[LOGO OMITTED]
{GRAPHIC OMITTED]
Semiannual
Report to
Shareholders
July 31, 1996
Shares of any of The Achievement Funds are:
(BULLET) not obligations or deposits of, or guaranteed by, First Security
Corporation or any of its banks or non-bank subsidiaries;
(BULLET) not federally insured by the FDIC, the Federal Reserve Board or any
other government agency;
(BULLET) subject to investment risk, including the possible loss of principal.
This report and the financial statements contained
herein are submitted for the general information of
the shareholders of the Funds. This report is not
authorized for distribution to prospective investors
in a Fund unless preceded or accompanied by a
current prospectus.
For more information, including a
prospectus, call 1-800-472-0577.
ACH-F-016-02
<PAGE>
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TABLE OF CONTENTS
Letter to Shareholders .............................2
Fund Objectives ....................................3
Investment Adviser's Report ........................4
Financial Statements ...............................8
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The Achievement Funds
Semi-Annual Report
JULY 31, 1996
STOCK AND BALANCED FUNDS
The Achievement Equity Fund
The Achievement Balanced Fund
BOND FUNDS
The Achievement Intermediate Term Bond Fund
The Achievement Short Term Bond Fund
The Achievement Short Term Municipal Bond Fund
The Achievement Idaho Municipal Bond Fund
[LOGO OMITTED]
<PAGE>
Letter to Shareholders
EARLIER THIS YEAR IN OUR ANNUAL REPORT TO YOU, WE COMMENTED ON THE CYCLICAL
NATURE OF BOTH THE EQUITY AND BOND MARKETS AND HOW IT MAY BE VIEWED FROM A SHORT
TERM INVESTOR AND A LONG TERM INVESTOR'S PERSPECTIVE. IN FISCAL 1995-1996, WE
SAW THE MARKET SOAR TO NEW HIGHS; WHILE IN THE FIRST HALF OF 1996 WE HAVE SEEN A
MUCH MORE TURBULENT MARKET. THE HIGHS OF THE FIRST QUARTER WERE PARTIALLY
NEGATED BY THE MARKET CORRECTION WE EXPERIENCED IN JULY 1996. TO THE SHORT TERM
INVESTOR THIS MAY BE ALARMING; HOWEVER, TO THE LONG TERM INVESTOR THE UPS AND
DOWNS OF 1996 YEAR TO DATE HAVE BEEN EXPECTED, IF NOT SEEN AS LONG OVERDUE.
WE BELIEVE, THAT YOU, OUR ACHIEVEMENT FUND INVESTOR, UNDERSTANDS THIS LONGER
TERM VIEW, AS DEMONSTRATED BY THE NET INCREASE WE HAVE SEEN SO FAR IN 1996 IN
THE FUNDS' INVESTMENT LEVELS. ALSO, OUR INVESTMENT ADVISER, FIRST SECURITY
INVESTMENT MANAGEMENT, INC., UNDERSTANDS THE IMPORTANCE OF THIS VIEWPOINT AS
THEY SEEK TO BUILD SHAREHOLDER VALUE OVER THE LONG TERM.
WHILE THE REMAINDER OF 1996 IS UNCERTAIN GIVEN THE CURRENT MARKET VOLATILITY AND
THE UPCOMING PRESIDENTIAL ELECTION, WITH ITS INHERENT POLITICAL AND ECONOMIC
OVERTONES, WE ARE COMMITTED TO A PROGRAM OF RELATIVE STABILITY AS TO FUND
PERFORMANCE. OUR VIEW IS FOCUSED TOWARDS GROWING THE ACHIEVEMENT FUND FAMILY OF
FUNDS BOTH THROUGH A CONTINUING PROGRAM OF SALES AND MARKETING AND THROUGH THE
INTRODUCTION OF NEW FINANCIAL SERVICES PROGRAMS WHICH WE ARE DEVELOPING WITH THE
ASSISTANCE OF OUR VARIOUS DISTRIBUTION CHANNEL PARTNERS. THESE NEW PROGRAMS WILL
BE GEARED TOWARD ADDRESSING THE INVESTMENT GOALS OF THE CUSTOMERS OF OUR
DISTRIBUTION CHANNELS AND WILL CONTINUE TO FEATURE THE ACHIEVEMENT FUNDS. THE
ACCOMPANYING MATERIALS INCLUDE A MORE DETAILED ANALYSIS OF THE FINANCIAL MARKETS
BY STERLING K. JENSON, PRESIDENT OF FIRST SECURITY INVESTMENT MANAGEMENT, INC.,
OUR FUND'S INVESTMENT ADVISER.
OUR SHAREHOLDER SERVICES PERSONNEL ARE AVAILABLE TO ASSIST YOU BY CALLING
1 (800) 472-0577, AS WELL AS YOUR BROKER, TRUST OFFICER OR OTHER INVESTMENT
PROFESSIONAL. WE WELCOME YOUR COMMENTS AND QUESTIONS AND APPRECIATE YOUR LOYALTY
AND COMMITMENT.
/S/FREDERICK A. MORETON, JR. /S/JOHN L. RUDISILL
FREDERICK A. MORETON, JR. JOHN L. RUDISILL
CHAIRMAN OF THE BOARD OF TRUSTEES SENIOR VICE PRESIDENT AND MANAGER
The Achievement Funds Trust Mutual Fund Center
First Security Corporation
2
<PAGE>
Fund Objectives THE ACHIEVEMENT FUNDS TRUST
STOCK AND BALANCED FUNDS
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THE ACHIEVEMENT EQUITY FUND
To provide long-term capital appreciation with current income as a secondary
consideration in selecting portfolio securities.
THE ACHIEVEMENT BALANCED FUND
To provide both income and capital appreciation consistent with prudent
investment risk.
BOND FUNDS
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THE ACHIEVEMENT INTERMEDIATE TERM BOND FUND
To provide income consistent with prudent investment risk and maintenance of
appropriate liquidity.
THE ACHIEVEMENT SHORT TERM BOND FUND
To preserve principal value and maintain a high degree of liquidity while
providing current income.
THE ACHIEVEMENT SHORT TERM MUNICIPAL BOND FUND
To provide as high a level of current income that is exempt from federal
income tax as is consistent with preservation of capital.
THE ACHIEVEMENT IDAHO MUNICIPAL BOND FUND
To provide as high a level of current income exempt from federal and Idaho
income taxes as is consistent with preservation of capital.
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Terms You Need to Know
TOTAL RETURN is the change in value of an investment from the beginning to the
end of a period, assuming the reinvestment of all distributions.
NET ASSET VALUE (NAV) is the market worth of one share of a mutual fund. This
figure is derived by taking a fund's total assets - securities, cash and any
accrued earnings - deducting liabilities, and dividing by the number of shares
outstanding.
YIELD is the percentage rate at which a fund's portfolio earns income, based on
a formula set by the Securities and Exchange Commission.
3
<PAGE>
Investment Adviser's Report
Views about the economic outlook change constantly, as demonstrated by the
day-to-day movement of stock and bond prices. In the beginning of 1996, the
economy was thought to be weak with the government shutdown and extremely poor
weather in the East. The Federal Reserve cut interest rates in January another
one-fourth percent to help stimulate the economy. Beginning in March, however,
economic statistics began to point upward and unemployment fell. Immediately,
the bond markets began to fear inflation and interest rates started to rise.
Commodity prices, especially in the grains and oil futures, soared, fueling
further anxiety of heightened inflation. As a consequence, bond prices declined
as interest rates rose over one percent. Stock prices, bolstered by rising
earnings in the first quarter, began to trade sideways as earnings were offset
by increasing interest rates.
Gross Domestic Product (GDP) growth in the second quarter seemed to confirm
expectations of an overheating economy. First quarter growth of 2.0% was
supplanted by the second quarter's increase of 4.2%. Immediately economists were
clamoring for the Federal Reserve to begin raising short term interest rates to
stem the growth tide and lessen the potential for inflation. The call for a Fed
funds rate hike was nearly unanimous in late June and early July.
Beginning in July, the fireworks, detonated to celebrate America's birthday,
extended into the markets on July 5th when the government released a stronger
than expected June labor report. Both bonds and stocks plunged in value with the
report that non-farm payrolls rose by 239,000, the civilian jobless rate fell
from 5.6% to 5.3%, and average hourly earnings surged by 0.8%. The bond market
can't stand this type of prosperity. The Federal Reserve chose not to raise
rates in July because evidence regarding economic growth still continued to be
mixed in spite of the labor report. Department store and automobile sales have
weakened recently, capital spending growth appears to be on the decline, and
home-building appears to have subsided. The major catalysts for the strong GDP
growth in the second quarter, increasing inventories and consumer spending,
should moderate through the remainder of the year. Consumer debt and personal
bankruptcies are at all time highs and it appears that banks and credit card
companies are beginning to tighten their limits for credit.
IN SUMMARY
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We expect growth to trend lower during the second half of the year toward the 2%
level or lower with decreasing capital spending and a less spendthrift consumer.
Interest rates in early August have been trending down with recent moderation in
economic reports. Earnings for the second quarter have been generally favorable
and the stock market has recaptured the 400 point slide experienced in early
July. At about 5700, the Dow appears to be fairly valued. Interest rates will
probably stay in a trading range for the remainder of 1996 with the 30 year U.S.
Treasury bond yield bound in a 6.50% to 7.00% level. At First Security
Investment Management, Inc., we continue to have a long-term, optimistic outlook
for the securities market. We manage The Achievement Funds carefully, and
monitor them continuously, to provide the best returns available within the
guidelines and constraints controlling the risk profile of each Fund.
4
<PAGE>
THE ACHIEVEMENT EQUITY FUND THE ACHIEVEMENT FUNDS TRUST
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The stock market rose early in 1996 through mid-March and has traded sideways in
a choppy fashion since then. Good corporate earnings reports have been offset by
higher interest rate levels. In this uncertain period Consumer Staple stocks
performed well while Technology stocks sold off through mid-July. Using our
"growth at a price" methodology of evaluating opportunities for investment, we
have reduced our Consumer Staple sector weighting as stocks reached our target
prices and have increased our Technology positions as good values have presented
themselves. We see significant return potential in the telecommunications
equipment sector, especially, as represented by our investments in Qualcomm, DSC
Communications, Allen Group, and Analog Devices.
The factors that we look for in selecting stock investments include high
earnings growth rates both near term and long term, price/earnings ratios in the
lower end of historic ranges for each company, good managements that are able to
increase return-on-equity through growing revenues, margins and asset turnover,
and in general, stocks that may have been overlooked by Wall Street analysts.
The Achievement Equity Fund invests in medium to large capitalization companies
that have been seasoned through many business cycles.
The portfolio is well diversified, with each stock averaging less than 2 percent
of the portfolio's total market value. Sector weightings are measured against
the S&P 500 Index weightings, with moderate over-or-under weightings given
according to our economic outlook and stock market valuations. We expect to find
future values in two ways; through stock selection using the investment
adviser's proprietary methodologies and through sector weightings of the
portfolio.
