[GRAPHIC OMITTED]
(Mountain Photo)
THE
ACHIEVEMENT
FUNDS
[LOGO OMITTED] FOR YOUR LIFE'S JOURNEY
ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 1996
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders.............................. 1
Fund Objectives..................................... 3
Performance Highlights.............................. 4
Investment Adviser's Report......................... 5
Management's Discussion & Analysis.................. 8
Financial Statements................................ 16
- -------------------------------------------------------
THE ACHIEVEMENT FUNDS
ANNUAL REPORT
JANUARY 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
THE
ACHIEVEMENT
FUNDS
[LOGO OMITTED] FOR YOUR LIFE'S JOURNEY
<PAGE>
LETTER TO SHAREHOLDERS
[Photo of Moreton and Rudisill omitted]
FREDERICK A. MORETON, JR. JOHN L. RUDISILL
CHAIRMAN MANAGER
THE ACHIEVEMENT FUNDS FAMILY OF MUTUAL FUNDS HAS COMPLETED ITS FIRST FULL YEAR
OF OPERATIONS, AND WHAT A YEAR IT WAS! WE ARE PLEASED TO PROVIDE YOU, OUR
SHAREHOLDERS, WITH A SOLID PERFORMANCE REPORT FOR FISCAL 1995-96. WE WOULD ALSO
LIKE TO SHARE SOME OF OUR THOUGHTS ABOUT WHAT THE COMING YEAR MAY HAVE IN STORE
FOR OUR FUNDS AND THE MARKET IN GENERAL.
THE RECENTLY COMPLETED YEAR WAS A GREAT ONE FOR LAUNCHING OUR NEW FAMILY OF
FUNDS. AS YOU WILL SEE, IT PROVIDED OUR INITIAL SHAREHOLDERS WITH FIRST YEAR
RETURNS WHICH COMPARED FAVORABLY WITH APPLICABLE MARKET INDEXES. WE LOOK FORWARD
TO CONTINUED GROWTH THIS YEAR.
DURING FISCAL 1995-96, STERLING K. JENSON WAS APPOINTED PRESIDENT AND CEO OF
FIRST SECURITY INVESTMENT MANAGEMENT, INC., YOUR FUNDS' INVESTMENT ADVISER. MR.
JENSON BRINGS TO HIS NEW ROLE, NEARLY 20 YEARS OF INVESTMENT MANAGEMENT
EXPERIENCE AND A PROVEN MANAGEMENT STYLE WHICH WE BELIEVE WILL ADD GREAT VALUE
TO OUR PROGRAM. HE AND HIS PROFESSIONAL STAFF ARE FULLY COMMITTED TO A
PHILOSOPHY OF PROVIDING SOLID INVESTMENT MANAGEMENT SERVICES TO MAXIMIZE
LONG-TERM SHAREHOLDER VALUE RATHER THAN FOCUSING SOLELY ON THE SHORT TERM.
INCLUDED IN THIS ANNUAL REPORT IS MR. JENSON'S DISCUSSION OF THE MARKET
CONDITIONS WHICH IMPACTED OUR FUNDS' PERFORMANCE AND HIS VIEWS ON WHAT THE
MARKET MAY HAVE IN STORE FOR INVESTORS IN THE UPCOMING YEAR.
THE EQUITY AND BOND MARKETS WE EXPERIENCED IN 1994 AND 1995 HAVE CREATED BOTH
OPTIMISM AND SOME DEGREE OF ANXIETY FOR INVESTORS. AS WE STATED IN LAST YEAR'S
LETTER, THIS SITUATION IS MOST ALARMING TO THE SHORT-TERM INVESTOR WHO IS MUCH
LIKE A PERSON RIDING A ROLLER COASTER. THIS INVESTOR TRIES TO ANTICIPATE THE
HIGHS AND BRACE FOR THE LOWS AND FINDS THE PROCESS FRAUGHT WITH DIFFICULTY. IN
CONTRAST, THE LONG-TERM INVESTOR UNDERSTANDS THE CYCLICAL NATURE OF THE MARKET
AND TRIES TO ACHIEVE MORE STABLE RETURNS THROUGH KNOWLEDGEABLE INVESTMENT
SELECTIONS AND PRUDENT DIVERSIFICATION STRATEGIES. AS A RESULT, LONG-TERM
INVESTORS ARE MUCH LESS SENSITIVE TO MARKET EXTREMES AND ULTIMATELY ENJOY
GREATER LEVELS OF ACCUMULATED VALUE THAN DO SHORT-TERM INVESTORS. YOUR
INVESTMENT MANAGER AND BOARD OF TRUSTEES SHARE THIS LONGER TERM VIEW, WHICH IS
REFLECTED IN OUR APPROACH TO THE ACHIEVEMENT FUNDS.
1
<PAGE>
IN SUMMARY, WE VIEW THE FUTURE THROUGH AN OPTIMISTIC LENS. WE WELCOME YOUR
COMMENTS AND URGE YOU TO CONTACT YOUR BROKER, TRUST OFFICER OR OTHER INVESTMENT
PROFESSIONAL WITH ANY QUESTIONS YOU MAY HAVE ABOUT YOUR ACHIEVEMENT FUNDS
INVESTMENT. OR, SIMPLY CALL OUR INVESTMENT SERVICES DEPARTMENT AT
1-800-472-0577.
AS ALWAYS, YOUR SUPPORT AND COMMITMENT TO THE ACHIEVEMENT FUNDS PROGRAM ARE
IMPORTANT TO US AND VERY MUCH APPRECIATED.
/s/FEDERICK A. MORETON, JR.
FEDERICK A. MORETON, JR.
CHAIRMAN OF THE BOARD OF TRUSTEES
The Achievement Funds Trust
/s/JOHN L. RUDISILL
JOHN L. RUDISILL
SENIOR VICE PRESIDENT AND MANAGER
Mutual Fund Center
First Security Corporation
2
<PAGE>
Fund Objectives THE ACHIEVEMENT FUNDS
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.
===============================================================================
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>
PERFORMANCE HIGHLIGHTS OF THE FUNDS
FOR THE PERIOD ENDED JANUARY 31, 1996
<TABLE>
<CAPTION>
===================================================================================================================================
THE ACHIEVEMENT FUNDS Total Net Assets Total Return Total Return NAV Share Price NAV Share Price 30-Day Distributions
(in millions) Since Inception One Year 1/31/95 1/31/96 SEC Yield Per Share
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EQUITY INSTITUTIONAL $151.0 35.73% 32.55% $10.24 $12.64 1.14% $0.89
FUND RETAIL CLASS A 1.8 28.93 -- -- 12.65 0.85 0.87
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED INSTITUTIONAL 147.4 26.64 24.15 10.20 11.79 2.66 0.81
FUND RETAIL CLASS A 1.7 21.43 -- -- 11.78 2.30 0.73
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE INSTITUTIONAL 115.3 15.37 13.62 10.09 10.79 4.95 0.70
TERM BOND FUND RETAIL CLASS A 1.0 12.16 -- -- 10.82 4.54 0.55
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM INSTITUTIONAL 75.6 8.65 7.80 10.02 10.18 4.75 0.65
BOND FUND RETAIL CLASS A -- 6.83 -- -- 10.18 4.43 0.52
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM
MUNICIPAL INSTITUTIONAL 31.3 7.17 6.71 10.01 10.23 3.28 0.47
BOND FUND RETAIL CLASS A .2 6.32 -- -- 10.25 2.99 0.38
- -----------------------------------------------------------------------------------------------------------------------------------
IDAHO MUNICIPAL INSTITUTIONAL 25.9 14.64 12.68 10.13 10.80 3.96 0.63
BOND FUND RETAIL CLASS A 3.1 11.36 -- -- 10.83 3.56 0.52
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
[GRAPHIC OMITTED]
A bar graph depicting the total returns cumulative since inception to
January 31, 1996 for The Achievement Funds. The plot points are as follows:
FUND TOTAL RETURN CUMULATIVE SINCE INCEPTION
Equity Fund - Institutional 35.73
Equity Fund - Retail Class A 28.93
Balanced Fund - Institutional 26.64
Balanced Fund - Retail Class A 21.43
Intermediate Term Bond Fund - Institutional 15.37
Intermediate Term Bond Fund - Retail Class A 12.16
Short Term Bond Fund - Institutional 8.65
Short Term Bond Fund - Retail Class A 6.83
Short Term Municipal Bond Fund - Institutional 7.17
Short Term Municipal Bond Fund - Retail Class A 6.32
Idaho Municipal Bond Fund - Institutional 14.64
Idaho Municipal Bond Fund - Retail Class A 11.36
PERFORMANCE DATA REPRESENTS PAST RESULTS AND ARE NO GUARANTEE OF FUTURE RESULTS.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. YIELD
FLUCTUATES. YIELD REFLECTS THE PORTFOLIO'S EARNING POWER, NET OF FUND EXPENSES.
4
<PAGE>
Investment Adviser's Report THE ACHIEVEMENT FUNDS
[GRAPHIC OMITTED PHOTO OF STERLING K. JENSON]
STERLING K. JENSON
1995 proved to be an extraordinary year for the stock and bond markets. Positive
returns defied even the most optimistic forecasts. We must remember, however,
that 1994 recorded abysmal stock market returns and the worst bond market in
over 60 years. The pessimism which lingered into the start of 1995 colored many
future expectations. In early 1995, the Federal Reserve had increased rates six
times over the previous twelve months with several additional hikes looming on
the horizon. The stock market grew increasingly concerned that the Fed would
overshoot the mark and create a recession which would hurt corporate earnings.
As it turned out, the economy slowed sufficiently in early 1995 to curb
excessive economic growth and accompanying fears of inflation. The Fed
engineered a nearly perfect economic soft landing, creating an environment of
both declining interest rates and growing corporate profits. While choppy, the
pace of economic growth last year was, in the aggregate, certainly adequate.
We now enter 1996 with market interest rates approaching their prior low point
of 1993. Twice in the past four years the bond market has bounced back and forth
between 8% and 6%. We believe that the 1996 low-interest-rate environment is
based on a firmer and more sustainable foundation than that of 1993. At that
time, the bond market evidenced both remnants of a recessionary headwind
retarding growth and speculation. Conversely, in 1996, the financial market's
rally is based upon the following positive points: (1) A proven track record of
containing inflation, (2) The prospect of a balanced federal budget, (3) An
accommodative monetary policy, (4) A U.S. economy ranked most competitive in the
world, and (5) A healthy financial sector. Granted, the current financial market
rally appears to assume that everything will work out just right in 1996. Rarely
does that ever happen. Nevertheless, with no serious imbalances, the chance of
recession in 1996 seems highly remote. Furthermore, by the end of the year, the
pace of economic growth should be improving-not declining.
STOCK MARKET REVIEW
- -------------------------------------------------------------------------------
The Dow Jones Industrial Average began 1995 at 3834 with low expectations for
much improvement. Approximately 60 percent of institutional investors were
bearish on the market at that time. It appeared that the Fed overshot the mark
with its interest rate hikes, steering the economy toward a recession. Growth
did slow, but corporate profits grew better than expected to beat Wall Street
analysts' projections by a wide margin. This earnings growth, coupled with
declining interest rates, provided the one-two punch that drove the Dow to a
record high 5117 by the end of 1995, a price gain of 1283 points-or 33.5%.
In contrast to a year ago, many in the market are now optimistic. The positive
forces may continue well into 1996, driving the market into even higher-record-
territory.
5
<PAGE>
THE ACHIEVEMENT FUNDS
Six major catalysts for positive stock price performance should continue into
1996. First, stable to lower interest rates should reduce corporate costs of
capital and make future corporate earnings more attractive in present value
calculations. Price/earnings ratios should expand as a consequence. Second,
moderate Gross Domestic Product (GDP) growth-in the area of 2%-should allow for
earnings growth without inflation. Third, earnings growth, coupled with
continued corporate restructurings and stock buybacks, should generate a total
earnings-per-share increase of 10%. on average for the year. The fourth
catalysts is, perhaps, the biggest factor. Demand for stock investments is
exploding. The aging/saving population in the United States is expanding, with
the front edge of the maturing Baby Boomer generation breaching 50 years of age.
Boomers are pouring money into stock mutual funds through 401k and IRA programs.
