TABLE OF CONTENTS
Letter to Shareholders .......................... 2
Fund Objectives ................................. 3
Investment Adviser's Report ..................... 4
Financial Statements ............................ 10
Notes to Financial Statements ................... 40
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The Achievement Funds
Semi-Annual Report
JULY 31, 1998
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
[THE ACHIEVEMENT FUNDS LOGO OMITTED]
THE
ACHIEVEMENT
FUNDS[REGISTERED MARK]
FOR YOUR LIFE'S JOURNEY[REGISTERED MARK]
<PAGE>
Letter to Shareholders
LAST YEAR AT THIS TIME, WE WERE WRITING TO YOU ABOUT WHAT AN EXCITING TIME IT
WAS TO BE A PARTICIPANT IN THE STOCK MARKET. EARLIER THIS YEAR WE COMMENTED ON
THE EXPLOSIVE IMPACT THE "BABY BOOMERS" ARE HAVING ON THE GROWING MUTUAL FUND
INDUSTRY AND THE FINANCIAL MARKETS IN GENERAL. WELL, FELLOW SHAREHOLDERS, WE ARE
NOW IN A POSITION TO SEE HOW INVESTORS (THE "BABY BOOMERS" INCLUDED) WILL REACT
TO A STRONG DOSE OF MARKET VOLATILITY -- NOT ONLY GLOBALLY, BUT DOMESTICALLY AS
WELL.
WE, LIKE MOST OF THE OTHER MUTUAL FUND COMPANIES, HAVE BEEN CAUTIONING OUR
SHAREHOLDERS FOR SOMETIME NOW ABOUT HOW A BULL MARKET, LIKE THE ONE WE HAVE HAD
OVER THE LAST FEW YEARS, CAN CREATE UNREASONABLE EXPECTATIONS FOR CONTINUED HIGH
LEVELS OF GROWTH. WE DISCUSS THE CONCEPT OF LONG-TERM INVESTING IN TERMS OF NOT
OVERREACTING TO SHORT-TERM MARKET TRENDS, BUT RATHER FOCUSING ON LONG-TERM GOALS
AND REASONABLE RETURNS OVER THE LONG RUN, AT ACCEPTABLE LEVELS OF RISK. WE
CONTINUE TO BELIEVE THAT THESE ARE SOUND INVESTMENT PRINCIPLES, EVEN IN THIS
UNCERTAIN MARKET ENVIRONMENT. THE ACCOMPANYING REPORT BY STERLING K. JENSON,
PRESIDENT OF FIRST SECURITY INVESTMENT MANAGEMENT, INC., EXPANDS ON THIS
PHILOSOPHY, AND PROVIDES AN ANALYSIS OF HOW OUR FUNDS ARE BEING MANAGED.
WE APPRECIATE YOUR ON-GOING SUPPORT OF THE ACHIEVEMENT FUNDS PROGRAM AND WELCOME
YOUR COMMENTS AND QUESTIONS. YOU CAN REACH OUR SHAREHOLDER SERVICES PERSONNEL BY
CALLING 1 (800) 472-0577 OR CONTACT YOUR FINANCIAL ADVISER.
/S/SIGNATURE OMITTED /S/SIGNATURE OMITTED
FREDERICK A. MORETON, JR. JOHN L. RUDISILL
CHAIRMAN OF THE BOARD OF TRUSTEES SENIOR VICE PRESIDENT AND MANAGER
The Achievement Funds Trust Mutual Fund Center
First Security Corporation
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THE ACHIEVEMENT FUNDS
Fund Objectives
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 a total return (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 State
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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Investment Adviser's Report
It is now time for investors to test their commitment to long term investing in
the stock market. After peaking on July 17th at 9337, the Dow Jones Industrial
Average (Dow) began sliding into August, erasing much of the gain that the
market achieved during the first seven months of the year. The market's positive
influences such as robust economic growth, low inflation, falling interest
rates, baby-boomer investing, and growing corporate earnings have become hostage
to collapsing international currencies and markets, an imploding Russian
economy, an embattled American president, 22-year low commodity prices, fear of
deflation, and depression-mode economies in Asia. In addition, corporate
earnings estimates for the coming year are being ratcheted down from
unrealistic, lofty levels. All of these uncertainties have weighed heavily on
the equity markets creating a correction nearly equaling the 20% high-to-low
sell-off in the Dow Jones Industrial Index in 1990. Staying power of new
entrants into the market is being challenged.
The narrowness of the stock market's advance year-to-date has been a bit
disconcerting. Investment has been focused on the 25 largest market
capitalization stocks in the S&P 500 Index. The advance in these companies'
stocks has masked the outflow of capital and underperformance of mid to small
capitalized companies. For example, through June 30, 1998 the largest 25
companies had an average performance of +21.6% while the smallest 200 companies
in the S&P 500 had an average performance of +6.5%. The Russell 2000 Index,
which is comprised of small-capitalized companies, was up only 4.7% for the same
period (Source: PERCEPTION, The Leuthold Group, July 1998). Clearly, portfolio
managers investing in a blend of large and small companies tended to
underperform the S&P Index for the first half of the year.
Interest rates have dropped substantially throughout the year as global
investors have sought safe haven in U. S. Treasury bills, notes, and bonds. With
the Federal Reserve remaining biased toward tightening, at least through July,
short-term rates have held up as long-term rates have fallen. As a consequence,
the yield curve has flattened across the maturity spectrum and actually inverted
in recent days. Many strategists are calling upon the Fed to lower short-term
rates to ease international tension and to lend support to foreign currencies.
We feel that over the next several months the Fed will ease but it may take
additional signs of U.S. economic slowdown before that occurs.
In anticipation of falling rates, we have lengthened the maturities somewhat in
our fixed income funds in an effort to benefit from some anticipated price
appreciation. In our equity positions we have lightened up our holdings in our
mid-cap stock positions and are taking advantage of price decreases in the
larger-cap companies to increase the exposure there. We are investing in
companies that have superior earnings growth records and whose stock prices have
come back into "reasonable" ranges. This investment strategy is based on our
outlook that the U.S. economy will continue growing, albeit at a slower rate,
and that corporate earnings will reflect that growth. In addition we anticipate
that inflation will remain a non-factor and that over the course of the next
year many of the international troubles will begin to correct themselves.
4
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THE ACHIEVEMENT FUNDS
THE ACHIEVEMENT EQUITY FUND
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As previously mentioned, the stock market's move through the first half of 1998
was concentrated in the largest market capitalization stocks. Large
institutional investors favor these stocks not only for their growth
characteristics but also because they provide much needed liquidity -- enabling
investors to move in and out of the stocks without affecting the price very
much. Also, S&P 500 Index funds must buy large concentrations of these big
companies because the index is market capitalization weighted. For example,
General Electric (GE) and American Express are two large companies whose stocks
trade for about the same price. They are both in the Dow Jones Industrial
Average and since that index is a price weighted index, a $1.00 move in either
stock will impact the Dow to the same magnitude. Not so with the S&P 500.
Because GE has such a large market value, a $1.00 move in GE impacts that index
over six times greater than a move in American Express. It also means that for
each $1,000 that invests into an index fund, $32.00 will flow into GE while only
$5.50 will be invested in American Express. We own both stocks in the Fund but
on a more equal-weighted basis. Therefore, as GE stock receives substantially
more cashflow from index fund inflows and thus outperforms American Express, the
index will outperform, on a capitalization basis, funds like ours that are more
equally weighted in their stock positions.
The Achievement Equity Fund holds the ten largest market capitalization
companies that have performed so well in this market. The Fund also has been
diversified into a number of other stocks that show great fundamentals but have
largely been ignored in this narrow market move. Therefore, the performance for
the first half of the year has bridged the gap between the S&P 500 Index and the
broader Russell 2000 Index, which is comprised of smaller capitalization
companies. With the recent market correction taking place, we are reexamining
each stock within the Fund at the new valuations and concentrating our positions
more into the larger, well established companies whose stock prices now exhibit
reasonable price basis for their projected earnings growth. Once the current
stock market correction is over and favorable trends resume, we expect Fund
performance to track favorably with our market index.
THE ACHIEVEMENT BALANCED FUND
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The Asian crisis and other world economic problems have created a wild ride in
the U.S. financial markets. Investors are concerned that companies' earnings
prospects have been decreasing all year long. The biggest question on everyone's
mind is when will the deterioration end. We believe that the worst of the
earnings disappointments have already occurred, potentially setting the stage
for positive equity returns over the next year. To participate in the
anticipated continued growth of our economy, the Achievement Balanced Fund
continues to be more heavily weighted to stocks than to bonds. The Fund's asset
allocation as of July 31, 1998 is 66% equity, 34% bonds and 4% cash equivalents.
The Fund's equity portion is currently overweighted in health care and
underweighted in finance and consumer cyclicals. With the economy exhibiting
5
<PAGE>
signs of a temporary slowdown, we have concentrated the equity holdings in
companies that are not so dependent upon swings in the business cycle. Many
health care companies continue to grow at above average rates even though the
rest of the market struggles. The Fund's sector weight in healthcare is
currently 14.7% compared with the S&P at 11.8%.
The bond allocation of the portfolio is structured with a slightly longer
maturity and duration than the Lehman Intermediate Government/Corporate Bond
Index. Our economic forecast is for the economy to continue growing but at very
moderate levels. This moderate growth combined with historically low inflation
should result in a positive environment for bonds. We expect interest rates to
decrease over the next year, as the prospects for a Federal Reserve easing
become more evident. The longer maturity and duration of the Fund's bond
allocation should benefit in this forecast.
Looking forward, we expect that both the bond and stock markets will react
favorably to an economy that, in our opinion, will remain resilient despite the
world's economic woes. The stock market has corrected back to a level that we
believe is justified in light of current conditions. We feel the correction has
set the stage for the equity market to grow, as earnings growth becomes visible
once again. The Achievement Balanced Fund will maintain its asset allocation
mix, within the limitations outlined in the prospectus, to benefit from a
growing economy while at the same time remain flexible in the event that our
view of the economy changes.
THE ACHIEVEMENT
INTERMEDIATE TERM BOND FUND
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Global economic and political concerns have caused investors to move funds into
the U.S. Treasury market, a move known as "flight to quality". Because more
investors are demanding Treasury securities and more funds are being used to
purchase Treasury securities, the prices of existing securities have been
increasing while at the same time driving down the yields. The 10-year Treasury
and the 30-year Treasury have declined in yield from 5.62% and 5.92% to 5.03%
and 5.32% respectively since the end of 1997. Non-Treasury securities such as
corporates and even agencies have not been in as great of demand as Treasuries.
As a result, they have not appreciated as much in price, causing the yield
spreads between corporates and Treasuries to widen.
Fixed income investors are generally most concerned with inflation, the
direction of interest rates and credit quality. Currently, we are enjoying very
low inflation and expect it to continue. Interest rates have generally been
declining, increasing the value of bond holdings but decreasing the yield. We
expect interest rates, as defined by the 30-year Treasury, to stay in a range of
5.25% to 6.25% for at least the next several months, with a bias towards the
lower end. There is some concern for credit quality as economic growth slows not
only globally but domestically as well. Up to this point, the credit quality of
domestic securities has held up well.
Bond fund investors also concern themselves with duration or a fund's
sensitivity to changes in interest rates. The Achievement Intermediate Term Bond
Fund has maintained a duration slightly longer than
6
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THE ACHIEVEMENT FUNDS
the comparative Lehman Intermediate Government/ Corporate Bond Index adding to
the total return thus far in 1998.
THE ACHIEVEMENT SHORT TERM BOND FUND
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The short end of the Treasury yield curve (zero to 3 years) is currently
inverted. The high point of the short end of the curve is at the six-month
point, yielding 4.93%, and declining to the three-year yield of 4.78%.
Non-government securities, such as commercial paper also have higher yields for
shorter maturities than for longer ones. This pattern will likely continue so
long as the Federal Reserve holds the Fed Funds target rate at 5.50%.
Interest rates in the one-year to three-year range have declined by 50 to 88
basis points (0.50% to 0.88%) since the end of 1997.
Duration and weighted average maturity continue to be in the 1.25 year and 1.33
year area respectively. This short duration has aided in maintaining a very
stable net asset value over time.
Because of the flat shape of the yield curve and inverted shape for the short
end of the curve, yields have not differed significantly from institutional
money market funds. If and when the Federal Reserve reduces the Fed Funds rate,
the yield curve should take on a more "normalized" shape, thereby reestablishing
the yield advantage of the Achievement Short Term Bond Fund over money market
funds.
THE ACHIEVEMENT SHORT TERM
MUNICIPAL BOND FUND
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Interest rates on 3-year, A-rated general obligation municipal bonds rose 12
basis points (0.12%) for the six months ending July 31, 1998. The period was
characterized by relatively low volatility as indicated by the overall range for
the period of approximately 33 basis points (0.33%). The NAV of the Achievement
Short Term Municipal Bond Fund had a range of only 6 cents over the period. This
low volatility and stable net asset value is characteristic of the Fund and
remains the key investment consideration going forward.
The Achievement Short Term Municipal Bond Fund is designed for conservative,
high-tax bracket investors who desire stability of principal coupled with
steady, monthly cash flow that is exempt from federal income taxes.
THE ACHIEVEMENT IDAHO
MUNICIPAL BOND FUND
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Concern over global economic and political conditions have inspired investors
throughout the world to buy U.S. Treasury bonds, driving yields to record lows.
As municipals do not offer the same benefit to international investors as they
do to U.S. residents, municipal bonds have not rallied to the extent that the
Treasury market has. Investors balked as yields fell on municipal bonds and
demand dried up. At the end of July, the yield on a AAA-rated, 10-year municipal
bond was virtually unchanged from January. This lack of interest by investors
created an excess supply of municipal bonds which was
7
<PAGE>
hanging over the market for much of the second quarter. As a result, the
municipal market has underperformed the Treasury market over the last six
months.
In today's global environment, Idaho is not immune to turmoil in other parts of
the world. High-tech manufacturing firms and agricultural interests in the state
have seen less demand from their trading partners in Asia. While such conditions
warrant a close scrutiny of those areas that may be considered at risk, at this
time the Idaho economy continues to grow steadily, although at a slower pace
than in recent years. Consequently, the Fund expects no defaults. Additionally,
many of the bonds that may attract extra attention are insured, as are 66% of
all assets. Quality remains a priority, while the Idaho Municipal Bond Fund's
primary goal is to provide investors with the highest possible income exempt
from Federal and Idaho state income taxes. The weighted average maturity of the
Fund has been maintained in the 14 to 15 year range to maximize income.
Looking forward, interest rates are expected to remain low as investors
anxiously watch the developments in Russia, Asia and the emerging markets for
clues as to how much impact those problems will have on the U.S. economy. At
this time, the impact appears to be growing, and the economy has shown signs of
cooling. There is now more speculation that the Federal Reserve may have to
lower interest rates for the sake of the global economy. If this is the case,
interest rates will remain low and relatively stable, and maybe even go slightly
lower. In an attempt to maximize performance in these conditions, the Fund will
remain fully invested while watching for opportunities to increase income and
yield, while maintaining the average weighted maturity around 15 years.
