<PAGE> 1
Table of Contents
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<TABLE>
<S> <C>
Letter from the Chairman of the Board and Chief Executive
Officer................................................... 2
Atlas Stock and Bond Fund Total Returns..................... 7
Statements of Investments in Securities and Net Assets...... 8
Statements of Assets and Liabilities........................ 32
Statements of Operations.................................... 34
Statements of Changes in Net Assets......................... 36
Financial Highlights........................................ 40
Notes to Financial Statements............................... 52
</TABLE>
[GRAPHIC]
We Want You To Know...
Atlas Funds are not FDIC-insured and are not deposits or obligations of,
or guaranteed by World Savings. Mutual fund returns and principal value
will vary and you may have a gain or loss when you sell.
<PAGE> 2
[ATLAS FUNDS LOGO]
FROM THE OFFICE OF MARION O. SANDLER
Chairman of the Board and Chief Executive Officer
Dear Valued Shareholder,
After five calendar years of double-digit gains, the
Dow Jones Industrial Average (the Dow) and the Standard
and Poor's 500 Index (S&P 500) lost ground during the
first six months of 2000, falling 9.1% and 1.0%,
respectively. The Nasdaq Composite Index (Nasdaq) was down
2.5%.
In its quest to slow the economy, the Federal
Reserve's Open Market Committee continued to increase
interest rates. Following three hikes in 1999, the Federal
Reserve raised the overnight federal funds rate by
one-quarter percent in February and again in March and by
one-half percent in May. As a result, the federal funds
rate hit a 9-year high of 6.5% by the end of second
quarter.
The Markets Year To Date
The U.S. economy maintained its strong growth during
the first half, although at a more moderate rate than
during the fourth quarter 1999. Unemployment edged
downward, hitting a low of 3.9% in April before closing
out the second quarter at 4.0%.
Consumer spending continued to fuel the economy during
the first quarter, with retail and home sales reaching
all-time highs. By spring, however, a combination of
rising interest rates and stock market corrections began
to have an impact. Consumer confidence retreated from
record levels, and for the first time in two years retail
sales posted back-to-back declines in April and May. Sales
of existing homes and autos also eased. By the end of the
second quarter, it appeared that the red-hot economy was
finally slowing.
It was a volatile period for the stock markets,
particularly the technology-heavy Nasdaq. The Nasdaq began
the year at 4,069, surged above 5,000 in March, then fell
over 37% to a low of 3,164 in May, before recovering to
3,966 by the end of June. Although the index had a net
loss of 2.5% for the first half, it maintained a gain of
nearly 48% for the 12-month period. The Dow also had its
ups and downs, posting negative returns for both quarters.
Many stocks, particularly in the technology sector, had
reached prices that were excessive by historical
standards. Profit taking set in as investors became
fearful about the impact of rising interest rates on
corporate profits and lost patience with the high-flying
"dot-coms," many of which had no earnings. A comforting
aspect of the sell-off was that money didn't leave the
market, but rather moved into more attractively priced
sectors that had been overlooked for some time.
2
<PAGE> 3
In the bond market, short-term rates responded to
Federal Reserve tightening, and yields on 6-month Treasury
bills rose from 5.73% at the beginning of the year to
6.22% on June 30. In contrast, prices on longer-term
Treasuries rallied and yields fell as the government
bought back bonds to reduce the national debt, and
inflationary expectations began to ease. Yields on 30-year
Treasury bonds fell from 6.48% at yearend 1999 to 5.90% at
the end of second quarter.
On June 30, the outlook for the rest of the year
remained uncertain. The labor market continued to be
tight, and retail inflation, as measured by the Consumer
Price Index, was running at an annualized rate of 3.5%,
compared to 1.7% in 1998 and 2.8% in 1999. The Federal
Reserve was keeping its options open, citing concerns
about future inflationary pressures.
The following sections provide an overview of the
Atlas Funds for the first half of 2000. Total returns
discussed below are for Class A shares. Of course, past
performance is no guarantee of future results, but the
funds' long-term track records are certainly worth
considering.
Stock Funds
The Strategic Growth Fund produced a first half total
return of 14.86%, significantly outdistancing the average
return for Large Growth funds of 3.07%.(1) Total return
for the year ended June 30 was an impressive 46.00%. The
fund has been given a prestigious five-star ranking by
Morningstar,(2) and it was also awarded five stars by
Mutual Funds magazine.(3) It invests primarily in stocks
of medium to large growth-oriented U.S. companies with
above-average appreciation potential. During the first
half, the manager maintained the fund's relatively heavy
positions in technology and economically sensitive
consumer stocks, believing that these sectors continued to
have strong growth prospects. At the end of the period,
the portfolio was 81% invested in stock and 19% in cash.
The Global Growth Fund achieved a total return of
9.23% during the first half, while the average World Stock
fund fell 0.49%.(4) The average annual total return for
the year ended June 30 was a noteworthy 52.35%. Since it
became eligible for a rating in April 1999, the fund has
maintained a coveted five-star ranking from
Morningstar.(2) The portfolio is invested in stocks of
growth-oriented companies throughout the world, with a
substantial
(1) Morningstar: In the Large Growth category, the fund
ranked in the top 7% of 686 funds for 6 months, the
top 13% of 686 funds for one year, and the top 45%
of 304 funds for five years ended 6/30/00.
(2) Morningstar proprietary ratings reflect historical
risk-adjusted performance as of 6/30/00 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 Strategic
Growth Fund and the Growth and Income Fund were rated 4 stars
for 3 years and 5 stars for 5 years among 3,642 and 2,328
domestic equity funds, respectively. The Global Growth
fund was rated 5 stars for 3 years among 1,148 international
equity funds. The U.S. Government and Mortgage Securities
Fund was rated 4 stars for 3-, 5-, and 10-years among
1,684; 1,287; and 381 fixed income funds. The top 10%
of funds in each category earn 5 stars, and the next 22.5%
receive 4 stars.
(3) Mutual Funds magazine's overall ratings among 2,420
equity funds as of June 2000. Ratings reflect
historical risk-adjusted performance and are subject to
change. Ratings are based on total return over two to ten
years, adjusted for sales loads. The top 20% of funds receive
five stars.
(4) Morningstar: In the World Stock category, the fund
ranked in the top 8% of 284 funds for 6 months, the
top 9% of 284 funds for one year, and the top 9% of 202 funds
for three years ended 6/30/00.
3
<PAGE> 4
portion in the U.S. and Western Europe. During the first
half, the fund's holdings were balanced primarily between
technology and more defensive stocks, such as consumer
staples. At the end of the second quarter, 42% of assets
were in U.S. markets, 39% in Europe, and 8% in Japan.
Ninety-one percent of investments were in stocks and 9% in
cash.
The Growth and Income Fund produced a total return of
5.32% for six months, outperforming the average return of
3.07% for its peer group.(5) The total return for the year
ended June 30 was 21.95%. The fund has received a
five-star rating from Morningstar (2) and in June was also
awarded five stars by Mutual Funds magazine.(3) It invests
in a combination of growth stocks believed to have
superior earnings potential and value stocks with
attractive prices. The fund's performance during the first
half was attributed to holdings in technology,
particularly fiber optics and optical networking. As of
June 30, the portfolio was 72% invested in stocks, 4% in
bonds and convertible securities, and 24% in cash. The
high cash level was due to the difficulty in finding
quality companies, rather than a defensive outlook on the
market.
The Balanced Fund returned -2.70% for the first half
of the year. The fund invests in a diversified portfolio
of stocks and government and investment grade corporate
bonds, adjusting the mix to take advantage of "up markets"
and conserve capital in "down markets." In March, in
response to disappointing performance, Oppenheimer
assigned a new manager to the fund. He has added a number
of reasonably priced growth stocks to the fund's equity
holdings, which in the past consisted primarily of value
stocks -- such as energy, financials, and utilities. He
was able to take advantage of the correction in technology
to add to positions in that sector at attractive prices.
At the end of the period, 64% of the portfolio was in
stocks, 34% in bonds, and 2% in cash.
The Emerging Growth Fund fell 6.55% for the first six
months, but returned 45.16% for the one-year period. The
fund invests primarily in stocks of small, growth-oriented
U.S. companies, focusing on companies with innovative
products and leadership potential in their markets. The
fund's performance during the first half reflects its
exposure to internet-related stocks, which were some of
the hardest hit during the technology correction. The fund
manager continues to emphasize businesses that exhibit
solid fundamentals, including strong growth in sales and
revenues, and believes future prospects for these
companies continue to be attractive. On June 30, the
portfolio was 80% invested in stocks and 20% in cash.
Bond Funds
The California Municipal Bond Fund delivered a total
return of 4.90% for the first six months. On June 30, the
fund's double tax-free 30-day yield was 4.46%, for a
taxable equivalent yield of 8.14%. The National Municipal
Bond Fund returned 3.95% for the first
(5) Morningstar: In the Large Growth category, the fund
ranked in the top 30% of 686 funds for 6 months, the
top 56% of 686 funds for one year, and the top 53% of 304
funds for five years ended 6/30/00.
4
<PAGE> 5
half, and ended the period with a tax-free yield of 4.70%,
for a taxable equivalent yield of 7.78%. In the face of
interest rate uncertainties, the fund's manager has
maintained a neutral position with respect to maturities,
while maintaining high credit quality. The California
Municipal Bond Fund holds 80% of the portfolio in bonds
rated AAA and AA, and the National Municipal Bond Fund has
67% of assets in the two highest grades.(6)
Despite a period of volatility in interest rates, the
U.S. Government and Mortgage Securities Fund had a total
return of 3.21% for the first half. The fund has continued
to produce outstanding yields for shareholders, and at the
end of the second quarter the 30-day yield was an
attractive 6.39%. The fund has been recognized by
Morningstar with a four-star rating for risk-adjusted
total return.(2) The portfolio remained invested
exclusively in mortgage-backed securities rated AAA or the
equivalent. During the first half, the fund was helped by
falling yields in the Treasury market and, going forward,
is well-positioned to take advantage of any future drops
in interest rates.
The Strategic Income Fund returned 1.47% for the first
half, placing it in the top 30% of its peer group.(7) In
its search for high yields, the fund spreads its assets
across three broad sectors of the bond market: U.S.
Government securities, foreign fixed income debt, and
high-yield, lower-rated U.S. corporates. At the end of
second quarter, fund managers believed the economy was
cooling and that the U.S. was headed for a "soft landing,"
a scenario that would increase the attractiveness of bonds
for investors. As of June 30, the 30-day yield was 8.02%,
and the portfolio was 30% invested in U.S. Government
securities, 31% in high-yield debt, 29% in foreign bonds,
and 10% in cash.
Money Funds
During the first six months of the year, the Atlas
Money Funds -- U.S. Treasury Money, California Municipal
Money, and National Municipal Money -- provided investors
with attractive yields, after-tax advantages, and money
market stability. Unlike many of their peers, our money
funds hold only top quality securities. On June 30, the
7-day yield for the U.S. Treasury Money Fund was 5.30%,
and the income is 100% exempt from state income tax.
Tax-free yields for the California Money Fund and the
National Money Fund were 3.56% and 4.02%, respectively,
for taxable equivalent yields of 6.61% and 6.79%.
Coming Soon: The Atlas S&P 500 Index Fund
During the third quarter, we will introduce the new
Atlas S&P 500 Index Fund. The fund seeks to track the
performance of the Standard and Poor's 500 Index,(8) which
consists of the stocks of 500 of the largest publicly
traded U.S. companies. It will provide investors with
long-term growth potential and an easy way to achieve
broad diversification. Since
(6) Lipper LPAR, March 31, 2000
(7) Morningstar: In the Multisector Bond category, the
fund ranked in the top 30% of 141 funds for 6 months
and the top 43% of 141 funds for one year ended 6/30/00.
(8) "Standard & Poor's 500," "S&P 500(R)", and "S&P" are
trademarks of Standard and Poor's Corporation and have
been licensed for use. The fund is not sponsored,
endorsed, sold, or promoted by S&P.
5
<PAGE> 6
index funds generally have low portfolio turnover, you may
enjoy lower capital gains taxes as well. To find out
whether the Atlas S&P 500 Index Fund is right for you,
talk with your Atlas Representative, or call
1-800-933-ATLAS for an appointment.
New Investment Choices Available Through Atlas Portfolio
Builder
In the second quarter, we enhanced Atlas Portfolio
Builder, our variable annuity, to include 12 new
investment choices from prestigious money managers, such
as Janus, Dreyfus, AIM, and Alliance. At the end of June,
there were 16 four and five-star portfolios available to
investors, as well as a variety of fixed rate options. For
more information on the benefits of variable annuities and
how to put tax-deferred growth to work for you, call Atlas
today at 1-800-933-ATLAS, or visit your Atlas
Representative at a nearby World branch.
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. Atlas offers you the kind
of personal attention and professional advice that most no
load funds simply do not provide.
As a sister company of World Savings and a member of
the $50 billion-strong Golden West Financial Corporation,
Atlas is dedicated to giving you the quality products and
personal service you've come to expect from World. Your
Atlas Representative will be happy to answer any questions
you have about your funds and annuities, or prepare a
complimentary review of your investment portfolio. For an
appointment, just call 1-800-933-ATLAS.
We appreciate the trust you've placed in Atlas, and we
look forward to serving you for many years to come.
Sincerely,
(SANDLER SIGNATURE)
Marion O. Sandler
Chairman of the Board and Chief Executive Officer
6
<PAGE> 7
Atlas Stock and Bond Fund Total Returns for periods ended June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Shares Class B Shares
----------------------------------- -------------------------------
10 Years or
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(2) charge
% % % % % %
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Stock Funds:
Balanced --------------------- (10.69) 9.37 8.74 9/93 (11.21) (13.72) 8.78
Emerging Growth ------------- 45.16 N.A. 21.07 4/97 44.19 41.19 N.A.
Global Growth ---------------- 52.35 N.A. 27.21 4/96 51.70 48.70 N.A.
Growth and Income ----------- 21.95 24.85 19.31 12/90 21.33 18.33 24.24
Strategic Growth -------------- 46.00 25.37 21.32 9/93 45.24 42.24 24.70
Bond Funds:
California
Municipal Bond -------------- 1.69 4.85 6.42(1) 1/90 1.27 (1.64) 4.34
National
Municipal Bond -------------- 0.91 4.62 6.47(1) 1/90 0.31 (2.56) 4.08
Strategic Income -------------- 3.52 N.A. 6.25 5/96 2.93 0.08 N.A.
U.S. Government
and Mortgage Securities ------- 3.76 5.49 7.08(1) 1/90 3.23 0.30 4.97
<CAPTION>
Class B Shares
--------------------------------
Since Inception
--------------------------------
without with inception
deferred deferred date
sales sales
charge charge(2)
% %
<S> <C> <C> <C>
Stock Funds:
Balanced --------------------- 9.92 9.92 7/94
Emerging Growth ------------- 20.27 19.85 4/97
Global Growth ---------------- 26.51 26.39 4/96
Growth and Income ----------- 23.94 23.94 7/94
Strategic Growth -------------- 23.69 23.69 7/94
Bond Funds:
California
Municipal Bond -------------- 4.64 4.64 7/94
National
Municipal Bond -------------- 4.58 4.58 7/94
Strategic Income -------------- 5.47 5.29 5/96
U.S. Government
and Mortgage Securities ------- 6.00 6.00 7/94
</TABLE>
(1) 10-year return.
(2) Assumes complete redemption at the end of the given period and imposition of
the maximum Contingent Deferred Sales Charge. There is no deferred sales
charge after five years.
7
<PAGE> 8
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund
--------------------------------------------------------------------
shares or value
face amount (note 1)
---------- ----------
<S> <C> <C>
COMMON STOCKS - 64.17%
Automotive - .44%
Gentex Corp. (b).................. 10,000 $ 251,250
Bank Holding Companies - 3.10%
Bank of America Corp.............. 10,000 430,000
Chase Manhattan Corp.............. 13,500 621,844
FleetBoston Financial Corp........ 20,688 703,392
Beverages - 1.07%
Adolph Coors Co., Cl. B........... 10,000 605,000
Broadcasting - 2.12%
AMFM, Inc. (b).................... 5,000 345,000
Fox Entertainment Group, Inc., Cl.
A (b)............................. 10,000 303,750
Infinity Broadcasting Corp., Cl. A
(b)............................... 15,000 546,562
Chemicals - .37%
Lafarge Corp...................... 10,000 210,000
Commercial Finance - .92%
Convergys Corp. (b)............... 10,000 518,750
Communication Equipment - 9.43%
ADC Telecommunications, Inc.
(b)............................... 14,000 1,174,250
Cisco Systems, Inc. (b)........... 16,000 1,017,000
L.M. Ericsson Telephone Co., Cl.
B, ADR............................ 20,000 400,000
Lucent Technologies, Inc.......... 8,000 474,000
Nokia Corp., Sponsored ADR........ 15,200 759,050
Nortel Networks Corp.............. 12,000 819,000
Tellabs, Inc. (b)................. 10,000 684,375
Computer Hardware - 1.48%
Dell Computer Corp. (b)........... 17,000 838,312
Computer Services - .03%
Palm, Inc. (b).................... 600 20,025
Computer Software - 2.73%
Microsoft Corp. (b)............... 14,000 1,120,000
Oracle Corp. (b).................. 5,000 420,312
Diversified Financial - 2.78%
Boston Properties, Inc............ 8,000 309,000
Citigroup, Inc.................... 14,000 843,500
Morgan Stanley Dean Witter &
Co................................ 5,000 416,250
Drugs/Bio-Pharmaceuticals - 1.54%
Elan Corp., PLC, ADR (b).......... 18,000 871,875
Electric Utilities - 1.13%
AES Corp. (The) (b)............... 14,000 638,750
Electrical Equipment - 1.54%
Integrated Device Technology, Inc.
(b)............................... 5,000 299,375
Vishay Intertechnology, Inc.
(b)............................... 15,000 569,063
Electronics - 11.63%
Amkor Technology, Inc. (b)........ 20,000 706,250
Analog Devices, Inc. (b).......... 8,000 608,000
Atmel Corp. (b)................... 8,000 295,000
Cypress Semiconductor Corp. (b)... 9,000 380,250
Fairchild Semiconductor Corp., Cl.
A (b)............................. 20,000 810,000
Flextronics International Ltd.
(b)............................... 7,000 480,812
Motorola, Inc..................... 26,400 767,250
National Semiconductor Corp.
(b)............................... 8,000 454,000
Novellus Systems, Inc. (b)........ 10,000 565,625
Qlogic Corp. (b).................. 6,000 396,375
Vitesse Semiconductor Corp. (b)... 10,000 735,625
Waters Corp. (b).................. 3,000 374,438
Food - .66%
Keebler Foods Co.................. 10,000 371,250
</TABLE>
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
--------------------------------------------------------------------
shares or value
face amount (note 1)
----------- ------------
<S> <C> <C>
Food and Drug Retailers - 1.06%
CVS Corp.......................... 15,000 $ 600,000
Gas Utilities - 1.14%
Enron Corp........................ 10,000 645,000
Health Care/Drugs - 2.92%
Amgen, Inc. (b)................... 13,000 913,250
Pfizer, Inc....................... 15,250 732,000
Health Care/Supplies &
Services - 1.06%
Baxter International, Inc......... 5,000 351,562
Medtronic, Inc.................... 5,000 249,063
Industrial Services - .35%
Knightsbridge Tankers Ltd......... 10,000 200,000
Insurance - .54%
AXA Financial, Inc................ 9,000 306,000
Leisure - .68%
Harley-Davidson, Inc.............. 10,000 385,000
Manufacturing - 3.30%
Dover Corp........................ 15,000 608,438
Honeywell International, Inc...... 9,000 303,188
Tyco International Ltd............ 20,166 955,364
Oil - Domestic - 2.69%
Exxon Mobil Corp.................. 6,000 471,000
Tosco Corp........................ 15,000 424,688
USX-Marathon Group................ 25,000 626,562
Oil - International - .82%
Total Fina SA, Sponsored ADR...... 6,000 460,875
Paper - .42%
International Paper Co............ 8,000 238,500
Publishing - .77%
News Corp. Ltd. (The), Sponsored
ADR............................... 8,000 436,000
Railroads & Trucking - .38%
CSX Corp. ........................ 10,000 211,875
Shipping - .67%
FedEx Corp. (b)................... 10,000 380,000
Specialty Retailing - 1.34%
RadioShack Corp. ................. 12,000 568,500
TJX Cos., Inc. ................... 10,000 187,500
Telecommunications - Long Distance - .67%
Intermedia Communications, Inc.
(b)............................... 5,000 148,750
WorldCom, Inc. (b)................ 5,000 229,375
Telephone - Utility - 1.28%
Broadwing, Inc. (b)............... 28,000 726,250
Wireless - 3.11%
Amdocs Ltd. (b)................... 5,000 383,750
Nextel Communications, Inc., Cl. A
(b)............................... 10,000 611,875
Vodafone AirTouch PLC, Sponsored
ADR............................... 12,000 497,250
Williams Communications Group,
Inc. (b).......................... 8,000 265,500
------------
Total Common Stocks (cost:
$33,007,106)..................... 36,271,675
------------
CORPORATE BONDS - 7.22%
Diversified Financial - 3.53%
CIT Group, Inc., 7.375% due
03/15/03.......................... $1,000,000 986,942
Household Finance Corp., 8% due
05/09/05.......................... $1,000,000 1,007,916
Electric Utilities - 1.77%
Constellation Energy Group, 7.875%
due 04/01/05...................... $1,000,000 1,001,669
Energy Services - .92%
Central Hudson Gas & Electric
Corp., 9.25% due 05/01/21......... $ 500,000 517,416
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE> 9
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
--------------------------------------------------------------------
shares or value
face amount (note 1)
----------- ------------
<S> <C> <C>
Railroads & Trucking - 1.00%
Union Pacific Corp., 6.39% due
11/01/04.......................... $ 600,000 $ 568,352
------------
Total Corporate Bonds (cost:
$4,114,292)...................... 4,082,295
------------
MORTGAGE-BACKED OBLIGATIONS - 22.67%
Government Agencies - 22.67%
Federal Home Loan Mortgage Corp.,
8% due 04/15/07................... $3,047,147 3,082,372
Federal National Mortgage
Association, 6.50% due 04/01/28... $5,000,000 4,714,050
8.00% due 04/01/27................ $5,000,000 5,021,100
------------
Total Mortgage-Backed Obligations
(cost: $12,736,651).............. 12,817,522
------------
UNITED STATES TREASURY NOTES - 4.21%
6.50% due 02/15/10................ $2,300,000 2,378,345
------------
Total U.S. Treasury Notes (cost:
$2,371,857)...................... 2,378,345
------------
SHORT-TERM SECURITIES - 18.29%
Triparty Repurchase Agreement dated
June 30, 2000 with Prudential
Securities, Inc., effective yield
of 5.75%, due July 3, 2000,
collateralized by FHLMC, 7.50%,
April 1, 2028 with a value of
$10,546,583....................... $10,339,624 10,339,624
------------
Total Short-Term Securities (cost:
$10,339,624)..................... 10,339,624
------------
TOTAL SECURITIES (COST:
$62,569,530) - 116.56%............. 65,889,461
OTHER ASSETS AND LIABILITIES,
NET - (16.56)%..................... (9,361,325)
------------
NET ASSETS - 100.00%................. $ 56,528,136
============
</TABLE>
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund
--------------------------------------------------------------------
shares or value
face amount (note 1)
--------------- -----------
<S> <C> <C>
COMMON STOCKS - 79.91%
Aerospace/Defense - .45%
Armor Holdings, Inc. (b)......... 10,000 $ 130,000
Banks - 2.01%
Investors Financial Services
Corp. ........................... 10,000 396,875
Labranche & Co., Inc. (b)........ 12,900 185,438
Broadcasting - .93%
Citadel Communications Corp.
(b).............................. 5,000 174,688
New Frontier Media, Inc. (b)..... 13,000 95,063
Chemicals - .65%
Cabot Microelectronics Corp.
(b).............................. 4,100 187,575
Communication Equipment - 4.59%
Advanced Fibre Communications,
Inc. (b)......................... 4,300 194,844
Audiovox Corp. (b)............... 5,800 127,963
Aware, Inc. (b).................. 900 46,013
Com21, Inc. (b).................. 5,700 142,500
Efficient Networks, Inc. (b)..... 3,000 220,688
Extreme Networks, Inc. (b)....... 1,300 137,150
Inet Technologies, Inc. (b)...... 2,500 135,625
</TABLE>
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund (continued)
--------------------------------------------------------------------
shares or value
face amount (note 1)
--------------- -----------
<S> <C> <C>
International FiberCom, Inc.
(b).............................. 7,300 $ 186,150
ViaSat, Inc. (b)................. 2,600 141,050
Computer Hardware - 4.59%
ActivCard S.A. (b)............... 3,300 63,525
Cobalt Networks, Inc. (b)........ 2,200 127,325
Creo Products, Inc. (b).......... 7,600 172,900
M-Systems Flash Disk Pioneers,
Ltd. (b)......................... 1,500 116,813
Network Appliance, Inc. (b)...... 3,200 257,600
Optimal Robotics Corp. (b)....... 5,500 211,063
SanDisk Corp. (b)................ 3,200 195,800
Splash Technology Holdings, Inc.
(b).............................. 3,900 30,713
Xircom, Inc. (b)................. 3,300 156,750
Computer Services - 6.02%
Anicom, Inc. (b)................. 16,800 63,000
AppNet, Inc. (b)................. 3,700 133,200
Art Technology Group, Inc. (b)... 2,600 262,438
Braun Consulting, Inc. (b)....... 5,000 105,625
iBasis, Inc. (b)................. 4,000 172,250
Inforte Corp. (b)................ 3,500 126,000
Internet Pictures Corp. (b)...... 7,100 107,388
Madge Networks N.V. (b).......... 14,900 67,981
MedQuist, Inc. (b)............... 439 14,926
Pivotal Corp. (b)................ 3,600 84,600
Predictive Systems, Inc. (b)..... 2,400 86,250
Turnstone Systems, Inc. (b)...... 900 149,105
Universal Access, Inc. (b)....... 2,300 56,350
WatchGuard Technologies, Inc.
(b).............................. 3,400 186,788
WebTrends Corp. (b).............. 3,400 131,538
Computer Software - 17.16%
Accrue Software, Inc. (b)........ 3,350 118,925
Active Software, Inc. (b)........ 2,600 201,988
Advent Software, Inc. (b)........ 12,600 812,700
Allaire Corp. (b)................ 2,000 73,500
Bluestone Software, Inc. (b)..... 4,600 118,163
Data Return Corp. (b)............ 3,200 92,800
Exchange Applications, Inc.
(b).............................. 4,600 122,475
Informatica Corp. (b)............ 3,200 262,200
Interactive Intelligence, Inc.
(b).............................. 5,000 187,500
ISS Group, Inc. (b).............. 1,800 177,722
Metasolv Software, Inc. (b)...... 1,000 44,000
Micromuse, Inc. (b).............. 3,600 595,744
NetIQ Corp. (b).................. 6,600 393,525
Numerical Technologies, Inc.
(b).............................. 2,400 116,700
Portal Software, Inc. (b)........ 2,500 159,688
Primus Knowledge Solutions, Inc.
(b).............................. 3,200 144,000
Project Software & Development,
Inc. (b)......................... 3,600 64,800
Psion plc........................ 14,000 135,550
Quest Software, Inc. (b)......... 3,100 171,663
SERENA Software, Inc. (b)........ 8,200 372,332
Software.com, Inc. (b)........... 1,500 194,813
SonicWall, Inc. (b).............. 2,100 184,931
TenFold Corp. (b)................ 3,800 62,463
Verity, Inc. (b)................. 4,500 171,000
Consumer Services - 1.60%
Getty Images, Inc. (b)........... 4,200 155,663
Heidrick & Struggles
International, Inc. (b).......... 4,900 309,313
</TABLE>
9
<PAGE> 10
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund (continued)
--------------------------------------------------------------------
shares or value
face amount (note 1)
--------------- -----------
<S> <C> <C>
Diversified Media - .81%
LifeMinders.com, Inc. (b)........ 3,500 $ 103,469
True North Communications,
Inc. ............................ 3,000 132,000
Drugs/Bio-Pharmaceuticals - 2.91%
Abgenix, Inc. (b)................ 2,400 287,663
Cubist Pharmaceuticals, Inc.
(b).............................. 4,600 226,550
CV Therapeutics, Inc. (b)........ 3,600 249,525
XOMA, Ltd. (b)................... 18,700 80,040
Education - 1.01%
Corinthian Colleges, Inc. (b).... 6,000 140,625
ProsoftTraining.com (b).......... 9,000 151,313
Electrical Equipment - .85%
KEMET Corp. (b).................. 4,600 115,288
Vishay Intertechnology, Inc.
(b).............................. 3,450 130,884
Electronics - 8.91%
Act Manufacturing, Inc. (b)...... 3,300 153,244
Advanced Energy Industries, Inc.
(b).............................. 2,500 147,344
Alpha Industries, Inc. (b)....... 4,000 176,250
ANADIGICS, Inc. (b).............. 1,900 64,719
ASM International NV (b)......... 6,300 166,950
ATMI, Inc. (b)................... 6,000 279,000
Brooks Automation, Inc. (b)...... 3,800 242,963
Chartered Semiconductor
Manufacturing, Ltd. (b).......... 1,100 99,000
DDi Corp. (b).................... 2,200 62,700
DSP Group, Inc. (b).............. 3,700 207,200
Intersil Holding Corp. (b)....... 3,900 210,844
InterTAN, Inc. (b)............... 8,000 94,000
Metron Technology NV (b)......... 5,100 64,308
Photon Dynamics, Inc. (b)........ 2,800 209,125
Silicon Image, Inc. (b).......... 1,000 49,875
Virata Corp. (b)................. 6,000 357,750
Energy Services - .75%
Cal Dive International, Inc.
