[PHOTO OF ARCH WITH ACHIEVEMENT FUNDS LOGO]
ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 1997
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders ........... 1
Fund Objectives .................. 3
Performance Highlights ........... 4
Investment Adviser's Report ...... 5
Management's Discussion & Analysis 8
Financial Statements ............. 21
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The Achievement Funds
Annual Report
JANUARY 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]
<PAGE>
Letter to Shareholders
[PICTURE OF FREDERICK A. MORETON, JR., CHAIRMAN OF THE BOARD OF TRUSTEES OF
THE ACHIEVEMENT FUNDS AND JOHN L. RUDISILL, SENIOR VICE PRESIDENT AND MANAGER OF
THE MUTUAL FUND CENTER OF FIRST SECURITY CORPORATION SITTING IN FRONT OF AN
ARCH]
IT IS A PLEASURE TO BE ABLE TO ONCE AGAIN REPORT TO YOU THE ANNUAL RESULTS OF
THE ACHIEVEMENT FUNDS FAMILY OF MUTUAL FUNDS. FISCAL 1996-1997 WAS ANOTHER
RECORD YEAR FOR THE STOCK MARKET AND ALSO A GOOD YEAR FOR OUR FAMILY OF MUTUAL
FUNDS. WE ARE FORTUNATE TO HAVE EXPERIENCED TWO OF THE BEST YEARS, BACK TO BACK,
SEEN IN THE FINANCIAL MARKETS IN RECENT HISTORY. THIS BULL MARKET HAS DONE MUCH
TO PROPERLY LAUNCH OUR NEW FAMILY OF MUTUAL FUNDS AND PROVIDE A SOLID BASIS FOR
CONTINUED FUTURE GROWTH.
HAVING JUST "TRUMPETED" THE PRAISES OF AN EXCEPTIONAL STOCK MARKET, WE MUST ALSO
"SOUND A NOTE" OF CAUTION. THE CYCLICAL NATURE OF THE STOCK AND BOND MARKETS
DICTATES THAT DOUBLE DIGIT GROWTH CANNOT BE SUSTAINED. AS REPORTED HEREIN BY
STERLING K. JENSON, PRESIDENT OF FIRST SECURITY INVESTMENT MANAGEMENT, INC., OUR
FUND'S INVESTMENT ADVISOR, CAUTIOUS OPTIMISM IS IN ORDER. WE CONTINUE TO URGE
OUR CUSTOMERS TO PRACTICE THE KEY ELEMENTS OF LONG-TERM WEALTH ACCUMULATION
- -PATIENCE, APPROPRIATE PORTFOLIO DIVERSIFICATION AND A VIEW TOWARD LONG-TERM
GOALS RATHER THAN SHORT-TERM MARKET FUNCTIONS. WE BELIEVE THIS PHILOSOPHY, MORE
THAN ANYTHING ELSE, DEFINES THE ACHIEVEMENT FUNDS, AS COMPARED WITH OTHER MUTUAL
FUND FAMILIES.
DURING NOVEMBER 1996, WE INTRODUCED A NEW FUND -- THE ACHIEVEMENT MUNICIPAL BOND
FUND -- BRINGING THE TOTAL NUMBER OF FUNDS TO A CURRENT LEVEL OF SEVEN. DURING
THE FIRST THREE MONTHS OF SALES, WE HAVE SEEN A VERY POSITIVE RESPONSE TO THIS
NEW FUND FROM BOTH OUR INSTITUTIONAL AND RETAIL INVESTORS. WE CONTINUE TO
EXAMINE OTHER OPPORTUNITIES TO EXPAND OUR FUND OFFERINGS BASED ON THE NEEDS OF
OUR CUSTOMERS AND OUR ASSESSMENT OF GROWTH POTENTIAL.
WE ARE PLEASED TO WELCOME DURING 1996 THREE NEW MEMBERS TO THE ACHIEVEMENT FUND
TRUST BOARD OF TRUSTEES -- MR. JAMES GARDNER, PROFESSOR AT THE UNIVERSITY OF
UTAH, MR. BLAINE HUNTSMAN, PRIVATE INVESTOR AND FORMER CHAIRMAN AND CEO OF
OLYMPUS CAPITAL CORP., AND MR. KENT MURDOCK, PRESIDENT OF O.C. TANNER COMPANY.
EACH OF THESE GENTLEMEN BRINGS A BROAD RANGE OF VALUABLE SKILLS AND TALENTS TO
OUR BOARD OF TRUSTEES. WE ARE ALSO HONORED TO REPORT THE ELECTION OF MR.
MITCHELL MELICH TO THE POSITION OF BOARD MEMBER EMERITUS. WE WISH TO THANK MITCH
FOR HIS VALUABLE SERVICE OVER THE YEARS.
1
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IN SUMMARY, WE WISH TO THANK EACH OF OUR SHAREHOLDERS FOR THEIR SUPPORT OF THE
ACHIEVEMENT FUND PROGRAM. WE WELCOME YOUR COMMENTS AND URGE YOU TO CONTACT YOUR
BROKER, TRUST OFFICER OR OTHER INVESTMENT PROFESSIONAL WITH ANY QUESTIONS YOU
MAY HAVE, OR FEEL FREE TO CONTACT OUR SHAREHOLDER SERVICES PERSONNEL BY CALLING
1 (800) 472-0577.
/S/ SIGNATURE
FREDERICK A. MORETON, JR.
CHAIRMAN OF THE BOARD OF TRUSTEES
The Achievement Funds Trust
/S/ SIGNATURE
JOHN L. RUDISILL
SENIOR VICE PRESIDENT AND MANAGER
Mutual Fund Center
First Security Corporation
2
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Fund Objectives THE ACHIEVEMENT FUNDS
STOCK AND BALANCED FUNDS
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THE ACHIEVEMENT EQUITY FUND
To provide long-term capital appreciation with current income as a secondary
consideration in selecting portfolio securities.
THE ACHIEVEMENT BALANCED FUND
To provide both income and capital appreciation consistent with prudent
investment risk.
BOND FUNDS
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THE ACHIEVEMENT INTERMEDIATE TERM BOND FUND
To provide income consistent with prudent investment risk and maintenance of
appropriate liquidity.
THE ACHIEVEMENT SHORT TERM BOND FUND
To preserve principal value and maintain a high degree of liquidity while
providing current income.
THE ACHIEVEMENT SHORT TERM MUNICIPAL BOND FUND
To provide as high a level of current income that is exempt from Federal
income tax as is consistent with preservation of capital.
THE ACHIEVEMENT IDAHO MUNICIPAL BOND FUND
To provide as high a level of current income exempt from Federal and Idaho
income taxes as is consistent with preservation of capital.
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.
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Terms You Need to Know
TOTAL RETURN is the change in value of an investment from the beginning to the
end of a period, assuming the reinvestment of all distributions.
NET ASSET VALUE (NAV) is the market worth of one share of a mutual fund. This
figure is derived by taking a fund's total assets - securities, cash and any
accrued earnings - deducting liabilities, and dividing by the number of shares
outstanding.
YIELD is the percentage rate at which a fund's portfolio earns income, based on
a formula set by the Securities and Exchange Commission.
3
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<TABLE>
<CAPTION>
Performance Highlights of the Funds
FOR THE PERIOD ENDED JANUARY 31, 1997
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Total Total Return NAV Share NAV Share
THE ACHIEVEMENT FUNDS Net Assets Annualized Since Total Return Price Price 30-Day Distributions
(in millions) Inception One Year 1/31/96 1/31/97 SEC Yield Per Share
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
EQUITY INSTITUTIONAL $177.2 26.25% 20.00% $12.64 $14.03 0.85% $1.05
FUND RETAIL CLASS A 4.1 25.56 19.72 12.65 14.04 0.56 1.02
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BALANCED INSTITUTIONAL 156.3 18.18 12.03 11.79 12.01 2.49 1.13
FUND RETAIL CLASS A 2.9 17.40 11.81 11.78 12.00 2.16 1.10
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INTERMEDIATE INSTITUTIONAL 134.6 8.12 2.06 10.79 10.37 5.82 0.62
TERM BOND FUND RETAIL CLASS A 2.7 7.20 1.80 10.82 10.40 5.36 0.60
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SHORT TERM INSTITUTIONAL 65.3 6.21 4.40 10.18 10.01 5.52 0.60
BOND FUND RETAIL CLASS A .4 5.70 4.04 10.18 10.00 5.19 0.58
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM INSTITUTIONAL 21.8 4.85 3.03 10.23 10.08 3.55 0.46
BOND FUND RETAIL CLASS A .2 4.75 2.76 10.25 10.10 3.25 0.43
- ------------------------------------------------------------------------------------------------------------------------------------
IDAHO MUNICIPAL INSTITUTIONAL 27.5 7.41 1.31 10.80 10.41 4.55 0.52
BOND FUND RETAIL CLASS A 5.5 6.39 1.05 10.83 10.44 4.13 0.50
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MUNICIPAL INSTITUTIONAL 53.0 5.44 -- -- 10.02 4.72 0.12
BOND FUND RETAIL CLASS A 4.9 6.27 -- -- 10.01 4.29 0.15
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</TABLE>
[A bar graph depicting the total returns annualized since inception to
January 31, 1997 for The Achievements Funds. The plot points are as follows:]
THE ACHIEVEMENT FUNDS TOTAL RETURN ANNUALIZED
SINCE INCEPTION
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Equity Fund Institutional (12/28/94) 26.25%
Retail Class A (3/6/95) 25.56%
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Balanced Fund Institutional (12/28/94) 18.18%
Retail Class A (3/6/95) 17.40%
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Intermediate Term Institutional (12/28/94) 8.12%
Bond Fund Retail Class A (3/6/95) 7.20%
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Short Term Bond Fund Institutional (12/28/94) 6.21%
Retail Class A (3/6/95) 5.70%
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Short Term Municipal Institutional (12/28/94) 4.85%
Bond Fund Retail Class A (3/6/95) 4.75%
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Idaho Municipal Institutional (12/28/94) 7.41%
Bond Fund Retail Class A (3/6/95) 6.39%
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Municipal Bond Fund Institutional (11/1/96) 5.44%
Retail Class A (11/4/96) 6.27%
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PERFORMANCE DATA REPRESENTS PAST RESULTS AND ARE NO GUARANTEE OF FUTURE RESULTS.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. YIELD
FLUCTUATES. YIELD REFLECTS THE PORTFOLIO'S EARNING POWER, NET OF FUND EXPENSES.
4
<PAGE>
Investment Adviser's Report THE ACHIEVEMENT FUNDS
[PHOTO OF STERLING K. JENSON, PRESIDENT OF FIRST SECURITY
INVESTMENT MANAGEMENT, INC. SITTING IN FRONT OF AN ARCH.]
From the professional investor to the casual observer, the incredible,
death-defying stock market both gratified and mystified individuals as it
continued it's relentless climb to newer and loftier heights throughout 1996 and
into early 1997. In 1996, the Dow Jones Industrial Average (Dow) hit new highs
forty-five different days over the year, or on one of every six trading days.
This spectacular bull market seems frightening to many investors today,
especially to those with long memories dating back to October, 1987 or even
longer yet, the 1973-74 period. Perhaps the most concerned are those who still
remember the 1929 through 1933 years.
All the positive catalysts for continued market momentum held strong throughout
the past year. Inflation held steadfast at under three percent. The Federal
Reserve kept interest rates constant throughout the majority of the year.
Corporate earnings grew about ten percent on average, and generally ahead of
Wall Street's expectations. Enormous cashflow from mutual fund purchases
increased the demand for stocks; it is estimated that nearly $250 billion new
dollars poured into mutual funds. Corporate cashflow into stocks through merger
and acquisition activities more than doubled the mutual fund inflows with over
$570 billion spent by companies to acquire each other. Corporate stock buyback
programs also continued at a strong pace. Finally, the fiscal tone in Washington
continues pointed toward a balanced budget, capital gains tax reductions, and
adjusting of COLA's for entitlement programs. All of these agenda items are
favorable for the markets.
STOCK MARKET REVIEW
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As a quick refresher, let us recall that the Dow began 1995 at the 3834 level
and finished the year at 5117 for a 33.5% price gain. In last year's annual
report we mentioned that the market's valuation remained attractive in spite of
it's blistering performance and we also stated that we felt the market returns
for 1996 could exceed 15%.
Except for minor setbacks in April and July, the stock market rose every month
of the year, crossing the 6000 level for the first time on October 14, 1996. The
final run began on election day and continued through year-end with the Dow
closing 1996 at 6448! January, 1997, the final month of the Achievement Funds'
fiscal year, has seen a continuation of the bull market with the Dow reaching
the 6813 level by the end of the month.
Signs of mania abound - high price-earnings ratios, low dividend yields,
extraordinary trading volumes, and record initial public offerings. Investors
seem to be buying stocks because the rewards are there, not because they've
found a bargain. Even as the market hits one new high after another, you can
hear folks muttering, "this can't go on."
5
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S&P 500 INDEX
[GRAPHIC OMITTED]
A LINE GRAPH DEPICTING THE CHANGE IN PRICE OF THE STANDARD & POOR'S 500 INDEX
FROM JANUARY 31, 1996 THROUGH JANUARY 31, 1997. THE PLOT POINTS ARE AS FOLLOWS:
DATE INDEX LEVEL
1/31/96 636.02
4/30/96 654.17
7/31/96 639.95
10/31/96 705.27
1/31/97 786.16
To the surprise of nearly all the experts, however, this bull market is
still alive and stomping. This one continues to be powered by some very strong
fundamental and technical factors. Stocks aren't cheap, but that doesn't mean
they won't go higher. The price/earnings multiple for the S&P 500 index has
grown from 15 times earnings at the end of last year to 18 times earnings
presently. Given stable interest rates, moderate economic growth, strong
corporate earnings, positive cash flows, a strengthening dollar, and positive
fiscal policy, the P/E ratio could expand to 19 or 20 times earnings; earnings
that should grow 7 to 8 percent in 1997. Stocks, therefore, have the potential
of returning nearly 15 percent again this year.
