada Co. Industrial Machinery 69,832
2,000 Amano Corporation Pollution Control 24,255
10,000 Aoki Corp. Home Builders 39,611
2,000 Aoyama Trading Co. Conglomerates 53,988
1,300 Arabian Oil Co. International Oil 49,841
11,000 Asahi Breweries Food & Beverage 119,419
3,000 Asahi Optical Co. <F133> Toys, Amusement &
Sporting Goods 10,944
15,000 Ashikaga Bank Banks 88,904
5,000 Asics Corp. <F133> Apparel & Textiles 13,448
6,000 Banyu Pharmaceutical Co. Drugs & Healthcare 63,377
6,000 Brother Industries Household Appliances &
Furnishings 30,104
7,000 Casio Computer Co. Toys, Amusement &
Sporting Goods 61,274
14,000 Chichibu Onoda Cement Construction Materials 70,517
5,000 Chiyoda Corp. Industrial Machinery 46,506
6,000 Chugai Pharmaceutical Co. Drugs & Healthcare 54,810
8,000 Citizen Watch Co., Ltd. Retail 54,849
15,000 Cosmo Oil Company International Oil 73,353
3,100 Credit Saison Co. Financial Services 65,187
2,000 CSK Corporation Business Services 56,726
9,000 Daicel Chemical Ind. Chemicals 47,269
10,000 Daido Steel Company Steel 44,501
3,000 Daifuku Co. Industrial Machinery 35,796
7,000 Daiichi Pharmaceutical Co. Drugs & Healthcare 97,902
6,000 Daikin Industries Industrial Machinery 47,826
5,000 Daikyo Inc. Real Estate 33,400
7,000 Daimaru Inc. Apparel & Textiles 44,501
20,000 Dainippon Ink Chemicals 85,090
5,000 Dainippon Screen Mfg. Co.<F133> Electonics 44,697
6,000 Daishowa Paper Mfg. Co.<F133> Paper 44,071
3,000 Daito Trust Construction Construction & Mining 26,407
4,000 Daiwa Kosho Lease Co. Real Estate 35,992
11,000 Denki Kagaku Kogyo K.K. Chemicals 37,009
7,000 Ebara Corp. Industrial Machinery 97,217
7,000 Eisai Co. Drugs & Healthcare 118,441
3,000 Ezaki Glico Co. Food & Beverage 24,793
8,000 Fujikura Industrial Machinery 50,624
12,000 Fujita Corp. Home Builders 54,575
3,000 Fujita Kanko Inc. Leisure 63,671
16,000 Furukawa Electric Co. Electrical Equipment 71,827
3,000 Gakken Co. <F133> Broadcasting 16,578
5,000 Gunze Limited Apparel & Textiles 27,874
5,000 Hankyu Deptartment Stores Retail 61,617
10,000 Haseko Corp. Home Builders 35,601
8,000 Hazama Corp. Home Builders 31,610
6,000 Higo Bank Banks 45,831
1,050 Hirose Electric Co. Electronics 67,060
9,000 Hokkaido Bank Banks 26,847
17,000 Hokuriku Bank Banks 99,760
9,000 Honshu Paper Co. Paper 51,230
3,000 House Food Corp. Food & Beverage 54,575
3,000 Hoya Corp. Drugs & Healthcare 88,024
6,000 Inax Corporation Construction Materials 54,105
5,000 Isetan Co. Retail 66,507
8,000 Ishihara Sangyo Kaisha<F133> Industrial Machinery 23,786
6,000 Itoham Foods Inc. Food & Beverage 43,953
6,000 Iwatani International Electric Utilities 28,109
4,000 Jaccs Co. Financial Services 36,461
27,000 Japan Energy Corp. Miscellaneous 77,373
3,000 Japan Metal & Chemicals<F133> Chemicals 15,551
9,000 Japan Steel Works Steel 21,830
2,000 Jeol<F133> Electronics 15,746
4,000 JGC Corp. Electronics 43,425
2,000 Kaken Pharmaceutical Co. Drugs & Healthcare 16,353
6,000 Kamigumi Co. Business Services 54,281
5,000 Kandenko Co. Home Builders 61,617
12,000 Kanebo<F133> Apparel & Textiles 23,708
9,000 Kaneka Corp. Chemicals 56,335
7,000 Kansai Paint Co. Chemicals 30,398
2,000 Katokichi Co. Food & Beverage 36,579
14,000 Kawasaki Kisen Kaisha<F133> Trucking & Freight Forwarding 37,518
12,000 Keihin Electric Express Railroads & Equipment 70,419
5,000 Kikkoman Corp. Food & Beverage 35,699
6,000 Kinden Corporation Home Builders 103,281
1,000 Kissei Pharmaceutical Co. Drugs & Healthcare 28,950
3,000 Kokuyo Co. Business Services 64,551
2,000 Komori Corporation Industrial Machinery 47,337
1,000 Konami Co. Business Services 22,495
9,000 Konica Corporation Photography 60,296
5,000 Koyo Seiko Co. Industrial Machinery 39,855
17,000 Kumagai Gumi Co. Construction Materials 65,177
6,000 Kurabo Industries Apparel & Textiles 20,422
8,000 Kuraray Co. Chemicals 79,026
5,000 Kureha Chemical Ind Co. Chemicals 19,659
3,000 Kurita Water Industries Business Services 83,623
11,000 Kyowa Hakko Kogyo Co. Drugs & Healthcare 102,098
2,000 Kyudenko Corp. Electrical Equipment 26,994
7,000 Lion Corp. Drugs & Healthcare 38,887
3,000 Maeda Road Construction Construction Materials 53,695
2,000 Makino Milling Machine<F133> Industrial Machinery 16,764
4,000 Makita Corp. Electrical Equipment 62,204
3,000 Marudai Food Co. Food & Beverage 20,245
7,000 Maruha Corp. <F133> Food & Beverage 20,539
7,000 Meiji Milk Products Co. Food & Beverage 38,134
9,000 Meiji Seika Kaisha Food & Beverage 49,205
10,000 Minebea Co. Industrial Machinery 81,178
3,000 Misawa Homes Co. Home Builders 23,356
12,000 Mitsubishi Gas Chemical Chemicals 52,345
11,000 Mitsubishi Oil Co. International Oil 87,359
8,000 Mitsubishi Paper Mills Paper 48,667
3,000 Mitsubishi Steel Mfg.<F133> Steel 15,052
4,000 Mitsubishi Warehouse Business Services 55,162
20,000 Mitsui Engineering &
Shipbuilding<F133> Industrial Machinery 43,816
12,000 Mitsui Mining & Smelting<F133> Mining 39,904
27,000 Mitsui Osk Lines<F133> Trucking & Freight Forwarding 70,771
3,000 Mitsui-Soko Co. Trucking & Freight Forwarding 19,864
19,000 Mitsui Toatsu Chemicals Chemicals 70,057
12,000 Mitsukoshi Retail 95,183
4,000 Mochida Pharmaceutical Drugs & Healthcare 51,641
2,000 Mori Seiki Co. Industrial Machinery 39,513
4,000 Nagase & Co. Chemicals 31,689
19,000 Nagoya Railroad Co. Railroads & Equipment 89,383
11,000 Nankai Electric Railway Railroads & Equipment 71,651
9,000 NGK Insulators Electrical Equipment 82,918
5,000 NGK Spark Plug Co. Industrial Machinery 68,463
11,000 Nichido Fire & Marine Insurance 82,302
7,000 Nichii Co. Retail 82,156
8,000 Nichirei Corp. <F133> Household Products 45,694
8,000 Nihon Cement Co. Construction Materials 49,215
8,000 Niigata Engineering Co. Industrial Machinery 24,255
3,000 Nippon Beet Sugar Mfg. Co. Food & Beverage 11,737
3,000 Nippon Comsys Corp. Computers & Business Equipment 31,689
3,000 Nippon Denko Co. Steel 10,181
14,000 Nippon Fire & Marine Insurance 75,309
13,000 Nippon Light Metal Co. Non-ferrous Metals 70,439
6,000 Nippon Meat Packers Food & Beverage 81,569
4,000 Nippon Sharyo Industrial Machinery 32,706
11,000 Nippon Sheet Glass Co. Containers & Glass 47,660
8,000 Nippon Shinpan Co. Financial Services 49,998
5,000 Nippon Shokubai Co. Chemicals 43,621
7,000 Nippon Suisan Kaisha<F133> Food & Beverage 28,412
7,000 Nishimatsu Construction Construction & Mining Equipment 78,732
6,000 Nisshinbo Industries Apparel & Textiles 53,284
3,000 Nissin Food Products Co. Food & Beverage 67,485
4,000 Nitto Denko Corp. Electronics 63,768
5,000 NOF Corp. Chemicals 25,429
4,000 Noritake Co. Toys, Amusement &
Sporting Goods 27,776
14,000 NSK Industrial Machinery 83,936
11,000 NTN Corp. Industrial Machinery 67,240
18,000 Obayashi Corp. Home Builders 133,972
4,000 Okamoto Industries Tires & Rubber 23,864
3,000 Okuma Corp. <F133> Industrial Machinery 22,153
6,000 Okumura Corp. Home Builders 52,462
7,000 Olympus Optical Co. Photography 65,382
7,000 Omron Corp. Electrical Equipment 163,627
4,000 Onward Kashiyama Co. Apparel & Textiles 55,162
8,000 Orient Corp. Financial Services 36,305
2,000 Orix Corp. Financial Services 70,419
9,000 Penta-Ocean Construction Home Builders 63,905
5,000 Pioneer Electronic Corp. Household Appliances &
Furnishings 76,776
4,000 Q.P. Corp. Conglomerates 32,080
7,000 Renown Apparel & Textiles 19,101
3,000 Rohm Co. <F133> Electronics 182,209
10,000 Sagami Railway Co. Railroads & Equipment 40,491
3,000 Sanden Corp. Electrical Equipment 17,018
6,000 Sankyo Aluminum Ind. Co. Aluminum 31,278
2,000 Sanrio Co. Retail 19,952
6,000 Sanwa Shutter Corp. Construction Materials 40,784
8,000 Sapporo Breweries Food & Beverage 68,385
3,000 Seiko Corporation Retail 20,510
4,000 Seino Transportation Co. Railroads & Equipment 61,812
6,000 Seiyu Apparel & Textiles 69,832
6,000 Settsu Corp. <F133> Paper 16,725
1,000 Shimachu Co. Retail 26,407
3,000 Shimano Inc. Leisure 55,748
9,000 Shionogi & Co. Drugs & Healthcare 75,348
10,000 Shiseido Co. Drugs & Healthcare 100,738
2,000 Shochiku Co. Leisure 20,148
3,000 Shokusan Jutaku Sogo Co. <F133> Construction Materials 9,477
26,000 Showa Denko K.K. <F133> Chemicals 76,287
3,000 Skylark Co. Hotels & Restaurants 46,653
8,000 Snow Brand Milk Food & Beverage 52,423
4,000 Sumitomo Forestry Co. Forest Products 56,335
14,000 Sumitomo Heavy Ind. Industrial Machinery 39,024
14,000 Sumitomo Metal Mining Co. Non-ferrous Metals 110,499
