OCTOBER 31, 1996
ANNUAL
REPORT
RETAIL CLASS
BALANCED
FUND
GROWTH AND
INCOME FUND
EQUITY
INDEX FUND
MIDCORE
GROWTH FUND
SPECIAL
GROWTH FUND
INTERNATIONAL
EQUITY FUND
ATTENTION PORTICO MIDCORE GROWTH FUND SHAREOWNERS:
NEW CO-MANAGERS ANNOUNCED
We are pleased to announce Matthew D'Attilio and Maya Bittar, CFA, joined Marian
Zentmyer, CFA, as co-portfolio managers of Portico MidCore Growth Fund on
December 1, 1996. Matthew began his career with Firstar Investment Research
&Management Company (FIRMCO) as an equity analyst in 1993 and has made important
contributions to large capitalization research, focusing on wireless providers,
lodging, gaming and retail companies. He will continue to provide equity
analysis in addition to his newly appointed portfolio management
responsibilities. Maya also joined FIRMCO in 1993 as an equity analyst and is
currently a co-manager of Portico Growth and Income Fund.
Matthew and Maya replace Joe Frohna and Scott Harkness, CFA. Joe, recently
promoted to assistant vice president and senior equity analyst, has chosen to
devote all of his attention to analytical research and will continue to have
close ties to the Fund. As chief investment officer, Scott Harkness, CFA, will
also continue to work closely with the Fund's co-managers.
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, includ ing 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.
TABLE OF CONTENTS
Page(s)
SHAREOWNER LETTER...................................................1-2
PORTICO BALANCED FUND...............................................4-5
PORTICO GROWTH AND INCOME FUND......................................6-7
PORTICO EQUITY INDEX FUND...........................................8-9
PORTICO MIDCORE GROWTH FUND........................................10-11
PORTICO SPECIAL GROWTH FUND........................................12-13
PORTICO INTERNATIONAL EQUITY FUND..................................14-15
STATEMENT OF ASSETS AND LIABILITIES................................16-17
STATEMENT OF CHANGES IN NET ASSETS.................................18-19
FINANCIAL HIGHLIGHTS...............................................20-24
STATEMENT OF OPERATIONS..............................................25
SCHEDULE OF INVESTMENTS............................................26-60
NOTES TO FINANCIAL STATEMENTS......................................61-66
REPORT OF INDEPENDENT ACCOUNTANTS....................................67
December 1996
DEAR SHAREOWNER:
INVESTMENT REVIEW
The stock market continued its history-making climb over the past fiscal year,
breaking the 6000 mark and leaving the question, "how far will it go?"
unanswerable. During this attractive environment for financial assets, all
Portico equity funds participated favorably, posting positive rates of return.
On the fixed-income side, the trend of interest rates was frustrating and
volatile for "interest rate anticipators" reinforcing our commitment to
"duration neutral" investing.
Given the roller coaster ride of both the equity and fixed-income markets over
the past year, we feel our growth at reasonable prices equity and structured
fixed-income management styles can provide our shareowners with a "smoother"
ride. We believe our goal of persistency, as we adhere to our twin investment
disciplines, eliminates undue surprises. And, as always, we are committed to
seeking above-average, risk-adjusted returns over complete market cycles.
The beginning of November witnessed one of the largest post-election stock
market rallies in U.S. history including the sixth biggest point increase ever -
- - and a .3% decline in long-term interest rates. With the election and the
uncertainty of how it would affect the markets behind us, it's time to focus on
what we think lies ahead.
MARKET OUTLOOK
Our economic and market outlook is predicated on the following trends:
1. The economic cycle is "muted" with LONGER, MORE MODERATE EXPANSIONS AND
SHORTER, LESS SEVERE RECESSIONS.
2. Historically, the shape of the yield curve is highly correlated with the
pace of future economic growth. The "steep" yield curve three years ago
accurately forecast 1994's pickup in economic activity while today's
"flat" difference between three-month and 10-year interest rates
suggests MORE MODERATE GROWTH AHEAD (2-3% real GDP for calendar 1997).
3. Divided government (Democratic administration and Republican congress)
improves our long standing outlook for A CYCLICALLY BALANCED FEDERAL
BUDGET AND CONTINUED SLOW GROWTH IN GOVERNMENT SPENDING.
4. The 40% of U.S. economic output (Gross Domestic Product or GDP)
representing government (24%) and healthcare (16%) will show MODERATE (2-
4%) 1997 GROWTH.
5. The "REBIRTH" OF THE AMERICAN CONSUMER, based on rising incomes, record
consumer confidence and favorable demographics, will offset weak
government and healthcare spending to produce steady GDP growth next
year.
6. Despite limited pricing power, CORPORATE PROFITABILITY IS AT RECORD
LEVELS (Source: Ed Kerschner, PaineWebber) as wage increases are more
than offset by technology-based productivity enhancements. This leads to
our forecast of 4-7% S&P 500 earnings per share growth in 1997.
7. Kept in check by global competition, INFLATION, AS MEASURED BY THE
CONSUMER PRICE INDEX (CPI), HAS AVERAGED 3% SINCE 1991 AND WE EXPECT A 2-
4% RANGE FOR 1997.
8. Since 1926, the S&P 500 STOCK INDEX HAS PROVIDED A +15.4% annual return
in years when inflation was in the 2% to 5% range. The last negative
calendar year of S&P 500 return in a moderate (2-5%) inflation
environment was 1966.
9. THE U.S. MARKETS ARE INCREASINGLY THE MARKETS OF CHOICE FOR GLOBAL
INVESTORS with foreign investment in the U.S. stock and bond markets
again on the rise.
10. With inflation running at a 3% rate, REAL, OR INFLATION-ADJUSTED,
INTEREST RATES RANGE FROM WELL OVER 2% FOR SHORT-TERM RATES TO ALMOST 4%
FOR LONG-TERM RATES.
To summarize, we believe a surprisingly resilient consumer will offset weakness
in the government and healthcare sectors allowing inflation-adjusted economic
growth to remain in its 2% to 4% trendline range. Inflation, restrained by
global competition and mitigated by technology-based productivity gains, should
remain subdued, increasing at a 2% to 4% annual rate. Moderate economic growth
and continued low inflation provide a favorable environment for financial
assets.
As always, we appreciate your confidence in the Portico Fund Family and
encourage you to read the portfolio reviews that follow.
(photo) (photo)
J. SCOTT HARKNESS, CFA MARY ELLEN STANEK, CFA
Chairman/Chief President
Investment Officer
Firstar Investment Research & Management Company
This page is intentionally left blank.
BALANCED FUND
After a strong first half of the fiscal year and a tougher latter half, Portico
Balanced Fund posted a respectable overall return of 12.3% (no-load) -- in line
with the return of the average balanced fund as measured by Morningstar, Inc.
Our equity focus within the portfolio on small- to medium-sized companies with
average market capitalizations from $100 million to $5 billion, restrained the
Fund's overall return as this segment of the market underperformed relative to
the large company dominated index of the S&P 500.
The Fund continues to emphasize common stocks for capital appreciation and
fixed-income securities for stability and current income. In early July of this
fiscal year, with the yield of the long-term U.S. Treasury bond near 7%, we made
a modest shift in our portfolio allocation, moving 5% of the portfolio from
common stocks to fixed-income investments. Current asset allocation is 57.7%
common stocks, 39.0% bonds, and 2.8% money market instruments.
The equity portion of the portfolio maintains its overweighting in consumer
cyclicals (we believe the consumer is the driving force of our economy), finance
(particularly in companies that are asset accumulators), healthcare (due to the
aging of the baby boom generation), and technology (satisfying corporate
America's need for productivity improvement).
On the fixed-income side, the Fund continues to be well-diversified by issuer
and sector. Currently, the fixed-income portion of the portfolio maintains a
significant position in corporate securities which offer a higher expected
return than U.S. Treasury securities, but also increases the credit risk of the
portfolio. However, we carefully analyze each corporate bond, making sure the
risk is appropriate for the additional marginal expected return. We have also
been able to purchase asset-backed securities (considered very high quality;
rated AAA) for the Fund at attractive yield spreads versus comparably rated
corporate debt securities.
Although the bond market continues to be volatile, our structured fixed-income
managment style provides the opportunity for consistent bond fund performance.
Our ability to define, measure and control bond fund risks translates into
"what you see is what you get" for our fixed-income investors. We remain
optimistic that our fixed-income performance will continue to be consistent in
all market environments.
Overall, we believe our research-driven equity and fixed-income investment
strategies will leave the Fund well-positioned for the moderate, low inflation
environment we anticipate for 1997.
We appreciate your continued support and confidence in Portico Balanced Fund.
(photo) (photo)
MARIAN E. ZENTMYER, TERESA R. WESTMAN, CFA
CFA, CFP
PORTFOLIO MANAGER PROFILE
- -------------------------
MARIAN E. ZENTMYER, CFA, CFP, Senior Vice President and Senior Portfolio Manager
of Firstar Investment Research & Management Company (FIRMCO) AND TERESA R.
WESTMAN, CFA, Senior Portfolio Manager co-manage the Fund, Teresa since its
inception on March 30, 1992, and Marian since June 19, 1996. Marian has been
with Firstar since 1982 and has 18 years of investment management experience.
She received her BAfrom Stanford University in 1978. Teresa has been with
Firstar since 1987 and has nine years of investment management experience.
Teresa received her BA from Augustana College in 1985 and her MBA from the
University of Chicago in 1991. Marian is a Chartered Financial Analyst and a
Certified Financial Planner. Teresa is a Chartered Financial Analyst.
3/30/92 10/92 10/93 10/94 10/95 10/96
PORTICO BALANCED
FUND - A - NO LOAD $10,000 $10,372 $11,771 $11,662 $13,941 $15,656
PORTICO BALANCED
FUND - A - LOAD<F1> $ 9,600 $ 9,958 $11,302 $11,197 $13,386 $15,032
LEHMAN BROTHERS
GOV'T./CORP.
BOND INDEX $10,000 $10,747 $12,212 $11,645 $13,527 $14,256
RUSSELL MIDCAP/TM
INDEX $10,000 $10,621 $12,936 $13,240 $16,325 $19,533
S&P 500 STOCK
INDEX $10,000 $10,548 $12,124 $12,593 $15,923 $19,760
This chart assumes an initial investment of $10,000 made on 3/30/92 (inception).
Per form 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, 1996
Since Inception
1 Year 3 Years 3/30/92
PORTICO BALANCED
FUND - A - NO LOAD 12.3 10.0 10.3
PORTICO BALANCED
FUND - A - LOAD<F1> 7.8 8.5 9.3
LEHMAN BROTHERS
GOV'T./CORP. BOND INDEX<F2> 5.4 5.3 8.0
RUSSELL MIDCAPTM INDEX<F3> 19.7 14.7 15.7
S&P 500 STOCK INDEX<F4> 24.1 17.7 16.0
<F1> Reflects maximum sales charge of 4.00%.
<F2> 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.
<F3> 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.
<F4> 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 EQUITY HOLDINGS 10/31/96
VENCOR, INC. 1.8%
TYCO INTERNATIONAL LTD. 1.6%
MBNACORPORATION 1.5%
COLUMBIA/HCA HEALTHCARE CORPORATION 1.5%
CUCINTERNATIONAL, INC. 1.3%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/96
$158,449,382
GROWTH AND INCOME FUND
Portico Growth and Income Fund continued its strong performance through the
remainder of fiscal 1996. For the twelve months ended October, the Fund's return
of 26.6% (no-load) outperformed the Standard & Poor's 500 Stock Index (+24.1%),
the Lipper Growth & Income Fund Index (+21.4%), and the Wilshire Top 750 Index
(+22.8%). The Fund's strong relative performance is attributed to favorable
sector exposure. The portfolio was overweighted and outperformed in both capital
goods and finance -- two of the strongest sectors of the S&P 500. The Fund's
best-performing companies in the capital goods sector during this time period
included Diebold, Inc. (+68.0%) and Tyco International, Ltd. (+62.0%). In the
finance sector, Federal National Mortgage Association (+30.0%), Norwest
Corporation (+48.0%), the Bank of New York (+35.0%), and MBIA, Inc. (+30.0%)
were large contributors to the Fund's strong performance.
Given our expectation that the pace of economic activity would slow as the year
advanced, we took profits in companies that we believed would be subject to a
downward revision in earnings estimates, such as Hercules, Alco Standard, and
Belden. We also took profits in several retailers that responded well to
stronger than expected consumer spending in the first part of the year (Intimate
Brands, Inc., Gap Stores, May Department Stores, and Albertson's, Inc.). We took
gains in stocks where prices met our targets (Rockwell International and EDS)
and took our lumps where business fundamentals deteriorated (AT&T Corporation,
Browning Ferris and H&R Block). The mid-summer correction, which took the
Standard & Poor's Index down 10%, provided an opportunity for us to initiate
purchases in companies with good historical earnings growth and that fit into
our current investment themes, including Hewlett Packard Company, Liz Claiborne,
Inc., Tupperware Corporation, and Betz Laboratories, Inc.
A major portfolio theme continues to be on the "graying of America". Beginning
in 1997, statisticians estimate 11,000 baby boomers will turn 50 years old
everyday. This has major implications for our economy, especially in regard to
our nation's delivery and use of healthcare. Several positions in our portfolio
should benefit from this major demographic shift. For example, CVS, a drug
retailer with the highest market share in the majority of the markets it serves,
should benefit as healthcare insurance transitions from indemnity to managed
care. Smith Kline Beecham, Pfizer, Inc., Allergan, Inc., and Pharmacia & Upjohn,
Inc. should also benefit from the average person's increased use of prescription
drugs beginning at age 50. In addition, the use of prescription drugs in lieu of
surgery is seen as a cost effective method of restraining overall healthcare
costs. Other significant portfolio holdings in the healthcare sector include
Aetna Life and Casualty Corporation (now one of the nation's largest managed
care providers following their merger with U.S. Healthcare) and Vencor, a
rapidly growing provider of long-term care. See the schedule of investments on
page 30 for full portfolio composition.
Overall, we believe Portico Growth and Income Fund is well positioned for the
moderate growth, low inflation environment we envision for 1997. Thank you for
your continued support.
(photo) (photo)
MARIAN E. ZENTMYER, MAYA K. BITTAR, CFA
CFA, CFP
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 18 years of investment management experience. She received
her BA from Stanford University in 1978. Maya has been with Firstar since 1993
and has five years of investment management experience. She received her BBA in
1985 and her MBA and MS in 1991 from 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 10/96
<S> <C> <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 $21,870
PORTICO GROWTH AND
INCOME FUND - A - LOAD<F5> $ 9,600 $8,933 $11,223 $11,875 $13,054 $13,294 $16,585 $20,999
WILSHIRE TOP 750 INDEX $10,000 $8,722 $11,859 $13,063 $15,055 $15,534 $19,725 $24,218
S&P 500 STOCK INDEX $10,000 $8,855 $11,821 $12,999 $14,941 $15,519 $19,622 $24,351
LIPPER GROWTH &INCOME INDEX $10,000 $8,612 $11,512 $12,537 $14,982 $15,455 $18,589 $22,576
LIPPER EQUITY INCOME INDEX $10,000 $8,810 $11,480 $12,635 $15,148 $15,475 $18,250 $21,876
</TABLE>
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Per formance 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, 1996
Since Inception
1 Year 3 Years 5 Years 12/29/89
PORTICO GROWTH AND
INCOME FUND - A - NO LOAD 26.6 17.2 13.4 12.1
PORTICO GROWTH AND
INCOME FUND - A - LOAD<F5> 21.6 15.6 12.4 11.4
WILSHIRE TOP 750 INDEX<F6> 22.8 17.2 15.4 13.8
S&P 500 STOCK INDEX<F7> 24.1 17.7 15.6 13.9
LIPPER GROWTH &INCOME INDEX<F8> 21.4 14.6 14.4 12.6
LIPPER EQUITY INCOME INDEX<F8> 19.9 13.0 13.8 12.1
<F5> Reflects maximum sales charge of 4.00%.
<F6> 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.
<F7> 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.
<F8> 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% 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 10/31/96
TYCO INTERNATIONAL, LTD. 2.9%
DIEBOLD, INC. 2.5%
PFIZER, INC. 2.4%
RELIASTAR FINANCIAL CORPORATION 2.4%
NORWEST CORPORATION 2.3%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/96
$298,197,598
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 Index in proportion with their relative capitalization and
sector weightings.
Portico Equity Index Fund's net asset value of $49.40 on October 31, 1996
represents a total return of 23.4% (no-load) for the twelve months then ended,
which was comparable to the S&P 500's return of 24.1% over the same period.
As always, we believe that by applying a capitalization weighting and sector
balancing technique that matches the structure of the S&P 500, the Fund should
reasonably track the performance of the index.
(photo)
DANIEL A. TRANCHITA, CFA
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 eight years of
investment management experience. He received his BA in 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 10/96
<S> <C> <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 $23,520
PORTICO EQUITY INDEX
FUND - A - LOAD<F9> $ 9,600 $8,501 $11,297 $12,355 $14,059 $14,552 $18,305 $22,581
S&P 500 STOCK INDEX $10,000 $8,855 $11,821 $12,999 $14,941 $15,519 $19,622 $24,351
</TABLE>
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Per formance 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, 1996
Since Inception
1 Year 3 Years 5 Years 12/29/89
PORTICO EQUITY INDEX
FUND - A - NO LOAD 23.4 17.1 14.9 13.3
PORTICO EQUITY INDEX
FUND - A - LOAD<F9> 18.4 15.5 13.9 12.6
S&P 500 STOCK INDEX<F10> 24.1 17.7 15.6 13.9
<F9> Reflects maximum sales charge of 4.00%.
<F10> 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% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies 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 10/31/96
GENERAL ELECTRIC 2.9%
COCA-COLA COMPANY 2.3%
EXXON CORPORATION 2.0%
INTEL CORPORATION 1.7%
MERCK &COMPANY, INC. 1.7%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/96
$251,728,435
MIDCORE GROWTH FUND
During fiscal year 1996, Portico MidCore Growth Fund's return of 18.5% (no-load)
performed well versus the Standard & Poor's 400 MidCap and the Lipper MidCap
Stock Index which returned 17.4% and 15.0%, respectively. However, the Fund
trailed the return of the Standard & Poor's 500 Stock Index at 24.1% and the
return of the Wilshire Top 750 Index at 22.8%. Despite strong performance in a
number of sectors, including capital goods, finance, and energy, our
underperformance in the technology sector (which was a strong sector for the
overall market) prevented us posting better relative results.
In the capital goods sector, a 62.0% performance from one of our largest
holdings, Tyco International, Ltd., boosted returns. In the finance area, our
emphasis on consumer credit helped drive strong results with MBNA Corporation
(+50.0%), First USA, Inc. (+25.0%), Green Tree Acceptance (+33.0%), and
Associates First Capital (+19.0%). However, since we believe the economy is
beginning to slow and the credit cycle is in its later stages, we have started
to take profits in this sector of the portfolio.
We started the year with only 1% of the portfolio committed to the energy
sector. However, we increased our weighting throughout the year by adding
exposure to the oil service sector. Advances in technology have made it possible
for oil companies to drill and develop oil fields at a much lower cost per
barrel than in the past. We believe this increases the demand for service
providers. Our 8% weighting in energy includes holdings in Diamond Offshore
Drilling, Inc., Transocean Offshore, Inc. and Tidewater, Inc.
A growing service sector and better inventory management has led to a "muted"
business cycle with longer, more moderate expansion and fewer, less severe
recessions than in the past. The driving force in a muted cycle is the consumer.
We continue to overweight the portfolio in this sector with particular emphasis
on the "leisure industry." As the largest demographic segment of our
population, the post World War II baby boomers, reach age 50, we believe more
and more time -- and money -- will be spent on leisure time activities.
Portfolio holdings in this sector include Mirage Resorts, Inc. and Carnival
Corporation.
Finally, corporate America's drive to increase productivity through technology
provides tremendous growth opportunities for software and hardware companies. We
correctly over-weighted the technology sector but due to poor stock selection we
underperformed. Going forward, our focus is on companies that are leaders in
their industries and that generate a major portion of their revenues on a
recurring basis, such as Electronic Data Systems Corporation, First Data
Corporation, SunGard Data Systems, Inc. and Ceridian Corporation. See the
schedule of investments on page 39 for full portfolio composition.
We believe the portfolio is well-positioned for 1997 and appreciate your
continued confidence and support.
(photo) (photo) (photo)
MARIAN E. ZENTMYER, MAYA K. BITTAR, CFA MATTHEW D'ATTILIO
CFA, CFP
PORTFOLIO MANAGER PROFILE
- -------------------------
MARIAN E. ZENTMYER, CFA, CFP, Senior Vice President and Senior Portfolio Manager
of Firstar Investment Research & Management Company (FIRMCO), MAYA BITTAR, CFA,
Vice President and Portfolio Manager and MATTHEW D'ATTILIO, Assistant Vice
President and Portfolio Manager, co-manage the Fund, Marian since June 19, 1996
and Maya and Matt since December 1, 1996. Marian has been with Firstar since
1982 and has 18 years of investment management experience. She received her BA
from Stanford University in 1978. Maya has been with Firstar since 1993 and has
five years of investment management experience. She received her BBA in 1985 and
her MBA and MS in 1991 from the University of Wisconsin. Matt joined Firstar in
1993 as an equity analyst. He received his BA from Bowdoin College in 1993.
Marian is a Chartered Financial Analyst and a Certified Financial Planner. Maya
is a Chartered Financial Analyst and Matt is presently pursuing the Chartered
Financial Analyst designation.
12/29/92 10/93 10/94 10/95 10/96
PORTICO MIDCORE GROWTH
FUND - A - NO LOAD $10,000 $10,753 $10,813 $12,901 $15,291
PORTICO MIDCORE GROWTH
FUND - A - LOAD<F11> $ 9,600 $10,324 $10,382 $12,387 $14,682
WILSHIRE TOP 750 INDEX $10,000 $10,951 $11,299 $14,348 $17,616
S&P 500 STOCK INDEX $10,000 $10,981 $11,406 $14,422 $17,898
This chart assumes an initial investment of $10,000 made on 12/29/92
(inception). Per formance 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, 1996
Since Inception
1 Year 3 Years 12/29/92
PORTICO MIDCORE GROWTH
FUND - A - NO LOAD 18.5 12.5 11.7
PORTICO MIDCORE GROWTH
FUND - A - LOAD<F11> 13.8 10.9 10.5
WILSHIRE TOP 750 INDEX<F12> 22.8 17.2 15.9
S&P 500 STOCK INDEX<F13> 24.1 17.7 16.4
<F11> Reflects maximum sales charge of 4.00%.
