<PAGE> 1
Table of Contents
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the President........................................................................... 2
Atlas Fund Discussions:
Money Funds.................................................................................... 4
Municipal Funds................................................................................ 4
U.S. Government and Mortgage Securities Fund................................................... 5
U.S. Government Intermediate Fund.............................................................. 5
Strategic Income Fund.......................................................................... 6
Balanced....................................................................................... 7
Growth and Income Fund......................................................................... 7
Strategic Growth Fund.......................................................................... 8
Global Growth Fund............................................................................. 9
Atlas Stock and Bond Fund Total Returns:
Bond Funds..................................................................................... 10
Stock Funds.................................................................................... 10
Comparing Atlas Fund Performance To The Market...................................................... 11
Statements of Investments in Securities and Net Assets.............................................. 14
Statements of Assets and Liabilities................................................................ 36
Statements of Operations............................................................................ 38
Statements of Changes in Net Assets................................................................. 40
Financial Highlights................................................................................ 44
Notes to Financial Statements....................................................................... 52
Independent Auditors' Report........................................................................ 62
</TABLE>
<PAGE> 2
(ATLASFUNDS LOGO)
FROM THE OFFICE OF MARION O. SANDLER
President and Chief Executive Officer
Dear Valued Shareholder,
The past year witnessed divergent results in the stock
and bond markets. After a banner year in 1995, the stock
market continued its vigorous upward climb in 1996. While
the bond market fared less well, delivering disappointing
results, all Atlas bond funds posted positive returns for
the year and the long-term funds outperformed the majority
of their competitors.
1995-1996:
Rewarding Back-To-Back Years For Atlas Stock Funds
In 1996, for the second year in a row, all Atlas stock
funds registered double digit returns. The Strategic
Growth Fund led the way, with a net asset value total
return of 23.72%. This Fund's aggregate gain for the years
1995-96 was 59.78%. The two-year net asset return for our
Growth and Income Fund was even higher at 59.88%.
The remarkable stock market achievements of 1995 and
1996 confirm the wisdom of adhering to long-term
investment goals. Investors who left -- or stayed out
of -- the market following the brief downturn of 1994
missed the rewards of Wall Street's largest two-year
percentage gain since 1975-1976, as measured by the Dow
Jones Industrial Average.
The Year In Bonds:
Making The Best Of A Weak Market
1996 was a lackluster period for bonds. The year, in
fact, delivered negative returns for owners of long-term
Treasury Bonds, with the Merrill Lynch Long-Term Treasury
Index down 1% for 1996. In a bond market this weak, Atlas
bond funds were unable to duplicate the double digit
returns of 1995. All Atlas Funds generated positive
results, with the Atlas U.S. Government and Mortgage
Securities Fund accumulating a 12-month net asset value
total return of 4.50%. What's more, Atlas' newest bond
fund, the Strategic Income Fund, rewarded shareholders
with an 8.89% aggregate total return since its inception
on May 20, 1996.
<TABLE>
<S> <C>
You'll find detailed information on the
performance of all Atlas Funds starting on page 10
of this report.
New In 1996: Introducing The Atlas Global Growth Fund
And The Atlas Strategic Income Fund
Atlas' two newest funds were created to allow
shareholders to take advantage of investment
opportunities not only in the U.S., but also all over (NOT FDIC- INSURED
the world. INFO)
</TABLE>
2
<PAGE> 3
The Global Growth Fund invests in the stocks of both
foreign and U.S. companies to achieve the goal of long-term
growth. The Atlas Strategic Income Fund seeks high current
income by investing across three broad sectors of the bond
market -- U.S. Government securities, foreign fixed-income
debt, and high yield, lower-rated corporates. Both funds
provide excellent ways to diversify your investment portfolio.
New In 1997:
Announcing Atlas Tax-Deferred Annuities
With the introduction in January of Atlas Tax-Deferred
Annuities, an important new addition to our family of
investment opportunities, we are able to provide you with
tax-deferred earnings at very competitive rates. These fixed
annuities offer a 1% bonus rate for one year on each purchase,
no up-front sales charge, an insurance company money back
guarantee and other benefits your Atlas Investment
Representative will be happy to explain. You can also call
1-800-993-ATLAS (1-800-933-2852) for more information, or to
make an appointment to discuss how Atlas Tax-Deferred Annuities
can work for you.
Atlas Investment Representatives:
Helping You Meet Your Financial Goals
As a sister company of World Savings and a member of the
$35 billion-strong Golden West Financial Corporation, Atlas is
dedicated to providing the superior products, personal service
and caring professional advice you've come to expect from
World. That's why we call Atlas Funds "THE INVESTMENTS YOU WANT
FROM THE PEOPLE YOU TRUST." So, if you'd like more information
about Atlas' new investment opportunities, or wish to review
your current investments to determine if they are consistent
with your financial objectives, just call 1-800-993-ATLAS
(1-800-933-2852) and speak with an Atlas Investment
Representative. You can also call to set up a meeting with your
personal Representative at a nearby World branch.
On behalf of all of us at Atlas Funds, I thank you for the
opportunity to serve your investment needs today and in the
future.
Sincerely,
(SANDLER SIGNATURE)
(Mrs.) Marion O. Sandler
President and Chief Executive Officer
3
<PAGE> 4
Atlas Fund Discussions
- --------------------------------------------------------------------------------
Money Funds:
During 1996, the Atlas U.S. Treasury Money Fund (Class
A shares) provided a total return of 4.74%, by
investing solely in top quality U.S. Treasury
obligations, which are guaranteed by the full faith and
credit of the U.S. Government. Income generated by
Treasury securities is exempt from both state and local
taxes, so shareholders also enjoyed some tax
advantages.
The Atlas National Municipal Money Fund generated a
total return of 2.96% in 1996, which is equivalent to a
maximum taxable equivalent return of 4.90%. For the
same period, the Atlas California Municipal Money Fund
realized a double tax-free return of 2.82%, or a
maximum taxable return of 5.15%.
The Atlas municipal money funds will continue to
purchase only the highest quality short-term municipal
securities, favoring those that are enhanced by letters
of credit, private insurance or pre-refunding. As in
1996, the Funds will continue to avoid securities
backed by letters of credit from Japanese banks, which
are still suffering through a period of weak financial
performance. In our view, without financial stability,
a bank's backing becomes nearly meaningless. The Fund
manager continues to monitor the situation and will
reconsider purchasing Japanese-backed securities if
conditions improve.
Municipal Funds:
Despite a disappointing bond market overall in 1996,
the Atlas Municipal Bond Funds all realized positive
returns for their shareholders:
<TABLE>
<CAPTION>
1996 TOTAL RETURN AT NET
ASSET VALUE
(CLASS A SHARES)
---------------------------------------------------------------------------------------
<S> <C> <C>
Atlas California Municipal Bond Fund 3.90%
Atlas National Municipal Bond Fund 3.58%
Atlas California Insured Intermediate
Municipal Fund 3.93%
Atlas National Insured Intermediate
Municipal Fund 3.68%
</TABLE>
Bond prices were anything but stable during 1996. The
year started with the Federal Reserve Board cutting
interest rates a quarter point. As the year progressed,
investor concern that the federal government would
impose a flat tax and eliminate the advantage of buying
tax-exempt securities also added uncertainty to the
market. When it became apparent that the economy was
stronger than expected and inflation fears began to
influence the markets, long-term municipal bond prices
began to fall and yields began to climb. The Bond Buyer
20 yield (a measure of the long-term municipal market)
started the year at 5.44% and moved as high as 6.12% by
mid-June.
During the last half of the year, when it appeared that
concerns over rising inflation were unfounded,
long-term bond prices began to rise, and yields fell
from a high of 6.12% to finish the year at 5.66%.
Intermediate-term bonds, as measured by the total
return of the
4
<PAGE> 5
- --------------------------------------------------------------------------------
Municipal Funds: (continued)
Lehman Brothers 7-Year Municipal Bond Index, were
somewhat less volatile, slightly outperforming their
long-term counterparts.
To help stabilize prices during 1996, the Atlas
municipal funds portfolio manager maintained a shorter
weighted-average portfolio maturity than the majority
of comparable funds. The Funds continued emphasizing
essential services issues, such as water, sewer, public
power and general obligation bonds because of their
reliable revenue sources.
The overall credit quality of the Atlas municipal funds
remains exceptionally high. As of December 31,
approximately 98% of the California Municipal Bond Fund
and 95% of the National Municipal Bond Fund were
invested in securities rated either AAA or AA, making
these Funds among the highest quality of all comparable
municipal debt funds in the country. Despite this very
heavy emphasis on quality, both long-term municipal
funds outperformed the Lipper average for their
respective fund categories*. The Atlas National and
California Insured Intermediate Funds, both of which
are insured portfolios (100% AAA), slightly
underperformed their respective intermediate Lipper
category averages, but it is important to note that the
comparable categories contain primarily lower quality,
uninsured funds.
The general outlook for the municipal market in 1997 is
favorable, reflecting the expectation that inflation
will remain low, the economy will grow at a modest
pace, and municipal issuers, with improving fiscal
circumstances, will use the municipal securities
marketplace to meet their financing needs. The Fund
manager will continue to implement changes to maintain
competitive yields and high credit quality, while
attempting to dampen price volatility.
* 3.65% return for the Lipper California Municipal Debt
Fund average; 3.30% for the General Municipal Debt Fund
average. Lipper returns do not take sales charges into
consideration.
U.S. Government and Mortgage Securities Fund
U.S. Government Intermediate Fund:
Despite a somewhat disappointing year for bond funds
overall, Atlas U.S. Government and Mortgage Securities
Fund (Class A shares) shareholders enjoyed a total
return of 4.50% for the year, far exceeding the 1.70%
Lipper average for General U.S. Government Funds and
ranking the Fund among the top 5% of similar funds in
the country*. The shorter-maturity Atlas U.S.
Government Intermediate Fund (Class A shares) posted a
3.81% net asset value total return for the year, versus
the 2.87% Lipper average for Intermediate U.S.
Government Funds.
The bond market in 1996 can be characterized as one of
changing expectations. When the Federal Reserve Board
(Fed) cut interest rates by a quarter point at the end
of January, some predicted a volatile year ahead,
filled with significant interest rate adjustments. In
fact, the January cut was the only move the Fed made
during the entire year. Despite the
5
<PAGE> 6
Atlas Fund Discussions
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U.S. Government and Mortgage Securities Fund
U.S. Government Intermediate Fund: (continued)
Fed's inaction, bond prices were anything but stable.
When it became apparent that the economy was stronger
than expected and inflation fears began to influence
the markets, prices fell and yields rose; 30-year
Treasury bond yields, which started the year at 5.95%,
moved as high as 7.20% in July. During the second half
of the year, when it became more apparent that
inflation was under control, bond prices rebounded
somewhat, and yields finished the year at 6.64%.
Overall, the bond market's total return, as measured by
the Merrill Lynch Long-Term Treasury Index, was a
negative 1.0% for the year.
During 1996, the Atlas U.S. Government Fund's portfolio
manager looked for opportunities to enhance yield by
selling issues with lower (below the current market)
coupon rates and replacing them with higher,
market-rate coupons. As a result, shareholders enjoyed
a distribution rate** over the year of 6.68%. In
addition to enhancing yield, this activity helped
reduce price volatility, particularly during the first
half of the year when interest rates were rising.
In anticipation of a flat to lower interest rate
environment in 1997, the Fund will continue to maintain
a balanced portfolio approach, intended to optimize
yield and reduce price volatility.
* Lipper Analytical Services, Inc. ranked the Fund 8
out of 170 for 1996 net asset value total return; 22
out of 71 for the five years ended 12/31/96; 16 out of
62 since 1/31/90, the Fund's inception date for ranking
purposes. Lipper returns do not take sales charges into
consideration.
** Distribution rate is calculated by annualizing
actual distributions over a 30-day period and dividing
by the net asset value per share at the end of the
period.
Strategic Income Fund:
The Atlas Strategic Income Fund (Class A shares)
produced an aggregate return of 8.89% from its
introduction on May 20, 1996 through the end of the
year, while providing shareholders with a distribution
rate* of 8.25%.
The Fund is designed to take advantage of opportunities
in three primary fixed-income sectors -- U.S.
Government, foreign and high yield bonds -- which tend
to perform independently of one another, reducing the
risk associated with investing in a single sector of
the bond market. At the end of 1996, 37% of the Fund's
non-cash assets was allocated to U.S. Government
securities, 42% was invested in foreign fixed-income
debt, and 21% in high yield U.S. corporates.
Of the three sectors, the Fund's foreign and high yield
bonds performed the best over the past year. While the
portfolio's allocation to emerging market bonds is
relatively small, their returns have, at times,
exceeded other investments within the portfolio by a
ratio of five to one. When you combine this success
with that of the Fund's high yield corporate bond
holdings, the two added up to very positive results for
the Fund.
Looking forward to 1997, the Fund's manager is likely
to reduce the U.S. Government allocation slightly and
to shift the majority of that sector's holdings from
Treasury securities to mortgage-backed securities,
which the manager believes will offer better value
6
<PAGE> 7
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Strategic Income Fund: (continued)
in 1997. The foreign fixed-income sector will focus on
emerging markets, which boasted spectacular returns in
1996 and are expected to generate good, but more modest
results in 1997. Decent growth is expected to fuel
continued recovery in Asia and restructuring should
boost the fortunes of Eastern Europe. With that in
mind, the Fund manager is increasing investments in
emerging Asian and Eastern European markets. In
addition, the manager anticipates growing opportunities
in the high yield market, particularly among
telecommunications and energy companies, and will
increase investment in those areas.
* Distribution rate is calculated by annualizing actual
distributions over a 30-day period and dividing by the
net asset value per share at the end of the period.
Balanced Fund:
The Atlas Balanced Fund (Class A shares) produced a
1996 net asset value total return of 15.81% versus the
Lipper average of 13.76%. This performance ranked the
Fund among the top 23% of Balanced Funds tracked by
Lipper*.
The Atlas Balanced Fund continues to provide
shareholders with a combination of current income and
reasonable capital growth. To achieve these objectives,
the Fund maintains a well-diversified portfolio of
stocks, convertible securities, government and
corporate bonds, and short-term cash instruments.
Throughout 1996, the Balanced Fund was positioned
defensively, due to concerns over corporate earnings
and inflation. Rather than purchase additional stocks,
inflows were used to build cash reserves. At year-end,
52% of the Fund was invested in stocks and convertible
securities, 29% was in U.S. Treasury and corporate
bonds, and cash had increased from 16% to 19% of the
portfolio.
Entering 1997, the Fund's equity strategy continues to
be defensive, with emphasis on companies with reliable
earnings prospects for 1997 and relatively low price to
earnings ratios. For income, the Fund manager will
continue to maintain a significant investment in
convertible securities.
* Lipper Analytical Services, Inc. ranked the Fund 62
out of 272 Balanced Funds for 1996 net asset value
total return; 55 out of 136 since the Fund's inception
on 10/1/93. Lipper returns do not take sales charges
into consideration.
Growth and Income Fund:
In 1996, the Atlas Growth and Income Fund (Class A
shares) produced a net asset value total return of
20.16%, slightly less than the 21.07% Lipper average
for Growth and Income Funds.
1996 was another record year for the stock market.
Despite a 101 point drop on the last day of trading,
the Dow Jones Industrial Average gained 26% in 1996,
far exceeding most analysts' original expectations. Not
all parts of the stock market performed equally well.
Returns for small-capitalization stocks trailed
large-capitalization (blue chip) stocks by more than 10
percentage points for the year.
The Atlas Growth and Income Fund performed
exceptionally well throughout the first three quarters
of 1996, with technology holdings, in particular,
posting strong gains. The
7
<PAGE> 8
Atlas Fund Discussions
- --------------------------------------------------------------------------------
Growth and Income Fund: (continued)
Fund maintained a bias toward mid-capitalization stocks
with strong earnings growth potential. As a result, the
Fund's year-to-date performance lost some ground during
the fourth quarter, when mid- and small-cap stock
prices lagged the big gains posted by the large-cap
(blue chip) stocks.
The portfolio manager continues to believe that the
economy is transitioning to a slower growth environment
and the most attractive investment opportunities will
be in those companies that can sustain a higher than
average earnings growth rate into 1997. The manager
sold some larger-capitalization companies that had
reached valuation targets, and proceeds were used to
purchase additional mid-capitalization stocks, which
have been undervalued relative to large-cap stocks and
offer better short-term appreciation potential.
Strategic Growth Fund:
The Atlas Strategic Growth Fund (Class A shares)
produced a 1996 net asset value return of 23.72%,
outperforming the Lipper average for Growth Funds
(19.24%), as well as the S&P 500 (22.96%) for the same
period. This performance ranked the Fund among the top
18% of the 669 Growth Funds tracked by Lipper*.
1996 was another record year for the stock market.
Despite a 101 point drop on the last day of trading,
the Dow Jones Industrial Average gained 26% in 1996,
which far exceeded most analysts' original
expectations. Not all parts of the stock market did as
well. Large-capitalization (blue chip) stocks led the
way, while small-stock prices trailed by more than 10
percentage points for the year.
The Fund manager focuses on mid- to
large-capitalization companies with above average
growth potential and below average prices. Targeted
companies generally had higher earnings growth rates
and lower price to earnings ratios than the S&P 500.
The Fund benefited significantly during the first half
of the year from its holdings in technology stocks. As
these stocks reached their price targets, the Fund took
profits and used the proceeds to purchase additional
issues in the retailing and financial sectors, which
performed well over the fourth quarter. With the
generally high level of the market, it was difficult to
find stocks that weren't overpriced, relative to their
earnings potential. Therefore, the Fund maintained a
fairly large cash position throughout the year.
For 1997, the Fund remains positioned somewhat
defensively with 22% cash reserves. The manager expects
volatility to remain high in 1997, and will buy stocks
opportunistically, as their prices become attractive
relative to earnings prospects. Currently, the Fund's
portfolio emphasizes consumer cyclical, financial and
energy stocks.
* Lipper Analytical Services, Inc. ranked the Fund 117
out of 669 Growth Funds for net asset value total
return; 154 out of 404 since 10/1/93, the Fund's
inception date. Lipper returns do not take sales
charges into consideration.
8
<PAGE> 9
- --------------------------------------------------------------------------------
Global Growth Fund:
The Atlas Global Growth Fund (Class A shares) produced
an aggregate return at net asset value of 10.89% for
the eight months from its introduction on April 30,
1996 through the end of the year. This performance
compares favorably to the 6.39% Lipper Global Fund
average for the same period.*
The Atlas Global Growth Fund looks for outstanding
growth opportunities around the world. The portfolio
manager searches for companies that stand to benefit
from one or more key global trends, such as
telecommunications expansion, emerging consumer
markets, natural resources, and corporate
restructuring, among others. The Fund has the
flexibility to invest in companies in developed
markets, as well as those in emerging markets. During
1996, returns were strongest in the U.S., Europe and
Latin America, while the biggest decline came from the
Japanese market, which was down 15.5% for the full
year. The Fund manager reduced exposure to Japan in
mid-year and avoided a very weak fourth quarter in that
market.
Several of the Fund's natural resources holdings
realized significant gains in 1996. For example, the
Fund held large positions in energy related companies
as oil prices moved higher during the year. This rise
was due to a simple matter of supply and demand.
Heating oil inventories have been seasonally low in the
U.S., while demand has been stronger than anticipated.
Meanwhile, overseas emerging economies' demand for oil
continues to grow dramatically, while non-OPEC
production has slowed.
Moving into 1997, there are some particular areas of
interest. The portfolio manager recently took advantage
of sharp price declines in the biotechnology sector to
add to the Fund's portfolio. The focus was on companies
that have strong earnings profiles, as well as good
research and development pipelines. The Fund has also
invested in the stocks of several European banks which
are streamlining their operations, much as U.S. banks
did in 1990-1991. The portfolio manager believes that
as the world evolves towards a truly global stock
market, a bottom-up, global theme-oriented investment
style, such as that employed by this Fund, should
continue to provide growth opportunities for long-term
investors.
* Lipper returns do not take sales charges into
consideration.
9
<PAGE> 10
Atlas Stock and Bond Fund Total Returns for periods ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Shares Class B Shares(1)
---------------------------------------------------- ----------------------------------
Inception To Inception To
12 Months 5 Years Date 12 Months 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>
Bond Funds:
California Insured
Intermediate Municipal(4).. 3.93 0.81 N.A. N.A. 5.12 4.23 3.14 0.15 5.22 4.48
National Insured
Intermediate Municipal(4).. 3.68 0.57 N.A. N.A. 5.09 4.20 2.99 0.01 5.24 4.50
U.S. Government
Intermediate(5)............ 3.81 0.69 N.A. N.A. 4.38 3.63 3.12 0.17 5.14 4.39
California
Municipal Bond(6).......... 3.90 0.78 6.57 5.92 7.87 7.40 3.39 .42 6.12 5.39
National
Municipal Bond(7).......... 3.58 0.47 6.79 6.14 8.01 7.54 3.07 .11 6.33 5.59
U.S. Government
and Mortgage
Securities(8).............. 4.50 1.37 6.23 5.58 8.17 7.70 3.98 1.05 7.80 7.09
Strategic Income........... N.A. N.A. N.A. N.A. 8.89(9) 5.62(9) N.A. N.A. 8.25(9) 5.25(9)
Stock Funds:
Balanced(10)............... 15.81 12.33 N.A. N.A. 11.65 10.61 15.25 12.25 16.11 15.47
Growth and Income(11)...... 20.16 16.56 12.05 11.37 15.97 15.39 19.60 16.60 22.55 21.96
Strategic Growth(10)....... 23.72 20.01 N.A. N.A. 16.07 14.99 23.13 20.13 20.69 20.09
Global Growth.............. N.A. N.A. N.A. N.A. 10.89(12) 7.56(12) N.A. N.A. 10.34(12) 7.34(12)
</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 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 Total return is aggregate since 5/20/96 inception
10 10/1/93 inception
11 12/5/90 inception
12 Total return is aggregate since 4/30/96 inception
10
<PAGE> 11
Comparing Atlas Fund Performance To The Market
- --------------------------------------------------------------------------------
The following charts compare the growth of a hypothetical $10,000 investment in
each of the Atlas Bond and Stock Funds as compared to a representative total
return index for the market(s) in which each fund invests. Index performance
does not include sales charges or management expenses, and the mix, quality and
maturity of securities in an index may vary widely from those in our Funds'
portfolios. All returns reflect the reinvestment of dividends and capital gains,
if applicable. Atlas Fund returns are for Class A shares only, and reflect the
maximum 3% sales charge. Returns for Class B shares will differ. As always, past
performance is no guarantee of future results.
<TABLE>
<S> <C>
California Municipal Bond Fund California Insured Intermediate Municipal Fund
National Municipal Bond Fund National Insured Intermediate Municipal Fund
LOGO LOGO
U.S. Government Intermediate Fund U.S. Government and Mortgage Securities Fund
LOGO
LOGO
</TABLE>
11
<PAGE> 12
Comparing Atlas Fund Performance To The Market
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Strategic Income Fund Balanced Fund
LOGO LOGO
Growth and Income Fund Strategic Growth Fund
LOGO
LOGO
Global Growth Fund
LOGO
</TABLE>
12
<PAGE> 13
(This page has been left blank intentionally.)