THE ACHIEVEMENT MUNICIPAL BOND FUND
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Interest rates on 15-year, A-rated general obligation municipal bonds rose 12
basis points (0.12%) for the six months ending July 31. The period was
characterized by relatively low volatility as indicated by the overall range for
the period of approximately 35 basis points (0.35%). Municipal returns have
underperformed U.S. Treasuries over this period as investors throughout the
world have gravitated to Treasuries in this period of uncertainty. A
contributing factor for Treasuries has been the lack of traditional supply as
the budget deficit moves into a surplus mode. In contrast, municipal bonds have
traded into increasing supply and a lack of interest from traditional sources of
demand.
Recently, the municipal market has begun to see some incremental demand. This
can be partially attributed to the attractive returns available to municipal
buyers relative to U.S. Treasuries. The uncertainty and volatility in recent
equity market developments have also contributed to moderate inflows to the
municipal markets.
The relatively moderate size of the Achievement Municipal Bond Fund allows us to
capitalize on special situations in the municipal marketplace. We look for
value, which may occur for a variety of reasons. Some of the reasons include
buyer preferences for specific coupon structures,
8
<PAGE>
THE ACHIEVEMENT FUNDS
underlying credit uncertainties or investor unwillingness or lack of ability to
analyze special redemption language and prepayment probabilities. In addition,
we may emphasize different sectors or maturity structures of the municipal
market depending on the attractiveness relative to historical norms or current
opportunities. As such, we continue to find interesting opportunities in areas
that include housing and health care. Our geographic exposure is broad-based and
continues to be represented by more than 40 states and territories. Many of the
securities held in the portfolio are backed by U.S. Treasuries.
/S/SIGNATURE OMITTED
STERLING K. JENSON
PRESIDENT
First Security Investment Management, Inc.
Investment Adviser
9
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JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
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EQUITY FUND
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[BAR GRAPH OMITTED]
Retail 5.7%
Oil-Energy 9.4%
Consumer Products 13.1%
Financial 13.2%
Real Estate Investment Trust 1.8%
Technologies 23.0%
Chemicals and Drugs 18.1%
Other 15.7%
% OF TOTAL PORTFOLIO INVESTMENTS
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MARKET
DESCRIPTION SHARES VALUE (000)
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COMMON STOCKS -- 98.2%
AEROSPACE -- 3.8%
B.F. Goodrich 69,000 $ 2,799
Boeing 100,000 3,881
Lockheed Martin 20,000 1,994
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8,674
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AGRICULTURE -- 1.5%
Dole Food 70,000 3,299
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AUTOMOTIVE -- 1.0%
Ford Motor 38,000 2,164
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BANKS -- 8.8%
Banc One 55,000 2,843
BankAmerica 27,000 2,423
Chase Manhattan Bank 34,000 2,571
Citicorp 22,000 3,740
NationsBank 32,000 2,552
U.S. Bancorp 66,000 3,036
Wells Fargo & Co. 8,000 2,847
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20,012
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BEAUTY PRODUCTS -- 0.9%
Gillette 40,000 2,095
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CAPITAL GOODS -- 3.7%
General Electric 94,000 8,395
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MARKET
DESCRIPTION SHARES VALUE (000)
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CHEMICALS -- 2.3%
Du Pont (E.I.) de Nemours 44,000 $ 2,728
Monsanto 45,000 2,548
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5,276
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COMPUTER SOFTWARE -- 1.5%
Microsoft* 31,000 3,408
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COMPUTERS & SERVICES -- 7.4%
Cisco Systems* 51,000 4,883
Compaq Computer 119,000 3,912
Hewlett Packard 58,000 3,219
International Business
Machines 37,000 4,902
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16,916
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CONGLOMERATE -- 2.7%
Tyco International 100,000 6,194
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DRUGS -- 9.7%
Abbott Laboratories 49,200 2,045
American Home Products 76,000 3,914
Merck 26,000 3,206
Mylan Laboratories 133,000 3,616
Pfizer 28,000 3,080
Schering Plough 30,000 2,902
SmithKline Beecham, ADR 57,000 3,263
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22,026
----------
ELECTRICAL UTILITIES -- 1.0%
Texas Utilities 54,000 2,163
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ENTERTAINMENT -- 1.0%
Walt Disney 63,000 2,170
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FINANCIAL SERVICES -- 4.3%
American Express 26,000 2,870
Capital One Financial 17,500 2,031
Federal National Mortgage
Association 50,000 3,100
Imperial Credit Industries* 92,724 1,924
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9,925
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FOOD, BEVERAGE & TOBACCO -- 2.6%
Coca-Cola 35,000 2,824
PepsiCo 80,000 3,105
----------
5,929
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INSURANCE -- 1.4%
American International Group 21,600 3,257
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THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
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MARKET
DESCRIPTION SHARES VALUE (000)
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MEDICAL PRODUCTS & SERVICES -- 4.9%
Boston Scientific* 41,000 $ 3,142
HBO 100,000 2,947
Johnson & Johnson 27,000 2,086
Quorum Health Group* 116,000 2,929
----------
11,104
----------
METALS & MINING -- 1.3%
Titanium Metals 155,000 2,887
----------
PAPER & PAPER PRODUCTS -- 1.3%
Kimberly-Clark 66,000 2,966
----------
PETROLEUM & FUEL PRODUCTS -- 2.5%
R & B Falcon* 200,000 3,287
Rowan* 165,000 2,331
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5,618
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PETROLEUM PRODUCTS & SERVICES -- 6.8%
Coastal 100,000 3,275
Exxon 50,000 3,506
Mobil 45,000 3,139
Schlumberger 60,000 3,634
Texaco 34,000 2,068
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15,622
----------
PRINTING & PUBLISHING -- 1.2%
McGraw-Hill 34,000 2,786
----------
RAILROADS -- 0.6%
Union Pacific 31,000 1,302
----------
REAL ESTATE INVESTMENT TRUST -- 1.8%
Prologis Trust 100,000 2,387
Starwood Hotels & Resorts 44,000 1,807
----------
4,194
----------
RETAIL -- 5.7%
American Stores 94,000 2,180
Consolidated Stores* 88,000 2,959
Dayton-Hudson 70,000 3,347
Wal-Mart Stores 70,000 4,419
----------
12,905
----------
SEMI-CONDUCTORS/INSTRUMENTS -- 4.9%
Altera* 80,000 2,917
Analog Devices* 94,000 2,021
Intel 75,000 6,333
----------
11,271
----------
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SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
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TELEPHONES & TELECOMMUNICATION -- 7.8%
AT&T 50,000 $ 3,031
Lucent Technologies 40,000 3,697
Qwest Communications
International* 120,000 4,845
SBC Communications 50,000 2,044
Worldcom* 81,000 4,283
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17,900
----------
TRUCKING -- 1.0%
U.S. Freightways 96,000 2,400
----------
WATER TREATMENT SYSTEMS -- 1.1%
U.S. Filter* 95,000 2,565
----------
WHOLESALE -- 3.7%
Amerisource Health* 66,000 5,024
U.S. Foodservice* 100,000 3,456
----------
8,480
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TOTAL COMMON STOCKS
(Cost $167,871) 223,903
----------
CASH EQUIVALENTS -- 1.7%
SEI Daily Income Trust
Money Market Portfolio $3,326 3,326
SEI Daily Income Trust
Prime Obligation Portfolio 668 668
----------
TOTAL CASH EQUIVALENTS
(Cost $3,994) 3,994
----------
TOTAL INVESTMENTS -- 99.9%
(Cost $171,865) 227,897
----------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% 182
----------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
Equity Fund (concluded)
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MARKET
DESCRIPTION VALUE (000)
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NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par value)
based on 12,943,887 outstanding shares
of beneficial interest $ 137,888
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 686,557 outstanding shares
of beneficial interest 9,938
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 90,556 outstanding shares
of beneficial interest 1,512
Undistributed net investment income 59
Accumulated net realized gain on investments 22,650
Net unrealized appreciation on investments 56,032
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TOTAL NET ASSETS -- 100.0% $228,079
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $16.62
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $16.61
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($16.61 / 95.5%) $17.39
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B (1) $16.59
========
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(1) RETAIL CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE. FOR A DESCRIPTION OF
A POSSIBLE REDEMPTION CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
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BALANCED FUND
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[BAR GRAPH OMITTED]
Other 4.0%
Corporate Securities 11.6%
Treasury Obligations 16.6%
Non-Agency Mortgage-Backed Securities 1.9%
Common Stocks 65.9%
% OF TOTAL PORTFOLIO INVESTMENTS
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FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
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U.S. TREASURY OBLIGATIONS -- 12.7%
U.S. Treasury Notes
7.000%, 04/15/99 $2,500 $ 2,527
8.000%, 08/15/99 2,000 2,050
7.750%, 11/30/99 2,500 2,571
7.750%, 02/15/01 2,500 2,630
7.875%, 08/15/01 2,500 2,659
7.500%, 05/15/02 2,500 2,663
6.250%, 02/15/03 2,500 2,567
7.250%, 05/15/04 2,500 2,705
7.875%, 11/15/04 2,500 2,799
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TOTAL U.S. TREASURY OBLIGATIONS
(Cost $22,041) 23,171
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 3.8%
Federal Home Loan Mortgage Corporation
5.750%, 07/15/03 2,000 1,997
5.750%, 04/15/08 2,500 2,480
Federal National Mortgage Association
6.000%, 05/15/08 2,500 2,522
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $6,979) 6,999
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 0.7%
Olympic Automobile Receivables
Trust, Series 1995-E, Class A5
5.950%, 11/15/01 $1,325 $ 1,326
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,333) 1,326
----------
NON-AGENCY MORTGAGE-BACKED SECURITIES -- 1.9%
American Southwest Financial
Securities, Series 1996-FHA1,
Class A2
7.000%, 11/25/38 1,500 1,520
Citicorp Mortgage Securities,
Series 1997-2, Class A5 (A)
7.250%, 05/25/27 610 612
Donaldson Lufkin Jenrette Mortgage
Association, Series 1997-CF1,
Class A1B (B)
7.600%, 04/15/07 1,200 1,290
----------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(Cost $3,320) 3,422
----------
CORPORATE BONDS -- 11.6%
FINANCE -- 8.8%
Aetna Services
7.125%, 08/15/06 1,500 1,558
Associates of North America, MTN
8.420%, 01/05/00 2,000 2,067
Banc One
7.250%, 08/01/02 1,500 1,554
BankAmerica, MTN
7.125%, 05/12/05 2,000 2,095
Chase Manhattan
6.500%, 01/15/09 2,000 2,010
First Union
7.500%, 07/15/06 2,000 2,142
Ford Motor Credit
7.750%, 10/01/99 2,000 2,038
6.250%, 11/08/00 1,000 1,005
Safeco
6.875%, 07/15/07 1,500 1,547
----------
16,016
----------
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
INDUSTRIAL -- 2.8%
Lucent Technologies
7.250%, 07/15/06 $2,000 $ 2,135
Philip Morris
7.250%, 09/15/01 2,000 2,050
Seagram, YB
6.500%, 04/01/03 1,000 1,009
----------
5,194
----------
TOTAL CORPORATE BONDS
(Cost $20,481) 21,210
----------
COMMON STOCKS -- 65.7%
AEROSPACE -- 2.5%
B.F. Goodrich 38,500 1,562
Boeing 48,000 1,863
Lockheed Martin 11,000 1,097
----------
4,522
----------
AGRICULTURE -- 0.8%
Dole Food 33,000 1,555
----------
AUTOMOTIVE -- 0.5%
Ford Motor 15,000 854
----------
BANKS -- 5.5%
Banc One 39,664 2,050
BankAmerica 18,000 1,615
Chase Manhattan Bank 16,000 1,210
Citicorp 12,000 2,040
NationsBank 17,000 1,356
Wells Fargo & Co. 5,000 1,779
----------
10,050
----------
BEAUTY PRODUCTS -- 1.4%
Gillette 23,000 1,205
Procter & Gamble 18,000 1,429
----------
2,634
----------
CAPITAL GOODS -- 2.4%
General Electric 50,000 4,466
----------
CHEMICALS -- 1.8%
Du Pont (E.I.) de Nemours 25,000 1,550
Monsanto 30,000 1,699
----------
3,249
----------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
13
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
Balanced Fund (concluded)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 0.6%
Allen Telecom* 54,595 $ 491
Pairgain Technologies* 49,273 665
----------
1,156
----------
COMPUTER SOFTWARE -- 1.1%
Microsoft* 18,000 1,979
----------
COMPUTERS & SERVICES -- 4.3%
Cisco Systems* 23,499 2,250
Compaq Computer 40,000 1,315
Hewlett Packard 25,000 1,387
International Business
Machines 21,400 2,835
----------
7,787
----------
CONGLOMERATE -- 1.6%
Tyco International 49,000 3,035
----------
DRUGS -- 7.5%
Abbott Laboratories 35,000 1,455
American Home Products 40,000 2,060
Dura Pharmaceuticals* 35,955 926
Merck 18,000 2,220
Mylan Laboratories 70,000 1,903
Pfizer 13,000 1,430
Schering Plough 19,000 1,838
SmithKline Beecham, ADR 32,000 1,832
----------
13,664
----------
ELECTRICAL UTILITIES -- 0.9%
Texas Utilities 40,000 1,602
----------
ENTERTAINMENT -- 0.7%
Walt Disney 39,000 1,343
----------
FINANCIAL SERVICES -- 2.8%
American Express 16,000 1,766
Associates First Capital 3,931 305
Capital One Financial 7,000 812
Federal National Mortgage
Association 20,500 1,271
Imperial Credit Industries* 46,276 960
----------
5,114
----------
FOOD, BEVERAGE & TOBACCO -- 2.3%
Coca-Cola 30,000 2,421
PepsiCo 32,000 1,242
Sara Lee 10,000 501
----------
4,164
----------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
INSURANCE -- 1.0%
American International Group 12,000 $ 1,810
----------
MEDICAL PRODUCTS & SERVICES -- 2.2%
Boston Scientific* 27,000 2,069
Johnson & Johnson 15,000 1,159
Quorum Health Group* 30,000 758
----------
3,986
----------
METALS & MINING -- 0.7%
Titanium Metals 72,000 1,341
----------
OFFICE EQUIPMENT -- 0.5%
Corporate Express* 70,000 836
----------
PAPER & PAPER PRODUCTS -- 1.4%
Bowater 25,000 1,150
Kimberly-Clark 33,000 1,483
----------
2,633
----------
PETROLEUM & FUEL PRODUCTS -- 1.5%
R & B Falcon* 87,000 1,430
Rowan* 87,000 1,229
----------
2,659
----------
PETROLEUM PRODUCTS & SERVICES -- 4.9%
Coastal 52,000 1,703
Exxon 36,000 2,525
Mobil 24,000 1,674
Schlumberger 33,000 1,999
Texaco 18,000 1,095
----------
8,996
----------
PRINTING & PUBLISHING -- 1.2%
McGraw-Hill 26,000 2,130
----------
RAILROADS -- 0.4%
Union Pacific 17,500 735
----------
REAL ESTATE INVESTMENT TRUSTS -- 1.8%
Prologis Trust 50,000 1,194
Starwood Hotels & Resorts 28,516 1,171
Sunstone Hotel Investors 80,000 890
----------
3,255
----------
RETAIL -- 3.3%
American Stores 55,000 1,275
Consolidated Stores* 46,000 1,547
Eagle Hardware & Garden* 56,000 1,204
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
RETAIL (CONTINUED)
Wal-Mart Stores 33,000 $ 2,083
--------
6,109
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 2.5%
Analog Devices* 52,333 1,125
Intel 42,000 3,546
--------
4,671
--------
TELEPHONES & TELECOMMUNICATION -- 5.0%
AT&T 32,000 1,940
Lucent Technologies 22,000 2,034
Qwest Communications
International* 40,000 1,615
SBC Communications 28,000 1,145
Worldcom* 45,000 2,379
--------
9,113
--------
TRUCKING -- 0.5%
U.S. Freightways 40,000 1,000
--------
WATER TREATMENT SYSTEMS -- 0.6%
U.S. Filter* 42,000 1,134
--------
WHOLESALE -- 1.5%
Amerisource Health* 11,000 837
U.S. Foodservice* 55,000 1,901
--------
2,738
--------
TOTAL COMMON STOCKS
(Cost $91,094) 120,320
--------
CASH EQUIVALENTS -- 3.3%
SEI Daily Income Trust Money
Market Portfolio 4,826 4,826
SEI Daily Income Trust Prime
Obligation Portfolio 1,236 1,236
--------
TOTAL CASH EQUIVALENTS
(Cost $6,062) 6,062
--------
TOTAL INVESTMENTS -- 99.7%
(Cost $151,310) 182,510
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.3% 586
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 13,050,970 outstanding
shares of beneficial interest $132,617
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 324,738 outstanding shares of
beneficial interest 3,914
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 55,050 outstanding shares of
beneficial interest 758
Undistributed net investment income 609
Accumulated net realized gain on investments 13,998
Net unrealized appreciation on investments 31,200
--------
TOTAL NET ASSETS -- 100.0% $183,096
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL CLASS $13.63
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $13.62
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($13.62 / 95.5%) $14.26
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- RETAIL CLASS B (1) $13.60
========
- --------------------------------------------------------------------------------
(1) RETAIL CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE. FOR A DESCRIPTION OF
A POSSIBLE REDEMPTION CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
* NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
MTN--MEDIUM TERM NOTE
YB--YANKEE BOND
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF JULY 31, 1998.