<F12> 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.
<F13> 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 class)
TOP 5 HOLDINGS 10/31/96
TYCO INTERNATIONAL, LTD. 4.6%
COLUMBIA/HCA HEALTHCARE CORPORATION 3.7%
MBNACORPORATION 3.6%
CUCINTERNATIONAL, INC. 3.6%
TIDEWATER, INC. 3.4%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/96
$171,928,764
SPECIAL GROWTH FUND
Portico Special Growth gained 12.3% (no-load) for the fiscal year ended October
31, 1996, lagging the large company dominated S&P 500's 24.1% return. In
addition, Special Growth's significant healthcare and technology weightings
relative to the midcap stock indices caused it to lag the Wilshire MidCap 750's
17.9% return over the same time period. However, the longer term performance of
Portico Special Growth is above average. Specifically, the Fund's average annual
return of 15.2% since inception on December 28, 1989 exceeds both the S&P 500
(+13.9%) and the Wilshire MidCap 750 (+13.6%) for the same time period as the
chart at right shows.
Over the fiscal year, we increased technology stocks as a percentage of the Fund
from 14% to 21% and healthcare-related issues from 21.5% to 23% -- taking our
exposure in these two groups to approximately two times that of the market
averages. By contrast, we reduced the Fund's exposure to consumer cyclicals
(retail stocks) due to their significant stock appreciation. These sector shifts
reflect our primary investment disciplines: first, we lean against
conventionalism when underlying company fundamentals are improving and exceed
consensus forecast; second, our ongoing relative valuation analysis prompts us
to "prune back" positions as the underlying growth potential is reflected in
the current price-earnings multiple.
During fiscal 1996, ADC Telecommunications, Synopsys, Inc., Altera Corporation,
Jones Apparel Group, Inc., Hollywood Entertainment Corporation, Dollar General
Corporation, Charles Schwab Corporation, and AMBAC, Inc. provided the highest
returns for shareowners. Our worst performers were Healthsource, Department 56,
and Biomet -- all of which have been eliminated from the Fund based on
deteriorating business prospects. See the schedule of investments on page 41 for
full portfolio composition.
For 1997, Special Growth Fund's 17.5 times price-earnings multiple (a slight
discount to the Wilshire MidCap and the S&P 500 indices) is at the lower end of
our relative range. By contrast, with three-fourths of a calendar year complete,
Portico Special Growth Fund's earnings gains are well above average at 26.3%
verses 8.3% for the S&P 500 and we contend our overall relationship between the
absolute price-earnings multiple of the Fund and our historic-perspective
earnings outlook is above average. Accordingly we are fully invested.
We appreciate your continued confidence in Portico Special Growth Fund.
(photo) (photo) (photo)
J. SCOTT HARKNESS, CFA MARK D. WESTMAN, TODD M. KRIEG
CFA, CPA
PORTFOLIO MANAGER PROFILE
- -------------------------
J. SCOTT HARKNESS, CFA, Chief Investment Officer of Firstar Investment Research
& Management Company (FIRMCO), MARK D. WESTMAN, CFA, CPA, Vice President and
Portfolio Manager, and TODD M. KRIEG, CFA, Vice President and Portfolio Manager
manage the Fund - Scott since its inception on December 28, 1989, Mark since
January 1994 and Todd since September 1994. Scott has been with Firstar for 17
years and has more than 18 years of investment management experience. He
received his BA from the University of Wisconsin in 1977. 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
four years and received his BA from Williams College in 1983 and a JD from
Georgetown University in 1989. Scott, Mark, and Todd are all Chartered Financial
Analysts.
<TABLE>
<CAPTION>
12/28/89 10/90 10/91 10/92 10/93 10/94 10/95 10/96
<S> <C> <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 $26,278
PORTICO SPECIAL GROWTH
FUND - A - LOAD<F14> $ 9,600 $8,596 $13,774 $14,994 $17,416 $17,898 $22,474 $25,231
WILSHIRE MIDCAP 750 INDEX $10,000 $7,606 $11,627 $12,910 $16,167 $16,680 $20,303 $23,943
S&P 500 STOCK INDEX $10,000 $8,855 $11,821 $12,999 $14,941 $15,519 $19,622 $24,351
</TABLE>
This chart assumes an initial investment of $10,000 made on 12/28/89
(inception). Per form 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, 1996
Since Inception
1 Year 3 Years 5 Years 12/28/89
PORTICO SPECIAL GROWTH
FUND - A - NO LOAD 12.3 13.2 12.9 15.2
PORTICO SPECIAL GROWTH
FUND - A - LOAD<F14> 7.8 11.6 12.0 14.5
WILSHIRE MIDCAP 750 INDEX<F15> 17.9 14.0 15.5 13.6
S&P 500 STOCK INDEX<F16> 24.1 17.7 15.6 13.9
<F14> Reflects maximum sales charge of 4.00%.
<F15> 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.
<F16> 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 10/31/96
THE CHARLES SCHWAB CORPORATION 3.0%
HEALTH MANAGEMENT ASSOCIATES, INC. 2.9%
VENCOR, INC. 2.7%
DOLLAR GENERAL CORPORATION 2.3%
ATMEL CORPORATION 2.3%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/96
$594,016,179
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 unique approach to investing in comparison 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.
Country allocations are 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, 1996, the International Equity Fund owned 795 companies located
throughout Europe and the Pacific Basin. State Street Global Advisors, with over
16 years of international investing experience and $52 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.
Over the past fiscal year, foreign stocks declined overall as respectable
returns in Europe were outweighed by losses from a weak currency in Japan. The
stronger U.S. dollar had a negative effect on the Fund's performance over this
time period. As a result, the Fund index performed when compared to the EAFE
Index.
Going forward, we believe long-term performance of small- to medium-sized
international companies will provide higher total returns than investments in
larger international companies that make up the EAFE Index. We continue to
believe investing internationally is an effective strategy to diversify your
portfolio while offering the potential for attractive returns over the long
term.
Investments in foreign securities involve some risk not associated with
investments in domestic securities such as foreign currency fluctuations, and
economic and political risks.
(photo)
DANIEL A. TRANCHITA, CFA
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 eight
years of investment management experience. He received his BA in 1987 and his
MBA in 1989 from Marquette University. Dan is a Chartered Financial Analyst.
4/28/94 10/94 10/95 10/96
PORTICO INTERNATIONAL
EQUITY FUND - A - NO LOAD $10,000 $ 9,995 $ 9,600 $10,363
PORTICO INTERNATIONAL
EQUITY FUND - A - LOAD<F17> $ 9,600 $ 9,597 $ 9,218 $ 9,951
EAFE INDEX $10,000 $10,429 $10,390 $11,478
GDP EAFE INDEX $10,000 $10,103 $10,154 $11,239
This chart assumes an initial investment of $10,000 made on 4/28/94 (inception).
Per form 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, 1996
Since Inception
1 Year 4/28/94
PORTICO INTERNATIONAL
EQUITY FUND - NO LOAD 8.0 1.4
PORTICO INTERNATIONAL
EQUITY FUND - LOAD<F17> 3.6 (0.2)
GDPEAFE INDEX<F18> 10.7 4.8
EAFE INDEX<F19> 10.5 5.7
<F17> Reflects maximum sales charge of 4.00%.
<F18> 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.
<F19> 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 no longer applies 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 10/31/96
JAPAN 28.7%
GERMANY 18.4%
FRANCE 11.6%
GREAT BRITAIN 8.9%
ITALY 7.6%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/96
$46,950,663
STATEMENT OF ASSETS AND LIABILITIES
(Amounts in thousands, except per share data)
October 31, 1996
BALANCED GROWTH AND INCOME EQUITY INDEX
FUND FUND FUND
------- ---------------- ------------
ASSETS:
Investments, at value (cost
$132,152, $226,286, $167,340,
$121,551, $488,692 and
$47,028, respectively) $157,573 $295,035 $251,066
Foreign currency (cost $44) - - -
Cash - - -
Income receivable 937 722 419
Capital shares sold 37 383 441
Receivable for securities sold 742 2,862 1,057
Other assets 8 8 11
-------- -------- --------
Total Assets 159,297 299,010 252,994
-------- -------- --------
LIABILITIES:
Payable for securities purchased 708 527 1,128
Capital shares redeemed 1 9 3
Payable to affiliates 113 240 98
Accrued expenses and other
liabilities 26 36 37
-------- -------- --------
Total Liabilities 848 812 1,266
-------- -------- --------
NET ASSETS $158,449 $298,198 $251,728
-------- -------- --------
NET ASSETS CONSIST OF:
Capital stock $123,552 $203,818 $164,985
Undistributed net
investment income (loss) 367 507 382
Undistributed accumulated
net realized gains (losses) on:
Investments 9,109 25,124 2,493
Unrealized net appreciation
(depreciation) on:
Investments 25,421 68,749 83,726
Futures contracts - - 142
Foreign currency - - -
-------- -------- --------
Total Net Assets $158,449 $298,198 $251,728
======== ======== ========
SERIES A:
Net assets $ 29,034 $ 71,310 $39,656
Shares authorized ($.0001
par value) 500,000 500,000 500,000
Shares issued and outstanding 1,038 2,156 803
Net asset value and redemption
price per share <F20> $27.98 $33.07 $49.40
======== ======== ========
Maximum offering price
per share <F20> $29.15 $34.45 $51.46
======== ======== ========
SERIES INSTITUTIONAL:
Net assets $129,415 $226,888 $212,072
Shares authorized ($.0001
par value) 500,000 500,000 500,000
Shares issued and outstanding 4,623 6,858 4,291
Net asset value, redemption
price and offering price
per share <F20> $27.99 $33.08 $49.43
======== ======== ========
STATEMENT OF ASSETS AND LIABILITIES (continued)
(Amounts in thousands, except per share data)
October 31, 1996
MIDCORE SPECIAL INTERNATIONAL
GROWTH GROWTH EQUITY
FUND FUND FUND
------- ------- ------------
ASSETS:
Investments, at value (cost
$132,152, $226,286, $167,340,
$121,551, $488,692 and
$47,028, respectively) $172,110 $594,350 $ 46,765
Foreign currency (cost $44) - - 45
Cash - - 110
Income receivable 96 287 80
Capital shares sold 63 106 -
Receivable for securities sold 670 5,839 -
Other assets 7 6 83
-------- -------- --------
Total Assets 172,946 600,588 47,083
-------- -------- --------
LIABILITIES:
Payable for securities purchased 669 5,961 -
Capital shares redeemed - 56 -
Payable to affiliates 145 496 52
Accrued expenses and other
liabilities 203 59 80
-------- -------- --------
Total Liabilities 1,017 6,572 132
-------- -------- --------
NET ASSETS $171,929 $594,016 $ 46,951
======== ======== ========
NET ASSETS CONSIST OF:
Capital stock $114,000 $413,010 $46,013
Undistributed net investment
income (loss) (2) (1) 207
Undistributed accumulated net
realized gains (losses) on:
Investments 7,372 75,349 994
Unrealized net appreciation
(depreciation) on:
Investments 50,559 105,658 (264)
Futures contracts - - -
Foreign currency - - 1
-------- -------- --------
Total Net Assets $171,929 $594,016 $ 46,951
======== ======== ========
SERIES A:
Net assets $ 16,636 $111,159 $ 3,769
Shares authorized ($.0001
par value) 500,000 500,000 500,000
Shares issued and outstanding 549 2,686 186
Net asset value and redemption
price per share <F20> $30.32 $41.38 $20.21
======== ======== ========
Maximum offering price
per share <F20> $31.58 $43.10 $21.05
======== ======== ========
SERIES INSTITUTIONAL:
Net assets $155,293 $482,857 $ 43,182
Shares authorized ($.0001
par value) 500,000 500,000 500,000
Shares issued and outstanding 5,104 11,613 2,130
Net asset value, redemption
price and offering price
per share <F20> $30.43 $41.58 $20.27
======== ======== ========
<F20> Amounts may not recalculate due to rounding.
See notes to the financial statements.
STATEMENT OF CHANGES IN NET ASSETS
(Amounts in thousands)
BALANCED FUND GROWTH AND INCOME FUND
--------------------- ----------------------
Year ended October 31, Year ended October 31,
--------------------- ----------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
Net investment income (loss) $ 2,939 $ 2,444 $ 4,076 $ 2,975
Net realized gain (loss) on:
Investments 9,418 3,757 25,182 8,861
Foreign currency - - - -
Change in unrealized
appreciation (depreciation)
on:
Investments 4,478 14,596 29,232 28,643
Foreign currency - - - -
------- ------- ------- -------
Net increase (decrease) in net
assets resulting from
operations 16,835 20,797 58,490 40,479
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold 65,662 51,996 83,323 39,149
Shares issued to owners in
reinvestment of dividends 5,339 2,325 11,607 6,778
Shares redeemed (50,314) (41,011) (47,816) (38,029)
------- ------- ------- -------
Net increase (decrease) 20,687 13,310 47,114 7,898
------- ------- ------- -------
DISTRIBUTIONS TO SHAREOWNERS <F21>:
From net investment income - (540) - (925)
From net realized gains - - - (4,244)
------- ------- ------- -------
- (540) - (5,169)
------- ------- ------- -------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS <F21>:
From net investment income (449) (285) (724) (374)
From net realized gains (485) - (1,827) -
------- ------- ------- -------
(934) (285) (2,551) (374)
------- ------- ------- -------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS <F21>:
From net investment income (2,354) (1,555) (3,021) (1,711)
From net realized gains (2,169) - (7,010) -
------- ------- ------- -------
(4,523) (1,555) (10,031) (1,711)
------- ------- ------- -------
TOTAL INCREASE IN NET ASSETS 32,065 31,727 93,022 41,123
NET ASSETS:
Beginning of year 126,384 94,657 205,176 164,053
------- ------- ------- -------
End of year (including
undistributed net
investment income
(loss) of $367, $226,
$507, $175, $382, $245,
$(2), $(1), $(1), $0,
$207 and $156,
respectively) $158,449 $126,384 $298,198 $205,176
======= ======= ======= =======
STATEMENT OF CHANGES IN NET ASSETS (continued)
(Amounts in thousands)
EQUITY INDEX FUND MIDCORE GROWTH FUND
--------------------- ----------------------
Year ended October 31, Year ended October 31,
--------------------- ----------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
Net investment income (loss) $ 4,423 $ 2,949 $ (103) $ 145
Net realized gain (loss) on:
Investments 2,908 1,377 12,442 2,657
Foreign currency - - - -
Change in unrealized
appreciation (depreciation)
on:
Investments 38,137 26,047 15,736 20,823
Foreign currency - - - -
------- ------- ------- -------
Net increase (decrease)
in net assets resulting
from operations 45,468 30,373 28,075 23,625
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold 113,777 43,586 50,218 49,755
Shares issued to owners in
reinvestment of dividends 5,332 2,893 - 222
Shares redeemed (63,944) (24,547) (50,897) (42,006)
------- ------- ------- -------
Net increase (decrease) 55,165 21,932 (679) 7,971
------- ------- ------- -------
DISTRIBUTIONS TO SHAREOWNERS <F21>:
From net investment income - (731) - (137)
From net investment income - (201) - -
------- ------- ------- -------
- (932) - (137)
------- ------- ------- -------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS <F21>:
From net investment income (495) (226) - (1)
From net realized gains (165) - - -
------- ------- ------- -------
(660) (226) - (1)
------- ------- ------- -------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS <F21>:
From net investment income (3,791) (1,941) - (122)
From net realized gains (1,223) - - -
------- ------- ------- -------
(5,014) (1,941) - (122)
------- ------- ------- -------
TOTAL INCREASE IN NET ASSETS 94,959 49,206 27,396 31,336
NET ASSETS:
Beginning of year 156,769 107,563 144,533 113,197
------- ------- ------- -------
End of year (including
undistributed net
investment income
(loss) of $367, $226,
$507, $175, $382, $245,
$(2), $(1), $(1), $0,
$207 and $156,
respectively) $251,728 $156,769 $171,929 $144,533
======= ======= ======= =======
STATEMENT OF CHANGES IN NET ASSETS (continued)
(Amounts in thousands)
INTERNATIONAL
SPECIAL GROWTH FUND EQUITY FUND
--------------------- ---------------------
Year ended October 31, Year ended October 31,
---------------------- ----------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
Net investment income (loss) $ (841) $ (148) $ 259 $ 165
Net realized gain (loss) on:
Investments 77,360 57,101 1,006 463
Foreign currency - - (33) 225
Change in unrealized
appreciation (depreciation)
on:
Investments (11,614) 49,078 1,581 (1,826)
Foreign currency - - (2) 1
------- ------- ------- -------
Net increase (decrease)
in net assets resulting
from operations 64,905 106,031 2,811 (972)
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold 166,347 130,385 17,724 12,055
Shares issued to owners in
reinvestment of dividends 52,218 2,330 753 59
Shares redeemed (153,470) (110,262) (6,306) (2,015)
------- ------- ------- -------
Net increase (decrease) 65,095 22,453 12,171 10,099
------- ------- ------- -------
DISTRIBUTIONS TO SHAREOWNERS <F21>:
From net investment income - - - (55)
From net investment income - (2,526) - (8)
------- ------- ------- -------
- (2,526) - (63)
------- ------- ------- -------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS <F21>:
From net investment income - - (6) -
From net realized gains (9,690) - (34) -
------- ------- ------- -------
(9,690) - (40) -
------- ------- ------- -------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS <F21>:
From net investment income - - (174) -
From net realized gains (47,791) (45) (637) -
------- ------- ------- -------
(47,791) (45) (811) -
------- ------- ------- -------
TOTAL INCREASE IN NET ASSETS 72,519 125,913 14,131 9,064
NET ASSETS:
Beginning of year 521,497 395,584 32,820 23,756
------- ------- ------- -------
End of year (including
undistributed net
investment income
(loss) of $367, $226,
$507, $175, $382, $245,
$(2), $(1), $(1), $0,
$207 and $156,
respectively) $594,016 $521,497 $46,951 $32,820
======= ======= ======= =======
<F21> 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, 1996.
See notes to the financial statements.
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
BALANCED FUND
--------------------------------------------------------------------------------------------------
Year ended Year ended Year ended March 30,
October 31, 1996 October 31, 1995<F25> October 31, 1992<F22>
----------------------------- ----------------------------- ---------------- through
Series A Series Institutional Series A Series Institutional 1994 1993 Oct. 31, 1992
-------- -------------------- -------- -------------------- ---- ---- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $25.89 $25.90 $22.10 $22.10 $22.76 $20.49 $20.00
Income from investment operations:
Net investment income 0.47<F30> 0.55<F30> 0.49 0.53 0.44 0.47 0.28
Net realized and unrealized
gains (losses) on
securities 2.64 2.62 3.77 3.78 (0.66) 2.27 0.44
------ ------ ------ ------ ------ ------ ------
Total from investment
operations 3.11 3.17 4.26 4.31 (0.22) 2.74 0.72
------ ------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net
investment income (0.47) (0.53) (0.47) (0.51) (0.44) (0.47) (0.23)
Distributions from
capital gains (0.55) (0.55) - - - - -
------ ------ ------ ------ ------ ------ ------
Total distributions (1.02) (1.08) (0.47) (0.51) (0.44) (0.47) (0.23)
------ ------ ------ ------ ------ ------ ------
Net asset value, end
of period $27.98 $27.99 $25.89 $25.90 $22.10 $22.76 $20.49
====== ====== ====== ====== ====== ====== ======
Total return <F26><F27> 12.30% 12.56% 19.55% 19.79% (0.93)% 13.49% 3.72%
Supplemental data and ratios:
Net assets, in thousands,
end of period $29,034 $129,415 $21,832 $104,552 $94,657 $82,099 $45,653
Ratio of net expenses
to average net
assets <F28> 1.00% 0.75% 0.94% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment
income to average net
assets <F28> 1.80% 2.05% 2.05% 2.24% 2.03% 2.24% 2.48%
Portfolio turnover
rate <F29> 63.91% 63.91% 61.87% 61.87% 59.77% 71.60% 29.04%
Average commission
rate paid <F29> $0.0581 $0.0581
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
GROWTH AND INCOME FUND
----------------------------------------------------------------------------------------
Year ended Year ended
October 31, 1996 October 31, 1995<F25> Year ended October 31,
----------------------------- ----------------------------- ------------------------------
Series A Series Institutional Series A Series Institutional 1994 1993<F23> 1992
-------- ------------------- -------- ------------------- ---- -------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $27.62 $27.63 $23.09 $23.09 $23.70 $22.27 $21.72
Income from investment operations:
Net investment income 0.42<F30> 0.50<F30> 0.37 0.42 0.43 0.56 0.69
Net realized and unrealized
gains (losses) on
securities 6.61 6.61 5.14 5.14 (0.03) 1.63 0.56
------ ------ ------ ------ ------ ------ ------
Total from investment
operations 7.03 7.11 5.51 5.56 0.40 2.19 1.25
------ ------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net
investment income (0.39) (0.47) (0.38) (0.42) (0.42) (0.57) (0.70)
Distributions from
capital gains (1.19) (1.19) (0.60) (0.60) (0.59) (0.19) -
------ ------ ------ ------ ------ ------ ------
Total distributions (1.58) (1.66) (0.98) (1.02) (1.01) (0.76) (0.70)
------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $33.07 $33.08 $27.62 $27.63 $23.09 $23.70 $22.27
====== ====== ====== ====== ====== ====== ======
Total return <F26><F27> 26.62% 26.90% 24.75% 25.00% 1.84% 9.93% 5.82%
Supplemental data and ratios:
Net assets, in thousands,
end of period $71,310 $226,888 $42,424 $162,752 $164,053 $160,704 $135,713
Ratio of net expenses
to average net
assets <F28> 1.15% 0.90% 1.09% 0.90% 0.90% 0.88% 0.75%
Ratio of net investment
income to average
net assets <F28> 1.42% 1.67% 1.51% 1.70% 1.89% 2.44% 3.16%
Portfolio turnover
rate <F29> 51.37% 51.37% 47.85% 47.85% 56.85% 86.24% 31.25%
Average commission
rate paid <F29> $0.0573 $0.0573
<FN>
<F22> Commencement of operations.
<F23> Effective June 17, 1993, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F24> Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F25> 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.
<F26> Not annualized 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.
<F27> The total return does not reflect the 4% front-end sales charge for Series A.
<F28> Annualized 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.