13
<PAGE> 14
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas U.S. Treasury Money Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
UNITED STATES TREASURY
BILLS - 99.92%
4.87% - 4.98% due
01/09/97 - 04/17/97............. $ 47,492,000 $ 47,097,737
5.00% - 5.03% due
01/09/97 - 04/17/97............. 18,532,000 18,448,816
----------
Total United States Treasury Bills (cost:
$65,546,553) 65,546,553
----------
TOTAL SECURITIES (COST: $65,546,553) - 99.92% 65,546,553
OTHER ASSETS AND LIABILITIES, NET - .08% 52,899
----------
NET ASSETS - 100.00% $ 65,599,452
==========
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER - 14.45%
East Bay Municipal Utility
District, 3.40% due 01/28/97..... $ 1,000,000 $ 1,000,000
Long Beach, Harbor Department
Revenue, Series A, AMT, 3.50% due
02/06/97......................... 1,400,000 1,400,000
Puerto Rico, Government
Development Bank, 3.55% due
02/06/97......................... 1,500,000 1,500,000
Sacramento, Municipal Utility
District, Series I, 3.30% due
01/30/97......................... 1,500,000 1,500,000
----------
Total Tax-Exempt Commercial Paper (cost:
$5,400,000) 5,400,000
----------
FIXED RATE BONDS AND NOTES - 21.00%
California Housing Finance Agency,
Revenue Home Mortgage, Series A,
MBIA Insured, 4% due 08/01/98.... 700,000 700,777
Contra Costa, Water Authority,
Series A, FGIC Insured, 4.30% due
10/01/97......................... 500,000 502,155
Kern, High School District, Series
A, MBIA Insured, 5.80% due
02/01/97......................... 200,000 200,385
Los Angeles, Unified School
District, Tax and Revenue
Anticipation Notes, Series B,
4.50% due 09/30/97............... 1,000,000 1,005,773
Los Angeles County, Transportation
Commission Sales Tax Revenue,
Series A, 4.50% due 06/30/97..... 1,000,000 1,003,090
Metropolitan Water District of
Southern California Refunding,
Series A3, 4.10% due 03/01/97.... 100,000 100,066
Paramount Unified School District,
Tax and Revenue Anticipation
Notes, 4.50% due 06/30/97........ 1,000,000 1,002,369
Riverside County, Transportation
Commission Sales Tax Revenue,
Series A, AMBAC Insured, 4.40%
due 06/01/97..................... 250,000 250,810
Sacramento County, Tax and Revenue
Anticipation Notes, 4.50% due
09/30/97......................... 1,000,000 1,004,563
<CAPTION>
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
San Francisco City & County, City
Hall Improvement Project, Series
A, FGIC Insured, 7% due
06/15/97......................... $ 800,000 $ 811,924
Santa Ana, COP, Santa Ana
Recycling Project, Series A, AMT,
AMBAC Insured, 3.90% due
05/01/97......................... 230,000 230,000
Whittier, Health Facility,
Presbyterian Intercommunity
Hospital, Revenue Pre-Refunded,
MBIA Insured, 6.50% due
06/01/97......................... 1,000,000 1,031,659
----------
Total Fixed Rate Bonds and Notes (cost:
$7,843,571) 7,843,571
----------
VARIABLE RATE DEMAND NOTES* - 65.04%
ABAG Finance Authority for
Nonprofit Corps, University of
California Project, 4.10% due
12/01/01......................... 1,000,000 1,000,000
Alameda-Contra Costa, School
Financing Authority, 3.75% due
07/01/16......................... 1,000,000 1,000,000
Eastern Municipal Water District,
Water and Sewer Revenue, COP,
FGIC Insured, 4% due 07/01/20.... 700,000 700,000
Glendale, Revenue Reliance
Development, Public Parking,
3.50% due 12/01/14............... 500,000 500,000
Lassen Municipal Utility District,
Revenue Refunding, Series A, AMT,
FSA Insured, 4.20% due
05/01/08......................... 1,000,000 1,000,000
Los Angeles, Community
Redevelopment Agency, COP,
Baldwin Hills Public Park, 3.70%
due 12/01/14..................... 600,000 600,000
Los Angeles, Community
Development, COP, Willowbrook
Project, 3.95% due 11/01/15...... 500,000 500,000
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, 4.95% due 12/01/24..... 200,000 200,000
Series F, 4.95% due 12/01/24..... 200,000 200,000
Series G, 4.95% due 12/01/24..... 300,000 300,000
Los Angeles County, Regional
Airports Improvement Corp.,
Terminal Facilities Completion
Revenue, Los Angeles
International Airport, AMT, 5%
due 12/01/25..................... 1,300,000 1,300,000
Moorpark, Multi-Family Housing
Revenue Refunding, Le Club
Apartments Project, Series A,
4.05% due 11/01/15............... 700,000 700,000
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
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE> 15
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Riverside, Multi-Family Revenue
Refunding, Sierra Apartments,
Series A, 4.05% due 06/01/05..... $ 500,000 $ 500,000
Riverside County, Tax and Revenue
Anticipation Notes, Series B,
3.90% due 06/30/97............... 1,000,000 1,000,000
Sacramento, Multi-Family Housing
Revenue, SmokeTree Apartments,
Series A, 4.05% due 04/15/10..... 1,000,000 1,000,000
San Bernardino County, Industrial
Development Revenue, Tower
Industries, Series IV, AMT, 2.85%
due 12/01/06..................... 875,000 875,000
San Diego County, Multi-Family
Housing Revenue, Country Hills,
Series A, 4.05% due 08/15/13..... 480,000 480,000
San Jose, Multi-Family Mortgage
Revenue, Somerset Park, Series A,
AMT, 3.90% due 11/01/17.......... 1,600,000 1,600,000
State Educational Facilities
Authority Revenue Refunding,
Educational Achievement, Series
A, 4.10% due 07/01/26............ 300,000 300,000
State Health Facilities Financing
Authority Revenue Refunding,
Catholic Healthcare West, Series
A, MBIA Insured, 4% due
07/01/09......................... 600,000 600,000
Children's Hospital, MBIA
Insured, 4% due 11/01/21......... 100,000 100,000
Enloe Memorial Hospital, Series
A, 4.25% due 01/01/16............ 200,000 200,000
Pool Program, Series 1990A, 4%
due 09/01/20..................... 700,000 700,000
State Pollution Control Financing
Authority, Industrial Development
Revenue, Southdown, Inc., 3.50%
due 4/15/98...................... 100,000 100,000
State Pollution Control Financing
Authority, Pollution Control
Revenue Refunding,
Pacific Gas & Electric, Series B,
AMT, 4% due 12/01/16............. 1,000,000 1,000,000
Southdown, Inc., Series B, 3.50%
due 09/15/98..................... 600,000 600,000
State Pollution Control Financing
Authority, Resource Recovery
Revenue Refunding,
Burney Forest Products Project,
Series A, AMT, 4.80% due
09/01/20......................... 1,100,000 1,100,000
Ultra Power, Malaga, Series A,
5.50% due 04/01/17............... 400,000 400,000
State Revenue Anticipation Notes,
Series C, 4% due 06/30/97........ 500,000 500,000
Statewide Communities Development
Corp. Revenue, Industrial
Development,
Johanson Project, Series E, 3.25%
due 11/01/20..................... 600,000 600,000
Karcher Property Project, Series
C, AMT, 4% due 12/01/19.......... 1,000,000 1,000,000
Setton Properties Project, AMT,
4.15% due 10/01/10............... 1,000,000 1,000,000
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
Staub Project, Series A, AMT,
4.05% due 08/01/02............... $ 640,000 $ 640,000
Tri-Valley Industrial
Development, Series F, AMT, 4%
due 12/01/10..................... 700,000 700,000
----------
Total Variable Rate Demand Notes (cost:
$24,295,000) 24,295,000
----------
TOTAL SECURITIES (COST: $37,538,571) - 100.49% 37,538,571
OTHER ASSETS AND LIABILITIES, NET - (.49)% (183,892)
----------
NET ASSETS - 100.00% $ 37,354,679
==========
Atlas National Municipal Money Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
TAX-EXEMPT COMMERCIAL PAPER - 6.66%
Municipal Electric Authority,
Georgia, Project One, Series E,
3.55% due 02/10/97............... $ 200,000 $ 200,000
West Virginia, Public Energy
Authority, Energy Revenue,
Morgantown Association Project,
AMT, 3.60% due 02/10/97.......... 300,000 300,000
----------
Total Tax-Exempt Commercial Paper (cost: $500,000) 500,000
----------
FIXED RATE BONDS AND NOTES - 40.58%
Ann Arbor, Michigan, School
District, Public Schools
Refunding, 4.75% due 05/01/97.... 200,000 200,558
Austin, Texas Independent School
District Refunding, 4.60% due
08/01/97......................... 250,000 251,052
Chicago, Illinois Wastewater
Transmission Revenue Refunding,
FGIC Insured, 4.15% due
01/01/97......................... 200,000 200,000
Fargo, North Dakota, Refunding,
Series B, 3.80% due 07/01/97..... 100,000 99,875
Grand River Dam Authority,
Oklahoma Revenue Refunding, BIG
Insured,
6.45% due 06/01/97............... 300,000 309,216
6.25% due 06/01/97............... 105,000 108,097
Green River-Sweetwater County,
Wyoming, Joint Powers Water Board
Revenue Refunding, FSA Insured,
4.25% due 03/01/97............... 125,000 125,039
Hawaii, State Refunding, Series
CD, 4.10% due 02/01/97........... 250,000 250,061
Memphis-Shelby County, Tennessee
Airport Authority, Airport
Revenue Refunding, Series A, MBIA
Insured, 4% due 02/15/97......... 250,000 250,025
Mesquite, Texas, FGIC Insured,
5.25% due 02/15/97............... 145,000 145,258
Niles, Illinois, Public Library
District, FSA Insured, 5.60% due
12/01/97......................... 100,000 101,590
</TABLE>
15
<PAGE> 16
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Stillwater, Minnesota, Independent
School District #834, FGIC
Insured, 6.25% due 02/01/97...... $ 250,000 $ 250,531
Texas State Tax and Revenue
Anticipation Notes, 4.75% due
08/29/97......................... 200,000 201,534
Vermont State, 6.80% due
02/01/97......................... 135,000 135,344
Washington State Refunding, Series
R-92C, 4.90% due 09/01/97........ 100,000 100,702
Whiting, Indiana, Industrial
Pollution Control Revenue, Amoco
Project, Standard Oil Industrial,
3.80% due 02/15/97............... 320,000 320,000
----------
Total Fixed Rate Bonds and Notes (cost:
$3,048,882) 3,048,882
----------
VARIABLE RATE DEMAND NOTES* - 52.30%
Chicago, Illinois, O'Hare
International Airport, Series B,
AMT, 4.20% due 01/01/18.......... 400,000 400,000
Dubuque, Iowa, Industrial
Development Revenue, Swiss Valley
Farms Co. Project, AMT, 4.40% due
12/01/01......................... 100,000 100,000
Florida, Housing Finance Agency,
Multi-Family Refunding, Series E,
4.30% due 04/01/26............... 200,000 200,000
Forsyth, Montana, Pollution
Control Revenue, Portland General
Electric, Series C, 4.15% due
06/01/13......................... 300,000 300,000
Fort Wayne, Indiana Hospital
Authority, Parkview Memorial
Hospital, Series D, 4.15% due
01/01/16......................... 200,000 200,000
Grand Prairie, Texas Housing
Finance Corp., Multi-Family
Housing Revenue Refunding,
Winridge Grand Prairie, 4.20% due
06/01/10......................... 300,000 300,000
Illinois, Development Finance
Authority Revenue, Residential
Rental, F.C. Harris Pavilion
Project, AMT, FNMA Insured, 4.10%
due 04/01/24..................... 200,000 200,000
Lakewood, Colorado, Industrial
Development Revenue, Service
Merchandise Co. Project, 3.70%
due 12/15/99..................... 200,000 200,000
Marion County, West Virginia,
County Commission Solid Waste
Disposal Facility Revenue,
Granttown Project, Series A, AMT,
4.25% due 10/01/17............... 100,000 100,000
Naperville, Illinois, Industrial
Development Revenue, Service
Merchandise Co. Project, 3.70%
due 11/30/24..................... 300,000 300,000
Prairie Du Chien, Wisconsin,
Industrial Development Revenue,
Oxford International Ltd.
Project, AMT, 4.40% due
06/01/02......................... 400,000 400,000
Rockwall, Texas Industrial
Development Corp., Industrial
Development Revenue, Columbia
Extrusion Corp., AMT, 4.05% due
07/01/14......................... 335,000 335,000
Atlas National Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
St. Louis, Missouri Industrial
Development Authority, Service
Merchandise Corp. Inc. Project,
3.70% due 09/15/98............... $ 100,000 $ 100,000
Texas, North Texas Higher
Education Authority, Inc., Texas
Student Loan Revenue Refunding,
Series A, AMT, AMBAC Insured,
4.25% due 04/01/36............... 100,000 100,000
Series F, AMT, AMBAC Insured,
4.25% due 04/01/20............... 200,000 200,000
Utah State Board of Regents,
Student Loan Revenue, Series C,
AMT, 3.60% due 07/01/17.......... 300,000 300,000
Winston-Salem, North Carolina,
COP, Risk Acceptance Management
Corp., 3.15% due 07/01/09........ 195,000 195,000
----------
Total Variable Rate Demand Notes (cost:
$3,930,000) 3,930,000
----------
TOTAL SECURITIES (COST: $7,478,882) - 99.54% 7,478,882
OTHER ASSETS AND LIABILITIES, NET - .46% 34,815
----------
NET ASSETS - 100.00% $ 7,513,697
==========
Atlas California Insured Intermediate
Municipal Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
BONDS - 95.58%
Contra Costa, Transportation
Authority
Sales Tax Revenue, Series A, FGIC
Insured, 6% due 03/01/08......... $ 500,000 $ 543,240
Cupertino Unified School District,
Series A, FGIC Insured,
6.75% due 08/01/05............... 500,000 571,310
Elk Grove Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured, 6.50% due 12/01/06...... 600,000 680,717
Folsom School Facilities Project,
Series B, FGIC Insured,
6% due 08/01/98.................. 425,000 439,221
6% due 08/01/99.................. 225,000 235,762
Fresno Water System Revenue, Water
Remediation Project, Series A,
FGIC Insured,
7.50% due 06/01/04............... 500,000 587,130
7.50% due 06/01/05............... 715,000 846,145
Kern High School District
Refunding,
Series A, MBIA Insured,
6% due 08/01/04.................. 500,000 543,030
Lincoln Unified School District,
Special
Tax Refunding, Community
Facilities
District 1, AMBAC Insured,
6% due 09/01/06.................. 580,000 629,080
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE> 17
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Insured Intermediate
Municipal Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Los Angeles County, Metropolitan
Transportation Authority
Sales Tax Revenue, Proposition C,
AMBAC Insured, Second Series A,
5.90% due 07/01/06............... $ 500,000 $ 542,360
Second Series B,
8% due 07/01/00.................. 500,000 558,835
Los Angeles County, Transportation
Commission, Sales Tax Revenue
Refunding, Series A, FGIC
Insured,
6.75% due 07/01/18............... 1,000,000 1,116,230
Los Angeles Wastewater System
Revenue, Series B, AMBAC Insured,
5.90% due 06/01/03............... 450,000 482,711
Series B, MBIA Insured,
8.80% due 06/01/99............... 290,000 320,968
Northern California Power Agency,
Public Power Revenue, MBIA
Insured, 6.125% due 08/15/99..... 400,000 420,228
Port of Oakland, Port Revenue,
Series E, AMT, MBIA Insured, 6%
due 11/01/02..................... 500,000 533,655
Puerto Rico, Electric Power
Authority
Power Revenue, MBIA Insured,
Series W, 6.50% due 07/01/05..... 250,000 282,545
Series Y, 6.50% due 07/01/06..... 500,000 564,240
Puerto Rico, Public Buildings
Authority
Revenue, Gtd. Government
Facilities,
Series A, AMBAC Insured,
6.75% due 07/01/04............... 700,000 796,936
Riverside County Transportation
Commission, Sales Tax Revenue,
Series A, AMBAC Insured,
6.625% due 06/01/02.............. 1,000,000 1,109,790
Sacramento Municipal Utility
District,
Electric Revenue Refunding,
Series Z,
FGIC Insured, 6% due 07/01/02.... 475,000 510,069
San Francisco Bay Area Rapid
Transit
District, Sales Tax Revenue,
FGIC Insured, 6.20% due
07/01/01....................... 750,000 805,523
San Francisco City and County
Airport
Commission, International Airport
Revenue Refunding, Second Series
Issue 12, FGIC Insured,
5.625% due 05/01/06.............. 500,000 524,565
Santa Margarita-Dana Point
Authority
Revenue Refunding, Improvement
District 3, 3A, 4, and 4A,
Series B, MBIA Insured,
7.25% due 08/01/07............... 500,000 592,465
State Housing Finance Agency
Revenue,
Home Mortgage, AMT, MBIA Insured,
Series C, 5.25% due 08/01/06..... 580,000 582,575
Series L, 5.55% due 08/01/05..... 800,000 813,448
State Housing Finance Agency
Revenue,
Multi-Family Housing, Series B,
AMT, AMBAC Insured,
5.10% due 08/01/03............... 350,000 351,848
5.25% due 08/01/04............... 495,000 497,896
Atlas California Insured Intermediate
Municipal Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
State Pollution Control Financing
Authority, Pollution Control
Revenue, Southern California
Edison, Series A, AMT,MBIA
Insured, 6.90% due 09/01/06...... $ 410,000 $ 440,533
Tri-City Hospital District Revenue
Refunding, Series A, MBIA
Insured,
6% due 2/15/03................... 700,000 751,233
Turlock Irrigation District
Revenue
Refunding, Series A, MBIA
Insured,
5.90% due 01/01/02............... 80,000 85,109
6% due 01/01/07.................. 1,000,000 1,084,500
University of Puerto Rico,
University
Revenue Refunding, Series N, MBIA
Insured, 6% due 06/01/99......... 500,000 522,915
Westside Unified School District
Refunding, Series C, AMBAC
Insured,
6% due 08/01/14.................. 300,000 322,026
----------
Total Bonds (cost: $19,192,328) 19,688,838
----------
VARIABLE RATE DEMAND NOTES* - 2.43%
Los Angeles, Regional Airports
Improvement Authority, Series A,
4.95% due 12/01/24............... 100,000 100,000
Los Angeles County, Regional
Airports Improvement Corp.,
Terminal Facilities Completion
Revenue, Los Angeles
International Airport, AMT, 5%
due 12/01/25..................... 400,000 400,000
----------
Total Variable Rate Demand Notes (cost: $500,000) 500,000
----------
TOTAL SECURITIES (COST: $19,692,328) - 98.01% 20,188,838
OTHER ASSETS AND LIABILITIES, NET - 1.99% 409,185
----------
NET ASSETS - 100.00% $ 20,598,023
==========
Atlas National Insured Intermediate
Municipal Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
BONDS - 97.29%
Avondale, Michigan School
District, AMBAC Insured, 5.625%
due 05/01/07..................... $ 200,000 $ 209,484
Boulder, Larimer & Weld Counties,
Colorado, Saint Vrain Valley
School District RE1J Refunding,
Series A, MBIA Insured, 5.80% due
12/15/07......................... 500,000 525,255
Cook County, Illinois, MBIA
Insured,
7.25% due 11/01/07............... 620,000 735,537
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 1,120,720
</TABLE>
17
<PAGE> 18
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Insured Intermediate
Municipal Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
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 $ 643,980
Eagle, Garfield & Routt Counties,
Colorado, School District RE50J,
FGIC Insured, 6.10% due
12/01/03......................... 400,000 436,472
Fowlerville, Michigan, Community
Schools, School District,
MBIA-SBLF Insured, 6.50% due
05/01/05......................... 550,000 610,363
Fresno, California, Water System
Revenue, Water Remediation
Project, Series A, FGIC Insured,
7.50% due 06/01/03............... 600,000 696,462
Johnson County, Kansas, Refunding,
Internal Improvement, Series A,
FSA
Insured, 5.60% due 09/01/03...... 500,000 527,980
Massachusetts, State Construction
Loan, Series A, FGIC Insured,
6.90% due 03/01/04............... 30,000 31,661
North Reading, Massachusetts,
Refunding, MBIA Insured, 6.30%
due 06/15/01..................... 500,000 538,675
Pawtucket, Rhode Island, FGIC
Insured, 7.75% due 04/15/98...... 750,000 786,660
Pinal County, Arizona, Unified
School District 43, Apache JCT,
Series A, FGIC Insured, 6.80% due
07/01/09......................... 425,000 487,186
Port Houston Authority, Texas,
Harris County Improvement, AMT,
FGIC Insured, 6% due 10/01/06.... 600,000 642,930
Puerto Rico Commonwealth
Refunding, Public Improvement,
MBIA Insured, 5.50% due
07/01/01......................... 200,000 209,558
Rhode Island, Housing and Mortgage
Finance Corp., Multi-Family
Housing, Series A, AMBAC Insured,
5.55% due 07/01/05............... 500,000 512,935
Rhode Island, State Refunding,
Series A, FGIC Insured, 6% due
06/15/02......................... 500,000 534,415
Shawnee County, Kansas, Unified
School District 501, FGIC
Insured, 7.30% due 02/01/02...... 250,000 281,093
Tarrant County, Texas, Health
Facilities Development Corp.,
Health System
Revenue Refunding, Harris
Methodist Health System, Series
A, AMBAC Insured, 6% due
09/01/04......................... 750,000 805,613
Atlas National Insured Intermediate
Municipal Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
Thornton, Colorado, Water
Refunding, FGIC Insured, 5.65%
due 12/01/03..................... $ 600,000 $ 638,538
University of Colorado, University
Revenue Refunding, Resh Building
Revolving Fund, MBIA Insured, 6%
due 06/01/05..................... 620,000 670,542
Wareham, Massachusetts, School
Project
Loan Bonds, AMBAC Insured,
6.60% due 01/15/99............... 110,000 115,372
Westminster, Colorado, Sales & Use
Tax
Refunding Revenue, Series A, FGIC
Insured, 6.25% due 12/01/12...... 500,000 528,500
Wisconsin, State Health and
Educational Facilities Authority
Revenue, Aurora Medical Group,
Inc. Project, FSA Insured, 5.75%
due 11/15/07..................... 500,000 525,980
----------
Total Bonds (cost: $12,445,575) 12,815,911
----------
VARIABLE RATE DEMAND NOTES* - 1.52%
Grapevine, Texas, Industrial
Development Corp., American
Airlines, Series A1,
4.95% due 12/01/24............... 100,000 100,000
Schuylkill County, Pennsylvania,
Industrial Development Authority
Revenue, Pine Grove Landfill,
AMT, 5.70% due 10/01/19.......... 100,000 100,000
----------
Total Variable Rate Demand Notes (cost: $200,000) 200,000
----------
TOTAL SECURITIES (COST: $12,645,575) - 98.81% 13,015,911
OTHER ASSETS AND LIABILITIES, NET - 1.19% 156,533
----------
NET ASSETS - 100.00% $ 13,172,444
==========
Atlas U.S. Government Intermediate Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
U.S. GOVERNMENT AGENCIES - 99.34%
Federal Home Loan Mortgage
Corporation, 5.22% due
01/21/97......................... $ 287,000 $ 283,466
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE> 19
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas U.S. Government Intermediate Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Federal National Mortgage
Association
5.17% due 02/04/97............... $ 65,000 $ 64,300
5.19% due 02/19/97............... 145,000 143,202
5.20% due 01/13/97 - 03/04/97.... 470,000 464,622
5.22% due 01/13/97 - 02/24/97.... 250,000 247,247
5.26% due 03/13/97............... 100,000 98,743
5.35% - 5.50% due 01/01/03....... 423,698 421,849
6.00% due 04/01/01 - 12/01/02.... 2,927,214 2,860,327
6.50% due 11/01/02............... 1,868,432 1,853,167
7.00% due 11/01/25............... 1,192,046 1,166,774
----------
Total U.S. Government Agencies (cost: $7,728,619) 7,603,697
----------
TOTAL SECURITIES (COST: $7,728,619) - 99.34% 7,603,697
OTHER ASSETS AND LIABILITIES, NET - .66% 50,819
----------
NET ASSETS - 100.00% $ 7,654,516
==========
Atlas California Municipal Bond Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
BONDS - 97.90%
Acalanes Unified High School
District,
Series C, FGIC Insured,
6.25% due 08/01/14............... $ 500,000 $ 522,370
6.25% due 08/01/15............... 500,000 522,370
Alameda County, COP, BIG Insured,
7.25% due 12/01/08............... 1,000,000 1,124,880
Benicia Unified School District,
Series A, AMBAC Insured,
6.85% due 08/01/16............... 1,000,000 1,102,530
Big Bear Lake, Water Revenue
Refunding, FGIC Insured, 6.25%
due 04/01/12..................... 500,000 551,725
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 1,777,286
Un-Refunded, Series A, MBIA
Insured,
6.75% due 08/01/22............... 660,000 724,977
Burbank, Glendale, Pasadena
Airport Authority, Airport
Revenue Refunding, AMBAC Insured,
6.40% due 06/01/10............... 2,000,000 2,129,380
Calleguas Municipal Water
District, COP, System Improvement
Project, AMBAC Insured, 6.25% due
07/01/11......................... 1,680,000 1,841,935
Central Coast Water Authority,
California Revenue Refunding,
State Water Project, Regional
Facilities, Series A, AMBAC
Insured, 5% due 10/01/22......... 1,250,000 1,157,887
Contra Costa Water District, Water
Treatment Revenue Refunding,
Series G, MBIA Insured, 5.90% due
10/01/08......................... 3,600,000 3,822,192
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Cotati-Rohnert Park Unified School
District, Series A, FGIC Insured,
6% due 08/01/14.................. $ 845,000 $ 871,753
6% due 08/01/15.................. 905,000 935,209
East Bay, Municipal Utility
District Water System Revenue
Refunding, FGIC Insured, 4.75%
due 06/01/21..................... 1,500,000 1,333,185
Elk Grove Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured, 6.50% due 12/01/24...... 1,500,000 1,726,860
Kern High School District,
Series 1990-C, MBIA Insured,
6.25% due 08/01/12............... 1,200,000 1,329,287
Long Beach Harbor Revenue, AMT,
MBIA Insured, 5.25% due
05/15/25......................... 2,000,000 1,860,760
Los Angeles Convention and
Exhibition Center Authority
Refunding, COP Refunding, AMBAC
Insured, 7% due 08/15/08......... 500,000 555,875
Los Angeles Department of Water
and Power, Electric Plant
Revenue,
7.10% due 01/15/31............... 500,000 556,910
7.125% due 05/15/30.............. 1,875,000 2,064,506
Los Angeles, Harbor Development
Revenue, 7.60% due 10/01/18...... 140,000 172,742
Los Angeles, Wastewater System
Revenue Refunding,
Series A, MBIA Insured, 5.878%
due 06/01/24..................... 2,250,000 2,294,685
Series B, AMBAC Insured, 6.25%
due 06/01/12..................... 2,500,000 2,658,125
Series C, AMBAC Insured, 7% due
06/01/11......................... 1,000,000 1,073,120
Series D, MBIA Insured, 6.70% due
12/01/21......................... 3,000,000 3,323,940
Los Angeles County, Public Works
Financing Authority Lease
Revenue, Series B, MBIA Insured,
5.25% due 09/01/15............... 1,000,000 970,980
Los Angeles County, Sanitation
District Financing Authority
Revenue Capital Project, Series
A, MBIA Insured, 5.25% due
10/01/19......................... 1,000,000 947,820
Los Angeles County, Transportation
Commission, Sales Tax Revenue,
Proposition C,
Second Series A, MBIA Insured,
6.25% due 07/01/13............... 8,980,000 9,579,235
Series B, AMBAC Insured, 6.50%
due 07/01/13..................... 1,750,000 1,901,113
Maritime Infrastructure Authority
Airport Revenue, San Diego
University, Port District
Airport, AMT, AMBAC Insured, 5%
due 11/01/20..................... 9,500,000 8,626,760
MSR Public Power Agency, San Juan
Project Revenue,
Series C, BIG Insured, 6.625% due
07/01/13......................... 1,300,000 1,328,677
Series E, MBIA Insured, 6.75% due
07/01/11......................... 3,000,000 3,291,690
</TABLE>
19
<PAGE> 20
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Manhattan Beach Unified School
District, Series A, FGIC Insured,
0% due 09/01/16.................. $ 2,690,000 $ 880,517
Marin Municipal Water District
Water Revenue, MBIA Insured,
5.65% due 07/01/23............... 2,000,000 1,967,620
Metropolitan Water District of
Southern California Waterworks
Revenue,
6.625% due 07/01/12.............. 4,540,000 5,031,864
5.50% due 07/01/19............... 2,500,000 2,440,150
Series G, 6.50% due 03/01/12..... 2,500,000 2,636,825
Mountain View Capital Improvements
Financing Authority Revenue, City
Hall Community Theater, MBIA
Insured, 6.25% due 08/01/12...... 1,500,000 1,592,820
New Haven Unified School District
Refunding, MBIA Insured, 5.75%
