<PAGE> 1
SEMI-ANNUAL
REPORT
JUNE 30, 1997
[ATLAS FUNDS LOGO]
The investments you want from the people you trust.
NOT FDIC INSURED
<PAGE> 2
Table of Contents
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<TABLE>
<S> <C>
Letter from the President........................................................................... 2
Atlas Stock and Bond Fund Total Returns............................................................. 5
Statements of Investments in Securities and Net Assets.............................................. 6
Statements of Assets and Liabilities................................................................ 32
Statements of Operations............................................................................ 34
Statements of Changes in Net Assets................................................................. 36
Financial Highlights................................................................................ 40
Notes to Financial Statements....................................................................... 50
</TABLE>
<PAGE> 3
[ATLAS FUNDS LOGO]
FROM THE OFFICE OF MARION O. SANDLER
President and Chief Executive Officer
Dear Valued Investor,
After climbing to record highs in 1996, the stock market continued to
reward investors during the first half of 1997, gaining over 20% as measured by
the Standard & Poor's 500 Index. Bond prices, responding to fears of rising
interest rates, fell during the first quarter -- but as concerns about higher
inflation eased, bonds recovered almost all of their losses during the second
quarter. On June 30th, the yield on the benchmark 30-year Treasury bond was
6.78% versus a yield of 6.64% at the beginning of the year.
Despite the strong gains in stock prices during the first half, the
markets have experienced some of the volatility that can occur when the
interest rate environment is uncertain. We firmly believe that the best way for
you to deal with market fluctuations is to have well-established financial
goals, a diversified portfolio, and a disciplined, long-term approach to
investing.
The Year To Date
The stock market's gains were not accomplished without some turbulence.
Stock prices experienced a nice rally in January, held steady in February, but
dipped sharply in March, after a 0.25% increase in the federal funds rate. The
sell-off of stocks in March caused prices to drop by almost 10% and, at the end
of the first quarter, the Dow Jones Industrial Average and S&P 500 Index were
only about 2% higher than at the beginning of the year. As the economy
continued to show growth without the inflationary pressures that could lead to
higher interest rates, both stock and bond prices recovered, and stocks went on
to post record gains by the end of June. Although large company shares
continued to be the strongest performers overall, small capitalization stocks
experienced a strong recovery during the second quarter.
Nor was market turbulence confined to stocks. Bond prices rose during
the first six weeks of the year, sending yields lower -- but when the expected
slowdown in the economy failed to materialize, inflation fears sent bond prices
falling. After the federal funds rate increase in late March, the yield on
30-year bonds rose above the psychologically important 7% mark. However, an
increase in inflation did not occur and, during the second quarter, bond prices
regained most of their first quarter losses. On June 30th, yields were close
to year end 1996 levels.
The following sections provide an overview of the Atlas Fund family for
the first half of 1997. The total returns discussed below are for Class A
shares and are stated at net asset value, excluding sales charges. For complete
stock and bond fund performance, see page five. Of course, past performance is
no guarantee of future results, but these returns are certainly worth noting.
Money Funds
During the first six months of the year, the Atlas money funds -- U.S.
Treasury Money, California Municipal Money, and National Municipal Money --
provided investors with attractive yields, after-tax advantages, and money
market stability. Atlas money funds continued to hold only top quality
securities and, unlike a large number of municipal money market funds, held no
securities backed by Japanese letters of
[GRAPHIC]
We Want You To Know . . .
Atlas Funds are not FDIC insured and are not deposits or obligations of, or
guaranteed by World Savings. Mutual fund returns and principal value will vary
and you may have a gain or loss when you sell.
<PAGE> 4
credit. We believe the quality of these securities is low, because they rely on
credit enhancements from Japanese banks that are suffering through a period of
poor financial performance.
Intermediate-Term Bond Funds
The U.S. Government Intermediate Fund posted a six-month total return
of 2.77%, outperforming the U.S. Government intermediate fund averge total
return of 2.50%, as tracked by Lipper Analytical Services, Inc. ("Lipper"). The
Atlas U.S. Government Intermediate Fund emphasizes credit quality and invests
exclusively in securities rated "AAA" or the equivalent.
Total returns for the first half were 2.49% for the California Insured
Intermediate Municipal Fund and 2.34% for the National Insured Intermediate
Municipal Fund. Both Funds were invested exclusively in "AAA" rated, insured
securities, and consequently they slightly underperformed their respective
Lipper category averages, which contain funds that invest a significant amount
in lower quality, uninsured issues.
Long-Term Bond Funds
Long-term bond fund prices fell during the first quarter on fears of
higher inflation and interest rates, but the funds recovered most of their
losses by the end of the second quarter. Current strategy for the long-term
municipal bond funds includes reducing price volatility by maintaining shorter
than average maturities. The Funds may hold only investment grade bonds, and
historically have concentrated on the top two grades, "AAA" and "AA." At the end
of the second quarter, the California Municipal Bond Fund was 97% invested in
"AAA" and "AA" securities, and for the National Municipal Bond Fund this
percentage was 94%. Total returns year-to-date through June 30 were 2.45% and
2.86%, respectively. During the first half of the year, lower-rated bonds
generally outperformed high quality issues. As a result, Atlas municipal bond
funds, which hold high quality and shorter maturities slightly underperformed
their Lipper peer group averages.
Despite a volatile market, the U.S. Government and Mortgage Securities
Fund outperformed 96% of U.S. Government funds nationwide for the first six
months of 1997.(1) The Fund had a total return of 3.64% for the first half,
significantly outperforming the 2.47% average for its peer group. The Fund not
only provided an excellent total return but also produced outstanding yields,
outperforming 85% or more of its peers for yield in every single month for the
past five years. The Fund remained invested exclusively in securities rated or
equivalent to "AAA."
The Strategic Income Fund produced a total return for the first half of
4.20% and consistently generated outstanding yields. Among multi-sector income
funds, Lipper has ranked the Fund among the top ten for yield in every month
since its inception.(2) The Fund spreads its assets across three broad sectors
of the bond market: U.S. Government securities, foreign fixed income debt, and
high yield, lower-rated U.S. corporates. During the first two quarters, the
allocations to high yield bonds and emerging markets were increased, and both
sectors rallied to record levels by the end of the second quarter. As of June
30, the Fund was 32% invested in U.S. Government securities, 34% in foreign
bonds, 29% in high yield debt, and 5% in cash equivalents.
Stock Funds
The Atlas Balanced Fund, our most conservative stock fund, experienced
a total return for the first six months of 9.17%. However, because the Fund's
manager was cautious about the markets, the Fund somewhat underperformed its
peer group average. Believing the market to be overvalued, the manager's equity
strategy during the first half of the year was defensive--and the current mix
of 34% stocks, 18% convertible securities, 27% bonds, and 21% short-term cash
equivalents reflects the Fund's defensive posture. The Fund is expected to
follow this strategy for as long as the market is considered overpriced by its
manager.
(continued on next page)
<PAGE> 5
The Atlas Growth and Income Fund produced a first half total return of
12.31%. The Fund trailed its peers the first six months due to smaller
ownership of large-capitalization stocks, which have recently been the
strongest market performers. Additionally, the Fund placed more emphasis on the
technology sector than the average growth and income fund. At the end of the
second quarter, the portfolio was 85% invested in stock, 7% in convertible
securities and bonds, and 8% in cash equivalents.
The Atlas Strategic Growth Fund achieved a total return of 16.56% for
the first six months, outperforming the Lipper average of 14.28% for growth
funds. During the first two quarters, the Fund benefitted significantly from
its holdings in financial and technology stocks, and during the second quarter
its manager took profits in some financial stocks as they reached their price
targets. The Fund defensively maintained a cash position of 20 - 25%, while
searching for stocks that were reasonably priced compared to their earnings
prospects. At the end of the second quarter, the Fund was 79% invested in
equities and 21% in cash equivalents.
The Atlas Global Growth Fund gained 17.88% during the first half of the
year. The Fund's outstanding returns placed it among the top 6% of global funds
for six months and among the top 10% for the year ended June 30, 1997.(3) The
Fund's manager emphasized financial, technology, and health care stocks. In
addition, the portfolio benefitted from exposure to emerging markets, such as
Brazil and Russia. At the end of the second quarter, the Fund was 84% invested
in stocks, 4% in bonds, and 12% in cash.
The Atlas Emerging Growth Fund was introduced on April 30, 1997, to
enable our investors to further diversify their portfolios and take advantage
of opportunities in small company stocks. The Fund invests primarily in smaller
companies with innovative products and services and leadership potential in
their markets. Since its introduction, the Fund has benefitted from strong
gains in the small-capitalization sector and had a total return of 24.40%.
INTRODUCING THE EXCITING NEW ATLAS TAX-DEFERRED ANNUITIES
On January 1, 1997, Atlas Securities introduced Atlas Tax-Deferred
Annuities for sale to World customers whose primary goals are tax-deferred
interest and stability of principal. Our fixed annuities also offer a 1% bonus
rate for one year on each purchase, no initial sales charge, and an insurance
company money back guarantee. Your Atlas Investment Representative will be
happy to provide you with more information and discuss how Atlas Tax-Deferred
Annuities can work for you. Call your Atlas Representative today, or
1-800-933-ATLAS for the name of an Atlas Representative near you.
THE INVESTMENTS YOU WANT FROM THE PEOPLE YOU TRUST
As a sister company of World savings and a member of the $35
billion-strong Golden West Financial Corporation, Atlas is dedicated to giving
you the quality products, personal service and caring professional advice
you've come to expect from World.
We thank you for your continued trust in Atlas and look forward to
serving you for many years to come.
Sincerely,
[MARION O. SANDLER SIGNATURE]
(Mrs.) Marion O. Sandler
President and Chief Executive Officer
(1) Lipper Analytical Services, Inc., ranked the Fund 6 out of 187 for total
return for six months, 17 out of 177 for one year, and 29 out of 77 for
five years ended 6/30/97 for the General U.S. Government Fund category.
(2) Lipper Analytical Services, Inc. ranked the Fund 28 out of 68 for total
return for one year ended 6/30/97 for the Multi-Sector Income Fund
category.
(3) Lipper Analytical Services, Inc. ranked the Fund 12 out of 201 for total
return for six months and 16 out of 175 for the one year ended 6/30/97 for
the Global Fund category.
<PAGE> 6
Atlas Stock and Bond Fund Total Returns for the periods ended June 30, 1997
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<TABLE>
<CAPTION>
Class A Shares Class B Shares (1)
---------------------------------------------------------- --------------------------------------------
12 Months 5 Years Inception To Date 12 Months Inception To Date
------------------ ----------------- ----------------- -------------------- ---------------------
at with at with at with without with without with
net maximum net maximum net maximum deferred deferred deferred deferred
asset sales asset sales asset sales sales sales sales sales
value charge(2) value charge(2) value charge(2) charge charge(3) charge charge(3)
% % % % % % % % % %
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Bond Funds:
California Insured
Intermediate
Municipal(4)........... 6.29 3.10 N.A. N.A. 5.11 4.33 5.47 2.47 5.09 4.48
National Insured
Intermediate
Municipal(4)........... 6.12 2.93 N.A. N.A. 5.05 4.27 5.38 2.38 5.02 4.41
U.S. Government
Intermediate(5)........ 6.84 3.64 N.A. N.A. 4.51 3.84 6.05 3.05 5.10 4.49
California
Municipal Bond(6)...... 7.55 4.32 6.29 5.65 7.68 7.24 7.02 4.02 5.88 5.28
National
Municipal Bond(7)...... 7.54 4.32 6.50 5.85 7.87 7.43 7.10 4.10 6.19 5.59
U.S. Government
and Mortgage
Securities(8).......... 8.37 5.12 6.20 5.55 8.12 7.68 7.83 4.83 7.66 7.08
Strategic Income(9).... 13.34 9.94 N.A. N.A. 11.99 8.97 12.31 9.31 11.04 9.27
STOCK FUNDS:
Balanced(10)........... 18.38 14.83 N.A. N.A. 12.64 11.73 17.68 14.68 16.53 16.04
Growth and
Income(11)............. 20.64 17.02 15.96 15.26 16.72 16.18 20.01 17.01 23.06 22.62
Strategic Growth(10)... 31.18 27.25 N.A. N.A. 18.55 17.59 30.61 27.61 23.01 22.57
Global Growth(12)...... 29.19 25.31 N.A. N.A. 25.80 22.56 28.26 25.26 24.92 23.27
Emerging Growth(13).... N.A. N.A. N.A. N.A. 24.40(13) 20.67(13) N.A. N.A. 24.20(15) 21.20(13)
</TABLE>
(1) 7/1/94 inception for all Class B shares, except for Strategic Income,
Global Growth, and Emerging Growth
(2) Maximum sales charge is 3%
(3) Assumes complete redemtion 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) 5/20/96 inception
(10) 10/1/93 inception
(11) 12/5/90 inception
(12) 4/30/96 inception
(13) Total return is aggregate since 4/30/97 inception
<PAGE> 7
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
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<TABLE>
<CAPTION>
Atlas U.S. Treasury Money Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
UNITED STATES TREASURY
BILLS - 55.20%
4.63% - 4.95% due
07/17/97 - 10/09/97............. $ 19,661,000 $ 19,583,190
5.01% - 5.31% due
08/14/97 - 09/18/97............. 17,574,000 17,409,306
----------
Total United States Treasury Bills (cost:
$36,992,496) 36,992,496
----------
UNITED STATES TREASURY
NOTES - 44.93%
5.63% due 08/31/97 - 10/31/97..... 14,000,000 14,214,786
7.38% - 8.75% due
10/15/97 - 11/15/97............. 15,500,000 15,892,603
----------
Total United States Treasury Notes (cost:
$30,107,389) 30,107,389
----------
TOTAL SECURITIES (COST: $67,099,885) - 100.13% 67,099,885
OTHER ASSETS AND LIABILITIES, NET - (.13)% (86,467)
----------
NET ASSETS - 100.00% $ 67,013,418
==========
<CAPTION>
Atlas California Municipal Money Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER - 10.36%
Contra Costa, Water Authority,
3.55% due 08/04/97............... $ 500,000 $ 500,000
Los Angeles, Metro Transportation
Authority, 3.55% due 08/07/97.... 1,000,000 1,000,000
Los Angeles, Wastewater System,
3.85% due 09/12/97............... 1,000,000 1,000,000
Sacramento, Municipal Utility
District, Series I, 3.65% due
09/24/97......................... 1,500,000 1,500,000
University of California Regents,
Series A, 3.70% due 09/10/97..... 1,000,000 1,000,000
----------
Total Tax-Exempt Commercial Paper (cost:
$5,000,000) 5,000,000
----------
FIXED RATE BONDS AND NOTES - 27.10%
California Housing Finance Agency,
Revenue Home Mortgage, Series A,
MBIA Insured, 4.00% due
08/01/97......................... 1,200,000 1,200,132
California State, General
Obligation Unlimited, MIGI, 11%
due 03/01/98..................... 500,000 522,870
Conejo Valley, Unified School
District, Tax and Revenue
Anticipation Notes, 4.25% due
07/02/98......................... 1,000,000 1,004,320
Contra Costa, Water Authority,
Series A, FGIC Insured, 4.30% due
10/01/97......................... 500,000 500,732
Lemoore, Unified High School
District, AMBAC Insured, 4% due
01/01/98......................... 110,000 110,000
Los Angeles, Unified School
District, Tax and Revenue
Anticipation Notes, 4.50% due
07/01/98......................... 1,000,000 1,006,740
Los Angeles County, Unified School
District, Transportation
Commission Sales Tax Revenue,
Series B, 4.50% due 09/30/97..... 1,000,000 1,001,932
Los Angeles County, Public Works
Financing Authority, Lease
Revenue, MBIA Insured, 3.80% due
12/01/97......................... 500,000 500,070
<CAPTION>
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Los Angeles, Wastewater System
Revenue, 8.125% due 11/01/97..... $ 300,000 $ 310,125
Oakland, Refunding Revenue, Spl -
Series A, FGIC Insured, 6.90% due
08/01/97......................... 200,000 200,566
Oxnard, School District Refunding,
MBIA Insured, 4% due 02/01/98.... 105,000 105,056
Rio Linda, Unified School
District, FSA Insured, 4% due
08/01/97......................... 315,000 315,127
Sacramento County, Tax and Revenue
Anticipation Notes, 4.50% due
09/30/97......................... 1,000,000 1,001,526
San Diego, Regional Building
Authority Lease Revenue, Mts
Tower Project, Series A, 7.70%
due 11/01/97..................... 200,000 206,494
Series A, 7.75% due 11/01/97..... 200,000 206,699
San Diego County, Regional
Transportation Commission Sales
Tax Revenue, Second Senior Sales
Tax, Series A, FGIC Insured, 5%
due 04/01/98..................... 300,000 302,558
San Diego County, Tax And Revenue
Anticipation Notes, 4.375% due
09/30/97......................... 2,000,000 2,002,876
San Francisco City & County, Sewer
Revenue, AMBAC Insured, Series B,
7.25% due 10/01/97............... 350,000 358,317
San Juan, Unified School District,
COP, 4% due 06/01/98............. 525,000 525,690
Southern California Public Power
Authority, Power Project, Series
A, 6.60% due 07/01/97............ 1,100,000 1,100,036
State Pollution Control Financing
Authority, Pollution Control
Revenue Refunding, Chevron USA,
Inc. Project, 4% due 05/15/98.... 300,000 300,379
Walnut Valley, Unified School
District, FGIC Insured, 5.65% due
08/01/97......................... 100,000 100,152
West & Cent Basin Financing
Authority, AMBAC Insured, 4.75%
due 08/01/97..................... 200,000 200,173
----------
Total Tax-Exempt Commercial Paper (cost:
$13,082,570) 13,082,570
----------
VARIABLE RATE DEMAND NOTES* - 66.76%
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, 4.00% due
07/01/16......................... 1,000,000 1,000,000
Alameda-Contra Costa, School
Financing Authority, COP-C, 4.00%
due 07/01/25..................... 1,000,000 1,000,000
Eastern Municipal Water District,
Water and Sewer Revenue, COP,
FGIC Insured, 4.00% due
07/01/20......................... 700,000 700,000
Foothill/Eastern Corridor Agency
California Toll Road Revenue,
Series C, 3.90% due 01/02/35..... 1,800,000 1,800,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 8
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<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Glendale, Revenue Reliance
Development, Public Parking,
3.90% 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 Development
Commission, COP, Willowbrook
Project, 3.90% due 11/01/15...... 300,000 300,000
Los Angeles, Community
Redevelopment Agency, COP,
Baldwin Hills Public Park, 3.90%
due 12/01/14..................... 600,000 600,000
Los Angeles, Multi-Family Housing
Revenue, Masselin Manor, 4.05%
due 07/01/15..................... 100,000 100,000
Los Angeles, Regional Airports
Improvement Corp. Lease Revenue,
American Airlines, Los Angeles
International Airport, Series A,
4.10% due 12/01/24............... 100,000 100,000
Series B, 4.10% due 12/01/24..... 100,000 100,000
Series D, 4.10% due 12/01/24..... 500,000 500,000
Series E, 4.10% due 12/01/24..... 300,000 300,000
Series F, 4.10% due 12/01/24..... 300,000 300,000
Los Angeles County, Metro
Transportation Authority Sales
Tax Revenue, Series A, 4% due
07/01/20......................... 300,000 300,000
Los Angeles County, Pension
Obligation, Series C, AMBAC
insured, 3.90% due 06/30/07...... 400,000 400,000
Los Angeles County, Regional
Airports Improvement Corp.,
Terminal Facilities Completion
Revenue, Los Angeles
International Airport, AMT, 4.15%
due 12/01/25..................... 2,400,000 2,400,000
Northern California Power Agency
Public Power Revenue Refunding,
Geothermal Project 3, Series A,
AMBAC Insured, 3.90% due
07/01/05......................... 1,500,000 1,500,000
Otay, Water District, COP, Capital
Projects, 3.90% due 09/01/26..... 700,000 700,000
Palm Springs, Community
Redevelopment Agency, COP,
Project #10, 3.90% due
12/01/14......................... 400,000 400,000
Project #8, 3.90% due 12/01/14... 1,000,000 1,000,000
Riverside, Multi-Family Revenue
Refunding, Sierra Apartments,
Series A, 4.10% due 06/01/05..... 500,000 500,000
Sacramento County, COP,
Administrative Center and Court
House Project, 3.90% due
06/01/20......................... 900,000 900,000
Sacramento, Multi-Family Housing
Revenue, Smoke Tree Apartments,
Series A, 4% due 04/15/10........ 1,000,000 1,000,000
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
San Bernardino County, Industrial
Development Revenue, Tower
Industries, Series IV, AMT, 4.10%
due 12/01/06..................... $ 875,000 $ 875,000
San Diego County, Multi-Family
Housing Revenue, Country Hills,
Series A, 4% due 08/15/13........ 280,000 280,000
San Jose, Multi-Family Mortgage
Revenue, Somerset Park, Series A,
AMT, 4.10% due 11/01/17.......... 1,600,000 1,600,000
State Health Facilities Financing
Authority Revenue Refunding,
Catholic Healthcare West, Series
B, MBIA Insured, 4.05% due
07/01/05......................... 800,000 800,000
Children's Hospital, MBIA
Insured, 4% due 11/01/21......... 100,000 100,000
Enloe Memorial Hospital, Series
A, 3.90% due 01/01/16............ 200,000 200,000
Multi-Family Housing III, Series
B, AMT, 4.20% due 05/01/39....... 1,600,000 1,600,000
Pool Program, Series 1990A, 4%
due 09/01/20..................... 600,000 600,000
State Pollution Control Financing
Authority, Industrial Development
Revenue, Southdown, Inc., 3.90%
due 4/15/98...................... 300,000 300,000
State Pollution Control Financing
Authority, Pollution Control
Revenue Refunding, Delano
Project, AMT, 4.25% due
8/01/19.......................... 300,000 300,000
Pacific Gas & Electric, Series B,
AMT, 4% due 12/01/16............. 1,000,000 1,000,000
Rocklin, Series B, AMT, 4.25% due
06/01/17......................... 100,000 100,000
Southdown, Inc., Series B, 3.90%
due 02/15/98..................... 395,000 395,000
Southdown, Inc., Series B, 3.90%
due 09/15/98..................... 900,000 900,000
State Pollution Control Financing
Authority, Resource Recovery
Revenue Refunding, Burney Forest
Products Project, Series A, AMT,
3.95% due 09/01/20............... 300,000 300,000
Statewide Communities Development
Corp. Revenue, Industrial
Development, Encore Video, AMT,
4.10% due 08/01/07............... 300,000 300,000
Florestone, AMT, 4.10% due
05/01/09......................... 830,000 830,000
Karcher Property Project, Series
C, AMT, 4.05% 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
</TABLE>
7
<PAGE> 9
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Staub Project, Series A, AMT,
4.10% due 08/01/02............... $ 640,000 $ 640,000
Tri-Valley Industrial
Development, Series F, AMT, 4.05%
due 12/01/10..................... 700,000 700,000
----------
Total Variable Rate Demand Notes (cost:
$32,220,000) 32,220,000
----------
TOTAL SECURITIES (COST: $50,302,570) - 104.22% 50,302,570
OTHER ASSETS AND LIABILITIES, NET - (4.22)% (2,037,795)
----------
NET ASSETS - 100.00% $ 48,264,775
==========
Atlas National Municipal Money Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
TAX-EXEMPT COMMERCIAL PAPER - 3.90%
West Virginia, Public Energy
Authority, Energy Revenue,
Morgantown Association Project,
AMT, 3.90% due 07/01/17.......... $ 300,000 $ 300,000
----------
Total Tax-Exempt Commercial Paper (cost: $300,000) 300,000
----------
FIXED RATE BONDS AND NOTES - 53.97%
Arizona State, COP, Series C, FSA
Insured, 4.70% due 11/01/97...... 150,000 150,429
Austin, Texas Independent School
District Refunding, 4.60% due
08/01/97......................... 250,000 250,148
Baltimore, Maryland, MBIA Insured,
9% due 10/15/97.................. 250,000 253,655
Broward County, Florida, Water and
Sewerage Utilities Revenue, 7.35%
due 10/01/97..................... 200,000 205,604
Connecticut State, Series B, 4.10%
due 09/15/97..................... 100,000 100,069
Douglas County, Colorado, School
District North Region 1, COP,
MBIA Insured, 4.70% due
12/15/97......................... 160,000 159,987
East Orange, New Jersey, FSA
Insured, 5.10% due 08/01/97...... 100,000 100,076
Fargo, North Dakota, Refunding,
Series B, 3.80% due 07/01/97..... 100,000 100,000
Indian River County, Florida,
AMBAC Insured, 3.75% due
07/01/97......................... 100,000 100,000
Lancaster, Pennsylvania, School
District, FGIC Insured, 5.60% due
11/01/97......................... 100,000 100,563
Las Cruces, New Mexico, School
District, MBIA Insured, 6.625%
due 08/01/97..................... 220,000 220,488
Maryland State, Department of
Transportation, 6.30% due
11/01/97......................... 100,000 100,809
Missouri State, Third St.
Building, Series A, 7.00% due
08/01/97......................... 300,000 306,759
7.125% due 08/01/97.............. 100,000 102,263
<CAPTION>
Atlas National Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Neptune Beach, Florida, Water and
Sewerage Revenue, FGIC Insured,
4.90% due 10/01/97............... $ 105,000 $ 105,178
New Hampshire, Higher Educational
and Health Finance Authority,
Concord Hospital Issue, AMBAC
Insured, 3.85% due 10/01/97...... 300,000 300,061
Niles, Illinois, Public Library
District, FSA Insured, 5.60% due
12/01/97......................... 100,000 100,724
Sanford, Florida, Water and Sewer
Revenue, AMBAC Insured, 7% due
10/01/97......................... 120,000 122,613
Texas State Tax and Revenue
Anticipation Notes, 4.75% due
08/29/97......................... 200,000 200,481
Thornton, Colorado, Development
Authority Tax Increment, MBIA
Insured, 3.90% due 12/01/97...... 265,000 264,981
University of Texas, Permanent
University Fund Refunding, 4% due
07/01/97......................... 100,000 100,000
Washington State Refunding, Series
R-92C, 4.90% due 09/01/97........ 100,000 100,176
Wichita, Kansas, Sales Tax, 4.50%
due 10/01/97..................... 250,000 250,280
Will County, Illinois, Public
Building Commission, FGIC
Insured, 5% due 12/01/97......... 350,000 351,840
----------
Total Fixed Rate Bonds and Notes (cost:
$4,147,184) 4,147,184
----------
VARIABLE RATE DEMAND NOTES* - 49.38%
Alaska Industrial Development and
Export Authority, AMT, 4.20% due
05/01/09......................... 200,000 200,000
Clark County, Arkansas, Solid
Waste Disposal Reynolds Metals,
AMT, 4.20% due 08/01/22.......... 300,000 300,000
Dubuque, Iowa, Industrial
Development Revenue, Swiss Valley
Farms Co. Project, AMT, 4.25% 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
Grapevine, Texas, Industrial
Development Corp., American
Airlines, Series A3, 4.10% due
12/01/24......................... 300,000 300,000
Illinois, Development Finance
Authority Revenue, Residential
Rental, F.C. Harris Pavillion
Project, AMT, FNMA Insured, 4.25%
due 04/01/24..................... 200,000 200,000
Lone Star, Texas, Airport
Improvement Authority, 4.10% due
12/01/14......................... 100,000 100,000
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
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE> 10
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Money Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Morgan State, Utah, Solid Waste
Disposal, Holman Project, AMT,
4.20% 08/01/31................... $ 100,000 $ 100,000
Municipal Electric Authority,
Georgia, Project One, Series E,
4.20% due 01/10/26............... 200,000 200,000
Ohio State Air Quality Development
Authority, AMT, 4.20% due
04/01/29......................... 200,000 200,000
Phenix City, Alabama, Industrial
Development Board Environmental
Improvement Revenue, AMT, 4.15%
due 06/01/28..................... 300,000 300,000
Prairie Du Chien, Wisconsin,
Industrial Development Revenue,
Oxford International Ltd., 4.40%
due 06/01/02..................... 300,000 300,000
South Carolina Jobs Economic
Development Authority, Series
1992, AMT, 4.55% due 12/01/12.... 100,000 100,000
St. Louis, Missouri Industrial
Development Authority, Service
Merchandise Corp. Inc. Project
3.85% due 09/15/98............... 100,000 100,000
Texas, North Texas Higher
Education Authority, Inc., Texas
Student Loan Revenue Refunding
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, 4.25% due 11/01/13.......... 300,000 300,000
Winston-Salem, North Carolina,
COP, Risk Acceptance Management
Corp., 4.20% due 07/01/09........ 195,000 195,000
----------
Total Variable Rate Demand Notes (cost:
$3,795,000) 3,795,000
----------
TOTAL SECURITIES (COST: $8,242,184) - 107.25% 8,242,184
OTHER ASSETS AND LIABILITIES, NET - (7.25)% (557,197)
----------
NET ASSETS - 100.00% $ 7,684,987
==========
Atlas California Insured Intermediate
Municipal Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
BONDS - 95.11%
Contra Costa, Transportation
Authority Sales Tax Revenue,
Series A, FGIC Insured, 6% due
03/01/08......................... $ 500,000 $ 546,980
Cupertino Unified School District,
Series A, FGIC Insured, 6.75% due
08/01/05......................... 500,000 571,155
Elk Grove Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured, 6.50% due 12/01/06...... 600,000 682,878
Encina Financing Joint Powers
Authority, Wastewater Revenue,
Series A, AMBAC Insured, 5.50%
due 08/01/06..................... 400,000 423,424
<CAPTION>
Atlas California Insured Intermediate
Municipal Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Folsom School Facilities Project,
Series B, FGIC Insured, 6% due
08/01/98......................... $ 425,000 $ 434,958
6% due 08/01/99.................. 225,000 233,912
Fresno Water System Revenue, Water
Remediation Project, Series A,
FGIC Insured, 7.50% due
06/01/04......................... 500,000 585,885
7.50% due 06/01/05............... 715,000 845,609
Kern High School District
Refunding, Series A, MBIA
Insured, 6% due 08/01/04......... 500,000 543,475
Lincoln Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured, 6% due 09/01/06......... 580,000 634,247
Los Angeles County, Metropolitan
Transportation Authority Sales
Tax Revenue, Proposition C, AMBAC
Insured,
Second Series A, 5.90% due
07/01/06........................ 500,000 544,780
Second Series B, 8% due
07/01/00........................ 500,000 552,485
Los Angeles County, Public Works
Financing Authority, Lease
Revenue Refunding, AMBAC Insured,
6% due 12/01/07.................. 750,000 819,218
Los Angeles Wastewater System
Revenue, Series B, AMBAC Insured,
5.90% due 06/01/03............... 450,000 482,643
Port of Oakland, Port Revenue,
Series E, AMT, MBIA Insured, 6%
due 11/01/02..................... 500,000 534,705
Puerto Rico, Electric Power
Authority Power Revenue, MBIA
Insured, Series W, 6.50% due
07/01/05......................... 250,000 281,325
Series Y, 6.50% due 07/01/06..... 500,000 565,840
Puerto Rico, Public Buildings
Authority Revenue, Gtd.
