Shares of any of The Achievement Funds are:
[BULLET] not obligations or deposits of, or guaranteed by,
First Security Corporation or any of its banks
or non-bank subsidiaries;
[BULLET] not federally insured by the FDIC, the Federal
Reserve Board or any other government agency;
[BULLET] subject to investment risk, including the possible
loss of principal.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Funds. This report is not
authorized for distribution to prospective investors in a Fund unless preceded
or accompanied by a current prospectus.
For more information, including a prospectus, call 1-800-472-0577.
ACH-F-016-03
[ACHIEVEMENT FUNDS LOGO OMITTED]
THE ACHIEVEMENT FUNDS
For Your Life's Journey
[PHOTO OF LANDSCAPE OMITTED]
Semi-Annual
Report to
Shareholders
July 31, 1997
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders ...............................2
Fund Objectives ......................................3
Investment Adviser's Report ..........................4
Financial Statements .................................9
- -------------------------------------------------------
The Achievement Funds
Semi-Annual Report
JULY 31, 1997
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 Municipal Bond Fund
[ACHIEVEMENT FUNDS LOGO OMITTED]
THE ACHIEVEMENT FUNDS
For Your Life's Journey
<PAGE>
Letter to Shareholders
THIS IS INDEED AN EXCITING TIME TO BE A PARTICIPANT IN THE MUTUAL FUND INDUSTRY
AND THE STOCK MARKET IN GENERAL. ACCORDING TO THE INVESTMENT COMPANY INSTITUTE,
THE COMBINED ASSETS INVESTED IN MUTUAL FUNDS ON A NATIONAL BASIS INCREASED TO
$4.265 TRILLION IN JULY 1997, UP FROM THE JULY 1996 MARK OF $3.139 TRILLION.
THIS FLOOD OF MONEY INTO MUTUAL FUNDS, COMBINED WITH A ROBUST STOCK MARKET, HAS
CREATED A DYNAMIC SETTING FOR OUR INVESTMENT MANAGER, FIRST SECURITY INVESTMENT
MANAGEMENT INC., AS THEY WORK TO PROVIDE ATTRACTIVE RETURNS TO OUR ACHIEVEMENT
FUND SHAREHOLDERS.
WE ARE ALSO EXCITED ABOUT THE UPCOMING THIRD ANNIVERSARY OF THE CREATION OF THE
ACHIEVEMENT FUNDS FAMILY OF MUTUAL FUNDS, WHICH WILL BE CELEBRATED IN DECEMBER
OF THIS YEAR. WE BELIEVE THAT OUR PHILOSOPHY OF SEEKING SOLID PERFORMANCE OVER
THE LONG-TERM TIME HORIZON HAS PROVEN TO BE A VALUABLE ONE THUS FAR.
OUR INVESTMENT PHILOSOPHY HAS PROVEN TO BE ESPECIALLY EFFECTIVE DURING THE
FIRST-HALF OF 1997, AS WE HAVE SEEN CONTINUED GROWTH IN THE STOCK MARKET,
INTERRUPTED BY SEVERAL "CORRECTIONS" ALONG THE WAY. DURING THIS PERIOD, THE
ACHIEVEMENT FUNDS HAVE PERFORMED WELL COMPARED TO THEIR MARKET INDICES;
INCLUDING THE BALANCED AND BOND FUNDS WHICH HAVE BEEN IMPACTED BY THE RELATIVELY
MODEST RETURNS IN THE BOND MARKET WHEN COMPARED TO STOCKS. AS FURTHER DISCUSSED
IN HIS INVESTMENT ADVISER'S REPORT INCLUDED HEREIN, STERLING JENSON LOOKS FOR
CONTINUED STRENGTH IN THE STOCK MARKET AND A STATIC BOND MARKET FOR THE
REMAINDER OF 1997, BASED ON HIS ANALYSIS OF THE VARIOUS MARKET INDICATORS AND
TRENDS.
AS ALWAYS, WE WELCOME YOUR QUESTIONS AND COMMENTS. YOU CAN REACH OUR SHAREHOLDER
SERVICES PERSONNEL BY CALLING 1 (800) 472-0577 OR BY CONTACTING YOUR FINANCIAL
ADVISER.
/S/ SIGNATURE /S/ SIGNATURE
FREDERICK A. MORETON, JR. JOHN L. RUDISILL
CHAIRMAN OF THE BOARD OF TRUSTEES SENIOR VICE PRESIDENT AND MANAGER
The Achievement Funds Trust Mutual Fund Center
First Security Corporation
2
<PAGE>
THE ACHIEVEMENT FUNDS
Fund Objectives
STOCK AND BALANCED FUNDS
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
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.
THE ACHIEVEMENT 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.
================================================================================
Terms You Need to Know
TOTAL RETURN is the change in value of an investment from the beginning to the
end of a period, assuming the reinvestment of all distributions.
NET ASSET VALUE (NAV) is the market worth of one share of a mutual fund. This
figure is derived by taking a fund's total assets - securities, cash and any
accrued earnings - deducting liabilities, and dividing by the number of shares
outstanding.
YIELD is the percentage rate at which a fund's portfolio earns income, based on
a formula set by the Securities and Exchange Commission.
3
<PAGE>
Investment Adviser's Report
The first half of fiscal 1997 has, in the words of Federal Reserve Chairman Alan
Greenspan, been a "once in a century" experience with the stock market
continuing its unrelentless climb to record setting heights. A confluence of
economic and market factors have simultaneously converged together in optimal
doses to produce ideal conditions for a third straight year of unprecedented
market performance.
The strength of the economy has produced unexpected profit performance by
Corporate America while global competition and ample supply capacity have held
inflation in check. This "one-two punch" of strong earnings and low inflation,
coupled with the "knock-out hit" of strong cashflows into stocks, have given an
underpinning to the market's growth that appears to have continuing strength for
the foreseeable future.
The Federal Reserve, which raised the Fed Funds rate one-quarter of a percent in
March, appears to be on hold through the remainder of 1997. Gross Domestic
Product (GDP) rose at a worrisome 4.9% in the first quarter of the year but
subsided to a more sustainable estimated 2.2% growth in the second quarter.
Worldwide growth in Europe and Asia continues to be subdued at rates generally
much lower than those found in the United States. With the Producer Price Index
falling an unprecedented seven months in a row through July, it appears that the
Fed has no reason to increase rates anytime soon.
The worry about resurgent inflation, however, will continue as long as the
economy keeps expanding. We would expect the stock market to experience
gyrations over the remainder of the year with a ten percent or so correction
almost a given. But the direction should continue to be pointed upward over the
long term as investors remain convinced that stocks will continue to provide the
best long term investment returns.
IN SUMMARY
- --------------------------------------------------------------------------------
We expect annualized GDP growth to accelerate slightly in the third quarter of
1997 over that posted in the second quarter, somewhere above 3 percent. The 30
year treasury bond yield could experience an increase from the July ending rate
of 6.30% to something closer to 6.75%. We then expect economic growth and rates
to moderate toward year end with the bond yield closing near 6.50%. GDP growth
of 2% to 3% should continue over the next year, providing favorable corporate
earnings. The Dow should reach near 8,500 before year end and could possibly
reach 10,000 before the turn of the century.
At First Security Investment Management, Inc., we continue to have a long-term,
optimistic outlook for the securities market. We manage The Achievement Funds
carefully, and monitor them continuously, in an effort to provide the best
returns available within the guidelines and constraints controlling the risk
profile of each Fund.
THE ACHIEVEMENT EQUITY FUND
- --------------------------------------------------------------------------------
The stock market rose in early in 1997 through March before falling to its 1997
low in April. Since April the market traded up to new records in response to
subdued inflation and better than expected profit performance by Corporate
America. During this period, almost every economic sector performed well with
the large multinational companies outperforming their smaller counterparts.
Using our "GROWTH AT A PRICE" methodology of evaluating opportunities for
investment, we have underweighted the consumer staple sector and overweighted
the technology sector. Given our long term investment horizon, we see
significant return potential in the networking and telecommunications equipment
industries.
4
<PAGE>
THE ACHIEVEMENT FUNDS
The factors that we look for in selecting stock investments include high
earnings growth rates both near term and long term, price/earnings ratios in
the lower end of historic ranges for each company, good managements that are
able to increase return-on-equity through growing revenues, margins and asset
turnover, and in general, stocks that may have been overlooked by Wall Street
analysts. The Achievement Equity Fund invests in medium to large capitalization
companies that have been seasoned through many business cycles.
The portfolio is well diversified, with each stock averaging less than 2 percent
of the portfolio's total market value. Sector weights, with moderate
over-or-under weightings to the S&P 500 Index, are adjusted according to our
economic outlook and stock market valuations.
We expect to find future values in two ways; through stock selection using the
investment adviser's proprietary methodologies and through sector weights of the
portfolio.
THE ACHIEVEMENT BALANCED FUND
- --------------------------------------------------------------------------------
Over the past year investors worried continuously about inflation and the
sustainability of earnings growth. As the year progressed it became clear that
inflation was very low and earnings growth was better than expected. This was
the backdrop that catapulted the stock market to record highs. During this
period the Achievement Balanced Fund steadily increased its allocation to equity
while reducing its bond exposure. The Fund's asset allocation as of July 31,
1997 is 68% equity, 29% bonds and 3% cash equivalents.
The Fund's equity portion is currently overweighted in technology and
underweighted in consumer staples. Our "GROWTH AT A PRICE" valuation continues
to single out the technology sector as offering some of the best values in the
market while the consumer staples stocks are over-valued relative to their
growth rates. The Fund's sector weight in technology and consumer staples is
currently 21.5% and 19.6% compared with the S&P 500 at 17.6% and 23.4%
respectively.
The bond allocation of the portfolio is structured with a slightly longer
maturity and duration than the Lehman Intermediate Government/Corporate Bond
Index. The latest economic data shows an economy that is experiencing moderate
growth with very low inflation. In this environment we would expect interest
rates to remain stable over the next year. The longer maturity and duration of
the Fund's bond allocation should benefit in this forecast.
Looking forward we expect that both the bond and stock markets will react
favorably to an economy that is growing at a rate that is, in our opinion,
sustainable without producing inflation. The stock market is at historically
high valuation levels but, inflation is also lower than anyone expected at this
point in the economic cycle. The key to market stability will be the rate of
inflation. The Achievement Balanced Fund will change its asset allocation mix,
within the limitations outlined in the prospectus, to take advantage of
whichever way inflation heads over the next year.
THE ACHIEVEMENT
INTERMEDIATE TERM BOND FUND
- --------------------------------------------------------------------------------
Interest rates have been quite volatile year-to-date as demonstrated by the
thirty year U.S. Treasury which has traded in a range from 6.30% to 7.16% and is
5
<PAGE>
currently at 6.54%. The most important factor influencing rates has been
inflation, both reported and expected. Reported inflation has been at very low
levels so far in 1997 even though the nation's GDP has been stronger than most
had expected. Expected inflation has been influenced negatively by low
unemployment rates, high capacity utilization rates, and other indications of a
strong economy. On the other hand expected inflation has been influenced
positively by continued low wage growth and a Federal government balanced budget
agreement.
Comparing the current Treasury rates to rates on December 31, 1996 it becomes
apparent that even though there have been some broad rate swings, the absolute
change has actually been quite small. The yield curve is a little bit flatter
but rates on 5 to 30 year maturities have dropped just 10 to 18 basis points
(.10% to .18%) year-to-date. On a year-to-date, total return basis, mortgage
backed securities lead at 5.10% followed by intermediate corporates at 4.31%,
asset backed securities at 3.92% and government securities at 3.75%.
The Achievement Intermediate Term Bond Fund currently has a heavier weighting in
"spread product" (non-treasuries) than does the comparative Lehman Intermediate
Government/Corporate Bond Index in order to improve income and total return.
Looking forward, we expect that the thirty year U.S. Treasury will trade in a
range of 6.25% to 6.75% for the remainder of the year trending towards lower
than current levels as we move into 1998 based on our expectation of continued
low inflation and an economy showing slower growth trends. Based on these
expectations, a duration slightly longer than the index is currently being
maintained.
THE ACHIEVEMENT SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
Although interest rates have been quite volatile year-to-date, the absolute
change in rates in the one to three year maturity range has been negligible.
Rates in this maturity range are only up or down by 2 basis points (.02%) since
the end of 1996.
Duration and weighted average maturity have been maintained in ranges close to
the current respective levels of 1.25 years and 1.32 years for most of 1997. The
Achievement Short Term Bond Fund remains a very stable investment vehicle as
evidenced by a Net Asset Value (NAV) almost identical to the initial $10.00 NAV
over two and one half years ago.
The asset allocation continues to strongly favor investment grade corporate
securities in an effort to generate more income. As long as the economy remains
healthy and companies are able to maintain or improve the quality of their
outstanding debt, this strategy will remain in place.
Because of the flat shape of the yield curve, yields received on "short term"
bond funds will generally not differ greatly from institutional money market
accounts. However, if at some point there is a decline in the Fed Funds rate or
if the shape of the yield curve steepens or becomes more "normal" we expect
there to be greater differentiation.
THE ACHIEVEMENT SHORT TERM
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Interest rates on 3-year, A-rated general obligation municipal bonds rose 25
basis points (.25%) from the end of January through mid-April. Rates then
declined 55 basis points (.55%) at the end of July.
6
<PAGE>
THE ACHIEVEMENT FUNDS
The NAV of the Achievement Short Term Municipal Bond Fund ranged from $9.97 to
$10.12. This low volatility and stable net asset value is characteristic of the
Fund and remains the key investment consideration going forward.
Longer-term, we think interest rates will be flat to down moderately. This
scenario should provide for continued stable to rising net asset value. In this
environment, we look to position the portfolio as close to the maximum 3-year
average weighted maturity as possible. The Fund ended the period with an average
weighted maturity of 2.78 years.