THE ACHIEVEMENT BALANCED FUND
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As investors and market strategists struggled with economic data that gave
conflicting signals, both stocks and bonds gained very little ground. During
this volatility the Balanced Fund maintained a steady course and slightly
reduced the bond exposure in favor of cash equivalents. The fund's asset
allocation as of July 31, 1996 is 57% equity, 36% bonds and 7% cash equivalents.
The Funds equity portion is currently overweighted in Technology and
underweighted in Consumer Staples. Our "growth at a price" valuation is telling
us that Technology stocks offer some of the best values in the market while the
Consumer Staples stocks are over valued relative to their earnings growth rates.
The Funds sector weight in Technology and Consumer Staples is currently 25.1%
and 13.6% compared with the S&P 500 at 15.2% and 22.1% respectively.
The bond allocation of the portfolio is structured with a slightly longer
maturity and duration than the Lehman Intermediate Government Corporate Bond
Index. The latest economic data shows very little inflation and a slowing
economy. Under this environment we would expect interest rates to remain stable
with a downward bias over the next year. The longer maturity and duration of the
Fund's bond allocation should benefit in this forecast.
5
<PAGE>
Looking forward we expect that both the bond and stock markets will remain
volatile until a clearer picture of the economy emerges. The stock market is at
moderately high levels relative to earnings growth and the bond market is ready
to decline at the first hint of inflation. The Achievement Balanced Fund will
change its asset allocation mix, within the limitations outlined in the
prospectus, to take advantage of whichever way the economy heads over the next
year.
THE INTERMEDIATE TERM BOND FUND
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The Fund was structured at the beginning of the year to take advantage of an
expected continued decline in interest rates. This position was based upon the
expectation for continued slow economic growth, low inflation and the likelihood
of a balanced budget amendment. Inflation has remained under control thus far,
however economic growth has been stronger than expected and the balanced budget
amendment was not agreed upon causing general upward movement in interest rates
through the first seven months of the year. The strength of the economy and fear
of potential future inflation led many investors to expect Fed tightening to
take place at several points during the summer season. The ten and thirty year
U.S. Treasury bond yields moved up from 5.57% and 5.95% at the end of 1995 to
6.79% and 6.97% respectively at the end of July 1996. Most recently there have
been indications of a slower growth economy resulting in interest rates
declining off their peaks. Looking forward we expect interest rates to remain in
a trading range of 6.5% to 7.0% for the thirty year U.S. Treasury through the
end of the year with a general downward bias as we move into 1997. This
expectation is again built upon low inflation and slow economic growth. Because
of this expectation the Fund maintains a duration and weighted average maturity
as of July 31, 1996, somewhat longer than the comparative index:
MODIFIED WEIGHTED
DURATION AVG. MAT.
-------- ---------
Intermediate Bond Fund 3.91 4.81
Lehman Intermediate
Gov./Corp. 3.33 4.27
The asset allocation at the end of July 1996 is approximately the same as it was
at the end of 1995; 53% Treasuries, 7% Government Agencies, 38% corporates and
2% in cash equivalents.
THE SHORT TERM BOND FUND
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As interest rates increased during the first half of the year the Short Term
Bond Fund was effected much less negatively than were longer maturity and
duration portfolios. During this period of time the weighted average maturity
declined slightly from 1.26 years to 1.12 years and the modified duration from
1.17 years to 1.03 years. The short term nature and the slight decline in the
interest rate sensitivity measures acted to keep volatility low while preserving
principal value.
Due to our expectation for interest rates to remain in a relatively flat trading
range through the remainder of the year and for a downward bias into 1997 and
due to low inflation and a slow growth economy, the weighted average maturity
and duration will likely be increased somewhat as we move through the second
half of 1996 in order to better take advantage of the interest rate move and to
maintain income production.
The asset allocation was adjusted slightly over the period to produce more
income as the corporate weighting increased from 59% at the end of 1995 to 65%
at the end of July 1996.
6
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
THE ACHIEVEMENT SHORT TERM
MUNICIPAL BOND FUND
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Three year "A" rated municipal yields rose 50 basis points during February and
March, the first two months of the Fund's current fiscal year. The result was a
1.17% decline in the net asset value of the Fund during the first quarter. Net
asset value remained flat during the second fiscal quarter.
The entire municipal market suffered a set back late in the winter, largely due
to "Flat Tax Fever" that resulted from the political rhetoric of Steve Forbes.
Nevertheless, during the first half of calendar year 1996, the Achievement Short
Term Municipal Bond Fund ranked 25th in the entire universe of municipal bond
mutual funds in the United States with a positive return of +0.91% (Source:
Money/ Morningstar). During this time of adversity, the Fund proved that it was
a good safe haven for the tax-exempt investor.
We expect that the financial markets will remain fairly stable for the balance
of this election year as any action by the Federal Reserve seems unlikely at
this time. The Fund is therefore "made to order" for conservative, high-tax
bracket investors who desire stability of principal coupled with steady, monthly
cash flow that is exempt from federal income taxes.
THE ACHIEVEMENT IDAHO
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
On January 31, 1996, the Fund had a net asset value of $10.80 per share. By the
end of our fiscal first half, the net asset value per share had declined to
$10.41, a drop of 3.61%.
All of this loss occurred in the February through April period, much of it
brought about by Republican Presidential Candidate Steve Forbes' campaign, which
was largely based upon the "flat tax" concept. The flat tax as presented by
Forbes would destroy municipal financing as we know it today. With the departure
of Mr. Forbes from the scene, the tax-exempt market has stabilized.
At this time, "AAA" municipals are rich relative to treasuries, with 20-year
yields at 81.4% of similar maturity treasury bonds. The range over the past 12
months has been 80.7% to 90.1%. This reflects superior performance by
tax-exempts relative to treasuries in recent weeks. However, as the 30 day
visible supply of new bonds is one-third of the level of mid-March, and the
supply of treasuries and corporates is not expected to abate, it seems likely
that premium "richness" can be maintained.
The Fund's weighted average maturity has been kept at about 11 years, and an
effort has been made to diversify the holdings as much as possible to represent
as many Idaho issuers and communities as possible. The Fund has strictly adhered
to its investment objective of providing a steady flow of income that is exempt
from both Federal and State income taxes to shareholders. Should the U.S.
economy finally slow down in 1997, as many economists deem possible, the NAV
should recover to the high levels of December, 1995. In the meantime, enjoy the
tax-free income flow!!
/s/Sterling K. Jenson
Sterling K. Jenson
PRESIDENT
First Security Investment Management, Inc.
Investment Adviser
7
<PAGE>
JULY 31, 1996 (UNAUDITED)
Statement of Net Assets
EQUITY FUND
{GRAPHIC OMITTED}
A pie chart depicting the percentage of portfolio assets of the Achievement
Equity Fund.
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MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------
COMMON STOCKS -- 96.3%
AGRICULTURE -- 2.6%
Dole Food 100,000 $ 4,013
-------
AIR TRANSPORTATION -- 1.7%
Delta Air Lines 38,000 2,655
-------
AIRCRAFT -- 1.6%
Lockheed Martin 30,000 2,486
-------
ELECTRONICS -- 2.2%
Allen Group 225,500 3,411
-------
BANKS -- 5.8%
Banc One 92,000 3,186
BankAmerica 36,500 2,911
NationsBank 33,000 2,834
-------
8,931
-------
CHEMICALS -- 4.6%
B.F. Goodrich 118,660 4,301
Monsanto 87,500 2,734
-------
7,035
-------
COMMUNICATIONS EQUIPMENT -- 4.1%
DSC Communications* 207,000 6,210
-------
COMPUTERS & SERVICES -- 0.9%
Cisco Systems* 25,850 1,338
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MARKET
DESCRIPTION SHARES VALUE (000)
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CONCRETE & MINERAL PRODUCTS-- 1.6%
Armstrong World Industries 45,000 $ 2,498
-------
DRUGS -- 3.8%
Forest Laboratories* 84,000 2,867
Merck 19,000 1,221
Smithkline Beecham ADR 32,919 1,769
-------
5,857
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ELECTRICAL UTILITIES -- 3.5%
FPL Group 48,000 2,178
Texas Utilities 75,000 3,150
-------
5,328
-------
ENTERTAINMENT -- 1.3%
Walt Disney 36,000 2,003
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FINANCIAL SERVICES -- 3.3%
American Express 64,000 2,800
Federal National Mortgage
Association 68,000 2,159
Imperial Credit Industries* 3,862 113
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5,072
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FOOD, BEVERAGE & TOBACCO-- 2.3%
ConAgra 39,000 1,658
PepsiCo 61,000 1,929
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3,587
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GAS/NATURAL GAS -- 2.2%
Coastal 89,000 3,315
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INSURANCE -- 3.7%
General Re 26,000 3,816
United Healthcare 56,800 1,917
-------
5,733
-------
MACHINERY -- 8.7%
Case 84,000 3,717
Deere 35,258 1,260
General Electric 38,600 3,180
Harnischfeger Industries 80,000 2,480
Tyco Labs 65,600 2,690
-------
13,327
-------
MEDICAL PRODUCTS & SERVICES -- 5.0%
Columbia/HCA Healthcare 79,000 4,049
Medtronic 75,000 3,553
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7,602
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THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
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MARKET
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------
METALS & MINING -- 2.1%
Titanium Metals 131,000 $ 3,177
--------
MISCELLANEOUS BUSINESS SERVICES -- 8.5%
Altera* 185,000 7,585
Electronic Data Systems 42,000 2,221
Microsoft* 16,000 1,886
Stratus Computer* 75,105 1,380
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13,072
--------
PETROLEUM & FUEL PRODUCTS -- 1.9%
Schlumberger 37,100 2,968
--------
PETROLEUM REFINING -- 4.8%
Amoco 35,000 2,341
Exxon 20,000 1,645
Mobil 30,000 3,311
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7,297
--------
RETAIL -- 6.3%
Albertson's 50,700 2,079
Home Depot 60,000 3,030
Sears Roebuck 56,000 2,296
Wendys International 130,000 2,210
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9,615
--------
TRUCKING -- 1.4%
USFreightways 125,000 2,211
--------
SEMI-CONDUCTORS/INSTRUMENTS-- 4.1%
Analog Devices* 114,340 2,387
Intel 37,000 2,780
Texas Instruments 27,000 1,168
--------
6,335
--------
STEEL & STEEL WORKS -- 1.6%
Aluminum Company of America 40,000 2,320
--------
TELEPHONES & TELECOMMUNICATION -- 6.7%
A T & T 54,000 2,815
MCI Communications 126,000 3,103
Qualcomm* 100,000 4,332
--------
10,250
--------
TOTAL COMMON STOCKS
(Cost $138,506) 147,646
--------
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SHARES/FACE MARKET
DESCRIPTION AMOUNT (OOO) VALUE (000)
- ------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST -- 1.0%
Security Capital Industrial Trust 90,000 $ 1,609
--------
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $1,419) 1,609
--------
CASH EQUIVALENTS -- 2.6%
SEI Daily Income Trust Money
Market Portfolio $2,062 2,062
SEI Daily Income Trust Prime
Obligation Portfolio 1,942 1,942
--------
TOTAL CASH EQUIVALENTS
(Cost $4,004) 4,004
--------
TOTAL INVESTMENTS -- 99.9%
(Cost $143,929) 153,259
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% 128
--------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 12,385,909 outstanding
shares of beneficial interest 129,539
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 282,538 outstanding shares of
beneficial interest 3,505
Undistributed net investment income 12
Accumulated net realized gain on investments 11,001
Net unrealized appreciation on investments 9,330
--------
TOTAL NET ASSETS -- 100.0% $153,387
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $12.11
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $12.11
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($12.11(DIVIDE)95.5%) $12.68
========
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* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9
<PAGE>
JULY 31, 1996 (UNAUDITED)
Statement of Net Assets
BALANCED FUND
{GRAPHIC OMITTED}
A pie chart depicting the percentage of portfolio assets of the Achievement
Balanced Fund.