(B) PRIVATE PLACEMENT. SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE
SECURITIES ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS
EXEMPT FROM REGISTRATION NORMALLY TO QUALIFIED INSTITUTIONAL INVESTORS.
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
15
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
- --------------------------------------------------------------------------------
INTERMEDIATE TERM BOND FUND
- --------------------------------------------------------------------------------
[BAR GRAPH OMITTED]
Asset-Backed Securities 5.4%
Cash Equivalents 2.0%
Non-Agency Mortgage-Backed Securities 6.8%
U.S. Government Securities 50.5%
Corporate Securities 35.3%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 42.2%
U.S. Treasury Bonds
7.625%, 02/15/07 $1,000 $ 1,062
7.125%, 02/15/23 2,000 2,337
6.250%, 08/15/23 2,000 2,117
6.500%, 11/15/26 1,000 1,097
U.S. Treasury Notes
6.875%, 07/31/99 4,000 4,052
7.125%, 09/30/99 4,000 4,072
6.375%, 01/15/00 2,000 2,023
7.750%, 01/31/00 1,500 1,548
7.125%, 02/29/00 4,000 4,096
6.750%, 04/30/00 3,000 3,061
6.250%, 08/31/00 4,000 4,058
7.750%, 02/15/01 2,500 2,630
6.375%, 03/31/01 2,000 2,041
7.875%, 08/15/01 1,500 1,596
6.375%, 09/30/01 4,000 4,093
7.500%, 11/15/01 1,000 1,057
6.250%, 08/31/02 4,000 4,094
6.250%, 02/15/03 3,000 3,080
7.250%, 08/15/04 5,000 5,425
7.500%, 02/15/05 1,000 1,103
6.500%, 08/15/05 2,000 2,107
6.875%, 05/15/06 1,000 1,079
7.000%, 07/15/06 2,000 2,176
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (CONTINUED)
6.500%, 10/15/06 $6,000 $ 6,347
6.250%, 02/15/07 3,000 3,129
6.125%, 08/15/07 3,000 3,115
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $70,995) 72,595
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 7.7%
Federal Home Loan Bank
7.190%, 04/27/01 1,000 1,037
7.280%, 07/25/01 1,000 1,043
7.390%, 08/22/01 1,000 1,047
Federal Home Loan Mortgage Corporation
5.750%, 07/15/03 2,000 1,997
6.795%, 12/01/03 1,000 1,046
Federal National Mortgage Association
7.050%, 12/10/98 1,000 1,005
6.850%, 04/05/04 1,000 1,051
6.440%, 05/01/08 998 1,014
Federal National Mortgage
Association, MTN
6.625%, 04/18/01 1,000 1,023
7.520%, 08/24/05 1,000 1,000
7.500%, 10/26/06 2,000 2,008
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $13,249) 13,271
-----------
ASSET-BACKED SECURITIES -- 3.5%
Olympic Automobile Receivables Trust,
Series 1995-E, Class A5
5.950%, 11/15/01 2,000 2,001
Olympic Automobile Receivables Trust,
Series 1996-B, Class A5
6.900%, 02/15/04 2,000 2,052
WFS Financial Owner Trust,
Series 1998-B, Class A4
6.050%, 04/20/03 2,000 2,004
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $6,010) 6,057
-----------
NON-AGENCY MORTGAGE-BACKED SECURITIES -- 8.5%
American Southwest Financial
Securities, Series 1996-FHA1,
Class A2
7.000%, 11/25/38 3,000 3,039
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED SECURITIES (CONTINUED)
Champion Home Equity Trust,
Series 1997-Z, Class A3
6.770%, 03/25/15 $2,000 $ 2,030
Citicorp Mortgage Securities,
Series 1997-2, Class A5 (A)
7.250%, 05/25/27 1,221 1,225
Donaldson Lufkin Jenrette Mortgage
Association, Series 1996-CF2,
Class A1B (B)
7.290%, 11/12/21 3,000 3,158
Donaldson Lufkin Jenrette Mortgage
Association, Series 1997-CF1,
Class A1B (B)
7.600%, 04/15/07 2,000 2,150
Lehman Brothers Commercial
Conduit Mortgage Trust,
Series 1998-C1, Class B
6.590%, 02/18/30 3,000 3,048
---------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(Cost $14,309) 14,650
---------
CORPORATE BONDS -- 34.9%
FINANCE -- 15.1%
Aetna Services
6.750%, 08/15/01 2,000 2,042
American General Finance
7.250%, 04/15/00 1,000 1,020
Associates of North America, MTN
6.810%, 08/03/01 1,000 1,021
7.540%, 04/14/04 1,000 1,061
BankAmerica
7.125%, 05/01/06 2,000 2,107
Chase Manhattan
8.125%, 06/15/02 1,000 1,066
6.375%, 02/15/08 1,000 997
Citicorp
7.125%, 06/01/03 1,000 1,036
Commercial Credit
6.875%, 05/01/02 1,000 1,027
First Union
7.050%, 08/01/05 1,000 1,041
Ford Motor Credit
8.000%, 06/15/02 1,000 1,062
7.750%, 03/15/05 1,000 1,075
General Motors Acceptance, MTN
7.250%, 05/15/03 1,000 1,037
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
Grand Metro
7.125%, 09/15/04 $1,000 $ 1,046
Household Finance
7.650%, 05/15/07 1,000 1,073
J.P. Morgan
7.250%, 01/15/02 1,000 1,034
Lehman Brothers Holdings
6.125%, 07/15/03 1,000 992
Lehman Brothers Holdings, MTN
7.110%, 09/27/99 1,000 1,012
NationsBank
7.625%, 04/15/05 1,000 1,070
Salomon, MTN
7.000%, 05/15/99 1,000 1,008
Sears Roebuck Acceptance
6.950%, 05/15/02 1,000 1,025
Sears Roebuck Acceptance, MTN
6.580%, 11/20/03 1,000 1,013
Society National Bank
7.250%, 06/01/05 1,000 1,056
---------
25,921
---------
INDUSTRIAL -- 14.4%
American Home Products
7.700%, 02/15/00 1,000 1,026
AT&T
6.750%, 04/01/04 1,000 1,030
AT&T, MTN
7.140%, 07/02/99 1,000 1,010
CSR America
6.875%, 07/21/05 2,000 2,078
CSX Transportation
7.540%, 03/15/03 1,000 1,055
Dayton Hudson
7.500%, 07/15/06 2,000 2,133
Dow Capital, YB
7.125%, 01/15/03 1,000 1,031
Hertz
7.000%, 07/01/04 2,000 2,060
J.C. Penney, MTN
7.050%, 05/23/05 1,000 1,038
John Deere Capital
7.140%, 09/15/98 1,000 1,001
Kerr-McGee
6.625%, 10/15/07 1,000 1,024
MCI Communications
7.125%, 01/20/00 1,000 1,014
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
17
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
Intermediate Term Bond Fund (concluded)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
INDUSTRIAL (CONTINUED)
Nabisco
6.700%, 06/15/02 $1,000 $ 1,009
Pacific Bell
7.000%, 07/15/04 1,000 1,041
Ryder Systems
7.340%, 11/01/00 1,040 1,069
Sara Lee, MTN
7.400%, 03/22/02 1,000 1,040
Texas Instruments, MTN
6.875%, 07/15/00 1,000 1,018
Wal-Mart Stores
6.500%, 06/01/03 1,000 1,021
Walt Disney
6.750%, 03/30/06 2,000 2,080
Waste Management
7.700%, 10/01/02 1,000 1,046
---------
24,824
---------
UTILITIES -- 5.4%
Consolidated Edison
6.375%, 04/01/03 1,000 1,014
Norfolk Southern
6.950%, 05/01/02 1,000 1,030
Pacific Gas & Electric, MTN
6.680%, 03/19/03 1,000 1,020
Philadelphia Electric
6.625%, 03/01/03 1,000 1,020
Public Service Electric & Gas
6.500%, 05/01/04 1,000 1,021
Rochester Gas & Electric, MTN
6.375%, 07/30/03 1,000 1,005
Southwestern Bell Telephone, MTN
6.250%, 03/12/01 1,150 1,159
Telstra
6.500%, 07/31/03 1,000 1,013
Union Electric
6.750%, 10/15/99 1,000 1,009
---------
9,291
---------
TOTAL CORPORATE BONDS
(Cost $59,189) 60,036
---------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS -- 1.9%
SEI Daily Income Trust Money
Market Portfolio $3,301 $ 3,301
SEI Daily Income Trust Prime
Obligation Portfolio 39 39
--------
TOTAL CASH EQUIVALENTS
(Cost $3,340) 3,340
--------
TOTAL INVESTMENTS -- 98.7%
(Cost $167,092) 169,949
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.3% 2,195
--------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par value)
based on 16,036,491 outstanding shares
of beneficial interest 169,031
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 275,652 outstanding shares
of beneficial interest 2,875
Overdistributed net investment income (17)
Accumulated net realized loss on investments (2,602)
Net unrealized appreciation on investments 2,857
--------
TOTAL NET ASSETS -- 100.0% $172,144
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.55
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $10.58
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.58 / 96.5%) $10.96
========
- --------------------------------------------------------------------------------
MTN -- MEDIUM TERM NOTE
YB -- YANKEE BOND
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF JULY 31, 1998.