(b).............................. 4,000 216,750
Entertainment - 1.51%
Cinar Films, Inc., Cl .B
(b)(f)........................... 13,800 82,110
Imax Corp. (b)................... 5,000 113,750
Macrovision Corp. (b)............ 3,800 242,903
Health Care/Drugs - 4.11%
Lynx Therapeutics, Inc. (b)...... 5,500 261,594
Neurocrine Biosciences, Inc.
(b).............................. 9,100 323,619
PRAECIS Pharmaceuticals, Inc.
(b).............................. 7,900 220,213
Repligen Corp. (b)............... 2,000 12,563
Syncor International Corp. (b)... 3,700 266,400
Ventana Medical Systems, Inc.
(b).............................. 4,600 108,100
Health Care/Supplies &
Services - 1.34%
EP MedSystems, Inc. (b).......... 15,800 77,025
Zoll Medical Corp. (b)........... 2,400 117,600
Renal Care Group, Inc. (b)....... 8,000 195,625
Industrial Services - 5.81%
Asyst Technologies, Inc. (b)..... 7,400 253,450
Corporate Executive Board Co.
(b).............................. 8,700 520,913
Keynote Systems, Inc. (b)........ 3,100 218,744
National Computer Systems,
Inc. ............................ 3,400 167,450
Source Information Management Co.
(b).............................. 7,700 117,425
Tetra Tech, Inc. (b)............. 17,900 409,463
</TABLE>
<TABLE>
<CAPTION>
Atlas Emerging Growth Fund (continued)
--------------------------------------------------------------------
shares or value
face amount (note 1)
--------------- -----------
<S> <C> <C>
Insurance - .42%
Advance Paradigm, Inc. (b)....... 6,000 $ 123,000
Leasing & Factoring - .52%
MicroFinancial, Inc. ............ 15,000 150,000
Leisure - .63%
Handleman Co. (b)................ 14,600 182,500
Manufacturing - 1.45%
AstroPower, Inc. (b)............. 7,000 189,875
Koala Corp. (b).................. 10,000 141,250
PRI Automation, Inc. (b)......... 1,400 91,547
Printing, Publishing & Allied Products - .12%
T/R Systems, Inc. (b)............ 5,300 33,788
Restaurants - 2.12%
Buca, Inc. (b)................... 18,300 285,938
P.F. Chang's China Bistro, Inc.
(b).............................. 10,300 328,956
Specialty Retailing - 2.83%
Copart, Inc. (b)................. 11,400 182,400
Factory 2-U Stores, Inc. (b)..... 7,000 264,688
School Specialty, Inc. (b)....... 10,100 187,481
Tweeter Home Entertainment Group,
Inc. (b)......................... 6,100 185,288
Telecommunications - Long Distance - 3.95%
Clarent Corp. (b)................ 1,900 135,850
Corsair Communications, Inc.
(b).............................. 2,600 74,750
MGC Communications, Inc. (b)..... 8,000 479,500
MRV Communications, Inc. (b)..... 2,000 134,500
Network Plus Corp. (b)........... 4,900 69,519
Startec Global Communications
Corp. (b)........................ 6,000 64,125
Triton PCS Holdings, Inc., Cl. A
(b).............................. 2,600 150,150
Z-Tel Technologies, Inc. (b)..... 3,100 37,200
Wireless - 1.86%
AirGate PCS, Inc. (b)............ 1,400 73,588
Alamosa PCS Holdings, Inc. (b)... 3,800 79,325
Dobson Communications Corp.
(b).............................. 5,700 109,725
Proxim, Inc. (b)................. 2,800 277,113
---------
Total Common Stocks (cost: $18,878,217) 23,186,090
---------
SHORT-TERM SECURITIES - 20.19%
Triparty Repurchase Agreement
dated June 30, 2000 with
Prudential Securities, Inc.,
effective yield of 5.75%, due
July 3, 2000, collateralized by
FHLMC, 7.50%, April 1, 2028 with
a value of $5,975,375............ $5,858,188 5,858,188
---------
Total Short-Term Securities (cost: $5,858,188) 5,858,188
---------
TOTAL SECURITIES (COST: $24,736,405) - 100.10% 29,044,278
OTHER ASSETS AND LIABILITIES, NET - (.10)% (27,250)
---------
NET ASSETS - 100.00% $29,017,028
---------
---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE> 11
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Global Growth Fund
--------------------------------------------------------------------
shares or value
face amount (note 1)
--------------- ------------
<S> <C> <C>
COMMON STOCKS - 91.48%
Automotive - 3.71%
Autoliv, Inc. .................. 7,300 $ 179,304
General Motors Corp. ........... 28,900 1,678,006
Porsche AG, Preference.......... 1,160 3,161,197
Bank Holding Companies - 1.60%
Bank One Corp. ................. 18,800 499,375
Royal Bank of Scotland Group PLC
(The)........................... 99,150 1,661,567
Banks - 1.06%
Australia & New Zealand Banking
Group, Ltd. .................... 188,100 1,440,195
Broadcasting - 4.07%
Canal Plus...................... 3,903 656,841
Grupo Televisa SA, Sponsored GDR
(b)............................. 21,870 1,507,663
ProSieben Media AG,
Preference...................... 9,145 1,145,523
Television Broadcast, Ltd.
(b)............................. 131,500 877,116
Television Francaise 1.......... 18,800 1,312,289
Broker-Dealers - 1.06%
Lehman Brothers Holdings,
Inc. ........................... 15,100 1,427,894
Building Materials - .96%
Hanson Trust PLC................ 183,700 1,299,858
Cable Television - .15%
TeleWest Communications PLC
(b)............................. 60,299 208,305
Chemicals - 1.37%
International Flavors &
Fragrances, Inc. ............... 61,180 1,846,871
Communication Equipment - 6.97%
Alcatel Alsthom................. 64,450 4,233,781
L.M. Ericsson Telephone Co., Cl.
B, ADR.......................... 61,200 1,224,000
Nokia Corp., Cl. A, Sponsored
ADR............................. 25,080 1,252,433
QUALCOMM, Inc. (b).............. 19,520 1,171,200
Scientific-Atlanta, Inc. ....... 20,860 1,554,070
Computer Hardware - 1.46%
International Business Machines
Corp. .......................... 5,010 548,908
Sun Microsystems, Inc. (b)...... 15,700 1,427,719
Computer Services - 2.04%
Cap Gemini Sogeti SA............ 6,800 1,199,649
Getronics NV.................... 101,280 1,564,030
Computer Software - 6.91%
America Online, Inc. (b)........ 10,100 523,680
Cadence Design Systems, Inc.
(b)............................. 221,800 4,519,175
Intuit, Inc. (b)................ 9,400 388,925
Lernout & Hauspie Speech
Products NV (b)................. 23,600 1,039,875
Oracle Corp. (b)................ 16,980 1,427,381
Sybase, Inc. (b)................ 63,200 1,453,600
Conglomerate - 1.42%
Bombadier, Inc., Cl. B.......... 70,800 1,920,917
Consumer Finance - 1.14%
Federal National Mortgage
Association..................... 29,510 1,540,053
Diversified Financial - 4.65%
American Express Co. ........... 15,600 813,150
Associates First Capital
Corp. .......................... 4,900 109,331
Citigroup, Inc. ................ 19,400 1,168,850
Credit Saison Co., Ltd. ........ 35,000 809,896
</TABLE>
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
--------------------------------------------------------------------
shares or value
face amount (note 1)
--------------- ------------
<S> <C> <C>
DePfa Deutsche Pfandbriefbank
AG.............................. 5,600 $ 562,781
ICICI, Ltd., Sponsored ADR...... 67,900 1,273,125
MBNA Corp. ..................... 57,500 1,559,688
Diversified Media - 1.01%
Singapore Press Holdings,
Ltd. ........................... 87,000 1,358,589
Drugs & Health Care - 8.19%
American Home Products Corp. ... 23,700 1,392,375
Amgen, Inc. (b)................. 18,660 1,310,865
Eisai Co., Ltd. ................ 40,000 1,279,278
Fresenius AG, Preference........ 13,700 3,130,886
Genset, Sponsored ADR (b)....... 19,200 444,000
Gilead Sciences, Inc. (b)....... 21,600 1,536,300
Millenium Pharmaceuticals, Inc.
(b)............................. 7,500 839,063
Pfizer, Inc. ................... 17,300 830,400
Pliva d.d., Sponsored GDR
(a)(b).......................... 30,450 316,680
Drugs/Bio-Pharmaceuticals - 3.44%
Affymetrix, Inc. (b)............ 3,900 643,988
Elan Corp. PLC ADR (b).......... 44,200 2,140,938
Human Genome Sciences, Inc.
(b)............................. 6,400 853,600
Oxford GlycoSciences PLC........ 7,900 224,439
Serono SA....................... 900 751,105
Taisho Pharmaceutical Co.,
Ltd. ........................... 1,260 45,038
Electronics - 12.01%
Hirose Electric Co., Ltd. ...... 4,000 621,202
Koninklijke (Royal) Philips
Electronics N.V. ............... 27,200 1,284,827
Kyocera Corp. .................. 7,800 1,319,932
National Semiconductor Corp.
(b)............................. 73,600 4,176,800
Nikon Corp. .................... 10,000 369,674
Samsung Electronics Co. ........ 4,892 1,618,749
Sanmina Corp. (b)............... 5,400 461,700
Sharp Corp. .................... 62,000 1,093,500
Solectron Corp. (b)............. 13,100 548,563
STMicroelectronics NV (b)....... 19,800 1,270,913
Toshiba Corp. .................. 309,000 3,479,193
Environmental Management - .92%
Rentokil Initial PLC............ 548,710 1,247,108
Food & Beverages - 2.75%
Bass PLC........................ 193,000 2,172,782
Cadbury Schweppes PLC........... 188,050 1,236,611
Dairy Farm International
Holdings, Ltd. ................. 526,312 315,787
Healthcare/Supplies &
Services - 2.84%
ALZA Corp. (b).................. 27,900 1,649,588
C.R. Bard, Inc. ................ 45,500 2,189,688
Homebuilders - .05%
IRSA Inversiones y
Representaciones SA............. 30,413 69,965
Hotel/Gaming - .55%
International Game Technology... 28,100 744,650
Industrial Services - 1.84%
Manpower, Inc. ................. 35,600 1,139,200
WPP Group PLC................... 92,080 1,346,364
Insurance - 2.66%
Allied Zurich PLC (b)........... 118,090 1,398,338
American International Group,
Inc. ........................... 10,962 1,288,035
AXA SA.......................... 5,740 905,617
Leisure - .84%
Hasbro, Inc. ................... 38,800 584,425
Hilton Group PLC................ 156,500 550,139
</TABLE>
11
<PAGE> 12
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Global Growth Fund (continued)
--------------------------------------------------------------------
shares or value
face amount (note 1)
--------------- ------------
<S> <C> <C>
Manufacturing - 2.72%
Sidel SA........................ 17,500 $ 1,421,511
Societe BIC SA.................. 46,140 2,263,308
Nondurable Household
Goods - 3.37%
Reckitt Benckiser PLC........... 255,525 2,865,069
Wella AG, Preference............ 55,200 1,694,310
Oil & Gas - 1.11%
BP Amoco PLC ADR................ 26,014 1,471,417
Renaissance Energy, Ltd. (b).... 2,600 25,382
Printing, Publishing & Allied Products - 1.78%
Reed International PLC.......... 276,740 2,411,070
Shipping - .65%
Peninsular and Oriental Steam
Navigation Co. ................. 101,900 873,898
Specialty Retailing - .35%
Circuit City Stores............. 14,410 478,232
Telecommunications - Long Distance - 1.08%
WorldCom, Inc. (b).............. 31,955 1,465,936
Telephone - Utility - 1.99%
DDI Corp. ...................... 121 1,160,944
Tele Norte Leste Participacoes
SA (Telemar), Preference (b).... 65,593,642 1,534,891
Wireless - 2.76%
NTT DoCoMo, Inc. ............... 46 1,241,840
Telecom Italia Mobile SPA....... 116,840 1,198,781
Telesp Celular Participacoes SA,
ADR............................. 28,800 1,292,400
----------
Total Common Stocks (cost: $100,453,265) 123,768,104
----------
SHORT-TERM SECURITIES - 8.23%
Triparty Repurchase Agreement
dated June 30, 2000 with
Prudential Securities, Inc.,
effective yield of 5.75%, due
July 3, 2000, collateralized by
FHLMC, 7.50%, April 1, 2028 with
a value of $11,363,127.......... $11,140,084 11,140,084
----------
Total Short-Term Securities (cost: $11,140,084) 11,140,084
----------
TOTAL SECURITIES (COST: $111,593,349) - 99.71% 134,908,188
OTHER ASSETS AND LIABILITIES, NET - .29% 387,311
----------
NET ASSETS - 100.00% $135,295,499
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas Growth and Income Fund
---------------------------------------------------------------------
shares or value
face amount (note 1)
------------ ------------
<S> <C> <C>
COMMON STOCKS - 71.53%
Agricultural Biotechnology - .98%
Biogen, Inc. (b).................. 75,000 $ 4,837,500
Bank Holding Companies - 2.18%
Bank of America Corp. ............ 250,000 10,750,000
Beverages - 3.03%
Anheuser-Busch Companies, Inc. ... 200,000 14,937,500
</TABLE>
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
---------------------------------------------------------------------
shares or value
face amount (note 1)
------------ ------------
<S> <C> <C>
Communication Equipment - 6.25%
Cisco Systems, Inc. (b)........... 120,000 $ 7,627,500
Nokia Corp., Cl. A, Sponsored
ADR............................... 40,000 1,997,500
Nortel Networks Corp. ............ 310,000 21,157,500
Computer Hardware - 6.35%
Agilent Technologies, Inc. (b).... 9,535 703,206
EMC Corp. (b)..................... 356,560 27,432,835
Hewlett-Packard Co. .............. 25,000 3,121,875
Computer Software - 3.49%
Microsoft Corp. (b)............... 183,276 14,662,080
Oracle Corp. (b).................. 30,000 2,521,875
Per-Se Technologies, Inc. (b)..... 74 694
Consumer Services - .29%
Dun & Bradstreet Corp. ........... 50,000 1,431,250
Department Stores - 4.37%
Kohl's Corp. (b).................. 200,000 11,125,000
Wal-Mart Stores, Inc. ............ 180,000 10,372,500
Diversified Financial - 5.98%
Citigroup, Inc. .................. 240,000 14,460,000
Household International, Inc. .... 360,000 14,962,500
Electronics - 15.97%
Intel Corp. ...................... 50,000 6,684,375
JDS Uniphase Corp. (b)............ 520,000 62,335,000
Motorola, Inc. ................... 180,000 5,231,250
Waters Corp. (b).................. 35,000 4,368,438
Energy Services - .84%
Coastal Corp. .................... 40,000 2,435,000
Dynegy, Inc., Cl. A............... 25,000 1,707,812
Food - .27%
General Mills, Inc. .............. 35,000 1,338,750
Gas Utilities - 4.43%
Enron Corp. ...................... 338,000 21,801,000
Health Care/Drugs - .50%
Amgen, Inc. (b)................... 35,000 2,458,750
Insurance - 1.51%
American General Corp. ........... 35,000 2,135,000
American International Group,
Inc. ............................. 45,057 5,294,198
Manufacturing - 2.89%
Tyco International, Ltd. ......... 300,000 14,212,500
Oil - Domestic - 2.90%
Exxon Mobil Corp. ................ 182,015 14,288,178
Specialty Retailing - 4.64%
Home Depot, Inc. ................. 315,148 15,737,703
RadioShack Corp. ................. 150,000 7,106,250
Telecommunications - 4.17%
Corning, Inc. .................... 76,000 20,510,500
Wireless - .49%
AT&T Wireless Group (b)........... 87,300 2,433,487
----------
Total Common Stocks (cost: $200,334,224) 352,179,506
----------
CONVERTIBLE PREFERRED STOCKS - 2.38%
Electrical Utilities - .55%
TXU Corp. ........................ 70,000 2,721,250
Leisure - .90%
Six Flags, Inc. .................. 100,000 4,450,000
Telecommunications - Long Distance - .93%
Global TeleSystems Group, Inc. ... 60,000 1,368,750
Global TeleSystems Group, Inc.
(a)............................... 140,000 3,193,750
----------
Total Convertible Preferred Stocks (cost:
$20,765,178) 11,733,750
----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE> 13
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
---------------------------------------------------------------------
shares or value
face amount (note 1)
------------ ------------
<S> <C> <C>
UNITED STATES TREASURY NOTES & BONDS - 2.12%
5.625% due 12/31/02............... $ 2,000,000 $ 1,964,376
5.75% due 11/15/00................ $ 2,000,000 1,995,626
5.875% due 09/30/02............... $ 2,000,000 1,965,626
5.875% due 11/15/05............... $ 1,000,000 988,438
6% due 08/15/00................... $ 500,000 500,000
6% due 07/31/02................... $ 500,000 495,625
6.125% due 08/15/07............... $ 1,000,000 994,063
6.375% due 08/15/27............... $ 1,000,000 1,028,438
6.50% due 05/15/05................ $ 500,000 505,469
----------
Total U.S. Treasury Notes & Bonds (cost:
$10,452,626) 10,437,661
----------
SHORT-TERM SECURITIES - 23.62%
Triparty Repurchase Agreement dated
June 30, 2000 with Prudential
Securities, Inc., effective yield
of 5.75%, due July 3, 2000,
collateralized by FHLMC, 7.50%,
April 1, 2028 with a value of
$17,722,589 and by FHLMC, 6%, July
1, 2029 with a value of
$100,876,282...................... $116,273,138 116,273,138
----------
Total Short-Term Securities (cost: $116,273,138) 116,273,138
----------
TOTAL SECURITIES (COST: $347,825,166) - 99.65% 490,624,055
OTHER ASSETS AND LIABILITIES, NET - .35% 1,731,013
----------
NET ASSETS - 100.00% $492,355,068
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Growth Fund
--------------------------------------------------------------------
shares or value
face amount (note 1)
----------- ------------
<S> <C> <C>
COMMON STOCKS - 80.81%
Broadcasting - 3.10%
Infinity Broadcasting Corp. (b)... 65,000 $ 2,368,438
Univision Communications, Inc.
(b)............................... 29,000 3,001,500
Broker-Dealers - .58%
Charles Schwab Corp. ............. 30,000 1,008,750
Communication Equipment - 11.54%
CIENA Corp. (b)................... 12,000 2,000,250
Cisco Systems, Inc. (b)........... 70,000 4,449,375
Lucent Technologies, Inc. ........ 20,000 1,185,000
Nokia Corp., Cl. A, ADR........... 91,200 4,554,300
Nortel Networks Corp. ............ 114,400 7,807,800
Computer Hardware - 5.73%
Dell Computer Corp. (b)........... 28,000 1,380,750
EMC Corp. (b)..................... 86,000 6,616,625
Gateway, Inc. (b)................. 15,000 851,250
Lexmark International Group, Inc.,
Cl. A (b)......................... 16,100 1,082,725
Computer Services - 1.82%
Applied Micro Circuits Corp.
(b)............................... 32,000 3,160,000
Computer Software - 6.14%
BEA Systems, Inc. (b)............. 6,000 296,625
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Growth Fund (continued)
---------------------------------------------------------------------
shares or value
face amount (note 1)
----------- ------------
<S> <C> <C>
Citrix Systems, Inc. (b).......... 30,600 $ 579,488
Microsoft Corp. (b)............... 40,000 3,200,000
Oracle Corp. (b).................. 29,900 2,513,469
VeriSign, Inc. (b)................ 5,000 882,500
Veritas Software Corp. (b)........ 28,000 3,164,437
Department Stores - 3.54%
Kohl's Corp. (b).................. 74,000 4,116,250
Wal-Mart Stores, Inc. ............ 35,000 2,016,875
Diversified Financial - 1.74%
Citigroup, Inc. .................. 50,000 3,012,500
Drugs/Bio-Pharmaceuticals - 1.54%
Immunex Corp. (b)................. 54,000 2,669,625
Electric Utilities - 1.40%
AES Corp. (The) (b)............... 53,400 2,436,375
Electrical Equipment - 5.26%
E-Tek Dynamics, Inc. (b).......... 30,000 7,914,375
Integrated Device Technology, Inc.
(b)............................... 20,000 1,197,500
Electronics - 22.12%
Broadcom Corp. (b)................ 4,000 875,750
Intel Corp. ...................... 23,100 3,088,181
JDS Uniphase Corp. (b)............ 137,104 16,435,342
LSI Logic Corp. (b)............... 20,000 1,082,500
SDL, Inc. (b)..................... 28,000 7,985,250
Texas Instruments, Inc. .......... 30,000 2,060,625
Vitesse Semiconductor Corp. (b)... 45,000 3,310,313
Waters Corp. (b).................. 28,000 3,494,747
Entertainment - .01%
Royal Caribbean Cruises, Ltd. .... 1,200 22,200
Gas Utilities - 1.60%
Enron Corp. ...................... 43,000 2,773,500
Manufacturing - 3.14%
Tyco International, Ltd. ......... 115,000 5,448,125
Specialty Retailing - 7.37%
Best Buy Co., Inc. (b)............ 46,000 2,909,500
Home Depot, Inc. ................. 75,000 3,745,313
RadioShack Corp. ................. 65,000 3,079,375
Tiffany & Co. .................... 45,000 3,037,500
Telecommunications - 3.74%
Corning, Inc. .................... 24,000 6,477,000
Wireless - .44%
AT&T Wireless Group (b)........... 27,500 766,563
----------
Total Common Stocks (cost: $98,276,865) 140,058,566
----------
SHORT-TERM SECURITIES - 19.07%
Triparty Repurchase Agreement dated
June 30, 2000 with Prudential
Securities, Inc., effective yield
of 5.75%, due July 3, 2000,
collateralized by FHLMC, 7.50%,
November 1, 2027 with a value of
$33,713,109....................... $33,051,927 33,051,927
----------
Total Short-Term Securities (cost: $33,051,927) 33,051,927
----------
TOTAL SECURITIES (COST: $131,328,792) - 99.88% 173,110,493
OTHER ASSETS AND LIABILITIES, NET - .12% 201,202
----------
NET ASSETS - 100.00% $173,311,695
----------
----------
</TABLE>
13
<PAGE> 14
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund
--------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
BONDS - 97.65%
A B C Unified School District,
Capital Appreciation, FGIC
Insured, Series B, 0% due
08/01/23.......................... $2,000,000 $ 516,620
Abag Financing Authority For
Nonprofit Corps., Schools of
Sacred Heart, Series A,
6.15% due 06/01/15................ 1,000,000 1,012,240
6.45% due 06/01/30................ 1,100,000 1,108,844
Anaheim Public Financing Authority,
Lease Revenue Capital
Appreciation, Series C, FSA
Insured, 0% due 09/01/32.......... 5,000,000 735,650
Anaheim Public Financing Authority,
Lease Revenue Public Improvements
Project, Series A, FSA Insured, 5%
due 03/01/37...................... 6,000,000 5,309,820
Brea, Public Finance Authority
Revenue Tax Allocation,
Redevelopment Project AB,
Unrefunded, Series A, MBIA
Insured, 6.75% due 08/01/22....... 660,000 687,258
Burbank, Glendale, Pasadena Airport
Authority, Airport Revenue
Refunding, AMBAC Insured, 6.40%
due 06/01/10...................... 2,000,000 2,063,840
Central Coast Water Authority,
Revenue Refunding, State Water
Project, Regional Facilities,
Series A, AMBAC Insured, 5% due
10/01/22.......................... 3,250,000 3,003,390
Contra Costa Water District, Water
Treatment Revenue Refunding,
Series G, MBIA Insured, 5.90% due
10/01/08.......................... 3,600,000 3,830,472
Elk Grove Unified School District,
Special Tax Refunding, Community
Facilities District 1, AMBAC
Insured, 6.50% due 12/01/24....... 1,500,000 1,676,250
Foothill/Eastern Corrider Agency,
Toll Road Revenue, 5.75%
01/15/40.......................... 5,200,000 4,877,860
Kern High School District
Refunding, MBIA Insured, Series
1990-C, 6.25% due 08/01/12........ 1,200,000 1,338,240
Long Beach Harbor Revenue, AMT,
MBIA Insured, 5.25% due
05/15/25.......................... 2,000,000 1,851,000
Los Angeles, COP, AMBAC Insured,
Sonnenblick Del Rio, 6% due
11/01/19.......................... 2,000,000 2,083,340
Los Angeles, Harbor Development
Revenue, 7.60% due 10/01/18....... 140,000 171,752
Los Angeles, Wastewater System
Revenue Refunding,
Series A, MBIA Insured, 5.875% due
06/01/24.......................... 2,250,000 2,270,543
Series B, AMBAC Insured, 6.25% due
06/01/12.......................... 2,500,000 2,638,200
Los Angeles County, Transportation
Commission, Sales Tax Revenue,
Proposition C,
Second Series A, MBIA Insured,
6.25% due 07/01/13................ 8,980,000 9,489,974
Series B, AMBAC Insured, 6.50% due
07/01/13.......................... 1,750,000 1,817,760
MSR Public Power Agency, San Juan
Project Revenue, Series E, MBIA
Insured, 6.75% due 07/01/11....... 3,000,000 3,126,750
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
--------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Manhattan Beach Unified School
District, Series A, FGIC Insured,
0% due 09/01/16................... $2,690,000 $ 1,092,678
Marin Municipal Water District
Water Revenue, MBIA Insured, 5.65%
due 07/01/23...................... 2,000,000 1,991,320
Maritime Infrastructure Authority,
Airport Revenue, San Diego
University, Port District Airport,
AMT, AMBAC Insured, 5% due
11/01/20.......................... 9,500,000 8,588,095
Metropolitan Water District,
Southern California Waterworks
Revenue, 5.50% due 07/01/19....... 2,500,000 2,476,750
Modesto Irrigation District COP,
Refunding and Capital Improvement,
Series B, 5.30% due 07/01/22...... 2,985,000 2,772,826
Montebello Unified School District,
Capital Appreciation, FGIC
Insured, 0% due 08/01/17.......... 2,150,000 818,892
Mountain View, Capital Improvements
Financing Authority Revenue, City
Hall Community Theatre, MBIA
Insured, 6.25% due 08/01/12....... 1,500,000 1,554,405
Natomas Unified School District,
1999 Refunding, MBIA Insured,
5.95% due 09/01/21................ 1,000,000 1,051,920
New Haven Unified School District
Refunding, MBIA Insured,
5.75% due 08/01/11................ 925,000 944,046
Northern California Power Agency
Public Power Revenue Refunding,
Hydroelectric Project 1, Series A,
AMBAC Insured, 7.50% due
07/01/23.......................... 50,000 60,707
MBIA Insured, 6.25% due
07/01/12.......................... 1,500,000 1,567,755
Oakland Building Authority Lease
Revenue, Elihu M. Harris, Series
A, AMBAC Insured, 5% due
04/01/23.......................... 2,330,000 2,123,306
Orange County, Sanitation
Districts, COP Numbers 1, 2, and
3, Series B, FGIC Insured, 6% due
08/01/16.......................... 2,000,000 2,077,360
Pacifica, COP, Street Improvement
Project, AMBAC Insured, 5.875% due
11/01/29.......................... 1,105,000 1,111,984
Palm Springs Financing Authority,
Airport Passenger Facility Charge
Revenue, AMT, FSA Insured, 5.125%
due 01/01/18...................... 1,000,000 935,790
Palo Alto Unified School District,
Series B, 5.375% due 08/01/18..... 1,250,000 1,232,175
Pasadena, Electric Revenue, MBIA
Insured, 4.75% due 08/01/24....... 1,000,000 868,090
Pomona Unified School District,
Series C, FGIC Insured, 6% due
08/01/25.......................... 500,000 515,615
Puerto Rico Commonwealth, Highway &
Transportation Revenue,
Infrastructure, 5% due 07/01/28... 2,000,000 1,756,760
Series A, 5% due 07/01/38......... 5,500,000 4,723,730
Puerto Rico Commonwealth Refunding,
5% due 07/01/27................... 1,000,000 882,000
Puerto Rico Electric Power
Authority, Power Revenue,
Series EE, 4.75% due 07/01/24..... 1,000,000 848,820
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE> 15
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
--------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Series Z, 5.25% due 07/01/21...... $2,000,000 $ 1,874,320
Puerto Rico Ports Authority,
American Airlines, Series A, AMT,
6.30% due 06/01/23................ 1,800,000 1,763,568
Sacramento Municipal Utility
District, Electric Revenue
Refunding, Series Z, FGIC Insured,
6.45% due 07/01/10................ 2,500,000 2,598,350
San Bernardino County, COP, Medical
Center Financing Project, 5% due
08/01/28.......................... 1,500,000 1,328,895
San Diego, Public Safety
Communication Project, 6.50% due
07/15/09.......................... 1,525,000 1,725,278
San Diego, Water Utility Fund Net
System Revenue, COP, 4.75% due
08/01/28.......................... 1,000,000 857,720
San Francisco City and County,
FGIC Insured, 5.50% due
06/15/13.......................... 1,145,000 1,166,320
Series E, 6.50% due 06/15/11...... 2,220,000 2,268,085
San Francisco City and County
Airport Commission, International
Airport Revenue,
Issue 1, AMBAC Insured, 6.50% due
05/01/13.......................... 1,200,000 1,260,252
Issue 1, Prerefunded, AMBAC
Insured, 6.30% due 05/01/11....... 1,200,000 1,265,580
Issue 1, Unrefunded, AMBAC
Insured, 6.30% due 05/01/11....... 1,800,000 1,884,960
Issue 17, Second Series, FSA
Insured, 4.75% due 05/01/29....... 2,500,000 2,137,350
Issue 23B, Second Series, FGIC
Insured, 5% due 05/01/24.......... 3,000,000 2,724,210
