<PAGE> 1
SEMI-ANNUAL REPORT
June 30, 1999
[ATLAS LOGO]
The investments you want from the people you trust.
NOT FDIC INSURED
<PAGE> 2
Table of Contents
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the President................................... 2
Atlas Stock and Bond Fund Total Returns..................... 7
Statements of Investments in Securities and Net Assets...... 8
Statements of Assets and Liabilities........................ 34
Statements of Operations.................................... 36
Statements of Changes in Net Assets......................... 38
Financial Highlights........................................ 42
Notes to Financial Statements............................... 52
</TABLE>
[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> 3
[Atlas Funds Logo]
FROM THE OFFICE OF MARION O. SANDLER
President and Chief Executive Officer
Dear Valued Shareholder,
The stock market continued its record climb during the
first half of 1999. At the end of the second quarter, the
Standard & Poor's 500 Index closed at an all-time high,
with a gain of 11.7% for the first six months. The Dow
Jones Industrial Average experienced even stronger gains,
rising 19.5%, but closing below its record May high.
The strength of the U.S. economy, improving financial
conditions around the world, and fears of inflation put
pressure on long-term interest rates, which rose sharply
during the first half. In line with expectations, the
Federal Reserve's Open Market Committee raised the
overnight federal funds rate by one quarter of one percent
on June 30, 1999. The increase was the first change since
the fall of 1998, when the Federal Reserve reduced rates
to ease the global currency crisis.
The Markets Year To Date
The brisk U.S. economy, low inflation, and growth in
corporate earnings drove stock prices higher during the
first half of the year. Consumer confidence was at an all
time high and translated into strong gains in spending,
particularly for housing and automobiles.
For the past several years, the stocks of large,
growth-oriented companies have experienced the greatest
gains, while most other equities lagged behind. The second
quarter saw a change in market leadership, as stocks of
small and medium-sized companies showed renewed strength.
"Value" stocks, such as chemicals and oils, that are low
priced compared to their earnings potential also
outperformed the large growth companies. Outside the U.S.,
stock markets in many emerging countries that had
experienced financial turmoil during 1998 showed
impressive gains.
Despite strong growth in the U.S. during the first
half, inflation was held in check by falling commodity
prices and gains in productivity. However, many analysts,
including those at the Federal Reserve, feared these
trends could not continue and that vigorous consumer
spending, tight labor markets, and accelerating wages
might lead to a surge in inflation.
The benchmark 30-year Treasury bond began the year at
5.10% and rose to 5.60% by the end of the first quarter.
Rates peaked at 6.16% on June 14, as markets anticipated
that the Open Market Committee of the Federal Reserve
would raise interest rates. On June 30, this group raised
rates by one quarter of one percent, while the Fed changed
its stance regarding possible future rate increases from
"probable" to "neutral." Bond prices recovered somewhat
and the rate on 30-year Treasuries closed out the quarter
at 5.96%.
The following sections provide an overview of the
Atlas Funds for the first half of 1999. Total returns
discussed below are for Class A shares (for complete
performance information, please see page 7). Of course,
past performance is no guarantee of future results, but
the funds' track records are important to consider.
Stock Funds
The Growth and Income Fund produced a first half total
return of 13.75%, significantly outdistancing the Lipper
average return for Growth and Income Funds of 10.93%.
Total return for the year ended June 30th was 23.91%
versus the Lipper average return of 14.48%. For the one
year period, the fund outperformed 767 of its 843 peers,
placing it in the top
2
<PAGE> 4
10%. On a longer term basis, the fund ranked in the top
16% of its peer group for the past five years(1). In June,
Value Line awarded the Growth and Income Fund a ranking of
"1," placing it among the top 10% of funds they
tracked(2), and it was given a prestigious 5-Star rating
by Mutual Funds magazine(3). The fund invests primarily in
stocks of large, well-known U.S. companies. During the
first half, the manager responded to changes in the
economy by increasing holdings in consumer stocks and
reducing positions in the financial sector. At the end of
the period, the portfolio was 75% invested in stock, 16%
in convertible securities and bonds, and 9% in cash.
The Global Growth Fund achieved a total return of
11.74% during the first half, outperforming the Lipper
average return for Global Funds of 10.80%. The average
annual total return since inception on 4/30/96 was 20.19%,
placing the fund in the top 14% of its peer group(4). In
June, the fund earned a coveted 5-Star rating from
Morningstar, the well-known mutual fund rating service(5).
The portfolio is invested in stocks of growth-oriented
companies throughout the world, with a substantial portion
in the U.S. and western Europe. At the end of the second
quarter, 36% of assets were in U.S. markets, 44% in
Europe, which managers believed to have an increasingly
positive outlook, and 15% in emerging markets.
Ninety-eight percent of holdings were in stocks and 2% in
cash.
The Strategic Growth Fund produced a total return of
10.23% for the first six months. The fund invests
primarily in stocks of medium to large, growth-oriented
U.S. companies that trade at reasonable prices. During
second quarter, the fund benefited from a stronger market
for medium-sized companies and value stocks, and it
produced a solid return of 11.73%. The fund's second
quarter performance beat both the 7.06% gain for the S&P
500 Index and the 7.07% average return for its peers as
tracked by Lipper. The fund's manager continues to
emphasize technology stocks, telecommunications equipment,
and consumer cyclicals, such as retailers. As of June 30,
the portfolio was 82% invested in equities and 18% in
cash.
The Balanced Fund gained 3.29% for the first half. In
February in its annual Mutual Fund Scoreboard issue,
Business Week magazine put the Balanced Fund on its A-List
for superior risk-adjusted returns. In order to receive an
"A," the fund placed in the top 7.5% of approximately
1,400 equity funds with five years or more of performance
history(6). The
(1) Lipper Analytical Services, Inc. ranked the fund 76
out of 843 for total return for one year and 50 out of
323 for five years ended 6/30/99 for the Growth and
Income Fund category.
(2) Value Line rankings are as of 6/30/99 and are based on
one- and five-year Growth Persistence, as well as
three-year risk-adjusted performance. Growth
Persistence is a proprietary measure of the
consistency of positive monthly returns, and
risk-adjusted performance is three-year total return
divided by three-year monthly standard deviation. The
Growth and Income Fund was ranked against 3,548 Equity
and Partial Equity Funds. The top 10% of funds in each
category receive an Overall Ranking of 1 (Highest).
(3) Mutual Fund magazine's overall rating among 2,396
equity funds is as of 6/25/99. Ratings reflect
historical risk-adjusted performance and are subject
to change. Ratings are based on total return, relative
to price fluctuations, over two to ten years. The fund
was also given Five Stars for one and five years,
among 2,851 and 1,257 funds. The top 20% of funds
receive Five Stars.
(4) Lipper Analytical Services, Inc. ranked the fund 63
out of 239 for total return for one year ended 6/30/99
for the Global Fund category, and 21 out of 151 since
inception on 4/30/96.
(5) Morningstar proprietary rating reflects historical
risk-adjusted performance as of 6/30/99 and is subject
to change. The rating is based on the three-year
average annual return in excess of 90-day Treasury
bill returns with appropriate fee adjustments, and a
risk factor that reflects performance below 90-day
T-Bill returns. The fund received Five Stars among 987
International Equity Funds rated for the three year
period. The top 10% of funds in each category receive
Five Stars.
(6) Business Week ratings are based on five-year total
returns, adjusted for downside volatility. This year,
104 funds earned A's out of nearly 1,400 equity funds
with the minimum five-year track record.
3
<PAGE> 5
manager invests in a diversified portfolio and adjusts the
mixture of stocks, bonds and convertible securities to
take advantage of "up markets" and conserve capital in
"down markets." During the first half, holdings in
electric utilities experienced strong gains, while oil and
bank stocks were weaker performers. At the end of the
period, 49% of the portfolio was in stocks, 32% in bonds,
10% in convertible securities, and 9% in cash.
The Emerging Growth Fund returned -8.15% during the
first two quarters. The fund invests primarily in stocks
of small, growth-oriented U.S. companies that are beyond
the start-up phase, but are not yet established or mature.
The fund manager looks for companies that have leadership
potential in their market sectors and are likely to
experience a growing demand for their products. The fund's
first half performance was hurt by price declines in its
health care and educational holdings and its
underweighting of Internet stocks compared to its peers.
The fund continues to focus on technology and consumer
stocks. On June 30 the Emerging Growth Fund was 90%
invested in stocks and 10% in cash.
Bond Funds
The U.S. Government and Mortgage Securities Fund has
continued to produce outstanding yields, beating at least
85% of its peers for yield in every single month for the
past five years.(7) The 30-day yield on June 30 was an
attractive 6.00%. For the first six months, the fund
produced a total return of -0.13% versus an average loss
of -2.67% for its peer group. In June the U.S. Government
and Mortgage Securities Fund was awarded a ranking of "1"
by Value Line, placing it in the top 10% of 1,390 taxable
fixed income funds(8). The portfolio remained invested
exclusively in mortgage-backed securities rated AAA or the
equivalent.
Based on an average annual total return of 7.50% since
inception of Lipper performance tracking on 5/31/96, the
Strategic Income Fund ranked in the top 23% of its
peers(9). The fund, impacted by falling bond prices,
returned -0.10% for the first half. In its search for high
yields, 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. As of June 30, the 30-day yield was 8.1%,
and the portfolio was 39% invested in U.S. Government
securities, 31% in high yield debt, 23% in foreign bonds,
and 7% in cash.
The California Municipal Bond Fund had a total return
of -1.46% for the first six months, outperforming the
Lipper average return for California Municipal Debt Funds
of -1.74%. Total return for the year ended June 30 was
1.89%, exceeding the peer group average return of 1.60%.
On June 30, the fund's double tax-free 30-day yield was
3.99%, for a taxable equivalent yield of 7.28%. The fund's
manager has been placing greater emphasis on securities
that offer higher yields, while maintaining investment
grade quality. In fact, the
(7) Lipper Analytical Services, Inc. ranked the fund 22
out of 184 for total return for one year and 36 out of
107 for five years ended 6/30/99 for the General U.S.
Government Fund category. The source for yield
rankings is the Lipper Mutual Fund Yield Survey, June
30, 1999.
(8) Value Line rankings are as of 6/30/99 and are based on
one- and five-year Growth Persistence, as well as
three-year risk-adjusted performance. Growth
Persistence is a proprietary measure of the
consistency of positive monthly returns, and
risk-adjusted performance is three-year total return
divided by three-year monthly standard deviation.
(9) Lipper Analytical Services, Inc. ranked the fund 36
out of 96 for total return for one year ended 6/30/99
and 14 out of 63 since inception on 5/31/96.
4
<PAGE> 6
portfolio ranks in the top 4% of its peers for credit
quality, with 86% of the portfolio in bonds rated AAA and
AA(10).
The National Municipal Bond Fund experienced a total
return of -1.99% for the first half and 1.12% for the year
ended June 30. At the end of the second quarter, the
fund's tax-free 30-day yield was 4.23% for a taxable
equivalent yield of 7.00%. The fund, like the California
Municipal Bond Fund, has been focusing on investment grade
securities offering higher yields. The portfolio continues
to rank among the top third of its peer group for credit
quality, with 56% of assets in AAA rated securities(10).
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. Unlike many of their peers, our money
funds hold only top quality securities. They have
continued to avoid issues that are backed by Japanese
letters of credit, since these securities do not meet the
stringent quality standards that we have imposed on our
money market portfolios.
An Exciting New Atlas Tax-Deferred Annuity
At the end of the second quarter, Atlas introduced a
new tax-deferred annuity with a highly attractive 8% first
year interest rate, which included a 3% first year bonus
rate. Atlas Tax-Deferred Annuities are available with no
initial sales charge and come with an insurance company
money back guarantee. If your investment objectives
include stability of principal and reducing current income
taxes, I encourage you to find out more about Atlas Tax-
Deferred Annuities. If you're looking for tax-deferred
growth, our variable annuity, Atlas Portfolio Builder may
be right for you. For more information on the benefits of
tax deferral and how it can work for you, call Atlas today
at 1-800-933-ATLAS, or visit your Atlas Representative at
a nearby World branch.
The Atlas Advantage: No Load Mutual Funds
With Person-To-Person Advice
When you invest in any Atlas Fund, you don't pay one
cent in sales charges. And as an added benefit, your Atlas
no load mutual funds come with the knowledge and expertise
of a friendly Atlas Representative. Instead of doing
business with some cold, impersonal voice over the phone,
you'll meet with your Atlas Representative,
person-to-person, in the comfort of a nearby branch of our
sister company -- World Savings. Atlas offers you the kind
of personal attention and professional advice that most no
load funds simply do not provide.
The Investments You Want From the People You Trust
As a sister company of World Savings and a member of
the $40 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. Your Atlas Representative will
be happy to answer any questions you have about your funds
and annuities, or prepare a complimentary review of your
investment portfolio. For an appointment, just call
1-800-933-ATLAS.
(10) Lipper Portfolio Analysis Report on Fixed Income
Funds (Tax-Exempt), March 31, 1999.
5
<PAGE> 7
We appreciate the trust you've placed in Atlas, and we
look forward to serving you for many years to come.
Sincerely,
/s/ Marion O. Sandler
Marion O. Sandler
President and Chief Executive Officer
6
<PAGE> 8
Atlas Stock and Bond Fund Total Returns for periods ended June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Shares Class B Shares
------------------------------------------- -------------------------------------
1 Year 5 Years Since Inception 1 Year 5 Years
------ ------- ------------------ ------------------------- --------
at at at inception without with without
net net net date deferred deferred deferred
asset asset asset sales sales sales
value value value charge charge(1) charge
% % % % % %
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Stock Funds:
Balanced ----------------------- 4.09 15.23 12.53 9/93 3.58 0.64 14.59
Emerging Growth ---------------- -10.49 N.A. 11.38 4/97 -11.01 -13.68 N.A.
Global Growth ------------------ 13.16 N.A. 20.19 4/96 12.58 9.58 N.A.
Growth and Income -------------- 23.91 24.98 19.01 12/90 23.23 20.23 24.35
Strategic Growth --------------- 7.66 20.42 17.49 9/93 7.09 4.09 19.67
Bond Funds:
California Municipal Bond ------ 1.89 5.80 7.08 1/90 1.34 -1.55 5.24
National Municipal Bond -------- 1.12 5.84 7.16 1/90 0.70 -2.18 5.33
Strategic Income --------------- 0.56 N.A. 7.15 5/96 -0.19 -2.98 N.A.
U.S. Government and
Mortgage Securities ------------ 2.84 6.94 7.49 1/90 2.34 -0.56 6.45
<CAPTION>
Class B Shares
----------------------------------
Since Inception
----------------------------------
without with inception
deferred deferred date
sales sales
charge charge(1)
% %
- -------------------------------- ----------------------------------
<S> <C> <C> <C>
Stock Funds:
Balanced ----------------------- 14.59 14.59 7/94
Emerging Growth ---------------- 10.64 9.82 4/97
Global Growth ------------------ 19.48 19.05 4/96
Growth and Income -------------- 24.35 24.35 7/94
Strategic Growth --------------- 19.67 19.67 7/94
Bond Funds:
California Municipal Bond ------ 5.24 5.24 7/94
National Municipal Bond -------- 5.33 5.33 7/94
Strategic Income --------------- 6.31 5.77 5/96
U.S. Government and
Mortgage Securities ------------ 6.45 6.45 7/94
</TABLE>
(1) Assumes complete redemption at the end of the given period and imposition of
the maximum Contingent Deferred Sales Charge.
There is no deferred sales charge after five years.
7
<PAGE> 9
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------------- ------------
<S> <C> <C>
COMMON STOCKS - 48.44%
Aerospace/Defense - .77%
AlliedSignal, Inc. ............. 12,000 $ 756,000
Raytheon Co., Cl. A............. 191 13,155
Automotive - .38%
Delphi Automotive Systems
Corp. .......................... 20,200 374,963
Banks - 14.26%
Banc One Corp. ................. 31,000 1,846,438
BankAmerica Corp. .............. 25,000 1,832,813
Bank of Boston Corp. ........... 20,000 1,022,500
Capital One Financial Corp. .... 18,000 1,002,375
Charter One Financial, Inc. .... 15,000 417,188
Chase Manhattan Corp. .......... 13,000 1,126,125
CitiGroup....................... 21,000 997,500
First Union Corp. .............. 25,000 1,175,000
Fleet Financial Group, Inc. .... 20,000 887,500
Keycorp......................... 20,000 642,500
Mellon Bank Corp. .............. 26,000 945,750
National City Corp. ............ 8,000 524,000
PNC Bank Corp. ................. 8,000 461,000
SunTrust Banks, Inc. ........... 8,000 555,500
Summit Bancorp.................. 13,000 385,313
Union Planters Corp. ........... 10,000 446,874
Chemicals & Allied
Products - .83%
Dexter Corp. ................... 12,000 489,750
Engelhard Corp. ................ 15,000 339,375
Consumer Goods & Services - .51%
Newell Rubbermaid, Inc. ........ 10,900 506,850
Drugs and Health Care - 2.02%
American Home Products Corp. ... 7,000 402,500
Bristol-Myers Squibb Co. ....... 14,000 986,125
Crescendo Pharmaceuticals Corp.
(b)............................. 145 2,501
Hillenbrand Industries, Inc. ... 8,000 346,000
Pharmacia & Upjohn, Inc. ....... 5,000 284,063
Electrical Utilities - 3.79%
Allegheny Energy, Inc. ......... 7,000 224,438
American Electric Power Co. .... 2,500 93,906
Central & South West Corp. ..... 14,000 327,250
DQE, Inc. ...................... 10,000 401,250
Florida Progress Corp. ......... 13,000 537,063
Illinova Corp. ................. 19,000 517,750
New Century Energies, Inc. ..... 7,500 291,094
Potomac Electric Power Co. ..... 8,000 235,500
SCANA Corp. .................... 7,000 163,625
Texas Utilities Co. ............ 12,000 495,000
Unicom Corp. ................... 13,000 501,313
Environmental Management - .30%
Browning-Ferris Industries,
Inc. ........................... 7,000 301,000
Financial Services - 2.84%
Associates First Capital
Corp. .......................... 4,000 177,250
Deluxe Corp. ................... 13,900 541,231
FBR Asset Investment Corp.
(a)(f).......................... 50,000 675,000
H & R Block, Inc. .............. 5,000 250,000
Household International,
Inc. ........................... 18,399 871,653
Imperial Credit Commercial
Mortgage Investment Corp. ...... 30,000 324,375
Food & Beverages - .40%
General Mills, Inc. ............ 5,000 401,875
Food Wholesalers - .54%
SuperValue, Inc. ............... 15,000 543,561
</TABLE>
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------------- ------------
<S> <C> <C>
Gas Utilities - 1.10%
Enron Corp. .................... 11,000 $ 899,250
Enron Oil & Gas Co. ............ 10,000 202,500
Home Builders/Real Estate - 3.38%
Anthracite Mortgage Capital,
Inc. ........................... 25,000 164,063
Archstone Communities Trust..... 20,000 438,750
Avalonbay Communities, Inc. .... 15,000 555,000
Cornerstone Properties, Inc. ... 18,000 285,750
Equity Office Properties
Trust........................... 20,000 512,500
Equity Residential Properties
Trust........................... 14,000 630,875
Horizon Group Properties, Inc.
(b)............................. 1,000 3,250
Prime Retail, Inc. ............. 20,000 173,750
Reckson Associates Realty
Corp. .......................... 23,000 540,500
Wilshire Real Estate Investment
Trust........................... 20,000 77,500
Industrial Manufacturing - .91%
Sonoco Products Co. ............ 16,000 479,000
Tyco International, Ltd. ....... 4,583 434,237
Insurance - 4.00%
Aetna, Inc. .................... 10,000 894,375
Allstate Corp. ................. 7,000 251,125
American General Corp. ......... 12,000 904,500
Enhance Financial Services
Group, Inc. .................... 18,000 355,500
Hartford Financial Services
Group, Inc. .................... 7,000 408,188
IPC Holdings, Ltd. ............. 5,000 100,000
Reliance Group Holdings,
Inc. ........................... 40,000 297,500
St. Paul Companies, Inc. ....... 25,000 795,313
Machine Tools & Equipment - .70%
Cooper Industries, Inc. ........ 6,000 312,000
Snap-On, Inc. .................. 11,000 398,063
Manufacturing - .44%
Pall Corp. ..................... 20,000 443,750
Oil & Gas - 3.89%
Atlantic Richfield Co. ......... 5,000 417,813
Conoco, Inc. ................... 25,000 696,875
MCN Energy Group, Inc. ......... 8,000 166,000
Phillips Petroleum Co. ......... 10,000 503,125
Royal Dutch Petroleum Co.,
ADR............................. 8,000 482,000
Tenneco, Inc. .................. 12,000 286,500
Ultramar Diamond Shamrock
Corp. .......................... 10,000 218,123
Unocal Corp. ................... 12,000 475,500
USX-Marathon Group.............. 20,000 651,250
Paper & Forest Products - 2.08%
Fort James Corp. ............... 14,067 532,788
International Paper Co. ........ 10,000 505,000
Smurfit-Stone Container Corp.
(b)............................. 10,000 205,625
Westvaco Corp. ................. 10,000 290,000
Weyerhauser Co. ................ 8,000 550,000
Printing, Publishing & Allied
Products - 1.19%
Dun & Bradstreet Corp. ......... 25,000 885,938
Hollinger International,
Inc. ........................... 20,000 237,500
R. H. Donnelley Corp. .......... 3,200 62,600
Retail Trade - .74%
Family Dollar Stores, Inc. ..... 16,000 384,000
Sears Roebuck & Co. ............ 8,000 356,500
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE> 10
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------------- ------------
<S> <C> <C>
Telecommunications - 3.37%
GTE Corp. ...................... 14,000 $ 1,060,500
Motorola, Inc. ................. 14,000 1,326,500
SBC Communications, Inc. ....... 17,000 986,000
----------
Total Common Stocks (cost: $38,282,199) 48,481,168
----------
CONVERTIBLE PREFERRED
STOCKS - 9.40%
Banks - 1.93%
Bank of Portugal................ 600 58,800
National Australia Bank,
Ltd. .......................... 30,000 911,250
St. George Bank (a)............. 8,000 402,000
Westpac Banking Corp. STRYPES... 17,400 563,325
Consumer Goods & Services - 1.39%
Newell Financial Trust 1 (a).... 25,000 1,393,750
Electrical Utilities - 1.09%
Houston Industries, Inc. ACES... 3,500 417,375
NiSource, Inc. ................. 7,000 345,625
Texas Utilities Co. ............ 5,900 324,500
Financial Services - .39%
MCN Energy Group, Inc. ......... 10,000 391,250
Food & Related - .21%
Chiquita Brands International,
Inc. .......................... 5,000 210,000
Homebuilders/Real Estate - .41%
Kaufman & Broad Home Corp. ..... 50,000 406,250
Industrials - .14%
Owens Corning Capital LLC MIPS
(a)............................. 3,000 142,125
Insurance - 1.00%
American Heritage Life
Investment Corp. ............... 5,000 330,625
PLC CAP Trust II................ 11,500 667,000
Leisure & Entertainment - .61%
Premier Parks, Inc. PIES........ 9,000 612,000
Specialty Retailing - 1.16%
Merrill Lynch-Dollar General
Corp. STRYPES (b)............... 27,100 1,161,912
Telecommunications - .60%
Comcast Corp. .................. 7,000 603,750
Transportation - .47%
Union Pacific Corp. (a)......... 8,800 465,300
----------
Total Convertible Preferred Stocks (cost:
$8,567,140) 9,406,837
----------
CONVERTIBLE BONDS - .63%
Insurance - .36%
Mutual Risk Management, 0% due
10/30/15 (a).................... $ 500,000 356,250
Metals Mining - .27%
Inco, Ltd., 5.75% due
07/01/04....................... $ 300,000 274,125
----------
Total Convertible Bonds (cost: $514,531) 630,375
----------
CORPORATE BONDS - 5.11%
Automotive - .10%
General Motors Acceptance Corp.,
5.50% due 12/15/01.............. $ 100,000 97,518
</TABLE>
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------------- ------------
<S> <C> <C>
Banks - .60%
Bank One Corp., 7.25% due
08/15/04........................ $ 590,000 $ 603,349
Broadcast, Radio & TV - .76%
TCI Communications, Inc., 6.875%
due 02/15/06.................... $ 600,000 595,007
Tele-Communications, Inc., 7.25%
due 08/01/05.................... $ 160,000 164,092
Diversified Media - .08%
Time Warner, Inc., 7.95% due
02/01/00........................ $ 80,000 80,800
Drugs and Health Care - .25%
R.P. Scherer Corp., 6.75% due
02/01/04........................ $ 250,000 248,010
Financial Services - .25%
PaineWebber Group, Inc., 7% due
03/01/00........................ $ 250,000 251,106
Food & Beverages - .55%
Coca-Cola Enterprises, 5.75% due
11/01/08........................ $ 600,000 553,180
Food Processing - .26%
ConAgra, Inc., 7.40% due
09/15/04........................ $ 250,000 256,511
Foreign Government - .16%
Treasury Corp. of Victoria, 9%
due 09/04/02.................... $ 228,000 163,602
Gas Utilities - .32%
Enron Corp., 7.625% due
09/10/04........................ $ 175,000 180,966
Enron Corp., 9.875% due
06/15/03........................ $ 125,000 138,023
Hotel/Gaming - .12%
Circus Circus Enterprises, Inc.,
6.75% due 07/15/03.............. $ 125,000 119,227
Oil and Gas - .33%
Coastal Corp., 9.75% due
08/01/03........................ $ 300,000 330,861
Paper & Forest Products - .20%
Fletcher Challenge Canada, Ltd.,
7.75% due 06/20/06.............. $ 200,000 199,703
Telephone Utilities - .55%
Sprint Capital Corp., 6.875% due
11/15/28........................ $ 600,000 546,319
Transportation - .58%
Union Pacific Corp., 6.39% due
11/01/04........................ $ 600,000 581,430
----------
Total Corporate Bonds (cost: $5,258,175) 5,109,704
----------
UNITED STATES TREASURY
NOTES - 27.24%
6.625% due 03/31/02.............. $ 6,000,000 6,150,000
5.50% due 02/28/03............... $ 10,000,000 9,928,130
6.80% due 11/15/04............... $ 525,000 573,233
Strip, 0% due 08/15/20........... $ 40,000,000 10,614,360
----------
Total U.S. Treasury Notes (cost: $26,940,902) 27,265,723
----------
</TABLE>
9
<PAGE> 11
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------------- ------------
<S> <C> <C>
SHORT-TERM SECURITIES - 8.70%
Triparty Repurchase Agreement
dated June 30, 1999 with
Prudential Securities, Inc.,
effective yield of 4.10%, due
July 1, 1999, collateralized by
FNMAs, 5.81%, April 19, 2004
with a value of $8,883,877...... $ 8,703,009 $ 8,703,009
----------
Total Short-Term Securities (cost: $8,703,009) 8,703,009
----------
TOTAL SECURITIES (COST: $88,265,956) - 99.52% 99,596,816
OTHER ASSETS AND LIABILITIES, NET - .48% 483,924
----------
NET ASSETS - 100.00% $100,080,740
----------
----------
Atlas Emerging Growth Fund
- -----------------------------------------------------------------------
shares or value
face amount (i) (note 1)
------------- ----------
COMMON STOCKS - 90.48%
Apparel & Textiles - 1.29%
Chico's Fas, Inc. (b)........... 2,600 $ 61,100
Cutter & Buck, Inc. (b)......... 7,000 118,125
Computer Hardware - 2.01%
Network Appliance, Inc. (b)..... 5,000 279,375
Computer Software - 14.69%
Advent Software, Inc. (b)....... 3,100 207,506
Concord Communications, Inc.
(b)............................. 4,000 180,000
New Era of Networks, Inc. (b)... 5,000 219,374
Redback Networks, Inc. (b)...... 200 25,113
SAGA Systems, Inc. (b).......... 16,000 204,000
Software.com, Inc. (b).......... 1,400 32,463
TenFold Corp. (b)............... 5,000 156,250
Veritas Software Corp. (b)...... 5,000 474,688
Visio Corp. (b)................. 10,000 380,625
WebTrends Corp. (b)............. 3,500 161,219
Consumer Goods &
Services - 15.31%
Action Performance Co., Inc.
(b)............................. 5,000 164,688
Advance Paradigm, Inc. (b)...... 6,000 366,000
Cornell Corrections, Inc. (b)... 14,000 230,125
Getty Images, Inc. (b).......... 15,000 283,125
Group Maintenance America Corp.
(b)............................. 10,000 129,375
Maximus, Inc. (b)............... 6,000 172,500
Rent-A-Center, Inc. (b)......... 7,000 168,000
Rent-Way, Inc. (b).............. 8,000 197,000
SLI, Inc. (b)................... 6,300 170,100
Student Advantage, Inc. (b)..... 6,600 61,050
Tetra Tech, Inc. (b)............ 11,250 185,625
Diversified Media - 1.40%
Penton Media, Inc............... 8,000 194,000
Drugs & Health Care - 3.28%
Kendle International, Inc.
(b)............................. 7,000 112,000
Pharmaceutical Product
Development, Inc. (b)........... 5,000 136,875
Renal Care Group, Inc. (b)...... 8,000 207,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund (continued)
- -----------------------------------------------------------------------
shares or value
face amount (i) (note 1)
---------------- ------------
<S> <C> <C>
Education - 6.82%
Career Education Corp. (b)...... 8,000 $ 270,500
Education Management Corp.
