<PAGE> 1
Atlas Funds
Annual Report
December 31, 1999
The Investment You Want From
The People You Trust
<PAGE> 2
Table of Contents
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman of the Board and Chief Executive
Officer................................................... 2
Atlas Fund Discussions
Stock Funds
Global Growth Fund................................ 5
Emerging Growth Fund.............................. 5
Strategic Growth Fund............................. 6
Growth and Income Fund............................ 7
Balanced Fund..................................... 8
Bond Funds
U.S. Government and Mortgage Securities Fund...... 8
Strategic Income Fund............................. 9
Municipal Bond Funds.............................. 9
Money Funds............................................ 10
Atlas Stock and Bond Fund Total Returns
Stock Funds............................................ 11
Bond Funds............................................. 11
Comparing Atlas Fund Performance to the Market.............. 12
Statements of Investments in Securities and Net Assets...... 14
Statements of Assets and Liabilities........................ 40
Statements of Operations.................................... 42
Statements of Changes in Net Assets......................... 44
Financial Highlights........................................ 48
Notes to Financial Statements............................... 58
Independent Auditors' Report................................ 67
</TABLE>
[Thumbtack 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
Chairman of the Board and Chief Executive Officer
Dear Valued Shareholder,
The U.S. economy experienced both robust growth and
low inflation during 1999. While many experts had
predicted a slowdown, the pace of activity throughout the
year consistently exceeded projections. For the fourth
straight year, the growth rate was more than 4%, and by
yearend unemployment had fallen to a 30-year low of 4.1%.
The healthy economy created strong earnings for most
U.S. companies, and the major stock market indices
climbed. While impressive growth fueled gains in stocks, a
series of interest rate hikes by the Federal Reserve had
the reverse effect on bonds.
The Stock Market:
Five Consecutive Years of Double Digit Gains
For an unprecedented fifth straight year, both the Dow
Jones Industrial Average (the Dow) and the Standard and
Poor's 500 Index (S&P 500) posted double digit growth. The
Dow was up 25.2% for the year, and the S&P 500 21.0%. Most
of the increases occurred in the fourth quarter, fueled by
remarkable gains in technology. The advance, however, was
uneven, and many blue chip stocks, impacted by concerns
about rising interest rates, experienced declines.
Many technology stocks were driven to record levels by
the economic possibilities surrounding the Internet. The
Nasdaq Composite Index, which is dominated by large
technology companies, finished the year up 85.6%, more
than double its gain in 1998. Led by Internet businesses,
even small companies staged a rebound, and the Russell
2000 Index, a measure of small-capitalization stocks, rose
21.3%.
Stock markets abroad also came back to life, as
conditions in foreign markets changed substantially from
1998, when a global collapse was feared. Japan, a laggard
for a decade, turned in a strong performance. Even
emerging countries in Asia and Latin America, which
started the year at extremely depressed levels, enjoyed
rebounding economies and posted double-digit gains. Most
markets in Europe were lethargic until late in the year
when technology and telecommunications stocks fueled
rallies in several countries.
Several Atlas stock funds delivered substantial
returns for investors. For the year, the ATLAS GLOBAL
GROWTH FUND produced a noteworthy total return of 55.85%.
Among the U.S. stock funds, ATLAS EMERGING GROWTH gained
42.68%, ATLAS STRATEGIC GROWTH 40.12%, and ATLAS GROWTH
AND INCOME 31.72%. Each of these funds significantly
outperformed its
2
<PAGE> 4
peer group average for the year. All of the Atlas Funds
are discussed in detail in the Fund Discussions on the
following pages.
The Bond Market:
A Challenging Year
In order to keep a rapidly growing economy under
control, the Federal Reserve's Open Market Committee
raised the overnight federal funds rate three times
between June and November. For the year, inflation
increased somewhat, yet remained under control at levels
well below 3%.
The bond market, reacting to fears of inflation,
suffered its second worst year in more than a quarter of a
century. The yield on the benchmark 30-year Treasury bond,
which moves in the opposite direction from its price,
began 1999 at 5.10% -- the lowest level in decades -- and
increased steadily throughout the year to end at 6.48%.
Municipal bonds, corporate bonds, and mortgage-backed
securities also saw their prices decline.
Although most bond funds posted losses for the year,
ATLAS U.S. GOVERNMENT AND MORTGAGE SECURITIES had a
positive total return of 0.39%, outperforming its peers by
a wide margin. The Wall Street Journal ranked the fund the
fifth best performer for 1999 among all U.S. Government
funds.(1)
As always, I encourage investors not to overreact to
temporary downslides in the market. Bonds continue to
offer high income and provide valuable portfolio
diversification. My advice is to focus on long-term goals.
If you have concerns about your funds or would like to
review your portfolio, please talk with your Atlas
Representative. He or she can offer you a variety of
options.
The Investments You Want From The People You Trust
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 funds come with the knowledge and expertise of a
friendly Atlas Representative. Right now is a good time to
call and take advantage of a free personalized financial
review to assess your investments and asset allocation.
As an Atlas investor, you enjoy the kind of personal
attention and professional advice that most other no load
funds simply do not provide. Just call us at
1-800-933-ATLAS (1-800-933-2852) to schedule an
appointment.
- ---------------
(1) The Wall Street Journal, Mutual Fund Scoreboard, January 7,
2000, page C20
3
<PAGE> 5
Thank you for the trust you've placed in Atlas. We
look forward to serving you for many years in the future.
Sincerely,
(SANDLER SIGNATURE)
Marion O. Sandler
Chairman of the Board and Chief Executive Officer
4
<PAGE> 6
Atlas Fund Discussions
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Global Growth Fund:
The Global Growth Fund gained 55.85% during 1999,
outdistancing the 35.97% Lipper average return for
Global Funds by a substantial margin. The fund placed
in the top 17% of its peer group for the year and the
top 14% since its inception.(2) It earned a prestigious
five-star ranking for its superior risk-adjusted
performance from Morningstar, the well-known mutual
fund rating service.(3)
The Global Growth Fund invests in stocks of
growth-oriented companies throughout the world and uses
a "global theme" approach to selecting investments.
During 1999, the themes that contributed most to the
portfolio's gains were Technology/ Telecommunications,
Health Care/Biotechnology, Corporate Restructuring, and
Emerging Consumer Markets. Technology stocks drove the
markets higher in many developed economies, such as
Northern Europe and Japan, and biotechnology holdings
were strong performers. Corporate consolidations and
restructuring had a positive impact in many European
countries, as governments began to relax rigid market
regulations and restrictive labor practices. In most
emerging markets, improving economies and increased
demand from the developed world spurred impressive
rallies. At yearend, the portfolio was invested 44% in
the U.S., 40% in Europe, 6% in emerging countries, and
6% in Japan.
Going forward, the fund manager feels that taking some
profits in the technology area may be justified after
the strong performance in 1999. He believes the
financial sector may benefit from a peak in long-term
interest rates during 2000, and that positive growth
rates worldwide will favorably impact consumer goods
companies. The fund plans to continue to emphasize
Europe, where further restructuring and improving
government policies are expected to benefit investors.
Emerging Growth Fund:
The Emerging Growth Fund returned 42.68% in 1999,
significantly outperforming the Lipper Small-Cap Fund
average of 33.35%. The fund ranked in the top third of
its peer group for the year and since its inception.(4)
It also beat the S&P 600 Small-Cap Index, which gained
11.5%, and the Russell 2000 Index, up 21.3%, by wide
margins.
- ---------------
(2) Lipper Analytical Services, Inc. is a leading resource for
performance data for the mutual fund industry. Lipper
ranked the fund 42 out of 256 Global Funds for total
return for the year ended 12/31/99 and 20 out of 143 funds
since its 4/30/96 inception.
(3) Morningstar proprietary ratings reflect historical
risk-adjusted performance as of 12/31/99 and are subject
to change. Overall ratings are calculated from 3-, 5-, and
10-year average annual returns (if applicable) with
appropriate adjustments for fees and risk. The Global
Growth Fund received 5 stars for 3 years among 1,053
international equity funds. The Growth and Income Fund and
the Strategic Growth Fund were rated 4 stars for 3 and 5
years among 3,272 and 2,047 domestic equity funds. The
U.S. Government and Mortgage Securities Fund was rated 4
stars for 3 and 5 years among 1,598 and 1,176 fixed income
funds. The top 10% of funds in each category earn 5 stars,
and the next 22.5% receive 4 stars.
(4) Lipper Analytical Services, Inc. ranked the fund 233 out
of 757 Small-Cap Funds for total return for the year ended
12/31/99 and 147 out of 488 funds since its 4/30/97
inception.
5
<PAGE> 7
Atlas Fund Discussions
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Emerging Growth Fund: (continued)
The Emerging Growth Fund invests primarily in small,
growth-oriented U.S. companies with leadership
potential in their market sectors. The fund's manager
looks for firms with strong revenue and earnings
growth, sound business models, and capable,
entrepreneurial managements.
As with large company stocks, 1999 was a year of "have
and have-nots" for small-caps, with technology
producing spectacular gains while most other stocks
performed poorly compared to market averages. The
Emerging Growth Fund experienced some weakness during
the first half of the year, as its health care holdings
suffered from concerns about Medicare reform. The fund
shifted to a somewhat more aggressive stance in the
third quarter, increasing investments in technology,
which contributed to its strong performance for the
year. At yearend, the fund was invested 55% in
technology and 24% in consumer durables, with most of
the remainder in financial, industrial, and energy
companies.
Entering 2000, the fund's manager remains very positive
toward opportunities for technology stocks, although he
will watch out for excessively high prices. The fund
favors investing in technology infrastructure
providers, and is very selective about buying the
Internet "dot-coms" themselves, many of which have yet
to turn a profit. Of particular interest are businesses
that supply communications equipment, computer
hardware, software, services and electronics. At the
same time, the manager will continue to look for
companies with strong growth potential in other market
sectors.
Strategic Growth Fund:
The Strategic Growth Fund rewarded investors with a
return of 40.12% for the year, substantially ahead of
the Lipper average for Growth Funds of 29.27%. Its
strong performance placed it in the top 21% of its peer
group.(5) Morningstar has awarded the Strategic Growth
Fund a four-star rating(3), and Business Week placed
the fund on its A-List for superior risk-adjusted
returns, ranking it in the top 7.5% of stock funds with
five-year track records.(6)
The Strategic Growth Fund invests primarily in medium
to large U.S. companies that are believed to have
superior earnings prospects and above-average
appreciation potential. During 1999, the emphasis on
growth led to more than doubling positions in
technology at midyear, and it was these holdings that
contributed the most to the fund's perform-
- ---------------
(5) Lipper Analytical Services, Inc. ranked the fund 235 out
of 1,149 Growth Funds for total return for the year ended
12/31/99.
(6) Business Week ratings are based on five-year total
returns, adjusted for downside volatility. For 1999, 121
funds received A's out of 1,613 equity funds with the
minimum five-year track record.
6
<PAGE> 8
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Strategic Growth Fund: (continued)
ance. A number of the technology stocks in the
portfolio more than doubled in market value. The fund's
investments in biotechnology also produced strong
gains. Portfolio managers largely avoided financials
and utilities, which were weak performers for the year.
At yearend, 44% of assets were invested in technology,
18% in consumer durables, 9% in industrials, and 9% in
consumer non-durables.
Looking ahead to 2000, the fund will look for
opportunities outside of technology, which is already a
substantial portion of investments. Managers will
continue to focus on companies with the potential to
produce sustainable revenue growth of 15% or more
annually.
Growth and Income Fund:
The Growth and Income Fund achieved an impressive total
return of 31.72% for the year, significantly ahead of
the 13.76% Lipper average return for Growth and Income
Funds, and placing it in the top 9% of its category.(7)
Morningstar has given the fund a four-star rating(3),
and Business Week put the fund on its A-List for
superior risk-adjusted performance.(6)
The Growth and Income Fund invests primarily in
growth-oriented and dividend-paying stocks of large,
well-known U.S. companies. It also invests in
convertible securities for current income and for
protection against market fluctuations.
During 1999, fund managers concentrated investments in
approximately 30 companies in which they had the most
confidence, with approximately 67% of assets in the top
15 stocks. The portfolio's strong performance can be
attributed to investments in technology and
communications -- including fiber optics and data
storage -- as well as biotechnology and consumer retail
stocks. The fund also held relatively light positions
in groups, such as financials and energy companies,
that lagged the market. Throughout the year, a cash
position of approximately 10% was maintained in order
to reduce the risk profile. At yearend, assets were 77%
in stocks, 9% in bonds and convertible securities, and
14% in cash.
For the year ahead, managers plan to maintain their
focus on revenue growth, which they consider to be the
best predictor of future earnings. They will continue
to search for companies that can produce sustainable
revenue growth of 15% or more and earnings growth of at
least 20%.
- ---------------
(7) Lipper Analytical Services, Inc. ranked the fund 78 out of
913 Growth and Income Funds for total return for the year
ended 12/31/99.
7
<PAGE> 9
Atlas Fund Discussions
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Balanced Fund:
The Balanced Fund experienced a loss of 5.20% for the
year. The fund was hurt by its fixed income holdings
and the fact that the conservative stocks in which it
invests were almost completely out of favor during
1999.
The Balanced Fund invests in a diversified portfolio of
dividend-paying stocks, U.S. Government and investment
grade corporate bonds, and convertible securities. The
equity selection strategy focuses on companies with
attractive prices, sustainable growth rates, and
earnings that are expected to be consistent over
various economic cycles. These stocks, often called
"value stocks" because of their strong fundamentals,
are favored by many conservative investors and are
generally less susceptible to extreme price volatility
than issues from high growth companies.
The fund's value orientation led to an above-average
emphasis on financial businesses and a below-average
commitment to technology. The focus on financials,
coupled with holdings in Treasury bonds, led to
disappointing results for 1999. The best gainers for
the year were industrial, oil, and oil services
companies. At yearend, the portfolio was invested 51%
in stocks, 35% in bonds, 11% in convertibles, and 3% in
cash. Looking forward to 2000, the fund will look for
opportunities to increase its equity position as the
prospects for value stocks improve.
U.S. Government and Mortgage Securities Fund:
Despite a very difficult year for the bond market, the
U.S. Government and Mortgage Securities Fund had a
positive total return of 0.39%, significantly better
than the Lipper average return for its peer group of
-3.02%, and ranking the fund in the top 6% of all U.S.
Government Funds for the year.(8) The Wall Street
Journal ranked the fund the fifth best performer among
U.S. Government funds for 1999(1), and Morningstar has
awarded it four stars.(3)
The U.S. Government and Mortgage Securities Fund
invests in mortgaged-backed securities with the highest
quality rating (AAA). The fund is managed to produce
high current income for shareholders, and it has
consistently produced outstanding yields, beating 85%
of its peers in every single month for the past five
years.(9) The fund ended the year with a yield of
6.39%, its highest level in almost three years.
Entering 2000, many economists anticipate that the Fed
may increase interest rates further as it strives to
engineer a soft landing for the economy. Bond fund
prices already reflect
- ---------------
(8) Lipper Analytical Services, Inc. ranked the fund 9 out of
178 General U.S. Government Funds for total return for the
year ended 12/31/99 and 39 out of 117 funds for five
years.
(9) Lipper Mutual Fund Yield Survey
8
<PAGE> 10
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U.S. Government and Mortgage Securities Fund: (continued)
the expectation of future increases and may represent
good value for long-term, income-oriented investors.
Strategic Income Fund:
The Strategic Income Fund also coped well with the
falling bond market and ended the year in positive
territory with a total return of 1.92%. The fund ranks
in the top third of its peer group for total return
since its inception in 1996.(10)
The Strategic Income Fund invests in U.S. Government
securities, foreign fixed income debt, and high-yield,
lower-rated U.S. corporate bonds (junk bonds). It
varies the amount in each sector in order to take
advantage of changing market conditions. At yearend,
the yield was a very attractive 8.74%.
The fund's diversified approach allowed it to do much
better than the bond market as a whole in 1999, and its
positions in emerging markets aided its performance.
For the year, U.S. Treasuries and international bonds
of developed countries ended in negative territory.
Emerging country debt snapped back sharply from the
lows in 1998 and gained more than 20%. High-yield
corporates were up slightly. The fund ended the year
with 30% of assets in U.S. Government securities, 26%
in foreign bonds, 36% in high-yield U.S. corporates,
and 8% in cash.
The fund's managers believe that global growth will
accelerate in the year ahead, and that emerging market
bonds and high-yield corporates will be the biggest
beneficiaries. As worldwide growth rates increase and
more investments are attracted abroad, they expect the
dollar to weaken and foreign bond prices to appreciate,
creating potential gains for shareholders.
Municipal Bond Funds:
The rising interest rate environment produced negative
returns for most municipal bonds. The California
Municipal Bond Fund and the National Municipal Bond
Fund had total returns of -4.48% and -4.86%
respectively.
Both of these funds invest in investment grade (AAA,
AA, A, and BBB) intermediate and long-term municipal
bonds with a goal of producing high after-tax income
for shareholders. Income from both funds is exempt from
federal income tax, and the California Municipal Bond
Fund is also free from state income tax.
- ---------------
(10) Lipper Analytical Services, Inc. ranked the fund 62 out
of 111 Multi-Sector Income Funds for total return for the
year ended 12/31/99 and 18 out of 63 funds since
inception of Lipper performance tracking on 5/31/96.
9
<PAGE> 11
Atlas Fund Discussions
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Municipal Bond Funds: (continued)
The Bond Buyer 20-Year Index, a measure of interest
rates for municipal bonds, started the year with a
yield of 5.00% and ended at 6.00%, increasing a full
percentage point and sending bond prices falling. Fund
managers for the Atlas municipal bond funds responded
to the changing rate environment by extending weighted
average maturities of the funds and by increasing
slightly the amount of lower credit quality bonds in
order to improve the funds' yields. The California
Municipal Bond Fund continues to hold a very high
quality portfolio, with 82% of assets in AAA and
AA-rated securities. For the National Municipal Bond
Fund, 68% was invested in the two highest grades.(11)
On December 31, the 30-day yields for the funds were
4.54% and 4.66% respectively, for maximum taxable
equivalent yields of 8.29% and 7.72%.
Fund managers believe the municipal market will improve
in 2000. High yields and tax benefits are expected to
make municipal bonds very attractive compared to
taxable fixed income securities, increasing demand for
municipals as income-oriented investors recognize the
after-tax advantages.
Money Funds:
The Atlas money funds continued to provide investors
with attractive yields, after-tax advantages, and money
market stability.
For 1999, the U.S. Treasury Money Fund provided a total
return of 4.02% by investing solely in top quality U.S.
Treasury obligations, which are backed by the full
faith and credit of the U.S. Government. Income
generated by the fund is 100% exempt from state and
local taxes.
The National Municipal Money Fund generated a
tax-exempt total return of 2.67% and the California
Municipal Money Fund realized a double tax-free return
of 2.44%, for maximum taxable equivalent returns of
4.42% and 4.45% respectively. It is anticipated that
the Atlas municipal money funds will continue to
purchase only the highest quality short-term municipal
securities and look primarily for those that are backed
by letters of credit, private insurance, or
pre-refunding.
- ---------------
(11) Lipper LPAR, September 30, 1999
10
<PAGE> 12
Atlas Stock and Bond Fund Total Returns for periods ended December 31, 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 --------------------- (5.20) 13.15 9.94 9/93 (5.64) (8.33) 12.57
Emerging Growth ------------- 42.68 N.A. 28.69 4/97 41.68 38.68 N.A.
Global Growth ---------------- 55.85 N.A. 28.31 4/96 55.04 52.04 N.A.
Growth and Income ----------- 31.72 27.32 19.79 12/90 31.05 28.05 26.69
Strategic Growth -------------- 40.12 25.85 20.51 9/93 39.47 36.47 25.19
Bond Funds:
California
Municipal Bond -------------- (4.48) 5.43 6.38 1/90 (4.99) (7.72) 4.89
National
Municipal Bond -------------- (4.86) 5.35 6.47 1/90 (5.25) (7.98) 4.84
Strategic Income -------------- 1.92 N.A. 6.71 5/96 1.21 (1.60) N.A.
U.S. Government
and Mortgage
Securities -------------------- 0.39 6.82 7.16 1/90 (0.10) (2.94) 6.29
<CAPTION>
Class B Shares
--------------------------------
Since Inception
--------------------------------
without with inception
deferred deferred date
sales sales
charge charge(1)
% %
<S> <C> <C> <C>
Stock Funds:
Balanced --------------------- 11.42 11.42 7/94
Emerging Growth ------------- 27.83 27.33 4/97
Global Growth ---------------- 27.57 27.28 4/96
Growth and Income ----------- 25.18 25.18 7/94
Strategic Growth -------------- 22.96 22.96 7/94
Bond Funds:
California
Municipal Bond -------------- 4.16 4.16 7/94
National
Municipal Bond -------------- 4.26 4.26 7/94
Strategic Income -------------- 5.90 5.45 5/96
U.S. Government
and Mortgage
Securities -------------------- 5.95 5.95 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.
11
<PAGE> 13
Comparing Atlas Fund Performance to the Market
- --------------------------------------------------------------------------------
The following charts compare the growth of a hypothetical
$10,000 investment in each of the Atlas stock and bond funds as compared to a
representative total return index for the market(s) in which each fund invests.
Index performance does not include management expenses, and the mix, quality and
maturity of securities in an index may vary widely from those in our funds'
portfolios. All returns reflect the reinvestment of dividends and capital gains,
if applicable. Atlas Fund returns are for Class A shares. Returns for Class B
shares will differ. As always, past performance is no guarantee of future
results.
Balanced Fund
Balanced Fund Line Graph
<TABLE>
<CAPTION>
ATLAS BALANCED FUND STANDARD & POOR'S
------------------- COMPOSITE INDEX OF 500 LEHMAN BROTHERS AGGREGATE
STOCKS BOND INDEX
---------------------- -------------------------
<S> <C> <C> <C>
9/93 10000.00 10000.00 10000.00
12/94 9752.00 10367.00 9713.00
12/95 12362.00 14259.00 11508.00
12/96 14316.00 17549.00 11924.00
12/97 17569.00 23397.00 13079.00
12/98 19084.00 30088.00 14213.00
12/99 18093.00 36420.00 14094.00
</TABLE>
Emerging Growth Fund
Emerging Growth Fund Line Graph
<TABLE>
<CAPTION>
ATLAS EMERGING GROWTH FUND RUSSELL 2000 INDEX
-------------------------- ------------------
<S> <C> <C>
4/97 10000.00 10000.00
6/97 12440.00 11589.00
9/97 13870.00 13313.00
12/97 13000.00 12867.00
3/98 14620.00 14160.00
6/98 14110.00 13499.00
9/98 11450.00 10779.00
12/98 13750.00 12538.00
3/99 12210.00 11858.00
6/99 12630.00 13701.00
9/99 12870.00 12835.00
12/99 19618.00 15203.00
</TABLE>
Global Growth Fund
Global Growth Fund Line Graph
<TABLE>
<CAPTION>
MORGAN STANLEY CAPITAL
ATLAS GLOBAL GROWTH FUND INTERNATIONAL WORLD INDEX
------------------------ -------------------------
<S> <C> <C>
4/96 10000.00 10000.00
6/96 10118.00 10062.00
12/96 11089.00 10687.00
6/97 13071.00 12357.00
12/97 13789.00 12422.00
6/98 15821.00 14515.00
12/98 16022.00 15506.00
6/99 17903.00 16854.00
12/99 24970.00 19436.00
</TABLE>
Growth and Income Fund
Growth and Income Fund Performance Graph
<TABLE>
<CAPTION>
STANDARD & POOR'S COMPOSITE INDEX
ATLAS GROWTH AND INCOME FUND OF 500 STOCKS
---------------------------- ---------------------------------
<S> <C> <C>
12/90 10000.00 10000.00
12/91 13815.00 13040.00
12/92 14008.00 14031.00
12/93 15465.00 15441.00
12/94 15273.00 15644.00
12/95 20321.00 21516.00
12/96 24418.00 26448.00
12/97 30845.00 35263.00
12/98 38813.00 45347.00
12/99 51122.00 54890.00
</TABLE>
12
<PAGE> 14
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Strategic Growth Fund
Strategic Growth Fund Line Graph
<TABLE>
<CAPTION>
STANDARD & POOR'S COMPOSITE INDEX
ATLAS STRATEGIC GROWTH FUND OF 500 STOCKS
--------------------------- ---------------------------------
<S> <C> <C>
9/93 10000 10000
12/94 10165 10367
12/95 13128 14259
12/96 16242 17549
12/97 20609 23397
12/98 22922 30088
12/99 32117 36420
</TABLE>
California Municipal Bond Fund
California Municipal Bond Fund Line Graph
<TABLE>
<CAPTION>
ATLAS CALIFORNIA MUNICIPAL BOND LEHMAN BROTHERS MUNICIPAL BOND
FUND INDEX
------------------------------- ------------------------------
<S> <C> <C>
1/90 10000 10000
12/90 10902 10780
12/91 12268 12089
12/92 13232 13154
12/93 15020 14770
12/94 14145 14006
12/95 16232 16452
12/96 16866 17180
12/97 18210 18761
12/98 19292 19977
12/99 18428 19564
</TABLE>
National Municipal Bond Fund
National Municipal Bond Fund Line Graph
<TABLE>
<CAPTION>
ATLAS NATIONAL MUNICIPAL BOND LEHMAN BROTHERS MUNICIPAL BOND
FUND INDEX
----------------------------- ------------------------------
<S> <C> <C>
1/90 10000 10000
12/90 10852 10780
12/91 12287 12089
12/92 13389 13154
12/93 15182 14770
12/94 14361 14006
12/95 16481 16452
12/96 17071 17180
12/97 18532 18761
12/98 19589 19977
12/99 18637 19564
</TABLE>
Strategic Income Fund
Strategic Income Fund Line Graph
<TABLE>
<CAPTION>
LEHMAN BROTHERS AGGREGATE SALOMON BROTHERS WORLD
ATLAS STRATEGIC INCOME FUND BOND INDEX GOVERNMENT BOND INDEX
--------------------------- ------------------------- ----------------------
<S> <C> <C> <C>
May-96 10000 10000 10000
Dec-96 10975 10630 10601
Jun-97 11436 10961 10471
Dec-97 12026 11660 10627
Jun-98 12428 12116 10922
Dec-98 12511 12671 12252
Jun-99 12499 12496 11374
Dec-99 12752 12565 11729
</TABLE>
U.S. Government and Mortgage Securities Fund
U.S. Government and Mortgage Securities Fund Line Graph
<TABLE>
<CAPTION>
ATLAS U.S. GOVERNMENT AND LEHMAN BROTHERS U.S. MORTGAGE-
MORTGAGE SECURITIES FUND BACKED SECURITIES INDEX
------------------------- ------------------------------
<S> <C> <C>
1/90 10000 10000
12/90 11124 11151
12/91 12852 12903
12/92 13860 13800
12/93 14898 14744
12/94 14406 14507
12/95 16640 16944
12/96 17389 17851
12/97 18824 19544
12/98 19966 20906
12/99 20045 21293
</TABLE>
13
<PAGE> 15
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund
- --------------------------------------------------------------------
shares or value
face amount (note 1)
---------- ----------
<S> <C> <C>
COMMON STOCKS - 50.76%
Aerospace/Defense - .01%
Raytheon Co., Cl. A............... 191 $ 4,739
Automotive - .39%
Delphi Automotive Systems Corp.... 20,200 318,150
Banks - 11.52%
Banc One Corp..................... 31,000 993,938
Bank of America Corp.............. 24,000 1,204,500
Charter One Financial, Inc........ 15,750 301,219
Chase Manhattan Corp.............. 11,000 854,562
Citigroup, Inc.................... 15,000 833,438
First Union Corp.................. 24,000 787,500
FleetBoston Financial Corp........ 37,688 1,312,013
Keycorp........................... 19,000 420,375
Mellon Financial Corp............. 19,000 647,188
National City Corp................ 8,000 189,500
PNC Bank Corp..................... 7,000 311,500
Summit Bancorp.................... 13,000 398,125
SunTrust Banks, Inc............... 8,000 550,500
U.S. Bancorp...................... 7,000 166,687
Union Planters Corp............... 10,000 394,375
Chemicals & Allied Products - .94%
Dexter Corp....................... 12,000 477,000
Engelhard Corp.................... 15,000 283,125
Consumer Goods & Services - 1.29%
Eastman Kodak Co.................. 11,000 728,750
Newell Rubbermaid, Inc............ 10,900 316,100
Drugs and Health Care - 2.24%
American Home Products Corp. ..... 25,000 985,938
Bristol-Myers Squibb Co. ......... 13,000 834,437
Crescendo Pharmaceuticals Corp.
(b)............................... 145 2,637
Electrical Utilities - 4.16%
Allegheny Energy, Inc. ........... 6,000 161,625
American Electric Power Co.,
Inc. ............................. 2,500 80,312
Central & South West Corp. ....... 12,000 240,000
DQE, Inc. ........................ 5,000 173,125
Florida Progress Corp. ........... 13,000 550,063
Illinova Corp. ................... 19,000 660,250
New Century Energies, Inc. ....... 7,500 227,812
Potomac Electric Power Co. ....... 8,000 183,500
SCANA Corp. ...................... 9,000 241,875
Texas Utilities Co. .............. 12,000 426,750
Unicom Corp. ..................... 13,000 435,500
Financial Services - 3.14%
Associates First Capital Corp.,
Cl. A............................. 4,000 109,750
Deluxe Corp. ..................... 18,000 493,875
FBR Asset Investment Corp. (a).... 50,000 700,000
H & R Block, Inc. ................ 5,000 218,750
Household International, Inc. .... 18,399 685,363
Imperial Credit Commercial
Mortgage Investment Corp. ........ 30,000 341,250
Food & Beverages - .93%
General Mills, Inc. .............. 10,000 357,500
H.J. Heinz Co. ................... 10,000 398,125
Food Wholesalers - .37%
SuperValu Inc. ................... 15,000 300,000
Gas Utilities - 1.31%
Enron Corp. ...................... 20,000 887,500
EOG Resources, Inc. .............. 10,000 175,625
</TABLE>
<TABLE>
---------- ----------
<CAPTION>
Atlas Balanced Fund (continued)
- --------------------------------------------------------------------
shares or value
face amount (note 1)
<S> <C> <C>
Homebuilders/Real Estate - 3.99%
Anthracite Capital, Inc. ......... 25,000 $ 159,375
Archstone Communities Trust....... 21,000 430,500
Avalonbay Communities, Inc. ...... 16,000 549,000
Cornerstone Properties, Inc. ..... 20,000 292,500
Equity Office Properties Trust ... 22,000 541,750
Equity Residential Properties
Trust............................. 15,000 640,313
Horizon Group Properties, Inc.