- ------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 24.1%
U.S. Treasury Notes
7.250%, 11/30/96 $ 2,500 $ 2,513
8.125%, 02/15/98 2,000 2,058
7.875%, 04/15/98 2,500 2,568
7.000%, 04/15/99 2,500 2,539
8.000%, 08/15/99 2,000 2,085
7.750%, 11/30/99 2,500 2,596
7.750%, 02/15/01 2,500 2,616
7.875%, 08/15/01 2,500 2,636
7.500%, 05/15/02 2,500 2,606
6.250%, 02/15/03 2,500 2,446
7.250%, 05/15/04 2,500 2,579
7.875%, 11/15/04 2,500 2,674
7.500%, 02/15/05 2,000 2,094
6.500%, 08/15/05 2,000 1,963
U.S. Treasury Bond
5.625%, 02/15/06 1,000 922
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $34,085) 34,895
-------
- ------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (OOO) VALUE (000)
- ------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 1.7%
Federal Home Loan Bank
6.490%, 09/08/97 $ 2,500 $ 2,513
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,463) 2,513
-------
ASSET-BACKED SECURITIES -- 0.9%
Olympic Automobile Receivables
Trust Series 1995-E Class A5
5.950%, 11/15/01 1,325 1,301
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,333) 1,301
-------
CORPORATE BONDS -- 9.3%
Associates of North America MTN
8.420%, 01/05/00 2,000 2,095
Banc One
7.250%, 08/01/02 1,500 1,509
BankAmerica
7.125%, 05/12/05 2,000 1,955
Bear Stearns MTN
5.807%, 12/03/99 2,000 2,000
Exxon Capital
7.875%, 08/15/97 2,000 2,037
Ford Motor Credit
7.750%, 10/01/99 2,000 2,050
Santander Financial Issuances
Limited YB
7.000%, 04/01/06 1,000 963
Seagram
6.500%, 04/01/03 1,000 961
-------
TOTAL CORPORATE BONDS
(Cost $13,447) 13,570
-------
COMMON STOCKS -- 56.1%
AGRICULTURE -- 1.7%
Dole Food 60,000 2,408
-------
AIR TRANSPORTATION -- 0.9%
Delta Air Lines 21,000 1,467
-------
AIRCRAFT -- 1.1%
Lockheed Martin 20,000 1,658
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- ------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------
BANKS -- 3.4%
Banc One 46,000 $ 1,593
BankAmerica 19,000 1,515
NationsBank 21,000 1,803
-------
4,911
-------
CHEMICALS -- 2.4%
B.F. Goodrich 64,100 2,324
Monsanto 37,500 1,172
-------
3,496
-------
COMMUNICATIONS EQUIPMENT -- 2.7%
DSC Communications* 130,000 3,900
-------
COMPUTERS & SERVICES -- 0.4%
Cisco Systems* 11,044 572
-------
CONCRETE & MINERAL PRODUCTS -- 1.1%
Armstrong World Industries 27,500 1,526
-------
DRUGS -- 2.4%
Forest Laboratories* 43,500 1,484
Merck 13,000 835
Smithkline Beecham ADR 20,576 1,106
-------
3,425
-------
ELECTRICAL UTILITIES -- 1.9%
FPL Group 26,000 1,180
Texas Utilities 40,000 1,680
-------
2,860
-------
ELECTRONICS -- 1.2%
Allen Group 119,000 1,800
-------
ENTERTAINMENT -- 0.8%
Walt Disney 20,000 1,113
-------
FINANCIAL SERVICES -- 2.0%
American Express 38,000 1,663
Federal National Mortgage
Association 40,000 1,270
Imperial Credit Industries* 2,138 63
-------
2,996
-------
FOOD, BEVERAGE & TOBACCO-- 1.3%
ConAgra 21,000 893
PepsiCo 30,000 949
-------
1,842
-------
- -----------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------------
GAS/NATURAL GAS -- 1.2%
Coastal 46,000 $1,714
------
INSURANCE -- 2.2%
General Re 14,500 2,128
United Healthcare 30,500 1,029
------
3,157
------
MACHINERY -- 5.8%
Case 27,000 1,195
Deere 19,914 712
General Electric 20,000 1,648
Harnischfeger Industries 57,750 1,790
Tyco Labs 74,000 3,034
------
8,379
------
MEDICAL PRODUCTS & SERVICES -- 2.6%
Columbia/HCA Healthcare 43,000 2,204
Medtronic 33,750 1,599
------
3,803
------
METALS & MINING -- 1.1%
Titanium Metals 68,000 1,649
------
MISCELLANEOUS BUSINESS SERVICES -- 4.7%
Altera* 92,000 3,772
Electronic Data Systems 24,000 1,269
Microsoft* 8,000 943
Stratus Computer* 45,895 843
------
6,827
------
PETROLEUM & FUEL PRODUCTS-- 0.3%
Schlumberger 5,000 400
------
PETROLEUM REFINING -- 3.1%
Amoco 20,000 1,338
Exxon 12,000 987
Mobil 20,000 2,208
------
4,533
------
RETAIL -- 4.2%
Albertson's 46,000 1,886
Home Depot 34,000 1,717
Sears Roebuck 28,000 1,148
Wendys International 75,000 1,275
------
6,026
------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11
<PAGE>
JULY 31, 1996 (UNAUDITED)
Statement of Net Assets
- ------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (OOO) VALUE (000)
- ------------------------------------------------------------------------
TRUCKING -- 0.6%
USFreightways 50,000 $ 884
-------
SEMI-CONDUCTORS/INSTRUMENTS -- 2.4%
Analog Devices* 69,340 1,447
Intel 20,000 1,500
Texas Instruments 12,000 519
-------
3,466
-------
STEEL & STEEL WORKS -- 0.9%
Aluminum Company of America 22,000 1,276
-------
TELEPHONES & TELECOMMUNICATION -- 3.7%
A T & T 29,500 1,538
MCI Communications 55,000 1,354
Qualcomm* 56,000 2,429
-------
5,321
-------
TOTAL COMMON STOCKS
(Cost $75,174) 81,409
-------
REAL ESTATE INVESTMENT TRUST -- 0.6%
Security Capital Industrial Trust 46 828
-------
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $725) 828
-------
CASH EQUIVALENTS -- 6.5%
SEI Daily Income Trust Money
Market Portfolio 4,762 4,762
SEI Daily Income Trust Prime
Obligation Portfolio 4,599 4,599
-------
TOTAL CASH EQUIVALENTS
(Cost $9,361) 9,361
-------
TOTAL INVESTMENTS -- 99.2%
(Cost $136,588) 143,877
-------
OTHER ASSETS AND LIABILITIES, NET-- 0.8% 1,133
-------
- -----------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- -----------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class (unlimited
authorization -- no par value) based on
12,626,589 outstanding shares of beneficial
interest $128,060
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value) based on 235,156
outstanding shares of beneficial interest 2,715
Undistributed net investment income 324
Accumulated net realized gain on investments 6,622
Net unrealized appreciation on investments 7,289
--------
TOTAL NET ASSETS -- 100.0% $145,010
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $11.28
========
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE -- RETAIL CLASS A $11.26
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($11.26(DIVIDE)95.5%) $11.79
========
- --------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
MTN -- MEDIUM TERM NOTE
ADR -- AMERICAN DEPOSITORY RECEIPT
YB -- YANKEE BOND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
JULY 31, 1996 (UNAUDITED) THE ACHIEVEMENT FUNDS TRUST
Statement of Net Assets
INTERMEDIATE TERM BOND FUND
{GRAPHIC OMITTED}
A pie chart depicting the percentage of portfolio assets of the Achievement
Intermediate Term Bond Fund.