(b)............................. 15,000 311,250
ITT Educational Services, Inc.
(b)............................. 7,000 182,436
Strayer Education, Inc. ........ 6,000 184,125
Electronics - 2.35%
Maker Communications, Inc.
(b)............................. 600 18,450
Pittway Corp., Cl. A............ 9,000 307,688
Energy Services &
Producers - .90%
Core Laboratories NV (b)........ 9,000 125,438
Environmental Management - 1.03%
Casella Waste Systems, Inc., Cl.
A (b)........................... 5,500 143,000
Financial Services - 6.74%
E-LOAN, Inc. (b)................ 2,100 80,850
First Sierra Financial, Inc.
(b)............................. 5,300 131,838
Investors Financial Services
Corp............................ 16,000 640,000
Resource America, Inc., Cl. A... 5,800 83,738
Health Care/Supplies & Services - 5.55%
Hanger Orthopedic Group, Inc.
(b)............................. 12,000 170,250
Sabratek Corp. (b).............. 15,000 328,125
Serologicals Corp. (b).......... 19,500 158,438
Ventana Medical Systems, Inc.
(b)............................. 6,000 114,750
Home Builders/Real Estate - 3.48%
Fairfield Communities, Inc.
(b)............................. 30,000 483,750
Industrial Services - .99%
Metzler Group, Inc. (b)......... 5,000 138,124
Information Technology - 2.24%
@plan, Inc. (b)................. 4,000 59,000
GoTo.com, Inc. (b).............. 1,300 36,156
Juniper Networks, Inc. (b)...... 300 44,680
Mail.com, Inc. (b).............. 4,000 75,000
OneSource Information Services,
Inc. (b)........................ 5,000 42,187
Showcase Corp. (b).............. 6,300 54,338
Insurance - 4.48%
Annuity and Life Re (Holdings),
Ltd............................. 15,000 336,563
Medical Assurance, Inc. (b)..... 10,000 285,625
Internet Technology - 5.97%
Ariba, Inc. (b)................. 600 58,425
Ask Jeeves, Inc. (b)............ 200 2,800
BackWeb Technologies, Ltd.
(b)............................. 3,000 81,375
CAIS Internet, Inc. (b)......... 4,500 82,688
Clarent Corp. (b)............... 1,800 27,000
CyberSource Corp. (b)........... 4,900 71,663
Internet.com Corp. (b).......... 600 7,500
Mpath Interactive, Inc. (b)..... 6,000 132,000
Online Resources &
Communications Corp. (b)........ 4,500 61,031
Phone.com, Inc. (b)............. 1,200 67,200
Ramp Networks, Inc. (b)......... 2,700 38,644
Stamps.com, Inc. (b)............ 3,600 63,000
StarMedia Network, Inc. (b)..... 500 32,063
Viant Corp...................... 3,000 103,875
Leisure & Entertainment - 2.64%
Cinar Films, Inc., Cl. B (b).... 15,000 367,500
Restaurants - .22%
Rubio's Restaurants, Inc. (b)... 2,000 30,625
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE> 12
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund (continued)
- -----------------------------------------------------------------------
shares or value
face amount (i) (note 1)
---------------- ------------
<S> <C> <C>
Retail Trade - 7.48%
David's Bridal, Inc. (b)........ 14,400 $ 224,100
Handleman Co. .................. 24,000 283,500
O'Reilly Automotive, Inc. (b)... 4,000 201,500
The Pantry, Inc. (b)............ 8,700 138,112
School Specialty, Inc. (b)...... 12,000 192,750
Telecommunications - 1.61%
Aware, Inc. (b)................. 2,000 91,750
Inet Technologies, Inc. (b)..... 3,200 76,600
Latitude Communications, Inc.
(b)............................ 4,300 55,900
----------
Total Common Stocks (cost: $10,850,312) 12,575,201
----------
SHORT-TERM SECURITIES - 8.09%
Triparty Repurchase Agreement
dated June 30, 1999 with
Prudential Securities, Inc.,
effective yield of 4.10%, due
July 1, 1999, collateralized by
FNMAs, 6.50%, July 1, 2029 with
a value of $1,146,951........... $ 1,124,462 1,124,462
----------
Total Short-Term Securities (cost: $1,124,462) 1,124,462
----------
TOTAL SECURITIES (COST: $11,974,774) - 98.57% 13,699,663
OTHER ASSETS AND LIABILITIES, NET - 1.43% 198,348
----------
NET ASSETS - 100.00% $ 13,898,011
----------
----------
Atlas Global Growth Fund
- -----------------------------------------------------------------------
shares, units or value
face amount (i) (note 1)
------------- ----------
COMMON STOCKS - 97.78%
Aerospace/Defense - .64%
Rolls-Royce PLC................. 72,200 $ 306,421
Automotive - 6.48%
Autoliv, Inc.................... 11,100 338,712
Porsche AG, Preference.......... 620 1,457,068
Volkswagen AG................... 20,200 1,295,076
Banks - 3.93%
Banco Bradesco SA, Preference... 38,807,357 194,037
Banco Frances del Rio de la
Plata SA, Sponsored ADR......... 10,000 190,000
Industrial Credit & Investment
Corp. of India, Ltd. GDR (a).... 29,400 249,183
Royal Bank of Scotland Group
PLC............................ 12,000 243,625
Societe Generale de Paris....... 2,200 387,541
UBS AG.......................... 1,300 387,972
Unicredito Italiano SPA......... 50,900 223,764
Broadcast, Radio & TV - 9.03%
Agora SA GDR (b)................ 38,000 442,700
Canal Plus...................... 5,200 1,458,429
Grupo Televisa SA, Sponsored GDR
(a)(b).......................... 15,400 690,113
ProSieben Media AG.............. 9,685 439,244
Television Broadcast, Ltd.
(b)............................ 120,000 562,981
</TABLE>
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- -----------------------------------------------------------------------
shares, units or value
face amount (i) (note 1)
---------------- ------------
<S> <C> <C>
Television Francaise............ 2,000 $ 465,899
TeleWest Communications PLC
(b)............................ 55,274 248,308
Computer Hardware - 3.09%
Cisco Systems, Inc. (b)......... 6,750 435,375
Sun Microsystems, Inc. (b)...... 15,100 1,040,013
Computer Services - 1.06%
Getronics NV.................... 13,200 507,758
Computer Software - 2.09%
Cadence Design Systems, Inc.
(b)............................ 23,900 304,725
Cap Gemini Sogeti SA............ 4,400 691,180
Conglomerate - 2.06%
Bombadier, Inc., Cl. B.......... 29,800 453,026
Vivendi......................... 6,545 529,919
Diversified Financial - 2.83%
Allied Zurich PLC (b)........... 35,800 450,027
American Express Co. ........... 2,000 260,250
Associates First Capital
Corp. ......................... 5,100 225,994
AXA China Region, Ltd. ......... 3,400 414,588
Drugs & Health Care - 12.69%
Amgen, Inc. (b)................. 5,500 334,813
C. R. Bard, Inc. ............... 3,300 157,781
Cardinal Health, Inc. .......... 3,500 224,438
Eisai Co., Ltd. ................ 18,000 354,720
Elan Corp. PLC Sponsored ADR
(b)............................. 17,500 485,625
Fresenius AG, Preference........ 5,100 901,545
Genset, Sponsored ADR (b)....... 25,000 390,625
Genzyme Corp. - General Division
(b)............................. 5,000 242,500
Genzyme Surgical Products (b)... 895 3,944
Gilead Sciences, Inc. (b)....... 8,100 423,225
Glaxo Wellcome PLC, Sponsored
ADR............................. 5,000 283,125
Hoya Corp....................... 3,000 169,304
Millenium Pharmaceuticals, Inc.
(b)............................ 7,600 273,600
Pliva D. D. GDR (a)(b).......... 30,450 458,273
Quintiles Transnational Corp.
(b)............................ 11,900 499,800
Rhoen-Klinikum AG............... 6,000 587,528
Taisho Pharmaceutical Co.,
Ltd. .......................... 8,000 264,408
Electronics - 7.54%
Advanced Micro Devices, Inc.
(b)............................ 12,500 225,781
Affymetrix, Inc. (b)............ 7,100 350,563
Koninklijke Philips Electronics
NV ............................ 9,200 907,039
Lernout & Hauspie Speech
Products NV (b)................. 11,800 418,163
National Semiconductor Corp.
(b)............................ 44,400 1,123,875
SGS-Thomson Microelectronics NV
(b)............................. 8,200 568,875
Environmental Management - 3.32%
Allied Waste Industries, Inc.
(b)............................ 25,300 499,675
Rentokil Initial PLC............ 110,600 431,475
Societe Industrielle de
Transports Automobiles SA....... 1,000 226,147
Waste Management, Inc........... 7,900 424,625
Financial Services - 2.00%
Federal National Mortgage
Association..................... 7,100 485,463
Goldman Sachs Group, Inc. (b)... 600 43,350
Morgan Stanley Dean Witter &
Co. ........................... 700 71,750
Nichiei Co., Ltd................ 4,000 353,646
Food & Beverages - 2.38%
Cadbury Schweppes PLC........... 77,000 490,340
</TABLE>
11
<PAGE> 13
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- -----------------------------------------------------------------------
shares, units or value
face amount (i) (note 1)
---------------- ------------
<S> <C> <C>
Companhia Cervejaria Brahma,
Preference...................... 272,000 $ 149,736
Cresud SA, Sponsored ADR........ 5,338 58,718
Dairy Farm International
Holdings, Ltd. ................. 364,458 437,350
Homebuilders/Real Estate - 1.26%
Brazil Realty SA GDR (a)(f)..... 25,000 311,628
IRSA Inversiones y
Representaciones SA............. 50,890 156,762
Solidere GDR (a)................ 15,000 134,625
Hotel/Gaming - .72%
International Game Technology... 18,500 342,250
Industrial Manufacturing - 1.41%
International Flavors &
Fragrances, Inc................. 15,200 674,500
Industrial Materials - 1.22%
Hanson Trust PLC................ 65,200 581,173
Industrial Services - 2.05%
Adecco SA....................... 612 327,896
WPP Group PLC................... 77,100 650,171
Insurance - 1.13%
American International Group,
Inc. .......................... 1,650 193,153
Chubb Corp...................... 5,000 347,500
Leisure & Entertainment - .52%
Corporacion Interamericana de
Entretenimiento SA, Cl. B (b)... 62,436 197,952
Resorts World Berhad (f)........ 21,000 49,461
Manufacturing - 3.87%
Bulgari SPA..................... 74,500 499,755
Olivetti SPA.................... 97,100 233,500
Pirelli SPA..................... 114,800 312,391
Sidel SA........................ 1,800 218,746
Societe BIC SA.................. 11,000 579,951
Metals Mining - .07%
Minerals Technologies, Inc...... 600 33,488
Oil & Gas - .16%
BP Amoco PLC ADR................ 4,242 76,025
Printing, Publishing & Allied
Products - 1.14%
Reed International PLC.......... 17,600 118,630
Singapore Press Holdings,
Ltd............................ 25,000 425,794
Retail trade - 1.80%
Credit Saison Co., Ltd. ........ 15,000 313,572
Dixons Group PLC................ 19,500 366,116
Sonae Investimentos - SGPS SA... 5,300 180,169
Specialty Retailing - 2.29%
Circuit City Stores............. 5,200 483,600
Dickson Concepts International,
Ltd. .......................... 190,000 134,688
Wella AG, Preference............ 650 472,341
Supermarkets - .74%
Carrefour Supermarche SA........ 2,400 352,517
Telecommunications - 18.11%
Alcatel Alsthom................. 1,800 253,255
AT&T Corp....................... 7,900 440,919
Hellenic Telecommunication
Organization SA................. 16,666 356,947
MCI Worldcom, Inc. (b).......... 5,100 439,875
Nippon Telegraph and Telephone
Corp. .......................... 50 582,524
Nokia Corp., Sponsored ADR Cl.
A.............................. 4,800 439,500
QUALCOMM, Inc. (b).............. 26,000 3,731,000
Scientific-Atlanta, Inc. ....... 15,600 561,600
</TABLE>
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- -----------------------------------------------------------------------
shares, units or value
face amount (i) (note 1)
---------------- ------------
SK Telecom Co., Ltd............. 90 $ 120,518
SK Telecom Co., Ltd. ADR........ 13,905 236,385
Tele Norte Leste Participacoes
SA............................. 15,570,000 284,931
Telecomunicacoes de Sao Paulo
SA............................. 3,478,758 412,929
Telstra Corp., Ltd. ............ 89,500 512,299
Videsh Sanchar Nigam, Ltd.,
Sponsored GDR (a)............... 25,000 263,493
Telephone Utilities - .62%
Telecom Italia SPA.............. 49,100 293,233
Toys - 1.53%
Hasbro, Inc..................... 16,100 449,794
Nintendo Co., Ltd............... 2,000 278,455
----------
Total Common Stocks (cost: $36,877,146) 46,641,764
----------
RIGHTS, WARRANTS AND
CERTIFICATES - .03%
Olivetti Spa Warrants, Exp.
07/99............................ 97,100 13,321
SK Telecom Co., Ltd. Rights, Exp.
07/99............................ 20 0
----------
Total Rights, Warrants and Certificates (Cost: $0) 13,321
----------
SHORT-TERM SECURITIES - 3.38%
Triparty Repurchase Agreement
dated June 30, 1999 with
Prudential Securities, Inc.,
effective yield of 4.10%, due
July 1, 1999, collateralized by
U.S. Treasury Bonds, 8.75%,
August 15, 2020 with a value of
$1,645,557...................... $ 1,611,962 1,611,962
----------
Total Short-Term Securities (cost: $1,611,962) 1,611,962
----------
TOTAL SECURITIES (COST: $38,489,108) - 101.19% 48,267,047
OTHER ASSETS AND LIABILITIES, NET - (1.19)% (565,397)
----------
NET ASSETS - 100.00% $47,701,650
----------
----------
Atlas Growth and Income Fund
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------- ----------
<S> <C> <C>
COMMON STOCKS - 74.78%
Banks - 10.58%
Bank of America Corp. .......... 70,000 $ 5,131,875
Fifth Third Bancorp............. 130,000 8,653,125
First Tennessee National
Corp. ......................... 275,000 10,535,938
Providian Financial Corp. ...... 127,500 11,921,250
Broadcast, Radio & TV - 1.30%
Infinity Broadcasting Corp.
(b)............................ 150,000 4,462,500
Computer Hardware - 3.54%
Cisco Systems, Inc. ............ 60,000 3,870,000
EMC Corp. (b)................... 150,000 8,250,000
Computer Software - 5.80%
Compuware Corp. (b)............. 200,000 6,362,500
Microsoft Corp. (b)............. 150,000 13,528,125
Drugs & Health Care - 11.19%
Amgen, Inc. (b)................. 85,000 5,174,375
Biogen, Inc. ................... 150,000 9,646,875
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE> 14
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------------- ------------
<S> <C> <C>
Dial Corp....................... 250,000 $ 9,296,874
Pharmacia & Upjohn, Inc. ....... 250,000 14,203,125
Financial Services - 3.13%
Charles Schwab Corp. ........... 97,500 10,712,813
Food & Beverages - 3.52%
Anheuser-Busch Companies,
Inc. .......................... 170,000 12,059,374
Gas Utilities - 4.03%
Enron Corp. .................... 169,000 13,815,750
Industrial Manufacturing - 5.53%
Tyco International, Ltd. ....... 200,000 18,950,000
Industrial Services - .93%
Waters Corp. (b)................ 60,000 3,187,500
Insurance - 1.92%
American International Group,
Inc. .......................... 56,046 6,560,906
Oil & Gas - 2.43%
Exxon Corp. .................... 50,000 3,856,250
Mobil Corp. .................... 45,000 4,455,000
Retail Trade - 6.04%
Abercrombie & Fitch Co. (b)..... 180,000 8,640,000
Wal-Mart Stores, Inc. .......... 250,000 12,062,500
Semi-Conductors - 3.64%
Uniphase Corp. (b).............. 75,000 12,450,000
Specialty Retailing - 6.80%
Best Buy Co., Inc. ............. 80,000 5,400,000
Home Depot, Inc. (b)............ 90,000 5,799,375
Linens 'n Things, Inc. (b)...... 100,000 4,375,000
Lowes Co's., Inc. .............. 50,000 2,834,375
Tandy Corp. .................... 100,000 4,887,500
Telecommunications - 4.40%
AT&T Corp....................... 167,500 9,348,594
MCI Worldcom, Inc. (b).......... 66,500 5,735,625
----------
Total Common Stocks (cost: $183,077,654) 256,167,124
----------
CONVERTIBLE PREFERRED
STOCKS - 10.31%
Computer Software - 3.50%
Microsoft Corp.................. 120,000 11,992,500
Leisure & Entertainment - 2.98%
Premier Parks, Inc.............. 150,000 10,200,000
Telecommunications - 3.83%
Global TeleSystems Group,
Inc............................ 60,000 3,937,500
Global TeleSystems Group, Inc.
(a)............................ 140,000 9,187,500
----------
Total Convertible Preferred Stocks (cost:
$31,502,788) 35,317,500
----------
CONVERTIBLE BONDS - 2.66%
Computer Hardware - 1.44%
EMC Corp., 3.25% due 03/15/02
(a)............................ $ 1,000,000 4,927,500
Specialty Retailing - 1.22%
Home Depot, Inc., 3.25% due
10/01/01........................ $ 1,500,000 4,171,875
----------
Total Convertible Bonds (cost: $2,710,056) 9,099,375
----------
UNITED STATES TREASURY
NOTES - 3.08%
5.625% due 12/31/02............. $ 2,000,000 1,995,626
5.75% due 11/15/00.............. $ 2,000,000 1,998,750
5.875% due 09/30/02............. $ 1,000,000 1,005,938
5.875% due 11/15/05............. $ 2,000,000 2,007,500
6% due 08/15/00................. $ 500,000 503,125
6% due 07/31/02................. $ 500,000 505,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------------- ------------
6.125% due 08/15/07............. $ 1,000,000 $ 1,010,938
6.375% due 08/15/27............. $ 1,000,000 1,021,563
6.50% due 05/15/05.............. $ 500,000 515,312
----------
Total U.S. Treasury Notes (cost: $10,454,878) 10,563,752
----------
SHORT-TERM SECURITIES - 12.26%
Triparty Repurchase Agreement
dated June 30, 1999 with
Prudential Securities, Inc.,
effective yield of 4.10%, due
July 1, 1999, collateralized by
FHLMC, 5.96%, March 30, 2002
with a value of $42,826,524..... $ 41,980,783 41,980,783
----------
Total Short-Term Securities (cost: $41,980,783) 41,980,783
----------
TOTAL SECURITIES (COST: $269,726,159) - 103.09% 353,128,534
OTHER ASSETS AND LIABILITIES, NET - (3.09)% (10,585,116)
----------
NET ASSETS - 100.00% $342,543,418
----------
----------
Atlas Strategic Growth Fund
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------- ----------
<S> <C> <C>
COMMON STOCKS - 81.59%
Air Travel - 1.43%
Delta Air Lines, Inc............ 21,700 $ 1,250,463
Apparel & Textiles - 5.79%
Dillard's, Inc., Cl. A.......... 38,000 1,334,750
Federated Department Stores,
Inc. (b)........................ 29,100 1,540,481
TJX Companies, Inc.............. 48,400 1,612,324
VF Corp......................... 13,000 555,750
Automotive - 3.07%
Navistar International Corp..... 26,000 1,300,000
Paccar, Inc..................... 25,800 1,377,075
Building Materials - 2.65%
Cincinnatti Milacron, Inc....... 47,500 878,750
Owens Corning................... 41,500 1,426,563
Chemicals & Allied
Products - 3.90%
Nalco Chemical Co............... 40,900 2,121,688
Union Carbide Corp.............. 26,200 1,277,250
Computer Hardware - 10.27%
Apple Computer, Inc. (b)........ 42,500 1,968,281
Data General Corp. (b).......... 95,600 1,392,175
Gateway, Inc. (b)............... 1,900 112,100
Intel Corp...................... 21,100 1,255,450
Seagate Technology, Inc. (b).... 48,700 1,247,938
Sun Microsystems, Inc. (b)...... 22,700 1,563,462
Unisys Corp. (b)................ 36,100 1,405,643
Computer Software - 4.78%
Adode Systems, Inc.............. 18,500 1,519,892
BMC Software, Inc. (b).......... 4,600 248,400
Compuware Corp. (b)............. 44,100 1,402,931
Microsoft Corp. (b)............. 11,000 992,063
</TABLE>
13
<PAGE> 15
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Growth Fund (continued)
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------------- ------------
<S> <C> <C>
Consumer Goods & Services - 7.07%
Cendant Corp. (b)............... 74,300 $ 1,523,150
Cooper Tire & Rubber Co......... 57,700 1,363,163
Maytag Corp..................... 19,400 1,351,938
Tupperware Corp................. 75,400 1,922,700
Financial Services - 7.79%
Bear Stearns Companies, Inc.