<F29> Portfolio turnover and average commission rate paid is calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
<F30> Net investment income per share is calculated using ending balances prior to consideration of adjustments for permanent book
and tax differences.
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
EQUITY INDEX FUND
--------------------------------------------------------------------------------------------------
Year ended Year ended
October 31, 1996 October 31, 1995<F34> Year ended October 31,
------------------------------ ----------------------------- --------------------------------
Series A Series Institutional Series A Series Institutional 1994 1993 1992<F33>
-------- -------------------- -------- -------------------- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $41.07 $41.08 $33.41 $33.41 $33.04 $29.72 $27.87
Income from investment operations:
Net investment income 0.77<F39> 0.91<F39> 0.70 0.76 0.77 0.75 0.73
Net realized and unrealized
gains (losses) on
securities 8.69 8.68 7.70 7.71 0.35 3.32 1.86
------ ------ ------ ------ ------ ------ ------
Total from investment
operations 9.46 9.59 8.40 8.47 1.12 4.07 2.59
------ ------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net
investment income (0.78) (0.89) (0.68) (0.74) (0.75) (0.75) (0.73)
Distributions from
capital gains (0.35) (0.35) (0.06) (0.06) - - (0.01)
------ ------ ------ ------ ------ ------ ------
Total distributions (1.13) (1.24) (0.74) (0.80) (0.75) (0.75) (0.74)
------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $49.40 $49.43 $41.07 $41.08 $33.41 $33.04 $29.72
====== ====== ====== ====== ====== ====== ======
Total return <F35><F36> 23.36% 23.68% 25.79% 26.02% 3.51% 13.79% 9.36%
Supplemental data and ratios:
Net assets, in thousands,
end of period $39,656 $212,072 $18,663 $138,106 $107,563 $83,820 $81,070
Ratio of net expenses
to average
net assets <F37> 0.66% 0.41% 0.66% 0.46% 0.50% 0.50% 0.50%
Ratio of net investment
income to average
net assets <F37> 1.76% 2.01% 2.14% 2.34% 2.38% 2.32% 2.48%
Portfolio turnover
rate <F38> 7.48% 7.48% 4.61% 4.61% 13.28% 13.78% 5.50%
Average commission
rate paid <F38> $0.0604 $0.0604
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
MIDCORE GROWTH FUND
-------------------------------------------------------------------------------------------------
Year ended Year ended Dec. 29,
October 31, 1996 October 31, 1995<F34> Year 1992<F31>
-------------------------- ------------------------- ended through
Series A Series Inst'l. Series A Series Inst'l. Oct. 31, 1994 Oct. 31, 1993
-------- -------------- -------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $25.58 $25.61 $21.47 $21.47 $21.40 $20.09
Income from investment operations:
Net investment income (0.07) <F39> (0.01) <F39> (0.02) 0.03 0.06 0.09
Net realized and unrealized
gains (losses) on
securities 4.81 4.83 4.16 4.16 0.06 1.32
------- ------- ------- ------- ------- -------
Total from investment
operations 4.74 4.82 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 $30.32 $30.43 $25.58 $25.61 $21.47 $21.40
======= ======= ======= ======= ======= =======
Total return <F35><F36> 18.53% 18.82% 19.31% 19.55% 0.56% 7.53%
Supplemental data and ratios:
Net assets, in thousands,
end of period $16,636 $155,293 $10,105 $134,428 $113,197 $84,467
Ratio of net expenses
to average
net assets <F37> 1.15% 0.90% 1.09% 0.90% 0.88% 0.89%
Ratio of net investment
income to average
net assets <F37> (0.29)% (0.04)% (0.06)% 0.13% 0.30% 0.57%
Portfolio turnover
rate <F38> 56.75% 56.75% 49.84% 49.84% 33.24% 46.29%
Average commission
rate paid <F38> $0.0582 $0.0582
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
SPECIAL GROWTH FUND
------------------------------------------------------------------------------------------------
Year ended Year ended
October 31, 1996 October 31, 1995<F34> Year ended October 31,
-------------------------- ------------------------- -------------------------------
Series A Series Inst'l. Series A Series Inst'l. 1994 1993 1992<F33>
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $41.40 $41.47 $33.19 $33.19 $32.34 $28.50 $28.05
Income from investment operations:
Net investment
income (loss) (0.13) <F39> (0.04) <F39> (0.07) 0.00 0.04 0.07 0.17
Net realized and unrealized
gains (losses) on
securities 4.70 4.74 8.49 8.49 0.85 4.47 2.18
------ ------ ------ ------ ------ ------ ------
Total from investment
operations 4.57 4.70 8.42 8.49 0.89 4.54 2.35
------ ------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net
investment income - - - - (0.04) (0.08) (0.18)
Distributions from
capital gains (4.59) (4.59) (0.21) (0.21) - (0.62) (1.72)
------ ------ ------ ------ ------ ------ ------
Total distributions (4.59) (4.59) (0.21) (0.21) (0.04) (0.70) (1.90)
------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period $41.38 $41.58 $41.40 $41.47 $33.19 $32.34 $28.50
====== ====== ====== ====== ====== ====== ======
Total return <F35><F36> 12.27% 12.58% 25.56% 25.79% 2.77% 16.15% 8.86%
Supplemental data and ratios:
Net assets, in thousands,
end of period $111,159 $482,857 $87,269 $434,228 $395,584 $347,130 $205,207
Ratio of net expenses
to average
net assets <F37> 1.13% 0.88% 1.09% 0.90% 0.89% 0.88% 0.76%
Ratio of net investment
income to average
net assets <F37> (0.35)% (0.10)% (0.19)% 0.00% 0.13% 0.24% 0.65%
Portfolio turnover
rate <F38> 103.34% 103.34% 79.25% 79.25% 69.74% 58.80% 31.94%
Average commission
rate paid <F38> $0.0576 $0.0576
<FN>
<F31> Commencement of operations.
<F32> Effective June 17, 1993, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F33> Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F34> 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.
<F35> Not annualized 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.
<F36> The total return does not reflect the 4% front-end sales charge for Series A.
<F37> Annualized 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.
<F38> Portfolio turnover and average commission rate paid is calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
<F39> Net investment income per share is calculated using ending balances prior to consideration of adjustments for permanent book
and tax differences.
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
INTERNATIONAL EQUITY FUND
-------------------------------------------------------------------------------
Year ended Year ended April 28,
October 31, 1996 October 31, 1995<F43> 1994<F40>
------------------------------- ------------------------------- through
Series A Series Institutional Series A Series Institutional Oct. 31, 1994
-------- -------------------- -------- -------------------- -------------
<S> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $19.15 $19.19 $19.99 $19.99 $20.00
Income from investment operations:
Net investment income 0.07<F48> 0.11<F48> 0.08 0.12 0.04
Net realized and unrealized
gains (losses) on securities 1.43 1.44 (0.87) (0.87) (0.05)
------- ------- ------- ------- -------
Total from investment operations 1.50 1.55 (0.79) (0.75) (0.01)
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.07) (0.10) (0.04) (0.04) -
Distributions from capital gains (0.37) (0.37) (0.01) (0.01) -
------- ------- ------- ------- -------
Total distributions (0.44) (0.47) (0.05) (0.05) -
------- ------- ------- ------- -------
Net asset value, end of period $20.21 $20.27 $19.15 $19.19 $19.99
======= ======= ======= ======= =======
Total return <F44><F45> 7.95% 8.21% (3.95)% (3.75)% (0.05)%
Supplemental data and ratios:
Net assets, in thousands, end of period $3,769 $43,182 $1,633 $31,187 $23,756
Ratio of net expenses
to average net assets <F46> 1.75% 1.50% 1.70% 1.50% 1.49%
Ratio of net investment income
to average net assets <F46> 0.37% 0.62% 0.46% 0.66% 0.44%
Portfolio turnover rate <F47> 31.57% 31.57% 15.12% 15.12% 6.55%
Average commission rate paid <F47> $0.0167 $0.0167
<FN>
<F40> Commencement of operations.
<F41> Effective June 17, 1993, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F42> Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F43> 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.
<F44> Not annualized 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.
<F45> The total return does not reflect the 4% front-end sales charge for Series A.
<F46> Annualized 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.
<F47> Portfolio turnover and average commission rate paid is calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
<F48> Net investment income per share is calculated using ending balances prior to consideration of adjustments for permanent book
and tax differences.
See notes to the financial statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
(Amounts in thousands)
Year Ended October 31, 1996
<CAPTION>
GROWTH EQUITY MIDCORE SPECIAL INTERNATIONAL
BALANCED AND INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
-------- --------- ------- ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income:
Domestic $ 449 $ 5,195 $4,762 $ 948 $ 1,757 -
Foreign (net of
withholding taxes of $130) - - - - - $ 833
Interest income:
Domestic 3,630 1,280 640 482 2,513 67
Foreign - - - - - 2
Other income 24 - - 1 191 2
------- ------- ------- ------- ------- ------
4,103 6,475 5,402 1,431 4,461 904
------- ------- ------- ------- ------- ------
EXPENSES:
Investment advisory fees 1,100 1,888 555 1,254 4,279 635
Administration fees 168 288 254 191 652 50
Shareowner servicing and
accounting costs 97 132 108 78 235 135
Service organization
fees - Series A 64 138 71 34 252 7
Custody fees 59 51 65 40 127 106
Federal and state registration fees 24 28 28 17 36 22
Professional fees 25 24 28 24 26 29
Reports to shareowners 23 36 17 10 74 11
Amortization of organization costs 5 - - 3 - 5
Directors' fees and expenses 6 6 5 5 6 5
Other 6 1 8 3 9 2
------- ------- ------- ------- ------- ------
Total expenses before waiver 1,577 2,592 1,139 1,659 5,696 1,007
Less: Waiver of expenses (413) (193) (160) (125) (394) (362)
------- ------- ------- ------- ------- ------
Net Expenses 1,164 2,399 979 1,534 5,302 645
------- ------- ------- ------- ------- ------
NET INVESTMENT INCOME (LOSS) 2,939 4,076 4,423 (103) (841) 259
------- ------- ------- ------- ------- ------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments 9,418 25,182 2,908 12,442 77,360 1,006
Foreign currency - - - - - (33)
Change in unrealized
appreciation (depreciation) on:
Investments 4,478 29,232 38,137 15,736 (11,614) 1,581
Foreign currency - - - - - (2)
------- ------- ------- ------- ------- ------
Net gain on investments
and foreign currency 13,896 54,414 41,045 28,178 65,746 2,552
------- ------- ------- ------- ------- ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $16,835 $58,490 $45,468 $28,075 $64,905 $2,811
======= ======= ======= ======= ======= ======
See notes to the financial statements.
</TABLE>
BALANCED FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
--------- ---------------
COMMON STOCKS - 57.7%
AEROSPACE & AIRCRAFT - 0.4%
26,500 Gulfstream Aerospace Corporation <F49> $ 626
---------
AIR TRANSPORTATION - 0.2%
6,600 Atlas Air, Inc. <F49> 243
1,800 Comair Holdings, Inc. 36
---------
279
---------
AUTOS & TRUCKS - 0.1%
5,600 Ugly Duckling Corporation <F49> 88
---------
BIO-TECHNOLOGY - 0.0%
7,300 Perseptive Biosystems, Inc. <F49> 49
---------
BUSINESS MACHINES & SOFTWARE - 0.6%
11,900 Mylex Corporation <F49> 152
4,000 National Instruments Corporation <F49> 114
7,800 Network General Corporation <F49> 188
12,000 Synopsys, Inc. <F49> 540
---------
994
---------
BUSINESS SERVICES - 4.9%
1,400 AccuStaff, Inc. <F49> 37
3,800 Alternative Resources Corporation <F49> 76
6,400 Career Horizons, Inc. <F49> 260
38,300 Ceridian Corporation <F49> 1,901
2,200 Concord EFS, Inc. <F49> 64
4,700 Danka Business Systems PLC ADR 186
26,300 Electronic Data Systems Corporation 1,184
17,061 First Data Corporation 1,361
1,925 FIserv, Inc. <F49> 74
6,200 Interim Services, Inc. <F49> 248
4,000 National Data Corporation 165
3,400 Olsten Corporation 68
18,700 Pittston Brink's Group 533
8,100 Prepaid Legal Services, Inc. <F49> 95
6,900 Robert Half International, Inc. <F49> 277
29,100 SunGard Data Systems, Inc. 1,244
---------
7,773
---------
CHEMICALS - 0.3%
1,900 Airgas, Inc. <F49> 43
11,900 Millipore Corporation 417
---------
460
---------
COMMUNICATIONS & MEDIA - 2.7%
19,800 Andrew Corporation <F49> 965
11,200 Echostar Communications Corporation - Class A <F49> 330
13,100 Interpublic Group of Companies, Inc. 635
51,700 PanAmSat Corporation <F49> 1,512
26,200 Paxson Communications Corporation <F49> 233
8,800 Reuters Holdings PLC ADR 655
---------
4,330
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
COMPUTERS - 0.3%
1,000 Ciber, Inc. <F49> $ 35
937 McAfee Associates, Inc. <F49> 43
2,600 Microsoft Corporation <F49> 357
---------
435
---------
CONGLOMERATES - 0.1%
4,200 ITI Technologies, Inc. <F49> 121
---------
CONSUMER PRODUCTS - 0.5%
10,500 Harman International Industries, Inc. 539
8,300 Newell Company 236
500 USA Detergents, Inc. <F49> 16
---------
791
---------
CONTAINERS - 0.1%
5,500 Sealed Air Corporation <F49> 214
---------
DISTRIBUTION - 0.4%
12,800 Alco Standard Corporation 594
100 Peak Technologies Group <F49> 1
---------
595
---------
DRUGS - 2.3%
50,000 Elan Corporation PLC ADR <F49> 1,387
3,000 Forest Laboratories, Inc. - Class A <F49> 116
7,800 Mylan Laboratories 118
14,800 Pharmacia & Upjohn, Inc. 533
36,500 Teva Pharmaceutical Industries Ltd. ADR 1,528
---------
3,682
---------
ELECTRICAL EQUIPMENT - 0.5%
7,400 Cable Design Technologies <F49> 192
20,387 Molex, Inc. - Class A 660
---------
852
---------
ELECTRONICS - 0.6%
6,800 Checkpoint Systems, Inc. <F49> 152
6,800 Gemstar International Group Limited <F49> 150
14,200 Hewlett-Packard Company 627
---------
929
---------
ENERGY - 0.1%
2,100 AES Corporation <F49> 92
---------
ENTERTAINMENT & LEISURE - 1.9%
54,300 GTECH Holdings Corporation <F49> 1,602
35,400 Hollywood Entertainment Corporation <F49> 735
7,900 Movie Gallery, Inc. <F49> 107
6,900 Regal Cinemas, Inc. <F49> 179
11,236 Viacom, Inc. - Class B <F49> 366
---------
2,989
---------
See notes to financial statements.
BALANCED FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
FINANCIAL SERVICES - 5.3%
10,400 Associates First Capital Corporation $ 451
15,100 Credit Acceptance Corporation <F49> 408
1,700 ContiFinancial Corporation <F49> 55
46,400 Federal National Mortgage Association 1,815
18,800 First USA, Inc. 1,081
8,600 Green Tree Financial Corporation 341
62,400 MBNA Corporation 2,356
17,800 Quick and Reilly Group, Inc. 469
54,000 The Charles Schwab Corporation 1,350
---------
8,326
---------
HEALTH CARE SERVICES & SUPPLIES - 7.6%
12,200 American Medical Response, Inc. <F49> 366
4,100 Cardinal Health, Inc. 322
64,388 Columbia/HCA Healthcare Corporation 2,302
15,300 Foundation Health Corporation <F49> 457
27,250 Health Care & Retirement Corporation <F49> 671
49,068 Health Management Associates, Inc. - Class A <F49> 1,080
35,100 Lincare Holdings, Inc. <F49> 1,316
5,800 Living Centers of America, Inc. <F49> 136
27,170 MedPartners, Inc. <F49> 574
11,400 Multicare Companies, Inc. <F49> 205
12,000 Oxford Health Plans, Inc. <F49> 546
6,400 PhyCor, Inc. <F49> 198
17,900 Quorum Health Group, Inc. <F49> 483
7,600 Renal Treatment Centers, Inc. <F49> 203
6,700 Rotech Medical Corporation <F49> 107
3,200 Rural/Metro Corporation <F49> 117
4,500 Steris Corporation <F49> 170
96,200 Vencor, Inc. <F49> 2,850
---------
12,103
---------
HOSPITAL SUPPLIES & SERVICES - 0.3%
15,700 Omnicare, Inc. 428
---------
HOUSING - 0.9%
31,222 Clayton Homes, Inc. 527
8,200 Oakwood Homes Corp. 217
12,000 Southern Energy Homes, Inc. <F49> 178
30,400 Toll Brothers, Inc. <F49> 521
---------
1,443
---------
INSURANCE - 5.0%
11,650 AFLAC, Inc. 467
15,000 AMBAC, Inc. 937
3,500 Chartwell Re Corporation 89
10,900 Equitable of Iowa Companies 456
2,800 Enhance Financial Services Group, Inc. 93
12,300 Arthur J. Gallagher & Company 361
17,200 MBIA, Inc. 1,524
22,000 MGIC Investment Corporation 1,510
26,200 Protective Life Corporation 904
13,800 ReliaStar Financial Corporation 731
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
INSURANCE - 5.0% (CONT.)
9,200 Vesta Insurance Group, Inc. $ 236
15,500 Western National Corporation 279
9,000 Zurich Reinsurance Center Holdings, Inc. 270
---------
7,857
---------
INVESTMENT COMPANIES - 0.4%
27,300 United Assets Management Corporation 669
---------
LODGING - 1.2%
35,700 Mirage Resorts, Inc. <F49> 785
27,400 Promus Hotel Corporation <F49> 870
6,200 Sun International Hotels Ltd. <F49> 293
---------
1,948
---------
MACHINERY - INDUSTRIAL - 1.4%
12,300 Kennametal, Inc. 418
35,550 Thermo Electron Corporation <F49> 1,298
9,200 York International Corporation 445
---------
2,161
---------
METALS & MINERALS - 0.1%
7,900 Worthington Industries, Inc. 164
---------
MULTI-INDUSTRY - 1.6%
51,800 Tyco International, Ltd. 2,571
---------
OFFICE PRODUCTS - 0.1%
2,300 U.S. Office Products Company <F49> 67
6,300 Viking Office Products, Inc. <F49> 183
---------
250
---------
OIL & GAS - DOMESTIC - 1.3%
5,900 Chesapeake Energy Corporation <F49> 344
19,700 Enron Corporation 916
22,500 NGC Corporation 405
8,870 Tejas Gas Corporation <F49> 360
---------
2,025
---------
OIL & GAS - INTERNATIONAL - 0.0%
600 Rutherford-Moran Oil Corporation <F49> 18
---------
OIL & GAS - SERVICES - 2.8%
12,500 Diamond Offshore Drilling, Inc. <F49> 761
20,100 Input/Output, Inc. <F49> 598
46,200 Tidewater, Inc. 2,021
17,800 Transocean Offshore, Inc. 1,126
---------
4,506
---------
POLLUTION CONTROL - 0.5%
23,210 USA Waste Services, Inc. <F49> 743
---------
RESTAURANTS - 0.6%
10,000 Apple South, Inc. 118
30,100 Lone Star Steakhouse & Saloon <F49> 771
---------
889
---------
See notes to financial statements.
BALANCED FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
RETAIL - 2.0%
17,200 Bed Bath and Beyond, Inc. <F49> $ 434
1,700 CompUSA, Inc.<F49> 79
4,200 Discount Auto Parts, Inc. <F49> 91
38,756 Dollar General Corporation 1,075
6,500 Fastenal Company 301
7,900 Friedman's, Inc. - Class A <F49> 129
9,100 General Nutrition Companies, Inc. <F49> 166
14,100 Kohl's Corporation <F49> 508
2,500 MSC Industrial Direct Co., Inc. - Class A <F49> 93
11,000 Revco D.S., Inc. <F49> 331
1,900 Stage Stores, Inc. <F49> 35
---------
3,242
---------
SCIENTIFIC INSTRUMENTS - 0.5%
25,100 Waters Corporation <F49> 778
---------
SEMICONDUCTORS - 3.2%
11,800 Altera Corporation <F49> 732
55,900 Atmel Corporation <F49> 1,419
7,900 Dallas Semiconductor Corporation 158
19,600 Lattice Semiconductor Corporation <F49> 671
6,900 Linear Technology Corporation 231
33,600 Maxim Integrated Products, Inc. <F49> 1,176
7,000 Microchip Technology, Inc. <F49> 254
4,550 SDL, Inc. <F49> 77
11,000 Xilinx, Inc. <F49> 360
---------
5,078
---------
SHOES - 0.3%
12,900 Just For Feet, Inc. <F49> 337
3,000 Wolverine World Wide, Inc. 74
---------
411
---------
SOFTWARE - 0.3%
9,300 Business Objects S.A. <F49> 138
4,400 EPIC Design Technology, Inc. <F49> 108
16,100 System Software Associates, Inc. 188
---------
434
---------
TELECOM EQUIPMENT - 1.3%
7,500 ADC Telecommunications <F49> 513
10,100 Aspect Telecommunications Corporation <F49> 601
45,200 ECI Telecommunications Limited Designs 904
4,800 Glenayre Technologies, Inc. <F49> 124
---------
2,142
---------
TELECOMMUNICATIONS - 1.9%
20,600 Century Telephone Enterprises 662
32,300 Frontier Corporation 937
4,000 United States Cellular Corporation <F49> 118
51,000 WorldCom, Inc. <F49> 1,243
---------
2,960
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
TEXTILES & APPAREL - 0.9%
25,400 Jones Apparel Group, Inc. <F49> $ 794
7,000 Liz Claiborne, Inc. 296
18,800 Tag Heuer International SA ADR <F49> 301
---------
1,391
---------
TRAVEL & RECREATION - 2.2%
46,900 Carnival Corporation - Class A 1,413
86,250 CUC International, Inc. <F49> 2,113
---------
3,526
---------
Total Common Stocks (Cost $67,290) 91,362
---------
PRINCIPAL
AMOUNT
(IN THOUSANDS)
- ---------------
LONG-TERM INVESTMENTS - 39.0%
ASSET-BACKED SECURITIES - 7.4%
AUTO LOAN RECEIVABLES - 0.6%
$ 528 Premier Auto Trust, Series 1993-5,
Class A2, 4.22%, 3/02/99 521
466 Western Financial Grantor Trust,
Series 1995-2, Class A-1, 7.10%, 7/01/00 473
---------
994
---------
CREDIT CARD RECEIVABLES - 6.8%
1,750 Banc One Credit Card Master Trust 1995-B,
Class A, 6.30%, 9/15/00 1,755
1,700 Discover Card Master Trust I, Series 1993-2,
Class A, 5.40%, 5/15/99 1,681
1,150 First Chicago Master Trust II, Series 1994-L,
Class A, 7.15%, 2/15/00 1,179
500 Household Affinity Credit Card Master Trust I,
Series 1993-2, Class A, 5.60%, 11/15/00 491
350 Private Label Credit Card Master Trust II,
Series 1994-2, Class A, 7.80%, 9/20/03 361
2,700 Sears Credit Account Master Trust,
Series 1994-1, Class A, 7.00%, 8/15/00 2,765
1,000 Signet Credit Card Master Trust,
Series 1993-1, Class A, 5.20%, 10/15/98 986
1,650 Standard Credit Card Master Trust,
Series 1993-3, Class A, 5.50%, 1/07/99 1,631
---------
10,849
---------
CORPORATE BONDS (DOMESTIC) - 13.2%
300 Atlantic Richfield Co. Debentures,
8.50%, 4/01/12 344
350 BankAmerica Corporation Subordinated Notes,
7.75%, 7/15/02 368
250 Barclays American Corp. Debentures,
9.75%, 5/15/21 288
250 Chase Manhattan Corporation Debentures,
10.00%, 6/15/99 272
250 Chase Manhattan Corporation Medium Term Notes,
8.65%, 2/13/99 263
See notes to financial statements.