due 08/01/11..................... 925,000 950,669
Northern California Power Agency
Public Power Revenue Refunding,
Hydroelectric Project 1, Series
A, AMBAC Insured, 7.50% due
07/01/23......................... 50,000 63,076
MBIA Insured, 6.25% due
07/01/12........................ 1,500,000 1,595,835
Oakland Redevelopment Agency,
Revenue Refunding, Pension
Financing, Series A, FGIC
Insured, 7.60% due 08/01/21...... 1,250,000 1,337,387
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 2,167,680
Pleasanton Unified School
District, Series F, FGIC Insured,
6.25% due 08/01/14............... 570,000 597,497
6.25% due 08/01/15............... 610,000 639,426
6.25% due 08/01/16............... 650,000 681,356
Puerto Rico Commonwealth
Refunding, MBIA Insured, 6.25%
due 07/01/12..................... 1,000,000 1,105,170
Puerto Rico Public Buildings
Authority Revenue, Series A,
AMBAC Insured,
6.25% due 07/01/10............... 1,000,000 1,106,080
6.25% due 07/01/14............... 1,000,000 1,106,270
Redding Joint Powers Financing
Authority, Electric Systems
Revenue Refunding, Series A, MBIA
Insured, 5.25% due 06/01/15...... 2,000,000 1,942,460
Riverside Electric Revenue, 6% due
10/01/15......................... 1,500,000 1,515,240
Rural Home Mortgage Financing
Authority, Single Family Revenue
Refunding, Series C, AMT, 7.50%
due 08/01/27..................... 1,465,000 1,624,729
Sacramento Municipal Utility
District Electric Revenue
Refunding, Series Z, FGIC
Insured, 6.45% due 07/01/10...... 2,500,000 2,680,325
San Bernardino County, COP,
Medical Center Financing Project,
MBIA Insured, 5% due 08/01/28.... 1,500,000 1,375,575
San Bernardino County
Transportation Authority Sales
Tax Revenue, Series A, FGIC
Insured, 6% due 03/01/10......... 2,500,000 2,639,350
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
San Bernardino Health Care System
Revenue, Sisters of Charity,
Series A, 7% due 07/01/21........ $ 3,230,000 $ 3,622,607
San Diego Public Safety
Communication Project, 6.50% due
07/15/09......................... 1,525,000 1,722,457
San Francisco City and County,
Series 95 A & B, FGIC Insured,
5.50% due 06/15/13............... 1,145,000 1,151,114
Series E, 6.50% due 06/15/11..... 2,220,000 2,340,613
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 3,210,420
6.50% due 05/01/13............... 2,000,000 2,178,340
San Francisco City and County
Public Utilities Commission Water
Revenue Refunding, Series A,
6% due 11/01/15.................. 1,000,000 1,025,580
6.50% due 11/01/17............... 1,000,000 1,107,130
San Francisco City and County
Sewer Revenue Refunding, AMBAC
Insured,
6% due 10/01/11.................. 2,280,000 2,381,620
5.50% due 10/01/15............... 1,250,000 1,231,213
San Jose Redevelopment Agency Tax
Allocation, Merged Area
Redevelopment Project Refunding,
MBIA Insured, 5% due 08/01/20.... 2,500,000 2,292,600
Santa Barbara, Revenue COP,
Retirement Services, 5.75% due
08/01/20......................... 2,000,000 1,969,440
Santa Clara Electric Revenue,
Series A, MBIA Insured, 6.25% due
07/01/19......................... 3,750,000 3,947,963
Santa Clara Local Government
Finance Authority Revenue
Refunding, BIG Insured, 7.25% due
02/01/13......................... 250,000 271,210
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 2,398,920
Santa Monica, Malibu Unified
School District, Public School
Facilities Reconstruction
Projects A, 6.90% due 08/01/11... 500,000 551,850
Saugus Unified School District,
Series A, MBIA Insured, 5.65% due
09/01/11......................... 2,035,000 2,072,485
Southern California Public Power
Authority Power Project Revenue
Refunding, Hydroelectric Hoover
Uprating Project, Series A,
6.625% due 10/01/05.............. 600,000 656,616
Southern California Public Power
Authority Transmission Project
Revenue Refunding, Southern
Transportation System, 5.75% due
07/01/10......................... 2,000,000 2,014,820
Southern California Rapid Transit
District, COP, Workers
Compensation Fund, MBIA Insured,
6% due 07/01/10.................. 1,000,000 1,044,850
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE> 21
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
State, Refunding, AMBAC Insured,
5.25% due 06/01/21............... $ 1,000,000 $ 961,390
State, Various Purpose, 6.125% due
10/01/11......................... 1,000,000 1,090,040
State Department of Water
Resources Central Valley Project
Revenue,
Series J-2, 6.125% due
12/01/13........................ 2,225,000 2,315,914
Series J-3, 5.50% due 12/01/23... 3,000,000 2,921,790
Series O, 5% due 12/01/15........ 2,000,000 1,867,640
Series O, 4.75% due 12/01/25..... 4,000,000 3,474,560
State Educational Facilities
Authority Revenue Refunding,
Pepperdine University, MBIA
Insured, 6.10% due 03/15/14...... 2,595,000 2,721,325
Santa Clara University, MBIA
Insured, 5.75% due 09/01/18...... 3,255,000 3,261,315
State Health Facilities Financing
Authority Revenue Refunding,
Adventist Health System West,
Series B, MBIA Insured, 6.40% due
03/01/02......................... 1,000,000 1,081,670
Catholic Healthcare West, Series
A, AMBAC Insured, 7% due
07/01/20......................... 800,000 868,856
Sutter Health Systems, Series A,
AMBAC-TCRS Insured, 6.70% due
01/01/13......................... 1,000,000 1,049,610
State Housing Finance Agency
Revenue Home Mortgage, Series H,
AMT, FHA/VA Insured, 6.15% due
08/01/16......................... 2,020,000 2,053,350
Series K, MBIA Insured, 6.15% due
08/01/16......................... 3,000,000 3,076,290
Series Q, MBIA Insured, 5.85% due
08/01/16......................... 1,000,000 1,002,590
State Housing Finance Agency
Revenue, Multi-Family Housing,
Series B, AMT, AMBAC Insured,
6.05% due 08/01/16............... 2,000,000 2,021,460
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 2,008,160
Southern California Edison, AMT,
MBIA Insured, 6.90% due
12/01/17......................... 1,000,000 1,097,090
Truckee, Donner Public Utility
District, COP, Water System
Improvement Project, MBIA
Insured, 6.75% due 11/15/21...... 1,000,000 1,123,330
Turlock Irrigation District
Revenue Refunding, Series A, MBIA
Insured, 6% due 01/01/10......... 1,000,000 1,075,890
Vallejo Revenue Water Improvement
Project, Series B, FGIC Insured,
6.50% due 11/01/14............... 4,000,000 4,534,200
Watsonville Water Revenue
Refunding, Series A, MBIA
Insured, 6% due 05/15/16......... 1,915,000 1,974,116
----------
Total Bonds (cost: $168,461,229) 179,131,119
----------
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
VARIABLE RATE DEMAND NOTES* - .55%
Los Angeles, Community
Redevelopment Agency, COP,
Willowbrook Project, 3.95% due
11/01/15......................... $ 300,000 $ 300,000
Los Angeles, Regional Airports
Improvement Corp. Lease Revenue,
American Airlines - LAX, Series
F, 4.95% due 12/01/24............ 100,000 100,000
Los Angeles County, Regional
Airports Improvement Corp.,
Terminal Facilities Completion
Revenue, Los Angeles
International Airport, AMT, 5%
due 12/01/25..................... 100,000 100,000
State Educational Facilities
Authority Revenue Refunding,
Foundation for Educational
Achievement, Series A, 4.10% due
07/01/26......................... 300,000 300,000
State Health Facilities Financing
Authority Revenue Refunding,
Catholic Healthcare West, Series
A, MBIA Insured, 4% due
07/01/09......................... 200,000 200,000
----------
Total Variable Rate Demand Notes (cost:
$1,000,000) 1,000,000
----------
TOTAL SECURITIES (COST: $169,461,229) - 98.45% 180,131,119
OTHER ASSETS AND LIABILITIES, NET - 1.55% 2,822,298
----------
NET ASSETS - 100.00% $182,953,417
==========
Atlas National Municipal Bond Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
BONDS - 95.98%
Adams County, Colorado, School
District 12, Series A, MBIA
Insured, 6.75% due 12/15/07...... $ 1,065,000 $ 1,230,469
Alabama State Docks Department,
Docks Facilities Revenue, AMT,
MBIA Insured, 6.10% due
10/01/13......................... 1,000,000 1,042,000
Alexandria, Louisiana, Utilities
Revenue, FGIC Insured, 8.20% due
05/01/07......................... 50,000 52,236
Anchorage, Alaska, Electric
Utility Revenue Refunding, Senior
Lien, MBIA Insured, 8% due
12/01/10......................... 985,000 1,237,702
Austin, Texas, Airport System
Revenue, Prior Lien, Series A,
AMT, MBIA Insured, 6.50% due
11/15/04......................... 1,000,000 1,104,770
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 1,575,765
California State Public Works
Board, Lease Revenue, Department
of Corrections, California State
Prison, Series B, MBIA Insured,
5.375% due 12/01/19.............. 1,150,000 1,108,151
</TABLE>
21
<PAGE> 22
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Central Coast Water Authority,
California Revenue Refunding
State Water Project, Regional
Facilities, Series A, AMBAC
Insured, 5% due 10/01/22......... $ 1,000,000 $ 926,310
Chicago, Illinois, Metropolitan
Water Reclamation District,
Greater Chicago Capital
Improvement, 7.25% due
12/01/12......................... 1,500,000 1,800,915
Chicago, Illinois, Park District
Aquarium & Museum, Series B,
6.50% due 11/15/13............... 2,500,000 2,680,425
Chicago, Illinois, Public Building
Commission Mortgage Revenue,
Board of Education, Series A,
MBIA Insured, 7.125% due
01/01/15......................... 125,000 136,564
Cleveland, Ohio, Waterworks
Revenue First Mortgage Refunding,
Series F-92B, AMBAC Insured,
6.25% due 01/01/16............... 1,000,000 1,058,550
Colorado, Housing Finance
Authority, Single Family Program,
Senior Series A-1, AMT, 7.40% due
11/01/27......................... 1,000,000 1,096,340
Colorado Springs, Colorado,
Utilities Revenue Refunding,
Series A, 6.50% due 11/15/15..... 2,000,000 2,147,900
Cumberland County, New Jersey,
Improvement Authority, Solid
Waste Disposal Revenue, FGIC
Insured, 6% due 01/01/01......... 500,000 524,815
Denton County, Texas Permanent
Improvement, AMBAC Insured, 5%
due 10/01/10..................... 1,000,000 937,150
Denver, Colorado, City & County
Refunding Water, 5% due
10/01/10......................... 1,500,000 1,470,675
Georgia, Municipal Electric
Authority Power Revenue, Series
O, 8.125% due 01/01/17........... 50,000 52,958
Harris County, Texas Toll Road,
Senior Lien, FGIC Insured, 5.375%
due 08/15/20..................... 1,000,000 958,030
Illinois Health Facilities
Authority Revenue Refunding,
Sherman Hospital Project, MBIA
Insured, 6.75% due 08/01/11...... 1,000,000 1,099,760
Indiana State Office Building
Commission, Capital Complex
Revenue, Senate Avenue Parking,
Series A, MBIA Insured, 7.25% due
07/01/12......................... 50,000 55,590
Jacksonville, Florida, Electric
Authority Revenue Refunding,
Saint John's River, Issue 2,
Series 5, 6.50% due 10/01/14..... 500,000 528,455
Kansas City, Kansas, Utility
System Revenue Refunding and
Improvement, FGIC Insured, 6.375%
due 09/01/23..................... 1,500,000 1,615,905
Kern, California High School
District, Series 1990-C Election,
MBIA Insured, 6.25% due
08/01/10......................... 545,000 604,160
Lakota, Ohio, Local School
District, AMBAC Insured, 7% due
12/01/09......................... 1,740,000 2,044,448
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
Lansing, Illinois, Refunding, FGIC
Insured, 8.25% due 12/01/07...... $ 25,000 $ 26,519
Maine State Housing Authority
Mortgage Purchase, Series A-1,
AMT, AMBAC Insured, 6.40% due
11/15/14......................... 1,400,000 1,430,506
Maricopa County, Arizona, Unified
School District 69, Paradise
Valley Refunding, MBIA Insured,
6.35% due 07/01/10............... 600,000 667,572
Massachusetts Bay Transportation
Authority, Massachusetts General
Transportation System, Series B,
FSA Insured, 5.25% due
03/01/20......................... 1,000,000 959,810
Massachusetts State Health and
Educational Facilities Authority
Revenue, Northeastern University,
Series E, MBIA Insured, 6.55% due
10/01/22......................... 500,000 548,165
Metropolitan Pier & Exposition
Authority, Illinois, Dedicated
State Tax Revenue, McCormick
Place Expansion Project, Series
A, 7.25% due 06/15/05............ 250,000 284,512
Michigan State University Revenue,
Series A, 6.125% due 08/15/08.... 500,000 525,760
Mississippi Higher Education
Assistance Corp. Student Loan
Revenue, Series C, AMT, 6.05% due
09/01/07......................... 950,000 972,106
Nevada Housing Division, Single
Family Mortgage, Series C, AMT,
FHA/VA Insured, 6.60% due
04/01/14......................... 1,000,000 1,030,300
New York City, New York, Municipal
Water Finance Authority, Water &
Sewer System Revenue, Series B,
FGIC Insured, 7.625% due
06/15/17......................... 125,000 133,511
New York State Dormitory Authority
Revenue, Pooled Capital Program,
FGIC Insured, 7.80% due
12/01/05......................... 165,000 177,788
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 1,011,540
Northern California Power Agency,
Public Power Revenue Refunding,
Hydroelectric Project 1, Series
A, MBIA Insured, 6.25% due
07/01/12......................... 750,000 797,918
Northumberland County,
Pennsylvania, Authority,
Commonwealth Lease Revenue,
Correctional Facility, MBIA
Insured, 6.25% due 10/15/09...... 750,000 808,260
Red River Authority, Texas,
Pollution Control Revenue,
Hoechst Celanese Corp. Project,
AMT, 6.875% due 04/01/17......... 1,500,000 1,608,945
Sacramento, California, Municipal
Utility District Electric Revenue
Refunding, Series Z, FGIC
Insured, 6.45% due 07/01/10...... 600,000 643,278
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE> 23
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Salt River Project, Arizona,
Agriculture Improvement and Power
District, Electric System
Revenue, Series A, 7.50% due
01/01/27......................... $ 50,000 $ 51,000
Springfield, Illinois, General
Obligation, 6.30% due 12/01/13... 100,000 105,451
Superior, Wisconsin, Limited
Obligation Revenue Refunding,
Midwest Energy Resources, Series
E, FGIC Insured, 6.90% due
08/01/21......................... 500,000 591,435
Tacoma, Washington, Electric
System Revenue, 7.50% due
01/01/12......................... 100,000 109,005
Tallassee, Alabama, Industrial
Development Board Revenue
Refunding, Dow United
Technologies Corp., Series B,
6.10% due 08/01/14............... 1,000,000 1,032,960
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 1,062,050
University of Maryland, System
Auxiliary Facility and Tuition
Revenue, Series A, 6.30% due
02/01/10......................... 500,000 536,885
University of Texas, Permanent
University Fund Refunding, 6.50%
due 07/01/11..................... 500,000 550,450
Utah State Board of Regents
Student Loan Revenue, Series N,
AMT, AMBAC Insured, 5.90% due
11/01/07......................... 1,000,000 1,047,210
Vallejo, California, Revenue,
Water Improvement Project, Series
B, FGIC Insured, 6.50% due
11/01/14......................... 1,000,000 1,133,550
Washington State Public Power
Supply System Refunding Revenue,
Nuclear Project 1 Revenue Pre-
Refunded, Series A, 7.50% due
07/01/15......................... 155,000 169,658
Nuclear Project 1 Revenue Un-
Refunded, Series A, 7.50% due
07/01/15......................... 105,000 114,930
Nuclear Project 2 Revenue
Refunding, Series A, 7.25% due
07/01/06......................... 500,000 572,645
Nuclear Project 2 Revenue
Refunding, Series B, 7% due
07/01/12......................... 140,000 154,045
Nuclear Project 3 Revenue
Refunding, Series B, 7.20% due
07/01/99......................... 250,000 266,183
Wayne Charter County, Michigan,
Airport Revenue Sub. Lien,
Detroit Metro Airport, Series A,
MBIA Insured, 6.50% due
12/01/11......................... 500,000 553,315
West Virginia School Building
Authority Revenue, Series A, MBIA
Insured,
7.25% due 07/01/15............... 50,000 55,590
Westminster, Colorado, Sales & Use
Tax Refunding Revenue, Series A,
FGIC Insured, 6.25% due
12/01/12......................... 1,500,000 1,585,500
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
Wisconsin State Health and
Educational Facilities Authority
Revenue, Aurora Medical Group,
Inc. Project, FSA Insured, 6% due
11/15/10......................... $ 1,000,000 $ 1,068,080
----------
Total Bonds (cost: $46,667,093) 49,476,475
----------
VARIABLE RATE DEMAND NOTES* - 2.91%
California Pollution Control
Financing Authority, Resource
Recovery Revenue, Burney Forest
Products Project, Series A, AMT,
4.80% due 09/01/20............... 100,000 100,000
Campbell County, Virginia,
Industrial Development Authority
Revenue, Exempt Facility, Hadson
Power 12, Series A, AMT, 3.90%
due 04/01/15..................... 800,000 800,000
Flint, Michigan, Hospital Building
Authority Revenue, Hurley Medical
Center, Series B, 3.55% due
07/01/15......................... 100,000 100,000
Schuylkill County, Pennsylvania,
Industrial Development Authority,
Pine Grove Landfill, AMT, 5.70%
due 10/01/19..................... 200,000 200,000
Southampton County, Virginia,
Industrial Development Authority
Revenue, Hadson Power 11, Series
A, AMT, 5.75% due 04/01/15....... 300,000 300,000
----------
Total Variable Rate Demand Notes (cost:
$1,500,000) 1,500,000
----------
TOTAL SECURITIES (COST: $48,167,093) - 98.89% 50,976,475
OTHER ASSETS AND LIABILITIES, NET - 1.11% 571,976
----------
NET ASSETS - 100.00% $ 51,548,451
==========
Atlas U.S. Government and Mortgage Securities Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
U.S. GOVERNMENT AGENCIES - 99.07%
Federal Home Loan Mortgage
Corporation
7.00% due 2023 - 2026............ $ 10,014,570 $ 9,829,824
7.50% due 2023 - 2024............ 20,220,555 20,322,707
8.00% due 2024 - 2026............ 14,672,387 14,985,457
8.50% due 2017 - 2026............ 7,250,327 7,542,819
9.00% due 2019 - 2024............ 7,383,190 7,845,011
9.50% due 2016 - 2021............ 1,568,220 1,698,457
10.00% due 2015 - 2020........... 156,721 171,562
10.50% due 2018 - 2020........... 139,303 154,127
Federal National Mortgage
Association
6.50% due 2023 - 2026............ 2,925,915 2,794,585
7.00% due 2025 - 2026............ 24,264,314 23,741,230
7.50% due 2026................... 31,188,234 31,182,677
8.00% due 2024 - 2026............ 74,338,136 75,762,684
8.50% due 2017 - 2026............ 11,678,746 12,124,168
9.00% due 2021 - 2025............ 8,386,383 8,867,605
9.50% due 2020................... 64,022 69,472
</TABLE>
23
<PAGE> 24
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas U.S. Government and Mortgage Securities Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Government National Mortgage
Association
7.50% due 2022 - 2023............ $ 7,871,766 $ 7,916,567
8.00% due 2023 - 2025............ 2,864,447 2,932,965
8.50% due 2016 - 2020............ 108,702 114,568
----------
Total U.S. Government Agencies (cost:
$226,129,027) 228,056,485
----------
SHORT-TERM INVESTMENTS - 9.00%
6.02% FNMA Floating Collateralized
Mortgage Obligation due 1998..... 274,668 275,525
6.04% FNMA Floating Collateralized
Mortgage Obligation due 1997..... 2,637,885 2,639,520
6.04% FHLMC Floating
Collateralized Mortgage
Obligation due 1997.............. 518,715 518,715
6.12% FHLMC Floating
Collateralized Mortgage
Obligation due 1998.............. 331,190 332,326
6.14% FHLMC Floating
Collateralized Mortgage
Obligation due 1999.............. 506,526 508,739
6.32% FNMA Floating Collateralized
Mortgage Obligation due 1999..... 606,057 610,791
Repurchase Agreement dated
December 11, 1996 with Goldman
Sachs & Co., effective yield of
5.45%, due January 14, 1997 with
respect to $6,145,616 FNMAs,
6.09%, December 1, 2033 with a
value of $6,147,982 (g).......... 6,000,000 6,018,830
Repurchase Agreement dated
December 31, 1996 with Bear,
Stearns & Co., effective yield of
7.35%, due January 2, 1997 with
respect to $10,045,745 FHLMCs,
7.50%, May 1, 2026 with a value
of $10,169,748................... 9,800,000 9,803,947
----------
Total Short-Term Investments (cost: $20,703,046) 20,708,393
----------
TOTAL SECURITIES (COST: $246,832,073) - 108.07% 248,764,878
OTHER ASSETS AND LIABILITIES, NET - (8.07)% (18,575,532)
----------
NET ASSETS - 100.00% $230,189,346
==========
Atlas Strategic Income Fund
- --------------------------------------------------------------
face amount,
shares or value
units (l) (note 1)
------------ ----------
MORTGAGE-BACKED OBLIGATIONS - 18.77%
Government Agency - 16.42%
Federal Home Loan Mortgage Corp.,
Interest-Only Stripped
Mtg.-Backed Security, Trust 177,
7% due 07/01/26 (h).............. $ 840,722 $ 293,202
Federal National Mortgage Assn.,
7% due 07/01/26.................. 894,151 875,989
7.50% due 01/15/27 (j)........... 2,250,000 2,251,305
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units (l) (note 1)
------------ ----------
<S> <C> <C>
Commercial - .90%
Salomon Brothers Mortgage
Securities VII, Series 1996-C1,
Cl. F, 9.18% due 01/20/28........ $ 250,000 $ 187,500
Multi-Family - 1.45%
Criimi Mae, Inc., Trust I, Series
1996-C1, Cl. A2, 7.56% due
08/30/05......................... 100,000 100,088
Mortgage Capital Funding, Inc.,
Commercial Mtg. Pass-Through
Certificates, Series 1996-MC1,
Cl. G, 7.15% due 06/15/06 (g).... 250,000 201,015
----------
Total Mortgage-Backed Obligations (cost:
$3,913,670) 3,909,099
----------
U.S. GOVERNMENT OBLIGATIONS - 22.46%
U.S. Treasury Bonds:
8.125% due 08/15/21 (m).......... 574,000 666,378
6% due 02/15/26 (m).............. 90,000 81,872
U.S. Treasury Notes:
6.375% due 05/15/99.............. 393,000 396,439
7.50% due 10/31/99 (m)........... 3,405,000 3,532,688
----------
Total U.S. Government Obligations (cost:
$4,619,331) 4,677,377
----------
FOREIGN GOVERNMENT OBLIGATIONS - 34.72%
Argentina - 2.37%
Argentina (Republic of),
Bocon Trust Previs II, 5.375% due
04/01/01 (c)..................... 35,000 42,787
Discount Bonds, Series L-Global,
6.375% due 03/31/23 (c).......... 570,000 426,360
Par Bonds, 5.25% due 03/31/23
(e).............................. 40,000 24,950
Australia - 3.32%
Australia (Commonwealth of)
Bonds,
Series 399, 6.25% due 03/15/99
(AUD)............................ 180,000 142,485
Series 803, 9.50% due 08/15/03
(AUD)............................ 285,000 253,378
Queensland Treasury Corp.,
Exchangeable Gtd. Notes, 10.50%
Global Debentures due 05/15/03
(AUD)............................ 245,000 225,550
Treasury Corp. of Victoria Gtd.
Bonds, 12.50% due 10/15/03
(AUD)............................ 20,000 20,222
Western Australia Treasury Corp.
Gtd. Bonds, Series 05, 10% due
07/15/05 (AUD)................... 55,000 50,328
Brazil - 1.77%
Brazil (Federal Republic of),
Eligible Interest Bonds, 6.50%
Debentures due 04/15/06 (c)...... 215,000 187,318
Exit Bonds, 6% Debentures due
09/15/13 (c)..................... 250,000 181,563
Bulgaria - .34%
Bulgaria (Republic of),
Front-Loaded Interest Reduction
Bearer Bonds, Tranche A, 2.25%
due 07/28/12 (e)................. 187,000 71,528
Canada - 6.19%
Canada (Government of) Bonds,
9.75% Debentures due 06/01/01
(CAD)............................ 265,000 226,250
9.75% Debentures due 12/01/01
(CAD)............................ 160,000 137,540
8.75% Debentures due 12/01/05
(CAD)............................ 235,000 199,445
7% due 12/01/06 (CAD)............ 210,000 160,183
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE> 25
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units (l) (note 1)
------------ ----------
<S> <C> <C>
Series A-76, 9% Debentures due
06/01/25 (CAD)................... $ 170,000 $ 152,714
Series J-35, 11.75% Debentures
due 02/01/03 (CAD)............... 350,000 331,620
Province of Ontario, 8.25% due
12/01/05 (CAD)................... 100,000 81,285
Denmark - .87%
Denmark (Kingdom of) Bonds,
8% due 11/15/01 (DKK)............ 585,000 110,078
8% due 03/15/06 (DKK)............ 385,000 71,793
Finland - 1.12%
Finland (Republic of) Bonds,
7.25% due 04/18/06 (FIM)......... 1,000,000 232,824
Germany - 3.32%
Germany (Republic of) Bonds,
Series 94, 6.25% due 01/04/24
(DEM)............................ 885,000 545,032
Series 95, 6.875% due 05/12/05
(DEM)............................ 210,000 146,717
Great Britain - 2.17%
United Kingdom,
GILT, 10% due 09/08/03 (GBP)..... 80,000 155,300
Treasury Notes, 13% due 07/14/00
(GBP)............................ 50,000 100,753
Treasury Notes, 12.50% due
11/21/05 (GBP)................... 90,000 195,120
Ireland - .14%
Ireland (Government of) Bonds,
9.25% Debentures due 07/11/03
(IEP)............................ 15,000 29,412
Italy - .80%
Italy (Republic of) Treasury
Bonds, Buoni del Tesoro
Poliennali,
10.50% due 07/15/98 (ITL)........ 65,000,000 45,175
10.50% due 04/01/00 (ITL)........ 110,000,000 80,410
10.50% due 07/15/00 (ITL)........ 15,000,000 11,040
9.50% due 05/01/01 (ITL)......... 40,000,000 29,040
Mexico - 2.73%
Banco Nacional de Comercio
Exterior SNC Global Bonds, 7.25%
Unsec. Debentures due 02/02/04... 380,000 339,530
Mexican Cetes, Zero Coupon,
26.58% due 01/30/97 (f) (MXP).... 100,000 12,318
Mexican Cetes, Zero Coupon,
26.50% due 03/13/97 (f) (MXP).... 1,685,720 199,582
United Mexican States Bonds,
10.375% due 01/29/03 (DEM)....... 25,000 17,495
New Zealand - 2.33%
New Zealand (Government of),
10% due 07/15/97 (NZD)........... 450,000 322,407
8% due 11/15/06 (NZD)............ 195,000 145,488
Index Linked Bonds, 4.60% due
02/15/16 (Inflation Adjusted
Rate) (NZD)...................... 26,000 18,159
Panama - .10%
Panama (Republic of) Interest
Reduction Bonds, 3.50% Debentures
due 07/17/14 (e)................. 30,000 20,700
Poland - .46%
Poland (Republic of) Discount
Bonds, 6.50% due 10/27/24 (c).... 100,000 95,000
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units (l) (note 1)
------------ ----------
Spain - 2.23%
Spain (Kingdom of),
Debentures, Bonos y Obligacion
del Estado, 10.50% due 10/30/03
(ESP)............................ $ 5,530,000 $ 51,683
Gtd. Bonds, Bonos y Obligacion
del Estado, 12.25% due 03/25/00
(ESP)............................ 17,500,000 159,618
Gtd. Bonds, Bonos y Obligacion
del Estado, 10.30% due 06/15/02
(ESP)............................ 27,800,000 253,730
Sweden - 2.50%
Sweden (Kingdom of) Bonds,
Series 1030, 13% due 06/15/01
(SEK)............................ 2,100,000 396,535
Series 1033, 10.25% due 05/05/03
(SEK)............................ 700,000 124,763
Venezuela - 1.96%
Venezuela (Republic of),
Collateralized Par Bonds, Series
W-A, 6.75% due 03/31/20.......... 250,000 190,938
Front-Loaded Interest Reduction
Bonds, Series A, 6.4375% due
03/31/07 (c)..................... 250,000 217,500
----------
Total Foreign Government Obligations (cost:
$7,072,024) 7,233,646
----------
LOAN PARTICIPATIONS - .68%
Hellenic Republic Bonds, 14.80%
Debentures due 06/30/00 (c)
(GRD)............................ 18,536,000 75,847
Morocco (Kingdom of) Loan
Participation Agreement, Tranche
A, 6.375% due 01/01/09 (c)....... 79,000 64,879
----------
Total Loan Participations (cost: $137,383) 140,726
----------
CORPORATE BONDS AND NOTES - 32.28%
Air Transportation - .15%
American International Group,
Inc., 11.70% Unsec. Unsub. Bonds
due 12/04/01 (ITL)............... 40,000,000 31,400
Apparel & Textiles - .75%
PT Polysindo International
Finance Co. BV, 11.375% Sr. Sec.