11,000 Sumitomo Osaka Cement Co. Construction Materials 44,432
3,000 Taiyo Uden Co. Electronics 29,928
5,000 Takara Shuzo Co. Household Products 43,816
3,000 Takara Standard Co. Food & Beverage 30,808
7,000 Takashimaya Co. Retail 97,217
2,000 Takuma Co. Telecommunication Services 25,429
6,000 Tanabe Seiyaku Co. Drugs & Healthcare 39,317
24,000 Teijin Chemicals 110,089
6,000 Teikoku Oil Co. International Oil 34,623
5,000 Toa Corporation Home Builders 33,938
440 Toho Co. Leisure 61,969
4,000 Tokyo Broadcasting Broadcasting 58,683
4,000 Tokyo Dome Corp. Leisure 60,639
4,000 Tokyo Electronic Power Co. Electronics 173,700
3,000 Tokyo Style Co. Apparel & Textiles 45,479
5,000 Tokyo Tatemono Co. Real Estate 20,148
7,000 Tokyotokeiba Co. Leisure 24,510
14,000 Tosoh Corp. <F133> Chemicals 61,480
5,000 Toyo Engineering Electronics 27,385
1,000 Toyo Exterior Co. Home Builders 20,930
3,000 Toyo Kanetsu K.K. Petroleum Services 12,059
17,000 Toyobo Co. Apparel & Textiles 55,866
7,000 Toyoda Automatic Loom Industrial Machinery 109,541
4,000 Tsubakimoto Chain Co. Industrial Machinery 18,778
2,000 Tsugami Corp. Industrial Machinery 10,074
21,000 Ube Industries<F133> Chemicals 69,421
2,000 Uni-Charm Corp. Household Products 44,990
1,000 Uniden Corp. Household Products 16,138
12,000 Unitika<F133> Chemicals 29,576
5,000 Yamaguchi Bank Banks 82,645
5,000 Yamaha Corp. Toys, Amusement &
Sporting Goods 79,711
9,000 Yamato Transport Co. Trucking & Freight Forwarding 96,826
6,000 Yamazaki Baking Co. Food & Beverage 106,215
6,000 Yokogawa Electric Corp. Electronics 45,772
----------
11,172,538
----------
MALAYSIA 0.5%
1,000 AMMB Holdings Financial Services 12,387
1,800 Amsteel Corp. Steel 1,254
100 Amsteel Corp. Rights to
Chocolate Products,
Expire 11/1/95 Steel -
200 Amsteel Corp. Rights to
Common Shares,
Expire 11/1/95 Steel -
333 Amsteel Corp. Warrants,
Expire 11/1/95 Steel 45
1,000 Aokam Perdana Paper 1,675
1,500 Berjaya Group Leisure 950
1,000 Berjaya Leisure Leisure 759
1,000 Commerce Asset-Holding Financial Services 4,955
2,000 DCB Holdings Financial Services 5,663
1,000 Edaran Otomobil Nasional Retail 7,865
1,000 Ekran Building Construction 2,536
2,000 Faber Group<F133> Leisure 1,699
2,000 Golden Hope Plantations Food & Beverages 3,146
1,000 Guinness Anchor Food & Beverages 1,691
1,000 Highlands & Lowlands Food & Beverages 1,557
1,000 Hong Leong Properties Real Estate 1,077
100 Hong Leong Properties Rights,
Expire 11/11/95 Real Estate -
1,000 Hume Industries Construction Materials 5,348
1,000 Idris Hydraulic<F133> Financial Services 1,136
1,000 IGB Corp. Real Estate 865
1,000 IOI Corp. Chemicals 936
250 IOI Corp. Rights,
Expire 12/19/95 Chemicals -
1,000 Jaya Tiasa Holdings Forest Products 2,989
1,000 Johan Holdings Industrial Machinery 735
1,000 Kedah Cement Holdings Construction Materials 1,557
1,000 Kuala Lumpur Kepong Food & Beverages 2,694
1,500 Land & General Forest Products 3,480
1,000 Landmarks Hotels & Restaurants 1,125
1,000 Leader Universal Holdings Electrical Equipment 2,694
125 Lion Land Berhad Real Estate 135
2,000 Magnum Corp. Leisure 3,398
2,000 Malaysian Airline System Air Travel 5,466
1,000 Malayan Cement Construction Materials 1,746
2,000 Malayan United Industies Financial Services 1,581
2,333 Malaysia Int'l. Shipping Containers & Glass 6,147
1,000 Malaysia Mining Corp. Mining 1,337
1,000 Malaysian Mosaics Retail 1,121
1,000 Malaysian Resources Corp. Mining 1,455
2,000 MBF Capital Financial Services 1,887
1,000 Metroplex Real Estate 783
2,000 Mulpha International Conglomerates 1,825
1,000 Multi-Purpose Holdings Conglomerates 1,337
1,000 Nestle Food & Beverage 7,039
1,000 Perlis Plantations Mining 2,969
1,000 Perusahaan Otomobl Automobiles 3,578
1,000 Promet Petroleum Services 916
2,000 Public Bank Banks 3,539
1,000 Rashid Hussain Financial Services 2,477
1,000 RJ Reynolds Food & Beverage 2,045
1,000 Rothmans Pall Mall Tobacco 7,393
1,000 Selangor Properties Real Estate 900
1,000 Shell Refining Co. International Oil 2,989
2,000 Ta Enterprise<F133> Financial Services 2,289
1,000 Tan Chong Motor Holdings Industrial Machinery 940
2,000 Technology Resources
Industries<F133> Electronics 5,073
1,000 Time Engineering Electronics 2,556
1,000 UMW Holdings Industrial Machinery 2,379
1,000 United Engineers Industrial Machinery 6,213
1,000 YTL Corp. Home Builders 5,427
-------
157,758
-------
NETHERLANDS 2.5%
5,674 Ahold NV Retail 214,737
987 Getronics NV Computers & Business Equipment 47,036
149 Hollandsche Benton Groep Home Builders 22,443
1,460 Hoogovens (Kon.) Steel 49,896
1,100 IHC Caland NV Home Builders 31,258
4,204 KLM<F133> Air Travel 138,617
4,650 Koninklijke KNP BT NV Paper 139,785
1,042 Nedlloyd (Kon.) Trucking & Freight Forwarding 26,444
754 OCE-Van der Grinten NV Computers & Business Equipment 43,185
1,399 Pakhoed (Kon.) Petroleum Services 38,072
1,395 Stad Rotterdam Insurance 38,404
1,354 Stork NV Industrial Machinery 32,734
-------
822,611
-------
NEW ZEALAND 0.4%
27,075 Brierley Investments Limited Investment Companies 21,090
17,600 Carter Holt Harvey Forest Products 42,057
1,027 Fisher & Paykel Industries Household Appliances &
Furnishings 3,356
15,100 Fletcher Challenge Forest Products 39,970
8,257 Fletcher Challenge
Forest Division Forest Products 11,392
5,600 Lion Nathan Limited Food & Beverage 12,716
1,000 Wilson & Horton Publishing 5,941
-------
136,522
-------
NORWAY 0.9%
1,000 Aker A Conglomerates 12,602
1,000 Bergesen (Dy) A Trucking & Freight Forwarding 20,710
400 Bergesen (Dy) B,
Non-Voting Preferred Trucking & Freight Forwarding 8,220
600 Dyno Industrier Chemicals 12,137
1,200 Elkem Non-ferrous Metals 13,004
1,775 Hafslund Nycomed A Drugs & Healthcare 50,722
722 Hafslund Nycomed B Drugs & Healthcare 20,168
1,100 Kvaerner As Agricultural Machinery 46,267
800 Leif Hoegh & Co. Trucking & Freight Forwarding 11,559
1,200 Orkla A Conglomerates 62,032
600 Petroleum Geo-Services<F133> Energy Equipment & Services 11,366
6,300 Uni Storebrand Ord<F133> Insurance 31,758
500 Unitor Containers & Glass 6,181
-------
306,726
-------
SINGAPORE 0.5%
2,000 Amcol Holdings Electronics 4,411
4,400 City Developments Real Estate 27,216
1,000 Cycle & Carriage Automobiles 8,907
4,000 DBS Land Real Estate 11,820
1,000 First Capital Corp. Hotels & Restaurants 2,700
1,000 Fraser & Neave Food & Beverage 11,805
2,000 Hai Sun Hup Group Trucking & Freight Forwarding 1,280
1,000 Haw Par Bros. Int'l. Conglomerates 2,071
2,000 Hotel Properties Hotels & Restaurants 3,026
1,000 Inchcape Berhad Business Services 3,238
1,000 Jurong Shipyard Industrial Machinery 6,645
3,000 Keppel Corp. Industrial Machinery 24,601
2,000 Lum Chang Holdings Home Builders 1,626
1,200 Metro Holdings Retail 5,090
2,000 Natsteel Steel 4,029
4,000 Neptune Orient Lines Nol Trucking & Freight Forwarding 4,383
1,000 Overseas Union Ent. Leisure 5,302
2,000 Parkway Holdings Real Estate 5,062
1,000 Shangri-La Hotel Hotels & Restaurants 3,195
200 Singapore Press Holdings Publishing 3,125
3,000 Straits Steamship Land Conglomerates 8,398
2,000 Straits Trading Co. Non-ferrous Metals 4,355
8,000 UIC United Industrial Conglomerates 7,126
3,000 United Overseas Land Real Estate 5,387
-------
164,798
-------
SPAIN 3.5%
48 Acerinox Aluminum 599
535 Acerinox Registered Aluminum 56,279
800 Alba (Corp Financiera) Conglomerates 44,172
10,414 Autopistas CESA (Acesa) Automobiles 97,112
7,850 BCO Central Hispano Registered Banks 162,458
1,300 Corporacion Mapfire Insurance 66,462
2,700 Dragados Y Construccion Home Builders 35,337
2,300 Ebro Agricolas Food & Beverage 22,859
1,000 ENCE (Empresa Nac Celulosa) Forest Products 18,282
1,050 Fasa Renault Automobiles 33,497
700 Fomento Const Y Contra Home Builders 49,358
1,800 Gas Natural SDG SA Electric Utilities 246,479
1,050 Metrovacesa Real Estate 31,951
1,900 Urbis (Inmobilaria) Real Estate 9,201
350 Portland Valderrivas Construction Materials 23,047
1,750 Tabacalera Food & Beverage 58,476
13,900 Union Electrica Fenosa Electric Utilities 64,582
2,400 Uralita Construction Materials 24,147
2,050 Vallehermoso SA Real Estate 33,119
1,100 Viscofan Aluminum 13,767
407 Zardoya Otis Industrial Machinery 39,685
---------
1,130,869
---------
SWEDEN 1.7%
1,800 AGA Series A Chemicals 24,113
1,500 AGA Series B Chemicals 19,417
1,700 Atlas Copco Series A Industrial Machinery 25,716
