<PAGE> 1
Semi-Annual
Report
June 30, 1996
[LOGO]
ATLAS FUNDS
The investments you want from the people you trust.
NOT FDIC INSURED
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Table of Contents
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<TABLE>
<S> <C>
Letter from the President...................................................................................... 2
Atlas Stock and Bond Fund Total Returns........................................................................ 5
Statements of Investments in Securities and Net Assets......................................................... 6
Statements of Assets and Liabilities........................................................................... 26
Statements of Operations....................................................................................... 28
Statements of Changes in Net Assets............................................................................ 30
Financial Highlights........................................................................................... 34
Notes to Financial Statements.................................................................................. 42
</TABLE>
<PAGE> 3
(ATLAS FUNDS LOGO)
FROM THE OFFICE OF MARION O. SANDLER
President and Chief Executive Officer
Dear Valued Investor,
We are pleased to report that after reaching record
highs in 1995, the stock market showed continued strength
during the first half of 1996, gaining 10.10% as measured
by the Standard & Poors 500 Index. The picture was not as
bright for bond prices, which fell steadily from February
through May. Fears of an overheating economy caused
interest rates to rise, and the price of the 30-year U.S.
Treasury Bond -- a frequently used indicator for the
long-term bond market -- fell approximately 10% during the
first half of the year.
Events of the last six months are an example of the
cyclicality that can affect markets -- and not all markets
the same way. We firmly believe that the best way to deal
with these changes, and often to benefit from them, is to
have well-established financial goals, a diversified
portfolio, and a disciplined, long-term approach to
investing.
The Year To Date
The stock market advanced strongly during the first
six weeks of 1996, with the Dow Jones Industrial Average
rising approximately 10%, on top of a gain of 36% for all
of 1995. In mid-February, a government report on job
growth, indicating that employment was growing at the
fastest rate in 12 years, brought an abrupt change in the
markets. Surprised by signs of a stronger than expected
economy, bond market prices declined sharply, and yields
for the 30-year U.S. Treasury Bond climbed toward 7%. The
increase in stock and bond market volatility seen during
the rest of the first half of the year can be attributed
to investor uncertainty about economic growth, inflation,
the direction of interest rates, and the outlook for
corporate profits. Despite the swings in the market,
stocks held on to the gains made in January and February
through the end of the second quarter, and investors
continued to pour record amounts into equity mutual funds.
Small company stocks outperformed larger companies by wide
margins.
The following sections provide an overview of the
Atlas Fund family for the first half of 1996. The total
returns and yields discussed below are for Class A shares
only and are stated at net asset value, excluding sales
charges. For complete stock and bond fund performance, see
page 5. Of course, past performance is no guarantee of
future results, but these returns are certainly worth
noting.
Money Funds
<TABLE>
<S> <C>
During the first six months of the year, the Atlas
money funds -- U.S. Treasury Money, California Municipal
Money, and National Municipal Money -- continued to provide
investors with attractive yields, after-tax advantages, and
money market stability. Atlas money funds hold only top
quality securities. Unlike a large number of municipal
money market funds, Atlas municipal money funds currently
hold no securities backed by Japanese letters of credit. At
present, in our estimation, the quality of these securities
is poor, because they rely on credit enhancements from
Japanese banks that are suffering through a period of (NOT FDIC-INSURED
unsatisfactory financial performance. INFO)
</TABLE>
2
<PAGE> 4
Intermediate-Term Bond Funds
The shorter maturities of the intermediate municipal bond
funds should make them generally less sensitive to interest
rate changes than their long-term counterparts. During the
first half of the year, Atlas intermediate municipal funds
maintained even shorter maturities than their peer group
averages to further limit price volatility in the face of
uncertain trends in interest rates. Total returns for the first
half were 0.21% for the California Insured Intermediate
Municipal Fund and -0.02% for the National Insured Intermediate
Municipal Fund. Intermediate-term rates stayed relatively high,
and, at the end of the second quarter, the Funds were producing
attractive tax-advantaged 30-day yields of 4.08% and 4.17%.
The U.S. Government Intermediate Fund, in an attempt to
maintain high yields for its shareholders, continued with an
average maturity of approximately nine years. Even though the
six-month total return for this Fund was -0.15%, it
outperformed the U.S. Government intermediate fund average
total return of -1.49%, as tracked by Lipper Analytical
Services, Inc. ("Lipper").
As always, credit quality is emphasized, and all three
intermediate funds remained invested exclusively in securities
rated "AAA" or the equivalent.
Long-Term Bond Funds
Prices on the Atlas long-term bond funds fell from February
through May, as interest rates rose, and then recovered
somewhat in June. The portfolio managers for the long-term bond
Funds have attempted to reduce price volatility by shortening
maturities and emphasizing credit quality. Total returns for
these Funds year-to-date through June 30 are as follows: the
U.S. Government and Mortgage Securities Fund, -0.07%; the
California Municipal Bond Fund, -1.02%; and the National
Municipal Bond Fund, -0.93%. Despite a difficult six months,
all Atlas long-term bond funds significantly outperformed their
respective peer group averages. The Funds continue to be
positioned defensively as we move into the last half of the
year, and they will remain so as long as the interest rate
outlook is clouded.
The U.S. Government and Mortgage Securities Fund remained
invested exclusively in securities rated or equivalent to
"AAA". In addition to tax-free income, the long-term municipal
funds also feature very high credit quality. According to the
most recent Lipper survey of portfolio composition dated March
31, 1996, the Atlas California Municipal Bond Fund had 97% of
its securities rated "AAA"or "AA", the highest percentage of
all 92 California municipal debt funds surveyed. The National
Municipal Bond Fund had 98% of its portfolio rated "AAA" or
"AA", also the highest percentage of the 223 general municipal
debt funds tracked by Lipper.
Stock Funds
The Atlas Balanced Fund, our most conservative stock fund,
experienced a total return for the first six months of 6.80%.
The Fund's equity strategy during the first half of the year
was defensive, due to concern over corporate earnings and
inflation. The Fund's manager maintained existing holdings, but
used inflows to build cash, rather than to buy additional
stocks. The current mix of 31% stocks, 23% convertible
securities, 28% bonds, and 18% short-term cash equivalents
maintains this defensive posture and positions the Fund to take
advantage of changing market opportunities over the rest of the
year.
The Atlas Growth and Income Fund produced a first half
total return of 11.86%, outperforming the total returns for the
Standard & Poors 500 Index (10.10%) and the growth and income
fund average as tracked by Lipper (9.24%). The Fund has
maintained a portfolio of small, mid and large capitalization
stocks. Continued
(continued on next page)
3
<PAGE> 5
emphasis is placed on companies with strong fundamentals,
visible earnings growth, and attractive valuations, since
the Fund manager expects these to be the best performers
as increasing attention is paid to corporate profits. At
the end of the second quarter, the portfolio was 83%
invested in stocks, 9% in convertible securities, and 8%
in cash equivalents.
The Atlas Strategic Growth Fund benefitted
significantly during the first half of the year from its
holdings in technology stocks, achieving a total return
of 9.93% for six months. The Fund took profits in many of
its technology holdings during the first and second
quarters, as these stocks reached their price targets.
New stocks were purchased in the retailing and financial
sectors, which the manager believes will outperform the
market in the second half, due to strong fundamentals. At
the end of the second quarter, the Fund was 77% invested
in equities and 23% in cash equivalents.
On April 30, 1996, we introduced the Atlas Global
Growth Fund to enable our investors to further diversify
their portfolios and take advantage of investment
opportunities around the world. Finding better values
abroad than at home, Fund managers have been reducing
exposure to the U.S. market in favor of corporate
restructuring and growth opportunities in Europe and
Japan. As of June 30, 1996, the Fund was 82% invested in
stocks (of which 75% were in non-U.S. securities) and 18%
in cash, and had a total return of 1.18% for its first
two months.
Introducing The Exciting New Atlas Strategic Income Fund
On July 1, 1996, after the close of the second
quarter, we introduced the Atlas Strategic Income Fund
for sale to retail investors whose primary goal is high
current income. The Fund invests in a combination of U.S.
Government securities, foreign fixed income debt, and
high yield, lower rated U.S. corporate bonds. Your Atlas
Representative will be happy to tell you more about the
Fund and provide you with a prospectus.
The Importance Of Asset Allocation
Experienced investors know that there is no "sure
thing" when it comes to financial markets, but
establishing a good Asset Allocation program is
recommended by nearly all investment professionals. By
knowing your own tolerance for risk and diversifying your
assets among stocks, bonds, cash, and international
markets, you are well positioned to achieve your goals.
If you haven't already done so, I urge you to talk with
your Atlas Representative about Asset Allocation, a
personalized investment planning service, available
absolutely free from Atlas. Call your Atlas
Representative today, or 1-800-933-ATLAS for the name of
an Atlas Representative near you.
The Investments You Want From The People You Trust
As a sister company of World Savings and a member of
the $35 billion-strong Golden West Financial Corporation,
Atlas is dedicated to giving you the quality products,
personal service and caring professional advice you've
come to expect from World. We thank you for your
continued trust in Atlas. We look forward to serving you
for many years to come.
Sincerely,
(SANDLER SIGNATURE)
(Mrs.) Marion O. Sandler
President and Chief Executive Officer
4
<PAGE> 6
Atlas Stock and Bond Fund Total Returns for periods ended June 30, 1996
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<TABLE>
<CAPTION>
Class A Shares Class B Shares(1)
----------------------------------------------------- -------------------------------------
12 Months 5 Years Inception To Date 12 Months Inception To Date
----------------- ----------------- ----------------- ----------------- ------------------
at with at with at with without with without with
net maximum net maximum net maximum deferred deferred deferred deferred
asset sales asset sales asset sales sales sales sales sales
value charge(2) value charge(2) value charge(2) charge charge(3) charge charge(3)
% % % % % % % % % %
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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Bond Funds:
California Insured
Intermediate Municipal(4)----- 4.15 1.03 N.A. N.A. 4.73 3.70 3.58 0.58 4.90 3.46
National Insured
Intermediate Municipal(4)----- 4.03 0.91 N.A. N.A. 4.71 3.68 3.36 0.37 4.84 3.40
U.S. Government
Intermediate(5)--------------- 3.45 0.34 N.A. N.A. 3.90 3.06 2.87 -0.06 4.62 3.24
California
Municipal Bond(6)------------- 5.34 2.18 7.23 6.58 7.70 7.19 4.90 1.90 5.32 3.88
National
Municipal Bond(7)------------- 5.67 2.50 7.69 7.04 7.92 7.41 5.04 2.04 5.74 4.31
U.S. Government
and Mortgage
Securities(8)----------------- 5.06 1.91 7.44 6.79 8.08 7.57 4.55 1.60 7.57 6.17
Strategic Income(9)----------- N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
Stock Funds:
Balanced(10)------------------17.40 13.88 N.A. N.A. 10.63 9.41 16.84 13.84 15.96 14.66
Growth and Income(11)---------28.20 24.35 14.56 13.86 16.03 15.40 27.58 24.58 24.61 23.40
Strategic Growth(10)----------21.34 17.70 N.A. N.A. 14.27 13.01 20.70 17.70 19.39 18.12
Global Growth(12)------------- N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
</TABLE>
(1) 7/1/94 inception for all Class B shares, except for Strategic Income and
Global Growth
(2) Maximum sales charge is 3%
(3) Assumes complete redemption at the end of the given period and imposition
of the maximum 3% Contingent Deferred Sales Charge
(4) 6/1/93 inception
(5) 10/5/92 inception
(6) 1/24/90 inception
(7) 1/26/90 inception
(8) 1/19/90 inception
(9) 5/20/96 inception; meaningful performance information not yet available
(10) 10/1/93 inception
(11) 12/5/90 inception
(12) 4/30/96 inception; meaningful performance information not yet available
5
<PAGE> 7
Statements of Investments in Securities and Net Assets June 30, 1996
(unaudited)
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<TABLE>
<CAPTION>
Atlas U.S. Treasury Money Fund
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
UNITED STATES TREASURY BILLS - 100.30%
4.70% - 4.89% due
07/05/96 - 08/08/96............... $35,603,000 $ 35,523,697
4.92% - 4.98% due
07/05/96 - 07/25/96............... 13,023,000 13,004,738
5.00% - 5.08% due
07/05/96 - 08/22/96............... 11,769,000 11,687,018
----------
Total United States Treasury Bills (cost:
$60,215,453) 60,215,453
----------
TOTAL SECURITIES (COST: $60,215,453) - 100.30% 60,215,453
OTHER ASSETS AND LIABILITIES, NET - (.30)% (181,191)
----------
NET ASSETS - 100.00% $ 60,034,262
==========
<CAPTION>
Atlas California Municipal Money Fund
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER - 24.29%
Long Beach, Harbor Department
Revenue, Series A, AMT, 3.60% due
07/24/96........................... $1,400,000 $ 1,400,000
Los Angeles County, Metropolitan
Transportation Authority Revenue,
3.55% due 07/24/96................. 1,000,000 1,000,000
Metropolitan Water District,
Southern California, Series B,
3.60% due 07/22/96................. 700,000 700,000
Puerto Rico, Government Development
Bank, 3.30% due 08/09/96........... 1,000,000 1,000,000
Sacramento, Municipal Utility
District, Series H, 3.25% due
08/08/96........................... 1,500,000 1,500,000
State General Obligation,
3.50% due 07/16/96................. 1,300,000 1,300,000
State Pollution Control Financing
Authority, Pollution Control
Revenue Refunding, Pacific Gas &
Electric, Series E, 3.15% due
07/25/96........................... 2,200,000 2,200,000
----------
Total Tax-Exempt Commercial Paper (cost:
$9,100,000) 9,100,000
----------
FIXED RATE BONDS AND NOTES - 34.58%
Azusa, Redevelopment Agency, Tax
Allocation, West End Redevelopment
Project, Series A, 3.55% due
08/01/96........................... 500,000 511,787
Brea, Redevelopment Agency, Sub-Tax
Allocation Redevelopment Project,
Area AB, 3.80% due 09/15/96........ 875,000 905,198
Fontana, Special Tax Community
Facility District 2, Series A,
3.30% due 09/01/96................. 100,000 103,244
Kern, High School District, Tax and
Revenue Refunding, Series A, MBIA
Insured, 3.70% due 02/01/97........ 200,000 202,425
Los Angeles County, Tax and Revenue
Anticipation Notes, 3.80% due
07/01/96........................... 1,500,000 1,500,000
Los Angeles County, Transportation
Commission Sales Tax Revenue,
Series A, 3.50% due 07/01/96....... 500,000 510,000
Metropolitan Water District of
Southern California Refunding,
Series A3,
3.70% due 03/01/97................. 100,000 100,270
<CAPTION>
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
Oxnard School District, Series A,
MBIA Insured, 3.10% due 08/01/96... $ 640,000 $ 655,229
Paramount Unified School District,
Tax and Revenue Anticipation Notes,
4% due 06/30/97.................... 1,000,000 1,004,764
Sacramento, Municipal Utilities
District Electric Revenue, Series
L, 3.70% due 11/01/96.............. 1,000,000 1,019,259
San Bernardino County, Tax and
Revenue Anticipation Notes, 3.95%
due 07/05/96....................... 1,000,000 1,000,058
San Diego County, Tax and Revenue
Anticipation Notes, 3.55% due
09/30/96........................... 500,000 500,989
San Francisco City & County, City
Hall Improvement Project, Series A,
FGIC Insured, 3.60% due 06/15/97... 800,000 825,222
Santa Ana, COP, Santa Ana Recycling
Project, Series A, AMT, AMBAC
Insured, 3.90% due 05/01/97........ 230,000 230,000
Santa Clara County, COP, Capital
Project 1, 3.15% due 10/01/96...... 1,300,000 1,339,879
State School Cash Reserve Program
Authority Pool, Series A,
3.85% due 07/02/97................. 1,000,000 1,008,592
Sonoma Valley Unified School
District, FSA Insured, 3.50% due
08/01/96........................... 300,000 301,112
State Public Works Board Lease
Revenue, State Prison, Corcoran,
Series A,
3.10% due 09/01/96................. 200,000 205,280
University of California Revenue
Housing System, Group A, Series X,
MBIA Insured, 3.60% due 11/01/96... 1,000,000 1,034,180
----------
Total Fixed Rate Bonds and Notes (cost:
$12,957,488) 12,957,488
----------
VARIABLE RATE DEMAND NOTES* - 45.40%
Anaheim, Housing Authority, Multi-
Family Housing Revenue, Bel Age
Project, Series A, AMT,
3.20% due 07/15/20................. 100,000 100,000
Lassen, Municipal Utility District
Revenue Refunding, Series A, AMT,
FSA Insured, 3.45% due 05/01/08.... 1,000,000 1,000,000
Los Angeles, Community Redevelopment
Agency, COP, Baldwin Hills Public
Park, 3.25% due 12/01/14........... 600,000 600,000
Los Angeles County, Community
Pension Obligation Refunding,
Series C, AMBAC Insured, 3.15% due
06/30/07........................... 400,000 400,000
Los Angeles, Multi-Family Housing
Revenue, Masselin Manor,
3.05% due 07/01/15................. 100,000 100,000
Los Angeles, Regional Airports
Improvement Corp. Lease Revenue,
American Airlines, Los Angeles
International Airport,
Series D, 3.65% due 12/01/24....... 200,000 200,000
Series E, 3.65% due 12/01/24....... 300,000 300,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 8
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<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
Los Angeles County, Regional
Airports Improvement Corp.,
Terminal Facilities Completion
Revenue, Los Angeles International
Airport, AMT,
3.75% due 12/01/25................. $ 200,000 $ 200,000
Moorpark, Multi-Family Housing
Revenue Refunding, Le Club
Apartments Project, Series A, 3.05%
due 11/01/15....................... 200,000 200,000
Northern California Power Agency
Public Power Revenue Refunding,
Geothermal Project 3, Series A,
AMBAC Insured, 3.15% due
07/01/05........................... 500,000 500,000
Otay, Water District, COP, Capital
Projects, 3.25% due 09/01/26....... 700,000 700,000
Riverside, Multi-Family Revenue
Refunding, Sierra Apartments,
Series A, 2.85% due 06/01/05....... 500,000 500,000
Sacramento County, COP,
Administration Center and Court
House Project,
3.10% due 06/01/20................. 900,000 900,000
San Diego, Housing Authority Multi-
Family Housing Revenue, Market
Street Square Apartments Projects,
Series G, 3.10% due 11/01/25....... 1,300,000 1,300,000
San Diego County, Multi-Family
Housing Revenue, Country Hills,
Series A,
3.10% due 08/15/13................. 180,000 180,000
San Jose, Multi-Family Mortgage
Revenue, Somerset Park, Series A,
AMT, 3.30% due 11/01/17............ 1,600,000 1,600,000
State Health Facilities Financing
Authority Revenue Refunding,
Catholic Healthcare West, Series A,
MBIA Insured,
3% due 07/01/09.................... 100,000 100,000
Children's Hospital, MBIA Insured,
3% due 11/01/21.................... 100,000 100,000
Enloe Memorial Hospital, Series A,
3.15% due 01/01/16................. 200,000 200,000
Pool Program, Series 1990A,
2.80% due 09/01/20................. 700,000 700,000
State Pollution Control Financing
Authority, Industrial Development
Revenue, Southdown, Inc.,
3.40% due 4/15/98.................. 100,000 100,000
State Pollution Control Financing
Authority, Pollution Control
Revenue Refunding,
Pacific Gas & Electric, Series B,
AMT, 3.40% due 12/01/16............ 1,000,000 1,000,000
Southdown, Inc., Series B,
3.40% due 09/15/98................. 600,000 600,000
State Pollution Control Financing
Authority, Resource Recovery
Revenue Refunding,
Burney Forest Products Project,
Series A, AMT, 3.65% due
09/01/20........................... 100,000 100,000
Delano Project, AMT,
3.75% due 08/01/19................. 100,000 100,000
Ultrapower Rocklin, Series A, AMT,
3.80% due 06/01/17................. 100,000 100,000
<CAPTION>
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
Statewide Communities Development
Corp. Revenue, Industrial
Development,
Johanson Project, Series E, 3.25%
due 11/01/20....................... $ 700,000 $ 700,000
Karcher Property Project, Series C,
AMT, 3.25% due 12/01/19............ 1,000,000 1,000,000
Setton Properties Project, AMT,
3.40% due 10/01/10................. 1,000,000 1,000,000
Staub Project, Series A, AMT,
3.25% due 08/01/02................. 800,000 800,000
Tri-Valley Industrial Development,
Series F, AMT, 3.25% due
12/01/10........................... 700,000 700,000
Turlock, Irrigation District
Revenue, Series A, 3.10% due
01/01/14........................... 930,000 930,000
----------
Total Variable Rate Demand Notes (cost:
$17,010,000) 17,010,000
----------
TOTAL SECURITIES (COST: $39,067,488) - 104.27% 39,067,488
OTHER ASSETS AND LIABILITIES, NET - (4.27)% (1,598,343)
----------
NET ASSETS - 100.00% $ 37,469,145
==========
<CAPTION>
Atlas National Municipal Money Fund
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER - 6.78%
Municipal Electric Authority,
Georgia, Project One, Series E,
3.60% due 09/16/96................. $ 200,000 $ 200,000
West Virginia, Public Energy
Authority, Energy Revenue,
Morgantown Association Project,
AMT, 3.50% due 08/09/96............ 300,000 300,000
----------
Total Tax-Exempt Commercial Paper (cost:
$500,000) 500,000
----------
FIXED RATE BONDS AND NOTES - 36.37%
Cochise County, Arizona, Pollution
Control Corp., Solid Waste Disposal
Revenue, Arizona Electric Power
Coop., Inc. Project, AMT, 3.30% due
09/01/96........................... 200,000 200,000
Delaware County, Pennsylvania,
Middletown Township, Sewer
Authority Sewer Revenue, AMBAC
Insured,
3.60% due 11/15/96................. 100,000 100,924
Fargo, North Dakota, Refunding,
Series B, 3.927% due 07/01/97...... 100,000 99,875
Hawaii, State Refunding, Series CD,
3.80% due 02/01/97................. 250,000 250,418
Jackson County, Mississippi,
Refunding Water System, 3.30% due
08/01/96........................... 100,000 100,000
Lancaster, Pennsylvania School
District, FGIC Insured, 3.70% due
11/15/96........................... 110,000 110,156
Miami Beach, Florida, Water and
Sewer Revenue, FSA Insured,
3.80% due 09/01/96................. 250,000 250,295
</TABLE>
7
<PAGE> 9
Statements of Investments in Securities and Net Assets June 30, 1996
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Money Fund (continued)
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
Middlesex County, New Jersey,
Utilities Authority Solid Waste
System Revenue, FGIC Insured, 3.30%
due 12/01/96....................... $ 250,000 $ 252,045
Milwaukee, Wisconsin, Promissory
Notes, Series C5, 3.884% due
11/15/96........................... 265,000 266,081
Pennsylvania, State Turnpike
Commission Turnpike Revenue, Series
A, 3.75% due 12/01/96.............. 430,000 445,697
South Denver, Colorado, Metropolitan
District, 3.65% due 12/01/96....... 300,000 300,000
Texas, Trinity River Authority
Project, Regional Wastewater
System, FGIC Insured, 3.40% due
08/01/96........................... 205,000 206,060
Utah, Intermountain Power Agency,
Utah Power Supply Revenue 1986,
Series C, 4.139% due 07/01/96...... 100,000 100,000
----------
Total Fixed Rate Bonds and Notes (cost:
$2,681,551) 2,681,551
----------
VARIABLE RATE DEMAND NOTES* - 56.08%
Butte-Silver Bow, Montana, Pollution
Control Revenue Refunding, Rhone-
Poulenc, Inc. Project,
3.30% due 09/01/01................. 200,000 200,000
Chillicothe, Iowa, Pollution Control
Revenue Refunding, Midwest Power
System, Inc., Series A,
3.40% due 05/01/23................. 300,000 300,000
Delaware, State Economic Development
Authority Revenue, Gas Facilities
Refunding, Delmarva Power & Light
Co. Project, Series C,
3.60% due 10/01/28................. 100,000 100,000
Dubuque, Iowa, Industrial
Development Revenue, Swiss Valley
Farms Co. Project, AMT, 3.55% due
12/01/01........................... 100,000 100,000
Flint, Michigan, Hospital Building
Authority Revenue, Hurley Medical
Center, Series B, 3.55% due
07/01/15........................... 100,000 100,000
Florida, Housing Finance Agency,
Multi-Family Refunding, Series E,
3.30% due 04/01/26................. 200,000 200,000
Grand Prairie, Texas, Housing
Finance Corp., Multi-Family Housing
Revenue Refunding, Winridge Grand
Prairie, 3.30% due 06/01/10........ 300,000 300,000
Halifax County, North Carolina,
Industrial Facilities and Pollution
Control Funding Authority Revenue,
Westmoreland, AMT,
3.85% due 12/01/19................. 200,000 200,000
Illinois, Development Finance
Authority Revenue, Residential
Rental, F.C. Harris Pavilion
Project, AMT, FNMA Insured, 3.40%
due 04/01/24....................... 200,000 200,000
Lakewood, Colorado, Industrial
Development Revenue, Service
Merchandise Co. Project,
3.60% due 12/15/99................. 200,000 200,000
<CAPTION>
Atlas National Municipal Money Fund (continued)
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
Marion County, West Virginia, County
Commission Solid Waste Disposal
Facility Revenue, Granttown
Project, Series A, AMT, 3.60% due
10/01/17........................... $ 100,000 $ 100,000
Naperville, Illinois, Industrial
Development Revenue, Service
Merchandise Co. Project,
3.60% due 11/30/24................. 300,000 300,000
Prairie Du Chien, Wisconsin,
Industrial Development Revenue,
Oxford International Ltd. Project,
AMT, 3.60% due 06/01/02............ 400,000 400,000
Rockwall, Texas, Industrial
Development Corp., Industrial
Development Revenue, Columbia
Extrusion Corp., AMT,
3.65% due 07/01/14................. 335,000 335,000
Saint Louis, Missouri, Industrial
Development Authority, Industrial
Development Revenue, Service
Merchandise Co. Project,
3.60% due 09/15/98................. 100,000 100,000
Salt Lake City, Utah, Airport
Revenue, Series A, AMT, 3.40% due
06/01/98........................... 100,000 100,000
Schuylkill County, Pennsylvania,
Industrial Development Authority
Revenue,
Pine Grove Landfill, Inc., AMT,
3.85% due 10/01/19................. 200,000 200,000
Southampton County, Virginia,
Industrial Development Authority
Revenue, Exempt Facility, Hadson
Power 11, Series A, AMT, 3.90% due
04/01/15........................... 100,000 100,000
South Carolina, Jobs Economic
Development Authority Economic
Development Revenue, Wellman, Inc.
