TABLE OF CONTENTS
Letter to Shareholders ......................... 2
Fund Objectives ................................ 3
Investment Adviser's Report .................... 4
Financial Statements ........................... 10
Notes to Financial Statements .................. 38
- ----------------------------------------------------
The Achievement Funds
Semi-Annual Report
JULY 31, 1999
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 Idaho Municipal Bond Fund
The Achievement Municipal Bond Fund
[LOGO]
<PAGE>
Letter to Shareholders
Once again, it is our pleasure to provide you with the Achievement Funds
Semi-Annual Report to Shareholders. This will be our last official report to
you, our fellow shareholders, until the Year 2000 and we are pleased to report
that we have completed our preparations related to Year 2000 technology issues
and look forward to the continued growth of our fund family into the 21st
century. Also on a technology note, we have just completed the Achievement Funds
web site and invite you to visit our site at www.achievementfunds.com to learn
more about our products and services, view and download fund prospectuses,
obtain current fund performance information, use our various investment planning
tools and much more.
The first half of 1999 has once again provided the foundation for double-digit
returns in the stock market for the year, while bond markets have suffered from
interest rate hikes both implemented and threatened by the Federal Reserve. This
trend reinforces our basic philosophy that diversification in investing, with a
long-term focus, does indeed provide the formula for maximum long-term returns
for investors. The accompanying Investment Adviser's report by Sterling K.
Jenson provides additional insight to the current market conditions as well as
his outlook with regard to each of our funds.
We want to sincerely thank you for your continued 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 contacting 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
2
<PAGE>
THE ACHIEVEMENT FUNDS
Fund Objectives
STOCK AND BALANCED FUNDS
- --------------------------------------------------------------------------------
THE ACHIEVEMENT EQUITY FUND
To provide long-term capital appreciation with current income as a secondary
consideration in selecting portfolio securities.
THE ACHIEVEMENT BALANCED FUND
To provide a total return (both income and capital appreciation) consistent with
prudent investment risk.
BOND FUNDS
- --------------------------------------------------------------------------------
THE ACHIEVEMENT INTERMEDIATE TERM BOND FUND
To provide income consistent with prudent investment risk and maintenance of
appropriate liquidity.
THE ACHIEVEMENT SHORT TERM BOND FUND
To preserve principal value and maintain a high degree of liquidity while
providing current income.
THE ACHIEVEMENT 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
<PAGE>
Investment Adviser's Report
It's theory versus reality. On the theory side, economic science dictates that
inflation should be experiencing upside pressures from strong economic growth, a
tight labor market, freewheeling consumer spending and recently rising commodity
prices. Reality paints a different story with strong competitive forces keeping
prices low, labor productivity gains, weak foreign economies, and adequate money
supply causing inflation to be well contained. What's an economist to do,
especially when he has been trained under Keynesian theory and its debunked
Phillips Curve?
Federal Reserve Chairman Alan Greenspan is just as perplexed as the rest of us.
He has recently given credibility to the "New Age" thinking that strong growth
and low inflation can coincide while still clinging to the old-line theory. And
it appears that traditional thought is winning out with the two recent rate
increases preemptively striking out at the illusive, non-existent inflation
apparition. These rate hikes have occurred even with GDP growth slowing from
4.3% in the first quarter to 1.8% in the second quarter of 1999. Gold prices
remain below $260 per ounce, a 20-year low. Gold has generally been one of the
best indicators of future inflation. Pricing competition remains extraordinary
across many economic sectors. Certainly, there seems to be little justification
for the Fed's recent rate increases and no reason for any additional bumps in
the rates through the remainder of this year.
With the Dow Jones Industrial Average above 11,000 recently, up from the 9200
level at the beginning of the year, Greenspan has also begun pricking at the
market bubble to deflate it somewhat. His rhetoric hasn't been quite as strong
as his "irrational exuberance" statement given over 3 years ago with the Dow at
6600, but he has certainly warned market players that the Fed may interfere if
the party continues much beyond present levels. His feelings about market
overvaluation are derived from a somewhat simplistic model that he uses which
compares the 10-year U.S. Treasury bond yield to the earnings yield of the stock
market. Market strategists have shown a flaw in his model in that it doesn't
adequately discount future earnings growth into the present value. They have
reasoned that with this adjustment, Greenspan's model would show that the market
is fairly valued today.