The Achievement Short Term Municipal Bond Fund is designed for conservative,
high-tax bracket investors who desire stability of principal coupled with
steady, monthly cash flow that is exempt from federal income taxes.
THE ACHIEVEMENT IDAHO
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Interest rate volatility characterized the municipal bond market over the past
six months as the financial markets endured a Federal Reserve Board interest
rate hike in late March and subsequently watched interest rates decline from
that point as investors recognized a slow growth, no inflation economic
environment. Over the past six months tax-exempt interest rates have declined
10-30 basis points (.10% - .30%) across the yield curve in response to this
investment climate.
The Fund continues to maintain an investment objective to provide income to
investors exempt from Federal and Idaho state income taxes. Diversification
remains a key issue in the management of this single state fund. Approximately
100 individual issues from all geographic areas of the State of Idaho and with
maturities ranging from 4 to 30 years comprise the fund. Quality remains a
primary consideration as well with all of the holdings rated A or better and 67%
of portfolio holdings rated AAA by a national rating agency. Over the past six
months the manager modestly extended the weighted average maturity of the Fund
to 15 years taking advantage of the recent interest rate decline.
We expect the ongoing tightness of Idaho municipal bond supply combined with a
constant demand from investors to help mitigate any significant market/interest
rate volatility over the next year. Trading activity in the Fund will
concentrate on maintaining a fully invested position while identifying market
opportunities to increase yield with the diversified, quality orientation of the
portfolio.
THE ACHIEVEMENT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Interest rates on 10-year, A-rated general obligation municipal bonds rose 20
basis points (.20%) from the end of January through mid-April. Rates then
declined 60 basis points (.60%) to the end of July. The Achievement Municipal
Bond Fund benefited from this decline in yield by maintaining a moderately
longer duration. Municipal returns, in general, have been strong relative to
taxable issues as a result of a high level of bond calls and maturities without
sufficiently offsetting new supply.
Longer-term, we think interest rates will trade in a narrower, and perhaps
lower, band than we have experienced in recent years. This should continue to
7
<PAGE>
benefit price appreciation of the Fund. In this type of environment we see more
opportunity for higher yielding securities in areas such as housing and health
care. Housing bonds have been issued by state and local authorities to provide
housing opportunities to low- and moderate-income families. These bonds are
backed by the underlying mortgages and are often guaranteed by government
agencies such as the Federal Housing Administration (FHA). The moderate level of
uncertainty created by prepayment of mortgages provides extra yield and lower
volatility than in comparable length municipal securities. The extra yield helps
the bonds to outperform in narrower rate environments. Health care bonds offer
another investment alternative in the municipal market. Due to the competitive
nature in the industry, health care bonds generally yield more than similarly
rated revenue bonds.
The relatively small size of this Fund also allows us to capitalize on special
situations in the municipal marketplace. We look for value, which may occur for
a variety of reasons. Some of the reasons include buyer preferences for specific
coupon structure, underlying credit uncertainties or investor unwillingness or
lack of ability to analyze special redemption language and prepayment
probabilities. In addition, we may emphasize different sectors or maturity
structures of the municipal market depending on the attractiveness relative to
historical norms or current opportunities.
/S/ SIGNATURE
Sterling K. Jenson
PRESIDENT
First Security Investment Management,Inc.
Investment Adviser
8
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
- ---------------------------------------------------------
EQUITY FUND
- ---------------------------------------------------------
[PIE CHART OMITTED]
Other 8.5%
Utilities 6.1%
Retail 3.8%
Oil-Energy 9.5%
Financial 14.1%
Chemicals and Drugs 14.0%
Consumer Products 7.4%
Durable Goods 36.6%
% OF TOTAL PORTFOLIO INVESTMENTS
- ---------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------
COMMON STOCKS -- 98.3%
AEROSPACE -- 2.5%
Boeing 40,000 $ 2,352
Lockheed Martin 27,000 2,875
----------
5,227
----------
AGRICULTURE -- 1.0%
Dole Food 50,000 2,047
----------
AUTOMOTIVE -- 1.9%
Borg-Warner Automotive 45,000 2,509
Ford Motor 38,000 1,553
----------
4,062
----------
BANKS -- 7.7%
Banc One 50,000 2,806
BankAmerica 45,000 3,397
Barnett Banks of Florida 28,000 1,594
Chase Manhattan Bank 13,800 1,567
Citicorp 15,000 2,036
NationsBank 45,000 3,203
Norwest 25,000 1,577
----------
16,180
----------
BEAUTY PRODUCTS -- 2.2%
Gillette 23,000 2,277
Procter & Gamble 15,000 2,282
----------
4,559
----------
- ---------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------
BIOTECHNOLOGY -- 0.0%
Genzyme (Tissue Repair)* 2,580 $ 28
----------
CAPITAL GOODS -- 4.7%
Case 26,000 1,623
General Electric 94,000 6,598
Harnischfeger Industries 40,000 1,725
----------
9,946
----------
CHEMICALS -- 2.6%
B.F. Goodrich 60,000 2,711
Monsanto 55,000 2,740
----------
5,451
----------
COMMUNICATIONS EQUIPMENT -- 3.8%
Allen Telecom 82,000 2,091
Ascend Communications* 48,000 2,610
GTE 34,000 1,581
Pairgain Technologies* 76,666 1,648
----------
7,930
----------
COMPUTER SOFTWARE -- 2.2%
Microsoft* 15,500 2,193
Oracle Systems* 45,000 2,450
----------
4,643
----------
COMPUTERS & SERVICES -- 6.4%
Cisco Systems* 58,000 4,615
Electronic Data Systems 59,000 2,552
Hewlett Packard 33,000 2,312
International Business
Machines 37,000 3,913
----------
13,392
----------
CONGLOMERATE -- 1.0%
Tyco International Limited 27,000 2,187
----------
CONSTRUCTION CYCLICALS -- 0.9%
Armstrong World Industries 25,000 1,845
----------
CONSUMER PRODUCTS -- 1.0%
Nike 34,000 2,119
----------
DRUGS -- 9.1%
Abbott Laboratories 24,600 1,610
Eli Lilly 16,500 1,864
Genzyme* 86,000 2,343
Merck 21,500 2,235
Mylan Laboratories 138,000 2,329
Pfizer 40,000 2,385
Schering Plough 50,000 2,728
Smithkline Beecham ADR 37,919 3,688
----------
19,182
----------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Equity Fund (concluded)
- --------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------
ELECTRICAL UTILITIES -- 1.5%
FPL Group 27,000 $ 1,293
Texas Utilities 54,000 1,914
----------
3,207
----------
ENTERTAINMENT -- 1.0%
Walt Disney 25,000 2,020
----------
FINANCIAL SERVICES -- 3.4%
American Express 26,000 2,177
Federal National Mortgage
Association 53,000 2,508
Imperial Credit Industries* 107,724 2,505
----------
7,190
----------
FOOD, BEVERAGE & TOBACCO -- 2.1%
Coca Cola 33,000 2,285
PepsiCo 57,000 2,184
----------
4,469
----------
GAS/NATURAL GAS -- 1.6%
Coastal 60,000 3,263
----------
HOTELS & LODGING -- 1.1%
Hilton Hotels 71,000 2,232
----------
INSURANCE -- 1.9%
American International Group 21,600 2,300
General Re 8,200 1,713
----------
4,013
----------
MEDICAL PRODUCTS & SERVICES -- 7.5%
Columbia/HCA Healthcare 45,000 1,451
Genesis Health Ventures* 65,000 2,202
Guidant 23,500 2,144
Johnson & Johnson 43,000 2,679
Medtronic 32,977 2,877
Quorum Health Group* 55,000 1,959
Sola International* 5,266 168
United States Surgical 64,000 2,376
----------
15,856
----------
METALS & MINING -- 2.4%
Aluminum Company of America 25,000 2,213
Titanium Metals* 90,000 2,880
----------
5,093
----------
PETROLEUM & FUEL PRODUCTS -- 2.7%
Phillips Petroleum 51,000 2,349
Schlumberger 44,000 3,361
----------
5,710
----------
- --------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------
PETROLEUM REFINING -- 6.1%
Amoco 31,000 $ 2,914
Exxon 66,000 4,241
Mobil 50,000 3,825
Royal Dutch Petroleum 32,000 1,790
----------
12,770
----------
PRINTING & PUBLISHING -- 1.1%
McGraw-Hill 34,000 2,306
----------
RAILROADS -- 0.7%
Union Pacific 21,000 1,505
----------
REAL ESTATE INVESTMENT TRUST -- 2.0%
Innkeepers USA Trust 148,578 2,089
Security Capital Industrial
Trust 94,400 2,130
----------
4,219
----------
RETAIL -- 4.6%
Albertson's 25,000 927
Eagle Hardware & Garden* 75,000 1,584
Gap Stores 50,000 2,222
Sears Roebuck 35,000 2,216
Wal-mart Stores 70,000 2,629
----------
9,578
----------
SEMI-CONDUCTORS/INSTRUMENTS -- 3.4%
Analog Devices* 75,000 2,358
Intel 52,000 4,774
----------
7,132
----------
TELEPHONES & TELECOMMUNICATION -- 7.2%
Bellsouth 40,000 1,895
Lucent Technologies 20,000 1,699
MCI Communications 25,000 883
Motorola 67,000 5,381
SBC Communications 25,000 1,480
Worldcom* 110,000 3,843
----------
15,181
----------
TRUCKING -- 1.0%
US Freightways 67,000 2,081
----------
TOTAL COMMON STOCKS
(Cost $142,882) 206,623
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------
CASH EQUIVALENTS -- 1.5%
SEI Daily Income Trust Money
Market Portfolio $1,534 $ 1,534
SEI Daily Income Trust Prime
Obligation Portfolio 1,548 1,548
--------
TOTAL CASH EQUIVALENTS
(Cost $3,082) 3,082
--------
TOTAL INVESTMENTS -- 99.8%
(Cost $145,964) 209,705
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.2% 333
--------
NET ASSETS:
Portfolio Shares of Institutional Class (unlimited
authorization -- no par value) based on
12,017,011 outstanding shares of
beneficial interest 123,598
Portfolio Shares of Retail Class (unlimited
authorization -- no par value) based
on 336,403 outstanding shares of beneficial
interest 4,305
Undistributed net investment income 48
Accumulated net realized gain on investments 18,346
Net unrealized appreciation on investments 63,741
--------
TOTAL NET ASSETS -- 100.0% $210,038
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $17.00
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHAR -- RETAIL CLASS $17.01
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS ($17.01/95.5%) $17.81
========
- -------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
- -------------------------------------------------------
BALANCED FUND
- -------------------------------------------------------
[PIE CHART OMITTED]
Corporate Securities 14.5%
U.S. Government Securities 14.8%
Other 3.2%
Common Stocks 67.5%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 14.1%
U.S. Treasury Notes
8.125%, 02/15/98 $2,000 $ 2,026
7.000%, 04/15/99 2,500 2,552
8.000%, 08/15/99 2,000 2,085
7.750%, 11/30/99 2,500 2,606
7.750%, 02/15/01 2,500 2,652
7.875%, 08/15/01 2,500 2,678
7.500%, 05/15/02 2,500 2,666
6.250%, 02/15/03 2,500 2,538
7.250%, 05/15/04 2,500 2,676
7.875%, 11/15/04 2,500 2,773
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $24,035) 25,252
----------
U.S. GOVERNMENT AGENCY OBLIGATION -- 0.6%
Federal Home Loan Bank
6.490%, 09/08/97 1,000 1,001
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $998) 1,001
----------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Balanced Fund (continued)
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
ASSET-BACKED SECURITY -- 0.7%
Olympic Automobile Receivables Trust,
Series 1995-E, Class A5
5.950%, 11/15/01 $1,325 $ 1,323
----------
TOTAL ASSET-BACKED SECURITY
(Cost $1,333) 1,323
----------
MORTGAGE-BACKED SECURITIES -- 2.4%
American Southwest Financial Securities,
Series 1996-FHA1, Class A
7.000%, 11/25/38 1,500 1,529
Citicorp Mortgage Securities,
Series 1997-2, Class A5 (A)
7.250%, 05/25/27 1,500 1,512
Donaldson Lufkin Jenrette
Mortgage Association,
Series 1997-CF1, Class A1B
7.600%, 04/15/07 1,200 1,284
----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $4,209) 4,325
----------
CORPORATE BONDS -- 11.2%
FINANCE -- 8.4%
Aetna Services
7.125%, 08/15/06 1,500 1,543
Associates of North America MTN
8.420%, 01/05/00 2,000 2,102
Banc One
7.250%, 08/01/02 1,500 1,554
BankAmerica MTN
7.125%, 05/12/05 2,000 2,062
Exxon Capital
7.875%, 08/15/97 2,000 2,001
First Union
7.500%, 07/15/06 2,000 2,110
Ford Motor Credit
7.750%, 10/01/99 2,000 2,067
Safeco
6.875%, 07/15/07 1,500 1,515
----------
14,954
----------
INDUSTRIAL -- 2.9%
Lucent Technologies
7.250%, 07/15/06 2,000 2,100