San Francisco City and County Sewer
Revenue Refunding, AMBAC Insured,
6% due 10/01/11................... 2,280,000 2,384,036
San Joaquin Hills Transportation
Corridor Agency, Toll Road
Revenue,
0%/7.40% due 01/01/07 (d)......... 1,000,000 1,030,070
0%/7.50% due 01/01/09 (d)......... 1,000,000 1,062,680
San Jose Redevelopment Agency Tax
Allocation, Merged Area
Redevelopment Project Refunding,
MBIA Insured, 5% due 08/01/20..... 2,500,000 2,306,200
San Mateo County, Joint Powers
Authority, Lease Revenue Capital
Projects, Series A, 5.125% due
07/15/32.......................... 2,145,000 1,954,052
Sanger Unified School District,
MBIA Insured, 5.60% due
08/01/23.......................... 2,530,000 2,516,895
Santa Barbara, Revenue COP,
Retirement Services, 5.75% due
08/01/20.......................... 2,000,000 2,002,440
Santa Clara Electric Revenue, 1991,
Series A, MBIA Insured, 6.25% due
07/01/19.......................... 3,750,000 3,898,913
Santa Margarita, Dana Point
Authority Revenue Refunding,
Improvement District 3, 3A, 4 and
4A, Series B, MBIA Insured,
7.25% due 08/01/07................ 500,000 580,210
7.25% due 08/01/13................ 2,000,000 2,431,520
Saugus Unified School District,
Series A, MBIA Insured, 5.65% due
09/01/11.......................... 2,035,000 2,107,751
</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 $ 250,240
0% due 08/01/14................... 250,000 117,058
Southern California Public Power
Authority Power Project Revenue
Refunding, Hydroelectric Hoover
Uprating Project, Series A, 6.625%
due 10/01/05...................... 600,000 627,450
Southern California Rapid Transit
District, COP, Workers
Compensation Fund, MBIA Insured,
6% due 07/01/10................... 1,000,000 1,033,340
State, Refunding,
5% due 10/01/23................... 2,000,000 1,813,520
Series BH, AMT, 5.60% due
12/01/32.......................... 1,000,000 950,050
State Department of Water Resources
Central Valley Project Revenue,
Series J-2, 6.125% due 12/01/13... 2,225,000 2,262,825
Series J-3, Prerefunded, 5.50% due
12/01/23.......................... 810,000 819,607
Series J-3, Unrefunded, 5.50% due
12/01/23.......................... 2,190,000 2,139,170
Series O, 5% due 12/01/15......... 1,750,000 1,687,945
State Educational Facilities
Authority Revenue Refunding,
Loyola Marymount University, MBIA
Insured, 5% due 10/01/22.......... 700,000 640,234
Pepperdine University, MBIA
Insured, 6.10% due 03/15/14....... 2,595,000 2,737,128
Santa Clara University, MBIA
Insured, 5.75% due 09/01/18....... 3,255,000 3,287,973
University of Southern California,
Series C, 5.125% due 10/01/28..... 1,000,000 915,720
State Health Facilities Financing
Authority Revenue Refunding,
Scripps Health, Series C, MBIA
Insured, 5% due 10/01/22.......... 500,000 451,470
Stanford Health Care, Series A,
FSA Insured, 5% due 11/15/28...... 1,000,000 885,440
State Housing Finance Agency
Revenue Home Mortgage,
Multi-Family Program,
Series B, AMT, AMBAC Insured,
6.05% due 08/01/16................ 2,000,000 2,007,480
Series B, AMT, AMBAC Insured,
5.25% due 02/01/28................ 2,000,000 1,776,740
Series F, AMT, MBIA Insured, 6.10%
due 08/01/15...................... 1,000,000 1,006,790
Series H, AMT, 6.15% due
08/01/16.......................... 2,020,000 2,031,352
Series I, AMT, MBIA Insured, 5.65%
due 08/01/17...................... 1,400,000 1,377,642
Series K, MBIA Insured, 6.15% due
08/01/16.......................... 3,000,000 3,082,020
Series L, AMT, MBIA Insured, 5.55%
due 08/01/05...................... 300,000 307,179
Series Q, MBIA Insured, 5.85% due
08/01/16.......................... 1,000,000 1,014,150
State Pollution Control Financing
Authority, Pollution Control
Revenue, MBIA Insured, Pacific Gas
& Electric Co., Series B, AMT,
5.85% due 12/01/23................ 1,800,000 1,801,800
</TABLE>
15
<PAGE> 16
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
--------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
State Pollution Control
Financing Authority, Resource
Recovery Revenue, Waste
Management, Inc., Series A, AMT,
7.15% due 02/01/11................ $1,500,000 $ 1,513,920
State Public Works Board, Lease
Revenue, AMBAC Insured, Various
University of California Projects,
Series C, 5.125% due 09/01/22..... 1,475,000 1,374,154
State Rural Home Mortgage Finance
Authority, Single Family Revenue
Refunding, Series C, AMT, 7.50%
due 08/01/27...................... 825,000 900,323
Statewide Communities Development
Authority, COP, 6% due 08/01/28... 2,000,000 1,888,720
Lease Revenue, United Airlines,
Series A, AMT, 5.70% due
10/01/33.......................... 4,000,000 3,336,480
Multi-Family Revenue, Archstone/
LeClub-G, 5.30% due 06/01/29...... 2,000,000 1,940,820
Residential-B, 5.20% due
12/01/29.......................... 2,500,000 2,406,400
Stockton Health Facilities Revenue,
Dameron Hospital, Series A, 5.70%
due 12/01/14...................... 200,000 178,702
Truckee, Donner Public Utility
District, COP, Water System
Improvement Project, MBIA Insured,
6.75% due 11/15/21................ 1,000,000 1,053,100
Turlock Irrigation District Revenue
Refunding, Series A, MBIA Insured,
6% due 01/01/10................... 500,000 547,755
Upland, COP, San Antonio Community
Hospital, 5% due 01/01/18......... 3,195,000 2,749,234
Vallejo Revenue Water Improvement
Project, Series B, FGIC Insured,
6.50% due 11/01/14................ 4,000,000 4,339,520
Westside Unified School District
Refunding, Series C, AMBAC
Insured, 6% due 08/01/14.......... 300,000 323,023
------------
Total Bonds (cost: $191,120,377) 192,310,956
----------
VARIABLE RATE DEMAND NOTES* - .81%
Orange County, Water District, COP,
Project B, 4.90% due 08/15/15..... 400,000 400,000
State Health Facilities Financing
Authority Revenue Refunding,
Catholic Healthcare, Series A,
MBIA Insured, 4.25% due
07/01/09.......................... 700,000 700,000
Statewide Communities Development
Authority, COP,
Citrus Valley Partners, Inc.,
Citrus Valley Medical Center,
Inc., and Foothill Hospital, MBIA
Insured, 4% due 04/01/28.......... 400,000 400,000
John Muir/Mt. Diablo Health, AMBAC
Insured, 4% due 08/15/27.......... 100,000 100,000
----------
Total Variable Rate Demand Notes (cost:
$1,600,000) 1,600,000
----------
TOTAL SECURITIES (COST: $192,720,377) - 98.46% 193,910,956
OTHER ASSETS AND LIABILITIES, NET - 1.54% 3,035,613
----------
NET ASSETS - 100.00% $196,946,569
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund
--------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
BONDS - 95.08%
A B C California Unified School
District, Capital Appreciation,
Series B, FGIC Insured, 0% due
08/01/24.......................... $1,715,000 $ 416,796
Alabama State Docks Department,
Docks Facilities Revenue, AMT,
MBIA Insured, 6.10% due
10/01/13.......................... 1,000,000 1,041,700
Anchorage, Alaska, Electric Utility
Revenue Refunding, Senior Lien,
MBIA Insured, 8% due 12/01/10..... 985,000 1,209,117
Birmingham, Michigan, City School
District, FSA Insured, 4.75% due
11/01/24.......................... 2,000,000 1,700,140
Chicago, Illinois, Metropolitan
Water Reclamation District,
Greater Chicago Capital
Improvement, 7.25% due 12/01/12... 1,500,000 1,783,245
Chicago, Illinois, Park District
Aquarium & Museum, Series B, 6.50%
due 11/15/13...................... 1,500,000 1,622,595
Chicago, Illinois, Public Building
Commission Mortgage Revenue, Board
of Education, Series A, MBIA
Insured, 7.125% due 01/01/15...... 125,000 128,035
Cleveland, Ohio, Waterworks Revenue
First Mortgage Refunding, Series
F-92B, AMBAC Insured, 6.25% due
01/01/16.......................... 1,000,000 1,037,630
Colorado, Housing Finance
Authority, Single Family Program,
Senior Series A-1, AMT, 7.40% due
11/01/27.......................... 740,000 809,368
Colorado, Public Highway Authority,
E-470, Capital Appreciation Senior
Series B, MBIA Insured, 0% due
09/01/21.......................... 2,000,000 561,680
Colorado Springs, Colorado,
Utilities Revenue, Unrefunded
Balance, Series A, 6.50% due
11/15/15.......................... 2,000,000 2,084,780
Cook County, Illinois, MBIA
Insured, 7.25% due 11/01/07....... 620,000 704,611
Dallas, Fort Worth, Texas,
International Airport Facility
Improvement Revenue, American
Airlines, AMT, 6.375% due
05/01/35.......................... 1,000,000 928,490
Delaware Valley, Pennsylvania,
Regional Financing Authority,
Local Government Revenue, Series
A, AMBAC Insured, 5.50% due
08/01/28.......................... 1,000,000 965,850
Foothill/Eastern Corridor Agency,
California, Toll Road Refunding,
5.75% due 01/15/40................ 1,000,000 938,050
Harris County, Texas, Toll Road
Revenue Refunding, Senior Lien,
FGIC Insured, 5.375% due
08/15/20.......................... 1,000,000 954,400
Illinois Health Facilities
Authority Revenue Refunding,
Northwestern Medical Facilities
Foundation, MBIA Insured, 5.125%
due 11/15/28...................... 1,000,000 865,660
Indianapolis, Indiana, Airport
Authority Revenue, Special
Facilities, Federal Express Corp.,
AMT, 7.10% due 01/15/17........... 500,000 517,795
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE> 17
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
--------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
Jones County, Mississippi Hospital
Revenue, South Central Regional
Medical Center, 5.50% due
12/01/17.......................... $1,000,000 $ 836,600
Kansas City, Kansas, Utility System
Revenue, Unrefunded Balance, FGIC
Insured, 6.375% due 09/01/23...... 1,010,000 1,051,067
Kern, California, High School
District, Series 1990-C Election,
MBIA Insured, 6.25% due
08/01/10.......................... 545,000 612,209
Lakota, Ohio, Local School
District, AMBAC Insured, 7% due
12/01/09.......................... 1,740,000 1,995,971
Louisiana Public Facilities
Authority Hospital Revenue, Touro
Infirmary Project, Series A,
5.50% due 08/15/19................ 1,000,000 851,510
5.625% due 08/15/29............... 1,000,000 828,890
Maine State Housing Authority
Mortgage Purchase, Series A-1,
AMT, AMBAC Insured, 6.40% due
11/15/14.......................... 1,400,000 1,410,178
Maricopa County, Arizona, Unified
School District 69, Paradise
Valley Refunding, MBIA Insured,
6.35% due 07/01/10................ 600,000 661,956
Massachusetts State Health and
Educational Facilities Authority
Revenue, Northeastern University,
Series E, MBIA Insured, 6.55% due
10/01/22.......................... 500,000 524,995
Massachusetts State Industrial
Financing Agency Revenue,
Wentworth Institute of Technology,
5.65% due 10/01/18................ 500,000 466,835
Metropolitan Pier & Exposition
Authority, Illinois, Dedicated
State Tax Revenue, McCormick Place
Expansion Project,
Capital Appreciation, FGIC
Insured, 0% due 06/15/29.......... 4,000,000 688,360
Prerefunded, Series A, 7.25% due
06/15/05.......................... 35,000 38,549
Prerefunded, Series A, 7.25% due
06/15/05.......................... 105,000 116,083
Unrefunded, Series A, 7.25% due
06/15/05.......................... 110,000 120,798
Metropolitan Transportation
Authority, New York,
Transportation Facilities Revenue,
Series 8, 5.375% due 07/01/21..... 1,000,000 932,700
Mississippi Higher Education
Assistance Corp., Student Loan
Revenue, Series C, AMT, 6.05% due
09/01/07.......................... 625,000 629,181
Nevada Housing Division, Single
Family Mortgage, Series C, AMT,
6.60% due 04/01/14................ 855,000 861,584
New York City, New York, General
Obligation,
Series F, 6% due 08/01/11......... 500,000 523,085
Series I, 5.875% due 03/15/14..... 500,000 510,660
Series L, 5.75% due 08/01/12...... 500,000 512,770
New York City, New York, Industrial
Development Agency, Special
Facilities Revenue, United
Airlines, Inc., AMT, 5.65% due
10/01/32.......................... 1,000,000 840,160
</TABLE>
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
--------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
New York City, New York, Municipal
Water Finance Authority, Water &
Sewer Systems Revenue, Series B,
6% due 06/15/33................... $1,000,000 $ 1,015,210
New York State Dormitory Authority
Revenue, Pooled Capital Program,
FGIC Insured, 7.80% due
12/01/05.......................... 20,000 20,445
New York State Highway Authority,
Service Contract Revenue, Local
Highway and Bridge, 5% due
04/01/17.......................... 1,000,000 908,920
New York State Urban Development
Corp. Revenue, Correctional
Facilities, Series A, 5.50% due
01/01/16.......................... 1,000,000 972,580
Northern California Power Agency,
Public Power Revenue Refunding,
Hydroelectric Project 1, Series A,
MBIA Insured, 6.25% due
07/01/12.......................... 750,000 783,877
Philadelphia, Authority for
Industrial Development Revenue,
Franklin Institute Project, 5.20%
due 06/15/26...................... 1,000,000 813,930
Pinal County, Arizona, Unified
School District 43, Apache JCT,
Series A, FGIC Insured, 6.80% due
07/01/09.......................... 425,000 479,192
Puerto Rico Electric Power
Authority, Power Revenue
Refunding, Series Z, 5.25% due
07/01/21.......................... 1,000,000 937,160
Sacramento, California, Municipal
Utility District Electric Revenue
Refunding, Series Z, FGIC Insured,
6.45% due 07/01/10................ 600,000 623,604
Salt Lake City, Utah, Hospital
Revenue, IHC Hospitals, Inc., MBIA
Insured, 6.25% due 02/15/23....... 1,500,000 1,519,935
Superior, Wisconsin, Limited
Obligation Revenue Refunding,
Midwest Energy Resources, Series
E, FGIC Insured, 6.90% due
08/01/21.......................... 500,000 570,370
Tallassee, Alabama, Industrial
Development Board Revenue
Refunding, Dow United Technologies
Corp., Series B, 6.10% due
08/01/14.......................... 1,000,000 1,071,870
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 1,053,590
Tulsa, Oklahoma, Airport
Transportation Revenue, American
Airlines, Inc., AMT, 7.375% due
12/01/20.......................... 2,000,000 2,033,000
Utah State Board of Regents Student
Loan Revenue, Series N, AMT, AMBAC
Insured, 5.90% due 11/01/07....... 1,000,000 1,037,840
Vermont Educational & Health
Buildings Financing Agency,
Norwich University Project, 5.50%
due 07/01/21...................... 1,000,000 875,950
Washington State Public Power
Supply System Refunding Revenue,
Nuclear Project 2, Series A, 7.25%
due 07/01/06...................... 500,000 556,625
----------
Total Bonds (cost: $48,555,984) 48,558,181
----------
</TABLE>
17
<PAGE> 18
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
--------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
~
VARIABLE RATE DEMAND NOTES* - 3.33%
Farmington, New Mexico, Pollution
Control Revenue, Arizona Public
Service Co., Series B, 4.45% due
09/01/24.......................... $ 700,000 $ 700,000
North Central, Texas, Health
Facilities Development Corp.
Revenue, Presbyterian Medical
Center, Series D, MBIA Insured,
4.55% due 12/01/15................ 400,000 400,000
Reno, Nevada, Hospital Revenue, St.
Mary's Regional Medical Center,
Series B, MBIA insured, 4.55% due
05/15/23.......................... 400,000 400,000
Wisconsin State Health Facilities
Authority Revenue, Franciscan
Health Care, Series A-2, 4.60% due
01/01/16.......................... 200,000 200,000
----------
Total Variable Rate Demand Notes (cost
$1,700,000) 1,700,000
----------
TOTAL SECURITIES (COST: $50,255,984) - 98.41% 50,258,181
OTHER ASSETS AND LIABILITIES, NET - 1.59% 812,443
----------
NET ASSETS - 100.00% $ 51,070,624
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
---------- ---------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS - 24.44%
Commercial - 3.08%
Ameriquest Finance Trust,
Collateralized Mtg. Obligations,
Series 2000-1, 8.50% due 05/15/30
(f)................................ $ 200,000 $ 193,750
Asset Securitization Corp.,
Commercial Mortgage Pass-Through
Certificates, Series 1997-D5, Cl.
B2, 6.93% due 02/14/41............. 400,000 228,000
First Chicago/Lennar Trust,
Commercial Collateral Strip
Interest,
Series 1997-CHL1,
Cl. D, 8.08% due 05/29/08
(a)(c)(f).......................... 100,000 62,188
Cl. E, 8.08% due 02/28/11
(a)(c)(f).......................... 150,000 87,422
GMAC Commercial Mortgage
Securities, Inc.,
Series 1997-C1,
Cl. G, 7.414% due 09/30/06......... 120,000 88,050
Cl. X, 1.641% due 07/15/27......... 975,000 74,039
Series 1997-C2, Cl. F, 6.75% due
04/16/29........................... 100,000 57,156
Morgan Stanley Capital I, Inc.,
Commercial Sub. Bonds,
Series 1996-C1, Cl. F, 7.41% due
05/15/06 (a)(c).................... 97,137 72,185
Series 1997-HF1, Cl. F, 6.86% due
02/15/10 (a)(c)(f)................. 50,000 40,109
Series 1997-RR, Cl. D, 7.75% due
04/30/39 (a)(c)(f)................. 200,000 148,469
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Series 1997-RR, Cl. E, 7.72% due
04/30/39 (a)(c)(f)................. $ 75,000 $ 49,898
Series 1997-RR, Cl. F, 7.75% due
04/30/39 (a)(c)(f)................. 175,000 97,508
Series 1997-XL1, Cl. G, 7.70% due
10/03/30 (a)(c)(f)................. 60,000 50,063
NC Finance Trust, Series 1999-I,
Cl. ECFD, 8.75% due 12/25/28....... 138,569 129,562
Resolution Trust Corp., Commercial
Mortgage Pass-Through Certificates,
Series 1994-C2, Cl. E, 8% due
04/25/25 (c)....................... 627,469 619,532
Salomon Brothers Mortgage
Securities VII, Series 1996-C1, Cl.
F, 8.89% due 01/20/28.............. 250,000 186,875
Salomon Brothers, Inc., Commercial
Mortgage Pass-Through Certificates,
Series 1998-1A, 5% due 12/25/00
(f)................................ 35,495 33,986
Structured Asset Securities Corp.,
Commercial Mtg. Pass-Through
Certificates,
Series 1995-C4, Cl. E, 8.80% due
06/25/26 (a)(f).................... 27,688 26,944
Series 1997-LL1, Cl. F, 7.30% due
04/12/12 (a)....................... 50,000 45,203
Government Agency - 20.02%
Federal Home Loan Mortgage Corp.,
Interest-Only Stripped
Mortgage-Backed Security, Series
194, 6.50% due
04/01/28 (g)....................... 10,154,680 3,236,175
Series 151, Cl. F, 9% due 05/15/21
(g)................................ 236,018 242,939
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........................... 1,000,000 970,380
Federal National Mortgage
Association, Interest-Only Stripped
Mortgage-Backed Security, Series
294, Class 2, 7% due 02/01/28
(g)................................ 1,500,542 476,716
Federal National Mortgage
Association,
6.50% due 05/01/29................. 375,774 354,674
7% due 07/01/26.................... 406,292 392,358
7% due 01/01/28.................... 979,811 945,906
7.50% due 07/01/29................. 800,000 788,624
8% due 07/25/27.................... 800,000 803,376
Government National Mortgage
Association,
7% due 03/15/28.................... 2,540,310 2,470,553
7% due 03/15/28.................... 794,836 773,010
7% due 03/15/28.................... 534,449 519,773
7% due 07/15/28.................... 817,722 795,267
Government National Mortgage
Association, Series 1999-27, Gtd.
Multiclass Mtg. Participation
Certificates, Cl. PQ, 7, 7.50% due
08/16/28........................... 2,144,000 2,141,320
Multi-Family - 1.34%
Criimi Mae, Inc., Trust I, Series
1996-C1, Cl. A2, 7.56% due 06/30/33
(a)................................ 100,000 94,742
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE> 19
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Mortgage Capital Funding, Inc.,
Multi-family Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl.
G, 7.15% due 06/15/06 (a).......... $ 1,100,000 $ 907,082
---------
Total Mortgage-Backed Obligations (cost:
$18,951,762) 18,203,834
---------
U.S. GOVERNMENT OBLIGATIONS - 7.97%
U.S. Treasury Bonds:
6.50% due 11/15/26................. 542,000 565,374
8.875% due 02/15/19................ 325,000 417,422
U.S. Treasury Notes:
5.50% due 01/31/03 (k)(l).......... 2,115,000 2,070,718
6% due 08/15/09 (o)................ 607,000 602,068
7% due 07/15/06 (o)................ 778,000 805,960
U.S. Treasury Strips:
6.85% due 02/15/19 (m)(n).......... 2,500,000 792,048
Principal, 6.57% due 05/15/05
(m)(n)............................. 924,000 680,017
---------
Total U.S. Government Obligations (cost:
$6,045,284) 5,933,607
---------
FOREIGN GOVERNMENT
OBLIGATIONS - 24.23%
Argentina - 2.73%
Argentina (Republic of),
Bonos de Consolidacion de Deudas,
Series 1,
2.81% Bonds due 04/01/07 (ARP)
(c)................................ 1,263,447 814,124
6.62% Bonds due 04/01/01 (c)....... 4,176 1,037
City of Buenos Aires, Series 3,
10.50% Notes due 05/28/04 (ARP).... 40,000 33,119
Global Bonds,
11.75% due 06/15/15................ 60,000 54,300
12% due 02/01/20................... 195,000 180,765
12.125% due 02/25/19............... 42,000 39,375
Series BGL5, 11.375% Global Unsec.
Unsub. Notes due 01/30/17.......... 266,000 238,070
Unsec. Unsub. Medium-Term Notes,
8.75% due 07/10/02 (ARP)........... 110,000 98,396
Unsub. Unsec. Notes, 11.75% due
04/07/09........................... 616,000 572,833
Belgium - .97%
Belgium (Kingdom),
Series 35, 5.75% Bonds due 09/28/10
(EUR).............................. 780,000 723,744
Brazil - 3.49%
Brazil (Federal Republic of),
Global Bonds,
12.25% due 03/06/30................ 276,000 253,230
12.75% due 01/15/20................ 225,000 214,335
Par Bonds, 6% due 04/15/24 (c)..... 270,000 176,171
Unsub. Bonds, 14.50% due
10/15/09........................... 645,000 689,092
15 Year New Money Bonds, Bearer,
7.44% due 04/15/09 (c)............. 321,000 268,436
18 Year Debt Conversion Bonds,
Bearer, Series L, 7.44% due
04/15/12 (c)....................... 542,000 400,016
18 Year Debt Conversion Bonds,
Series D, 7.44% due 04/15/12 (c)... 300,000 221,411
20 Year Debt Conversion Bonds, 8%
due 04/15/14 (c)................... 295,538 217,600
30 Year Discount Bonds, 7.37% due
04/15/24 (c)....................... 200,000 158,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Bulgaria - .10%
Bulgaria (Republic of),
Front-Loaded Interest Reduction
Bearer Bonds, Tranche A,
2.75% due 07/28/12 (e)............. $ 105,000 $ 77,306
Canada - .07%
Canada (Government of) Bonds,
Series J24, 10.25% due 02/01/04
(CAD).............................. 70,000 53,492
Colombia - .08%
Colombia (Republic of), 7.625%
Unsec. Unsub. Bonds due 02/15/07... 85,000 60,988
Finland - .25%
Finland (Republic of), 9.50% Bonds
due 03/15/04 (EUR)................. 168,187 183,587
France - 2.58%
France (Government of),
O.A.T., 5.50% Bonds due 04/25/10
(EUR).............................. 1,515,000 1,464,317
Treasury Note, 4.75% due 03/12/02
(EUR).............................. 480,000 458,426
Germany - 2.26%
Germany (Republic of),
5.375% Bonds due 01/01/10 (EUR).... 800,000 774,157
7.375% Bonds due 12/02/02 (EUR).... 900,000 906,180
Great Britain - .64%
United Kingdom Treasuries, 8% due
06/10/03 (GBP)..................... 300,000 477,857
Greece - .23%
Hellenic (Republic of), 8.60% Bonds
due 03/26/08 (GRD)................. 53,300,000 174,078
Hungary - .28%
Hungary (Government of) Bonds,
Series 01/H, 13.50% due
06/12/01 (HUF)..................... 55,380,000 209,259
Indonesia - .07%
Indonesia (Republic of), 7.75%
Unsec. Bonds due 08/01/06.......... 70,000 54,950
Ivory Coast - .03%
Ivory Coast (Government of) Past
Due Interest, Series F, 1.90% Bonds
due 03/29/18 (b)(e) (FRF).......... 952,875 21,530
Japan - 2.17%
Japan (Government of), Ten Year
Issue, Series 141, 3.10% Bonds due
03/20/06 (JPY)..................... 155,100,000 1,613,971
Mexico - 1.91%
United Mexican States
Collateralized Fixed Rate Par
Bonds, Series W-A, 6.25% Sec. Bonds
due 12/31/19....................... 100,000 82,750
United Mexican States Notes, 9.875%
due 02/01/10....................... 425,000 439,875
United Mexican States Bonds,
11.375% due 09/15/16............... 600,000 691,500
United Mexican States Bonds, 11.50%
due 05/15/26....................... 175,000 210,438
Netherlands - .84%
Netherlands (Government of), 6%
Bonds due 01/15/06 (EUR)........... 630,000 622,611
Norway - .45%
Norway (Government of), 9.50% Bonds
due 10/31/02 NOK................... 2,690,000 330,386
</TABLE>
19
<PAGE> 20
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Panama - .15%
Panama (Republic of), 8.875% Bonds
due 09/30/27....................... $ 135,000 $ 113,738
Peru - .78%
Peru (Republic of),
Past Due Interest, 20 Year, 4.50%
Bonds due 03/07/17 (e)............. 345,000 230,288
Zero Coupon, Sr. Notes due
02/28/16........................... 738,350 351,086
Russia - 2.22%
Russia (Government of),
Interest Notes, Series US, 0%
Debentures due 12/15/15 (b)(c)..... 2,017 623
Principal Loans Debentures, 24
Years, 7.94% due 12/15/20 (b)(c)... 1,164,000 352,110
Russian Federation,
2.25% Bonds due 03/31/30 (b)....... 3,110,000 1,155,987
8.75% Unsec. Unsub. Notes due
07/24/05........................... 180,000 138,922
Russian Federation, Registered,
12.75% Unsec. Unsub. Notes due
06/24/28........................... 8,000 6,897
Spain - .73%
Spain (Kingdom of),
Bonos y Obligaciondel Estado,
4% Gtd. Bonds due 07/30/04 (EUR)... 310,000 264,686
7.90% Bonds due 02/28/02........... 280,000 279,976
Sweden - .23%
Sweden (Kingdom of), Series 1034,
9% Debentures due 04/20/09 (SEK)... 1,200,000 171,844
Turkey - .40%
Turkey (Republic of),
11.75% Bonds due 06/15/10.......... 130,000 133,120
11.875% Sr. Unsec. Unsub. Notes due
01/15/30........................... 67,000 71,603
12.375% Sr. Unsub. Bonds due
06/15/09........................... 90,000 95,400
Venezuela - .56%
Venezuela (Republic of),
7.88% Debentures due 12/18/07
(c)................................ 357,140 291,516
9.25% Bonds due 09/15/27........... 128,000 84,320
13.625% Unsec. Bonds due
08/15/18........................... 40,000 36,767
Vietnam - .01%
Vietnam (Government of), 3.25% Par
Bonds due 03/12/28................. 12,000 3,600
---------
Total Foreign Government Obligations
(cost: $17,851,140) 18,044,195
---------
LOAN PARTICIPATIONS - .39%
Algeria (Republic of),
Reprofiled Debt Loan Participation
Notes, Tranche 1, 6.69% due
09/04/06 (e)(f).................... 51,000 41,820
Trust 111 Notes, Tranche 3, 6% due
03/04/10 (e)(f).................... 121,000 93,170
Central Bank Asia, Series 4, Gtd.
8.625% Notes due 08/25/02 (c)(f)... 70,000 59,675
Morocco (Kingdom of) Loan
Participation Agreement, Tranche A,
6.84% due 01/01/09 (f)............. 105,000 94,080
---------
Total Loan Participations (cost:
$261,827).......................... 288,745
---------
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
CORPORATE BONDS AND NOTES - 35.52%
Aerospace - .14%
Fairchild Corp. (The), Cl. A,
10.75% Sr. Unsec. Sub. Notes due
04/15/09........................... $ 100,000 $ 69,250
Greater Toronto Airport, 5.40%
Debentures due 12/03/02 (CAD)...... 55,000 36,376
Air Travel - .38%
Amtran, Inc., 10.50 Sr. Notes due
08/01/04 (a)....................... 100,000 92,250
Atlas Air, Inc.,
9.375% Sr. Unsec. Notes due
11/15/06........................... 50,000 48,000
10.75% Sr. Notes due 08/01/05...... 50,000 50,813
Trans World Airlines, Inc., 11.50%
Sr. Sec. Notes due 12/15/04........ 125,000 91,250
Apparel & Textiles - .09%
Indorayon International Finance Co.