Government Facilities, Series A,
AMBAC Insured, 6.75% due
07/01/04......................... 700,000 793,261
Riverside County Transportation
Commission, Sales Tax Revenue,
Series A, AMBAC Insured, 6.625%
due 06/01/02..................... 1,000,000 1,101,830
FGIC Insured, 6% due 06/01/09.... 400,000 436,704
Sacramento Municipal Utility
District, Electric Revenue
Refunding, Series Z, FGIC
Insured, 6% due 07/01/02......... 475,000 509,675
San Francisco Bay Area Rapid
Transit District, Sales Tax
Revenue, FGIC Insured, 6.20% due
07/01/01......................... 750,000 803,025
San Francisco City and County
Airport Commission, International
Airport Revenue Refunding, Second
Series Issue 12, FGIC Insured,
5.625% due 05/01/06.............. 500,000 529,385
</TABLE>
9
<PAGE> 11
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Insured Intermediate
Municipal Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
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 $ 597,450
State Housing Finance Agency
Revenue, Home Mortgage, AMT, MBIA
Insured, Series L, 5.55% due
08/01/05......................... 800,000 817,832
State Pollution Control Financing
Authority, Pollution Control
Revenue, Southern California
Edison, Series A, AMT, MBIA
Insured, 6.90% due 09/01/06...... 410,000 435,424
Tri-City Hospital District Revenue
Refunding, Series A, MBIA Insured
6% due 02/15/03.................. 700,000 750,547
Turlock Irrigation District
Revenue Refunding, Series A, MBIA
Insured, 5.90% due 01/01/02...... 80,000 84,988
6% due 01/01/07.................. 1,000,000 1,093,100
University of Puerto Rico,
University Revenue Refunding,
Series N, MBIA Insured, 6% due
06/01/99......................... 500,000 517,530
Westside Unified School District
Refunding, Series C, AMBAC
Insured, 6% due 08/01/14......... 300,000 324,099
----------
Total Bonds (cost: $17,564,877) 18,078,369
----------
VARIABLE RATE DEMAND NOTES* - 3.16%
Los Angeles, Regional Airports
Improvement Authority, AMT, 4.15%
due 12/01/25..................... 600,000 600,000
----------
Total Variable Rate Demand Notes (cost: $600,000) 600,000
----------
TOTAL SECURITIES (COST: $18,164,877) - 98.27% 18,678,369
OTHER ASSETS AND LIABILITIES, NET - 1.73% 329,759
----------
NET ASSETS - 100.00% $ 19,008,128
==========
Atlas National Insured Intermediate
Municipal Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
BONDS - 96.50%
Boulder, Larimer & Weld Counties,
Colorado, Saint Vrain Valley
School District RE1J Refunding,
Series A, MBIA Insured, 5.80% due
12/15/07......................... $ 500,000 $ 525,640
Cook County, Illinois, Series C,
FGIC Insured, 6% due 11/15/08.... 500,000 542,040
MBIA Insured, 7.25% due
11/01/07......................... 620,000 734,787
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 1,116,490
<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 $ 642,048
Eagle, Garfield & Routt Counties,
Colorado, School District RE50J,
FGIC Insured, 6.10% due
12/01/03......................... 400,000 433,700
Fowlerville, Michigan, Community
Schools, School District,
MBIA-SBLF Insured, 6.50% due
05/01/05......................... 550,000 608,531
Johnson County, Kansas, Refunding,
Internal Improvement, Series A,
FSA Insured, 5.60% due
09/01/03......................... 500,000 526,285
Massachusetts, State Construction
Loan, Series A, FGIC Insured,
6.90% due 03/01/04............... 30,000 31,200
Metropolitan Transportation
Authority, New York,
Transportation Facilities
Revenue, Series A, MBIA Insured,
6% due 07/01/07.................. 190,000 206,059
North Reading, Massachusetts,
Refunding, MBIA Insured, 6.30%
due 06/15/01..................... 500,000 535,090
Pennsylvania, State Industrial
Development Authority Revenue,
Economic Development, AMBAC
Insured, 7% due 07/01/06......... 500,000 577,275
Pinal County, Arizona, Unified
School District 43, Apache JCT,
Series A, FGIC Insured, 6.80% due
07/01/09......................... 425,000 494,258
Rhode Island, Housing and Mortgage
Finance Corp., Multi-Family
Housing, Series A, AMBAC Insured,
5.55% due 07/01/05............... 500,000 512,650
Rhode Island, State Refunding,
Series A, FGIC Insured, 6% due
06/15/02......................... 500,000 532,305
Shawnee County, Kansas, Unified
School District 501, FGIC
Insured, 7.30% due 02/01/02...... 250,000 278,978
Tarrant County, Texas, Health
Facilities Development Corp.,
Health System Revenue Refunding,
Harris Methodist Health System,
Series A, AMBAC Insured, 6% due
09/01/04......................... 750,000 803,520
Thornton, Colorado, Water
Refunding, FGIC Insured, 5.65%
due 12/01/03..................... 600,000 635,472
University of Colorado, University
Revenue Refunding, Resh Building
Revolving Fund, MBIA Insured, 6%
due 06/01/05..................... 620,000 668,087
Westminster, Colorado, Sales & Use
Tax Refunding Revenue, Series A,
FGIC Insured, 6.25% due
12/01/12......................... 500,000 542,395
Wisconsin, State Health and
Educational Facilities Authority
Revenue, Aurora Medical Group,
Inc. Project, FSA Insured, 5.75%
due 11/15/07..................... 500,000 529,205
----------
Total Bonds (cost: $11,132,735) 11,476,015
----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE> 12
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Insured Intermediate
Municipal Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
VARIABLE RATE DEMAND NOTES* - 2.52%
Grapevine, Texas, Industrial
Development Corp., American
Airlines, Series A3, 4.10% due
12/01/24......................... $ 100,000 $ 100,000
South Carolina, Jobs Economic
Development Authority, Series
1992, AMT, 4.55% due 12/01/12.... 100,000 100,000
Southampton County, Virginia,
Industrial Development Authority,
Hadson Power, Series 90A, AMT,
4.55% due 04/01/15............... 100,000 100,000
----------
Total Variable Rate Demand Notes (cost: $300,000) 300,000
----------
TOTAL SECURITIES (COST: $11,432,735) - 99.02% 11,776,015
OTHER ASSETS AND LIABILITIES, NET - 0.98% 116,079
----------
NET ASSETS - 100.00% $ 11,892,094
==========
Atlas U.S. Government Intermediate Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
U.S. GOVERNMENT AGENCIES - 98.35%
Federal National Mortgage
Association 5.38% due 07/29/97... $ 50,000 $ 49,492
5.42% due 09/29/97............... 120,000 117,796
5.45% due 10/20/97............... 75,000 73,535
5.50% due 01/01/03............... 89,230 85,215
6.00% due 04/01/01 - 12/01/02.... 2,861,996 2,793,531
6.50% due 11/01/02............... 1,754,103 1,739,737
7.00% due 11/01/25............... 736,100 722,614
----------
Total U.S. Government Agencies (cost: $5,691,938) 5,581,920
----------
TOTAL SECURITIES (COST: $5,691,938) - 98.35% 5,581,920
OTHER ASSETS AND LIABILITIES, NET - 1.65% 93,564
----------
NET ASSETS - 100.00% $ 5,675,484
==========
Atlas California Municipal Bond Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
BONDS - 97.18%
Acalanes Unified High School
District, Series C, FGIC Insured,
6.25% due 08/01/14............... $ 500,000 $ 522,640
6.25% due 08/01/15............... 500,000 522,640
Alameda County, COP, BIG Insured,
7.25% due 12/01/08............... 1,000,000 1,112,830
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Anaheim Public Financing
Authority, Lease Revenue Public
Improvements Project, Series A,
FSA Insured, 5.00% due
03/01/37......................... $ 4,000,000 $ 3,595,760
Benicia Unified School District,
Series A, AMBAC Insured, 6.85%
due 08/01/16..................... 1,000,000 1,090,110
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 1,764,375
Un-Refunded, Series A, MBIA
Insured, 6.75% due 08/01/22...... 660,000 716,536
Burbank, Glendale, Pasadena
Airport Authority, Airport
Revenue Refunding, AMBAC Insured,
6.40% due 06/01/10............... 2,000,000 2,135,040
Calleguas Municipal Water
District, COP, System Improvement
Project, AMBAC Insured, 6.25% due
07/01/11......................... 1,680,000 1,830,881
Central Coast Water Authority,
Revenue Refunding, State Water
Project, Regional Facilities,
Series A, AMBAC Insured, 5% due
10/01/22......................... 1,250,000 1,153,925
Contra Costa Water District, Water
Treatment Revenue Refunding,
Series G, MBIA Insured, 5.90% due
10/01/08......................... 3,600,000 3,857,184
Cotati-Rohnert Park Unified School
District, Series A, FGIC Insured,
6% due 08/01/14.................. 845,000 871,136
6% due 08/01/15.................. 905,000 932,992
Elk Grove Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured, 6.50% due 12/01/24...... 1,500,000 1,718,040
Kern High School District, Series
1990-C, MBIA Insured, 6.25% due
08/01/12......................... 1,200,000 1,329,216
Long Beach Harbor Revenue, AMT,
MBIA Insured, 5.25% due
05/15/25......................... 2,000,000 1,864,380
Los Angeles, Harbor Development
Revenue, 7.60% due 10/01/18...... 140,000 173,977
Los Angeles, Wastewater System
Revenue Refunding, Series A, MBIA
Insured, 5.875% due 06/01/24..... 2,250,000 2,288,115
Series B, AMBAC Insured, 6.25%
due 06/01/12..................... 2,500,000 2,668,250
Series C, AMBAC Insured, 7% due
06/01/11......................... 1,000,000 1,067,430
Series D, MBIA Insured, 6.70% due
12/01/21......................... 3,000,000 3,292,530
Los Angeles Convention and
Exhibition Center Authority
Refunding, COP Refunding, AMBAC
Insured, 7% due 08/15/08......... 500,000 549,970
</TABLE>
11
<PAGE> 13
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Los Angeles County, Public Works
Financing Authority Lease
Revenue, Series B, MBIA Insured,
5.25% due 09/01/15............... $ 1,000,000 $ 972,550
Los Angeles County, Transportation
Commission, Sales Tax Revenue,
Proposition C, Second Series A,
MBIA Insured, 6.25% due
07/01/13......................... 8,980,000 9,599,350
Series B, AMBAC Insured, 6.50%
due 07/01/13..................... 1,750,000 1,889,457
Los Angeles Department of Water
and Power, Electric Plant
Revenue, 7.10% due 01/15/31...... 500,000 544,975
7.125% due 05/15/30.............. 1,875,000 2,029,669
MSR Public Power Agency, San Juan
Project Revenue, Series E, MBIA
Insured, 6.75% due 07/01/11...... 3,000,000 3,253,500
Manhattan Beach Unified School
District, Series A, FGIC Insured,
0% due 09/01/16.................. 2,690,000 922,778
Marin Municipal Water District
Water Revenue, MBIA Insured,
5.65% due 07/01/23............... 2,000,000 1,978,500
Maritime Infrastructure Authority,
Airport Revenue, San Diego
University, Port District
Airport, AMT, AMBAC Insured, 5%
due 11/01/20..................... 9,500,000 8,635,500
Metropolitan Water District,
Southern California Waterworks
Revenue, 5.50% due 07/01/19...... 2,500,000 2,431,650
Series C, 5% due 07/01/27........ 2,000,000 1,831,980
Series G, 6.50% due 03/01/12..... 2,500,000 2,611,600
Mountain View Capital Improvements
Financing Authority Revenue, City
Hall Community Theater, MBIA
Insured, 6.25% due 08/01/12...... 1,500,000 1,602,735
New Haven Unified School District
Refunding, MBIA Insured, 5.75%
due 08/01/11..................... 925,000 955,340
Northern California Power Agency
Public Power Revenue Refunding,
Hydroelectric Project 1, Series
A, AMBAC Insured, 7.50% due
07/01/23......................... 50,000 62,265
MBIA Insured, 6.25% due
07/01/12......................... 1,500,000 1,602,765
Oakland Redevelopment Agency,
Revenue Refunding, Pension
Financing, Series A, FGIC
Insured, 7.60% due 08/01/21...... 1,250,000 1,319,862
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 2,163,620
Palo Alto Unified School District,
Series B, 5.375% due 08/01/18.... 1,250,000 1,230,575
Pleasanton Unified School
District, Series F, FGIC Insured,
6.25% due 08/01/14............... 570,000 600,244
6.25% due 08/01/15............... 610,000 642,367
6.25% due 08/01/16............... 650,000 684,489
Puerto Rico Commonwealth
Refunding, MBIA Insured, 6.25%
due 07/01/12..................... 1,000,000 1,111,760
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
Puerto Rico Public Buildings
Authority Revenue, Series A,
AMBAC Insured, 6.25% due
07/01/14......................... $ 1,000,000 $ 1,110,360
Redding Joint Powers Financing
Authority, Electric Systems
Revenue Refunding, Series A, MBIA
Insured, 5.25% due 06/01/15...... 2,000,000 1,963,480
Riverside Electric Revenue, 6% due
10/01/15......................... 1,500,000 1,531,365
Rural Home Mortgage Financing
Authority, Single Family Revenue
Refunding, Series C, AMT, 7.50%
due 08/01/27..................... 1,205,000 1,340,791
Sacramento Municipal Utility
District Electric Revenue
Refunding, Series Z, FGIC
Insured, 6.45% due 07/01/10...... 2,500,000 2,687,125
San Bernardino County, COP,
Medical Center Financing Project,
MBIA Insured, 5% due 08/01/28.... 1,500,000 1,357,890
San Bernardino County
Transportation Authority Sales
Tax Revenue, Series A, FGIC
Insured, 6% due 03/01/10......... 2,500,000 2,661,675
San Bernardino Health Care System
Revenue, Sisters of Charity,
Series A, 7% due 07/01/21........ 3,230,000 3,600,772
San Diego Public Safety
Communication Project, 6.50% due
07/15/09......................... 1,525,000 1,737,463
San Francisco City and County,
Series 95 A & B, FGIC Insured,
5.50% due 06/15/13............... 1,145,000 1,157,458
Series E, 6.50% due 06/15/11..... 2,220,000 2,341,456
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 3,222,090
6.50% due 05/01/13............... 2,000,000 2,170,500
San Francisco City and County
Public Utilities Commission Water
Revenue Refunding, Series A, 6%
due 11/01/15..................... 1,000,000 1,029,280
6.50% due 11/01/17............... 1,000,000 1,104,840
San Francisco City and County
Sewer Revenue Refunding, AMBAC
Insured, 6% due 10/01/11......... 2,280,000 2,394,433
San Joaquin Hills Transportation
Corridor Agency, Toll Road
Revenue, 0% due 01/01/07......... 1,000,000 837,100
0% due 01/01/09.................. 1,000,000 848,160
San Jose Redevelopment Agency Tax
Allocation, Merged Area
Redevelopment Project Refunding,
MBIA Insured, 5% due 08/01/20.... 2,500,000 2,297,775
Santa Barbara, Revenue COP,
Retirement Services, 5.75% due
08/01/20......................... 2,000,000 1,974,720
Santa Clara Electric Revenue,
Series A, MBIA Insured, 6.25% due
07/01/19......................... 3,750,000 4,003,687
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE> 14
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Santa Clara Local Government
Finance Authority Revenue
Refunding, BIG Insured, 7.25% due
02/01/13......................... $ 250,000 $ 267,115
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 2,416,800
Santa Monica, Malibu Unified
School District, Public School
Facilities Reconstruction
Projects A, 6.90% due 08/01/11... 500,000 550,080
Saugus Unified School District,
Series A, MBIA Insured, 5.65% due
09/01/11......................... 2,035,000 2,092,713
Southern California Public Power
Authority Power Project Revenue
Refunding, Hydroelectric Hoover
Uprating Project, Series A,
6.625% due 10/01/05.............. 600,000 655,308
Southern California Public Power
Authority Transmission Project
Revenue Refunding, Southern
Transportation System, 5.75% due
07/01/10......................... 2,000,000 2,020,140
Southern California Rapid Transit
District, COP, Workers
Compensation Fund, MBIA Insured,
6% due 07/01/10.................. 1,000,000 1,048,180
State, Refunding, AMBAC Insured,
5.25% due 06/01/21............... 1,000,000 957,940
State, Various Purpose, 6.125% due
10/01/11......................... 1,000,000 1,098,570
State Department of Water
Resources Central Valley Project
Revenue,
Series J-2, 6.125% due
12/01/13......................... 2,225,000 2,324,213
Series J-3, 5.50% due 12/01/23... 3,000,000 2,906,490
Series O, 5% due 12/01/15........ 2,000,000 1,880,600
Series O, 4.75% due 12/01/25..... 2,000,000 1,731,540
State Educational Facilities
Authority Revenue Refunding,
Pepperdine University, MBIA
Insured, 6.10% due 03/15/14...... 2,595,000 2,724,049
Santa Clara University, MBIA
Insured, 5.75% due 09/01/18...... 3,255,000 3,284,262
State Health Facilities Financing
Authority Revenue Refunding,
Adventist Health System West,
Series B, MBIA Insured, 6.40% due
03/01/02......................... 1,000,000 1,080,890
Sutter Health Systems, Series A,
AMBAC-TCRS Insured, 6.70% due
01/01/13......................... 1,000,000 1,040,680
State Housing Finance Agency
Revenue Home Mortgage, Series H,
AMT, 6.15% due 08/01/16.......... 2,020,000 2,057,249
Series K, MBIA Insured, 6.15% due
08/01/16......................... 3,000,000 3,094,710
Series Q, MBIA Insured, 5.85% due
08/01/16......................... 1,000,000 1,019,040
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
State Housing Finance Agency
Revenue, Multi-Family Housing,
Series B, AMT, AMBAC Insured,
6.05% due 08/01/16............... $ 2,000,000 $ 2,027,280
State Pollution Control Financing
Authority, Pollution Control
Revenue,
Pacific Gas & Electric Co.,
Series B, MBIA Insured, 5.85% due
12/01/23......................... 2,000,000 2,009,120
Southern California Edison, AMT,
MBIA Insured, 6.90% due
12/01/17......................... 1,000,000 1,084,720
State Public Works Board, Lease
Revenue, Department of
Corrections, AMBAC Insured,
Series A, 5.25% due 01/01/21..... 2,000,000 1,914,160
Truckee, Donner Public Utility
District, COP, Water System
Improvement Project, MBIA
Insured, 6.75% due 11/15/21...... 1,000,000 1,115,430
Turlock Irrigation District
Revenue Refunding, Series A, MBIA
Insured, 6% due 01/01/10......... 1,000,000 1,087,280
Vallejo Revenue Water Improvement
Project, Series B, FGIC Insured,
6.50% due 11/01/14............... 4,000,000 4,510,840
Watsonville Water Revenue
Refunding, Series A, MBIA
Insured, 6% due 05/15/16......... 1,915,000 1,987,598
----------
Total Bonds (cost: $164,951,352) 175,094,905
----------
VARIABLE RATE DEMAND NOTES* - 1.22%
Los Angeles, Regional Airports
Improvement Corp. Lease Revenue,
American Airlines - LAX,
Series B, 4.10% due 12/01/24..... 100,000 100,000
Series D, 4.10% due 12/01/24..... 100,000 100,000
Series F, 4.10% due 12/01/24..... 100,000 100,000
4.10% due 12/01/25............... 200,000 200,000
Los Angeles County, Regional
Airports Improvement Corp.,
Terminal Facilities Completion
Revenue, Los Angeles
International Airport, AMT, 4.15%
due 12/01/25..................... 200,000 200,000
Moorpark Multi-Family Revenue,
LeClub Apartments Project, Series
A, 4.05% due 11/01/15............ 300,000 300,000
Palm Springs Community
Redevelopment Agency, Project #2,
3.90% due 12/01/14............... 300,000 300,000
State Educational Facilities
Authority Revenue Refunding,
Foundation for Educational
Achievement, Series A, 4.15% due
07/01/26......................... 800,000 800,000
</TABLE>
13
<PAGE> 15
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
State Pollution Control Financing
Authority, Resource Recovery
Revenue Refunding, Burney Forest
Products Project, AMT, 3.95% due
09/01/20......................... $ 100,000 $ 100,000
----------
Total Variable Rate Demand Notes (cost $2,200,000) 2,200,000
----------
TOTAL SECURITIES (COST: $167,151,352) - 98.40% 177,294,905
OTHER ASSETS AND LIABILITIES, NET - 1.60% 2,873,349
----------
NET ASSETS - 100.00% $180,168,254
==========
Atlas National Municipal Bond Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
BONDS - 97.00%
Adams County, Colorado, School
District 12, Thornton, Series A,
MBIA Insured, 6.75% due
12/15/07......................... $ 1,065,000 $ 1,233,217
Alabama State Docks Department,
Docks Facilities Revenue, AMT,
MBIA Insured,
6.10% due 10/01/13............... 1,000,000 1,048,380
Anchorage, Alaska, Electric
Utility Revenue Refunding, Senior
Lien, MBIA Insured, 8% due
12/01/10......................... 985,000 1,240,214
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 1,576,920
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 1,102,965
Central Coast Water Authority,
California Revenue Refunding
State Water Project, Regional
Facilities, Series A, AMBAC
Insured, 5% due 10/01/22......... 1,000,000 923,140
Chicago, Illinois, Metropolitan
Water Reclamation District,
Greater Chicago Capital
Improvement,
7.25% due 12/01/12............... 1,500,000 1,811,655
Chicago, Illinois, Park District
Aquarium & Museum, Series B,
6.50% due 11/15/13............... 2,500,000 2,716,575
Chicago, Illinois, Public Building
Commission Mortgage Revenue,
Board of Education, Series A,
MBIA Insured,
7.125% due 01/01/15.............. 125,000 136,148
Cleveland, Ohio, Waterworks
Revenue First Mortgage Refunding,
Series F-92B, AMBAC Insured,
6.25% due 01/01/16............... 1,000,000 1,062,520
Colorado, Housing Finance
Authority, Single Family Program,
Senior Series A-1, AMT,
7.40% due 11/01/27............... 1,000,000 1,109,440
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Colorado Springs, Colorado,
Utilities Revenue Refunding,
Series A,
6.50% due 11/15/15................ $ 2,000,000 $ 2,151,120
Cumberland County, New Jersey,
Improvement Authority, Solid Waste
Disposal Revenue, FGIC Insured, 6%
due 01/01/01...................... 500,000 521,325
Dallas, Fort Worth, Texas, Regional
Airport Revenue, Joint
Dallas-Fort, AMT, MBIA Insured,
5.50% due 11/01/23................ 1,500,000 1,445,370
Georgia, Municipal Electric
Authority Power Revenue, Series O,
8.125% due 01/01/17............... 50,000 51,971
Harris County, Texas Toll Road,
Senior Lien, FGIC Insured, 5.375%
due 08/15/20...................... 1,000,000 957,220
Illinois Health Facilities
Authority Revenue Refunding,
Sherman Hospital Project MBIA
Insured, 6.75% due 08/01/11....... 1,000,000 1,078,320
Indiana State Office Building
Commission, Capital Complex
Revenue, Senate Avenue Parking,
Series A, MBIA Insured, 7.25% due
07/01/12.......................... 50,000 55,008
Indianapolis, Indiana, Airport
Authority Revenue, Special
Facilities, Federal Express Corp.,
AMT,
7.10% due 01/15/17................ 500,000 551,850
Jacksonville, Florida, Electric
Authority Revenue Refunding, Saint
John's River Project, Issue 2,
Series 5,
6.50% due 10/01/14................ 500,000 531,710
Kansas City, Kansas, Utility System
Revenue Refunding and Improvement,
FGIC Insured, 6.375% due
09/01/23.......................... 1,500,000 1,626,870
Kern, California High School
District, Series 1990-C Election,
MBIA Insured,
6.25% due 08/01/10................ 545,000 605,936
Lakota, Ohio, Local School
District, AMBAC Insured, 7% due
12/01/09.......................... 1,740,000 2,057,202
Lansing, Illinois, Refunding, FGIC
Insured, 8.25% due 12/01/07....... 25,000 25,952
Maine State Housing Authority
Mortgage Purchase, Series A-1,
AMT, AMBAC Insured, 6.40% due
11/15/14.......................... 1,400,000 1,452,066
Maricopa County, Arizona, Unified
School District 69, Paradise
Valley Refunding, MBIA Insured,
6.35% due 07/01/10................ 600,000 673,698
Massachusetts State Health and
Educational Facilities Authority
Revenue, Northeastern University,
Series E, MBIA Insured, 6.55% due
10/01/22.......................... 500,000 544,295
Metropolitan Pier & Exposition
Authority, Illinois, Dedicated
State Tax Revenue, McCormick Place
Expansion Project, Series A, 7.25%
due 06/15/05...................... 250,000 288,415
Michigan State University Revenue,
Series A, 6.125% due 08/15/08..... 500,000 526,225
Mississippi Higher Education
Assistance Corp. Student Loan
Revenue, Series C, AMT, 6.05% due
09/01/07.......................... 950,000 981,663
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE> 16
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
Nevada Housing Division, Single
Family Mortgage, Series C, AMT,
6.60% due 04/01/14............... $ 1,000,000 $ 1,041,290
New York City, New York, Series F,
6% due 08/01/11.................. 500,000 512,585
New York City, New York, Series I,
5.875% due 03/15/14.............. 500,000 504,100
New York City, New York, Series L,
5.75% due 08/01/12............... 500,000 500,835
New York City, New York, Municipal
Water Finance Authority, Water &
Sewer System Revenue, Series B,
FGIC Insured, 7.625% due
06/15/17......................... 125,000 131,279
New York State Dormitory Authority
Revenue, Pooled Capital Program,
FGIC Insured, 7.80% due
12/01/05......................... 150,000 160,532
New York State Urban Development
Corp. Revenue, Correctional
Facilities, Series A, 5.50% due