(b)............................... 1,000 3,375
Prime Retail, Inc................. 20,000 112,500
Reckson Associates Realty Corp.... 25,000 512,500
Industrial Manufacturing - .88%
Sonoco Products Co. .............. 16,000 364,000
Tyco International, Ltd. ......... 9,166 356,328
Insurance - 3.39%
Aetna, Inc. ...................... 16,000 893,000
American General Corp. ........... 8,000 607,000
Enhance Financial Services Group,
Inc. ............................. 18,000 292,500
IPC Holdings, Ltd. ............... 3,900 58,012
Reliance Group Holdings, Inc. .... 10,000 66,875
St. Paul Companies, Inc. ......... 25,000 842,188
Machine Tools & Equipment - .66%
Cooper Industries, Inc. .......... 6,000 242,625
Snap-On, Inc. .................... 11,000 292,188
Manufacturing - 1.17%
Honeywell International, Inc. .... 9,000 519,187
Pall Corp. ....................... 20,000 431,250
Oil & Gas - 6.38%
Atlantic Richfield Co. ........... 5,000 432,500
Chevron Corp. .................... 8,000 693,000
Coastal Corp. .................... 6,000 212,625
Conoco, Inc., Cl. B............... 25,000 621,875
MCN Energy Group, Inc. ........... 8,000 190,000
Occidental Petroleum Corp. ....... 26,000 562,250
Royal Dutch Petroleum Co., NY
Shares............................ 8,000 483,500
Tosco Corp. ...................... 7,000 190,312
Ultramar Diamond Shamrock
Corp. ............................ 10,000 226,875
Unocal Corp. ..................... 12,000 402,750
USX-Marathon Group................ 32,000 790,000
Valero Energy Corp. .............. 19,000 377,625
Paper & Forest Products - 3.23%
Fort James Corp. ................. 14,067 385,084
International Paper Co. .......... 10,000 564,375
Smurfit-Stone Container Corp.
(b)............................... 10,000 245,000
Temple-Inland, Inc. .............. 8,000 527,500
Westvaco Corp. ................... 10,000 326,250
Weyerhauser Co. .................. 8,000 574,500
Printing, Publishing & Allied Products - 1.30%
Dun & Bradstreet Corp. ........... 25,000 737,500
Hollinger International, Inc. .... 20,000 258,750
R. H. Donnelley Corp. (b)......... 3,200 60,400
Retail Trade - .54%
Family Dollar Stores, Inc. ....... 12,000 195,750
Sears Roebuck & Co. .............. 8,000 243,500
Telecommunications - 2.92%
GTE Corp. ........................ 7,000 493,938
Motorola, Inc. ................... 9,800 1,443,050
SBC Communications, Inc. ......... 9,000 438,750
----------
Total Common Stocks (cost: $39,128,818) 41,249,471
----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE> 16
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
- --------------------------------------------------------------------
shares or value
face amount (note 1)
---------- ----------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS - 10.35%
Banks - 2.57%
Banco Commercial Portuguese
International, Ltd. .............. 600 $ 61,800
National Australia Bank, Ltd. .... 30,000 828,750
Sovereign Capital Trust II........ 4,400 213,400
St. George Bank, Ltd. (a)......... 8,000 424,000
WBK STRYPES Trust................. 17,400 557,888
Chemicals & Allied Products - .47%
Hercules Trust II Units........... 500 385,000
Consumer Goods & Services - 1.17%
Newell Financial Trust 1 (a)...... 25,000 946,875
Electrical Utilities - .63%
NiSource, Inc. ................... 7,000 252,437
Texas Utilities Co., PRIDES....... 5,900 257,387
Food & Related - .15%
Chiquita Brands International,
Inc. ............................. 5,000 124,375
Homebuilders/Real Estate - .48%
Kaufman & Broad Home Corp. ....... 50,000 393,750
Industrials - .13%
Owens Corning Capital LLC, MIPS
(a)............................... 3,000 103,125
Insurance - 1.28%
American Heritage Life Investment
Corp. ............................ 5,000 433,438
PLC CAP Trust II, PRIDES.......... 11,500 608,063
Leisure & Entertainment - .60%
Premier Parks, Inc., PIES......... 9,000 486,000
Oil & Gas - 1.22%
Coastal Corp...................... 25,000 582,812
MCN Energy Group, Inc. ........... 10,000 406,250
Specialty Retailing - 1.20%
Merrill Lynch-Dollar General
Corp., STRYPES.................... 27,100 978,988
Transportation - .45%
Union Pacific Capital Trust (a)... 8,800 364,100
----------
Total Convertible Preferred Stocks (cost:
$9,174,321) 8,408,438
----------
CONVERTIBLE BONDS - .63%
Insurance - .28%
Mutual Risk Management, Ltd., 0%
due 10/30/15 (a).................. $ 500,000 229,375
Metals Mining - .35%
Inco, Ltd., 5.75% due 07/01/04.... $ 300,000 284,250
----------
Total Convertible Bonds (cost: $520,194) 513,625
----------
CORPORATE BONDS - 6.14%
Automotive - .12%
General Motors Acceptance Corp.,
5.50% due 12/15/01................ $ 100,000 97,121
Banks - .72%
Bank One Corp., 7.25% due
08/15/04.......................... $ 590,000 586,812
Broadcast, Radio & TV - .91%
TCI Communications, Inc., 6.875%
due 02/15/06...................... $ 600,000 584,520
Tele-Communications, Inc., 7.25%
due 08/01/05...................... $ 160,000 159,472
</TABLE>
<TABLE>
---------- ----------
<CAPTION>
Atlas Balanced Fund (continued)
- --------------------------------------------------------------------
shares or value
face amount (note 1)
<S> <C> <C>
Diversified Media - .10%
Time Warner, Inc., 7.95% due
02/01/00.......................... $ 80,000 $ 80,097
Drugs and Health Care - .30%
R.P. Scherer Corp., 6.75% due
02/01/04.......................... $ 250,000 243,231
Financial Services - .31%
PaineWebber Group, Inc., 7% due
03/01/00.......................... $ 250,000 250,179
Food & Beverages - .66%
Coca-Cola Enterprises, Inc., 5.75%
due 11/01/08...................... $ 600,000 535,969
Food Processing - .31%
ConAgra, Inc., 7.40% due
09/15/04.......................... $ 250,000 249,496
Foreign Government - .19%
Treasury Corp. of Victoria, 9% due
09/04/02.......................... $ 228,000 156,745
Gas Utilities - .38%
Enron Corp., 7.625% due
09/10/04.......................... $ 175,000 175,919
Enron Corp., 9.875% due
06/15/03.......................... $ 125,000 133,976
Hotel/Gaming - .14%
Circus Circus Enterprises, Inc.,
6.75% due 07/15/03................ $ 125,000 118,125
Oil & Gas - .40%
Coastal Corp., 9.75% due
08/01/03.......................... $ 300,000 322,824
Paper & Forest Products - .24%
Fletcher Challenge Capital Canada,
Ltd., 7.75% due 06/20/06.......... $ 200,000 192,153
Telephone Utilities - .66%
Sprint Capital Corp., 6.875% due
11/15/28.......................... $ 600,000 533,742
Transportation - .70%
Union Pacific Corp., 6.39% due
11/01/04.......................... $ 600,000 572,036
----------
Total Corporate Bonds (cost: $5,248,477) 4,992,417
----------
UNITED STATES TREASURY NOTES & BONDS - 28.63%
5.875%, 11/30/01................... $16,000,000 15,900,000
Strip, 0% due 11/15/18............. $26,500,000 7,369,623
----------
Total U.S. Treasury Notes & Bonds (cost:
$23,361,594) 23,269,623
----------
SHORT-TERM SECURITIES - 3.27%
Triparty Repurchase Agreement dated
December 31, 1999 with Prudential
Securities, Inc., effective yield
of 2%, due January 3, 2000,
collateralized by FHLMC, 7%,
December 1, 2029 with a value of
$2,713,792....................... $2,659,701 2,659,701
----------
Total Short-Term Securities (cost: $2,659,701) 2,659,701
----------
TOTAL SECURITIES (COST: $80,093,105) - 99.78% 81,093,275
OTHER ASSETS AND LIABILITIES, NET - .22% 174,530
----------
NET ASSETS - 100.00%.............................. $ 81,267,805
----------
----------
</TABLE>
15
<PAGE> 17
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund
- ----------------------------------------------------------------------
shares or value
face amount (i) (note 1)
--------------- ------------
<S> <C> <C>
COMMON STOCKS - 90.33%
Aerospace/Defense - .61%
Armor Holdings, Inc. (b)........ 10,000 $ 131,250
Apparel & Textiles - .46%
Chico's Fas, Inc. (b)........... 2,600 97,825
Broadcast, Radio & TV - 3.44%
Citadel Communications Corp.
(b)............................. 3,000 194,625
Classic Communications, Inc.
(b)............................. 2,000 73,125
Cumulus Media, Inc., Cl. A
(b)............................. 3,300 167,475
Insight Communications Co., Inc.
(b)............................. 3,300 97,763
Radio Unica Corp. (b)........... 1,200 34,650
Spanish Broadcasting System,
Inc. (b)........................ 4,300 173,075
Computer Hardware - 6.18%
3DO Co. (b)..................... 10,000 90,938
Creo Products, Inc. (b)......... 4,600 176,812
Echelon Corp. (b)............... 3,500 68,469
Gadzoox Networks, Inc. (b)...... 900 39,206
Network Appliance, Inc. (b)..... 4,000 332,250
Optimal Robotics Corp. (b)...... 3,800 141,550
SanDisk Corp. (b)............... 1,600 154,000
SmartDisk Corp. (b)............. 1,000 32,750
Xircom, Inc. (b)................ 3,900 292,500
Computer Software - 20.14%
Accrue Software, Inc. (b)....... 1,350 73,069
Active Software, Inc. (b)....... 1,500 138,000
Advent Software, Inc. (b)....... 4,650 299,634
Agency.com, Inc. (b)............ 400 20,400
Allaire Corp. (b)............... 1,000 146,313
Andover.Net, Inc. (b)........... 1,100 39,188
Best Software, Inc. (b)......... 3,000 88,500
BindView Development Corp.
(b)............................. 9,000 447,188
Brio Technology, Inc. (b)....... 5,000 210,000
Data Return Corp. (b)........... 2,500 133,750
E.piphaney, Inc. (b)............ 450 100,406
eCollege.com, Inc. (b).......... 2,900 31,719
Freemarkets, Inc. (b)........... 150 51,197
GRIC Communications, Inc. (b)... 600 15,225
ibasis, Inc. (b)................ 1,600 46,000
imanage, Inc. (b)............... 700 22,488
Interactive Intelligence, Inc.
(b)............................. 3,900 103,837
Intertrust Technologies Corp.
(b)............................. 450 52,931
Legato Systems, Inc. (b)........ 2,000 137,625
McAfee.com Corp. (b)............ 1,200 54,000
Metasolv Software, Inc. (b)..... 1,000 81,750
Micromuse, Inc. (b)............. 2,500 425,000
Mission Critical Software, Inc.
(b)............................. 1,300 91,000
National Information Consortium,
Inc. (b)........................ 2,900 92,800
Netcentives, Inc. (b)........... 1,400 87,238
NetIQ Corp. (b)................. 4,100 213,456
Novadigm, Inc. (b).............. 4,500 93,375
OnDisplay, Inc. (b)............. 300 27,262
Optio Software, Inc. (b)........ 3,100 72,850
Preview Systems, Inc. (b)....... 500 32,438
Primus Knowledge Solutions, Inc.
(b)............................. 2,700 122,344
Quest Software, Inc. (b)........ 800 81,600
SERENA Software, Inc. (b)....... 4,000 123,750
SonicWall, Inc. (b)............. 1,100 44,275
Telemate.Net Software, Inc.
(b)............................. 3,300 53,625
</TABLE>
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund (continued)
- ----------------------------------------------------------------------
shares or value
face amount (i) (note 1)
--------------- ------------
<S> <C> <C>
TenFold Corp. (b)............... 2,500 $ 99,844
Verity, Inc. (b)................ 3,000 127,688
Viador, Inc. (b)................ 2,500 105,937
Vitria Technology, Inc. (b)..... 400 93,600
ZapMe! Corp. (b)................ 6,100 52,612
Consumer Goods & Services - 5.48%
Cornell Corrections, Inc. (b)... 14,000 117,250
Corporate Executive Board Co.
(b)............................. 3,500 195,563
Diedrich Coffee, Inc. (b)....... 20,000 81,250
Getty Images, Inc. (b).......... 2,400 117,300
Jupiter Communications, Inc.
(b)............................. 1,400 42,350
Koala Corp. (b)................. 10,000 140,000
Plug Power, Inc. (b)............ 1,900 53,675
Source Information Management
Co. (b)......................... 12,000 201,000
Tetra Tech, Inc. (b)............ 15,000 230,625
Diversified Financial - .26%
Nextcard, Inc. (b).............. 1,900 54,862
Diversified Media - 1.20%
Lifeminders.com, Inc. (b)....... 1,800 103,950
NetRatings, Inc. (b)............ 400 19,250
True North Communications,
Inc. ........................... 3,000 134,063
Drugs & Health Care - 3.20%
Abgenix, Inc. (b)............... 1,600 212,000
BioCryst Pharmaceuticals, Inc.
(b)............................. 4,000 118,000
Neurocrine Biosciences, Inc.
(b)............................. 6,900 170,775
Renal Care Group, Inc. (b)...... 8,000 187,000
Education - .67%
Corinthian Colleges, Inc. (b)... 6,000 143,250
Electronics - 6.03%
Act Manufacturing, Inc. (b)..... 4,000 150,000
Alpha Industries, Inc. (b)...... 2,800 160,475
Anadigics, Inc. (b)............. 1,500 70,781
ASM International NV (b)........ 5,900 135,700
AstroPower, Inc. (b)............ 5,000 70,000
Asyst Technologies, Inc. (b).... 2,100 137,681
ATMI, Inc. (b).................. 4,600 152,088
Audiovox Corp. (b).............. 3,000 91,125
Caliper Technologies Corp.
(b)............................. 300 20,025
Chartered Semiconductor
Manufacturing, Ltd. (b)......... 2,200 160,600
InterTAN, Inc. (b).............. 4,200 109,725
Metron Technology NV (b)........ 2,500 40,156
Energy Services &
Producers - .40%
Cal Dive International, Inc.
(b)............................. 2,600 86,125
Environmental Management - .40%
Waste Connections, Inc. (b)..... 6,000 86,625
Financial Services - 3.00%
Investors Financial Services
Corp. .......................... 5,000 230,000
Labranche & Co., Inc. (b)....... 10,600 135,150
MicroFinancial, Inc. ........... 15,000 175,313
Navigant Consulting, Inc. (b)... 3,800 41,325
ReSourcePhoenix.com, Inc. (b)... 3,300 65,175
Health Care/Supplies & Services -
1.94%
Cubist Pharmaceuticals, Inc.
(b)............................. 4,000 77,000
Hanger Orthopedic Group, Inc.
(b)............................. 1,700 17,000
NovaMed Eyecare, Inc. (b)....... 2,700 18,225
PlanetRx.com, Inc. (b).......... 2,600 37,700
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE> 18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund (continued)
- ----------------------------------------------------------------------
shares or value
face amount (i) (note 1)
--------------- ------------
<S> <C> <C>
SciQuest.com, Inc. (b).......... 600 $ 47,700
Syncor International Corp.
(b)............................. 5,000 145,625
Ventana Medical Systems, Inc.
(b)............................. 3,000 74,625
Industrial Services - 2.13%
CyberSource Corp. (b)........... 1,000 51,750
Digimarc Corp. (b).............. 1,800 90,000
Keynote Systems, Inc. (b)....... 1,100 81,125
Loislaw.com, Inc. (b)........... 2,100 82,162
Metamor Worldwide, Inc. (b)..... 3,900 113,588
Navidec, Inc. (b)............... 3,300 39,600
Information Technology - 12.37%
Alloy Online, Inc. (b).......... 5,900 92,925
AppNet, Inc. (b)................ 2,200 96,250
Art Technology Group, Inc.
(b)............................. 1,500 192,187
BackWeb Technologies, Ltd.
(b)............................. 2,600 109,525
Braun Consulting, Inc. (b)...... 4,500 321,750
C-bridge Internet Solutions,
Inc. (b)........................ 700 34,038
CAIS Internet, Inc. (b)......... 3,200 113,600
Critical Path, Inc. (b)......... 1,200 113,250
El Sitio, Inc. (b).............. 700 25,725
Finisar Corp. (b)............... 400 35,950
Interactive Pictures Corp.
(b)............................. 3,400 79,262
Kopin Corp. (b)................. 3,000 126,000
MedQuist, Inc. (b).............. 2,300 59,369
OneSource Information Services,
Inc. (b)........................ 15,000 201,563
Packeteer, Inc. (b)............. 1,400 99,400
pcOrder.com, Inc. (b)........... 1,900 96,900
Predictive Systems, Inc. (b).... 1,100 72,050
Ramp Networks, Inc. (b)......... 5,600 85,400
Salon.com, Inc. (b)............. 12,000 60,000
Stamps.com, Inc. (b)............ 2,600 108,225
Student Advantage, Inc. (b)..... 5,600 124,250
Tanning Technology Corp. (b).... 1,600 94,300
Viant Corp. (b)................. 1,100 108,900
WatchGuard Technologies, Inc.
(b)............................. 2,400 72,600
WebTrends Corp. (b)............. 1,700 137,700
Insurance - .60%
Advance Paradigm, Inc. (b)...... 6,000 129,375
Leisure & Entertainment - 3.57%
Activision, Inc. (b)............ 10,000 153,125
Cinar Films, Inc., Cl. B (b).... 13,000 318,500
Handleman Co. .................. 12,000 160,500
Imax Corp. (b).................. 5,000 136,875
Medical Technology - .20%
Maxygen, Inc. (b)............... 600 42,600
Restaurants - 1.54%
Buca, Inc. (b).................. 13,000 133,250
P.F. Chang's China Bistro, Inc.
(b)............................. 8,000 199,000
Specialty Retailing - 6.92%
Bolder Technologies Corp. (b)... 4,100 52,275
Charlotte Russe Holding, Inc.
(b)............................. 3,000 63,000
Copart, Inc. (b)................ 3,900 169,650
Cost Plus, Inc. (b)............. 2,600 92,625
</TABLE>
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund (continued)
- ----------------------------------------------------------------------
shares or value
face amount (i) (note 1)
--------------- ------------
<S> <C> <C>
David's Bridal, Inc. (b)........ 14,400 $ 161,100
Factory 2-U Stores, Inc. (b).... 4,400 124,850
Pantry, Inc. (b)................ 7,400 104,525
PurchasePro.com, Inc. (b)....... 1,500 206,250
School Specialty, Inc. (b)...... 6,300 95,287
Tweeter Home Entertainment
Group, Inc. (b)................. 6,000 213,000
Whitehall Jewellers, Inc. (b)... 4,000 147,500
Yankee Candle Co., Inc. (b)..... 3,600 58,725
Supermarkets - .40%
Wild Oats Markets, Inc. (b)..... 3,900 86,531
Telecommunications - 8.80%
Advanced Fibre Communications,
Inc. (b)........................ 4,300 192,156
Aether Systems, Inc. (b)........ 700 50,137
AirGate PCS, Inc. (b)........... 500 26,375
Airnet Communications Corp.
(b)............................. 600 21,825
Allied Riser Communications
Corp. (b)....................... 4,000 82,750
Clarent Corp. (b)............... 2,100 163,275
Efficient Networks, Inc. (b).... 1,200 81,600
Extreme Networks, Inc. (b)...... 600 50,100
Inet Technologies, Inc. (b)..... 1,700 118,787
Internap Network Services Corp.
(b)............................. 600 103,800
Latitude Communications, Inc.
(b)............................. 3,900 101,887
MGC Communications, Inc. (b).... 7,000 355,250
Network Plus Corp. (b).......... 4,900 102,900
Phone.com, Inc. (b)............. 550 63,766
Proxim, Inc. (b)................ 2,000 220,000
TeleCorp PCS, Inc. (b).......... 500 19,000
Tritel, Inc. (b)................ 1,000 31,687
Triton PCS Holdings, Inc. (b)... 1,200 54,600
Z-Tel Technologies, Inc. (b).... 1,300 52,487
Toys - .39%
JAKKS Pacific, Inc. (b)......... 4,500 84,094
----------
Total Common Stocks (cost: $13,251,744) 19,434,647
----------
SHORT-TERM SECURITIES - 10.14%
Triparty Repurchase Agreement
dated December 31, 1999 with
Prudential Securities, Inc.,
effective yield of 2%, due
January 3, 2000, collateralized
by FHLMC, 7%, April 1, 2014 with
a value of $61,316, and by FNMA,
7%, May 5, 2014 with a value of
$2,165,324...................... $ 2,182,191 2,182,191
----------
Total Short-Term Securities (cost: $2,182,191) 2,182,191
----------
TOTAL SECURITIES (COST: $15,433,935) - 100.47% 21,616,838
OTHER ASSETS AND LIABILITIES, NET - (.47)% (102,367)
----------
NET ASSETS - 100.00% $ 21,514,471
----------
----------
</TABLE>
17
<PAGE> 19
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Global Growth Fund
- ----------------------------------------------------------------------
shares, units
or face value
amount (i) (note 1)
------------- ------------
<S> <C> <C>
COMMON STOCKS - 85.92%
Automotive - 4.76%
Autoliv, Inc. .................... 12,700 $ 371,354
General Motors Corp. ............. 9,100 661,456
Porsche AG, Preference............ 720 1,970,444
Volkswagen AG..................... 13,200 742,418
Banks - 2.37%
Australia & New Zealand Banking
Group, Ltd. ...................... 85,000 618,348
Industrial Credit & Investment
Corp. of India, Ltd. GDR.......... 50,400 743,400
Royal Bank of Scotland Group
PLC............................... 14,250 252,738
Unicredito Italiano SPA........... 50,900 250,124
Broadcast, Radio & TV - 7.63%
Canal Plus........................ 12,503 1,817,795
Grupo Televisa SA, Sponsored GDR
(b)............................... 18,170 1,240,102
ProSieben Media AG, Preference.... 9,685 562,261
Television Broadcast, Ltd. (b).... 120,000 818,164
Television Francaise.............. 2,380 1,245,211
TeleWest Communications PLC (b)... 60,299 321,667
Computer Hardware - 3.79%
Cisco Systems, Inc. (b)........... 7,210 772,371
International Business Machines
Corp. ............................ 6,210 670,680
Sun Microsystems, Inc. (b)........ 19,900 1,541,006
Computer Services - 2.20%
Getronics NV...................... 21,860 1,735,295
Computer Software - 6.39%
Cadence Design Systems, Inc.
(b)............................... 69,290 1,662,960
Cap Gemini Sogeti SA.............. 4,800 1,217,039
Oracle Corp. (b).................. 14,340 1,606,976
Sybase, Inc. (b).................. 14,900 253,300
Synopsys, Inc. (b)................ 4,400 293,700
Conglomerate - .84%
Bombadier, Inc., Cl. B............ 32,300 659,876
Diversified Financial - 3.61%
Allied Zurich PLC (b)............. 44,890 528,966
American Express Co. ............. 4,000 665,000
Associates First Capital Corp. ... 5,100 139,931
AXA SA............................ 3,740 520,799
Citigroup, Inc. .................. 13,100 727,869
Credit Saison Co., Ltd. .......... 15,000 261,240
Drugs & Health Care - 9.28%
ALZA Corp. (b).................... 18,700 647,488
Amgen, Inc. (b)................... 12,260 736,366
Eisai Co., Ltd. .................. 30,000 576,782
Elan Corp. PLC ADR (b)............ 26,000 767,000
Fresenius AG, Preference.......... 6,150 1,126,184
Genset, Sponsored ADR (b)......... 30,500 581,406
Genzyme Corp. - General Division
(b)............................... 7,460 335,700
Gilead Sciences, Inc. (b)......... 7,600 411,350
Glaxo Wellcome PLC, Sponsored
ADR............................... 6,600 368,775
Millenium Pharmaceuticals, Inc.
(b)............................... 9,000 1,098,000
Pliva D. D. GDR (a)(b)............ 30,450 397,373
Taisho Pharmaceutical Co.,
Ltd. ............................. 8,760 257,130
Electronics - 8.34%
Koninklijke Philips Electronics
NV................................ 9,200 1,249,638
Lernout & Hauspie Speech Products
NV (b)............................ 11,800 545,750
National Semiconductor Corp.
(b)............................... 48,800 2,089,250
</TABLE>
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- ----------------------------------------------------------------------
shares, units
or face value
amount (i) (note 1)
------------- ------------
<S> <C> <C>
STMicroelectronics NV (b)......... 10,200 $ 1,544,662
Toshiba Corp. .................... 149,000 1,137,126
Environmental Management - .64%
Rentokil Initial PLC.............. 138,010 503,259
Financial Services - 1.68%
Federal National Mortgage
Association....................... 8,110 506,368
Lehman Brothers Holdings, Inc. ... 9,600 813,000
Food & Beverages - 1.03%
Cadbury Schweppes PLC............. 85,350 515,618
Dairy Farm International Holdings,
Ltd. ............................. 328,012 295,211
Health Care/Supplies &
Services - 2.57%
Affymetrix, Inc. (b).............. 5,700 967,219
C. R. Bard, Inc. ................. 7,400 392,200
Hoya Corp. ....................... 4,000 315,053
Quintiles Transnational Corp.
(b)............................... 18,800 351,325
Homebuilders/Real Estate - .31%
IRSA Inversiones y
Representaciones SA............... 76,113 246,637
Hotel/Gaming - .58%
International Game Technology..... 22,600 459,063
Industrial Manufacturing - 1.05%
International Flavors &
Fragrances, Inc. ................. 21,800 822,950
Industrial Materials - .69%
Hanson Trust PLC.................. 65,200 546,598
Industrial Services - 3.06%
Manpower, Inc. ................... 19,500 733,688
WPP Group PLC..................... 105,880 1,677,784
Insurance - 1.09%
Aegon NV.......................... 6,140 592,447
American International Group,
Inc. ............................. 2,462 266,204
Leisure & Entertainment - .35%
Disney (Walt) Co. ................ 9,340 273,195
Manufacturing - 1.48%
Sidel SA.......................... 5,270 543,497
Societe BIC SA.................... 13,740 624,591
Oil & Gas - .35%
BP Amoco PLC ADR.................. 4,614 273,668
Printing, Publishing & Allied Products - 1.04%
Reed International PLC............ 68,440 512,404
Singapore Press Holdings, Ltd. ... 14,000 303,452
Retail trade - .97%
Dixons Group PLC.................. 31,820 765,329
Specialty Retailing - 1.74%
Circuit City Stores............... 11,410 514,163
Wella AG, Preference.............. 38,700 856,636
Telecommunications - 14.38%
Alcatel Alsthom................... 5,690 1,305,299
Hellenic Telecommunication
Organization SA................... 7,366 174,221
L.M. Ericsson Telephone Co., Cl.
B, Sponsored ADR.................. 25,700 1,688,169
MCI Worldcom, Inc. (b)............ 8,355 443,337
Nokia Corp., Cl. A, Sponsored
ADR............................... 4,270 811,300
NTT Mobile Communications Network,
Inc. ............................. 28 1,076,660
QUALCOMM, Inc. (b)................ 17,820 3,138,548
Scientific-Atlanta, Inc. ......... 17,330 963,981
Tele Norte Leste Participacoes
SA................................ 33,563,000 901,083
Telecel-Comunicacoes Pessoais
SA................................ 22,300 388,387
Telesp Celular Participacoes SA... 3,400 144,075
Telstra Corp., Ltd. .............. 52,600 285,924
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE> 20
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
- ----------------------------------------------------------------------
shares, units
or face value
amount (i) (note 1)
------------- ------------
<S> <C> <C>
Telephone Utilities - 2.22%
DDI Corp. ........................ 25 $ 342,449
Portugal Telecom SA............... 28,500 312,274
Telecom Italia SPA................ 98,540 1,096,654
Toys - .94%
Hasbro, Inc. ..................... 19,900 379,344
Nintendo Co., Ltd. ............... 2,200 362,272
Transportation - .54%
Peninsular and Oriental Steam
Navigation Co. ................... 25,400 423,826
----------
Total Common Stocks (cost: $44,408,730) 67,651,832
----------
SHORT-TERM SECURITIES - 11.85%
Triparty Repurchase Agreement dated
December 31, 1999 with Prudential
Securities, Inc., effective yield
of 2%, due January 3, 2000,
collateralized by FHLMC Bonds, 6%,
March 1, 2014 with a value of
$9,422,448........................ $ 9,326,883 9,326,883
----------
Total Short-Term Securities (cost: $9,326,883) 9,326,883
----------
TOTAL SECURITIES (COST: $53,735,613) - 97.77% 76,978,715
OTHER ASSETS AND LIABILITIES, NET - 2.23% 1,755,980
----------
NET ASSETS - 100.00% $ 78,734,695
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas Growth and Income Fund
- --------------------------------------------------------------------
shares or value
face amount (note 1)
----------- ------------
<S> <C> <C>
COMMON STOCKS - 77.18%
Banks - 1.62%
Bank of America Corp. ............ 140,000 $ 7,026,250
Computer Hardware - 4.65%
Cisco Systems, Inc. (b)........... 60,000 6,427,500
EMC Corp. (b)..................... 100,000 10,925,000
Hewlett-Packard Co. .............. 25,000 2,848,438
Computer Software - 7.94%
Microsoft Corp. (b)............... 295,276 34,473,473
Diversified Financial - 2.56%
Citigroup, Inc. .................. 200,000 11,112,500
Drugs & Health Care - 6.24%
Amgen, Inc. (b)................... 240,000 14,415,000
Biogen, Inc. (b).................. 150,000 12,675,000
Electrical Utilities - 1.45%
AES Corp. (b)..................... 84,200 6,293,950
Electronics - 12.09%
Intel Corp. ...................... 50,000 4,115,625
JDS Uniphase Corp. (b)............ 300,000 48,393,750
Financial Services - 3.89%
Charles Schwab Corp. ............. 100,000 3,837,500
Household International, Inc. .... 350,000 13,037,500
</TABLE>
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------------
shares or value
face amount (note 1)
----------- ------------
<S> <C> <C>
Food & Beverages - 5.10%
Anheuser-Busch Companies, Inc. ... 200,000 $ 14,175,000
Nabisco Group Holdings Corp. ..... 750,000 7,968,750
Gas Utilities - 3.46%
Enron Corp. ...................... 338,000 14,998,750
Industrial Manufacturing - 3.85%
Tyco International, Ltd. ......... 430,000 16,716,250
Insurance - 1.12%
American International Group,
Inc. ............................. 45,057 4,871,788
Leisure & Entertainment - .85%
Royal Caribbean Cruises, Ltd. .... 75,000 3,698,438
Oil & Gas - 3.38%
Exxon Mobil Corp. ................ 182,015 14,663,583
Retail Trade - 3.18%
Wal-Mart Stores, Inc. ............ 200,000 13,825,000
Specialty Retailing - 10.95%
Circuit City Stores - Circuit City
Group............................. 150,000 6,759,375
Home Depot, Inc. ................. 285,149 19,550,494
Kohls Corp. (b)................... 90,000 6,496,875
Tandy Corp. ...................... 300,000 14,756,250
Telecommunications - 4.85%
Motorola, Inc. ................... 40,000 5,890,000
Nortel Networks Corp. ............ 150,000 15,150,000
----------
Total Common Stocks (cost: $213,311,900) 335,102,039
----------
CONVERTIBLE PREFERRED STOCKS - 4.58%
Electrical Utilities - .70%
Texas Utilities Co. .............. 70,000 3,053,750
Leisure & Entertainment - 1.24%
Premier Parks, Inc. .............. 100,000 5,400,000
Telecommunications - 2.64%
Global TeleSystems Group, Inc. ... 60,000 3,435,000
Global TeleSystems Group, Inc.