Our outlook for the stock market continues to be positive. Y2K will be over in
four months and global economies will likely be healthier over the next year.
The recent decline in the dollar will improve the competitiveness of
multinational corporations and reduce translation drag, generating fatter
profits. Earnings, which should grow 12% this year, will likely be up the same
amount in 2000. Inflation should continue at modest levels with the selling
price (CPI) outrunning the cost of goods (PPI), thereby allowing margins to
expand. Commodity prices should moderate with oil prices declining through the
remainder of the year. Any Y2K anxiety should melt into a likely "feel-good"
confidence brought on by the new Millennium, resulting in a January effect of
unprecedented proportions. Investor nervousness through the typical difficult
fall months should be met by proactive positioning of investments for next year.
4
<PAGE>
THE ACHIEVEMENT FUNDS
THE ACHIEVEMENT EQUITY FUND
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The stock market through the first half of the year has responded positively to
the robust 3% growth in the economy and the double-digit growth in corporate
earnings. Seeking to undermine the favorable earnings momentum, however, is the
level of interest rates, which have risen more than 130 basis points or 1.3%
since the low last October. The rise in interest rates has made the valuations
in the market appear high relative to historic levels.
It is true that the stock market is often not well liked in the third quarter.
In fact, August through October tends to be a trying time for investors. Some
obvious examples of this volatility include 1987, 1990, 1997, and 1998. With the
Fed having raised rates twice over the past two months, investors may remain
nervous for the next several months as each economic statistic is scrutinized
for future inflation implications.
Regardless of the near term movements in stock prices, we feel that attempts to
time the short-term cycle would prove folly. We choose to remain fully invested
in high quality stocks exemplifying good earnings momentum. Companies with
strong management, sound financial structure, and dominant market presence will
continue to perform well over the long-term. We are presently overweighting
sectors with visible earnings strength such as technology, healthcare,
communications, and consumer cyclicals.
It is expected that some Y2K volatility may creep into the market before the end
of the year, but we believe the limit of the risk to the market will be more
investor psychology than a catastrophic shut-down of corporate operations.
Surely some investors plan to withdraw money from the stock market prior to the
turn of the century but we believe that come December, investors will be quick
to take advantage of the cheaper market prices and jump back into stocks. We
recommend sticking to long-term investment objectives and "riding out" any
market volatility. With strong corporate profits, robust economic growth, and
benign inflation, the stock market should continue to find its way higher as it
has done historically.
THE ACHIEVEMENT BALANCED FUND
- --------------------------------------------------------------------------------
Worldwide stability and the potential for subsequent growth has renewed the
inflation fears of both investors and policy makers. The result has been an
increase in interest rates and some wild sector shifts in the stock market. The
Federal Reserve has increased short term rates by 50 basis points to head off
any potential inflation. We believe that 50 basis points is all that is needed
and that the U.S. economy should now resume its moderate growth low inflation
path. This is good news for both stocks and bonds. Stocks should benefit from
the continued economic growth and bonds should increase in value as low
inflation helps push interest rates lower. To participate in the anticipated
continued growth of our economy, the Achievement Balanced Fund remains more
heavily weighted to stocks than to bonds. The Fund's asset allocation as of July
31, 1999 is 67% equity, 31% bonds and 2% cash equivalents.
The Fund's equity portion is currently overweighted in communication services,
consumer cyclicals and finance. The largest underweighted sectors relative
5
<PAGE>
to the S&P 500 are consumer staples, utilities and basic materials. We are firm
believers that we will have continued moderate economic growth with very little
inflation. The equity holdings are concentrated in companies that benefit from
such an environment. Consumers continue to fuel this economy. The low
unemployment rate combined with stable to falling prices on many consumer goods
should create a strong economic force. The sectors we have overweighted all sell
to and benefit from the strong consumer base we now have in this country.
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 to grow but at very
moderate levels. The moderate growth combined with low inflation should result
in a positive environment for bonds. We expect interest rates to remain constant
or decrease moderately over the next year. The longer maturity and duration of
the Fund's bond allocation should benefit in this forecast.
Looking forward, we expect that both the bond and stock markets will react
favorably to an economy that continues to grow in the absence of inflation. We
believe that earnings growth will increase even more over the next twelve months
and that valuations will likewise increase. The Achievement Balanced Fund will
maintain its asset allocation mix, within limitations outlined in the
prospectus, to benefit from this predicted slow growth low inflation
environment.