- -------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
CORPORATE BONDS -- 33.6%
American General Finance
7.250%, 04/15/00 $1,000 $1,010
American Home Products
7.700%, 02/15/00 1,000 1,026
Associates Corporation of North
America MTN
6.810%, 08/03/01 1,000 990
7.540%, 04/14/04 1,000 1,014
AT&T
6.750%, 04/01/04 1,000 978
BankAmerica
7.125%, 05/01/06 2,000 1,945
Bear Stearns MTN
7.740%, 02/06/97 1,000 1,009
Bell Atlantic Financial
6.625%, 11/30/97 1,000 1,004
Chase Manhattan
8.125%, 06/15/02 1,000 1,046
Citicorp
7.125%, 06/01/03 1,000 993
Commercial Credit
6.875%, 05/01/02 1,000 989
CSR America
6.875%, 07/21/05 2,000 1,930
CSX Transportation
7.540%, 03/15/03 1,000 1,020
- -------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Dow Capital BV YB
7.125%, 01/15/03 $ 1,000 $ 988
First Union
7.050%, 08/01/05 1,000 970
Ford Motor Credit
8.000%, 06/15/02 1,000 1,041
7.750%, 03/15/05 1,000 1,015
General Electric Capital MTN
6.840%, 04/26/98 1,000 1,006
GMAC MTN
7.250%, 05/15/03 1,000 996
Grand Metro
7.125%, 09/15/04 1,000 990
Household Finance
7.650%, 05/15/07 1,000 1,013
International Lease
7.000%, 06/01/98 1,000 1,008
J.C. Penney MTN
7.050%, 05/23/05 1,000 976
John Deere Capital
7.140%, 09/15/98 1,000 1,013
JP Morgan
7.250%, 01/15/02 1,000 1,010
MCI Communications
7.125%, 01/20/00 1,000 1,005
NationsBank
7.625%, 04/15/05 1,000 1,013
Norwest
7.700%, 11/15/97 1,000 1,018
Pacific Bell
7.000%, 07/15/04 1,000 984
Philip Morris
7.500%, 01/15/02 1,000 1,011
Ryder Systems
7.340%, 11/01/00 1,040 1,052
Santander Financial Issuances
Limited YB
7.000%, 04/01/06 2,000 1,925
Sara Lee MTN
7.400%, 03/22/02 1,000 1,020
Society National Bank
7.250%, 06/01/05 1,000 988
Soutwestern Bell Telephone MTN
6.250%, 03/12/01 1,150 1,117
Union Electric
6.750%, 10/15/99 1,000 1,000
Waste Management
7.700%, 10/01/02 1,000 1,030
-------
TOTAL CORPORATE BONDS
(Cost $40,904) 40,143
-------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
13
<PAGE>
JULY 31, 1996 (UNAUDITED)
Statement of Net Assets
- ---------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 52.5%
U.S. Treasury Notes
6.500%, 05/15/97 $ 1,000 $ 1,005
6.500%, 08/15/97 2,000 2,011
7.375%, 11/15/97 1,000 1,016
7.250%, 02/15/98 4,000 4,065
6.250%, 06/30/98 2,000 2,001
7.125%, 10/15/98 4,000 4,073
6.500%, 04/30/99 2,000 2,007
6.750%, 06/30/99 5,000 5,048
7.125%, 09/30/99 4,000 4,077
7.750%, 01/31/00 1,500 1,559
7.125%, 02/29/00 4,000 4,080
6.750%, 04/30/00 3,000 3,024
6.250%, 08/31/00 8,000 7,918
6.125%, 09/30/00 1,000 985
7.750%, 02/15/01 2,500 2,616
6.375%, 03/31/01 2,000 1,984
7.875%, 08/15/01 1,500 1,582
7.500%, 11/15/01 1,000 1,039
6.250%, 02/15/03 4,500 4,403
7.250%, 08/15/04 5,000 5,156
7.500%, 02/15/05 1,000 1,047
6.500%, 08/15/05 1,000 981
U.S. Treasury Bond
7.625%, 02/15/07 1,000 1,034
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $63,455) 62,711
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.8%
Federal Home Loan Bank
7.190%, 04/27/01 1,000 1,015
7.280%, 07/25/01 1,000 1,019
7.390%, 08/22/01 1,000 1,024
Federal National Mortgage Association
7.090%, 10/14/97 1,000 1,012
7.050%, 12/10/98 1,000 1,013
6.625%, 04/18/01 1,000 994
6.850%, 04/05/04 1,000 989
7.520%, 08/24/05 1,000 993
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $8,253) 8,059
-------
ASSET-BACKED SECURITIES -- 3.3%
Olympic Automobile Receivables
Trust Series 1995-E Class A5
5.950%, 11/15/01 2,000 1,963
- ---------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------------------
Olympic Automobile Receivables
Trust Series 1996-B Class A5
6.900%, 02/15/04 $ 2,000 $ 2,010
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $4,021) 3,973
-------
CASH EQUIVALENTS -- 2.2%
SEI Daily Income Trust Money
Market Portfolio 2,562 2,562
SEI Daily Income Trust Prime
Obligation Portfolio 43 43
-------
TOTAL CASH EQUIVALENTS
(Cost $2,605) 2,605
-------
TOTAL INVESTMENTS -- 98.4%
(Cost $119,238) 117,491
-------
OTHER ASSETS AND LIABILITIES, NET -- 1.6% 1,877
-------
NET ASSETS:
Portfolio Shares of Institutional Class (unlimited
authorization -- no par value) based on 11,475,084
outstanding shares of beneficial interest 121,508
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value) based on 162,169
outstanding shares of beneficial interest 1,686
Accumulated net realized loss on investments (2,079)
Net unrealized depreciation on investments (1,747)
--------
TOTAL NET ASSETS -- 100.0% $119,368
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.26
========
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE -- RETAIL CLASS A $10.29
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.29(DIVIDE)96.5%) $10.66
========
- --------------------------------------------------------------------------------
MTN -- MEDIUM TERM NOTE
YB -- YANKEE BOND
14
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
SHORT TERM BOND FUND
(GRAPHIC OMITTED)
A pie chart depicting the percentage of portfolio assets of the Achievement
Short Term Bond Fund.
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
CORPORATE BONDS -- 63.4%
American General Finance MTN
7.370%, 03/14/97 $1,000 $1,008
American General Finance
7.150%, 05/15/97 1,000 1,008
7.000%, 10/01/97 1,000 1,007
Associates of North America
6.250%, 03/15/99 1,000 991
Barnett Bank MTN
6.250%, 07/28/98 1,000 994
Bear Stearns MTN
7.740%, 02/06/97 1,000 1,009
Bell Atlantic Financial Note
6.625%, 11/30/97 2,000 2,008
Carolina Power & Light MTN
7.750%, 01/24/97 1,000 1,008
Chrysler Financial
8.060%, 01/27/97 1,000 1,010
7.380%, 03/17/97 1,000 1,009
CIT Group Holdings MTN
7.625%, 12/05/96 1,000 1,005
Comerica Bank
6.750%, 05/12/98 1,500 1,506
CSX Transport
5.740%, 03/15/99 1,000 976
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
Delmarva Power & Light
6.375%, 09/01/97 $1,000 $ 999
Ford Motor Credit
7.375%, 01/15/97 1,000 1,007
5.625%, 01/15/99 1,000 978
GE Credit
7.840%, 01/21/97 1,500 1,514
Household Bank FSB
6.250%, 04/01/99 1,000 988
Household Finance MTN
6.760%, 04/25/97 1,000 1,005
Houston Power & Light
7.625%, 03/01/97 1,000 1,008
IBM
6.375%, 11/01/97 2,000 2,003
Ingersoll Rand MTN
6.450%, 08/28/98 1,000 999
International Lease Finance
6.500%, 07/15/97 1,000 1,003
International Lease MTN
7.000%, 12/02/96 1,000 1,004
7.250%, 09/01/97 1,000 1,010
John Deere Capital
7.200%, 05/15/97 1,000 1,008
MBNA American Bank N.A
6.650%, 06/17/97 1,000 1,002
NationsBank
6.625%, 01/15/98 2,000 2,008
Old Kent Bank
7.100%, 03/07/97 1,000 1,006
Pacific Northwest Bell
7.500%, 12/01/96 1,000 1,004
PepsiCo
6.875%, 05/15/97 1,000 1,006
Philip Morris
8.750%, 12/01/96 1,000 1,008
Portland General Electric MTN
6.750%, 09/15/97 1,000 1,006
5.650%, 05/15/98 1,000 985
Society Bank (Cleveland)
7.125%, 04/15/97 1,000 1,005
Southern California Gas
5.250%, 03/01/98 1,000 981
Toyota Motor Credit
6.875%, 10/15/96 2,000 2,005
US Bancorp MTN
7.380%, 03/03/97 1,000 1,008
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
15
<PAGE>
JULY 31, 1996 (UNAUDITED)
Statement of Net Assets
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
CORPORATE BONDS -- (CONTINUED)
Waste Management
6.375%, 07/01/97 $ 1,000 $ 1,002
WMX Technologies
7.125%, 03/22/97 2,000 2,013
-------
TOTAL CORPORATE BONDS
(Cost $46,180) 46,104
-------
U.S. TREASURY OBLIGATIONS -- 31.9%
U.S. Treasury Notes
7.500%, 12/31/96 2,000 2,016
7.500%, 01/31/97 2,000 2,018
6.875%, 02/28/97 3,000 3,020
6.875%, 03/31/97 3,000 3,022
6.500%, 08/15/97 2,000 2,011
6.000%, 11/30/97 2,000 1,999
7.250%, 02/15/98 2,000 2,032
7.125%, 10/15/98 2,000 2,036
6.375%, 01/15/99 3,000 3,005
6.750%, 05/31/99 2,000 2,019
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $23,279) 23,178
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 1.4%
Federal Home Loan Bank
6.710%, 04/21/97 1,000 1,006
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,000) 1,006
-------
CASH EQUIVALENTS -- 2.1%
SEI Daily Income Trust Money
Market Portfolio 1,523 1,523
SEI Daily Income Trust Prime
Obligation Portfolio 11 11
-------
TOTAL CASH EQUIVALENTS
(Cost $1,534) 1,534
-------
- -------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.8%
(Cost $71,993) $ 71,822
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.2% 883
--------
NET ASSETS:
Portfolio Shares of Institutional Class (unlimited
authorization -- no par value) based on 7,182,560
outstanding shares of beneficial interest 74,171
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value) based on 75,068
outstanding shares of beneficial interest 752
Accumulated net realized loss on investments (2,047)
Net unrealized depreciation on investments (171)
--------
TOTAL NET ASSETS -- 100.0% $ 72,705
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.02
========
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE -- RETAIL CLASS A $10.01
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.01(DIVIDE)98.5%) $10.16
========
- --------------------------------------------------------------------------------
MTN -- MEDIUM TERM NOTE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
SHORT TERM MUNICIPAL BOND FUND
(GRAPHIC OMITTED)
A pie chart depicting the percentage of portfolio assets of the Achievement
Short Term Municipal Bond Fund.