800 Atlas Copco Series B Construction & Mining 12,102
400 Autoliv Industrial Components 22,939
1,000 Electrolux Series B Household Appliances &
Furnishings 42,748
200 Esselte Series A Electronics 3,025
700 Euroc Series A Construction Materials 17,385
600 Hennes & Mauritz Series B Retail 39,196
300 Securitas Series B Business Services 11,605
7,300 Skand. Enskilda Banken
Series A Banks 49,226
1,400 Skandia Foersaekrings Insurance 35,508
1,700 Skanska Series B Home Builders 55,015
700 SKF Series A Construction & Mining 13,013
900 SKF Series B Industrial Machinery 17,069
3,400 Stora Kopparbergs Series A Forest Products 41,198
1,000 Stora Kopparbergs Series B Forest Products 12,117
2,700 Svenska Cellulosa Forest Products 46,127
2,900 Svenska Handelsbk Series A Banks 50,853
300 Svenska Handelsbk Series B Banks 5,035
1,600 Trelleborg Series B Mining 17,942
-------
561,349
-------
SWITZERLAND 2.1%
148 Adia Porteur<F133> Business Services 24,482
50 Alusuisse-Lonza Hldg Non-ferrous Metals 38,187
100 Alusuisse-Lonza Hldg
Registered Aluminum 76,111
80 Danzas Holding Household Products 14,289
15 Fischer (Georg) Inhaber Ag Industrial Machinery 20,722
15 Fischer (Georg) Inhaber Ag
Registered Industrial Machinery 3,960
40 Forbo Holding Registered Construction Materials 16,859
700 Holderbank Fin Warrants,
Expire 12/20/95 Financial Services 832
148 Holderbk FN Glarus Financial Services 118,765
55 Interdiscount Holding<F133> Retail Trade 6,291
50 Interdiscount Holding
Warrants, Expire 11/15/96 Retail Trade 15
10 Jelmoli Holding Retail Trade 4,795
35 Jelmoli Holding Registered Retail Trade 3,326
10 Kuoni Reisen Series B Leisure 15,926
95 Merkur Holding Ag Registered Retail Trade 21,148
15 Moevenpick Holdings Leisure 6,243
10 Moevenpick Holdings Registered Leisure 4,751
35 Schindler Holding Ag Industrial Machinery 32,798
40 SGS Holding Business Services 75,495
50 Sika Finanz Inhaber Ag Construction Materials 12,846
90 SMH Ag Neuenburg Toys, Amusement &
Sporting Goods 56,067
355 SMH Ag Neuenburg Registered Toys, Amusement &
Sporting Goods 47,635
20 Sulzer Ag Industrial Machinery 11,967
65 Sulzer Ag Registered Industrial Machinery 41,465
55 Swissair<F133> Air Travel 34,602
-------
689,577
Total Common and Preferred Stocks
(Cost) $33,582,527 31,737,386
SHORT-TERM INVESTMENTS 3.1%
UNITED STATES 3.1%
332,000 Short-Term Investments Co.
Prime Portfolio Investment Company 332,000
682,000 Financial Square Prime
Obligation Fund Investment Company 682,000
-------
Total Short-Term Investments
(Cost $1,014,000) 1,014,000
Total Investments 99.8%
(Cost $34,596,527) 32,751,386
Other Assets, less
Liabilities 0.2% 68,772
TOTAL NET ASSETS 100.0% $32,820,158
<F133>Non-income producing
See notes to the financial statements.
BALANCED FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
MIDCORE GROWTH FUND
SPECIAL GROWTH FUND
INTERNATIONAL EQUITY FUND
NOTES TO THE FINANCIAL STATEMENTS
1.ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988, as
a Wisconsin Corporation and is registered as an open-end management investment
company under the Investment Company Act of 1940. The Balanced Fund, the Growth
and Income Fund, the Equity Index Fund, the MidCore Growth Fund, the Special
Growth Fund, and the International Equity Fund (the "Funds") are separate,
diversified investment portfolios of the Company. The Special Growth Fund
commenced operations on December 28, 1989; the Growth and Income Fund and Equity
Index Fund commenced operations on December 29, 1989; the Balanced Fund
commenced operations on March 30, 1992; the MidCore Growth Fund commenced
operations on December 29, 1992; and the International Equity Fund commenced
operations on April 28, 1994.
The costs, in thousands, incurred in connection with the organization, initial
registration and public offering of shares aggregating $25, $46, $44, $14, $45
and $27 for the Balanced, Growth and Income, Equity Index, MidCore Growth,
Special Growth and International Equity Funds, respectively, have been paid by
the Funds. These costs are being amortized over the period of benefit, but not
to exceed sixty months from each Fund's commencement of operations.
The Company has issued two classes of Fund shares in each of the Funds:Series
A and Series Institutional. The Series A shares are subject to a 0.25% service
organization fee and an initial sales charge imposed at the time of purchase, in
accordance with the Funds' prospectus. The maximum sales charge is 4% of the
offering price or 4.16% of the net asset value. Each class of shares for each
Fund has identical rights and privileges except with respect to service
organization fees paid by Series A shares, voting rights on matters affecting a
single class of shares and the exchange privileges of each class of shares.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - Securities which are traded on a recognized stock
exchange are valued at the last sale price on the securities exchange on which
such securities are primarily traded or at the last sale price on a national
securities exchange. Exchange-traded securities for which there were no
transactions are valued at the current bid prices, with the exception of the
International Equity Fund, which is valued at the average of the current bid and
asked prices. Securities traded on only over-the-counter markets are valued on
the basis of closing over-the-counter bid prices. Instruments with a remaining
maturity of 60 days or less are valued on an amortized cost basis. Securities
for which market quotations are not readily available and other assets are
valued at fair value as determined by the investment adviser under the
supervision of the Board of Directors. Portfolio securities which are primarily
traded on foreign securities exchanges are generally valued at the preceding
closing values of such securities on their respective exchanges, except when an
occurrence subsequent to the time a value was so established is likely to have
changed such value. In such an event, the fair value of those securities is
determined through the consideration of other factors by or under the direction
of the Board of Directors. Quotations of foreign securities in foreign currency
are converted to United States ("U.S.") dollar equivalents using the foreign
exchange quotation in effect at the time net asset value is computed. Foreign
securities held by the International Equity Fund may trade in their local
markets on days the U.S. exchanges are closed, and the International Equity
Fund's net asset value may, therefore, change on days when investors may not
purchase or redeem Fund shares.
b) Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied to date with the provisions of the Internal
Revenue Code available to regulated investment companies and intend to continue
to so comply in future years.
c) Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, administration and
certain shareowner service fees. Expenses that are not directly attributable to
a portfolio are typically allocated among the Company's portfolios in proportion
to their respective net assets, number of shareowner accounts, or net sales,
where applicable. Net investment income other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative net asset value of outstanding shares of each
class of shares at the beginning of the day (after adjusting for the current
day's capital share activity of the respective class).
d) Distributions to Shareowners - Dividends from net investment income are
declared and paid quarterly, for the Balanced, Growth and Income and Equity
Index Funds and annually for the MidCore Growth, Special Growth and
International Equity Funds. Distributions of net realized capital gains, if any,
will be declared at least annually.
e) Futures Contracts - The Equity Index Fund may utilize futures contracts to a
limited extent. The primary risks associated with the use of futures contracts
include an imperfect correlation between the change in market value of the
securities held by the Fund and the prices of futures contracts and the
possibility of an illiquid market. Futures contracts are valued based upon their
quoted daily settlement prices. Changes in initial settlement value are
accounted for as unrealized appreciation (depreciation) until the contracts are
terminated at which time realized gains and losses are recognized.