THE ACHIEVEMENT INTERMEDIATE TERM BOND FUND
- --------------------------------------------------------------------------------
Interest rates, as measured by the 30-year Treasury, increased by approximately
1% between the end of January and the end of July. Investors have reacted to a
continued strong economy and the fear for potential inflation by requiring
higher yields on fixed income securities. The Federal Reserve increased the Fed
Funds target rate by 25 basis points in June and by another 25 basis points in
August to keep potential inflation bottled up.
The result of the higher interest rates has been a decline in the value of bonds
and bond funds. The 30-year Treasury had a year-to-date return, through July, of
- -11.45%, while the 5-year Treasury was less negatively impacted at -2.36% for
the same period.
Yield spreads for non-Treasury securities over Treasuries have been quite wide
as the market digests huge amounts of new issuance. The increased desire for
maximum liquidity, as we approach the end of the century, has also had an impact
on spread levels.
We think that the Federal Reserve is likely done increasing the Fed Funds Target
rate for the year. The tightening moves have left the Treasury yield curve
flatter as short rates have risen. We expect the 30-year Treasury to trade in a
range of 5.75% to 6.25% for the remainder of the year.
The Intermediate Term Bond Fund is positioned to take advantage of relatively
stable rates and attractive non-Treasury spread levels while still maintaining
high average credit quality.
6
<PAGE>
THE ACHIEVEMENT FUNDS
THE ACHIEVEMENT SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
Interest rates as measured by the 2-year Treasury increased by approximately 1%
between the end of January and the end of July. Investors have reacted to a
continued strong economy and the fear for potential inflation by requiring
higher yields on fixed income securities. The Federal Reserve increased the Fed
Funds target rate by 25 basis points in June and by another 25 basis points in
August to keep potential inflation bottled up.
The result of the higher interest rates has been a decline in the value of bonds
and bond funds. The advantage of a short fund is that the impact is less than it
is for a longer fund. The 2-year Treasury had a year-to-date return through July
of 0.94%. The relatively short duration of 1.38 and average weighted maturity of
1.61 years allows for the maintenance of a very stable net asset value over
time.
Because of the recent increases in the Fed Funds target rate and its impact on
other short term rates, the yield advantage the Short Term Fund has been
enjoying over money market funds will likely be lessened near-term.
THE ACHIEVEMENT IDAHO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Idaho municipal securities remain a valued commodity amongst both retail and
institutional investors. Strong employment trends and robust growth in Idaho's
service and technology sectors continue to offset the state's economic exposure
to farming. Lower commodity prices and tight labor markets remain the primary
challenges to the agriculture sector. Despite the overwhelming demand for Idaho
paper, yields have migrated higher in conjunction with the national market.
Interest rates on 15 year, AAA-rated general obligation municipal bonds rose
from 4.50% to 5.28% since January 31, 1999. The greater-than-anticipated advance
in yield (78 basis points) has been the result of two Federal Reserve 25 basis
point tightenings and significant changes in critical factors effecting
municipal bond demand.
The municipal market has become relatively "cheap" in the last three months as a
result of two principle factors: 1) Institutional demand has dried up while
supply has remained steady. One of the largest purchasers of municipal
securities (property & casualty insurance companies) has shifted their
fixed-income demand to corporate securities as their spreads have widened over
Treasuries. 2) Unfavorable tax treatment (AMD) for deep discount bonds has
strangled demand for this segment and created a "coupon conundrum." As a result,
Idaho bonds priced below 96 are surprisingly illiquid.
7
<PAGE>
Despite the tremendous demand for Idaho paper by retail investors, the state is
not immune to the gyrations of the global economy. Strong growth, tight labor
markets and higher-than-expected wage/benefit compensation has propelled
interest rates to 12-month highs. It is our expectation that the Federal
Reserve's recent increase of the Fed Funds rate to 5.25% sets the stage for the
gradual diminution of economic growth to more inflation-friendly levels.
Currently, the Achievement Idaho Municipal Bond Fund maintains an average-
weighted maturity of 14.59 years and a duration measurement of 8.44 years. We
would expect to modestly increase duration to 10 years in light of our
expectation that inflation will remain subdued and GDP growth moderates. The
Fund maintains superior quality with nearly 80% of assets rated AA or better,
and well over half of the portfolio is insured. Additionally, we constantly
appraise the Idaho market for value, which may occur for a variety of reasons.