01/01/16......................... 1,000,000 959,660
Northern California Power Agency,
Public Power Revenue Refunding,
Hydroelectric Project 1, Series
A, MBIA Insured,
6.25% due 07/01/12............... 750,000 801,383
Red River Authority, Texas,
Pollution Control Revenue,
Hoechst Celanese Corp. Project,
AMT,
6.875% due 04/01/17.............. 1,500,000 1,611,705
Sacramento, California, Municipal
Utility District Electric Revenue
Refunding, Series Z, FGIC
Insured,
6.45% due 07/01/10............... 600,000 644,910
Springfield, Illinois, General
Obligation,
6.30% due 12/01/13............... 100,000 104,826
Superior, Wisconsin, Limited
Obligation Revenue Refunding,
Midwest Energy Resources, Series
E, FGIC Insured,
6.90% due 08/01/21............... 500,000 590,545
Tacoma, Washington, Electric
System Revenue, 7.50% due
01/01/12......................... 100,000 107,590
Tallassee, Alabama, Industrial
Development Board Revenue
Refunding, Dow United
Technologies Corp., Series B,
6.10% due 08/01/14............... 1,000,000 1,043,270
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 1,056,970
Tulsa, Okahama, Airport
Transportation Revenue, American
Airlines, Inc., AMT,
7.375% due 12/01/20.............. 2,000,000 2,149,720
University of Maryland, System
Auxiliary Facility and Tuition
Revenue, Series A,
6.30% due 02/01/10............... 500,000 536,620
Utah State Board of Regents
Student Loan Revenue, Series N,
AMT, AMBAC Insured, 5.90% due
11/01/07......................... 1,000,000 1,051,260
Vallejo, California, Revenue,
Water Improvement Project, Series
B, FGIC Insured, 6.50% due
11/01/14......................... 1,000,000 1,127,710
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
Washington State Public Power
Supply System Refunding Revenue,
Nuclear Project 1 Revenue
Pre-Refunded, Series A, 7.50% due
07/01/15.......................... $ 155,000 $ 167,767
Nuclear Project 1 Revenue
Un-Refunded, Series A, 7.50% due
07/01/15........................ 105,000 113,649
Nuclear Project 2 Revenue
Refunding, Series A, 7.25% due
07/01/06........................ 500,000 572,635
Nuclear Project 2 Revenue
Refunding, Series B, 7% due
07/01/12........................ 140,000 153,048
Nuclear Project 3 Revenue
Refunding, Series B, 7.20% due
07/01/99........................ 250,000 262,958
Wayne Charter County, Michigan,
Airport Revenue Sub. Lien, Detroit
Metro Airport, Series A, MBIA
Insured,
6.50% due 12/01/11................ 500,000 550,410
West Virginia School Building
Authority Revenue, Series A, MBIA
Insured,
7.25% due 07/01/15................ 50,000 55,008
Westminster, Colorado, Sales & Use
Tax Refunding Revenue, Series A,
FGIC Insured, 6.25% due
12/01/12.......................... 1,000,000 1,084,790
Wisconsin State Health and
Educational Facilities Authority
Revenue, Aurora Medical Group,
Inc. Project, FSA Insured, 6% due
11/15/10.......................... 1,000,000 1,076,350
----------
Total Bonds (cost: $46,003,396) 48,760,795
----------
VARIABLE RATE DEMAND NOTES* - 4.57%
Grapevine, Texas, Industrial
Development Corp., American
Airlines, Series A1,
4.10% due 12/01/24................ 100,000 100,000
Los Angeles, Regional Airports
Improvement Corp. Lease Revenue,
American Airlines-LAX,
Series E, 4.10% due 12/01/24...... 200,000 200,000
4.10% due 12/01/25................ 600,000 600,000
Los Angeles International Airport,
AMT,
4.15% due 12/01/25................ 100,000 100,000
Phenix City, Alabama, Industrial
Development Board Environmental
Improvement Revenue, AMT,
4.15% due 06/01/28................ 1,300,000 1,300,000
----------
Total Variable Rate Demand Notes (cost: $2,300,000) 2,300,000
----------
TOTAL SECURITIES (COST: $48,303,396) - 101.57% 51,060,795
OTHER ASSETS AND LIABILITIES, NET - (1.57)% (791,394)
----------
NET ASSETS - 100.00% $ 50,269,401
==========
Atlas U.S. Government and Mortgage Securities Fund
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
U.S. GOVERNMENT AGENCIES - 99.18%
Federal Home Loan Mortgage Corp.,
7.00% due 2023-2027............... $ 9,925,305 $ 9,749,896
7.50% due 2023-2024............... 19,465,725 19,636,288
8.00% due 2024-2026............... 13,955,690 14,312,815
</TABLE>
15
<PAGE> 17
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas U.S. Government and
Mortgage Securities Fund (continued)
- --------------------------------------------------------------
value
face amount (note 1)
------------ ----------
<S> <C> <C>
8.50% due 2017-2026.............. $ 4,210,220 $ 4,394,819
9.00% due 2017-2024.............. 6,662,784 7,086,039
9.50% due 2016-2021.............. 1,473,081 1,583,477
10.00% due 2015-2020............. 135,450 148,081
10.50% due 2018-2020............. 97,791 107,998
Federal National Mortgage
Association 6.50% due
2023-2026........................ 880,452 843,172
7.00% due 2025-2026.............. 18,085,106 17,738,605
7.50% due 2026-2027.............. 31,951,981 32,024,461
8.00% due 2024-2026.............. 72,062,481 73,714,127
8.50% due 2014-2027.............. 11,010,594 11,446,987
9.00% due 2021-2025.............. 7,700,593 8,150,774
9.50% due 2020................... 56,720 60,962
Government National Mortgage
Association 7.50% due
2022-2024........................ 7,589,868 7,653,923
8.00% due 2023-2025.............. 2,670,535 2,742,294
8.50% due 2016-2020.............. 107,424 113,236
----------
Total U.S. Government Agencies (cost: $209,038,579) 211,507,954
----------
SHORT-TERM INVESTMENTS - 17.01%
6.02% FNMA Floating Collateralized
Mortgage Obligation due 1998..... 237,540 237,984
6.12% FNMA Floating Collateralized
Mortgage Obligation due 1998..... 288,663 289,292
6.20% FHLMC Floating
Collateralized Mortgage
Obligation due 1999.............. 480,113 481,313
6.32% FNMA Floating Collateralized
Mortgage Obligation due 1999..... 606,057 609,845
Repurchase Agreement dated June 9,
1997 with Smith Barney, Inc.,
effective yield of 5.55%, due
July 14, 1997 with respect to
$19,176,934 FNMAs, 6.00%,
February 1, 2009 with a value of
$18,397,871 (g).................. 18,000,000 18,052,725
Repurchase Agreement dated June
30, 1997 with UBS Securities LLC,
effective yield of 6.125%, due
July 1, 1997 with respect to
$16,349,718 FNMAs, 6.521%,
September 1, 2026 with a value of
$16,932,177...................... 16,600,000 16,602,824
----------
Total Short-Term Investments (cost: $36,270,923) 36,273,983
----------
TOTAL SECURITIES (COST: $245,309,502) - 116.19% 247,781,937
OTHER ASSETS AND LIABILITIES, NET - (16.19)% (34,518,878)
----------
NET ASSETS - 100.00% $213,263,059
==========
<CAPTION>
Atlas Strategic Income Fund
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
<S> <C> <C>
CERTIFICATES OF DEPOSIT - .42%
Standard Charted Bank, London, CD,
8.04% due 12/17/97(l) (KRW)...... $ 100,000 $ 99,851
8.63% due 06/30/98(l) (KRW)...... 50,000 50,000
----------
Total Certificates of Deposit (cost: $150,000) 149,851
----------
MORTGAGE-BACKED OBLIGATIONS - 14.39%
Commercial - 1.58%
CS First Boston Mortgage
Securities Corp., Series 1997-C1,
Cl. F, 7.50% due 06/20/13
(a)(c)........................... 50,000 45,992
Cl. G, 7.50% due 06/20/14
(a)(c)........................... 50,000 44,078
Cl. H, 7.50% due 08/20/14
(a)(c)........................... 30,000 21,263
First Chicago/Lennar Trust,
Commercial Collateral Strip Interest,
Series 1997-CHL1, Cl. D, 8.13%
due 05/29/08 (a)(c).............. 100,000 95,516
Series 1997-CHL1, Cl. E, 8.13%
due 02/28/11 (a)(c).............. 150,000 113,836
Morgan Stanley Capital I, Inc.,
Commercial Sub. Bonds, Series
1997-HF1, Cl. F, 6.86% due
02/15/10 (a)(c)................... 50,000 44,813
Salomon Brothers Mortgage
Securities VII, Series 1996-C1,
Cl. F, 9.18% due 01/20/28......... 250,000 194,375
Government Agency - 11.87%
Federal Home Loan Mortgage Corp.,
Interest-Only Stripped
Mtg.-Backed Security, Trust 177,
7% due 07/01/26 (h).............. 816,397 290,335
Series 151, Cl. F, 9% due
05/15/21......................... 500,000 536,560
Federal National Mortgage Assn.,
Global Debt Issuance Program,
6.50% Sr. Unsub. Notes due
07/10/02 (AUD)................... 265,000 199,216
Global Debt Program, 7.25% Notes
due 06/20/02 (NZD)............... 80,000 54,217
7% due 07/01/26.................. 888,041 871,393
7.50% due 07/01/27 (j)........... 2,250,000 2,254,928
Multi-Family - .94%
Criimi Mae, Inc., Trust I, Series
1996-C1, Cl. A2, 7.56% due
06/30/33.......................... 100,000 99,580
Mortgage Capital Funding, Inc.,
Multi-family Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl.
G, 7.15% due 06/15/06............. 250,000 232,813
----------
Total Mortgage-Backed Obligations (cost:
$5,031,456) 5,098,915
----------
U.S. GOVERNMENT OBLIGATIONS - 19.80%
U.S. Treasury Bonds:
10.75% due 05/15/03.............. 87,000 105,107
13.75% due 08/15/04.............. 255,000 358,833
8.125% due 08/15/21 (n).......... 474,000 542,730
6% due 02/15/26.................. 90,000 80,522
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE> 18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
<S> <C> <C>
U.S. Treasury Notes:
6.375% due 05/15/99.............. $ 393,000 $ 394,965
7.50% due 10/31/99 (n)........... 3,675,000 3,780,656
7.50% due 05/15/02............... 205,000 214,481
6.25% due 02/15/03............... 1,040,000 1,031,874
5.875% due 02/15/04.............. 105,000 101,719
7.25% due 05/15/04............... 390,000 406,453
----------
Total U.S. Government Obligations (cost:
$6,963,596) 7,017,340
----------
FOREIGN GOVERNMENT OBLIGATIONS - 24.65%
Argentina - 2.27%
Argentina (Republic of),
Bonds, Bonos de Consolidation de
Deudas, Series Previs 1, 3.2424%
due 04/01/01 (c) (ARP)........... 25,000 30,219
Bonds, Bonos de Consolidacion de
Deudas, Series Previs 2, 5.6953%
due 04/01/01 (c)................. 29,376 34,921
Bonds, 5% due 12/20/02 (JPY)..... 10,000,000 91,292
Notes, 11.75% due 02/12/07
(ARP)............................ 250,000 277,813
Notes, 11.75% due 02/12/07 (a)
(ARP)............................ 90,000 99,900
Past Due Interest Global Bearer
Bonds, 6.75% Debentures due
03/31/05 (c)..................... 184,300 173,242
Unsec. Unsub. Notes, 5.50% due
03/27/01 (JPY)................... 10,000,000 96,854
Australia - 2.29%
Australia (Commonwealth of)
Bonds, Series 302, 9.75% Bonds
due 03/15/02 (AUD)............... 20,000 16,957
Series 1002, 10% Bonds due
10/15/02 (AUD)................... 200,000 173,975
Queensland Treasury Corp.,
Exchangeable Gtd. Notes,
8% Global Notes due 08/14/01
(AUD)............................ 250,000 200,269
10.50% Global Debentures due
05/15/03 (AUD)................... 245,000 218,524
Treasury Corp. of Victoria Gtd.
Bonds,
12.50% due 10/15/03 (AUD)........ 21,000 20,309
Series 999, 10.25% due 09/15/99
(AUD)............................ 220,000 182,303
Brazil - 1.63%
Brazil (Federal Republic of),
Eligible Interest Bonds, 6.875%
Debentures due 04/15/06 (c)...... 420,750 388,142
Exit Bonds, 6% Debentures due
09/15/13......................... 250,000 190,117
Bulgaria - .20%
Bulgaria (Republic of),
Past Due Interest Bonds, 6.5625%
Debentures due 07/28/11 (c)...... 100,000 72,063
Canada - 2.21%
Canada (Government of) Bonds,
9.75% Debentures due 06/01/01
(CAD)............................ 360,000 299,516
9.75% Debentures due 12/01/01
(CAD)............................ 160,000 134,118
Series A-33, 11.50% Debentures
due 09/01/00 (CAD)............... 175,000 149,259
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
<S> <C> <C>
Series A-79, 8.75% Debentures due
12/01/05 (CAD)................... $ 185,000 $ 155,860
NAV Canada Bonds, Series 97-2,
7.56% Bonds due 03/01/27 (CAD)... 60,000 45,649
Finland - 1.91%
Finland (Republic of) Bonds,
9.50% due 03/15/04 (FIM)......... 2,000,000 467,508
7.25% due 04/18/06 (FIM)......... 1,000,000 208,803
Germany - 1.75%
Germany (Republic of) Bonds,
Series 94, 6.25% due 01/04/24
(DEM)............................ 605,000 337,786
Series 95, 6.875% due 05/12/05
(DEM)............................ 450,000 282,003
Great Britain - 2.18%
United Kingdom Treasury,
Bonds, 10% due 09/08/03 (GBP).... 255,000 484,873
Notes, 13% due 07/14/00 (GBP).... 50,000 96,529
Notes, 12.50% due 11/21/05
(GBP)............................ 90,000 190,042
Italy - 1.93%
Italy (Republic of) Treasury
Bonds, Buoni del Tesoro
Poliennali, 10.50% due 07/15/98
(ITL)............................ 65,000,000 39,780
10.50% due 04/01/00 (ITL)........ 110,000,000 71,280
10.50% due 07/15/00 (ITL)........ 130,000,000 85,410
9.50% due 02/01/01 (ITL)......... 230,000,000 149,040
9.50% due 05/01/01 (ITL)......... 435,000,000 283,185
9% due 10/01/03 (ITL)............ 85,000,000 55,930
Mexico - 1.87%
Bonos de la Tesoreia de la
Federacion, Zero Coupon, 23.10%
T-Bills due 02/04/98 (f) (MXP)... 3,333,780 368,019
United Mexican States Bonds,
10.375% due 01/29/03 (DEM)....... 25,000 16,492
11.50% Global Bonds due
05/15/26......................... 75,000 85,249
Series B, 6.25% Sec. Debentures
due 12/31/19..................... 250,000 193,588
New Zealand - 1.04%
New Zealand (Government of), 8%
due 11/15/06 (NZD)............... 170,000 123,430
Bonds, 10% due 07/15/97 (NZD).... 73,000 49,508
Bonds, 10% due 03/15/02 (NZD).... 120,000 91,684
Index Linked Bonds, 4.50% due
02/15/16 (Inflation Adjusted
Rate) (NZD)...................... 145,000 102,438
Norway - .21%
Norwegian Government, Gtd. Bonds,
9.50% due 10/31/02 (NOK)......... 440,000 72,644
Panama - .31%
Panama (Republic of), Past Due
Interest, 20 years, 6.5625%
Debentures due 07/17/16 (c)...... 126,758 111,071
Philippines - .08%
Philippines (Republic of), 8.60%
Unsec. Bonds due 06/15/27........ 30,000 29,850
Poland - .45%
Poland (Republic of),
16% Bonds due 06/12/98 (PLZ)..... 150,000 44,671
16% Bonds due 02/12/99 (PLZ)..... 400,000 112,935
</TABLE>
17
<PAGE> 19
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
<S> <C> <C>
Russia - .79%
Russia (Government of) Principal
Loans When-Issued Bonds, 0%
Sinking Fund Debentures due
12/29/49 (j)..................... $ 250,000 $ 99,470
City of St. Petersburg, 9.50% Sr.
Unsec. Unsub. Notes due 06/18/02
(a).............................. 100,000 99,536
Ministry Finance Russia, 10%
Unsec. Unsub. Notes due 06/26/07
(a).............................. 80,000 79,800
South Africa - .81%
South Africa (Republic of) Bonds,
Series 162, 12.50% Bonds due
01/15/02 (ZAR)................... 275,000 57,085
Series 184, 12.50% due 12/21/06
(ZAR)............................ 450,000 89,218
Telkom South Africa, Ltd. Bonds,
Series TK05, 12% Bonds due
03/31/98 (ZAR)................... 650,000 140,009
Spain - 2.07% Spain (Kingdom of),
Debentures, Bonos y Obligacion
del Estado, 10.10% due 02/28/01
(ESP)............................ 18,000,000 141,804
Debentures, Bonos y Obligacion
del Estado, 10.50% due 10/30/03
(ESP)............................ 5,530,000 46,651
Gtd. Bonds, Bonos y Obligacion
del Estado, 12.25% due 03/25/00
(ESP)............................ 49,000,000 391,804
Gtd. Bonds, Bonos y Obligacion
del Estado, 10.30% due 06/15/02
(ESP)............................ 18,650,000 152,016
Venezuela - .65%
Venezuela (Republic of), Discount
Bonds, Series DL, 6.75%
Debentures due 12/18/07 (c)...... 250,000 230,943
----------
Total Foreign Government Obligations (cost:
$8,726,236) 8,733,386
----------
LOAN PARTICIPATIONS - .35%
Hellenic Republic Bonds, 11.10%
due 06/30/00 (c) GRD............. 18,536,000 69,425
Morocco (Kingdom of) Loan
Participation Agreement, Tranche
A, 6.8125% due 01/01/09 (c)...... 59,000 53,948
----------
Total Loan Participations (cost: $122,846) 123,373
----------
CORPORATE BONDS AND NOTES - 38.17%
Advertisement - .28%
Outdoor Systems, Inc., 8.875% Sr.
Sub. Notes due 06/15/07 (a)...... 100,000 97,747
Air Travel - .35%
Atlas Air, Inc., 12.25%
Pass-Through Certificates due
12/01/02 (g)..................... 50,000 56,642
Continental Airlines, Inc., 9.50%
Sr. Unsec. Notes due 12/15/01.... 40,000 41,800
Northwest Airlines, Inc., 8.70%
Unsec. Notes due 03/15/07........ 25,000 25,712
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
Apparel & Textiles - 1.15%
CMI Industries, Inc., 9.50% Sr.
Sub. Notes due 10/01/03 (g)...... $ 20,000 $ 20,150
Indorayon International Finance
Co. BV, 10% Gtd. Unsec. Unsub.
Notes due 03/29/01 (g)........... 100,000 100,812
Polysindo International Finance
Co. BV, 11.375% Gtd. Sec. Notes
due 06/15/06..................... 50,000 55,125
Synthetic Industries, Inc., 9.25%
Sr. Sub. Notes due 02/15/07
(a).............................. 20,000 20,400
Tultex Corp., 9.625% Sr. Notes
due 04/15/07 (a)................. 100,000 106,000
Unifrax Investment Corp., 10.50%
Sr. Notes due 11/01/03 (g)....... 50,000 51,500
William Carter Co., 10.375% Sr.
Sub. Notes due 12/01/06 (a)...... 50,000 52,375
Automotive - 1.65%
Collins & Aikman Products Co.,
11.50% Gtd. Sr. Sub. Notes due
04/15/06......................... 150,000 170,625
Hayes Wheels International, Inc.,
11% Unsec. Sr. Sub. Notes due
07/15/06........................ 100,000 109,750
9.125% Sr. Sub. Notes due
07/15/07 (a)(g)................. 50,000 50,015
Oxford Automotive, Inc., 10.125%
Sr. Sub. Notes due 06/15/07
(a).............................. 50,000 49,925
Titan Wheel International, Inc.,
8.75% Sr. Sub. Notes due
04/01/07......................... 100,000 102,000
Western Star Truck Holdings Ltd.,
8.75% Sr. Unsec. Notes due
05/01/07 (a)..................... 100,000 102,500
Banks - 1.63%
BanAmex, 11% Cv. Jr. Sub. Notes
due 07/15/03..................... 20,000 21,350
Ongko International Finance Co.
BV, 10.50% Gtd. Notes due
03/29/04 (a)..................... 100,000 103,000
PT Bank Tabungan Negara, 6.4375%
Notes due 10/28/97 (c) (IDR)..... 1,000,000,000 394,684
Shoshone Partners Trust, 8% Sr.
Notes due 05/31/02 (a)(g)........ 60,000 60,064
Broadcast, Radio & TV - 1.65%
Azteca Holdings SA, 11% Sr. Sec.
Notes due 06/15/02 (a)........... 35,000 35,350
Capstar Broadcasting, 9.25% Sr.
Sub. Notes due 07/01/07 (a)...... 150,000 145,125
Chancellor Radio Broadcasting
Co., 8.75% Sr. Sub. Notes due
06/15/07 (a)..................... 50,000 49,422
Paxson Communications Corp.,
11.625% Sr. Sub. Notes due
10/01/02......................... 100,000 108,250
TV Azteca SA de CV, Series A,
10.125% Sr. Notes due 02/15/04
(a).............................. 100,000 102,125
Young Broadcasting, Inc., 8.75%
Sr. Sub. Debentures due 06/15/07
(a)............................. 100,000 95,250
Series B, 9% Sr. Sub. Notes due
01/15/06........................ 50,000 49,000
Building & Construction - .29%
J. Ray McDermott, SA, 9.375% Sr.
Sub. Notes due 07/15/06.......... 100,000 102,750
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE> 20
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
<S> <C> <C>
Building Materials - .46%
Falcon Building Products, Inc.,
9.50% Sr. Sub. Notes due
06/15/07 (a).................... $ 50,000 $ 49,750
0%/10.50% Sr. Discount Notes due
06/15/07 (a)(d)................. 100,000 59,000
Triangle Pacific Corp., 10.50%
Sr. Notes due 08/01/03........... 50,000 53,750
Cable Television - 2.09%
Bell Cablemedia PLC, 0%/11.875%
Sr. Discount Notes due 09/15/05
(d).............................. 150,000 125,250
Cablevision Systems Corp., 10.50%
Sr. Sub. Debentures due
05/15/16......................... 50,000 55,250
EchoStar Communications Corp.,
0%/12.875% Sr. Discount Notes due
06/01/04 (d)..................... 100,000 84,000
EchoStar DBS Corp., 12.50% Sr.
Sec. Notes due 07/01/02 (a)...... 100,000 99,000
EchoStar Satellite Broadcasting
Corp., 0%/13.125% Sr. Sec.
Discount Notes due 03/15/04
(d).............................. 50,000 35,625
Helicon Group LP/Helicon Capital
Corp., Series B, 11% Sr. Sec.
Notes due 11/01/03............... 100,000 104,000
Multicanal SA, 10.50% Unsec.
Bonds due 02/01/07 (a)........... 100,000 107,750
OpTel, Inc., Units (each unit
consists of $1,000 principal
amount of 13% Sr. Notes due
02/15/05 and one warrant to
purchase one share of non-voting
common stock) (a)(k)............. 85,000 81,175
TeleWest Communications PLC,
0%/11% Sr. Discount Debentures
due 10/01/07 (d)................. 65,000 46,800
Chemicals & Allied Products - .52%
Pioneer Americas Acquisition,
9.25% Sr. Sec. Notes due 06/15/07
(a).............................. 75,000 73,945
Sterling Chemicals, Inc., 11.75%
Sr. Unsec. Sub. Notes due
08/15/06......................... 100,000 111,159
Commercial Services - .44%
Kindercare Learning Centers,
Inc.,
9.50% Sr. Sub. Notes due 02/15/09
(a).............................. 50,000 48,750
Neodata Services, Inc., Series B,
12% Sr. Notes due 05/01/03....... 100,000 107,500
Computers - .30%
Unisys Corp., 11.75% Sr. Notes
due 10/15/04..................... 100,000 108,000
Conglomerates - .05%
Empresas ICA Sociedad
Controladora SA de CV, Series
REGS, 11.875% Notes due
05/30/01......................... 10,000 11,189
Mechala Group Jamaica Ltd.,
12.75% Bonds due 12/30/99 (a).... 7,000 7,368
Consumer Products - 2.18%
Coleman Escrow Corp., Zero Coupon
11.125% Sr. Discount Notes due
05/15/01 (a)(f).................. 100,000 63,250
Coleman Holdings, Inc., Zero
Coupon Sr. Sec. Discount Notes,
Series B, 12.78% due 5/27/98
(f)(g)........................... 100,000 92,375
Fletcher Challenge Ltd.,
10.75% Cv. Sub. Notes due
12/15/97 (NZD)................... 130,000 89,410
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
14.50% Cv. Sub. Notes due
09/30/00 (NZD).................. $ 185,000 $ 147,769
10% Cv. Unsec. Sub. Notes due
04/30/05 (NZD).................. 5,000 3,675
Icon Fitness Corp., Series B,
0%/14% Sr. Sec. Discount Notes
due 11/15/06 (d)(g).............. 200,000 108,500
Iron Mountain, Inc., 10.125% Sr.
Sub. Notes due 10/01/06.......... 50,000 53,250
Revlon Worldwide Corp., Zero
Coupon 11.16% Sr. Sec. Discount
Notes due 03/15/01 (a)(f)........ 150,000 101,625
Samsonite Corp., 11.125% Sr. Sub.
Notes due 07/15/05 (g)........... 67,000 74,477
TAG Heuer International SA, 12%
Sr. Sub. Notes due 12/15/05...... 33,000 37,950
Diversified Financial - .34%
General Electric Capital
Services, 11.625% Notes due
10/29/97 (SKK)................... 4,300,000 121,459
Diversified Media - .97%
Katz Media Corp., 10.50% Sr. Sub.
Notes due 01/15/07 (a)........... 100,000 98,000
Lamar Advertising Co., 9.625%
Unsec. Sr. Sub. Notes due
12/01/06......................... 100,000 102,500
TCI Satellite Entertainment,
Inc.,
10.875% Sr. Sub. Notes due
02/15/07 (a).................... 25,000 25,125
0%/12.25% Sr. Discount Notes due
02/15/07 (a)(d)................. 25,000 14,750
Universal Outdoor, Inc., 9.75%
Sr. Sub. Notes due 10/15/06...... 100,000 103,500
Electrical Utilities - 1.41%
CalEnergy Co., Inc., 9.50% Sr.
Notes due 09/15/06 (a)........... 100,000 106,750
Calpine Corp., 10.50% Sr. Notes
due 05/15/06..................... 100,000 108,500
Central Termica Guemes SA, 12%
Unsec. Bonds due 11/26/01
(a)(g)........................... 50,000 52,250
New Zealand Electric Corp., 10%
Debentures due 10/15/01 (NZD).... 310,000 231,200
Electronics - .57%
Tracor, Inc., 8.50% Sr. Sub.
Notes due 03/01/07 (a)........... 100,000 100,750
Wavetek Corp., 10.125% Sr. Sub.
Notes due 06/15/07 (a)........... 100,000 102,625
Energy Service & Producers - .89%
Clark R&M Holdings/Trizec Hahn
Corp., Series A, Zero Coupon
10.553% Sr. Sec. Notes due
02/15/00 (f)..................... 150,000 113,625
Energy Corp. of America, 9.50%
Sr. Sub. Notes due 05/15/07
(a).............................. 100,000 99,000
Mariner Energy, Inc., Series B,
10.50% Sr. Sub. Notes due
08/01/06......................... 100,000 104,000
Environmental - .48%
Allied Waste Industries, Inc.,
10.25% Sr. Sub. Notes due
12/01/06 (a).................... 100,000 107,000
0%/11.30% Sr. Discount Notes due
06/01/07 (a).................... 100,000 62,500
Financial - 1.95%
Aames Financial Corp., 9.125% Sr.
Notes due 11/01/03............... 100,000 102,000
</TABLE>
19
<PAGE> 21
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
<S> <C> <C>
Americredit Corp., 9.25% Sr.
Notes due 02/01/04 (a)........... $ 100,000 $ 98,000
AMRESCO, Inc., Series 97-A, 10%
Sr. Sub. Notes due 03/15/04...... 75,000 76,125
Bancomext Trust Division, Series
REGS, 11.25% due 05/30/06........ 50,000 56,375
BankUnited Financial Corp.,
10.25% due 12/31/26 (a).......... 100,000 98,750
Financiera Energy Nacional,
9.375% Unsub. Unsec. Bonds due
06/15/06......................... 100,000 106,938
Olympic Financial Ltd., Units
(each unit consists of $1,000
principal amount of 11.50% Sr.