(B) PRIVATE PLACEMENT. SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE
SECURITIES ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS
EXEMPT FROM REGISTRATION NORMALLY TO QUALIFIED INSTITUTIONAL INVESTORS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
[BAR GRAPH OMITTED]
Cash Equivalents 1.9%
U.S. Government Securities 35.8%
Corporate Securities 62.3%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 16.6%
U.S. Treasury Notes
6.750%, 05/31/99 $2,000 $ 2,020
6.875%, 07/31/99 2,000 2,026
6.875%, 08/31/99 2,000 2,029
6.250%, 08/31/00 2,000 2,029
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $8,112) 8,104
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 18.4%
Federal Home Loan Bank
5.750%, 07/28/00 1,000 999
5.950%, 01/29/01 1,000 1,000
6.175%, 03/23/01 2,000 2,000
Federal Home Loan
Mortgage Corporation
5.890%, 02/02/01 1,000 1,000
Federal National Mortgage
Association, MTN
6.120%, 08/25/00 2,000 2,008
6.310%, 09/14/00 2,000 2,014
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $8,997) 9,021
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 60.5%
FINANCE -- 31.7%
Associates of North America
6.250%, 03/15/99 $1,000 $ 1,003
6.375%, 08/15/99 1,000 1,006
Bankers Trust New York
6.625%, 07/30/99 1,000 1,007
Beneficial, MTN, Series H
6.330%, 12/18/00 1,000 1,005
CIT Group Holdings, MTN
6.625%, 09/13/99 1,400 1,411
Ford Motor Credit
5.625%, 01/15/99 1,000 999
Ford Motor Credit, MTN
6.950%, 05/15/00 1,000 1,018
General Motors Acceptance, MTN
6.700%, 07/02/99 1,000 1,008
7.125%, 05/10/00 1,000 1,019
Goldman Sachs
6.200%, 12/15/00 1,000 1,001
Household Bank FSB
6.250%, 04/01/99 1,000 1,003
International Lease Finance,
MTN, Series J
6.030%, 04/05/01 1,000 1,000
Morgan Stanley Group, MTN
6.375%, 01/18/00 1,000 1,006
Salomon Smith Barney
6.500%, 03/01/00 1,000 1,009
Travelers Property & Casualty
6.750%, 09/01/99 1,000 1,008
--------
15,503
--------
INDUSTRIAL -- 20.6%
Albertson's
6.375%, 06/01/00 1,000 1,010
Coca-Cola Enterprises
7.000%, 11/15/99 1,000 1,014
CSC Enterprises
6.800%, 04/15/99 1,000 1,006
CSX Transport
5.740%, 03/15/99 1,000 999
Ingersoll Rand, MTN
6.450%, 08/28/98 1,000 1,000
6.510%, 08/09/99 1,000 1,006
J.C. Penney, MTN
6.375%, 09/15/00 1,000 1,006
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
19
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
Short Term Bond Fund (concluded)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
INDUSTRIAL (CONTINUED)
John Deere Capital, MTN
6.150%, 08/01/00 $1,000 $ 1,004
Sears Roebuck Acceptance, MTN
6.400%, 09/25/00 1,000 1,006
Southwestern Bell Capital, MTN
7.000%, 11/22/99 1,000 1,012
--------
10,063
--------
UTILITIES -- 8.2%
Detroit Edision, MTN
6.390%, 03/15/00 1,000 1,006
Georgia Power
6.125%, 09/01/99 2,000 2,005
Midwest Power
6.750%, 02/01/00 1,000 1,013
--------
4,024
--------
TOTAL CORPORATE BONDS
(Cost $29,593) 29,590
--------
COMMERCIAL PAPER -- 0.4%
Cigna
5.640%, 08/06/98 100 100
Sears & Roebuck
5.660%, 08/04/98 100 100
--------
TOTAL COMMERCIAL PAPER
(Cost $200) 200
--------
CASH EQUIVALENTS -- 1.8%
SEI Daily Income Trust Money
Market Portfolio 893 893
SEI Daily Income Trust Prime
Obligation Portfolio 3 3
--------
TOTAL CASH EQUIVALENTS
(Cost $896) 896
--------
TOTAL INVESTMENTS -- 97.7%
(Cost $47,798) 47,811
--------
OTHER ASSETS AND LIABILITIES, NET -- 2.3% 1,147
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par value)
based on 4,882,970 outstanding shares
of beneficial interest $ 51,182
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 13,818 outstanding shares
of beneficial interest 141
Accumulated net realized loss on investments (2,378)
Net unrealized appreciation on investments 13
--------
TOTAL NET ASSETS-- 100.0% $ 48,958
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL CLASS $10.00
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $9.99
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($9.99 / 98.5%) $10.14
========
- --------------------------------------------------------------------------------
MTN -- MEDIUM TERM NOTE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
SHORT TERM MUNICIPAL
BOND FUND
- --------------------------------------------------------------------------------
[BAR GRAPH OMITTED]
Revenue Bonds 64.6%
General Obligations 34.4%
Cash Equivalents 1.0%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.5%
ALABAMA -- 8.2%
Alabama State Water Pollution
Control Authority RB, AMBAC
5.250%, 08/15/00 $500 $ 513
Jasper, Waterworks & Sewer Board
RB, AMBAC
5.050%, 06/01/01 50 51
Mobile County GO
6.050%, 02/01/01 65 68
Mobile County, Public Improvements
GO, AMBAC
7.125%, 08/15/10 500 541
--------
1,173
--------
ALASKA -- 0.9%
Anchorage, Hospital RB, Sisters of
Providence Project
6.750%, 10/01/01 125 134
--------
ARIZONA -- 1.9%
Arizona State Educational Marketing
Loan Review RB, Series A, MBIA
6.900%, 09/01/00 265 277
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CALIFORNIA -- 3.5%
Oxnard, Special Assessment RB
4.900%, 09/02/00 $495 $ 499
--------
COLORADO -- 1.6%
Colorado State Housing Finance
Authority GO, Series A
6.900%, 05/01/01 220 227
--------
CONNECTICUT -- 3.9%
Connecticut State Development
Authority RB, Gross Health
Care Project
8.500%, 04/01/21 500 565
--------
HAWAII -- 3.7%
Hawaii State GO, Series C, FGIC
6.000%, 03/01/01 500 523
--------
ILLINOIS -- 7.9%
Du Page, Water Commission GO
5.850%, 03/01/00 500 515
Illinois State Health Facilities
Authority RB, Loyola University
Health Systems, Series A, MBIA
4.550%, 07/01/01 300 303
Illinois State Tax Increment RB,
Hoffman Estates
6.500%, 05/15/01 300 317
--------
1,135
--------
INDIANA -- 6.4%
Indiana State Educational Facility
Authority RB, University of
Evansville Project
8.125%, 11/01/10 300 332
Indiana University RB, Series H
6.600%, 08/01/01 550 589
--------
921
--------
MARYLAND -- 3.6%
Prince George County, Public
Improvements GO, Series A, MBIA
5.100%, 03/01/00 500 509
--------
MINNESOTA -- 7.3%
Owatonna, Independent School
District # 761 GO
5.100%, 02/01/00 500 508
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
Short Term Municipal Bond Fund (concluded)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MINNESOTA (CONTINUED)
Rochester, Health Care Facilities RB,
Mayo Medical Center, Series C
7.100%, 11/15/00 $ 500 $ 534
--------
1,042
--------
MISSISSIPPI -- 2.5%
Mississippi State Higher Education
RB, Series B
6.100%, 07/01/01 350 362
--------
NEBRASKA -- 3.6%
Nebraska State Building Lease RB,
Data Processing Center
5.800%, 06/15/01 100 104
Nebraska State Public Gas Supply
System Agency RB
5.250%, 04/01/02 400 410
--------
514
--------
NEVADA -- 4.4%
Nevada State Housing Division RB,
Single Family Program, Series A-1
5.200%, 10/01/01 90 92
Washoe County, Public
Improvements GO, MBIA
8.250%, 06/01/00 500 537
--------
629
--------
NEW MEXICO -- 0.8%
Santa Fe, Municipal Recreational
Facility RB
4.600%, 12/01/01 115 115
--------
NEW YORK -- 3.6%
New York State Thruway Authority
RB, Local Highway & Bridges
Services Contract
5.000%, 04/01/01 500 509
--------
NORTH DAKOTA -- 3.5%
Fargo RB, AMBAC
5.000%, 01/01/01 500 510
--------
OHIO -- 4.0%
Montgomery County GO, Issue I,
Series A
6.750%, 09/01/10 100 108
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
OHIO (CONTINUED)
Ohio State School District GO
5.250%, 04/15/01 $455 $ 468
--------
576
--------
PENNSYLVANIA -- 9.5%
Allegheny County, Hospital
Development Authority RB, Saint
Francis Medical Center Project
4.800%, 05/15/00 395 399
Pennsylvania State GO
9.000%, 10/01/00 190 193
9.000%, 10/01/01 90 91
Philadelphia, Gas & Water Works RB
5.800%, 07/01/01 300 311
Philadelphia, Hospitals & Higher
Education Facilities Authority RB,
Temple University Hospital,
Series A
6.000%, 11/15/00 350 363
--------
1,357
--------
SOUTH CAROLINA -- 3.6%
Pickens County, School
District GO, FGIC
5.250%, 05/01/00 500 511
--------
TEXAS -- 6.8%
Dallas, Housing RB, Corporate
Capital Projects
7.450%, 08/01/00 140 147
Northeast Texas Independent
School District GO, PSFG
7.000%, 02/01/00 500 521
Tarrant County, Health Facilities
Development RB, Health Resources
Systems, Series A, MBIA
5.000%, 02/15/01 300 307
--------
975
--------
UTAH -- 3.6%
Utah State Water Finance Agency RB,
Series A, MBIA
5.000%, 10/01/00 500 511
--------
WASHINGTON -- 1.8%
Washington State Public Power
Supply, RB, Nuclear Project
# 1, Series B
5.000%, 07/01/01 250 255
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
WISCONSIN -- 0.9%
Wisconsin State Housing & Economic
Development Authority RB, Series C
4.800%, 11/01/00 $ 125 $ 126
--------
TOTAL MUNICIPAL BONDS
(Cost $13,875) 13,955
--------
CASH EQUIVALENTS -- 1.0%
SEI Tax-Exempt Trust Institutional
Tax-Free Portfolio 146 146
SEI Tax-Exempt Trust Tax-Free
Portfolio 2 2
--------
TOTAL CASH EQUIVALENTS
(Cost $148) 148
--------
TOTAL INVESTMENTS -- 98.5%
(Cost $14,023) 14,103
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.5% 208
--------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par value)
based on 1,369,358 outstanding shares of
beneficial interest 13,600
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 59,717 outstanding shares of
beneficial interest 605
Undistributed net investment income 7
Accumulated net realized gain on investments 19
Net unrealized appreciation on investments 80
--------
TOTAL NET ASSETS -- 100.0% $ 14,311
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.01
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $10.05
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.05 / 98.5%) $10.20
========
- --------------------------------------------------------------------------------
GO -- GENERAL OBLIGATION
RB -- REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
SECURITIES LISTED ABOVE.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
PSFG -- PERMANENT SCHOOL FUND GUARANTEED
- --------------------------------------------------------------------------------
IDAHO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
[BAR GRAPH OMITTED]
Revenue Bonds 29.8%
General Obligations 69.1%
Cash Equivalents 1.1%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.8%
IDAHO -- 94.3%
Ada & Canyon Counties, Joint
School District # 2,
Meridian GO
5.350%, 07/30/09 $ 750 $ 799
5.500%, 07/30/10 205 218
5.500%, 07/30/11 270 288
5.500%, 07/30/14 500 526
5.625%, 07/30/16 500 527
Ammon, Urban Renewal Agency
RB, Series B
6.000%, 08/01/14 125 132
Bannock & Caribou Counties,
Joint School District # 21,
Marsh VY GO
5.300%, 09/01/04 100 103
Bannock County, School
District # 25,
Pocatello GO, FGIC
5.250%, 08/01/15 500 511
Bingham County, School
District # 055,
Blackfoot GO, MBIA
5.650%, 08/01/15 560 586
Boise City RB
5.100%, 02/01/11 500 516
Boise City, Airport RB,
Package Facility Project,
Series A, AMBAC
5.400%, 08/01/11 1,000 1,045
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
Idaho Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO (CONTINUED)
Boise City, Independent
School District # 1
GO, AMBAC
5.400%, 07/30/14 $ 500 $ 514
Boise State University
Student Housing System RB
5.250%, 04/01/17 160 164
Boise, Independent School
District GO
5.375%, 07/30/10 250 263
5.500%, 07/30/16 1,250 1,303
Bonneville & Bingham Counties,
School District # 93
GO, FGIC
5.750%, 07/30/07 500 545
5.500%, 07/30/10 850 900
Bonneville County, Jail
Bonds GO, FSA
5.500%, 08/01/16 590 612
Bonneville County, School
District # 91,
Idaho Falls GO
5.200%, 08/01/05 500 513
5.450%, 08/01/08 500 512
5.500%, 08/01/09 300 308
Canyon County, School
District # 131,
Nampa GO, MBIA
5.500%, 07/30/11 500 518
5.500%, 07/30/12 500 521
Canyon County, School
District # 132 GO, FSA
5.400%, 07/30/11 200 208
5.400%, 07/30/12 400 416
5.450%, 07/30/14 470 489
5.450%, 07/30/15 900 931
Canyon County, School
District # 139 GO
5.100%, 08/01/09 500 511
5.200%, 08/01/10 1,000 1,021
5.200%, 08/01/11 320 326
5.200%, 08/01/12 110 112
Caribou & Bonneville Counties,
School District # 150 GO
5.500%, 09/01/06 200 204
Cassia & Twin Falls Counties,
Joint School District # 151
GO, FGIC
5.375%, 08/01/14 1,000 1,030
5.375%, 08/01/16 1,000 1,025
City of Sun Valley GO
5.050%, 08/01/08 195 201
Coeur D'Alene GO, AMBAC
5.350%, 03/01/11 240 247
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO (CONTINUED)
Elks, Health Facility
Authority RB,
Hospital Rehab Project
5.000%, 07/15/08 $ 250 $ 249
5.125%, 07/15/13 500 492
5.450%, 07/15/23 280 276
Elmore County, School
District # 193,
Mountain Home GO, AMBAC
5.000%, 07/31/10 400 410
Fremont & Madison Counties,
School District # 215,
St. Anthony GO, FSA
5.600%, 08/01/14 125 130
5.600%, 08/01/15 765 794
Gooding & Lincoln Counties,
Joint School District # 231
GO, FSA,
Pre-refunded @ 100 (A)
6.250%, 02/01/04 130 143
6.300%, 02/01/04 535 591
Gooding County, School
District # 232,
Wendell GO, AMBAC
5.000%, 08/01/11 100 101
Idaho State Building
Authority RB, MBIA
5.600%, 09/01/05 100 106
5.800%, 09/01/05 100 108
Idaho State Building
Authority RB, Series A
5.000%, 09/01/21 100 98
Idaho State Health Facility
Authority RB, Magic Valley
Regional Medical Center, AMBAC
5.200%, 12/01/04 250 261
5.625%, 12/01/13 200 210
Idaho State Health Facility
Authority RB, Mercy Medical
Center, Pre-refunded @ 102 (A)
6.200%, 11/15/02 130 143
Idaho State Health Facility
Authority RB, St. Alphonsus
Regional Medical Center,
Pre-refunded @ 102 (A)
6.100%, 12/01/02 100 110
Idaho State Health Facility
Authority RB, St. Joseph's
Regional Medical Center, MBIA
5.000%, 07/01/07 500 517
Idaho State Housing & Finance
Association RB, SFM
4.950%, 07/01/11 365 363
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO (CONTINUED)
Idaho State Housing & Finance
Association RB, AMT
6.150%, 01/01/28 $1,000 $ 1,059
Jefferson County, School
District # 253 GO, MBIA
5.500%, 08/01/15 240 249
Jerome County, School
District # 262 GO, AMBAC
5.150%, 08/01/04 200 203
Jerome, Lincoln & Gooding
Counties GO
5.000%, 07/31/12 290 292
Kootenai County, Consolidated
Free Library District
GO, FSA
5.000%, 08/01/06 160 167
Latah & Clearwater Counties,
School District # 286
GO, AMBAC
5.500%, 02/01/07 200 207
5.600%, 02/01/08 200 207
Lewis-Clark State College,
Refunding Improvements RB
5.200%, 04/01/17 250 253
Lewiston Orchards,
District Water RB
5.000%, 06/01/08 110 113
Madison County GO, FSA
5.400%, 08/01/15 420 431
Madison County, School
District # 321, Rexburg
GO, AMBAC
5.300%, 02/01/03 200 205
McCall, Water RB,
Parity Lien, FSA
5.750%, 03/01/07 215 235
5.850%, 03/01/16 500 538
Meridian GO, FSA
5.000%, 08/01/15 290 291
Nez Perce County, Pollution
Control RB, Potlatch
Corporation Project
6.000%, 10/01/24 1,000 1,065
Oneida County, School
District # 351 GO, MBIA
5.000%, 07/31/15 375 379
Payette County, School
District # 372 GO
6.250%, 07/30/10 365 418
Payette County, School
District # 372 GO,
Asset Guaranty,
Pre-refunded @ 100 (A)
6.750%, 07/31/03 100 112
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO (CONTINUED)
Southern Idaho Regional
Solid Waste Project COP
5.450%, 11/01/13 $ 500 $ 521
Teton County, School
District # 401 GO, FSA
5.300%, 08/01/07 225 239
5.500%, 08/01/10 400 424
Twin Falls & Cassia Counties,
Joint School District
# 418 GO, MBIA
5.450%, 08/01/15 145 150
Twin Falls County, School
District # 413 GO,
Class A, AMBAC
5.250%, 07/30/09 200 208
5.250%, 07/30/13 400 408
5.250%, 07/30/14 420 427
Twin Falls County, School
District # 415 GO,
Asset Guaranty
5.500%, 08/01/15 195 203
University of Idaho,
Refunding &
Improvements RB
5.100%, 04/01/07 200 207
University of Idaho,
Student Fee RB
5.350%, 04/01/10 250 258
University of Idaho,
Student Fee RB, FSA
5.850%, 04/01/11 500 541
University of Idaho,
Student Fee RB
5.650%, 04/01/22 500 526
Washington County, School
District # 431 GO, AMBAC
5.300%, 08/01/04 200 208
5.400%, 08/01/05 100 104
5.500%, 08/01/06 200 208
--------
34,803
--------
PUERTO RICO -- 3.5%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 250 264
Puerto Rico Municipal Finance
Agency RB, Series A
5.250%, 07/01/10 1,000 1,048
--------
1,312
--------
TOTAL MUNICIPAL BONDS
(Cost $34,603) 36,115
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
25
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
Idaho Municipal Bond Fund (concluded)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT -- 1.1%
SEI Tax-Exempt Trust Institutional
Tax-Free Portfolio $393 $ 393
--------
TOTAL CASH EQUIVALENT
(Cost $393) 393
--------
TOTAL INVESTMENTS -- 98.9%
(Cost $34,996) 36,508
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.1% 390
--------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 2,366,501 outstanding
shares of beneficial interest 24,148
Portfolio Shares of Retail Class A
(unlimited authorization -- no par
value) based on 997,860 outstanding shares
of beneficial interest 10,468
Portfolio Shares of Retail Class B
(unlimited authorization -- no par
value) based on 70,194 outstanding shares
of beneficial interest 757
Accumulated net realized gain on investments 13
Net unrealized appreciation on investments 1,512
--------
TOTAL NET ASSETS -- 100.0% $ 36,898
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.73
========
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE -- RETAIL CLASS A $10.76
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.76 / 96%) $11.21
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B (1) $10.77
========
- --------------------------------------------------------------------------------
(1) RETAIL CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE. FOR DESCRIPTION OF A
POSSIBLE REDEMPTION CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
(A) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
AMT--ALTERNATIVE MINIMUM TAX
COP--CERTIFICATE OF PARTICIPATION
GO--GENERAL OBLIGATION
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
SECURITIES LISTED ABOVE.