(The)........................... 29,100 1,360,425
Capital One Financial Corp...... 23,400 1,303,088
Countrywide Credit Industries,
Inc............................. 35,000 1,496,250
Federal Home Loan Mortgage
Corp............................ 23,500 1,363,000
Federal National Mortgage
Association..................... 18,400 1,258,100
Food Wholesalers - 1.66%
SuperValu, Inc.................. 56,400 1,448,775
Health Care/Supplies &
Services - 9.63%
Amgen, Inc. (b)................. 21,700 1,320,988
C. R. Bard, Inc................. 28,200 1,348,313
HEALTHSOUTH Corp. (b)........... 126,600 1,891,086
Humana, Inc. (b)................ 80,000 1,035,000
Shared Medical Systems Corp..... 19,600 1,278,900
United Healthcare Corp.......... 24,200 1,515,524
Homebuilders/Real Estate - 4.88%
Centex Corp..................... 40,700 1,528,794
Kaufman & Broad Home Corp....... 58,200 1,447,725
Pulte Corp...................... 55,200 1,273,050
Industrial Manufacturing - 1.20%
Tyco International, Ltd......... 11,000 1,042,250
Insurance - 2.41%
Conseco, Inc.................... 44,500 1,354,469
MGIC Investment Corp............ 15,400 748,825
Leisure & Entertainment - .60%
Harrah's Entertainment, Inc..... 23,700 521,400
Manufacturing - 2.91%
Briggs & Stratton Corp.......... 21,900 1,264,725
Ingersoll-Rand Co............... 19,600 1,266,650
Paper & Forest Products - 5.22%
Boise Cascade Corp.............. 33,700 1,449,100
Louisiana-Pacific Corp.......... 67,600 1,605,500
Willamette Industries, Inc...... 32,300 1,487,819
Restaurants - 1.60%
Darden Restaurants, Inc......... 63,700 1,389,456
Retail Trade - 3.32%
Kmart Corp. (b)................. 108,800 1,788,400
Nordstrom, Inc.................. 32,800 1,098,800
Specialty Retailing - 1.41%
Autozone, Inc. (b).............. 40,800 1,229,100
----------
Total Common Stocks (cost: $58,953,315) 71,059,892
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Growth Fund (continued)
- -----------------------------------------------------------------------
shares or value
face amount (note 1)
---------------- ------------
<S> <C> <C>
SHORT-TERM SECURITIES - 18.70%
Triparty Repurchase Agreement
dated June 30, 1999 with
Prudential Securities, Inc.,
effective yield of 4.10%, due
July 1, 1999, collateralized by
FNMAs, 6.50%, July 1, 2029 with
a value of $16,610,880.......... $ 16,285,176 $ 16,285,176
----------
Total Short-Term Securities (cost: $16,285,176) 16,285,176
----------
TOTAL SECURITIES (COST: $75,238,491) - 100.29% 87,345,068
OTHER ASSETS AND LIABILITIES, NET - (.29)% (252,211)
----------
NET ASSETS - 100.00% $ 87,092,857
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
BONDS - 97.98%
Anaheim Public Financing Authority,
Lease Revenue Capital
Appreciation, Series C, FSA
Insured, 0% due 09/01/32.......... $5,000,000 $ 779,350
Anaheim Public Financing Authority,
Lease Revenue Public Improvements
Project, Series A, FSA Insured, 5%
due 03/01/37...................... 6,000,000 5,587,560
Brea, Public Finance Authority
Revenue Tax Allocation,
Redevelopment Project AB,
Un-refunded, Series A, MBIA
Insured, 6.75% due 08/01/22....... 660,000 703,652
Burbank, Glendale, Pasadena Airport
Authority, Airport Revenue
Refunding, AMBAC Insured, 6.40%
due 06/01/10...................... 2,000,000 2,107,980
Central Coast Water Authority,
Revenue Refunding, State Water
Project, Regional Facilities,
Series A, AMBAC Insured, 5% due
10/01/22.......................... 3,250,000 3,074,598
Contra Costa Water District, Water
Treatment Revenue Refunding,
Series G, MBIA Insured, 5.90% due
10/01/08.......................... 3,600,000 3,884,868
Cotati-Rohnert Park Unified School
District, Series A, FGIC Insured,
6% due 08/01/15................... 905,000 925,145
Elk Grove Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured, 6.50% due 12/01/24....... 1,500,000 1,742,715
Fresno Water System Revenue, Water
Remediation Project, Series A,
FGIC Insured, 7.50% due
06/01/05.......................... 715,000 820,899
Kern High School District
Refunding, MBIA Insured, Series
1990-C, 6.25% due 08/01/12........ 1,200,000 1,345,188
Long Beach Harbor Revenue, AMT,
MBIA Insured, 5.25% due
05/15/25.......................... 2,000,000 1,939,340
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE> 16
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Los Angeles, Harbor Development
Revenue, 7.60% due 10/01/18....... $ 140,000 $ 173,513
Los Angeles, Wastewater System
Revenue Refunding,
Series A, MBIA Insured, 5.875% due
06/01/24.......................... 2,250,000 2,333,498
Series B, AMBAC Insured, 6.25% due
06/01/12.......................... 2,500,000 2,691,500
Los Angeles County, Public Works
Financing Authority, Lease Revenue
Refunding, Series B, MBIA Insured,
5.25% due 09/01/15................ 1,000,000 998,840
Los Angeles County, Transportation
Commission, Sales Tax Revenue,
Proposition C,
Second Series A, MBIA Insured,
6.25% due 07/01/13................ 8,980,000 9,681,967
Series B, AMBAC Insured, 6.50% due
07/01/13.......................... 1,750,000 1,855,963
Los Angeles Department of Water and
Power, Electric Plant Revenue,
7.125% due 05/15/30............... 1,875,000 1,966,200
MSR Public Power Agency, San Juan
Project Revenue, Series E, MBIA
Insured, 6.75% due 07/01/11....... 3,000,000 3,200,700
Manhattan Beach Unified School
District, Series A, FGIC Insured,
0% due 09/01/16................... 2,690,000 1,065,025
Marin Municipal Water District
Water Revenue, MBIA Insured, 5.65%
due 07/01/23...................... 2,000,000 2,024,320
Maritime Infrastructure Authority,
Airport Revenue, San Diego
University, Port District Airport,
AMT, AMBAC Insured, 5% due
11/01/20.......................... 9,500,000 8,873,095
Metropolitan Water District,
Southern California Waterworks
Revenue, 5.50% due 07/01/19....... 2,500,000 2,519,525
Series C, 5% due 07/01/27......... 4,000,000 3,748,440
Montebello, Unified School
District, Capital Appreciation,
FGIC Insured, 0% due 08/01/17..... 2,150,000 807,282
Mountain View, Capital Improvements
Financing Authority Revenue, City
Hall Community Theatre, MBIA
Insured, 6.25% due 08/01/12....... 1,500,000 1,585,620
Natomas Unified School District,
1999 Refunding, MBIA Insured,
5.95% due 09/01/21................ 1,000,000 1,082,730
New Haven Unified School District
Refunding, MBIA Insured, 3.40% due
08/01/11.......................... 925,000 961,316
Northern California Power Agency
Public Power Revenue Refunding,
Hydroelectric Project 1, Series A,
AMBAC Insured, 7.50% due
07/01/23.......................... 50,000 63,140
MBIA Insured, 6.25% due
07/01/12.......................... 1,500,000 1,597,905
Oakland Building Authority Lease
Revenue, Elihu M. Harris, Series
A, AMBAC Insured, 5% due
04/01/23.......................... 2,330,000 2,202,922
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
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 $ 2,120,600
Oroville Hospital Revenue, Series
A, 5.40% due 12/01/22............. 1,000,000 972,760
Palm Springs Financing Authority,
Airport Passenger Facility Charge
Revenue, FSA Insured, 5.125% due
01/01/18.......................... 1,000,000 961,290
Palo Alto Unified School District,
Series B, 5.375% due 08/01/18..... 1,250,000 1,247,713
Pasadena, Electric Revenue, 4.75%
due 08/01/24...................... 1,000,000 899,810
Pleasanton Unified School District,
Series F, FGIC Insured,
6.25% due 08/01/14................ 570,000 582,808
6.25% due 08/01/15................ 610,000 623,707
6.25% due 08/01/16................ 650,000 664,606
Puerto Rico, Public Buildings
Authority Revenue, Gtd. Government
Facilities, Series A, AMBAC
Insured, 6.25% due 07/01/14....... 1,000,000 1,119,560
Puerto Rico Commonwealth, Highway &
Transportation Revenue,
Infrastructure, 5% due 07/01/28... 4,000,000 3,711,720
Series A, 5% due 07/01/38......... 5,500,000 5,035,635
Puerto Rico Commonwealth Refunding,
5% due 07/01/27................... 1,000,000 928,980
MBIA Insured, 6.25% due
07/01/12.......................... 1,000,000 1,116,420
Puerto Rico Electric Power
Authority, Power Revenue, Series
EE, 4.75% due 07/01/24............ 1,000,000 901,260
Puerto Rico Ports Authority,
American Airlines, Series A, AMT,
6.30% due 06/01/23................ 1,800,000 1,878,282
Redding Joint Powers Financing
Authority, Electric Systems
Revenue Refunding, Series A, MBIA
Insured, 5.25% due 06/01/15....... 2,000,000 2,002,740
Riverside County, Asset Leasing
Corp., Leasing Revenue, Series B,
MBIA Insured, 5.70% due
06/01/16.......................... 2,000,000 2,095,160
Sacramento Municipal Utility
District, Electric Revenue
Refunding, Series Z, FGIC Insured,
6.45% due 07/01/10................ 2,500,000 2,652,975
San Bernardino County, COP, Medical
Center Financing Project, 5% due
08/01/28.......................... 1,500,000 1,399,935
San Bernardino County
Transportation Authority Sales Tax
Revenue, Series A, FGIC Insured,
6% due 03/01/10................... 2,500,000 2,637,550
San Diego, Public Safety
Communication Project, 6.50% due
07/15/09.......................... 1,525,000 1,730,921
San Diego, Water Utility Fund Net
System Revenue, COP, 4.75% due
08/01/28.......................... 1,000,000 893,060
San Francisco City and County,
Series 95 A & B, FGIC Insured,
5.50% due 06/15/13................ 1,145,000 1,161,202
Series E, 6.50% due 06/15/11...... 2,220,000 2,328,269
</TABLE>
15
<PAGE> 17
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
San Francisco City and County
Airport Commission, International
Airport Revenue Refunding, Second
Series,
Issue 1, AMBAC Insured, 6.30% due
05/01/11.......................... $3,000,000 $ 3,213,444
Issue 1, AMBAC Insured, 6.50% due
05/01/13.......................... 2,000,000 2,150,304
Issue 17, FSA Insured, 4.75% due
05/01/29.......................... 2,500,000 2,239,900
Issue 23B, FGIC Insured, 5% due
05/01/24.......................... 3,000,000 2,832,810
San Francisco City and County
Public Utilities Commission Water
Revenue Refunding, Series A, 6%
due 11/01/15...................... 1,000,000 1,041,510
San Francisco City and County
Redevelopment Agency, Hotel Tax
Revenue, FSA Insured, 5% due
07/01/25.......................... 3,750,000 3,536,738
San Francisco City and County Sewer
Revenue Refunding, AMBAC Insured,
6% due 10/01/11................... 2,280,000 2,424,552
San Joaquin Hills Transportation
Corridor Agency, Toll Road
Revenue,
0%/7.40% due 01/01/07 (d)......... 1,000,000 994,230
0%/7.50% due 01/01/09 (d)......... 1,000,000 1,025,830
San Jose Redevelopment Agency Tax
Allocation, Merged Area
Redevelopment Project Refunding,
MBIA Insured, 5% due 08/01/20..... 2,500,000 2,371,900
San Mateo County, Joint Powers
Authority, Lease Revenue Capital
Projects, Series A, 5.125% due
07/15/32.......................... 2,145,000 2,038,672
Santa Barbara, Revenue COP,
Retirement Services, 5.75% due
08/01/20.......................... 2,000,000 2,021,020
Santa Clara Electric Revenue, 1991,
Series A, MBIA Insured, 6.25% due
07/01/19.......................... 3,750,000 3,988,350
Santa Margarita, Dana Point
Authority Revenue Refunding,
Improvement District 3, 3A, 4 and
4A, Series B, MBIA Insured,
7.25% due 08/01/07................ 500,000 586,390
7.25% due 08/01/13................ 2,000,000 2,432,080
Saugus Unified School District,
Series A, MBIA Insured, 5.65% due
09/01/11.......................... 2,035,000 2,131,133
Southern California Public Power
Authority Power Project Revenue
Refunding, Hydroelectric Hoover
Uprating Project, Series A, 6.625%
due 10/01/05...................... 600,000 642,516
Southern California Rapid Transit
District, COP, Workers
Compensation Fund, MBIA Insured,
6% due 07/01/10................... 1,000,000 1,048,840
State, Refunding,
5% due 10/01/23................... 2,000,000 1,882,080
AMBAC Insured, 5.25% due
06/01/21.......................... 1,000,000 983,340
FGIC Insured, 5% due 02/01/23..... 2,500,000 2,364,200
Series BH, AMT, 5.60% due
12/01/32.......................... 1,000,000 1,015,010
State, Various Purpose, 6.125% due
10/01/11.......................... 1,000,000 1,103,990
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
State Department of Water Resources
Central Valley Project Revenue,
Series J-2, 6.125% due 12/01/13... $2,225,000 $ 2,326,571
Series J-3, Prerefunded, 5.50% due
06/01/01.......................... 810,000 833,158
Series J-3, Unrefunded, 5.50% due
12/01/23.......................... 2,190,000 2,189,891
Series O, 5% due 12/01/15......... 2,000,000 1,953,940
State Educational Facilities
Authority Revenue Refunding,
Los Angeles College Chiropractic,
5.60% due 11/01/17................ 1,810,000 1,811,249
Loyola Marymount University, MBIA
Insured, 5% due 10/01/22.......... 700,000 662,221
Pepperdine University, MBIA
Insured, 6.10% due 03/15/14....... 2,595,000 2,765,388
Santa Clara University, MBIA
Insured, 5.75% due 09/01/18....... 3,255,000 3,344,740
University of Southern California,
Series C, 5.125% due 10/01/28..... 1,000,000 948,460
State Health Facilities Financing
Authority Revenue Refunding,
Scripps Health, Series C, MBIA
Insured, 5% due 10/01/22.......... 500,000 471,125
Stanford Health Care, Series A,
FSA Insured, 5% due 11/15/28...... 1,000,000 933,000
State Housing Finance Agency
Revenue Home Mortgage,
Multi-Family Program, Series B,
AMT, AMBAC Insured, 6.05% due
08/01/16.......................... 2,000,000 2,086,440
Series B, AMT, AMBAC Insured,
5.25% due 02/01/28................ 2,000,000 1,900,680
Series H, AMT, 6.15% due
08/01/16.......................... 2,020,000 2,123,101
Series I, AMT, MBIA Insured, 5.65%
due 08/01/17...................... 2,400,000 2,418,216
Series K, MBIA Insured, 6.15% due
08/01/16.......................... 3,000,000 3,157,530
Series L, AMT, MBIA Insured, 5.55%
due 08/01/05...................... 300,000 312,060
Series Q, MBIA Insured, 5.85% due
08/01/16.......................... 1,000,000 1,046,470
State Pollution Control Financing
Authority, Pollution Control
Revenue, MBIA Insured, Pacific Gas
& Electric Co., Series B, 5.85%
due 12/01/23...................... 2,000,000 2,043,820
State Public Works Board, Lease
Revenue, AMBAC Insured, Various
University of California Projects,
Series C, 5.125% due 09/01/22..... 1,475,000 1,421,634
State Rural Home Mortgage Finance
Authority, Single Family Revenue
Refunding, Series C, AMT, 7.50%
due 08/01/27...................... 1,065,000 1,204,440
Statewide Communities Development
Authority, COP, 6% due 08/01/28... 2,000,000 1,967,440
Statewide Communities Development
Authority, Lease Revenue, United
Airlines, AMT, Series A, 5.70% due
10/01/33.......................... 4,000,000 4,002,680
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE> 18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Statewide Communities Development
Authority, Multi-Family Revenue,
Archstone/LeClub-G, 5.30% due
06/01/29.......................... $2,000,000 $ 1,999,900
Residential-B, 5.20% due
12/01/29.......................... 2,500,000 2,496,100
Stockton Health Facilities Revenue,
Dameron Hospital, Series A, 5.70%
due 12/01/14...................... 200,000 199,177
South Whittier, Elementary School
District, Capital Appreciation,
Series A, FGIC Insured, 0% due
08/01/13.......................... 500,000 238,654
Series A, FGIC Insured, 0% due
08/01/14.......................... 250,000 112,394
Truckee, Donner Public Utility
District, COP, Water System
Improvement Project, MBIA Insured,
6.75% due 11/15/21................ 1,000,000 1,082,480
Turlock Irrigation District Revenue
Refunding, Series A, MBIA Insured,
6% due 01/01/10................... 1,000,000 1,092,050
Upland, COP, San Antonio Community
Hospital, 5% due 01/01/18......... 3,195,000 2,958,538
Vallejo Revenue Water Improvement
Project, Series B, FGIC Insured,
6.50% due 11/01/14................ 4,000,000 4,417,320
Watsonville Water Revenue
Refunding, Series A, MBIA Insured,
6% due 05/15/16................... 1,915,000 1,996,905
Westside Unified School District
Refunding, Series C, AMBAC
Insured, 6% due 08/01/14.......... 300,000 331,163
----------
Total Bonds (cost: $207,216,001) 214,929,533
----------
VARIABLE RATE DEMAND NOTES* - 1.42%
Irvine Ranch Water District #16
Revenue Bonds, 2.90% due
08/01/16.......................... 200,000 200,000
Orange County, Sanitation
Districts, COP Numbers 1, 3, 5, 7,
11, 13 and 14,
2.90% due 08/01/15................ 100,000 100,000
State Health Facilities Financing
Authority Revenue Refunding,
Sutter Health, Series A, 2.90% due
03/01/20.......................... 300,000 300,000
State Pollution Control Financing
Authority, Pollution Control
Revenue,
Shell Oil Co., Project Series C,
2.85% due 11/01/00................ 500,000 500,000
Statewide Communities Development
Authority, COP, 3.75% due
4/01/28........................... 2,000,000 2,000,000
----------
Total Variable Rate Demand Notes (cost:
$3,100,000) 3,100,000
----------
TOTAL SECURITIES (COST: $210,316,001) - 99.40% 218,029,533
OTHER ASSETS AND LIABILITIES, NET - .60% 1,325,712
----------
NET ASSETS - 100.00% $219,355,245
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
BONDS - 98.28%
Alabama State Docks Department,
Docks Facilities Revenue, AMT,
MBIA Insured, 6.10% due
10/01/13.......................... $1,000,000 $ 1,060,820
Anchorage, Alaska, Electric Utility
Revenue Refunding, Senior Lien,
MBIA Insured, 8% due 12/01/10..... 985,000 1,231,840
Birmingham, Michigan, City School
District, FSA Insured, 4.75% due
11/01/24.......................... 2,000,000 1,798,620
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 1,149,240
Central Coast Water Authority,
California Revenue Refunding State
Water Project, Regional
Facilities, Series A, AMBAC
Insured, 5% due 10/01/22.......... 1,000,000 946,030
Chicago, Illinois, Metropolitan
Water Reclamation District,
Greater Chicago Capital
Improvement, 7.25% due 12/01/12... 1,500,000 1,802,084
Chicago, Illinois, Park District
Aquarium & Museum, Series B, 6.50%
due 11/15/13...................... 1,500,000 1,663,065
Chicago, Illinois, Public Building
Commission Mortgage Revenue, Board
of Education, Series A, MBIA
Insured, 7.125% due 01/01/15...... 125,000 132,809
Cleveland, Ohio, Waterworks Revenue
First Mortgage Refunding, Series
F-92B, AMBAC Insured, 6.25% due
01/01/16.......................... 1,000,000 1,057,900
Colorado, Housing Finance
Authority, Single Family Program,
Senior Series A-1, AMT, 7.40% due
11/01/27.......................... 875,000 977,638
Colorado, Public Highway Authority,
E-470, Capital Appreciation,
Series B, MBIA Insured, 0% due
09/01/21.......................... 2,000,000 582,180
Colorado Springs, Colorado,
Utilities Revenue Refunding,
Series A, 6.50% due 11/15/15...... 2,000,000 2,131,740
Cook County, Illinois, MBIA
Insured, 7.25% due 11/01/07....... 620,000 716,379
Series C, FGIC Insured, 6% due
11/15/08.......................... 500,000 537,415
Dallas, Fort Worth, Texas, Regional
Airport Revenue, Joint Dallas-Fort
Worth, AMT, MBIA Insured, 5.50%
due 11/01/23...................... 1,500,000 1,482,030
Delaware Valley, Pennsylvania,
Regional Financing Authority,
Local Government Revenue, Series
A, AMBAC Insured, 5.50% due
08/01/28.......................... 1,000,000 1,023,440
Harris County, Texas Toll Road,
Senior Lien, FGIC Insured, 5.375%
due 08/15/20...................... 1,000,000 980,760
Hudsonville, Michigan, Public
Schools, FGIC Insured, 5.15% due
05/01/27.......................... 1,000,000 950,340
</TABLE>
17
<PAGE> 19
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Illinois Development Finance
Authority, Pollution Control
Revenue, Public Service Co.,
Series C-2, 5.70% due 08/15/26.... $1,000,000 $ 1,011,500
Illinois Health Facilities
Authority Revenue Refunding,
Northwestern Medical Facilities
Foundation, AMT, MBIA Insured,
5.125% due 11/15/28............... 1,000,000 927,790
Sherman Hospital Project, MBIA
Insured, 6.75% due 08/01/11....... 1,000,000 1,071,210
Indiana State Office Building
Commission, Capital Complex
Revenue, Senate Avenue Parking,
Series A, MBIA Insured, 7.25% due
07/01/12.......................... 50,000 52,798
Indianapolis, Indiana, Airport
Authority Revenue, Special
Facilities, Federal Express Corp.,
AMT, 7.10% due 01/15/17........... 500,000 549,360
Jefferson County, Colorado, School
District, #R-001, MBIA Insured,
6.50% due 12/15/10................ 400,000 452,216
Jones County, Mississippi Hospital
Revenue, South Central Regional
Medical Center, 5.50% due
12/01/17.......................... 1,000,000 959,280
Kansas City, Kansas, Utility System
Revenue Refunding and Improvement,
FGIC Insured, 6.375% due
09/01/23.......................... 1,010,000 1,090,447
Prerefunded, 6.375% due
09/01/04.......................... 490,000 540,901
Kern, California High School
District, Series 1990-C Election,
MBIA Insured, 6.25% due
08/01/10.......................... 545,000 611,299
Lakota, Ohio, Local School
District, AMBAC Insured, 7% due
12/01/09.......................... 1,740,000 2,021,393
Long Island Power Authority, New
York Electric System Revenue,
Series A, 5.25% due 12/01/26...... 1,000,000 952,540
Louisiana Public Facilities
Authority Hospital Revenue, Touro
Infirmary Project, Series A, 5.50%
due 08/15/29...................... 1,000,000 959,990
Maine State Housing Authority
Mortgage Purchase, Series A-1,
AMT, AMBAC Insured, 6.40% due
11/15/14.......................... 1,400,000 1,473,374
Maricopa County, Arizona, Unified
School District 69, Paradise
Valley Refunding, MBIA Insured,
6.35% due 07/01/10................ 600,000 664,158
Massachusetts Bay Transportation
Authority, General Transportation
System, Series B, 5% due
03/01/28.......................... 1,000,000 925,490
Massachusetts State Health and
Educational Facilities Authority
Revenue, Northeastern University,
Series E, MBIA Insured, 6.55% due
10/01/22.......................... 500,000 537,880
Massachusetts State Industrial
Financing Agency Revenue,
Wentworth Institute of Technology,
5.65% due 10/01/18................ 500,000 486,800
Massachusetts State Turnpike
Authority, Metropolitan Highway
System Revenue, Series A, MBIA
Insured, 5% due 01/01/27.......... 1,000,000 929,530
</TABLE>
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Metropolitan Pier & Exposition
Authority, Illinois, Dedicated
State Tax Revenue, McCormick Place
Expansion Project,
Capital Appreciation, FGIC
Insured, 0% due 06/15/29.......... $4,000,000 $ 727,920
Prerefunded, Series A, 7.25% due
06/15/05.......................... 35,000 39,513
Unrefunded, Series A, 7.25% due
06/15/05.......................... 215,000 241,514
Metropolitan Transportation
Authority, New York,
Transportation Facilities Revenue,
Series 8, 5.375% due 07/01/21..... 1,000,000 970,510
Michigan State Hospital Financing
Authority Revenue, Genesys
Regional Medical, Series A, 5.50%
due 10/01/27...................... 1,000,000 929,690
Michigan State University Revenue,
Series A, 6.125% due 08/15/08..... 500,000 531,065
Mississippi Higher Education
Assistance Corp., Student Loan
Revenue, Series C, AMT, 6.05% due
09/01/07.......................... 745,000 763,491
Montebello, California, Unified
School District, Capital
Appreciation, FGIC Insured,
0% due 08/01/15................... 1,500,000 633,585
0% due 08/01/16................... 1,000,000 397,700
Nevada Housing Division, Single
Family Mortgage, Series C, AMT,
6.60% due 04/01/14................ 940,000 988,307
New York City, New York, Industrial
Development Authority, Special
Facilities, United Airlines, Inc.,
AMT, 5.65% due 10/01/32........... 1,000,000 994,700
New York City, New York, Municipal
Water Finance Authority,
Series F, 6% due 08/01/11......... 500,000 528,275
Series I, 5.875% due 03/15/14..... 500,000 519,450
Series L, 5.75% due 08/01/12...... 500,000 517,775
New York State Dormitory Authority
Revenue,
City University System, FGIC
Insured, 5% due 07/01/26.......... 1,500,000 1,399,125
Pooled Capital Program, FGIC
Insured, 7.80% due 12/01/05....... 25,000 25,779
New York State Highway Authority,
Service Contract Revenue, Local
Highway and Building, 5% due
04/01/17.......................... 1,000,000 935,100
New York State Urban Development
Corp. Revenue, Correctional
Facilities, Series A, 5.50% due
01/01/16.......................... 1,000,000 1,004,330
Northern California Power Agency,
Public Power Revenue Refunding,
Hydroelectric Project 1, Series A,
MBIA Insured, 6.25% due
07/01/12.......................... 750,000 798,953
Philadelphia, Authority for
Industrial Development Revenue,
Franklin Institute Project, 5.20%
due 06/15/26...................... 1,000,000 916,760
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE> 20
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Pinal County, Arizona, Unified
School District 43, Apache JCT,
Series A, FGIC Insured, 6.80% due
07/01/09.......................... $ 425,000 $ 485,648
Puerto Rico Commonwealth Highway &
Transportation Authority,
Transportation Revenue,
Infrastructure, 5% due 07/01/28... 1,000,000 927,930
Rhode Island State Health and
Educational Building Corp.,
Hospital Revenue, Newport
Hospital, 5.25% due 07/01/19...... 1,000,000 935,390
Sacramento, California, Municipal
Utility District Electric Revenue
Refunding, Series Z, FGIC Insured,
6.45% due 07/01/10................ 600,000 636,714
Superior, Wisconsin, Limited
Obligation Revenue Refunding,
Midwest Energy Resources, Series
E, FGIC Insured, 6.90% due
08/01/21.......................... 500,000 594,595
Tallassee, Alabama, Industrial
Development Board Revenue
Refunding, Dow United Technologies
Corp., Series B, 6.10% due
08/01/14.......................... 1,000,000 1,090,920
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 1,079,310
Tulsa, Oklahoma, Airport
Transportation Revenue, American
Airlines, Inc., AMT, 7.375% due
12/01/20.......................... 2,000,000 2,112,240
Utah State Board of Regents Student
Loan Revenue, Series N, AMT, AMBAC
Insured, 5.90% due 11/01/07....... 1,000,000 1,043,210
Vermont Educational & Health
Buildings Financing Agency,
Norwich University Project, 5.50%
due 07/01/21...................... 1,000,000 941,680
Washington State Public Power
Supply System Refunding Revenue,
Nuclear Project 2 Revenue
Refunding,
Series A, 7.25% due 07/01/06...... 500,000 567,265
Series B, 7% due 07/01/12......... 140,000 147,434
West Virginia School Building
Authority Revenue, Series A, MBIA
Insured, 7.25% due 07/01/15....... 50,000 52,808
Wisconsin State Health and
Educational Facilities Authority
Revenue, Aurora Medical Group,
Inc. Project, FSA Insured,
5.75% due 11/15/07................ 500,000 525,370
6% due 11/15/10................... 1,000,000 1,084,980
----------
Total Bonds (cost: $60,692,872) 62,531,322
----------
VARIABLE RATE DEMAND NOTES* - .52%
East Baton Rouge Parish, Louisiana
Pollution Control Revenue, Rhone
Poulenc Inc. Project, 3.55% due
12/01/11.......................... 130,000 130,000
</TABLE>
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
Franklin County, Ohio Health System
Revenue, 3.80% due 07/01/15....... $ 200,000 $ 200,000
----------
Total Variable Rate Demand Notes (cost $330,000) 330,000
----------
TOTAL SECURITIES (COST: $61,022,872) - 98.80% 62,861,322
OTHER ASSETS AND LIABILITIES, NET - 1.20% 760,488
----------
NET ASSETS - 100.00% $ 63,621,810
----------
----------
Atlas Strategic Income Fund
- --------------------------------------------------------------------
face amount value
or units (note 1)
(j)
---------- ----------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS - 18.43%
Commercial - 3.70%
Asset Securitization Corp.,
Commercial Sub. Bonds, Series
1997-D5, Cl. B2, 6.93% due
02/14/41.......................... $ 400,000 $ 281,688
First Chicago/Lennar Trust,
Commercial Collateral Strip
Interest,
Series 1997-CHL1, Cl. D, 8.13% due
05/29/08 (a)(c)(f)................ 100,000 77,375
Series 1997-CHL1, Cl. E, 8.13% due
02/28/11 (a)(c)(f)................ 150,000 99,797
GMAC Commercial Mortgage
Securities, Inc.,
Series 1997-C1, Cl. G, 7.414% due
09/30/06.......................... 120,000 87,038
Series 1997-C1, Cl. X, 1.6287% due
07/15/27.......................... 975,000 82,266
Series 1997-C2, Cl. F, 6.75% due
04/15/29.......................... 100,000 64,813
Morgan Stanley Capital I, Inc.,
Commercial Sub. Bonds, Series
1997-RR, Cl. D, 7.74% due 04/30/39
(a)(c)(f)......................... 200,000 187,897
Series 1997-RR, Cl. E, 7.67% due
04/30/39 (a)(c)(f)................ 75,000 70,461
Series 1997-HF1, Cl. F, 6.86% due
02/15/10 (a)(c)(f)................ 50,000 42,221
Series 1997-RR, Cl. F, 7.74% due
11/01/07 (a)(c)(f)................ 175,000 137,867
Series 1997-XL1, Cl. G, 7.69% due
10/03/30 (a)(c)(f)................ 60,000 57,140
NC Finance Trust, Series 1999-I,
Cl. ECFD, 8.75% due 12/25/28
(f)............................... 205,761 203,832
Norwest Asset Securities
Corporation, Series 1998-12, Cl.
A3, 6.75% due 06/25/28............ 190,718 190,301
Nykredit AS, 7% Mortgage-Backed
Security, Series ANNI, due
10/01/29 (DKK).................... 1,688,000 247,065
Residential Asset Securitization
Trust, Series 1997-A2, Cl. A8,
7.75% due 04/25/27................ 500,000 503,807
</TABLE>
19
<PAGE> 21
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Salomon Brothers Mortgage
Securities VII, Series 1996-C1,
Cl. F, 9.18% due 02/20/26......... $ 250,000 $ 194,375
Salomon Brothers, Inc., Commercial
Mortgage Pass-Through
Certificates, Series 1998-1A, 5%
due 12/15/00 (f).................. 49,096 47,440
Structured Asset Securities Corp.,
Commercial Mtg. Pass-Through
Certificates, Series 1997-LL1, Cl.
F, 7.30% due 04/12/12 (a)(f)...... 50,000 37,766
Government Agency - 14.31%
Federal Home Loan Mortgage Corp.,
Interest-Only Stripped
Mortgage-Backed Security, Series
177, 7% due 07/01/26 (g).......... 1,371,622 389,652
Series 151, Cl. F, 9% due
05/15/21.......................... 311,015 323,752
Federal National Mortgage
Association, 6.50% due 07/01/28... 800,000 771,752
6.50% due 04/01/29................ 398,309 384,384
7% due 07/01/26................... 473,643 469,457
7% due 01/01/28................... 1,124,714 1,113,368
7% due 07/01/28................... 1,600,000 1,581,504
Government National Mortgage
Association,
7% due 03/15/28................... 4,271,745 4,218,008
7% due 07/15/28................... 873,722 862,731
Multi-Family - .42%
Criimi Mae, Inc., Trust I, Series
1996-C1, Cl. A2, 7.56% due
06/30/33 (a)...................... 100,000 96,594
Mortgage Capital Funding, Inc.,
Multi-family Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl.
G, 7.15% due 06/15/06 (a)......... 250,000 203,158
----------
Total Mortgage-Backed Obligations (cost:
$13,579,039).................................... 13,027,509
----------
U.S. GOVERNMENT OBLIGATIONS - 24.98%
U.S. Treasury Bonds:
11.875% due 11/15/03 (l)(m)....... 2,170,000 2,667,744
10.75% due 02/15/03............... 510,000 591,600
9.375% due 02/15/06 (k)(m)........ 1,704,000 2,022,968
8.125% due 08/15/21............... 235,000 285,892
6.50% due 11/15/26................ 350,000 362,250
6.125% due 11/15/27............... 196,000 194,163
U.S. Treasury Notes:
5.50% due 01/31/03................ 3,415,000 3,391,522
5.50% due 03/31/03................ 900,000 893,250
6.875% due 05/15/06............... 3,520,000 3,705,902
6.50% due 10/15/06................ 1,165,000 1,202,134
6.125% due 08/15/07............... 1,600,000 1,617,501
U.S. Treasury Strips:
0% due 02/15/19................... 2,500,000 726,148
----------
Total U.S. Government Obligations (cost:
$17,970,368) 17,661,074
----------
FOREIGN GOVERNMENT OBLIGATIONS - 17.82%
Argentina - 1.46%
Argentina (Republic of), Bonds,
Bonos de Consolidacion de Deudas,
Series Previs 2, 5.01% due
04/01/01 (c)...................... 9,148 5,137
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
City of Buenos Aires, Series 3,
10.50% Notes due 05/28/04 (ARP)... $ 40,000 $ 32,204
Notes, 11.75% due 02/12/07
(ARP)............................. 110,000 88,286
Series Pro1, 3.01% Bonds due
04/01/07 (ARP) (c)................ 362,628 253,329
Series XW, 11% Bonds due
12/04/05.......................... 480,000 440,400
Unsec. Unsub. Notes, 8.75% due
07/10/02 (ARP).................... 260,000 212,708
Australia - .09%
Queensland Treasury Corp., Series
07, 8% Gtd. Bonds due 09/14/07
(AUD)............................. 90,000 65,364
Brazil - 2.85%
Brazil (Federal Republic of),
Capitalization Bonds, 20 years, 8%
due 04/15/14 (c).................. 1,555,062 975,802
IDU, Series A, 6.063% Debentures
due 01/01/01 (c).................. 469,860 446,954
Series L, 11.625% Bonds due
04/15/04.......................... 165,000 153,038
18 Year Debt Conversion Bonds,
Bearer, Series L, 5.94% due
04/15/12 (c)...................... 100,000 60,000
18 Year Debt Conversion Bonds,
Registered, Series L, 5.94% due
04/15/12 (c)...................... 250,000 150,000
30 Year Discount Bonds, 5.875% due
04/15/24 (c)...................... 365,000 225,844
Bulgaria - .86%
Bulgaria (Republic of), Discount
Bonds, 5.875% due 07/28/24 (e).... 430,000 291,325
Front-Loaded Interest Reduction
Bearer Bonds, Tranche A, 2.50% due
07/28/12 (e)...................... 490,000 291,550
Past Due Interest Bonds, 5.875%
Debentures due 07/28/11 (c)....... 40,000 27,000
Colombia - .21%
Colombia (Republic of),
10.875% Unsub. Bonds due
03/09/04.......................... 30,000 28,650
8.625% Unsub. Unsec. Bonds due
04/01/08.......................... 155,000 118,575
Ecuador - .23%
Ecuador (Republic of), Bearer Past
Due Interest Bonds, 3.25% due
02/27/15 (c)...................... 218,684 71,072
Registered Past Due Interest
Debentures, 3.25% due 02/27/15
(c)............................... 172,645 55,894
6% Gtd. 30 Years Discount Bonds
due 02/28/25 (c).................. 70,000 32,725
Finland - .30%
Finland (Government of), 9.50%
Bonds due 03/15/04 (EUR).......... 168,187 212,918
France - .44%
France (Government of) O.A.T.,
5.50% Bonds due 10/25/07 (EUR).... 155,569 171,853
Principal, Series 0C25, Zero
Coupon Bonds due 10/25/25 (EUR)... 610,000 141,341
Germany - .80%
Germany (Government of),
Bundesrepublic, Series 89, 7%
Bonds due 10/20/99 (EUR).......... 360,000 375,744
Treuhandanstalt, 7% due 11/25/99
(EUR)............................. 180,000 188,607
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE> 22
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Great Britain - 1.03%
United Kingdom Treasuries, 8% due
06/10/03 (GBP).................... $ 425,000 $ 730,144
Indonesia - .08%
Indonesia (Republic of), 7.75%
Unsec. Bonds due 08/01/06......... 70,000 56,762
Italy - 1.45%
Italy (Republic of)
Treasury Bonds, Buoni del Tesoro
Poliennali,
6% due 11/01/07 (EUR)............. 135,000 150,714
8.50% Debentures due 01/01/04
(EUR)............................. 487,063 593,210
8.75% due 07/01/06 (EUR).......... 197,721 254,565
10.50% due 04/01/05 (EUR)......... 20,658 27,871
Ivory Coast - .07%
Ivory Coast (Government of) Past
Due Interest, 3% Bonds due
03/29/18 (a)(e)................... 137,475 48,116
Japan - .51%
Japan (Government of), Series 138,
6.40% Bonds due 03/20/01 (JPY).... 40,000,000 364,240
Jordan - .01%
Hashemite (Kingdom of Jordan)
Bonds, Series DEF, 5.50% due
12/23/23 (e)...................... 10,000 6,013
Mexico - 2.61%
United Mexican States Bonds,
Series B, 6.25% Sec. Debentures
due 12/31/19...................... 250,000 181,875
Series W-A, 6.25% Sec. Bonds due
12/31/19.......................... 350,000 259,000
Series XW, 10.375% Bonds due
02/17/09.......................... 145,000 145,544
6.63% Sec. Debentures due
12/31/19.......................... 1,990,000 290,249
11.375% Bonds due 09/15/16........ 920,000 965,540
Nigeria - .26%
Nigeria (Federal Republic of)
Promissory Notes, 5.09% due
01/05/10 (e)...................... 465,000 182,513
New Zealand - .46%
New Zealand (Government of),
Series 302, 10% Bonds due 03/15/02
(NZD)............................. 550,000 322,327
Norway - .42%
Norway (Government of), 9.50%
Bonds due 10/31/02 (NOK).......... 2,100,000 297,917
Panama - .33%
Panama (Republic of),
8.25% Notes due 04/22/08.......... 155,000 134,850
9.375% Bonds due 04/01/29......... 30,000 28,275
Past Due Interest, 20 years, 4%
Debentures due 07/17/16 (c)....... 52,733 38,759
Pycsa Panama SA., 10.28% Sr. Sec.
