SEMI-ANNUAL REPORT
April 30, 1996
PORTICO FUNDS
MONEY MARKET FUND
U.S. TREASURY MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
TAX-EXEMPT MONEY MARKET FUND
NOTICE TO INVESTORS
- -Shares of Portico Funds:
- ARE NOT INSURED BY THE
FDIC, the US Government or any
other governmental agency;
- are not bank deposits or obligations
of or guaranteed by Firstar Bank, its parent company or its affiliates;
- are subject to investment risks,
including possible loss of principal; and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and
an independent third-party distributor.
- -There can be no assurance that the money market funds will be able to maintain
a stable net asset value of $1.00 per share.
- -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
PORTICO MONEY MARKET FUNDS YIELD COMPARISONS........................2
LOOKING AHEAD - THE FORECAST........................................2
STATEMENT OF ASSETS AND LIABILITIES.................................3
STATEMENT OF OPERATIONS.............................................4
STATEMENT OF CHANGES IN NET ASSETS..................................5
FINANCIAL HIGHLIGHTS...............................................6-7
SCHEDULE OF INVESTMENTS............................................8-13
NOTES TO FINANCIAL STATEMENTS.....................................14-15
May 1996
DEAR SHAREOWNER:
INVESTMENT REVIEW
The Federal Reserve Board lowered short-term interest rates in December 1995 and
again in January 1996 a total of 50 basis points. Money market rates reflected
those drops but have risen slightly over the last two months in reaction to
indications of stronger economic growth and concerns over potential inflationary
pressures. Additionally, strong corporate earnings have helped in maintaining
the high credit quality of our funds.
Portico money market funds are managed with quality and safety of principal as
our primary goals. All securities purchased by the Funds must meet strict
guidelines set by the SEC for presenting minimal credit risk, as well as our own
high internal standards. Our credit research team closely monitors all
investments to ensure quality standards are met.
PORTICO MONEY MARKET FUNDS 7-DAY YIELDS<F1>
------------------------------------------
PERIOD ENDED APRIL 30, 1996
MONEY MARKET FUND
- -----------------
CURRENT EFFECTIVE
4.76% 4.87%
U.S. TREASURY
MONEY MARKET FUND
- -----------------
CURRENT EFFECTIVE
4.55% 4.65%
U.S. GOVERNMENT
MONEY MARKET FUND
- -----------------
CURRENT EFFECTIVE
4.72% 4.83%
TAX-EXEMPT
MONEY MARKET FUND
- -----------------
CURRENT EFFECTIVE
3.41% 3.46%
<F1>After fee waivers. Had fees not been waived, current and effective yields
would have been 4.55% and 4.66% for the Money Market Fund; 4.36% and 4.46% for
the U.S. Treasury Money Market Fund; 4.62% and 4.73% for the U.S. Government
Money Market Fund; and 3.24% and 3.29% for the Tax-Exempt Money Market Fund,
respectively. Reflects past performance; yields will vary. An investment in any
one of the Portico money market funds is neither insured nor guaranteed by the
U.S. Government nor is there any assurance the Funds will be able to maintain a
stable net asset value of $1.00 per share.
Current yield refers to income earned by a fund's investments over a 7-day
period. It is then annualized and stated as a percentage of the investment.
Effective yield is the same as current yield except that it assumes the income
earned by an investment in a fund will be reinvested.
<TABLE>
PORTICO MONEY MARKET FUNDS YIELD COMPARISONS<F2>
------------------------------------------------
AVERAGE
MONTHLY
RATES
<CAPTION> Donoghue's
Portico Money Fund
Donoghue's Donoghue's Portico Donoghue's Tax-Exempt AverageTM/
Donoghue's Portico Money Portico Money Tax- Money Money All Tax-Free
Portico Money Fund U.S. Treasury Fund U.S. Gov't Fund Exempt Fund Market Tax Tax
Money AverageTM/ Money AverageTM/ Money Average TM/ Money AverageTM/ Equivalent Equivalent
Market All Taxable Market U.S. Treasury Market Gov't. Market All Tax-Free Yield Yield<F3>
------- ----------- ------ ------------- ------ ------ ------ ------------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996
- ----
April 4.76% 4.75% 4.58% 4.52% 4.72% 4.58% 3.05% 2.97% 4.77% 4.64%
March 4.79% 4.76% 4.53% 4.50% 4.71% 4.60% 2.85% 2.79% 4.45% 4.36%
February 4.92% 4.83% 4.65% 4.61% 4.79% 4.64% 2.86% 2.85% 4.47% 4.45%
January 5.11% 5.05% 4.92% 4.75% 5.01% 4.85% 3.06% 2.97% 4.78% 4.64%
1995
- ----
December 5.20% 5.19% 4.90% 4.89% 5.10% 5.01% 3.57% 3.52% 5.58% 5.50%
November 5.22% 5.23% 4.93% 4.90% 4.90% 5.05% 3.35% 3.29% 5.23% 5.14%
October 5.21% 5.22% 4.89% 4.89% 4.90% 5.04% 3.32% 3.24% 5.19% 5.06%
September 5.25% 5.25% 4.97% 4.96% 5.12% 5.08% 3.35% 3.28% 5.23% 5.13%
August 5.31% 5.27% 5.04% 5.01% 5.23% 5.09% 3.30% 3.22% 5.16% 5.03%
July 5.42% 5.36% 5.22% 5.08% 5.31% 5.18% 3.19% 3.10% 4.98% 4.84%
June 5.53% 5.48% 5.29% 5.18% 5.42% 5.32% 3.41% 3.32% 5.33% 5.19%
May 5.58% 5.51% 5.32% 5.24% 5.50% 5.34% 3.83% 3.74% 5.98% 5.84%
We compare our Funds to the IBC/Donoghue's Money Fund Averages, which are composites of professionally managed money market
investment funds with similar objectives.
<FN>
<F2>After fee waivers. Had fees not been waived, performance would be reduced. Reflects past performance; yields will vary. An
investment in any one of the Portico money market funds is neither insured nor guaranteed by the U.S. Government nor is there any
assurance the Funds will be able to maintain a stable net asset value of $1.00 per share.
<F3>Assumes a 36% tax bracket.
</TABLE>
LOOKING AHEAD - THE FORECAST
Short-term money market rates have stabilized recently and the money market
interest rate curve is essentially flat. Currently, real, or inflation-adjusted,
short-term rates are high by historical standards. We expect short-term rates to
decline over the next six months and anticipate at least maintaining an average
maturity in the Portico money market funds comparable to their industry
benchmarks.
We continue to pride ourselves on having met three important objectives for our
money market shareowners: preservation of principal, liquidity and competitive
investment income. We believe these principles, combined with a disciplined
approach to quality, continue to be appropriate for our money market investors.
We appreciate your continued confidence in the Portico money market funds and
look forward to working with you in the future.
Jane T. Keelan
Carl J. Smith
Margaret Radske
Portfolio Managers
Firstar Investment Research & Management Company
STATEMENT OF ASSETS AND LIABILITIES
(Amounts in thousands, except per share data)
April 30, 1996
(Unaudited) U.S. U.S.
TREASURY GOVERNMENT TAX-EXEMPT
MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND
------------ ------------ ------------ ------------
ASSETS:
Investments, at
amortized cost $184,386 $63,910 $227,761 $87,497
Interest receivable 60 498 708 705
Other 14 5 7 5
-------- ------- -------- -------
Total Assets 184,460 64,413 228,476 88,207
-------- ------- -------- -------
LIABILITIES:
Dividends payable 744 258 822 221
Payable to affiliates 142 40 129 53
Accrued expenses and
other liabilities 31 21 29 29
-------- ------- -------- -------
Total Liabilities 917 319 980 303
-------- ------- -------- -------
NET ASSETS $183,543 $64,094 $227,496 $87,904
======== ======= ======== =======
CAPITAL STOCK,
$.0001 par value
Authorized 5,000,000 5,000,000 5,000,000 5,000,000
Issued and outstanding 183,543 64,094 227,496 87,904
-------- ------- -------- -------
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE
PER SHARE $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
See notes to the financial statements.
STATEMENT OF OPERATIONS
(Amounts in thousands)
Six Months Ended April 30, 1996
(Unaudited) U.S. U.S.
TREASURY GOVERNMENT TAX-EXEMPT
MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income $5,173 $1,799 $5,006 $1,546
------ ------ ------ ------
EXPENSES:
Investment advisory fees 461 169 458 207
Administration fees 111 41 110 50
Service organization fees 20 -- -- --
Custody fees 23 9 23 10
Shareowner servicing and
accounting costs 86 24 30 26
Professional fees 13 10 13 12
Reports to shareowners 25 5 6 5
Federal and state
registration fees 14 6 10 8
Directors' fees and expenses 3 4 3 2
Other 2 1 2 2
------ ------ ------ ------
Total expenses before waiver 758 269 655 322
Less: Waiver of expenses (204) (66) (106) (74)
------ ------ ------ ------
Net Expenses 554 203 549 248
------ ------ ------ ------
NET INVESTMENT INCOME $4,619 $1,596 $4,457 $1,298
====== ====== ====== ======
See notes to the financial statements.
STATEMENT OF CHANGES IN NET ASSETS
(Amounts in thousands) U.S. TREASURY
MONEY MARKET FUND MONEY MARKET FUND
-------------------- -------------------
Six months Year Six months Year
ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31,
1996 1995 1996 1995
--------- ---- --------- ----
(Unaudited) (Unaudited)
OPERATIONS:
Net investment income $ 4,619 $ 8,443 $1,596 $ 2,992
-------- -------- -------- --------
Increase in net assets
resulting from
operations 4,619 8,443 1,596 2,992
-------- -------- -------- --------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 264,693 601,835 111,069 205,921
Shares issued to
owners in reinvestment
of dividends 4,333 7,100 176 283
Shares redeemed (257,744) (601,692) (111,806) (197,569)
-------- -------- -------- --------
Net increase (decrease) 11,282 7,243 (561) 8,635
-------- -------- -------- --------
DIVIDENDS PAID FROM:
Net investment income (4,619) (8,443) (1,596) (2,992)
-------- -------- -------- --------
TOTAL INCREASE
(DECREASE) IN
NET ASSETS 11,282 7,243 (561) 8,635
NET ASSETS:
Beginning of period 172,261 165,018 64,655 56,020
-------- -------- -------- --------
End of year $183,543 $172,261 $ 64,094 $ 64,655
======== ======== ======== ========
STATEMENT OF CHANGES IN NET ASSETS (cont'd)
(Amounts in thousands) U.S. Government Tax-Exempt
MONEY MARKET FUND MONEY MARKET FUND
------------------- -------------------
Six months Year Six months Year
ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31,
1996 1995 1996 1995
--------- ----- --------- ------
(Unaudited) (Unaudited)
OPERATIONS:
Net investment income $ 4,457 $ 9,076 $1,298 $ 2,359
-------- -------- -------- --------
Increase in net assets
resulting from
operations 4,457 9,076 1,298 2,359
-------- -------- -------- --------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 457,919 875,356 88,195 182,982
Shares issued to
owners in reinvestment
of dividends 1,331 2,649 519 884
Shares redeemed (394,822) (898,528) (84,894) (170,218)
-------- -------- -------- --------
Net increase (decrease) 64,428 (20,523) 3,820 13,648
-------- -------- -------- --------
DIVIDENDS PAID FROM:
Net investment income (4,457) (9,076) (1,298) (2,359)
-------- -------- -------- --------
TOTAL INCREASE
(DECREASE) IN
NET ASSETS 64,428 (20,523) 3,820 13,648
NET ASSETS:
Beginning of period 163,068 183,591 84,084 70,436
-------- -------- -------- --------
End of period $227,496 $163,068 $ 87,904 $ 84,084
======== ======== ======== ========
See notes to the financial statements.
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND
-----------------
Six months
ended Year ended October 31,
April 30, --------------------------------------------
1996 1995 1994 1993 1992<F5> 1991
----------- ---- ---- ---- ---- ----
(Unaudited)
Per Share Data:
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment
income <F6> 0.02 0.05 0.03 0.03 0.04 0.06
------- ------- ------- ------- ------- -------
Total from investment
operations 0.02 0.05 0.03 0.03 0.04 0.06
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net
investment income (0.02) (0.05) (0.03) (0.03) (0.04) (0.06)
------- ------- ------- ------- ------- -------
Total distributions (0.02) (0.05) (0.03) (0.03) (0.04) (0.06)
------- ------- ------- ------- ------- -------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
Total Return <F7> 2.52% 5.51% 3.42% 2.71% 3.73% 6.39%
Supplemental data and ratios:
Net assets, in
thousands,
end of period $183,543 $172,261 $165,018 $132,568 $146,012 $628,697
Ratio of net
expenses to
average net
assets <F8> 0.60% 0.60% 0.60% 0.60% 0.58% 0.50%
Ratio of net
investment
income to average
net assets <F8> 5.01% 5.36% 3.44% 2.67% 3.84% 6.28%
FINANCIAL HIGHLIGHTS (cont'd)
U.S. TREASURY
MONEY MARKET FUND
-----------------
April 29,
Six months 1991<F4>
ended Year ended October 31, through
April 30, --------------------------------- Oct. 31,
1996 1995 1994 1993 1992<F5> 1991
(Unaudited)
----------- ---- ---- ---- ---- ----
Per Share Data:
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment
income <F6> 0.02 0.05 0.03 0.03 0.04 0.03
------- ------- ------- ------- ------- -------
Total from investment
operations 0.02 0.05 0.03 0.03 0.04 0.03
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net
investment income (0.02) (0.05) (0.03) (0.03) (0.04) (0.03)
------- ------- ------- ------- ------- -------
Total distributions (0.02) (0.05) (0.03) (0.03) (0.04) (0.03)
------- ------- ------- ------- ------- -------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
Total Return <F7> 2.39% 5.16% 3.20% 2.59% 3.48% 2.69%
Supplemental data and ratios:
Net assets, in
thousands,
end of period $64,094 $64,655 $56,020 $40,744 $37,342 $36,267
Ratio of net expenses
to average
net assets <F8> 0.60% 0.60% 0.60% 0.60% 0.60% 0.52%
Ratio of net
investment
income to average
net assets <F8> 4.73% 5.04% 3.14% 2.55% 3.42% 5.53%
FINANCIAL HIGHLIGHTS (cont'd)
U.S. GOVERNMENT
MONEY MARKET FUND
------------------
Six months
ended Year ended October 31,
April 30, --------------------------------------------
1996 1995 1994 1993 1992<F5> 1991
----------- ---- ---- ---- ---- ----
(Unaudited)
Per Share Data:
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment
income <F6> 0.02 0.05 0.03 0.03 0.04 0.06
------- ------- ------- ------- ------- -------
Total from investment
operations 0.02 0.05 0.03 0.03 0.04 0.06
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net
investment income (0.02) (0.05) (0.03) (0.03) (0.04) (0.06)
------- ------- ------- ------- ------- -------
Total distributions (0.02) (0.05) (0.03) (0.03) (0.04) (0.06)
------- ------- ------- ------- ------- -------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
Total Return <F7> 2.45% 5.37% 3.35% 2.63% 3.60% 6.02%
Supplemental data and ratios:
Net assets, in
thousands,
end of period $227,496 $163,068 $183,591 $203,165 $221,521 $237,752
Ratio of net
expenses to
average net
assets <F8> 0.60% 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net
investment income
to average
net assets <F8> 4.87% 5.24% 3.29% 2.59% 3.56% 5.80%
FINANCIAL HIGHLIGHTS (cont'd)
TAX-EXEMPT
MONEY MARKET FUND
------------------
Six months
ended Year ended October 31,
April 30, --------------------------------------------
1996 1995 1994 1993 1992<F5> 1991
----------- ---- ---- ---- ---- ----
(Unaudited)
Per Share Data:
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment
income <F6> 0.02 0.03 0.02 0.02 0.03 0.04
------- ------- ------- ------- ------- -------
Total from investment
operations 0.02 0.03 0.02 0.02 0.03 0.04
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net
investment income (0.02) (0.03) (0.02) (0.02) (0.03) (0.04)
------- ------- ------- ------- ------- -------
Total distributions (0.02) (0.03) (0.02) (0.02) (0.03) (0.04)
------- ------- ------- ------- ------- -------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
Total Return <F7> 1.57% 3.42% 2.25% 2.17% 2.91% 4.49%
Supplemental data and ratios:
Net assets, in
thousands,
end of period $87,904 $84,084 $70,436 $73,621 $74,343 $29,714
Ratio of net
expenses to
average net
assets <F8> 0.60% 0.60% 0.60% 0.60% 0.60% 0.63%
Ratio of net
investment
income to average
net assets <F8> 3.14% 3.36% 2.23% 2.12% 2.83% 4.34%
<F4> Commencement of operations.
<F5> Effective February 3, 1992, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F6> For the Tax-Exempt Money Market Fund, substantially all investment income
is exempt from Federal income tax.
<F7> Not annualized for the period ended October 31, 1991, for the U.S. Treasury
Money Market Fund and for the period ended April 30, 1996, for all Funds.
<F8> Annualized for the period ended October 31, 1991, for the U.S. Treasury
Money Market Fund and for the period ended April 30, 1996, for all Funds.
See notes to the financial statements.
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- -------------
COMMERCIAL PAPER - 93.3%
Agricultural Products - 4.3%
Golden Peanut Company,
$4,000 5.05%, 5/22/96 $ 3,988
4,000 5.28%, 6/24/96 3,969
-------
7,957
-------
Asset Backed Security - 4.3%
New Center Asset Trust,
4,000 5.25%, 7/09/96 3,960
4,000 5.27%, 8/01/96 3,946
-------
7,906
-------
Autos & Trucks - 4.3%
Ford Credit Europe PLC,
4,000 5.24%, 5/06/96 3,997
4,000 5.29%, 7/24/96 3,951
-------
7,948
-------
Basic Industry - 2.7%
U.S. Borax & Chemical Corporation,
5,000 5.04%, 5/31/96 4,979
-------
Beverages - 4.4%
Bass Finance (C.I.) Ltd.,
4,000 5.10%, 5/03/96 3,999
4,000 5.05%, 5/20/96 3,989
-------
7,988
-------
Chemicals - 2.2%
Air Products & Chemicals, Inc.,
4,000 5.42%, 5/17/96 3,990
-------
Conglomerates - 4.3%
Mitsubishi International Corporation,
3,990 5.30%, 6/10/96 3,967
Philip Morris Companies, Inc.,
4,000 5.33%, 6/04/96 3,980
-------
7,947
-------
Consumer Staples - 6.5%
Walt Disney Company,
4,000 5.20%, 7/15/96 3,957
4,000 5.20%, 7/16/96 3,956
Hitachi America, Ltd.,
4,000 5.35%, 7/10/96 3,958
-------
11,871
-------
Drugs - 4.3%
Colgate-Palmolive Company,
4,000 5.26%, 7/12/96 3,958
Lilly (Eli) & Co.,
4,000 5.33%, 8/13/96 3,938
-------
7,896
-------
Energy - 4.4%
Arco Coal Australia, Inc.,
4,000 5.07%, 5/30/96 3,984
4,000 5.25%, 6/13/96 3,975
-------
7,959
-------
Finance - Miscellaneous - 13.0%
Beneficial Corporation,
4,000 5.23%, 6/07/96 3,979
General Electric Capital Corporation,
4,000 5.01%, 7/26/96 3,952
Hanson Finance (U.K.) PLC,
4,000 5.13%, 5/29/96 3,984
4,000 5.38%, 7/25/96 3,949
Swedish Export Credit Corporation,
4,000 5.18%, 5/28/96 3,985
Transamerica Finance Corporation,
4,000 5.06%, 6/14/96 3,975
-------
23,824
-------
Finance - Services - 10.8%
Goldman Sachs Group, L.P.,
4,000 5.50%, 5/07/96 3,996
4,000 5.30%, 5/14/96 3,992
Merrill Lynch & Co., Inc.,
4,000 5.25%, 6/28/96 3,966
4,000 5.02%, 7/31/96 3,949
Morgan Stanley Group, Inc.,
4,000 5.30%, 7/02/96 3,963
-------
19,866
-------
Insurance - 4.3%
American Family Financial Services, Inc.,
4,000 5.29% 6/06/96 3,979
ITT Hartford Group, Inc.,
4,000 5.27%, 6/19/96 3,971
-------
7,950
-------
Miscellaneous - 4.3%
International Lease Finance Corporation,
4,000 5.25%, 6/20/96 3,971
4,000 5.32%, 6/27/96 3,966
-------
7,937
-------
Printing & Publishing - 4.3%
McGraw-Hill, Inc.
4,000 5.00%, 6/21/96 3,972
4,000 5.34%, 7/30/96 3,947
-------
7,919
-------
Sovereign - 6.5%
Quebec Province of Canada,
4,000 5.28%, 10/22/96 3,898
Kingdom of Sweden,
4,000 5.28%, 5/10/96 3,995
Wool International,
4,000 5.15%, 5/09/96 3,995
-------
11,888
-------
Utilities - Communication - 4.4%
AT&T Capital Corporation,
4,000 5.07%, 5/01/1996 4,000
4,000 5.05%, 5/16/1996 3,992
-------
7,992
-------
Utilities - Gas - 4.0%
British Gas Capital, Inc.,
4,000 5.12%, 5/24/96 3,987
Southern California Gas Co.,
3,330 5.35%, 7/11/96 3,295
-------
7,282
-------
Total Commercial Paper 171,099
-------
VARIABLE RATE DEMAND NOTES - 3.8%
7,000 WPL Holdings Demand Note 7,000
-------
Total Variable Rate Demand Notes 7,000
-------
Number Amortized
of Shares Cost
(in thousands) (in thousands)
------------- -------------
INVESTMENT COMPANIES - 3.4%
10 Financial Square Prime Obligation Fund 10
6,277 Short-Term Investments Co.
Liquid Assets Portfolio 6,277
-------
Total Investment Companies 6,287
-------
Total Investments 100.5% 184,386
-------
Liabilities, less Other Assets (0.5)% (843)
-------
NET ASSETS 100.0% $183,543
========
See notes to the financial statements.
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- -------------
U.S. TREASURIES - 91.3%
U.S. Treasury Notes - 50.1%
$ 2,500 7.38%, 5/15/96 $ 2,502
4,500 5.88%, 5/31/96 4,502
9,000 7.88%, 7/31/96 9,059
4,000 4.38%, 8/15/96 3,990
8,000 6.50%, 9/30/96 8,039
2,500 8.00%, 10/15/96 2,529
1,500 6.88%, 2/28/97 1,517
-------
32,138
-------
U.S. Treasury Bills - 41.2%
6,000 5.05%, 5/02/96 5,999
11,500 5.24%, 5/09/96 11,487
5,000 4.95%, 6/20/96 4,966
4,000 4.94%, 6/27/96 3,969
-------
26,421
-------
Total U.S. Treasuries 58,559
-------
Number
of Shares
(in thousands)
- --------------
INVESTMENT COMPANIES - 8.4%
3,045 Institutional Liquid Assets
Treasury Instruments Portfolio 3,045
2,307 Short-Term Investments Co.
Treasury Tax Advantage Portfolio 2,306
-------
Total Investment Companies 5,351
-------
Total Investments 99.7% 63,910
-------
Other Assets, less Liabilities 0.3% 184
-------
NET ASSETS 100.0% $64,094
=======
See notes to the financial statements.
U.S. GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- -------------
U.S. GOVERNMENT AGENCIES - 86.1%
Federal Farm Credit Bank - 14.2%
Federal Farm Credit Bank Discount Notes:
$5,000 4.97%, 5/01/96 $ 5,000
5,000 5.20%, 5/07/96 4,996
6,000 4.98%, 5/28/96 5,977
4,500 5.17%, 6/07/96 4,476
3,000 5.17%, 7/01/96 2,974
4,000 5.18%, 7/15/96 3,957
5,000 5.18%, 7/24/96 4,939
-------
32,319
-------
Federal Home Loan Bank - 2.2%
Federal Home Loan Bank Discount Note,
5,000 4.99%, 7/10/96 4,952
-------
Federal Home Loan Mortgage Corporation - 19.6%
Federal Home Loan Mortgage Corporation Discount Notes:
4,000 5.00%, 5/02/96 4,000
5,000 4.98%, 5/16/96 4,990
4,000 5.23%, 5/30/96 3,983
4,500 5.22%, 6/17/96 4,469
3,835 5.21%, 6/27/96 3,803
5,000 5.18%, 6/28/96 4,958
3,500 5.20%, 7/03/96 3,468
5,000 5.19%, 7/11/96 4,949
5,000 5.18%, 7/17/96 4,945
5,000 5.18%, 7/18/96 4,944
-------
44,509
-------
Federal National Mortgage Assn. - 21.4%
Federal National Mortgage Assn. Discount Notes:
4,000 5.18%, 5/07/96 3,997
6,000 4.98%, 5/09/96 5,993
5,000 5.21%, 5/10/96 4,993
6,000 4.99%, 5/29/96 5,977
4,000 5.17%, 6/04/96 3,981
4,000 5.15%, 6/06/96 3,979
5,000 5.24%, 6/11/96 4,970
5,000 5.12%, 6/12/96 4,970
5,000 5.19%, 6/25/96 4,960
5,000 5.18%, 10/10/96 4,884
-------
48,704
-------
Other - 13.6%
Tennessee Valley Authority Discount Notes:
11,000 5.11%, 5/03/96 10,997
6,000 5.14%, 5/06/96 5,996
5,000 5.18%, 5/21/96 4,985
4,000 5.21%, 5/23/96 3,987
5,000 5.18%, 6/05/96 4,975
-------
30,940
-------
Student Loan Marketing Assn. - 12.0%
Student Loan Marketing Assn. Floating Rate Notes:
5,000 5.28%, 7/19/96<F9> 5,000
13,500 5.34%, 12/20/96<F9> 13,497
3,810 5.48%, 10/30/97<F9> 3,813
5,000 5.48%, 11/20/97<F9> 5,003
-------
27,313
-------
Government Bond - 3.1%
Government Trust Certificates, Class 2-D:
4,975 9.25%, 5/15/96 4,980
2,138 9.25%, 11/15/96 2,154
-------
7,134
-------
Total U.S. Government Agencies 195,871
-------
U.S. TREASURIES - 7.1%
U.S. Treasury Notes:
4,000 7.88%, 7/31/96 4,024
6,000 7.00%, 9/30/96 6,041
6,000 6.50%, 9/30/96 6,028
-------
Total U.S. Treasuries 16,093
-------
REPURCHASE AGREEMENT - 3.9%
Repurchase Agreement with Morgan Stanley & Co.,
5.29%, due 5/01/96, collateralized by U.S. Treasury
9,000 Notes valued at $9,001, 6.38%, due 7/15/99 9,000
-------
Number
of Shares
(in thousands)
- --------------
INVESTMENT COMPANIES - 3.0%
6,786 Financial Square Government Obligation Fund 6,786
10 Short-Term Investments Co. Treasury Portfolio 10
-------
Total Investment Companies 6,796
-------
Total Investments 100.1% 227,760
-------
Liabilities, less Other Assets (0.1)% (264)
-------
NET ASSETS 100.0% $227,496
========
<F9>Stated maturity with weekly interest rate reset
See notes to the financial statements.
TAX-EXEMPT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- -------------
GENERAL OBLIGATION - 3.2%
Connecticut State Services,
$ 900 4.50%, 3/15/97 $ 906
Fox Valley, Wisconsin, VTAE District,
490 5.20%, 6/01/96 490
Janesville, Wisconsin, P/N Services,
1,000 5.00%, 10/01/96 1,006
Northwestern Mutual Life,
450 4.50%, 2/15/09<F10><F11> 450
-------
Total General Obligation 2,852
-------
NOTES AND BONDS - 9.1%
Industrial Development/Pollution
Control Revenue - 2.3%
Illinois Development Finance Authority,
2,000 Enterprise Office, 3.60%, 12/01/17<F10><F11> 2,000
-------
Miscellaneous - 2.3%
Illinois State Revenue Anticipation Certificates,
2,000 4.50%, 5/10/96 2,000
-------
Transportation Revenue - 0.6%
Maryland State Department of Transportation and
500 Construction, 5.70%, 9/01/96 503
-------
University Revenue - 3.9%
Cook County, Illinois, Community College District,
3,390 7.70%, 1/01/97 3,477
-------
Total Notes and Bonds 7,980
-------
PREREFUNDED AND ESCROWED
TO MATURITY - 12.7%
Arizona State Transportation Board, Maricopa County,
1,000 7.60%, 7/01/01, Prerefunded 7/01/96 1,027
District Of Columbia - Series A,
1,000 7.88%, 6/01/06, Prerefunded 6/01/96 1,023
Interstate South Metropolitan District, Colorado,
1,000 9.50%, 12/01/06, Prerefunded 12/01/96 1,042
Kentucky State Turnpike Authority,
325 7.70%, 1/01/00, Prerefunded 7/01/96 334
Laporte County, Indiana, Hospital Authority,
1,500 8.75%, 3/01/12, Prerefunded 3/01/97 1,593
Maine Municipal Bond Bank,
665 6.30%, 11/01/99, Prerefunded 11/01/96 679
Muskingum County, Ohio, Certificates -
Office Building Project, 9.20%, 6/01/10,
2,120 Prerefunded 6/01/96 2,171
Nueces County, Texas, Hospital Revenue District,
2,000 9.00%, 7/01/16, Prerefunded 7/01/96 2,067
Oregon State Municipal Bond,
1,200 12.50%, 9/01/03, Prerefunded 9/01/96 1,260
-------
Total Prerefunded and Escrowed to Maturity 11,196
-------
REVENUE BONDS - 67.7%
Electric Revenue - 5.8%
County of Mason, Kentucky, Series 1984B,
2,100 4.14%, 10/15/14<F10> 2,100
Putnam County, Florida Department Authority -
2,985 Seminole Electric, 4.14%, 3/15/14<F10> 2,985
-------
5,085
-------
Hospital Revenue - 16.7%
Illinois Health Facilities Authority - Ingalls Hospital,
1,720 4.19%, 1/01/16<F10> 1,720
Indiana Health,
3,100 4.19%, 12/01/02<F10> 3,100
Jefferson Parish, Louisiana, Hospital,
2,600 4.09%, 12/01/15<F10> 2,600
Louisiana PFA Hospital Equipment,
1,300 4.59%, 12/01/05<F10> 1,300
West Virginia State Hospital Finance Authority -
500 St. Joseph's Hospital Project, 4.24%, 10/01/10<F10> 500
Wisconsin State Health & Educational Facilities -
2,000 Blood Center, 4.09%, 6/01/19<F10> 2,000
Wisconsin State Health & Educational Facilities -
3,500 Marshfield Clinic, 4.04%, 6/01/10<F10> 3,500
-------
14,720
-------
Housing Revenue - 14.8%
Broward County, Florida, Housing Finance Authority -
2,000 Quiet Creek Apartments, 4.34%, 12/01/29<F10> 2,000
Dade County, Florida, Housing Finance Authority,
1,600 4.34%, 8/01/05<F10> 1,600
Dade County, Florida, Housing Finance Authority -
1,800 Nob Hill Project Series 1, 4.34%, 12/01/29<F10> 1,800
Illinois Development Finance Authority -
1,625 St. Paul's House, 4.09%, 2/01/25<F10> 1,625
Industrial Development Authority of St Louis,
2,990 4.34%, 2/01/07<F10> 2,990
Orland Hills, Illinois, Multi-Family,
2,470 4.09%, 12/01/04<F10> 2,470
Washington State Housing Finance - Community
555 Multifamily Mortgage, 4.24%, 10/01/20<F10> 555
-------
13,040
-------
Industrial Development/Pollution
Control Revenue - 9.7%
Moffat County, Colorado, Pollution Control,
1,800 4.14%, 7/01/10<F10> 1,800
Oakbrook Terrace, Illinois - Oakbrook Terrace
4,100 Atrium, 3.74%, 12/01/25<F10> 4,100
Oklahoma County, Oklahoma Finance Authority -
2,600 Perrine Office Project, 4.09%, 12/01/14<F10> 2,600
-------
8,500
-------
Miscellaneous - 7.8%
Glendale, California, Reliance Development
1,000 Public Parking, 3.69%, 12/01/14<F10> 1,000
Illinois Educational Chicago Zoological,
2,000 4.14%, 12/15/25<F10> 2,000
Indianapolis, Indiana, Economic Development -
3,895 Jewish Federation Campus, 4.19%, 4/01/05<F10> 3,895
-------
6,895
-------
Pooled Government Authority Revenue - 2.3%
Indiana Hospital Equipment Finance Authority,
2,000 Series A, 4.19%, 12/01/15<F10> 2,000
-------
University Revenue - 10.6%
Illinois Development Finance Authority - Aurora -
2,500 Central Catholic High School, 4.09%, 4/01/24<F10> 2,500
Illinois Development Finance Authority -
2,000 Lake Forest Academy, 4.09%, 12/01/24<F10> 2,000
Illinois Development Finance Authority -
3,000 St. Ignatius College Prep, 4.09%, 6/01/24<F10> 3,000
University of Iowa, Facilities Corporation,
1,775 4.39%, 6/01/05<F10> 1,775
-------
9,275
-------
Total Revenue Bonds 59,515
-------
INVESTMENT COMPANIES - 6.8%
3,244 Financial Square Tax-Exempt Money Market Fund 3,244
2,710 Tax Free Investment Trusts 2,710
-------
Total Investment Companies 5,954
-------
Total Investments 99.5% 87,497
-------
Other Assets, less Liabilities 0.5% 407
-------
NET ASSETS 100.0% $87,904
=======
<F10> Variable rate security
<F11> Stated maturity with option to put
See notes to the financial statements.
MONEY MARKET FUND
U.S. TREASURY MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
TAX-EXEMPT MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS
(Unaudited)
1.ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988, as
a Wisconsin Corporation and is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended. The Money Market,
U.S. Treasury Money Market (formerly the U.S. Federal Money Market Fund), U.S.
Government Money Market and Tax-Exempt Money Market Funds (the "Funds") are
separate, diversified investment portfolios of the Company. The Money Market,
U.S. Treasury Money Market, U.S. Government Money Market and Tax-Exempt Money
Market Funds commenced operations on March 16, 1988, April 29, 1991, August 1,
1988 and June 27, 1988, respectively.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - The securities are valued on the basis of amortized
cost for financial reporting purposes and federal income tax purposes, which
approximates market value. Variable rate demand notes are valued at cost which
approximates market value.
b) Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied with the provisions of the Internal Revenue Code
available to regulated investment companies and intend to continue to so comply
in future years.
c) 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.
d) Expenses - The Funds are charged for those expenses that are directly
attributable to each portfolio such as advisory, administration, service
organization fees and certain shareowner service fees. Expenses that are not
directly attributable to a portfolio are typically allocated among the Company's
portfolios in proportion to their respective net assets, number of shareowner
accounts or net sales, where applicable.
e) Distributions to Shareowners - Dividends from net investment income are
declared daily and paid monthly. Distributions of net realized capital gains, if
any, will be declared at least annually.
f) Other - The Funds recognize interest income on the accrual basis. For
securities with put provisions, discounts and premiums are amortized to the
earlier of the put date or maturity. For the remainder of securities, discounts
and premiums are amortized over the life of the respective securities.
Investment and shareowner transactions are recorded no later than the first
business day after the trade date. Realized gains and losses from investment
transactions are reported on an identified cost basis which is the same basis
the Funds use for federal income tax purposes. The U.S. Government Money Market
Fund has investments in floating rate government agency notes. The notes have
weekly interest rate reset provisions which are tied to the 90-day Treasury bill
rate. The Fund values the securities at amortized cost, which approximates
market. Transactions in capital shares at $1.00 per share are shown in the
Statement of Changes in Net Assets. Generally accepted accounting principles
require that permanent financial reporting and tax differences be reclassified
to capital stock.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual rate of 0.50% on the first
$2 billion of each Fund's average daily net assets, and 0.40% of each Fund's
average daily net assets in excess of $2 billion. For the six months ended April
30, 1996, FIRMCO voluntarily waived $136, $41, $39 and $44 of its advisory fees,
in thousands, for the Money Market, U.S. Treasury Money Market, U.S. Government
Money Market and Tax-Exempt Money Market Funds, respectively.
Firstar Trust Company, an affiliate of FIRMCO, serves as custodian, transfer
agent and accounting services agent for the Funds.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, computed daily and
payable monthly, at the annual rate of 0.125% of the Company's first $2 billion
of average aggregate daily net assets plus 0.10% of the Company's average
aggregate daily net assets in excess of $2 billion. For the six months ended
April 30, 1996, $68, $25, $67 and $30 of administration fees, in thousands, were
voluntarily waived for the Money Market, U.S. Treasury Money Market, U.S.
Government Money Market and Tax-Exempt Money Market Funds, respectively.
The Funds have adopted a Service and Distribution Plan pursuant to Rule 12b-1
of the Investment Company Act of 1940 and made payments, in thousands, for the
Money Market Fund of $17, for the six months ended April 30, 1996. No payments
for the U.S. Government Money Market, U.S. Treasury Money Market or Tax-Exempt
Money Market Funds were made during the six months ended April 30, 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.
- - PORTICO FUNDS ARE AVAILABLE THROUGH:
- the Portico Funds Center,
- Investment Specialists who are registered representatives of Elan Investment
Services, Inc., a registered broker/dealer, NASD and SIPC member,
- and through selected shareholder organizations.
This report is authorized for distribution only when preceded or accompanied by
a current prospectus.
TO OPEN AN ACCOUNT OR REQUEST INFORMATION
1-800-982-8909
1-414-287-3710
FOR ACCOUNT BALANCES AND INVESTOR SERVICES
1-800-228-1024
1-414-287-3808
PORTICO FUNDS CENTER
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
NASD Ref # X96-0520-021
- -------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
April 30, 1996
PORTICO FUNDS
INSTITUTIONAL
MONEY MARKET FUND
NOTICE TO INVESTORS
- - Shares of Portico Funds:
- ARE NOT INSURED BY THE FDIC, the US Government or any other governmental
agency;
- are not bank deposits or obligations of or guaranteed by Firstar Bank, its
parent company or its affiliates;
- are subject to investment risks, including possible loss of principal; and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and an
independent third-party distributor.
- - Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
- - There can be no assurance that the money market fund will be able to maintain
a stable net asset value of $1.00 per share.
TABLE OF CONTENTS
Page(s)
SHAREOWNER LETTER....................................................1
PORTICO INSTITUTIONAL MONEY MARKET FUND YIELD COMPARISONS............2
LOOKING AHEAD - THE FORECAST.........................................2
STATEMENT OF ASSETS AND LIABILITIES..................................3
STATEMENT OF OPERATIONS..............................................4
STATEMENT OF CHANGES IN NET ASSETS...................................4
FINANCIAL HIGHLIGHTS.................................................5
SCHEDULE OF INVESTMENTS.............................................6-7
NOTES TO FINANCIAL STATEMENTS........................................8
May 1996
DEAR SHAREOWNER:
INVESTMENT REVIEW
The Federal Reserve Board lowered short-term interest rates in December 1995 and
again in January 1996 a total of 50 basis points. Money market rates reflected
those drops but have risen slightly over the last two months in reaction to
indications of stronger economic growth and concerns over potential inflationary
pressures. Additionally, strong corporate earnings have helped in maintaining
the high credit quality of our funds.
Portico Institutional Money Market Fund is managed with quality and safety of
principal as our primary goals. All securities purchased by the Fund must meet
strict guidelines set by the SEC for presenting minimal credit risk, as well as
our own high internal standards. Our credit research team closely monitors all
investments to ensure quality standards are met.
7-DAY YIELD<F12>
--------------
PERIOD ENDED APRIL 30, 1996 CURRENT EFFECTIVE
INSTITUTIONAL MONEY MARKET FUND 4.99% 5.12%
<F12> After fee waivers. Had fees not been waived, the current and effective
yields would have been 4.68% and 4.81%, respectively. Reflects past performance;
yields will vary. An investment in Portico Institutional Money Market Fund is
neither insured nor guaranteed by the U.S. Government nor is there any assurance
the Fund will be able to maintain a stable net asset value of $1.00 per share.
Current yield refers to income earned by a fund's investments over a 7-day
period. It is then annualized and stated as a percentage of the investment.
Effective yield is the same as current yield except that it assumes the income
earned by an investment in a fund will be reinvested.
YIELD COMPARISONS<F13>
AVERAGE
MONTHLY
RATES
PORTICO INSTITUTIONAL DONOGHUE'S INSTITUTIONAL
MONEY MARKET FUND AVERAGETM / ALL TAXABLE
----------------- -----------------------
1996
- ----
April 4.98% 4.95%
March 5.02% 4.97%
February 5.15% 5.01%
January 5.36% 5.24%
1995
- ----
December 5.46% 5.39%
November 5.48% 5.43%
October 5.48% 5.42%
September 5.51% 5.44%
August 5.57% 5.47%
July 5.68% 5.56%
June 5.79% 5.68%
May 5.84% 5.71%
We compare the Portico Institutional Money Market Fund to the IBC/Donoghue's
Institutional AverageTM/All Taxable, which is a composite of professionally
managed money market investment funds with similar objectives.
<F13> After fee waivers. Had fees not been waived, performance would have been
reduced. Reflects past performance; yields will vary. An investment in Portico
Institutional Money Market Fund is neither insured nor guaranteed by the U.S.
Government nor is there any assurance the Fund will be able to maintain a stable
net asset value of $1.00 per share.
LOOKING AHEAD - THE FORECAST
Short-term money market rates have stabilized recently and the money market
interest rate curve is essentially flat. Currently, real, or inflation-adjusted,
short-term rates are high by historical standards. We expect short-term rates to
decline over the next six months and anticipate at least maintaining an average
maturity in Portico Institutional Money Market Fund comparable to the industry
benchmark.
We continue to pride ourselves on having met three important objectives for our
money market shareowners: PRESERVATION OF PRINCIPAL, LIQUIDITY and COMPETITIVE
INVESTMENT INCOME. We believe these principles, combined with a disciplined
approach to quality, continue to be appropriate for our money market investors.
We appreciate your continued confidence in Portico Institutional Money Market
Fund and look forward to working with you in the future.
Jane T. Keelan
Carl J. Smith
Margaret Radske
Portfolio Managers
Firstar Investment Research & Management Company
INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
APRIL 30, 1996
(UNAUDITED)
ASSETS:
Investments, at amortized cost $776,673
Interest receivable 177
Other 2
--------
Total Assets 776,852
--------
LIABILITIES:
Dividends payable 3,174
Payable to affiliates 294
Accrued expenses 41
--------
Total Liabilities 3,509
--------
NET ASSETS $773,343
========
CAPITAL STOCK, $.0001 par value
Authorized 5,000,000
Issued and outstanding 773,343
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $1.00
=====
See notes to the financial statements.
INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
SIX MONTHS ENDED APRIL 30, 1996
(UNAUDITED)
INVESTMENT INCOME:
Interest income $ 21,317
--------
EXPENSES:
Investment advisory fees 1,903
Administration fees 457
Custody fees 77
Federal and state registration fees 6
Shareowner servicing and accounting costs 32
Professional fees 13
Reports to shareowners 6
Amortization of organization costs 1
Directors' fees and expenses 3
Other 4
--------
Total expenses before waiver 2,502
Less: Waiver of expenses (1,170)
--------
Net Expenses 1,332
--------
NET INVESTMENT INCOME $ 19,985
========
See notes to the financial statements.
INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
Six months Year
ended ended
April 30, 1996 Oct. 31,1995
-------------- ------------
(Unaudited)
OPERATIONS:
Net investment income $ 19,985 $ 39,970
---------- ----------
Increase in net assets resulting
from operations 19,985 39,970
---------- ----------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 1,242,669 2,916,794
Shares issued to owners in
reinvestment of dividends 3,624 4,010
Shares redeemed (1,189,516) (2,958,874)
---------- ----------
Net increase (decrease) 56,777 (38,070)
---------- ----------
DIVIDENDS PAID FROM:
Net investment income (19,985) (39,970)
---------- ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 56,777 (38,070)
NET ASSETS:
Beginning of period 716,566 754,636
---------- ----------
End of period $ 773,343 $ 716,566
========= =========
See notes to the financial statements.
<TABLE>
INSTITUTIONAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
Six months Year ended October 31, April 26, 1991<F14>
ended --------------------------------------- through
April 30, 1996 1995 1994 1993 1992<F15> October 31, 1991
-------------- ---- ---- ---- ---- ----------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income 0.03 0.06 0.04 0.03 0.04 0.03
-------- -------- -------- -------- -------- --------
Total from investment operations 0.03 0.06 0.04 0.03 0.04 0.03
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.03) (0.06) (0.04) (0.03) (0.04) (0.03)
-------- -------- -------- -------- -------- --------
Total distributions (0.03) (0.06) (0.04) (0.03) (0.04) (0.03)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======== ======= ======== ======== ======== ========
Total Return<F16> 2.64% 5.77% 3.65% 2.92% 3.88% 2.87%
Supplemental data and ratios:
Net assets, in thousands, end of period $773,343 $716,566 $754,636 $588,301 $696,132 $189,048
Ratio of net expenses to average
net assets <F17> 0.35% 0.35% 0.37% 0.38% 0.41% 0.50%
Ratio of net investment income
to average net assets <F17> 5.25% 5.63% 3.64% 2.87% 3.75% 5.47%
See notes to the financial statements.
<FN>
<F14> Commencement of operations.
<F15> Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F16> Not annualized for the period ended October 31, 1991 and April 30, 1996.
<F17> Annualized for the period ended October 31, 1991 and April 30, 1996.
</TABLE>
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- --------------
COMMERCIAL PAPER - 94.5%
Asset Backed - 7.7%
Ciesco L.P.,
$15,000 5.27%, 6/11/96 $14,910
15,000 5.23%, 6/12/96 14,908
New Center Asset Trust,
15,000 5.35%, 7/25/96 14,811
15,000 5.34%, 7/31/96 14,798
-------
59,427
-------
AUTOS & TRUCKS - 3.9%
Ford Credit Europe PLC,
15,000 5.05%, 5/20/96 14,960
Ford Motor Credit Company,
15,000 5.23%, 5/03/96 14,996
-------
29,956
-------
BANKING - FOREIGN - 3.2%
Dresdner US Financial,
10,000 5.06%, 5/10/96 9,987
15,000 5.25%, 5/31/96 14,934
-------
24,921
-------
BASIC INDUSTRY - 1.0%
U.S. Borax & Chemical Corporation,
8,000 5.06%, 5/17/96 7,982
-------
BEVERAGES - 2.9%
Bass Finance (C.I.) Ltd.,
15,000 5.10%, 5/06/96 14,989
Brown-Forman Corporation,
7,677 5.10%, 5/07/96 7,670
-------
22,659
-------
CONGLOMERATES - 4.4%
Mitsubishi International Corporation,
11,000 5.08%, 5/15/96 10,978
10,000 5.28%, 6/17/96 9,931
13,000 5.30%, 7/15/96 12,856
-------
33,765
-------
CONSUMER STAPLES - 9.4%
Ciba-Geigy Corporation,
15,000 5.30%, 6/10/96 14,912
Walt Disney Company,
15,000 5.20%, 7/16/96 14,835
Hitachi America, Ltd.,
15,000 5.30%, 6/28/96 14,872
6,000 5.35%, 7/10/96 5,937
CONSUMER STAPLES - 9.4% (CONT.)
Knight-Ridder, Inc.,
$15,000 5.07%, 6/13/96 $ 14,909
7,500 5.27%, 7/12/96 7,421
-------
72,886
-------
DRUGS - 1.9%
Lilly (Eli) & Co.,
15,000 5.33%, 8/13/96 14,769
-------
ENERGY - 4.0%
Arco Coal Australia, Inc.,
12,000 5.08%, 5/08/96 11,988
6,000 5.25%, 6/13/96 5,962
13,000 5.34%, 7/11/96 12,863
-------
30,813
-------
FINANCE - 18.0%
American Express Company,
13,000 5.37%, 6/03/96 12,936
13,000 5.04%, 6/20/96 12,909
Beneficial Corporation,
15,000 5.23%, 6/06/96 14,922
General Electric Capital Corporation,
15,000 5.18%, 7/10/96 14,849
Hanson Finance (U.K.) PLC,
9,000 5.17%, 5/13/96 8,985
15,000 5.13%, 5/28/96 14,942
15,000 5.38%, 7/24/96 14,812
Household Finance Corporation,
15,000 5.28%, 8/22/96 14,751
Transamerica Finance Corporation,
15,000 5.06%, 6/14/96 14,904
15,000 5.33%, 6/25/96 14,878
-------
138,888
-------
FINANCE - Services - 12.6%
Goldman Sachs Group, L.P.,
15,000 5.30%, 5/14/96 14,971
15,000 5.28%, 7/26/96 14,811
Merrill Lynch & Co., Inc.,
13,000 5.05%, 5/21/96 12,964
13,000 5.00%, 6/21/96 12,908
12,000 5.33%, 8/06/96 11,828
Morgan Stanley Group, Inc.,
15,000 5.38%, 5/01/96 15,000
15,000 5.26%, 7/18/96 14,829
-------
97,311
-------
Food - 1.9%
CPC International, Inc.,
$15,000 5.29%, 8/21/96 $ 14,753
-------
INSURANCE - 7.3%
ITT Hartford Group, Inc.,
15,000 5.27%, 6/19/96 14,892
12,000 5.33%, 1/24/97 11,524
Prudential Funding Corporation,
15,000 5.10%, 5/29/96 14,941
15,000 5.05%, 6/07/96 14,922
-------
56,279
-------
MISCELLANEOUS - 1.9%
International Lease Financial Corporation,
15,000 5.32%, 6/27/96 14,874
-------
SOVEREIGN - 7.2%
Quebec Province of Canada,
15,000 5.27%, 6/18/96 14,895
9,400 5.08%, 7/17/96 9,298
8,000 5.07%, 7/22/96 7,908
Kingdom of Sweden,
15,000 5.24%, 5/16/96 14,967
9,000 5.03%, 6/04/96 8,957
-------
56,025
-------
UTILITIES - Communication - 5.3%
AT&T Capital Corporation,
15,000 5.05%, 5/22/96 14,956
13,000 5.03%, 5/23/96 12,960
Southwestern Bell Capital Corporation,
13,000 5.22%, 5/09/96 12,985
-------
40,901
-------
UTILITIES - GAS - 1.9%
British Gas Capital, Inc.,
15,000 5.12%, 5/24/96 14,951
-------
Total Commercial Paper 731,160
-------
VARIABLE RATE DEMAND NOTES - 1.3%
10,000 WPL Holdings Demand Note 10,000
-------
Total Variable Rate Demand Notes 10,000
-------
INVESTMENT COMPANIES - 4.6%
10 Financial Square Prime Obligation Fund $ 10
35,503 Short-Term Investments Co.
Liquid Assets Portfolio 35,503
-------
Total Investment Companies 35,513
-------
Total Investments 100.4% 776,673
-------
Liabilities, less Other Assets (0.4)% (3,330)
-------
NET ASSETS 100.0% $773,343
========
See notes to the financial statements.
INSTITUTIONAL MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988, as
a Wisconsin Corporation and is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended. The Institutional
Money Market Fund (the "Fund") which commenced operations on April 26, 1991,
is a separate, diversified investment portfolio of the Company.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in preparation of its financial statements. These policies
are in conformity with generally accepted accounting principles.
a) Investment Valuation - The securities are valued on the basis of amortized
cost for financial reporting purposes and federal income tax purposes, which
approximates market value. Variable rate demand notes are valued at cost which
approximates market value.
b) Federal Income Taxes - No provision for federal income taxes has been made
since the Fund has complied with the provisions of the Internal Revenue Code
available to regulated investment companies and intends to continue to so comply
in future years.
c) Expenses - The Fund is charged for those expenses that are directly
attributable to it, such as advisory, administration, service organization fees
and certain shareowner service fees. Expenses that are not directly attributable
to a portfolio are typically allocated among the Company's portfolios in
proportion to their respective net assets, number of shareowner accounts or net
sales, where applicable.
d) 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.
e) Distributions to Shareowners - Dividends from net investment income are
declared daily and paid monthly. Distributions of net realized capital gains, if
any, will be declared at least annually.
f) Other - The Fund recognizes interest income on the accrual basis. Discounts
and premiums are amortized over the life of the respective security. Investment
and shareowner transactions are recorded no later than the first business day
after the trade date. Realized gains and losses from investment transactions are
reported on an identified cost basis which is the same basis the Fund uses for
federal income tax purposes. Transactions in capital shares at $1.00 per share
are shown in the Statement of Changes in Net Assets. Generally accepted
accounting principles require that permanent financial reporting and tax
differences be reclassified to capital stock.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Fund has entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Fund, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual rate of 0.50% of the Fund's
first $2 billion of average daily net assets, and 0.40% of the Fund's average
daily net assets in excess of $2 billion. For the six months ended April 30,
1996, FIRMCO voluntarily waived $850 of its advisory fees, in thousands, for the
Fund.
Firstar Trust Company, an affiliate of FIRMCO, serves as custodian, transfer
agent and accounting services agent for the Fund.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, calculated 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 six months
ended April 30, 1996, $320 of administration fees, in thousands, were
voluntarily waived for the Fund.
Each Director of the Company who is not affiliated with FIRMCO receives an
annual fee from the Company for service as a Director and is eligible to
participate in a deferred compensation plan with respect to these fees.
Participants in the plan may designate their deferred Director's fees as if
invested in any one of the Portico Funds (with the exception of the MicroCap
Fund) or in 90-day U.S. Treasury bills. The value of each Director's deferred
compensation account will increase or decrease as if it were invested in shares
of the selected Portico Funds or 90-day U.S. Treasury bills. The Fund maintains
its proportionate share of the Company's liability for deferred fees.
- - PORTICO FUNDS ARE AVAILABLE THROUGH:
- the Portico Funds Center,
- Investment Specialists who are registered representatives of Elan Investment
Services, Inc., a registered broker/dealer, NASD and SIPC member,
- and through selected shareholder organizations.
This report is authorized for distribution only when preceded or accompanied by
a current prospectus.
TO OPEN AN ACCOUNT OR REQUEST INFORMATION
1-800-982-8909
1-414-287-3710
FOR ACCOUNT BALANCES AND INVESTOR SERVICES
1-800-228-1024
1-414-287-3808
PORTICO FUNDS CENTER
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
NASD Ref # X96-0520-021
- -------------------------------------------------------------------------------
April 30, 1996
SEMI-ANNUAL REPORT
INSTITUTIONAL CLASS
PORTICO FUNDS
SHORT-TERM BOND MARKET FUND
INTERMEDIATE BOND MARKET FUND
TAX-EXEMPT INTERMEDIATE BOND FUND
BOND IMMDEX/TM FUND
NOTICE TO INVESTORS
- - Shares of Portico Funds:
- - ARE NOT INSURED BY THE
FDIC, the US Government or any
other governmental agency;
- - are not bank deposits or obligations
of or guaranteed by Firstar Bank, its
parent company or its affiliates;
- - are subject to investment risks,
including possible loss of principal; and
- - are offered by B.C. Ziegler and Company,
member NASD, SIPC, and an independent
third-party distributor.
- - Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation for
such services as disclosed in the
current prospectus.
T A B L E O F C O N T E N T S
Page(s)
SHAREOWNER LETTER...................................................1-2
CONTROLLING THE ROLLER COASTER RIDE OF INTEREST RATES...............3-4
LOOKING AHEAD - THE FORECAST.........................................5
SHORT-TERM BOND MARKET FUND REVIEW..................................6-7
INTERMEDIATE BOND MARKET FUND REVIEW................................8-9
TAX-EXEMPT INTERMEDIATE BOND FUND REVIEW...........................10-11
BOND IMMDEX/TM FUND REVIEW.........................................12-13
STATEMENT OF ASSETS AND LIABILITIES..................................14
STATEMENT OF OPERATIONS..............................................15
STATEMENT OF CHANGES IN NET ASSETS...................................16
FINANCIAL HIGHLIGHTS...............................................17-19
SCHEDULE OF INVESTMENTS............................................20-28
NOTES TO THE FINANCIAL STATEMENTS..................................29-32
May 1996
DEAR SHAREOWNER:
INVESTMENT REVIEW
Bond and stock market returns diverged these past six months with the Lehman
Brothers Government/Corporate Bond Index gaining a mere .04%, while the Standard
& Poor's 500 Stock Index jumped 13.8%. Portico's fixed-income funds, which
maintain a duration "neutral" maturity strategy, posted returns which were in-
line with the performance results of each fund's respective index. Portico's
growth equity funds benefited from a shift in stock market investment trends
from "big and passive" (the S&P 500) to small and active management.
The combined assets of your Portico Fund Family today exceed $3.6 billion, a
266% increase from just five years ago. Your fund managers remain committed to
seeking above-average risk-adjusted returns over complete market cycles. The
matching of our clearly defined investment strategies and risk profiles to your
unique investment objectives allows the Portico Funds to translate investment
returns into investor returns.
MARKET OUTLOOK
Last December, we stressed the resiliency of the current five-year-old economic
expansion. The first quarter 2.8% real Gross Domestic Product (GDP) report
reinforces our 1996 outlook for continued moderate growth. On the inflation
front, we now believe a cyclical bump in monthly consumer price reports caused
by higher fuel and grain prices will bring annualized inflation in consumer
prices to 3%. With the rise in interest rates so far this year, we find real, or
inflation-adjusted rates across the maturity spectrum. While we continue to
believe interest rates will fall back to lower levels with a corresponding rise
in bond prices, we expect considerable volatility in the bond market for the
balance of 1996. This recent volatility reaffirms our fixed-income investment
policy of remaining duration neutral -- a strategy which allows us to maintain a
consistent management approach and eliminate the temptation to "zig when we
should zag.'
Our estimate for a 1996 federal budget compromise was too optimistic, although
the final budget accord does decrease domestic spending for the first time in a
generation -- but at a slower rate than we expected.
Our market outlook is predicated on the following economic and investment
trends:
1. A cyclical bump in monthly consumer price index (CPI) reports bringing
ANNUALIZED INFLATION TO 3%.
2. GROWING FOREIGN INVESTMENT IN U.S. STOCKS AND BONDS. According to Federal
Reserve data, U.S. investments overseas of $184 billion from 1990 to 1995,
dwarfs aggregate foreign purchases of U.S. securities of $11 billion.
However, a stronger dollar, along with America's relatively robust economy,
favors U.S. stocks and bonds.
3. DISINFLATIONARY PRODUCTIVITY GAINS. Computer memory prices, a good example,
have dropped 50-60% since last summer allowing personal computers to do
more for less money.
4. A CONTINUATION OF THE DEMOCRATIC AND REPUBLICAN STALEMATE with neither
party gaining a clear legislative majority in the November election.
However, the line item veto, Federal Reserve Chairman Greenspan's
reappointment, and the decrease in domestic spending are each investor
friendly initiatives.
5. Continued emergence of the UNITED STATES AS THE "MARKET OF CHOICE" for an
increasingly one market world of global investors. Over the past five
years, retail sales domestically have grown 5% annually while German and
Japanese retail sales were flat.
6. SLOW TO NO CORPORATE PROFIT GROWTH. With the S&P 500 after-tax profit
margins at peak cyclical levels and return on equity at an all-time high,
we expect flat to modest big company profits in 1996.
7. CONTINUED OUTPERFORMANCE OF OUR SMALL AND ACTIVE COMMON STOCK STRATEGY
based on above-market earnings gains and improving valuations
(price/earnings ratios).
8. TREASURY BOND YIELDS RANGING FROM 6 TO 7.5% ALONG WITH ABOVE-AVERAGE
INTEREST RATE VOLATILITY. Because real, or inflation-adjusted interest
rates remain attractive, we continue to advocate our core index fixed-
income strategy as a bulwark of investor portfolios.
We appreciate your continued confidence in the Portico Family of Funds and urge
you to read the portfolio reviews that follow.
J. SCOTT HARKNESS, CFA MARY ELLEN STANEK, CFA
Chairman/Chief President
Investment Officer
Firstar Investment Research & Management Company
CONTROLLING THE ROLLER COASTER RIDE OF INTEREST RATES
As a fixed-income investor, you might question whether or not this is the bond
market of 1994 all over again. You may recall that in that year interest rates
rose 2% due to stronger economic growth and fears of increasing inflation. The
first quarter of 1996 has reminded us of the volatility of 1994. As the graph
below shows, the monthly yield of the 10-Year Treasury Note over the past two
years looks like a wild roller coaster ride.
10-YEAR TREASURY NOTE
10/93 5.43%
11/93 5.83%
12/93 5.83%
1/94 5.70%
2/94 6.15%
3/94 6.77%
4/94 7.05%
5/94 7.17%
6/94 7.34%
7/94 7.12%
8/94 7.19%
9/94 7.62%
10/94 7.81%
11/94 7.91%
12/94 7.82%
1/95 7.60%
2/95 7.22%
3/95 7.20%
4/95 7.07%
5/95 6.30%
6/95 6.21%
7/95 6.45%
8/95 6.28%
9/95 6.17%
10/95 6.03%
11/95 5.76%
12/95 5.58%
1/96 5.60%
2/96 6.13%
3/96 6.34%
4/96 6.66%
Source: Bloomberg
Over the last several years, we have seen transformations in the fixed-income
markets. In the past, a typical fixed-income investor bought a bond and held it
to maturity. Today, fixed-income investors are more likely to hire a
professional manager by putting money into a mutual fund. The managers of these
funds, tending to be more sophisticated, trade more often and move larger
amounts of money very swiftly. As a result, trading volumes are up and
volatility is on the rise. Hedge funds, another new player in the bond market,
have also made the market a more volatile arena. These funds thrive on
volatility and tend to make big bets as trends in interest rates develop. As the
size and number of hedge funds have grown, their ability to influence the market
has also grown significantly. Their participation, often dwarfing the impact of
other market participants, can greatly accelerate and accentuate changes in the
market. These transformations, or trends of "institutionalization," in the
bond market appear to be here to stay and have increased the level of
volatility.
TAMING THE MADNESS IN THE BOND MARKET
Increased market volatility confirms our belief that it is extremely difficult
to consistently forecast interest rates successfully. Furthermore, with
increased volatility, the penalty for guessing wrong on the direction of rates
increases dramatically. As duration neutral portfolio managers, we do not
attempt to guess the direction of interest rates by shortening or extending our
portfolios. We believe in the efficiency of the market itself - over time,
investors will be paid inflation-adjusted returns equal to the level of risk
taken. We structure our portfolios in an attempt to control risk, or interest
rate sensitivity, by matching the duration of the portfolio to that of its
benchmark (duration measures interest rate sensitivity). This structured fixed-
income approach allows our portfolio managers to "tame the madness in the bond
market.' On a volatile day in the market, our portfolio managers can calmly and
analytically search the market for the relative value opportunities which arise
as other managers feverishly try to get in or get out, or go long or go short.
A MENU OF BOND FUND CHOICES
In the taxable funds, we offer a menu of bond fund choices, each targeted to a
particular maturity segment of the bond market. Portico Short-Term Bond Market
Fund is designed for investors with less tolerance for principal volatility and
lower total return expectations. Intermediate maturities are represented by
Portico Intermediate Bond Market Fund, and for investors seeking tax-exempt
income, we offer Portico Tax-Exempt Intermediate Bond Fund. Portico Bond
IMMDEX/TM Fund utilizes investments in the full maturity range (from cash
investments to 30-year bonds or longer) seeking to achieve total returns, which
we expect will be higher than returns of either the Short-Term Bond Market and
Intermediate Bond Market Funds over complete market cycles, but come with
additional principal volatility.
<TABLE>
PORTICO FAMILY OF FIXED-INCOME FUNDS
-------------------------------------
<CAPTION>
SHORT-TERM FULL-TERM
BOND FUND INTERMEDIATE-TERM BOND FUNDS BOND FUND
---------- ------------------------------------------------ ----------
Portico Short-Term Portico Intermediate Portico Tax-Exempt Portico Bond
Bond Market Fund Bond Market Fund Intermediate Bond Fund IMMDEX/TM Fund
---------------- ---------------- ---------------------- -------------
<S> <C> <C> <C> <C>
LEHMAN BROTHERS LEHMAN BROTHERS LEHMAN BROTHERS LEHMAN BROTHERS
BENCHMARK 1-3 YEAR GOV'T./CORP. INTERMEDIATE 5-YEAR GENERAL GOV'T./CORP.
BOND INDEX GOV'T./CORP. BOND INDEX OBLIGATION BOND INDEX BOND INDEX
AVERAGE QUALITY
OF HOLDINGS <F18> AA AA AAA AA
AVERAGE MATURITY 2.9 YEARS 4.6 YEARS 4.6 YEARS 9.1 YEARS
DURATION 1.7 YEARS 3.3 YEARS 3.9 YEARS 5.0 YEARS
PRINCIPAL VOLATILITY LOW MODERATE MODERATE HIGH
Lehman Brothers is neither a sponsor of nor affiliated with Portico Funds.
Average quality, maturity and duration reflect the portfolio as of April 30, 1996, and will change from time to time in connection
with the management of the portfolios pursuant to the policies described in the current prospectus.
<FN>
<F18>Dollar weighted average quality of portfolio securities held by the Funds.
</TABLE>
WHAT YOU SEE IS WHAT YOU GET
Since our funds are maintained with interest rate sensitivities (durations),
which are essentially equivalent to their underlying benchmarks, Portico Short-
Term Bond Market Fund should normally have less expected interest rate
sensitivity than other Portico bond funds (as evidenced by its shorter duration
of 1.7<F19> years). Similarly, with its 5.0<F19> year duration, Portico Bond
IMMDEX/TM Fund will have the greatest expected interest rate sensitivity. With
durations of 3.3<F19> years and 3.9<F19> years respectively, Portico
Intermediate Bond Market Fund and Portico Tax-Exempt Intermediate Bond Fund are
expected to display relatively moderate volatility when interest rates change.
Because these relationship will NOT change as a result of our outlook for the
future level of interest rates, with the Portico bond funds "what you see is
what you get.' The structured approach allows the investor to select the bond
fund that is right for his or her needs and objectives, keeping in mind the
TRADEOFF BETWEEN RISK AND REWARD. Rest assured that we keep each portfolio's
risks in line with the objective by remaining duration neutral to the benchmark,
thus keeping our portfolios on track in the wild roller coast ride of interest
rates.
<F19>Durations as of April 30, 1996.
LOOKING AHEAD - THE FORECAST
Looking ahead at the next six months, we see continued volatility for the fixed-
income markets, moderate economic growth, and inflation averaging in the range
of 3% -- higher than what we had forecast in our last report. However, interest
rates at current levels are sufficiently high enough to produce attractive real,
or inflation-adjusted yields. As always, we continue to advocate "staying the
course', knowing that the Funds have achieved competitive relative returns and
our structured approach allows you to reasonably compare the volatility of our
fund offerings.
We appreciate your continued confidence in the Portico Funds and look forward to
providing you with the benefits of our structured fixed-income investment
strategies.
Mary Ellen Stanek, CFA
Teresa R. Westman, CFA
Daniel A. Tranchita, CFA
Warren D. Pierson, CFA
Portfolio Managers
Firstar Investment Research & Management Company
SHORT-TERM BOND MARKET FUND
Portico Short-Term Bond Market Fund seeks to provide an annual rate of total
return, comparable to the annual rate of total return of the Lehman Brothers 1-3
Year Government/Corporate Bond Index, before Fund expenses. Of Portico's three
taxable fund offerings, we expect the Short-Term Bond Market Bond Fund will have
the lowest volatility of principal and correspondingly lower expected total
returns over complete market cycles.
Despite interest rate increases over the past six months, Portico Short-Term
Bond Market Fund had a moderate positive total return (due to its relatively
short duration) and performed well versus its benchmark. Our added-value work in
the portfolio continues to be accomplished in three broad areas: ISSUE
SELECTION, SECTOR ALLOCATION, and YIELD CURVE POSITIONING.
ISSUE SELECTION decisions are a critical aspect of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added-value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. government agency debentures; however, we do invest in short duration
Collateralized Mortgage Obligations (CMOs). Each CMO considered for purchase
goes through rigorous testing of cash flows over a wide range of prepayment
scenarios. Those backed by high quality mortgages with stable duration
characteristics may be purchased. To increase the portfolio's yield, we have
significant exposure to non-Treasury securities. Currently, incremental yield
spreads over U.S. Treasury obligations are fairly modest, making higher quality
securities attractive on a relative basis.
YIELD CURVE POSITIONING decisions are also important to the portfolio's
performance. We are currently over-weighted in securities with maturities of
less than one year and in securities which have maturities between two and three
years.
We continue to feel that our "what you see is what you get" approach to fixed-
income investing is particularly valuable to investors in today's increasingly
volatile bond market.
PORTFOLIO MANAGER PROFILE
- ---------------------------
Mary Ellen Stanek, CFA, President of Firstar Investment Research & Management
Company (FIRMCO) and Daniel A. Tranchita, CFA, Vice President and Portfolio
Manager, co-manage the Fund - Mary Ellen since its inception on December 29,
1989 and Dan since January 1, 1993. Mary Ellen has 17 years of investment
management experience and was named a Director of FIRMCO in 1992. Prior to
joining FIRMCO, she headed the Fixed Income and Quantitative Investment
Management Department at Firstar Trust Company. Mary Ellen received her BA from
Marquette University in 1978 and her MBA from the University of Wisconsin-
Milwaukee in 1984. Dan has been with Firstar since 1989 and has seven years of
investment management experience. He received his BA in 1987 and his MBA in 1989
from Marquette University. Mary Ellen and Dan are both Chartered Financial
Analysts.
PORTICO SHORT-TERM BOND MARKET FUND
- ------------------------------------
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95 4/96
-------- ----- ----- ----- ----- ----- ----- -----
(Short-Term
Bond Market
Fund) 10,000 10,464 11,865 12,966 13,833 14,035 15,290 15,616
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 5 Years 12/29/89
------------ ------ ------- ------- -------------
PORTICO SHORT-TERM
BOND MARKET FUND 2.2 7.1 5.0 7.0 7.3
LEHMAN BROTHERS 1-3 YEAR
GOV'T./CORP. BOND INDEX<F20> 2.1 6.9 4.8 6.4 7.1
<F20> The Lehman Brothers 1-3 Year Gov't./Corp. Bond Index is an unmanaged
market value weighted index measuring both principal price changes of, and
income 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; not more than
three years remaining to maturity; and minimum out standing par value of $100
million. An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The performance for the Series Institutional shares has
been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
SECTOR DISTRIBUTION
4/30/96
- ----------------------------------------
U.S. TREASURY 14%
- ----------------------------------------
U.S. GOVERNMENT AGENCY 1%
- ----------------------------------------
MORTGAGE-BACKED 27%
- ----------------------------------------
FINANCE, BANKING, BROKERAGE 15%
- ----------------------------------------
INDUSTRIAL 7%
- ----------------------------------------
UTILITY 7%
- ----------------------------------------
INTERNATIONAL/YANKEE 3%
- ----------------------------------------
ASSET-BACKED 22%
- ----------------------------------------
CASH 1%
- ----------------------------------------
OTHER 3%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
PORTFOLIO COMPOSITION
4/30/96
- ----------------------------------------
AVERAGE MATURITY 2.9 YEARS
- ----------------------------------------
AVERAGE DURATION 1.7 YEARS
- ----------------------------------------
QUALITY DISTRIBUTION
4/30/96
- ----------------------------------------
U.S. TREASURY 14%
- ----------------------------------------
U.S. GOVERNMENT AGENCY 14%
- ----------------------------------------
Aaa 38%
- ----------------------------------------
Aa 4%
- ----------------------------------------
A 26%
- ----------------------------------------
Baa 4%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
SEC 30-DAY YIELD
- ----------------------------------------
5.86%
- ----------------------------------------
TOTAL FUND NET ASSETS
4/30/96
- ----------------------------------------
$198,334,110
- ----------------------------------------
INTERMEDIATE BOND MARKET FUND
Portico Intermediate Bond Market Fund seeks to provide an annual rate of total
return comparable to the annual rate of total return of the Lehman Brothers
Intermediate Government/Corporate Bond Index, before Fund expenses. We expect
the Intermediate Bond Market Fund will have moderate volatility of principal and
correspondingly higher expected total returns over complete market cycles.
Despite interest rate increases that occurred over the past six months, Portico
Intermediate Bond Market Fund had a modest positive total return and performed
well versus its benchmark. Our added-value work in the portfolio continues to be
accomplished in three broad areas: ISSUE SELECTION, SECTOR ALLOCATION, and YIELD
CURVE POSITIONING.
ISSUE SELECTION decisions are a critical element of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added-value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. government agency debentures and mortgage-backed securities. While we have
very little exposure to collateralized mortgage obligations (CMOs), when we do
invest in CMOs we scrutinize each investment carefully to confirm our belief
that it will add value to the Fund. To increase the portfolio's yield, we have
significant exposure to non-Treasury securities. Currently, incremental yield
spreads over U.S. Treasury obligations are fairly modest, making higher quality
securities attractive on a relative basis.
YIELD CURVE POSITIONING decisions are also important to the portfolio's
performance. We are currently over-weighted in securities with three and four
year maturities. We also think the seven year area has reasonable value.
We continue to feel that our "what you see is what you get" approach to fixed-
income investing is particularly valuable to investors in today's increasingly
volatile bond market.
PORTFOLIO MANAGER PROFILE
- --------------------------
Mary Ellen Stanek, CFA, President of Firstar Investment Research & Management
Company (FIRMCO) and Teresa R. Westman, CFA, Senior Vice President and Senior
Portfolio Manager have co-managed the Fund since its inception on January 5,
1993. Mary Ellen has 17 years of investment management experience and was named
a Director of FIRMCO in 1992. Prior to joining FIRMCO, she headed the Fixed
Income and Quantitative Investment Management Department at Firstar Trust
Company. Mary Ellen received her BA from Marquette University in 1978 and her
MBA from the University of Wisconsin-Milwaukee in 1984. Teresa has been with
Firstar since 1987 and has 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. Mary Ellen and Teresa are both Chartered
Financial Analysts.
PORTICO INTERMEDIATE BOND MARKET FUND
1/5/93 10/93 10/94 10/95 4/96
------ ----- ----- ----- ----
Intermediate Bond
Market Fund 10,000 10,858 10,670 11,978 12,128
This chart assumes an initial investment of $10,000 made on 1/5/93 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
FISCAL SINCE INCEPTION
YEAR-TO-DATE 1 YEAR 3 YEARS 1/5/93
------------- ------ -------- -------------
PORTICO INTERMEDIATE
BOND MARKET FUND 1.3 8.1 5.1 6.0
LEHMAN BROTHERS INTERMEDIATE
GOV'T./CORP. BOND INDEX <F21> 1.2 7.8 5.1 6.1
<F21> The Lehman Brothers Intermediate Gov't./Corp. Bond Index is an unmanaged
market value weighted index measuring both principal price changes of, and
income provided by, the underlying universe of securities that comprise the
index. Securities included in the index must meet the following criteria: fixed
as opposed to variable rate; remaining maturity of one to ten years; minimum
outstanding par value of $100 million; and rated investment grade or higher by
Moody's, Standard & Poor's, or Fitch, in that order. An investment cannot be
made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The performance for the Series Institutional shares has
been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
SECTOR DISTRIBUTION
4/30/96
- ----------------------------------------
U.S. TREASURY 18%
- ----------------------------------------
U.S. GOVERNMENT AGENCY 1%
- ----------------------------------------
MORTGAGE-BACKED 12%
- ----------------------------------------
FINANCE, BANKING, BROKERAGE 33%
- ----------------------------------------
INDUSTRIAL 2%
- ----------------------------------------
UTILITY 1%
- ----------------------------------------
INTERNATIONAL 4%
- ----------------------------------------
ASSET-BACKED 25%
- ----------------------------------------
CASH 2%
- ----------------------------------------
OTHER 2%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
PORTFOLIO COMPOSITION
4/30/96
- ----------------------------------------
AVERAGE MATURITY 4.6 YEARS
- ----------------------------------------
AVERAGE DURATION 3.3 YEARS
- ----------------------------------------
QUALITY DISTRIBUTION
4/30/96
- ----------------------------------------
U.S. TREASURY 19%
- ----------------------------------------
U.S. GOVERNMENT AGENCY 10%
- ----------------------------------------
AAA 28%
- ----------------------------------------
A 40%
- ----------------------------------------
BAA 3%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
SEC 30-DAY YIELD
- ----------------------------------------
5.90%
- ----------------------------------------
TOTAL FUND NET ASSETS
4/30/96
- ----------------------------------------
$165,381,011
- ----------------------------------------
TAX-EXEMPT INTERMEDIATE BOND FUND
Portico Tax-Exempt Intermediate Bond Fund seeks to provide current income exempt
from federal income tax and emphasizes total return with relatively low
volatility of principal. The Fund currently has an average quality rating of AAA
and a 4.6 year average maturity. As a result, we expect it to display less
principal volatility than the typical municipal bond fund which, according to
Lipper Analytical Services (a leading mutual fund rating service), has an
average maturity of 19 years. The Fund does not currently buy issues which are
subject to the alternative minimum tax.