ASSET GUARANTY--ASSET GUARANTY
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INVESTORS ASSURANCE
SFM--SECURITY FEDERAL - MIAMI
- --------------------------------------------------------------------------------
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
[BAR GRAPH OMITTED]
Revenue Bonds 89.9%
General Obligations 9.0%
Cash Equivalents 9.0%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.0%
ALABAMA -- 0.9%
Alabama State Housing Finance
Authority RB, Series B,
AMT, GNMA
6.100%, 10/01/20 $ 120 $ 126
Valley, Special Care
Facilities RB, Lanier
Memorial Hospital,
Series A
5.650%, 11/01/22 500 502
--------
628
--------
ALASKA -- 6.8%
Alaska State Housing
Finance RB, MBIA
6.100%, 12/01/37 370 391
Alaska State Housing
Finance RB, Series A
5.700%, 12/01/29 500 511
Alaska State Student Loan RB,
Series A, AMBAC
5.750%, 07/01/14 400 416
Alaska State Veterans Housing RB,
1st Series, GNMA
5.400%, 12/01/23 430 431
Valdez, Marine Term RB,
Mobil Pipeline Project
5.750%, 11/01/28 1,000 1,027
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
ALASKA (CONTINUED)
Valdez, Marine Term RB, Mobil
Pipeline Project, Series A
5.850%, 08/01/25 $1,000 $ 1,032
Valdez, Marine Term RB, Mobil
Pipeline Project, Series B
5.500%, 10/01/28 1,000 1,009
--------
4,817
--------
ARIZONA -- 0.7%
Maricopa County, Elementary
School District # 068 GO,
Alhambra, AMBAC
5.100%, 07/01/11 500 511
--------
ARKANSAS -- 0.7%
Independence County, Pollution
Control RB, Power &
Light Project
6.250%, 01/01/21 500 532
--------
CALIFORNIA -- 3.4%
California State Tri-City Hospital
District RB, Series A, MBIA
5.625%, 02/15/17 1,010 1,054
Los Angeles, Department of
Water & Power RB
6.000%, 07/15/32 190 199
Northern California Power
Agency RB, AMBAC,
Pre-refunded @ 100 (A)
7.500%, 07/01/21 530 695
San Francisco, Airport
Improvement RB, United
Airlines, ETM
8.000%, 07/01/13 290 357
San Francisco, City & County
RB, Series A, GNMA
7.125%, 10/01/16 135 150
--------
2,455
--------
COLORADO -- 1.6%
Colorado State Board of
Agriculture RB, University
of Southern Colorado
8.250%, 05/01/03 100 103
Denver, City & County RB,
The Boston Loft Project,
Series A, AMT, FHA
5.750%, 10/01/27 500 509
Summit County, Sports
Facilities RB, Keystone
Resorts Project
7.375%, 09/01/10 420 501
--------
1,113
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CONNECTICUT -- 0.7%
Waterbury, Housing Authority
RB, Section 8,
Project A, GNMA
5.850%, 02/01/37 $ 500 $ 522
--------
DISTRICT OF COLUMBIA -- 0.2%
District of Columbia Housing
Finance RB, Congress Park II
Apartments, MBIA (B)
0.000%, 11/01/25 2,255 143
--------
FLORIDA -- 1.9%
Boynton Beach, Housing RB,
Clipper Cove Apartments
6.450%, 01/01/27 505 550
Florida State Housing Finance
Agency RB, Glen Oaks Apartment
Project, AMT, FNMA
5.900%, 02/01/30 500 520
Largo, Suncoast Health System RB
6.200%, 03/01/13 295 300
--------
1,370
--------
GEORGIA -- 2.0%
Georgia State Housing & Finance
Authority RB, Homeownership
Opportunity Program,
Series C, FHA
6.500%, 12/01/11 335 359
Georgia State Housing & Finance
Authority RB, Subseries
B2, AMT
5.850%, 12/01/28 1,000 1,034
--------
1,393
--------
HAWAII -- 1.1%
Hawaii State Department of
Budget & Finance RB, Wahawa
General Hospital Project
7.500%, 07/01/12 250 277
Hawaii State Housing Finance
& Development RB,
Series A, FNMA
5.750%, 07/01/30 500 511
--------
788
--------
IDAHO -- 2.1%
Elks, Health Facility
Authority RB, Hospital
Rehabilitation Project
5.450%, 07/15/23 400 394
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
27
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO (CONTINUED)
Idaho State Health Facilities
Authority RB, Bannock
Regional Medical Center
Project
6.125%, 05/01/25 $ 465 $ 493
Nez Perce County, Pollution
Control RB, Potlatch
Corporation Project
6.000%, 10/01/24 545 580
--------
1,467
--------
ILLINOIS -- 8.7%
Bryant, Pollution Control
RB, Central Illinois
Light Company
5.900%, 08/01/23 1,000 1,039
Chicago, Board of
Education GO, MBIA
6.000%, 12/01/26 150 162
Chicago, Housing RB, Bryne Mawr/
Belle Project, AMT, GNMA
6.125%, 06/01/39 500 531
Illinois State Health Facilities
Authority RB, University
of Chicago Hospital Project,
MBIA
6.125%, 08/15/21 735 785
Illinois State Housing
Development Authority RB,
Section 8, HUD
7.000%, 07/01/17 110 110
Illinois State Metropolitan
Pier & Exposition Authority
Dedicated State Tax RB,
MBIA, (B)
0.000%, 06/15/26 1,500 347
Illinois State Toll Highway
Priority RB, Series A, FGIC
6.200%, 01/01/16 1,000 1,079
McHenry County, Community Unit
School District # 200 GO,
Series A, FSA
5.850%, 01/01/16 1,000 1,061
Rockford, Faust Landmark
Apartments RB, Series A,
MBIA
6.750%, 01/01/18 1,000 1,105
--------
6,219
--------
INDIANA -- 2.0%
Ball State University Student
Fee RB, Series G, FGIC
6.125%, 07/01/14 500 535
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
INDIANA (CONTINUED)
Hammond, Multi-School
Building RB, FGIC
6.125%, 07/15/19 $ 720 $ 778
Indiana State Toll Financial
Authority RB
6.000%, 07/01/13 25 25
Petersburg, Pollution Control RB,
Indianapolis Power & Light
6.625%, 12/01/24 105 117
--------
1,455
--------
IOWA -- 2.3%
Iowa City, Sewer RB, MBIA
5.750%, 07/01/21 1,000 1,039
Iowa State Finance
Authority RB, Series F, GNMA
5.700%, 01/01/27 500 513
Iowa State Hospital Facility
RB, Series N, FSA
6.250%, 02/15/22 100 107
--------
1,659
--------
KENTUCKY -- 0.9%
Kentucky State Economic
Development RB, Appalachian
Hospital System
5.875%, 10/01/22 500 513
University of Louisville
Consolidated Educational
Building RB, Series H
5.875%, 05/01/11 100 106
--------
619
--------
MAINE -- 2.8%
Maine State Housing Authority
RB, Series D2, AMT
5.900%, 11/15/25 1,000 1,030
Maine Student Loan RB,
Series A2
6.600%, 05/01/05 935 982
--------
2,012
--------
MASSACHUSETTS -- 0.3%
Massachusetts State Health &
Educational Facilities
Authority RB, Melrose-
Wakefield Hospital,
Series B, ETM, GOH
5.875%, 07/01/18 200 221
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MICHIGAN -- 1.6%
Michigan State Housing
Development Authority
RB, FHA
5.700%, 07/01/06 $ 115 $ 115
Ypsilanti, School District
GO, FGIC
5.750%, 05/01/20 1,000 1,053
--------
1,168
--------
MISSOURI -- 1.0%
Missouri State Health &
Education Facilities RB,
SSM Health Care Projects,
Series B, ETM, MBIA
7.000%, 06/01/15 650 700
--------
NEVADA -- 2.2%
Nevada State GO, Project
# 32, ETM
7.000%, 08/01/10 1,000 1,075
Nevada State Housing
Division RB,
Issue C-1, FHA
6.500%, 10/01/16 200 213
Nevada State Housing
Division RB,
Saratoga Palms, FNMA
6.250%, 10/01/16 280 298
--------
1,586
--------
NEW HAMPSHIRE -- 0.9%
New Hampshire State Higher
Education & Health
Facilities RB, Nashua
Memorial Hospital
6.250%, 10/01/08 630 674
--------
NEW MEXICO -- 1.2%
Carlsbad, Housing RB,
Colonial Hillcrest
7.375%, 08/01/27 375 398
Southeastern New Mexico
Affordable Housing RB,
Casa Hermosa Apartments
7.250%, 12/01/27 430 455
--------
853
--------
NEW YORK -- 7.4%
New York City Industrial
Development Agency RB
11.250%, 07/01/04 400 436
New York State Dorm
Authority RB,
Menorah Campus, FHA
6.100%, 02/01/37 1,000 1,058
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Dorm
Authority RB, FHA
6.000%, 08/01/36 $ 875 $ 923
New York State Ideal
Senior Living
Center Housing RB
5.900%, 08/01/26 500 523
New York State Local
Government Assistance
RB, Series A
6.000%, 04/01/24 180 192
New York State Medical
Care Facilities RB,
Series E, MBIA
6.500%, 08/15/24 100 110
New York State Metropolitan
Transit Authority RB,
Series C1
5.625%, 07/01/27 1,000 1,023
United Nations Development
RB, Series B
5.600%, 07/01/26 1,000 1,002
--------
5,267
--------
NORTH CAROLINA -- 2.3%
North Carolina State Eastern
Municipal Power Agency RB,
Catawba Electric, Series B
6.000%, 01/01/20 630 635
North Carolina State
Eastern Municipal Power
Agency RB, Series A,
Pre-refunded @ 100 (A)
6.000%, 01/01/22 580 664
North Carolina State Eastern
Municipal Power Agency RB,
Series B
5.500%, 01/01/21 310 310
--------
1,609
--------
NORTH DAKOTA -- 1.3%
Fargo, Housing RB
7.125%, 02/01/26 255 260
North Dakota State Housing
Finance Agency RB,
Series C, AMT
5.950%, 07/01/17 280 294
6.100%, 07/01/28 365 382
--------
936
--------
OHIO -- 3.4%
Erie County, Franciscan
Service RB,
Providence Hospital
6.000%, 01/01/13 1,000 1,048
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
29
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
OHIO (CONTINUED)
Johnstown, Waterworks
System RB
6.000%, 12/01/17 $ 250 $ 260
Montgomery, Special
Assessment RB,
Montgomery Woods Project
6.000%, 12/01/17 75 80
Oak Hills, Local School
District GO, Series A
5.700%, 12/01/25 500 529
Wyoming, School District GO
5.250%, 12/01/22 500 493
--------
2,410
--------
OKLAHOMA -- 0.7%
Oklahoma State Industrial
Authority RB, Deaconess
Health Care, Series A
5.750%, 10/01/17 500 508
--------
OREGON -- 1.3%
Clackamas County, Hospital
Facility RB, Fellows Home,
Series A
5.875%, 09/15/21 900 898
--------
PENNSYLVANIA -- 8.8%
Allentown, Hospital Authority
RB, Sacred Heart Hospital
of Allentown, Series A
6.750%, 11/15/14 500 544
Delaware County, Hospital
Authority RB, Crozer-Chester
Medical Center
6.000%, 12/15/09 500 525
6.000%, 12/15/20 500 520
Monroeville, Hospital RB
6.250%, 10/01/15 1,000 938
Dauphin County, General
Authority Office RB,
Forum Pl, Series A
6.000%, 01/15/25 500 501
Pennsylvania State GO
9.000%, 10/01/00 90 91
Pennsylvania State Housing
Finance Agency RB,
Series 39B
6.875%, 10/01/24 750 812
Pennsylvania State Housing
Finance Agency RB,
Series 59A, AMT
5.800%, 10/01/29 1,250 1,283
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
Scranton-Lackawanna, Health &
Welfare Authority RB, Moses
Taylor Hospital Project
6.250%, 07/01/20 $ 500 $ 534
Warren County, Hospital
Authority RB, Series A
6.900%, 04/01/11 500 547
--------
6,295
--------
PUERTO RICO -- 1.5%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 1,000 1,056
--------
RHODE ISLAND -- 2.2%
Rhode Island State Health &
Education Building RB
5.700%, 07/01/15 500 502
Rhode Island State Housing &
Mortgage Finance RB,
Series 23, AMT
5.950%, 04/01/29 1,000 1,034
--------
1,536
--------
SOUTH CAROLINA -- 3.2%
Peidmont, Municipal Power
Agency RB, Series A
5.750%, 01/01/24 1,185 1,186
South Carolina State
Connector 2000
Association RB,
Toll Road Project (B)
0.000%, 01/01/31 500 74
University of South Carolina
RB, MBIA
5.750%, 06/01/26 1,000 1,051
--------
2,311
--------
SOUTH DAKOTA -- 0.8%
South Dakota State Health &
Education Facilities RB, Huron
Regional Medical Center
7.250%, 04/01/20 500 551
--------
TEXAS -- 1.8%
Beaumont, Multi-Family Housing
RB, Park Shadows Project, FHA
6.450%, 06/15/22 500 528
Harris County, Industrial
Development RB, Gatx
Terminals Project
6.950%, 02/01/22 500 543
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
TEXAS (CONTINUED)
Texarkana, Health Facilities
RB, Wadley Regional
Medical Center,
Series B, MBIA
6.000%, 10/01/17 $ 160 $ 180
--------
1,251
--------
UTAH -- 3.4%
Provo City, Housing Authority
RB, Lookout Pointe Apartments,
GNMA
5.800%, 07/20/22 500 515
Salt Lake County, Westminster
College Project RB
5.750%, 10/01/27 250 254
Utah State Building Ownership
Authority Lease RB, State
Facilities Master Lease,
Series A, AMBAC
5.750%, 05/15/18 300 314
Utah State Housing Finance
Agency RB, FHA
6.800%, 01/01/12 260 277
Weber County, Municipal
Building Authority RB, MBIA
5.750%, 12/15/19 1,000 1,046
--------
2,406
--------
VERMONT -- 2.2%
Vermont State Housing Finance
Agency RB, Series 9, AMT,
MBIA
6.000%, 05/01/37 595 619
Vermont State Student
Assistance Financing RB,
Series B, AMT, FSA
6.700%, 12/15/12 900 975
--------
1,594
--------
WASHINGTON -- 4.5%
Chelan County, Public Utility
District #1 RB, Columbia
River Rock Issue, MBIA
0.000%, 06/01/19 1,500 510
King County, GO, MBIA
6.125%, 01/01/33 110 119
Seattle, Low Income Housing
Assistance Authority RB,
Kin On Project,
Series A, GNMA
7.400%, 11/20/36 1,000 1,168
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000)VALUE (000)
- --------------------------------------------------------------------------------
WASHINGTON (CONTINUED)
Snohomish County, Public
Utility RB, District
# 001, FGIC
6.000%, 01/01/18 $ 220 $ 232
Stevens County, Water
Power RB, Kettle Project
6.000%, 12/01/23 110 115
Washington State Development
RB, Tramco Project
6.000%, 08/01/23 820 848
Washington State Health Care
Facilities Authority RB,
Sweedish Health System,
AMBAC
5.500%, 11/15/13 200 209
--------
3,201
--------
WISCONSIN -- 3.3%
Wisconsin State GO,
Series D, AMT
5.800%, 05/01/20 145 149
Wisconsin State Health &
Education Facilities RB,
Franciscan Skemp
Medical Center
6.125%, 11/15/15 1,000 1,079
Wisconsin State Health &
Education Facilities RB,
Hess Memorial
Hospital Association
7.875%, 11/01/22 500 575
Wisconsin State Housing & Economic
Development RB, Series A
6.000%, 09/01/15 550 578
--------
2,381
--------
WYOMING -- 2.9%
Jackson, National Rural Utilities
RB, Gas Supply, Series B, AMT
5.875%, 05/01/26 500 523
Wyoming State Community
Development Authority RB,
Series A, FHA
6.000%, 06/01/23 1,000 1,039
Wyoming State Community
Development Authority RB,
Series 4, AMT
5.850%, 06/01/28 495 511
--------
2,073
--------
TOTAL MUNICIPAL BONDS
(Cost $67,958) 69,188
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
31
<PAGE>
JULY 31, 1998 (UNAUDITED)
Statement of Net Assets
Municipal Bond Fund (concluded)
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUTUAL FUNDS -- 1.3%
Greenwich Street
Municipal Fund $50,000 $ 512
Managed Municipals
Portfolio Fund 34,000 370
Munivest Fund 4,500 44
--------
TOTAL MUTUAL FUNDS
(Cost $933) 926
--------
CASH EQUIVALENT -- 0.1%
SEI Tax-Exempt Trust
Tax-Free Portfolio 32 32
--------
TOTAL CASH EQUIVALENT
(Cost $32) 32
--------
TOTAL INVESTMENTS -- 98.4%
(Cost $68,923) 70,146
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.6% 1,180
--------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par value)