(a)............................... 140,000 8,015,000
----------
Total Convertible Preferred Stocks (cost:
$20,765,177) 19,903,750
----------
CONVERTIBLE BONDS - 2.22%
Computer Hardware - 2.22%
EMC Corp., 3.25% due 03/15/02
(a)............................... $1,000,000 9,652,500
----------
Total Convertible Bonds (cost: $1,009,840) 9,652,500
----------
UNITED STATES TREASURY NOTES & BONDS - 2.38%
5.625% due 12/31/02............... $2,000,000 1,961,876
5.75% due 11/15/00................ $2,000,000 1,995,000
5.875% due 09/30/02............... $1,000,000 989,375
5.875% due 11/15/05............... $2,000,000 1,941,876
6% due 08/15/00................... $ 500,000 500,469
6% due 07/31/02................... $ 500,000 497,031
6.125% due 08/15/07............... $1,000,000 974,688
6.375% due 08/15/27............... $1,000,000 960,000
6.50% due 05/15/05................ $ 500,000 500,157
----------
Total U.S. Treasury Notes & Bonds (cost:
$10,453,755) 10,320,472
----------
</TABLE>
19
<PAGE> 21
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- --------------------------------------------------------------------
shares or value
face amount (note 1)
----------- ------------
<S> <C> <C>
SHORT-TERM SECURITIES - 13.78%
Triparty Repurchase Agreement dated
December 31, 1999 with Prudential
Securities, Inc., effective yield
of 2%, due January 3, 2000,
collateralized by FHLMC, 6.50%,
November 1, 2028 with a value of
$19,613,420, by FHLMC, 7%,
December 1, 2029 with a value of
$3,127,546 and by U.S. Treasury
Note, 6.50%, May 15, 2005 with a
value of $38,257,702.............. $59,801,744 $ 59,801,744
----------
Total Short-Term Securities (cost: $59,801,744) 59,801,744
----------
TOTAL SECURITIES (COST: $305,342,416) - 100.14% 434,780,505
OTHER ASSETS AND LIABILITIES, NET - (.14)% (588,427)
----------
NET ASSETS - 100.00% $434,192,078
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Growth Fund
- --------------------------------------------------------------------
shares or value
face amount (note 1)
----------- ------------
<S> <C> <C>
COMMON STOCKS - 87.90%
Broadcast, Radio & TV - 1.39%
Infinity Broadcasting Corp. (b)... 45,000 $ 1,628,438
Computer Hardware - 11.68%
Apple Computer, Inc. (b).......... 13,500 1,387,125
Cisco Systems, Inc. (b)........... 28,000 2,999,500
Dell Computer Corp. (b)........... 20,000 1,020,000
EMC Corp. (b)..................... 30,000 3,277,500
Gateway, Inc. (b)................. 30,000 2,161,875
Lexmark International Group, Inc.,
Cl. A (b)......................... 31,100 2,814,550
Computer Software - 9.92%
America Online, Inc. (b).......... 18,000 1,357,875
Citrix Systems, Inc. (b).......... 18,000 2,214,000
Compuware Corp. (b)............... 44,100 1,642,725
Microsoft Corp. (b)............... 40,000 4,670,000
Veritas Software Corp. (b)........ 12,000 1,717,500
Drugs & Health Care - 4.24%
Biogen, Inc. (b).................. 23,000 1,943,500
IDEC Pharmaceuticals Corp. (b).... 24,000 2,358,000
Immunex Corp. (b)................. 6,000 655,875
Electrical Utilities - 1.71%
AES Corp. (b)..................... 26,700 1,995,825
Electronics - 16.59%
E-Tek Dynamics, Inc. (b).......... 30,000 4,038,750
Intel Corp. ...................... 21,100 1,736,794
JDS Uniphase Corp. (b)............ 36,000 5,807,250
LSI Logic Corp. (b)............... 18,000 1,215,000
SDL, Inc. (b)..................... 12,000 2,616,000
Solectron Corp. (b)............... 20,000 1,902,500
Vitesse Semiconductor Corp. (b)... 40,000 2,097,500
Financial Services - 2.38%
Citigroup, Inc. .................. 50,000 2,778,125
Gas Utilities - 1.33%
Enron Corp. ...................... 35,000 1,553,125
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Growth Fund (continued)
- --------------------------------------------------------------------
shares or value
face amount (note 1)
----------- ------------
<S> <C> <C>
Health Care/Supplies &
Services - 4.28%
Amgen, Inc. (b)................... 61,400 $ 3,687,837
Waters Corp. (b).................. 25,000 1,325,000
Industrial Manufacturing - 8.55%
Optical Coating Laboratory,
Inc. ............................. 20,000 5,920,000
Tyco International, Ltd. ......... 105,000 4,081,875
Information Technology - .57%
USWeb Corp. (b)................... 15,000 666,562
Leisure & Entertainment - 1.26%
Royal Caribbean Cruises, Ltd. .... 30,000 1,479,375
Oil & Gas - 2.59%
Exxon Mobil Corp. ................ 37,644 3,032,695
Retail Trade - 4.84%
Abercrombie & Fitch Co. (b)....... 35,000 934,063
Best Buy Co., Inc. (b)............ 46,000 2,308,625
Wal-Mart Stores, Inc. ............ 35,000 2,419,375
Specialty Retailing - 10.78%
Home Depot, Inc. ................. 45,000 3,085,312
Kohls Corp. (b)................... 32,000 2,310,000
Tandy Corp. ...................... 65,000 3,197,187
Tiffany & Co. .................... 45,000 4,016,250
Telecommunications - 4.75%
Lucent Technologies, Inc. ........ 20,000 1,496,250
Nortel Networks Corp. ............ 40,200 4,060,200
Telephone Utilities - 1.04%
BroadWing, Inc. (b)............... 33,000 1,216,875
----------
Total Common Stocks (cost: $76,757,565) 102,826,813
----------
SHORT-TERM SECURITIES - 12.11%
Triparty Repurchase Agreement dated
December 31, 1999 with Prudential
Securities, Inc., effective yield
of 2%, due January 3, 2000,
collateralized by FHLMC, 7%,
December 1, 2029 with a value of
$1,577,922, and by FNMA, 7%, March
1, 2013 with a value of
$12,875,293....................... $14,169,594 14,169,594
----------
Total Short-Term Securities (cost: $14,169,594) 14,169,594
----------
TOTAL SECURITIES (COST: $90,927,159) - 100.01% 116,996,407
OTHER ASSETS AND LIABILITIES, NET - (.01)% (9,762)
----------
NET ASSETS - 100.00% $116,986,645
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
BONDS - 93.68%
Anaheim Public Financing Authority,
Lease Revenue Capital
Appreciation, Series C, FSA
Insured, 0% due 09/01/32.......... $5,000,000 $ 660,200
Anaheim Public Financing Authority,
Lease Revenue Public Improvements
Project, Series A, FSA Insured, 5%
due 03/01/37...................... 6,000,000 5,004,660
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE> 22
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Brea, Public Finance Authority
Revenue Tax Allocation,
Redevelopment Project AB,
Unrefunded, Series A, MBIA
Insured, 6.75% due 08/01/22....... $ 660,000 $ 691,027
Burbank, Glendale, Pasadena Airport
Authority, Airport Revenue
Refunding, AMBAC Insured, 6.40%
due 06/01/10...................... 2,000,000 2,075,480
Central Coast Water Authority,
Revenue Refunding, State Water
Project, Regional Facilities,
Series A, AMBAC Insured, 5% due
10/01/22.......................... 3,250,000 2,827,403
Contra Costa Water District, Water
Treatment Revenue Refunding,
Series G, MBIA Insured, 5.90% due
10/01/08.......................... 3,600,000 3,788,204
Elk Grove Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured, 6.50% due 12/01/24....... 1,500,000 1,616,625
Foothill/Eastern Corrider Agency,
Toll Road Revenue, 5.750%
01/15/40.......................... 5,200,000 4,618,120
Fresno Water System Revenue, Water
Remediation Project, Series A,
FGIC Insured, 7.50% due
06/01/05.......................... 715,000 803,138
Kern High School District
Refunding, MBIA Insured, Series
1990-C, 6.25% due 08/01/12........ 1,200,000 1,305,960
Long Beach Harbor Revenue, AMT,
MBIA Insured, 5.25% due
05/15/25.......................... 2,000,000 1,751,580
Los Angeles, Harbor Development
Revenue, 7.60% due 10/01/18....... 140,000 168,024
Los Angeles, Wastewater System
Revenue Refunding, Series A, MBIA
Insured, 5.875% due 06/01/24...... 2,250,000 2,222,573
Series B, AMBAC Insured, 6.25% due
06/01/12.......................... 2,500,000 2,647,875
Los Angeles County, Public Works
Financing Authority, Lease Revenue
Refunding, Series B, MBIA Insured,
5.25% due 09/01/15................ 1,000,000 951,710
Los Angeles County, Transportation
Commission, Sales Tax Revenue,
Proposition C,
Second Series A, MBIA Insured,
6.25% due 07/01/13................ 8,980,000 9,521,584
Series B, AMBAC Insured, 6.50% due
07/01/13.......................... 1,750,000 1,829,975
Los Angeles Department of Water and
Power, Electric Plant Revenue,
7.125% due 05/15/30............... 1,875,000 1,932,113
MSR Public Power Agency, San Juan
Project Revenue, Series E, MBIA
Insured, 6.75% due 07/01/11....... 3,000,000 3,148,500
Manhattan Beach Unified School
District, Series A, FGIC Insured,
0% due 09/01/16................... 2,690,000 1,004,258
Marin Municipal Water District
Water Revenue, MBIA Insured, 5.65%
due 07/01/23...................... 2,000,000 1,918,240
Maritime Infrastructure Authority,
Airport Revenue, San Diego
University, Port District Airport,
AMT, AMBAC Insured, 5% due
11/01/20.......................... 9,500,000 8,165,915
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Metropolitan Water District,
Southern California Waterworks
Revenue, 5.50% due 07/01/19....... $2,500,000 $ 2,396,225
Modesto Irrigation District, COP,
Refunding and Capital Improvement,
Series B, 5.30% due 07/01/22...... 3,000,000 2,757,780
Montebello, Unified School
District, Capital Appreciation,
FGIC Insured, 0% due 08/01/17..... 2,150,000 753,855
Mountain View, Capital Improvements
Financing Authority Revenue, City
Hall Community Theatre, MBIA
Insured, 6.25% due 08/01/12....... 1,500,000 1,563,135
Natomas Unified School District
,1999 Refunding, MBIA Insured,
5.95% due 09/01/21................ 1,000,000 1,010,870
New Haven Unified School District
Refunding, MBIA Insured, 5.75% due
08/01/11.......................... 925,000 950,956
Northern California Power Agency
Public Power Revenue Refunding,
Hydroelectric Project 1, Series A,
AMBAC Insured, 7.50% due
07/01/23.......................... 50,000 58,973
MBIA Insured, 6.25% due
07/01/12.......................... 1,500,000 1,576,950
Oakland Building Authority Lease
Revenue, Elihu M. Harris, Series
A, AMBAC Insured, 5% due
04/01/23.......................... 2,330,000 2,018,735
Orange County, Sanitation
Districts, COP Numbers 1, 2, and
3, Series B, FGIC Insured, 6% due
08/01/16.......................... 2,000,000 2,087,880
Pacifica, COP, Street Improvement
Project, 5.875% due 11/01/29...... 1,105,000 1,077,883
Palm Springs Financing Authority,
Airport Passenger Facility Charge
Revenue, FSA Insured, 5.125% due
01/01/18.......................... 1,000,000 888,350
Palo Alto Unified School District,
Series B, 5.375% due 08/01/18..... 1,250,000 1,179,150
Pasadena, Electric Revenue, 4.75%
due 08/01/24...................... 1,000,000 821,470
Puerto Rico Commonwealth, Highway &
Transportation Revenue,
Infrastructure, 5% due 07/01/28... 2,000,000 1,664,620
Series A, 5% due 07/01/38......... 5,500,000 4,469,245
Puerto Rico Commonwealth Refunding,
5% due 07/01/27................... 1,000,000 834,530
Puerto Rico Electric Power
Authority, Power Revenue,
Series EE, 4.75% due 07/01/24..... 1,000,000 805,670
Series Z, 5.25% due 07/01/21...... 2,000,000 1,782,520
Puerto Rico Ports Authority,
American Airlines, Series A, AMT,
6.30% due 06/01/23................ 1,800,000 1,751,598
Sacramento Municipal Utility
District, Electric Revenue
Refunding, Series Z, FGIC Insured,
6.45% due 07/01/10................ 2,500,000 2,613,000
San Bernardino County, COP, Medical
Center Financing Project, 5% due
08/01/28.......................... 1,500,000 1,269,450
San Bernardino County
Transportation Authority Sales Tax
Revenue, Series A, FGIC Insured,
6% due 03/01/10................... 2,500,000 2,573,850
</TABLE>
21
<PAGE> 23
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
San Diego, Public Safety
Communication Project, 6.50% due
07/15/09.......................... $1,525,000 $ 1,687,672
San Diego, Water Utility Fund Net
System Revenue, COP, 4.75% due
08/01/28.......................... 1,000,000 809,410
San Francisco City and County,
Series 95 A & B, FGIC Insured,
6.50% due 06/15/11................ 2,220,000 2,287,688
Series E, 5.50% due 06/15/13...... 1,145,000 1,148,710
San Francisco City and County
Airport Commission, International
Airport Revenue Prerefunding,
Second Series,
Issue 1, AMBAC Insured, 6.30% due
05/01/11.......................... 1,200,000 1,270,884
Issue 1, AMBAC Insured, 6.50% due
05/01/13.......................... 800,000 850,768
San Francisco City and County
Airport Commission, International
Airport Revenue Refunding, Second
Series,
Issue 17, FSA Insured, 4.75% due
05/01/29.......................... 2,500,000 2,018,350
Issue 23B, FGIC Insured, 5% due
05/01/24.......................... 3,000,000 2,590,920
San Francisco City and County
Airport Commission, International
Airport Revenue Unrefunding,
Second Series,
Issue 1, AMBAC Insured, 6.30% due
05/01/11.......................... 1,800,000 1,894,158
Issue 1, AMBAC Insured, 6.50% due
05/01/13.......................... 1,200,000 1,266,456
San Francisco City and County
Public Utilities Commission Water
Revenue Refunding, Series A, 6%
due 11/01/15...................... 1,000,000 1,008,690
San Francisco City and County Sewer
Revenue Refunding, AMBAC Insured,
6% due 10/01/11................... 2,280,000 2,379,043
San Joaquin Hills Transportation
Corridor Agency, Toll Road
Revenue,
0%/7.40% due 01/01/07 (d)......... 1,000,000 997,270
0%/7.50% due 01/01/09 (d)......... 1,000,000 1,027,670
San Jose Redevelopment Agency Tax
Allocation, Merged Area
Redevelopment Project Refunding,
MBIA Insured, 5% due 08/01/20..... 2,500,000 2,193,200
San Mateo County, Joint Powers
Authority, Lease Revenue Capital
Projects, Series A, 5.125% due
07/15/32.......................... 2,145,000 1,841,783
Santa Barbara, Revenue COP,
Retirement Services, 5.75% due
08/01/20.......................... 2,000,000 1,952,760
Santa Clara Electric Revenue, 1991,
Series A, MBIA Insured, 6.25% due
07/01/19.......................... 3,750,000 3,923,813
Santa Margarita, Dana Point
Authority Revenue Refunding,
Improvement District 3, 3A, 4 and
4A, Series B, MBIA Insured,
7.25% due 08/01/07................ 500,000 571,370
7.25% due 08/01/13................ 2,000,000 2,357,040
Saugus Unified School District,
Series A, MBIA Insured, 5.65% due
09/01/11.......................... 2,035,000 2,084,491
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
South Whittier, Elementary School
District, Capital Appreciation,
Series A, FGIC Insured, 0% due
08/01/13.......................... $ 500,000 $ 233,035
Series A, FGIC Insured, 0% due
08/01/14.......................... 250,000 108,600
Southern California Public Power
Authority Power Project Revenue
Refunding, Hydroelectric Hoover
Uprating Project, Series A, 6.625%
due 10/01/05...................... 600,000 631,752
Southern California Rapid Transit
District, COP, Workers
Compensation Fund, MBIA Insured,
6% due 07/01/10................... 1,000,000 1,041,930
State, Refunding,
5% due 10/01/23................... 2,000,000 1,721,240
Series BH, AMT, 5.60% due
12/01/32.......................... 1,000,000 909,270
State Department of Water Resources
Central Valley Project Revenue,
Series J-2, 6.125% due 12/01/13... 2,225,000 2,281,003
Series J-3, Prerefunded, 5.50% due
12/01/23.......................... 810,000 822,855
Series J-3, Unrefunded, 5.50% due
12/01/23.......................... 2,190,000 2,049,117
Series O, 5% due 12/01/15......... 2,000,000 1,846,820
State Educational Facilities
Authority Revenue Refunding,
Los Angeles College Chiropractic,
5.60% due 11/01/17................ 1,810,000 1,669,417
Loyola Marymount University, MBIA
Insured, 5% due 10/01/22.......... 700,000 608,202
Pepperdine University, MBIA
Insured, 6.10% due 03/15/14....... 2,595,000 2,670,177
Santa Clara University, MBIA
Insured, 5.75% due 09/01/18....... 3,255,000 3,225,314
University of Southern California,
Series C, 5.125% due 10/01/28..... 1,000,000 866,180
State Health Facilities Financing
Authority Revenue Refunding,
Scripps Health, Series C, MBIA
Insured, 5% due 10/01/22.......... 500,000 432,220
Stanford Health Care, Series A,
FSA Insured, 5% due 11/15/28...... 1,000,000 845,590
State Housing Finance Agency
Revenue Home Mortgage,
Multi-Family Program, Series B,
AMT, AMBAC Insured, 6.05% due
08/01/16.......................... 2,000,000 2,003,860
Series B, AMT, AMBAC Insured,
5.25% due 02/01/28................ 2,000,000 1,736,720
Series H, AMT, 6.15% due
08/01/16.......................... 2,020,000 2,031,898
Series I, AMT, MBIA Insured, 5.65%
due 08/01/17...................... 2,400,000 2,301,840
Series K, MBIA Insured, 6.15% due
08/01/16.......................... 3,000,000 3,021,660
Series L, AMT, MBIA Insured, 5.55%
due 08/01/05...................... 300,000 304,059
Series Q, MBIA Insured, 5.85% due
08/01/16.......................... 1,000,000 1,004,310
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE> 24
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
State Pollution Control Financing
Authority, Pollution Control
Revenue, MBIA Insured, Pacific Gas
& Electric Co., Series B, AMT,
5.85% due 12/01/23................ $2,000,000 $ 1,930,080
State Public Works Board, Lease
Revenue, AMBAC Insured, Various
University of California Projects,
Series C, 5.125% due 09/01/22..... 1,475,000 1,307,765
State Rural Home Mortgage Finance
Authority, Single Family Revenue
Refunding, Series C, AMT, 7.50%
due 08/01/27...................... 880,000 961,796
Statewide Communities Development
Authority,
COP, 6% due 08/01/28.............. 2,000,000 1,816,100
Lease Revenue, United Airlines,
AMT, Series A, 5.70% due
10/01/33.......................... 4,000,000 3,410,960
Multi-Family Revenue, Archstone/
LeClub-G, 5.30% due 06/01/29...... 2,000,000 1,932,740
Residential-B, 5.20% due
12/01/29.......................... 2,500,000 2,376,225
Stockton Health Facilities Revenue,
Dameron Hospital, Series A, 5.70%
due 12/01/14...................... 200,000 181,044
Truckee, Donner Public Utility
District, COP, Water System
Improvement Project, MBIA Insured,
6.75% due 11/15/21................ 1,000,000 1,061,460
Turlock Irrigation District Revenue
Refunding, Series A, MBIA Insured,
6% due 01/01/10................... 1,000,000 1,073,060
Upland, COP, San Antonio Community
Hospital, 5% due 01/01/18......... 3,195,000 2,640,604
Vallejo Revenue Water Improvement
Project, Series B, FGIC Insured,
6.50% due 11/01/14................ 4,000,000 4,331,120
Virgin Islands Public Financing
Authority Revenue, Series A,
6.125% due 10/01/29............... 2,000,000 1,929,580
Westside Unified School District
Refunding, Series C, AMBAC
Insured, 6% due 08/01/14.......... 300,000 318,303
----------
Total Bonds (cost: $194,794,186) 191,359,911
----------
VARIABLE RATE DEMAND NOTES* - 4.80%
Irvine Improvement Bond ACT 1915,
Assessment District No. 94-15
Revenue, 4.20% due 09/02/20....... 400,000 400,000
Assessment District No. 94-13
Special Assessment, 4.20% due
09/02/22.......................... 700,000 700,000
Irvine Ranch Water District Numbers
105, 140, 240 & 250 General
Obligation Unlimited, 4.30% due
01/01/21.......................... 1,000,000 1,000,000
State Pollution Control Financing
Authority, Pollution Control
Revenue, Exxon Project, 4.30% due
12/01/12.......................... 500,000 500,000
Pacific Gas & Electric Corp.,
4.05% due 11/01/26................ 2,700,000 2,700,000
Shell Oil Co., Series B, 4.20% due
10/01/11.......................... 200,000 200,000
Statewide Communities Development
Authority, COP, 4.25% due
4/01/28........................... 2,200,000 2,200,000
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Statewide Development Authority,
COP, John Muir/Mt. Diablo Health,
4.25% due 08/15/27................ $2,100,000 $ 2,100,000
----------
Total Variable Rate Demand Notes (cost:
$9,800,000) 9,800,000
----------
TOTAL SECURITIES (COST: $204,594,186) - 98.48% 201,159,911
OTHER ASSETS AND LIABILITIES, NET - 1.52% 3,095,983
----------
NET ASSETS - 100.00% $204,255,894
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
BONDS - 90.38%
Alabama State Docks Department,
Docks Facilities Revenue, AMT,
MBIA Insured, 6.10% due
10/01/13.......................... $1,000,000 $ 1,023,700
Anchorage, Alaska, Electric Utility
Revenue Refunding, Senior Lien,
MBIA Insured, 8% due 12/01/10..... 985,000 1,191,456
Birmingham, Michigan, City School
District, FSA Insured, 4.75% due
11/01/24.......................... 2,000,000 1,619,640
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 1,074,641
Central Coast Water Authority,
California Revenue Refunding State
Water Project, Chicago, Illinois,
Metropolitan Water Reclamation
District, Greater Chicago Capital
Improvement, 7.25% due 12/01/12... 1,500,000 1,754,055
Chicago, Illinois, Park District
Aquarium & Museum, Series B, 6.50%
due 11/15/13...................... 1,500,000 1,630,590
Chicago, Illinois, Public Building
Commission Mortgage Revenue, Board
of Education, Series A, MBIA
Insured, 7.125% due 01/01/15...... 125,000 127,793
Cleveland, Ohio, Waterworks Revenue
First Mortgage Refunding, Series
F-92B, AMBAC Insured, 6.25% due
01/01/16.......................... 1,000,000 1,021,360
Colorado, Housing Finance
Authority, Single Family Program,
Senior Series A-1, AMT, 7.40% due
11/01/27.......................... 785,000 845,319
Colorado, Public Highway Authority,
E-470, Capital Appreciation,
Series B, MBIA Insured, 0% due
09/01/21.......................... 2,000,000 516,180
Colorado Springs, Colorado,
Utilities Revenue Refunding,
Series A, 6.50% due 11/15/15...... 2,000,000 2,098,480
Cook County, Illinois, MBIA
Insured, 7.25% due 11/01/07....... 620,000 701,846
</TABLE>
23
<PAGE> 25
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Dallas, Fort Worth, Texas,
International Airport Facility
Improvement, American Airlines,
AMT, 6.375% due 05/01/35.......... $1,000,000 $ 937,580
Delaware Valley, Pennsylvania,
Regional Financing Authority,
Local Government Revenue, Series
A, AMBAC Insured, 5.50% due
08/01/28.......................... 1,000,000 928,390
Foothill/Eastern Corridor Agency,
California, Toll Road Revenue,
5.75% due 01/15/40................ 1,000,000 888,100
Harris County, Texas, Toll Road,
Senior Lien, FGIC Insured, 5.375%
due 08/15/20...................... 1,000,000 910,040
Illinois Health Facilities
Authority Revenue Refunding,
Northwestern Medical Facilities
Foundation, MBIA Insured, 5.125%
due 11/15/28...................... 1,000,000 825,220
Sherman Hospital Project, MBIA
Insured, 6.75% due 08/01/11....... 1,000,000 1,051,970
Indiana State Office Building
Commission, Capital Complex
Revenue, Senate Avenue Parking,
Series A, MBIA Insured, 7.25% due
07/01/12.......................... 50,000 51,770
Indianapolis, Indiana, Airport
Authority Revenue, Special
Facilities, Federal Express Corp.,
AMT, 7.10% due 01/15/17........... 500,000 516,425
Jones County, Mississippi Hospital
Revenue, South Central Regional
Medical Center, 5.50% due
12/01/17.......................... 1,000,000 863,670
Kansas City, Kansas, Utility System
Revenue Refunding and Improvement,
FGIC Insured, 6.375% due
09/01/23.......................... 1,010,000 1,021,726
Kern, California, High School
District, Series 1990-C Election,
MBIA Insured, 6.25% due
08/01/10.......................... 545,000 597,614
Lakota, Ohio, Local School
District, AMBAC Insured, 7% due
12/01/09.......................... 1,740,000 1,986,123
Louisiana Public Facilities
Authority Hospital Revenue, Touro
Infirmary Project-Series A,
5.50% due 08/15/29................ 1,000,000 848,720
5.625% due 08/15/29............... 1,000,000 826,930
Maine State Housing Authority
Mortgage Purchase, Series A-1,
AMT, AMBAC Insured, 6.40% due
11/15/14.......................... 1,400,000 1,410,682
Maricopa County, Arizona, Unified
School District 69, Paradise
Valley Refunding, MBIA Insured,
6.35% due 07/01/10................ 600,000 652,758
Massachusetts State Health and
Educational Facilities Authority
Revenue, Northeastern University,
Series E, MBIA Insured, 6.55% due
10/01/22.......................... 500,000 514,940
Massachusetts State Industrial
Financing Agency Revenue,
Wentworth Institute of Technology,
5.65% due 10/01/18................ 500,000 455,980
</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, 0.00% due 06/15/29....... $4,000,000 $ 621,880
Prerefunded, Series A, 7.25% due
06/15/05.......................... 35,000 38,666
Prerefunded, Series A, 7.25% due
06/15/05.......................... 105,000 116,631
Unrefunded, Series A, 7.25% due
06/15/05.......................... 110,000 121,092
Metropolitan Transportation
Authority, New York,
Transportation Facilities Revenue,
Series 8, 5.375% due 07/01/21..... 1,000,000 889,710
Michigan State University Revenue,
Series A, 6.125% due 08/15/08..... 500,000 522,030
Mississippi Higher Education
Assistance Corp., Student Loan
Revenue, Series C, AMT, 6.05% due
09/01/07.......................... 625,000 627,375
Nevada Housing Division, Single
Family Mortgage, Series C, AMT,
6.60% due 04/01/14................ 910,000 917,353
New York City, New York, Industrial
Development Authority, Special
Facilities, United Airlines, Inc.,
AMT, 5.65% due 10/01/32........... 1,000,000 861,270
New York City, New York, Municipal
Water Finance Authority,
Series F, 6% due 08/01/11......... 500,000 515,170
Series I, 5.875% due 03/15/14..... 500,000 501,075
Series L, 5.75% due 08/01/12...... 500,000 504,000
New York State Dormitory Authority
Revenue, Pooled Capital Program,
FGIC Insured, 7.80% due
12/01/05.......................... 25,000 25,705
New York State Highway Authority,
Service Contract Revenue, Local
Highway and Building, 5% due
04/01/17.......................... 1,000,000 867,180
New York State Urban Development
Corp. Revenue, Correctional
Facilities, Series A, 5.50% due
01/01/16.......................... 1,000,000 936,340
Northern California Power Agency,
Public Power Revenue Refunding,
Hydroelectric Project 1, Series A,
MBIA Insured, 6.25% due
07/01/12.......................... 750,000 788,475
Philadelphia, Authority for
Industrial Development Revenue,
Franklin Institute Project, 5.20%
due 06/15/26...................... 1,000,000 821,080
Pinal County, Arizona, Unified
School District 43, Apache JCT,
Series A, FGIC Insured, 6.80% due
07/01/09.......................... 425,000 476,523
Puerto Rico Electric Power
Authority, Power Revenue, Series
Z, 5.25% due 07/01/21............. 1,000,000 891,260
Sacramento, California, Municipal
Utility District Electric Revenue
Refunding, Series Z, FGIC Insured,
6.45% due 07/01/10................ 600,000 627,120
Salt Lake City, Utah, Hospital
Revenue, IHC Hospitals, Inc.,
6.25% 02/15/23.................... 1,500,000 1,476,450
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE> 26
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- ---------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Superior, Wisconsin, Limited
Obligation Revenue Refunding,
Midwest Energy Resources, Series E,
FGIC Insured, 6.90% due 08/01/21... $ 500,000 $ 553,380
Tallassee, Alabama, Industrial
Development Board Revenue
Refunding, Dow United Technologies
Corp., Series B, 6.10% due
08/01/14........................... 1,000,000 1,071,030
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 1,059,770
Tulsa, Oklahoma, Airport
Transportation Revenue, American
Airlines, Inc., AMT, 7.375% due
12/01/20........................... 2,000,000 2,061,100
Utah State Board of Regents Student
Loan Revenue, Series N, AMT, AMBAC
Insured, 5.90% due 11/01/07........ 1,000,000 1,030,930
Vermont Educational & Health
Buildings Financing Agency, Norwich
University Project, 5.50% due
07/01/21........................... 1,000,000 890,330
Washington State Public Power Supply
System Refunding Revenue, Nuclear
Project 2,
Series A, 7.25% due 07/01/06....... 500,000 556,215
Series B, 7% due 07/01/12.......... 140,000 144,768
West Virginia School Building
Authority Revenue, Series A, MBIA
Insured, 7.25% due 07/01/15........ 50,000 51,772
Wisconsin State Health and
Educational Facilities Authority
Revenue,
Aurora Medical Group, Inc. Project,
FSA Insured,
5.75% due 11/15/07................. 500,000 516,990
6% due 11/15/10.................... 1,000,000 1,043,850
----------
Total Bonds (cost: $51,654,627) 51,020,218
----------
VARIABLE RATE DEMAND NOTES* - 8.50%
California Statewide Communities
Development Authority, COP, MBIA
Insured, 4.25% due 04/01/28........ 900,000 900,000
Farmington, New Mexico, Pollution
Control Revenue, Arizona Public
Service Co., Series B, 4.70% due
09/01/24........................... 300,000 300,000
Grand Forks, North Dakota, Hospital
Facilities Revenue, United Hospital
Facilities Obligated Group Project,
4.80% due 12/01/16................. 1,000,000 1,000,000
Lincoln County, Wyoming, Pollution
Control Revenue, Exxon Project,
Series D, 4.70% due 11/01/14....... 200,000 200,000
Long Island Power Authority, New
York Electric System Revenue,
Series 6, 4.75% due 05/01/33....... 1,500,000 1,500,000
</TABLE>
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Metropolitan Nashville Airport
Authority, Special Facilities
Revenue, American Airlines
Project, Series A, 4.80% due
10/01/12.......................... $ 800,000 $ 800,000
North Central Texas, Health
Facilities Development Corp.