BV, 10% Gtd. Unsec. Unsub. Notes
due 03/29/01 (b)(f)................ 100,000 20,000
Unifrax Investment Corp., 10.50%
Sr. Notes due 11/01/03 (f)......... 50,000 46,750
Automotive - .55%
Collins & Aikman Products Co.,
11.50% Sr. Unsec. Sub. Notes due
04/15/06........................... 50,000 48,375
Hayes Wheels International, Inc.,
9.125% Sr. Sub. Notes
due 07/15/07....................... 50,000 44,750
11% Sr. Sub. Notes due 07/15/06.... 100,000 98,250
HDA Parts System, Inc., 12% Sr.
Sub. Notes due 08/01/05 (f)........ 75,000 50,250
Oxford Automotive, Inc., Series D,
10.125% Sr. Unsec. Sub. Notes due
06/15/07........................... 200,000 174,000
Bank - .54%
Financiera Energetica Nacional,
9.375% Unsec. Unsub. Notes due
06/15/06 (a)....................... 100,000 78,849
Hanvit Bank,
0%/12.75% Unsec. Sub. Notes due
03/01/10 (a)(d).................... 205,000 202,438
11.75% Unsec. Sub. Notes due
03/01/10 (a)....................... 125,000 118,813
Ongko International Finance Co. BV,
10.50% Sec. Notes due 03/29/04
(a)(b)(f).......................... 40,000 1,300
Broadcast, Radio & TV - 2.62%
Adelphia Communications Corp.,
9.25% Sr. Notes due 10/01/02....... 200,000 197,250
9.375% Sr. Notes due 11/15/09...... 200,000 185,000
Series B, 8.375% Sr. Notes due
02/01/08........................... 25,000 22,094
Series B, 10.50% Sr. Unsec. Notes
due 07/15/04....................... 50,000 50,250
AMFM Operating, Inc., Series E,
12.625% Sr. Sub. Debentures due
10/31/06 (h)....................... 31,600 36,893
Chancellor Media Corp.,
Series B, 8.13% Sr. Sub. Notes due
12/15/07........................... 50,000 50,313
Series B, 8.75% Sr. Unsec. Sub.
Notes due 06/15/07................. 50,000 50,125
Classic Cable, Inc., 10.50% Sr.
Sub. Notes due 03/01/10............ 25,000 23,063
CSC Holdings, Inc., 10.50% Sr. Sub.
Debentures due 05/15/16............ 50,000 53,125
Cumulus Media, Inc., 10.375% Sr.
Unsec. Sub. Notes due 07/01/08..... 50,000 42,250
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE> 21
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
EchoStar DBS Corp., 9.375% Sr.
Unsec. Notes due 02/01/09.......... $ 400,000 $ 384,000
Emmis Communications Corp., Series
B, 8.125% Sr. Unsec. Sub. Notes due
03/15/09........................... 150,000 136,875
Optel, Inc., Series B, 13% Sr.
Notes due 02/15/05 (b)............. 25,000 18,750
Rogers Communications, Inc., 8.75%
Sr. Notes due 07/15/07 (CAD)....... 100,000 67,154
Spanish Broadcasting Sustem, Inc.,
9.625% Sr. Sub. Notes due
11/01/09........................... 200,000 199,000
TeleWest Communications PLC,
0%/9.875% Sr. Notes due 04/15/09
(a)(d) (GBP)....................... 100,000 78,430
0%/11% Sr. Discount Debentures due
10/01/07 (d)....................... 65,000 61,588
Time Warner Telecom LLC, 9.75% Sr.
Notes due 07/15/08................. 50,000 48,375
United International Holdings,
Inc., Series B, 0%/10.75% Sr.
Discount Notes due 02/15/08 (d).... 75,000 52,500
Paxson Communications Corp.,
11.625% Sr. Sub. Notes due
10/01/02........................... 50,000 51,125
Young Broadcasting, Inc.,
8.75% Sr. Sub. Debentures due
06/15/07........................... 100,000 91,973
Series B, 9% Sr. Sub. Notes due
01/15/06........................... 50,000 47,000
Building & Construction - .45%
Formica Corp., Series B, 10.875%
Sr. Unsec. Sub. Notes due
03/01/09........................... 75,000 58,500
Kaufman & Broad Home Corp., 7.75%
Sr. Notes due 10/15/04............. 100,000 90,500
Nortek, Inc., Series B, 9.125% Sr.
Notes due 09/01/07................. 200,000 185,000
Capital Goods - .20%
Aki Holdings, Inc.,
0%/13.50% Sr. Discount Debentures
due 07/01/09 (d)................... 50,000 23,625
10.50% Sr. Unsec. Notes due
07/01/08........................... 50,000 39,500
Eagle-Picher Industries, Inc.,
9.375% Sr. Unsec. Sub. Notes due
03/01/08 (f)....................... 100,000 85,000
Chemicals & Allied Products - 1.20%
Georgia Gulf Corp., 10.375% Sr.
Sub. Notes due 11/01/07 (a)........ 50,000 52,000
Huntsman Corp./ICI Chemicals Co.
plc, 0% Sr. Unsec. Discount Notes
due 12/31/09....................... 100,000 33,000
10.125% Sr. Unsec. Sub. Notes due
07/01/09........................... 100,000 100,750
Hydrochem Industrial Services,
Inc., 10.375% Sr. Sub. Notes due
08/01/07........................... 50,000 38,250
Lyondell Chemical Co.,
Series B, 9.875% Sec. Notes due
05/01/07........................... 200,000 197,500
10.875% Sr. Sub. Notes due
05/01/09........................... 100,000 99,500
NL Industries, Inc., 11.75% Sr.
Sec. Notes due 10/15/03............ 40,000 40,800
PCI Chemicals Canada, Inc., 9.25%
Sec. Notes due 10/15/07 (f)........ 50,000 31,000
Pioneer Americas Acquisition Corp.,
9.25% Sr. Notes due 06/15/07....... 50,000 33,000
Polymer Group, Inc., 9% Sr. Sub.
Notes due 07/01/07................. 50,000 42,500
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Sterling Chemicals, Inc.,
11.75% Sr. Unsec. Sub. Notes due
08/15/06........................... $ 150,000 $ 123,000
Series B, 12.375% Sr. Sec. Notes
due 07/15/06....................... 100,000 101,500
Commercial Services - .06%
Kindercare Learning Centers, Inc.,
9.50% Sr. Sub. Notes due
02/15/09........................... 50,000 46,000
Computer Software - .11%
Equinix, Inc., 13% Sr. Notes due
12/01/07 (a)....................... 50,000 47,438
NorthPoint Communications Group,
Inc., 12.875% Notes due 02/15/10
(a)................................ 50,000 36,000
Conglomerates - .12%
Jordan Industries, Inc., Series D,
10.375% Sr. Unsec. Notes due
08/01/07........................... 100,000 91,500
Consumer Products - .52%
Bell Sports, Inc., Series B, 11%
Sr. Unsec. Sub Notes due
08/15/08........................... 110,000 109,450
Holmes Products Corp., 9.875% Sr.
Unsec. Sub. Bonds due 11/15/07..... 25,000 17,500
Icon Health & Fitness, Inc., 12%
Unsec. Notes due 09/27/05 (a)(f)... 37,000 24,050
Iron Mountain, Inc.,
8.75% Sr. Sub. Notes due
09/30/09........................... 50,000 46,000
10.125% Sr. Sub. Notes due
10/01/06........................... 50,000 50,000
Revlon Consumer Products, Inc.,
8.625% Sr. Unsec. Sub. Notes due
02/01/08........................... 50,000 25,250
9% Sr. Notes due 11/01/06.......... 10,000 7,200
Salton, Inc., 10.75% Sr. Unsec.
Sub. Notes due 12/15/05............ 75,000 73,875
TAG Heuer International SA, 12% Sr.
Sub. Notes due 12/15/05 (f)........ 33,000 35,520
Diversified Financial - .29%
AMRESCO, Inc.,
Series 97-A, 10% Sr. Sub. Notes due
03/15/04........................... 75,000 37,875
Series 98-A, 9.875% Sr. Sub. Notes
due 03/15/05....................... 100,000 50,500
IBJ Preferred Capital Co. (The)
LLC, Floating Bonds due 12/29/49
(a)................................ 125,000 114,214
Veritas Capital Trust, 10% Notes
due 01/01/28....................... 50,000 15,500
Diversified Media - .37%
IPC Magazines Group plc, 9.625%
Bonds due 03/15/08 (f) (GBP)....... 100,000 130,733
Lamar Media Corp., 9.625% Sr.
Unsec. Sub. Notes due 12/01/06..... 100,000 100,500
Sinclair Broadcast Group, Inc.,
8.75% Sr. Sub. Notes due
12/15/07........................... 50,000 44,000
Electrical Utilities - .15%
Calpine Corp., 8.75% Sr. Notes due
07/15/07........................... 115,000 111,694
Central Termica Guemes SA, 12%
Unsec. Bonds due 11/26/01
(a)(b)(f).......................... 50,000 2,500
Electronics - .47%
Amkor Technology, Inc., 9.25% Sr.
Unsec. Notes due 5/01/06........... 300,000 295,875
Fairchild Semiconductor Corp.,
10.375% Sr. Unsec. Notes due
10/01/07........................... 50,000 50,875
</TABLE>
21
<PAGE> 22
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Energy Services & Producers - .77%
Gothic Production Corp., Series B,
11.125% Sr. Sec. Notes due 05/01/05
(a)................................ $ 50,000 $ 46,625
Grant Geophysical, Inc., Series B,
9.75% Sr. Unsec. Notes due 02/15/08
(f)................................ 90,000 54,900
Great Lakes Carbon Corp., Series B,
10.25% Sr. Sub. Notes due
05/15/08........................... 150,000 130,500
P&L Coal Holdings Corp., Series B,
9.625% Sr. Sub. Notes due
05/15/08........................... 100,000 92,750
Ram Energy, Inc., 11.50% Sr. Unsec.
Notes due 02/15/08 (f)............. 210,000 103,163
Universal Compression, Inc.,
0%/9.875% Sec. Discount Notes due
02/15/08 (d)....................... 200,000 144,000
Environmental Management - .57%
Allied Waste North America, Inc.,
Series B, 7.875% Sr. Unsec. Notes
due 01/01/09....................... 250,000 213,125
Series B, 10% Sr. Unsec. Sub. Notes
due 08/01/09....................... 250,000 208,750
Financial - 1.41%
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 64,000
Charter Communications Holdings
LLC,
0%/9.92% Sr. Discount Notes due
04/01/11 (d)....................... 500,000 283,750
8.25% Sr. Notes due 04/01/07....... 50,000 44,125
Federal Home Loan Bank, 5.625%
Unsec. Unsub. Notes due 06/10/03
(GBP).............................. 20,000 29,550
GMAC, Series EC, 6.875% Notes due
09/09/04 (GBP)..................... 140,000 212,444
LaBranche & Co., Inc., 12% Sr. Sub.
Notes due 03/01/07 (a)............. 50,000 49,813
Local Financial Corp., 11% Sr.
Notes due 09/08/04 (a)............. 50,000 50,000
Netia Holdings BV,
13.50% Sr. Notes due 06/15/09
(EUR).............................. 90,000 86,273
Series B, 0%/11% Sr. Discount Notes
due 11/01/07 (d) (DEM)............. 50,000 17,461
Polytama International Finance BV,
11.25% Sec. Notes due 06/15/07
(f)................................ 50,732 2,537
RBF Finance Co., 11% Sr. Sec. Notes
due 03/15/06....................... 125,000 133,906
SBS Agro Finance BV, 10.25% Bonds
due 07/21/00 (b)(f)................ 75,000 2,625
Southern Pacific Funding Corp.,
11.50% Sr. Notes due 11/01/04
(b)(f)............................. 50,000 23,250
Sovereign Bancorp, Inc., 10.50% Sr.
Unsec. Notes due 11/15/06.......... 50,000 49,375
Food & Beverages - .47%
Aurora Foods, Inc., Series B, 8.75%
Sr. Sub. Notes due 07/01/08........ 100,000 56,000
Del Monte Foods Co., Series B,
0%/12.50% Sr. Discount Notes due
12/15/07 (d)....................... 35,000 25,988
Doane Pet Care Co., 9.75% Sr.
Unsec. Sub. Notes due 05/15/07..... 73,000 62,415
New World Pasta Co., 9.25% Sr.
Notes due 02/15/09 (f)............. 75,000 44,625
Purina Mills, Inc., 9% Sr. Unsec.
Sub. Notes due 03/15/10 (b)(f)..... 50,000 14,500
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Shoppers Food Warehouse Corp.,
9.75% Sr. Notes due 06/15/04....... $ 20,000 $ 20,968
Smithfield Foods, Inc., 7.625% Sr.
Unsec. Sub. Notes due 02/15/08..... 100,000 89,500
Sparkling Spring Water Group, Ltd.,
11.50% Sr. Sec. Sub. Notes due
11/15/07 (f)....................... 50,000 39,500
Gas Utilities - .07%
AmeriGas Partners, L.P., 10.125%
Sr. Notes due 04/15/07............. 50,000 50,125
Health Care/Supplies &
Services - .84%
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)
(i)................................ 100,000 103,250
Fresenius Medical Cap Trust II,
7.875% Gtd. Sec. Trust Preferred
Bonds due 02/01/08 (f)............. 190,000 169,100
Fresenius Medical Cap Trust III,
7.375% Gtd. Sec. Trust Preferred
Bonds due 02/01/08 (DEM)........... 10,000 4,866
ICN Pharmaceutical, Inc., 8.75% Sr.
Notes due 11/15/08 (a)............. 100,000 98,500
Oxford Health Plans, Inc., 11% Sr.
Unsec. Notes due 05/15/05.......... 100,000 103,500
Tenet Healthcare Corp., 8.625% Sr.
Sub. Notes due 01/15/07............ 100,000 95,500
Unilab Finance Corp., 12.75% Sr.
Sub. Notes due 10/01/09............ 50,000 51,500
Homebuilders/Real Estate - .27%
D. R. Horton, Inc., 8% Sr. Notes
due 02/01/09....................... 50,000 43,500
Del Web Corp., 10.25% Sr. Unsec.
Sub. Notes due 02/15/10............ 100,000 86,750
Winstar Communications, Inc.,
12.75% Sr. Notes due 04/15/10
(a)................................ 75,000 69,938
Hotel/Gaming - 1.50%
Apcoa, Inc., 9.25% Sr. Unsec. Sub.
Notes due 03/15/08................. 50,000 17,563
Capstar Hotel Co., 8.75% Sr. Sub.
Notes due 08/15/07................. 25,000 22,750
Casino Magic of Louisiana Corp.,
Series B, 13% due 08/15/03......... 40,000 42,400
Flextronics International, Ltd.,
9.875% Sr. Sub. Notes due 07/01/10
(a)................................ 100,000 100,750
Florida Panthers Holdings, Inc.,
9.875% Sr. Sub. Notes due
04/15/09........................... 150,000 140,625
HMH Properties, Inc., Series C,
8.45% Sr. Notes due 12/01/08....... 75,000 69,469
Hollywood Casino Corp., 11.25% Sr.
Sec. Notes due 05/01/07............ 150,000 153,375
Hollywood Park, Inc., Series B,
9.25% Sr. Unsec. Notes due
02/15/07........................... 75,000 74,625
Horseshoe Gaming LLC, 9.375% Sr.
Sub. Notes due 06/15/07............ 75,000 73,875
Intrawest Corp., 9.75% Sr. Notes
due 08/15/08....................... 75,000 74,250
Isle of Capri Casinos, 8.75% Sr.
Unsec. Notes due 04/15/09.......... 100,000 92,500
Jupiters, Ltd., 8.50% Sr. Unsec.
Notes due 03/01/06 (f)............. 75,000 69,938
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE> 23
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Meristar Hospitality Corp., 8.75%
Sr. Unsec. Sub. Notes due
08/15/07........................... $ 50,000 $ 44,500
Mohegan Tribal Gaming Authority,
8.125% Sr. Notes due 01/01/06...... 100,000 95,000
8.75% Sr. Unsec. Sub. Notes due
01/01/09........................... 50,000 47,500
Industrial - 1.50%
Federal-Mogul Corp., 7.875% Notes
due 07/01/10....................... 125,000 87,111
Fleming Companies, Inc., Series B,
10.625% Sr. Sub. Notes due
07/31/07........................... 100,000 83,500
Focal Communications, Inc.,
0%/12.125% Sr. Unsec. Discount
Notes due 02/15/08 (d)............. 130,000 87,750
11.875% Sr. Notes due 01/15/10
(a)................................ 50,000 50,250
Globe Manufacturing Corp., Series
B, 10% Sr. Unsec. Sub. Notes due
08/01/08 (f)....................... 100,000 11,000
International Wire Group, Inc.,
Series B, 11.75% Sr. Sub. Notes due
06/01/05........................... 65,000 65,325
Leviathan Gas Pipeline/Leviathan
Finance Corp., 10.375% Sr. Unsec.
Sub. Notes due 06/01/09 (f)........ 200,000 202,000
Packaged Ice, Inc., Series B, 9.75%
Sr. Unsec. Notes due 02/01/05...... 25,000 20,750
Pantry, Inc. (The), 10.25% Sr. Sub.
Notes due 10/15/07................. 50,000 47,250
Pentacon, Inc., Series B, 12.25%
Sr. Unsec. Notes due 04/01/09...... 100,000 55,000
Phillips-Van Heusen Corp., 9.50%
Sr. Unsec. Sub. Notes due
05/01/08........................... 50,000 45,500
Roller Bearing Co. of America,
Inc., Series B, 9.625% Sr. Sub.
Notes due 06/15/07................. 125,000 114,375
Safety-Kleen Corp., 9.25% Sr.
Unsec. Notes due 05/15/09 (b)...... 150,000 3,000
Shaw Communications, Inc., 8.54%
Debentures due 09/30/27 (CAD)...... 80,000 50,890
Styling Technology Corp., 10.875%
Sr. Unsec. Sub. Notes due
07/01/08........................... 35,000 3,500
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)...................... 200,000 184,000
Industrial Services - .49%
Amercan Plumbing & Mechanic, Series
B, 11.625% Sr. Gtd. Sub. Notes due
10/15/08........................... 75,000 69,938
Comforce Operating, Inc., Series B,
12% Sr. Notes due 12/01/07......... 50,000 25,000
Fisher Scientific International,
Inc., 9% Sr. Unsec. Sub. Notes due
02/01/08........................... 100,000 91,500
Great Lakes Dredge & Dock Corp.,
11.25% Sr. Unsec. Sub. Notes due
08/15/08........................... 110,000 109,863
United Rentals, Inc., Series B, 9%
Sr. Unsec. Sub. Notes due
04/01/09........................... 75,000 66,375
Information Technology - 4.14%
Cellnet Data Systems, Inc., 0%/14%
Sr. Discount Notes due 10/01/07
(b)(d)............................. 45,000 3,319
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Covad Communications Group, Inc.,
0%/13.50% Sr. Discount Notes due
03/15/08 (d)....................... $ 50,000 $ 24,500
Crown Castle International Corp.,
0%/10.375% Sr. Discount Notes due
05/15/11 (d)....................... 350,000 213,938
0%/10.625% Sr. Unsec. Discount
Notes due 11/15/07 (d)............. 75,000 55,500
10.75% Sr. Notes due 08/01/11...... 100,000 101,375
CTI Holdings SA, 0%/11.50% Sr.
Deferred Coupon Notes due 04/15/08
(d)................................ 50,000 28,750
Details, Inc., Series B, 10% Sr.
Sub. Notes due 11/15/05............ 25,000 23,500
Exodus Communications, Inc.,
10.75% Sr. Unsec. Sub. Notes due
12/15/09........................... 100,000 96,500
11.25% Sr. Notes due 07/01/08...... 430,000 425,700
11.25% Sr. Notes due 07/15/10
(a)................................ 125,000 125,313
Global Crossing Holdings, Ltd.,
9.625% Sr. Notes due 05/15/08...... 300,000 291,000
Globix Corp., 12.50% Sr. Notes due
02/01/10........................... 100,000 82,000
ICG Services, Inc., 0%/10% Sr.
Exchangeable Unsec. Discount Notes
due 02/15/08 (d)................... 35,000 18,200
KMC Telecom Holdings, Inc.,
0%/12.50% Sr. Unsec. Discount Notes
due 02/15/08 (d)................... 50,000 23,500
13.50% Sr. Unsec. Notes due
05/15/09........................... 200,000 176,000
Nextel Communications, Inc., Sr.
Discount Notes,
0%/9.95% due 02/15/08 (d).......... 75,000 54,938
0%/10.65% due 09/15/07 (d)......... 450,000 353,250
Nextlink Communications, Inc.,
9% Sr. Notes due 03/15/08.......... 100,000 91,500
9.625% Sr. Notes due 10/01/07...... 125,000 117,813
10.75% Sr. Unsec. Notes due
11/15/08........................... 50,000 49,250
10.75% Sr. Unsec. Notes due
06/01/09........................... 200,000 197,000
Pinnacle Holdings, Inc., 0%/10% Sr.
Unsec. Discount Notes due 03/15/08
(d)................................ 100,000 69,000
PSINet, Inc., Series B, 10% Sr.
Unsec. Notes due 02/15/05.......... 150,000 138,000
Rhythms NetConnections, Inc., 14%
Sr. Unsec. Notes due 02/15/10
(a)................................ 50,000 36,250
Satelites Mexicanos SA, 10.125% Sr.
Notes due 11/01/04................. 50,000 33,500
SBA Communications Corp., 0%/12%
Sr. Unsec. Discount Notes due
03/01/08 (d)....................... 200,000 141,000
Wam!Net, Inc., Series B, 0%/13.25%
Sr. Unsec. Discount Notes due
03/01/05 (d)....................... 200,000 112,250
Insurance - .08%
Veritas Holdings, 9.625% Sr. Notes
due 12/15/03....................... 65,000 59,150
Leisure & Entertainment - .88%
AMC Entertainment, Inc., 9.50% Sr.
Unsec. Sub. Notes due 02/01/11..... 100,000 45,000
Premier Cruise, Ltd., 11% Sr. Notes
due 03/15/08 (a)(b)(f)............. 50,000 11,750
Premier Parks, Inc.,
0%/10% Sr. Discount Notes due
04/01/08 (d)....................... 50,000 33,938
9.25% Sr. Notes due 04/01/06....... 50,000 47,000
</TABLE>
23
<PAGE> 24
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
9.75% Sr. Notes due 06/15/07....... $ 150,000 $ 144,938
SFX Entertainment, Inc.,
9.125% Sr. Unsec. Sub. Notes due
12/01/08........................... 200,000 201,000
Series B, 9.125% Sr. Unsec. Sub.
Notes due 02/01/08................. 125,000 125,625
Six Flags Entertainment Corp.,
8.875% Sr. Notes due 04/01/06...... 50,000 47,750
Manufacturing - .65%
Applied Power, Inc., 8.75% Sr. Sub.
Notes due 04/01/09................. 75,000 77,625
Ball Corp.,
7.75% Sr. Unsec. Notes due
08/01/06........................... 50,000 47,000
8.25% Sr. Unsec. Sub. Notes due
08/01/08........................... 50,000 47,000
BE Aerospace, Inc., 9.50% Sr.
Unsec. Sub. Notes due 11/01/08..... 50,000 46,000
Grove Worldwide LLC, 9.25% Sr. Sub.
Notes due 05/01/08................. 50,000 19,000
Insilco Holding Co., Series B, 12%
Gtd. Sr. Sub. Notes due 08/15/07... 50,000 49,938
Moll Industries, 10.50% Sr. Unsec.
Sub. Notes due 07/01/08............ 100,000 17,500
SC International Services, Inc.,
Series B, 9.25% Sr. Sub. Notes due
09/01/07 (f)....................... 50,000 47,500
Tenneco, Inc., 11.625% Sr. Unsec.
Sub Notes due 10/15/09............. 50,000 44,500
Terex Corp., Series C, 8.875% Sr.
Unsec. Sub. Notes due 04/01/08
(f)................................ 100,000 90,000
Metals/Mining - .40%
Centaur Mining & Exploration, Ltd.,
11% Gtd. Sr. Notes due 12/01/07.... 25,000 20,000
International Utility Structures,
Inc., 10.75% Sr. Sub. Notes due
02/01/08........................... 25,000 20,500
Kaiser Aluminum & Chemical Corp.,
12.75% Sr. Sub. Notes due
02/01/03........................... 125,000 114,375
Metallurg Holdings, Inc., 0%/12.75%
Sr. Discount Notes due 07/15/08
(d)................................ 100,000 25,500
Metallurg, Inc., 11% Sr. Notes due
12/01/07........................... 150,000 118,500
Oil & Gas - .76%
Denbury Management, Inc., 9% Sr.
Sub. Notes due 03/01/08............ 150,000 136,500
Frontier Oil Corp., 11.75% Sr.
Notes due 11/15/09................. 50,000 50,000
Ocean Rig Norway AS, 10.25% Sr.
Sec. Notes due 06/01/08............ 100,000 83,000
Parker Drilling Co., Series D,
9.75% Sr. Unsec. Notes due
11/15/06........................... 100,000 96,750
Petroleos Mexicanos, 8.85% Bonds
due 09/15/07....................... 64,000 64,640
R&B Falcon Corp., 12.25% Sr. Unsec.
Notes due 03/15/06................. 50,000 54,500
Stone Energy Corp., 8.75% Sr. Sub.
Notes due 09/15/07................. 85,000 80,750
Paper & Forest Products - 1.73%
Doman Industries, Ltd., 8.75% Sr.
Notes due 03/15/04................. 75,000 58,125
Fletcher Challenge, Ltd., 14.50%
Cv. Sub. Notes due 09/30/00 NZD.... 85,000 40,345
Gaylord Container Corp., 9.75%
Unsec. Sr. Notes due 06/15/07...... 100,000 79,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Packaging Corp. of America, 9.625%
Sr. Unsec. Sub. Notes due
04/01/09........................... $ 150,000 $ 148,875
Repap New Brunswick, Inc.,
9% First Priority Sr. Sec. Notes
due 06/01/04....................... 50,000 47,500
10.625% Second Priority Sr. Sec.
Notes due 04/15/05................. 150,000 132,000
Riverwood International Corp.,
10.625% Sr. Unsec. Notes due
08/01/07........................... 300,000 291,000
10.875% Sr. Sub. Notes due
04/01/08........................... 100,000 88,000
SD Warren Co., 14% Unsec. Notes due
12/15/06 (h)....................... 254,926 281,693
URS Corp., Series B, 12.25% Sr.
Sub. Notes due 05/01/09............ 100,000 102,500
US Timberlands Co. LP, 9.625% Sr.
Notes due 11/15/07................. 25,000 22,000
Restaurants - .04%
Family Restaurants, Inc., 9.75% Sr.
Notes due 02/01/02................. 75,000 33,000
Retail - .51%
Amazon.com, Inc., 0%/10% Unsec. Sr.
Discount Notes due 05/01/08 (d).... 150,000 81,000
BF Saul REIT, Series B, 9.75% Sr.
Sec. Notes due 04/01/08............ 165,000 142,313
Blount, Inc., 13% Sr. Sub. Notes
due 08/01/09....................... 100,000 102,000
Boyds Collection, Ltd. (The),
Series B, 9% Sr. Unsec. Sub. Notes
due 05/15/08....................... 60,000 52,800
Security Services - .10%
Protection One Alarm Monitoring,
Inc., 7.375% Sr. Unsec. Notes due
08/15/08........................... 100,000 74,500
Specialty Retailing - .12%
Eye Care Centers of America, Inc.,
9.125% Sr. Unsec. Sub. Notes due
05/01/08 (f)....................... 25,000 14,250
Finlay Fine Jewelry Corp., 8.375%
Sr. Notes due 05/01/08............. 50,000 44,500
Home Interior & Gifts, Inc.,
10.125% Sr. Sub. Notes due 06/01/08
(f)................................ 50,000 28,500
Steel - .39%
AK Steel Corp.,
7.875% Sr. Unsec. Notes due
02/15/09........................... 50,000 44,375
9.125% Sr. Notes due 12/15/06...... 100,000 96,000
California Steel Industries, Series
B, 8.50% Sr. Unsec. Notes due
04/01/09........................... 75,000 68,625
National Steel Corp., Series D,
9.875% First Mortgage due
03/01/09........................... 100,000 83,500
Supermarkets - .02%
Pathmark Stores, Inc.,
10.75% Jr. Sub. Deferred Coupon
Notes due 11/01/03 (b)(d).......... 50,000 3,000
12.625% Sub. Notes due 06/15/02
(b)................................ 50,000 12,500
Telecommunications - 9.05%
360 Networks Inc.,
13% Sr. Unsec. Notes due 05/01/08
(a)................................ 50,000 50,000
13% Sr. Unsec. Notes due 05/01/08
(a) (EUR).......................... 50,000 46,854
Adelphia Business Solutions, Inc.,
12% Sr. Sub. Notes due 11/01/07.... 75,000 70,500
Arch Communications, Inc., 12.75%
Sr. Notes due 07/01/07............. 50,000 38,250
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE> 25
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Clearnet Communications, Inc.,
0%/14.75% Sr. Unsec. Discount Notes
due 12/15/05 (d)................... $ 15,000 $ 15,488
Colo.Com, Units, (each unit
consists of $1,000 principal amount
of 13.875% Sr. Notes due 03/15/10
and one warrant to purchase 19.9718
ordinary shares) (a)(i)............ 50,000 53,750
Colt Telecom Group PLC, 0%/12%
Unsec. Sr. Unsec. Discount Notes
due 12/15/06 (d)................... 25,000 22,031
7.625% Bonds due 07/31/08 (DEM).... 200,000 89,447
8.875% Sr. Notes due 11/30/07
(DEM).............................. 25,000 11,757
10.125% Sr. Notes due 11/30/07
(GBP).............................. 35,000 53,044
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)............ 100,000 126,875
Diamond Cable Communications plc,
0%/11.75% Sr. Discount Notes due
12/15/05 (d)....................... 200,000 189,750
Flag Telecom Holdings, Ltd, 11.625%
Sr. Notes due 03/30/10 (a)......... 25,000 24,250
11.625% Sr. Notes due 03/30/10
(EUR) (f).......................... 25,000 22,112
Global Telesystems Group, Inc.,
10.50% Sr. Unsec. Bonds due
12/01/06 (EUR) (a)................. 50,000 38,607
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 29,000
Insight Midwest LP/Insight Capital,
Inc., 9.75% Sr. Notes Due
10/01/09........................... 100,000 98,000
Intermedia Communications, Inc.,
8.875% Sr. Notes due 11/01/07...... 175,000 163,625
Series B, 0%/12.25% Sr. Discount
Notes due 03/01/09 (d)............. 100,000 60,250
Series B, 8.50% Sr. Notes due
01/15/08........................... 75,000 69,000
Series B, 8.60% Sr. Unsec. Notes
due 06/01/08....................... 90,000 83,250
Jazztel plc, 13.25% Sr. Notes due
12/15/09 (EUR)..................... 150,000 131,634
Leap Wireless International, Inc.,
Units (each unit consists of $1,000
principal amount of 12.50% Sr.