Notes due 03/15/07 and one
warrant to purchase 6.84 ordinary
share of common stock @ $11 per
share) (k)....................... 100,000 102,750
Polytama International Finance
BV, 11.25% Sec. Notes due
06/15/07......................... 50,000 51,234
Food & Beverages - .63%
Doane Products Co., 10.625% Sr.
Notes due 03/01/06 (g)........... 100,000 105,500
Foodbrands America, Inc., 10.75%
Sr. Sub. Notes due 05/15/06...... 100,000 116,000
Gas Utilities - .15%
AmeriGas Partners, L.P., 10.125%
Sr. Notes due 04/15/07 (a)....... 50,000 52,750
Health Care/Supplies &
Services - 1.37%
Fresenius Medical Care AG, 9%
Unsec. Trust Preferred due
12/01/06......................... 120,000 124,500
Genesis Health Ventures, Inc.,
9.25% Sr. Sub. Notes due
10/01/06......................... 90,000 92,700
Integrated Health Services, 9.50%
Sr. Sub. Notes due 09/15/07
(a).............................. 100,000 102,219
Magellan Health Services, Inc.,
Series A, 11.25% Sr. Sub. Notes
due 04/15/04..................... 100,000 111,500
Multicare Cos., Inc. (The),
12.50% Sr. Sub. Notes due
07/01/02......................... 50,000 54,128
Homebuilders/Real Estate - .60%
Saul (B.F.) Real Estate
Investment Trust, Series B,
11.625% Sr. Sec. Notes due
04/01/02......................... 100,000 106,000
Standard Pacific Corp., 8.50% Sr.
Notes due 06/15/07............... 80,000 79,720
U.S. Home Corp., 9.75% Sr. Notes
due 06/15/03..................... 25,000 26,000
Hotel/Gaming - 1.47%
Boyd Gaming Corp., 9.25% Sr.
Notes due 10/01/03............... 100,000 100,000
Grand Casinos, Inc., 10.125% Gtd.
First Mtg. Notes due 12/01/03.... 20,000 20,850
Horseshoe Gaming LLC, 9.375% Sr.
Sub. Notes due 06/15/07 (a)...... 50,000 50,375
Rio Hotel and Casino, Inc., 9.50%
Gtd. Sr. Sub. Notes due 04/15/07
(a).............................. 100,000 102,750
Showboat Marina Casino
Partnership/Showboat Marina
Finance Corp., Series B, 13.50%
First Mtg. Notes due 03/15/03.... 150,000 171,750
Trump Atlantic City
Associates/Trump Atlantic City
Funding, Inc., 11.25% First Mtg.
Notes due 05/01/06............... 75,000 73,500
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
Industrial - .79%
Consorcio Ecuatoriano, 14% Notes
due 05/01/02 (a)(g).............. $ 35,000 $ 37,362
DI Industries, Inc., 8.875% Sr.
Notes due 07/01/07............... 25,000 24,750
Four M Corp., 12% Sr. Sec. Notes
due 06/01/06 (a)................. 25,000 25,750
International Wire Group, Inc.,
Series B, 11.75% Sr. Sub. Notes
due 06/01/05 (a)(g).............. 65,000 70,688
Panda Global Energy Co., 12.50%
Sr. Notes due 04/15/04 (a)....... 100,000 97,500
Vitro SA., Series P96U, 13% Notes
due 12/07/99 (MXP)............... 88,000 22,710
Insurance - .29%
Veritas Holdings, Inc., 9.625%
Sr. Notes due 12/15/03 (a)....... 100,000 103,000
Manufacturing - .44%
Mettler-Toledo Holding, Inc.,
9.75% Unsec. Sr. Sub. Notes due
10/01/06......................... 150,000 157,500
Metals/Mining - .42%
Kaiser Aluminum & Chemical Corp.,
12.75% Sr. Sub. Notes due
02/01/03......................... 50,000 54,500
Royal Oak Mines, Inc., Series B,
11% Sr. Sub. Notes due
08/15/06......................... 100,000 95,500
Oil & Gas - 1.52%
Belden & Blake Energy Co. LP,
9.875% Sr. Sub. Notes due
06/15/07 (a)..................... 100,000 99,750
Chesapeake Energy Corp., 12% Sr.
Notes due 03/01/01............... 125,000 132,500
Forcenergy, Inc., 8.50% Sr. Sub.
Notes due 02/15/07 (a).......... 50,000 48,875
9.50% Unsec. Sr. Sub. Notes due
11/01/06........................ 100,000 103,500
Parker Drilling Co., Series B,
9.75% Sr. Notes due 11/15/06..... 100,000 105,250
Wiser Oil Co., 9.50% Sr. Sub.
Notes due 05/15/07 (a)........... 50,000 50,000
Paper & Forest Products - 1.94%
APP International Finance Co. BV,
11.75% Gtd. Sec. Notes due
10/01/05......................... 75,000 82,780
Asia Pulp & Paper International
Finance Co., Zero Coupon 8.33%
due 10/24/97 (f)................. 250,000 96,295
Florida Coast Paper Co. LLC,
Series B, 12.75% First Mtg. Notes
due 06/01/03..................... 60,000 61,950
IVEX Holdings Corp., Series B,
0%/13.25% Sr. Discount Debentures
due 03/15/05 (d)................. 100,000 80,500
Repap New Brunswick, Inc., 9.125%
First Priority Sr. Sec. Notes due
07/15/00 (c)..................... 100,000 99,000
Repap Wisconsin, Inc., 9.25%
First Priority Sr. Sec. Notes due
02/01/02......................... 100,000 101,250
SD Warren Co., Series B, 12% Sr.
Sub. Notes due 12/15/04.......... 150,000 166,875
Printing, Publishing & Allied
Products - .29%
Hollinger International
Publishing, Inc., 9.25% Gtd. Sr.
Sub. Notes due 03/15/07.......... 100,000 102,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE> 22
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
<S> <C> <C>
Restaurants - .85%
Ameriking, Inc., 10.75% Sr.
Unsec. Notes due 12/01/06........ $ 150,000 $ 156,830
Apple South, Inc., 9.75% Sr.
Notes due 06/01/06............... 50,000 52,500
Carrols Corp., 11.50% Sr. Notes
due 08/15/03..................... 85,000 90,950
Security Services - .43%
Borg-Warner Security Corp.,
9.625% Sr. Sub. Notes due
03/15/07 (a)..................... 50,000 50,375
Protection One, Inc., 6.75% Cv.
Gtd. Sr. Sub. Notes due
09/15/03......................... 100,000 101,375
Specialty Retailing - .07%
Stage Stores, Inc., 8.50% Co.
Gtd. Notes due 07/15/05 (a)...... 25,000 25,055
Steel - .44%
AK Steel Corp., 9.125% Sr. Notes
due 12/15/06..................... 100,000 102,750
Bar Technologies, Inc., 13.50%
Sr. Sec. Notes due 04/01/01...... 50,000 51,625
Supermarkets - 1.04%
Grand Union Co. (The), 12% Sr.
Notes due 09/01/04............... 25,000 18,500
Jitney-Jungle Stores of America,
Inc., 12% Gtd. Sr. Notes due
03/01/06......................... 125,000 139,219
Ralphs Grocery Co., 10.45% Sr.
Notes due 06/15/04.............. 50,000 53,688
11% Sr. Sub. Notes due
06/15/05........................ 25,000 27,125
Series A, 11% Sr. Sub. Notes due
06/15/05 (a).................... 75,000 81,375
Randall's Food Markets, 9.375%
Sr. Sub. Notes due 07/01/07
(a).............................. 50,000 49,719
Telecommunications - 4.92%
Allbritton Communications Co.,
11.50% Sr. Sub. Debentures due
08/15/04......................... 75,000 79,125
Brooks Fiber Properties, Inc.,
0%/10.875% Sr. Discount Notes
due 03/01/06 (d)................ 50,000 34,062
0%/11.875% Sr. Discount Notes
due 11/01/06 (d)................ 75,000 48,750
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 32,500
Comunicacion Celular SA,
0%/13.125% Sr. Deferred Coupon
Bonds due 11/15/03 (d)........... 100,000 71,250
Diamond Cable Communications PLC,
0%/11.75% Sr. Discount Notes due
12/15/05 (d)..................... 50,000 33,750
Globalstar LP/Globalstar Capital
Corp., 11.25% Sr. Notes due
06/15/04 (a)..................... 50,000 47,125
International CableTel, Inc., 10%
Sr. Notes due 02/15/07 (a)....... 100,000 101,750
McLeodUSA, Inc., 0%/10.50% Sr.
Discount Notes due 03/01/07
(a)(d)........................... 50,000 31,875
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
Metrocall, Inc., 10.375% Unsec.
Sr. Sub. Notes due 10/01/07...... $ 100,000 $ 91,500
MFS Communications Co., Inc.,
0%/9.375% Sr. Discount Notes due
01/15/04 (d)..................... 200,000 186,000
Millicom International Cellular
SA, 0%/13.50% Sr. Discount Notes
due 06/01/06 (d)................. 50,000 36,000
Occidente Y Caribe Celular SA,
Series B, 0%/14% Sr. Discount
Notes due 03/15/04 (d)(g)........ 100,000 75,000
Omnipoint Corp., Series A,
11.625% Sr. Notes due 08/15/06... 100,000 96,000
ORBCOMM Global LP/ORBCOMM Capital
Corp., Series B, 14% Sr. Notes
due 08/15/04..................... 100,000 101,000
PLD Telekom, Units (each unit
consists of $1,000 principal
amount of 0%/14% Sr. Discount
Notes due 06/01/04 and one
warrant to purchase 34 ordinary
shares) (a)(d)(g)(k)............. 50,000 42,250
PriCellular Wireless Corp.,
0%/14% Sr. Sub. Discount Notes
due 11/15/01 (d)................ 50,000 52,750
10.75% Sr. Notes due 11/01/04... 75,000 78,750
PTC International Finance BV,
0%/10.75% Unsec. Sub. Notes due
07/01/07 (a)(g).................. 28,000 17,238
Teleport Communications Group,
Inc., 0%/11.125% Sr. Discount
Notes due 07/01/07 (d).......... 200,000 144,750
9.875% Unsec. Sr. Notes due
07/01/06........................ 50,000 53,250
USA Mobile Communications, Inc.
II, 9.50% Sr. Notes due
02/01/04........................ 100,000 93,500
14% Sr. Notes due 11/01/04...... 100,000 110,500
Videotron Holdings PLC, 0%/11%
Sr. Discount Notes due 08/15/05
(d).............................. 100,000 83,500
Telephone Utilities - .09%
Telecomunicacoes Brasileiras SA,
11.4375% due 12/09/99 (c)........ 30,000 31,500
Transportation - .77% American
International Group, Inc., 11.70%
Unsec. Unsub. Bonds due 12/04/01
(ITL)............................ 40,000,000 28,120
Coach USA, Inc., 9.375% Sr. Sub.
Notes due 07/01/07 (a)........... 75,000 74,250
Transtar Holdings LP/Transtar
Capital Corp., Series B,
0%/13.375% Sr. Discount Notes due
12/15/03 (d)..................... 200,000 169,418
----------
Total Corporate Bonds and Notes (cost:
$13,252,237) 13,523,272
----------
PREFERRED STOCKS - 1.40%
American Radio Systems Corp.,
11.375% Cum. Exchangeable......... 735 77,918
El Paso Electric Co., Series A,
11.40% Cum. (i)................... 720 81,000
NEXTLINK Communications, Inc., 14%
Cum. (i).......................... 1,278 67,095
</TABLE>
21
<PAGE> 23
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
face amount,
shares or value
units(m) (note 1)
------------ ----------
<S> <C> <C>
Panamsat Corp., 12.75% Sr.
Preferred Exchangeable (i)........ 106 $ 129,718
Prime Retail, Inc., Series B,
8.50% Cv......................... 500 11,875
S.D. Warren Co., Series B, 14%
Cum. Exchangeable (b)............. 3,000 129,000
----------
Total Preferred Stocks (cost: $476,400) 496,606
----------
RIGHTS, WARRANTS AND
CERTIFICATES - .02%
Comunicacion Celular SA Wts., Exp.
11/03 (g)......................... 100 7,400
NEXTLINK Communications, Inc.
Wts., Exp. 02/09 (g).............. 1,235 0
----------
Total Rights, Warrants and Certificates (cost:
$7,500) 7,400
----------
STRUCTURED INSTRUMENTS - 4.10%
Bayerische Landesbank, New York
Branch CD, 10.30% due 03/16/98
(linked to Greek Drachma on
03/14/98)......................... $ 500,000 478,450
CS First Boston Corp., Zero Coupon
Russian Linked Notes,
12% due 12/30/97 (f)............. 50,000 47,324
14% due 01/20/98 (f)............. 100,000 93,348
ING Barings Securities, Inc., Zero
Coupon Czech Koruna Linked
Promissory Notes, 11.0217% due
11/17/97 (f) (CZK)................ 3,031,000 78,594
ING Barings Securities, Inc., Zero
Coupon Czech Koruna/U.S. Dollar
Linked Notes, 11.4063% due
03/04/98 (f)...................... 100,000 79,114
ING Barings Securities, Inc., Zero
Coupon South African Rand/U.S.
Dollar Linked Note, 16% due
03/18/98 (f)...................... 85,000 74,899
Salomon Brothers, Inc., Zero
Coupon Russian Linked Notes,
12% due 08/15/97 (f)............. 70,000 68,904
12% due 08/28/97 (f)............. 200,000 195,942
14% due 04/03/98 (f)............. 100,000 89,728
14.50% due 05/07/98 (f).......... 150,000 132,404
14.625% due 05/22/98 (f)......... 55,000 48,272
Salomon Brothers, Inc., Zero
Coupon Chilean Peso Linked Notes,
9.25% due 06/18/98 (f)........... 50,000 45,330
Union Bank of Switzerland, Zero
Coupon Russian GKO Linked/U.S.
Dollar Notes, 12.2782% due
10/15/97 (f)...................... 20,000 19,254
----------
Total Structured Instruments (cost: $1,516,417) 1,451,563
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------
Strike Contracts/Face Value
Date Price Subject to Call (note 1)
---- ------ ------------ ---------
<S> <C> <C> <C> <C>
CALL OPTIONS PURCHASED - .11%
US Treasury Bonds,
6.625% due 02/15/27
Call Option.......... 08/97 $95.9375 13,200 $ 39,600
---------
Total Call Options Purchased (cost: $23,616) 39,600
---------
SHORT-TERM SECURITIES - .37%
Triparty Repurchase Agreement
dated June 30, 1997 with
Prudential Securities, Inc.,
effective yield of 5.45%, due
July 1, 1997, collateralized by
FNMAs, 6.45%, April 23, 2001 with
a value of $135,547.............. 132,188
----------
Total Short-Term Securities (cost: $132,188) 132,188
----------
TOTAL INVESTMENTS (COST: $36,402,492) - 103.78% 36,773,494
OTHER ASSETS AND LIABILITIES, NET - (3.78)% (1,340,294)
----------
NET ASSETS - 100.00% $ 35,433,200
==========
</TABLE>
<TABLE>
<CAPTION>
Atlas Balanced Fund
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
COMMON STOCKS - 34.40%
Automotive - .72%
Ford Motor Co. .................. 4,000 $ 151,000
General Motors Corp. ............ 3,000 167,063
Banks - 13.05%
Banc One Corp. .................. 9,000 435,937
Bank of Boston Corp. ............ 5,000 360,312
BankAmerica Corp. ............... 9,000 581,062
Capital One Financial Corp. ..... 5,000 188,750
Chase Manhattan Corp. ........... 5,000 485,312
Citicorp......................... 4,000 482,250
Crestar Financial Corp. ......... 8,000 311,000
First Chicago NBD Corp. ......... 6,000 363,000
First Union Corp. ............... 6,875 635,938
Fleet Financial Group, Inc. ..... 5,000 316,250
Keycorp.......................... 4,000 223,500
Mellon Bank Corp. ............... 10,000 451,250
National City Corp. ............. 4,000 210,000
PNC Bank Corp. .................. 7,000 291,375
Signet Banking Corp. ............ 5,000 180,000
Summit Bancorp. ................. 6,000 300,750
Chemicals & Allied Products - .63%
Dexter Corp. .................... 6,000 192,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE> 24
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Dow Chemical Co. ................ 1,000 $ 87,125
Drugs and Health Care - 1.24%
American Home Products Corp. .... 3,000 229,500
Bristol-Myers Squibb Co. ........ 4,000 324,000
Electrical Utilities - 1.81%
American Electric Power Co. ..... 1,500 63,000
Central & South West Corp. ...... 6,000 127,500
Entergy Corp. ................... 4,000 109,500
Florida Progress Corp. .......... 3,000 93,938
Potomac Electric Power Co. ...... 5,000 115,625
Public Service Company of
Colorado......................... 3,000 124,500
Texas Utilities Co. ............. 5,000 172,188
Electronics - .56%
AMP, Inc. ....................... 6,000 250,500
Food Wholesalers - .70%
SuperValu, Inc. ................. 9,000 310,500
Industrial Manufacturing - .69%
Minnesota Mining & Manufacturing
Co. ............................. 3,000 306,000
Insurance - 3.03%
Allstate Corp. .................. 2,781 203,013
American General Corp. .......... 8,000 382,000
American States Financial Corp.
(b).............................. 8,000 368,000
IPC Holdings, Ltd. .............. 6,000 162,000
Reliance Group Holdings, Inc. ... 20,000 237,500
Machine Tools & Equipment - .88%
Snap-On, Inc. ................... 10,000 393,750
Metals Mining - .48%
Reynolds Metals Co. ............. 3,000 213,750
Oil & Gas - 5.90%
Elf Aquitaine.................... 7,000 381,063
Mobil Corp. ..................... 4,000 279,500
Occidental Petroleum Corp. ...... 9,000 225,563
Pacific Enterprises.............. 5,000 168,125
Phillips Petroleum Co. .......... 4,000 175,000
Royal Dutch Petroleum Co. ADR.... 6,800 369,750
Tenneco, Inc. ................... 2,000 90,375
Ultramar Diamond Shamrock
Corp. ........................... 6,000 195,750
Unocal Corp. .................... 8,000 310,500
USX-Marathon Group............... 15,000 433,125
Paper & Forest Products - .85%
Union Camp Corp. ................ 2,500 125,000
Westvaco Corp. .................. 4,000 125,750
Weyerhaeuser Co. ................ 2,500 130,000
Retail Trade - 1.55%
Family Dollar Stores, Inc. ...... 6,000 163,500
J.C. Penney Co. ................. 6,000 313,125
Sears Roebuck & Co. ............. 4,000 215,000
Telecommunications - 1.86%
BCE, Inc. ....................... 6,000 168,000
GTE Corp. ....................... 8,000 351,000
SBC Communications, Inc. ........ 5,000 309,375
Telephone Utilities - .45%
Portugal Telecom S.A. ADR........ 5,000 200,625
----------
Total Common Stocks (cost: $10,775,197) 15,330,764
----------
CONVERTIBLE PREFERRED
STOCKS - 14.66%
Banks - 2.49%
Bank of Portugal................. 4,000 274,000
National Australia Bank, Ltd. ... 30,000 838,125
Atlas Balanced Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
Broadcast, Radio & TV - .75%
Merrill Lynch-Cox Communications
STRYPES.......................... 14,000 $ 334,250
Electronics - .46%
Elsag Bailey Process Automation
N.V. (a)......................... 5,000 204,375
Environmental Management - .52%
Browning-Ferris Industries, Inc.
ACES............................. 7,000 232,750
Financial Services - 1.72%
MCN Corp. PRIDES................. 8,000 223,000
MCN Financing III PRIDES......... 10,000 543,750
Food & Kindred Products - .65%
Chiquita Brands.................. 5,000 290,000
Gas Utilities - .43%
Enron Corp. ACES................. 10,000 191,250
Industrials - .38%
Owens-Corning Capital LLC MIPS
(a).............................. 3,000 169,875
Insurance - 1.83%
Allstate Corp. .................. 4,500 234,000
American Heritage................ 5,000 275,000
Salomon, Inc.-FSA Holdings, Inc.
DECS............................. 9,000 306,000
Oil & Gas - .48%
Atlantic Richfield Co. .......... 10,000 215,000
Paper & Forest Products - 1.01%
James River Corp., Series P
DECS............................. 13,000 448,500
Printing, Publishing & Allied
Products - .65%
Hollinger International.......... 25,000 287,500
Telecommunications - 3.29%
IXC Communications, Inc. (a)..... 3,000 354,000
SBC Communications, Inc. ........ 15,000 708,750
U.S. West, Inc. ................. 10,000 403,750
----------
Total Convertible Preferred Stocks (cost:
$5,557,491) 6,533,875
----------
CONVERTIBLE BONDS - 2.89%
Computer Software - 1.09%
Platinum Technology, Inc., 6.75%
due 11/15/01..................... $ 400,000 484,000
Industrials - .45%
Alza Corp., 5% due 05/01/06...... $ 200,000 200,750
Insurance - .56%
Mutual Risk Management, 0% due
10/30/15 (a)..................... $ 500,000 251,250
Metals Mining - .79%
Inco, Ltd., 5.75% due 07/01/04... $ 300,000 354,000
----------
Total Convertible Bonds (cost: $1,093,409) 1,290,000
----------
CORPORATE BONDS - 7.83%
Automotive - .21%
General Motors Acceptance Corp.,
5.50% due 12/15/01............... $ 100,000 94,483
Banks - 2.77%
Barnett Banks, Inc., 8.50% due
03/01/99......................... $ 325,000 335,829
Chase Manhattan Corp., 6.625% due
08/01/03......................... $ 300,000 301,124
First Chicago NBD Bancorp., 7.25%
due 08/15/04..................... $ 590,000 595,781
</TABLE>
23
<PAGE> 25
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Diversified Media - .18%
Time Warner, Inc., 7.95% due
02/01/00......................... $ 80,000 $ 82,469
Drugs and Health Care - .54%
R.P. Scherer Corp., 6.75% due
02/01/04......................... $ 250,000 239,786
Financial Services - .56%
PaineWebber Group, Inc., 7% due
03/01/00......................... $ 250,000 251,721
Food Processing - .57%
ConAgra, Inc., 7.40% due
09/15/04......................... $ 250,000 253,241
Foreign Government - .42%
Treasury Corp. of Victoria, 9%
due 09/04/02..................... $ 228,000 187,138
Gas Utilities - .73%
Enron Corp., 7.625% due
09/10/04......................... $ 175,000 180,264
Enron Corp., 9.875% due
06/15/03......................... $ 125,000 142,973
Hotel/Gaming - .28%
Circus Circus Enterprises, Inc.
6.75% due 07/15/03............... $ 125,000 122,634
Oil and Gas - .76%
Coastal Corp., 9.75% due
08/01/03......................... $ 300,000 340,064
Paper & Forest Products - .46%
Fletcher Challenge Canada, Ltd.,
7.75% due 06/20/06............... $ 200,000 205,440
Telecommunications - .35%
Tele-Communications, Inc., 7.25%
due 08/01/05..................... $ 160,000 154,235
----------
Total Corporate Bonds (cost: $3,486,770) 3,487,182
----------
UNITED STATES TREASURY
NOTES - 18.76%
5.625% due 10/31/97............... $ 350,000 350,109
6.125% due 08/31/98............... $ 2,000,000 2,005,000
5.50% due 11/15/98................ $ 1,990,000 1,977,563
Strip, 0% due 08/15/20............ $ 20,000,000 4,029,180
----------
Total United States Treasury Notes (cost:
$8,306,887) 8,361,852
----------
SHORT-TERM SECURITIES - 20.76%
Triparty Repurchase Agreement
dated June 30, 1997 with
Prudential Securities, Inc.,
effective yield of 5.45%, due
July 1, 1997, collateralized by
FNMAs, 6.45%, April 23, 2001 with
a value of $9,488,761............ $ 9,253,657 9,253,657
----------
Total Short-Term Securities (cost: $9,253,657) 9,253,657
----------
TOTAL SECURITIES (COST: $38,473,411) - 99.30% 44,257,330
OTHER ASSETS AND LIABILITIES, NET - .70% 314,017
----------
NET ASSETS - 100.00% $ 44,571,347
==========
<CAPTION>
Atlas Growth and Income Fund
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
COMMON STOCKS - 85.19%
Aerospace/Defense - .93%
Precision Castparts Corp. ....... 27,000 $ 1,609,875
Apparel & Textiles - 2.23%
Jones Apparel Group, Inc. (b).... 50,500 2,411,375
Warnaco Group, Inc. ............. 22,300 710,813
Wolverine World Wide, Inc. ...... 24,450 742,669
Banks - 3.13%
First Bank System, Inc. ......... 10,000 853,750
First of America Bank Corp. ..... 19,500 892,125
First Tennessee National
Corp. ........................... 19,500 936,000
Firstar Corp. ................... 30,000 915,000
National City Corp. ............. 35,000 1,837,500
Chemicals & Allied
Products - 3.24%
Betzdearborn, Inc. .............. 10,000 660,000
DuPont (E.I.) De Nemours &
Co. ............................. 58,200 3,659,325
Goodrich (B. F.) Co. ............ 30,000 1,299,375
Computer Hardware - 2.11%
Gateway 2000, Inc. .............. 60,000 1,946,250
International Business Machines
Corp. ........................... 10,000 901,875
Sun Microsystems, Inc. .......... 22,000 818,811
Computer Software - 3.68%
Baan Company NV.................. 30,000 2,066,250
BMC Software, Inc. .............. 35,000 1,938,125
CBT Group PLC.................... 21,500 1,357,188
Microsoft Corp. (n) ............. 8,000 1,011,000
Cosmetics/Personal Care - 2.07%
Avon Products, Inc. ............. 35,000 2,469,687
International Flavors &
Fragrances, Inc. ................ 22,000 1,111,000
Drugs & Health Care - 9.90%
American Home Products Corp. .... 36,000 2,754,000
Bristol-Myers Squibb Co. ........ 12,000 972,000
Cardinal Health, Inc. ........... 54,650 3,128,712
Healthsouth Corp. (b)............ 220,000 5,486,250
Merck & Co., Inc. ............... 9,000 931,500
Mylan Laboratories............... 60,000 885,000
Omnicare, Inc. .................. 35,000 1,098,125
Vencor, Inc. .................... 45,000 1,901,250
Electrical Equipment - 2.27%
AMP, Inc. ....................... 45,000 1,878,750
Honeywell, Inc................... 27,000 2,048,625
Electrical Utilities - .58%
Carolina Power & Light Co. ...... 28,000 1,004,500
Electronics - 1.82%
Intel Corp. ..................... 15,000 2,127,187
LSI Logic Corp. ................. 32,000 1,024,000
Energy Services &
Producers - 1.53%
Schlumberger, Ltd. .............. 21,200 2,650,000
Environmental Management - .83%
United Waste Systems, Inc. ...... 35,000 1,435,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE> 26
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Financial Services - 11.49%
American Express Co. ............ 17,000 $ 1,266,500
Associates First Capital
Corp. ........................... 42,000 2,331,000
Charles Schwab Corp. ............ 50,000 2,034,375
Citicorp......................... 4,000 482,250
Federal Home Loan Mortgage
Corp. ........................... 74,000 2,543,750
Household International, Inc. ... 33,000 3,875,437
MBNA Corp. ...................... 107,500 3,937,188
Morgan Stanley, Dean Witter,
Discover & Co. .................. 35,000 1,507,188
SunAmerica, Inc. ................ 40,000 1,950,000
Food & Beverages - .47%
JP Food Service (b).............. 28,600 820,462
Funeral Services - 1.73%
Service Corporation
International.................... 91,400 3,004,775
Gas Utilities - .95%
Sonat, Inc. ..................... 32,000 1,640,000
Hotel/Gaming - .71%
Circus Circus Enterprises, Inc.