Project, AMT, 3.90% due 12/01/12... 100,000 100,000
Texas, North Texas Higher Education
Authority, Inc., Texas Student Loan
Revenue Refunding,
Series A, AMT, AMBAC Insured,
3.55% due 04/01/36................. 100,000 100,000
Series F, AMT, AMBAC Insured,
3.40% due 04/01/20................. 200,000 200,000
Winston-Salem, North Carolina, COP,
Risk Acceptance Management Corp.,
3.15% due 07/01/09................. 200,000 200,000
----------
Total Variable Rate Demand Notes (cost:
$4,135,000) 4,135,000
----------
TOTAL SECURITIES (COST: $7,316,551) - 99.23% 7,316,551
OTHER ASSETS AND LIABILITIES, NET - .77% 57,039
----------
NET ASSETS - 100.00% $ 7,373,590
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE> 10
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Insured Intermediate
Municipal Fund
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
BONDS - 96.15%
Contra Costa, Transportation
Authority Sales Tax Revenue, Series
A, FGIC Insured, 6% due 03/01/08... $ 500,000 $ 529,245
Cupertino Unified School District,
Series A, FGIC Insured,
6.75% due 08/01/05................. 500,000 564,440
Elk Grove Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured,
6.50% due 12/01/06................. 600,000 667,758
Folsom School Facilities Project,
Series B, FGIC Insured,
6% due 08/01/98.................... 425,000 440,925
6% due 08/01/99.................... 225,000 235,357
Fresno Sewer Revenue, Series A, MBIA
Insured, 6% due 09/01/07........... 500,000 532,665
Fresno Water System Revenue, Water
Remediation Project, Series A,
FGIC Insured,
7.50% due 06/01/04................. 500,000 580,940
7.50% due 06/01/05................. 715,000 830,480
Kern High School District Refunding,
Series A, MBIA Insured,
6% due 08/01/04.................... 500,000 534,285
Lincoln Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured,
6% due 09/01/06.................... 580,000 614,371
Los Angeles County, Metropolitan
Transportation Authority
Sales Tax Revenue,
Proposition C, Second Series A,
AMBAC Insured, 5.90% due
07/01/06........................... 500,000 530,645
Proposition C, Second SNR, Series
B, AMBAC Insured, 8% due
07/01/00........................... 500,000 562,750
Los Angeles County, Transportation
Commission, Sales Tax Revenue
Refunding, Series A, FGIC Insured,
6.75% due 07/01/18................. 1,000,000 1,109,700
Los Angeles Wastewater System
Revenue,
Series B, AMBAC Insured,
5.90% due 06/01/03................. 450,000 477,765
Series B, MBIA Insured,
8.80% due 06/01/99................. 290,000 324,142
Series D, MBIA Insured,
6% due 12/01/98.................... 250,000 260,322
Northern California Power Agency,
Public Power Revenue, MBIA Insured,
6.125% due 08/15/99................ 400,000 420,068
Port of Oakland, Port Revenue,
Series E, AMT, MBIA Insured, 6% due
11/01/02........................... 500,000 528,240
Puerto Rico, Electric Power
Authority Power Revenue, MBIA
Insured,
Series W, 6.50% due 07/01/05....... 250,000 276,930
Series Y, 6.50% due 07/01/06....... 500,000 552,275
Puerto Rico, Public Buildings
Authority Revenue, Gtd. Government
Facilities, Series A, AMBAC
Insured,
6.75% due 07/01/04................. 700,000 784,931
<CAPTION>
Atlas California Insured Intermediate
Municipal Fund (continued)
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
Riverside County Transportation
Commission, Sales Tax Revenue,
Series A, AMBAC Insured,
6.625% due 06/01/02................ $1,000,000 $ 1,102,880
Sacramento Municipal Utility
District, Electric Revenue
Refunding, Series Z, FGIC Insured,
6% due 07/01/02.................... 475,000 506,740
San Francisco Bay Area Rapid Transit
District, Sales Tax Revenue,
FGIC Insured,
6% due 07/01/99.................... 300,000 313,473
6.20% due 07/01/01................. 750,000 802,785
San Francisco City and County Sewer
Revenue, Series A, AMBAC Insured,
7.50% due 10/01/05................. 250,000 265,192
San Jose Redevelopment Agency Tax
Allocation, Merged Area
Redevelopment Project Refunding,
MBIA Insured,
5.50% due 08/01/00................. 395,000 409,445
Santa Clara Electric Revenue, Series
A, MBIA Insured,
5.75% due 07/01/99................. 640,000 664,275
5.80% due 07/01/00................. 250,000 261,705
Simi Valley Unified School District
Refunding, FGIC Insured,
6.25% due 08/01/04................. 700,000 756,637
State Health Facilities Financing
Authority, Revenue Refunding,
Unihealth America, Series A, AMBAC
Insured, 7.625% due 10/01/15....... 600,000 655,662
State Housing Finance Agency
Revenue, Home Mortgage, Series C,
AMT, MBIA Insured,
5.25% due 08/01/06................. 580,000 575,047
State Pollution Control Financing
Authority, Pollution Control
Revenue, Southern California
Edison, Series A, AMT, MBIA
Insured,
6.90% due 09/01/06................. 410,000 440,082
Turlock Irrigation District Revenue
Refunding, Series A, MBIA Insured,
5.90% due 01/01/02................. 80,000 84,571
6% due 01/01/07.................... 1,000,000 1,062,470
University of Puerto Rico,
University Revenues Refunding,
Series N, MBIA Insured, 6% due
06/01/99........................... 500,000 521,155
----------
Total Bonds (cost: $19,596,281) 19,780,353
----------
VARIABLE RATE DEMAND NOTES* - 1.94%
Los Angeles County, Regional
Airports Improvement Corp., Los
Angeles International Airport,
Lease Revenue American Airlines,
Series C, 3.65% due 12/01/24....... 100,000 100,000
</TABLE>
9
<PAGE> 11
Statements of Investments in Securities and Net Assets June 30, 1996
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Insured Intermediate
Municipal Fund (continued)
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
Terminal Facilities Completion
Revenue, AMT, 3.75% due 12/01/25... $ 300,000 $ 300,000
----------
Total Variable Rate Demand Notes (cost: $400,000) 400,000
----------
TOTAL SECURITIES (COST: $19,996,281) - 98.09% 20,180,353
OTHER ASSETS AND LIABILITIES, NET - 1.91% 392,284
----------
NET ASSETS - 100.00% $ 20,572,637
==========
<CAPTION>
Atlas National Insured Intermediate
Municipal Fund
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
BONDS - 96.28%
Boulder, Larimer & Weld Counties,
Colorado, Saint Vrain Valley School
District RE1J Refunding, Series A,
MBIA Insured, 5.80% due 12/15/07... $ 500,000 $ 517,415
Chicago, Illinois, Wastewater
Transmission Revenue, MBIA Insured,
7.20% due 11/15/19................. 500,000 549,475
Cook County, Illinois, MBIA Insured,
7.25% due 11/01/07................. 620,000 721,035
Denver, Colorado City and County
School District 1, COP, Colorado
Association of Schools, Series B,
MBIA Insured, 6.75% due 12/01/12... 1,000,000 1,111,700
Denver Metropolitan Major League
Baseball Stadium District,
Colorado, Revenue Refunding and
Improvement, Sales Tax, Series A,
FGIC Insured,
6% due 10/01/11.................... 600,000 638,598
Eagle, Garfield & Routt Counties,
Colorado, School District RE50J,
FGIC Insured, 6.10% due 12/01/03... 400,000 429,816
Florida, State Division Board
Finance Department, General
Services Revenues, Save Our Coast,
Series I, MBIA Insured, 6.50% due
07/01/98........................... 600,000 628,326
Fresno, California, Water System
Revenue, Water Remediation Project,
Series A, FGIC Insured, 7.50% due
06/01/03........................... 600,000 691,026
Johnson County, Kansas, Refunding,
Internal Improvement, Series A, FSA
Insured, 5.60% due 09/01/03........ 500,000 519,085
Los Angeles, California, Wastewater
System Revenue, Series B, MBIA
Insured, 8.80% due 06/01/99........ 200,000 223,546
Massachusetts, State Construction
Loan, Series A, FGIC Insured,
6.90% due 03/01/04................. 30,000 31,959
North Reading, Massachusetts,
Refunding, MBIA Insured, 6.30% due
06/15/01........................... 500,000 535,820
Pawtucket, Rhode Island, FGIC
Insured, 7.75% due 04/15/98........ 750,000 794,490
Pinal County, Arizona, Unified
School District 43, Apache JCT,
Series A, FGIC Insured, 6.80% due
07/01/09........................... 425,000 480,088
<CAPTION>
Atlas National Insured Intermediate
Municipal Fund (continued)
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
Port Houston Authority, Texas,
Harris County Improvement, AMT,
FGIC Insured, 6% due 10/01/06...... $ 600,000 $ 626,568
Puerto Rico Commonwealth Refunding,
Public Improvement, MBIA Insured,
5.50% due 07/01/01................. 200,000 207,426
Rhode Island, Housing and Mortgage
Finance Corp., Multi-Family
Housing, Series A, AMBAC Insured,
5.55% due 07/01/05................. 500,000 504,935
Rhode Island, State Refunding,
Series A, FGIC Insured, 6% due
06/15/02........................... 500,000 528,930
Shawnee County, Kansas, Unified
School District 501, FGIC Insured,
7.30% due 02/01/02................. 500,000 559,520
Tarrant County, Texas, Health
Facilities Development Corp.,
Health System Revenue Refunding,
Harris Methodist Health System,
Series A, AMBAC Insured, 6% due
09/01/04........................... 750,000 791,528
Thornton, Colorado, Water Refunding,
FGIC Insured, 5.65% due 12/01/03... 600,000 628,080
University of Colorado, University
Revenue Refunding, Resh Building
Revolving Fund, MBIA Insured,
6% due 06/01/05.................... 620,000 656,847
Wareham, Massachusetts, School
Project Loan Bonds, AMBAC Insured,
6.60% due 01/15/99................. 110,000 115,579
Westminster, Colorado, Sales & Use
Tax Refunding Revenue, Series A,
FGIC Insured, 6.25% due 12/01/12... 500,000 517,580
Wisconsin, State Health and
Educational Facilities Authority
Revenue, Aurora Medical Group, Inc.
Project, FSA Insured, 5.75% due
11/15/07........................... 500,000 507,895
----------
Total Bonds (cost: $13,325,873) 13,517,267
----------
VARIABLE RATE DEMAND NOTES* - 2.85%
Delaware, State Economic Development
Authority Revenue, Gas Facilities,
Delmarva Power and Light, AMT,
3.80% due 10/01/29................. 100,000 100,000
Flint, Michigan, Hospital Building
Authority Revenue, Hurley Medical
Center, Series B, 3.55% due
07/01/15........................... 100,000 100,000
Halifax County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority
Revenue, Exempt Facilities,
Westmoreland, AMT, 3.85% due
12/01/19........................... 100,000 100,000
Lone Star Airport, Texas, Series A-5
XL684, 3.65% due 12/01/14.......... 100,000 100,000
----------
Total Variable Rate Demand Notes (cost: $400,000) 400,000
----------
TOTAL SECURITIES (COST: $13,725,873) - 99.13% 13,917,267
OTHER ASSETS AND LIABILITIES, NET - .87% 121,974
----------
NET ASSETS - 100.00% $ 14,039,241
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE> 12
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas U.S. Government Intermediate Fund
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
UNITED STATES TREASURY
OBLIGATIONS - 7.95%
Treasury Notes
6.875% due 10/31/96................ $ 271,000 $ 272,228
8.00% due 10/15/96................. 381,000 383,740
----------
Total United States Treasury Notes (cost:
$655,564) 655,968
----------
U.S. GOVERNMENT AGENCIES - 91.05%
Federal Home Loan Bank Corporation
5.24% due 09/17/96................. 165,000 162,527
Federal Home Loan Mortgage
Corporation
5.24% due 07/16/96................. 101,000 100,468
5.28% due 08/05/96................. 101,000 100,173
5.33% due 10/01/96................. 102,000 100,293
Federal National Mortgage
Association 5.29% due 07/19/96..... 375,000 373,843
5.30% due 09/06/96................. 105,000 103,639
5.50% due 01/01/03................. 248,917 234,915
6.00% due 04/01/01 - 12/01/02...... 3,074,472 2,964,957
6.50% due 11/01/02................. 1,950,784 1,914,831
7.00% due 11/01/25................. 1,516,966 1,459,837
----------
Total U.S. Government Agencies (cost: $7,738,821) 7,515,483
----------
TOTAL SECURITIES (COST: $8,394,385) - 99.00% 8,171,451
OTHER ASSETS AND LIABILITIES, NET - 1.00% 82,786
----------
NET ASSETS - 100.00% $ 8,254,237
==========
<CAPTION>
Atlas California Municipal Bond Fund
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
BONDS - 95.60%
Acalanes Unified High School
District, Series C, FGIC Insured,
6.25% due 08/01/14................. $ 500,000 $ 508,060
6.25% due 08/01/15................. 500,000 506,425
Alameda County, COP, BIG Insured,
7.25% due 12/01/08................. 1,000,000 1,119,600
Benicia Unified School District,
Series A, AMBAC Insured, 6.85% due
08/01/16........................... 1,000,000 1,072,040
Big Bear Lake, Water Revenue
Refunding, FGIC Insured, 6.25% due
04/01/12........................... 500,000 517,310
Brea, Public Finance Authority
Revenue Tax Allocation,
Redevelopment Project AB,
Pre-Refunded, Series A, MBIA
Insured, 6.75% due 08/01/22........ 1,590,000 1,766,442
Un-Refunded, Series A, MBIA
Insured, 6.75% due 08/01/22........ 660,000 703,448
Burbank, Glendale, Pasadena Airport
Authority , Airport Revenue
Refunding, AMBAC Insured, 6.40% due
06/01/10........................... 2,000,000 2,079,620
Calleguas Municipal Water District,
COP, System Improvement Project,
AMBAC Insured, 6.25% due
07/01/11........................... 1,680,000 1,827,134
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
Contra Costa Water District, Water
Treatment Revenue Refunding, Series
G, MBIA Insured, 5.90% due
10/01/08........................... $4,600,000 $ 4,745,268
Cotati-Rohnert Park Unified School
District, Series A, FGIC Insured,
6% due 08/01/14.................... 845,000 852,216
6% due 08/01/15.................... 905,000 910,647
East Bay, Municipal Utility District
Water System Revenue Refunding,
FGIC Insured, 4.75% due 06/01/21... 3,000,000 2,552,370
Elk Grove Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured,
6.50% due 12/01/24................. 500,000 547,695
Kern High School District, Series
1990-C, MBIA Insured, 6.25% due
08/01/12........................... 1,200,000 1,295,220
Long Beach Harbor Revenue, AMT,
MBIA Insured, 5.25% due 05/15/25... 2,000,000 1,805,300
Los Angeles Convention and
Exhibition Center Authority
Refunding, COP Refunding, AMBAC
Insured,
7% due 08/15/08.................... 500,000 553,525
Los Angeles Department of Water and
Power, Electric Plant Revenue,
7.10% due 01/15/31................. 500,000 552,360
7.125% due 05/15/30................ 1,875,000 2,058,731
Los Angeles, Harbor Development
Revenue, 7.60% due 10/01/18........ 140,000 166,310
Los Angeles Transportation
Commission, Sales Tax Revenue,
Proposition C, Second Series A,
MBIA Insured,
6.25% due 07/01/13................. 8,980,000 9,264,846
Series B, AMBAC Insured,
6.50% due 07/01/13................. 1,750,000 1,830,972
Los Angeles, Wastewater System
Revenue Refunding,
Series A, MBIA Insured,
5.878% due 06/01/24................ 2,250,000 2,242,215
Series B, AMBAC Insured,
6.25% due 06/01/12................. 2,500,000 2,588,175
Series C, AMBAC Insured,
7% due 06/01/11.................... 1,000,000 1,074,740
Series D, MBIA Insured,
6.70% due 12/01/21................. 3,000,000 3,302,370
MSR Public Power Agency, San Juan
Project Revenue,
Series C, BIG Insured, 6.625% due
07/01/13........................... 1,300,000 1,338,207
Series E, MBIA Insured,
6.75% due 07/01/11................. 3,000,000 3,221,580
Manhattan Beach Unified School
District, Series A, FGIC Insured,
0% due 09/01/16.................... 2,690,000 800,329
Marin Municipal Water District
Water Revenue,
5.55% due 07/01/13................. 750,000 724,395
MBIA Insured, 5.65% due 07/01/23... 2,000,000 1,925,040
Metropolitan Water District of
Southern California Waterworks
Revenue,
6.625% due 07/01/12................ 4,540,000 5,002,217
5.50% due 07/01/19................. 2,500,000 2,354,000
Series G, 6.50% due 03/01/12....... 2,500,000 2,646,675
</TABLE>
11
<PAGE> 13
Statements of Investments in Securities and Net Assets June 30, 1996
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
Mountain View Capital Improvements
Financing Authority Revenue, City
Hall Community Theatre, MBIA
Insured, 6.25% due 08/01/12........ $1,500,000 $ 1,548,360
New Haven Unified School District
Refunding, MBIA Insured,
5.75% due 08/01/11................. 925,000 931,484
Northern California Power Agency
Public Power Revenue Refunding,
Hydroelectric Project 1, Series A,
AMBAC Insured, 7.50% due
07/01/23........................... 50,000 58,235
MBIA Insured, 6.25% due 07/01/12... 1,500,000 1,553,415
Oakland Redevelopment Agency,
Revenue Refunding, Pension
Financing, Series A, FGIC Insured,
7.60% due 08/01/21................. 1,250,000 1,345,838
Orange County, Sanitation Districts,
COP Numbers 1, 2, 3, 5, 6, 7, and
11, Series B, FGIC Insured,
6% due 08/01/16.................... 2,000,000 2,154,600
Oxnard Financing Authority
Wastewater Revenue Refunding, FGIC
Insured, 5.50% due 06/01/14........ 500,000 481,240
Pleasanton Unified School District,
Series F, FGIC Insured,
6.25% due 08/01/14................. 570,000 584,706
6.25% due 08/01/15................. 610,000 623,249
6.25% due 08/01/16................. 650,000 659,978
Puerto Rico Commonwealth Refunding,
MBIA Insured,
6.50% due 07/01/08................. 1,000,000 1,108,420
6.25% due 07/01/12................. 1,000,000 1,078,040
Puerto Rico Public Buildings
Authority Revenue, Series A, AMBAC
Insured, 6.25% due 07/01/10........ 1,000,000 1,080,730
6.25% due 07/01/14................. 1,000,000 1,074,310
Riverside Electric Revenue,
6% due 10/01/15.................... 1,500,000 1,503,180
Sacramento City Financing Authority
Revenue, 6.80% due 11/01/20........ 1,250,000 1,393,400
Sacramento Municipal Utility
District Electric Revenue
Refunding,
Series C, MBIA Insured,
5.75% due 11/15/09................. 1,880,000 1,906,057
Series D, FGIC Insured,
5.25% due 11/15/12................. 2,000,000 1,884,540
Series Z, FGIC Insured,
6.45% due 07/01/10................. 2,500,000 2,621,775
San Bernardino County, COP, Medical
Center Financing Project, MBIA
Insured, 5% due 08/01/28........... 1,500,000 1,308,450
San Bernardino County Transportation
Authority Sales Tax Revenue, Series
A, FGIC Insured, 6% due 03/01/10... 2,500,000 2,564,600
San Bernardino Health Care System
Revenue, Sisters of Charity, Series
A, 7% due 07/01/21................. 3,230,000 3,612,367
San Diego County Regional
Transportation Commission Sales Tax
Revenue, Second Senior Sales Tax,
Series A, FGIC Insured,
5.50% due 04/01/07................. 1,000,000 1,015,330
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
San Diego Public Safety
Communication Project, 6.50% due
07/15/09........................... $1,525,000 $ 1,677,576
San Francisco City and County,
Series 95 A & B, FGIC Insured,
5.50% due 06/15/13................. 1,145,000 1,114,222
Series E, 6.50% due 06/15/11....... 2,220,000 2,302,562
San Francisco City and County
Airports Commission International
Airport Revenue Refunding, Second
Series Issue 1, AMBAC Insured,
6.30% due 05/01/11................. 3,000,000 3,121,890
6.50% due 05/01/13................. 2,000,000 2,101,140
San Francisco City and County Public
Utilities Commission Water Revenue
Refunding, Series A,
6% due 11/01/15.................... 1,000,000 1,003,560
6.50% due 11/01/17................. 1,000,000 1,030,430
San Francisco City and County Sewer
Revenue Refunding, AMBAC Insured,
6% due 10/01/11.................... 2,280,000 2,334,880
5.50% due 10/01/15................. 1,250,000 1,203,913
San Jose Redevelopment Agency Tax
Allocation, Merged Area
Redevelopment Project Refunding,
MBIA Insured,
5% due 08/01/20.................... 2,500,000 2,224,225
San Jose-Santa Clara, Water
Financing Authority Sewer Revenue,
Series A, FGIC Insured, 5.375% due
11/15/20........................... 1,000,000 937,410
Santa Barbara, Revenue COP,
Retirement Services, 5.75% due
08/01/20........................... 2,000,000 1,909,680
Santa Clara Electric Revenue, Series
A, MBIA Insured, 6.25% due
07/01/19........................... 3,750,000 3,807,263
Santa Clara Local Government Finance
Authority Revenue Refunding, BIG
Insured, 7.25% due 02/01/13........ 250,000 272,498
Santa Margarita, Dana Point
Authority Revenue Refunding,
Improvement Districts 3, 3A, 4, and
4A, Series B, MBIA Insured, 7.25%
due 08/01/13....................... 2,000,000 2,345,980
Santa Monica, Malibu Unified School
District, Public School Facilities
Reconstruction Projects A,
6.90% due 08/01/11................. 500,000 535,275
Saugus Unified School District,
Series A, MBIA Insured, 5.65% due
09/01/11........................... 2,035,000 2,014,385
Southern California Public Power
Authority Power Project Revenue
Refunding,
Hydroelectric Hoover
Uprating Project, Series A,
6.625% due 10/01/05................ 600,000 650,016
Palos Verdes Project, Series A,
6.13% due 07/01/97................. 250,000 255,050
Southern California Public Power
Authority Transmission Project
Revenue Refunding, Southern
Transportation System, 5.75% due
07/01/10........................... 2,000,000 2,004,480
Southern California Rapid Transit
District, COP, Workers Compensation
Fund, MBIA Insured, 6% due
07/01/10........................... 1,000,000 1,023,990
State Various Purpose,
6.125% due 10/01/11................ 1,000,000 1,054,330
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE> 14
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
State Department of Water Resources
Central Valley Project Revenue,
Series J-2, 6.125% due 12/01/13.... $2,225,000 $ 2,252,501
Series J-3, 5.50% due 12/01/23..... 3,000,000 2,784,090
Series O, 5% due 12/01/15.......... 2,000,000 1,797,700
Series O, 4.75% due 12/01/25....... 4,000,000 3,289,120
State Educational Facilities
Authority Revenue Refunding,
Pepperdine University, MBIA
Insured,
6.10% due 03/15/14................. 2,595,000 2,651,934
Santa Clara University, MBIA
Insured, 5.75% due 09/01/18........ 3,255,000 3,202,627
University of Southern California
Project, 5.65% due 10/01/08........ 1,000,000 1,017,930
State Health Facilities Financing
Authority Revenue Refunding,
Adventist Health System West,
Series B, MBIA Insured, 6.40% due
03/01/02........................... 1,000,000 1,083,220
Catholic Healthcare West, Series A,
AMBAC Insured, 7% due 07/01/20..... 800,000 872,760
Sutter Health Systems, Series A,
AMBAC-TCRS Insured, 6.70% due
01/01/13........................... 1,000,000 1,042,440
State Housing Finance Agency Revenue
Home Mortgage,
Series C, AMT, MBIA Insured,
5.75% due 08/01/12................. 1,450,000 1,401,222
Series H, AMT, FHA/VA Insured,
6.15% due 08/01/16................. 2,020,000 2,006,062
State Maritime Infrastructure
Authority Airport Revenue, San
Diego Unified Port District
Airport, AMT, AMBAC Insured,
5% due 11/01/20.................... 8,000,000 7,028,560
State Pollution Control Financing
Authority, Pollution Control
Revenue, Pacific Gas & Electric
Co., Series B, AMT, MBIA Insured,
5.85% due 12/01/23................. 2,000,000 1,962,400
Southern California Edison, AMT,
MBIA Insured, 6.90% due 12/01/17... 1,000,000 1,068,560
Truckee, Donner Public Utility
District, COP, Water System
Improvement Project, MBIA Insured,
6.75% due 11/15/21................. 1,000,000 1,068,050
Turlock Irrigation District Revenue
Refunding, Series A, MBIA Insured,
6% due 01/01/10.................... 1,000,000 1,050,140
6% due 01/01/11.................... 1,000,000 1,048,510
Vallejo Revenue Water Improvement
Project, Series B, FGIC Insured,
6.50% due 11/01/14................. 4,000,000 4,436,480
Watsonville Water Revenue Refunding,
Series A, MBIA Insured,
6% due 05/15/16.................... 1,915,000 1,922,373
----------
Total Bonds (cost: $168,108,596) 174,459,220
----------
VARIABLE RATE DEMAND NOTES* - 2.85%
Irvine, Assessment District 89-10,
3.30% due 09/02/15................. 100,000 100,000
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
Los Angeles Community Redevelopment
Agency, COP, Willowbrook Project,
3.15% due 11/01/15................. $ 300,000 $ 300,000
Los Angeles Regional Airports
Improvement Corp. Lease Revenue,
American Airlines - LAX,
Series F, 3.65% due 12/01/24....... 400,000 400,000
Series G, 3.65% due 12/01/24....... 1,000,000 1,000,000
Los Angeles County, Regional
Airports Improvement Corp.,
Terminal Facilities Completion
Revenue, Los Angeles International
Airport, AMT,
3.75% due 12/01/25................. 600,000 600,000
Newport Beach Revenue Hoag Memorial
Hospital, 3.55% due 10/01/22....... 1,100,000 1,100,000
State Health Facilities Financing
Authority Revenue Refunding,
Catholic Healthcare West, Series A,
MBIA Insured,
3% due 07/01/09.................... 700,000 700,000
State Pollution Control Financing
Authority, Resource Recovery
Revenue Refunding,
Burney Forest Products
Project, Series A, AMT,
3.65% due 09/01/20................. 100,000 100,000
Delano 3 Project, Series 91, AMT,
3.75% due 08/01/19................. 400,000 400,000
Honey Lake Power Co. Project, AMT,
3.75% due 09/01/18................. 100,000 100,000
Ultrapower-Malaga, Series A, AMT,
3.80% due 04/01/17................. 300,000 300,000
Ultrapower-Rocklin, Series A, AMT,
3.80% due 06/01/17................. 100,000 100,000
----------
Total Variable Rate Demand Notes (cost:
$5,200,000) 5,200,000
----------
TOTAL SECURITIES (COST: $173,308,596) - 98.45% 179,659,220