Notes due 04/15/10 and one warrant
to purchase 5.146 ordinary shares)
(a)(i)............................. 50,000 44,000
Level 3 Communications, Inc.,
0%/10.50% Sr. Discount Notes due
12/01/08 (d)....................... 75,000 45,563
9.125% Sr. Unsec. Notes due
05/01/08........................... 250,000 224,375
11.25% Sr. Notes due 03/15/10
(a)................................ 50,000 49,250
Loral Space & Communications, Ltd.,
9.50% Sr. Notes due 01/15/06....... 50,000 36,250
McLeodUSA, Inc.,
8.125% Sr. Unsec. Notes due
02/15/09........................... 135,000 121,838
8.375% Sr. Notes due 03/15/08...... 250,000 230,000
9.25% Sr. Notes due 07/15/07....... 40,000 38,600
Metrocall, Inc., 10.375% Sr. Sub.
Notes due 10/01/07 (f)............. 50,000 35,000
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
------------ -----------
<S> <C> <C>
Metromedia Fiber Network, Inc.,
10% Sr. Notes due 12/15/09......... $ 250,000 $ 246,250
Series B, 10% Sr. Unsec. Notes due
11/15/08........................... 150,000 147,750
Metromedia International Group,
Inc., 0%/10.50% Sr. Unsec. Discount
Notes due 09/30/07 (d)............. 72,825 36,413
MGC Communications, Inc./Mpower
Communications, 13% Sr. Notes due
04/01/10 (a)....................... 75,000 70,500
Microcell Telecommunications, Inc.,
0%/12% Sr. Unsec. Discount Notes
due 06/01/09 (d)................... 250,000 164,375
Series B, 0%/10.125% Sr. Discount
Notes due 10/15/07 (CAD) (d)....... 100,000 44,544
Millicom International Cellular SA,
0%/13.50% Sr. Discount Notes due
06/01/06 (d)(f).................... 160,000 136,000
NTL, Inc.,
0%/10.75% Sr. Unsec. Unsub. Notes
due 04/01/08 (GBP) (a)(d).......... 50,000 47,120
9.875% Sr. Notes due 11/15/09 (EUR)
(a)................................ 50,000 44,463
Series B, 0%/9.75% Sr. Deferred
Coupon Notes due 04/01/08 (d)...... 100,000 62,500
Series B, 0%/9.75% Sr. Notes due
04/15/09 (GBP) (d)................. 200,000 152,460
Series B, 10% Sr. Notes due
02/15/07........................... 100,000 95,000
Omnipoint Corp.,
11.50% Sr. Notes due 09/15/09
(a)................................ 315,000 337,050
11.625% Sr. Notes due 08/15/06..... 300,000 324,000
ORBCOMM Global LP/ORBCOMM Capital
Corp., Series B, 14% Sr. Notes due
08/15/04 (f)....................... 75,000 58,500
Orion Networks Systems, Inc.,
0%/12.50% Sr. Discount Notes due
01/15/07 (d)(f).................... 200,000 82,000
Price Communications Wireless,
Inc.,
9.125% Sec. Notes due 12/15/06..... 100,000 101,000
11.75% Sr. Sub. Notes due
07/15/07........................... 50,000 53,750
PTC International Finance BV,
0%/10.75% Unsec. Sub. Notes due
07/01/07 (d)....................... 34,000 24,140
PTC International Finance II SA,
11.25% Sr. Sub. Notes due 12/01/09
(d)(f) (EUR)....................... 50,000 49,961
Qwest Communications International,
Inc., 0%/9.47% Sr. Discount Notes
due 10/15/07 (d)................... 140,000 117,602
RCN Corp., 10.125% Sr. Unsec. Notes
due 01/15/10....................... 150,000 124,875
RSL Communications plc, 0%/10%
Bonds due 03/15/08 (DEM) (d)(f).... 50,000 13,506
12.875% Sr. Unsec. Notes due
03/01/10 (a)....................... 100,000 75,000
Rural Cellular Corp., Series B,
9.625% Sr. Sub. Notes due
05/15/08........................... 100,000 97,000
Spectrasite Holdings, Inc.,
0%/12% Sr. Discount Notes due
07/15/08 (d)....................... 200,000 139,000
10.75% Sr. Notes due 03/15/10...... 50,000 49,875
</TABLE>
25
<PAGE> 26
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (j) (note 1)
---------- ---------
<S> <C> <C>
Tele1 Europe BV, 11.875% Sr. Notes
due 12/01/09 EUR (a)............... $ 75,000 $ 67,372
Teligent, Inc., 11.50% Sr. Notes
due 12/01/07....................... 100,000 77,500
United Pan-Europe Communications
NV,
10.875% Sr. Notes due 08/01/09..... 300,000 261,000
11.25% Sr. Notes due 11/01/09 (EUR)
(a)................................ 250,000 210,962
US Unwired, Inc., 0%/13.375% Sr.
Discount Notes due 11/01/09 (d).... 300,000 162,750
Verio, Inc.,
10.375% Sr. Unsec. Notes due
04/01/05........................... 100,000 105,000
11.25% Sr. Unsec. Notes due
12/01/08........................... 200,000 224,500
Viatel, Inc., 11.25% Sr. Sec. Notes
due 04/15/08....................... 150,000 111,000
Voicestream Wireless Corp., 10.375%
Sr. Notes due 11/15/09............. 300,000 310,500
Transportation - .44%
Budget Group, Inc., 9.125% Sr.
Unsec. Notes due 04/01/06.......... 100,000 64,000
Millenium Seacarriers, Inc., 12%
Gtd. Sr. Sec. First Priority Ship
Mortgage Notes due 07/15/05 (f).... 100,000 52,000
Navigator Gas Transportation plc,
10.50% First Priority Ship Mortgage
Notes due 06/30/07 (a)............. 25,000 10,000
Transtar Holdings LP/Transtar
Capital Corp., Series B, 13.375%
Sr. Discount Notes due 12/15/03.... 200,000 198,250
Utilities (Sewer) - .06%
Azurix Corp., 10.75% Sr. Notes due
02/15/10 (a)....................... 50,000 48,125
---------
Total Corporate Bonds and Notes (cost:
$29,975,461) 26,455,684
---------
COMMON STOCKS - .55%
<CAPTION>
shares
------------
<S> <C> <C>
Chesapeake Energy Corp. (b)......... 11,872 92,008
Forcenergy, Inc. (b)(f)............. 2,893 58,218
Globix Corp. (b)(f)................. 704 20,636
Grant Prideco, Inc. (b)............. 1,895 47,375
Horizon Group Properties, Inc.
(b)................................. 29 96
Optel, Inc. (b)(f).................. 85 1
Price Communications Corp. (b)...... 4,523 106,562
SF Holdings Group, Inc., CI.C
(a)(b)(f)........................... 37 --
Viatel, Inc. (b).................... 401 11,429
Weatherford International, Inc.
(b)................................. 1,895 75,445
WRC Media Corp. (b)................. 270 --
---------
Total Common Stocks (cost: $245,673) 411,770
---------
PREFERRED STOCKS - 1.64%
BankUnited Capital Trust, 10.25%
Guaranteed Bonds due 12/31/26...... 100,000 84,750
Concentric Network Corp., Series B,
13.50% Redeemable Exchangeable
(h)................................ 58 57,130
Dobson Communications Corp., 13% Sr.
Exchangeable (h)................... 219 226,665
e.spire Communications, Inc., 12.75%
Jr. Redeemable (h)................. 58 10,440
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
value
shares (note 1)
------------ -----------
<S> <C> <C>
Eagle-Picher Holdings, Inc., Series
B, 0%/11.75% Cum. Exchangeable
(d)(f)............................. 10 $ 25,000
ICG Holdings, Inc., 14.25%
Exchangeable (h)................... 41 35,568
Nebco Evans Holdings Co., 11.25% Sr.
Redeemable Exchangeable (h)........ 1,209 151
Nextel Communications, Inc., Series
E, 11.125% Exchangeable (h)........ 59 57,230
NEXTLINK Communications, Inc., 14%
Cum. (h)........................... 6,015 309,773
Paxson Communications Corp., 13.25%
Cum. Jr. Exchangeable (h).......... 50,000 48,000
PRIMEDIA, Inc.,
Series F, 9.20% Exchangeable....... 100 9,050
Series H, 8.625% Exchangeable...... 3,000 258,000
Rural Cellular Corp., Series B,
11.375% Cum. Sr. (h)............... 58 54,520
SF Holdings Group, Inc., Series B,
13.75% (h)......................... 10 42,000
---------
Total Preferred Stocks (cost: $1,546,940) 1,218,277
---------
<CAPTION>
units
------------
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES - .15%
Charles River Laboratories, Inc.
Wts., Exp. 10/09 (f)............... 100 1,000
Comunicacion Celular SA Wts., Exp.
11/03 (f).......................... 100 2,000
Convergent Communications, Inc.
Wts., Exp. 04/08 (f)............... 100 2,200
Firstworld Communications, Inc.
Wts., Exp. 04/08 (a)............... 75 5,250
Gothic Energy Corp. Wts., Exp. 01/03
(f)................................ 1,304 13
Gothic Energy Corp. Wts., Exp. 09/04
(f)................................ 1,400 14
Gothic Energy Corp. Wts., Exp. 05/05
(f)................................ 991 99
HF Holdings, Inc. Wts., Exp. 09/00
(f)................................ 361 3,613
Insilco, Inc. Wts., Exp. 08/07...... 20 --
KMC Telecom Holdings, Inc., Wts.,
Exp. 04/08 (a)(f).................. 100 300
Long Distance International, Inc.
Wts., Exp. 04/08 (f)............... 50 50
Millenium Seacarriers, Inc. Wts.,
Exp. 07/05 (a)(f).................. 100 13
Occidente Y Caribe Celular SA Wts.,
Exp. 03/04 (f)..................... 400 6,000
Orion Network Systems, Inc. Wts.,
Exp. 01/07......................... 100 1,175
Petersburg Long Distance, Inc. Wts.,
Exp. 01/01(a)(f)................... 50 1
Price Communication Corp. Wts., Exp.
08/07 (f).......................... 516 86,172
Republic of Venezuela Wts., Exp.
04/20.............................. 1,250 --
Wam!Net, Inc. Wts., Exp. 03/05
(a)(f)............................. 600 6,975
---------
Total Rights, Warrants and Certificates (cost:
$38,750) 114,875
---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE> 27
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
---------------------------------------------------------------------
face amount value
or units (m) (note 1)
------------ -----------
<S> <C> <C>
STRUCTURED INSTRUMENTS - 2.80%
Citibank, Brazilian Real Linked
Notes,
24.10% due 05/26/03 (BRA).......... 80,111 $ 82,009
24.25% due 05/23/03 (BRA).......... 120,000 123,396
Citibank, Mexican Peso Linked Notes,
19.75% due 06/27/02 (MXP).......... 100,251 102,075
20.90% due 06/23/03 (MXP).......... 98,607 99,869
21.20% due 06/16/03 (MXP).......... 200,000 204,460
21.30% due 06/23/03 (MXP).......... 49,787 50,817
Credit Suisse First Boston Corp.,
Russian GKO Linked Notes,
0% due 12/15/01 (e)(f) (RUR)....... 216,000 4,031
25% due 02/06/02 (e)(f) (RUR)...... 63,050 1,471
25% due 05/22/02 (e)(f) (RUR)...... 63,050 1,422
25% due 06/05/02 (e)(f) (RUR)...... 63,050 1,423
25% due 09/18/02 (e)(f) (RUR)...... 63,050 1,375
25% due 10/09/02 (e)(f) (RUR)...... 63,050 1,326
25% due 01/22/03 (e)(f) (RUR)...... 63,050 1,281
25% due 02/05/03 (e)(f) (RUR)...... 63,050 1,289
25% due 10/08/03 (e)(f) (RUR)...... 63,050 1,173
25% due 05/21/03 (e)(f) (RUR)...... 63,050 1,247
25% due 06/04/03 (e)(f) (RUR)...... 63,050 1,239
25% due 09/17/03 (e)(f) (RUR)...... 896,820 17,488
25% due 01/21/04 (e)(f) (RUR)...... 63,050 1,146
Credit Suisse First Boston Corp.,
Russian OFZ Linked Notes,
25% due 02/06/02 (e)(f) (RUR)...... 243,860 5,688
25% due 05/22/02 (e)(f) (RUR)...... 303,260 6,839
25% due 06/05/02 (e)(f) (RUR)...... 732,600 16,534
25% due 06/05/02 (e)(f) (RUR)...... 744,730 16,808
25% due 09/18/02 (e)(f) (RUR)...... 827,120 18,038
25% due 10/09/02 (e)(f) (RUR)...... 3,357,890 70,609
25% due 01/22/03 (e)(f) (RUR)...... 1,224,560 24,883
25% due 02/05/03 (e)(f) (RUR)...... 1,409,460 28,806
25% due 05/21/03 (e)(f) (RUR)...... 836,330 16,536
25% due 06/04/03 (e)(f) (RUR)...... 950,490 18,679
25% due 06/04/03 (e)(f) (RUR)...... 742,108 14,584
25% due 09/17/03 (e)(f) (RUR)...... 516,270 10,067
25% due 10/08/03 (e)(f) (RUR)...... 347,190 6,461
Deutsche Bank Capital Corp., Mexican
Peso Linked Notes, 0% due 06/20/03
(MXP).............................. 240,577 152,642
Deutsche Bank AG, Turkey Treasury
Bill Linked Notes,
0% due 08/30/00.................... 150,000 149,697
0% due 11/30/00.................... 150,000 149,697
Russian Equity Linked Notes, 0% due
04/19/01........................... 950 64,011
Salomon Smith Barney, Inc., Brazil
Linked Notes, 6% due 04/02/03
(f)................................ 75,000 65,016
Turkey Treasury Bill Linked Notes,
10.60% due 08/11/00................ 310,000 309,374
Shoshone Partners Loan Trust, 8.25%
Sr. Notes due 04/28//02
(a)(c)(f).......................... 250,000 192,228
Standard Chartered Bank, Indian
Rupee/ Japanese Yen Linked Notes,
14.55% due 09/20/00................ 50,000 51,141
---------
Total Structured Instruments (cost: $2,268,084) 2,086,875
---------
</TABLE>
<TABLE>
<CAPTION>
Atlas Strategic Income Fund (continued)
--------------------------------------------------------------------------
contracts/
face
strike subject value
date price to call (note 1)
----- ----------- ----------- ------------
<S> <C> <C> <C> <C>
CALL OPTIONS PURCHASED - .01%
Australian Dollar Call
Option............... 07/00 0.63 (AUD) 170,000 $ 559
Mexican Nuevo Peso
Call Option.......... 09/00 9.90 (MXP) 4,000 6,800
----------
Total Call Options Purchased (cost: $4,825) 7,359
----------
</TABLE>
<TABLE>
<CAPTION>
face amount
------------
<S> <C> <C>
SHORT-TERM SECURITIES - 4.89%
Triparty Repurchase Agreement dated
June 30, 2000 with Prudential
Securities, Inc., effective yield
of 5.75%, due July 3, 2000,
collateralized by FHLMC, 7.50%,
April 1, 2028 with a value of
$3,716,351........................ $ 3,643,472 3,643,472
----------
Total Short-Term Securities (cost: $3,643,472) 3,643,472
----------
TOTAL INVESTMENTS (COST: $80,833,218) - 102.59% 76,408,693
OTHER ASSETS AND LIABILITIES, NET - (2.59)% (1,930,510)
----------
NET ASSETS - 100.00% $ 74,478,183
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas U.S. Government and Mortgage Securities Fund
--------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES - 84.52%
Federal Home Loan Mortgage Corp.
7.00% due 2023 - 2029............. $5,189,873 $ 5,024,479
7.50% due 2023 - 2024............. 10,078,161 10,002,095
8.00% due 2024 - 2026............. 4,576,882 4,611,723
8.50% due 2017 - 2026............. 1,067,848 1,090,612
9.00% due 2017 - 2024............. 2,190,734 2,254,548
9.50% due 2016 - 2021............. 450,891 470,337
10.00% due 2017 - 2020............ 44,622 46,983
10.50% due 2018 - 2020............ 58,471 62,463
Federal National Mortgage Assn.
6.50% due 2023 - 2029............. 36,494,658 34,450,140
7.00% due 2023 - 2029............. 41,386,028 39,981,521
7.50% due 2017 - 2030............. 20,947,553 20,686,442
8.00% due 2024 - 2028............. 22,112,500 22,222,523
8.50% due 2014 - 2027............. 2,993,790 3,052,620
9.00% due 2021 - 2025............. 2,552,806 2,628,456
9.50% due 2020.................... 22,068 23,122
Government National Mortgage Assn.
7.50% due 2022 - 2024............. 4,173,123 4,157,202
8.00% due 2023 - 2025............. 1,349,660 1,367,090
8.50% due 2016 - 2020............. 25,633 26,397
----------
Total U.S. Government Agencies (cost:
$156,454,143) 152,158,753
----------
</TABLE>
27
<PAGE> 28
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas U.S. Government and
Mortgage Securities Fund (continued)
--------------------------------------------------------------------
value
face amount (note 1)
----------- ------------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS - 13.01%
6.50% GNMA Floating Collateralized
Mortgage Obligation due 2020...... $6,000,000 $ 5,591,220
6.50% GNMA Floating Collateralized
Mortgage Obligation due 2025...... 3,000,000 2,762,790
6.50% FNMA Floating Collateralized
Mortgage Obligation due 2026...... 1,489,000 1,360,574
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,795,620
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,778,740
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 4,000,000 3,550,000
6.50% FHLMC Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,829,360
6.50% FNMA Floating Collateralized
Mortgage Obligation due 2028...... 3,000,000 2,633,430
6.50% GNMA Floating Collateralized
Mortgage Obligation due 2028...... 2,000,000 1,823,120
8.50% FNMA Floating Collateralized
Mortgage Obligation due 2017...... 287,854 294,060
----------
Total Collateralized Mortgage Obligations (cost:
$25,960,991) 23,418,914
----------
SHORT-TERM INVESTMENTS - 2.26%
Repurchase Agreement dated June 30,
2000 with Lehman Brothers, Inc.,
effective yield of 6.64%, due July
3, 2000 with respect to $3,725,190
GNMAs, 6.50%-12.00%, August 12,
2001-July 15, 2029 with a value of
$3,746,323 and $403,818 FNMA,
9.00%, September 15, 2008 with a
value of $414,154................. 4,075,000 4,075,000
----------
Total Short-Term Investments (cost: $4,075,000) 4,075,000
----------
TOTAL SECURITIES (COST: $186,490,134) - 99.79% 179,652,667
OTHER ASSETS AND LIABILITIES, NET - .21% 384,685
----------
NET ASSETS - 100.00% $180,037,352
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund
--------------------------------------------------------------------
value
face amount (note 1)
----------- -----------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER - 22.59%
Los Angeles, Department of Water and
Power, Electric Plant Revenue,
3.65% due 08/10/00................. $3,000,000 $ 3,000,000
3.90% due 08/10/00................. 1,000,000 1,000,000
Sacramento Municipal Utility
District, Series I, 4.15% due
08/10/00........................... 700,000 700,000
San Jose, International Airport
Authority, 4.20% due 09/06/00...... 700,000 700,000
</TABLE>
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
--------------------------------------------------------------------
value
face amount (note 1)
----------- -----------
<S> <C> <C>
State, General Obligation,
3.75% due 07/11/00................. $1,500,000 $ 1,500,000
4.30% due 07/07/00................. 2,000,000 2,000,000
---------
Total Tax-Exempt Commercial Paper (cost:
$8,900,000) 8,900,000
---------
FIXED RATE BONDS AND NOTES - 16.45%
Fremont, Unified School District,
Tax and Revenue Anticipation, 4%
due 07/28/00....................... 1,000,000 1,000,460
Kern, High School District, Tax and
Revenue Anticipation, 4.00% due
07/06/00........................... 1,500,000 1,500,120
Mt. Diablo, Unified School District,
Tax and Revenue Anticipation, 4.50%
due 01/19/01....................... 850,000 853,092
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
San Diego County, Regional
Transportation Commission Sales Tax
Revenue, Series A, FGIC Insured,
4.40% due 04/01/01................. 1,120,000 1,126,530
State Pollution Control Financing
Authority, Pollution Control
Revenue Refunding,
Chevron USA, Inc. Project, 3.80%
due 11/15/01....................... 1,000,000 999,690
Chevron USA, Inc. Project, 4.15%
due 05/15/02....................... 300,000 300,000
---------
Total Fixed Rate Bonds and Notes (cost:
$6,479,892) 6,479,892
---------
VARIABLE RATE DEMAND NOTES* - 60.32%
Alameda County, Industrial
Development Agency, Tool Family
Partnership, AMT, Series A, 4.60%
due 07/01/27....................... 900,000 900,000
Glendale, Revenue Reliance
Development, Public Parking, 4.30%
due 12/01/14....................... 500,000 500,000
Irvine Improvement Bond Act 1915,
Assessment District Number 89-10,
4.15% due 09/02/15................. 500,000 500,000
Assessment District Number 95-12,
Series A, 4.15% due 09/02/21....... 1,000,000 1,000,000
Assessment District Number 97-16,
4.15% due 09/02/22................. 1,000,000 1,000,000
Lassen Municipal Utility District,
Revenue Refunding, Series A, AMT,
FSA Insured, 4.60% due 05/01/08.... 800,000 800,000
Los Angeles, Unified School
District, COP, Belmont Learning
Complex, Series A, 4.35% due
12/01/17........................... 700,000 700,000
Los Angeles County, Metropolitan
Transportation Authority Sales Tax
Revenue, Proposition C, Series A,
MBIA Insured, 4.25% due 07/01/20... 200,000 200,000
Los Angeles County, Multi-Family
Housing Revenue, Malibu Meadows
Project-B, 4.25% due 04/15/28...... 1,500,000 1,500,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE> 29
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
--------------------------------------------------------------------
value
face amount (note 1)
----------- -----------
<S> <C> <C>
Orange County, Apartment Development
Revenue,
Aliso Creek Project-B, 4.20% due
11/1/22............................ $ 800,000 $ 800,000
Capistrano Pointe-A, 4.30% due
12/01/29........................... 1,500,000 1,500,000
Rancho Mirage, Joint Powers
Financing Authority, COP,
Eisenhower Medical Center, Series
B, MBIA Insured, 4.30% due
07/01/22........................... 1,050,000 1,050,000
San Francisco, City and County
Redevelopment Agency, Multi-Family
Revenue, Fillmore Center Project
B-1, 4.30% due 12/1/17............. 1,900,000 1,900,000
San Jacinto, Unified School
District, COP, School Facility
Board Funding Program, FSA Insured,
4.35% due 09/01/27................. 1,460,000 1,460,000
San Jose, Multi-Family Mortgage
Revenue, Somerset Park, Series A,
AMT, 4.55% due 11/01/17............ 1,600,000 1,600,000
San Leandro, Multi-Family, Carlton
Plaza Project, Series A, AMT, 4.40%
due 10/01/27....................... 1,000,000 1,000,000
Santa Paula, Public Financing
Authority Lease Revenue, Water
System Acquisition Project, 4.45%
due 02/01/26....................... 1,600,000 1,600,000
State Educational Facilities
Authority Revenue, Pomona College,
4.30% due 07/01/22................. 1,200,000 1,200,000
State Health Facilities Financing
Authority Revenue Refunding,
Scripps Hospital, Series B, MBIA
Insured, 4.30% due 10/01/21........ 1,000,000 1,000,000
State Housing Financing Agency
Revenue, Multi-Family, Series B,
4.25% due 07/15/13................. 200,000 200,000
Statewide Communities Development
Authority, Multi-Family, Sunrise of
Moraga, Series A, AMT, 4.40% due
07/01/27........................... 1,255,000 1,255,000
Statewide Communities Development
Corp. Revenue,
Florestone, AMT, 4.65% due
05/01/09........................... 695,000 695,000
Setton Properties Project, AMT,
4.65% due 10/01/10................. 700,000 700,000
Tri-Valley Industrial Development,
Series F, AMT, 4.65% due
12/01/10........................... 700,000 700,000
---------
Total Variable Rate Demand Notes (cost:
$23,760,000) 23,760,000
---------
TOTAL SECURITIES (COST: $39,139,892) - 99.36% 39,139,892
OTHER ASSETS AND LIABILITIES, NET - .64% 251,509
---------
NET ASSETS - 100.00% $39,391,401
---------
---------
</TABLE>
<TABLE>
<CAPTION>
Atlas National Municipal Money Fund
---------------------------------------------------------------------
value
face amount (note 1)
--------- --------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER - 8.10%
Harris County, Texas, Combined General
Obligation and Sub Lien, 4.20% due
08/10/00............................. $200,000 $ 200,000
Sarasota County, Florida, Public
Hospital District, Series C, 4.30%
due 10/06/00......................... 200,000 200,000
----------
Total Tax-Exempt Commercial Paper (cost: $400,000) 400,000
----------
FIXED RATE BONDS AND NOTES - 24.76%
Cass County, Indiana, Building Corp.,
MBIA Insured, 4.60% due 07/15/00..... 120,000 120,000
Chicago, Illinois, Tender Notes,
Series A, 3.90% due 01/03/02......... 100,000 100,000
Illinois, General Obligation, 4.625%
due 02/01/01......................... 100,000 100,155
Killeen, Texas, Waterworks and Sewer
Revenue, FSA Insured, 5% due
08/15/00............................. 100,000 100,118
Lake County, Indiana, General
Obligation, FSA Insured, 4.125% due
07/15/00............................. 150,000 150,015
Milwaukee, Wisconsin, General
Obligation, Series F, 5% due
11/15/00............................. 100,000 100,145
Mississippi State, Small Enterprise,
General Obligation, Series D, AMT,
7.75%, due 07/01/00.................. 155,000 155,000
Onalaska, Texas, Independent School
District, Public Schools Fund
Guaranteed, 4.60% due 02/15/01....... 155,000 155,000
Texas, Tax and Revenue Anticipation,
Series A, 4.50% due 08/31/00......... 100,000 100,130
Washington, Public Power Supply, 7%
due 07/01/12......................... 140,000 142,800
----------
Total Fixed Rate Bonds and Notes (cost: $1,223,363) 1,223,363
----------
VARIABLE RATE DEMAND NOTES* - 66.20%
Allegheny County, Pennsylvania,
Hospital Development Authority,
Presbyterian University, Series B1,
4.85% due 03/01/18................... 95,000 95,000
Allentown, Pennsylvania, Area Hospital
Authority Revenue, Sacred Heart
Hospital, Series B, 4.85% due
07/01/23............................. 200,000 200,000
Birmingham-Carraway, Alabama, Special
Care Facilities Financing Authority
Revenue, 4.60% due 08/15/28.......... 100,000 100,000
Butte-Silver Bow, Montana, Pollution
Control Revenue, Rhone-Poulenc, Inc.
Project, 4.70% due 03/01/16.......... 100,000 100,000
Florida, Housing Financing Agency,
Multi-Family Revenue Refunding, 4.75%
due 04/01/26......................... 200,000 200,000
Fort Wayne, Indiana, Hospital
Authority Revenue, Parkview Memorial
Hospital, Series D, 4.55% due
01/01/16............................. 200,000 200,000
Grand Forks, North Dakota, Health Care
Facilities Revenue, The United
Hospital Obligated Group, Series PJ,
4.55% due 12/01/16................... 100,000 100,000
</TABLE>
29
<PAGE> 30
Statements of Investments in Securities and Net Assets June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Money Fund (continued)
---------------------------------------------------------------------
value
face amount (note 1)
--------- --------
<S> <C> <C>
Grapevine, Texas, Industrial
Development Corp. Revenue, Multiple
Mode, American Airlines,
Series B2, 4.55% due 12/01/24........ $200,000 $ 200,000
Series B3, 4.55% due 12/01/24........ 200,000 200,000
Illinois, Health Facilities Financing
Authority Revenue,
Ingalls Memorial Hospital, Series C,
4.65% due 01/01/16................... 200,000 200,000
Rush Presbyterian, St. Luke's
Medical, Series 89A, 4.75% due
10/01/10............................. 200,000 200,000
Indiana, Health Facility Authority
Revenue, Capital Access '91, 4.65%
due 08/01/06......................... 100,000 100,000
Lone Star, Texas, Airport Improvement
Authority, Multiple Mode, Series A-4,
4.55% due 12/01/14................... 200,000 200,000
Montana, Health Facilities Authority
Revenue, Health Care Pooled Loan
Program, Series A, FGIC Insured,
4.75% due 12/01/20................... 100,000 100,000
Morgan County, Utah, Solid Waste
Disposal Revenue, Holnam, Inc.