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.4%
ARIZONA -- 3.8%
Arizona State, Transportation Board
RB AMBAC
5.000%, 07/01/99 $1,000 $1,015
------
ARKANSAS -- 1.9%
Hot Springs, Civic Center Project
RB FSA
4.100%, 12/01/99 500 496
------
COLORADO -- 1.9%
Gunnison Watershed, GO MBIA
5.000%, 12/01/99 500 508
------
CONNECTICUT -- 3.8%
Connecticut State, Special Tax
Assessment RB AMBAC
4.250%, 05/15/98 1,000 1,000
------
DELAWARE -- 3.9%
Delaware State, Public
Improvement GO
5.600%, 03/01/98 1,000 1,024
------
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
FLORIDA -- 3.8%
Jacksonville, Electric Authority RB
5.000%, 10/01/98 $1,000 $1,016
------
HAWAII -- 3.7%
Honolulu, City & County GO MBIA
4.250%, 11/01/99 1,000 993
------
IDAHO -- 1.9%
City of Boise, RB
4.500%, 02/01/00 500 501
------
ILLINOIS -- 3.9%
Glenview, Miscellaneous Improvements,
Callable 09/01/98 @ 100 GO
5.500%, 12/01/98 1,000 1,025
------
INDIANA -- 4.0%
Indianapolis, Telecommunications
Improvements RB
6.400%, 02/01/99 1,000 1,051
------
KENTUCKY -- 3.7%
Kentucky State Property &
Buildings, Refunding RB
4.100%, 09/01/98 1,000 994
------
MINNESOTA -- 3.8%
Saint Paul, Capital Improvements,
Series B GO
4.750%, 03/01/99 1,000 1,009
------
NEBRASKA -- 3.8%
Douglass County, School District
#017, GO
4.300%, 09/15/98 1,000 1,003
------
NEVADA -- 1.9%
Washoe County, Airport Authority
RB MBIA
5.150%, 07/01/99 500 506
------
OHIO -- 7.6%
Cincinnati, Water Utility
Improvements GO
5.150%, 12/01/98 1,000 1,023
Ohio State, Building Authority RB
4.100%, 04/01/99 1,000 989
------
2,012
------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
(CONTINUED)
17
<PAGE>
JULY 31, 1996 (UNAUDITED)
Statement of Net Assets
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
OKLAHOMA -- 3.8%
Grand River, Grand River Dam
Authority RB
5.000%, 06/01/99 $1,000 $1,013
------
OREGON -- 5.7%
Jackson County, Oregon School
District #549C GO
4.500%, 06/01/99 1,000 1,005
Portland, Oregon Community
College GO
4.500%, 01/15/99 500 500
------
1,505
------
TENNESSEE -- 3.8%
Chattanooga, Public Improvements GO
4.900%, 02/01/99 1,000 1,010
------
TEXAS -- 5.8%
Fort Worth, Refunding GO
4.900%, 03/01/99 1,000 1,011
North East Independent School
District, GO
7.000%, 02/01/00 500 539
------
1,550
------
VIRGINIA -- 5.7%
Portsmouth, Refunding GO
5.500%, 11/01/98 500 514
Richmond, GO STAID
4.700%, 01/15/00 1,000 1,003
------
1,517
------
WASHINGTON -- 7.7%
Tacoma, Washington GO
5.300%, 07/01/99 1,000 1,023
Thurston County GO FGIC
5.250%, 12/01/98 1,000 1,019
------
2,042
------
WISCONSIN -- 7.7%
Milwaukee, Sewer District,
Series A, GO
6.500%, 10/01/98 1,000 1,045
Wisconsin State, Refunding GO
4.400%, 05/01/98 1,000 1,004
------
2,049
------
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
WYOMING -- 3.8%
Platte County, Polution Control RB
4.000%, 01/01/98 $ 1,000 $ 995
-------
TOTAL MUNICIPAL BONDS
(Cost $25,681) 25,834
-------
CASH EQUIVALENT -- 2.1%
SEI Institutional Tax Free Portfolio 550 550
-------
TOTAL CASH EQUIVALENT
(Cost $550) 550
-------
TOTAL INVESTMENTS -- 99.5%
(Cost $26,231) 26,384
-------
OTHER ASSETS AND LIABILITIES, NET-- 0.5% 132
-------
NET ASSETS:
Portfolio Shares of Institutional Class A (unlimited
authorization -- no par value) based on 2,602,569
outstanding shares of beneficial interest 26,001
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value) based on 21,554
outstanding shares of beneficial interest 219
Undistributed net investment income 7
Accumulated net realized gain on investments 136
Net unrealized appreciation on investments 153
-------
TOTAL NET ASSETS -- 100.0% $26,516
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.11
=======
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE -- RETAIL CLASS A $10.13
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.13(DIVIDE)98.5%) $10.28
=======
- --------------------------------------------------------------------------------
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC -- FEDERAL GUARANTY INSURANCE CORPORATION
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
RB -- REVENUE BOND
STAID -- STATE AID WITHHOLDING
18
<PAGE>
IDAHO MUNICIPAL BOND FUND
(GRAPHIC OMITTED)
A pie chart depicting the percentage of portfolio assets of the Achievement
Idaho Municipal Bond Fund.
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.0%
IDAHO -- 96.3%
Ada & Canyon Counties, Joint School
District #2, Meridian, GO
5.500%, 07/30/14 $500 $488
5.625%, 07/30/16 500 496
Ada County, GO
4.750%, 02/01/99 200 204
American Falls, Reservoir Refunding,
Series A, RB
7.250%, 05/01/04 150 165
Bannock & Caribou Counties, Joint
School District #21, Marsh VY, GO
5.250%, 09/01/00 100 103
5.250%, 09/01/01 105 109
5.300%, 09/01/04 100 103
Bannock County, GO
5.000%, 09/01/99 200 205
5.100%, 09/01/01 200 204
Bingham County, School District #055,
Blackfoot, GO MBIA
5.650%, 08/01/15 350 352
Blaine County, GO CGIC
4.400%, 08/01/07 150 142
Boise City, Independent School
District #1, GO AMBAC
5.400%, 07/30/14 500 491
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
Boise City, RB Callable 02/01/01 @100
5.100%, 02/01/11 $500 $478
Boise State, Student Union & Housing
Systems, RB MBIA
5.000%, 04/01/00 100 102
4.500%, 04/01/03 100 102
4.750%, 04/01/05 200 198
Boise, Independent School District, GO
6.000%, 07/30/01 500 530
5.375%, 07/30/10 250 247
5.500%, 07/30/16 250 246
Boise-Kuna, Lucky Peak Hydroelectric
Project, RB
6.375%, 07/01/02 200 222
Bonneville & Bingham Counties,
School District #93, Refunding
Series A, GO FGIC
5.750%, 07/30/07 500 535
5.500%, 07/30/10 400 414
Bonneville County, School District #91,
Idaho Falls, GO
5.200%, 08/01/05 500 508
5.450%, 08/01/08 200 203
5.500%, 08/01/09 300 296
Canyon County, School District #131,
Nampa, GO MBIA
5.500%, 07/30/11 500 501
5.500%, 07/30/12 500 499
Canyon County, School District
#132, GO
4.000%, 07/30/01 100 98
4.100%, 07/30/02 100 97
4.200%, 07/30/03 130 126
5.400%, 07/30/12 200 199
5.450%, 07/30/15 900 882
Canyon County, School District
#134, Middleton, GO FGIC
4.500%, 07/31/11 500 459
Canyon County, School District
#139, GO
5.900%, 08/01/00 400 422
5.200%, 08/01/11 320 307
5.200%, 08/01/12 110 107
5.000%, 08/01/13 425 403
Caribou & Bonneville Counties,
School District #150, GO
5.500%, 09/01/06 395 407
City of Sun Valley, Series 1995, GO
5.050%, 08/01/08 195 194
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
19
<PAGE>
JULY 31, 1996 (UNAUDITED)
Statement of Net Assets
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
IDAHO (CONTINUED)
Elmore County, School District #193,
Mountain Home, GO AMBAC
5.000%, 07/31/10 $400 $381
4.500%, 07/31/12 500 449
Fremont & Madison Counties, School
District #215, St. Anthony, GO CGIC
5.600%, 08/01/14 125 127
5.600%, 08/01/15 765 768
Gem & Boise Counties, Joint School
District #221, Emmit, GO AMBAC
4.700%, 08/01/01 505 511
Gooding & Lincoln Counties, Joint
School District #231, GO CGIC
6.300%, 02/01/15 535 577
Gooding County, School District #232,
Wendell, GO AMBAC
5.000%, 08/01/11 100 97
Idaho Falls, Refunding Electric, Zero
Coupon Bond, GO FGIC
0.000%, 04/01/07 500 288
0.000%, 04/01/11 500 225
0.000%, 04/01/12 500 212
0.000%, 04/01/13 500 199
0.000%, 04/01/14 180 68
Idaho Health Facility Authority,
St. Alphonsus Regional Medical
Center, RB
6.100%, 12/01/07 100 105
Idaho State Building Authority,
Refunding, Series C, RB MBIA
5.600%, 09/01/05 100 105
Idaho State Building Authority,
Series D, RB
5.800%, 09/01/05 100 106
Idaho State Building Authority,
Series E, RB
5.200%, 09/01/99 200 206
5.250%, 09/01/00 100 104
Idaho State Health Facility Authority,
St Josephs Regional Medical
Center, RB MBIA
5.000%, 07/01/07 500 500
Idaho State Health Facility Authority,
Magic Valley Regional Medical
Center, RB AMBAC
5.000%, 12/01/02 500 512
5.200%, 12/01/04 500 516
Idaho State Tax Anticipation Notes
4.500%, 06/30/97 500 502
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
Idaho State University, Student
Facility Fee, RB
5.000%, 04/01/99 $115 $117
4.750%, 04/01/02 130 131
4.900%, 04/01/03 140 142
Jefferson & Madison Counties, School
District #251, Rigby, GO MBIA
5.600%, 07/30/00 300 314
Jefferson County, School District #253,
GO MBIA
5.500%, 08/01/15 240 237
Jerome County, School District #262,
GO AMBAC
8.000%, 08/01/00 100 113
5.000%, 08/01/01 195 200
5.150%, 08/01/04 200 204
Ketchum, Sewer Revenue, RB MBIA
5.400%, 07/01/98 200 205
Kootenai County, Consolidated Free
Library District, GO CGIC
5.000%, 08/01/06 160 163
Kootenai County, School District
#272, GO
4.700%, 08/01/06 400 389
Latah & Clearwater Counties, School
District #286, GO AMBAC
5.200%, 02/01/04 100 103
5.500%, 02/01/07 200 207
5.600%, 02/01/08 200 207
Madison County, GO CGIC
5.400%, 08/01/15 420 413
Madison County, School District
#321, Rexburg, GO AMBAC
5.300%, 02/01/03 200 207
Mccall, Water Revenue Bonds Parity
Lien FSA
5.750%, 03/01/07 215 223
Meridian, Idaho GO FSA
5.000%, 08/01/15 290 272
Minidoka & Jerome Counties, School
District #331, GO MBIA
5.000%, 02/01/01 175 179
Oneida County, School District
#351, GO MBIA
5.000%, 07/31/15 375 351
Owyhee & Elmore Counties, School
District #365, Grand View,
GO AMBAC
5.250%, 08/01/99 100 103
Payette & Washington Counties, Joint
School District #371, GO AMBAC
4.900%, 10/01/03 500 508
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
Payette County, School District #372,
GO ASSETG
6.750%, 07/31/09 $100 $ 109
Post Falls, Sewer Revenue, RB AMBAC
4.900%, 08/01/05 200 200
Southern Idaho Regional Solid Waste
Project, COP CLDF
4.100%, 11/01/98 200 200
Southern Idaho Regional Solid Waste
Project, COP
5.450%, 11/01/13 500 491
Teton County, School District #401,
GO FSA
5.500%, 08/01/10 400 405
Twin Falls & Cassia County, Joint
School District #418, GO MBIA
5.450%, 08/01/15 145 145
Twin Falls County, Class A, School
District #413, GO AMBAC
5.250%, 07/30/09 200 200
5.250%, 07/30/13 400 391
5.250%, 07/30/14 420 406
Twin Falls County, School District
#415, GO ASSETG
5.500%, 08/01/15 195 194
Twin Falls County, Solid Waste
Disposal Project, GO
4.500%, 09/01/98 400 405
4.400%, 09/01/00 305 305
4.400%, 09/01/02 100 99
University of Idaho, Refunding &
Improvements Facility Fee, RB