Bonds due 12/15/12 (a)(f)......... 45,000 35,100
Peru - .69%
Peru (Republic of),
Past Due Interest, 4.50% Bonds due
03/07/17 (e)...................... 200,000 120,000
Zero Coupon, Sr. Notes due
02/28/16.......................... 785,190 371,003
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Poland - .67%
Poland (Republic of),
Bond, Series 1003, 12% due
10/12/03 (PLZ).................... $ 270,000 $ 71,603
Treasury Bill, Series 52, due
08/11/99.......................... 120,000 30,139
Treasury Bill, Series 52, due
10/13/99.......................... 210,000 51,645
Unsec. Non-US Global Bearer Bond,
Series PDIB, 5% due 10/27/14
(e)............................... 370,000 322,825
Russia - .58%
Russia (Government of),
CSFB Russian Swap,
28.9% Bond due 07/14/99 (RUR)
(b)(f)............................ 370,000 4,107
29.8% Bond due 07/14/99 (RUR)
(b)(f)............................ 200,000 2,220
Federal Loan Bonds, Series 5022,
15% due 02/23/00 (b)(f)........... 1,279,000 13,599
Federal Loan Bonds, Series 7010,
30%/10% due 09/17/03 (RUR) (d).... 833,770 16,466
Interest Notes, Series US, 6.06%
debentures due 12/15/15 (b)(c).... 2,017 315
Principal Loans Debentures, 24
Years, 6.06% due 12/15/20
(b)(c)............................ 1,330,000 161,263
Russian Federation, 8.75% Unsub.
Bonds due 07/24/05................ 350,000 173,688
Russian Federation, 11% Unsec.
Unsub. Bonds due 07/24/18......... 80,000 39,000
South Africa - .43%
South Africa (Republic of), Series
153, 13% Bonds due 08/31/10
(ZAR)............................. 2,061,000 301,434
Spain - .18%
Spain (Kingdom of),
4.50% due 07/30/04 (EUR).......... 105,877 106,693
6% due 01/31/08 (EUR)............. 19,232 21,521
Sweden - .32%
Sweden (Kingdom of),
Series 1033, 10.25% Bonds due
05/05/03 (SEK).................... 1,600,000 226,251
Venezuela - .47%
Venezuela (Republic of),
9.25% Unsec. Bonds due 09/15/27... 460,000 297,850
13.625% Bonds due 08/15/18........ 40,000 35,320
Vietnam - .01%
Vietnam (Government of), 3% Par
Bonds due 03/12/28................ 12,000 3,420
----------
Total Foreign Government Obligations (cost:
$13,221,017) 12,600,266
----------
LOAN PARTICIPATIONS - .26%
Central Bank Asia Loan
Participation Agreement, Series 4,
Gtd. 8.625% Notes due 08/25/02
(f)............................... 70,000 59,150
Morocco (Government of) Loan
Participation Agreement, Tranche
A, 5.91% due 01/01/09 (c)(f)...... 171,428 121,714
----------
Total Loan Participations (cost: $192,930) 180,864
----------
</TABLE>
21
<PAGE> 23
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
CORPORATE BONDS AND NOTES - 35.48%
Aerospace - .26%
Fairchild Corp. (The), Cl. A,
10.75% Sr. Sub. Notes due 04/15/09
(a)............................... $ 150,000 $ 147,000
Greater Toronto Airport, 5.40%
Debentures due 12/03/02 (CAD)..... 55,000 36,729
Air Travel - .23%
Atlas Air, Inc., 10.75% Sr. Notes
due 08/01/05...................... 50,000 51,000
Trans World Airlines, Inc., 11.50%
Sr. Sec. Notes due 12/15/04....... 125,000 110,156
Apparel & Textiles - .12%
Unifrax Investment Corp., 10.50%
Sr. Notes due 11/01/03............ 50,000 51,000
William Carter Co., 10.375% Sr.
Sub. Notes due 12/01/06........... 35,000 35,613
Automotive - .76%
Collins & Aikman Products Co.,
11.50% Gtd. Sr. Sub. Notes due
04/15/06.......................... 100,000 101,000
Hayes Wheels International, Inc.,
9.125% Sr. Sub. Notes due
07/15/07.......................... 50,000 50,125
11% Unsec. Sr. Sub. Notes due
07/15/06.......................... 100,000 108,250
HDA Parts System, Inc., 12% Sr.
Sub. Notes due 08/01/05 (a)....... 75,000 75,750
Oxford Automotive, Inc., 10.125%
Sr. Sub. Notes due 06/15/07....... 200,000 200,000
Banks - 1.41%
Banco Nacional de Mexico SA, 11%
Cv. Jr. Sub. Notes due 07/15/03
(f)............................... 20,000 19,750
Bayerische Vereinsbank, Series
661, 5% Sec. Bonds due 07/28/04
(DEM)............................. 76,477 81,844
Export Credit Bank of Turkey,
7.56% due 08/18/00 (c)(f)......... 250,000 246,336
Financiera Energetica Nacional,
9.375% Unsec. Unsub. Notes due
06/15/06 (a)...................... 100,000 87,005
Hypothekenbank In Essen AG,
Registered, 4.25% Sec. Bonds due
07/06/2009 (EUR).................. 150,000 147,142
Industrial Bank of Japan Preferred
Capital Co. (The) LLC, 8.79% Bonds
due 12/29/49 (a)(c)............... 125,000 104,688
Ongko International Finance Co.
BV, 10.50% Gtd. Notes due 03/29/04
(a)(b)(f)......................... 40,000 1,300
PT Bank Negara Indonesia, 7.625%
Sr. Unsec. Notes due 02/15/07..... 100,000 72,000
Shoeshone Partners Trust, 8% Sr.
Notes due 05/31/02 (a)(f)......... 250,000 237,023
Broadcast, Radio & TV - 2.76%
Adelphia Communications Corp.,
8.375% Sr. Notes due 02/01/08..... 25,000 24,063
9.25% Sr. Notes due 10/01/02...... 50,000 50,625
10.50% Sr. Notes due 07/15/04..... 50,000 53,375
Azteca Holdings SA, 11% Sr. Sec.
Notes due 06/15/02................ 35,000 29,750
Bresnan Communication Co.
Holdings, 0%/9.25% Sr. Discount
Notes due 02/01/09 (a)(d)......... 100,000 65,000
Capstar Broadcasting Partners,
Inc., 9.25% Sr. Sub. Notes due
07/01/07.......................... 200,000 203,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
CBS Radio, Inc., 11.375%
Exchangeable Unsec. Sub.
Debentures due 01/15/09 (h)....... $ 75,200 $ 85,258
Chancellor Radio Broadcasting Co.,
8.75% Sr. Sub. Notes due
06/15/07.......................... 50,000 49,813
CSC Holdings, Inc., 10.50% Sr.
Sub. Debentures due 05/15/16...... 50,000 56,563
EchoStar DBS Corp., 9.375% Unsec.
Sr. Notes due 02/01/09 (a)........ 210,000 213,675
Emmis Communications Corp., 8.125%
Sr. Sub. Notes due 03/15/09 (a)... 150,000 142,688
Falcon Holdings Group L.P.,
0%/9.285% debentures due 04/15/10
(d)............................... 100,000 70,000
Helicon Group LP/Helicon Capital
Corp., Series B, 11% Sr. Sec.
Notes due 11/01/03................ 100,000 104,500
Northeast Optic Network, 12.75%
Unsec. Sr. Notes due 08/15/08..... 75,000 77,625
Optel, Inc., 13% Sr. Notes due
02/15/05.......................... 85,000 64,600
Paxson Communications Corp.,
11.625% Sr. Sub. Notes due
10/01/02.......................... 100,000 104,000
Rogers Communications, Inc., 8.75%
Sr. Notes due 07/15/07 (CAD)...... 100,000 68,748
TeleWest Communications PLC,
0%/11% Sr. Discount Debentures due
10/01/07 (d)...................... 65,000 57,850
0%/9.875% Sr. Discount Notes due
04/15/09 (a)(d) (GBP)............. 100,000 99,304
Time Warner Telecom LLC, 9.75%
Unsec. Sr. Notes due 07/15/08..... 50,000 51,250
TV Azteca SA de CV, Series A,
10.125% Sr. Notes due 02/15/04.... 100,000 81,500
United International Holdings,
Inc., 0%/10.75% Sr. Discount Notes
due 02/15/08 (d).................. 75,000 49,313
Young Broadcasting, Inc., 8.75%
Sr. Sub. Debentures due
06/15/07.......................... 100,000 97,000
Series B, 9% Sr. Sub. Notes due
01/15/06.......................... 50,000 48,845
Building & Construction - .42%
Kaufman & Broad Home Corp., 7.75%
Sr. Notes due 10/15/04............ 100,000 98,250
Nortek, Inc., 9.125% Sr. Notes due
09/01/07.......................... 200,000 198,000
Building Materials - .07%
Falcon Building Products, Inc.,
9.50% Sr. Sub. Notes due
06/15/07.......................... 50,000 47,875
Capital Goods - .27%
Aki Holdings, Inc.,
0%/13.50% Sr. Discount Debentures
due 07/01/09 (d).................. 50,000 19,000
10.50% Sr. Notes due 07/01/08..... 50,000 48,500
Eagle-Picher Industries, Inc.,
9.375% Sr. Sub. Notes due
03/01/08.......................... 100,000 95,000
Paragon Corp. Holdings, Inc.,
9.625% Sr. Notes due 04/01/08..... 45,000 26,100
Chemicals & Allied Products - 1.19%
ClimaChem, Inc., 10.75% Gtd. Sr.
Sub. Unsec. Bonds due 12/01/07.... 50,000 47,813
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE> 24
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Huntsman ICI Chemicals LLC,
10.125% Sr. Sub. Notes due
07/01/09 (a)...................... $ 100,000 $ 101,000
Hydrochem Industrial Services,
Inc., 10.375% Sr. Sub. Notes due
08/01/07.......................... 50,000 45,000
Lyondell Chemical Co.,
9.875% Sr. Sec. Notes due 05/01/07
(a)............................... 200,000 204,500
10.875% Sr. Sub. Notes due
05/01/09 (a)...................... 100,000 104,000
NL Industries, Inc., 11.75% Sr.
Sec. Notes due 10/15/03........... 40,000 42,000
PCI Chemicals Canada, Inc., 9.25%
Sr. Sec. Notes due 10/15/07....... 50,000 40,500
Pioneer Americas Acquisition
Corp., 9.25% Sr. Sec. Notes due
06/15/07.......................... 25,000 20,500
Polymer Group, Inc., 9% Sr. Sub.
Notes due 07/01/07................ 50,000 48,500
Sovereign Specialty Chemicals,
Inc., 9.50% Sr. Sub. Notes due
08/01/07.......................... 75,000 75,188
Sterling Chemicals, Inc., 11.75%
Sr. Unsec. Sub. Notes due
08/15/06.......................... 150,000 114,000
Commercial Services - .07%
Kindercare Learning Centers, Inc.,
9.50% Sr. Sub. Notes due
02/15/09.......................... 50,000 47,500
Computers - .16%
Unisys Corp., 11.75% Sr. Notes due
10/15/04.......................... 100,000 111,000
Conglomerates - .14%
Jordan Industries, Series C,
10.375% Sr. Notes due 08/01/07.... 100,000 101,250
Mechala Group Jamaica, Ltd.,
12.75% Bonds due 12/30/99......... 4,000 1,405
Consumer Products - .70%
Bell Sports, Inc., 11% Sr. Sub
Notes due 08/15/08................ 110,000 109,450
Fruit of the Loom, Inc., 8.875%
Gtd. Sr. Unsec. Notes due 04/15/06
(a)............................... 100,000 86,000
Holmes Products Corp., 9.875% Gtd.
Sr. Sub. Unsec. Bonds due
11/15/07.......................... 25,000 24,188
Icon Health & Fitness, Inc.,
Series B, 13% Sr. Sub. Notes due
07/15/02.......................... 85,000 63,750
Iron Mountain, Inc.,
8.75% Sr. Sub. Notes due
09/30/09.......................... 50,000 48,500
10.125% Sr. Sub. Notes due
10/01/06.......................... 50,000 51,750
Revlon Consumer Products, Inc.,
9% Sr. Notes due 11/01/06......... 10,000 9,850
8.625% Sr. Sub. Notes due
02/01/08.......................... 50,000 46,750
Revlon Worldwide Corp., Zero
Coupon Sr. Sec. Discount Notes due
03/15/01.......................... 30,000 19,500
TAG Heuer International SA, 12%
Sr. Sub. Notes due 12/15/05 (f)... 33,000 37,050
Diversified Financial - .52%
AMRESCO, Inc., Series 97-A, 10%
Sr. Sub. Notes due 03/15/04....... 75,000 57,000
Series 98-A, 9.875% Sr. Sub. Notes
due 03/15/05...................... 100,000 75,000
Dresdner Funding Trust II, 5.79%
Sub. Notes due 06/30/2011 (a)
(EUR)............................. 200,000 199,265
Veritas Capital Trust, 10% Gtd.
Bonds due 01/01/28................ 50,000 40,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Diversified Media - .50%
Chancellor Media Corp.,
Series B, 8.13% Sr. Sub. Notes due
12/15/07.......................... $ 50,000 $ 48,250
10.50% Sr. Sub. Notes due
01/15/07.......................... 90,000 94,500
IPC Magazines Group PLC, 9.625%
Bonds due 03/15/08 (GBP).......... 50,000 63,050
Lamar Advertising Co., 9.625%
Unsec. Sr. Sub. Notes due
12/01/06.......................... 100,000 103,000
Sinclair Broadcast Group, Inc.,
8.75% Sr. Sub. Notes due
12/15/07.......................... 50,000 48,500
Electrical Utilities - .25%
Calpine Corp.,
8.75% Sr. Notes due 07/15/07...... 115,000 113,275
10.50% Sr. Notes due 05/15/06..... 50,000 53,250
Central Termica Guemes SA, 12%
Unsec. Bonds due 11/26/01
(a)(b)(f)......................... 50,000 7,438
Electronics - .19%
Fairchild Semiconductor Corp.,
10.375% Sr. Sub. Notes due
10/01/07 (a)...................... 50,000 49,125
Wavetek Corp., 10.125% Sr. Sub.
Notes due 06/15/07................ 100,000 88,500
Energy Services & Producers - .87%
Gothic Energy Corp., Series B,
0%/14.125% Sec. Sr. Discount Notes
due 05/01/06 (d).................. 125,000 43,750
Gothic Production Corp., 11.125%
Sr. Sec. Notes due 05/01/05 (a)... 50,000 44,000
Grant Geophysical, Inc., 9.75% Sr.
Notes due 02/15/08................ 90,000 47,700
Great Lakes Carbon Corp., 10.25%
Sr. Sub. Notes due 05/15/08....... 150,000 146,250
P&L Coal Holdings Corp., 9.625%
Sr. Sub. Notes due 05/15/08....... 100,000 99,250
Ram Energy, Inc., 11.50% Sr. Notes
due 02/15/08...................... 210,000 112,350
Universal Compression, Inc.,
0%/9.875% Sec. Discount Notes due
02/15/08 (d)...................... 200,000 125,000
Environmental Management - .07%
Allied Waste North America, Inc.,
7.875% Sr. Notes due 01/01/09..... 50,000 46,375
Financial - 1.07%
BankUnited Capital Trust, 10.25%
Bond due 12/31/26................. 100,000 95,000
CB Richard Ellis Service, 8.875%
Unsec. Sr. Sub. Notes due 06/01/06
(f)............................... 50,000 48,250
Charter Communications Holdings
LLC,
8.25% Sr. Notes due 04/01/07
(a)............................... 50,000 47,875
0%/9.92% Sr. Discount Notes due
04/01/11 (a)(d)................... 100,000 62,000
Federal Home Loan Bank, 5.625%
Unsec. Unsub. Notes due 06/10/03
(GBP)............................. 20,000 31,137
Local Financial Corp., 11% Sr.
Notes due 09/08/04 (a)............ 50,000 51,750
Netia Holdings BV,
0%/11% Sr. Gtd. Discount Notes due
11/01/07 (d)...................... 50,000 16,601
10.25% Sr. Gtd. Notes due
11/01/07.......................... 25,000 21,750
13.50% Gtd. Notes due 06/15/09 (a)
(EUR)............................. 200,000 214,922
</TABLE>
23
<PAGE> 25
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Polytama International Finance BV,
11.25% Sec. Notes due 06/15/07.... $ 44,290 $ 8,194
RBF Finance Co., 11% Gtd. Sr. Sec.
Notes due 03/15/06 (a)............ 125,000 128,750
SBS Agro Finance BV, 10.25% Bonds
due 07/21/00...................... 75,000 6,375
Southern Pacific Funding Corp.,
11.50% Sr. Notes due 11/01/04
(f)............................... 50,000 22,500
Food & Beverages - .90%
Aurora Foods, Inc., 8.75% Sr. Sub.
Notes due 07/01/08................ 100,000 98,000
Chiquita Brands International,
Inc., 10% Sr. Unsec. Notes due
06/15/09.......................... 250,000 249,375
Del Monte Foods Co., 0%12.50% Sr.
Discount Notes due 12/15/07 (d)... 35,000 25,725
Doane Products Co., 9.75% due
05/15/07.......................... 73,000 72,726
Purina Mills, Inc., 9% Sr. Sub.
Notes due 03/15/10................ 50,000 37,500
Shoppers Food Warehouse Corp.,
9.75% Sr. Sec. Notes due 06/15/04
(f)............................... 20,000 21,350
Smithfield Foods, Inc., 7.625% Sr.
Sub. Notes due 02/15/08........... 100,000 90,500
Sparkling Spring Water Group,
Ltd., 11.50% Sr. Sub. Notes due
11/15/07.......................... 50,000 40,000
Gas Utilities - .07%
AmeriGas Partners, L.P., 10.125%
Sr. Notes due 04/15/07............ 50,000 51,813
Health Care/Supplies &
Services - 1.16%
Fresenius Medical Cap Trust II,
7.875% Gtd. Sec. Trust Preferred
Bonds due 02/01/08................ 100,000 93,000
Fresenius Medical Cap Trust III,
7.375% Gtd. Sec. Trust Preferred
Bonds due 02/01/08 (DEM).......... 100,000 54,282
ICN Pharmaceutical, Inc., 8.75%
Sr. Notes due 11/15/08 (a)........ 100,000 98,250
Integrated Health Services, 9.50%
Sr. Sub. Notes due 09/15/07....... 95,000 69,350
Kinetic Concepts, Inc., Series B,
9.625% Sr. Unsec. Sub. Notes due
11/01/07.......................... 175,000 155,750
Oxford Health Plans, Inc., 11% Sr.
Notes due 05/15/05 (a)............ 100,000 103,000
Qwest Diagnostic, Inc., 9.875% Sr.
Sub. Notes due 07/01/09 (a)....... 250,000 250,000
Homebuilders/Real Estate - .42%
D. R. Horton, Inc., 8% Unsec. Gtd.
Sr. Notes due 02/01/09............ 50,000 47,000
Saul (B.F.) Real Estate Investment
Trust, 9.75% Sr. Sec. Notes due
04/01/08.......................... 165,000 153,450
Web (Del E.) Corp., 10.25% Unsec.
Sr. Sub. Debentures due
02/15/10.......................... 100,000 99,000
Hotel/Gaming - 2.07%
Apcoa, Inc., 9.25% Sr. Sub. Notes
due 03/15/08...................... 50,000 45,063
Aztar Corp., 8.875% Sr. Sub. Notes
due 05/15/07 (a).................. 200,000 191,500
Capstar Hotel Co., 8.75% Sr. Sub.
Notes due 08/15/07................ 25,000 23,375
Casino Magic of Louisiana Corp.,
Series B, 13% due 08/15/03........ 40,000 45,250
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Empress Entertainment, Inc.,
8.125% Sr. Sub. Notes due
07/01/06.......................... $ 150,000 $ 149,813
Florida Panthers Holdings, 9.875%
Sr. Sub. Notes due 04/15/09....... 150,000 140,250
Hard Rock Hotel, Inc., 9.25% Sr.
Sub. Notes due 04/01/05........... 90,000 84,825
HMH Properties, Inc., Series C,
8.45% due 12/01/08................ 75,000 71,250
Hollywood Casino Corp., 11.25%
Sec. Sr. Notes due 05/01/2007
(a)............................... 150,000 151,125
Horseshoe Gaming LLC, 9.375% Sr.
Sub. Notes due 06/15/07........... 75,000 76,219
Intrawest Corp., 9.75% Sr. Notes
due 08/15/08...................... 75,000 75,563
Isle of Capri Casinos, 8.75% Sr.
Sub. Notes due 04/15/09 (a)....... 150,000 140,625
Jupiters, Ltd., 8.25% Sr. Notes
due 03/01/06 (a).................. 75,000 73,500
Meristar Hospitality Corp., 8.75%
Sr. Sub. Notes due 08/15/07 (a)... 50,000 47,500
Mohegan Tribal Gaming Authority,
8.125% Sr. Notes due 01/01/06..... 100,000 98,000
8.75% Sr. Sub. Notes due
01/01/09.......................... 50,000 49,500
Industrial - 1.79%
Federal-Mogul Corp., 7.875% Notes
due 07/01/10...................... 125,000 116,932
Fleming Companies, Inc., 10.625%
Sr. Sub. Notes due 07/31/07....... 170,000 157,675
Focal Communications, Inc.,
0%/12.125% Sr. Discount Notes due
02/15/08 (d)...................... 130,000 72,800
Globe Manufacturing Corp., 10% Sr.
Sub. Notes due 08/01/08........... 100,000 75,000
International Wire Group, Inc.,
Series B, 11.75% Sr. Sub. Notes
due 06/01/05...................... 65,000 67,438
Key Plastics, Inc., 10.25% Sr.
Sub. Notes due 03/15/07........... 50,000 49,000
Leviathan Gas Pipeline/Leviathan
Finance Corp., 10.375% Sr. Sub.
Notes due 06/01/2009 (a).......... 100,000 102,000
Packaged Ice, Inc., 9.75% Unsec.
Sr. Notes due 02/01/05............ 25,000 24,500
Pantry, Inc. (The), 10.25% Sr.
Sub. Notes due 10/15/07........... 50,000 50,375
Pentacon, Inc., 12.25% Sr. Sub.
Notes due 04/01/09................ 100,000 98,500
Phillips Van-Heusen Corp., 9.50%
Sr. Sub. Notes due 05/01/08....... 100,000 100,000
Roller Bearing Co. of America,
Inc., 9.625% Sr. Sub. Notes due
06/15/07.......................... 125,000 118,125
Safety-Kleen Corp., 9.25% Sr.
Notes due 05/15/09 (a)............ 150,000 150,750
Shaw Communications, Inc., 8.54%
Debentures due 09/30/27 (CAD)..... 80,000 51,480
Styling Technology Corp., 10.875%
Sr. Sub. Notes due 07/01/08....... 35,000 33,950
Industrial Services - .47%
Comforce Operating, Inc., 12% Sr.
Notes due 12/01/07 (f)............ 50,000 47,063
Fisher Scientific International,
Inc., 9% Sr. Sub. Notes due
02/01/08.......................... 100,000 95,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE> 26
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Great Lakes Dredge & Dock Corp.,
11.25% Sr. Sub. Notes due
08/15/08.......................... $ 110,000 $ 113,300
United Rentals, Inc., 9% Notes due
04/01/09 (a)...................... 75,000 73,500
Information Technology - 3.37%
Amazon Communications, Inc.,
0%/10% Sr. Discount Notes due
05/01/08 (d)...................... 105,000 68,513
Cellnet Data Systems, Inc., 0%/14%
Unsec. Sr. Discount Notes due
10/01/07 (d)...................... 45,000 18,900
Covad Communications Group, Inc.,
0%/13.50% Sr. Discount Notes due
03/15/08 (d)...................... 150,000 82,500
Crown Castle International Corp.,
0%/10.375% Sr. Discount Notes due
05/15/11 (d)...................... 100,000 58,000
0%/10.625% Sr. Discount Notes due
11/15/07 (d)...................... 75,000 52,125
CTI Holdings SA, 0%/11.50% Sr.
Notes due 04/15/08 (d)............ 50,000 24,250
Details, Inc., 10% Sr. Sub. Notes
due 11/15/05...................... 25,000 23,188
Exodus Communications, Inc.,
11.25% Sr. Notes due 07/01/08..... 80,000 84,000
11.25% Sr. Notes due 07/01/08
(a)............................... 150,000 157,500
Global Crossing Holdings, Ltd.,
9.625% Sr. Notes due 05/15/08..... 100,000 102,000
Globix Corp., 13% Unsec. Sr. Notes
due 05/01/05 (f).................. 50,000 47,750
GST Telecommunications, Inc./GST
Network Funding, Inc., 0%/10.25%
Sr. Discount Notes due 05/01/08
(a)(d)............................ 85,000 48,025
ICG Services, Inc., 0%/10% Sr.
Discount Notes due 02/15/08 (d)... 35,000 19,950
KMC Telecom Holdings, Inc.,
0%/12.50% Unsec. Sr. Discount
Notes due 02/15/08 (d)(f)......... 100,000 55,000
13.50% Sr. Notes due 05/15/09
(a)............................... 200,000 200,250
Nextel Communications, Inc., Sr.
Discount Notes,
0%/9.75% due 10/31/07 (d)......... 60,000 41,850
0%/9.95% due 02/15/08 (d)......... 75,000 51,375
0%/10.65% due 09/15/07 (d)........ 250,000 181,875
Nextlink Communications, Inc.,
9% due 03/15/08................... 100,000 94,000
0%/9.45% Sr. Discount Notes due
04/15/08 (d)...................... 100,000 59,500
9.625% Sr. Notes due 10/01/07..... 125,000 121,563
10.75% Sr. Notes due 11/15/08..... 50,000 51,125
10.75% Unsec. Sr. Notes due
06/01/09.......................... 250,000 256,250
Pinnacle Holdings, Inc., 0%/10%
Sr. Discount Notes due 03/15/08
(d)............................... 100,000 57,250
Psinet, Inc., 10% Senior Notes due
02/15/05.......................... 150,000 150,750
Satelites Mexicanos SA, 10.125%
Sr. Notes due 11/01/04............ 50,000 39,750
SBA Communications Corp., 0%/12%
Sr. Discount Notes due 03/01/08
(d)............................... 200,000 115,000
Wam!Net, Inc., 0%/13.25% Sr.
Discount Notes due 03/01/05
(d)(f)............................ 200,000 121,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Insurance - .09%
Veritas Holdings, GMBH, 9.625% Sr.
Notes due 12/15/03................ $ 65,000 $ 64,025
Internet Technology - .14%
Verio, Inc., 10.375% Unsec. Sr.
Notes due 04/01/05................ 100,000 101,750
Leisure & Entertainment - .93%
Premier Cruise, Ltd., 11% Sr.
Notes due 03/15/08 (a)(b)......... 50,000 12,500
Premier Parks, Inc.
0%/10% Sr. Discount Notes due
04/01/08 (d)...................... 50,000 33,188
9.25% Sr. Notes due 04/01/06...... 50,000 49,250
9.75% Sr. Notes due 06/15/07...... 200,000 202,480
Regal Cinemas, Inc., 8.875% Unsec.