This positive cash flow into stocks should continue into the foreseeable future
S&P 500 Index
[GRAPHIC OMITTED]
A line graph depicting the change in price of the Standard & Poor's 500 Index
from January 31, 1995 through January 31, 1996. The plot points are as follows:
Plot Points:
1/31/95 470.42
4/28/95 514.71
7/31/95 562.06
10/31/95 581.50
1/31/96 636.02
and should lift stock prices. Fifth, a strengthening dollar should encourage
foreign investors back into our markets. And sixth, the dramatic shift in the
political environment to a more conservative fiscal philosophy has stimulated
the markets. The prospects of deficit reduction and the related emphasis on
dismantling decades of entitlement spending should decrease the dependency of
the U.S. government on the bond market, thus helping to stabilize interest rates
and freeing up capital for investment in the private sector.
Surprisingly, the market's valuation has remained attractive in spite of its
blistering performance. Given corporate earnings growth expected at 10% for 1996
plus relatively level interest rates, the stock market returns for the year
could exceed 15%. This would be below last year's performance but certainly very
attractive measured against other investment choices.
BOND MARKET REVIEW
- -------------------------------------------------------------------------------
Following 1994's bond market correction-the worst in recent history-the bond
rally of 1995 was welcomed heartily. The U.S. Treasury market ended 1994 with
yield-to-maturities of 7.16% (1 year), 7.83% (5-years), and 7.88% (30 years).
1995 concluded with yield-to-maturities of 5.13%, 5.37% and 5.95%, respectively.
Reversing the 1994 total return of -2.92%, the Lehman Aggregate Bond Index,
propelled by the decline in interest rates, roared back with a return of 18.48%.
In 1994, the Federal Reserve increased the Fed Funds target rate by 250 basis
points, or 2.50%, from 3.00% to 5.50%. This reflected a bid to fight off
potential inflation in the midst of a strong economy.
6
<PAGE>
THE ACHIEVEMENT FUNDS
Lehman Aggregate Bond Index
[GRAPHIC OMITTED]
A line graph depicting the change in price of the Lehman Aggregate Bond Index
from January 31, 1995 through January 31, 1996. The plot points are as follows:
Plot Points:
1/31/95 485.89
4/28/95 511.93
7/31/95 538.84
10/31/95 561.33
1/31/96 585.18
The Fed completed the tightening cycle in February 1995 with the target rate
moved to 6.00%. In July, responding to benign inflation figures and an outlook
for a slower growth economy, the Fed began an easing cycle with a 25 basis point
reduction in the target rate and an additional 25 basis point reduction at the
end of the year. This left Fed Funds at 5.50%. The easing cycle has continued
into 1996 with a third 25 basis point easing in January reducing the Fed Funds
level to 5.25%.
In addition to encouraging inflation figures and economic reports, the
expectation that Congress and the President may agree on how to balance the
budget within a seven-year time frame also fueled the bond market rally. The
market witnessed increased volatility as investors reacted to the mood and
rhetoric coming from the negotiations-or lack thereof. If an agreement is not
reached, or if the agreement is perceived to be watered down, disappointment may
surface and a short-term negative reaction may well emerge in the market.
However, we expect any increase in bond rates to be short lived since economic
growth remains slow, inflation remains low, and the Fed is likely to continue
its easing cycle as is reflected in short-term rates.
While bond market volatility is expected to continue, rates should decline
somewhat during the first half, then rise again near the end of the year.
Presidential election year politics, with renewed attention to the flat tax,
could make tax-exempts more volatile than taxable fixed-income instruments.
Nevertheless, municipals still represent a fair value for high tax bracket
investors.
IN SUMMARY
- -------------------------------------------------------------------------------
Interest rates remain positive for the market. The profit outlook and investment
cash-flows also look positive for 1996. The equity market should remain up with
returns above 15% possible. Stock selectivity will be key for the next year.
Corporations that can generate growing revenues and expanding profit margins
will receive the most favorable stock price action. Bonds should generate
positive returns, mostly from coupon income. Our research skills will be more
important than ever in 1996 because high absolute returns will be harder to
achieve. There is a bear market out there somewhere, but it doesn't seem close
at hand.
/s/Sterling K. Jenson
Sterling K. Jenson
PRESIDENT
First Security Investment Management, Inc.
Investment Adviser
7
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
OF FUND PERFORMANCE
ACHIEVEMENT EQUITY FUND
- -------------------------------------------------------------------------------
The Achievement Equity Fund seeks long-term capital appreciation with current
income as a secondary consideration. The Fund should interest investors who seek
capital appreciation over the long-term to satisfy a future goal such as
retirement. Long-term investing means assuming the risks associated with
investing in the stock market in return for expected long-term rewards.
For the fiscal year ending January 31, 1996, the Fund's Institutional Class
provided a total return of 32.6%; since inception on December 28, 1994, it is up
35.7%. The S&P 500 Index, measuring Growth Stock Fund performance, returned
38.7% for the year ending January 31, 1996.
The Fund invests in medium to large capitalization companies that are seasoned
in their businesses through many economic cycles. Selected stocks show good
growth in earnings yet are priced attractively in relation to those earnings.
The only derivative action allowed in the portfolio is covered-call writing as
described in the prospectus. The Fund may write covered-call options as a means
of increasing the yield of the portfolio and as a way to provide limited
protection against decreases in the market value of portfolio securities. No
other derivative products are utilized in managing the Fund.
The portfolio is diversified with the average weighting per stock at less than
2% of the total. Sector weightings will be moderately over- or under-weighted to
the S&P 500 Index based on our economic and market outlook. Performance
differences between the Fund and the Index will, therefore, be determined by the
sector weighting differences and individual stock selections.
Presently, the Achievement Equity Fund is overweighted in the technology,
capital goods, energy, and transportation sectors, with the expectation of
continued
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Equity Fund, Institutional Class versus the Standard
& Poor's 500 Composite Index
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Equity
Fund, Institutional Class from December 31, 1994 through January 31, 1996 as
compared with the growth of a $10,000 investment in the Standard & Poor's 500
Index over the same time period. The plot points are as follows:
Plot Points:
Achievement Standard
12/31/94 10,000 10,000
1/31/95 10,291 10,259
1/31/96 13,641 14,225
Average Annual Total Return
- -------------------------------------------------------------------------------
One Year Annualized
Return Inception to Date
Achievement Equity Fund, ------------------------------------------------
Institutional Class 32.55% 32.24%
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Equity Fund, Retail Class A versus the Standard
& Poor's 500 Composite Index
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Equity
Fund, Retail Class A from March 31, 1995 through January 31, 1996 as compared
with the growth of a $10,000 investment in the Standard & Poor's 500 Index over
the same time period. The plot points are as follows:
Plot Points:
Achievement Standard
3/31/95 9,500 10,000
1/31/96 11,982 12,963
Average Annual Total Return
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Annualized Cumulative
Achievement Equity Fund, Inception to Date Inception to Date
Retail Class A 32.34% 28.93%
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with load 25.73% 23.08%
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Past performance of the Fund is not predictive of future performance.
8
<PAGE>
THE ACHIEVEMENT FUNDS
economic growth and corporate capital spending. Consumer cyclical, staple, and
service sectors are underweighted due to sluggish consumer spending patterns.
Financial and utility sectors are likewise underweighted due to slowing earnings
prospects. Of course, these weightings may change as we continue to monitor the
economy.
THE ACHIEVEMENT
BALANCED FUND
- -------------------------------------------------------------------------------
The Achievement Balanced Fund seeks both income and capital appreciation
consistent with prudent investment risk. The Fund attempts to "walk the line"
between growth and income by taking advantage of the potential for growth
offered by stocks and the income offered by bonds.
For the fiscal year ending January 31, 1996, the Institutional Class of the Fund
produced a total return of 24.15%. Its benchmark, the weighted average of the
Lehman Intermediate Government/Corporate Bond Index and S & P 500, had a total
return of 26.44%.
The Fund did not match its benchmark because it maintained a conservative
mixture of stocks and bonds-as well as cash equivalents ranging from 5% to
10%-throughout most of the year in spite of bullish bond and stock markets.
The portfolio's bond allocation maintained a slightly longer maturity and
duration than the Lehman Index. Over the year, the yield curve lowered and
flattened significantly. The Fund participated in the resulting positive
performance through an average bond allocation of 40%. The portfolio's equity
allocation invests in medium to large capitalization companies seasoned in their
businesses through numerous economic cycles. Selected stocks demonstrate good
growth in earnings yet are priced attractively in relation to those earnings.
The portfolio maintained a highly diversified position throughout the year with
the average weighting per stock between 1% and 2%. Sector weighting was also
conservative with slight variations relative to the S & P 500. The Fund
determines sector allocations by overlaying a macro economic forecast upon
individual stock ideas.
Looking forward, we expect both the bond and stock markets to have positive
returns this year. The market now expects the Federal Reserve to continue to
lower short-term interest rates in 1996. The portfolio's bond allocation
currently has an average maturity and duration that is longer than the Lehman
Index to take advantage of our expectation that interest rates will drop this
year. Lower interest rates make companies' earnings more valuable. Therefore,
unless a recession ensues, we expect stocks to perform positively in 1996. The
Fund has positioned its stock allocation to take advantage of an environment in
which interest rates drop, the economy slows but does not go into a recession,
and companies' earnings maintain positive growth rates. Currently the fund is
overweighted in capital goods and technology, areas that should show strong
earnings growth in the slow-growth economy we forecast. The Achievement Balanced
Fund will actively change both its asset class allocation and individual
security positions in response to any changes in the market or economy.
9
<PAGE>
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Balanced Fund, Institutional Class versus the Standard
& Poor's 500 Composite Index, and the Lehman Intermediate
Government/Corporate Bond Index
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement
Balanced Fund, Institutional Class from December 31, 1994 through January 31,
1996 as compared with the growth of a $10,000 investment in the Standard &
Poor's 500 Index and the Lehman Intermediate Government/Corporate Bond Index
over the same time period. The plot points are as follows:
Plot Points:
Achievement Standard Lehman
12/31/94 10,000 10,000 10,000
1/31/95 10,231 10,259 10,168
1/31/96 12,702 14,225 11,630
Average Annual Total Return
- --------------------------------------------------------------------------------
One Year Annualized
Return Inception to Date
Achievement Balanced Fund, ------------------------------------------
Institutional Class 24.15% 24.11%
- --------------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Balanced Fund, Retail Class A versus the Standard
& Poor's 500 Composite Index and the Lehman Intermediate
Government/Corporate Bond Index
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement
Balanced Fund, Retail Class A from March 31, 1995 through January 31, 1996 as
compared with the growth of a $10,000 investment in the Standard & Poor's 500
Index and the Lehman Intermediate Government/Corporate Bond Index over the same
time period. The plot points are as follows:
Plot Points:
Achievement Standard Lehman
3/31/95 9,500 10,000 10,000
1/31/96 11,377 12,963 11,142
Average Annual Total Return
- --------------------------------------------------------------------------------
Annualized Cumulative
Inception to Date Inception to Date
Achievement Balanced Fund, -------------------------------------------
Retail Class A 23.88% 21.43%
- --------------------------------------------------------------------------------
with load 17.71% 15.94%
- --------------------------------------------------------------------------------
Past performance of the Fund is not predictive of future performance.
- --------------------------------------------------------------------------------
THE ACHIEVEMENT
INTERMEDIATE TERM BOND FUND
- --------------------------------------------------------------------------------
The Achievement Intermediate Term Bond Fund seeks to provide income consistent
with prudent investment risk and maintenance of appropriate liquidity. Fund
volatility is managed based upon economic, capital market, and interest rate
expectations.
The Fund should be considered by investors desiring a relatively stable
income-producing investment with managed volatility and who prefer a mutual fund
comprised of high-quality securities rated A or higher by a nationally
recognized rating agency at the time of purchase.
Individual bond purchases are based upon credit quality and yield-to-maturity
spreads over comparable risk-free investments. Additionally, they are analyzed
for their impact on the Fund as a whole in such areas as average maturity,
duration, allocation, sector weighting, and diversification.
In an extremely bullish 1995 for both stocks and bonds, the Institutional Class
of the Fund generated a total return of 13.6% for the fiscal year ending January
31, 1996. In comparison, the Lehman Intermediate Government/Corporate Bond Index
posted a return of 14.4%. The Fund also compares very favorably with a similar
mutual fund peer group, the Lipper Short Investment Grade Debt Funds, which
posted an average total return of 10.9%.
The Fed Funds target rate, now at 5.25%, is approximately 50 basis points, or
one half of one percent, above the current one year U.S. Treasury bill rate.