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
Philip Morris
7.250%, 09/15/01 $ 2,000 $ 2,048
Seagram YB
6.500%, 04/01/03 1,000 1,006
----------
5,154
----------
TOTAL CORPORATE BONDS
(Cost $19,499) 20,108
----------
COMMON STOCKS -- 67.1%
AEROSPACE -- 1.8%
Boeing 20,000 1,176
Lockheed Martin 20,000 2,130
----------
3,306
----------
AGRICULTURE -- 0.7%
Dole Food 30,000 1,228
----------
AUTOMOTIVE -- 1.4%
Borg-Warner Automotive 28,000 1,561
Ford Motor 22,000 899
----------
2,460
----------
BANKS -- 5.4%
Banc One 36,059 2,024
BankAmerica 26,000 1,963
Barnett Banks of Florida 18,000 1,025
Chase Manhattan Bank 8,000 908
Citicorp 7,500 1,018
NationsBank 24,000 1,708
Norwest 15,000 946
----------
9,592
----------
BEAUTY PRODUCTS -- 1.4%
Gillette 11,500 1,139
Procter & Gamble 9,000 1,369
----------
2,508
----------
BIOTECHNOLOGY -- 0.0%
Genzyme (Tissue Repair)* 1,650 18
----------
CAPITAL GOODS -- 3.2%
Case 20,000 1,249
General Electric 50,000 3,509
Harnischfeger Industries 23,750 1,024
----------
5,782
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------
CHEMICALS -- 1.8%
B.F. Goodrich 29,100 $ 1,315
Monsanto 37,500 1,868
----------
3,183
----------
COMMUNICATIONS EQUIPMENT -- 2.5%
Allen Telecom 47,435 1,210
Ascend Communications* 26,000 1,414
GTE 19,000 884
Pairgain Technologies* 45,334 975
----------
4,483
----------
COMPUTER SOFTWARE -- 1.5%
Microsoft* 9,000 1,274
Oracle Systems* 26,000 1,415
----------
2,689
----------
COMPUTERS & SERVICES -- 4.2%
Cisco Systems* 32,891 2,617
Electronic Data Systems 34,000 1,471
Hewlett Packard 18,000 1,261
International Business
Machines 21,400 2,263
----------
7,612
----------
CONGLOMERATE -- 0.8%
Tyco International Limited 17,000 1,377
----------
CONSTRUCTION CYCLICALS -- 0.6%
Armstrong World Industries 14,000 1,033
----------
CONSUMER PRODUCTS -- 0.7%
Nike 20,000 1,246
----------
DRUGS -- 6.0%
Abbott Laboratories 17,500 1,145
Eli Lilly 9,300 1,051
Genzyme* 55,000 1,499
Merck 13,000 1,351
Mylan Laboratories 70,000 1,181
Pfizer 24,000 1,431
Schering Plough 28,000 1,528
Smithkline Beecham ADR 16,000 1,556
----------
10,742
----------
ELECTRICAL UTILITIES -- 1.2%
FPL Group 17,000 814
Texas Utilities 40,000 1,418
----------
2,232
----------
- --------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------
ENTERTAINMENT -- 0.6%
Walt Disney 13,000 $ 1,051
----------
FINANCIAL SERVICES -- 2.1%
American Express 16,000 1,340
Federal National
Mortgage Association 20,500 970
Imperial Credit Industries* 61,276 1,425
----------
3,735
----------
FOOD, BEVERAGE & TOBACCO -- 1.7%
Coca Cola 25,000 1,731
PepsiCo 32,000 1,226
----------
2,957
----------
GAS/NATURAL GAS -- 1.4%
Coastal 46,000 2,501
----------
HOTELS & LODGING -- 0.7%
Hilton Hotels 38,000 1,195
----------
INSURANCE -- 1.3%
American International Group 12,000 1,278
General Re 5,000 1,044
----------
2,322
----------
MEDICAL PRODUCTS & SERVICES -- 4.7%
Columbia/HCA Healthcare 23,500 758
Genesis Health Ventures* 37,000 1,253
Guidant 12,000 1,095
Johnson & Johnson 24,000 1,496
Medtronic 16,141 1,408
Quorum Health Group* 30,000 1,069
Sola International* 3,394 108
United States Surgical 35,000 1,299
----------
8,486
----------
METALS & MINING -- 1.6%
Aluminum Company of America 16,000 1,416
Titanium Metals* 43,000 1,376
----------
2,792
----------
PETROLEUM & FUEL PRODUCTS -- 1.4%
Phillips Petroleum 23,000 1,059
Schlumberger 20,000 1,528
----------
2,587
----------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
13
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Balanced Fund (concluded)
- --------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------
PETROLEUM REFINING -- 4.1%
Amoco 20,000 $ 1,880
Exxon 39,000 2,506
Mobil 24,000 1,836
Royal Dutch Petroleum 20,000 1,119
----------
7,341
----------
PRINTING & PUBLISHING -- 1.1%
McGraw-Hill 30,000 2,034
----------
RAILROADS -- 0.5%
Union Pacific 11,800 846
----------
REAL ESTATE INVESTMENT TRUST -- 1.4%
Innkeepers USA Trust 89,142 1,254
Security Capital Industrial
Trust 55,927 1,262
----------
2,516
----------
RETAIL -- 3.1%
Albertson's 20,000 741
Eagle Hardware & Garden* 42,000 887
Gap Stores 30,000 1,333
Sears Roebuck 20,000 1,266
Wal-mart Stores 36,000 1,352
----------
5,579
----------
SEMI-CONDUCTORS/INSTRUMENTS -- 2.5%
Analog Devices* 47,333 1,488
Intel 32,000 2,938
----------
4,426
----------
TELEPHONES & TELECOMMUNICATION -- 4.8%
Bellsouth 23,000 1,090
Lucent Technologies 11,000 934
MCI Communications 16,000 565
Motorola 40,000 3,213
SBC Communications 14,000 829
Worldcom* 55,000 1,922
----------
8,553
----------
TRUCKING -- 0.9%
USFreightways 50,000 1,553
----------
TOTAL COMMON STOCKS
(Cost $82,928) 119,965
----------
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
CASH EQUIVALENTS -- 3.2%
SEI Daily Income Trust
Money Market Portfolio $5,236 $ 5,237
SEI Daily Income Trust Prime
Obligation Portfolio 502 502
--------
TOTAL CASH EQUIVALENTS
(Cost $5,739) 5,739
--------
TOTAL INVESTMENTS -- 99.3%
(Cost $138,741) 177,713
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.7% 1,209
--------
NET ASSETS:
Portfolio Shares of Institutional Class (unlimited
authorization -- no par value) based on
12,862,549 outstanding shares of
beneficial interest 130,515
Portfolio Shares of Retail Class (unlimited
authorization -- no par value) based
on 242,410 outstanding shares of
beneficial interest 2,810
Undistributed net investment income 143
Accumulated net realized gain on investments 6,482
Net unrealized appreciation on investments 38,972
--------
TOTAL NET ASSETS -- 100.0% $178,922
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $13.65
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS $13.64
========
MAXIMUM OFFERING PRICE PER
SHARE -- RETAIL CLASS ($13.64/95.5%) $14.28
========
- -------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
MTN -- MEDIUM TERM NOTE
YB -- YANKEE BOND
(A) FLOATING RATE SECURITY -- THE RATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT AS OF JULY 31, 1997.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- ----------------------------------------------------------
INTERMEDIATE TERM BOND FUND
- ----------------------------------------------------------
[PIE CHART OMITTED]
Corporate Securities 45.9%
U.S. Government Securities 51.7%
Cash Equivalents 2.4%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
CORPORATE BONDS -- 33.6%
ENTERTAINMENT -- 1.4%
Walt Disney
6.750%, 03/30/06 $2,000 $ 2,040
----------
FINANCE -- 16.1%
Aetna Services
6.750%, 08/15/01 2,000 2,035
American General Finance
7.250%, 04/15/00 1,000 1,027
Associates Corporation of
North America MTN
6.810%, 08/03/01 1,000 1,019
7.540%, 04/14/04 1,000 1,056
BankAmerica
7.125%, 05/01/06 2,000 2,067
Chase Manhattan
8.125%, 06/15/02 1,000 1,072
Citicorp
7.125%, 06/01/03 1,000 1,035
Commercial Credit
6.875%, 05/01/02 1,000 1,024
First Union
7.050%, 08/01/05 1,000 1,025
Ford Motor Credit
8.000%, 06/15/02 1,000 1,067
7.750%, 03/15/05 1,000 1,066
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
General Electric Capital MTN
6.840%, 04/26/98 $1,000 $ 1,010
GMAC MTN
7.250%, 05/15/03 1,000 1,037
Grand Metro
7.125%, 09/15/04 1,000 1,035
Household Finance
7.650%, 05/15/07 1,000 1,072
JP Morgan
7.250%, 01/15/02 1,000 1,037
Lehman Brothers Holdings MTN
7.110%, 09/27/99 1,000 1,019
NationsBank
7.625%, 04/15/05 1,000 1,060
Society National Bank
7.250%, 06/01/05 1,000 1,036
Salomon Medium TTN
7.000%, 05/15/99 1,000 1,014
US West Capital Funding MTN
6.850%, 01/15/02 1,000 1,019
----------
23,832
----------
INDUSTRIAL -- 15.4%
American Home Products
7.700%, 02/15/00 1,000 1,037
AT&T
6.750%, 04/01/04 1,000 1,020
AT&T MTN
7.140%, 07/02/99 1,000 1,020
CSR America
6.875%, 07/21/05 2,000 2,033
CSX Transportation
7.540%, 03/15/03 1,000 1,050
Dayton Hudson
7.500%, 07/15/06 2,000 2,098
Dow Capital BV YB
7.125%, 01/15/03 1,000 1,028
Hertz
7.000%, 07/01/04 2,000 2,048
International Lease
7.000%, 06/01/98 1,000 1,011
J.C. Penney MTN
7.050%, 05/23/05 1,000 1,026
John Deere Capital
7.140%, 09/15/98 1,000 1,016
MCI Communications
7.125%, 01/20/00 1,000 1,024
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
15
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Intermediate Term Bond Fund (concluded)
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
INDUSTRIAL (CONTINUED)
Nabisco
6.700%, 06/15/02 $1,000 $ 1,010
Pacific Bell
7.000%, 07/15/04 1,000 1,035
Ryder Systems
7.340%, 11/01/00 1,040 1,074
Sara Lee MTN
7.400%, 03/22/02 1,000 1,039
Southwestern Bell Telephone MTN
6.250%, 03/12/01 1,150 1,151
Texas Instruments MTN
6.875%, 07/15/00 1,000 1,021
Waste Management
7.700%, 10/01/02 1,000 1,053
----------
22,794
----------
UTILITY -- 0.7%
Union Electric
6.750%, 10/15/99 1,000 1,014
----------
TOTAL CORPORATE BONDS
(Cost $49,054) 49,680
----------
U.S. TREASURY OBLIGATIONS -- 44.1%
U.S. Treasury Bond
7.625%, 02/15/07 1,000 1,061
U.S. Treasury Notes
7.125%, 10/15/98 3,000 3,052
6.500%, 04/30/99 2,000 2,026
6.750%, 05/31/99 8,000 8,139
6.750%, 06/30/99 5,000 5,093
6.875%, 07/31/99 4,000 4,084
7.125%, 09/30/99 4,000 4,111
7.750%, 01/31/00 1,500 1,568
7.125%, 02/29/00 4,000 4,125
6.750%, 04/30/00 3,000 3,070
6.250%, 08/31/00 6,000 6,071
6.125%, 09/30/00 1,000 1,008
7.750%, 02/15/01 2,500 2,652
6.375%, 03/31/01 2,000 2,033
7.875%, 08/15/01 1,500 1,607
7.500%, 11/15/01 1,000 1,060
6.250%, 02/15/03 2,000 2,030
7.500%, 02/15/05 1,000 1,089
6.500%, 08/15/05 1,000 1,029
6.875%, 05/15/06 1,000 1,055
7.000%, 07/15/06 2,000 2,127
6.500%, 10/15/06 2,000 2,060
7.250%, 08/15/04 5,000 5,360
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $64,762) 65,510
----------
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.9%
Federal Home Loan Bank
7.190%, 04/27/01 $1,000 $ 1,037
7.280%, 07/25/01 1,000 1,043
7.390%, 08/22/01 1,000 1,048
Federal Home Loan Mortgage
6.795%, 12/01/03 1,000 1,034
Federal National Mortgage Association
7.050%, 12/10/98 1,000 1,017
6.850%, 04/05/04 1,000 1,038
Federal National Mortgage
Association MTN
6.625%, 04/18/01 1,000 1,018
7.520%, 08/24/05 1,000 1,011
Federal National Mortgage
Association MTN
7.500%, 10/26/06 2,000 2,032
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $10,243) 10,278
----------
ASSET-BACKED SECURITIES -- 2.7%
Olympic Automobile Receivables
Trust, Series 1995-E, Class A5
5.950%, 11/15/01 2,000 1,996
Olympic Automobile Receivables
Trust, Series 1996-B, Class A5
6.900%, 02/15/04 2,000 2,043
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $4,011) 4,039
----------
MORTGAGE-BACKED SECURITIES -- 9.0%
American Southwest Financial Securities,
Series 1996-FHA1, Class A2
7.000%, 11/25/38 3,000 3,057
Citicorp Mortgage Securities, Series
1997-2, Class A5 (A)
7.250%, 05/25/27 3,000 3,023
Donaldson Lufkin Jenrette Mortgage
Association, Series 1996-CF2,
Class A1B (B)
7.290%, 11/12/21 3,000 3,135
Donaldson Lufkin Jenrette
Mortgage Association, Series
1997-CF1, Class A1B (B)
7.600%, 04/15/07 2,000 2,140
Nomura Asset Securities, Series
1994-MD1, Class A1B (A)
7.517%, 03/15/18 2,000 2,071
----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $13,150) 13,426
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
CASH EQUIVALENTS -- 2.3%
SEI Daily Income Trust
Money Market Portfolio $ 755 $ 755
SEI Daily Income Trust
Prime Obligation Portfolio 2,710 2,710
--------
TOTAL CASH EQUIVALENTS
(Cost $3,465) 3,465
--------
TOTAL INVESTMENTS -- 98.6%
(Cost $144,685) 146,398
--------
OTHER ASSETS AND LIABILITIES, NET-- 1.4% 2,062
--------
NET ASSETS:
Portfolio Shares of Institutional Class (unlimited
authorization -- no par value) based on
13,926,455 outstanding shares of
beneficial interest 146,897
Portfolio Shares of Retail Class (unlimited
authorization -- no par value) based
on 218,385 outstanding shares of
beneficial interest 2,271
Accumulated net realized loss on investments (2,421)
Net unrealized appreciation on investments 1,713
--------
TOTAL NET ASSETS-- 100.0% $148,460
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL CLASS $10.50
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- RETAIL CLASS $10.53
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS ($10.53/96.5%) $10.91
========
- -------------------------------------------------------
MTN -- MEDIUM TERM NOTE
YB -- YANKEE BOND
(A) FLOATING RATE SECURITY -- THE RATE REPORTED ON THE STATEMENT
OF NET ASSETS IS THE RATE ON EFFECT AS OF JULY 31, 1997.