(b).............................. 50,000 1,231,250
Industrial Equipment - .22%
Camco International, Inc. ....... 7,000 383,250
Industrial Manufacturing - 1.61%
Tyco International, Ltd. ........ 40,000 2,782,500
Insurance - 2.03%
Hartford Financial Services
Group, Inc. ..................... 20,000 1,655,000
Hartford Life, Inc. (b).......... 4,000 150,000
MGIC Investment Corp. ........... 36,000 1,725,750
Leisure & Entertainment - 2.58%
Carnival Corp. Cl.A.............. 52,000 2,145,000
Regal Cinemas, Inc. ............. 70,750 2,334,750
Manufacturing - .79%
New Holland NV................... 50,000 1,368,750
Medical Products - 1.91%
Baxter International, Inc. ...... 15,000 783,750
Becton Dickinson & Co. .......... 50,000 2,531,250
Metals Mining - 1.08%
Nucor Corp. ..................... 33,100 1,870,150
Oil & Gas - 2.23%
Atlantic Richfield Co. .......... 10,000 705,000
British Petroleum Co. PLC ADR.... 7,200 539,100
United Meridian Corp. (b)........ 25,000 750,000
USX-Marathon Group............... 65,000 1,876,875
Oil Drilling - .70%
Noble Drilling Corp. ............ 53,781 1,213,434
Printing, Publishing & Allied
Products - 1.68%
Dun & Bradstreet Corp. .......... 55,000 1,443,750
R. R. Donnelley & Sons........... 40,000 1,465,000
Railroads - .98%
Canadian Pacific, Ltd. .......... 60,000 1,706,250
Restaurants - 1.28%
Bob Evans Farms, Inc. ........... 60,000 1,016,250
Landry's Seafood Restaurants,
Inc. ............................ 52,000 1,196,000
Retail Trade - 6.79%
Costco Companies, Inc. (b)....... 65,000 2,136,875
J. C. Penney Company, Inc. ...... 30,000 1,565,625
Kohl's Corp. .................... 31,000 1,641,063
Pier 1 Imports, Inc. ............ 35,000 927,500
Wal-Mart Stores, Inc. ........... 61,000 2,062,563
Walgreen Co. .................... 35,000 1,876,875
Williams-Sonoma, Inc. (b)........ 36,500 1,560,375
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
Specialty Retailing - 6.94%
CVS Corp. ....................... 33,000 $ 1,691,250
General Nutrition Co. ........... 50,000 1,400,000
Home Depot, Inc. (b)............. 17,000 1,171,937
Intimate Brands, Inc. ........... 90,000 1,890,000
Nine West Group, Inc. ........... 49,500 1,890,281
Samsonite Corp. (b).............. 10,000 441,250
Sherwin Williams Co. ............ 45,200 1,395,550
Tupperware Corp. ................ 45,000 1,642,500
West Marine, Inc. ............... 20,000 515,000
Supermarkets - .67%
Kroger Co. ...................... 40,000 1,160,000
Telecommunications - 4.03%
Bell Atlantic Corp. ............. 19,600 1,487,150
GTE Corp. ....................... 65,000 2,851,875
SBC Communications, Inc. ........ 29,258 1,810,339
U.S. West, Inc. ................. 22,000 829,125
----------
Total Common Stocks (cost: $113,384,221) 147,686,009
----------
CONVERTIBLE PREFERRED STOCKS - 2.34%
Automotive - .25%
Daimler - Benz AG................ 5,100 429,675
Computer Software - .80%
Microsoft Corp. ................. 16,000 1,392,000
Gas-Utilities - .71%
Williams Cos., Inc., Series E.... 12,000 1,234,500
Insurance - .58%
Merrill Lynch - MGIC Investment
Corp. STRYPES.................... 3,000 247,500
Merrill Lynch - Sun America
STRYPES.......................... 11,000 753,500
----------
Total Convertible Preferred Stocks (cost:
$3,173,354) 4,057,175
----------
CONVERTIBLE BONDS - 3.20%
Computer Hardware - .63% EMC
Corp., 3.25% due 03/15/02 (a).... $ 1,000,000 1,093,750
Drugs & Health Care - .66%
Sunrise Assisted Living, Inc.,
5.5% due 06/15/02 (a)............ $ 1,023,000 1,130,415
Electronics - .63%
Photronics, Inc., 6.0% due
06/01/04......................... $ 1,000,000 1,086,250
Environmental Management - .97%
United States Filter Corp., 6%
due 09/15/05 (a)................. $ 500,000 775,625
United Waste Systems, Inc. 4.50%
due 06/01/01..................... $ 167,000 228,581
United Waste Systems, Inc. 4.50%
due 06/01/01 (a)................. $ 500,000 684,375
Machinery - .31%
Thermo Electron Corp., 4.25% due
01/01/03 (a)..................... $ 500,000 541,250
----------
Total Convertible Bonds (cost: $5,222,478) 5,540,246
----------
UNITED STATES TREASURY NOTES - 1.01%
5% due 01/31/98.................. $ 250,000 248,984
6.25% due 3/31/99................ $ 1,500,000 1,505,156
----------
Total United States Treasury Notes (cost:
$1,744,446) 1,754,140
----------
</TABLE>
25
<PAGE> 27
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
SHORT-TERM SECURITIES - 8.34%
Triparty Repurchase Agreement
dated June 30, 1997 with
Prudential Securities, Inc.,
effective yield of 5.45%, due
July 1, 1997, collateralized by
FHLMCs, 8.02%, October 1, 2023
with a value of $15,001,093 and
U. S. Treasury Notes, 5.75%,
October 31, 2000 with a value of
$188............................. $ 14,460,932 $ 14,460,932
----------
Total Short-Term Securities (cost: $14,460,932) 14,460,932
----------
TOTAL SECURITIES (COST: $137,985,431) - 100.08% 173,498,502
OTHER ASSETS AND LIABILITIES, NET - (.08)% (143,853)
----------
NET ASSETS - 100.00% $173,354,649
==========
Atlas Strategic Growth Fund
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
COMMON STOCKS - 78.73%
Air Freight - 1.43%
Federal Express Corp. (b)........ 11,500 $ 664,125
Air Travel - .78%
Delta Air Lines Inc.............. 4,400 360,800
Apparel & Textiles - 4.99%
Fruit of the Loom, Inc. (b)...... 17,200 533,200
Gap, Inc......................... 9,800 380,975
Liz Claiborne, Inc............... 13,100 610,788
TJX Companies, Inc............... 30,000 791,250
Automotive - 1.56%
Navistar International Corp.
(b).............................. 42,100 726,225
Banks - 3.42%
BankAmerica Corp................. 9,000 581,062
Chase Manhattan Corp............. 4,900 475,606
Citicorp......................... 4,400 530,475
Building Materials - 1.30%
Armstrong World Industries,
Inc.............................. 6,300 462,262
Masco Corp....................... 3,400 141,950
Computer Hardware - 10.43%
Compaq Computer Corp. (b)........ 7,300 724,525
Data General Corp. (b)........... 33,100 860,600
Dell Computer Corp............... 8,500 997,687
International Business Machines
Corp............................. 5,200 468,975
Sun Microsystems, Inc. (b)....... 21,500 800,202
Tandem Computers, Inc. (b)....... 49,100 994,275
Computer Software - 1.30%
Seagate Technology, Inc.......... 17,200 605,225
Consumer Goods & Services - .61%
Maytag Corp...................... 10,900 284,763
Drugs & Health Care - 1.41%
Healthsouth, Corp................ 26,200 653,363
<CAPTION>
Atlas Strategic Growth Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Electrical Utilities - 2.18%
GPU, Inc......................... 19,200 $ 688,800
Public Service Enterprise Group,
Inc.............................. 12,900 322,500
Electronics - 6.44%
Advanced Micro Devices, Inc.
(b).............................. 17,500 630,000
Harris Corp...................... 6,700 562,800
Intel Corp....................... 3,400 482,163
National Semiconductor Corp.
(b).............................. 24,800 759,500
Tektronix, Inc................... 9,300 558,000
Energy Services & Producers - .82%
Baker Hughes, Inc................ 9,900 383,006
Financial Services - 7.83%
Federal Home Loan Mortgage
Corp............................. 16,000 550,000
Green Tree Financial Corp........ 20,900 744,563
Merrill Lynch & Co., Inc......... 12,000 715,500
Morgan Stanley, Dean Witter,
Discover & Co.................... 23,740 1,022,304
Salomon, Inc..................... 10,900 606,313
Food & Beverages - 2.48%
Coors (Adolph) Co., Cl. B........ 27,100 721,537
Fleming Companies, Inc........... 24,000 432,000
Homebuilders/Real Estate - 3.35%
Centex Corp...................... 17,200 698,750
Kaufman & Broad Home Corp........ 18,200 319,638
Pulte Corp....................... 15,500 535,719
Insurance - 9.48%
American International Group,
Inc.............................. 3,100 463,062
Cigna Corp....................... 3,700 656,750
Conseco, Inc..................... 15,200 562,400
Lincoln National Corp............ 11,100 714,563
MBIA, Inc........................ 5,700 643,031
MGIC Investment Corp............. 15,400 738,238
Travelers Group, Inc............. 9,866 622,175
Leisure & Entertainment - 1.47%
Brunswick Corp................... 21,900 684,375
Manufacturing - 3.36%
Aeroquip-Vickers, Inc............ 16,200 765,450
Cincinnati Milacron, Inc......... 30,600 793,687
Metals Mining - 3.10%
Cyprus Amax Minerals Co.......... 27,700 678,650
USX-US Steel Group, Inc.......... 21,700 760,856
Oil & Gas - 4.93%
Oryx Energy Co................... 26,500 559,813
Pennzoil Co...................... 8,200 629,350
Unocal Corp...................... 13,700 531,731
USX-Marathon Group............... 19,700 568,838
Retail Trade - 5.23%
Costco Companies, Inc. (b)....... 21,500 706,812
Dayton Hudson Corp............... 14,600 776,537
F. W. Woolworth Corp. (b)........ 16,500 396,000
K Mart Corp...................... 44,700 547,575
Transportation - .83%
CSX Corp......................... 6,900 382,950
----------
Total Common Stocks (cost: $28,538,210) 36,564,269
----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE> 28
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Growth Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
SHORT-TERM SECURITIES - 21.10%
Triparty Repurchase Agreement
dated June 30, 1997 with
Prudential Securities, Inc.,
effective yield of 5.45%, due
July 1, 1997, collateralized by
FNMAs, 6.45%, April 23, 2001
with a value of $8,473,745 and
FHLMCs, 8.02%, October 1, 2023
with a value of $1,592,276...... $ 9,798,712 $ 9,798,712
----------
Total Short-Term Securities (cost: $9,798,712) 9,798,712
----------
TOTAL SECURITIES (COST: $38,336,922) - 99.83% 46,362,981
OTHER ASSETS AND LIABILITIES, NET - .17% 78,437
----------
NET ASSETS - 100.00% $ 46,441,418
==========
</TABLE>
<TABLE>
<CAPTION>
Atlas Global Growth Fund
- --------------------------------------------------------------
shares, units
or value
face amount (note 1)
------------ ----------
COMMON STOCKS - 84.44%
Aerospace/Defense - 1.56%
Rolls-Royce PLC.................. 113,900 $ 435,153
Air Travel - .97%
Ryanair Holdings PLC ADR (b)..... 10,000 271,250
Automotive - 1.62%
Porsche AG, Preference (b)....... 338 449,697
Banks - 9.12%
Banco Bradesco SA, Preference.... 5,940,000 59,400
Banco Frances del Rio de la Plata
SA Sponsored ADR................. 2,300 74,750
Bank Handlowy W. Warszawie (b)... 15,000 186,000
Bankers Trust New York Corp...... 3,000 261,000
Banque Libanaise GDR............. 14,000 291,900
Barclays PLC..................... 7,089 140,669
Chase Manhattan Corp............. 1,500 145,594
Citicorp......................... 1,500 180,844
HSBC Holdings PLC................ 11,000 330,825
Industrial Credit & Investment
Corp. of India, Ltd. GDR (a)..... 9,300 101,637
Industrial Finance Corp. ........ 45,300 53,214
Northern Trust Corp. ............ 1,000 48,375
PT Lippo Bank.................... 30,000 30,839
PT Pan Indonesia Bank............ 368,000 242,105
Societe Generale de Paris........ 3,000 334,754
Uniao de Bancos Brasileiros SA
GDR.............................. 1,500 55,688
Beer, Wine, & Distilled
Alcohol - 2.42%
Companhia Cervejaria Brahma,
Preference....................... 140,000 107,282
Guinness PLC..................... 30,000 293,580
Remy Cointreau................... 6,126 147,029
South African Breweries, Ltd. ... 4,050 124,343
<CAPTION>
Atlas Global Growth Fund (continued)
- --------------------------------------------------------------
shares, units
or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Computer Hardware - 4.19%
Accton Technology Corp. GDR...... 25,000 $ 218,750
Cisco Systems, Inc. (b).......... 1,500 100,687
International Business Machines
Corp. ........................... 4,400 396,825
Iomega Corp. (b)................. 12,000 238,500
NEC Corp. ....................... 15,000 209,415
Computer Software - 5.57%
Axime (b)........................ 2,000 236,437
Cap Gemini Sogeti SA (b)......... 5,000 263,653
First Data Corp. ................ 400 17,575
Konami Co., Ltd. ................ 6,000 224,074
Microsoft Corp. (b).............. 2,000 252,750
Misys PLC........................ 6,000 136,089
Nintendo Corp., Ltd. ............ 5,000 417,957
Consumer Goods & Services - 1.87%
Callaway Golf Co................. 7,200 255,600
PT Citra Marga Nusaphala
Persada.......................... 30,000 17,578
Reebok International, Ltd. ...... 5,300 247,775
Diversified Financial - 1.81%
American Express Co.............. 1,000 74,500
Compagnie Financiere de
Paribas.......................... 6,000 414,360
Taiwan Fund, Inc................. 600 15,150
Diversified Holding
Companies - .37%
Hutchison Whampoa, Ltd. ......... 12,000 103,778
Drugs & Health Care -- 5.65%
Amgen, Inc. (b).................. 4,000 232,500
Biochem Pharma, Inc. (b)......... 7,600 169,100
Genzyme Corp. (b)................ 5,800 160,950
Gilead Sciences, Inc. (b)........ 3,100 85,638
Glaxo Wellcome PLC, ADR.......... 10,000 418,125
Novartis AG-Reg.................. 316 505,167
Electric Utilities - 3.04%
Beijing Datang Power Generation
Co., Ltd. ....................... 600,000 276,871
Electricidade de Portugal SA..... 15,000 272,629
Empresa Nacional de Electricidad
SA (b)........................... 2,000 167,877
Mosenergo ADR.................... 3,000 127,544
Electronics - 3.43%
Intel Corp....................... 800 113,450
Keyence Corp..................... 1,650 244,754
SGS-Thomson Microelectronics NV
(b).............................. 2,000 160,000
Sony Corp. ...................... 5,000 435,845
Energy Services &
Producers - 1.28% Global Marine,
Inc. (b)......................... 9,000 209,250
Western Atlas, Inc. (b).......... 2,000 146,500
Engineering & Construction - .24%
Koninklijke Boskalis Westminster
NV............................... 3,400 66,667
Financial Services - 4.76%
Associates First Capital Corp.
(b).............................. 5,000 277,500
Federal National Mortgage
Association...................... 5,000 218,125
Merita, Ltd., Cl. A (b).......... 200,400 656,176
Promise Co., Ltd. ............... 3,000 171,983
Food & Beverages - 1.80%
Cresud SA ADR.................... 5,000 111,250
Dairy Farm International
Holdings, Ltd. .................. 264,958 198,719
Hellenic Bottling Co., SA........ 2,500 92,318
Panamerican Beverages, Inc., Cl.
A................................ 3,000 98,625
</TABLE>
27
<PAGE> 29
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- --------------------------------------------------------------
shares, units
or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Health Care/Supplies &
Services - 2.29%
Gehe AG.......................... 600 $ 40,946
Quintiles Transnational Corp.
(b).............................. 2,500 174,062
United States Surgical Corp. .... 11,300 420,925
Homebuilders/Real Estate - 1.70%
Brazil Realty SA (a)............. 3,000 74,404
IRSA Inversiones y
Representaciones SA.............. 30,000 131,420
Solidere GDR..................... 15,000 266,625
Hotel/Gaming - .89%
International Game Technology.... 14,000 248,500
Industrial Services - 2.95%
Adecco SA........................ 1,400 536,986
IHC Caland NV.................... 1,200 65,577
WPP Group PLC.................... 52,900 217,074
Insurance - 3.58%
American International Group,
Inc.............................. 1,000 149,375
Marschollek, Lautenschlaeger und
Partner AG....................... 700 166,595
Mediolanum SpA (b)............... 10,000 112,622
Norwich Union PLC (b)............ 50,000 265,936
Reinsurance Australia Corp., Ltd.
(a).............................. 35,000 105,887
Skandia Forsakrings AB Free...... 5,300 195,269
Leisure & Entertainment - .23%
Resorts World Berhad............. 21,000 63,233
Manufacturing - 1.39%
Bic Corp......................... 1,000 163,465
Bombardier, Inc. Cl. B........... 6,000 136,130
Powerscreen International PLC.... 8,000 87,164
Metals Mining - .59%
Freeport-McMoRan Copper & Gold,
Inc., Cl. B...................... 800 24,900
Minerals Technologies, Inc. ..... 600 22,500
Newmont Mining Corp. ............ 3,000 117,000
Oil & Gas - 4.48%
British Petroleum Co. PLC ADR.... 8,223 102,187
Gazprom ADR (a).................. 10,000 172,000
Gulf Canada Resources, Ltd.
(b).............................. 4,000 33,250
Lukoil Oil Co. Sponsored ADR..... 2,900 228,855
Petroleo Brasileiro SA,
Preference....................... 753,000 206,340
Saga Petroleum ASA, Cl. A........ 20,000 379,305
Transocean Offshore, Inc. ....... 1,700 123,462
Paper & Forest Products - .24%
Bobst Bearers AG................. 40 67,945
Printing, Publishing & Allied
Products - .05%
Reed International PLC........... 1,400 13,564
Retail Trade - 1.89%
Credit Saison Co., Ltd. ......... 10,000 244,317
PT Matahari Putra Prima.......... 30,000 60,444
Sonae Investimentos-SGPS SA...... 5,300 221,644
Specialty Retailing - 3.61%
Circuit City Stores, Inc. ....... 4,000 142,250
Giordano International, Ltd. .... 100,000 68,411
Grupo Elektra SA................. 6,300 68,508
VBH-Vereinigter Baubeschlag
Handel AG........................ 2,000 42,839
Wella AG......................... 1,000 682,437
Supermarkets - .57%
Disco ADR (b).................... 4,000 158,500
</TABLE>
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- --------------------------------------------------------------
shares, units
or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Telecommunications-Equipment - 1.58%
Alcatel Alsthom.................. 3,500 $ 438,173
Telecommunications-Technology - 7.05%
Ascend Communications, Inc.
(b).............................. 2,000 78,750
Millicom International Cellular
SA (b)........................... 10,900 520,475
Newbridge Networks Corp. ........ 6,000 261,000
QUALCOMM, Inc. (b)............... 8,700 442,612
SBC Communications, Inc. ........ 3,500 216,562
SK Telecom, Ltd. ................ 454 234,491
Videsh Sanchar Nigam............. 10,000 207,500
Telephone Utilities - 1.26%
Telecom Italia SpA............... 50,000 160,608
Telecomunicacoes Brasileiras SA,
Preference....................... 1,250,000 189,750
Transportation - .39%
Guanshen Railway Co., Ltd.,
Sponsored ADR (b)................ 5,000 109,375
----------
Total Common Stocks (cost: $19,474,939) 23,487,093
----------
RIGHTS, WARRANTS AND
CERTIFICATES - .04%
PT Panin Bank Rts., Exp.
07/22/97......................... 184,000 0
PT Citra Marga Rts., Exp.
07/28/97......................... 30,000 11,411
----------
Total Rights, Warrants and Certificates (Cost: $0) 11,411
----------
UNITED STATES TREASURY OBLIGATIONS - 4.23%
Strip, 0% due 11/15/18........... $ 1,330,000 302,520
Strip, 0% due 02/15/19........... $ 1,300,000 290,575
Strip, 0% due 08/15/19........... $ 2,700,000 584,196
----------
Total United States Treasury Obligations (cost:
$1,202,993) 1,177,291
----------
SHORT-TERM SECURITIES - 11.46%
Triparty Repurchase Agreement
dated June 30, 1997 with
Prudential Securities, Inc.,
effective yield of 5.45%, due
July 1, 1997, collateralized by
FNMAs, 6.45%, April 23, 2001 with
a value of $3,268,059............ $ 3,187,086 3,187,086
----------
Total Short-Term Securities (cost: $3,187,086) 3,187,086
----------
TOTAL SECURITIES (COST: $23,865,018) - 100.17% 27,862,881
OTHER ASSETS AND LIABILITIES, NET - (0.17)% (48,429)
----------
NET ASSETS - 100.00% $27,814,452
==========
</TABLE>
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund
- --------------------------------------------------------------
shares or value
face amount (Note 1)
------------ ----------
<S> <C> <C>
COMMON STOCKS - 76.96%
Automotive - 1.88%
Budget Group, Inc. (b)........... 2,700 $ 93,150
Computer Hardware - 1.49%
MicroTouch Systems, Inc. (b)..... 3,200 73,600
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE> 30
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
<S> <C> <C>
Computer Software - 20.25%
Acxiom Corp. (b)................. 1,800 $ 36,900
Affiliated Computer Services,
Inc. (b)......................... 3,700 103,600
Aspen Technologies, Inc. (b)..... 3,000 112,875
Global DirectMail Corp. (b)...... 1,800 46,913
Integrated Measurement Systems,
Inc. (b)......................... 2,500 37,031
Medical Manager Corp. (b)........ 4,500 66,375
National Instruments Corp. (b)... 2,000 70,500
Registry, Inc. (b)............... 2,000 92,000
Saville System Ireland PLC ADR
(b).............................. 2,400 124,800
Siebel Systems, Inc. (b)......... 3,000 96,750
SPSS, Inc. (b)................... 2,300 66,700
Visio Corp. (b).................. 2,100 148,050
Consumer Goods & Services - 5.80%
CORT Business Services Corp.
(b).............................. 3,700 109,150
Renters Choice, Inc. (b)......... 5,000 99,375
Sitel Corp. (b).................. 3,800 78,375
Diversified Financial - 2.44%
FIRSTPLUS Financial Group, Inc.
(b).............................. 1,300 44,200
NCO Group, Inc. (b).............. 2,600 76,375
Drugs & Healthcare - 2.05%
Parexel International Corp.
(b).............................. 3,200 101,600
Electronics - 5.33%
Advanced Technology Materials,
Inc. (b)......................... 3,000 88,125
Benchmarq Microelectronics,
Inc.............................. 5,000 86,250
Pittway Corp..................... 1,800 89,550
Energy Services & Producers - .95%
Core Laboratories NV (b)......... 1,800 46,800
Financial Services - 3.17%
Investors Financial Services
Corp............................. 3,300 156,750
Food & Beverages - 1.39%
JP Foodservice, Inc. (b)......... 2,400 68,850
Healthcare/Supplies &
Services - 5.44%
AmeriSource Health Corp. Cl. A
(b).............................. 1,000 49,875
OccuSystems, Inc. (b)............ 3,000 87,000
Pediatrix Medical Group, Inc..... 1,500 68,719
Rural/Metro Corp. (b)............ 2,200 63,869
Home Builders/Real Estate - 1.36%
Fairfield Communities, Inc.
(b).............................. 2,000 67,250
Industrial Services - 6.06%
Culligan Water Technologies, Inc.
(b).............................. 2,000 89,500
Daisytek International Corp.
(b).............................. 1,500 59,437
IntelliQuest Information Group,
Inc. (b)......................... 3,100 69,750
Rental Service Corp. (b)......... 3,100 81,375
Insurance - 1.36% CapMAC Holdings,
Inc.............................. 2,000 67,250
Manufacturing - 1.61%
American Pad & Paper Co. (b)..... 1,800 30,375
PRI Automation, Inc. (b)......... 1,300 49,319
Oil & Gas - 4.21% Cross Timbers
Oil Co........................... 2,000 38,500
Newfield Exploration Co. (b)..... 2,700 54,000
Numar Corp. (b).................. 3,100 116,056
Restaurants - 1.87%
CKE Restaurants, Inc............. 1,600 50,600
Einstein/Noah Bagel Corp. (b).... 3,500 41,781
Retail Trade - 2.71%
Barnett, Inc. (b)................ 2,500 61,250
North Face (The), Inc. (b)....... 4,000 73,000
Atlas Emerging Growth Fund (continued)
- --------------------------------------------------------------
shares or value
face amount (note 1)
------------ ----------
Specialty Retailing - 3.25%
Linens 'N Things, Inc. (b)....... 2,800 $ 82,950
Wilmar Industries, Inc. (b)...... 3,200 78,000
Telecommunications - 1.87%
ACC Corp. (b).................... 3,000 92,625
Transportation - 2.47%
Genesee & Wyoming, Inc. (b)...... 2,400 63,000
Swift Transportation Co. (b)..... 2,000 59,000
----------
Total Common Stocks (cost: $3,225,638) 3,809,125
----------
SHORT-TERM SECURITIES - 21.81%
Triparty Repurchase Agreement
dated June 30, 1997 with
Prudential Securities, Inc.,
effective yield of 5.45%, due
July 1, 1997, collateralized by
FNMAs, 6.45%, April 23, 2001 with
a value of $1,106,956............ $ 1,079,529 1,079,529
----------
Total Short-Term Securities (cost: $1,079,529) 1,079,529
----------
TOTAL SECURITIES (COST: $4,305,167) - 98.77% 4,888,654
OTHER ASSETS AND LIABILITIES, NET - 1.23% 60,951
----------
NET ASSETS - 100.00% $ 4,949,605
==========
</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
June 30, 1997, the value of these securities amounted to $979,500 or 2.20%
of net assets in the Balanced Fund, $4,225,415 or 2.44% of net assets in the
Growth and Income Fund, $4,733,179 or 13.36% of net assets in the Strategic
Income Fund, and $453,928 or 1.63% of net assets in the Global Growth Fund.
(b) Non-income producing security.
(c) Represents the current interest rate for a variable rate security.
29
<PAGE> 31
Statements of Investments in Securities and Net Assets June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
(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 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 June 30, 1997.
(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) Indexed instrument for which the principal amount and/or interest due at
maturity is affected by the relative value of a foreign currency.
(m) Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
<TABLE>
<S> <C>
AUD - Australian Dollar IEP - Irish Punt
ARP - Argentine Peso IDR - Indonesian Rupiah
CAD - Canadian Dollar ITL - Italian Lira
CHF - Swiss Franc JPY - Japanese Yen
CZK - Czech Koruna KRW - South Korean Won
DEM - German Deutsche Mark MXP - Mexican Peso
DKK - Danish Krone NOK - Norwegian Krone
ESP - Spanish Peseta NZD - New Zealand Dollar
FIM - Finnish Markka PLZ - Polish Zloty
FRF - French Franc SEK - Swedish Krona
GBP - British Pound Sterling SKK - Slovakian Koruna
GRD - Greek Drachma ZAR - South African Rand
</TABLE>
<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>
(n) A sufficient amount of securities has been designated to cover outstanding written call and put options as follows:
Strategic Income Fund:
Put Option on Germany (Republic of) Bonds, Series 118,
5.25% due 02/21/01 34,500 Jul-97 99.57DEM $ 559 $ 0
Put Option on Japanese Yen 20,000,000 Jul-97 115.00JPY 922 857
Put Option on Japanese Yen 20,000,000 Jul-97 116.50JPY 927 182
-------------------
$ 2,408 $ 1,039
===================
Growth and Income Fund:
Call Option on Microsoft Corp. 40 Jul-97 $ 135.00 $12,379 $ 4,000
Call Option on Microsoft Corp. 40 Jul-97 $ 140.00 6,130 1,500
-------------------
$18,509 $ 5,500
===================
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE> 32
- --------------------------------------------------------------------------------
(This page has been left blank intentionally.)
31
<PAGE> 33
Statements of Assets and Liabilities June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds Bond Funds
-------------------------------------------------------------------------------------
California National
Insured Insured U.S.