5.100%, 04/01/07 200 200
University of Idaho, Refunding Student
Building Fee, RB
5.350%, 04/01/10 250 253
University of Idaho, Series B, RB
5.650%, 07/01/99 100 104
5.800%, 07/01/00 100 105
5.900%, 07/01/01 200 212
Washington County, School District
#431, GO AMBAC
8.000%, 08/01/99 210 233
5.000%, 08/01/02 100 92
5.300%, 08/01/04 200 207
5.400%, 08/01/05 100 104
5.500%, 08/01/06 200 209
-------
28,659
-------
PUERTO RICO -- 0.7%
University of Puerto Rico, Zero
Coupon Bond, RB MBIA
0.000%, 06/01/11 530 233
-------
- --------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $28,577) $28,892
-------
CASH EQUIVALENTS -- 5.3%
SEI Tax Free Portfolio 92 92
SEI Institutional Tax Free Portfolio 1,489 1,489
-------
TOTAL CASH EQUIVALENTS
(Cost $1,581) 1,581
-------
TOTAL INVESTMENTS -- 102.3%
(Cost $30,158) 30,473
-------
OTHER ASSETS AND LIABILITIES, NET -- (2.3%) (698)
-------
NET ASSETS:
Portfolio Shares of Institutional Class (unlimited
authorization -- no par value) based on 2,622,246
outstanding shares of beneficial interest 26,803
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value) based on 237,538
outstanding shares of beneficial interest 2,497
Accumulated net realized gain on investments 160
Net unrealized appreciation on investments 315
-------
TOTAL NET ASSETS -- 100.0% $29,775
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.41
=======
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE -- RETAIL CLASS A $10.44
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.44(DIVIDE)96%) $10.88
=======
- --------------------------------------------------------------------------------
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
ASSETG -- ASSET GUARANTY
CGIC -- CAPITAL GUARANTEE INSURANCE CORPORATION
CLDF -- CREDIT LECALE DE FRANCE
COP -- CERTIFICATE OF PARTICIPATION
FGIC -- FEDERAL GUARANTY INSURANCE CORPORATION
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
<PAGE>
[This Page Intentionally Left Blank]
22
<PAGE>
FOR THE SIX MONTH PERIOD ENDED JULY 31, 1996 THE ACHIEVEMENT FUNDS TRUST
Statements of Operations (000)
(UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
SHORT
SHORT TERM IDAHO
INTERMEDIATE TERM MUNICIPAL MUNICIPAL
EQUITY BALANCED TERM BOND BOND BOND BOND
FUND FUND FUND FUND FUND FUND
====== ======== ============ ======= ========= ==========
<S> <C> <C> <C> <C> <C> <C>
INCOME:
Dividend Income $ 1,172 $ 667 $ -- $ -- $ -- $ --
Interest Income 221 2,199 3,968 2,505 681 721
-------- -------- -------- -------- -------- --------
Total Income 1,393 2,866 3,968 2,505 681 721
-------- -------- -------- -------- -------- --------
EXPENSES:
Administrative Fees 159 147 117 74 50 50
Waiver of Administrative Fees -- -- -- -- (20) (22)
Investment Advisory Fees 587 546 351 222 91 84
Waiver of Investment
Advisory Fees (167) (155) (136) (81) (59) (55)
Custodian/Transfer Agent Fees 34 34 25 20 20 20
Professional Fees 21 18 17 8 4 3
Pricing Fees 2 2 2 1 1 1
Registration & Filing Fees 32 26 32 11 17 14
Printing Fees 19 15 13 7 3 3
Trustee Fees 3 3 3 2 1 1
Distribution Fees (1) 3 3 1 -- -- 3
Amortization of Deferred
Organizational Costs 24 27 16 13 7 6
Miscellaneous Fees 2 2 1 1 -- 3
-------- -------- -------- -------- -------- --------
Total Expenses 719 668 442 278 115 111
-------- -------- -------- -------- -------- --------
Net Investment Income 674 2,198 3,526 2,227 566 610
-------- -------- -------- -------- -------- --------
Net Realized Gain (Loss) on
Investments 9,513 5,200 (470) (12) 42 57
Net Unrealized Depreciation
of Investments (16,362) (11,586) (5,475) (1,200) (433) (1,087)
-------- -------- -------- -------- -------- --------
Net Realized and Unrealized
Loss on Investments (6,849) (6,386) (5,945) (1,212) (391) (1,030)
-------- -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets
Resulting from Operations $ (6,175) $ (4,188) $ (2,419) $ 1,015 $ 175 $ (420)
======== ======== ======== ======== ======== ========
<FN>
(1) ALL DISTRIBUTION FEES ARE INCURRED IN RETAIL CLASS A.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
Statements of Changes in Net Assets (000)
FOR THE SIX MONTH PERIOD ENDED JULY 31, 1996 (UNAUDITED) AND YEAR YEAR ENDED
JANUARY 31, 1996.
- --------------------------------------------------------------------------------
THE ACHIEVEMENT FUNDS TRUST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY BALANCED INTERMEDIATE
FUND FUND TERM BOND FUND
======================== ======================== ========================
2/1/96 2/1/95 2/1/96 2/1/95 2/1/96 2/1/95
TO TO TO TO TO TO
7/31/96 1/31/96 7/31/96 1/31/96 7/31/96 1/31/96
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 674 $ 1,768 $ 2,198 $ 4,565 $ 3,526 $ 5,327
Net Realized Gain (Loss) on Investments 9,513 10,078 5,200 6,570 (470) (1,369)
Net Change in Unrealized
Appreciation (Depreciation) of
Investments (16,362) 22,581 (11,586) 17,088 (5,475) 5,933
-------- -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets
Resulting From Operations (6,175) 34,427 (4,188) 28,223 (2,419) 9,891
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (751) (1,771) (2,208) (4,562) (3,495) (5,232)
Retail Class A (10) (8) (30) (17) (32) (28)
Capital Gains:
Institutional Class -- (7,843) -- (5,076) -- --
Retail Class A -- (77) -- (51) -- --
-------- -------- -------- -------- -------- --------
Total Distributions (761) (9,699) (2,238) (9,706) (3,527) (5,260)
-------- -------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 15,648 49,800 8,830 19,813 17,287 61,480
Proceeds from Shares Issued in Lieu
of Cash Distributions 189 2,384 2,194 9,629 772 1,297
Cost of Shares Redeemed (10,065) (22,918) (9,711) (13,447) (9,763) (17,709)
-------- -------- -------- -------- -------- --------
Total Institutional Class Transactions 5,772 29,266 1,313 15,995 8,296 45,068
-------- -------- -------- -------- -------- --------
Retail Class A:
Proceeds from Shares Issued 2,048 1,692 1,216 1,612 956 959
Proceeds from Shares Issued in Lieu
of Cash Distributions 10 85 29 66 27 27
Cost of Shares Redeemed (233) (97) (143) (65) (235) (48)
-------- -------- -------- -------- -------- --------
Total Retail Class A Transactions 1,825 1,680 1,102 1,613 748 938
-------- -------- -------- -------- -------- --------
Net Increase (Decrease) in Net
Assets from Capital Share Transactions 7,597 30,946 2,415 17,608 9,044 46,006
-------- -------- -------- -------- -------- --------
Total Increase (Decrease) in Net Assets 661 55,674 (4,011) 36,125 3,098 50,637
NET ASSETS:
Beginning of Period 152,726 97,052 149,021 112,896 116,270 65,633
-------- -------- -------- -------- -------- --------
End of Period $153,387 $152,726 $145,010 $149,021 $119,368 $116,270
======== ======== ======== ======== ======== ========
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 1,217 4,165 766 1,766 1,664 5,735
Shares Issued in Lieu of Cash
Distributions 15 196 187 852 74 123
Shares Redeemed (787) (1,900) (829) (1,186) (948) (1,680)
-------- -------- -------- -------- -------- --------
Total Institutional Class Share Transactions 445 2,461 124 1,432 790 4,178
-------- -------- -------- -------- -------- --------
Retail Class A
Shares Issued 160 141 104 141 93 91
Shares Issued in Lieu of Cash
Distributions 1 7 2 6 3 3
Shares Redeemed (18) (8) (12) (6) (23) (5)
-------- -------- -------- -------- -------- --------
Total Retail Class A Share Transactions 143 140 94 141 73 89
-------- -------- -------- -------- -------- --------
Net Increase (Decrease) in Share Transactions 588 2,601 218 1,573 863 4,267
======== ======== ======== ======== ======== ========
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM SHORT TERM IDAHO
BOND FUND MUNICIPAL BOND FUND MUNICIPAL BOND FUND
======================== ======================== ==========================
2/1/96 2/1/95 2/1/96 2/1/95 2/1/96 2/1/95
TO TO TO TO TO TO
7/31/96 1/31/96 7/31/96 1/31/96 7/31/96 1/31/96
-------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 2,227 $ 4,683 $ 566 $ 1,220 $ 610 $ 1,230
Net Realized Gain (Loss) on Investments (12) (2,035) 42 242 57 401
Net Change in Unrealized
Appreciation (Depreciation) of
Investments (1,200) 1,287 (433) 610 (1,087) 1,616
------- ------- ------- ------- ------- -------
Increase (Decrease) in Net Assets
Resulting From Operations 1,015 3,935 175 2,072 (420) 3,247
------- ------- ------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (2,220) (4,552) (577) (1,204) (566) (1,149)
Retail Class A (7) (2) (4) (1) (50) (68)
Capital Gains:
Institutional Class -- -- -- (147) -- (272)
Retail Class A -- -- -- (1) -- (32)
------- ------- ------- ------- ------- -------
Total Distributions (2,227) (4,554) (581) (1,353) (616) (1,521)
------- ------- ------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 9,150 45,648 1,357 9,734 3,957 5,838
Proceeds from Shares Issued in Lieu
of Cash Distributions 662 1,376 -- -- 4 3
Cost of Shares Redeemed (12,279) (41,153) (5,958) (12,831) (1,602) (7,506)
------- ------- ------- ------- ------- -------
Total Institutional Class Transactions (2,467) 5,871 (4,601) (3,097) 2,359 (1,665)
------- ------- ------- ------- ------- -------
Retail Class A:
Proceeds from Shares Issued 779 58 6 220 744 3,044
Proceeds from Shares Issued in Lieu
of Cash Distributions 1 2 4 2 48 94
Cost of Shares Redeemed (67) (21) (3) (10) (1,322) (111)
------- ------- ------- ------- ------- -------
Total Retail Class A Transactions 713 39 7 212 (530) 3,027
------- ------- ------- ------- ------- -------
Net Increase (Decrease) in Net
Assets from Capital Share Transactions (1,754) 5,910 (4,594) (2,885) 1,829 1,362
------- ------- ------- ------- ------- -------
Total Increase (Decrease) in Net Assets (2,966) 5,291 (5,000) (2,166) 793 3,088
NET ASSETS:
Beginning of Period 75,671 70,380 31,516 33,682 28,982 25,894
------- ------- ------- ------- ------- -------
End of Period $72,705 $75,671 $26,516 $31,516 $29,775 $28,982
======= ======= ======= ======= ======= =======
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 909 4,338 134 956 378 555
Shares Issued in Lieu of Cash
Distributions 66 136 -- -- -- --
Shares Redeemed (1,220) (4,067) (590) (1,262) (152) (714)
------- ------- ------- ------- ------- -------