Project, AMT, 4.80% due 08/01/31..... 100,000 100,000
North Central, Texas, Health
Facilities Development Corp. Revenue,
Presbyterian Medical Center, MBIA
Insured, Series C, 4.55% due
12/01/15............................. 100,000 100,000
Sullivan County, Tennessee, Industrial
Development Board, Pollution Control
Revenue, Mead Corp. Project, 4.45%
due 10/01/16......................... 100,000 100,000
Sunshine, Florida, Governmental
Financing Commission Revenue, AMBAC
Insured, 4.70% due 07/01/16.......... 200,000 200,000
University of South Florida
Foundation, Inc., COP, 4.85% due
01/01/29............................. 100,000 100,000
Winston-Salem, North Carolina, COP,
Risk Acceptance Management Corp.,
4.70% due 07/01/09................... 175,000 175,000
Wisconsin, Health and Educational
Facilities Authority Revenue, Wheaton
Franciscan Services, 4.90% due
08/15/16............................. 100,000 100,000
Wisconsin, Health Facilities Authority
Revenue, Franciscan Health Care,
Series A-1, 4.60% due 01/01/16....... 200,000 200,000
--------
Total Variable Rate Demand Notes (cost: $3,270,000) 3,270,000
--------
TOTAL SECURITIES (COST: $4,893,363) - 99.06% 4,893,363
OTHER ASSETS AND LIABILITIES, NET - .94% 46,174
--------
NET ASSETS - 100.00% $4,939,537
--------
--------
</TABLE>
<TABLE>
<CAPTION>
Atlas U.S. Treasury Money Fund
--------------------------------------------------------------------
value
face amount (note 1)
----------- -----------
<S> <C> <C>
UNITED STATES TREASURY BILLS - 36.52%
5.40% - 6.03% due
07/20/00 - 10/19/00............. $22,833,000 $22,614,388
---------
Total United States Treasury Bills (cost:
$22,614,388) 22,614,388
---------
UNITED STATES TREASURY NOTES - 62.48%
5.38% - 6.25% due
07/31/00 - 10/31/00............... 38,000,000 38,694,078
---------
Total United States Treasury Notes (cost:
$38,694,078) 38,694,078
---------
TOTAL SECURITIES (COST: $61,308,466) - 99.00% 61,308,466
OTHER ASSETS AND LIABILITIES, NET - 1.00% 617,030
---------
NET ASSETS - 100.00% $61,925,496
---------
---------
</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
June 30, 2000, the value of these securities amounted to $316,680 or 0.23%
of net assets in the Global Growth Fund, $3,193,750 or 0.65% of net assets
in the Growth and Income Fund, and $4,769,213 or 6.40% 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>
ARP - Argentine Peso HUF - Hungarian Forint
BRA - Brazilian Real JPY - Japanese Yen
CAD - Canadian Dollar MXP - Mexican Nuevo Peso
DEM - German Deutsche Mark NOK - Norwegian Krone
EUR - Euro NZD - New Zealand Dollar
FRF - French Franc PLZ - Polish Zloty
GBP - British Pound Sterling RUR - Russian Ruble
GRD - Greek Drachma SEK - Swedish Krona
</TABLE>
(k) Securities with an aggregate market value of $223,226 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.
The accompanying notes are an integral part of these financial statements.
30
<PAGE> 31
--------------------------------------------------------------------------------
(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 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:
-------------------
Venezuela (Republic of) Bonds, 9.25% due 9/15/27
Call Option 90 9/7/2000 $68 $1,296 $900
-------------------
-------------------
</TABLE>
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
31
<PAGE> 32
Statements of Assets and Liabilities June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
----------------------------------------------------------------------------------------------
Emerging Global Growth and Strategic
Balanced Growth Growth Income Growth
Fund Fund Fund Fund Fund
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in securities, at
identified cost............ $62,569,530 $24,736,405 $111,593,349 $347,825,166 $131,328,792
--------- --------- ---------- ---------- ----------
--------- --------- ---------- ---------- ----------
Investment in securities, at
value...................... $65,889,461 $29,044,278 $134,908,188 $490,624,055 $173,110,493
Cash......................... 0 0 616,961 0 0
Receivables:
Securities sold............ 1,103,578 45,311 1,502,897 1,806,814 0
Fund's shares sold......... 33,381 50,668 405,041 468,021 395,310
Interest and dividends..... 201,394 3,934 116,911 387,999 29,028
Other...................... 0 0 33,186 0 0
Variation margin on futures
contracts.................. 0 0 0 0 0
--------- --------- ---------- ---------- ----------
Total assets................. 67,227,814 29,144,191 137,583,184 493,286,889 173,534,831
--------- --------- ---------- ---------- ----------
LIABILITIES:
Payables for:
Securities purchased....... 10,546,284 0 2,062,527 0 0
Fund's shares redeemed..... 56,762 85,363 26,855 286,403 2,836
Dividends.................. 9,240 0 0 29,073 0
Accrued expenses............. 87,392 41,800 195,857 616,345 220,300
Options written, at value
(premiums received
$1,296).................... 0 0 0 0 0
Unrealized depreciation on
forward foreign exchange
currency contracts (Note
7)........................... 0 0 2,446 0 0
--------- --------- ---------- ---------- ----------
Total liabilities............ 10,699,678 127,163 2,287,685 931,821 223,136
--------- --------- ---------- ---------- ----------
NET ASSETS..................... $56,528,136 $29,017,028 $135,295,499 $492,355,068 $173,311,695
--------- --------- ---------- ---------- ----------
--------- --------- ---------- ---------- ----------
NET ASSETS CONSIST OF:
Net unrealized appreciation
(depreciation)............. $ 3,319,931 $ 4,307,873 $ 23,314,548 $142,798,889 $ 41,781,701
Accumulated net realized gain
(loss)..................... (5,300,623) (463,446) 7,289,626 8,838,788 3,634,609
Undistributed net investment
income (loss).............. 123 (450,279) 289,600 1,726 (310,283)
Paid in capital.............. 58,508,705 25,622,880 104,401,725 340,715,665 128,205,668
--------- --------- ---------- ---------- ----------
NET ASSETS..................... $56,528,136 $29,017,028 $135,295,499 $492,355,068 $173,311,695
--------- --------- ---------- ---------- ----------
--------- --------- ---------- ---------- ----------
NET ASSET VALUE PER SHARE:
Class A
Net Assets................. $50,872,978 $27,030,823 $125,777,387 $468,932,929 $157,468,174
Shares outstanding......... 4,083,071 1,539,554 5,971,489 16,800,327 6,678,574
Net asset value per share
and maximum offering
price...................... $ 12.46 $ 17.56 $ 21.06 $ 27.91 $ 23.58
Class B
Net Assets................. $ 5,655,158 $ 1,986,205 $ 9,518,112 $ 23,422,139 $ 15,843,521
Shares outstanding......... 455,908 115,608 464,596 843,687 686,775
Net asset value per share
and maximum offering
price...................... $ 12.40 $ 17.18 $ 20.49 $ 27.76 $ 23.07
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.
32
<PAGE> 33
--------------------------------------------------------------------------------
<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>
$192,720,377 $50,255,984 $80,833,218 $186,490,134 $ 39,139,892 $ 4,893,363 $ 61,308,466
---------- --------- --------- ------------ ---------- ---------- -----------
---------- --------- --------- ------------ ---------- ---------- -----------
$193,910,956 $50,258,181 $76,408,693 $179,652,667 $ 39,139,892 $ 4,893,363 $ 61,308,466
65,945 34,699 14,007 370 763 6,453 2,201
15,000 102,000 1,208,812 0 0 0 0
100,815 50,000 227,938 17,157 22,916 0 819,584
3,491,540 757,946 1,356,065 1,102,351 269,346 43,263 0
0 0 25 28,756 0 0 0
0 0 3,590 0 0 0 0
---------- --------- --------- ------------ ---------- ---------- -----------
197,584,256 51,202,826 79,219,130 180,801,301 39,432,917 4,943,079 62,130,251
---------- --------- --------- ------------ ---------- ---------- -----------
0 0 4,303,830 0 0 0 0
151,892 13,261 12,925 191,903 16,210 0 160,319
254,016 55,188 280,696 338,212 4,586 719 9,871
231,779 63,753 116,204 233,834 20,720 2,823 34,565
0 0 900 0 0 0 0
0 0 26,392 0 0 0 0
---------- --------- --------- ------------ ---------- ---------- -----------
637,687 132,202 4,740,947 763,949 41,516 3,542 204,755
---------- --------- --------- ------------ ---------- ---------- -----------
$196,946,569 $51,070,624 $74,478,183 $180,037,352 $ 39,391,401 $ 4,939,537 $ 61,925,496
---------- --------- --------- ------------ ---------- ---------- -----------
---------- --------- --------- ------------ ---------- ---------- -----------
$ 1,190,579 $ 2,197 $(4,352,473) $ (6,837,467) $ 0 $ 0 $ 0
(481,540) (724,222) (4,634,468) (16,573,762) (85) (377) (26,886)
0 0 84,173 0 0 0 0
196,237,530 51,792,649 83,380,951 203,448,581 39,391,486 4,939,914 61,952,382
---------- --------- --------- ------------ ---------- ---------- -----------
$196,946,569 $51,070,624 $74,478,183 $180,037,352 $ 39,391,401 $ 4,939,537 $ 61,925,496
---------- --------- --------- ------------ ---------- ---------- -----------
---------- --------- --------- ------------ ---------- ---------- -----------
$191,929,213 $49,482,218 $69,542,010 $176,214,441 $ 39,391,401 $ 4,939,537 $ 61,366,441
17,880,051 4,647,673 15,327,798 18,341,207 39,391,486 4,939,914 61,393,232
$ 10.73 $ 10.65 $ 4.54 $ 9.61 $ 1.00 $ 1.00 $ 1.00
$ 5,017,356 $ 1,588,406 $ 4,936,173 $ 3,822,911 NA NA $ 559,055
467,141 149,109 1,089,671 397,888 NA NA 559,150
$ 10.74 $ 10.65 $ 4.53 $ 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>
33
<PAGE> 34
Statements of Operations For the six months ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
-------------------------------------------------------------------------------------------
Emerging Global Growth and Strategic
Balanced Growth Growth Income Growth
Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest...................... $ 697,962 $ 106,017 $ 342,239 $ 2,661,550 $ 566,862
Dividends..................... 439,063 2,694 678,971 1,773,512 92,846
--------- --------- --------- --------- ---------
Total income.................... 1,137,025 108,711 1,021,210 4,435,062 659,708
--------- --------- --------- --------- ---------
Expenses:
Management fees............... 223,415 105,599 449,119 1,439,436 485,760
Distribution fees:
Class A..................... 71,883 30,443 130,064 549,654 162,376
Class B..................... 23,723 7,669 34,829 88,173 57,914
Transfer agency fees and
expenses.................... 51,459 38,084 73,729 209,176 81,877
Custodian fees and expenses... 22,144 31,626 76,655 95,097 32,938
Directors' fees............... 1,334 551 2,362 9,670 3,029
Registration fees............. 3,363 3,942 8,678 11,073 7,905
Accounting and legal fees..... 8,078 7,615 8,683 12,994 9,077
Reports to shareholders....... 5,863 4,352 10,276 29,237 11,939
Other......................... 1,380 571 2,448 6,150 2,862
--------- --------- --------- --------- ---------
Total expenses.............. 412,642 230,452 796,843 2,450,660 855,677
Management fees waived:
Class A..................... 0 0 0 0 0
Class B..................... 0 0 0 0 0
Distribution fees waived:
Class A..................... 0 (15,930) 0 0 0
Class B..................... 0 0 0 0 0
Expense reimbursement:
Class A..................... 0 0 0 0 0
Class B..................... (4,794) (5,442) (2,034) (2,106) (573)
--------- --------- --------- --------- ---------
Net expenses.................... 407,848 209,080 794,809 2,448,554 855,104
--------- --------- --------- --------- ---------
Net investment income (loss).... 729,177 (100,369) 226,401 1,986,508 (195,396)
--------- --------- --------- --------- ---------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY:
Realized gain (loss) from:
Security transactions
(including premiums on options
exercised).................... (5,300,722) (618,390) 7,988,748 8,787,150 3,585,202
Closing of futures
contracts................... 0 0 0 0 0
Closing and expiration of
options written............. 0 0 0 0 0
Foreign currency
transactions................ (308) (560) (111,251) 0 0
--------- --------- --------- --------- ---------
Net realized gain (loss) on
investments and foreign
currency........................ (5,301,030) (618,950) 7,877,497 8,787,150 3,585,202
--------- --------- --------- --------- ---------
Unrealized appreciation
(depreciation):
Beginning of period........... 1,000,161 6,182,903 23,247,267 129,438,089 26,069,248
End of period................. 3,319,931 4,307,873 23,314,548 142,798,889 41,781,701
--------- --------- --------- --------- ---------
Net change in unrealized
appreciation (depreciation) on
investments and foreign
currency........................ 2,319,770 (1,875,030) 67,281 13,360,800 15,712,453
--------- --------- --------- --------- ---------
Net realized and unrealized gain
(loss) on investments and
foreign currency................ (2,981,260) (2,493,980) 7,944,778 22,147,950 19,297,655
--------- --------- --------- --------- ---------
Net increase (decrease) in net
assets resulting from
operations...................... $(2,252,083) $(2,594,349) $ 8,171,179 $24,134,458 $19,102,259
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE> 35
--------------------------------------------------------------------------------
<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>
$ 5,708,890 $1,554,021 $ 3,579,304 $ 6,983,638 $672,805 $ 92,909 $1,591,817
0 0 69,984 0 0 0 0
--------- -------- --------- ----------- -------- ------- ----------
5,708,890 1,554,021 3,649,288 6,983,638 672,805 92,909 1,591,817
--------- -------- --------- ----------- -------- ------- ----------
538,899 142,992 274,807 518,598 97,111 11,552 141,379
238,521 62,872 85,255 230,519 48,555 5,777 70,014
19,298 6,373 19,041 15,624 NA NA 2,027
60,846 26,667 45,827 109,423 12,990 3,226 54,532
46,783 18,816 70,546 88,323 12,920 3,980 13,649
4,093 1,086 1,531 3,941 811 97 1,180
2,606 3,255 4,161 4,819 1,058 2,659 3,586
9,706 7,932 11,603 9,616 7,223 6,802 7,987
5,861 2,049 4,201 10,411 1,321 302 4,769
6,586 3,884 1,584 11,525 1,421 169 1,502
--------- -------- --------- ----------- -------- ------- ----------
933,199 275,926 518,556 1,002,799 183,410 34,564 300,625
0 0 0 0 (12,497) (11,554) (28,819)
0 0 0 0 NA NA (277)
0 0 0 0 (48,555) (5,777) (70,014)
0 0 0 0 NA NA 0
0 0 0 0 0 (827) 0
(7,251) (7,264) (6,586) (7,009) NA NA (7,212)
--------- -------- --------- ----------- -------- ------- ----------
925,948 268,662 511,970 995,790 122,358 16,406 194,303
--------- -------- --------- ----------- -------- ------- ----------
4,782,942 1,285,359 3,137,318 5,987,848 550,447 76,503 1,397,514
--------- -------- --------- ----------- -------- ------- ----------
50,877 37,028 (2,096,199) (1,507,548) 0 0 (1,634)
0 0 (12,918) 0 0 0 0
0 0 (6,929) 0 0 0 0
0 0 (104,685) 0 0 0 0
--------- -------- --------- ----------- -------- ------- ----------
50,877 37,028 (2,220,731) (1,507,548) 0 0 (1,634)
--------- -------- --------- ----------- -------- ------- ----------
(3,434,275) (634,409) (4,435,668) (8,164,155) 0 0 0
1,190,579 2,197 (4,352,473) (6,837,467) 0 0 0
--------- -------- --------- ----------- -------- ------- ----------
4,624,854 636,606 83,195 1,326,688 0 0 0
--------- -------- --------- ----------- -------- ------- ----------
4,675,731 673,634 (2,137,536) (180,860) 0 0 (1,634)
--------- -------- --------- ----------- -------- ------- ----------
$ 9,458,673 $1,958,993 $ 999,782 $ 5,806,988 $550,447 $ 76,503 $1,395,880
--------- -------- --------- ----------- -------- ------- ----------
--------- -------- --------- ----------- -------- ------- ----------
</TABLE>
35
<PAGE> 36
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
----------------------------------------------------------------
Balanced Fund Emerging Growth Fund
----------------------------------------------------------------
2000(1) 1999(2) 2000(1) 1999(2)
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss).......... $ 729,177 $ 3,075,700 $ (100,369) $ (184,217)
Net realized gain (loss) on
investments and foreign currency...... (5,301,030) 1,799,082 (618,950) 2,405,133
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency...................... 2,319,770 (9,760,436) (1,875,030) 3,566,759
---------- ---------- --------- ---------
Net increase (decrease) in net assets
resulting from operations............. (2,252,083) (4,885,654) (2,594,349) 5,787,675
---------- ---------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A............................. (671,114) (2,814,255) 0 0
Class B............................. (58,024) (261,528) 0 0
Tax return of capital:
Class A............................. 0 0 0 0
Class B............................. 0 0 0 0
From net realized gain:
Class A............................. (463) (1,622,901) 0 (829,220)
Class B............................. 0 (175,980) 0 (84,428)
In excess of net realized gain on
investments:
Class A............................. 0 0 0 0
Class B............................. 0 0 0 0
---------- ---------- --------- ---------
Total distributions:
Class A............................. (671,577) (4,437,156) 0 (829,220)
Class B............................. (58,024) (437,508) 0 (84,428)
---------- ---------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A............................. 4,612,938 22,687,245 12,121,053 3,679,935
Class B............................. 40,068 240,048 372,923 104,260
Reinvestment of distributions:
Class A............................. 643,746 4,281,806 0 731,653
Class B............................. 51,819 404,505 0 83,628
Cost of shares redeemed:
Class A............................. (25,065,301) (33,217,461) (2,242,256) (6,043,303)
Class B............................. (2,041,255) (1,937,618) (154,814) (732,436)
---------- ---------- --------- ---------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A............................. (19,808,617) (6,248,410) 9,878,797 (1,631,715)
Class B............................. (1,949,368) (1,293,065) 218,109 (544,548)
---------- ---------- --------- ---------
Net increase (decrease) in net
assets................................ (24,739,669) (17,301,793) 7,502,557 2,697,764
NET ASSETS:
Beginning of period................... 81,267,805 98,569,598 21,514,471 18,816,707
---------- ---------- --------- ---------
End of period......................... $ 56,528,136 $ 81,267,805 $29,017,028 $21,514,471
---------- ---------- --------- ---------
---------- ---------- --------- ---------
<CAPTION>
Stock Funds
-------------------------------------
Global Growth Fund
-------------------------------------
2000(1) 1999(2)
(unaudited)
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss).......... $ 226,401 $ 67,067
Net realized gain (loss) on
investments and foreign currency...... 7,877,497 12,014,812
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency...................... 67,281 14,154,268
---------- ----------
Net increase (decrease) in net assets
resulting from operations............. 8,171,179 26,236,147
---------- ----------
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............................. (14,883) (10,542,628)
Class B............................. 0 (1,298,105)
In excess of net realized gain on
investments:
Class A............................. 0 0
Class B............................. 0 0
---------- ----------
Total distributions:
Class A............................. (14,883) (10,542,628)
Class B............................. 0 (1,298,105)
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A............................. 54,075,374 18,101,415
Class B............................. 869,554 259,545
Reinvestment of distributions:
Class A............................. 14,883 10,476,846
Class B............................. 0 1,286,005
Cost of shares redeemed:
Class A............................. (5,982,318) (7,472,646)
Class B............................. (572,985) (877,257)
---------- ----------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A............................. 48,107,939 21,105,615
Class B............................. 296,569 668,293
---------- ----------
Net increase (decrease) in net
assets................................ 56,560,804 36,169,322
NET ASSETS:
Beginning of period................... 78,734,695 42,565,373
---------- ----------
End of period......................... $135,295,499 $ 78,734,695
---------- ----------
---------- ----------
</TABLE>
(1) For the six months ended June 30, 2000.
(2) For the year ended December 31, 1999.
The accompanying notes are an integral part of these financial statements.
36
<PAGE> 37
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
---------------------------------------------------------------------------------------------------------------------
Growth and Income Fund Strategic Growth Fund California Municipal Bond Fund
---------------------------------------------------------------------------------------------------------------------
2000(1) 1999(2) 2000(1) 1999(2) 2000(1) 1999(2)
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
$ 1,986,508 $ 1,858,878 $ (195,396) $ (113,721) $ 4,782,942 $ 9,964,390
8,787,150 35,003,101 3,585,202 17,416,509 50,877 (538,999)
13,360,800 61,597,860 15,712,453 15,342,472 4,624,854 (19,330,414)
---------- ---------- ---------- ---------- ---------- ----------
24,134,458 98,459,839 19,102,259 32,645,260 9,458,673 (9,905,023)
---------- ---------- ---------- ---------- ---------- ----------
(1,943,402) (1,834,528) 0 0 (4,669,989) (9,665,400)
(41,671) (24,044) 0 0 (112,953) (298,990)
0 0 0 0 0 0
0 0 0 0 0 0
(11,389) (32,874,252) (13,681) (14,687,199) 0 0
0 (1,893,994) 0 (2,129,426) 0 0
0 0 0 0 0 0
0 0 0 0 0 0
---------- ---------- ---------- ---------- ---------- ----------
(1,954,791) (34,708,780) (13,681) (14,687,199) (4,669,989) (9,665,400)
(41,671) (1,918,038) 0 (2,129,426) (112,953) (298,990)
---------- ---------- ---------- ---------- ---------- ----------
66,857,945 107,995,479 45,939,270 18,311,954 9,113,964 35,340,518
1,170,439 1,724,617 994,809 203,019 263,252 534,455
1,908,875 34,076,335 13,681 14,549,718 3,141,712 6,730,296
40,004 1,850,779 0 2,107,751 71,133 201,703
(31,577,026) (37,741,015) (7,889,191) (17,735,288) (23,288,018) (36,399,218)
(2,375,243) (5,103,625) (1,822,097) (2,532,213) (1,287,099) (2,202,981)
---------- ---------- ---------- ---------- ---------- ----------
37,189,794 104,330,799 38,063,760 15,126,384 (11,032,342) 5,671,596
(1,164,800) (1,528,229) (827,288) (221,443) (952,714) (1,466,823)
---------- ---------- ---------- ---------- ---------- ----------
58,162,990 164,635,591 56,325,050 30,733,576 (7,309,325) (15,664,640)
434,192,078 269,556,487 116,986,645 86,253,069 204,255,894 219,920,534
---------- ---------- ---------- ---------- ---------- ----------
$492,355,068 $434,192,078 $173,311,695 $116,986,645 $196,946,569 $204,255,894
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
<CAPTION>
Bond Funds
------------------------------
National Municipal Bond
Fund
------------------------------
2000(1) 1999(2)
(unaudited)
<S> <C> <C> <C>
$ 1,285,359 $ 2,882,012
37,028 (786,965)
636,606 (5,186,159)
--------- ----------
1,958,993 (3,091,112)
--------- ----------
(1,247,536) (2,764,990)
(37,823) (117,022)
0 0
0 0
0 0
0 0
0 0
0 0
--------- ----------
(1,247,536) (2,764,990)
(37,823) (117,022)
--------- ----------
2,010,353 7,263,711
97,755 67,933
906,293 2,065,907
32,915 104,652
(8,384,826) (11,885,385)
(719,331) (991,406)
--------- ----------
(5,468,180) (2,555,767)
(588,661) (818,821)
--------- ----------
(5,383,207) (9,347,712)
56,453,831 65,801,543
--------- ----------
$51,070,624 $ 56,453,831
--------- ----------
--------- ----------
</TABLE>
37
<PAGE> 38
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
------------------------------------------------------------------
U.S. Government and
Strategic Income Fund Mortgage Securities Fund
------------------------------------------------------------------
2000(1) 1999(2) 2000(1) 1999(2)
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss)......... $ 3,137,318 $ 5,917,030 $ 5,987,848 $ 13,470,170
Net realized gain (loss) on
investments and foreign currency..... (2,220,731) (1,920,369) (1,507,548) (432,240)
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency..................... 83,195 (2,644,272) 1,326,688 (12,262,709)
---------- ---------- ---------- ----------
Net increase in net assets resulting
from operations...................... 999,782 1,352,389 5,806,988 775,221
---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A............................ (2,931,637) (5,282,299) (5,865,778) (13,135,424)
Class B............................ (205,681) (448,447) (122,070) (334,746)
Tax return of capital:
Class A............................ 0 (116,459) 0 0
Class B............................ 0 (9,885) 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 0 0 0
Class B............................ 0 0 0 0
---------- ---------- ---------- ----------
Total distributions:
Class A............................ (2,931,637) (5,398,758) (5,865,778) (13,135,424)
Class B............................ (205,681) (458,332) (122,070) (334,746)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A............................ 16,868,909 26,590,070 7,103,569 53,886,742
Class B............................ 163,969 171,454 36,125 201,667
Reinvestment of distributions:
Class A............................ 1,237,423 2,630,076 3,724,876 8,538,321
Class B............................ 103,892 252,032 80,600 233,826
Cost of shares redeemed:
Class A............................ (13,794,201) (24,271,854) (37,402,680) (63,452,218)
Class B............................ (467,729) (1,943,379) (1,072,989) (2,112,512)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A............................ 4,312,131 4,948,292 (26,574,235) (1,027,155)
Class B............................ (199,868) (1,519,893) (956,264) (1,677,019)
---------- ---------- ---------- ----------
Net increase (decrease) in net
assets............................... 1,974,727 (1,076,302) (27,711,359) (15,399,123)
NET ASSETS:
Beginning of period.................. 72,503,456 73,579,758 207,748,711 223,147,834
---------- ---------- ---------- ----------
End of period........................ $ 74,478,183 $ 72,503,456 $180,037,352 $207,748,711
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
<CAPTION>
Money Funds
-------------------------------------
California Municipal
Money Fund
-------------------------------------
2000(1) 1999(2)
(unaudited)
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income (loss)......... $ 550,447 $ 943,575
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...................... 550,447 943,575
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A............................ (550,447) (943,575)
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............................ (550,447) (943,575)
Class B............................ NA NA
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Class A............................ 13,979,358 27,193,098
Class B............................ NA NA
Reinvestment of distributions:
Class A............................ 524,208 905,689
Class B............................ NA NA
Cost of shares redeemed:
Class A............................ (14,428,661) (29,265,777)
Class B............................ NA NA
---------- ----------
Net increase (decrease) in net assets
resulting from capital share
transactions:
Class A............................ 74,905 (1,166,990)
Class B............................ NA NA
---------- ----------
Net increase (decrease) in net
assets............................... 74,905 (1,166,990)
NET ASSETS:
Beginning of period.................. 39,316,496 40,483,486
---------- ----------
End of period........................ $ 39,391,401 $ 39,316,496
---------- ----------
---------- ----------
</TABLE>
(1) For the six months ended June 30, 2000.
(2) For the year ended December 31, 1999.
The accompanying notes are an integral part of these financial statements.