based on 5,990,726 outstanding shares
of beneficial interest 60,058
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 851,997 outstanding shares
of beneficial interest 8,502
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 54,091 outstanding shares of
beneficial interest 560
Accumulated net realized gain on investments 983
Net unrealized appreciation on investments 1,223
--------
TOTAL NET ASSETS -- 100.0% $ 71,326
========
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.34
========
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE -- RETAIL CLASS A $10.34
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.34 / 96%) $10.77
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B (1) $10.34
========
- --------------------------------------------------------------------------------
(1) RETAIL CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE. FOR A DESCRIPTION OF
A POSSIBLE REDEMPTION CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
(A) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
(B) ZERO COUPON SECURITY
AMT -- ALTERNATIVE MINIMUM TAX
ETM -- ESCROWED TO MATURITY
GO -- GENERAL OBLIGATION
RB -- REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
SECURITIES LISTED ABOVE.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING ADMINISTRATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA -- FINANCIAL SECURITY INSURANCE
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GOH -- GENERAL OBLIGATION OF HOSPITAL
HUD -- DEPARTMENT OF HOUSING & URBAN DEVELOPMENT
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
QSBLF -- QUALIFIED SCHOOL BOND LOAN FUND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
32
<PAGE>
FOR THE SIX MONTH PERIOD ENDED JULY 31, 1998 THE ACHIEVEMENT FUNDS TRUST
Statements of Operations (000)
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT
SHORT TERM IDAHO
INTERMEDIATE TERM MUNICIPAL MUNICIPAL MUNICIPAL
EQUITY BALANCED TERM BOND BOND BOND BOND BOND
FUND FUND FUND FUND FUND FUND FUND
====== ======== ============ ===== ========= ======== =========
INCOME:
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend Income $ 1,465 $ 944 $ -- $ -- $ -- $ -- $ --
Interest Income 187 2,019 5,484 1,556 331 924 1,958
------- ------ ------ ------ ---- ---- ------
Total Income 1,652 2,963 5,484 1,556 331 924 1,958
------- ------ ------ ------ ---- ---- ------
EXPENSES:
Administrative Fees 227 186 167 50 50 50 71
Less: Waiver of Administrative Fees -- -- -- -- (35) (14) --
Investment Advisory Fees 841 687 500 149 46 108 213
Less: Waiver of Investment
Advisory Fees (186) (119) (123) (58) (25) (49) (72)
Custodian/Transfer Agent Fees 26 25 25 23 20 22 23
Professional Fees 25 13 18 7 2 4 8
Pricing Fees 4 3 3 1 -- 1 1
Registration & Filing Fees 20 12 15 4 (4) 8 11
Printing Fees 18 15 13 5 1 3 6
Trustee Fees 5 4 4 1 -- 1 2
Distribution Fees - Retail A 14 5 3 -- -- 12 12
Distribution Fees - Retail B (1) 2 1 -- -- -- 1 1
Interest Expense -- -- -- -- -- -- 1
Amortization of Deferred
Organizational Costs 5 6 4 4 2 1 2
------- ------ ------ ------ ---- ---- ------
Total Expenses 1,001 838 629 186 57 148 279
------- ------ ------ ------ ---- ---- ------
Net Income 651 2,125 4,855 1,370 274 776 1,679
------- ------ ------ ------ ---- ---- ------
Net Realized Gain (Loss) on
Investments 16,840 11,403 (46) (50) 10 (12) 714
Net Change in Unrealized
Appreciation (Depreciation)
of Investments 414 (4,134) (1,047) (201) (70) (271) (1,017)
------- ------ ------ ------ ---- ---- ------
Net Realized and Unrealized Gain
(Loss) on Investments 17,254 7,269 (1,093) (251) (60) (283) (303)
------- ------ ------ ------ ---- ---- ------
Increase in Net Assets Resulting
from Operations $17,905 $9,394 $3,762 $1,119 $214 $493 $1,376
======= ====== ====== ====== ==== ==== ======
<FN>
(1) COMMENCED OPERATIONS ON MAY 1, 1998.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
33
<PAGE>
Statements of Changes in Net Assets (000)
FOR THE SIX MONTH PERIOD ENDED JULY 31, 1998 (UNAUDITED) AND THE YEAR ENDED
JANUARY 31, 1998.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY BALANCED INTERMEDIATE
FUND FUND TERM BOND FUND
================== ================== ===================
2/1/98 2/1/97 2/1/98 2/1/97 2/1/98 2/1/97
TO TO TO TO TO TO
7/31/98 1/31/98 7/31/98 1/31/98 7/31/98 1/31/98
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 651 $ 1,200 $ 2,125 $ 4,203 $ 4,855 $ 8,872
Net Realized Gain (Loss) on Investments 16,840 18,358 11,403 10,936 (46) (389)
Net Change in Unrealized
Appreciation (Depreciation) of Investments 414 19,189 (4,134) 11,733 (1,047) 4,245
-------- -------- -------- -------- -------- --------
Increase in Net Assets
Resulting From Operations 17,905 38,747 9,394 26,872 3,762 12,728
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (586) (1,184) (2,029) (3,878) (4,793) (8,727)
Retail Class A (18) (26) (42) (67) (78) (146)
Retail Class B (1) (1) (1) --
Capital Gains:
Institutional Class -- (20,133) -- (8,323) -- --
Retail Class A -- (852) -- (176) -- --
Retail Class B (1) -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions (605) (22,195) (2,072) (12,444) (4,871) (8,873)
-------- -------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 22,769 32,263 2,967 14,194 21,122 44,870
Reinvestment of Cash Distributions 169 6,033 2,026 12,192 863 1,565
Cost of Shares Redeemed (19,757) (36,401) (9,996) (21,130) (13,411) (23,136)
-------- -------- -------- -------- -------- --------
Total Institutional Class Transactions 3,181 1,895 (5,003) 5,256 8,574 23,299
-------- -------- -------- -------- -------- --------
Retail Class A:
Proceeds from Shares Issued 2,069 6,827 612 968 462 757
Reinvestment of Cash Distributions 17 843 41 239 76 139
Cost of Shares Redeemed (1,256) (2,194) (254) (461) (377) (907)
-------- -------- -------- -------- -------- --------
Total Retail Class A Transactions 830 5,476 399 746 161 (11)
-------- -------- -------- -------- -------- --------
Retail Class B (1):
Proceeds from Shares Issued 1,512 -- 760 -- -- --
Reinvestment of Cash Distributions 1 -- 1 -- -- --
Cost of Shares Redeemed (1) -- (3) -- -- --
-------- -------- -------- -------- -------- --------
Total Retail Class B Transactions 1,512 -- 758 -- -- --
-------- -------- -------- -------- -------- --------
Net Increase (Decrease) in Net
Assets from Share Transactions 5,523 7,371 (3,846) 6,002 8,735 23,288
-------- -------- -------- -------- -------- --------
Total Increase (Decrease) in Net Assets 22,823 23,923 3,476 20,430 7,626 27,143
NET ASSETS:
Beginning of Period 205,256 181,333 179,620 159,190 164,518 137,375
-------- -------- -------- -------- -------- --------
End of Period $228,079 $205,256 $183,096 $179,620 $172,144 $164,518
======== ======== ======== ======== ======== ========
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 1,363 2,097 215 1,102 2,002 4,313
Shares Issued in Lieu of Cash Distributions 10 388 147 950 82 151
Shares Redeemed (1,172) (2,373) (726) (1,650) (1,270) (2,228)
-------- -------- -------- -------- -------- --------
Total Institutional Class Share Transactions 201 112 (364) 402 814 2,236
-------- -------- -------- -------- -------- --------
Retail Class A
Shares Issued 125 434 44 74 44 72
Shares Issued in Lieu of Cash Distributions 1 54 3 19 7 13
Shares Redeemed (75) (144) (18) (36) (36) (87)
-------- -------- -------- -------- -------- --------
Total Retail Class A Share Transactions 51 344 29 57 15 (2)
-------- -------- -------- -------- -------- --------
Retail Class B (1)
Shares Issued 91 -- 55 -- -- --
Shares Issued in Lieu of Cash Distributions -- -- -- -- -- --
Shares Redeemed -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Retail Class B Share Transactions 91 -- 55 -- --
-------- -------- -------- -------- -------- --------
Net Increase (Decrease) in Share Transactions 343 456 (280) 459 829 2,234
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
SHORT TERM SHORT TERM IDAHO
BOND FUND MUNICIPAL BOND FUND MUNICIPAL BOND
================== ================== ===================
2/1/98 2/1/97 2/1/98 2/1/97 2/1/98 2/1/97
TO TO TO TO TO TO
7/31/98 1/31/98 7/31/98 1/31/98 7/31/98 1/31/98
------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 1,370 $ 3,244 $ 274 $ 739 $ 776 $ 1,517
Net Realized Gain (Loss) on Investments (50) (253) 10 65 (12) 70
Net Change in Unrealized
Appreciation (Depreciation) of Investments (201) 426 (70) 6 (271) 1,413
------- ------- ------- ------- ------- -------
Increase in Net Assets
Resulting From Operations 1,119 3,417 214 810 493 3,000
------- ------- ------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (1,366) (3,230) (270) (740) (581) (1,132)
Retail Class A (4) (14) (5) (8) (192) (385)
Retail Class B (1) -- -- (3)
Capital Gains:
Institutional Class -- -- -- (125) -- (90)
Retail Class A -- -- -- (2) -- (34)
Retail Class B (1) -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total Distributions (1,370) (3,244) (275) (875) (776) (1,641)
------- ------- ------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 4,631 12,725 408 2,668 5,227 5,810
Reinvestment of Cash Distributions 562 1,122 -- 6 11 24
Cost of Shares Redeemed (6,976) (28,495) (2,263) (8,830) (5,719) (8,204)
------- ------- ------- ------- ------- -------
Total Institutional Class Transactions (1,783) (14,648) (1,855) (6,156) (481) (2,370)
------- ------- ------- ------- ------- -------
Retail Class A:
Proceeds from Shares Issued 12 122 400 65 1,782 4,939
Reinvestment of Cash Distributions 4 9 4 10 186 385
Cost of Shares Redeemed (81) (370) (26) (79) (437) (1,901)
------- ------- ------- ------- ------- -------
Total Retail Class A Transactions (65) (239) 378 (4) 1,531 3,423
------- ------- ------- ------- ------- -------
Retail Class B (1):
Proceeds from Shares Issued -- -- -- -- 756 --
Reinvestment of Cash Distributions -- -- -- -- 1 --
Cost of Shares Redeemed -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total Retail Class B Transactions -- -- -- -- 757 --
------- ------- ------- ------- ------- -------
Net Increase (Decrease) in Net
Assets from Share Transactions (1,848) (14,887) (1,477) (6,160) 1,807 1,053
------- ------- ------- ------- ------- -------
Total Increase (Decrease) in Net Assets (2,099) (14,714) (1,538) (6,225) 1,524 2,412
NET ASSETS:
Beginning of Period 51,057 65,771 15,849 22,074 35,374 32,962
------- ------- ------- ------- ------- -------
End of Period $48,958 $51,057 $14,311 $15,849 $36,898 $35,374
======= ======= ======= ======= ======= =======
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 463 1,273 40 266 487 551
Shares Issued in Lieu of Cash Distributions 56 112 -- 1 1 2
Shares Redeemed (697) (2,852) (226) (879) (533) (782)
------- ------- ------- ------- ------- -------
Total Institutional Class Share Transactions (178) (1,467) (186) (612) (45) (229)
------- ------- ------- ------- ------- -------
Retail Class A
Shares Issued 1 12 41 6 165 474
Shares Issued in Lieu of Cash Distributions 1 1 -- 1 17 37
Shares Redeemed (8) (37) (3) (8) (40) (179)
------- ------- ------- ------- ------- -------
Total Retail Class A Share Transactions (6) (24) 38 (1) 142 332
------- ------- ------- ------- ------- -------
Retail Class B (1)
Shares Issued -- -- -- -- 70 --
Shares Issued in Lieu of Cash Distributions -- -- -- -- -- --
Shares Redeemed -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total Retail Class B Share Transactions -- -- -- -- 70 --
------- ------- ------- ------- ------- -------
Net Increase (Decrease) in Share Transactions (184) (1,491) (148) (613) 167 103
======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
MUNICIPAL
BOND FUND
===================
2/1/98 2/1/97
TO TO
7/31/98 1/31/98
------- -------
INVESTMENT ACTIVITIES:
<S> <C> <C>
Net Investment Income $ 1,679 $ 3,175
Net Realized Gain (Loss) on Investments 714 1,138
Net Change in Unrealized
Appreciation (Depreciation) of Investments (1,017) 2,226
------- -------
Increase in Net Assets
Resulting From Operations 1,376 6,539
------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (1,469) (2,761)
Retail Class A (207) (414)
Retail Class B (1) (3)
Capital Gains:
Institutional Class -- (763)
Retail Class A -- (116)
Retail Class B (1) -- --
------- -------
Total Distributions (1,679) (4,054)
------- -------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 5,244 16,991
Reinvestment of Cash Distributions 4 11
Cost of Shares Redeemed (6,057) (9,182)
------- -------
Total Institutional Class Transactions (809) 7,820
------- -------
Retail Class A:
Proceeds from Shares Issued 673 7,604
Reinvestment of Cash Distributions 207 530
Cost of Shares Redeemed (1,973) (3,430)
------- -------
Total Retail Class A Transactions (1,093) 4,704
------- -------
Retail Class B (1):
Proceeds from Shares Issued 558 --
Reinvestment of Cash Distributions 2 --
Cost of Shares Redeemed -- --
------- -------
Total Retail Class B Transactions 560 --
------- -------
Net Increase (Decrease) in Net
Assets from Share Transactions (1,342) 12,524
------- -------
Total Increase (Decrease) in Net Assets (1,645) 15,009
NET ASSETS:
Beginning of Period 72,971 57,962
------- -------
End of Period $71,326 $72,971
======= =======
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 508 1,673
Shares Issued in Lieu of Cash Distributions -- 1
Shares Redeemed (586) (901)
------- -------
Total Institutional Class Share Transactions (78) 773
------- -------
Retail Class A
Shares Issued 65 757
Shares Issued in Lieu of Cash Distributions 20 52
Shares Redeemed (191) (340)
------- -------
Total Retail Class A Share Transactions (106) 469
------- -------
Retail Class B (1)
Shares Issued 54 --
Shares Issued in Lieu of Cash Distributions -- --
Shares Redeemed -- --
------- -------
Total Retail Class B Share Transactions 54 --
------- -------
Net Increase (Decrease) in Share Transactions (130) 1,242
======= =======
<FN>
(1) COMMENCED OPERATIONS ON MAY 1, 1998.