BOND MARKET REVIEW
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Bond prices declined throughout 1996. Total returns for bonds were, in general,
only slightly positive with coupon interest returns a little ahead of the
principal value declines. The 30 year U.S. Treasury bond yield-to-maturity
increased from 5.95% to 6.64%. The robust growth in the economy for the year,
with GDP growing at an estimated 3.4%, heightened inflation fears. The reported
growth of 4.7% for the fourth quarter of 1996 has further exacerbated the
anxieties in bond land, driving the 30-year yield further upward to 6.80% at the
end of January, 1997.
LEHMAN AGGREGATE BOND INDEX
[GRAPHIC OMITTED]
A LINE GRAPH DEPICTING THE CHANGE IN PRICE OF THE LEHMAN AGGREGATE BOND INDEX
FROM JANUARY 31, 1996 THROUGH JANUARY 31, 1997. THE PLOT POINTS ARE AS FOLLOWS:
DATE INDEX LEVEL
1/31/96 585.18
4/30/96 564.83
7/31/96 574.23
10/31/96 600.00
1/31/97 607.53
Through this rise in rates, however, the Federal Reserve has held the Fed
Funds rate constant over the past year at 5.25%. Reported rates of inflation
continue to be rather benign, with all indicators signaling inflation to be
running at less than 3%. With
6
<PAGE>
THE ACHIEVEMENT FUNDS
the economy fully employed, however, each economic statistic reported by the
government is being carefully scrutinized for future indications of inflation.
Employment cost measures are the figures most seriously considered to determine
the forward direction of inflation. At this point we are not factoring in any
movement by the Federal Reserve in interest rates over the course of 1997.
Therefore, we anticipate that interest rates will trade in a range of 6% to 7%
throughout the year, providing bonds the opportunity to generate positive
returns, mainly derived from coupon income.
IN SUMMARY
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At First Security Investment Management we expect another positive year for
stocks in 1997, with returns much lower than the two previous years but still
approaching double-digit percentage expansion. Bonds will also generate positive
returns mainly from coupon income.
/S/ SIGNATURE
Sterling K. Jenson
PRESIDENT
First Security Investment Management, Inc.
Investment Adviser
7
<PAGE>
Management's Discussion & Analysis
of Fund Performance
THE ACHIEVEMENT EQUITY FUND
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The Achievement Equity Fund seeks long-term capital appreciation with current
income as a secondary consideration. The Fund should interest investors who seek
capital appreciation over the long-term to satisfy a future goal such as
retirement. Long-term investing means assuming the risks associated with
investing in the stock market in return for expected long-term rewards.
For the fiscal year ending January 31, 1997, the Fund's Institutional Class
provided a total return of 20.0%; since inception on December 28, 1994, it is up
62.9%. The S&P 500 Index returned 26.3% for the year ending January 31, 1997.
The Fund invests in medium to large capitalization companies that are seasoned
in their businesses through many economic cycles. Selected stocks show good
growth in earnings yet are priced attractively in relation to those earnings.
The only derivative action allowed in the portfolio is covered-call writing as
described in the prospectus. The Fund may write covered-call options as a means
of increasing the yield of the portfolio and as a way to provide limited
protection against decreases in the market value of portfolio securities. No
other derivative products are utilized in managing the Fund.
The portfolio is diversified with the average weighting per stock at less than
2% of the total. Sector weightings will be moderately over- or under-weighted to
the S&P 500 Index based on our economic and market outlook. Performance
differences between the Fund and the Index will, therefore, be determined by the
sector weighting differences and individual stock selections.
Presently, the Achievement Equity Fund is weighted by sector in line with the
weightings of the Index, with the exception of a modest underweighting in
utilities and a modest overweighting in consumer services.
8
<PAGE>
THE ACHIEVEMENT FUNDS
ACHIEVEMENT EQUITY FUND -- INSTITUTIONAL CLASS
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Equity
Fund, Institutional Class from December 31, 1994 through January 31, 1997 as
compared with the growth of a $10,000 investment in the Standard & Poor's 500
Composite Index over the same time period. The plot points are as follows:
12/31/94 1/31/95 1/31/96 1/31/97
Equity Fund, Institutional Class 10,000 10,291 13,641 16,369
Standard & Poor's 500 Composite Index 10,000 10,259 14,221 17,965
ACHIEVEMENT EQUITY FUND -- RETAIL CLASS A
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Equity
Fund, Retail Class A from March 31, 1995 through January 31, 1997 as compared
with the growth of a $10,000 investment in the Standard & Poor's 500 Composite
Index over the same time period. The plot points are as follows:
3/31/95 1/31/96 1/31/97
Equity Fund, Retail Class A 9,550 11,982 14,345
Standard & Poor's 500 Composite Index 10,000 12,961 16,373
9
<PAGE>
THE ACHIEVEMENT BALANCED FUND
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The Achievement Balanced Fund seeks both income and capital appreciation
consistent with prudent investment risk. The Fund attempts to "walk the line"
between income and growth by taking advantage of the potential for growth
offered by stocks and income offered by bonds.
For the fiscal year ending January 31, 1997, the Institutional class of the Fund
produced a total return of 12.03%. Its benchmark, the weighted average of the
Lehman Intermediate Government/ Corporate Bond Index and the S&P 500 had a total
return of 14.94%.
The difference in performance between the Fund and its benchmark can be
attributed to stock selection. The absence in the Fund of some of the larger and
more expensive stocks that make up the index impacted the funds performance as
those stocks performed very well over the last year. The Fund invests in medium
to large capitalization companies that demonstrate good growth in earnings yet
are priced attractively in relation to those earnings. Some of the best
performing stocks in the market last year did not fit the Fund's investment
parameters.
The portfolio's bond allocation maintained a slightly longer maturity and
duration than the Lehman index. With an average bond allocation of 40%, the
longer maturity and duration helped increase the Fund's yield in an otherwise
flat year for bonds.
Looking forward, we expect both the bond and stock markets to have positive
returns this year. Inflation should remain under control and interest rates
should continue their downward trend under this scenario. We do expect the
growth rate of earnings to moderate this year, but with a decline in interest
rates the moderation in earnings should not be enough to put downward pressure
on the stock market. The Fund is positioned for a rising stock market with
almost 65% of its assets in equity. The equity portion of the Fund is highly
diversified with the average weighting in any individual stock between 1% and
2%. Sector weightings are also conservative with slight variations relative to
the S&P 500. The bond portion of the Fund currently has a maturity and duration
that is slightly longer than the Lehman Index. This is also a result of our
expectation for flat to declining interest rates. The Achievement Balanced Fund
will actively change both its asset class allocation and individual security
positions in response to any changes in the market or economy.
10
<PAGE>
THE ACHIEVEMENT FUNDS
ACHIEVEMENT BALANCED FUND -- INSTITUTIONAL CLASS
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement
Balanced Fund, Institutional Class from December 31, 1994 through January 31,
1997 as compared with the growth of a $10,000 investment in the Standard &
Poor's 500 Composite Index and the Lehman Intermediate Government/Corporate Bond
Index over the same time period. The plot points are as follows:
12/31/94 1/31/95 1/31/96 1/31/97
Balanced Fund, Institutional Class 10,000 10,231 12,702 14,230
Standard & Poor's 500 Composite Index 10,000 10,259 14,221 17,965
Lehman Intermediate
Government/Corporate Bond Index 10,000 10,168 11,630 12,045
ACHIEVEMENT BALANCED FUND -- RETAIL CLASS A
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement
Balanced Fund, Retail Class A from March 31, 1995 through January 31, 1997 as
compared with the growth of a $10,000 investment in the Standard & Poor's 500
Composite Index and the Lehman Intermediate Government/Corporate Bond Index over
the same time period. The plot points are as follows:
3/31/95 1/31/96 1/31/97
Balanced Fund, Retail Class A 9,550 11,377 12,720
Standard & Poor's 500 Composite Index 10,000 12,961 16,373
Lehman Intermediate
Government/Corporate Bond Index 10,000 11,142 11,540
11
<PAGE>
THE ACHIEVEMENT INTERMEDIATE TERM BOND FUND
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The Achievement Intermediate Term Bond Fund seeks to provide income consistent
with prudent investment risk and maintenance of appropriate liquidity. Fund
volatility is managed based upon economic, capital market, and interest rate
expectations.
The Fund should be considered by investors desiring a relatively stable
income-producing investment with managed volatility and who prefer a mutual fund
comprised of investment grade securities. The Fund could be used on a
stand-alone basis or as an integral part of a portfolio utilizing asset
allocation methods.
Individual bond purchases are based upon credit quality, liquidity, and
yield-to-maturity spreads over comparable risk-free investments. Additionally,
they are analyzed for their individual impact on the Fund as a whole in regards
to average maturity, duration, allocation, sector weighting, and
diversification.
Interest rates increased by 93 to 103 basis points (.93% to 1.03%) in the two to
ten year range of the U.S. Treasury yield curve over the past twelve months.
Treasury bonds with maturities longer than ten years actually had negative total
returns due to the increase in rates. The result of this upward change in
interest rates was a total return somewhat below the coupon yield. The total
return for the Institutional Class of the Fund for the fiscal year ending
January 31, 1997 was 2.06% and 7.68% on average for the past two fiscal years.
The Fund performed in line with the Lipper Intermediate Government Index which
had a total return of 2.48% and 8.28% for the same time periods. In comparison,
the Lehman Intermediate Government/Corporate Bond Index posted a return of
3.53% for the fiscal year and 8.74% on average for the past two fiscal years.
The 1996 economy was somewhat stronger than had been expected at the beginning
of the year triggering concerns of possible increases in the rate of inflation.
However, due to a lack of inflationary pressure, the Fed Funds target rate, now
at 5.25%, has remained unchanged for a year.
Our expectation is for a slower growth economy as we proceed through 1997
allowing for continued low inflation and an interest rate as measured by the 30
year U.S. Treasury to be in a range of 6% to 7% with a downward bias towards the
end of the year. Continued foreign demand for U.S. debt instruments and an
outlook for continued reduction of the budget deficit should continue to be
positive supports. The Intermediate Term Bond Fund is structured to take
advantage of these expectations.
12
<PAGE>
THE ACHIEVEMENT FUNDS
ACHIEVEMENT INTERMEDIATE TERM BOND FUND -- INSTITUTIONAL CLASS
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement
Intermediate Term Bond Fund, Institutional Class from December 31, 1994 through
January 31, 1997 as compared with the growth of a $10,000 investment in the
Lehman Intermediate Government/Corporate Bond Index over the same time period.
The plot points are as follows:
12/31/94 1/31/95 1/31/96 1/31/97
Intermediate Term Bond Fund,
Institutional Class 10,000 10,147 11,529 11,767
Lehman Intermediate
Government/Corporate Bond Index 10,000 10,168 11,630 12,045
ACHIEVEMENT INTERMEDIATE TERM BOND FUND -- RETAIL CLASS A
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement
Intermediate Term Bond Fund, Retail Class A from March 31, 1995 through January
31, 1997 as compared with the growth of a $10,000 investment in the Lehman
Intermediate Government/Corporate Bond Index over the same time period. The plot
points are as follows:
3/31/95 1/31/96 1/31/97
Intermediate Term Bond Fund, Retail Class A 9,650 10,693 10,886
Lehman Intermediate Government/Corporate Bond Index 10,000 11,142 11,540
13
<PAGE>
THE ACHIEVEMENT SHORT TERM BOND FUND
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The objective of The Achievement Short Term Bond Fund is to preserve principal
value and maintain a high degree of liquidity while providing current income.
The Fund should be considered by those investors who seek a high-quality,
relatively stable income-producing investment and are willing to accept a
moderate degree of risk.
The Fund seeks to achieve a total return over time greater than that of the
average money market fund. Using the 3 month T-bill as a proxy for money market
funds, the average total return for the past fiscal year is approximately 5.10%
and 5.35% on average for the past two fiscal years. For the fiscal year ending
January 31, 1997, the Institutional Class of the Fund posted a total return of
4.40% and an average of 6.09% for the past two fiscal years. As an additional
comparison, the Salomon One Year Treasury Benchmark-on the-Run returned 6.60%
and 5.52% over the same time periods respectively.
The general economy, the direction of interest rates, and the Federal Reserve's
action remain the primary factors that will continue to influence the Fund.
14
<PAGE>
THE ACHIEVEMENT FUNDS
ACHIEVEMENT SHORT TERM BOND FUND -- INSTITUTIONAL CLASS
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Short
Term Bond Fund, Institutional Class from December 31, 1994 through January 31,
1997 as compared with the growth of a $10,000 investment in the Salomon 1-Year
Treasury Benchmark on-the-Run over the same time period. The plot points are as
follows:
12/31/94 1/31/95 1/31/96 1/31/97
Short Term Bond Fund,
Institutional Class 10,000 10,062 10,847 11,324
Salomon 1-Year Treasury Benchmark
on-the-Run 10,000 10,101 10,879 11,478
ACHIEVEMENT SHORT TERM BOND FUND -- RETAIL CLASS A
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Short
Term Bond Fund, Retail Class A from March 31, 1995 through January 31, 1997 as
compared with the growth of a $10,000 investment in the Salomon 1-Year Treasury
Benchmark on-the-Run over the same time period. The plot points are as follows:
3/31/95 1/31/96 1/31/97
Short Term Bond Fund, Retail Class A 9,850 10,460 10,883
Salomon 1-Year Treasury Benchmark on-the-Run 10,000 10,613 11,198
15
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THE ACHIEVEMENT SHORT TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
The Achievement Short Term Municipal Bond Fund seeks to provide as high a level
of current income that is exempt from Federal income tax as is consistent with
the preservation of capital. The Fund holds high quality bonds in the portfolio.