BALANCED FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
PRINCIPAL
AMOUNT MARKET VALUE
(IN THOUSANDS) (IN THOUSANDS)
- -------------- --------------
CORPORATE BONDS (DOMESTIC) - 13.2% (CONT.)
$ 750 Chemical Banking Corporation Subordinated
Capital Notes, 9.75%, 6/15/99 $ 813
1,050 Chrysler Financial Corporation Debentures,
13.25%, 10/15/99 1,244
400 Commonwealth Edison Co. Debentures,
9.50%, 5/01/16 420
350 Continental Cablevision, Inc. Debentures,
8.875%, 9/15/05 389
200 Deseret Generation & Transmission Coop
Debentures, 9.375%, 1/02/11 209
250 Federal Express Corporation Debentures,
9.625%, 10/15/19 266
250 Ford Capital BV Notes,
10.125%, 11/15/00 281
650 Ford Motor Credit Co. Notes,
6.375%, 4/15/00 650
300 Georgia Pacific Corporation Debentures,
9.50%, 12/01/11 358
1,500 Goldman Sachs Group Notes,
6.25%, 2/01/03 1,447
250 GTE Corporation Debentures,
10.25%, 11/01/20 288
Heller Financial, Inc. Notes:
750 9.375%, 3/15/98 782
350 7.875%, 11/01/99 364
1,000 Household Finance Corporation Limited
Senior Notes, 7.125%, 4/30/99 1,021
500 Household Finance Corporation Senior
Subordinated Notes, 9.625%, 7/15/00 551
800 International Lease Finance Corporation
Notes, 5.75%, 12/15/99 788
350 International Paper Co. Debentures,
9.70%, 3/15/00 385
Lehman Brothers Holdings, Inc. Notes:
550 8.375%, 2/15/99 572
300 8.875%, 2/15/00 319
700 Lehman Brothers, Inc. Senior Subordinated
Notes, 10.00%, 5/15/99 756
300 The May Department Stores Company Debentures,
9.875%, 6/15/21 346
1,000 Merrill Lynch & Co., Inc. Senior Notes,
7.75%, 3/01/99 1,034
600 Midland Bank PLC Subordinated Notes,
6.95%, 3/15/11 586
650 NCNB Corporation Subordinated Notes,
10.20%, 7/15/15 824
400 Oneok, Inc. Debentures,
9.70%, 12/01/19 442
250 J.C. Penney Company, Inc. Debentures,
9.75%, 6/15/21 279
400 Rochester Telephone Debentures,
9.00%, 8/15/21 445
PRINCIPAL
AMOUNT MARKET VALUE
(IN THOUSANDS) (IN THOUSANDS)
- --------------- --------------
CORPORATE BONDS (DOMESTIC) - 13.2% (CONT.)
Salomon, Inc. Senior Notes:
$ 350 7.75%, 5/15/00 $ 361
575 6.75%, 2/15/03 563
550 The Charles Schwab Corporation Medium
Term Notes, 5.90%, 10/01/99 543
600 Security Pacific Corporation Subordinated
Notes, 9.75%, 5/15/99 649
700 Smith Barney Holdings, Inc. Notes,
6.875%, 6/15/05 692
425 Tenneco, Inc. Debentures,
7.25%, 12/15/25 411
300 Tennessee Gas Pipeline Co. Debentures,
6.00%, 12/15/11 267
---------
20,880
---------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) - 1.1%
500 Hydro-Quebec Debentures, 9.75%, 1/15/18 573
250 Italy (Republic of) Debentures, 6.875%, 9/27/23 236
350 Norsk Hydro A/S Debentures, 9.00%, 4/15/12 408
250 Quebec (Province of) Debentures, 11.00%, 6/15/15 292
150 Sweden (Kingdom of) Debentures, 11.125%, 6/01/15 212
---------
1,721
---------
U.S. GOVERNMENT AGENCY ISSUES - 0.2%
348 Federal Home Loan Mortgage Corporation Real Estate
Mortgage Investment Conduit Pass-Thru Certificates,
Series 1169, Class D, 7.00%, 5/15/21 353
---------
U.S. TREASURY OBLIGATIONS - 17.1%
U.S. Treasury Bonds:
3,500 10.75%, 2/15/03 4,305
200 10.75%, 8/15/05 258
12,725 9.25%, 2/15/16 16,164
U.S. Treasury Notes:
1,200 7.50%, 10/31/99 1,250
2,600 6.875%, 3/31/00 2,669
2,450 5.50%, 4/15/00 2,411
---------
27,057
---------
Total Long-Term Investments (Cost $60,505) 61,854
---------
NUMBER
OF SHARES
(IN THOUSANDS)
- ---------------
SHORT-TERM INVESTMENTS - 2.8%
INVESTMENT COMPANIES - 2.8%
1 Financial Square Prime Obligation Fund 1
4,356 Short-Term Investments Co. Liquid Assets Portfolio 4,356
---------
Total Short-Term Investments (Cost $4,357) 4,357
---------
Total Investments - 99.5% (Cost $132,152) 157,573
---------
Other Assets, less Liabilities - 0.5% 876
---------
TOTAL NET ASSETS - 100.0% $158,449
=========
<F49> Non-Income producing
See notes to financial statements.
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- ---------------
COMMON STOCKS - 86.5%
BANKING - 5.2%
156,000 Bank of New York $ 5,167
48,800 Northern Trust Corporation 3,379
159,100 Norwest Corporation 6,981
---------
15,527
---------
BUSINESS MACHINES & SOFTWARE - 4.6%
129,300 Diebold, Inc. 7,435
138,000 Xerox Corporation 6,400
---------
13,835
---------
BUSINESS SERVICES - 3.0%
74,000 Flightsafety International 3,654
68,400 Kelly Services - Class A 1,915
10,000 Olsten Corporation 200
107,000 Wallace Computer Services, Inc. 3,143
---------
8,912
---------
CHEMICALS - 4.3%
40,100 Betz Laboratories, Inc. 2,105
41,000 Ecolab, Inc. 1,496
27,400 Millipore Corporation 959
72,000 Praxair, Inc. 3,186
66,600 Sherwin-Williams Company 3,338
32,700 Valspar Corporation 1,606
---------
12,690
---------
COMMUNICATIONS & MEDIA - 1.7%
102,000 Interpublic Group of Companies, Inc. 4,947
---------
CONSUMER PRODUCTS - 5.5%
89,900 Avery Dennison Corporation 5,922
13,325 Duracell International, Inc. 889
12,000 Harman International Industries, Inc. 616
180,400 Newell Company 5,119
76,900 Tupperware Corporation 3,951
---------
16,497
---------
CONSUMER SERVICES - 1.4%
143,338 Service Corporation International 4,085
---------
CONTAINERS - 0.6%
54,200 Bemis Company, Inc. 1,897
---------
COSMETICS & SOAP - 3.7%
43,100 Gillette Company 3,222
35,300 Estee Lauder Companies - Class A 1,518
64,400 Procter & Gamble Company 6,375
---------
11,115
---------
DISTRIBUTION - 0.7%
47,600 Alco Standard Corporation 2,207
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
DRUGS - 8.4%
74,000 Allergan, Inc. $ 2,257
74,000 Johnson & Johnson 3,645
110,300 McKesson Corporation 5,487
85,250 Pfizer, Inc. 7,055
106,000 Pharmacia & Upjohn, Inc. 3,816
43,100 SmithKline Beecham PLC ADR 2,699
---------
24,959
---------
ELECTRIC - 1.5%
113,650 NIPSCO Industries, Inc. 4,304
---------
ELECTRICAL EQUIPMENT - 3.0%
55,300 AMP, Inc. 1,873
9,800 Belden, Inc. 282
38,500 Emerson Electric Company 3,426
34,600 General Electric Company 3,348
---------
8,929
---------
ELECTRONICS - 0.9%
60,200 Hewlett-Packard Company 2,656
---------
ENVIRONMENTAL SERVICES - 1.2%
304,400 Laidlaw, Inc. - Class B 3,577
---------
FINANCIAL SERVICES - 3.4%
127,600 Equifax 3,796
161,700 Federal National Mortgage Association 6,327
---------
10,123
---------
FOOD, BEVERAGES & TOBACCO - 2.4%
123,800 Nabisco Holdings Corporation - Class A 4,612
86,650 PepsiCo, Inc. 2,567
---------
7,179
---------
INSURANCE - 7.3%
57,200 Aetna Life, Inc. 3,825
29,100 Arthur J. Gallagher & Company 855
46,200 MBIA, Inc. 4,094
132,900 ReliaStar Financial Corporation 7,044
328,000 Western National Corporation 5,904
---------
21,722
---------
INVESTMENT COMPANIES - 0.9%
113,800 United Asset Management Corporation 2,788
---------
MACHINERY - INDUSTRIAL - 0.9%
50,800 Kennametal, Inc. 1,727
23,114 Thermo Electron Corporation <F50> 844
---------
2,571
---------
METAL & MINERALS - 0.6%
84,400 Worthington Industries, Inc. 1,751
---------
See notes to financial statements.
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
NATURAL GAS - 1.5%
96,700 Enron Corporation $ 4,497
---------
OIL - DOMESTIC - 1.3%
93,000 Phillips Petroleum Company 3,813
---------
OIL - INTERNATIONAL - 1.5%
38,125 Mobil Corporation 4,451
---------
PAPER & FOREST PRODUCTS - 0.9%
30,000 Kimberly-Clark Corporation 2,798
---------
PRINTING & PUBLISHING - 1.4%
86,100 McGraw-Hill, Inc. 4,036
---------
PRODUCTION - 3.9%
23,200 Dover Corporation 1,192
27,600 Harsco Corporation 1,763
173,800 Tyco International, Ltd. 8,625
---------
11,580
---------
RAILROADS - 0.9%
86,600 Illinois Central Corporation - Class A 2,804
---------
REAL ESTATE - 1.9%
77,900 Bay Apartments Communities, Inc. 2,337
147,900 Security Capital Industrial 2,681
23,900 Sun Communities, Inc. 684
---------
5,702
---------
RETAIL - 5.2%
71,000 Albertson's, Inc. 2,441
96,000 Dillard Department Stores, Inc. - Class A 3,048
148,350 Hannaford Brothers Company 4,469
9,600 Intimate Brands, Inc. 175
146,000 Melville Corporation 5,439
---------
15,572
---------
SHOES - 0.2%
20,603 Footstar, Inc. <F50> 453
---------
TELECOMMUNICATIONS - 3.9%
7,300 AT&T Corporation 255
212,000 Frontier Corporation 6,148
71,300 GTE Corporation 3,003
46,998 Lucent Technologies, Inc. 2,209
---------
11,615
---------
TEXTILES & APPAREL - 1.7%
37,000 Liz Claiborne, Inc. 1,563
146,000 Warnaco Group - Class A 3,632
---------
5,195
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
TRAVEL & RECREATION - 1.0%
45,800 The Walt Disney Company $ 3,017
---------
Total Common Stock (Cost $190,147) 257,804
---------
PREFERRED STOCK - 1.1%
FINANCE COMPANIES - 1.1%
86,100 Time Warner, Inc. 3,336
---------
Total Preferred Stock (Cost $3,037) 3,336
---------
NUMBER
OF SHARES
(IN THOUSANDS)
- ---------------
LONG-TERM INVESTMENTS - 3.2%
CORPORATE CONVERTIBLE BONDS - 3.2%
111 Merrill Lynch Strypes, 6.50%, 8/15/98 (convertible
to MGIC Investment Corporation common stock) 6,827
PRINCIPAL
AMOUNT
(IN THOUSANDS)
- ---------------
$2,745 Tenet Health Care Subordinated Convertible
Debentures, 6.00%, 12/01/05 (convertible to
Vencor, Inc. common stock) 2,803
---------
Total Long-Term Investments (Cost $8,837) 9,630
---------
NUMBER
OF SHARES
(IN THOUSANDS)
- ---------------
SHORT-TERM INVESTMENTS - 8.1%
INVESTMENT COMPANIES - 1.4%
10 Financial Square Prime Obligation Fund 10
4,255 Short-Term Investments Co. Liquid Assets Portfolio 4,255
---------
4,265
---------
PRINCIPAL
AMOUNT
(IN THOUSANDS)
- ---------------
VARIABLE RATE DEMAND NOTES - 6.7%
$10,000 Sara Lee Corporation 10,000
10,000 Warner-Lambert Co. 10,000
---------
20,000
---------
Total Short-Term Investments (Cost $24,265) 24,265
---------
Total Investments - 98.9% (Cost $226,286) 295,035
---------
Other Assets, less Liabilities - 1.1% 3,163
---------
TOTAL NET ASSETS - 100.0% $298,198
=========
<F50> Non-income producing
See notes to financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
COMMON STOCKS - 98.7%
AEROSPACE & Aircraft - 2.5%
13,100 Allied Signal, Inc. $ 858
16,300 Boeing Company 1,555
2,600 General Dynamics Corporation 178
9,434 Lockheed Martin Corporation 846
10,300 McDonnell Douglas Corporation 561
2,400 Northrop Grumman Corporation 194
11,000 Raytheon Company 542
10,200 Rockwell International Corporation 561
3,700 Textron, Inc. 328
5,700 United Technologies Corporation 734
---------
6,357
---------
AIR TRANSPORTATION - 0.4%
4,200 AMR Corporation * 353
2,800 Delta Air Lines, Inc. 198
2,800 Federal Express Corporation <F51> 225
7,000 Southwest Airlines Company 158
---------
934
---------
APPLIANCES - 0.2%
1,400 Armstrong World Industries, Inc. 93
4,200 Black & Decker Corporation 157
6,200 Maytag Corporation 123
2,100 Snap-On Tools, Inc. 68
3,700 Whirlpool Corporation 175
---------
616
---------
AUTOS & TRUCKS - 1.6%
33,850 Chrysler Corporation 1,138
4,800 Dana Corporation 142
4,200 Eaton Corporation 251
2,000 Echlin, Inc. 65
55,000 Ford Motor Company 1,719
5,825 Genuine Parts Company 255
5,600 ITT Industries, Inc. 130
2,120 PACCAR, Inc. 118
3,100 TRW, Inc. 281
---------
4,099
---------
BANKING - 7.4%
20,545 Banc One Corporation 871
5,600 Bank of Boston Corporation 358
18,300 Bank of New York Company, Inc. 606
17,012 BankAmerica Corporation 1,557
4,100 Bankers Trust New York Corporation 346
9,100 Barnett Banks, Inc. 347
7,200 Boatmen's Bancshares, Inc. 437
20,110 Chase Manhattan Corporation 1,724
22,200 Citicorp 2,198
4,800 Comerica, Inc. 255
10,300 CoreStates Financial Corporation 501
4,600 Fifth Third Bancorp 288
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
BANKING - 7.4% (CONT.)
6,500 First Bank System, Inc. $ 429
14,785 First Chicago Corporation 754
12,480 First Union Corporation 908
12,571 Fleet Financial Group, Inc. 627
6,200 Mellon Bank Corporation 404
9,000 J.P. Morgan & Company, Inc. 777
13,605 NationsBank Corporation 1,282
17,900 Norwest Corporation 785
16,200 PNC Bank Corporation 587
2,200 Republic New York Corporation 168
10,800 Sun Trust Banks, Inc. 504
7,000 US Bancorp 280
8,200 Wachovia Corporation 441
4,333 Wells Fargo & Company 1,157
---------
18,591
---------
BIO-TECHNOLOGY - 0.3%
12,200 Amgen, Inc. <F51> 748
---------
BUILDING & HOUSING - 0.5%
10,600 Corning, Inc. 411
4,600 Fluor Corporation 301
8,100 Masco Corporation 254
2,900 Owens-Corning Fiberglass Corporation 113
4,400 The Stanley Works 124
---------
1,203
---------
BUILDING MATERIALS - 0.1%
2,400 Johnson Controls, Inc. 175
---------
BUSINESS MACHINES & SOFTWARE - 3.1%
6,600 Amdahl Corporation <F51> 68
4,700 Apple Computer, Inc. <F51> 108
12,500 COMPAQ Computer Corporation <F51> 870
7,650 Digital Equipment Corporation <F51> 226
5,900 Honeywell, Inc. 367
24,300 International Business Machines Corporation 3,135
30,675 Oracle Systems Corporation <F51> 1,298
6,900 Pitney-Bowes, Inc. 385
8,500 Sun Microsystems, Inc. <F51> 518
3,900 Tandem Computers, Inc. <F51> 49
5,000 Unisys Corporation <F51> 31
14,850 Xerox Corporation 689
---------
7,744
---------
BUSINESS SERVICES - 3.1%
1,600 Autodesk, Inc. 37
12,900 Automatic Data Processing, Inc. 537
5,700 H & R Block, Inc. 141
3,200 Ceridian Corporation <F51> 159
29,700 Cisco Systems, Inc. <F51> 1,838
17,125 Computer Associates International, Inc. 1,012
2,600 Computer Sciences Corporation <F51> 193
See notes to financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
BUSINESS SERVICES - 3.1% (CONT.)
4,700 Deluxe Corporation $ 153
8,021 Dun & Bradstreet Corporation 464
11,300 First Data Corporation 901
35,300 General Motors Corporation 1,902
3,600 Moore Corporation Limited 73
2,600 National Service Industries 90
11,000 Service Corporation International 314
---------
7,814
---------
CHEMICALS - 3.1%
5,400 Air Products and Chemicals, Inc. 324
11,300 Dow Chemical Company 879
26,300 Dupont (E.I.) De Nemours & Company 2,439
2,200 Ecolab, Inc. 80
2,900 W.R. Grace & Company <F51> 154
3,100 Great Lakes Chemical Corporation 162
5,300 Hercules, Inc. 252
1,800 Millipore Corporation 63
27,600 Monsanto Company 1,094
6,900 Morton International, Inc. 272
2,500 Nalco Chemical Company 91
8,900 PPG Industries, Inc. 507
7,000 Praxair, Inc. 310
2,800 Rohm & Haas Company 200
6,600 Rubbermaid, Inc. 153
4,200 Sherwin-Williams Company 210
2,000 Sigma-Aldrich Corporation 117
6,450 Union Carbide Corporation 275
4,700 The Williams Companies, Inc. 246
---------
7,828
---------
COMMUNICATIONS & MEDIA - 1.2%
2,900 Andrew Corporation <F51> 141
12,300 Comcast Corporation - Class A 181
4,700 Dow Jones & Company, Inc. 155
6,600 Gannett Company, Inc. 501
3,400 Harcourt General, Inc. 169
3,700 Interpublic Group of Companies, Inc. 180
5,000 Knight-Ridder, Inc. 187
4,400 New York Times Company - Class A 159
30,000 Tele-Communications, Inc. - Class A <F51> 373
17,800 Time Warner, Inc. 663
4,623 Times Mirror Company - Class A 214
2,700 Tribune Company 221
---------
3,144
---------
COMPUTERS - 0.4%
4,600 Dell Computer Corporation <F51> 374
10,200 EMC Corporation <F51> 268
5,300 Seagate Technology, Inc. <F51> 354
7,000 Silicon Graphics, Inc. <F51> 129
---------
1,125
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
CONGLOMERATES - 0.3%
5,900 ITT Corporation <F51> $ 248
8,124 Tenneco, Inc. 402
---------
650
---------
CONSUMER DURABLES - 0.6%
3,637 Eastman Chemical Company 192
15,250 Eastman Kodak Company 1,216
2,128 Polaroid Corporation 86
---------
1,494
---------
CONSUMER PRODUCTS - 0.2%
2,200 Avery Dennison Corporation 145
7,600 Newell Company 216
3,200 Tupperware Corporation 164
---------
525
---------
CONTAINERS - 0.2%
1,200 Ball Corporation 29
2,100 Bemis Company, Inc. 73
5,800 Crown Cork & Seal Company, Inc. 278
3,242 Stone Container Corporation 49
---------
429
---------
COSMETICS & SOAP - 2.5%
6,400 Avon Products, Inc. 347
2,700 Clorox Company 295
6,900 Colgate-Palmolive Company 635
20,644 Gillette Company 1,543
5,800 International Flavors & Fragrances, Inc. 240
31,700 Procter & Gamble Company 3,138
---------
6,198
---------
DISTRIBUTION - 0.1%
6,358 Alco Standard Corporation 295
---------
DIVERSIFIED - 0.5%
7,500 Unilever N.V. 1,147
---------
DRUGS - 8.6%
36,500 Abbott Laboratories 1,848
2,800 Allergan, Inc. 85
3,900 Alza Corporation - Class A <F51> 1,807
3,100 Bard (C.R.), Inc. 88
12,500 Baxter International, Inc. 520
6,200 Becton, Dickinson & Company 270
22,960 Bristol-Meyers Squibb 101
29,500 American Home Products Corporation Company 2,428
7,300 Humana, Inc. <F51> 133
61,200 Johnson & Johnson 3,014
25,600 Eli Lilly & Company 1,805
11,100 Medtronic, Inc. 715
56,200 Merck & Company, Inc. 4,166
See notes to financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
DRUGS - 8.6% (CONT.)