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.
34 & 35
<PAGE>
Financial Highlights
(UNAUDITED)
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period or Year
<TABLE>
<CAPTION>
NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS, END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END TOTAL OF PERIOD
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000)
--------- ---------- ------------- ------------- -------------- ------------ ------- -----------
EQUITY FUND
===========
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C> <C> <C>
July 31, 1998 $15.34 0.05 (0.05) -- 1.28 $16.62 9.93%* $215,170
For the years ended
January 31, 1998 $14.03 0.10 (0.10) (1.68) 2.99 $15.34 22.14% $195,500
January 31, 1997 $12.64 0.11 (0.11) (0.94) 2.33 $14.03 20.00% $177,234
January 31, 1996 $10.24 0.17 (0.17) (0.72) 3.12 $12.64 32.55% $150,957
For the period ended
January 31, 1995(1)** $10.00 0.01 -- -- 0.23 $10.24 2.40%* $ 97,052
RETAIL CLASS A:
For the six months ended
July 31, 1998 $15.34 0.03 (0.03) -- 1.27 $16.61 9.76%* $ 11,407
For the year ended
January 31, 1998 $14.04 0.06 (0.06) (1.68) 2.98 $15.34 21.78% $ 9,756
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
RETAIL CLASS B:
For the period ended
July 31, 1998(3)** $17.16 (0.02) (0.01) -- (0.54) $16.59 (2.35)%* $ 1,502
BALANCED FUND
=============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1998 $13.10 0.15 (0.15) -- 0.53 $13.63 6.65%* $177,926
For the years ended
January 31, 1998 $12.01 0.32 (0.30) (0.64) 1.71 $13.10 17.28% $175,751
January 31, 1997 $11.79 0.34 (0.35) (0.78) 1.01 $12.01 12.03% $156,315
January 31, 1996 $10.20 0.39 (0.39) (0.42) 2.01 $11.79 24.15% $147,357
For the period ended
January 31, 1995(1)** $10.00 0.04 -- -- 0.16 $10.20 2.00%* $112,896
RETAIL CLASS A:
For the six months ended
July 31, 1998 $13.08 0.14 (0.14) -- 0.54 $13.62 6.60%* $ 4,421
For the year ended
January 31, 1998 $12.00 0.28 (0.27) (0.64) 1.71 $13.08 16.92% $ 3,869
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
RETAIL CLASS B:
For the period ended
July 31, 1998(3)** $14.09 0.04 (0.04) -- (0.49) $13.60 (2.16)%* $ 749
</TABLE>
<TABLE>
<CAPTION>
RATIO RATIO OF
OF EXPENSES NET INCOME
RATIO TO AVERAGE RATIO OF TO AVERAGE
OF EXPENSES NET ASSETS NET INCOME NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
NET ASSETS WAIVERS) NET ASSETS WAIVERS) RATE
----------- ----------- ---------- ---------- ---------
EQUITY FUND
===========
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C>
July 31, 1998 0.90% 1.03% 0.59% 0.46% 38.45%
For the years ended
January 31, 1998 0.90% 1.00% 0.63% 0.53% 36.68%
January 31, 1997 0.90% 1.07% 0.81% 0.64% 97.14%
January 31, 1996 0.90% 1.14% 1.43% 1.19% 103.85%
For the period ended
January 31, 1995(1)** 0.90% 1.26% 1.22% 0.86% 6.03%
RETAIL CLASS A:
For the six months ended
July 31, 1998 1.15% 1.29% 0.33% 0.19% 38.45%
For the year ended
January 31, 1998 1.15% 1.28% 0.33% 0.20% 36.68%
January 31, 1997 1.15% 1.31% 0.52% 0.36% 97.14%
For the period ended
January 31, 1996(2)** 1.15% 1.37% 0.99% 0.77% 103.85%
RETAIL CLASS B:
For the period ended
July 31, 1998(3)** 1.90% 2.31% (0.75)% (1.16)% 38.45%
BALANCED FUND
=============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1998 0.90% 1.03% 2.30% 2.17% 28.20%
For the years ended
January 31, 1998 0.90% 1.02% 2.49% 2.37% 30.91%
January 31, 1997 0.90% 1.07% 2.90% 2.73% 68.11%
January 31, 1996 0.90% 1.14% 3.48% 3.24% 59.74%
For the period ended
January 31, 1995(1)** 0.90% 1.26% 3.61% 3.25% 1.70%
RETAIL CLASS A:
For the six months ended
July 31, 1998 1.15% 1.28% 2.05% 1.92% 28.20%
For the year ended
January 31, 1998 1.15% 1.27% 2.23% 2.11% 30.91%
January 31, 1997 1.15% 1.32% 2.64% 2.47% 68.11%
For the period ended
January 31, 1996(2)** 1.15% 1.38% 3.06% 2.83% 59.74%
RETAIL CLASS B:
For the period ended
July 31, 1998(3)** 1.90% 2.04% 1.22% 1.08% 28.20%
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
36
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS, END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END TOTAL OF PERIOD
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000)
--------- ---------- ------------- ------------- -------------- ------------ ------- -----------
INTERMEDIATE TERM
BOND FUND
=================
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C> <C> <C>
July 31, 1998 $10.63 0.31 (0.31) -- (0.08) $10.55 3.64%* $169,228
For the years ended
January 31, 1998 $10.37 0.62 (0.62) -- 0.26 $10.63 8.82% $161,742
January 31, 1997 $10.79 0.62 (0.62) -- (0.42) $10.37 2.06% $134,645
January 31, 1996 $10.09 0.71 (0.70) -- 0.69 $10.79 13.62% $115,307
For the period ended
January 31, 1995(1)** $10.00 0.05 (0.06) -- 0.10 $10.09 1.54%* $ 65,633
RETAIL CLASS A:
For the six months ended
July 31, 1998 $10.66 0.29 (0.30) -- (0.07) $10.58 3.55%* $ 2,916
For the year ended
January 31, 1998 $10.40 0.60 (0.60) -- 0.26 $10.66 8.60% $ 2,776
January 31, 1997 $10.82 0.60 (0.60) -- (0.42) $10.40 1.80% $ 2,730
For the period ended
January 31, 1996(2)** $10.16 0.56 (0.55) -- 0.65 $10.82 13.49%* $ 963
SHORT TERM
BOND FUND
==========
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1998 $10.05 0.27 (0.27) -- (0.05) $10.00 3.16%* $ 48,820
For the years ended
January 31, 1998 $10.01 0.57 (0.57) -- 0.04 $10.05 6.25% $ 50,853
January 31, 1997 $10.18 0.60 (0.60) -- (0.17) $10.01 4.40% $ 65,328
January 31, 1996 $10.02 0.67 (0.65) -- 0.14 $10.18 7.80% $ 75,632
For the period ended
January 31, 1995(1)** $10.00 0.04 (0.06) -- 0.04 $10.02 0.79%* $ 70,380
RETAIL CLASS A:
For the six months ended
July 31, 1998 $10.04 0.26 (0.26) -- (0.05) $ 9.99 3.00%* $ 138
For the year ended
January 31, 1998 $10.00 0.55 (0.55) -- 0.04 $10.04 6.04% $ 204
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
</TABLE>
<TABLE>
<CAPTION>
RATIO RATIO OF
OF EXPENSES NET INCOME
RATIO TO AVERAGE RATIO OF TO AVERAGE
OF EXPENSES NET ASSETS NET INCOME NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
NET ASSETS WAIVERS) NET ASSETS WAIVERS) RATE
----------- ----------- ---------- ---------- ---------
INTERMEDIATE TERM
BOND FUND
=================
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C>
July 31, 1998 0.75% 0.90% 5.83% 5.68% 12.35%
For the years ended
January 31, 1998 0.75% 0.87% 5.99% 5.87% 20.91%
January 31, 1997 0.75% 0.95% 6.02% 5.82% 21.23%
January 31, 1996 0.75% 1.02% 6.14% 5.87% 85.16%
For the period ended
January 31, 1995(1)** 0.75% 1.13% 5.60% 5.22% 10.57%
RETAIL CLASS A:
For the six months ended
July 31, 1998 1.00% 1.15% 5.58% 5.43% 12.35%
For the year ended
January 31, 1998 1.00% 1.11% 5.75% 5.64% 20.91%
January 31, 1997 1.00% 1.18% 5.76% 5.58% 21.23%
For the period ended
January 31, 1996(2)** 1.00% 1.26% 5.74% 5.48% 85.16%
SHORT TERM
BOND FUND
==========
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1998 0.75% 0.98% 5.54% 5.31% 16.98%
For the years ended
January 31, 1998 0.75% 0.95% 5.68% 5.48% 48.90%
January 31, 1997 0.75% 0.96% 6.00% 5.79% 40.80%
January 31, 1996 0.75% 0.99% 6.11% 5.87% 83.64%
For the period ended
January 31, 1995(1)** 0.75% 1.13% 4.21% 3.83% 11.95%
RETAIL CLASS A:
For the six months ended
July 31, 1998 1.00% 1.22% 5.29% 5.07% 16.98%
For the year ended
January 31, 1998 1.00% 1.18% 5.43% 5.25% 48.90%
January 31, 1997 1.00% 1.20% 5.74% 5.54% 40.80%
For the period ended
January 31, 1996(2)** 1.00% 1.23% 5.75% 5.52% 83.64%
<FN>
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
** RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
+ RETURNS DO NOT REFLECT ANY SALES LOAD THAT MAY BE APPLICABLE.
(1) COMMENCED OPERATIONS ON DECEMBER 28, 1994.
(2) COMMENCED OPERATIONS ON MARCH 6, 1995.
(3) COMMENCED OPERATIONS ON MAY 1, 1998.
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.
37
<PAGE>
Financial Highlights
(UNAUDITED)
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period or Year
<TABLE>
<CAPTION>
NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS, END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END TOTAL OF PERIOD
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000)
--------- ---------- ------------- ------------- -------------- ------------ ------- -----------
SHORT TERM
MUNICIPAL
BOND FUND
==========
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C> <C> <C>
July 31, 1998 $10.05 0.18 (0.18) -- (0.04) $10.01 1.93%* $13,711
For the years ended
January 31, 1998 $10.08 0.37 (0.38) (0.07) 0.05 $10.05 4.38% $15,626
January 31, 1997 $10.23 0.39 (0.39) (0.07) (0.08) $10.08 3.03% $21,846
January 31, 1996 $10.01 0.43 (0.42) (0.05) 0.26 $10.23 6.71% $31,304
For the period ended
January 31, 1995(1)** $10.00 0.03 (0.03) -- 0.01 $10.01 0.43%* $33,682
RETAIL CLASS A:
For the six months ended
July 31, 1998 $10.08 0.17 (0.17) -- (0.03) $10.05 1.96%* $ 600
For the year ended
January 31, 1998 $10.10 0.35 (0.35) (0.07) 0.05 $10.08 4.08% $ 223
January 31, 1997 $10.25 0.36 (0.36) (0.07) (0.08) $10.10 2.76% $ 228
For the period ended
January 31, 1996(2)** $10.01 0.33 (0.33) (0.05) 0.29 $10.25 6.99%* $ 212
IDAHO MUNICIPAL
BOND FUND
===============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1998 $10.82 0.23 (0.23) -- (0.09) $10.73 2.29%* $25,404
For the years ended
January 31, 1998 $10.41 0.47 (0.47) (0.04) 0.45 $10.82 9.06% $26,093
January 31, 1997 $10.80 0.46 (0.46) (0.06) (0.33) $10.41 1.31% $27,487
January 31, 1996 $10.13 0.52 (0.51) (0.12) 0.78 $10.80 12.68% $25,873
For the period ended
January 31, 1995(1)** $10.00 0.04 (0.04) -- 0.13 $10.13 1.74%* $25,894
RETAIL CLASS A:
For the six months ended
July 31, 1998 $10.85 0.22 (0.22) -- (0.09) $10.76 2.18%* $10,738
For the year ended
January 31, 1998 $10.44 0.45 (0.45) (0.04) 0.45 $10.85 8.84% $ 9,281
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
RETAIL CLASS B:
For the period ended
July 31, 1998(3)** $10.69 0.09 (0.09) -- 0.08 $10.77 1.58%* $ 756
</TABLE>
<TABLE>
<CAPTION>
RATIO RATIO OF
OF EXPENSES NET INCOME
RATIO TO AVERAGE RATIO OF TO AVERAGE
OF EXPENSES NET ASSETS NET INCOME NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
NET ASSETS WAIVERS) NET ASSETS WAIVERS) RATE
----------- ----------- ---------- ---------- ---------
SHORT TERM
MUNICIPAL
BOND FUND
==========
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C>
July 31, 1998 0.75% 1.08% 3.61% 3.28% 8.35%
For the years ended
January 31, 1998 0.75% 1.34% 3.74% 3.15% 64.76%
January 31, 1997 0.75% 1.26% 3.79% 3.28% 41.11%
January 31, 1996 0.75% 1.30% 3.88% 3.33% 114.09%
For the period ended
January 31, 1995(1)** 0.75% 1.26% 3.67% 3.16% 11.80%
RETAIL CLASS A:
For the six months ended
July 31, 1998 1.00% 1.46% 3.36% 2.90% 8.35%
For the year ended
January 31, 1998 1.00% 1.59% 3.49% 2.90% 64.76%
January 31, 1997 1.00% 1.51% 3.56% 3.05% 41.11%
For the period ended
January 31, 1996(2)** 1.00% 1.54% 3.49% 2.95% 114.09%
IDAHO MUNICIPAL
BOND FUND
===============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1998 0.75% 1.02% 4.40% 4.13% 2.64%
For the years ended
January 31, 1998 0.75% 1.10% 4.47% 4.12% 17.64%
January 31, 1997 0.75% 1.24% 4.40% 3.91% 29.13%
January 31, 1996 0.75% 1.35% 4.52% 3.92% 58.94%
For the period ended
January 31, 1995(1)** 0.75% 1.38% 4.21% 3.58% 5.66%
RETAIL CLASS A:
For the six months ended
July 31, 1998 1.00% 1.27% 4.15% 3.88% 2.64%
For the year ended
January 31, 1998 1.00% 1.37% 4.22% 3.85% 17.64%
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%
RETAIL CLASS B:
For the period ended
July 31, 1998(3)** 1.65% 2.31% 3.41% 2.75% 2.64%
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS, END
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS END TOTAL OF PERIOD
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000)
--------- ---------- ------------- ------------- -------------- ------------ ------- -----------
MUNICIPAL
BOND FUND
=========
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C> <C> <C>
July 31, 1998 $10.38 0.24 (0.24) -- (0.04) $10.34 3.00%* $61,958
For the year ended
January 31, 1998 $10.02 0.48 (0.48) (0.12) 0.48 $10.38 9.90% $63,028
For the period ended
January 31, 1997(4)** $10.00 0.12 (0.12) -- 0.02 $10.02 1.34%* $53,067
RETAIL CLASS A:
For the six months ended
July 31, 1998 $10.38 0.23 (0.23) -- (0.04) $10.34 2.82%* $ 8,809
For the year ended
January 31, 1998 $10.01 0.46 (0.46) (0.12) 0.49 $10.38 9.78% $ 9,943
For the period ended
January 31, 1997(5)** $10.01 0.15 (0.15) -- -- $10.01 1.48%* $ 4,895
RETAIL CLASS B:
For the period ended
July 31, 1998(3)** $10.27 0.10 (0.10) -- 0.07 $10.34 1.53%* $ 559
</TABLE>
<TABLE>
<CAPTION>
RATIO RATIO OF
OF EXPENSES NET INCOME
RATIO TO AVERAGE RATIO OF TO AVERAGE
OF EXPENSES NET ASSETS NET INCOME NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
NET ASSETS WAIVERS) NET ASSETS WAIVERS) RATE
----------- ----------- ---------- ---------- ---------
MUNICIPAL
BOND FUND
=========
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C>
July 31, 1998 0.75% 0.95% 4.75% 4.55% 29.65%
For the year ended
January 31, 1998 0.75% 1.05% 4.72% 4.42% 93.18%
For the period ended
January 31, 1997(4)** 0.75% 1.07% 4.58% 4.26% 19.21%
RETAIL CLASS A:
For the six months ended
July 31, 1998 1.00% 1.20% 4.50% 4.30% 29.65%
For the year ended
January 31, 1998 1.00% 1.32% 4.48% 4.16% 93.18%
For the period ended
January 31, 1997(5)** 1.00% 1.29% 4.35% 4.06% 19.21%
RETAIL CLASS B:
For the period ended
July 31, 1998(3)** 1.65% 2.21% 3.83% 3.27% 29.65%
<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 MAY 1, 1998.