Bonds due 06/15/06............... 50,000 53,938
Unifrax Investment Corp., 10.50%
Sr. Notes due 11/01/03........... 50,000 51,000
William Carter Co. (The), 10.375%
Sr. Sub. Notes due 12/01/06
(a).............................. 50,000 51,750
Auto Parts & Equipment - 1.31%
Collins & Aikman Products Co.,
11.50% Sr. Sub. Notes due
04/15/06......................... 150,000 164,063
Hayes Wheels International, Inc.,
11% Unsec. Sr. Sub. Notes due
07/15/06......................... 100,000 108,500
Banks - 1.81%
PT Bank Tabungan Negara, 6.4375%
Notes due 10/28/97 (c) (IDR)..... 1,000,000,000 377,693
Broadcast, Radio & TV - .74%
Paxson Communications Corp.,
11.625% Sr. Sub. Notes due
10/01/02......................... 100,000 104,500
Young Broadcasting, Inc., 9% Sr.
Sub. Notes due 01/15/06.......... 50,000 48,625
</TABLE>
25
<PAGE> 26
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units (l) (note 1)
------------ ----------
<S> <C> <C>
Building Materials - .26%
Triangle Pacific Corp., 10.50%
Sr. Notes due 08/01/03........... $ 50,000 $ 53,625
Building-Heavy Construction - .05%
Empresas ICA Sociedad
Controladora SA de CV, Series
REGS, 11.875% due 05/30/01....... 10,000 10,538
Cable Television - 2.72%
Bell Cablemedia PLC, 0%/11.875%
Sr. Discount Notes due 09/15/05
(d).............................. 150,000 121,125
Cablevision Systems Corp., 10.50%
Sr. Sub. Debentures due
05/15/16......................... 50,000 52,000
Diamond Cable Communications PLC,
0%/11.75% Sr. Discount Notes due
12/15/05 (d)..................... 50,000 35,563
Helicon Group LP/Helicon Capital
Corp., Series B, 9% Sr. Sec.
Notes due 11/01/03............... 100,000 102,000
TeleWest PLC, 0%/11% Sr. Discount
Debentures due 10/01/07 (d)...... 250,000 173,750
Videotron Holdings PLC, 0%/11%
Sr. Discount Notes due 08/15/05
(d).............................. 100,000 81,250
Computers - .51%
Unisys Corp., 11.75% Sr. Notes
due 10/15/04..................... 100,000 106,625
Consumer Products - 1.66%
Coleman Holdings, Inc., Zero
Coupon Sr. Sec. Discount Notes,
Series B, 12.78% due
5/27/98(f)....................... 100,000 83,375
Fletcher Challenge Industries,
Ltd., 10% Cv. Sub. Unsec. Notes
due 04/30/05 (NZD)............... 5,000 4,190
Fletcher Challenge Industries,
Ltd., 14.50% Sub. Notes due
09/30/00 (NZD)................... 5,000 3,782
Iron Mountain, Inc., 10.125% Sr.
Sub. Notes due 10/01/06.......... 100,000 106,000
Samsonite Corp., 11.125% Sr. Sub.
Notes due 07/15/05............... 100,000 110,000
TAG Heuer International SA, 12%
Sr. Sub. Notes due 12/15/05
(a).............................. 33,000 38,115
Diversified Financial - .24%
Wilshire Financial Services
Group, Inc., 13% due 01/01/04.... 50,000 50,250
Diversified Media - 1.11%
Katz Media Corp., 10.50% Sr. Sub.
Notes due 01/15/07 (a)........... 100,000 102,000
Lamar Advertising Co., 9.625%
Unsecured Sr. Sub. Notes due
12/01/06......................... 25,000 25,875
Universal Outdoor Holdings, Inc.,
9.75% Sr. Sub. Notes due
10/15/06......................... 100,000 103,000
Electrical Utilities - 2.39%
CalEnergy Co., Inc., 9.50% Sr.
Notes due 09/15/06 (a)........... 100,000 102,500
Calpine Corp., 10.50% Sr. Notes
due 05/15/06 (a)................. 100,000 105,875
Central Termica Guemes SA, 12%
Unsec. Bonds due 11/26/01
(a)(g)........................... 50,000 50,125
New Zealand Electric Corp., 10%
Debentures due 10/15/01 (NZD).... 310,000 239,590
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units (l) (note 1)
------------ ----------
Energy Service & Producers - 1.53%
Mariner Energy, Inc., 10.50% Sr.
Sub. Notes due 08/01/06 (a)...... $ 100,000 $ 106,000
TransTexas Gas Corp., 11.50% Sr.
Sec. Gtd. Notes due 06/15/02..... 100,000 108,625
Triton Energy, Ltd., 9.75% Sr.
Sub. Discount Notes due
12/15/00......................... 100,000 104,500
Environmental - .25%
Allied Waste Industries, Inc.,
10.25% Sr. Sub. Notes due
12/01/06 (a)..................... 50,000 52,438
Financial - 1.70%
Aames Financial Corp., 9.125% Sr.
Notes due 11/01/03............... 100,000 101,750
Bancomext Trust Division, Series
REGS, 11.25% due 05/30/06........ 40,000 43,500
BankUnited Financial Corp.,
10.25% due 12/31/26 (a).......... 100,000 100,125
Financiera Energy Nacional,
9.375% Unsub. Unsec. Bonds due
06/15/06......................... 100,000 110,000
Food & Beverages - .76%
Doane Products Co., 10.625% Sr.
Notes due 03/01/06............... 50,000 53,000
Foodbrands America, Inc., 10.75%
Sr. Sub. Notes due 05/15/06...... 100,000 106,500
Gas Utilities - .25%
AmeriGas Partners, L.P., 10.125%
Sr. Notes due 04/15/07 (a)....... 50,000 51,875
Health Care/Supplies &
Services - 1.90%
Fresenius Medical Care AG, 9%
Unsec. Trust Preferred due
12/01/06......................... 120,000 122,100
Genesis Health Ventures, Inc.,
9.25% Sr. Sub. Notes due 10/01/06
(a).............................. 100,000 102,750
Multicare Cos., Inc. (The),
12.50% Sr. Sub. Notes due
07/01/02......................... 50,000 55,563
OrNda HealthCorp., 11.375% Sr.
Sub. Notes due 08/15/04.......... 100,000 115,250
Hotel/Gaming - 1.27%
Showboat Marina Casino
Partnership/Showboat Marina
Finance Corp., 13.50% First Mtg.
Notes due 03/15/03 (a)........... 150,000 165,750
Trump Atlantic City
Associates/Trump Atlantic City
Funding, Inc., 11.25% First Mtg.
Notes due 05/01/06............... 100,000 99,500
Industrial - .03%
Mechala Group Jamaica, Ltd.,
12.75% due 12/30/99 (a)(g)....... 7,000 7,044
Insurance - .49%
Veritas Holdings GmbH, 9.625% Sr.
Notes due 12/15/03 (a)........... 100,000 101,500
Metals/Mining - .75%
Kaiser Aluminum & Chemical Corp.,
12.75% Sr. Sub. Notes due
02/01/03......................... 50,000 53,625
Royal Oak Mines, Inc., 11% Sr.
Sub. Notes due 08/15/06 (a)...... 100,000 101,500
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE> 27
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units (l) (note 1)
------------ ----------
<S> <C> <C>
Paper & Forest Products - 1.71%
APP International Finance Co. BV,
11.75% Gtd. Sec. Notes due
10/01/05......................... $ 75,000 $ 80,344
Florida Coast Paper Co. LLC,
12.75% First Mtg. Notes due
06/01/03 (a)..................... 60,000 64,950
Repap Wisconsin, Inc., 9.25%
First Priority Sr. Sec. Notes due
02/01/02......................... 100,000 101,750
SD Warren Co., 12% Sr. Sub. Notes
due 12/15/04..................... 100,000 108,000
Restaurants - .68%
Apple South, Inc., 9.75% Sr.
Notes due 06/01/06............... 50,000 50,500
Carrols Corp., 11.50% Sr. Notes
due 08/15/03..................... 85,000 90,313
Steel - .73%
AK Steel Holding Corp., 9.125%
Sr. Notes due 12/15/06 (a)....... 150,000 151,922
Supermarkets - .26%
Ralphs Grocery Co., 10.45% Sr.
Notes due 06/15/04............... 50,000 53,125
Telecommunications - 5.71%
Allbritton Communications Co.,
11.50% Sr. Sub. Debentures due
08/15/04......................... 75,000 79,500
American Communications Services,
Inc., 0%/13% Sr. Discount Notes
due 11/01/05 (d)................. 150,000 89,250
Brooks Fiber Properties, Inc.,
0%/11.875% Sr. Discount Notes due
11/01/06 (a)(d).................. 150,000 95,625
COLT Telecom Group PLC, Units
(each unit consists of $1,000
principal amount of 0%/12% Unsec.
Sr. Discount Notes due 12/15/06
and one warrant to purchase 7.80
ordinary shares of common stock
of COLT Telecom) (d)(k).......... 50,000 30,000
Comunicacion Celular SA,
0%/13.125% Sr. Deferred Coupon
Bonds due 11/15/03 (d)........... 100,000 66,000
MFS Communications Co., Inc.,
0%/9.375% Sr. Discount Notes due
01/15/04 (d)..................... 200,000 174,000
Occidente y Caribe Celular SA,
Units (each unit consists of
$1,000 principal amount of 0%/14%
Sr. Discount Notes due 03/15/04
and four warrants to purchase
5.709 ordinary shares)
(a)(d)(k)........................ 100,000 60,500
Omnipoint Corp., 11.625% Sr.
Notes due 08/15/06 (a)........... 125,000 130,000
PLD Telekom, Units (each unit
consists of $1,000 principal
amount of 0%/14% Sr. Discount
Notes due 06/01/01 and one
warrant to purchase 34 ordinary
shares) (a)(d)(k)................ 50,000 41,250
PriCellular Wireless Corp.,
0%/14% Sr. Sub. Discount Notes
due 11/15/01 (d)................. 50,000 48,875
PriCellular Wireless Corp.,
10.75% Sr. Notes due 11/01/04
(a).............................. 75,000 77,813
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units (l) (note 1)
------------ ----------
Teleport Communications Group,
Inc., 0%/11.125% Sr. Discount
Notes due 07/01/07 (d)........... $ 200,000 $ 138,000
Teleport Communications Group,
Inc., 9.875% Unsec. Sr. Notes due
07/01/06......................... 50,000 53,500
Western Wireless Corp., 10.50%
Sr. Sub. Notes due 06/01/06...... 100,000 105,125
Telecommunications Services - .41%
Metrocall, Inc., 10.375% Unsec.
Sr. Sub. Notes due 10/01/07...... 100,000 85,000
Telephone Utilities - .15%
Telecomunicacoes Brasileiras SA,
11.09375% due 12/09/99 (c)....... 30,000 31,500
----------
Total Corporate Bonds and Notes (cost: $6,500,193) 6,722,359
----------
PREFERRED STOCKS - .58%
Diversified Media - .58%
PanAmSat Corp., 12.75% Cumulative
(i)(g)........................... 100 120,750
----------
Total Preferred Stocks (cost: $123,125) 120,750
----------
RIGHTS, WARRANTS AND CERTIFICATES - .03%
Telecommunications - .03%
Comunicacion Celular SA Wts.,
Exp. 11/03 (g)................... 100 7,500
----------
Total Rights, Warrants and Certificates (cost:
$7,500) 7,500
----------
STRUCTURED INSTRUMENTS - 2.30%
Canadian Imperial Bank of
Commerce, New York Branch, 16.75%
CD Linked Notes due 04/16/97
(indexed to Russian Federation
Bonds,
Zero Coupon, 04/09/97)........... 100,000 99,700
ING Barings Securities, Inc., Zero
Coupon Chilean Peso Linked Notes
with Chilean Sovereign Risk,
9.05% due 03/12/97 (f)........... 25,000 24,370
ING Barings Securities, Inc., Zero
Coupon Chilean Peso Linked Notes,
11.813% due 06/23/97 (f)......... 65,000 59,515
ING Barings Securities, Inc., Zero
Coupon Czech Crown Linked Notes,
11.911% due 06/26/97 (f)......... 30,000 28,584
ING Barings Securities, Inc., Zero
Coupon Czech Koruna Linked Notes,
11.912% due 02/18/97 (f) CZK..... 2,800,000 101,045
ING Barings Securities, Inc., Zero
Coupon Czech Promissory Note,
12.05% due 06/23/97 (f) CZK...... 551,000 19,063
ING Barings Securities, Inc., Zero
Coupon Note Linked to the Greek
Drachma / Swiss Franc Exchange
Rate, 14.826% due 12/10/97....... 150,000 126,935
Salomon Brothers, Inc., Zero
Coupon Chilean Peso Linked Notes
with Chilean Sovereign Risk,
9.872% due 06/17/97 (f).......... 20,383 19,272
----------
Total Structured Instruments (cost: $485,610) 478,484
----------
</TABLE>
27
<PAGE> 28
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
Contracts/Face value
Date Strike Subject to Put (note 1)
---- ------------ ----------- ---------
<S> <C> <C> <C> <C> <C>
PUT OPTIONS PURCHASED - .01%
German Deutsche
Mark Put
Option.......... 02/97 1.54 (DEM) 240,000 $ 1,537
Italy (Republic
of) Treasury
Bonds, Buoni del
Tesoro
Poliennali,
9.50% due
05/01/01, Put
Option (ITL).... 07/97 102.30 (ITL) 37,000,000 17
Swiss Franc Put
Option.......... 01/97 1.2652 (CHF) 190,000 778
---------
Total Put Options Purchased (cost: $4,375) 2,332
---------
TOTAL INVESTMENTS (COST: $22,863,211) - 111.83% 23,292,273
OTHER ASSETS AND LIABILITIES, NET - (11.83)% (2,464,484)
---------
NET ASSETS - 100.00% $20,827,789
=========
</TABLE>
<TABLE>
<CAPTION>
Atlas Balanced Fund
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
COMMON STOCKS - 34.57%
Air Travel - .91%
AMR Corp. (b)...................... 1,900 $ 167,437
Delta Air Lines, Inc............... 2,028 143,735
Automotive - .47%
Ford Motor Co...................... 5,000 159,375
Banks - 12.44%
Banc One Corp...................... 6,000 258,000
Bank of Boston Corp................ 5,000 321,250
BankAmerica Corp................... 3,500 349,125
Capital One Financial Corp......... 5,000 180,000
Chase Manhattan Corp............... 4,160 371,280
Citicorp........................... 3,000 309,000
Crestar Financial Corp............. 4,000 297,500
First Chicago NBD Corp............. 4,000 215,000
First Union Corp................... 6,875 508,750
Fleet Financial Group, Inc......... 5,000 249,375
Keycorp............................ 4,000 202,000
Mellon Bank Corp................... 4,000 284,000
National City Corp................. 3,000 134,625
PNC Bank Corp...................... 5,000 188,125
Signet Banking Corp................ 5,000 153,750
Summit Bancorp..................... 5,000 218,750
Chemicals & Allied Products - 1.25%
Dexter Corp........................ 5,000 159,375
Dow Chemical Co.................... 1,000 78,375
Du Pont De Nemours................. 2,000 188,750
Drugs and Health Care - 1.15%
American Home Products Corp........ 3,000 175,875
Bristol-Myers Squibb Co............ 2,000 217,500
<CAPTION>
Atlas Balanced Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Electrical Utilities - 1.87%
American Electric Power Co......... 1,500 $ 61,687
Entergy Corp....................... 4,000 111,000
Florida Progress Corp.............. 3,000 96,750
Potomac Electric Power Co.......... 5,000 128,750
Public Service Company of
Colorado........................... 3,000 116,625
Texas Utilities Co................. 3,000 122,250
Electronics - .68%
AMP Inc............................ 6,000 230,250
Financial Services - .01%
Echelon International Corp. (b).... 200 3,125
Food Wholesalers - .50%
SuperValu, Inc..................... 6,000 170,250
Industrial Manufacturing - .75%
Minnesota Mining & Manufacturing
Co................................. 3,000 248,625
Newport News Shipbuilding, Inc.
(b)................................ 400 6,000
Insurance - 3.20%
Allstate Corp...................... 2,781 160,950
American General Corp.............. 6,000 245,250
American States Financial Corp.
(b)................................ 8,000 212,000
GCR Holdings, Ltd. (b)............. 7,000 155,750
IPC Holdings, Ltd.................. 6,000 134,250
Reliance Group Holdings, Inc....... 20,000 182,500
Machine Tools & Equipment - .78%
Snap-On, Inc....................... 7,500 267,188
Metals Mining - .34%
Reynolds Metals Co................. 2,050 115,569
Oil & Gas - 6.60%
Elf Aquitaine...................... 8,000 362,000
Mobil Corp......................... 2,000 244,500
Occidental Petroleum Corp.......... 9,000 210,375
Pacific Enterprises................ 5,000 151,875
Phillips Petroleum Co.............. 4,000 177,000
Royal Dutch Petroleum Co. ADR...... 1,700 290,275
Tenneco, Inc....................... 2,000 90,250
Unocal Corp........................ 9,000 365,625
USX-Marathon Group................. 15,000 358,125
Paper & Forest Products - .70%
Union Camp Corp.................... 2,500 119,375
Weyerhaeuser Co.................... 2,500 118,438
Retail Trade - .55%
J.C. Penney Co..................... 1,000 48,750
Sears Roebuck & Co................. 3,000 138,375
Telecommunications - 1.96%
BCE, Inc........................... 3,000 143,250
GTE Corp........................... 7,000 318,500
SBC Communications, Inc............ 4,000 207,000
Telephone Utilities - .41%
Portugal Telecom S.A. ADR.......... 5,000 141,250
----------
Total Common Stocks (cost: $9,184,938) 11,784,684
----------
CONVERTIBLE PREFERRED STOCKS - 13.43%
Banks - .60%
Bank of Portugal................... 4,000 206,000
Broadcast, Radio & TV - .91%
Merrill Lynch-Cox Communications
STRYPES............................ 14,000 311,500
Electrical Equipment - .31%
Westinghouse Electric Corp., Series
C (a).............................. 6,000 105,750
Electronics - .52%
Elsag Bailey Process Automation
N.V. (a)........................... 5,000 178,750
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE> 29
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Environmental Management - .59%
Browning-Ferris Industries, Inc.
ACES............................... 7,000 $ 199,500
Financial Services - .65%
MCN Corp. PRIDES................... 8,000 221,000
Food & Kindred Products - .78%
Chiquita Brands.................... 5,000 266,250
Gas Utilities - .70%
Enron Corp. ACES................... 10,000 240,000
Insurance - 1.42%
Allstate Corp...................... 4,500 212,625
Salomon, Inc. - FSA Holdings, Inc.
DECS............................... 9,000 272,250
Industrials - 1.09%
Continental Air Finance Trust...... 3,000 198,750
Owens-Corning Capital LLC MIPS
(a)................................ 3,000 171,000
Oil & Gas - 2.20%
Atlantic Richfield Co.............. 10,000 215,000
Santa Fe Energy Resources, Inc.,
Series A........................... 20,000 245,000
Valero Energy Corp................. 5,000 288,750
Paper & Forest Products - 1.20%
James River Corp., Series P DECS... 13,000 409,500
Printing, Publishing & Allied Products - 1.50%
Hollinger International............ 20,000 230,000
News Corp. (a)..................... 3,000 282,000
Telecommunications - .95%
U.S. West, Inc..................... 10,000 323,750
----------
Total Convertible Preferred Stocks (cost:
$4,071,380) 4,577,375
----------
CONVERTIBLE BONDS - 3.67%
Computer Software - 1.43%
Platinum Technology, Inc., 6.75%
due 11/15/01....................... $ 400,000 487,500
Industrials - .56%
Alza Corp., 5% due 05/01/06........ $ 200,000 192,000
Insurance - .61%
Mutual Risk Management, 0% due
10/30/15 (a)....................... $ 500,000 206,250
Metals Mining - 1.07%
Inco, Ltd., 5.75% due 07/01/04..... $ 300,000 364,875
----------
Total Convertible Bonds (cost: $1,088,498) 1,250,625
----------
CORPORATE BONDS - 10.28%
Automotive - .28%
General Motors Acceptance Corp.,
5.50% due 12/15/01................. $ 100,000 94,415
Banks - 3.64%
Barnett Banks, Inc., 8.50% due
03/01/99........................... $ 325,000 339,134
Chase Manhattan Corp., 6.625% due
08/01/03........................... $ 300,000 301,751
First Chicago NBD Bancorp., 7.25%
due 08/15/04....................... $ 590,000 599,851
Diversified Media - .24%
Time Warner, Inc., 7.95% due
02/01/00........................... $ 80,000 82,668
Drugs and Health Care - .70%
R.P. Scherer Corp., 6.75% due
02/01/04........................... $ 250,000 240,027
Financial Services - .74%
PaineWebber Group, Inc., 7% due
03/01/00........................... $ 250,000 251,469
Food Processing - .74%
ConAgra, Inc., 7.40% due
09/15/04........................... $ 250,000 253,779
Atlas Balanced Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
Foreign Government - .57%
Treasury Corp. of Victoria, 9% due
09/04/02........................... $ 228,000 $ 194,332
Gas Utilities - .96%
Enron Corp., 9.875% due 06/15/03... $ 125,000 144,674
Enron Corp., 7.625% due 09/10/04... $ 175,000 181,328
Hotel/Gaming - .36%
Circus Circus Enterprises, 6.75%
due 07/15/03....................... $ 125,000 123,218
Oil and Gas - 1.01%
Coastal Corp., 9.75% due
08/01/03........................... $ 300,000 343,496
Paper & Forest Products - .61%
Fletcher Challenge Canada, Ltd.,
7.75% due 06/20/06................. $ 200,000 207,162
Telecommunications - .43%
Tele-Communications, Inc., 7.25%
due 08/01/05....................... $ 160,000 147,523
----------
Total Corporate Bonds (cost: $3,491,253) 3,504,827
----------
UNITED STATES TREASURY NOTES - 18.56%
5.625% due 10/31/97................. $ 350,000 349,234
6.125% due 08/31/98................. $2,000,000 2,005,624
5.50% due 11/15/98.................. $1,000,000 992,500
Strip, 0% due 08/15/20.............. $15,000,000 2,980,485
----------
Total United States Treasury Notes (cost:
$6,197,823) 6,327,843
----------
SHORT-TERM SECURITIES - 19.27%
Triparty Repurchase Agreement dated
December 31, 1996 with Prudential
Securities, Inc., effective yield
of 5.90%,
due January 2, 1997, collateralized
by FNMAs, 6.00%, August 25, 2008
with a value of $3,590,005 and
FHLMCs, 7.50%, September 15, 2022
with a value of $3,666,333......... $6,571,000 6,571,000
----------
Total Short-Term Securities (cost: $6,571,000) 6,571,000
----------
TOTAL SECURITIES (COST: $30,604,892) - 99.78% 34,016,354
OTHER ASSETS AND LIABILITIES, NET - .22% 74,493
----------
NET ASSETS - 100.00% $ 34,090,847
==========
Atlas Growth and Income Fund
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
COMMON STOCKS - 87.27%
Apparel & Textiles - 2.96%
Gucci Group NV (b)................. 20,000 $ 1,277,500
Jones Apparel Group, Inc. (b) 46,000 1,719,250
Shaw Industries, Inc............... 85,000 998,750
Wolverine World Wide, Inc.......... 16,300 472,700
Auto Parts & Equipment - .94%
Lear Corp. (b)..................... 30,000 1,023,750
Miller Industries, Inc. (b)........ 19,500 390,000
</TABLE>
29
<PAGE> 30
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Automotive - .53%
General Motors Corp................ 14,500 $ 808,375
Banks - 2.84%
Corestates Financial Corp.......... 30,000 1,556,250
Firstar Corp....................... 18,000 945,000
National City Corp................. 40,000 1,795,000
Chemicals - 3.98%
Cabot Corp......................... 55,000 1,381,875
DuPont (E.I.) De Nemours & Co...... 19,100 1,802,562
Morton International, Inc.......... 27,000 1,100,250
Praxair, Inc....................... 37,500 1,729,688
Computer Hardware - 4.69%
3Com Corp. (b)..................... 20,000 1,467,500
Cisco Systems, Inc. (b)............ 38,000 2,417,750
Gateway 2000, Inc. (b)............. 30,000 1,606,875
Ingram Micro, Inc.................. 22,100 508,300
Sun Microsystems, Inc. (b)......... 42,000 1,078,875
Computer Software - 2.21%
BMC Software, Inc. (b)............. 35,000 1,448,125
Concord EFS, Inc. (b).............. 11,000 310,750
Seagate Technology, Inc. (b)....... 40,000 1,580,000
Consumer Goods & Services - .23%
Adidas AG.......................... 8,000 345,205
Cosmetics/Personal Care - 1.32%
Avon Products, Inc................. 35,000 1,999,375
Drugs & Health Care - 9.35%
American Home Products Corp........ 26,000 1,524,250
Amgen, Inc. (b).................... 18,000 978,750
Cardinal Health, Inc............... 56,250 3,276,562
Healthsouth Corp. (b).............. 110,000 4,248,750
Orthodontic Centers of America,
Inc. (b)........................... 80,000 1,280,000
Pharmacia & Upjohn, Inc............ 35,000 1,386,875
Vencor, Inc. (b)................... 45,000 1,423,125
Electrical Equipment - 1.52%
Honeywell, Inc..................... 35,000 2,301,250
Electrical Utilities - .98%
Carolina Power & Light Co.......... 28,000 1,022,000
Southern Co........................ 20,000 452,500
Electronics - 3.03%
Analog Devices, Inc. (b)........... 20,000 677,500
Intel Corp......................... 26,000 3,404,375
Photronics, Inc. (b)............... 7,800 212,550
Ultrak, Inc. (b)................... 9,400 286,700
Energy Services & Producers - 1.40%
Schlumberger, Ltd.................. 21,200 2,117,350
Environmental - .57%
United Waste Systems, Inc. (b)..... 25,000 859,375
Financial Services - 7.09%
Associates First Capital Corp.