Some of the reasons include buyer preferences for specific structures,
underlying credit uncertainties, or investor unwillingness or lack of ability to
analyze special redemption language and prepayment probabilities. The Fund may
emphasize different sectors or maturity structures of the Idaho market depending
on the attractiveness relative to historical norms and/or current opportunities.
As such, we continue to find interesting opportunities in housing, health care
and premium bonds. Our geographic exposure is broad-based throughout the state
and sector diversification includes appropriate positions in health, education,
transportation, building, housing, and miscellaneous general obligation/revenue
bonds.
THE ACHIEVEMENT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Interest rates on 15 year, A-rated general obligation municipal bonds rose from
4.73% to 5.55% since January 31, 1999. The greater-than-anticipated advance in
yield (82 basis points) has been the result of two Federal Reserve 25 basis
point tightenings and significant changes in critical factors effecting
municipal bond demand.
The municipal market has become relatively "cheap" in the last three months as a
result of two principle factors: 1) Institutional demand has dried up while
supply has remained steady. One of the largest purchasers of municipal
securities (property & casualty insurance companies) has shifted their
fixed-income demand to corporate securities as their spreads have widened over
Treasuries. 2) Unfavorable tax treatment (AMD) for deep discount bonds has
strangled demand for this segment and created a "coupon conundrum." As a result,
bonds priced below 97 are surprisingly illiquid.
In regards to the Federal Reserve, the recent decision to raise the Fed Funds
rate to 5.25% has been accepted by the capital markets as a preemptive step to
contain potential inflation. Strong growth, tight labor markets and
higher-than-expected wage/benefit compensation has propelled interest rates to
12-month highs. It is our expectation that the Federal Reserve's recent action
sets the stage for the gradual diminution of economic growth to more
inflation-friendly levels.
8
<PAGE>
THE ACHIEVEMENT FUNDS
Based on recent Fed action and substantive economic data, we remain very
optimistic regarding the relative attractiveness of the municipal market.
Currently, the Achievement Municipal Bond Fund maintains an average-weighted
maturity of 17.90 years and a duration measurement of 11.18 years. We expect to
keep duration between 11-12 years, while maintaining ample flexibility to seize
upon value-added opportunities throughout the national tax-free market. We
constantly appraise the fixed-income arena for value, which may occur for a
variety of reasons. Some of the reasons include buyer preferences for specific
structures, 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
and/or current opportunities. As such, we continue to find interesting
opportunities in health care and premium bonds. Our geographic exposure is
broad-based and continues to be represented by more than 40 states and
territories. Additionally, the Achievement Municipal Bond Fund constantly
reviews the credit risk of the portfolio, where U.S. Treasuries back many of the
positions. Quality remains a priority.
/s/ signature omitted
- ------------------------------------------
STERLING K. JENSON
President
First Security Investment Management, Inc.
Investment Adviser
9
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
- --------------------------------------------------------------------------------
EQUITY FUND
- --------------------------------------------------------------------------------
In the printed version of the document, a pie chart appears which depicts the
following plot points:
[Pie Chart Omitted]
Oil-Energy 6.7%
Retail 9.5%
Consumer Products 11.5%
Chemicals and Drugs 11.8%
Real Estate Investment Trust 2.6%
Technologies 33.3%
Financial 12.4%