After rallying through 1995 and into early 1996, the bond market changed its
course abruptly in mid-February. Since that time, U.S. Treasury yields have
risen approximately 100 basis points (one percentage point), while municipal
yields have risen a less severe 70 basis points. Portico Tax-Exempt Intermediate
Bond Fund has offered a place of refuge from falling bond prices in 1996. The
Fund's strong relative performance year-to-date has been a result of its unique
position in the short- to intermediate-term sector of the municipal bond market,
careful security selection and strategic yield curve positioning.
EMPHASIZING SHORT AND INTERMEDIATE MUNICIPAL SECURITIES helped the Fund preserve
its value relative to the municipal market and to the fixed-income market as a
whole.
CAREFUL SELECTION OF SECURITIES has contributed significantly to performance
over the last six months. The Fund has focused on high quality issues with
particular emphasis on prerefunded bonds (bonds secured with U.S. Treasury
issues). Emphasizing higher coupon bonds which trade at prices well above par,
the Fund has minimal exposure to the adverse effect of rising rates on lower
coupon bonds.
YIELD CURVE POSITIONING also played an important role in Portico Tax-Exempt
Intermediate Bond Fund's performance over the last six months. Unlike the
Treasury yield curve which steepened dramatically, the municipal yield curve
experienced only a modest steepening since last October. We believe our
concentration of maturities in the 4-5 year maturity range contributed
significantly to the Fund's performance over this time frame.
PORTFOLIO MANAGER PROFILE
- --------------------------
Warren D. Pierson, CFA, Vice President and Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) has managed the Fund since
June 22, 1993. Since joining Firstar in 1985, his responsibilities have included
trading government and government agency issues, as well as money market
instruments. His current portfolio management responsibilities focus on the tax-
exempt bond market. Warren received his BA from Lawrence University in 1984. He
is a Chartered Financial Analyst, as well as a member of the Association for
Investment Management and Research and the Milwaukee Investment Analysts
Society.
PORTICO TAX-EXEMPT INTERMEDIATE BOND FUND
2/8/93 10/93 10/94 10/95 4/96
------ ----- ----- ----- ----
Tax-Exempt
Intermediate
Bond Fund 10,000 10,536 10,459 11,440 11,570
This chart assumes an initial investment of $10,000 made on 2/8/93 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 2/8/93
------------- ------- ------- ------------
PORTICO TAX-EXEMPT
INTERMEDIATE BOND FUND 1.1 6.0 4.7 4.6
LEHMAN BROTHERS 5 YEAR GENERAL
OBLIGATION BOND INDEX<F22> 1.6 7.2 5.1 5.4
<F22> The Lehman Brothers 5 Year General Obligation Bond Index, an unmanaged
index, is a total return performance benchmark for the investment-grade tax-
exempt bond market. To be included in this index, a municipal bond must be a
state or local General Obligation bond; have a minimum credit rating of at least
Baa; have been issued as part of an offering of at least $50 million; have a
maturity amount outstanding of at least $3 million; have been issued within the
last five years; and have a maturity of 4 to 6 years. An investment cannot be
made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
SECTOR DISTRIBUTION
4/30/96
- ----------------------------------------
GENERAL OBLIGATIONS 7%
- ----------------------------------------
ESCROWED/PREREFUNDED 73%
- ----------------------------------------
INSURED 9%
- ----------------------------------------
REVENUE 8%
- ----------------------------------------
CASH EQUIVALENT 3%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
QUALITY DISTRIBUTION
4/30/96
- ----------------------------------------
AAA 89%
- ----------------------------------------
AA 6%
- ----------------------------------------
A 5%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
PORTFOLIO COMPOSITION
4/30/96
- ----------------------------------------
AVERAGE MATURITY 4.6 YEARS
- ----------------------------------------
AVERAGE DURATION 3.9 YEARS
- ----------------------------------------
SEC 30-DAY YIELD
- ----------------------------------------
4.23%
- ----------------------------------------
TOTAL FUND NET ASSETS
4/30/96
- ----------------------------------------
$38,014,494
- ----------------------------------------
BOND IMMDEX/TM FUND
Portico Bond IMMDEX/TM Fund seeks to provide an annual rate of total return
comparable to the annual rate of total return of the Lehman Brothers
Government/Corporate Bond Index, before Fund expenses. Of Portico's three
taxable fund offerings, we expect the Bond IMMDEX/TM Fund will have the highest
volatility of principal and commensurately higher expected total returns over
complete market cycles.
Despite interest rate increases that occurred over the past six months, Portico
Bond IMMDEX Fund avoided a negative total return (even though it has the longest
duration of all of the Portico bond funds) and performed well versus its
benchmark. Our added-value work in the portfolio continues to be accomplished in
three broad areas: ISSUE SELECTION, SECTOR ALLOCATION, and YIELD CURVE
POSITIONING.
ISSUE SELECTION decisions are a critical element of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added-value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. Government agency debentures and mortgage backed securities. While we do
invest in collateralized mortgage obligations, we scrutinize each investment
carefully to confirm our belief that it will add value to the Fund. To increase
the portfolio's yield, we have significant exposure to non-Treasury securities.
Currently, incremental yield spreads over U.S. Treasury obligations are fairly
modest, making higher quality securities attractive on a relative basis.
YIELD CURVE POSITIONING decisions are also important to the portfolio's
performance. We are currently over-weighted in securities with three and four
year maturities and those with fifteen to twenty year maturities. We believe the
Fund's "all-weather" yield curve positioning has helped in the recent volatile
interest rate environment.
We continue to feel that our "what you see is what you get" approach to fixed-
income investing is particularly valuable to investors in today's increasingly
volatile bond market.
PORTFOLIO MANAGER PROFILE
- --------------------------
Mary Ellen Stanek, CFA, President of Firstar Investment Research & Management
Company (FIRMCO) and Teresa R. Westman, CFA, Senior Vice President and Senior
Portfolio Manager have co-managed the Fund - Mary Ellen since its inception on
December 29, 1989 and Teresa since January 1, 1992. Mary Ellen has 17 years of
investment management experience and was named a Director of FIRMCO in 1992.
Prior to joining FIRMCO, she headed the Fixed Income and Quantitative Investment
Management Department at Firstar Trust Company. Mary Ellen received her BA From
Marquette University in 1978 and her MBA from the University of Wisconsin-
Milwaukee in 1984. Teresa has been with Firstar since 1987 and has 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. Mary Ellen and
Teresa are both Chartered Financial Analysts.
PORTICO BOND IMMDEX/TM FUND
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95 4/96
-------- ----- ----- ----- ----- ----- ----- -----
Bond IMMDEX/TM
Fund 10,000 10,421 12,105 13,376 15,154 14,565 16,93416,936
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 5 Years 12/29/89
------------ ------ ------- ------- ------------
PORTICO BOND
IMMDEX/TM FUND 0.1 9.0 5.8 8.6 8.7
LEHMAN BROTHERS
GOVT/CORP BOND INDEX<F23> 0.0 8.7 5.5 8.3 8.5
<F23> 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 under lying universe of securities that comprise the index. Securities
included in the index must meet the following criteria: fixed as opposed to
variable rate; not less than one year to maturity; minimum outstanding par value
of $100 million; and rated investment grade or higher by Moody's, Standard &
Poor's, or Fitch, in that order. An investment cannot be made directly in an
index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The performance for the Series Institutional shares has
been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
SECTOR DISTRIBUTION
4/30/96
- ----------------------------------------
U.S. TREASURY 30%
- ----------------------------------------
MORTGAGE-BACKED 4%
- ----------------------------------------
FINANCE, BANKING, BROKERAGE 32%
- ----------------------------------------
INDUSTRIAL 3%
- ----------------------------------------
UTILITY 3%
- ----------------------------------------
INTERNATIONAL 5%
- ----------------------------------------
ASSET-BACKED 20%
- ----------------------------------------
CASH 2%
- ----------------------------------------
OTHER 1%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
PORTFOLIO COMPOSITION
4/30/96
- ----------------------------------------
AVERAGE MATURITY 9.1 YEARS
- ----------------------------------------
AVERAGE DURATION 5.0 YEARS
- ----------------------------------------
QUALITY DISTRIBUTION
4/30/96
- ----------------------------------------
U.S. TREASURY 30%
- ----------------------------------------
U.S. GOVERNMENT AGENCY 3%
- ----------------------------------------
AAA 24%
- ----------------------------------------
AA 2%
- ----------------------------------------
A 36%
- ----------------------------------------
BAA 5%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
SEC 30-DAY YIELD
- ----------------------------------------
6.36%
- ----------------------------------------
TOTAL FUND NET ASSETS
4/30/96
- ----------------------------------------
$362,147,183
- ----------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
APRIL 30, 1996
(UNAUDITED)
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
---------- ---------- ---------- ----------
ASSETS:
Investments, at value
(cost $199,338, $163,376,
$37,243 and $355,130,
respectively) $197,346 $162,447 $ 37,445 $356,839
Interest receivable 3,160 2,995 712 5,917
Capital shares sold 233 32 - 110
Organization costs, net of
accumulated amortization - 4 3 -
Cash 16 - - 9
Other assets 15 16 7 18
-------- -------- -------- --------
Total Assets 200,770 165,494 38,167 362,893
-------- -------- -------- --------
LIABILITIES:
Payable for securities
purchased 2,262 - 107 532
Capital shares redeemed 34 3 - 31
Payable to affiliates 114 77 27 154
Accrued expenses 26 33 19 29
-------- -------- -------- --------
Total Liabilities 2,436 113 153 746
-------- -------- -------- --------
NET ASSETS $198,334 $165,381 $ 38,014 $362,147
======== ======== ======== ========
NET ASSETS CONSIST OF:
Capital stock 201,151 167,058 37,903 360,368
Undistributed net
investment income 158 132 20 379
Undistributed accumulated
net realized (losses) (983) (880) (111) (309)
Unrealized net appreciation
(depreciation) on investments (1,992) (929) 202 1,709
-------- -------- -------- --------
Total Net Assets $193,334 $165,381 $ 38,014 $362,147
======== ======== ======== ========
SERIES A:
Net assets $ 55,118 $ 14,163 $ 9,344 $ 34,499
Shares authorized ($.0001
par value) 500,000 500,000 500,000 500,000
Shares issued and outstanding 5,404 1,409 921 1,277
Net asset value and
redemption price
per share <F24> $10.20 $10.05 $10.14 $27.02
======== ======== ======== ========
Maximum offering price
per share <F24> $10.41 $10.26 $10.35 $27.57
======== ======== ======== ========
SERIES INSTITUTIONAL:
Net assets $143,216 $151,218 $ 28,670 $327,648
Shares authorized
($.0001 par value) 500,000 500,000 500,000 500,000
Shares issued and outstanding 14,041 15,041 2,827 12,126
Net asset value, redemption
price and offering
price per share <F24> $10.20 $10.05 $10.14 $27.02
======== ======== ======== ========
<F24> Amounts may not recalculate due to rounding.
See notes to the financial statements.
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
SIX MONTHS ENDED APRIL 30, 1996
(UNAUDITED)
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
---------- ---------- ---------- ----------
INVESTMENT INCOME:
Interest income $5,430 $5,061 $868 $10,966
-------- -------- -------- --------
EXPENSES:
Investment advisory fees 504 404 92 503
Administration fees 101 97 22 201
Shareowner servicing and
accounting costs 70 47 40 57
Service organization fees -
Series A 63 16 11 33
Custody fees 17 15 5 31
Federal and state
registration fees 8 11 3 12
Professional fees 14 11 12 13
Reports to shareowners 16 7 5 9
Amortization of
organization costs - 1 1 -
Directors' fees and expenses 4 4 3 4
Other 3 4 1 3
-------- -------- -------- --------
Total expenses before waiver 800 617 195 866
Less: Waiver of expenses (316) (197) (93) (116)
-------- -------- -------- --------
Net Expenses 484 420 102 750
-------- -------- -------- --------
NET INVESTMENT INCOME 4,946 4,641 766 10,216
-------- -------- -------- --------
REALIZED AND UNREALIZED Gain (LOSS):
Net realized gain on
investment transactions 645 954 31 740
Change in unrealized
appreciation (depreciation)
on investments (2,803) (3,990) (396) (11,520)
-------- -------- -------- --------
Net loss on investments (2,158) (3,036) (365) (10,780)
-------- -------- -------- --------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $2,788 $1,605 $401 $ (564)
======== ======== ======== ========
See notes to the financial statements.
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<CAPTION>
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE BOND IMMDEX/TM
FUND FUND FUND FUND
-------------------- ---------------------- ------------------- -------------------
Six months Year Six months Year Six months Year Six months Year
ended ended ended ended ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31,
1996 1995 1996 1995 1996 1995 1996 1995
--------- --------- --------- --------- --------- --------- --------- ---------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $4,946 $ 7,887 $ 4,641 $ 6,720 $766 $ 1,332 $10,216 $ 18,025
Net realized gain (loss) on
investments 645 (329) 954 (417) 31 8 740 (890)
Change in unrealized appreciation
(depreciation) on investments (2,803) 3,275 (3,990) 6,232 (396) 1,367 (11,520) 24,964
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in
net assets resulting
from operations 2,788 10,833 1,605 12,535 401 2,707 (564) 42,099
-------- -------- -------- -------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Shares sold 80,100 47,914 45,484 61,490 8,672 16,278 78,973 72,259
Shares issued to owners in
reinvestment of dividends 4,038 6,375 2,966 4,371 358 676 8,810 17,191
-------- -------- -------- -------- -------- -------- -------- --------
84,138 54,289 48,450 65,861 9,030 16,954 87,783 89,450
Shares redeemed (26,374) (37,051) (20,568) (19,569) (5,956) (9,203) (27,124) (56,782)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase 57,764 17,238 27,882 46,292 3,074 7,751 60,659 32,668
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SHAREOWNERS <F25>:
From net investment income - (1,426) - (1,081) - (228) - (3,950)
-------- -------- -------- -------- -------- -------- -------- --------
From net realized gains - - - - - - - (404)
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS <F25>:
From net investment income (1,433) (2,191) (360) (475) (172) (238) (789) (910)
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS <F25>:
From net investment income (3,474) (4,133) (4,263) (5,060) (595) (853) (9,308) (14,132)
-------- -------- -------- -------- -------- -------- -------- --------
TOTAL INCREASE IN NET ASSETS 55,645 20,321 24,864 52,211 2,708 9,139 49,998 55,371
NET ASSETS:
Beginning of period 142,689 122,368 140,517 88,306 35,306 26,167 312,149 256,778
-------- -------- -------- -------- -------- -------- -------- --------
End of period (including undistributed
net investment income of $158, $119,
$132, $112, $20, $20, $379 and
$261, respectively) $198,334 $142,689 $165,381 $140,517 $38,014 $35,306 $362,147 $312,149
======== ======== ======== ======== ======== ======== ======== ========
<FN>
<F25> On January 1, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective on
January 9, 1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares. Distributions
to shareowners from net investment income and net realized gains reflect activity for the Funds for the period November 1, 1994,
through January 9, 1995, and for each Fund's respective class of Shares for the period from January 10, 1995, through October 31,
1995.
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
SHORT-TERM BOND MARKET FUND
------------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995 <F28> Year ended October 31,
------------------------- ---------------------- ---------------------------------
Series Series Series Series
A Institutional A Institutional 1994 1993 1992<F27> 1991
---------- ------------- ---------- -------------- ---- ---- -------- ----
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $10.28 $10.28 $10.03 $10.03 $10.56 $10.60 $10.33 $ 9.79
Income from investment operations:
Net investment income <F29> 0.29 0.30 0.61 0.63 0.56 0.58 0.64 0.73
Net realized and unrealized
gains (losses) on securities (0.08) (0.08) 0.24 0.24 (0.41) 0.10 0.29 0.54
-------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations 0.21 0.22 0.85 0.87 0.15 0.68 0.93 1.27
-------- -------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.29) (0.30) (0.60) (0.62) (0.56) (0.58) (0.64) (0.73)
Distributions from capital gains - - - - (0.12) (0.14) (0.02) -
-------- -------- -------- -------- -------- -------- -------- --------
Total distributions (0.29) (0.30) (0.60) (0.62) (0.68) (0.72) (0.66) (0.73)
-------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $10.20 $10.20 $10.28 $10.28 $10.03 $10.56 $10.60 $10.33
======== ======== ======== ======== ======== ======== ======== ========
Total return <F30><F31> 2.05% 2.18% 8.74% 8.95% 1.46% 6.70% 9.28% 13.39%
Supplemental data and ratios:
Net assets, in thousands,
end of period $55,118 $143,216 $47,730 $94,959 $122,368 $142,518 $129,409 $63,183
Ratio of net expenses
to average net assets <F32> 0.75% 0.50% 0.69% 0.50% 0.50% 0.52% 0.60% 0.60%
Ratio of net investment income
to average net assets <F32> 5.70% 5.95% 6.04% 6.23% 5.43% 5.53% 6.00% 7.13%
Portfolio turnover rate <F33> 29.69% 29.69% 100.58% 100.58% 76.13% 87.62% 82.20% 66.80%
<FN>
<F26> Commencement of operations.
<F27> Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F28> On January 9, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective
January 9, 1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares. For the year
ended October 31, 1995, the Financial Highlights ratios of net expenses to average net assets, ratios of net investment income to
average net assets, total return and the per share income from investment operations and distributions are presented on a basis
whereby the Fund's net investment income, net expenses, net realized and unrealized gains (losses) and distributions for the period
November 1, 1994 through January 9, 1995, were allocated to each class of shares based upon the relative net assets of each class of
shares as of the close of business on January 9, 1995, and the results thereof combined with the results of operations and
distributions for each applicable class for the period January 10, 1995 through October 31, 1995.
<F29> For the Tax-Exempt Intermediate Bond Fund, substantially all investment income is exempt from Federal income tax.
<F30> Not annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds for the period
ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds, and for the period ended April 30,
1996, for all Funds.
<F31> The total return calculation does not reflect the 2% front end sales charge for Series A.
<F32> Annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds and for the period
ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds, and for the period ended April 30,
1996, for all Funds.
<F33> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares
issued.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (cont'd)
<CAPTION>
INTERMEDIATE BOND MARKET FUND
----------------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F28> Year ended Jan. 5, 1993 <F26>
------------------------------- ------------------------- Oct. 31, through
Series A Series Institutional Series A Series Institutional 1994 Oct. 31, 1993
-------- -------------------- --------- --------------------- ---- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $10.21 $10.21 $9.67 $9.67 $10.45 $10.00
Income from investment operations:
Net investment income <F29> 0.28 0.29 0.60 0.62 0.51 0.40
Net realized and unrealized
gains (losses) on securities (0.16) (0.16) 0.53 0.53 (0.69) 0.45
-------- -------- -------- -------- -------- --------
Total from investment
operations 0.12 0.13 1.13 1.15 (0.18) 0.85
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.28) (0.29) (0.59) (0.61) (0.51) (0.40)
Distributions from capital gains - - - - (0.09) -
-------- -------- -------- -------- -------- --------
Total distributions (0.28) (0.29) (0.59) (0.61) (0.60) (0.40)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $10.05 $10.05 $10.21 $10.21 $9.67 $10.45
======== ======== ======== ======== ======== ========
Total return <F30><F31> 1.13% 1.25% 12.04% 12.25% (1.73)% 8.58%
Supplemental data and ratios:
Net assets, in thousands,
end of period $14,163 $151,218 $11,576 $128,941 $88,306 $56,794
Ratio of net expenses
to average net assets <F32> 0.75% 0.50% 0.69% 0.50% 0.50% 0.50%
Ratio of net investment income
to average net assets <F32> 5.51% 5.76% 6.07% 6.26% 5.19% 4.65%
Portfolio turnover rate <F33> 46.77% 46.77% 66.69% 66.69% 56.25% 82.37%
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONT'D)
<CAPTION>
TAX-EXEMPT INTERMEDIATE BOND FUND
-----------------------------------------------------------------------------------------
Six months Year ended
April 30, 1996 Oct. 31, 1995<F28> Year ended Feb. 8, 1993 <F26>
--------------------------- --------------------------- Oct. 31, through
Series A Series Inst'l. Series A Series Inst'l. 1994 Oct. 31, 1993
--------- -------------- -------- -------------- ------ --------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $10.23 $10.24 $9.78 $9.78 $10.26 $10.00
Income from investment operations:
Net investment income (4) 0.20 0.22 0.42 0.44 0.41 0.27
Net realized and unrealized
gains (losses) on securities (0.09) (0.10) 0.45 0.46 (0.48) 0.26
-------- -------- -------- -------- -------- --------
Total from investment
operations 0.11 0.12 0.87 0.90 (0.07) 0.53
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.20) (0.22) (0.42) (0.44) (0.41) (0.27)
Distributions from capital gains - - - - - -
-------- -------- -------- -------- -------- --------
Total distributions (0.20) (0.21) (0.42) (0.44) (0.41) (0.27)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $10.14 $10.14 $10.23 $10.24 $9.78 $10.26
======== ======== ======== ======== ======== ========
Total return <F30><F31> 1.11% 1.14% 9.07% 9.38% (0.73)% 5.36%
Supplemental data and ratios:
Net assets, in thousands,
end of period $9,344 $28,670 $7,711 $27,595 $26,167 $23,866
Ratio of net expenses
to average net assets <F32> 0.75% 0.50% 0.71% 0.51% 0.60% 0.59%
Ratio of net investment income
to average net assets <F32> 3.98% 4.23% 4.25% 4.45% 4.04% 3.75%
Portfolio turnover rate <F33> 13.11% 13.11% 44.13% 44.13% 58.54% 3.23%
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONT'D)
<CAPTION>
BOND IMMDEX/TM FUND
------------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F28> Year ended October 31,
------------------------- ---------------------- ---------------------------------
Series Series Series Series
A Inst'l A Inst'l 1994 1993 1992<F27> 1991
---------- ------------- ---------- -------------- ---- ---- -------- ----
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $27.82 $27.82 $25.67 $25.67 $28.91 $27.31 $26.50 $24.52
Income from investment operations:
Net investment income <F29> 0.79 0.84 1.68 1.74 1.65 1.68 1.75 1.85
Net realized and unrealized
gains (losses) on securities (0.79) (0.81) 2.30 2.29 (2.74) 1.83 0.96 1.98
-------- --------- -------- -------- -------- -------- -------- --------
Total from investment
operations - 0.03 3.98 4.03 (1.09) 3.51 2.71 3.83
-------- --------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.80) (0.83) (1.79) (1.84) (1.65) (1.70) (1.76) (1.85)
Distributions from capital gains - - (0.04) (0.04) (0.50) (0.21) (0.14) -
-------- --------- -------- -------- -------- -------- -------- --------
Total distributions (0.80) (0.83) (1.83) (1.88) (2.15) (1.91) (1.90) (1.85)
-------- --------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $27.02 $27.02 $27.82 $27.82 $25.67 $28.91 $27.31 $26.50
======== ======== ======== ======== ======== ======== ======== ========
Total return <F30><F31> (0.05)% 0.07% 16.05% 16.26% (3.89)% 13.30% 10.49% 16.16%
Supplemental data and ratios:
Net assets, in thousands,
end of period $34,499 $327,648 $21,875 $290,274 $256,778 $260,468 $181,421 $90,034
Ratio of net expenses
to average net assets <F32> 0.68% 0.43% 0.64% 0.44% 0.48% 0.50% 0.50% 0.50%
Ratio of net investment income
to average net assets <F32> 5.86% 6.11% 6.31% 6.51% 6.14% 6.10% 6.92% 7.85%
Portfolio turnover rate <F33> 24.13% 24.13% 41.67% 41.67% 49.70% 81.18% 37.72% 131.69%
<FN>
<F26> Commencement of operations.
<F27> Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F28> On January 9, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective
January 9, 1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares. For the year
ended October 31, 1995, the Financial Highlights ratios of net expenses to average net assets, ratios of net investment income to
average net assets, total return and the per share income from investment operations and distributions are presented on a basis
whereby the Fund's net investment income, net expenses, net realized and unrealized gains (losses) and distributions for the period
November 1, 1994 through January 9, 1995, were allocated to each class of shares based upon the relative net assets of each class of
shares as of the close of business on January 9, 1995, and the results thereof combined with the results of operations and
distributions for each applicable class for the period January 10, 1995 through October 31, 1995.
<F29> For the Tax-Exempt Intermediate Bond Fund, substantially all investment income is exempt from Federal income tax.
<F30> Not annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds for the period
ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds, and for the period ended April 30,
1996, for all Funds.
<F31> The total return calculation does not reflect the 2% front end sales charge for Series A.
<F32> Annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds and for the period
ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds, and for the period ended April 30,
1996, for all Funds.
<F33> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares
issued.
See notes to the financial statements.
</TABLE>
SHORT-TERM BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
LONG-TERM INVESTMENTS 98.2%
ASSET-BACKED SECURITIES 22.0%
AUTO LOAN RECEIVABLES 3.7%
Banc One Auto Trust, Series 1995-A, Class A3,
$1,000 6.85%, 11/15/97 $ 1,005
Capital Auto Receivables Asset Trust, Series 1993-3,
3,620 Asset Backed Certificates, 4.60%, 10/15/98 3,551
Chase Manhattan Grantor Trust, Pass-Thru
2,091 Certificates, Series 1995-B, Class A, 5.90%, 11/15/01 2,086
ML Asset Backed Corporation, Series 1992-1,
34 Class A2, 5.50%, 5/15/98 34
USAA Auto Loan Grantor Trust, Series 1994-1,
567 Class A, 5.00%, 11/15/99 563
--------
7,239
--------
CREDIT CARD RECEIVABLES 18.3%
Banc One Credit Card Master Trust:
2,500 1994-B, Class A, 7.55%, 12/15/99 2,555
3,500 1994-C, Class A, 7.80%, 12/15/00 3,613
Capital One Master Trust:
3,000 Series 1993-1, Class A, 5.20%, 2/15/02 2,925
4,750 Series 1994-4, Class A, 6.80%, 12/15/00 4,800
Discover Card Master Trust:
2,670 Series 1992-B, Class A, 6.80%, 6/16/00 2,692
2,000 Series 1993-B, Class A, 6.75%, 2/15/00 2,005
Discover Card Master Trust I, Series 1993-2,
3,350 Class A, 5.40%, 11/16/01 3,277
First Deposit Master Trust, Series 1995-2, Class A,
4,000 6.05%, 8/15/02 3,983
MBNA Master Credit Card Trust:
1,000 Series 1992-1, Class A, 7.25%, 6/15/99 1,012
4,190 Series 1992-2, Class A, 6.20%, 8/15/99 4,193
Sears Credit Account Master Trust, Series 1994-2,
5,245 Class A, 7.25%, 7/16/01 5,331
--------
36,386
--------
CORPORATE BONDS 27.7%
Atlantic Richfield Notes,
4,169 10.25%, 7/02/00 4,420
Bear Stearns Company Senior Notes,
1,000 6.75%, 8/15/00 995
Beneficial Corp. Medium Term Notes,
1,090 9.80%, 5/12/97 1,131
BP America, Inc. Debentures,
1,000 8.875%, 12/01/97 1,039
BP America, Inc. Debentures,
2,000 10.00%, 7/01/18 2,221
Chrysler Corp. Debentures,
2,150 10.95%, 8/01/17 2,381
Chrysler Corp. Notes,
2,498 10.40%, 8/01/99 2,622
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
CORPORATE BONDS 27.7% (CONT.)
Deseret Generation & Transmission Coop
$1,000 Debentures, 10.11%, 12/15/17 $ 1,100
Ford Motor Credit Co. Debentures:
500 8.875%, 6/15/99 531
750 8.375%, 1/15/00 787
General Motors Acceptance Corp. Notes,
3,600 7.75%, 1/15/99 3,703
GTE Corp. Debentures,
4,125 10.75%, 9/15/17 4,558
Heller Financial Inc. Notes,
2,160 8.00%, 12/15/98 2,232
IBM Corp. Notes,
1,000 6.375%, 11/01/97 1,004
International Lease Finance Corp.,
900 Medium Term Notes, 6.375%, 11/01/96 902
Lehman Brothers Holdings, Inc. Debentures:
400 Zero Coupon, 5/16/96 399
3,000 8.875%, 11/01/98 3,149
1,000 9.875%, 10/15/00 1,097
Lehman Brothers Holdings, Inc. Notes,
1,255 8.375%, 2/15/99 1,305
Lehman Brothers, Inc. Senior Subordinated Notes,
202 10.00%, 5/15/99 219
MONY Funding, Inc. Debentures:
4,245 8.25%, 10/29/96 4,282
700 8.125%, 4/07/97 711
Pacific Gas & Electric Corp. Eurodollar
1,435 Debentures, 12.00%, 1/09/00 1,484
Paine Webber Group, Inc. Medium Term Notes,
1,000 5.45%, 1/28/98 980
Salomon, Inc. Medium Term Notes,
2,000 7.87%, 12/30/96 2,023
Salomon, Inc. Senior Notes,
800 7.75%, 5/15/00 809
Smith Barney Holdings Inc. Notes,
3,150 5.625%, 11/15/98 3,089
Soyland Power Coop, Inc.,
1,750 9.63%, 9/30/11 1,881
2,500 9.70%, 9/30/17 2,712
Tennessee Gas Pipeline Co. Debentures,
1,123 9.25%, 5/15/96 1,124
Transamerica Financial Group, Inc.
200 Subordinate Debentures, 8.125%, 10/15/96 202
--------
55,092
--------
Mortgage-Backed Securities 15.1%
Citicorp Mortgage Securities, Inc. Real
Estate Mortgage Investment Conduit,
Series 1991-7, Class M,
1,013 8.75%, 5/25/21 1,019
EQCC Home Equity Loan Trust, Series 1994-3,
1,332 Class A1, 6.34%, 1/15/04 1,332
SHORT-TERM BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
MORTGAGE-Backed Securities 15.1% (cont.)
GE Home Equity Loan Asset-Backed Certificates,
$ 709 Series 1991-1, Class A, 7.20%, 9/15/11 $ 715
Green Tree Financial Corp. Pass-Thru Certificates,
675 Series 1993-4, Class A-2, 5.85%, 1/15/19 666
Household Finance Corp. Home Equity Loan
Asset-Backed Certificates:
950 Series 1991-2, Class A3, 7.25%, 8/19/06 964
4,620 Series 1992-2, Class A3, 5.25%, 10/20/07 4,588
Merrill Lynch Mortgage Investors, Inc.,
1,212 Series 1992-B, Class A4, 7.85%, 4/15/12 1,236
Morgan Stanley Mortgage Trust,
747 Series 40, Class 6, 7.00%, 1/20/97 747
Prudential-Bache CMO Trust, Series 8, Class E,
2,053 7.965%, 3/1/18 2,078
Prudential Home Mortgage Securities,
1,276 Series 1993-24, Class A1, 5.50%, 7/25/00 1,248
Resolution Trust Corp.:
98 Series 1992-MH1, Class A1, 7.00%, 4/15/97 98
1,642 Series 1992-MH2, Class A1, 7.00%, 2/15/19 1,644
Security Pacific Acceptance Corp.:
1,663 Series 1992-2, Class A2, 7.10%, 6/15/12 1,678
2,500 Series 1992-2, Class A3, 7.50%, 6/15/12 2,557
Security Pacific Home Equity Loan:
1,350 Series 1991-1, Class B, 8.85%, 5/15/98 1,401
3,466 Series 1991-2, Class B, 8.15%, 6/15/20 3,510
US Home Equity Loan Certificates:
2,170 Series 1991-2, Class A, 8.50%, 4/15/21 2,209
2,200 Series 1991-2, Class B, 9.125%, 4/15/21 2,268
--------
29,958
--------
International/Yankee (U.S. $ Denominated) 3.1%
Ford Capital BV Debentures,
2,010 9.00%, 8/15/98 2,116
Hydro-Quebec Debentures,
1,250 13.375%, 2/15/13 1,444
Ontario (Province of) Debentures,
2,250 17.00%, 11/05/11 2,516
--------
6,076
--------
Other 3.5%
California State Water Department,
2,000 Series E, 9.875%, 12/01/24 2,217
Florida Housing Finance Agency:
450 Antigua Club-A-2, 8.625%, 8/01/01 480
425 Brittany Apartments-C-2, 8.625%, 8/01/02 456
550 Maitland Club-B-2, 8.625%, 8/01/01 587
St. Louis, Missouri Airport Revenue Notes, Series 1993A,
3,250 5.50%, 7/01/98 3,201
--------
6,941
--------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
U.S. Government Agency and
Agency-Backed Issues 13.1%
Federal Home Loan Mortgage Corporation (FHLMC)
Participation Certificates:
$ 108 7.00%, 12/01/01 $ 108
192 7.75%, 7/01/09 195
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduits (REMIC):
1,959 Series 1269, Class E, 7.00%, 5/15/97 186
1,959 Series 1153, Class F, 7.75%, 10/15/98 1,982
1,000 Series 1243, Class K, 7.50%, 8/15/01 1,021
1,500 Series 1697, Class PN, 5.60%, 6/15/02 1,486
1,700 Series 1733, Class PB, 6.45%, 1/15/11 1,701
Federal National Mortgage Association (FNMA) Real
Estate Mortgage Investment Conduits (REMIC):
1,338 Series 1993-36, Class E, 7.50%, 3/25/98 1,352
1,443 Series 1993-155, Class K, 5.85%, 7/25/98 1,435
1,250 Series 1992-140, Class HB, 6.50%, 10/25/99 1,246
4,640 Series 1992-G54, Class VB, 7.50%, 12/25/99 4,724
2,741 Series X-19A, Class A, 6.50%, 10/25/00 2,726
2,000 Series 1993-G06, Class K, 7.00%, 11/25/01 1,983
2,100 Series 1992-G40, Class D, 7.00%, 3/25/03 2,104
1,000 Series 1993-173, Class D, 5.25%, 3/25/03 977
Federal National Mortgage Association (FNMA)
Stripped Mortgage-Backed Securities, Series
938 1989-75, Class C, 0.0%, 9/25/18 886
Government Trust Certificates, Series 2D,
1,824 9.25%, 11/15/96 1,837
--------
25,949
--------
U.S. Treasury Obligations 13.7%
U.S. Treasury Notes:
1,300 8.875%, 2/15/99 1,387
4,600 6.75%, 5/31/99 4,662
19,750 8.50%, 2/15/00 21,151
--------
27,200
--------
Total Long-Term Investments (Cost $196,833) 194,841
--------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 1.3%
Investment Companies 1.3%
10 Financial Square Prime Obligation Fund 10
2,495 Short-Term Investments Co. Liquid Assets Portfolio 2,495
--------
Total Short-Term Investments (Cost $2,505) 2,505
--------
Total Investments 99.5% (Cost $199,338) 197,346
--------
Other Assets, less Liabilities 0.5% 988
--------
Total Net Assets $198,334
========
See notes to the financial statements.
INTERMEDIATE BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
LONG-TERM INVESTMENTS 95.5%
Asset-Backed Securities 24.6%
Auto Loan Receivables 5.0%
Ford Credit Grantor Trust, Series 1994-A,
$ 727 Class A, 6.35%, 5/15/99 $ 730
General Motors Acceptance Corp. Grantor
1,654 Trust, Series 1995-A, Class A, 7.15%, 3/15/00 1,673
Keycorp Auto Grantor Trust, Series 1995-A,
1,937 Class A, 5.80%, 7/15/00 1,934
Premier Auto Trust:
1,036 Series 1993-5, Class A2, 4.22%, 3/02/99 1,016
2,318 Series 1994-1, Class A3, 4.75%, 2/02/00 2,289
576 Series 1994-2, Class A4, 6.00%, 5/02/00 575
--------
8,217
--------
Credit Card Receivables 19.6%
AT&T Universal Card MasterTrust, Series 1995-2,
1,000 Class A, 5.95%, 10/17/02 975
American Express Master Trust, Series 1994-2,
2,000 Class A, 7.60%, 8/15/02 2,064
Banc One Credit Card Master Trust, Series 1995-B,
3,700 Class A, 6.30%, 10/15/02 3,659
Discover Card Master Trust I:
1,000 Series 1993-2, Class A, 5.40%, 11/16/01 978
500 Series 1993-3, Class A, 6.20%, 5/16/06 476
First Chicago Master Trust II, Series 1994-L,
3,675 Class A, 7.15%, 4/15/01 3,743
Household Affinity Credit Card Master Trust I,
2,900 Series 1993-2, Class A, 5.60%, 5/15/02 2,803
MBNA Master Credit Card Trust:
1,200 Series 1993-3, Class A, 5.40%, 9/15/00 1,173
500 Series 1995-D, Class A, 6.05%, 11/15/02 491
745 Series 1995-F, Class A, 6.60%, 1/15/03 746
NationsBank Credit Card Master Trust,
2,500 Series 1995-1, Class A, 6.45%, 4/15/03 2,488
Private Label Credit Card Master Trust II,
2,000 Series 1994-2, Class A, 7.80%, 9/20/03 2,064
Sears Credit Account Master Trust,
5,900 Series 1994-1, Class A, 7.00%, 1/15/04 6,000
Standard Credit Card Master Trust,
4,800 Series 1993-3, Class A, 5.50%, 2/7/00 4,691
--------
32,351
--------
Corporate Bonds 37.1%
American General Finance Corp. Notes,
1,000 8.00%, 2/15/00 1,040
BankAmerica Corp. Subordinated Notes,
1,500 10.00%, 2/01/03 1,725
Bankers Trust - NY, Subordinated Debentures,
1,000 9.50%, 6/14/00 1,089
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
CORPORATE Bonds 37.1% (cont.)
Bear Stearns Company Senior Notes:
$2,498 7.625%, 9/15/99 $2,564
1,312 6.75%, 8/15/00 1,305
2,000 9.375%, 6/01/01 2,198
Caterpillar, Inc. Debentures,
1,150 9.75%, 6/01/19 1,282
Chase Manhattan Corp. Debentures,
1,015 10.00%, 6/15/99 1,107
Chase Manhatten Corp. Subordinated Notes,
1,000 8.65%, 2/13/99 1,052
Chemical Banking Corp. Subordinated Capital
1,175 Notes, 9.75%, 6/15/99 1,275
Chrysler Financial Corp. Debentures:
750 13.25%, 10/15/99 898
700 12.75%, 11/01/99 824
Chrysler Corp. Notes,
1,596 10.40%, 8/01/99 1,675
Consolidated Edison Co. Debentures,
100 7.60%, 1/15/00 102
Deseret Generation & Transmission Coop
750 Debentures, 9.375%, 1/02/11 795
Fleet Mortage Group Notes,
2,280 6.50%, 6/15/00 2,248
Ford Motor Credit Co. Notes,
2,390 5.625%, 12/15/98 2,337
General Motors Acceptance Corp. Debentures,
1,000 8.625%, 6/15/99 1,054
General Motors Acceptance Corp. Notes,
1,050 8.00%, 10/01/99 1,087
General Motors Corp. Debentures,
1,000 9.625%, 12/01/00 1,103
Goldman Sachs Group Notes,
5,000 6.25%, 2/01/03 4,708
Heller Financial, Inc. Notes,
1,300 9.375%, 3/15/98 1,365
Household Finance Co. Subordinated Debentures,
2,468 9.55%, 4/01/00 2,683
International Lease Finance Corp. Medium Term Notes:
500 8.25%, 10/19/98 520
2,000 5.92%, 1/15/98 1,989
Lehman Brothers Holdings, Inc. Notes:
1,500 8.375%, 2/15/99 1,560
2,000 6.90%, 7/15/99 1,998
Lehman Brothers, Inc. Senior
1,715 Subordinated Notes, 10.00%, 5/15/99 1,863
Midland America Capital Corp. Debentures,
1,540 12.75%, 11/15/03 1,752
Midland Bank PLC Subordinated Notes,
1,700 6.95%, 3/15/11 1,592
INTERMEDIATE BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
CORPORATE BONDS 37.1% (cont.)
MONY Funding, Inc. Debentures:
$2,130 8.25%, 10/29/96 $ 2,149
1,325 8.125%, 4/07/97 1,347
Paine Webber Group, Inc. Subordinated
1,000 Medium Term Notes, 7.70%, 2/11/00 1,017
Salomon, Inc. Medium Term Notes,
1,000 7.87%, 12/30/96 1,011
Salomon, Inc. Senior Notes,
1,450 7.75%, 5/15/00 1,466
SCE Capital Corp. Notes,
1,000 7.375%, 12/15/03 1,021
Charles Schwab Corp. Medium Term Notes,
650 6.06%, 10/02/00 624
Security Pacific Corp. Subordinated Notes,
2,147 9.75%, 5/15/99 2,311
Smith Barney Holdings, Inc. Notes:
2,250 5.50%, 1/15/99 2,194
1,000 6.625%, 6/01/00 991
Tennessee Gas Pipeline Co. Debentures,
600 6.00%, 12/15/11 504
--------
61,425
--------
Mortgage-Backed Securities 2.9%
Security Pacific Acceptance Corp., Series 1991-2,
804 Class B, 8.55%, 9/15/11 827
Security Pacific Home Equity Loan:
1,000 Series 1991-1, Class B, 8.85%, 5/15/98 1,038
2,944 Series 1991-2, Class B, 8.15%, 6/15/20 2,981
--------
4,846
--------
International/Yankee (U.S. $ Denominated) 2.7%
Bank Nova Scotia Subordinated Debentures,
700 9.00%, 10/01/99 746
Ford Capital BV Debentures,
2,258 10.125%, 11/15/00 2,531
Nova Scotia (Province of) Debentures,
1,000 11.50%, 5/15/13 1,130
--------
4,407
--------
Taxable Municipal 1.0%
St. Louis, Missouri Airport Revenue Notes,
1,800 5.30%, 7/01/98 1,766
--------
U.S. Government Agency and
Agency-Backed Issues 9.6%
Federal Home Loan Mortgage Corporation (FHLMC)
Government National Mortgage Association (GNMA)
Real Estate Mortgage Investment Conduit (REMIC)
Pass-Thru Certificates, Series 8, Class VB,
1,000 7.00%, 1/25/04 1,000
--------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
U.S. GOVERNMENT Agency and
Agency-Backed Issues 9.6% (cont.)
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC)
Pass-Thru Certificates:
$ 500 Series 1339, Class B, 8.00%, 7/15/22 $ 512
1,000 Series 1289, Class PR, 7.50%, 2/15/03 1,020
1,298 Series 1456, Class LA, 7.50%, 5/15/03 1,323
Federal National Mortgage Association (FNMA)
1,200 Medium Term Notes, 8.25%, 5/16/05 1,201
Federal National Mortgage Association (FNMA)
3,000 Pass-Thru Certificates, Pool #160173, 10/01/98 3,019
Federal National Mortgage Association (FNMA)
Guaranteed Real Estate Mortgage Investment
Conduit (REMIC) Pass-Thru Certificates,
800 Series 1993-23, Class PU, 7.50%, 1/25/00 816
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC)
Pass-Thru Certificates:
500 Series 1992-73, Class L, 7.50%, 1/25/01 509
3,000 Series 1993-37, Class B, 7.00%, 7/25/02 3,002
U.S. Department of Veterans Affairs Mortgage
Trust REMIC:
3,000 Series 1993-1, Class G, 7.00%, 2/15/00 3,043
500 Series 1992-2, Class J, 7.00%, 3/15/01 506
--------
15,951
--------
U.S. Treasury Obligations 17.6%
U.S. Treasury Bonds:
2,500 10.75%, 2/15/03 3,062
16,150 11.875%, 11/15/03 21,101
3,850 10.75%, 8/15/05 4,905
--------
29,068
--------
Total Long-Term Investments (Cost $158,959) 158,031
--------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 2.7%
Investment Companies 2.7%
10 Financial Square Prime Obligation Fund 10
4,407 Short-Term Investments Co. Liquid Assets Portfolio 4,407
--------
Total Short-Term Investments (Cost $4,417) 4,417
--------
Total Investments (Cost $163,376) 98.2% 162,448
--------
Other Assets, less Liabilities 1.8% 2,933
--------
TOTAL NET ASSETS 100.0% $165,381
========
See notes to the financial statements.
TAX-EXEMPT INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
GENERAL OBLIGATION 7.1%
Racine, Wisconsin Unified School District,
$ 150 4.80%, 4/01/01 $ 151
Rocklin, California Unified School District,
1,235 6.70%, 9/01/04 1,348
Washington State:
1,000 6.30%, 9/01/02 1,076
100 6.75%, 10/01/01 107
--------
Total General Obligation (Cost $2,704) 2,682
--------
REVENUE BONDS 8.1%
Housing 5.5%
Saint Charles, Illinois, Industrial Development -
Covington Ct Project, Mandatory Put
980 9/01/98, 5.50%, 12/01/09 1,000
South Dakota Housing Development Authority -
1,105 Homeownership Mortgage, 4.85%, 5/01/01 1,095
--------
Other 0.5%
Georgia State Municipal Electric Authority,
200 4.50%, 1/01/00 198
--------
University 0.9%
New England Education Student Loan Marketing
310 Corporation, 5.80%, 3/01/02 319
--------
Water & Sewer 1.2%
Vancouver, Washington Water and Sewer Revenue,
455 5.10%, 5/01/96 455
--------
Total Revenue Bonds (Cost $3,067) 3,067
--------
PREREFUNDED AND ESCROWED
TO MATURITY 73.0%
Alaska State Housing Finance Corporation,
1,465 6.375%, 12/01/12, Prerefunded 12/01/02 1,585
Birmingham, Alabama Waterworks And Sewer,
550 7.20%, 1/01/19, Prerefunded 1/01/00 606
Central Lake County, Illinois Joint Action,
720 7.00%, 5/01/19, Prerefunded 5/01/00 793
Chicago, Illinois Motor Fuel Tax Revenue,
1,000 7.05%, 1/01/07, Prerefunded 1/01/01 1,111
Chicago Illinois Public Building, Community
College District No. 508-B, Escrowed to Maturity,
1,000 7.90%, 1/01/98 1,045
Clark County, Nevada School District,
345 7.00%, 6/01/09, Prerefunded 6/01/01 382
Convention Center Authority - Rhode Island
1,000 Revenue, 6.65%, 5/15/12, Prerefunded 5/15/01 1,100
Du Page, Illinois Community Water Revenue Bond,
1,000 6.88%, 5/01/14, Prerefunded 5/01/97 1,049
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
PREREFUNDED AND ESCROWED
TO MATURITY 73.0% (cont.)
Farmington, New Mexico Power Revenue Bonds,
$ 575 9.875%, 1/01/13, Prerefunded 7/01/05 $ 768
Fruita, Colorado, Escrowed to Maturity:
500 9.25%, 10/01/01 573
500 9.25%, 4/01/03 611
Georgia Municipal Electric Authority Power Revenue,
1,000 8.125%, 1/01/17, Crossover Refunded 7/01/05 1,072
Illinois Educational Facilities Authority Chicago
College Of Osteopathic Medicine, Escrowed
590 To Maturity, 8.75%, 7/01/99 643
Illinois Educational Facilities Authority - Loyola
2,355 University, 7.125%, 7/01/21, Prerefunded 7/01/01 2,645
Illinois Educational Facilities Authority -
Swedish-American Hospital, 7.40%, 4/01/20,
1,035 Prerefunded 4/01/00 1,153
Kenosha, Wisconsin Unified School District Promissary
500 Notes, Escrowed to Maturity, 5.40%, 4/01/97 506
Maricopa County, Arizona School District No. 1, Phoenix
1,000 Elementary, 6.60%, 7/01/03, Prerefunded 7/01/01 1,092
Maricopa County, Arizona School District No. 11, Peoria
1,000 University, 7.00%, 7/01/05, Prerefunded 7/01/01 1,102
Metropolitan Nashville Airport, 7.75%, 7/01/07,
500 Prerefunded 7/01/01 576
Michigan State Hospital Financial Authority
Sisters Of Mercy Health Corp., 7.50%,
870 2/15/18, Prerefunded 2/15/01 985
Nevada State,
1,300 6.20%, 5/01/04, Prerefunded 5/01/01 1,393
New Jersey State Turnpike Authority Revenue
50 Refunding, Escrowed to Maturity, 6.75% 1/01/09 53
Oklahoma State Industrial Authority Revenue
St. Anthony Hospital, Escrowed to Maturity,
1,175 6.125%, 6/01/03 1,235
Philadelphia, Pennsylvania, Regional Port Authority,
Lease Revenue Bonds, 7.15%, 8/01/20,
1,000 Prerefunded 8/01/00 1,095
Snohomish County, Washington - Public Hospital,
Stevens Memorial Hospital, 6.85%, 12/01/11,
1,000 Prerefunded 12/01/01 1,102
Tucson, Arizona Street & Highway User Revenue Bonds,
1,000 Escrowed to Maturity, 9.25%, 7/01/02 1,237
University of Illinois, Escrowed to Maturity,
1,005 6.10%, 10/01/03 1,087
Wausau, Wisconsin School District,
1,000 6.50%, 4/01/10, Prerefunded 4/01/02 1,084
Williston, North Dakota, Escrowed To Maturity,
80 6.00%, 6/01/98 82
--------
Total Prerefunded and Escrowed to Maturity
(Cost $27,532) 27,765
--------
TAX-EXEMPT INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
INSURED BONDS 8.4%
Education 0.6%
Merrillville, Indiana, Multi-School Building
$ 200 Corporation, 6.375%, 7/01/03 $ 216
--------
General Obligation 4.8%
Camden, New Jersey,
900 6.15%, 2/15/00 948
Chicago, Illinois,
675 11.60%, 1/01/01 867
--------
Public Facilities & Improvements 2.7%
Illinois State Certificates of Participation,
1,000 6.00%, 7/01/06 1,050
--------
Water and Sewer 0.3%
100 Pima County, Arizona, Sewer, 6.20%, 7/01/00 106
--------
Total Insured Municipal Bonds (Cost $3,197) 3,187
--------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
INVESTMENT COMPANIES 1.9%
10 Financial Square Tax-Exempt Money Market $ 10
733 Tax Free Investment Trusts 733
--------
Total Investment Companies (Cost $743) 743
--------
Total Investments 98.5% (Cost $37,243) 37,444
--------
Other Assets, less Liabilities 1.5% 570
--------
TOTAL NET ASSETS 100.0% $38,014
========
See notes to the financial statements.
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
LONG-TERM INVESTMENTS 96.3%
Asset-Backed Securities 20.4%
Auto Loan Receivables 3.4%
Capital Auto Receivables Asset Trust,
$ 334 Series 1993-2, Class A4, 4.70%, 5/15/97 $ 334
General Motors Acceptance Corp. Grantor Trust,
2,205 Series 1995-A, Class A, 7.15%, 3/15/00 2,230
Premier Auto Trust:
667 Series 1993-3, Class A3, 4.90%, 12/15/98 663
1,176 Series 1993-5, Class A2, 4.22%, 3/02/99 1,153
Premier Auto Trust, Series 1993-6,
905 Class B, 4.875%, 11/02/99 893
Ford Credit Auto Loan Master Trust, Series 1995-1,
7,000 Class A, 6.50%, 8/15/02 6,955
--------
12,228
--------
Credit Card Receivables 17.0%
AT&T Universal Master Card Trust, Series 1995-2,
1,810 Class A, 5.95%, 10/17/02 1,765
Bank One Credit Card Master Trust, Series 1995-B,
8,000 Class A, 6.30%, 10/15/02 7,912
Chrysler Financial Corp. Grantor Trust, Series 17,
395 Class A, 6.25%, 3/15/02 394
Discover Card Master Trust I, Series 1993-2,
14,600 Class A, 5.40%, 11/16/01 14,281
First Chicago Master Trust II, Series 1994-L,
8,500 Class A, 7.15%, 4/15/01 8,658
Household Affinity Credit Card Master Trust I,
3,750 Series 1993-2, Class A, 5.60%, 5/15/02 3,624
MBNA Master Credit Card Trust, Series 1995-F,
2,525 Class A, 6.60%, 1/15/03 2,527
Private Label Credit Card Master Trust II,
2,600 Series 1994-2, Class A, 7.80%, 9/20/03 2,683
Sears Credit Account Master Trust:
11,750 Series 1994-1, Class A, 7.00%, 1/15/04 11,948
2,200 Series 1995-3, Class A, 7.00%, 10/15/04 2,236
Standard Credit Card Master Trust, Series 1993-3,
2,445 Class A, 5.50%, 2/07/00 2,389
NationsBank Credit Card Master Trust,
3,130 Series 1995-1, Class A, 6.45%, 4/15/03 3,115
--------
61,532
--------
Corporate Bonds 37.5%
Barclays North America Capital Corp. Debentures,
1,500 9.75%, 5/15/21 1,678
Barnett Banks Subordinated Notes,
869 8.50%, 3/01/99 909
BankAmerica Corp. Subordinated Notes,
3,360 10.00%, 2/01/03 3,863
Bear Stearns Co. Notes,
63 6.50%, 6/15/00 62
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
Corporate Bonds 37.5% (cont.)
Bear Stearns Co. Senior Notes:
$ 3,026 7.625%, 9/15/99 $3,106
500 6.75%, 8/15/00 498
Burlington Northern Railroad Company
500 Equipment Trust Certificates, 11.85%, 1/15/99 564
Citicorp Debentures,
2,541 9.75%, 8/01/99 2,760
Citicorp Subordinated Notes,
366 9.00%, 4/15/99 389
2,265 10.75%, 12/15/15 2,349
Chase Manhattan Corp. Debentures,
5,458 10.00%, 6/15/99 5,955
Chemical Banking Corp. Subordinated Capital
4,081 Notes, 9.75%, 6/15/99 4,429
Chase Manhattan Corp. Subordinated Notes,
525 8.65%, 2/13/99 553
Continental Bank Subordinated Notes,
683 12.50%, 4/01/01 836
Chrysler Financial Corp. Debentures:
7,563 13.25%, 10/15/99 9,052
1,850 12.75%, 11/01/99 2,177
Deseret Generation & Transmission Coop
2,275 Debentures, 9.375%, 1/02/11 2,411
Federal Express Corp. Debentures,
2,163 9.625%, 10/15/19 2,388
First Chicago Subordinated Notes:
3,789 9.00%, 6/15/99 4,041
560 9.875%, 8/15/00 623
First National Bank Chicago Pass-Thru Certificates,
1,100 8.08%, 1/05/18 1,147
First National Bank Omaha Subordinated Notes,
3,000 7.32%, 12/01/10 2,827
First USA Bank Notes,
500 5.75%, 1/15/99 487
Ford Motor Co. Notes,
700 7.50%, 11/15/99 716
Ford Motor Credit Co. Medium Term Notes:
5,000 8.45%, 12/30/98 5,224
1,377 8.875%, 6/15/99 1,463
300 8.375%, 1/15/00 315
General Motors Acceptance Corp. Medium Term Notes:
1,000 7.50%, 7/22/99 1,023
1,250 8.00%, 10/01/99 1,294
Georgia Pacific Corp. Debentures:
1,011 9.50%, 12/01/11 1,150
1,500 9.50%, 2/15/18 1,558
Goldman Sachs Group Notes,
10,000 6.25%, 2/01/03 9,417
Household Finance Co. Senior Subordinated Notes,
2,625 9.625%, 7/15/00 2,871
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
CORPORATE BONDS 37.5% (cont.)
Heller Financial, Inc. Notes,
$9,045 9.375%, 3/15/98 $ 9,501
International Lease Finance Corp. Medium Term
3,500 Notes, 9.82%, 12/14/98 3,773
Lehman Brothers Holdings, Inc. Debentures,
2,495 8.875%, 11/01/98 2,619
Lehman Brothers Holdings, Inc. Notes:
1,700 6.90%, 7/15/99 1,698
250 8.875%, 2/15/00 265
Lehman Brothers, Inc. Senior Subordinated Notes,
6,740 10.00%, 5/15/99 7,323
Midland America Capital Corp. Debentures,
3,479 12.75%, 11/15/03 3,957
MONY Funding, Inc. Debentures,
5,050 8.125%, 4/07/97 5,133
NCNB Corp. Subordinated Notes,
2,850 10.20%, 7/15/15 3,518
Pacific Gas & Electric Corp. Eurodollar Debentures,
990 12.00%, 1/09/00 1,024
SCE Capital Corp. Notes,
1,100 7.375%, 12/15/03 1,124
Charles Schwab Corp. Medium Term Notes:
2,000 5.84%, 9/30/99 1,934
2,250 5.90%, 10/01/99 2,180
Security Pacific Corp. Subordinated Notes,
301 9.75%, 5/15/99 324
Tennessee Gas Pipeline Co. Debentures,
3,993 6.00%, 12/15/11 3,357
Salomon, Inc. Medium Term Notes,
600 7.87%, 12/30/96 607
Salomon, Inc. Senior Notes,
2,850 7.75%, 5/15/00 2,881
Union Camp Corp. Debentures,
850 10.00%, 5/01/19 959
Unicom Corp. 1st Mortgage Bonds,
3,500 9.50%, 5/01/16 3,644
Westvaco Corp. Debentures,
1,200 10.125%, 6/01/19 1,361
Wal-Mart Stores, Inc. Debentures,
600 7.25%, 6/01/13 577
--------
135,894
--------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
MORTGAGE-BACKED SECURITIES 1.5%
Green Tree Financial Corp.,
$2,116 Series 1993-4, Class A1, 4.85%, 1/15/19 $ 2,100
Household Finance Corp., Home Equity Loan
1,288 Series 1993-2, Class A3, 4.65%, 12/20/08 1,270
Prudential Home Mortgage Securities,
2,319 Series 1993-24, Class A2, 5.50%, 7/25/00 2,116
--------
5,486
--------
International/Yankee (U.S. $ Denominated) 4.1%
British Telecommunications Finance
2,761 Debentures, 9.625%, 2/15/19 3,074
Hydro-Quebec Debentures:
750 9.75%, 1/15/18 831
1,000 11.75%, 2/01/12 1,364
Italy (Republic of) Debentures,
2,000 6.875%, 9/27/23 1,750
National Westminster Bank Debentures,
1,000 9.375%, 11/15/03 1,129
Norsk Hydro A/S Debentures,
2,900 9.00%, 4/15/12 3,228
Quebec (Province of) Debentures,
1,800 11.00%, 6/15/15 2,101
Sweden (Kingdom of) Debentures,
1,100 11.125%, 6/01/15 1,505
--------
14,982
--------
Taxable Municipal 0.6%
New Jersey Economic Development Authority
840 Revenue Bonds, 7.75%, 6/01/02 882
Orange County California Redevelopment
1,295 Agency Tax Allocation Bond, 6.50%, 10/01/03 1,225
--------
2,107
--------
See notes to the financial statements.
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
U.S. GOVERNMENT AGENCY and
AGENCY-BACKED ISSUES 2.1%
Federal Home Loan Bank (FHLB) Structured Notes,
$1,500 5.03%, 7/28/00 $1,476
Federal Home Loan Mortgage Corp. (FHLMC) Real
Estate Mortgage Investment Conduit (REMIC) Pass-Thru
500 Certificates, Series 1169, Class D, 7.00%, 5/15/21 498
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC),
28 Series 1259, Class IC, 1007.049%, 10/15/05 342
Federal Home Loan Mortgage Corporation (FHLMC)
155 Participation Certificates, Pool #140151, 7.50%, 4/01/07 155
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC)
Pass-Through Certificates:
484 Series 1989-90, Class E, 8.70%, 12/25/19 501
358 Series 1990-72, Class A, 9.00%, 7/25/20 369
538 Series 1990-72, Class B, 9.00%, 7/25/20 568
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC):
9 Series 1992-29, Class K, 977.9167%, 11/25/00 167
23 Series 1992-145, Class N, 1,010.064%, 1/25/06 690
1,300 Series 1989-39, Class C, 0.00%, 6/25/17 1,221
Federal National Mortgage Association (FNMA)
Pass-Thru Certificates,
604 Pool #317, 7.50%, 8/01/07 606
183 Pool #1464, 7.75%, 6/01/08 184
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC)
Pass-Thru Certificates: Series 1993-87, Class KD,
650 6.00%, 6/25/03 625
--------
7,402
--------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
U.S. TREASURY Obligations 30.1%
U.S. Treasury Bonds:
$ 6,100 10.75%, 2/15/03 $ 7,471
5,150 11.875%, 11/15/03 6,729
1,550 10.75%, 8/15/05 1,975
73,675 9.25%, 2/15/16 90,735
2,100 U.S. Treasury Notes,
6.75%, 5/31/99 2,128
--------
109,038
--------
Total Long-Term Investments (Cost $346,960) 348,669
--------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 2.2%
Investment Companies 2.2%
11 Financial Square Prime Obligation Fund 11
8,159 Short-Term Investments Co. - Liquid Assets Portfolio 8,159
--------
Total Short-Term Investments (Cost $8,170) 8,170
--------
Total Investments 98.5% (Cost $355,130) 356,839
--------
Other Assets, less Liabilities 1.5% 5,308
--------
TOTAL NET ASSETS 100.0% $362,147
========
See notes to the financial statements.
SHORT-TERM BOND MARKET FUND
INTERMEDIATE BOND MARKET FUND
TAX-EXEMPT INTERMEDIATE BOND FUND
BOND IMMDEX/TM FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
1.ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988,
as a Wisconsin Corporation and is registered as an open-end management
investment company under the Investment Company Act of 1940. The Short-Term Bond
Market, Inter mediate Bond Market, Tax-Exempt Intermediate Bond and Bond
IMMDEX/TM Funds (the "Funds") are separate, diversified investment portfolios
of the Company. The Short-Term Bond Market Fund and Bond IMMDEX/TM Fund
commenced operations on December 29, 1989; the Intermediate Bond Market Fund
commenced operations on January 5, 1993; and the Tax-Exempt Inter mediate Bond
Fund commenced operations on February 8, 1993. The objective of the Short-Term
Bond Market Fund is to seek to provide an annual rate of total return, before
Fund expenses, comparable to the annual rate of total return of the Lehman
Brothers 1-3 year Government/Corporate Bond Index. The objective of the
Intermediate Bond Market Fund is to seek to provide an annual rate of total
return, before Fund expenses, comparable to the annual rate of total return of
the Lehman Brothers Intermediate Government/Corporate Bond Index. The objective
of the Tax-Exempt Intermediate Bond Fund is to seek to provide current income
that is substantially exempt from federal income tax and emphasize total return
with relatively low volatility of principal. The objective of the Bond IMMDEX/TM
Fund is to seek to provide an annual rate of total return, before Fund expenses,
comparable to the annual rate of total return of the Lehman Brothers
Government/Corporate Bond Index.
The costs, in thousands, incurred in connection with the organization,
initial registration and public offering of shares aggregating $44, $14, $11 and
$46 for the Short-Term Bond Market, Inter mediate Bond Market, Tax-Exempt
Intermediate Bond and Bond IMMDEX/TM Funds, respectively, have been paid by the
Funds. These costs are being amortized over the period of benefit, but not to
exceed sixty months from each Fund's commencement of operations.
The Company has issued two classes of Fund shares in each of the Funds:
Series A and Series Institutional. The Series A shares are subject to a 0.25%
shareowner service fee and to an initial sales charge imposed at the time of
purchase, in accordance with the Funds' prospectus. The maximum sales charge is
2% of the offering price or 2.08% of the net asset value. Each class of shares
for each Fund has identical rights and privileges except with respect to
shareowner organization fees paid by Series A shares, voting rights on matters
affecting a single class of shares and the exchange privileges of each class of
shares.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a)Investment Valuation - Securities which are traded on a recognized exchange
are valued at the last sale price on the securities exchange on which such
securities are primarily traded or at the last sale price on the national
securities market. Exchange-traded securities for which there were no
transactions are valued at the current bid prices. Securities traded on only
over-the-counter markets are valued on the basis of closing over-the-counter bid
prices. Instruments with a remaining maturity of 60 days or less are valued on
an amortized cost basis which approximates market value. Securities for which
quotations are not readily available and other assets are valued at fair value
as deter mined by the investment adviser under the supervision of the Board of
Directors.
b)Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied to date with the provisions of the Internal
Revenue Code available to regulated investment companies and intend to continue
to so comply in future years.
c)Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, administration and
certain shareowner service fees. Expenses that are not directly attributable to
a portfolio are typically allocated among the Company's portfolios in proportion
to their respective net assets, number of shareowner accounts or net sales,
where applicable. Net investment income other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative net asset value of outstanding shares (or the
value of dividend-eligible shares, as appropriate) of each class of shares at
the beginning of the day (after adjusting for the current day's capital share
activity of the respective class).
d)Distributions to Shareowners - Dividends from net investment income of the
Short-Term Bond Market, Intermediate Bond Market, Tax-Exempt Inter mediate Bond
and Bond IMMDEX/TM Funds are declared and paid monthly. Distributions of net
realized capital gains, if any, will be declared at least annually.
e)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.
f)Other - Investment and shareowner transactions are recorded no later than the
first business day after the trade date. The Funds determine the gain or loss
realized from investment transactions by comparing the original cost of the
security lot sold with the net sale proceeds. Interest income is recognized on
an accrual basis. Discounts and premiums on bonds are amortized over the life of
the respective bond. Generally accepted accounting principles require that
permanent financial reporting and tax differences be reclassified to capital
stock.
3.INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the period ended April 30, 1996, were
as follows:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
---------- ---------- ---------- ----------
Purchases:
U.S. Government $30,271 $25,777 - $ 27,326
Other 86,982 71,172 $8,980 111,486
Sales:
U.S. Government 16,869 51,794 - 20,356
Other 43,029 20,263 4,505 58,046
At April 30, 1996, gross unrealized appreciation and depreciation of investments
for federal income tax purposes, in thousands, were as follows:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
---------- ---------- ---------- ----------
Appreciation $ 620 $1,466 $369 $7,471
(Depreciation) (2,612) (2,395) (169) (5,818)
-------- -------- -------- --------
Net unrealized
appreciation
(depreciation)on
investments $(1,992) $ (929) $200 $1,653
======== ======== ======== ========
At April 30, 1996, the cost of investments, in thousands, for federal income
tax purposes was $199,338, $163,376, $37,245 and $355,186 for the Short-Term
Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond and Bond
IMMDEX/TM Funds, respectively. At October 31, 1995, the Short-Term Bond Market,
Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds had accumulated
net realized capital loss carryovers, in thousands, of $1,248, $1,266 and $140,
respectively, expiring in 2002. The Short-Term Bond Market, Intermediate Bond
Market and Bond IMMDEX/TM Funds had accumulated net realized capital loss
carryovers, in thousands, of $189, $568 and $987, respectively, expiring in
2003. To the extent each Fund realizes future net capital gains, taxable
distributions to its respective shareowners will be offset by any unused capital
loss carryover.
4.CAPITAL SHARE TRANSACTIONS
On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995, Institutional
shareowners exchanged their Series A shares for the Funds' Institutional series
shares. Transactions in capital shares for the Funds, in thousands, were as
follows:
<TABLE>
<CAPTION>
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
--------------- ---------------- --------------- -----------------
Amount Shares Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 1996:
Series A shares:
Shares sold $ 15,942 1,544 $ 3,879 377 $ 3,224 314 $ 15,605 563
Shares issued to owners in
reinvestment
of dividends 1,251 122 216 21 143 14 633 23
Shares redeemed (9,311) (903) (1,264) (123) (1,644) (160) (2,626) (95)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase $ 7,882 763 $ 2,831 275 $ 1,723 168 $ 13,612 491
======== ======== ======== ======== ======== ======== ======== ========
Series Institutional shares:
Shares sold 64,158 6,199 41,605 4,045 5,448 531 63,368 2,273
Shares issued to owners in
reinvestment
of dividends 2,787 271 2,750 269 215 21 8,177 294
Shares redeemed (17,063) (1,662) (19,304) (1,898) (4,312) (421) (24,498) (874)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase $ 49,882 4,808 $ 25,051 2,416 $ 1,351 131 $ 47,047 1,693
======== ======== ======== ======== ======== ======== ======== ========
PERIOD FROM JAN. 10, TO OCT. 31, 1995:
Series A shares:
Reclassification of previous class $113,766 11,467 $ 90,367 9,487 $28,273 2,909 $250,315 9,893
Exchange out to Series
Institutional shares (67,630) (6,818) (82,619) (8,669) (21,916) (2,255) (236,263) (9,338)
Shares sold 10,062 985 5,347 537 2,477 246 8,406 311
Shares issued to owners in
reinvestment
of dividends 1,889 186 257 25 202 20 674 24
Shares redeemed (11,995) (1,179) (2,445) (247) (1,682) (167) (2,814) (104)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase $ 46,092 4,641 $ 10,907 1,133 $ 7,354 753 $ 20,318 786
======== ======== ======== ======== ======== ======== ======== ========
Series Institutional shares:
Exchange in from Series A shares $ 67,630 6,818 $ 82,619 8,669 $ 21,916 2,255 $236,263 9,338
Shares sold 35,067 3,449 50,608 5,053 7,707 762 55,322 2,049
Shares issued to owners in
reinvestment
of dividends 3,077 302 3,251 325 328 33 12,580 467
Shares redeemed (13,589) (1,336) (14,172) (1,422) (3,554) (354) (38,641) (1,421)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase $ 92,185 9,233 $122,306 12,625 $ 26,397 2,696 $265,524 10,433
======== ======== ======== ======== ======== ======== ======== ========
PERIOD FROM NOV. 1, 1994 TO JAN. 9, 1995:
Previous Class:
Reclassification to
Series A shares $(113,766) (11,467) $ (90,367) (9,487) $(28,273) (2,909) $(250,315) (9,893)
Shares sold 2,785 279 5,535 577 6,094 629 8,531 333
Shares issued to owners in
reinvestment
of dividends 1,409 141 863 90 146 15 3,937 156
Shares redeemed (11,467) (1,153) (2,952) (308) (3,967) (410) (15,327) (600)
-------- -------- -------- -------- -------- -------- -------- --------
Net (decrease) $(121,039) (12,200) $ (86,921) (9,128) $(26,000) (2,675) $(253,174) (10,004)
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual rates presented below as
applied to each Fund's daily net assets. For the period ended April 30, 1996,
FIRMCO voluntarily waived the following fees, in thousands, by Fund:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
-------- -------- -------- --------
Annual rate 0.60% 0.50% 0.50% 0.30%
Fees waived $258 $141 $80 -
Firstar Trust Company, an affiliate of FIRMCO, serves as custodian, transfer
agent and accounting services agent for the Funds.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, calculated 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 period ended
April 30, 1996, $58, $56, $13 and $116 of administration fees, in thousands,
were voluntarily waived for the Short Term Bond Market, Intermediate Bond
Market, Tax-Exempt Intermediate Bond and Bond IMMDEX/TM Funds, respectively.
The Company entered into Servicing Agreements with certain Service
Organizations, including FIRMCO affiliates, for the Series A class of shares.
The Service Organizations are entitled to receive fees from the Funds up to the
annual rate of 0.25% of the average daily net asset value of the Series A shares
for certain support and/or distribution services to customers of the Service
Organizations who are beneficial owners of Series A shares. These services may
include assisting customers in processing purchase, exchange and redemption
requests; processing dividend and distribution payments from the Funds; and
providing information periodically to customers showing their positions in
Series A shares. Service Organization fees, in thousands, paid by the Short-Term
Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond and Bond
IMMDEX/TM Funds to FIRMCO affiliates aggregated $63, $16, $11 and $33,
respectively, for the period ended April 30, 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 porportionate share of the Company's liability for deferred fees.
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
For Account Balances and
Investor Services
1-800-228-1024
1-414-287-3808
Portico Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
NASD Ref#X96-0520-021
- -------------------------------------------------------------------------------
April 30, 1996
SEMI-ANNUAL REPORT
RETAIL CLASS
PORTICO FUNDS
SHORT-TERM BOND MARKET FUND
INTERMEDIATE BOND MARKET FUND
TAX-EXEMPT INTERMEDIATE BOND FUND
BOND IMMDEX/TM FUND
NOTICE TO INVESTORS
- - Shares of Portico Funds:
- - ARE NOT INSURED BY THE
FDIC, the US Government or any
other governmental agency;
- - are not bank deposits or obligations
of or guaranteed by Firstar Bank, its parent company or its affiliates;
- - are subject to investment risks,
including possible loss of principal; and
- - are offered by B.C. Ziegler and Company, member NASD, SIPC, and
an independent third-party distributor.
- - Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation for
such services as disclosed in the
current prospectus.
T A B L E O F C O N T E N T S
Page(s)
SHAREOWNER LETTER...................................................1-2
CONTROLLING THE ROLLER COASTER RIDE OF INTEREST RATES...............3-4
LOOKING AHEAD - THE FORECAST.........................................5
SHORT-TERM BOND MARKET FUND REVIEW..................................6-7
INTERMEDIATE BOND MARKET FUND REVIEW................................8-9
TAX-EXEMPT INTERMEDIATE BOND FUND REVIEW...........................10-11
BOND IMMDEX/TM FUND REVIEW.........................................12-13
STATEMENT OF ASSETS AND LIABILITIES..................................14
STATEMENT OF OPERATIONS..............................................15
STATEMENT OF CHANGES IN NET ASSETS...................................16
FINANCIAL HIGHLIGHTS...............................................17-19
SCHEDULE OF INVESTMENTS............................................20-28
NOTES TO THE FINANCIAL STATEMENTS..................................29-32
May 1996
DEAR SHAREOWNER:
INVESTMENT REVIEW
Bond and stock market returns diverged these past six months with the Lehman
Brothers Government/Corporate Bond Index gaining a mere .04%, while the Standard
& Poor's 500 Stock Index jumped 13.8%. Portico's fixed-income funds, which
maintain a duration "neutral" maturity strategy, posted returns which were in-
line with the performance results of each fund's respective index. Portico's
growth equity funds benefited from a shift in stock market investment trends
from "big and passive" (the S&P 500) to small and active management.
The combined assets of your Portico Fund Family today exceed $3.6 billion, a
266% increase from just five years ago. Your fund managers remain committed to
seeking above-average risk-adjusted returns over complete market cycles. The
matching of our clearly defined investment strategies and risk profiles to your
unique investment objectives allows the Portico Funds to translate investment
returns into investor returns.
MARKET OUTLOOK
Last December, we stressed the resiliency of the current five-year-old economic
expansion. The first quarter 2.8% real Gross Domestic Product (GDP) report
reinforces our 1996 outlook for continued moderate growth. On the inflation
front, we now believe a cyclical bump in monthly consumer price reports caused
by higher fuel and grain prices will bring annualized inflation in consumer
prices to 3%. With the rise in interest rates so far this year, we find real, or
inflation-adjusted rates across the maturity spectrum. While we continue to
believe interest rates will fall back to lower levels with a corresponding rise
in bond prices, we expect considerable volatility in the bond market for the
balance of 1996. This recent volatility reaffirms our fixed-income investment
policy of remaining duration neutral -- a strategy which allows us to maintain a
consistent management approach and eliminate the temptation to "zig when we
should zag."
Our estimate for a 1996 federal budget compromise was too optimistic, although
the final budget accord does decrease domestic spending for the first time in a
generation -- but at a slower rate than we expected.
Our market outlook is predicated on the following economic and investment
trends:
1. A cyclical bump in monthly consumer price index (CPI) reports bringing
ANNUALIZED INFLATION TO 3%.
2. GROWING FOREIGN INVESTMENT IN U.S. STOCKS AND BONDS. According to Federal
Reserve data, U.S. investments overseas of $184 billion from 1990 to 1995,
dwarfs aggregate foreign purchases of U.S. securities of $11 billion.