(b)................................ 38,000 1,676,750
Federal Home Loan Mortgage Corp.... 21,000 2,312,625
Household International, Inc....... 33,000 3,044,250
MBNA Corp.......................... 55,000 2,282,500
Student Loan Marketing
Association........................ 15,000 1,396,875
Food & Beverages - .96%
JP Food Service (b)................ 28,600 797,225
Richfood Holdings, Inc............. 27,000 654,750
Funeral Services - 1.69%
Service Corporation
International...................... 91,400 2,559,200
Gas Utilities - 1.43%
MAPCO, Inc......................... 30,000 1,020,000
Sonat, Inc......................... 22,000 1,133,000
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
Holding Companies - 1.05%
Canadian Pacific, Ltd.............. 60,000 $ 1,590,000
Hotel/Gaming - .68%
HFS, Inc. (b)...................... 17,100 1,021,725
Industrial Manufacturing - .70%
Tyco International, Ltd............ 20,000 1,057,500
Insurance - 2.75%
Enhance Financial Services Group,
Inc................................ 30,000 1,095,000
ITT Hartford Group, Inc............ 25,000 1,687,500
MGIC Investment Corp............... 18,000 1,368,000
Leisure & Entertainment - 4.10%
Carnival Corp. Cl.A................ 52,000 1,716,000
Gaylord Entertainment.............. 80,000 1,830,000
Regal Cinemas, Inc. (b)............ 60,750 1,868,063
U.S. West Media Group.............. 42,000 777,000
Machine Tools & Equipment - .38%
SPX Corp........................... 15,000 581,250
Manufacturing - .69%
New Holland N.V. (b)............... 50,000 1,043,750
Medical Products - 2.92%
Baxter International, Inc.......... 15,000 615,000
Becton Dickinson & Co.............. 20,000 867,500
Boston Scientific Corp. (b)........ 15,000 900,000
Hillenbrand Industries, Inc........ 30,000 1,087,500
Molecular Devices Corp. (b)........ 20,000 311,250
Spine-Tech, Inc. (b)............... 25,000 625,000
Metals Mining - 1.32%
Newmont Mining Corp................ 11,500 514,625
Nucor Corp......................... 29,100 1,484,100
Oil & Gas - 3.33%
Kerr-McGee Corp.................... 13,500 972,000
Louisiana Land & Exploration
Corp............................... 10,000 536,250
Royal Dutch Petroleum Co. ADR...... 10,000 1,707,500
Union Pacific Resources Group,
Inc................................ 16,940 495,495
USX-Marathon Group................. 55,000 1,313,125
Oil Drilling - .71%
Noble Drilling Corp................ 22,000 1,068,901
Paper & Forest Products - 1.64%
Kimberly-Clark Corp................ 26,000 2,476,500
Photographic Equipment &
Supplies - .80%
Eastman Kodak Co................... 15,000 1,203,750
Printing, Publishing & Allied
Products - .89%
Tribune Co......................... 17,000 1,340,875
Restaurants - .74%
Landry's Seafood Restaurants, Inc.
(b)................................ 52,000 1,111,500
Retail Trade - 5.64%
Kohl's Corp. (b)................... 31,000 1,216,750
May Department Stores Co........... 20,000 935,000
Price/Costco, Inc. (b)............. 75,000 1,884,375
Revco D.S., Inc. (b)............... 37,500 1,387,500
Staples, Inc. (b).................. 15,000 270,938
Wal-Mart Stores, Inc............... 61,000 1,395,375
Walgreen Co........................ 35,500 1,420,000
Specialty Retailing - 4.75%
CompUSA, Inc. (b).................. 50,800 1,047,750
Home Depot, Inc. (b)............... 27,000 1,353,375
Nine West Group, Inc. (b).......... 48,000 2,226,000
OfficeMax, Inc. (b)................ 51,000 541,875
Sherwin Williams Co................ 22,600 1,265,600
U.S. Office Products Co. (b)....... 5,000 170,625
West Marine, Inc. (b).............. 20,000 565,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE> 31
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Supermarkets - 1.22%
Albertson's, Inc................... 25,000 $ 890,625
Vons Companies, Inc. (b)........... 16,000 958,000
Telecommunications - 1.71%
GTE Corp........................... 20,000 910,000
LCI International, Inc............. 44,736 961,824
U.S. West, Inc..................... 22,000 709,500
Telecommunications - Equipment - .33%
Periphonics Corp. (b).............. 17,000 497,250
Telephone Utilities - .97%
Pacific Telesis Group.............. 40,000 1,470,000
Transportation - 2.23%
Trico Marine Services, Inc. (b).... 45,000 2,160,000
Union Pacific Corp................. 20,000 1,202,500
----------
Total Common Stocks (cost: $106,371,792) 131,799,313
----------
CONVERTIBLE PREFERRED STOCKS - 2.40%
Computer Software - .85%
Microsoft Corp..................... 16,000 1,282,000
Financial Services - .18%
The Money Store.................... 10,000 273,750
Gas-Utilities - .69%
Williams Cos., Inc., Series E...... 12,000 1,041,000
Insurance - .13%
Merrill Lynch-MGIC Investment Corp.
STRYPES............................ 3,000 201,750
Metals Mining - .55%
Freeport-McMoRan Copper & Gold,
Inc. .............................. 30,000 832,500
----------
Total Convertible Preferred Stocks (cost:
$2,958,355) 3,631,000
----------
CONVERTIBLE BONDS - 3.68%
Consumer Products - .39%
Central Garden & Pet Co., 6% due
11/15/03 (a)....................... $ 600,000 594,000
Drugs & Health Care - .34%
North American Vaccine, 6.50% due
05/01/03 (a)....................... $ 500,000 518,125
Energy Services & Producers - .38%
Seacor Holdings, Inc., 5.38% due
11/15/06 (a)....................... $ 500,000 576,250
Environmental Control - .98%
United States Filter Corp., 6% due
09/15/05 (a)....................... $ 500,000 877,500
United Waste Systems, Inc., 4.50%
due 06/01/01 (a)................... $ 500,000 595,625
Machinery - .39%
Thermo Electron Corp., 4.25% due
01/01/03 (a)....................... $ 500,000 586,875
Specialty Retailing - 1.20%
Sports Authority Inc., 5.25% due
9/15/01 (a)........................ $ 500,000 466,875
U.S. Office Products Co., 5.50% due
02/01/01........................... $1,050,000 1,349,250
----------
Total Convertible Bonds (cost: $5,370,380) 5,564,500
----------
UNITED STATES TREASURY NOTES - .17%
5% due 01/31/98..................... $ 250,000 247,500
----------
Total United States Treasury Notes (cost:
$249,719) 247,500
----------
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
SHORT-TERM SECURITIES - 6.56%
Triparty Repurchase Agreement dated
December 31, 1996 with Prudential
Securities, Inc., effective yield
of 5.90%, due January 2, 1997,
collateralized by FNMAs,
0.00%-8.00%, August 25, 2008 -
August 25, 2026 with a value of
$7,178,390 and by FHLMCs, 6.5875%-
7%, September 15, 2021 - February
15, 2024 with a value of
$3,015,369......................... $9,913,311 $ 9,913,311
----------
Total Short-Term Securities (cost: $9,913,311) 9,913,311
----------
TOTAL SECURITIES (COST: $124,863,557) - 100.08% 151,155,624
OTHER ASSETS AND LIABILITIES, NET - (.08)% (124,610)
----------
NET ASSETS - 100.00% $151,031,014
==========
<CAPTION>
Atlas Strategic Growth Fund
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
COMMON STOCKS - 78.71%
Apparel & Textiles - 5.63%
Fruit of the Loom, Inc. (b)........ 10,700 $ 405,262
Gap, Inc........................... 9,800 295,225
Liz Claiborne, Inc................. 10,300 397,837
TJX Companies, Inc................. 10,000 473,750
Automotive - .20%
Navistar International Corp. (b)... 6,100 55,662
Banks - 7.31%
Banc One Corp...................... 7,500 322,500
BankAmerica Corp................... 4,500 448,875
Chase Manhattan Corp............... 4,900 437,325
Citicorp........................... 4,200 432,600
NationsBank Corp................... 4,100 400,775
Building Materials - 1.57%
Armstrong World Industries, Inc.... 6,300 437,850
Computer Hardware - 7.61%
Compaq Computer Corp. (b).......... 6,500 482,625
Data General Corp. (b)............. 28,000 406,000
International Business Machines
Corp. ............................. 2,600 392,600
Sun Microsystems, Inc. (b)......... 14,500 372,469
Tandem Computers, Inc. (b)......... 34,400 473,000
Computer Software - .76%
Computer Associates International,
Inc................................ 4,275 212,681
Consumer Goods & Services - 2.22%
Maytag Corp........................ 10,900 215,275
Nike, Inc.......................... 6,800 406,300
Electric Utilities - 2.70%
PacifiCorp......................... 19,700 403,850
Public Service Enterprise Group,
Inc................................ 12,900 351,525
Electronics - 3.35%
Harris Corp........................ 6,700 459,787
Tektronix, Inc..................... 9,300 476,625
Energy Producers & Services - 1.22%
Baker Hughes, Inc.................. 9,900 341,550
</TABLE>
31
<PAGE> 32
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Growth Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Financial Services - 10.05%
Dean Witter Discover and Co........ 5,600 $ 371,000
Federal Home Loan Mortgage Corp.... 4,000 440,500
Federal National Mortgage
Association........................ 8,000 298,000
Green Tree Financial Corp.......... 10,200 393,975
Merrill Lynch & Co., Inc........... 5,900 480,850
Morgan Stanley Group, Inc.......... 7,600 434,150
Salomon, Inc....................... 8,300 391,137
Food & Beverages - 2.66%
Fleming Companies, Inc............. 24,000 414,000
Hershey Foods Corp................. 7,500 328,125
Homebuilders/Real Estate - 2.70%
Centex Corp........................ 13,800 519,225
Kaufman & Broad Home Corp.......... 18,200 234,325
Insurance - 6%
American International Group,
Inc................................ 3,100 335,575
Cigna Corp......................... 3,200 437,200
MGIC Investment Corp............... 6,000 456,000
Travelers Group, Inc............... 9,866 447,689
Leisure & Entertainment - 4.23%
Brunswick Corp..................... 17,800 427,200
Fleetwood Enterprises, Inc......... 14,800 407,000
King World Productions, Inc. (b)... 9,400 346,625
Manufacturing - 3.30%
Caterpillar, Inc................... 6,100 459,025
Trinova Corp....................... 12,700 461,963
Metals Mining - 1.72%
USX-US Steel Group, Inc............ 15,300 480,038
Oil & Gas - 8.18%
PanEnergy Corp..................... 9,700 436,500
Pennzoil Co........................ 8,200 463,300
Phillips Petroleum Co.............. 10,200 451,350
Unocal Corp........................ 11,400 463,125
USX-Marathon Group................. 19,700 470,338
Retail Trade - 4.45%
Dayton Hudson Corp................. 11,600 455,300
Price/Costco, Inc. (b)............. 17,000 427,125
Woolworth Corp. (b)................ 16,500 360,938
Telecommunications - 1.81%
Worldcom, Inc. (b)................. 19,500 507,000
Transportation - 1.04%
CSX Corp........................... 6,900 291,525
----------
Total Common Stocks (cost: $18,504,539) 21,992,051
----------
SHORT-TERM SECURITIES - 21.68%
Triparty Repurchase Agreement dated
December 31, 1996 with Prudential
Securities, Inc., effective yield
of 5.90%,
due January 2, 1997, collateralized
by FHLMCs, 7.50%, September 15,
2022 with a value of $6,681,553.... $6,059,000 6,059,000
----------
Total Short-Term Securities (cost: $6,059,000) 6,059,000
----------
TOTAL SECURITIES (COST: $24,563,539) - 100.39% 28,051,051
OTHER ASSETS AND LIABILITIES, NET - (.39)% (108,918)
----------
NET ASSETS - 100.00% $ 27,942,133
==========
</TABLE>
<TABLE>
<CAPTION>
Atlas Global Growth Fund
- --------------------------------------------------------------
shares, units
or
face amount (l) (note 1)
------------- ----------
<S> <C> <C>
COMMON STOCKS - 98.13%
Aerospace/Defense - 3.38%
Rolls-Royce PLC................. 120,588 $ 532,066
Apparel & Textiles - 1.46%
Giordano International, Ltd..... 100,000 85,332
Wolford AG...................... 1,200 145,146
Automotive - 1.89%
Porsche AG, Preference (b)...... 338 298,629
Banks - 11.26%
Banco Bradesco SA, Preference... 5,940,000 42,768
Banco Frances del Rio de la
Plata SA Sponsored ADR.......... 2,300 63,250
Banque Libanaise GDR............ 14,000 166,600
Barclays PLC.................... 7,089 121,713
Chase Manhattan Corp............ 2,000 178,500
Citicorp........................ 2,000 206,000
HSBC Holdings PLC............... 11,000 235,374
Industrial Credit & Investment
Corp. of India, Ltd. GDR (a).... 9,300 76,255
Industrial Finance Corp......... 19,700 52,606
Northern Trust Corp............. 4,000 145,000
Philippine National Bank (b).... 3,300 39,211
PT Lippo Bank................... 30,000 24,132
PT Pan Indonesia Bank........... 86,500 98,878
Societe Generale de Paris....... 3,000 324,496
Beer, Wine, & Distilled Alcohol - .65%
South African Breweries, Ltd.... 4,050 102,603
Computer Hardware - 1.21%
Cisco Systems, Inc. (b)......... 3,000 190,875
Computer Software - 8.30%
Cap Gemini Sogeti SA (b)........ 5,000 241,878
Computer Associates
International, Inc.............. 3,000 149,250
First Data Corp................. 800 29,200
Ines Corp. (b).................. 1,000 14,597
Microsoft Corp. (b)............. 2,000 165,250
Misys PLC....................... 6,000 114,222
Nintendo Corp., Ltd............. 5,000 356,279
Oracle Corp. (b)................ 4,000 167,000
SAP AG, Preference.............. 500 69,837
Consumer Goods & Services - 2.77%
Adecco SA....................... 400 100,426
Adidas Ord...................... 700 60,482
PT Citra Marga Nusaphala
Persada......................... 30,000 23,497
Reebok International, Ltd....... 6,000 252,000
Diversified Financial - 2.13%
American Express Co............. 1,000 56,500
Compagnie Financiere de
Paribas......................... 3,500 236,797
JCG Holdings, Ltd............... 30,000 29,284
Taiwan Fund, Inc................ 600 13,350
Diversified Holding Companies - 1.15%
Hutchison Whampoa, Ltd.......... 23,000 180,652
</TABLE>
The accompanying notes are an integral part of these financial statements.
32
<PAGE> 33
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- --------------------------------------------------------------
shares, units
or value
face amount (l) (note 1)
------------- ----------
<S> <C> <C>
Drugs & Health Care - 10.19%
Amgen, Inc. (b)................. 4,000 $ 217,500
Astra AB Free, Series A......... 3,200 158,088
Biochem Pharma, Inc. (b)........ 4,000 201,000
Gehe AG......................... 600 38,394
Genzyme Corp. (b)............... 5,800 126,150
Gilead Sciences, Inc. (b)....... 3,100 77,112
Glaxo Wellcome PLC, ADR......... 18,400 584,200
Johnson & Johnson............... 600 29,850
Novartis AG-Reg................. 107 122,567
Sanofi SA....................... 507 50,441
Electric Utilities - .90%
Empresa Nacional de Electricidad
SA.............................. 2,000 142,367
Electrical Equipment - .62%
FORE Systems, Inc. (b).......... 1,000 32,875
Ushio, Inc...................... 6,000 65,296
Electronics - 5.50%
Intel Corp...................... 2,000 261,875
Keyence Corp.................... 1,500 185,265
SGS-Thomson Microelectronics NV
(b)............................. 6,000 420,000
Energy Services &
Producers - 2.08%
Global Marine, Inc. (b)......... 9,000 185,625
Western Atlas, Inc. (b)......... 2,000 141,750
Engineering & Construction - .90%
Koninklijke Boskalis Westminster
NV.............................. 7,000 141,856
Environmental Management - .72%
Rentokil Group PLC.............. 15,000 113,348
Financial Services - 7.36%
MBNA Corp....................... 2,000 83,000
Merita, Ltd., Cl. A (b)......... 200,400 622,780
Merrill Lynch & Co., Inc........ 2,000 163,000
Promise Co., Ltd................ 3,000 147,325
Takefuji Corp................... 2,000 143,879
Food & Beverages - 3.13%
Allied Domecq PLC............... 15,000 117,460
Dairy Farms Intl Holdings....... 65,000 52,325
Hellenic Bottling Co., SA....... 2,500 80,104
Panamerican Beverages, Inc., Cl.
A............................... 1,500 70,313
Remy Cointreau.................. 6,126 173,628
Health Care/Supplies & Services - 2.86%
Quintiles Transnational Corp.
(b)............................. 2,500 165,625
Rhoen-Klinikum AG, Non-vtg.
Preference...................... 100 9,940
United States Surgical Corp..... 7,000 275,625
Homebuilders/Real Estate - 2.07%
Brazil Realty SA (a)............ 3,000 57,000
IRSA Inversiones y
Representaciones SA............. 30,000 96,317
Solidere GDR.................... 15,000 172,500
Industrial Services - 2.04%
IHC Caland NV................... 1,200 68,577
WMX Technologies, Inc........... 700 22,838
WPP Group PLC................... 52,900 229,330
Atlas Global Growth Fund (continued)
- --------------------------------------------------------------
shares, units
or value
face amount (l) (note 1)
------------- ----------
Insurance - 3.57%
American International Group,
Inc............................. 1,000 $ 108,250
Corporacion Mapfre.............. 800 48,750
Marschollek, Lautenschlaeger und
Partner AG...................... 1,100 152,927
Mediolanum SpA (b).............. 10,000 94,519
Reinsurance Australia Corp.,
Ltd. (a)........................ 35,000 136,214
Schweizerische
Rueckversickerungs (b).......... 20 21,355
Leisure & Entertainment - .84%
Resorts World Berhad............ 29,000 132,053
Manufacturing - 2.14%
Bic Corp........................ 1,000 150,005
Bombardier, Inc., Cl. B......... 6,000 110,182
Powerscreen International PLC... 8,000 77,450
Metals Mining - 1.40%
Companhia Vale Do Rio Doce,
Preference...................... 2,000 38,495
Freeport-McMoRan Copper & Gold,
Inc., Cl. B..................... 800 23,900
Minerals Technologies, Inc...... 600 24,600
Newmont Mining Corp............. 3,000 134,250
Oil & Gas - 5.91%
British Petroleum Co. PLC ADR... 8,073 96,901
Elf Aquitaine SA................ 1,000 91,063
Gazprom ADR (a)................. 10,000 177,500
Gulf Canada Resources, Ltd.
(b)............................. 4,000 29,500
Lukoil Oil Co. Sponsored ADR.... 2,900 130,283
Petroleo Brasileiro SA,
Preference...................... 927,000 147,646
Renaissance Energy, Ltd. (b).... 2,300 78,280
Transocean Offshore, Inc........ 1,700 106,463
Unocal Corp..................... 1,800 73,125
Paper & Forest Products - .34%
Bobst Bearers AG................ 40 54,098
Printing, Publishing & Allied Products - .47%
News Corp., Ltd. ADR............ 1,750 36,531
Reuters Holdings PLC, Series B
ADR............................. 500 38,250
Retail Trade - 1.17%
Disco ADR (b)................... 4,000 112,000
PT Matahari Putra Prima......... 30,000 34,928
Sonae Investimentos-SGPS SA..... 1,200 38,001
Specialty Retailing - 3.16%
Circuit City Stores, Inc........ 4,000 120,500
Jusco Co........................ 2,000 67,887
VBH-Vereinigter Baubeschlag
Handel AG....................... 2,000 44,566
Wella AG........................ 500 265,056
Telecommunications-Technology - 2.86%
Ascend Communications, Inc.
(b)............................. 800 49,700
Millicom International Cellular
SA (b).......................... 2,000 64,250
PT Telekomunikasi Indonesia
ADR............................. 600 20,700
QUALCOMM, Inc. (b).............. 3,400 135,575
SBC Communications, Inc......... 3,500 181,125
Telephone Utilities - 2.06%
Portugal Telecom SA............. 2,200 62,715
Telecom Italia SpA.............. 27,300 69,149
Telecomunicacoes Brasileiras SA,
Preference...................... 2,500,000 192,250
</TABLE>
33
<PAGE> 34
Statements of Investments in Securities and Net Assets December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- --------------------------------------------------------------
shares, units
or value
face amount (l) (note 1)
------------- ----------
<S> <C> <C>
Transportation - 1.64%
Brambles Industries, Ltd........ 8,000 $ 155,991
Guanshen Railway Co., Ltd.,
Sponsored ADR (b)............... 5,000 103,125
----------
Total Common Stocks (cost: $14,465,335) 15,467,168
----------
SHORT-TERM SECURITIES - 2.14%
Tripurchase Agreement dated
December 31, 1996 with
Prudential Securities, Inc.,
effective yield of 5.90%, due
January 2, 1997 collateralized
by FHLMCs, 7.50%, September 15,
2022 with a value of $345,885... $ 337,000 337,000
----------
Total Short-Term Securities (cost: $337,000) 337,000
----------
TOTAL SECURITIES (COST: $14,802,335) - 100.27% 15,804,168
OTHER ASSETS AND LIABILITIES, NET - (.27)% (41,967)
----------
NET ASSETS - 100.00% $ 15,762,201
==========
</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.
GDR = Global Depositary Receipt
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 $943,750 or
2.77% of net assets in the Balanced Fund, $4,215,250 or 2.79% of net assets
in the Growth and Income Fund, $1,861,407 or 8.94% of net assets in the
Strategic Income Fund, and $446,969 or 2.84% 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 11 to Financial
Statements.
(h) Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed-income
securities increase in price when interest rates decline. The principal
amount of the underlying pool represents the notional amount on which
current interest is calculated. The price of these securities is typically
more sensitive to changes in prepayment rates than traditional
mortgage-backed securities (for example, GNMA pass-throughs).
(i) Interest or dividend is paid in kind.
(j) When-issued security to be delivered and settled after December 31, 1996.
(k) Units may be comprised of several components, such as debt and equity and/or
warrants to purchase equity at some point in the future. For units which
represent debt securities, face amount disclosed represents total underlying
principal.