OTHER ASSETS AND LIABILITIES, NET - 1.55% 2,834,972
----------
NET ASSETS - 100.00% $182,494,192
==========
<CAPTION>
Atlas National Municipal Bond Fund
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
BONDS - 95.76%
Adams County, Colorado, School
District 12, Series A, MBIA
Insured,
6.75% due 12/15/07................. $1,065,000 $ 1,204,217
Alabama State Docks Department,
Docks Facilities Revenue, AMT, MBIA
Insured, 6.10% due 10/01/13........ 1,000,000 1,013,680
Alexandria, Louisiana, Utilities
Revenue, FGIC Insured, 8.20% due
05/01/07........................... 50,000 53,320
Anchorage, Alaska, Electric Utility
Revenue Refunding, Senior Lien,
MBIA Insured, 8% due 12/01/10...... 985,000 1,220,110
</TABLE>
13
<PAGE> 15
Statements of Investments in Securities and Net Assets June 30, 1996
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
Austin, Texas, Airport System
Revenue, Prior Lien, Series A, AMT,
MBIA Insured, 6.50% due 11/15/04... $1,000,000 $ 1,084,510
Boulder, Larimer & Weld Counties,
Colorado, Saint Vrain Valley School
District RE1J Refunding, Series A,
MBIA Insured, 5.80% due 12/15/07... 1,500,000 1,552,245
Chicago, Illinois, Metropolitan
Water Reclamation District, Greater
Chicago Capital Improvement,
7.25% due 12/01/12................. 1,500,000 1,769,355
Chicago, Illinois, Park District
Aquarium & Museum, Series B,
6.50% due 11/15/13................. 2,500,000 2,616,975
Chicago, Illinois, Public Building
Commission Mortgage Revenue, Board
of Education, Series A, MBIA
Insured, 7.125% due 01/01/15....... 125,000 133,970
Cleveland, Ohio, Waterworks Revenue
First Mortgage Refunding, Series
F-92B, AMBAC Insured, 6.25% due
01/01/16........................... 1,000,000 1,025,850
Colorado, Housing Finance Authority,
Single Family Program, Senior
Series A-1 AMT, 7.40% due
11/01/27........................... 1,000,000 1,078,890
Colorado Springs, Colorado,
Utilities Revenue Refunding, Series
A, 6.50% due 11/15/15.............. 2,000,000 2,113,620
Cumberland County, New Jersey,
Improvement Authority, Solid Waste
Disposal Revenue, FGIC Insured,
6% due 01/01/01.................... 500,000 524,715
Denver, Colorado City & County
Refunding Water, 5% due 10/01/10... 1,500,000 1,437,855
Georgia, Municipal Electric
Authority Power Revenue, Series O,
8.125% due 01/01/17................ 50,000 53,557
Illinois Health Facilities Authority
Revenue Refunding, Sherman Hospital
Project, MBIA Insured,
6.75% due 08/01/11................. 1,000,000 1,073,200
Indiana State Office Building
Commission, Capital Complex
Revenue, Senate Avenue Parking,
Series A, MBIA Insured,
7.25% due 07/01/12................. 50,000 55,419
Jacksonville, Florida, Electric
Authority Revenue Refunding, Saint
John's River, Issue 2, Series 5,
6.50% due 10/01/14................. 500,000 523,400
Kansas City, Kansas, Utility System
Revenue Refunding and Improvement,
FGIC Insured, 6.375% due
09/01/23........................... 1,500,000 1,565,430
Kern, California High School
District, Series 1990-C Election,
MBIA Insured, 6.25% due 08/01/10... 545,000 589,706
Lakota, Ohio, Local School District,
AMBAC Insured, 7% due 12/01/09..... 1,740,000 2,003,332
Lansing, Illinois, Refunding, FGIC
Insured, 8.25% due 12/01/07........ 25,000 26,976
Maine State Housing Authority
Mortgage Purchase, Series A-1, AMT,
AMBAC Insured, 6.40% due
11/15/14........................... 1,400,000 1,407,392
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
Maricopa County, Arizona, Unified
School District 69, Paradise Valley
Refunding, MBIA Insured, 6.35% due
07/01/10........................... $ 600,000 $ 652,428
Massachusetts State Health and
Educational Facilities Authority
Revenue, Northeastern University,
Series E, MBIA Insured, 6.55% due
10/01/22........................... 500,000 530,330
Metropolitan Pier & Exposition
Authority, Illinois, Dedicated
State Tax Revenue, McCormick Place
Expansion Project, Series A, 7.25%
due 06/15/05....................... 250,000 281,382
Michigan State University Revenue,
Series A, 6.125% due 08/15/08...... 500,000 518,305
Mississippi Higher Education
Assistance Corp. Student Loan
Revenue, Series C, AMT, 6.05% due
09/01/07........................... 1,000,000 1,018,600
Nevada Housing Division, Single
Family Mortgage, Series C, AMT,
FHA/VA Insured, 6.60% due
04/01/14........................... 1,000,000 1,007,180
New York City, New York, Municipal
Water Finance Authority, Water &
Sewer System Revenue, Series B,
FGIC Insured, 7.625% due
06/15/17........................... 125,000 134,915
New York State Dormitory Authority
Revenue, Pooled Capital Program,
FGIC Insured, 7.80% due 12/01/05... 165,000 178,334
New York State Housing Finance
Agency Revenue, Multi-Family
Housing, Second Mortgage, Series B,
AMT, SONYMA Insured, 6.10% due
08/15/16........................... 1,000,000 993,040
North Central, Texas, Health
Facility Development Corp. Revenue
Refunding, Baylor Health Care
System,
6.25% due 05/15/10................. 1,000,000 1,057,110
Northern California Power Agency,
Public Power Revenue Refunding,
Hydroelectric Project 1, Series A,
MBIA Insured,
6.25% due 07/01/12................. 750,000 776,707
Northumberland County, Pennsylvania,
Authority, Commonwealth Lease
Revenue, Correctional Facility,
MBIA Insured, 6.25% due 10/15/09... 750,000 782,460
Puerto Rico Commonwealth, Refunding,
MBIA Insured, 6.25% due 07/01/12... 2,000,000 2,156,080
Red River Authority, Texas,
Pollution Control Revenue, Hoechst
Celanese Corp. Project, AMT,
6.875% due 04/01/17................ 1,500,000 1,588,860
Sacramento, California, Municipal
Utility District Electric Revenue
Refunding, Series Z, FGIC Insured,
6.45% due 07/01/10................. 600,000 629,226
Salt River Project, Arizona,
Agriculture Improvement and Power
District, Electric System Revenue,
Series A,
7.50% due 01/01/27................. 50,000 51,943
Springfield, Illinois, General
Obligation, 6.30% due 12/01/13..... 100,000 101,962
Superior, Wisconsin, Limited
Obligation Revenue Refunding,
Midwest Energy Resources, Series E,
FGIC Insured,
6.90% due 08/01/21................. 500,000 570,750
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE> 16
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
Tacoma, Washington, Electric System
Revenue, 7.50% due 01/01/12........ $ 100,000 $ 109,026
Tallassee, Alabama, Industrial
Development Board Revenue
Refunding, Dow United Technologies
Corp., Series B, 6.10% due
08/01/14........................... 1,000,000 1,003,420
Tarrant County, Texas, Health
Facilities Development Corp. Health
System Revenue Refunding, Harris
Methodist Health System, Series A,
AMBAC Insured, 6% due 09/01/04..... 715,000 754,590
Texas Health Facilities Development
Corp. Hospital Revenue, Cook-Fort
Worth Children's Center Refunding,
FGIC Insured, 6.25% due 12/01/12... 1,000,000 1,034,990
University of Maryland, System
Auxiliary Facility and Tuition
Revenue, Series A, 6.30% due
02/01/10........................... 500,000 530,715
University of Nevada, University
Revenue Refunding, Community
College System, AMBAC Insured,
5.50% due 07/01/11................. 500,000 491,980
University of Texas, Permanent
University Fund Refunding, 6.50%
due 07/01/11....................... 500,000 546,030
Utah State Board of Regents Student
Loan Revenue, Series N, AMT, AMBAC
Insured, 5.90% due 11/01/07........ 1,000,000 1,013,950
Vallejo, California, Revenue, Water
Improvement Project, Series B, FGIC
Insured, 6.50% due 11/01/14........ 1,000,000 1,109,120
Washington State Public Power Supply
System Refunding Revenue,
Nuclear Project 1 Revenue
Pre-Refunded, Series A, 7.50% due
07/01/15........................... 155,000 170,612
Nuclear Project 1 Revenue
Un-Refunded, Series A, 7.50% due
07/01/15........................... 105,000 113,200
Nuclear Project 2 Revenue
Refunding, Series A, 7.25% due
07/01/06........................... 500,000 549,160
Nuclear Project 2 Revenue
Refunding, Series A, 7.375% due
07/01/12........................... 1,000,000 1,109,030
Nuclear Project 2 Revenue
Refunding, Series B, 7% due
07/01/12........................... 140,000 148,106
Nuclear Project 3 Revenue
Refunding, Series B, 7.20% due
07/01/99........................... 250,000 265,830
Wayne Charter County, Michigan,
Airport Revenue Sub. Lien, Detroit
Metro Airport, Series A, MBIA
Insured,
6.50% due 12/01/11................. 500,000 548,640
West Virginia School Building
Authority Revenue, Series A, MBIA
Insured,
7.25% due 07/01/15................. 50,000 55,420
Westminster, Colorado, Sales & Use
Tax Refunding Revenue, Series A,
FGIC Insured, 6.25% due 12/01/12... 1,500,000 1,552,740
Wisconsin State Health and
Educational Facilities Authority
Revenue, Aurora Medical Group, Inc.
Project, FSA Insured, 6% due
11/15/10........................... 1,000,000 1,019,250
----------
Total Bonds (cost: $47,520,648) 49,283,145
----------
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
VARIABLE RATE DEMAND NOTES* - 4.66%
Campbell County, Virginia,
Industrial Development Authority
Revenue, Exempt Facility, Hadson
Power 12, Series A, AMT, 3.90% due
04/01/15........................... $ 100,000 $ 100,000
Deleware State Economic Development
Authority Revenue, Gas Facilities
Refunding, Delmarva Power & Light
Co. Project, AMT,
3.80% due 10/01/17................. 200,000 200,000
3.80% due 10/01/29................. 300,000 300,000
Flint, Michigan, Hospital Building
Authority Revenue, Hurley Medical
Center, Series B, 3.55% due
07/01/15........................... 300,000 300,000
Green River, Wyoming, Revenue Rhone-
Poulenc Wyoming LP, AMT,
3.90% due 10/01/18................. 100,000 100,000
Halifax County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority
Revenue, Exempt Facilities,
Westmoreland, AMT, 3.85% due
12/01/19........................... 300,000 300,000
Los Angeles, California, Regional
Airports Improvement Corp. Lease
Revenue, Sublease Los Angeles
International Airport-LAX 2, 3.65%
due 12/01/25....................... 300,000 300,000
Phenix City, Alabama, Industrial
Development Board Environmental
Improvement Revenue,
Mead Coated Board Project,
Series A, AMT, 3.75% due
06/01/28........................... 100,000 100,000
Series A, AMT, 3.75% due
03/01/31........................... 500,000 500,000
Southampton County, Virginia,
Industrial Development Authority
Revenue, Exempt Facility, Hadson
Power 11, Series A, AMT, 3.90% due
04/01/15........................... 200,000 200,000
----------
Total Variable Rate Demand Notes (cost:
$2,400,000) 2,400,000
----------
TOTAL SECURITIES (COST: $49,920,648) - 100.42% 51,683,145
OTHER ASSETS AND LIABILITIES, NET - (.42)% (216,079)
----------
NET ASSETS - 100.00% $ 51,467,066
==========
<CAPTION>
Atlas U.S. Government and Mortgage Securities Fund
- --------------------------------------------------------------
face amount
----------
value
(note 1)
----------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES - 99.09%
Federal Home Loan Mortgage
Corporation
7.00% due 2023 - 2024.............. $10,615,193 $ 10,248,135
7.50% due 2023 - 2024.............. 21,277,388 21,082,397
</TABLE>
15
<PAGE> 17
Statements of Investments in Securities and Net Assets June 30, 1996
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas U.S. Government and
Mortgage Securities Fund (continued)
- --------------------------------------------------------------
face amount
---------- value
(note 1)
----------
<S> <C> <C>
8.00% due 2020 - 2024.............. $15,322,359 $ 15,501,527
8.50% due 2017 - 2022.............. 7,972,821 8,217,685
9.00% due 2017 - 2024.............. 8,270,392 8,654,162
9.50% due 2016 - 2021.............. 1,674,725 1,787,119
10.00% due 2015 - 2020............. 174,214 187,475
10.50% due 2018 - 2020............. 186,140 205,058
Federal National Mortgage
Association 6.50% due
2023 - 2026........................ 2,978,816 2,787,199
7.00% due 2023 -2026............... 46,298,744 44,578,473
7.50% due 2024 - 2025.............. 34,644,909 34,203,533
8.00% due 1922 - 2026.............. 59,553,100 60,074,417
8.50% due 2017- 2025............... 12,229,261 12,568,327
9.00% due 2021- 2025............... 9,180,486 9,590,573
9.50% due 2020..................... 71,334 76,183
Government National Mortgage
Association
7.50% due 2022 - 2024.............. 8,348,361 8,274,605
8.00% due 2023 - 2025.............. 2,924,902 2,957,421
8.50% due 2016 - 2020.............. 122,014 126,665
----------
Total U.S. Government Agencies (cost:
$242,932,987) 241,120,954
----------
SHORT-TERM INVESTMENTS - 14.27%
5.74% FNMA Floating Collateralized
Mortgage Obligation due 1998....... 313,172 314,637
5.84% FNMA Floating Collateralized
Mortgage Obligation due 1998....... 378,753 380,764
5.85% FHLMC Floating Collateralized
Mortgage Obligation due 1997....... 547,214 546,530
5.85% FHLMC Floating Collateralized
Mortgage Obligation due 1997....... 3,126,086 3,122,178
5.95% FHLMC Floating Collateralized
Mortgage Obligation due 1999....... 563,068 567,466
6.04% FNMA Floating Collateralized
Mortgage Obligation due 1999....... 606,057 609,845
Repurchase Agreement dated June 13,
1996 with Smith Barney, effective
yield of 5.38%, due July 15, 1996
with respect to $11,481,414 FHLMCs,
6.59%, May 1, 2025, with a value of
$11,353,154 (g).................... 11,000,000 11,051,920
Repurchase Agreement dated June 13,
1996 with Goldman Sachs & Co.,
effective yield of 5.40%, due July
15, 1996 with respect to $7,181,886
FNMAs, 8%, May 1, 2026 with a value
of $7,261,286 (g).................. 7,000,000 7,033,164
Triparty Repurchase Agreement dated
June 28, 1996 with Lehman Brothers,
effective yield of 5.48%, due July
1, 1996 with respect to $10,810,000
U.S. Treasury Notes, 8.88%,
November 15, 1997, with a value of
$11,323,382........................ 11,100,000 11,104,995
----------
Total Short-Term Investments (cost: $34,730,305) 34,731,499
----------
TOTAL SECURITIES (COST: $277,663,292) - 113.36% 275,852,453
OTHER ASSETS AND LIABILITIES, NET - (13.36)% (32,502,405)
----------
NET ASSETS - 100.00% $243,350,048
==========
<CAPTION>
Atlas Strategic Income Fund
- --------------------------------------------------------------
face amount
or units
(h)
----------
value
(note 1)
----------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS - 1.51%
Multi-Family - 1.51%
Mortgage Capital Funding, Inc.,
Commercial Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl.
G, 7.15% due 06/15/06 (g).......... $ 100,000 $ 74,844
----------
Total Mortgage-Backed Obligations (cost: $74,547) 74,844
----------
U.S. GOVERNMENT OBLIGATIONS - 34.59%
U.S. Treasury Notes:
6.375% due 05/15/99................ 1,713,000 1,717,282
----------
Total U.S. Government Obligations (cost:
$1,705,248) 1,717,282
----------
FOREIGN GOVERNMENT OBLIGATIONS - 29.10%
Australia - 3.18%
Australia (Commonwealth of) Bonds,
9% due 09/15/04 (AUD).............. 40,000 31,828
Treasury Corp. of Victoria Gtd.
Bonds, 12.50% due 10/15/03 (AUD)... 135,000 126,022
Brazil - 2.03%
Brazil (Federal Republic of)
Capitalization Bonds,
4.50% due 04/15/14 (e)............. 163,059 100,766
Bulgaria - 2.49%
Bulgaria (Republic of)
FLIRB Bearer Series A,
2% due 07/28/12 (e)................ 375,000 123,750
Canada - 3.86%
Canada (Government of) Bonds,
10.25% due 12/01/98 (CAD).......... 140,000 111,610
9% due 12/01/04 (CAD).............. 100,000 79,944
Ecuador - 2.86%
Ecuador (Republic of) Discount
Bonds,
6.063% due 02/28/25 (c)............ 250,000 141,875
Germany - 1.12%
Germany (Republic of) Bonds Series
94, 7.50% due 11/11/04 (DEM)....... 35,000 24,498
LKB-Global Baden Wuerttembergische
L-Finance NV,
6% due 01/25/06 (DEM).............. 50,000 31,323
Great Britain - 2.17%
United Kingdom Treasury Notes,
12.50% due 11/21/05 (GBP).......... 55,000 107,758
Italy - 1.67%
Italy (Republic of) Treasury Bonds,
Buoni del Tesoro Poliennali,
10.50% due 04/01/00 (ITL).......... 120,000,000 82,800
Japan - .15%
Japan Government Bonds Series 31B,
3.50% due 03/21/16 (JPY)........... 840,000 7,357
New Zealand - 1.53%
New Zealand (Government of) Bonds,
9% due 11/15/96 (NZD).............. 90,000 61,659
10% due 03/15/02 (NZD)............. 20,000 14,366
Panama - .87%
Panama (Republic of) Debentures,
6.629% due 05/10/02 (c)............ 46,155 43,386
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE> 18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount
or units
(h)
---------- value
(note 1)
----------
<S> <C> <C>
Poland - 1.38%
Poland (Republic of) Treasury
Bills, Zero Coupon, 20.3795%
due 11/06/96 (f) (PLZ)............. $ 200,000 $ 68,297
Spain - 2.29%
Spain (Kingdom of) Debentures,
Bonos y Obligacion del Estado,
10.10% due 02/28/01 (ESP).......... 13,600,000 113,805
Sweden - 3.50%
Sweden (Kingdom of) Bonds,
Series 1030, 13% due 06/15/01
(SEK).............................. 300,000 55,282
Series 1033, 10.25% due 05/05/03
(SEK).............................. 700,000 118,221
----------
Total Foreign Government Obligations (cost:
$1,429,610) 1,444,547
----------
CORPORATE BONDS AND NOTES - 33.78%
Agriculture - 1.29%
Viridian, Inc., 10.50% Debentures
due 03/31/14....................... 60,000 63,900
Apparel & Textiles - 2.05%
Collins & Aikman Corp.,
11.50% Sr. Sub. Notes due
04/15/06........................... 50,000 50,875
PT Polysindo International Finance,
11.375% Sr. Sec. Debentures
due 06/15/06 (IDR)................. 50,000 50,875
Broadcast, Radio & TV - 2.10%
SFX Broadcasting, Inc., 10.75%
Sr. Sub. Notes due 05/15/06 (a).... 60,000 59,850
Young Broadcasting Corp., 9%
Sr. Sub. Notes due 01/15/06 (a).... 50,000 44,625
Building Materials - 1.04%
Triangle Pacific Corp., 10.50%
Sr. Notes due 08/01/03............. 50,000 51,500
Cable Television - .98%
Cablevision Systems Corp., 10.50%
Sr. Sub. Debentures due 05/15/16... 50,000 48,750
Consumer Products - 1.06%
TAG Heuer International SA, 12% Sr.
Sub. Notes due 12/15/05 (a)........ 50,000 52,375
Drugs & Health Care - 1.13%
Multicare Companies, Inc. (The),
12.50% Sr. Sub. Notes due
07/01/02........................... 50,000 55,875
Electrical Utilities - 1.35%
New Zealand Electric Corp., 10%
Debentures due 10/15/01 (NZD)...... 95,000 66,999
Food & Beverages - 3.05%
Doane Products Co., 10.625%
Sr. Notes due 03/01/06............. 50,000 50,250
FoodBrands America, Inc.,
10.75% Sr. Sub. Notes due
05/15/06........................... 100,000 101,000
Hotel/Gaming - 3.19%
Showboat Marina Casino
Partnership/Showboat Marina Finance
Corp., 13.50% First Mortgage
Notes due 03/15/03 (a)............. 100,000 108,000
Trump Atlantic City Association,
11.25% First Mtg. Notes due
05/01/06........................... 50,000 50,500
Insurance - .59%
American International Group, Inc.,
11.70% Unsecured Unsub.
Bonds due 12/04/01 (ITL)........... 40,000,000 29,240
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount
or units
(h)
----------
value
(note 1)
----------
<S> <C> <C>
Metals Industries - 1.08%
Kaiser Aluminum & Chemical Corp.,
12.75% Sr. Sub. Notes due
02/01/03........................... $ 50,000 $ 53,625
Paper & Forest Products - 3.90%
Repap Wisconsin, Inc., 9.25%
Sr. Sec. Notes due 02/01/02........ 100,000 94,750
Riverwood International Corp.,
10.875% Sr. Sub. Notes due
04/01/08........................... 100,000 99,000
Restaurants - .99%
Apple South, Inc., 9.75%
Sr. Notes due 06/01/06............. 50,000 49,125
Supermarkets - .96%
Ralphs Grocery Co., 10.45%
Sr. Notes due 06/15/04 (a)......... 50,000 47,688
Telecommunications - 7.98%
Allbritton Communications Co.,
11.50% Sr. Sub. Debentures due
08/15/04........................... 75,000 76,688
American Communications Services,
Inc., 0%/12.75% Sr. Discount
Notes due 11/01/05 (a)(d).......... 150,000 84,000
Occidente Y Caribe Celular, 0%/14%
Sr. Discount Notes with 4
Warrants/Unit due 03/15/04 (a)(d).. 100,000 51,000
Petersburg Long Distance, Inc.,
0%/14% Sr. Discount Notes with 4
Warrants/Unit due 06/01/04 (d)(g).. 50,000 38,750
PriCellular Wireless Corp.,
0%/14% Sr. Sub. Discount Notes
due 11/15/01 (a)(d)................ 50,000 45,500
Western Wireless Corp.,
10.50% Sr. Sub. Notes due
06/01/06........................... 100,000 100,125
Gas Utilities - 1.04%
AmeriGas Partners, L.P.,
10.125% Sr. Notes due
04/15/07 (a)....................... 50,000 51,750
----------
Total Corporate Bonds and Notes (cost:
$1,676,908) 1,676,615
----------
STRUCTURED INSTRUMENTS - 2.99%
ING Barings Securities, Inc., Zero
Coupon Chilean Peso Linked Notes,
11.813% due 06/23/97 (f)........... 65,000 57,633
ING Barings Securities, Inc., Zero
Coupon Czech Crown Linked Notes,
11.911% due 06/26/97 (f)........... 30,000 26,800
Salomon Brothers, Inc., Zero Coupon
Brazilian Credit Linked Notes,
9.663% due 06/03/97 (f)............ 70,000 64,145
----------
Total Structured Instruments (cost: $149,016) 148,578
----------
TOTAL INVESTMENTS (COST: $5,035,329) - 101.97% 5,061,866
OTHER ASSETS AND LIABILITIES,
NET - (1.97)% (97,879)
----------
NET ASSETS - 100.00% $ 4,963,987
==========
</TABLE>
17
<PAGE> 19
Statements of Investments in Securities and Net Assets June 30, 1996
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund
- --------------------------------------------------------------
shares or
face amount
---------- value
(note 1)
----------
<S> <C> <C>
COMMON STOCKS - 30.86%
Air Travel - 1.40%
AMR Corp. (b)...................... 1,900 $ 172,900
Delta Air Lines, Inc............... 2,028 168,324
Automotive - .66%
Ford Motor Co...................... 5,000 161,875
Banks - 10.93%
Banc One Corp...................... 5,000 170,000
BankAmerica Corp................... 3,500 265,125
BayBanks, Inc...................... 2,000 215,500
Capital One Financial Corp......... 5,000 142,500
Chase Manhattan Corp............... 4,160 293,800
Citicorp........................... 2,000 165,250
First Chicago NBD Corp............. 4,000 156,500
First Union Corp................... 6,875 418,516
Fleet Financial Group, Inc......... 4,000 174,000
Keycorp............................ 4,000 155,000
National City Corp................. 3,000 105,375
PNC Bank Corp...................... 4,000 119,000
Signet Banking Corp................ 5,000 116,250
Summit Bancorp..................... 5,000 175,625
Chemicals & Allied Products - .92%
Dexter Corp........................ 5,000 148,750
Dow Chemical Co.................... 1,000 76,000
Drugs and Health Care - 1.48%
American Home Products Corp........ 3,000 180,375
Bristol-Myers Squibb Co............ 2,000 180,000
Electrical Utilities - 2.20%
American Electric Power Co......... 1,500 63,937
Centerior Energy Corp.............. 3,000 22,125
Entergy Corp....................... 3,000 85,125
Florida Progress Corp.............. 2,000 69,500
Potomac Electric Power Co.......... 4,000 106,000
Public Service Company of
Colorado........................... 1,700 62,475
Texas Utilities Co................. 3,000 128,250
Electronics - .55%
Tektronix, Inc..................... 3,000 134,250
Industrial Manufacturing - .57%
Minnesota Mining & Manufacturing
Co. ............................... 2,000 138,000
Insurance - 3.83%
Allstate Corp...................... 2,781 126,883
American General Corp. ............ 5,000 181,875
American States Financial Corp.
(b)................................ 8,000 172,000
GCR Holdings, Ltd. (b)............. 7,000 185,500
IPC Holdings Ltd................... 6,000 120,750
Reliance Group Holdings, Inc....... 20,000 150,000
Machine Tools & Equipment - .58%
Snap-On, Inc....................... 3,000 142,125
Oil & Gas - 4.35%
Mobil Corp......................... 1,000 112,125
NorAm Energy....................... 11,000 119,625
Occidental Petroleum Corp.......... 9,000 222,750
Pacific Enterprises................ 5,000 148,125
Phillips Petroleum Co.............. 4,000 167,500
Royal Dutch Petroleum Co. ADR...... 700 107,625
Tenneco, Inc....................... 2,000 102,250
Texaco, Inc........................ 1,000 83,875
Paper & Forest Products - .93%
Union Camp Corp.................... 2,500 121,875
Weyerhaeuser Co.................... 2,500 106,250
Retail Trade - .60%
Sears Roebuck & Co................. 3,000 145,875
<CAPTION>
Atlas Balanced Fund (continued)
- --------------------------------------------------------------
shares or
face amount
----------
value
(note 1)
----------
<S> <C> <C>
Telecommunications - .76%
BCE, Inc........................... 3,000 $ 118,500
GTE Corp........................... 1,500 67,125
Telephone Utilities - .54%
Portugal Telecom S.A. ADR.......... 5,000 131,250
Transportation - .56%
Railtrack Group ADS PLC (a)........ 4,000 138,000
----------
Total Common Stocks (cost: $6,163,023) 7,542,210
----------
CONVERTIBLE PREFERRED STOCKS - 17.82%
Banks - .81%
BCP International Bank, Ltd.,
Series A........................... 4,000 199,000
Broadcast, Radio & TV - .91%
Merrill Lynch-Cox Communications
STRYPES............................ 10,000 221,250
Electrical Equipment - .43%
Westinghouse Electric Corp.,
Series C (a)....................... 6,000 104,250
Electronics - 1.01%
Elsag Bailey Process
Automation N.V. (a)................ 5,000 246,250
Environmental Management - .91%
Browning-Ferris Industries, Inc.