Sr. Sub. Notes due 12/15/10....... 200,000 184,000
SFX Entertainment, Inc., 9.125%
Sr. Sub. Notes due 02/01/08....... 125,000 122,500
Six Flags Entertainment Corp.,
8.875% Sr. Notes due 04/01/06..... 50,000 50,000
Manufacturing - .72%
Applied Power, Inc., 8.75% Sr.
Sub. Notes due 04/01/09........... 75,000 72,750
Axia, Inc., 10.75% Sr. Sub. Notes
due 07/15/08...................... 50,000 49,313
Ball Corp.,
7.75% Sr. Notes due 08/01/06...... 50,000 48,813
8.25% Sr. Sub. Notes due
08/01/08.......................... 50,000 49,250
Grove Worldwide LLC, 9.25% Sr.
Sub. Notes due 05/01/08........... 50,000 36,500
Insilco Holding Co., Series B, 12%
Gtd. Sr. Sub. Notes due
08/15/07.......................... 20,000 19,800
Moll Industries, 10.50% Sr. Sub.
Notes due 07/01/08................ 100,000 88,000
SC International Services, Inc.,
9.25% Sr. Sub. Notes due
09/01/07.......................... 50,000 50,750
Terex Corp., 8.875% Unsec. Sub.
Sr. Notes due 04/01/08 (a)........ 100,000 95,500
Metals/Mining - .61%
Centaur Mining & Exploration,
Ltd., 11% Gtd. Sr. Notes due
12/01/07.......................... 25,000 22,750
International Utility Structures,
Inc., 10.75% Sr. Sub. Notes due
02/01/08.......................... 25,000 25,063
Kaiser Aluminum & Chemical Corp.,
12.75% Sr. Sub. Notes due
02/01/03.......................... 125,000 128,125
Metallurg Holdings, Inc.,
0%/12.75% Sr. Discount Notes due
07/15/08 (d)...................... 100,000 38,000
Metallurg, Inc., 11% Sr. Notes due
12/01/07.......................... 225,000 216,000
Oil & Gas - .68%
Dailey International, Inc., 9.50%
Sr. Unsec. Notes due 02/15/08..... 100,000 63,000
Denbury Management, Inc., 9% Sr.
Sub. Notes due 03/01/08........... 150,000 133,875
Forcenergy, Inc., 9.50% Unsec. Sr.
Sub. Notes due 11/01/06 (b)....... 50,000 31,750
Ocean Rig Norway AS, 10.25% Sr.
Sec. Gtd. Notes due 06/01/08...... 100,000 72,000
Parker Drilling Co., Series B,
9.75% Sr. Notes due 11/15/06...... 100,000 92,500
Stone Energy Corp., 8.75% Sr. Sub.
Notes due 09/15/07................ 85,000 84,575
</TABLE>
25
<PAGE> 27
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Paper & Forest Products - 1.81%
Fletcher Challenge, Ltd.,
8.05% Bonds due 06/15/03 (NZD).... $ 30,000 $ 16,198
10% Cv. Unsec. Sub. Notes due
04/30/05 (NZD).................... 5,000 2,728
14.50% Cv. Sub. Notes due 09/30/00
(NZD)............................. 85,000 48,640
Gaylord Container Corp., Series B,
9.75% Unsec. Sr. Notes due
06/15/07.......................... 150,000 142,500
Repap New Brunswick, Inc., 9%
First Priority Sec. Sr. Notes due
06/01/04.......................... 100,000 93,250
Riverwood International Corp.,
10.625% Sr. Notes due 08/01/07.... 100,000 102,500
10.875% Gtd. Unsec. Sr. Sub. Notes
due 04/01/08...................... 100,000 97,250
SD Warren Co., Series B, 12% Sr.
Sub. Notes due 12/15/04........... 150,000 160,500
14% Debentures due 12/15/06 (h)... 254,925 291,252
Tembec Industries, Inc., 8.625%
Gtd. Unsec. Sr. Notes due
06/30/09.......................... 200,000 199,000
U.S. Timberland Co. LP, 9.625% Sr.
Notes due 11/15/07................ 25,000 25,125
URS Corp., 12.50% Sr. Sub. Notes
due 05/01/09 (a).................. 100,000 101,500
Printing, Publishing & Allied
Products - .14%
Premier Graphics, Inc., 11.50% Sr.
Notes due 12/01/05 (f)............ 100,000 96,000
Restaurants - .27%
Ameriking, Inc., 10.75% Sr. Unsec.
Notes due 12/01/06................ 150,000 151,500
Family Restaurants, Inc., 9.75%
Sr. Notes due 02/01/02............ 75,000 37,969
Retail - .08%
Boyds Collection, Ltd., 9% Sr.
Sub. Notes due 05/15/08 (a)....... 60,000 59,250
Security Services - .13%
Protection One Alarm Monitoring,
Inc., 6.75% Cv. Gtd. Sr. Sub.
Notes due 09/15/03................ 100,000 90,625
Specialty Retailing - .23%
Eye Care Centers of America, Inc.,
9.125% Sr. Sub. Notes due
05/01/08.......................... 75,000 65,250
Finlay Fine Jewelry Corp., 8.375%
Sr. Notes due 05/01/08............ 50,000 48,250
Home Interior & Gifts, Inc.,
10.125% Sr. Sub. Notes due
06/01/08.......................... 50,000 49,500
Steel - .50%
AK Steel Corp.,
7.875% Sr. Notes due 02/15/09
(a)............................... 50,000 48,000
9.125% Sr. Notes due 12/15/06..... 100,000 103,000
Bar Technologies, Inc., 13.50% Sr.
Sec. Notes due 04/01/01........... 25,000 25,781
California Steel Industries, 8.50%
Sr. Notes due 04/01/09 (a)........ 75,000 73,031
National Steel Corp., 9.875% First
Mortgage due 03/01/09............. 100,000 101,750
Supermarkets - .40%
Pathmark Stores,
0%/10.75% Jr. Sub. Notes due
11/01/03 (d)...................... 130,000 128,700
12.625% Sub. Notes due 06/15/02... 50,000 50,750
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Randall's Food Markets, Inc.,
9.375% Sr. Sub. Notes due
07/01/07.......................... $ 100,000 $ 105,000
Telecommunications - 5.78%
Arch Communications, Inc., 12.75%
Sr. Notes due 07/01/17............ 50,000 43,000
Clearnet Communications, Inc.,
0%/14.75% Sr. Unsec. Discount
Notes due 12/15/05 (d)............ 15,000 13,725
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)
(d)(i)............................ 100,000 83,000
0%/12% Unsec. Sr. Discount Notes
due 12/15/06 (d).................. 50,000 41,500
7.625% Bonds due 07/31/08 (DEM)... 200,000 105,456
8.875% Sr. Notes due 11/30/07
(GBP)............................. 25,000 13,762
10.125% Sr. Notes due 11/30/07
(GBP)............................. 35,000 59,996
Comunicacion Celular SA,
0%/13.125% Sr. Deferred Coupon
Bonds due 11/15/03 (d)............ 100,000 60,125
Convergent Communications, Inc.,
Units (each unit consists of
$1,000 principal amount of 13% Sr.
Notes and four warrants to
purchase 10.8 shares of common
stock) (i)........................ 50,000 43,563
Diamond Cable Communications PLC,
0%/11.75% Sr. Discount Notes due
12/15/05 (d)...................... 200,000 180,000
E. Spire Communications, Inc.,
13.75% Unsec. Sr. Notes due
07/15/07.......................... 25,000 19,500
Firstworld Communications, Inc.,
Units (each unit consists of
$1,000 principal amount of 13% Sr.
Discount Notes due 04/15/08 and
one warrant to purchase 7.9002
shares of series B, common stock)
(i)............................... 75,000 39,000
GST USA, Inc., 0%/13.875% Gtd. Sr.
Sec. Discount Notes due 12/15/05
(d)............................... 65,000 53,300
Hyperion Telecommunications, Inc.,
12% Sr. Sub. Notes due 11/01/07
(a)............................... 75,000 76,688
ICO Global Communications
(Holdings), Ltd., Units, (each
unit consists of $1,000 principal
amount of 15% Sr. Notes due
08/01/05 and one warrant to
purchase 19.85 shares of common
stock) (i)........................ 50,000 20,500
Intermedia Communications, Inc.,
8.50% Sr. Notes due 01/15/08...... 75,000 70,313
8.60% Sr. Notes due 06/01/08...... 90,000 82,800
8.875% Sr. Notes due 11/01/07..... 75,000 68,625
Level 3 Communications, Inc.,
0%/10.50% Sr. Discount Notes due
12/01/08 (d)...................... 75,000 46,125
9.125% Unsec. Sr. Notes due
05/01/08.......................... 100,000 98,250
Loral Space & Communications,
Ltd., 9.50% Sr. Notes due
01/15/06.......................... 50,000 43,375
McLeodUSA, Inc.,
8.125% Sr. Notes due 02/15/09
(a)............................... 135,000 124,875
8.375% Sr. Notes due 03/15/08..... 50,000 46,750
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE> 28
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
9.25% Sr. Notes due 07/15/07...... $ 40,000 $ 39,700
Metrocall, Inc., 10.375% Sr. Sub.
Notes due 10/01/07................ 50,000 37,250
Metromedia Fiber Network, Inc.,
10% Sr. Notes due 11/15/08........ 150,000 150,495
Microcell Telecommunications,
Inc., 0%/10.125% Sr. Discount
Notes due 10/15/07 (d) (CAD)...... 100,000 41,553
0%/12% Sr. Discount Notes due
06/01/09 (a)(d)................... 250,000 142,500
Millicom International Cellular
SA, 0%/13.50% Sr. Discount Notes
due 06/01/06 (d).................. 160,000 117,600
NTL, Inc.,
7% Cv. Sub. Notes due 12/15/08
(a)............................... 100,000 163,250
0%/9.75% Sr. Notes due 04/01/08
(d)............................... 100,000 68,500
0%/9.75% Sr. Notes due 04/15/09
(d)............................... 200,000 189,150
0%/10.75% Sr. Unsec. Unsub. Notes
due 04/01/08 (GBP) (a)(d)......... 50,000 51,821
10% Sr. Notes due 02/15/07........ 100,000 104,000
Omnipoint Corp., Series A, 11.625%
Sr. Notes due 08/15/06............ 135,000 137,700
Orange PLC,
8% Sr. Notes due 08/01/08......... 100,000 95,500
8.75% Unsec. Sr. Bonds due
06/01/06 (a)...................... 250,000 250,313
ORBCOMM Global LP/ORBCOMM Capital
Corp., Series B, 14% Sr. Notes due
08/15/04.......................... 150,000 145,500
Orion Networks Systems, Inc.,
0%/12.50% Sr. Discount Notes due
01/15/07 (d)...................... 200,000 111,000
RSL Communications PLC, 0%/10%
Bonds due 03/15/08 (DEM) (d)...... 50,000 15,547
Rural Cellular Corp., 9.625% due
05/15/08.......................... 100,000 100,500
PLD Telekom, Inc., 0%/14% Sec. Sr.
Discount Notes due 06/01/04
(d)(f)............................ 50,000 34,000
Price Communications Wireless,
Inc.,
9.125% Sec. Notes due 12/15/06.... 100,000 101,000
11.75% Unsec. Sr. Sub. Notes due
07/15/07.......................... 50,000 56,000
PTC International Finance BV,
0%/10.75% Unsec. Sub. Notes due
07/01/07 (d)(f)................... 34,000 24,395
Qwest Communications
International, Inc., 0%/9.47% Sr.
Sub. Notes due 10/15/07 (d)....... 140,000 109,200
Spectrasite Holdings, Inc., 0%/12%
Sr. Discount Notes due 07/15/08
(a)(d)............................ 200,000 126,000
Telecomunicacoes Brasileiras SA,
10.54% due 12/09/99 (c)(f)........ 30,000 29,925
USA Mobile Communications, Inc.
II, 14% Sr. Notes due 11/01/04.... 65,000 60,125
Viatel, Inc., 11.25% Sec. Sr.
Notes due 04/15/08................ 150,000 153,000
Transportation - .69%
Budget Group, Inc., 9.125% Sr.
Notes due 04/01/06 (a)............ 100,000 93,000
Coach USA, Inc., 9.375% Sr. Sub.
Notes due 07/01/07................ 20,000 20,800
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
Millenium Seacarriers, Inc., 12%
Gtd. Sr. Sec. First Priority Ship
Mortgage Notes due 07/15/05 (f)... $ 100,000 $ 56,000
Navigator Gas Transportation PLC,
10.50% First Priority Ship
Mortgage Notes due 06/30/07 (a)... 75,000 36,750
Units (each unit consists of
$1,000 principal amount of 12% 2nd
priority ship mortgage notes and
7.66 warrants) (a)(i)............. 50,000 16,000
TFM SA de CV, 10.25% Sr. Gtd.
Bonds due 06/15/07................ 75,000 65,063
Transtar Holdings LP/Transtar
Capital Corp., Series B,
0%/13.375%
Sr. Discount Notes due 12/15/03
(d)............................... 200,000 198,000
----------
Total Corporate Bonds and Notes (cost:
$26,874,325) 25,087,884
----------
shares
----------
<S> <C> <C>
COMMON STOCKS - .12%
Horizon Group Properties, Inc...... 29 94
Optel, Inc......................... 85 1
Paxson Communications Corp......... 29,261 0
Price Communications Corp.......... 4,307 64,613
Viatel, Inc........................ 401 22,406
----------
Total Common Stocks (cost: $55,454) 87,114
----------
PREFERRED STOCKS - 1.71%
Capstar Broadcasting, Inc., 12%
Exchangeable (f)(h)............... 298 34,568
Concentrix Network Corp., 13.50%... 54 51,300
Dobson Communications, 13%
(a)(h)............................ 200 196,000
E. Spire Communications, 12.75%
(h)............................... 54 21,600
Eagle-Picher Holdings, Series B,
0%/11.75% Cum. (d)................ 10 52,000
ICG Holdings, Inc., 14.25% (h)..... 33 32,837
Nebco Evans Holdings Co., 11.25%
(h)............................... 1,144 45,188
Nextel Communications, Inc., Series
E, 11.125% (h).................... 55 55,000
NEXTLINK Communications, Inc., 14%
Cum. (h).......................... 5,427 274,064
Paxson Communications Corp.,
13.25%............................ 50,000 45,000
PRIMEDIA, Inc.,
Series E, 9.20%................... 100 9,788
Series G, 8.625% Exchangeable..... 3,000 285,375
Rural Cellular Corp., 11.375%...... 54 54,540
S.F. Holdings Group, Inc., Units
(each Unit consist of one 13.75%
Preferred Stock and 37 Class C
Shares of Common Stock) (h)(i).... 10 22,000
Spanish Broadcasting Systems, Inc.,
14.25% Cum. Exchangeable (a)(h)... 29 31,464
----------
Total Preferred Stocks (cost: $1,435,339) 1,210,724
----------
</TABLE>
27
<PAGE> 29
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------------
value
units (note 1)
----------- ------------
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES - .12% (b)
Argentina Wts., Exp. 12/99......... 280 $ 210
Argentina Wts., Exp. 12/99......... 325 0
Bell Technology Group Wts., Exp.
05/05 (f)......................... 50 3,525
Comunicacion Celular SA Wts., Exp.
11/03 (f)......................... 100 7,000
Convergent Communications, Inc.
Wts., Exp. 04/08 (f).............. 200 1,500
Firstworld Communications, Inc.
Wts., Exp. 04/08 (a)(f)........... 75 3,750
Gothic Energy Corp. Wts., Exp.
09/04 (f)......................... 1,400 1,400
Gothic Energy Corp. Wts., Exp.
09/04 (f)......................... 1,303 130
Gothic Energy Corp. Wts., Exp.
05/05 (f)......................... 991 99
Insilco, Inc. Wts., Exp. 08/07..... 20 0
KMC Telecom Holdings, Inc. Wts.,
Exp 04/08 (a)(f).................. 100 250
Long Distance International, Inc.
Wts., Exp 04/08 (f)............... 50 125
Loral Orion Network Systems, Inc.
Wts., Exp 01/07................... 100 1,200
Millenium Seacarriers, Inc. Wts.,
Exp. 07/05 (a)(f)................. 100 125
Occidente Y Caribe Celular SA Wts.,
Exp. 03/04 (f).................... 400 6,800
Petersburg Long Distance, Inc.
Wts., Exp. 01/01.................. 50 0
Price Communication Corp. Wt., Exp
08/07 (f)......................... 516 47,214
Republic of Venezuela Wts., Exp.
04/20............................. 1,250 0
S. F. Holdings Group, Inc. Wts.,
Units............................. 370 4
United Mexican States Bonds Wts.,
Exp. 06/03........................ 250,000 0
Wam!Net, Inc. Wts., Exp. 03/05
(a)............................... 600 13,650
----------
Total Rights, Warrants and Certificates
(cost: $13,256) 86,982
----------
face amount
or units
(j)
----------
STRUCTURED INSTRUMENTS - 4.23%
Citibank, Mexican Linked Notes, 29%
due 03/17/00 MXP (f).............. 1,859,625 197,517
Citibank/Salomon Brothers, Inc.,
Turkish Lira Linked Notes, 0% due
08/11/99.......................... 200,000 185,672
0% due 08/19/99................... 215,000 207,722
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ ------------
<S> <C> <C>
Credit Suisse First Boston Corp.,
Russian OFZ Linked Notes, 15% due
02/23/00 (b)(f) (RUR)............. 1,962,000 $ 20,862
Deutsche Bank Capital Corp.,
Indonesian Rupiah Linked Notes,
13.667% due 06/30/00.............. 120,000 120,000
Indonesian Rupiah/Japanese Yen
Linked Notes, 0% due 08/17/01..... 85,000 62,756
Philippine Peso/Japanese Yen
Linked Notes, 10.55% due
05/12/00.......................... 30,000 30,207
Deutsche Morgan Grenfell, Russian
Federal Loan Floating Rate Linked
Notes,
14% due 09/27/00 (RUR) (b)(f)..... 880,000 4,354
15% due 02/23/00 (b)(f)........... 80,000 800
18.598% due 10/25/00 (b)(f)....... 80,000 800
Goldman, Sachs & Co., Japanese
Government Bond Linked Notes,
Series 203, 2.11% due 09/10/99.... 400,000 421,000
JP Morgan Securities, Inc.,
Leverage Notes on The Emerging
Markets Bond Index, 9.50% due
07/16/99.......................... 650,000 559,118
9.50% due 08/10/99................ 340,000 308,416
9.50% due 11/03/99................ 380,343 374,195
Salomon Brothers, Inc.,
Brazil Linked Notes, 6% due
04/02/03 (f)...................... 150,000 98,250
Indonesian Rupiah Linked Notes,
29.55% due 04/12/00............... 10,000 13,649
32.50% due 04/06/00............... 30,000 41,425
Standard Chartered Bank,
Indonesian Rupiah Linked Notes,
33.50% due 04/05/00............... 120,000 173,688
32% due 04/07/00.................. 65,000 93,230
Philippine Peso Linked Notes,
15.09% due 07/22/99............... 40,000 40,920
Philippine Peso/Japanese Yen
Linked Notes, 15.09% due
05/10/00.......................... 35,000 35,151
----------
Total Structured Instruments (cost: $3,505,938) 2,989,732
----------
</TABLE>
<TABLE>
<CAPTION>
contracts/
face
strike subject
date price to call
----- --------------- ----------
<S> <C> <C> <C> <C>
CALL OPTIONS PURCHASED - .01%
Euro Call Option
(f)................. 08/99 1.067 (EUR) 320,000 2,553
Euro Call Option.... 08/99 1.0737 (EUR) 360,000 2,297
---------
Total Call Options Purchased (cost: $15,216) 4,850
---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE> 30
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------------
contracts/
face
strike subject value
date price to call (note 1)
----- --------------- ---------- -----------
<S> <C> <C> <C> <C>
PUT OPTIONS PURCHASED - .01%
Brazil (Federal
Republic of)
Capitalization
Bonds, 8%, 07/12/99
Put Option.......... 07/99 65.375% 2,808 3,831
Emerging Market Bond
Index Put Option
(f)................. 07/99 148.99% 195 1,332
Hong Kong Dollar Put
Option.............. 01/00 7.894 (HKD) 1,263,040 1,538
---------
Total Put Options Purchased (cost: $21,742) 6,701
---------
TOTAL INVESTMENTS (COST: $76,884,624) - 103.17% 72,943,700
OTHER ASSETS AND LIABILITIES, NET - (3.17)% (2,243,544)
---------
NET ASSETS - 100.00% $70,700,156
---------
---------
</TABLE>
<TABLE>
<CAPTION>
Atlas U.S. Government and Mortgage Securities Fund
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES - 86.97%
Federal Home Loan Mortgage Corp.
7.00% due 2023 - 2029............. $5,735,467 $ 5,678,600
7.50% due 2023 - 2024............. 11,884,959 12,028,236
8.00% due 2024 - 2026............. 5,470,030 5,622,502
8.50% due 2017 - 2026............. 1,370,565 1,433,549
9.00% due 2017 - 2024............. 2,910,790 3,080,623
9.50% due 2016 - 2021............. 730,917 780,623
10.00% due 2015 - 2020............ 60,512 65,188
10.50% due 2018 - 2020............ 63,355 68,182
Federal National Mortgage Assn.
6.50% due 2023 - 2029............. 57,831,784 55,811,630
7.00% due 2023 - 2029............. 49,093,374 48,558,593
7.50% due 2017 - 2028............. 22,134,549 22,371,801
8.00% due 2024 - 2028............. 27,083,596 27,826,615
8.50% due 2014 - 2027............. 4,331,278 4,529,653
9.00% due 2021 - 2025............. 3,294,032 3,478,249
9.50% due 2020.................... 30,800 32,824
Government National Mortgage Assn.
7.50% due 2022 - 2024............. 4,709,348 4,766,415
8.00% due 2023 - 2025............. 1,614,409 1,662,498
8.50% due 2016 - 2020............. 30,865 32,487
----------
Total U.S. Government Agencies (cost:
$199,242,179) 197,828,268
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas U.S. Government and
Mortgage Securities Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS - 12.00%
6.14% FHLMC Floating Collateralized
Mortgage Obligation due 1999...... $ 58,850 $ 58,850
6.50% GNMA Floating Collateralized
Mortgage Obligation due 2020...... 6,000,000 5,821,860
6.50% GNMA Floating Collateralized
Mortgage Obligation due 2025...... 3,000,000 2,900,610
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2026...... 3,000,000 2,874,360
6.50% FNMA Floating Collateralized
Mortgage Obligation due 2026...... 1,489,000 1,431,763
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,917,500
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,893,740
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,896,240
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 4,000,000 3,772,480
6.50% FNMA Floating Collateralized
Mortgage Obligation due 2028...... 3,000,000 2,805,930
6.50% GNMA Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,926,860
----------
Total Collateralized Mortgage Obligations (cost:
$28,701,038) 27,300,193
----------
SHORT-TERM INVESTMENTS - 1.58%
Repurchase Agreement dated June 30,
1999 with Lehman Bros., Inc.,
effective yield of 4.90%, due July
1, 1999 with respect to $3,562,259
FHLMC, 7.12%, January 1, 2025 with
a value of $3,666,882............. 3,595,489 3,595,489
----------
Total Short-Term Investments (cost: $3,595,489) 3,595,489
----------
TOTAL SECURITIES (COST: $231,538,706) - 100.55% 228,723,950
OTHER ASSETS AND LIABILITIES, NET - (.55)% (1,259,599)
----------
NET ASSETS - 100.00% $227,464,351
----------
----------
</TABLE>
29
<PAGE> 31
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund
- -----------------------------------------------------------------------
value
face amount (note 1)
---------------- ------------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL
PAPER - 10.47%
Los Angeles County, Capital Asset
Leasing Corp., Lease Revenue, 3%
due 08/05/99.................... $ 1,500,000 $ 1,500,000
Los Angeles, Department of Water
and Power, Electric Plant
Revenue, 3.10% due 08/13/99..... 1,000,000 1,000,000
Orange County, Water District,
3.10% due 08/17/99.............. 1,000,000 1,000,000
Sacramento, Municipal Utility
District, Series I, 3.05% due
09/10/99........................ 500,000 500,000
----------
Total Tax-Exempt Commercial Paper (cost:
$4,000,000) 4,000,000
----------
FIXED RATE BONDS AND NOTES - 18.52%
Cotati-Rohnert Park, Unified
School District, General
Obligation A, FGIC Insured, 9%
due 08/01/06.................... 500,000 512,549
Moreno Valley, Unified School
District, Tax and Revenue
Anticipation Notes, 4.00% due
06/30/00........................ 1,000,000 1,005,780
North City West, School
Facilities Financing Authority
Special Tax, Community
Facilities District 1, Series A,
7.85% due 09/01/19.............. 1,000,000 1,028,112
Oxnard, School District, Tax and
Revenue Anticipation Notes, 4%
due 08/19/99.................... 1,500,000 1,500,933
Pomona, Unified School District,
Series F, FGIC Insured, 5.80%
due 08/01/99.................... 100,000 100,182
Salinas, Sanitation Sewer System
Revenue, FGIC Insured, 4.50% due
08/01/99........................ 285,000 285,223
State Health Facilities Financing
Authority Revenue Refunding,
Health Dimensions-A, 7.50% due
05/01/15........................ 2,500,000 2,640,630
----------
Total Fixed Rate Bonds and Notes (cost: $7,073,409) 7,073,409
----------
VARIABLE RATE DEMAND NOTES* - 67.09%
Alameda County, Industrial
Development Agency, Tool Family
Partnership, AMT, Series A,
3.70% due 07/01/27.............. 1,000,000 1,000,000
Alameda-Contra Costa, School
Financing Authority, 3.70% due
07/01/16........................ 800,000 800,000
Contra Costa County, State
Housing Authority, Multi-Family
Revenue, Lakeshore Apartments,
Series C, 3.15% due 11/15/12.... 295,000 295,000
Eastern Municipal Water District,
Water and Sewer Revenue, COP,
FGIC Insured, 3.35% due
07/01/20........................ 400,000 400,000
Fairfield, Industrial Development
Authority, Meyer Cookware
Industries, Inc. Project, Series
A, AMT, 3.30% due 05/01/27...... 400,000 400,000
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
- -----------------------------------------------------------------------
value
face amount (note 1)
---------------- ------------
<S> <C> <C>
Foothill/Eastern Corridor Agency
California Toll Road Revenue,
Series C, 3.30% due 01/02/35.... $ 800,000 $ 800,000
Glendale, Revenue Reliance
Development, Public Parking,
3.30% due 12/01/14.............. 500,000 500,000
Lassen Municipal Utility
District, Revenue Refunding,
Series A, AMT, FSA Insured,
3.80% due 05/01/08.............. 800,000 800,000
Los Angeles County, Multi-Family
Housing Revenue, Malibu Meadows
Project-B, 3.60% due 04/15/28... 1,500,000 1,500,000
Moorpark, Multi-Family Revenue,
LeClub Apartments Project,
Series A, 3.40% due 11/01/15.... 300,000 300,000
Oakland, Joint Powers Financing
Authority Lease Revenue, FSA
Insured, Series A-1, 3.40% due
08/01/21........................ 1,000,000 1,000,000
Orange County, Water District,
COP, Project B, 3.75% due
08/15/15........................ 100,000 100,000
Otay, Water District, COP,
Capital Projects, 3.15% due
09/01/26........................ 700,000 700,000
Pasadena, COP, Rose Bowl
Improvement Project, 3% due
12/01/11........................ 100,000 100,000
Redlands, COP, Water Treatment
Facilities Project, FGIC
Insured, 3.30% due 09/01/15..... 965,000 965,000
Riverside County, Special Tax,
Community Facilities District
#89-5, 3.50% due 09/01/28....... 1,000,000 1,000,000
San Jose, Multi-Family Mortgage
Revenue, Somerset Park, Series
A, AMT, 3.65% due 11/01/17...... 1,600,000 1,600,000
San Leandro, Multi-Family,
Carlton Plaza Project, Series A,
3.50% due 10/01/27.............. 1,000,000 1,000,000
State Educational Facilities
Authority Revenue, Foundation
for Educational Achievement,
Series A, 3.55% due 07/01/26.... 1,000,000 1,000,000
State Health Facilities Financing
Authority Revenue Refunding,
Catholic Healthcare West, Series
D, MBIA Insured, 3% due
07/01/18........................ 1,000,000 1,000,000
Sutter Health, Series A, 2.90%
due 03/01/20.................... 100,000 100,000
Sutter Health, Series B, 2.90%
due 03/01/20.................... 1,000,000 1,000,000
State Pollution Control Financing
Authority, Pollution Control
Revenue Refunding,
Chevron USA, Inc. Project, 3.10%
due 11/15/01.................... 1,000,000 1,000,611
Chevron USA, Inc. Project, 3.10%
due 05/15/02.................... 300,000 300,000
Shell Oil Company Project,
Series B, 2.85% due 10/01/11.... 1,400,000 1,400,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE> 32
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
- -----------------------------------------------------------------------
value
face amount (note 1)
---------------- ------------
<S> <C> <C>
Statewide Communities Development
Authority, COP,
Citrus Valley Heath, MBIA
Insured, 3.75% due 04/01/28..... $ 1,600,000 $ 1,600,000
NoCal-Retired Officers, 3.20%
due 06/01/26.................... 1,710,000 1,710,000
Multi-Family, Sunrise of Moraga,
Series A, AMT, 3.50% due
07/01/27........................ 500,000 500,000
Statewide Communities Development
Corp. Revenue, Industrial
Development,
Florestone, AMT, 3.35% due
05/01/09........................ 740,000 740,000
Setton Properties Project, AMT,
3.35% due 10/01/10.............. 800,000 800,000
Staub Project, Series A, AMT,
3.35% due 08/01/02.............. 520,000 520,000
Tri-Valley Industrial
Development, Series F, AMT,
3.25% due 12/01/10.............. 700,000 700,000
----------
Total Variable Rate Demand Notes (cost:
$25,630,611) 25,630,611
----------
TOTAL SECURITIES (COST: $36,704,020) - 96.08% 36,704,020
OTHER ASSETS AND LIABILITIES, NET - 3.92% 1,497,507
----------
NET ASSETS - 100.00% $ 38,201,527
----------
----------
Atlas National Municipal Money Fund
- -----------------------------------------------------------------------
value
face amount (note 1)
---------- ----------
TAX-EXEMPT COMMERCIAL
PAPER - 17.40%
City of Brownsville, Texas,
Utility Systems, Series A, 3.15%
due 09/10/99.................... $ 100,000 $ 100,000
Florida, Sunshine, Government
Financing Community Revenue,
Series 1986, 3.20% due
08/09/99........................ 100,000 100,000
Illinois, Health Facilities
Financing Authority Revenue,
Rush Presbyterian, St Luke's
Medical, Series 89, 3.15% due
09/01/99........................ 200,000 200,000
Louisana, St James Parish,
Pollution Control Revenue,
Texaco, Inc. Project, Series A,
3.25% due 09/01/12.............. 200,000 200,000
Michigan, Building Authority,
Series 2, 3.15% due 08/05/99.... 100,000 100,000
Utah State, General Obligation,
Highway Commerical Paper Notes,
Series B, 3.15% due 08/16/99.... 200,000 200,000
----------
Total Tax-Exempt Commercial Paper (cost: $900,000) 900,000
----------
FIXED RATE BONDS AND NOTES - 34.12%
Colorado Springs, Colorado,
Cottonwood General Improvement
District, AMBAC Insured, 3.10%
due 12/01/99.................... 100,000 100,000
Groton, Massachusetts, General
Obligation, MBIA Insured, 3.70%
due 11/01/99.................... 100,000 100,098
</TABLE>
<TABLE>
<CAPTION>
Atlas National Municipal Money Fund (continued)
- -----------------------------------------------------------------------
value
face amount (note 1)
---------------- ------------
<S> <C> <C>
Lee County, Florida, Optional Gas
Tax Revenue, MBIA Insured, 5.50%
due 10/01/07.................... $ 200,000 $ 201,136
Mississippi State, Small
Enterprise, General Obligation,
Series D, 7.75%, due 07/01/00... 155,000 159,506
Mississippi State, University
Educational Building Corp.