(l) Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
<TABLE>
<S> <C>
AUD - Australian Dollar GBP - British Pound Sterling
CAD - Canadian Dollar GRD - Greek Drachma
CHF - Swiss Franc IDR - Indonesian Rupiah
CZK - Czech Koruna IEP - Irish Punt
DEM - German Deutsche Mark ITL - Italian Lira
DKK - Danish Krone MXP - Mexican Peso
ESP - Spanish Peseta NZD - New Zealand Dollar
FIM - Finnish Markka SEK - Swedish Krona
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE> 35
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONTRACTS/FACE EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL/PUT DATE PRICE RECEIVED SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(m) A sufficient amount of securities has been designated to cover outstanding written call and put options of Atlas Strategic
Income Fund, as follows:
Call Option on Australian Dollar 80,000 Feb-97 .8006 AUD $ 641 $ 447
Call Option on Australian Dollar 80,000 Feb-97 .8062 AUD 664 290
Call Option on Australian Dollar 150,000 Mar-97 .80 AUD 1,410 1,050
Call Option on Australian Dollar 240,000 Mar-97 .7950 AUD 2,208 2,076
Call Option on British Pound Sterling 170,000 Jan-97 1.632 GBP 3,828 1,358
Call Option on New Zealand Dollar 150,000 Feb-97 .7107 NZD 383 600
Call Option on New Zealand Dollar 80,000 Mar-97 .7062 NZD 525 488
Call Option on New Zealand Dollar 170,000 Mar-97 .6999 NZD 1,131 1,666
Call Option on New Zealand Dollar 70,000 Mar-97 .6999 NZD 466 686
Call Option on New Zealand Dollar 190,000 Mar-97 .7022 NZD 1,292 1,577
Call Option on New Zealand Dollar 135,000 Mar-97 .7077 NZD 918 1,654
Call Option on U.S. Treasury Notes, 6% due 02/15/26 90,000 Jan-97 $91.00 886 1,828
Put Option on Swiss Franc 190,000 Jan-97 1.2652 CHF 4,897 778
Put Option on Germany (Republic of) Bonds, Series 118,
5.25% due 02/21/01 34,500 Jul-97 99.57 DEM 559 60
---------------------
$19,808 $ 14,558
=====================
</TABLE>
35
<PAGE> 36
Statements of Assets and Liabilities December 31, 1996
- --------------------------------------------------------------------------------
<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>
ASSETS:
Investment in
securities, at
identified cost... $65,546,553 $ 37,538,571 $ 7,478,882 $19,692,328 $12,645,575
========= ========== ========== ========= =========
Investment in
securities, at
value............. $65,546,553 $ 37,538,571 $ 7,478,882 $20,188,838 $13,015,911
Cash................ 1,603 56,108 4,887 94,979 50,066
Receivables for:
Sales of
investments..... 0 0 0 0 0
Sales of Fund's
shares.......... 171,791 161,598 0 0 0
Accrued interest
and dividends... 0 216,386 65,140 389,277 146,887
Other............. 0 0 0 0 0
Unrealized
appreciation on
forward foreign
currency exchange
contracts (Note
8).................. 0 0 0 0 0
Variation margin on
futures contracts
(Note 9)............ 0 0 0 0 0
Unamortized
organization costs
(Note 2).......... 1,795 0 0 1,795 1,795
--------- ---------- ---------- --------- ---------
Total assets........ 65,721,742 37,972,663 7,548,909 20,674,889 13,214,659
--------- ---------- ---------- --------- ---------
LIABILITIES:
Payables for:
Purchases of
investments..... 0 507,650 0 0 0
Redemptions of
Fund's shares... 73,466 84,101 29,520 40,659 17,161
Dividends......... 15,688 4,857 961 21,237 15,892
Repurchases of
investments under
dollar roll
agreements........ 0 0 0 0 0
Accrued
expenses........ 33,136 21,376 4,731 14,970 9,162
Other
liabilities..... 0 0 0 0 0
Options written, at
value (premiums
received $19,808)
(Note 10)........... 0 0 0 0 0
--------- ---------- ---------- --------- ---------
Total liabilities... 122,290 617,984 35,212 76,866 42,215
--------- ---------- ---------- --------- ---------
NET ASSETS............ $65,599,452 $ 37,354,679 $ 7,513,697 $20,598,023 $13,172,444
========= ========== ========== ========= =========
NET ASSETS CONSIST OF:
Net unrealized
appreciation
(depreciation) (Note
3).................. $ 0 $ 0 $ 0 $ 496,510 $ 370,336
Accumulated net
realized gain
(loss)............ (10,178) (85) (377) (449,355) (345,704)
Undistributed net
investment
income............ 0 0 0 0 0
Paid in capital..... 65,609,630 37,354,764 7,514,074 20,550,868 13,147,812
--------- ---------- ---------- --------- ---------
NET ASSETS............ $65,599,452 $ 37,354,679 $ 7,513,697 $20,598,023 $13,172,444
========= ========== ========== ========= =========
NET ASSET VALUE PER
SHARE:
Class A
Net Assets........ $65,479,196 $ 37,354,679 $ 7,513,697 $20,004,921 $12,886,235
Shares
outstanding..... 65,489,351 37,354,764 7,514,074 1,931,402 1,248,066
Net asset value
per share....... $ 1.00 $ 1.00 $ 1.00 $ 10.36 $ 10.32
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 $ 10.68 $ 10.64
Class B
Net Assets........ $ 120,256 NA NA $ 593,102 $ 286,209
Shares
outstanding..... 120,279 NA NA 57,298 27,700
Net asset value
per share and
maximum offering
price............. $ 1.00 NA NA $ 10.35 $ 10.33
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.
36
<PAGE> 37
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
----------------------------------------------------------------------------------------------------------------------------
U.S.
U.S. Government
Government California National and Mortgage Strategic
Intermediate Municipal Municipal Securities Income Balanced Growth and Strategic
Fund Bond Fund Bond Fund Fund Fund Fund Income Fund Growth Fund
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 7,728,619 $169,461,229 $48,167,093 $246,832,073 $22,863,211 $30,604,892 $124,863,557 $24,563,539
=========== ============ =========== ============ =========== =========== ============ ===========
$ 7,603,697 $180,131,119 $50,976,475 $248,764,878 $23,292,273 $34,016,354 $151,155,624 $28,051,051
24,597 7,647 17,005 75,224 286,838 805 0 122
0 0 0 175,488 65,963 9,788 0 0
0 9,850 0 63,333 44,188 13,014 41,180 31,574
41,817 3,255,000 708,638 1,431,715 423,827 202,018 220,168 20,172
0 0 0 0 0 0 3,275 0
0 0 0 0 28,871 0 0 0
0 0 0 0 3,151 0 0 0
1,795 1,795 1,795 1,795 0 1,795 1,795 1,795
----------- ------------ ----------- ------------ ----------- ----------- ------------ -----------
7,671,906 183,405,411 51,703,913 250,512,433 24,145,111 34,243,774 151,422,042 28,104,714
----------- ------------ ----------- ------------ ----------- ----------- ------------ -----------
0 0 0 0 3,180,337 48,810 0 0
0 16,814 16,585 245,944 9,000 0 990 2,856
12,315 212,927 74,403 460,777 111,740 55,441 184,479 120,302
0 0 0 19,300,266 0 0 0 0
5,075 222,253 64,474 297,281 1,687 47,813 205,559 39,423
0 0 0 18,819 0 863 0 0
0 0 0 0 14,558 0 0 0
----------- ------------ ----------- ------------ ----------- ----------- ------------ -----------
17,390 451,994 155,462 20,323,087 3,317,322 152,927 391,028 162,581
----------- ------------ ----------- ------------ ----------- ----------- ------------ -----------
$ 7,654,516 $182,953,417 $51,548,451 $230,189,346 $20,827,789 $34,090,847 $151,031,014 $27,942,133
=========== ============ =========== ============ =========== =========== ============ ===========
$ (124,922) $ 10,669,890 $ 2,809,382 $ 1,932,805 $ 462,501 $ 3,412,371 $ 26,292,047 $ 3,487,512
(254,810) (754,310) (303) (14,338,322) (21,661) (15) (12,724) 15
0 0 0 0 0 0 (19) 9
8,034,248 173,037,837 48,739,372 242,594,863 20,386,949 30,678,491 124,751,710 24,454,597
----------- ------------ ----------- ------------ ----------- ----------- ------------ -----------
$ 7,654,516 $182,953,417 $51,548,451 $230,189,346 $20,827,789 $34,090,847 $151,031,014 $27,942,133
=========== ============ =========== ============ =========== =========== ============ ===========
$ 7,167,022 $177,593,394 $49,596,902 $224,300,905 $17,863,387 $29,289,130 $138,604,361 $22,253,338
748,075 15,931,901 4,423,821 22,265,961 3,461,673 2,404,414 7,776,490 1,588,155
$ 9.58 $ 11.15 $ 11.21 $ 10.07 $ 5.16 $ 12.18 $ 17.82 $ 14.01
9.88
$ $ 11.49 $ 11.56 $ 10.38 $ 5.32 $ 12.56 $ 18.37 $ 14.44
$ 487,494 $ 5,360,023 $ 1,951,549 $ 5,888,441 $ 2,964,402 $ 4,801,717 $ 12,426,653 $ 5,688,795
50,879 480,590 174,021 584,515 575,272 395,257 698,974 408,675
9.58
$ $ 11.15 $ 11.21 $ 10.07 $ 5.15 $ 12.15 $ 17.78 $ 13.92
25,000,000 50,000,000 20,000,000 50,000,000 50,000,000 20,000,000 20,000,000 10,000,000
=========== ============ =========== ============ =========== =========== ============ ===========
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
Global
Growth Fund
----------------------------------------------------------------------------------------------------------------------------
<S> <C>
$14,802,335
===========
$15,804,168
16,689
0
64,406
9,720
4,717
0
0
0
-----------
15,899,700
-----------
18,173
38,258
60,207
0
20,861
0
0
-----------
137,499
-----------
$15,762,201
===========
$ 1,001,989
(17,781)
(5,267)
14,783,260
-----------
$15,762,201
===========
$13,551,101
1,236,193
$ 10.96
$ 11.30
$ 2,211,100
202,681
$ 10.91
15,000,000
===========
</TABLE>
37
<PAGE> 38
Statements of Operations for the period ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds Bond Funds
------------------------------------------------------------------------------------------------------
California National
National Insured Insured
California Municipal Intermediate Intermediate
U.S. Treasury Municipal Money Municipal Municipal
Money Fund(1) Money Fund(1) Fund(1) Fund(1) Fund(1)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest...... $ 3,057,815 $ 1,297,840 $ 264,930 $ 1,042,841 $ 709,131
Dividends..... 0 0 0 0 0
----------- ----------- ---------- ---------- ---------
Total income.... 3,057,815 1,297,840 264,930 1,042,841 709,131
----------- ----------- ---------- ---------- ---------
Expenses:
Management
fees (Note
6).......... 297,347 190,221 36,852 120,119 79,447
12b-1 fees:
(Note 6)
Class A..... 148,366 95,110 18,426 53,335 35,392
Class B..... 924 0 0 3,793 2,160
Transfer
agency fees
and
expenses.... 96,383 35,083 10,931 35,293 27,241
Custodian fees
and
expenses.... 40,262 35,978 14,533 21,766 16,413
Directors'
fees........ 2,990 1,918 371 1,103 729
Registration
fees........ 3,363 925 925 1,392 1,392
Accounting and
legal
fees........ 13,327 13,067 12,690 12,868 12,777
Printing and
postage..... 12,774 5,787 1,607 2,840 2,143
Other......... 5,347 3,006 608 2,633 1,935
----------- ----------- ---------- ---------- ---------
Gross
expenses...... 621,083 381,095 96,943 255,142 179,629
Waiver of
management
fees (Note
6).......... (148,597) (44,635) (28,593) (5,620) (10,696)
Waiver of
12b-1 fees:
(Note 6)
Class A..... (148,366) (95,110) (18,426) (50,962) (34,736)
Class B..... (96) 0 0 (372) (231)
Expense
reimbursement
(Note 6)...... (16,102) 0 0 (15,890) (15,927)
----------- ----------- ---------- ---------- ---------
Net expenses.... 307,922 241,350 49,924 182,298 118,039
----------- ----------- ---------- ---------- ---------
Net investment
income........ 2,749,893 1,056,490 215,006 860,543 591,092
----------- ----------- ---------- ---------- ---------
REALIZED GAIN (LOSS) AND UNREALIZED
APPRECIATION (DEPRECIATION) ON
INVESTMENTS AND FOREIGN CURRENCY:
Realized gain
(loss):
Proceeds from
sales
(including
premiums on
options
exercised).... 362,033,971 114,704,705 22,832,600 13,880,683 9,017,732
Cost of
securities
sold........ (362,044,149) (114,704,790) (22,832,977) (13,734,258) (8,956,622)
Loss on
closing of
future
contracts... 0 0 0 0 0
Gain on
closing and
expiration of
options
written....... 0 0 0 0 0
Loss on
foreign
currency
transactions... 0 0 0 0 0
----------- ----------- ---------- ---------- ---------
Net realized
gain (loss)... (10,178) (85) (377) 146,425 61,110
----------- ----------- ---------- ---------- ---------
Unrealized
appreciation
(depreciation):
Beginning of
period...... 0 0 0 734,722 539,819
End of
period...... 0 0 0 496,510 370,336
----------- ----------- ---------- ---------- ---------
Unrealized
appreciation
(depreciation)... 0 0 0 (238,212) (169,483)
----------- ----------- ---------- ---------- ---------
Net realized
gain (loss) and
unrealized
appreciation
(depreciation)
on investments
and foreign
currency........ (10,178) (85) (377) (91,787) (108,373)
----------- ----------- ---------- ---------- ---------
Net increase in
net assets
resulting from
operations...... $ 2,739,715 $ 1,056,405 $ 214,629 $ 768,756 $ 482,719
=========== =========== ========== ========== =========
</TABLE>
(1) For the year ended December 31, 1996.
(2) For the period May 20, 1996 (inception of operations) to December 31, 1996.
(3) For the period April 15, 1996 (inception of operations) to December 31,
1996.
The accompanying notes are an integral part of these financial statements.
38
<PAGE> 39
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
----------------------------------------------------------------------------------------------------------------------
U.S.
U.S. Government
Government California National and Mortgage Strategic Growth and
Intermediate Municipal Municipal Securities Income Balanced Income
Fund(1) Bond Fund(1) Bond Fund(1) Fund(1) Fund(2) Fund(1) Fund(1)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 504,129 $ 10,575,595 $ 2,931,603 $ 18,797,957 $ 559,877 $ 742,951 $ 840,960
0 0 0 0 0 539,507 1,694,266
--------- ---------- ---------- ---------- --------- --------- ----------
504,129 10,575,595 2,931,603 18,797,957 559,877 1,282,458 2,535,226
--------- ---------- ---------- ---------- --------- --------- ----------
44,678 1,006,052 287,002 1,343,016 52,841 174,640 867,988
19,185 446,620 126,299 597,631 15,905 53,683 297,849
3,370 32,030 12,469 38,493 5,127 26,065 66,613
26,550 125,356 52,898 262,128 13,924 43,361 135,835
7,435 128,460 44,532 201,884 35,050 21,656 92,369
410 9,216 2,630 12,316 344 1,248 6,424
1,392 1,392 1,392 1,392 1,839 3,685 5,653
12,700 14,842 13,240 15,596 10,218 12,904 14,163
1,805 20,540 7,365 44,570 932 7,572 32,312
1,396 5,025 1,010 34,634 422 6,117 31,337
--------- ---------- ---------- ---------- --------- --------- ----------
118,921 1,789,533 548,837 2,551,660 136,602 350,931 1,550,543
(32,085) 0 0 0 (52,841) 0 0
(19,185) 0 0 0 (15,905) 0 0
(340) 0 0 0 0 0 0
(15,906) (16,155) (15,703) (15,015) (61,355) (14,982) (15,221)
--------- ---------- ---------- ---------- --------- --------- ----------
51,405 1,773,378 533,134 2,536,645 6,501 335,949 1,535,322
--------- ---------- ---------- ---------- --------- --------- ----------
452,724 8,802,217 2,398,469 16,261,312 553,376 946,509 999,904
--------- ---------- ---------- ---------- --------- --------- ----------
5,626,849 53,883,958 28,943,820 67,034,453 22,616,993 8,457,301 100,053,005
(5,614,821) (52,715,116) (28,424,905) (68,526,291) (22,552,570) (7,566,524) (90,921,476)
0 0 0 0 (17,445) 0 0
0 0 0 0 3,741 0 0
0 0 0 0 0 0 0
--------- ---------- ---------- ---------- --------- --------- ----------
12,028 1,168,842 518,915 (1,491,838) 50,719 890,777 9,131,529
--------- ---------- ---------- ---------- --------- --------- ----------
52,195 13,639,556 3,939,837 6,259,532 0 1,509,486 13,567,856
(124,922) 10,669,890 2,809,382 1,932,805 462,501 3,412,371 26,292,047
--------- ---------- ---------- ---------- --------- --------- ----------
(177,117) (2,969,666) (1,130,455) (4,326,727) 462,501 1,902,885 12,724,191
--------- ---------- ---------- ---------- --------- --------- ----------
)
(165,089 (1,800,824) (611,540) (5,818,565) 513,220 2,793,662 21,855,720
--------- ---------- ---------- ---------- --------- --------- ----------
287,635
$ $ 7,001,393 $ 1,786,929 $ 10,442,747 $ 1,066,596 $ 3,740,171 $ 22,855,624
========= ========== ========== ========== ========= ========= ==========
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Strategic Global
Growth Fund(3) Growth Fund
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 237,458 $ 45,087
264,417 68,096
---------- ---------
501,875 113,183
---------- ---------
147,089 57,086
42,078 15,707
31,361 6,397
39,461 18,487
20,512 64,813
1,052 350
2,940 2,525
12,856 8,907
7,350 2,189
3,812 577
---------- ---------
308,511 177,038
0 (24,545)
0 (15,707)
0 0
(12,973) (25,019)
---------- ---------
295,538 111,767
---------- ---------
206,337 1,416
---------- ---------
19,465,159 6,039,745
(16,667,682) (5,636,052)
0 0
0 0
0 (30,404)
---------- ---------
2,797,477 373,289
---------- ---------
1,958,299 0
3,487,512 1,001,989
---------- ---------
1,529,213 1,001,989
---------- ---------
4,326,690 1,375,278
---------- ---------
$ 4,533,027 $ 1,376,694
========== =========
</TABLE>
39
<PAGE> 40
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)
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income... $ 2,749,893 $ 1,896,588 $ 1,056,490 $ 1,279,858
Net realized gain (loss)
on investments and
foreign currency........ (10,178) 5,593 (85) 0
Net unrealized
appreciation
(depreciation) on
investments and foreign
currency................ 0 0 0 0
---------- ---------- ---------- ----------
Net increase in net
assets resulting from
operations.............. 2,739,715 1,902,181 1,056,405 1,279,858
---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A............... (2,745,028) (1,894,657) (1,056,490) (1,279,858)
Class B............... (4,865) (1,931) NA NA
Distributions from net
realized gain on
investments:
Class A............... 0 (3,735) 0 0
Class B............... 0 (8) NA NA
Distributions in excess
of net realized gain on
investments:
Class A............... 0 0 0 0
Class B............... 0 0 NA NA
---------- ---------- ---------- ----------
Total distributions:
Class A............... (2,745,028) (1,898,392) (1,056,490) (1,279,858)
Class B............... (4,865) (1,939) NA NA
---------- ---------- ---------- ----------
CAPITAL SHARE
TRANSACTIONS: (NOTE 4)
Proceeds from shares
sold:
Class A............... 75,634,378 62,421,371 20,788,077 21,048,024
Class B............... 168,652 113,548 NA NA
Proceeds from shares
issued in reinvestment
of net investment income
dividends and capital
gain dividends:
Class A............... 2,546,526 1,732,544 1,001,220 1,206,743
Class B............... 4,762 1,823 NA NA
Cost of shares redeemed:
Class A............... (64,076,015) (46,219,562) (23,873,824) (25,794,809)
Class B............... (166,383) (29,910) NA NA
---------- ---------- ---------- ----------
Net increase (decrease)
in net assets resulting
from capital share
transactions:
Class A............... 14,104,889 17,934,353 (2,084,527) (3,540,042)
Class B............... 7,031 85,461 NA NA
---------- ---------- ---------- ----------
Net increase (decrease)
in net assets........... 14,101,742 18,021,664 (2,084,612) (3,540,042)
NET ASSETS:
Beginning of period..... 51,497,710 33,476,046 39,439,291 42,979,333
---------- ---------- ---------- ----------
End of period........... $ 65,599,452 $ 51,497,710 $ 37,354,679 $ 39,439,291
========== ========== ========== ==========
</TABLE>
(1) For the year ended December 31, 1996.
(2) For the year ended December 31, 1995.
The accompanying notes are an integral part of these financial statements.
40
<PAGE> 41
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
----------------------------------------------------------------------------------------------------------------
California Insured Intermediate National Insured Intermediate
National Municipal Money Fund Municipal Fund Municipal Fund
----------------------------------------------------------------------------------------------------------------
1996(1) 1995(2) 1996(1) 1995(2) 1996(1) 1995(2)
<S> <C> <C> <C> <C> <C> <C>
$ 215,006 $ 281,685 $ 860,543 $ 965,599 $ 591,092 $ 661,166
(377) 0 146,425 (219,822) 61,110 (143,594)
0 0 (238,212) 2,009,074 (169,483) 1,336,395
--------- --------- --------- --------- --------- ---------
214,629 281,685 768,756 2,754,851 482,719 1,853,967
--------- --------- --------- --------- --------- ---------
(215,006) (281,685) (843,939) (954,051) (581,184) (653,092)
NA NA (16,604) (11,548) (9,908) (8,074)
0 0 0 0 0 0
NA NA 0 0 0 0
0 0 0 0 0 0
NA NA 0 0 0 0
--------- --------- --------- --------- --------- ---------
(215,006) (281,685) (843,939) (954,051) (581,184) (653,092)
NA NA (16,604) (11,548) (9,908) (8,074)
--------- --------- --------- --------- --------- ---------
5,107,216 5,489,510 1,429,899 1,329,591 960,407 501,016
NA NA 140,750 184,500 58,916 89,519
198,379 264,276 554,405 634,165 358,574 389,037
NA NA 14,726 9,725 9,631 7,792
(5,651,446) (8,003,464) (6,469,246) (2,782,394) (4,107,158) (2,509,192)
NA NA (6,221) 0 (65,724) (14,830)
--------- --------- --------- --------- --------- ---------
(345,851) (2,249,678) (4,484,942) (818,638) (2,788,177) (1,619,139)
NA NA 149,255 194,225 2,823 82,481
--------- --------- --------- --------- --------- ---------
(346,228) (2,249,678) (4,427,474) 1,164,839 (2,893,727) (343,857)
7,859,925 10,109,603 25,025,497 23,860,658 16,066,171 16,410,028
--------- --------- --------- --------- --------- ---------
$ 7,513,697 $ 7,859,925 $20,598,023 $25,025,497 $13,172,444 $16,066,171
========= ========= ========= ========= ========= =========
<CAPTION>
----------------------------------------------------------------------------------------------------------------
U.S. Government
Intermediate Fund
----------------------------------------------------------------------------------------------------------------
1996(1) 1995(2)
<S> <C> <C>
$ 452,724 $ 479,742
12,028 (6,739)
(177,117) 452,908
-------- ---------
287,635 925,911
-------- ---------
(430,630) (461,230)
(22,094) (18,512)
0 0
0 0
0 0
0 0
-------- ---------
(430,630) (461,230)
(22,094) (18,512)
-------- ---------
849,508 741,765
151,204 157,995
260,026 284,999
19,946 16,935
(1,992,652) (2,944,712)
(103,597) (87,780)
-------- ---------
(883,118) (1,917,948)
67,553 87,150
-------- ---------
(980,654) (1,384,629)
8,635,170 10,019,799
-------- ---------
$7,654,516 $ 8,635,170
======== =========
</TABLE>
41
<PAGE> 42
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)
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income.......... $ 8,802,217 $ 9,082,532 $ 2,398,469 $ 2,524,344 $ 16,261,312 $ 17,402,773
Net realized
gain (loss) on
investments and
foreign
currency........ 1,168,842 1,322,704 518,915 517,526 (1,491,838) (3,625,362)
Net unrealized
appreciation
(depreciation)
on investments
and foreign
currency........ (2,969,666) 14,521,170 (1,130,455) 4,191,978 (4,326,727) 22,616,292
---------- ---------- --------- --------- ---------- ----------
Net increase in
net assets
resulting from
operations...... 7,001,393 24,926,406 1,786,929 7,233,848 10,442,747 36,393,703
---------- ---------- --------- --------- ---------- ----------
DISTRIBUTIONS PAID
TO SHAREHOLDERS:
Dividends from
net investment
income:
Class A....... (8,617,419) (8,987,933) (2,337,023) (2,494,396) (15,943,843) (17,261,789)
Class B....... (184,798) (94,599) (61,446) (29,948) (317,469) (140,984)
Distributions
from net
realized gain on
investments:
Class A....... 0 0 (244,585) 0 0 0
Class B....... 0 0 (9,623) 0 0 0
Distributions in
excess of net
realized gain on
investments:
Class A....... 0 0 0 0 0 0
Class B....... 0 0 0 0 0 0
---------- ---------- --------- --------- ---------- ----------
Total
distributions:
Class A....... (8,617,419) (8,987,933) (2,581,608) (2,494,396) (15,943,843) (17,261,789)
Class B....... (184,798) (94,599) (71,069) (29,948) (317,469) (140,984)
---------- ---------- --------- --------- ---------- ----------
CAPITAL SHARE
TRANSACTIONS:
(NOTE 4)
Proceeds from
shares sold:
Class A....... 14,885,665 12,716,142 2,984,690 3,432,223 19,760,191 17,947,765
Class B....... 2,236,769 1,615,527 944,259 663,083 2,808,568 2,210,214
Proceeds from
shares issued in
reinvestment of
net investment
income dividends
and capital gain
dividends:
Class A....... 6,059,281 6,371,160 2,051,732 1,951,594 9,993,486 10,710,383
Class B....... 142,396 73,646 58,955 26,570 222,729 105,302
Cost of shares
redeemed:
Class A....... (25,832,437) (22,241,844) (7,971,452) (6,683,552) (55,336,871) (37,598,231)
Class B....... (182,019) (117,765) (92,044) (40,486) (853,491) (119,553)
---------- ---------- --------- --------- ---------- ----------
Net increase
(decrease) in
net assets
resulting from
capital share
transactions:
Class A....... (4,887,491) (3,154,542) (2,935,030) (1,299,735) (25,583,194) (8,940,083)
Class B....... 2,197,146 1,571,408 911,170 649,167 2,177,806 2,195,963
---------- ---------- --------- --------- ---------- ----------
Net increase
(decrease) in
net assets...... (4,491,169) 14,260,740 (2,889,608) 4,058,936 (29,223,953) 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... $182,953,417 $187,444,586 $51,548,451 $54,438,059 $230,189,346 $259,413,299
============ ============ =========== =========== ============ ============
</TABLE>
(1) For the year ended December 31, 1996.
(2) For the year ended December 31, 1995.
(3) For the period May 20, 1996 (inception of operations) to December 31, 1996.
(4) For the period April 15, 1996 (inception of operations) to December 31,
1996.
The accompanying notes are an integral part of these financial statements.