ACES............................... 7,000 222,250
Financial Services - 1.64%
American Express Co. DECS.......... 3,000 196,875
MCN Corp. PRIDES................... 8,000 204,000
Gas Utilities - 1.06%
Enron Corp. ACES................... 10,000 258,750
Insurance - 1.73%
Allstate Corp...................... 4,500 177,750
Salomon, Inc. DECS................. 9,000 245,250
Industrials - 1.60%
Continental Air Finance Trust...... 3,000 219,375
Owens-Corning Capital LLC MIPS
(a)................................ 3,000 170,625
Metals Mining - .47%
Reynolds Metals Co. PRIDES......... 2,500 115,937
Oil & Gas - 4.08%
Atlantic Richfield Co.............. 10,000 243,750
NorAm Energy....................... 5,000 271,250
Santa Fe Energy Resources, Inc.,
Series A........................... 20,000 220,000
Valero Energy Corp................. 5,000 262,500
Paper & Forest Products - 1.34%
James River Corp., Series P DECS... 13,000 328,250
Telecommunications - 1.83%
Compania de Inversiones en
Telecommunicaciones SA PRIDES (a).. 3,000 174,375
U.S. West, Inc..................... 10,000 273,750
----------
Total Convertible Preferred Stocks (cost:
$3,879,515) 4,355,437
----------
CONVERTIBLE BONDS - 5.62%
Banks - .90%
Banco de Galicia y Buenos Aires
ADS, 7% due 08/01/02............... $ 200,000 220,000
Drugs and Health Care - .50%
ICN Pharmaceuticals, Inc.,
8.50% due 11/15/99................. $ 100,000 122,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE> 20
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
- --------------------------------------------------------------
shares or
face amount
---------- value
(note 1)
----------
<S> <C> <C>
Industrials - 1.91%
ADT Operations, Inc.,
0% due 07/06/10.................... $ 500,000 $ 273,125
Alza Corp., 5% due 05/01/06........ $ 200,000 193,500
Insurance - .77%
Mutual Risk Management,
0% due 10/30/15 (a)................ $ 500,000 189,375
Metals Mining - 1.54%
Inco, Ltd., 5.75% due 07/01/04..... $ 300,000 376,125
----------
Total Convertible Bonds (cost: $1,187,599) 1,374,125
----------
CORPORATE BONDS - 14.35%
Automotive - .38%
General Motors Acceptance Corp.,
5.50% due 12/15/01................. $ 100,000 92,707
Banks - 5.02%
Barnett Banks, Inc.,
8.50% due 03/01/99................. $ 325,000 339,716
Chase Manhattan Corp.,
6.625% due 08/01/03................ $ 300,000 301,150
First Chicago NBD Bancorp.,
7.25% due 08/15/04................. $ 590,000 586,233
Diversified Media - .34%
Time Warner, Inc.,
7.95% due 02/01/00................. $ 80,000 81,914
Drugs and Health Care - .98%
R.P. Scherer Corp.,
6.75% due 02/01/04................. $ 250,000 238,716
Financial Services - 1.02%
Paine Webber Group, Inc.,
7% due 03/01/00.................... $ 250,000 249,676
Food Processing - 1.01%
ConAgra, Inc.,
7.40% due 09/15/04................. $ 250,000 246,208
Foreign Government - .73%
Treasury Corp. of Victoria,
9% due 09/04/02.................... $ 228,000 178,910
Gas Utilities - 1.31%
Enron Corp.,
9.875% due 06/15/03................ $ 125,000 142,860
Enron Corp.,
7.625% due 09/10/04................ $ 175,000 177,698
Hotel/Gaming - .49%
Circus Circus Enterprises,
6.75% due 07/15/03................. $ 125,000 120,960
Oil and Gas - 1.38%
Coastal Corp.,
9.75% due 08/01/03................. $ 300,000 338,133
Paper & Forest Products - 1.08%
Fletcher Challenge, Ltd.,
7.75% due 06/20/06................. $ 200,000 202,617
Florida Coast Paper, LLC,
12.75% due 06/01/03 (g)............ $ 60,000 62,550
Telecommunications - .61%
Tele-Communications, Inc.,
7.25% due 08/01/05................. $ 160,000 148,049
----------
Total Corporate Bonds (cost: $3,561,573) 3,508,097
----------
UNITED STATES TREASURY NOTES - 13.39%
7.50% due 12/31/96................. $ 940,000 949,109
<CAPTION>
Atlas Balanced Fund (continued)
- --------------------------------------------------------------
shares or
face amount
----------
value
(note 1)
----------
<S> <C> <C>
5.625% due 10/31/97................ $ 350,000 $ 348,579
5.50% due 11/15/98................. $ 300,000 295,266
Strip, 0% due 08/15/16............. $7,000,000 1,681,330
----------
Total United States Treasury Notes (cost:
$3,288,007) 3,274,284
----------
SHORT-TERM SECURITIES - 17.48%
Triparty Repurchase Agreement dated
June 28, 1996 with
Prudential-Bache, effective yield
of 4.95%, due July 1, 1996,
collateralized by FNMAs,
6.50%-6.75%, February 25,
2021 - June 25, 2023 with a value
of 4,361,680....................... $4,272,000 4,272,000
----------
Total Short-Term Securities (cost: $4,272,000) 4,272,000
----------
TOTAL SECURITIES (COST: $22,351,717) - 99.52% 24,326,153
OTHER ASSETS AND LIABILITIES, NET - .48% 117,385
----------
NET ASSETS - 100.00% $ 24,443,538
==========
<CAPTION>
Atlas Growth and Income Fund
- --------------------------------------------------------------
shares or
face amount
----------
value
(note 1)
----------
<S> <C> <C>
COMMON STOCKS - 82.86%
Aerospace & Defense - 1.62%
Boeing Co.......................... 8,000 $ 697,000
Northrop Grumman Corp.............. 6,700 456,437
Rockwell International Corp........ 17,000 973,250
Apparel & Textiles - 1.20%
Gucci Group NV (b)................. 10,000 645,000
Shaw Industries, Inc. ............ 50,000 656,250
Unifi, Inc. ...................... 10,000 281,250
Automotive - .58%
General Motors Corp................ 14,500 759,437
Banks - 4.29%
Corestates Financial Corp.......... 30,000 1,155,000
First Bank System, Inc. .......... 9,500 551,000
Firstar Corp....................... 26,000 1,199,250
J.P. Morgan & Company, Inc. ...... 10,000 846,250
National City Corp................. 30,000 1,053,750
NationsBank Corp................... 10,000 826,250
Broadcast, Radio & TV - .90%
Viacom, Inc. Cl. B (b)............. 30,500 1,185,688
Chemicals - 2.09%
Cabot Corp......................... 45,000 1,102,500
DuPont (E.I.) De Nemours & Co...... 9,000 712,125
Morton International, Inc.......... 25,000 931,250
Computer Hardware - 3.27%
Cisco Systems, Inc. (b)............ 33,000 1,868,625
Hewlett-Packard Co................. 12,000 1,195,500
Sun Microsystems, Inc. (b)......... 21,000 1,236,375
Computer Software - 4.40%
Electronic Data Systems Corp....... 18,019 968,521
First Data Corp.................... 19,000 1,512,875
Nintendo Corp., Ltd................ 7,500 557,979
Oracle Corp. (b)................... 27,250 1,074,672
Sterling Commerce, Inc. (b)........ 45,000 1,670,625
</TABLE>
19
<PAGE> 21
Statements of Investments in Securities and Net Assets June 30, 1996
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or
face amount
---------- value
(note 1)
----------
<S> <C> <C>
Consumer Goods & Services - .26%
Adidas AG.......................... 8,000 $ 336,105
Drugs & Health Care - 9.46%
American Home Products Corp........ 11,000 661,375
Amgen, Inc. (b).................... 18,000 972,000
Astra AB Free, Series A............ 36,700 1,620,547
Cardinal Health, Inc............... 21,000 1,514,625
Genzyme Corp. (b).................. 17,500 879,375
Healthsouth Corp. (b).............. 82,000 2,952,000
Johnson & Johnson.................. 24,000 1,188,000
Merck & Co., Inc................... 15,000 969,375
Orthodontic Centers of America,
Inc. (b)........................... 30,000 780,000
Pharmacia & Upjohn, Inc............ 20,000 887,500
Electrical Equipment - 3.31%
Emerson Electric Co................ 15,500 1,400,813
General Electric Co................ 12,000 1,038,000
Honeywell, Inc..................... 35,000 1,907,500
Electrical Utilities - 2.52%
Baltimore Gas & Electric Co........ 16,000 454,000
Carolina Power & Light Co.......... 28,000 1,064,000
Detroit Edison Co.................. 15,000 463,125
Southern Co........................ 20,000 492,500
Unicom Corp........................ 30,000 836,250
Electronics - 1.60%
Flextronics International, Ltd.
(b)................................ 10,800 283,500
General Motors Corp. Cl. H......... 16,100 968,012
SCI Systems, Inc. (b).............. 20,900 849,062
Energy Services & Producers - 2.34%
Dresser Industries, Inc............ 25,000 737,500
Halliburton Co..................... 12,000 666,000
Schlumberger, Ltd.................. 13,000 1,095,250
Western Atlas, Inc. (b)............ 10,000 582,500
Financial Services - 3.34%
Associates First Capital Corp.
(b)................................ 15,000 564,375
Household International, Inc....... 15,000 1,140,000
MBNA Corp.......................... 40,000 1,140,000
May & Speh, Inc. (b)............... 21,400 326,350
Medaphis Corp. (b)................. 2,900 114,913
Student Loan Marketing
Association........................ 15,000 1,110,000
Food & Beverages - 2.31%
Anheuser-Busch Companies, Inc...... 15,000 1,125,000
CPC International, Inc............. 17,000 1,224,000
Quaker Oats Co..................... 20,000 682,500
Funeral Services - 1.45%
Service Corporation
International...................... 33,200 1,909,000
Gas Utilities - 1.40%
MAPCO, Inc......................... 15,000 845,625
Sonat, Inc......................... 22,000 990,000
Holding Companies - .59%
Canadian Pacific, Ltd.............. 35,000 770,000
Industrial & Commercial Machines - 1.40%
Lexmark International Group, Inc.
(b)................................ 32,500 654,062
Xerox Corp......................... 22,200 1,187,700
Industrial Manufacturing - 1.15%
Minnesota Mining & Manufacturing
Co. ............................... 10,000 690,000
Tyco International, Ltd............ 20,000 815,000
Industrial Services - .23%
Danka Business Systems ADR......... 10,500 307,125
Informational Services - .71%
Dun & Bradstreet Corp.............. 15,000 937,500
<CAPTION>
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or
face amount
----------
value
(note 1)
----------
<S> <C> <C>
Insurance - 2.06%
Compdent Corp. (b)................. 18,400 $ 851,000
Enhance Financial Services Group,
Inc. .............................. 30,000 840,000
MGIC Investment Corp............... 18,000 1,010,250
Leisure & Entertainment - 3.02%
Carnival Corp. Cl. A............... 12,000 346,500
Regal Cinemas, Inc. (b)............ 40,500 1,852,875
The Walt Disney Co................. 16,000 1,006,000
U.S. West Media Group.............. 42,000 766,500
Medical Products - 3.36%
Baxter International, Inc.......... 15,000 708,750
Boston Scientific Corp. (b)........ 15,000 675,000
Eli Lilly & Co..................... 10,000 650,000
Guidant Corp....................... 30,000 1,477,500
Molecular Devices Corp. (b)........ 20,000 177,500
Spine-Tech, Inc. (b)............... 25,000 725,000
Metals Mining - 1.02%
Aluminum Company of America........ 13,500 774,563
Newmont Mining Corp................ 11,500 567,813
Oil & Gas - 3.21%
Kerr-McGee Corp.................... 13,500 821,813
Royal Dutch Petroleum Co. ADR...... 5,000 768,750
Tenneco, Inc....................... 20,000 1,022,500
Union Pacific Resources Group,
Inc................................ 10,000 698,750
USX-Marathon Group................. 45,000 905,625
Paper & Forest Products - 1.84%
Bowater, Inc....................... 12,000 451,500
Champion International Corp........ 12,000 501,000
Kimberly-Clark Corp................ 19,000 1,467,750
Photographic Equipment & Supplies - .59%
Eastman Kodak Co................... 10,000 777,500
Printing, Publishing & Allied Products - .83%
Tribune Co......................... 15,000 1,089,375
Restaurants - .57%
Landry's Seafood Restaurants, Inc.
(b)................................ 30,000 742,500
Retail Trade - 5.87%
AutoZone, Inc. (b)................. 38,000 1,320,500
Kohl's Corp. (b)................... 31,000 1,135,375
May Department Stores Co........... 10,000 437,500
Pep Boys-Manny, Moe & Jack......... 36,000 1,224,000
Price/Costco, Inc. (b)............. 25,000 540,625
Revco D.S., Inc. (b)............... 12,500 298,437
Sears Roebuck & Co................. 10,000 486,250
Staples, Inc. (b).................. 15,000 292,500
Walgreen Co........................ 35,500 1,189,250
Wal-Mart Stores, Inc............... 31,000 786,625
Specialty Retailing - 3.28%
CompUSA, Inc. (b).................. 27,000 921,375
Nine West Group, Inc. (b).......... 20,000 1,022,500
OfficeMax, Inc. (b)................ 34,000 811,750
The Men's Wearhouse, Inc. (b)...... 35,250 1,136,812
U.S. Office Products Co. (b)....... 10,000 420,000
Supermarkets - 1.08%
Safeway, Inc. (b).................. 43,000 1,419,000
Telecommunications - 4.95%
AT&T Corp.......................... 21,000 1,302,000
BCE, Inc........................... 15,000 592,500
GTE Corp........................... 20,000 895,000
TCSI Corp. (b)..................... 30,000 723,750
U.S. West, Inc..................... 22,000 701,250
WorldCom, Inc. (b)................. 41,300 2,286,988
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE> 22
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or
face amount
---------- value
(note 1)
----------
<S> <C> <C>
Transportation - .76%
Trico Marine Services, Inc. (b).... 45,000 $ 1,001,250
----------
Total Common Stocks (cost:
$89,844,894) 108,870,474
----------
CONVERTIBLE PREFERRED STOCKS - 3.87%
Gas-Utilities - .73%
Williams Cos., Inc., Series E...... 12,000 954,000
Industrials - .19%
Greenfield Capital Trust (a)....... 5,000 255,000
Insurance - .12%
Merrill Lynch - MGIC
Investment Corp. STRYPES........... 3,000 162,000
Metals Mining - .62%
Freeport - McMoRan Copper &
Gold, Inc.......................... 30,000 817,500
Oil & Gas - .57%
Occidental Petroleum Corp.......... 12,000 745,500
Oil Drilling - .59%
Noble Drilling Corp................ 22,000 775,500
Telecommunications - 1.05%
LCI International, Inc............. 17,000 1,377,000
----------
Total Convertible Preferred Stocks (cost:
$3,203,493) 5,086,500
----------
CONVERTIBLE BONDS - 5.19%
Air Travel - .45%
Continental Airlines, Inc.,
6.75% due 4/15/06 (a).............. $ 500,000 597,500
Environmental Management - .42%
United Waste Systems, Inc.
4.50% due 06/01/01 (a)............. $ 500,000 548,125
Financial Services - .38%
Pioneer Financial Services,
6.50% due 04/01/03................. $ 500,000 507,500
Industrials - 2.34%
Corporate Express CNV,
4.50% due 07/01/00 (g)............. $1,300,000 1,287,000
North American Vaccine,
6.50% due 05/01/03 (a)............. $ 500,000 484,375
Thermo Electron Corp.,
4.25% due 01/01/03 (a)............. $ 500,000 618,125
United States Filter Corp.,
6% due 09/15/05 (a)................ $ 500,000 680,000
Specialty Retailing - 1.60%
The Men's Wearhouse, Inc.,
5.25% due 03/01/03................. $ 500,000 547,500
U.S. Office Products Co.,
5.50% due 02/01/01................. $1,050,000 1,548,750
----------
Total Convertible Bonds (cost: $6,090,839) 6,818,875
----------
UNITED STATES TREASURY NOTES - .19%
5% due 01/31/98..................... $ 250,000 246,015
----------
Total United States Treasury Notes (cost:
$249,641) 246,015
----------
<CAPTION>
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or
face amount
----------
value
(note 1)
----------
<S> <C> <C>
SHORT-TERM SECURITIES - 7.40%
Triparty Repurchase Agreement dated
June 28, 1996 with
Prudential-Bache, effective yield
of 4.95%, due July 1, 1996,
collateralized by FNMAs,
6.00%-6.50%, April 25,
2023 - August 25, 2023 with a value
of $3,712,567 and by FMACs, 6%-7%,
June 15, 2004 - April 15, 2023 with
a value of $6,225,079.............. $9,719,000 $ 9,719,000
----------
Total Short-Term Securities (cost: $9,719,000) 9,719,000
----------
TOTAL SECURITIES (COST: $109,107,867) - 99.51% 130,740,864
OTHER ASSETS AND LIABILITIES, NET - .49% 642,478
----------
NET ASSETS - 100.00% $131,383,342
==========
<CAPTION>
Atlas Strategic Growth Fund
- --------------------------------------------------------------
shares or
face amount
----------
value
(note 1)
----------
<S> <C> <C>
COMMON STOCKS - 77.11%
Airlines - 3.11%
AMR Corp. (b)...................... 3,300 $ 300,300
Delta Air Lines, Inc............... 3,800 315,400
Apparel & Textiles - 4.93%
Gap, Inc........................... 9,800 314,825
Liz Claiborne, Inc................. 9,300 322,012
TJX Companies, Inc................. 10,000 337,500
Banks - 14.58%
Banc One Corp...................... 7,500 255,000
Bank of New York Co., Inc.......... 5,400 276,750
BankAmerica Corp................... 4,100 310,575
Barnett Banks, Inc................. 4,100 250,100
Chase Manhattan Corp............... 6,248 441,265
Citicorp........................... 3,700 305,713
First Bank System, Inc............. 4,000 232,000
NationsBank Corp................... 3,800 313,975
PNC Bank Corp...................... 7,500 223,125
Suntrust Banks, Inc................ 7,400 273,800
Chemicals & Allied Products - 2.57%
Morton International, Inc.......... 7,000 260,750
Union Carbide Corp................. 6,200 246,450
Computer Hardware - 6.85%
Compaq Computer Corp. (b).......... 5,000 246,250
Data General Corp. (b)............. 19,600 254,800
Hewlett-Packard Co................. 2,900 288,912
International Business Machines
Corp............................... 2,600 257,400
Sun Microsystems, Inc. (b)......... 5,200 306,150
Computer Software - 3.33%
Cabletron Systems, Inc. (b)........ 1,900 130,387
Computer Associates International,
Inc. .............................. 2,850 203,063
Microsoft Corp. (b)................ 2,700 324,338
Consumer Goods & Services - 1.77%
Nike, Inc.......................... 3,400 349,350
</TABLE>
21
<PAGE> 23
Statements of Investments in Securities and Net Assets June 30, 1996
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Growth Fund (continued)
- --------------------------------------------------------------
shares or
face amount
---------- value
(note 1)
----------
<S> <C> <C>
Drugs & Health Care - 5.39%
Johnson & Johnson.................. 5,600 $ 277,200
Medtronic, Inc..................... 4,300 240,800
Pfizer, Inc........................ 3,800 271,225
Schering-Plough Corp............... 4,400 276,100
Electronics - 1.28%
Applied Materials, Inc. (b)........ 8,300 252,113
Energy Producers & Services - 1.65%
Baker Hughes, Inc.................. 9,900 325,462
Financial Services - 9.17%
Federal Home Loan Mortgage Corp.... 3,700 316,350
Federal National Mortgage
Association........................ 8,000 268,000
Green Tree Financial Corp.......... 9,400 293,750
Merrill Lynch & Co., Inc........... 4,900 319,113
Morgan Stanley Group, Inc.......... 5,900 289,838
Salomon, Inc....................... 7,400 325,600
Food & Beverages - 1.54%
Pepsico, Inc....................... 8,600 304,225
Homebuilders/Real Estate - 2.39%
Kaufman & Broad Home Corp.......... 18,200 263,900
Pulte Corp......................... 7,800 208,650
Industrial Manufacturing - 1.33%
Dover Corp......................... 5,700 262,912
Insurance - 6.41%
American International Group,
Inc................................ 3,100 305,737
Cigna Corp......................... 2,700 318,262
Travelers Group, Inc............... 7,400 337,625
USF&G Corp......................... 18,600 304,575
Leisure & Entertainment - 1.26%
Brunswick Corp..................... 12,500 250,000
Machine Tools & Equipment - 1.27%
Snap-On, Inc....................... 5,300 251,087
Oil & Gas - 4.19%
Mobil Corp......................... 2,100 235,463
Phillips Petroleum Co.............. 7,400 309,875
USX-Marathon Group................. 14,100 283,763
Retail Trade - 1.48%
Kroger Co.......................... 7,400 292,300
Telecommunications - 1.10%
Sprint Corp........................ 5,200 218,400
Transportation - 1.51%
CSX Corp........................... 6,200 299,150
----------
Total Common Stocks (cost:
$13,043,395) 15,241,665
----------
SHORT-TERM SECURITIES - 23.15%
Triparty Repurchase Agreement dated
June 28, 1996 with
Prudential-Bache, effective yield
of 4.95%, due July 1, 1996,
collateralized by FNMAs, 6.50%,
June 25, 2023 - August 25, 2023
with a value of $1,966,133 and by
FMACs, 6%, March 15, 2023 with a
value of $2,716,869................ $4,577,000 4,577,000
----------
Total Short-Term Securities (cost: $4,577,000) 4,577,000
----------
TOTAL SECURITIES (COST: $17,620,395) - 100.26% 19,818,665
OTHER ASSETS AND LIABILITIES, NET - (.26)% (51,676)
----------
NET ASSETS - 100.00% $ 19,766,989
==========
</TABLE>
<TABLE>
<CAPTION>
Atlas Global Growth Fund
- --------------------------------------------------------------
shares, units
or
face amount (h)
------------- value
(note 1)
----------
<S> <C> <C>
COMMON STOCKS - 82.42%
Advertising Services - .28%
Cordiant PLC (b)................ 11,300 $ 19,308
Apparel & Textiles - 3.99%
Benetton Group SpA.............. 4,000 51,766
Chargeurs....................... 400 112,020
Giordano International Ltd...... 20,000 19,378
Wolford AG...................... 400 97,985
Automotive - .79%
Volkswagen AG................... 150 55,824
Banks - 6.12%
Banco Bradesco SA, Preference... 5,940,000 47,520
Banco Frances del Rio de la
Plata SA ADR.................... 2,000 57,500
Chase Manhattan Corp............ 400 28,250
Citicorp........................ 800 66,100
HSBC Holdings PLC............... 1,200 18,138
Industrial Finance Corp......... 10,000 44,908
Northern Trust Corp............. 600 34,650
Philippine National Bank (b).... 3,300 55,105
PT Lippo Bank................... 10,000 16,971
Societe Generale de Paris....... 200 22,015
Standard Chartered Bank PLC..... 4,000 39,827
Beer, Wine, & Distilled Alcohol - 1.69%
South African Breweries Ltd..... 4,050 118,778
Broadcast, Radio & TV - .44%
Grupo Televisa SA, Sponsored ADR
(b)............................. 1,000 30,750
Chemicals - .24%
Hoechst AG...................... 500 16,979
Computer Hardware - 2.29%
Cisco Systems, Inc. (b)......... 1,000 56,625
Digital Equipment Corp. (b)..... 1,000 45,000
Hewlett-Packard Co.............. 400 39,850
International Business Machines
Corp............................ 200 19,800
Computer Software - 3.85%
First Data Corp................. 400 31,850
Ines Corp....................... 3,000 56,254
Microsoft Corp. (b)............. 300 36,038
Misys PLC....................... 6,000 72,415
Nintendo Corp. Ltd.............. 1,000 74,731
Consumer Goods & Services - 2.63%
Adidas AG....................... 1,000 84,172
Reebok International Ltd........ 3,000 100,875
Cosmetics/Personal Care - 1.66%
Wella AG........................ 200 117,144
Diversified Financial - 1.63%
American Express Co............. 1,000 44,625
JCG Holdings Ltd................ 30,000 24,416
Sonae Investimentos Sociedade
Gestora de Participacoes
Soclais......................... 1,200 31,238
Taiwan Fund, Inc................ 600 14,400
Diversified Media - .34%
Time Warner, Inc................ 600 23,550
Drugs & Health Care - 7.42%
Amgen, Inc. (b)................. 1,000 54,000
Astra AB Free, Series A......... 3,000 132,830
Biochem Pharma, Inc. (b)........ 1,000 37,500
Ciba-Geigy AG................... 20 24,419
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE> 24
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- --------------------------------------------------------------
shares, units
or
face amount (h)
------------- value
(note 1)
----------
<S> <C> <C>
Eisai Co. Ltd................... 1,000 $ 18,934
Gehe AG......................... 60 40,355
Genzyme Corp. (b)............... 800 40,200
Glaxo Wellcome PLC, ADR......... 4,000 107,000
Johnson & Johnson............... 600 29,700
Sanofi SA....................... 507 38,041
Electric Utilities - .60%
Veba AG......................... 800 42,577
Electrical Equipment - 1.57%
Canon, Inc...................... 1,000 20,855
Sony Corp....................... 500 32,975
Ushio, Inc...................... 3,000 36,771
Yokogawa Electric Corp.......... 2,000 20,123
Electronics - 1.86%
Advantest Corp.................. 400 15,916
General Motors Corp., Cl.H...... 500 30,062
Intel Corp...................... 600 44,063
Keyence Corp.................... 300 40,887
Energy Services &
Producers - 1.47%
Baker Hughes, Inc............... 1,000 32,875
Global Marine, Inc. (b)......... 3,000 41,625
Western Atlas, Inc. (b)......... 500 29,125
Engineering &
Construction - 3.90%
Koninklijke Boskalis Westminster
NV.............................. 5,000 89,417
Kvaerner AS..................... 2,000 84,791
Wai Kee Holdings Ltd............ 350,000 100,604
Financial Services - .77%
MBNA Corp....................... 1,000 28,500
Merrill Lynch & Co., Inc........ 400 26,050
Food & Beverages - 2.90%
Allied Domecq PLC............... 2,500 17,552
Buenos Aires Embotelladora SA,
Sponsored ADR................... 1,000 13,250
Hellenic Bottling Co., SA....... 550 18,269
Panamerican Beverages, Inc., Cl.
A............................... 1,500 67,125
Remy Cointreau.................. 3,000 88,101
Health Care/Supplies & Services - 1.84%
Quintiles Transnational Corp.
(b)(g).......................... 500 32,875
Rhoen Klinikum AG, Non-vtg.
Preference...................... 300 34,650
United States Surgical Corp..... 2,000 62,000
Homebuilders/Real Estate - .71%
IRSA Inversiones y
Representaciones SA............. 15,000 49,968
Industrial Services - 2.70%
IHC Caland NV................... 1,200 59,103
PT Citra Marga Nusaphala
Persada......................... 15,000 22,879
SGS Societe Generale de
Surveillance Holding SA, Series
B............................... 10 23,978
VBH-Vereinigter Baubeschlag
Handel AG....................... 80 21,060
WMX Technologies, Inc........... 700 22,925
WPP Group PLC................... 12,000 40,448
Insurance - 7.12%
American International Group,
Inc. ........................... 1,000 98,625
Assicurazioni Generali.......... 1,500 34,771
Corporacion Mapfre.............. 800 40,886
Marschollek, Lautenschlaeger und
Partner AG...................... 25 26,324
Mediolanum SpA (b).............. 10,000 99,298
Reinsurance Australia Corp. Ltd.