However, a stronger dollar, along with America's relatively robust economy,
favors U.S. stocks and bonds.
3. DISINFLATIONARY PRODUCTIVITY GAINS. Computer memory prices, a good example,
have dropped 50-60% since last summer allowing personal computers to do
more for less money.
4. A CONTINUATION OF THE DEMOCRATIC AND REPUBLICAN STALEMATE with neither
party gaining a clear legislative majority in the November election.
However, the line item veto, Federal Reserve Chairman Greenspan's
reappointment, and the decrease in domestic spending are each investor
friendly initiatives.
5. Continued emergence of the UNITED STATES AS THE "MARKET OF CHOICE" for an
increasingly one market world of global investors. Over the past five
years, retail sales domestically have grown 5% annually while German and
Japanese retail sales were flat.
6. SLOW TO NO CORPORATE PROFIT GROWTH. With the S&P 500 after-tax profit
margins at peak cyclical levels and return on equity at an all-time high,
we expect flat to modest big company profits in 1996.
7. CONTINUED OUTPERFORMANCE OF OUR SMALL AND ACTIVE COMMON STOCK STRATEGY
based on above-market earnings gains and improving valuations
(price/earnings ratios).
8. TREASURY BOND YIELDS RANGING FROM 6 TO 7.5% ALONG WITH ABOVE-AVERAGE
INTEREST RATE VOLATILITY. Because real, or inflation-adjusted interest
rates remain attractive, we continue to advocate our core index fixed-
income strategy as a bulwark of investor portfolios.
We appreciate your continued confidence in the Portico Family of Funds and urge
you to read the portfolio reviews that follow.
J. SCOTT HARKNESS, CFA MARY ELLEN STANEK, CFA
Chairman/Chief President
Investment Officer
Firstar Investment Research & Management Company
CONTROLLING THE ROLLER COASTER RIDE OF INTEREST RATES
As a fixed-income investor, you might question whether or not this is the bond
market of 1994 all over again. You may recall that in that year interest rates
rose 2% due to stronger economic growth and fears of increasing inflation. The
first quarter of 1996 has reminded us of the volatility of 1994. As the graph
below shows, the monthly yield of the 10-Year Treasury Note over the past two
years looks like a wild roller coaster ride.
10-YEAR TREASURY NOTE
10/93 5.43%
11/93 5.83%
12/93 5.83%
1/94 5.70%
2/94 6.15%
3/94 6.77%
4/94 7.05%
5/94 7.17%
6/94 7.34%
7/94 7.12%
8/94 7.19%
9/94 7.62%
10/94 7.81%
11/94 7.91%
12/94 7.82%
1/95 7.60%
2/95 7.22%
3/95 7.20%
4/95 7.07%
5/95 6.30%
6/95 6.21%
7/95 6.45%
8/95 6.28%
9/95 6.17%
10/95 6.03%
11/95 5.76%
12/95 5.58%
1/96 5.60%
2/96 6.13%
3/96 6.34%
4/96 6.66%
Source: Bloomberg
Over the last several years, we have seen transformations in the fixed-income
markets. In the past, a typical fixed-income investor bought a bond and held it
to maturity. Today, fixed-income investors are more likely to hire a
professional manager by putting money into a mutual fund. The managers of these
funds, tending to be more sophisticated, trade more often and move larger
amounts of money very swiftly. As a result, trading volumes are up and
volatility is on the rise. Hedge funds, another new player in the bond market,
have also made the market a more volatile arena. These funds thrive on
volatility and tend to make big bets as trends in interest rates develop. As the
size and number of hedge funds have grown, their ability to influence the market
has also grown significantly. Their participation, often dwarfing the impact of
other market participants, can greatly accelerate and accentuate changes in the
market. These transformations, or trends of "institutionalization," in the
bond market appear to be here to stay and have increased the level of
volatility.
TAMING THE MADNESS IN THE BOND MARKET
Increased market volatility confirms our belief that it is extremely difficult
to consistently forecast interest rates successfully. Furthermore, with
increased volatility, the penalty for guessing wrong on the direction of rates
increases dramatically. As duration neutral portfolio managers, we do not
attempt to guess the direction of interest rates by shortening or extending our
portfolios. We believe in the efficiency of the market itself - over time,
investors will be paid inflation-adjusted returns equal to the level of risk
taken. We structure our portfolios in an attempt to control risk, or interest
rate sensitivity, by matching the duration of the portfolio to that of its
benchmark (duration measures interest rate sensitivity). This structured fixed-
income approach allows our portfolio managers to "tame the madness in the bond
market.' On a volatile day in the market, our portfolio managers can calmly and
analytically search the market for the relative value opportunities which arise
as other managers feverishly try to get in or get out, or go long or go short.
A MENU OF BOND FUND CHOICES
In the taxable funds, we offer a menu of bond fund choices, each targeted to a
particular maturity segment of the bond market. Portico Short-Term Bond Market
Fund is designed for investors with less tolerance for principal volatility and
lower total return expectations. Intermediate maturities are represented by
Portico Intermediate Bond Market Fund, and for investors seeking tax-exempt
income, we offer Portico Tax-Exempt Intermediate Bond Fund. Portico Bond
IMMDEX/TM Fund utilizes investments in the full maturity range (from cash
investments to 30-year bonds or longer) seeking to achieve total returns, which
we expect will be higher than returns of either the Short-Term Bond Market and
Intermediate Bond Market Funds over complete market cycles, but come with
additional principal volatility.
<TABLE>
PORTICO FAMILY OF FIXED-INCOME FUNDS
-------------------------------------
<CAPTION>
SHORT-TERM FULL-TERM
BOND FUND INTERMEDIATE-TERM BOND FUNDS BOND FUND
---------- ------------------------------------------------ ----------
Portico Short-Term Portico Intermediate Portico Tax-Exempt Portico Bond
Bond Market Fund Bond Market Fund Intermediate Bond Fund IMMDEX/TM Fund
---------------- ---------------- ---------------------- -------------
<S> <C> <C> <C> <C>
LEHMAN BROTHERS LEHMAN BROTHERS LEHMAN BROTHERS LEHMAN BROTHERS
BENCHMARK 1-3 YEAR GOV'T./CORP. INTERMEDIATE 5-YEAR GENERAL GOV'T./CORP.
BOND INDEX GOV'T./CORP. BOND INDEX OBLIGATION BOND INDEX BOND INDEX
AVERAGE QUALITY
OF HOLDINGS <F34> AA AA AAA AA
AVERAGE MATURITY 2.9 YEARS 4.6 YEARS 4.6 YEARS 9.1 YEARS
DURATION 1.7 YEARS 3.3 YEARS 3.9 YEARS 5.0 YEARS
PRINCIPAL VOLATILITY LOW MODERATE MODERATE HIGH
Lehman Brothers is neither a sponsor of nor affiliated with Portico Funds.
Average quality, maturity and duration reflect the portfolio as of April 30, 1996, and will change from time to time in connection
with the management of the portfolios pursuant to the policies described in the current prospectus.
<FN>
<F34>Dollar weighted average quality of portfolio securities held by the Funds.
</TABLE>
WHAT YOU SEE IS WHAT YOU GET
Since our funds are maintained with interest rate sensitivities (durations),
which are essentially equivalent to their underlying benchmarks, Portico Short-
Term Bond Market Fund should normally have less expected interest rate
sensitivity than other Portico bond funds (as evidenced by its shorter duration
of 1.7<F35> years). Similarly, with its 5.0<F35> year duration, Portico Bond
IMMDEX/TM Fund will have the greatest expected interest rate sensitivity. With
durations of 3.3<F35> years and 3.9<F35> years respectively, Portico
Intermediate Bond Market Fund and Portico Tax-Exempt Intermediate Bond Fund are
expected to display relatively moderate volatility when interest rates change.
Because these relationship will NOT change as a result of our outlook for the
future level of interest rates, with the Portico bond funds "what you see is
what you get.' The structured approach allows the investor to select the bond
fund that is right for his or her needs and objectives, keeping in mind the
TRADEOFF BETWEEN RISK AND REWARD. Rest assured that we keep each portfolio's
risks in line with the objective by remaining duration neutral to the benchmark,
thus keeping our portfolios on track in the wild roller coast ride of interest
rates.
<F35>Durations as of April 30, 1996.
LOOKING AHEAD - THE FORECAST
Looking ahead at the next six months, we see continued volatility for the fixed-
income markets, moderate economic growth, and inflation averaging in the range
of 3% -- higher than what we had forecast in our last report. However, interest
rates at current levels are sufficiently high enough to produce attractive real,
or inflation-adjusted yields. As always, we continue to advocate "staying the
course', knowing that the Funds have achieved competitive relative returns and
our structured approach allows you to reasonably compare the volatility of our
fund offerings.
We appreciate your continued confidence in the Portico Funds and look forward to
providing you with the benefits of our structured fixed-income investment
strategies.
Mary Ellen Stanek, CFA
Teresa R. Westman, CFA
Daniel A. Tranchita, CFA
Warren D. Pierson, CFA
Portfolio Managers
Firstar Investment Research & Management Company
SHORT-TERM BOND MARKET FUND
Portico Short-Term Bond Market Fund seeks to provide an annual rate of total
return, comparable to the annual rate of total return of the Lehman Brothers 1-3
Year Government/Corporate Bond Index, before Fund expenses. Of Portico's three
taxable fund offerings, we expect the Short-Term Bond Market Bond Fund will have
the lowest volatility of principal and correspondingly lower expected total
returns over complete market cycles.
Despite interest rate increases over the past six months, Portico Short-Term
Bond Market Fund had a moderate positive total return (due to its relatively
short duration) and performed well versus its benchmark. Our added-value work in
the portfolio continues to be accomplished in three broad areas: ISSUE
SELECTION, SECTOR ALLOCATION, and YIELD CURVE POSITIONING.
ISSUE SELECTION decisions are a critical aspect of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added-value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. government agency debentures; however, we do invest in short duration
Collateralized Mortgage Obligations (CMOs). Each CMO considered for purchase
goes through rigorous testing of cash flows over a wide range of prepayment
scenarios. Those backed by high quality mortgages with stable duration
characteristics may be purchased. To increase the portfolio's yield, we have
significant exposure to non-Treasury securities. Currently, incremental yield
spreads over U.S. Treasury obligations are fairly modest, making higher quality
securities attractive on a relative basis.
YIELD CURVE POSITIONING decisions are also important to the portfolio's
performance. We are currently over-weighted in securities with maturities of
less than one year and in securities which have maturities between two and three
years.
We continue to feel that our "what you see is what you get" approach to fixed-
income investing is particularly valuable to investors in today's increasingly
volatile bond market.
PORTFOLIO MANAGER PROFILE
- ---------------------------
Mary Ellen Stanek, CFA, President of Firstar Investment Research & Management
Company (FIRMCO) and Daniel A. Tranchita, CFA, Vice President and Portfolio
Manager, co-manage the Fund - Mary Ellen since its inception on December 29,
1989 and Dan since January 1, 1993. Mary Ellen has 17 years of investment
management experience and was named a Director of FIRMCO in 1992. Prior to
joining FIRMCO, she headed the Fixed Income and Quantitative Investment
Management Department at Firstar Trust Company. Mary Ellen received her BA from
Marquette University in 1978 and her MBA from the University of Wisconsin-
Milwaukee in 1984. Dan has been with Firstar since 1989 and has seven years of
investment management experience. He received his BA in 1987 and his MBA in 1989
from Marquette University. Mary Ellen and Dan are both Chartered Financial
Analysts.
PORTICO SHORT-TERM BOND MARKET FUND - A - NO LOAD
PORTICO SHORT-TERM BOND MARKET FUND - A - LOAD <F36>
- -------------------------------------------------
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95 4/96
-------- ----- ----- ----- ----- ----- ----- ----
SHORT-TERM BOND
MARKET FUND
- - A - NO LOAD $10,000 10,464 11,865 12,966 13,835 14,037 15,264 15,577
SHORT-TERM BOND
MARKET FUND
- - A - LOAD $ 9,800 10,259 11,632 12,713 13,567 13,769 14,972 15,279
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Per form ance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvest ment
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 APRIL 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 5 Years 12/29/89
------------ ------ ------- ------- --------
PORTICO SHORT-TERM BOND
MARKET FUND - A - NO LOAD 2.1 6.9 4.9 6.9 7.2
PORTICO SHORT-TERM BOND
MARKET FUND - A - LOAD <F36> 0.0 4.7 4.2 6.5 6.9
LEHMAN BROTHERS 1-3 YEAR
GOV'T./CORP. BOND INDEX<F37> 2.1 6.9 4.8 6.4 7.1
<F36>Reflects maximum sales charge of 2.0%.
<F37>The Lehman Brothers 1-3 Year Gov't./Corp. Bond Index is an unmanaged market
value weighted index measuring both principal price changes of, and income pro
vided by, the under lying uni verse of secur ities that comprise the index.
Securities included in the index must meet the follow ing criteria: fixed as
opposed to variable rate; not less than one year to maturity; not more than
three years remaining to maturity; and minimum out stand ing par value of $100
million. An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The load performance for the Series A shares has been
restated to reflect the impact of the sales charge (and the elimination of the
purchase price adjustment). The no-load performance for the Series A shares has
been restated to reflect the elimination of the purchase price adjustment. Prior
to January 10, 1995, Series A performance does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
SECTOR DISTRIBUTION
4/30/96
- -------------------------------------
U.S. TREASURY 14%
- -------------------------------------
U.S. GOVERNMENT AGENCY 1%
- -------------------------------------
MORTGAGE-BACKED 27%
- -------------------------------------
FINANCE, BANKING, BROKERAGE 15%
- -------------------------------------
INDUSTRIAL 7%
- -------------------------------------
UTILITY 7%
- -------------------------------------
INTERNATIONAL/YANKEE 3%
- -------------------------------------
ASSET-BACKED 22%
- -------------------------------------
CASH 1%
- -------------------------------------
OTHER 3%
- -------------------------------------
TOTAL 100%
- -------------------------------------
PORTFOLIO COMPOSITION
4/30/96
- -------------------------------------
AVERAGE MATURITY 2.9 YEARS
- -------------------------------------
AVERAGE DURATION 1.7 YEARS
- -------------------------------------
QUALITY DISTRIBUTION
4/30/96
- -------------------------------------
U.S. TREASURY 14%
- -------------------------------------
U.S. GOVERNMENT AGENCY 14%
- -------------------------------------
Aaa 38%
- -------------------------------------
Aa 4%
- -------------------------------------
A 26%
- -------------------------------------
Baa 4%
- -------------------------------------
TOTAL 100%
- -------------------------------------
SEC 30-DAY YIELD
- -------------------------------------
5.51%
- -------------------------------------
TOTAL FUND NET ASSETS
4/30/96
- -------------------------------------
$198,334,110
- -------------------------------------
INTERMEDIATE BOND MARKET FUND
Portico Intermediate Bond Market Fund seeks to provide an annual rate of total
return comparable to the annual rate of total return of the Lehman Brothers
Intermediate Government/Corporate Bond Index, before Fund expenses. We expect
the Intermediate Bond Market Fund will have moderate volatility of principal and
correspondingly higher expected total returns over complete market cycles.
Despite interest rate increases that occurred over the past six months, Portico
Intermediate Bond Market Fund had a modest positive total return and performed
well versus its benchmark. Our added-value work in the portfolio continues to be
accomplished in three broad areas: ISSUE SELECTION, SECTOR ALLOCATION, and YIELD
CURVE POSITIONING.
ISSUE SELECTION decisions are a critical element of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added-value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. government agency debentures and mortgage-backed securities. While we have
very little exposure to collateralized mortgage obligations (CMOs), when we do
invest in CMOs we scrutinize each investment carefully to confirm our belief
that it will add value to the Fund. To increase the portfolio's yield, we have
significant exposure to non-Treasury securities. Currently, incremental yield
spreads over U.S. Treasury obligations are fairly modest, making higher quality
securities attractive on a relative basis.
YIELD CURVE POSITIONING decisions are also important to the portfolio's
performance. We are currently over-weighted in securities with three and four
year maturities. We also think the seven year area has reasonable value.
We continue to feel that our "what you see is what you get" approach to fixed-
income investing is particularly valuable to investors in today's increasingly
volatile bond market.
PORTFOLIO MANAGER PROFILE
- --------------------------
Mary Ellen Stanek, CFA, President of Firstar Investment Research & Management
Company (FIRMCO) and Teresa R. Westman, CFA, Senior Vice President and Senior
Portfolio Manager have co-managed the Fund since its inception on January 5,
1993. Mary Ellen has 17 years of investment management experience and was named
a Director of FIRMCO in 1992. Prior to joining FIRMCO, she headed the Fixed
Income and Quantitative Investment Management Department at Firstar Trust
Company. Mary Ellen received her BA from Marquette University in 1978 and her
MBA from the University of Wisconsin-Milwaukee in 1984. Teresa has been with
Firstar since 1987 and has 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. Mary Ellen and Teresa are both Chartered
Financial Analysts.
PORTICO INTERMEDIATE BOND MARKET FUND - A - NO LOAD
PORTICO INTERMEDIATE BOND MARKET FUND - LOAD <F38>
1/5/93 10/93 10/94 10/95 4/96
------ ----- ----- ----- ----
INTERMEDIATE BOND MARKET
FUND - A - NO LOAD $10,000 10,858 10,671 11,958 12,091
INTERMEDIATE BOND MARKET
FUND - A - LOAD $ 9,800 10,646 10,463 11,723 11,856
This chart assumes an initial investment of $10,000 made on 1/5/93 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 1/5/93
------------ ------ ------- ------
PORTICO INTERMEDIATE BOND
MARKET FUND - A - NO LOAD 1.1 7.8 5.0 5.9
PORTICO INTERMEDIATE BOND
MARKET FUND - A - LOAD<F38> (0.9) 5.7 4.3 5.3
LEHMAN BROTHERS INTERMEDIATE
GOV'T./CORP. BOND INDEX<F39> 1.2 7.8 5.1 6.1
<F38> Reflects maximum sales charge of 2.0%.
<F39> The Lehman Brothers Intermediate Gov't./Corp. Bond Index is an unmanaged
market value weighted index measuring both principal price changes of, and
income pro vided by, the under lying uni verse of secur ities that comprise the
index. Securities included in the index must meet the follow ing critieria:
fixed as opposed to variable rate; remaining maturity of one to ten years;
minimum out stand ing par value of $100 million; and rated investment grade or
higher by Moody's, Standard & Poor's, or Fitch, in that order. An investment
cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The load performance for the Series A shares has been
restated to reflect the impact of the sales charge (and the elimination of the
purchase price adjustment). The no-load performance for the Series A shares has
been restated to reflect the elimination of the purchase price adjustment. Prior
to January 10, 1995, Series A performance does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
SECTOR DISTRIBUTION
4/30/96
- ----------------------------------------
U.S. TREASURY 18%
- ----------------------------------------
U.S. GOVERNMENT AGENCY 1%
- ----------------------------------------
MORTGAGE-BACKED 12%
- ----------------------------------------
FINANCE, BANKING, BROKERAGE 33%
- ----------------------------------------
INDUSTRIAL 2%
- ----------------------------------------
UTILITY 1%
- ----------------------------------------
INTERNATIONAL 4%
- ----------------------------------------
ASSET-BACKED 25%
- ----------------------------------------
CASH 2%
- ----------------------------------------
OTHER 2%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
PORTFOLIO COMPOSITION
4/30/96
- ----------------------------------------
AVERAGE MATURITY 4.6 YEARS
- ----------------------------------------
AVERAGE DURATION 3.3 YEARS
- ----------------------------------------
QUALITY DISTRIBUTION
4/30/96
- ----------------------------------------
U.S. TREASURY 19%
- ----------------------------------------
U.S. GOVERNMENT AGENCY 10%
- ----------------------------------------
AAA 28%
- ----------------------------------------
A 40%
- ----------------------------------------
BAA 3%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
SEC 30-DAY YIELD
- ----------------------------------------
5.54%
- ----------------------------------------
TOTAL FUND NET ASSETS
4/30/96
- ----------------------------------------
$165,381,011
- ----------------------------------------
TAX-EXEMPT INTERMEDIATE BOND FUND
Portico Tax-Exempt Intermediate Bond Fund seeks to provide current income exempt
from federal income tax and emphasizes total return with relatively low
volatility of principal. The Fund currently has an average quality rating of AAA
and a 4.6 year average maturity. As a result, we expect it to display less
principal volatility than the typical municipal bond fund which, according to
Lipper Analytical Services (a leading mutual fund rating service), has an
average maturity of 19 years. The Fund does not currently buy issues which are
subject to the alternative minimum tax.
After rallying through 1995 and into early 1996, the bond market changed its
course abruptly in mid-February. Since that time, U.S. Treasury yields have
risen approximately 100 basis points (one percentage point), while municipal
yields have risen a less severe 70 basis points. Portico Tax-Exempt Intermediate
Bond Fund has offered a place of refuge from falling bond prices in 1996. The
Fund's strong relative performance year-to-date has been a result of its unique
position in the short- to intermediate-term sector of the municipal bond market,
careful security selection and strategic yield curve positioning.
EMPHASIZING SHORT AND INTERMEDIATE MUNICIPAL SECURITIES helped the Fund preserve
its value relative to the municipal market and to the fixed-income market as a
whole.
CAREFUL SELECTION OF SECURITIES has contributed significantly to performance
over the last six months. The Fund has focused on high quality issues with
particular emphasis on prerefunded bonds (bonds secured with U.S. Treasury
issues). Emphasizing higher coupon bonds which trade at prices well above par,
the Fund has minimal exposure to the adverse effect of rising rates on lower
coupon bonds.
YIELD CURVE POSITIONING also played an important role in Portico Tax-Exempt
Intermediate Bond Fund's performance over the last six months. Unlike the
Treasury yield curve which steepened dramatically, the municipal yield curve
experienced only a modest steepening since last October. We believe our
concentration of maturities in the 4-5 year maturity range contributed
significantly to the Fund's performance over this time frame.
PORTFOLIO MANAGER PROFILE
- --------------------------
Warren D. Pierson, CFA, Vice President and Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) has managed the Fund since
June 22, 1993. Since joining Firstar in 1985, his responsibilities have included
trading government and government agency issues, as well as money market
instruments. His current portfolio management responsibilities focus on the tax-
exempt bond market. Warren received his BA from Lawrence University in 1984. He
is a Chartered Financial Analyst, as well as a member of the Association for
Investment Management and Research and the Milwaukee Investment Analysts
Society.
PORTICO TAX-EXEMPT INTERMEDIATE BOND FUND - A - NO LOAD
PORTICO TAX-EXEMPT INTERMEDIATE BOND FUND - A - LOAD <F40>
- ----------------------------------------------------------
2/8/93 10/93 10/94 10/95 4/96
------ ----- ----- ----- ----
PORTICO TAX-EXEMPT
INTERMEDIATE BOND FUND
- - A - NO LOAD) $10,000 10,536 10,459 11,408 11,534
PORTICO TAX-EXEMPT
INTERMEDIATE BOND FUND
- - A - LOAD) $ 9,800 10,329 10,254 11,184 11,308
This chart assumes an initial investment of $10,000 made on 2/8/93 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 2/8/93
------------ ------ ------- ------
PORTICO TAX-EXEMPT
INTERMEDIATE BOND FUND
- A - NO LOAD 1.1 5.8 4.6 4.5
PORTICO TAX-EXEMPT
INTERMEDIATE BOND FUND
- A - LOAD<F40> (0.9) 3.7 3.9 3.9
LEHMAN BROTHERS 5-YEAR
GENERAL OBLIGATION
BOND INDEX<F41> 1.6 7.2 5.1 5.4
<F40> Reflects maximum sales charge of 2.0%.
<F41> The Lehman Brothers 5 Year General Obligation Bond Index, an unmanaged
index, is a total return performance benchmark for the investment-grade
tax-exempt bond market. To be included in this index, a municipal bond must
be a state or local General Obligation bond; have a minimum credit rating of
at least Baa; have been issued as part of an offering of at least $50 million;
have a maturity amount outstanding of at least $3 million; have been issued
within the last five years; and have a maturity of 4 to 6 years. An investment
cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. The load performance for
the Series A shares has been restated to reflect the impact of the sales charge.
Prior to January 10, 1995, Series A performance does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
SECTOR DISTRIBUTION
4/30/96
- ----------------------------------------
GENERAL OBLIGATIONS 7%
- ----------------------------------------
ESCROWED/PREREFUNDED 73%
- ----------------------------------------
INSURED 9%
- ----------------------------------------
REVENUE 8%
- ----------------------------------------
CASH EQUIVALENT 3%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
QUALITY DISTRIBUTION
4/30/96
- ----------------------------------------
AAA 89%
- ----------------------------------------
AA 6%
- ----------------------------------------
A 5%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
PORTFOLIO COMPOSITION
4/30/96
- ----------------------------------------
AVERAGE MATURITY 4.6 YEARS
- ----------------------------------------
AVERAGE DURATION 3.9 YEARS
- ----------------------------------------
SEC 30-DAY YIELD
- ----------------------------------------
3.91%
- ----------------------------------------
TOTAL FUND NET ASSETS
4/30/96
- ----------------------------------------
$38,014,494
- ----------------------------------------
BOND IMMDEX/TM FUND
Portico Bond IMMDEX/TM Fund seeks to provide an annual rate of total return
comparable to the annual rate of total return of the Lehman Brothers
Government/Corporate Bond Index, before Fund expenses. Of Portico's three
taxable fund offerings, we expect the Bond IMMDEX/TM Fund will have the highest
volatility of principal and commensurately higher expected total returns over
complete market cycles.
Despite interest rate increases that occurred over the past six months, Portico
Bond IMMDEX Fund avoided a negative total return (even though it has the longest
duration of all of the Portico bond funds) and performed well versus its
benchmark. Our added-value work in the portfolio continues to be accomplished in
three broad areas: ISSUE SELECTION, SECTOR ALLOCATION, and YIELD CURVE
POSITIONING.
ISSUE SELECTION decisions are a critical element of our structured management
approach. Every aspect of a security is carefully analyzed. We examine a bond's
credit quality, duration characteristics, and any embedded options. Our research
plays a fundamental role in our added-value work.
In terms of SECTOR ALLOCATION decisions, we currently favor the finance,
banking, brokerage, and asset-backed sectors. We continue to limit exposure to
U.S. Government agency debentures and mortgage backed securities. While we do
invest in collateralized mortgage obligations, we scrutinize each investment
carefully to confirm our belief that it will add value to the Fund. To increase
the portfolio's yield, we have significant exposure to non-Treasury securities.
Currently, incremental yield spreads over U.S. Treasury obligations are fairly
modest, making higher quality securities attractive on a relative basis.
YIELD CURVE POSITIONING decisions are also important to the portfolio's
performance. We are currently over-weighted in securities with three and four
year maturities and those with fifteen to twenty year maturities. We believe the
Fund's "all-weather" yield curve positioning has helped in the recent volatile
interest rate environment.
We continue to feel that our "what you see is what you get" approach to fixed-
income investing is particularly valuable to investors in today's increasingly
volatile bond market.
PORTFOLIO MANAGER PROFILE
- --------------------------
Mary Ellen Stanek, CFA, President of Firstar Investment Research & Management
Company (FIRMCO) and Teresa R. Westman, CFA, Senior Vice President and Senior
Portfolio Manager have co-managed the Fund - Mary Ellen since its inception on
December 29, 1989 and Teresa since January 1, 1992. Mary Ellen has 17 years of
investment management experience and was named a Director of FIRMCO in 1992.
Prior to joining FIRMCO, she headed the Fixed Income and Quantitative Investment
Management Department at Firstar Trust Company. Mary Ellen received her BA From
Marquette University in 1978 and her MBA from the University of Wisconsin-
Milwaukee in 1984. Teresa has been with Firstar since 1987 and has 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. Mary Ellen and
Teresa are both Chartered Financial Analysts.
PORTICO BOND IMMDEX/TM FUND - A NO LOAD
PORTICO BOND IMMDEX/TM FUND - LOAD <F42>
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95 4/96
-------- ----- ----- ----- ----- ----- ----- -----
BOND IMMDEX/TM
FUND - A -NO LOAD $10,000 10,421 12,105 13,375 15,154 14,565 16,903 16,895
BOND IMMDEX/TM
FUND - A - LOAD $9,800 10,213 11,863 13,108 14,851 14,274 16,565 16,557
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Perform ance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 5 Years 12/29/89
------------ ------ ------- ------- --------
PORTICO BOND
IMMDEX/TM FUND
- A - NO LOAD (0.1) 8.7 5.7 8.5 8.6
PORTICO BOND
IMMDEX/TM FUND
- A - LOAD <F42> (2.1) 6.6 5.0 8.1 8.3
LEHMAN BROTHERS
GOV'T./CORP.
BOND INDEX <F43> 0.0 8.7 5.5 8.3 8.5
<F42> Reflects maximum sales charge of 2.0%.
<F43> The Lehman Brothers Gov't./Corp. Bond Index is an unmanaged market value
weighted index measuring both principal price changes of, and income pro vided
by, the under lying uni verse of secur ities that comprise the index. Securities
included in the index must meet the follow ing critieria: fixed as opposed to
variable rate; not less than one year to maturity; minimum out stand ing par
value of $100 million; and rated investment grade or higher by Moody's, Standard
& Poor's, or Fitch, in that order. An investment cannot be made directly in an
index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 2% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The load performance for the Series A shares has been
restated to reflect the impact of the sales charge (and the elimination of the
purchase price adjustment). The no-load performance for the Series A shares has
been restated to reflect the elimination of the purchase price adjustment. Prior
to January 10, 1995, Series A performance does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
SECTOR DISTRIBUTION
4/30/96
- ----------------------------------------
U.S. TREASURY 30%
- ----------------------------------------
MORTGAGE-BACKED 4%
- ----------------------------------------
FINANCE, BANKING, BROKERAGE 32%
- ----------------------------------------
INDUSTRIAL 3%
- ----------------------------------------
UTILITY 3%
- ----------------------------------------
INTERNATIONAL 5%
- ----------------------------------------
ASSET-BACKED 20%
- ----------------------------------------
CASH 2%
- ----------------------------------------
OTHER 1%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
PORTFOLIO COMPOSITION
4/30/96
- ----------------------------------------
AVERAGE MATURITY 9.1 YEARS
- ----------------------------------------
AVERAGE DURATION 5.0 YEARS
- ----------------------------------------
QUALITY DISTRIBUTION
4/30/96
- ----------------------------------------
U.S. TREASURY 30%
- ----------------------------------------
U.S. GOVERNMENT AGENCY 3%
- ----------------------------------------
AAA 24%
- ----------------------------------------
AA 2%
- ----------------------------------------
A 36%
- ----------------------------------------
BAA 5%
- ----------------------------------------
TOTAL 100%
- ----------------------------------------
SEC 30-DAY YIELD
- ----------------------------------------
6.01%
- ----------------------------------------
TOTAL FUND NET ASSETS
4/30/96
- ----------------------------------------
$362,147,183
- ----------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
APRIL 30, 1996
(UNAUDITED)
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
---------- ---------- ---------- ----------
ASSETS:
Investments, at value
(cost $199,338, $163,376,
$37,243 and $355,130,
respectively) $197,346 $162,447 $ 37,445 $356,839
Interest receivable 3,160 2,995 712 5,917
Capital shares sold 233 32 - 110
Organization costs, net of
accumulated amortization - 4 3 -
Cash 16 - - 9
Other assets 15 16 7 18
-------- -------- -------- --------
Total Assets 200,770 165,494 38,167 362,893
-------- -------- -------- --------
LIABILITIES:
Payable for securities
purchased 2,262 - 107 532
Capital shares redeemed 34 3 - 31
Payable to affiliates 114 77 27 154
Accrued expenses 26 33 19 29
-------- -------- -------- --------
Total Liabilities 2,436 113 153 746
-------- -------- -------- --------
NET ASSETS $198,334 $165,381 $ 38,014 $362,147
======== ======== ======== ========
NET ASSETS CONSIST OF:
Capital stock 201,151 167,058 37,903 360,368
Undistributed net
investment income 158 132 20 379
Undistributed accumulated
net realized (losses) (983) (880) (111) (309)
Unrealized net appreciation
(depreciation) on investments (1,992) (929) 202 1,709
-------- -------- -------- --------
Total Net Assets $193,334 $165,381 $ 38,014 $362,147
======== ======== ======== ========
SERIES A:
Net assets $ 55,118 $ 14,163 $ 9,344 $ 34,499
Shares authorized ($.0001
par value) 500,000 500,000 500,000 500,000
Shares issued and outstanding 5,404 1,409 921 1,277
Net asset value and
redemption price
per share <F44> $10.20 $10.05 $10.14 $27.02
======== ======== ======== ========
Maximum offering price
per share <F44> $10.41 $10.26 $10.35 $27.57
======== ======== ======== ========
SERIES INSTITUTIONAL:
Net assets $143,216 $151,218 $ 28,670 $327,648
Shares authorized
($.0001 par value) 500,000 500,000 500,000 500,000
Shares issued and outstanding 14,041 15,041 2,827 12,126
Net asset value, redemption
price and offering
price per share <F44> $10.20 $10.05 $10.14 $27.02
======== ======== ======== ========
<F44> Amounts may not recalculate due to rounding.
See notes to the financial statements.
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
SIX MONTHS ENDED APRIL 30, 1996
(UNAUDITED)
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
---------- ---------- ---------- ----------
INVESTMENT INCOME:
Interest income $5,430 $5,061 $868 $10,966
-------- -------- -------- --------
EXPENSES:
Investment advisory fees 504 404 92 503
Administration fees 101 97 22 201
Shareowner servicing and
accounting costs 70 47 40 57
Service organization fees -
Series A 63 16 11 33
Custody fees 17 15 5 31
Federal and state
registration fees 8 11 3 12
Professional fees 14 11 12 13
Reports to shareowners 16 7 5 9
Amortization of
organization costs - 1 1 -
Directors' fees and expenses 4 4 3 4
Other 3 4 1 3
-------- -------- -------- --------
Total expenses before waiver 800 617 195 866
Less: Waiver of expenses (316) (197) (93) (116)
-------- -------- -------- --------
Net Expenses 484 420 102 750
-------- -------- -------- --------
NET INVESTMENT INCOME 4,946 4,641 766 10,216
-------- -------- -------- --------
REALIZED AND UNREALIZED Gain (LOSS):
Net realized gain on
investment transactions 645 954 31 740
Change in unrealized
appreciation (depreciation)
on investments (2,803) (3,990) (396) (11,520)
-------- -------- -------- --------
Net loss on investments (2,158) (3,036) (365) (10,780)
-------- -------- -------- --------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $2,788 $1,605 $401 $ (564)
======== ======== ======== ========
See notes to the financial statements.
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<CAPTION>
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE BOND IMMDEX/TM
FUND FUND FUND FUND
-------------------- ---------------------- ------------------- -------------------
Six months Year Six months Year Six months Year Six months Year
ended ended ended ended ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31,
1996 1995 1996 1995 1996 1995 1996 1995
--------- --------- --------- --------- --------- --------- --------- ---------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $4,946 $ 7,887 $ 4,641 $ 6,720 $766 $ 1,332 $10,216 $ 18,025
Net realized gain (loss) on
investments 645 (329) 954 (417) 31 8 740 (890)
Change in unrealized appreciation
(depreciation) on investments (2,803) 3,275 (3,990) 6,232 (396) 1,367 (11,520) 24,964
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in
net assets resulting
from operations 2,788 10,833 1,605 12,535 401 2,707 (564) 42,099
-------- -------- -------- -------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Shares sold 80,100 47,914 45,484 61,490 8,672 16,278 78,973 72,259
Shares issued to owners in
reinvestment of dividends 4,038 6,375 2,966 4,371 358 676 8,810 17,191
-------- -------- -------- -------- -------- -------- -------- --------
84,138 54,289 48,450 65,861 9,030 16,954 87,783 89,450
Shares redeemed (26,374) (37,051) (20,568) (19,569) (5,956) (9,203) (27,124) (56,782)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase 57,764 17,238 27,882 46,292 3,074 7,751 60,659 32,668
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SHAREOWNERS <F45>:
From net investment income - (1,426) - (1,081) - (228) - (3,950)
-------- -------- -------- -------- -------- -------- -------- --------
From net realized gains - - - - - - - (404)
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS <F45>:
From net investment income (1,433) (2,191) (360) (475) (172) (238) (789) (910)
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS <F45>:
From net investment income (3,474) (4,133) (4,263) (5,060) (595) (853) (9,308) (14,132)
-------- -------- -------- -------- -------- -------- -------- --------
TOTAL INCREASE IN NET ASSETS 55,645 20,321 24,864 52,211 2,708 9,139 49,998 55,371
NET ASSETS:
Beginning of period 142,689 122,368 140,517 88,306 35,306 26,167 312,149 256,778
-------- -------- -------- -------- -------- -------- -------- --------
End of period (including undistributed
net investment income of $158, $119,
$132, $112, $20, $20, $379 and
$261, respectively) $198,334 $142,689 $165,381 $140,517 $38,014 $35,306 $362,147 $312,149
======== ======== ======== ======== ======== ======== ======== ========
<FN>
<F45> On January 1, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective on
January 9, 1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares. Distributions
to shareowners from net investment income and net realized gains reflect activity for the Funds for the period November 1, 1994,
through January 9, 1995, and for each Fund's respective class of Shares for the period from January 10, 1995, through October 31,
1995.
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
SHORT-TERM BOND MARKET FUND
------------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995 <F48> Year ended October 31,
------------------------- ---------------------- ---------------------------------
Series Series Series Series
A Institutional A Institutional 1994 1993 1992<F47> 1991
---------- ------------- ---------- -------------- ---- ---- -------- ----
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $10.28 $10.28 $10.03 $10.03 $10.56 $10.60 $10.33 $ 9.79
Income from investment operations:
Net investment income <F49> 0.29 0.30 0.61 0.63 0.56 0.58 0.64 0.73
Net realized and unrealized
gains (losses) on securities (0.08) (0.08) 0.24 0.24 (0.41) 0.10 0.29 0.54
-------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations 0.21 0.22 0.85 0.87 0.15 0.68 0.93 1.27
-------- -------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.29) (0.30) (0.60) (0.62) (0.56) (0.58) (0.64) (0.73)
Distributions from capital gains - - - - (0.12) (0.14) (0.02) -
-------- -------- -------- -------- -------- -------- -------- --------
Total distributions (0.29) (0.30) (0.60) (0.62) (0.68) (0.72) (0.66) (0.73)
-------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $10.20 $10.20 $10.28 $10.28 $10.03 $10.56 $10.60 $10.33
======== ======== ======== ======== ======== ======== ======== ========
Total return <F49><F50> 2.05% 2.18% 8.74% 8.95% 1.46% 6.70% 9.28% 13.39%
Supplemental data and ratios:
Net assets, in thousands,
end of period $55,118 $143,216 $47,730 $94,959 $122,368 $142,518 $129,409 $63,183
Ratio of net expenses
to average net assets <F52> 0.75% 0.50% 0.69% 0.50% 0.50% 0.52% 0.60% 0.60%
Ratio of net investment income
to average net assets <F52> 5.70% 5.95% 6.04% 6.23% 5.43% 5.53% 6.00% 7.13%
Portfolio turnover rate <F53> 29.69% 29.69% 100.58% 100.58% 76.13% 87.62% 82.20% 66.80%
<FN>
<F46> Commencement of operations.
<F47> Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F48> On January 9, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective
January 9, 1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares. For the year
ended October 31, 1995, the Financial Highlights ratios of net expenses to average net assets, ratios of net investment income to
average net assets, total return and the per share income from investment operations and distributions are presented on a basis
whereby the Fund's net investment income, net expenses, net realized and unrealized gains (losses) and distributions for the period
November 1, 1994 through January 9, 1995, were allocated to each class of shares based upon the relative net assets of each class of
shares as of the close of business on January 9, 1995, and the results thereof combined with the results of operations and
distributions for each applicable class for the period January 10, 1995 through October 31, 1995.
<F49> For the Tax-Exempt Intermediate Bond Fund, substantially all investment income is exempt from Federal income tax.
<F50> Not annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds for the period
ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds, and for the period ended April 30,
1996, for all Funds.
<F51> The total return calculation does not reflect the 2% front end sales charge for Series A.
<F52> Annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds and for the period
ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds, and for the period ended April 30,
1996, for all Funds.
<F53> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares
issued.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (cont'd)
<CAPTION>
INTERMEDIATE BOND MARKET FUND
----------------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F48> Year ended Jan. 5, 1993 <F46>
------------------------------- ------------------------- Oct. 31, through
Series A Series Institutional Series A Series Institutional 1994 Oct. 31, 1993
-------- -------------------- --------- --------------------- ---- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $10.21 $10.21 $9.67 $9.67 $10.45 $10.00
Income from investment operations:
Net investment income <F49> 0.28 0.29 0.60 0.62 0.51 0.40
Net realized and unrealized
gains (losses) on securities (0.16) (0.16) 0.53 0.53 (0.69) 0.45
-------- -------- -------- -------- -------- --------
Total from investment
operations 0.12 0.13 1.13 1.15 (0.18) 0.85
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.28) (0.29) (0.59) (0.61) (0.51) (0.40)
Distributions from capital gains - - - - (0.09) -
-------- -------- -------- -------- -------- --------
Total distributions (0.28) (0.29) (0.59) (0.61) (0.60) (0.40)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $10.05 $10.05 $10.21 $10.21 $9.67 $10.45
======== ======== ======== ======== ======== ========
Total return <F50><F51> 1.13% 1.25% 12.04% 12.25% (1.73)% 8.58%
Supplemental data and ratios:
Net assets, in thousands,
end of period $14,163 $151,218 $11,576 $128,941 $88,306 $56,794
Ratio of net expenses
to average net assets <F52> 0.75% 0.50% 0.69% 0.50% 0.50% 0.50%
Ratio of net investment income
to average net assets <F52> 5.51% 5.76% 6.07% 6.26% 5.19% 4.65%
Portfolio turnover rate <F53> 46.77% 46.77% 66.69% 66.69% 56.25% 82.37%
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONT'D)
<CAPTION>
TAX-EXEMPT INTERMEDIATE BOND FUND
-----------------------------------------------------------------------------------------
Six months Year ended
April 30, 1996 Oct. 31, 1995<F48> Year ended Feb. 8, 1993<F46>
--------------------------- --------------------------- Oct. 31, through
Series A Series Inst'l. Series A Series Inst'l. 1994 Oct. 31, 1993
--------- -------------- -------- -------------- ------ --------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $10.23 $10.24 $9.78 $9.78 $10.26 $10.00
Income from investment operations:
Net investment income <F49> 0.20 0.22 0.42 0.44 0.41 0.27
Net realized and unrealized
gains (losses) on securities (0.09) (0.10) 0.45 0.46 (0.48) 0.26
-------- -------- -------- -------- -------- --------
Total from investment
operations 0.11 0.12 0.87 0.90 (0.07) 0.53
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.20) (0.22) (0.42) (0.44) (0.41) (0.27)
Distributions from capital gains - - - - - -
-------- -------- -------- -------- -------- --------
Total distributions (0.20) (0.21) (0.42) (0.44) (0.41) (0.27)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $10.14 $10.14 $10.23 $10.24 $9.78 $10.26
======== ======== ======== ======== ======== ========
Total return <F50><F51> 1.11% 1.14% 9.07% 9.38% (0.73)% 5.36%
Supplemental data and ratios:
Net assets, in thousands,
end of period $9,344 $28,670 $7,711 $27,595 $26,167 $23,866
Ratio of net expenses
to average net assets <F52> 0.75% 0.50% 0.71% 0.51% 0.60% 0.59%
Ratio of net investment income
to average net assets <F52> 3.98% 4.23% 4.25% 4.45% 4.04% 3.75%
Portfolio turnover rate <F53> 13.11% 13.11% 44.13% 44.13% 58.54% 3.23%
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONT'D)
<CAPTION>
BOND IMMDEX/TM FUND
------------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F48> Year ended October 31,
------------------------- ---------------------- ---------------------------------
Series Series Series Series
A Inst'l A Inst'l 1994 1993 1992<F47> 1991
---------- ------------- ---------- -------------- ---- ---- -------- ----
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value,
beginning of period $27.82 $27.82 $25.67 $25.67 $28.91 $27.31 $26.50 $24.52
Income from investment operations:
Net investment income <F49> 0.79 0.84 1.68 1.74 1.65 1.68 1.75 1.85
Net realized and unrealized
gains (losses) on securities (0.79) (0.81) 2.30 2.29 (2.74) 1.83 0.96 1.98
-------- --------- -------- -------- -------- -------- -------- --------
Total from investment
operations - 0.03 3.98 4.03 (1.09) 3.51 2.71 3.83
-------- --------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.80) (0.83) (1.79) (1.84) (1.65) (1.70) (1.76) (1.85)
Distributions from capital gains - - (0.04) (0.04) (0.50) (0.21) (0.14) -
-------- --------- -------- -------- -------- -------- -------- --------
Total distributions (0.80) (0.83) (1.83) (1.88) (2.15) (1.91) (1.90) (1.85)
-------- --------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $27.02 $27.02 $27.82 $27.82 $25.67 $28.91 $27.31 $26.50
======== ======== ======== ======== ======== ======== ======== ========
Total return <F50><F51> (0.05)% 0.07% 16.05% 16.26% (3.89)% 13.30% 10.49% 16.16%
Supplemental data and ratios:
Net assets, in thousands,
end of period $34,499 $327,648 $21,875 $290,274 $256,778 $260,468 $181,421 $90,034
Ratio of net expenses
to average net assets <F52> 0.68% 0.43% 0.64% 0.44% 0.48% 0.50% 0.50% 0.50%
Ratio of net investment income
to average net assets <F52> 5.86% 6.11% 6.31% 6.51% 6.14% 6.10% 6.92% 7.85%
Portfolio turnover rate <F53> 24.13% 24.13% 41.67% 41.67% 49.70% 81.18% 37.72% 131.69%
<FN>
<F46> Commencement of operations.
<F47> Effective February 3, 1992, FIRMCO assumed the investment advisory responsibilities of Firstar Trust Company.
<F48> On January 9, 1995, all previously existing series of shares of each Fund were reclassified as Series A shares. Effective
January 9, 1995, Institutional shareowners exchanged their Series A shares for the Funds' Institutional series shares. For the year
ended October 31, 1995, the Financial Highlights ratios of net expenses to average net assets, ratios of net investment income to
average net assets, total return and the per share income from investment operations and distributions are presented on a basis
whereby the Fund's net investment income, net expenses, net realized and unrealized gains (losses) and distributions for the period
November 1, 1994 through January 9, 1995, were allocated to each class of shares based upon the relative net assets of each class of
shares as of the close of business on January 9, 1995, and the results thereof combined with the results of operations and
distributions for each applicable class for the period January 10, 1995 through October 31, 1995.
<F49> For the Tax-Exempt Intermediate Bond Fund, substantially all investment income is exempt from Federal income tax.
<F50> Not annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds for the period
ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds, and for the period ended April 30,
1996, for all Funds.
<F51> The total return calculation does not reflect the 2% front end sales charge for Series A.
<F52> Annualized for the period ended October 31, 1990, for the Short-Term Bond Market and Bond IMMDEX/TM Funds and for the period
ended October 31, 1993, for the Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds, and for the period ended April 30,
1996, for all Funds.
<F53> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares
issued.
See notes to the financial statements.
</TABLE>
SHORT-TERM BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
LONG-TERM INVESTMENTS 98.2%
ASSET-BACKED SECURITIES 22.0%
AUTO LOAN RECEIVABLES 3.7%
Banc One Auto Trust, Series 1995-A, Class A3,
$1,000 6.85%, 11/15/97 $ 1,005
Capital Auto Receivables Asset Trust, Series 1993-3,
3,620 Asset Backed Certificates, 4.60%, 10/15/98 3,551
Chase Manhattan Grantor Trust, Pass-Thru
2,091 Certificates, Series 1995-B, Class A, 5.90%, 11/15/01 2,086
ML Asset Backed Corporation, Series 1992-1,
34 Class A2, 5.50%, 5/15/98 34
USAA Auto Loan Grantor Trust, Series 1994-1,
567 Class A, 5.00%, 11/15/99 563
--------
7,239
--------
CREDIT CARD RECEIVABLES 18.3%
Banc One Credit Card Master Trust:
2,500 1994-B, Class A, 7.55%, 12/15/99 2,555
3,500 1994-C, Class A, 7.80%, 12/15/00 3,613
Capital One Master Trust:
3,000 Series 1993-1, Class A, 5.20%, 2/15/02 2,925
4,750 Series 1994-4, Class A, 6.80%, 12/15/00 4,800
Discover Card Master Trust:
2,670 Series 1992-B, Class A, 6.80%, 6/16/00 2,692
2,000 Series 1993-B, Class A, 6.75%, 2/15/00 2,005
Discover Card Master Trust I, Series 1993-2,
3,350 Class A, 5.40%, 11/16/01 3,277
First Deposit Master Trust, Series 1995-2, Class A,
4,000 6.05%, 8/15/02 3,983
MBNA Master Credit Card Trust:
1,000 Series 1992-1, Class A, 7.25%, 6/15/99 1,012
4,190 Series 1992-2, Class A, 6.20%, 8/15/99 4,193
Sears Credit Account Master Trust, Series 1994-2,
5,245 Class A, 7.25%, 7/16/01 5,331
--------
36,386
--------
CORPORATE BONDS 27.7%
Atlantic Richfield Notes,
4,169 10.25%, 7/02/00 4,420
Bear Stearns Company Senior Notes,
1,000 6.75%, 8/15/00 995
Beneficial Corp. Medium Term Notes,
1,090 9.80%, 5/12/97 1,131
BP America, Inc. Debentures,
1,000 8.875%, 12/01/97 1,039
BP America, Inc. Debentures,
2,000 10.00%, 7/01/18 2,221
Chrysler Corp. Debentures,
2,150 10.95%, 8/01/17 2,381
Chrysler Corp. Notes,
2,498 10.40%, 8/01/99 2,622
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
CORPORATE BONDS 27.7% (CONT.)
Deseret Generation & Transmission Coop
$1,000 Debentures, 10.11%, 12/15/17 $ 1,100
Ford Motor Credit Co. Debentures:
500 8.875%, 6/15/99 531
750 8.375%, 1/15/00 787
General Motors Acceptance Corp. Notes,
3,600 7.75%, 1/15/99 3,703
GTE Corp. Debentures,
4,125 10.75%, 9/15/17 4,558
Heller Financial Inc. Notes,
2,160 8.00%, 12/15/98 2,232
IBM Corp. Notes,
1,000 6.375%, 11/01/97 1,004
International Lease Finance Corp.,
900 Medium Term Notes, 6.375%, 11/01/96 902
Lehman Brothers Holdings, Inc. Debentures:
400 Zero Coupon, 5/16/96 399
3,000 8.875%, 11/01/98 3,149
1,000 9.875%, 10/15/00 1,097
Lehman Brothers Holdings, Inc. Notes,
1,255 8.375%, 2/15/99 1,305
Lehman Brothers, Inc. Senior Subordinated Notes,
202 10.00%, 5/15/99 219
MONY Funding, Inc. Debentures:
4,245 8.25%, 10/29/96 4,282
700 8.125%, 4/07/97 711
Pacific Gas & Electric Corp. Eurodollar
1,435 Debentures, 12.00%, 1/09/00 1,484
Paine Webber Group, Inc. Medium Term Notes,
1,000 5.45%, 1/28/98 980
Salomon, Inc. Medium Term Notes,
2,000 7.87%, 12/30/96 2,023
Salomon, Inc. Senior Notes,
800 7.75%, 5/15/00 809
Smith Barney Holdings Inc. Notes,
3,150 5.625%, 11/15/98 3,089
Soyland Power Coop, Inc.,
1,750 9.63%, 9/30/11 1,881
2,500 9.70%, 9/30/17 2,712
Tennessee Gas Pipeline Co. Debentures,
1,123 9.25%, 5/15/96 1,124
Transamerica Financial Group, Inc.
200 Subordinate Debentures, 8.125%, 10/15/96 202
--------
55,092
--------
Mortgage-Backed Securities 15.1%
Citicorp Mortgage Securities, Inc. Real
Estate Mortgage Investment Conduit,
Series 1991-7, Class M,
1,013 8.75%, 5/25/21 1,019
EQCC Home Equity Loan Trust, Series 1994-3,
1,332 Class A1, 6.34%, 1/15/04 1,332
SHORT-TERM BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
MORTGAGE-Backed Securities 15.1% (cont.)
GE Home Equity Loan Asset-Backed Certificates,
$ 709 Series 1991-1, Class A, 7.20%, 9/15/11 $ 715
Green Tree Financial Corp. Pass-Thru Certificates,
675 Series 1993-4, Class A-2, 5.85%, 1/15/19 666
Household Finance Corp. Home Equity Loan
Asset-Backed Certificates:
950 Series 1991-2, Class A3, 7.25%, 8/19/06 964
4,620 Series 1992-2, Class A3, 5.25%, 10/20/07 4,588
Merrill Lynch Mortgage Investors, Inc.,
1,212 Series 1992-B, Class A4, 7.85%, 4/15/12 1,236
Morgan Stanley Mortgage Trust,
747 Series 40, Class 6, 7.00%, 1/20/97 747
Prudential-Bache CMO Trust, Series 8, Class E,
2,053 7.965%, 3/1/18 2,078
Prudential Home Mortgage Securities,
1,276 Series 1993-24, Class A1, 5.50%, 7/25/00 1,248
Resolution Trust Corp.:
98 Series 1992-MH1, Class A1, 7.00%, 4/15/97 98
1,642 Series 1992-MH2, Class A1, 7.00%, 2/15/19 1,644
Security Pacific Acceptance Corp.:
1,663 Series 1992-2, Class A2, 7.10%, 6/15/12 1,678
2,500 Series 1992-2, Class A3, 7.50%, 6/15/12 2,557
Security Pacific Home Equity Loan:
1,350 Series 1991-1, Class B, 8.85%, 5/15/98 1,401
3,466 Series 1991-2, Class B, 8.15%, 6/15/20 3,510
US Home Equity Loan Certificates:
2,170 Series 1991-2, Class A, 8.50%, 4/15/21 2,209
2,200 Series 1991-2, Class B, 9.125%, 4/15/21 2,268
--------
29,958
--------
International/Yankee (U.S. $ Denominated) 3.1%
Ford Capital BV Debentures,
2,010 9.00%, 8/15/98 2,116
Hydro-Quebec Debentures,
1,250 13.375%, 2/15/13 1,444
Ontario (Province of) Debentures,
2,250 17.00%, 11/05/11 2,516
--------
6,076
--------
Other 3.5%
California State Water Department,
2,000 Series E, 9.875%, 12/01/24 2,217
Florida Housing Finance Agency:
450 Antigua Club-A-2, 8.625%, 8/01/01 480
425 Brittany Apartments-C-2, 8.625%, 8/01/02 456
550 Maitland Club-B-2, 8.625%, 8/01/01 587
St. Louis, Missouri Airport Revenue Notes, Series 1993A,
3,250 5.50%, 7/01/98 3,201
--------
6,941
--------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
U.S. Government Agency and
Agency-Backed Issues 13.1%
Federal Home Loan Mortgage Corporation (FHLMC)
Participation Certificates:
$ 108 7.00%, 12/01/01 $ 108
192 7.75%, 7/01/09 195
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduits (REMIC):
1,959 Series 1269, Class E, 7.00%, 5/15/97 186
1,959 Series 1153, Class F, 7.75%, 10/15/98 1,982
1,000 Series 1243, Class K, 7.50%, 8/15/01 1,021
1,500 Series 1697, Class PN, 5.60%, 6/15/02 1,486
1,700 Series 1733, Class PB, 6.45%, 1/15/11 1,701
Federal National Mortgage Association (FNMA) Real
Estate Mortgage Investment Conduits (REMIC):
1,338 Series 1993-36, Class E, 7.50%, 3/25/98 1,352
1,443 Series 1993-155, Class K, 5.85%, 7/25/98 1,435
1,250 Series 1992-140, Class HB, 6.50%, 10/25/99 1,246
4,640 Series 1992-G54, Class VB, 7.50%, 12/25/99 4,724
2,741 Series X-19A, Class A, 6.50%, 10/25/00 2,726
2,000 Series 1993-G06, Class K, 7.00%, 11/25/01 1,983
2,100 Series 1992-G40, Class D, 7.00%, 3/25/03 2,104
1,000 Series 1993-173, Class D, 5.25%, 3/25/03 977
Federal National Mortgage Association (FNMA)
Stripped Mortgage-Backed Securities, Series
938 1989-75, Class C, 0.0%, 9/25/18 886
Government Trust Certificates, Series 2D,
1,824 9.25%, 11/15/96 1,837
--------
25,949
--------
U.S. Treasury Obligations 13.7%
U.S. Treasury Notes:
1,300 8.875%, 2/15/99 1,387
4,600 6.75%, 5/31/99 4,662
19,750 8.50%, 2/15/00 21,151
--------
27,200
--------
Total Long-Term Investments (Cost $196,833) 194,841
--------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 1.3%
Investment Companies 1.3%
10 Financial Square Prime Obligation Fund 10
2,495 Short-Term Investments Co. Liquid Assets Portfolio 2,495
--------
Total Short-Term Investments (Cost $2,505) 2,505
--------
Total Investments 99.5% (Cost $199,338) 197,346
--------
Other Assets, less Liabilities 0.5% 988
--------
Total Net Assets $198,334
========
See notes to the financial statements.
INTERMEDIATE BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
LONG-TERM INVESTMENTS 95.5%
Asset-Backed Securities 24.6%
Auto Loan Receivables 5.0%
Ford Credit Grantor Trust, Series 1994-A,
$ 727 Class A, 6.35%, 5/15/99 $ 730
General Motors Acceptance Corp. Grantor
1,654 Trust, Series 1995-A, Class A, 7.15%, 3/15/00 1,673
Keycorp Auto Grantor Trust, Series 1995-A,
1,937 Class A, 5.80%, 7/15/00 1,934
Premier Auto Trust:
1,036 Series 1993-5, Class A2, 4.22%, 3/02/99 1,016
2,318 Series 1994-1, Class A3, 4.75%, 2/02/00 2,289
576 Series 1994-2, Class A4, 6.00%, 5/02/00 575
--------
8,217
--------
Credit Card Receivables 19.6%
AT&T Universal Card MasterTrust, Series 1995-2,
1,000 Class A, 5.95%, 10/17/02 975
American Express Master Trust, Series 1994-2,
2,000 Class A, 7.60%, 8/15/02 2,064
Banc One Credit Card Master Trust, Series 1995-B,
3,700 Class A, 6.30%, 10/15/02 3,659
Discover Card Master Trust I:
1,000 Series 1993-2, Class A, 5.40%, 11/16/01 978
500 Series 1993-3, Class A, 6.20%, 5/16/06 476
First Chicago Master Trust II, Series 1994-L,
3,675 Class A, 7.15%, 4/15/01 3,743
Household Affinity Credit Card Master Trust I,
2,900 Series 1993-2, Class A, 5.60%, 5/15/02 2,803
MBNA Master Credit Card Trust:
1,200 Series 1993-3, Class A, 5.40%, 9/15/00 1,173
500 Series 1995-D, Class A, 6.05%, 11/15/02 491
745 Series 1995-F, Class A, 6.60%, 1/15/03 746
NationsBank Credit Card Master Trust,
2,500 Series 1995-1, Class A, 6.45%, 4/15/03 2,488
Private Label Credit Card Master Trust II,
2,000 Series 1994-2, Class A, 7.80%, 9/20/03 2,064
Sears Credit Account Master Trust,
5,900 Series 1994-1, Class A, 7.00%, 1/15/04 6,000
Standard Credit Card Master Trust,
4,800 Series 1993-3, Class A, 5.50%, 2/7/00 4,691
--------
32,351
--------
Corporate Bonds 37.1%
American General Finance Corp. Notes,
1,000 8.00%, 2/15/00 1,040
BankAmerica Corp. Subordinated Notes,
1,500 10.00%, 2/01/03 1,725
Bankers Trust - NY, Subordinated Debentures,
1,000 9.50%, 6/14/00 1,089
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
CORPORATE Bonds 37.1% (cont.)
Bear Stearns Company Senior Notes:
$2,498 7.625%, 9/15/99 $2,564
1,312 6.75%, 8/15/00 1,305
2,000 9.375%, 6/01/01 2,198
Caterpillar, Inc. Debentures,
1,150 9.75%, 6/01/19 1,282
Chase Manhattan Corp. Debentures,
1,015 10.00%, 6/15/99 1,107
Chase Manhatten Corp. Subordinated Notes,
1,000 8.65%, 2/13/99 1,052
Chemical Banking Corp. Subordinated Capital
1,175 Notes, 9.75%, 6/15/99 1,275
Chrysler Financial Corp. Debentures:
750 13.25%, 10/15/99 898
700 12.75%, 11/01/99 824
Chrysler Corp. Notes,
1,596 10.40%, 8/01/99 1,675
Consolidated Edison Co. Debentures,
100 7.60%, 1/15/00 102
Deseret Generation & Transmission Coop
750 Debentures, 9.375%, 1/02/11 795
Fleet Mortage Group Notes,
2,280 6.50%, 6/15/00 2,248
Ford Motor Credit Co. Notes,
2,390 5.625%, 12/15/98 2,337
General Motors Acceptance Corp. Debentures,
1,000 8.625%, 6/15/99 1,054
General Motors Acceptance Corp. Notes,
1,050 8.00%, 10/01/99 1,087
General Motors Corp. Debentures,
1,000 9.625%, 12/01/00 1,103
Goldman Sachs Group Notes,
5,000 6.25%, 2/01/03 4,708
Heller Financial, Inc. Notes,
1,300 9.375%, 3/15/98 1,365
Household Finance Co. Subordinated Debentures,
2,468 9.55%, 4/01/00 2,683
International Lease Finance Corp. Medium Term Notes:
500 8.25%, 10/19/98 520
2,000 5.92%, 1/15/98 1,989
Lehman Brothers Holdings, Inc. Notes:
1,500 8.375%, 2/15/99 1,560
2,000 6.90%, 7/15/99 1,998
Lehman Brothers, Inc. Senior
1,715 Subordinated Notes, 10.00%, 5/15/99 1,863
Midland America Capital Corp. Debentures,
1,540 12.75%, 11/15/03 1,752
Midland Bank PLC Subordinated Notes,
1,700 6.95%, 3/15/11 1,592
INTERMEDIATE BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
CORPORATE BONDS 37.1% (cont.)
MONY Funding, Inc. Debentures:
$2,130 8.25%, 10/29/96 $ 2,149
1,325 8.125%, 4/07/97 1,347
Paine Webber Group, Inc. Subordinated
1,000 Medium Term Notes, 7.70%, 2/11/00 1,017
Salomon, Inc. Medium Term Notes,
1,000 7.87%, 12/30/96 1,011
Salomon, Inc. Senior Notes,
1,450 7.75%, 5/15/00 1,466
SCE Capital Corp. Notes,
1,000 7.375%, 12/15/03 1,021
Charles Schwab Corp. Medium Term Notes,
650 6.06%, 10/02/00 624
Security Pacific Corp. Subordinated Notes,
2,147 9.75%, 5/15/99 2,311
Smith Barney Holdings, Inc. Notes:
2,250 5.50%, 1/15/99 2,194
1,000 6.625%, 6/01/00 991
Tennessee Gas Pipeline Co. Debentures,
600 6.00%, 12/15/11 504
--------
61,425
--------
Mortgage-Backed Securities 2.9%
Security Pacific Acceptance Corp., Series 1991-2,
804 Class B, 8.55%, 9/15/11 827
Security Pacific Home Equity Loan:
1,000 Series 1991-1, Class B, 8.85%, 5/15/98 1,038
2,944 Series 1991-2, Class B, 8.15%, 6/15/20 2,981
--------
4,846
--------
International/Yankee (U.S. $ Denominated) 2.7%
Bank Nova Scotia Subordinated Debentures,
700 9.00%, 10/01/99 746
Ford Capital BV Debentures,
2,258 10.125%, 11/15/00 2,531
Nova Scotia (Province of) Debentures,
1,000 11.50%, 5/15/13 1,130
--------
4,407
--------
Taxable Municipal 1.0%
St. Louis, Missouri Airport Revenue Notes,
1,800 5.30%, 7/01/98 1,766
--------
U.S. Government Agency and
Agency-Backed Issues 9.6%
Federal Home Loan Mortgage Corporation (FHLMC)
Government National Mortgage Association (GNMA)
Real Estate Mortgage Investment Conduit (REMIC)
Pass-Thru Certificates, Series 8, Class VB,
1,000 7.00%, 1/25/04 1,000
--------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
U.S. GOVERNMENT Agency and
Agency-Backed Issues 9.6% (cont.)
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC)
Pass-Thru Certificates:
$ 500 Series 1339, Class B, 8.00%, 7/15/22 $ 512
1,000 Series 1289, Class PR, 7.50%, 2/15/03 1,020
1,298 Series 1456, Class LA, 7.50%, 5/15/03 1,323
Federal National Mortgage Association (FNMA)
1,200 Medium Term Notes, 8.25%, 5/16/05 1,201
Federal National Mortgage Association (FNMA)
3,000 Pass-Thru Certificates, Pool #160173, 10/01/98 3,019
Federal National Mortgage Association (FNMA)
Guaranteed Real Estate Mortgage Investment
Conduit (REMIC) Pass-Thru Certificates,
800 Series 1993-23, Class PU, 7.50%, 1/25/00 816
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC)
Pass-Thru Certificates:
500 Series 1992-73, Class L, 7.50%, 1/25/01 509
3,000 Series 1993-37, Class B, 7.00%, 7/25/02 3,002
U.S. Department of Veterans Affairs Mortgage
Trust REMIC:
3,000 Series 1993-1, Class G, 7.00%, 2/15/00 3,043
500 Series 1992-2, Class J, 7.00%, 3/15/01 506
--------
15,951
--------
U.S. Treasury Obligations 17.6%
U.S. Treasury Bonds:
2,500 10.75%, 2/15/03 3,062
16,150 11.875%, 11/15/03 21,101
3,850 10.75%, 8/15/05 4,905
--------
29,068
--------
Total Long-Term Investments (Cost $158,959) 158,031
--------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 2.7%
Investment Companies 2.7%
10 Financial Square Prime Obligation Fund 10
4,407 Short-Term Investments Co. Liquid Assets Portfolio 4,407
--------
Total Short-Term Investments (Cost $4,417) 4,417
--------
Total Investments (Cost $163,376) 98.2% 162,448
--------
Other Assets, less Liabilities 1.8% 2,933
--------
TOTAL NET ASSETS 100.0% $165,381
========
See notes to the financial statements.
TAX-EXEMPT INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
GENERAL OBLIGATION 7.1%
Racine, Wisconsin Unified School District,
$ 150 4.80%, 4/01/01 $ 151
Rocklin, California Unified School District,
1,235 6.70%, 9/01/04 1,348
Washington State:
1,000 6.30%, 9/01/02 1,076
100 6.75%, 10/01/01 107
--------
Total General Obligation (Cost $2,704) 2,682
--------
REVENUE BONDS 8.1%
Housing 5.5%
Saint Charles, Illinois, Industrial Development -
Covington Ct Project, Mandatory Put
980 9/01/98, 5.50%, 12/01/09 1,000
South Dakota Housing Development Authority -
1,105 Homeownership Mortgage, 4.85%, 5/01/01 1,095
--------
Other 0.5%
Georgia State Municipal Electric Authority,
200 4.50%, 1/01/00 198
--------
University 0.9%
New England Education Student Loan Marketing
310 Corporation, 5.80%, 3/01/02 319
--------
Water & Sewer 1.2%
Vancouver, Washington Water and Sewer Revenue,
455 5.10%, 5/01/96 455
--------
Total Revenue Bonds (Cost $3,067) 3,067
--------
PREREFUNDED AND ESCROWED
TO MATURITY 73.0%
Alaska State Housing Finance Corporation,
1,465 6.375%, 12/01/12, Prerefunded 12/01/02 1,585
Birmingham, Alabama Waterworks And Sewer,
550 7.20%, 1/01/19, Prerefunded 1/01/00 606
Central Lake County, Illinois Joint Action,
720 7.00%, 5/01/19, Prerefunded 5/01/00 793
Chicago, Illinois Motor Fuel Tax Revenue,
1,000 7.05%, 1/01/07, Prerefunded 1/01/01 1,111
Chicago Illinois Public Building, Community
College District No. 508-B, Escrowed to Maturity,
1,000 7.90%, 1/01/98 1,045
Clark County, Nevada School District,
345 7.00%, 6/01/09, Prerefunded 6/01/01 382
Convention Center Authority - Rhode Island
1,000 Revenue, 6.65%, 5/15/12, Prerefunded 5/15/01 1,100
Du Page, Illinois Community Water Revenue Bond,
1,000 6.88%, 5/01/14, Prerefunded 5/01/97 1,049
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
PREREFUNDED AND ESCROWED
TO MATURITY 73.0% (cont.)
Farmington, New Mexico Power Revenue Bonds,
$ 575 9.875%, 1/01/13, Prerefunded 7/01/05 $ 768
Fruita, Colorado, Escrowed to Maturity:
500 9.25%, 10/01/01 573
500 9.25%, 4/01/03 611
Georgia Municipal Electric Authority Power Revenue,
1,000 8.125%, 1/01/17, Crossover Refunded 7/01/05 1,072
Illinois Educational Facilities Authority Chicago
College Of Osteopathic Medicine, Escrowed
590 To Maturity, 8.75%, 7/01/99 643
Illinois Educational Facilities Authority - Loyola
2,355 University, 7.125%, 7/01/21, Prerefunded 7/01/01 2,645
Illinois Educational Facilities Authority -
Swedish-American Hospital, 7.40%, 4/01/20,
1,035 Prerefunded 4/01/00 1,153
Kenosha, Wisconsin Unified School District Promissary
500 Notes, Escrowed to Maturity, 5.40%, 4/01/97 506
Maricopa County, Arizona School District No. 1, Phoenix
1,000 Elementary, 6.60%, 7/01/03, Prerefunded 7/01/01 1,092
Maricopa County, Arizona School District No. 11, Peoria
1,000 University, 7.00%, 7/01/05, Prerefunded 7/01/01 1,102
Metropolitan Nashville Airport, 7.75%, 7/01/07,
500 Prerefunded 7/01/01 576
Michigan State Hospital Financial Authority
Sisters Of Mercy Health Corp., 7.50%,
870 2/15/18, Prerefunded 2/15/01 985
Nevada State,
1,300 6.20%, 5/01/04, Prerefunded 5/01/01 1,393
New Jersey State Turnpike Authority Revenue
50 Refunding, Escrowed to Maturity, 6.75% 1/01/09 53
Oklahoma State Industrial Authority Revenue
St. Anthony Hospital, Escrowed to Maturity,
1,175 6.125%, 6/01/03 1,235
Philadelphia, Pennsylvania, Regional Port Authority,
Lease Revenue Bonds, 7.15%, 8/01/20,
1,000 Prerefunded 8/01/00 1,095
Snohomish County, Washington - Public Hospital,
Stevens Memorial Hospital, 6.85%, 12/01/11,
1,000 Prerefunded 12/01/01 1,102
Tucson, Arizona Street & Highway User Revenue Bonds,
1,000 Escrowed to Maturity, 9.25%, 7/01/02 1,237
University of Illinois, Escrowed to Maturity,
1,005 6.10%, 10/01/03 1,087
Wausau, Wisconsin School District,
1,000 6.50%, 4/01/10, Prerefunded 4/01/02 1,084
Williston, North Dakota, Escrowed To Maturity,
80 6.00%, 6/01/98 82
--------
Total Prerefunded and Escrowed to Maturity
(Cost $27,532) 27,765
--------
TAX-EXEMPT INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
INSURED BONDS 8.4%
Education 0.6%
Merrillville, Indiana, Multi-School Building
$ 200 Corporation, 6.375%, 7/01/03 $ 216
--------
General Obligation 4.8%
Camden, New Jersey,
900 6.15%, 2/15/00 948
Chicago, Illinois,
675 11.60%, 1/01/01 867
--------
Public Facilities & Improvements 2.7%
Illinois State Certificates of Participation,
1,000 6.00%, 7/01/06 1,050
--------
Water and Sewer 0.3%
100 Pima County, Arizona, Sewer, 6.20%, 7/01/00 106
--------
Total Insured Municipal Bonds (Cost $3,197) 3,187
--------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
INVESTMENT COMPANIES 1.9%
10 Financial Square Tax-Exempt Money Market $ 10
733 Tax Free Investment Trusts 733
--------
Total Investment Companies (Cost $743) 743
--------
Total Investments 98.5% (Cost $37,243) 37,444
--------
Other Assets, less Liabilities 1.5% 570
--------
TOTAL NET ASSETS 100.0% $38,014
========
See notes to the financial statements.
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
LONG-TERM INVESTMENTS 96.3%
Asset-Backed Securities 20.4%
Auto Loan Receivables 3.4%
Capital Auto Receivables Asset Trust,
$ 334 Series 1993-2, Class A4, 4.70%, 5/15/97 $ 334
General Motors Acceptance Corp. Grantor Trust,
2,205 Series 1995-A, Class A, 7.15%, 3/15/00 2,230
Premier Auto Trust:
667 Series 1993-3, Class A3, 4.90%, 12/15/98 663
1,176 Series 1993-5, Class A2, 4.22%, 3/02/99 1,153
Premier Auto Trust, Series 1993-6,
905 Class B, 4.875%, 11/02/99 893
Ford Credit Auto Loan Master Trust, Series 1995-1,
7,000 Class A, 6.50%, 8/15/02 6,955
--------
12,228
--------
Credit Card Receivables 17.0%
AT&T Universal Master Card Trust, Series 1995-2,
1,810 Class A, 5.95%, 10/17/02 1,765
Bank One Credit Card Master Trust, Series 1995-B,
8,000 Class A, 6.30%, 10/15/02 7,912
Chrysler Financial Corp. Grantor Trust, Series 17,
395 Class A, 6.25%, 3/15/02 394
Discover Card Master Trust I, Series 1993-2,
14,600 Class A, 5.40%, 11/16/01 14,281
First Chicago Master Trust II, Series 1994-L,
8,500 Class A, 7.15%, 4/15/01 8,658
Household Affinity Credit Card Master Trust I,
3,750 Series 1993-2, Class A, 5.60%, 5/15/02 3,624
MBNA Master Credit Card Trust, Series 1995-F,
2,525 Class A, 6.60%, 1/15/03 2,527
Private Label Credit Card Master Trust II,
2,600 Series 1994-2, Class A, 7.80%, 9/20/03 2,683
Sears Credit Account Master Trust:
11,750 Series 1994-1, Class A, 7.00%, 1/15/04 11,948
2,200 Series 1995-3, Class A, 7.00%, 10/15/04 2,236
Standard Credit Card Master Trust, Series 1993-3,
2,445 Class A, 5.50%, 2/07/00 2,389
NationsBank Credit Card Master Trust,
3,130 Series 1995-1, Class A, 6.45%, 4/15/03 3,115
--------
61,532
--------
Corporate Bonds 37.5%
Barclays North America Capital Corp. Debentures,
1,500 9.75%, 5/15/21 1,678
Barnett Banks Subordinated Notes,
869 8.50%, 3/01/99 909
BankAmerica Corp. Subordinated Notes,
3,360 10.00%, 2/01/03 3,863
Bear Stearns Co. Notes,
63 6.50%, 6/15/00 62
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
Corporate Bonds 37.5% (cont.)