f) When-Issued Securities - The Funds may purchase securities on a when-issued
or delayed delivery basis. Although the payment and interest terms of these
securities are established at the time the purchaser enters into the agreement,
these securities may be delivered and paid for at a future date, generally
within 45 days. The Fund records purchases of when-issued securities and
reflects the values of such securities in determining net asset value in the
same manner as other portfolio securities. The Fund segregates and maintains at
all times cash, cash equivalents, or other high-quality liquid debt securities
in an amount at least equal to the amount of outstanding commitments for when-
issued securities.
g) Unregistered Security - The Balanced Fund owns an investment security which
is unregistered and thus restricted as to resale. This security is valued by the
Fund after giving due consideration to pertinent factors including recent
private sales, market conditions and the issuer's financial performance. Where
future disposition of this security requires registration under the Securities
Act of 1933, the Fund has the right to include its security in such
registration, generally without cost to the Fund. The Fund has no right to
require registration of unregistered securities.
h) Foreign Currency Translations - The books and records of the International
Equity Fund are maintained in U.S. dollars. Foreign currencies, investments, and
other assets and liabilities denominated in foreign currencies are translated
into U.S. dollars at the exchange rates prevailing at the end of the period, and
purchases and sales of investment securities, and income and expenses
denominated in foreign currencies are translated on the respective dates of such
transactions. Unrealized gains and losses on investments which result from
changes in foreign currency exchange rates have been included in the unrealized
net appreciation (depreciation) on investments. Foreign currency exchange gains
and losses included in net appreciation (depreciation) on foreign currency and
net realized gains and losses on foreign currency include foreign currency gains
and losses between trade date and settlement date on investment securities
transactions, foreign currency transactions and the difference between the
amounts of interest and dividends recorded on the books of the Fund and the
amount actually received. The portion of the foreign currency gains and losses
related to fluctuation in exchange rates between the initial purchase trade date
and subsequent sale trade date of a security is included in realized gains and
losses on investment transactions.
i) Other - Investment and shareowner transactions are recorded no later than the
first business day after the trade date. The Funds determine the gain or loss
realized from the investment transactions by comparing the original cost of the
security lot sold with the net sale proceeds. Dividend income is recognized on
the ex-dividend date or as soon as information is available to the Funds, and
interest income is recognized on an accrual basis. Generally accepted accounting
principles require that permanent financial reporting and tax differences be
reclassified to capital stock.
3.CAPITAL SHARE TRANSACTIONS
On January 9, 1995, all previously existing series of shares of each Fund were
reclassified as Series A shares. Effective January 9, 1995, Institutional
shareowners exchanged their Series A shares for the Funds' Institutional series
shares. Transactions in capital shares for the Funds, in thousands, were as
follows:
BALANCED GROWTH AND INCOME EQUITY INDEX
FUND FUND FUND
--------------- -------------- --------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
PERIOD FROM JAN. 10,
TO OCT. 31, 1995:
Series A shares:
Reclassification of
previous class $101,671 4,722 $159,134 7,206 $107,441 3,306
Exchange out to Series
Institutional shares (85,645) (3,978) (125,287) (5,674) (94,927)(2,921)
Shares sold 4,044 166 5,748 225 6,511 171
Shares issued to owners
in reinvestment of
dividends 279 12 358 14 222 5
Shares redeemed (1,911) (79) (5,802) (235) (4,042) (107)
------- ---- ------- ----- ------- -----
Net increase $ 18,438 843 $34,151 1,536 $15,205 454
======= ===== ====== ===== ====== =====
Series Institutional shares:
Exchange in from
Series A shares $ 85,645 3,978 $125,287 5,674 $ 94,927 2,921
Shares sold 34,956 1,469 27,970 1,112 32,025 852
Shares issued to owners
in revinvestment of
dividends 1,518 62 1,572 61 1,803 47
Shares redeemed (34,962) (1,473) (24,218) (956) (17,405) (458)
-------- ------- -------- ----- -------- -----
Net increase $ 87,157 4,036 $130,611 5,891 $111,350 3,362
======= ===== ======= ===== ======= =====
PERIOD FROM NOV. 1, 1994
TO JAN. 9, 1995:
Previous class:
Reclassification to
Series A shares $(101,671) (4,722)$(159,134) (7,206)$(107,441)(3,306)
Shares sold 12,996 608 5,431 241 5,050 155
Shares issued to owners
in reinvestment of
dividends 528 24 4,848 218 868 27
Shares redeemed (4,138) (193) (8,009) (358) (3,100) (95)
------- ----- ------- ----- ------- ----
Net (decrease) $ (92,285) (4,283)$(156,864) (7,105)$(104,623)(3,219)
======= ===== ======= ===== ======= =====
FOR THE YEAR ENDED
OCTOBER 31, 1994:
Shares sold $ 28,851 1,287 $ 34,645 1,503 $ 44,189 1,348
Shares issued to owners
in reinvestment of
dividends 1,738 79 6,597 291 1,769 55
Shares redeemed (15,322) (691) (33,938) (1,471) (23,637) (721)
Net increase $ 15,267 675 $ 7,304 323 $ 22,321 682
MIDCORE GROWTH SPECIAL GROWTH INTERNATIONAL
FUND FUND EQUITY FUND
--------------- -------------- --------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
PERIOD FROM JAN. 10
TO OCT. 31, 1995:
Series A shares:
Reclassification of
previous class $114,588 5,531 $380,463 11,829 $ 24,309 1,297
Exchange to Series
Institutional (106,247) (5,128) (313,914) (9,761) (23,001)(1,228)
Shares sold 3,309 141 20,357 553 878 46
Shares issued to owners
in reinvestment of
dividends 1 - - - - -
Shares redeemed (3,301) (149) (18,782) (513) (574) (30)
------- ----- -------- ----- ----- ----
Net increase $ 8,350 395 $68,124 2,108 $1,612 85
======= ===== ======= ====== ======= =====
Series Institutional
shares:
Exchange in
from Series A $106,247 5,128 $313,914 9,761 $ 23,001 1,228
Shares sold 21,193 911 78,933 2,180 8,978 463
Shares issued to owners
in revinvestment of
dividends 105 5 39 1 - -
Shares redeemed (18,595) (794) (54,904) (1,472) (1,285) (66)
-------- ----- -------- ------- ------- ----
Net increase $108,950 5,250 $337,982 10,470 $30,694 1,625
======= ===== ======= ====== ====== =====
PERIOD FROM NOV. 1, 1994
TO JAN. 9, 1995:
Previous class:
Reclassification to
Series A shares $(114,588) (5,531)$(380,463)(11,829) $(24,309)(1,297)
Shares sold 25,253 1,226 31,095 978 2,199 114
Shares issued to owners
in reinvestment of
dividends 116 5 2,291 71 59 3
Shares redeemed (20,110) (973) (36,576) (1,139) (156) (8)
-------- ----- -------- ------- ----- ---
Net (decrease) $(109,329) (5,273)$(383,653)(11,919) $(22,207)(1,188)
======== ===== ======= ====== ====== =====
FOR THE YEAR ENDED
OCTOBER 31, 1994<F134>:
Shares sold $ 45,282 2,117 $209,100 6,493 $ 24,430 1,222
Shares issued to owners
in reinvestment of
dividends 214 10 436 14 - -
Shares redeemed (17,031) (801) (171,571) (5,323) (680) (34)
-------- ----- --------- ------- ----- ----
Net increase $ 28,465 1,326 $ 37,965 1,184 $ 23,750 1,188
======== ===== ======= ====== ====== =====
<F134>For the period April 28, 1994 through October 31, 1994 for International
Equity Fund.
4.INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the year ended October 31, 1995, were
as follows:
GROWTH AND EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED INCOME INDEX GROWTH GROWTH EQUITY
------ ----- ------ ------ ------
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
Purchases:
U.S. Government $17,102 - - - - -
Other 61,887 $80,249 $24,791 $73,142 $320,229 $14,946
Sales:
U.S. Government 14,091 - - - - -
Other 49,665 84,312 5,643 60,497 320,809 4,161
Equity Index Fund transactions in futures contracts during the period October
31, 1994 to October 31, 1995, in thousands, were as follows:
AGGREGATE
NUMBER OF FACE VALUE OF
CONTRACTS CONTRACTS <F135>
--------- ---------------
Outstanding at October 31, 1994 22 $ 5,138
Contracts opened 227 59,470
Contracts closed (220) (56,173)
Outstanding at October 31, 1995 29 $ 8,435
<F135>The aggregate face value of contracts is computed on the date each
contract is opened.
The number of futures contracts and gross unrealized appreciation, in thousands,
as of October 31, 1995 were as follows:
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
--------- ------------
S&P 500 Financial Futures Contract
Expiration date 12/95<F136> 29 $31
<F136>At October 31, 1995, U.S. Treasury Bills of $330, in thousands, were held
as collateral by the custodian in an initial margin account in connection with
open futures contracts held by the Equity Index Fund.
The International Equity Fund enters into foreign currency forward contracts to
hedge against foreign currency risk on unsettled trades.
At October 31, 1995, gross unrealized appreciation and depreciation of
investments for federal tax purposes, in thousands, were as follows:
GROWTH EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED AND INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
Appreciation $22,532 $40,340 $47,904 $36,632 $130,604 $ 1,871
(Depreciation) (1,897) (881) (2,589) (1,880) (14,503) (3,720)
------- ----- ------- ------- -------- -------
Net unrealized
appreciation
(depreciation) on
investments $20,635 $39,459 $45,315 $34,752 $116,101 $(1,849)
====== ====== ====== ====== ======= ======
At October 31, 1995, the cost of investments, in thousands, for federal income
tax purposes was $104,602, $168,127, $111,231, $109,910, $394,568 and $34,601
for the Balanced, Growth and Income, Equity Index, MidCore Growth, Special
Growth and International Equity Funds, respectively.