10
<PAGE>
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Intermediate Term Bond Fund, Institutional Class,
versus the Lehman Intermediate Government/Corporate Bond Index
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement
Intermediate Term Bond Fund, Institutional Class from December 31, 1994 through
January 31, 1996 as compared with the growth of a $10,000 investment in the
Lehman Intermediate Government/Corporate Bond Index over the same time period.
The plot points are as follows:
Plot Points:
Achievement Lehman
12/31/94 10,000 10,000
1/31/95 10,147 10,168
1/31/96 11,529 11,630
Average Annual Total Return
- --------------------------------------------------------------------------------
One Year Annualized
Return Inception to Date
------------------------------------
Achievement Intermediate Term
Bond Fund, Institutional Class 13.62% 13.97%
- --------------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Intermediate Term Bond Fund, Retail Class A versus
the Lehman Intermediate Government/Corporate Bond Index
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement
Intermediate Term Bond Fund, Retail Class A from March 31, 1995 through
January 31, 1996 as compared with the growth of a $10,000 investment in the
Lehman Intermediate Government/Corporate Bond Index over the same time period.
The plot points are as follows:
Plot Points:
Achievement Lehman
3/31/95 9,650 10,000
1/31/96 10,693 11,142
Average Annual Total Return
- --------------------------------------------------------------------------------
Annualized Cumulative
Achievement Intermediate Term Inception to Date Inception to Date
Bond Fund, Retail Class A 13.49% 12.16%
- --------------------------------------------------------------------------------
with load 9.10% 8.22%
- --------------------------------------------------------------------------------
Past performance of the Fund is not predictive of future performance.
This indicates that the market expects a slow growth economy along with
additional Fed easing and a general decline in interest rates in 1996. The
Intermediate Term Bond Fund is currently structured to take advantage of the
market's expectation, and that of First Security Investment Management, that
rates will continue downward through at least the first half of the year and
that the economy will continue in its slow growth pattern.
THE ACHIEVEMENT
SHORT TERM BOND FUND
- -------------------------------------------------------------------------------
The objective of The Achievement Short Term Bond Fund is to preserve principal
value and maintain a high degree of liquidity while providing current income.
The Fund should be considered by those investors who seek a high-quality,
relatively stable income-producing investment and are willing to accept a
moderate degree of risk.
The Fund seeks to achieve a total return over time greater than that of the
average money market fund. For the fiscal year ending January 31, 1996, the
Institutional Class of the Fund met this objective by posting a return of 7.80%
compared with the Donoghue Taxable Money Market Mutual Fund average of 5.30%.
The Fund also compared favorably with the Salomon Benchmark One Year Treasury
on-the-Run which returned 7.70% for the same period, with a slightly shorter
average weighted maturity.
The general economy, the direction of interest rates, and the Federal Reserve's
action remain the primary factors that continue to influence this Fund.
11
<PAGE>
Additionally, the short-term nature of the Fund generally make it less volatile
than intermediate or long-term funds. The Fund is restricted to purchasing
securities with a maximum three-year maturity. The weighted average maturity of
the Fund, as a whole, is not to exceed two years. The Fund ended the fiscal year
with an average weighted maturity of 1.31 years.
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Short Term Bond Fund, Institutional Class, versus the
Salomon 1-Year Treasury Benchmark on-the Run
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Short
Term Bond Fund, Institutional Class from December 31, 1994 through January 31,
1996 as compared with the growth of a $10,000 investment in the Salomon 1-Year
Treasury Benchmark on-the-Run over the same time period. The plot points are as
follows:
Plot Points:
Achievement Salomon
3/31/94 10,000 10,000
1/31/95 10,062 10,101
1/31/96 10,847 10,879
Average Annual Total Return
- --------------------------------------------------------------------------------
One Year Annualized
Return Inception to Date
Achievement Short Term ----------------------------------------
Bond Fund, Institutional Class 7.80% 7.89%
- --------------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Short Term Bond Fund, Retail Class A, versus the
Salomon 1-Year Treasury Benchmark on-the Run
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Short
Term Bond Fund, Retail Class A from March 31, 1995 through January 31, 1996 as
compared with the growth of a $10,000 investment in the Salomon 1-Year Treasury
Benchmark on-the-Run over the same time period. The plot points are as follows:
Plot Points:
Achievement Salomon
3/31/95 9,850 10,000
1/31/96 10,460 10,613
Average Annual Total Return
- --------------------------------------------------------------------------------
Annualized Cumulative
Achievement Short Term Inception to Date Inception to Date
Bond Fund, Retail Class A 7.55% 6.83%
- --------------------------------------------------------------------------------
with load 5.81% 5.25%
- --------------------------------------------------------------------------------
Past performance of the Fund is not predictive of future performance.
The Short Term Bond Fund is currently structured to benefit from the market's
expectation, and that of First Security Investment Management, that: (1) the
Federal Reserve will continue to lower the Fed Funds target rate in response to
a slow economy and controlled inflation, and (2) market rates will continue
generally downward at least for the first half of the year.
THE ACHIEVEMENT SHORT TERM
MUNICIPAL BOND FUND
- -------------------------------------------------------------------------------
The Achievement Short Term Municipal Bond Fund seeks the highest level of
current income exempt from federal income tax consistent with preservation of
capital. It is suited for conservative, risk-averse, high-tax bracket investors
who desire federal tax exemption coupled with relatively low volatility in share
price.
The Fund will generally maintain a dollar-weighted average portfolio maturity of
no more than three years and an individual security maturity of no more than
four years. At the end of January, 1995, the average weighted maturity was just
under one year in anticipation of the final tightening move by the Federal
Reserve. This occurred in February 1995.
During the post-tightening period in 1995, the Fund increased its average
weighted maturity to 2.46 years. This was achieved by the end of January, 1996.
By lengthening its averaged weighted maturity, the Fund was then able to
maintain a yield level for the Institutional Class at year end equal to 95% of
the yield twelve months earlier despite the declining interest rate environment
12
<PAGE>
Under normal market conditions, the Fund invests at least 80%-and up to 100%-of
its assets in municipal securities. The interest on these securities is exempt
from federal income tax. As of January 31, 1996, 100% of the Fund's investments
were exempt from both federal income taxes and the Alternative Minimum Tax
(AMT). Well diversified, the Fund's assets represent 22 states. During the
fiscal year ending January 31, 1996, share
Comparison of Change in the Value of a $10,000 Investment in the Achievement
Short Term Municipal Bond Fund, Institutional Class versus the Lehman 1-Year
Municipal Bond Index Achievement Short Term Municipal Bond Fund, Institutional
Class Lehman 1-Year Municipal Bond Index
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Short
Term Municipal Bond Fund, Institutional Class from December 31, 1994 through
January 31, 1996 as compared with the growth of a $10,000 investment in Lehman
Brothers 1-Year Municipal Index over the same time period. The plot points are
as follows:
Plot Points:
Achievement Lehman 1-Year
12/31/94 10,000 10,000
1/31/95 10,040 10,051
1/31/96 10,714 10,709
Average Annual Total Return
- --------------------------------------------------------------------------------
One Year Annualized
Return Inception to Date
Achievement Short Term Municipal ------------------------------------------
Bond Fund, Institutional Class 6.71% 6.54%
- --------------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Short Term Municipal Bond Fund, Retail Class A,
versus the Lehman 1-Year Municipal Bond Index
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Short
Term Municipal Bond Fund, Retail Class A from March 31, 1995 through January 31,
1996 as compared with the growth of a $10,000 investment in Lehman Brothers
1-Year Municipal Index over the same time period. The plot points are as
follows:
Plot Points:
Achievement Lehman 1-Year
3/31/95 9,850 10,000
1/31/96 10,382 10,513
Average Annual Total Return
- --------------------------------------------------------------------------------
Annualized Cumulative
Achievement Short Term Municipal Inception to Date Inception to Date
Bond Fund, Retail Class A 6.99% 6.32%
- --------------------------------------------------------------------------------
with load 5.25% 4.75%
- --------------------------------------------------------------------------------
Past performance of the Fund is not predictive of future performance.
price rose by 2.2%. The Fund paid $0.05 per share as realized capital gain
(taxed as ordinary income) in addition to the normal monthly tax-exempt income
payouts. For the fiscal year ending January 31, 1996, the Institutional Class of
the Fund realized a total return of 6.71% versus 6.55% for the Lehman Brothers
One Year Municipal Bond Index.
THE ACHIEVEMENT IDAHO
MUNICIPAL BOND FUND
- -------------------------------------------------------------------------------
The Achievement Idaho Municipal Bond Fund seeks to provide as high a level of
current income exempt from both Federal and Idaho income taxes as is consistent
with the preservation of capital. Income from the Fund is also exempt from
income taxes in several other states.
During the fiscal year ending January 31, 1996, the Institutional Class of the
Fund returned 12.68%. Throughout this period the Fund continued to extend its
weighted average maturity, and as a result, the adviser has elected to change
the Fund's benchmark from the Lehman Brothers Five Year Municipal Bond Index to
the Ten Year Municipal Bond Index. These indexes returned 11.37% and 15.36%,
respectively. This higher level of return represented a significant snap-back
from 1994, when most single-state funds reported poor results due to the effects
of the Orange County bankruptcy.
In 1995, the Fund gradually increased its weighted average maturity from 6.32
years to 11.61 years. This enabled the income payout at the end of the fiscal
year to equal 87% of the payout twelve months earlier despite declining interest
rates. Share value rose 6.6% and was accompanied by a capital gain payout of
$0.1155 per share.
13
<PAGE>
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Idaho Municipal Bond Fund, Institutional Class,
versus the Lehman 5-Year Municipal Bond Index, and the
Lehman 10-Year Municipal Bond Index
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Idaho
Municipal Bond Fund, Institutional Class from December 31, 1994 through January
31, 1996 as compared with the growth of a $10,000 investment in Lehman Brothers
5-Year Municipal Index and the Lehman Brothers 10-Year Municipal Index over the
same time period. The plot points are as follows:
Plot Points:
Achievement Lehman 5-Year Lehman 10-Year
12/31/94 10,000 10,000 10,000
3/31/95 10,179 10,124 10,259
1/31/96 11,470 11,275 11,835
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
One Year Annualized
Return Inception to Date
Achievement Idaho Municipal -----------------------------------------
Bond Fund, Institutional Class 12.68% 13.31%
- --------------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment in the
Achievement Idaho Municipal Bond Fund, Retail Class A,
versus the Lehman 5-Year Municipal Bond Index, and the
Lehman 10-Year Municipal Bond Index
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Idaho
Municipal Bond Fund, Retail Class A from March 31, 1995 through January 31, 1996
as compared with the growth of a $10,000 investment in Lehman Brothers 5-Year
Municipal Index and the Lehman Brothers 10-Year Municipal Index over the same
time period. The plot points are as follows:
Plot Points:
Achievement Lehman 5-Year Lehman 10-Year
3/31/95 9,600 10,000 10,000
1/31/96 10,566 10,835 11,069
Average Annual Total Return
- --------------------------------------------------------------------------------
Annualized Cumulative
Achievement Idaho Municipal Inception to Date Inception to Date
Bond Fund, Retail Class A 12.60% 11.36%
- --------------------------------------------------------------------------------
with load 7.59% 6.86%
- --------------------------------------------------------------------------------
Past performance of the Fund is not predictive of future performance.
At present, the Idaho Fund consists of nearly 96% Idaho issues (including 31
school districts), plus Puerto Rico (0.82% of total fund), as well as cash
reserves. The average maturity has been extended nearly to its limit of twelve
years as disclosed in the Fund's prospectus. During 1996, the Fund hopes to
maintain stability of share value and income payout in the face of election day
politics, tax reform, and Federal Budget uncertainties.
14
<PAGE>
[This Page Left Intentionally Blank]
15
<PAGE>
- -------------------------------------------------------------------------------
EQUITY FUND
- -------------------------------------------------------------------------------
[Pie Chart Graph Omitted]
Pie Chart depicting the asset allocation as of January 31, 1996 for the
Achievement Equity Fund. The breakdown is as follows.