Bear Stearns Co. Senior Notes:
$ 3,026 7.625%, 9/15/99 $3,106
500 6.75%, 8/15/00 498
Burlington Northern Railroad Company
500 Equipment Trust Certificates, 11.85%, 1/15/99 564
Citicorp Debentures,
2,541 9.75%, 8/01/99 2,760
Citicorp Subordinated Notes,
366 9.00%, 4/15/99 389
2,265 10.75%, 12/15/15 2,349
Chase Manhattan Corp. Debentures,
5,458 10.00%, 6/15/99 5,955
Chemical Banking Corp. Subordinated Capital
4,081 Notes, 9.75%, 6/15/99 4,429
Chase Manhattan Corp. Subordinated Notes,
525 8.65%, 2/13/99 553
Continental Bank Subordinated Notes,
683 12.50%, 4/01/01 836
Chrysler Financial Corp. Debentures:
7,563 13.25%, 10/15/99 9,052
1,850 12.75%, 11/01/99 2,177
Deseret Generation & Transmission Coop
2,275 Debentures, 9.375%, 1/02/11 2,411
Federal Express Corp. Debentures,
2,163 9.625%, 10/15/19 2,388
First Chicago Subordinated Notes:
3,789 9.00%, 6/15/99 4,041
560 9.875%, 8/15/00 623
First National Bank Chicago Pass-Thru Certificates,
1,100 8.08%, 1/05/18 1,147
First National Bank Omaha Subordinated Notes,
3,000 7.32%, 12/01/10 2,827
First USA Bank Notes,
500 5.75%, 1/15/99 487
Ford Motor Co. Notes,
700 7.50%, 11/15/99 716
Ford Motor Credit Co. Medium Term Notes:
5,000 8.45%, 12/30/98 5,224
1,377 8.875%, 6/15/99 1,463
300 8.375%, 1/15/00 315
General Motors Acceptance Corp. Medium Term Notes:
1,000 7.50%, 7/22/99 1,023
1,250 8.00%, 10/01/99 1,294
Georgia Pacific Corp. Debentures:
1,011 9.50%, 12/01/11 1,150
1,500 9.50%, 2/15/18 1,558
Goldman Sachs Group Notes,
10,000 6.25%, 2/01/03 9,417
Household Finance Co. Senior Subordinated Notes,
2,625 9.625%, 7/15/00 2,871
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
CORPORATE BONDS 37.5% (cont.)
Heller Financial, Inc. Notes,
$9,045 9.375%, 3/15/98 $ 9,501
International Lease Finance Corp. Medium Term
3,500 Notes, 9.82%, 12/14/98 3,773
Lehman Brothers Holdings, Inc. Debentures,
2,495 8.875%, 11/01/98 2,619
Lehman Brothers Holdings, Inc. Notes:
1,700 6.90%, 7/15/99 1,698
250 8.875%, 2/15/00 265
Lehman Brothers, Inc. Senior Subordinated Notes,
6,740 10.00%, 5/15/99 7,323
Midland America Capital Corp. Debentures,
3,479 12.75%, 11/15/03 3,957
MONY Funding, Inc. Debentures,
5,050 8.125%, 4/07/97 5,133
NCNB Corp. Subordinated Notes,
2,850 10.20%, 7/15/15 3,518
Pacific Gas & Electric Corp. Eurodollar Debentures,
990 12.00%, 1/09/00 1,024
SCE Capital Corp. Notes,
1,100 7.375%, 12/15/03 1,124
Charles Schwab Corp. Medium Term Notes:
2,000 5.84%, 9/30/99 1,934
2,250 5.90%, 10/01/99 2,180
Security Pacific Corp. Subordinated Notes,
301 9.75%, 5/15/99 324
Tennessee Gas Pipeline Co. Debentures,
3,993 6.00%, 12/15/11 3,357
Salomon, Inc. Medium Term Notes,
600 7.87%, 12/30/96 607
Salomon, Inc. Senior Notes,
2,850 7.75%, 5/15/00 2,881
Union Camp Corp. Debentures,
850 10.00%, 5/01/19 959
Unicom Corp. 1st Mortgage Bonds,
3,500 9.50%, 5/01/16 3,644
Westvaco Corp. Debentures,
1,200 10.125%, 6/01/19 1,361
Wal-Mart Stores, Inc. Debentures,
600 7.25%, 6/01/13 577
--------
135,894
--------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
MORTGAGE-BACKED SECURITIES 1.5%
Green Tree Financial Corp.,
$2,116 Series 1993-4, Class A1, 4.85%, 1/15/19 $ 2,100
Household Finance Corp., Home Equity Loan
1,288 Series 1993-2, Class A3, 4.65%, 12/20/08 1,270
Prudential Home Mortgage Securities,
2,319 Series 1993-24, Class A2, 5.50%, 7/25/00 2,116
--------
5,486
--------
International/Yankee (U.S. $ Denominated) 4.1%
British Telecommunications Finance
2,761 Debentures, 9.625%, 2/15/19 3,074
Hydro-Quebec Debentures:
750 9.75%, 1/15/18 831
1,000 11.75%, 2/01/12 1,364
Italy (Republic of) Debentures,
2,000 6.875%, 9/27/23 1,750
National Westminster Bank Debentures,
1,000 9.375%, 11/15/03 1,129
Norsk Hydro A/S Debentures,
2,900 9.00%, 4/15/12 3,228
Quebec (Province of) Debentures,
1,800 11.00%, 6/15/15 2,101
Sweden (Kingdom of) Debentures,
1,100 11.125%, 6/01/15 1,505
--------
14,982
--------
Taxable Municipal 0.6%
New Jersey Economic Development Authority
840 Revenue Bonds, 7.75%, 6/01/02 882
Orange County California Redevelopment
1,295 Agency Tax Allocation Bond, 6.50%, 10/01/03 1,225
--------
2,107
--------
See notes to the financial statements.
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1996
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
U.S. GOVERNMENT AGENCY and
AGENCY-BACKED ISSUES 2.1%
Federal Home Loan Bank (FHLB) Structured Notes,
$1,500 5.03%, 7/28/00 $1,476
Federal Home Loan Mortgage Corp. (FHLMC) Real
Estate Mortgage Investment Conduit (REMIC) Pass-Thru
500 Certificates, Series 1169, Class D, 7.00%, 5/15/21 498
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC),
28 Series 1259, Class IC, 1007.049%, 10/15/05 342
Federal Home Loan Mortgage Corporation (FHLMC)
155 Participation Certificates, Pool #140151, 7.50%, 4/01/07 155
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC)
Pass-Through Certificates:
484 Series 1989-90, Class E, 8.70%, 12/25/19 501
358 Series 1990-72, Class A, 9.00%, 7/25/20 369
538 Series 1990-72, Class B, 9.00%, 7/25/20 568
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC):
9 Series 1992-29, Class K, 977.9167%, 11/25/00 167
23 Series 1992-145, Class N, 1,010.064%, 1/25/06 690
1,300 Series 1989-39, Class C, 0.00%, 6/25/17 1,221
Federal National Mortgage Association (FNMA)
Pass-Thru Certificates,
604 Pool #317, 7.50%, 8/01/07 606
183 Pool #1464, 7.75%, 6/01/08 184
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC)
Pass-Thru Certificates: Series 1993-87, Class KD,
650 6.00%, 6/25/03 625
--------
7,402
--------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- -------------
U.S. TREASURY Obligations 30.1%
U.S. Treasury Bonds:
$ 6,100 10.75%, 2/15/03 $ 7,471
5,150 11.875%, 11/15/03 6,729
1,550 10.75%, 8/15/05 1,975
73,675 9.25%, 2/15/16 90,735
2,100 U.S. Treasury Notes,
6.75%, 5/31/99 2,128
--------
109,038
--------
Total Long-Term Investments (Cost $346,960) 348,669
--------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 2.2%
Investment Companies 2.2%
11 Financial Square Prime Obligation Fund 11
8,159 Short-Term Investments Co. - Liquid Assets Portfolio 8,159
--------
Total Short-Term Investments (Cost $8,170) 8,170
--------
Total Investments 98.5% (Cost $355,130) 356,839
--------
Other Assets, less Liabilities 1.5% 5,308
--------
TOTAL NET ASSETS 100.0% $362,147
========
See notes to the financial statements.
SHORT-TERM BOND MARKET FUND
INTERMEDIATE BOND MARKET FUND
TAX-EXEMPT INTERMEDIATE BOND FUND
BOND IMMDEX/TM FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
1.ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988,
as a Wisconsin Corporation and is registered as an open-end management
investment company under the Investment Company Act of 1940. The Short-Term Bond
Market, Inter mediate Bond Market, Tax-Exempt Intermediate Bond and Bond
IMMDEX/TM Funds (the "Funds") are separate, diversified investment portfolios
of the Company. The Short-Term Bond Market Fund and Bond IMMDEX/TM Fund
commenced operations on December 29, 1989; the Intermediate Bond Market Fund
commenced operations on January 5, 1993; and the Tax-Exempt Inter mediate Bond
Fund commenced operations on February 8, 1993. The objective of the Short-Term
Bond Market Fund is to seek to provide an annual rate of total return, before
Fund expenses, comparable to the annual rate of total return of the Lehman
Brothers 1-3 year Government/Corporate Bond Index. The objective of the
Intermediate Bond Market Fund is to seek to provide an annual rate of total
return, before Fund expenses, comparable to the annual rate of total return of
the Lehman Brothers Intermediate Government/Corporate Bond Index. The objective
of the Tax-Exempt Intermediate Bond Fund is to seek to provide current income
that is substantially exempt from federal income tax and emphasize total return
with relatively low volatility of principal. The objective of the Bond IMMDEX/TM
Fund is to seek to provide an annual rate of total return, before Fund expenses,
comparable to the annual rate of total return of the Lehman Brothers
Government/Corporate Bond Index.
The costs, in thousands, incurred in connection with the organization,
initial registration and public offering of shares aggregating $44, $14, $11 and
$46 for the Short-Term Bond Market, Inter mediate Bond Market, Tax-Exempt
Intermediate Bond and Bond IMMDEX/TM Funds, respectively, have been paid by the
Funds. These costs are being amortized over the period of benefit, but not to
exceed sixty months from each Fund's commencement of operations.
The Company has issued two classes of Fund shares in each of the Funds:
Series A and Series Institutional. The Series A shares are subject to a 0.25%
shareowner service fee and to an initial sales charge imposed at the time of
purchase, in accordance with the Funds' prospectus. The maximum sales charge is
2% of the offering price or 2.08% of the net asset value. Each class of shares
for each Fund has identical rights and privileges except with respect to
shareowner organization fees paid by Series A shares, voting rights on matters
affecting a single class of shares and the exchange privileges of each class of
shares.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a)Investment Valuation - Securities which are traded on a recognized exchange
are valued at the last sale price on the securities exchange on which such
securities are primarily traded or at the last sale price on the national
securities market. Exchange-traded securities for which there were no
transactions are valued at the current bid prices. Securities traded on only
over-the-counter markets are valued on the basis of closing over-the-counter bid
prices. Instruments with a remaining maturity of 60 days or less are valued on
an amortized cost basis which approximates market value. Securities for which
quotations are not readily available and other assets are valued at fair value
as deter mined by the investment adviser under the supervision of the Board of
Directors.
b)Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied to date with the provisions of the Internal
Revenue Code available to regulated investment companies and intend to continue
to so comply in future years.
c)Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, administration and
certain shareowner service fees. Expenses that are not directly attributable to
a portfolio are typically allocated among the Company's portfolios in proportion
to their respective net assets, number of shareowner accounts or net sales,
where applicable. Net investment income other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative net asset value of outstanding shares (or the
value of dividend-eligible shares, as appropriate) of each class of shares at
the beginning of the day (after adjusting for the current day's capital share
activity of the respective class).
d)Distributions to Shareowners - Dividends from net investment income of the
Short-Term Bond Market, Intermediate Bond Market, Tax-Exempt Inter mediate Bond
and Bond IMMDEX/TM Funds are declared and paid monthly. Distributions of net
realized capital gains, if any, will be declared at least annually.
e)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.
f)Other - Investment and shareowner transactions are recorded no later than the
first business day after the trade date. The Funds determine the gain or loss
realized from investment transactions by comparing the original cost of the
security lot sold with the net sale proceeds. Interest income is recognized on
an accrual basis. Discounts and premiums on bonds are amortized over the life of
the respective bond. Generally accepted accounting principles require that
permanent financial reporting and tax differences be reclassified to capital
stock.
3.INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the period ended April 30, 1996, were
as follows:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
---------- ---------- ---------- ----------
Purchases:
U.S. Government $30,271 $25,777 - $ 27,326
Other 86,982 71,172 $8,980 111,486
Sales:
U.S. Government 16,869 51,794 - 20,356
Other 43,029 20,263 4,505 58,046
At April 30, 1996, gross unrealized appreciation and depreciation of investments
for federal income tax purposes, in thousands, were as follows:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
---------- ---------- ---------- ----------
Appreciation $ 620 $1,466 $369 $7,471
(Depreciation) (2,612) (2,395) (169) (5,818)
-------- -------- -------- --------
Net unrealized
appreciation
(depreciation)on
investments $(1,992) $ (929) $200 $1,653
======== ======== ======== ========
At April 30, 1996, the cost of investments, in thousands, for federal income
tax purposes was $199,338, $163,376, $37,245 and $355,186 for the Short-Term
Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond and Bond
IMMDEX/TM Funds, respectively. At October 31, 1995, the Short-Term Bond Market,
Intermediate Bond Market and Tax-Exempt Intermediate Bond Funds had accumulated
net realized capital loss carryovers, in thousands, of $1,248, $1,266 and $140,
respectively, expiring in 2002. The Short-Term Bond Market, Intermediate Bond
Market and Bond IMMDEX/TM Funds had accumulated net realized capital loss
carryovers, in thousands, of $189, $568 and $987, respectively, expiring in
2003. To the extent each Fund realizes future net capital gains, taxable
distributions to its respective shareowners will be offset by any unused capital
loss carryover.
4.CAPITAL SHARE TRANSACTIONS
On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995, Institutional
shareowners exchanged their Series A shares for the Funds' Institutional series
shares. Transactions in capital shares for the Funds, in thousands, were as
follows:
<TABLE>
<CAPTION>
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
--------------- ---------------- --------------- -----------------
Amount Shares Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 1996:
Series A shares:
Shares sold $ 15,942 1,544 $ 3,879 377 $ 3,224 314 $ 15,605 563
Shares issued to owners in
reinvestment
of dividends 1,251 122 216 21 143 14 633 23
Shares redeemed (9,311) (903) (1,264) (123) (1,644) (160) (2,626) (95)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase $ 7,882 763 $ 2,831 275 $ 1,723 168 $ 13,612 491
======== ======== ======== ======== ======== ======== ======== ========
Series Institutional shares:
Shares sold 64,158 6,199 41,605 4,045 5,448 531 63,368 2,273
Shares issued to owners in
reinvestment
of dividends 2,787 271 2,750 269 215 21 8,177 294
Shares redeemed (17,063) (1,662) (19,304) (1,898) (4,312) (421) (24,498) (874)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase $ 49,882 4,808 $ 25,051 2,416 $ 1,351 131 $ 47,047 1,693
======== ======== ======== ======== ======== ======== ======== ========
PERIOD FROM JAN. 10, TO OCT. 31, 1995:
Series A shares:
Reclassification of previous class $113,766 11,467 $ 90,367 9,487 $28,273 2,909 $250,315 9,893
Exchange out to Series
Institutional shares (67,630) (6,818) (82,619) (8,669) (21,916) (2,255) (236,263) (9,338)
Shares sold 10,062 985 5,347 537 2,477 246 8,406 311
Shares issued to owners in
reinvestment
of dividends 1,889 186 257 25 202 20 674 24
Shares redeemed (11,995) (1,179) (2,445) (247) (1,682) (167) (2,814) (104)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase $ 46,092 4,641 $ 10,907 1,133 $ 7,354 753 $ 20,318 786
======== ======== ======== ======== ======== ======== ======== ========
Series Institutional shares:
Exchange in from Series A shares $ 67,630 6,818 $ 82,619 8,669 $ 21,916 2,255 $236,263 9,338
Shares sold 35,067 3,449 50,608 5,053 7,707 762 55,322 2,049
Shares issued to owners in
reinvestment
of dividends 3,077 302 3,251 325 328 33 12,580 467
Shares redeemed (13,589) (1,336) (14,172) (1,422) (3,554) (354) (38,641) (1,421)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase $ 92,185 9,233 $122,306 12,625 $ 26,397 2,696 $265,524 10,433
======== ======== ======== ======== ======== ======== ======== ========
PERIOD FROM NOV. 1, 1994 TO JAN. 9, 1995:
Previous Class:
Reclassification to
Series A shares $(113,766) (11,467) $ (90,367) (9,487) $(28,273) (2,909) $(250,315) (9,893)
Shares sold 2,785 279 5,535 577 6,094 629 8,531 333
Shares issued to owners in
reinvestment
of dividends 1,409 141 863 90 146 15 3,937 156
Shares redeemed (11,467) (1,153) (2,952) (308) (3,967) (410) (15,327) (600)
-------- -------- -------- -------- -------- -------- -------- --------
Net (decrease) $(121,039) (12,200) $ (86,921) (9,128) $(26,000) (2,675) $(253,174) (10,004)
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual rates presented below as
applied to each Fund's daily net assets. For the period ended April 30, 1996,
FIRMCO voluntarily waived the following fees, in thousands, by Fund:
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
-------- -------- -------- --------
Annual rate 0.60% 0.50% 0.50% 0.30%
Fees waived $258 $141 $80 -
Firstar Trust Company, an affiliate of FIRMCO, serves as custodian, transfer
agent and accounting services agent for the Funds.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, calculated 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 period ended
April 30, 1996, $58, $56, $13 and $116 of administration fees, in thousands,
were voluntarily waived for the Short Term Bond Market, Intermediate Bond
Market, Tax-Exempt Intermediate Bond and Bond IMMDEX/TM Funds, respectively.
The Company entered into Servicing Agreements with certain Service
Organizations, including FIRMCO affiliates, for the Series A class of shares.
The Service Organizations are entitled to receive fees from the Funds up to the
annual rate of 0.25% of the average daily net asset value of the Series A shares
for certain support and/or distribution services to customers of the Service
Organizations who are beneficial owners of Series A shares. These services may
include assisting customers in processing purchase, exchange and redemption
requests; processing dividend and distribution payments from the Funds; and
providing information periodically to customers showing their positions in
Series A shares. Service Organization fees, in thousands, paid by the Short-Term
Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond and Bond
IMMDEX/TM Funds to FIRMCO affiliates aggregated $63, $16, $11 and $33,
respectively, for the period ended April 30, 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.
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
For Account Balances and
Investor Services
1-800-228-1024
1-414-287-3808
Portico Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
NASD Ref#X96-0520-021
------------------------------------------------------------------------------
April 30, 1996
SEMI-ANNUAL REPORT
INSTITUTIONAL CLASS
PORTICO FUNDS
BALANCED FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
MIDCORE GROWTH FUND
SPECIAL GROWTH FUND
INTERNATIONAL GROWTH FUND
NOTICE TO INVESTORS
- -Shares of Portico Funds:
- ARE NOT INSURED BY THE FDIC, the US Government or any other governmental
agency;
- are not bank deposits or obligations of or guaranteed by Firstar Bank, its
parent company or its affiliates;
- are subject to investment risks, including possible loss of principal; and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and an
independent third-party distributor.
- -Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
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 THE FINANCIAL STATEMENTS..................................61-66
May 1996
DEAR SHAREOWNER:
INVESTMENT REVIEW
Bond and stock market returns diverged these past six months with the Lehman
Brothers Government/Corporate Bond Index gaining a mere .04%, while the Standard
& Poor's 500 Stock Index jumped 13.8%. Portico's fixed-income funds, which
maintain a duration "neutral" maturity strategy, posted returns which were in-
line with the performance results of each fund's respective index. Portico's
growth equity funds benefited from a shift in stock market investment trends
from "big and passive" (the S&P 500) to small and active management.
The combined assets of your Portico Fund Family today exceed $3.6 billion, a
266% increase from just five years ago. Your fund managers remain committed to
providing above-average risk-adjusted returns over complete market cycles. The
matching of our clearly defined investment strategies and risk profiles to your
unique investment objectives allows the Portico Funds to translate investment
returns into investor returns.
MARKET OUTLOOK
Last December, we stressed the resiliency of the current five-year-old economic
expansion. The first quarter 2.8% real Gross Domestic Product (GDP) report
reinforces our 1996 outlook for continued moderate growth. On the inflation
front, we now believe a cyclical bump in monthly consumer price reports caused
by higher fuel and grain prices will bring annualized inflation in consumer
prices to 3%. With the rise in interest rates so far this year, we find real, or
inflation-adjusted rates across the maturity spectrum. While we continue to
believe interest rates will fall back to lower levels with a corresponding rise
in bond prices, we expect considerable volatility in the bond market for the
balance of 1996. This recent volatility reaffirms our fixed-income investment
policy of remaining duration neutral -- a strategy which allows us to maintain a
consistent management approach and eliminate the temptation to "zig when we
should zag."
Our estimate for a 1996 federal budget compromise was too optimistic, although
the final budget accord does decrease domestic spending for the first time in a
generation -- but at a slower rate than we expected.
Our market outlook is predicated on the following economic and investment
trends:
1.A cyclical bump in monthly consumer price index (CPI) reports bringing
annualized inflation to 3%.
2.Growing foreign investment in U.S. stocks and bonds. According to Federal
Reserve data, U.S. investments overseas of $184 billion from 1990 to 1995,
dwarfs aggregate foreign purchases of U.S. securities of $11 billion. However,
a stronger dollar, along with America's relatively robust economy, favors U.S.
stocks and bonds.
3.Disinflationary productivity gains. Computer memory prices, a good example,
have dropped 50-60% since last summer allowing personal computers to do more
for less money.
4.A continuation of the democratic and republican stalemate with neither party
gaining a clear legislative majority in the November election. However, the
line item veto, Federal Reserve Chairman Greenspan's reappointment, and the
decrease in domestic spending are each investor friendly initiatives.
5.Continued emergence of the United States as the "market of choice" for an
increasingly one market world of global investors. Over the past five years,
retail sales domestically have grown 5% annually while German and Japanese
retail sales were flat.
6.Slow to no corporate profit growth. With the S&P 500 after-tax profit margins
at peak cyclical levels and return on equity at an all-time high, we expect
flat to modest big company profits in 1996.
7.Continued outperformance of our small and active common stock strategy based
on above-market earnings gains and improving valuations (price/earnings
ratios).
8.Treasury bond yields ranging from 6 to 7.5% along with above-average interest
rate volatility. Because real, or inflation-adjusted interest rates remain
attractive, we continue to advocate our core index fixed-income strategy as a
bulwark of investor portfolios.
We appreciate your continued confidence in the Portico Family of Funds and urge
you to read the portfolio reviews that follow.
J. Scott Harkness, CFA Mary Ellen Stanek, CFA
Chairman/Chief President
Investment Officer
Firstar Investment Research & Management Company
BALANCED FUND
- -------------
After an outstanding fiscal 1995, Portico Balanced Fund is off to a strong start
for fiscal year 1996, returning 10.1% for the first six months of this time
period. The investment strategy of the Fund continues to emphasize common stocks
for capital appreciation and fixed-income securities for stability and current
income. Current asset allocation is 61% common stocks, 32% bonds, and 7% money
market.
The equity portion of the portfolio, which benefited from a rebound in retail
holdings, returned 17.3% -- easily surpassing the returns of leading stock
indices. However, the fixed-income portion of the Fund posted a return which was
basically flat -- this was due to the recent rise in interest rates. For
comparison purposes, over the first six months of this reporting period, the
Russell MidCap Index increased 15.1%, the S&P 500 Index increased 13.8% and the
Lehman Brothers Government/Corporate Bond Index was up .04%.
Continued economic expansion with modest interest rate movement and moderate
inflation have been the biggest factors influencing stock prices. This has
allowed corporations to continue to show strong profit growth. On the equity
side, the Fund continues to be overweighted in consumer cyclicals (specifically
retail stocks), finance, healthcare and technology. New holdings over the six
months include Vencor, Inc., PanAmSat Corporation, Teva Pharmaceutical
Industries, Ltd., and Green Tree Financial Corporation.
The fixed-income portion of the Fund currently favors the finance, banking,
brokerage, and asset-backed sectors. Our added-value work in the portfolio
continues to be accomplished in three broad areas: issue selection, sector
allocation, and yield curve positioning. Although the return of the fixed-income
portion was flat during this reporting period, it kept pace with that of the
Lehman Index, which represents the bond market as a whole.
The overall outlook for the Fund for the next six months is positive. Strong
corporate profits, moderate inflation and positive cash flow are all conducive
to rising equity prices. On the bond side, we remain optimistic as interest
rates at current levels are sufficiently high enough to produce attractive real,
or inflation-adjusted yields.
We appreciate your continued support and confidence in Portico Balanced Fund.
PORTFOLIO MANAGER PROFILE
- -------------------------
R. Bart Wear, CFA, Senior Vice President and Senior Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) and Teresa R. Westman, CFA,
Senior Vice President and Senior Portfolio Manager co-manage the Fund, Teresa
since its inception on March 30, 1992, and Bart since January 20, 1994. Bart has
been with Firstar since 1983 and has 13 years of investment management
experience. He received his BS from Arizona State University in 1982. 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. Bart and Teresa are both Chartered
Financial Analysts.
This chart assumes an initial investment of $10,000 made on 3/30/92 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
3/30/92 10/92 10/93 10/94 10/95 4/96
------- ----- ----- ----- ----- -----
PORTICO BALANCED
FUND $10,000 10,372 11,771 11,662 13,969 15,376
This chart assumes an initial investment of $10,000 made on 3/30/92 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
----------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 3/30/92
------------ ------ ------- -------
PORTICO BALANCED FUND 10.1 24.0 12.4 11.1
LEHMAN BROTHERS GOV'T./CORP.
BOND INDEX<F54> 0.0 8.7 5.5 7.7
RUSSELL MIDCAP/TM INDEX<F55> 15.1 30.8 16.9 16.7
S&P 500 STOCK INDEX<F56> 13.8 30.2 17.2 15.7
<F54> 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.
<F55> The Russell Midcap/TM Index is defined as the lowest 800 companies in the
Russell 1000 Index, as ranked by total market capitalization. The Russell
Midcap/TM Index accurately captures the medium-sized universe of securities.
<F56> The S&P 500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS
4/30/96
- -----------------------------------
VENCOR, INC. 2.1%
- -----------------------------------
MIRAGE RESORTS, INC. 1.5%
- -----------------------------------
FIRST USA, INC. 1.4%
- -----------------------------------
CUC INTERNATIONAL, INC. 1.4%
- -----------------------------------
GTECH HOLDINGS CORPORATION 1.3%
- -----------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS
4/30/96
- -----------------------------------
$153,808,800
- -----------------------------------
GROWTH AND INCOME FUND
- ----------------------
Portico Growth and Income Fund is off to a solid start for the first six months
of fiscal 1996. For this time period, the Fund's return of 16.1% outperformed
the returns of the Wilshire Top 750 Index (+13.7%), the Standard & Poor's 500
Index (+13.8%), and the Lipper Growth & Income Fund Index (+13.8%). This strong
relative performance can be attributed to successful sector exposure -- the Fund
was overweighted in companies that produce capital goods and services
(classified as top performing sectors of the Wilshire Top 750) such as Tyco
International Ltd., Dover Corporation, Service Corporation International and
Avery Dennison Corporation and underweighted in two of the poorer performing
sectors: technology and utilities.
Early in this six-month reporting period, we sold holdings in companies which
had reached our price targets and which we believed might be subject to downward
earnings revision given our more moderate outlook for economic growth. These
sales decisions included Hercules, Inc., Kimberly Clark Corporation, and Tribune
Company. We also reduced our exposure to the retail sector after participating
in strong gains in the group. We sold our holdings in The Gap, Inc. and
Nordstrom, Inc. and have reduced holdings in both May Department Stores Company
and Intimate Brands, Inc.
In the last six months, we have added Praxair, Inc., Belden, Inc., and
Cincinnati Bell, Inc. to the portfolio. We believe these companies have the
potential to report solid earnings growth in a slow growth environment, while
trading at price-to-earnings ratios that do not reflect their underlying growth
rates. Additionally, we have continued to emphasize exposure to investment
themes which focus on products and services for the baby boom generation, as
well as products and services that benefit from development in emerging
economies. New investments which should take advantage of baby boomers' savings
and spending habits include Reliastar Financial Corporation (fixed and variable
annuity products), United Asset Management Corporation (money management
services focusing on the employee benefit market), and Northern Trust
Corporation (trust services). Companies in the Fund positioned to gain from
infrastructure spending in emerging economies include General Electric Company
(a provider of power generation equipment, appliances, and industrial products &
systems), Lucent Technologies, Inc. and Motorola, Inc. (designers and
manufacturers of telecommunications equipment worldwide). We have also invested
in Gillette Company, Duracell International, Inc., and Procter & Gamble Company
to profit from the growth in consumer buying power as emerging markets develop.
As we are forecasting moderate economic growth for the second half of 1996, down
from the surprisingly strong increase of +2.8% in the first quarter of 1996, we
will continue to focus on companies with the capability to deliver solid
earnings growth in a more modest growth environment. By consistently employing
the investment philosophy of the Growth and Income Fund, we feel the Fund is
well positioned to achieve its objectives and benefit long-term investors.
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 three 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.
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95 4/96
------- ----- ----- ----- ----- ----- ----- -----
PORTICO GROWTH
AND INCOME FUND $10,000 9,304 11,688 12,368 13,596 13,846 17,307 20,093
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
----------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 5 Years 12/29/89
------------ ------ ------- ------- --------
PORTICO GROWTH AND
INCOME FUND 16.1 31.2 15.1 13.0 11.6
WILSHIRE TOP 750 INDEX<F57> 13.7 31.3 17.3 15.2 13.6
S&P 500 STOCK INDEX <F58> 13.8 30.2 17.2 15.0 13.5
LIPPER GROWTH & INCOME
INDEX<F59> 13.8 27.1 15.4 14.4 12.6
LIPPER EQUITY INCOME
INDEX<F59> 12.4 24.1 13.6 14.0 12.0
<F57> 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.
<F58> The S&P 500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
<F59> The Lipper Growth & Income and Equity Income Indices are equally weighted
indices of the 30 largest mutual funds within their respective investment
objective categories, adjusted for the reinvestment of capital gains
distributions and income dividends.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS
4/30/96
- ---------------------------------------------
PFIZER, INC. 2.7%
- ---------------------------------------------
SERVICE CORPORATION INTERNATIONAL 2.6%
- ---------------------------------------------
TYCO INTERNATIONAL, LTD. 2.6%
- ---------------------------------------------
ALCO STANDARD CORPORATION 2.3%
- ---------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION 2.2%
- ---------------------------------------------
Portfolio holdings are subject to change and are
not a representation of the Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS
4/30/96
- ---------------------------------------------
$256,078,355
- ---------------------------------------------
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 $45.82 on April 30, 1996
represents a return of 13.53% for the six months then ended, which was
comparable with the return of the S&P 500 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.
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 seven years of
investment management experience. He received his B in 1987 and his MBA in 1989
from Marquette University. Dan is a Chartered Financial Analyst.
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95 4/96
Portico Equity -------- ----- ------ ------ ------ ------ ------ ----
Index Fund $10,000 8,854 11,767 12,869 14,644 15,157 19,101 21,692
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 5 Years 12/29/89
------------ ------ ------- ------- --------
PORTICO EQUITY INDEX FUND 13.5 29.7 16.6 14.4 13.0
S&P 500 STOCK INDEX<F60> 13.8 30.2 17.2 15.0 13.5
<F60> The S&P 500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The performance for the Series Institutional shares have
been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 HOLDINGS 4/30/96
- -----------------------------------
GENERAL ELECTRIC 2.5%
- -----------------------------------
EXXON CORPORATION 2.0%
- -----------------------------------
COCA-COLA COMPANY 1.9%
- -----------------------------------
AT&T CORPORATION 1.9%
- -----------------------------------
ROYAL DUTCH PETROLEUM 1.5%
- -----------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/96
- -----------------------------------
$231,770,093
- -----------------------------------
MIDCORE GROWTH FUND
- -------------------
Portico MidCore Growth Fund's performance of 15.6% for the first six months of
fiscal 1996 outpaced the returns of both the Wilshire Top 750 and the S&P 500
indices, which returned 13.7% and 13.8%, respectively. This outperformance was
due in part to a heavier sector weighting exposure in consumer cyclicals and
finance - both of which experienced above market gains. Specifically, retail
stocks, after lagging most of 1995, rebounded based on a stonger consumer and an
acceleration in sales. Despite higher interest rates, finance holdings did well
as a strong economy improved the outlook for fewer credit defaults.
Rather than concentrating on investing in cyclical or defensive sectors, our
focus in the Fund has been on individual stock selection. In particular, we
continue to emphasize companies that can deliver at or above expectation
earnings, despite more difficult comparisons versus 1995. We continue to
overweight finance based on our belief of moderate interest rates and positive
cash flow to asset accumulators. Our enthusiasm for the healthcare sector
centers on a continued migration (aging baby boomers) towards managed care.
While we are currently overweighted in technology, our stock selection is
focused on companies that demonstrate persistent "annuity-like" earnings such
as Ceridian Corporation, Reuters Holding, SunGard Data Systems, Inc., and First
Data Corporation. Based on slowing orders and negative operating leverage, we
have generally avoided semiconductor, software and hardware companies.
The only change in portfolio strategy was the increase in our energy weighting
from 1% to its current level of 5%. This was based on improved fundamentals such
as industry consolidation and rising prices.
The Fund is off to a good start for fiscal 1996 and, given the forecast for
extended economic expansion -- however moderate -- we are optimistic about the
continuation of providing superior returns to relevant indices for the balance
of the year.
PORTFOLIO MANAGER PROFILE
- -------------------------
R. Bart Wear, CFA, Senior Vice President and Senior Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) has managed the Fund since its
inception on December 29, 1992. Bart has been with Firstar since 1983 and has 13
years of investment management experience. He received his BS from Arizona State
University in 1982. Bart is a Chartered Financial Analyst.
12/29/92 10/93 10/94 10/95 4/96
Portico MidCore -------- ----- ----- ----- ----
Growth Fund $10,000 10,753 10,813 12,927 14,941
This chart assumes an initial investment of $10,000 made on 12/29/92
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 12/29/92
------------ ------ ------- --------
PORTICO MIDCORE GROWTH FUND 15.6 30.1 15.9 12.8
WILSHIRE TOP 750 INDEX<F61> 13.7 31.3 17.3 15.8
S&P 500 STOCK INDEX<F62> 13.8 30.2 17.2 16.0
<F61> 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.
<F62> The S&P 500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS 4/30/96
- -----------------------------------
FIRST USA, INC. 3.5%
- -----------------------------------
VENDOR, INC. 3.4%
- -----------------------------------
TYCO INTERNATIONAL, LTD. 3.4%
- -----------------------------------
MBNA CORPORATION 3.4%
- -----------------------------------
GTECH HOLDINGS CORPORATION 3.2%
- -----------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/96
- -----------------------------------
$176,131,238
- -----------------------------------
SPECIAL GROWTH FUND
- -------------------
Buoyed by record mutual fund cash flow and above consensus earnings, the stock
market, as represented by the S&P 500, gained 13.8% for the six-month period
ended April 30, 1996. By comparison, Portico Special Growth Fund gained 15.7%.
Because we contend interim investment results are random (primarily a function
of interest rate and corporate profit changes), we encourage investors to focus
on longer term results. The average annual rate of return chart at the bottom of
the next page provides a longer-term perspective of the Fund's since inception
performance with relevant stock market indices. Portico Special Growth Fund's
price/earnings ratio, a commonly used stock market valuation indicator, is now
21.3 times 1996 earnings, up from 17 times earnings last fall.
During the six months ended April 1996, Dollar General Corporation, Consolidated
Stores Corporation, Health Management Associates, Inc., The Charles Schwab
Corporation and CompUSA, Inc. were among the Fund's top gainers. For the same
time period, Department 56, Inc., Biomet, Inc., Loewen Group, Inc., Toll
Brothers, Inc. and Cellstar Corporation were among the Fund's top losers.
We continue to manage Portico Special Growth Fund for long-term capital
appreciation by selecting owner-operated, unit growth companies with self
funding balance sheets. Portico Special Growth Fund's performance edge over
stock market averages since its inception is largely due to our persistent
adherence to these portfolio management criteria.
PORTFOLIO MANAGER PROFILE
- -------------------------
J. Scott Harkness, CFA, Chief Investment Officer of Firstar Investment Research
& Management Company (FIRMCO), Joseph J. Docter, CFA, Senior Vice President and
Senior Portfolio Manager, Mark D. Westman, CFA, CPA, Vice President and
Portfolio Manager, and Todd M. Krieg, Vice President and Portfolio Manager
manage the Fund - Scott and Joe since its inception on December 28, 1989, Mark
since January 1994 and Todd since September 1994. Scott has been with Firstar
for 17 years and has more than 18 years of investment management experience. He
received his BA from the University of Wisconsin in 1977. Joe has been with
Firstar since 1984 and has 12 years of investment management experience. He
received his BBA and his MBA from the University of Wisconsin in 1981 and 1984,
respectively. Mark has been with Firstar for three years and received his BA
from Augustana College in 1985 and his MBA from the University of Chicago in
1993. Todd has been with Firstar for four years and received his BA from
Williams College in 1983 and a JD from Georgetown University in 1989. Scott, Joe
and Mark are all Chartered Financial Analysts.
12/28/89 10/90 10/91 10/92 10/93 10/94 10/95 4/96
Portico Special -------- ----- ----- ----- ----- ----- ----- ----
Growth Fund $10,000 8,953 14,346 15,617 18,138 18,641 23,449 27,126
This chart assumes an initial investment of $10,000 made on 12/28/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 5 Years 12/28/89
------------ ------ ------- ------- --------
PORTICO SPECIAL
GROWTH FUND 15.7 36.4 18.6 16.7 17.0
WILSHIRE MIDCAP 750 INDEX<F63> 16.5 33.0 18.0 17.5 14.6
S&P 500 STOCK INDEX<F64> 13.8 30.2 17.2 15.0 13.5
<F63> 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.
<F64> The S&P 500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS 4/30/96
- ----------------------------------------
THE CHARLES SCHWAB CORPORATION 2.9%
- ----------------------------------------
VENCOR, INC. 2.7%
- ----------------------------------------
AMTEL CORPORATION 2.7%
- ----------------------------------------
HEATH MANAGEMENT ASSOCIATES, INC. 2.6%
- ----------------------------------------
CONSOLIDATED STORES CORPORATION 2.2%
- ----------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/96
- ----------------------------------------
$614,879,638
- ----------------------------------------
INTERNATIONAL EQUITY FUND
- -------------------------
Portico International Equity Fund seeks capital appreciation through investment
in foreign equity securities of small- to medium-sized companies. The Fund uses
a different approach to investing relative to our actively managed Portico
equity funds. The Fund is comprised of a representative portion of the small- to
medium-sized companies found in the Morgan Stanley Capital International Europe,
Australia and Far East (EAFE) Index. Instead of focusing on the entire index,
the Fund invests in companies with a market capitalization range of $250 million
to $5 billion.
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
April 30, 1996, the International Equity Fund owned 805 companies located
throughout Europe and the Pacific Basin. State Street Global Advisors, with over
16 years of international investing experience and $41 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.
Market conditions over the last six months have improved for the Fund. The
economic recovery in Japan looks to have resumed after a difficult 1995.
Economic growth in Europe will be slow but sustainable, due to continuous
restructuring and cost-cutting measures implemented over the last several years.
The U.S. Dollar has strengthened relative to the Japanese Yen and German
Deutschmarke. Although this has had a negative effect on the Fund's total return
(due to the fact the Fund does not hedge the currency component), we are pleased
with the fund's overall performance as compared with the EAFE Index.
The structured selection process using GDP weightings and small-to medium-sized
market capitalization ranges will not necessarily produce comparable performance
to the EAFE Index, as has been the case since the Fund began operations on April
28, 1994. Nevertheless, we believe that long-term performance of small- to
medium-sized international firms will provide higher total returns than
investments in large international firms or the EAFE Index. As we have
maintained in previous reports, investing internationally continues to be an
effective strategy to diversify your portfolio while offering the potential for
attractive returns over the long term.
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 seven
years of investment management experience. He received his b In 1987 and his MBA
in 1989 from Marquette University. Dan is a Chartered Financial Analyst.
4/28/94 10/94 10/95 4/96
Portico International ------- ----- ----- ----
Equity Fund 10,000 9,995 9,620 10,811
This chart assumes an initial investment of $10,000 made on 4/28/94 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1996
----------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 4/28/94
------------ ------ --------
PORTICO INTERNATIONAL EQUITY FUND 12.4 8.2 4.0
GDP EAFE INDEX<F65> 13.0 11.0 7.1
EAFE INDEX<F66> 13.2 11.4 8.5
<F65> 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.
<F66> The MSCI EAFE Index is the most recognized international index and is
weighted by market capitalization.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The performance for the Series Institutional shares have
been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 COUNTRIES 4/30/96
- -----------------------------------
JAPAN 35.6%
- -----------------------------------
GERMANY 14.7%
- -----------------------------------
FRANCE 10.6%
- -----------------------------------
ITALY 8.6%
- -----------------------------------
GREAT BRITAIN 7.3%
- -----------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/96
- -----------------------------------
$45,678,257
- -----------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
(Amounts in thousands, except per share data)
April 30, 1996 GROWTH AND EQUITY MIDCORE SPECIAL INTERNATIONAL
(Unaudited) BALANCED INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
--------- --------- ------ ------- ------ -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $123,235,
$196,432, $169,789, $122,879,
$448,488 and $43,067, respectively) $152,989 $255,811 $235,122 $177,479 $611,052 $ 45,567
Foreign currency (cost $1,469) - - - - - 1,462
Income receivable 797 387 332 125 237 158
Capital shares sold 29 201 63 29 66 22
Receivable for securities sold 420 217 431 346 6,665 9
Receivable for foreign currency
purchased - - - - - 9
Other assets 16 7 7 13 7 83
-------- -------- -------- -------- -------- --------
Total Assets 154,251 256,623 235,955 177,992 618,027 47,310
-------- -------- -------- -------- -------- --------
LIABILITIES:
Payable for securities purchased 307 285 3,763 1,693 2,599 1,363
Payable for foreign currency purchased - - - - - 9
Capital shares redeemed - 16 - 1 7 -
Payable to affiliates 114 218 90 145 503 201
Accrued expenses and other liabilities 21 26 332 22 38 59
-------- -------- -------- -------- -------- --------
Total Liabilities 442 545 4,185 1,861 3,147 1,632
-------- -------- -------- -------- -------- --------
NET ASSETS $153,809 $256,078 $231,770 $176,131 $614,880 $ 45,678
======== ======== ======== ======== ======== ========
NET ASSETS CONSIST OF:
Capital stock $120,884 $184,319 $164,907 $123,253 417,012 $ 42,965
Undistributed net investment
income (loss) 268 259 314 (13) (313) (3)
Undistributed accumulated net
realized gains (losses) on:
Investments 2,904 12,121 1,027 (1,709) 35,617 223
Unrealized net appreciation
(depreciation) on:
Investments 29,753 59,379 65,334 54,600 162,564 2,500
Futures contracts - - 188 - - -
Foreign currency - - - - - (7)
-------- -------- -------- -------- -------- --------
Total Net Assets $153,809 $256,078 $231,770 $176,131 $614,880 $45,678
======== ======== ======== ======== ======== ========
SERIES A:
Net assets $ 26,315 $ 55,623 $ 29,597 $ 13,849 $107,928 $ 3,053
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000 500,000 500,000
Shares issued and outstanding 952 1,825 646 469 2,535 145
Net asset value and redemption price
per share <F67> $27.64 $30.47 $45.79 $29.53 $42.58 $21.02
====== ====== ====== ====== ====== ======
Maximum offering price per share <F67> $28.79 $31.74 $47.70 $30.76 $44.35 $21.90
====== ====== ====== ====== ====== ======
SERIES INSTITUTIONAL:
Net assets $127,494 $200,455 $202,173 $162,282 $506,952 $ 42,625
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000 500,000 500,000
Shares issued and outstanding 4,611 6,576 4,413 5,483 11,865 2,025
Net asset value, redemption price
and offering price per share <F67> $27.65 $30.48 $45.82 $29.60 $42.73 $21.05
====== ====== ====== ====== ====== ======
<FN>
<F67> Amounts may not recalculate due to rounding.
See notes to the financial statements.
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Amounts in thousands)
BALANCED FUND GROWTH AND INCOME FUND
Six months Year Six months Year
ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31,
1996 1995 1996 1995
--------- ------- ------- --------
(Unaudited) (Unaudited)
OPERATIONS:
Net investment income (loss) $ 1,316 $ 2,444 $ 1,915 $ 2,975
Net realized gain on:
Investments 3,212 3,757 12,179 8,861
Foreign currency - - - -
Change in unrealized appreciation
(depreciation) on:
Investments 8,810 14,596 19,830 28,643
Foreign currency - - - -
-------- -------- -------- --------
Net increase (decrease) in net
assets resulting from operations 13,338 20,797 33,924 40,479
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Shares sold 49,292 51,996 38,562 39,149
Shares issued to owners in
reinvestment of dividends 3,842 2,325 9,902 6,778
Shares redeemed (35,116) (41,011) (20,817) (38,029)
-------- -------- -------- --------
Net increase 18,018 13,310 27,647 7,898
-------- -------- -------- --------
DISTRIBUTIONS TO SHAREOWNERS:<F68>
From net investment income - (540) - (925)
From net realized gains - - - (4,244)
-------- -------- -------- --------
- (540) - (5,169)
-------- -------- -------- --------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS:<F68>
From net investment income (203) (285) (344) (374)
From net realized gains (486) - (1,827) -
-------- -------- -------- --------
(689) (285) (2,171) (374)
-------- -------- -------- --------
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREOWNERS:<F68>
From net investment income (1,073) (1,555) (1,488) (1,711)
From net realized gains (2,169) - (7,010) -
-------- -------- -------- --------
(3,242) (1,555) (8,498) (1,711)
-------- -------- -------- --------
TOTAL INCREASE IN NET ASSETS 27,425 31,727 50,902 41,123
NET ASSETS:
Beginning of period 126,384 94,657 205,176 164,053
-------- -------- -------- --------
End of period (including undistributed
net investment income (loss) of $268,
$226, $259, $175, $314, $245, $(13),
$(1), $(313), $0, $(4) and $156,
respectively) $153,809 $126,384 $256,078 $205,176
======== ======== ======== ========
<F68>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 April 30, 1996.
See notes to the financial statements.
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (continued)
(Amounts in thousands)
INTERNATIONAL
EQUITY INDEX FUND MIDCORE GROWTH FUND SPECIAL GROWTH FUND EQUITY FUND
--------------------- ------------------- ------------------- -------------------
Six months Year Six months Year Six months Year Six months Year
ended ended ended ended ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31,
1996 1995 1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 1,891 $ 2,949 $ (14) $ 145 $ (313) $ (148) $ 19 $ 165
Net realized gain on:
Investments 1,442 1,377 3,361 2,657 36,788 57,101 191 463
Foreign currency - - - - - - 37 225
Change in unrealized appreciation
(depreciation) on:
Investments 19,792 26,047 19,777 20,823 45,292 49,078 4,341 (1,826)
Foreign currency - - - - - - (10) 1
------ ------ ------ ------ ------ ------- ------ ------
Net increase (decrease) in net assets
resulting from operations 23,125 30,373 23,124 23,625 81,767 106,031 4,578 (972)
------ ------ ------ ------ ------ ------- ------ ------
CAPITAL SHARE TRANSACTIONS:
Shares sold 71,091 43,586 30,220 49,755 99,906 130,385 10,217 12,055
Shares issued to owners in
reinvestment of dividends 3,017 2,893 - 222 52,218 2,330 753 59
Shares redeemed (19,022) (24,547) (21,746) (42,006) (83,028) (110,262) (1,839) (2,015)
-------- -------- -------- -------- -------- --------- ------- -------
Net increase 55,086 21,932 8,474 7,971 69,096 22,453 9,131 10,099
-------- -------- -------- -------- -------- --------- ------- -------
DISTRIBUTIONS TO SHAREOWNERS <F68>
From net investment income - (731) - (137) - - - (55)
From net realized gains - (201) - - - (2,526) - (8)
-------- -------- -------- -------- -------- -------- ------- -------
- (932) - (137) - (2,526) - (63)
-------- -------- -------- -------- -------- -------- ------- -------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS <F68>
From net investment income (197) (226) - (1) - - (6) -
From net realized gains (165) - - - (9,689) - (34) -
-------- -------- -------- -------- -------- -------- ------- ------
(362) (226) - (1) (9,689) - (40) -
-------- -------- -------- -------- -------- -------- ------- ------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS <F68>
From net investment income (1,626) (1,941) - (122) - - (174) -
From net realized gains (1,222) - - - (47,791) (45) (637) -
-------- -------- -------- -------- -------- -------- ------- ------
(2,848) (1,941) - (122) (47,791) (45) (811) -
-------- -------- -------- -------- -------- -------- ------- ------
TOTAL INCREASE IN NET ASSETS 75,001 49,206 31,598 31,336 93,383 125,913 12,858 9,064
NET ASSETS:
Beginning of period 156,769 107,563 144,533 113,197 521,497 395,584 32,820 23,756
End of period (including
undistributed net investment
income (loss) of $268, $226, $259,
$175, $314, $245, $(13), $(1),
$(313), $0, $(4) and $156,
respectively) $231,770 $156,769 $176,131 $144,533 $614,880 $521,497 $45,678 $32,820
======== ======== ======== ======== ======== ======== ======= =======
<FN>
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
BALANCED FUND
-------------------------------------------------------------------------------------------
Six months ended Year ended Year ended March 30, 1992<F69>
April 30, 1996 October 31, 1995<F72> October 31, through
Series Series
Series A Institutional Series A Institutional 1994 1993 Oct. 31, 1992
-------- ------------- -------- ------------- ----- ----- --------------
(Unaudited)
<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 0.22 0.25 0.49 0.53 0.44 0.47 0.28
Net realized and unrealized
gains (losses) on securities 2.30 2.30 3.77 3.78 (0.66) 2.27 0.44
------- ------- ------- ------- ------- ------- -------
Total from investment operations 2.52 2.55 4.26 4.31 (0.22) 2.74 0.72
------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.22) (0.25) (0.47) (0.51) (0.44) (0.47) (0.23)
Distributions from capital gains (0.55) (0.55) - - - - -
------- ------- ------- ------- ------- ------- -------
Total distributions (0.77) (0.80) (0.47) (0.51) (0.44) (0.47) (0.23)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $27.64 $27.65 $25.89 $25.90 $22.10 $22.76 $20.49
======= ======= ======= ======= ======= ======= =======
Total return <F73><F74> 9.95% 10.08% 19.55% 19.79% (0.93)% 13.49% 3.72%
Supplemental data and ratios:
Net assets, in thousands, end
of period $26,315 $127,494 $21,832 $104,552 $94,657 $82,099 $45,653
Ratio of net expenses
to average net assets <F75> 1.00% 0.75% 0.94% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income
to average net assets <F75> 1.69% 1.94% 2.05% 2.24% 2.03% 2.24% 2.48%
Portfolio turnover rate <F76> 34.42% 34.42% 61.87% 61.87% 59.77% 71.60% 29.04%
Average commission rate paid <F76> $0.0581 $0.0581
See notes to the financial statements.
FINANCIAL HIGHLIGHTS
GROWTH AND INCOME FUND
---------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F72> Year ended October 31,
Series Series ----------------------------------
Series A Institutional Series A Institutional 1994 1993<F70> 1992 1991
-------- ------------- -------- ------------- ---- ----- ----- ----
(Unaudited)
<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 $17.99
Income from investment operations:
Net investment income 0.21 0.25 0.37 0.42 0.43 0.56 0.69 0.79
Net realized and unrealized gains
(losses) on securities 4.03 4.03 5.14 5.14 (0.03) 1.63 0.56 3.75
------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations 4.24 4.28 5.51 5.56 0.40 2.19 1.25 4.54
------ ------ ------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income (0.20) (0.24) (0.38) (0.42) (0.42) (0.57) (0.70) (0.81)
Distributions from capital gains (1.19) (1.19) (0.60) (0.60) (0.59) (0.19) - -
------ ------ ------ ------ ------ ------ ------ ------
Total distributions (1.39) (1.43) (0.98) (1.02) (1.01) (0.76) (0.70) (0.81)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $30.47 $30.48 $27.62 $27.63 $23.09 $23.70 $22.27 $21.72
====== ====== ====== ====== ====== ====== ====== ======
Total return <F73><F74> 15.96% 16.09% 24.75% 25.00% 1.84% 9.93% 5.82% 25.63%
Supplemental data and ratios:
Net assets, in thousands, end
of period $55,623 $200,455 $42,424 $162,752 $164,053 $160,704 $135,713 $103,414
Ratio of net expenses to average
net assets <F75> 1.15% 0.90% 1.09% 0.90% 0.90% 0.88% 0.75% 0.75%
Ratio of net investment income to
average net assets <F75> 1.46% 1.71% 1.51% 1.70% 1.89% 2.44% 3.16% 3.93%
Portfolio turnover rate <F76> 27.18% 27.18% 47.85% 47.85% 56.85% 86.24% 31.25% 28.05%
Average commission rate paid <F76> $0.0585 $0.0585
See notes to the financial statements.
FINANCIAL HIGHLIGHTS
EQUITY INDEX FUND
-------------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F72> Year ended October 31,
Series Series ----------------------------------
Series A Institutional Series A Institutional 1994 1993<F70> 1992 1991
-------- ------------- -------- ------------- ---- ----- ----- ----
(Unaudited)
<S> <C> <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 $21.63
Income from investment operations:
Net investment income (loss) 0.36 0.42 0.70 0.76 0.77 0.75 0.73 0.73
Net realized and unrealized
gains on securities 5.08 5.09 7.70 7.71 0.35 3.32 1.86 6.31
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations 5.44 5.51 8.40 8.47 1.12 4.07 2.59 7.04
------- ------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.37) (0.42) (0.68) (0.74) (0.75) (0.75) (0.73) (0.74)
Distributions from capital gains (0.35) (0.35) (0.06) (0.06) - - (0.01) (0.06)
------- ------- ------- ------- ------- ------- ------- -------
Total distributions (0.72) (0.77) (0.74) (0.80) (0.75) (0.75) (0.74) (0.80)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $45.79 $45.82 $41.07 $41.08 $33.41 $33.04 $29.72 $27.87
====== ====== ====== ====== ====== ====== ====== ======
Total return <F73><F74> 13.36% 13.53% 25.79% 26.02% 3.51% 13.79% 9.36% 32.90%
Supplemental data and ratios:
Net assets, in thousands, end
of period $29,597 $202,173 $18,663 $138,106 $107,563 $83,820 $81,070 $51,481
Ratio of net expenses
to average net assets <F75> 0.67% 0.42% 0.66% 0.46% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income
to average net assets <F75> 1.73% 1.98% 2.14% 2.34% 2.38% 2.32% 2.48% 2.82%
Portfolio turnover rate <F76> 0.60% 0.60% 4.61% 4.61% 13.28% 13.78% 5.50% 1.38%
Average commission rate paid <F76> $0.0599 $0.0599
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
MIDCORE GROWTH FUND
-------------------------------------------------------------------------------------------
Six months ended Year ended Year Dec. 29, 1992<F69>
April 30, 1996 October 31, 1995<F72> ended through
------------------------ ----------------------- October 31, October 31,
Series A Series Inst'l Series A Series Inst'l 1994 1993
-------- ------------- -------- ------------- ---- -----
(Unaudited)
<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 (loss) (0.03) 0.00 (0.02) 0.03 0.06 0.09
Net realized and unrealized
gains on securities 3.98 3.99 4.16 4.16 0.06 1.32
------ ------ ------ ------ ------ ------
Total from investment operations 3.95 3.99 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 $29.53 $29.60 $25.58 $25.61 $21.47 $21.40
====== ====== ====== ====== ====== ======
Total returns <F73><F74> 15.44% 15.58% 19.31% 19.55% 0.56% 7.53%
Supplemental data and ratios:
Net assets, in thousands,
end of period $13,849 $162,282 $10,105 $134,428 $113,197 $84,467
Ratio of net expenses to
average net assets <F75> 1.15% 0.90% 1.09% 0.90% 0.88% 0.89%
Ratio of net investment income
to average net assets <F75> (0.25)% 0.00% (0.06)% 0.13% 0.30% 0.57%
Portfolio turnover rate <F76> 27.25% 27.25% 49.84% 49.84% 33.24% 46.29%
Average commission rate paid <F76> $0.0588 $0.0588
<FN>
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
SPECIAL GROWTH FUND
-------------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F72> Year ended October 31,
----------------------------------
Series A Series Inst'l Series A Series Inst'l 1994 1993 1992<F71> 1991
-------- ------------- -------- ------------- ---- ----- ----- ----
(Unaudited)
<S> <C> <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 $17.72
Income from investment operations:
Net investment income (loss) (0.05) (0.02) (0.07) 0.00 0.04 0.07 0.17 0.27
Net realized and unrealized
gains on securities 5.82 5.86 8.49 8.49 0.85 4.47 2.18 10.34
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations 5.77 5.84 8.42 8.49 0.89 4.54 2.35 10.61
------- ------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income - - - - (0.04) (0.08) (0.18) (0.28)
Distributions from capital gains (4.59) (4.58) (0.21) (0.21) - (0.62) (1.72) -
------- ------- ------- ------- ------- ------- ------- -------
Total distributions (4.59) (4.58) (0.21) (0.21) (0.04) (0.70) (1.90) (0.28)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $42.48 $42.73 $41.40 $41.47 $33.19 $32.34 $28.50 28.05
====== ====== ====== ====== ====== ====== ====== ======
Total return <F73><F74> 15.53% 16.21% 25.56% 25.79% 2.77% 16.15% 8.86% 60.23%
Supplemental data and ratios:
Net assets, in thousands, end
of period $107,928 $506.952 $87,269 $434,228 $395,584 $347,130 $205,207 $96,017
Ratio of net expenses
to average net assets <F75> 1.14% 0.89% 1.09% 0.90% 0.89% 0.88% 0.76% 0.75%
Ratio of net investment income
to average net assets <F75> (0.32)5 (0.07)% (0.19)% 0.00% 0.13% 0.24% 0.65% 1.10%
Portfolio turnover rate <F76> 58.37% 58.37% 79.25% 79.25% 69.74% 58.80% 31.94% 48.39%
Average commission rate paid <F76> $0.0577 $0.0577
<FN>
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F72> April 28, 1994<F69>
-------------------------------- ------------------------------ through
Series A Series Institutional Series A Series Institutional Oct. 31, 1994
-------- -------------------- --------- -------------------- --------------
(Unaudited)
<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 (loss) (0.01) 0.00 0.08 0.12 0.04
Net realized and unrealized
gains (losses) on securities 2.32 2.33 (0.87) (0.87) (0.05)
------ ------ ------ ------ ------
Total from investment operations 2.31 2.33 (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 $21.02 $21.05 $19.15 $19.19 $19.99
====== ====== ====== ====== ======
Total return <F73><F74> 12.27% 12.38% (3.95)% (3.75)% (0.05)%
Supplemental data and ratios:
Net assets, in thousands,
end of period $3,053 $42,625 $1,633 $31,187 $23,756
Ratio of net expenses
to average net assets <F75> 1.75% 1.50% 1.70% 1.50% 1.49%
Ratio of net investment income
to average net assets <F75> (0.14)% 0.11% 0.46% 0.66% 0.44%
Portfolio turnover rate <F76> 5.37% 5.37% 15.12% 15.12% 6.55%
Average commission rate paid <F76> $.0148 $.0148
<FN>
<F69> Commencement of operations.
<F70> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F71> Effective February 3, 1992, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F72> 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.
<F73> 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, and
for the period ended April 30, 1996, for all Funds.
<F74> The total return does not reflect the 4% front-end sales charge for
Series A.
<F75> 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, and for
the period ended April 30, 1996, for all Funds.
<F76> 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.
<FN>
See notes to the financial statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
(Amounts in thousands)
Six Months Ended April 30, 1996
(Unaudited)
<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 $ 215 $ 2,309 $ 2,030 $ 467 $ 789 -
Foreign (net of withholding
taxes of $44) - - - - - $ 272
Interest income:
Domestic 1,650 700 291 248 1,414 36
------ ------ ------ ------ ------ ------
1,865 3,009 2,321 715 2,203 308
------ ------ ------ ------ ------ ------
EXPENSES:
Investment advisory fees 519 861 241 595 2,020 285
Administration fees 83 138 116 95 323 23
Shareowner servicing and accounting costs 49 67 50 36 123 60
Service organization fees - Series A 30 61 29 15 117 3
Custody fees 27 23 26 20 64 48
Federal and state registration fees 10 9 9 8 14 12
Professional fees 14 14 13 13 14 15
Reports to shareowners 7 13 4 5 21 4
Amortization of organization costs 3 - - 1 - 3
Directors' fees and expenses 3 3 4 2 3 2
Other 4 2 4 1 3 2
------ ------ ------ ------ ------ ------
Total expenses before waiver 749 1,191 496 791 2,702 457
Less: Waiver of expenses (200) (97) (66) (62) (186) (168)
------ ------ ------ ------ ------ ------
Net Expenses 549 1,094 430 729 2,516 289
------ ------ ------ ------ ------ ------
NET INVESTMENT INCOME (LOSS) 1,316 1,915 1,891 (14) (313) 19
------ ------ ------ ------ ------ ------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on:
Investments 3,212 12,179 1,442 3,361 36,788 191
Foreign currency - - - - - 37
Change in unrealized appreciation
(depreciation) on:
Investments 8,810 19,830 19,792 19,777 45,292 4,341
Foreign currency - - - - - (10)
------ ------ ------ ------ ------ ------
Net gain on investments
and foreign currency 12,022 32,009 21,234 23,138 82,080 4,459
------ ------ ------ ------ ------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $13,338 $33,924 $23,125 $23,124 $81,767 $4,578
======= ======= ======= ======= ======= ======
<FN>
See notes to the financial statements
</TABLE>
BALANCED FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market Value
of Shares (in thousands)
- --------- --------------
COMMON STOCKS - 62.7%
Air Transportation - 0.0%
3,300 Atlantic SE Airlines, Inc. $ 82
------
Auto Parts - 0.1%
1,700 APS Holding Corporation<F77> 31
4,400 Copart, Inc.<F77> 120
------
151
------
Bio-Technology - 0.0%
10,600 Perseptive Biosystems, Inc.<F77> 75
------
Business Machines & Software - 0.7%
4,700 Acxiom Corporation<F77> 129
5,100 In Focus Systems, Inc.<F77> 258
4,600 Mylex Corporation<F77> 112
4,500 National Instruments Corporation<F77> 110
3,600 Network General Corporation<F77> 159
6,400 Synopsys, Inc.<F77> 264
------
1,032
------
Business Services - 4.7%
8,700 H & R Block, Inc. 305
34,700 Ceridian Corporation<F77> 1,657
300 Corestaff, Inc.<F77> 12
6,700 Danka Business Systems PLC ADR 322
22,961 First Data Corporation 1,745
2,025 FIserv, Inc.<F77> 62
20,900 General Motors Corporation - Class E 1,178
7,300 Interim Services, Inc.<F77> 317
8,900 Medaphis Corporation<F77> 410
6,700 National Data Corporation 236
29,100 Sungard Data Systems, Inc.<F77> 967
------
7,211
------
Capital Goods - 0.3%
10,400 York International Corporation 499
------
Chemicals - 0.5%
34,200 Airgas, Inc.<F77> 735
------
Communications & Media - 2.9%
8,300 Andrew Corporation<F77> 398
3,300 Evergreen Media Corporation - Class A<F77> 130
14,100 Infinity Broadcasting Corporation<F77> 409
13,100 Interpublic Group of Companies, Inc. 612
55,300 PanAmSat Corporation<F77> 1,839
27,900 Paxson Communications Corporation<F77> 415
8,800 Reuters Holdings, PLC ADR 595
------
4,398
------
Computers - 0.7%
4,700 Ciber, Inc.<F77> 187
3,350 McAfee Associates, Inc.<F77> 205
2,600 Microsoft Corporation<F77> 295
7,200 Reynolds & Reynolds - Class A 333
------
1,020
------
Conglomerates - 0.1%
4,700 ITI Technologies, Inc.<F77> 130
------
Consumer Products - 0.4%
19,000 Newell Company 542
1,200 USA Detergents, Inc.<F77> 49
------
591
------
Consumer Services - 0.1%
3,100 Stewart Enterprises, Inc. - Class A 142
------
Containers - 0.2%
11,000 Sealed Air Corporation<F77> 389
------
Distribution - 1.3%
32,300 Alco Standard Corporation 1,870
5,000 Peak Technologies Group<F77> 121
------
1,991
------
Drugs - 1.9%
1,000 Biovail Corp International<F77> 28
25,000 Elan Corporation, PLC ADR<F77> 1,653
3,000 Forest Laboratories, Inc. - Class A<F77> 138
5,200 Ivax Corporation 152
21,300 Teva Pharmaceutical Industries Ltd. ADR 956
------
2,927
------
Electrical Equipment - 1.6%
55,500 AVX Corporation 1,318
3,200 Cable Design Technologies<F77> 106
9,600 Kemet Corporation<F77> 229
23,687 Molex, Inc. - Class A 711
4,400 PRI Automation, Inc.<F77> 124
------
2,488
------
Electronics - 0.5%
4,400 Checkpoint Systems, Inc.<F77> 132
20,400 KLA Instruments Corporation<F77> 589
5,100 Recoton Corporation<F77> 97
500 Thermoquest Corporation<F77> 8
------
826
------
Entertainment & Leisure - 3.8%
74,000 GTECH Holdings Corporation<F77> 2,100
17,400 Hollywood Entertainment Corporation 287
44,000 Mirage Resorts, Inc.<F77> 2,305
6,400 Movie Gallery, Inc.<F77> 195
5,400 Regal Cinemas, Inc.<F77> 220
5,000 Station Casinos, Inc.<F77> 66
17,436 Viacom, Inc. - Class B<F77> 715
------
5,888
------
Financial Services - 6.5%
6,600 Advanta Corporation - Class B 331
15,500 AMBAC, Inc. 754
2,400 Amresco, Inc.<F77> 41
2,100 ContiFinancial Corporation<F77> 67
46,400 Federal National Mortgage Association 1,421
39,600 First USA, Inc. 2,228
400 First USA Paymentech, Inc.<F77> 17
32,900 Green Tree Financial Corporation 1,110
74,000 MBNA Corporation 2,100
6,500 Olympic Financial Ltd.<F77> 145
10,800 Quick and Reilly Group, Inc. 329
56,500 The Charles Schwab Corporaiton 1,384
------
9,927
------
Health Care Services & Supplies - 9.6%
7,600 American Medical Response, Inc.<F77> 281
35,825 Columbia/HCA Healthcare Corporation 1,903
1,200 Community Health Systems, Inc.<F77> 52
1,200 Compdent Corporation<F77> 53
45,600 Foundation Health Corporation<F77> 1,784
3,900 Genesis Health Ventures, Inc.<F77> 115
23,700 Health Care & Retirement Corporation<F77> 874
33,112 Health Management Associates, Inc. - Class A 1,059
26,300 Healthsource, Inc.<F77> 898
14,000 Healthsouth Corporation<F77> 520
30,600 Lincare Holdings, Inc.<F77> 1,188
6,000 Living Centers of America, Inc.<F77> 222
2,000 Medisense, Inc.<F77> 90
7,400 Multicare Companies, Inc.<F77> 210
1,800 Orthodontic Centers of America, Inc.<F77> 71
2,900 Pacificare Health Systems, Inc.<F77> 243
13,100 Quorum Health Group, Inc.<F77> 333
12,200 Renal Treatment Centers, Inc.<F77> 354
3,800 Rotech Medical Corporation<F77> 158
3,600 Rural/Metro Corporation<F77> 107
15,600 United Healthcare Corporation 913
96,700 Vencor, Inc.<F77> 3,264
------
14,692
------
Hospital Supplies & Services - 0.4%
11,300 Boston Scientific Corporation<F77> 487
1,000 Gulf South Medical Supply, Inc.<F77> 41
2,600 Omnicare, Inc. 156
------
684
------
Housing - 1.0%
46,222 Clayton Homes, Inc. 855
5,200 Oakwood Homes Corp. 232
30,400 Toll Brothers, Inc.<F77> 494
------
1,581
------
Insurance - 3.5%
11,650 AFLAC, Inc. 361
2,400 Chartwell Re Corporation<F77> 52
11,100 Equitable of Iowa Companies 391
14,100 Arthur J. Gallagher & Company 458
17,200 MBIA, Inc. 1,228
15,600 MGIC Investment Corporation 846
6,300 Penncorp Financial Group, Inc. 193
25,800 Protective Life Corporation 897
6,300 ReliaStar Financial Corporation 275
9,200 Vesta Insurance Group, Inc. 296
10,500 Western National Corp. 190
9,000 Zurich Reinsurance Centre Holdings, Inc. 271
------
5,458
------
Investment Companies - 0.4%
13,700 United Assets Management Corporation 640
------
Lodging - 1.4%
8,400 Felcor Suite Hotels, Inc. 245
36,700 La Quinta Inns, Inc. 1,073
27,400 Promus Hotel Corporation<F77> 778
------
2,096
------
Machinery - Industrial - 0.9%
23,700 Thermo Electron Corporation<F77> 1,460
------
Office Products - 0.8%
45,225 Staples, Inc.<F77> 859
6,500 Viking Office Products, Inc.<F77> 386
------
1,245
------
Oil & Gas - Domestic - 1.3%
16,000 Enron Corporation 644
17,000 NGC Corporation 255
13,300 Sonat Offshore Drilling Company 730
6,580 Tejas Gas Corporation<F77> 329
------
1,958
------
Oil & Gas Services - 1.5%
4,000 BJ Services Company<F77> 153
13,600 Input/Output, Inc.<F77> 473
8,300 Petroleum Geo-Services - ADR A/S<F77> 262
32,700 Tidewater, Inc. 1,390
------
2,278
------
Pollution Control - 0.1%
3,000 Republic Industries, Inc.<F77> 98
2,100 Sanifill, Inc.<F77> 91
------
189
------
Production - 1.3%
51,800 Tyco International, Ltd. 2,001
------
Restaurants - 0.5%
12,400 Apple South, Inc. 322
1,500 IHOP Corporation<F77> 43
4,600 Landry's Seafood Restaurants Incorporated 108
6,300 Lone Star Steakhouse & Saloon<F77> 261
------
734
------
Retail - 4.6%
16,400 AutoZone, Inc.<F77> 599
11,300 CompUSA, Inc.<F77> 391
27,400 Consolidated Stores Corporation<F77> 986
5,600 Discount Auto Parts, Inc.<F77> 164
41,256 Dollar General Corporation 1,088
5,300 Fastenal Company 203
400 Garden Ridge Corporation<F77> 22
80,200 General Nutrition Companies, Inc.<F77> 1,564
6,900 Home Depot, Inc. 327
41,400 Kohl's Corporation<F77> 1,423
7,100 Micro Warehouse, Inc.<F77> 305
700 MSC Industrial Direct Co., Inc. - Class A<F77> 26
7,000 Musicland Stores Corporation<F77> 29
------
7,127
------
Semiconductors - 2.8%
12,700 Altera Corporation<F77> 670
27,500 Atmel Corporation 1,100
15,000 Dallas Semiconductor Corporation 292
14,400 Lattice Semiconductor Corporation<F77> 472
4,200 Linear Technology Corporation 144
20,000 Maxim Integrated Products, Inc.<F77> 685
8,000 Microchip Technology, Inc.<F77> 204
3,500 SDL, Inc.<F77> 143
15,800 Xilinx, Inc.<F77> 583
------
4,293
------
Shoes - 0.0%
2,200 Wolverine World Wide, Inc. 68
------
Telecommunications - 2.6%
17,100 ADC Telecommunications<F77> 718
6,300 Aspect Telecommunications Corporation 362
20,600 Century Telephone Enterprises 675
4,400 Comverse Technology<F77> 103
5,600 EchoStar Communications Corporation - Class A<F77> 188
17,700 Frontier Corporation 560
3,100 Glenayre Technologies, Inc.<F77> 144
25,500 Worldcom, Inc.<F77> 1,198
------
3,948
------
Textiles & Apparel - 1.2%
18,600 Jones Apparel Group, Inc.<F77> 955
4,800 The Men's Wearhouse, Inc.<F77> 178
6,000 Nike, Inc. - Class B 525
1,000 Oakley Incorporated<F77> 83
900 Henry Schein, Inc.<F77> 32
------
1,773
------
Transportation - 0.2%
3,900 Arnold Industries, Inc. 63
5,484 Fritz Companies, Inc. 202
------
265
Travel & Recreation - 2.3%
46,900 Carnival Corporation - Class A 1,360
64,100 CUC International, Inc.<F77> 2,107
------
3,467
------
Total Common Stocks (Cost $66,751) 96,459
------
Principal
Amount
(in thousands)
- --------------
LONG-TERM INVESTMENTS - 29.6%
Asset-Backed Securities - 6.4%
Credit Card Receivables - 6.4%
$1,750 Bank One Credit Card Master Trust 1995-B,
Class A, 6.30%, 10/15/02 1,731
1,700 Discover Card Master Trust I, Series 1993-2,
Class A, 5.40%, 11/16/01 1,663
1,150 First Chicago Master Trust I, Series 1994-L,
Class A, 7.15%, 4/15/01 1,171
350 Private Label Credit Card Master Trust II,
Series 1994-2, Class A, 7.80%, 9/20/03 361
500 Household Affinity Credit Card Master Trust I,
Series 1993-2, Class A, 5.60%, 5/15/02 483
1,800 Sears Credit Account Master Trust, Series 1994-1,
Class A, 7.00%, 1/15/04 1,830
1,000 Capital One Master Trust, Series 1993-1, Class A,
5.20%, 2/15/02 975
1,650 Standard Credit Card Master Trust, Series 1993-3,
Class A, 5.50%, 2/07/00 1,613
------
9,827
------
Corporate Bonds (Domestic) - 10.7%
300 Atlantic Richfield Co. Debentures,
8.50%, 4/01/12 325
350 BankAmerica Corporation Subordinated Notes,
7.75%, 7/15/02 362
250 Barclays North America Capital Corporation
Debentures, 9.75%, 5/15/21 280
250 Chase Manhattan Corporation Debentures,
10.00%, 6/15/99 273
250 Chase Manhattan Corporation Medium Term Notes,
8.65%, 2/13/99 263
750 Chemical Banking Corporation Subordinated
Capital Notes, 9.75%, 6/15/99 814
1,050 Chrysler Financial Corporation Debentures,
13.25%, 10/15/99 1,257
250 Federal Express Corporation Debentures,
9.625%, 10/15/19 276
450 Ford Motor Credit Co. Notes,
5.625%, 12/15/98 440
300 Georgia Pacific Corporation Debentures,
9.50%, 12/01/11 341
1,500 Goldman Sachs Group Notes,
6.25%, 2/01/03 1,412
Heller Financial, Inc. Notes:
750 9.375%, 3/15/98 788
350 7.875%, 11/01/99 362
1,000 Household Finance Corporation Limited
Senior Notes, 7.125%, 4/30/99 1,012
500 Household Finance Corporation Senior
Subordinated Notes, 9.625%, 7/15/00 547
800 International Lease Finance Corporation
Notes, 5.75%, 12/15/99 774
350 International Paper Co. Debentures, 9.70%, 3/15/00 383
Lehman Brothers Holdings, Inc. Notes:
550 8.375%, 2/15/99 572
300 8.875%, 2/15/00 317
700 Lehman Brothers, Inc. Senior Subordinated Notes,
10.00%, 5/15/99 761
1,000 Merrill Lynch & Co., Inc. Senior Notes,
7.75%, 3/01/99 1,030
200 Deseret Generation & Transmission Coop
Debentures, 9.375%, 1/02/11 212
300 NCNB Corporation Subordinated Notes,
10.20%, 7/15/15 370
400 Oneok, Inc. Debentures,
9.70%, 12/01/19 450
400 Rochester Telephone Debentures,
9.00%, 8/15/21 426
350 Salomon, Inc. Senior Notes,
7.75%, 5/15/00 354
550 The Charles Schwab Corporation Medium Term
Notes, 5.90%, 10/01/99 533
600 Security Pacific Corporation Subordinated
Notes, 9.75%, 5/15/99 646
700 Smith Barney Holdings, Inc. Notes,
6.875%, 6/15/05 677
300 Tennessee Gas Pipeline Co. Debentures,
6.00%, 12/15/11 252
------
16,509
------
International/Yankee (U.S. $ Denominated) - 1.1%
500 Hydro-Quebec Debentures,
9.75%, 1/15/18 554
250 Italy (Republic of) Debentures,
6.875%, 9/27/23 219
350 Norsk Hydro A/S Debentures,
9.00%, 4/15/12 390
250 Quebec (Province of) Debentures,
11.00%, 6/15/15 292
150 Sweden (Kindom of) Debentures,
11.125%, 6/01/15 205
------
1,660
------
U.S. Government Agency Issues - 0.2%
350 Federal Home Loan Mortgage Corporation Real
Estate Mortgage Investment Conduit Pass-Thru
Certificates, Series 1169, Class D,
7.00%, 5/15/21 348
------
U.S. Treasury Obligations - 11.2%
U.S. Treasury Bonds:
1,600 10.75%, 2/15/03 1,959
550 11.875%, 11/15/03 719
200 10.75%, 8/15/05 255
11,375 9.25%, 2/15/16 14,009
250 U.S. Treasury Notes,
6.75%, 5/31/99 253
------
17,195
------
Total Long-Term Investments (Cost $45,493) 45,539
------
Number
of Shares
(in thousands)
SHORT-TERM INVESTMENTS - 7.2%
Investment Companies - 7.2%
3,977 Financial Square Prime Obligation Fund 3,977
7,014 Short-Term Investments Co. Liquid
Assets Portfolio 7,014
------
Total Short-Term Investments (Cost $10,991) 10,991
------
Total Investments - 99.5% (Cost $123,235) 152,989
-------
Other Assets, less Liabilities - 0.5% 820
------
TOTAL NET ASSETS - 100.0% $153,809
========
<F77>Non-income producing
See notes to the financial statements.