(B) PRIVATE PLACEMENT
- -------------------------------------------------------
SHORT TERM BOND FUND
- -------------------------------------------------------
[PIE CHART OMITTED]
Corporate Securities 69.5%
U.S. Government Securities 26.6%
Cash Equivalents 3.9%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
CORPORATE BONDS -- 65.1%
FINANCE -- 35.3%
American General Finance
7.000%, 10/01/97 $1,000 $ 1,003
Associates of North America
6.250%, 03/15/99 1,000 1,005
6.375%, 08/15/99 1,000 1,006
Bankers Trust New York
6.625%, 07/30/99 1,000 1,010
Barnett Bank MTN
6.250%, 07/28/98 1,000 1,004
Bell Atlantic Financial Services Note
6.625%, 11/30/97 2,000 2,007
CIT Group Holdings MTN
6.625%, 09/13/99 1,400 1,416
Comerica Bank
6.750%, 05/12/98 1,500 1,511
Ford Motor Credit
5.625%, 01/15/99 1,000 997
Ford Motor Credit MTN
6.950%, 05/15/00 1,000 1,021
General Motor Acceptance MTN
6.700%, 07/02/99 1,000 1,011
7.125%, 05/10/00 1,000 1,022
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
17
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Short Term Bond Fund (concluded)
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
FINANCE (CONTINUED)
Household Bank FSB
6.250%, 04/01/99 $1,000 $ 1,004
Morgan Stanley Group MTN
6.375%, 01/18/00 1,000 1,007
NationsBank
6.625%, 01/15/98 2,000 2,008
Travelers Property Casualty
6.750%, 09/01/99 1,000 1,015
----------
19,047
----------
INDUSTRIAL -- 16.8%
Coca Cola Enterprises
7.000%, 11/15/99 1,000 1,020
CSC Enterprises
6.800%, 04/15/99 1,000 1,014
CSX Transport
5.740%, 03/15/99 1,000 996
IBM
6.375%, 11/01/97 2,000 2,004
Ingersoll Rand MTN
6.450%, 08/28/98 1,000 1,005
6.510%, 08/09/99 1,000 1,010
International Leases MTN
7.250%, 09/01/97 1,000 1,001
Southwestern Bell Capital MTN
7.000%, 11/22/99 1,000 1,020
----------
9,070
----------
UTILITY -- 13.0%
Delmarva Power & Light
6.375%, 09/01/97 1,000 1,000
Georgia Power
6.125%, 09/01/99 2,000 2,003
Midwest Power
6.750%, 02/01/00 1,000 1,016
Portland General Electric MTN
6.750%, 09/15/97 1,000 1,001
5.650%, 05/15/98 1,000 999
Southern California Gas
5.250%, 03/01/98 1,000 999
----------
7,018
----------
TOTAL CORPORATE BONDS
(Cost $35,148) 35,135
----------
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
MORTGAGE-BACKED SECURITY -- 3.7%
WFS Financial Owner Trust,
Series 1997-A, Class A2
6.150%, 12/20/99 $2,000 $ 2,009
----------
TOTAL MORTGAGE-BACKED SECURITY
(Cost $2,003) 2,009
----------
U.S. TREASURY OBLIGATIONS -- 18.9%
U.S. Treasury Notes
7.125%, 10/15/98 1,000 1,017
6.500%, 04/30/99 1,000 1,013
6.750%, 05/31/99 2,000 2,035
6.875%, 07/31/99 4,000 4,084
6.875%, 08/31/99 2,000 2,044
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $10,195) 10,193
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 7.4%
Federal Home Loan Bank
6.500%, 03/24/00 2,000 2,002
Federal National Mortgage Association
6.450%, 10/14/99 2,000 2,001
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $4,000) 4,003
----------
CASH EQUIVALENTS -- 3.9%
SEI Daily Income Trust
Money Market Portfolio 344 344
SEI Daily Income Trust Prime
Obligation Portfolio 1,744 1,744
----------
TOTAL CASH EQUIVALENTS
(Cost $2,088) 2,088
----------
TOTAL INVESTMENTS -- 99.0%
(Cost $53,434) 53,428
----------
OTHER ASSETS AND LIABILITIES, NET -- 1.0% 538
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class (unlimited
authorization -- no par value) based on
5,370,267 outstanding shares of beneficial
interest $56,059
Portfolio Shares of Retail Class (unlimited
authorization -- no par value) based
on 13,390 outstanding shares of beneficial
interest 136
Accumulated net realized loss on investments (2,223)
Net unrealized depreciation on investments (6)
-------
TOTAL NET ASSETS -- 100.0% $53,966
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.02
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS $10.02
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS ($10.02/98.5%) $10.17
=======
- -------------------------------------------------------
MTN -- MEDIUM TERM NOTE
- --------------------------------------------------------
SHORT TERM MUNICIPAL BOND FUND
- --------------------------------------------------------
[PIE CHART OMITTED]
General Obligations 55.5%
Revenue Bonds 42.5%
Cash Equivalents 2.0%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
MUNICIPAL BONDS -- 97.0%
ALABAMA -- 5.2%
Alabama State, Water Pollution Control
Authority RB AMBAC
5.250%, 08/15/00 $500 $ 516
Mobile, Public Improvements
GO AMBAC
7.125%, 08/15/10 500 551
----------
1,067
----------
ARIZONA -- 3.8%
Arizona State Educational Marketing
Loan Review RB, Series A MBIA
6.900%, 09/01/00 265 283
Arizona State Transportation Board
RB AMBAC
5.000%, 07/01/99 500 509
----------
792
----------
CALIFORNIA -- 2.4%
Oxnard, District #07-1-R Special
Assessment RB
4.900%, 09/02/00 500 503
----------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
19
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Short Term Municipal Bond Fund (continued)
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
COLORADO -- 2.5%
Gunnison Watershed, School District
#RE-001J GO MBIA STAID
5.000%, 12/01/99 $500 $ 510
----------
HAWAII -- 2.6%
Hawaii State GO, Series C FGIC
6.000%, 03/01/01 500 530
----------
IDAHO -- 2.5%
City of Boise, Cash Flow
Management RB
4.500%, 02/01/00 500 507
----------
ILLINOIS -- 6.5%
Du Page, Water Commission GO
5.850%, 03/01/00 500 522
Illinois State Health Facilities
Authority RB, Loyola University
Health Systems, Series A MBIA
4.550%, 07/01/01 300 303
Illinois State GO
4.625%, 02/01/01 500 506
----------
1,331
----------
INDIANA -- 5.1%
Indiana State RB, Kokomo Center
School Building Corporation
AMBAC STAID
6.750%, 07/15/00 500 536
Indianapolis, Telecommunications
Improvements RB, Series C
6.400%, 02/01/99 500 519
----------
1,055
----------
IOWA -- 2.5%
Sioux City, Public Improvements GO
4.800%, 06/01/00 500 510
----------
KENTUCKY -- 2.5%
Kenton County, Parking Facility
Improvements RB
4.700%, 12/01/00 500 507
----------
MARYLAND -- 2.5%
Prince George County, Public
Improvements GO, Series A MBIA
5.100%, 03/01/00 500 513
----------
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
MINNESOTA -- 5.0%
Owatonna, Independent
School District #761 GO
5.100%, 02/01/00 $500 $ 513
Saint Paul, Capital Improvements
GO, Series B
4.750%, 03/01/99 500 506
----------
1,019
----------
MISSISSIPPI -- 1.8%
Mississippi State, Higher
Education RB, Series B
6.100%, 07/01/01 350 364
----------
NEVADA -- 6.6%
Nevada State GO
6.500%, 09/01/00 275 294
Washoe County, Airport
Authority RB MBIA
5.150%, 07/01/99 500 509
Washoe County, Public
Improvements GO MBIA
8.250%, 06/01/00 500 553
----------
1,356
----------
NEW YORK -- 5.0%
Babylon GO AMBAC
4.875%, 01/15/01 500 510
North Hempstead GO,
Series A FGIC
5.500%, 02/15/01 500 523
----------
1,033
----------
NORTH DAKOTA -- 2.5%
Fargo RB AMBAC
5.000%, 01/01/01 500 513
----------
OHIO -- 5.3%
Chagrin Falls, School District GO
4.400%, 12/01/00 100 100
Cincinnati, City School District
Tax Anticipation Note,
Series C AMBAC
5.250%, 12/01/00 500 513
Ohio State School District GO
5.250%, 04/15/01 455 471
----------
1,084
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
OKLAHOMA -- 2.5%
Grand River, Grand River
Dam Authority RB
5.000%, 06/01/99 $500 $ 508
----------
PENNSYLVANIA -- 2.8%
Allegheny County, Pennsylvania
Allegheny County Hospital
Development Authority Saint Francis
Medical Center Project RB
4.800%, 05/15/00 395 399
Pennsylvania State GO
9.000%, 10/01/00 180 183
----------
582
----------
SOUTH CAROLINA -- 2.5%
Pickens County, School District
GO FGIC
5.250%, 05/01/00 500 515
----------
TENNESSEE -- 2.5%
Williamson County, Public
Improvements GO
4.600%, 10/01/00 500 509
----------
TEXAS -- 8.4%
Amarillo, Independent School
District GO PSFG
7.000%, 02/01/00 500 534
Dallas, Housing RB, Corporate
Capital Projects
7.450%, 08/01/00 140 149
Fort Worth GO
4.900%, 03/01/99 500 508
North East Independent School
District GO PSFG
7.000%, 02/01/00 500 534
----------
1,725
----------
UTAH -- 2.5%
Utah State, Water Finance Agency
RB, Series A MBIA
5.000%, 10/01/00 500 513
----------
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
VIRGINIA -- 2.5%
Richmond, Public Improvements
GO, Series A STAID
4.700%, 01/15/00 $500 $ 508
----------
WASHINGTON -- 6.5%
King County, Public Hospital
District # 002 GO
5.400%, 12/01/00 300 311
Seattle, Municipal Light
and Power RB
4.700%, 05/01/01 500 508
Tacoma GO, Series A
5.300%, 07/01/99 500 512
----------
1,331
----------
WISCONSIN -- 2.5%
Brookfield, Sewer
Improvements GO
5.250%, 12/01/00 500 518
----------
TOTAL MUNICIPAL BONDS
(Cost $19,768) 19,903
----------
CASH EQUIVALENT -- 1.9%
SEI Institutional Tax
Free Portfolio 396 396
----------
TOTAL CASH EQUIVALENT
(Cost $396) 396
----------
TOTAL INVESTMENTS -- 98.9%
(Cost $20,164) 20,299
----------
OTHER ASSETS AND LIABILITIES, NET -- 1.1% 225
----------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Short Term Municipal Bond Fund (concluded)
- ---------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class (unlimited
authhorization -- no par value) based on
2,008,201 outstanding shares of
beneficial interest $20,013
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value) based on
23,652 outstanding shares of
beneficial interest 242
Undistributed net investment income 16
Accumulated net realized gain on investments 118
Net unrealized appreciation on investments 135
-------
TOTAL NET ASSETS-- 100.0% $20,524
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL CLASS $10.10
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- RETAIL CLASS $10.12
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS ($10.12/98.5%) $10.27
=======
- -------------------------------------------------------
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC -- FEDERAL GUARANTY INSURANCE COMPANY
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
PSFG -- PERMANENT SCHOOL FUND GUARANTEED
RB -- REVENUE BOND
STAID -- STATE AID WITHHOLDING
- ---------------------------------------------------------
IDAHO MUNICIPAL BOND FUND
- ---------------------------------------------------------
[PIE CHART OMITTED]
Revenue Bonds 24.8%
Cash Equivalents 1.4%
General Obligations 73.8%
% OF TOTAL PORTFOLIO INVESTMENTS
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
MUNICIPAL BONDS -- 98.5%
IDAHO -- 94.9%
Ada & Canyon Counties, Joint School
District #2, Meridian GO
5.350%, 07/30/09 $750 $ 792
5.500%, 07/30/10 205 217
5.500%, 07/30/11 270 285
5.500%, 07/30/14 500 521
5.625%, 07/30/16 500 524
Ammon, Urban Renewal Agency RB,
Series B
6.000%, 08/01/14 125 129
Bannock & Caribou Counties, Joint
School District #21, Marsh VY GO
5.300%, 09/01/04 100 104
Bannock County GO
5.100%, 09/01/01 100 103
Bingham County, School District
#055, Blackfoot GO MBIA
5.650%, 08/01/15 560 588
Boise City, Independent School
District #1 GO AMBAC
5.400%, 07/30/14 500 515
Boise City RB
5.100%, 02/01/11 500 511
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
IDAHO (CONTINUED)
Boise State University RB FSA
4.750%, 04/01/04 $ 450 $ 459
Boise, Independent School
District GO
5.375%, 07/30/10 250 261
5.500%, 07/30/16 1,250 1,293
Boise State University Student
Housing System RB
5.250%, 04/01/17 160 162
Bonneville & Bingham Counties,
School District #93 GO FGIC
5.750%, 07/30/07 500 549
5.500%, 07/30/10 850 901
Bonneville County, Jail
Bonds GO FSA
5.500%, 08/01/16 590 606
Bonneville County, School
District #91, Idaho Falls GO
5.200%, 08/01/05 500 515
5.450%, 08/01/08 500 516
5.500%, 08/01/09 300 309
Canyon County, School
District #131,
Nampa GO MBIA
5.500%, 07/30/11 500 518
5.500%, 07/30/12 500 515
Canyon County, School District
#132 GO FSA
5.400%, 07/30/11 200 208
Canyon County, School District
#132 GO CGIC
5.400%, 07/30/12 400 413
Canyon County, School District
#132 GO FSA
5.450%, 07/30/14 470 486
Canyon County, School District
#132 GO CGIC
5.450%, 07/30/15 900 930
Canyon County, School
District #134,
Middleton GO FGIC
4.500%, 07/31/11 500 485
Canyon County, School
District #139 GO
5.100%, 08/01/09 500 510
5.200%, 08/01/10 1,000 1,020
5.200%, 08/01/11 320 326
5.200%, 08/01/12 110 112
5.000%, 08/01/13 425 427
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
Caribou & Bonneville Counties,
School District #150 GO
5.500%, 09/01/06 $ 200 $ 206
Cassia & Twin Falls Counties,
Joint School District #151
GO FGIC
5.375%, 08/01/14 1,000 1,025
5.375%, 08/01/16 1,000 1,022
City of Sun Valley GO
5.050%, 08/01/08 195 201
Coeur D'Alene GO AMBAC
5.350%, 03/01/11 240 247
Elmore County, School
District #193, Mountain
Home GO AMBAC
5.000%, 07/31/10 400 406
4.500%, 07/31/12 250 240
Fremont & Madison Counties,
School District #215, St.