Chemicals and Drugs: 12.0%
Consumer Products: 7.7%
Durable Goods: 36.4%
Financial: 9.4%
Oil-Energy: 10.9%
Retail: 1.8%
Utilities: 10.8%
Other: 11.0%
- ---------------------------------------------------
Market
Description Shares Value (000)
- ---------------------------------------------------
COMMON STOCKS -- 95.2%
AGRICULTURE -- 1.2%
Dole Food 48,000 $1,788
------
AIR TRANSPORTATION -- 1.7%
Delta Air Lines 38,000 2,598
------
AIRCRAFT -- 1.5%
Lockheed Martin 30,000 2,261
------
AUTOMOTIVE -- 2.5%
Ford Motor 50,000 1,481
General Motors 44,000 2,316
------
3,797
------
BANKS -- 2.7%
BankAmerica 43,000 2,897
NationsBank 18,000 1,258
------
4,155
------
BEAUTY PRODUCTS -- 1.8%
Colgate-Palmolive 38,000 2,812
------
CHEMICALS -- 3.4%
B.F. Goodrich 40,330 2,969
Monsanto 17,500 2,279
------
5,248
------
- -----------------------------------------------------
Market
Description Shares Value (000)
- -----------------------------------------------------
COMMUNICATIONS
EQUIPMENT -- 1.7%
DSC Communications* 90,000 $ 2,621
-------
COMPUTERS & SERVICES -- 2.1%
Cisco Systems* 38,000 3,163
-------
CONCRETE & MINERAL
PRODUCTS -- 1.7%
Armstrong World Industries 45,000 2,644
-------
DRUGS -- 8.4%
Bristol-Myers Squibb 32,000 2,832
Forest Laboratories* 70,000 3,780
Merck 37,600 2,641
Schering Plough 26,000 1,407
Warner Lambert 22,400 2,100
-------
12,760
-------
ELECTRICAL UTILITIES -- 3.5%
FPL Group 48,000 2,226
Texas Utilities 75,000 3,066
-------
5,292
-------
ENTERTAINMENT -- 1.5%
Walt Disney 36,000 2,313
-------
FINANCIAL SERVICES -- 3.5%
American Express 64,000 2,944
Federal National Mortgage
Association 68,000 2,346
-------
5,290
-------
FOOD, BEVERAGE &
TOBACCO -- 3.3%
PepsiCo 61,000 3,637
Sara Lee 42,400 1,431
-------
5,068
-------
GAS/NATURAL GAS -- 1.7%
Coastal 68,000 2,576
-------
INSURANCE -- 5.7%
Chubb 22,500 2,334
General Re 18,000 2,754
United Healthcare 56,800 3,571
-------
8,659
-------
MACHINERY -- 11.3%
Case 84,000 3,979
Deere 108,000 4,050
General Electric 53,600 4,114
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- -----------------------------------------------------
Market
Description Shares Value (000)
- -----------------------------------------------------
MACHINERY (CONTINUED)
Harnischfeger Industries 80,000 $ 2,710
Tyco Labs 65,600 2,321
-------
17,174
-------
MISCELLANEOUS BUSINESS
SERVICES -- 1.9%
Microsoft* 32,000 2,960
-------
PAPER & PAPER PRODUCTS -- 1.5%
International Paper* 56,000 2,289
-------
PETROLEUM & FUEL
PRODUCTS -- 1.7%
Schlumberger 37,100 2,602
-------
PETROLEUM REFINING -- 7.7%
Amoco 35,000 2,463
Exxon 43,000 3,451
Mobil 30,000 3,323
Royal Dutch Petroleum 18,700 2,599
-------
11,836
-------
REAL ESTATE -- 0.1%
Castle & Cooke* 15,998 224
-------
RETAIL -- 2.9%
Albertson's 50,700 1,730
Home Depot 60,000 2,760
-------
4,490
-------
SEMI-CONDUCTOR
INSTRUMENTS -- 7.4%
Altera* 50,000 3,294
Applied Materials* 80,000 2,960
Intel 40,000 2,209
Xilinx* 75,000 2,897
-------
11,360
-------
STEEL & STEEL WORKS -- 1.5%
Aluminum Company of America 40,000 2,220
-------
TELEPHONES &
TELECOMMUNICATION -- 9.8%
A T & T 54,000 3,611
Bell Atlantic 15,700 1,081
Bellsouth 67,600 2,898
MCI Communications 88,000 2,519
Qualcomm* 78,000 3,491
SBC Communications 23,800 1,348
-------
14,948
-------
- -----------------------------------------------------------------------
Market
Description Shares Value (000)
- -----------------------------------------------------------------------
TRUCKING -- 1.5%
TNT Freightways 125,000 $ 2,313
---------
TOTAL COMMON STOCKS
(Cost $119,944,077) 145,461
---------
REAL ESTATE INVESTMENT TRUST -- 0.8%
Security Capital Industrial Trust 69,700 1,246
---------
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $1,071,638) 1,246
---------
CASH EQUIVALENT -- 5.7%
SEI Daily Income Trust Money
Market Portfolio $4,494 4,494
SEI Daily Income Trust
Prime Obligation Portfolio 4,184 4,184
---------
TOTAL CASH EQUIVALENT
(Cost $8,677,677) 8,678
---------
TOTAL INVESTMENTS -- 101.7%
(Cost $129,693,392) 155,385
---------
OTHER ASSETS, LESS LIABILITIES-- (1.7%) (2,659)
---------
NET ASSETS:
Portfolio shares of Institutional Class
(unlimited authorization -- no par
value) based on 11,941,302 outstanding
shares of beneficial interest 123,767
Portfolio shares of Retail Class A
(unlimited authorization -- no par
value) based on 139,880 outstanding
shares of beneficial interest 1,680
Accumulated Net Realized
Gain on Investments 1,488
Net Unrealized Appreciation of Investments 25,692
Net Undistributed Investment Income 99
---------
TOTAL NET ASSETS-- 100.0% $ 152,726
=========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $12.64
=========
NET ASSET VALUE AND
REDEMPTION PRICE PER SHARE --
RETAIL CLASS A $12.65
=========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A (12.65 / 95.5%) $13.25
=========
- --------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
JANUARY 31, 1996
Statement Of Net Assets
- -------------------------------------------------------------------------------
BALANCED FUND
- -------------------------------------------------------------------------------
[Pie Chart Graph Omitted]
Pie Chart depicting the asset allocation as of January 31, 1996 for the
Achievement Balanced Fund. The breakdown is as follows.
Common Stocks: 55.8%
U.S. Government Securities: 27.5%
Corporate Securities: 10.9%
Other: 5.8%
- --------------------------------------------------------
FACE Market
Description Amount (000) Value (000)
- --------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 25.9%
U.S. Treasury Notes
7.250%, 11/30/96 $ 2,500 $ 2,544
8.125%, 02/15/98 2,000 2,120
7.875%, 04/15/98 2,500 2,649
7.000%, 04/15/99 2,500 2,639
8.000%, 08/15/99 2,000 2,182
7.750%, 11/30/99 2,500 2,720
7.750%, 02/15/01 2,500 2,772
7.875%, 08/15/01 2,500 2,804
7.500%, 05/15/02 2,500 2,781
6.250%, 02/15/03 2,500 2,614
7.250%, 05/15/04 2,500 2,774
7.250%, 08/15/04 1,500 1,668
7.875%, 11/15/04 2,500 2,891
7.500%, 02/15/05 2,000 2,265
6.500%, 08/15/05 3,000 3,193
---------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $35,733,810) 38,616
---------
- --------------------------------------------------------
Shares/Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 1.7%
Federal Home Loan Bank
6.490%, 09/08/97 $ 2,500 $ 2,553
---------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $2,446,895) 2,553
---------
CORPORATE BONDS -- 10.9%
Associates of North America MTN
8.420%, 01/05/00 2,000 2,190
Banc One
7.250%, 08/01/02 1,500 1,605
BankAmerica
7.125%, 05/12/05 2,000 2,122
Bear Stearns MTN
5.628%, 2/3/96 (A) 2,000 2,000
Chrysler Financial
8.060%, 01/27/97 1,000 1,025
Deere
8.250%, 06/01/96 2,000 2,017
Exxon Capital
7.875%, 08/15/97 2,000 2,074
Ford Motor Credit
7.750%, 10/01/99 2,000 2,135
Seagram
6.500%, 04/01/03 1,000 1,024
---------
TOTAL CORPORATE BONDS
(Cost $15,459,134) 16,192
---------
COMMON STOCKS -- 55.6%
AGRICULTURE -- 1.3%
Dole Food 50,000 1,863
---------
AIR TRANSPORTATION -- 1.0%
Delta Air Lines 21,000 1,436
---------
AIRCRAFT -- 1.0%
Lockheed Martin 20,000 1,507
---------
AUTOMOTIVE -- 1.2%
Ford Motor 25,000 741
General Motors 20,000 1,052
---------
1,793
---------
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------
BANKS -- 1.5%
BankAmerica 22,000 $ 1,482
NationsBank 11,000 769
---------
2,251
---------
BEAUTY PRODUCTS -- 1.0%
Colgate-Palmolive 21,000 1,554
---------
CHEMICALS -- 1.7%
B.F. Goodrich 22,050 1,623
Monsanto 7,500 977
---------
2,600
---------
COMMUNICATIONS
EQUIPMENT -- 1.0%
DSC Communications* 51,000 1,485
---------
COMPUTERS & SERVICES -- 1.4%
Cisco Systems* 26,000 2,164
---------
CONCRETE & MINERAL
PRODUCTS -- 1.1%
Armstrong World Industries 27,500 1,616
---------
DRUGS -- 4.4%
Bristol-Myers Squibb 20,000 1,770
Forest Laboratories* 37,500 2,025
Merck 25,000 1,756
Warner Lambert 10,000 938
---------
6,489
---------
ELECTRICAL UTILITIES -- 1.9%
FPL Group 26,000 1,206
Texas Utilities 40,000 1,635
---------
2,841
---------
ENTERTAINMENT -- 0.9%
Walt Disney 20,000 1,285
---------
FINANCIAL SERVICES -- 2.1%
American Express 38,000 1,748
Federal National Mortgage
Association 40,000 1,380
---------
3,128
---------
- --------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------
FOOD, BEVERAGE &
TOBACCO -- 1.5%
PepsiCo 25,000 $ 1,491
Sara Lee 20,000 675
---------
2,166
---------
GAS/NATURAL GAS -- 0.9%
Coastal 35,000 1,326
---------
INSURANCE -- 3.4%
Chubb 15,000 1,556
General Re 10,500 1,606
United Healthcare 30,500 1,918
---------
5,080
---------
MACHINERY -- 7.3%
Case 47,000 2,227
Deere 61,000 2,287
General Electric 35,000 2,686
Harnischfeger Industries 30,000 1,016
Tyco Labs 74,000 2,618
---------
10,834
---------
MISCELLANEOUS BUSINESS
SERVICES -- 1.0%
Microsoft* 16,000 1,480
---------
PAPER & PAPER PRODUCTS -- 0.9%
International Paper* 32,000 1,308
---------
PETROLEUM & FUEL
PRODUCTS -- 0.2%
Schlumberger 5,000 351
---------
PETROLEUM REFINING -- 5.5%
Amoco 20,000 1,407
Chevron 25,000 1,297
Exxon 24,000 1,926
Mobil 20,000 2,215
Royal Dutch Petroleum 10,000 1,390
---------
8,235
---------
REAL ESTATE -- 0.2%
Castle & Cooke* 16,665 233
---------
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
JANUARY 31, 1996
Statement of Net Assets
- --------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------
RETAIL -- 2.1%
Albertson's 46,000 $ 1,570
Home Depot 34,000 1,564
---------
3,134
---------
SEMI-CONDUCTOR
INSTRUMENTS -- 4.6%
Altera* 26,000 1,713
Applied Materials* 47,000 1,739
Intel 32,000 1,767
Xilinx* 43,000 1,661
---------
6,880
---------
STEEL & STEEL WORKS -- 0.8%
Aluminum Company of America 22,000 1,221
---------
TELEPHONES &
TELECOMMUNICATION -- 5.1%
A T & T 29,500 1,973
Bell Atlantic 18,000 1,240
BellSouth 24,000 1,029
MCI Communications 40,000 1,145
Qualcomm* 50,000 2,237
---------
7,624
---------
TRUCKING -- 0.6%
TNT Freightways 50,000 925
---------
TOTAL COMMON STOCKS
(Cost $67,751,342) 82,809
---------
REAL ESTATE INVESTMENT TRUST -- 0.5%
Security Capital Industrial
Trust 38,300 685
---------
TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $588,863) 685
---------
- --------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------
CASH EQUIVALENTS -- 5.8%
SEI Daily Income Trust Money
Market Portfolio $3,873 $ 3,873
SEI Daily Income Trust Prime
Obligation Portfolio 4,877 4,877
---------
TOTAL CASH EQUIVALENTS
(Cost $8,750,017) 8,750
---------
TOTAL INVESTMENTS -- 100.4%
(Cost $130,730,061) 149,605
---------
OTHER ASSETS, LESS LIABILITIES-- (0.4%) (584)
---------
NET ASSETS:
Portfolio shares of Institutional Class
(unlimited authorization -- no par
value) based on 12,502,669 outstanding
shares of beneficial interest 126,747
Portfolio shares of Retail Class A
(unlimited authorization -- no par value)
based on 141,258 outstanding shares
of beneficial interest 1,613
Accumulated Net Realized Gain on Investments 1,422
Net Unrealized Appreciation of Investments 18,875
Net Undistributed Investment Income 364
---------
TOTAL NET ASSETS-- 100.0% $149,021
=========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $11.79
=========
NET ASSET VALUE AND
REDEMPTION PRICE PER SHARE --
RETAIL CLASS A $11.78
=========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A (11.78 / 95.5%) $12.34
=========
- -----------------------------------------------------
* NON-INCOME PRODUCING SECURITY
MTN - MEDIUM TERM NOTE
(A) FLOATING RATE SECURITY -- THE RATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE RATE ON EFFECT AS OF JANUARY 31, 1996. THE DATE SHOWN IS THE NEXT
RESET DATE.