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market Value
of Shares (in thousands)
- --------- -------------
COMMON STOCKS - 89.1%
Aerospace & Aircraft - 1.0%
44,000 Rockwell International Corporation $ 2,574
Banking - 4.7%
78,000 Bank of New York 3,783
48,000 Northern Trust Corporation 2,700
154,000 Norwest Corporation 5,563
-------
12,046
-------
Business Machines & Software - 3.8%
143,700 Diebold, Inc. 5,532
29,000 Xerox Corporation 4,248
-------
9,780
-------
Business Services - 2.3%
101,225 H & R Block, Inc. 3,556
28,100 Flightsafety International 1,556
14,600 General Motors Corporation - Class E 823
-------
5,935
-------
Chemicals - 4.8%
40,100 Betz Laboratories, Inc. 1,789
52,200 Ecolab, Inc. 1,697
16,600 Loctite Corporation 838
80,000 Praxair, Inc. 3,090
68,300 Sherwin-Williams Company 3,193
33,300 Valspar Corporation 1,603
-------
12,210
-------
Communications & Media - 1.8%
100,300 Interpublic Group of Companies, Inc. 4,689
-------
Consumer Products - 5.0%
88,400 Avery Dennison Corporation 5,039
60,000 Duracell International, Inc. 2,715
177,500 Newell Company 5,059
-------
12,813
-------
Consumer Services - 2.6%
127,069 Service Corporation International 6,751
-------
Containers - 0.9%
69,300 Bemis Company, Inc. 2,244
-------
Cosmetics & Soap - 3.5%
42,400 Gillette Company 2,290
34,700 Estee Lauder Companies - Class A 1,271
63,000 Procter & Gamble Company 5,323
-------
8,884
-------
Distributon - 2.3%
100,425 Alco Standard Corporation 5,812
-------
Drugs - 8.1%
73,000 Allergan, Inc. 2,582
36,400 Johnson & Johnson 3,367
96,700 McKesson Corporation 4,605
99,200 Pfizer, Inc. 6,832
20,300 Pharmacia & Upjohn, Inc. 777
45,900 Smithkline Beecham - PLC ADR 2,479
-------
20,642
-------
Electric - 1.6%
111,850 Nipsco Industries, Inc. 4,013
-------
Electrical Equipment - 5.4%
54,400 AMP, Inc. 2,434
184,200 Belden, Inc. 5,480
37,900 Emerson Electric Company 3,169
34,100 General Electric Company 2,643
-------
13,726
-------
Electronics - 1.0%
43,050 Motorola, Inc. 2,637
-------
Environmental Services - 1.0%
244,000 Laidlaw, Inc. - Class B 2,562
-------
Financial Services - 3.4%
126,000 Equifax 3,087
185,100 Federal National Mortgage Association 5,669
-------
8,756
-------
Food, Beverages & Tobacco - 3.2%
21,500 McCormick and Co. 478
114,600 Nabisco Holdings Corporation - Class A 3,510
66,525 PepsiCo, Inc. 4,224
-------
8,212
-------
Insurance - 4.2%
45,500 MBIA, Inc. 3,248
82,000 ReliaStar Financial Corporation 3,577
215,100 Western National Corp. 3,899
-------
10,724
-------
Investment Companies - 1.0%
56,000 United Assets Management Corporation 2,618
-------
Natural Gas - 1.0%
64,000 Enron Corporation 2,576
-------
Oil - Domestic - 1.4%
87,600 Phillips Petroleum Company 3,635
-------
Oil - International - 1.7%
37,425 Mobil Corporation 4,304
-------
Paper & Forest Products - 0.9%
33,000 Kimberly-Clark Corporation 2,396
-------
Printing & Publishing - 1.5%
84,000 McGraw-Hill, Inc. 3,706
-------
Production - 4.5%
57,700 Dover Corporation 2,971
27,100 Harsco Corporation 1,867
171,000 Tyco International, Ltd. 6,605
-------
11,443
-------
Railroads - 1.0%
85,200 Illinois Central Corporation - Class A 2,556
-------
Real Estate - 2.7%
67,000 Bay Apartments Communities, Inc. 1,683
160,116 Security Capital Industrial 2,762
92,000 Sun Communities, Inc. 2,404
-------
6,849
-------
Retail - 4.5%
96,100 Albertson's, Inc. 3,700
171,550 Hannaford Brothers Company 4,804
24,500 Intimate Brands, Inc. 518
51,200 May Department Stores Company 2,611
-------
11,633
-------
Telecommunications - 6.2%
39,000 AT & T Corporation 2,389
20,400 Cincinnati Bell, Inc. 1,005
140,500 Frontier Corporation 4,443
70,100 GTE Corporation 3,040
144,000 Lucent Technologies, Inc. 5,058
-------
15,935
-------
Textiles & Apparel - 1.0%
99,700 Warnaco Group - Class A 2,617
-------
Travel & Recreation - 1.1%
45,000 Walt Disney Company 2,790
-------
Total Common Stock (Cost $171,206) 228,068
-------
PREFERRED STOCK - 2.0%
Financial Services - 2.0%
82,400 American Express, 6.25%, 12/05/96 (exchangeable
for common stock of First Data Corp) 5,140
-------
Utilities - Gas - 0.0%
500 Tejas Gas Corporation 24
-------
Total Preferred Stock (Cost $4,027) 5,164
-------
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- ---------------
LONG-TERM INVESTMENTS - 2.6%
Corporate Convertible Bonds - 2.6%
$ 87 Browning-Ferris Industries, Inc. (Aces)
Subordinated Convertible Debentures,
7.25%, 6/30/98 $ 2,951
1,400 Tenet Health Care Subordinated Convertible
Debentures, 6.00%, 12/01/05 (convertible to
Vencor, Inc. common stock) 1,505
800 Thermo Electron Corporation Subordinated
Convertible Debentures, 4.625%, 8/01/97 2,300
-------
Total Long-Term Investments (Cost $5,376) 6,756
-------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS - 6.2%
Investment Companies - 4.2%
2,297 Financial Square Prime Obligation Fund 2,297
8,526 Short-Term Investments Co. Liquid Assets Portfolio 8,526
-------
10,823
-------
Principal
Amount
(in thousands)
- --------------
Variable Rate Demand Notes - 2.0%
$5,000 Warner-Lambert Co. 5,000
-------
Total Short-Term Investments (Cost $15,823) 15,823
-------
Total Investments - 99.9% (Cost $196,432) 255,811
-------
Other Assets, less Liabilities - 0.1% 267
-------
TOTAL NET ASSETS - 100.0% $256,078
========
See notes to the financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market Value
of Shares (in thousands)
- --------- --------------
COMMON STOCKS - 94.6%
Aerospace & Aircraft - 2.4%
12,300 Allied Signal, Inc. $ 715
15,300 Boeing Company 1,257
2,600 General Dynamics Corporation 164
8,734 Lockheed Martin Corporation 704
8,100 Loral Corporation 116
4,900 McDonnell Douglas Corporation 473
2,400 Northrop Grumman Corporation 148
10,600 Raytheon Company 537
10,200 Rockwell International Corporation 597
3,700 Textron, Inc. 317
5,300 United Technologies Corporation 586
-------
5,614
-------
Air Transportation - 0.4%
3,600 AMR Corporation<F77> 321
2,200 Delta Air Lines, Inc. 177
2,800 Federal Express Corporation<F77> 226
7,000 Southwest Airlines Company 208
-------
932
-------
Appliances - 0.3%
1,400 Armstrong World Industries, Inc. 80
4,200 Black & Decker Corporation 169
4,000 Maytag Corporation 86
1,400 Snap-On Tools, Inc. 67
3,700 Whirlpool Corporation 223
-------
625
-------
Autos & Trucks - 1.7%
16,775 Chrysler Corporation 1,053
4,800 Dana Corporation 159
3,400 Eaton Corporation 206
2,000 Echlin, Inc. 69
48,600 Ford Motor Company 1,743
5,825 Genuine Parts Company 258
5,600 ITT Industries, Inc. 154
2,120 PACCAR, Inc. 105
3,100 TRW, Inc. 291
-------
4,038
-------
Banking - 6.3%
19,845 Banc One Corporation 690
4,700 Bank of Boston Corporation 227
8,700 Bank of New York 422
16,312 BankAmerica Corporation 1,236
3,500 Bankers Trust New York Corporation 243
3,900 Barnett Banks, Inc. 247
6,900 Boatmen's Bancshares, Inc. 267
19,910 Chase Manhattan Corporation 1,371
22,000 Citicorp 1,733
4,800 Comerica, Inc. 209
5,700 CoreStates Financial Corporation 222
4,600 Fifth Third Bancorp 254
6,800 First Bank System, Inc. 410
14,585 First Chicago Corporation 602
13,080 First Union Corporation 804
11,571 Fleet Financial Group, Inc. 497
6,200 Mellon Bank Corporation 333
8,500 J.P. Morgan & Company, Inc. 715
13,205 NationsBank Corporation 1,053
15,300 Norwest Corporation 553
16,200 PNC Bank Corporation 490
2,200 Republic New York Corporation 131
4,800 Sun Trust Banks, Inc. 338
5,700 US Bancorp 185
7,100 Wachovia Corporation 312
4,433 Wells Fargo & Company 1,076
-------
14,620
-------
Bio-Technology - 0.3%
11,800 Amgen, Inc.<F77> 679
1,800 Millipore Corporation 75
-------
754
-------
Building & Housing - 0.4%
10,600 Corning, Inc. 368
3,800 Fluor Corporaiton 251
6,600 Masco Corporation 180
2,900 Owens-Corning Fiberglass Corporation<F77> 117
2,200 The Stanley Works 138
-------
1,054
-------
Building Materials - 0.1%
1,700 Johnson Controls, Inc. 122
-------
Business Machines & Software - 3.0%
2,700 Amdahl Corporation<F77> 34
4,700 Apple Computer, Inc. 115
12,600 COMPAQ Computer Corporation<F77> 588
6,750 Digital Equipment Corporation<F77> 403
5,800 Honeywell, Inc. 305
25,400 International Business Machines Corporation 2,731
29,175 Oracle Systems Corporation<F77> 985
6,900 Pitney-Bowes, Inc. 336
8,100 Sun Microsystems, Inc.<F77> 439
3,900 Tandem Computers, Inc.<F77> 50
5,000 Unisys Corporation<F77> 30
4,950 Xerox Corporation 725
-------
6,741
-------
Business Services - 3.0%
1,600 Autodesk, Inc. 65
12,900 Automatic Data Processing, Inc. 502
5,700 H & R Block, Inc. 200
3,200 Ceridian Corporation<F77> 153
25,400 Cisco Systems, Inc.<F77> 1,318
11,250 Computer Associates International, Inc. 826
2,600 Computer Sciences Corporation<F77> 192
3,400 Deluxe Corporation 119
4,600 Dial Corporation 129
8,021 Dun & Bradstreet Corporation 488
10,100 First Data Corporation 768
33,600 General Motors Corporation 1,823
3,600 Moore Corporation Limited 66
2,600 National Service Industries 96
5,500 Service Corporation International 292
-------
7,037
-------
Chemicals - 3.1%
5,400 Air Products and Chemicals, Inc. 308
11,500 Dow Chemical Company 1,022
24,700 Dupont (E.I.) De Nemours & Company 1,985
2,200 Ecolab, Inc. 72
4,500 W.R. Grace & Company 349
3,100 Great Lakes Chemical Corporation 212
4,500 Hercules, Inc. 272
5,300 Monsanto Company 803
6,900 Morton International, Inc. 244
2,500 Nalco Chemical Company 76
8,900 PPG Industries, Inc. 451
6,900 Praxair, Inc. 267
2,800 Rohm & Haas Company 186
6,600 Rubbermaid, Inc. 186
4,200 Sherwin-Williams Company 196
2,000 Sigma-Aldrich Corporation 108
6,450 Union Carbide Corporation 294
4,600 The Williams Companies, Inc. 235
-------
7,266
-------
Communications & Media - 1.4%
2,900 Andrew Corporation<F77> 139
9,700 Comcast Corporation - Class A 170
4,700 Dow Jones & Company, Inc. 176
6,600 Gannett Company, Inc. 451
3,400 Harcourt General, Inc. 150
3,700 Interpublic Group of Companies, Inc. 173
1,900 Knight-Ridder, Inc. 138
4,400 New York Times Company - Class A 143
30,700 Tele-Communications, Inc. - Class A<F77> 587
17,700 Time Warner, Inc. 723
4,623 Times Mirror Company - Class A 197
2,700 Tribune Company 188
-------
3,235
-------
Computers - 0.2%
10,200 EMC Corporation<F77> $ 209
7,000 Silicon Graphics, Inc. 207
-------
416
-------
Conglomerates - 0.3%
5,100 ITT Corporation 310
8,124 Tenneco, Inc. 446
-------
756
-------
Consumer Durables - 0.7%
3,637 Eastman Chemical Company 244
15,250 Eastman Kodak Company 1,167
2,128 Polaroid Corporation 96
-------
1,507
-------
Consumer Products - 0.2%
2,200 Avery Dennison Corporation 125
7,600 Newell Company 217
-------
342
-------
Containers - 0.2%
1,200 Ball Corporation 37
2,100 Bemis Company, Inc. 68
5,800 Crown Cork & Seal Company, Inc.<F77> 273
3,242 Stone Container Corporation 55
-------
433
-------
Cosmetics & Soap - 2.1%
3,200 Avon Products, Inc. 284
2,200 Clorox Company 182
6,300 Colgate-Palmolive Company 483
20,044 Gillette Company 1,082
4,800 International Flavors & Fragrances, Inc. 236
30,500 Procter & Gamble Company 2,577
-------
4,844
-------
Distributon - 0.1%
5,658 Alco Standard Corporation 327
-------
Diversified - 0.4%
7,200 Unilever N.V. 983
-------
Drugs - 7.8%
35,300 Abbott Laboratories 1,434
2,800 Allergan, Inc. 99
3,900 Alza Corporation - Class A<F77> 111
14,100 American Home Products Corporation 1,487
1,700 Bard (C.R.), Inc. 62
12,100 Baxter International, Inc. 535
3,100 Becton, Dickinson & Company 250
22,660 Bristol-Meyers Squibb Company 1,864
7,300 Humana, Inc.<F77> 180
29,900 Johnson & Johnson 2,766
24,500 Eli Lilly & Company 1,445
10,300 Medtronic, Inc. 547
55,000 Merck & Company, Inc. 3,327
28,500 Pfizer, Inc. 1,963
22,655 Pharmacia & Upjohn, Inc. 867
16,100 Schering-Plough 924
2,400 St. Jude Medical, Inc.<F77> 88
9,300 Tenet Healthcare Corporation 191
-------
18,140
-------
Electric - 1.0%
6,532 CINenergy Corporation 189
11,100 Consolidated Edison Company Of New York, Inc. 326
9,700 Duke Power Company 456
20,700 Edison International 331
5,600 General Public Utilities Corporation 178
13,600 PacifiCorp 272
10,300 Texas Utilities Company 415
4,300 Union Electric Company 166
-------
2,333
-------
Electrical Equipment - 3.2%
9,400 AMP, Inc. 420
10,200 Emerson Electric Company 853
74,500 General Electric Company 5,774
5,700 General Instrument Corporation<F77> 187
2,200 Grainger (W.W.), Inc. 152
2,600 Scientific-Atlanta, Inc. 48
-------
7,434
-------
Electronics - 3.6%
1,700 General Signal Corporation 65
2,100 Harris Corporation 130
22,800 Hewlett-Packard Company 2,414
36,900 Intel Corporation 2,500
26,500 Motorola, Inc. 1,623
6,500 National Semiconductor Corporation<F77> 102
11,700 Northern Telecom Ltd. 603
2,100 Perkin-Elmer Corporation 115
1,100 Tektronix, Inc. 44
1,900 Teledyne, Inc. 70
8,800 Texas Intruments, Inc. 497
1,300 Thomas & Betts Corporation 51
2,300 Western Atlas, Inc.<F77> 138
-------
8,352
-------
Energy - 2.4%
8,200 American Electric Power Company 333
7,150 Baltimore Gas & Electric Company 189
6,700 Carolina Power & Light Company 241
8,900 Central & South West Corporation 242
5,225 Coastal Corporaiton 207
4,100 Consolidated Natural Gas Company 192
8,200 Dominion Resources, Inc. 316
6,300 DTE Energy Company 195
10,000 Entergy Corporation 265
8,000 FPL Group, Inc. 345
11,600 Houston Industries, Inc. 248
4,100 Niagara Mohawk Power Corporation 31
1,400 NICOR, Inc. 39
3,100 Northern States Power Company 145
6,500 Ohio Edison Company 136
4,600 Pacific Enterprises, Inc. 118
19,900 Pacific Gas & Electric Company 453
7,108 Panenergy Corporation 232
10,700 Peco Energy Company 266
10,700 Public Service Enterprises Group, Inc. 280
4,200 Sonat, Inc. 183
30,200 Southern Company 664
10,400 Unicom Corporation 286
-------
5,606
-------
Energy - Raw Materials - 0.6%
6,600 Baker Hughes, Inc. 209
8,900 Dresser Industries, Inc. 284
5,100 Halliburton Company 293
1,700 Louisiana Land & Exploration Company 92
2,300 McDermott International, Inc. 48
14,900 Occidental Petroleum Corporation 384
-------
1,310
-------
Entertainment & Leisure - 1.4%
4,500 Brunswick Corporation 99
4,750 Hasbro, Inc. 174
900 King World Productions, Inc.<F77> 39
13,687 Mattel, Inc. 356
31,100 McDonald's Corporation 1,489
3,200 Premark International, Inc. 164
8,821 Price/Costco, Inc.<F77> 168
16,185 Viacom, Inc. - Class B<F77> 664
5,550 Wendy's International, Inc. 106
-------
3,259
-------
Environmental Services - 0.0%
11,000 Laidlaw, Inc. - Class B 116
-------
Finance - 1.5%
21,400 American Express Company $ 1,038
2,400 Beneficial Corporation 133
5,100 Great Western Financial Corporation 117
5,000 H.F. Ahmanson & Company 119
4,300 Household International, Inc. 297
7,900 Merrill Lynch & Company, Inc. 477
6,300 National City Corporation<F77> 232
4,500 Salomon, Inc. 183
13,839 The Travelers, Inc. 851
-------
3,447
-------
Financial Services - 1.2%
7,473 Dean Witter Discover and Company 407
49,000 Federal National Mortgage Association 1,500
6,600 Green Tree Financial Corporation 223
9,900 MBNA Corporation 281
7,100 Morgan Stanley Group, Inc. 357
-------
2,768
-------
Food, Beverages & Tobacco - 7.4%
8,100 American Brands, Inc. 337
22,811 Archer-Daniels-Midland Company 431
11,200 Campbell Soup Company 700
56,000 Coca-Cola Company 4,564
10,975 ConAgra, Inc. 424
6,600 CPC International, Inc. 456
5,900 Dardeen Restaurants, Inc. 81
436 Earthgrains Company 14
6,900 General Mills, Inc. 383
17,500 Heinz (H.J.) Company 593
3,700 Hershey Foods Corporation 281
9,600 Kellogg Company 685
5,200 Loews Corporation 396
35,400 PepsiCo, Inc. 2,248
37,100 Philip Morris Companies, Inc. 3,344
3,600 Pioneer Hi-Bred International, Inc. 201
5,600 Quaker Oats Company 192
4,500 Ralston-Ralston Purina Group 263
21,600 Sara Lee Corporation 670
8,200 Sysco Corporation 263
8,600 UST, Inc. 275
5,100 Wrigley (Wm) Jr. Company 268
-------
17,069
-------
Gold & Precious Metals - 0.7%
16,500 Barrick Gold Corporation $ 505
3,500 Cyprus Amax Minerals Company 95
5,700 Echo Bay Mines, Ltd. 75
9,600 Freeport McMoRan Copper & Gold, Inc. 315
6,100 Homestake Mining Company 123
11,361 Placer Dome, Inc. 315
5,152 Santa Fe Pacific Gold Corporation 77
-------
1,505
-------
Health Care Services & Supplies - 1.0%
1,800 Bausch & Lomb, Inc. 72
2,700 Beverly Enterprises<F77> 33
20,052 Columbia/HCA Healthcare Corporation 1,065
2,200 Manor Care, Inc. 88
8,200 United Healthcare Corporation 480
6,100 Warner-Lambert Company 681
-------
2,419
-------
Hospital Supplies & Services - 0.2%
3,300 Biomet, Inc.<F77> 49
7,700 Boston Scientific Corporation<F77> 332
2,900 US Surgical Corporation 107
-------
488
-------
Household Products - 0.1%
9,400 Federated Department Stores<F77> 314
-------
Insurance - 3.5%
5,300 Aetna Life and Casualty Company 378
1,300 Alexander & Alexander Services, Inc. 25
20,473 Allstate Corporation 796
9,500 American General Corporation 334
21,255 American International Group, Inc. 1,942
4,700 Aon Corporation 252
3,800 Chubb Corporation 360
3,400 CIGNA Corporation 385
3,600 General Re Corporation 514
5,700 ITT Hartford Group 279
3,250 Jefferson-Pilot Corporation 171
11,402 KeyCorp 440
4,500 Lincoln National Corporation 217
3,000 Marsh & McLennan Companies, Inc. 282
4,900 Providian Corporation 226
5,300 SAFECO Corporation 175
4,300 St Paul Companies, Inc. 228
3,250 Torchmark Corporation 140
3,200 Transamerica Corporation 243
3,200 UNUM Corporation 190
7,100 US Healthcare, Inc. 370
5,200 USF&G Corporation 83
-------
8,030
-------
Liquor - 0.6%
10,900 Anheuser-Busch Companies, Inc. $ 732
3,400 Brown-Foreman Corporation - Class B 134
17,300 Seagram Company Ltd. 586
-------
1,452
-------
Machinery - Agriculture & Automotive - 0.1%
3,700 Case Equipment 187
1,500 Varity Corporation<F77> 64
-------
251
-------
Machinery - Industrial - 0.0%
1,600 Harnischfeger Industries, Inc. 65
-------
Metals & Minerals - 0.4%
5,600 Bethlehem Steel Corporation<F77> 76
1,300 Inland Steel Industries, Inc. 32
3,600 Nucor Corporation 203
13,566 USX Corporation-Marathon Group, Inc. 298
3,293 USX Corporation-US Steel Group, Inc. 109
5,125 Worthington Industries, Inc. 104
-------
822
-------
Miscellaneous - 0.9%
7,700 Applied Materials, Inc.<F77> 308
2,900 Mallinckrodt Group, Inc. 114
18,700 Minnesota Mining & Manufacturing Company 1,230
6,900 PP&L Resources, Inc. 156
7,500 3 Com Corporation<F77> 346
-------
2,154
-------
Natural Gas - 0.2%
11,600 Enron Corporation 467
-------
Non-Ferrous Metals - 0.8%
10,050 Alcan Aluminum Ltd. 321
7,700 Aluminum Company of America 480
1,200 ASARCO, Inc. 40
6,300 Englehard Corporation 158
5,600 Inco, Ltd. 188
4,321 Newmont Mining Corporation 250
3,300 Phelps Dodge Corporation 243
2,700 Reynolds Metals Company 145
-------
1,825
-------
Office Equipment - 0.1%
16,700 Novell, Inc. 242
-------
Oil - Domestic - 1.9%
4,400 Amerada Hess Corporation $ 249
22,700 Amoco Corporation 1,657
2,800 Ashland, Inc. 115
7,100 Atlantic Richfield Company 836
5,700 Burlington Resources, Inc. 212
2,700 Columbia Gas System, Inc.<F77> 131
2,200 Kerr-McGee Corporation 141
4,900 Oryx Energy Company<F77> 79
1,700 Pennzoil Company 75
11,800 Phillips Petroleum Company 490
3,800 Sun Company, Inc. 118
11,800 Unocal Corporation 379
-------
4,482
-------
Oil - International - 5.6%
29,400 Chevron Corporation 1,705
55,400 Exxon Corporation 4,709
17,500 Mobil Corporation 2,013
23,800 Royal Dutch Petroleum Company 3,409
12,000 Texaco, Inc. 1,026
-------
12,862
-------
Oil & Gas Services - 0.4%
10,800 Schlumberger, Ltd. 953
-------
Paper & Forest Products - 1.5%
2,500 Boise Cascade Corporation 116
4,300 Champion International Corporation 208
4,000 Georgia-Pacific Corporation 311
13,100 International Paper Company 522
2,900 James River Corporation of Virginia 78
12,556 Kimberly-Clark Corporation 912
4,972 Louisiana Pacific Corporation 125
2,200 Mead Corporation 122
700 Potlatch Corporation 30
2,250 Temple-Inland, Inc. 109
3,050 Union Camp Corporation 166
4,225 Westvaco Corporation 131
9,550 Weyerhaeuser Company 473
2,900 Willamette Industries 178
-------
3,481
-------
Pollution Control - 0.5%
9,500 Browning-Ferris Industries, Inc. 306
22,300 WMX Technologies, Inc. 775
-------
1,081
-------
Printing & Publishing - 0.2%
5,000 McGraw-Hill, Inc. 221
7,000 R.R. Donnelley & Sons Company 252
-------
473
-------
Production - 1.5%
1,200 Briggs & Stratton Corporation $ 55
8,600 Caterpillar, Inc. 551
1,400 Cincinnati Milacron, Inc. 37
5,300 Cooper Industries, Inc. 225
12,300 Deere & Company 478
5,300 Dover Corporation 273
1,400 FMC Corporation<F77> 97
1,600 Foster Wheeler Corporation 74
5,200 Illinois Tool Works, Inc. 350
4,700 Ingersoll-Rand Company 182
6,366 Pall Corporation 178
3,250 Parker-Hannifin Corporation 137
2,450 Raychem Corporation 191
1,300 Timken Company 52
7,100 Tyco International, Ltd. 274
19,200 Westinghouse Electric Corporation 362
-------
3,516
-------
Railroads - 1.1%
6,281 Burlington Northern Santa Fe 549
3,600 Conrail, Inc. 251
9,620 CSX Corporation 493
5,900 Norfolk Southern Corporation 496
8,900 Union Pacific Corporation 606
5,300 Whitman Corporation 134
-------
2,529
-------
Retail - 4.3%
11,700 Albertson's, Inc. 450
2,600 American Greetings Corporation 72
6,500 American Stores Company 217
4,700 Circuit City Stores, Inc. 149
3,400 Dayton Hudson Corporation 325
5,500 Dillard Department Stores, Inc. - Class A 221
13,000 Gap, Inc. 392
2,500 Giant Food, Inc. 80
21,300 Home Depot, Inc. 1,009
19,800 Kmart Corporation 200
5,800 Kroger Corporation<F77> 239
8,811 The Limited, Inc. 183
7,800 Lowe's Companies, Inc. 253
11,376 May Department Stores Company 580
1,600 Mercantile Stores Company, Inc. 100
3,600 Nordstrom, Inc. 183
9,800 J.C. Penney Company, Inc. 485
2,000 Pep Boys-Manny, Moe & Jack 67
4,300 Rite Aid Corporation 127
17,700 Sears Roebuck and Company 883
3,500 Supervalu, Inc. 112
3,500 Tandy Corporation 182
2,500 TJX Companies, Inc. 74
11,925 Toys "R" Us, Inc.<F77> 332
11,200 Walgreen Company 357
103,100 Wal-Mart Stores, Inc. 2,462
6,500 Winn-Dixie Stores, Inc. 214
6,600 Woolworth Corporation 126
-------
10,074
-------
Savings & Loan - 0.4%
8,300 Federal Home Loan Mortgage Corporation 692
2,500 Golden West Financial Corporation 132
-------
824
-------
Semiconductors - 0.3%
5,800 Advanced Micro Devices, Inc.<F77> 109
5,700 LSI Logic Corp<F77> 205
8,900 Micron Technology Incorporated 324
-------
638
-------
Software - 1.4%
8,600 Bay Networks<F77> 271
26,500 Microsoft Corporation<F77> 3,001
-------
3,272
-------
Telecommunications - 8.0%
22,000 Airtouch Communications, Inc. 688
7,600 Alltell Corporation 250
25,000 Ameritech Corporation 1,459
70,956 AT & T Corporation 4,346
19,800 Bell Atlantic Corporation 1,287
44,900 BellSouth Corp 1,796
3,500 Cabletron Systems<F77> 264
5,800 DSC Communications Corporation<F77> 183
44,000 GTE Corporation 1,909
29,400 MCI Communications Corporation 865
19,500 NYNEX Corporation 958
19,100 Pacific Telesis Group 654
27,200 SBC Communications, Inc. 1,360
15,800 Sprint Corporation 666
3,700 Tellabs, Inc.<F77> 204
4,866 360 Communications Co.<F77> 114
21,053 US West, Inc. 689
20,353 US West Media Group, Inc.<F77> <F78> 397
8,500 Worldcom, Inc.<F77> 400
-------
18,489
-------
Textiles & Apparel - 0.6%
4,100 Fruit of the Loom, Inc.<F77> $ 108
3,600 Liz Claiborne, Inc. 131
4,700 Melville Corporation 183
6,500 Nike, Inc. - Class B 569
3,800 Reebok International Ltd. 110
2,000 Russell Corporation 52
2,777 VF Corporation 158
-------
1,311
-------
Tire & Rubber - 0.3%
4,800 Cooper Tire & Rubber Company 118
2,600 Goodrich (B.F.) Company 103
6,762 Goodyear Tire & Rubber Company 352
-------
573
-------
Transportation Equipment - 0.0%
1,700 Cummins Engine Company, Inc. 80
-------
Travel & Recreation - 1.2%
9,250 CUC International, Inc.<F77> 304
30,500 Walt Disney Company 1,891
4,950 Harrahs Entertainment, Inc.<F77> 171
2,100 Hilton Hotels Corporation 221
5,800 Marriott International, Inc. 283
-------
2,870
-------
Trucking - 0.1%
2,000 Caliber System, Inc. 80
3,450 Ryder System, Inc. 100
-------
180
-------
Total Common Stock (Cost $153,869) 219,202
-------
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
SHORT-TERM INVESTMENTS - 6.8%
U.S. Treasuries - 0.2%
$ 600 U.S. Treasury Bill, 5.00%, 8/01/96 $ 592
-------
Total U.S. Treasuries (Cost $592) 592
-------
Variable Rate Demand Notes - 6.6%
5,604 Eli Lilly & Company 5,604
3,672 Sara Lee Corporation 3,672
6,052 Warner-Lambert Co. 6,051
-------
Total Variable Rate Demand Notes (Cost $15,328) 15,327
-------
Total Short-Term Investments (Cost $15,920) 15,919
-------
Total Investments - 101.4% (Cost $169,789) 235,122
-------
Liabilities, less Other Assets - (1.4)% (3,352)
-------
TOTAL NET ASSETS - 100.0% $231,770
========
<F77> Non-income producing
<F78> When-issued security
See notes to the financial statements.
MIDCORE GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market Value
of Shares (in thousands)
- --------- -------------
COMMON STOCKS - 93.9%
Business Services - 9.9%
35,500 H & R Block, Inc. $ 1,247
102,000 Ceridian Corporation<F79> 4,870
66,814 First Data Corporation 5,078
56,900 General Motors Corporation - Class E 3,208
89,200 Sungard Data Systems, Inc.<F79> 2,966
-------
17,369
-------
Communications & Media - 6.7%
19,000 Andrew Corporation<F79> 912
42,000 Infinity Broadcasting Corporation<F79> 1,218
34,600 Interpublic Group of Companies, Inc. 1,618
153,300 PanAmSat Corporation<F79> 5,097
76,000 Paxson Communications Corporation<F79> 1,131
27,600 Reuters Holding, PLC ADR 1,866
-------
11,842
-------
Consumer Products - 0.9%
53,000 Newell Company 1,510
-------
Distribution - 2.9%
89,000 Alco Standard Corporation 5,151
-------
Drugs - 3.5%
74,200 Elan Corporation, PLC ADR<F79> 4,907
26,500 Teva Pharmaceutical Industries, Ltd. ADR 1,189
-------
6,096
-------
Electrical Equipment - 3.2%
123,000 AVX Corporation 2,921
18,200 Kemet Corporation<F79> 602
70,493 Molex, Inc. - Class A 2,163
-------
5,686
-------
Entertainment & Leisure - 6.6%
199,500 GTECH Holdings Corporation<F79> 5,661
76,000 Mirage Resorts, Inc.<F79> 3,980
49,735 Viacom, Inc. - Class B<F79> 2,039
-------
11,680
-------
Financial Services - 9.8%
132,000 Federal National Mortgage Association 4,043
110,200 First USA, Inc. 6,199
30,000 Green Tree Financial Corporation 1,013
209,850 MBNA Corporation 5,954
-------
17,209
-------
Health Care Services & Supplies - 13.8%
100,464 Columbia/HCA Healthcare Corporation 5,337
132,400 Foundation Health Corporation<F79> 5,180
64,700 Health Care & Retirement Corporation<F79> 2,386
63,500 Lincare Holdings, Inc.<F79> 2,465
49,000 United Healthcare Corporation 2,866
179,000 Vencor, Inc.<F79> 6,041
-------
24,275
-------
Hospital Supplies & Services - 0.8%
34,000 Boston Scientific Corporation<F79> 1,466
-------
Insurance - 3.6%
36,125 AFLAC, Inc. 1,120
50,800 MBIA, Inc. 3,626
30,000 MGIC Investment Corporation 1,627
-------
6,373
-------
Investment Companies - 1.1%
41,000 United Assets Management Corporation 1,917
-------
Lodging - 2.9%
98,000 La Quinta Inns, Inc. 2,867
78,000 Promus Hotel Corporation<F79> 2,213
-------
5,080
-------
Machinery - Industrial - 3.2%
71,400 Thermo Electron Corporation<F79> 4,400
25,400 York International Corporation 1,219
-------
5,619
-------
Natural Gas - 1.0%
46,000 Enron Corporation 1,851
-------
Office Products - 1.4%
128,325 Staples, Inc.<F79> 2,438
-------
Oil & Gas - Domestic - 1.1%
34,200 Sonat Offshore Drilling Company 1,877
-------
Oil & Gas Services - 2.3%
96,200 Tidewater, Inc. 4,089
-------
Production - 3.4%
156,000 Tyco International, Ltd. 6,025
-------
Retail - 4.3%
47,900 AutoZone, Inc.<F79> 1,748
148,000 General Nutrition Companies, Inc.<F79> 2,886
18,000 Home Depot, Inc. 853
60,000 Kohl's Corporation<F79> 2,063
-------
7,550
-------
Software - 1.0%
9,000 Microsoft Corporation<F79> 1,019
16,000 Reynolds & Reynolds - Class A 740
-------
1,759
Telecommunications - 3.2%
12,000 EchoStar Communications Corporation - Class A<F79> 402
58,200 Frontier Corporation 1,841
75,000 WorldCom, Inc.<F79> 3,525
-------
5,768
-------
Textiles & Apparel - 1.8%
25,100 Cintas Corporation 1,349
20,000 Nike, Inc. - Class B 1,750
-------
3,099
-------
Travel & Recreation - 5.5%
141,400 Carnival Corporation - Class A 4,101
168,650 CUC International, Inc.<F79> 5,544
-------
9,645
-------
Total Common Stock (Cost $110,773) 165,374
-------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS - 6.9%
Investment Companies - 6.9%
3,746 Financial Square Prime Obligation Fund 3,746
8,360 Short-Term Investments Co. Liquid
Assets Portfolio 8,360
-------
Total Short-Term Investments (Cost $12,106) 12,106
-------
Total Investments - 100.8% (Cost $122,879) 177,480
-------
Liabilities, less Other Assets - (0.8)% (1,349)
-------
TOTAL NET ASSETS - 100.0% $176,131
========
<F79> Non-income producing
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market Value
of Shares (in thousands)
- --------- -------------
COMMON STOCKS - 92.1%
Air Transportation - 0.3%
47,000 Atlantic SE Airlines, Inc. $ 1,175
19,400 Valujet, Inc.<F80> 400
-------
1,575
-------
Auto Parts - 0.4%
20,500 APS Holding Corporation<F80> 374
65,700 Copart, Inc.<F80> 1,790
-------
2,164
Bio-Technology - 0.2%
209,300 Perseptive Biosystems, Inc.<F80> 1,491
-------
Business Machines & Software - 2.5%
40,500 Axciom Corporation<F80> 1,114
81,200 In Focus Systems, Inc.<F80> 4,101
62,600 Mylex Corporation<F80> 1,526
83,600 National Instruments Corporation<F80> 2,048
61,700 Network General Corporation<F80> 2,722
90,500 Synopsys, Inc.<F80> 3,733
-------
15,244
Business Services - 3.4%
4,950 Corestaff Incorporated 192
107,200 Danka Business Systems, PLC ADR 5,146
30,450 FIserv, Inc.<F80> 929
114,800 Interim Services, Inc.<F80> 4,979
128,200 Medaphis Corporation<F80> 5,913
103,500 National Data Corporation 3,649
-------
20,808
-------
Chemicals - 1.5%
433,000 Airgas, Inc.<F80> 9,309
-------
Communications & Media - 0.3%
51,800 Evergreen Media Corporation - Class A<F80> 2,033
-------
Conglomerates - 0.3%
69,400 ITI Technologies, Inc.<F80> 1,917
-------
Consumer Products - 0.2%
23,700 USA Detergents, Inc.<F80> 972
-------
Consumer Services - 0.4%
47,400 Stewart Enterprises, Inc. - Class A 2,168
-------
Containers - 0.9%
162,100 Sealed Air Corporation<F80> 5,734
-------
Distribution - 0.3%
80,400 Peak Technologies Group<F80> 1,950
-------
Drugs - 1.8%
20,100 Biovail Corporation International<F80> 568
37,600 Forest Laboratories, Inc. - Class A<F80> 1,734
74,700 Ivax Corporation 2,176
145,200 Teva Pharmaceutical Industries, Ltd. ADR 6,516
-------
10,994
-------
Electrical Equipment - 1.1%
138,200 AVX Corporation 3,282
59,300 Cable Design Technologies<F80> 1,957
58,200 PRI Automation, Inc.<F80> 1,644
-------
6,883
-------
Electronics - 1.9%
66,300 Checkpoint Systems, Inc.<F80> 1,981
260,700 KLA Instruments Corporation<F80> 7,528
97,600 Recoton Corporation<F80> 1,854
7,900 Thermoquest Corporation<F80> 130
-------
11,493
-------
Entertainment & Leisure - 3.5%
265,800 Hollywood Entertainment Corporation 4,386
190,800 Mirage Resorts, Inc.<F80> 9,993
99,200 Movie Gallery, Inc.<F80> 3,026
74,025 Regal Cinemas, Inc.<F80> 3,016
41,800 Station Casinos, Inc.<F80> 1,175
-------
21,596
Finance Companies - 1.0%
98,100 Advanta Corporation - Class B 4,917
31,100 ContiFinancial Corporation<F80> 991
-------
5,908
-------
Financial Services - 8.0%
204,200 AMBAC, Inc. 9,929
34,200 Amresco, Inc.<F80> 586
6,800 First USA Paymentech, Inc.<F80> 296
323,900 Green Tree Financial Corporation 10,932
118,000 Olympic Financial Ltd.<F80> 2,625
261,436 Quick and Reilly Group, Inc. 7,345
702,600 The Charles Schwab Corporation 17,214
-------
48,927
-------
Health Care Services & Supplies - 15.8%
131,400 American Medical Response, Inc.<F80> 4,862
36,900 Community Health Systems, Inc.<F80> 1,219
32,600 Compdent Corporation<F80> 1,443
77,100 Genesis Health Ventures, Inc.<F80> 2,284
482,675 Health Management Associates, Inc. - Class A 15,446
375,300 Healthsource, Inc.<F80> 12,807
194,900 Healthsouth Corporation<F80> 7,236
163,800 Lincare Holdings, Inc.<F80> 6,357
90,000 Living Centers of America, Inc.<F80> 3,330
28,800 Medisense, Inc.<F80> 1,296
133,500 Multicare Companies, Inc.<F80> 3,788
31,600 Orthodontic Centers of America, Inc.<F80> 1,248
23,600 Pacificare Health Systems, Inc.<F80> 3,221
240,200 Quorum Health Group, Inc.<F80> 6,095
190,700 Renal Treatment Centers<F80> 5,530
59,700 Rotech Medical Corporation<F80> 2,478
60,900 Rural/Metro Corporation<F80> 1,804
488,600 Vencor, Inc.<F80> 16,490
-------
96,934
-------
Hospital Supplies & Services - 0.9%
17,600 Gulf South Medical Supply, Inc.<F80> 713
81,700 Omnicare, Inc. 4,902
-------
5,615
-------
Housing - 3.9%
620,693 Clayton Homes, Inc. 11,483
76,600 Oakwood Homes Corp. 3,418
106,775 Southern Energy Homes, Inc.<F80> 1,882
429,900 Toll Brothers, Inc.<F80> 6,986
-------
23,769
-------
Insurance - 7.1%
24,100 Chartwell Re Corporation<F80> 526
149,600 Equitable Iowa Companies 5,273
208,500 Arthur J. Gallagher & Company 6,669
36,050 MGIC Investment Corporation 1,956
87,600 Penncorp Financial Group, Inc. 2,683
359,800 Protective Life Corporation 12,503
94,500 ReliaStar Financial Corporation 4,122
131,600 Vesta Insurance Group, Inc. 4,228
125,500 Western National Corporation 2,275
120,800 Zurich Reinsurance Centre Holdings, Inc. 3,639
-------
43,874
-------
Lodging - 0.6%
125,800 Felcor Suite Hotels, Inc. 3,664
-------
Office Products - 0.9%
98,500 Viking Office Products, Inc.<F80> 5,848
-------
Oil & Gas - Domestic - 1.2%
245,300 NGC Corporation 3,680
79,700 Tejas Gas Corporation<F80> 3,985
-------
7,665
-------
Oil & Gas - Services - 1.9%
51,300 BJ Services Company<F80> 1,969
199,400 Input/Output, Inc.<F80> 6,318
114,500 Petroleum Geo-Services, A/S ADR<F80> 3,621
-------
11,908
-------
Pollution Control - 0.5%
40,400 Republic Industries, Inc.<F80> 1,323
42,700 Sanifill, Inc.<F80> 1,852
-------
3,175
-------
Restaurants - 1.7%
169,550 Apple South, Inc. 4,408
11,300 IHOP Corporation<F80> 322
62,700 Landry's Seafood Restaurants Incorporated 1,473
107,400 Lone Star Steakhouse & Saloon<F80> 4,444
-------
10,647
-------
Retail - 9.8%
188,000 CompUSA, Inc.<F80> 6,509
373,100 Consolidated Stores Corporation<F80> 13,432
87,100 Discount Auto Parts, Inc.<F80> 2,559
515,596 Dollar General Corporation 14,211
77,500 Fastenal Company 2,964
6,600 Garden Ridge Corporation<F80> 366
334,500 General Nutrition Companies, Inc.<F80> 6,523
238,200 Kohl's Corporation<F80> 8,188
107,200 Micro Warehouse, Inc.<F80> 4,610
15,600 MSC Industrial Direct Co., Inc. - Class A<F80> 567
104,500 Musicland Stores Corporation<F80> 431
-------
60,360
-------
Semiconductors - 10.3%
185,500 Altera Corporation<F80> 9,785
403,000 Atmel Corporation<F80> 16,120
257,400 Dallas Semiconductor Corporation 5,019
203,500 Lattice Semiconductor Corporation<F80> 6,665
60,000 Linear Technology Corporation 2,063
284,500 Maxim Integrated Products<F80> 9,744
105,700 Microchip Technology, Inc.<F80> 3,076
50,600 SDL, Inc.<F80> 2,062
241,600 Xilinx, Inc.<F80> 8,909
-------
63,443
-------
Shoes - 0.1%
20,500 Wolverine World Wide, Inc. 633
-------
Software - 1.0%
70,300 Ciber, Inc.<F80> 2,794
54,000 McAfee Associates, Inc.<F80> 3,308
-------
6,102
-------
Telecommunications - 3.2%
232,100 ADC Telecommunications<F80> 9,748
103,800 Aspect Telecommunications Corporation 5,968
87,400 Comverse Technology<F80> 2,043
44,900 Glenayre Technologies, Inc.<F80> 2,088
-------
19,847
-------
Textiles & Apparel - 2.8%
254,400 Jones Apparel Group, Inc.<F80> 13,070
68,900 The Men's Wearhouse, Inc.<F80> 2,549
8,700 Oakley Incorporated<F80> 1,026
13,900 Henry Schein, Inc.<F80> 500
-------
17,145
-------
Transportation - 0.7%
48,000 Arnold Industries, Inc. 780
88,728 Fritz Companies, Inc. 3,261
-------
4,041
Utilities - Telephone - 1.7%
325,500 Century Telephone Enterprises 10,660
-------
Total Common Stock (Cost $403,933) 566,497
-------
Number Market
of Shares Value
(in thousands) (in thousands)
- -------------- -------------
SHORT-TERM INVESTMENTS - 7.3%
Investment Companies - 7.3%
16,107 Financial Square Prime Obligation Fund $ 16,107
28,448 Short-Term Investments Co. Liquid
Assets Portfolio 28,448
-------
Total Short-Term Investments (Cost $44,555) 44,555
-------
Total Investments - 99.4% (Cost $448,488) 611,052
-------
Other Assets, less Liabilities - 0.6% 3,828
-------
TOTAL NET ASSETS - 100.0% $614,880
========
<F80> Non-income producing
See notes to the financial statements.
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market
of Shares Industry Value
- --------- -------- ------
COMMON AND PREFERRED STOCKS - 98.4%
Australia - 2.6%
1,400 Aberfoyle Non-ferrous Metals $ 4,095
10,900 Amcor Limited Forest Products 78,335
4,823 Ampolex Ltd.<F81> Gas Exploration 16,496
4,200 Ashton Mining Ltd. Non-ferrous Metals 7,529
11,744 Aust National Industries Conglomerates 10,712
19,600 Boral Limited Construction Materials 51,165
3,900 Brambles Inds Ltd. Business Services 53,511
9,426 Burns Philp & Co. Retail Trade 19,344
2,700 Caltex Australia Petroleum Services 11,783
8,662 Coca-Cola Amatil Ltd. Food & Beverage 91,197
18,693 Coles Myer Limited Retail Trade 67,611
5,700 CRA Limited Non-ferrous Metals 92,505
16,704 CSR Limited Conglomerates 60,286
4,386 Email Limited Household Appliances 12,312
4,654 FAI Insurances<F81> Insurance 2,269
34,400 Fosters Brewing Group Limited Food & Beverage 63,022
11,675 General Prop Trust Units Real Estate 20,196
17,100 Gold Mines Of Kalg Gold 19,899
433 Goldfields Limited<F81> Gold 1,141
19,767 Goodman Fielder Ltd. Food & Beverage 19,584
6,338 Hardie (James) Inds Construction Materials 13,954
5,200 ICI Australia Chemical 48,042
4,210 Lend Lease Corporation Limited Real Estate 64,219
5,338 MIM Holdings Miscellaneous 420
26,694 Mim Holdings Limited Non-ferrous Metals 39,460
3,818 Newcrest Mining<F81> Gold 18,403
11,552 North Ltd. Non-ferrous Metals 34,789
2,125 OPSM Protector Ltd. Drugs & Healthcare 3,826
18,291 Pacific Dunlop Ltd. Conglomerates 44,584
15,600 Pioneer International Ltd. Construction Materials 47,470
11,236 QCT Resources Miscellaneous 14,842
3,789 Renison Goldfields
Consolidated Ltd. Gold 20,050
1,800 Rothmans Holdings Tobacco 8,747
9,290 Santos Ltd. Petroleum Services 33,163
6,597 Schroders Property Fund Mutual Fund 11,360
3,335 Smith (Howard) Conglomerates 19,405
1,100 Sons of Gwalia Ltd Gold 7,827
9,363 Southcorp Holdings Ltd. Food & Beverage 25,473
4,786 Stockland Trust Group Real Estate 10,988
9,500 TNT<F81> Transportation 12,624
18,353 Westfield Trust Real Estate 31,418
---------
1,214,056
---------
Austria - 1.7%
100 Austrian Airlines<F81> Air Travel 17,286
300 BBAG Oesterr Brau Food & Beverage 15,571
1,465 Bk Austria Ag Banks 115,188
400 Bohler Uddeholm Miscellaneous 32,588
560 Creditanstalt Bank Preferred Bank 31,194
1,020 Creditanstalt Bank Bank 69,203
300 EA-Generali AG Insurance 97,320
650 Flughafen Wien AG Business Services 45,486
100 Lenzing AG Chemicals 6,896
400 Mayr Melnhof Karto Miscellaneous 18,315
1,100 Oester Elektrizitats Electic Utilities 77,588
957 OMV AG<F81> Miscellaneous 94,910
300 Radex Heraklith Miscellaneous 9,093
500 Va Technologie AG Industrial Machinery 66,317
300 Wienerberger Baust Construction Materials 58,253
300 Z Laenderbank Bank
Austria AG Preferred Banks 12,596
---------
767,804
---------
Belgium - 1.7%
200 Barco Nv Electronics 31,794
40 Bekaert SA Industrial Machinery 30,874
75 CBR Cimenteries Construction Materials 29,272
910 Delhaize Le Lion Retail Trade 44,901
150 Electrabel Electonics 33,603
150 Electrabel Stripped Shares Electonics 405
690 Fortis Ag Insurance 85,607
260 Generale De Banque Banks 91,575
5 Generale De Banque VVPR Banks 8
375 Gevaert Chemicals 23,679
102 Glaverbel Groupe Containers & Glass 11,328
370 GPE Bruxelles LAM Conglomerates 48,899
230 Kredietbank Banks 65,683
25 Kredietbank VVPR Banks 7,060
25 Royale Belge BBPR Insurance 40
230 Royale Belge Insurance 44,883
145 Solvay Chemicals 85,463
50 Tractebel Intl VVPR Conglomerates 20,228
200 Tractebel Intl Conglomerates 81,231
450 Union Miniere <F81> Non-ferrous Metals 34,698
---------
771,231
---------
Denmark - 1.1%
500 Carlsberg A Food & Beverage 27,484
370 Carlsberg B Food & Beverage 20,025
3 D/S 1912 B Conglomerates 66,216
2 D/S Svendborg B Conglomerates 63,256
785 Danisco Food & Beverage 38,238
90 Danske Luftfartsel DDL <F81> Air Travel 7,383
750 Den Danske Bank Banks 48,837
135 FLS Industries B Industrial Machinery 12,444
65 GN Store Nord Telecommunications 5,508
450 ISS International Service
System Series B Conglomerates 12,710
135 Korn-Og Foderstof Food & Beverage 5,822
30 Lauritzen (J) Holding B <F81> Conglomerates 3,546
85 NKT Holding Electrical Equipment 4,069
530 Novo Nordisk As B Drugs & Healthcare 68,754
240 OK Ostasiatiske Kompagni <F81> Conglomerates 5,033
155 Radio Meter As B Drugs & Healthcare 11,614
35 Royal Copenhagen Apparel & Textiles 3,001
90 Sophus Berendsen A Conglomerates 10,960
255 Sophus Berendsen B Conglomerates 31,225
70 Superfos A/S Chemicals 6,500
755 Unidanmark A Banks 33,584
---------
486,209
---------
Finland - 0.6%
400 Amer Group Conglomerates 7,419
300 Cultor Oy Series 1 Household Products 12,675
300 Instrumentarium Series A Drugs & Healthcare 8,038
1,500 Kesko Retail 17,003
100 Kone Corp B Industrial Machinery 11,129
1,400 Kymmene Corp Forest Products 37,567
12,120 Merita Ltd.<F81> Banks 25,978
200 Metra Ab A Conglomerates 8,244
200 Metra Ab B Conglomerates 8,244
2,100 Outokumpu Oy A Non-ferrous Metals 36,572
400 Pohjola A Insurance 6,430
300 Pohjola B Insurance 4,730
2,600 Repola Forest Products 50,156
300 Sampo (Vakuutusosak) A Insurance 15,457
100 Stockmann Ab (OY) Retail 5,359
---------
255,001
---------
France - 10.6%
1,385 Accor Leisure 192,075
1,050 Bic Conglomerates 115,601
100 Bongrain SA Food & Beverage 55,434
924 Bouygues Home Builders 93,697
1,000 Canal Plus Broadcasting 244,529
2,336 Casino Guich Perr Leisure 87,758
618 Casino Guich Perr Preferred Leisure 16,807
275 Chargeurs Conglomerates 73,035
1,051 Cie Bancaire Financial Services 115,542
100 Cie Gen Geophysique<F81> Petroleum Services 6,895
476 Club Mediterranee <F81> Leisure 45,051
210 Comptoirs Modernes Retail Trade 81,123
365 CPR Cie Par Reesco Investment Companies 31,584
1,351 Credit Foncier de France <F81> Banks 16,440
516 Credit National Banks 40,305
4,562 CSF (Thomson) Aerospace 121,247
250 DMC Dollfus-Mieg Apparel & Textiles 13,617
500 Docks de France Retail Trade 94,644
390 Ecco Ste Business Services 87,457
1,250 Eridania Beghin-Say Household Products 203,533
350 Essilor International Drugs & Healthcare 88,424
131 Eurafrance Financial Services 50,302
57 Europe 1 Registered Broadcasting 13,212
552 GTM Entrepose Home Builders 35,504
2,998 Havas Business Services 248,535
604 Imetal Non-ferrous Metals 94,380
3,350 Lagardere Groupe Publishing 89,747
1,300 Legrand Electrical Equipment 252,352
5,350 Michelin (CGDE) Class B Tires & Rubber 264,643
966 Moulinex <F81> Household Products 16,046
500 Nord-Est Steel 13,550
2,185 Pernod-Ricard Food & Beverage 142,310
880 Pinault-Printemps-Redoute Retail Trade 266,687
750 Primagaz Domestic Oil 80,254
700 Promodes Retail Trade 200,780
150 Sagem SA Electronics 93,437
300 Saint Louis Food & Beverage 87,208
50 Salomon SA Toys, Amusement &
Sporting Goods 34,767
4,950 Schneider SA (Ex Spep) Industrial Machinery 230,228
600 Sefimeg Real Estate 41,048
2,000 Seita Beverages & Tobacco 76,874
250 Sidel Industrial Machinery 59,394
574 Simco Real Estate 54,542
60 Skis Rossignol Toys, Amusement &
Sporting Goods 20,686
266 Sodexho Leisure 105,274
100 Sommer Allibert Construction Materials 28,509
600 Technip Industrial Machinery 53,878
350 Unibail SA Financial Services 34,139
306 Union Immobiliere France Real Estate 26,715
9,450 Usinor Sacilor <F81> Steel 145,931
2,700 Valeo Industrial Machinery 149,568
---------
4,835,298
---------
Germany - 14.7%
4,950 Adidas AG Toys, Amusement &
Sporting Goods 376,027
4,100 Agiv AG Construction & Mining 87,154
100 Amb Aach & Mun Bet Insurance 52,165
450 Amb Aach & Mun Bet Registered Insurance 267,019
450 Asko Deut Kaufhaus Retail Trade 267,019
450 Beiersdorf AG Series ABC Drugs & Healthcare 378,521
400 Bilfinger & Berger Home Builders 151,148
471 Brau Und Brunnen Food & Beverage 51,289
1,450 Bremer Vulkan Verbund <F81> Industrial Machinery 1,588
260 CKAG Colonia Konzern AG Insurance 178,013
50 CKAG Colonia Konzern AG
Non-Voting Preferred Insurance 27,713
9,600 Continental AG Industrial Machinery 165,571
900 Degussa AG Chemicals 323,357
150 DLW AG Construction Materials 12,422
3,100 Douglas Holding AG Retail Trade 102,484
152 Dyckerhoff AG Construction Materials 53,521
152 Dyckerhoff AG Non-Voting
Preferred Construction Materials 34,343
350 Fag Kugelfischer <F81> Industrial Machinery 50,095
480 Heidelberg Zement Construction Materials 298,905
200 Herlitz AG Business Services 23,865
200 Herlitz AG Non-Voting Preferred Business Services 21,622
741 Hochtief AG Construction Materials 280,243
112 Holsten Brauerei AG Food & Beverage 24,100
250 Iwka AG Industrial Machinery 44,340
900 Karstadt AG Retail Trade 335,563
850 Kaufhof Holding AG Retail Trade 264,378
200 Kaufhof Holding AG Non-Voting
Preferred Retail Trade 47,470
5,800 Klockner Humboldt-Deutz <F81> Industrial Machinery 32,525
930 Linde AG Industrial Machinery 567,606
250 Linotype-Hell AG<F81> Computers & Business
Equipment 18,290
3,587 Lufthansa AG Air Travel 567,895
300 Lufthansa AG Non-Voting
Preferred Air Travel 46,890
1,200 Man AG Industrial Machinery 320,266
450 Man AG Non-Voting Preferred Industrial Machinery 90,640
1,650 Preussag AG Conglomerates 443,809
750 PWA Papierwerke Waldhof <F81> Forest Products 101,232
200 Rheinmetall Berlin Aerospace 29,082
200 Salamander AG Apparel & Textiles 24,648
7,400 Schering AG Drugs & Healthcare 542,840
250 Strabag AG Home Builders 31,136
---------
6,736,794
---------
Great Britain - 7.3%
2,566 Amec Home Builders 4,582
3,800 Anglian Water Business Services 33,016
4,200 Argos Retail Trade 40,872
338 Argyll Group Retail Trade 1,684
11,300 Arjo Wiggins Appleton Forest Products 30,946
12,400 Associated British Foods Food & Beverage 74,058
2,200 Barratt Developments Home Builders 8,897
550 Barratt Developments Rights,
Expire 5/07/96 Home Builders 561
5,200 BBA Group <F81> Industrial Machinery 27,116
13,300 BET Conglomerates 44,806
4,419 BICC Electrical Equipment 23,010
10,100 Blue Circle Industries Construction Materials 56,759
2,343 Bowthorpe Electronics 15,699
7,000 BPB Industries Construction Materials 34,874
5,900 British Aerospace Aerospace 77,070
5,966 British Land Co. Real Estate 38,630
27,900 British Steel Steel 83,105
2,800 Burmah Castrol PLC Petroleum Services 44,643
2,100 Calor Group Gas & Pipeline Utilities 8,477
8,400 Caradon PLC Containers & Glass 28,992
8,000 Carlton Communications Broadcasting 55,942
3,500 Chubb Security Business Services 19,984
9,809 Coats Viyella Apparel & Textiles 28,188
1,160 Cobham PLC Aerospace 10,340
340 Costain Group <F81> Home Builders 505
5,600 Courtaulds PLC Chemicals 35,966
1,200 Courtaulds Textile Apparel & Textiles 7,518
2,430 Dawson International Apparel & Textiles 3,264
3,139 De La Rue Business Services 34,975
1,800 Delta Electrical Equipment 12,209
5,036 East Midlands Electricity Electric Utilities 47,345
5,901 Electrocomponents Electronics 35,287
4,312 English China Clays Mining 18,862
6,840 FKI Electrical Equipment 17,141
6,600 General Accident Insurance 62,593
4,800 GKN Industrial Machinery 70,768
8,100 Granada Group Leisure 100,095
3,900 Great Portland Estates Real Estate 10,622
12,075 Guardian Royal Exchange Insurance 40,860
3,568 Hammerson PLC Real Estate 20,640
9,915 Harrison & Crosfield Miscellaneous 22,095
3,100 Hepworth Construction Materials 14,025
1,517 Hyder Utilities 16,732
1,530 Hyder Cumulative Preferred Utilities 2,371
4,300 IMI Non-ferrous Metals 23,971
1,100 Independent News Newspapers 5,427
3,000 Johnson Matthey Conglomerates 27,348
15,997 Ladbroke Group Hotels & Restaurants 46,930
1,133 Laing (John) Home Builders 5,356
1,700 Laird Group Industrial Machinery 12,462
7,000 Land Securities Real Estate 68,750
13,300 Lasmo Gas Exploration 38,319
6,784 Legal & General GR Insurance 72,889
1,400 Lex Service Business Services 7,668
2,442 London Electricity Electric Utilities 30,232
10,700 Lonrho Conglomerates 31,069
12,106 Lucas Industries Industrial Machinery 38,967
4,233 Marley Home Builders 9,274
5,600 MEPC Real Estate 36,008
2,512 Mercury Asset Management Group Financial Services 33,756
1,534 Meyer International Forest Products 10,439
23,671 National Grid Grp Electric Utilities 72,640
5,200 Next Retail Trade 41,357
4,138 Northern Electric Electric Utilities 40,672
1,400 Northern Electric Preferred Electric Utilities 2,132
1,900 Ocean Group Trucking & Freight
Forwarding 12,545
600 Oxford Instruments Electronics 4,344
8,300 P & O Trucking & Freight
Forwarding 65,140
13,867 Pilkington Containers & Glass 44,323
1,900 Provident Financial Financial Services 27,371
3,600 Racal Electronics Electronics 18,637
7,168 Redland Construction Materials 45,929
6,900 Rexam Construction Materials 41,002
3,400 RMC Group Construction Materials 55,663
20,032 Rolls Royce Automobiles 71,242
9,000 Royal Insurance Holdings Insurance 49,025
8,100 Rugby Group Construction Materials 15,558
2,700 Schroders Financial Services 53,380
8,400 Scottich & Newcastle Food & Beverage 86,660
15,640 Scottish Power Electric Utilities 87,423
21,300 Sears PLC Retail Trade 32,123
6,900 Sedgwick Group Insurance 14,496
4,900 Slough Estates Real Estate 17,610
4,200 Smiths Industries Industrial Machinery 44,559
3,555 Southern Electric Electric Utilities 44,678
2,060 Southern Water Business Services 23,540
3,300 St. James' Place Capital Financial Services 5,744
6,735 T & N Industrial Machinery 18,141
11,643 Tarmac Construction Materials 22,800
5,451 Tate & Lyle Food & Beverage 39,386
4,700 Taylor Woodrow Home Builders 12,272
5,600 Thames Water Business Services 48,067
6,432 TI Group Conglomerates 52,796
1,800 Transport Development Railroads & Equipment 5,767
3,300 Unigate Food & Beverage 20,575
7,400 United Biscuits Food & Beverage 26,762
6,721 United Utilities Business Services 59,908
4,200 Vickers Industrial Machinery 16,261
8,000 Williams Holdings Construction Materials 41,417
5,167 Willis Corroon Group Insurance 11,863
2,300 Wilson (Connoly) Holdings Home Builders 6,420
4,400 Wimpey (George) Home Builders 9,508
7,600 Wolseley Construction Materials 53,430
---------
3,328,155
---------
Hong Kong - 1.0%
10,000 Applied International Holdings Electronics 944
12,800 Bank of East Asia Banks 43,022
33,000 Cathay Pacific Airways Air Travel 57,592
20,000 Chinese Estates Real Estate 18,098
7,000 Dickson Concepts International Retail Trade 8,099
8,000 Giordano International Retail Trade 7,394
15,000 Hang Lung Development Co. Real Estate 28,408
35,640 Hong Kong & China Gas Electric Utilities 58,513
2,720 Hong Kong & China Gas Warrants,
Expire 9/30/97 Electric Utilities 144
2,000 Hong Kong Aircraft Aerospace 5,068
12,000 Hong Kong & Shangai Hotel Conglomerates 20,710
49,000 Hopewell Holdings Real Estate 29,930
13,000 Hysan Development Real Estate 41,762
550 Hysan Development Warrants,
Expire 4/30/98 Real Estate -
5,500 Johnson Electric Holdings Electrical Equipment 12,443
4,000 Kumagai Gumi (HK) Home Builders 3,697
2,000 Lai Sun Garmentt International Apparel & Textiles 2,314
8,000 Miramar Hotel & Invest. Hotels & Restaurants 17,374
14,000 Oriental Press Group Publishing 6,515
7,000 Peregrine Investments <F81> Real Estate 10,814
30,000 Regal Hotels International Hotels & Restaurants 7,601
18,000 Shangri-La Asia Leisure 24,782
16,000 Shun Tak Holdings Aerospace 11,583
9,000 Stelux Holdings International Retail Trade 2,059
16,000 South China Morning Post Broadcasting 10,859
6,300 Tai Cheung Holdings Real Estate 5,579
5,000 Television Broadcasts Broadcasting 20,037
1,992 Wing Lung Bank Banks 11,331
2,500 Winsor Industrial Corp. Apparel & Textiles 2,295
---------
468,967
---------
Ireland - 0.4%
7,500 Allied Irish Banks Banks 38,996
4,000 CRH Construction Materials 35,884
2,629 Fyffes Food & Beverage 4,407
1,632 Greencore Group Food & Beverage 7,884
1,200 Independent News Newspapers 9,964
2,940 Irish Life Insurance 11,408
1,800 Kerry Group A Food & Beverage 16,483
11,740 Smurfit (Jefferson) Paper 31,614
6,700 Waterford Wedgewood Toys, Amusements &
Sporting Goods 7,539
2,373 Woodchester Investments Financial Services 6,814
---------
170,993
---------
Italy - 8.6%
8,000 Arn Mondadori Edit Broadcasting, Advertising &
Publishing 66,700
119,500 Banca Commerciale Italiana Banks 268,846
8,000 Banca Naz Agricolt,
Non-Convertible Preferred <F81> Banks
3,073
10,000 Banca Naz Agricolt Priv <F81> Banks 3,643
17,500 Banca Naz Agricolt <F81> Banks 11,420
1,500 Banca Naz Agricoltura <F81> Agricultural Machinery 575
13,000 Banca Popolare Milano <F81> Banks 59,615
34,000 Banco Ambros Veneto Banks 102,568
13,000 Banco Ambros Veneto,
Non-Convertible Preferred Banks 20,813
12,000 Benetton Group Apparel & Textiles 143,805
7,600 Cartiere Burgo Forest Products 43,377
15,500 Cementir Construction Materials 12,195
150,000 Credito Italiano Ord Banks 191,069
2,000 Danieli Industrial Machinery 14,176
2,000 Danieli, Non-Convertible
Preferred Industrial Machinery 7,184
43,000 Edison Ord Electric Utilities 246,521
24,500 Fidis Conglomerates 67,176
41,000 IMI Instituto Mobiliare Banks 324,936
29,000 Impregilo Ord <F81> Home Builders 25,022
54,000 Ist Bc S.Paolo (To) Banks 351,518
10,200 Italcementi Construction Materials 73,960
6,000 Italcementi, Non-Convertible
Preferred Construction Materials 16,528
45,000 Italgas Gas & Pipeline Utilities 155,310
4,000 La Previdente Insurance 25,565
25,500 Magneti Marelli Industrial Machinery 38,626
3,000 Marzotto & Figli Apparel & Textiles 21,283
32,000 Mediobanca Banks 229,168
361,000 Montedison <F81> Conglomerates 218,268
41,000 Montedison, Non-Convertible
Preferred <F81> Conglomerates 23,374
1,000 Olivetti <F81> Computers & Business
Equipment 908
4,500 Olivetti, Non-Convertible Computers & Business
Preferred <F81> Equipment 2,287
239,250 Olivetti, Priv <F81> Computers & Business
Equipment 152,913
79,000 Parmalat Finanziaria Food & Beverage 86,846
101,000 Pirelli Spa Industrial Machinery 157,508
4,000 Pirelli Spa, Non-Convertible
Preferred Industrial Machinery 5,024
21,742 Ras Insurance 242,139
8,358 Ras, Non-Convertible Preferred Insurance 47,276
10,000 Rinascente Retail Trade 69,090
3,000 Rinascente, Non-Convertible
Preferred Retail Trade 9,184
2,000 Rinascente, Priv Retail Trade 5,292
8,000 Sai Ord Insurance 86,411
4,000 Sai Ord, Non-Convertible
Preferred Insurance 17,282
28,000 Saipem Petroleum 102,006
5,333 Sasib Industrial Machinery 21,065
4,000 Sasib, Non-Convertible
Preferred Industrial Machinery 7,772
15,000 Sirti Home Builders 95,007
39,000 SNIA BPD <F81> Conglomerates 43,671
2,000 SNIA BPD, Non-Convertible
Preferred <F81> Conglomerates 1,387
---------
3,919,382
---------
Japan - 35.6%
11,000 77th Bank Banks 113,408
2,200 Advantest Corp. Electronics 108,997
4,000 Aida Engineering Industrial Machinery 38,184
5,000 Alps Electric Co. <F81> Electronics 58,708
8,000 Amada Co. Industrial Machinery 93,170
3,000 Amano Corporation Pollution Control 42,671
12,000 Aoki Corp.<F81> Home Builders 50,174
2,000 Aoyama Trading Co. Conglomerates 62,813
1,500 Arabian Oil Co. International Oil 74,316
12,000 Asahi Breweries Food & Beverage 145,482
3,000 Asahi Optical Co. <F81> Food & Beverage 16,209
18,000 Ashikaga Bank Banks 121,484
5,000 Asics Corp. <F81> Apparel & Textiles 17,660
8,000 Banyu Pharmaceutical Co. Drugs & Healthcare 115,317
7,000 Brother Industries Household Appliances &
Furnishings 45,373
8,000 Casio Computer Co. Toys, Amusement & Sporting
Goods 84,769
17,000 Chichibu Onoda Cement Construction Materials 104,835
7,000 Chiyoda Corp. Industrial Machinery 84,865
7,000 Chugai Pharmaceutical Co. Drugs & Healthcare 68,159
9,000 Citizen Watch Co., Ltd. Retail 78,612
18,000 Cosmo Oil Company International Oil 117,703
3,500 Credit Saison Co. Financial Services 86,535
2,000 CSK Corporation Business Services 62,050
11,000 Daicel Chemical Ind. Chemicals 73,295
12,000 Daido Steel Company Steel 66,212
3,000 Daifuku Co. Industrial Machinery 47,253
8,000 Daiichi Pharmaceutical Company Drugs & Healthcare 134,409
8,000 Daikin Industries Industrial Machinery 88,588
5,000 Daikyo, Inc. Real Estate 37,421
8,000 Daimaru, Inc. Apparel & Textiles 63,004
22,000 Dainippon Ink Chemicals 119,498
5,000 Dainippon Screen Mfg. Co. <F81> Electronics 50,594
6,000 Daishowa Paper Mfg. Co. <F81> Paper 55,558
4,000 Daito Trust Construction Construction & Mining 59,186
4,000 Daiwa Kosho Lease Co. Real Estate 43,530
13,000 Denki Kagaku Kogyo K.K. Chemicals 50,260
8,000 Ebara Corp. Industrial Machinery 124,481
8,350 Eisai Co. Drugs & Healthcare 164,999
5,000 Ezaki Glico Co. Food & Beverage 52,026
10,000 Fujikura Industrial Machinery 77,992
14,000 Fujita Corp. Home Builders 69,896
4,000 Fujita Kanko, Inc. Leisure 87,824
18,000 Furukawa Electric Co. Electrical Equipment 108,940
3,000 Gakken Co. <F81> Broadcasting 21,622
6,000 Gunze Limited Apparel & Textiles 39,349
25,000 Hankyu Corp. Railroads & Equipment 152,499
5,000 Hankyu Department Stores Retail Trade 73,028
12,000 Haseko Corp. Home Builders 55,215
9,000 Hazama Corp. Home Builders 40,466
7,000 Higo Bank Banks 60,809
1,000 Hirose Electric Co. Electronics 61,668
10,000 Hokkaido Bank Banks 32,743
20,000 Hokuriku Bank Banks 134,600
10,000 Honshu Paper Co. Paper 72,359
3,000 House Food Corp. Food & Beverage 60,140
4,000 Hoya Corp. Drugs & Healthcare 141,282
7,000 Inax Corporation Construction Materials 76,178
6,000 Isetan Co. Retail Trade 88,779
8,000 Ishihara Sangyo Kaisha <F81> Industrial Machinery 29,631
7,000 Itoham Foods Inc. Food & Beverage 56,866
7,000 Iwatani International Electric Utilities 38,824
4,000 Jaccs Co. Financial Services 38,948
32,000 Japan Energy Corp. Miscellaneous 131,049
4,000 Japan Metal & Chemicals <F81> Chemicals 22,720
10,000 Japan Steel Works Steel 34,175
2,000 Jeol <F81> Electronics 17,374
5,000 JGC Corp. Electronics 63,959
4,000 Kaken Pharmaceutical Co. Drugs & Healthcare 36,466
8,000 Kamigumi Co. Business Services 82,478
5,500 Kandenko Co. Home Builders 75,080
14,000 Kanebo <F81> Apparel & Textiles 44,237
10,000 Kaneka Corp. Chemicals 69,973
8,000 Kansai Paint Co. Chemicals 42,766
2,000 Katokichi Co. Food & Beverage 49,831
16,000 Kawasaki Kisen Kaisha <F81> Trucking & Freight
Forwarding 58,957
14,420 Keihin Electric Express Railroads & Equipment 88,925
6,000 Kikkoman Corp. Food & Beverage 47,826
7,700 Kinden Corporation Home Builders 122,753
2,200 Kissei Pharmaceutical Co. Drugs & Healthcare 69,305
4,000 Kokuyo Co. Business Services 110,735
2,000 Komori Corporation Industrial Machinery 53,076
1,000 Konami Co. Business Services 30,261
10,000 Konica Corporation Photography 78,278
7,000 Koyo Seiko Co. Industrial Machinery 67,491
19,000 Kumagai Gumi Co. Construction Materials 81,438
7,000 Kurabo Industries Apparel & Textiles 30,605
9,000 Kuraray Co. Chemicals 103,957
6,000 Kureha Chemical Ind Co. Chemicals 36,600
4,400 Kurita Water Industries Business Services 110,467
14,000 Kyowa Hakko Kogyo Co. Drugs & Healthcare 137,655
2,000 Kyudenko Corp. Electrical Equipment 29,402
9,000 Lion Corp. Drugs & Healthcare 56,446
3,000 Maeda Road Construction Construction Materials 54,985
4,000 Makino Milling Machine <F81> Industrial Machinery 41,621
6,000 Makita Corp. Electrical Equipment 96,797
4,000 Marudai Food Co. Food & Beverage 31,884
10,000 Maruha Corp. <F81> Food & Beverage 39,139
9,000 Meiji Milk Products Co. Food & Beverage 58,680
11,000 Meiji Seika Kaisha Food & Beverage 69,410
11,000 Minebea Co. Industrial Machinery 100,912
5,000 Misawa Homes Co. Home Builders 46,060
14,000 Mitsubishi Gas Chemical Chemicals 68,961
14,000 Mitsubishi Oil Co. International Oil 125,894
9,000 Mitsubishi Paper Mills Paper 57,735
4,000 Mitsubishi Steel Mfg. <F81> Steel 23,407
6,000 Mitsubishi Warehouse Business Services 100,807
23,000 Mitsui Engineering &
Shipbuilding<F81> Industrial Machinery 73,113
20,000 Mitsui Marine & Fire Insurance 169,348
14,000 Mitsui Mining & Smelting <F81> Mining 64,150
31,000 Mitsui Osk Lines <F81> Trucking & Freight
Forwarding 112,453
4,000 Mitsui-Soko Co. Trucking & Freight
Forwarding 34,290
22,000 Mitsui Toatsu Chemicals Chemicals 97,446
15,000 Mitsukoshi Retail Trade 166,102
4,000 Mochida Pharmaceutical Drugs & Healthcare 57,277
3,000 Mori Seiki Co. Industrial Machinery 68,445
4,000 Nagase & Co. Chemicals 39,712
22,000 Nagoya Railroad Co. Railroads & Equipment 118,868
13,650 Nankai Electric Railway Railroads & Equipment 90,170
10,000 NGK Insulators Electrical Equipment 113,598
6,000 NGK Spark Plug Co. Industrial Machinery 74,459
12,600 Nichido Fire & Marine Insurance 105,847
8,000 Nichii Co. Retail 128,299
9,000 Nichirei Corp. <F81> Household Products 65,295
10,000 Nihon Cement Co. Construction Materials 71,214
9,000 Niigata Engineering<F81> Industrial Machinery 35,053
4,000 Nippon Beet Sugar Mfg. Co. Food & Beverage 22,758
3,000 Nippon Comsys Corp. Computers & Business
Equipment 38,662
3,000 Nippon Denko Co. Steel 13,689
17,000 Nippon Fire & Marine Insurance 124,147
16,000 Nippon Light Metal Co. Non-ferrous Metals 103,861
7,000 Nippon Meat Packers Food & Beverage 110,926
4,000 Nippon Sharyo Industrial Machinery 40,857
12,000 Nippon Sheet Glass Co. Containers & Glass 61,630
9,000 Nippon Shinpan Co. Financial Services 67,099
7,000 Nippon Shokubai Co. Chemicals 76,178
8,000 Nippon Suisan Kaisha <F81> Food & Beverage 35,664
8,000 Nishimatsu Construction Construction & Mining
Equipment 93,933
7,000 Nisshinbo Industries Apparel & Textiles 77,514
4,000 Nissin Food Products Co. Food & Beverage 109,589
4,000 Nitto Denko Corp. Electronics 64,532
6,000 NOF Corp. Chemicals 36,714
6,000 Noritake Co. Toys, Amusement & Sporting
Goods 62,431
16,000 NSK Industrial Machinery 129,063
13,000 NTN Corp. Industrial Machinery 95,308
21,000 Obayashi Corp. Home Builders 195,055
21,630 Odakyu Electric Railway Railroads & Equipment 154,861
4,000 Okamoto Industries Tires & Rubber 27,455
4,000 Okuma Corp. <F81> Industrial Machinery 43,912
7,000 Okumura Corp. Home Builders 66,823
9,000 Olympus Optical Co. Photography 97,084
5,000 Onward Kashiyama Co. Apparel & Textiles 84,483
9,000 Orient Corp. Financial Services 56,704
2,000 Orix Corp. Financial Services 82,669
10,000 Penta-Ocean Construction Home Builders 75,510
5,000 Pioneer Electronic Corp. Household Appliances &
Furnishings 111,689
6,000 Q.P. Corp. Conglomerates 60,713
7,000 Renown<F81> Apparel & Textiles 29,402
11,000 Sagami Railway Co. Railroads & Equipment 53,659
4,000 Sanden Corp. Electrical Equipment 29,707
7,000 Sankyo Aluminium Ind. Co. Aluminum 44,370
2,000 Sanrio Co.<F81> Retail Trade 25,774
7,000 Sanwa Shutter Corp. Construction Materials 66,021
11,000 Sapporo Breweries Food & Beverage 106,057
3,000 Sega Enterprises Toys, Amusement & Sporting
Goods 152,928
3,000 Seiko Corporation Retail Trade 25,774
4,000 Seino Transportation Co. Railroads & Equipment 70,259
7,000 Seiyu Apparel & Textiles 98,229
6,000 Settsu Corp. <F81> Paper 22,510
2,000 Shimachu Co. Retail Trade 67,777
4,000 Shimano, Inc. Leisure 81,333
10,000 Shionogi & Co. Drugs & Healthcare 92,024
12,000 Shiseido Co. Drugs & Healthcare 151,210
2,000 Shochiku Co. Leisure 23,102
3,000 Shokusan Jutaku Sogo Co. <F81> Construction Materials 12,544
29,000 Showa Denko K.K. <F81> Chemicals 95,785
3,000 Skylark Co. Hotels & Restaurants 65,582
9,000 Snow Brand Milk Food & Beverage 65,209
5,000 Sumitomo Forestry Co. Forest Products 76,846
16,000 Sumitomo Heavy Ind.<F81> Industrial Machinery 69,190
18,000 Sumitomo Marine & Fire Insurance 171,142
17,000 Sumitomo Metal Mining Co. Non-ferrous Metals 172,020
13,000 Sumitomo Osaka Cement Co. Construction Materials 68,751
3,000 Taiyo Yuden Co. Electronics 35,511
6,000 Takara Shuzo Co. Food & Beverage 68,732
4,000 Takara Standard Co. Household Products 46,203
8,000 Takashimaya Co. Retail Trade 130,590
3,000 Takuma Co. Telecommunication Services 46,108
7,000 Tanabe Seiyaku Co. Drugs & Healthcare 59,071
27,000 Teijin Chemicals 148,203
8,000 Teikoku Oil Co. International Oil 60,331
6,000 Toa Corporation Home Builders 42,041
24,000 Tobu Railway Co. Railroads & Equipment 165,873
500 Toho Co Leisure 86,869
5,000 Tokyo Broadcasting Broadcasting 83,528
6,000 Tokyo Dome Corp. Leisure 109,398
3,000 Tokyo Style Co. Apparel & Textiles 53,267
6,000 Tokyo Tatemono Co. Real Estate 37,402
8,000 Tokyotokeiba Co. Leisure 37,344
17,000 Tosoh Corp. <F81> Chemicals 79,681
11,000 Toto Construction Materials 162,761
5,000 Toyo Engineering Electronics 36,514
2,000 Toyo Exterior Co. Home Builders 56,513
4,000 Toyo Kanetsu K.K. Petroleum Services 21,918
19,000 Toyobo Co. Apparel & Textiles 77,085
9,000 Toyoda Automatic Loom Industrial Machinery 186,435
6,000 Tsubakimoto Chain Co. Industrial Machinery 42,327
2,000 Tsugami Corp. Industrial Machinery 12,028
23,000 Ube Industries <F81> Chemicals 94,630
2,000 Uni-Charm Corp. Household Products 56,513
1,000 Uniden Corp. Household Products 21,956
13,000 Unitika <F81> Chemicals 41,077
6,000 Yamaguchi Bank Banks 102,525
7,000 Yamaha Corp. Toys, Amusement & Sporting
Goods 125,626
11,000 Yamato Transport Co. Trucking & Freight
Forwarding 134,409
7,000 Yamazaki Baking Co. Food & Beverage 143,000
8,000 Yokogawa Electric Corp. Electronics 93,170
---------
16,284,539
----------
Malaysia - 0.6%
1,000 AMMB Holdings Financial Services 15,138
2,000 Amsteel Corp. Steel 1,620
1,000 Aokam Perdana Paper 2,025
1,500 Berjaya Group Leisure 1,101
1,000 Berjaya Leisure Leisure 1,019
1,000 Commerce Asset-Holding Financial Services 6,817
2,000 DCB Holdings Financial Services 7,298
1,000 Edaran Otomobil Nasional Retail 8,541
1,000 Ekran Building Construction 3,950
400 Faber Group <F81> Leisure 401
3,000 Golden Hope Plantations Food & Beverage 5,365
1,000 Guinness Anchor Food & Beverage 2,566
1,000 Highlands & Lowlands Food & Beverage 1,885
1,000 Hong Leong Properties Real Estate 1,291
1,000 Hume Industries Construction Materials 5,694
1,000 Idris Hydraulic <F81> Financial Services 1,524
1,000 IGB Corp. Real Estate 1,007
3,000 IOI Corp. Chemicals 4,499
1,000 Jaya Tiasa Holdings Forest Products 6,215
1,000 Johan Holdings Industrial Machinery 1,243
1,000 Kedah Cement Holdings Construction Materials 1,989
1,000 Kemayan Corp. Agricultural Machinery 1,893
2,500 Kuala Lumpur Kepong Food & Beverage 6,416
1,500 Land & General Forest Products 4,000
1,000 Landmarks Hotels & Restaurants 1,564
1,000 Leader Universal Holdings Electrical Equipment 2,947
125 Lion Land Berhad Real Estate 158
4,500 Magnum Corp. Leisure 7,795
1,000 Malayan Cement Construction Materials 2,486
4,000 Malayan United Industries Financial Services 4,058
3,333 Malaysia Int'l. Shipping Containers & Glass 10,692
1,000 Malaysia Mining Corp. Mining 1,965
2,000 Malaysian Airline System Air Travel 6,616
1,000 Malaysian Mosaics Real Estate 1,604
1,000 Malaysian Pacific Electronics 3,990
2,000 Malaysian Resources Corp. Mining 5,133
2,000 MBF Capital Financial Services 2,999
3,000 Metroplex Real Estate 3,007
166 Metroplex Rights, Expire
6/04/96 Real Estate -
2,000 Mulpha International Conglomerates 2,181
2,000 Multi-Purpose Holdings Conglomerates 3,481
1,000 Mycom Real Estate 1,347
1,000 Nestle Food & Beverage 8,501
1,000 New Straits Times Newspapers 5,373
2,000 Pan Malaysia Cemt Construction Materials 2,486
1,000 Perlis Plantations Mining 4,210
2,000 Perusahaan Otomobil Automobiles 9,864
1,000 Promet<F81> Industrial Machinery 1,103
2,000 Public Bank Banks 5,734
1,000 Rashid Hussain Financial Services 3,529
1,000 RJ Reynolds Food & Beverage 3,168
1,000 Rothmans Pall Mall Tobacco 10,225
1,000 Selangor Properties Real Estate 1,163
1,000 Shell Refining Co. International Oil 3,068
1,000 Sungei Way Holdings Building Construction 4,611
2,000 TA Enterprise <F81> Financial Services 3,449
1,000 Tan Chong Motor Holdings Industrial Machinery 1,612
2,000 Technology Resources
Industries <F81> Conglomerates 6,817
1,000 Time Engineering Industrial Machinery 2,927
1,000 UMW Holdings Industrial Machinery 3,288
2,252 UTD Engineers Industrial Machinery 15,442
1,500 YTL Corp. Home Builders 7,519
---------
259,609
---------
Netherlands - 2.5%
6,977 Ahold NV Retail 343,584
1,200 Getronics NV Computers & Business
Equipment 83,222
182 Hollandsche Beton Groep Home Builders 31,184
1,339 IHC Caland NV Home Builders 52,517
5,111 KLM <F81> Air Travel 171,270
5,686 Koninklijke KNP BT NV Paper 135,531
1,825 Kon Hoogovensnv Steel 68,601
1,267 Nedlloyd (Kon.) Trucking & Freight
Forwarding 27,763
918 OCE-Van der Grinten NV Computers & Business
Equipment 84,262
1,706 Pakhoed (Kon.) Petroleum Services 42,652
1,731 Stad Rotterdam Insurance 58,006
1,646 Stork NV Industrial Machinery 46,236
---------
1,144,828
---------
Norway - 0.9%
1,000 Aker A Conglomerates 18,534
200 Aker B Conglomerates 3,312
1,400 Bergesen (Dy) A Trucking & Freight
Forwarding 25,096
600 Bergesen (Dy) B, Trucking & Freight
Non-Voting Preferred Forwarding 10,300
700 Dyno Industrier Chemicals 15,260
1,200 Elkem Non-ferrous Metals 15,769
1,775 Hafslund Nycomed A Drugs & Healthcare 52,043
822 Hafslund Nycomed B Drugs & Healthcare 22,915
500 Helikopter Service Miscellaneous 5,659
1,100 Kvaerner As Agricultural Machinery 45,119
800 Leif Hoegh & Co. Trucking & Freight
Forwarding 11,546
700 Norske Skogsindust A Paper 21,375
200 Norske Skogsindust B Paper 5,712
1,200 Orkla A Food & Beverage 58,518
100 Orkla B Food & Beverage 4,557
700 Petroleum Geo-Services <F81> Energy Equipment & Services 22,438
1,300 Transocean As<F81> Miscellaneous 36,338
7,200 Uni Storebrand Ord <F81> Insurance 34,236
500 Unitor Containers & Glass 8,431
---------
417,158
---------
New Zealand - 0.4%
36,575 Brierley Investments Limited Investment Companies 34,415
23,700 Carter Holt Harvey Forest Products 56,157
1,249 Fisher &Paykel Industries Household Appliances &
Furnishings 4,100
5,025 Fletcher Challenge -
Building Shares<F81> Forest Products 11,907
10,050 Fletcher Challenge -
Paper Shares<F81> Forest Products 20,707
11,057 Fletcher Challenge -
Forest Division<F81> Forest Products 14,277
5,025 Fletcher Challenge Ltd Forest Products 10,768
7,500 Lion Nathan Limited Food & Beverage 18,698
1,300 Wilson & Horton Publishing 8,571
---------
179,600
---------
Singapore - 0.5%
2,000 Amcol Hldgs Electronics 5,718
5,400 City Developments Real Estate 47,240
1,000 Cycle & Carriage Automobiles 12,091
6,000 DBS Land Real Estate 24,324
1,000 First Capital Corp. Hotels & Restaurants 3,172
2,400 Fraser & Neave Food & Beverage 26,629
2,000 Hai Sun Hup Group Trucking & Freight Forwarding 1,465
1,000 Haw Par Bros. Int'l. Conglomerates 2,532
2,000 Hotel Properties Hotels & Restaurants 3,869
1,000 Inchcape Berhad Business Services 3,556
1,000 Jurong Shipyard Industrial Machinery 5,725
3,000 Keppel Corp. Industrial Machinery 27,098
2,000 Lum Chang Holdings Home Builders 1,977
1,200 Metro Holdings Retail Trade 4,353
2,000 Natsteel Steel 4,011
4,000 Neptune Orient Lines Nol Trucking & Freight Forwarding 4,438
1,000 Overseas Union Ent. Leisure 5,725
2,000 Parkway Holdings Real Estate 5,974
1,000 Shangri-La Hotel Hotels & Restaurants 3,542
200 Singapore Press Holdings Publishing 3,784
3,000 Straits Steamship Land Conglomerates 10,455
2,000 Straits Trading Co. Non-ferrous Metals 5,206
3,000 United Overseas Land Real Estate 6,252
8,000 UTD Industrial Corp. Conglomerates 8,137
---------
227,273
---------
Spain - 3.8%
583 Acerinox Aluminum 65,820
2,250 Aguas De Barcelona Business Services 77,285
6,750 Argentaria Corp Bc Banks 272,925
11,564 Autopistas CESA (Acesa) Business Services 120,752
8,750 BCO Central Hispano Registered Banks 183,079
800 Alba (Corp Financiera) Conglomerates 63,060
1,450 Corporacion Mapfire Insurance 72,859
2,700 Dragados Y Construction Home Builders 37,097
2,300 Ebro Agricolas Food & Beverage 26,274
1,000 ENCE (Empresa Nacl Celulosa) Forest Products 14,564
1,050 Fasa Renault Automobiles 22,258
800 Fomento Const Y Contra Home Builders 68,148
1,800 Gas Natural SDG SA Electric Utilities 326,733
1,050 Metrovacesa Real Estate 34,376
1,900 Urbis (Inmobilaria) Real Estate 7,697
350 Portland Valderrivas Construction Materials 21,708
500 Prosegur Compania Business Services 18,215
1,950 Tabacalera Food & Beverage 88,796
15,450 Union Electrica Fenosa Electric Utilities 92,309
2,400 Uralita Construction Materials 23,553
2,050 Vallehermoso SA Real Estate 37,018
1,100 Viscofan Aluminum 17,013
407 Zardoya Otis Industrial Machinery 40,262
---------
1,731,801
---------
Sweden - 1.7%
2,000 AGA Series A Chemicals 32,366
1,700 AGA Series B Chemicals 27,261
1,900 Atlas Copco Series A Industrial Machinery 35,639
900 Atlas Copco Series B Construction & Mining 17,080
400 Autoliv Industrial Machinery 21,773
1,200 Electrolux Series B Household Appliances &
Furnishings 60,377
300 Esselte Series A Electronics 5,958
800 Euroc Series A Construction Materials 22,950
800 Hennes & Mauritz Series B Retail Trade 55,081
400 Securitas Series B Business Services 22,950
8,500 Skand. Enskilda Banken
Series A Banks 63,775
1,600 Skandia Foersaekrings Insurance 36,485
2,000 Skanska Series B Home Builders 63,113
800 SKF Series A Construction & Mining 18,184
1,000 SKF Series B Industrial Machinery 23,245
1,900 Stadshypotek Ab Miscellaneous 41,369
4,200 Stora Kopparbergs Series A Forest Products 56,537
1,000 Stora Kopparbergs Series B Forest Products 13,388
3,000 Svenska Cellulosa Forest Products 56,493
3,200 Svenska Handelsbk Series A Banks 65,438
300 Svenska Handelsbk Series B Banks 5,826
1,800 Trelleborg Series B Mining 24,230
---------
769,518
---------
Switzerland - 2.1%
214 Adia Sa Business Services 46,765
65 Alusuisse-Lonza Hldg Non-ferrous Metals 52,169
130 Alusuisse-Lonza Hldg
Registered Aluminum 104,756
80 Danzas Holding Household Products 17,225
15 Fischer (Georg) Inhaber AG Industrial Machinery 17,836
15 Fischer (Georg) Inhaber AG
Registered Industrial Machinery 3,459
45 Forbo Holding Registered Construction Materials 18,764
215 Holderbk FN Glarus Financial Services 162,196
70 Interdiscount Holding <F81> Retail Trade 1,688
50 Interdiscount Holding
Warrants, Expire 11/15/96 Retail Trade 8
15 Jelmoli Holding AG Retail Trade 8,556
45 Jelmoli Holding AG Registered Retail Trade 5,061
10 Kuoni Reisen Series B Leisure 20,085
120 Merkur Holding AG Registered Retail Trade 24,681
15 Moevenpick Holdings Leisure 5,302
10 Moevenpick Holdings Registered Leisure 3,535
40 Schindler Holding AG Industrial Machinery 43,705
35 Schindler Holding AG Warrants,
Expire 12/16/96 Industrial Machinery 73
55 SGS Holding Business Services 123,725
65 Sika Finanz Inhaber AG Construction Materials 15,249
115 SMH AG Neuenburg Toys, Amusement &
Sporting Goods 76,962
470 SMH AG Neuenburg Registered Toys, Amusement &
Sporting Goods 69,856
35 Sulzer AG Industrial Machinery 22,495
70 Sulzer AG Registered Industrial Machinery 47,128
70 Swissair <F81> Air Travel 69,005
---------
960,284
---------
Total Common and Preferred Stocks 98.4%
(Cost $42,432,256) 44,928,500
----------
SHORT-TERM INVESTMENTS - 1.4%
United States - 1.4%
635,000 Financial Square Prime Obligation Fund
Investment Company 635,000
---------
Total Short-Term Investments (Cost $635,000) 635,000
---------
Total Investments - 99.8% (Cost $43,067,256) 45,563,500
----------
Other Assets, less Liabilities - 0.2% 114,757
--------
TOTAL NET ASSETS - 100.0% $45,678,257
===========
<F81> Non-income producing
See notes to the financial statements.