Other 12.2%
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 97.4%
AUTOMOTIVE -- 0.7%
General Motors 33,000 $ 2,011
-------
BANKS -- 5.1%
Bank of America 75,000 4,978
Bank One 100,000 5,456
Wells Fargo 100,000 3,900
-------
14,334
-------
BEAUTY PRODUCTS -- 1.6%
Gillette 100,000 4,381
-------
CAPITAL GOODS -- 4.2%
General Electric 110,000 11,990
-------
CHEMICALS -- 1.0%
Monsanto 75,000 2,934
-------
COMPUTER SOFTWARE -- 4.7%
America Online* 50,000 4,756
Microsoft* 100,000 8,581
-------
13,337
-------
COMPUTERS & SERVICES -- 10.0%
Cisco Systems* 114,000 7,082
Dell Computer* 80,000 3,270
Hewlett Packard 56,000 5,862
International Business Machines 62,000 7,793
Oracle* 110,000 4,187
-------
28,194
-------
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
CONGLOMERATE -- 4.4%
Tyco International 129,000 $12,602
-------
DRUGS -- 9.9%
Abbott Laboratories 100,000 4,294
American Home Products 60,000 3,060
Merck 80,000 5,415
Pfizer 180,000 6,109
Schering Plough 100,000 4,900
Warner Lambert 65,000 4,290
-------
28,068
-------
ENTERTAINMENT -- 2.9%
Carnival 134,000 6,223
Walt Disney 68,000 1,878
-------
8,101
-------
FINANCIAL SERVICES -- 7.3%
American Express 40,000 5,270
Capital One Financial 165,000 7,652
Federal National Mortgage
Association 55,000 3,795
Morgan Stanley Dean Witter 45,000 4,056
-------
20,773
-------
FOOD, BEVERAGE & TOBACCO -- 3.7%
Coca-Cola 85,000 5,127
PepsiCo 135,000 5,282
-------
10,409
-------
HOLDING COMPANY -- 1.9%
Berkshire Hathaway, CL B* 2,520 5,368
-------
INSURANCE -- 3.4%
American International Group 54,000 6,271
Citigroup 75,000 3,342
-------
9,613
-------
MEDICAL PRODUCTS & SERVICES -- 0.9%
Johnson & Johnson 27,000 2,487
-------
PETROLEUM PRODUCTS & SERVICES -- 6.7%
Coastal 100,000 3,956
Exxon 66,000 5,239
Mobil 45,000 4,601
Texaco 85,000 5,297
-------
19,093
-------
PRINTING & PUBLISHING -- 1.8%
McGraw-Hill 100,000 5,087
-------
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
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Shares/Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
RETAIL -- 7.9%
Albertson's 63,000 $ 3,130
Dayton-Hudson 107,000 6,922
Home Depot 100,000 6,381
Wal-Mart Stores 140,000 5,915
--------
22,348
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 4.8%
Analog Devices* 110,000 4,744
Intel 130,000 8,970
--------
13,714
--------
TELEPHONES & TELECOMMUNICATION -- 13.8%
AT&T 130,000 6,752
Lucent Technologies 160,000 10,410
MCI WorldCom* 125,000 10,312
Qwest Communications
International* 190,000 5,605
SBC Communications 107,000 6,119
--------
39,198
--------
WHOLESALE -- 0.7%
U.S. Foodservice* 50,000 2,122
--------
TOTAL COMMON STOCKS
(Cost $186,071) $276,164
--------
CASH EQUIVALENTS -- 2.6%
SEI Daily Income Trust
Money Market Portfolio $ 1,758 1,758
SEI Daily Income Trust Prime
Obligation Portfolio 5,560 5,560
--------
TOTAL CASH EQUIVALENTS
(Cost $7,318) 7,318
--------
TOTAL INVESTMENTS -- 100.0%
(Cost $193,389) 283,482
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% 16
--------
- --------------------------------------------------------------------------------
Market
Description Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par value)
based on 14,825,993 outstanding shares
of beneficial interest $164,947
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 669,278. outstanding shares
of beneficial interest 9,652
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 143,332. outstanding shares
of beneficial interest 2,365
Overdistributed net investment income (132)
Accumulated net realized gain on investments 16,573
Net unrealized appreciation on investments 90,093
--------
TOTAL NET ASSETS -- 100.0% $283,498
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $18.13
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $18.09
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($18.09 divided by 95.5%) $18.94
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B $17.92
========