Anthony GO CGIC
5.600%, 08/01/14 125 129
5.600%, 08/01/15 765 790
Gooding & Lincoln Counties,
Joint School District
#231 GO CGIC
6.300%, 02/01/15 535 589
Gooding & Lincoln Counties,
Joint School District
#231 GO FSA
6.250%, 02/01/12 130 143
Gooding County, School
District #232,
Wendell GO AMBAC
5.000%, 08/01/11 100 101
Idaho State Building Authority
RB MBIA
5.600%, 09/01/05 100 107
5.800%, 09/01/05 100 107
Idaho State Health Facility
Authority RB, Magic Valley
Regional Medical Center
5.625%, 12/01/13 200 207
Idaho State Health Facility
Authority RB, Magic Valley
Regional Medical Center AMBAC
5.200%, 12/01/04 250 263
Idaho State Health Facility
Authority RB, St. Alphonsus
Regional Medical Center
6.100%, 12/01/07 100 109
Idaho State Health Facility
Authority RB, St. Joseph's
Regional Medical Center MBIA
5.000%, 07/01/07 500 521
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Idaho Municipal Bond Fund (concluded)
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
IDAHO (CONTINUED)
Idaho State Housing and Finance
Association RB AMT
6.150%, 01/01/28 $1,000 $1,039
Idaho State University
Student Fee RB
5.650%, 04/01/22 500 519
Jefferson County,
School District
#253 GO MBIA
5.500%, 08/01/15 240 249
Jerome County, School District
#262 GO AMBAC
5.150%, 08/01/04 200 205
Jerome, Lincoln & Gooding
Counties GO
5.000%, 07/31/12 290 290
Kootenai County, Consolidated
Free Library District GO CGIC
5.000%, 08/01/06 160 167
Kootenai County, School
District #272 GO
4.700%, 08/01/06 400 404
Latah & Clearwater Counties,
School District #286 GO AMBAC
5.500%, 02/01/07 200 209
5.600%, 02/01/08 200 209
Lewiston Orchards, District
Water RB
5.000%, 06/01/08 110 112
Madison County GO CGIC
5.400%, 08/01/15 420 434
Madison County, School
District #321,
Rexburg GO AMBAC
5.300%, 02/01/03 200 208
McCall, Water RB, Parity
Lien FSA
5.750%, 03/01/07 215 236
5.850%, 03/01/16 500 531
Meridian, Idaho GO FSA
5.000%, 08/01/15 290 291
Minidoka & Jerome Counties,
School District #331 GO MBIA
5.000%, 02/01/01 100 103
Nez Perce County, Pollution
Control RB, Potlatch
Corporation Project
6.000%, 10/01/24 1,000 1,045
Oneida County, School District
#351 GO MBIA
5.000%, 07/31/15 375 377
Payette & Washington Counties,
Joint School District #371
GO AMBAC
4.900%, 10/01/03 500 518
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
Payette County, School
District #372 GO AG
6.750%, 07/31/09 $ 100 $ 111
Post Falls, Sewer RB AMBAC
4.900%, 08/01/05 200 206
Southern Idaho Regional Solid
Waste Project COP
5.450%, 11/01/13 500 517
Teton County, School
District #401 GO
5.300%, 08/01/07 225 239
Teton County, School District
#401 GO FSA
5.500%, 08/01/10 400 422
Twin Falls & Cassia Counties,
Joint School District #418
GO MBIA
5.450%, 08/01/15 145 150
Twin Falls County, School District
#413 GO, Class A AMBAC
5.250%, 07/30/09 200 207
5.250%, 07/30/13 400 411
5.250%, 07/30/14 420 432
Twin Falls County, School
District #415 GO AG
5.500%, 08/01/15 195 201
University of Idaho, Refunding &
Improvements Facility RB
5.100%, 04/01/07 200 208
University of Idaho, Refunding
Student Building Fee RB
5.350%, 04/01/10 250 257
University of Idaho, Student Fee
Telecommunications RB FSA
5.850%, 04/01/11 500 540
Washington County, School
District #431 GO AMBAC
5.300%, 08/01/04 200 210
5.400%, 08/01/05 100 105
5.500%, 08/01/06 200 211
----------
33,796
----------
PUERTO RICO -- 3.6%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 250 259
Puerto Rico Municipal Finance
Agency RB, Series A
5.250%, 07/01/10 1,000 1,035
----------
1,294
----------
TOTAL MUNICIPAL BONDS
(Cost $33,634) 35,090
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------
CASH EQUIVALENT -- 1.4%
SEI Institutional Tax
Free Portfolio $487 $ 487
-------
TOTAL CASH EQUIVALENT
(Cost $488) 487
-------
TOTAL INVESTMENTS -- 99.9%
(Cost $34,122) 35,577
-------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% 30
-------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par value)
based on 2,398,475 outstanding shares
of beneficial interest 24,478
Portfolio Shares of Retail Class (unlimited
authorization -- no par value) based
on 915,991 outstanding shares of
beneficial interest 9,580
Accumulated net realized gain on investments 94
Net unrealized appreciation on investments 1,455
-------
TOTAL NET ASSETS-- 100.0% $35,607
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL CLASS $10.73
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- RETAIL CLASS $10.77
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS ($10.77/96%) $11.22
=======
- -------------------------------------------------------
ASSET G -- ASSET GUARANTY
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
CGIC -- CAPITAL GUARANTY INSURANCE CORPORATION
COP -- CERTIFICATE OF PARTICIPATION
FGIC -- FEDERAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
- ----------------------------------------------------------
MUNICIPAL BOND FUND
- ----------------------------------------------------------
[PIE CHART OMITTED]
Revenue Bonds 36.8%
Cash Equivalents 4.6%
General Obligations 58.6%
% OF TOTAL PORTFOLIO INVESTMENTS
- ----------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS -- 97.5%
ALABAMA -- 3.0%
Birmingham GO
5.700%, 06/01/15 $1,000 $ 1,036
Huntsville GO
5.500%, 02/01/11 1,000 1,039
----------
2,075
----------
ALASKA -- 2.7%
Alaska State Veterans Housing
RB, 1st Series
5.400%, 12/01/23 470 455
Alaska State Student Loan RB,
Series A
5.750%, 07/01/14 400 410
Valdez, Marine Term RB,
Pipeline Project, Series B
5.500%, 10/01/28 1,000 996
----------
1,861
----------
ARIZONA -- 2.2%
Maricopa County, Elementary School
District #068, Alhambra GO AMBAC
5.100%, 07/01/11 500 506
Tucson GO, Series 1994-B
5.750%, 07/01/19 1,000 1,041
----------
1,547
----------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
25
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Municipal Bond Fund (continued)
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
ARKANSAS -- 0.7%
Independence County,
Pollution Control RB
6.250%, 01/01/21 $ 500 $ 526
----------
CALIFORNIA -- 2.7%
California State, Housing Finance
Agency Home Mortgage RB,
Series I AMT MBIA
5.750%, 02/01/29 250 253
California State, Public
Works Board Lease RB,
Series B MBIA
5.625%, 11/01/19 1,000 1,032
Northern California Power
Agency RB AMBAC
7.500%, 07/01/23 218 281
San Francisco, Airport
Improvement Corporation RB,
United Airlines, Series 1974A
8.000%, 07/01/13 270 328
----------
1,894
----------
COLORADO -- 3.1%
Colorado Springs RB, Series A
6.500%, 11/15/15 1,000 1,087
Colorado State Board of
Agriculture RB, University of
South Carolina Sports
8.250%, 05/01/03 100 106
Denver, City and County
Multi-Family Housing RB,
Boston Lofts Project,
Series A AMT
5.750%, 10/01/27 500 500
Summit County, Sports
Facilities RB, Keystone
Resorts Project
7.375%, 09/01/10 420 496
----------
2,189
----------
CONNECTICUT -- 0.7%
Connecticut State, Housing
and Finance Authority RB,
Subseries B-2 AMT
5.850%, 11/15/28 505 513
----------
FLORIDA -- 3.0%
Boynton Beach, Multi-Family
Housing RB, Clipper
Cove Apartments
6.450%, 01/01/27 505 543
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
Florida State Housing Finance
Agency RB, Glen Oaks
Apartment Project AMT
5.900%, 02/01/30 $ 500 $ 508
Jacksonville, Electric Authority
Special Obligation RB
5.375%, 10/01/10 1,000 1,024
----------
2,075
----------
GEORGIA -- 1.4%
Georgia State, Housing and
Finance Authority Single RB,
Subseries B-2 AMT
5.850%, 12/01/28 1,000 1,020
----------
HAWAII -- 2.6%
Hawaii State Housing Finance &
Development Authority RB,
Series A AMT
5.750%, 07/01/30 500 501
Hawaii State GO, Series CN FGIC
5.500%, 03/01/16 1,000 1,026
Hawaii State Department of
Budget & Finance RB, Wahiawa
General Hospital Project
7.500%, 07/01/12 250 275
----------
1,802
----------
IDAHO -- 0.7%
Nez Perce County, Pollution
Control RB, Potlatch
Corporation Project
6.000%, 10/01/24 450 470
----------
ILLINOIS -- 6.0%
Chicago, Multi-Family Housing RB,
Orleans Project FHA
6.125%, 06/01/39 500 518
Cook County RB, Series B FGIC
6.000%, 11/15/17 200 210
Illinois State Health Facilities
Authority RB, Holy Cross
Hospital Project
6.250%, 03/01/04 300 316
Kane, Cook and Du Page Counties,
School District #46 GO FSA
5.550%, 01/01/11 1,000 1,046
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
ILLINOIS (CONTINUED)
McHenry County, Community
Unit School District #200 GO,
Series A FSA
5.850%, 01/01/16 $1,000 $ 1,049
Rockford, Faust Landmark
Apartments RB, Series A MBIA
6.750%, 01/01/18 1,000 1,085
----------
4,224
----------
INDIANA -- 3.6%
Hammod, Multi-School Building
Corporation RB
6.125%, 07/15/19 720 767
Indiana Bond Bank, Common
School Fund RB AMBAC
5.500%, 08/01/11 1,000 1,030
Indiana University RB,
Series H
6.600%, 08/01/01 550 601
Petersburg, Pollution Control RB,
Indianapolis Power & Light
6.625%, 12/01/24 105 117
----------
2,515
----------
IOWA -- 1.5%
Iowa City, Sewer RB MBIA
5.750%, 07/01/21 1,000 1,030
----------
KANSAS -- 1.5%
Garnett, Combined Utility RB MBIA
5.750%, 10/01/07 1,000 1,058
----------
MASSACHUSETTS -- 1.5%
Worcester, Municipal Purpose
Loans GO, Series C MBIA
5.750%, 10/01/14 1,000 1,051
----------
MICHIGAN -- 4.6%
Kalamazoo, Downtown
Development GO
5.500%, 04/01/13 1,000 1,031
Lake Orion, Community School
District GO AMBAC
5.800%, 05/01/15 1,000 1,049
Michigan State Housing
Development Authority RB FHA
5.700%, 07/01/06 115 115
Ypsilanti, School District
GO FGIC
5.750%, 05/01/20 1,000 1,034
----------
3,229
----------
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
MINNESOTA -- 1.5%
Osseo, Independent School
District #279 GO
5.400%, 02/01/10 $1,000 $ 1,025
----------
NEVADA -- 1.9%
Nevada State Housing Division RB,
Saratoga Palms FNMA
6.250%, 10/01/16 280 292
Nevada State Municipal Bond Bank
GO, Project 52, Series A
6.000%, 05/15/24 1,000 1,070
----------
1,362
----------
NEW JERSEY -- 1.5%
New Jersey State Transportation
System GO, Series A MBIA
5.500%, 06/15/12 1,000 1,038
----------
NEW MEXICO -- 1.5%
Bernalillo County, Gross Receipts
Tax RB, Series A
5.750%, 04/01/21 1,000 1,029
----------
NEW YORK -- 5.9%
Brookhaven GO FGIC
5.500%, 10/01/13 1,000 1,043
New York City GO, Series F
5.875%, 08/01/24 1,000 1,035
New York State Dorm Authority
Nursing Home RB,
Menorah Campus FHA
6.100%, 02/01/37 1,000 1,043
United Nations Development
Corporation RB, Series B
5.600%, 07/01/26 1,000 999
----------
4,120
----------
NORTH CAROLINA -- 1.8%
North Carolina State Housing Finance
Agency RB, Series RR AMT
5.850%, 09/01/28 1,000 1,015
North Carolina State Municipal
Power Agency RB, Catawba
Electric, Series B
6.000%, 01/01/20 250 253
----------
1,268
----------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
27
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Municipal Bond Fund (continued)
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
NORTH DAKOTA -- 2.8%
Fargo, Multifamily Housing RB
7.125%, 02/01/26 $ 255 $ 256
North Dakota State
Housing Finance
Agency RB, Series B
5.850%, 07/01/28 1,000 1,015
North Dakota State
Housing Finance
Agency RB, Series C AMT