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
JANUARY 31, 1996 THE ACHIEVEMENT FUNDS TRUST
Statement of Net Assets
- -------------------------------------------------------------------------------
INTERMEDIATE TERM BOND FUND
- -------------------------------------------------------------------------------
[Pie Chart Graph Omitted]
Pie Chart depicting the asset allocation as of January 31, 1996 for the
Achievement Intermediate Term Bond Fund. The breakdown is as follows.
Corporate Securities: 36.0%
U.S. Government Securities: 61.2%
Cash Equivalents: 2.8%
- --------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------
CORPORATE BONDS -- 36.0%
American General Finance
7.250%, 04/15/00 $ 1,000 $ 1,053
American Home Products
7.700%, 02/15/00 1,000 1,071
Associates Corporation of
North America MTN
6.810%, 08/03/01 1,000 1,046
7.540%, 04/14/04 1,000 1,089
AT&T
6.750%, 04/01/04 1,000 1,049
Bear Stearns MTN
7.740%, 02/06/97 1,000 1,023
Bell Atlantic Financial
6.625%, 11/30/97 1,000 1,022
Chemical Bank
8.125%, 06/15/02 1,000 1,115
Chrysler Financial
8.060%, 01/27/97 1,000 1,025
Citicorp
7.125%, 06/01/03 1,000 1,050
Commercial Credit
6.875%, 05/01/02 1,000 1,050
CSR America
6.875%, 07/21/05 2,000 2,089
- -------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------
CSX Transportation
7.540%, 03/15/03 $ 1,000 $ 1,087
Dow Capital BV YB
7.125%, 01/15/03 1,000 1,046
First Union
7.050%, 08/01/05 1,000 1,054
Ford Motor Credit
8.000%, 06/15/02 1,000 1,106
7.750%, 03/15/05 1,000 1,104
General Electric
7.875%, 05/01/96 1,500 1,509
General Electric Capital MTN
6.840%, 04/26/98 1,000 1,030
GMAC MTN
7.250%, 05/15/03 1,000 1,059
Grand Metro
7.125%, 09/15/04 1,000 1,064
Hanson Overseas YB
7.375%, 01/15/03 1,000 1,070
Household Finance
7.650%, 05/15/07 1,000 1,105
International Lease
7.000%, 06/01/98 1,000 1,034
John Deere Capital
7.140%, 09/15/98 1,000 1,042
JP Morgan
7.250%, 01/15/02 1,000 1,072
J.C. Penney MTN
7.050%, 05/23/05 1,000 1,061
MCI Communications
7.125%, 01/20/00 1,000 1,050
NationsBank
7.625%, 04/15/05 1,000 1,086
Norwest
7.700%, 11/15/97 1,000 1,042
Pacific Bell
7.000%, 07/15/04 1,000 1,064
Philip Morris
7.500%, 01/15/02 1,000 1,064
Rite Aid
7.625%, 04/15/05 1,000 1,086
Ryder Systems
7.340%, 11/01/00 1,040 1,105
Sara Lee MTN
7.400%, 03/22/02 1,000 1,079
Society National Bank
7.250%, 06/01/05 1,000 1,064
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
JANUARY 31, 1996
Statement of Net Assets
CORPORATE BONDS (CONTINUED)
Union Electric
6.750%, 10/15/99 $ 1,000 $ 1,037
Waste Management
7.700%, 10/01/02 1,000 1,097
---------
TOTAL CORPORATE BONDS
(Cost $40,409,002) 41,899
---------
U.S. TREASURY OBLIGATIONS -- 54.8%
United States Treasury Bond
7.625%, 02/15/07 1,000 1,101
United States Treasury Notes
6.500%, 05/15/97 2,000 2,039
6.500%, 08/15/97 2,000 2,046
7.375%, 11/15/97 1,000 1,041
7.250%, 02/15/98 4,000 4,174
7.125%, 10/15/98 4,000 4,208
6.500%, 04/30/99 2,500 2,603
6.750%, 06/30/99 3,000 3,150
7.125%, 09/30/99 4,000 4,259
7.750%, 01/31/00 1,500 1,637
7.125%, 02/29/00 4,000 4,278
6.750%, 04/30/00 3,000 3,172
6.250%, 08/31/00 8,000 8,320
6.125%, 09/30/00 1,000 1,035
7.750%, 02/15/01 2,500 2,772
7.875%, 08/15/01 1,500 1,682
7.500%, 11/15/01 1,000 1,107
6.250%, 02/15/03 5,000 5,228
7.250%, 08/15/04 5,000 5,561
7.500%, 02/15/05 1,000 1,133
6.500%, 08/15/05 3,000 3,193
---------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $61,626,665) 63,739
---------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 6.3%
Federal Home Loan Bank
7.190%, 04/27/01 1,000 1,073
7.390%, 08/22/01 1,000 1,086
Federal Home Loan Mortgage
Corporation Callable
9/03/96 @ 100
7.310%, 09/03/99 1,000 1,009
- --------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------
Federal National Mortgage Association
7.090%, 10/14/97 $1,000 $ 1,031
7.050%, 12/10/98 1,000 1,048
6.850%, 04/05/04 1,000 1,066
7.520%, 08/24/05 1,000 1,025
---------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $7,211,822) 7,338
---------
CASH EQUIVALENTS -- 2.8%
SEI Daily Income Trust Money
Market Portfolio 56 56
SEI Daily Income Trust Prime
Obligation Portfolio 3,178 3,178
---------
TOTAL CASH EQUIVALENTS
(Cost $3,234,183) 3,234
---------
TOTAL INVESTMENTS -- 99.9%
(Cost $112,481,672) 116,210
---------
OTHER ASSETS, LESS LIABILITIES-- 0.1% 60
---------
NET ASSETS:
Portfolio shares of Institutional Class
(unlimited authorization -- no par
value) based on 10,685,026 outstanding
shares of beneficial interest 113,213
Portfolio shares of Retail Class A
(unlimited authorization -- no par
value) based on 88,972 outstanding
shares of beneficial interest 938
Accumulated Net Realized Loss on Investments (1,609)
Net Unrealized Appreciation of Investments 3,728
---------
TOTAL NET ASSETS-- 100.0% $116,270
=========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $10.79
=========
NET ASSET VALUE AND
REDEMPTION PRICE PER SHARE --
RETAIL CLASS A $10.82
=========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A (10.82 / 96.5%) $11.21
=========
- ------------------------------------------------------
MTN - MEDIUM TERM NOTE
YB - YANKEE BOND
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- -------------------------------------------------------------------------------
SHORT TERM BOND FUND
- -------------------------------------------------------------------------------
[Pie Chart Graph Omitted]
Pie Chart depicting the asset allocation as of January 31, 1996 for the
Achievement Short Term Bond Fund. The breakdown is as follows.
Corporate Securities: 61.3%
U.S. Government Securities: 37.0%
Cash Equivalents: 1.7%
- ----------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ----------------------------------------------------------
CORPORATE BONDS -- 60.6%
American General Finance MTN
7.370%, 03/14/97 $ 1,000 $ 1,022
American General Finance
7.150%, 05/15/97 1,000 1,022
7.000%, 10/01/97 1,000 1,026
AT&T Capital
7.650%, 01/31/97 1,000 1,023
Barnett Bank MTN
6.250%, 07/28/98 1,000 1,018
Bear Stearns MTN
7.740%, 02/06/97 1,000 1,023
Bell Atlantic Financial Note
6.625%, 11/30/97 2,000 2,044
Carolina Power & Light MTN
7.750%, 01/24/97 1,000 1,024
Caterpillar Financial Services
MTN
5.410%, 02/01/96 (A) 1,000 1,000
Chrysler Financial
8.060%, 01/27/97 1,000 1,025
7.380%, 03/17/97 1,000 1,020
CIT Group Holdings MTN
7.625%, 12/05/96 1,000 1,017
- ---------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ---------------------------------------------------------
Comerica Bank
6.750%, 05/12/98 $ 1,500 $ 1,547
Delmarva Power & Light
6.375%, 09/01/97 1,000 1,006
Dow Capital
8.250%, 02/15/96 1,000 1,001
Ford Motor Credit
7.375%, 01/15/97 1,000 1,020
8.625%, 04/15/96 1,000 1,006
GE Credit
7.840%, 01/21/97 1,500 1,537
Household Finance MTN
6.760%, 04/25/97 1,000 1,017
Houston Power & Light
7.625%, 03/01/97 1,000 1,025
Ingersoll Rand MTN
6.450%, 08/28/98 1,000 1,026
IBM
6.375%, 11/01/97 2,000 2,033
International Lease Finance
6.500%, 07/15/97 1,000 1,016
International Lease MTN
7.000%, 12/02/96 1,000 1,012
7.250%, 09/01/97 1,000 1,028
John Deere Capital
7.200%, 05/15/97 1,000 1,023
MBNA American Bank N.A.
6.650%, 06/17/97 1,000 1,016
Minnesota Power & Light
7.375%, 03/01/97 1,000 1,021
NationsBank
6.625%, 01/15/98 2,000 2,047
Old Kent Bank
7.100%, 03/07/97 1,000 1,021
Pacific Northwest Bell
7.500%, 12/01/96 1,000 1,019
PepsiCo
6.875%, 05/15/97 1,000 1,020
Philip Morris
8.750%, 12/01/96 1,000 1,028
Portland General Electric MTN
6.750%, 09/15/97 1,000 1,021
Society Bank (Cleveland)
7.125%, 04/15/97 1,000 1,022
Toyota Motor Credit
6.875%, 10/15/96 2,000 2,019
US Bancorp MTN
7.380%, 03/03/97 1,000 1,023
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
JANUARY 31, 1996
Statement of Net Assets
- ---------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ---------------------------------------------------------
CORPORATE BONDS (CONTINUED)
Waste Management
6.375%, 07/01/97 $ 1,000 $ 1,015
WMX Technologies
7.125%, 03/22/97 2,000 2,040
---------
TOTAL CORPORATE BONDS
(Cost $45,219,414) 45,873
---------
U.S. TREASURY OBLIGATIONS -- 32.6%
U.S. Treasury Notes
7.750%, 03/31/96 1,000 1,004
7.250%, 11/30/96 2,000 2,035
7.500%, 12/31/96 2,000 2,046
7.500%, 01/31/97 2,000 2,049
6.875%, 02/28/97 3,000 3,060
6.875%, 03/31/97 3,000 3,065
6.500%, 08/15/97 2,000 2,046
6.000%, 11/30/97 2,000 2,036
7.250%, 02/15/98 2,000 2,087
7.125%, 10/15/98 2,000 2,104
6.375%, 01/15/99 3,000 3,108
---------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $24,271,827) 24,640
---------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 4.0%
Federal Home Loan Bank
6.710%, 04/21/97 1,000 1,019
Student Loan Marketing Association
5.610%, 08/22/96 2,000 2,003
---------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $3,014,500) 3,022
---------
- ----------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ----------------------------------------------------------
CASH EQUIVALENTS -- 1.6%
SEI Daily Income Trust
Money Market Portfolio $ 19 $ 19
SEI Daily Income Trust
Prime Obligation Portfolio 1,229 1,229
---------
TOTAL CASH EQUIVALENTS
(Cost $1,247,999) 1,248
---------
TOTAL INVESTMENTS -- 98.8%
(Cost $73,753,740) 74,783
---------
OTHER ASSETS, LESS LIABILITIES-- 1.2% 888
---------
NET ASSETS:
Portfolio shares of Institutional Class
(unlimited authorization -- no par
value) based on 7,427,620 outstanding
shares of beneficial interest 76,638
Portfolio shares of Retail Class A
(unlimited authorization -- no par
value) based on 3,827 outstanding
shares of beneficial interest 39
Accumulated Net Realized Loss on Investments (2,035)
Net Unrealized Appreciation of Investments 1,029
---------
TOTAL NET ASSETS-- 100.0% $75,671
=========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $10.18
=========
NET ASSET VALUE AND
REDEMPTION PRICE PER SHARE --
RETAIL CLASS A $10.18
=========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A (10.18 / 98.5%) $10.34
=========
- -----------------------------------------------------
MTN - MEDIUM TERM NOTE
(A) FLOATING RATE SECURITY -- THE RATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE RATE ON EFFECT AS OF JANUARY 31, 1996. THE DATE SHOWN IS THE NEXT
RESET DATE.