43% of the bonds held by the Fund are rated AAA; 28.5% are AA, and none are
lower than A. The Fund holds 42 issues representing 25 states, with only two
states, Texas and Wisconsin, representing more than 5% of the total.
As interest rates rose in 1996, the Fund's weighted average maturity was
maintained at about 2 1/2 years to preserve principal value. In line with the
overall tax-exempt bond market, the Fund's 30 day SEC yield rose from 3.38% to
3.55% over the course of the fiscal year ending January 31, 1997. The Fund was
therefore able to maintain its record of "never having had a negative quarter"
based on its total return. As of the fiscal year end, 100% of the Fund's
investments were exempt from Federal income taxes and the Alternative Minimum
Tax (A.M.T.).
This Fund was not conceived as a "stand alone" investment but rather as a part
of an overall financial plan to be used in tandem with other investments. The
Fund imparts a degree of stability to an entire portfolio while at the same time
providing a steady flow of monthly income that is exempt from Federal income
taxes, an advantage versus most short term cash equivalents.
Further, during periods of rising rates and volatile stock and bond prices, the
Fund's stability factor is a desirable attribute. As we all know, the
"Goldilocks Days" of the U.S. economy and the financial markets will not last
forever. When that point is reached, the Fund's "safe haven" features will
become quite valuable.
16
<PAGE>
THE ACHIEVEMENT FUNDS
ACHIEVEMENT SHORT TERM MUNICIPAL BOND FUND -- INSTITUTIONAL CLASS
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Short
Term Municipal Bond Fund, Institutional Class from December 31, 1994 through
January 31, 1997 as compared with the growth of a $10,000 investment in the
Lehman Brothers 1-Year Municipal Bond Index over the same time period. The plot
points are as follows:
12/31/94 1/31/95 1/31/96 1/31/97
Short Term Municipal Bond Fund,
Institutional Class 10,000 10,040 10,714 11,038
Lehman 1-Year Municipal Bond Index 10,000 10,051 10,709 11,175
ACHIEVEMENT SHORT TERM MUNICIPAL BOND FUND -- RETAIL CLASS A
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Short
Term Municipal Bond Fund, Retail Class A from March 31, 1995 through January 31,
1997 as compared with the growth of a $10,000 investment in the Lehman Brothers
1-Year Municipal Bond Index over the same time period. The plot points are as
follows:
3/31/95 1/31/96 1/31/97
Short Term Municipal Bond Fund, Retail Class A 9,850 10,382 10,669
Lehman 1-Year Municipal Bond Index 10,000 10,513 10,971
17
<PAGE>
THE ACHIEVEMENT IDAHO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
The Achievement Idaho Municipal Bond Fund seeks to provide as high a level of
current income exempt from Federal and Idaho State income taxes as is consistent
with the preservation of capital. During the past year, the income payout was
essentially 100% double tax-exempt (a tiny amount was derived from money market
mutual funds, which are subject to Idaho tax) with a total capital gain payout
of $0.057 per share. Of the capital gains, 60% were paid in October and 40% in
December; both were taxable at the capital gains rate. Total payouts were:
Tax-Exempt Income $0.46/share
Capital Gains $0.057/share
-------------------------------------------
TOTAL PAYOUT $0.517/SHARE
In the fiscal year ending January 31, 1997, the Fund extended its weighted
average maturity from 11.61 to 14.56 years. The SEC 30-day yield rose from 4% to
4.55%, an increase of 13.8% over the 12 months ending January 31, 1997. This was
the result of a change in the Fund's prospectus effective in early October 1996,
which allowed maturities to be extended beyond the previous 12 year average,
thereby enabling the Fund to generate more interest income.
At fiscal year end, the Fund owned 87 issues, 86 of which (99.25%) were Idaho
municipal bonds. 73% were General Obligation bonds, 5% higher education revenue
bonds, 3.4% health care revenue bonds, 3% housing bonds (also subject to
A.M.T.), 3% industrial revenue bonds, with the balance of the Fund made up of
water and sewer revenue bonds, Tax Anticipation Notes (TANS), and other
miscellaneous revenue bonds. At the end of the fiscal year, 72.9% of the Fund's
issues were rated AAA, 11.8% rated AA, and 15.3% rated A. The Fund may hold up
to 20% of its assets in BBB rated bonds, but there are none in the portfolio at
this time. 25.4% of the Fund's bonds mature in less than 10 years, 68.2% in 10
to 20 years, and 6.4% in 20 years or more. In 1997 the Fund hopes to continue to
provide a steady monthly flow of double tax-exempt income derived from a high
quality portfolio of Idaho municipal bonds, which were issued to improve the
education and general quality of life for Idaho residents.
18
<PAGE>
THE ACHIEVEMENT FUNDS
ACHIEVEMENT IDAHO MUNICIPAL BOND FUND -- INSTITUTIONAL CLASS
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Idaho
Municipal Bond Fund, Institutional Class from December 31, 1994 through January
31, 1997 as compared with the growth of a $10,000 investment in the Lehman
Brothers 5-Year Municipal Index and the Lehman Brothers 10-Year Municipal Index
over the same time period. The plot points are as follows:
12/31/94 1/31/95 1/31/96 1/31/97
Idaho Municipal Bond Fund,
Institutional Class 10,000 10,179 11,470 11,620
Lehman 5-Year Municipal Index 10,000 10,124 11,275 11,676
Lehman 10-Year Municipal Index 10,000 10,259 11,835 12,296
ACHIEVEMENT IDAHO MUNICIPAL BOND FUND -- RETAIL CLASS A
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Achievement Idaho
Municipal Bond Fund, Retail Class A from March 31, 1995 through January 31, 1997
as compared with the growth of a $10,000 investment in the Lehman Brothers
5-Year Municipal Index and the Lehman Brothers 10-Year Municipal Index over the
same time period. The plot points are as follows:
3/31/95 1/31/96 1/31/97
Idaho Municipal Bond Fund, Retail Class A 9,600 10,566 10,677
Lehman 5-Year Municipal Index 10,000 10,835 11,221
Lehman 10-Year Municipal Index 10,000 11,069 11,500
19
<PAGE>
THE ACHIEVEMENT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
The investment objective of the Achievement Municipal Bond Fund is to provide as
high a level of current income that is exempt from Federal income tax as is
consistent with the preservation of capital.
The Fund commenced operations as a mutual fund on November 1, 1996, and
therefore only has one fiscal quarter in the fiscal year ended January 31, 1997.
The current structure of the Fund by quality is as follows: AAA, 49.9%; AA,
34.0%; and A, 16.1%. The Fund may own BBB rated issues up to 20% of the assets
in the portfolio, but none have been purchased thus far. The bond maturities
held by the Fund are as follows: 1 to 10 years, 16.6%; 11 to 20 years, 67.4%;
and more than 20 years, 16%.
The Fund is a national fund and owns issues representing 30 states, with
approximately equal amounts held in each of the four quadrants of the U.S.A.
Only two states represent more than 5% of the total: Texas and Washington with
7% each.
The tax-exempt bond market has suffered through two trying years. In 1995, the
municipal market had to recover from the Orange County, California default and
was adversely impacted in 1996 by Steve Forbes's "flat tax" proposals in the
Republican Primary elections.
We do not foresee anything of a similar nature on the horizon in 1997. However,
state credits may be adversely affected by financial pressures resulting from
welfare reform, as much of that expense is being forced back to the state level.
Consequently, of 56 issues held, only 4 are direct obligations of a state or
state muni bond bank. The balance depend largely upon local credits or other
defined sources of revenue.
The Fund hopes to achieve its investment goal of providing shareholders with a
steady flow of relatively high monthly income payouts, which are 100% exempt
from Federal income taxes. At this time, the municipal bond yield curve is
relatively flat in the 20 to 30 year maturity range. Since we believe that the
interest rate risk of investing in bonds with maturities in this range outweighs
the incremental gain in yield, the Fund's new investments are in the 15 to 20
year maturities. As market conditions change, the Fund's investment strategy
will adjust, an advantage of a mutual fund versus individual bond holdings.
20
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
JANUARY 31, 1997
Statement of Net Assets
- --------------------------------------------------------------------------------
EQUITY FUND
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
PIE CHART DEPICTING THE ASSET ALLOCATION AS OF JANUARY 31, 1997 FOR THE
ACHIEVEMENT EQUITY FUND. THE BREAKDOWN IS AS FOLLOWS:
CHEMICALS AND DRUGS 11.7%
CONSUMER PRODUCTS 8.0%
DURABLE GOODS 30.0%
FINANCIAL 12.8%
OIL-ENERGY 9.8%
RETAIL 6.3%
UTILITIES 8.1%
OTHER 13.3%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 95.6%
AGRICULTURE -- 1.0%
Dole Food 50,000 $ 1,862
--------
AEROSPACE -- 2.6%
Boeing 20,000 2,143
Lockheed Martin 27,000 2,484
--------
4,627
--------
AUTOMOTIVE -- 0.7%
Ford Motor 38,000 1,221
--------
BANKS -- 6.6%
Banc One 50,000 2,269
BankAmerica 26,500 2,958
Barnett Banks of Florida 22,000 968
Chase Manhattan Bank 13,800 1,276
Citicorp 15,000 1,746
NationsBank 26,000 2,808
--------
12,025
--------
BEAUTY PRODUCTS -- 2.0%
Gillette 23,000 1,874
Procter & Gamble 15,000 1,733
--------
3,607
--------
CHEMICALS -- 2.5%
B.F. Goodrich 60,000 2,460
Monsanto 55,000 2,083
--------
4,543
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 1.7%
GTE 67,000 $ 3,149
--------
COMPUTERS & SERVICES -- 3.1%
Cisco Systems* 22,852 1,594
Hewlett Packard 29,000 1,526
International Business
Machines 15,800 2,485
--------
5,605
--------
COMPUTER SOFTWARE -- 2.1%
Microsoft* 25,000 2,550
Oracle Systems* 32,000 1,244
--------
3,794
--------
CONSUMER PRODUCTS -- 0.8%
Nike 21,000 1,425
--------
DRUGS -- 8.4%
Abbott Laboratories 24,600 1,338
Eli Lilly 28,500 2,483
Genzyme* 86,000 2,408
Merck 21,500 1,951
Pfizer 26,000 2,415
Schering Plough 25,000 1,891
Smithkline Beecham ADR 37,919 2,740
--------
15,226
--------
ELECTRICAL UTILITIES -- 1.7%
DTE Energy 45,000 1,412
Texas Utilities 40,000 1,620
--------
3,032
--------
ELECTRONICS -- 1.0%
Allen Group 76,865 1,883
--------
ENTERTAINMENT -- 2.1%
Viacom, Class B* 56,000 1,918
Walt Disney 25,000 1,831
--------
3,749
--------
ENVIRONMENTAL SERVICES -- 0.9%
WMX Technologies 43,000 1,575
--------
FINANCIAL SERVICES -- 3.3%
American Express 33,000 2,058
Federal National Mortgage
Association 53,000 2,093
Imperial Credit Industries* 87,724 1,919
--------
6,070
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
<PAGE>
JANUARY 31, 1997
STATEMENT OF NET ASSETS
EQUITY FUND(CONCLUDED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.3%
Campbell's Soup 18,400 $ 1,527
Coca Cola 33,000 1,910
ConAgra 30,000 1,515
PepsiCo 80,000 2,790
--------
7,742
--------
GAS/NATURAL GAS -- 1.6%
Coastal 60,000 2,903
--------
HOME IMPROVEMENT PRODUCTS -- 1.0%
Armstrong World Industries 25,000 1,775
--------
HOTELS & LODGING -- 0.9%
Hilton Hotels 57,000 1,624
--------
INSURANCE -- 1.7%
American International Group 14,400 1,744
General Re 8,200 1,324
--------
3,068
--------
MACHINERY -- 6.0%
Case 26,000 1,378
General Electric 53,000 5,459
Harnischfeger Industries 40,000 1,775
Tyco Labs 40,000 2,285
--------
10,897
--------
MEDICAL PRODUCTS & SERVICES-- 5.4%
Columbia/HCA Healthcare 45,000 1,777
Genesis Health Ventures* 46,000 1,438
Guidant 32,500 1,812
Johnson & Johnson 43,000 2,478
Medtronic 32,977 2,259
--------
9,764
--------
METALS & MINING -- 2.4%
Aluminum Company of America 25,000 1,725
Titanium Metals* 90,000 2,644
--------
4,369
--------
MISCELLANEOUS BUSINESS SERVICES -- 1.0%
Electronic Data Systems 38,000 1,748
--------
PETROLEUM & FUEL PRODUCTS -- 1.2%
Phillips Petroleum 51,000 2,250
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
PETROLEUM REFINING -- 5.4%
Amoco 35,000 $ 3,045
Chevron 21,000 1,394
Exxon 20,000 2,072
Mobil 25,000 3,281
--------
9,792
--------
PRINTING & PUBLISHING -- 1.2%