Revenue, Presbyterian Medical
Center, Series C, MBIA Insured,
4.80% due 12/01/15................ 100,000 100,000
----------
Total Variable Rate Demand Notes (cost
$4,800,000) 4,800,000
----------
TOTAL SECURITIES (COST: $56,454,627) - 98.88% 55,820,218
OTHER ASSETS AND LIABILITIES, NET - 1.12% 633,613
----------
NET ASSETS - 100.00% $ 56,453,831
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS - 23.40%
Commercial - 2.94%
Asset Securitization Corp.,
Commercial Sub. Bonds, Series
1997-D5, Cl. B2, 6.93% due
02/14/41........................... $ 400,000 $ 256,250
First Chicago/Lennar Trust,
Commercial Collateral Strip
Interest, Series 1997-CHL1, Cl. D,
8.13% due 05/29/08 (a)(c)(f)....... 100,000 68,688
Cl. E, 8.13% due 02/28/11
(a)(c)(f).......................... 150,000 86,109
GMAC Commercial Mortgage
Securities, Inc., Series 1997-C1,
Cl. G, 7.414% due 09/30/06......... 120,000 84,488
Cl. X, Interest-Only Stripped
Mortgage-Backed Security, 1.6287%
due 07/15/27 (g)................... 975,000 73,430
GMAC Commercial Mortgage
Securities, Inc., Series 1997-C2,
Cl. F, 6.75% due 04/16/29.......... 100,000 59,594
Morgan Stanley Capital I, Inc.,
Commercial Sub. Bonds,
Series 1997-HF1, Cl. F, 6.86% due
02/15/10 (a)(c)(f)................. 50,000 38,281
Series 1997-RR, Cl. D, 7.74% due
04/30/39 (a)(c)(f)................. 200,000 140,500
Series 1997-RR, Cl. E, 7.67% due
04/30/39 (a)(c)(f)................. 75,000 48,445
Series 1997-RR, Cl. F, 7.74% due
04/30/39 (a)(c)(f)................. 175,000 89,305
Series 1997-XL1, Cl. G, 7.70% due
10/03/30 (a)(c)(f)................. 60,000 48,572
NC Finance Trust, Series 1999-I,
Cl. ECFD, 8.75% due 01/25/29....... 162,365 157,748
Nykredit AS, 7% Mortgage-Backed
Security, Series ANNI, due 10/01/29
(DKK).............................. 1,658,000 220,416
</TABLE>
25
<PAGE> 27
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Residential Asset Securitization
Trust, Series 1997-A2, Cl. A8,
7.75% due 04/25/27................. $ 500,000 $ 492,880
Salomon Brothers, Inc., Commercial
Mortgage Pass-Through Certificates,
Series 1998-1A, 5% due 12/15/00
(f)................................ 37,940 36,509
Salomon Brothers Mortgage
Securities VII, Series 1996-C1, Cl.
F, 9.18% due 02/20/26.............. 250,000 184,766
Structured Asset Securities Corp.,
Commercial Mtg. Pass-Through
Certificates, Series 1997-LL1, Cl.
F, 7.30% due 04/12/12 (a)(f)....... 50,000 41,531
Government Agency - 20.06%
Federal Home Loan Mortgage Corp.,
Interest-Only Stripped
Mortgage-Backed Security, Series
194, 6.50% due 04/01/28 (g)........ 5,346,899 1,782,223
Series 151, Cl. F, 9% due 05/15/21
(g)................................ 257,784 265,450
Federal National Mortgage
Association, Collateralized
Mortgage Obligations, Gtd. Real
Estate Mortgage Investment Conduit
Pass-Through Certificates, Series
1993-202, Class PH, 6.50% due
02/25/22........................... 1,000,000 973,180
Federal National Mortgage
Association, Interest-Only Stripped
Mortgage-Backed Security, Series
294, Class 2, 7% due 02/01/28
(g)................................ 1,515,511 490,667
Federal National Mortgage
Association, 6.50% due 05/01/29.... 388,878 366,393
7% due 07/01/26.................... 441,251 426,893
7% due 01/01/28.................... 1,033,222 999,279
7% due 01/01/27.................... 1,600,000 1,545,101
7.50% due 01/15/27................. 800,000 764,700
Government National Mortgage
Association,
7% due 03/15/28.................... 2,684,620 2,592,323
7% due 03/15/28.................... 552,212 533,227
7% due 03/15/28.................... 863,955 834,252
7% due 07/15/28.................... 846,289 836,768
7.50% due 08/16/28................. 2,144,000 2,133,280
Multi-Family - .40%
Criimi Mae, Inc., Trust I, Series
1996-C1, Cl. A2, 7.56% due 06/30/33
(a)................................ 100,000 93,063
Mortgage Capital Funding, Inc.,
Multi-family Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl.
G, 7.15% due 06/15/06 (a).......... 250,000 201,570
---------
Total Mortgage-Backed Obligations (cost:
$17,695,296) 16,965,881
---------
U.S. GOVERNMENT OBLIGATIONS - 10.39%
U.S. Treasury Bonds:
6.50% due 11/15/26................. 542,000 528,281
8.125% due 08/15/21................ 235,000 269,663
11.875% due 11/15/03 (o)........... 650,000 767,406
U.S. Treasury Notes:
5.50% due 01/31/03 (k)(l).......... 3,315,000 3,236,269
6% due 08/15/09 (o)................ 830,000 804,063
7% due 07/15/06 (o)................ 578,000 592,089
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
U.S. Treasury Strips:
Principal, 6.57% due 05/15/05
(m)(n)............................. $ 924,000 $ 652,177
6.85% due 02/15/19 (m)(n).......... 2,500,000 684,773
---------
Total U.S. Government Obligations (cost:
$7,929,920) 7,534,721
---------
FOREIGN GOVERNMENT
OBLIGATIONS - 16.98%
Argentina - 1.89%
Argentina (Republic of), Bonos de
Consolidacion de Deudas, Series
Previs 2, 5.62% Bonds due 04/01/01
(c)................................ 6,662 2,688
City of Buenos Aires, Series 3,
10.50% Notes due 05/28/04 (ARP).... 40,000 33,205
Global Bonds, 12.125% due
02/25/19........................... 42,000 44,310
Notes, 11.75% due 02/12/07 (ARP)... 110,000 100,114
Series BGL5, 11.375% Unsec. Unsub.
Notes due 01/30/17................. 215,000 213,925
Series FRB, 6.81% Debentures due
03/31/05 (c)....................... 105,600 95,568
Series Pro1, 2.87% Bonds due
04/01/07 (ARP) (c)................. 339,245 235,130
Series XW, 11% Bonds due
12/04/05........................... 420,000 413,700
Unsec. Unsub. Notes, 8.75% due
07/10/02 (ARP)..................... 260,000 234,033
Australia - .08%
Australian Postal Corp., 6% Unsec.
Notes due 03/25/09 (AUD)........... 100,000 58,921
Brazil - 1.74%
Brazil (Federal Republic of),
Capitalization Bonds, 20 years, 8%
due 04/15/14 (c)................... 468,299 350,054
Capitalization Bonds, 20 years,
7.08% due 04/15/14 (c)............. 2,966 2,217
Series L, 11.625% Bonds due
04/15/04........................... 165,000 165,000
Unsec. Global Bonds, 10.125% due
05/15/27........................... 96,000 82,080
15 Year New Money Bonds, 7% due
04/15/09 (c)....................... 281,000 224,800
18 Year Debt Conversion Bonds,
Bearer, Series L, 7% due 04/15/12
(c)................................ 337,000 250,223
18 Year Debt Conversion Bonds,
Registered, Series L, 5.94% due
04/15/12 (c)....................... 250,000 185,625
Bulgaria - .59%
Bulgaria (Republic of), Discount
Bonds, 6.50% due 07/28/24 (e)...... 430,000 343,463
Front-Loaded Interest Reduction
Bearer Bonds, Tranche A, 2.75% due
07/28/12 (e)....................... 70,000 50,400
Past Due Interest Bonds, 6.50%
Debentures due 07/28/11 (c)........ 40,000 31,500
Canada - .28%
Canada (Government of) Bonds,
Series A57, 7.25% due 06/01/03
(CAD).............................. 290,000 205,958
Colombia - .32%
Colombia (Republic of), Series NOV,
9.75% Bonds due 04/23/09........... 240,000 229,500
Finland - .27%
Finland (Government of), 9.50%
Bonds due 03/15/04 (EUR)........... 168,187 197,079
</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>
France (Government of) O.A.T.,
5.50% Bonds due 10/25/07 (EUR)..... $ 155,569 $ 158,599
Germany - .18%
Germany (Government of), 6.75% due
05/13/04 (EUR)..................... 120,000 129,057
Great Britain - .70%
United Kingdom Treasuries, 8% due
06/10/03 (GBP)..................... 300,000 508,409
Greece - .25%
Hellenic Republic, 8.60% Bonds due
03/26/08 (GRD)..................... 53,300,000 183,299
Hungary - .31%
Hungary (Government of) Bonds,
13.50% due 06/12/01 (HUF).......... 55,380,000 224,118
Indonesia - .08%
Indonesia (Republic of), 7.75%
Unsec. Bonds due 08/01/06.......... 70,000 58,906
Italy - 1.29%
Italy (Republic of) Treasury Bonds,
Buoni del Tesoro Poliennali, 6% due
11/01/07 (EUR)..................... 135,000 139,016
8.50% due 01/01/04 (EUR)........... 487,063 537,002
8.75% due 07/01/06 (EUR)........... 197,721 233,774
10.50% due 04/01/05 (EUR).......... 20,658 25,641
Ivory Coast - .09%
Ivory Coast (Government of) Past
Due Interest, 2% Bonds due 03/29/18
(a)(e)............................. 135,713 35,623
2% Bonds due 03/29/18 (e).......... 134,000 28,810
Japan - .59%
Japan (Government of), Ten Year
Issue, Series 137, 6.50% Bonds due
03/20/01 (JPY)..................... 41,000,000 430,664
Jordan - .01%
Hashemite (Kingdom of Jordan)
Bonds, Series DEF, 6% due 12/23/23
(e)................................ 10,000 6,625
Mexico - 2.51%
United Mexican States Bonds,
6.63% due 12/31/19................. 1,990,000 238,500
11.375% due 09/15/16............... 850,000 955,400
11.50% due 05/15/26................ 130,000 154,336
United Mexican States
Collateralized Fixed Rate Par
Bonds,
Series B, 6.25% due 12/31/19....... 250,000 196,250
Series W-A, 6.25% due 12/31/19..... 350,000 274,750
Nigeria - .16%
Nigeria (Federal Republic of)
Promissory Notes, 5.09% due
01/05/10 (e)....................... 295,634 112,341
Norway - .86%
Norway (Government of), 9.50% Bonds
due 10/31/02 (NOK)................. 4,600,000 622,996
Panama - .42%
Panama (Republic of), Interest
Reduction Bonds, 18 years, 4.25%
due 07/17/14 (e)................... 248,000 194,293
Past Due Interest, 20 years, 5.82%
Debentures due 07/17/16 (c)........ 144,166 113,351
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Peru - .69%
Peru (Republic of), Past Due
Interest, 4.50% Bonds due 03/07/17
(e)................................ $ 200,000 $ 137,500
Zero Coupon, Sr. Notes due
02/28/16........................... 761,786 360,858
Poland - .75%
Poland (Republic of) Bonds, Series
0601, 12% due 06/12/01 (PLZ)....... 916,000 213,261
Series 1000, 13% due 10/12/00
(PLZ).............................. 1,128,000 265,728
Series 1003, 12% due 10/12/03
(PLZ).............................. 270,000 63,905
Russia - 1.05%
Russia (Government of), Interest
Notes, Series US, 6.06% debentures
due 12/15/15 (b)(c)................ 2,017 361
Principal Loans Debentures, 24
Years, 6.91% due 12/15/20 (b)(c)... 1,330,000 209,475
Russian Federation, 8.75% Unsub.
Bonds due 07/24/05................. 350,000 210,438
Russian Federation, 11% Unsec.
Unsub. Bonds due 07/24/18.......... 151,000 87,580
Russian Federation, Registered,
11.75% Sr. Unsec. Unsub. Bonds due
06/10/03........................... 206,000 158,620
Russian Federation, Registered,
12.75% Unsec. Unsub. Bonds due
06/24/28........................... 143,000 93,665
South Africa - .44%
South Africa (Republic of), Series
153, 13% Bonds due 08/31/10
(ZAR).............................. 2,061,000 322,075
Spain - .17%
Spain (Kingdom of), 4.50% Bonds due
07/30/04 (EUR)..................... 105,877 104,214
6% Bonds due 01/31/08 (EUR)........ 19,232 19,887
Turkey - .18%
Turkey (Republic of), 12.375%
Unsec. Sr. Unsub. Bonds due
06/15/09........................... 125,000 134,063
Venezuela - .85%
Venezuela (Republic of), 7%
Debentures due 12/18/07 (c)........ 190,475 150,138
9.25% Unsec. Bonds due 09/15/27.... 648,000 427,680
13.625% Bonds due 08/15/18......... 40,000 36,041
Vietnam - .01%
Vietnam (Government of), 3% Par
Bonds due 03/12/28 (f)............. 12,000 3,960
---------
Total Foreign Government Obligations
(cost: $12,415,511) 12,310,702
---------
LOAN PARTICIPATIONS - .55%
Algeria Trust I Loan Participation
Agreement, 6.69% due 09/04/06
(f)................................ 16,000 12,320
Algeria Trust III Loan
Participation Agreement, 1.06% due
03/04/10 (JPY) (f)................. 16,018,000 80,713
6.81% due 03/04/10 (f)............. 121,000 85,910
Central Bank Asia Loan
Participation Agreement, Series 4,
Gtd. 8.625% Notes due 08/25/02
(f)................................ 70,000 61,250
</TABLE>
27
<PAGE> 29
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Participation Agreement, Tranche
A, 6.84% due 01/01/09 (c)(f)...... $ 132,857 $ 119,571
Tranche B, 6.83% due 01/01/04
(c)(f).......................... 40,000 38,100
---------
Total Loan Participations (cost:
$344,314).......................... 397,864
---------
CORPORATE BONDS AND NOTES - 44.01%
Aerospace - .23%
Fairchild Corp. (The), Cl. A,
10.75% Sr. Sub. Notes due
04/15/09........................... 150,000 127,313
Greater Toronto Airport, 5.40%
Debentures due 12/03/02 (CAD)...... 55,000 36,907
Air Travel - .39%
Amtran, Inc., 10.50 Sr. Notes due
08/01/04 (a)....................... 100,000 100,000
Atlas Air, Inc., 9.375% Sr. Notes
due 11/15/06....................... 50,000 48,250
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 80,469
Apparel & Textiles - .21%
Indorayon International Finance Co.
BV, 10% Gtd. Unsec. Unsub. Notes
due 03/29/01 (b)(f)................ 100,000 20,000
Panolam Industries International,
11.50% Sr. Sub. Notes due 02/15/09
(a)................................ 50,000 50,875
Unifrax Investment Corp., 10.50%
Sr. Notes due 11/01/03............. 50,000 49,063
William Carter Co., 10.375% Sr.
Sub. Notes due 12/01/06............ 35,000 31,500
Automotive - .79%
Collins & Aikman Products Co.,
11.50% Gtd. Sr. Sub. Notes due
04/15/06........................... 50,000 49,625
Hayes Wheels International, Inc.,
Series B, 9.125% Sr. Sub. Notes due
07/15/07........................... 50,000 48,875
11% Unsec. Sr. Sub. Notes due
07/15/06........................... 100,000 104,500
HDA Parts System, Inc., 12% Sr.
Sub. Notes due 08/01/05............ 200,000 182,000
Oxford Automotive, Inc., 10.125%
Sr. Sub. Notes due 06/15/07 (f).... 200,000 188,000
Banks - 2.96%
Allgemeine HypothekenBank AG,
Series 501, 5% Sec. Bonds due
09/02/09 (EUR)..................... 200,000 189,779
Bayerische Vereinsbank, Series 661,
5% Sec. Bonds due 07/28/04 (EUR)... 76,477 76,376
DePfa Deutsche Pfandbriefbank AG,
5.50% Sec. Global Bonds due
01/15/10 (EUR)..................... 140,000 137,747
Export Credit Bank of Turkey, 7.56%
due 08/18/00 (c)(f)................ 250,000 244,790
Financiera Energetica Nacional,
9.375% Unsec. Unsub. Notes due
06/15/06 (a)....................... 100,000 84,481
Hypothekenbank In Essen AG,
Registered, 3.50% Sec. Global Bonds
due 03/17/04 (EUR)................. 1,110,000 1,047,235
Industrial Bank of Japan Preferred
Capital Co. (The) LLC, 8.79% Bonds
due 12/29/49 (a)(c)................ 125,000 115,877
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Ongko International Finance Co. BV,
10.50% Gtd. Notes due 03/29/04
(a)(b)............................. $ 40,000 $ 1,300
Shoeshone Partners Trust, 8% Sr.
Notes due 04/20/02 (a)(f).......... 250,000 245,639
Broadcast, Radio & TV - 2.99%
Adelphia Communications Corp.,
8.375% Sr. Notes due 02/01/08...... 25,000 23,188
9.25% Sr. Notes due 10/01/02....... 200,000 199,000
9.375% Sr. Notes due 11/15/09...... 200,000 196,000
10.50% Sr. Notes due 07/15/04...... 50,000 52,125
AMFM Operating, Inc., 12.625%
Debentures due 10/31/06 (h)........ 31,600 35,866
Azteca Holdings SA, 11% Sr. Sec.
Notes due 06/15/02................. 35,000 31,413
Bresnan Communication Co. Holdings,
0%/9.25% Sr. Discount Notes due
02/01/09 (d)....................... 100,000 69,000
CSC Holdings, Inc., 10.50% Sr. Sub.
Debentures due 05/15/16............ 50,000 55,500
EchoStar DBS Corp., 9.375% Unsec.
Sr. Notes due 02/01/09............. 400,000 402,000
Emmis Communications Corp., 8.125%
Sr. Sub. Notes due 03/15/09........ 150,000 142,500
Falcon Holdings Group L.P.,
0%/9.285% Debentures due 04/15/10
(d)................................ 100,000 74,875
Optel, Inc., Series B, 13% Sr notes
due 02/15/05 (b)................... 25,000 18,500
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 69,247
Spanish Broadcasting System, Inc.,
9.625% Sr. Sub. Notes due
11/01/09........................... 200,000 201,000
TeleWest Communications PLC,
0%/9.875% Sr. Discount Notes due
04/15/09 (a)(d) (GBP).............. 100,000 100,774
0%/11% Sr. Discount Debentures due
10/01/07 (d)....................... 65,000 60,613
Time Warner Telecom LLC, 9.75%
Unsec. Sr. Notes due 07/15/08...... 50,000 51,500
TV Azteca SA de CV, Series A,
10.125% Sr. Notes due 02/15/04..... 100,000 89,250
United International Holdings,
Inc., 0%/10.75% Sr. Discount Notes
due 02/15/08 (d)................... 75,000 48,000
Young Broadcasting, Inc., 8.75% Sr.
Sub. Debentures due 06/15/07....... 100,000 94,750
Series B, 9% Sr. Sub. Notes due
01/15/06........................... 50,000 48,101
Building & Construction - .40%
Kaufman & Broad Home Corp., 7.75%
Sr. Notes due 10/15/04............. 100,000 98,375
Nortek, Inc., 9.125% Sr. Notes due
09/01/07........................... 200,000 193,500
Building Materials - .07%
Falcon Building Products, Inc.,
9.50% Sr. Sub. Notes due
06/15/07........................... 50,000 48,500
Capital Goods - .21%
Aki Holdings, Inc., 0%/13.50% Sr.
Discount Debentures due 07/01/09
(d)................................ 50,000 23,625
10.50% Sr. Notes due 07/01/08...... 50,000 44,500
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE> 30
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Sub. Notes due 03/01/08............ $ 100,000 $ 87,000
Chemicals & Allied Products - 1.31%
ClimaChem, Inc., 10.75% Gtd. Sr.
Sub. Unsec. Bonds due 12/01/07..... 50,000 12,500
Huntsman ICI Chemicals LLC, 0% Sr.
Discount Notes due 12/31/09 (a).... 150,000 45,188
10.125% Sr. Sub. Notes due 07/01/09
(a)................................ 100,000 103,500
Hydrochem Industrial Services,
Inc., 10.375% Sr. Sub. Notes due
08/01/07........................... 50,000 42,875
Lyondell Chemical Co., 9.875% Sr.
Sec. Notes due 05/01/07............ 200,000 204,000
10.875% Sr. Sub. Notes due
05/01/09........................... 100,000 103,000
NL Industries, Inc., 11.75% Sr.
Sec. Notes due 10/15/03............ 40,000 41,400
PCI Chemicals Canada, Inc., 9.25%
Sr. Sec. Notes due 10/15/07........ 50,000 38,500
Pioneer Americas Acquisition Corp.,
9.25% Sr. Sec. Notes due
06/15/07........................... 25,000 19,750
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 75,375
Sterling Chemicals, Inc., 11.75%
Sr. Unsec. Sub. Notes due
08/15/06........................... 150,000 112,500
Series B, 12.375% Sr. Sec. Notes
due 07/15/06....................... 100,000 103,500
Commercial Services - .07%
Kindercare Learning Centers, Inc.,
9.50% Sr. Sub. Notes due
02/15/09........................... 50,000 48,750
Computers - .15%
Unisys Corp., 11.75% Sr. Notes due
10/15/04........................... 100,000 109,250
Conglomerates - .14%
Jordan Industries, Series C,
10.375% Sr. Notes due 08/01/07..... 100,000 100,000
Consumer Products - .44%
Bell Sports, Inc., 11% Sr. Sub
Notes due 08/15/08................. 110,000 110,000
Fruit of the Loom, Inc., 8.875%
Gtd. Sr. Unsec. Notes due 04/15/06
(b)................................ 100,000 5,000
Holmes Products Corp., 9.875% Gtd.
Sr. Sub. Unsec. Bonds due
11/15/07........................... 25,000 18,250
Icon Health & Fitness, Inc., 12%
Gtd. Notes due 09/27/05 (a)(f)..... 37,000 20,350
Iron Mountain, Inc., 8.75% Sr. Sub.
Notes due 09/30/09................. 50,000 47,625
10.125% Sr. Sub. Notes due
10/01/06........................... 50,000 50,875
Revlon Consumer Products, Inc.,
8.625% Sr. Sub. Notes due
02/01/08........................... 50,000 25,000
9% Sr. Notes due 11/01/06.......... 10,000 7,500
TAG Heuer International SA, 12% Sr.
Sub. Notes due 12/15/05 (f)........ 33,000 36,187
Diversified Financial - .45%
AMRESCO, Inc., Series 97-A, 10% Sr.
Sub. Notes due 03/15/04............ 75,000 47,250
Series 98-A, 9.875% Sr. Sub. Notes
due 03/15/05....................... 100,000 63,000
Dresdner Funding Trust II, 5.79%
Sub. Notes due 06/30/11 (EUR)
(a)................................ 200,000 179,618
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Veritas Capital Trust, 10% Gtd.
Bonds due 01/01/28................. $ 50,000 $ 37,500
Diversified Media - .54%
Chancellor Media Corp., Series B,
8.13% Sr. Sub. Notes due
12/15/07........................... 50,000 49,750
8.75% Sr. Sub. Notes due
06/15/07........................... 50,000 50,375
10.50% Sr. Sub. Notes due
01/15/07........................... 90,000 97,650
IPC Magazines Group PLC, 9.625%
Bonds due 03/15/08 (GBP) (f)....... 50,000 49,267
Lamar Advertising Co., 9.625%
Unsec. Sr. Sub. Notes due
12/01/06........................... 100,000 102,000
Sinclair Broadcast Group, Inc.,
8.75% Sr. Sub. Notes due
12/15/07........................... 50,000 46,125
Electrical Utilities - .23%
Calpine Corp., 8.75% Sr. Notes due
07/15/07........................... 115,000 115,288
10.50% Sr. Notes due 05/15/06...... 50,000 52,750
Central Termica Guemes SA, 12%
Unsec. Bonds due 11/26/01 (a)(b)... 50,000 2,375
Electronics - .59%
Amkor Technology, Inc., 9.25% Sr.
Notes due 5/01/06 (a).............. 300,000 292,500
Fairchild Semiconductor Corp.,
10.375% Sr. Sub. Notes due
10/01/07........................... 50,000 51,375
Wavetek Corp., 10.125% Sr. Sub.
Notes due 06/15/07................. 100,000 82,125
Energy Services & Producers - .83%
Gothic Energy Corp., Series B,
0%/14.125% Sec. Sr. Discount Notes
due 05/01/06 (d)................... 125,000 43,125
Gothic Production Corp., 11.125%
Sr. Sec. Notes due 05/01/05 (a).... 50,000 42,500
Grant Geophysical, Inc., 9.75% Sr.
Notes due 02/15/08................. 90,000 56,700
Great Lakes Carbon Corp., 10.25%
Sr. Sub. Notes due 05/15/08........ 150,000 142,500
P&L Coal Holdings Corp., 9.625% Sr.
Sub. Notes due 05/15/08............ 100,000 98,500
Ram Energy, Inc., 11.50% Sr. Notes
due 02/15/08....................... 210,000 96,600
Universal Compression, Inc.,
0%/9.875% Sec. Discount Notes due
02/15/08 (d)....................... 200,000 124,000
Environmental Management - .67%
Allied Waste North America, Inc.,
Series B, 7.875% Sr. Notes due
01/01/09........................... 250,000 220,938
10% Sr. Sub. Notes due 08/01/09
(a)................................ 300,000 268,500
Financial - 1.80%
AB Spintab, Series 169, 5.50% Bonds
due 09/17/03 (SEK)................. 600,000 69,307
Asat Finance LLC, Units (each unit
consists of $1,000 principal amount
of 12.50% Sr. Notes and one warrant
to purchase common shares)
(a)(i)............................. 50,000 53,750
BankUnited Capital Trust, 10.25%
Bond due 12/31/26.................. 100,000 90,000
CB Richard Ellis Service, 8.875%
Unsec. Sr. Sub. Notes due
06/01/06........................... 50,000 44,500
Charter Communications Holdings
LLC, 0%/9.92% Sr. Discount Notes
due 04/01/11 (d)................... 400,000 234,500
</TABLE>
29
<PAGE> 31
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Federal Home Loan Bank, 5.625%
Unsec. Unsub. Notes due 06/10/03
(GBP).............................. 20,000 31,064
GMAC, Series EC, 6.875% Notes due
09/09/04........................... 140,000 222,787
Local Financial Corp., 11% Sr.
Notes due 09/08/04 (a)............. 50,000 52,000
Netia Holdings BV, 0%/11% Sr. Gtd.
Discount Notes due 11/01/07 (d).... 50,000 16,719
10.25% Sr. Gtd. Notes due
11/01/07........................... 25,000 21,250
13.50% Gtd. Notes due 06/15/09
(EUR) (a).......................... 200,000 207,267
Polytama International Finance BV,
11.25% Sec. Notes due 06/15/07
(f)................................ 47,191 6,843
RBF Finance Co., 11% Gtd. Sr. Sec.