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- -------------------------------------------------------------------------------
SHORT TERM MUNICIPAL
BOND FUND
- -------------------------------------------------------------------------------
[Pie Chart Graph Omitted]
Pie Chart depicting the asset allocation as of January 31, 1996 for the
Achievement Short Term Municipal Bond Fund. The breakdown is as follows.
General Obligation: 56.7%
Revenue Bonds: 33.8%
Cash Equivalents: 9.5%
- ----------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ----------------------------------------------------------
MUNICIPAL BONDS -- 91.3%
ARIZONA -- 3.3%
Arizona State, Transportation
Board RB AMBAC
5.000%, 07/01/99 $1,000 $ 1,033
---------
COLORADO -- 1.6%
Gunnison Watershed,
GO MBIA
5.000%, 12/01/99 500 517
---------
CONNECTICUT -- 3.2%
Connecticut State, Special Tax
Assessment RB AMBAC
4.250%, 05/15/98 1,000 1,006
---------
DELAWARE -- 3.3%
Delaware State, Public
Improvement GO
5.600%, 03/01/98 1,000 1,039
---------
FLORIDA -- 3.3%
Jacksonville, Electric Authority RB
5.000%, 10/01/98 1,000 1,029
---------
- ----------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ----------------------------------------------------------
HAWAII -- 3.2%
Honolulu, City & County
GO MBIA
4.250%, 11/01/99 $1,000 $ 1,011
---------
ILLINOIS -- 6.5%
Dupage, Water Commission, Water
Utility Improvements RB
5.900%, 05/01/96 1,000 1,005
Glenview, Miscellaneous
Improvements, Callable
09/01/98 @ 100 GO
5.500%, 12/01/98 1,000 1,044
---------
2,049
---------
INDIANA -- 3.4%
Indianapolis, Telecommunications
Improvements RB
6.400%, 02/01/99 1,000 1,074
---------
KENTUCKY -- 3.2%
Kentucky State Property &
Buildings, Refunding RB
4.100%, 09/01/98 1,000 1,001
---------
MINNESOTA -- 3.2%
Saint Paul, Capital Improvements,
Series B GO
4.750%, 03/01/99 1,000 1,023
---------
NEBRASKA -- 3.2%
Douglass County, School District
#017, GO
4.300%, 09/15/98 1,000 1,014
---------
NEVADA -- 1.6%
Washoe County, Airport Authority
RB MBIA
5.150%, 07/01/99 500 517
---------
OHIO -- 6.5%
Cincinnati, Water Utility
Improvements GO
5.150%, 12/01/98 1,000 1,039
Ohio State, Building Authority RB
4.100%, 04/01/99 1,000 1,002
---------
2,041
---------
OKLAHOMA -- 3.3%
Grand River, Grand River Dam
Authority RB
5.000%, 06/01/99 1,000 1,028
---------
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
JANUARY 31, 1996
Statement of Net Assets
- ----------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ----------------------------------------------------------
OREGON -- 4.8%
Jackson County, Oregon School
District #549C GO
4.500%, 06/01/99 $1,000 $ 1,020
Portland, Oregon Community
College GO
4.500%, 01/15/99 500 506
--------
1,526
--------
TENNESSEE -- 3.3%
Chattanooga, Public Improvements GO
4.900%, 02/01/99 1,000 1,025
--------
TEXAS -- 3.2%
Fort Worth, Refunding GO
4.900%, 03/01/99 1,000 1,026
--------
UTAH -- 3.3%
Utah State, Public Improvements GO
5.000%, 07/01/98 1,000 1,031
--------
VIRGINIA -- 4.9%
Fairfax County, Series A,
Refunding GO STAID
4.600%, 06/01/98 1,000 1,021
Portsmouth, Virginia Refunding GO
5.500%, 11/01/98 500 523
--------
1,544
--------
WASHINGTON -- 13.2%
King County, School District #414,
Series B Refunding GO
5.000%, 12/01/97 1,000 1,025
Seattle, Municipal Light &
Power RB
6.000%, 07/01/98 1,000 1,045
Tacoma, Washington GO
5.300%, 07/01/99 1,000 1,040
Thurston County
GO FGIC
5.250%, 12/01/98 1,000 1,039
--------
4,149
--------
WISCONSIN -- 6.6%
Milwaukee, Sewer District,
Series A, GO
6.500%, 10/01/98 1,000 1,066
Wisconsin State, Refunding GO
4.400%, 05/01/98 1,000 1,015
--------
2,081
--------
- ---------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ---------------------------------------------------------
WYOMING -- 3.2%
Platte County, Polution
Control RB
4.000%, 01/01/98 $1,000 $ 1,001
--------
TOTAL MUNICIPAL BONDS
(Cost $28,179,795) 28,765
--------
CASH EQUIVALENTS -- 9.6%
SEI Institutional Tax Free
Portfolio 1,582 1,582
SEI Tax Free Portfolio 1,448 1,448
--------
TOTAL CASH EQUIVALENTS
(Cost $3,029,650) 3,030
--------
TOTAL INVESTMENTS -- 100.9%
(Cost $31,209,445) 31,795
--------
OTHER ASSETS, LESS LIABILITIES-- (0.9%) (279)
--------
NET ASSETS:
Portfolio shares of Institutional Class
(unlimited authorization -- no par
value) based on 3,058,842 outstanding
shares of beneficial interest 30,602
Portfolio shares of Retail Class A
(unlimited authorization -- no par
value) based on 20,692 outstanding
shares of beneficial interest 212
Accumulated Net Realized Gain on Investments 94
Net Unrealized Appreciation of Investments 586
Net Undistributed Investment Income 22
--------
TOTAL NET ASSETS-- 100.0% $31,516
========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $10.23
========
NET ASSET VALUE AND
REDEMPTION PRICE PER SHARE --
RETAIL CLASS A $10.25
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A (10.25 / 98.5%) $10.41
========
- -------------------------------------------------------------------------------
AMBAC - AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC- FEDERAL GUARANTY INSURANCE CORPORATION
GO - GENERAL OBLIGATION
MBIA - MUNICIPAL BOND INSURANCE ASSOCIATION
RB - REVENUE BOND
STAID - STATE AID WITHHOLDING
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- -------------------------------------------------------------------------------
IDAHO MUNICIPAL BOND FUND
- -------------------------------------------------------------------------------
[Pie Chart Graph Omitted]
Pie Chart depicting the asset allocation as of January 31, 1996 for the
Achievement Idaho Municipal Bond Fund. The breakdown is as follows.
General Obligations: 79.5%
Revenue Bonds: 17.1%
Cash Equivalents: 3.4%
- ----------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS -- 97.8%
IDAHO -- 97.0%
Ada County, GO
4.750%, 02/01/99 $200 $ 206
Ada & Canyon County, Joint
School District #2,
Meridian, GO
5.500%, 07/30/14 500 510
American Falls, Reservoir
Refunding, Series A, RB
7.250%, 05/01/04 150 172
Bannock County, GO
5.000%, 09/01/99 200 208
5.100%, 09/01/01 200 209
Bannock & Caribou Counties,
Joint School District #21,
Marsh VY, GO
5.250%, 09/01/01 105 112
5.300%, 09/01/04 100 106
5.250%, 09/01/00 100 106
Bingham County, School
District #055, Blackfoot,
GO MBIA
5.650%, 08/01/15 350 368
Bingham & Bonneville Counties,
School District #60, Shelly,
Prerefunded GO AMBAC
6.450%, 09/01/97 (A) 300 313
- -----------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- -----------------------------------------------------------
Blaine County, GO CGIC
4.400%, 08/01/07 $150 $ 147
Boise City, Independent School
District #1, GO AMBAC
5.400%, 07/30/14 500 517
Boise City, Independent School
District, GO AMBAC
5.500%, 07/30/11 500 525
Boise State, Student Union &
Housing Systems, RB MBIA
5.000%, 04/01/00 100 104
4.500%, 04/01/03 100 105
4.750%, 04/01/05 200 205
Boise-Kuna, Lucky Peak
Hydroelectric Project, RB
6.375%, 07/01/02 200 228
Bonneville County, School
District #91, Idaho Falls, GO
5.200%, 08/01/05 500 521
5.450%, 08/01/08 200 208
5.500%, 08/01/09 300 304
Bonneville & Bingham Counties,
School District #93, Refunding
Series A, GO FGIC
5.750%, 07/30/07 500 554
5.500%, 07/30/10 400 428
Canyon County, School District
#131, Nampa, GO MBIA
5.500%, 07/30/12 500 521
5.500%, 07/30/11 500 522
8.500%, 07/30/02 500 622
Canyon County, School District
#132, GO
5.400%, 07/30/12 CGIC 200 209
4.000%, 07/30/01 100 100
5.450%, 07/30/15 CGIC 900 936
4.200%, 07/30/03 130 130
4.100%, 07/30/02 100 100
Canyon County, School District
#134, Middleton, GO FGIC
4.500%, 07/31/11 500 486
Canyon County, School District
#139, GO
5.900%, 08/01/00 400 433
5.200%, 08/01/11 200 202
5.200%, 08/01/12 110 111
5.000%, 08/01/13 425 421
Caribou & Bonneville Counties,
School District #150, GO
5.500%, 09/01/06 395 417
27
<PAGE>
JANUARY 31, 1996
Statement of Net Assets
- ---------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ---------------------------------------------------------
IDAHO (CONTINUED)
City of Sun Valley, Series
1995, GO
5.050%, 08/01/08 $195 $ 200
Elmore County, School District
#193, Mountain Home, GO AMBAC
5.000%, 07/31/10 400 398
4.500%, 07/31/12 500 470
Fremont & Madison Counties,
School District #215,
St. Anthony, GO CGIC
5.600%, 08/01/14 125 131
5.600%, 08/01/15 765 799
Gem & Boise Counties, Joint
School District #221, Emmit,
GO AMBAC
4.700%, 08/01/01 505 523
Gooding County, School District
#232, Wendell, GO AMBAC
5.000%, 08/01/11 100 101
Gooding & Lincoln Counties,
Joint School District #231,
GO CGIC
6.300%, 02/01/15 535 595
Idaho Falls, Refunding Electric,
Zero Coupon Bond, GO FGIC
0.000%, 04/01/07 500 294
0.000%, 04/01/11 500 240
0.000%, 04/01/12 500 219
0.000%, 04/01/13 500 206
0.000%, 04/01/14 180 68
Idaho Health Facility Authority,
St. Alphonsus Regional Medical
Center, RB
6.100%, 12/01/07 100 109
Idaho State Building Authority,
Refunding, Series C, RB MBIA
5.600%, 09/01/05 100 109
Idaho State Building Authority,
Series D, RB
5.800%, 09/01/05 100 110
Idaho State Building Authority,
Series E, RB
5.200%, 09/01/99 200 209
5.250%, 09/01/00 100 106
Idaho State Health Facility
Authority, St Josephs Regional
Medical Center , RB MBIA
5.000%, 07/01/07 500 524
Idaho State Health Facility
Authority, Magic Valley
Regional Medical
Center, RB AMBAC
5.000%, 12/01/02 500 528
5.200%, 12/01/04 500 535
- ---------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ---------------------------------------------------------
Idaho State University, Student
Facility Fee, RB
4.750%, 04/01/02 $ 130 $ 135
4.900%, 04/01/03 140 146
5.000%, 04/01/99 115 119
Jefferson County, School
District #253, GO MBIA
5.500%, 08/01/15 240 253
Jefferson & Madison Counties,
School District #251, Rigby,
GO MBIA
5.600%, 07/30/00 300 322
5.200%, 07/30/97 300 307
Jerome County, School District
#262, GO AMBAC
5.150%, 08/01/04 200 208
5.000%, 08/01/01 195 204
8.000%, 08/01/00 100 117
Ketchum, Sewer Revenue, RB MBIA
5.400%, 07/01/98 200 208
Kootenai County, Consolidated
Free Library District, GO CGIC
5.000%, 08/01/06 160 169
Kootenai County, School District
#272, GO
4.700%, 08/01/06 400 404
Latah & Clearwater Counties,
School District #286, GO AMBAC
5.200%, 02/01/04 100 105
5.500%, 02/01/07 200 212
5.600%, 02/01/08 200 211
Madison County, GO CGIC
5.400%, 08/01/15 420 428
Madison County, School District
#321, Rexburg, GO AMBAC
5.300%, 02/01/03 200 211
Meridian, Idaho GO FSA
5.000%, 08/01/15 290 287
Minidoka & Jerome Counties, School
District #331, GO MBIA
5.000%, 02/01/01 175 183
Oneida County, School District
#351, GO MBIA
5.000%, 07/31/15 375 371
Owyhee & Elmore Counties,
School District #365, Grand
View, GO AMBAC
5.250%, 08/01/99 100 105
Payette County, School District
#372, GO ASSETG
6.750%, 07/31/09 100 117
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- ----------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ----------------------------------------------------------
Payette & Washington Counties,
Joint School District #371,
GO AMBAC
4.900%, 10/01/03 $500 $ 521
Post Falls, Sewer Revenue,
RB AMBAC
4.900%, 08/01/05 200 208
Southern Idaho Regional Solid
Waste Project, COP CLDF
4.100%, 11/01/98 200 203