McGraw-Hill 45,000 2,239
--------
RAILROADS -- 0.9%
Union Pacific 28,000 1,680
--------
REAL ESTATE INVESTMENT TRUST -- 2.2%
Innkeepers USA Trust 148,578 1,969
Security Capital Industrial
Trust 94,400 2,006
--------
3,975
--------
RETAIL -- 6.2%
Albertson's 50,000 1,750
Gap Stores 64,000 1,840
Sears Roebuck 60,000 2,880
Wal-mart Stores 81,000 1,924
Warnaco Group, Class A 51,000 1,390
Wendys International 70,000 1,540
--------
11,324
--------
SEISMOLOGY -- 1.6%
Schlumberger 25,100 2,789
--------
SEMI-CONDUCTOR\INSTRUMENTS-- 5.2%
Altera* 36,000 1,557
Analog Devices* 97,666 2,820
Intel 22,000 3,569
Xilinx* 33,000 1,502
--------
9,448
--------
TELEPHONES & TELECOMMUNICATION -- 6.0%
Bellsouth 29,000 1,287
Lucent Technologies 45,000 2,441
MCI Communications 80,000 2,810
Motorola 23,000 1,570
Worldcom* 110,000 2,764
--------
10,872
--------
TRUCKING -- 0.9%
USFreightways 67,000 1,700
--------
TOTAL COMMON STOCKS
(Cost $138,245) 173,352
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
SHARES MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS -- 4.2%
SEI Daily Income Trust Money
Market Portfolio 3,728 $ 3,728
SEI Daily Income Trust Prime
Obligation Portfolio 3,937 3,937
--------
TOTAL CASH EQUIVALENTS
(Cost $7,665) 7,665
--------
TOTAL INVESTMENTS -- 99.8%
(Cost $145,910) 181,017
--------
OTHER ASSETS AND LIABILITIES, NET-- 0.2% 316
--------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 12,630,846
outstanding shares of beneficial interest 132,812
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 292,014 outstanding shares of
beneficial interest 3,632
Distributions in excess of net
investment income (14)
Accumulated net realized gain on investments 9,796
Net unrealized appreciation on investments 35,107
--------
TOTAL NET ASSETS-- 100.0% $181,333
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $14.03
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $14.04
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($14.04/95.5%) $14.70
=========
- --------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
PIE CHART DEPICTING THE ASSET ALLOCATION AS OF JANUARY 31, 1997 FOR THE
ACHIEVEMENT BALANCED FUND. THE BREAKDOWN IS AS FOLLOWS:
COMMON STOCKS 64.0%
U.S. GOVERNMENT SECURITIES 19.4%
CORPORATE SECURITIES 14.6%
OTHER 2.0%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 18.7%
U.S. Treasury Notes
8.125%, 02/15/98 $2,000 $ 2,048
7.875%, 04/15/98 2,500 2,562
7.000%, 04/15/99 2,500 2,553
8.000%, 08/15/99 2,000 2,091
7.750%, 11/30/99 2,500 2,607
7.750%, 02/15/01 2,500 2,635
7.875%, 08/15/01 2,500 2,657
7.500%, 05/15/02 2,500 2,635
6.250%, 02/15/03 2,500 2,488
7.250%, 05/15/04 2,500 2,617
7.875%, 11/15/04 2,500 2,713
7.500%, 02/15/05 2,000 2,126
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $28,578) 29,732
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 0.6%
Federal Home Loan Bank
6.490%, 09/08/97 1,000 1,004
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $992) 1,004
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
JANUARY 31, 1997
STATEMENT OF NET ASSETS
BALANCED FUND(CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 1.8%
Olympic Automobile Receivables Trust
Series 1995-E, Class A5
5.950%, 11/15/01 $ 1,325 $ 1,311
American Southwest Financial
Securities Series 1996-FHA1, Class A
7.000%, 11/25/38 1,500 1,500
--------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,834) 2,811
--------
CORPORATE BONDS -- 12.8%
FINANCE -- 8.3%
Aetna Services
7.125%, 08/15/06 1,500 1,498
Associates of
North America MTN
8.420%, 01/05/00 2,000 2,103
Banc One
7.250%, 08/01/02 1,500 1,534
BankAmerica MTN
7.125%, 05/12/05 2,000 2,007
Bear Stearns MTN
5.913%, 12/03/99 2,000 2,000
First Union
7.500%, 07/15/06 2,000 2,055
Ford Motor Credit
7.750%, 10/01/99 2,000 2,065
--------
13,262
--------
INDUSTRIAL -- 4.5%
Exxon Capital
7.875%, 08/15/97 2,000 2,024
Lucent Technologies
7.250%, 07/15/06 2,000 2,035
Philip Morris
7.250%, 09/15/01 2,000 2,032
Seagram YB
6.500%, 04/01/03 1,000 984
--------
7,075
--------
TOTAL CORPORATE BONDS
(Cost $19,995) 20,337
--------
COMMON STOCKS -- 63.5%
AGRICULTURE -- 1.2%
Dole Food 50,000 1,862
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
AEROSPACE -- 1.7%
Boeing 8,000 $ 857
Lockheed Martin 20,000 1,840
--------
2,697
--------
AUTOMOTIVE -- 0.4%
Ford Motor 22,000 707
--------
BANKS -- 3.9%
Banc One 24,400 1,107
BankAmerica 13,000 1,451
Barnett Banks of Florida 18,000 792
Chase Manhattan Bank 8,000 740
Citicorp 7,500 873
NationsBank 12,000 1,296
--------
6,259
--------
BEAUTY PRODUCTS -- 1.1%
Gillette 9,500 774
Procter & Gamble 9,000 1,040
--------
1,814
--------
CHEMICALS -- 1.6%
B.F. Goodrich 29,100 1,193
Monsanto 37,500 1,420
--------
2,613
--------
COMMUNICATIONS EQUIPMENT -- 1.1%
GTE 38,000 1,786
--------
COMPUTERS & SERVICES -- 2.2%
Cisco Systems* 18,491 1,290
Hewlett Packard 18,000 947
International Business
Machines 8,000 1,258
--------
3,495
--------
COMPUTER SOFTWARE -- 1.3%
Microsoft* 14,000 1,428
Oracle Systems* 18,000 700
--------
2,128
--------
CONSUMER PRODUCTS -- 0.5%
Nike 10,500 713
--------
DRUGS -- 5.5%
Abbott Laboratories 17,500 952
Eli Lilly 14,300 1,246
Genzyme* 60,000 1,680
Merck 13,000 1,180
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
DRUGS (CONTINUED)
Pfizer 16,000 $ 1,486
Schering Plough 14,000 1,059
Smithkline Beecham ADR 16,000 1,156
--------
8,759
--------
ELECTRICAL UTILITIES -- 1.8%
DTE Energy 40,000 1,255
Texas Utilities 40,000 1,620
--------
2,875
--------
ELECTRONICS -- 1.0%
Allen Group 67,435 1,652
--------
ENTERTAINMENT -- 1.1%
Viacom, Class B* 23,000 788
Walt Disney 13,000 952
--------
1,740
--------
ENVIRONMENTAL SERVICES -- 0.6%
WMX Technologies 25,000 916
--------
FINANCIAL SERVICES -- 2.3%
American Express 28,000 1,746
Federal National Mortgage
Association 20,500 810
Imperial Credit Industries* 51,276 1,122
--------
3,678
--------
FOOD, BEVERAGE & TOBACCO -- 3.0%
Campbell's Soup 10,000 830
Coca Cola 31,000 1,794
ConAgra 14,000 707
PepsiCo 40,000 1,395
--------
4,726
--------
GAS/NATURAL GAS -- 1.4%
Coastal 46,000 2,225
--------
HOME IMPROVEMENT PRODUCTS -- 0.6%
Armstrong World Industries 14,000 994
--------
HOTELS & LODGING -- 0.6%
Hilton Hotels 31,000 883
--------
INSURANCE -- 1.1%
American International Group 8,000 969
General Re 5,000 807
--------
1,776
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MACHINERY -- 3.7%
Case 20,000 $ 1,060
General Electric 25,000 2,575
Harnischfeger Industries 23,750 1,054
Tyco Labs 22,000 1,257
--------
5,946
--------
MEDICAL PRODUCTS & SERVICES-- 3.2%
Columbia/HCA Healthcare 23,500 928
Genesis Health Ventures* 22,000 687
Guidant 18,000 1,003
Johnson & Johnson 24,000 1,383
Medtronic 16,141 1,106
--------
5,107
--------
METALS & MINING -- 1.5%
Aluminum Company of America 16,000 1,104
Titanium Metals* 43,000 1,263
--------
2,367
--------
MISCELLANEOUS BUSINESS SERVICES -- 0.7%
Electronic Data Systems 24,000 1,104
--------
PETROLEUM & FUEL PRODUCTS -- 0.6%
Phillips Petroleum 23,000 1,015
--------
PETROLEUM REFINING -- 4.1%
Amoco 20,000 1,740
Chevron 13,000 863
Exxon 12,000 1,243
Mobil 20,000 2,625
--------
6,471
--------
PRINTING & PUBLISHING -- 1.0%
McGraw-Hill 30,000 1,493
--------
RAILROADS -- 0.6%
Union Pacific 16,000 960
--------
REAL ESTATE INVESTMENT TRUST -- 1.5%
Innkeepers USA Trust 89,142 1,181
Security Capital
Industrial Trust 55,927 1,188
--------
2,369
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
25
<PAGE>
JANUARY 31, 1997
STATEMENT OF NET ASSETS
BALANCED FUND(CONCLUDED)
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
RETAIL -- 4.4%
Albertson's 46,000 $ 1,610
Gap Stores 30,000 862
Sears Roebuck 40,000 1,920
Wal-mart Stores 36,000 855
Warnaco Group, Class A 31,000 845
Wendys International 40,000 880
--------
6,972
--------
SEISMOLOGY -- 0.4%
Schlumberger 5,000 556
--------
SEMI-CONDUCTORS/INSTRUMENTS-- 3.0%
Altera* 22,000 951
Analog Devices* 45,333 1,309
Intel 10,000 1,623
Xilinx* 21,000 956
--------
4,839
--------
TELEPHONES & TELECOMMUNICATION -- 4.0%
Bellsouth 22,000 976
Lucent Technologies 22,000 1,194
MCI Communications 46,000 1,616
Motorola 18,000 1,229
Worldcom* 55,000 1,382
--------
6,397
--------
TRUCKING -- 0.8%
USFreightways 50,000 1,269
--------
TOTAL COMMON STOCKS
(Cost $79,875) 101,163
--------
CASH EQUIVALENTS -- 1.9%
SEI Daily Income Trust Money
Market Portfolio 2,912 2,912
SEI Daily Income Trust Prime
Obligation Portfolio 144 144
--------
TOTAL CASH EQUIVALENTS
(Cost $3,056) 3,056
--------
TOTAL INVESTMENTS -- 99.3%
(Cost $135,330) 158,103
--------
OTHER ASSETS AND LIABILITIES, NET-- 0.7% 1,087
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 13,013,143 outstanding
shares of beneficial interest $132,364
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value) based on
239,405 outstanding shares of
beneficial interest 2,769
Undistributed net investment income 41
Accumulated net realized gain on investments 1,243
Net unrealized appreciation on investments 22,773
--------
TOTAL NET ASSETS-- 100.0% $159,190
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL CLASS $12.01
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE-- RETAIL CLASS A $12.00
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($12.00/95.5%) $12.57
========
- --------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
MTN -- MEDIUM TERM NOTE
YB -- YANKEE BOND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
INTERMEDIATE TERM BOND FUND
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
PIE CHART DEPICTING THE ASSET ALLOCATION AS OF JANUARY 31, 1997 FOR THE
ACHIEVEMENT INTERMEDIATE TERM BOND FUND. THE BREAKDOWN IS AS FOLLOWS:
CORPORATE SECURITIES 40.6%
U.S. GOVERNMENT SECURITIES 57.7%
CASH EQUIVALENTS 1.7%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 31.2%
FINANCE -- 17.0%
Aetna Services
6.750%, 08/15/01 $2,000 $ 2,005
American General Finance
7.250%, 04/15/00 1,000 1,019
Associates Corporation
of North
America MTN
6.810%, 08/03/01 1,000 1,007
7.540%, 04/14/04 1,000 1,034
BankAmerica
7.125%, 05/01/06 2,000 2,002
Bear Stearns MTN
7.740%, 02/06/97 1,000 1,000
Bell Atlantic Financial
6.625%, 11/30/97 1,000 1,007
Chase Manhattan
8.125%, 06/15/02 1,000 1,061
Citicorp
7.125%, 06/01/03 1,000 1,014
Commercial Credit
6.875%, 05/01/02 1,000 1,010
First Union
7.050%, 08/01/05 1,000 991
Ford Motor Credit
8.000%, 06/15/02 1,000 1,060
7.750%, 03/15/05 1,000 1,040
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
General Electric Capital MTN
6.840%, 04/26/98 $1,000 $ 1,011
GMAC MTN
7.250%, 05/15/03 1,000 1,019
Grand Metro
7.125%, 09/15/04 1,000 1,011
Household Finance
7.650%, 05/15/07 1,000 1,036
JP Morgan
7.250%, 01/15/02 1,000 1,025
NationsBank
7.625%, 04/15/05 1,000 1,032
Norwest
7.700%, 11/15/97 1,000 1,015
Society National Bank
7.250%, 06/01/05 1,000 1,011
--------
23,410
--------
INDUSTRIAL -- 13.5%
American Home Products
7.700%, 02/15/00 1,000 1,036
AT&T
6.750%, 04/01/04 1,000 997
CSR America
6.875%, 07/21/05 2,000 1,970
CSX Transportation
7.540%, 03/15/03 1,000 1,035
Dayton Hudson
7.500%, 07/15/06 2,000 2,035
Dow Capital BV YB
7.125%, 01/15/03 1,000 1,009
International Lease
7.000%, 06/01/98 1,000 1,013
J.C. Penney MTN
7.050%, 05/23/05 1,000 995
John Deere Capital
7.140%, 09/15/98 1,000 1,017
MCI Communications
7.125%, 01/20/00 1,000 1,019
Pacific Bell
7.000%, 07/15/04 1,000 1,010
Philip Morris
7.500%, 01/15/02 1,000 1,026
Ryder Systems
7.340%, 11/01/00 1,040 1,065
Sara Lee MTN
7.400%, 03/22/02 1,000 1,029
Soutwestern Bell Telephone MTN
6.250%, 03/12/01 1,150 1,134
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
27
<PAGE>
JANUARY 31, 1997
STATEMENT OF NET ASSETS
INTERMEDIATE TERM BOND FUND(CONCLUDED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------=
INDUSTRIAL (CONTINUED)
Waste Management
7.700%, 10/01/02 $1,000 $ 1,045
--------
18,435
--------
UTILITY -- 0.7%
Union Electric
6.750%, 10/15/99 1,000 1,010
--------
TOTAL CORPORATE BONDS
(Cost $42,959) 42,855
--------
U.S. TREASURY OBLIGATIONS -- 49.4%
U.S. Treasury Bond
7.625%, 02/15/07 1,000 1,046
U.S. Treasury Notes
7.375%, 11/15/97 1,000 1,013
7.250%, 02/15/98 4,000 4,061
6.250%, 06/30/98 2,000 2,013