29,900 Pfizer, Inc. $ 2,474
23,555 Pharmacia & Upjohn, Inc. 848
17,700 Schering-Plough 1,133
3,800 St. Jude Medical, Inc. <F51> 150
9,300 Tenet Healthcare Corporation <F51> 194
---------
21,779
---------
ELECTRIC - 1.0%
8,032 CINenergy Corporation 266
11,100 Consolidated Edison Company of New York, Inc. 325
9,600 Duke Power Company 469
19,400 Edison International 383
5,600 General Public Utilities Corporation 184
13,600 PacifiCorp 287
10,100 Texas Utilities Company 409
5,500 Union Electric Company 213
---------
2,536
---------
ELECTRICAL EQUIPMENT - 3.6%
10,500 AMP, Inc. 356
10,200 Emerson Electric Company 908
76,500 General Electric Company 7,401
5,700 General Instrument Corporation <F51> 115
2,800 Grainger (W.W.), Inc. 208
2,600 Scientific-Atlanta, Inc. 38
---------
9,026
---------
ELECTRONICS - 3.8%
1,700 General Signal Corporation 69
2,100 Harris Corporation 132
48,000 Hewlett-Packard Company 2,118
38,000 Intel Corporation 4,175
27,700 Motorola, Inc. 1,274
6,500 National Semiconductor Corporation <F51> 125
11,900 Northern Telecom Ltd. 775
2,100 Perkin-Elmer Corporation 113
1,100 Tektronix, Inc. 43
8,900 Texas Intruments, Inc. 428
1,300 Thomas & Betts Corporation 55
3,100 Western Atlas, Inc. <F51> 215
---------
9,522
---------
ENERGY - 2.4%
9,300 American Electric Power Company 386
7,150 Baltimore Gas & Electric Company 195
8,000 Carolina Power & Light Company 289
10,600 Central & South West Corporation 281
5,225 Coastal Corporation 225
4,100 Consolidated Natural Gas Company 218
8,100 Dominion Resources, Inc. 306
7,800 DTE Energy Company 235
11,800 Entergy Corporation 330
9,100 FPL Group, Inc. 419
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
ENERGY - 2.4% (CONT.)
11,600 Houston Industries, Inc. $ 265
4,100 Niagara Mohawk Power Corporation <F51> 35
1,400 NICOR, Inc. 49
3,100 Northern States Power Company 146
6,500 Ohio Edison Company 136
4,600 Pacific Enterprises, Inc. 141
19,100 Pacific Gas & Electric Company 449
7,108 Panenergy Corporation 274
10,700 Peco Energy Company 270
10,600 Public Service Enterprises Group, Inc. 285
4,200 Sonat, Inc. 207
30,000 Southern Company 664
10,400 Unicom Corporation 270
---------
6,075
---------
ENERGY - RAW MATERIALS - 0.6%
8,000 Baker Hughes, Inc. 285
8,900 Dresser Industries, Inc. 292
5,900 Halliburton Company 334
1,700 Louisiana Land & Exploration Company 97
2,300 McDermott International, Inc. 41
14,800 Occidental Petroleum Corporation 363
---------
1,412
---------
ENTERTAINMENT & LEISURE - 1.2%
4,500 Brunswick Corporation 106
4,750 Hasbro, Inc. 185
2,100 King World Productions, Inc. <F51> 76
13,687 Mattel, Inc. 395
33,000 McDonald's Corporation 1,464
8,821 Price/Costco, Inc. <F51> 175
17,285 Viacom, Inc. - Class B <F51> 564
5,550 Wendy's International, Inc. 114
---------
3,079
---------
ENVIRONMENTAL SERVICES - 0.1%
15,600 Laidlaw, Inc. - Class B 183
---------
FINANCE - 1.7%
22,000 American Express Company 1,034
2,400 Beneficial Corporation 140
7,100 Great Western Financial Corporation 199
5,000 H.F. Ahmanson & Company 157
4,300 Household International, Inc. 380
7,900 Merrill Lynch & Company, Inc. 555
10,700 National City Corporation 464
4,500 Salomon, Inc. 203
22,058 The Travelers Group, Inc. 1,197
---------
4,329
---------
See notes to financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
FINANCIAL SERVICES - 1.4%
7,473 Dean Witter Discover and Company $ 440
51,300 Federal National Mortgage Association 2,007
6,600 Green Tree Financial Corporation 262
10,100 MBNA Corporation 381
7,100 Morgan Stanley Group, Inc. 357
---------
3,447
---------
FOOD, BEVERAGES & TOBACCO - 7.7%
7,500 American Brands, Inc. 358
26,471 Archer-Daniels-Midland Company 576
11,400 Campbell Soup Company 912
115,600 Coca-Cola Company 5,838
12,075 ConAgra, Inc. 602
6,600 CPC International, Inc. 520
9,800 Dardeen Restaurants, Inc. 82
7,800 General Mills, Inc. 445
16,900 Heinz (H.J.) Company 600
7,400 Hershey Foods Corporation 358
10,100 Kellogg Company 641
5,200 Loews Corporation 430
72,900 PepsiCo, Inc. 2,160
38,100 Philip Morris Companies, Inc. 3,529
3,700 Pioneer Hi-Bred International, Inc. 248
5,600 Quaker Oats Company 199
5,200 Ralston-Ralston Purina Group 344
21,600 Sara Lee Corporation 767
8,200 Sysco Corporation 279
8,300 UST, Inc. 240
5,200 Wrigley (Wm) Jr. Company 313
---------
19,441
---------
GOLD & PRECIOUS METALS - 0.5%
18,200 Barrick Gold Corporation 475
5,300 Battle Mountain Gold Company 40
3,500 Cyprus Amax Minerals Company 79
5,700 Echo Bay Mines, Ltd. 45
9,600 Freeport McMoRan Copper & Gold, Inc. - Class B 292
6,100 Homestake Mining Company 87
11,361 Placer Dome, Inc. 273
5,152 Santa Fe Pacific Gold Corporation 61
---------
1,352
---------
HEALTH CARE SERVICES & SUPPLIES - 1.2%
2,840 Allegiance Corporation <F51> 53
2,900 Bausch & Lomb, Inc. 98
2,700 Beverly Enterprises <F51> 33
8,700 Boston Scientific Corporation <F51> 473
31,228 Columbia/HCA Healthcare Corporation 1,116
4,500 Fresenius Medical Care AG <F51> 1
2,200 Manor Care, Inc. 86
8,200 United Healthcare Corporation 311
13,000 Warner-Lambert Company 827
---------
2,998
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
HOSPITAL SUPPLIES & SERVICES - 0.1%
6,500 Biomet, Inc. $ 105
2,900 US Surgical Corporation 121
---------
226
---------
HOUSEHOLD PRODUCTS - 0.1%
9,300 Federated Department Stores <F51> 307
---------
INSURANCE - 3.7%
6,894 Aetna Life and Casualty Company 461
1,300 Alexander & Alexander Services, Inc. 20
20,673 Allstate Corporation 1,160
9,500 American General Corporation 354
21,555 American International Group, Inc. 2,341
4,700 Aon Corporation 271
8,500 Chubb Corporation 425
3,400 CIGNA Corporation 444
3,700 General Re Corporation 545
5,700 ITT Hartford Group 359
4,150 Jefferson-Pilot Corporation 236
10,302 KeyCorp 480
4,600 Lincoln National Corporation 223
3,500 Marsh & McLennan Companies, Inc. 365
2,500 MGIC Investment Corporation 172
4,900 Providian Corporation 230
5,300 SAFECO Corporation 200
4,300 St. Paul Companies, Inc. 234
3,250 Torchmark Corporation 157
3,200 Transamerica Corporation 243
3,200 UNUM Corporation 201
5,200 USF&G Corporation 99
---------
9,220
---------
LIQUOR - 0.7%
23,100 Anheuser-Busch Companies, Inc. 889
3,400 Brown-Foreman Corporation - Class B 147
17,300 Seagram Company Ltd. 655
---------
1,691
---------
LODGING - 0.2%
5,900 HFS, Inc. <F51> 432
---------
MACHINERY - AGRICULTURE & AUTOMOTIVE - 0.1%
3,700 Case Equipment 172
---------
MACHINERY - INDUSTRIAL - 0.0%
1,600 Harnischfeger Industries, Inc. 64
---------
See notes to financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
METALS & MINERALS - 0.4%
6,360 Allegheny Teledyne, Inc. $ 136
5,600 Bethlehem Steel Corporation <F51> 46
1,300 Inland Steel Industries, Inc. 21
4,600 Nucor Corporation 218
13,566 USX Corporation-Marathon Group, Inc. 297
4,793 USX Corporation-US Steel Group, Inc. 131
5,125 Worthington Industries, Inc. 106
---------
955
---------
MISCELLANEOUS - 1.0%
8,900 Applied Materials, Inc. <F51> 235
4,100 Mallinckrodt Group, Inc. 178
19,500 Minnesota Mining & Manufacturing Company 1,494
6,900 PP&L Resources, Inc. 161
7,800 3 Com Corporation <F51> 527
---------
2,595
---------
MULTI-INDUSTRY - 0.1%
7,100 Tyco International, Ltd. 352
---------
NATURAL GAS - 0.3%
11,600 Enron Corporation 539
6,900 NorAm Energy Corp. 106
---------
645
---------
NON-FERROUS METALS - 0.7%
9,850 Alcan Aluminum Ltd. 324
8,500 Aluminum Company of America 498
1,200 ASARCO, Inc. 31
6,300 Englehard Corporation 115
5,600 Inco, Ltd. 178
5,221 Newmont Mining Corporation 241
3,300 Phelps Dodge Corporation 207
3,600 Reynolds Metals Company 203
---------
1,797
---------
OFFICE EQUIPMENT - 0.1%
16,700 Novell, Inc. <F51> 154
---------
OIL - DOMESTIC - 1.9%
4,400 Amerada Hess Corporation 244
22,600 Amoco Corporation 1,712
2,800 Ashland, Inc. 119
7,500 Atlantic Richfield Company 994
5,800 Burlington Resources, Inc. 292
2,700 Columbia Gas System, Inc. 164
2,900 Kerr-McGee Corporation 182
4,900 Oryx Energy Company <F51> 94
1,700 Pennzoil Company 87
12,900 Phillips Petroleum Company 529
3,800 Sun Company, Inc. 85
11,200 Unocal Corporation 410
---------
4,912
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
OIL - INTERNATIONAL - 5.8%
30,000 Chevron Corporation $ 1,973
57,400 Exxon Corporation 5,087
18,100 Mobil Corporation 2,113
24,800 Royal Dutch Petroleum Company 4,101
12,100 Texaco, Inc. 1,230
---------
14,504
---------
OIL & GAS SERVICES - 0.5%
11,500 Schlumberger, Ltd. 1,140
8,638 Union Pacific Resources Group 238
---------
1,378
---------
PAPER & FOREST PRODUCTS - 1.5%
2,500 Boise Cascade Corporation 78
4,300 Champion International Corporation 187
4,600 Georgia-Pacific Corporation 345
14,300 International Paper Company 611
4,700 James River Corporation of Virginia 148
13,156 Kimberly-Clark Corporation 1,227
4,972 Louisiana Pacific Corporation 104
2,200 Mead Corporation 125
700 Potlatch Corporation 30
2,250 Temple-Inland, Inc. 115
3,050 Union Camp Corporation 149
4,225 Westvaco Corporation 120
9,550 Weyerhaeuser Company 438
2,900 Willamette Industries 196
---------
3,873
---------
POLLUTION CONTROL - 0.4%
9,300 Browning-Ferris Industries, Inc. <F51> 244
23,700 WMX Technologies, Inc. 815
---------
1,059
---------
PRINTING & PUBLISHING - 0.2%
4,000 McGraw-Hill, Inc. 188
7,000 R.R. Donnelley & Sons Company 213
---------
401
---------
PRODUCTION - 1.3%
1,200 Briggs & Stratton Corporation 48
9,000 Caterpillar, Inc. 618
1,400 Cincinnati Milacron, Inc. 27
5,300 Cooper Industries, Inc. 213
12,300 Deere & Company 514
5,300 Dover Corporation 272
1,400 FMC Corporation <F51> 103
1,600 Foster Wheeler Corporation 66
5,900 Illinois Tool Works, Inc. 414
4,700 Ingersoll-Rand Company 196
6,366 Pall Corporation 163
4,450 Parker-Hannifin Corporation 169
2,450 Raychem Corporation 191
See notes to financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
PRODUCTION - 1.3% (CONT.)
1,300 Timken Company $ 58
19,200 Westinghouse Electric Corporation 329
---------
3,381
---------
RAILROADS - 1.1%
6,781 Burlington Northern Santa Fe 559
3,600 Conrail, Inc. 342
10,520 CSX Corporation 454
6,000 Norfolk Southern Corporation 535
11,500 Union Pacific Corporation 645
5,300 Whitman Corporation 129
---------
2,664
---------
RETAIL - 4.5%
11,700 Albertson's, Inc. 402
4,400 American Greetings Corporation 129
6,500 American Stores Company 269
4,700 Circuit City Stores, Inc. 154
10,200 Dayton Hudson Corporation 353
5,500 Dillard Department Stores, Inc. - Class A 175
14,400 Gap, Inc. 418
2,500 Giant Food, Inc. 84
22,200 Home Depot, Inc. 1,215
23,500 Kmart Corporation <F51> 229
5,800 Kroger Corporation <F51> 259
12,011 The Limited, Inc. 221
7,800 Lowe's Companies, Inc. 315
11,476 The May Department Stores Company <F51> 544
4,700 Melville Corporation 175
1,600 Mercantile Stores Company, Inc. 79
4,700 Nordstrom, Inc. 169
9,800 J.C. Penney Company, Inc. 515
2,000 Pep Boys-Manny, Moe & Jack 70
4,300 Rite Aid Corporation 146
18,300 Sears Roebuck and Company 885
3,500 Supervalu, Inc. 104
3,500 Tandy Corporation 132
3,700 TJX Companies, Inc. 148
13,525 Toys "R" Us, Inc. <F51> 458
11,300 Walgreen Company 427
106,100 Wal-Mart Stores, Inc. 2,825
7,800 Winn-Dixie Stores, Inc. 260
6,600 Woolworth Corporation <F51> 139
---------
11,299
---------
SAVINGS & LOAN - 0.4%
8,400 Federal Home Loan Mortgage Corporation 848
2,500 Golden West Financial Corporation 162
---------
1,010
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
SEMICONDUCTORS - 0.2%
5,800 Advanced Micro Devices, Inc. <F51> $ 103
7,900 LSI Logic Corp <F51> 209
8,900 Micron Technology Incorporated 226
---------
538
---------
SHOES - 0.0%
1,353 Footstar, Inc.<F51> 30
---------
SOFTWARE - 1.6%
8,000 Bay Networks <F51> 162
28,000 Microsoft Corporation <F51> 3,843
---------
4,005
---------
TELECOMMUNICATIONS - 7.6%
23,200 Airtouch Communications, Inc. <F51> 606
9,200 Alltell Corporation 281
25,700 Ameritech Corporation 1,407
74,356 AT&T Corporation 2,593
20,500 Bell Atlantic Corporation 1,235
45,700 BellSouth Corp 1,862
3,500 Cabletron Systems <F51> 218
5,800 DSC Communications Corporation <F51> 81
44,300 GTE Corporation 1,866
54,996 Lucent Technologies, Inc. 2,585
32,600 MCI Communications Corporation 819
19,400 NYNEX Corporation 863
20,500 Pacific Telesis Group 697
28,600 SBC Communications, Inc. 1,391
19,500 Sprint Corporation 765
4,300 Tellabs, Inc. <F51> 366
22,653 US West, Inc. 688
22,753 US West Media Group, Inc. <F51> 356
18,800 WorldCom, Inc. <F51> 458
---------
19,137
---------
TEXTILES & APPAREL - 0.6%
4,100 Fruit of The Loom, Inc. <F51> 149
3,600 Liz Claiborne, Inc. 152
13,200 Nike, Inc. - Class B 777
2,600 Reebok International Ltd. 93
2,000 Russell Corporation 57
2,677 VF Corporation 175
---------
1,403
---------
TIRE & RUBBER - 0.2%
4,800 Cooper Tire & Rubber Company 94
2,600 Goodrich (B.F.) Company 110
6,762 Goodyear Tire & Rubber Company 310
---------
514
---------
See notes to financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
TRANSPORTATION EQUIPMENT - 0.0%
1,700 Cummins Engine Company, Inc. $ 71
---------
TRAVEL & RECREATION - 1.3%
16,775 CUC International, Inc. <F51> 411
31,700 The Walt Disney Company 2,088
4,950 Harrahs Entertainment, Inc. <F51> 83
10,000 Hilton Hotels Corporation 304
5,900 Marriott International, Inc. 336
---------
3,222
---------
TRUCKING - 0.0%
2,000 Caliber System, Inc. 34
3,350 Ryder System, Inc. 100
---------
134
---------
Total Common Stock ($164,714) 248,440
---------
PRINCIPAL
AMOUNT MARKET VALUE
(IN THOUSANDS) (IN THOUSANDS)
- -------------- --------------
SHORT-TERM INVESTMENTS - 1.0%
U.S. TREASURIES - 0.4%
$1,050 U.S. Treasury Bill, 5.06%, 12/05/96 $ 1,045
---------
Total U.S. Treasuries (Cost $1,045) 1,045
---------
VARIABLE RATE DEMAND NOTES - 0.6%
10 Eli Lilly & Company 10
1,571 Warner-Lambert Co. 1,571
---------
Total Variable Rate Demand Notes (Cost $1,581) 1,581
---------
Total Short-Term Investments (Cost $2,626) 2,626
---------
Total Investments - 99.7% (Cost $167,340) 251,066
---------
Other Assets, less Liabilities - 0.3% 662
---------
TOTAL NET ASSETS - 100.0% $251,728
========
<F51> Non-income producing
See notes to financial statements.
MIDCORE GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
COMMON STOCKS - 98.2%
AEROSPACE & AIRCRAFT - 1.1%
78,000 Gulfstream Aerospace Corporation <F52> $ 1,843
---------
BUSINESS SERVICES - 11.3%
106,200 Ceridian Corporation <F52> 5,270
29,100 Cintas Corporation 1,695
62,600 Electronic Data Systems Corporation 2,817
49,914 First Data Corporation 3,981
20,200 Olsten Corporation 404
54,000 Pittston Brink's Group 1,539
88,500 SunGard Data Systems, Inc. <F52> 3,783
---------
19,489
---------
CHEMICALS - 0.7%
33,200 Millipore Corporation 1,162
---------
COMMUNICATIONS & MEDIA - 7.4%
54,700 Andrew Corporation <F52> 2,667
34,200 EchoStar Communications Corporation - Class A <F52> 1,009
38,200 Interpublic Group of Companies, Inc. 1,853
157,200 PanAmSat Corporation <F52> 4,598
69,000 Paxson Communications Corporation <F52> 612
25,600 Reuters Holding PLC ADR 1,904
---------
12,643
---------
CONSUMER PRODUCTS - 1.8%
31,400 Harman International Industries, Inc. 1,613
30,700 Newell Company 871
18,300 Sola International, Inc. <F52> 661
---------
3,145
---------
DISTRIBUTION - 1.2%
46,000 Alco Standard Corporation 2,133
---------
DRUGS - 4.6%
162,600 Elan Corporation PLC ADR <F52> 4,512
36,000 Pharmacia & Upjohn, Inc. 1,296
50,200 Teva Pharmaceutical Industries, Ltd. ADR 2,102
---------
7,910
---------
ELECTRICAL EQUIPMENT - 1.0%
2,400 AVX Corporation 44
50,893 Molex, Inc. - Class A 1,648
---------
1,692
---------
ELECTRONICS - 1.0%
36,900 Hewlett-Packard Company 1,628
---------
ENTERTAINMENT & LEISURE - 3.3%
156,500 GTECH Holdings Corporation <F52> 4,617
33,935 Viacom, Inc. - Class B <F52> 1,107
---------
5,724
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
FINANCIAL SERVICES - 9.7%
30,400 Associates First Capital Corporation $ 1,319
141,500 Federal National Mortgage Association 5,536
63,200 First USA, Inc. 3,634
164,850 MBNA Corporation 6,223
---------
16,712
---------
HEALTH CARE SERVICES & SUPPLIES - 11.3%
14,700 Boston Scientific Corporation <F52> 799
14,600 Cardinal Health, Inc. 1,146
178,596 Columbia/HCA Healthcare Corporation 6,385
60,800 Foundation Health Corporation <F52> 1,816
61,950 Health Care & Retirement Corporation <F52> 1,526
60,300 Lincare Holdings, Inc. <F52> 2,261
183,500 Vencor, Inc. <F52> 5,436
---------
19,369
---------
INSURANCE - 4.9%
34,825 AFLAC, Inc. 1,397
51,800 MBIA, Inc. 4,591
36,500 MGIC Investment Corporation 2,505
---------
8,493
---------
INVESTMENT COMPANIES - 1.1%
74,200 United Assets Management Corporation 1,818
---------
LODGING - 2.8%
66,700 Mirage Resorts, Inc. <F52> 1,467
83,700 Promus Hotel Corporation <F52> 2,657
16,100 Sun International Hotels Ltd. <F52> 761
---------
4,885
---------
MACHINERY - INDUSTRIAL - 3.7%
30,000 Kennametal, Inc. 1,020
108,000 Thermo Electron Corporation 3,942
27,500 York International Corporation 1,330
---------
6,292
---------
METALS & MINERALS - 0.3%
25,000 Worthington Industries, Inc. 519
---------
MULTI-INDUSTRY - 4.6%
158,500 Tyco International, Ltd. 7,866
---------
NATURAL GAS - 1.5%
57,100 Enron Corporation 2,655
---------
OIL & GAS SERVICES - 6.8%
38,400 Diamond Offshore Drilling, Inc. <F52> 2,338
134,200 Tidewater, Inc. 5,871
53,700 Transocean Offshore, Inc. 3,397
---------
11,606
---------
See notes to financial statements.