5.450%, 11/01/13 500 518
Twin Falls County, Class A,
School District #413, GO AMBAC
5.250%, 07/30/09 200 206
5.250%, 07/30/14 420 428
5.250%, 07/30/13 400 410
Twin Falls County, School District
#415, GO ASSETG
5.500%, 08/01/15 195 203
Twin Falls County, Solid Waste
Disposal Project, GO
4.400%, 09/01/00 305 311
4.400%, 09/01/02 100 101
4.500%, 09/01/98 400 410
Twin Falls & Cassia County, Joint
School District #418, GO MBIA
5.450%, 08/01/15 145 150
University of Idaho, Refunding
Student Building Fee, RB
5.350%, 04/01/10 250 262
University of Idaho, Refunding &
Improvements Facility Fee, RB
5.100%, 04/01/07 200 208
University of Idaho, Series B, RB
5.650%, 07/01/99 100 106
5.800%, 07/01/00 100 108
5.900%, 07/01/01 200 219
Washington County, School District
#431, GO AMBAC
5.500%, 08/01/06 200 215
5.300%, 08/01/04 200 212
5.000%, 08/01/02 100 105
8.000%, 08/01/99 210 240
5.400%, 08/01/05 100 107
--------
28,113
--------
PUERTO RICO -- 0.8%
University of Puerto Rico, Zero
Coupon Bond, RB MBIA
0.000%, 06/01/11 530 241
--------
TOTAL MUNICIPAL BONDS
(Cost $26,952,566) 28,354
--------
- ----------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ----------------------------------------------------------
CASH EQUIVALENTS -- 3.5%
SEI Institutional Tax Free
Portfolio $1,003 $ 1,003
--------
TOTAL CASH EQUIVALENTS
(Cost $1,002,812) 1,003
--------
TOTAL INVESTMENTS -- 101.3%
(Cost $27,955,378) 29,357
--------
OTHER ASSETS, LESS LIABILITIES-- (1.3)% (375)
--------
Net Assets:
Portfolio shares of Institutional Class
(unlimited authorization -- no par
value) based on 2,395,882 outstanding
shares of beneficial interest 24,444
Portfolio shares of Retail Class A
(unlimited authorization -- no par
value) based on 287,194 outstanding
shares of beneficial interest 3,027
Accumulated Net Realized Gain on Investments 103
Net Unrealized Appreciation of Investments 1,402
Net Undistributed Investment Income 6
--------
TOTAL NET ASSETS-- 100.0% $28,982
========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $10.80
========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE --
RETAIL CLASS A $10.83
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A (10.83 / 96%) $11.28
========
- -------------------------------------------------------------------------------
(A) PREREFUNDED SECURITY - THE DATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE PREREFUNDED DATE.
AMBAC - AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
ASSETG - ASSET GUARANTY
CGIC - CAPITAL GUARANTEE INSURANCE CORPORATION
CLDF - CREDIT LECALE DE FRANCE
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.
29
<PAGE>
[This Page Left Intentionally Blank]
30
<PAGE>
FOR THE YEAR ENDED JANUARY 31, 1996 THE ACHIEVEMENT FUNDS TRUST
Statements of Operations (000)
- --------------------------------------------------------------------------------
<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 $ 2,647 $ 1,591 $ -- $ -- $ -- $ --
Interest Income 238 4,158 5,978 5,257 1,457 1,439
-------- -------- -------- -------- -------- --------
Total Income 2,885 5,749 5,978 5,257 1,457 1,439
-------- -------- -------- -------- -------- --------
EXPENSES:
Administrative Fees 248 263 173 153 100 100
Waiver of Administrative Fees -- -- -- -- (37) (45)
Investment Advisory Fees 917 972 520 459 189 164
Waiver of Investment
Advisory Fees (297) (316) (233) (186) (135) (118)
Custodian/Transfer Agent Fees 55 55 51 49 44 44
Professional Fees 57 58 42 31 12 11
Pricing Fees 4 4 3 3 2 1
Registration & Filing Fees 80 92 58 35 50 37
Printing Fees 30 30 22 15 6 6
Trustee Fees 8 8 5 5 2 2
Distribution Fees (1) 1 2 1 -- -- 4
Amortization of Deferred
Organizational Costs 9 11 6 7 3 2
Miscellaneous Fees 5 5 3 3 1 1
-------- -------- -------- -------- -------- --------
Total Expenses 1,117 1,184 651 574 237 209
-------- -------- -------- -------- -------- --------
Net Income 1,768 4,565 5,327 4,683 1,220 1,230
-------- -------- -------- -------- -------- --------
Net Realized Gain (Loss) on
Investments 10,078 6,570 (1,369) (2,035) 242 401
Net Change in Unrealized
Appreciation of Investments 22,581 17,088 5,933 1,287 610 1,616
-------- -------- -------- -------- -------- --------
Net Realized and Unrealized Gain
(Loss) on Investments 32,659 23,658 4,564 (748) 852 2,017
-------- -------- -------- -------- -------- --------
Increase in Net Assets Resulting
from Operations $ 34,427 $ 28,223 $ 9,891 $ 3,935 $ 2,072 $ 3,247
======== ======== ======== ======== ======== ========
<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.
31
<PAGE>
Statements of Changes in Net Assets (000)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY BALANCED
FUND FUND
====================== ======================
2/1/95 12/28/94(1) 2/1/95 12/28/94(1)
TO TO TO TO
1/31/96 1/31/95 1/31/96 1/31/95
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 1,768 $ 110 $ 4,565 $ 378
Net Realized Gain (Loss) on Investments 10,078 (670) 6,570 (21)
Net Change in Unrealized
Appreciation (Depreciation) of
Investments 22,581 3,111 17,088 1,787
--------- --------- --------- ---------
Increase (Decrease) in Net Assets
Resulting From Operations 34,427 2,551 28,223 2,144
--------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (1,771) -- (4,562) --
Retail Class A (8) -- (17) --
Capital Gains:
Institutional Class (7,843) -- (5,076) --
Retail Class A (77) -- (51) --
--------- --------- --------- ---------
Total Distributions (9,699) -- (9,706) --
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 49,800 96,247 19,813 110,952
Reinvestment of Cash Distributions 2,384 -- 9,629 --
Cost of Shares Redeemed (22,918) (1,746) (13,447) (200)
--------- --------- --------- ---------
Total Institutional Class Transactions 29,266 94,501 15,995 110,752
--------- --------- --------- ---------
Retail Class A:
Proceeds from Shares Issued 1,692 -- 1,612 --
Reinvestment of Cash Distributions 85 -- 66 --
Cost of Shares Redeemed (97) -- (65) --
--------- --------- --------- ---------
Total Retail Class A Transactions 1,680 -- 1,613 --
--------- --------- --------- ---------
Net Increase (Decrease) in Net
Assets from Share Transactions 30,946 94,501 17,608 110,752
--------- --------- --------- ---------
Total Increase (Decrease) in Net Assets 55,674 97,052 36,125 112,896
NET ASSETS:
Beginning of Period 97,052 -- 112,896 --
--------- --------- --------- ---------
End of Period $ 152,726 $ 97,052 $ 149,021 $ 112,896
========= ========= ========= =========
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 4,165 9,654 1,766 11,091
Shares Issued in Lieu of Cash Distributions 196 -- 852 --
Shares Redeemed (1,900) (174) (1,186) (20)
--------- --------- --------- ---------
Total Institutional Class Share Transactions 2,461 9,480 1,432 11,071
--------- --------- --------- ---------
Retail Class A
Shares Issued 141 -- 141 --
Shares Issued in Lieu of Cash Distributions 7 -- 6 --
Shares Redeemed (8) -- (6) --
--------- --------- --------- ---------
Total Retail Class A Share Transactions 140 -- 141 --
--------- --------- --------- ---------
Net Increase (Decrease) in Share Transactions 2,601 9,480 1,573 11,071
========= ========= ========= =========
<FN>
(1) Commenced operations on December 28, 1994.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
32
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE SHORT TERM SHORT TERM IDAHO
TERM BOND FUND BOND FUND MUNICIPAL BOND FUND MUNICIPAL BOND
====================== ====================== ====================== =====================
2/1/95 12/28/94(1) 2/1/95 12/28/94(1) 2/1/95 12/28/94(1) 2/1/95 12/28/94(1)
TO TO TO TO TO TO TO TO
1/31/96 1/31/95 1/31/96 1/31/95 1/31/96 1/31/95 1/31/96 1/31/95
--------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 5,327 $ 351 $ 4,683 $ 284 $ 1,220 $ 118 $ 1,230 $ 105
Net Realized Gain (Loss) on
Investments (1,369) (240) (2,035) -- 242 -- 401 6
Net Change in Unrealized
Appreciation
(Depreciation) of
Investments 5,933 (2,205) 1,287 (258) 610 (24) 1,616 (214)
--------- --------- --------- --------- --------- --------- --------- ---------
Increase (Decrease) in Net
Assets Resulting From
Operations 9,891 (2,094) 3,935 26 2,072 94 3,247 (103)
--------- --------- --------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (5,232) (418) (4,552) (413) (1,204) (111) (1,149) (112)
Retail Class A (28) -- (2) -- (1) -- (68) --
Capital Gains:
Institutional Class -- -- -- -- (147) -- (272) --
Retail Class A -- -- -- -- (1) -- (32) --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Distributions (5,260) (418) (4,554) (413) (1,353) (111) (1,521) (112)
--------- --------- --------- --------- --------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares
Issued 61,480 69,776 45,648 72,674 9,734 34,274 5,838 26,722
Reinvestment of Cash
Distributions 1,297 -- 1,376 -- -- -- 3 --
Cost of Shares Redeemed (17,709) (1,631) (41,153) (1,907) (12,831) (575) (7,506) (613)
--------- --------- --------- --------- --------- --------- --------- ---------
Total Institutional Class
Transactions 45,068 68,145 5,871 70,767 (3,097) 33,699 (1,665) 26,109
--------- --------- --------- --------- --------- --------- --------- ---------
Retail Class A:
Proceeds from Shares
Issued 959 -- 58 -- 220 -- 3,044 --
Reinvestment of Cash
Distributions 27 -- 2 -- 2 -- 94 --
Cost of Shares Redeemed (48) -- (21) -- (10) -- (111) --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Retail Class A
Transactions 938 -- 39 -- 212 -- 3,027 --
--------- --------- --------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in
Net Assets from Share
Transactions 46,006 68,145 5,910 70,767 (2,885) 33,699 1,362 26,109
--------- --------- --------- --------- --------- --------- --------- ---------
Total Increase (Decrease)
in Net Assets 50,637 65,633 5,291 70,380 (2,166) 33,682 3,088 25,894
NET ASSETS:
Beginning of Period 65,633 -- 70,380 -- 33,682 -- 25,894 --
--------- --------- --------- --------- --------- --------- --------- ---------
End of Period $ 116,270 $ 65,633 $ 75,671 $ 70,380 $ 31,516 $ 33,682 $ 28,982 $ 25,894
========= ========= ========= ========= ========= ========= ========= =========
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 5,735 6,670 4,338 7,211 956 3,422 555 2,616
Shares Issued in Lieu
of Cash
Distributions 123 -- 136 -- -- -- -- --
Shares Redeemed (1,680) (163) (4,067) (190) (1,262) (57) (714) (61)
--------- --------- --------- --------- --------- --------- --------- ---------
Total Institutional Class
Share Transactions 4,178 6,507 407 7,021 (306) 3,365 (159) 2,555
--------- --------- --------- --------- --------- --------- --------- ---------
Retail Class A
Shares Issued 91 -- 6 -- 22 -- 289 --
Shares Issued in Lieu
of Cash
Distributions 3 -- -- -- -- -- 8 --
Shares Redeemed (5) -- (2) -- (1) -- (10) --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Retail Class A Share
Transactions 89 -- 4 -- 21 -- 287 --
--------- --------- --------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in
Share Transactions 4,267 6,507 411 7,021 (285) 3,365 128 2,555
========= ========= ========= ========= ========= ========= ========= =========
<FN>
(1) Commenced operations on December 28, 1994.