(a)............................. 35,000 101,781
<CAPTION>
Atlas Global Growth Fund (continued)
- --------------------------------------------------------------
shares, units
or
face amount (h)
-------------
value
(note 1)
----------
<S> <C> <C>
Schweizerische
Rueckversickerungs (b).......... 20 $ 20,576
Skandia Forsakrings AB.......... 3,000 79,562
Leisure & Entertainment - .24%
Resorts World Berhad............ 3,000 17,198
Machine Tools & Equipment - 1.12%
Komatsu, Ltd.................... 8,000 79,030
Manufacturing - 1.82%
Bic Corp........................ 200 28,433
Bombardier, Inc. Cl.B........... 3,000 44,843
Mitsubishi Heavy Industries
Ltd............................. 3,000 26,151
Powerscreen International PLC... 4,000 28,456
Metals Mining - 2.18%
Companhia Vale Do Rio Doce,
Preference...................... 2,000 39,735
Freeport-McMoRan Copper & Gold,
Inc., Cl. B..................... 800 25,500
Minerals Technologies, Inc...... 600 20,550
Newmont Mining Corp............. 400 19,750
Placer Dome, Inc................ 2,000 47,750
Oil & Gas - 3.74%
British Petroleum Co. PLC....... 4,000 35,074
Gulf Canada Resources, Ltd.
(b)............................. 4,000 20,500
Norsk Hydro AS.................. 1,400 68,634
Royal Dutch Petroleum Co. ADR... 265 40,744
Total CIE Francaise Petroles SA,
Series B........................ 511 37,944
Unocal Corp..................... 1,800 60,750
Paper & Forest Products - .41%
Bobst Bearers AG................ 20 28,902
Printing, Publishing & Allied Products - .85%
News Corp. Ltd. ADR............. 1,000 23,500
Reuters Holdings PLC,
Series B ADR.................... 500 36,250
Retail Trade - 1.82%
Cifra SA de CV, Series B (b).... 39,200 56,558
Disco ADR (b)................... 2,000 44,250
PT Matahari Putra Prima......... 15,000 27,551
Specialty Retailing - 2.38%
Circuit City Stores, Inc........ 2,500 90,312
FamilyMart...................... 1,000 44,638
Jusco Co........................ 1,000 32,838
Telecommunications-Technology - 2.25%
Millicom International
Cellular SA (b)................. 2,000 95,250
PT Telekomunikasi Indonesia
ADR............................. 600 17,850
Tele-Communications, Inc.,
Series A (b).................... 2,500 45,313
Telephone Utilities - 5.05%
DDI Corp........................ 6 52,467
Portugal Telecom SA............. 2,200 57,593
Telecom Italia SpA.............. 30,000 67,274
Telecomunicacoes Brasileiras SA,
Preference...................... 2,500,000 178,750
Transportation - 1.75%
Brambles Industries Ltd......... 2,000 27,791
The Guangshen Railway Co. Ltd.
ADR (b)......................... 5,000 95,625
----------
Total Common Stocks (cost: $5,686,349) 5,806,710
----------
</TABLE>
23
<PAGE> 25
Statements of Investments in Securities and Net Assets June 30, 1996
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- --------------------------------------------------------------
shares, units
or
face amount (h)
------------- value
(note 1)
----------
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES - .06%
PT Lippo Bank Rts., Exp.
07/01/96....................... 5,000 $ 4,511
----------
Total Rights, Warrants and Certificates (Cost: $0) 4,511
----------
SHORT-TERM SECURITIES - 17.01%
Tripurchase Agreement dated June
28, 1996 with Prudential-Bache,
effective yield of 4.95%, due
July 1, 1996 collateralized by
FNMAs, 6.75%, February 25, 2001
with a value of $1,213,141...... $ 1,198,000 1,198,000
----------
Total Short-Term Securities (cost: $1,198,000) 1,198,000
----------
TOTAL SECURITIES (COST: $6,884,349) - 99.49% 7,009,221
OTHER ASSETS AND LIABILITIES, NET - 0.51% 35,648
----------
NET ASSETS - 100.00% $ 7,044,869
==========
</TABLE>
* Variable rate demand notes are tax-exempt obligations which contain a floating
or variable interest rate adjustment formula (computed daily or weekly) and an
unconditional right of demand to receive payment of the unpaid principal
balance plus accrued interest upon short notice prior to specified dates. The
interest rate may change on specified dates in relationship with changes in a
designated rate (such as the prime interest or U.S. Treasury Bill rates).
ACES = Automatic Common Exchange Securities
ADR = American Depositary Receipt
AMBAC = AMBAC Indemnity Corporation
AMT = Alternative Minimum Tax
BIG = Bond Investors Guarantee
COP = Certificate of Participation
DECS = Debt Exchangeable for Common Stock
ELKS = Equity-Linked Security Valuation
FGIC = Financial Guarantee Insurance Corporation
FLIRBs = Front Loaded Interest Reduction Bonds
FSA = Financial Security Assurance Inc.
LYONS = Liquid Yield Option Notes
MBIA = Municipal Bond Investors Assurance
MIPS = Monthly Income Preferred Shares
PRIDES = Provisionally Redeemable Income Debt Exchangeable for Stock
SONYMA = State of New York Mortgage Authority
STRYPES = Structured Yield Product Exchangeable for Stock
(a) Restricted securities which are exempt from registration under Rule 144A of
the Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
the end of the period the value of these securities amounted to $1,022,875
or 4.18% of net assets in the Balanced Fund, $3,183,125 or 2.42% of net
assets in the Growth and Income Fund. $544,788 or 10.97% of net assets in
the Strategic Income Fund, and $101,781 or 1.44% of net assets in the
Global Growth Fund.
(b) Non-income producing security.
(c) Represents the current interest rate for a variable rate security.
(d) Denotes a step bond: a zero coupon bond that converts to a fixed rate of
interest at a designated future date.
(e) Represents the current interest rate for an increasing rate security.
(f) For zero coupon bonds, the interest rate shown is the effective yield on
the date of purchase.
(g) Identifies issues considered to be illiquid - See Note 9 to Financial
Statements.
(h) Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
<TABLE>
<S> <C>
AUD - Australian Dollar
AUS - Austrian Schilling IDR - Indonesian Rupiah
CAD - Canadian Dollar ITL - Italian Lira
CHF - Swiss Franc JPY - Japanese Yen
CHP - Chilean Peso NZD - New Zealand Dollar
DEM - German Deutsche Mark PLZ - Polish Zloty
ESP - Spanish Peseta SAR - South African Rand
GBP - British Pound Sterling SEK - Swedish Krona
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE> 26
(This page has been left blank intentionally.)
25
<PAGE> 27
Statements of Assets and Liabilities June 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds Bond Funds
----------------------------------------------------------------------------------------
California National
Insured Insured
U.S. California National Intermediate Intermediate
Treasury Municipal Municipal Municipal Municipal
Money Fund Money Fund Money Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in
securities, at
identified cost... $60,215,453 $ 39,067,488 $ 7,316,551 $19,996,281 $13,725,873
========== ========== ========== ========== ==========
Investment in
securities, at
value............. $60,215,453 $ 39,067,488 $ 7,316,551 $20,180,353 $13,917,267
Cash................ 5,276 48,260 21,889 26,183 0
Receivables for:
Sales of
investments..... 0 0 0 547,605 0
Sales of Fund's
shares.......... 188,274 3,409 2,058 0 0
Accrued interest
and dividends... 0 398,087 45,259 377,620 163,188
Other............. 0 0 0 0 0
Unrealized
appreciation of
forward foreign
currency exchange
contracts (Note 8).. 0 0 0 0 0
Unamortized
organization costs
(Note 2).......... 2,154 0 0 2,154 2,154
---------- ---------- ---------- ---------- ----------
Total assets........ 60,411,157 39,517,244 7,385,757 21,133,915 14,082,609
---------- ---------- ---------- ---------- ----------
LIABILITIES:
Payables for:
Purchases of
investments..... 0 2,013,430 0 526,875 0
Redemptions of
Fund's shares... 335,298 11,300 7,000 0 8,802
Dividends......... 15,346 4,044 1,217 21,246 18,037
Repurchases of
investments under
dollar roll
agreements........ 0 0 0 0 0
Accrued
expenses........ 26,251 19,325 3,950 13,157 16,529
Other
liabilities..... 0 0 0 0 0
Unrealized
depreciation of
forward foreign
currency exchange
contracts (Note 8).. 0 0 0 0 0
---------- ---------- ---------- ---------- ----------
Total liabilities... 376,895 2,048,099 12,167 561,278 43,368
---------- ---------- ---------- ---------- ----------
NET ASSETS............ $60,034,262 $ 37,469,145 $ 7,373,590 $20,572,637 $14,039,241
========== ========== ========== ========== ==========
NET ASSETS CONSIST OF:
Unrealized
appreciation
(depreciation) (Note
3).................. $ 0 $ 0 $ 0 $ 184,072 $ 191,394
Accumulated net
realized gain
(loss)............ (10,812) (4,025) (377) (465,780) (388,910)
Undistributed net
investment
income............ 0 0 0 0 0
Paid-in capital..... 60,045,074 37,473,170 7,373,967 20,854,345 14,236,757
---------- ---------- ---------- ---------- ----------
NET ASSETS............ $60,034,262 $ 37,469,145 $ 7,373,590 $20,572,637 $14,039,241
========== ========== ========== ========== ==========
NET ASSET VALUE PER
SHARE:
Class A
Net Assets........ $59,918,893 $ 37,469,145 $ 7,373,590 $20,101,940 $13,755,541
Shares
outstanding..... 59,929,681 37,473,170 7,373,967 1,972,252 1,354,213
Net asset value
per share....... $ 1.00 $ 1.00 $ 1.00 $ 10.19 $ 10.16
Maximum offering
price per share
(net asset value
plus sales charge
of 3.0% for Bond
and Stock Funds).. $ 1.00 $ 1.00 $ 1.00 $ 10.51 $ 10.47
Class B
Net Assets........ $ 115,369 NA NA $ 470,697 $ 283,700
Shares
outstanding..... 115,393 NA NA 46,214 27,912
Net asset value
per share and
maximum offering
price............. $ 1.00 NA NA $ 10.19 $ 10.16
CAPITAL SHARES
AUTHORIZED:......... 75,000,000 350,000,000 130,000,000 25,000,000 25,000,000
========== =========== =========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE> 28
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
----------------------------------------------------------------------------------------------------------------------------
U.S.
U.S. Government
Government California National and Mortgage Strategic
Intermediate Municipal Municipal Securities Income
Fund Bond Fund Bond Fund Fund Fund
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in securities, at identified cost... $ 8,394,385 $173,308,596 $49,920,648 $277,663,292 $ 5,035,329
========= =========== ========== =========== ==========
Investment in securities, at value............. $ 8,171,451 $179,659,220 $51,683,145 $275,852,453 $ 5,061,866
Cash........................................... 52,065 28,428 19,736 76,042 29,674
Receivables for:
Sales of investments......................... 0 0 0 205,634 17,077
Sales of Fund's shares....................... 0 27,233 132,957 73,151 0
Accrued interest and dividends............... 47,355 3,218,805 740,184 1,451,413 79,847
Other........................................ 0 0 0 0 0
Unrealized appreciation of forward foreign
currency exchange contracts (Note 8)......... 0 0 0 0 226
Unamortized organization costs (Note 2)........ 2,154 2,154 2,154 2,154 0
--------- ----------- ---------- ----------- ---------
Total assets................................... 8,273,025 182,935,840 52,578,176 277,660,847 5,188,690
--------- ----------- ---------- ----------- ---------
LIABILITIES:
Payables for:
Purchases of investments..................... 0 0 1,007,150 0 186,442
Redemptions of Fund's shares................. 0 4,000 0 122,695 0
Dividends.................................... 15,189 220,766 41,010 513,396 34,497
Repurchases of investments under dollar roll
agreements................................. 0 0 0 33,333,383 0
Accrued expenses............................. 3,599 216,882 62,950 303,680 170
Other liabilities............................ 0 0 0 37,645 771
Unrealized depreciation of forward foreign
currency exchange contracts (Note 8)......... 0 0 0 0 2,823
----------- ----------- ----------- ----------- -----------
Total liabilities.............................. 18,788 441,648 1,111,110 34,310,799 224,703
---------- ----------- ---------- ----------- -----------
NET ASSETS....................................... $ 8,254,237 $182,494,192 $51,467,066 $243,350,048 $ 4,963,987
========== =========== ========== =========== ==========
NET ASSETS CONSIST OF:
Unrealized appreciation (depreciation)
(Note 3)..................................... $ (222,934) $ 6,350,624 $ 1,762,497 $ (1,810,839) $ 22,717
Accumulated net realized gain (loss)........... (248,865) (868,645) 186,403 (13,256,994) (58,730)
Undistributed net investment income............ 0 0 0 0 0
Paid-in capital................................ 8,726,036 177,012,213 49,518,166 258,417,881 5,000,000
---------- ----------- ---------- ----------- ---------
NET ASSETS....................................... $ 8,254,237 $182,494,192 $51,467,066 $243,350,048 $ 4,963,987
========== =========== ========== =========== ==========
NET ASSET VALUE PER SHARE:
Class A
Net Assets................................... $ 7,791,914 $178,148,330 $49,989,641 $237,967,425 $ 4,961,506
Shares outstanding........................... 822,873 16,374,446 4,533,932 23,891,401 999,500
Net asset value per share.................... $ 9.47 $ 10.88 $ 11.03 $ 9.96 $ 4.96
Maximum offering price per share (net asset
value plus sales charge of 3.0% for Bond
and Stock Funds)........................... $ 9.76 $ 11.22 $ 11.37 $ 10.27 $ 5.11
Class B
Net Assets................................... $ 462,323 $ 4,345,862 $ 1,477,425 $ 5,382,623 $ 2,481
Shares outstanding...........................
Net asset value per share and maximum 48,821 399,238 133,964 540,379 500
offering price............................. $ 9.47 $ 10.89 $ 11.03 $ 9.96 $ 4.96
CAPITAL SHARES AUTHORIZED:....................... 25,000,000 50,000,000 20,000,000 50,000,000 50,000,000
========== =========== ========== ========== ==========
Stock Funds
----------------------------------------------------------------------------------------------------------------------------
Balanced Growth and Strategic Global
Fund Income Fund Growth Fund Growth Fund
<S> <C> <C> <C> <C>
ASSETS:
Investment in securities, at identified cost... $22,351,717 $109,107,867 $17,620,395 $ 6,884,349
========== =========== ========== ==========
Investment in securities, at value............. $24,326,153 $130,740,864 $19,818,665 $ 7,009,221
Cash........................................... 994 4,224 40 293,692
Receivables for:
Sales of investments......................... 0 392,500 0 40,819
Sales of Fund's shares....................... 299,139 222,787 0 224,349
Accrued interest and dividends............... 193,475 279,172 16,839 5,994
Other........................................ 3,146 8,569 0 249
Unrealized appreciation of forward foreign
currency exchange contracts (Note 8)......... 0 0 0 383
Unamortized organization costs (Note 2)........ 2,154 2,154 2,154 0
---------- ----------- ---------- ---------
Total assets................................... 24,825,061 131,650,270 19,837,698 7,574,707
---------- ----------- ---------- ---------
LIABILITIES:
Payables for:
Purchases of investments..................... 309,361 0 0 521,428
Redemptions of Fund's shares................. 20,759 81,867 39,000 1,021
Dividends.................................... 16,946 7,638 0 0
Repurchases of investments under dollar roll
agreements................................. 0 0 0 0
Accrued expenses............................. 33,594 177,423 28,700 7,389
Other liabilities............................ 863 0 3,009 0
Unrealized depreciation of forward foreign
currency exchange contracts (Note 8)......... 0 0 0 0
---------- ----------- ---------- ----------
Total liabilities.............................. 381,523 266,928 70,709 529,838
---------- ----------- ---------- ----------
NET ASSETS....................................... $24,443,538 $131,383,342 $19,766,989 $ 7,044,869
========== =========== ========== ==========
NET ASSETS CONSIST OF:
Unrealized appreciation (depreciation)
(Note 3)..................................... $ 1,976,632 $ 21,633,117 $ 2,198,270 $ 124,003
Accumulated net realized gain (loss)........... 421,400 3,870,223 1,300,988 (25,715)
Undistributed net investment income............ 2,002 9 74,732 10,859
Paid-in capital................................ 22,043,504 105,879,993 16,192,999 6,935,722
---------- ----------- ---------- ----------
NET ASSETS....................................... $24,443,538 $131,383,342 $19,766,989 $ 7,044,869
========== =========== ========== ==========
NET ASSET VALUE PER SHARE:
Class A
Net Assets................................... $20,678,530 $122,074,051 $15,420,409 $ 6,087,142
Shares outstanding........................... 1,759,153 6,891,522 1,105,798 593,040
Net asset value per share.................... $ 11.75 $ 17.71 $ 13.95 $ 10.26
Maximum offering price per share (net asset
value plus sales charge of 3.0% for Bond
and Stock Funds)........................... $ 12.11 $ 18.26 $ 14.38 $ 10.58
Class B
Net Assets................................... $ 3,765,008 $ 9,309,291 $ 4,346,580 $ 957,727
Shares outstanding........................... 321,038 526,816 313,954 93,433
Net asset value per share and maximum
offering price............................. $ 11.73 $ 17.67 $ 13.84 $ 10.25
CAPITAL SHARES AUTHORIZED:....................... 20,000,000 20,000,000 10,000,000 15,000,000
========== =========== ========== ==========
</TABLE>
27
<PAGE> 29
Statements of Operations (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds Bond Funds
----------------------------------------------------------------------------------------------
California National California Insured National Insured
U.S. Treasury Municipal Municipal Intermediate Intermediate
Money Fund(1) Money Fund(1) Money Fund(1) Municipal Fund(1) Municipal Fund(1)
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest............... $ 1,438,111 $ 649,366 $ 130,809 $ 547,522 $ 375,059
Dividends.............. 0 0 0 0 0
--------- -------- -------- --------- --------
Total income............. 1,438,111 649,366 130,809 547,522 375,059
--------- -------- -------- --------- --------
Expenses:
Management fees (Note
6)................... 140,551 96,798 18,313 63,670 42,517
12b-1 fees: (Note 6)
Class A.............. 70,129 48,399 9,157 28,378 18,975
Class B.............. 441 0 0 1,690 1,051
Transfer agency fees
and expenses......... 41,993 17,962 5,744 17,671 14,015
Custodian fees and
expenses............. 20,236 16,912 6,980 11,154 8,445
Directors' fees........ 1,410 972 184 582 388
Registration fees...... 3,815 624 628 1,095 1,144
Accounting and legal
fees................. 5,440 5,012 4,815 5,232 5,183
Printing and postage... 4,340 1,994 560 953 721
Other.................. 4,868 4,608 2,187 1,384 1,009
--------- -------- -------- --------- --------
Gross expenses........... 293,223 193,281 48,568 131,809 93,448
Waiver of management
fees (Note 6)........ (88,052) (23,581) (14,980) (1,642) (5,063)
Waiver of 12b-1 fees:
(Note 6)
Class A.............. (70,129) (48,399) (9,157) (27,889) (18,975)
Class B.............. (96) 0 0 (363) (231)
Expense reimbursement
(Note 6)............... (7,994) 0 0 (8,311) (8,312)
--------- -------- -------- --------- --------
Net expenses............. 126,952 121,301 24,431 93,604 60,867
--------- -------- -------- --------- --------
Net investment income.... 1,311,159 528,065 106,378 453,918 314,192
--------- -------- -------- --------- --------
REALIZED GAIN (LOSS) AND
UNREALIZED
APPRECIATION (DEPRECIATION)
OF INVESTMENTS
AND FOREIGN CURRENCY:
Realized gain (loss):
Proceeds from sales.... 61,872,101 5,339,300 1,569,000 10,162,495 7,338,100
Cost of securities
sold................. 61,882,913 5,343,325 1,569,377 10,032,495 7,320,196
--------- -------- -------- --------- --------
Net realized gain
(loss)................. (10,812) (4,025) (377) 130,000 17,904
--------- -------- -------- --------- --------
Unrealized appreciation
(depreciation):
Beginning of period.... 0 0 0 734,722 539,819
End of period.......... 0 0 0 184,072 191,394
--------- -------- -------- --------- --------
Unrealized appreciation
(depreciation)......... 0 0 0 (550,650) (348,425)
--------- -------- -------- --------- --------
Net realized gain (loss)
and unrealized
appreciation
(depreciation) of
investments and foreign
currency................. (10,812) (4,025) (377) (420,650) (330,521)
--------- -------- -------- --------- --------
Net increase (decrease)
in net assets resulting
from operations.......... $ 1,300,347 $ 524,040 $ 106,001 $ 33,268 $ (16,329)
--------- -------- -------- --------- --------
--------- -------- -------- --------- --------
</TABLE>
(1) For the six months ended June 30, 1996.
(2) For the period May 20, 1996 (inception of operations) to June 30, 1996.
(3) For the period April 15, 1996 (inception of operations) to June 30, 1996.
The accompanying notes are an integral part of these financial statements.
28
<PAGE> 30
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
------------------------------------------------------------------------------------------
U.S.
U.S. California National Government
Government Municipal Municipal and Mortgage Strategic
Intermediate Bond Bond Securities Income
Fund(1) Fund(1) Fund(1) Fund(1) Fund(2)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest............... $ 261,379 $ 5,282,212 $ 1,462,998 $ 9,544,959 $ 45,455
Dividends.............. 0 0 0 0 0
-------- --------- --------- ---------- --------
Total income............. 261,379 5,282,212 1,462,998 9,544,959 45,455
-------- --------- --------- ---------- --------
Expenses:
Management fees (Note
6)................... 23,152 503,359 144,643 692,080 6,190
12b-1 fees: (Note 6)
Class A.............. 10,001 224,168 64,260 308,823 2,062
Class B.............. 1,568 13,894 4,461 17,277 3
Transfer agency fees
and expenses......... 13,124 63,427 28,565 129,124 5,010
Custodian fees and
expenses............. 4,392 66,119 23,021 104,426 11,560
Directors' fees........ 211 4,595 1,321 6,319 41
Registration fees...... 1,121 1,812 1,229 1,730 0
Accounting and legal
fees................. 5,139 6,239 5,417 7,676 1,706
Printing and postage... 612 6,844 2,449 14,913 128
Other.................. 726 1,644 391 4,127 7
-------- --------- --------- ---------- --------
Gross expenses........... 60,046 892,101 275,757 1,286,495 26,707
Waiver of management
fees (Note 6)........ (20,231) 0 0 0 (6,190)
Waiver of 12b-1 fees:
(Note 6)
Class A.............. (10,001) 0 0 0 (1,891)
Class B.............. (340) 0 0 0 0
Expense reimbursement
(Note 6)............... (8,271) (8,824) (8,024) (8,199) (18,456))
-------- --------- --------- ---------- --------
Net expenses............. 21,203 883,277 267,733 1,278,296 170
-------- --------- --------- ---------- --------
Net investment income.... 240,176 4,398,935 1,195,265 8,266,663 45,285
-------- --------- --------- ---------- --------
REALIZED GAIN (LOSS) AND
UNREALIZED
APPRECIATION (DEPRECIATION)
OF INVESTMENTS
AND FOREIGN CURRENCY:
Realized gain (loss):
Proceeds from sales.... 4,509,781 38,188,912 23,249,146 122,986,332 7,719,851
Cost of securities
sold................. 4,491,808 37,134,405 22,797,733 123,396,842 7,778,581
-------- --------- --------- ---------- --------
Net realized gain
(loss)................. 17,973 1,054,507 451,413 (410,510) (58,730)
-------- --------- --------- ---------- --------
Unrealized appreciation
(depreciation):
Beginning of period.... 52,195 13,639,556 3,939,837 6,259,532 0
End of period.......... (222,934) 6,350,624 1,762,497 (1,810,839) 22,717
-------- --------- --------- ---------- --------
Unrealized appreciation
(depreciation)......... (275,129) (7,288,932) (2,177,340) (8,070,371) 22,717
-------- --------- --------- ---------- --------
Net realized gain (loss)
and unrealized
appreciation
(depreciation) of
investments and foreign
currency................. (257,156) (6,234,425) (1,725,927) (8,480,881) (36,013)
-------- --------- --------- ---------- --------
Net increase (decrease)
in net assets resulting
from operations.......... $ (16,980) $(1,835,490) $ (530,662) $ (214,218) $ 9,272
-------- --------- --------- ---------- --------
-------- --------- --------- ---------- --------
<CAPTION>
Stock Funds
----------------------------------------------------------------------
Balanced Growth and Strategic Global
Fund(1) Income Fund(1) Growth Fund(1) Growth Fund(3)
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest............... $ 297,304 $ 382,221 $ 101,438 $ 10,369
Dividends.............. 218,602 898,727 99,723 13,857
-------- --------- --------- --------
Total income............. 515,906 1,280,948 201,161 24,226
-------- --------- --------- --------
Expenses:
Management fees (Note
6)................... 70,566 396,966 62,596 7,732
12b-1 fees: (Note 6)
Class A.............. 21,954 136,037 18,014 2,248
Class B.............. 9,745 25,770 13,025 506
Transfer agency fees
and expenses......... 19,223 69,201 16,993 7,459
Custodian fees and
expenses............. 10,588 45,108 11,057 15,393
Directors' fees........ 505 2,901 448 48
Registration fees...... 3,789 6,686 2,733 1,029
Accounting and legal
fees................. 5,213 5,814 5,198 2,555
Printing and postage... 2,471 10,615 2,399 999
Other.................. 671 9,571 1,065 319
-------- --------- --------- --------
Gross expenses........... 144,725 708,669 133,528 38,288
Waiver of management
fees (Note 6)........ 0 0 0 (7,732)
Waiver of 12b-1 fees:
(Note 6)
Class A.............. 0 0 0 0
Class B.............. 0 0 0 0
Expense reimbursement
(Note 6)............... (8,109) (8,622) (7,102) (17,189)
-------- --------- --------- --------
Net expenses............. 136,616 700,047 126,426 13,367
-------- --------- --------- --------
Net investment income.... 379,290 580,901 74,735 10,859
-------- --------- --------- --------
REALIZED GAIN (LOSS) AND
UNREALIZED
APPRECIATION (DEPRECIATION)
OF INVESTMENTS
AND FOREIGN CURRENCY:
Realized gain (loss):
Proceeds from sales.... 2,986,103 33,565,536 10,408,274 3,698,327
Cost of securities
sold................. 2,561,578 29,671,500 9,105,294 3,724,042
-------- --------- --------- --------
Net realized gain
(loss)................. 424,525 3,894,036 1,302,980 (25,715)
-------- ---------
Unrealized appreciation
(depreciation):
Beginning of period.... 1,509,486 13,567,856 1,958,299 0
End of period.......... 1,976,632 21,633,117 2,198,270 124,003
-------- --------- --------- --------
Unrealized appreciation
(depreciation)......... 467,146 8,065,261 239,971 124,003
-------- --------- --------- --------
Net realized gain (loss)
and unrealized
appreciation
(depreciation) of
investments and foreign
currency................. 891,671 11,959,297 1,542,951 98,288
-------- --------- --------- --------
Net increase (decrease)
in net assets resulting
from operations.......... $1,270,961 $12,540,198 $ 1,617,686 $ 109,147
-------- --------- --------- --------
-------- --------- --------- --------
</TABLE>
(1) For the six months ended June 30, 1996.