42
<PAGE> 43
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
------------------------------------------------------------------------------------------------------------------
Strategic Income Strategic
Fund Balanced Fund Growth and Income Fund Growth Fund
------------------------------------------------------------------------------------------------------------------
1996(3) 1996(1) 1995(2) 1996(1) 1995(2) 1996(1)
<S> <C> <C> <C> <C> <C> <C> <C>
$ 553,376 $ 946,509 $ 493,870 $ 999,904 $ 1,024,549 $ 206,337
50,719 890,777 117,425 9,131,529 10,301,995 2,797,477
462,501 1,902,885 2,150,242 12,724,191 11,693,590 1,529,213
--------- --------- --------- ---------- --------- ---------
1,066,596 3,740,171 2,761,537 22,855,624 23,020,134 4,533,027
--------- --------- --------- ---------- --------- ---------
(502,136) (824,900) (458,093) (966,669) (999,924) (181,354)
(51,240) (121,604) (35,786) (33,241) (24,622) (24,971)
(43,471) (762,138) (65,959) (8,366,846) (9,735,132) (2,225,041)
(7,248) (125,529) (7,926) (753,594) (447,924) (570,429)
(18,565) 0 0 0 0 0
(3,096) 0 0 0 0 0
--------- --------- --------- ---------- --------- ---------
(564,172) (1,587,038) (524,052) (9,333,515) (10,735,056) (2,406,395)
(61,584) (247,133) (43,712) (786,835) (472,546) (595,400)
--------- --------- --------- ---------- --------- ---------
17,647,743 16,897,407 3,217,552 47,873,675 22,798,866 10,438,012
2,909,870 2,961,819 968,596 7,307,370 2,339,256 2,664,228
146,503 1,486,308 393,011 9,153,241 10,527,649 2,287,390
38,753 231,526 40,988 762,322 470,219 592,938
(317,560) (4,286,818) (1,756,631) (23,511,110) (21,480,206) (3,945,389)
(38,360) (284,553) (118,564) (642,873) (165,167) (181,623)
--------- --------- --------- ---------- --------- ---------
17,476,686 14,096,897 1,853,932 33,515,806 11,846,309 8,780,013
2,910,263 2,908,792 891,020 7,426,819 2,644,308 3,075,543
--------- --------- --------- ---------- --------- ---------
20,827,789 18,911,689 4,938,725 53,677,899 26,303,149 13,386,788
0 15,179,158 10,240,433 97,353,115 71,049,966 14,555,345
--------- --------- --------- ---------- --------- ---------
$20,827,789 $34,090,847 $15,179,158 $151,031,014 $97,353,115 $27,942,133
========= ========= ========= ========== ========= =========
<CAPTION>
------------------------------------------------------------------------------------------------------------------
Global Growth
Fund
------------------------------------------------------------------------------------------------------------------
1995(2) 1996(4)
<C> <C>
$ 93,830 1,416
418,779 373,289
1,756,747 1,001,989
--------- ---------
2,269,356 1,376,694
--------- ---------
(82,228) (6,683)
(11,605) 0
(128,423) (320,918)
(24,463) (52,371)
(1,673) (15,289)
(319) (2,492)
--------- ---------
(212,324) (342,890)
(36,387) (54,863)
--------- ---------
4,447,212 12,713,597
1,845,831 2,049,552
164,469 282,062
36,136 54,793
(721,926) (306,945)
(35,686) (9,799)
--------- ---------
3,889,755 12,688,714
1,846,281 2,094,546
--------- ---------
7,756,681 15,762,201
6,798,664 0
--------- ---------
$14,555,345 $15,762,201
=========== ===========
</TABLE>
43
<PAGE> 44
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds
------------------------------------------------------------------------------------------------
California
Municipal
U.S. Treasury Money Fund Money
Fund
Class A Class B Class A
------------------------------------------------------------------------------------------------
1996(1) 1995(1) 1994(1) 1993(1) 1992(2) 1996(1) 1995(1) 1994(3) 1996(1)
<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 (loss)..... 0.046 0.050 0.036 0.030 0.023 0.040 0.044 0.018 0.028
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....................... 0.046 0.050 0.036 0.030 0.023 0.040 0.044 0.018 0.028
------ ------ ------ ------ ------ ------ ------ ------ ------
<CAPTION>
1995(1) 1994(1)
<S> <C> <C>
Net asset value, beginning of
period........................... $ 1.00 $ 1.00
------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.032 0.024
Net gain or loss on securities
(both
realized and unrealized)......... 0.000 0.000
------ ------
Total from investment
operations....................... 0.032 0.024
------ ------
LESS DISTRIBUTIONS:
Dividends (from net investment
income).......................... (0.046) (0.050) (0.036) (0.030) (0.023) (0.040) (0.044) (0.018) (0.028)
Distributions (from realized
capital gains)................... 0.000 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 0.000
------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions.............. (0.046) (0.050) (0.036) (0.030) (0.023) (0.040) (0.044) (0.018) (0.028)
------ ------ ------ ------ ------ ------ ------ ------ ------
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).................... 4.74% 5.13% 3.67% 3.03% 2.32% 4.07% 4.45% 3.53% 2.82%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)........................ $65,479 $51,385 $33,448 $14,168 $ 7,632 $ 120 $ 113 $ 28 $37,355
Ratio of expenses to average
net assets (annualized)(8)....... 0.52% 0.64% 0.46% 0.15% 0.00% 1.18% 1.24% 1.13% 0.63%
Ratio of net investment income to
average net assets
(annualized)..................... 4.63% 4.99% 3.75% 2.98% 3.32% 3.95% 4.34% 3.71% 2.78%
Portfolio turnover rate (Note
5)............................. -- -- -- -- -- -- -- -- --
Average commission rate
paid(7)........................ -- -- -- -- -- -- -- -- --
- ----------------------------------
<CAPTION>
LESS DISTRIBUTIONS:
<S> <C> <C>
Dividends (from net investment
income).......................... (0.032) (0.024)
Distributions (from realized
capital gains)................... 0.000 0.000
Distributions (in excess of
realized gains).................. 0.000 0.000
------ ------
Total distributions.............. (0.032) (0.024)
------ ------
Net asset value, end of period..... $ 1.00 $ 1.00
====== ======
Total return(6).................... 3.22% 2.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)........................ $39,439 $42,979
Ratio of expenses to average
net assets (annualized)(8)....... 0.67% 0.46%
Ratio of net investment income to
average net assets
(annualized)..................... 3.18% 2.44%
Portfolio turnover rate (Note
5)............................. -- --
Average commission rate
paid(7)........................ -- --
- ----------------------------------
</TABLE>
(1) For the year ended December 31.
(2) For the period May 1, 1992 (inception of operations) to December 31, 1992.
(3) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(4) For the period January 10, 1990 (effective date of registration) to December
31, 1990.
(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
Class A B
Period Ended 1996 1995 1994 1993 1992 1991 1990 1996
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury Money Fund............................ 1.02% 1.05% 1.08% 1.10% 1.37% NA NA 3.25%
California Municipal Money Fund..................... 1.00% 1.00% 1.00% 0.98% 1.03% 1.13% 1.50% NA
National Municipal Money Fund....................... 1.32% 1.29% 1.25% 1.28% 1.35% 1.51% 1.93% NA
California Insured Intermediate Municipal Fund...... 1.08% 1.11% 1.11% 1.26% NA NA NA 3.25%
<CAPTION>
Period Ended 1995 1994
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Money Fund............................ 3.25% 3.25%
California Municipal Money Fund..................... NA NA
National Municipal Money Fund....................... NA NA
California Insured Intermediate Municipal Fund...... 3.25% 3.25%
</TABLE>
The accompanying notes are an integral part of these financial statements.
44
<PAGE> 45
<TABLE>
<CAPTION>
---------------------------------------------
California Municipal Money Fund (continued)
Class A (continued)
---------------------------------------------
1993(1) 1992(1) 1991(1) 1990(4)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.021 0.027 0.045 0.052
Net gain or loss on securities
(both realized and unrealized)... 0.000 0.000 0.000 0.000
------ ------ ------ ------
Total from investment
operations....................... 0.021 0.027 0.045 0.052
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends (from net investment
income).......................... (0.021) (0.027) (0.045) (0.052)
Distributions (from realized
capital gains)................... 0.000 0.000 0.000 0.000
Distributions (in excess of
realized gains).................. 0.000 0.000 0.000 0.000
------ ------ ------ ------
Total distributions.............. (0.021) (0.027) (0.045) (0.052)
------ ------ ------ ------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ======
Total return(6).................... 2.13% 2.75% 4.61% 5.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)........................ $45,784 $55,890 $59,007 $20,190
Ratio of expenses to average
net assets (annualized)(8)....... 0.48% 0.46% 0.00% 0.00%
Ratio of net investment income to
average net assets (annualized).. 2.10% 2.73% 4.47% 5.50%
Portfolio turnover rate (Note
5)............................. -- -- -- --
Average commission rate
paid(7)........................ -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
------------------------------
National Municipal Money Fund
Class A
------------------------------
1996(1) 1995(1) 1994(1) 1993(1) 1992(1) 1991(1) 1990(4)
<S> <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
------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.029 0.032 0.026 0.022 0.029 0.048 0.055
Net gain or loss on securities
(both realized and unrealized)... 0.000 0.000 0.000 0.000 0.000 0.000 0.000
------ ------ ------ ------ ------ ------ ------
Total from investment
operations....................... 0.029 0.032 0.026 0.022 0.029 0.048 0.055
------ ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends (from net investment
income).......................... (0.029) (0.032) (0.026) (0.022) (0.029) (0.048) (0.055)
Distributions (from realized
capital gains)................... 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
------ ----- ----- ----- ----- ----- -----
Total distributions.............. (0.029) (0.032) (0.026) (0.022) (0.029) (0.048) (0.055)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ====== ======
Total return(6).................... 2.96% 3.26% 2.60% 2.25% 2.94% 4.87% 5.66%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)........................ $ 7,514 $ 7,860 $10,110 $ 9,424 $ 8,139 $ 9,816 $ 4,150
Ratio of expenses to average
net assets (annualized)(8)....... 0.68% 0.75% 0.49% 0.55% 0.54% 0.00% 0.00%
Ratio of net investment income to
average net assets (annualized).. 2.92% 3.21% 2.57% 2.23% 2.92% 4.71% 5.79%
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(1) 1994(1) 1993(5) 1996(1) 1995(1) 1994(3)
<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 (loss)..... 0.41 0.40 0.42 0.26 0.34 0.34 0.17
Net gain or loss on securities
(both realized and unrealized)... (0.01) 0.73 (0.84) 0.47 (0.02) 0.73 (0.27)
------ ------ ------ ------ ----- ----- -----
Total from investment
operations....................... 0.40 1.13 (0.42) 0.73 0.32 1.07 (0.10)
------ ------ ------ ------ ----- ----- -----
LESS DISTRIBUTIONS:
Dividends (from net investment
income).......................... (0.41) (0.40) (0.42) (0.26) (0.34) (0.34) (0.17)
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.............. (0.41) (0.40) (0.42) (0.26) (0.34) (0.34) (0.17)
------ ------ ------ ------ ----- ----- -----
Net asset value, end of period..... $ 10.36 $ 10.37 $ 9.64 $ 10.48 $10.35 $10.37 $ 9.64
====== ====== ====== ====== ===== ===== =====
Total return(6).................... 3.93% 11.84% -4.10% 7.31% 3.14% 11.26% -1.02%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)
Ratio of expenses to average $20,005 $24,582 $23,634 $24,235 $ 593 $ 443 $ 227
net assets (annualized)(8).......
Ratio of net investment income to 0.82% 0.77% 0.40% 0.32% 1.50% 1.30% 1.08%
average net assets (annualized)..
Portfolio turnover rate (Note 3.96% 3.90% 4.16% 4.25% 3.28% 3.37% 3.62%
5).............................
Average commission rate 44.43% 59.28% 31.48% 5.73% 44.43% 59.28% 31.48%
paid(7)........................ -- -- -- -- -- -- --
</TABLE>
45
<PAGE> 46
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
----------------------------------------------------------------------------
National Insured Intermediate Municipal Fund
Class A Class B
----------------------------------------------------------------------------
1996(1) 1995(1) 1994(1) 1993(2) 1996(1) 1995(1) 1994(3)
<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 (loss)..................... 0.42 0.41 0.42 0.26 0.35 0.36 0.18
Net gain or loss on securities (both realized and
unrealized)...................................... (0.05) 0.73 (0.84) 0.46 (0.05) 0.73 (0.26)
----- ----- ----- ----- ---- ---- ----
Total from investment operations................. 0.37 1.14 (0.42) 0.72 0.30 1.09 (0.08)
----- ----- ----- ----- ---- ---- ----
LESS DISTRIBUTIONS:
Dividends (from net investment income)........... (0.42) (0.41) (0.42) (0.26) (0.35) (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.............................. (0.42) (0.41) (0.42) (0.26) (0.35) (0.36) (0.18)
----- ----- ----- ----- ---- ---- ----
Net asset value, end of period.................... $ 10.32 $ 10.37 $ 9.64 $ 10.48 $10.33 $10.38 $ 9.65
===== ===== ===== ===== ==== ==== ====
Total return(6)................................... 3.68% 12.01% -4.05% 7.25% 2.99% 11.43% -0.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000).................. $12,886 $15,782 $16,224 $15,535 $ 286 $ 284 $ 186
Ratio of expenses to average net assets
(annualized)(8).................................. 0.80% 0.77% 0.43% 0.35% 1.48% 1.29% 1.09%
Ratio of net investment income to average net
assets (annualized).............................. 4.11% 4.06% 4.22% 4.28% 3.44% 3.54% 3.72%
Portfolio turnover rate (Note 5)................. 46.95% 84.85% 32.26% 0.00% 46.95% 84.85% 32.26%
Average commission rate paid(7).................. -- -- -- -- -- -- --
- ---------------------------------------------
<CAPTION>
Bond Funds
----------------------------------------------------------------------------
U.S. Government
Intermediate Fund
Class A
----------------------------------------------------------------------------
1996(1) 1995(1) 1994(1)
<S> <C> <C> <C>
Net asset value, beginning of period.............. $ 9.76 $ 9.32 $10.03
---- ---- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..................... 0.54 0.48 0.46
Net gain or loss on securities (both realized and
unrealized)...................................... (0.18) 0.44 (0.71)
---- ---- ----
Total from investment operations................. 0.36 0.92 (0.25)
---- ---- ----
LESS DISTRIBUTIONS:
Dividends (from net investment income)........... (0.54) (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.............................. (0.54) (0.48) (0.46)
---- ---- ----
Net asset value, end of period.................... $ 9.58 $ 9.76 $ 9.32
==== ==== ====
Total return(6)................................... 3.81% 10.12% -2.51%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000).................. $7,168 $8,209 $9,699
Ratio of expenses to average net assets
(annualized)(8).................................. 0.59% 0.69% 0.43%
Ratio of net investment income to average net
assets (annualized).............................. 5.61% 5.03% 4.80%
Portfolio turnover rate (Note 5)................. 46.51% 82.88% 55.09%
Average commission rate paid(7).................. -- -- --
- ---------------------------------------------
</TABLE>
(1) For the year ended December 31.
(2) For the period June 1, 1993 (effective date of registration) to December 31,
1993.
(3) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(4) For the period October 5, 1992 (inception of operations) to December 31,
1992.
(5) For the period January 10, 1990 (effective date of registration) to December
31, 1990.
(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 1990
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
National Insured Intermediate Municipal Fund................. 1.12% 1.19% 1.19% 1.39% NA NA NA
U.S. Government Intermediate Fund............................ 1.24% 1.32% 1.28% 1.26% 2.09% NA NA
California Municipal Bond Fund............................... 0.96% 0.96% 0.97% 0.98% 1.04% 1.14% 1.70%
<CAPTION>
Class B
Period Ended 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C <C> <C> <C>
National Insured Intermediate Municipal Fund................. 3.25% 3.25% 3.25%
U.S. Government Intermediate Fund............................ 3.25% 3.25% 3.25%
California Municipal Bond Fund............................... 1.83% 3.24% 3.25%
</TABLE>
The accompanying notes are an integral part of these financial statements.
46
<PAGE> 47
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------
U.S. Government Intermediate Fund (continued)
Class A (continued) Class B
-----------------------------------------------------
1993(1) 1992(4) 1996(1) 1995(1) 1994(3)
<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 (loss)..................... 0.51 0.13 0.47 0.43 0.19
Net gain or loss on securities (both realized and
unrealized)...................................... 0.41 (0.31) (0.18) 0.44 (0.16)
---- ---- ---- ---- ----
Total from investment operations................. 0.92 (0.18) 0.29 0.87 0.03
---- ---- ---- ---- ----
LESS DISTRIBUTIONS:
Dividends (from net investment income)........... (0.51) (0.13) (0.47) (0.43) (0.19)
Distributions (from realized capital gains)...... (0.07) 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) (0.47) (0.43) (0.19)
---- ---- ---- ---- ----
Net asset value, end of period.................... $10.03 $ 9.69 $ 9.58 $ 9.76 $ 9.32
==== ==== ==== ==== ====
Total return(6)................................... 9.64% -1.83% 3.12% 9.54% 0.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000).................. $8,930 $3,235 $ 487 $ 426 $ 321
Ratio of expenses to average net assets
(annualized)(8).................................. 0.23% 0.00% 1.29% 1.21% 1.08%
Ratio of net investment income to average net
assets (annualized).............................. 4.98% 5.50% 4.92% 4.53% 4.24%
Portfolio turnover rate (Note 5)................. 37.80% 0.00% 46.51% 82.88% 55.09%
Average commission rate paid(7).................. -- -- -- -- --
- --------------------------------------------------
<CAPTION>
------------------------------------------------------------
California Municipal Bond Fund
Class A
------------------------------------------------------------
1996(1) 1995(1) 1994(1) 1993(1) 1992(1)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 11.26 $ 10.31 $ 11.56 $ 10.74 $ 10.64
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..................... 0.53 0.54 0.59 0.59 0.60
Net gain or loss on securities (both realized and
unrealized)...................................... (0.11) 0.95 (1.25) 0.83 0.21
------ ------ ------ ------ ------
Total from investment operations................. 0.42 1.49 (0.66) 1.42 0.81
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends (from net investment income)........... (0.53) (0.54) (0.59) (0.59) (0.60)
Distributions (from realized capital gains)...... 0.00 0.00 0.00 (0.01) (0.11)
Distributions (in excess of realized gains)...... 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------
Total distributions.............................. (0.53) (0.54) (0.59) (0.60) (0.71)
------ ------ ------ ------ ------
Net asset value, end of period.................... $ 11.15 $ 11.26 $ 10.31 $ 11.56 $ 10.74
====== ====== ====== ====== ======
Total return(6)................................... 3.90% 14.76% -5.83% 13.52% 7.86%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000).................. $177,593 $184,283 $171,768 $197,394 $141,108
Ratio of expenses to average net assets
(annualized)(8).................................. 0.96% 0.93% 0.57% 0.53% 0.54%
Ratio of net investment income to average net
assets (annualized).............................. 4.82% 4.98% 5.43% 5.25% 5.66%
Portfolio turnover rate (Note 5)................. 29.28% 25.90% 30.32% 7.44% 46.55%
Average commission rate paid(7).................. -- -- -- -- --
- --------------------------------------------------
<CAPTION>
------------------------------------------------------------------
California Municipal Bond Fund
Class A Class B
------------------------------------------------------------------
1991(1) 1990(5) 1996(1) 1995(1) 1994(3)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 10.12 $ 10.00 $11.26 $10.32 $10.74
------ ----- ---- ---- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..................... 0.66 0.65 0.48 0.48 0.25
Net gain or loss on securities (both realized and
unrealized)...................................... 0.56 0.12 (0.11) 0.94 (0.42)
------ ----- ---- ---- ----
Total from investment operations................. 1.22 0.77 0.37 1.42 (0.17)
------ ----- ---- ---- ----
LESS DISTRIBUTIONS:
Dividends (from net investment income)........... (0.66) (0.65) (0.48) (0.48) (0.25)
Distributions (from realized capital gains)...... (0.04) 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.............................. (0.70) (0.65) (0.48) (0.48) (0.25)
------ ----- ---- ---- ----
Net asset value, end of period.................... $ 10.64 $ 10.12 $11.15 $11.26 $10.32
====== ===== ==== ==== ====
Total return(6)................................... 12.53% 9.38% 3.39% 14.05% -1.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000).................. $106,592 $20,329 $5,360 $3,162 $1,416
Ratio of expenses to average net assets
(annualized)(8).................................. 0.00% 0.00% 1.46% 1.46% 1.28%
Ratio of net investment income to average net
assets (annualized).............................. 6.43% 7.13% 4.33% 4.42% 4.91%
Portfolio turnover rate (Note 5)................. 30.61% 64.18% 29.28% 25.90% 30.32%
Average commission rate paid(7).................. -- -- -- -- --
- --------------------------------------------------
</TABLE>
47
<PAGE> 48
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
-------------------------------------------------------------------------------------------------------
National Municipal Bond Fund
Class A Class B
-------------------------------------------------------------------------------------------------------
1996(1) 1995(1) 1994(1) 1993(1) 1992(1) 1991(1) 1990(2) 1996(1) 1995(1) 1994(3)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period............. $ 11.39 $ 10.41 $ 11.61 $ 10.80 $ 10.61 $ 10.03 $10.00 $11.39 $10.41 $10.76
------ ------ ------ ------ ------ ------ ----- ----- ----- -----
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income (loss).... 0.52 0.53 0.58 0.60 0.60 0.68 0.66 0.46 0.47 0.24
Net gain or loss on
securities (both
realized and
unrealized)........ (0.12) 0.98 (1.20) 0.82 0.32 0.60 0.03 (0.12) 0.98 (0.35)
------ ------ ------ ------ ------ ------ ----- ----- ----- -----
Total from
investment
operations....... 0.40 1.51 (0.62) 1.42 0.92 1.28 0.69 .034 1.45 (0.11)
------ ------ ------ ------ ------ ------ ----- ----- ----- -----
LESS DISTRIBUTIONS:
Dividends (from net
investment
income)............ (0.52) (0.53) (0.58) (0.60) (0.60) (0.68) (0.66) (0.46) (0.47) (0.24)
Distributions (from
realized capital
gains)............. (0.06) 0.00 0.00 (0.01) (0.13) (0.02) 0.00 (0.06) 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 0.00
------ ------ ------ ------ ------ ------ ----- ----- ----- -----
Total
distributions.... (0.58) (0.53) (0.58) (0.61) (0.73) (0.70) (0.66) (0.52) (0.47) (0.24)
------ ------ ------ ------ ------ ------ ----- ----- ----- -----
Net asset value, end
of period.......... $ 11.21 $ 11.39 $ 10.41 $ 11.61 $ 10.80 $ 10.61 $10.03 $11.21 $11.39 $10.41
====== ====== ====== ====== ====== ====== ===== ===== ===== =====
Total return(5)...... 3.58% 14.76% -5.41% 13.39% 8.97% 13.22% 8.52% 3.07% 14.16% -0.99%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000)..... $49,597 $53,387 $50,037 $57,590 $39,463 $26,432 $3,261 $1,952 $1,051 $ 342
Ratio of expenses
to average net
assets
(annualized)(7).... 1.01% 0.91% 0.57% 0.50% 0.54% 0.00% 0.00% 1.51% 1.44% 1.28%
Ratio of net
investment income
to average net
assets
(annualized)....... 4.63% 4.79% 5.35% 5.29% 5.61% 6.59% 7.20% 4.14% 4.22% 4.72%
Portfolio turnover
rate (Note 5).... 44.76% 53.43% 37.52% 3.72% 39.20% 14.47% 15.37% 44.76% 54.30% 37.52%
Average commission
rate paid(6)..... -- -- -- -- -- -- -- -- -- --
</TABLE>
(1) For the year ended December 31.
(2) For the period January 10, 1990 (effective date of
registration) to December 31, 1990.
(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 December 31, 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
Class A B
Period Ended 1996 1995 1994 1993 1992 1991 1990 1996
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
National Municipal Bond Fund........................ 1.01% 1.05% 1.06% 1.06% 1.16% 1.33% 2.64% 2.29%
U.S. Government and Mortgage Securities Fund........ 1.03% 1.04% 1.05% 1.05% 1.12% 1.20% 2.15% 1.82%
Strategic Income Fund............................... 1.85% NA NA NA NA NA NA 3.25%
<CAPTION>
Class B
Period Ended 1995 1994
- ------------------------------------------------------------------------
<S> <C> <C> <C>
National Municipal Bond Fund........................ 3.25% 3.25%
U.S. Government and Mortgage Securities Fund........ 2.27% 3.25%
Strategic Income Fund............................... NA NA
</TABLE>
The accompanying notes are an integral part of these financial statements.
48
<PAGE> 49
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
U.S. Government and Mortgage Securities Fund
Class A
- ------------------------------------------------------------------------------------------------------------
1996(1) 1995(1) 1994(1) 1993(1) 1992(1) 1991(1) 1990(2)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period.............$ 10.30 $ 9.55 $ 10.60 $ 10.57 $ 10.59 $ 10.02 $10.00
------- ------- ------- ------- ------- ------- -----
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income (loss)...... 0.67 0.69 0.70 0.74 0.82 0.91 0.92
Net gain or loss on
securities (both
realized and
unrealized)........ (0.23) 0.75 (1.05) 0.03 (0.02) 0.57 0.02
------- ------- ------- ------- ------- ------- -----
Total from
investment
operations......... 0.44 1.44 (0.35) 0.77 0.80 1.48 0.94
------- ------- ------- ------- ------- ------- -----
LESS DISTRIBUTIONS:
Dividends (from net
investment income). (0.67) (0.69) (0.70) (0.74) (0.82) (0.91) (0.92)
Distributions (from
realized capital
gains)............. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions (in
excess of realized
gains)............. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------- ------- ------- ------- ------- ------- -----
Total
distributions...... (0.67) (0.69) (0.70) (0.74) (0.82) (0.91) (0.92)
------- ------- ------- ------- ------- ------- -----
Net asset value, end
of period..........$ 10.07 $ 10.30 $ 9.55 $ 10.60 $ 10.57 $ 10.59 $10.02
======= ======= ======= ======= ======= ======= =====
Total return(5)...... 4.50% 15.50% -3.30% 7.49% 7.85% 15.53% 10.46%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000).......$224,301 $255,614 $245,715 $311,089 $209,593 $114,130 $7,387
Ratio of expenses
to average net
assets
(annualized)(7).... 1.03% 1.02% 0.80% 0.78% 0.60% 0.00% 0.00%
Ratio of net
investment income
to average net
assets (annualized) 6.67% 6.90% 7.05% 6.93% 7.74% 8.79% 9.84%
Portfolio turnover
rate (Note 5)...... 27.45% 48.39% 16.33% 25.63% 25.50% 4.35% 12.47%
Average commission
rate paid(6)....... -- -- -- -- -- -- --
<CAPTION>
- ------------------------------------------------------------------------------
Strategic Income Fund
Class B Class A Class B
- ------------------------------------------------------------------------------
1996(1) 1995(1) 1994(3) 1996(4) 1996(4)
<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 (loss)...... 0.62 0.64 0.32 0.25 0.23
Net gain or loss on
securities (both
realized and
unrealized)........ (0.23) 0.75 (0.25) 0.18 0.17
----- ----- ----- ------ ------
Total from
investment
operations......... 0.39 1.39 0.07 0.43 0.40
----- ----- ----- ------ ------
LESS DISTRIBUTIONS:
Dividends (from net
investment income). (0.62) (0.64) (0.32) (0.25) (0.23)
Distributions (from
realized capital
gains)............. 0.00 0.00 0.00 (0.01) (0.01)
Distributions (in
excess of realized
gains)............. 0.00 0.00 0.00 (0.01) (0.01)
----- ----- ----- ------ ------
Total
distributions...... (0.62) (0.64) (0.32) (0.27) (0.25)
----- ----- ----- ------ ------
Net asset value, end
of period.......... $10.07 $10.30 $ 9.55 $ 5.16 $ 5.15
===== ===== ===== ====== ======
Total return(5)...... 3.98% 14.93% 0.69% 8.89% 8.25%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000)....... $5,888 $3,799 $1,451 $17,863 $ 2,964
Ratio of expenses
to average net
assets
(annualized)(7).... 1.53% 1.53% 1.43% 0.02% 0.74%
Ratio of net
investment income
to average net
assets (annualized) 6.19% 6.34% 6.82% 8.19% 7.47%
Portfolio turnover
rate (Note 5)...... 27.45% 48.39% 16.33% 187.15% 187.15%
Average commission
rate paid(6)....... -- -- -- -- --
</TABLE>
49
<PAGE> 50
<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(1) 1994(1) 1993(2) 1996(1) 1995(1) 1994(3) 1996(1) 1995(1) 1994(1)
<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)... 0.42 0.42 0.44 0.09 0.36 0.35 0.10 0.14 0.20 0.16
Net gain or loss
on securities
(both realized
and unrealized). 1.32 2.02 (0.62) (0.15) 1.32 2.03 (0.07) 3.06 4.26 (0.34)
------ ------ ----- ----- ------ ----- ----- ------- ------ ------
Total from
investment
operations...... 1.74 2.44 (0.18) (0.06) 1.68 2.38 0.03 3.20 4.46 (0.18)
------ ------ ----- ----- ------ ----- ----- ------- ------ ------
LESS
DISTRIBUTIONS:
Dividends (from
net investment
income)......... (0.42) (0.42) (0.44) (0.09) (0.37) (0.37) (0.22) (0.14) (0.20) (0.16)
Distributions
(from realized
capital gains).. (0.33) (0.06) 0.00 0.00 (0.33) (0.06) 0.00 (1.15) (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... (0.75) (0.48) (0.44) (0.09) (0.70) (0.43) (0.22) (1.29) (2.07) (0.31)
------ ------ ----- ----- ------ ----- ----- ------- ------ ------
Net asset value,
end of period... $ 12.18 $ 11.19 $ 9.23 $ 9.85 $ 12.15 $11.17 $ 9.22 $ 17.82 $ 15.91 $ 13.52
====== ====== ===== ===== ====== ===== ===== ======= ====== ======
Total return(6)... 15.81% 26.76% -1.87% -0.62% 15.25% 26.08% 0.25% 20.16% 33.06% -1.24%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end
of period
(000)........... $29,289 $13,547 $9,654 $5,638 $ 4,802 $1,632 $ 586 $138,604 $93,061 $69,590
Ratio of
expenses to
average net
assets
(annualized)(8). 1.28% 1.48% 0.80% 0.00% 1.77% 1.99% 1.48% 1.16% 1.24% 1.04%
Ratio of net
investment
income to
average net
assets
(annualized).... 3.86% 4.15% 4.85% 5.02% 3.37% 3.66% 4.43% 0.82% 1.26% 1.21%
Portfolio
turnover rate
(Note 5)........ 41.41% 25.84% 29.19% 0.00% 41.41% 25.84% 29.19% 86.66% 125.28% 123.64%
Average
commission
rate paid(7).... $0.0591 -- -- -- $0.0591 -- -- $ 0.0602 -- --
- ------------------
</TABLE>
(1) For the year ended December 31.