6.125%, 08/31/98 2,000 2,009
7.125%, 10/15/98 4,000 4,080
6.500%, 04/30/99 2,000 2,022
6.750%, 05/31/99 2,000 2,032
6.750%, 06/30/99 5,000 5,081
6.875%, 07/31/99 4,000 4,077
7.125%, 09/30/99 4,000 4,104
7.750%, 01/31/00 1,500 1,567
7.125%, 02/29/00 4,000 4,112
6.750%, 04/30/00 3,000 3,052
6.250%, 08/31/00 8,000 8,017
6.125%, 09/30/00 1,000 998
7.750%, 02/15/01 2,500 2,635
6.375%, 03/31/01 2,000 2,009
7.875%, 08/15/01 1,500 1,594
7.500%, 11/15/01 1,000 1,049
6.250%, 02/15/03 3,000 2,986
7.250%, 08/15/04 5,000 5,235
7.500%, 02/15/05 1,000 1,063
6.500%, 08/15/05 1,000 1,000
6.875%, 05/15/06 1,000 1,024
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $67,982) 67,879
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 7.4%
Federal Home Loan Bank
7.190%, 04/27/01 1,000 1,028
7.280%, 07/25/01 1,000 1,033
7.390%, 08/22/01 1,000 1,038
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Federal National Mortgage
Association MTN
7.090%, 10/14/97 $1,000 $ 1,009
6.625%, 04/18/01 1,000 1,007
7.520%, 08/24/05 1,000 1,004
7.500%, 10/26/06 2,000 1,999
Federal National Mortgage
Association
7.050%, 12/10/98 1,000 1,019
6.850%, 04/05/04 1,000 1,015
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $10,247) 10,152
--------
ASSET-BACKED SECURITIES -- 2.9%
Olympic Automobile Receivables
Trust, Series 1995-E A5
5.950%, 11/15/01 2,000 1,979
Olympic Automobile Receivables
Trust, Series 1996-B A5
6.900%, 02/15/04 2,000 2,032
--------
TOTAL ASSET-BACKED SECURITIES
(Cost $4,011) 4,011
--------
MORTGAGE-BACKED SECURITIES -- 5.9%
American Southwest Financial
Securities, Series 1996-FHA1 A2
7.000%, 11/25/38 3,000 3,001
Donaldson Lufkin Jenrette Mortgage,
Series 1996-CF2 A1B (B)
7.290%, 11/12/21 3,000 3,037
Nomura Asset Securities, Series
1994-MD1 A1B (A)
7.521%, 03/15/18 2,000 2,060
--------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $8,137) 8,098
--------
CASH EQUIVALENTS -- 1.7%
SEI Daily Income Trust Money
Market Portfolio 2,241 2,241
SEI Daily Income Trust Prime
Obligation Portfolio 55 55
--------
TOTAL CASH EQUIVALENTS
(Cost $2,296) 2,296
--------
TOTAL INVESTMENTS -- 98.5%
(Cost $135,632) 135,291
--------
OTHER ASSETS AND LIABILITIES, NET-- 1.5% 2,084
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 12,986,338 outstanding
shares of beneficial interest $137,158
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value) based
on 262,502 outstanding shares of
beneficial interest 2,725
Accumulated net realized loss on investments (2,167)
Net unrealized depreciation on investments (341)
--------
TOTAL NET ASSETS -- 100.0% $137,375
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.37
========
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE -- RETAIL CLASS A $10.40
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.40/96.5%) $10.78
========
- --------------------------------------------------------------------------------
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 JANUARY 31, 1997. THE DATE SHOWN IS THE NEXT
RESET DATE.
(B) -- PRIVATE PLACEMENT
- --------------------------------------------------------------------------------
SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
PIE CHART DEPICTING THE ASSET ALLOCATION AS OF JANUARY 31, 1997 FOR THE
ACHIEVEMENT SHORT TERM BOND FUND. THE BREAKDOWN IS AS FOLLOWS:
CORPORATE SECURITIES 69.4%
U.S. GOVERNMENT SECURITIES 28.1%
CASH EQUIVALENTS 2.5%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 65.4%
FINANCE -- 36.5%
American General Finance MTN
7.370%, 03/14/97 $1,000 $ 1,002
American General Finance
7.150%, 05/15/97 1,000 1,004
7.000%, 10/01/97 1,000 1,008
Associates of North America
6.250%, 03/15/99 1,000 1,001
6.375%, 08/15/99 1,000 1,003
Barnett Bank MTN
6.250%, 07/28/98 1,000 1,003
Bear Stearns MTN
7.740%, 02/06/97 1,000 1,000
Bell Atlantic Financial Services Note
6.625%, 11/30/97 2,000 2,013
Chrysler Financial MTN
7.380%, 03/17/97 1,000 1,002
CIT Group Holdings MTN
6.625%, 09/13/99 1,400 1,409
Comerica Bank
6.750%, 05/12/98 1,500 1,514
Ford Motor Credit
5.625%, 01/15/99 1,000 990
Household Bank FSB
6.250%, 04/01/99 1,000 998
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
29
<PAGE>
JANUARY 31, 1997
STATEMENT OF NET ASSETS
SHORT TERM BOND FUND (CONCLUDED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
FINANCE (CONTINUED)
Household Finance MTN
6.760%, 04/25/97 $1,000 $ 1,003
MBNA American Bank N.A MTN
6.650%, 06/17/97 1,000 1,004
Morgan Stanley Group MTN
6.375%, 01/18/00 1,000 1,000
NationsBank
6.625%, 01/15/98 2,000 2,016
Old Kent Bank
7.100%, 03/07/97 1,000 1,001
Society Bank (Cleveland)
7.125%, 04/15/97 1,000 1,003
Travelers/Aetna Property Casualty
6.750%, 09/01/99 1,000 1,009
US Bancorp MTN
7.380%, 03/03/97 1,000 1,001
-------
23,984
-------
INDUSTRIAL -- 18.3%
CSC Enterprises
6.800%, 04/15/99 1,000 1,009
CSX Transport
5.740%, 03/15/99 1,000 986
IBM
6.375%, 11/01/97 2,000 2,008
Ingersoll Rand MTN
6.450%, 08/28/98 1,000 1,006
6.510%, 08/09/99 1,000 1,005
International Lease Finance
6.500%, 07/15/97 1,000 1,004
International Lease Finance MTN
7.250%, 09/01/97 1,000 1,009
John Deere Capital
7.200%, 05/15/97 1,000 1,004
PepsiCo
6.875%, 05/15/97 1,000 1,003
WMX Technologies
7.125%, 03/22/97 2,000 2,003
-------
12,037
-------
UTILITY -- 10.6%
Delmarva Power & Light
6.375%, 09/01/97 1,000 1,003
Georgia Power
6.125%, 09/01/99 2,000 1,990
Houston Power & Light
7.625%, 03/01/97 1,000 1,001
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Portland General Electric MTN
6.750%, 09/15/97 $1,000 $ 1,005
5.650%, 05/15/98 1,000 994
Southern California Gas
5.250%, 03/01/98 1,000 993
-------
6,986
-------
TOTAL CORPORATE BONDS
(Cost $43,112) 43,007
-------
U.S. TREASURY OBLIGATIONS -- 26.2%
U.S. Treasury Notes
7.250%, 02/15/98 2,000 2,030
7.125%, 10/15/98 2,000 2,040
6.375%, 01/15/99 2,000 2,018
6.500%, 04/30/99 3,000 3,033
6.750%, 05/31/99 2,000 2,032
6.875%, 07/31/99 4,000 4,077
6.875%, 08/31/99 2,000 2,040
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $17,379) 17,270
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.6%
Federal Home Loan Bank
6.710%, 04/21/97 1,000 1,003
Federal National Mortgage
Association
6.450%, 10/14/99 2,000 1,999
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $3,000) 3,002
-------
CASH EQUIVALENTS -- 2.5%
SEI Daily Income Trust Money
Market Portfolio 1,606 1,606
SEI Daily Income Trust Prime
Obligation Portfolio 42 42
-------
TOTAL CASH EQUIVALENTS
(Cost $1,648) 1,648
-------
TOTAL INVESTMENTS -- 98.7%
(Cost $65,139) 64,927
-------
OTHER ASSETS AND LIABILITIES, NET -- 1.3% 844
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 6,527,739 outstanding
shares of beneficial interest $ 67,613
Portfolio Shares of Retail Class A
(unlimited authorization -- no
par value) based on 44,291
outstanding shares of beneficial interest 445
Accumulated net realized loss on investments (2,075)
Net unrealized depreciation on investments (212)
-------
TOTAL NET ASSETS -- 100.0% $65,771
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.01
=======
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $10.00
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.00/98.5%) $10.15
=======
- --------------------------------------------------------
MTN -- MEDIUM TERM NOTE
- --------------------------------------------------------------------------------
SHORT TERM MUNICIPAL
BOND FUND
- --------------------------------------------------------------------------------
PIE CHART DEPICTING THE ASSET ALLOCATION AS OF JANUARY 31, 1997 FOR THE
ACHIEVEMENT SHORT TERM MUNICIPAL BOND FUND. THE BREAKDOWN IS AS FOLLOWS:
GENERAL OBLIGATIONS 63.5%
REVENUE BONDS 34.8%
CASH EQUIVALENTS 1.7%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.5%
ALABAMA -- 4.8%
Alabama State, Water Pollution
Control Authority RB AMBAC
5.250%, 08/15/00 $500 $ 513
Mobile, Public Improvements,
Pre-Refunded 08/15/00 @
102 GO AMBAC
7.125%, 08/15/10 500 553
-------
1,066
-------
ARIZONA -- 2.3%
Arizona State, Transportation
Board RB AMBAC
5.000%, 07/01/99 500 511
-------
ARKANSAS -- 4.6%
Arkansas State, Corrections
Facility RB MBIA
4.400%, 10/01/00 500 505
Hot Springs, Civic Center
Project RB FSA
4.100%, 12/01/99 500 501
-------
1,006
-------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
31
<PAGE>
JANUARY 31, 1997
STATEMENT OF NET ASSETS
SHORT TERM MUNICIPAL BOND FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
COLORADO -- 2.3%
Gunnison Watershed, School
District #RE-001J GO MBIA STAID
5.000%, 12/01/99 $500 $ 512
------
CONNECTICUT -- 2.3%
Connecticut State, Special Tax
Assessment RB AMBAC
4.250%, 05/15/98 500 503
------
HAWAII -- 2.3%
Honolulu, City & County,
Series A GO MBIA
4.250%, 11/01/99 500 502
------
IDAHO -- 2.3%
City of Boise, Cash Flow
Management RB
4.500%, 02/01/00 500 503
------
ILLINOIS -- 4.7%
Du Page, Water Commission,
Refunding GO
5.850%, 03/01/00 500 523
Glenview, Miscellaneous Improvements,
Callable 09/01/98 @ 100 GO
5.500%, 12/01/98 500 512
------
1,035
------
INDIANA -- 4.8%
Indiana State, Kokomo Center School
Building Corp RB AMBAC STAID
6.750%, 07/15/00 500 536
Indianapolis, Telecommunications
Improvements, Series C RB
6.400%, 02/01/99 500 524
------
1,060
------
IOWA -- 2.3%
Sioux City, Public Improvements GO
4.800%, 06/01/00 500 507
------
KENTUCKY -- 4.5%
Kenton County, Parking Facility
Improvements RB
4.700%, 12/01/00 500 503
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Kentucky State, Property & Buildings
Commission, Refunding RB
4.100%, 09/01/98 $500 $ 500
------
1,003
------
MARYLAND -- 2.3%
Prince George County, Public
Improvements, Series A GO MBIA
5.100%, 03/01/00 500 511
------
MINNESOTA -- 4.6%
Owatonna, Independent School
District #761 GO
5.100%, 02/01/00 500 511
Saint Paul, Capital Improvements,
Series B GO
4.750%, 03/01/99 500 507
------
1,018
------
NEBRASKA -- 2.3%
Douglass County, School District
#017, Millard, GO
4.300%, 09/15/98 500 504
------
NEVADA -- 4.8%
Washoe County, Airport Authority
RB MBIA
5.150%, 07/01/99 500 508
Washoe County, Public Improvements
GO MBIA
8.250%, 06/01/00 500 557
------
1,065
------
OHIO -- 4.6%
Cincinnati, Water Utility
Improvements GO
5.150%, 12/01/98 500 512
Ohio State, Building Authority RB
4.100%, 04/01/99 500 497
------
1,009
------
OKLAHOMA -- 4.6%
Claremore, Public Works
Authority RB MBIA
4.400%, 06/01/00 500 502
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
32
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
OKLAHOMA (CONTINUED)
Grand River, Grand River
Dam Authority RB
5.000%, 06/01/99 $500 $ 507
------
1,009
------
OREGON -- 4.6%
Jackson County, School
District #549C GO
4.500%, 06/01/99 500 506
Portland, Community College GO
4.500%, 01/15/99 500 503
------
1,009
------
SOUTH CAROLINA -- 2.3%
Pickens County, School
District GO FGIC
5.250%, 05/01/00 500 513
------
TENNESSEE -- 4.6%
Chattanooga, Public Improvements GO
4.900%, 02/01/99 500 507
Williamson County, Public
Improvements GO
4.600%, 10/01/00 500 506
------
1,013
------
TEXAS -- 7.2%
Amarillo, Independent School
District GO PSFG
7.000%, 02/01/00 500 538
Fort Worth, Refunding GO
4.900%, 03/01/99 500 508
North East Independent School
District GO PSFG
7.000%, 02/01/00 500 538
------
1,584
------
VIRGINIA -- 4.6%
Portsmouth, Public Improvements,
Refunding GO
5.500%, 11/01/98 500 514
Richmond, Public Improvements,
Series A Refunding GO STAID
4.700%, 01/15/00 500 504
------
1,018
------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
WASHINGTON -- 4.6%
Tacoma, Series A Refunding GO
5.300%, 07/01/99 $500 $ 513
Thurston County, School
District #111,
Olympia, Refunding GO FGIC
5.250%, 12/01/98 500 513
-------
1,026
-------
WISCONSIN -- 7.0%
Brookfield, Sewer Improvements GO
5.250%, 12/01/00 500 515
Milwaukee, Sewer Improvements,
Series A GO
6.500%, 10/01/98 500 521
New Berlin, Sewer Improvements,
Series C GO
4.250%, 12/01/00 500 499
-------
1,535
-------
WYOMING -- 2.2%
Platte County, Polution Control RB
4.000%, 01/01/98 500 499
-------
TOTAL MUNICIPAL BONDS
(Cost $21,376) 21,521
-------
CASH EQUIVALENT -- 1.7%
SEI Institutional Tax
Free Portfolio 375 375
-------
TOTAL CASH EQUIVALENT
(Cost $375) 375
-------
TOTAL INVESTMENTS -- 99.2%