(2) For the period May 20, 1996 (inception of operations) to June 30, 1996.
(3) For the period April 15, 1996 (inception of operations) to June 30, 1996.
The accompanying notes are an integral part of these financial statements.
29
<PAGE> 31
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds
------------------------------------------------------------------------------------------------
U.S. Treasury Money Fund California Municipal Money Fund
------------------------------------------------------------------------------------------------
1996(1) 1995(2) 1996(1) 1995(2)
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income... $ 1,311,159 $ 1,896,588 $ 528,065 $ 1,279,858
Net realized gain (loss)
of investments and
foreign currency........ (10,812) 5,593 (4,025) 0
Net unrealized
appreciation
(depreciation) of
investments and foreign
currency................ 0 0 0 0
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets resulting
from operations......... 1,300,347 1,902,181 524,040 1,279,858
------------ ------------ ------------ ------------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A............... (1,308,764) (1,894,657) (528,065) (1,279,858)
Class B............... (2,395) (1,931) NA NA
Distributions from net
realized gain of
investments:
Class A............... 0 (3,735) 0 0
Class B............... 0 (8) NA NA
Distributions in excess
of net realized gain of
investments:
Class A............... 0 0 0 0
Class B............... 0 0 NA NA
------------ ------------ ------------ ------------
Total distributions:
Class A............... (1,308,764) (1,898,392) (528,065) (1,279,858)
Class B............... (2,395) (1,939) NA NA
------------ ------------ ------------ ------------
CAPITAL SHARE
TRANSACTIONS: (NOTE 4)
Proceeds from shares
sold:
Class A............... 39,076,368 62,421,371 11,105,003 21,048,024
Class B............... 53,544 113,548 NA NA
Proceeds from shares
issued in reinvestment
of net investment income
dividends and capital
gain dividends:
Class A............... 1,211,780 1,732,544 500,114 1,206,743
Class B............... 2,341 1,823 NA NA
Cost of shares redeemed:
Class A............... (31,742,890) (46,219,562) (13,571,238) (25,794,809)
Class B............... (53,779) (29,910) NA NA
------------ ------------ ------------ -----------
Net increase (decrease)
in net assets resulting
from capital share
transactions:
Class A............... 8,545,258 17,934,353 (1,966,121) (3,540,042)
Class B............... 2,106 85,461 NA NA
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets........... 8,536,552 18,021,664 (1,970,146) (3,540,042)
NET ASSETS:
Beginning of period..... 51,497,710 33,476,046 39,439,291 42,979,333
------------ ------------ ------------ ------------
End of period........... $ 60,034,262 $ 51,497,710 $ 37,469,145 $ 39,439,291
============ ============ ============ ============
</TABLE>
(1) For the six months ended June 30, 1996.
(2) For the year ended December 31, 1995.
The accompanying notes are an integral part of these financial statements.
30
<PAGE> 32
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
---------------------------------------------------------------------------------------
California Insured Intermediate
National Municipal Money Fund Municipal Fund
---------------------------------------------------------------------------------------
1996(1) 1995(2) 1996(1) 1995(2)
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income... $ 106,378 $ 281,685 $ 453,918 $ 965,599
Net realized gain (loss)
of investments and
foreign currency........ (377) 0 130,000 (219,822)
Net unrealized
appreciation
(depreciation) of
investments and foreign
currency................ 0 0 (550,650) 2,009,074
------------ ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations......... 106,001 281,685 33,268 2,754,851
------------ ----------- ----------- -----------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A............... (106,378) (281,685) (446,358) (954,051)
Class B............... NA NA (7,560) (11,548)
Distributions from net
realized gain of
investments:
Class A............... 0 0 0 0
Class B............... NA NA 0 0
Distributions in excess
of net realized gain of
investments:
Class A............... 0 0 0 0
Class B............... NA NA 0 0
------------ ----------- ----------- -----------
Total distributions:
Class A............... (106,378) (281,685) (446,358) (954,051)
Class B............... NA NA (7,560) (11,548)
------------ ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS: (NOTE 4)
Proceeds from shares
sold:
Class A............... 2,626,408 5,489,510 804,430 1,329,591
Class B............... NA NA 28,500 184,500
Proceeds from shares
issued in reinvestment
of net investment income
dividends and capital
gain dividends:
Class A............... 98,121 264,276 285,269 634,165
Class B............... NA NA 6,645 9,725
Cost of shares redeemed:
Class A............... (3,210,487) (8,003,464) (5,156,926) (2,782,394)
Class B............... NA NA (128) 0
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from capital share
transactions:
Class A............... (485,958) (2,249,678) (4,067,227) (818,638)
Class B............... NA NA 35,017 194,225
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets........... (486,335) (2,249,678) (4,452,860) 1,164,839
NET ASSETS:
Beginning of period..... 7,859,925 10,109,603 25,025,497 23,860,658
----------- ----------- ----------- -----------
End of period........... $ 7,373,590 $ 7,859,925 $20,572,637 $25,025,497
=========== =========== =========== ===========
<CAPTION>
Bond Funds
-------------------------------------------------------------------------------------
National Insured Intermediate U.S. Government
Municipal Fund Intermediate Fund
-------------------------------------------------------------------------------------
1996(1) 1995(2) 1996(1) 1995(2)
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income... $ 314,192 $ 661,166 $ 240,176 $ 479,742
Net realized gain (loss)
of investments and
foreign currency........ 17,904 (143,594) 17,973 (6,739)
Net unrealized
appreciation
(depreciation) of
investments and foreign
currency................ (348,425) 1,336,395 (275,129) 452,908
----------- ----------- ---------- -----------
Net increase (decrease)
in net assets resulting
from operations......... (16,329) 1,853,967 (16,980) 925,911
----------- ----------- ---------- -----------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A............... (309,292) (653,092) (229,414) (461,230)
Class B............... (4,900) (8,074) (10,762) (18,512)
Distributions from net
realized gain of
investments:
Class A............... 0 0 0 0
Class B............... 0 0 0 0
Distributions in excess
of net realized gain of
investments:
Class A............... 0 0 0 0
Class B............... 0 0 0 0
----------- ----------- ---------- -----------
Total distributions:
Class A............... (309,292) (653,092) (229,414) (461,230)
Class B............... (4,900) (8,074) (10,762) (18,512)
----------- ----------- ---------- -----------
CAPITAL SHARE
TRANSACTIONS: (NOTE 4)
Proceeds from shares
sold:
Class A............... 578,054 501,016 445,007 741,765
Class B............... 23,916 89,519 125,245 157,995
Proceeds from shares
issued in reinvestment
of net investment income
dividends and capital
gain dividends:
Class A............... 186,119 389,037 139,696 284,999
Class B............... 4,759 7,792 9,822 16,935
Cost of shares redeemed:
Class A............... (2,465,655) (2,509,192) (756,548) (2,944,712)
Class B............... (23,602) (14,830) (86,999) (87,780)
----------- ----------- ---------- ------------
Net increase (decrease)
in net assets resulting
from capital share
transactions:
Class A............... (1,701,482) (1,619,139) (171,845) (1,917,948)
Class B............... 5,073 82,481 48,068 87,150
----------- ----------- ---------- ------------
Net increase (decrease)
in net assets........... (2,026,930) (343,857) (380,933) (1,384,629)
NET ASSETS:
Beginning of period..... 16,066,171 16,410,028 8,635,170 10,019,799
------------ ----------- ---------- ------------
End of period........... $14,039,241 $16,066,171 $8,254,237 $ 8,635,170
=========== =========== ========== ============
</TABLE>
(1) For the six months ended June 30, 1996.
(2) For the year ended December 31, 1995.
The accompanying notes are an integral part of these financial statements.
31
<PAGE> 33
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
-----------------------------------------------------------------------------------------------------
California Municipal National Municipal U.S. Government and
Bond Fund Bond Fund Mortgage Securities Fund
-----------------------------------------------------------------------------------------------------
1996(1) 1995(2) 1996(1) 1995(2) 1996(1) 1995(2)
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income... $ 4,398,935 $ 9,082,532 $ 1,195,265 $ 2,524,344 $ 8,266,663 $ 17,402,773
Net realized gain (loss)
of investments and
foreign currency........ 1,054,507 1,322,704 451,413 517,526 (410,510) (3,625,362)
Net unrealized
appreciation
(depreciation) of
investments and foreign
currency................ (7,288,932) 14,521,170 (2,177,340) 4,191,978 (8,070,371) 22,616,292
------------ ------------ ----------- ----------- ------------ ------------
Net increase (decrease)
in net assets resulting
from operations......... (1,835,490) 24,926,406 (530,662) 7,233,848 (214,218) 36,393,703
------------ ------------ ----------- ----------- ------------ ------------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A............... (4,318,789) (8,987,933) (1,171,035) (2,494,396) (8,126,268) (17,261,789)
Class B............... (80,146) (94,599) (24,230) (29,948) (140,395) (140,984)
Distributions from net
realized gain of
investments:
Class A............... 0 0 0 0 0 0
Class B............... 0 0 0 0 0 0
Distributions in excess
of net realized gain of
investments:
Class A............... 0 0 0 0 0 0
Class B............... 0 0 0 0 0 0
------------ ------------ ----------- ----------- ------------ ------------
Total distributions:
Class A............... (4,318,789) (8,987,933) (1,171,035) (2,494,396) (8,126,268) (17,261,789)
Class B............... (80,146) (94,599) (24,230) (29,948) (140,395) (140,984)
------------ ------------ ----------- ----------- ------------ ------------
CAPITAL SHARE
TRANSACTIONS: (NOTE 4)
Proceeds from shares
sold:
Class A............... 10,014,675 12,716,142 1,692,942 3,432,223 12,522,789 17,947,765
Class B............... 1,338,365 1,615,527 462,302 663,083 2,026,634 2,210,214
Proceeds from shares
issued in reinvestment
of net investment income
dividends and capital
gain dividends:
Class A............... 3,043,534 6,371,160 921,918 1,951,594 5,078,734 10,710,383
Class B............... 63,451 73,646 21,390 26,570 101,031 105,302
Cost of shares redeemed:
Class A............... (13,072,480) (22,241,844) (4,322,551) (6,683,552) (26,915,777) (37,598,231)
Class B............... (103,514) (117,765) (21,067) (40,486) (395,781) (119,553)
------------ ------------ ----------- ----------- ------------ ------------
Net increase (decrease)
in net assets resulting
from capital share
transactions:
Class A............... (14,271) (3,154,542) (1,707,691) (1,299,735) (9,314,254) (8,940,083)
Class B............... 1,298,302 1,571,408 462,625 649,167 1,731,884 2,195,963
------------ ------------ ----------- ----------- ------------ ------------
Net increase (decrease)
in net assets........... (4,950,394) 14,260,740 (2,970,993) 4,058,936 (16,063,251) 12,246,810
NET ASSETS:
Beginning of period..... 187,444,586 173,183,846 54,438,059 50,379,123 259,413,299 247,166,489
------------ ------------ ----------- ----------- ------------ ------------
End of period........... $182,494,192 $187,444,586 $51,467,066 $54,438,059 $243,350,048 $259,413,299
============ ============ =========== =========== ============ ============
</TABLE>
(1) For the six months ended June 30, 1996.
(2) For the year ended December 31, 1995.
(3) For the period May 20, 1996 (inception of operations) to June 30, 1996.
(4) For the period April 15, 1996 (inception of operations) to June 30, 1996.
The accompanying notes are an integral part of these financial statements.
32
<PAGE> 34
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
---------------------------------------------------------------------------------------------------
Strategic
Income Fund Balanced Fund Growth and Income Fund
---------------------------------------------------------------------------------------------------
1996(3) 1996(1) 1995(2) 1996(1) 1995(2)
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income... $ 45,285 $ 379,290 $ 493,870 $ 580,901 $ 1,024,549
Net realized gain (loss)
of investments and
foreign currency........ (58,730) 424,525 117,425 3,894,036 10,301,995
Net unrealized
appreciation
(depreciation) of
investments and foreign
currency................ 22,717 467,146 2,150,242 8,065,261 11,693,590
---------- ----------- ----------- ------------ -----------
Net increase (decrease)
in net assets resulting
from operations......... 9,272 1,270,961 2,761,537 12,540,198 23,020,134
---------- ----------- ----------- ------------ -----------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A............... (45,264) (329,025) (458,093) (554,564) (999,924)
Class B............... (21) (48,258) (35,786) (26,315) (24,622)
Distributions from net
realized gain of
investments:
Class A............... 0 0 (65,959) 0 (9,735,132)
Class B............... 0 0 (7,926) 0 (447,924)
Distributions in excess
of net realized gain of
investments:
Class A............... 0 0 0 0 0
Class B............... 0 0 0 0 0
---------- ----------- ----------- ------------ -----------
Total distributions:
Class A............... (45,264) (329,025) (524,052) (554,564) (10,735,056)
Class B............... (21) (48,258) (43,712) (26,315) (472,546)
---------- ----------- ----------- ------------ -----------
CAPITAL SHARE
TRANSACTIONS: (NOTE 4)
Proceeds from shares
sold:
Class A............... 4,997,500 9,005,021 3,217,552 27,908,642 22,798,866
Class B............... 2,500 2,061,676 968,596 4,468,643 2,339,256
Proceeds from shares
issued in reinvestment
of net investment income
dividends and capital
gain dividends:
Class A............... 0 292,079 393,011 542,799 10,527,649
Class B............... 0 44,213 40,988 25,978 470,219
Cost of shares redeemed:
Class A............... 0 (2,951,627) (1,756,631) (10,731,835) (21,480,206)
Class B............... 0 (80,660) (118,564) (143,319) (165,167)
---------- ----------- ----------- ------------ -----------
Net increase (decrease)
in net assets resulting
from capital share
transactions:
Class A............... 4,997,500 6,345,473 1,853,932 17,719,606 11,846,309
Class B............... 2,500 2,025,229 891,020 4,351,302 2,644,308
---------- ----------- ----------- ------------ -----------
Net increase (decrease)
in net assets........... 4,963,987 9,264,380 4,938,725 34,030,227 26,303,149
NET ASSETS:
Beginning of period..... 0 15,179,158 10,240,433 97,353,115 71,049,966
---------- ----------- ----------- ------------ -----------
End of period........... $4,963,987 $24,443,538 $15,179,158 $131,383,342 $97,353,115
========== =========== =========== ============ ===========
<CAPTION>
------------------------------------------------------
Global Growth
Strategic Growth Fund Fund
------------------------------------------------------
1996(1) 1995(2) 1996(4)
(unaudited) (unaudited)
<S> <C> <C> <C>
OPERATIONS:
Net investment income... $ 74,735 $ 93,830 $ 10,859
Net realized gain (loss)
of investments and
foreign currency........ 1,302,980 418,779 (25,715)
Net unrealized
appreciation
(depreciation) of
investments and foreign
currency................ 239,971 1,756,747 124,003
----------- ----------- ----------
Net increase (decrease)
in net assets resulting
from operations......... 1,617,686 2,269,356 109,147
----------- ----------- ----------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A............... 0 (82,228) 0
Class B............... 0 (11,605) 0
Distributions from net
realized gain of
investments:
Class A............... 0 (128,423) 0
Class B............... 0 (24,463) 0
Distributions in excess
of net realized gain of
investments:
Class A............... 0 (1,673) 0
Class B............... 0 (319) 0
----------- ----------- ----------
Total distributions:
Class A............... 0 (212,324) 0
Class B............... 0 (36,387) 0
----------- ----------- ----------
CAPITAL SHARE
TRANSACTIONS: (NOTE 4)
Proceeds from shares
sold:
Class A............... 4,904,232 4,447,212 6,032,277
Class B............... 1,754,348 1,845,831 949,915
Proceeds from shares
issued in reinvestment
of net investment income
dividends and capital
gain dividends:
Class A............... 0 164,469 0
Class B............... 0 36,136 0
Cost of shares redeemed:
Class A............... (3,028,574) (721,926) (46,470)
Class B............... (36,048) (35,686) 0
----------- ----------- ----------
Net increase (decrease)
in net assets resulting
from capital share
transactions:
Class A............... 1,875,658 3,889,755 5,985,807
Class B............... 1,718,300 1,846,281 949,915
----------- ----------- ----------
Net increase (decrease)
in net assets........... 5,211,644 7,756,681 7,044,869
NET ASSETS:
Beginning of period..... 14,555,345 6,798,664 0
----------- ----------- ----------
End of period........... $19,766,989 $14,555,345 $7,044,869
=========== =========== ==========
</TABLE>
33
<PAGE> 35
<TABLE>
<CAPTION>
Financial Highlights selected data for a share outstanding throughout each period
- -----------------------------------------------------------------------------------------------------------------------
Money Funds
------------------------------------------------------------------------------------
U.S. Treasury Money Fund
Class A Class B
------------------------------------------------------------------------------------
1996(1) 1995(2) 1994(2) 1993(2) 1992(3) 1996(1) 1995(2) 1994(4)
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............ 0.023 0.050 0.036 0.030 0.023 0.021 0.044 0.018
Net gain or loss on securities
(both realized and unrealized).. 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations....................... 0.023 0.050 0.036 0.030 0.023 0.021 0.044 0.018
------ ------ ------ ------ ------ ------ ------ ------
<CAPTION>
LESS DISTRIBUTIONS:
Dividends (from net investment
income).......................... (0.023) (0.050) (0.036) (0.030) (0.023) (0.021) (0.044) (0.018)
Distributions (from realized
capital gains)................... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Distributions (in excess of
realized gains).................. 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
------ ------ ------ ------ ------ ------ ------ ------
Total distributions.............. (0.023) (0.050) (0.036) (0.030) (0.023) (0.021) (0.044) (0.018)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ====== ====== ======
Total return(6).................... 2.36% 5.13% 3.67% 3.03% 2.32% 2.09% 4.45% 3.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)........................ $59,919 $51,385 $33,448 $14,168 $ 7,632 $ 115 $ 113 $ 28
Ratio of expenses to average
net assets (annualized)(8)....... 0.45% 0.64% 0.46% 0.15% 0.00% 1.04% 1.24% 1.13%
Ratio of net investment income to
average net assets
(annualized)..................... 4.69% 4.99% 3.75% 2.98% 3.32% 4.10 4.34% 3.71%
Portfolio turnover rate
(Note 5)....................... -- -- -- -- -- -- -- --
Average commission rate
paid(7)........................ -- -- -- -- -- -- -- --
- ---------------------------------------------------------------------------
California Municipal
Money Fund
Class A
- ---------------------------------------------------------------------------
1996(1) 1995(2) 1994(2)
(unaudited)
<S> <C> <C> <C>
Net asset value, beginning of
period........................... $ 1.00 $ 1.00 $ 1.00
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............ 0.014 0.032 0.024
Net gain or loss on securities
(both realized and unrealized)... 0.000 0.000 0.000
------- ------- -------
Total from investment
operations....................... 0.014 0.032 0.024
------- ------- -------
LESS DISTRIBUTIONS:
<S> <C> <C> <C>
Dividends (from net investment
income).......................... (0.014) (0.032) (0.024)
Distributions (from realized
capital gains)................... 0.000 0.000 0.000
Distributions (in excess of
realized gains).................. 0.000 0.000 0.000
------ ------ ------
Total distributions.............. (0.014) (0.032) (0.024)
------ ------ ------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00
====== ====== ======
Total return(6).................... 1.38% 3.22% 2.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)........................ $37,469 $39,439 $42,979
Ratio of expenses to average
net assets (annualized)(8)....... 0.63% 0.67% 0.46%
Ratio of net investment income to
average net assets
(annualized)..................... 2.74% 3.18% 2.44%
Portfolio turnover rate
(Note 5)....................... -- -- --
Average commission rate
paid(7)........................ -- -- --
- ----------------------------------
</TABLE>
(1) For the six months ended June 30.
(2) For the year ended December 31.
(3) For the period May 1, 1992 (inception of operations) to December 31, 1992.
(4) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(5) For the period June 1, 1993 (effective date of registration) to December 31,
1993.
(6) Total returns assume purchase at net asset value (without sales charge) at
the beginning of each period. Returns for periods less than a full year
are aggregate (non-annualized) returns.
(7) Initiating with fiscal year 1996, the Funds are required to disclose their
average commission rate per share for purchases and sales of equity
securities.
(8) Effective January 10, 1990, the Distributor and Adviser for the Atlas Funds
agreed to temporarily cap (or waive) their management and 12b-1 fees and to
absorb other operating expenses. Had such action not been taken, the ratio
of expenses to average net assets (annualized) would have been as follows:
<TABLE>
<CAPTION>
Class A
Period Ended 1996 1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
U.S. Treasury Money Fund............................ 1.02% 1.05% 1.08% 1.10% 1.37% NA
California Municipal Money Fund..................... 1.00% 1.00% 1.00% 0.98% 1.03% 1.13%
National Municipal Money Fund....................... 1.33% 1.29% 1.25% 1.28% 1.35% 1.51%
California Insured Intermediate Municipal Fund...... 1.06% 1.11% 1.11% 1.26% NA NA
<CAPTION>
Class B
Period Ended 1996 1995 1994
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Treasury Money Fund............................ 3.25% 3.25% 3.25%
California Municipal Money Fund..................... NA NA NA
National Municipal Money Fund....................... NA NA NA
California Insured Intermediate Municipal Fund...... 3.25% 3.25% 3.25%
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE> 36
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
California Municipal National Municipal Money Fund
Money Fund (continued)
Class A (continued) Class A
-----------------------------------------------------------------------------------------------
1993(2) 1992(2) 1991(2) 1996(1) 1995(2) 1994(2) 1993(2) 1992(2) 1991(2)
(unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------- ------- ------- -------
Income From Investment Operations:
Net investment income..... 0.021 0.027 0.045 0.015 0.032 0.026 0.022 0.029 0.048
Net gain or loss on securities
(both realized and
unrealized).............. 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
------- ------- ------- ------- ------- ------- ------- ------- -------
Total from investment
operations............... 0.021 0.027 0.045 0.015 0.032 0.026 0.022 0.029 0.048
------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
Dividends (from net investment
income)................................ (0.021) (0.027) (0.045) (0.015) (0.032) (0.026) (0.022) (0.029) (0.048)
Distributions (from realized capital
gains)................................. 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Distributions (from excess of realized
gains)................................. 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
------- ------- ------ ------ ------ ------ ------ ------ ------
Total distributions.................... (0.021) (0.027) (0.045) (0.015) (0.032) (0.026) (0.022) (0.029) (0.048)
------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======= ======= ======= =======
Total return(6)......................... 2.13% 2.75% 4.61% 1.46% 3.26% 2.60% 2.25% 2.94% 4.87%
Ratios/Supplemental Data:
Net assets, end of period (000's).... $ 45,784 $55,890 $ 59,007 $ 7,374 $ 7,860 $10,110 $ 9,424 $ 8,139 $ 9,816
Ratio of expenses to average
net assets (annualized)(8)............ 0.48% 0.46% 0.00% 0.67% 0.75% 0.49% 0.55% 0.54% 0.00%
Ratio of net investment income to
average net assets (annualized)........ 2.10% 2.73% 4.47% 2.92% 3.21% 2.57% 2.23% 2.92% 4.71%
Portfolio turnover rate (Note 5)....... -- -- -- -- -- -- -- -- --
Average commission rate paid(7)........ -- -- -- -- -- -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
Bond Funds
---------------------------------------------------------------------------
California Insured Intermediate Municipal Fund
Class A Class B
---------------------------------------------------------------------------
1996(1) 1995(2) 1994(2) 1993(5) 1996(1) 1995(2) 1994(4)
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................................ $ 10.37 $ 9.64 $ 10.48 $ 10.01 $ 10.37 $ 9.64 $ 9.91
-------- ------- -------- ------- -------- ------- -------
Income From Investment Operations:
Net investment income.................... 0.20 0.40 0.42 0.26 0.17 0.34 0.17
Net gain or loss on securities
(both realized and
unrealized)............................. (0.18) 0.73 (0.84) 0.47 (0.18) 0.73 (0.27)
-------- ------- -------- ------- -------- ------- -------
Total from investment
operations............................... 0.02 1.13 (0.42) 0.73 (0.01) 1.07 (0.10)
-------- ------- -------- ------- -------- ------- -------
Less distributions:
Dividends (from net investment
income).................................. (0.20) (0.40) (0.42) (0.26) (0.17) (0.34) (0.17)
Distributions (from realized capital
gains)................................... 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions (from excess of realized
gains)................................... 0.00 0.00 0.00 0.00 0.00 0.00 0.00
-------- ------- -------- ------- -------- ------- -------
Total distributions...................... (0.20) (0.40) (0.42) (0.26) (0.17) (0.34) (0.17)
-------- ------- -------- ------- -------- ------- -------
Net asset value, end of period............. $ 10.19 $ 10.37 $ 9.64 $ 10.48 $10.19 $10.37 $ 9.64
======== ======= ======== ======= ======== ======= =======
Total return(6)............................ 0.21% 11.84% -4.10% 7.31% -0.07% 11.26% -1.02%
Ratios/Supplemental Data:
Net assets, end of period (000's)......... $ 20,102 $24,582 $23,634 $24,235 $ 471 $ 443 $ 227
Ratio of expenses to average
net assets (annualized)(8)................ 0.80% 0.77% 0.40% 0.32% 1.39% 1.30% 1.08%
Ratio of net investment income to
average net assets (annualized)........... 3.95% 3.90% 4.16% 4.25% 3.37% 3.37% 3.62%
Portfolio turnover rate (Note 5).......... 25.09% 59,28% 31.48% 5.73% 25.09% 59.28% 31.48%
Average commission rate paid(7)........... -- -- -- -- -- -- --
</TABLE>
35
<PAGE> 37
<TABLE>
<CAPTION>
Financial Highlights selected data for a share outstanding throughout each period
- -----------------------------------------------------------------------------------------------
Bond Funds
------------------------------------------------------------------------
National Insured Intermediate Municipal Fund
Class A Class B
------------------------------------------------------------------------
1996(1) 1995(2) 1994(2) 1993(3) 1996(1) 1995(2) 1994(4)
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period............ $ 10.37 $ 9.64 $ 10.48 $ 10.02 $10.38 $ 9.65 $ 9.91
------ ------ ------ ------ ----- ----- -----
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income............ 0.21 0.41 0.42 0.26 0.18 0.36 0.18
Net gain or loss
on securities
(both realized and
unrealized)....... (0.21) 0.73 (0.84) 0.46 (0.22) 0.73 (0.26)
------ ------ ------ ------ ----- ----- -----
Total from
investment
operations........ 0.00 1.14 (0.42) 0.72 (0.04) 1.09 (0.08)
------ ------ ------ ------ ----- ----- -----
LESS DISTRIBUTIONS:
Dividends (from
net investment
income)........... (0.21) (0.41) (0.42) (0.26) (0.18) (0.36) (0.18)
Distributions
(from realized
capital gains).... 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions (in
excess of realized
gains)............ 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ----- ----- -----
Total
distributions..... (0.21) (0.41) (0.42) (0.26) (0.18) (0.36) (0.18)
------ ------ ------ ------ ----- ----- -----
Net asset value, end
of period......... $ 10.16 $ 10.37 $ 9.64 $ 10.48 $10.16 $10.38 $ 9.65
====== ====== ====== ====== ===== ===== =====
Total return(6)..... -0.02% 12.01% -4.05% 7.25% -0.39% 11.43% -0.87%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000)...... $13,756 $15,782 $16,224 $15,535 $ 284 $ 284 $ 186
Ratio of expenses
to average
net assets
(annualized)(8)... 0.78% 0.77% 0.43% 0.35% 1.37% 1.29% 1.09%
Ratio of net
investment income
to average
net assets
(annualized)...... 4.10% 4.06% 4.22% 4.28% 3.52% 3.54% 3.72%
Portfolio turnover
rate (Note 5)..... 38.73% 84.85% 32.26% 0.00% 38.73% 84.85% 32.26%
Average commission
rate paid(7)...... -- -- -- -- -- -- --
- ------------------------------------------------------
Bond Funds
-------------------------------
U.S. Government
Intermediate Fund
Class A
-------------------------------
1996(1) 1995(2) 1994(2)
(unaudited)
<S> <C> <C> <C>
Net asset value,
beginning of
period............ $ 9.76 $ 9.32 $ 10.03
------ ------ ------
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income............ 0.27 0.48 0.46
Net gain or loss
on securities
(both realized and
unrealized)....... (0.29) 0.44 (0.71)
------ ------ ------
Total from
investment
operations........ (0.02) 0.92 (0.25)
------ ------ ------
LESS DISTRIBUTIONS:
Dividends (from
net investment
income)........... (0.27) (0.48) (0.46)
Distributions
(from realized
capital gains).... 0.00 0.00 0.00
Distributions (in
excess of realized
gains)............ 0.00 0.00 0.00
------ ------ ------
Total
distributions..... (0.27) (0.48) (0.46)
------ ------ ------
Net asset value, end
of period......... $ 9.47 $ 9.76 $ 9.32
====== ====== ======
Total return(6)..... -0.15% 10.12% -2.51%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000)...... $7,792 $8,209 $9,699
Ratio of expenses
to average
net assets
(annualized)(8)... 0.48% 0.69% 0.43%
Ratio of net
investment income
to average
net assets
(annualized)...... 5.77% 5.03% 4.80%
Portfolio turnover
rate (Note 5)..... 42.97% 82.88% 55.09%
Average commission
rate paid(7)...... -- -- --
- --------------------
</TABLE>
(1) For the six months ended June 30.