5.950%, 07/01/17 280 290
6.100%, 07/01/28 370 377
----------
1,938
----------
OHIO -- 2.7%
Greater Cleveland Regional
Transit Authority GO FGIC
5.650%, 12/01/16 1,000 1,041
Johnstown, Waterworks
System RB
6.000%, 12/01/17 250 255
Oak Hills, Local School
District GO, Series A
5.700%, 12/01/25 600 608
----------
1,904
----------
OREGON -- 4.9%
Jackson County, School
District #549C GO
5.375%, 06/01/10 1,000 1,030
Lincoln County, School
District GO FGIC
5.600%, 06/15/10 1,000 1,079
Marion County, School District
#103C GO, Woodburn,
Series A FGIC
5.650%, 11/01/15 1,000 1,044
Portland, Arena Gas Tax RB FSA
3.120%, 06/01/18 (A) 1,000 291
----------
3,444
----------
PENNSYLVANIA -- 6.6%
Allentown, Area Hospital
Authority RB, Sacred Heart
Hospital of Allentown,
Series A
6.750%, 11/15/14 500 533
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
Delaware County, Crozer
Hospital, Chester RB
6.000%, 12/15/20 $ 500 $ 511
Delaware County, Authority of
Health Care RB, Mercy Health
Corporation, Series B
6.000%, 11/15/07 500 526
Pennsylvania State, Housing
Finance Agency RB, Series 39B
6.875%, 10/01/24 750 807
Pennsylvania State, Housing
Finance Agency RB, Series
59A AMT
5.800%, 10/01/29 1,250 1,263
Philadelphia, Hospital
Facilities Authority
RB, Friends Hospital
6.200%, 05/01/11 500 508
South Fork, Municipal
Hospital RB,
Lee Hospital Project,
Series A
5.500%, 07/01/11 500 501
----------
4,649
----------
PUERTO RICO -- 1.5%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 1,000 1,036
----------
RHODE ISLAND -- 1.5%
Rhode Island State Housing &
Mortgage Finance Corporation RB,
Homeownership, Series 23 AMT
5.950%, 04/01/29 1,000 1,019
----------
SOUTH CAROLINA -- 1.5%
University of South Carolina
RB MBIA
5.750%, 06/01/26 1,000 1,039
----------
TENNESSEE -- 1.5%
Shelby County GO, Series A
5.600%, 04/01/12 1,000 1,050
----------
TEXAS -- 3.9%
Austin, Utility Systems
RB MBIA
5.750%, 11/15/14 1,000 1,029
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
TEXAS (CONTINUED)
Harris County, Industrial
Development Corporation RB,
Gatx Terminals Project
6.950%, 02/01/22 $ 500 $ 547
Pasadena GO FGIC
5.600%, 02/15/05 1,000 1,063
Victoria County, Hospital RB,
Citizens Medical Center AMBAC
6.250%, 01/01/16 100 108
----------
2,747
----------
UTAH -- 2.7%
Provo City, Housing Authority RB,
Lookout Pointe Apartments GNMA
5.800%, 07/20/22 500 512
Utah State, Housing Finance
Agency RB FHA
6.800%, 01/01/12 365 387
Weber County, Municipal Building
Authority RB MBIA
5.750%, 12/15/19 1,000 1,031
----------
1,930
----------
VERMONT -- 2.3%
Vermont State Housing Finance
Agency RB, Series 9 AMT MBIA
6.000%, 05/01/37 595 605
Vermont State Municipal Bond
Bank RB AMBAC
5.625%, 12/01/15 1,000 1,035
----------
1,640
----------
VIRGINIA -- 1.4%
Fairfax County, Water Authority RB
5.750%, 04/01/29 1,000 1,015
----------
WASHINGTON -- 3.9%
Seattle GO
5.650%, 01/01/20 1,000 1,025
Snohomish County, Public
Utilities RB, District #001
Generation Systems, Series 86A
5.000%, 01/01/20 140 137
- ---------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------
Snohomish County, School District
#015, Edmonds GO
5.750%, 12/01/13 $1,000 $ 1,045
Washington State, Pilchuck
Development Public Corporation
RB, Tramco Project
6.000%, 08/01/23 510 522
----------
2,729
----------
WISCONSIN -- 2.5%
Wisconsin State Housing &
Economic Development RB,
Homeownership, Series A
6.000%, 09/01/15 550 567
Wisconsin State Health & Education
Facilities RB, Franciscan
Skemp Medical Center
6.125%, 11/15/15 1,000 1,066
Wisconsin State GO, Series D AMT
5.800%, 05/01/20 145 149
----------
1,782
----------
WYOMING -- 2.2%
Wyoming State Community
Development Authority RB,
Series 4 AMT
5.850%, 06/01/28 500 506
Wyoming State Community
Development Authority RB,
Series A FHA
6.000%, 06/01/23 1,000 1,026
----------
1,532
----------
TOTAL MUNICIPAL BONDS
(Cost $66,590) 68,375
----------
CASH EQUIVALENTS -- 4.7%
SEI Institutional Tax
Free Portfolio 2,644 2,644
SEI Tax Exempt Trust Portfolio 639 640
----------
TOTAL CASH EQUIVALENTS
(Cost $3,283) 3,284
----------
TOTAL INVESTMENTS -- 102.2%
(Cost $69,873) 71,659
----------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
29
<PAGE>
JULY 31, 1997 (UNAUDITED)
Statement of Net Assets
Municipal Bond Fund (concluded)
- --------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- (2.2%) $(1,570)
-------
NET ASSETS:
Portfolio Shares of Institutional Class (unlimited
authorization -- no par value) based on
5,830,339 outstanding shares of
beneficial interest 58,393
Portfolio Shares of Retail Class (unlimited
authorization -- no par value) based on
943,329 outstanding shares of
beneficial interest 9,441
Undistributed net investment income 1
Accumulated net realized gain on investments 468
Net unrealized appreciation on investments 1,786
-------
TOTAL NET ASSETS -- 100.0% $70,089
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.35
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS $10.34
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS ($10.34/96%) $10.77
=======
- -------------------------------------------------------
(A) ZERO COUPON SECURITY
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
FGIC -- FEDERAL GUARANTY INSURANCE COMPANY
FHA -- FEDERAL HOUSING ADMINISTRATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
<PAGE>
FOR THE SIX MONTH PERIOD ENDED JULY 31, 1997 THE ACHIEVEMENT FUNDS TRUST
Statements of Operations (000)
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT
SHORT TERM IDAHO
INTERMEDIATE TERM MUNICIPAL MUNICIPAL MUNICIPAL
EQUITY BALANCED TERM BOND BOND BOND BOND BOND
FUND FUND FUND FUND FUND FUND FUND
====== ======== ============ ==== ========= ========= ==========
INCOME:
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend Income $ 1,416 $ 828 $ -- $ -- $ -- $ -- $ --
Interest Income 136 2,005 4,776 2,000 479 895 1,743
------- ------- ------ ------ ---- ------ ------
Total Income 1,552 2,833 4,776 2,000 479 895 1,743
------- ------- ------ ------ ---- ------ ------
EXPENSES:
Administrative Fees 185 161 140 61 50 50 64
Less: Waiver of Administrative Fees -- -- -- -- (29) (16) --
Investment Advisory Fees 686 595 419 184 63 102 192
Less: Waiver of Investment
Advisory Fees (119) (101) (105) (62) (45) (49) (95)
Custodian/Transfer Agent Fees 29 27 27 24 22 23 25
Professional Fees 27 18 20 8 3 5 17
Pricing Fees 2 2 2 1 2 3 3
Registration & Filing Fees 3 1 6 6 10 6 19
Printing Fees 13 11 9 4 1 2 7
Trustee Fees 4 4 3 2 1 1 2
Distribution Fees (1) 6 4 3 -- -- 10 11
Interest Expense 3 -- -- -- -- -- --
Amortization of Deferred
Organizational Costs 4 4 2 3 1 1 6
------- ------- ------ ------ ---- ------ ------
Total Expenses 843 726 526 231 79 138 251
------- ------- ------ ------ ---- ------ ------
Net Income 709 2,107 4,250 1,769 400 757 1,492
------- ------- ------ ------ ---- ------ ------
Net Realized Gain (Loss) on
Investments 8,550 5,239 (254) (148) 47 15 458
Net Change in Unrealized
Appreciation/(Depreciation)
of Investments 28,634 16,199 2,054 206 (9) 1,085 1,772
------- ------- ------ ------ ---- ------ ------
Net Realized and Unrealized Gain
on Investments 37,184 21,438 1,800 58 38 1,100 2,230
------- ------- ------ ------ ---- ------ ------
Increase in Net Assets Resulting
from Operations $37,893 $23,545 $6,050 $1,827 $438 $1,857 $3,722
======= ======= ====== ====== ==== ====== ======
<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>
THE ACHIEVEMENT FUNDS TRUST
Statements of Changes in Net Assets (000)
FOR THE SIX MONTH PERIOD ENDED JULY 31, 1997 (UNAUDITED) AND THE YEAR ENDED
JANUARY 31, 1997.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY BALANCED INTERMEDIATE
FUND FUND TERM BOND FUND
================= ================== =================
2/1/97 2/1/96 2/1/97 2/1/96 2/1/97 2/1/96
TO TO TO TO TO TO
7/31/97 1/31/97 7/31/97 1/31/97 7/31/97 1/31/97
------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 709 $ 1,328 $ 2,107 $ 4,368 $ 4,250 $ 7,450
Net Realized Gain (Loss) on Investments 8,550 20,025 5,239 9,456 (254) (558)
Net Change in Unrealized
Appreciation (Depreciation) of Investments 28,634 9,415 16,199 3,898 2,054 (4,069)
-------- -------- -------- -------- -------- --------
Increase in Net Assets
Resulting From Operations 37,893 30,768 23,545 17,722 6,050 2,823
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (636) (1,384) (1,972) (4,369) (4,178) (7,349)
Retail Class A (11) (20) (33) (64) (72) (101)
Capital Gains:
Institutional Class -- (11,493) -- (9,727) -- --
Retail Class A -- (261) -- (166) -- --
-------- -------- -------- -------- -------- --------
Total Distributions (647) (13,158) (2,005) (14,326) (4,250) (7,450)
-------- -------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 12,088 30,191 6,787 14,417 21,816 42,280
Reinvestment of Cash Distributions 178 3,338 1,971 14,012 769 1,500
Cost of Shares Redeemed (21,480) (24,484) (10,607) (22,812) (12,846) (19,835)
-------- -------- -------- -------- -------- --------
Total Institutional Class Transactions (9,214) 9,045 (1,849) 5,617 9,739 23,945
-------- -------- -------- -------- -------- --------
Retail Class A:
Proceeds from Shares Issued 2,150 2,796 269 1,788 80 2,819
Reinvestment of Cash Distributions 10 254 33 225 67 82
Cost of Shares Redeemed (1,487) (1,098) (261) (857) (601) (1,114)
-------- -------- -------- -------- -------- --------
Total Retail Class A Transactions 673 1,952 41 1,156 (454) 1,787
-------- -------- -------- -------- -------- --------
Net Increase (Decrease) in Net
Assets from Share Transactions (8,541) 10,997 (1,808) 6,773 9,285 25,732
-------- -------- -------- -------- -------- --------
Total Increase (Decrease) in Net Assets 28,705 28,607 19,732 10,169 11,085 21,105
NET ASSETS:
Beginning of Period 181,333 152,726 159,190 149,021 137,375 116,270
-------- -------- -------- -------- -------- --------
End of Period $210,038 $181,333 $178,922 $159,190 $148,460 $137,375
======== ======== ======== ======== ======== ========
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 816 2,308 548 1,240 2,112 4,075
Shares Issued in Lieu of Cash Distributions 12 253 163 1,201 74 145
Shares Redeemed (1,442) (1,871) (861) (1,931) (1,246) (1,919)
-------- -------- -------- -------- -------- --------
Total Institutional Class Share Transactions (614) 690 (150) 510 940 2,301
-------- -------- -------- -------- -------- --------
Retail Class A
Shares Issued 143 216 21 152 8 273
Shares Issued in Lieu of Cash Distributions 1 19 3 19 6 8
Shares Redeemed (100) (83) (21) (73) (58) (107)
-------- -------- -------- -------- -------- --------
Total Retail Class A Share Transactions 44 152 3 98 (44) 174
-------- -------- -------- -------- -------- --------
Net Increase (Decrease) in Share Transactions (570) 842 (147) 608 896 2,475
======== ======== ======== ======== ======== ========
SHORT TERM SHORT TERM IDAHO
BOND FUND MUNICIPAL BOND FUND MUNICIPAL BOND
================== =================== ====================
2/1/97 2/1/96 2/1/97 2/1/96 2/1/97 2/1/96
TO TO TO TO TO TO
7/31/97 1/31/97 7/31/97 1/31/97 7/31/97 1/31/97