38
<PAGE> 39
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------------------
National Municipal
Money Fund U.S. Treasury Money Fund
-------------------------------------------------------------------
2000(1) 1999(2) 2000(1) 1999(2)
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
$ 76,503 $ 141,402 $ 1,397,514 $ 2,206,390
0 0 (1,634) (1,108)
0 0 0 0
--------- --------- ---------- ----------
76,503 141,402 1,395,880 2,205,282
--------- --------- ---------- ----------
(76,503) (141,402) (1,386,154) (2,187,656)
NA NA (11,360) (18,734)
0 0 0 0
NA NA 0 0
0 0 0 0
NA NA 0 0
0 0 0 0
NA NA 0 0
--------- --------- ---------- ----------
(76,503) (141,402) (1,386,154) (2,187,656)
NA NA (11,360) (18,734)
--------- --------- ---------- ----------
2,225,215 3,134,507 34,869,394 43,976,388
NA NA 688,143 634,612
72,920 135,153 1,307,032 2,076,614
NA NA 10,479 18,729
(1,863,686) (4,229,068) (30,700,338) (48,346,071)
NA NA (668,529) (665,542)
--------- --------- ---------- ----------
434,449 (959,408) 5,476,088 (2,293,069)
NA NA 30,093 (12,201)
--------- --------- ---------- ----------
434,449 (959,408) 5,504,547 (2,306,378)
4,505,088 5,464,496 56,420,949 58,727,327
--------- --------- ---------- ----------
$ 4,939,537 $ 4,505,088 $ 61,925,496 $ 56,420,949
--------- --------- ---------- ----------
--------- --------- ---------- ----------
</TABLE>
39
<PAGE> 40
Financial Highlights selected data for a share outstanding throughout each
period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
---------------------------------------------------------------------------------------
Balanced Fund
Class A Class B
---------------------------------------------------------------------------------------
June 30, June 30,
2000(1) 1999 1998 1997 1996 1995 2000(1) 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................ $ 12.96 $ 14.47 $ 14.14 $ 12.18 $ 11.19 $ 9.23 $12.91 $ 14.41 $ 14.09
----- ----- ----- ----- ----- ----- ----- ----- -----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ 0.15 0.48 0.46 0.46 0.42 0.42 0.12 0.41 0.41
Net realized and unrealized
gain on investments........... (0.50) (1.21) 0.75 2.27 1.32 2.02 (0.51) (1.20) 0.72
----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations.................... (0.35) (0.73) 1.21 2.73 1.74 2.44 (0.39) (0.79) 1.13
----- ----- ----- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS:
From net investment income.... (0.15) (0.48) (0.46) (0.46) (0.42) (0.42) (0.12) (0.41) (0.39)
From net capital gains........ 0.00 (0.30) (0.42) (0.31) (0.33) (0.06) 0.00 (0.30) (0.42)
In excess of realized gains... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tax return of capital
distribution.................. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions........... (0.15) (0.78) (0.88) (0.77) (0.75) (0.48) (0.12) (0.71) (0.81)
----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value, end of
period........................ $ 12.46 $ 12.96 $ 14.47 $ 14.14 $ 12.18 $ 11.19 $12.40 $ 12.91 $ 14.41
----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- -----
Total return(3)................ -2.70% -5.20% 8.63% 22.72% 15.81% 26.76% -3.04% -5.64% 8.04%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $50,873 $73,365 $88,430 $49,456 $29,289 $13,547 $5,655 $ 7,903 $10,139
Ratio of expenses to average
net assets:(4)
Before expense waivers and
reimbursement............... 1.23% 1.15% 1.16% 1.20% 1.28% 1.53% 1.88% 1.74% 1.76%
After expense waivers and
reimbursement............... 1.23% 1.15% 1.16% 1.20% 1.28% 1.48% 1.73% 1.64% 1.66%
Ratio of net investment income
to average net assets(4)...... 2.33% 3.30% 3.28% 3.58% 3.86% 4.15% 1.84% 2.80% 2.77%
Portfolio turnover rate....... 171.00% 51.94% 33.62% 14.71% 41.41% 25.84% 171.00% 51.94% 33.62%
<CAPTION>
Stock Funds
----------------------------
Class B
----------------------------
June 30,
1997 1996 1995
<S> <C> <C> <C> <C>
Net asset value, beginning of
period........................ $12.15 $11.17 $ 9.22
---- ---- ----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ 0.39 0.36 0.35
Net realized and unrealized
gain on investments........... 2.26 1.32 2.03
---- ---- ----
Total from investment
operations.................... 2.65 1.68 2.38
---- ---- ----
LESS DISTRIBUTIONS:
From net investment income.... (0.40) (0.37) (0.37)
From net capital gains........ (0.31) (0.33) (0.06)
In excess of realized gains... 0.00 0.00 0.00
Tax return of capital
distribution.................. 0.00 0.00 0.00
---- ---- ----
Total distributions........... (0.71) (0.70) (0.43)
---- ---- ----
Net asset value, end of
period........................ $14.09 $12.15 $11.17
---- ---- ----
---- ---- ----
Total return(3)................ 22.05% 15.25% 26.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $9,552 $4,802 $1,632
Ratio of expenses to average
net assets:(4)
Before expense waivers and
reimbursement............... 1.91% 2.21% 3.25%
After expense waivers and
reimbursement............... 1.69% 1.77% 1.99%
Ratio of net investment income
to average net assets(4)...... 3.07% 3.37% 3.66%
Portfolio turnover rate....... 14.71% 41.41% 25.84%
</TABLE>
(1) Unaudited.
(2) Commencement of operations.
(3) Total returns assume purchase at net asset value (without sales charge) at
the beginning of each period. Returns for periods less than a full year are
aggregate (non-annualized) returns.
(4) Annualized when the period presented is less than one year.
The accompanying notes are an integral part of these financial statements.
40
<PAGE> 41
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Emerging Growth Fund
Class A Class B
----------------------------------------------------------------------------------------------------------------------
April 30, 1997(2) April 30, 1997(2)
June 30, through June 30, through
2000(1) 1999 1998 Dec. 31, 1997 2000(1) 1999 1998 Dec. 31, 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 18.79 $ 13.75 $ 13.00 $ 10.00 $18.44 $13.60 $12.93 $ 10.00
------- ----- ----- ----- ------- ---- ---- -----
(0.07) (0.15) (0.09) (0.05) (0.12) (0.23) (0.17) (0.12)
(1.16) 6.02 0.84 3.05 (1.14) 5.90 0.84 3.05
------- ----- ----- ----- ------- ---- ---- -----
(1.23) 5.87 0.75 3.00 (1.26) 5.67 0.67 2.93
------- ----- ----- ----- ------- ---- ---- -----
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 (0.83) 0.00 0.00 0.00 (0.83) 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 (0.83) 0.00 0.00 0.00 (0.83) 0.00 0.00
------- ----- ----- ------ ------- ---- ---- -----
$ 17.56 $ 18.79 $ 13.75 $ 13.00 $17.18 $18.44 $13.60 $ 12.93
------- ----- ----- ------ ------- ---- ---- -----
------- ----- ----- ------ ------- ---- ---- -----
-6.55% 42.68% 5.77% 30.00% -6.83% 41.68% 5.18% 29.30%
$27,031 $19,551 $16,747 $ 10,028 $1,986 $1,963 $2,070 $ 2,235
%
1.66 1.74% 1.59% 1.88% 2.62% 2.98% 2.62% 3.25%
%
1.53 1.53% 1.49% 1.49% 2.09% 2.16% 2.08% 2.23%
%
-0.71 -1.14% -0.68% -0.59% -1.28% -1.78% -1.27% -1.35%
56.84% 184.32% 106.24% 17.06% 56.84% 184.32% 106.24% 17.06%
</TABLE>
41
<PAGE> 42
Financial Highlights selected data for a share outstanding throughout each
period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
------------------------------------------------------------------------------------------------
Global Growth Fund
Class A Class B
------------------------------------------------------------------------------------------------
April 30, 1996(2)
June 30, through June 30,
2000(1) 1999 1998 1997 Dec. 31, 1996 2000(1) 1999 1998 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................ $ 19.28 $ 14.56 $ 12.69 $ 10.96 $ 10.14 $18.79 $14.32 $12.55 $10.91
------ ----- ----- ----- ------ ----- ---- ---- ----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ 0.05 0.03 0.00 0.02 0.01 (0.01) (0.05) (0.06) (0.05)
Net realized and unrealized
gain on investments........... 1.73 8.10 2.21 2.65 1.10 1.71 7.93 2.17 2.63
------ ----- ----- ----- ------ ----- ---- ---- ----
Total from investment
operations.................... 1.78 8.13 2.21 2.67 1.11 1.70 7.88 2.11 2.58
------ ----- ----- ----- ------ ----- ---- ---- ----
LESS DISTRIBUTIONS:
From net investment income.... 0.00 0.00 0.00 0.00 (0.01) 0.00 0.00 0.00 0.00
From net capital gains........ 0.00 (3.41) (0.18) (0.84) (0.27) 0.00 (3.41) (0.18) (0.84)
In excess of realized gains... 0.00 0.00 (0.16) (0.10) (0.01) 0.00 0.00 (0.16) (0.10)
Tax return of capital
distribution.................. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------ ----- ----- ----- ------ ----- ---- ---- ----
Total distributions........... 0.00 (3.41) (0.34) (0.94) (0.29) 0.00 (3.41) (0.34) (0.94)
------ ----- ----- ----- ------ ----- ---- ---- ----
Net asset value, end of
period........................ $ 21.06 $ 19.28 $ 14.56 $ 12.69 $ 10.96 $20.49 $18.79 $14.32 $12.55
------ ----- ----- ----- ------ ----- ---- ---- ----
------ ----- ----- ----- ------ ----- ---- ---- ----
Total return(3)................ 9.23% 55.85% 16.19% 24.35% 10.89% 9.05% 55.04% 15.58% 23.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $125,777 $70,300 $36,549 $29,468 $ 13,552 $9,518 $8,435 $6,017 $5,691
Ratio of expenses to average
net assets:(4)
Before expense waivers and
reimbursement............... 1.35% 1.48% 1.53% 1.66% 2.36% 1.89% 2.14% 2.21% 2.48%
After expense waivers and
reimbursement............... 1.35% 1.48% 1.53% 1.62% 1.51% 1.85% 1.99% 2.04% 2.14%
Ratio of net investment income
to average net assets(4)...... 0.44% 0.19% 0.04% 0.14% 0.13% -0.12% -0.27% -0.46% -0.40%
Portfolio turnover rate....... 30.24% 103.02% 74.52% 63.62% 64.89% 30.24% 103.02% 74.52% 63.62%
<CAPTION>
Stock Funds
---------------------
---------------------
April 30, 1996(2)
through
Dec. 31, 1996
<S> <C> <C>
Net asset value, beginning of
period........................ $ 10.14
-----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ (0.03)
Net realized and unrealized
gain on investments........... 1.08
-----
Total from investment
operations.................... 1.05
-----
LESS DISTRIBUTIONS:
From net investment income.... 0.00
From net capital gains........ (0.27)
In excess of realized gains... (0.01)
Tax return of capital
distribution.................. 0.00
-----
Total distributions........... (0.28)
-----
Net asset value, end of
period........................ $ 10.91
-----
-----
Total return(3)................ 10.34%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $ 2,210
Ratio of expenses to average
net assets:(4)
Before expense waivers and
reimbursement............... 3.25%
After expense waivers and
reimbursement............... 2.24%
Ratio of net investment income
to average net assets(4)...... -0.75%
Portfolio turnover rate....... 64.89%
</TABLE>
(1) Unaudited.
(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.
42
<PAGE> 43
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Growth and Income Fund
Class A Class B
-----------------------------------------------------------------------------------------------------------------------------
June 30, June 30,
2000(1) 1999 1998 1997 1996 1995 2000(1) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 26.61 $ 22.08 $ 18.86 $ 17.82 $ 15.91 $ 13.52 $ 26.47 $ 21.99 $ 18.80 $ 17.78 $ 15.89 $13.52
------ ------ ------ ------ ------ ----- ----- ----- ----- ----- ----- ----
0.12 0.14 0.15 0.10 0.14 0.20 0.05 0.03 0.05 0.03 0.06 0.10
1.30 6.85 4.71 4.58 3.06 4.26 1.29 6.80 4.67 4.56 3.05 4.26
------ ------ ------ ------ ------ ----- ----- ----- ----- ----- ----- ----
1.42 6.99 4.86 4.68 3.20 4.46 1.34 6.83 4.72 4.59 3.11 4.36
------ ------ ------ ------ ------ ----- ----- ----- ----- ----- ----- ----
(0.12) (0.14) (0.15) (0.10) (0.14) (0.20) (0.05) (0.03) (0.04) (0.03) (0.07) (0.12)
0.00 (2.32) (1.49) (3.53) (1.15) (1.87) 0.00 (2.32) (1.49) (3.53) (1.15) (1.87)
0.00 0.00 0.00 (0.01) 0.00 0.00 0.00 0.00 0.00 (0.01) 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
------ ------ ------ ------ ------ ----- ----- ----- ----- ----- ----- ----
(0.12) (2.46) (1.64) (3.64) (1.29) (2.07) (0.05) (2.35) (1.53) (3.57) (1.22) (1.99)
------ ------ ------ ------ ------ ----- ----- ----- ----- ----- ----- ----
$ 27.91 $ 26.61 $ 22.08 $ 18.86 $ 17.82 $ 15.91 $ 27.76 $ 26.47 $ 21.99 $ 18.80 $ 17.78 $15.89
------ ------ ------ ------ ------ ----- ----- ----- ----- ----- ----- ----
------ ------ ------ ------ ------ ----- ----- ----- ----- ----- ----- ----
5.32% 31.72% 25.83% 26.32% 20.16% 33.06% 5.05% 31.05% 25.14% 25.82% 19.60% 32.32%
$468,933 $410,721 $248,606 $173,796 $138,604 $93,061 $23,422 $23,471 $20,951 $18,227 $12,427 $4,292
1.03% 1.04% 1.06% 1.10% 1.16% 1.24% 1.54% 1.56% 1.61% 1.69% 1.83% 2.39%
1.03% 1.04% 1.06% 1.10% 1.16% 1.24% 1.53% 1.47% 1.56% 1.49% 1.66% 1.75%
0.88% 0.59% 0.73% 0.51% 0.82% 1.26% 0.37% 0.12% 0.24% 0.14% 0.29% 0.84%
16.48% 102.42% 106.21% 118.26% 86.66% 125.28% 16.48% 102.42% 106.21% 118.26% 86.66% 125.28%
</TABLE>
43
<PAGE> 44
Financial Highlights selected data for a share outstanding throughout each
period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
-----------------------------------------------------------------------------------------
Strategic Growth Fund
Class A Class B
-----------------------------------------------------------------------------------------
June 30, June 30,
2000(1) 1999 1998 1997 1996 1995 2000(1) 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period......................... $ 20.53 $ 17.11 $ 16.36 $ 14.01 $ 12.69 $ 10.00 $ 20.14 $ 16.91 $ 16.22
------ ------ ----- ----- ----- ----- ----- ----- -----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ (0.02) (0.01) 0.09 0.11 0.13 0.10 (0.08) (0.10) 0.01
Net realized and unrealized
gain on investments........... 3.07 6.87 1.86 3.65 2.88 2.82 3.01 6.77 1.79
------ ------ ----- ----- ----- ----- ----- ----- -----
Total from investment
operations.................... 3.05 6.86 1.95 3.76 3.01 2.92 2.93 6.67 1.80
------ ------ ----- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS:
From net investment income.... 0.00 0.00 (0.09) (0.11) (0.13) (0.09) 0.00 0.00 0.00
From net capital gains........ 0.00 (3.44) (1.00) (1.30) (1.56) (0.14) 0.00 (3.44) (1.00)
In excess of realized gains... 0.00 0.00 (0.11) 0.00 0.00 0.00 0.00 0.00 (0.11)
Tax return of capital
distribution.................. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ----- ----- ----- ----- ----- ----- -----
Total distributions........... 0.00 (3.44) (1.20) (1.41) (1.69) (0.23) 0.00 (3.44) (1.11)
------ ------ ----- ----- ----- ----- ----- ----- -----
Net asset value, end of
period......................... $ 23.58 $ 20.53 $ 17.11 $ 16.36 $ 14.01 $ 12.69 $ 23.07 $ 20.14 $ 16.91
------ ------ ----- ----- ----- ----- ----- ----- -----
------ ------ ----- ----- ----- ----- ----- ----- -----
Total return(2)................ 14.86% 40.12% 11.22% 26.89% 23.72% 29.14% 14.55% 39.47% 10.39%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $157,468 $102,428 $73,626 $54,310 $22,253 $12,223 $15,844 $14,559 $12,627
Ratio of expenses to average
net assets:(3)
Before expense waivers and
reimbursement............... 1.12% 1.17% 1.16% 1.21% 1.31% 1.65% 1.62% 1.70% 1.71%
After expense waivers and
reimbursement............... 1.12% 1.17% 1.16% 1.21% 1.31% 1.62% 1.62% 1.66% 1.66%
Ratio of net investment income
to average net assets(3)...... -0.21% -0.06% 0.52% 0.86% 1.08% 1.03% -0.73% -0.54% 0.03%
Portfolio turnover rate....... 25.91% 179.98% 89.69% 85.55% 119.87% 73.32% 25.91% 179.98% 89.69%
<CAPTION>
Stock Funds
-----------------------------
Class B
-----------------------------
June 30,
1997 1996 1995
<S> <C> <C> <C> <C>
Net asset value, beginning of
period......................... $ 13.92 $12.63 $ 9.98
----- ---- ----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ 0.05 0.07 0.03
Net realized and unrealized
gain on investments........... 3.60 2.85 2.82
----- ---- ----
Total from investment
operations.................... 3.65 2.92 2.85
----- ---- ----
LESS DISTRIBUTIONS:
From net investment income.... (0.05) (0.07) (0.06)
From net capital gains........ (1.30) (1.56) (0.14)
In excess of realized gains... 0.00 0.00 0.00
Tax return of capital
distribution.................. 0.00 0.00 0.00
----- ---- ----
Total distributions........... (1.35) (1.63) (0.20)
----- ---- ----
Net asset value, end of
period......................... $ 16.22 $13.92 $12.63
----- ---- ----
----- ---- ----
Total return(2)................ 26.23% 23.13% 28.58%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $12,344 $5,689 $2,332
Ratio of expenses to average
net assets:(3)
Before expense waivers and
reimbursement............... 1.82% 2.12% 3.25%
After expense waivers and
reimbursement............... 1.71% 1.81% 2.14%
Ratio of net investment income
to average net assets(3)...... 0.37% 0.59% 0.56%
Portfolio turnover rate....... 85.55% 119.87% 73.32%
</TABLE>
(1) Unaudited.
(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.
44
<PAGE> 45
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
----------------------------------------------------------------------------------------------------------------------
California Municipal Bond Fund
Class A Class B
----------------------------------------------------------------------------------------------------------------------
June 30, June 30,
2000(1) 1999 1998 1997 1996 1995 2000(1) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10.48 $ 11.49 $ 11.44 $ 11.15 $ 11.26 $ 10.31 $10.49 $11.50 $11.45 $11.15 $11.26 $10.32
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ---- ----
0.26 0.51 0.51 0.53 0.53 0.54 0.23 0.45 0.45 0.48 0.48 0.48
0.25 (1.01) 0.16 0.33 (0.11) 0.95 0.25 (1.01) 0.16 0.34 (0.11) 0.94
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ---- ----
0.51 (0.50) 0.67 0.86 0.42 1.49 0.48 (0.56) 0.61 0.82 0.37 1.42
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ---- ----
(0.26) (0.51) (0.51) (0.53) (0.53) (0.54) (0.23) (0.45) (0.45) (0.48) (0.48) (0.48)
0.00 0.00 (0.11) (0.04) 0.00 0.00 0.00 0.00 (0.11) (0.04) 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ---- ----
(0.26) (0.51) (0.62) (0.57) (0.53) (0.54) (0.23) (0.45) (0.56) (0.52) (0.48) (0.48)
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ---- ----
$ 10.73 $ 10.48 $ 11.49 $ 11.44 $ 11.15 $ 11.26 $10.74 $10.49 $11.50 $11.45 $11.15 $11.26
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ---- ----
------ ------ ------ ------ ------ ------ ----- ---- ---- ---- ---- ----
4.90% -4.48% 5.94% 7.97% 3.90% 14.76% 4.64% -4.99% 5.41% 7.53% 3.39% 14.05%
$191,929 $198,406 $211,938 $195,292 $177,593 $184,283 $5,017 $5,850 $7,983 $8,025 $5,360 $3,162
0.93% 0.93% 0.94% 0.95% 0.96% 0.96% 1.71% 1.62% 1.63% 1.70% 1.83% 2.24%
0.93% 0.88% 0.94% 0.95% 0.96% 0.93% 1.43% 1.43% 1.44% 1.45% 1.46% 1.46%
4.88% 4.61% 4.43% 4.76% 4.82% 4.98% 4.38% 4.05% 3.94% 4.24% 4.33% 4.42%
5.45% 17.01% 14.95% 15.95% 29.28% 25.90% 5.45% 17.01% 14.95% 15.95% 29.28% 25.90%
</TABLE>
45
<PAGE> 46
Financial Highlights selected data for a share outstanding throughout each
period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
----------------------------------------------------------------------------------------------
National Municipal Bond Fund
Class A Class B
----------------------------------------------------------------------------------------------
June 30, June 30,
2000(1) 1999 1998 1997 1996 1995 2000(1) 1999 1998 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................ $ 10.50 $ 11.56 $ 11.54 $ 11.21 $ 11.39 $ 10.41 $10.51 $11.56 $11.55 $11.21
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ 0.26 0.51 0.51 0.53 0.52 0.53 0.23 0.46 0.46 0.48
Net realized and unrealized
gain on investments........... 0.15 (1.06) 0.13 0.40 (0.12) 0.98 0.14 (1.05) 0.12 0.41
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
Total from investment
operations.................... 0.41 (0.55) 0.64 0.93 0.40 1.51 0.37 (0.59) 0.58 0.89
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
LESS DISTRIBUTIONS:
From net investment income.... (0.26) (0.51) (0.51) (0.53) (0.52) (0.53) (0.23) (0.46) (0.46) (0.48)
From net capital gains........ 0.00 0.00 (0.11) (0.07) (0.06) 0.00 0.00 0.00 (0.11) (0.07)
In excess of realized gains... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tax return of capital
distribution.................. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
Total distributions........... (0.26) (0.51) (0.62) (0.60) (0.58) (0.53) (0.23) (0.46) (0.57) (0.55)
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
Net asset value, end of
period......................... $ 10.65 $ 10.50 $ 11.56 $ 11.54 $ 11.21 $ 11.39 $10.65 $10.51 $11.56 $11.55
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
Total return(3)................ 3.95% -4.86% 5.70% 8.56% 3.58% 14.76% 3.60% -5.25% 5.08% 8.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $49,482 $54,296 $62,558 $58,740 $49,597 $53,387 $1,588 $2,158 $3,244 $3,162
Ratio of expenses to average
net assets:(4)
Before expense waivers and
reimbursement............... 1.01% 0.98% 0.99% 1.00% 1.01% 1.05% 2.37% 1.99% 1.96% 2.13%
After expense waivers and
reimbursement............... 1.01% 0.97% 0.99% 1.00% 1.01% 0.91% 1.51% 1.47% 1.49% 1.50%
Ratio of net investment income
to average net assets(4)...... 4.95% 4.62% 4.44% 4.72% 4.63% 4.79% 4.45% 4.10% 3.93% 4.21%
Portfolio turnover rate....... 7.75% 16.44% 21.89% 21.80% 44.76% 53.43% 7.75% 16.44% 21.89% 21.80%
<CAPTION>
Bond Funds
---------------
Class B
---------------
June 30,
1996 1995
<S> <C> <C>
Net asset value, beginning of
period........................ $11.39 $10.41
---- ----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ 0.46 0.47
Net realized and unrealized
gain on investments........... (0.12) 0.98
---- ----
Total from investment
operations.................... 0.34 1.45
---- ----
LESS DISTRIBUTIONS:
From net investment income.... (0.46) (0.47)
From net capital gains........ (0.06) 0.00
In excess of realized gains... 0.00 0.00
Tax return of capital
distribution.................. 0.00 0.00
---- ----
Total distributions........... (0.52) (0.47)
---- ----
Net asset value, end of
period......................... $11.21 $11.39
---- ----
---- ----
Total return(3)................ 3.07% 14.16%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $1,952 $1,051
Ratio of expenses to average
net assets:(4)
Before expense waivers and
reimbursement............... 2.29% 3.25%
After expense waivers and
reimbursement............... 1.51% 1.44%
Ratio of net investment income
to average net assets(4)...... 4.14% 4.22%
Portfolio turnover rate....... 44.76% 54.30%
</TABLE>
(1) Unaudited.
(2) Commencement of operations.
(3) Total returns assume purchase at net asset value (without sales charge) at
the beginning of each period. Returns for periods less than a full year are
aggregate (non-annualized) returns.
(4) Annualized when the period presented is less than one year.
The accompanying notes are an integral part of these financial statements.
46
<PAGE> 47
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
Strategic Income Fund
Class A Class B
--------------------------------------------------------------------------------------------------------------
May 20, 1996(2) May 20, 1996(2)
June 30, through June 30, through
2000(1) 1999 1998 1997 Dec. 31, 1996 2000(1) 1999 1998 1997 Dec. 31, 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 4.67 $ 4.98 $ 5.16 $ 5.16 $ 5.00 $ 4.66 $ 4.97 $ 5.15 $ 5.15 $ 5.00
----- ----- ----- ----- ------ ----- ---- ---- ---- -----
0.20 0.40 0.38 0.42 0.25 0.18 0.38 0.34 0.38 0.23
(0.13) (0.30) (0.15) 0.06 0.18 (0.13) (0.31) (0.15) 0.06 0.17
----- ----- ----- ----- ------ ----- ---- ---- ---- -----
0.07 0.10 0.23 0.48 0.43 0.05 0.07 0.19 0.44 0.40
----- ----- ----- ----- ------ ----- ---- ---- ---- -----
(0.20) (0.40) (0.38) (0.42) (0.25) (0.18) (0.37) (0.34) (0.38) (0.23)
0.00 0.00 (0.00) (0.05) (0.01) 0.00 0.00 (0.00) (0.05) (0.01)
0.00 0.00 (0.00) (0.01) (0.01) 0.00 0.00 (0.00) (0.01) (0.01)
0.00 (0.01) (0.03) 0.00 0.00 0.00 (0.01) (0.03) 0.00 0.00
----- ----- ----- ----- ------ ----- ---- ---- ---- -----
(0.20) (0.41) (0.41) (0.48) (0.27) (0.18) (0.38) (0.37) (0.44) (0.25)
----- ----- ----- ----- ------ ----- ---- ---- ---- -----
$ 4.54 $ 4.67 $ 4.98 $ 5.16 $ 5.16 $ 4.53 $ 4.66 $ 4.97 $ 5.15 $ 5.15
----- ----- ----- ----- ------ ----- ---- ---- ---- -----
----- ----- ----- ----- ------ ----- ---- ---- ---- -----
1.46% 1.92% 4.03% 9.57% 8.89% 1.21% 1.21% 3.25% 8.77% 8.25%
$69,542 $67,218 $66,375 $37,831 $ 17,863 $4,936 $5,285 $7,205 $8,048 $ 2,964
1.36% 1.37% 1.36% 1.51% 1.85% 2.12% 2.08% 2.01% 2.27% 3.25%
1.36% 1.16% 0.80% 0.41% 0.02% 1.86% 1.83% 1.53% 1.16% 0.74%
8.57% 8.42% 7.45% 8.04% 8.19% 8.08% 7.69% 6.71% 7.29% 7.47%
77.69% 119.62% 172.43% 221.42% 187.15% 77.69% 119.62% 172.43% 221.42% 187.15%
</TABLE>
47
<PAGE> 48
Financial Highlights selected data for a share outstanding throughout each
period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
-------------------------------------------------------------------------------------------
U.S. Government and Mortgage Securities Fund
Class A Class B
-------------------------------------------------------------------------------------------
June 30, June 30,
2000(1) 1999 1998 1997 1996 1995 2000(1) 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period......................... $ 9.61 $ 10.17 $ 10.20 $ 10.07 $ 10.30 $ 9.55 $ 9.61 $10.17 $10.20
------ ------ ------ ------ ------ ------ ----- ---- ----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ 0.30 0.60 0.63 0.67 0.67 0.69 0.28 0.55 0.58
Net realized and unrealized
gain on investments........... 0.00 (0.56) (0.03) 0.13 (0.23) 0.75 0.00 (0.56) (0.03)
------ ------ ------ ------ ------ ------ ----- ---- ----
Total from investment
operations.................... 0.30 0.04 0.60 0.80 0.44 1.44 0.28 (0.01) 0.55
------ ------ ------ ------ ------ ------ ----- ---- ----
LESS DISTRIBUTIONS:
From net investment income.... (0.30) (0.60) (0.63) (0.67) (0.67) (0.69) (0.28) (0.55) (0.58)
From net capital gains........ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
In excess of realized gains... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tax return of capital
distribution.................. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------ ------ ----- ---- ----
Total distributions........... (0.30) (0.60) (0.63) (0.67) (0.67) (0.69) (0.28) (0.55) (0.58)
------ ------ ------ ------ ------ ------ ----- ---- ----
Net asset value, end of
period......................... $ 9.61 $ 9.61 $ 10.17 $ 10.20 $ 10.07 $ 10.30 $ 9.61 $ 9.61 $10.17
------ ------ ------ ------ ------ ------ ----- ---- ----
------ ------ ------ ------ ------ ------ ----- ---- ----
Total return(2)................ 3.21% 0.39% 6.06% 8.25% 4.50% 15.50% 2.95% -0.10% 5.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $176,214 $202,966 $216,344 $202,573 $224,301 $255,614 $3,823 $4,783 $6,804
Ratio of expenses to average
net assets:(3)
Before expense waivers and
reimbursement............... 1.04% 1.01% 1.02% 1.03% 1.03% 1.04% 1.88% 1.73% 1.72%
After expense waivers and
reimbursement............... 1.04% 1.01% 1.02% 1.03% 1.03% 1.02% 1.54% 1.51% 1.53%
Ratio of net investment income
to average net assets(3)...... 6.35% 6.05% 6.20% 6.67% 6.67% 6.90% 5.85% 5.55% 5.70%
Portfolio turnover rate....... 0.00% 20.67% 22.70% 3.73% 27.45% 48.39% 0.00% 20.67% 22.70%
<CAPTION>
Bond Funds
----------------------------
Class B
----------------------------
June 30,
1997 1996 1995
<S> <C> <C> <C> <C>
Net asset value, beginning of
period......................... $10.07 $10.30 $ 9.55
---- ---- ----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ 0.62 0.62 0.64
Net realized and unrealized
gain on investments........... 0.13 (0.23) 0.75
---- ---- ----
Total from investment
operations.................... 0.75 0.39 1.39
---- ---- ----
LESS DISTRIBUTIONS:
From net investment income.... (0.62) (0.62) (0.64)
From net capital gains........ 0.00 0.00 0.00
In excess of realized gains... 0.00 0.00 0.00
Tax return of capital
distribution.................. 0.00 0.00 0.00
---- ---- ----
Total distributions........... (0.62) (0.62) (0.64)
---- ---- ----
Net asset value, end of
period......................... $10.20 $10.07 $10.30
---- ---- ----
---- ---- ----
Total return(2)................ 7.72% 3.98% 14.93%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $7,228 $5,888 $3,799
Ratio of expenses to average
net assets:(3)
Before expense waivers and
reimbursement............... 1.76% 1.82% 2.27%
After expense waivers and
reimbursement............... 1.53% 1.53% 1.53%
Ratio of net investment income
to average net assets(3)...... 6.16% 6.19% 6.34%
Portfolio turnover rate....... 3.73% 27.45% 48.39%
</TABLE>
(1) Unaudited.