Notes due 03/15/06................. 125,000 133,125
SBS Agro Finance BV, 10.25% Bonds
due 07/21/00 (b)(f)................ 75,000 3,000
Southern Pacific Funding Corp.,
11.50% Sr. Notes due 11/01/04
(b)................................ 50,000 23,500
Sovereign Bancorp, Inc., 10.50%
Unsec. Sr. Notes due 11/15/06...... 50,000 51,000
Food & Beverages - .49%
Aurora Foods, Inc., 8.75% Sr. Sub.
Notes due 07/01/08................. 100,000 95,250
Del Monte Foods Co., 0%/12.50% Sr.
Discount Notes due 12/15/07 (d).... 35,000 26,950
Doane Products Co., 9.75% due
05/15/07........................... 73,000 72,635
Purina Mills, Inc., 9% Sr. Sub.
Notes due 03/15/10 (b)............. 50,000 12,500
Shoppers Food Warehouse Corp.,
9.75% Sr. Sec. Notes due
06/15/04........................... 20,000 21,200
Smithfield Foods, Inc., 7.625% Sr.
Sub. Notes due 02/15/08............ 100,000 90,000
Sparkling Spring Water Group, Ltd.,
11.50% Sr. Sub. Notes due
11/15/07........................... 50,000 40,500
Gas Utilities - .07%
AmeriGas Partners, L.P., 10.125%
Sr. Notes due 04/15/07............. 50,000 51,000
Health Care/Supplies &
Services - .86%
Charles River Laboratories, Inc.,
Units (each unit consists of $1,000
principal amount of 13.50% Sr. Sub.
Notes due 10/01/09 and one warrant
to purchase 3.942 common shares.)
(a)(i)............................. 100,000 104,000
Fresenius Medical Cap Trust II,
7.875% Gtd. Sec. Trust Preferred
Bonds due 02/01/08................. 190,000 175,275
Fresenius Medical Cap Trust III,
7.375% Gtd. Sec. Trust Preferred
Bonds due 02/01/08 (DEM)........... 10,000 5,144
ICN Pharmaceutical, Inc., 8.75% Sr.
Notes due 11/15/08 (a)............. 100,000 95,500
Oxford Health Plans, Inc., 11% Sr.
Notes due 05/15/05................. 100,000 96,000
Tenet Healthcare Corp., 8.625%
Unsec. Sr. Sub. Notes due
01/15/07........................... 100,000 96,500
Unilab Finance Corp., 12.75% Sr.
Sub. Notes due 10/01/09 (a)........ 50,000 51,750
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Homebuilders/Real Estate - .40%
D. R. Horton, Inc., 8% Unsec. Gtd.
Sr. Notes due 02/01/09............. $ 50,000 $ 45,750
Saul (B.F.) Real Estate Investment
Trust, 9.75% Sr. Sec. Notes due
04/01/08........................... 165,000 150,769
Webb (Del E.) Corp., 10.25% Unsec.
Sr. Sub. Debentures due 02/15/10... 100,000 97,250
Hotel/Gaming - 1.89%
Apcoa, Inc., 9.25% Sr. Sub. Notes
due 03/15/08....................... 50,000 35,000
Aztar Corp., 8.875% Sr. Sub. Notes
due 05/15/07....................... 200,000 192,000
Capstar Hotel Co., 8.75% Sr. Sub.
Notes due 08/15/07................. 25,000 23,031
Casino Magic of Louisiana Corp.,
Series B, 13% due 08/15/03......... 40,000 45,150
Empress Entertainment, Inc., 8.125%
Sr. Sub. Notes due 07/01/06........ 150,000 151,500
Florida Panthers Holdings, 9.875%
Sr. Sub. Notes due 04/15/09........ 150,000 145,500
HMH Properties, Inc., Series C,
8.45% due 12/01/08................. 75,000 69,375
Hollywood Casino Corp., 11.25% Sec.
Sr. Notes due 05/01/07............. 150,000 156,750
Horseshoe Gaming LLC, 9.375% Sr.
Sub. Notes due 06/15/07............ 75,000 74,625
Intrawest Corp., 9.75% Sr. Notes
due 08/15/08....................... 75,000 73,500
Isle of Capri Casinos, 8.75% Sr.
Sub. Notes due 04/15/09............ 150,000 138,000
Jupiters, Ltd., 8.50% Sr. Notes due
03/01/06........................... 75,000 71,625
Meristar Hospitality Corp., 8.75%
Sr. Sub. Notes due 08/15/07........ 50,000 46,000
Mohegan Tribal Gaming Authority,
8.125% Sr. Notes due 01/01/06...... 100,000 97,000
8.75% Sr. Sub. Notes due
01/01/09........................... 50,000 49,250
Industrial - 2.63%
Equinix, Inc., Units (each unit
consists of $1,000 principal amount
of 13% Sr. Notes due 12/01/07 and
one warrant to purchase 11.255
shares of common stock) (a)(i)..... 50,000 51,000
Federal-Mogul Corp., 7.875% Notes
due 07/01/10....................... 125,000 111,167
Fleming Companies, Inc., 10.625%
Sr. Sub. Notes due 07/31/07........ 170,000 153,425
Focal Communications, Inc.,
0%/12.125% Sr. Discount Notes due
02/15/08 (d)....................... 130,000 84,500
Globe Manufacturing Corp., Series
B, 10% Gtd. Sr. Sub. Notes due
08/01/08........................... 100,000 48,000
International Wire Group, Inc.,
Series B, 11.75% Sr. Sub. Notes due
06/01/05........................... 65,000 67,113
Key Plastics, Inc., 10.25% Sr. Sub.
Notes due 03/15/07................. 50,000 19,000
Leviathan Gas Pipeline/Leviathan
Finance Corp., Series B, 10.375%
Sr. Sub. Notes due 06/01/09........ 200,000 206,000
Packaged Ice, Inc., 9.75% Unsec.
Sr. Notes due 02/01/05............. 25,000 22,875
Pantry, Inc. (The), 10.25% Sr. Sub.
Notes due 10/15/07................. 50,000 48,500
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE> 32
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Pentacon, Inc., 12.25% Sr. Sub.
Notes due 04/01/09................. $ 100,000 $ 90,000
Phillips Van-Heusen Corp., 9.50%
Sr. Sub. Notes due 05/01/08........ 100,000 93,000
Pycsa Panama SA., 10.28% Sr. Sec.
Bonds due 12/15/12 (a)(f).......... 44,055 25,992
Roller Bearing Co. of America,
Inc., 9.625% Sr. Sub. Notes due
06/15/07........................... 125,000 113,125
Safety-Kleen Corp., 9.25% Sr. Notes
due 05/15/09....................... 150,000 145,125
Shaw Communications, Inc., 8.54%
Debentures due 09/30/27 (CAD)...... 80,000 49,559
Styling Technology Corp., 10.875%
Sr. Sub. Notes due 07/01/08 (f).... 35,000 12,250
Verio, Inc., 10.375% Unsec. Sr.
Notes due 04/01/05................. 100,000 102,000
11.25% Unsec. Sr. Notes due
12/01/08........................... 250,000 262,500
WRC Media Corp., Units (each unit
consists of $1,000 principal amount
of 12.75% Sr. Sub. Notes due
11/15/09 and 1.353 shares of common
Stock) (a)(i)...................... 200,000 198,500
Industrial Services - .43%
Comforce Operating, Inc., 12% Sr.
Notes due 12/01/07................. 50,000 30,625
Fisher Scientific International,
Inc., 9% Sr. Sub. Notes due
02/01/08........................... 100,000 95,875
Great Lakes Dredge & Dock Corp.,
11.25% Sr. Sub. Notes due
08/15/08........................... 110,000 114,950
United Rentals, Inc., 9% Notes due
04/01/09........................... 75,000 70,875
Information Technology - 4.00%
Cellnet Data Systems, Inc., 0%/14%
Unsec. Sr. Discount Notes due
10/01/07 (d)....................... 45,000 4,669
Covad Communications Group, Inc.,
0%/13.50% Sr. Discount Notes due
03/15/08 (d)....................... 150,000 94,500
Crown Castle International Corp.,
0%/10.375% Sr. Discount Notes due
05/15/11 (d)....................... 350,000 218,750
0%/10.625% Sr. Discount Notes due
11/15/07 (d)....................... 75,000 56,344
CTI Holdings SA, 0%/11.50% Sr.
Notes due 04/15/08 (d)............. 50,000 28,750
Details, Inc., 10% Sr. Sub. Notes
due 11/15/05....................... 25,000 23,000
Exodus Communications, Inc., 10.75%
Sr. Notes due 12/15/09 (a)......... 100,000 101,750
11.25% Sr. Notes due 07/01/08...... 430,000 443,975
Global Crossing Holdings, Ltd.,
9.625% Sr. Notes due 05/15/08...... 300,000 300,000
GST Telecommunications, Inc./GST
Network Funding, Inc., 0%/10.25%
Sr. Discount Notes due 05/01/08
(d)................................ 85,000 41,013
ICG Services, Inc., 0%/10% Sr.
Discount Notes due 02/15/08 (d).... 35,000 18,463
KMC Telecom Holdings, Inc.,
0%/12.50% Unsec. Sr. Discount Notes
due 02/15/08 (d)................... 50,000 28,500
13.50% Sr. Notes due 05/15/09
(a)................................ 200,000 200,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Nextel Communications, Inc., Sr.
Discount Notes, 0%/9.95% due
02/15/08 (d)....................... $ 75,000 $ 52,500
0%/10.65% due 09/15/07 (d)......... 450,000 335,250
Nextlink Communications, Inc., 9%
due 03/15/08....................... 100,000 94,000
9.625% Sr. Notes due 10/01/07...... 125,000 121,875
10.75% Sr. Notes due 11/15/08...... 50,000 51,500
10.75% Unsec. Sr. Notes due
06/01/09........................... 200,000 205,500
Pinnacle Holdings, Inc., 0%/10% Sr.
Discount Notes due 03/15/08 (d).... 100,000 65,500
Psinet, Inc., 10% Senior Notes due
02/15/05........................... 150,000 148,313
Satelites Mexicanos SA, 10.125% Sr.
Notes due 11/01/04................. 50,000 34,000
SBA Communications Corp., 0%/12%
Sr. Discount Notes due 03/01/08
(d)................................ 200,000 118,000
Wam!Net, Inc., 0%/13.25% Sr.
Discount Notes due 03/01/05 (d).... 200,000 116,000
Insurance - .09%
Veritas Holdings, GMBH, 9.625% Sr.
Notes due 12/15/03................. 65,000 63,375
Leisure & Entertainment - 1.47%
AMC Entertainment, Inc., 9.50% Sr.
Unsec. Sub. Notes due 02/01/11..... 100,000 88,500
Premier Cruise, Ltd., 11% Sr. Notes
due 03/15/08 (a)(b)................ 50,000 11,750
Premier Parks, Inc., 0%/10% Sr.
Discount Notes due 04/01/08 (d).... 50,000 34,500
9.25% Sr. Notes due 04/01/06....... 50,000 49,125
9.75% Sr. Notes due 06/15/07....... 200,000 199,000
Regal Cinemas, Inc., 8.875% Unsec.
Sr. Sub. Notes due 12/15/10........ 200,000 141,000
9.50% Unsec. Sr. Sub. Notes due
06/01/08........................... 250,000 188,750
SFX Entertainment, Inc., 9.125%
Gtd. Notes due 12/01/08............ 200,000 190,000
9.125% Sr. Sub. Notes due
02/01/08........................... 125,000 117,813
Six Flags Entertainment Corp.,
8.875% Sr. Notes due 04/01/06...... 50,000 48,813
Manufacturing - .73%
Applied Power, Inc., 8.75% Sr. Sub.
Notes due 04/01/09................. 75,000 73,406
Axia, Inc., 10.75% Sr. Sub. Notes
due 07/15/08....................... 50,000 45,813
Ball Corp., 7.75% Sr. Notes due
08/01/06........................... 50,000 48,750
8.25% Sr. Sub. Notes due
08/01/08........................... 50,000 48,000
BE Aerospace, Inc., 9.50% Unsec.
Sr. Sub. Notes due 11/01/08........ 50,000 47,000
Grove Worldwide LLC, 9.25% Sr. Sub.
Notes due 05/01/08................. 50,000 14,000
Insilco Holding Co., Series B, 12%
Gtd. Sr. Sub. Notes due 08/15/07... 20,000 19,975
Moll Industries, 10.50% Sr. Sub.
Notes due 07/01/08................. 100,000 40,000
SC International Services, Inc.,
9.25% Sr. Sub. Notes due
09/01/07........................... 50,000 47,000
</TABLE>
31
<PAGE> 33
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Tenneco, Inc., 11.625% Sr. Sub Notes
due 10/15/09 (a)................... $ 50,000 $ 51,000
Terex Corp., 8.875% Unsec. Sub. Sr.
Notes due 04/01/08................. 100,000 94,500
Metals/Mining - .56%
Centaur Mining & Exploration, Ltd.,
11% Gtd. Sr. Notes due 12/01/07.... 25,000 24,781
International Utility Structures,
Inc., 10.75% Sr. Sub. Notes due
02/01/08........................... 25,000 21,000
Kaiser Aluminum & Chemical Corp.,
12.75% Sr. Sub. Notes due
02/01/03........................... 125,000 125,625
Metallurg Holdings, Inc., 0%/12.75%
Sr. Discount Notes due 07/15/08
(d)................................ 100,000 32,000
Metallurg, Inc., 11% Sr. Notes due
12/01/07........................... 225,000 202,500
Oil & Gas - .75%
Denbury Management, Inc., 9% Sr.
Sub. Notes due 03/01/08............ 150,000 136,500
Forcenergy, Inc., 9.50% Unsec. Sr.
Sub. Notes due 11/01/06 (b)........ 50,000 40,688
Frontier Oil Corp., 11.75% Sr.
Notes due 11/15/09................. 50,000 49,250
Ocean Rig Norway AS, 10.25% Sr.
Sec. Gtd. Notes due 06/01/08....... 100,000 83,000
Parker Drilling Co., Series B,
9.75% Sr. Notes due 11/15/06....... 100,000 97,750
R&B Falcon Corp., 12.25% Unsec. Sr.
Notes due 03/15/06................. 50,000 54,500
Stone Energy Corp., 8.75% Sr. Sub.
Notes due 09/15/07................. 85,000 82,875
Paper & Forest Products - 2.31%
Fletcher Challenge, Ltd., 8.05%
Bonds due 06/15/03 (NZD)........... 30,000 15,567
10% Cv. Unsec. Sub. Notes due
04/30/05 (NZD)..................... 5,000 2,607
14.50% Cv. Sub. Notes due 09/30/00
(NZD).............................. 85,000 46,890
Gaylord Container Corp., Series B,
9.75% Unsec. Sr. Notes due
06/15/07........................... 100,000 94,250
Packaging Corp. of America, 9.625%
Gtd. Notes due 04/01/09............ 150,000 153,188
Repap New Brunswick, Inc., 9% First
Priority Sec. Sr. Notes due
06/01/04........................... 50,000 49,000
10.625% Second Priority Sec. Sr.
Notes due 04/15/05................. 150,000 139,500
Riverwood International Corp.,
10.625% Sr. Notes due 08/01/07..... 300,000 309,000
10.875% Gtd. Unsec. Sr. Sub. Notes
due 04/01/08....................... 100,000 98,500
SD Warren Co., Series B, 12% Sr.
Sub. Notes due 12/15/04............ 150,000 156,375
14% Debentures due 12/15/06 (h).... 254,926 285,517
Tembec Industries, Inc., 8.625%
Gtd. Unsec. Sr. Notes due
06/30/09........................... 200,000 199,500
URS Corp., 12.50% Sr. Sub. Notes
due 05/01/09....................... 100,000 102,500
US Timberland Co. LP, 9.625% Sr.
Notes due 11/15/07................. 25,000 22,875
Printing, Publishing & Allied Products - .10%
Premier Graphics, Inc., 11.50% Sr.
Notes due 12/01/05................. 100,000 70,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Restaurants - .24%
Ameriking, Inc., 10.75% Sr. Unsec.
Notes due 12/01/06................. $ 150,000 $ 138,000
Family Restaurants, Inc., 9.75% Sr.
Notes due 02/01/02................. 75,000 35,250
Retail - .36%
Amazon.com, Inc., 0%/10% Unsec. Sr.
Discount Notes due 05/01/08 (d).... 150,000 95,250
Blount, Inc., 13% Sr. Sub. Notes
due 08/01/09 (a)................... 100,000 105,500
Boyds Collection, Ltd., 9% Sr. Sub.
Notes due 05/15/08................. 60,000 57,000
Security Services - .18%
Protection One Alarm Monitoring,
Inc., 6.75% Cv. Gtd. Sr. Sub. Notes
due 09/15/03....................... 100,000 47,500
7.375% Gtd. Sr. Sub. Notes due
08/15/05........................... 100,000 79,500
Specialty Retailing - .20%
Eye Care Centers of America, Inc.,
9.125% Sr. Sub. Notes due
05/01/08........................... 75,000 52,500
Finlay Fine Jewelry Corp., 8.375%
Sr. Notes due 05/01/08............. 50,000 46,250
Home Interior & Gifts, Inc.,
10.125% Sr. Sub. Notes due
06/01/08........................... 50,000 42,750
Steel - .45%
AK Steel Corp., 7.875% Sr. Notes
due 02/15/09....................... 50,000 47,250
9.125% Sr. Notes due 12/15/06...... 100,000 101,750
California Steel Industries, 8.50%
Sr. Notes due 04/01/09............. 75,000 72,000
National Steel Corp., 9.875% First
Mortgage due 03/01/09.............. 100,000 103,000
Supermarkets - .04%
Pathmark Stores, 0%/10.75% Jr. Sub.
Notes due 11/01/03 (d)............. 130,000 15,600
12.625% Sub. Notes due 06/15/02.... 50,000 16,500
Telecommunications - 9.65%
Adelphia Business Solutions, Inc.,
12% Sr. Sub. Notes due 11/01/07.... 75,000 79,875
Arch Communications, Inc., 12.75%
Sr. Notes due 07/01/07............. 50,000 39,563
Clearnet Communications, Inc.,
0%/14.75% Sr. Unsec. Discount Notes
due 12/15/05 (d)................... 15,000 14,719
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)..................... 100,000 101,000
0%/12% Unsec. Sr. Discount Notes
due 12/15/06 (d)................... 50,000 43,000
7.625% Bonds due 07/31/08 (DEM).... 200,000 101,758
8.875% Sr. Notes due 11/30/07
(DEM).............................. 25,000 13,419
10.125% Sr. Notes due 11/30/07
(GBP).............................. 35,000 59,707
Comunicacion Celular SA, 0%/14.125%
Unsec. Sr. Deferred Bonds due
03/01/05 (a)(d).................... 100,000 47,750
</TABLE>
The accompanying notes are an integral part of these financial statements.
32
<PAGE> 34
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Convergent Communications, Inc.,
Units (each unit consists of $1,000
principal amount of 13% Sr. Notes
due 04/01/08 and four warrants to
purchase 10.8 shares of common
stock) (i)......................... $ 25,000 $ 17,563
Diamond Cable Communications PLC,
0%/11.75% Sr. Discount Notes due
12/15/05 (d)....................... 200,000 189,000
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 41,250
Global Telesystems Group, Inc.,
10.50% Unsec. Sr. Bonds due
12/01/06 (EUR) (a)................. 50,000 51,062
GST USA, Inc., 0%/13.875% Gtd. Sr.
Sec. Discount Notes due 12/15/05
(d)................................ 65,000 48,100
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) (b)(i)..... 50,000 23,000
Insight Midwest LP/Insight Capital,
Inc., 9.75% Sr. Notes Due 10/01/09
(a)................................ 100,000 103,250
Intermedia Communications, Inc.,
8.50% Sr. Notes due 01/15/08....... 75,000 68,625
8.60% Sr. Notes due 06/01/08....... 90,000 82,350
Series B, 8.875% Sr. Notes due
11/01/07........................... 175,000 162,750
Jazztel PLC, 13.25% Sr. Notes due
12/15/09 (EUR) (a)................. 150,000 151,677
Level 3 Communications, Inc.,
0%/10.50% Sr. Discount Notes due
12/01/08 (d)....................... 75,000 45,375
9.125% Unsec. Sr. Notes due
05/01/08........................... 250,000 235,625
Loral Space & Communications, Ltd.,
9.50% Sr. Notes due 01/15/06....... 50,000 45,000
McLeodUSA, Inc., 8.125% Sr. Notes
due 02/15/09....................... 135,000 125,888
8.375% Sr. Notes due 03/15/08...... 250,000 236,250
9.25% Sr. Notes due 07/15/07....... 40,000 39,950
Metrocall, Inc., 10.375% Sr. Sub.
Notes due 10/01/07 (f)............. 50,000 31,000
Metromedia Fiber Network, Inc., 10%
Sr. Notes due 11/15/08............. 150,000 153,375
10% Sr. Notes due 12/15/09......... 250,000 256,250
Metromedia International Group,
Inc., 10.50% Unsec. Notes due
09/30/07 (f)....................... 72,825 34,228
Microcell Telecommunications, Inc.,
0%/10.125% Sr. Discount Notes due
10/15/07 (CAD) (d)................. 100,000 46,165
0%/12% Sr. Discount Notes due
06/01/09 (d)....................... 250,000 160,938
Millicom International Cellular SA,
0%/13.50% Sr. Discount Notes due
06/01/06 (d)....................... 160,000 128,000
NTL, Inc., 0%/9.75% Sr. Notes due
04/01/08 (d)....................... 100,000 69,000
0%/9.75% Sr. Notes due 04/15/09
(GBP) (d).......................... 200,000 180,156
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
0%/10.75% Sr. Unsec. Unsub. Notes
due 04/01/08 (GBP) (a)(d).......... $ 50,000 $ 53,367
7% Cv. Sub. Notes due 12/15/08..... 100,000 264,000
9.875% Sr. Notes due 11/15/09
(a)................................ 50,000 50,811
10% Sr. Notes due 02/15/07......... 100,000 103,250
Omnipoint Corp., Series A, 11.625%
Sr. Notes due 08/15/06............. 300,000 318,000
11.50% Sr. Notes due 09/15/09
(a)................................ 315,000 338,625
Orange PLC, 8% Sr. Notes due
08/01/08........................... 100,000 100,875
8.75% Unsec. Sr. Bonds due
06/01/06........................... 250,000 258,750
ORBCOMM Global LP/ORBCOMM Capital
Corp., Series B, 14% Sr. Notes due
08/15/04........................... 75,000 54,000
Orion Networks Systems, Inc.,
0%/12.50% Sr. Discount Notes due
01/15/07 (d)....................... 200,000 92,000
Price Communications Wireless,
Inc., 9.125% Sec. Notes due
12/15/06........................... 100,000 101,250
11.75% Unsec. Sr. Sub. Notes due
07/15/07........................... 50,000 54,500
PTC International Finance BV,
0%/10.75% Unsec. Sub. Notes due
07/01/07 (d)(f).................... 34,000 22,780
PTC International Finance II SA,
11.25% Gtd. Sr. Sub. Notes due
12/01/09 (a) (EUR)................. 50,000 51,439
Qwest Communications International,
Inc., 0%/9.47% Sr. Sub. Notes due
10/15/07 (d)....................... 140,000 113,400
RCN Corp., 10.125% Unsec. Sr. Notes
due 01/15/10....................... 150,000 150,015
RSL Communications PLC, 0%/10%
Bonds due 03/15/08 (DEM) (d)....... 50,000 23,021
Rural Cellular Corp., 9.625% due
05/15/08........................... 100,000 102,250
Spectrasite Holdings, Inc., 0%/12%
Sr. Discount Notes due 07/15/08
(d)................................ 200,000 119,500
Tele1 Europe BV, 11.875% Sr. Notes
due 12/01/09 (a)................... 75,000 76,970
Teligent, Inc., 11.50% Unsec. Sr.
Notes due 12/01/07................. 100,000 96,500
United Pan-Europe Communications
NV, 10.875% Sr. Notes due
08/01/09........................... 300,000 303,750
11.25% Sr. Notes due 11/01/09
(a)................................ 250,000 257,826
US Unwired, Inc., 0%/13.375% Sr.
Discount Notes due 11/01/09
(a)(d)............................. 250,000 146,250
USA Mobile Communications, Inc. II,
14% Sr. Notes due 11/01/04......... 65,000 59,475
Viatel, Inc., 11.25% Sec. Sr. Notes
due 04/15/08....................... 150,000 148,875
Voicestream Wireless
Co./Voicestream Wireless Holdings
Co., 10.375% Sr. Notes due 11/15/09
(a)................................ 300,000 309,000
Transportation - .64%
Budget Group, Inc., 9.125% Sr.
Notes due 04/01/06................. 100,000 93,000
Millenium Seacarriers, Inc., 12%
Gtd. Sr. Sec. First Priority Ship
Mortgage Notes due 07/15/05 (f).... 100,000 57,000
</TABLE>
33
<PAGE> 35
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
----------- ---------
<S> <C> <C>
Navigator Gas Transportation PLC,
10.50% First Priority Ship Mortgage
Units (each unit consists of $1,000
principal amount of 12% 2nd
priority ship mortgage notes due
06/30/07 and 7.66 warrants)
(a)(i)............................. $ 50,000 $ 3,500
Notes due 06/30/07 (a)............. 75,000 34,500
TFM SA de CV, 10.25% Sr. Gtd. Bonds
due 06/15/07....................... 75,000 69,000
Transtar Holdings LP/Transtar
Capital Corp., Series B, 0%/13.375%
Sr. Discount Notes due 12/15/03
(d)................................ 200,000 204,000
---------
Total Corporate Bonds and Notes (cost:
$34,476,245) 31,908,618
---------
COMMON STOCKS - .31%
<CAPTION>
shares
------------
<S> <C> <C>
Horizon Group Properties, Inc.(b)... 29 98
Optel, Inc. (b)..................... 85 1
Price Communications Corp. (b)...... 4,523 125,783
S.F. Holdings Group, Inc., C1. C
(a)(b).............................. 37 0
Viatel, Inc. (b).................... 401 21,454
Weatherford International, Inc.
(b)................................. 1,895 75,682
---------
Total Common Stocks (cost: $121,428) 223,018
---------
PREFERRED STOCKS -- 1.62%
Concentrix Network Corp., 13.50%
Exchangeable (h)................... 57 56,287
Dobson Communications, 13%
Exchangeable (h)................... 206 224,540
E. Spire Communications, 12.75%
(h)................................ 56 11,200
Eagle-Picher Holdings, Series B,
0%/11.75% Cum. Exchangeable
(d)(f)............................. 10 46,000
ICG Holdings, Inc., 14.25%
Exchangeable (h)................... 37 33,670
Nebco Evans Holdings Co., 11.25%
Exchangeable (h)................... 1,209 13,299
Nextel Communications, Inc., Series
E, 11.125% Exchangeable (h)........ 57 57,000
NEXTLINK Communications, Inc., 14%
Cum. (h)........................... 5,616 300,456
Paxson Communications Corp., 13.25%
Exchangeable (h)................... 50,000 51,125
PRIMEDIA, Inc., Series E, 9.20%..... 100 9,150
Series G, 8.625% Exchangeable...... 3,000 261,000
Rural Cellular Corp., 11.375% (h)... 56 57,400
S.F. Holdings Group, Inc., Series B,
13.75% (h)......................... 10 50,000
---------
Total Preferred Stocks (cost: $1,405,671) 1,171,127
---------
<CAPTION>
units
------------
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES - .18%(b)
Argentina Wts., Exp. 02/00.......... 325 65
Bell Technology Group Wts., Exp.
05/05.............................. 50 1,150
Comunicacion Celular SA Wts., Exp.
11/03 (f).......................... 100 5,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- --------------------------------------------------------------------
value
units (note 1)
----------- -----------
<S> <C> <C>
Convergent Communications, Inc.
Wts., Exp. 04/08................... 100 $ 1,213
Firstworld Communications, Inc.
Wts., Exp. 04/08 (a)(f)............ 75 9,000
Gothic Energy Corp. Wts., Exp. 01/03
(f)................................ 1,304 13
Gothic Energy Corp. Wts., Exp. 09/04
(f)................................ 1,400 1,400
Gothic Energy Corp. Wts., Exp. 05/05
(f)................................ 991 99
HF Holdings Wts., Exp. 09/00 (f).... 361 5,419
Insilco, Inc. Wts., Exp. 08/07...... 20 0
KMC Telecom Holdings, Inc., Wts. Exp
04/08 (a)(f)....................... 100 300
Long Distance International, Inc.
Wts., Exp 04/08 (f)................ 50 25
Loral Orion Network Systems, Inc.
Wts., Exp 01/07.................... 100 1,200
Millenium Seacarriers, Inc. Wts.,
Exp. 07/05 (a)(f).................. 100 100
Occidente Y Caribe Celular SA Wts.,
Exp. 03/04 (f)..................... 400 6,000
Petersburg Long Distance, Inc. Wts.,
Exp. 01/01(a)...................... 50 1
Price Communication Corp. Wt., Exp
08/07 (f).......................... 516 86,172
Republic of Venezuela Wts., Exp.