U.S. California National Intermediate Intermediate Government
Treasury Municipal Municipal Municipal Municipal Intermediate
Money Fund Money Fund Money Fund Fund Fund Fund
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in
securities, at
identified cost..... $67,099,885 $ 50,302,570 $ 8,242,184 $18,164,877 $11,432,735 $ 5,691,938
========= ========== ========== ========= ========= =========
Investment in
securities, at
value............... $67,099,885 $ 50,302,570 $ 8,242,184 $18,678,369 $11,776,015 $ 5,581,920
Cash.................. 1,931...... 91,305 20,101 33,881 12,690 79,555
Receivables for:
Sales of
investments....... 0 0 0 0 0 0
Sales of Fund's
shares............ 147,109 20,565 50,200 0 0 250
Accrued interest and
dividends......... 0 478,400 91,144 334,030 132,718 29,698
Other............... 0 0 0 0 0 0
Unrealized
appreciation on
forward foreign
currency exchange
contracts (Note 8).... 0 0 0 0 0 0
Unamortized
organization costs
(Note 2).............. 1,436 0 0 1,436 1,436 1,436
--------- ---------- ---------- --------- --------- ---------
Total assets.......... 67,250,361 50,892,840 8,403,629 19,047,716 11,922,859 5,692,859
--------- ---------- ---------- --------- --------- ---------
LIABILITIES:
Payables for:
Purchases of
investments......... 0 2,519,449 679,570 0 0 0
Redemptions of
Fund's shares....... 192,993 77,638 33,650 0 4,576 3,000
Dividends........... 12,377 5,160 1,218 18,665 15,138 10,536
Repurchases of
investments under
dollar roll
agreements.......... 0 0 0 0 0 0
Accrued expenses.... 31,573 25,818 4,204 20,923 11,051 3,839
Other liabilities... 0 0 0 0 0 0
Variation margin on
futures contracts
(Note 9).............. 0 0 0 0 0 0
Options written, at
value (premiums
received $2,408 and
$18,509, respectively)
(Note 10)............. 0 0 0 0 0 0
--------- ---------- ---------- --------- --------- ---------
Total liabilities..... 236,943 2,628,065 718,642 39,588 30,765 17,375
--------- ---------- ---------- --------- --------- ---------
NET ASSETS.............. $67,013,418 $ 48,264,775 $ 7,684,987 $19,008,128 $11,892,094 $ 5,675,484
========= ========== ========== ========= ========= =========
NET ASSETS CONSIST OF:
Net unrealized
appreciation
(depreciation) (Note
3).................... $ 0 $ 0 $ 0 $ 513,492 $ 343,280 $ (110,018)
Accumulated net
realized gain
(loss)................ (4,839) (85) (377) (391,775) (299,877) (265,975)
Undistributed net
investment income..... 0 0 0 0 0 0
Paid in capital....... 67,018,257 48,264,860 7,685,364 18,886,411 11,848,691 6,051,477
--------- ---------- ---------- --------- --------- ---------
NET ASSETS.............. $67,013,418 $ 48,264,775 $ 7,684,987 $19,008,128 $11,892,094 $ 5,675,484
========= ========== ========== ========= ========= =========
NET ASSET VALUE PER
SHARE:
Class A
Net Assets.......... $66,856,841 $ 48,264,775 $ 7,684,987 $18,451,471 $11,595,234 $ 5,322,443
Shares
outstanding......... 66,861,678 48,264,860 7,685,364 1,773,125 1,120,619 554,819
Net asset value per
share............... $ 1.00 $ 1.00 $ 1.00 $ 10.41 $ 10.35 $ 9.59
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 $ 10.73 $ 10.67 $ 9.89
Class B
Net Assets.......... $ 156,577 NA NA $ 556,657 $ 296,860 $ 353,041
Shares
outstanding......... 156,579 NA NA 53,526 28,669 36,800
Net asset value per
share and maximum
offering price...... $ 1.00 NA NA $ 10.40 $ 10.35 $ 9.59
CAPITAL SHARES
AUTHORIZED:........... 75,000,000 350,000,000 130,000,000 25,000,000 25,000,000 25,000,000
========= ========== ========== ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
32
<PAGE> 34
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
---------------------------------------------------------------------------------------------------------------------------
U.S.
Government
California National and Mortgage Strategic
Municipal Municipal Securities Income Balanced Growth and Strategic Global
Bond Fund Bond Fund Fund Fund Fund Income Fund Growth Fund Growth Fund
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$167,151,352 $48,303,396 $245,309,502 $36,402,492 $38,473,411 $137,985,431 $38,336,922 $23,865,018
========== ========= ========== ========= ========= ========== ========= =========
$177,294,905 $51,060,795 $247,781,937 $36,773,494 $44,257,330 $173,498,502 $46,362,981 $27,862,881
54,809 76,238 37,848 1,099 529 3,268 0 0
0 0 36,821 1,123,300 0 1,250,845 0 406,955
58,858 10,285 87,386 22,722 140,795 164,171 116,366 124,035
3,221,619 658,787 1,215,185 618,468 252,640 231,202 23,020 29,329
0 0 0 0 1,635 5,325 0 21,688
0 0 0 16,420 0 0 0 79
1,436 1,436 1,436 0 1,436 1,436 1,436 0
---------- --------- ---------- --------- --------- ---------- --------- ---------
180,631,627 51,807,541 249,160,613 38,555,503 44,654,365 175,154,749 46,503,803 28,444,967
---------- --------- ---------- --------- --------- ---------- --------- ---------
0 1,435,590 0 2,971,631 0 1,366,272 0 573,084
33,982 0 176,848 6,000 0 197,210 0 0
215,803 41,877 438,842 120,257 22,743 5,697 0 0
0 0 34,979,522 0 0 0 0 0
213,588 60,673 271,601 15,838 60,275 225,115 62,385 47,846
0 0 30,741 6,263 0 306 0 9,585
0 0 0 1,275 0 0 0 0
0 0 0 1,039 0 5,500 0 0
---------- --------- ---------- --------- --------- ---------- --------- ---------
463,373 1,538,140 35,897,554 3,122,303 83,018 1,800,100 62,385 630,515
---------- --------- ---------- --------- --------- ---------- --------- ---------
$180,168,254 $50,269,401 $213,263,059 $35,433,200 $44,571,347 $173,354,649 $46,441,418 $27,814,452
========== ========= ========== ========= ========= ========== ========= =========
$ 10,143,553 $ 2,757,399 $ 2,472,435 $ 389,195 $ 5,785,554 $ 35,525,774 $ 8,026,059 $ 3,998,950
(205,526) 271,911 (14,629,869) 132,374 420,715 9,315,578 1,282,535 665,542
0 0 0 0 8 (16,655) 144,502 47,828
170,230,227 47,240,091 225,420,493 34,911,631 38,365,070 128,529,952 36,988,322 23,102,132
---------- --------- ---------- --------- --------- ---------- --------- ---------
$180,168,254 $50,269,401 $213,263,059 $35,433,200 $44,571,347 $173,354,649 $46,441,418 $27,814,452
========== ========= ========== ========= ========= ========== ========= =========
$174,029,933 $47,805,541 $207,017,166 $30,219,712 $38,191,994 $157,709,776 $37,775,855 $23,823,016
15,609,822 4,244,099 20,519,481 5,858,178 2,924,395 7,897,503 2,313,815 1,844,428
$ 11.15 $ 11.26 $ 10.09 $ 5.16 $ 13.06 $ 19.97 $ 16.33 $ 12.92
$ 11.49 $ 11.61 $ 10.40 $ 5.32 $ 13.46 $ 20.59 $ 16.84 $ 13.32
$ 6,138,321 $ 2,463,860 $ 6,245,893 $ 5,213,488 $ 6,379,353 $ 15,644,873 $ 8,665,563 $ 3,991,436
550,257 218,652 619,046 1,012,069 489,825 785,697 535,734 311,424
$ 11.16 $ 11.27 $ 10.09 $ 5.15 $ 13.02 $ 19.91 $ 16.18 $ 12.82
50,000,000 20,000,000 50,000,000 50,000,000 20,000,000 20,000,000 10,000,000 15,000,000
========== ========= ========== ========= ========= ========== ========= =========
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Emerging Growth Fund
---------------------------------------------------------------------------------------------------------------------------
<S> <C>
$ 4,305,167
=========
$ 4,888,654
0
0
65,303
479
0
0
0
---------
4,954,436
---------
0
0
0
0
4,831
0
0
0
---------
4,831
---------
$ 4,949,605
=========
$ 583,487
0
(1,748)
4,367,866
---------
$ 4,949,605
=========
$ 4,379,894
352,159
$ 12.44
$ 12.82
$ 569,711
45,868
$ 12.42
15,000,000
=========
</TABLE>
33
<PAGE> 35
Statements of Operations
- --------------------------------------------------------------------------------
<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> <C>
INVESTMENT INCOME:
Income:
Interest......... $ 1,720,470 $ 767,584 $ 128,926 $ 487,775 $ 308,444
Dividends........ 0 0 0 0 0
----------- ----------- ---------- ---------- ---------
Total income....... 1,720,470 767,584 128,926 487,775 308,444
----------- ----------- ---------- ---------- ---------
Expenses:
Management fees
(Note 6)....... 168,630 108,888 17,748 54,521 33,847
12b-1 fees: (Note
6)
Class A........ 84,149 54,444 8,874 24,070 15,022
Class B........ 499 0 0 2,136 1,090
Transfer agency
fees and
expenses....... 56,834 17,424 5,292 15,214 13,103
Custodian fees
and expenses... 21,834 20,272 7,120 9,438 6,681
Directors'
fees........... 1,502 968 158 442 274
Registration
fees........... 2,175 4,184 809 882 882
Accounting and
legal fees..... 7,322 6,787 6,613 7,094 7,058
Printing and
postage........ 6,645 2,374 594 973 710
Other............ 1,210 310 42 492 412
----------- ----------- ---------- ---------- ---------
Gross expenses..... 350,800 215,651 47,250 115,262 79,079
Waiver of
management fees
(Note 6)....... (45,790) (24,734) (13,878) 0 (190)
Waiver of 12b-1
fees: (Note 6)
Class A........ (84,149) (54,444) (8,874) (9,705) (10,335)
Class B........ 0 0 0 0 0
Expense
reimbursement
(Note 6)......... (7,979) 0 0 (8,227) (8,272)
----------- ----------- ---------- ---------- ---------
Net expenses....... 212,882 136,473 24,498 97,330 60,282
----------- ----------- ---------- ---------- ---------
Net investment
income (loss).... 1,507,588 631,111 104,428 390,445 248,162
----------- ----------- ---------- ---------- ---------
REALIZED GAIN (LOSS) AND UNREALIZED
APPRECIATION (DEPRECIATION) ON
INVESTMENTS AND FOREIGN CURRENCY:
Realized gain
(loss):
Proceeds from
sales (including
premiums on
options
exercised)....... 230,488,758 63,902,000 12,910,300 3,494,737 3,077,787
Cost of
securities
sold........... (230,483,419) (63,902,000) (12,910,300) (3,437,157) (3,031,960)
Loss on closing
of future
contracts...... 0 0 0 0 0
Gain on closing
and expiration of
options
written.......... 0 0 0 0 0
Gain (loss) on
foreign currency
transactions..... 0 0 0 0 0
----------- ----------- ---------- ---------- ---------
Net realized gain
(loss)........... 5,339 0 0 57,580 45,827
----------- ----------- ---------- ---------- ---------
Unrealized
appreciation
(depreciation):
Beginning of
period......... 0 0 0 496,510 370,336
End of period.... 0 0 0 513,492 343,280
----------- ----------- ---------- ---------- ---------
Unrealized
appreciation
(depreciation)... 0 0 0 16,982 (27,056)
----------- ----------- ---------- ---------- ---------
Net realized gain
(loss) and
unrealized
appreciation
(depreciation) on
investments and
foreign currency... 5,339 0 0 74,562 18,771
----------- ----------- ---------- ---------- ---------
Net increase in net
assets resulting
from operations.... $ 1,512,927 $ 631,111 $ 104,428 $ 465,007 $ 266,933
=========== =========== ========== ========== =========
</TABLE>
(1) For the six months ended June 30, 1997 (unaudited).
(2) For the period April 30, 1997 (inception of operations) to June 30, 1997
(unaudited).
The accompanying notes are an integral part of these financial statements.
34
<PAGE> 36
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
----------------------------------------------------------------------------------------------------------------------
National U.S. Government
U.S. Government California Municipal and Mortgage Strategic Growth and
Intermediate Municipal Bond Securities Income Balanced Income
Fund(1) Bond Fund(1) Fund(1) Fund(1) Fund(1) Fund(1) Fund(1)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 208,425 $ 5,204,722 $ 1,452,294 $ 8,536,155 $ 1,215,324 $ 579,870 $ 375,572
0 0 0 0 10,917 399,757 877,048
---------- ---------- --------- ----------- ----------- --------- -----------
208,425 5,204,722 1,452,294 8,536,155 1,226,241 979,627 1,252,620
---------- ---------- --------- ----------- ----------- --------- -----------
18,342 493,880 138,975 603,399 108,376 137,355 533,971
7,843 217,447 60,430 266,783 30,867..... 42,134 184,195
1,482 21,133 8,221 22,469 15,775 20,763 52,378
12,194 54,352 25,059 114,894 22,513..... 28,067 79,550
3,548 53,229 17,600 93,256 41,631 15,704 52,896
149 3,996 1,125 4,886 642........ 872 3,589
882 1,193 1,039 1,042 3,819 2,897 2,398
7,031 7,859 7,241 8,050 8,142...... 7,186 7,771
542 7,735 2,733 15,641 2,713...... 4,588 15,333
416 7,709 2,231 9,527 1,203 1,222 11,730
---------- ---------- --------- ----------- ----------- --------- -----------
52,429 868,533 264,654 1,139,947 235,681 260,788 943,811
(2,240) 0 0 0 (107,905) 0 0
(7,840) 0 0 0 (30,867) 0 0
0 0 0 0 0 0 0
(8,291) (8,540) (7,975) (7,710) (38,873) (7,586) (6,205)
---------- ---------- --------- ----------- ----------- --------- -----------
34,058 859,993 256,679 1,132,237 58,036 253,202 937,606
---------- ---------- --------- ----------- ----------- --------- -----------
174,367 4,344,729 1,195,615 7,403,918 1,168,205 726,425 315,014
---------- ---------- --------- ----------- ----------- --------- -----------
766,660 16,347,264 8,389,185 20,680,464 31,844,261 2,668,435 82,719,234
(777,825) (15,798,480) (8,116,971) (20,972,011) (31,827,782) (2,247,705) (73,455,158)
0 0 0 0 (375) 0 0
0 0 0 0 59,074..... 0 64,226
0 0 0 0 78,857 0 0
---------- ---------- --------- ----------- ----------- --------- -----------
(11,165) 548,784 272,214 (291,547) 154,035.... 420,730 9,328,302
---------- ---------- --------- ----------- ----------- --------- -----------
(124,922) 10,669,890 2,809,382 1,932,805 462,501 3,412,371 26,292,047
(110,018) 10,143,553 2,757,399 2,472,435 389,195 5,785,554 35,525,774
---------- ---------- --------- ----------- ----------- --------- -----------
14,904 (526,337) (51,983) 539,630 (73,306) 2,373,183 9,233,727
---------- ---------- --------- ----------- ----------- --------- -----------
3,739 22,447 220,231 248,083 80,729 2,793,913 18,562,029
---------- ---------- --------- ----------- ----------- --------- -----------
$ 178,106 $ 4,367,176 $ 1,415,846 $ 7,652,001 $ 1,248,934 $ 3,520,338 $18,877,043
========== ========== ========= =========== =========== ========= ===========
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Strategic Global Emerging
Growth Growth Growth
Fund(1) Fund(1) Fund(2)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 219,984 $ 59,488 $ 5,319
169,813 183,629 288
---------- ---------- --------
389,797 243,117 5,607
---------- ---------- --------
128,729 87,036 3,847
37,038 23,232 1,098
26,811 11,902 312
25,660 20,643 5,591
12,831 47,294 6,194
816 483 21
4,417 2,984 917
7,174 7,102 2,337
5,303 3,425 346
1,968 1,976 41
---------- ---------- --------
250,747 206,077 20,704
0 (3,454) (3,847)
0 (5,395) (1,098)
0 0 0
(5,448) (7,385) (8,404)
---------- ---------- --------
245,299 189,843 7,355
---------- ---------- --------
144,498 53,274 (1,748)
---------- ---------- --------
10,311,809 6,122,215 0
(9,029,289) (5,421,319) 0
0 0 0
0 0 0
0 (17,573) 0
---------- ---------- --------
1,282,520 683,323 0
---------- ---------- --------
3,487,512 1,001,989 0
8,026,059 3,998,950 583,487
---------- ---------- --------
4,538,547 2,996,961 583,487
---------- ---------- --------
5,821,067 3,680,284 583,487
---------- ---------- --------
$ 5,965,565 $ 3,733,558 $581,739
========== ========== ========
</TABLE>
35
<PAGE> 37
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds
--------------------------------------------------------------------------------------
California Municipal Money National Municipal Money
U.S. Treasury Money Fund Fund Fund
--------------------------------------------------------------------------------------
1997(1) 1996(2) 1997(1) 1996(2) 1997(1) 1996(2)
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income (loss).... $ 1,507,588 $ 2,749,893 $ 631,111 $ 1,056,490 $ 104,428 $ 215,006
Net realized gain
(loss) on
investments and
foreign
currency......... 5,339 (10,178) 0 (85) 0 (377)
Net unrealized
appreciation
(depreciation) on
investments and
foreign
currency......... 0 0 0 0 0 0
---------- ---------- ---------- ---------- --------- --------
Net increase in
net assets
resulting from
operations....... 1,512,927 2,739,715 631,111 1,056,405 104,428 214,629
---------- ---------- ---------- ---------- --------- --------
DISTRIBUTIONS PAID
TO SHAREHOLDERS:
Dividends from
net investment
income:
Class A........ (1,505,090) (2,745,028) (631,111) (1,056,490) (104,428) (215,006)
Class B........ (2,498) (4,865) NA NA NA NA
Distributions
from net realized
gain on
investments:
Class A........ 0 0 0 0 0 0
Class B........ 0 0 NA NA NA NA
Distributions in
excess of net
realized gain on
investments:
Class A........ 0 0 0 0 0 0
Class B........ 0 0 NA NA NA NA
---------- ---------- ---------- ---------- --------- --------
Total
distributions:
Class A........ (1,505,090) (2,745,028) (631,111) (1,056,490) (104,428) (215,006)
Class B........ (2,498) (4,865) NA NA NA NA
---------- ---------- ---------- ---------- --------- --------
CAPITAL SHARE
TRANSACTIONS:
(NOTE 4)
Proceeds from
shares sold:
Class A........ 38,965,556 75,634,378 23,710,737 20,788,077 3,185,326 5,107,216
Class B........ 267,906 168,652 NA NA NA NA
Proceeds from
shares issued in
reinvestment of
net investment
income dividends
and capital gain
dividends:
Class A........ 1,413,885 2,546,526 602,329 1,001,220 96,166 198,379
Class B........ 2,450 4,762 NA NA NA NA
Cost of shares
redeemed:
Class A........ (39,007,221) (64,076,015) (13,402,970) (23,873,824) (3,110,202) (5,651,446)
Class B........ (233,949) (166,383) NA NA NA NA
---------- ---------- ---------- ---------- --------- --------
Net increase
(decrease) in net
assets resulting
from capital
share
transactions:
Class A........ 1,372,220 14,104,889 10,910,096 (2,084,527) 171,290 (345,851)
Class B........ 36,407 7,031 NA NA NA NA
---------- ---------- ---------- ---------- --------- --------
Net increase
(decrease) in net
assets........... 1,413,966 14,101,742 10,910,096 (2,084,612) 171,290 (346,228)
NET ASSETS:
Beginning of
period........... 65,599,452 51,497,710 37,354,679 39,439,291 7,513,697 7,859,925
---------- ---------- ---------- ---------- --------- --------
End of period.... $ 67,013,418 $ 65,599,452 $ 48,264,775 $ 37,354,679 $ 7,684,987 $7,513,697
========== ========== ========== ========== ========= ========
</TABLE>
(1) For the six months ended June 30, 1997.
(2) For the year ended December 31, 1996.
The accompanying notes are an integral part of these financial statements.
36
<PAGE> 38
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
----------------------------------------------------------------------------------------------------------------
California Insured Intermediate National Insured Intermediate U.S. Government
Municipal Fund Municipal Fund Intermediate Fund
----------------------------------------------------------------------------------------------------------------
1997(1) 1996(2) 1997(1) 1996(2) 1997(1) 1996(2)
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
$ 390,445 $ 860,543 $ 248,162 $ 591,092 $ 174,367 $ 452,724
57,580 146,425 45,827 61,110 (11,165) 12,028
16,982 (238,212) (27,056) (169,483) 14,904 (177,117)
--------- --------- --------- --------- --------- ---------
465,007 768,756 266,933 482,719 178,106 287,635
--------- --------- --------- --------- --------- ---------
(380,907) (843,939) (243,223) (581,184) (165,414) (430,630)
(9,538) (16,604) (4,939) (9,908) (8,953) (22,094)
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
--------- --------- --------- --------- --------- ---------
(380,907) (843,939) (243,223) (581,184) (165,414) (430,630)
(9,538) (16,604) (4,939) (9,908) (8,953) (22,094)
--------- --------- --------- --------- --------- ---------
895,560 1,429,899 45,416 960,407 175,588 849,508
1,500 140,750 7,959 58,916 0 151,204
258,176 554,405 149,383 358,574 91,265 260,026
8,492 14,726 4,049 9,631 7,584 19,946
(2,779,642) (6,469,246) (1,503,928) (4,107,158) (2,115,317) (1,992,652)
(48,543) (6,221) (2,000) (65,724) (141,891) (103,597)
--------- --------- --------- --------- --------- ---------
(1,625,906) (4,484,942) (1,309,129) (2,788,177) (1,848,464) (883,118)
(38,551) 149,255 10,008 2,823 (134,307) 67,553
--------- --------- --------- --------- --------- ---------
(1,589,895) (4,427,474) (1,280,350) (2,893,727) (1,979,032) (980,654)
20,598,023 25,025,497 13,172,444 16,066,171 7,654,516 8,635,170
--------- --------- --------- --------- --------- ---------
$19,008,128 $20,598,023 $11,892,094 $13,172,444 $ 5,675,484 $ 7,654,516
========= ========= ========= ========= ========= =========
<CAPTION>
Bond Funds
----------------------------------------------------------------------------------------------------------------
California Municipal
Bond Fund
----------------------------------------------------------------------------------------------------------------
1997(1) 1996(2)
(unaudited)
<S> <C> <C>
$ 4,344,729 $ 8,802,217
548,784 1,168,842
(526,337) (2,969,666)
---------- ----------
4,367,176 7,001,393
---------- ----------
(4,221,964) (8,617,419)
(122,765) (184,798)
0 0
0 0
0 0
0 0
---------- ----------
(4,221,964) (8,617,419)
(122,765) (184,798)
---------- ----------
7,604,982 14,885,665
1,086,058 2,236,769
2,939,231 6,059,281
92,437 142,396
(14,123,855) (25,832,437)
(406,463) (182,019)
---------- ----------
(3,579,642) (4,887,491)
772,032 2,197,146
---------- ----------
(2,785,163) (4,491,169)
182,953,417 187,444,586
---------- ----------
$180,168,254 $182,953,417
========== ==========
</TABLE>
37
<PAGE> 39
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
--------------------------------------------------------------------------------------
National Municipal U.S. Government and Strategic Income
Bond Fund Mortgage Securities Fund Fund
--------------------------------------------------------------------------------------
1997(1) 1996(2) 1997(1) 1996(2) 1997(1) 1996(3)
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............ $ 1,195,615 $ 2,398,469 $ 7,403,918 $ 16,261,312 $ 1,168,205 $ 553,376
Net realized gain
(loss) on
investments and
foreign
currency.......... 272,214 518,915 (291,547) (1,491,838) 154,035 50,719
Net unrealized
appreciation
(depreciation) on
investments and
foreign
currency.......... (51,983) (1,130,455) 539,630 (4,326,727) (73,306) 462,501
--------- --------- ---------- ---------- --------- ---------
Net increase in
net assets
resulting from
operations........ 1,415,846 1,786,929 7,652,001 10,442,747 1,248,934 1,066,596
--------- --------- ---------- ---------- --------- ---------
DISTRIBUTIONS PAID
TO SHAREHOLDERS:
Dividends from net
investment income:
Class A......... (1,148,959) (2,337,023) (7,216,150) (15,943,843) (1,011,504) (502,136)
Class B......... (46,656) (61,446) (187,768) (317,469) (156,701) (51,240)
Distributions from
net realized gain
of investments:
Class A......... 0 (244,585) 0 0 0 (43,471)
Class B......... 0 (9,623) 0 0 0 (7,248)
Distributions in
excess of net
realized gain of
investments:
Class A......... 0 0 0 0 0 (18,565)
Class B......... 0 0 0 0 0 (3,096)
--------- --------- ---------- ---------- --------- ---------
Total
distributions:
Class A......... (1,148,959) (2,581,608) (7,216,150) (15,943,843) (1,011,504) (564,172)
Class B......... (46,656) (71,069) (187,768) (317,469) (156,701) (61,584)
--------- --------- ---------- ---------- --------- ---------
CAPITAL SHARE
TRANSACTIONS:
(NOTE 4)
Proceeds from
shares sold:
Class A......... 1,571,755 2,984,690 6,135,777 19,760,191 13,484,602 17,647,743
Class B......... 482,402 944,259 789,166 2,808,568 2,444,297 2,909,870
Proceeds from
shares issued in
reinvestment of
net investment
income dividends
and capital gain
dividends:
Class A......... 897,351 2,051,732 4,522,742 9,993,486 413,032 146,503
Class B......... 38,030 58,955 129,961 222,729 89,338 38,753
Cost of shares
redeemed:
Class A......... (4,467,342) (7,971,452) (28,181,641) (55,336,871) (1,612,083) (317,560)
Class B......... (21,477) (92,044) (570,375) (853,491) (294,504) (38,360)
--------- --------- ---------- ---------- --------- ---------
Net increase
(decrease) in net
assets resulting
from capital share
transactions:
Class A......... (1,998,236) (2,935,030) (17,523,122) (25,583,194) 12,285,551 17,476,686
Class B......... 498,955 911,170 348,752 2,177,806 2,239,131 2,910,263
--------- --------- ---------- ---------- --------- ---------
Net increase
(decrease) in net
assets............ (1,279,050) (2,889,608) (16,926,287) (29,223,953) 14,605,411 20,827,789
NET ASSETS:
Beginning of
period............ 51,548,451 54,438,059 230,189,346 259,413,299 20,827,789 0
--------- --------- ---------- ---------- --------- ---------
End of period..... $50,269,401 $51,548,451 $213,263,059 $230,189,346 $35,433,200 $20,827,789
=========== =========== ============ ============ ===========
</TABLE>
(1) For the six months ended June 30, 1997.
(2) For the year ended December 31, 1996.
(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.
(5) For the period April 30, 1997 (inception of operations) to June 30, 1997.
The accompanying notes are an integral part of these financial statements.