(4) COMMENCED OPERATIONS ON NOVEMBER 1, 1996.
(5) COMMENCED OPERATIONS ON NOVEMBER 4, 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.
39
<PAGE>
JULY 31, 1998 (UNAUDITED)
Notes to Financial Statements
1. ORGANIZATION
================================================================================
The Achievement Funds Trust (the "Trust"), formerly the FSB Funds, was
organized as an unincorporated business trust under the laws of the Commonwealth
of Massachusetts pursuant to a Master Trust Agreement dated December 16, 1988,
which agreement was amended and restated on October 7, 1994 and further amended
on December 1, 1994.
The Trust is registered under the Investment Company Act of 1940, as
amended, as an open-end, management investment company. The Trust presently
consists of a series of seven funds (the "Funds") which includes the Equity Fund
and the Balanced Fund (the "Stock Funds") and the Intermediate Term Bond Fund,
the Short Term Bond Fund, the Short Term Municipal Bond Fund, the Idaho
Municipal Bond Fund and the Municipal Bond Fund (the "Bond Funds"). The Funds'
prospectuses provide a description of each Fund's investment objective, policies
and strategies. The Trust is registered to offer three classes of shares,
Institutional, Retail Class A and Retail Class B. 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 on 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.
40
<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.
MANAGEMENT ESTIMATES -- The preparation of financial statements in accordance
with generally accepted accounting principles requires management to make
certain estimates and assumptions that may affect the reported amounts and
disclosures in the financial statements. Actual results could differ from those
estimates.
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 pay them on the first business day of the
following month. Any net realized capital gains on sales of securities for a
Fund are distributed to its shareholders at least annually.
Income distributions and capital gain distributions are determined in
accordance with U.S. federal income tax regulations, which may differ from
generally accepted accounting principles. These book/tax differences are either
temporary or permanent in nature. To the extent these differences are permanent,
they are reclassified for book purposes. As of July 31, 1998, $11,618 has been
reclassified in the Equity Fund from undistributed net investment income to
accumulated net realized gain. This reclassification has 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.
(CONTINUED)
41
<PAGE>
JULY 31, 1998 (UNAUDITED)
Notes to Financial Statements (CONTINUED)
3. INVESTMENT ADVISORY AND CUSTODIAL SERVICES
================================================================================
Pursuant to an investment advisory agreement dated December 27, 1994, as
amended, investment advisory services are provided to the Funds by First
Security Investment Management, Inc. (the "Adviser"). The Adviser is entitled to
receive an annual fee of 0.74% of the average daily net assets of the Stock
Funds and 0.60% of the average daily net assets of the Bond Funds. Such fee is
computed daily and paid monthly. During the period ended July 31, 1998, the
Adviser voluntarily waived a portion of its fees in order to limit operating
expenses.
The Trust and First Union National 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
Investments Mutual Funds Services ("SIMFS") acts as the Trust's Administrator.
Under the terms of such an agreement, SIMFS is entitled to receive an annual fee
of 0.20% of the average daily net assets of the Equity Fund, Balanced Fund,
Intermediate Term Bond Fund, Short Term Bond Fund and the Municipal Bond Fund.
The Administrator is entitled to a fee from the Short Term Municipal Bond Fund
and the Idaho Municipal Bond Fund in an amount equal to the greater of 0.20% of
their daily net assets or $100,000 per annum. The Administrator has voluntarily
agreed to waive a portion of its fee for the period ended July 31, 1998 for the
Short Term Municipal Bond Fund and the Idaho Municipal Bond Fund in order to
limit operating expenses.
Pursuant to an agreement dated December 27, 1994, DST Systems, Inc. ("DST")
acts as the Transfer Agent of the Trust. As such, DST provides transfer agency,
dividend disbursing, shareholder servicing and administrative services for the
Trust.
SEI Investments Distribution Co. (the "Distributor"), a wholly owned
subsidiary of SEI Investments Company, acts as the Trust's Distributor pursuant
to a distribution agreement dated December 27, 1994. The Distributor receives no
fee for its services in connection with distribution of the Institutional
shares. The Trust has adopted a Distribution Plan (the "Class A Plan") on behalf
of the Retail Class A shares pursuant to Rule 12b-1 under the Investment Company
Act of 1940. The Class A Plan provides for the payment by the Trust to the
Distributor of up to 0.25% of the average daily net assets of the Retail Class A
shares. The Retail Class B shares have adopted a Distribution Plan (the "Class B
Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940. The
Class B Plan provides for payment to the Distributor of a distribution fee of up
to 0.75% of the average daily net assets of the Class B shares and a shareholder
servicing fee up to 0.25% of the average daily net assets of the Class B shares.
The Distributor has elected to collect a distribution fee for the Class B shares
of the Municipal Bond Fund and Idaho Municipal Bond Fund of 0.65% per annum, but
reserves the right to collect the full the distribution fee payable under the
Class B Plan at any time.
42
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
A contingent deferred sales charge (CDSC) is imposed on certain redemptions
of Retail Class B shares. The CDSC varies depending on the number of years from
the time of payment for the purchase of Retail Class B shares until the
redemption of such shares.
YEARS SINCE CONTINGENT DEFERRED
PURCHASE MADE SALES CHARGE
---------------------------------------------------------
First .................................. 5%
Second ................................. 4%
Third .................................. 4%
Fourth ................................. 3%
Fifth .................................. 2%
Sixth .................................. 1%
Seventh and Following .................. None
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust.
5. INVESTMENT TRANSACTIONS
================================================================================
The cost of security purchases and the proceeds from the sale of
securities, other than short-term investments for the period ended July 31,
1998, are presented below for the Funds. On July 31, 1998 the total cost of
securities and the net realized gains and losses on securities sold for federal
income tax purposes was not materially different from amounts reported for
financial reporting purposes. The aggregate gross unrealized gain or loss on
securities at July 31, 1998 for each Fund is as follows:
(CONTINUED)
43
<PAGE>
JULY 31, 1998 (UNAUDITED)
Notes to Financial Statements (CONTINUED)
FUND INVESTMENT TRANSACTIONS (000)
<TABLE>
<CAPTION>
SHORT TERM IDAHO
INTERMEDIATE SHORT MUNICIPAL MUNICIPAL MUNICIPAL
EQUITY BALANCED TERM BOND TERM BOND BOND BOND BOND
FUND FUND FUND FUND FUND FUND FUND
======= ======== ============ ========= ========== ========= =========
Purchases
U.S. Government
<S> <C> <C> <C> <C> <C> <C> <C>
Securities $ -- $ 6,978 $ 18,452 $ 5,000 $ -- $ -- $ --
Other 91,652 43,374 11,581 3,014 1,241 3,096 20,187
Sales
U.S. Government
Securities -- 4,027 13,185 3,017 -- -- --
Other 84,938 47,402 6,399 6,831 2,627 933 22,144
Aggregate gross
unrealized gain 67,100 38,427 3,408 98 99 1,521 1,450
Aggregate gross
unrealized loss (11,068) (7,227) (551) (85) (19) (9) (227)
------- ------- -------- -------- -------- ------ --------
Net unrealized gain $56,032 $31,200 $ 2,857 $ 13 $ 80 $1,512 $ 1,223
======= ======= ======== ======== ======== ====== ========
</TABLE>
At July 31, 1998, 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:
<TABLE>
<CAPTION>
INTERMEDIATE SHORT
TERM BOND TERM BOND
FUND FUND
============ =========
<S> <C> <C> <C>
Carryforwards to Expire in 2004 $1,567,931 $2,034,615
Carryforwards to Expire in 2005 519,195 8,234
Carryforwards to Expire in 2006 468,346 226,204
</TABLE>
44
<PAGE>
THE ACHIEVEMENT FUNDS TRUST
6. CONCENTRATION OF CREDIT RISK
================================================================================
The Short Term Municipal Bond Fund, the Idaho Municipal Bond Fund and the
Municipal Bond Fund invest in debt instruments of municipal issuers. The
issuer's ability to meet their obligations may be affected by economic
developments in a specific state or region. The Idaho Municipal Bond Fund
invests primarily in obligations of municipalities located in Idaho. The Short
Term Municipal Bond Fund, the Idaho Municipal Bond Fund and the Municipal Bond
Fund invest in securities which include revenue bonds, tax exempt commercial
paper, tax and revenue anticipation notes, and general obligation bonds. At July
31, 1998, the percentage of total value of investments by each revenue source
was as follows:
<TABLE>
<CAPTION>
SHORT TERM IDAHO
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
========== ========= =========
<S> <C> <C> <C>
Cash Equivalents 1% 1% 1%
Education Bonds 14% 5% 11%
General Obligation 37% 70% 10%
Hospital Bonds 16% 6% 20%
Housing Bonds 5% 5% 29%
Public Facility Bonds 5% 3% 3%
Other Revenue Bonds 7% 5% 12%
Transportation Bonds 4% 3% 4%
Utility Bonds 11% 2% 10%
----- ----- ------
100% 100% 100%
===== ===== ======
</TABLE>
Many municipalities insure their obligations with insurance underwritten by
insurance companies that undertake to pay a holder, when due, the interest and
principal amount on an obligation if the issuer defaults on its obligation.
Although bond insurance reduces the risk of loss due to default by the issuer,
there is no assurance that the insurance company will meet its obligations.
Also, some of the securities have credit enhancements (letters of credit or
guarantees issued by third party domestic or foreign banks or other
institutions). At July 31, 1998, 45%, 67% and 48% 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.
(CONTINUED)
45
<PAGE>
JULY 31, 1998 (UNAUDITED)
Notes to Financial Statements (CONCLUDED)
The ratings of debt holdings by Standard & Poor's or Moody's as a
percentage of total value of investments at July 31, 1998 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 65% 39% 63% 78% 44%
AA+ -- -- 7% -- 6%
AA 2% -- 2% 5% 14%
AA- 4% 6% 9% 5% 3%
A+ 3% 24% -- 2% 2%
A 13% 21% 6% 1% 3%
A- 5% 6% 5% 3% 8%
BBB+ 6% 2% -- -- 5%
BBB 2% 2% 6% 3% 10%
BBB- -- -- 2% -- 2%
B -- -- -- -- 1%
Not rated -- -- -- 3% 2%
----- ----- ----- ----- -----
100% 100% 100% 100% 100%
===== ===== ===== ===== =====
</TABLE>
7. LINE OF CREDIT
================================================================================
Pursuant to a credit agreement dated October 9, 1997, 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 $20,000,000. The aggregate amount of all loans outstanding to an
individual Fund shall not exceed 5% of the total net assets of that Fund. As of
July 31, 1998, none of the Funds had loans outstanding. For the period ended
July 31, 1998, the maximum amount borrowed was $500,000, the average outstanding
was $19,337, and the daily weighted average interest rate was 8.50%.
46
<PAGE>
- --------------------------------------------------------------------------------
The Achievement Funds
BOARD OF TRUSTEES
George L. Denton, Jr.
James H. Gardner
August Glissmeyer, Jr.
Blaine Huntsman
Robert G. Love
Carl S. Minden
Frederick A. Moreton, Jr.
Kent H. Murdock
John L. Rudisill
INVESTMENT ADVISER
First Security Investment Management, Inc.
Salt Lake City, UT 84111
ADMINISTRATOR
SEI Investments Mutual Funds Services
Oaks, PA 19456
DISTRIBUTOR
SEI Investments Distribution Co.
Oaks, PA 19456
LEGAL COUNSEL
Ballard Spahr Andrews & Ingersoll
Philadelphia, PA 19103
INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
Princeton, NJ 08540
CUSTODIAN
First Union National Bank
Philadelphia, PA 19101
<PAGE>
[ACHIEVEMENT FUNDS LOGO OMITTED]
THE
ACHIEVEMENT
FUNDS[REGISTERED MARK]
FOR YOUR LIFE'S JOURNEY[REGISTERED MARK]
Shares of any of The Achievement Funds are:
[BULLET] not obligations or deposits of, or guaranteed by First Security
Corporation or any of its banks or non-bank subsidiaries;
[BULLET] not federally insured by the FDIC, the Federal Reserve Board or any
other government agency;
[BULLET] subject to investment risk, including the possible loss of principal.
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Funds. This report is not
authorized for distribution to prospective investors in a Fund unless preceded
or accompanied by a current prospectus.
FOR MORE INFORMATION, INCLUDING A PROSPECTUS,
CALL 1-800-472-0577.
ACH-F-016-04
SEMI-ANNUAL
REPORT TO
SHAREHOLDERS
- -------------
JULY 31, 1998
[PHOTO OF SNOW MOUNTAINS OMITTED]
[PHOTO OF ROCK ARCH OMITTED]
[PHOTO OF GREEN LANDSCAPE OMITTED]
[ACHIEVEMENT FUNDS LOGO OMITTED]
THE
ACHIEVEMENT
FUNDS[REGISTERED MARK]
FOR YOUR LIFE'S JOURNEY[REGISTERED MARK]