Revenue, MBIA Insured, 3.75% due
08/01/99........................ 260,000 259,989
Montgomery County, Ohio, Greater
Moraine-Beaver Creek Sewer
Revenue, FGIC Insured, 4.70% due
09/01/99........................ 200,000 200,095
Providence, Rhode Island, General
Obligation, MBIA Insured, 6.75%
due 01/15/10.................... 225,000 233,461
Washington State, Motor Vehicle
Fuel Tax, Series C, 4% due
01/01/00........................ 210,000 210,665
Washington State, Public Power
Supply System Revenue, Nuclear
Project #1, 7.50% due
07/01/99........................ 300,000 300,000
----------
Total Fixed Rate Bonds and Notes (cost: $1,764,950) 1,764,950
----------
VARIABLE RATE DEMAND
NOTES* - 48.33%
Allegheny County, Pennsylvania,
Hospital Development Authority,
Presbyterian University, Series
B1, 4.65% due 03/01/18.......... 95,000 95,000
Allegheny County, Pennsylvania,
Industrial Development
Authority, Longwood at Oakmont,
Inc. Project, 3.60% due
07/01/27........................ 100,000 100,000
Butte-Silver Bow, Montana,
Pollution Control Revenue,
Rhone-Poulenc, Inc. Project,
3.50% due 03/01/16.............. 100,000 100,000
Coastal Bend, Texas, Health
Facilities Corp. Revenue,
Incarnate World Health Systems,
3.65% due 08/15/27.............. 200,000 200,000
Cornell Township, Michigan,
Economic Development Corp.,
Environmental Improvement
Revenue, 3.80% due 11/01/16..... 200,000 200,000
Florida, Housing Financing
Agency, Multi-Family Revenue
Refunding, 3.55% due 04/01/26... 200,000 200,000
Fort Wayne, Indiana, Hospital
Authority Revenue, Parkview
Memorial Hospital, Series D,
3.50% due 01/01/16.............. 200,000 200,000
</TABLE>
31
<PAGE> 33
Statements of Investments in Securities and Net Assets June 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Money Fund (continued)
- -----------------------------------------------------------------------
value
face amount (note 1)
---------------- ------------
<S> <C> <C>
Illinois, Health Facilties
Financing Authority Revenue,
Ingalls Memorial Hospital,
Series C, 3.55% due 01/01/16.... $ 200,000 $ 200,000
Independence, Missouri,
Industrial Development Authority
Revenue, Groves and Graceland,
Series A, 3.60% due 11/01/27.... 100,000 100,000
Indiana, Health Facility
Authority Revenue,
Capital Access '90, 3.55% due
12/01/10....................... 100,000 100,000
Capital Access '91, 3.55% due
08/01/06....................... 100,000 100,000
Capital Access '97, 3.55% due
01/01/12....................... 100,000 100,000
Lincoln County, Wyoming,
Pollution Control Revenue, Exxon
Project B, 3.80% due 11/01/14... 100,000 100,000
Morgan County, Utah, Solid Waste
Disposal Revenue, Holnam, Inc.
Project, AMT, 3.40% due
08/01/31........................ 100,000 100,000
Purdue University, Indiana,
Revenue, Student Fee Series L,
3.50% due 07/01/20.............. 100,000 100,000
Rockwall, Texas, Industrial
Development Corp. Revenue,
Columbia Extrusion Corp., AMT,
3.70% due 07/01/14.............. 225,000 225,000
Washington, Community Economic
Revenue, Series 3, AMT, 3.70%
due 07/01/10.................... 100,000 100,000
Winston-Salem, North Carolina,
COP, Risk Acceptance Management
Corp., 3.55% due 07/01/09....... 180,000 180,000
----------
Total Variable Rate Demand Notes (cost: $2,500,000) 2,500,000
----------
TOTAL SECURITIES (COST: $5,164,950) - 99.85% 5,164,950
OTHER ASSETS AND LIABILITIES, NET - .15% 7,899
----------
NET ASSETS - 100.00% $ 5,172,849
----------
----------
Atlas U.S. Treasury Money Fund
- -----------------------------------------------------------------------
value
face amount (note 1)
---------- ----------
UNITED STATES TREASURY
BILLS - 92.57%
4.24% - 4.72% due 07/22/99 -
09/30/99........................ $ 50,790,000 $ 50,401,431
----------
Total United States Treasury Bills (cost:
$50,401,431) 50,401,431
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas U.S. Treasury Money Fund (continued)
- -----------------------------------------------------------------------
value
face amount (note 1)
---------------- ------------
<S> <C> <C>
UNITED STATES TREASURY NOTES - 7.10%
6.88% due 07/31/99............... $ 3,750,000 $ 3,864,221
----------
Total United States Treasury Notes (cost:
$3,864,221) 3,864,221
----------
TOTAL SECURITIES (COST: $54,265,652) - 99.67% 54,265,652
OTHER ASSETS AND LIABILITIES, NET - .33% 179,576
----------
NET ASSETS - 100.00% $ 54,445,228
----------
----------
</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).
(a) Restricted securities which are exempt from registration under Rule 144A of
the Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At the
end of the period the value of these securities amounted to $3,434,425 or
3.43% of net assets in the Balanced Fund, $2,107,315 or 4.42% of net assets
in the Global Growth Fund, $14,115,000 or 4.12% of net assets in the Growth
and Income Fund, and $7,071,290 or 10.00% of net assets in the Strategic
Income Fund.
(b) Non-income producing security.
(c) Represents the current interest rate for a variable rate security.
(d) Denotes a step bond: a zero coupon bond that converts to a fixed rate of
interest at a designated future date.
(e) Represents the current interest rate for an increasing rate security.
(f) Identifies issues considered to be illiquid -- See Note 10 to Financial
Statements.
(g) Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed-income
securities increase in price when interest rates decline. The principal
amount of the underlying pool represents the notional amount on which
current interest is calculated. The price of these securities is typically
more sensitive to changes in prepayment rates than traditional
mortgage-backed securities (for example, GNMA pass-throughs).
(h) Interest or dividend is paid in kind.
(i) 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.
(j) Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
<TABLE>
<S> <C>
AUD - Australian Dollar IDR - Indonesian Rupiah
ARP - Argentine Peso IEP - Irish Punt
CAD - Canadian Dollar INR - Indian Rupee
CHF - Swiss Franc ITL - Italian Lira
CNR - China Renminbi 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
EUR - European Currency Unit PLZ - Polish Zloty
FIM - Finnish Markka RUR - Russian Ruble
FRF - French Franc SEK - Swedish Krona
GBP - British Pound Sterling SKK - Slovakian Koruna
GRD - Greek Drachma ZAR - South African Rand
HKD - Hong Kong Dollar
</TABLE>
(k) Securities with an aggregate market value of $2,022,968 are held in
collateralized accounts to cover initial margin requirements on open futures
purchases and sales contracts. See Note 8 of Notes to Financial Statements.
(l) A sufficient amount of securities has been designated to cover outstanding
forward currency exchange contracts. See Note 7 of Notes to Financial
Statements.
The accompanying notes are an integral part of these financial statements.
32
<PAGE> 34
- --------------------------------------------------------------------------------
<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>
</TABLE>
(m) A sufficient amount of securities has been designated to cover outstanding
written call and put options, as follows:
<TABLE>
<S> <C> <C> <C> <C> <C>
Strategic Income Fund:
- -------------------
Brazil (Federal Republic of)
Capitalization Bonds, 8% due 4/15/14 Put Option 4,482 7/15/99 66.625 BRA $13,543 $ 4,509
Brazil (Federal Republic of)
Capitalization Bonds, 8% due 4/15/14 Put Option 1,673 7/20/99 63.375 BRA 5,384 3,551
Mexico Peso Put Option 2,640,000 9/23/99 11.00 MXP 8,568 5,203
Mexico Peso Put Option 2,086,500 10/11/99 10.70 MXP 6,240 5,970
Mexico Peso Put Option 2,096,250 10/13/99 10.75 MXP 5,402 5,551
--------------------
$39,137 $24,784
--------------------
--------------------
</TABLE>
ACES = Automatic Common Exchange Security
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
PIES = Premium Income Equity Security
PRIDES = Provisionally Redeemable Income Debt Exchangeable for Stock
STRYPES = Structured Yield Product Exchangeable for Stock
33
<PAGE> 35
Statements of Assets and Liabilities June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
---------------------------------------------------------------------------------------------
Emerging Global Growth and Strategic
Balanced Growth Growth Income Growth
Fund Fund Fund Fund Fund
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in securities, at
identified cost............. $ 88,265,956 $11,974,774 $38,489,108 $269,726,159 $75,238,491
------------ ----------- ----------- ------------ -----------
------------ ----------- ----------- ------------ -----------
Investment in securities, at
value....................... $ 99,596,816 $13,699,663 $48,267,047 $353,128,534 $87,345,068
Cash.......................... 0 0 239,772 0 0
Receivables:
Securities sold............. 0 512,205 355,238 0 1,791,410
Fund's shares sold.......... 80,837 259 53,216 453,177 121,374
Interest and dividends...... 611,334 788 97,891 483,615 46,943
Other....................... 2,215 28 44,832 4,418 0
Variation margin on futures
contracts................... 0 0 0 0 0
------------ ----------- ----------- ------------ -----------
Total assets.................. 100,291,202 14,212,943 49,057,996 354,069,744 89,304,795
------------ ----------- ----------- ------------ -----------
LIABILITIES:
Payables for:
Securities purchased........ 0 291,600 1,095,820 11,014,952 1,978,598
Fund's shares redeemed...... 35,827 2,394 11,926 71,608 110,002
Dividends................... 32,960 0 0 7,611 0
Accrued expenses.............. 141,675 20,938 77,224 432,155 123,338
Unrealized depreciation on
forward foreign exchange
currency contract........... 0 0 171,376 0 0
Options written, at value
(premiums received
$39,137).................... 0 0 0 0 0
------------ ----------- ----------- ------------ -----------
Total liabilities............. 210,462 314,932 1,356,346 11,526,326 2,211,938
------------ ----------- ----------- ------------ -----------
NET ASSETS...................... $100,080,740 $13,898,011 $47,701,650 $342,543,418 $87,092,857
------------ ----------- ----------- ------------ -----------
------------ ----------- ----------- ------------ -----------
NET ASSETS CONSIST OF:
Net unrealized appreciation
(depreciation)................ $ 11,330,917 $ 1,724,889 $ 9,599,551 $ 83,402,375 $12,106,577
Accumulated net realized gain
(loss)...................... 1,068,650 (1,969,835) 3,559,395 24,080,122 6,206,258
Undistributed net investment
income (loss)............... 1,454 (269,602) 158,439 (382) 49,584
Paid in capital............... 87,679,719 14,412,559 34,384,265 235,061,303 68,730,438
------------ ----------- ----------- ------------ -----------
NET ASSETS...................... $100,080,740 $13,898,011 $47,701,650 $342,543,418 $87,092,857
------------ ----------- ----------- ------------ -----------
------------ ----------- ----------- ------------ -----------
NET ASSET VALUE PER SHARE:
Class A
Net assets.................. $ 90,173,380 $12,457,257 $41,394,018 $318,748,877 $74,484,461
Shares outstanding.......... 6,129,415 986,702 2,544,875 12,716,609 3,948,313
Net asset value per share
and maximum offering
price....................... $ 14.71 $ 12.63 $ 16.27 $ 25.07 $ 18.86
Class B
Net assets.................. $ 9,907,360 $ 1,440,754 $ 6,307,632 $ 23,794,541 $12,608,396
Shares outstanding.......... 676,250 115,702 395,219 953,861 677,813
Net asset value per share
and maximum offering
price....................... $ 14.65 $ 12.45 $ 15.96 $ 24.95 $ 18.60
CAPITAL SHARES AUTHORIZED:...... 20,000,000 15,000,000 15,000,000 20,000,000 10,000,000
------------ ----------- ----------- ------------ -----------
------------ ----------- ----------- ------------ -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE> 36
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds Money Funds
- --------------------------------------------------------------------------------------------------------
California National Strategic U.S. Government California National
Municipal Municipal Income and Mortgage Municipal Municipal U.S. Treasury
Bond Fund Bond Fund Fund Securities Fund Money Fund Money Fund Money Fund
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$210,316,001 $61,022,872 $76,884,624 $231,538,706 $ 36,704,020 $ 5,164,950 $ 54,265,652
---------- --------- --------- ------------ ---------- ---------- -----------
---------- --------- --------- ------------ ---------- ---------- -----------
$218,029,533 $62,861,322 $72,943,700 $228,723,950 $ 36,704,020 $ 5,164,950 $ 54,265,652
53,420 0 0 130 69,090 16,264 145,623
0 0 405,437 57,168 2,000,000 0 0
50,550 10,974 122,112 196,768 139,164 106,677 148,051
3,701,280 898,598 1,504,419 1,361,373 321,118 48,578 0
0 0 17,346 13,967 0 0 0
0 0 3,021 0 0 0 0
---------- --------- --------- ------------ ---------- ---------- -----------
221,834,783 63,770,894 74,996,035 230,353,356 39,233,392 5,336,469 54,559,326
---------- --------- --------- ------------ ---------- ---------- -----------
2,008,832 0 3,539,178 2,016,198 1,005,780 160,407 0
1,824 0 191,298 186,944 3,117 0 75,167
241,438 59,010 249,268 382,397 3,298 405 6,775
227,444 90,074 282,438 303,466 19,670 2,808 32,156
0 0 8,913 0 0 0 0
0 0 24,784 0 0 0 0
---------- --------- --------- ------------ ---------- ---------- -----------
2,479,538 149,084 4,295,879 2,889,005 1,031,865 163,620 114,098
---------- --------- --------- ------------ ---------- ---------- -----------
$219,355,245 $63,621,810 $70,700,156 $227,464,351 $ 38,201,527 $ 5,172,849 $ 54,445,228
---------- --------- --------- ------------ ---------- ---------- -----------
---------- --------- --------- ------------ ---------- ---------- -----------
$ 7,713,532 $ 1,838,450 $(3,962,517) $ (2,814,756) $ 0 $ 0 $ 0
(133,582) (22,578) (1,184,215) (14,833,983) (85) (377) (24,209)
0 0 24,233 0 0 0 0
211,775,295 61,805,938 75,822,655 245,113,090 38,201,612 5,173,226 54,469,437
---------- --------- --------- ------------ ---------- ---------- -----------
$219,355,245 $63,621,810 $70,700,156 $227,464,351 $ 38,201,527 $ 5,172,849 $ 54,445,228
---------- --------- --------- ------------ ---------- ---------- -----------
---------- --------- --------- ------------ ---------- ---------- -----------
$211,315,668 $60,594,972 $64,789,122 $221,128,697 $ 38,201,527 $ 5,172,849 $ 53,892,846
19,093,985 5,468,439 13,556,712 22,434,617 38,201,612 5,173,226 53,916,987
$ 11.07 $ 11.08 $ 4.78 $ 9.86 $ 1.00 $ 1.00 $ 1.00
$ 8,039,577 $ 3,026,838 $ 5,911,034 $ 6,335,654 NA NA $ 552,382
726,003 273,006 1,238,827 642,772 NA NA 552,450
$ 11.07 $ 11.09 $ 4.77 $ 9.86 NA NA $ 1.00
50,000,000 20,000,000 50,000,000 50,000,000 350,000,000 130,000,000 125,000,000
---------- --------- --------- ------------ ---------- ---------- -----------
---------- --------- --------- ------------ ---------- ---------- -----------
</TABLE>
35
<PAGE> 37
Statements of Operations For the six months ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
------------------------------------------------------------------------------------------
Emerging Global Growth and Strategic
Balanced Growth Growth Income Growth
Fund Fund Fund Fund Fund
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest....................... $ 1,170,540 $ 13,293 $ 17,643 $ 916,816 $ 295,648
Dividends...................... 966,191 4,351 497,820 1,242,640 279,930
----------- ----------- ---------- ----------- -----------
Total income..................... 2,136,731 17,644 515,463 2,159,456 575,578
----------- ----------- ---------- ----------- -----------
Expenses:
Management fees................ 345,245 61,493 176,293 951,454 295,990
Distribution fees:
Class A...................... 110,925 17,187 47,524 347,950 90,251
Class B...................... 37,130 6,089 22,702 82,969 46,379
Transfer agency fees and
expenses..................... 53,708 24,858 32,820 123,591 52,773
Custodian fees and expenses.... 28,838 18,938 64,233 75,037 23,730
Directors' fees................ 2,371 358 1,081 6,968 2,076
Registration fees.............. 1,505 693 903 7,086 755
Accounting and legal fees...... 7,614 6,653 7,115 8,958 7,486
Reports to shareholders........ 7,836 2,831 5,266 20,294 8,533
Other.......................... 0 0 514 0 0
----------- ----------- ---------- ----------- -----------
Total expenses............... 595,172 139,100 358,451 1,624,307 527,973
Management fees waived:
Class A...................... 0 0 0 0 0
Class B...................... 0 0 0 0 0
Distribution fees waived:
Class A...................... 0 (11,279) 0 0 0
Class B...................... 0 0 0 (10,034) 0
Expense reimbursement:
Class A...................... 0 0 0 0 0
Class B...................... (5,324) (6,268) (5,295) (7,404) (3,205)
----------- ----------- ---------- ----------- -----------
Net expenses..................... 589,848 121,553 353,156 1,606,869 524,768
----------- ----------- ---------- ----------- -----------
Net investment income (loss)..... 1,546,883 (103,909) 162,307 552,587 50,810
----------- ----------- ---------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCY:
Realized gain (loss) from:
Security transactions
(including premiums on options
exercised)..................... 1,067,981 (633,854) 4,326,521 22,851,339 6,743,054
Closing of futures contracts... 0 0 0 0 0
Closing and expiration of
options written................ 0 0 0 159,831 0
Foreign currency
transactions................... 0 0 (20,059) 0 0
----------- ----------- ---------- ----------- -----------
Net realized gain (loss) on
investments and foreign
currency......................... 1,067,981 (633,854) 4,306,462 23,011,170 6,743,054
----------- ----------- ---------- ----------- -----------
Unrealized appreciation
(depreciation):
Beginning of period............ 10,760,597 2,616,144 9,092,999 67,840,229 10,726,776
End of period.................. 11,330,917 1,724,889 9,599,551 83,402,375 12,106,577
----------- ----------- ---------- ----------- -----------
Net change in unrealized
appreciation (depreciation) on
investments and foreign
currency......................... 570,320 (891,255) 506,552 15,562,146 1,379,801
----------- ----------- ---------- ----------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currency......................... 1,638,301 (1,525,109) 4,813,014 38,573,316 8,122,855
----------- ----------- ---------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations....................... $ 3,185,184 $(1,629,018) $4,975,321 $39,125,903 $ 8,173,665
=========== =========== ========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
36
<PAGE> 38
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds Money Funds
---------------------------------------------------------------------------------------------------
California National Strategic U.S. Government California National
Municipal Municipal Income and Mortgage Municipal Municipal U.S. Treasury
Bond Fund Bond Fund Fund Securities Fund Money Fund Money Fund Money Fund
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 5,925,348 $ 1,783,661 $ 3,152,683 $ 7,911,285 $574,242 $ 84,126 $1,245,583
0 0 54,602 0 0 0 0
----------- ----------- ----------- ----------- -------- -------- ----------
5,925,348 1,783,661 3,207,285 7,911,285 574,242 84,126 1,245,583
----------- ----------- ----------- ----------- -------- -------- ----------
610,164 181,035 266,077 627,335 97,882 13,274 140,411
267,224 78,309 80,516 24,685 48,941 6,637 69,500
30,370 11,939 24,529 276,924 0 0 2,118
63,446 28,517 45,022 115,785 13,805 3,569 55,825
64,248 22,573 72,527 99,566 15,064 7,654 16,340
5,388 1,616 1,692 5,598 961 130 1,379
2,247 928 1,545 3,549 1,031 699 742
8,741 7,315 12,361 8,798 6,546 6,236 7,226
7,563 1,771 3,944 14,372 1,640 385 5,536
2,778 120 0 3,528 30 0 338
----------- ----------- ----------- ----------- -------- -------- ----------
1,062,169 334,123 508,213 1,180,140 185,900 38,584 299,415
0 0 (26,298) 0 (14,623) (12,918) (29,399)
0 0 (2,679) 0 0 0 (298)
(103,948) (4,732) (80,516) 0 (48,941) (6,637) (69,500)
0 0 0 0 0 0 0
0 0 0 0 0 (592) 0
(7,308) (7,513) (4,828) (6,932) NA NA (7,719)
----------- ----------- ----------- ----------- -------- -------- ----------
950,913 321,878 393,892 1,173,208 122,336 18,437 192,499
----------- ----------- ----------- ----------- -------- -------- ----------
4,974,435 1,461,783 2,813,393 6,738,077 451,906 65,689 1,053,084
----------- ----------- ----------- ----------- -------- -------- ----------
(140,164) (48,293) (360,859) (200,009) 0 0 (65)
0 0 (187,718) 0 0 0 0
0 0 (12,791) 0 0 0 0
0 0 (129,479) 0 0 0 0
----------- ----------- ----------- ----------- -------- -------- ----------
(140,164) (48,293) (690,847) (200,009) 0 0 (65)
----------- ----------- ----------- ----------- -------- -------- ----------
15,896,139 4,551,750 (1,791,396) 4,098,554 0 0 0
7,713,532 1,838,450 (3,962,517) (2,814,756) 0 0 0
----------- ----------- ----------- ----------- -------- -------- ----------
(8,182,607) (2,713,300) (2,171,121) (6,913,310) 0 0 0
----------- ----------- ----------- ----------- -------- -------- ----------
(8,322,771) (2,761,593) (2,861,968) (7,113,319) 0 0 (65)
----------- ----------- ----------- ----------- -------- -------- ----------
$(3,348,336) $(1,299,810) $ (48,575) $ (375,242) $451,906 $ 65,689 $1,053,019
=========== =========== =========== =========== ======== ======== ==========
</TABLE>
37
<PAGE> 39
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
----------------------------------------------------------------
Balanced Fund Emerging Growth Fund
----------------------------------------------------------------
1999(1) 1998(2) 1999(1) 1998(2)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss)............ $ 1,546,883 $ 2,616,330 $ (103,909) $ (127,047)
Net realized gain (loss) on investments
and foreign currency.................... 1,067,981 2,770,672 (633,854) (1,164,001)
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency........................ 570,320 745,373 (891,255) 1,692,655
---------- ---------- --------- ---------
Net increase (decrease) in net assets
resulting from operations............... 3,185,184 6,132,375 (1,629,018) 401,607
---------- ---------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A............................... (1,412,880) (2,355,024) 0 0
Class B............................... (132,716) (261,128) 0 0
Tax return of capital:
Class A............................... 0 0 0 0
Class B............................... 0 0 0 0
From net realized gain:
Class A............................... 0 (2,482,959) 0 0
Class B............................... 0 (287,023) 0 0
In excess of net realized gain on
investments:
Class A............................... 0 0 0 0
Class B............................... 0 0 0 0
---------- ---------- --------- ---------
Total distributions:
Class A............................... (1,412,880) (4,837,983) 0 0
Class B............................... (132,716) (548,151) 0 0
---------- ---------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A............................... 14,878,287 48,172,573 1,181,073 9,959,353
Class B............................... 157,689 506,658 78,841 124,939
Reinvestment of distributions:
Class A............................... 1,358,776 4,691,092 (324) 0
Class B............................... 120,100 511,405 0 0
Cost of shares redeemed:
Class A............................... (15,972,497) (14,427,520) (4,019,985) (3,549,539)
Class B............................... (670,801) (638,463) (529,283) (382,842)
---------- ---------- --------- ---------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A............................... 264,566 38,436,145 (2,839,236) 6,409,814
Class B............................... (393,012) 379,600 (450,442) (257,903)
---------- ---------- --------- ---------
Net increase (decrease) in net assets... 1,511,142 39,561,986 (4,918,696) 6,553,518
NET ASSETS:
Beginning of period..................... 98,569,598 59,007,612 18,816,707 12,263,189
---------- ---------- --------- ---------
End of period........................... $100,080,740 $ 98,569,598 $13,898,011 $18,816,707
---------- ---------- --------- ---------
---------- ---------- --------- ---------
<CAPTION>
Stock Funds
-----------------------------------
Global Growth Fund
-----------------------------------
1999(1) 1998(2)
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss)............ $ 162,307 $ (13,764)
Net realized gain (loss) on investments
and foreign currency.................... 4,306,462 (8,163)
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency........................ 506,552 5,151,652
--------- ---------
Net increase (decrease) in net assets
resulting from operations............... 4,975,321 5,129,725
--------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A............................... 0 0
Class B............................... 0 0
Tax return of capital:
Class A............................... 0 0
Class B............................... 0 0
From net realized gain:
Class A............................... 0 0
Class B............................... 0 0
In excess of net realized gain on
investments:
Class A............................... 0 (458,278)
Class B............................... 0 (76,659)
--------- ---------
Total distributions:
Class A............................... 0 (458,278)
Class B............................... 0 (76,659)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A............................... 5,003,604 12,555,581
Class B............................... 126,554 145,313
Reinvestment of distributions:
Class A............................... 160 454,679
Class B............................... 0 75,483
Cost of shares redeemed:
Class A............................... (4,474,847) (9,773,797)
Class B............................... (494,515) (645,016)
--------- ---------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A............................... 528,917 3,236,463
Class B............................... (367,961) (424,220)
--------- ---------
Net increase (decrease) in net assets... 5,136,277 7,407,031
NET ASSETS:
Beginning of period..................... 42,565,373 35,158,342
--------- ---------
End of period........................... $47,701,650 $42,565,373
--------- ---------
--------- ---------
</TABLE>
(1) For the six months ended June 30, 1999 (unaudited).
(2) For the year ended December 31, 1998.
The accompanying notes are an integral part of these financial statements.