BALANCED FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
MIDCORE GROWTH FUND
SPECIAL GROWTH FUND
INTERNATIONAL EQUITY FUND
NOTES TO THE FINANCIAL STATEMENTS
(Unaudited)
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 Stock 500 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 - No provision for federal income taxes has been made
since the Funds have complied to date with the provisions of the Internal
Revenue Code available to regulated investment companies and intend to continue
to so comply in future years.
c)Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, administration and
certain shareowner service fees. Expenses that are not directly attributable to
a portfolio are typically allocated among the Company's portfolios in proportion
to their respective net assets, number of shareowner accounts, or net sales,
where applicable. Net investment income other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative net asset value of outstanding shares of each
class of shares at the beginning of the day (after adjusting for the current
day's capital share activity of the respective class).
d)Distributions to Shareowners - Dividends from net investment income are
declared and paid quarterly, for the Balanced, Growth and Income and Equity
Index Funds and annually for the MidCore Growth, Special Growth and
International Equity Funds. Distributions of net realized capital gains, if any,
will be declared at least annually.
e)Futures Contracts - The Equity Index Fund may utilize futures contracts to a
limited extent. The primary risks associated with the use of futures contracts
include an imperfect correlation between the change in market value of the
securities held by the Fund and the prices of futures contracts and the
possibility of an illiquid market. Futures contracts are valued based upon their
quoted daily settlement prices. Changes in initial settlement value are
accounted for as unrealized appreciation (depreciation) until the contracts are
terminated at which time realized gains and losses are recognized.
f)When-Issued Securities - The Funds may purchase securities on a when-issued
or delayed delivery basis. Although the payment and interest terms of these
securities are established at the time the purchaser enters into the agreement,
these securities may be delivered and paid for at a future date, generally
within 45 days. The Fund records purchases of when-issued securities and
reflects the values of such securities in determining net asset value in the
same manner as other portfolio securities. The Fund segregates and maintains at
all times cash, cash equivalents, or other high-quality liquid debt securities
in an amount at least equal to the amount of outstanding commitments for when-
issued securities.
g)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. Foreign currency exchange gains
and losses included in net appreciation (depreciation) on foreign currency and
net realized gains and losses on foreign currency include foreign currency gains
and losses between trade date and settlement date on investment securities
transactions, foreign currency transactions and the difference between the
amounts of interest and dividends recorded on the books of the Fund and the
amount actually received. The portion of the foreign currency gains and losses
related to fluctuation in exchange rates between the initial purchase trade date
and subsequent sale trade date of a security is included in realized gains and
losses on investment transactions.
i)Other - Investment and shareowner transactions are recorded no later than the
first business day after the trade date. The Funds determine the gain or loss
realized from the investment transactions by comparing the original cost of the
security lot sold with the net sale proceeds. Dividend income is recognized on
the ex-dividend date or as soon as information is available to the Funds, and
interest income is recognized on an accrual basis. Generally accepted accounting
principles require that permanent financial reporting and tax differences be
reclassified to capital stock.
3.CAPITAL SHARE TRANSACTIONS
On January 9, 1995, all previously existing series of shares of each Fund were
reclassified as Series A shares. Effective January 9, 1995, Institutional
shareowners exchanged their Series A shares for the Funds' Institutional series
shares. Transactions in capital shares for the Funds, in thousands, were as
follows:
<TABLE>
<CAPTION>
BALANCED GROWTH AND INCOME EQUITY INDEX
FUND FUND FUND
--------------------- --------------------- ---------------------
Amount Shares Amount Shares Amount Shares
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Six months ended April 30, 1996:
Series A shares:
Shares sold $ 4,180 157 $ 9,358 322 $ 10,098 227
Shares issued to owners in
reinvestment of dividends 680 26 2,134 78 348 8
Shares redeemed (1,986) (74) (3,206) (111) (1,909) (43)
--------- --------- --------- --------- --------- ---------
Net increase $ 2,874 109 $ 8,286 289 $ 8,537 192
========= ========= ========= ========= ========= =========
Series Institutional shares:
Shares sold $ 45,112 1,710 $ 29,204 1,009 $ 60,993 1,378
Shares issued to owners in
revinvestment of dividends 3,162 121 7,768 283 2,669 61
Shares redeemed (33,130) (1,256) (17,611) (607) (17,113) (388)
--------- --------- --------- --------- --------- ---------
Net increase $ 15,144 575 $ 19,361 685 $ 46,549 1,051
========= ========= ========= ========= ========= =========
Period from Jan. 10,
to Oct. 31, 1995:
Series A shares:
Reclassification of previous class $101,671 4,722 $159,134 7,206 $107,441 3,306
Exchange out to Series Institutional
shares (85,645) (3,978) (125,287) (5,674) (94,927) (2,921)
Shares sold 4,044 166 5,748 225 6,511 171
Shares issued to owners in
reinvestment of dividends 279 12 358 14 222 5
Shares redeemed (1,911) (79) (5,802) (235) (4,042) (107)
--------- --------- --------- --------- --------- ---------
Net increase $ 18,438 843 $ 34,151 1,536 $ 15,205 454
========= ========= ======== ========= ========= =========
Series Institutional shares:
Exchange in from Series A shares $ 85,645 3,978 $125,287 5,674 $ 94,927 2,921
Shares sold 34,956 1,469 27,970 1,112 32,025 852
Shares issued to owners in
revinvestment of dividends 1,518 62 1,572 61 1,803 47
Shares redeemed (34,962) (1,473) (24,218) (956) (17,405) (458)
--------- --------- --------- --------- --------- ---------
Net increase $ 87,157 4,036 $130,611 5,891 $111,350 3,362
========= ========= ========= ========= ======== =========
Period from Nov. 1, 1994
to Jan. 9, 1995:
Previous class:
Reclassification to
Series A shares $(101,671) (4,722) $(159,134) (7,206) $(107,441) (3,306)
Shares sold 12,996 608 5,431 241 5,050 155
Shares issued to owners in
reinvestment of dividends 528 24 4,848 218 868 27
Shares redeemed (4,138) (193) (8,009) (358) (3,100) (95)
--------- --------- --------- --------- --------- ---------
Net (decrease) $ (92,285) (4,283) $(156,864) (7,105) $(104,623) (3,219)
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
MIDCORE GROWTH SPECIAL GROWTH INTERNATIONAL
FUND FUND EQUITY FUND
------------------- ------------------ --------------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Six months ended April 30, 1996:
Series A shares:
Shares sold $ 2,940 106 $ 16,214 416 $ 1,315 66
Shares issued to owners in
reinvestment of dividends - - 9,553 257 40 2
Shares redeemed (887) (32) (9,559) (246) (155) (8)
-------- -------- -------- -------- -------- --------
Net increase $ 2,053 74 $ 16,208 427 1,200 60
========== ======== ========== ======== ========= ========
Series Institutional shares:
Shares sold $ 27,280 991 $ 83,692 2,171 $ 8,902 448
Shares issued to owners in
revinvestment of dividends - - 42,665 1,144 713 37
Shares redeemed (20,859) (758) (73,469) (1,920) (1,684) (85)
-------- -------- -------- -------- -------- --------
Net increase $ 6,421 233 $ 52,888 1,395 7,931 400
========== ======== ========== ======== ========= ========
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)
========== ======== ========== ======== ========= ========
</TABLE>
4.INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the period ended April 30, 1996, were
as follows:
<TABLE>
<CAPTION>
BALANCED GROWTH AND EQUITY MIDCORE SPECIAL INTERNATIONAL
FUND INCOME FUND INDEX FUND GROWTH FUND GROWTH FUND EQUITY FUND
-------- ------------ ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Purchases:
U.S. Government $ 5,700 - - - - -
Other 47,349 $79,714 $52,675 $41,635 $308,128 $107,475
Sales:
U.S. Government 6,212 - - - - -
Other 38,874 56,119 1,101 41,524 290,694 86,912
</TABLE>
Equity Index Fund transactions in futures contracts during the period October
31, 1995 to April 30, 1996, in thousands, were as follows:
AGGREGATE
NUMBER OF FACE VALUE OF
CONTRACTS CONTRACTS <F82>
---------- ---------------
Outstanding at October 31, 1995 29 $ 8,435
Contracts opened 199 63,292
Contracts closed (191) (59,801)
----- --------
Outstanding at April 30, 1996 37 $11,926
===== ========
<F82> 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 April 30, 1996 were as follows:
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
---------- -------------
S&P 500 Financial Futures Contract
Expiration date 6/96 <F83> 37 $188
<F83> At April 30, 1996, U.S. Treasury Bills of $592, 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 April 30, 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 $31,506 $59,892 $67,657 $55,621 $169,762 $ 4,605
(Depreciation) (1,994) (571) (2,781) (1,152) (7,362) (2,208)
-------- ------- ------- ------- -------- -------
Net unrealized
appreciation
on investments $29,512 $59,321 $64,876 $54,469 $162,400 $2,397
======= ======= ======= ======= ======== ======
At April 30, 1996, the cost of investments, in thousands, for federal income
tax purposes was $123,477, $196,490, $170,247, $123,011, $448,652 and $43,067
for the Balanced, Growth and Income, Equity Index, MidCore Growth, Special
Growth and International Equity Funds, respectively.
At October 31, 1995, the Midcore Growth Fund had accumulated net realized
capital loss carryovers, in thousands, of $295 expiring in 2001. The MidCore
Growth Fund had accumulated net realized capital loss carryovers, in thousands,
of $4,704, expiring in 2002. To the extent the MidCore Growth Fund realizes
future net capital gains, taxable distributions to its shareowners will be
offset by any unused capital loss carryover.
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 April 30, 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% <F84><F85>
Fees waived $152 $18 - $8 - $154
<F84> 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.
<F85> 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 six months ended
April 30, 1996, $48, $79, $66, $54, $186 and $14 of administration fees, in
thousands, were voluntarily waived for the Balanced, Growth and Income, Equity
Index, MidCore Growth, Special Growth and International Equity Funds,
respectively.
The Company has entered into Servicing Agreements with certain Service
Organizations, including FIRMCO affiliates, for the Series A class of shares.
The Service Organizations are entitled to receive fees from the Funds up to the
annual rate of 0.25% of the average daily net asset value of the Series A Shares
for certain support and/or distribution services to customers of the Service
Organizations who are beneficial owners of Fund Series A Shares. These services
may include assisting customers in processing purchase, exchange and redemption
requests; processing dividend and distribution payments from the Funds; and
providing information periodically to customers showing their positions in Fund
Series A Shares. Service Organization fees, in thousands, paid by the Balanced,
Growth and Income, Equity Index, MidCore Growth, Special Growth and
International Equity Funds to FIRMCO affiliates aggregated $30, $60, $28, $15,
$116 and $3 respectively, for the six months ended April 30, 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.
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
For Account Balances and
Investor Services
1-800-228-1024
1-414-287-3808
Portico Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
NASD Ref#X96-0520-021
- ---------------------------------------------------------------------------
April 30, 1996
SEMI-ANNUAL REPORT
RETAIL CLASS
PORTICO FUNDS
BALANCED FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
MIDCORE GROWTH FUND
SPECIAL GROWTH FUND
INTERNATIONAL EQUITY FUND
NOTICE TO INVESTORS
- -Shares of Portico Funds:
- ARE NOT INSURED BY THE FDIC, the US Government or any other governmental
agency;
- are not bank deposits or obligations of or guaranteed by Firstar Bank, its
parent company or its affiliates;
- are subject to investment risks, including possible loss of principal; and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and an
independent third-party distributor.
- -Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
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 THE FINANCIAL STATEMENTS..................................61-66
May 1996
DEAR SHAREOWNER:
INVESTMENT REVIEW
Bond and stock market returns diverged these past six months with the Lehman
Brothers Government/Corporate Bond Index gaining a mere .04%, while the Standard
& Poor's 500 Stock Index jumped 13.8%. Portico's fixed-income funds, which
maintain a duration "neutral" maturity strategy, posted returns which were in-
line with the performance results of each fund's respective index. Portico's
growth equity funds benefited from a shift in stock market investment trends
from "big and passive" (the S&P 500) to small and active management.
The combined assets of your Portico Fund Family today exceed $3.6 billion, a
266% increase from just five years ago. Your fund managers remain committed to
providing above-average risk-adjusted returns over complete market cycles. The
matching of our clearly defined investment strategies and risk profiles to your
unique investment objectives allows the Portico Funds to translate investment
returns into investor returns.
MARKET OUTLOOK
Last December, we stressed the resiliency of the current five-year-old economic
expansion. The first quarter 2.8% real Gross Domestic Product (GDP) report
reinforces our 1996 outlook for continued moderate growth. On the inflation
front, we now believe a cyclical bump in monthly consumer price reports caused
by higher fuel and grain prices will bring annualized inflation in consumer
prices to 3%. With the rise in interest rates so far this year, we find real, or
inflation-adjusted rates across the maturity spectrum. While we continue to
believe interest rates will fall back to lower levels with a corresponding rise
in bond prices, we expect considerable volatility in the bond market for the
balance of 1996. This recent volatility reaffirms our fixed-income investment
policy of remaining duration neutral -- a strategy which allows us to maintain a
consistent management approach and eliminate the temptation to "zig when we
should zag."
Our estimate for a 1996 federal budget compromise was too optimistic, although
the final budget accord does decrease domestic spending for the first time in a
generation -- but at a slower rate than we expected.
Our market outlook is predicated on the following economic and investment
trends:
1.A cyclical bump in monthly consumer price index (CPI) reports bringing
annualized inflation to 3%.
2.Growing foreign investment in U.S. stocks and bonds. According to Federal
Reserve data, U.S. investments overseas of $184 billion from 1990 to 1995,
dwarfs aggregate foreign purchases of U.S. securities of $11 billion. However,
a stronger dollar, along with America's relatively robust economy, favors U.S.
stocks and bonds.
3.Disinflationary productivity gains. Computer memory prices, a good example,
have dropped 50-60% since last summer allowing personal computers to do more
for less money.
4.A continuation of the democratic and republican stalemate with neither party
gaining a clear legislative majority in the November election. However, the
line item veto, Federal Reserve Chairman Greenspan's reappointment, and the
decrease in domestic spending are each investor friendly initiatives.
5.Continued emergence of the United States as the "market of choice" for an
increasingly one market world of global investors. Over the past five years,
retail sales domestically have grown 5% annually while German and Japanese
retail sales were flat.
6.Slow to no corporate profit growth. With the S&P 500 after-tax profit margins
at peak cyclical levels and return on equity at an all-time high, we expect
flat to modest big company profits in 1996.
7.Continued outperformance of our small and active common stock strategy based
on above-market earnings gains and improving valuations (price/earnings
ratios).
8.Treasury bond yields ranging from 6 to 7.5% along with above-average interest
rate volatility. Because real, or inflation-adjusted interest rates remain
attractive, we continue to advocate our core index fixed-income strategy as a
bulwark of investor portfolios.
We appreciate your continued confidence in the Portico Family of Funds and urge
you to read the portfolio reviews that follow.
J. Scott Harkness, CFA Mary Ellen Stanek, CFA
Chairman/Chief President
Investment Officer
Firstar Investment Research & Management Company
BALANCED FUND
- -------------
After an outstanding fiscal 1995, Portico Balanced Fund is off to a strong start
for fiscal year 1996, returning 10.1% for the first six months of this time
period. The investment strategy of the Fund continues to emphasize common stocks
for capital appreciation and fixed-income securities for stability and current
income. Current asset allocation is 61% common stocks, 32% bonds, and 7% money
market.
The equity portion of the portfolio, which benefited from a rebound in retail
holdings, returned 17.3% -- easily surpassing the returns of leading stock
indices. However, the fixed-income portion of the Fund posted a return which was
basically flat -- this was due to the recent rise in interest rates. For
comparison purposes, over the first six months of this reporting period, the
Russell MidCap Index increased 15.1%, the S&P 500 Index increased 13.8% and the
Lehman Brothers Government/Corporate Bond Index was up .04%.
Continued economic expansion with modest interest rate movement and moderate
inflation have been the biggest factors influencing stock prices. This has
allowed corporations to continue to show strong profit growth. On the equity
side, the Fund continues to be overweighted in consumer cyclicals (specifically
retail stocks), finance, healthcare and technology. New holdings over the six
months include Vencor, Inc., PanAmSat Corporation, Teva Pharmaceutical
Industries, Ltd., and Green Tree Financial Corporation.
The fixed-income portion of the Fund currently favors the finance, banking,
brokerage, and asset-backed sectors. Our added-value work in the portfolio
continues to be accomplished in three broad areas: issue selection, sector
allocation, and yield curve positioning. Although the return of the fixed-income
portion was flat during this reporting period, it kept pace with that of the
Lehman Index, which represents the bond market as a whole.
The overall outlook for the Fund for the next six months is positive. Strong
corporate profits, moderate inflation and positive cash flow are all conducive
to rising equity prices. On the bond side, we remain optimistic as interest
rates at current levels are sufficiently high enough to produce attractive real,
or inflation-adjusted yields.
We appreciate your continued support and confidence in Portico Balanced Fund.
PORTFOLIO MANAGER PROFILE
- -------------------------
R. Bart Wear, CFA, Senior Vice President and Senior Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) and Teresa R. Westman, CFA,
Senior Vice President and Senior Portfolio Manager co-manage the Fund, Teresa
since its inception on March 30, 1992, and Bart since January 20, 1994. Bart has
been with Firstar since 1983 and has 13 years of investment management
experience. He received his BS from Arizona State University in 1982. 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. Bart and Teresa are both Chartered
Financial Analysts.
This chart assumes an initial investment of $10,000 made on 3/30/92 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
3/30/92 10/92 10/93 10/94 10/95 4/96
------- ----- ----- ----- ----- -----
PORTICO BALANCED
FUND - A - NO LOAD $10,000 10,372 11,771 11,662 13,941 15,328
PORTICO BALANCED
FUND - A - LOAD<F86> $ 9,600 9,958 11,302 11,197 13,386 14,717
This chart assumes an initial investment of $10,000 made on 3/30/92 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
Average Annual Rate of Return (%)
for Periods Ended April 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 3/30/92
------------ ------ ------- --------
Portico Balanced Fund - A
- No Load 10.0 23.7 12.3 11.0
Portico Balanced Fund - A
- Load<F86> 5.5 18.8 10.8 9.9
Lehman Brothers Gov't/Corp Bond
Index<F87> 0.0 8.7 5.5 7.7
Russell MidcapTM Index<F88> 15.1 30.8 16.9 16.7
S&P 500 Stock Index<F89> 13.8 30.2 17.2 15.7
<F86> Reflects maximum sales charge of 4.00%.
<F87> 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.
<F88> The Russell Midcap/TM Index is defined as the lowest 800 companies in the
Russell 1000 Index, as ranked by total market capitalization. The Russell
Midcap/TM Index accurately captures the medium-sized universe of securities.
<F89> The S&P 500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. The load performance for
the Series A Shares has been restated to reflect the impact of the sales charge.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
TOP 5 HOLDINGS 4/30/96
- ---------------------------------------------
Vencor, Inc. 2.1%
- ---------------------------------------------
Mirage Resorts, Inc. 1.5%
- ---------------------------------------------
First USA, Inc. 1.4%
- ---------------------------------------------
CUC International, Inc. 1.4%
- ---------------------------------------------
GTECH Holdings Corporation 1.3%
- ---------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/96
- ---------------------------------------------
$153,808,800
- ---------------------------------------------
GROWTH AND INCOME FUND
- ----------------------
Portico Growth and Income Fund is off to a solid start for the first six months
of fiscal 1996. For this time period, the Fund's return of 16.1% outperformed
the returns of the Wilshire Top 750 Index (+13.7%), the Standard & Poor's 500
Index (+13.8%), and the Lipper Growth & Income Fund Index (+13.8%). This strong
relative performance can be attributed to successful sector exposure -- the Fund
was overweighted in companies that produce capital goods and services
(classified as top performing sectors of the Wilshire Top 750) such as Tyco
International Ltd., Dover Corporation, Service Corporation International and
Avery Dennison Corporation and underweighted in two of the poorer performing
sectors: technology and utilities.
Early in this six-month reporting period, we sold holdings in companies which
had reached our price targets and which we believed might be subject to downward
earnings revision given our more moderate outlook for economic growth. These
sales decisions included Hercules, Inc., Kimberly Clark Corporation, and Tribune
Company. We also reduced our exposure to the retail sector after participating
in strong gains in the group. We sold our holdings in The Gap, Inc. and
Nordstrom, Inc. and have reduced holdings in both May Department Stores Company
and Intimate Brands, Inc.
In the last six months, we have added Praxair, Inc., Belden, Inc., and
Cincinnati Bell, Inc. to the portfolio. We believe these companies have the
potential to report solid earnings growth in a slow growth environment, while
trading at price-to-earnings ratios that do not reflect their underlying growth
rates. Additionally, we have continued to emphasize exposure to investment
themes which focus on products and services for the baby boom generation, as
well as products and services that benefit from development in emerging
economies. New investments which should take advantage of baby boomers' savings
and spending habits include Reliastar Financial Corporation (fixed and variable
annuity products), United Asset Management Corporation (money management
services focusing on the employee benefit market), and Northern Trust
Corporation (trust services). Companies in the Fund positioned to gain from
infrastructure spending in emerging economies include General Electric Company
(a provider of power generation equipment, appliances, and industrial products &
systems), Lucent Technologies, Inc. and Motorola, Inc. (designers and
manufacturers of telecommunications equipment worldwide). We have also invested
in Gillette Company, Duracell International, Inc., and Procter & Gamble Company
to profit from the growth in consumer buying power as emerging markets develop.
As we are forecasting moderate economic growth for the second half of 1996, down
from the surprisingly strong increase of +2.8% in the first quarter of 1996, we
will continue to focus on companies with the capability to deliver solid
earnings growth in a more modest growth environment. By consistently employing
the investment philosophy of the Growth and Income Fund, we feel the Fund is
well positioned to achieve its objectives and benefit long-term investors.
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 three 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.
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95 4/96
-------- ----- ----- ----- ----- ----- ----- ----
PORTICO GROWTH AND
INCOME FUND - A
- NO LOAD $10,000 9,304 11,688 12,368 13,596 13,846 17,232 20,030
PORTICO GROWTH AND
INCOME FUND - A
- LOAD<F90> $9,600 8,933 11,223 11,875 13,054 13,294 16,585 19,232
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
Average Annual Rate of Return (%)
for Periods Ended April 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 5 Years 12/29/89
------------ ------ ------- ------ ---------
Portico Growth and Income
Fund - A - No Load 16.0 30.9 15.0 13.0 11.6
Portico Growth and Income
Fund - A - Load<F90> 11.3 25.6 13.5 12.1 10.9
Wilshire Top 750 Index<F91> 13.7 31.3 17.3 15.2 13.6
S&P 500 Stock Index<F92> 13.8 30.2 17.2 15.0 13.5
Lipper Growth & Income
Index<F93> 13.8 27.1 15.4 14.4 12.6
Lipper Equity Income
Index<F93> 12.4 24.1 13.6 14.0 12.0
<F90> Reflects maximum sales charge of 4.00%.
<F91> 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.
<F92> The S&P 500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
<F93> The Lipper Growth & Income and Equity Income Indices are equally weighted
indices of the 30 largest mutual funds within their respective investment
objective categories, adjusted for the reinvestment of capital gains
distributions and income dividends.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. 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, 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 4/30/96
- ----------------------------------------------
Pfizer, Inc. 2.7%
- ----------------------------------------------
Service Corporation International 2.6%
- ----------------------------------------------
Tyco International, Ltd. 2.6%
- ----------------------------------------------
Alco Standard Corporation 2.3%
- ----------------------------------------------
Federal National mortgage Association 2.2%
- ----------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
Total Fund Net Assets 4/30/96
- ----------------------------------------------
$256,078,355
- ----------------------------------------------
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 $45.82 on April 30, 1996
represents a return of 13.53% for the six months then ended, which was
comparable with the return of the S&P 500 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.
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 seven years of
investment management experience. He received his B in 1987 and his MBA in 1989
from Marquette University. Dan is a Chartered Financial Analyst.
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95 4/96
-------- ----- ----- ----- ----- ----- ----- -----
PORTICO EQUITY
INDEX FUND - A
- NO LOAD 10,000 8,854 11,767 12,869 14,644 15,157 19,068 21,163
PORTICO EQUITY
INDEX FUND - A
- LOAD,<F94> 9,600 8,501 11,297 12,355 14,059 14,552 18,305 20,750
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
Average Annual Rate of Return (%)
for Periods Ended April 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 5 Years 12/29/89
------------ ------ ------- ------- --------
Portico Equity Index Fund
- A - No Load 13.4 29.4 16.5 14.3 12.9
Portico Equity Index Fund
- A - Load<F94> 8.8 24.2 14.9 13.4 12.2
S&P 500 Stock Index<F95> 13.8 30.2 17.2 15.0 13.5
<F94> Reflects maximum sales charge of 4.00%.
<F95> The S&P 500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. 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 4/30/96
- ---------------------------------------------
General Electric 2.5%
- ---------------------------------------------
Exxon Corporation 2.0%
- ---------------------------------------------
Coca-Cola Company 1.9%
- ---------------------------------------------
AT&T Corporation 1.9%
- ---------------------------------------------
Royal Dutch Petroleum 1.5%
- ---------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
Total Fund Net Assets 4/30/96
- ---------------------------------------------
$231,770,093
- ---------------------------------------------
MIDCORE GROWTH FUND
- -------------------
Portico MidCore Growth Fund's performance of 15.6% for the first six months of
fiscal 1996 outpaced the returns of both the Wilshire Top 750 and the S&P 500
indices, which returned 13.7% and 13.8%, respectively. This outperformance was
due in part to a heavier sector weighting exposure in consumer cyclicals and
finance - both of which experienced above market gains. Specifically, retail
stocks, after lagging most of 1995, rebounded based on a stonger consumer and an
acceleration in sales. Despite higher interest rates, finance holdings did well
as a strong economy improved the outlook for fewer credit defaults.
Rather than concentrating on investing in cyclical or defensive sectors, our
focus in the Fund has been on individual stock selection. In particular, we
continue to emphasize companies that can deliver at or above expectation
earnings, despite more difficult comparisons versus 1995. We continue to
overweight finance based on our belief of moderate interest rates and positive
cash flow to asset accumulators. Our enthusiasm for the healthcare sector
centers on a continued migration (aging baby boomers) towards managed care.
While we are currently overweighted in technology, our stock selection is
focused on companies that demonstrate persistent "annuity-like" earnings such
as Ceridian Corporation, Reuters Holding, SunGard Data Systems, Inc., and First
Data Corporation. Based on slowing orders and negative operating leverage, we
have generally avoided semiconductor, software and hardware companies.
The only change in portfolio strategy was the increase in our energy weighting
from 1% to its current level of 5%. This was based on improved fundamentals such
as industry consolidation and rising prices.
The Fund is off to a good start for fiscal 1996 and, given the forecast for
extended economic expansion -- however moderate -- we are optimistic about the
continuation of providing superior returns to relevant indices for the balance
of the year.
PORTFOLIO MANAGER PROFILE
- -------------------------
R. Bart Wear, CFA, Senior Vice President and Senior Portfolio Manager of Firstar
Investment Research & Management Company (FIRMCO) has managed the Fund since its
inception on December 29, 1992. Bart has been with Firstar since 1983 and has 13
years of investment management experience. He received his BS from Arizona State
University in 1982. Bart is a Chartered Financial Analyst.
12/29/92 10/93 10/94 10/95 4/96
-------- ----- ----- ----- -----
PORTICO MIDCORE
GROWTH FUND - A - NO LOAD 10,000 10,753 10,813 12,927 14,893
PORTICO MIDCORE
GROWTH FUND - A - LOAD<F96> 9,600 10,324 10,382 12,387 14,299
This chart assumes an initial investment of $10,000 made on 12/29/92
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
Average Annual Rate of Return (%)
for Periods Ended April 30, 1996
----------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 12/29/92
------------ ------ ------- --------
Portico MidCore Growth Fund
- A - No Load 15.4 29.7 15.8 12.7
Portico MidCore Growth Fund
- A - Load<F96> 10.8 24.5 14.2 11.3
Wilshire Top 750 Index<F97> 13.7 31.3 17.3 15.8
S&P 500 Stock Index<F98> 13.8 30.2 17.2 16.0.
<F96> Reflects maximum sales charge of 4.00%.
<F97> 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.
<F98> The S&P 500 Stock Index is an index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. The load performance for
the Series A shares has been restated to reflect the impact of the sales charge.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
Top 5 Holdings 4/30/96
- ---------------------------------------------
First USA, Inc. 3.5%
- ---------------------------------------------
Vencor, inc. 3.4%
- ---------------------------------------------
Tyco International, LTD. 3.4%
- ---------------------------------------------
MBNA Corporation 3.4%
- ---------------------------------------------
Gtech Holdings Corporation 3.2%
- ---------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
Total Fund Net Assets 4/30/96
- ---------------------------------------------
$176,131,238
- ---------------------------------------------
SPECIAL GROWTH FUND
- -------------------
Buoyed by record mutual fund cash flow and above consensus earnings, the stock
market, as represented by the S&P 500, gained 13.8% for the six-month period
ended April 30, 1996. By comparison, Portico Special Growth Fund gained 15.7%.
Because we contend interim investment results are random (primarily a function
of interest rate and corporate profit changes), we encourage investors to focus
on longer term results. The average annual rate of return chart at the bottom of
the next page provides a longer-term perspective of the Fund's since inception
performance with relevant stock market indices. Portico Special Growth Fund's
price/earnings ratio, a commonly used stock market valuation indicator, is now
21.3 times 1996 earnings, up from 17 times earnings last fall.
During the six months ended April 1996, Dollar General Corporation, Consolidated
Stores Corporation, Health Management Associates, Inc., The Charles Schwab
Corporation and CompUSA, Inc. were among the Fund's top gainers. For the same
time period, Department 56, Inc., Biomet, Inc., Loewen Group, Inc., Toll
Brothers, Inc. and Cellstar Corporation were among the Fund's top losers.
We continue to manage Portico Special Growth Fund for long-term capital
appreciation by selecting owner-operated, unit growth companies with self
funding balance sheets. Portico Special Growth Fund's performance edge over
stock market averages since its inception is largely due to our persistent
adherence to these portfolio management criteria.
PORTFOLIO MANAGER PROFILE
- -------------------------
J. Scott Harkness, CFA, Chief Investment Officer of Firstar Investment Research
& Management Company (FIRMCO), Joseph J. Docter, CFA, Senior Vice President and
Senior Portfolio Manager, Mark D. Westman, CFA, CPA, Vice President and
Portfolio Manager, and Todd M. Krieg, Vice President and Portfolio Manager
manage the Fund - Scott and Joe since its inception on December 28, 1989, Mark
since January 1994 and Todd since September 1994. Scott has been with Firstar
for 17 years and has more than 18 years of investment management experience. He
received his BA from the University of Wisconsin in 1977. Joe has been with
Firstar since 1984 and has 12 years of investment management experience. He
received his BBA and his MBA from the University of Wisconsin in 1981 and 1984,
respectively. Mark has been with Firstar for three years and received his BA
from Augustana College in 1985 and his MBA from the University of Chicago in
1993. Todd has been with Firstar for four years and received his BA from
Williams College in 1983 and a JD from Georgetown University in 1989. Scott, Joe
and Mark are all Chartered Financial Analysts.
12/29/89 10/90 10/91 10/92 10/93 10/94 10/95 4/96
-------- ----- ----- ----- ----- ----- ----- ----
PORTICO SPECIAL
GROWTH FUND - A
- NO LOAD 10,000 8,953 14,346 15,617 18,138 18,641 23,406 27,040
PORTICO SPECIAL
GROWTH FUND - A
- LOAD<F99> 9,600 8,598 13,774 14,994 17,416 17,898 22,474 25,963
This chart assumes an initial investment of $10,000 made on 12/28/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
Average Annual Rate of Return (%)
for Periods Ended April 30, 1996
-----------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 3 Years 5 Years 12/28/89
------------ ------ ------- ------ ---------
Portico Special Growth
Fund - A - No Load 15.5 36.0 18.5 16.6 17.0
Portico Special Growth
Fund - A - Load<F99> 10.9 30.6 16.9 15.7 16.2
Wilshire MidCap 750
Index<F100> 16.5 33.0 18.0 17.5 14.6
S&P 500 Stock Index<F101> 13.8 30.2 17.2 15.0 13.5
<F99> Reflects maximum sales charge of 4.00%.
<F100> 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.
<F101> The S&P 500 Stock Index is an index of 500 selected common stocks, most
of which are listed on the New York Stock Exchange. The Index is heavily
weighted toward stocks with large market capitalizations and represents
approximately two-thirds of the total market value of all domestic common
stocks.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. 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 shares)
TOP 5 HOLDINGS 4/30/96
- ---------------------------------------------
The Charles Schwab Corporation 2.9%
- ---------------------------------------------
Vencor, Inc. 2.7%
- ---------------------------------------------
Amtel Corporation 2.7%
- ---------------------------------------------
Heath Management Associates, Inc. 2.6%
- ---------------------------------------------
Consolidated Stores Corporation 2.2%
- ---------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
Total Fund Net Assets 4/30/96
- ---------------------------------------------
$614,879,638
- ---------------------------------------------
INTERNATIONAL EQUITY FUND
- -------------------------
Portico International Equity Fund seeks capital appreciation through investment
in foreign equity securities of small- to medium-sized companies. The Fund uses
a different approach to investing relative to our actively managed Portico
equity funds. The Fund is comprised of a representative portion of the small- to
medium-sized companies found in the Morgan Stanley Capital International Europe,
Australia and Far East (EAFE) Index. Instead of focusing on the entire index,
the Fund invests in companies with a market capitalization range of $250 million
to $5 billion.
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
April 30, 1996, the International Equity Fund owned 805 companies located
throughout Europe and the Pacific Basin. State Street Global Advisors, with over
16 years of international investing experience and $41 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.
Market conditions over the last six months have improved for the Fund. The
economic recovery in Japan looks to have resumed after a difficult 1995.
Economic growth in Europe will be slow but sustainable, due to continuous
restructuring and cost-cutting measures implemented over the last several years.
The U.S. Dollar has strengthened relative to the Japanese Yen and German
Deutschmarke. Although this has had a negative effect on the Fund's total return
(due to the fact the Fund does not hedge the currency component), we are pleased
with the fund's overall performance as compared with the EAFE Index.
The structured selection process using GDP weightings and small-to medium-sized
market capitalization ranges will not necessarily produce comparable performance
to the EAFE Index, as has been the case since the Fund began operations on April
28, 1994. Nevertheless, we believe that long-term performance of small- to
medium-sized international firms will provide higher total returns than
investments in large international firms or the EAFE Index. As we have
maintained in previous reports, investing internationally continues to be an
effective strategy to diversify your portfolio while offering the potential for
attractive returns over the long term.
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 seven
years of investment management experience. He received his b In 1987 and his MBA
in 1989 from Marquette University. Dan is a Chartered Financial Analyst.
4/28/94 10/94 10/95 4/96
------- ----- ----- -----
PORTICO INTERNATIONAL
EQUITY FUND - A - NO LOAD 10,000 9,995 9,600 10,779
PORTICO INTERNATIONAL
EQUITY FUND - A - LOAD<F102> 9,600 9,597 9,218 10,349
This chart assumes an initial investment of $10,000 made on 4/28/94 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
Average Annual Rate of Return (%)
for Periods Ended April 30, 1996
---------------------------------
Fiscal Since Inception
Year-To-Date 1 Year 4/28/94
------------ ------ --------
Portico International Equity
Fund - No Load 12.3 7.9 3.8
Portico International Equity
Fund - Load<F102> 7.8 3.6 1.7
GDP EAFE Index<F103> 13.0 11.0 7.1
EAFE Index<F104> 13.2 11.4 8.5
<F102> Reflects maximum sales charge of 4.00%.
<F103> 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.
<F104> The MSCI/EAFE Index is the most recognized international index and is
weighted by market capitalization.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Portico Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund 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 4/30/96
- ----------------------------------------------
Japan 35.6%
- ----------------------------------------------
Germany 14.7%
- ----------------------------------------------
France 10.6%
- ----------------------------------------------
Italy 8.6%
- ----------------------------------------------
Great Britain 7.3%
- ----------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
Total Fund Net Assets 4/30/96
- ----------------------------------------------
$45,678,257
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
(Amounts in thousands, except per share data)
April 30, 1996 GROWTH AND EQUITY MIDCORE SPECIAL INTERNATIONAL
(Unaudited) BALANCED INCOME INDEX GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
--------- --------- ------ ------- ------ -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $123,235,
$196,432, $169,789, $122,879,
$448,488 and $43,067, respectively) $152,989 $255,811 $235,122 $177,479 $611,052 $ 45,567
Foreign currency (cost $1,469) - - - - - 1,462
Income receivable 797 387 332 125 237 158
Capital shares sold 29 201 63 29 66 22
Receivable for securities sold 420 217 431 346 6,665 9
Receivable for foreign currency
purchased - - - - - 9
Other assets 16 7 7 13 7 83
-------- -------- -------- -------- -------- --------
Total Assets 154,251 256,623 235,955 177,992 618,027 47,310
-------- -------- -------- -------- -------- --------
LIABILITIES:
Payable for securities purchased 307 285 3,763 1,693 2,599 1,363
Payable for foreign currency purchased - - - - - 9
Capital shares redeemed - 16 - 1 7 -
Payable to affiliates 114 218 90 145 503 201
Accrued expenses and other liabilities 21 26 332 22 38 59
-------- -------- -------- -------- -------- --------
Total Liabilities 442 545 4,185 1,861 3,147 1,632
-------- -------- -------- -------- -------- --------
NET ASSETS $153,809 $256,078 $231,770 $176,131 $614,880 $ 45,678
======== ======== ======== ======== ======== ========
NET ASSETS CONSIST OF:
Capital stock $120,884 $184,319 $164,907 $123,253 417,012 $ 42,965
Undistributed net investment
income (loss) 268 259 314 (13) (313) (3)
Undistributed accumulated net
realized gains (losses) on:
Investments 2,904 12,121 1,027 (1,709) 35,617 223
Unrealized net appreciation
(depreciation) on:
Investments 29,753 59,379 65,334 54,600 162,564 2,500
Futures contracts - - 188 - - -
Foreign currency - - - - - (7)
-------- -------- -------- -------- -------- --------
Total Net Assets $153,809 $256,078 $231,770 $176,131 $614,880 $45,678
======== ======== ======== ======== ======== ========
SERIES A:
Net assets $ 26,315 $ 55,623 $ 29,597 $ 13,849 $107,928 $ 3,053
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000 500,000 500,000
Shares issued and outstanding 952 1,825 646 469 2,535 145
Net asset value and redemption price
per share <F105> $27.64 $30.47 $45.79 $29.53 $42.58 $21.02
====== ====== ====== ====== ====== ======
Maximum offering price per share <F105> $28.79 $31.74 $47.70 $30.76 $44.35 $21.90
====== ====== ====== ====== ====== ======
SERIES INSTITUTIONAL:
Net assets $127,494 $200,455 $202,173 $162,282 $506,952 $ 42,625
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000 500,000 500,000
Shares issued and outstanding 4,611 6,576 4,413 5,483 11,865 2,025
Net asset value, redemption price
and offering price per share <F105> $27.65 $30.48 $45.82 $29.60 $42.73 $21.05
====== ====== ====== ====== ====== ======
<FN>
<F105> Amounts may not recalculate due to rounding.
See notes to the financial statements.
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Amounts in thousands)
BALANCED FUND GROWTH AND INCOME FUND
------------------- ----------------------
Six months Year Six months Year
ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31,
1996 1995 1996 1995
--------- ------- ------- --------
(Unaudited) (Unaudited)
OPERATIONS:
Net investment income (loss) $ 1,316 $ 2,444 $ 1,915 $ 2,975
Net realized gain on:
Investments 3,212 3,757 12,179 8,861
Foreign currency - - - -
Change in unrealized appreciation
(depreciation) on:
Investments 8,810 14,596 19,830 28,643
Foreign currency - - - -
-------- -------- -------- --------
Net increase (decrease) in net
assets resulting from operations 13,338 20,797 33,924 40,479
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Shares sold 49,292 51,996 38,562 39,149
Shares issued to owners in
reinvestment of dividends 3,842 2,325 9,902 6,778
Shares redeemed (35,116) (41,011) (20,817) (38,029)
-------- -------- -------- --------
Net increase 18,018 13,310 27,647 7,898
-------- -------- -------- --------
DISTRIBUTIONS TO SHAREOWNERS:<F106>
From net investment income - (540) - (925)
From net realized gains - - - (4,244)
-------- -------- -------- --------
- (540) - (5,169)
-------- -------- -------- --------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS:<F106>
From net investment income (203) (285) (344) (374)
From net realized gains (486) - (1,827) -
-------- -------- -------- --------
(689) (285) (2,171) (374)
-------- -------- -------- --------
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREOWNERS:<F106>
From net investment income (1,073) (1,555) (1,488) (1,711)
From net realized gains (2,169) - (7,010) -
-------- -------- -------- --------
(3,242) (1,555) (8,498) (1,711)
-------- -------- -------- --------
TOTAL INCREASE IN NET ASSETS 27,425 31,727 50,902 41,123
NET ASSETS:
Beginning of period 126,384 94,657 205,176 164,053
-------- -------- -------- --------
End of period (including undistributed
net investment income (loss) of $268,
$226, $259, $175, $314, $245, $(13),
$(1), $(313), $0, $(4) and $156,
respectively) $153,809 $126,384 $256,078 $205,176
======== ======== ======== ========
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (continued)
(Amounts in thousands)
INTERNATIONAL
EQUITY INDEX FUND MIDCORE GROWTH FUND SPECIAL GROWTH FUND EQUITY FUND
--------------------- ------------------- ------------------- -------------------
Six months Year Six months Year Six months Year Six months Year
ended ended ended ended ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31,
1996 1995 1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 1,891 $ 2,949 $ (14) $ 145 $ (313) $ (148) $ 19 $ 165
Net realized gain on:
Investments 1,442 1,377 3,361 2,657 36,788 57,101 191 463
Foreign currency - - - - - - 37 225
Change in unrealized appreciation
(depreciation) on:
Investments 19,792 26,047 19,777 20,823 45,292 49,078 4,341 (1,826)
Foreign currency - - - - - - (10) 1
------ ------ ------ ------ ------ ------- ------ ------
Net increase (decrease) in net assets
resulting from operations 23,125 30,373 23,124 23,625 81,767 106,031 4,578 (972)
------ ------ ------ ------ ------ ------- ------ ------
CAPITAL SHARE TRANSACTIONS:
Shares sold 71,091 43,586 30,220 49,755 99,906 130,385 10,217 12,055
Shares issued to owners in
reinvestment of dividends 3,017 2,893 - 222 52,218 2,330 753 59
Shares redeemed (19,022) (24,547) (21,746) (42,006) (83,028) (110,262) (1,839) (2,015)
-------- -------- -------- -------- -------- --------- ------- -------
Net increase 55,086 21,932 8,474 7,971 69,096 22,453 9,131 10,099
-------- -------- -------- -------- -------- --------- ------- -------
DISTRIBUTIONS TO SHAREOWNERS <F106>
From net investment income - (731) - (137) - - - (55)
From net realized gains - (201) - - - (2,526) - (8)
-------- -------- -------- -------- -------- -------- ------- -------
- (932) - (137) - (2,526) - (63)
-------- -------- -------- -------- -------- -------- ------- -------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS <F106>
From net investment income (197) (226) - (1) - - (6) -
From net realized gains (165) - - - (9,689) - (34) -
-------- -------- -------- -------- -------- -------- ------- ------
(362) (226) - (1) (9,689) - (40) -
-------- -------- -------- -------- -------- -------- ------- ------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS <F106>
From net investment income (1,626) (1,941) - (122) - - (174) -
From net realized gains (1,222) - - - (47,791) (45) (637) -
-------- -------- -------- -------- -------- -------- ------- ------
(2,848) (1,941) - (122) (47,791) (45) (811) -
-------- -------- -------- -------- -------- -------- ------- ------
TOTAL INCREASE IN NET ASSETS 75,001 49,206 31,598 31,336 93,383 125,913 12,858 9,064
NET ASSETS:
Beginning of period 156,769 107,563 144,533 113,197 521,497 395,584 32,820 23,756
End of period (including
undistributed net investment
income (loss) of $268, $226, $259,
$175, $314, $245, $(13), $(1),
$(313), $0, $(4) and $156,
respectively) $231,770 $156,769 $176,131 $144,533 $614,880 $521,497 $45,678 $32,820
======== ======== ======== ======== ======== ======== ======= =======
<FN>
<F106>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 April 30, 1996.
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
BALANCED FUND
-------------------------------------------------------------------------------------------
Six months ended Year ended Year ended March 30, 1992<F107>
April 30, 1996 October 31, 1995<F110> October 31, through
Series Series
Series A Institutional Series A Institutional 1994 1993 Oct. 31, 1992
-------- ------------- -------- ------------- ----- ----- --------------
(Unaudited)
<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 0.22 0.25 0.49 0.53 0.44 0.47 0.28
Net realized and unrealized
gains (losses) on securities 2.30 2.30 3.77 3.78 (0.66) 2.27 0.44
------- ------- ------- ------- ------- ------- -------
Total from investment operations 2.52 2.55 4.26 4.31 (0.22) 2.74 0.72
------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.22) (0.25) (0.47) (0.51) (0.44) (0.47) (0.23)
Distributions from capital gains (0.55) (0.55) - - - - -
------- ------- ------- ------- ------- ------- -------
Total distributions (0.77) (0.80) (0.47) (0.51) (0.44) (0.47) (0.23)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $27.64 $27.65 $25.89 $25.90 $22.10 $22.76 $20.49
======= ======= ======= ======= ======= ======= =======
Total return <F111><F112> 9.95% 10.08% 19.55% 19.79% (0.93)% 13.49% 3.72%
Supplemental data and ratios:
Net assets, in thousands, end
of period $26,315 $127,494 $21,832 $104,552 $94,657 $82,099 $45,653
Ratio of net expenses
to average net assets <F113> 1.00% 0.75% 0.94% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income
to average net assets <F113> 1.69% 1.94% 2.05% 2.24% 2.03% 2.24% 2.48%
Portfolio turnover rate <F114> 34.42% 34.42% 61.87% 61.87% 59.77% 71.60% 29.04%
Average commission rate paid <F114> $0.0581 $0.0581
See notes to the financial statements.
FINANCIAL HIGHLIGHTS
GROWTH AND INCOME FUND
---------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F110> Year ended October 31,
Series Series ----------------------------------
Series A Institutional Series A Institutional 1994 1993<F108> 1992 1991
-------- ------------- -------- ------------- ---- ----- ----- ----
(Unaudited)
<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 $17.99
Income from investment operations:
Net investment income 0.21 0.25 0.37 0.42 0.43 0.56 0.69 0.79
Net realized and unrealized gains
(losses) on securities 4.03 4.03 5.14 5.14 (0.03) 1.63 0.56 3.75
------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations 4.24 4.28 5.51 5.56 0.40 2.19 1.25 4.54
------ ------ ------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income (0.20) (0.24) (0.38) (0.42) (0.42) (0.57) (0.70) (0.81)
Distributions from capital gains (1.19) (1.19) (0.60) (0.60) (0.59) (0.19) - -
------ ------ ------ ------ ------ ------ ------ ------
Total distributions (1.39) (1.43) (0.98) (1.02) (1.01) (0.76) (0.70) (0.81)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $30.47 $30.48 $27.62 $27.63 $23.09 $23.70 $22.27 $21.72
====== ====== ====== ====== ====== ====== ====== ======
Total return <F111><F112> 15.96% 16.09% 24.75% 25.00% 1.84% 9.93% 5.82% 25.63%
Supplemental data and ratios:
Net assets, in thousands, end
of period $55,623 $200,455 $42,424 $162,752 $164,053 $160,704 $135,713 $103,414
Ratio of net expenses to average
net assets <F113> 1.15% 0.90% 1.09% 0.90% 0.90% 0.88% 0.75% 0.75%
Ratio of net investment income to
average net assets <F113> 1.46% 1.71% 1.51% 1.70% 1.89% 2.44% 3.16% 3.93%
Portfolio turnover rate <F114> 27.18% 27.18% 47.85% 47.85% 56.85% 86.24% 31.25% 28.05%
Average commission rate paid <F114> $0.0585 $0.0585
<FN>
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
EQUITY INDEX FUND
-------------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F110> Year ended October 31,
Series Series ----------------------------------
Series A Institutional Series A Institutional 1994 1993<F108> 1992 1991
-------- ------------- -------- ------------- ---- ----- ----- ----
(Unaudited)
<S> <C> <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 $21.63
Income from investment operations:
Net investment income (loss) 0.36 0.42 0.70 0.76 0.77 0.75 0.73 0.73
Net realized and unrealized
gains on securities 5.08 5.09 7.70 7.71 0.35 3.32 1.86 6.31
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations 5.44 5.51 8.40 8.47 1.12 4.07 2.59 7.04
------- ------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.37) (0.42) (0.68) (0.74) (0.75) (0.75) (0.73) (0.74)
Distributions from capital gains (0.35) (0.35) (0.06) (0.06) - - (0.01) (0.06)
------- ------- ------- ------- ------- ------- ------- -------
Total distributions (0.72) (0.77) (0.74) (0.80) (0.75) (0.75) (0.74) (0.80)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $45.79 $45.82 $41.07 $41.08 $33.41 $33.04 $29.72 $27.87
====== ====== ====== ====== ====== ====== ====== ======
Total return <F111><F112> 13.36% 13.53% 25.79% 26.02% 3.51% 13.79% 9.36% 32.90%
Supplemental data and ratios:
Net assets, in thousands, end
of period $29,597 $202,173 $18,663 $138,106 $107,563 $83,820 $81,070 $51,481
Ratio of net expenses
to average net assets <F113> 0.67% 0.42% 0.66% 0.46% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income
to average net assets <F113> 1.73% 1.98% 2.14% 2.34% 2.38% 2.32% 2.48% 2.82%
Portfolio turnover rate <F114> 0.60% 0.60% 4.61% 4.61% 13.28% 13.78% 5.50% 1.38%
Average commission rate paid <F114> $0.0599 $0.0599
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
MIDCORE GROWTH FUND
-------------------------------------------------------------------------------------------
Six months ended Year ended Year Dec. 29, 1992<F107>
April 30, 1996 October 31, 1995<F110> ended through
------------------------ ----------------------- October 31, October 31,
Series A Series Inst'l Series A Series Inst'l 1994 1993
-------- ------------- -------- ------------- ---- -----
(Unaudited)
<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 (loss) (0.03) 0.00 (0.02) 0.03 0.06 0.09
Net realized and unrealized
gains on securities 3.98 3.99 4.16 4.16 0.06 1.32
------ ------ ------ ------ ------ ------
Total from investment operations 3.95 3.99 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 $29.53 $29.60 $25.58 $25.61 $21.47 $21.40
====== ====== ====== ====== ====== ======
Total returns <F111><F112> 15.44% 15.58% 19.31% 19.55% 0.56% 7.53%
Supplemental data and ratios:
Net assets, in thousands,
end of period $13,849 $162,282 $10,105 $134,428 $113,197 $84,467
Ratio of net expenses to
average net assets <F113> 1.15% 0.90% 1.09% 0.90% 0.88% 0.89%
Ratio of net investment income
to average net assets <F113> (0.25)% 0.00% (0.06)% 0.13% 0.30% 0.57%
Portfolio turnover rate <F114> 27.25% 27.25% 49.84% 49.84% 33.24% 46.29%
Average commission rate paid <F114> $0.0588 $0.0588
<FN>
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
SPECIAL GROWTH FUND
-------------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F110> Year ended October 31,
----------------------------------
Series A Series Inst'l Series A Series Inst'l 1994 1993 1992<F109> 1991
-------- ------------- -------- ------------- ---- ----- ----- ----
(Unaudited)
<S> <C> <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 $17.72
Income from investment operations:
Net investment income (loss) (0.05) (0.02) (0.07) 0.00 0.04 0.07 0.17 0.27
Net realized and unrealized
gains on securities 5.82 5.86 8.49 8.49 0.85 4.47 2.18 10.34
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations 5.77 5.84 8.42 8.49 0.89 4.54 2.35 10.61
------- ------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income - - - - (0.04) (0.08) (0.18) (0.28)
Distributions from capital gains (4.59) (4.58) (0.21) (0.21) - (0.62) (1.72) -
------- ------- ------- ------- ------- ------- ------- -------
Total distributions (4.59) (4.58) (0.21) (0.21) (0.04) (0.70) (1.90) (0.28)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $42.48 $42.73 $41.40 $41.47 $33.19 $32.34 $28.50 28.05
====== ====== ====== ====== ====== ====== ====== ======
Total return <F111><F112> 15.53% 16.21% 25.56% 25.79% 2.77% 16.15% 8.86% 60.23%
Supplemental data and ratios:
Net assets, in thousands, end
of period $107,928 $506.952 $87,269 $434,228 $395,584 $347,130 $205,207 $96,017
Ratio of net expenses
to average net assets <F113> 1.14% 0.89% 1.09% 0.90% 0.89% 0.88% 0.76% 0.75%
Ratio of net investment income
to average net assets <F113> (0.32)% (0.07)% (0.19)% 0.00% 0.13% 0.24% 0.65% 1.10%
Portfolio turnover rate <F114> 58.37% 58.37% 79.25% 79.25% 69.74% 58.80% 31.94% 48.39%
Average commission rate paid <F114> $0.0577 $0.0577
<FN>
See notes to the financial statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------------
Six months ended Year ended
April 30, 1996 October 31, 1995<F110> April 28, 1994<F107>
-------------------------------- ------------------------------ through
Series A Series Institutional Series A Series Institutional Oct. 31, 1994
-------- -------------------- --------- -------------------- --------------
(Unaudited)
<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 (loss) (0.01) 0.00 0.08 0.12 0.04
Net realized and unrealized
gains (losses) on securities 2.32 2.33 (0.87) (0.87) (0.05)
------ ------ ------ ------ ------
Total from investment operations 2.31 2.33 (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 $21.02 $21.05 $19.15 $19.19 $19.99
====== ====== ====== ====== ======
Total return <F111><F112> 12.27% 12.38% (3.95)% (3.75)% (0.05)%
Supplemental data and ratios:
Net assets, in thousands,
end of period $3,053 $42,625 $1,633 $31,187 $23,756
Ratio of net expenses
to average net assets <F113> 1.75% 1.50% 1.70% 1.50% 1.49%
Ratio of net investment income
to average net assets <F113> (0.14)% 0.11% 0.46% 0.66% 0.44%
Portfolio turnover rate <F114> 5.37% 5.37% 15.12% 15.12% 6.55%
Average commission rate paid <F114> $.0148 $.0148
<FN>
<F107> Commencement of operations.
<F108> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F109> Effective February 3, 1992, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F110> 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.
<F111> 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, and
for the period ended April 30, 1996, for all Funds.
<F112> The total return does not reflect the 4% front-end sales charge for
Series A.
<F113> 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, and for
the period ended April 30, 1996, for all Funds.
<F114> 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.