38
<PAGE> 40
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
-------------------------------------------------------------------------------------------------------------------------
Global
Balanced Fund Growth and Income Fund Strategic Growth Fund Growth Fund
-------------------------------------------------------------------------------------------------------------------------
1997(1) 1996(2) 1997(1) 1996(2) 1997(1) 1996(2) 1997(1)
(unaudited) (unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
$ 726,425 $ 946,509 $ 315,014 $ 999,904 $ 144,498 $ 206,337 $ 53,274
420,730 890,777 9,328,302 9,131,529 1,282,520 2,797,477 683,323
2,373,183 1,902,885 9,233,727 12,724,191 4,538,547 1,529,213 2,996,961
--------- --------- ---------- ---------- --------- --------- ---------
3,520,338 3,740,171 18,877,043 22,855,624 5,965,565 4,533,027 3,733,558
--------- --------- ---------- ---------- --------- --------- ---------
(634,044) (824,900) (331,650) (966,669) 0 (181,354) 0
(92,373) (121,604) 0 (33,241) 0 (24,971) 0
0 (762,138) 0 (8,366,846) 0 (2,225,041) 0
0 (125,529) 0 (753,594) 0 (570,429) 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
--------- --------- ---------- ---------- --------- --------- ---------
(634,044) (1,587,038) (331,650) (9,333,515) 0 (2,406,395) 0
(92,373) (247,133) 0 (786,835) 0 (595,400) 0
--------- --------- ---------- ---------- --------- --------- ---------
8,443,925 16,897,407 19,258,800 47,873,675 12,981,299 10,438,012 8,002,158
1,461,858 2,961,819 2,128,999 7,307,370 2,150,369 2,664,228 1,322,855
598,193 1,486,308 325,618 9,153,241 0 2,287,390 0
83,883 231,526 0 762,322 0 592,938 0
(2,541,950) (4,286,818) (17,416,394) (23,511,110) (2,311,025) (3,945,389) (937,678)
(359,330) (284,553) (518,781) (642,873) (286,923) (181,623) (68,642)
--------- --------- ---------- ---------- --------- --------- ---------
6,500,168 14,096,897 2,168,024 33,515,806 10,670,274 8,780,013 7,064,480
1,186,411 2,908,792 1,610,218 7,426,819 1,863,446 3,075,543 1,254,213
--------- --------- ---------- ---------- --------- --------- ---------
10,480,500 18,911,689 22,323,635 53,677,899 18,499,285 13,386,788 12,052,251
34,090,847 15,179,158 151,031,014 97,353,115 27,942,133 14,555,345 15,762,201
--------- --------- ---------- ---------- --------- --------- ---------
$44,571,347 $34,090,847 $173,354,649 $151,031,014 $46,441,418 $27,942,133 $27,814,452
========= ========= ========== ========== ========= ========= =========
<CAPTION>
Stock Funds
-------------------------------------------------------------------------------------------------------------------------
Global Emerging
Growth Fund Growth Fund
---------------------------------
1996(2) 1997(1)
(unaudited) (unaudited)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,416 $ (1,748)
373,289 0
1,001,989 583,487
--------- ---------
1,376,694 581,739
--------- ---------
(6,683) 0
0 0
(320,918) 0
(52,371) 0
(15,289) 0
(2,492) 0
--------- ---------
(342,890) 0
(54,863) 0
--------- ---------
12,713,597 3,856,151
2,049,552 523,980
282,062 0
54,793 0
(306,945) (12,265)
(9,799) 0
--------- ---------
12,688,714 3,843,886
2,094,546 523,980
--------- ---------
15,762,201 4,949,605
0 0
--------- ---------
$15,762,201 $4,949,605
=========== ==========
</TABLE>
39
<PAGE> 41
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds
-------------------------------------------------------------------------------------------
U.S. Treasury Money Fund
Class A Class B
-------------------------------------------------------------------------------------------
1997(1) 1996(2) 1995(2) 1994(2) 1993(2) 1992(3) 1997(1) 1996(2)
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ----- ----- ----- ----- ----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).......... 0.022 0.046 0.050 0.036 0.030 0.023 0.019 0.040
Net gain or loss on securities (both
realized and unrealized).............. 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
----- ----- ----- ----- ----- ----- ----- -----
Total from investment operations...... 0.022 0.046 0.050 0.036 0.030 0.023 0.019 0.040
----- ----- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS:
Dividends (from net investment
income)............................. (0.022) (0.046) (0.050) (0.036) (0.030) (0.023) (0.019) (0.040)
Distributions (from realized capital
gains)................................ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Distributions (in excess of realized
gains)................................ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
----- ----- ----- ----- ----- ----- ----- -----
Total distributions................... (0.022) (0.046) (0.050) (0.036) (0.030) (0.023) (0.019) (0.040)
----- ----- ----- ----- ----- ----- ----- -----
Net asset value, end of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===== ===== ===== ===== ===== ===== ===== =====
Total return(5)........................ 2.26% 4.74% 5.13% 3.67% 3.03% 2.32% 1.88% 4.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)..... $66,857 $65,479 $51,385 $33,448 $14,168 $ 7,632 $ 157 $ 120
Ratio of expenses to average net
assets (annualized)(7)................ 0.63% 0.52% 0.64% 0.46% 0.15% 0.00% 1.38% 1.18%
Ratio of net investment income to
average net assets (annualized)....... 4.51% 4.63% 4.99% 3.75% 2.98% 3.32% 3.76% 3.95%
Portfolio turnover rate (Note 5)...... -- -- -- -- -- -- -- --
Average commission rate paid(6)....... -- -- -- -- -- -- -- --
<CAPTION>
Money Funds
-------------------------------------------------------------------------------------------
U.S. Treasury Money Fund
Class B
-------------------------------------------------------------------------------------------
1995(2) 1994(2)
1995(2) 1994(4)
<S> <C><C> <C> <C>
Net asset value, beginning of period... $ 1.00 $ 1.00
----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).......... 0.044 0.018
Net gain or loss on securities (both
realized and unrealized).............. 0.000 0.000
----- -----
Total from investment operations...... 0.044 0.018
----- -----
LESS DISTRIBUTIONS:
Dividends (from net investment
income)............................. (0.044) (0.018)
Distributions (from realized capital
gains)................................ 0.000 0.000
Distributions (in excess of realized
gains)................................ 0.000 0.000
----- -----
Total distributions................... (0.044) (0.018)
----- -----
Net asset value, end of period......... $ 1.00 $ 1.00
===== =====
Total return(5)........................ 4.45% 3.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)..... $ 113 $ 28
Ratio of expenses to average net
assets (annualized)(7)................ 1.24% 1.13%
Ratio of net investment income to
average net assets (annualized)....... 4.34% 3.71%
Portfolio turnover rate (Note 5)...... -- --
Average commission rate paid(6)....... -- --
</TABLE>
(1) For the six months ended June 30.
(2) For the year ended December 31.
(3) For the period May 1, 1992 (inception of operations) to December 31, 1992.
(4) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(5) Total returns assume purchase at net asset value (without sales charge) at
the beginning of each period. Returns for periods less than a full year are
aggregate (non-annualized) returns.
(6) Initiating with fiscal year 1996, the Funds are required to disclose their
average commission rate per share for purchases and sales of equity
securities.
(7) Effective January 10, 1990, the Distributor and Adviser for the Atlas Funds
agreed to temporarily cap (or waive) their management and 12b-1 fees and to
absorb other operating expenses. Had such action not been taken, the ratio
of expenses to average net assets (annualized) would have been as follows:
<TABLE>
<CAPTION>
Class A Class B
Period Ended 1997 1996 1995 1994 1993 1992 1997 1996
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury Money Fund............................ 1.02% 1.02% 1.05% 1.08% 1.10% 1.37% 3.25% 3.25%
California Municipal Money Fund..................... 1.00% 1.00% 1.00% 1.00% 0.98% 1.03% NA NA
National Municipal Money Fund....................... 1.34% 1.32% 1.29% 1.25% 1.28% 1.35% NA NA
<CAPTION>
Class B
Period Ended 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Treasury Money Fund............................ 3.25% 3.25%
California Municipal Money Fund..................... NA NA
National Municipal Money Fund....................... NA NA
</TABLE>
The accompanying notes are an integral part of these financial statements.
40
<PAGE> 42
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
California Municipal Money Fund National Municipal Money Fund
Class A Class A
--------------------------------------------------------------------------------------------------------------------
1997(1) 1996(2) 1995(2) 1994(2) 1993(2) 1992(2) 1997(1) 1996(2) 1995(2) 1994(2)
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
0.14 0.028 0.032 0.024 0.021 0.027 0.015 0.029 0.032 0.026
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
0.014 0.028 0.032 0.024 0.021 0.027 0.015 0.029 0.032 0.026
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(0.014) (0.028) (0.032) (0.024) (0.021) (0.027) (0.015) (0.029) (0.032) (0.026)
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(0.014) (0.028) (0.032) (0.024) (0.021) (0.027) (0.015) (0.029) (0.032) (0.026)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
1.45% 2.82% 3.22% 2.47% 2.13% 2.75% 1.48% 2.96% 3.26% 2.60%
$48,265 $37,355 $39,439 $42,979 $45,784 $55,890 $ 7,685 $ 7,514 $ 7,860 $10,110
0.63% 0.63% 0.67% 0.46% 0.48% 0.46% 0.70% 0.68% 0.75% 0.49%
2.92% 2.78% 3.18% 2.44% 2.10% 2.73% 2.96% 2.92% 3.21% 2.57%
-- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- --
<CAPTION>
National Municipal Money Fund
Class A
--------------------------------------------------------------------------------------------------------------------
1993(2) 1992(2)
<S> <C> <C>
$ 1.00 $ 1.00
------ ------
0.022 0.029
0.000 0.000
------ ------
0.022 0.029
------ ------
(0.022) (0.029)
0.000 0.000
0.000 0.000
------ ------
(0.022) (0.029)
------ ------
$ 1.00 $ 1.00
====== ======
2.25% 2.94%
$ 9,424 $ 8,139
0.55% 0.54%
2.23% 2.92%
-- --
-- --
</TABLE>
41
<PAGE> 43
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
---------------------------------------------------------------------------------------------
California Insured Intermediate Municipal Fund
Class A Class B
---------------------------------------------------------------------------------------------
1997(1) 1996(2) 1995(2) 1994(2) 1993(3) 1997(1) 1996(2) 1995(2) 1994(4)
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................... $ 10.36 $ 10.37 $ 9.64 $ 10.48 $ 10.01 $10.35 $ 10.37 $ 9.64 $ 9.91
----- ----- ----- ----- ----- ---- ----- ----- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)......... 0.20 0.41 0.40 0.42 0.26 0.17 0.34 0.34 0.17
Net gain or loss on securities (both
realized and unrealized)............. 0.05 (0.01) 0.73 (0.84) 0.47 0.05 (0.02) 0.73 (0.27)
----- ----- ----- ----- ----- ---- ----- ----- ----
Total from investment operations..... 0.25 0.40 1.13 (0.42) 0.73 0.22 0.32 1.07 (0.10)
----- ----- ----- ----- ----- ---- ----- ----- ----
LESS DISTRIBUTIONS:
Dividends (from net investment
income).............................. (0.20) (0.41) (0.40) (0.42) (0.26) (0.17) (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 0.00 0.00
Distributions (in excess of realized
gains)............................... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- ----- ---- ----- ----- ----
Total distributions.................. (0.20) (0.41) (0.40) (0.42) (0.26) (0.17) (0.34) (0.34) (0.17)
----- ----- ----- ----- ----- ---- ----- ----- ----
Net asset value, end of period........ $ 10.41 $ 10.36 $ 10.37 $ 9.64 $ 10.48 $10.40 $ 10.35 $ 10.37 $ 9.64
===== ===== ===== ===== ===== ==== ===== ===== ====
Total return(6)....................... 2.49% 3.93% 11.84% -4.10% 7.31% 2.18% 3.14% 11.26% -1.02%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's).... $18,451 $20,005 $24,582 $23,634 $24,235 $ 557 $ 593 $ 443 $ 227
Ratio of expenses to average net
assets (annualized)(8)............... 0.97% 0.82% 0.77% 0.40% 0.32% 1.58% 1.50% 1.30% 1.08%
Ratio of net investment income to
average net assets (annualized)...... 3.99% 3.96% 3.90% 4.16% 4.25% 3.38% 3.28% 3.37% 3.62%
Portfolio turnover rate (Note 5)..... 9.92% 44.43% 59.28% 31.48% 5.73% 9.92% 44.43% 59.28%3 1.48%
Average commission rate paid(7)...... -- -- -- -- -- -- -- -- --
<CAPTION>
Bond Funds
--------------------------------------------
National Insured Intermediate Municipal Fund
Class A
--------------------------------------------
1997(1) 1996(2) 1995(2)
(unaudited)
<S> <C> <C> <C>
Net asset value, beginning of
period............................... $ 10.32 $ 10.37 $ 9.64
----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)......... 0.21 0.42 0.41
Net gain or loss on securities (both
realized and unrealized)............. 0.03 (0.05) 0.73
----- ----- -----
Total from investment operations..... 0.24 0.37 1.14
----- ----- -----
LESS DISTRIBUTIONS:
Dividends (from net investment
income).............................. (0.21) (0.42) (0.41)
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.................. (0.21) (0.42) (0.41)
----- ----- -----
Net asset value, end of period........ $ 10.35 $ 10.32 $ 10.37
===== ===== =====
Total return(6)....................... 2.34% 3.68% 12.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's).... $11,595 $12,886 $15,782
Ratio of expenses to average net
assets (annualized)(8)............... 0.97% 0.80% 0.77%
Ratio of net investment income to
average net assets (annualized)...... 4.08% 4.11% 4.06%
Portfolio turnover rate (Note 5)..... 14.85% 46.95% 84.85%
Average commission rate paid(7)...... -- -- --
</TABLE>
(1) For the six months ended June 30.
(2) For the year ended December 31.
(3) For the period June 1, 1993 (effective date of registration) to December 31,
1993.
(4) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(5) For the period October 5, 1992 (inception of operations) to December 31,
1992.
(6) Total returns assume purchase at net asset value (without sales charge) at
the beginning of each period. Returns for periods less than a full year are
aggregate (non-annualized) returns.
(7) Initiating with fiscal year 1996, the Funds are required to disclose their
average commission rate per share for purchases and sales of equity
securities.
(8) Effective January 10, 1990, the Distributor and Adviser for the Atlas Funds
agreed to temporarily cap (or waive) their management and 12b-1 fees and to
absorb other operating expenses. Had such action not been taken, the ratio
of expenses to average net assets (annualized) would have been as follows:
<TABLE>
<CAPTION>
Class A Class B
Period Ended 1997 1996 1995 1994 1993 1992 1997 1996
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
California Insured Intermediate Municipal Fund...... 1.07% 1.08% 1.11% 1.11% 1.26% NA 3.25% 3.25%
National Insured Intermediate Municipal Fund........ 1.15% 1.12% 1.19% 1.19% 1.39% NA 3.25% 3.25%
U.S. Government Intermediate Fund................... 1.31% 1.24% 1.32% 1.28% 1.26% 2.09% 3.25% 3.25%
<CAPTION>
Period Ended 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California Insured Intermediate Municipal Fund...... 3.25% 3.25%
National Insured Intermediate Municipal Fund........ 3.25% 3.25%
U.S. Government Intermediate Fund................... 3.25% 3.25%
</TABLE>
The accompanying notes are an integral part of these financial statements.
42
<PAGE> 44
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
--------------------------------------------------------------------------------------------------------------------------------
National Insured Intermediate
Municipal Fund (continued) U.S. Government Intermediate Fund
Class A (continued) Class B Class A
--------------------------------------------------------------------------------------------------------------------------------
1994(2) 1993(3) 1997(1) 1996(2) 1995(2) 1994(4) 1997(1) 1996(2) 1995(2) 1994(2) 1993(2) 1992(5)
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10.48 $10.02 $10.33 $10.38 $ 9.65 $ 9.91 $ 9.58 $ 9.76 $ 9.32 $10.03 $ 9.69 $10.00
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
0.42 0.26 0.17 0.35 0.36 0.18 0.25 0.54 0.48 0.46 0.51 0.13
(0.84) 0.46 0.02 (0.05) 0.73 (0.26) 0.01 (0.18) 0.44 (0.71) 0.41 (0.31)
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
(0.42) 0.72 0.19 0.30 1.09 (0.08) 0.26 0.36 0.92 (0.25) 0.92 (0.18)
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
(0.42) (0.26) (0.17) (0.35) (0.36) (0.18) (0.25) (0.54) (0.48) (0.46) (0.51) (0.13)
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.07) 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
(0.42) (0.26) (0.17) (0.35) (0.36) (0.18) (0.25) (0.54) (0.48) (0.46) (0.58) (0.13)
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
$ 9.64 $10.48 $10.35 $10.33 $10.38 $ 9.65 $ 9.59 $ 9.58 $ 9.76 $ 9.32 $10.03 $ 9.69
===== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ====
-4.05% 7.25% 1.91% 2.99% 11.43% -0.87% 2.77% 3.81% 10.12% -2.51% 9.64% -1.83%
$16,224 $15,535 $ 297 $ 286 $ 284 $ 186 $5,322 $7,168 $8,209 $9,699 $8,930 $3,235
0.43% 0.35% 1.63% 1.48% 1.29% 1.09% 0.99% 0.59% 0.69% 0.43% 0.23% 0.00%
4.22% 4.28% 3.43% 3.44% 3.54% 3.72% 5.32% 5.61% 5.03% 4.80% 4.98% 5.50%
32.26% 0.00% 14.86% 46.95% 84.85% 32.26% 0.00% 46.51% 82.88% 55.09% 37.80% 0.00%
-- -- -- -- -- -- -- -- -- -- -- --
<CAPTION>
Bond Funds
--------------------------------------------------------------------------------------------------------------------------------
U.S. Government Intermediate Fund
Class B
--------------------------------------------------------------------------------------------------------------------------------
1997(1) 1996(2) 1995(2) 1994(4)
(unaudited)
<S> <C> <C> <C> <C>
$9.58 $9.76 $9.32 $9.48
---- ---- ---- ----
0.22 0.47 0.43 0.19
0.01 (0.18) 0.44 (0.16)
---- ---- ---- ----
0.23 0.29 0.87 0.03
---- ---- ---- ----
(0.22) (0.47) (0.43) (0.19)
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
---- ---- ---- ----
(0.22) (0.47) (0.43) (0.19)
---- ---- ---- ----
$9.59 $9.58 $9.76 $9.32
==== ==== ==== ====
2.40% 3.12% 9.54% 0.36%
$ 353 $ 487 $ 426 $ 321
1.73% 1.29% 1.21% 1.08%
4.57% 4.92% 4.53% 4.24%
0.00% 46.51% 82.88% 55.09%
-- -- -- --
</TABLE>
43
<PAGE> 45
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
------------------------------------------------------------------------------------
California Municipal Bond Fund Class
Class A B
------------------------------------------------------------------------------------
1997(1) 1996(2) 1995(2) 1994(2) 1993(2) 1992(2) 1997(1)
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $ 11.15 $ 11.26 $ 10.31 $ 11.56 $ 10.74 $ 10.64 $11.15
------ ------ ------ ------ ------ ------ ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).......... 0.27 0.53 0.54 0.59 0.59 0.60 0.24
Net gain or loss on securities (both
realized and unrealized).............. 0.00 (0.11) 0.95 (1.25) 0.83 0.21 0.01
------ ------ ------ ------ ------ ------ ----
Total from investment operations...... 0.27 0.42 1.49 (0.66) 1.42 0.81 0.25
------ ------ ------ ------ ------ ------ ----
LESS DISTRIBUTIONS:
Dividends (from net investment
income)............................... (0.27) (0.53) (0.54) (0.59) (0.59) (0.60) (0.24)
Distributions (from realized capital
gains)................................ 0.00 0.00 0.00 0.00 (0.01) (0.11) 0.00
Distributions (in excess of realized
gains)................................ 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------ ------ ----
Total distributions................... (0.27) (0.53) (0.54) (0.59) (0.60) (0.71) (0.24)
------ ------ ------ ------ ------ ------ ----
Net asset value, end of period......... $ 11.15 $ 11.15 $ 11.26 $ 10.31 $ 11.56 $ 10.74 $11.16
====== ====== ====== ====== ====== ====== ====
Total return(4)........................ 2.45% 3.90% 14.76% -5.83% 13.52% 7.86% 2.29%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)....... $174,030 $177,593 $184,283 $171,768 $197,394 $141,108 $6,138
Ratio of expenses to average net
assets (annualized)(6)................ 0.95% 0.96% 0.93% 0.57% 0.53% 0.54% 1.45%
Ratio of net investment income to
average net assets (annualized)....... 4.90% 4.82% 4.98% 5.43% 5.25% 5.66% 4.39%
Portfolio turnover rate (Note 5)...... 6.99% 29.28% 25.90% 30.32% 7.44% 46.55% 6.99%
Average commission rate paid(5)....... -- -- -- -- -- -- --
- ----------------------------------
<CAPTION>
Bond Funds
------------------------------------------------------------------------------------
California Municipal Bond Fund National Municipal Bond Fund
Class A
------------------------------------------------------------------------------------
1996(2) 1995(2) 1994(2) 1997(1) 1996(2) 1995(2)
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $11.26 $10.32 $10.74 $ 11.21 $ 11.39 $ 10.41
---- ---- ---- ----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).......... 0.48 0.48 0.25 0.27 0.52 0.53
Net gain or loss on securities (both
realized and unrealized).............. (0.11) 0.94 (0.42) 0.05 (0.12) 0.98
---- ---- ---- ----- ----- -----
Total from investment operations...... 0.37 1.42 (0.17) 0.32 0.40 1.51
---- ---- ---- ----- ----- -----
LESS DISTRIBUTIONS:
Dividends (from net investment
income)............................... (0.48) (0.48) (0.25) (0.27) (0.52) (0.53)
Distributions (from realized capital
gains)................................ 0.00 0.00 0.00 0.00 (0.06) 0.00
Distributions (in excess of realized
gains)................................ 0.00 0.00 0.00 0.00 0.00 0.00
---- ---- ---- ----- ----- -----
Total distributions................... (0.48) (0.48) (0.25) (0.27) (0.58) (0.53)
---- ---- ---- ----- ----- -----
Net asset value, end of period......... $11.15 $11.26 $10.32 $ 11.26 $ 11.21 $ 11.39
==== ==== ==== ===== ===== =====
Total return(4)........................ 3.39% 14.05% -1.59% 2.86% 3.58% 14.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)....... $5,360 $3,162 $1,416 $47,806 $49,597 $53,387
Ratio of expenses to average net
assets (annualized)(6)................ 1.46% 1.46% 1.28% 1.00% 1.01% 0.91%
Ratio of net investment income to
average net assets (annualized)....... 4.33% 4.42% 4.91% 4.79% 4.63% 4.79%
Portfolio turnover rate (Note 5)...... 29.28% 25.90% 30.32% 15.31% 44.76% 53.43%
Average commission rate paid(5)....... -- -- -- -- -- --
- ----------------------------------
</TABLE>
(1) For the six months ended June 30.
(2) For the year ended December 31.
(3) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(4) 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.
(5) Initiating with fiscal year 1996, the Funds are required to disclose their
average commission rate per share
for purchases and sales of equity securities.
(6) 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 1997 1996 1995 1994 1993 1992 1997
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
California Municipal Bond Fund............................... 0.95% 0.96% 0.96% 0.97% 0.98% 1.04% 1.76%
National Municipal Bond Fund................................. 1.00% 1.01% 1.05% 1.06% 1.06% 1.16% 2.23%
U.S. Government and Mortgage Securities Fund................. 1.03% 1.03% 1.04% 1.05% 1.05% 1.12% 1.79%
<CAPTION>
Class B
Period Ended 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California Municipal Bond Fund............................... 1.83% 2.24% 3.25%
National Municipal Bond Fund................................. 2.29% 3.25% 3.25%
U.S. Government and Mortgage Securities Fund................. 1.82% 2.27% 3.25%
</TABLE>
The accompanying notes are an integral part of these financial statements.
44
<PAGE> 46
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
U.S. Government and Mortgage
National Municipal Securities Fund
Bond Fund (continued)
Class A (continued) Class B Class A
------------------------------------------------------------------------------------------------------------------
1994(2) 1993(2) 1992(2) 1997(1) 1996(2) 1995(2) 1994(3) 1997(1) 1996(2) 1995(2)
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 11.61 $ 10.80 $ 10.61 $11.21 $11.39 $10.41 $10.76 $ 10.07 $ 10.30 $ 9.55
----- ----- ----- ---- ---- ---- ---- ----- ----- -----
0.58 0.60 0.60 0.24 0.46 0.47 0.24 0.34 0.67 0.69
(1.20) 0.82 0.32 0.06 (0.12) 0.98 (0.35) 0.02 (0.23) 0.75
----- ----- ----- ---- ---- ---- ---- ----- ----- -----
(0.62) 1.42 0.92 0.30 0.34 1.45 (0.11) 0.36 0.44 1.44
----- ----- ----- ---- ---- ---- ---- ----- ----- -----
(0.58) (0.60) (0.60) (0.24) (0.46) (0.47) (0.24) (0.34) (0.67) (0.69)
0.00 (0.01) (0.13) 0.00 (0.06) 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ---- ---- ---- ---- ----- ----- -----
(0.58) (0.61) (0.73) (0.24) (0.52) (0.47) (0.24) (0.34) (0.67) (0.69)
----- ----- ----- ---- ---- ---- ---- ----- ----- -----
$ 10.41 $ 11.61 $ 10.80 $11.27 $11.21 $11.39 $10.41 $ 10.09 $ 10.07 $ 10.30
===== ===== ===== ==== ==== ==== ==== ===== ===== =====
-5.41% 13.39% 8.97% 2.69% 3.07% 14.16% -0.99% 3.64% 4.50% 15.50%
$50,037 $57,590 $39,463 $2,464 $1,952 $1,051 $ 342 $207,017 $224,301 $255,614
0.57% 0.50% 0.54% 1.50% 1.51% 1.44% 1.28% 1.03% 1.03% 1.02%
5.35% 5.29% 5.61% 4.29% 4.14% 4.22% 4.72% 6.82% 6.67% 6.90%
37.52% 3.72% 39.20% 15.31% 44.76% 54.30% 37.52% 0.45% 27.45% 48.39%
-- -- -- -- -- -- -- -- -- --
<CAPTION>
------------------------------------------------------------------------------------------------------------------
U.S. Government and Mortgage
Securities Fund
Class A Class B
------------------------------------------------------------------------------------------------------------------
1994(2) 1993(2) 1992(2) 1997(1) 1996(2) 1995(2) 1994(3)
(unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10.60 $ 10.57 $ 10.59 $10.07 $10.30 $ 9.55 $ 9.80
----- ----- ----- ---- ---- ---- ----
0.70 0.74 0.82 0.31 0.62 0.64 0.32
(1.05) 0.03 (0.02) 0.02 (0.23) 0.75 (0.25)
----- ----- ----- ---- ---- ---- ----
(0.35) 0.77 0.80 0.33 0.39 1.39 0.07
----- ----- ----- ---- ---- ---- ----
(0.70) (0.74) (0.82) (0.31) (0.62) (0.64) (0.32)
0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ---- ---- ---- ----
(0.70) (0.74) (0.82) (0.31) (0.62) (0.64) (0.32)
----- ----- ----- ---- ---- ---- ----
$ 9.55 $ 10.60 $ 10.57 $10.09 $10.07 $10.30 $ 9.55
===== ===== ===== ==== ==== ==== ====
-3.30% 7.49% 7.85% 3.38% 3.98% 14.93% 0.69%
$245,715 $311,089 $209,593 $6,246 $5,888 $3,799 $1,451
0.80% 0.78% 0.60% 1.53% 1.53% 1.53% 1.43%
7.05% 6.93% 7.74% 6.32% 6.19% 6.34% 6.82%
16.33% 25.63% 25.50% 0.45% 27.45% 48.39% 16.33%
-- -- -- -- -- -- --
</TABLE>
45
<PAGE> 47
Financial Highlights selected data for a share outstanding throughout
each period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds Stock Funds
------------------------------------------------------------------------------------
Strategic Income Fund Balanced Fund
Class A Class B Class A
------------------------------------------------------------------------------------
1997(1) 1996(3) 1997(1) 1996(3) 1997(1) 1996(2) 1995(2) 1994(2)
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $ 5.16 $ 5.00 $ 5.15 $ 5.00 $ 12.18 $ 11.19 $ 9.23 $ 9.85
----- ----- ----- ----- ----- ----- ----- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).......... 0.21 0.25 0.19 0.23 0.23 0.42 0.42 0.44
Net gain or loss on securities (both
realized and unrealized).............. 0.00 0.18 0.00 0.17 0.88 1.32 2.02 (0.62)
----- ----- ----- ----- ----- ----- ----- ----
Total from investment operations...... 0.21 0.43 0.19 0.40 1.11 1.74 2.44 (0.18)
----- ----- ----- ----- ----- ----- ----- ----
LESS DISTRIBUTIONS:
Dividends (from net investment
income)............................. (0.21) (0.25) (0.19) (0.23) (0.23) (0.42) (0.42) (0.44)
Distributions (from realized capital
gains)................................ 0.00 (0.01) 0.00 (0.01) 0.00 (0.33) (0.06) 0.00
Distributions (in excess of realized
gains)................................ 0.00 (0.01) 0.00 (0.01) 0.00 0.00 0.00 0.00
----- ----- ----- ----- ----- ----- ----- ----
Total distributions................... (0.21) (0.27) (0.19) (0.25) (0.23) (0.75) (0.48) (0.44)
----- ----- ----- ----- ----- ----- ----- ----
Net asset value, end of period......... $ 5.16 $ 5.16 $ 5.15 $ 5.15 $ 13.06 $ 12.18 $ 11.19 $ 9.23
===== ===== ===== ===== ===== ===== ===== ====
Total return(6)........................ 4.20% 8.89% 3.82% 8.25% 9.17% 15.81% 26.76% -1.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)..... $30,220 $17,863 $ 5,213 $ 2,964 $38,192 $29,289 $13,547 $9,654
Ratio of expenses to average net
assets (annualized)(8)................ 0.30% 0.02% 1.04% 0.74% 1.23% 1.28% 1.48% 0.80%
Ratio of net investment income to
average net assets (annualized)....... 8.26% 8.19% 7.51% 7.47% 3.80% 3.86% 4.15% 4.85%
Portfolio turnover rate (Note 5)...... 103.30% 187.15% 103.30% 187.15% 8.63% 41.41% 25.84% 29.19%
Average commission rate paid(7)....... -- -- -- -- $0.0580 $0.0591 -- --
- ----------------------------------
<CAPTION>
Stock Funds
------------------------------------------------------------------------------------
Balanced Fund
Class A Class B
------------------------------------------------------------------------------------
1993(1) 1997(1) 1996(2) 1995(2)
4) 1997(1) 1996(2) 1995(2)
(unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $10.00 $ 12.15 $ 11.17 $ 9.22
---- ----- ----- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).......... 0.09 0.20 0.36 0.35
Net gain or loss on securities (both
realized and unrealized).............. (0.15) 0.87 1.32 2.03
---- ----- ----- ----
Total from investment operations...... (0.06) 1.07 1.68 2.38
---- ----- ----- ----
LESS DISTRIBUTIONS:
Dividends (from net investment
income)............................. (0.09) (0.20) (0.37) (0.37)
Distributions (from realized capital
gains)................................ 0.00 0.00 (0.33) (0.06)
Distributions (in excess of realized
gains)................................ 0.00 0.00 0.00 0.00
---- ----- ----- ----
Total distributions................... (0.09) (0.20) (0.70) (0.43)
---- ----- ----- ----
Net asset value, end of period......... $ 9.85 $ 13.02 $ 12.15 $11.17
==== ===== ===== ====
Total return(6)........................ -0.62% 8.85% 15.25% 26.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)..... $5,638 $ 6,379 $ 4,802 $1,632
Ratio of expenses to average net
assets (annualized)(8)................ 0.00% 1.73% 1.77% 1.99%
Ratio of net investment income to
average net assets (annualized)....... 5.02% 3.31% 3.37% 3.66%
Portfolio turnover rate (Note 5)...... 0.00% 8.63% 41.41% 25.84%
Average commission rate paid(7)....... -- $0.0580 $0.0591 --
- ----------------------------------
</TABLE>
(1) For the six months ended June 30.