(Cost $21,751) 21,896
-------
OTHER ASSETS AND LIABILITIES, NET -- 0.8% 178
-------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
33
<PAGE>
JANUARY 31, 1997
STATEMENT OF NET ASSETS
SHORT TERM MUNICIPAL BOND FUND (CONCLUDED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 2,167,172 outstanding
shares of beneficial interest $21,611
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value)
based on 22,589 outstanding shares of
beneficial interest 231
Undistributed net investment income 17
Accumulated net realized gain on investments 70
Net unrealized appreciation on investments 145
-------
TOTAL NET ASSETS -- 100.0% $22,074
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.08
=======
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $10.10
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.10/98.5%) $10.25
=======
- --------------------------------------------------------------------------------
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC -- FEDERAL GUARANTY INSURANCE CORPORATION
FSA -- FINANCIAL SECURITY ASSURANCE
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 DEPICTING THE ASSET ALLOCATION AS OF JANUARY 31, 1997 FOR THE
ACHIEVEMENT IDAHO MUNICIPAL BOND FUND. THE BREAKDOWN IS AS FOLLOWS:
GENERAL OBLIGATIONS 72.3%
REVENUE BONDS 23.2%
CASH EQUIVALENTS 4.5%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 94.2%
IDAHO -- 93.4%
Ada & Canyon Counties, Joint
School District #2,
Meridian, GO
5.100%, 07/30/04 $250 $ 256
5.500%, 07/30/14 500 504
5.625%, 07/30/16 500 505
Bannock & Caribou Counties,
Joint School District #21,
Marsh VY, GO
5.300%, 09/01/04 100 103
Bannock County, GO
5.100%, 09/01/01 100 102
Bingham County, School District
#055, Blackfoot, GO MBIA
5.650%, 08/01/15 350 356
Blaine County, GO CGIC
4.400%, 08/01/07 150 143
Boise City, Independent School
District #1, GO AMBAC
5.400%, 07/30/14 500 499
Boise City, RB
5.100%, 02/01/11 500 489
Boise State, Student Union
& Housing
Systems, RB MBIA
4.500%, 04/01/03 100 100
4.750%, 04/01/05 200 202
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
34
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Boise, Independent School
District, GO
5.375%, 07/30/10 $ 250 $ 252
5.500%, 07/30/16 1,250 1,248
Bonneville & Bingham Counties,
School District #93, Refunding
GO FGIC
5.750%, 07/30/07 500 533
5.500%, 07/30/10 850 871
Bonneville County, Jail Bonds, GO FSA
5.500%, 08/01/16 590 586
Bonneville County, School
District #91, Idaho Falls, GO
5.200%, 08/01/05 500 509
5.450%, 08/01/08 200 203
5.500%, 08/01/09 300 304
Canyon County, School
District #132, GO FSA
5.400%, 07/30/11 200 202
5.450%, 07/30/14 470 469
Canyon County, School
District #131, Nampa, GO MBIA
5.500%, 07/30/11 500 506
5.500%, 07/30/12 500 502
Canyon County, School
District #132, GO CGIC
5.400%, 07/30/12 400 400
5.450%, 07/30/15 900 899
Canyon County, School
District #134, Middleton,
GO FGIC
4.500%, 07/31/11 500 461
Canyon County, School
District #139, GO
5.200%, 08/01/11 320 316
5.200%, 08/01/12 110 108
5.000%, 08/01/13 425 405
Caribou & Bonneville Counties,
School District #150, GO
5.500%, 09/01/06 395 403
Cassia & Twin Falls Counties,
Joint School District #151, GO FGIC
5.375%, 08/01/16 1,000 980
5.375%, 08/01/14 1,000 988
City of Sun Valley, GO
5.050%, 08/01/08 195 195
Coeur D' Alene, GO AMBAC
5.350%, 03/01/11 240 241
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Elmore County, School District #193,
Mountain Home, GO AMBAC
5.000%, 07/31/10 $ 400 $ 390
4.500%, 07/31/12 500 453
Fremont & Madison Counties,
School District #215,
St. Anthony, GO CGIC
5.600%, 08/01/14 125 126
5.600%, 08/01/15 765 768
Gem & Boise Counties, Joint School
District #221, Emmit, GO AMBAC
4.700%, 08/01/01 100 102
Gooding & Lincoln Counties, Joint
School District #231, GO CGIC
6.300%, 02/01/15 535 573
Gooding & Lincoln Counties, Joint
School District #231, GO FSA
6.250%, 02/01/12 130 139
Gooding County, School District #232,
Wendell, GO AMBAC
5.000%, 08/01/11 100 97
Idaho Falls, Refunding Electric, Zero
Coupon Bond, GO FGIC
0.000%, 04/01/07 500 299
0.000%, 04/01/11 500 233
0.000%, 04/01/12 500 216
0.000%, 04/01/13 500 204
0.000%, 04/01/14 180 70
Idaho Health Facility Authority,
St. Alphonsus Regional
Medical Center, RB
6.100%, 12/01/07 100 107
Idaho Housing and Finance
Association, RB AMT
6.150%, 01/01/28 1,000 994
Idaho State Building Authority, RB
5.800%, 09/01/05 100 105
Idaho State Building Authority,
Refunding, RB MBIA
5.600%, 09/01/05 100 106
Idaho State Health Facility Authority,
Magic Valley Regional Medical
Center, RB AMBAC
5.200%, 12/01/04 500 523
Idaho State Health Facility Authority,
St. Josephs Regional Medical
Center, RB MBIA
5.000%, 07/01/07 500 506
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
35
<PAGE>
JANUARY 31, 1997
STATEMENT OF NET ASSETS
IDAHO MUNICIPAL BOND FUND (CONCLUDED)
- -------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO (CONTINUED)
Idaho State Tax Anticipation Notes
4.500%, 06/30/97 $ 600 $ 602
Idaho State University, Student
Facility Fee, RB
4.900%, 04/01/03 140 144
Jefferson County, School
District #253, GO MBIA
5.500%, 08/01/15 240 241
Jerome County, School
District #262, GO AMBAC
5.150%, 08/01/04 200 204
Kootenai County, Consolidated
Free Library District, GO CGIC
5.000%, 08/01/06 160 162
Kootenai County, School
District #272, GO
4.700%, 08/01/06 400 395
Latah & Clearwater Counties,
School District #286, GO AMBAC
5.200%, 02/01/04 100 103
5.500%, 02/01/07 200 206
5.600%, 02/01/08 200 206
Madison County, GO CGIC
5.400%, 08/01/15 420 420
Madison County, School District
#321, Rexburg, GO AMBAC
5.300%, 02/01/03 200 206
Mccall, Water Revenue Bonds
Parity Lien FSA
5.850%, 03/01/16 500 513
5.750%, 03/01/07 215 228
Meridian, Idaho, GO FSA
5.000%, 08/01/15 290 274
Minidoka & Jerome Counties,
School District #331, GO MBIA
5.000%, 02/01/01 100 102
Nez Perce County, Pollution
Control, RB
6.000%, 10/01/24 1,000 998
Oneida County, School
District #351, GO MBIA
5.000%, 07/31/15 375 355
Payette & Washington Counties,
Joint School District #371,
GO AMBAC
4.900%, 10/01/03 500 510
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Payette County, School
District #372, GO ASSETG
6.750%, 07/31/09 $ 100 $ 110
Post Falls, Sewer Revenue,
RB AMBAC
4.900%, 08/01/05 200 204
Southern Idaho Regional Solid
Waste Project COP
5.450%, 11/01/13 500 502
Teton County, School
District #401, GO FSA
5.500%, 08/01/10 400 408
Twin Falls & Cassia County,
Joint School District #418,
GO MBIA
5.450%, 08/01/15 145 146
Twin Falls County, Class A, School
District #413, GO AMBAC
5.250%, 07/30/09 200 201
5.250%, 07/30/13 400 397
5.250%, 07/30/14 420 417
Twin Falls County, School
District #415, GO ASSETG
5.500%, 08/01/15 195 196
University of Idaho, Refunding
& Improvements Facility Fee, RB
5.100%, 04/01/07 200 203
University of Idaho, Refunding
Student Building Fee, RB
5.350%, 04/01/10 250 249
University of Idaho, Student Fee
Telecommunications, RB FSA
5.850%, 04/01/11 500 523
Washington County, School
District #431, GO AMBAC
5.300%, 08/01/04 200 207
5.400%, 08/01/05 100 104
5.500%, 08/01/06 200 207
-------
30,794
-------
PUERTO RICO -- 0.8%
University of Puerto Rico, Zero
Coupon Bond, RB MBIA
0.000%, 06/01/11 530 250
-------
TOTAL MUNICIPAL BONDS
(Cost $30,674) 31,044
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
36
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT -- 4.4%
SEI Institutional Tax
Free Portfolio 1,440 $ 1,440
-------
TOTAL CASH EQUIVALENT
(Cost $1,440) 1,440
-------
TOTAL INVESTMENTS -- 98.6%
(Cost $32,114) 32,484
-------
OTHER ASSETS AND LIABILITIES, NET -- 1.4% 478
-------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 2,641,167 outstanding
shares of beneficial interest 26,999
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value) based
on 524,426 outstanding shares of
beneficial interest 5,514
Accumulated net realized gain on investments 79
Net unrealized appreciation on investments 370
-------
TOTAL NET ASSETS -- 100.0% $32,962
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.41
=======
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $10.44
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.44/96%) $10.88
=======
- ---------------------------------------------------------
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT -- ALTERNATIVE MINIMUM TAX
ASSETG -- ASSET GUARANTY
CGIC -- CAPITAL GUARANTEE INSURANCE CORPORATION
COP -- CERTIFICATE OF PARTICIPATION
FGIC -- FEDERAL GUARANTY INSURANCE CORPORATION
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
- --------------------------------------------------------------------------------
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
PIE CHART DEPICTING THE ASSET ALLOCATION AS OF JANUARY 31, 1997 FOR THE
ACHIEVEMENT MUNICIPAL BOND FUND. THE BREAKDOWN IS AS FOLLOWS:
GENERAL OBLIGATIONS 61.3%
REVENUE BONDS 36.2%
CASH EQUIVALENTS 2.5%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 96.0%
ALABAMA -- 3.5%
Birmingham, Alabama, GO
5.700%, 06/01/15 $1,000 $ 1,004
Huntsville, Alabama, GO
5.500%, 02/01/11 1,000 1,006
-------
2,010
-------
CALIFORNIA -- 5.0%
California State, Public Works
Board Lease RB MBIA
5.625%, 11/01/19 1,000 984
Sacramento County, California
Sanitation District Financing
Authority RB
5.125%, 12/01/13 1,000 944
University California, Multiple
Purpose Projects RB AMBAC
5.250%, 09/01/16 1,000 947
-------
2,875
-------
COLORADO -- 3.3%
Arapahoe County, School
District No. 006 GO STAID
5.300%, 12/01/12 1,000 987
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
37
<PAGE>
JANUARY 31, 1997
STATEMENT OF NET ASSETS
MUNICIPAL BOND FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
COLORADO (CONTINUED)
Gunnison Watershed, GO MBIA
5.000%, 12/01/15 $1,000 $ 928
-------
1,915
-------
FLORIDA -- 5.2%
Florida State, GO
5.700%, 06/01/08 1,000 1,038
Jacksonville, Special Obligation
Florida Electric Authority RB
5.375%, 10/01/10 1,000 1,002
Orlando, Utilities Commision
Water & Electric RB
5.250%, 10/01/14 1,000 956
-------
2,996
-------
GEORGIA -- 1.7%
Griffin Spalding County, GO FSA
5.550%, 02/01/16 1,000 984
-------
HAWAII -- 1.8%
Honolulu, GO
5.000%, 10/01/02 1,000 1,021
-------
ILLINOIS -- 1.8%
Illinois State, GO MBIA
5.500%, 02/01/04 1,000 1,041
-------
INDIANA -- 5.1%
Indiana State, Common School
Fund Adv Pur Fdg RB AMBAC
5.500%, 08/01/11 1,000 999
Indiana State, Transportation
Finance Authority Highway RB
5.250%, 06/01/08 1,000 1,012
Lafayette Indiana, Redevelopement
Authority Economic Developement
Lease Rental RB MBIA
5.250%, 02/01/16 1,000 944
-------
2,955
-------
KANSAS -- 3.6%
Garnett, Water Utility RB MBIA
5.750%, 10/01/07 1,000 1,039
Kansas State, Department of
Transportation RB
5.400%, 03/01/08 1,000 1,019
-------
2,058
-------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS -- 1.8%
Worcester, Municipal Purpose
Loans, GO MBIA
5.750%, 10/01/14 $1,000 $ 1,014
-------
MICHIGAN -- 5.2%
Kalamazoo, Downtown
Development, GO
5.500%, 04/01/13 1,000 1,001
Lake Orion, Community
School District, GO AMBAC
5.800%, 05/01/15 1,000 1,015
Ypsilanti, School District,
GO FGIC
5.750%, 05/01/20 1,000 997
-------
3,013
-------
MINNESOTA -- 5.0%
Osseo, School District, GO FGIC
5.400%, 02/01/10 1,000 1,003
Southern Minnesota, Municipal
Power Agency/Supply Systems RB
5.000%, 01/01/12 1,000 929
Wayzata, Independant School
District, GO
5.500%, 02/01/17 1,000 989
-------
2,921
-------
MISSISSIPPI -- 1.8%
Rankin County, School
District, GO MBIA
5.500%, 02/01/05 1,000 1,039
-------
NEVADA -- 3.4%
Clark Cnty, GO MBIA
5.250%, 06/01/16 1,000 944
Nevada State, Municipal
Project 52, GO
6.000%, 05/15/24 1,000 1,025
-------
1,969
-------
NEW JERSEY -- 1.7%
New Jersey State, Transportation
RB MBIA
5.500%, 06/15/12 1,000 1,005
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NEW MEXICO -- 3.4%
Bernalillo County, Gross
Receipts Tax RB
5.750%, 04/01/21 $1,000 $ 984
Sante Fe, Utility RB AMBAC
5.450%, 06/01/14 1,000 986
-------
1,970
-------
NEW YORK -- 1.7%
Brookhaven, GO FGIC
5.500%, 10/01/13 1,000 989
-------
NORTH CAROLINA -- 1.7%
University of North Carolina,
Charlotte Student Activity
Center RB MBIA
5.500%, 06/01/16 1,000 985
-------