Total Institutional Class Share Transactions (245) 407 (456) (306) 226 (159)
------- ------- ------- ------- ------- -------
Retail Class A
Shares Issued 78 6 1 22 71 289
Shares Issued in Lieu of Cash
Distributions -- -- -- -- 5 8
Shares Redeemed (7) (2) -- (1) (125) (10)
------- ------- ------- ------- ------- -------
Total Retail Class A Share Transactions 71 4 1 21 (49) 287
------- ------- ------- ------- ------- -------
Net Increase (Decrease) in Share Transactions (174) 411 (455) (285) 177 128
======= ======= ======= ======= ======= =======
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
25
<PAGE>
Financial Highlights
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Period or Year
NET
ASSET DIVIDENDS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS, END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END TOTAL OF PERIOD
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN(DAGGER) (000)
--------- ---------- ---------- ------------- -------------- ------------ -------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EQUITY FUND
===========
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** $12.64 0.05 (0.06) -- (0.52) $12.11 (3.74)%* $149,970
For the year ended
January 31, 1996 $10.24 0.17 (0.17) (0.72) 3.12 $12.64 32.55% $150,957
For the period ended
January 31, 1995(1)** $10.00 0.01 -- -- 0.23 $10.24 2.40%* $ 97,052
RETAIL CLASS A--
For the six months ended
July 31, 1996** $12.65 0.04 (0.05) -- (0.53) $12.11 (3.92)%* $ 3,417
For the period ended
January 31, 1996(2)** $10.52 0.14 (0.15) (0.72) 2.86 $12.65 32.34% $ 1,769
BALANCED FUND
=============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** $11.79 0.17 (0.18) -- (0.50) $11.28 (2.87)%* $142,362
For the year ended
January 31, 1996 $10.20 0.39 (0.39) (0.42) 2.01 $11.79 24.15% $147,357
For the period ended
January 31, 1995(1)** $10.00 0.04 -- -- 0.16 $10.20 2.00%* $112,896
RETAIL CLASS A--
For the six months ended
July 31, 1996** $11.78 0.16 (0.17) -- (0.51) $11.26 (3.04)%* $ 2,648
For the period ended
January 31, 1996(2)** $10.34 0.32 (0.31) (0.42) 1.85 $11.78 23.88% $ 1,664
INTERMEDIATE TERM
BOND FUND
=================
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** $10.79 0.31 (0.31) -- (0.53) $10.26 (2.02)%* $117,700
For the year ended
January 31, 1996 $10.09 0.71 (0.70) -- 0.69 $10.79 13.62% $115,307
For the period ended
January 31, 1995(1)** $10.00 0.05 (0.06) -- 0.10 $10.09 1.54%* $ 65,633
RETAIL CLASS A--
For the six months ended
July 31, 1996** $10.82 0.29 (0.30) -- (0.52) $10.29 (2.13)%* $ 1,668
For the period ended
January 31, 1996(2)** $10.16 0.56 (0.55) -- 0.65 $10.82 13.49% $ 963
</TABLE>
<TABLE>
<CAPTION>
RATIO RATIO OF
OF EXPENSES NET INCOME
RATIO TO AVERAGE RATIO OF TO AVERAGE
OF EXPENSES NET ASSETS NET INCOME NET ASSETS PORTFOLIO AVERAGE
TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER COMMISSION
NET ASSETS (WAIVERS) NET ASSETS (WAIVERS) RATE RATE(3)
----------- ----------- ---------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
EQUITY FUND
===========
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** 0.90% 1.11% 0.85% 0.64% 40.65% $0.0577
For the year ended
January 31, 1996 0.90% 1.14% 1.43% 1.19% 103.85% n/a
For the period ended
January 31, 1995(1)** 0.90% 1.26% 1.22% 0.86% 6.03% n/a
RETAIL CLASS A--
For the six months ended
July 31, 1996** 1.15% 1.35% 0.54% 0.34% 40.65% $0.0577
For the period ended
January 31, 1996(2)** 1.15% 1.37% 0.99% 0.77% 103.85% n/a
BALANCED FUND
=============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** 0.90% 1.11% 2.98% 2.77% 30.23% $0.0571
For the year ended
January 31, 1996 0.90% 1.14% 3.48% 3.24% 59.74% n/a
For the period ended
January 31, 1995(1)** 0.90% 1.26% 3.61% 3.25% 1.70% n/a
RETAIL CLASS A--
For the six months ended
July 31, 1996** 1.15% 1.35% 2.70% 2.50% 30.23% $0.0571
For the period ended
January 31, 1996(2)** 1.15% 1.38% 3.06% 2.83% 59.74% n/a
INTERMEDIATE TERM
BOND FUND
=================
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** 0.75% 0.98% 6.01% 5.78% 14.72% n/a
For the year ended
January 31, 1996 0.75% 1.02% 6.14% 5.87% 85.16% n/a
For the period ended
January 31, 1995(1)** 0.75% 1.13% 5.60% 5.22% 10.57% n/a
RETAIL CLASS A--
For the six months ended
July 31, 1996** 1.00% 1.22% 5.77% 5.55% 14.72% n/a
For the period ended
January 31, 1996(2)** 1.00% 1.26% 5.74% 5.48% 85.16% n/a
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
<TABLE>
<CAPTION>
NET
ASSET DIVIDENDS DISTRIBUTIONS REALIZED AND NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE,
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END TOTAL
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN(DAGGER)
--------- ---------- ---------- ------------- -------------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
SHORT TERM
BOND FUND
==========
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** $10.18 0.30 (0.30) -- (0.16) $10.02 1.42%*
For the year ended
January 31, 1996 $10.02 0.67 (0.65) -- 0.14 $10.18 7.80%
For the period ended
January 31, 1995(1)** $10.00 0.04 (0.06) -- 0.04 $10.02 0.79%*
RETAIL CLASS A--
For the six months ended
July 31, 1996** $10.18 0.28 (0.29) -- (0.16) $10.01 1.20%*
For the period ended
January 31, 1996(2)** $10.03 0.53 (0.52) -- 0.14 $10.18 7.55%
SHORT TERM
MUNICIPAL
BOND FUND
==========
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** $10.23 0.19 (0.19) -- (0.12) $10.11 0.72%*
For the year ended
January 31, 1996 $10.01 0.43 (0.42) (0.05) 0.26 $10.23 6.71%
For the period ended
January 31, 1995(1)** $10.00 0.03 (0.03) -- 0.01 $10.01 0.43%*
RETAIL CLASS A--
For the six months ended
July 31, 1996** $10.25 0.18 (0.18) -- (0.12) $10.13 0.59%*
For the period ended
January 31, 1996(2)** $10.01 0.33 (0.33) (0.05) 0.29 $10.25 6.99%
IDAHO MUNICIPAL
BOND FUND
===============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** $10.80 0.23 (0.23) -- (0.39) $10.41 (1.48)%*
For the period ended
January 31, 1996 $10.13 0.52 (0.51) (0.12) 0.78 $10.80 12.68%
For the period ended
January 31, 1995(1)** $10.00 0.04 (0.04) -- 0.13 $10.13 1.74%*
RETAIL CLASS A--
For the six months ended
July 31, 1996** $10.83 0.22 (0.22) -- (0.39) $10.44 (1.60)%*
For the period ended
January 31, 1996(2)** $10.21 0.41 (0.40) (0.12) 0.73 $10.83 12.60%
</TABLE>
<TABLE>
<CAPTION>
RATIO RATIO OF
OF EXPENSES NET INCOME
NET RATIO TO AVERAGE RATIO OF TO AVERAGE
ASSETS, END OF EXPENSES NET ASSETS NET INCOME NET ASSETS PORTFOLIO
OF PERIOD TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
(000) NET ASSETS (WAIVERS) NET ASSETS (WAIVERS) RATE
----------- ----------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
SHORT TERM
BOND FUND
==========
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** $71,953 0.75% 0.97% 6.01% 5.79% 8.59%
For the year ended
January 31, 1996 $75,632 0.75% 0.99% 6.11% 5.87% 83.64%
For the period ended
January 31, 1995(1)** $70,380 0.75% 1.13% 4.21% 3.83% 11.95%
RETAIL CLASS A--
For the six months ended
July 31, 1996** $ 752 1.00% 1.19% 5.76% 5.57% 8.59%
For the period ended
January 31, 1996(2)** $ 39 1.00% 1.23% 5.75% 5.52% 83.64%
SHORT TERM
MUNICIPAL
BOND FUND
==========
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** $26,300 0.75% 1.26% 3.70% 3.19% 8.82%
For the year ended
January 31, 1996 $31,304 0.75% 1.30% 3.88% 3.33% 114.09%
For the period ended
January 31, 1995(1)** $33,682 0.75% 1.26% 3.67% 3.16% 11.80%
RETAIL CLASS A--
For the six months ended
July 31, 1996** $ 216 1.00% 1.51% 3.46% 2.95% 8.82%
For the period ended
January 31, 1996(2)** $ 212 1.00% 1.54% 3.49% 2.95% 114.09%
IDAHO MUNICIPAL
BOND FUND
===============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1996** $27,299 0.75% 1.31% 4.35% 3.79% 6.21%
For the period ended
January 31, 1996 $25,873 0.75% 1.35% 4.52% 3.92% 58.94%
For the period ended
January 31, 1995(1)** $25,894 0.75% 1.38% 4.21% 3.58% 5.66%
RETAIL CLASS A--
For the six months ended
July 31, 1996** $ 2,476 1.00% 1.55% 4.09% 3.54% 6.21%
For the period ended
January 31, 1996(2)** $ 3,109 1.00% 1.58% 4.18% 3.60% 58.94%
<FN>
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
** RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(DAGGER) RETURNS DO NOT REFLECT ANY SALES LOAD THAT MAY BE APPLICABLE.
(1) COMMENCED OPERATIONS ON DECEMBER 28, 1994.
(2) COMMENCED OPERATIONS ON MARCH 6, 1995.
(3) AVERAGE COMMISION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES
DURING THE PERIOD. PRESENTATION OF THE RATE IS ONLY REQUIRED FOR FISCAL
YEARS BEGINNING AFTER SEPTEMBER 1, 1995.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
27
<PAGE>
JULY 31, 1996
Notes to Financial Statements
(UNAUDITED)
1. ORGANIZATION
================================================================================
The Achievement Funds Trust (the "Trust"), formerly the FSB Funds, was
organized as an unincorporated business trust under the laws of the Commonwealth
of Massachusetts pursuant to a Master Trust Agreement dated December 16, 1988,
which agreement was amended and restated on October 7, 1994 and further amended
on December 1, 1994.
The Trust is registered under the Investment Company Act of 1940, as
amended, as an open-end, management investment company. The Trust presently
consists of a series of seven funds (the "Funds") which includes the Equity Fund
and the Balanced Fund (the "Stock Funds") and the Intermediate Term Bond Fund,
the Short Term Bond Fund, the Short Term Municipal Bond Fund, the Idaho
Municipal Bond Fund and the Municipal Bond Fund (the "Bond Funds"). The
Municipal Bond Fund had not commenced operations as of July 31, 1996. The Funds'
prospectus provides a description of each Funds investment objectives, policies
and strategies. The Trust is registered to offer two classes of shares,
Institutional and Retail Class A. The Trust's declaration of trust permits the
Board of Trustees to create additional funds in the future. The assets of each
Fund are segregated, and a shareholder's interest is limited to the Fund in
which shares are held.
2. SIGNIFICANT ACCOUNTING POLICIES
================================================================================
The following is a summary of significant accounting policies followed by
the Funds.