04/20.............................. 1,250 0
Wam!Net, Inc. Wts., Exp. 03/05
(a)................................ 600 13,650
---------
Total Rights, Warrants and Certificates (cost:
$38,750) 130,807
---------
<CAPTION>
face amount
or units (j)
------------
<S> <C> <C>
STRUCTURED INSTRUMENTS - 3.02%
Citibank, Mexican Linked Notes,
23.95% due 11/05/01 (MXP).......... 2,231,202 236,543
26.10% due 10/29/01 (MXP).......... 150,000 154,470
Citibank, Poland Zloty Linked Notes,
Series 1, 16.10% due 11/03/00...... 635,543 152,315
Credit Suisse First Boston Corp.,
Russian GKO Linked Notes,
25% due 12/15/01 (f) (RUR)......... 216,000 1,817
25% due 02/06/02 (f) (RUR)......... 63,050 918
25% due 05/22/02 (f) (RUR)......... 63,050 840
25% due 06/05/02 (f) (RUR)......... 63,050 835
25% due 09/18/02 (f) (RUR)......... 63,050 777
25% due 10/09/02 (f) (RUR)......... 63,050 828
25% due 01/22/03 (f) (RUR)......... 63,050 804
25% due 02/05/03 (f) (RUR)......... 63,050 790
25% due 05/21/03 (f) (RUR)......... 63,050 740
25% due 06/04/03 (f) (RUR)......... 63,050 739
25% due 09/17/03 (f) (RUR)......... 896,820 10,072
25% due 10/08/03 (f) (RUR)......... 63,050 756
25% due 01/21/04 (f) (RUR)......... 63,050 708
Credit Suisse First Boston Corp.,
Russian OFZ Linked Notes, 15% due
02/23/00 (f) (RUR)................. 3,241,000 84,026
25% due 06/05/02 (f) (RUR)......... 744,730 9,859
25% due 06/04/03 (f) (RUR)......... 742,108 8,693
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE> 36
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Deutsche Bank Capital Corp.,
Indonesian Rupiah Linked Notes,
13.67% due 06/30/00................ 120,000 $ 115,608
Indonesian Rupiah/Japanese Yen
Linked Notes, 0% due 08/17/01...... 85,000 59,424
Philippine Peso/Japanese Yen Linked
Notes, 10.55% due 05/12/00......... 30,000 23,763
Deutsche Morgan Grenfell, Russian
Federal Loan Floating Rate Linked
Notes, 14% due 09/27/00 (f)
(RUR).............................. 880,000 15,818
18.34% due 02/23/00 (f)............ 80,000 50,384
18.60% due 10/25/00 (f)............ 80,000 37,648
Deutsche Morgan Grenfell, Turkish
Lira Linked Notes, 0% due
05/24/00........................... 188,871 133,739
JP Morgan Securities, Inc., Leverage
Notes on The Emerging Markets Bond
Index, 9.50% due 07/14/00.......... 600,258 674,445
Salomon Brothers, Inc., Brazil
Linked Notes, 6% due 04/02/03
(f)................................ 150,000 119,435
Indonesian Rupiah Linked Notes,
29.55% due 04/12/00................ 10,000 12,831
Indonesian Rupiah Linked Notes,
32.50% due 04/06/00................ 30,000 38,452
Turkish Lira Linked Notes, 91.86%
due 08/24/00....................... 80,000 67,714
Turkish Lira Linked Notes, 92.10%
due 08/24/00....................... 80,000 67,593
Turkish Lira Linked Notes, 94.10%
due 08/24/00....................... 101,438 80,220
Standard Chartered Bank, Philippine
Peso/ Japanese Yen Linked Notes,
16.04% due 05/10/00................ 35,000 25,176
---------
Total Structured Instruments (cost: $2,864,783) 2,188,780
---------
</TABLE>
<TABLE>
<CAPTION>
contracts/
face
strike subject
date price to call
----- ----------- -----------
<S> <C> <C> <C> <C>
CALL OPTIONS PURCHASED - .05%
Emerging Market Bond
Index Call Option
(f).................. 01/00 349.73 EMBI 400 31,514
Korean Won Call
Option............... 06/00 1,100 KRW 401,500,000 6,023
----------
Total Call Options Purchased (cost: $24,890) 37,537
----------
PUT OPTIONS PURCHASED - .09%
Euro Dollar Put Option
(f).................. 01/00 1.02 EUR 2,560,000 58,611
Hong Kong Dollar Put
Option............... 01/00 7.894 HKD 631,520 368
Hong Kong Dollar Put
Option............... 01/00 7.894 HKD 631,520 368
Japanese Yen Put
Option............... 03/00 105.95 JPY 36,000,000 3,312
----------
Total Put Options Purchased (cost: $31,542) 62,659
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
- ---------------------------------------------------------------------
value
face amount (note 1)
---------- ----------
<S> <C> <C>
SHORT-TERM SECURITIES - 1.04%
Triparty Repurchase Agreement dated
December 31, 1999 with Prudential
Securities, Inc., effective yield
of 2%, due January 3, 2000,
collateralized by FHLMC, 7%,
December 1, 2029 with a value of
$772,860.......................... $ 757,405 $ 757,405
----------
Total Short-Term Securities (cost: $757,405) 757,405
----------
TOTAL INVESTMENTS (COST: $78,105,755) - 101.64% 73,689,119
OTHER ASSETS AND LIABILITIES, NET -- (1.64)% (1,185,663)
----------
NET ASSETS - 100.00% $ 72,503,456
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas U.S. Government and Mortgage Securities Fund
- --------------------------------------------------------------------
value
face amount (note 1)
---------- ----------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES - 86.33%
Federal Home Loan Mortgage Corp.
7.00% due 2023 - 2029............. $5,421,336 $ 5,252,496
7.50% due 2023 - 2024............. 10,786,048 10,716,338
8.00% due 2024 - 2026............. 4,877,422 4,929,939
8.50% due 2017 - 2026............. 1,232,571 1,267,207
9.00% due 2017 - 2024............. 2,361,944 2,457,529
9.50% due 2016 - 2021............. 491,301 517,173
10.00% due 2017 - 2020............ 49,554 52,890
10.50% due 2018 - 2020............ 60,013 64,040
Federal National Mortgage Assn.
6.50% due 2023 - 2029............. 52,044,550 49,041,658
7.00% due 2023 - 2029............. 48,599,585 47,000,787
7.50% due 2017 - 2029............. 22,182,885 21,952,146
8.00% due 2024 - 2028............. 23,734,764 23,939,886
8.50% due 2014 - 2027............. 3,300,489 3,389,102
9.00% due 2021 - 2025............. 2,764,860 2,877,359
9.50% due 2020.................... 24,985.... 26,396
Government National Mortgage Assn.
7.50% due 2022 - 2024............. 4,414,613 4,385,939
8.00% due 2023 - 2025............. 1,443,150 1,460,744
8.50% due 2016 - 2020............. 25,978 26,875
----------
Total U.S. Government Agencies (cost:
$184,605,707) 179,358,504
----------
COLLATERALIZED MORTGAGE OBLIGATIONS - 12.54%
6.50% GNMA Floating Collateralized
Mortgage Obligation due 2020...... 6,000,000 5,568,720
6.50% GNMA Floating Collateralized
Mortgage Obligation due 2025...... 3,000,000 2,738,430
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2026...... 3,000,000 2,723,430
6.50% FNMA Floating Collateralized
Mortgage Obligation due 2026...... 1,489,000 1,352,191
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,803,120
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,772,500
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,775,000
</TABLE>
35
<PAGE> 37
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas U.S. Government and
Mortgage Securities Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... $4,000,000 $ 3,513,720
6.50% FNMA Floating Collateralized
Mortgage Obligation due 2028...... 3,000,000 2,653,110
6.50% GNMA Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,817,500
8.50% FNMA Floating Collateralized
Mortgage Obligation due 2017...... 319,785 329,420
----------
Total Collateralized Mortgage Obligations (cost:
$28,964,093).................................. 26,047,141
----------
SHORT-TERM INVESTMENTS - 3.33%
Repurchase Agreement dated December
31, 1999 with DLJ Securities
Corp., Inc., effective yield of
4.06%, due January 3, 2000 with
respect to $5,001,552 FNMA, 7.49%,
June 1, 2025 with a value of
$5,026,560........................ $4,928,000 4,928,000
U.S. Treasury Bill, 5.19% due
01/13/00.......................... $1,991,070 1,991,070
----------
Total Short-Term Investments (cost: $6,919,070) 6,919,070
----------
TOTAL SECURITIES (COST: $220,488,870) - 102.20% 212,324,715
OTHER ASSETS AND LIABILITIES, NET - (2.20)% (4,576,004)
----------
NET ASSETS - 100.00% $207,748,711
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund
- --------------------------------------------------------------------
value
face amount (note 1)
----------- -----------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER - 20.09%
Guam, Power Authority, AMBAC
Insured, 3.40% due 03/09/00........ $ 800,000 $ 800,000
Los Angeles, Department of Water and
Power, Electric Plant Revenue,
3.60% due 02/09/00................. 3,900,000 3,900,000
3.60% due 02/11/00................. 1,700,000 1,700,000
San Francisco, Bay Area Transit
Financing Authority, Series C,
3.55% due 02/11/00................. 1,500,000 1,500,000
---------
Total Tax-Exempt Commercial Paper (cost:
$7,900,000) 7,900,000
---------
FIXED RATE BONDS AND NOTES - 28.40%
Fremont, Unified School District,
Tax and Revenue Anticipation, 4%
due 07/28/00....................... 1,000,000 1,003,590
Kern, High School District, Tax and
Revenue Anticipation, 4.00% due
07/06/00........................... 1,500,000 1,504,673
Los Angeles, Waste Water System
Revenue, Series A, 7% due
02/01/20........................... 3,000,000 3,068,904
Moreno Valley, Unified School
District, Tax and Revenue
Anticipation, 4% due 06/30/00...... 1,000,000 1,002,865
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- -----------
<S> <C> <C>
Puerto Rico, Industrial, Medical and
Environmental Pollution Control
Facilities Financing Authority,
Reynolds Metals Co. Project, 3.50%
due 09/01/13....................... $ 700,000 $ 700,000
State Health Facilities Financing
Authority Revenue Refunding, Health
Dimensions-A, 7.50% due 05/01/15... 2,500,000 2,585,955
State Pollution Control Financing
Authority, Pollution Control
Revenue Refunding,
Chevron USA, Inc. Project, 3.80%
due 11/15/01....................... 1,000,000 999,692
Chevron USA, Inc. Project, 3.10%
due 05/15/02....................... 300,000 300,000
---------
Total Fixed Rate Bonds and Notes (cost:
$11,165,679) 11,165,679
---------
VARIABLE RATE DEMAND NOTES* - 50.95%
Alameda County, Industrial
Development Agency, Tool Family
Partnership, AMT, Series A, 4.45%
due 07/01/27....................... 1,000,000 1,000,000
Azusa, Multi-Family Housing Revenue,
Pacific Glen Apartments Project,
5.15% due 07/15/15................. 1,200,000 1,200,000
Glendale, Revenue Reliance
Development, Public Parking, 3.50%
due 12/01/14....................... 500,000 500,000
Irvine Improvement Bond Act 1915,
Assessment District Number 94-15,
4.20% due 09/02/20................. 200,000 200,000
Assessment District Number 97-16,
4.20% due 09/02/22................. 1,600,000 1,600,000
Irvine Ranch, Water District, 4.20%
due 08/01/16....................... 400,000 400,000
Lassen Municipal Utility District,
Revenue Refunding, Series A, AMT,
FSA Insured, 5.30% due 05/01/08.... 800,000 800,000
Los Angeles County, Multi-Family
Housing Revenue, Malibu Meadows
Project-B, 4.90% due 04/15/28...... 1,500,000 1,500,000
Los Angeles, Unified School
District, COP, Belmont Learning
Complex, Series A, 5% due
12/01/17........................... 1,830,000 1,830,000
Orange County Sanitary District, COP
#1-3, 5-7 & 11, AMBAC Insured,
4.20% due 08/01/16................. 800,000 800,000
San Jacinto, Unified School
District, COP, School Facility
Board Funding Program, FSA Insured,
5% due 09/01/27.................... 1,460,000 1,460,000
San Jose, Multi-Family Mortgage
Revenue, Somerset Park, Series A,
AMT, 4.50% due 11/01/17............ 1,600,000 1,600,000
San Leandro, Multi-Family, Carlton
Plaza Project, Series A, 5.25% due
10/01/27........................... 1,000,000 1,000,000
State Educational Facilities
Authority Revenue, Foundation for
Educational Achievement, Series A,
5.15% due 07/01/26................. 1,000,000 1,000,000
State Health Facilities Financing
Authority Revenue Refunding,
Scripps Hospital, Series B, 4.95%
due 10/01/21....................... 1,500,000 1,500,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
36
<PAGE> 38
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
- --------------------------------------------------------------------
value
face amount (note 1)
----------- -----------
<S> <C> <C>
Statewide Communities Development
Authority, Multi-Family, Sunrise of
Moraga, Series A, AMT, 5.25% due
07/01/27........................... $ 500,000 $ 500,000
Statewide Communities Development
Corp. Revenue, Industrial
Development, Florestone, AMT, 5.5%
due 05/01/09....................... 740,000 740,000
Setton Properties Project, AMT,
5.5% due 10/01/10.................. 700,000 700,000
Tri-Valley Industrial Development,
Series F, AMT, 4.85% due
12/01/10........................... 700,000 700,000
Union City, Multi-Family, Mission
Sierra Housing Project, Series A,
4.90% due 07/15/29................. 1,000,000 1,000,000
---------
Total Variable Rate Demand Notes (cost:
$20,030,000) 20,030,000
---------
TOTAL SECURITIES (COST: $39,095,679) - 99.44% 39,095,679
OTHER ASSETS AND LIABILITIES, NET - .56% 220,817
---------
NET ASSETS - 100.00% $39,316,496
---------
---------
</TABLE>
<TABLE>
<CAPTION>
Atlas National Municipal Money Fund
- ---------------------------------------------------------------------
value
face amount (note 1)
--------- --------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER - 15.54%
Austin, Texas, Travis and Williamson
Counties, Combined Utility, Series A,
3.80% due 02/18/00................... $200,000 $ 200,000
Dallas Area Rapid Transit, Sales Tax
Revenue, Series A, 3.85% due
02/11/00............................. 200,000 200,000
Florida, Sunshine, Government
Financing Community Revenue, Series
1986, 3.50% due 02/01/00............. 100,000 100,000
Illinois, Health Facilities Financing
Authority Revenue, Rush Presbyterian,
St. Luke's Medical, Series 89A, 3.85%
due 02/09/00......................... 200,000 200,000
--------
Total Tax-Exempt Commercial Paper (cost: $700,000) 700,000
--------
FIXED RATE BONDS AND NOTES - 29.29%
Chicago, Illinois, Tender Notes,
Series A, 3.90% due 01/03/02......... 100,000 100,000
Clark County, Nevada, Airport Revenue,
Series B-2, 3.70% due 07/01/29....... 100,000 100,000
Gastonia, North Carolina, General
Obligation, MBIA Insured, 5.30% due
05/01/00............................. 100,000 100,033
Illinois, Regional Transportation
Authority, Refunding, 4% due
06/01/00............................. 100,000 100,000
Killeen, Texas, Waterworks and Sewer
Revenue, 5% due 08/15/00............. 100,000 100,600
Lake County, Indiana, General
Obligation, FSA Insured, 4.125% due
07/15/00............................. 150,000 150,174
Milwaukee, Wisconsin, General
Obligation, Series F, 5% due
11/15/00............................. 100,000 100,338
</TABLE>
<TABLE>
--------- --------
<CAPTION>
Atlas National Municipal Money Fund (continued)
- ---------------------------------------------------------------------
value
face amount (note 1)
<S> <C> <C>
Mississippi State, Small Enterprise,
General Obligation, Series D, AMT,
7.75%, due 07/01/00.................. $155,000 $ 157,419
Texas, Tax and Revenue Anticipation,
Series A, 4.50% due 08/31/00......... 100,000 100,520
Washington State, Motor Vehicle Fuel
Tax, Series C, 4% due 01/01/00....... 210,000 210,000
Wisconsin, General Obligation, 5.75%
due 05/01/00......................... 100,000 100,566
--------
Total Fixed Rate Bonds and Notes (cost: $1,319,650) 1,319,650
--------
VARIABLE RATE DEMAND NOTES* -- 62.15%
Allegheny County, Pennsylvania,
Hospital Development Authority,
Presbyterian University, Series B1,
5.65% due 03/01/18................... 95,000 95,000
Allentown, Pennsylvania, Area Hospital
Authority Revenue, Sacred Heart
Hospital, Series B, 5.55% due
07/01/23............................. 200,000 200,000
Birmingham-Carraway, Alabama, Special
Care Facilities Financing Authority
Revenue, 5.55% due 08/15/28.......... 100,000 100,000
Butte-Silver Bow, Montana, Pollution
Control Revenue, Rhone-Poulenc, Inc.
Project, 5.55% due 03/01/16.......... 100,000 100,000
Cleveland, Ohio, Income Tax Revenue,
AMBAC Insured, 5.55% due 05/15/24.... 100,000 100,000
Coastal Bend, Texas, Health Facilities
Corp. Revenue, Incarnate World Health
Systems, Series B, 5.60% due
08/15/28............................. 200,000 200,000
Florida, Housing Financing Agency,
Multi-Family Revenue Refunding, 5.40%
due 04/01/26......................... 200,000 200,000
Fort Wayne, Indiana, Hospital
Authority Revenue, Parkview Memorial
Hospital, Series D, 5.55% due
01/01/16............................. 200,000 200,000
Indiana, Health Facility Authority
Revenue, Capital Access '90, 5.50% due
12/01/10.............................. 100,000 100,000
Capital Access '91, 5.50% due
08/01/06............................. 100,000 100,000
Illinois, Health Facilities Financing
Authority Revenue, Ingalls Memorial
Hospital, Series C, 5.50% due
01/01/16............................. 200,000 200,000
Massachusetts, Health and Educational
Facilities Authority Revenue, Amherst
College, Series F, 5.10% due
11/01/26............................. 200,000 200,000
Newton Wellesley Hospital, Series F,
5.20% due 07/01/25................... 200,000 200,000
Montana, Health Facilities Authority
Revenue, Health Care Pooled Loan
Program, Series A, AMBAC Insured,
5.40% due 12/01/20................... 200,000 200,000
Morgan County, Utah, Solid Waste
Disposal Revenue, Holnam, Inc.
Project, AMT, 5.60% due 08/01/31..... 100,000 100,000
Providence, Rhode Island, General
Obligation, 6.75% due 01/15/10....... 225,000 229,688
Purdue University, Indiana, Revenue,
Student Fee Series L, 5.40% due
07/01/20............................. 100,000 100,000
</TABLE>
37
<PAGE> 39
Statements of Investments in Securities and Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Money Fund (continued)
- ---------------------------------------------------------------------
value
face amount (note 1)
--------- --------
<S> <C> <C>
Winston-Salem, North Carolina, COP,
Risk Acceptance Management Corp.,
5.55% due 07/01/09................... $175,000 $ 175,000
--------
Total Variable Rate Demand Notes (cost: $2,799,688) 2,799,688
--------
TOTAL SECURITIES (COST: $4,819,338) - 106.98% 4,819,338
OTHER ASSETS AND LIABILITIES, NET - (6.98)% (314,250)
--------
NET ASSETS - 100.00% $4,505,088
--------
--------
</TABLE>
<TABLE>
<CAPTION>
Atlas U.S. Treasury Money Fund
- --------------------------------------------------------------------
value
face amount (note 1)
----------- -----------
<S> <C> <C>
UNITED STATES TREASURY BILLS - 52.94%
4.63% - 5.31% due
01/20/00 - 03/30/00............. $30,035,000 $29,868,258
---------
Total United States Treasury Bills (cost:
$29,868,258) 29,868,258
---------
UNITED STATES TREASURY NOTES - 47.64%
5.38% - 6.38% due
01/15/00 - 03/31/00............... 26,245,000 26,879,040
---------
Total United States Treasury Notes (cost:
$26,879,040) 26,879,040
---------
TOTAL SECURITIES (COST: $56,747,298) - 100.58% 56,747,298
OTHER ASSETS AND LIABILITIES, NET - (.58)% (326,349)
---------
NET ASSETS - 100.00% $56,420,949
---------
---------
</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 year the value of these securities amounted to $2,767,475 or
3.41% of net assets in the Balanced Fund, $397,373 or 0.50% of net assets in
the Global Growth Fund, $17,667,500 or 4.07% of net assets in the Growth and
Income Fund, and $5,554,001 or 7.66% 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 HUF - Hungarian Forint
ARP - Argentine Peso JPY - Japanese Yen
BRA- Brazilian Real MXP - Mexican Nuevo Peso
CAD - Canadian Dollar NOK - Norwegian Krone
DEM - German Deutsche Mark NZD - New Zealand Dollar
DKK - Danish Krone PLZ - Polish Zloty
EUR - European Currency Unit RUR - Russian Ruble
GBP - British Pound Sterling SEK - Swedish Krona
GRD - Greek Drachma ZAR - South African Rand
</TABLE>
(k) Securities with an aggregate market value of $261,635 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.
(m) For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
(n) Principal-Only Strips represent the right to receive the monthly principal
payments on an underlying pool of mortgage loans. The value of these
securities generally increases as interest rates decline and prepayment
rates rise. The price of these securities is typically more volatile than
that of coupon-bearing bonds of the same maturity.
(o) A sufficient amount of securities has been designated to cover outstanding
written call and put options, as follows:
<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> <C>
Strategic Income Fund:
- -------------------
Brazilian Real Put Option 862,470 1/28/2000 2.0535 BRA $14,280 $ 862
Japanese Yen Call Option 36,000,000 3/6/2000 96.10 JPY 3,727 3,780
-------------------
$18,007 $4,642
-------------------
-------------------
</TABLE>
ACES = Automatic Common Exchange Security
ADR = American Depositary Receipt
AMBAC = AMBAC Indemnity Corporation
AMT = Alternative Minimum Tax
COP = Certificate of Participation
FGIC = Financial Guarantee Insurance Corporation
FSA = Financial Security Assurance Inc.
GDR = Global Depositary Receipt
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
The accompanying notes are an integral part of these financial statements.
38
<PAGE> 40
(This page is intentionally left blank)
39
<PAGE> 41
Statements of Assets and Liabilities December 31, 1999
- --------------------------------------------------------------------------------
<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............. $80,093,105 $15,433,935 $53,735,613 $305,342,416 $ 90,927,159
--------- --------- --------- ---------- ----------
--------- --------- --------- ---------- ----------
Investment in securities, at
value....................... $81,093,275 $21,616,838 $76,978,715 $434,780,505 $116,996,407
Cash.......................... 0 0 0 0 0
Receivables:
Securities sold............. 0 10,219 2,113,491 0 0
Fund's shares sold.......... 11,117 11,356 213,744 536,810 412,632
Interest and dividends...... 370,831 3,910 12,238 351,849 13,036
Other....................... 11 0 31,985 0 0
Unrealized appreciation on
forward foreign exchange
currency contracts (Note
7).......................... 0 0 5,952 0 0
--------- --------- --------- ---------- ----------
Total assets.................. 81,475,234 21,642,323 79,356,125 435,669,164 117,422,075
--------- --------- --------- ---------- ----------
LIABILITIES:
Payables for:
Securities purchased........ 0 0 441,931 0 0
Fund's shares redeemed...... 3,520 500 6,567 278,329 132,676
Dividends................... 87,565 100,754 78,386 701,466 161,257
Accrued expenses.............. 116,344 26,598 94,546 497,291 141,497
Other liabilities............. 0 0 0 0 0
Options written, at value
(premiums received
$18,007).................... 0 0 0 0 0
Variation margin on futures
contracts................... 0 0 0 0 0
--------- --------- --------- ---------- ----------
Total liabilities............. 207,429 127,852 621,430 1,477,086 435,430
--------- --------- --------- ---------- ----------
NET ASSETS...................... $81,267,805 $21,514,471 $78,734,695 $434,192,078 $116,986,645
--------- --------- --------- ---------- ----------
--------- --------- --------- ---------- ----------
NET ASSETS CONSIST OF:
Net unrealized appreciation
(depreciation)................ $ 1,000,161 $ 6,182,903 $23,247,267 $129,438,089 $ 26,069,248
Accumulated net realized gain
(loss)...................... 870 155,504 (572,988) 63,027 63,088
Undistributed net investment
income (loss)............... 84 (349,910) 63,199 291 (114,887)
Paid in capital............... 80,266,690 15,525,974 55,997,217 304,690,671 90,969,196
--------- --------- --------- ---------- ----------
NET ASSETS...................... $81,267,805 $21,514,471 $78,734,695 $434,192,078 $116,986,645
--------- --------- --------- ---------- ----------
--------- --------- --------- ---------- ----------
NET ASSET VALUE PER SHARE:
Class A
Net Assets.................. $73,364,648 $19,551,281 $70,300,128 $410,721,098 $102,427,694
Shares outstanding.......... 5,660,009 1,040,715 3,646,801 15,433,843 4,989,179
Net asset value per share
and maximum offering
price....................... $ 12.96 $ 18.79 $ 19.28 $ 26.61 $ 20.53
Class B
Net Assets.................. $ 7,903,157 $ 1,963,190 $ 8,434,567 $ 23,470,980 $ 14,558,951
Shares outstanding.......... 612,285 106,487 448,876 886,586 722,982
Net asset value per share
and maximum offering
price....................... $ 12.91 $ 18.44 $ 18.79 $ 26.47 $ 20.14
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.