38
<PAGE> 40
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
-------------------------------------------------------------------------------------------------------------------------------
Growth and Income Fund Strategic Growth Fund California Municipal Bond Fund National Municipal Bond Fund
-------------------------------------------------------------------------------------------------------------------------------
1999(1) 1998(2) 1999(1) 1998(2) 1999(1) 1998(2) 1999(1) 1998(2)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 552,587 $ 1,546,334 $ 50,810 $ 370,066 $ 4,974,435 $ 9,340,842 $ 1,461,783 $ 2,814,624
23,011,170 18,119,781 6,743,054 4,195,214 (140,164) 1,982,806 (48,293) 613,677
15,562,146 32,400,882 1,379,801 2,743,649 (8,182,607) 834,361 (2,713,300) 71,742
---------- ---------- ---------- ---------- ----------- ----------- ---------- ----------
39,125,903 52,066,997 8,173,665 7,308,929 (3,348,336) 12,158,009 (1,299,810) 3,500,043
---------- ---------- ---------- ---------- ----------- ----------- ---------- ----------
(549,624) (1,504,508) (60) (371,222) (4,815,587) (9,025,681) (1,398,763) (2,689,025)
(3,330) (41,814) 0 0 (158,848) (315,161) (63,020) (125,599)
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 (15,676,669) 0 (3,571,479) 0 (1,910,671) 0 (585,693)
0 (1,326,962) 0 (623,735) 0 (71,983) 0 (30,317)
0 0 0 (458,195) 0 0 0 0
0 0 0 (78,584) 0 0 0 0
---------- ---------- ---------- ---------- ----------- ----------- ---------- ----------
(549,624) (17,181,177) (60) (4,400,896) (4,815,587) (10,936,352) (1,398,763) (3,274,718)
(3,330) (1,368,776) 0 (702,319) (158,848) (387,144) (63,020) (155,916)
---------- ---------- ---------- ---------- ----------- ----------- ---------- ----------
52,359,356 60,420,339 6,339,292 27,311,748 18,642,130 30,974,047 4,112,609 8,468,075
1,149,551 1,070,449 102,389 666,556 464,998 214,308 65,933 157,266
550,302 16,845,096 2,916 4,360,431 3,367,245 7,860,019 1,053,488 2,564,103
3,202 1,330,360 0 685,674 109,915 293,120 55,499 138,510
(18,532,441) (32,989,965) (12,493,283) (14,070,156) (14,611,727) (22,989,735) (4,498,836) (7,280,380)
(1,115,988) (2,659,625) (1,285,131) (1,560,567) (215,079) (582,127) (206,833) (217,094)
---------- ---------- ---------- ---------- ----------- ----------- ---------- ----------
34,377,217 44,275,470 (6,151,075) 17,602,023 7,397,648 15,844,331 667,261 3,751,798
36,765 (258,816) (1,182,742) (208,337) 359,834 (74,699) (85,401) 78,682
---------- ---------- ---------- ---------- ----------- ----------- ---------- ----------
72,986,931 77,533,698 839,788 19,599,400 (565,289) 16,604,145 (2,179,733) 3,899,889
269,556,487 192,022,789 86,253,069 66,653,669 219,920,534 203,316,389 65,801,543 61,901,654
---------- ---------- ---------- ---------- ----------- ----------- ---------- ----------
$342,543,418 $269,556,487 $ 87,092,857 $ 86,253,069 $219,355,245 $219,920,534 $63,621,810 $65,801,543
---------- ---------- ---------- ---------- ----------- ----------- ---------- ----------
---------- ---------- ---------- ---------- ----------- ----------- ---------- ----------
</TABLE>
39
<PAGE> 41
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
------------------------------------------------------------------
U.S. Government and
Strategic Income Fund Mortgage Securities Fund
------------------------------------------------------------------
1999(1) 1998(2) 1999(1) 1998(2)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss)......... $ 2,813,393 $ 4,805,633 $ 6,738,077 $ 12,982,148
Net realized gain (loss) on
investments and foreign currency..... (690,847) (378,134) (200,009) (51,560)
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency..................... (2,171,121) (2,299,057) (6,913,310) (570,534)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (48,575) 2,128,442 (375,242) 12,360,054
---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A............................ (2,576,677) (3,983,874) (6,558,704) (12,586,020)
Class B............................ (236,716) (480,703) (179,373) (396,128)
Tax return of capital:
Class A............................ 0 (288,617) 0 0
Class B............................ 0 (34,825) 0 0
From net realized gain:
Class A............................ 0 0 0 0
Class B............................ 0 0 0 0
In excess of net realized gain on
investments:
Class A............................ 0 (39,601) 0 0
Class B............................ 0 (4,308) 0 0
---------- ---------- ---------- ----------
Total distributions:
Class A............................ (2,576,677) (4,312,092) (6,558,704) (12,586,020)
Class B............................ (236,716) (519,836) (179,373) (396,128)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A............................ 13,023,199 46,697,973 36,585,807 48,394,123
Class B............................ 95,638 380,992 154,108 380,659
Reinvestment of distributions:
Class A............................ 1,309,461 2,330,794 4,292,430 8,061,608
Class B............................ 129,681 285,373 125,988 276,715
Cost of shares redeemed:
Class A............................ (13,321,344) (18,062,331) (29,182,573) (42,086,318)
Class B............................ (1,254,269) (1,228,478) (545,924) (1,058,306)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A............................ 1,011,316 30,966,436 11,695,664 14,369,413
Class B............................ (1,028,950) (562,113) (265,828) (400,932)
---------- ---------- ---------- ----------
Net increase (decrease) in net
assets............................... (2,879,602) 27,700,837 4,316,517 13,346,387
NET ASSETS:
Beginning of period.................. 73,579,758 45,878,921 223,147,834 209,801,447
---------- ---------- ---------- ----------
End of period........................ $ 70,700,156 $ 73,579,758 $227,464,351 $223,147,834
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
<CAPTION>
Money Funds
---------------------------------------
California Municipal Money Fund
---------------------------------------
1999(1) 1998(2)
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss)......... $ 451,906 $ 1,137,810
Net realized gain (loss) on
investments and foreign currency..... 0 0
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency..................... 0 0
----------- -----------
Net increase (decrease) in net assets
resulting from operations............ 451,906 1,137,810
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A............................ (451,906) (1,137,810)
Class B............................ NA NA
Tax return of capital:
Class A............................ 0 0
Class B............................ NA NA
From net realized gain:
Class A............................ 0 0
Class B............................ NA NA
In excess of net realized gain on
investments:
Class A............................ 0 0
Class B............................ NA NA
----------- -----------
Total distributions:
Class A............................ (451,906) (1,137,810)
Class B............................ NA NA
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A............................ 9,230,010 31,054,254
Class B............................ NA NA
Reinvestment of distributions:
Class A............................ 435,759 1,091,252
Class B............................ NA NA
Cost of shares redeemed:
Class A............................ (11,947,730) (36,412,745)
Class B............................ NA NA
----------- -----------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A............................ (2,281,961) (4,267,239)
Class B............................ NA NA
----------- -----------
Net increase (decrease) in net
assets............................... (2,281,961) (4,267,239)
NET ASSETS:
Beginning of period.................. 40,483,488 44,750,725
----------- -----------
End of period........................ $ 38,201,527 $ 40,483,486
----------- -----------
----------- -----------
</TABLE>
(1) For the six months ended June 30, 1999 (unaudited).
(2) For the year ended December 31, 1998.
The accompanying notes are an integral part of these financial statements.
40
<PAGE> 42
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------------------
National Municipal
Money Fund U.S. Treasury Money Fund
-------------------------------------------------------------------
1999(1) 1998(2) 1999(1) 1998(2)
<S> <C> <C> <C> <C> <C> <C>
$ 65,689 $ 166,712 $ 1,053,084 $ 2,643,142
0 0 (65) (4,012)
0 0 0 0
--------- --------- --------- ----------
65,689 166,712 1,053,019 2,639,130
--------- --------- --------- ----------
(65,689) (166,712) (1,044,563) (2,632,049)
NA NA (8,521) (11,093)
0 0 0 0
NA NA 0 0
0 0 0 0
NA NA 0 0
0 0 0 0
NA NA 0 0
--------- --------- ---------- ----------
(65,689) (166,712) (1,044,563) (2,632,049)
NA NA (8,521) (11,093)
--------- --------- --------- ----------
1,916,241 2,701,089 20,988,220 50,707,219
NA NA 318,275 800,236
62,637 153,899 999,753 2,505,436
NA NA 8,521 10,803
(2,270,525) (3,969,166) (26,280,780) (55,056,160)
NA NA (316,023) (433,563)
--------- --------- ---------- ----------
(291,647) (1,114,178) (4,292,807) (1,843,505)
NA NA 10,773 377,476
--------- --------- --------- ----------
(291,647) (1,114,178) (4,282,099) (1,470,041)
5,464,496 6,578,674 58,727,327 60,197,368
--------- --------- --------- ----------
$ 5,172,849 $ 5,464,496 $ 54,445,228 $ 58,727,327
--------- --------- --------- ----------
--------- --------- --------- ----------
<CAPTION>
<S> <C> <C> <C> <C>
</TABLE>
41
<PAGE> 43
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
---------------------------------------------------------------------------------------
Balanced Fund
Class A Class B
---------------------------------------------------------------------------------------
June 30, December 31, June 30, December 31,
1999(1) 1998 1997 1996 1995 1994 1999(1) 1998 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 14.47 $ 14.14 $ 12.18 $ 11.19 $ 9.23 $ 9.85 $14.41 $ 14.09 $12.15
------ ----- ----- ----- ----- ---- ----- ----- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.23 0.46 0.46 0.42 0.42 0.44 0.20 0.41 0.39
Net realized and unrealized gain
on investments................... 0.24 0.75 2.27 1.32 2.02 (0.62) 0.24 0.72 2.26
------ ----- ----- ----- ----- ---- ----- ----- ----
Total from investment
operations....................... 0.47 1.21 2.73 1.74 2.44 (0.18) 0.44 1.13 2.65
------ ----- ----- ----- ----- ---- ----- ----- ----
LESS DISTRIBUTIONS:
From net investment income....... (0.23) (0.46) (0.46) (0.42) (0.42) (0.44) (0.20) (0.39) (0.40)
From net capital gains........... 0.00 (0.42) (0.31) (0.33) (0.06) 0.00 0.00 (0.42) (0.31)
In excess of realized gains...... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tax return of capital
distribution..................... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------ ----- ----- ----- ----- ---- ----- ----- ----
Total distributions.............. (0.23) (0.88) (0.77) (0.75) (0.48) (0.44) (0.20) (0.81) (0.71)
------ ----- ----- ----- ----- ---- ----- ----- ----
Net asset value, end of period.... $ 14.71 $ 14.47 $ 14.14 $ 12.18 $ 11.19 $ 9.23 $14.65 $ 14.41 $14.09
------ ----- ----- ----- ----- ---- ----- ----- ----
------ ----- ----- ----- ----- ---- ----- ----- ----
Total return(4)................... 3.29% 8.63% 22.72% 15.81% 26.76% -1.87% 3.05% 8.04% 22.05%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $90,173 $88,430 $49,456 $29,289 $13,547 $9,654 $9,907 $10,139 $9,552
Ratio of expenses to average net
assets:(5)
Before expense reimbursement... 1.16% 1.16% 1.20% 1.28% 1.53% 1.56% 1.75% 1.76% 1.91%
After expense reimbursement.... 1.16% 1.16% 1.20% 1.28% 1.48% 0.80% 1.64% 1.66% 1.69%
Ratio of net investment income to
average net assets(5)............ 3.21% 3.28% 3.58% 3.86% 4.15% 4.85% 2.73% 2.77% 3.07%
Portfolio turnover rate.......... 6.96% 33.62% 14.71% 41.41% 25.84% 29.19% 6.96% 33.62% 14.71%
<CAPTION>
Stock Funds
-------------------------------------
Balanced Fund
Class B
-------------------------------------
July 1, 1994(2)
through
1996 1995 Dec. 31, 1994
<S> <C> <C> <C>
Net asset value, beginning of
period........................... $11.17 $ 9.22 $ 9.41
---- ---- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.36 0.35 0.10
Net realized and unrealized gain
on investments................... 1.32 2.03 (0.07)
---- ---- -------
Total from investment
operations....................... 1.68 2.38 0.03
---- ---- -------
LESS DISTRIBUTIONS:
From net investment income....... (0.37) (0.37) (0.22)
From net capital gains........... (0.33) (0.06) 0.00
In excess of realized gains...... 0.00 0.00 0.00
Tax return of capital
distribution..................... 0.00 0.00 0.00
---- ---- -------
Total distributions.............. (0.70) (0.43) (0.22)
---- ---- -------
Net asset value, end of period.... $12.15 $11.17 $ 9.22
---- ---- -------
---- ---- -------
Total return(4)................... 15.25% 26.08% 0.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $4,802 $1,632 $ 586
Ratio of expenses to average net
assets:(5)
Before expense reimbursement... 2.21% 3.25% 3.25%
After expense reimbursement.... 1.77% 1.99% 1.48%
Ratio of net investment income to
average net assets(5)............ 3.37% 3.66% 4.43%
Portfolio turnover rate.......... 41.41% 25.84% 29.19%
</TABLE>
(1) Unaudited.
(2) Commencement of operations.
(3) Effective date of registration.
(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) Annualized when the period presented is less than one year.
The accompanying notes are an integral part of these financial statements.
42
<PAGE> 44
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Emerging Growth Fund Global Growth Fund
Class A Class B Class A
----------------------------------------------------------------------------------------------------------------
April 30, 1997(2) April 30, 1997(2)
June 30, Dec. 31, through June 30, Dec. 31, through June 30, December 31,
1999(1) 1998 Dec. 31, 1997 1999(1) 1998 Dec. 31, 1997 1999(1) 1998 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13.75 $ 13.00 $ 10.00 $13.60 $12.93 $10.00 $ 14.56 $ 12.69 $ 10.96
------ ------ ------ ----- ----- ----- ------ ----- -----
(0.08) (0.09) (0.05) (0.11) (0.17) (0.12) 0.06 0.00 0.02
(1.04) 0.84 3.05 (1.04) 0.84 3.05 1.65 2.21 2.65
------ ------ ------ ----- ----- ----- ------ ----- -----
(1.12) 0.75 3.00 (1.15) 0.67 2.93 1.71 2.21 2.67
------ ------ ------ ----- ----- ----- ------ ----- -----
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 0.00 (0.18) (0.84)
0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.16) (0.10)
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 0.00 (0.34) (0.94)
------ ------ ------ ----- ----- ----- ------ ----- -----
$ 12.63 $ 13.75 $ 13.00 $12.45 $13.60 $12.93 $ 16.27 $ 14.56 $ 12.69
------ ------ ------ ----- ----- ----- ------ ----- -----
------ ------ ------ ----- ----- ----- ------ ----- -----
-8.15% 5.77% 30.00% -8.46% 5.18% 29.30% 11.74% 16.19% 24.35%
$12,457 $16,747 $10,028 $1,441 $2,070 $2,235 $41,394 $36,549 $29,468
1.70% 1.59% 1.88% 2.88% 2.62% 3.25% 1.55% 1.53% 1.66%
1.53% 1.49% 1.49% 2.10% 2.08% 2.23% 1.55% 1.53% 1.62%
-1.30% -0.68% -0.59% -1.87% -1.27% -1.35% 0.82% 0.04% 0.14%
60.83% 106.24% 17.06% 60.83% 106.24% 17.06% 57.65% 74.52% 63.62%
<CAPTION>
------------------------------------------------------------------
Global Growth Fund
Class A Class B
------------------------------------------------------------------
April 30, 1996(3) April 30, 1996(3)
through June 30, December 31, through
Dec. 31, 1996 1999(1) 1998 1997 Dec. 31, 1996
<S> <C> <C> <C> <C> <C>
$ 10.14 $14.32 $12.55 $10.91 $10.14
------ ----- ---- ---- -----
0.01 0.02 (0.06) (0.05) (0.03)
1.10 1.62 2.17 2.63 1.08
------ ----- ---- ---- -----
1.11 1.64 2.11 2.58 1.05
------ ----- ---- ---- -----
(0.01) 0.00 0.00 0.00 0.00
(0.27) 0.00 (0.18) (0.84) (0.27)
(0.01) 0.00 (0.16) (0.10) (0.01)
0.00 0.00 0.00 0.00 0.00
------ ----- ---- ---- -----
(0.29) 0.00 (0.34) (0.94) (0.28)
------ ----- ---- ---- -----
$ 10.96 $15.96 $14.32 $12.55 $10.91
------ ----- ---- ---- -----
------ ----- ---- ---- -----
10.89% 11.45% 15.58% 23.64% 10.34%
$13,552 $6,307 $6,017 $5,691 $2,210
2.36% 2.22% 2.21% 2.48% 3.25%
1.51% 2.05% 2.04% 2.14% 2.24%
0.13% 0.28% -0.46% -0.40% -0.75%
64.89% 57.65% 74.52% 63.62% 64.89%
</TABLE>
43
<PAGE> 45
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
------------------------------------------------------------------------
Growth and Income Fund
Class A Class B
------------------------------------------------------------------------
June 30, December 31, June 30,
1999(1) 1998 1997 1996 1995 1994 1999(1)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 22.08 $ 18.86 $ 17.82 $ 15.91 $ 13.52 $ 14.01 $ 21.99
------ ------ ------ ------ ----- ----- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.05 0.15 0.10 0.14 0.20 0.16 0.00
Net realized and unrealized gain
on investments................... 2.99 4.71 4.58 3.06 4.26 (0.34) 2.96
------ ------ ------ ------ ----- ----- ------
Total from investment
operations....................... 3.04 4.86 4.68 3.20 4.46 (0.18) 2.96
------ ------ ------ ------ ----- ----- ------
LESS DISTRIBUTIONS:
From net investment income....... (0.05) (0.15) (0.10) (0.14) (0.20) (0.16) 0.00
From net capital gains........... 0.00 (1.49) (3.53) (1.15) (1.87) (0.12) 0.00
In excess of realized gains...... 0.00 0.00 (0.01) 0.00 0.00 (0.03) 0.00
Tax return of capital
distribution..................... 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ----- ----- ------
Total distributions.............. (0.05) (1.64) (3.64) (1.29) (2.07) (0.31) (0.00)
------ ------ ------ ------ ----- ----- ------
Net asset value, end of period.... $ 25.07 $ 22.08 $ 18.86 $ 17.82 $ 15.91 $ 13.52 $ 24.95
------ ------ ------ ------ ----- ----- ------
------ ------ ------ ------ ----- ----- ------
Total return(3)................... 13.75% 25.83% 26.32% 20.16% 33.06% -1.24% 13.48%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $318,749 $248,606 $173,796 $138,604 $93,061 $69,590 $23,794
Ratio of expenses to average net
assets:(4)
Before expense reimbursement... 1.05% 1.06% 1.10% 1.16% 1.24% 1.28% 1.57%
After expense reimbursement.... 1.05% 1.06% 1.10% 1.16% 1.24% 1.04% 1.41%
Ratio of net investment income to
average net assets(4)............ 0.40% 0.73% 0.51% 0.82% 1.26% 1.21% 0.03%
Portfolio turnover rate.......... 59.61% 106.21% 118.26% 86.66% 125.28% 123.64% 59.61%
<CAPTION>
Stock Funds
-------------------------------------------------------
Growth and Income Fund
Class B
-------------------------------------------------------
July 1, 1994(2)
December 31, through
1998 1997 1996 1995 Dec. 31, 1994
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 18.80 $ 17.78 $ 15.89 $ 13.52 $ 13.04
----- ----- ----- ----- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.05 0.03 0.06 0.10 0.02
Net realized and unrealized gain
on investments................... 4.67 4.56 3.05 4.26 0.67
----- ----- ----- ----- ------
Total from investment
operations....................... 4.72 4.59 3.11 4.36 0.69
----- ----- ----- ----- ------
LESS DISTRIBUTIONS:
From net investment income....... (0.04) (0.03) (0.07) (0.12) (0.06)
From net capital gains........... (1.49) (3.53) (1.15) (1.87) (0.12)
In excess of realized gains...... 0.00 (0.01) 0.00 0.00 (0.03)
Tax return of capital
distribution..................... 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- ------
Total distributions.............. (1.53) (3.57) (1.22) (1.99) (0.21)
----- ----- ----- ----- ------
Net asset value, end of period.... $ 21.99 $ 18.80 $ 17.78 $ 15.89 $ 13.52
----- ----- ----- ----- ------
----- ----- ----- ----- ------
Total return(3)................... 25.14% 25.82% 19.60% 32.32% 5.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $20,951 $18,227 $12,427 $ 4,292 $ 1,460
Ratio of expenses to average net
assets:(4)
Before expense reimbursement... 1.61% 1.69% 1.83% 2.39% 3.25%
After expense reimbursement.... 1.56% 1.49% 1.66% 1.75% 1.66%
Ratio of net investment income to
average net assets(4)............ 0.24% 0.14% 0.29% 0.84% 0.71%
Portfolio turnover rate.......... 106.21% 118.26% 86.66% 125.28% 123.64%
</TABLE>
(1) Unaudited.
(2) Commencement of operations.
(3) 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.
(4) Annualized when the period presented is less than one year.
The accompanying notes are an integral part of these financial statements.
44
<PAGE> 46
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
Strategic Growth Fund
Class A Class B
----------------------------------------------------------------------------------------------------------------------------
July 1, 1994(2)
June 30, December 31, June 30, December 31, through
1999(1) 1998 1997 1996 1995 1994 1999(1) 1998 1997 1996 1995 Dec. 31, 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 17.11 $ 16.36 $ 14.01 $ 12.69 $ 10.00 $ 10.14 $ 16.91 $ 16.22 $ 13.92 $ 12.63 $ 9.98 $ 9.92
----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ---- -----
0.02 0.09 0.11 0.13 0.10 0.11 (0.03) 0.01 0.05 0.07 0.03 (0.05)
1.73 1.86 3.65 2.88 2.82 (0.14) 1.72 1.79 3.60 2.85 2.82 0.21
----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ---- -----
1.75 1.95 3.76 3.01 2.92 (0.03) 1.69 1.80 3.65 2.92 2.85 0.16
----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ---- -----
0.00 (0.09) (0.11) (0.13) (0.09) (0.11) 0.00 0.00 (0.05) (0.07) (0.06) (0.10)
0.00 (1.00) (1.30) (1.56) (0.14) 0.00 0.00 (1.00) (1.30) (1.56) (0.14) 0.00
0.00 (0.11) 0.00 0.00 0.00 0.00 0.00 (0.11) 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 0.00
----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ---- -----
0.00 (1.20) (1.41) (1.69) (0.23) (0.11) 0.00 (1.11) (1.35) (1.63) (0.20) (0.10)
----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ---- -----
$ 18.86 $ 17.11 $ 16.36 $ 14.01 $ 12.69 $ 10.00 $ 18.60 $ 16.91 $ 16.22 $ 13.92 $12.63 $ 9.98
----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ---- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ---- -----
10.23% 11.22% 26.89% 23.72% 29.14% -0.28% 9.99% 10.39% 26.23% 23.13% 28.58% 1.57%
$74,485 $73,626 $54,310 $22,253 $12,223 $ 6,471 $12,608 $12,627 $12,344 $ 5,689 $2,332 $ 327
1.18% 1.16% 1.21% 1.31% 1.65% 1.74% 1.72% 1.71% 1.82% 2.12% 3.25% 3.25%
1.18% 1.16% 1.21% 1.31% 1.62% 1.17% 1.66% 1.66% 1.71% 1.81% 2.14% 1.80%
0.19% 0.52% 0.86% 1.08% 1.03% 1.25% -0.29% 0.03% 0.37% 0.59% 0.56% 0.82%
46.92% 89.69% 85.55% 119.87% 73.32% 54.01% 46.92% 89.69% 85.55% 119.87% 73.32% 54.01%
</TABLE>
45
<PAGE> 47
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
---------------------------------------------------------------
California Municipal Bond Fund
Class A
---------------------------------------------------------------
June 30, December 31,
1999(1) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 11.49 $ 11.44 $ 11.15 $ 11.26 $ 10.31 $ 11.56
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.26 0.51 0.53 0.53 0.54 0.59
Net realized and unrealized gain
on investments................... (0.42) 0.16 0.33 (0.11) 0.95 (1.25)
------ ------ ------ ------ ------ ------
Total from investment
operations....................... (0.16) 0.67 0.86 0.42 1.49 (0.66)
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment income....... (0.26) (0.51) (0.53) (0.53) (0.54) (0.59)
From net capital gains........... 0.00 (0.11) (0.04) 0.00 0.00 0.00
In excess of realized gains...... 0.00 0.00 0.00 0.00 0.00 0.00
Tax return of capital
distribution..................... 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------ ------
Total distributions.............. (0.26) (0.62) (0.57) (0.53) (0.54) (0.59)
------ ------ ------ ------ ------ ------
Net asset value, end of period.... $ 11.07 $ 11.49 $ 11.44 $ 11.15 $ 11.26 $ 10.31
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
Total return(3)................... -1.46% 5.94% 7.97% 3.90% 14.76% -5.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $211,316 $211,938 $195,292 $177,593 $184,283 $171,768
Ratio of expenses to average net
assets:(4)
Before expense reimbursement... 0.94% 0.94% 0.95% 0.96% 0.96% 0.97%
After expense reimbursement.... 0.84% 0.94% 0.95% 0.96% 0.93% 0.57%
Ratio of net investment income to
average net assets(4)............ 4.54% 4.43% 4.76% 4.82% 4.98% 5.43%
Portfolio turnover rate.......... 5.54% 14.95% 15.95% 29.28% 25.90% 30.32%
<CAPTION>
-------------------------------------------------------------
Class B
-------------------------------------------------------------
July 1, 1994(2)
June 30, December 31, through
1999(1) 1998 1997 1996 1995 Dec. 31, 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $11.50 $11.45 $11.15 $11.26 $10.32 $10.74
----- ---- ---- ---- ---- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.22 0.45 0.48 0.48 0.48 0.25
Net realized and unrealized gain
on investments................... (0.43) 0.16 0.34 (0.11) 0.94 (0.42)
----- ---- ---- ---- ---- -----
Total from investment
operations....................... (0.21) 0.61 0.82 0.37 1.42 (0.17)
----- ---- ---- ---- ---- -----
LESS DISTRIBUTIONS:
From net investment income....... (0.22) (0.45) (0.48) (0.48) (0.48) (0.25)
From net capital gains........... 0.00 (0.11) (0.04) 0.00 0.00 0.00
In excess of realized gains...... 0.00 0.00 0.00 0.00 0.00 0.00
Tax return of capital
distribution..................... 0.00 0.00 0.00 0.00 0.00 0.00
----- ---- ---- ---- ---- -----
Total distributions.............. (0.22) (0.56) (0.52) (0.48) (0.48) (0.25)
----- ---- ---- ---- ---- -----
Net asset value, end of period.... $11.07 $11.50 $11.45 $11.15 $11.26 $10.32
----- ---- ---- ---- ---- -----
----- ---- ---- ---- ---- -----
Total return(3)................... -1.83% 5.41% 7.53% 3.39% 14.05% -1.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $8,039 $7,983 $8,025 $5,360 $3,162 $1,416
Ratio of expenses to average net
assets:(4)
Before expense reimbursement... 1.61% 1.63% 1.70% 1.83% 2.24% 3.25%
After expense reimbursement.... 1.43% 1.44% 1.45% 1.46% 1.46% 1.28%
Ratio of net investment income to
average net assets(4)............ 3.96% 3.94% 4.24% 4.33% 4.42% 4.91%
Portfolio turnover rate.......... 5.54% 14.95% 15.95% 29.28% 25.90% 30.32%
</TABLE>
(1) Unaudited.
(2) Commencement of operations.
(3) 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.
(4) Annualized when the period presented is less than one year.
The accompanying notes are an integral part of these financial statements.