At October 31, 1995, the Midcore Growth Fund had accumulated net realized
capital loss carryovers, in thousands, of $295 expiring in 2001. The MidCore
Growth Fund had accumulated net realized capital loss carryovers, in thousands,
of $4,704, expiring in 2002. To the extent the MidCore Growth Fund realizes
future net capital gains, taxable distributions to its shareowners will be
offset by any unused capital loss carryover. For the year ended October 31,
1995, the Balanced and MidCore Growth Funds utilized, in thousands, capital loss
carryovers of $1,398 and $2,666, respectively. For the year ended October 31,
1995, the following percent of dividends paid from net investment income
qualifies for the dividend received deduction available to corporate
stockholders:Balanced Fund 17%, Growth and Income Fund 100%, Equity Index Fund
90% and MidCore Growth Fund 100%. In addition, the Special Growth Fund's capital
gain distribution of $2,571, in thousands, contains $116, in thousands, of
ordinary income that qualifies for an 8% dividend received deduction available
to corporate shareholders.
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, the Adviser is entitled to receive a fee,
calculated daily and payable monthly, at the annual rates presented below as
applied to each Fund's daily net assets. FIRMCOentered into a Sub-Advisory
Agreement with State Street Bank and Trust Company (the "Sub-Adviser") for the
International Equity Fund. The Sub-Adviser is a wholly-owned subsidiary of State
Street Boston Corporation, a bank holding company. Pursuant to its Sub-Advisory
Agreement with FIRMCO, the Sub-Adviser is entitled to receive a fee from FIRMCO,
calculated daily and payable monthly, at the annual rate presented below as
applied to the International Equity Fund's daily net assets.
For the period ended October 31, 1995, FIRMCO voluntarily waived the following
fees, in thousands, by Fund:
GROWTH EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED AND INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
Annual Rate 0.75% 0.75% 0.25% 0.75% 0.75% <F137><F138>
Fees waived $267 $69 - $62 $48 $312
<F137>FIRMCO is entitled to receive a fee, calculated daily and payable monthly,
at the annual rate of 1.50% of the Fund's first $25 million of average daily net
assets, 1.45% on the next $25 million, 1.40% on the next $50 million and 1.35%
of the Fund's average daily net assets in excess of $100 million.
<F138>to its Sub-Advisory Agreement with FIRMCO, the Sub-Adviser is entitled to
receive a fee from FIRMCO, calculated daily and payable monthly, at the annual
rate of 0.40% of the Fund's first $25 million of average daily net assets, 0.35%
on the next $25 million, 0.30% on the next $50 million and 0.25% of the Fund's
average daily net assets in excess of $100 million.
State Street Bank and Trust Company serves as custodian and accounting
services agent for the International Equity Fund, and Firstar Trust Company, an
affiliate of FIRMCO, serves as custodian and accounting services agent for the
remaining Funds. Firstar Trust Company serves as transfer agent for all the
Funds.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, computed daily and
payable monthly, at the annual rate of 0.125% of the Company's first $2 billion
of average aggregate daily net assets, plus 0.10% of the Company's average
aggregate daily net assets in excess of $2 billion. For the year ended October
31, 1995, $83, $134, $98, $90, $346 and $20 of administration fees, in
thousands, were voluntarily waived for the Balanced, Growth and Income, Equity
Index, MidCore Growth, Special Growth and International Equity Funds,
respectively.
The Company has entered into Servicing Agreements with certain Service
Organizations, including FIRMCO affiliates, for the Series A class of shares.
The Service Organizations are entitled to receive fees from the Funds up to the
annual rate of 0.25% of the average daily net asset value of the Series A Shares
for certain support and/or distribution services to customers of the Service
Organizations who are beneficial owners of Fund Series A Shares. These services
may include assisting customers in processing purchase, exchange and redemption
requests; processing dividend and distribution payments from the Funds; and
providing information periodically to customers showing their positions in Fund
Series A Shares. Service Organization fees, in thousands, paid by the Balanced,
Growth and Income, Equity Index, MidCore Growth, Special Growth and
International Equity Funds to FIRMCO affiliates aggregated $32, $64, $25, $15,
$130 and $3 respectively, for the year ended October 31, 1995.
Each Director of the Company who is not affiliated with FIRMCO receives an
annual fee from the Company for service as a Director and is eligible to
participate in a deferred compensation plan with respect to these fees.
Participants in the plan may designate their deferred Director's fees as if
invested in any one of the Portico Funds (with the exception of the MicroCap
Fund) or in 90-day U.S. Treasury bills. The value of each Director's deferred
compensation account will increase or decrease as if it were invested in shares
of the selected Portico Funds or 90-day U.S. Treasury bills. The Funds maintain
their proportionate share of the Company's liability for deferred fees.
6. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in
U.S.companies and the U.S. government. These risks include revaluation of
currencies and future adverse political and economic developments. Moreover,
securities of many foreign companies and foreign governments and their markets
may be less liquid and their prices more volatile than those of securities of
comparable U.S. companies and the U.S.Government.
7. DISTRIBUTIONS
On November 8, 1995, a distribution of approximately $4.58 per share (including
$1.55 taxable to shareowners as ordinary income dividends and $3.03 applicable
to long-term capital gains), aggregating $57,481, in thousands, was paid by the
Special Growth Fund to the shareowners of record on November 7, 1995, of both
the Series A and Series Institutional Shares.
On November 8, 1995, a long-term capital gain distribution of approximately
$1.19 per share aggregating $8,837, in thousands, was paid by the Growth and
Income Fund to the shareowners of record on November 7, 1995, of both the Series
A and Series Institutional Shares.
Report of Independent Accountants
To the Board of Directors and Shareholders of the Portico Balanced Fund, the
Portico Growth and Income Fund, the Portico Equity Index Fund, the Portico
MidCore Growth Fund, the Portico Special Growth Fund, and the Portico
International Equity Fund.
In our opinion, the accompanying statement of assets and liabilities, including
the schedules of investments, 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 the Portico Balanced Fund, the
Portico Growth and Income Fund, the Portico Equity Index Fund, the Portico
MidCore Growth Fund, the Portico Special Growth Fund and the Portico
International Equity Fund (six of the portfolios of Portico Funds, Inc. (the
"Funds")) at October 31, 1995, the results of each of their operations for the
year then ended, the changes in each of their net assets for the year ended
October 31, 1995, and for each of the other periods indicated, and each of their
financial highlights for the year ended October 31, 1995, and for each of the
other periods indicated, all in conformity with generally accepted accounting
principles. 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 generally accepted auditing standards 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 October 31, 1995, by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse
Milwaukee, Wisconsin
November 29, 1995
- -Portico Funds are available through:
- the Portico Funds Center,
- Investment Specialists who are registered representatives of Elan Investment
Services, Inc., a registered broker/dealer, NASD and SIPC member,
- and through selected shareholder organizations.
This report is authorized for distribution only when preceded or accompanied by
a current prospectus.
To Open an Account or Request Information
1-800-982-8909
1-414-287-3710
For Account Balances and Investor Services
1-800-228-1024
1-414-287-3808
Portico Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> PORTICO MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 173,033
<INVESTMENTS-AT-VALUE> 173,033
<RECEIVABLES> 80
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 173,122
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 861
<TOTAL-LIABILITIES> 861
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 172,244
<SHARES-COMMON-STOCK> 172,261
<SHARES-COMMON-PRIOR> 165,018
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 172,261
<DIVIDEND-INCOME> 0,388
<INTEREST-INCOME> 9,388
<OTHER-INCOME> 045
<EXPENSES-NET> 94543
<NET-INVESTMENT-INCOME> 8,443
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0,443
<NET-CHANGE-FROM-OPS> 8,443
<EQUALIZATION> 0,443
<DISTRIBUTIONS-OF-INCOME> 8,443
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 001,835
<NUMBER-OF-SHARES-SOLD> 601,835
<NUMBER-OF-SHARES-REDEEMED> 601,692
<SHARES-REINVESTED> 7,100
<NET-CHANGE-IN-ASSETS> 7,243
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 088
<GROSS-ADVISORY-FEES> 788
<INTEREST-EXPENSE> 0,430
<GROSS-EXPENSE> 1,43021
<AVERAGE-NET-ASSETS> 157,621
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 005
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual and not expressed in 1,000's
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> PORTICO U.S. GOVERNMENT MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 163,056
<INVESTMENTS-AT-VALUE> 163,056
<RECEIVABLES> 769
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 163,834
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 766
<TOTAL-LIABILITIES> 766
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 163,052
<SHARES-COMMON-STOCK> 163,068
<SHARES-COMMON-PRIOR> 183,591
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 163,068
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 10,115
<OTHER-INCOME> 0
<EXPENSES-NET> 1,039
<NET-INVESTMENT-INCOME> 9,076
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 9,076
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 9,076
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 875,356
<NUMBER-OF-SHARES-REDEEMED> 898,528
<SHARES-REINVESTED> 2,649
<NET-CHANGE-IN-ASSETS> (20,523)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 866
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,305
<AVERAGE-NET-ASSETS> 173,252
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .6
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is the actual amount and not expressed in 1,000's
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> PORTICO TAX-EXEMPT MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1995
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 83,469
<INVESTMENTS-AT-VALUE> 83,469
<RECEIVABLES> 654
<ASSETS-OTHER> 226