MIDCORE GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
POLLUTION CONTROL - 1.0%
54,200 USA Waste Services, Inc. <F52> $ 1,734
---------
RETAIL - 1.0%
29,800 Kohl's Corporation <F52> 1,073
24,000 Revco D.S., Inc. <F52> 723
---------
1,796
---------
SCIENTIFIC INSTRUMENTS - 1.2%
68,000 Waters Corporation <F52> 2,108
---------
SEMICONDUCTORS - 1.7%
66,100 Atmel Corporation <F52> 1,677
37,700 Maxim Integrated Products <F52> 1,320
---------
2,997
---------
SOFTWARE - 0.9%
11,000 Microsoft Corporation <F52> 1,510
---------
TELECOM EQUIPMENT - 1.4%
123,400 ECI Telecommunications Limited Designs 2,468
---------
TELECOMMUNICATIONS - 3.9%
92,200 Frontier Corporation 2,674
163,500 WorldCom, Inc. <F52> 3,985
---------
6,659
---------
TEXTILES & APPAREL - 1.2%
20,300 Liz Claiborne, Inc. 858
10,000 Nike, Inc. - Class B 589
42,000 Tag Heuer International SA - ADR <F52> 672
---------
2,119
---------
TRAVEL & RECREATION - 5.8%
124,700 Carnival Corporation - Class A 3,757
251,925 CUC International, Inc. <F52> 6,172
---------
9,929
---------
Total Common Stock (Cost $118,345) 168,904
---------
NUMBER
OF SHARES MARKET VALUE
(IN THOUSANDS) (IN THOUSANDS)
- -------------- --------------
SHORT-TERM INVESTMENTS - 1.9%
INVESTMENT COMPANIES - 1.9%
10 Financial Square Prime Obligation Fund $ 10
3,196 Short-Term Investments Co. Liquid Assets Portfolio 3,196
---------
Total Short-Term Investments (Cost $3,206) 3,206
---------
Total Investments - 100.1% (Cost $121,551) 172,110
---------
Liabilities, less Other Assets - (0.1)% (181)
---------
TOTAL NET ASSETS - 100.0% $171,929
========
<F52> Non-income producing
See notes to financial statements.
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
COMMON STOCKS - 93.9%
AIR TRANSPORTATION - 1.1%
137,200 Atlas Air, Inc. <F53> $ 5,059
64,000 Comair Holdings, Inc. 1,288
---------
6,347
---------
AUTOS & TRUCKS - 0.3%
118,900 Ugly Duckling Corporation <F53> 1,873
---------
BIO-TECHNOLOGY - 0.1%
114,200 Perseptive Biosystems, Inc. <F53> 771
---------
BUSINESS MACHINES & SOFTWARE - 3.0%
241,200 Mylex Corporation <F53> 3,075
83,600 National Instruments Corporation <F53> 2,383
159,800 Network General Corporation <F53> 3,855
182,900 Synopsys, Inc. <F53> 8,231
---------
17,544
---------
BUSINESS SERVICES - 4.8%
23,200 AccuStaff, Inc. <F53> 621
86,000 Alternative Resources Corporation <F53> 1,731
138,300 Career Horizons, Inc. <F53> 5,618
22,300 Ciber, Inc. <F53> 792
57,700 Concord EFS, Inc. <F53> 1,673
87,700 Danka Business Systems PLC ADR 3,475
16,450 FIserv, Inc. <F53> 631
114,800 Interim Services, Inc. <F53> 4,592
68,300 National Data Corporation 2,809
191,800 Prepaid Legal Services, Inc. <F53> 2,254
108,000 Robert Half International, Inc. <F53> 4,334
---------
28,530
---------
CHEMICALS - 0.1%
29,700 Airgas, Inc. <F53> 672
---------
CONGLOMERATES - 0.3%
69,400 ITI Technologies, Inc. <F53> 1,995
---------
CONSUMER PRODUCTS - 0.1%
7,900 USA Detergents, Inc. <F53> 261
---------
CONTAINERS - 0.5%
77,100 Sealed Air Corporation <F53> 2,997
---------
DISTRIBUTION - 0.0%
16,100 Peak Technologies Group <F53> 189
---------
DRUGS - 2.9%
52,000 Forest Laboratories, Inc. - Class A <F53> 2,002
178,700 Mylan Laboratories 2,703
303,400 Teva Pharmaceutical Industries, Ltd. ADR 12,705
---------
17,410
---------
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
ELECTRICAL EQUIPMENT - 0.6%
140,500 Cable Design Technologies <F53> $ 3,653
---------
ELECTRONICS - 0.9%
107,100 Checkpoint Systems, Inc. <F53> 2,396
136,400 Gemstar International Group Limited <F53> 3,018
---------
5,414
---------
ENERGY - 0.3%
44,100 AES Corporation <F53> 1,935
---------
ENTERTAINMENT & LEISURE - 3.0%
629,000 Hollywood Entertainment Corporation 13,052
127,700 Movie Gallery, Inc. <F53> 1,724
111,037 Regal Cinemas, Inc. <F53> 2,887
---------
17,663
---------
FINANCE COMPANIES - 0.1%
15,700 ContiFinancial Corporation <F53> 510
---------
FINANCIAL SERVICES - 6.1%
192,400 Credit Acceptance Corporation <F53> 5,195
124,200 Green Tree Financial Corporation 4,921
332,336 Quick and Reilly Group, Inc. 8,765
702,600 The Charles Schwab Corporation 17,565
---------
36,446
---------
HEALTH CARE SERVICES & SUPPLIES - 14.4%
189,500 American Medical Response, Inc. <F53> 5,685
786,812 Health Management Associates, Inc. - Class A<F53> 17,310
249,900 Lincare Holdings, Inc. <F53> 9,371
100,600 Living Centers of America, Inc. <F53> 2,352
411,050 MedPartners, Inc. <F53> 8,683
227,550 Multicare Companies, Inc. <F53> 4,096
98,700 PhyCor, Inc. <F53> 3,060
293,100 Quorum Health Group, Inc. <F53> 7,914
147,700 Renal Treatment Centers <F53> 3,951
153,400 Rotech Medical Corporation <F53> 2,454
60,900 Rural/Metro Corporation <F53> 2,223
75,400 Steris Corporation <F53> 2,846
535,100 Vencor, Inc. <F53> 15,852
---------
85,797
---------
HOSPITAL SUPPLIES & SERVICES - 1.3%
288,700 Omnicare, Inc. 7,867
---------
HOUSING - 3.8%
491,693 Clayton Homes, Inc. 8,297
151,800 Oakwood Homes Corp. 4,023
190,012 Southern Energy Homes, Inc. <F53> 2,826
429,900 Toll Brothers, Inc. <F53> 7,362
---------
22,508
---------
See notes to financial statements.
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
INSURANCE - 13.7%
204,200 AMBAC, Inc. $12,763
52,900 Chartwell Re Corporation 1,342
61,400 Enhance Financial Services Group, Inc. 2,049
175,500 Equitable Iowa Companies 7,349
197,300 Arthur J. Gallagher & Company 5,796
119,300 MGIC Investment Corporation 8,187
192,000 Oxford Health Plans, Inc. <F53> 8,736
379,000 Protective Life Corporation 13,076
197,600 ReliaStar Financial Corporation 10,473
144,500 Vesta Insurance Group, Inc. 3,703
229,800 Western National Corporation 4,136
120,800 Zurich Reinsurance Centre Holdings, Inc. 3,624
---------
81,234
---------
LODGING - 0.8%
209,400 Mirage Resorts, Inc. <F53> 4,607
---------
OFFICE PRODUCTS - 0.8%
54,200 U.S. Office Products Company <F53> 1,572
101,900 Viking Office Products, Inc. <F53> 2,968
---------
4,540
---------
OIL & GAS - DOMESTIC - 2.9%
100,500 Chesapeake Energy Corporation <F53> 5,854
347,400 NGC Corporation 6,253
119,550 Tejas Gas Corporation <F53> 4,857
---------
16,964
---------
OIL & GAS - INTERNATIONAL - 0.1%
17,700 Rutherford-Moran Oil Corporation <F53> 527
---------
OIL & GAS - SERVICES - 1.7%
340,200 Input/Output, Inc. <F53> 10,121
---------
POLLUTION CONTROL - 0.4%
74,460 USA Waste Services, Inc. <F53> 2,383
---------
RESTAURANTS - 2.5%
169,550 Apple South, Inc. 1,992
508,100 Lone Star Steakhouse & Saloon <F53> 13,020
---------
15,012
---------
RETAIL - 7.5%
282,500 Bed Bath and Beyond, Inc. <F53> 7,133
34,700 CompUSA, Inc. <F53> 1,605
87,100 Discount Auto Parts, Inc. <F53> 1,894
485,696 Dollar General Corporation 13,478
98,600 Fastenal Company 4,560
159,200 Friedman's, Inc. - Class A <F53> 2,607
144,500 General Nutrition Companies, Inc. <F53> 2,637
215,450 Just For Feet, Inc. <F53> 5,629
60,700 Kohl's Corporation <F53> 2,185
NUMBER MARKET VALUE
OF SHARES (IN THOUSANDS)
---------- --------------
RETAIL - 7.5% (CONT.)
51,800 MSC Industrial Direct Co., Inc. - Class A <F53> $ 1,917
37,200 Stage Stores, Inc. <F53> 679
---------
44,324
---------
SEMICONDUCTORS - 10.5%
150,500 Altera Corporation <F53> 9,331
527,800 Atmel Corporation <F53> 13,393
164,200 Dallas Semiconductor Corporation 3,284
287,700 Lattice Semiconductor Corporation <F53> 9,854
106,200 Linear Technology Corporation 3,558
330,000 Maxim Integrated Products <F53> 11,550
128,400 Microchip Technology, Inc. <F53> 4,654
75,900 SDL, Inc. <F53> 1,290
164,700 Xilinx, Inc. <F53> 5,394
---------
62,308
---------
SHOES - 0.1%
30,749 Wolverine World Wide, Inc. 761
---------
SOFTWARE - 1.6%
179,500 Business Objects S.A. <F53> 2,670
93,200 EPIC Design Technology, Inc. <F53> 2,283
17,850 McAfee Associates, Inc. <F53> 812
312,500 System Software Associates, Inc. 3,652
---------
9,417
---------
TELECOM EQUIPMENT - 3.4%
115,700 ADC Telecommunications <F53> 7,911
180,000 Aspect Telecommunications Corporation <F53> 10,710
57,800 Glenayre Technologies, Inc. <F53> 1,488
---------
20,109
---------
TELECOMMUNICATIONS - 0.3%
68,800 United States Cellular Corporation <F53> 2,021
---------
TEXTILES & APPAREL - 2.1%
390,700 Jones Apparel Group, Inc. <F53> 12,209
---------
UTILITIES - TELEPHONE - 1.8%
325,500 Century Telephone Enterprises 10,457
---------
Total Common Stock ($451,718) 557,376
---------
See notes to financial statements.
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES VALUE
(IN THOUSANDS) (IN THOUSANDS)
- -------------- --------------
SHORT-TERM INVESTMENTS - 6.2%
INVESTMENT COMPANIES - 1.2%
10 Financial Square Prime Obligation Fund $ 10
6,964 Short-Term Investments Co. Liquid Assets Portfolio 6,964
---------
Total Investment Companies (Cost $6,974) 6,974
---------
PRINCIPAL MARKET
AMOUNT VALUE
(IN THOUSANDS) (IN THOUSANDS)
- -------------- --------------
VARIABLE RATE DEMAND NOTES - 5.0%
$ 5,000 Johnson Controls, Inc. $ 5,000
5,000 Sara Lee Corporation 5,000
10,000 Southwestern Bell 10,000
10,000 Warner-Lambert Co. 10,000
---------
Total Variable Rate Demand Notes (Cost $30,000) 30,000
---------
Total Short-Term Investments ($36,974) 36,974
---------
Total Investments - 100.1% (Cost $488,692) 594,350
---------
Liabilities, less Other Assets - (0.1)% (334)
---------
TOTAL NET ASSETS - 100.0% $594,016
========
<F53> Non-income producing
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
<TABLE>
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
COMMON AND PREFERRED STOCKS 99.6%
AUSTRALIA 2.7%
<S> <C> <C> <C>
1,400 Aberfoyle Non-ferrous Metals $ 2,931
8,300 Amcor Limited Forest Products 51,608
4,200 Ashton Mining Ltd. Non-ferrous Metals 6,495
4,300 Australia Gas & Light Utilities 23,599
11,744 Aust National Industries Conglomerates 11,363
14,776 Boral Limited Construction Materials 36,796
3,200 Brambles Inds Ltd. Business Services 53,041
9,426 Burns Philp & Co. Retail Trade 14,951
7,201 Coca-Cola Amatil Ltd. Food & Beverage 99,086
15,853 Coles Myer Limited Retail Trade 57,960
4,700 CRA Limited Non-ferrous Metals 73,730
7,500 Crown Ltd.<F54> Leisure 16,298
12,904 CSR Limited Conglomerates 43,392
5,916 David Jones, Ltd. Merchandising 8,117
3,100 Delta Gold NL<F54> Gold 5,901
4,518 Email Limited Household Appliances & Furnishings 12,434
1,800 Faulding (FH) & Company Health 12,391
25,500 Fosters Brewing Group Limited Food & Beverage 46,514
4,900 Futuris Corporation Ltd. Industrial Components 6,218
16,275 General Prop Trust Units Real Estate 30,591
8,800 GIO Australia Holdings, Ltd. Insurance 22,682
20,209 Goodman Fielder Ltd. Food & Beverage 23,721
3,800 Great Central MNS Gold 11,543
6,504 Hardie (James) Inds Construction Materials 17,022
3,800 ICI Australia Chemical 37,370
3,900 Leighton Holdings Construction 17,785
3,510 Lend Lease Corporation Limited Real Estate 59,544
26,694 Mim Holdings Limited Non-ferrous Metals 34,720
2,900 Metal Manufactures Industrial Components 6,509
3,933 Newcrest Mining Ltd. Gold 13,600
11,849 North Ltd. Non-ferrous Metals 33,736
20,486 Normandy Mining Ltd. Gold 27,945
13,091 Pacific Dunlop Ltd. Conglomerates 29,070
11,500 Pioneer International Ltd. Construction Materials 30,645
2,800 Plutonic Res NL Gold 13,324
4,361 QBE Insurance Group, Ltd. Insurance 23,104
11,236 QCT Resources Miscellaneous 15,505
3,789 Renison Goldfields Consolidated Ltd. Gold 17,128
2,700 Resolute Samantha Gold 5,482
1,800 Rothmans Holdings Tobacco 11,563
7,090 Santos Ltd. Petroleum Services 28,340
6,909 Schroders Property Fund Mutual Fund 12,767
3,401 Smith (Howard) Conglomerates 26,703
1,100 Sons Of Gwalia Ltd. Gold 7,110
9,583 Southcorp Holdings Ltd. Food & Beverage 29,184
4,978 Stockland Trust Group Real Estate 12,239
8,300 Sydney Harbour Casino<F54> Leisure 11,849
4,600 Tab Corp Holdings, Ltd. Leisure 21,707
9,500 TNT<F54> Transportation 18,308
18,353 Westfield Trust Real Estate 34,496
794 Westfield Trust New Units Real Estate 1,436
----------
1,269,553
----------
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
AUSTRIA 1.6%
<S> <C> <C> <C>
100 Austrian Airlines<F54> Air Travel $ 14,463
300 BBAG Oesterr Brau Food & Beverage 21,047
165 Bk Austria Miscellaneous 11,948
1,800 Bk Austria Ag Banks 132,368
400 Bohler Uddeholm Miscellaneous 29,941
560 Creditanstalt Bank Preferred Banks 26,297
1,020 Creditanstalt Bank Banks 69,596
300 EA-Generali AG Insurance 90,189
650 Flughafen Wien AG Business Services 32,062
100 Lenzing AG Chemicals 6,525
400 Mayr Melnhof Karto<F54> Miscellaneous 19,648
1,100 Oester Elektrizitats Electric Utilities 76,640
957 OMV AG Miscellaneous 93,744
300 Radex Heraklith Miscellaneous 8,593
500 Va Technologie AG Industrial Machinery 69,969
300 Wienerberger Baust Construction Materials 55,579
300 Z Laenderbank Bank Austria AG Preferred Banks 11,834
----------
770,443
----------
BELGIUM 2.0%
300 Barco Nv Electronics 49,343
60 Bekaert SA Industrial Machinery 48,573
525 CBR Cimenteries Construction Materials 41,407
1,310 Delhaize Le Lion Retail Trade 73,291
150 Electrabel Electronics 154
906 Fortis Ag Insurance 127,229
31 Fortis Ag Insurance 16
396 Generale De Banque Banks 138,391
41 Generale De Banque VVPR Banks 26
600 Gevaert Chemicals 40,494
152 Glaverbel Groupe Containers & Glass 16,326
2 Glaverbel Groupe VVPR Containers & Glass -
570 GPE Bruxelles LAM Conglomerates 70,816
305 Kredietbank Banks 98,521
50 Kredietbank VVPR Banks 16,015
25 Royale Belge BBPR Insurance 6
380 Royale Belge Insurance 77,365
205 Solvay Chemicals 122,744
50 Tractebel Intl VVPR Conglomerates 24
600 Union Miniere <F54> Non-ferrous Metals 42,802
----------
963,543
----------
DENMARK 1.4%
545 Carlsberg A Food & Beverage 34,323
440 Carlsberg B Food & Beverage 27,786
4 D/S 1912 B Conglomerates 100,489
2 D/S Svendborg B Conglomerates 71,925
965 Danisco Food & Beverage 55,294
915 Den Danske Bank Banks 65,654
175 FLS Industries B Industrial Machinery 22,347
90 GN Store Nord Telecommunication Services 9,555
450 ISS International Service System Series B Conglomerates 12,776
185 Korn-Og Foderstof Food & Beverage 7,648
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
DENMARK 1.4% (CONT.)
<S> <C> <C> <C>
30 Lauritzen (J) Holding B <F54> Conglomerates $ 2,323
85 NKT Holding Electrical Equipment 4,753
645 Novo Nordisk As B Drugs & Healthcare 107,433
510 OK Ostasiatiske Kompagni <F54> Conglomerates 10,092
155 Radio Meter As B Drugs & Healthcare 9,868
35 Royal Copenhagen Apparel & Textiles 2,831
1,120 Sas Danmark A/S Transportation - Airlines 13,876
139 Sophus Berendsen A Conglomerates 17,101
347 Sophus Berendsen B Conglomerates 42,870
95 Superfos A/S Chemicals 10,871
820 Unidanmark A Banks 37,814
----------
667,629
----------
FINLAND 1.1%
800 Amer Group Conglomerates 18,272
900 Cultor Oy Series 1 Household Products 41,111
500 Instrumentarium Series A Drugs & Healthcare 18,426
3,300 Kesko Retail Trade 50,975
300 Kone Corp B Industrial Machinery 29,658
30,620 Merita Ltd.<F54> Banks 90,544
500 Metra Ab A Conglomerates 28,356
500 Metra Ab B Conglomerates 27,893
4,900 Outokumpu Oy A Non-ferrous Metals 82,719
800 Pohjola A Insurance 17,124
900 Pohjola B Insurance 18,868
600 Sampo (Vakuutusosak) A Insurance 42,237
500 Stockmann Ab (OY) Retail Trade 29,262
----------
495,445
----------
FRANCE 11.6%
1,772 Accor Leisure 222,705
318 Adecco SA Business & Public Services 90,267
1,450 Bic Conglomerates 217,719
110 Bongrain SA Food & Beverage 44,575
1,251 Bouygues Home Builders 122,695
1,315 Canal Plus Broadcasting 325,648
3,086 Casino Guich Perr Leisure 140,520
868 Casino Guich Perr Preferred Leisure 28,717
375 Chargeurs International<F54> Conglomerates 16,297
1,401 Cie Bancaire Financial Services 139,875
125 Cie Gen Geophysique<F54> Petroleum Services 8,932
680 Club Mediterranee Leisure 42,851
260 Comptoirs Modernes Retail Trade 124,498
531 CPR Cie Par Reesco Investment Companies 42,204
733 Credit National Banks 38,744
5,961 CSF (Thomson) Aerospace 186,128
250 DMC Dollfus-Mieg Apparel & Textiles 6,680
1,350 Eridania Beghin-Say Household Products 215,125
500 Essilor International Drugs & Healthcare 131,651
181 Eurafrance Financial Services 79,193
107 Europe 1 Registered Broadcasting 23,209
765 GTM Entrepose Home Builders 36,317
3,398 Havas Business Services 223,376
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
FRANCE 11.6% (CONT.)
<S> <C> <C> <C>
804 Imetal Non-ferrous Metals $ 125,443
4,819 Lagardere Groupe Publishing 152,357
1,440 Legrand Electrical Equipment 250,045
6,154 Michelin (CGDE) Class B Tires & Rubber 296,966
1,466 Moulinex <F54> Household Products 28,125
700 Nord-Est Steel 17,650
375 Pathe<F54> Leisure 101,234
2,835 Pernod-Ricard Food & Beverage 153,177
1,050 Primagaz Domestic Oil 108,531
1,000 Promodes Retail Trade 270,154
200 Sagem SA Electronics 124,506
400 Saint Louis Food & Beverage 101,562
1,000 Salomon SA Toys, Amusement & Sporting Goods 89,660
78 Schneider SA (Ex Spep) Industrial Machinery 3,817
800 Sefimeg Real Estate 61,861
2,600 Seita Beverages & Tobacco 104,800
1,400 Sidel Industrial Machinery 93,485
23 Simco Real Estate 2,004
749 Simco Real Estate 63,636
720 Skis Rossignol Toys, Amusement & Sporting Goods 19,592
366 Sodexho Leisure 176,616
1,000 Sommer Allibert Construction Materials 27,798
800 Technip Industrial Machinery 69,989
450 Unibal SA Financial Services 44,840
406 Union Immobiliere France Real Estate 31,474
12,850 Usinor Sacilor Steel 190,806
3,674 Valeo Industrial Machinery 220,662
----------
5,438,716
----------
GERMANY 18.4%
8,400 Adidas AG Toys, Amusement & Sporting Goods 720,539
4,100 Agiv AG<F54> Construction & Mining 59,609
100 Amb Aach & Mun Bet Insurance 73,354
750 Amb Aach & Mun Bet Registered Insurance 679,025
9,000 Beiersdorf AG Series ABC Drugs & Healthcare 455,591
4,000 Bilfinger & Berger Home Builders 162,041
471 Brau Und Brunnen<F54> Food & Beverage 38,596
3,100 CKAG Colonia Konzern AG Insurance 231,496
500 CKAG Colonia Konzern AG Non-Voting Preferred Insurance 30,564
10,700 Continental AG Industrial Machinery 187,384
900 Degussa AG Chemicals 353,291
3,100 Douglas Holding AG Retail Trade 130,089
177 Dyckerhoff AG Construction Materials 51,467
177 Dyckerhoff AG Non-Voting Preferred Construction Materials 39,302
4,750 Fag Kugelfischer Industrial Machinery 64,350
8,300 Heidelberg Zement Construction Materials 614,327
200 Herlitz AG<F54> Business Services 23,791
200 Herlitz AG Non-Voting Preferred<F54> Business Services 22,072
7,410 Hochtief AG Construction Materials 304,098
112 Holsten Brauerei AG Food & Beverage 26,275
250 Iwka AG Industrial Machinery 53,364
1,550 Karstadt AG Retail Trade 565,732
5,800 Klockner Humboldt-Deutz <F54> Industrial Machinery 27,789
930 Linde AG Industrial Machinery 576,180
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
GERMANY 18.4% (CONT.)