(2) For the year ended December 31.
(3) For the period June 1, 1993 (effective date of registration) to December 31,
1993.
(4) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(5) For the period October 5, 1992 (inception of operations) to December 31,
1992.
(6) Total returns assume purchase at net asset value (without sales charge) at
the beginning of each period. Returns for periods less than a full year are
aggregate (non-annualized) returns.
(7) Initiating with fiscal year 1996, the Funds are required to disclose their
average commission rate per share for purchases and sales of equity
securities.
(8) Effective January 10, 1990, the Distributor and Adviser for the Atlas Funds
agreed to temporarily cap (or waive) their management and 12b-1 fees and to
absorb other operating expenses. Had such action not been taken, the ratio
of expenses to average net assets (annualized) would have been as follows:
<TABLE>
<CAPTION>
Class A Class B
Period Ended 1996 1995 1994 1993 1992 1991 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
National Insured Intermediate Municipal
Fund................................. 1.10% 1.19% 1.19% 1.39% NA NA 3.25% 3.25% 3.25%
U.S. Government Intermediate Fund...... 1.21% 1.32% 1.28% 1.26% 2.09% NA 3.25% 3.25% 3.25%
California Municipal Bond Fund......... 0.96% 0.96% 0.97% 0.98% 1.04% 1.14% 1.94% 3.24% 3.25%
</TABLE>
The accompanying notes are an integral part of these financial statements.
36
<PAGE> 38
<TABLE>
<CAPTION>
-----------------------------------------------------
U.S. Government Intermediate Fund (continued)
Class A (continued) Class B
-----------------------------------------------------
1993(2) 1992(5) 1996(1) 1995(2) 1994(4)
(unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period............ $ 9.69 $ 10.00 $ 9.76 $ 9.32 $ 9.48
------ ------ ------ ------ -----
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income............ 0.51 0.13 0.25 0.43 0.19
Net gain or loss
on securities
(both realized and
unrealized)....... 0.41 (0.31) (0.29) 0.44 (0.16)
------ ------ ------ ------ -----
Total from
investment
operations........ 0.92 (0.18) (0.04) 0.87 0.03
------ ------ ------ ------ -----
LESS DISTRIBUTIONS:
Dividends (from
net investment
income)........... (0.51) (0.13) (0.25) (0.43) (0.19)
Distributions
(from realized
capital gains).... 0.00 0.00 0.00 0.00 0.00
Distributions (in
excess of realized
gains)............ 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ -----
Total
distributions..... (0.58) (0.13) (0.25) (0.43) (0.19)
------ ------ ------ ------ -----
Net asset value, end
of period......... $10.03 $ 9.69 $ 9.47 $ 9.76 $ 9.32
====== ====== ====== ====== =====
Total return(6)..... 9.64% -1.83% -0.44% 9.54% 0.36%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000)...... $8,930 $3,235 $ 462 $ 426 $ 321
Ratio of expenses
to average
net assets
(annualized)(8)... 0.23% 0.00% 1.07% 1.21% 1.08%
Ratio of net
investment income
to average
net assets
(annualized)...... 4.98% 5.50% 5.18% 4.53% 3.24%
Portfolio turnover
rate (Note 5)..... 37.80% 0.00% 42.97% 82.88% 55.09%
Average commission
rate paid(7)...... -- -- -- -- --
- --------------------
---------------------------------------------------------------------------------------------------
California Municipal Bond Fund
Class A Class B
---------------------------------------------------------------------------------------------------
1996(1) 1995(2) 1994(2) 1993(2) 1992(2) 1991(2) 1996(1) 1995(2) 1994(4)
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period............ $ 11.26 $ 10.31 $ 11.56 $ 10.74 $ 10.64 $ 10.12 $11.26 $10.32 $10.74
------ ------ ------ ------ ------- ------ ------ ----- -----
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income............ 0.26 0.54 0.59 0.59 0.60 0.66 0.24 0.48 0.25
Net gain or loss
on securities
(both realized and
unrealized)....... (0.38) 0.95 (1.25) 0.83 0.21 0.56 (0.37) 0.94 (0.42)
------ ------ ------ ------ ----- ----- ------ ------ ------
Total from
investment
operations........ (0.12) 1.49 (0.66) 1.42 0.81 1.22 (0.13) 1.42 (0.17)
------ ------ ------ ------ ----- ----- ------ ----- ------
LESS DISTRIBUTIONS:
Dividends (from
net investment
income)........... (0.26) (0.54) (0.59) (0.59) (0.60) (0.66) (0.24) (0.48) (0.25)
Distributions
(from realized
capital gains).... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions (in
excess of realized
gains)............ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ----- ----- ------ ------ ------
Total
distributions..... (0.26) (0.54) (0.59) (0.60) (0.71) (0.70) (0.24) (0.48) (0.25)
------ ------ ------ ------ ----- ----- ------ ------ ------
Net asset value, end
of period......... $ 10.88 $ 11.26 $ 10.31 $ 11.56 $ 10.74 $ 10.64 $ 10.89 $ 11.26 $ 10.32
====== ====== ====== ====== ===== ===== ====== ====== ======
Total return(6)..... -1.02% 14.76% -5.83% 13.52% 7.86% 12.53% -1.18% 14.05% -1.59%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000)...... $178,148 $184,283 $171,769 $197,394 $141,108 $106,592 $4,346 $3,162 $1,416
Ratio of expenses
to average
net assets
(annualized)(8)... 0.96% 0.93% 0.57% 0.53% 0.54% 0.00% 1.46% 1.46% 1.28%
Ratio of net
investment income
to average
net assets
(annualized)...... 4.84% 4.98% 5.43% 5.25% 5.66% 6.43% 4.35% 4.42% 4.91%
Portfolio turnover
rate (Note 5)..... 20.45% 25.90% 30.32% 7.44% 46.55% 30.61% 20.45% 25.90% 30.32%
Average commission
rate paid(7)...... -- -- -- -- -- -- -- -- --
- --------------------
</TABLE>
37
<PAGE> 39
<TABLE>
<CAPTION>
Financial Highlights selected data for a share outstanding throughout each period
- ---------------------------------------------------------------------------------------------------------------------
Bond Funds
--------------------------------------------------------------------------
National Municipal Bond Fund
Class A
--------------------------------------------------------------------------
1996(1) 1995(2) 1994(2) 1993(2) 1992(2) 1991(2)
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 11.39 $ 10.41 $ 11.61 $ 10.80 $ 10.61 $ 10.03
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................... 0.25 0.53 0.58 0.60 0.60 0.68
Net gain or loss on securities (both
realized and unrealized)................ (0.36) 0.98 (1.20) 0.82 0.32 0.60
------ ------ ------ ------ ------ ------
Total from investment operations........ (0.11) 1.51 (0.62) 1.42 0.92 1.28
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends (from net investment
income)................................. (0.25) (0.53) (0.58) (0.60) (0.60) (0.68)
Distributions (from realized capital
gains).................................. 0.00 0.00 0.00 (0.01) (0.13) (0.02)
Distributions (in excess of realized
gains).................................. 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------ ------
Total distributions..................... (0.25) (0.53) (0.58) (0.61) (0.73) (0.70)
------ ------ ------ ------ ------ ------
Net asset value, end of period............ $ 11.03 $ 11.39 $ 10.41 $ 11.61 $ 10.80 $ 10.61
====== ====== ======= ====== ====== ======
Total return(5)........................... -0.93% 14.76% -5.41% 13.39% 8.97% 13.22%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)......... $49,990 $53,387 $50,037 $57,590 $39,463 $26,432
Ratio of expenses to average
net assets (annualized)(7).............. 1.01% 0.91% 0.57% 0.50% 0.54% 0.00%
Ratio of net investment income to
average net assets (annualized)......... 4.58% 4.79% 5.35% 5.29% 5.61% 6.59%
Portfolio turnover rate(Note 5)......... 34.53% 53.43% 37.52% 3.72% 39.20% 14.47%
Average commission rate paid(6)......... -- -- -- -- -- --
<CAPTION>
-----------------------------------
Bond Funds
-----------------------------------
National Municipal Bond Fund
Class B
-----------------------------------
1996(1) 1995(2) 1994(3)
95(2) 1994(3) (unaudited)
<S> <C> <C> <C>
Net asset value, beginning of period...... $11.39 $10.41 $10.76
----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................... 0.23 0.47 0.24
Net gain or loss on securities (both
realized and unrealized)................ (0.36) 0.98 (0.35)
----- ----- -----
Total from investment operations........ (0.13) 1.45 (0.11)
----- ----- -----
LESS DISTRIBUTIONS:
Dividends (from net investment
income)................................. (0.23) (0.47) (0.24)
Distributions (from realized capital
gains).................................. 0.00 0.00 0.00
Distributions (in excess of realized
gains).................................. 0.00 0.00 0.00
------ ------ ------
Total distributions..................... (0.23) (0.47) (0.24)
------ ------ ------
Net asset value, end of period............ $11.03 $11.39 $10.41
====== ====== ======
Total return(5)........................... -1.18% 14.16% -0.99%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)......... $1,477 $1,051 $ 342
Ratio of expenses to average
net assets (annualized)(7).............. 1.51% 1.44% 1.28%
Ratio of net investment income to
average net assets (annualized)......... 4.10% 4.22% 4.72%
Portfolio turnover rate(Note 5)......... 34.53% 54.30% 37.52%
Average commission rate paid(6)......... -- -- --
</TABLE>
(1) For the six months ended June 30.
(2) For the year ended December 31.
(3) For the period July 1, 1994 (inception of
operations) to December 31, 1994.
(4) For the period May 20, 1996 (inception of
operations) to June 30, 1996.
(5) Total returns assume purchase at net asset value
(without sales charge) at the beginning of each period.
Returns for periods less than a full year are aggregate
(non-annualized) returns.
(6) Initiating with fiscal year 1996, the Funds are
required to disclose their average commission rate
per share for purchases and sales of equity securities.
(7) Effective January 10, 1990, the Distributor and
Adviser for the Atlas Funds agreed to temporarily cap
(or waive) their management and 12b-1 fees and to absorb
other operating expenses. Had such action not
been taken, the ratio of expenses to average net assets
(annualized) would have been as follows:
<TABLE>
<CAPTION>
Class A
Period Ended 1996 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
National Municipal Bond Fund........................ 1.01% 1.05% 1.06% 1.06% 1.16% 1.33%
U.S. Government and Mortgage Securities Fund........ 1.01% 1.04% 1.05% 1.05% 1.12% 1.20%
Strategic Income Fund............................... 3.25% NA NA NA NA NA
<CAPTION>
Class B
Period Ended 1996 1995 1994
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
National Municipal Bond Fund........................ 2.87% 3.25% 3.25%
U.S. Government and Mortgage Securities Fund........ 1.87% 2.27% 3.25%
Strategic Income Fund............................... 3.25% NA NA
</TABLE>
The accompanying notes are an integral part of these financial statements.
38
<PAGE> 40
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
U.S. Government and Mortgage Securities Fund
Class A
- --------------------------------------------------------------------------------------------------------------------------------
1996(1) 1995(2) 1994(2) 1993(2) 1992(2) 1991(2)
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 10.30 $ 9.55 $ 10.60 $ 10.57 $ 10.59 $ 10.02
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................... 0.33 0.69 0.70 0.74 0.82 0.91
Net gain or loss on securities (both
realized and unrealized)................ (0.34) 0.75 (1.05) 0.03 (0.02) 0.57
------- ------- ------- ------- ------- -------
Total from investment operations........ (0.01) 1.44 (0.35) 0.77 0.80 1.48
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends (from net investment
income)................................. (0.33) (0.69) (0.70) (0.74) (0.82) (0.91)
Distributions (from realized capital
gains).................................. 0.00 0.00 0.00 0.00 0.00 0.00
Distributions (in excess of realized
gains).................................. 0.00 0.00 0.00 0.00 0.00 0.00
------- ------- ------- ------- ------- -------
Total distributions..................... (0.33) (0.69) (0.70) (0.74) (0.82) (0.91)
------- ------- ------- ------- ------- -------
Net asset value, end of period............ $ 9.96 $ 10.30 $ 9.55 $ 10.60 $ 10.57 $ 10.59
======= ======= ======= ======= ======= =======
Total return(5)........................... -0.07% 15.50% -3.30% 7.49% 7.85% 15.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)......... $237,967 $255,614 $245,715 $311,089 $209,593 $114,130
Ratio of expenses to average
net assets (annualized)(7).............. 1.01% 1.02% 0.80% 0.78% 0.60% 0.00%
Ratio of net investment income to
average net assets (annualized)......... 6.61% 6.90% 7.05% 6.93% 7.74% 8.79%
Portfolio turnover rate(Note 5)......... 49.37% 48.39% 16.33% 25.63% 25.50% 4.35%
Average commission rate paid(6)......... -- -- -- -- -- --
<CAPTION>
Strategic Income Fund
Class B Class A Class B
- --------------------------------------------------------------------------------------------------------------------------------
1996(1) 1995(2) 1994(3) 1996(4) 1996(4)
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $10.30 $ 9.55 $ 9.80 $ 5.00 $ 5.00
----- ----- ----- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................... 0.31 0.64 0.32 0.04 0.05
Net gain or loss on securities (both
realized and unrealized)................ (0.34) 0.75 (0.25) (0.04) (0.04)
----- ----- ----- ------ ------
Total from investment operations........ (0.03) 1.39 0.07 0.00 0.01
----- ----- ----- ------ ------
LESS DISTRIBUTIONS:
Dividends (from net investment
income)................................. (0.31) (0.64) (0.32) (0.04) (0.05)
Distributions (from realized capital
gains).................................. 0.00 0.00 0.00 0.00 0.00
Distributions (in excess of realized
gains).................................. 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ------ ------
Total distributions..................... (0.31) (0.64) (0.32) (0.04) (0.05)
----- ----- ----- ------ ------
Net asset value, end of period............ $ 9.96 $10.30 $ 9.55 $ 4.96 $ 4.96
===== ===== ===== ====== ======
Total return(5)........................... -0.31% 14.93% 0.69% 0.07% -0.58%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)......... $5,383 $3,799 $1,451 $ 2 $ 4,962
Ratio of expenses to average
net assets (annualized)(7).............. 1.51% 1.53% 1.43% 0.35% 0.03%
Ratio of net investment income to
average net assets (annualized)......... 6.13% 6.34% 6.82% 7.74% 7.98%
Portfolio turnover rate(Note 5)......... 49.37% 48.39% 16.33% 132.78% 132.78%
Average commission rate paid(6)......... -- -- -- -- --
</TABLE>
39
<PAGE> 41
<TABLE>
<CAPTION>
Financial Highlights selected data for a share outstanding throughout each period
- -----------------------------------------------------------------------------------------------------------------------------
Stock Funds
---------------------------------------------------------------------------------------------------------
Balanced Fund Growth and Income Fund
Class A Class B Class A
---------------------------------------------------------------------------------------------------------
1996(1) 1995(2) 1994(2) 1993(3) 1996(1) 1995(2) 1994(4) 1996(1) 1995(2) 1994(2)
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period.......... $ 11.19 $ 9.23 $ 9.85 $10.00 $ 11.17 $ 9.22 $ 9.41 $ 15.91 $ 13.52 $ 14.01
------ ------ ----- ----- ------ ----- ----- ------- ------ ------
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income (loss).. 0.20 0.42 0.44 0.09 0.17 0.35 0.10 0.08 0.20 0.16
Net gain or loss
on securities
(both realized and
unrealized)..... 0.56 2.02 (0.62) (0.15) 0.57 2.03 (0.07) 1.80 4.26 (0.34)
------ ------ ----- ----- ------ ----- ----- ------- ------ ------
Total from
investment
operations.... 0.76 2.44 (0.18) (0.06) 0.74 2.38 0.03 1.88 4.46 (0.18)
------ ------ ----- ----- ------ ----- ----- ------- ------ ------
LESS DISTRIBUTIONS:
Dividends (from
net investment
income)....... (0.20) (0.42) (0.44) (0.09) (0.18) (0.37) (0.22) (0.08) (0.20) (0.16)
Distributions
(from realized
capital gains)... 0.00 (0.06) 0.00 0.00 0.00 (0.06) 0.00 0.00 (1.87) (0.12)
Distributions
(in excess of
realized
gains).......... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.03)
------ ------ ----- ----- ------ ----- ----- ------- ------ ------
Total
distributions... (0.20) (0.48) (0.44) (0.09) (0.18) (0.43) (0.22) (0.08) (2.07) (0.31)
------ ------ ----- ----- ------ ----- ----- ------- ------ ------
Net asset value,
end of period... $ 11.75 $ 11.19 $ 9.23 $ 9.85 $ 11.73 $11.17 $ 9.22 $ 17.71 $ 15.91 $ 13.52
====== ====== ===== ===== ====== ===== ===== ======= ====== ======
Total return(6)... 6.80% 26.76% -1.87% (0.62)% 6.61% 26.08% 0.25% 11.86% 33.06% -1.24%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end
of period
(000)......... $20,679 $13,547 $9,654 $5,638 $ 3,765 $1,632 $ 586 $122,074 $93,061 $69,590
Ratio of
expenses to
average net
assets
(annualized)(8)... 1.30% 1.48% 0.80% 0.00% 1.80% 1.99% 1.48% 1.19% 1.24% 1.04%
Ratio of net
investment
income to
average net
assets
(annualized).... 3.85% 4.15% 4.85% 5.02% 3.38% 3.66% 4.43% 1.04% 1.26% 1.21%
Portfolio
turnover rate
(Note 5)........ 17.67% 25.84% 29.19% 0.00% 17.67% 25.84% 29.19% 32.17% 125.28% 123.64%
Average
commission
rate paid(7).. $0.0595 -- -- -- $0.0595 -- -- $ 0.0594 -- --
- ------------------
</TABLE>
(1) For the six months ended June 30.
(2) For the year ended December 31.
(3) For the period October 1, 1993 (inception of operations) to December 31,
1993.
(4) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(5) For the period April 30, 1996 (effective date of registration) to June 30,
1996.
(6) Total returns assume purchase at net asset value (without sales charge) at
the beginning of each period.
Returns for periods less than a full year are aggregate (non-annualized)
returns.
(7) Initiating with fiscal year 1996, the Funds are required to disclose their
average commission rate
per share for purchases and sales of equity securities.
(8) Effective January 10, 1990, the Distributor and Adviser for the Atlas Funds
agreed to temporarily cap (or waive) their management and 12b-1 fees and to
absorb other operating expenses. Had such action not been taken, the ratio
of expenses to average net assets (annualized) would have been as follows:
<TABLE>
<CAPTION>
Class A Class B
Period Ended 1996 1995 1994 1993 1992 1991 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balanced Fund................................. 1.30% 1.53% 1.56% 2.04% NA NA 2.42% 3.25% 3.25%
Growth and Income Fund........................ 1.19% 1.24% 1.28% 1.36% 1.45% 1.66% 1.94% 2.39% 3.25%
Strategic Growth Fund......................... 1.33% 1.65% 1.74% 2.23% NA NA 2.24% 3.25% 3.25%
Global Growth Fund............................ 3.25% NA NA NA NA NA 3.25% NA NA
</TABLE>
The accompanying notes are an integral part of these financial statements.
40
<PAGE> 42
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
Growth and Income Fund (continued) Strategic Growth Fund
Class A (continued) Class B Class A
---------------------------------------------------------------------------------------------------------
1993(2) 1992(2) 1991(2) 1996(1) 1995(2) 1994(4) 1996(1) 1995(2) 1994(2) 1993(3)
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period............ $ 13.45 $ 13.52 $ 10.04 $ 15.89 $ 13.52 $ 13.04 $ 12.69 $ 10.00 $10.14 $10.00
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income
(loss).......... 0.22 0.25 0.31 0.05 0.10 0.02 0.00 0.10 0.11 0.05
Net gain or loss
on securities
(both
realized and
unrealized)........ 1.17 (0.07) 3.48 1.79 4.26 0.67 1.26 2.82 (0.14) 0.14
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
Total from
investment
operations....... 1.39 0.18 3.79 1.84 4.36 0.69 1.26 2.92 (0.03) 0.19
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
LESS
DISTRIBUTIONS:
Dividends (from
net investment
income).......... (0.22) (0.25) (0.31) (0.06) (0.12) (0.06) 0.00 (0.09) (0.11) (0.05)
Distributions
(from realized
capital
gains)............. (0.59) 0.00 0.00 0.00 (1.87) (0.12) 0.00 (0.14) 0.00 0.00
Distributions
(in excess of
realized
gains)............. (0.02) 0.00 0.00 0.00 0.00 (0.03) 0.00 0.00 0.00 0.00
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
Total
distributions...... (0.83) (0.25) (0.31) (0.06) (1.99) (0.21) 0.00 (0.23) (0.11) (0.05)
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
Net asset value,
end of period...... $ 14.01 $ 13.45 $ 13.52 $ 17.67 $ 15.89 $ 13.52 $ 13.95 $ 12.69 $10.00 $10.14
======= ======= ======= ======= ======= ======= ======= ======= ====== ======
Total return(6)...... 10.40% 1.40% 38.15% 11.60% 32.32% 5.32% 9.93% 29.14% -0.28% 1.94%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end
of period
(000)............ $59,392 $38,200 $20,084 $ 9,309 $ 4,292 $ 1,460 $15,420 $12,223 $6,471 $4,168
Ratio of
expenses to
average net
assets
(annualized)(8)...... 1.06% 0.87% 0.00% 1.68% 1.75% 1.66% 1.33% 1.62% 1.17% 0.00%
Ratio of net
investment
income to
average net
assets
(annualized)....... 1.59% 2.00% 3.44% 0.53% 0.84% 0.71% 0.94% 1.03% 1.25% 2.66%
Portfolio
turnover rate
(Note 5)........... 178.91% 116.14% 146.31% 32.17% 125.28% 123.64% 76.75% 73.32% 54.01% 6.41%
Average
commission
rate
paid(7).......... -- -- -- $0.0594 -- -- $0.0597 -- -- --
<CAPTION>
-----------------------------------------------------------------------
Strategic Growth Fund Global Growth Fund
Class B Class A Class B
-----------------------------------------------------------------------
1996(1) 1995(2) 1994(4) 1996(5) 1996(5)
(unaudited) (unaudited) (unaudited)
Net asset value,
beginning of
period............ $ 12.63 $ 9.98 $ 9.92 $ 10.14 $ 10.14
------- ------ ------ ------- -------
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income
(loss).......... 0.00 0.03 (0.05) 0.00 0.00
Net gain or loss
on securities
(both
realized and
unrealized)........ 1.21 2.82 0.21 0.12 0.11
------- ------ ------ ------- -------
Total from
investment
operations....... 1.21 2.85 0.16 0.12 0.11
------- ------ ------ ------- -------
LESS
DISTRIBUTIONS:
Dividends (from
net investment
income).......... 0.00 (0.06) (0.10) 0.00 0.00
Distributions
(from realized
capital
gains)............. 0.00 (0.14) 0.00 0.00 0.00
Distributions
(in excess of
realized
gains)............. 0.00 0.00 0.00 0.00 0.00
------- ------ ------ ------- -------
Total
distributions...... 0.00 (0.20) (0.10) 0.00 0.00
------- ------ ------ ------- -------
Net asset value,
end of period...... $ 13.84 $12.63 $ 9.98 $ 10.26 $ 10.25
======= ====== ====== ======= =======
Total return(6)...... 9.58% 28.58% 1.57% 1.18% 1.08%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end
of period
(000)............ $ 4,347 $2,332 $ 327 $ 6,087 $ 958
Ratio of
expenses to
average net
assets
(annualized)(8)...... 1.82% 2.14% 1.80% 1.66% 2.28%
Ratio of net
investment
income to
average net
assets
(annualized)....... 0.44% 0.56% 0.82% 1.48% 0.44%
Portfolio
turnover rate
(Note 5)........... 76.75% 73.32% 54.01% 10.69% 10.69%
Average
commission
rate
paid(7).......... $0.0597 -- -- $0.0024 $0.0024
</TABLE>
41
<PAGE> 43
Notes to Financial Statements June 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Atlas Assets, Inc., a Maryland corporation (the "Company"), is an open-end
management investment company registered under the Investment Company Act of
1940 ("1940 Act"), as amended, and offering fourteen portfolios. The Company
currently consists of the Atlas U.S. Treasury Money Fund, the Atlas California
Municipal Money Fund, the Atlas National Municipal Money Fund, the Atlas
California Insured Intermediate Municipal Fund, the Atlas National Insured
Intermediate Municipal Fund, the Atlas U.S. Government Intermediate Fund, the
Atlas California Municipal Bond Fund, the Atlas National Municipal Bond Fund,
the Atlas U.S. Government and Mortgage Securities Fund, the Atlas Strategic
Income Fund, the Atlas Balanced Fund, the Atlas Growth and Income Fund, the
Atlas Strategic Growth Fund, and the Atlas Global Growth Fund (a "Fund", or
collectively, the "Funds"). All Funds are diversified with the exception of the
Atlas California Municipal Money Fund, the Atlas California Insured Intermediate
Municipal Fund, and the Atlas California Municipal Bond Fund which are
non-diversified. The Funds offer two classes of shares, Class A and Class B,
with the exception of Atlas California Municipal Money Fund and Atlas National
Municipal Money Fund which offer only Class A shares. Class A shares are subject
to a sales charge at the time of purchase while Class B shares may be subject to
a contingent deferred sales charge. Both share classes have equal rights and
privileges but have separate distribution plans, class specific expenses and
exclusive rights to vote on matters affecting only individual classes. Class B
shares will automatically convert to Class A shares sixty months after purchase.