------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 1,769 $ 4,266 $ 400 $ 1,034 $ 757 $ 1,303
Net Realized Gain (Loss) on Investments (148) (40) 47 130 15 151
Net Change in Unrealized
Appreciation (Depreciation) of Investments 206 (1,241) (9) (441) 1,085 (1,032)
-------- -------- ------- ------- ------- -------
Increase in Net Assets
Resulting From Operations 1,827 2,985 438 723 1,857 422
-------- -------- ------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (1,761) (4,239) (397) (1,031) (574) (1,190)
Retail Class A (8) (27) (4) (8) (183) (119)
Capital Gains:
Institutional Class -- -- -- (152) -- (158)
Retail Class A -- -- -- (2) -- (17)
-------- -------- ------- ------- ------- -------
Total Distributions (1,769) (4,266) (401) (1,193) (757) (1,484)
-------- -------- ------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 7,433 23,170 1,488 2,746 2,622 7,141
Reinvestment of Cash Distributions 573 1,276 4 3 14 15
Cost of Shares Redeemed (19,561) (33,471) (3,090) (11,740) (5,157) (4,601)
-------- -------- ------- ------- ------- -------
Total Institutional Class Transactions (11,555) (9,025) (1,598) (8,991) (2,521) 2,555
-------- -------- ------- ------- ------- -------
Retail Class A:
Proceeds from Shares Issued 30 789 46 53 4,618 4,886
Reinvestment of Cash Distributions 4 6 4 10 168 130
Cost of Shares Redeemed (342) (389) (39) (44) (720) (2,529)
-------- -------- ------- ------- ------- -------
Total Retail Class A Transactions (308) 406 11 19 4,066 2,487
-------- -------- ------- ------- ------- -------
Net Increase (Decrease) in Net
Assets from Share Transactions (11,863) (8,619) (1,587) (8,972) 1,545 5,042
-------- -------- ------- ------- ------- -------
Total Increase (Decrease) in Net Assets (11,805) (9,900) (1,550) (9,442) 2,645 3,980
NET ASSETS:
Beginning of Period 65,771 75,671 22,074 31,516 32,962 28,982
-------- -------- ------- ------- ------- -------
End of Period $ 53,966 $ 65,771 $20,524 $22,074 $35,607 $32,962
======== ======== ======= ======= ======= =======
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 745 2,307 148 272 252 683
Shares Issued in Lieu of Cash Distributions 57 127 1 -- 1 2
Shares Redeemed (1,960) (3,334) (308) (1,164) (496) (440)
-------- -------- ------- ------- ------- -------
Total Institutional Class Share Transactions (1,158) (900) (159) (892) (243) 245
-------- -------- ------- ------- ------- -------
Retail Class A
Shares Issued 3 78 5 5 444 467
Shares Issued in Lieu of Cash Distributions -- 1 -- 1 16 12
Shares Redeemed (34) (39) (4) (4) (69) (242)
-------- -------- ------- ------- ------- -------
Total Retail Class A Share Transactions (31) 40 1 2 391 237
-------- -------- ------- ------- ------- -------
Net Increase (Decrease) in Share Transactions (1,189) (860) (158) (890) 148 482
======== ======== ======= ======= ======= =======
MUNICIPAL
BOND FUND
===================
2/1/97 11/1/96(1)
TO TO
7/31/97 1/31/97
------- ----------
INVESTMENT ACTIVITIES:
<S> <C> <C>
Net Investment Income $ 1,492 $ 626
Net Realized Gain (Loss) on Investments 458 10
Net Change in Unrealized
Appreciation (Depreciation) of Investments 1,772 14
------- -------
Increase in Net Assets
Resulting From Operations 3,722 650
------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (1,294) (605)
Retail Class A (197) (21)
Capital Gains:
Institutional Class -- --
Retail Class A -- --
------- -------
Total Distributions (1,491) (626)
------- -------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 8,835 57,201
Reinvestment of Cash Distributions 1 --
Cost of Shares Redeemed (3,490) (4,154)
------- -------
Total Institutional Class Transactions 5,346 53,047
------- -------
Retail Class A:
Proceeds from Shares Issued 6,626 5,553
Reinvestment of Cash Distributions 197 21
Cost of Shares Redeemed (2,273) (683)
------- -------
Total Retail Class A Transactions 4,550 4,891
------- -------
Net Increase (Decrease) in Net
Assets from Share Transactions 9,896 57,938
------- -------
Total Increase (Decrease) in Net Assets 12,127 57,962
NET ASSETS:
Beginning of Period 57,962 --
------- -------
End of Period $70,089 $57,962
======= =======
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 882 5,709
Shares Issued in Lieu of Cash Distributions -- --
Shares Redeemed (348) (413)
------- -------
Total Institutional Class Share Transactions 534 5,296
------- -------
Retail Class A
Shares Issued 662 555
Shares Issued in Lieu of Cash Distributions 20 2
Shares Redeemed (228) (68)
------- -------
Total Retail Class A Share Transactions 454 489
------- -------
Net Increase (Decrease) in Share Transactions 988 5,785
======= =======
<FN>
(1) COMMENCED OPERATIONS ON NOVEMBER 1, 1996.
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.
32 & 33
<PAGE>
Financial Highlights
(UNAUDITED)
- -------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period or Year
<TABLE>
<CAPTION>
NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS, END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END TOTAL OF PERIOD
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000)
--------- ---------- ------------- ------------- -------------- ------------ ------- -----------
EQUITY FUND
===========
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C> <C> <C> <C>
July 31, 1997 $14.03 0.06 (0.05) -- 2.96 $17.00 21.61%* $204,314
For the years ended
January 31, 1997 $12.64 0.11 (0.11) (0.94) 2.33 $14.03 20.00% $177,234
January 31, 1996 $10.24 0.17 (0.17) (0.72) 3.12 $12.64 32.55% $150,957
For the period ended
January 31, 1995(1)** $10.00 0.01 -- -- 0.23 $10.24 2.40%* $ 97,052
RETAIL CLASS A:
For the six months ended
July 31, 1997 $14.04 0.04 (0.04) -- 2.97 $17.01 21.45%* $ 5,724
For the year ended
January 31, 1997 $12.65 0.08 (0.08) (0.94) 2.33 $14.04 19.72% $ 4,099
For the period ended
January 31, 1996(2)** $10.52 0.14 (0.15) (0.72) 2.86 $12.65 32.34%* $ 1,769
BALANCED FUND
=============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1997 $12.01 0.16 (0.15) -- 1.63 $13.65 15.10%* $175,614
For the years ended
January 31, 1997 $11.79 0.34 (0.35) (0.78) 1.01 $12.01 12.03% $156,315
January 31, 1996 $10.20 0.39 (0.39) (0.42) 2.01 $11.79 24.15% $147,357
For the period ended
January 31, 1995(1)** $10.00 0.04 -- -- 0.16 $10.20 2.00%* $112,896
RETAIL CLASS A:
For the six months ended
July 31, 1997 $12.00 0.15 (0.14) -- 1.63 $13.64 14.97%* $ 3,308
For the year ended
January 31, 1997 $11.78 0.31 (0.32) (0.78) 1.01 $12.00 11.81% $ 2,875
For the period ended
January 31, 1996(2)** $10.34 0.32 (0.31) (0.42) 1.85 $11.78 23.88%* $ 1,664
RATIO RATIO OF
OF EXPENSES NET INCOME
RATIO TO AVERAGE RATIO OF TO AVERAGE
OF EXPENSES NET ASSETS NET INCOME NET ASSETS PORTFOLIO AVERAGE
TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER COMMISSION
NET ASSETS WAIVERS) NET ASSETS WAIVERS) RATE RATE(5)
----------- ----------- ---------- ---------- --------- ----------
EQUITY FUND
===========
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C> <C>
July 31, 1997 0.90% 1.00% 0.77% 0.67% 18.44% $0.0604
For the years ended
January 31, 1997 0.90% 1.07% 0.81% 0.64% 97.14% $0.0603
January 31, 1996 0.90% 1.14% 1.43% 1.19% 103.85% n/a
For the period ended
January 31, 1995(1)** 0.90% 1.26% 1.22% 0.86% 6.03% n/a
RETAIL CLASS A:
For the six months ended
July 31, 1997 1.15% 1.25% 0.51% 0.41% 18.44% $0.0604
For the year ended
January 31, 1997 1.15% 1.31% 0.52% 0.36% 97.14% $0.0603
For the period ended
January 31, 1996(2)** 1.15% 1.37% 0.99% 0.77% 103.85% n/a
BALANCED FUND
=============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1997 0.90% 1.02% 2.62% 2.50% 15.36% $0.0600
For the years ended
January 31, 1997 0.90% 1.07% 2.90% 2.73% 68.11% $0.0601
January 31, 1996 0.90% 1.14% 3.48% 3.24% 59.74% n/a
For the period ended
January 31, 1995(1)** 0.90% 1.26% 3.61% 3.25% 1.70% n/a
RETAIL CLASS A:
For the six months ended
July 31, 1997 1.15% 1.27% 2.38% 2.26% 15.36% $0.0600
For the year ended
January 31, 1997 1.15% 1.32% 2.64% 2.47% 68.11% $0.0601
For the period ended
January 31, 1996(2)** 1.15% 1.38% 3.06% 2.83% 59.74% n/a
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
34
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS, END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END TOTAL OF PERIOD
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000)
--------- ---------- ------------- ------------- -------------- ------------ ------- -----------
INTERMEDIATE TERM
BOND FUND
=================
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C> <C> <C>
July 31, 1997 $10.37 0.31 (0.31) -- 0.13 $10.50 4.35%* $146,161
For the years ended
January 31, 1997 $10.79 0.62 (0.62) -- (0.42) $10.37 2.06% $134,645
January 31, 1996 $10.09 0.71 (0.70) -- 0.69 $10.79 13.62% $115,307
For the period ended
January 31, 1995(1)** $10.00 0.05 (0.06) -- 0.10 $10.09 1.54%* $ 65,633
RETAIL CLASS A:
For the six months ended
July 31, 1997 $10.40 0.30 (0.30) -- 0.13 $10.53 4.23%* $ 2,299
For the year ended
January 31, 1997 $10.82 0.60 (0.60) -- (0.42) $10.40 1.80% $ 2,730
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 six months ended
July 31, 1997 $10.01 0.28 (0.28) -- 0.01 $10.02 2.99%* $ 53,832
For the years ended
January 31, 1997 $10.18 0.60 (0.60) -- (0.17) $10.01 4.40% $ 65,328
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 six months ended
July 31, 1997 $10.00 0.27 (0.27) -- 0.02 $10.02 2.99%* $ 134
For the year ended
January 31, 1997 $10.18 0.57 (0.58) -- (0.17) $10.00 4.04% $ 443
For the period ended
January 31, 1996(2)** $10.03 0.53 (0.52) -- 0.14 $10.18 7.55%* $ 39
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
----------- ----------- ---------- ---------- ---------
INTERMEDIATE TERM
BOND FUND
=================
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C>
July 31, 1997 0.75% 0.87% 6.09% 5.97% 14.22%
For the years ended
January 31, 1997 0.75% 0.95% 6.02% 5.82% 21.23%
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 six months ended
July 31, 1997 1.00% 1.12% 5.84% 5.72% 14.22%
For the year ended
January 31, 1997 1.00% 1.18% 5.76% 5.58% 21.23%
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 six months ended
July 31, 1997 0.75% 0.95% 5.76% 5.56% 18.98%
For the years ended
January 31, 1997 0.75% 0.96% 6.00% 5.79% 40.80%
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 six months ended
July 31, 1997 1.00% 1.20% 5.52% 5.32% 18.98%
For the year ended
January 31, 1997 1.00% 1.20% 5.74% 5.54% 40.80%
For the period ended
January 31, 1996(2)** 1.00% 1.23% 5.75% 5.52% 83.64%
<FN>
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
** RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
+ RETURNS DO NOT REFLECT ANY SALES LOAD THAT MAY BE APPLICABLE.
(1) COMMENCED OPERATIONS ON DECEMBER 28, 1994.
(2) COMMENCED OPERATIONS ON MARCH 6, 1995.
(3) COMMENCED OPERATIONS ON NOVEMBER 1, 1996.
(4) COMMENCED OPERATIONS ON NOVEMBER 4, 1996.
(5) AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND
SALES DURING THE PERIOD. PRESENTATION OF THE RATE IS ONLY REQUIRED FOR
FISCAL YEARS BEGINNING AFTER SEPTEMBER 1, 1995.
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.