OHIO -- 1.7%
Greater Cleveland, Ohio Transit
Authority GO FGIC
5.650%, 12/01/16 1,000 990
-------
OREGON -- 5.2%
Jackson County, GO
5.375%, 06/01/10 1,000 998
Lincoln County, GO FGIC
5.600%, 06/15/10 1,000 1,031
Marion County, GO FGIC
5.650%, 11/01/15 1,000 1,007
-------
3,036
-------
SOUTH CAROLINA -- 1.7%
South Carolina State, University
of South Carolina RB MBIA
5.750%, 06/01/26 1,000 988
-------
TENNESSEE -- 3.4%
Shelby County, GO
5.600%, 04/01/12 1,000 1,021
Weakley County, GO FGIC
5.200%, 05/01/16 1,000 956
-------
1,977
-------
TEXAS -- 6.9%
Austin, Utility RB MBIA
5.750%, 11/15/14 1,000 1,005
Bexar County, GO
5.250%, 06/15/13 1,000 973
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Pasadena, GO FGIC
5.600%, 02/15/05 $1,000 $ 1,044
San Antonio, GO
5.250%, 08/01/14 1,000 967
-------
3,989
-------
UTAH -- 1.6%
Utah State, Associated Power Systems
Saint George Project RB AMBAC
5.375%, 12/01/19 1,000 948
-------
VERMONT -- 1.7%
Vermont State, Municipal Bond
Bank RB AMBAC
5.625%, 12/01/15 1,000 996
-------
VIRGINIA -- 5.1%
Fairfax County, Water Authority RB
5.750%, 04/01/29 1,000 986
James City & County, GO STAID
5.250%, 12/15/15 1,000 960
Norfolk, GO
5.200%, 06/01/07 1,000 1,011
-------
2,957
-------
WASHINGTON -- 8.5%
King County, GO
5.250%, 01/01/17 1,000 954
4.400%, 12/01/02 1,000 991
Seattle, GO
5.650%, 01/01/20 1,000 994
Snohomish County, School
District GO
5.750%, 12/01/13 1,000 1,006
Spokane County, School
District GO
5.200%, 12/01/06 1,000 1,010
-------
4,955
-------
WISCONSIN -- 1.8%
Wisconsin State, GO
5.500%, 11/01/05 1,000 1,051
-------
WYOMING -- 1.7%
Wyoming State, Community
Development Authority RB
6.000%, 06/01/23 1,000 1,001
-------
TOTAL MUNICIPAL BONDS
(Cost $55,634) 55,648
-------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
39
<PAGE>
JANUARY 31, 1997
STATEMENT OF NET ASSETS
MUNICIPAL BOND FUND (CONCLUDED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT -- 2.4%
SEI Institutional Tax
Free Portfolio 1,409 $ 1,409
-------
TOTAL CASH EQUIVALENT
(Cost $1,409) 1,409
-------
TOTAL INVESTMENTS -- 98.4%
(Cost $57,043) 57,057
-------
OTHER ASSETS AND LIABILITIES, NET -- 1.6% 905
-------
NET ASSETS:
Portfolio Shares of Institutional
Class (unlimited authorization -- no
par value) based on 5,295,925
outstanding shares of beneficial interest 53,047
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value)
based on 488,928 outstanding
shares of beneficial interest 4,891
Accumulated net realized gain on investments 10
Net unrealized appreciation on investments 14
-------
TOTAL NET ASSETS -- 100.0% $57,962
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.02
=======
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $10.01
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.01/96%) $10.43
=======
- ---------------------------------------------------------
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC -- FEDERAL GUARANTY INSURANCE CORPORATION
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
STAID -- STATE AID WITHHOLDING
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
40
<PAGE>
FOR THE YEAR ENDED JANUARY 31, 1997 THE ACHIEVEMENT FUNDS TRUST
Statements of Operations (000)
- --------------------------------------------------------------------------------
<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(1)
===== ======= ========== ==== ======== ======== ==========
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Dividend Income $ 2,462 $ 1,397 $ -- $ -- $ -- $ -- $ --
Interest Income 353 4,336 8,386 4,800 1,240 1,536 730
------- ------- ------- ------ ------ ------- -------
Total Income 2,815 5,733 8,386 4,800 1,240 1,536 730
------- ------- ------- ------ ------ ------- -------
EXPENSES:
Administrative Fees 328 301 248 142 100 100 27
Waiver of Administrative Fees -- -- -- -- (45) (40) --
Investment Advisory Fees 1,213 1,115 744 427 163 179 82
Waiver of Investment
Advisory Fees (280) (262) (244) (150) (94) (102) (44)
Custodian ransfer Agent Fees 57 56 54 48 44 45 11
Professional Fees 48 41 37 17 6 8 8
Pricing Fees 3 3 3 2 2 6 --
Registration & Filing Fees 38 36 38 11 14 14 5
Printing Fees 33 27 25 11 4 6 10
Trustee Fees 7 7 6 3 1 1 1
Distribution Fees (2) 8 6 4 1 1 7 1
Amortization of Deferred
Organizational Costs 26 30 17 20 8 6 1
Miscellaneous Fees 6 5 4 2 2 3 2
------- ------- ------- ------ ------ ------- -------
Total Expenses 1,487 1,365 936 534 206 233 104
------- ------- ------- ------ ------ ------- -------
Net Income 1,328 4,368 7,450 4,266 1,034 1,303 626
------- ------- ------- ------ ------ ------- -------
Net Realized Gain (Loss) on
Investments 20,025 9,456 (558) (40) 130 151 10
Net Change in Unrealized
Appreciation/(Depreciation)
of Investments 9,415 3,898 (4,069) (1,241) (441) (1,032) 14
------- ------- ------- ------ ------ ------- -------
Net Realized and Unrealized Gain
(Loss) on Investments 29,440 13,354 (4,627) (1,281) (311) (881) 24
------- ------- ------- ------ ------ ------- -------
Increase in Net Assets Resulting
from Operations $30,768 $17,722 $ 2,823 $2,985 $ 723 $ 422 $ 650
======= ======= ======= ====== ====== ======= ======
<FN>
(1) COMMENCED OPERATIONS ON NOVEMBER 1, 1996.
(2) 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.
41
<PAGE>
Statements of Changes in Net Assets (000)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
EQUITY BALANCED INTERMEDIATE
FUND FUND TERM BOND FUND
================ =================== ===============
2/1/96 2/1/95 2/1/96 2/1/95 2/1/96 2/1/95
TO TO TO TO TO TO
1/31/97 1/31/96 1/31/97 1/31/96 1/31/97 1/31/96
-------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 1,328 $ 1,768 $ 4,368 $ 4,565 $ 7,450 $ 5,327
Net Realized Gain (Loss) on Investments 20,025 10,078 9,456 6,570 (558) (1,369)
Net Change in Unrealized
Appreciation (Depreciation) of
Investments 9,415 22,581 3,898 17,088 (4,069) 5,933
------- -------- -------- ------- -------- ------
Increase in Net Assets
Resulting From Operations 30,768 34,427 17,722 28,223 2,823 9,891
------- -------- -------- ------- -------- ------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (1,384) (1,771) (4,369) (4,562) (7,349) (5,232)
Retail Class A (20) (8) (64) (17) (101) (28)
Capital Gains:
Institutional Class (11,493) (7,843) (9,727) (5,076) -- --
Retail Class A (261) (77) (166) (51) -- --
------- -------- -------- ------- -------- ------
Total Distributions (13,158) (9,699) (14,326) (9,706) (7,450) (5,260)
------- -------- -------- ------- -------- ------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 30,191 49,800 14,417 19,813 42,280 61,480
Reinvestment of Cash Distributions 3,338 2,384 14,012 9,629 1,500 1,297
Cost of Shares Redeemed (24,484) (22,918) (22,812) (13,447) (19,835) (17,709)
------- -------- -------- ------- -------- ------
Total Institutional Class Transactions 9,045 29,266 5,617 15,995 23,945 45,068
------- -------- -------- ------- -------- ------
Retail Class A:
Proceeds from Shares Issued 2,796 1,692 1,788 1,612 2,819 959
Reinvestment of Cash Distributions 254 85 225 66 82 27
Cost of Shares Redeemed (1,098) (97) (857) (65) (1,114) (48)
------- -------- -------- ------- -------- ------
Total Retail Class A Transactions 1,952 1,680 1,156 1,613 1,787 938
------- -------- -------- ------- -------- ------
Net Increase (Decrease) in Net
Assets from Share Transactions 10,997 30,946 6,773 17,608 25,732 46,006
------- -------- -------- ------- -------- ------
Total Increase (Decrease) in Net Assets 28,607 55,674 10,169 36,125 21,105 50,637
NET ASSETS:
Beginning of Period 152,726 97,052 149,021 112,896 116,270 65,633
-------- -------- --------- -------- -------- -------
End of Period $181,333 $152,726 $159,190 $149,021 $137,375 $116,270
======== ======== ========= ======== ======== ========
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 2,308 4,165 1,240 1,766 4,075 5,735
Shares Issued in Lieu of Cash
Distributions 253 196 1,201 852 145 123
Shares Redeemed (1,871) (1,900) (1,931) (1,186) (1,919) (1,680)
Total Institutional Class Share Transactions 690 2,461 510 1,432 2,301 4,178
------- -------- -------- ------- -------- ------
Retail Class A
Shares Issued 216 141 152 141 273 91
Shares Issued in Lieu of Cash
Distributions 19 7 19 6 8 3
Shares Redeemed (83) (8) (73) (6) (107) (5)
------- -------- -------- ------- -------- ------
Total Retail Class A Share Transactions 152 140 98 141 174 89
------- -------- -------- ------- -------- ------
Net Increase (Decrease) in Share
Transactions 842 2,601 608 1,573 2,475 4,267
======= ======= ======== ======= ======== ======
</TABLE>
<TABLE>
<CAPTION>
THE ACHIEVEMENT FUNDS TRUST
SHORT TERM SHORT TERM IDAHO MUNICIPAL
BOND FUND MUNICIPAL BOND FUND MUNICIPAL BOND BOND FUND
=================== ==================== ==================== ================
2/1/96 2/1/95 2/1/96 2/1/95 2/1/96 2/1/95 11/1/96(1)
TO TO TO TO TO TO TO
1/31/97 1/31/96 1/31/97 1/31/96 1/31/97 1/31/96 1/31/97
------- ------- ------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 4,266 $ 4,683 $ 1,034 $ 1,220 $ 1,303 $ 1,230 $ 626
Net Realized Gain (Loss) on Investments (40) (2,035) 130 242 151 401 10
Net Change in Unrealized
Appreciation (Depreciation) of
Investments (1,241) 1,287 (441) 610 (1,032) 1,616 14
-------- -------- -------- --------- -------- -------- -------
Increase in Net Assets
Resulting From Operations 2,985 3,935 723 2,072 422 3,247 650
-------- -------- -------- --------- -------- -------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (4,239) (4,552) (1,031) (1,204) (1,190) (1,149) (605)
Retail Class A (27) (2) (8) (1) (119) (68) (21)
Capital Gains:
Institutional Class -- -- (152) (147) (158) (272) --
Retail Class A -- -- (2) (1) (17) (32) --
-------- -------- -------- --------- -------- -------- -------
Total Distributions (4,266) (4,554) (1,193) (1,353) (1,484) (1,521) (626)
-------- -------- -------- --------- -------- -------- -------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 23,170 45,648 2,746 9,734 7,141 5,838 57,201
Reinvestment of Cash Distributions 1,276 1,376 3 -- 15 3 --
Cost of Shares Redeemed (33,471) (41,153) (11,740) (12,831) (4,601) (7,506) (4,154)
-------- -------- -------- --------- -------- -------- -------
Total Institutional Class Transactions (9,025) 5,871 (8,991) (3,097) 2,555 (1,665) 53,047
-------- -------- -------- --------- -------- -------- -------
Retail Class A:
Proceeds from Shares Issued 789 58 53 220 4,886 3,044 5,553
Reinvestment of Cash Distributions 6 2 10 2 130 94 21
Cost of Shares Redeemed (389) (21) (44) (10) (2,529) (111) (683)
-------- -------- -------- --------- -------- -------- -------
Total Retail Class A Transactions 406 39 19 212 2,487 3,027 4,891
-------- -------- -------- --------- -------- -------- -------
Net Increase (Decrease) in Net
Assets from Share Transactions (8,619) 5,910 (8,972) (2,885) 5,042 1,362 57,938
-------- -------- -------- --------- -------- -------- -------
Total Increase (Decrease) in Net Assets (9,900) 5,291 (9,442) (2,166) 3,980 3,088 57,962
NET ASSETS:
Beginning of Period 75,671 70,380 31,516 33,682 28,982 25,894 --
-------- -------- -------- --------- -------- -------- -------
End of Period $ 65,771 $ 75,671 $22,074 $ 31,516 $32,962 $28,982 $57,962
======== ======== ======== ========= ======== ======== ========
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 2,307 4,338 272 956 683 555 5,709
Shares Issued in Lieu of Cash
Distributions 127 136 -- -- 2 -- --
Shares Redeemed (3,334) (4,067) (1,164) (1,262) (440) (714) (413)
Total Institutional Class Share Transactions (900) 407 (892) (306) 245 (159) 5,296
-------- -------- -------- --------- -------- -------- -------
Retail Class A
Shares Issued 78 6 5 22 467 289 555
Shares Issued in Lieu of Cash
Distributions 1 -- 1 -- 12 8 2
Shares Redeemed (39) (2) (4) (1) (242) (10) (68)
-------- -------- -------- --------- -------- -------- -------
Total Retail Class A Share Transactions 40 4 2 21 237 287 489
-------- -------- -------- --------- -------- -------- -------
Net Increase (Decrease) in Share
Transactions (860) 411 (890) (285) 482 128 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.