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 84,349
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 265
<TOTAL-LIABILITIES> 265
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 84,076
<SHARES-COMMON-STOCK> 84,084
<SHARES-COMMON-PRIOR> 70,436
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 84,084
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,779
<OTHER-INCOME> 0
<EXPENSES-NET> 420
<NET-INVESTMENT-INCOME> 2,359
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 2,359
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,359
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 182,982
<NUMBER-OF-SHARES-REDEEMED> 170,218
<SHARES-REINVESTED> 884
<NET-CHANGE-IN-ASSETS> 13,648
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 351
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 590
<AVERAGE-NET-ASSETS> 70,117
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .03
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .6
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is the actual amount and not expressed in 1,000's
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> PORTICO SHORT-TERM BOND MARKET FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 140,017
<INVESTMENTS-AT-VALUE> 140,828
<RECEIVABLES> 5,128
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 145,960
<PAYABLE-FOR-SECURITIES> 3,191
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 80
<TOTAL-LIABILITIES> 3,271
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 143,386
<SHARES-COMMON-STOCK> 4,641
<SHARES-COMMON-PRIOR> 12,200
<ACCUMULATED-NII-CURRENT> 119
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,628)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 811
<NET-ASSETS> 142,689
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,616
<OTHER-INCOME> 0
<EXPENSES-NET> 729
<NET-INVESTMENT-INCOME> 7,887
<REALIZED-GAINS-CURRENT> (329)
<APPREC-INCREASE-CURRENT> 3,275
<NET-CHANGE-FROM-OPS> 10,833
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,617
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,264
<NUMBER-OF-SHARES-REDEEMED> 9,150
<SHARES-REINVESTED> 327
<NET-CHANGE-IN-ASSETS> 20,321
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,361)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 767
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,261
<AVERAGE-NET-ASSETS> 127,903
<PER-SHARE-NAV-BEGIN> 10.03
<PER-SHARE-NII> .61
<PER-SHARE-GAIN-APPREC> .24
<PER-SHARE-DIVIDEND> .6
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.27
<EXPENSE-RATIO> .69
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual and not expressed in 1,000's
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> PORTICO BOND IMMDEX - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 293,903
<INVESTMENTS-AT-VALUE> 307,132
<RECEIVABLES> 5,190
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 312,330
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 181
<TOTAL-LIABILITIES> 181
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 299,707
<SHARES-COMMON-STOCK> 786
<SHARES-COMMON-PRIOR> 10,004
<ACCUMULATED-NII-CURRENT> 261
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,049)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 13,229
<NET-ASSETS> 312,149
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19,286
<OTHER-INCOME> 0
<EXPENSES-NET> 1,261
<NET-INVESTMENT-INCOME> 18,025
<REALIZED-GAINS-CURRENT> (890)
<APPREC-INCREASE-CURRENT> 24,964
<NET-CHANGE-FROM-OPS> 42,099
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,860
<DISTRIBUTIONS-OF-GAINS> 404
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 644
<NUMBER-OF-SHARES-REDEEMED> 10,042
<SHARES-REINVESTED> 180
<NET-CHANGE-IN-ASSETS> 55,371
<ACCUMULATED-NII-PRIOR> 1,494
<ACCUMULATED-GAINS-PRIOR> (67)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 832
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,436
<AVERAGE-NET-ASSETS> 277,498
<PER-SHARE-NAV-BEGIN> 25.67
<PER-SHARE-NII> 1.68
<PER-SHARE-GAIN-APPREC> 2.30
<PER-SHARE-DIVIDEND> 1.79
<PER-SHARE-DISTRIBUTIONS> .04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 27.82
<EXPENSE-RATIO> .64
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual and not expressed in 1,000's
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> PORTICO GROWTH AND INCOME FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 168,068
<INVESTMENTS-AT-VALUE> 207,586
<RECEIVABLES> 465
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 208,055
<PAYABLE-FOR-SECURITIES> 2,697
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 182
<TOTAL-LIABILITIES> 2,879
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 156,703
<SHARES-COMMON-STOCK> 1,536
<SHARES-COMMON-PRIOR> 7,105
<ACCUMULATED-NII-CURRENT> 175
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 8,779
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 39,518
<NET-ASSETS> 205,176
<DIVIDEND-INCOME> 3,924
<INTEREST-INCOME> 744
<OTHER-INCOME> 0
<EXPENSES-NET> 1,693
<NET-INVESTMENT-INCOME> 2,975
<REALIZED-GAINS-CURRENT> 8,861
<APPREC-INCREASE-CURRENT> 28,643
<NET-CHANGE-FROM-OPS> 40,479
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,299
<DISTRIBUTIONS-OF-GAINS> 4,244
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 466
<NUMBER-OF-SHARES-REDEEMED> 6,267
<SHARES-REINVESTED> 232
<NET-CHANGE-IN-ASSETS> 41,123
<ACCUMULATED-NII-PRIOR> 165
<ACCUMULATED-GAINS-PRIOR> 4,161
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,350
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,896
<AVERAGE-NET-ASSETS> 180,154
<PER-SHARE-NAV-BEGIN> 23.09
<PER-SHARE-NII> .37
<PER-SHARE-GAIN-APPREC> 5.14
<PER-SHARE-DIVIDEND> .38
<PER-SHARE-DISTRIBUTIONS> .60
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 27.62
<EXPENSE-RATIO> 1.09
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual and is not expressed in 1,000's
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> PORTICO EQUITY INDEX - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 110,846
<INVESTMENTS-AT-VALUE> 156,546
<RECEIVABLES> 339
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 156,893
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 124
<TOTAL-LIABILITIES> 124
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 109,821
<SHARES-COMMON-STOCK> 454
<SHARES-COMMON-PRIOR> 3,219
<ACCUMULATED-NII-CURRENT> 245
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 972
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 45,731
<NET-ASSETS> 156,769
<DIVIDEND-INCOME> 3,200
<INTEREST-INCOME> 377
<OTHER-INCOME> 0
<EXPENSES-NET> 628
<NET-INVESTMENT-INCOME> 2,949
<REALIZED-GAINS-CURRENT> 1,377
<APPREC-INCREASE-CURRENT> 26,047
<NET-CHANGE-FROM-OPS> 30,373
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 957
<DISTRIBUTIONS-OF-GAINS> 201
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 326
<NUMBER-OF-SHARES-REDEEMED> 3,123
<SHARES-REINVESTED> 32
<NET-CHANGE-IN-ASSETS> 49,206
<ACCUMULATED-NII-PRIOR> 149
<ACCUMULATED-GAINS-PRIOR> (200)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 320
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 726
<AVERAGE-NET-ASSETS> 128,656
<PER-SHARE-NAV-BEGIN> 33.41
<PER-SHARE-NII> .7
<PER-SHARE-GAIN-APPREC> 7.70
<PER-SHARE-DIVIDEND> .68
<PER-SHARE-DISTRIBUTIONS> .06
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 41.07
<EXPENSE-RATIO> .66
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 8
<NAME> PORTICO SPECIAL GROWTH FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 393,397
<INVESTMENTS-AT-VALUE> 510,669
<RECEIVABLES> 11,323
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 521,996
<PAYABLE-FOR-SECURITIES> 71
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 428
<TOTAL-LIABILITIES> 499
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 347,915
<SHARES-COMMON-STOCK> 2,108
<SHARES-COMMON-PRIOR> 11,919
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 56,309
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 117,272
<NET-ASSETS> 521,497
<DIVIDEND-INCOME> 1,539
<INTEREST-INCOME> 2,461
<OTHER-INCOME> 0
<EXPENSES-NET> 4,148
<NET-INVESTMENT-INCOME> (148)
<REALIZED-GAINS-CURRENT> 57,101
<APPREC-INCREASE-CURRENT> 49,078
<NET-CHANGE-FROM-OPS> 106,031
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 2,526
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,531
<NUMBER-OF-SHARES-REDEEMED> 11,413
<SHARES-REINVESTED> 71
<NET-CHANGE-IN-ASSETS> 125,913
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,922
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,340
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,542
<AVERAGE-NET-ASSETS> 445,793
<PER-SHARE-NAV-BEGIN> 33.19
<PER-SHARE-NII> (.07)
<PER-SHARE-GAIN-APPREC> 8.49
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .21
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 41.4
<EXPENSE-RATIO> 1.09
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 9
<NAME> PORTICO INSTITUTIONAL MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 719,652
<INVESTMENTS-AT-VALUE> 719,652
<RECEIVABLES> 275
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 719,930
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,364
<TOTAL-LIABILITIES> 3,364
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 716,494
<SHARES-COMMON-STOCK> 716,566
<SHARES-COMMON-PRIOR> 754,636
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 716,566
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 42,483
<OTHER-INCOME> 0
<EXPENSES-NET> 2,513
<NET-INVESTMENT-INCOME> 39,970
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 39,970
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 39,970
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,916,794
<NUMBER-OF-SHARES-REDEEMED> 2,958,874
<SHARES-REINVESTED> 4,010
<NET-CHANGE-IN-ASSETS> (38,070)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,552
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,043
<AVERAGE-NET-ASSETS> 710,475
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .06
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .06
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 10
<NAME> PORTICO U.S. TREASURY MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 63,872
<INVESTMENTS-AT-VALUE> 63,872
<RECEIVABLES> 1,082
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 64,958
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 303
<TOTAL-LIABILITIES> 303
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 64,649
<SHARES-COMMON-STOCK> 64,655
<SHARES-COMMON-PRIOR> 56,020
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 64,655
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,348
<OTHER-INCOME> 0
<EXPENSES-NET> 356
<NET-INVESTMENT-INCOME> 2,992
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 2,992
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,992
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 205,921
<NUMBER-OF-SHARES-REDEEMED> 197,569
<SHARES-REINVESTED> 283
<NET-CHANGE-IN-ASSETS> 8,635
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 297
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 498
<AVERAGE-NET-ASSETS> 59,356