<S> <C> <C> <C>
68,870 Lufthansa AG Air Travel $ 901,154
1,200 Man AG Industrial Machinery 292,228
450 Man AG Non-Voting Preferred Industrial Machinery 88,769
2,800 Preussag AG Conglomerates 674,650
750 PWA Papierwerke Waldhof Forest Products 107,554
222 Rheinmetall Berlin Aerospace 27,880
200 Salamander AG Apparel & Textiles 22,072
10,750 Schering AG Drugs & Healthcare 865,641
1,350 SGL Carbon Miscellaneous Materials & Commodities 152,111
----------
8,622,385
----------
GREAT BRITAIN 8.9%
2,566 Amec Home Builders 4,304
4,700 Anglian Water Business Services 41,635
4,620 Argos Retail Trade 58,042
14,300 Arjo Wiggins Appleton Forest Products 38,306
15,700 Associated British Foods Food & Beverage 107,888
2,750 Barratt Developments Home Builders 11,397
7,200 BBA Group Industrial Machinery 41,974
7,349 BICC Electrical Equipment 35,022
13,700 Blue Circle Industries Construction Materials 88,634
2,343 Bowthorpe Electronics 17,970
8,800 BPB Industries Construction Materials 52,018
7,466 British Land Co. Real Estate 55,682
3,500 Burmah Castrol PLC Petroleum Services 61,183
2,100 Calor Group Gas & Pipeline Utilities 10,088
10,500 Caradon PLC Containers & Glass 41,292
10,800 Carlton Communications Broadcasting 86,615
4,900 Chubb Security Business Services 25,134
9,809 Coats Viyella Apparel & Textiles 24,439
1,160 Cobham PLC Aerospace 11,230
340 Costain Group<F54> Home Builders 260
7,100 Courtaulds PLC Chemicals 52,605
1,200 Courtaulds Textile Apparel & Textiles 5,374
2,430 Dawson International Apparel & Textiles 2,295
3,939 De La Rue Business Services 37,588
1,800 Delta Electrical Equipment 11,094
5,036 East Midlands Electricity Electric Utilities 44,693
7,401 Electrocomponents Electronics 49,834
4,312 English China Clays Mining 13,060
9,740 FKI Electrical Equipment 33,307
7,800 General Accident Insurance 92,848
6,400 GKN Industrial Machinery 120,371
3,900 Great Portland Estates Real Estate 12,066
14,869 Guardian Royal Exchange Insurance 61,016
4,968 Hammerson PLC Real Estate 30,903
9,915 Harrison & Crosfield Miscellaneous 20,666
3,100 Hepworth Construction Materials 15,043
2,317 Hyder PLC Utilities 26,562
1,530 Hyder Cumulative Preferred Utilities 2,604
6,000 IMI Non-ferrous Metals 38,007
3,800 Johnson Matthey Conglomerates 37,808
20,301 Ladbroke Group Hotels & Restaurants 65,951
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
GREAT BRITAIN 8.9% (CONT.)
<S> <C> <C> <C>
1,133 Laing (John) Home Builders $ 4,945
1,700 Laird Group Industrial Machinery 12,789
9,500 Land Securities Real Estate 110,764
16,800 Lasmo Gas Exploration 58,271
21,460 Legal & General GR Insurance 113,223
1,400 Lex Service Business Services 8,298
2,442 London Electricity Electric Utilities 24,058
13,500 Lonrho Conglomerates 32,975
26,501 Lucasvarity PLC<F54> Industrial Components 107,238
4,321 Marley Home Builders 9,253
6,800 MEPC Real Estate 47,338
3,212 Mercury Asset Management Group Financial Services 59,078
1,534 Meyer International Forest Products 10,367
31,771 National Grid Grp Electric Utilities 93,125
6,100 Next Retail Trade 55,427
4,138 Northern Electric Electric Utilities 42,586
1,900 Ocean Group Trucking & Freight Forwarding 14,232
600 Oxford Instruments Electronics 4,788
11,300 P & O Trucking & Freight Forwarding 110,773
17,467 Pilkington Containers & Glass 48,638
3,800 Provident Financial Financial Services 28,495
3,600 Racal Electronics Electronics 16,238
8,100 Railtrack Group Business & Public Services 36,404
8,468 Redland Construction Materials 57,915
8,800 Rexam Construction Materials 50,011
4,700 RMC Group Construction Materials 83,078
27,332 Rolls Royce Automobiles 113,271
27,916 Royal Sun Alliance Insurance 191,607
8,100 Rugby Group Construction Materials 13,256
3,600 Schroders Financial Services 81,778
21,235 Scottish Power Electric Utilities 108,578
26,500 Sears PLC Retail Trade 37,543
6,900 Sedgwick Group Insurance 13,989
6,800 Slough Estates Real Estate 27,461
5,300 Smiths Industries Industrial Machinery 70,770
4,555 Southern Electric Electric Utilities 47,694
3,300 St. James' Place Capital Financial Services 4,836
6,735 T & N Industrial Machinery 14,148
16,043 Tarmac Construction Materials 23,381
6,951 Tate & Lyle Food & Beverage 54,105
4,700 Taylor Woodrow Home Builders 11,863
6,600 Thames Water Business Services 59,541
7,900 Thorn Appliances & Household Durables 44,382
8,751 TI Group Conglomerates 81,012
1,800 Transport Development Railroads & Equipment 5,672
3,300 Unigate Food & Beverage 23,161
7,400 United Biscuits Food & Beverage 25,064
9,121 United Utilities Business Services 84,660
1,100 Value Realisation<F54> Financial Services 1,218
5,800 Vickers Industrial Machinery 27,295
10,100 Williams Holdings Construction Materials 59,702
5,167 Willis Corroon Group Insurance 10,265
2,300 Wilson (Connoly) Holdings Home Builders 5,918
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
GREAT BRITAIN 8.9% (CONT.)
<S> <C> <C> <C>
4,400 Wimpey (George) Home Builders $ 8,885
10,600 Wolseley Construction Materials 82,335
----------
4,160,505
----------
HONG KONG 1.1%
10,000 Applied International Holdings<F54> Electronics 634
12,800 Bank Of East Asia Banks 49,993
40,000 Cathay Pacific Airways Air Travel 62,595
24,315 Chinese Estates Real Estate 22,169
3,799 Dickson Concepts International Retail Trade 12,676
8,000 Giordano International Retail Trade 8,070
16,000 Hang Lung Development Co. Real Estate 31,659
2,720 Hongkong & China Gas Electric Utilities 1,003
35,640 Hongkong & China Gas Warrents (Expire 4/30/98) Electric Utilities 62,686
2,000 Hongkong Aircraft Aerospace 5,096
12,000 Hongkong & Shangai Hotel Conglomerates 22,037
49,000 Hopewell Holdings Real Estate 32,953
13,000 Hysan Development Real Estate 41,695
550 Hysan Development Warrants (Expire 4/30/98) Real Estate 265
5,500 Johnson Electric Holdings Electrical Equipment 12,021
4,800 Kumagai Gumi (HK) Home Builders 3,849
2,000 Lai Sun Garmentt International Apparel & Textiles 3,000
800 Melco International Development Retail Trade 277
8,000 Miramar Hotel & Invest. Hotels & Restaurants 15,519
1,400 Oriental Press Group Publishing 112
14,000 Oriental Press Group Publishing 7,423
7,000 Peregrine Investments Real Estate 11,271
700 Peregrine Investments Real Estate 131
30,000 Regal Hotels International Hotels & Restaurants 8,245
18,000 Shangri-La Asia Leisure 25,723
16,000 Shun Tak Holdings Aerospace 10,553
9,000 Stelux Holdings International Retail Trade 1,967
20,000 South China Morning Post Broadcasting 17,071
6,300 Tai Cheung Holdings Real Estate 5,133
5,000 Television Broadcasts Broadcasting 17,524
1,992 Wing Lung Bank Banks 12,366
2,500 Winsor Industrial Corp. Apparel & Textiles 582
1,250 Winsor Properties Holdings Real Estate 1,714
----------
508,012
----------
IRELAND 0.5%
7,500 Allied Irish Banks Banks 47,615
4,039 CRH Construction Materials 41,619
2,629 Fyffes Food & Beverage 4,280
2,832 Greencore Group Food & Beverage 16,320
4,648 Independent News Newspapers 24,364
2,940 Irish Life Insurance 12,635
1,800 Kerry Group A Food & Beverage 19,486
14,040 Smurfit (Jefferson) Paper 38,168
6,793 Waterfrd Wedgewood Toys, Amusement & Sporting Goods 8,294
2,411 Woodchester Investments Financial Services 8,477
----------
221,258
----------
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
ITALY 7.6%
<S> <C> <C> <C>
9,000 Arn Mondadori Edit Broadcasting $ 66,475
126,500 Banca Commerciale Italiana Banks 218,154
9,500 Banca Naz Agricolt, Non-Convertible Preferred <F54> Banks 3,101
10,000 Banca Naz Agricolt Priv <F54> Banks 2,638
17,500 Banca Naz Agricolt <F54> Banks 8,136
15,000 Banca Popolare Milano Banks 74,191
34,000 Banco Ambros Veneto Banks 68,388
16,000 Banco Ambros Veneto, Non-Convertible Preferred Banks 24,638
12,000 Benetton Group Apparel & Textiles 141,973
6,000 Bulgari Spa Recreation 104,066
8,600 Cartiere Burgo Forest Products 43,472
15,500 Cementir Construction Materials 8,484
157,500 Credito Italiano Ord Banks 160,891
2,000 Danieli Industrial Machinery 12,860
2,000 Danieli, Non-Convertible Preferred Industrial Machinery 6,357
45,000 Edison Ord Electric Utilities 267,831
42,000 IMI Instituto Mobiliare Banks 332,516
34,000 Impregilo Ord <F54> Home Builders 23,207
57,000 Ist Bc S.Paolo (To) Banks 338,312
11,200 Italcementi Construction Materials 59,348
6,000 Italcementi, Non-Convertible Preferred Construction Materials 13,315
47,000 Italgas Gas & Pipeline Utilities 173,575
4,000 La Previdente Insurance 17,542
30,500 Magneti Marelli Industrial Machinery 29,568
4,000 Marzotto & Figli Apparel & Textiles 23,649
34,000 Mediobanca Banks 177,696
278,240 Montedison <F54> Conglomerates 182,025
51,000 Montedison, Non-Convertible Preferred <F54> Conglomerates 32,288
1,000 Olivetti <F54> Computers & Business Equipment 468
4,500 Olivetti, Non-Convertible Preferred <F54> Computers & Business Equipment 1,454
239,250 Olivetti, Priv <F54> Computers & Business Equipment 69,581
94,000 Parmalat Finanziaria Food & Beverage 134,830
106,000 Pirelli Spa Industrial Machinery 188,044
4,000 Pirelli Spa, Non-Convertible Preferred Industrial Machinery 4,630
22,742 Ras Insurance 215,369
9,358 Ras, Non-Convertible Preferred Insurance 45,205
750 Rinascente Spa Retail Trade 322
11,000 Rinascente Retail Trade 65,071
3,000 Rinascente, Non-Convertible Preferred Retail Trade 6,202
2,000 Rinascente, Priv Retail Trade 3,594
9,000 Sai Ord Insurance 70,927
4,000 Sai Ord, Non-Convertible Preferred Insurance 12,504
5,333 Sasib Industrial Machinery 17,216
4,000 Sasib, Non-Convertible Preferred Industrial Machinery 6,925
15,000 Sirti Home Builders 90,118
49,000 SNIA BPD Conglomerates 35,901
2,000 SNIA BPD, Non-Convertible Preferred Conglomerates 1,138
----------
3,584,195
----------
JAPAN 28.7%
12,000 77th Bank Banks 112,889
2,200 Advantest Corp. Electronics 83,172
6,000 Alps Electric Co. Electronics 74,380
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
JAPAN 28.7% (CONT.)
<S> <C> <C> <C>
9,000 Amada Co. Industrial Machinery $ 77,545
3,000 Amano Corporation Pollution Control 35,871
12,000 Aoki Corp.<F54> Home Builders 34,922
2,000 Aoyama Trading Co. Conglomerates 51,169
1,700 Arabian Oil Co. International Oil 70,995
14,000 Asahi Breweries Food & Beverage 144,013
20,000 Ashikaga Bank Banks 107,086
1,000 Autobacs Seven Company Merchandising 78,952
8,000 Brother Industries Household Appliances & Furnishings 39,951
8,000 Casio Computer Co. Toys, Amusement & Sporting Goods 65,764
17,000 Chichibu Onoda Cement Construction Materials 80,411
6,000 Chiyoda Corp. Industrial Machinery 56,972
8,000 Chugai Pharmaceutical Co. Drugs & Healthcare 73,149
10,000 Citizen Watch Co., Ltd. Retail Trade 76,051
20,000 Cosmo Oil Company International Oil 108,317
4,500 Credit Saison Co. Financial Services 104,053
2,000 CSK Corporation Business Services 58,906
11,000 Daicel Chemical Ind. Chemicals 55,706
14,000 Daido Steel Company Steel 57,851
4,000 Daifuku Co. Industrial Machinery 49,235
9,000 Daiichi Pharmaceutical Company Drugs & Healthcare 129,770
8,000 Daikin Industries Industrial Machinery 75,963
5,000 Daikyo Inc. Real Estate 31,124
8,000 Daimaru Inc. Apparel & Textiles 48,250
26,000 Dainippon Ink Chemicals 111,324
5,000 Dainippon Screen Mfg. Co. Electronics 39,520
4,000 Daito Trust Construction Construction & Mining 50,642
4,000 Daiwa Kosho Lease Co. Real Estate 36,575
13,000 Denki Kagaku Kogyo K.K. Chemicals 39,203
9,000 Ebara Corp. Industrial Machinery 129,770
8,350 Eisai Co. Drugs & Healthcare 149,763
4,000 Ezaki Glico Co. Food & Beverage 37,278
10,000 Fujikura Industrial Machinery 76,226
14,000 Fujita Corp. Home Builders 51,943
4,000 Fujita Kanko Inc. Leisure 73,149
21,000 Furukawa Electric Co. Electrical Equipment 111,518
3,000 Gakken Co. <F54> Broadcasting 20,309
8,000 Gunze Limited Apparel & Textiles 45,015
28,000 Hankyu Corp.<F54> Railroads & Equipment 140,812
6,000 Hankyu Department Stores Retail Trade 71,743
12,000 Haseko Corp.<F54> Home Builders 40,830
9,000 Hazama Corp. Home Builders 31,651
8,000 Higo Bank Banks 58,941
1,000 Hirose Electric Co. Electronics 59,434
22,000 Hokuriku Bank Banks 121,663
4,000 House Food Corp. Food & Beverage 69,281
4,000 Hoya Corp. Drugs & Healthcare 131,528
7,000 Inax Corporation Construction Materials 59,574
7,000 Isetan Co. Retail Trade 93,547
8,000 Ishihara Sangyo Kaisha <F54> Industrial Machinery 23,985
7,000 Itoham Foods Inc. Food & Beverage 45,542
7,000 Iwatani International Electric Utilities 35,080
5,000 Jaccs Co. Financial Services 39,740
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
JAPAN 28.7% (CONT.)
<S> <C> <C> <C>
36,000 Japan Energy Corp. Miscellaneous $118,375
4,000 Japan Metal & Chemicals <F54> Chemicals 15,298
10,000 Japan Steel Works<F54> Steel 26,728
5,000 JGC Corp. Electronics 52,752
4,000 Kaken Pharmaceutical Co. Drugs & Healthcare 27,150
8,000 Kamigumi Co. Business Services 61,896
6,500 Kandenko Co. Home Builders 70,292
14,000 Kanebo <F54> Apparel & Textiles 33,972
10,000 Kaneka Corp. Chemicals 56,269
8,000 Kansai Paint Co. Chemicals 35,660
2,000 Katokichi Co. Food & Beverage 39,916
18,000 Kawasaki Kisen Kaisha <F54> Trucking & Freight Forwarding 47,793
16,420 Keihin Electric Express Railroads & Equipment 85,319
6,000 Kikkoman Corp. Food & Beverage 42,571
8,700 Kinden Corporation Home Builders 121,619
2,200 Kissei Pharmaceutical Co. Drugs & Healthcare 54,739
4,000 Kokuyo Co. Business Services 99,174
2,000 Komori Corporation Industrial Machinery 45,015
1,000 Konami Co. Business Services 32,706
12,000 Konica Corporation Photography 80,288
7,000 Koyo Seiko Co. Industrial Machinery 61,544
22,000 Kumagai Gumi Co. Construction Materials 69,633
7,000 Kurabo Industries Apparel & Textiles 23,140
11,000 Kuraray Co. Chemicals 106,383
6,000 Kureha Chemical Ind Co. Chemicals 27,220
4,400 Kurita Water Industries Business Services 88,588
14,000 Kyowa Hakko Kogyo Co. Drugs & Healthcare 113,610
3,000 Kyudenko Corp. Electrical Equipment 34,552
9,000 Lion Corp. Drugs & Healthcare 45,815
3,000 Maeda Road Construction Construction Materials 43,257
3,000 Makino Milling Machine Industrial Machinery 23,343
5,000 Makita Corp. Electrical Equipment 68,577
10,000 Maruha Corp. <F54> Food & Beverage 31,212
9,000 Meiji Milk Products Co. Food & Beverage 52,699
12,000 Meiji Seika Kaisha Food & Beverage 67,100
13,000 Minebea Co. Industrial Machinery 109,610
5,000 Misawa Homes Co. Home Builders 40,531
16,000 Mitsubishi Gas Chemical Chemicals 65,412
5,000 Mitsubishi Logistics Corp. Business Services 76,930
14,000 Mitsubishi Oil Co. International Oil 103,271
9,000 Mitsubishi Paper Mills Paper 43,362
19,000 Mitsubishi Rayon Chemicals 74,670
27,000 Mitsui Engineering & Shipbuilding<F54> Industrial Machinery 68,129
16,000 Mitsui Mining & Smelting Mining 58,097
36,000 Mitsui Osk Lines <F54> Trucking & Freight Forwarding 100,651
4,000 Mitsui-Soko Co. Trucking & Freight Forwarding 30,983
26,000 Mitsui Toatsu Chemicals Chemicals 90,979
3,000 Mori Seiki Co. Industrial Machinery 44,312
9,000 Mycal Corporation Merchandising 138,474
4,000 Nagase & Co. Chemicals 34,113
26,000 Nagoya Railroad Co. Railroads & Equipment 105,381
1,300 Namco Leisure 38,975
15,650 Nankai Electric Railway Railroads & Equipment 89,574
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
JAPAN 28.7% (CONT.)
<S> <C> <C> <C>
11,000 NGK Insulators Electrical Equipment $111,219
7,000 NGK Spark Plug Co. Industrial Machinery 72,006
14,600 Nichido Fire & Marine Insurance 91,138
9,000 Nichirei Corp. Household Products 53,886
10,000 Nihon Cement Co. Construction Materials 63,478
9,000 Niigata Engineering<F54> Industrial Machinery 28,328
12,000 Nikon Corporation Electronic Components 132,935
4,000 Nippon Beet Sugar Mfg. Co. Food & Beverage 17,232
4,000 Nippon Comsys Corp. Computers & Business Equipment 51,345
18,000 Nippon Fire & Marine Insurance 94,953
16,000 Nippon Light Metal Co. Non-ferrous Metals 77,088
7,000 Nippon Meat Packers Food & Beverage 91,700
4,000 Nippon Sharyo Industrial Machinery 36,223
14,000 Nippon Sheet Glass Co. Containers & Glass 58,467
9,000 Nippon Shinpan Co. Financial Services 54,519
7,000 Nippon Shokubai Co. Chemicals 58,344
8,000 Nippon Suisan Kaisha <F54> Food & Beverage 30,666
9,000 Nishimatsu Construction Construction & Mining 83,084
7,000 Nisshinbo Industries Apparel & Textiles 60,990
4,000 Nissin Food Products Co. Food & Beverage 90,382
5,000 Nitto Denko Corp. Electronics 74,292
6,000 NOF Corp. Chemicals 32,759
5,000 Noritake Co. Toys, Amusement & Sporting Goods 45,279
18,000 NSK Industrial Machinery 119,325
15,000 NTN Corp. Industrial Machinery 91,129
22,630 Odakyu Electric Railway Railroads & Equipment 139,871
333 OJI Paper Company<F54> Forest Products 2,436
4,000 Okamoto Industries Tires & Rubber 21,241
4,000 Okuma Corp. <F54> Industrial Machinery 38,333
7,000 Okumura Corp. Home Builders 49,235
9,000 Olympus Optical Co. Photography 80,710
5,000 Onward Kashiyama Co. Apparel & Textiles 69,896
11,000 Orient Corp. Financial Services 67,602
2,000 ORIX Corp. Financial Services 74,556
1,000 OYO Corporation Business & Public Services 50,906
12,000 Penta-Ocean Construction Home Builders 66,678
6,000 Pioneer Electronic Corp. Household Appliances & Furnishings 118,692
5,000 Q.P. Corp. Conglomerates 43,564
7,000 Renown <F54> Apparel & Textiles 22,156
4,000 Sanden Corp. Electrical Equipment 29,822
7,000 Sankyo Aluminium Ind. Co. Aluminum 35,757
2,000 Sanrio Co.<F54> Retail Trade 18,815
7,000 Sanwa Shutter Corp. Construction Materials 57,913
11,000 Sapporo Breweries Food & Beverage 96,422
8,000 Sato Kogyo Company Construction & Housing 38,403
3,000 Sega Enterprises Toys, Amusement & Sporting Goods 121,329
5,000 Seino Transportation Co. Railroads & Equipment 69,457
7,000 Seiyu Apparel & Textiles 70,775
2,000 Shimachu Co. Retail Trade 55,038
4,000 Shimano Inc. Leisure 71,391
11,000 Shionogi & Co. Drugs & Healthcare 85,590
34,000 Showa Denko K.K. <F54> Chemicals 90,575
3,000 Skylark Co. Hotels & Restaurants 54,334
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
JAPAN 28.7% (CONT.)