42 & 43
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout the Year or Period
<TABLE>
<CAPTION>
NET
ASSET DIVIDENDS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS,END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END TOTAL OF PERIOD
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000)
--------- ---------- ---------- ------------ -------------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
EQUITY FUND
===========
INSTITUTIONAL CLASS:
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 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 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 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
INTERMEDIATE TERM
BOND FUND
=================
INSTITUTIONAL CLASS:
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 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 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 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 AVERAGE
TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER COMMISSION
NET ASSETS WAIVERS) NET ASSETS WAIVERS) RATE RATE(5)
----------- ---------- ---------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EQUITY FUND
===========
INSTITUTIONAL CLASS:
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 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 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 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
INTERMEDIATE TERM
BOND FUND
=================
INSTITUTIONAL CLASS:
For the years ended
January 31, 1997 0.75% 0.95% 6.02% 5.82% 21.23% n/a
January 31, 1996 0.75% 1.02% 6.14% 5.87% 85.16% n/a
For the period ended
January 31, 1995(1)** 0.75% 1.13% 5.60% 5.22% 10.57% n/a
RETAIL CLASS A:
For the year ended
January 31, 1997 1.00% 1.18% 5.76% 5.58% 21.23% n/a
For the period ended
January 31, 1996(2)** 1.00% 1.26% 5.74% 5.48% 85.16% n/a
SHORT TERM
BOND FUND
==========
INSTITUTIONAL CLASS:
For the years ended
January 31, 1997 0.75% 0.96% 6.00% 5.79% 40.80% n/a
January 31, 1996 0.75% 0.99% 6.11% 5.87% 83.64% n/a
For the period ended
January 31, 1995(1)** 0.75% 1.13% 4.21% 3.83% 11.95% n/a
RETAIL CLASS A:
For the year ended
January 31, 1997 1.00% 1.20% 5.74% 5.54% 40.80% n/a
For the period ended
January 31, 1996(2)** 1.00% 1.23% 5.75% 5.52% 83.64% n/a
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
44
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
ASSET DIVIDENDS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS,END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS END TOTAL OF PERIOD
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000)
--------- ---------- ---------- ------------ -------------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SHORT TERM
MUNICIPAL
BOND FUND
==========
INSTITUTIONAL CLASS:
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 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 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 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 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 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
----------- ---------- ---------- ------------ ---------
<S> <C> <C> <C> <C> <C>
SHORT TERM
MUNICIPAL
BOND FUND
==========
INSTITUTIONAL CLASS:
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 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 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 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 period ended
January 31, 1997(3)** 0.75% 1.07% 4.58% 4.26% 19.21%
RETAIL CLASS A:
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 COMMISION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES
DURING THE PERIOD. PRESENTATION OF THE RATE IS ONLY REQUIRED FOR FISCAL
YEARS BEGINNING AFTER SEPTEMBER 1, 1995.
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.
45
<PAGE>
JANUARY 31, 1997
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. TheyTrust 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.
46
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
OPTIONS TRANSACTIONS -- In order to produce incremental earnings, protect gains,
and facilitate buying and selling of securities for investment purposes, the
Equity Fund and the Balanced Fund may write covered call options. A risk in
writing a call option is that the Fund gives up the opportunity of profit if the
market price of the underlying security increases. The Fund realizes a gain upon
the expiration of a written call option. When a written call option is closed
prior to expiration by being exercised, the proceeds of the sale are increased
by the amount of original premium received.
EXPENSES -- Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses of the Trust are prorated to the
Funds on the basis of relative net assets. Class specific expenses, such as
12b-1 fees, are borne by that class. Income, other expenses and accumulated
realized and unrealized gains and losses of a Fund are allocated to the
respective class on the basis of the relative net assets each day.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income are
declared and paid on a quarterly basis for the Equity Fund. The Balanced Fund
declares and pays its dividend on a monthly basis. The Bond Funds declare
dividends on a daily basis and pays them on the first business day of the
following month. Any net realized capital gains on sales of securities for a
Fund are distributed to its shareholders at least annually.
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 ax 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
(CONTINUED)
47
<PAGE>
JANUARY 31, 1997
Notes to Financial Statements (CONTINUED)
daily net assets of the Bond Funds. Such fee is computed daily and paid monthly.
During the year ended January 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 year ended January 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 Financial Services Company ("SFS"), a wholly owned subsidiary of SEI
Corporation, acts as the Trust's Distributor pursuant to a distribution
agreement dated December 27, 1994. The Distributor receives no fee for its
services in connection with distribution of the Institutional shares. The Trust
has adopted a Distribution Plan (the "Plan") on behalf of the Retail Class A
shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. The Plan
provides for the payment by the Trust to the Distributor of up to .25% of the
average daily net assets of the Retail Class A shares.
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust.
48
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
5. INVESTMENT TRANSACTIONS
================================================================================
The cost of security purchases and the proceeds from the sale of
securities, other than short-term investments for the year ended January 31,
1997, are presented below for the Funds. On January 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 January 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
====== ======== ============ ========= ========== ========= ==========
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases
U.S. Government
Securities $ -- $ 3,007 $28,701 $11,182 $ -- $ -- $ --
Other 153,209 95,447 21,280 16,427 10,853 11,326 19,859
Sales
U.S. Government
Securities -- 11,407 18,823 17,090 -- -- --
Other 156,005 86,286 6,526 15,525 17,714 8,418 10,132
Aggregate gross
unrealized gain 36,343 23,419 1,192 65 162 481 552
Aggregate gross
unrealized loss (1,236) (646) (1,533) (277) (17) (111) (538)
-------- ------- ------- ------ ----- ------ ------
Net unrealized gain (loss) $ 35,107 $22,773 $ (341) $ (212) $ 145 $ 370 $ 14
======== ======= ======= ====== ===== ====== ======
</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
(CONTINUED)
49
<PAGE>
JANUARY 31, 1997
Notes to Financial Statements (CONCLUDED)
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
January 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% 4% 3%
Education Bonds 3% 5% 5%
General Obligation 63% 74% 63%
Hospital Bonds -- 4% --
Housing Bonds -- 3% 2%
Public Facility Bonds 11% -- --
Other Revenue Bonds 12% 7% 9%
Transportation Bonds 5% -- 4%
Utility Bonds 4% 3% 14%
---- ---- ----
100% 100% 100%
==== ==== ====
Many municipalities insure their obligations with insurance underwritten by
insurance companies that undertake to pay a holder, when due, the interest and
principal amount on an obligation if the issuer defaults on its obligation.
Although bond insurance reduces the risk of loss due to default by the issuer,
there is no assurance that the insurance company will meet its obligations.
Also, some of the securities have credit enhancements (letters of credit or
guarantees issued by third party domestic or foreign banks or other
institutions). At January 31, 1997, 40%, 65% and 50% 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 January 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% 33% 43% 73% 50%
AA+ -- -- 10% -- 3%
AA 2% -- 16% 9% 28%
AA- 5% 5% 2% 3% 3%
A+ 8% 21% 11% 6% 9%
A 9% 36% 16% 6% 7%
A- 7% 5% 2% 3% --
BBB+ 2% -- -- -- --
---- ---- ---- ---- ----
100% 100% 100% 100% 100%
==== ==== ==== ==== ====
</TABLE>
50
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
7. LINE OF CREDIT
===============================================================================
Pursuant to a credit agreement dated October 11, 1995, 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 January 31, 1997, the Funds had $0 in loans outstanding. For
the year ended January 31, 1997, the maximum amount entered into was $1,000,000,
the average outstanding was $2,740, and the daily weighted average interest rate
was 5.98%.
8. SHAREHOLDER VOTING (UNAUDITED)
===============================================================================
On November 7, 1996, there was a special meeting of the shareholders of the
Achievement Funds Trust to approve James H. Gardner, Blaine Huntsman, and Kent
H. Murdock as directors of the Trust. The following were the results of the
shares voted:
James H. Gardner Blaine Huntsman Kent H. Murdock
================ =============== ===============
For 49,146,230 49,147,698 49,147,963
Against 14,111 12,643 12,378
Abstained 789,673 789,673 789,673
51
<PAGE>
Independent Auditors Report
The Shareholders and Board of Trustees of The Achievement Funds Trust:
We have audited the accompanying statements of net assets of The Achievement
Funds Trust (the "Trust"), including the Equity Fund, the Balanced Fund, the
Intermediate Term Bond Fund, the Short Term Bond Fund, the Short Term Municipal
Bond Fund, the Idaho Municipal Bond Fund and the Municipal Bond Fund as of
January 31, 1997, the related statements of operations for the year then ended,
changes in net assets and the financial highlights for the periods presented.
These financial statements and the financial highlights are the responsibility
of the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at January
31, 1997 by correspondence with the custodian and brokers. An audit also
includes assessing the account principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The Achievement
Funds Trust as of January 31, 1997, the results of their operations, the changes
in the net assets, and the financial highlights for the respective stated
periods in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
March 21, 1997
52
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
Notice to Shareholders
(UNAUDITED)
For shareholders that do not have a January 31, 1997 tax year end, this
notice is for informational purposes only. For shareholders with a January 31,
1997 tax year-end, please consult your tax advisor as to the pertinence of this
notice.
For the fiscal year ended January 31, 1997, each fund is designating
the following items with regard to distributions paid during the year.
(A)* (B)* (C)
LONG-TERM ORDINARY (A+B)
CAPITAL GAINS INCOME TOTAL
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
FUND (TAX BASIS) (TAX BASIS) (TAX BASIS)
- ------------------------------- ------------- ------------- -------------
Equity Fund 89% 11% 100%
Balanced Fund 54% 46% 100%
Intermediate Term Bond Fund 0% 100% 100%
Short Term Bond Fund 0% 100% 100%
Short Term Municipal Bond Fund 5% 95% 100%
Idaho Municipal Bond Fund 12% 88% 100%
Municipal Bond Fund 0% 100% 100%
(D)** (E)** (F)
QUALIFYING TAX EXEMPT FOREIGN
FUND DIVIDENDS(1) INTEREST TAX CREDIT
- ------------------------------ ------------ ---------- ----------
Equity Fund 100% 0% 0%
Balanced Fund 19% 0% 0%
Intermediate Term Bond Fund 0% 0% 0%
Short Term Bond Fund 0% 0% 0%
Short Term Municipal Bond Fund 0% 87% 0%
Idaho Municipal Bond Fund 0% 99% 0%
Municipal Bond Fund 0% 100% 0%
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
* Items (A) and (B) are based on a percentage of each fund's total
distributions.
** Items (D) and (E) are based on a percentage of ordinary income distributions
of each fund.
None of the Funds qualify in California, Connecticut, or New York to pass
through exempt interest dividends from U.S. government obligations.
53
<PAGE>
NOTES
54
<PAGE>
NOTES
55
<PAGE>
NOTES
56
<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 Financial Services Company
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
<PAGE>
[ACHIEVEMENT FUNDS LOGO]
Shares of any of The Achievement Funds are:
[BULLET] not obligations or deposits of, or guaranteed by, First Security
Corporation or any of its banks or non-bank subsidiaries;
[BULLET] not federally insured by the FDIC, the Federal Reserve Board or any
other government agency;
[BULLET] subject to investment risk, including the possible loss of
principal.
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Funds. This report is not
authorized for distribution to prospective investors in a Fund unless preceded
or accompanied by a current prospectus.
FOR MORE INFORMATION, INCLUDING A PROSPECTUS,
CALL 1-800-472-0577.
ACH-F-014-03