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .60<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> PORTICO BALANCED FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 104,294
<INVESTMENTS-AT-VALUE> 125,237
<RECEIVABLES> 1,505
<ASSETS-OTHER> 16
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 126,758
<PAYABLE-FOR-SECURITIES> 277
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 97
<TOTAL-LIABILITIES> 374
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 102,869
<SHARES-COMMON-STOCK> 843
<SHARES-COMMON-PRIOR> 4,283
<ACCUMULATED-NII-CURRENT> 226
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,346
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20,943
<NET-ASSETS> 126,384
<DIVIDEND-INCOME> 411
<INTEREST-INCOME> 2,897
<OTHER-INCOME> 0
<EXPENSES-NET> 864
<NET-INVESTMENT-INCOME> 2,444
<REALIZED-GAINS-CURRENT> 3,757
<APPREC-INCREASE-CURRENT> 14,596
<NET-CHANGE-FROM-OPS> 20,797
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 825
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 774
<NUMBER-OF-SHARES-REDEEMED> 4,250
<SHARES-REINVESTED> 36
<NET-CHANGE-IN-ASSETS> 31,727
<ACCUMULATED-NII-PRIOR> 146
<ACCUMULATED-GAINS-PRIOR> (1,412)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 828
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,214
<AVERAGE-NET-ASSETS> 110,668
<PER-SHARE-NAV-BEGIN> 22.10
<PER-SHARE-NII> .49
<PER-SHARE-GAIN-APPREC> 3.77
<PER-SHARE-DIVIDEND> .47
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.89
<EXPENSE-RATIO> .94
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> PORTICO MIDCORE GROWTH FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 109,839
<INVESTMENTS-AT-VALUE> 144,662
<RECEIVABLES> 592
<ASSETS-OTHER> 10
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 145,264
<PAYABLE-FOR-SECURITIES> 608
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 123
<TOTAL-LIABILITIES> 731
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 114,780
<SHARES-COMMON-STOCK> 395
<SHARES-COMMON-PRIOR> 5,273
<ACCUMULATED-NII-CURRENT> (1)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (5,070)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 34,823
<NET-ASSETS> 144,533
<DIVIDEND-INCOME> 916
<INTEREST-INCOME> 393
<OTHER-INCOME> 0
<EXPENSES-NET> 1,164
<NET-INVESTMENT-INCOME> 145
<REALIZED-GAINS-CURRENT> 2,657
<APPREC-INCREASE-CURRENT> 20,823
<NET-CHANGE-FROM-OPS> 23,625
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 138
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,367
<NUMBER-OF-SHARES-REDEEMED> 6,250
<SHARES-REINVESTED> 5
<NET-CHANGE-IN-ASSETS> 31,336
<ACCUMULATED-NII-PRIOR> 50
<ACCUMULATED-GAINS-PRIOR> (7,727)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 956
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,316
<AVERAGE-NET-ASSETS> 127,611
<PER-SHARE-NAV-BEGIN> 21.47
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 4.16
<PER-SHARE-DIVIDEND> .03
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.58
<EXPENSE-RATIO> 1.09
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 13
<NAME> PORTICO INTERMEDIATE BOND MARKET - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1995
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 136,097
<INVESTMENTS-AT-VALUE> 139,159
<RECEIVABLES> 2,657
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 141,825
<PAYABLE-FOR-SECURITIES> 1,240
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 68
<TOTAL-LIABILITIES> 1,308
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 139,176
<SHARES-COMMON-STOCK> 1,133
<SHARES-COMMON-PRIOR> 9,128
<ACCUMULATED-NII-CURRENT> 112
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,834)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,062
<NET-ASSETS> 140,517
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7,277
<OTHER-INCOME> 0
<EXPENSES-NET> 557
<NET-INVESTMENT-INCOME> 6,720
<REALIZED-GAINS-CURRENT> (417)
<APPREC-INCREASE-CURRENT> 6,232
<NET-CHANGE-FROM-OPS> 12,535
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,556
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,114
<NUMBER-OF-SHARES-REDEEMED> 9,224
<SHARES-REINVESTED> 115
<NET-CHANGE-IN-ASSETS> 52,211
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,418)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 537
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 876
<AVERAGE-NET-ASSETS> 107,737
<PER-SHARE-NAV-BEGIN> 9.67
<PER-SHARE-NII> .60
<PER-SHARE-GAIN-APPREC> .53
<PER-SHARE-DIVIDEND> .59
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.21
<EXPENSE-RATIO> .69
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 14
<NAME> PORTICO TAX-EXEMPT INTERMEDIATE BOND FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 34,023
<INVESTMENTS-AT-VALUE> 34,621
<RECEIVABLES> 698
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 35,327
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 21
<TOTAL-LIABILITIES> 21
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34,830
<SHARES-COMMON-STOCK> 753
<SHARES-COMMON-PRIOR> 2,675
<ACCUMULATED-NII-CURRENT> 20
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (142)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 598
<NET-ASSETS> 35,306
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,501
<OTHER-INCOME> 0
<EXPENSES-NET> 169
<NET-INVESTMENT-INCOME> 1,332
<REALIZED-GAINS-CURRENT> 8
<APPREC-INCREASE-CURRENT> 1,367
<NET-CHANGE-FROM-OPS> 2,707
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 466
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 875
<NUMBER-OF-SHARES-REDEEMED> 2,832
<SHARES-REINVESTED> 35
<NET-CHANGE-IN-ASSETS> 9,139
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (150)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 151
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 319
<AVERAGE-NET-ASSETS> 30,272
<PER-SHARE-NAV-BEGIN> 9.78
<PER-SHARE-NII> .42
<PER-SHARE-GAIN-APPREC> .45
<PER-SHARE-DIVIDEND> .42
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.23
<EXPENSE-RATIO> .71
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 15
<NAME> PORTICO INTERNATIONAL EQUITY FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 34,597
<INVESTMENTS-AT-VALUE> 32,752
<RECEIVABLES> 343
<ASSETS-OTHER> 159
<OTHER-ITEMS-ASSETS> 67
<TOTAL-ASSETS> 33,321
<PAYABLE-FOR-SECURITIES> 266
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 235
<TOTAL-LIABILITIES> 501
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 33,840
<SHARES-COMMON-STOCK> 85
<SHARES-COMMON-PRIOR> 1,188
<ACCUMULATED-NII-CURRENT> 156
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 666
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,842)
<NET-ASSETS> 32,820
<DIVIDEND-INCOME> 538
<INTEREST-INCOME> 89
<OTHER-INCOME> 0
<EXPENSES-NET> 435
<NET-INVESTMENT-INCOME> 192
<REALIZED-GAINS-CURRENT> 661
<APPREC-INCREASE-CURRENT> (1,825)
<NET-CHANGE-FROM-OPS> (972)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 55
<DISTRIBUTIONS-OF-GAINS> 8
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 160
<NUMBER-OF-SHARES-REDEEMED> 1,266
<SHARES-REINVESTED> 3
<NET-CHANGE-IN-ASSETS> 9,064
<ACCUMULATED-NII-PRIOR> 43
<ACCUMULATED-GAINS-PRIOR> (20)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 431
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 767
<AVERAGE-NET-ASSETS> 28,810
<PER-SHARE-NAV-BEGIN> 19.99
<PER-SHARE-NII> .08
<PER-SHARE-GAIN-APPREC> (.87)
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> .01
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.15
<EXPENSE-RATIO> 1.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 16
<NAME> PORTICO SHORT-TERM BOND MARKET FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 140,017
<INVESTMENTS-AT-VALUE> 140,828
<RECEIVABLES> 5,128
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 145,960
<PAYABLE-FOR-SECURITIES> 3,191
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 80
<TOTAL-LIABILITIES> 3,271
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 143,386
<SHARES-COMMON-STOCK> 9,233
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 119
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,628)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 811
<NET-ASSETS> 142,689
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,616
<OTHER-INCOME> 0
<EXPENSES-NET> 729
<NET-INVESTMENT-INCOME> 7,887
<REALIZED-GAINS-CURRENT> (329)
<APPREC-INCREASE-CURRENT> 3,275
<NET-CHANGE-FROM-OPS> 10,833
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,133
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,267
<NUMBER-OF-SHARES-REDEEMED> 1,336
<SHARES-REINVESTED> 302
<NET-CHANGE-IN-ASSETS> 20,321
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,361)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 767
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,261
<AVERAGE-NET-ASSETS> 127,903
<PER-SHARE-NAV-BEGIN> 10.03
<PER-SHARE-NII> .63
<PER-SHARE-GAIN-APPREC> .24
<PER-SHARE-DIVIDEND> .62
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.28
<EXPENSE-RATIO> .50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 17
<NAME> PORTICO BOND IMMDEX - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 293,903
<INVESTMENTS-AT-VALUE> 307,132
<RECEIVABLES> 5,190
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 312,330
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 181
<TOTAL-LIABILITIES> 181
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 299,707
<SHARES-COMMON-STOCK> 10,433
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 261
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,049)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 13,229
<NET-ASSETS> 312,149
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19,286
<OTHER-INCOME> 0
<EXPENSES-NET> 1,261
<NET-INVESTMENT-INCOME> 18,025
<REALIZED-GAINS-CURRENT> (890)
<APPREC-INCREASE-CURRENT> 24,964
<NET-CHANGE-FROM-OPS> 42,099
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 14,132
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11387
<NUMBER-OF-SHARES-REDEEMED> 1,421
<SHARES-REINVESTED> 467
<NET-CHANGE-IN-ASSETS> 55,371
<ACCUMULATED-NII-PRIOR> 1,494
<ACCUMULATED-GAINS-PRIOR> (67)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 832
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,436
<AVERAGE-NET-ASSETS> 277,498
<PER-SHARE-NAV-BEGIN> 25.67
<PER-SHARE-NII> 1.74
<PER-SHARE-GAIN-APPREC> 2.29
<PER-SHARE-DIVIDEND> 1.84
<PER-SHARE-DISTRIBUTIONS> .04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 27.82
<EXPENSE-RATIO> .44
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 18
<NAME> PORTICO GROWTH AND INCOME FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 168,068
<INVESTMENTS-AT-VALUE> 207,586
<RECEIVABLES> 465
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 208,055
<PAYABLE-FOR-SECURITIES> 2,697
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 182
<TOTAL-LIABILITIES> 2,879
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 156,703
<SHARES-COMMON-STOCK> 5,891
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 175
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 8,779
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 39,518
<NET-ASSETS> 205,176
<DIVIDEND-INCOME> 3,924
<INTEREST-INCOME> 744