(2) For the period October 1, 1993 (inception of operations) to December 31,
1993.
(3) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(4) For the period December 5, 1990 (inception of operations) to December 31,
1990.
(5) For the period April 30, 1996 (effective date of registration) to December
31, 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 1990 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balanced Fund........... 1.28% 1.53% 1.56% 2.04% NA NA NA 2.21% 3.25% 3.25%
Growth and Income Fund.. 1.16% 1.24% 1.28% 1.36% 1.45% 1.66% 3.41% 1.83% 2.39% 3.25%
Strategic Growth Fund... 1.31% 1.65% 1.74% 2.23% NA NA NA 2.12% 3.25% 3.25%
Global Growth Fund...... 2.36% NA NA NA NA NA NA 3.25% NA NA
</TABLE>
The accompanying notes are an integral part of these financial statements.
50
<PAGE> 51
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Growth and Income Fund (continued)
Class A (continued) Class B
- -----------------------------------------------------------------------------------------------------------------------------
1993(1) 1992(1) 1991(1) 1990(4) 1996(1) 1995(1) 1994(3)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period..........$ 13.45 $ 13.52 $ 10.04 $ 10.00 $ 15.89 $ 13.52 $ 13.04
------ ------ ------ ------ ------ ------ ------
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income (loss)... 0.22 0.25 0.31 0.04 0.06 0.10 0.02
Net gain or loss
on securities
(both realized
and unrealized). 1.17 (0.07) 3.48 0.04 3.05 4.26 0.67
------ ------ ------ ------ ------ ------ ------
Total from
investment
operations...... 1.39 0.18 3.79 0.08 3.11 4.36 0.69
------ ------ ------ ------ ------ ------ ------
LESS
DISTRIBUTIONS:
Dividends (from
net investment
income)......... (0.22) (0.25) (0.31) (0.04) (0.07) (0.12) (0.06)
Distributions
(from realized
capital gains).. (0.59) 0.00 0.00 0.00 (1.15) (1.87) (0.12)
Distributions
(in excess of
realized gains). (0.02) 0.00 0.00 0.00 0.00 0.00 (0.03)
------ ------ ------ ------ ------ ------ ------
Total
distributions... (0.83) (0.25) (0.31) (0.04) (1.22) (1.99) (0.21)
------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period...$ 14.01 $ 13.45 $ 13.52 $ 10.04 $ 17.78 $ 15.89 $ 13.52
====== ====== ====== ====== ====== ====== ======
Total return(6)... 10.40% 1.40% 38.15% 0.78% 19.60% 32.32% 5.32%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end
of period
(000)...........$59,392 $38,200 $20,084 $ 1,082 $12,427 $ 4,292 $ 1,460
Ratio of
expenses to
average net
assets
(annualized)(8). 1.06% 0.87% 0.00% 0.00% 1.66% 1.75% 1.66%
Ratio of net
investment
income to
average net
assets
(annualized).... 1.59 2.00% 3.44% 5.20% 0.29% 0.84% 0.71%
Portfolio
turnover rate
(Note 5)........ 178.91% 116.14% 146.31% 14.59% 86.66% 125.28% 123.64%
Average
commission
rate paid(7).... -- -- -- -- $0.0602 -- --
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Strategic Growth Fund Global Growth Fund
Class A Class B Class A Class B
- --------------------------------------------------------------------------------------------------------------------
1996(1) 1995(1) 1994(1) 1993(2) 1996(1) 1995(1) 1994(3) 1996(5) 1996(5)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period..........$ 12.69 $ 10.00 $10.14 $10.00 $ 12.63 $ 9.98 $ 9.92 $ 10.14 $ 10.14
------ ------ ----- ----- ------ ----- ----- ------ ------
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income (loss)... 0.13 0.10 0.11 0.05 0.07 0.03 (0.05) 0.01 (0.03)
Net gain or loss
on securities
(both realized
and unrealized). 2.88 2.82 (0.14) 0.14 2.85 2.82 0.21 1.10 1.08
------ ------ ----- ----- ------ ----- ----- ------ ------
Total from
investment
operations...... 3.01 2.92 (0.03) 0.19 2.92 2.85 0.16 1.11 1.05
------ ------ ----- ----- ------ ----- ----- ------ ------
LESS
DISTRIBUTIONS:
Dividends (from
net investment
income)......... (0.13) (0.09) (0.11) (0.05) (0.07) (0.06) (0.10) (0.01) 0.00
Distributions
(from realized
capital gains).. (1.56) (0.14) 0.00 0.00 (1.56) (0.14) 0.00 (0.27) (0.27)
Distributions
(in excess of
realized gains). 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.01) (0.01)
------ ------ ----- ----- ------ ----- ----- ------ ------
Total
distributions... (1.69) (0.23) (0.11) (0.05) (1.63) (0.20) (0.10) (0.29) (0.28)
------ ------ ----- ----- ------ ----- ----- ------ ------
Net asset value,
end of period...$ 14.01 $ 12.69 $10.00 $10.14 $ 13.92 $12.63 $ 9.98 $ 10.96 $ 10.91
====== ====== ===== ===== ====== ===== ===== ====== ======
Total return(6)... 23.72% 29.14% -0.28% 1.94% 23.13% 28.58% 1.57% 10.89% 10.34%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end
of period (000).$22,253 $12,223 $6,471 $4,168 $ 5,689 $2,332 $ 327 $13,552 $ 2,210
Ratio of
expenses to
average net
assets
(annualized)(8). 1.31% 1.62% 1.17% 0.00% 1.81% 2.14% 1.80% 1.51% 2.24%
Ratio of net
investment
income to
average net
assets
(annualized).... 1.08% 1.03% 1.25% 2.66% 0.59% 0.56% 0.82% 0.13% -0.75%
Portfolio
turnover rate
(Note 5)........ 119.87% 73.32% 54.01% 6.41% 119.87% 73.32% 54.01% 64.89% 64.89%
Average
commission
rate paid(7)....$0.0597 -- -- -- $0.0597 -- -- $0.0052 $0.0052
</TABLE>
51
<PAGE> 52
Notes to Financial Statements December 31, 1996
- --------------------------------------------------------------------------------
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
52
<PAGE> 53
- --------------------------------------------------------------------------------
risk, greater market fluctuations and risk of loss of income and
principal than lower yielding, investment grade fixed income securities.
While it does not hold any such securities as of December 31, 1996, the
Atlas Global Growth Fund may also invest in such lower-rated securities,
but only up to 5% of its gross assets. Neither Fund holds any securities
in default as of December 31, 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 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 year ended December 31, 1996 are net of
foreign withholding taxes of $1,057, $12,610 and $7,584, 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. TBA commitments as of
December 31, 1996 were $19,259,614 for Atlas Government and Mortgage
Securities Fund and $2,264,766 for Atlas Strategic Income Fund.
53
<PAGE> 54
Notes to Financial Statements December 31, 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 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, which may be owned by the Stock funds
and Atlas Strategic Income Fund, 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 Roll 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. Dollar roll transactions involve risk 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.
54
<PAGE> 55
- --------------------------------------------------------------------------------
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
Companies." 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 Income Fund and Atlas Global Growth Fund for
$21,661 and $17,781, respectively, in 1996 resulting from the
non-deductibility under Internal Revenue Service regulations of certain
wash sale losses.
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 December 31, 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 $ 507 $ 370 $ 0 $ 10,844
Unrealized
depreciation... $ 0 $ 0 $ 0 $ (11) $ 0 $ (125) $ (174)
--------------------------------------------------------------------------------------------------------------------------
Net
unrealized
appreciation
(depreciation)... $ 0 $ 0 $ 0 $ 496 $ 370 $ (125) $ 10,670
==========================================================================================================================
Cost
of
securities
for
federal
income
tax
purposes... $65,547 $ 37,539 $7,479 $19,692 $ 12,646 $ 7,729 $169,461
==========================================================================================================================
</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> <C> <C> <C> <C> <C> <C> <C>
Unrealized
appreciation... $ 2,809 $ 3,237 $ 532 $ 3,695 $ 27,822 $ 3,701 $ 1,405
Unrealized
depreciation... $ 0 $ (1,304) $ (69) $ (283) $ (1,530) $ (213) $ (403)
---------------------------------------------------------------------------------------------------------------------------
Net
unrealized
appreciation
(depreciation)... $ 2,809 $ 1,933 $ 463 $ 3,412 $ 26,292 $ 3,488 $ 1,002
==========================================================================================================================
Cost
of
securities
for
federal
income
tax
purposes.. $48,167 $246,832 $22,885 $30,605 $127,877 $24,564 $ 14,820
==========================================================================================================================
</TABLE>
55
<PAGE> 56
Notes to Financial Statements December 31, 1996
- --------------------------------------------------------------------------------
4. SHARE TRANSACTIONS
The following is a summary of share transactions for the years ended December
31, 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 A Class A
1996 1995 1996 1995 1996 1995 1996 1995
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold............. 75,634 62,421 168 113 20,788 21,048 5,107 5,490
Issued in
reinvestment of
dividends........ 2,547 1,732 5 2 1,001 1,207 198 264
Redeemed......... (64,076) (46,219) (166) (30) (23,874) (25,795) (5,651) (8,004)
-----------------------------------------------------------------------------------------------------------
Net increase
(decrease)..... 14,105 17,934 7 85 (2,085) (3,540) (346) (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......................... 140 132 14 18 93 50 6 9 89 78 16 16
Issued in reinvestment of
dividends.................... 54 62 1 1 35 38 1 0 27 29 2 2
Redeemed..................... (632) (275) (1) 0 (402) (249) (7) (1) (209) (307) (11) (9)
-------------------------------------------------------------------------------------------------
Net increase (decrease)...... (438) (81) 14 19 (274) (161) 0 8 (93) (200) 7 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......................... 1,356 1,171 204 148 267 312 85 61 1,962 1,783 279 219
Issued in reinvestment of
reinvestment of dividends.... 550 584 13 7 184 177 5 2 995 1,065 22 10
Redeemed..................... (2,346) (2,038) (17) (11) (715) (609) (8) (4) (5,514) (3,767) (85) (12)
--------------------------------------------------------------------------------------------------
Net increase (decrease)...... (440) (283) 200 144 (264) (120) 82 59 (2,557) (919) 216 217
==================================================================================================
</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(1) 1995 1996(1) 1995 1996 1995 1996 1995 1996 1995 1996 1995
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold......................... 3,495 N/A 575 N/A 1,435 298 254 90 2,756 1,424 423 143
Issued in reinvestment of
dividends.................... 29 N/A 7 N/A 123 37 19 4 514 662 43 29
Redeemed..................... (62) N/A (7) N/A (364) (171) (24) (12) (1,343) (1,382) (37) (10)
---------------------------------------------------------------------------------------------------
Net increase................. 3,462 N/A 575 N/A 1,194 164 249 82 1,927 704 429 162
===================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Strategic Growth Fund Global Growth Fund
Class A Class Class A Class B
1996 1995 1996 1995 1996(2) 1995 1996(2) 1995
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold......................... 749 368 194 152 1,239 N/A 199 N/A
Issued in reinvestment of
dividends.................... 163 13 43 3 26 N/A 5 N/A
Redeemed..................... (287) (65) (13) (3) (29) N/A (1) N/A
----------------------------------------------------------------
Net increase................. 625 316 224 152 1,236 N/A 203 N/A
================================================================
</TABLE>
(1) For the period May 20, 1996 (inception of operations) to December 31, 1996.
(2) For the period April 15, 1996 (inception of operations) to December 31,
1996.
56
<PAGE> 57
- --------------------------------------------------------------------------------
5. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding short-term securities)
for the year ended December 31, 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 $ 9,423 $6,547 $3,355
Sales........ $0 $0 $0 $13,881 $9,018 $5,627
---------------------------------------------------------------------------------------------------------
<CAPTION>
California
Municipal
Bond Fund
------------------------------------------------------------
<S> <C>
Purchases.... $52,136
Sales........ $53,884
------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
National U.S. Government
Municipal and Mortgage Strategic Balanced Growth and Strategic
Bond Fund Securities Fund Income Fund Fund Income Fund Growth Fund
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases.... $22,855 $70,224 $45,390 $18,942 $140,065 $26,100
Sales........ $28,944 $67,034 $22,617 $ 8,457 $100,053 $19,465
-------------------------------------------------------------------------------------------------------------
<CAPTION>
Global
Growth Fund
------------------------------------------------------------------------------------
<S> <C>
Purchases.... $20,101
Sales........ $ 6,040
------------------------------------------------------------------------------------------------
</TABLE>
At December 31, 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 2004
<S> <C> <C> <C> <C>
U. S. Treasury Money Fund...................................... $ -- $ -- $ -- $ 10
California Insured Intermediate Municipal Fund................. -- $ 130 $ 319 --
National Insured Intermediate Municipal Fund................... -- $ 143 $ 203 --
U.S. Government Intermediate Fund.............................. -- $ 199 $ 56 --
California Municipal Bond Fund................................. -- $ -- $ 723 --
U.S. Government and Mortgage Securities Fund................... $288 $5,139 $7,507 $1,456
</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
57
<PAGE> 58
Notes to Financial Statements December 31, 1996
- --------------------------------------------------------------------------------
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.
Due to voluntary expense waivers in effect during the year ended December 31,
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 $398,397 and $1,039, respectively.
Management fees due the Adviser were reduced by $347,612. The Adviser also
absorbed $240,248 of other Fund expenses during the period. During the year
ended December 31, 1996, the Distributor received $894,495 for sales charges
paid by purchasers of Class A shares and $28,622 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 December 31, 1996, Golden West Financial owned 25,162 Class A shares in the
California Municipal Money Fund; 25,439 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; 2,999
Class A shares and 233 Class B shares in the California Municipal Bond Fund;
3,009 Class A shares and 233 Class B shares in the National Municipal Bond Fund;
3,416 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 has a concentration in United States Treasury
obligations.
Industry and sector concentrations greater than 10% of a Fund's net assets at
December 31, 1996 are as follows:
The California Municipal Money Fund has 13.60% in housing, 12.89% in
industrial development, 10.74% in tax revenue anticipation notes and 10.71% in
public power.
The National Municipal Money Fund has 19.10% in industrial development and
14.42% in general obligation.
The California Insured Intermediate Municipal Fund has 19.15% in education,
17.28% in transportation, 14.57% in water/sewer and 10.90% in housing.
The National Insured Intermediate Municipal Fund has 40.46% in general
obligation bonds, 15.01% in education, 13.64% in prerefunded bonds and 10.11% in
health.
The California Municipal Bond Fund has 26.67% in water/sewer bonds and 12.36%
in public power.
58
<PAGE> 59
- --------------------------------------------------------------------------------
The National Municipal Bond Fund has 24.64% in general obligation bonds,
16.92% in public power and 11.79% in education.
8. FORWARD CONTRACTS
As of December 31, 1996, Atlas Strategic Income Fund had the following open
forward contracts to purchase and sell foreign currencies:
<TABLE>
<CAPTION>
Contract Valuation Unrealized
Settlement Amount as of Gain
Date (000's) 12/31/96 (Loss)
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Contracts to Buy:
- ----------------
Canadian Dollar........................................ 02/20/97 170 CAD $ 124,565 $(3,187)
Finnish Markka......................................... 01/07/97 1,126 FIM 244,773 1,440
Italian Lira........................................... 01/21/97-02/14/97 475,031 ITL 312,551 3,488
Japanese Yen........................................... 01/06/97 3,980 JPY 34,409 (1,535)
Swiss Franc............................................ 02/14/97 110 CHF 82,608 (4,978)
---------- -------
$ 798,906 (4,772)
========== -------
Contracts to Sell:
- ---------------
Canadian Dollar........................................ 02/12/97-03/05/97 980 CAD $ 718,345 11,214
Italian Lira........................................... 01/21/97-02/14/97 354,360 ITL 233,213 (2,264)
Japanese Yen........................................... 01/06/97 3,980 JPY 34,409 1,044
Swedish Krona.......................................... 02/03/97 430 SEK 63,179 2,600
Swiss Franc............................................ 01/06/97-03/17/97 620 CHF 465,067 21,049
---------- -------
$1,514,213 33,643
========== -------
Net unrealized gain.................................... $28,871
=======
</TABLE>
9. FUTURES CONTRACTS
The Bond and Stock Funds may purchase and sell futures contracts for hedging
their investments against changes in value, to manage cash flow, to attempt to
enhance income, or as a temporary substitute for purchases or sales of actual
securities. These Funds may also buy or write put or call options on these
futures contracts.
The purpose of the acquisition or sale of a futures contract is to protect the
involved Fund from adverse fluctuations in interest rates or in market or
currency indices and the resulting negative valuation effect on the Fund
investments without actually buying or selling securities.
Upon engaging in a futures contract, the Fund is required to deposit with the
broker an amount of cash or cash equivalents equal to a certain percentage of
the contract amount (initial margin). Subsequent payments (variation margins) to
and from the Fund or the broker, must be made daily as the price of security or
currency rates underlying the futures contract fluctuates, making the long or
short position in the futures contract more or less valuable. The Fund
recognizes a realized gain or loss when the contract is closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statements of
Investments. The Statements of Assets and Liabilities reflects a receivable or
payable for the daily mark to market variation margin.
Futures contracts (and related options) involve risks to which the Bond and
Stock Funds would otherwise not be subject. Inherent risks include the
possibility of imperfect correlation between the price of the futures contract
or option and the price of the securities or indices being hedged and the
possible absence of a liquid secondary market for any particular instrument at
any time.
59
<PAGE> 60
Notes to Financial Statements December 31, 1996
- --------------------------------------------------------------------------------
As of December 31, 1996 the Atlas Strategic Income Fund had outstanding
futures contracts to sell debt securities as follows:
<TABLE>
<CAPTION>
Number of Unrealized
Expiration Futures Appreciation/
Date Contracts Valuation (Depreciation)
----------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Sell:
- ---------------
U. S. Treasury Notes............................................... 03/97 1 $112,625 $1,594
French Government Bonds............................................ 03/97 2 246,826 1,767
German Government Bonds............................................ 03/97 1 163,503 (1,009)
-------- -------
$522,954 $2,352
======== =======
</TABLE>
10. OPTIONS TRANSACTIONS:
The Bond and Stock Funds may purchase and sell covered exchange listed put and
call options on securities, indices and currencies. These options my be on debt
securities, financial indices and foreign currencies (Bond Funds) and on stocks,
stock and financial indices, foreign government securities or foreign currencies
(Stock Funds).
A Fund may sell covered put options and call options for additional premium
income, buy put options in an effort to protect the value of a security in its
portfolio against decline in value and buy call options in a effort to protect
against a price increase of securities or currencies it intends to purchase. The
Bond and Stock Funds also make offsetting transactions to close open positions.
A Fund may write a put option as an alternative to purchasing a security. A
put option gives the holder the right to sell the underlying security to the
Fund at any time during the option period at a predetermined exercise price.
Writing a call option obligates the Fund to sell or deliver the option's
underlying security, in return for the strike price, upon exercise of the
option.
Premiums received are record as a liability which is marked to market daily to
reflect the current value of the options. A Fund will realize a gain or loss
upon the expiration or closing of the option transaction. When an option is
exercised, the proceeds on sales for a written call option, the purchase cost
for a written put option, or the cost of the security for a purchased put or
call option is adjusted by the amount of the premium received or paid. If an
option expires or is canceled in a closing transaction, the Fund will realize a
gain or loss depending on whether the cost of the closing transaction, if any,
is lesser than or greater than the premium originally received.
Securities designated to cover outstanding call options are noted in the
Statements of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a
footnote to the Statements of Investments. Options written are reported as a
liability in the Statements of Assets and Liabilities. Gains and losses are
reported in the Statements of Operations.
The risk in writing a call option is that the Fund foregoes the opportunity
for profit if the value of the underlying security increases and the option is
exercised. The risk in writing a put option is that the Fund is exposed to a
potential loss if the value of the underlying security declines and the option
is exercised. Owning an option exposes the Fund to the risk of paying a premium
regardless as to the option being exercised or not. Additional risk exists if an
illiquid secondary market does not allow for entering into a closing
transaction.
60
<PAGE> 61
- --------------------------------------------------------------------------------
Written option transactions in the Atlas Strategic Income Fund for the year
ended December 31, 1996 were as follows:
<TABLE>
<CAPTION>
Call Options Put Options
---------------------- ----------------------
Number of Amount of Number of Amount of
Options Premiums Options Premiums
-------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at December 31, 1995............................... 0 $ 0 0 $ 0
Options written........................................................ 2,621,800 20,092 314,500 5,743
Options closed or expired.............................................. (675,900) (3,648) (50,000) (156)
Options exercised...................................................... (430,000) (2,092) (40,000) (131)
--------- ------- ------- ------
Options outstanding at December 31, 1996............................... 1,515,900 $14,352 224,500 $ 5,456
========= ======= ======= ======
</TABLE>
11. ILLIQUID AND RESTRICTED SECURITIES
The Funds may invest in securities that are illiquid or restricted. These
securities are not 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
December 31, 1996, the value of these securities amounted to $6,018,830 in the
Atlas U.S. Government and Mortgage Securities Fund and $386,434 in the Atlas
Strategic Income Fund. Information concerning these investments as of December
31, 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 Goldman Sachs, 5.45% due 01/14/97...... 12/11/96 $100.00 $100.31
and Mortgage
Securities Fund
Strategic Income Central Termica Guemes SA, 12% Bonds due 11/26/01................ 11/19/96 $100.09 $100.25
Fund Comunicacion Celular SA Wts., Exp. 11/03......................... 12/17/96 $75.00 $75.00
Mechala Group Jamaica, Ltd., 12.75% Bonds due 12/30/99........... 12/18/96 $100.00 $100.63
Mortgage Capital Funding, Inc. Commercial Mtg. Pass-Through
Certificates, Series 1996-MC1, Class G, 7.15% due 06/15/06....... 06/27/96 $76.37 $80.41
PanAmSat Corp., 12.75% Preferred Stock........................... 10/15/96 $1,231.25 $1,207.50
</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.
61
<PAGE> 62
Independent Auditors' Report
- --------------------------------------------------------------------------------
THE BOARD OF DIRECTORS AND SHAREHOLDERS
ATLAS ASSETS, INC.:
We have audited the accompanying statements of assets and liabilities of the
Funds comprising Atlas Assets, Inc. (Atlas U.S. Treasury Money Fund, Atlas
California Municipal Money Fund, Atlas National Municipal Money Fund, Atlas
California Insured Intermediate Municipal Fund, Atlas National Insured
Intermediate Municipal Fund, Atlas U.S. Government Intermediate Fund, Atlas
California Municipal Bond Fund, Atlas National Municipal Bond Fund, Atlas U.S.
Government and Mortgage Securities Fund, Atlas Strategic Income Fund, Atlas
Balanced Fund, Atlas Growth and Income Fund, Atlas Strategic Growth Fund, and
Atlas Global Growth Fund)(the "Funds"), including the statements of investments
in securities and net assets as of December 31, 1996, the related statements of
operations for the year ended December 31, 1996, the statements of changes in
net assets for the periods ended December 31, 1996 and 1995 [Atlas Strategic
Income Fund for the period May 20, 1996 (inception of operations) to December
31, 1996; Atlas Global Growth Fund for the period April 15, 1996 (inception of
operations) to December 31, 1996], and the financial highlights for each of the
periods ended December 31, 1996, 1995, 1994, 1993, 1992, 1991, and 1990. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1996 by corresponding with the custodian and brokers; where replies were not
received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each of the
respective Funds comprising Atlas Assets, Inc., at December 31, 1996, the
results of their operations, the changes in their net assets, and their
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deliotte & Touche signature
Oakland, California
February 7, 1997
62
<PAGE> 63
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<PAGE> 64
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