40
<PAGE> 42
- --------------------------------------------------------------------------------
<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>
$204,594,186 $ 56,454,627 $78,105,755 $220,488,870 $ 39,095,679 $ 4,819,338 $ 56,747,298
---------- ---------- --------- ------------ ---------- ---------- -----------
---------- ---------- --------- ------------ ---------- ---------- -----------
$201,159,911 $ 55,820,218 $73,689,119 $212,324,715 $ 39,095,679 $ 4,819,338 $ 56,747,298
0 0 1,579 113 6,551 0 905
0 0 48,773 0 0 0 0
150,000 10,000 87,284 61,000 31,837 0 256,367
3,512,456 833,664 1,465,611 1,274,838 305,906 41,039 0
0 0 0 20,174 0 0 0
0 0 4,554 0 0 0 0
---------- ---------- --------- ------------ ---------- ---------- -----------
204,822,367 56,663,882 75,296,920 213,680,840 39,439,973 4,860,377 57,004,570
---------- ---------- --------- ------------ ---------- ---------- -----------
0 0 2,372,850 5,008,499 0 301,950 0
29,770 37,602 27,622 270,388 97,572 2,650 541,922
257,652 56,303 274,937 384,570 4,200 391 9,386
238,060 70,144 111,021 264,798 21,705 3,203 32,313
40,991 46,002 0 3,874 0 47,095 0
0 0 4,642 0 0 0 0
0 0 2,392 0 0 0 0
---------- ---------- --------- ------------ ---------- ---------- -----------
566,473 210,051 2,793,464 5,932,129 123,477 355,289 583,621
---------- ---------- --------- ------------ ---------- ---------- -----------
$204,255,894 $ 56,453,831 $72,503,456 $207,748,711 $ 39,316,496 $ 4,505,088 $ 56,420,949
---------- ---------- --------- ------------ ---------- ---------- -----------
---------- ---------- --------- ------------ ---------- ---------- -----------
$ (3,434,275) $ (634,409) $(4,435,668) $ (8,164,155) $ 0 $ 0 $ 0
(532,417) (761,250) (2,413,737) (15,066,214) (85) (377) (25,252)
0 0 84,173 0 0 0 0
208,222,586 57,849,490 79,268,688 230,979,080 39,316,581 4,505,465 56,446,201
---------- ---------- --------- ------------ ---------- ---------- -----------
$204,255,894 $ 56,453,831 $72,503,456 $207,748,711 $ 39,316,496 $ 4,505,088 $ 56,420,949
---------- ---------- --------- ------------ ---------- ---------- -----------
---------- ---------- --------- ------------ ---------- ---------- -----------
$198,405,611 $ 54,295,916 $67,218,071 $202,965,552 $ 39,316,496 $ 4,505,088 $ 55,891,966
18,929,704 5,170,338 14,394,812 21,126,201 39,316,581 4,505,465 55,917,140
$ 10.48 $ 10.50 $ 4.67 $ 9.61 $ 1.00 $ 1.00 $ 1.00
$ 5,850,283 $ 2,157,915 $ 5,285,385 $ 4,783,159 NA NA $ 528,983
557,857 205,373 1,133,666 497,827 NA NA 529,061
$ 10.49 $ 10.51 $ 4.66 $ 9.61 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>
41
<PAGE> 43
Statements of Operations For the year ended December 31, 1999
- --------------------------------------------------------------------------------
<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....................... $ 2,217,559 $ 51,935 $ 104,333 $ 2,244,751 $ 582,499
Dividends...................... 1,995,771 7,354 735,271 3,183,048 406,875
--------- -------- --------- --------- ---------
Total income..................... 4,213,330 59,289 839,604 5,427,799 989,374
--------- -------- --------- --------- ---------
Expenses:
Management fees................ 662,847 122,173 398,935 2,103,766 624,519
Distribution fees:
Class A...................... 213,326 34,268 108,743 779,698 191,783
Class B...................... 70,222 11,733 47,773 165,612 93,780
Transfer agency fees and
expenses..................... 105,042 48,261 68,285 272,476 106,750
Custodian fees and expenses.... 51,284 46,486 124,936 154,221 47,924
Directors' fees................ 4,154 670 2,181 14,597 3,906
Registration fees.............. 2,708 1,869 3,638 15,870 2,601
Accounting and legal fees...... 16,054 14,288 15,029 21,220 15,888
Reports to shareholders........ 17,068 5,610 10,756 47,548 18,028
Other.......................... 4,241 514 2,060 13,369 3,210
--------- -------- --------- --------- ---------
Total expenses............... 1,146,946 285,872 782,336 3,588,377 1,108,389
Management fees waived:
Class A...................... 0 (4,167) 0 0 0
Class B...................... 0 (471) 0 0 0
Distribution fees waived:
Class A...................... 0 (25,345) 0 0 0
Class B...................... 0 0 0 (10,034) 0
Expense reimbursement:
Class A...................... 0 0 0 0 0
Class B...................... (9,316) (12,383) (9,799) (9,422) (5,294)
--------- -------- --------- --------- ---------
Net expenses..................... 1,137,630 243,506 772,537 3,568,921 1,103,095
--------- -------- --------- --------- ---------
Net investment income (loss)..... 3,075,700 (184,217) 67,067 1,858,878 (113,721)
--------- -------- --------- --------- ---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCY:
Realized gain (loss) from:
Security transactions
(including premiums on options
exercised)..................... 1,799,082 2,405,133 12,281,356 34,843,270 17,416,509
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 (266,544) 0 0
--------- -------- --------- --------- ---------
Net realized gain (loss) on
investments and foreign
currency......................... 1,799,082 2,405,133 12,014,812 35,003,101 17,416,509
--------- -------- --------- --------- ---------
Unrealized appreciation
(depreciation):
Beginning of year.............. 10,760,597 2,616,144 9,092,999 67,840,229 10,726,776
End of year.................... 1,000,161 6,182,903 23,247,267 129,438,089 26,069,248
--------- -------- --------- --------- ---------
Net change in unrealized
appreciation (depreciation) on
investments and foreign
currency......................... (9,760,436) 3,566,759 14,154,268 61,597,860 15,342,472
--------- -------- --------- --------- ---------
Net realized and unrealized gain
(loss) on investments and foreign
currency......................... (7,961,354) 5,971,892 26,169,080 96,600,961 32,758,981
--------- -------- --------- --------- ---------
Net increase (decrease) in net
assets resulting from
operations....................... $(4,885,654) $5,787,675 $26,236,147 $98,459,839 $32,645,260
--------- -------- --------- --------- ---------
--------- -------- --------- --------- ---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
42
<PAGE> 44
- --------------------------------------------------------------------------------
<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>
$ 11,919,782 $ 3,504,451 $ 6,663,093 $ 15,762,935 $1,190,008 $179,177 $2,594,076
0 0 114,109 0 0 0 0
---------- --------- --------- ----------- -------- -------- ----------
11,919,782 3,504,451 6,777,202 15,762,935 1,190,008 179,177 2,594,076
---------- --------- --------- ----------- -------- -------- ----------
1,193,691 344,847 530,914 1,226,877 195,594 26,879 279,064
524,115 149,608 161,899 542,579 97,797 13,440 138,076
55,416 21,422 45,216 45,277 NA NA 4,369
124,243 54,653 88,796 226,750 26,608 6,795 106,821
117,883 42,720 141,830 194,521 28,991 13,917 29,611
9,519 2,753 3,104 9,782 1,715 236 2,448
3,707 1,965 3,716 4,585 3,692 1,775 1,778
18,729 15,344 27,125 18,848 13,736 13,015 15,178
14,289 5,261 9,577 26,929 3,133 746 10,615
9,977 3,176 3,121 9,975 1,760 249 2,988
---------- --------- --------- ----------- -------- --------- -----------
2,071,569 641,749 1,015,298 2,306,123 373,026 77,052 590,948
0 0 (27,140) 0 (28,796) (24,855) (49,900)
0 0 (2,733) 0 NA NA (526)
(102,096) (4,748) (113,040) 0 (97,797) (13,440) (138,076)
0 0 0 0 NA NA 0
0 0 0 0 0 (982) 0
(14,081) (14,562) (12,213) (13,358) NA NA (14,760)
---------- --------- --------- ------------ -------- -------- ----------
1,955,392 622,439 860,172 2,292,765 246,433 37,775 387,686
---------- --------- --------- ------------ -------- -------- ----------
9,964,390 2,882,012 5,917,030 13,470,170 943,575 141,402 2,206,390
---------- --------- --------- ------------ -------- -------- ----------
(538,999) (786,965) (1,574,657) (432,240) 0 0 (1,108)
0 0 (240,639) 0 0 0 0
0 0 9,830 0 0 0 0
0 0 (114,903) 0 0 0 0
---------- --------- --------- ------------ -------- -------- ----------
(538,999) (786,965) (1,920,369) (432,240) 0 0 (1,108)
---------- --------- --------- ------------ -------- -------- ----------
15,896,139 4,551,750 (1,791,396) 4,098,554 0 0 0
(3,434,275) (634,409) (4,435,668) (8,164,155) 0 0 0
---------- --------- --------- ------------ -------- -------- ----------
(19,330,414) (5,186,159) (2,644,272) (12,262,709) 0 0 0
---------- --------- --------- ------------ -------- -------- ----------
(19,869,413) (5,973,124) (4,564,641) (12,694,949) 0 0 (1,108)
---------- --------- --------- ------------ -------- -------- ----------
$ (9,905,023) $(3,091,112) $ 1,352,389 $ 775,221 $ 943,575 $141,402 $2,205,282
---------- --------- --------- ------------ -------- -------- ----------
---------- --------- --------- ------------ -------- -------- ----------
</TABLE>
43
<PAGE> 45
Statements of Changes in Net Assets For the years ended December 31
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
----------------------------------------------------------------
Balanced Fund Emerging Growth Fund
----------------------------------------------------------------
1999 1998 1999 1998
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss)........... $ 3,075,700 $ 2,616,330 $ (184,217) $ (127,047)
Net realized gain (loss) on investments
and foreign currency................... 1,799,082 2,770,672 2,405,133 (1,164,001)
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency....................... (9,760,436) 745,373 3,566,759 1,692,655
---------- ---------- --------- ---------
Net increase (decrease) in net assets
resulting from operations.............. (4,885,654) 6,132,375 5,787,675 401,607
---------- ---------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A.............................. (2,814,255) (2,355,024) 0 0
Class B.............................. (261,528) (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.............................. (1,622,901) (2,482,959) (829,220) 0
Class B.............................. (175,980) (287,023) (84,428) 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.............................. (4,437,156) (4,837,983) (829,220) 0
Class B.............................. (437,508) (548,151) (84,428) 0
---------- ---------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A.............................. 22,687,245 48,172,573 3,679,935 9,959,353
Class B.............................. 240,048 506,658 104,260 124,939
Reinvestment of distributions:
Class A.............................. 4,281,806 4,691,092 731,653 0
Class B.............................. 404,505 511,405 83,628 0
Cost of shares redeemed:
Class A.............................. (33,217,461) (14,427,520) (6,043,303) (3,549,539)
Class B.............................. (1,937,618) (638,463) (732,436) (382,842)
---------- ---------- --------- ---------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A.............................. (6,248,410) 38,436,145 (1,631,715) 6,409,814
Class B.............................. (1,293,065) 379,600 (544,548) (257,903)
---------- ---------- --------- ---------
Net increase (decrease) in net
assets................................. (17,301,793) 39,561,986 2,697,764 6,553,518
NET ASSETS:
Beginning of year...................... 98,569,598 59,007,612 18,816,707 12,263,189
---------- ---------- --------- ---------
End of year............................ $ 81,267,805 $ 98,569,598 $21,514,471 $18,816,707
---------- ---------- --------- ---------
---------- ---------- --------- ---------
<CAPTION>
Stock Funds
------------------------------------
Global Growth Fund
------------------------------------
1999 1998
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss)........... $ 67,067 $ (13,764)
Net realized gain (loss) on investments
and foreign currency................... 12,014,812 (8,163)
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency....................... 14,154,268 5,151,652
---------- ---------
Net increase (decrease) in net assets
resulting from operations.............. 26,236,147 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.............................. (10,542,628) 0
Class B.............................. (1,298,105) 0
In excess of net realized gain on
investments:
Class A.............................. 0 (458,278)
Class B.............................. 0 (76,659)
---------- ---------
Total distributions:
Class A.............................. (10,542,628) (458,278)
Class B.............................. (1,298,105) (76,659)
---------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A.............................. 18,101,415 12,555,581
Class B.............................. 259,545 145,313
Reinvestment of distributions:
Class A.............................. 10,476,846 454,679
Class B.............................. 1,286,005 75,483
Cost of shares redeemed:
Class A.............................. (7,472,646) (9,773,797)
Class B.............................. (877,257) (645,016)
---------- ---------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A.............................. 21,105,615 3,236,463
Class B.............................. 668,293 (424,220)
---------- ---------
Net increase (decrease) in net
assets................................. 36,169,322 7,407,031
NET ASSETS:
Beginning of year...................... 42,565,373 35,158,342
---------- ---------
End of year............................ $ 78,734,695 $42,565,373
---------- ---------
---------- ---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
44
<PAGE> 46
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
---------------------------------------------------------------------------------------------------------------------
Growth and Income Fund Strategic Growth Fund California Municipal Bond Fund
---------------------------------------------------------------------------------------------------------------------
1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C>
$ 1,858,878 $ 1,546,334 $ (113,721) $ 370,066 $ 9,964,390 $ 9,340,842
35,003,101 18,119,781 17,416,509 4,195,214 (538,999) 1,982,806
61,597,860 32,400,882 15,342,472 2,743,649 (19,330,414) 834,361
---------- ---------- ---------- ---------- ---------- ----------
98,459,839 52,066,997 32,645,260 7,308,929 (9,905,023) 12,158,009
---------- ---------- ---------- ---------- ---------- ----------
(1,834,528) (1,504,508) 0 (371,222) (9,665,400) (9,025,681)
(24,044) (41,814) 0 0 (298,990) (315,161)
0 0 0 0 0 0
0 0 0 0 0 0
(32,874,252) (15,676,669) (14,687,199) (3,571,479) 0 (1,910,671)
(1,893,994) (1,326,962) (2,129,426) (623,735) 0 (71,983)
0 0 0 (458,195) 0 0
0 0 0 (78,584) 0 0
---------- ---------- ---------- ---------- ---------- ----------
(34,708,780) (17,181,177) (14,687,199) (4,400,896) (9,665,400) (10,936,352)
(1,918,038) (1,368,776) (2,129,426) (702,319) (298,990) (387,144)
---------- ---------- ---------- ---------- ---------- ----------
107,995,479 60,420,339 18,311,954 27,311,748 35,340,518 30,974,047
1,724,617 1,070,449 203,019 666,556 534,455 214,308
34,076,335 16,845,096 14,549,718 4,360,431 6,730,296 7,860,019
1,850,779 1,330,360 2,107,751 685,674 201,703 293,120
(37,741,015) (32,989,965) (17,735,288) (14,070,156) (36,399,218) (22,989,735)
(5,103,625) (2,659,625) (2,532,213) (1,560,567) (2,202,981) (582,127)
---------- ---------- ---------- ---------- ---------- ----------
104,330,799 44,275,470 15,126,384 17,602,023 5,671,596 15,844,331
(1,528,229) (258,816) (221,443) (208,337) (1,466,823) (74,699)
---------- ---------- ---------- ---------- ---------- ----------
164,635,591 77,533,698 30,733,576 19,599,400 (15,664,640) 16,604,145
269,556,487 192,022,789 86,253,069 66,653,669 219,920,534 203,316,389
---------- ---------- ---------- ---------- ---------- ----------
$434,192,078 $269,556,487 $116,986,645 $ 86,253,069 $204,255,894 $219,920,534
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
<CAPTION>
Bond Funds
------------------------------
National Municipal Bond
Fund
------------------------------
1999 1998
<S> <C> <C> <C>
$ 2,882,012 $ 2,814,624
(786,965) 613,677
(5,186,159) 71,742
---------- ---------
(3,091,112) 3,500,043
---------- ---------
(2,764,990) (2,689,025)
(117,022) (125,599)
0 0
0 0
0 (585,693)
0 (30,317)
0 0
0 0
---------- ---------
(2,764,990) (3,274,718)
(117,022) (155,916)
---------- ---------
7,263,711 8,468,075
67,933 157,266
2,065,907 2,564,103
104,652 138,510
(11,885,385) (7,280,380)
(991,406) (217,094)
---------- ---------
(2,555,767) 3,751,798
(818,821) 78,682
---------- ---------
(9,347,712) 3,899,889
65,801,543 61,901,654
---------- ---------
$ 56,453,831 $65,801,543
---------- ---------
---------- ---------
</TABLE>
45
<PAGE> 47
Statements of Changes in Net Assets For the years ended December 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
------------------------------------------------------------------
U.S. Government and
Strategic Income Fund Mortgage Securities Fund
------------------------------------------------------------------
1999 1998 1999 1998
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss)......... $ 5,917,030 $ 4,805,633 $ 13,470,170 $ 12,982,148
Net realized gain (loss) on
investments and foreign currency..... (1,920,369) (378,134) (432,240) (51,560)
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency..................... (2,644,272) (2,299,057) (12,262,709) (570,534)
---------- ---------- ---------- ----------
Net increase in net assets resulting
from operations...................... 1,352,389 2,128,442 775,221 12,360,054
---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A............................ (5,282,299) (3,983,874) (13,135,424) (12,586,020)
Class B............................ (448,447) (480,703) (334,746) (396,128)
Tax return of capital:
Class A............................ (116,459) (288,617) 0 0
Class B............................ (9,885) (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............................ (5,398,758) (4,312,092) (13,135,424) (12,586,020)
Class B............................ (458,332) (519,836) (334,746) (396,128)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A............................ 26,590,070 46,697,973 53,886,742 48,394,123
Class B............................ 171,454 380,992 201,667 380,659
Reinvestment of distributions:
Class A............................ 2,630,076 2,330,794 8,538,321 8,061,608
Class B............................ 252,032 285,373 233,826 276,715
Cost of shares redeemed:
Class A............................ (24,271,854) (18,062,331) (63,452,218) (42,086,318)
Class B............................ (1,943,379) (1,228,478) (2,112,512) (1,058,306)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A............................ 4,948,292 30,966,436 (1,027,155) 14,369,413
Class B............................ (1,519,893) (562,113) (1,677,019) (400,932)
---------- ---------- ---------- ----------
Net increase (decrease) in net
assets............................... (1,076,302) 27,700,837 (15,399,123) 13,346,387
NET ASSETS:
Beginning of year.................... 73,579,758 45,878,921 223,147,834 209,801,447
---------- ---------- ---------- ----------
End of year.......................... $ 72,503,456 $ 73,579,758 $207,748,711 $223,147,834
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
<CAPTION>
Money Funds
-------------------------------------
California Municipal
Money Fund
-------------------------------------
1999 1998
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss)......... $ 943,575 $ 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 in net assets resulting
from operations...................... 943,575 1,137,810
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A............................ (943,575) (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............................ (943,575) (1,137,810)
Class B............................ NA NA
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A............................ 27,193,098 31,054,254
Class B............................ NA NA
Reinvestment of distributions:
Class A............................ 905,689 1,091,252
Class B............................ NA NA
Cost of shares redeemed:
Class A............................ (29,265,777) (36,412,745)
Class B............................ NA NA
---------- ----------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A............................ (1,166,990) (4,267,239)
Class B............................ NA NA
---------- ----------
Net increase (decrease) in net
assets............................... (1,166,990) (4,267,239)
NET ASSETS:
Beginning of year.................... 40,483,486 44,750,725
---------- ----------
End of year.......................... $ 39,316,496 $ 40,483,486
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
46
<PAGE> 48
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------------------
National Municipal
Money Fund U.S. Treasury Money Fund
-------------------------------------------------------------------
1999 1998 1999 1998
<S> <C> <C> <C> <C>
$ 141,402 $ 166,712 $ 2,206,390 $ 2,643,142
0 0 (1,108) (4,012)
0 0 0 0
--------- --------- ---------- ----------
141,402 166,712 2,205,282 2,639,130
--------- --------- ---------- ----------
(141,402) (166,712) (2,187,656) (2,632,049)
NA NA (18,734) (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
--------- --------- ---------- ----------
(141,402) (166,712) (2,187,656) (2,632,049)
NA NA (18,734) (11,093)
--------- --------- ---------- ----------
3,134,507 2,701,089 43,976,388 50,707,219
NA NA 634,612 800,236
135,153 153,899 2,076,614 2,505,436
NA NA 18,729 10,803
(4,229,068) (3,969,166) (48,346,071) (55,056,160)
NA NA (665,542) (433,563)
--------- --------- ---------- ----------
(959,408) (1,114,178) (2,293,069) (1,843,505)
NA NA (12,201) 377,476
--------- --------- ---------- ----------
(959,408) (1,114,178) (2,306,378) (1,470,041)
5,464,496 6,578,674 58,727,327 60,197,368
--------- --------- ---------- ----------
$ 4,505,088 $ 5,464,496 $ 56,420,949 $ 58,727,327
--------- --------- ---------- ----------
--------- --------- ---------- ----------
</TABLE>
47
<PAGE> 49
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
---------------------------------------------------------------------------
Balanced Fund
Class A Class B
---------------------------------------------------------------------------
December 31, December 31,
1999 1998 1997 1996 1995 1999 1998 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 14.47 $ 14.14 $ 12.18 $ 11.19 $ 9.23 $14.41 $ 14.09 $12.15
----- ----- ----- ----- ----- ---- ----- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.48 0.46 0.46 0.42 0.42 0.41 0.41 0.39
Net realized and unrealized gain
on investments................... (1.21) 0.75 2.27 1.32 2.02 (1.20) 0.72 2.26
----- ----- ----- ----- ----- ---- ----- ----
Total from investment
operations....................... (0.73) 1.21 2.73 1.74 2.44 (0.79) 1.13 2.65
----- ----- ----- ----- ----- ---- ----- ----
LESS DISTRIBUTIONS:
From net investment income....... (0.48) (0.46) (0.46) (0.42) (0.42) (0.41) (0.39) (0.40)
From net capital gains........... (0.30) (0.42) (0.31) (0.33) (0.06) (0.30) (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
Tax return of capital
distribution..................... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- ----- ---- ----- ----
Total distributions.............. (0.78) (0.88) (0.77) (0.75) (0.48) (0.71) (0.81) (0.71)
----- ----- ----- ----- ----- ---- ----- ----
Net asset value, end of period.... $ 12.96 $ 14.47 $ 14.14 $ 12.18 $ 11.19 $12.91 $ 14.41 $14.09
----- ----- ----- ----- ----- ---- ----- ----
----- ----- ----- ----- ----- ---- ----- ----
Total return(3)................... -5.20% 8.63% 22.72% 15.81% 26.76% -5.64% 8.04% 22.05%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $73,365 $88,430 $49,456 $29,289 $13,547 $7,903 $10,139 $9,552
Ratio of expenses to average net
assets:(4)
Before expense waivers and
reimbursement.................. 1.15% 1.16% 1.20% 1.28% 1.53% 1.74% 1.76% 1.91%
After expense waivers and
reimbursement.................. 1.15% 1.16% 1.20% 1.28% 1.48% 1.64% 1.66% 1.69%
Ratio of net investment income to
average net assets(4)............ 3.30% 3.28% 3.58% 3.86% 4.15% 2.80% 2.77% 3.07%
Portfolio turnover rate.......... 51.94% 33.62% 14.71% 41.41% 25.84% 51.94% 33.62% 14.71%
<CAPTION>
Stock Funds
-------------------
Class B
-------------------
December 31,
1996 1995
<S> <C> <C> <C>
Net asset value, beginning of
period........................... $11.17 $ 9.22
---- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.36 0.35
Net realized and unrealized gain
on investments................... 1.32 2.03
---- ----
Total from investment
operations....................... 1.68 2.38
---- ----
LESS DISTRIBUTIONS:
From net investment income....... (0.37) (0.37)
From net capital gains........... (0.33) (0.06)
In excess of realized gains...... 0.00 0.00
Tax return of capital
distribution..................... 0.00 0.00
---- ----
Total distributions.............. (0.70) (0.43)
---- ----
Net asset value, end of period.... $12.15 $11.17
---- ----
---- ----
Total return(3)................... 15.25% 26.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $4,802 $1,632
Ratio of expenses to average net
assets:(4)
Before expense waivers and
reimbursement.................. 2.21% 3.25%
After expense waivers and
reimbursement.................. 1.77% 1.99%
Ratio of net investment income to
average net assets(4)............ 3.37% 3.66%
Portfolio turnover rate.......... 41.41% 25.84%
</TABLE>
(1) Commencement of operations.
(2) Effective date of registration.
(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>
-------------------------------------------------------------------------------------------------------------
Emerging Growth Fund Global Growth Fund
Class A Class B Class A
-------------------------------------------------------------------------------------------------------------
April 30, 1997(1) April 30, 1997(1)
Dec. 31, through Dec. 31, through December 31,
1999 1998 Dec. 31, 1997 1999 1998 Dec. 31, 1997 1999 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
------- ----- ------ ------ ----- ----- ----- ----- -----
(0.15) (0.09) (0.05) (0.23) (0.17) (0.12) 0.03 0.00 0.02
6.02 0.84 3.05 5.90 0.84 3.05 8.10 2.21 2.65
------- ----- ------ ------ ----- ----- ----- ----- -----
5.87 0.75 3.00 5.67 0.67 2.93 8.13 2.21 2.67
------- ----- ------ ------ ----- ----- ----- ----- -----
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(0.83) 0.00 0.00 (0.83) 0.00 0.00 (3.41) (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
------- ----- ------ ------ ----- ----- ----- ----- -----
(0.83) 0.00 0.00 (0.83) 0.00 0.00 (3.41) (0.34) (0.94)
------- ----- ------ ------ ----- ----- ----- ----- -----
$ 18.79 $ 13.75 $ 13.00 $ 18.44 $ 13.60 $ 12.93 $ 19.28 $ 14.56 $ 12.69
------- ----- ------ ------ ----- ----- ----- ----- -----
------- ----- ------ ------ ----- ----- ----- ----- -----
42.68% 5.77% 30.00% 41.68% 5.18% 29.30% 55.85% 16.19% 24.35%
$19,551 $16,747 $ 10,028 $ 1,963 $ 2,070 $ 2,235 $70,300 $36,549 $29,468
1.74% 1.59% 1.88% 2.98% 2.62% 3.25% 1.48% 1.53% 1.66%
1.53% 1.49% 1.49% 2.16% 2.08% 2.23% 1.48% 1.53% 1.62%
-1.14% -0.68% -0.59% -1.78% -1.27% -1.35% 0.19% 0.04% 0.14%
184.32% 106.24% 17.06% 184.32% 106.24% 17.06% 103.02% 74.52% 63.62%
<CAPTION>
---------------------------------------------------------------------
Class B
---------------------------------------------------------------------
April 30, 1996(2) April 30, 1996(2)
through December 31, through
Dec. 31, 1996 1999 1998 1997 Dec. 31, 1996
<S> <C> <C> <C> <C> <C> <C>
$ 10.14 $ 14.32 $12.55 $10.91 $ 10.14
------ ----- ---- ---- -----
0.01 (0.05) (0.06) (0.05) (0.03)
1.10 7.93 2.17 2.63 1.08
------ ----- ---- ---- -----
1.11 7.88 2.11 2.58 1.05
------ ----- ---- ---- -----
(0.01) 0.00 0.00 0.00 0.00
(0.27) (3.41) (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) (3.41) (0.34) (0.94) (0.28)
------ ----- ---- ---- -----
$ 10.96 $ 18.79 $14.32 $12.55 $ 10.91
------ ----- ---- ---- -----
------ ----- ---- ---- -----
10.89% 55.04% 15.58% 23.64% 10.34%
$ 13,552 $ 8,435 $6,017 $5,691 $ 2,210
2.36% 2.14% 2.21% 2.48% 3.25%
1.51% 1.99% 2.04% 2.14% 2.24%
0.13% -0.27% -0.46% -0.40% -0.75%
64.89% 103.02% 74.52% 63.62% 64.89%
</TABLE>
49
<PAGE> 51
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
------------------------------------------------------------------------------
Growth and Income Fund
Class A Class B
------------------------------------------------------------------------------
December 31, December 31,
1999 1998 1997 1996 1995 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 22.08 $ 18.86 $ 17.82 $ 15.91 $ 13.52 $ 21.99 $ 18.80
------ ------ ------ ------ ----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............. 0.14 0.15 0.10 0.14 0.20 0.03 0.05
Net realized and unrealized gain on
investments.............................. 6.85 4.71 4.58 3.06 4.26 6.80 4.67
------ ------ ------ ------ ----- ----- -----
Total from investment operations......... 6.99 4.86 4.68 3.20 4.46 6.83 4.72
------ ------ ------ ------ ----- ----- -----
LESS DISTRIBUTIONS:
From net investment income............... (0.14) (0.15) (0.10) (0.14) (0.20) (0.03) (0.04)
From net capital gains................... (2.32) (1.49) (3.53) (1.15) (1.87) (2.32) (1.49)
In excess of realized gains.............. 0.00 0.00 (0.01) 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
------ ------ ------ ------ ----- ----- -----
Total distributions...................... (2.46) (1.64) (3.64) (1.29) (2.07) (2.35) (1.53)
------ ------ ------ ------ ----- ----- -----
Net asset value, end of period............ $ 26.61 $ 22.08 $ 18.86 $ 17.82 $ 15.91 $ 26.47 $ 21.99
------ ------ ------ ------ ----- ----- -----
------ ------ ------ ------ ----- ----- -----
Total return(1)........................... 31.72% 25.83% 26.32% 20.16% 33.06% 31.05% 25.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)........ $410,721 $248,606 $173,796 $138,604 $93,061 $23,471 $20,951
Ratio of expenses to average net
assets:(2)
Before expense waivers and
reimbursement.......................... 1.04% 1.06% 1.10% 1.16% 1.24% 1.56% 1.61%
After expense waivers and
reimbursement.......................... 1.04% 1.06% 1.10% 1.16% 1.24% 1.47% 1.56%
Ratio of net investment income to average
net assets(2)............................ 0.59% 0.73% 0.51% 0.82% 1.26% 0.12% 0.24%
Portfolio turnover rate.................. 102.42% 106.21% 118.26% 86.66% 125.28% 102.42% 106.21%
<CAPTION>
----------------------------
Class B
----------------------------
1997 1996 1995
<S> <C> <C> <C>
Net asset value, beginning of period...... $ 17.78 $ 15.89 $13.52
----- ----- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............. 0.03 0.06 0.10
Net realized and unrealized gain on
investments.............................. 4.56 3.05 4.26
----- ----- ----
Total from investment operations......... 4.59 3.11 4.36
----- ----- ----
LESS DISTRIBUTIONS:
From net investment income............... (0.03) (0.07) (0.12)
From net capital gains................... (3.53) (1.15) (1.87)
In excess of realized gains.............. (0.01) 0.00 0.00
Tax return of capital distribution....... 0.00 0.00 0.00
----- ----- ----
Total distributions...................... (3.57) (1.22) (1.99)
----- ----- ----
Net asset value, end of period............ $ 18.80 $ 17.78 $15.89
----- ----- ----
----- ----- ----
Total return(1)........................... 25.82% 19.60% 32.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)........ $18,227 $12,427 $4,292
Ratio of expenses to average net
assets:(2)
Before expense waivers and
reimbursement.......................... 1.69% 1.83% 2.39%
After expense waivers and
reimbursement.......................... 1.49% 1.66% 1.75%
Ratio of net investment income to average
net assets(2)............................ 0.14% 0.29% 0.84%
Portfolio turnover rate.................. 118.26% 86.66% 125.28%
</TABLE>
(1) 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.
(2) 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>
------------------------------------------------------------------------------------------------
Strategic Growth Fund
Class A Class B
------------------------------------------------------------------------------------------------
December 31, December 31,
1999 1998 1997 1996 1995 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 17.11 $ 16.36 $ 14.01 $ 12.69 $ 10.00 $ 16.91 $ 16.22 $ 13.92 $12.63 $ 9.98
------ ----- ----- ----- ----- ----- ----- ----- ---- ----
(0.01) 0.09 0.11 0.13 0.10 (0.10) 0.01 0.05 0.07 0.03
6.87 1.86 3.65 2.88 2.82 6.77 1.79 3.60 2.85 2.82
------ ----- ----- ----- ----- ----- ----- ----- ---- ----
6.86 1.95 3.76 3.01 2.92 6.67 1.80 3.65 2.92 2.85
------ ----- ----- ----- ----- ----- ----- ----- ---- ----
0.00 (0.09) (0.11) (0.13) (0.09) 0.00 0.00 (0.05) (0.07) (0.06)
(3.44) (1.00) (1.30) (1.56) (0.14) (3.44) (1.00) (1.30) (1.56) (0.14)
0.00 (0.11) 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
------ ----- ----- ----- ----- ----- ----- ----- ---- ----
(3.44) (1.20) (1.41) (1.69) (0.23) (3.44) (1.11) (1.35) (1.63) (0.20)
------ ----- ----- ----- ----- ----- ----- ----- ---- ----
$ 20.53 $ 17.11 $ 16.36 $ 14.01 $ 12.69 $ 20.14 $ 16.91 $ 16.22 $13.92 $12.63
====== ===== ===== ===== ===== ===== ===== ===== ==== ====
40.12% 11.22% 26.89% 23.72% 29.14% 39.47% 10.39% 26.23% 23.13% 28.58%
$102,428 $73,626 $54,310 $22,253 $12,223 $14,559 $12,627 $12,344 $5,689 $2,332
1.17% 1.16% 1.21% 1.31% 1.65% 1.70% 1.71% 1.82% 2.12% 3.25%
1.17% 1.16% 1.21% 1.31% 1.62% 1.66% 1.66% 1.71% 1.81% 2.14%
-0.06% 0.52% 0.86% 1.08% 1.03% -0.54% 0.03% 0.37% 0.59% 0.56%
179.98% 89.69% 85.55% 119.87% 73.32% 179.98% 89.69% 85.55% 119.87% 73.32%
</TABLE>
51
<PAGE> 53
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
----------------------------------------------------
California Municipal Bond Fund
Class A
----------------------------------------------------
December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 11.49 $ 11.44 $ 11.15 $ 11.26 $ 10.31
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.51 0.51 0.53 0.53 0.54
Net realized and unrealized gain
on investments................... (1.01) 0.16 0.33 (0.11) 0.95
------ ------ ------ ------ ------
Total from investment
operations....................... (0.50) 0.67 0.86 0.42 1.49
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment income....... (0.51) (0.51) (0.53) (0.53) (0.54)
From net capital gains........... 0.00 (0.11) (0.04) 0.00 0.00
In excess of realized gains...... 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
------ ------ ------ ------ ------
Total distributions.............. (0.51) (0.62) (0.57) (0.53) (0.54)
------ ------ ------ ------ ------
Net asset value, end of period.... $ 10.48 $ 11.49 $ 11.44 $ 11.15 $ 11.26
====== ====== ====== ====== ======
Total return(1)................... -4.48% 5.94% 7.97% 3.90% 14.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $198,406 $211,938 $195,292 $177,593 $184,283
Ratio of expenses to average net
assets:(2)
Before expense waivers and
reimbursement.................. 0.93% 0.94% 0.95% 0.96% 0.96%
After expense waivers and
reimbursement.................. 0.88% 0.94% 0.95% 0.96% 0.93%
Ratio of net investment income to
average net assets (2)........... 4.61% 4.43% 4.76% 4.82% 4.98%
Portfolio turnover rate.......... 17.01% 14.95% 15.95% 29.28% 25.90%
<CAPTION>
Bond Funds
------------------------------------------
California Municipal Bond Fund
Class B
------------------------------------------
December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $11.50 $11.45 $11.15 $11.26 $10.32
---- ---- ---- ---- ----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.45 0.45 0.48 0.48 0.48
Net realized and unrealized gain
on investments................... (1.01) 0.16 0.34 (0.11) 0.94
---- ---- ---- ---- ----
Total from investment
operations....................... (0.56) 0.61 0.82 0.37 1.42
---- ---- ---- ---- ----
LESS DISTRIBUTIONS:
From net investment income....... (0.45) (0.45) (0.48) (0.48) (0.48)
From net capital gains........... 0.00 (0.11) (0.04) 0.00 0.00
In excess of realized gains...... 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
---- ---- ---- ---- ----
Total distributions.............. (0.45) (0.56) (0.52) (0.48) (0.48)
---- ---- ---- ---- ----
Net asset value, end of period.... $10.49 $11.50 $11.45 $11.15 $11.26
==== ==== ==== ==== ====
Total return(1)................... -4.99% 5.41% 7.53% 3.39% 14.05%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $5,850 $7,983 $8,025 $5,360 $3,162
Ratio of expenses to average net
assets:(2)
Before expense waivers and
reimbursement.................. 1.62% 1.63% 1.70% 1.83% 2.24%
After expense waivers and
reimbursement.................. 1.43% 1.44% 1.45% 1.46% 1.46%
Ratio of net investment income to
average net assets (2)........... 4.05% 3.94% 4.24% 4.33% 4.42%
Portfolio turnover rate.......... 17.01% 14.95% 15.95% 29.28% 25.90%
</TABLE>
(1) 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.