35
<PAGE>
Financial Highlights
(UNAUDITED)
- -------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period or Year
<TABLE>
<CAPTION>
NET
ASSET DISTRIBUTIONS 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+ (000)
--------- ---------- ------------- ------------- -------------- ------------ ------- -----------
SHORT TERM
MUNICIPAL
BOND FUND
==========
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C> <C> <C>
July 31, 1997 $10.03 0.19 (0.19) -- 0.02 $10.10 2.12%* $20,284
For the years ended
January 31, 1997 $10.23 0.39 (0.39) (0.07) (0.08) $10.08 3.03% $21,846
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 six months ended
July 31, 1997 $10.10 0.18 (0.18) -- 0.02 $10.12 1.98%* $ 240
For the year ended
January 31, 1997 $10.25 0.36 (0.36) (0.07) (0.08) $10.10 2.76% $ 228
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 six months ended
July 31, 1997 $10.41 0.23 (0.23) -- 0.32 $10.73 5.41%* $25,746
For the years ended
January 31, 1997 $10.80 0.46 (0.46) (0.06) (0.33) $10.41 1.31% $27,487
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 six months ended
July 31, 1997 $10.44 0.22 (0.22) -- 0.33 $10.77 5.38%* $ 9,861
For the year ended
January 31, 1997 $10.83 0.44 (0.44) (0.06) (0.33) $10.44 1.05% $ 5,475
For the period ended
January 31, 1996(2)** $10.21 0.41 (0.40) (0.12) 0.73 $10.83 12.60%* $ 3,109
MUNICIPAL
BOND FUND
=========
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1997 $10.02 0.23 (0.23) -- 0.33 $10.35 5.72%* $60,333
For the period ended
January 31, 1997(3)** $10.00 0.12 (0.12) -- 0.02 $10.02 1.34%* $53,067
RETAIL CLASS A:
For the six months ended
July 31, 1997 $10.01 0.23 (0.23) -- 0.33 $10.34 5.64%* $ 9,756
For the period ended
January 31, 1997(4)** $10.01 0.15 (0.15) -- -- $10.01 1.48%* $ 4,895
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
----------- ----------- ---------- ---------- ---------
SHORT TERM
MUNICIPAL
BOND FUND
==========
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C>
July 31, 1997 0.75% 1.31% 3.81% 3.25% 36.49%
For the years ended
January 31, 1997 0.75% 1.26% 3.79% 3.28% 41.11%
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 six months ended
July 31, 1997 1.00% 1.56% 3.56% 3.00% 36.49%
For the year ended
January 31, 1997 1.00% 1.51% 3.56% 3.05% 41.11%
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 six months ended
July 31, 1997 0.75% 1.14% 4.52% 4.13% 9.06%
For the years ended
January 31, 1997 0.75% 1.24% 4.40% 3.91% 29.13%
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 six months ended
July 31, 1997 1.00% 1.38% 4.28% 3.90% 9.06%
For the year ended
January 31, 1997 1.00% 1.47% 4.15% 3.68% 29.13%
For the period ended
January 31, 1996(2)** 1.00% 1.58% 4.18% 3.60% 58.94%
MUNICIPAL
BOND FUND
=========
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1997 0.75% 1.05% 4.69% 4.39% 49.69%
For the period ended
January 31, 1997(3)** 0.75% 1.07% 4.58% 4.26% 19.21%
RETAIL CLASS A:
For the six months ended
July 31, 1997 1.00% 1.30% 4.45% 4.15% 49.69%
For the period ended
January 31, 1997(4)** 1.00% 1.29% 4.35% 4.06% 19.21%
<FN>
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
** RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
+ RETURNS DO NOT REFLECT ANY SALES LOAD THAT MAY BE APPLICABLE.
(1) COMMENCED OPERATIONS ON DECEMBER 28, 1994.
(2) COMMENCED OPERATIONS ON MARCH 6, 1995.
(3) COMMENCED OPERATIONS ON NOVEMBER 1, 1996.
(4) COMMENCED OPERATIONS ON NOVEMBER 4, 1996.
(5) AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND
SALES DURING THE PERIOD. PRESENTATION OF THE RATE IS ONLY REQUIRED FOR
FISCAL YEARS BEGINNING AFTER SEPTEMBER 1, 1995.
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.
36
<PAGE>
JULY 31, 1997 (UNAUDITED) THE ACHIEVEMENT FUNDS TRUST
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,
which agreement was amended and restated on October 7, 1994 and further amended
on December 1, 1994.
The Trust is registered under the Investment Company Act of 1940, as
amended, as an open-end, management investment company. The Trust presently
consists of a series of seven funds (the "Funds") which includes the Equity Fund
and the Balanced Fund (the "Stock Funds") and the Intermediate Term Bond Fund,
the Short Term Bond Fund, the Short Term Municipal Bond Fund, the Idaho
Municipal Bond Fund and the Municipal Bond Fund (the "Bond Funds"). The Funds'
prospectus provides a description of each Fund's investment objective, policies
and strategies. The Trust is registered to offer two classes of shares,
Institutional and Retail Class A. The Trust's declaration of trust permits the
Board of Trustees to create additional funds in the future. The assets of each
Fund are segregated, and a shareholder's interest is limited to the Fund in
which shares are held.
2. SIGNIFICANT ACCOUNTING POLICIES
================================================================================
The following is a summary of significant accounting policies followed by
the Funds.
SECURITY VALUATION -- Investments in equity securities that are traded on a
national securities exchange (or reported on the NASDAQ national market system)
are stated at the last quoted sales price, if readily available for such equity
securities on each business day; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Option contracts
are valued at the last quoted bid price as quoted on the primary exchange or
board of trade which such option contracts are stated. Debt obligations
exceeding sixty days to maturity for which market quotations are readily
available are valued at the most recently quoted bid price. Debt obligations
with sixty days or less remaining until maturity may be valued at their
amortized cost. Restricted securities for which quotations are not readily
available are valued at fair value using methods 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, the Idaho Municipal Bond Fund and the 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.
(CONTINUED)
37
<PAGE>
JULY 31, 1997 (UNAUDITED)
Notes to Financial Statements (CONTINUED)
OPTIONS TRANSACTIONS -- In order to produce incremental earnings, protect
gains, and facilitate buying and selling of securities for investment purposes,
the Equity Fund and the Balanced Fund may write covered call options. A risk in
writing a call option is that the Fund gives up the opportunity of profit if the
market price of the underlying security increases. The Fund realizes a gain upon
the expiration of a written call option. When a written call option is closed
prior to expiration by being exercised, the proceeds of the sale are increased
by the amount of original premium received.
EXPENSES -- Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses of the Trust are prorated to the
Funds on the basis of relative net assets. Class specific expenses, such as
12b-1 fees, are borne by that class. Income, other expenses and accumulated
realized and unrealized gains and losses of a Fund are allocated to the
respective class on the basis of the relative net assets each day.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income are
declared and paid on a quarterly basis for the Equity Fund. The Balanced Fund
declares and pays its dividend on a monthly basis. The Bond Funds declare
dividends on a daily basis and pays them on the first business day of the
following month. Any net realized capital gains on sales of securities for a
Fund are distributed to its shareholders at least annually.
Income distributions and capital gain distributions are determined in
accordance with U.S. federal income tax regulations, which may differ from
generally accepted accounting principles. These book/tax differences are either
temporary or permanent in nature. To the extent these differences are permanent,
they are reclassified for book purposes. As of January 31, 1997, $36,646 and
$257,676 have been reclassified in the Equity Fund and the Balanced Fund,
respectively, from undistributed net investment income to accumulated net
realized gain. These reclassifications have no effect on net assets or net
assets per share.
FEDERAL INCOME TAXES -- It is the Trust's intention 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
38
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
daily net assets of the Bond Funds. Such fee is computed daily and paid monthly.
During the year ended July 31, 1997, the Adviser voluntarily waived a portion of
its fees in order to limit operating expenses.
The Trust and CoreStates Bank (the "Custodian") are parties to a custodial
agreement dated December 27, 1994, under which the Custodian holds cash,
securities and other assets of the Trust, as required by the Investment Company
Act of 1940. In its capacity as custodian to the Trust, the Custodian plays no
role in determining the investment policies of the Trust or which securities
are to be purchased or sold by the Funds.
4. ADMINISTRATIVE, TRANSFER AGENT AND DISTRIBUTION SERVICES
================================================================================
Pursuant to an administrative agreement dated December 27, 1994, SEI Fund
Resources ("SFR") acts as the Trust's Administrator. Under the terms of such an
agreement, SFR is entitled to receive an annual fee of 0.20% of the average
daily net assets of the Equity Fund, Balanced Fund, Intermediate Term Bond Fund,
Short Term Bond Fund and the Municipal 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 period ended July 31, 1997 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 Investments Distribution Co. (the "Distributor"), a wholly owned
subsidiary of SEI Investments Company, 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.
(CONTINUED)
39
<PAGE>
JULY 31, 1997 (UNAUDITED)
Notes to Financial Statements (CONTINUED)
5. INVESTMENT TRANSACTIONS
================================================================================
The cost of security purchases and the proceeds from the sale of
securities, other than short-term investments for the period ended July 31,
1997, are presented below for the Funds. On July 31, 1997 the total cost of
securities and the net realized gains and losses on securities sold for federal
income tax purposes was not materially different from amounts reported for
financial reporting purposes. The aggregate gross unrealized gain or loss on
securities at July 31, 1997 for each Fund is as follows:
FUND INVESTMENT TRANSACTIONS (000)
<TABLE>
<CAPTION>
SHORT TERM IDAHO
INTERMEDIATE SHORT MUNICIPAL MUNICIPAL MUNICIPAL
EQUITY BALANCED TERM BOND TERM BOND BOND BOND BOND
FUND FUND FUND FUND FUND FUND FUND
====== ======== ============ ========= ========= ========= =========
Purchases
<S> <C> <C> <C> <C> <C> <C> <C>
U.S. Government
Securities $ -- $ -- $11,144 $ 3,995 $ -- $ -- $ --
Other 33,724 24,048 13,094 7,065 7,456 6,504 41,548
Sales
U.S. Government
Securities -- 4,629 14,086 10,072 -- -- --
Other 37,637 25,458 5,018 15,000 9,062 2,971 31,056
Aggregate gross
unrealized gain 64,575 39,450 2,431 133 153 1,455 1,796
Aggregate gross
unrealized loss (834) (478) (718) (139) (18) -- (10)
-------- ------- ------- ------- ----- ------- -------
Net unrealized gain (loss) $ 63,741 $38,972 $ 1,713 $ (6) $ 135 $ 1,455 $ 1,786
======== ======= ======= ======= ===== ======= =======
</TABLE>
At January 31, 1997, the Intermediate Term Bond Fund and the Short Term
Bond Fund had capital loss carryforwards for federal tax purposes. The losses in
the Funds can be carried forward for a maximum of eight years to offset any net
realized capital gains. Such capital loss carryforwards will expire as listed
below:
INTERMEDIATE SHORT
TERM BOND TERM BOND
FUND FUND
============ =========
Carryforwards to Expire in 2004 $1,567,931 $2,034,615
Carryforwards to Expire in 2005 519,195 8,234
40
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
6. CONCENTRATION OF CREDIT RISK
================================================================================
The Short Term Municipal Bond Fund, the Idaho Municipal Bond Fund and the
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, the Idaho Municipal Bond Fund and the Municipal Bond
Fund invest in securities which include revenue bonds, tax exempt commercial
paper, tax and revenue anticipation notes, and general obligation bonds. At July
31, 1997, the percentage of total value of investments by each revenue source
was as follows:
SHORT TERM IDAHO
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
========== ========= =========
Cash Equivalents 2% 1% 4%
Education Bonds 8% 6% 7%
General Obligation 60% 75% 37%
Hospital Bonds 2% 3% 6%
Housing Bonds 1% 4% 22%
Public Facility Bonds 5% 5% 3%
Other Revenue Bonds 7% 3% 10%
Transportation Bonds 5% -- 2%
Utility Bonds 10% 3% 9%
---- ---- ----
100% 100% 100%
==== ==== ====
(CONTINUED)
41
<PAGE>
JULY 31, 1997 (UNAUDITED)
Notes to Financial Statements (CONTINUED)
Many municipalities insure their obligations with insurance underwritten by
insurance companies that undertake to pay a holder, when due, the interest and
principal amount on an obligation if the issuer defaults on its obligation.
Although bond insurance reduces the risk of loss due to default by the issuer,
there is no assurance that the insurance company will meet its obligations.
Also, some of the securities have credit enhancements (letters of credit or
guarantees issued by third party domestic or foreign banks or other
institutions). At July 31, 1997, 47%, 61% and 46% of the total value of the
Short Term Municipal Bond Fund, Idaho Municipal Bond Fund and the Municipal Bond
Fund, respectively, were insured or had credit enhancements.
The ratings of debt holdings by Standard & Poor's or Moody's as a
percentage of total value of investments at July 31, 1997 are as follows:
<TABLE>
<CAPTION>
IDAHO
SHORT TERM MUNICIPAL MUNICIPAL
INTERMEDIATE TERM SHORT TERM MUNICIPAL BOND BOND BOND
BOND FUND BOND FUND FUND FUND FUND
================= ========== ============== ========= ==========
<S> <C> <C> <C> <C> <C>
AAA 67% 34% 51% 68% 45%
AA+ -- -- 8% -- 6%
AA 2% -- 19% 8% 27%
AA- 4% 5% 7% 5% 5%
A+ 6% 33% 3% 1% 3%
A 13% 22% 7% 7% 5%
A- 4% 6% 2% 11% 2%
BBB+ 3% -- -- -- 4%
BBB 1% -- -- -- 1%
BBB- -- -- -- -- 1%
Not rated -- -- 3% -- 1%
---- ---- ---- ---- ----
100% 100% 100% 100% 100%
==== ==== ==== ==== ====
</TABLE>
7. LINE OF CREDIT
================================================================================
Pursuant to a credit agreement dated October 10, 1996, as amended, Morgan
Guaranty Trust Company of New York provides revolving credit loans to the Funds
for short-term or emergency purposes, such as funding shareholder redemptions.
These loans are for the respective benefit of and repayable from the respective
assets of the Funds. The aggregate principal amount over all Funds in the Trust
may not exceed $10,000,000. The aggregate amount of all loans outstanding to an
individual Fund shall not exceed 5% of the total net assets of that Fund. As of
July 31, 1997, none of the Funds had in loans outstanding. For the period ended
July 31, 1997, the maximum amount borrowed was $2,500,000, the average
outstanding was $77,348, and the daily weighted average interest rate was 8.50%.
42
<PAGE>
- --------------------------------------------
The Achievement Funds
BOARD OF TRUSTEES
Frederick A. Moreton, Jr.
Robert G. Love
August Glissmeyer, Jr.
Carl S. Minden
George L. Denton, Jr.
Kent H. Murdock
James H. Gardner
Blaine Huntsman
INVESTMENT ADVISER
First Security Investment Management, Inc.
Salt Lake City, UT 84111
ADMINISTRATOR
SEI Fund Resources
Oaks, PA 19456
DISTRIBUTOR
SEI Investments Distribution Co.
Oaks, PA 19456
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