<OTHER-INCOME> 0
<EXPENSES-NET> 1,693
<NET-INVESTMENT-INCOME> 2,975
<REALIZED-GAINS-CURRENT> 8,861
<APPREC-INCREASE-CURRENT> 28,643
<NET-CHANGE-FROM-OPS> 40,479
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,711
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,786
<NUMBER-OF-SHARES-REDEEMED> 956
<SHARES-REINVESTED> 61
<NET-CHANGE-IN-ASSETS> 41,123
<ACCUMULATED-NII-PRIOR> 165
<ACCUMULATED-GAINS-PRIOR> 4,161
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,350
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,896
<AVERAGE-NET-ASSETS> 180,154
<PER-SHARE-NAV-BEGIN> 23.09
<PER-SHARE-NII> .42
<PER-SHARE-GAIN-APPREC> 5.14
<PER-SHARE-DIVIDEND> .42
<PER-SHARE-DISTRIBUTIONS> .60
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 27.63
<EXPENSE-RATIO> .90
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 19
<NAME> PORTICO EQUITY INDEX FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 110,846
<INVESTMENTS-AT-VALUE> 156,546
<RECEIVABLES> 339
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 156,893
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 124
<TOTAL-LIABILITIES> 124
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 109,821
<SHARES-COMMON-STOCK> 3,362
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 245
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 972
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 45,731
<NET-ASSETS> 156,769
<DIVIDEND-INCOME> 3,200
<INTEREST-INCOME> 377
<OTHER-INCOME> 0
<EXPENSES-NET> 628
<NET-INVESTMENT-INCOME> 2,949
<REALIZED-GAINS-CURRENT> 1,377
<APPREC-INCREASE-CURRENT> 26,047
<NET-CHANGE-FROM-OPS> 30,373
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,941
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,773
<NUMBER-OF-SHARES-REDEEMED> 458
<SHARES-REINVESTED> 47
<NET-CHANGE-IN-ASSETS> 49,206
<ACCUMULATED-NII-PRIOR> 149
<ACCUMULATED-GAINS-PRIOR> (200)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 320
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 726
<AVERAGE-NET-ASSETS> 128,656
<PER-SHARE-NAV-BEGIN> 33.41
<PER-SHARE-NII> .76
<PER-SHARE-GAIN-APPREC> 7.71
<PER-SHARE-DIVIDEND> .74
<PER-SHARE-DISTRIBUTIONS> .06
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 41.08
<EXPENSE-RATIO> .460
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 20
<NAME> PORTICO SPECIAL GROWTH FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 393,397
<INVESTMENTS-AT-VALUE> 510,669
<RECEIVABLES> 11,323
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 521,996
<PAYABLE-FOR-SECURITIES> 71
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 428
<TOTAL-LIABILITIES> 499
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 347,915
<SHARES-COMMON-STOCK> 10,470
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 56,309
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 117,272
<NET-ASSETS> 521,497
<DIVIDEND-INCOME> 1,539
<INTEREST-INCOME> 2,461
<OTHER-INCOME> 0
<EXPENSES-NET> 4,148
<NET-INVESTMENT-INCOME> (148)
<REALIZED-GAINS-CURRENT> 57,101
<APPREC-INCREASE-CURRENT> 49,078
<NET-CHANGE-FROM-OPS> 106,031
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 45
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,941
<NUMBER-OF-SHARES-REDEEMED> 1,472
<SHARES-REINVESTED> 1
<NET-CHANGE-IN-ASSETS> 125,913
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,922
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,340
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,542
<AVERAGE-NET-ASSETS> 445,793
<PER-SHARE-NAV-BEGIN> 33.19
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 8.49
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .21
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 41.47
<EXPENSE-RATIO> .900
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 21
<NAME> PORTICO BALANCED FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 104,294
<INVESTMENTS-AT-VALUE> 125,237
<RECEIVABLES> 1,505
<ASSETS-OTHER> 16
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 126,758
<PAYABLE-FOR-SECURITIES> 277
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 97
<TOTAL-LIABILITIES> 374
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 102,869
<SHARES-COMMON-STOCK> 4,036
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 226
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,346
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20,943
<NET-ASSETS> 126,384
<DIVIDEND-INCOME> 411
<INTEREST-INCOME> 2,897
<OTHER-INCOME> 0
<EXPENSES-NET> 864
<NET-INVESTMENT-INCOME> 2,444
<REALIZED-GAINS-CURRENT> 3,757
<APPREC-INCREASE-CURRENT> 14,596
<NET-CHANGE-FROM-OPS> 20,797
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,555
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,447
<NUMBER-OF-SHARES-REDEEMED> 1,473
<SHARES-REINVESTED> 62
<NET-CHANGE-IN-ASSETS> 31,727
<ACCUMULATED-NII-PRIOR> 146
<ACCUMULATED-GAINS-PRIOR> (1,412)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 828
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,214
<AVERAGE-NET-ASSETS> 110,668
<PER-SHARE-NAV-BEGIN> 22.10
<PER-SHARE-NII> .53
<PER-SHARE-GAIN-APPREC> 3.78
<PER-SHARE-DIVIDEND> .51
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.9
<EXPENSE-RATIO> .750
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 22
<NAME> PORTICO MIDCORE GROWTH FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 109,839
<INVESTMENTS-AT-VALUE> 144,662
<RECEIVABLES> 592
<ASSETS-OTHER> 10
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 145,264
<PAYABLE-FOR-SECURITIES> 608
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 123
<TOTAL-LIABILITIES> 731
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 114,780
<SHARES-COMMON-STOCK> 5,250
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (1)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (5,070)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 34,823
<NET-ASSETS> 144,533
<DIVIDEND-INCOME> 916
<INTEREST-INCOME> 393
<OTHER-INCOME> 0
<EXPENSES-NET> 1,164
<NET-INVESTMENT-INCOME> 145
<REALIZED-GAINS-CURRENT> 2,657
<APPREC-INCREASE-CURRENT> 20,823
<NET-CHANGE-FROM-OPS> 23,625
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 122
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,039
<NUMBER-OF-SHARES-REDEEMED> 794
<SHARES-REINVESTED> 5
<NET-CHANGE-IN-ASSETS> 31,336
<ACCUMULATED-NII-PRIOR> 50
<ACCUMULATED-GAINS-PRIOR> (7,727)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 956
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,316
<AVERAGE-NET-ASSETS> 127,611
<PER-SHARE-NAV-BEGIN> 21.47
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 4.16
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.61
<EXPENSE-RATIO> .900
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 23
<NAME> PORTICO INTERMEDIATE BOND MARKET - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 136,097
<INVESTMENTS-AT-VALUE> 139,159
<RECEIVABLES> 2,657
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 141,825
<PAYABLE-FOR-SECURITIES> 1,240
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 68
<TOTAL-LIABILITIES> 1,308
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 139,176
<SHARES-COMMON-STOCK> 12,625
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 112
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,834)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,062
<NET-ASSETS> 140,517
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7,277
<OTHER-INCOME> 0
<EXPENSES-NET> 557
<NET-INVESTMENT-INCOME> 6,720
<REALIZED-GAINS-CURRENT> (417)
<APPREC-INCREASE-CURRENT> 6,232
<NET-CHANGE-FROM-OPS> 12,535
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5,060
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,722
<NUMBER-OF-SHARES-REDEEMED> 1,422
<SHARES-REINVESTED> 325
<NET-CHANGE-IN-ASSETS> 52,211
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,418)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 537
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 876
<AVERAGE-NET-ASSETS> 107,737
<PER-SHARE-NAV-BEGIN> 9.67
<PER-SHARE-NII> .62
<PER-SHARE-GAIN-APPREC> .53
<PER-SHARE-DIVIDEND> .61
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.21
<EXPENSE-RATIO> .500
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 24
<NAME> PORTICO TAX-EXEMPT INTERMEDIATE BOND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 34,023
<INVESTMENTS-AT-VALUE> 34,621
<RECEIVABLES> 698
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 35,327
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 21
<TOTAL-LIABILITIES> 21
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34,830
<SHARES-COMMON-STOCK> 2,696
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 20
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (142)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 598
<NET-ASSETS> 35,306
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,501
<OTHER-INCOME> 0
<EXPENSES-NET> 169
<NET-INVESTMENT-INCOME> 1,332
<REALIZED-GAINS-CURRENT> 8
<APPREC-INCREASE-CURRENT> 1,367
<NET-CHANGE-FROM-OPS> 2,707
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 853
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,017
<NUMBER-OF-SHARES-REDEEMED> 354
<SHARES-REINVESTED> 33
<NET-CHANGE-IN-ASSETS> 9,139
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (150)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 151
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 319
<AVERAGE-NET-ASSETS> 30,272
<PER-SHARE-NAV-BEGIN> 9.78
<PER-SHARE-NII> .44
<PER-SHARE-GAIN-APPREC> .46
<PER-SHARE-DIVIDEND> .44
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.24
<EXPENSE-RATIO> .500
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>The expense ratio is actual.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 25
<NAME> PORTICO INTERNATIONAL EQUITY - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 34,597
<INVESTMENTS-AT-VALUE> 32,752
<RECEIVABLES> 343
<ASSETS-OTHER> 159
<OTHER-ITEMS-ASSETS> 67
<TOTAL-ASSETS> 33,321
<PAYABLE-FOR-SECURITIES> 266
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 235
<TOTAL-LIABILITIES> 501
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 33,840
<SHARES-COMMON-STOCK> 1,625
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 156
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 666
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,842)
<NET-ASSETS> 32,820
<DIVIDEND-INCOME> 538
<INTEREST-INCOME> 89
<OTHER-INCOME> 0
<EXPENSES-NET> 435
<NET-INVESTMENT-INCOME> 192
<REALIZED-GAINS-CURRENT> 661
<APPREC-INCREASE-CURRENT> (1,825)
<NET-CHANGE-FROM-OPS> (972)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,691
<NUMBER-OF-SHARES-REDEEMED> 66
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 9,064
<ACCUMULATED-NII-PRIOR> 43
<ACCUMULATED-GAINS-PRIOR> (20)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 431
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 767
<AVERAGE-NET-ASSETS> 28,810
<PER-SHARE-NAV-BEGIN> 19.99
<PER-SHARE-NII> .12
<PER-SHARE-GAIN-APPREC> (.87)
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> .01
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.19
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