(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.
48
<PAGE> 49
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds
----------------------------------------------------------------------------------------------------------------
California Municipal Money Fund National Municipal Money Fund
Class A Class A
----------------------------------------------------------------------------------------------------------------
June 30, June 30,
2000(1) 1999 1998 1997 1996 1995 2000(1) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- ----
0.014 0.024 0.026 0.029 0.028 0.032 0.016 0.027 0.029 0.030 0.029 0.032
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- ----
0.014 0.024 0.026 0.029 0.028 0.032 0.016 0.027 0.029 0.030 0.029 0.032
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- ----
(0.014) (0.024) (0.026) (0.029) (0.028) (0.032) (0.016) (0.027) (0.029) (0.030) (0.029) (0.032)
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- ----
(0.014) (0.024) (0.026) (0.029) (0.028) (0.032) (0.016) (0.027) (0.029) (0.030) (0.029) (0.032)
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- ----
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- ----
----- ----- ----- ----- ----- ----- ----- ---- ---- ---- ---- ----
1.42% 2.44% 2.67% 2.97% 2.82% 3.22% 1.66% 2.67% 2.95% 3.09% 2.96% 3.26%
$39,391 $39,316 $40,483 $44,751 $37,355 $39,439 $4,940 $4,505 $5,464 $6,579 $7,514 $7,860
0.94% 0.95% 0.99% 0.97% 1.00% 1.00% 1.49% 1.43% 1.35% 1.31% 1.32% 1.29%
0.63% 0.63% 0.67% 0.64% 0.63% 0.67% 0.71% 0.70% 0.67% 0.68% 0.68% 0.75%
2.83% 2.41% 2.74% 2.94% 2.78% 3.18% 3.30% 2.63% 2.91% 3.04% 2.92% 3.21%
-- -- -- -- -- -- -- -- -- -- -- --
</TABLE>
49
<PAGE> 50
Financial Highlights selected data for a share outstanding throughout each
period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds
----------------------------------------------------------------------------------------------
U.S. Treasury Money Fund
Class A Class B
----------------------------------------------------------------------------------------------
June 30, June 30,
2000(1) 1999 1998 1997 1996 1995 2000(1) 1999 1998 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ 0.025 0.040 0.045 0.046 0.046 0.050 0.021 0.032 0.038 0.039
Net realized and unrealized
gain on investments........... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
Total from investment
operations.................... 0.025 0.040 0.045 0.046 0.046 0.050 0.021 0.032 0.038 0.039
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
LESS DISTRIBUTIONS:
From net investment income.... (0.025) (0.040) (0.045) (0.046) (0.046) (0.050) (0.021) (0.032) (0.038) (0.039)
From net capital gains........ 0.000 0.000 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 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 0.000 0.000
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
Total distributions........... (0.025) (0.040) (0.045) (0.046) (0.046) (0.050) (0.021) (0.032) (0.038) (0.039)
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
Net asset value, end of
period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
----- ----- ----- ----- ----- ----- ----- ---- ---- ----
Total return(2)................ 2.49% 4.02% 4.60% 4.73% 4.74% 5.13% 2.10% 3.25% 3.81% 3.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $61,366 $55,892 $58,186 $60,033 $65,479 $51,385 $ 559 $ 529 $ 542 $ 165
Ratio of expenses to average
net assets:(3)
Before expense waivers and
reimbursement............... 1.03% 1.03% 1.02% 1.02% 1.02% 1.05% 4.19% 4.06% 6.65% 3.25%
After expense waivers and
reimbursement............... 0.68% 0.69% 0.60% 0.62% 0.52% 0.64% 1.43% 1.44% 1.34% 1.37%
Ratio of net investment income
to average net assets(3)...... 4.93% 3.96% 4.49% 4.63% 4.63% 4.99% 4.19% 3.21% 3.61% 3.90%
Portfolio turnover rate....... -- -- -- -- -- -- -- -- -- --
<CAPTION>
Money Funds
-------------------
Class B
-------------------
June 30,
1996 1995
<S> <C> <C> <C>
Net asset value, beginning of
period......................... $ 1.00 $ 1.00
---- ----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)........................ 0.040 0.044
Net realized and unrealized
gain on investments........... 0.000 0.000
---- ----
Total from investment
operations.................... 0.040 0.044
---- ----
LESS DISTRIBUTIONS:
From net investment income.... (0.040) (0.044)
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........... (0.040) (0.044)
---- ----
Net asset value, end of
period......................... $ 1.00 $ 1.00
---- ----
---- ----
Total return(2)................ 4.07% 4.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)....................... $ 120 $ 113
Ratio of expenses to average
net assets:(3)
Before expense waivers and
reimbursement............... 3.25% 3.25%
After expense waivers and
reimbursement............... 1.18% 1.24%
Ratio of net investment income
to average net assets(3)...... 3.95% 4.34%
Portfolio turnover rate....... -- --
</TABLE>
(1) Unaudited.
(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.
50
<PAGE> 51
(This page is intentionally left blank)
51
<PAGE> 52
Notes to Financial Statements June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Atlas Assets, Inc., a Maryland corporation (the "Company"), is an open-end
management investment company registered under the Investment Company Act of
1940 ("1940 Act"), as amended, and offering twelve portfolios. The Company
currently consists of the Atlas Balanced Fund, 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 Money Fund and the Atlas
California Municipal Bond Fund which are non-diversified. The Funds offer two
classes of shares, Class A and Class B, with the exception of Atlas California
Municipal Money Fund and Atlas National Municipal Money Fund which offer only
Class A shares. Class A shares are offered at net asset value at the time of
purchase while all Class B shares may be subject to a contingent deferred sales
charge. Both share classes have equal rights and privileges but have separate
distribution plans, class specific expenses and exclusive rights to vote on
matters affecting only individual classes. Class B shares will automatically
convert to Class A shares sixty months after purchase.
The investment objective of the Money and Bond Funds is to seek a high level
of current income consistent with prudent investment management. The Money Funds
seek short-term yields with liquidity and stability of principal. The Bond Funds
seek higher long-term yields for investors who can accept price fluctuations.
The Stock Funds seek a varying mix of long-term capital growth and current
income for investors who can accept price fluctuations.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
a. Investment Valuation: Bond Fund securities are valued by pricing
services. Valuations of portfolio securities furnished by the pricing
services are based upon a computerized matrix system and/or appraisals,
in each case, in reliance upon information concerning market transactions
and quotations from recognized securities dealers. Securities for which
quotations are readily available are valued based upon those quotations.
Securities for which quotations are not readily available (which
constitute the majority of the Bond Funds' securities) are valued at
their fair value based upon the information supplied by the pricing
services. The methods used by the pricing services and the quality of
valuations so established are reviewed by the Company's officers under
the general supervision of the Directors of the Company. There are a
number of pricing services available and the Directors, on the basis of
ongoing evaluation of these services, may use other pricing services or
discontinue the use of any pricing service in whole or in part.
Money Fund securities have a remaining maturity of 13 months or less and
their entire portfolios have a weighted average maturity of 90 days or
less. As such, all of the Money Fund securities are valued at amortized
cost, which approximates value. If a Money Fund portfolio had a remaining
weighted average maturity of greater than 90 days, the portfolios would
be stated at value based on recorded closing sales on a national
securities exchange or, in the absence of a recorded sale, at the mean
between the bid and asked prices.
Stock Fund securities listed or traded on an exchange are valued at the
last sales price on the exchange, or lacking any sales on a particular
day, the security is valued at the mean between the closing bid and asked
prices on that day. Each security traded in the over-the-counter market
(but not including securities reported on the NASDAQ National Market
System) is valued at the mean between the last bid and asked prices. Each
security reported on the NASDAQ National Market System is valued at the
last sales price on the valuation date.
b. Security Credit Risk: The Atlas Strategic Income Fund may invest any
amount of its assets in higher yielding, lower-rated debt securities,
including defaulted securities, which may be subject to a greater degree
of credit risk, greater market fluctuations and risk of loss of income
and principal than lower yielding, investment grade fixed income
securities. The Atlas Global Growth Fund and the Atlas Emerging Growth
Fund may also invest in such lower-rated securities, but only to a much
more limited extent. As of June 30, 2000, Atlas Strategic Income
52
<PAGE> 53
--------------------------------------------------------------------------------
Fund holds securities in default with an aggregate market value of
$519,757, representing 0.70% 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 Emerging Growth
Fund, the Atlas Global Growth Fund and the Atlas Strategic Growth Fund,
which are on an annual schedule, declare, pay and reinvest dividends
quarterly. Income for the Atlas Global Growth Fund, the Atlas Growth and
Income Fund and the Atlas Strategic Growth Fund for the period ended June
30, 2000 are net of foreign withholding taxes of $58,082, $1,716 and
$1,979, respectively. Distributions of capital gains, if any, will
normally be declared and paid once a year.
i. To-Be-Announced Securities: The Funds may trade portfolio securities on
a "to-be-announced" (TBA) basis. In a TBA transaction, the Fund has
committed to purchasing or selling securities for which all specific
information is not yet known at the time of the trade, particularly the
pool number and face amount. Securities purchased on a TBA basis are not
settled until they are delivered to the Fund, normally 15 to 45 days
later. These transactions are subject to market fluctuations and their
current value is determined in the same manner as for other portfolio
securities. Pursuant to regulation, the Fund sets aside sufficient
investment securities as collateral to meet these commitments. TBA
commitments as of June 30, 2000 amounted to $9,693,160 for Atlas Balanced
Fund and $2,683,292 for Atlas Strategic Income Fund.
j. Options: Premiums received from call options written are recorded as a
liability. The amount of the liability is subsequently adjusted to
reflect the current market value of the option written. If the option is
not exercised, premiums received are realized as a gain at expiration
date. If the position is closed prior to expiration, a gain or
53
<PAGE> 54
Notes to Financial Statements June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
loss is realized based on premiums received less the cost of the closing
transaction. When an option is exercised, premiums received are added to
the proceeds from the sale of the underlying securities and a gain or
loss is realized accordingly. These same principles apply to the sale of
put options.
k. Forward Contracts: The Stock Funds and Atlas Strategic Income Fund may
enter into forward foreign currency exchange contracts (forward
contracts) to hedge specific transactions or portfolio positions and to
protect the value of the portfolio against future changes in currency
exchange rates. A forward contract is an obligation to purchase or sell a
specific currency at an agreed upon future date at a price set on the day
of the contract.
The valuation of forward contracts, which may be owned by the Stock funds
and Atlas Strategic Income Fund, is based on the daily closing prices of
the forward currency contract rates in the London foreign exchange
markets as provided by pricing services. Gains or losses are realized
upon the closing or settlement of the forward transaction.
Securities are held in segregated accounts to cover net exposure on
outstanding forward contracts. Unrealized appreciation or depreciation on
forward contracts is reported in the Statement of Assets and Liabilities.
Realized gains and losses are reported with all other foreign currency
gains and losses in the Fund's Statement of Operations.
The risks associated with forward contracts include the potential default
of the other party to the contract and unanticipated movements in the
value of a foreign currency relative to the U.S. dollar.
l. Repurchase Agreements: The Funds may invest in repurchase agreements
secured by U.S. Government obligations or by other securities. Securities
pledged as collateral for repurchase agreements are held by the Funds'
custodian bank until maturity of the repurchase agreements. Provisions of
the agreements ensure that the market value of the collateral is
sufficient in the event of default; however, in the event of default or
bankruptcy by the other party to the agreements, realization and/or
retention of the collateral may be subject to legal proceedings.
m. Dollar Roll Transactions: The Atlas U.S. Government and Mortgage
Securities Fund and the Atlas Strategic Income Fund may engage in dollar
reverse repurchase agreements ("dollar rolls"), which entail the
simultaneous sale of securities with an agreement to buy back
substantially similar securities at a future date at a price less than
the price at which the securities were originally sold. These
transactions are accounted for as financing transactions as opposed to
sales and purchases. The differential in price between the sale price and
repurchase price is recorded as deferred income and recognized between
the settlement dates of the sale and repurchase. Pursuant to regulation,
the funds set aside sufficient investment securities as collateral to
meet these commitments. Dollar roll transactions involve risk that the
market value of the securities sold by the Funds may decline below the
repurchase price of those securities.
n. Foreign Currency Translation: Amounts denominated in or expected to
settle in foreign currencies (FC) are translated into United States
dollars at rates reported by selected pricing services on the following
basis: Market value of investment, other assets and liabilities -- at the
closing rate of exchange at the balance sheet date; purchases and sales
of investment securities, income and expenses -- at the rate of exchange
prevailing on the respective dates such transactions are recorded.
The Funds do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held.
Such fluctuations are included with the net realized and unrealized gain
or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of FC's, currency gains or
losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest
and foreign withholding taxes recorded on the Funds' books, and the U.S.
dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at
fiscal year end, resulting from changes in the exchange rates.
54
<PAGE> 55
--------------------------------------------------------------------------------
o. Classification of Distributions to Shareholders: Net investment income
(loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of distributions made during the year
from net investment income or net realized gains may vary from the
characterization for Federal income tax purposes. Also, due to the timing
of dividend distributions, the fiscal year in which distributions are
made may differ from the fiscal year in which the income or realized gain
was recorded by a Fund.
The Funds adjust the classification of distributions to shareholders to
reflect the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, 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.
p. Use of Estimates: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
2. UNREALIZED APPRECIATION/DEPRECIATION -- TAX BASIS
As of June 30, 2000, 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........ $ 5,462 $ 7,109 $ 30,092 $160,025 $ 46,764
Unrealized depreciation........ $(2,142) $(2,830) $ (6,838) $(17,226) $ (5,045)
--------------------------------------------------------------------------------------------
Net unrealized appreciation.... $ 3,320 $ 4,279 $ 23,254 $142,799 $ 41,719
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Cost of securities for federal
income tax purposes............ $62,570 $24,765 $111,653 $347,825 $131,392
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
<CAPTION>
California
Municipal
Bond Fund
----------------------------------------------------------------------
<S> <C> <C>
Unrealized appreciation........ $ 6,081
Unrealized depreciation........ $ (4,890)
-----------------------------------------------------------------------------------------------
Net unrealized appreciation.... $ 1,191
-------------------------------------------------------------------------------------------- ----
-------------------------------------------------------------------------------------------- ----
Cost of securities for federal
income tax purposes............ $192,720
-------------------------------------------------------------------------------------------- ----
-------------------------------------------------------------------------------------------- ----
</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........ $ 1,596 $ 1,401 $ 329 $ 0 $ 0
Unrealized depreciation........ $(1,594) $(5,833) $ (7,166) $ 0 $ 0
-----------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation)................. $ 2 $(4,432) $ (6,837) $ 0 $ 0
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Cost of securities for federal
income tax purposes............ $50,256 $80,913 $186,490 $39,140 $4,893
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
<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............ $61,308
----------------------------------------------------------------------------------------- -------
----------------------------------------------------------------------------------------- -------
</TABLE>
3. SHARE TRANSACTIONS
The following is a summary of share transactions for the periods ended June
30, 2000 and December 31, 1999 (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
---------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold...... 371 1,582 3 17 625 260 18 8 2,612 1,055 44 17
Issued in
reinvestment
of dividends.. 50 317 4 30 0 39 0 5 0 543 0 68
Redeemed...... (1,998) (2,350) (163) (138) (126) (476) (9) (59) (287) (462) (28) (56)
----------------------------------------------------------------------------------------
Net
increase
(decrease)....(1,577) (451) (156) (91) 499 (177) 9 (46) 2,325 1,136 16 29
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
</TABLE>
55
<PAGE> 56
Notes to Financial Statements June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<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
-----------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold... ....... 2,453 4,441 43 73 2,046 954 45 11 864 3,183 25 47
Issued in
reinvestment
of dividends... 67 1,284 1 70 0 708 0 105 297 610 7 18
Redeemed.......(1,154) (1,551) (87) (209) (357) (977) (81) (140) (2,211) (3,311) (123) (202)
-----------------------------------------------------------------------------------------------
Net
increase
(decrease).... 1,366 4,174 (43) (66) 1,689 685 (36) (24) (1,050) 482 (91) (137)
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
U.S. Government and
National Municipal Bond Fund Strategic Income Fund Mortgage Securities Fund
Class A Class B Class A Class B Class A Class B
-----------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold... 191 652 9 6 3,679 5,565 35 36 744 5,397 4 20
Issued in
reinvestment
of dividends... 86 187 3 9 271 553 23 51 390 865 8 23
Redeemed....... (800) (1,081) (68) (90) (3,017) (5,064) (102) (404) (3,919) (6,416) (112) (214)
---------------------------------------------------------------------------------------------------
Net
increase
(decrease).....(523) (242) (56) (75) 933 1,054 (44) (317) (2,785) (154) (100) (171)
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
California Municipal National Municipal
Money Fund Money Fund U.S. Treasury Money Fund
Class A Class A Class A Class B
--------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold... 13,979 27,193 2,225 3,135 34,869 43,977 688 634
Issued in
reinvestment
of dividends... 524 906 73 135 1,307 2,076 11 19
Redeemed... (14,428) (29,266) (1,864) (4,229) (30,700) (48,346) (669) (666)
--------------------------------------------------------------------------------
Net
increase
(decrease)... 75 (1,167) 434 (959) 5,476 (2,293) 30 (13)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
</TABLE>
4. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding short-term securities)
for the six months ended June 30, 2000 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...................... $108,663 $19,047 $78,489 $61,444 $50,229 $10,447
Sales.......................... $128,625 $12,802 $30,432 $84,216 $32,295 $14,295
-------------------------------------------------------------------------
</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...................... $3,878 $57,160 $0 $0 $0 $0
Sales.......................... $7,026 $55,463 $29,721 $0 $0 $0
------------------------------------------------------------------------------
</TABLE>
At June 30, 2000 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>
56
<PAGE> 57
--------------------------------------------------------------------------------
Such amounts may be used to offset capital gains realized during the
subsequent periods indicated and thereby relieve these funds and their
shareholders of federal tax liability with respect to the capital gains that are
so offset. It is the intention of the Funds not to make distributions from
capital gains while they have a capital loss carryover.
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Atlas Advisers, Inc. (the "Adviser") provides portfolio management services to
the U.S. Government and Mortgage Securities Fund and the U.S. Treasury Money
Fund and supervises the provision of similar services to the Atlas Municipal
Funds by Boston Safe Advisers, Inc. and to the Atlas Stock Funds and Atlas
Strategic Income Fund by OppenheimerFunds, Inc. (together, the "Subadvisers").
Each Fund pays the Adviser a management fee for the investment management
services who, in turn, pays the Subadvisers. The management fee is based on an
annual rate, equal to a percentage of each Fund's average daily net assets, and
is paid monthly as follows: .50% of assets up to $500 million and .475% of
assets over $500 million for the Money Funds; .55% of assets up to $500 million
and .50% of assets over $500 million for the Bond Funds other than Atlas
Strategic Income Fund; .70% of assets up to $100 million, .60% of assets of the
next $400 million and .50% of assets over $500 million for the Stock Funds other
than Atlas Global Growth Fund and Atlas Emerging Growth Fund; .75% of assets up
to $100 million, .70% of assets of the next $400 million and .65% of assets over
$500 million for the Atlas Strategic Income Fund; and .80% of assets up to $100
million, .75% of assets of the next $400 million and .70% of assets over $500
million for the Atlas Global Growth Fund and the Atlas Emerging Growth Fund.
Atlas Securities, Inc. (the "Distributor") acts as principal underwriter for
all classes of shares of each Fund pursuant to a Principal Underwriting
Agreement which provides for a commission to be paid on the redemption of Class
B shares held less than five years of the Stock and Bond Funds and the U.S.
Treasury Money Fund. The Distributor also receives payments under separate
Distribution Plans (the "Class A Plan" and "Class B Plan") pursuant to Rule
12b-1 of the 1940 Act. Under the Class A Plan, the Company may reimburse the
Distributor up to a maximum of .25% per year of average daily Class A net assets
in each Fund, payable on a quarterly basis. Under the Class B Plan, the maximum
rate is .75% per year of average daily Class B net assets in each Fund and is
payable on a monthly basis.
Due to voluntary expense waivers in effect during the period ended June 30,
2000, 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 the rate of .75% per
annum. Class A 12b-1 fees due the Distributor were reduced in the amount of
$140,276. Management fees due the Adviser were reduced by $53,147. The Adviser
also absorbed $51,098 of other Fund expenses during the period. During the six
months ended June 30, 2000, the Distributor received $41,993 for contingent
deferred sales charges paid by sellers of Class B shares. Such sales charges are
not an expense of the Funds and thus are not reflected in the accompanying
Statements of Operations.
The Adviser and Distributor are wholly owned subsidiaries of Golden West
Financial Corporation. Certain officers and directors of the Company are also
officers and/or directors of the Adviser and the Distributor.
At June 30, 2000, Golden West Financial Corporation owned 80,862 Class A
shares in the California Municipal Bond Fund, 45,162 shares in the National
Municipal Bond Fund and 116,324 shares in the Emerging Growth Fund.
6. CONCENTRATIONS OF CREDIT RISK
There are certain concentrations of credit risk, which may subject the Funds
more significantly to economic changes occurring in certain industries or
sectors as follows:
The California Municipal Money Fund and the California Municipal Bond Fund
have concentrations in California municipal securities.
The U.S. Government and Mortgage Securities Fund has a concentration in
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association
securities.
The U.S. Treasury Money Fund has a concentration in United States Treasury
obligations.
57
<PAGE> 58
Notes to Financial Statements June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Industry and sector concentrations greater than 10% of a Fund's net assets at
June 30, 2000 are as follows:
The Balanced Fund has 17.22% in Federal National Mortgage Association bonds
and 11.63% in electronics.
The Emerging Growth Fund has 17.16% in computer software.
The Global Growth Fund has 12.01% in electronics.
The Growth and Income Fund has 15.97% in electronics.
The Strategic Growth Fund has 11.54% in communication equipment and 22.12% in
electronics.
The California Municipal Bond Fund has 17.55% in transportation, 16.00% in
prerefunded bonds, 12.81% in water/sewer, 12.26% in lease revenue and 11.08% in
general obligation bonds.
The National Municipal Bond Fund has 20.94% in general obligation bonds,
14.19% in public power and 12.07% in transportation.
The California Municipal Money Fund has 24.26% in housing and 15.23% in
general obligation bonds.
The National Municipal Money Fund has 38.36% in health, 20.35% in general
obligation bonds and 10.12% in industrial development.
7. FORWARD CONTRACTS
Open forward contracts in the Funds to purchase and sell foreign currencies as
of June 30, 2000 were as follows:
<TABLE>
<CAPTION>
Contract
Settlement Amount Valuation as Unrealized
Date (000's) of 6/30/00 Gain (Loss)
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Global Growth Fund:
-------------------
Contracts to Purchase:
--------------------
British Pound Sterling................................... 07/05/00 40 GBP $ 60,338 $ 127
Euro..................................................... 07/31/00 417 EUR 399,145 8,334
Japanese Yen............................................. 07/03/00 86,870 JPY 817,435 (9,505)
---------- --------
$1,276,918 (1,044)
========== --------
Contracts to Sell:
---------------
Euro..................................................... 07/03/00 112 EUR $ 107,115 (1,169)
Japanese Yen............................................. 07/03/00 33,575 JPY 316,007 4,370
Swedish Krona............................................ 07/03/00 343 SEK 39,016 (382)
---------- --------
$ 462,138 2,819
========== --------
Net unrealized gain...................................... $ 1,775
========
Strategic Income Fund:
---------------------
Contracts to Purchase:
--------------------
British Pound Sterling................................... 07/17/00 100 GBP $ 151,571 $ 3,221
Canadian Dollar.......................................... 07/20/00 280 CAD 188,994 (2,269)
Euro..................................................... 07/03/00-08/21/00 924 EUR 885,187 522
Japanese Yen............................................. 07/10/00-09/05/00 87,900 JPY 828,730 14,584
Polish Zloty............................................. 07/31/00 1,180 PLZ 268,561 6,747
---------- --------
$2,323,043 22,805
========== --------
Contracts to Sell:
---------------
British Pound Sterling................................... 07/17/00-09/05/00 685 GBP $1,038,254 (4,494)
Canadian Dollar.......................................... 07/20/00 280 CAD 188,994 (255)
Euro..................................................... 07/03/00-08/21/00 1,125 EUR 1,078,057 (14,479)
Japanese Yen............................................. 8/07/00-09/05/00 106,200 JPY 1,007,409 (17,392)
Polish Zloty............................................. 07/31/00 1,180 PLZ 268,561 (12,272)
---------- --------
$3,581,275 (48,892)
========== --------
Net unrealized loss...................................... $(26,087)
========
</TABLE>
58
<PAGE> 59
--------------------------------------------------------------------------------
8. FUTURES CONTRACTS
The Bond and Stock Funds may purchase and sell futures contracts for hedging
their investments against changes in value, to manage cash flow, to attempt to
enhance income, or as a temporary substitute for purchases or sales of actual
securities. These Funds may also buy or write put or call options on these
futures contracts.
The purpose of the acquisition or sale of a futures contract is to protect the
involved Fund from adverse fluctuations in interest rates or in market or
currency indices and the resulting negative valuation effect on the Fund
investments without actually buying or selling securities.
Upon engaging in a futures contract, the Fund is required to deposit with the
broker an amount of cash or cash equivalents equal to a certain percentage of
the contract amount (initial margin). Subsequent payments (variation margins) to
and from the Fund or the broker, must be made daily as the price of the security
or the currency rate underlying the futures contract fluctuates, making the long
or short position in the futures contract more or less valuable. The Fund
recognizes a realized gain or loss when the contract is closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statements of
Investments. The Statements of Assets and Liabilities reflects a receivable or
payable for the daily mark to market variation margin.
Futures contracts (and related options) involve risks to which the Bond and
Stock Funds would otherwise not be subject. Inherent risks include the
possibility of imperfect correlation between the price of the futures contract
or option and the price of the securities or indices being hedged and the
possible absence of a liquid secondary market for any particular instrument at
any time.
As of June 30, 2000, the Atlas Strategic Income Fund had outstanding futures
contracts to purchase and sell debt securities as follows:
<TABLE>
<CAPTION>
Number of Unrealized
Expiration Futures Valuation as Appreciation/
Date Contracts of 6/30/00 (Depreciation)
---------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Purchase:
--------------------
U.S. Treasury Notes......................................... 09/00 42 $4,138,469 $107,015
--------
Contracts to Sell:
---------------
United Kingdom Government Bonds............................. 09/00 32 $ 113,740 (2,501)
--------
Net unrealized gain......................................... $104,514
========
</TABLE>
9. OPTIONS TRANSACTIONS
The Bond and Stock Funds may purchase and sell covered exchange listed put and
call options on securities, indices and currencies. These options my be on debt
securities, financial indices and foreign currencies (Bond Funds) and on stocks,
stock and financial indices, foreign government securities or foreign currencies
(Stock Funds).
A Fund may sell covered put options and call options for additional premium
income, buy put options in an effort to protect the value of a security in its
portfolio against decline in value and buy call options in an effort to protect
against a price increase of securities or currencies it intends to purchase. The
Bond and Stock Funds may also make offsetting transactions to close open
positions.
A Fund may write a put option as an alternative to purchasing a security. A
put option gives the holder the right to sell the underlying security to the
Fund at any time during the option period at a predetermined exercise price.
Writing 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
59
<PAGE> 60
Notes to Financial Statements June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
expires or is canceled in a closing transaction, the Fund will realize a gain or
loss depending on whether the cost of the closing transaction, if any, is lesser
than or greater than the premium originally received.
Securities designated to cover outstanding call options are noted in the
Statements of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a
footnote to the Statements of Investments. Options written are reported as a
liability in the Statements of Assets and Liabilities. Gains and losses are
reported in the Statements of Operations.
The risk in writing a call option is that the Fund foregoes the opportunity
for profit if the value of the underlying security increases and the option is
exercised. The risk in writing a put option is that the Fund is exposed to a
potential loss if the value of the underlying security declines and the option
is exercised. Owning an option exposes the Fund to the risk of paying a premium
whether the option is exercised or not. Additional risk exists if an illiquid
secondary market does not allow for entering into a closing transaction.
Written option transactions in the Funds for the six months ended June 30,
2000 were as follows:
<TABLE>
<CAPTION>
Call Options Put Options
------------------------- ------------------------
Number of Amount of Number of Amount of
Options Premiums Options Premiums
-----------------------------------------------------
<S> <C> <C> <C> <C>
Strategic Income Fund:
-----------------------
Options outstanding at December 31, 1999.................... 36,000,000 $ 3,728 862,470 $ 14,279
Options written............................................. 550 30,693 170 751
Options closed or expired................................... (36,000,460) (33,125) (862,640) (15,030)
Options exercised........................................... 0 0 0 0
----------- -------- -------- --------
Options outstanding at June 30, 2000........................ 90 $ 1,296 0 $ 0
=========== ======== ======== ========
</TABLE>
10. ILLIQUID AND RESTRICTED SECURITIES
The Funds may invest in securities that are illiquid or restricted. Restricted
securities are not registered under the Securities Act of 1933, are often
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. A security may also be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. No Fund will invest in illiquid or
restricted assets if, immediately after such purchase, the value thereof, as
determined under methods approved by the Board of Directors, would exceed 10% of
its net assets. At June 30, 2000, the value of these securities and the
resulting percentage of net assets amounted to $82,110 or .28% in the Atlas
Emerging Growth Fund and $3,645,293 or 4.89% in the Atlas Strategic Income Fund.
Certain Funds own restricted securities which have been determined to be liquid.
These securities are not included in the 10% limitation mentioned above and are
identified in the Statements of Investments.
60