(2) For the year ended December 31.
(3) For the period May 20, 1996 (inception of operations) to December 31, 1996.
(4) For the period October 1, 1993 (inception of operations) to December 31,
1993.
(5) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(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 1997 1996 1995 1994 1993 1992 1997 1996 1995
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Strategic Income Fund......................... 1.52% 1.85% NA NA NA NA 2.38% 3.25% NA
Balanced Fund................................. 1.23% 1.28% 1.53% 1.56% 2.04% NA 2.01% 2.21% 3.25%
Growth and Income Fund........................ 1.13% 1.16% 1.24% 1.28% 1.36% 1.45% 1.72% 1.83% 2.39%
<CAPTION>
Class B
Period Ended 1994
-------------------------------------------------
<S> <C>
Strategic Income Fund......................... NA
Balanced Fund................................. 3.25%
Growth and Income Fund........................ 3.25%
</TABLE>
46
<PAGE> 48
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Growth and Income Fund
Class A Class B
- -----------------------------------------------------------------------------------------------------------------------------------
1994(5) 1997(1) 1996(2) 1995(2) 1994(2) 1993(2) 1992(2) 1997(1) 1996(2) 1995(2) 1994(5)
(unaudited) (unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <S>
$ 9.41 $ 17.82 $ 15.91 $ 13.52 $ 14.01 $ 13.45 $ 13.52 $ 17.78 $ 15.89 $13.52 $13.04
----- ------- ------- ------ ------ ------ ------ ------ ------ ----- -----
0.10 0.04 0.14 0.20 0.16 0.22 0.25 (0.01) 0.06 0.10 0.02
(0.07) 2.15 3.06 4.26 (0.34) 1.17 (0.07) 2.14 3.05 4.26 0.67
----- ------- ------- ------ ------ ------ ------ ------ ------ ----- -----
0.03 2.19 3.20 4.46 (0.18) 1.39 0.18 2.13 3.11 4.36 0.69
----- ------- ------- ------ ------ ------ ------ ------ ------ ----- -----
(0.22) (0.04) (0.14) (0.20) (0.16) (0.22) (0.25) 0.00 (0.07) (0.12) (0.06)
0.00 0.00 (1.15) (1.87) (0.12) (0.59) 0.00 0.00 (1.15) (1.87) (0.12)
0.00 0.00 0.00 0.00 (0.03) (0.02) 0.00 0.00 0.00 0.00 (0.03)
----- ------- ------- ------ ------ ------ ------ ------ ------ ----- -----
(0.22) (0.04) (1.29) (2.07) (0.31) (0.83) (0.25) 0.00 (1.22) (1.99) (0.21)
----- ------- ------- ------ ------ ------ ------ ------ ------ ----- -----
$ 9.22 $ 19.97 $ 17.82 $ 15.91 $ 13.52 $ 14.01 $ 13.45 $ 19.91 $ 17.78 $15.89 $13.52
===== ======= ======= ====== ====== ====== ====== ====== ====== ===== =====
0.25% 12.31% 20.16% 33.06% -1.24% 10.40% 1.40% 11.98% 19.60% 32.32% 5.32%
$ 586 $157,710 $138,604 $93,061 $69,590 $59,392 $38,200 $15,645 $12,427 $4,292 $1,460
1.48% 1.13% 1.16% 1.24% 1.04% 1.06% 0.87% 1.63% 1.66% 1.75% 1.66%
4.43% 0.44% 0.82% 1.26% 1.21% 1.59% 2.00% -0.06% 0.29% 0.84% 0.71%
29.19% 55.19% 86.66% 125.28% 123.64% 178.91% 116.14% 55.19% 86.66% 125.28% 123.64%
-- $ 0.0604 $ 0.0602 -- -- -- -- $0.0604 $0.0602 -- --
</TABLE>
47
<PAGE> 49
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
-----------------------------------------------------------------
Strategic Growth Fund
Class A
-----------------------------------------------------------------
1997(1) 1996(2) 1995(2) 1994(2) 1993(3)
(unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 14.01 $ 12.69 $ 10.00 $10.14 $10.00
----- ----- ----- ---- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............... 0.07 0.13 0.10 0.11 0.05
Net gain or loss on securities (both
realized and unrealized)................... 2.25 2.88 2.82 (0.14) 0.14
----- ----- ----- ---- ----
Total from investment operations........... 2.32 3.01 2.92 (0.03) 0.19
----- ----- ----- ---- ----
LESS DISTRIBUTIONS:
Dividends (from net investment income)..... 0.00 (0.13) (0.09) (0.11) (0.05)
Distributions (from realized capital
gains)..................................... 0.00 (1.56) (0.14) 0.00 0.00
Distributions (in excess of realized
gains)..................................... 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ---- ----
Total distributions........................ 0.00 (1.69) (0.23) (0.11) (0.05)
----- ----- ----- ---- ----
Net asset value, end of period.............. $ 16.33 $ 14.01 $ 12.69 $10.00 $10.14
===== ===== ===== ==== ====
Total return(7)............................. 16.56% 23.72% 29.14% -0.28% 1.94%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's).......... $37,776 $22,253 $12,223 $6,471 $4,168
Ratio of expenses to average net assets
(annualized)(9)............................ 1.25% 1.31% 1.62% 1.17% 0.00%
Ratio of net investment income to
average net assets (annualized)............ 0.89% 1.08% 1.03% 1.25% 2.66%
Portfolio turnover rate (Note 5)........... 36.95% 119.87% 73.32% 54.01% 6.41%
Average commission rate paid(8)............ $0.0590 $0.0597 -- -- --
- --------------------------------------------
</TABLE>
(1) For the six months ended June 30.
(2) For the year ended December 31.
(3) For the period October 1, 1993 (inception of operations) to December 31,
1993.
(4) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(5) For the period April 30, 1996 (effective date of registration) to December
31, 1996.
(6) For the period April 30, 1997 (inception of operations) to June 30, 1997.
(7) 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.
(8) Initiating with fiscal year 1996, the Funds are required to disclose their
average commission rate per share
for purchases and sales of equity securities.
(9) Effective January 10, 1990, the Distributor and Adviser for the Atlas Funds
agreed to temporarily cap
(or waive) their management and bbl. 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 1997 1996 1995 1994 1993 1992 1997 1996 1995
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Strategic Growth Fund......................... 1.25% 1.31% 1.65% 1.74% 2.23% NA 1.90% 2.12% 3.25%
Global Growth Fund............................ 1.77% 2.36% NA NA NA NA 2.73% 3.25% NA
Emerging Growth Fund.......................... 3.72% NA NA NA NA NA 3.25% NA NA
<CAPTION>
Class B
Period Ended 1994
- ----------------------------------------------
<S> <C>
Strategic Growth Fund......................... 3.25%
Global Growth Fund............................ NA
Emerging Growth Fund.......................... NA
</TABLE>
48
<PAGE> 50
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Global Growth Fund Emerging Growth Fund
Class B Class A Class B Class A Class B
--------------------------------------------------------------------------------------------------------------------------------
1997(1) 1996(2) 1995(2) 1994(4) 1997(1) 1996(5) 1997(1) 1996(5) 1997(6) 1997(6)
(unaudited) (unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13.92 $ 12.63 $ 9.98 $ 9.92 $ 10.96 $ 10.14 $ 10.91 $ 10.14 $ 10.00 $ 10.00
---------
------ ------ ----- ----- -------- ------ -------- ------ --------
0.03 0.07 0.03 (0.05) 0.03 0.01 0.00 (0.03) (0.01) (0.02)
2.23 2.85 2.82 0.21 1.93 1.10 1.91 1.08 2.45 2.44
---------
------ ------ ----- ----- -------- ------ -------- ------ --------
2.26 2.92 2.85 0.16 1.96 1.11 1.91 1.05 2.44 2.42
---------
------ ------ ----- ----- -------- ------ -------- ------ --------
0.00 (0.07) (0.06) (0.10) 0.00 (0.01) 0.00 0.00 0.00 0.00
0.00 (1.56) (0.14) 0.00 0.00 (0.27) 0.00 (0.27) 0.00 0.00
0.00 0.00 0.00 0.00 0.00 (0.01) 0.00 (0.01) 0.00 0.00
---------
------ ------ ----- ----- -------- ------ -------- ------ --------
0.00 (1.63) (0.20) (0.10) 0.00 (0.29) 0.00 (0.28) 0.00 0.00
---------
------ ------ ----- ----- -------- ------ -------- ------ --------
$ 16.18 $ 13.92 $12.63 $ 9.98 $ 12.92 $ 10.96 $ 12.82 $ 10.91 $ 12.44 $ 12.42
====== ====== ===== ===== ====== ====== ===== ===== ====== ======
16.24% 23.13% 28.58% 1.57% 17.88% 10.89% 17.51% 10.34% 24.40% 24.20%
$ 8,666 $ 5,689 $2,332 $ 327 $23,823 $13,552 $ 3,991 $ 2,210 $ 4,380 $ 570
1.75% 1.81% 2.14% 1.80% 1.68% 1.51% 2.23% 2.24% 1.46% 2.20%
0.40% 0.59% 0.56% 0.82% 0.57% 0.13% 0.04% -0.75% -0.29% -1.17%
36.95% 119.87% 73.32% 54.01% 31.06% 64.89% 31.06% 64.89% 0.00% 0.00%
$0.0590 $0.0597 -- -- $0.0134 $0.0052 $0.0134 $0.0052 $0.0600 $0.0600
</TABLE>
49
<PAGE> 51
Notes to Financial Statements June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Atlas Assets, Inc., a Maryland corporation (the "Company"), is an open-end
management investment company registered under the Investment Company Act of
1940 ("1940 Act"), as amended, and offering fifteen 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, the Atlas Global Growth Fund, and the Atlas
Emerging 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. Stock and Bond Fund Class A shares are subject to a sales charge at the
time of purchase while all 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.
50
<PAGE> 52
- --------------------------------------------------------------------------------
b. Security Credit Risk: The Atlas Strategic Income Fund may invest any
amount of its assets in higher yielding, lower-rated debt securities,
including defaulted securities, which may be subject to a greater degree
of credit risk, greater market fluctuations and risk of loss of income
and principal than lower yielding, investment grade fixed income
securities. The Atlas Global Growth Fund and the Atlas Emerging Growth
Fund may also invest in such lower-rated securities, but only to a much
more limited extent. None of the three Funds holds any securities in
default as of June 30, 1997.
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, the Atlas Global Growth Fund and the Atlas Emerging 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 period ended
June 30, 1997 are net of foreign withholding taxes of $1,048, $8,723 and
$22,447, 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
June 30, 1997 were $35,071,743 for Atlas Government and Mortgage
Securities Fund and $2,445,180 for Atlas Strategic Income Fund.
51
<PAGE> 53
Notes to Financial Statements June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
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
52
<PAGE> 54
- --------------------------------------------------------------------------------
gains and losses arise from changes in the value of assets and liabilities
other than investments in securities at period end, resulting from changes
in the exchange rates.
o. The Funds have previously adopted Statement of Position 93-2,
"Determination, Disclosure, and Financial Statement Presentation of
Income, Capital Gain, and Return of Capital Distributions by Investment
Companies." In accordance with the statement, distributions in excess of
realized gains have been reflected in the Statements 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 sales 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 June 30, 1997, 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. Treasury Municipal Municipal Intermediate Intermediate
Money Fund Money Fund Money Fund Municipal Fund Municipal Fund
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Unrealized appreciation....... $ 0 $ 0 $ 0 $ 515 $ 343
Unrealized depreciation....... $ 0 $ 0 $ 0 $ (2) $ 0
----------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation)................ $ 0 $ 0 $ 0 $ 513 $ 343
==============================================================================================
Cost of securities for federal
income tax purposes........... $67,100 $50,303 $8,242 $18,165 $11,433
==============================================================================================
<CAPTION>
U.S. Government California
Intermediate Municipal
Fund Bond Fund
------------------------------------------
<S> <C> <C>
Unrealized appreciation....... $ 0 $ 10,432
Unrealized depreciation....... $ (110) $ (288)
-------------------------------------------
Net unrealized appreciation
(depreciation)................ $ (110) $ 10,144
============================================
Cost of securities for federal
income tax purposes........... $5,692 $167,151
===========================================
</TABLE>
<TABLE>
<CAPTION>
National U.S. Government Strategic
Municipal and Mortgage Strategic Income Balanced Growth and Growth
Bond Fund Securities Fund Fund Fund Income Fund Fund
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Unrealized appreciation....... $ 2,757 $ 3,488 $ 759 $ 6,067 $ 37,163 $ 8,513
Unrealized depreciation....... $ 0 $ (1,016) $ (370) $ (281) $ (1,637) $ (487)
-------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation)................ $ 2,757 $ 2,472 $ 389 $ 5,786 $ 35,526 $ 8,026
=================================================================================================
Cost of securities for federal
income tax purposes........... $48,303 $245,310 $36,424 $38,473 $137,998 $38,337
=================================================================================================
<CAPTION>
Global Growth Emerging Growth
Fund Fund
--------------------------------------------------------------------------
<S> <C> <C>
Unrealized appreciation....... $ 4,464 $ 624
Unrealized depreciation....... $ (465) $ (41)
-------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation)................ $ 3,999 $ 583
=====================================================================================
Cost of securities for federal
income tax purposes........... $23,868 $4,305
=====================================================================================
</TABLE>
53
<PAGE> 55
Notes to Financial Statements June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
4. SHARE TRANSACTIONS
The following is a summary of share transactions for the periods ended June
30, 1997 and December 31, 1996 (in 000's):
<TABLE>
<CAPTION>
U. S. Treasury California Municipal National Municipal
Money Fund Money Fund Money Fund
Class A Class B Class A Class A
1997 1996 1997 1996 1997 1996 1997 1996
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold............ 38,965 75,634 268 168 23,711 20,788 3,185 5,107
Issued in
reinvestment of
dividends....... 1,414 2,547 2 5 602 1,001 96 198
Redeemed........ (39,007) (64,076) (234) (166) (13,403) (23,874) (3,110) (5,651)
----------------------------------------------------------------------------------------------------
Net increase
(decrease).... 1,372 14,105 36 7 10,910 (2,085) 171 (346)
====================================================================================================
</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
1997 1996 1997 1996 1997 1996 1997 1996 1997 1996 1997 1996
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold......................... 87 140 0 14 4 93 1 6 18 89 0 16
Issued in reinvestment of
dividends.................... 25 54 1 1 15 35 0 1 10 27 1 2
Redeemed..................... (270) (632) (5) (1) (146) (402) 0 (7) (221) (209) (15) (11)
-------------------------------------------------------------------------------------------------
Net increase (decrease)...... (158) (438) (4) 14 (127) (274) 1 0 (193) (93) (14) 7
=================================================================================================
</TABLE>
<TABLE>
<CAPTION>
U. S. Government and
California Municipal National Municipal Mortgage
Bond Fund Bond Fund Securities Fund
Class A Class B Class A Class B Class A Class B
1997 1996 1997 1996 1997 1996 1997 1996 1997 1996 1997
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold......................... 688 1,356 98 204 141 267 43 85 611 1,962 79
Issued in reinvestment of
dividends.................... 266 550 9 13 80 184 4 5 451 995 13
Redeemed..................... (1,276) (2,346) (37) (17) (401) (715) (2) (8) (2,808) (5,514) (57)
-------------------------------------------------------------------------------------------------
Net increase (decrease)...... (322) (440) 70 200 (180) (264) 45 82 (1,746) (2,557) 35
=================================================================================================
<CAPTION>
U.S. Government on
Mortgage Securities Fund
Class B
1996
-------------------------------------------------------------------------------------------------
<S> <C>
Sold......................... 279
Issued in reinvestment of
dividends.................... 22
Redeemed..................... (85)
-------------------------------------------------------------------------------------------------
Net increase (decrease)...... 216
=================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Strategic Income Fund Balanced Fund Growth and Income Fund
Class A Class B Class A Class B Class A Class B
1997 1996(1) 1997 1996(1) 1997 1996 1997 1996 1997 1996 1997
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold......................... 2,631 3,495 477 575 676 1,435 117 254 1,045 2,756 115
Issued in reinvestment of
dividends.................... 81 29 18 7 47 123 7 19 17 514 0
Redeemed..................... (315) (62) (58) (7) (203) (364) (29) (24) (941) (1,343) (28)
------------------------------------------------------------------------------------------------
Net increase................. 2,397 3,462 437 575 520 1,194 95 249 121 1,927 87
================================================================================================
<CAPTION>
Class B
1996
------------------------------------------------------------------------------------------------
<S> <C>
Sold......................... 423
Issued in reinvestment of
dividends.................... 43
Redeemed..................... (37)
------------------------------------------------------------------------------------------------
Net increase................. 429
================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Strategic Growth Fund Global Growth Fund Emerging Growth Fund
Class A Class B Class A Class B Class A Class B
1997 1996 1997 1996 1997 1996(2) 1997 1996(2) 1997(3) 1996 1997(3) 1996
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold......................... 884 749 146 194 688 1,239 115 199 353 N/A 46 N/A
Issued in reinvestment of....
dividends.................... 0 163 0 43 0 26 0 5 0 N/A 0 N/A
Redeemed..................... (158) (287) (19) (13) (80) (29) (6) (1) (1) N/A 0 N/A
---------------------------------------------------------------------------------------------------
Net increase................. 726 625 127 224 608 1,236 109 203 352 N/A 46 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.
(3) For the period April 30, 1997 (inception of operations) to June 30, 1997.
54
<PAGE> 56
- --------------------------------------------------------------------------------
5. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding short-term securities)
for the periods ended June 30, 1997 were as follows (in 000's):
<TABLE>
<CAPTION>
California California Insured National Insured
U.S. Treasury Municipal National Municipal Intermediate Intermediate
Money Fund Money Fund Money Fund Municipal Fund Municipal Fund
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Purchases................... $ 0 $ 0 $ 0 $1,889 $1,760
Sales....................... $ 0 $ 0 $ 0 $3,495 $3,078
-------------------------------------------------------------------------------------------------
<CAPTION>
U.S.
Government California
Intermediate Municipal
Fund Bond Fund
<S> <C> <C> <C> <C>
Purchases................... $ 0 $12,241
Sales....................... $767 $16,347
</TABLE>
<TABLE>
<CAPTION>
National U.S. Government Strategic
Municipal and Mortgage Strategic Balanced Growth and Growth
Bond Fund Securities Fund Income Fund Fund Income Fund Fund
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Purchases................... $7,481 $ 1,003 $45,129 $7,326 $82,064 $19,063
Sales....................... $8,389 $20,680 $31,844 $2,668 $82,719 $10,312
---------------------------------------------------------------------------------------------
<CAPTION>
Global Emerging
Growth Fund Growth Fund(1)
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases................... $11,633 $3,226
Sales....................... $ 6,122 $ 0
---------------------------------------------------------------------------------------------
</TABLE>
(1) For the period April 30, 1997 (inception of operations) to June 30, 1997.
At June 30, 1997 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
and Atlas Emerging 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 and the Atlas Emerging 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
55
<PAGE> 57
Notes to Financial Statements June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
reimburse the Distributor up to a maximum of .25% per year of average daily
Class A net assets in each Fund, payable on a quarterly basis. Under the Class B
Plan, the maximum rate is .75% per year of average daily Class B net assets in
each Fund and is payable on a monthly basis.
Due to voluntary expense waivers in effect during the period ended June 30,
1997, 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 $212,707 and $0, respectively.
Management fees due the Adviser were reduced by $202,038. The Adviser also
absorbed $130,895 of other Fund expenses during the period. During the period
ended June 30, 1997, the Distributor received $454,488 for sales charges paid by
purchasers of Class A shares and $24,832 for contingent deferred sales charges
paid by sellers of Class B shares. Such sales charges are not an expense of the
Funds and thus are not reflected in the accompanying Statements of Operations.
The Adviser and Distributor are wholly owned subsidiaries of Golden West
Financial. Certain officers and directors of the Company are also officers
and/or directors of the Adviser and the Distributor.
At June 30, 1997, Golden West Financial owned 25,528 Class A shares in the
California Municipal Money Fund; 25,816 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; 3,072
Class A shares and 233 Class B shares in the California Municipal Bond Fund;
3,081 Class A shares and 233 Class B shares in the National Municipal Bond Fund;
3,533 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; 191 Class B shares
of Growth and Income Fund; 999,500 Class A shares and 500 Class B shares in the
Strategic Income Fund; 199,750 Class A shares and 250 Class B shares in the
Global Growth Fund; and 116,324 Class A shares and 154 Class B shares in the
Emerging 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
June 30, 1997 are as follows:
The California Municipal Money Fund has 13.01% in housing, 10.80% in
industrial development, 10.57% in public power and 10.39% in tax revenue
anticipation notes.
The National Municipal Money Fund has 15.99% in general obligation bonds and
13.01% in industrial development.
The California Insured Intermediate Municipal Fund has 20.97% in
transportation, 20.74% in education and 18.05% in water/sewer.
The National Insured Intermediate Municipal Fund has 39.89% in general
obligation bonds, 15.05% in prerefunded bonds, 14.89% in education and 11.21% in
health.
56
<PAGE> 58
- --------------------------------------------------------------------------------
The California Municipal Bond Fund has 22.10% in water/sewer, 11.83% in public
power and 10.81% in general obligation bonds.
The National Municipal Bond Fund has 23.61% in general obligation bonds,
17.39% in public power and 11.03% in education.
8. FORWARD CONTRACTS
As of June 30, 1997, Atlas Strategic Income Fund had the following open
forward contracts to purchase and sell foreign currencies:
<TABLE>
<CAPTION>
Contract Valuation Unrealized
Settlement Amount as Gain
Date (000's) of 6/30/97 (Loss)
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Strategic Income Fund:
Contracts to Buy:
- ----------------
Canadian Dollar....................................... 07/14/97-08/06/97 295 CAD $ 213,953 $ (3,026)
German Deutsche Mark.................................. 07/22/97-10/29/97 820 DEM 471,707 (8,301)
South African Rand.................................... 07/02/97-07/10/97 759 ZAR 167,076 (921)
Swiss Franc........................................... 07/02/97-10/29/97 2,136 CHF 1,460,736 (27,586)
---------- --------
$2,313,472 (39,834)
==========
--------
Contracts to Sell:
- ---------------
Canadian Dollar....................................... 07/02/97-08/06/97 1,109 CAD $ 803,091 (683)
French Franc.......................................... 7/29/97 330 FRF 56,260 963
German Deutsche Mark.................................. 07/16/97-10/29/97 2,216 DEM 1,273,414 16,722
Irish Punt............................................ 11/24/97-11/28/97 540 IEP 815,750 2,292
Japanese Yen.......................................... 09/11/97 31,200 JPY 275,249 5,239
New Zealand Dollar.................................... 07/15/97 660 NZD 448,011 6,098
South African Rand.................................... 07/02/97 500 ZAR 110,145 700
Swiss Franc........................................... 07/02/97-10/29/97 2,465 CHF 1,882,309 24,923
---------- --------
$5,664,229 56,254
==========
--------
Net unrealized gain................................... $ 16,420
========
Global Growth Fund:
- -------------------
Contracts to Sell:
- ---------------
French Franc.......................................... 07/31/97 57 FRF $ 9,645 $ 79
========== ========
</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 the security
or the currency rate 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.
57
<PAGE> 59
Notes to Financial Statements June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
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.
As of June 30, 1997 the Atlas Strategic Income Fund had outstanding futures
contracts to purchase and 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 may 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 recorded as a liability which is marked to the 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
whether the option is exercised or not. Additional risk exists if an illiquid
secondary market does not allow for entering into a closing transaction.
58
<PAGE> 60
- --------------------------------------------------------------------------------
Written option transactions in the Funds for the period ended June 30, 1997
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>
Strategic Income Fund:
Options outstanding at December 31, 1996.............................. 1,515,900 $14,352 224,500 $ 5,456
Options written....................................................... 481,100 6,356 91,700,000 43,523
Options closed or expired............................................. (1,997,000) (20,708) (51,890,000) (46,571)
Options exercised..................................................... 0 0 0 0
---------- -------- ----------- --------
Options outstanding at June 30, 1997.................................. 0 $ 0 40,034,500 $ 2,408
========== ======== =========== ========
Growth and Income Fund:
Options outstanding at December 31, 1996.............................. 0 $ 0 N/A N/A
Options written....................................................... 400 82,735 N/A N/A
Options closed or expired............................................. (320) (64,226) N/A N/A
Options exercised..................................................... 0 0 N/A N/A
---------- -------- ----------- --------
Options outstanding at June 30, 1997.................................. 80 $18,509 N/A N/A
========== ======== =========== ========
</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 June
30, 1997, the value of these securities amounted to $18,052,725 in the Atlas
U.S. Government and Mortgage Securities Fund and $1,022,227 in the Atlas
Strategic Income Fund. Information concerning these investments as of June 30,
1997 is as follows:
<TABLE>
<CAPTION>
Acquisition Cost Per Unit
Fund Security Date Unit Valuation
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government Repurchase Agreement with Smith Barney, Inc., 5.55% due
and Mortgage 07/14/97.................................................. 06/09/97 $100.00 $100.29
Securities Fund
Strategic Income Fund Atlas Air, Inc., 12.25% Pass-Through Certificates due
12/01/02.................................................. 05/05/97 $110.77 $113.29
CMI Industries, Inc., 9.50% Notes due 10/01/03............ 02/20/97 $100.24 $100.75
Central Termica Guemes, 12% Bonds due 11/26/01............ 11/19/96 $100.08 $104.50
Coleman Holdings, Inc., Series B, Zero Coupon Notes due
05/27/98.................................................. 12/10/96 $89.52 $92.38
Consorcio Ecuatoriano, 14% Notes due 05/01/02............. 04/29/97 $100.00 $106.75
Doane Products Co., 10.625% Notes due 03/01/06............ 01/09/97 $103.10 $105.50
Hayes Wheels International, Inc., 9.125% Notes due
07/15/07.................................................. 06/19/97 $100.00 $100.03
Icon Fitness Corp., Series B, 0%/14% Notes due 11/15/06... 06/13/97 $55.00 $54.25
Indorayon International Finance Co. BV, 10% Notes due
03/29/01.................................................. 01/06/97 $100.79 $100.81
International Wire Group, Series B, 11.75% Notes due
06/01/05.................................................. 06/11/97 $108.72 $108.75
Occidente y Caribe Celular SA, Series B, 0%/14% Notes due
03/15/04.................................................. 05/31/96 $60.75 $75.00
PTC International Finance BV, 0%/10.75% Notes due
07/01/07.................................................. 06/24/97 $59.24 $61.56
PLD Telekom, Units, due 06/01/04.......................... 05/24/96 $82.88 $84.50
Samsonite Corp., 11.125% Notes due 07/15/05............... 11/05/96 $108.78 $111.16
Shoshone Partners Trusts, 8% Notes due 05/31/02........... 06/18/97-06/25/97 $100.00 $100.11
Unifrax Investment Corp., 10.50% Notes due 11/01/03....... 10/25/96 $100.00 $103.00
Comunicacion Celular SA Warrants, Exp. 11/03.............. 12/17/96 $75.00 $74.00
</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.
59
<PAGE> 61
[ATLAS FUNDS LOGO]
794 Davis Street BULK RATE
P.O. Box 1894 U.S. POSTAGE
San Leandro, CA 94577 PAID
SAN BERNARDINO, CA
PERMIT NO. 448
AT-391