<S> <C> <C> <C>
2,000 SMC Corporation Machinery & Engineering $ 129,770
11,000 Snow Brand Milk Food & Beverage 68,182
6,000 Sumitomo Forestry Co. Forest Products 84,931
19,000 Sumitomo Heavy Ind.<F54> Industrial Machinery 66,986
18,000 Sumitomo Metal Mining Co. Non-ferrous Metals 141,322
13,000 Sumitomo Osaka Cement Co. Construction Materials 53,148
3,000 Taiyo Yuden Co. Electronics 38,773
7,000 Takara Shuzo Co. Food & Beverage 61,544
4,000 Takara Standard Co. Household Products 37,278
10,000 Takashimaya Co. Retail Trade 143,309
3,000 Takuma Co. Telecommunication Services 34,289
8,000 Teikoku Oil Co. International Oil 49,165
6,000 Toa Corporation Home Builders 34,922
4,000 Toei Company Leisure 29,436
500 Toho Co Leisure 76,930
5,000 Tokyo Broadcasting Broadcasting 76,490
5,000 Tokyo Dome Corp. Leisure 94,074
5,000 Tokyo Steel Manufacturing Metals - Steel 77,369
3,000 Tokyo Style Co. Apparel & Textiles 45,630
7,000 Tokyo Tatemono Co.<F54> Real Estate 37,665
8,000 Tokyotokeibe Co. Leisure 30,244
20,000 Tosoh Corp. <F54> Chemicals 78,249
11,000 Toto Construction Materials 144,101
5,000 Toyo Engineering Electronics 28,310
2,000 Toyo Exterior Co. Home Builders 39,740
23,000 Toyobo Co. Apparel & Textiles 70,573
1,000 Trans Cosmos Inc Business & Public Services 37,366
6,000 Tsubakimoto Chain Co. Industrial Machinery 36,874
27,000 Ube Industries Chemicals 87,357
2,000 Uni-Charm Corp. Household Products 48,708
2,000 Uniden Corp. Household Products 33,234
13,000 Unitika <F54> Chemicals 32,117
6,000 Uny Company Merchandising 103,921
5,000 Wacoal Corporation Textiles & Apparel 59,785
6,000 Yamaguchi Bank Banks 89,678
6,000 Yamaha Corp. Toys, Amusement & Sporting Goods 91,261
12,000 Yamato Transport Co. Trucking & Freight Forwarding 124,494
7,000 Yamazaki Baking Co. Food & Beverage 111,394
8,000 Yokogawa Electric Corp. Electronics 71,039
----------
13,457,634
----------
MALAYSIA 0.6%
2,000 AMMB Holdings Financial Services 13,535
2,000 Amsteel Corp. Steel 1,456
1,000 Aokam Perdana<F54> Paper 1,330
2,250 Berjaya Group Leisure 1,073
1,000 Berjaya Leisure Leisure 1,243
1,000 Commerce Asset-Holding Financial Services 6,530
5,000 DCB Holdings Financial Services 17,117
1,000 Edaran Otomobil Nasional Retail Trade 9,340
1,000 Ekran Building Construction 4,195
400 Faber Group <F54> Leisure 385
3,000 Golden Hope Plantations Food & Beverage 5,105
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
MALAYSIA 0.6% (CONT.)
<S> <C> <C> <C>
3,000 Golden Plus Holdings Miscellaneous Materials & Commodities $ 5,723
1,000 Guinness Anchor Food & Beverage 2,573
1,000 Highlands & Lowlands Food & Beverage 1,741
1,000 Hong Leong Properties Real Estate 1,330
1,000 Hume Industries Construction Materials 6,293
1,000 Idris Hydraulic <F54> Financial Services 1,187
1,000 IGB Corp. Real Estate 1,033
3,000 IOI Corp. Chemicals 4,726
1,000 Jaya Tiasa Holdings Forest Products 5,660
1,000 Johan Holdings Industrial Machinery 890
1,000 Kedah Cement Holdings Construction Materials 1,852
1,000 Kemayan Corp. Agricultural Machinery 1,417
2,500 Kuala Lumpur Kepong Food & Beverage 6,283
1,500 Land & General Forest Products 3,265
1,000 Landmarks Hotels & Restaurants 1,338
4,000 Leader Universal Holdings Electrical Equipment 8,944
125 Lion Land Berhad Real Estate 125
4,500 Magnum Corp. Leisure 7,765
1,000 Malayan Cement Construction Materials 2,236
4,000 Malayan United Industries Financial Services 2,897
3,333 Malaysia Int'l. Shipping Containers & Glass 9,959
2,000 Malaysia Mining Corp. Mining 2,129
5,000 Malaysian Airline System Air Travel 12,566
1,200 Malaysian Mosaics Real Estate 1,426
1,000 Malaysian Pacific Electronics 3,879
2,000 Malaysian Resources Corp. Mining 7,678
2,000 MBF Capital Financial Services 2,755
3,000 Metroplex Real Estate 3,455
2,000 Mulpha International Conglomerates 1,662
2,000 Multi-Purpose Holdings Conglomerates 3,419
1,000 Mycom Real Estate 1,211
1,000 Nestle Food & Beverage 7,836
1,000 New Straits Times Newspapers 5,264
2,000 Pan Malaysia Cemt Construction Materials 2,153
1,250 Perlis Plantations Mining 3,587
2,000 Perusahaan Otomobil Automobiles 12,665
1,000 Promet<F54> Industrial Machinery 811
2,666 Public Bank Banks 5,001
1,000 Rashid Hussain Financial Services 6,253
1,000 RJ Reynolds Food & Beverage 2,909
1,000 Rothmans Pall Mall Tobacco 9,855
1,000 Selangor Properties Real Estate 1,033
1,000 Shell Refining Co. International Oil 2,889
1,000 Sungei Way Holdings Building Construction 5,699
2,000 TA Enterprise Financial Services 2,739
1,000 Tan Chong Motor Holdings Industrial Machinery 1,702
2,000 Technology Resources Industries <F54> Conglomerates 4,789
1,500 Time Engineering Industrial Machinery 2,933
1,000 UMW Holdings Industrial Machinery 4,591
2,252 UTD Engineers Industrial Machinery 17,826
1,500 YTL Corp. Home Builders 8,074
-------
287,335
-------
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
NETHERLANDS 2.9%
<S> <C> <C> <C>
7,754 Getronics NV Computers & Business Equipment $ 190,661
299 Hollandsche Beton Groep Home Builders 55,519
2,392 IHC Caland NV Home Builders 133,571
7,970 KLM Air Travel 189,863
9,153 Koninklijke KNP BT NV Paper 201,853
2,884 Kon Hoogovensnv Steel 102,714
1,888 Nedlloyd (Kon.) Trucking & Freight Forwarding 47,425
1,660 OCE-Van der Grinten NV Computers & Business Equipment 177,168
2,837 Pakhoed (Kon.) Petroleum Services 88,327
2,792 Stad Rotterdam Insurance 105,200
2,695 Stork NV Industrial Machinery 84,383
---------
1,376,684
---------
NORWAY 1.0%
1,100 Aker A Conglomerates 23,035
200 Aker B Conglomerates 3,890
1,600 Bergesen (Dy) A Trucking & Freight Forwarding 35,011
600 Bergesen (Dy) B, Non-Voting Preferred Trucking & Freight Forwarding 12,988
700 Dyno Industrier Chemicals 15,921
1,400 Elkem Non-ferrous Metals 18,666
2,875 Hafslund ASA - A Drugs & Healthcare 22,323
1,322 Hafslund ASA - B Drugs & Healthcare 9,746
500 Helikopter Service Miscellaneous 5,568
1,500 Kvaerner As Agricultural Machinery 55,512
800 Leif Hoegh & Co. Trucking & Freight Forwarding 13,615
1,000 Norske Skogsindust A Paper 28,548
200 Norske Skogsindust B Paper 5,145
2,375 Nycomed A<F54> Drugs & Healthcare 33,156
1,222 Nycomed B<F54> Drugs & Healthcare 16,484
1,200 Orkla A Food & Beverage 76,798
400 Orkla B Food & Beverage 23,403
800 Petroleum Geo-Services <F54> Energy Equipment & Services 27,231
9,700 Uni Storebrand Ord <F54> Insurance 56,905
500 Unitor Containers & Glass 5,490
---------
489,435
---------
NEW ZEALAND 0.5%
46,575 Brierley Investments Limited Investment Companies 42,503
30,100 Carter Holt Harvey Forest Products 67,712
1,278 Fisher & Paykel Industries Household Appliances & Furnishings 4,674
6,425 Fletcher Challenge - Building Shares Forest Products 17,408
12,850 Fletcher Challenge - Paper Shares Forest Products 23,271
13,957 Fletcher Challenge - Forest Division Forest Products 23,301
6,425 Fletcher Challenge Ltd Forest Products 18,317
9,500 Lion Nathan Limited Food & Beverage 24,530
1,300 Wilson & Horton Publishing 10,116
---------
231,832
---------
SINGAPORE 0.6%
2,000 Amcol Hldgs Electronics 3,719
5,000 Comfort Group Transportation - Road & Rail 4,436
1,000 Creative Technology<F54> Electronic Components 6,175
2,000 Cycle & Carriage Automobiles 21,008
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
SINGAPORE 0.6% (CONT.)
<S> <C> <C> <C>
9,000 DBS Land Real Estate $ 28,361
4,000 First Capital Corp. Hotels & Restaurants 9,255
4,400 Fraser & Neave Food & Beverage 43,719
2,000 Hai Sun Hup Group Trucking & Freight Forwarding 1,412
1,000 Haw Par Bros. Int'l. Conglomerates 2,030
9,000 Hotel Properties Hotels & Restaurants 13,797
32,000 IPC Corp. Data Processing & Reproduction 11,810
1,000 Inchcape Berhad Business Services 3,251
1,000 Jurong Shipyard Industrial Machinery 4,684
5,000 Keppel Corp. Industrial Machinery 37,260
2,000 Lum Chang Holdings Home Builders 1,618
1,200 Metro Holdings Retail Trade 3,884
2,000 Natsteel Steel 3,449
4,000 Neptune Orient Lines Nol Trucking & Freight Forwarding 3,350
1,000 Overseas Union Ent. Leisure 4,897
2,000 Parkway Holdings Real Estate 7,452
2,000 Robinson & Co. Merchandising 8,233
1,000 Shangri-La Hotel Hotels & Restaurants 3,435
6,000 Singapore Technology Industries Multi-Industry 13,030
2,000 Straits Trading Co. Non-ferrous Metals 4,599
10,000 United Overseas Land Real Estate 14,265
13,000 UTD Industrial Corp. Conglomerates 10,795
1,000 Van Der Horst Machinery & Engineering 3,690
---------
273,614
---------
SPAIN 4.2%
833 Acerinox Aluminum 99,980
3,134 Aguas De Barcelona Business Services 128,335
8,950 Argentaria Corp Bc Banks 351,049
16,342 Autopistas CESA (Acesa) Business Services 187,810
11,700 BCO Central Hispano Registered Banks 273,512
1,150 Alba (Corp Financiera) Conglomerates 97,431
2,150 Corporacion Mapfire Insurance 106,256
4,000 Dragados Y Construction Home Builders 53,658
3,350 Ebro Agricolas Food & Beverage 42,310
1,000 ENCE (Empresa Nacl Celulosa) Forest Products 12,865
1,000 Fomento Const Y Contra Home Builders 81,271
1,500 Metrovacesa Real Estate 52,363
1,900 Urbis (Inmobilaria)<F54> Real Estate 7,840
500 Portland Valderrivas Construction Materials 30,790
4,250 Prosegur Seguridad Business & Public Services 34,673
2,650 Tabacalera Food & Beverage 97,082
20,800 Union Electrica Fenosa Electric Utilities 135,104
3,650 Uralita Construction Materials 28,633
3,000 Vallehermoso SA Real Estate 59,306
1,650 Viscofan Aluminum 23,558
667 Zardoya Otis Industrial Machinery 68,073
---------
1,971,899
---------
SWEDEN 2.0%
2,000 AGA Series A Chemicals 32,904
1,700 AGA Series B Chemicals 27,321
1,900 Atlas Copco Series A Industrial Machinery 39,363
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
NUMBER MARKET
OF SHARES INDUSTRY VALUE
- --------- -------- -------
SWEDEN 2.0% (CONT.)
<S> <C> <C> <C>
900 Atlas Copco Series B Construction & Mining $ 18,577
800 Autoliv Industrial Machinery 34,001
770 Diligentia<F54> Real Estate 9,912
1,100 Electrolux Series B Household Appliances & Furnishings 61,330
300 Esselte AB Series A Electronics 6,627
200 Esselte AB Series B Electronics 4,479
600 Hennes & Mauritz Series B Retail Trade 79,610
800 Scanem AB Building Materials & Components 29,858
1,200 Securitas AB Series B Business Services 31,076
7,700 Skand. Enskilda Banken Series A Banks 64,514
1,600 Skandia Foersaekrings Insurance 44,969
2,000 Skanska Series B Home Builders 85,307
800 SKF Series A Construction & Mining 17,488
1,000 SKF Series B Industrial Machinery 22,165
1,900 Stadshpotek AB Miscellaneous 49,928
3,800 Stora Kopparbergs Series A Forest Products 49,783
1,000 Stora Kopparbergs Series B Forest Products 12,872
3,000 Svenska Cellulosa Forest Products 63,066
3,200 Svenska Handelsbk Series A Banks 78,970
300 Svenska Handelsbk Series B Banks 7,175
9,300 Swedish Match<F54> Beverages & Tobacco 27,768
1,800 Trelleborg Series B Mining 23,307
---------
922,370
---------
SWITZERLAND 2.2%
544 Adecco Sa Business & Public Services 153,428
65 Alusuisse-Lonza Hldg Non-ferrous Metals 47,251
140 Alusuisse-Lonza Hldg Registered Aluminum 102,550
80 Danzas Holding Household Products 16,970
50 Distefora Holdings Ag<F54> Merchandising 2
65 Distefora Holdings Ag<F54> Merchandising 855
15 Fischer (Georg) Inhaber AG Industrial Machinery 14,384
15 Fischer (Georg) Inhaber AG Registered Industrial Machinery 2,789
45 Forbo Holding Registered Construction Materials 17,947
240 Holderbk FN Glarus Financial Services 166,839
15 Jelmoli Holding AG<F54> Retail Trade 7,508
45 Jelmoli Holding AG Registered<F54> Retail Trade 4,388
10 Kuoni Reisen Series B Leisure 22,603
15 Moevenpick Holdings Leisure 3,933
10 Moevenpick Holdings Registered Leisure 2,661
35 Schindler Holding AG Industrial Machinery 7
50 Schindler Holding AG Industrial Machinery 51,164
55 SGS Holding Business Services 125,407
65 Sika Finanz Inhaber AG Construction Materials 15,131
125 SMH AG Neuenburg Toys, Amusement & Sporting Goods 76,964
510 SMH AG Neuenburg Registered Toys, Amusement & Sporting Goods 71,919
35 Sulzer AG Industrial Machinery 18,630
80 Sulzer AG Registered Industrial Machinery 45,698
80 Swissair <F54> Air Travel 62,604
120 Valora Holdings Ag Merchandising 20,402
---------
1,052,034
---------
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
Market
Value
--------
<S> <C>
Total Common and Preferred Stocks (Cost $47,028,354) $46,764,521
-----------
Total Investments - 99.6% (Cost $47,028,354) 46,764,521
-----------
Other Assets, less Liabilities 0.4% 186,142
-----------
TOTAL NET ASSETS 100.0% $46,950,663
============
<FN>
<F54> Non-income producing
See notes to the financial statements.
</TABLE>
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 objective of the Balanced Fund is to achieve a
balance of capital appreciation and current income with relatively low
volatility of capital. The objective of the Growth and Income Fund is to seek
both reasonable income and long-term capital appreciation. The objective of the
Equity Index Fund is to seek returns, before Fund expenses, comparable to the
price and yield performance of publicly traded common stocks in the aggregate,
as represented by the S&P 500 Stock Index. The objective of the MidCore Growth
Fund is capital appreciation through investment in securities of medium- to
large-sized companies. The objective of the Special Growth Fund is capital
appreciation through investment in securities of small- to medium-sized
companies. The objective of the International Equity Fund is to seek capital
appreciation through investment in foreign equity securities of small- to
medium-sized companies.
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 - It is each Fund's policy to meet the requirements of
the Internal Revenue Code applicable to regulated investment companies and each
Fund intends to distribute investment company net taxable income and net capital
gains to shareholders. Therefore, no federal income tax provision is required.
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 risk associated with the use of futures contracts includes
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) Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
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. 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
------ ------ ------ ------ ------ ------
YEAR ENDED OCTOBER 31, 1996:
Series A shares:
Shares sold $ 7,996 296 $22,872 751 $19,090 418
Shares issued to owners in
reinvestment of dividends 923 35 2,501 90 638 14
Shares redeemed (3,691) (137) (6,621) (220) (3,814) (84)
------- ------ ------- ------ ------- -------
Net increase $ 5,228 194 $18,752 621 $15,914 348
======= ====== ======= ====== ======= =======
Series Institutional shares:
Shares sold $ 57,666 2,169 $60,451 2,000 $94,687 2,097
Shares issued to owners in
revinvestment of
dividends 4,416 167 9,106 326 4,694 104
Shares redeemed (46,623) (1,749) (41,195) (1,359) (60,130) (1,272)
-------- ------- -------- ------- -------- -------
Net increase $ 15,459 587 $28,362 967 $39,251 929
======= ======= ======== ======= ======== =======
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
SeriesA 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)
================== ========== ======== ========= =======
Funds were as follows:
MIDCORE GROWTH SPECIAL GROWTH INTERNATIONAL
FUND FUND EQUITY FUND
-------------- --------------- --------------
Amount Shares Amount Shares Amount Shares
------ ------ ------- ------ ------ ------
YEAR ENDED OCTOBER 31, 1996:
Series A shares:
Shares sold $ 6,366 223 $ 32,914 823 $ 2,392 118
Shares issued to owners in
reinvestment of dividends - - 9,553 257 40 2
Shares redeemed (1,982) (69) (20,050) (501) (387) (19)
------- ------ -------- ------ ------- -------
Net increase $ 4,384 154 $ 22,417 579 $ 2,045 101
========== ====== ========= ====== ========= =======
Series Institutional shares:
Shares sold $ 43,852 1,555 $ 133,433 3,375 $ 15,332 756
Shares issued to owners in
revinvestment of dividends - - 42,665 1,144 713 37
Shares redeemed (48,915)(1,701) (133,420) (3,376) (5,919) (291)
--------------- --------- ------- ------- ------
Net increase $ (5,063) (146) $ 42,678 1,143 $ 10,126 502
=========== ====== ========== ===== ======== ======
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)
================= ========== ======== ========= =======
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, 1996, were
as follows:
BALANCED GROWTH AND EQUITY
FUND INCOMEFUND INDEXFUND
--------- ------------ --------------
Purchases:
U.S. Government $19,525 - -
Other 87,042 $149,752 $77,535
Sales:
U.S. Government 10,775 - -
0 Other 78,259 117,697 15,592
MIDCORE SPECIAL INTERNATIONAL
GROWTHFUND GROWTHFUND EQUITY FUND
----------- ----------- --------------
Purchases:
U.S. Government - - -
Other $89,924 $567,928 $25,343
Sales:
U.S. Government - - -
Other 91,323 543,280 12,882
Equity Index Fund transactions in futures contracts during the period October
31, 1995 to October 31, 1996, in thousands, were as follows:
AGGREGATE
NUMBER OF FACE VALUE OF
CONTRACTS CONTRACTS <F55>
----------- --------------
Outstanding at October 31, 1995 29 $ 8,435
Contracts opened 389 127,823
Contracts closed (411) (133,916)
------- ----------
Outstanding at October 31, 1996 7 $ 2,342
======= ==========
<F55> 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, 1996 were as follows:
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
------------ --------------
S&P 500 Financial Futures Contract
Expiration date 12/96 <F56> 7 $142
<F56> At October 31, 1996, U.S. Treasury Bills of $1,045, 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, 1996, 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 $27,887 $71,094 $87,716 $52,819 $128,759 $ 4,084
(Depreciation) (2,894) (2,383) (4,673) (2,376) (23,180) (4,636)
------- ------- ------- ------- -------- -------
Net unrealized appreciation
(depreciation)
on investments $24,993 $68,711 $83,043 $50,443 $105,579 $ (552)
======= ======= ======= ======= ======== ========
At October 31, 1996, the cost of investments, in thousands, for federal
income tax purposes was $132,580, $226,324, $168,023, $121,667, $488,771 and
$47,316 for the Balanced, Growth and Income, Equity Index, MidCore Growth,
Special Growth and International Equity Funds, respectively.
For the year ended October 31, 1996, the MidCore Growth Fund utilized, in
thousands, capital loss carryovers of $4,999. For the year ended October 31,
1996, the following percent of dividends paid from net investment income
qualifies for the dividend received deduction available to corporate
stockholders: Balanced Fund 9%, Growth and Income Fund 50%, Equity Index Fund
83% and Special Growth Fund 8%.
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. FIRMCO entered 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, 1996, 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% <F57><F58>
Fees waived $310 $18 - $9 - $332
<F57> 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.
<F58> 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 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, 1996, $103, $175, $160, $116, $394 and $30 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, incurred by the
Balanced, Growth and Income, Equity Index, MidCore Growth, Special Growth and
International Equity Funds aggregated $64, $138, $71, $34, $252 and $7
respectively, for the year ended October 31, 1996.
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 12, 1996, a distribution of approximately $5.26 per share
(including $1.74 taxable to shareowners as ordinary income dividends and $3.52
applicable to long-term capital gains), aggregating $75,452, in thousands, was
paid by the Special Growth Fund to the shareowners of record on November 11,
1996, of both the Series A and Series Institutional Shares.
On November 12, 1996, a distribution of approximately $2.73 per share
(including $0.75 taxable to shareowners as ordinary income dividends and $1.98
applicable to long-term capital gains), aggregating $25,163, in thousands, was
paid by the Growth and Income Fund to the shareowners of record on November 11,
1996, 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, 1996, 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, 1996, 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, 1996 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
/s/ Price Waterhouse LLP
Milwaukee, Wisconsin
December 6, 1996
- - 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
NASD Ref #C96-1129-001