The investment objective of the Money and Bond Funds is to seek a high level
of current income consistent with prudent investment management. The Money Funds
seek short-term yields with liquidity and stability of principal. The Bond Funds
seek higher long-term yields for investors who can accept price fluctuations. In
pursuing this objective, the Intermediate Funds can generally be expected to
provide higher yields than the Money Funds with less price fluctuations than
long-term bond funds, and the Insured Funds seek to minimize credit risk. The
Stock Funds seek a varying mix of long-term capital growth and current income
for investors who can accept price fluctuations.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
a. Investment Valuation: Bond Fund securities are valued by pricing
services. Valuations of portfolio securities furnished by the pricing
services are based upon a computerized matrix system and/or appraisals,
in each case, in reliance upon information concerning market transactions
and quotations from recognized securities dealers. Securities for which
quotations are readily available are valued based upon those quotations.
Securities for which quotations are not readily available (which
constitute the majority of the Bond Funds' securities) are valued at
their fair value based upon the information supplied by the pricing
services. The methods used by the pricing services and the quality of
valuations so established are reviewed by the Company's officers under
the general supervision of the Directors of the Company. There are a
number of pricing services available and the Directors, on the basis of
ongoing evaluation of these services, may use other pricing services or
discontinue the use of any pricing service in whole or in part.
Money Fund securities have a remaining maturity of 13 months or less and
their entire portfolios have a weighted average maturity of 90 days or
less. As such, all of the Money Fund securities are valued at amortized
cost, which approximates value. If a Money Fund portfolio had a remaining
weighted average maturity of greater than 90 days, the portfolios would
be stated at value based on recorded closing sales on a national
securities exchange or, in the absence of a recorded sale, at the mean
between the bid and asked prices.
Stock Fund securities listed or traded on an exchange are valued at the
last sales price on the exchange, or lacking any sales on a particular
day, the security is valued at the mean between the closing bid and asked
prices on that day. Each security traded in the over-the-counter market
(but not including securities reported on the NASDAQ National Market
System) is valued at the mean between the last bid and asked prices. Each
security reported on the NASDAQ National Market System is valued at the
last sales price on the valuation date.
b. Security Credit Risk: The Atlas Strategic Income Fund may invest any
amount of its assets in higher-yielding, lower-rated debt securities,
including defaulted securities, which may be subject to a greater degree
of credit risk, greater market fluctuations and risk of loss of income
and principal than lower yielding, investment grade
42
<PAGE> 44
- --------------------------------------------------------------------------------
fixed income securities. While it does not hold any such securities as of
June 30, 1996, the Atlas Global Growth Fund may also invest in such
lower-rated securities, but only up to 5% of its assets. Neither Fund
holds any securities in default as of June 30, 1996.
c. Municipal Bonds or Notes with "Puts": The Funds have purchased municipal
bonds or notes with the right to resell the bonds or notes to the seller
at an agreed upon price or yield on a specified date or within a specified
period (which will be prior to the maturity date of the bonds or notes).
Such a right to resell is commonly known as a "put". In determining the
weighted average maturity of the Money Funds' portfolios, municipal bonds
and notes as to which the Funds hold a put will be deemed to mature on the
last day on which the put may be exercisable.
d. Variable Rate Demand Notes: The Funds have invested in certain variable
interest rate demand notes with maturities greater than 90 days but which
are redeemable at specified intervals upon demand. The maturity of these
instruments for purposes of calculating the portfolio's weighted average
maturity is considered to be the greater of the period until the interest
rate is adjusted or until the principal can be recovered by demand.
e. Federal Income Taxes: It is the Company's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its net investment income,
including any net realized gain on investments, to its shareholders.
Accordingly, no provision for federal income or excise tax is required.
f. Security Transactions: As is common in the industry, security
transactions are accounted for on the date the securities are purchased
or sold (trade date). Realized gains and losses on security transactions
are determined on the basis of specific identification for both financial
statement and federal income tax purposes.
g. Allocation of Expenses, Income and Gains and Losses: Common expenses
incurred by the Company are allocated among the Funds based on the ratio
of net assets of each Fund to the combined net assets. Common expenses,
income and gains and losses are allocated daily among share classes of
each Fund based on the relative proportion of net assets represented by
each class. Other expenses are charged to each Fund as incurred on a
specific identification basis and then allocated amongst the share classes
or charged to the share class to which the expense is directly
attributable.
h. Investment Income, Expenses and Distributions: Interest income and
estimated expenses are accrued daily. Interest on payment-in-kind debt
securities is accrued as income at the coupon rate and a market adjustment
is made periodically. Dividends are recorded on the ex-dividend date.
Dividends-in-kind are recorded as income on the ex-dividend date at the
current market value of the underlying security. The Money Funds declare
and reinvest dividends daily and pay them monthly. The Bond Funds declare
dividends daily and reinvest and pay them monthly. The Stock Funds, with
the exception of the Atlas Strategic Growth Fund and the Atlas Global
Growth Fund which are on an annual schedule, declare, pay and reinvest
dividends quarterly. Income for the Atlas Balanced Fund, the Atlas Growth
and Income Fund and the Atlas Global Growth Fund for the periods ended
June 30, 1996 are net of foreign withholding taxes of $872, $9,984 and
$1,832, respectively. Distributions of capital gains, if any, will
normally be declared and paid once a year.
i. To-Be-Announced Securities: The Atlas U.S. Government Intermediate Fund,
the Atlas U.S. Government and Mortgage Securities Fund and the Atlas
Strategic Income Fund may trade portfolio securities on a "to-be-
announced" (TBA) basis. In a TBA transaction, the Fund has committed to
purchasing or selling securities for which all specific information is
not yet known at the time of the trade, particularly the pool number and
face amount. Securities purchased on a TBA basis are not settled until
they are delivered to the Fund, normally 15 to 45 days later. These
transactions are subject to market fluctuations and their current value
is determined in the same manner as for other portfolio securities.
Pursuant to regulation, the Fund sets aside sufficient investment
securities as collateral to meet these commitments. None of these Funds
had TBA commitments as of June 30, 1996.
j. Options: Premiums received from call options written are recorded as a
liability. The amount of the liability is subsequently adjusted to
reflect the current market value of the option written. If the option is
not exercised, premiums received are realized as a gain at expiration
date. If the position is closed prior to expiration, a gain or
43
<PAGE> 45
Notes to Financial Statements June 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
loss is realized based on premiums received less the cost of the closing
transaction. When an option is exercised, premiums received are added to
the proceeds from the sale of the underlying securities and a gain or
loss is realized accordingly. These same principles apply to the sale of
put options.
k. Forward Contracts: The Stock Funds and Atlas Strategic Income Fund may
enter into forward foreign currency exchange contracts (forward
contracts) to hedge specific transactions or portfolio positions and to
protect the value of the portfolio against future changes in currency
exchange rates. A forward contract is an obligation to purchase or sell a
specific currency at an agreed upon future date at a price set on the day
of the contract.
The valuation of forward contracts is based on the daily closing prices
of the forward currency contract rates in the London foreign exchange
markets as provided by pricing services. Gains or losses are realized
upon the closing or settlement of the forward transaction.
Securities are held in segregated accounts to cover net exposure on
outstanding forward contracts. Unrealized appreciation or depreciation on
forward contracts is reported in the Statement of Assets and Liabilities.
Realized gains and losses are reported with all other foreign currency
gains and losses in the Fund's Statement of Operations.
The risks associated with forward contracts include the potential default
of the other party to the contract and unanticipated movements in the
value of a foreign currency relative to the U.S. dollar.
l. Repurchase Agreements: The Funds may invest in repurchase agreements
secured by U.S. Government obligations or by other securities.
Securities pledged as collateral for repurchase agreements are held by
the Funds' custodian bank until maturity of the repurchase agreements.
Provisions of the agreements ensure that the market value of the
collateral is sufficient in the event of default; however, in the event
of default or bankruptcy by the other party to the agreements,
realization and/or retention of the collateral may be subject to legal
proceedings.
m. Dollar Reverse Repurchase Transactions: The Atlas U.S. Government
Intermediate Fund, the Atlas U.S. Government and Mortgage Securities Fund
and the Atlas Strategic Income Fund may engage in dollar reverse
repurchase agreements ("dollar rolls"), which entail the simultaneous sale
of securities with an agreement to buy back substantially similar
securities at a future date at a price less than the price at which the
securities were originally sold. These transactions are accounted for as
financing transactions as opposed to sales and purchases. The differential
in price between the sale price and repurchase price is recorded as
deferred income and recognized between the settlement dates of the sale
and repurchase. Pursuant to regulation, the Funds set aside sufficient
investment securities as collateral to meet these commitments. The risk is
that the market value of the securities sold by the Funds may decline
below the repurchase price of those securities.
n. Foreign Currency Translation: Amounts denominated in or expected to
settle in foreign currencies (FC) are translated into United States
dollars at rates reported by selected pricing services on the following
basis: Market value of investment, other assets and liabilities -- at the
closing rate of exchange at the balance sheet date; purchases and sales
of investment securities, income and expenses -- at the rate of exchange
prevailing on the respective dates such transactions are recorded.
The Funds do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held.
Such fluctuations are included with the net realized and unrealized gain
or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of FC's, currency gains or
losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest
and foreign withholding taxes recorded on the Funds' books, and the U.S.
dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at
fiscal year end, resulting from changes in the exchange rates.
o. The Funds have previously adopted Statement of Position 93-2,
"Determination, Disclosure, and Financial Statement Presentation of
Income, Capital Gain, and Return of Capital Distributions by Investment
Compa-
44
<PAGE> 46
- --------------------------------------------------------------------------------
nies." In accordance with the statement, distributions in excess of
realized gains have been reflected in the Statement of Changes in Net
Assets by Atlas Strategic Growth Fund for $1,992 in 1995 resulting from
the non-deductibility under Internal Revenue Service regulations of
certain wash sales.
p. 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 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.
2. UNAMORTIZED ORGANIZATION COSTS
Organization costs of $35,906 incurred by the Company as of June 30, 1994 in
the organization of the Class B Plan have been allocated equally to the Funds
existing at that date offering Class B shares. These costs have been deferred
and are being amortized on a straight line basis over a period of five years
from July 1994.
3. UNREALIZED APPRECIATION/DEPRECIATION -- TAX BASIS
As of June 30, 1996, each Fund had the following unrealized appreciation
(depreciation) for federal income tax purposes (in 000's):
<TABLE>
<CAPTION> California National California Insured National Insured U.S. Government California
U.S. Treasury Municipal Municipal Intermediate Intermediate Intermediate Municipal
Money Fund Money Fund Money Fund Municipal Fund Municipal Fund Fund Bond Fund
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------
Unrealized
appreciation..... $ 0 $ 0 $ 0 $ 267 $ 220 $ 1 $ 7,646
Unrealized
depreciation..... $ 0 $ 0 $ 0 $ (83) $ (29) $ (224) $ (1,295)
--------------------------------------------------------------------------------------------------------------
Net unrealized
appreciation
(depreciation)... $ 0 $ 0 $ 0 $ 184 $ 191 $ (223) $ 6,351
==============================================================================================================
Cost of
securities
for federal
income tax
purposes......... $60,215 $ 39,067 $7,317 $19,996 $ 13,726 $ 8,394 $173,309
==============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
National U.S. Government
Municipal and Mortgage Strategic Income Balanced Growth and Strategic Growth Global Growth
Bond Fund Securities Fund Fund Fund Income Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------
Unrealized
appreciation..... $ 1,880 $ 1,693 $ 41 $ 2,217 $ 23,079 $ 2,511 $ 241
Unrealized
depreciation..... $ (118) $ (3,504) $ (14) $ (243) $ (1,446) $ (313) $ (116)
--------------------------------------------------------------------------------------------------------------
Net unrealized
appreciation
(depreciation)... $ 1,762 $ (1,811) $ 27 $ 1,974 $ 21,633 $ 2,198 $ 125
==============================================================================================================
Cost of
securities
for federal
income tax
purposes......... $49,921 $277,663 $5,035 $22,352 $109,108 $17,620 $ 6,884
==============================================================================================================
</TABLE>
45
<PAGE> 47
Notes to Financial Statements June 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
4. SHARE TRANSACTIONS
The following is a summary of share transactions for the periods ended June
30, 1996 and December 31, 1995 (in 000's):
<TABLE>
<CAPTION>
U.S. Treasury California Municipal National Municipal
Money Fund Money Fund Money Fund
Class A Class B Class A Class A
1996 1995 1996 1995 1996 1995 1996 1995
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold................... 39,077 62,421 54 113 11,105 21,048 2,626 5,490
Issued in reinvestment
of dividends.......... 1,212 1,732 2 2 500 1,207 98 264
Redeemed............... (31,743) (46,219) (54) (30) (13,571) (25,795) (3,210) (8,004)
-------------------------------------------------------------------------------------------------------
Net increase
(decrease)............ 8,546 17,934 2 85 (1,966) (3,540) (486) (2,250)
=======================================================================================================
</TABLE>
<TABLE>
<CAPTION>
California Insured National Insured U.S. Government
Intermediate Municipal Fund Intermediate Municipal Fund Intermediate Fund
Class A Class B Class A Class B Class A Class B
1996 1995 1996 1995 1996 1995 1996 1995 1996 1995 1996 1995
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold.................. 79 132 32 18 56 50 2 9 46 78 13 16
Issued in reinvestment
of dividends......... 27 62 1 1 18 38 0 0 15 29 1 2
Redeemed.............. (504) (275) 0 0 (242) (249) (1) (1) (79) (307) (9) (9)
-------------------------------------------------------------------------------------------------------
Net increase
(decrease)........... (398) (81) 33 19 (168) (161) 1 8 (18) (200) 5 9
=======================================================================================================
</TABLE>
<TABLE>
<CAPTION>
California Municipal National Municipal U.S. Government and Mortgage
Bond Fund Bond Fund Securities Fund
Class A Class B Class A Class B Class A Class B
1996 1995 1996 1995 1996 1995 1996 1995 1996 1995 1996 1995
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold.................. 914 1,171 122 148 152 312 42 61 1,240 1,783 201 219
Issued in reinvestment
of dividends......... 277 584 6 7 82 177 2 2 504 1,065 10 10
Redeemed.............. (1,189) (2,038) (10) (11) (388) (609) (2) (4) (2,676) (3,767) (40) (12)
------------------------------------------------------------------------------------------------------
Net increase
(decrease)........... 2 (283) 118 144 (154) (120) 42 59 (932) (919) 171 217
======================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Strategic Income Fund Balanced Fund Growth and Income Fund
Class A Class B Class A Class B Class A Class B
1996 1995 1996 1995 1996 1995 1996 1995 1996 1995 1996 1995
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold.................. 999 NA 1 NA 778 298 178 90 1,646 1,424 263 143
Issued in reinvestment
of dividends......... 0 NA 0 NA 25 37 4 4 32 662 2 29
Redeemed.............. 0 NA 0 NA (254) (171) (7) (12) (635) (1,382) (8) (10)
------------------------------------------------------------------------------------------------------
Net increase
(decrease)........... 999 NA 1 NA 549 164 175 82 1,043 704 257 162
======================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Strategic Growth Fund Global Growth Fund
Class A Class B Class A Class B
1996 1995 1996 1995 1996 1995 1996 1995
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold.................. 367 368 132 152 598 NA 93 NA
Issued in reinvestment
of dividends......... 0 13 0 3 0 NA 0 NA
Redeemed.............. (224) (65) (3) (3) (5) NA 0 NA
------------------------------------------------------------------------
Net increase
(decrease)........... 143 316 129 152 593 NA 93 NA
========================================================================
</TABLE>
46
<PAGE> 48
- --------------------------------------------------------------------------------
5. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding short-term securities)
for the periods ended June 30, 1996 were as follows (in 000's):
<TABLE>
<CAPTION>
California National
U.S. California National Insured Insured U.S. Government
Treasury Municipal Municipal Intermediate Intermediate Intermediate
Money Fund Money Fund Money Fund Municipal Fund Municipal Fund Fund
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases.... $0 $0 $0 $5,626 $5,736 $3,355
Sales........ $0 $0 $0 $10,162 $7,338 $4,411
---------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
California National U.S. Government
Municipal Municipal and Mortgage Strategic Balanced Growth and Strategic Global
Bond Funds Bond Fund Securities Fund Income Fund Fund Income Fund Growth Fund Growth Fund
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchases.... $36,225 $18,043 $138,351 $11,657 $8,028 $62,280 $13,160 $6,146
Sales........ $38,189 $23,249 $122,986 $6,632 $2,986 $33,369 $10,513 $ 441
-------------------------------------------------------------------------------------------------------------
</TABLE>
At June 30, 1996 the following Funds had capital loss carryovers approximating
these amounts for federal income tax purposes (in 000's):
<TABLE>
<CAPTION>
Expiring December 31,
--------------------------
2001 2002 2003
<S> <C> <C> <C>
California Insured Intermediate Municipal Fund.......................... $ -- $ 277 $ 319
National Insured Intermediate Municipal Fund............................ -- $ 204 $ 203
U.S. Government Intermediate Fund....................................... -- $ 211 $ 56
California Municipal Bond Fund.......................................... -- $ 817 $1,074
National Municipal Bond Fund............................................ -- $ 265 $ --
U.S. Government and Mortgage Securities Fund............................ $288 $5,139 $7,507
Balanced Fund........................................................... -- -- $ 3
</TABLE>
Such amounts may be used to offset capital gains realized during the
subsequent periods indicated and thereby relieve these funds and their
shareholders of federal tax liability with respect to the capital gains that are
so offset. It is the intention of the Funds not to make distributions from
capital gains while they have a capital loss carryover.
6. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Atlas Advisers, Inc. (the "Adviser") provides portfolio management services to
the U.S. Government and Mortgage Securities Fund, the U.S. Government
Intermediate Fund and the U.S. Treasury Money Fund and supervises the provision
of similar services to the Atlas Municipal Funds by The Boston Company Advisors,
Inc. and to the Atlas Stock Funds and Atlas Strategic Income Fund by Oppenheimer
Management Corporation (together, the "Subadvisers"). Each Fund pays the Adviser
a management fee for the investment management services who, in turn, pays the
Subadvisers. The management fee is based on an annual rate, equal to a
percentage of each Fund's average daily net assets, and is paid monthly as
follows: .50% of assets up to $500 million and .475% of assets over $500 million
for the Money Funds; .55% of assets up to $500 million and .50% of assets over
$500 million for the Bond Funds other than Atlas Strategic Income Fund; .70% of
assets up to $100 million, .60% of assets of the next $400 million and .50% of
assets over $500 million for the Stock Funds other than Atlas Global Growth
Fund; .75% of assets up to $100 million, .70% of assets of the next $400 million
and .65% of assets over $500 million for the Atlas Strategic Income Fund; and
.80% of assets up to $100 million, .75% of assets of the next $400 million and
.70% of assets over $500 million for the Atlas Global Growth Fund.
Atlas Securities, Inc. (the "Distributor") acts as principal underwriter for
all classes of shares of each Fund pursuant to a Principal Underwriting
Agreement which provides for a commission to be paid on the sale of Class A
shares of the Bond and Stock Funds and on the redemption of Class B shares held
less than five years of the Stock and Bond Funds and the U.S. Treasury Money
Fund. The Distributor also receives payments under separate Distribution Plans
(the "Class A Plan" and "Class B Plan") pursuant to Rule 12b-1 of the 1940 Act.
Under the Class A Plan, the Company may reimburse the Distributor up to a
maximum of .25% per year of average daily Class A net assets in each Fund,
payable on a quarterly basis. Under the Class B Plan, the maximum rate is .75%
per year of average daily Class B net assets in each Fund and is payable on a
monthly basis.
47
<PAGE> 49
Notes to Financial Statements June 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
Due to voluntary expense waivers in effect during the periods ended June 30,
1996, 12b-1 fees relating to Class A shares were assessed and paid to the
Distributor at rates, varying by Fund, ranging from 0.00% to .25% per annum.
Such fees under the Class B Plan were assessed and paid at rates, varying by
Fund, ranging from .50% to .75% per annum. Class A and Class B 12b-1 fees due
the Distributor were reduced in the amount of $186,441 and $1,030, respectively.
Management fees due the Adviser were reduced by $167,471. The Adviser also
absorbed $117,413 of other Fund expenses during the period. During the six
months ended June 30, 1996, the Distributor received $509,036 for sales charges
paid by purchasers of Class A shares and $10,701 for contingent deferred sales
charges paid by sellers of Class B shares. Such sales charges are not an expense
of the Funds and thus are not reflected in the accompanying Statements of
Operations.
The Adviser and Distributor are wholly owned subsidiaries of Golden West
Financial. Certain officers and directors of the Company are also officers
and/or directors of the Adviser and the Distributor.
At June 30, 1996, Golden West Financial owned 24,809 Class A shares in the
California Municipal Money Fund; 25,069 Class A shares in the National Municipal
Money Fund; 2,500 Class B shares in the U.S. Treasury Money Fund; 110,686 Class
A shares and 264 Class B shares in the U.S. Government Intermediate Fund; 2,928
Class A shares and 233 Class B shares in the California Municipal Bond Fund;
2,925 Class A shares and 233 Class B shares in the National Municipal Bond Fund;
3,302 Class A shares and 256 Class B shares in the U.S. Government and Mortgage
Securities Fund; 106,364 Class A shares and 252 Class B shares in the California
Insured Intermediate Municipal Fund; 160,111 Class A shares and 252 Class B
shares in the National Insured Intermediate Municipal Fund; 30,572 Class A
shares and 53 Class B shares in the Balanced Fund; 191 Class B shares of Growth
and Income Fund; 53,845 Class A shares and 61 Class B shares in the Strategic
Growth Fund; 999,500 Class A shares and 500 Class B shares in the Strategic
Income Fund; and 199,750 Class A shares and 250 Class B shares in the Global
Growth Fund.
7. CONCENTRATIONS OF CREDIT RISK
There are certain concentrations of credit risk, which may subject the Funds
more significantly to economic changes occurring in certain industries or
sectors as follows:
The California Municipal Money Fund, the California Insured Intermediate
Municipal Fund, and the California Municipal Bond Fund have concentrations in
California municipal securities.
The U.S. Government and Mortgage Securities Fund has a concentration in
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association
securities.
The U.S. Government Intermediate Fund has a concentration in Federal National
Mortgage Association securities.
The U.S. Treasury Money Fund and Strategic Income Fund have a concentration in
United States Treasury obligations.
Industry and sector concentrations greater than 10% of a Fund's net assets at
June 30, 1996 are as follows:
The California Municipal Money Fund has 14.86% in prerefunded bonds, 12.36% in
water and sewer, 11.62% in pollution control revenue bonds, 10.69% in tax
revenue anticipation notes and 10.62% in housing.
The National Municipal Money Fund has 23.53% in industrial development bonds,
12.43% in general obligation, 11.56% in public power and 10.21% in industrial
development.
The California Insured Intermediate Municipal Fund has 18.67% in
transportation, 18.20% in water/sewer, 21.07% in education and 13.04% in public
power.
The National Insured Intermediate Municipal Fund has 39.58% in general
obligation and 21.08% in prerefunded bonds.
The California Municipal Bond Fund has 27.65% in water/sewer bonds.
The National Municipal Bond Fund has 24.78% in general obligation bonds.
48
<PAGE> 50
- --------------------------------------------------------------------------------
8. FORWARD CONTRACTS
As of June 30, 1996, Atlas Strategic Income Fund and Atlas Global Growth Fund
had the following open forward contracts to purchase and sell foreign
currencies:
<TABLE>
<CAPTION>
Contract
Settlement Amount Valuation as Unrealized
Date (000's) of 6/30/96 Gain(Loss)
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Strategic Income Fund
Contracts to Buy:
- ----------------
Japanese Yen............................................. 7/5/96 818 JPY $ 7,492 $ (87)
======== ------
Contracts to Sell:
- ------------------
Japanese Yen............................................. 8/26/96-9/5/96 2,400 JPY $ 22,159 226
Swiss Franc.............................................. 7/8/96-8/26/96 120 CHF 228,519 (2,736)
-------- ------
$250,678 (2,510)
======== ------
$(2,597)
======
Global Growth Fund
Contracts To Buy:
- ----------------
Austrian Schilling....................................... 7/8/96 593 AUS $ 55,428 $ 302
South Africa Rand........................................ 7/1/96 257 SAR 59,215 87
Swedish Krona............................................ 7/1/96 869 SEK 131,375 (6)
-------- ------
$246,018 $ 383
======== ======
</TABLE>
9. ILLIQUID AND RESTRICTED SECURITIES
The Funds may invest in securities that are illiquid or restricted. These
securities may not be registered under the Securities Act of 1933, may be
acquired in private placements that may have legal or contractual restrictions
preventing their ready disposition, or may be repurchase agreements or time
deposits maturing in more than seven days. No Fund will invest in illiquid
assets if, immediately after such purchase, the value thereof, as determined
under methods approved by the Board of Directors, would exceed 10% of its net
assets. At June 30, 1996, the value of illiquid securities amounted to
$18,085,084 in the Atlas U.S. Government and Mortgage Securities Fund, $113,594
in the Atlas Strategic Income Fund, $62,550 in the Atlas Balanced Fund,
$1,287,000 in the Atlas Growth and Income Fund and $32,875 in the Atlas Global
Growth Fund. Information concerning these investments as of June 30, 1996 is as
follows:
<TABLE>
<CAPTION>
Acquisition Cost Per Unit
Fund Security Date Unit Valuation
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government Repurchase Agreement with Smith Barney,
and Mortgage 5.38% due 07/15/96................................... 06/13/96 $100.00 $100.47
Securities Fund Repurchase Agreement with Goldman Sachs,
5.40% due 07/15/96................................... 06/13/96 $100.00 $100.47
Strategic Income Mortgage Capital Funding, Inc., Commercial Mtg.
Fund Pass-Through Certificates, Series 1996-MC1, Class G,
7.15% due 06/15/06................................... 06/27/96 $ 74.17 $ 74.84
Petersburg Long Distance, Inc.,
0%/14% Debs. due 06/01/04............................ 05/24/96 $ 71.59 $ 77.50
Balanced Fund Florida Coast Paper LLC,
12.75% Debs. due 06/01/03............................ 05/23/96 $100.00 $104.25
Growth and Corporate Express CNV,
Income Fund 4.50% Debs. due 07/01/00............................. 06/19/96 $100.00 $ 99.00
Global Growth Quintiles Transnational Corp. Common Stock........... 04/16/96-05/15/96 $ 70.75 $ 65.75
Fund
</TABLE>
Certain Funds own restricted securities which have been determined to be
liquid. These securities are not included in the 10% limitation mentioned above
and are identified in the Statements of Investments.
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[ATLAS FUNDS LOGO] BULK RATE
1901 Harrison Street U.S. POSTAGE
Oakland, CA 94612 PAID
SAN BERNARDINO,CA
PERMIT NO.448
AT-389