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* Non-income producing security
Cl -- Class
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
[Pie Chart Omitted]
Other 7.2%
Corporate Securities 12.5%
Treasury Obligations 12.3%
Non-Agency Mortgage-Backed Securities 1.4%
Common Stocks 66.6%
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 12.3%
U. S. Treasury Notes
7.750%, 11/30/99 $ 2,500 $ 2,522
7.750%, 02/15/01 2,500 2,580
7.875%, 08/15/01 2,500 2,604
7.500%, 05/15/02 2,500 2,610
6.250%, 02/15/03 2,500 2,531
7.250%, 05/15/04 2,500 2,635
7.875%, 11/15/04 2,500 2,711
5.500%, 02/15/08 3,000 2,893
4.750%, 11/15/08 3,000 2,734
5.500%, 05/15/09 3,000 2,907
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $26,421) 26,727
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.9%
Federal Home Loan Bank
6.250%, 08/13/04 2,000 1,982
Federal Home Loan Mortgage Corporation
5.750%, 07/15/03 2,000 1,956
5.750%, 04/15/08 2,500 2,347
6.450%, 04/29/09 2,000 1,893
Federal National Mortgage Association
6.000%, 05/15/08 2,500 2,383
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $10,990) 10,561
-------
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 11.3%
ENTERTAINMENT -- 1.0%
Walt Disney, MTN
5.125%, 12/15/03 $ 2,255 $ 2,128
-------
FINANCE -- 7.1%
Aetna Services
7.125%, 08/15/06 1,500 1,470
Associates of North America, MTN
8.420%, 01/05/00 2,000 2,025
Banc One
7.250%, 08/01/02 1,500 1,528
BankAmerica, MTN
7.125%, 05/12/05 2,000 1,987
Chase Manhatten
6.500%, 01/15/09 2,000 1,902
First Union
7.500%, 07/15/06 2,000 2,035
Ford Motor Credit
7.750%, 10/01/99 2,000 2,007
6.250%, 11/08/00 1,000 1,000
Safeco
6.875%, 07/15/07 1,500 1,440
-------
15,394
-------
INDUSTRIAL -- 2.3%
Lucent Technologies
7.250%, 07/15/06 2,000 2,047
Philip Morris
7.250%, 09/15/01 2,000 2,022
Seagram, YB
6.500%, 04/01/03 1,000 980
-------
5,049
-------
RETAIL -- 0.9%
Albertson's
6.950%, 08/01/09 2,000 1,975
-------
TOTAL CORPORATE BONDS
(Cost $24,731) 24,546
-------
ASSET-BACKED SECURITIES -- 1.2%
American Southwest Financial Securities,
Series 1996-FHA1, Class A2
7.000%, 11/25/38 1,221 1,210
Olympic Automobile Receivables Trust,
Series 1995-E, Class A5
5.950%, 11/15/01 1,325 1,327
-------
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
Face Amount Market
Description (000)/Shares Value (000)
- --------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,555) $ 2,537
-------
MORTGAGE-BACKED SECURITIES -- 1.4%
Donaldson Lufkin Jenrette Mortgage
Association, Series 1997-CF1,
Class A1B (A)
7.600%, 04/15/07 $ 1,200 1,216
General Motors Acceptance Corporation,
Commercial Mortgage Securities,
Series 1991-C1, Class A1B
6.175%, 05/15/33 2,000 1,853
-------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $3,238) 3,069
-------
COMMON STOCKS -- 66.6%
AUTOMOTIVE -- 0.7%
General Motors 25,000 1,523
-------
BANKS -- 3.6%
Bank of America 37,368 2,480
Bank One 59,664 3,255
Wells Fargo 50,000 1,950
-------
7,685
-------
BEAUTY PRODUCTS -- 1.0%
Gillette 47,000 2,059
-------
CAPITAL GOODS -- 2.9%
General Electric 58,000 6,322
-------
CHEMICALS -- 0.5%
Monsanto 30,000 1,174
-------
COMPUTER SOFTWARE -- 2.5%
America Online* 6,000 571
Microsoft* 56,000 4,805
-------
5,376
-------
COMPUTERS & SERVICES -- 6.8%
Cisco Systems* 60,000 3,728
Dell Computer* 40,000 1,635
Hewlett Packard 20,000 2,094
International Business Machines 40,000 5,028
Oracle* 60,000 2,284
-------
14,769
-------
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
CONGLOMERATE -- 2.8%
Tyco International 62,000 $ 6,057
-------
CONTAINERS & PACKAGING -- 0.9%
Newell Rubbermaid 44,000 1,903
-------
DRUGS -- 7.2%
Abbott Laboratories 35,000 1,503
American Home Products 39,000 1,989
Merck 58,000 3,926
Pfizer 39,000 1,324
Schering Plough 50,000 2,450
SmithKline Beecham, ADR 32,000 1,922
Warner Lambert 38,000 2,508
-------
15,622
-------
ENTERTAINMENT -- 1.9%
Carnival 60,000 2,786
Walt Disney 49,000 1,354
-------
4,140
-------
FINANCIAL SERVICES -- 5.0%
American Express 23,000 3,030