(2) Annualized when the period presented is less than one year.
The accompanying notes are an integral part of these financial statements.
52
<PAGE> 54
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
National Municipal Bond Fund
Class A Class B
- --------------------------------------------------------------------------------------------
December 31, December 31,
1999 1998 1997 1996 1995 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 11.56 $ 11.54 $ 11.21 $ 11.39 $ 10.41 $11.56 $11.55 $11.21 $11.39 $10.41
----- ----- ----- ----- ----- ---- ---- ---- ---- ----
0.51 0.51 0.53 0.52 0.53 0.46 0.46 0.48 0.46 0.47
(1.06) 0.13 0.40 (0.12) 0.98 (1.05) 0.12 0.41 (0.12) 0.98
----- ----- ----- ----- ----- ---- ---- ---- ---- ----
(0.55) 0.64 0.93 0.40 1.51 (0.59) 0.58 0.89 0.34 1.45
----- ----- ----- ----- ----- ---- ---- ---- ---- ----
(0.51) (0.51) (0.53) (0.52) (0.53) (0.46) (0.46) (0.48) (0.46) (0.47)
0.00 (0.11) (0.07) (0.06) 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
----- ----- ----- ----- ----- ---- ---- ---- ---- ----
(0.51) (0.62) (0.60) (0.58) (0.53) (0.46) (0.57) (0.55) (0.52) (0.47)
----- ----- ----- ----- ----- ---- ---- ---- ---- ----
$ 10.50 $ 11.56 $ 11.54 $ 11.21 $ 11.39 $10.51 $11.56 $11.55 $11.21 $11.39
===== ===== ===== ===== ===== ==== ==== ==== ==== ====
-4.86% 5.70% 8.56% 3.58% 14.76% -5.25% 5.08% 8.11% 3.07% 14.16%
$54,296 $62,558 $58,740 $49,597 $53,387 $2,158 $3,244 $3,162 $1,952 $1,051
0.98% 0.99% 1.00% 1.01% 1.05% 1.99% 1.96% 2.13% 2.29% 3.25%
0.97% 0.99% 1.00% 1.01% 0.91% 1.47% 1.49% 1.50% 1.51% 1.44%
4.62% 4.44% 4.72% 4.63% 4.79% 4.10% 3.93% 4.21% 4.14% 4.22%
16.44% 21.89% 21.80% 44.76% 53.43% 16.44% 21.89% 21.80% 44.76% 54.30%
-----
</TABLE>
53
<PAGE> 55
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
---------------------------------------------
Strategic Income Fund
Class A
---------------------------------------------
May 20, 1996(1)
December 31, through
1999 1998 1997 Dec. 31, 1996
<S> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 4.98 $ 5.16 $ 5.16 $ 5.00
------- ------- ------- -------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.40 0.38 0.42 0.25
Net realized and unrealized gain
on investments................... (0.30) (0.15) 0.06 0.18
------- ------- ------- -------------
Total from investment
operations....................... 0.10 0.23 0.48 0.43
------- ------- ------- -------------
LESS DISTRIBUTIONS:
From net investment income....... (0.40) (0.38) (0.42) (0.25)
From net capital gains........... 0.00 (0.00) (0.05) (0.01)
In excess of realized gains...... 0.00 (0.00) (0.01) (0.01)
Tax return of capital
distribution..................... (0.01) (0.03) 0.00 0.00
------- ------- ------- -------------
Total distributions.............. (0.41) (0.41) (0.48) (0.27)
------- ------- ------- -------------
Net asset value, end of period.... $ 4.67 $ 4.98 $ 5.16 $ 5.16
======= ======= ======= =============
Total return(2)................... 1.92% 4.03% 9.57% 8.89%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $67,218 $66,375 $37,831 $ 17,863
Ratio of expenses to average net
assets:(3)
Before expense waivers and
reimbursement.................. 1.37% 1.36% 1.51% 1.85%
After expense waivers and
reimbursement.................. 1.16% 0.80% 0.41% 0.02%
Ratio of net investment income to
average net assets(3)............ 8.42% 7.45% 8.04% 8.19%
Portfolio turnover rate.......... 119.62% 172.43% 221.42% 187.15%
<CAPTION>
Bond Funds
---------------------------------------------
Strategic Income Fund
Class B
---------------------------------------------
May 20, 1996(1)
December 31, through
1999 1998 1997 Dec. 31, 1996
<S> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 4.97 $ 5.15 $ 5.15 $ 5.00
------- ------- ------- -------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)..... 0.38 0.34 0.38 0.23
Net realized and unrealized gain
on investments................... (0.31) (0.15) 0.06 0.17
------- ------- ------- -------------
Total from investment
operations....................... 0.07 0.19 0.44 0.40
------- ------- ------- -------------
LESS DISTRIBUTIONS:
From net investment income....... (0.37) (0.34) (0.38) (0.23)
From net capital gains........... 0.00 (0.00) (0.05) (0.01)
In excess of realized gains...... 0.00 (0.00) (0.01) (0.01)
Tax return of capital
distribution..................... (0.01) (0.03) 0.00 0.00
------- ------- ------- -------------
Total distributions.............. (0.38) (0.37) (0.44) (0.25)
------- ------- ------- -------------
Net asset value, end of period.... $ 4.66 $ 4.97 $ 5.15 $ 5.15
======= ======= ======= =============
Total return(2)................... 1.21% 3.25% 8.77% 8.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's).......................... $ 5,285 $ 7,205 $ 8,048 $ 2,964
Ratio of expenses to average net
assets:(3)
Before expense waivers and
reimbursement.................. 2.08% 2.01% 2.27% 3.25%
After expense waivers and
reimbursement.................. 1.83% 1.53% 1.16% 0.74%
Ratio of net investment income to
average net assets(3)............ 7.69% 6.71% 7.29% 7.47%
Portfolio turnover rate.......... 119.62% 172.43% 221.42% 187.15%
</TABLE>
(1) Commencement of operations.
(2) 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.
(3) Annualized when the period presented is less than one year.
The accompanying notes are an integral part of these financial statements.
54
<PAGE> 56
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
U.S. Government and Mortgage Securities Fund
Class A Class B
- -------------------------------------------------------------------------------------------------
December 31, December 31,
1999 1998 1997 1996 1995 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10.17 $ 10.20 $ 10.07 $ 10.30 $ 9.55 $10.17 $10.20 $10.07 $10.30 $ 9.55
------ ------ ------ ------ ------ ---- ---- ---- ---- ----
0.60 0.63 0.67 0.67 0.69 0.55 0.58 0.62 0.62 0.64
(0.56) (0.03) 0.13 (0.23) 0.75 (0.56) (0.03) 0.13 (0.23) 0.75
------ ------ ------ ------ ------ ---- ---- ---- ---- ----
0.04 0.60 0.80 0.44 1.44 (0.01) 0.55 0.75 0.39 1.39
------ ------ ------ ------ ------ ---- ---- ---- ---- ----
(0.60) (0.63) (0.67) (0.67) (0.69) (0.55) (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
------ ------ ------ ------ ------ ---- ---- ---- ---- ----
(0.60) (0.63) (0.67) (0.67) (0.69) (0.55) (0.58) (0.62) (0.62) (0.64)
------ ------ ------ ------ ------ ---- ---- ---- ---- ----
$ 9.61 $ 10.17 $ 10.20 $ 10.07 $ 10.30 $ 9.61 $10.17 $10.20 $10.07 $10.30
====== ====== ====== ====== ====== ==== ==== ==== ==== ====
0.39% 6.06% 8.25% 4.50% 15.50% -0.10% 5.53% 7.72% 3.98% 14.93%
$202,966 $216,344 $202,573 $224,301 $255,614 $4,783 $6,804 $7,228 $5,888 $3,799
%
1.01 1.02% 1.03% 1.03% 1.04% 1.73% 1.72% 1.76% 1.82% 2.27%
%
1.01 1.02% 1.03% 1.03% 1.02% 1.51% 1.53% 1.53% 1.53% 1.53%
%
6.05 6.20% 6.67% 6.67% 6.90% 5.55% 5.70% 6.16% 6.19% 6.34%
20.67% 22.70% 3.73% 27.45% 48.39% 20.67% 22.70% 3.73% 27.45% 48.39%
</TABLE>
55
<PAGE> 57
Financial Highlights selected data for a share outstanding throughout each
period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds
-----------------------------------------------------------------------------------
California Municipal Money Fund National Municipal Money Fund
Class A Class A
-----------------------------------------------------------------------------------
December 31, December 31,
1999 1998 1997 1996 1995 1999 1998 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............... 0.024 0.026 0.029 0.028 0.032 0.027 0.029 0.030
Net realized and unrealized gain on
investments................................ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations........... 0.024 0.026 0.029 0.028 0.032 0.027 0.029 0.030
------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income................. (0.024) (0.026) (0.029) (0.028) (0.032) (0.027) (0.029) (0.030)
From net capital gains..................... 0.000 0.000 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 0.000 0.000
Tax return of capital distribution......... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
------- ------- ------- ------- ------- ------- ------- -------
Total distributions........................ (0.024) (0.026) (0.029) (0.028) (0.032) (0.027) (0.029) (0.030)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======= ======= =======
Total return(1)............................. 2.44% 2.67% 2.97% 2.82% 3.22% 2.67% 2.95% 3.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's).......... $39,316 $40,483 $44,751 $37,355 $39,439 $ 4,505 $ 5,464 $ 6,579
Ratio of expenses to average net assets:(2)
Before expense waivers and
reimbursement............................ 0.95% 0.99% 0.97% 1.00% 1.00% 1.43% 1.35% 1.31%
After expense waivers and
reimbursement............................ 0.63% 0.67% 0.64% 0.63% 0.67% 0.70% 0.67% 0.68%
Ratio of net investment income to average
net assets(2).............................. 2.41% 2.74% 2.94% 2.78% 3.18% 2.63% 2.91% 3.04%
Portfolio turnover rate.................... -- -- -- -- -- -- -- --
<CAPTION>
-----------------
National Municipal Money Fund
Class A
-----------------
1996 1995
<S> <C> <C>
Net asset value, beginning of period........ $ 1.00 $ 1.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............... 0.029 0.032
Net realized and unrealized gain on
investments................................ 0.000 0.000
------- -------
Total from investment operations........... 0.029 0.032
------- -------
LESS DISTRIBUTIONS:
From net investment income................. (0.029) (0.032)
From net capital gains..................... 0.000 0.000
In excess of realized gains................ 0.000 0.000
Tax return of capital distribution......... 0.000 0.000
------- -------
Total distributions........................ (0.029) (0.032)
------- -------
Net asset value, end of period.............. $ 1.00 $ 1.00
======= =======
Total return(1)............................. 2.96% 3.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's).......... $ 7,514 $ 7,860
Ratio of expenses to average net assets:(2)
Before expense waivers and
reimbursement............................ 1.32% 1.29%
After expense waivers and
reimbursement............................ 0.68% 0.75%
Ratio of net investment income to average
net assets(2).............................. 2.92% 3.21%
Portfolio turnover rate.................... -- --
</TABLE>
(1) 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.
(2) Annualized when the period presented is less than one year.
The accompanying notes are an integral part of these financial statements.
56
<PAGE> 58
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
U.S. Treasury Money Fund
Class A Class B
- -----------------------------------------------------------------------------------------------------
December 31, December 31,
1999 1998 1997 1996 1995 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
0.040 0.045 0.046 0.046 0.050 0.032 0.038 0.039 0.040 0.044
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
0.040 0.045 0.046 0.046 0.050 0.032 0.038 0.039 0.040 0.044
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
(0.040) (0.045) (0.046) (0.046) (0.050) (0.032) (0.038) (0.039) (0.040) (0.044)
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
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
(0.040) (0.045) (0.046) (0.046) (0.050) (0.032) (0.038) (0.039) (0.040) (0.044)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
4.02% 4.60% 4.73% 4.74% 5.13% 3.25% 3.81% 3.95% 4.07% 4.45%
$55,892 $58,186 $60,033 $65,479 $51,385 $ 529 $ 542 $ 165 $ 120 $ 113
1.03% 1.02% 1.02% 1.02% 1.05% 4.06% 6.65% 3.25% 3.25% 3.25%
0.69% 0.60% 0.62% 0.52% 0.64% 1.44% 1.34% 1.37% 1.18% 1.24%
3.96% 4.49% 4.63% 4.63% 4.99% 3.21% 3.61% 3.90% 3.95% 4.34%
-- -- -- -- -- -- -- -- -- --
</TABLE>
57
<PAGE> 59
Notes to Financial Statements December 31, 1999
- --------------------------------------------------------------------------------
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, the Atlas Emerging Growth Fund,
the Atlas Global Growth Fund, the Atlas Growth and Income Fund, the Atlas
Strategic Growth Fund, the Atlas California Municipal Bond Fund, the Atlas
National Municipal Bond Fund, the Atlas Strategic Income Fund, the Atlas U.S.
Government and Mortgage Securities Fund, the Atlas California Municipal Money
Fund, the 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 Bond Fund and the Atlas
California Municipal Money 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 December 31, 1999, Atlas Strategic
58
<PAGE> 60
- --------------------------------------------------------------------------------
Income Fund holds securities in default with an aggregate market value of
$371,449, representing 0.51% 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, the Atlas Global
Growth Fund, the Atlas Growth and Income Fund and the Atlas Strategic
Growth Fund for the year ended December 31, 1999 are net of foreign
withholding taxes of $1,906, $48,335, $844 and $334, 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 December 31, 1999 amounted to $801,250
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,
59
<PAGE> 61
Notes to Financial Statements December 31, 1999
- --------------------------------------------------------------------------------
premiums received are realized as a gain at expiration date. If the
position is closed prior to expiration, a gain or loss is realized based
on premiums received less the cost of the closing transaction. When an
option is exercised, premiums received are added to the proceeds from the
sale of the underlying securities and a gain or loss is realized
accordingly. These same principles apply to the sale of put options.
k. Forward Contracts: The Stock Funds and Atlas Strategic Income Fund may
enter into forward foreign currency exchange contracts (forward
contracts) to hedge specific transactions or portfolio positions and to
protect the value of the portfolio against future changes in currency
exchange rates. A forward contract is an obligation to purchase or sell a
specific currency at an agreed upon future date at a price set on the day
of the contract.
The valuation of forward contracts, which may be owned by the Stock funds
and Atlas Strategic Income Fund, is based on the daily closing prices of
the forward currency contract rates in the London foreign exchange
markets as provided by pricing services. Gains or losses are realized
upon the closing or settlement of the forward transaction.
Securities are held in segregated accounts to cover net exposure on
outstanding forward contracts. Unrealized appreciation or depreciation on
forward contracts is reported in the Statement of Assets and Liabilities.
Realized gains and losses are reported with all other foreign currency
gains and losses in the Fund's Statement of Operations.
The risks associated with forward contracts include the potential default
of the other party to the contract and unanticipated movements in the
value of a foreign currency relative to the U.S. dollar.
l. Repurchase Agreements: The Funds may invest in repurchase agreements
secured by U.S. Government obligations or by other securities. Securities
pledged as collateral for repurchase agreements are held by the Funds'
custodian bank until maturity of the repurchase agreements. Provisions of
the agreements ensure that the market value of the collateral is
sufficient in the event of default; however, in the event of default or
bankruptcy by the other party to the agreements, realization and/or
retention of the collateral may be subject to legal proceedings.
m. Dollar Roll Transactions: The Atlas U.S. Government 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.
60
<PAGE> 62
- --------------------------------------------------------------------------------
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. During the year ended December 31, 1999, Atlas Growth and
Income Fund reclassified $1,240,780 from accumulated net realized gain to
paid in capital to reflect the differences between financial statement
amounts and distributions determined in accordance with income tax
regulations.
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 December 31, 1999, each Fund had the following unrealized appreciation
(depreciation) for federal income tax purposes (in 000's):
<TABLE>
<CAPTION>
Balanced Emerging Global Growth Growth and Strategic Growth
Fund Growth Fund Fund Income Fund Fund
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unrealized appreciation........ $ 7,415 $ 7,044 $ 25,576 $142,093 $29,135
Unrealized depreciation........ $(6,415) $ (890) $ (2,389) $(12,655) $(3,128)
-------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation)................. $ 1,000 $ 6,154 $ 23,187 $129,438 $26,007
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Cost of securities for federal
income tax purposes............ $80,093 $15,463 $ 53,796 $305,342 $90,990
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
<CAPTION>
California
Municipal
Bond Fund
<S> <C> <C>
Unrealized appreciation........ $ 4,983
Unrealized depreciation........ $ (8,417)
-------------------------
Net unrealized appreciation
(depreciation)................. $ (3,434)
-----------------------------------------
---------------------------------------------------------
Cost of securities for federal
income tax purposes............ $204,594
-------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
National U.S. Government California National
Municipal Strategic and Mortgage Municipal Municipal
Bond Fund Income Fund Securities Fund Money Fund Money Fund
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unrealized appreciation........ $ 1,405 $ 1,734 $ 538 $ 0 $ 0
Unrealized depreciation........ $(2,039) $(6,249) $ (8,702) $ 0 $ 0
-----------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation)................. $ (634) $(4,515) $ (8,164) $ 0 $ 0
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Cost of securities for federal
income tax purposes............ $56,455 $78,186 $220,489 $39,096 $4,819
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
<CAPTION>
U.S. Treasury
Money Fund
-----------------------------------------------------------------------------------------
<S> <C> <C>
Unrealized appreciation........ $ 0
Unrealized depreciation........ $ 0
-----------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation)................. $ 0
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Cost of securities for federal
income tax purposes............ $56,747
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
</TABLE>
3. SHARE TRANSACTIONS
The following is a summary of share transactions for the years ended December
31, 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> <C>
Sold... 1,582 3,283 17 35 260 718 8 9 1,055 926 17 11
Issued
in
reinvestment
of
dividends... 317 322 30 35 39 0 5 0 543 31 68 5
Redeemed... (2,350) (992) (138) (44) (476) (272) (59) (30) (462) (768) (56) (49)
-----------------------------------------------------------------------------------------
Net
increase
(decrease)... (451) 2,613 (91) 26 (177) 446 (46) (21) 1,136 189 29 (33)
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
</TABLE>
61
<PAGE> 63
Notes to Financial Statements December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Income Fund Strategic Growth Fund California Municipal 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... 4,441 2,904 73 52 954 1,547 11 39 3,183 2,694 47 19
Issued
in
reinvestment
of
dividends... 1,284 766 70 61 708 255 105 41 610 683 18 25
Redeemed.... (1,551) (1,623) (209) (130) (977) (817) (140) (94) (3,311) (2,001) (202) (51)
----------------------------------------------------------------------------------------------------
Net
increase
(decrease)... 4,174 2,047 (66) (17) 685 985 (24) (14) 482 1,376 (13) (7)
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
U.S. Government and
National Municipal Bond Fund Strategic Growth 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... 652 731 6 14 5,565 9,118 36 74 5,397 4,755 20 37
Issued
in
reinvestment
of
dividends... 187 221 9 12 553 461 51 56 865 792 23 27
Redeemed... (1,081) (628) (90) (19) (5,064) (3,573) (404) (242) (6,416) (4,134) (214) (104)
------------------------------------------------------------------------------------------------------
Net
increase
(decrease)... (242) 324 (75) 7 1,054 6,006 (317) (112) (154) 1,413 (171) (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... 27,193 31,055 3,135 2,701 43,977 50,707 634 800
Issued
in
reinvestment
of
dividends... 906 1,091 135 154 2,076 2,506 19 11
Redeemed... (29,266) (36,413) (4,229) (3,969) (48,346) (55,056) (666) (434)
--------------------------------------------------------------------------------
Net
increase
(decrease)...(1,167) (4,267) (959) (1,114) (2,293) (1,843) (13) 377
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
</TABLE>
4. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding short-term securities)
for the year ended December 31, 1999 were as follows (in 000's):
<TABLE>
<CAPTION>
California
Balanced Emerging Global Growth and Strategic Municipal
Fund Growth Fund Growth Fund Income Fund Growth Fund Bond Fund
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases...................... $54,261 $26,487 $49,345 $241,181 $140,316 $35,976
Sales.......................... $42,418 $29,118 $50,376 $310,559 $142,026 $39,045
------------------------------------------------------------------------
</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...................... $ 9,987 $90,332 $50,563 $0 $0 $0
Sales.......................... $17,531 $84,898 $45,269 $0 $0 $0
------------------------------------------------------------------------------
</TABLE>
At December 31, 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 2007
<S> <C> <C> <C> <C> <C> <C> <C>
California Municipal Bond Fund.............................. $ -- $ -- $ -- $ -- $ -- $-- $ 434
National Municipal Bond Fund................................ $ -- $ -- $ -- $ -- $ -- $-- $ 480
Strategic Income Fund....................................... $ -- $ -- $ -- $ -- $ -- $-- $1,582
U.S. Government and Mortgage Securities Fund................ $487 $5,195 $7,507 $1,491 $280 $52 $ 420
U.S. Treasury Money Fund.................................... $ -- $ -- $ -- $ 10 $ 5 $ 7 $ 2
</TABLE>
62
<PAGE> 64
- --------------------------------------------------------------------------------
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 December
31, 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 .70% to .75% per annum. Class A and Class B 12b-1 fees due
the Distributor were reduced in the amount of $494,542 and $10,034,
respectively. Management fees due the Adviser were reduced by $89,858. The
Adviser also absorbed $107,690 of other Fund expenses during the period. During
the year ended December 31, 1999, the Distributor received $120,006 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 December 31, 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.
63
<PAGE> 65
Notes to Financial Statements December 31, 1999
- --------------------------------------------------------------------------------
Industry and sector concentrations greater than 10% of a Fund's net assets at
December 31, 1999 are as follows:
The Balanced Fund has 28.63% in U.S. Treasury Notes and 14.81% in banks.
The Emerging Growth Fund has 20.14% in computer software and 12.37% in
information technology.
The Global Growth Fund has 18.11% in telecommunications.
The Growth and Income Fund has 12.09% in electronics and 10.95% in specialty
retailing.
The Strategic Growth Fund has 16.59% in electronics, 11.68% in computer
hardware and 10.78% in specialty retailing.
The California Municipal Bond Fund has 16.25% in water/sewer.
The National Municipal Bond Fund has 20.63% in general obligation bonds,
17.03% in health, 16.60% in public power and 11.05% in airport/seaport.
The California Municipal Money Fund has 16.02% in housing, 14.38% in
prerefunded bonds, 13.99% in public power, and 11.46% in transportation.
The National Municipal Money Fund has 44.28% in health and 21.99% in general
obligation bonds.
7. FORWARD CONTRACTS
Open forward contracts in the Funds to purchase and sell foreign currencies as
of December 31, 1999 were as follows:
<TABLE>
<CAPTION>
Contract
Settlement Amount Valuation as Unrealized
Date (000's) of 12/31/99 Gain (Loss)
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Global Growth Fund:
- -------------------
Contracts to Purchase:
- --------------------
British Pound Sterling................................... 01/04/00-01/05/00 19 GBP $ 31,239 $ (26)
Euro..................................................... 01/31/00 9 EUR 8,719 (393)
Japanese Yen............................................. 01/05/00 765 JPY 7,489 8
---------- --------
$ 47,447 (411)
========== --------
Contracts to Sell:
- ---------------
British Pound Sterling................................... 01/04/00-01/07/00 67 GBP $ 107,754 74
Euro..................................................... 01/31/00 148 EUR 142,656 6,289
---------- --------
$ 250,410 6,363
========== --------
Net unrealized gain...................................... $ 5,952
========
Strategic Income Fund:
- ---------------------
Contracts to Purchase:
- --------------------
British Pound Sterling................................... 01/24/00 40 GBP $ 64,602 $ --
Euro..................................................... 01/19/00-02/24/00 640 EUR 634,761 (27,582)
Japanese Yen............................................. 02/07/00 61,400 JPY 604,287 (579)
New Mexican Peso......................................... 02/17/00 1,554 MXP 164,011 4,027
Thai Baht................................................ 02/16/00-02/25/00 10,991 TLB 293,474 (368)
---------- --------
$1,761,135 (24,502)
========== --------
Contracts to Sell:
- ---------------
British Pound Sterling................................... 01/24/00-06/05/00 280 GBP $ 452,057 (2,643)
Euro..................................................... 01/19/00-06/05/00 1,138 EUR 1,113,453 62,364
Hong Kong Dollar......................................... 01/26/00-01/31/00 1,275 HKD 163,932 (3,933)
Japanese Yen............................................. 02/24/00 32,400 JPY 319,695 (9,660)
New Mexican Peso......................................... 02/17/00 3,255 MXP 343,536 (8,564)
Thai Baht................................................ 02/16/00-02/25/00 10,991 TLB 293,474 (8,508)
---------- --------
$2,686,147 29,056
========== --------
Net unrealized gain...................................... $ 4,554
========
</TABLE>
64
<PAGE> 66
- --------------------------------------------------------------------------------
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 December 31, 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:
- --------------------
European Government Bonds................................... 03/00 8 $ 837,206 $ (8,683)
U.S. Treasury Bonds......................................... 03/00 4 363,750 (7,437)
U.S. Treasury Notes......................................... 03/00 2 191,719 (3,016)
--------
(19,136)
--------
Contracts to Sell:
- ---------------
European Government Bonds................................... 03/00 18 $1,857,665 5,075
Japanese Government Bonds................................... 03/00 1 649,726 (8,462)
United Kingdom Government Bonds............................. 03/00 1 180,027 3,830
--------
443
--------
Net unrealized loss......................................... $(18,693)
========
</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 may 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.
65
<PAGE> 67
Notes to Financial Statements December 31, 1999
- --------------------------------------------------------------------------------
A Fund may write a put option as an alternative to purchasing a security. A
put option gives the holder the right to sell the underlying security to the
Fund at any time during the option period at a predetermined exercise price.
Writing a call option obligates the Fund to sell or deliver the option's
underlying security, in return for the strike price, upon exercise of the
option.
Premiums received are recorded as a liability which is marked to the market
daily to reflect the current value of the options. A Fund will realize a gain or
loss upon the expiration or closing of the option transaction. When an option is
exercised, the proceeds on sales for a written call option, the purchase cost
for a written put option, or the cost of the security for a purchased put or
call option is adjusted by the amount of the premium received or paid. If an
option expires or is canceled in a closing transaction, the Fund will realize a
gain or loss depending on whether the cost of the closing transaction, if any,
is lesser than or greater than the premium originally received.
Securities designated to cover outstanding call options are noted in the
Statements of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a
footnote to the Statements of Investments. Options written are reported as a
liability in the Statements of Assets and Liabilities. Gains and losses are
reported in the Statements of Operations.
The risk in writing a call option is that the Fund foregoes the opportunity
for profit if the value of the underlying security increases and the option is
exercised. The risk in writing a put option is that the Fund is exposed to a
potential loss if the value of the underlying security declines and the option
is exercised. Owning an option exposes the Fund to the risk of paying a premium
whether the option is exercised or not. Additional risk exists if an illiquid
secondary market does not allow for entering into a closing transaction.
Written option transactions in the Funds for the year ended December 31, 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>
Growth and Income Fund:
- ---------------------------
Options outstanding at December 31, 1998.................. 0 $ 0 0 $ 0
Options written........................................... 350 207,131 0 0
Options closed or expired................................. (350) (207,131) 0 0
Options exercised......................................... 0 0 0 0
------------ --------- ---------- --------
Options outstanding at December 31, 1999.................. 0 $ 0 0 $ 0
============ ========= ========== ========
Strategic Income Fund:
- -----------------------
Options outstanding at December 31, 1998.................. 38,971,800 $ 6,485 0 $ 0
Options written........................................... 128,494,225 12,895 7,698,745 95,249
Options closed or expired................................. (131,466,025) (15,652) (6,836,275) (80,970)
Options exercised......................................... 0 0 0 0
------------ --------- ---------- --------
Options outstanding at December 31, 1999.................. 36,000,000 $ 3,728 862,470 $ 14,279
============ ========= ========== ========
</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 December 31, 1999, the value of these securities and the resulting
percentage of net assets amounted to $2,595,634 or 3.58% 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.
66
<PAGE> 68
Independent Auditors' Report
- --------------------------------------------------------------------------------
The Board of Directors and Shareholders
Atlas Assets, Inc.:
We have audited the accompanying statements of assets and liabilities of the
Funds comprising Atlas Assets, Inc. (Atlas 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 Atlas U.S. Treasury Money Fund) (the "Funds"), including the statements of
investments in securities and net assets as of December 31, 1999, the related
statements of operations for the year ended December 31, 1999, the statements of
changes in net assets for the years ended December 31, 1999 and 1998, and the
financial highlights for each of the periods ended December 31, 1999, 1998,
1997, 1996, and 1995. These financial statements and financial highlights are
the responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1999 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each of the
respective Funds comprising Atlas Assets, Inc. at December 31, 1999, the results
of their operations, the changes in their net assets, and their financial
highlights for the respective stated periods in conformity with generally
accepted accounting principles.
[/s/ Deloitte & Touche LLP]
Oakland, California
February 11, 2000
67
<PAGE> 69
[ATLAS FUNDS LOGO] Atlas Funds
World Savings Operations Center
794 Davis Street
San Leandro, CA 94577
[RECYCLE LOGO] Printed on recycled paper