46
<PAGE> 48
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
National Municipal Bond Fund
Class A Class B
-----------------------------------------------------------------------------------------------------------------------------
July 1, 1994(2)
June 30, December 31, June 30, December 31, through
1999(1) 1998 1997 1996 1995 1994 1999(1) 1998 1997 1996 1995 Dec. 31, 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 11.56 $ 11.54 $ 11.21 $ 11.39 $ 10.41 $ 11.61 $11.56 $11.55 $11.21 $11.39 $10.41 $10.76
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- -----
0.26 0.51 0.53 0.52 0.53 0.58 0.23 0.46 0.48 0.46 0.47 0.24
(0.48) 0.13 0.40 (0.12) 0.98 (1.20) (0.47) 0.12 0.41 (0.12) 0.98 (0.35)
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- -----
(0.22) 0.64 0.93 0.40 1.51 (0.62) (0.24) 0.58 0.89 0.34 1.45 (0.11)
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- -----
(0.26) (0.51) (0.53) (0.52) (0.53) (0.58) (0.23) (0.46) (0.48) (0.46) (0.47) (0.24)
0.00 (0.11) (0.07) (0.06) 0.00 0.00 0.00 (0.11) (0.07) (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 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- -----
(0.26) (0.62) (0.60) (0.58) (0.53) (0.58) (0.23) (0.57) (0.55) (0.52) (0.47) (0.24)
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- -----
$ 11.08 $ 11.56 $ 11.54 $ 11.21 $ 11.39 $ 10.41 $11.09 $11.56 $11.55 $11.21 $11.39 $10.41
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- -----
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- -----
-1.99% 5.70% 8.56% 3.58% 14.76% -5.41% -1.99% 5.08% 8.11% 3.07% 14.16% -0.99%
$60,595 $62,558 $58,740 $49,597 $53,387 $50,037 $3,027 $3,244 $3,162 $1,952 $1,051 $ 342
0.98% 0.99% 1.00% 1.01% 1.05% 1.06% 1.95% 1.96% 2.13% 2.29% 3.25% 3.25%
0.96% 0.99% 1.00% 1.01% 0.91% 0.57% 1.47% 1.49% 1.50% 1.51% 1.44% 1.28%
4.50% 4.44% 4.72% 4.63% 4.79% 5.35% 3.99% 3.93% 4.21% 4.14% 4.22% 4.72%
5.50% 21.89% 21.80% 44.76% 53.43% 37.52% 5.50% 21.89% 21.80% 44.76% 53.43% 37.52%
</TABLE>
47
<PAGE> 49
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
-----------------------------------------------------------------------------------------------
Strategic Income Fund
Class A Class B
-----------------------------------------------------------------------------------------------
May 20, 1996(1) May 20, 1996(2)
June 30, December 31, through June 30, December 31, through
1999(1) 1998 1997 Dec. 31, 1996 1999(1) 1998 1997 Dec. 31, 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period......................... $ 4.98 $ 5.16 $ 5.16 $ 5.00 $ 4.97 $ 5.15 $ 5.15 $ 5.00
------ ----- ----- --------- ----- ---- ---- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss)... 0.20 0.38 0.42 0.25 0.18 0.34 0.38 0.23
Net realized and unrealized
gain on investments............ (0.20) (0.15) 0.06 0.18 (0.20) (0.15) 0.06 0.17
------ ----- ----- --------- ----- ---- ---- --------
Total from investment
operations..................... (0.00) 0.23 0.48 0.43 (0.02) 0.19 0.44 0.40
------ ----- ----- --------- ----- ---- ---- --------
LESS DISTRIBUTIONS:
From net investment income..... (0.20) (0.38) (0.42) (0.25) (0.18) (0.34) (0.38) (0.23)
From net capital gains......... 0.00 (0.00) (0.05) (0.01) 0.00 (0.00) (0.05) (0.01)
In excess of realized gains.... 0.00 (0.00) (0.01) (0.01) 0.00 (0.00) (0.01) (0.01)
Tax return of capital
distribution................... 0.00 (0.03) 0.00 0.00 0.00 (0.03) 0.00 0.00
------ ----- ----- --------- ----- ---- ---- --------
Total distributions............ (0.20) (0.41) (0.48) (0.27) (0.18) (0.37) (0.44) (0.25)
------ ----- ----- --------- ----- ---- ---- --------
Net asset value, end of
period......................... $ 4.78 $ 4.98 $ 5.16 $ 5.16 $ 4.77 $ 4.97 $ 5.15 $ 5.15
------ ----- ----- --------- ----- ---- ---- --------
------ ----- ----- --------- ----- ---- ---- --------
Total return(3)................. -0.10% 4.03% 9.57% 8.89% -0.48% 3.25% 8.77% 8.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)........................ $64,789 $66,375 $37,831 $17,863 $5,911 $7,205 $8,048 $ 2,964
Ratio of expenses to average
net assets:(4)
Before expense
reimbursement................ 1.38% 1.36% 1.51% 1.85% 2.03% 2.01% 2.27% 3.25%
After expense
reimbursement................ 1.05% 0.80% 0.41% 0.02% 1.80% 1.53% 1.16% 0.74%
Ratio of net investment income
to average net assets(4)....... 8.06% 7.45% 8.04% 8.19% 7.29% 6.71% 7.29% 7.47%
Portfolio turnover rate........ 56.57% 172.43% 221.42% 187.15% 56.57% 172.43% 221.42% 187.15%
</TABLE>
(1) Unaudited.
(2) Commencement of operations.
(3) 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.
(4) Annualized when the period presented is less than one year.
The accompanying notes are an integral part of these financial statements.
48
<PAGE> 50
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
U.S. Government and Mortgage Securities Fund
Class A Class B
--------------------------------------------------------------------------------------------------------------
June 30, December 31, June 30, December 31,
1999(1) 1998 1997 1996 1995 1994 1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10.17 $ 10.20 $ 10.07 $ 10.30 $ 9.55 $ 10.60 $10.17 $10.20 $10.07 $10.30 $ 9.55
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ----
0.30 0.63 0.67 0.67 0.69 0.70 0.27 0.58 0.62 0.62 0.64
(0.31) (0.03) 0.13 (0.23) 0.75 (1.05) (0.31) (0.03) 0.13 (0.23) 0.75
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ----
(0.01) 0.60 0.80 0.44 1.44 (0.35) (0.04) 0.55 0.75 0.39 1.39
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ----
(0.30) (0.63) (0.67) (0.67) (0.69) (0.70) (0.27) (0.58) (0.62) (0.62) (0.64)
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 0.00 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 0.00 0.00 0.00
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ----
(0.30) (0.63) (0.67) (0.67) (0.69) (0.70) (0.27) (0.58) (0.62) (0.62) (0.64)
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ----
$ 9.86 $ 10.17 $ 10.20 $ 10.07 $ 10.30 $ 9.55 $ 9.86 $10.17 $10.20 $10.07 $10.30
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ----
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ----
-0.14% 6.06% 8.25% 4.50% 15.50% -3.30% -0.37% 5.53% 7.72% 3.98% 14.93%
$221,129 $216,344 $202,573 $224,301 $255,614 $245,715 $6,335 $6,804 $7,228 $5,888 $3,799
1.02% 1.02% 1.03% 1.03% 1.04% 1.05% 1.72% 1.72% 1.76% 1.82% 2.27%
1.02% 1.02% 1.03% 1.03% 1.02% 0.80% 1.51% 1.53% 1.53% 1.53% 1.53%
5.97% 6.20% 6.67% 6.67% 6.90% 7.05% 5.48% 5.70% 6.16% 6.19% 6.34%
12.61% 22.70% 3.73% 27.45% 48.39% 16.33% 12.61% 22.70% 3.73% 27.45% 48.39%
<CAPTION>
---------------
Class B
---------------
July 1, 1994(3)
through
Dec. 31, 1994
<S> <C> <C>
$ 9.80
-----
0.32
(0.25)
-----
0.07
-----
(0.32)
0.00
0.00
0.00
-----
(0.32)
-----
$ 9.55
-----
-----
0.69%
$ 1,451
3.25%
1.43%
6.82%
16.33%
</TABLE>
49
<PAGE> 51
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds
----------------------------------------------------------
California Municipal Money Fund
Class A
----------------------------------------------------------
June 30, December 31,
1999(1) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ----- ----- ----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)........ 0.012 0.026 0.029 0.028 0.032 0.024
Net realized and unrealized gain on
investments......................... 0.000 0.000 0.000 0.000 0.000 0.000
------- ----- ----- ----- ----- -----
Total from investment operations.... 0.012 0.026 0.029 0.028 0.032 0.024
------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS:
From net investment income.......... (0.012) (0.026) (0.029) (0.028) (0.032) (0.024)
From net capital gains.............. 0.000 0.000 0.000 0.000 0.000 0.000
In excess of realized gains......... 0.000 0.000 0.000 0.000 0.000 0.000
Tax return of capital
distribution........................ 0.000 0.000 0.000 0.000 0.000 0.000
------- ----- ----- ----- ----- -----
Total distributions................. (0.012) (0.026) (0.029) (0.028) (0.032) (0.024)
------- ----- ----- ----- ----- -----
Net asset value, end of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ----- ----- ----- ----- -----
------- ----- ----- ----- ----- -----
Total return(3)...................... 1.16% 2.67% 2.97% 2.82% 3.22% 2.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)... $38,202 $40,483 $44,751 $37,355 $39,439 $42,979
Ratio of expenses to average net
assets:(4)
Before expense reimbursement...... 0.96% 0.99% 0.97% 1.00% 1.00% 1.00%
After expense reimbursement....... 0.63% 0.67% 0.64% 0.63% 0.67% 0.46%
Ratio of net investment income to
average net assets(4)............... 2.33% 2.74% 2.94% 2.78% 3.18% 2.44%
Portfolio turnover rate............. -- -- -- -- -- --
<CAPTION>
Money Funds
----------------------------------------------------------
National Municipal Money Fund
Class A
----------------------------------------------------------
June 30, December 31,
1999(1) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ----- ----- ---- ---- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)........ 0.013 0.029 0.030 0.029 0.032 0.026
Net realized and unrealized gain on
investments......................... 0.000 0.000 0.000 0.000 0.000 0.000
------- ----- ----- ---- ---- -----
Total from investment operations.... 0.013 0.029 0.030 0.029 0.032 0.026
------- ----- ----- ---- ---- -----
LESS DISTRIBUTIONS:
From net investment income.......... (0.013) (0.029) (0.030) (0.029) (0.032) (0.026)
From net capital gains.............. 0.000 0.000 0.000 0.000 0.000 0.000
In excess of realized gains......... 0.000 0.000 0.000 0.000 0.000 0.000
Tax return of capital
distribution........................ 0.000 0.000 0.000 0.000 0.000 0.000
------- ----- ----- ---- ---- -----
Total distributions................. (0.013) (0.029) (0.030) (0.029) (0.032) (0.026)
------- ----- ----- ---- ---- -----
Net asset value, end of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ----- ----- ---- ----- -----
------- ----- ----- ---- ----- -----
Total return(3)...................... 1.25% 2.95% 3.09% 2.96% 3.26% 2.60%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)... $ 5,173 $ 5,464 $ 6,579 $ 7,514 $ 7,860 $10,110
Ratio of expenses to average net
assets:(4)
Before expense reimbursement...... 1.46% 1.35% 1.31% 1.32% 1.29% 1.25%
After expense reimbursement....... 0.70% 0.67% 0.68% 0.68% 0.75% 0.49%
Ratio of net investment income to
average net assets(4)............... 2.49% 2.91% 3.04% 2.92% 3.21% 2.57%
Portfolio turnover rate............. -- -- -- -- -- --
</TABLE>
(1) Unaudited.
(2) Commencement of operations.
(3) 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.
(4) Annualized when the period presented is less than one year.
The accompanying notes are an integral part of these financial statements.
50
<PAGE> 52
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Money Fund
Class A Class B
- ------------------------------------------------------------------------------------------------------------------------------
July 1, 1994(2)
June 30, December 31, June 30, December 31, through
1999(1) 1998 1997 1996 1995 1994 1999(1) 1998 1997 1996 1995 Dec. 31, 1994
<S> <C> <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 $ 1.00 $ 1.00
----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ------
0.019 0.045 0.046 0.046 0.050 0.036 0.015 0.038 0.039 0.040 0.044 0.018
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
----- ----- ----- ----- ----- ---- ------ ----- ----- ----- ----- ------
0.019 0.045 0.046 0.046 0.050 0.036 0.015 0.038 0.039 0.040 0.044 0.018
----- ----- ----- ----- ----- ---- ------ ----- ----- ----- ----- ------
(0.019) (0.045) (0.046) (0.046) (0.050) (0.036) (0.015) (0.038) (0.039) (0.040) (0.044) (0.018)
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 0.000 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
----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ------
(0.019) (0.045) (0.046) (0.046) (0.050) (0.036) (0.015) (0.038) (0.039) (0.040) (0.044) (0.018)
----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ------
----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ------
1.89% 4.60% 4.73% 4.74% 5.13% 3.67% 1.52% 3.81% 3.95% 4.07% 4.45% 3.53%
$53,893 $58,186 $60,033 $65,479 $51,385 $33,448 $ 552 $ 542 $ 165 $ 120 $ 113 $ 28
1.04% 1.02% 1.02% 1.02% 1.05% 1.08% 4.29% 6.65% 3.25% 3.25% 3.25% 3.25%
0.68% 0.60% 0.62% 0.52% 0.64% 0.46% 1.43% 1.34% 1.37% 1.18% 1.24% 1.13%
3.79% 4.49% 4.63% 4.63% 4.99% 3.75% 3.04% 3.61% 3.90% 3.95% 4.34% 3.71%
-- -- -- -- -- -- -- -- -- -- -- --
</TABLE>
51
<PAGE> 53
Notes to Financial Statements June 30, 1999 (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 twelve portfolios. The Company
currently consists of the Atlas Balanced Fund, Atlas Emerging Growth Fund, Atlas
Global Growth Fund, Atlas Growth and Income Fund, Atlas Strategic Growth Fund,
Atlas California Municipal Bond Fund, Atlas National Municipal Bond Fund, Atlas
Strategic Income Fund, Atlas U.S. Government and Mortgage Securities Fund, Atlas
California Municipal Money Fund, Atlas National Municipal Money Fund, and the
Atlas U.S. Treasury Money Fund (a "Fund", or collectively, the "Funds"). All
Funds are diversified with the exception of the Atlas California Municipal Money
Fund and the Atlas California Municipal Bond Fund which are non-diversified. The
Funds offer two classes of shares, Class A and Class B, with the exception of
Atlas California Municipal Money Fund and Atlas National Municipal Money Fund
which offer only Class A shares. Class A shares are offered at net asset value
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.
The Stock Funds seek a varying mix of long-term capital growth and current
income for investors who can accept price fluctuations.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
a. Investment Valuation: Bond Fund securities are valued by pricing
services. Valuations of portfolio securities furnished by the pricing
services are based upon a computerized matrix system and/or appraisals,
in each case, in reliance upon information concerning market transactions
and quotations from recognized securities dealers. Securities for which
quotations are readily available are valued based upon those quotations.
Securities for which quotations are not readily available (which
constitute the majority of the Bond Funds' securities) are valued at
their fair value based upon the information supplied by the pricing
services. The methods used by the pricing services and the quality of
valuations so established are reviewed by the Company's officers under
the general supervision of the Directors of the Company. There are a
number of pricing services available and the Directors, on the basis of
ongoing evaluation of these services, may use other pricing services or
discontinue the use of any pricing service in whole or in part.
Money Fund securities have a remaining maturity of 13 months or less and
their entire portfolios have a weighted average maturity of 90 days or
less. As such, all of the Money Fund securities are valued at amortized
cost, which approximates value. If a Money Fund portfolio had a remaining
weighted average maturity of greater than 90 days, the portfolios would
be stated at value based on recorded closing sales on a national
securities exchange or, in the absence of a recorded sale, at the mean
between the bid and asked prices.
Stock Fund securities listed or traded on an exchange are valued at the
last sales price on the exchange, or lacking any sales on a particular
day, the security is valued at the mean between the closing bid and asked
prices on that day. Each security traded in the over-the-counter market
(but not including securities reported on the NASDAQ National Market
System) is valued at the mean between the last bid and asked prices. Each
security reported on the NASDAQ National Market System is valued at the
last sales price on the valuation date.
b. Security Credit Risk: The Atlas Strategic Income Fund may invest any
amount of its assets in higher yielding, lower-rated debt securities,
including defaulted securities, which may be subject to a greater degree
of credit risk, greater market fluctuations and risk of loss of income
and principal than lower yielding, investment grade 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. As of June 30, 1999, Atlas Strategic Income
52
<PAGE> 54
- --------------------------------------------------------------------------------
Fund holds securities in default with an aggregate market value of
$283,808, representing less than 0.40% of the Fund's net assets.
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 and the Atlas
Global Growth Fund for the period ended June 30, 1999 are net of foreign
withholding taxes of $1,149 and $31,455, 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 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, 1999 amounted to $2,361,922
for Atlas Strategic Income Fund.
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,
53
<PAGE> 55
Notes to Financial Statements June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
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 and Mortgage
Securities Fund and the Atlas Strategic Income Fund may engage in dollar
reverse repurchase agreements ("dollar rolls"), which entail the
simultaneous sale of securities with an agreement to buy back
substantially similar securities at a future date at a price less than
the price at which the securities were originally sold. These
transactions are accounted for as financing transactions as opposed to
sales and purchases. The differential in price between the sale price
and repurchase price is recorded as deferred income and recognized
between the settlement dates of the sale and repurchase. Pursuant
to regulation, the funds set aside sufficient investment securities
as collateral to meet these commitments. Dollar roll transactions
involve risk that the market value of the securities sold by the
Funds may decline below the repurchase price of those securities.
n. Foreign Currency Translation: Amounts denominated in or expected to
settle in foreign currencies (FC) are translated into United States
dollars at rates reported by selected pricing services on the following
basis: Market value of investment, other assets and liabilities -- at the
closing rate of exchange at the balance sheet date; purchases and sales
of investment securities, income and expenses -- at the rate of exchange
prevailing on the respective dates such transactions are recorded.
The Funds do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held.
Such fluctuations are included with the net realized and unrealized gain
or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of FC's, currency gains or
losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest
and foreign withholding taxes recorded on the Funds' books, and the U.S.
dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at
fiscal year end, resulting from changes in the exchange rates.
54
<PAGE> 56
- --------------------------------------------------------------------------------
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 as follows: Atlas Strategic Income Fund -- $100,831 in 1998
resulting from the non-deductibility under Internal Revenue Service
regulations of certain wash sales and $4,389 in 1998 resulting from a
difference in the required distribution amount determined under excise
tax rules versus that determined under generally accepted accounting
principles; and Atlas Strategic Growth Fund -- $536,779 in 1998 resulting
from a difference in the required distribution amount determined under
excise tax rules versus that determined under generally accepted
accounting principles: and Atlas Global Growth Fund -- $62,831 in 1998
resulting from the non-deductibility under Internal Revenue Service
regulations of certain wash sales and $480,272 in 1998 resulting from a
difference in the required distribution amount determined under excise
tax rules versus that determined under generally accepted accounting
principles.
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. UNREALIZED APPRECIATION/DEPRECIATION -- TAX BASIS
As of June 30, 1999, each Fund had the following unrealized appreciation
(depreciation) for federal income tax purposes (in 000's):
<TABLE>
<CAPTION>
California
Balanced Emerging Global Growth Growth and Strategic Growth Municipal
Fund Growth Fund Fund Income Fund Fund Bond Fund
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Unrealized appreciation.............. $14,483 $ 2,620 $12,152 $ 86,328 $14,973 $ 9,348
Unrealized depreciation.............. $(3,152) $ (901) $(2,619) $ (2,974) $(2,866) $ (1,634)
----------------------------------------------------------------------------------------
Net unrealized appreciation.......... $11,331 $ 1,719 $ 9,533 $ 83,354 $12,107 $ 7,714
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
Cost of securities for federal
income tax purposes.................. $88,266 $11,981 $38,556 $269,774 $75,238 $210,316
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
National U.S. Government California National
Municipal Strategic and Mortgage Municipal Municipal U.S. Treasury
Bond Fund Income Fund Securities Fund Money Fund Money Fund Money Fund
----------------------------------------------------------------------------------------
Unrealized appreciation.............. $ 2,503 $ 918 $ 1,762 $ 0 $ 0 $ 0
Unrealized depreciation.............. $ (665) $(5,059) $ (4,577) $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation)....................... $ 1,838 $(4,141) $ (2,815) $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
Cost of securities for federal
income tax purposes.................. $61,023 $77,063 $231,539 $36,704 $5,165 $53,966
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
</TABLE>
3. SHARE TRANSACTIONS
The following is a summary of share transactions for the periods ended June
30, 1999 and December 31, 1998 (in 000's):
<TABLE>
<CAPTION>
Balanced Fund Emerging Growth Fund Global Growth Fund
Class A Class B Class A Class B Class A Class B
--------------------------------------------------------------------------------------------------------
1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold... 1,026 3,283 11 35 94 718 6 9 331 926 9 11
Issued
in
reinvestment
of
dividends... 93 322 8 35 0 0 0 0 0 31 0 5
Redeemed... (1,101) (992) (46) (44) (325) (272) (43) (30) (297) (768) (34) (49)
--------------------------------------------------------------------------------------------------------
Net
increase
(decrease)... 18 2,613 (27) 26 (231) 446 (37) (21) 34 189 (25) (33)
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
</TABLE>
55
<PAGE> 57
Notes to Financial Statements June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
California Municipal
Growth and Income Fund Strategic Growth Fund Bond Fund
Class A Class B Class A Class B Class A Class B
-------------------------------------------------------------------------------------------------
1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold............... 2,227 2,904 49 52 358 1,547 6 39 1,637 2,694 41 19
Issued in
reinvestment
of dividends....... 22 766 0 61 0 255 0 41 296 683 10 25
Redeemed........... (793) (1,623) (48) (130) (713) (817) (75) (94) (1,287) (2,001) (19) (51)
-------------------------------------------------------------------------------------------------
Net increase
(decrease)......... 1,456 2,047 1 (17) (355) 985 (69) (14) 646 1,376 32 (7)
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
National Municipal U.S. Government and
Bond Fund Strategic Income Fund Mortgage Securities Fund
Class A Class B Class A Class B Class A Class B
-------------------------------------------------------------------------------------------------
1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold............... 358 731 6 14 2,673 9,118 19 74 3,634 4,755 15 37
Issued in
reinvestment
of dividends....... 93 221 5 12 270 461 26 56 428 792 13 27
Redeemed........... (395) (628) (18) (19) (2,727) (3,573) (257) (242) (2,908) (4,134) (54) (104)
-------------------------------------------------------------------------------------------------
Net increase
(decrease)......... 56 324 (7) 7 216 6,006 (212) (112) 1,154 1,413 (26) (40)
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
California Municipal National Municipal
Money Fund Money Fund U.S. Treasury Money Fund
Class A Class A Class A Class B
----------------------------------------------------------------------------
1999 1998 1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold............... 9,230 31,055 1,916 2,701 20,988 50,707 318 800
Issued in
reinvestment
of dividends....... 436 1,091 63 154 1,000 2,506 9 11
Redeemed........... (11,948) (36,413) (2,271) (3,969) (26,281) (55,056) (316) (434)
------------------------------------------------------------------------------
Net increase
(decrease)... (2,282) (4,267) (292) (1,114) (4,293) (1,843) 11 377
------------------------------------------------------------------------------
-----------------------------------------------------------------------------
</TABLE>
4. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding short-term securities)
for the six months ended June 30, 1999 were as follows (in 000's):
<TABLE>
<CAPTION>
Growth and California
Balanced Emerging Global Income Strategic Municipal
Fund Growth Fund Growth Fund Fund Growth Fund Bond Fund
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases...................... $20,449 $8,858 $24,871 $188,437 $32,886 $21,036
Sales.......................... $5,499 $10,851 $25,187 $163,670 $41,828 $11,972
-------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
National U.S. Government California National
Municipal Strategic and Mortgage Municipal Municipal U.S. Treasury
Bond Fund Income Fund Securities Fund Money Fund Money Fund Money Fund
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases...................... $4,291 $43,784 $45,563 $0 $0 $0
Sales.......................... $3,525 $39,897 $28,193 $0 $0 $0
------------------------------------------------------------------------------
</TABLE>
At June 30, 1999 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 2005 2006
<S> <C> <C> <C> <C> <C> <C>
U.S. Treasury Money Fund............................... $ -- $ -- $ -- $ 10 $ 5 $ 7
U.S. Government and Mortgage Securities Fund........... $487 $5,195 $7,507 $1,491 $280 $ 52
Emerging Growth Fund................................... $ -- $ -- $ -- $ -- $ 28 $1,274
</TABLE>
56
<PAGE> 58
- --------------------------------------------------------------------------------
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.
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Atlas Advisers, Inc. (the "Adviser") provides portfolio management services to
the U.S. Government and Mortgage Securities Fund and the U.S. Treasury Money
Fund and supervises the provision of similar services to the Atlas Municipal
Funds by Boston Safe Advisers, Inc. and to the Atlas Stock Funds and Atlas
Strategic Income Fund by OppenheimerFunds, Inc. (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 redemption of Class
B shares held less than five years of the Stock and Bond Funds and the U.S.
Treasury Money Fund. The Distributor also receives payments under separate
Distribution Plans (the "Class A Plan" and "Class B Plan") pursuant to Rule
12b-1 of the 1940 Act. Under the Class A Plan, the Company may reimburse the
Distributor up to a maximum of .25% per year of average daily Class A net assets
in each Fund, payable on a quarterly basis. Under the Class B Plan, the maximum
rate is .75% per year of average daily Class B net assets in each Fund and is
payable on a monthly basis.
Due to voluntary expense waivers in effect during the period ended June 30,
1999, 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 .67% to .75% per annum. Class A and Class B 12b-1 fees due
the Distributor were reduced in the amount of $325,553 and $10,034,
respectively. Management fees due the Adviser were reduced by $86,215. The
Adviser also absorbed $62,388 of other Fund expenses during the period. During
the six months ended June 30, 1999, the Distributor received $134,686 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 Corporation. Certain officers and directors of the Company are also
officers and/or directors of the Adviser and the Distributor.
At June 30, 1999, Golden West Financial Corporation owned 80,862 Class A
shares in the California Municipal Bond Fund, 45,162 shares in the National
Municipal Bond Fund and 116,324 shares in the Emerging Growth Fund.
6. 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 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. Treasury Money Fund has a concentration in United States Treasury
obligations.
57
<PAGE> 59
Notes to Financial Statements June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Industry and sector concentrations greater than 10% of a Fund's net assets at
June 30, 1999 are as follows:
The Balanced Fund has 27.24% in U.S. Treasury Notes and 16.79% in banks.
The Emerging Growth Fund has 14.69% in computer software and 15.31% in
consumer goods and services.
The Global Growth Fund has 18.11% in telecommunications and 12.69% in drugs
and health care.
The Growth and Income Fund has 11.19% in drugs and health care and 10.58% in
banks.
The Strategic Growth Fund has 10.27% in computer hardware.
The California Municipal Bond Fund has 17.97% in water/sewer, 11.38% in
general obligation bonds and 10.65% in airport/seaport.
The National Municipal Bond Fund has 23.82% in general obligation bonds,
13.66% in public power, 13.63% in health and 10.77% in education.
The California Municipal Money Fund has 12.29% in housing, 11.91% in community
development, 11.65% in water/sewer and 10.95% in prerefunded bonds.
The National Municipal Money Fund has 23.10% in health and 16.32% in general
obligation bonds.
7. FORWARD CONTRACTS
Open forward contracts in the Funds to purchase and sell foreign currencies as
of June 30, 1999 were as follows:
<TABLE>
<CAPTION>
Contract
Settlement Amount Valuation as Unrealized
Date (000's) of 06/30/99 Gain (Loss)
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Strategic Income Fund:
- ---------------------
Contracts to Purchase:
- --------------------
British Pound Sterling................................... 07/19/99-07/27/99 225 GBP $ 354,659 $ (5,526)
Canadian Dollar.......................................... 7/12/99 410 CAD 278,239 (2,872)
European Currency Unit................................... 07/19/99-07/22/99 572 EUR 569,592 (33,129)
Japanese Yen............................................. 08/09/99 63,000 JPY 523,510 (2,279)
Swedish Krona............................................ 07/26/99 355 SEK 41,870 (296)
Thai Baht................................................ 02/16/00-02/25/00 10,991 TLB 298,806 4,964
---------- ---------
$2,066,676 (39,138)
========== ---------
Contracts to Sell:
- ---------------
British Pound Sterling................................... 07/15/99-07/27/99 443 GBP $ 698,284 13,636
Canadian Dollar.......................................... 07/12/99 620 CAD 420,751 962
European Currency Unit................................... 07/12/99-07/19/99 1,082 EUR 941,381 36,086
Hong Kong Dollar......................................... 01/26/00-01/31/00 1,275 HKD 163,368 (3,368)
Japanese Yen............................................. 07/22/99 37,528 JPY 311,038 362
New Mexican Peso......................................... 7/1/99 3,500 MXP 371,747 (18,122)
New Zealand Dollar....................................... 08/24/99 740 NZD 391,564 14,437
Swedish Krona............................................ 07/26/99 355 SEK 41,871 72
Thai Baht................................................ 02/16/00-02/25/00 10,991 TLB 298,806 (13,840)
---------- ---------
$3,638,810 30,225
========== ---------
Net unrealized loss...................................... $ (8,913)
=========
Global Growth Fund:
- -------------------
Contracts to Purchase:
- --------------------
European Currency Unit................................... 07/01/99-08/11/99 2,405 EUR $2,103,454 $(229,716)
========== ---------
Contracts to Sell:
- ---------------
British Pound Sterling................................... 08/11/99 1,400 GBP $2,207,368 57,389
Japanese Yen............................................. 09/08/99 178,656 JPY 1,485,392 951
---------- ---------
$3,692,760 58,340
========== ---------
Net unrealized loss...................................... $(171,376)
=========
</TABLE>
58
<PAGE> 60
- --------------------------------------------------------------------------------
8. 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.
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, 1999, the Atlas Strategic Income Fund had outstanding futures
contracts to purchase debt securities as follows:
<TABLE>
<CAPTION>
Number of Unrealized
Expiration Futures Appreciation/
Date Contracts Valuation (Depreciation)
-------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Purchase:
- --------------------
U.S. Treasury Bonds......................................... 09/99 12 $1,390,875 $(17,234)
--------
Contracts to Sell:
- ---------------
U.S. Treasury Notes......................................... 09/99 7 $ 778,313 (4,539)
United Kingdom Government Bonds............................. 09/99 1 177,018 2,498
--------
(2,041)
--------
Net unrealized loss......................................... $(19,275)
========
</TABLE>
9. 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 an 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
59
<PAGE> 61
Notes to Financial Statements June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
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.
Written option transactions in the Funds for the six months ended June 30,
1999 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, 1998.................... 38,971,800 $ 6,485 0 $ 0
Options written............................................. 52,494,225 6,292 6,836,275 80,970
Options closed or expired................................... (91,466,025) (12,777) (7,370) (41,833)
Options exercised........................................... 0 0 0 0
----------- -------- --------- --------
Options outstanding at June 30, 1999........................ 0 $ 0 6,828,905 $ 39,137
=========== ======== ========= ========
</TABLE>
10. 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 or restricted
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, 1999, the value of these securities and the resulting
percentage of net assets amounted to $675,000 or 0.67% in the Atlas Balanced
Fund, $361,089 or 0.76% in the Atlas Global Growth Fund and $2,842,803 or 4.02%
in the Atlas Strategic Income Fund. 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.
60
<PAGE> 62
[ATLAS LOGO]
P.O. Box 1894
San Leandro, CA 94577
- --------------
Bulk Rate
U.S. Postage
PAID
Santa Ana, CA
Permit No. 212
- --------------
AT-799
[Recycled logo]
Printed on recycled paper
(AS36.5M89) RE1191