SECURITY VALUATION -- Investments in equity securities that are traded on a
national securities exchange (or reported on the NASDAQ national market system)
are stated at the last quoted sales price, if readily available for such equity
securities on each business day; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Option contracts
are valued at the last quoted bid price as quoted on the primary exchange or
board of trade which such option contracts are stated. Debt obligations
exceeding sixty days to maturity for which market quotations are readily
available are valued at the most recently quoted bid price. Debt obligations
with sixty days or less remaining until maturity may be valued at their
amortized cost. Restricted securities for which quotations are not readily
available are valued at fair value using methods as approved by the Board of
Trustees.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date of the security purchase or sale. For the Equity
Fund, the Balanced Fund, the Intermediate Term Bond Fund and the Short Term Bond
Fund, costs used in determining net realized capital gains and losses on the
sale of securities are those of the specific securities sold, adjusted for the
accretion of the purchase discounts during the respective holding period, which
is calculated using the effective interest method. For the Short Term Municipal
bond Fund and the Idaho Municipal Bond Fund, costs used in determining net
realized capital gains and losses on the sale of securities are those of the
specific securities sold, adjusted for the accretion and amortization of the
purchase discounts and premiums during the respective holding period, which is
calculated using the effective interest method. Interest income is recorded on
the accrual basis. Dividend income is recorded on ex-date.
28
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
OPTIONS TRANSACTIONS -- In order to produce incremental earnings, protect gains,
and facilitate buying and selling of securities for investment purposes, the
Equity Fund and the Balanced Fund may write covered call options. A risk in
writing a call option is that the Fund gives up the opportunity of profit if the
market price of the underlying security increases. The Fund realizes a gain upon
the expiration of a written call option. When a written call option is closed
prior to expiration by being exercised, the proceeds of the sale are increased
by the amount of original premium received.
EXPENSES -- Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses of the Trust are prorated to the
Funds on the basis of relative net assets. Class specific expenses, such as
12b-1 fees, are borne by that class. Income, other expenses and accumulated
realized and unrealized gains and losses of a Fund are allocated to the
respective class on the basis of the relative net assets each day.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income are
declared and paid on a quarterly basis for the Equity Fund. The Balanced Fund
declares and pays its dividend on a monthly basis. The Bond Funds declare
dividends on a daily basis and pays them on the first business day of the
following month. Any net realized capital gains on sales of securities for a
Fund are distributed to its shareholders at least annually.
FEDERAL INCOME TAXES -- The Trust's policy is to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Accordingly, no
provision for Federal income taxes is required in the financial statements.
ORGANIZATION COSTS -- Organizational costs have been capitalized by the Funds
and are being amortized over sixty months commencing with operations. In the
event any of the initial shares of a Fund are redeemed by any holder thereof
during the period that the Fund is amortizing its organizational costs, the
redemption proceeds payable to the holder thereof by the Fund will be reduced by
the unamortized organizational costs in the same ratio as the number of initial
shares being redeemed bears to the number of initial shares outstanding at the
time of redemption.
3. INVESTMENT ADVISORY AND CUSTODIAL SERVICES
================================================================================
Pursuant to an investment advisory agreement dated December 27, 1994,
investment advisory services are provided to the Funds by First Security
Investment Management, Inc. (the "Adviser"). The Adviser is entitled to receive
an annual fee of 0.74% of the average daily net assets of the Stock Funds and
0.60% of the average daily net assets of the Bond Funds. Such fee is computed
daily and paid monthly. During the six month period ended July 31, 1996, the
Adviser voluntarily waived a portion of its fees in order to limit operating
expenses.
The Trust and CoreStates Bank (the "Custodian") are parties to a custodial
agreement dated December 27, 1994, under which the Custodian holds cash,
securities and other assets of the Trust, as required by the Investment Company
Act of 1940. In its capacity as custodian to the Trust, the Custodian plays no
role in determining the investment policies of the Trust or which securities are
to be purchased or sold in the Funds.
(CONTINUED)
29
<PAGE>
JULY 31, 1996
Notes to Financial Statements (CONTINUED)
(UNAUDITED)
4. ADMINISTRATIVE, TRANSFER AGENT AND DISTRIBUTION SERVICES
================================================================================
Pursuant to an administrative agreement dated December 27, 1994, SEI Fund
Resources ("SFR") acts as the Trust's Administrator. Under the terms of such an
agreement, SFR is entitled to receive an annual fee of 0.20% of the average
daily net assets of the Equity Fund, Balanced Fund, Intermediate Term Bond Fund,
and the Short-Term Bond Fund. The Administrator is entitled to a fee from the
Short Term Municipal Bond Fund and the Idaho Municipal Bond Fund in an amount
equal to the greater of 0.20% of their daily net assets or $100,000 per annum.
The Administrator has voluntarily agreed to waive a portion of its fee for the
six month period ended July 31, 1996 for the Short Term Municipal Bond Fund and
the Idaho Municipal Bond Fund in order to limit operating expenses.
Pursuant to an agreement dated December 27, 1994, DST Systems, Inc. ("DST")
acts as the Transfer Agent of the Trust. As such, DST provides transfer agency,
dividend disbursing, shareholder servicing and administrative services for the
Trust.
SEI Financial Services Company ("SFS"), a wholly owned subsidiary of SEI
Corporation, acts as the Trust's Distributor pursuant to a distribution
agreement dated December 27, 1994. The Distributor receives no fee for its
services in connection with distribution of the Institutional shares. The Trust
has adopted a Distribution Plan (the "Plan") on behalf of the Retail Class A
shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. The Plan
provides for the payment by the Trust to the Distributor of up to .25% of the
average daily net assets of the Retail Class A shares.
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust.
30
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
5. INVESTMENT TRANSACTIONS
================================================================================
The cost of security purchases and the proceeds from the sale of
securities, other than short-term investments, for the period ended July 31,
1996 are presented below for the Funds. On July 31, 1996 the total cost of
securities and the net realized gains and losses on securities sold for federal
income tax purposes was not materially different from amounts reported for
financial reporting purposes. The aggregate gross unrealized gain or loss on
securities at July 31, 1996 for each fund is as follows:
FUND INVESTMENT TRANSACTIONS (000)
<TABLE>
<CAPTION>
SHORT TERM IDAHO
INTERMEDIATE SHORT MUNICIPAL MUNICIPAL
EQUITY BALANCED TERM BOND TERM BOND BOND BOND
FUND FUND FUND FUND FUND FUND
====== ======== ============ ========= ========= =========
<S> <C> <C> <C> <C> <C> <C>
Purchases
U.S. Government Securities $ -- $ 3,007 $14,537 $2,016 $ -- $ --
Other 70,841 39,115 10,123 5,968 2,573 2,755
Sales
U.S. Government Securities -- 4,410 12,231 2,011 -- --
Other 61,444 37,705 4,578 4,023 5,063 1,714
Aggregate gross unrealized gain 17,835 12,330 708 198 214 490
Aggregate gross unrealized loss (8,505) (5,041) (2,455) (369) (61) (175)
------- ------- ------- ------ ------ ------
Net unrealized gain (loss) $ 9,330 $ 7,289 ($1,747) ($ 171) $ 153 $ 315
======= ======= ======= ====== ====== ======
</TABLE>
31
<PAGE>
JULY 31, 1996
Notes to Financial Statements (CONTINUED)
(UNAUDITED)
6. CONCENTRATION OF CREDIT RISK
================================================================================
The Short Term Municipal Bond Fund and the Idaho Municipal Bond Fund invest
in debt instruments of municipal issuers. The issuer's ability to meet their
obligations may be affected by economic developments in a specific state or
region. The Idaho Municipal Bond Fund invests primarily in obligations of
municipalities located in Idaho. The Short Term Municipal Bond Fund and the
Idaho Municipal Bond Fund invest in securities which include revenue bonds, tax
exempt commercial paper, tax and revenue anticipation notes, and general
obligation bonds. At July 31, 1996, the percentage of total value of investments
by each revenue source was as follows:
SHORT TERM IDAHO
MUNICIPAL MUNICIPAL
BOND FUND BOND FUND
========== =========
Cash Equivalents 2% 5%
Education Bonds -- 6%
General Obligation 61% 75%
Hospital Bonds -- 6%
Public Facility Bonds 9% --
Other Revenue Bonds 10% 2%
Tax Anticipation Notes -- 2%
Transportation Bonds 6% --
Utility Bonds 12% 4%
---- ----
100% 100%
==== ====
Many municipalities insure their obligations with insurance underwritten by
insurance companies that undertake to pay a holder, when due, the interest and
principal amount on an obligation if the issuer defaults on its obligation.
Although bond insurance reduces the risk of loss due to default by the issuer,
there is no assurance that the insurance company will meet its obligations.
Also, some of the securities have credit enhancements (letters of credit or
guarantees issued by third party domestic or foreign banks or other
institutions). At July 31, 1996, 27% and 61% of the total value of the Short
Term Municipal Bond Fund and Idaho Municipal Bond Fund, respectively, were
insured or had credit enhancements.
The ratings of debt holdings by Standard & Poor's or Moody's as a
percentage of total value of investments at July 31, 1996 are as follows:
IDAHO
SHORT TERM MUNICIPAL
INTERMEDIATE TERM SHORT TERM MUNICIPAL BOND BOND
BOND FUND BOND FUND FUND FUND
================= ========== ============== =========
AAA 67% 40% 28% 66%
AA+ -- -- 16% --
AA 3% -- 27% 16%
AA- 5% 4% 2% 2%
A+ 10% 21% 15% 3%
A 9% 29% 8% 12%
A- 6% 6% 4% 1%
---- ---- ---- ----
100% 100% 100% 100%
==== ==== ==== ====
32
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
7. LINE OF CREDIT
================================================================================
Pursuant to a credit agreement dated October 11, 1995, Morgan Guaranty
Trust Company of New York provides revolving credit loans to the Funds for
short-term or emergency purposes, such as funding shareholder redemptions. These
loans are for the respective benefit of and repayable from the respective assets
of the Funds. The aggregate principal amount over all Funds in the Trust may not
exceed $10,000,000. The aggregate amount of all loans outstanding to an
individual Fund shall not exceed 5% of the total net assets of that Fund.
(CONCLUDED)
33
<PAGE>
[This page is intentionally left blank]
<PAGE>
The Achievement Funds
BOARD OF TRUSTEES
Frederick A. Moreton, Jr.
Robert G. Love
August Glissmeyer, Jr.
Carl S. Minden
George L. Denton, Jr.
INVESTMENT ADVISER
First Security Investment Management, Inc.
Salt Lake City, UT 84111
ADMINISTRATOR
SEI Fund Resources
Wayne, PA 19087
DISTRIBUTOR
SEI Financial Services Company
Wayne, PA 19087
LEGAL COUNSEL
Ballard Spahr Andrews & Ingersoll
Philadelphia, PA 19103
INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
Princeton, NJ 08540
CUSTODIAN
CoreStates Bank, N.A.
Philadelphia, PA 19101