See notes to the financial statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
(Amounts in thousands)
Six Months Ended April 30, 1996
(Unaudited)
<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 $ 215 $ 2,309 $ 2,030 $ 467 $ 789 -
Foreign (net of withholding
taxes of $44) - - - - - $ 272
Interest income:
Domestic 1,650 700 291 248 1,414 36
------ ------ ------ ------ ------ ------
1,865 3,009 2,321 715 2,203 308
------ ------ ------ ------ ------ ------
EXPENSES:
Investment advisory fees 519 861 241 595 2,020 285
Administration fees 83 138 116 95 323 23
Shareowner servicing and accounting costs 49 67 50 36 123 60
Service organization fees - Series A 30 61 29 15 117 3
Custody fees 27 23 26 20 64 48
Federal and state registration fees 10 9 9 8 14 12
Professional fees 14 14 13 13 14 15
Reports to shareowners 7 13 4 5 21 4
Amortization of organization costs 3 - - 1 - 3
Directors' fees and expenses 3 3 4 2 3 2
Other 4 2 4 1 3 2
------ ------ ------ ------ ------ ------
Total expenses before waiver 749 1,191 496 791 2,702 457
Less: Waiver of expenses (200) (97) (66) (62) (186) (168)
------ ------ ------ ------ ------ ------
Net Expenses 549 1,094 430 729 2,516 289
------ ------ ------ ------ ------ ------
NET INVESTMENT INCOME (LOSS) 1,316 1,915 1,891 (14) (313) 19
------ ------ ------ ------ ------ ------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on:
Investments 3,212 12,179 1,442 3,361 36,788 191
Foreign currency - - - - - 37
Change in unrealized appreciation
(depreciation) on:
Investments 8,810 19,830 19,792 19,777 45,292 4,341
Foreign currency - - - - - (10)
------ ------ ------ ------ ------ ------
Net gain on investments
and foreign currency 12,022 32,009 21,234 23,138 82,080 4,459
------ ------ ------ ------ ------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $13,338 $33,924 $23,125 $23,124 $81,767 $4,578
======= ======= ======= ======= ======= ======
<FN>
See notes to the financial statements
</TABLE>
BALANCED FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market Value
of Shares (in thousands)
- --------- --------------
COMMON STOCKS - 62.7%
Air Transportation - 0.0%
3,300 Atlantic SE Airlines, Inc. $ 82
------
Auto Parts - 0.1%
1,700 APS Holding Corporation<F115> 31
4,400 Copart, Inc.<F115> 120
------
151
------
Bio-Technology - 0.0%
10,600 Perseptive Biosystems, Inc.<F115> 75
------
Business Machines & Software - 0.7%
4,700 Acxiom Corporation<F115> 129
5,100 In Focus Systems, Inc.<F115> 258
4,600 Mylex Corporation<F115> 112
4,500 National Instruments Corporation<F115> 110
3,600 Network General Corporation<F115> 159
6,400 Synopsys, Inc.<F115> 264
------
1,032
------
Business Services - 4.7%
8,700 H & R Block, Inc. 305
34,700 Ceridian Corporation<F115> 1,657
300 Corestaff, Inc.<F115> 12
6,700 Danka Business Systems PLC ADR 322
22,961 First Data Corporation 1,745
2,025 FIserv, Inc.<F115> 62
20,900 General Motors Corporation - Class E 1,178
7,300 Interim Services, Inc.<F115> 317
8,900 Medaphis Corporation<F115> 410
6,700 National Data Corporation 236
29,100 Sungard Data Systems, Inc.<F115> 967
------
7,211
------
Capital Goods - 0.3%
10,400 York International Corporation 499
------
Chemicals - 0.5%
34,200 Airgas, Inc.<F115> 735
------
Communications & Media - 2.9%
8,300 Andrew Corporation<F115> 398
3,300 Evergreen Media Corporation - Class A<F115> 130
14,100 Infinity Broadcasting Corporation<F115> 409
13,100 Interpublic Group of Companies, Inc. 612
55,300 PanAmSat Corporation<F115> 1,839
27,900 Paxson Communications Corporation<F115> 415
8,800 Reuters Holdings, PLC ADR 595
------
4,398
------
Computers - 0.7%
4,700 Ciber, Inc.<F115> 187
3,350 McAfee Associates, Inc.<F115> 205
2,600 Microsoft Corporation<F115> 295
7,200 Reynolds & Reynolds - Class A 333
------
1,020
------
Conglomerates - 0.1%
4,700 ITI Technologies, Inc.<F115> 130
------
Consumer Products - 0.4%
19,000 Newell Company 542
1,200 USA Detergents, Inc.<F115> 49
------
591
------
Consumer Services - 0.1%
3,100 Stewart Enterprises, Inc. - Class A 142
------
Containers - 0.2%
11,000 Sealed Air Corporation<F115> 389
------
Distribution - 1.3%
32,300 Alco Standard Corporation 1,870
5,000 Peak Technologies Group<F115> 121
------
1,991
------
Drugs - 1.9%
1,000 Biovail Corp International<F115> 28
25,000 Elan Corporation, PLC ADR<F115> 1,653
3,000 Forest Laboratories, Inc. - Class A<F115> 138
5,200 Ivax Corporation 152
21,300 Teva Pharmaceutical Industries Ltd. ADR 956
------
2,927
------
Electrical Equipment - 1.6%
55,500 AVX Corporation 1,318
3,200 Cable Design Technologies<F115> 106
9,600 Kemet Corporation<F115> 229
23,687 Molex, Inc. - Class A 711
4,400 PRI Automation, Inc.<F115> 124
------
2,488
------
Electronics - 0.5%
4,400 Checkpoint Systems, Inc.<F115> 132
20,400 KLA Instruments Corporation<F115> 589
5,100 Recoton Corporation<F115> 97
500 Thermoquest Corporation<F115> 8
------
826
------
Entertainment & Leisure - 3.8%
74,000 GTECH Holdings Corporation<F115> 2,100
17,400 Hollywood Entertainment Corporation 287
44,000 Mirage Resorts, Inc.<F115> 2,305
6,400 Movie Gallery, Inc.<F115> 195
5,400 Regal Cinemas, Inc.<F115> 220
5,000 Station Casinos, Inc.<F115> 66
17,436 Viacom, Inc. - Class B<F115> 715
------
5,888
------
Financial Services - 6.5%
6,600 Advanta Corporation - Class B 331
15,500 AMBAC, Inc. 754
2,400 Amresco, Inc.<F115> 41
2,100 ContiFinancial Corporation<F115> 67
46,400 Federal National Mortgage Association 1,421
39,600 First USA, Inc. 2,228
400 First USA Paymentech, Inc.<F115> 17
32,900 Green Tree Financial Corporation 1,110
74,000 MBNA Corporation 2,100
6,500 Olympic Financial Ltd.<F115> 145
10,800 Quick and Reilly Group, Inc. 329
56,500 The Charles Schwab Corporaiton 1,384
------
9,927
------
Health Care Services & Supplies - 9.6%
7,600 American Medical Response, Inc.<F115> 281
35,825 Columbia/HCA Healthcare Corporation 1,903
1,200 Community Health Systems, Inc.<F115> 52
1,200 Compdent Corporation<F115> 53
45,600 Foundation Health Corporation<F115> 1,784
3,900 Genesis Health Ventures, Inc.<F115> 115
23,700 Health Care & Retirement Corporation<F115> 874
33,112 Health Management Associates, Inc. - Class A 1,059
26,300 Healthsource, Inc.<F115> 898
14,000 Healthsouth Corporation<F115> 520
30,600 Lincare Holdings, Inc.<F115> 1,188
6,000 Living Centers of America, Inc.<F115> 222
2,000 Medisense, Inc.<F115> 90
7,400 Multicare Companies, Inc.<F115> 210
1,800 Orthodontic Centers of America, Inc.<F115> 71
2,900 Pacificare Health Systems, Inc.<F115> 243
13,100 Quorum Health Group, Inc.<F115> 333
12,200 Renal Treatment Centers, Inc.<F115> 354
3,800 Rotech Medical Corporation<F115> 158
3,600 Rural/Metro Corporation<F115> 107
15,600 United Healthcare Corporation 913
96,700 Vencor, Inc.<F115> 3,264
------
14,692
------
Hospital Supplies & Services - 0.4%
11,300 Boston Scientific Corporation<F115> 487
1,000 Gulf South Medical Supply, Inc.<F115> 41
2,600 Omnicare, Inc. 156
------
684
------
Housing - 1.0%
46,222 Clayton Homes, Inc. 855
5,200 Oakwood Homes Corp. 232
30,400 Toll Brothers, Inc.<F115> 494
------
1,581
------
Insurance - 3.5%
11,650 AFLAC, Inc. 361
2,400 Chartwell Re Corporation<F115> 52
11,100 Equitable of Iowa Companies 391
14,100 Arthur J. Gallagher & Company 458
17,200 MBIA, Inc. 1,228
15,600 MGIC Investment Corporation 846
6,300 Penncorp Financial Group, Inc. 193
25,800 Protective Life Corporation 897
6,300 ReliaStar Financial Corporation 275
9,200 Vesta Insurance Group, Inc. 296
10,500 Western National Corp. 190
9,000 Zurich Reinsurance Centre Holdings, Inc. 271
------
5,458
------
Investment Companies - 0.4%
13,700 United Assets Management Corporation 640
------
Lodging - 1.4%
8,400 Felcor Suite Hotels, Inc. 245
36,700 La Quinta Inns, Inc. 1,073
27,400 Promus Hotel Corporation<F115> 778
------
2,096
------
Machinery - Industrial - 0.9%
23,700 Thermo Electron Corporation<F115> 1,460
------
Office Products - 0.8%
45,225 Staples, Inc.<F115> 859
6,500 Viking Office Products, Inc.<F115> 386
------
1,245
------
Oil & Gas - Domestic - 1.3%
16,000 Enron Corporation 644
17,000 NGC Corporation 255
13,300 Sonat Offshore Drilling Company 730
6,580 Tejas Gas Corporation<F115> 329
------
1,958
------
Oil & Gas Services - 1.5%
4,000 BJ Services Company<F115> 153
13,600 Input/Output, Inc.<F115> 473
8,300 Petroleum Geo-Services - ADR A/S<F115> 262
32,700 Tidewater, Inc. 1,390
------
2,278
------
Pollution Control - 0.1%
3,000 Republic Industries, Inc.<F115> 98
2,100 Sanifill, Inc.<F115> 91
------
189
------
Production - 1.3%
51,800 Tyco International, Ltd. 2,001
------
Restaurants - 0.5%
12,400 Apple South, Inc. 322
1,500 IHOP Corporation<F115> 43
4,600 Landry's Seafood Restaurants Incorporated 108
6,300 Lone Star Steakhouse & Saloon<F115> 261
------
734
------
Retail - 4.6%
16,400 AutoZone, Inc.<F115> 599
11,300 CompUSA, Inc.<F115> 391
27,400 Consolidated Stores Corporation<F115> 986
5,600 Discount Auto Parts, Inc.<F115> 164
41,256 Dollar General Corporation 1,088
5,300 Fastenal Company 203
400 Garden Ridge Corporation<F115> 22
80,200 General Nutrition Companies, Inc.<F115> 1,564
6,900 Home Depot, Inc. 327
41,400 Kohl's Corporation<F115> 1,423
7,100 Micro Warehouse, Inc.<F115> 305
700 MSC Industrial Direct Co., Inc. - Class A<F115> 26
7,000 Musicland Stores Corporation<F115> 29
------
7,127
------
Semiconductors - 2.8%
12,700 Altera Corporation<F115> 670
27,500 Atmel Corporation 1,100
15,000 Dallas Semiconductor Corporation 292
14,400 Lattice Semiconductor Corporation<F115> 472
4,200 Linear Technology Corporation 144
20,000 Maxim Integrated Products, Inc.<F115> 685
8,000 Microchip Technology, Inc.<F115> 204
3,500 SDL, Inc.<F115> 143
15,800 Xilinx, Inc.<F115> 583
------
4,293
------
Shoes - 0.0%
2,200 Wolverine World Wide, Inc. 68
------
Telecommunications - 2.6%
17,100 ADC Telecommunications<F115> 718
6,300 Aspect Telecommunications Corporation 362
20,600 Century Telephone Enterprises 675
4,400 Comverse Technology<F115> 103
5,600 EchoStar Communications Corporation - Class A<F115> 188
17,700 Frontier Corporation 560
3,100 Glenayre Technologies, Inc.<F115> 144
25,500 Worldcom, Inc.<F115> 1,198
------
3,948
------
Textiles & Apparel - 1.2%
18,600 Jones Apparel Group, Inc.<F115> 955
4,800 The Men's Wearhouse, Inc.<F115> 178
6,000 Nike, Inc. - Class B 525
1,000 Oakley Incorporated<F115> 83
900 Henry Schein, Inc.<F115> 32
------
1,773
------
Transportation - 0.2%
3,900 Arnold Industries, Inc. 63
5,484 Fritz Companies, Inc. 202
------
265
Travel & Recreation - 2.3%
46,900 Carnival Corporation - Class A 1,360
64,100 CUC International, Inc.<F115> 2,107
------
3,467
------
Total Common Stocks (Cost $66,751) 96,459
------
Principal
Amount
(in thousands)
- --------------
LONG-TERM INVESTMENTS - 29.6%
Asset-Backed Securities - 6.4%
Credit Card Receivables - 6.4%
$1,750 Bank One Credit Card Master Trust 1995-B,
Class A, 6.30%, 10/15/02 1,731
1,700 Discover Card Master Trust I, Series 1993-2,
Class A, 5.40%, 11/16/01 1,663
1,150 First Chicago Master Trust I, Series 1994-L,
Class A, 7.15%, 4/15/01 1,171
350 Private Label Credit Card Master Trust II,
Series 1994-2, Class A, 7.80%, 9/20/03 361
500 Household Affinity Credit Card Master Trust I,
Series 1993-2, Class A, 5.60%, 5/15/02 483
1,800 Sears Credit Account Master Trust, Series 1994-1,
Class A, 7.00%, 1/15/04 1,830
1,000 Capital One Master Trust, Series 1993-1, Class A,
5.20%, 2/15/02 975
1,650 Standard Credit Card Master Trust, Series 1993-3,
Class A, 5.50%, 2/07/00 1,613
------
9,827
------
Corporate Bonds (Domestic) - 10.7%
300 Atlantic Richfield Co. Debentures,
8.50%, 4/01/12 325
350 BankAmerica Corporation Subordinated Notes,
7.75%, 7/15/02 362
250 Barclays North America Capital Corporation
Debentures, 9.75%, 5/15/21 280
250 Chase Manhattan Corporation Debentures,
10.00%, 6/15/99 273
250 Chase Manhattan Corporation Medium Term Notes,
8.65%, 2/13/99 263
750 Chemical Banking Corporation Subordinated
Capital Notes, 9.75%, 6/15/99 814
1,050 Chrysler Financial Corporation Debentures,
13.25%, 10/15/99 1,257
250 Federal Express Corporation Debentures,
9.625%, 10/15/19 276
450 Ford Motor Credit Co. Notes,
5.625%, 12/15/98 440
300 Georgia Pacific Corporation Debentures,
9.50%, 12/01/11 341
1,500 Goldman Sachs Group Notes,
6.25%, 2/01/03 1,412
Heller Financial, Inc. Notes:
750 9.375%, 3/15/98 788
350 7.875%, 11/01/99 362
1,000 Household Finance Corporation Limited
Senior Notes, 7.125%, 4/30/99 1,012
500 Household Finance Corporation Senior
Subordinated Notes, 9.625%, 7/15/00 547
800 International Lease Finance Corporation
Notes, 5.75%, 12/15/99 774
350 International Paper Co. Debentures, 9.70%, 3/15/00 383
Lehman Brothers Holdings, Inc. Notes:
550 8.375%, 2/15/99 572
300 8.875%, 2/15/00 317
700 Lehman Brothers, Inc. Senior Subordinated Notes,
10.00%, 5/15/99 761
1,000 Merrill Lynch & Co., Inc. Senior Notes,
7.75%, 3/01/99 1,030
200 Deseret Generation & Transmission Coop
Debentures, 9.375%, 1/02/11 212
300 NCNB Corporation Subordinated Notes,
10.20%, 7/15/15 370
400 Oneok, Inc. Debentures,
9.70%, 12/01/19 450
400 Rochester Telephone Debentures,
9.00%, 8/15/21 426
350 Salomon, Inc. Senior Notes,
7.75%, 5/15/00 354
550 The Charles Schwab Corporation Medium Term
Notes, 5.90%, 10/01/99 533
600 Security Pacific Corporation Subordinated
Notes, 9.75%, 5/15/99 646
700 Smith Barney Holdings, Inc. Notes,
6.875%, 6/15/05 677
300 Tennessee Gas Pipeline Co. Debentures,
6.00%, 12/15/11 252
------
16,509
------
International/Yankee (U.S. $ Denominated) - 1.1%
500 Hydro-Quebec Debentures,
9.75%, 1/15/18 554
250 Italy (Republic of) Debentures,
6.875%, 9/27/23 219
350 Norsk Hydro A/S Debentures,
9.00%, 4/15/12 390
250 Quebec (Province of) Debentures,
11.00%, 6/15/15 292
150 Sweden (Kindom of) Debentures,
11.125%, 6/01/15 205
------
1,660
------
U.S. Government Agency Issues - 0.2%
350 Federal Home Loan Mortgage Corporation Real
Estate Mortgage Investment Conduit Pass-Thru
Certificates, Series 1169, Class D,
7.00%, 5/15/21 348
------
U.S. Treasury Obligations - 11.2%
U.S. Treasury Bonds:
1,600 10.75%, 2/15/03 1,959
550 11.875%, 11/15/03 719
200 10.75%, 8/15/05 255
11,375 9.25%, 2/15/16 14,009
250 U.S. Treasury Notes,
6.75%, 5/31/99 253
------
17,195
------
Total Long-Term Investments (Cost $45,493) 45,539
------
Number
of Shares
(in thousands)
SHORT-TERM INVESTMENTS - 7.2%
Investment Companies - 7.2%
3,977 Financial Square Prime Obligation Fund 3,977
7,014 Short-Term Investments Co. Liquid
Assets Portfolio 7,014
------
Total Short-Term Investments (Cost $10,991) 10,991
------
Total Investments - 99.5% (Cost $123,235) 152,989
-------
Other Assets, less Liabilities - 0.5% 820
------
TOTAL NET ASSETS - 100.0% $153,809
========
<F115>Non-income producing
See notes to the financial statements.
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market Value
of Shares (in thousands)
- --------- -------------
COMMON STOCKS - 89.1%
Aerospace & Aircraft - 1.0%
44,000 Rockwell International Corporation $ 2,574
Banking - 4.7%
78,000 Bank of New York 3,783
48,000 Northern Trust Corporation 2,700
154,000 Norwest Corporation 5,563
-------
12,046
-------
Business Machines & Software - 3.8%
143,700 Diebold, Inc. 5,532
29,000 Xerox Corporation 4,248
-------
9,780
-------
Business Services - 2.3%
101,225 H & R Block, Inc. 3,556
28,100 Flightsafety International 1,556
14,600 General Motors Corporation - Class E 823
-------
5,935
-------
Chemicals - 4.8%
40,100 Betz Laboratories, Inc. 1,789
52,200 Ecolab, Inc. 1,697
16,600 Loctite Corporation 838
80,000 Praxair, Inc. 3,090
68,300 Sherwin-Williams Company 3,193
33,300 Valspar Corporation 1,603
-------
12,210
-------
Communications & Media - 1.8%
100,300 Interpublic Group of Companies, Inc. 4,689
-------
Consumer Products - 5.0%
88,400 Avery Dennison Corporation 5,039
60,000 Duracell International, Inc. 2,715
177,500 Newell Company 5,059
-------
12,813
-------
Consumer Services - 2.6%
127,069 Service Corporation International 6,751
-------
Containers - 0.9%
69,300 Bemis Company, Inc. 2,244
-------
Cosmetics & Soap - 3.5%
42,400 Gillette Company 2,290
34,700 Estee Lauder Companies - Class A 1,271
63,000 Procter & Gamble Company 5,323
-------
8,884
-------
Distributon - 2.3%
100,425 Alco Standard Corporation 5,812
-------
Drugs - 8.1%
73,000 Allergan, Inc. 2,582
36,400 Johnson & Johnson 3,367
96,700 McKesson Corporation 4,605
99,200 Pfizer, Inc. 6,832
20,300 Pharmacia & Upjohn, Inc. 777
45,900 Smithkline Beecham - PLC ADR 2,479
-------
20,642
-------
Electric - 1.6%
111,850 Nipsco Industries, Inc. 4,013
-------
Electrical Equipment - 5.4%
54,400 AMP, Inc. 2,434
184,200 Belden, Inc. 5,480
37,900 Emerson Electric Company 3,169
34,100 General Electric Company 2,643
-------
13,726
-------
Electronics - 1.0%
43,050 Motorola, Inc. 2,637
-------
Environmental Services - 1.0%
244,000 Laidlaw, Inc. - Class B 2,562
-------
Financial Services - 3.4%
126,000 Equifax 3,087
185,100 Federal National Mortgage Association 5,669
-------
8,756
-------
Food, Beverages & Tobacco - 3.2%
21,500 McCormick and Co. 478
114,600 Nabisco Holdings Corporation - Class A 3,510
66,525 PepsiCo, Inc. 4,224
-------
8,212
-------
Insurance - 4.2%
45,500 MBIA, Inc. 3,248
82,000 ReliaStar Financial Corporation 3,577
215,100 Western National Corp. 3,899
-------
10,724
-------
Investment Companies - 1.0%
56,000 United Assets Management Corporation 2,618
-------
Natural Gas - 1.0%
64,000 Enron Corporation 2,576
-------
Oil - Domestic - 1.4%
87,600 Phillips Petroleum Company 3,635
-------
Oil - International - 1.7%
37,425 Mobil Corporation 4,304
-------
Paper & Forest Products - 0.9%
33,000 Kimberly-Clark Corporation 2,396
-------
Printing & Publishing - 1.5%
84,000 McGraw-Hill, Inc. 3,706
-------
Production - 4.5%
57,700 Dover Corporation 2,971
27,100 Harsco Corporation 1,867
171,000 Tyco International, Ltd. 6,605
-------
11,443
-------
Railroads - 1.0%
85,200 Illinois Central Corporation - Class A 2,556
-------
Real Estate - 2.7%
67,000 Bay Apartments Communities, Inc. 1,683
160,116 Security Capital Industrial 2,762
92,000 Sun Communities, Inc. 2,404
-------
6,849
-------
Retail - 4.5%
96,100 Albertson's, Inc. 3,700
171,550 Hannaford Brothers Company 4,804
24,500 Intimate Brands, Inc. 518
51,200 May Department Stores Company 2,611
-------
11,633
-------
Telecommunications - 6.2%
39,000 AT & T Corporation 2,389
20,400 Cincinnati Bell, Inc. 1,005
140,500 Frontier Corporation 4,443
70,100 GTE Corporation 3,040
144,000 Lucent Technologies, Inc. 5,058
-------
15,935
-------
Textiles & Apparel - 1.0%
99,700 Warnaco Group - Class A 2,617
-------
Travel & Recreation - 1.1%
45,000 Walt Disney Company 2,790
-------
Total Common Stock (Cost $171,206) 228,068
-------
PREFERRED STOCK - 2.0%
Financial Services - 2.0%
82,400 American Express, 6.25%, 12/05/96 (exchangeable
for common stock of First Data Corp) 5,140
-------
Utilities - Gas - 0.0%
500 Tejas Gas Corporation 24
-------
Total Preferred Stock (Cost $4,027) 5,164
-------
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- ---------------
LONG-TERM INVESTMENTS - 2.6%
Corporate Convertible Bonds - 2.6%
$ 87 Browning-Ferris Industries, Inc. (Aces)
Subordinated Convertible Debentures,
7.25%, 6/30/98 $ 2,951
1,400 Tenet Health Care Subordinated Convertible
Debentures, 6.00%, 12/01/05 (convertible to
Vencor, Inc. common stock) 1,505
800 Thermo Electron Corporation Subordinated
Convertible Debentures, 4.625%, 8/01/97 2,300
-------
Total Long-Term Investments (Cost $5,376) 6,756
-------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS - 6.2%
Investment Companies - 4.2%
2,297 Financial Square Prime Obligation Fund 2,297
8,526 Short-Term Investments Co. Liquid Assets Portfolio 8,526
-------
10,823
-------
Principal
Amount
(in thousands)
- --------------
Variable Rate Demand Notes - 2.0%
$5,000 Warner-Lambert Co. 5,000
-------
Total Short-Term Investments (Cost $15,823) 15,823
-------
Total Investments - 99.9% (Cost $196,432) 255,811
-------
Other Assets, less Liabilities - 0.1% 267
-------
TOTAL NET ASSETS - 100.0% $256,078
========
See notes to the financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market Value
of Shares (in thousands)
- --------- --------------
COMMON STOCKS - 94.6%
Aerospace & Aircraft - 2.4%
12,300 Allied Signal, Inc. $ 715
15,300 Boeing Company 1,257
2,600 General Dynamics Corporation 164
8,734 Lockheed Martin Corporation 704
8,100 Loral Corporation 116
4,900 McDonnell Douglas Corporation 473
2,400 Northrop Grumman Corporation 148
10,600 Raytheon Company 537
10,200 Rockwell International Corporation 597
3,700 Textron, Inc. 317
5,300 United Technologies Corporation 586
-------
5,614
-------
Air Transportation - 0.4%
3,600 AMR Corporation<F115> 321
2,200 Delta Air Lines, Inc. 177
2,800 Federal Express Corporation<F115> 226
7,000 Southwest Airlines Company 208
-------
932
-------
Appliances - 0.3%
1,400 Armstrong World Industries, Inc. 80
4,200 Black & Decker Corporation 169
4,000 Maytag Corporation 86
1,400 Snap-On Tools, Inc. 67
3,700 Whirlpool Corporation 223
-------
625
-------
Autos & Trucks - 1.7%
16,775 Chrysler Corporation 1,053
4,800 Dana Corporation 159
3,400 Eaton Corporation 206
2,000 Echlin, Inc. 69
48,600 Ford Motor Company 1,743
5,825 Genuine Parts Company 258
5,600 ITT Industries, Inc. 154
2,120 PACCAR, Inc. 105
3,100 TRW, Inc. 291
-------
4,038
-------
Banking - 6.3%
19,845 Banc One Corporation 690
4,700 Bank of Boston Corporation 227
8,700 Bank of New York 422
16,312 BankAmerica Corporation 1,236
3,500 Bankers Trust New York Corporation 243
3,900 Barnett Banks, Inc. 247
6,900 Boatmen's Bancshares, Inc. 267
19,910 Chase Manhattan Corporation 1,371
22,000 Citicorp 1,733
4,800 Comerica, Inc. 209
5,700 CoreStates Financial Corporation 222
4,600 Fifth Third Bancorp 254
6,800 First Bank System, Inc. 410
14,585 First Chicago Corporation 602
13,080 First Union Corporation 804
11,571 Fleet Financial Group, Inc. 497
6,200 Mellon Bank Corporation 333
8,500 J.P. Morgan & Company, Inc. 715
13,205 NationsBank Corporation 1,053
15,300 Norwest Corporation 553
16,200 PNC Bank Corporation 490
2,200 Republic New York Corporation 131
4,800 Sun Trust Banks, Inc. 338
5,700 US Bancorp 185
7,100 Wachovia Corporation 312
4,433 Wells Fargo & Company 1,076
-------
14,620
-------
Bio-Technology - 0.3%
11,800 Amgen, Inc.<F115> 679
1,800 Millipore Corporation 75
-------
754
-------
Building & Housing - 0.4%
10,600 Corning, Inc. 368
3,800 Fluor Corporaiton 251
6,600 Masco Corporation 180
2,900 Owens-Corning Fiberglass Corporation<F115> 117
2,200 The Stanley Works 138
-------
1,054
-------
Building Materials - 0.1%
1,700 Johnson Controls, Inc. 122
-------
Business Machines & Software - 3.0%
2,700 Amdahl Corporation<F115> 34
4,700 Apple Computer, Inc. 115
12,600 COMPAQ Computer Corporation<F115> 588
6,750 Digital Equipment Corporation<F115> 403
5,800 Honeywell, Inc. 305
25,400 International Business Machines Corporation 2,731
29,175 Oracle Systems Corporation<F115> 985
6,900 Pitney-Bowes, Inc. 336
8,100 Sun Microsystems, Inc.<F115> 439
3,900 Tandem Computers, Inc.<F115> 50
5,000 Unisys Corporation<F115> 30
4,950 Xerox Corporation 725
-------
6,741
-------
Business Services - 3.0%
1,600 Autodesk, Inc. 65
12,900 Automatic Data Processing, Inc. 502
5,700 H & R Block, Inc. 200
3,200 Ceridian Corporation<F115> 153
25,400 Cisco Systems, Inc.<F115> 1,318
11,250 Computer Associates International, Inc. 826
2,600 Computer Sciences Corporation<F115> 192
3,400 Deluxe Corporation 119
4,600 Dial Corporation 129
8,021 Dun & Bradstreet Corporation 488
10,100 First Data Corporation 768
33,600 General Motors Corporation 1,823
3,600 Moore Corporation Limited 66
2,600 National Service Industries 96
5,500 Service Corporation International 292
-------
7,037
-------
Chemicals - 3.1%
5,400 Air Products and Chemicals, Inc. 308
11,500 Dow Chemical Company 1,022
24,700 Dupont (E.I.) De Nemours & Company 1,985
2,200 Ecolab, Inc. 72
4,500 W.R. Grace & Company 349
3,100 Great Lakes Chemical Corporation 212
4,500 Hercules, Inc. 272
5,300 Monsanto Company 803
6,900 Morton International, Inc. 244
2,500 Nalco Chemical Company 76
8,900 PPG Industries, Inc. 451
6,900 Praxair, Inc. 267
2,800 Rohm & Haas Company 186
6,600 Rubbermaid, Inc. 186
4,200 Sherwin-Williams Company 196
2,000 Sigma-Aldrich Corporation 108
6,450 Union Carbide Corporation 294
4,600 The Williams Companies, Inc. 235
-------
7,266
-------
Communications & Media - 1.4%
2,900 Andrew Corporation<F115> 139
9,700 Comcast Corporation - Class A 170
4,700 Dow Jones & Company, Inc. 176
6,600 Gannett Company, Inc. 451
3,400 Harcourt General, Inc. 150
3,700 Interpublic Group of Companies, Inc. 173
1,900 Knight-Ridder, Inc. 138
4,400 New York Times Company - Class A 143
30,700 Tele-Communications, Inc. - Class A<F115> 587
17,700 Time Warner, Inc. 723
4,623 Times Mirror Company - Class A 197
2,700 Tribune Company 188
-------
3,235
-------
Computers - 0.2%
10,200 EMC Corporation<F115> $ 209
7,000 Silicon Graphics, Inc. 207
-------
416
-------
Conglomerates - 0.3%
5,100 ITT Corporation 310
8,124 Tenneco, Inc. 446
-------
756
-------
Consumer Durables - 0.7%
3,637 Eastman Chemical Company 244
15,250 Eastman Kodak Company 1,167
2,128 Polaroid Corporation 96
-------
1,507
-------
Consumer Products - 0.2%
2,200 Avery Dennison Corporation 125
7,600 Newell Company 217
-------
342
-------
Containers - 0.2%
1,200 Ball Corporation 37
2,100 Bemis Company, Inc. 68
5,800 Crown Cork & Seal Company, Inc.<F115> 273
3,242 Stone Container Corporation 55
-------
433
-------
Cosmetics & Soap - 2.1%
3,200 Avon Products, Inc. 284
2,200 Clorox Company 182
6,300 Colgate-Palmolive Company 483
20,044 Gillette Company 1,082
4,800 International Flavors & Fragrances, Inc. 236
30,500 Procter & Gamble Company 2,577
-------
4,844
-------
Distributon - 0.1%
5,658 Alco Standard Corporation 327
-------
Diversified - 0.4%
7,200 Unilever N.V. 983
-------
Drugs - 7.8%
35,300 Abbott Laboratories 1,434
2,800 Allergan, Inc. 99
3,900 Alza Corporation - Class A<F115> 111
14,100 American Home Products Corporation 1,487
1,700 Bard (C.R.), Inc. 62
12,100 Baxter International, Inc. 535
3,100 Becton, Dickinson & Company 250
22,660 Bristol-Meyers Squibb Company 1,864
7,300 Humana, Inc.<F115> 180
29,900 Johnson & Johnson 2,766
24,500 Eli Lilly & Company 1,445
10,300 Medtronic, Inc. 547
55,000 Merck & Company, Inc. 3,327
28,500 Pfizer, Inc. 1,963
22,655 Pharmacia & Upjohn, Inc. 867
16,100 Schering-Plough 924
2,400 St. Jude Medical, Inc.<F115> 88
9,300 Tenet Healthcare Corporation 191
-------
18,140
-------
Electric - 1.0%
6,532 CINenergy Corporation 189
11,100 Consolidated Edison Company Of New York, Inc. 326
9,700 Duke Power Company 456
20,700 Edison International 331
5,600 General Public Utilities Corporation 178
13,600 PacifiCorp 272
10,300 Texas Utilities Company 415
4,300 Union Electric Company 166
-------
2,333
-------
Electrical Equipment - 3.2%
9,400 AMP, Inc. 420
10,200 Emerson Electric Company 853
74,500 General Electric Company 5,774
5,700 General Instrument Corporation<F115> 187
2,200 Grainger (W.W.), Inc. 152
2,600 Scientific-Atlanta, Inc. 48
-------
7,434
-------
Electronics - 3.6%
1,700 General Signal Corporation 65
2,100 Harris Corporation 130
22,800 Hewlett-Packard Company 2,414
36,900 Intel Corporation 2,500
26,500 Motorola, Inc. 1,623
6,500 National Semiconductor Corporation<F115> 102
11,700 Northern Telecom Ltd. 603
2,100 Perkin-Elmer Corporation 115
1,100 Tektronix, Inc. 44
1,900 Teledyne, Inc. 70
8,800 Texas Intruments, Inc. 497
1,300 Thomas & Betts Corporation 51
2,300 Western Atlas, Inc.<F115> 138
-------
8,352
-------
Energy - 2.4%
8,200 American Electric Power Company 333
7,150 Baltimore Gas & Electric Company 189
6,700 Carolina Power & Light Company 241
8,900 Central & South West Corporation 242
5,225 Coastal Corporaiton 207
4,100 Consolidated Natural Gas Company 192
8,200 Dominion Resources, Inc. 316
6,300 DTE Energy Company 195
10,000 Entergy Corporation 265
8,000 FPL Group, Inc. 345
11,600 Houston Industries, Inc. 248
4,100 Niagara Mohawk Power Corporation 31
1,400 NICOR, Inc. 39
3,100 Northern States Power Company 145
6,500 Ohio Edison Company 136
4,600 Pacific Enterprises, Inc. 118
19,900 Pacific Gas & Electric Company 453
7,108 Panenergy Corporation 232
10,700 Peco Energy Company 266
10,700 Public Service Enterprises Group, Inc. 280
4,200 Sonat, Inc. 183
30,200 Southern Company 664
10,400 Unicom Corporation 286
-------
5,606
-------
Energy - Raw Materials - 0.6%
6,600 Baker Hughes, Inc. 209
8,900 Dresser Industries, Inc. 284
5,100 Halliburton Company 293
1,700 Louisiana Land & Exploration Company 92
2,300 McDermott International, Inc. 48
14,900 Occidental Petroleum Corporation 384
-------
1,310
-------
Entertainment & Leisure - 1.4%
4,500 Brunswick Corporation 99
4,750 Hasbro, Inc. 174
900 King World Productions, Inc.<F115> 39
13,687 Mattel, Inc. 356
31,100 McDonald's Corporation 1,489
3,200 Premark International, Inc. 164
8,821 Price/Costco, Inc.<F115> 168
16,185 Viacom, Inc. - Class B<F115> 664
5,550 Wendy's International, Inc. 106
-------
3,259
-------
Environmental Services - 0.0%
11,000 Laidlaw, Inc. - Class B 116
-------
Finance - 1.5%
21,400 American Express Company 1,038
2,400 Beneficial Corporation 133
5,100 Great Western Financial Corporation 117
5,000 H.F. Ahmanson & Company 119
4,300 Household International, Inc. 297
7,900 Merrill Lynch & Company, Inc. 477
6,300 National City Corporation<F115> 232
4,500 Salomon, Inc. 183
13,839 The Travelers, Inc. 851
-------
3,447
-------
Financial Services - 1.2%
7,473 Dean Witter Discover and Company 407
49,000 Federal National Mortgage Association 1,500
6,600 Green Tree Financial Corporation 223
9,900 MBNA Corporation 281
7,100 Morgan Stanley Group, Inc. 357
-------
2,768
-------
Food, Beverages & Tobacco - 7.4%
8,100 American Brands, Inc. 337
22,811 Archer-Daniels-Midland Company 431
11,200 Campbell Soup Company 700
56,000 Coca-Cola Company 4,564
10,975 ConAgra, Inc. 424
6,600 CPC International, Inc. 456
5,900 Dardeen Restaurants, Inc. 81
436 Earthgrains Company 14
6,900 General Mills, Inc. 383
17,500 Heinz (H.J.) Company 593
3,700 Hershey Foods Corporation 281
9,600 Kellogg Company 685
5,200 Loews Corporation 396
35,400 PepsiCo, Inc. 2,248
37,100 Philip Morris Companies, Inc. 3,344
3,600 Pioneer Hi-Bred International, Inc. 201
5,600 Quaker Oats Company 192
4,500 Ralston-Ralston Purina Group 263
21,600 Sara Lee Corporation 670
8,200 Sysco Corporation 263
8,600 UST, Inc. 275
5,100 Wrigley (Wm) Jr. Company 268
-------
17,069
-------
Gold & Precious Metals - 0.7%
16,500 Barrick Gold Corporation 505
3,500 Cyprus Amax Minerals Company 95
5,700 Echo Bay Mines, Ltd. 75
9,600 Freeport McMoRan Copper & Gold, Inc. 315
6,100 Homestake Mining Company 123
11,361 Placer Dome, Inc. 315
5,152 Santa Fe Pacific Gold Corporation 77
-------
1,505
-------
Health Care Services & Supplies - 1.0%
1,800 Bausch & Lomb, Inc. 72
2,700 Beverly Enterprises<F115> 33
20,052 Columbia/HCA Healthcare Corporation 1,065
2,200 Manor Care, Inc. 88
8,200 United Healthcare Corporation 480
6,100 Warner-Lambert Company 681
-------
2,419
-------
Hospital Supplies & Services - 0.2%
3,300 Biomet, Inc.<F115> 49
7,700 Boston Scientific Corporation<F115> 332
2,900 US Surgical Corporation 107
-------
488
-------
Household Products - 0.1%
9,400 Federated Department Stores<F115> 314
-------
Insurance - 3.5%
5,300 Aetna Life and Casualty Company 378
1,300 Alexander & Alexander Services, Inc. 25
20,473 Allstate Corporation 796
9,500 American General Corporation 334
21,255 American International Group, Inc. 1,942
4,700 Aon Corporation 252
3,800 Chubb Corporation 360
3,400 CIGNA Corporation 385
3,600 General Re Corporation 514
5,700 ITT Hartford Group 279
3,250 Jefferson-Pilot Corporation 171
11,402 KeyCorp 440
4,500 Lincoln National Corporation 217
3,000 Marsh & McLennan Companies, Inc. 282
4,900 Providian Corporation 226
5,300 SAFECO Corporation 175
4,300 St Paul Companies, Inc. 228
3,250 Torchmark Corporation 140
3,200 Transamerica Corporation 243
3,200 UNUM Corporation 190
7,100 US Healthcare, Inc. 370
5,200 USF&G Corporation 83
-------
8,030
-------
Liquor - 0.6%
10,900 Anheuser-Busch Companies, Inc. $ 732
3,400 Brown-Foreman Corporation - Class B 134
17,300 Seagram Company Ltd. 586
-------
1,452
-------
Machinery - Agriculture & Automotive - 0.1%
3,700 Case Equipment 187
1,500 Varity Corporation<F115> 64
-------
251
-------
Machinery - Industrial - 0.0%
1,600 Harnischfeger Industries, Inc. 65
-------
Metals & Minerals - 0.4%
5,600 Bethlehem Steel Corporation<F115> 76
1,300 Inland Steel Industries, Inc. 32
3,600 Nucor Corporation 203
13,566 USX Corporation-Marathon Group, Inc. 298
3,293 USX Corporation-US Steel Group, Inc. 109
5,125 Worthington Industries, Inc. 104
-------
822
-------
Miscellaneous - 0.9%
7,700 Applied Materials, Inc.<F115> 308
2,900 Mallinckrodt Group, Inc. 114
18,700 Minnesota Mining & Manufacturing Company 1,230
6,900 PP&L Resources, Inc. 156
7,500 3 Com Corporation<F115> 346
-------
2,154
-------
Natural Gas - 0.2%
11,600 Enron Corporation 467
-------
Non-Ferrous Metals - 0.8%
10,050 Alcan Aluminum Ltd. 321
7,700 Aluminum Company of America 480
1,200 ASARCO, Inc. 40
6,300 Englehard Corporation 158
5,600 Inco, Ltd. 188
4,321 Newmont Mining Corporation 250
3,300 Phelps Dodge Corporation 243
2,700 Reynolds Metals Company 145
-------
1,825
-------
Office Equipment - 0.1%
16,700 Novell, Inc. 242
-------
Oil - Domestic - 1.9%
4,400 Amerada Hess Corporation 249
22,700 Amoco Corporation 1,657
2,800 Ashland, Inc. 115
7,100 Atlantic Richfield Company 836
5,700 Burlington Resources, Inc. 212
2,700 Columbia Gas System, Inc.<F115> 131
2,200 Kerr-McGee Corporation 141
4,900 Oryx Energy Company<F115> 79
1,700 Pennzoil Company 75
11,800 Phillips Petroleum Company 490
3,800 Sun Company, Inc. 118
11,800 Unocal Corporation 379
-------
4,482
-------
Oil - International - 5.6%
29,400 Chevron Corporation 1,705
55,400 Exxon Corporation 4,709
17,500 Mobil Corporation 2,013
23,800 Royal Dutch Petroleum Company 3,409
12,000 Texaco, Inc. 1,026
-------
12,862
-------
Oil & Gas Services - 0.4%
10,800 Schlumberger, Ltd. 953
-------
Paper & Forest Products - 1.5%
2,500 Boise Cascade Corporation 116
4,300 Champion International Corporation 208
4,000 Georgia-Pacific Corporation 311
13,100 International Paper Company 522
2,900 James River Corporation of Virginia 78
12,556 Kimberly-Clark Corporation 912
4,972 Louisiana Pacific Corporation 125
2,200 Mead Corporation 122
700 Potlatch Corporation 30
2,250 Temple-Inland, Inc. 109
3,050 Union Camp Corporation 166
4,225 Westvaco Corporation 131
9,550 Weyerhaeuser Company 473
2,900 Willamette Industries 178
-------
3,481
-------
Pollution Control - 0.5%
9,500 Browning-Ferris Industries, Inc. 306
22,300 WMX Technologies, Inc. 775
-------
1,081
-------
Printing & Publishing - 0.2%
5,000 McGraw-Hill, Inc. 221
7,000 R.R. Donnelley & Sons Company 252
-------
473
-------
Production - 1.5%
1,200 Briggs & Stratton Corporation 55
8,600 Caterpillar, Inc. 551
1,400 Cincinnati Milacron, Inc. 37
5,300 Cooper Industries, Inc. 225
12,300 Deere & Company 478
5,300 Dover Corporation 273
1,400 FMC Corporation<F115> 97
1,600 Foster Wheeler Corporation 74
5,200 Illinois Tool Works, Inc. 350
4,700 Ingersoll-Rand Company 182
6,366 Pall Corporation 178
3,250 Parker-Hannifin Corporation 137
2,450 Raychem Corporation 191
1,300 Timken Company 52
7,100 Tyco International, Ltd. 274
19,200 Westinghouse Electric Corporation 362
-------
3,516
-------
Railroads - 1.1%
6,281 Burlington Northern Santa Fe 549
3,600 Conrail, Inc. 251
9,620 CSX Corporation 493
5,900 Norfolk Southern Corporation 496
8,900 Union Pacific Corporation 606
5,300 Whitman Corporation 134
-------
2,529
-------
Retail - 4.3%
11,700 Albertson's, Inc. 450
2,600 American Greetings Corporation 72
6,500 American Stores Company 217
4,700 Circuit City Stores, Inc. 149
3,400 Dayton Hudson Corporation 325
5,500 Dillard Department Stores, Inc. - Class A 221
13,000 Gap, Inc. 392
2,500 Giant Food, Inc. 80
21,300 Home Depot, Inc. 1,009
19,800 Kmart Corporation 200
5,800 Kroger Corporation<F115> 239
8,811 The Limited, Inc. 183
7,800 Lowe's Companies, Inc. 253
11,376 May Department Stores Company 580
1,600 Mercantile Stores Company, Inc. 100
3,600 Nordstrom, Inc. 183
9,800 J.C. Penney Company, Inc. 485
2,000 Pep Boys-Manny, Moe & Jack 67
4,300 Rite Aid Corporation 127
17,700 Sears Roebuck and Company 883
3,500 Supervalu, Inc. 112
3,500 Tandy Corporation 182
2,500 TJX Companies, Inc. 74
11,925 Toys "R" Us, Inc.<F115> 332
11,200 Walgreen Company 357
103,100 Wal-Mart Stores, Inc. 2,462
6,500 Winn-Dixie Stores, Inc. 214
6,600 Woolworth Corporation 126
-------
10,074
-------
Savings & Loan - 0.4%
8,300 Federal Home Loan Mortgage Corporation 692
2,500 Golden West Financial Corporation 132
-------
824
-------
Semiconductors - 0.3%
5,800 Advanced Micro Devices, Inc.<F115> 109
5,700 LSI Logic Corp<F115> 205
8,900 Micron Technology Incorporated 324
-------
638
-------
Software - 1.4%
8,600 Bay Networks<F115> 271
26,500 Microsoft Corporation<F115> 3,001
-------
3,272
-------
Telecommunications - 8.0%
22,000 Airtouch Communications, Inc. 688
7,600 Alltell Corporation 250
25,000 Ameritech Corporation 1,459
70,956 AT & T Corporation 4,346
19,800 Bell Atlantic Corporation 1,287
44,900 BellSouth Corp 1,796
3,500 Cabletron Systems<F115> 264
5,800 DSC Communications Corporation<F115> 183
44,000 GTE Corporation 1,909
29,400 MCI Communications Corporation 865
19,500 NYNEX Corporation 958
19,100 Pacific Telesis Group 654
27,200 SBC Communications, Inc. 1,360
15,800 Sprint Corporation 666
3,700 Tellabs, Inc.<F115> 204
4,866 360 Communications Co.<F115> 114
21,053 US West, Inc. 689
20,353 US West Media Group, Inc.<F115> <F116> 397
8,500 Worldcom, Inc.<F115> 400
-------
18,489
-------
Textiles & Apparel - 0.6%
4,100 Fruit of the Loom, Inc.<F115> 108
3,600 Liz Claiborne, Inc. 131
4,700 Melville Corporation 183
6,500 Nike, Inc. - Class B 569
3,800 Reebok International Ltd. 110
2,000 Russell Corporation 52
2,777 VF Corporation 158
-------
1,311
-------
Tire & Rubber - 0.3%
4,800 Cooper Tire & Rubber Company 118
2,600 Goodrich (B.F.) Company 103
6,762 Goodyear Tire & Rubber Company 352
-------
573
-------
Transportation Equipment - 0.0%
1,700 Cummins Engine Company, Inc. 80
-------
Travel & Recreation - 1.2%
9,250 CUC International, Inc.<F115> 304
30,500 Walt Disney Company 1,891
4,950 Harrahs Entertainment, Inc.<F115> 171
2,100 Hilton Hotels Corporation 221
5,800 Marriott International, Inc. 283
-------
2,870
-------
Trucking - 0.1%
2,000 Caliber System, Inc. 80
3,450 Ryder System, Inc. 100
-------
180
-------
Total Common Stock (Cost $153,869) 219,202
-------
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
SHORT-TERM INVESTMENTS - 6.8%
U.S. Treasuries - 0.2%
$ 600 U.S. Treasury Bill, 5.00%, 8/01/96 $ 592
-------
Total U.S. Treasuries (Cost $592) 592
-------
Variable Rate Demand Notes - 6.6%
5,604 Eli Lilly & Company 5,604
3,672 Sara Lee Corporation 3,672
6,052 Warner-Lambert Co. 6,051
-------
Total Variable Rate Demand Notes (Cost $15,328) 15,327
-------
Total Short-Term Investments (Cost $15,920) 15,919
-------
Total Investments - 101.4% (Cost $169,789) 235,122
-------
Liabilities, less Other Assets - (1.4)% (3,352)
-------
TOTAL NET ASSETS - 100.0% $231,770
========
<F115> Non-income producing
<F116> When-issued security
See notes to the financial statements.
MIDCORE GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market Value
of Shares (in thousands)
- --------- -------------
COMMON STOCKS - 93.9%
Business Services - 9.9%
35,500 H & R Block, Inc. $ 1,247
102,000 Ceridian Corporation<F117> 4,870
66,814 First Data Corporation 5,078
56,900 General Motors Corporation - Class E 3,208
89,200 Sungard Data Systems, Inc.<F117> 2,966
-------
17,369
-------
Communications & Media - 6.7%
19,000 Andrew Corporation<F117> 912
42,000 Infinity Broadcasting Corporation<F117> 1,218
34,600 Interpublic Group of Companies, Inc. 1,618
153,300 PanAmSat Corporation<F117> 5,097
76,000 Paxson Communications Corporation<F117> 1,131
27,600 Reuters Holding, PLC ADR 1,866
-------
11,842
-------
Consumer Products - 0.9%
53,000 Newell Company 1,510
-------
Distribution - 2.9%
89,000 Alco Standard Corporation 5,151
-------
Drugs - 3.5%
74,200 Elan Corporation, PLC ADR<F117> 4,907
26,500 Teva Pharmaceutical Industries, Ltd. ADR 1,189
-------
6,096
-------
Electrical Equipment - 3.2%
123,000 AVX Corporation 2,921
18,200 Kemet Corporation<F117> 602
70,493 Molex, Inc. - Class A 2,163
-------
5,686
-------
Entertainment & Leisure - 6.6%
199,500 GTECH Holdings Corporation<F117> 5,661
76,000 Mirage Resorts, Inc.<F117> 3,980
49,735 Viacom, Inc. - Class B<F117> 2,039
-------
11,680
-------
Financial Services - 9.8%
132,000 Federal National Mortgage Association 4,043
110,200 First USA, Inc. 6,199
30,000 Green Tree Financial Corporation 1,013
209,850 MBNA Corporation 5,954
-------
17,209
-------
Health Care Services & Supplies - 13.8%
100,464 Columbia/HCA Healthcare Corporation 5,337
132,400 Foundation Health Corporation<F117> 5,180
64,700 Health Care & Retirement Corporation<F117> 2,386
63,500 Lincare Holdings, Inc.<F117> 2,465
49,000 United Healthcare Corporation 2,866
179,000 Vencor, Inc.<F117> 6,041
-------
24,275
-------
Hospital Supplies & Services - 0.8%
34,000 Boston Scientific Corporation<F117> 1,466
-------
Insurance - 3.6%
36,125 AFLAC, Inc. 1,120
50,800 MBIA, Inc. 3,626
30,000 MGIC Investment Corporation 1,627
-------
6,373
-------
Investment Companies - 1.1%
41,000 United Assets Management Corporation 1,917
-------
Lodging - 2.9%
98,000 La Quinta Inns, Inc. 2,867
78,000 Promus Hotel Corporation<F117> 2,213
-------
5,080
-------
Machinery - Industrial - 3.2%
71,400 Thermo Electron Corporation<F117> 4,400
25,400 York International Corporation 1,219
-------
5,619
-------
Natural Gas - 1.0%
46,000 Enron Corporation 1,851
-------
Office Products - 1.4%
128,325 Staples, Inc.<F117> 2,438
-------
Oil & Gas - Domestic - 1.1%
34,200 Sonat Offshore Drilling Company 1,877
-------
Oil & Gas Services - 2.3%
96,200 Tidewater, Inc. 4,089
-------
Production - 3.4%
156,000 Tyco International, Ltd. 6,025
-------
Retail - 4.3%
47,900 AutoZone, Inc.<F117> 1,748
148,000 General Nutrition Companies, Inc.<F117> 2,886
18,000 Home Depot, Inc. 853
60,000 Kohl's Corporation<F117> 2,063
-------
7,550
-------
Software - 1.0%
9,000 Microsoft Corporation<F117> 1,019
16,000 Reynolds & Reynolds - Class A 740
-------
1,759
Telecommunications - 3.2%
12,000 EchoStar Communications Corporation -
Class A<F117> 402
58,200 Frontier Corporation 1,841
75,000 WorldCom, Inc.<F117> 3,525
-------
5,768
-------
Textiles & Apparel - 1.8%
25,100 Cintas Corporation 1,349
20,000 Nike, Inc. - Class B 1,750
-------
3,099
-------
Travel & Recreation - 5.5%
141,400 Carnival Corporation - Class A 4,101
168,650 CUC International, Inc.<F117> 5,544
-------
9,645
-------
Total Common Stock (Cost $110,773) 165,374
-------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS - 6.9%
Investment Companies - 6.9%
3,746 Financial Square Prime Obligation Fund 3,746
8,360 Short-Term Investments Co. Liquid
Assets Portfolio 8,360
-------
Total Short-Term Investments (Cost $12,106) 12,106
-------
Total Investments - 100.8% (Cost $122,879) 177,480
-------
Liabilities, less Other Assets - (0.8)% (1,349)
-------
TOTAL NET ASSETS - 100.0% $176,131
========
<F117> Non-income producing
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market Value
of Shares (in thousands)
- --------- -------------
COMMON STOCKS - 92.1%
Air Transportation - 0.3%
47,000 Atlantic SE Airlines, Inc. $ 1,175
19,400 Valujet, Inc.<F118> 400
-------
1,575
-------
Auto Parts - 0.4%
20,500 APS Holding Corporation<F118> 374
65,700 Copart, Inc.<F118> 1,790
-------
2,164
Bio-Technology - 0.2%
209,300 Perseptive Biosystems, Inc.<F118> 1,491
-------
Business Machines & Software - 2.5%
40,500 Axciom Corporation<F118> 1,114
81,200 In Focus Systems, Inc.<F118> 4,101
62,600 Mylex Corporation<F118> 1,526
83,600 National Instruments Corporation<F118> 2,048
61,700 Network General Corporation<F118> 2,722
90,500 Synopsys, Inc.<F118> 3,733
-------
15,244
Business Services - 3.4%
4,950 Corestaff Incorporated 192
107,200 Danka Business Systems, PLC ADR 5,146
30,450 FIserv, Inc.<F118> 929
114,800 Interim Services, Inc.<F118> 4,979
128,200 Medaphis Corporation<F118> 5,913
103,500 National Data Corporation 3,649
-------
20,808
-------
Chemicals - 1.5%
433,000 Airgas, Inc.<F118> 9,309
-------
Communications & Media - 0.3%
51,800 Evergreen Media Corporation - Class A<F118> 2,033
-------
Conglomerates - 0.3%
69,400 ITI Technologies, Inc.<F118> 1,917
-------
Consumer Products - 0.2%
23,700 USA Detergents, Inc.<F118> 972
-------
Consumer Services - 0.4%
47,400 Stewart Enterprises, Inc. - Class A 2,168
-------
Containers - 0.9%
162,100 Sealed Air Corporation<F118> 5,734
-------
Distribution - 0.3%
80,400 Peak Technologies Group<F118> 1,950
-------
Drugs - 1.8%
20,100 Biovail Corporation International<F118> 568
37,600 Forest Laboratories, Inc. - Class A<F118> 1,734
74,700 Ivax Corporation 2,176
145,200 Teva Pharmaceutical Industries, Ltd. ADR 6,516
-------
10,994
-------
Electrical Equipment - 1.1%
138,200 AVX Corporation 3,282
59,300 Cable Design Technologies<F118> 1,957
58,200 PRI Automation, Inc.<F118> 1,644
-------
6,883
-------
Electronics - 1.9%
66,300 Checkpoint Systems, Inc.<F118> 1,981
260,700 KLA Instruments Corporation<F118> 7,528
97,600 Recoton Corporation<F118> 1,854
7,900 Thermoquest Corporation<F118> 130
-------
11,493
-------
Entertainment & Leisure - 3.5%
265,800 Hollywood Entertainment Corporation 4,386
190,800 Mirage Resorts, Inc.<F118> 9,993
99,200 Movie Gallery, Inc.<F118> 3,026
74,025 Regal Cinemas, Inc.<F118> 3,016
41,800 Station Casinos, Inc.<F118> 1,175
-------
21,596
Finance Companies - 1.0%
98,100 Advanta Corporation - Class B 4,917
31,100 ContiFinancial Corporation<F118> 991
-------
5,908
-------
Financial Services - 8.0%
204,200 AMBAC, Inc. 9,929
34,200 Amresco, Inc.<F118> 586
6,800 First USA Paymentech, Inc.<F118> 296
323,900 Green Tree Financial Corporation 10,932
118,000 Olympic Financial Ltd.<F118> 2,625
261,436 Quick and Reilly Group, Inc. 7,345
702,600 The Charles Schwab Corporation 17,214
-------
48,927
-------
Health Care Services & Supplies - 15.8%
131,400 American Medical Response, Inc.<F118> 4,862
36,900 Community Health Systems, Inc.<F118> 1,219
32,600 Compdent Corporation<F118> 1,443
77,100 Genesis Health Ventures, Inc.<F118> 2,284
482,675 Health Management Associates, Inc. - Class A 15,446
375,300 Healthsource, Inc.<F118> 12,807
194,900 Healthsouth Corporation<F118> 7,236
163,800 Lincare Holdings, Inc.<F118> 6,357
90,000 Living Centers of America, Inc.<F118> 3,330
28,800 Medisense, Inc.<F118> 1,296
133,500 Multicare Companies, Inc.<F118> 3,788
31,600 Orthodontic Centers of America, Inc.<F118> 1,248
23,600 Pacificare Health Systems, Inc.<F118> 3,221
240,200 Quorum Health Group, Inc.<F118> 6,095
190,700 Renal Treatment Centers<F118> 5,530
59,700 Rotech Medical Corporation<F118> 2,478
60,900 Rural/Metro Corporation<F118> 1,804
488,600 Vencor, Inc.<F118> 16,490
-------
96,934
-------
Hospital Supplies & Services - 0.9%
17,600 Gulf South Medical Supply, Inc.<F118> 713
81,700 Omnicare, Inc. 4,902
-------
5,615
-------
Housing - 3.9%
620,693 Clayton Homes, Inc. 11,483
76,600 Oakwood Homes Corp. 3,418
106,775 Southern Energy Homes, Inc.<F118> 1,882
429,900 Toll Brothers, Inc.<F118> 6,986
-------
23,769
-------
Insurance - 7.1%
24,100 Chartwell Re Corporation<F118> 526
149,600 Equitable Iowa Companies 5,273
208,500 Arthur J. Gallagher & Company 6,669
36,050 MGIC Investment Corporation 1,956
87,600 Penncorp Financial Group, Inc. 2,683
359,800 Protective Life Corporation 12,503
94,500 ReliaStar Financial Corporation 4,122
131,600 Vesta Insurance Group, Inc. 4,228
125,500 Western National Corporation 2,275
120,800 Zurich Reinsurance Centre Holdings, Inc. 3,639
-------
43,874
-------
Lodging - 0.6%
125,800 Felcor Suite Hotels, Inc. 3,664
-------
Office Products - 0.9%
98,500 Viking Office Products, Inc.<F118> 5,848
-------
Oil & Gas - Domestic - 1.2%
245,300 NGC Corporation 3,680
79,700 Tejas Gas Corporation<F118> 3,985
-------
7,665
-------
Oil & Gas - Services - 1.9%
51,300 BJ Services Company<F118> 1,969
199,400 Input/Output, Inc.<F118> 6,318
114,500 Petroleum Geo-Services, A/S ADR<F118> 3,621
-------
11,908
-------
Pollution Control - 0.5%
40,400 Republic Industries, Inc.<F118> 1,323
42,700 Sanifill, Inc.<F118> 1,852
-------
3,175
-------
Restaurants - 1.7%
169,550 Apple South, Inc. 4,408
11,300 IHOP Corporation<F118> 322
62,700 Landry's Seafood Restaurants Incorporated 1,473
107,400 Lone Star Steakhouse & Saloon<F118> 4,444
-------
10,647
-------
Retail - 9.8%
188,000 CompUSA, Inc.<F118> 6,509
373,100 Consolidated Stores Corporation<F118> 13,432
87,100 Discount Auto Parts, Inc.<F118> 2,559
515,596 Dollar General Corporation 14,211
77,500 Fastenal Company 2,964
6,600 Garden Ridge Corporation<F118> 366
334,500 General Nutrition Companies, Inc.<F118> 6,523
238,200 Kohl's Corporation<F118> 8,188
107,200 Micro Warehouse, Inc.<F118> 4,610
15,600 MSC Industrial Direct Co., Inc. - Class A<F118> 567
104,500 Musicland Stores Corporation<F118> 431
-------
60,360
-------
Semiconductors - 10.3%
185,500 Altera Corporation<F118> 9,785
403,000 Atmel Corporation<F118> 16,120
257,400 Dallas Semiconductor Corporation 5,019
203,500 Lattice Semiconductor Corporation<F118> 6,665
60,000 Linear Technology Corporation 2,063
284,500 Maxim Integrated Products<F118> 9,744
105,700 Microchip Technology, Inc.<F118> 3,076
50,600 SDL, Inc.<F118> 2,062
241,600 Xilinx, Inc.<F118> 8,909
-------
63,443
-------
Shoes - 0.1%
20,500 Wolverine World Wide, Inc. 633
-------
Software - 1.0%
70,300 Ciber, Inc.<F118> 2,794
54,000 McAfee Associates, Inc.<F118> 3,308
-------
6,102
-------
Telecommunications - 3.2%
232,100 ADC Telecommunications<F118> 9,748
103,800 Aspect Telecommunications Corporation 5,968
87,400 Comverse Technology<F118> 2,043
44,900 Glenayre Technologies, Inc.<F118> 2,088
-------
19,847
-------
Textiles & Apparel - 2.8%
254,400 Jones Apparel Group, Inc.<F118> 13,070
68,900 The Men's Wearhouse, Inc.<F118> 2,549
8,700 Oakley Incorporated<F118> 1,026
13,900 Henry Schein, Inc.<F118> 500
-------
17,145
-------
Transportation - 0.7%
48,000 Arnold Industries, Inc. 780
88,728 Fritz Companies, Inc. 3,261
-------
4,041
Utilities - Telephone - 1.7%
325,500 Century Telephone Enterprises 10,660
-------
Total Common Stock (Cost $403,933) 566,497
-------
Number Market
of Shares Value
(in thousands) (in thousands)
- -------------- -------------
SHORT-TERM INVESTMENTS - 7.3%
Investment Companies - 7.3%
16,107 Financial Square Prime Obligation Fund $ 16,107
28,448 Short-Term Investments Co. Liquid
Assets Portfolio 28,448
-------
Total Short-Term Investments (Cost $44,555) 44,555
-------
Total Investments - 99.4% (Cost $448,488) 611,052
-------
Other Assets, less Liabilities - 0.6% 3,828
-------
TOTAL NET ASSETS - 100.0% $614,880
========
<F118> Non-income producing
See notes to the financial statements.