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.
33
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout the Year or Period
<TABLE>
<CAPTION>
NET
ASSET DIVIDENDS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS, END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS 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 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 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 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 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 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 period ended
January 31, 1996(2)** $10.16 0.56 (0.55) -- 0.65 $10.82 13.49% $ 963
SHORT TERM
BOND FUND
=========
Institutional Class:
For the year ended
January 31, 1996 $10.02 0.67 (0.65) -- 0.14 $10.18 7.80% $75,632
For the period ended
January 31, 1995(1)** $10.00 0.04 (0.06) -- 0.04 $10.02 0.79%* $70,380
Retail Class A--
For the period ended
January 31, 1996(2)** $10.03 0.53 (0.52) -- 0.14 $10.18 7.55% $ 39
</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
TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
NET ASSETS (WAIVERS) NET ASSETS (WAIVERS) RATE
----------- ----------- ---------- ----------- --------
<S> <C> <C> <C> <C> <C>
EQUITY FUND
===========
INSTITUTIONAL CLASS:
For the year ended
January 31, 1996 0.90% 1.14% 1.43% 1.19% 103.85%
For the period ended
January 31, 1995(1)** 0.90% 1.26% 1.22% 0.86% 6.03%
Retail Class A--
For the period ended
January 31, 1996(2)** 1.15% 1.37% 0.99% 0.77% 103.85%
BALANCED FUND
=============
Institutional Class:
For the year ended
January 31, 1996 0.90% 1.14% 3.48% 3.24% 59.74%
For the period ended
January 31, 1995(1)** 0.90% 1.26% 3.61% 3.25% 1.70%
Retail Class A--
For the period ended
January 31, 1996(2)** 1.15% 1.38% 3.06% 2.83% 59.74%
INTERMEDIATE TERM
BOND FUND
=================
Institutional Class:
For the year ended
January 31, 1996 0.75% 1.02% 6.14% 5.87% 85.16%
For the period ended
January 31, 1995(1)** 0.75% 1.13% 5.60% 5.22% 10.57%
Retail Class A--
For the period ended
January 31, 1996(2)** 1.00% 1.26% 5.74% 5.48% 85.16%
SHORT TERM
BOND FUND
=========
Institutional Class:
For the year ended
January 31, 1996 0.75% 0.99% 6.11% 5.87% 83.64%
For the period ended
January 31, 1995(1)** 0.75% 1.13% 4.21% 3.83% 11.95%
Retail Class A--
For the period ended
January 31, 1996(2)** 1.00% 1.23% 5.75% 5.52% 83.64%
</TABLE>
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
<TABLE>
<CAPTION>
NET
ASSET DIVIDENDS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS, END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS 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>
SHORT TERM
MUNICIPAL
BOND FUND
=========
Institutional Class:
For the year ended
January 31, 1996 $10.01 0.43 (0.42) (0.05) 0.26 $10.23 6.71% $31,304
For the period ended
January 31, 1995(1)** $10.00 0.03 (0.03) -- 0.01 $10.01 0.43%* $33,682
Retail Class A--
For the period ended
January 31, 1996(2)** $10.01 0.33 (0.33) (0.05) 0.29 $10.25 6.99% $ 212
IDAHO MUNICIPAL
BOND FUND
===============
Institutional Class:
For the period ended
January 31, 1996 $10.13 0.52 (0.51) (0.12) 0.78 $10.80 12.68% $25,873
For the period ended
January 31, 1995(1)** $10.00 0.04 (0.04) -- 0.13 $10.13 1.74%* $25,894
Retail Class A--
For the period ended
January 31, 1996(2)** $10.21 0.41 (0.40) (0.12) 0.73 $10.83 12.60% $ 3,109
</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
TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
NET ASSETS (WAIVERS) NET ASSETS (WAIVERS) RATE
----------- ----------- ---------- ----------- --------
<S> <C> <C> <C> <C> <C>
SHORT TERM
MUNICIPAL
BOND FUND
=========
Institutional Class:
For the year ended
January 31, 1996 0.75% 1.30% 3.88% 3.33% 114.09%
For the period ended
January 31, 1995(1)** 0.75% 1.26% 3.67% 3.16% 11.80%
Retail Class A--
For the period ended
January 31, 1996(2)** 1.00% 1.54% 3.49% 2.95% 114.09%
IDAHO MUNICIPAL
BOND FUND
===============
Institutional Class:
For the period ended
January 31, 1996 0.75% 1.35% 4.52% 3.92% 58.94%
For the period ended
January 31, 1995(1)** 0.75% 1.38% 4.21% 3.58% 5.66%
Retail Class A--
For the period ended
January 31, 1996(2)** 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.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
JANUARY 31, 1996
NOTES TO FINANCIAL STATEMENTS
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.
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 January 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 -- Investment in equity securities which 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.
36
<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 asset value. 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 asset values 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 are payable 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 year ended January 31, 1996, the Adviser
voluntarily waived a portion of their 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.
37
<PAGE>
JANUARY 31, 1996
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. ADMINISTRATIVE, TRANSFER AGENT AND DISTRIBUTION SERVICES
================================================================================
Pursuant to an administrative agreement dated December 27, 1994, SEI
Financial Management Corporation ("SFM") acts as the Trust's Administrator.
Under the terms of such an agreement, SFM 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 year ended January 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.
38
<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 year ended January 31,
1996, are presented below for the Funds. On January 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 January 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 $ -- $ 11,769 $ 78,803 $ 25,263 $ -- $ --
Other 142,679 78,697 42,953 41,689 34,331 16,984
Sales
U.S. Government Securities -- 5,050 56,710 15,530 -- --
Other 124,640 68,147 13,847 40,071 37,630 15,737
Aggregate gross unrealized gain 27,689 19,928 3,741 1,052 587 1,403
Aggregate gross unrealized loss 1,997 1,053 13 23 1 1
-------- -------- -------- -------- -------- --------
Net unrealized gain $ 25,692 $ 18,875 $ 3,728 $ 1,029 $ 586 $ 1,402
======== ======== ======== ======== ======== ========
</TABLE>
39
<PAGE>
JANUARY 31, 1996
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 January 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 10% 3%
Education Bonds -- 7%
General Obligation 57% 79%
Hospital Bonds -- 7%
Housing Bonds -- --
Public Facility Bonds 6% --
Other Revenue Bonds 6% --
Transportation Bonds 5% --
Utility Bonds 16% 4%
--- ---
100% 100%
=== ===
Many municipalities insure their obligations with insurance underwritten by
insurance companies which 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 January 31, 1996, 19% and 69% of the total value of the Short
Term Municipal Fund and Idaho Municipal 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 January 31, 1996 are as follows:
IDAHO
SHORT TERM MUNICIPAL
INTERMEDIATE TERM SHORT TERM MUNICIPAL BOND BOND
BOND FUND BOND FUND FUND FUND
================= ========== ============== =========
AAA 66% 44% 33% 72%
AA+ -- -- 13% --
AA 2% 1% 24% 5%
AA- 6% 1% 2% --
A+ 10% 19% 13% 3%
A 7% 27% 12% 19%
A- 9% 8% 3% 1%
--- --- --- ---
100% 100% 100% 100%
=== === === ===
40
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
7. OPTIONS CONTRACTS
================================================================================
The Equity Fund and the Balanced Fund may write covered call options. The
following summarizes the transactions in covered call options during the year
ended January 31, 1996.
<TABLE>
<CAPTION>
EQUITY FUND BALANCED FUND
---------------------- ----------------------
WRITTEN OPTION NUMBER NUMBER
TRANSACTIONS OF CONTRACTS PREMIUM OF CONTRACTS PREMIUM
- ------------------------------------- ------------ --------- ------------ ---------
<S> <C> <C> <C> <C>
Options written and outstanding at
beginning of period 492 121,720 450 114,896
CALL OPTIONS WRITTEN DURING PERIOD -- -- -- --
Call options exercised during period (367) (81,471) (325) (74,647)
Call options expired during period -- -- -- --
Call options closed during period (125) (40,249) (125) (40,249)
-------- -------- -------- --------
Options written and outstanding at
end of period -- -- -- --
======== ======== ======== ========
</TABLE>
8. 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 Trust. These
loans are for the respective benefit of and payable from the respective assets
of the Funds from time to time prior to October 10, 1996 in an aggregate
principal amount not to exceed $10,000,000 at any time outstanding to the Trust.
The aggregate amount of all loans outstanding to an individual Fund shall not
exceed 5% of the total net assets of that Fund.
41
<PAGE>
INDEPENDENT AUDITORS REPORT
The Shareholders and Board of Trustees of The Achievement Funds Trust:
We have audited the accompanying statements of net assets of The Achievement
Funds Trust (the "Trust"), including the Equity Fund, the Balanced Fund, the
Intermediate Term Bond Fund, the Short Term Bond Fund, the Short Term Municipal
Bond Fund and the Idaho Municipal Bond Fund as of January 31, 1996, the related
statements of operations for the year then ended, changes in net assets and the
financial highlights for the year then ended and for the period December 28,
1994 (commencement of operations) to January 31, 1995. These financial
statements and the financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at January
31, 1996 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The Achievement
Funds Trust as of January 31, 1996, the results of their operations, the changes
in their net assets, and the financial highlights for the respective stated
periods in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
March 22, 1996
42
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
NOTICE TO SHAREHOLDERS
(UNAUDITED)
For shareholders that do not have a January 31, 1996 tax year end, this
notice is for informational purposes only. For shareholders with a January 31,
1996 tax year-end, please consult your tax advisor as to the pertinence of this
notice.
For the fiscal year ended January 31, 1996, each fund is designating
the following items with regard to distributions paid during the year.
(A) (B) (C)
LONG-TERM ORDINARY (A+B)
CAPITAL GAINS INCOME TOTAL
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
FUND (TAX BASIS) (TAX BASIS) (TAX BASIS)
- ------------------------------- -------------- --------------- ---------------
Equity Fund 47% 53% 100%
Balanced Fund 0% 100% 100%
Intermediate Term Bond Fund 0% 100% 100%
Short Term Bond Fund 0% 100% 100%
Short Term Municipal Bond Fund 0% 100% 100%
Idaho Municipal Bond Fund 20% 80% 100%
(D) (E) (F)
QUALIFYING TAX EXEMPT FOREIGN
FUND DIVIDENDS(1) INTEREST TAX CREDIT
- -------------------------------- -------------- --------------- ---------------
Equity Fund 42% 0% 0%
Balanced Fund 14% 0% 0%
Intermediate Term Bond Fund 0% 0% 0%
Short Term Bond Fund 0% 0% 0%
Short Term Municipal Bond Fund 0% 88% 0%
Idaho Municipal Bond Fund 0% 100% 0%
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
* Items (A) and (B) are based on a percentage of
each fund's total distributions.
** Items (D) and (E) are based on a percentage of ordinary income distributions
of each fund.
<PAGE>
- -------------------------------------------------
THE ACHIEVEMENT FUNDS
BOARD OF TRUSTEES
FREDERICK A. MORETON, JR.
MITCHELL MELICH
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 FINANCIAL MANAGEMENT CORPORATION
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
<PAGE>
THE
ACHIEVEMENT
FUNDS
[LOGO OMITTED] FOR YOUR LIFE'S JOURNEY
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-014-02