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Number Market
of Shares Industry Value
- --------- -------- ------
COMMON AND PREFERRED STOCKS - 98.4%
Australia - 2.6%
1,400 Aberfoyle Non-ferrous Metals $ 4,095
10,900 Amcor Limited Forest Products 78,335
4,823 Ampolex Ltd.<F119> Gas Exploration 16,496
4,200 Ashton Mining Ltd. Non-ferrous Metals 7,529
11,744 Aust National Industries Conglomerates 10,712
19,600 Boral Limited Construction Materials 51,165
3,900 Brambles Inds Ltd. Business Services 53,511
9,426 Burns Philp & Co. Retail Trade 19,344
2,700 Caltex Australia Petroleum Services 11,783
8,662 Coca-Cola Amatil Ltd. Food & Beverage 91,197
18,693 Coles Myer Limited Retail Trade 67,611
5,700 CRA Limited Non-ferrous Metals 92,505
16,704 CSR Limited Conglomerates 60,286
4,386 Email Limited Household Appliances 12,312
4,654 FAI Insurances<F119> Insurance 2,269
34,400 Fosters Brewing Group Limited Food & Beverage 63,022
11,675 General Prop Trust Units Real Estate 20,196
17,100 Gold Mines Of Kalg Gold 19,899
433 Goldfields Limited<F119> Gold 1,141
19,767 Goodman Fielder Ltd. Food & Beverage 19,584
6,338 Hardie (James) Inds Construction Materials 13,954
5,200 ICI Australia Chemical 48,042
4,210 Lend Lease Corporation Limited Real Estate 64,219
5,338 MIM Holdings Miscellaneous 420
26,694 Mim Holdings Limited Non-ferrous Metals 39,460
3,818 Newcrest Mining<F119> Gold 18,403
11,552 North Ltd. Non-ferrous Metals 34,789
2,125 OPSM Protector Ltd. Drugs & Healthcare 3,826
18,291 Pacific Dunlop Ltd. Conglomerates 44,584
15,600 Pioneer International Ltd. Construction Materials 47,470
11,236 QCT Resources Miscellaneous 14,842
3,789 Renison Goldfields
Consolidated Ltd. Gold 20,050
1,800 Rothmans Holdings Tobacco 8,747
9,290 Santos Ltd. Petroleum Services 33,163
6,597 Schroders Property Fund Mutual Fund 11,360
3,335 Smith (Howard) Conglomerates 19,405
1,100 Sons of Gwalia Ltd Gold 7,827
9,363 Southcorp Holdings Ltd. Food & Beverage 25,473
4,786 Stockland Trust Group Real Estate 10,988
9,500 TNT<F119> Transportation 12,624
18,353 Westfield Trust Real Estate 31,418
---------
1,214,056
---------
Austria - 1.7%
100 Austrian Airlines<F119> Air Travel 17,286
300 BBAG Oesterr Brau Food & Beverage 15,571
1,465 Bk Austria Ag Banks 115,188
400 Bohler Uddeholm Miscellaneous 32,588
560 Creditanstalt Bank Preferred Bank 31,194
1,020 Creditanstalt Bank Bank 69,203
300 EA-Generali AG Insurance 97,320
650 Flughafen Wien AG Business Services 45,486
100 Lenzing AG Chemicals 6,896
400 Mayr Melnhof Karto Miscellaneous 18,315
1,100 Oester Elektrizitats Electic Utilities 77,588
957 OMV AG<F119> Miscellaneous 94,910
300 Radex Heraklith Miscellaneous 9,093
500 Va Technologie AG Industrial Machinery 66,317
300 Wienerberger Baust Construction Materials 58,253
300 Z Laenderbank Bank
Austria AG Preferred Banks 12,596
---------
767,804
---------
Belgium - 1.7%
200 Barco Nv Electronics 31,794
40 Bekaert SA Industrial Machinery 30,874
75 CBR Cimenteries Construction Materials 29,272
910 Delhaize Le Lion Retail Trade 44,901
150 Electrabel Electonics 33,603
150 Electrabel Stripped Shares Electonics 405
690 Fortis Ag Insurance 85,607
260 Generale De Banque Banks 91,575
5 Generale De Banque VVPR Banks 8
375 Gevaert Chemicals 23,679
102 Glaverbel Groupe Containers & Glass 11,328
370 GPE Bruxelles LAM Conglomerates 48,899
230 Kredietbank Banks 65,683
25 Kredietbank VVPR Banks 7,060
25 Royale Belge BBPR Insurance 40
230 Royale Belge Insurance 44,883
145 Solvay Chemicals 85,463
50 Tractebel Intl VVPR Conglomerates 20,228
200 Tractebel Intl Conglomerates 81,231
450 Union Miniere <F119> Non-ferrous Metals 34,698
---------
771,231
---------
Denmark - 1.1%
500 Carlsberg A Food & Beverage 27,484
370 Carlsberg B Food & Beverage 20,025
3 D/S 1912 B Conglomerates 66,216
2 D/S Svendborg B Conglomerates 63,256
785 Danisco Food & Beverage 38,238
90 Danske Luftfartsel DDL <F119> Air Travel 7,383
750 Den Danske Bank Banks 48,837
135 FLS Industries B Industrial Machinery 12,444
65 GN Store Nord Telecommunications 5,508
450 ISS International Service
System Series B Conglomerates 12,710
135 Korn-Og Foderstof Food & Beverage 5,822
30 Lauritzen (J) Holding B <F119> Conglomerates 3,546
85 NKT Holding Electrical Equipment 4,069
530 Novo Nordisk As B Drugs & Healthcare 68,754
240 OK Ostasiatiske Kompagni <F119> Conglomerates 5,033
155 Radio Meter As B Drugs & Healthcare 11,614
35 Royal Copenhagen Apparel & Textiles 3,001
90 Sophus Berendsen A Conglomerates 10,960
255 Sophus Berendsen B Conglomerates 31,225
70 Superfos A/S Chemicals 6,500
755 Unidanmark A Banks 33,584
---------
486,209
---------
Finland - 0.6%
400 Amer Group Conglomerates 7,419
300 Cultor Oy Series 1 Household Products 12,675
300 Instrumentarium Series A Drugs & Healthcare 8,038
1,500 Kesko Retail 17,003
100 Kone Corp B Industrial Machinery 11,129
1,400 Kymmene Corp Forest Products 37,567
12,120 Merita Ltd.<F119> Banks 25,978
200 Metra Ab A Conglomerates 8,244
200 Metra Ab B Conglomerates 8,244
2,100 Outokumpu Oy A Non-ferrous Metals 36,572
400 Pohjola A Insurance 6,430
300 Pohjola B Insurance 4,730
2,600 Repola Forest Products 50,156
300 Sampo (Vakuutusosak) A Insurance 15,457
100 Stockmann Ab (OY) Retail 5,359
---------
255,001
---------
France - 10.6%
1,385 Accor Leisure 192,075
1,050 Bic Conglomerates 115,601
100 Bongrain SA Food & Beverage 55,434
924 Bouygues Home Builders 93,697
1,000 Canal Plus Broadcasting 244,529
2,336 Casino Guich Perr Leisure 87,758
618 Casino Guich Perr Preferred Leisure 16,807
275 Chargeurs Conglomerates 73,035
1,051 Cie Bancaire Financial Services 115,542
100 Cie Gen Geophysique<F119> Petroleum Services 6,895
476 Club Mediterranee <F119> Leisure 45,051
210 Comptoirs Modernes Retail Trade 81,123
365 CPR Cie Par Reesco Investment Companies 31,584
1,351 Credit Foncier de France <F119> Banks 16,440
516 Credit National Banks 40,305
4,562 CSF (Thomson) Aerospace 121,247
250 DMC Dollfus-Mieg Apparel & Textiles 13,617
500 Docks de France Retail Trade 94,644
390 Ecco Ste Business Services 87,457
1,250 Eridania Beghin-Say Household Products 203,533
350 Essilor International Drugs & Healthcare 88,424
131 Eurafrance Financial Services 50,302
57 Europe 1 Registered Broadcasting 13,212
552 GTM Entrepose Home Builders 35,504
2,998 Havas Business Services 248,535
604 Imetal Non-ferrous Metals 94,380
3,350 Lagardere Groupe Publishing 89,747
1,300 Legrand Electrical Equipment 252,352
5,350 Michelin (CGDE) Class B Tires & Rubber 264,643
966 Moulinex <F119> Household Products 16,046
500 Nord-Est Steel 13,550
2,185 Pernod-Ricard Food & Beverage 142,310
880 Pinault-Printemps-Redoute Retail Trade 266,687
750 Primagaz Domestic Oil 80,254
700 Promodes Retail Trade 200,780
150 Sagem SA Electronics 93,437
300 Saint Louis Food & Beverage 87,208
50 Salomon SA Toys, Amusement &
Sporting Goods 34,767
4,950 Schneider SA (Ex Spep) Industrial Machinery 230,228
600 Sefimeg Real Estate 41,048
2,000 Seita Beverages & Tobacco 76,874
250 Sidel Industrial Machinery 59,394
574 Simco Real Estate 54,542
60 Skis Rossignol Toys, Amusement &
Sporting Goods 20,686
266 Sodexho Leisure 105,274
100 Sommer Allibert Construction Materials 28,509
600 Technip Industrial Machinery 53,878
350 Unibail SA Financial Services 34,139
306 Union Immobiliere France Real Estate 26,715
9,450 Usinor Sacilor <F119> Steel 145,931
2,700 Valeo Industrial Machinery 149,568
---------
4,835,298
---------
Germany - 14.7%
4,950 Adidas AG Toys, Amusement &
Sporting Goods 376,027
4,100 Agiv AG Construction & Mining 87,154
100 Amb Aach & Mun Bet Insurance 52,165
450 Amb Aach & Mun Bet Registered Insurance 267,019
450 Asko Deut Kaufhaus Retail Trade 267,019
450 Beiersdorf AG Series ABC Drugs & Healthcare 378,521
400 Bilfinger & Berger Home Builders 151,148
471 Brau Und Brunnen Food & Beverage 51,289
1,450 Bremer Vulkan Verbund <F119> Industrial Machinery 1,588
260 CKAG Colonia Konzern AG Insurance 178,013
50 CKAG Colonia Konzern AG
Non-Voting Preferred Insurance 27,713
9,600 Continental AG Industrial Machinery 165,571
900 Degussa AG Chemicals 323,357
150 DLW AG Construction Materials 12,422
3,100 Douglas Holding AG Retail Trade 102,484
152 Dyckerhoff AG Construction Materials 53,521
152 Dyckerhoff AG Non-Voting
Preferred Construction Materials 34,343
350 Fag Kugelfischer <F119> Industrial Machinery 50,095
480 Heidelberg Zement Construction Materials 298,905
200 Herlitz AG Business Services 23,865
200 Herlitz AG Non-Voting Preferred Business Services 21,622
741 Hochtief AG Construction Materials 280,243
112 Holsten Brauerei AG Food & Beverage 24,100
250 Iwka AG Industrial Machinery 44,340
900 Karstadt AG Retail Trade 335,563
850 Kaufhof Holding AG Retail Trade 264,378
200 Kaufhof Holding AG Non-Voting
Preferred Retail Trade 47,470
5,800 Klockner Humboldt-Deutz <F119> Industrial Machinery 32,525
930 Linde AG Industrial Machinery 567,606
250 Linotype-Hell AG<F119> Computers & Business
Equipment 18,290
3,587 Lufthansa AG Air Travel 567,895
300 Lufthansa AG Non-Voting
Preferred Air Travel 46,890
1,200 Man AG Industrial Machinery 320,266
450 Man AG Non-Voting Preferred Industrial Machinery 90,640
1,650 Preussag AG Conglomerates 443,809
750 PWA Papierwerke Waldhof <F119> Forest Products 101,232
200 Rheinmetall Berlin Aerospace 29,082
200 Salamander AG Apparel & Textiles 24,648
7,400 Schering AG Drugs & Healthcare 542,840
250 Strabag AG Home Builders 31,136
---------
6,736,794
---------
Great Britain - 7.3%
2,566 Amec Home Builders 4,582
3,800 Anglian Water Business Services 33,016
4,200 Argos Retail Trade 40,872
338 Argyll Group Retail Trade 1,684
11,300 Arjo Wiggins Appleton Forest Products 30,946
12,400 Associated British Foods Food & Beverage 74,058
2,200 Barratt Developments Home Builders 8,897
550 Barratt Developments Rights,
Expire 5/07/96 Home Builders 561
5,200 BBA Group <F119> Industrial Machinery 27,116
13,300 BET Conglomerates 44,806
4,419 BICC Electrical Equipment 23,010
10,100 Blue Circle Industries Construction Materials 56,759
2,343 Bowthorpe Electronics 15,699
7,000 BPB Industries Construction Materials 34,874
5,900 British Aerospace Aerospace 77,070
5,966 British Land Co. Real Estate 38,630
27,900 British Steel Steel 83,105
2,800 Burmah Castrol PLC Petroleum Services 44,643
2,100 Calor Group Gas & Pipeline Utilities 8,477
8,400 Caradon PLC Containers & Glass 28,992
8,000 Carlton Communications Broadcasting 55,942
3,500 Chubb Security Business Services 19,984
9,809 Coats Viyella Apparel & Textiles 28,188
1,160 Cobham PLC Aerospace 10,340
340 Costain Group <F119> Home Builders 505
5,600 Courtaulds PLC Chemicals 35,966
1,200 Courtaulds Textile Apparel & Textiles 7,518
2,430 Dawson International Apparel & Textiles 3,264
3,139 De La Rue Business Services 34,975
1,800 Delta Electrical Equipment 12,209
5,036 East Midlands Electricity Electric Utilities 47,345
5,901 Electrocomponents Electronics 35,287
4,312 English China Clays Mining 18,862
6,840 FKI Electrical Equipment 17,141
6,600 General Accident Insurance 62,593
4,800 GKN Industrial Machinery 70,768
8,100 Granada Group Leisure 100,095
3,900 Great Portland Estates Real Estate 10,622
12,075 Guardian Royal Exchange Insurance 40,860
3,568 Hammerson PLC Real Estate 20,640
9,915 Harrison & Crosfield Miscellaneous 22,095
3,100 Hepworth Construction Materials 14,025
1,517 Hyder Utilities 16,732
1,530 Hyder Cumulative Preferred Utilities 2,371
4,300 IMI Non-ferrous Metals 23,971
1,100 Independent News Newspapers 5,427
3,000 Johnson Matthey Conglomerates 27,348
15,997 Ladbroke Group Hotels & Restaurants 46,930
1,133 Laing (John) Home Builders 5,356
1,700 Laird Group Industrial Machinery 12,462
7,000 Land Securities Real Estate 68,750
13,300 Lasmo Gas Exploration 38,319
6,784 Legal & General GR Insurance 72,889
1,400 Lex Service Business Services 7,668
2,442 London Electricity Electric Utilities 30,232
10,700 Lonrho Conglomerates 31,069
12,106 Lucas Industries Industrial Machinery 38,967
4,233 Marley Home Builders 9,274
5,600 MEPC Real Estate 36,008
2,512 Mercury Asset Management Group Financial Services 33,756
1,534 Meyer International Forest Products 10,439
23,671 National Grid Grp Electric Utilities 72,640
5,200 Next Retail Trade 41,357
4,138 Northern Electric Electric Utilities 40,672
1,400 Northern Electric Preferred Electric Utilities 2,132
1,900 Ocean Group Trucking & Freight
Forwarding 12,545
600 Oxford Instruments Electronics 4,344
8,300 P & O Trucking & Freight
Forwarding 65,140
13,867 Pilkington Containers & Glass 44,323
1,900 Provident Financial Financial Services 27,371
3,600 Racal Electronics Electronics 18,637
7,168 Redland Construction Materials 45,929
6,900 Rexam Construction Materials 41,002
3,400 RMC Group Construction Materials 55,663
20,032 Rolls Royce Automobiles 71,242
9,000 Royal Insurance Holdings Insurance 49,025
8,100 Rugby Group Construction Materials 15,558
2,700 Schroders Financial Services 53,380
8,400 Scottich & Newcastle Food & Beverage 86,660
15,640 Scottish Power Electric Utilities 87,423
21,300 Sears PLC Retail Trade 32,123
6,900 Sedgwick Group Insurance 14,496
4,900 Slough Estates Real Estate 17,610
4,200 Smiths Industries Industrial Machinery 44,559
3,555 Southern Electric Electric Utilities 44,678
2,060 Southern Water Business Services 23,540
3,300 St. James' Place Capital Financial Services 5,744
6,735 T & N Industrial Machinery 18,141
11,643 Tarmac Construction Materials 22,800
5,451 Tate & Lyle Food & Beverage 39,386
4,700 Taylor Woodrow Home Builders 12,272
5,600 Thames Water Business Services 48,067
6,432 TI Group Conglomerates 52,796
1,800 Transport Development Railroads & Equipment 5,767
3,300 Unigate Food & Beverage 20,575
7,400 United Biscuits Food & Beverage 26,762
6,721 United Utilities Business Services 59,908
4,200 Vickers Industrial Machinery 16,261
8,000 Williams Holdings Construction Materials 41,417
5,167 Willis Corroon Group Insurance 11,863
2,300 Wilson (Connoly) Holdings Home Builders 6,420
4,400 Wimpey (George) Home Builders 9,508
7,600 Wolseley Construction Materials 53,430
---------
3,328,155
---------
Hong Kong - 1.0%
10,000 Applied International Holdings Electronics 944
12,800 Bank of East Asia Banks 43,022
33,000 Cathay Pacific Airways Air Travel 57,592
20,000 Chinese Estates Real Estate 18,098
7,000 Dickson Concepts International Retail Trade 8,099
8,000 Giordano International Retail Trade 7,394
15,000 Hang Lung Development Co. Real Estate 28,408
35,640 Hong Kong & China Gas Electric Utilities 58,513
2,720 Hong Kong & China Gas Warrants,
Expire 9/30/97 Electric Utilities 144
2,000 Hong Kong Aircraft Aerospace 5,068
12,000 Hong Kong & Shangai Hotel Conglomerates 20,710
49,000 Hopewell Holdings Real Estate 29,930
13,000 Hysan Development Real Estate 41,762
550 Hysan Development Warrants,
Expire 4/30/98 Real Estate -
5,500 Johnson Electric Holdings Electrical Equipment 12,443
4,000 Kumagai Gumi (HK) Home Builders 3,697
2,000 Lai Sun Garmentt International Apparel & Textiles 2,314
8,000 Miramar Hotel & Invest. Hotels & Restaurants 17,374
14,000 Oriental Press Group Publishing 6,515
7,000 Peregrine Investments <F119> Real Estate 10,814
30,000 Regal Hotels International Hotels & Restaurants 7,601
18,000 Shangri-La Asia Leisure 24,782
16,000 Shun Tak Holdings Aerospace 11,583
9,000 Stelux Holdings International Retail Trade 2,059
16,000 South China Morning Post Broadcasting 10,859
6,300 Tai Cheung Holdings Real Estate 5,579
5,000 Television Broadcasts Broadcasting 20,037
1,992 Wing Lung Bank Banks 11,331
2,500 Winsor Industrial Corp. Apparel & Textiles 2,295
---------
468,967
---------
Ireland - 0.4%
7,500 Allied Irish Banks Banks 38,996
4,000 CRH Construction Materials 35,884
2,629 Fyffes Food & Beverage 4,407
1,632 Greencore Group Food & Beverage 7,884
1,200 Independent News Newspapers 9,964
2,940 Irish Life Insurance 11,408
1,800 Kerry Group A Food & Beverage 16,483
11,740 Smurfit (Jefferson) Paper 31,614
6,700 Waterford Wedgewood Toys, Amusements &
Sporting Goods 7,539
2,373 Woodchester Investments Financial Services 6,814
---------
170,993
---------
Italy - 8.6%
8,000 Arn Mondadori Edit Broadcasting, Advertising &
Publishing 66,700
119,500 Banca Commerciale Italiana Banks 268,846
8,000 Banca Naz Agricolt,
Non-Convertible
Preferred <F119> Banks 3,073
10,000 Banca Naz Agricolt Priv <F119> Banks 3,643
17,500 Banca Naz Agricolt <F119> Banks 11,420
1,500 Banca Naz Agricoltura <F119> Agricultural Machinery 575
13,000 Banca Popolare Milano <F119> Banks 59,615
34,000 Banco Ambros Veneto Banks 102,568
13,000 Banco Ambros Veneto,
Non-Convertible Preferred Banks 20,813
12,000 Benetton Group Apparel & Textiles 143,805
7,600 Cartiere Burgo Forest Products 43,377
15,500 Cementir Construction Materials 12,195
150,000 Credito Italiano Ord Banks 191,069
2,000 Danieli Industrial Machinery 14,176
2,000 Danieli, Non-Convertible
Preferred Industrial Machinery 7,184
43,000 Edison Ord Electric Utilities 246,521
24,500 Fidis Conglomerates 67,176
41,000 IMI Instituto Mobiliare Banks 324,936
29,000 Impregilo Ord <F119> Home Builders 25,022
54,000 Ist Bc S.Paolo (To) Banks 351,518
10,200 Italcementi Construction Materials 73,960
6,000 Italcementi, Non-Convertible
Preferred Construction Materials 16,528
45,000 Italgas Gas & Pipeline Utilities 155,310
4,000 La Previdente Insurance 25,565
25,500 Magneti Marelli Industrial Machinery 38,626
3,000 Marzotto & Figli Apparel & Textiles 21,283
32,000 Mediobanca Banks 229,168
361,000 Montedison <F119> Conglomerates 218,268
41,000 Montedison, Non-Convertible
Preferred <F119> Conglomerates 23,374
1,000 Olivetti <F119> Computers & Business
Equipment 908
4,500 Olivetti, Non-Convertible Computers & Business
Preferred <F119> Equipment 2,287
239,250 Olivetti, Priv <F119> Computers & Business
Equipment 152,913
79,000 Parmalat Finanziaria Food & Beverage 86,846
101,000 Pirelli Spa Industrial Machinery 157,508
4,000 Pirelli Spa, Non-Convertible
Preferred Industrial Machinery 5,024
21,742 Ras Insurance 242,139
8,358 Ras, Non-Convertible Preferred Insurance 47,276
10,000 Rinascente Retail Trade 69,090
3,000 Rinascente, Non-Convertible
Preferred Retail Trade 9,184
2,000 Rinascente, Priv Retail Trade 5,292
8,000 Sai Ord Insurance 86,411
4,000 Sai Ord, Non-Convertible
Preferred Insurance 17,282
28,000 Saipem Petroleum 102,006
5,333 Sasib Industrial Machinery 21,065
4,000 Sasib, Non-Convertible
Preferred Industrial Machinery 7,772
15,000 Sirti Home Builders 95,007
39,000 SNIA BPD <F119> Conglomerates 43,671
2,000 SNIA BPD, Non-Convertible
Preferred <F119> Conglomerates 1,387
---------
3,919,382
---------
Japan - 35.6%
11,000 77th Bank Banks 113,408
2,200 Advantest Corp. Electronics 108,997
4,000 Aida Engineering Industrial Machinery 38,184
5,000 Alps Electric Co. <F119> Electronics 58,708
8,000 Amada Co. Industrial Machinery 93,170
3,000 Amano Corporation Pollution Control 42,671
12,000 Aoki Corp.<F119> Home Builders 50,174
2,000 Aoyama Trading Co. Conglomerates 62,813
1,500 Arabian Oil Co. International Oil 74,316
12,000 Asahi Breweries Food & Beverage 145,482
3,000 Asahi Optical Co. <F119> Food & Beverage 16,209
18,000 Ashikaga Bank Banks 121,484
5,000 Asics Corp. <F119> Apparel & Textiles 17,660
8,000 Banyu Pharmaceutical Co. Drugs & Healthcare 115,317
7,000 Brother Industries Household Appliances &
Furnishings 45,373
8,000 Casio Computer Co. Toys, Amusement & Sporting
Goods 84,769
17,000 Chichibu Onoda Cement Construction Materials 104,835
7,000 Chiyoda Corp. Industrial Machinery 84,865
7,000 Chugai Pharmaceutical Co. Drugs & Healthcare 68,159
9,000 Citizen Watch Co., Ltd. Retail 78,612
18,000 Cosmo Oil Company International Oil 117,703
3,500 Credit Saison Co. Financial Services 86,535
2,000 CSK Corporation Business Services 62,050
11,000 Daicel Chemical Ind. Chemicals 73,295
12,000 Daido Steel Company Steel 66,212
3,000 Daifuku Co. Industrial Machinery 47,253
8,000 Daiichi Pharmaceutical Company Drugs & Healthcare 134,409
8,000 Daikin Industries Industrial Machinery 88,588
5,000 Daikyo, Inc. Real Estate 37,421
8,000 Daimaru, Inc. Apparel & Textiles 63,004
22,000 Dainippon Ink Chemicals 119,498
5,000 Dainippon Screen Mfg. Co.<F119> Electronics 50,594
6,000 Daishowa Paper Mfg. Co.<F119> Paper 55,558
4,000 Daito Trust Construction Construction & Mining 59,186
4,000 Daiwa Kosho Lease Co. Real Estate 43,530
13,000 Denki Kagaku Kogyo K.K. Chemicals 50,260
8,000 Ebara Corp. Industrial Machinery 124,481
8,350 Eisai Co. Drugs & Healthcare 164,999
5,000 Ezaki Glico Co. Food & Beverage 52,026
10,000 Fujikura Industrial Machinery 77,992
14,000 Fujita Corp. Home Builders 69,896
4,000 Fujita Kanko, Inc. Leisure 87,824
18,000 Furukawa Electric Co. Electrical Equipment 108,940
3,000 Gakken Co. <F119> Broadcasting 21,622
6,000 Gunze Limited Apparel & Textiles 39,349
25,000 Hankyu Corp. Railroads & Equipment 152,499
5,000 Hankyu Department Stores Retail Trade 73,028
12,000 Haseko Corp. Home Builders 55,215
9,000 Hazama Corp. Home Builders 40,466
7,000 Higo Bank Banks 60,809
1,000 Hirose Electric Co. Electronics 61,668
10,000 Hokkaido Bank Banks 32,743
20,000 Hokuriku Bank Banks 134,600
10,000 Honshu Paper Co. Paper 72,359
3,000 House Food Corp. Food & Beverage 60,140
4,000 Hoya Corp. Drugs & Healthcare 141,282
7,000 Inax Corporation Construction Materials 76,178
6,000 Isetan Co. Retail Trade 88,779
8,000 Ishihara Sangyo Kaisha <F119> Industrial Machinery 29,631
7,000 Itoham Foods Inc. Food & Beverage 56,866
7,000 Iwatani International Electric Utilities 38,824
4,000 Jaccs Co. Financial Services 38,948
32,000 Japan Energy Corp. Miscellaneous 131,049
4,000 Japan Metal & Chemicals <F119> Chemicals 22,720
10,000 Japan Steel Works Steel 34,175
2,000 Jeol <F119> Electronics 17,374
5,000 JGC Corp. Electronics 63,959
4,000 Kaken Pharmaceutical Co. Drugs & Healthcare 36,466
8,000 Kamigumi Co. Business Services 82,478
5,500 Kandenko Co. Home Builders 75,080
14,000 Kanebo <F119> Apparel & Textiles 44,237
10,000 Kaneka Corp. Chemicals 69,973
8,000 Kansai Paint Co. Chemicals 42,766
2,000 Katokichi Co. Food & Beverage 49,831
16,000 Kawasaki Kisen Kaisha <F119> Trucking & Freight
Forwarding 58,957
14,420 Keihin Electric Express Railroads & Equipment 88,925
6,000 Kikkoman Corp. Food & Beverage 47,826
7,700 Kinden Corporation Home Builders 122,753
2,200 Kissei Pharmaceutical Co. Drugs & Healthcare 69,305
4,000 Kokuyo Co. Business Services 110,735
2,000 Komori Corporation Industrial Machinery 53,076
1,000 Konami Co. Business Services 30,261
10,000 Konica Corporation Photography 78,278
7,000 Koyo Seiko Co. Industrial Machinery 67,491
19,000 Kumagai Gumi Co. Construction Materials 81,438
7,000 Kurabo Industries Apparel & Textiles 30,605
9,000 Kuraray Co. Chemicals 103,957
6,000 Kureha Chemical Ind Co. Chemicals 36,600
4,400 Kurita Water Industries Business Services 110,467
14,000 Kyowa Hakko Kogyo Co. Drugs & Healthcare 137,655
2,000 Kyudenko Corp. Electrical Equipment 29,402
9,000 Lion Corp. Drugs & Healthcare 56,446
3,000 Maeda Road Construction Construction Materials 54,985
4,000 Makino Milling Machine <F119> Industrial Machinery 41,621
6,000 Makita Corp. Electrical Equipment 96,797
4,000 Marudai Food Co. Food & Beverage 31,884
10,000 Maruha Corp. <F119> Food & Beverage 39,139
9,000 Meiji Milk Products Co. Food & Beverage 58,680
11,000 Meiji Seika Kaisha Food & Beverage 69,410
11,000 Minebea Co. Industrial Machinery 100,912
5,000 Misawa Homes Co. Home Builders 46,060
14,000 Mitsubishi Gas Chemical Chemicals 68,961
14,000 Mitsubishi Oil Co. International Oil 125,894
9,000 Mitsubishi Paper Mills Paper 57,735
4,000 Mitsubishi Steel Mfg. <F119> Steel 23,407
6,000 Mitsubishi Warehouse Business Services 100,807
23,000 Mitsui Engineering &
Shipbuilding<F119> Industrial Machinery 73,113
20,000 Mitsui Marine & Fire Insurance 169,348
14,000 Mitsui Mining & Smelting <F119> Mining 64,150
31,000 Mitsui Osk Lines <F119> Trucking & Freight
Forwarding 112,453
4,000 Mitsui-Soko Co. Trucking & Freight
Forwarding 34,290
22,000 Mitsui Toatsu Chemicals Chemicals 97,446
15,000 Mitsukoshi Retail Trade 166,102
4,000 Mochida Pharmaceutical Drugs & Healthcare 57,277
3,000 Mori Seiki Co. Industrial Machinery 68,445
4,000 Nagase & Co. Chemicals 39,712
22,000 Nagoya Railroad Co. Railroads & Equipment 118,868
13,650 Nankai Electric Railway Railroads & Equipment 90,170
10,000 NGK Insulators Electrical Equipment 113,598
6,000 NGK Spark Plug Co. Industrial Machinery 74,459
12,600 Nichido Fire & Marine Insurance 105,847
8,000 Nichii Co. Retail 128,299
9,000 Nichirei Corp. <F119> Household Products 65,295
10,000 Nihon Cement Co. Construction Materials 71,214
9,000 Niigata Engineering<F119> Industrial Machinery 35,053
4,000 Nippon Beet Sugar Mfg. Co. Food & Beverage 22,758
3,000 Nippon Comsys Corp. Computers & Business
Equipment 38,662
3,000 Nippon Denko Co. Steel 13,689
17,000 Nippon Fire & Marine Insurance 124,147
16,000 Nippon Light Metal Co. Non-ferrous Metals 103,861
7,000 Nippon Meat Packers Food & Beverage 110,926
4,000 Nippon Sharyo Industrial Machinery 40,857
12,000 Nippon Sheet Glass Co. Containers & Glass 61,630
9,000 Nippon Shinpan Co. Financial Services 67,099
7,000 Nippon Shokubai Co. Chemicals 76,178
8,000 Nippon Suisan Kaisha <F119> Food & Beverage 35,664
8,000 Nishimatsu Construction Construction & Mining
Equipment 93,933
7,000 Nisshinbo Industries Apparel & Textiles 77,514
4,000 Nissin Food Products Co. Food & Beverage 109,589
4,000 Nitto Denko Corp. Electronics 64,532
6,000 NOF Corp. Chemicals 36,714
6,000 Noritake Co. Toys, Amusement & Sporting
Goods 62,431
16,000 NSK Industrial Machinery 129,063
13,000 NTN Corp. Industrial Machinery 95,308
21,000 Obayashi Corp. Home Builders 195,055
21,630 Odakyu Electric Railway Railroads & Equipment 154,861
4,000 Okamoto Industries Tires & Rubber 27,455
4,000 Okuma Corp. <F119> Industrial Machinery 43,912
7,000 Okumura Corp. Home Builders 66,823
9,000 Olympus Optical Co. Photography 97,084
5,000 Onward Kashiyama Co. Apparel & Textiles 84,483
9,000 Orient Corp. Financial Services 56,704
2,000 Orix Corp. Financial Services 82,669
10,000 Penta-Ocean Construction Home Builders 75,510
5,000 Pioneer Electronic Corp. Household Appliances &
Furnishings 111,689
6,000 Q.P. Corp. Conglomerates 60,713
7,000 Renown<F119> Apparel & Textiles 29,402
11,000 Sagami Railway Co. Railroads & Equipment 53,659
4,000 Sanden Corp. Electrical Equipment 29,707
7,000 Sankyo Aluminium Ind. Co. Aluminum 44,370
2,000 Sanrio Co.<F119> Retail Trade 25,774
7,000 Sanwa Shutter Corp. Construction Materials 66,021
11,000 Sapporo Breweries Food & Beverage 106,057
3,000 Sega Enterprises Toys, Amusement & Sporting
Goods 152,928
3,000 Seiko Corporation Retail Trade 25,774
4,000 Seino Transportation Co. Railroads & Equipment 70,259
7,000 Seiyu Apparel & Textiles 98,229
6,000 Settsu Corp. <F119> Paper 22,510
2,000 Shimachu Co. Retail Trade 67,777
4,000 Shimano, Inc. Leisure 81,333
10,000 Shionogi & Co. Drugs & Healthcare 92,024
12,000 Shiseido Co. Drugs & Healthcare 151,210
2,000 Shochiku Co. Leisure 23,102
3,000 Shokusan Jutaku Sogo Co. <F119> Construction Materials 12,544
29,000 Showa Denko K.K. <F119> Chemicals 95,785
3,000 Skylark Co. Hotels & Restaurants 65,582
9,000 Snow Brand Milk Food & Beverage 65,209
5,000 Sumitomo Forestry Co. Forest Products 76,846
16,000 Sumitomo Heavy Ind.<F119> Industrial Machinery 69,190
18,000 Sumitomo Marine & Fire Insurance 171,142
17,000 Sumitomo Metal Mining Co. Non-ferrous Metals 172,020
13,000 Sumitomo Osaka Cement Co. Construction Materials 68,751
3,000 Taiyo Yuden Co. Electronics 35,511
6,000 Takara Shuzo Co. Food & Beverage 68,732
4,000 Takara Standard Co. Household Products 46,203
8,000 Takashimaya Co. Retail Trade 130,590
3,000 Takuma Co. Telecommunication Services 46,108
7,000 Tanabe Seiyaku Co. Drugs & Healthcare 59,071
27,000 Teijin Chemicals 148,203
8,000 Teikoku Oil Co. International Oil 60,331
6,000 Toa Corporation Home Builders 42,041
24,000 Tobu Railway Co. Railroads & Equipment 165,873
500 Toho Co Leisure 86,869
5,000 Tokyo Broadcasting Broadcasting 83,528
6,000 Tokyo Dome Corp. Leisure 109,398
3,000 Tokyo Style Co. Apparel & Textiles 53,267
6,000 Tokyo Tatemono Co. Real Estate 37,402
8,000 Tokyotokeiba Co. Leisure 37,344
17,000 Tosoh Corp. <F119> Chemicals 79,681
11,000 Toto Construction Materials 162,761
5,000 Toyo Engineering Electronics 36,514
2,000 Toyo Exterior Co. Home Builders 56,513
4,000 Toyo Kanetsu K.K. Petroleum Services 21,918
19,000 Toyobo Co. Apparel & Textiles 77,085
9,000 Toyoda Automatic Loom Industrial Machinery 186,435
6,000 Tsubakimoto Chain Co. Industrial Machinery 42,327
2,000 Tsugami Corp. Industrial Machinery 12,028
23,000 Ube Industries <F119> Chemicals 94,630
2,000 Uni-Charm Corp. Household Products 56,513
1,000 Uniden Corp. Household Products 21,956
13,000 Unitika <F119> Chemicals 41,077
6,000 Yamaguchi Bank Banks 102,525
7,000 Yamaha Corp. Toys, Amusement & Sporting
Goods 125,626
11,000 Yamato Transport Co. Trucking & Freight
Forwarding 134,409
7,000 Yamazaki Baking Co. Food & Beverage 143,000
8,000 Yokogawa Electric Corp. Electronics 93,170
---------
16,284,539
----------
Malaysia - 0.6%
1,000 AMMB Holdings Financial Services 15,138
2,000 Amsteel Corp. Steel 1,620
1,000 Aokam Perdana Paper 2,025
1,500 Berjaya Group Leisure 1,101
1,000 Berjaya Leisure Leisure 1,019
1,000 Commerce Asset-Holding Financial Services 6,817
2,000 DCB Holdings Financial Services 7,298
1,000 Edaran Otomobil Nasional Retail 8,541
1,000 Ekran Building Construction 3,950
400 Faber Group <F119> Leisure 401
3,000 Golden Hope Plantations Food & Beverage 5,365
1,000 Guinness Anchor Food & Beverage 2,566
1,000 Highlands & Lowlands Food & Beverage 1,885
1,000 Hong Leong Properties Real Estate 1,291
1,000 Hume Industries Construction Materials 5,694
1,000 Idris Hydraulic <F119> Financial Services 1,524
1,000 IGB Corp. Real Estate 1,007
3,000 IOI Corp. Chemicals 4,499
1,000 Jaya Tiasa Holdings Forest Products 6,215
1,000 Johan Holdings Industrial Machinery 1,243
1,000 Kedah Cement Holdings Construction Materials 1,989
1,000 Kemayan Corp. Agricultural Machinery 1,893
2,500 Kuala Lumpur Kepong Food & Beverage 6,416
1,500 Land & General Forest Products 4,000
1,000 Landmarks Hotels & Restaurants 1,564
1,000 Leader Universal Holdings Electrical Equipment 2,947
125 Lion Land Berhad Real Estate 158
4,500 Magnum Corp. Leisure 7,795
1,000 Malayan Cement Construction Materials 2,486
4,000 Malayan United Industries Financial Services 4,058
3,333 Malaysia Int'l. Shipping Containers & Glass 10,692
1,000 Malaysia Mining Corp. Mining 1,965
2,000 Malaysian Airline System Air Travel 6,616
1,000 Malaysian Mosaics Real Estate 1,604
1,000 Malaysian Pacific Electronics 3,990
2,000 Malaysian Resources Corp. Mining 5,133
2,000 MBF Capital Financial Services 2,999
3,000 Metroplex Real Estate 3,007
166 Metroplex Rights, Expire
6/04/96 Real Estate -
2,000 Mulpha International Conglomerates 2,181
2,000 Multi-Purpose Holdings Conglomerates 3,481
1,000 Mycom Real Estate 1,347
1,000 Nestle Food & Beverage 8,501
1,000 New Straits Times Newspapers 5,373
2,000 Pan Malaysia Cemt Construction Materials 2,486
1,000 Perlis Plantations Mining 4,210
2,000 Perusahaan Otomobil Automobiles 9,864
1,000 Promet<F119> Industrial Machinery 1,103
2,000 Public Bank Banks 5,734
1,000 Rashid Hussain Financial Services 3,529
1,000 RJ Reynolds Food & Beverage 3,168
1,000 Rothmans Pall Mall Tobacco 10,225
1,000 Selangor Properties Real Estate 1,163
1,000 Shell Refining Co. International Oil 3,068
1,000 Sungei Way Holdings Building Construction 4,611
2,000 TA Enterprise <F119> Financial Services 3,449
1,000 Tan Chong Motor Holdings Industrial Machinery 1,612
2,000 Technology Resources
Industries <F119> Conglomerates 6,817
1,000 Time Engineering Industrial Machinery 2,927
1,000 UMW Holdings Industrial Machinery 3,288
2,252 UTD Engineers Industrial Machinery 15,442
1,500 YTL Corp. Home Builders 7,519
---------
259,609
---------
Netherlands - 2.5%
6,977 Ahold NV Retail 343,584
1,200 Getronics NV Computers & Business
Equipment 83,222
182 Hollandsche Beton Groep Home Builders 31,184
1,339 IHC Caland NV Home Builders 52,517
5,111 KLM <F119> Air Travel 171,270
5,686 Koninklijke KNP BT NV Paper 135,531
1,825 Kon Hoogovensnv Steel 68,601
1,267 Nedlloyd (Kon.) Trucking & Freight
Forwarding 27,763
918 OCE-Van der Grinten NV Computers & Business
Equipment 84,262
1,706 Pakhoed (Kon.) Petroleum Services 42,652
1,731 Stad Rotterdam Insurance 58,006
1,646 Stork NV Industrial Machinery 46,236
---------
1,144,828
---------
Norway - 0.9%
1,000 Aker A Conglomerates 18,534
200 Aker B Conglomerates 3,312
1,400 Bergesen (Dy) A Trucking & Freight
Forwarding 25,096
600 Bergesen (Dy) B, Trucking & Freight
Non-Voting Preferred Forwarding 10,300
700 Dyno Industrier Chemicals 15,260
1,200 Elkem Non-ferrous Metals 15,769
1,775 Hafslund Nycomed A Drugs & Healthcare 52,043
822 Hafslund Nycomed B Drugs & Healthcare 22,915
500 Helikopter Service Miscellaneous 5,659
1,100 Kvaerner As Agricultural Machinery 45,119
800 Leif Hoegh & Co. Trucking & Freight
Forwarding 11,546
700 Norske Skogsindust A Paper 21,375
200 Norske Skogsindust B Paper 5,712
1,200 Orkla A Food & Beverage 58,518
100 Orkla B Food & Beverage 4,557
700 Petroleum Geo-Services <F119> Energy Equipment & Services 22,438
1,300 Transocean As<F119> Miscellaneous 36,338
7,200 Uni Storebrand Ord <F119> Insurance 34,236
500 Unitor Containers & Glass 8,431
---------
417,158
---------
New Zealand - 0.4%
36,575 Brierley Investments Limited Investment Companies 34,415
23,700 Carter Holt Harvey Forest Products 56,157
1,249 Fisher &Paykel Industries Household Appliances &
Furnishings 4,100
5,025 Fletcher Challenge -
Building Shares<F119> Forest Products 11,907
10,050 Fletcher Challenge -
Paper Shares<F119> Forest Products 20,707
11,057 Fletcher Challenge -
Forest Division<F119> Forest Products 14,277
5,025 Fletcher Challenge Ltd Forest Products 10,768
7,500 Lion Nathan Limited Food & Beverage 18,698
1,300 Wilson & Horton Publishing 8,571
---------
179,600
---------
Singapore - 0.5%
2,000 Amcol Hldgs Electronics 5,718
5,400 City Developments Real Estate 47,240
1,000 Cycle & Carriage Automobiles 12,091
6,000 DBS Land Real Estate 24,324
1,000 First Capital Corp. Hotels & Restaurants 3,172
2,400 Fraser & Neave Food & Beverage 26,629
2,000 Hai Sun Hup Group Trucking & Freight Forwarding 1,465
1,000 Haw Par Bros. Int'l. Conglomerates 2,532
2,000 Hotel Properties Hotels & Restaurants 3,869
1,000 Inchcape Berhad Business Services 3,556
1,000 Jurong Shipyard Industrial Machinery 5,725
3,000 Keppel Corp. Industrial Machinery 27,098
2,000 Lum Chang Holdings Home Builders 1,977
1,200 Metro Holdings Retail Trade 4,353
2,000 Natsteel Steel 4,011
4,000 Neptune Orient Lines Nol Trucking & Freight Forwarding 4,438
1,000 Overseas Union Ent. Leisure 5,725
2,000 Parkway Holdings Real Estate 5,974
1,000 Shangri-La Hotel Hotels & Restaurants 3,542
200 Singapore Press Holdings Publishing 3,784
3,000 Straits Steamship Land Conglomerates 10,455
2,000 Straits Trading Co. Non-ferrous Metals 5,206
3,000 United Overseas Land Real Estate 6,252
8,000 UTD Industrial Corp. Conglomerates 8,137
---------
227,273
---------
Spain - 3.8%
583 Acerinox Aluminum 65,820
2,250 Aguas De Barcelona Business Services 77,285
6,750 Argentaria Corp Bc Banks 272,925
11,564 Autopistas CESA (Acesa) Business Services 120,752
8,750 BCO Central Hispano Registered Banks 183,079
800 Alba (Corp Financiera) Conglomerates 63,060
1,450 Corporacion Mapfire Insurance 72,859
2,700 Dragados Y Construction Home Builders 37,097
2,300 Ebro Agricolas Food & Beverage 26,274
1,000 ENCE (Empresa Nacl Celulosa) Forest Products 14,564
1,050 Fasa Renault Automobiles 22,258
800 Fomento Const Y Contra Home Builders 68,148
1,800 Gas Natural SDG SA Electric Utilities 326,733
1,050 Metrovacesa Real Estate 34,376
1,900 Urbis (Inmobilaria) Real Estate 7,697
350 Portland Valderrivas Construction Materials 21,708
500 Prosegur Compania Business Services 18,215
1,950 Tabacalera Food & Beverage 88,796
15,450 Union Electrica Fenosa Electric Utilities 92,309
2,400 Uralita Construction Materials 23,553
2,050 Vallehermoso SA Real Estate 37,018
1,100 Viscofan Aluminum 17,013
407 Zardoya Otis Industrial Machinery 40,262
---------
1,731,801
---------
Sweden - 1.7%
2,000 AGA Series A Chemicals 32,366
1,700 AGA Series B Chemicals 27,261
1,900 Atlas Copco Series A Industrial Machinery 35,639
900 Atlas Copco Series B Construction & Mining 17,080
400 Autoliv Industrial Machinery 21,773
1,200 Electrolux Series B Household Appliances &
Furnishings 60,377
300 Esselte Series A Electronics 5,958
800 Euroc Series A Construction Materials 22,950
800 Hennes & Mauritz Series B Retail Trade 55,081
400 Securitas Series B Business Services 22,950
8,500 Skand. Enskilda Banken
Series A Banks 63,775
1,600 Skandia Foersaekrings Insurance 36,485
2,000 Skanska Series B Home Builders 63,113
800 SKF Series A Construction & Mining 18,184
1,000 SKF Series B Industrial Machinery 23,245
1,900 Stadshypotek Ab Miscellaneous 41,369
4,200 Stora Kopparbergs Series A Forest Products 56,537
1,000 Stora Kopparbergs Series B Forest Products 13,388
3,000 Svenska Cellulosa Forest Products 56,493
3,200 Svenska Handelsbk Series A Banks 65,438
300 Svenska Handelsbk Series B Banks 5,826
1,800 Trelleborg Series B Mining 24,230
---------
769,518
---------
Switzerland - 2.1%
214 Adia Sa Business Services 46,765
65 Alusuisse-Lonza Hldg Non-ferrous Metals 52,169
130 Alusuisse-Lonza Hldg
Registered Aluminum 104,756
80 Danzas Holding Household Products 17,225
15 Fischer (Georg) Inhaber AG Industrial Machinery 17,836
15 Fischer (Georg) Inhaber AG
Registered Industrial Machinery 3,459
45 Forbo Holding Registered Construction Materials 18,764
215 Holderbk FN Glarus Financial Services 162,196
70 Interdiscount Holding <F119> Retail Trade 1,688
50 Interdiscount Holding
Warrants, Expire 11/15/96 Retail Trade 8
15 Jelmoli Holding AG Retail Trade 8,556
45 Jelmoli Holding AG Registered Retail Trade 5,061
10 Kuoni Reisen Series B Leisure 20,085
120 Merkur Holding AG Registered Retail Trade 24,681
15 Moevenpick Holdings Leisure 5,302
10 Moevenpick Holdings Registered Leisure 3,535
40 Schindler Holding AG Industrial Machinery 43,705
35 Schindler Holding AG Warrants,
Expire 12/16/96 Industrial Machinery 73
55 SGS Holding Business Services 123,725
65 Sika Finanz Inhaber AG Construction Materials 15,249
115 SMH AG Neuenburg Toys, Amusement &
Sporting Goods 76,962
470 SMH AG Neuenburg Registered Toys, Amusement &
Sporting Goods 69,856
35 Sulzer AG Industrial Machinery 22,495
70 Sulzer AG Registered Industrial Machinery 47,128
70 Swissair <F119> Air Travel 69,005
---------
960,284
---------
Total Common and Preferred Stocks 98.4%
(Cost $42,432,256) 44,928,500
----------
SHORT-TERM INVESTMENTS - 1.4%
United States - 1.4%
635,000 Financial Square Prime Obligation Fund
Investment Company 635,000
---------
Total Short-Term Investments (Cost $635,000) 635,000
---------
Total Investments - 99.8% (Cost $43,067,256) 45,563,500
----------
Other Assets, less Liabilities - 0.2% 114,757
--------
TOTAL NET ASSETS - 100.0% $45,678,257
===========
<F119> Non-income producing
See notes to the financial statements.
BALANCED FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
MIDCORE GROWTH FUND
SPECIAL GROWTH FUND
INTERNATIONAL EQUITY FUND
NOTES TO THE FINANCIAL STATEMENTS
(Unaudited)
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 Stock 500 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 - No provision for federal income taxes has been made
since the Funds have complied to date with the provisions of the Internal
Revenue Code available to regulated investment companies and intend to continue
to so comply in future years.
c)Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, administration and
certain shareowner service fees. Expenses that are not directly attributable to
a portfolio are typically allocated among the Company's portfolios in proportion
to their respective net assets, number of shareowner accounts, or net sales,
where applicable. Net investment income other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative net asset value of outstanding shares of each
class of shares at the beginning of the day (after adjusting for the current
day's capital share activity of the respective class).
d)Distributions to Shareowners - Dividends from net investment income are
declared and paid quarterly, for the Balanced, Growth and Income and Equity
Index Funds and annually for the MidCore Growth, Special Growth and
International Equity Funds. Distributions of net realized capital gains, if any,
will be declared at least annually.
e)Futures Contracts - The Equity Index Fund may utilize futures contracts to a
limited extent. The primary risks associated with the use of futures contracts
include an imperfect correlation between the change in market value of the
securities held by the Fund and the prices of futures contracts and the
possibility of an illiquid market. Futures contracts are valued based upon their
quoted daily settlement prices. Changes in initial settlement value are
accounted for as unrealized appreciation (depreciation) until the contracts are
terminated at which time realized gains and losses are recognized.
f)When-Issued Securities - The Funds may purchase securities on a when-issued
or delayed delivery basis. Although the payment and interest terms of these
securities are established at the time the purchaser enters into the agreement,
these securities may be delivered and paid for at a future date, generally
within 45 days. The Fund records purchases of when-issued securities and
reflects the values of such securities in determining net asset value in the
same manner as other portfolio securities. The Fund segregates and maintains at
all times cash, cash equivalents, or other high-quality liquid debt securities
in an amount at least equal to the amount of outstanding commitments for when-
issued securities.
g)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. Foreign currency exchange gains
and losses included in net appreciation (depreciation) on foreign currency and
net realized gains and losses on foreign currency include foreign currency gains
and losses between trade date and settlement date on investment securities
transactions, foreign currency transactions and the difference between the
amounts of interest and dividends recorded on the books of the Fund and the
amount actually received. The portion of the foreign currency gains and losses
related to fluctuation in exchange rates between the initial purchase trade date
and subsequent sale trade date of a security is included in realized gains and
losses on investment transactions.
i)Other - Investment and shareowner transactions are recorded no later than the
first business day after the trade date. The Funds determine the gain or loss
realized from the investment transactions by comparing the original cost of the
security lot sold with the net sale proceeds. Dividend income is recognized on
the ex-dividend date or as soon as information is available to the Funds, and
interest income is recognized on an accrual basis. Generally accepted accounting
principles require that permanent financial reporting and tax differences be
reclassified to capital stock.
3.CAPITAL SHARE TRANSACTIONS
On January 9, 1995, all previously existing series of shares of each Fund were
reclassified as Series A shares. Effective January 9, 1995, Institutional
shareowners exchanged their Series A shares for the Funds' Institutional series
shares. Transactions in capital shares for the Funds, in thousands, were as
follows:
<TABLE>
<CAPTION>
BALANCED GROWTH AND INCOME EQUITY INDEX
FUND FUND FUND
--------------------- --------------------- ---------------------
Amount Shares Amount Shares Amount Shares
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Six months ended April 30, 1996:
Series A shares:
Shares sold $ 4,180 157 $ 9,358 322 $ 10,098 227
Shares issued to owners in
reinvestment of dividends 680 26 2,134 78 348 8
Shares redeemed (1,986) (74) (3,206) (111) (1,909) (43)
--------- --------- --------- --------- --------- ---------
Net increase $ 2,874 109 $ 8,286 289 $ 8,537 192
========= ========= ========= ========= ========= =========
Series Institutional shares:
Shares sold $ 45,112 1,710 $ 29,204 1,009 $ 60,993 1,378
Shares issued to owners in
revinvestment of dividends 3,162 121 7,768 283 2,669 61
Shares redeemed (33,130) (1,256) (17,611) (607) (17,113) (388)
--------- --------- --------- --------- --------- ---------
Net increase $ 15,144 575 $ 19,361 685 $ 46,549 1,051
========= ========= ========= ========= ========= =========
Period from Jan. 10,
to Oct. 31, 1995:
Series A shares:
Reclassification of previous class $101,671 4,722 $159,134 7,206 $107,441 3,306
Exchange out to Series Institutional
shares (85,645) (3,978) (125,287) (5,674) (94,927) (2,921)
Shares sold 4,044 166 5,748 225 6,511 171
Shares issued to owners in
reinvestment of dividends 279 12 358 14 222 5
Shares redeemed (1,911) (79) (5,802) (235) (4,042) (107)
--------- --------- --------- --------- --------- ---------
Net increase $ 18,438 843 $ 34,151 1,536 $ 15,205 454
========= ========= ======== ========= ========= =========
Series Institutional shares:
Exchange in from Series A shares $ 85,645 3,978 $125,287 5,674 $ 94,927 2,921
Shares sold 34,956 1,469 27,970 1,112 32,025 852
Shares issued to owners in
revinvestment of dividends 1,518 62 1,572 61 1,803 47
Shares redeemed (34,962) (1,473) (24,218) (956) (17,405) (458)
--------- --------- --------- --------- --------- ---------
Net increase $ 87,157 4,036 $130,611 5,891 $111,350 3,362
========= ========= ========= ========= ======== =========
Period from Nov. 1, 1994
to Jan. 9, 1995:
Previous class:
Reclassification to
Series A shares $(101,671) (4,722) $(159,134) (7,206) $(107,441) (3,306)
Shares sold 12,996 608 5,431 241 5,050 155
Shares issued to owners in
reinvestment of dividends 528 24 4,848 218 868 27
Shares redeemed (4,138) (193) (8,009) (358) (3,100) (95)
--------- --------- --------- --------- --------- ---------
Net (decrease) $ (92,285) (4,283) $(156,864) (7,105) $(104,623) (3,219)
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
MIDCORE GROWTH SPECIAL GROWTH INTERNATIONAL
FUND FUND EQUITY FUND
------------------- ------------------ --------------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Six months ended April 30, 1996:
Series A shares:
Shares sold $ 2,940 106 $ 16,214 416 $ 1,315 66
Shares issued to owners in
reinvestment of dividends - - 9,553 257 40 2
Shares redeemed (887) (32) (9,559) (246) (155) (8)
-------- -------- -------- -------- -------- --------
Net increase $ 2,053 74 $ 16,208 427 1,200 60
========== ======== ========== ======== ========= ========
Series Institutional shares:
Shares sold $ 27,280 991 $ 83,692 2,171 $ 8,902 448
Shares issued to owners in
revinvestment of dividends - - 42,665 1,144 713 37
Shares redeemed (20,859) (758) (73,469) (1,920) (1,684) (85)
-------- -------- -------- -------- -------- --------
Net increase $ 6,421 233 $ 52,888 1,395 7,931 400
========== ======== ========== ======== ========= ========
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)
========== ======== ========== ======== ========= ========
</TABLE>
4.INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the period ended April 30, 1996, were
as follows:
<TABLE>
<CAPTION>
BALANCED GROWTH AND EQUITY MIDCORE SPECIAL INTERNATIONAL
FUND INCOME FUND INDEX FUND GROWTH FUND GROWTH FUND EQUITY FUND
-------- ------------ ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Purchases:
U.S. Government $ 5,700 - - - - -
Other 47,349 $79,714 $52,675 $41,635 $308,128 $107,475
Sales:
U.S. Government 6,212 - - - - -
Other 38,874 56,119 1,101 41,524 290,694 86,912
</TABLE>
Equity Index Fund transactions in futures contracts during the period October
31, 1995 to April 30, 1996, in thousands, were as follows:
AGGREGATE
NUMBER OF FACE VALUE OF
CONTRACTS CONTRACTS <F120>
---------- ---------------
Outstanding at October 31, 1995 29 $ 8,435
Contracts opened 199 63,292
Contracts closed (191) (59,801)
----- --------
Outstanding at April 30, 1996 37 $11,926
===== ========
<F120> 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 April 30, 1996 were as follows:
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
---------- -------------
S&P 500 Financial Futures Contract
Expiration date 6/96 <F83> 37 $188
<F121> At April 30, 1996, U.S. Treasury Bills of $592, 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 April 30, 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 $31,506 $59,892 $67,657 $55,621 $169,762 $ 4,605
(Depreciation) (1,994) (571) (2,781) (1,152) (7,362) (2,208)
-------- ------- ------- ------- -------- -------
Net unrealized
appreciation
on investments $29,512 $59,321 $64,876 $54,469 $162,400 $2,397
======= ======= ======= ======= ======== ======
At April 30, 1996, the cost of investments, in thousands, for federal income
tax purposes was $123,477, $196,490, $170,247, $123,011, $448,652 and $43,067
for the Balanced, Growth and Income, Equity Index, MidCore Growth, Special
Growth and International Equity Funds, respectively.
At October 31, 1995, the Midcore Growth Fund had accumulated net realized
capital loss carryovers, in thousands, of $295 expiring in 2001. The MidCore
Growth Fund had accumulated net realized capital loss carryovers, in thousands,
of $4,704, expiring in 2002. To the extent the MidCore Growth Fund realizes
future net capital gains, taxable distributions to its shareowners will be
offset by any unused capital loss carryover.
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 April 30, 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% <F122><F123>
Fees waived $152 $18 - $8 - $154
<F122>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.
<F123>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 six months ended
April 30, 1996, $48, $79, $66, $54, $186 and $14 of administration fees, in
thousands, were voluntarily waived for the Balanced, Growth and Income, Equity
Index, MidCore Growth, Special Growth and International Equity Funds,
respectively.
The Company has entered into Servicing Agreements with certain Service
Organizations, including FIRMCO affiliates, for the Series A class of shares.
The Service Organizations are entitled to receive fees from the Funds up to the
annual rate of 0.25% of the average daily net asset value of the Series A Shares
for certain support and/or distribution services to customers of the Service
Organizations who are beneficial owners of Fund Series A Shares. These services
may include assisting customers in processing purchase, exchange and redemption
requests; processing dividend and distribution payments from the Funds; and
providing information periodically to customers showing their positions in Fund
Series A Shares. Service Organization fees, in thousands, paid by the Balanced,
Growth and Income, Equity Index, MidCore Growth, Special Growth and
International Equity Funds to FIRMCO affiliates aggregated $30, $60, $28, $15,
$116 and $3 respectively, for the six months ended April 30, 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.
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
For Account Balances and
Investor Services
1-800-228-1024
1-414-287-3808
Portico Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
NASD Ref#X96-0520-021
Notice to Portico Equity Shareowners:
We would like to inform you of personnel changes at Firstar Investment
Research & Management Company (FIRMCO). On June 18, 1996, Bart Wear
and Joe Docter resigned their portfolio management positions to
establish a money management firm. We are fortunate FIRMCO has such
a depth of professional talent from which we can draw and have made
the following portfolio management appointments:
Portico MidCore Growth Fund:
Marian Zentmyer - lead manager
Joe Frohna and Scott Harkness - co-managers
Portico MicroCap Fund:
Mark Westman (previously a co-manager)
Portico Special Growth Fund:
Scott Harkness, Todd Krieg, and Mark Westman will continue to co-manage
Portico Balanced Fund
Marian Zentmyer - co-manager with Teresa Westman
Portico Growth and Income Fund
Marian Zentmyer and Maya Bittar will continue to co-manage
In our opinion, FIRMCO is one of the best money management firms in the
country and this is largely due to the total team effort from every employee.
You have our assurance that we will continue to provide you with only the
highest quality of service and investment results to which you have become
accustomed.
Should you have any questions, please do not hesitate to call
the Portico Funds Center at 1-800-982-8909.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO MONEY MARKET FUND
<SERIES>
<NUMBER> 1
<NAME> PORTICO MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 184,386
<INVESTMENTS-AT-VALUE> 184,386
<RECEIVABLES> 60
<ASSETS-OTHER> 14
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 184,460
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 917
<TOTAL-LIABILITIES> 917
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 183,525
<SHARES-COMMON-STOCK> 183,543
<SHARES-COMMON-PRIOR> 172,261
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 183,543
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,173
<OTHER-INCOME> 0
<EXPENSES-NET> 554
<NET-INVESTMENT-INCOME> 4,619
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 4,619
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,619
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 264,693
<NUMBER-OF-SHARES-REDEEMED> 257,744
<SHARES-REINVESTED> 4,333
<NET-CHANGE-IN-ASSETS> 11,282
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 461
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 758
<AVERAGE-NET-ASSETS> 185,506
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .02
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824615
<NAME> PORTICO U.S. GOVERNMENT MONEY MARKET FUND
<SERIES>
<NUMBER> 2
<NAME> PORTICO U.S. GOVERNMENT MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 227,761
<INVESTMENTS-AT-VALUE> 227,761
<RECEIVABLES> 708
<ASSETS-OTHER> 7
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 228,476
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 980
<TOTAL-LIABILITIES> 980
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 227,473
<SHARES-COMMON-STOCK> 227,496
<SHARES-COMMON-PRIOR> 163,068
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 227,496
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,006
<OTHER-INCOME> 0
<EXPENSES-NET> 549
<NET-INVESTMENT-INCOME> 4,457
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 4,457
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,457
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 457,919
<NUMBER-OF-SHARES-REDEEMED> 394,822
<SHARES-REINVESTED> 1,331
<NET-CHANGE-IN-ASSETS> 64,428
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 458
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 655
<AVERAGE-NET-ASSETS> 184,085
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .02
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO TAX-EXEMPT MONEY MARKET FUND
<SERIES>
<NUMBER> 3
<NAME> PORTICO TAX-EXEMPT MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 87,497
<INVESTMENTS-AT-VALUE> 87,497
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<TOTAL-ASSETS> 88,207
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<OTHER-ITEMS-LIABILITIES> 303
<TOTAL-LIABILITIES> 303
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 87,895
<SHARES-COMMON-STOCK> 87,904
<SHARES-COMMON-PRIOR> 84,084
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 87,904
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,546
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<EXPENSES-NET> 248
<NET-INVESTMENT-INCOME> 1,298
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<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 1,298
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,298
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 88,195
<NUMBER-OF-SHARES-REDEEMED> 84,894
<SHARES-REINVESTED> 519
<NET-CHANGE-IN-ASSETS> 3,820
<ACCUMULATED-NII-PRIOR> 0
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<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 207
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 322
<AVERAGE-NET-ASSETS> 83,137
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
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<PER-SHARE-DIVIDEND> .02
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<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .60
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO SHORT-TERM BOND MARKET FUND
<SERIES>
<NUMBER> 4
<NAME> PORTICO SHORT-TERM BOND MARKET FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 199,338
<INVESTMENTS-AT-VALUE> 197,346
<RECEIVABLES> 3,160
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 200,770
<PAYABLE-FOR-SECURITIES> 2,262
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 174
<TOTAL-LIABILITIES> 2,436
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 201,149
<SHARES-COMMON-STOCK> 5,404
<SHARES-COMMON-PRIOR> 4,641
<ACCUMULATED-NII-CURRENT> 158
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (983)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,992)
<NET-ASSETS> 198,334
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,430
<OTHER-INCOME> 0
<EXPENSES-NET> 484
<NET-INVESTMENT-INCOME> 4,946
<REALIZED-GAINS-CURRENT> 645
<APPREC-INCREASE-CURRENT> (2,803)
<NET-CHANGE-FROM-OPS> 2,788
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,433
<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> 1,544
<NUMBER-OF-SHARES-REDEEMED> 903
<SHARES-REINVESTED> 122
<NET-CHANGE-IN-ASSETS> 55,645
<ACCUMULATED-NII-PRIOR> 119
<ACCUMULATED-GAINS-PRIOR> (1,628)
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<OVERDIST-NET-GAINS-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 800
<AVERAGE-NET-ASSETS> 169,204
<PER-SHARE-NAV-BEGIN> 10.28
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> (0.08)
<PER-SHARE-DIVIDEND> 0.29
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.20
<EXPENSE-RATIO> 0.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO BOND IMMDEX FUND
<SERIES>
<NUMBER> 5
<NAME> PORTICO BOND IMMDEX FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 355,130
<INVESTMENTS-AT-VALUE> 356,839
<RECEIVABLES> 5,917
<ASSETS-OTHER> 137
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 362,893
<PAYABLE-FOR-SECURITIES> 532
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 214
<TOTAL-LIABILITIES> 746
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 360,367
<SHARES-COMMON-STOCK> 1,277
<SHARES-COMMON-PRIOR> 786
<ACCUMULATED-NII-CURRENT> 379
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (309)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,709
<NET-ASSETS> 362,147
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 10,966
<OTHER-INCOME> 0
<EXPENSES-NET> 750
<NET-INVESTMENT-INCOME> 10,216
<REALIZED-GAINS-CURRENT> 740
<APPREC-INCREASE-CURRENT> (11,520)
<NET-CHANGE-FROM-OPS> (564)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 789
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 563
<NUMBER-OF-SHARES-REDEEMED> 95
<SHARES-REINVESTED> 23
<NET-CHANGE-IN-ASSETS> 49,998
<ACCUMULATED-NII-PRIOR> 261
<ACCUMULATED-GAINS-PRIOR> (1,049)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 503
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 866
<AVERAGE-NET-ASSETS> 337,600
<PER-SHARE-NAV-BEGIN> 27.82
<PER-SHARE-NII> 0.79
<PER-SHARE-GAIN-APPREC> (0.79)
<PER-SHARE-DIVIDEND> 0.80
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<PER-SHARE-NAV-END> 27.02
<EXPENSE-RATIO> 0.68
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO GROWTH AND INCOME FUND
<SERIES>
<NUMBER> 6
<NAME> PORTICO GROWTH AND INCOME FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 196,432
<INVESTMENTS-AT-VALUE> 255,811
<RECEIVABLES> 805
<ASSETS-OTHER> 7
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 256,623
<PAYABLE-FOR-SECURITIES> 285
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 260
<TOTAL-LIABILITIES> 545
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 184,318
<SHARES-COMMON-STOCK> 1,825
<SHARES-COMMON-PRIOR> 1,536
<ACCUMULATED-NII-CURRENT> 259
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12,121
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 59,379
<NET-ASSETS> 256,078
<DIVIDEND-INCOME> 2,309
<INTEREST-INCOME> 700
<OTHER-INCOME> 0
<EXPENSES-NET> 1,094
<NET-INVESTMENT-INCOME> 1,915
<REALIZED-GAINS-CURRENT> 12,179
<APPREC-INCREASE-CURRENT> 19,830
<NET-CHANGE-FROM-OPS> 33,924
<EQUALIZATION> 0
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<DISTRIBUTIONS-OF-GAINS> 1,827
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<NUMBER-OF-SHARES-SOLD> 322
<NUMBER-OF-SHARES-REDEEMED> 11
<SHARES-REINVESTED> 78
<NET-CHANGE-IN-ASSETS> 50,902
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<ACCUMULATED-GAINS-PRIOR> 8,779
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,191
<AVERAGE-NET-ASSETS> 231,249
<PER-SHARE-NAV-BEGIN> 27.62
<PER-SHARE-NII> 0.21
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<PER-SHARE-DIVIDEND> 0.20
<PER-SHARE-DISTRIBUTIONS> 1.19
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<PER-SHARE-NAV-END> 30.47
<EXPENSE-RATIO> 1.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO EQUITY INDEX FUND
<SERIES>
<NUMBER> 7
<NAME> PORTICO EQUITY INDEX FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 169,789
<INVESTMENTS-AT-VALUE> 235,122
<RECEIVABLES> 826
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 235,955
<PAYABLE-FOR-SECURITIES> 3,763
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 422
<TOTAL-LIABILITIES> 4,185
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 164,906
<SHARES-COMMON-STOCK> 646
<SHARES-COMMON-PRIOR> 454
<ACCUMULATED-NII-CURRENT> 314
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,027
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 65,522
<NET-ASSETS> 231,770
<DIVIDEND-INCOME> 2,030
<INTEREST-INCOME> 291
<OTHER-INCOME> 0
<EXPENSES-NET> 430
<NET-INVESTMENT-INCOME> 1,891
<REALIZED-GAINS-CURRENT> 1,442
<APPREC-INCREASE-CURRENT> 19,792
<NET-CHANGE-FROM-OPS> 23,125
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 197
<DISTRIBUTIONS-OF-GAINS> 165
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<NUMBER-OF-SHARES-SOLD> 227
<NUMBER-OF-SHARES-REDEEMED> 43
<SHARES-REINVESTED> 8
<NET-CHANGE-IN-ASSETS> 75,001
<ACCUMULATED-NII-PRIOR> 245
<ACCUMULATED-GAINS-PRIOR> 972
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 241
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 496
<AVERAGE-NET-ASSETS> 194,171
<PER-SHARE-NAV-BEGIN> 41.07
<PER-SHARE-NII> 0.36
<PER-SHARE-GAIN-APPREC> 5.08
<PER-SHARE-DIVIDEND> 0.37
<PER-SHARE-DISTRIBUTIONS> 0.35
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 45.79
<EXPENSE-RATIO> 0.67
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO SPECIAL GROWTH FUND
<SERIES>
<NUMBER> 8
<NAME> PORTICO SPECIAL GROWTH FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 448,488
<INVESTMENTS-AT-VALUE> 611,052
<RECEIVABLES> 6,968
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<TOTAL-ASSETS> 618,027
<PAYABLE-FOR-SECURITIES> 2,599
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<OTHER-ITEMS-LIABILITIES> 548
<TOTAL-LIABILITIES> 3,147
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 417,011
<SHARES-COMMON-STOCK> 2,535
<SHARES-COMMON-PRIOR> 2,108
<ACCUMULATED-NII-CURRENT> (313)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 35,617
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 162,564
<NET-ASSETS> 614,880
<DIVIDEND-INCOME> 789
<INTEREST-INCOME> 1,414
<OTHER-INCOME> 0
<EXPENSES-NET> 2,516
<NET-INVESTMENT-INCOME> (313)
<REALIZED-GAINS-CURRENT> 36,788
<APPREC-INCREASE-CURRENT> 45,292
<NET-CHANGE-FROM-OPS> 81,767
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<DISTRIBUTIONS-OF-GAINS> 9,689
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<NUMBER-OF-SHARES-SOLD> 416
<NUMBER-OF-SHARES-REDEEMED> 246
<SHARES-REINVESTED> 257
<NET-CHANGE-IN-ASSETS> 93,383
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<ACCUMULATED-GAINS-PRIOR> 56,309
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,020
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,702
<AVERAGE-NET-ASSETS> 542,223
<PER-SHARE-NAV-BEGIN> 41.40
<PER-SHARE-NII> (0.05)
<PER-SHARE-GAIN-APPREC> 5.82
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 4.59
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 42.58
<EXPENSE-RATIO> 1.14
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO INSTITUTIONAL MONEY MARKET FUND
<SERIES>
<NUMBER> 9
<NAME> PORTICO INSTITUTIONAL MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 776,673
<INVESTMENTS-AT-VALUE> 776,673
<RECEIVABLES> 177
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<TOTAL-ASSETS> 776,852
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<OTHER-ITEMS-LIABILITIES> 3,509
<TOTAL-LIABILITIES> 3,509
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 773,266
<SHARES-COMMON-STOCK> 773,343
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 773,343
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 21,317
<OTHER-INCOME> 0
<EXPENSES-NET> 1,332
<NET-INVESTMENT-INCOME> 19,985
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<NUMBER-OF-SHARES-SOLD> 1,242,669
<NUMBER-OF-SHARES-REDEEMED> 1,189,516
<SHARES-REINVESTED> 3,624
<NET-CHANGE-IN-ASSETS> 56,777
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<GROSS-ADVISORY-FEES> 1,903
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,502
<AVERAGE-NET-ASSETS> 765,509
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.03
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<PER-SHARE-DIVIDEND> 0.03
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<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO U.S. TREASURY MONEY MARKET FUND
<SERIES>
<NUMBER> 10
<NAME> PORTICO U.S. TREASURY MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 63,910
<INVESTMENTS-AT-VALUE> 63,910
<RECEIVABLES> 498
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<TOTAL-ASSETS> 64,413
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<TOTAL-LIABILITIES> 319
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<PAID-IN-CAPITAL-COMMON> 64,088
<SHARES-COMMON-STOCK> 64,094
<SHARES-COMMON-PRIOR> 64,655
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 64,094
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,799
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<EXPENSES-NET> 203
<NET-INVESTMENT-INCOME> 1,596
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<NET-CHANGE-FROM-OPS> 1,596
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<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> 111,069
<NUMBER-OF-SHARES-REDEEMED> 111,806
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<NET-CHANGE-IN-ASSETS> (561)
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<GROSS-EXPENSE> 269
<AVERAGE-NET-ASSETS> 67,822
<PER-SHARE-NAV-BEGIN> 1.00
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000821612
<NAME> PORTICO BALANCED FUND
<SERIES>
<NUMBER> 11
<NAME> PORTICO BALANCED FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
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<PAID-IN-CAPITAL-COMMON> 120,883
<SHARES-COMMON-STOCK> 952
<SHARES-COMMON-PRIOR> 843
<ACCUMULATED-NII-CURRENT> 268
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<ACCUMULATED-NET-GAINS> 2,904
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 29,753
<NET-ASSETS> 153,809
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<INTEREST-INCOME> 1,650
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<EXPENSES-NET> 549
<NET-INVESTMENT-INCOME> 1,316
<REALIZED-GAINS-CURRENT> 3,212
<APPREC-INCREASE-CURRENT> 8,810
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<DISTRIBUTIONS-OF-GAINS> 486
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<NUMBER-OF-SHARES-SOLD> 157
<NUMBER-OF-SHARES-REDEEMED> 74
<SHARES-REINVESTED> 26
<NET-CHANGE-IN-ASSETS> 27,425
<ACCUMULATED-NII-PRIOR> 226
<ACCUMULATED-GAINS-PRIOR> 2,346
<OVERDISTRIB-NII-PRIOR> 0
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO MIDCORE GROWTH FUND
<SERIES>
<NUMBER> 12
<NAME> PORTICO MIDCORE GROWTH FUND - RETAIL SERIES
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<S> <C>
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<ACCUMULATED-NET-GAINS> (1,709)
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<ACCUM-APPREC-OR-DEPREC> 54,600
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<DIVIDEND-INCOME> 467
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<NET-INVESTMENT-INCOME> (14)
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<NUMBER-OF-SHARES-REDEEMED> 32
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<NET-CHANGE-IN-ASSETS> 31,598
<ACCUMULATED-NII-PRIOR> (1)
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<OVERDIST-NET-GAINS-PRIOR> 0
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<GROSS-EXPENSE> 791
<AVERAGE-NET-ASSETS> 159,807
<PER-SHARE-NAV-BEGIN> 25.58
<PER-SHARE-NII> (0.03)
<PER-SHARE-GAIN-APPREC> 3.98
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<PER-SHARE-NAV-END> 29.53
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000821612
<NAME> PORTICO INTERMEDIATE BOND MARKET FUND
<SERIES>
<NUMBER> 13
<NAME> PORTICO INTERMEDIATE BOND MARKET FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
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<PERIOD-END> APR-30-1996
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<SHARES-COMMON-PRIOR> 1,133
<ACCUMULATED-NII-CURRENT> 132
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<ACCUMULATED-NET-GAINS> (880)
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<ACCUM-APPREC-OR-DEPREC> (929)
<NET-ASSETS> 165,381
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<EXPENSES-NET> 420
<NET-INVESTMENT-INCOME> 4,641
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<NET-CHANGE-IN-ASSETS> 24,869
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<AVERAGE-NET-ASSETS> 162,599
<PER-SHARE-NAV-BEGIN> 10.21
<PER-SHARE-NII> 0.28
<PER-SHARE-GAIN-APPREC> (0.16)
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<PER-SHARE-NAV-END> 10.05
<EXPENSE-RATIO> 0.75
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO TAX-EXEMPT INTERMEDIATE BOND FUND
<SERIES>
<NUMBER> 14
<NAME> PORTICO TAX-EXEMPT INTERMEDIATE BOND FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
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<ACCUM-APPREC-OR-DEPREC> 20
<NET-ASSETS> 38,014
<DIVIDEND-INCOME> 0
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<NET-INVESTMENT-INCOME> 766
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<APPREC-INCREASE-CURRENT> (396)
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<SHARES-REINVESTED> 14
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<ACCUMULATED-GAINS-PRIOR> (142)
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<GROSS-EXPENSE> 195
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<PER-SHARE-NAV-BEGIN> 10.23
<PER-SHARE-NII> 0.20
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<PER-SHARE-NAV-END> 10.14
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000821612
<NAME> PORTICO INTERNATION EQUITY FUND
<SERIES>
<NUMBER> 15
<NAME> PORTICO INTERNATION EQUITY FUND - RETAIL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 43,067
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<PAID-IN-CAPITAL-COMMON> 42,965
<SHARES-COMMON-STOCK> 145
<SHARES-COMMON-PRIOR> 85
<ACCUMULATED-NII-CURRENT> (3)
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<NET-ASSETS> 45,678
<DIVIDEND-INCOME> 272
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<NET-INVESTMENT-INCOME> 19
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<APPREC-INCREASE-CURRENT> 4,331
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<NUMBER-OF-SHARES-REDEEMED> 8
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<PER-SHARE-NAV-BEGIN> 19.15
<PER-SHARE-NII> (0.01)
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000821612
<NAME> PORTICO SHORT-TERM BOND MARKET
<SERIES>
<NUMBER> 16
<NAME> PORTICO SHORT-TERM BOND MARKET FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
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<REALIZED-GAINS-CURRENT> 645
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<GROSS-EXPENSE> 800
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<PER-SHARE-NAV-BEGIN> 10.28
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<PER-SHARE-NAV-END> 10.20
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO BOND IMMDEX FUND
<SERIES>
<NUMBER> 17
<NAME> PORTICO BOND IMMDEX FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
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<GROSS-EXPENSE> 866
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO GROWTH AND INCOME FUND
<SERIES>
<NUMBER> 18
<NAME> PORTICO GROWTH AND INCOME FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
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<INVESTMENTS-AT-VALUE> 255,811
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<PAID-IN-CAPITAL-COMMON> 184,318
<SHARES-COMMON-STOCK> 6,576
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<ACCUMULATED-NET-GAINS> 12,121
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 59,379
<NET-ASSETS> 256,078
<DIVIDEND-INCOME> 2,309
<INTEREST-INCOME> 700
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<EXPENSES-NET> 1,094
<NET-INVESTMENT-INCOME> 1,915
<REALIZED-GAINS-CURRENT> 12,179
<APPREC-INCREASE-CURRENT> 19,830
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<NET-CHANGE-IN-ASSETS> 50,902
<ACCUMULATED-NII-PRIOR> 175
<ACCUMULATED-GAINS-PRIOR> 8,779
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,191
<AVERAGE-NET-ASSETS> 231,249
<PER-SHARE-NAV-BEGIN> 27.63
<PER-SHARE-NII> 0.25
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<PER-SHARE-DIVIDEND> 0.24
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO EQUITY INDEX FUND
<SERIES>
<NUMBER> 19
<NAME> PORTICO EQUITY INDEX FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 169,789
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<TOTAL-LIABILITIES> 4,185
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 164,906
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<SHARES-COMMON-PRIOR> 3,362
<ACCUMULATED-NII-CURRENT> 314
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<ACCUMULATED-NET-GAINS> 1,027
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 65,522
<NET-ASSETS> 231,770
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<EXPENSES-NET> 430
<NET-INVESTMENT-INCOME> 1,891
<REALIZED-GAINS-CURRENT> 1,442
<APPREC-INCREASE-CURRENT> 19,792
<NET-CHANGE-FROM-OPS> 23,125
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<ACCUMULATED-NII-PRIOR> 245
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<OVERDIST-NET-GAINS-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 496
<AVERAGE-NET-ASSETS> 194,171
<PER-SHARE-NAV-BEGIN> 41.08
<PER-SHARE-NII> 0.42
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<PER-SHARE-DIVIDEND> 0.42
<PER-SHARE-DISTRIBUTIONS> 0.35
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 45.82
<EXPENSE-RATIO> 0.42
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO SPECIAL GROWTH FUND
<SERIES>
<NUMBER> 20
<NAME> PORTICO SPECIAL GROWTH FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 448,488
<INVESTMENTS-AT-VALUE> 611,082
<RECEIVABLES> 6,968
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<PAYABLE-FOR-SECURITIES> 2,599
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<TOTAL-LIABILITIES> 3,147
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 417,011
<SHARES-COMMON-STOCK> 11,865
<SHARES-COMMON-PRIOR> 10,470
<ACCUMULATED-NII-CURRENT> (313)
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 162,564
<NET-ASSETS> 614,880
<DIVIDEND-INCOME> 789
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<EXPENSES-NET> 2,516
<NET-INVESTMENT-INCOME> (313)
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<APPREC-INCREASE-CURRENT> 45,292
<NET-CHANGE-FROM-OPS> 81,767
<EQUALIZATION> 0
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<DISTRIBUTIONS-OF-GAINS> 47,791
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<NUMBER-OF-SHARES-SOLD> 2,171
<NUMBER-OF-SHARES-REDEEMED> 1,920
<SHARES-REINVESTED> 1,144
<NET-CHANGE-IN-ASSETS> 93,383
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<GROSS-EXPENSE> 2,702
<AVERAGE-NET-ASSETS> 542,223
<PER-SHARE-NAV-BEGIN> 41.47
<PER-SHARE-NII> (0.02)
<PER-SHARE-GAIN-APPREC> 5.86
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<PER-SHARE-NAV-END> 42.73
<EXPENSE-RATIO> 0.89
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO BALANCED FUND
<SERIES>
<NUMBER> 21
<NAME> PORTICO BALANCED FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 123,235
<INVESTMENTS-AT-VALUE> 152,989
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<TOTAL-ASSETS> 154,251
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<TOTAL-LIABILITIES> 442
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 120,883
<SHARES-COMMON-STOCK> 4,611
<SHARES-COMMON-PRIOR> 4,036
<ACCUMULATED-NII-CURRENT> 268
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,904
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 29,753
<NET-ASSETS> 153,809
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<INTEREST-INCOME> 1,650
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<EXPENSES-NET> 549
<NET-INVESTMENT-INCOME> 1,316
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<APPREC-INCREASE-CURRENT> 8,810
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<NET-CHANGE-IN-ASSETS> 27,425
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<GROSS-EXPENSE> 749
<AVERAGE-NET-ASSETS> 139,342
<PER-SHARE-NAV-BEGIN> 25.90
<PER-SHARE-NII> 0.25
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<PER-SHARE-NAV-END> 27.65
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO MIDCORE GROWTH FUND
<SERIES>
<NUMBER> 22
<NAME> PORTICO MIDCORE GROWTH FUND - INSTITUTIONAL SERIS
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 122,879
<INVESTMENTS-AT-VALUE> 177,479
<RECEIVABLES> 500
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<TOTAL-ASSETS> 177,992
<PAYABLE-FOR-SECURITIES> 1,693
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 168
<TOTAL-LIABILITIES> 1,861
<SENIOR-EQUITY> 1
<PAID-IN-CAPITAL-COMMON> 123,252
<SHARES-COMMON-STOCK> 5,483
<SHARES-COMMON-PRIOR> 5,250
<ACCUMULATED-NII-CURRENT> (13)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,709)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 54,600
<NET-ASSETS> 176,131
<DIVIDEND-INCOME> 467
<INTEREST-INCOME> 248
<OTHER-INCOME> 0
<EXPENSES-NET> 729
<NET-INVESTMENT-INCOME> (14)
<REALIZED-GAINS-CURRENT> 3,361
<APPREC-INCREASE-CURRENT> 19,777
<NET-CHANGE-FROM-OPS> 23,124
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<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 991
<NUMBER-OF-SHARES-REDEEMED> 758
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 31,598
<ACCUMULATED-NII-PRIOR> (1)
<ACCUMULATED-GAINS-PRIOR> (5,070)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 595
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 791
<AVERAGE-NET-ASSETS> 159,807
<PER-SHARE-NAV-BEGIN> 25.61
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 3.99
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 29.60
<EXPENSE-RATIO> 0.90
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO INTERMEDIATE BOND MARKET FUND
<SERIES>
<NUMBER> 23
<NAME> PORTICO INTERMEDIATE BOND MARKET FUND - INSTITUTIONAL SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 163,376
<INVESTMENTS-AT-VALUE> 162,447
<RECEIVABLES> 2,995
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 165,494
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 113
<TOTAL-LIABILITIES> 113
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 167,056
<SHARES-COMMON-STOCK> 15,041
<SHARES-COMMON-PRIOR> 12,625
<ACCUMULATED-NII-CURRENT> 132
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (880)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (929)
<NET-ASSETS> 165,381
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,061
<OTHER-INCOME> 0
<EXPENSES-NET> 420
<NET-INVESTMENT-INCOME> 4,641
<REALIZED-GAINS-CURRENT> 954
<APPREC-INCREASE-CURRENT> (3,990)
<NET-CHANGE-FROM-OPS> 1,605
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<DISTRIBUTIONS-OF-INCOME> 4,263
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<NUMBER-OF-SHARES-SOLD> 4,045
<NUMBER-OF-SHARES-REDEEMED> 1,898
<SHARES-REINVESTED> 269
<NET-CHANGE-IN-ASSETS> 24,864
<ACCUMULATED-NII-PRIOR> 112
<ACCUMULATED-GAINS-PRIOR> (1,834)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 404
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 617
<AVERAGE-NET-ASSETS> 162,599
<PER-SHARE-NAV-BEGIN> 10.21
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> (0.16)
<PER-SHARE-DIVIDEND> 0.29
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<PER-SHARE-NAV-END> 10.05
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO TAX-EXEMPT INTERMEDIATE BOND FUND
<SERIES>
<NUMBER> 24
<NAME> PORTICO TAX-EXEMPT INTERMEDIATE BOND FUND - INSTITUTIONAL
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 37,243
<INVESTMENTS-AT-VALUE> 37,445
<RECEIVABLES> 712
<ASSETS-OTHER> 10
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 38,167
<PAYABLE-FOR-SECURITIES> 107
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 46
<TOTAL-LIABILITIES> 153
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 37,903
<SHARES-COMMON-STOCK> 2,827
<SHARES-COMMON-PRIOR> 2,696
<ACCUMULATED-NII-CURRENT> 20
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (111)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 202
<NET-ASSETS> 38,014
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 868
<OTHER-INCOME> 0
<EXPENSES-NET> 102
<NET-INVESTMENT-INCOME> 766
<REALIZED-GAINS-CURRENT> 31
<APPREC-INCREASE-CURRENT> (396)
<NET-CHANGE-FROM-OPS> 401
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<DISTRIBUTIONS-OF-INCOME> 595
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 531
<NUMBER-OF-SHARES-REDEEMED> 421
<SHARES-REINVESTED> 21
<NET-CHANGE-IN-ASSETS> 2,708
<ACCUMULATED-NII-PRIOR> 20
<ACCUMULATED-GAINS-PRIOR> (142)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 92
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 195
<AVERAGE-NET-ASSETS> 36,882
<PER-SHARE-NAV-BEGIN> 10.24
<PER-SHARE-NII> 0.22
<PER-SHARE-GAIN-APPREC> (0.10)
<PER-SHARE-DIVIDEND> 0.22
<PER-SHARE-DISTRIBUTIONS> 0
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<PER-SHARE-NAV-END> 10.14
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000824612
<NAME> PORTICO INTERNATIONAL EQUITY FUND
<SERIES>
<NUMBER> 25
<NAME> PORTICO INTERNATIONAL EQUITY FUND - INST'L SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 43,067
<INVESTMENTS-AT-VALUE> 45,567
<RECEIVABLES> 198
<ASSETS-OTHER> 1,545
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<TOTAL-ASSETS> 47,310
<PAYABLE-FOR-SECURITIES> 1,372
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 260
<TOTAL-LIABILITIES> 1,632
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 42,965
<SHARES-COMMON-STOCK> 2,025
<SHARES-COMMON-PRIOR> 1,625
<ACCUMULATED-NII-CURRENT> (3)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 223
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,493
<NET-ASSETS> 45,678
<DIVIDEND-INCOME> 272
<INTEREST-INCOME> 36
<OTHER-INCOME> 0
<EXPENSES-NET> 289
<NET-INVESTMENT-INCOME> 19
<REALIZED-GAINS-CURRENT> 228
<APPREC-INCREASE-CURRENT> 4,331
<NET-CHANGE-FROM-OPS> 4,578
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<DISTRIBUTIONS-OF-INCOME> 174
<DISTRIBUTIONS-OF-GAINS> 637
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<NUMBER-OF-SHARES-SOLD> 448
<NUMBER-OF-SHARES-REDEEMED> 85
<SHARES-REINVESTED> 37
<NET-CHANGE-IN-ASSETS> 12,858
<ACCUMULATED-NII-PRIOR> 156
<ACCUMULATED-GAINS-PRIOR> 666
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 285
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 457
<AVERAGE-NET-ASSETS> 38,461
<PER-SHARE-NAV-BEGIN> 19.19
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 2.33
<PER-SHARE-DIVIDEND> 0.10
<PER-SHARE-DISTRIBUTIONS> 0.37
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 21.05
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