Capital One Financial 63,000 2,922
Federal National Mortgage
Association 40,000 2,760
Morgan Stanley Dean Witter 23,000 2,073
-------
10,785
-------
FOOD, BEVERAGE & TOBACCO -- 2.5%
Coca-Cola 45,000 2,714
PepsiCo 67,000 2,621
-------
5,335
-------
HOLDING COMPANY -- 1.3%
Berkshire Hathaway, Cl B* 1,365 2,907
-------
INSURANCE -- 1.9%
American International Group 36,000 4,181
-------
MEDICAL PRODUCTS & SERVICES -- 0.6%
Johnson & Johnson 15,000 1,382
-------
PETROLEUM PRODUCTS & SERVICES-- 4.6%
Coastal 52,000 2,057
Exxon 36,000 2,858
Mobil 24,000 2,454
Texaco 42,000 2,617
-------
9,986
-------
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
Balanced Fund (concluded)
- --------------------------------------------------------------------------------
Shares/Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
PRINTING & PUBLISHING -- 0.9%
McGraw-Hill 40,000 $ 2,035
-------
RETAIL -- 4.9%
Albertson's 34,650 1,722
Dayton-Hudson 52,000 3,364
Home Depot 42,000 2,680
Wal-Mart Stores 66,000 2,789
-------
10,555
-------
SEMI-CONDUCTORS/INSTRUMENTS -- 3.0%
Analog Devices* 55,000 2,372
Intel 60,000 4,140
-------
6,512
-------
TELEPHONES & TELECOMMUNICATION-- 11.1%
AT&T 82,500 4,285
GTE 33,000 2,432
Lucent Technologies 92,000 5,986
MCI WorldCom* 62,000 5,115
Qwest Communications International* 60,000 1,770
SBC Communications 55,000 3,145
U.S. West 24,000 1,376
-------
24,109
-------
TOTAL COMMON STOCKS
(Cost $96,712) 144,417
-------
CASH EQUIVALENTS -- 1.9%
SEI Daily Income Trust Money
Market Portfolio $ 283 283
SEI Daily Income Trust Prime
Obligation Portfolio 3,820 3,820
-------
TOTAL CASH EQUIVALENTS
(Cost $4,103) 4,103
-------
TOTAL INVESTMENTS -- 99.6%
(Cost $168,750) 215,960
-------
OTHER ASSETS AND LIABILITIES, NET-- 0.4% 853
-------
- --------------------------------------------------------------------------------
Market
Description Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par value)
based on 15,085,399 outstanding shares
of beneficial interest $158,661
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 294,618 outstanding shares
of beneficial interest 3,510
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 129,109 outstanding shares
of beneficial interest 1,744
Undistributed net investment income 604
Accumulated net realized gain on investments 5,084
Net unrealized appreciation on investments 47,210
--------
TOTAL NET ASSETS-- 100.0% $216,813
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL CLASS $13.98
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- RETAIL CLASS A $13.96
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($13.96 divided by 95.5%) $14.62
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE RETAIL CLASS B $13.94
========
- --------------------------------------------------------------------------------
* Non-income producing security
(A) Private Placement
ADR -- American Depository Receipt
Cl -- Class
MTN -- Medium Term Note
YB -- Yankee Bond
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
INTERMEDIATE TERM BOND FUND
- --------------------------------------------------------------------------------
[Pie Chart Omitted]
Other 1.1%
Cash Equivalents 2.3%
Asset-Backed Securities 4.8%
Non-Agency Mortgage-Backed Securities 7.9%
U.S. Government Securities 49.4%
Corporate Securities 34.5%
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 32.9%
U.S. Treasury Bonds
7.625%, 02/15/07 $1,000 $1,036
7.125%, 02/15/23 2,000 2,189
6.250%, 08/15/23 2,000 1,984
6.000%, 02/15/26 2,000 1,924
6.500%, 11/15/26 1,000 1,026
U.S. Treasury Notes
6.250%, 08/31/00 1,000 1,008
7.750%, 02/15/01 2,500 2,580
7.875%, 08/15/01 1,500 1,562
6.375%, 09/30/01 4,000 4,054
7.500%, 11/15/01 1,000 1,038
6.250%, 08/31/02 4,000 4,048
6.250%, 02/15/03 1,000 1,012
5.500%, 05/31/03 3,000 2,960
5.375%, 06/30/03 2,000 1,966
5.750%, 08/15/03 1,000 995
5.875%, 02/15/04 3,000 3,000
7.500%, 02/15/05 1,000 1,069
6.500%, 08/15/05 2,000 2,047
5.875%, 11/15/05 1,000 992
6.875%, 05/15/06 1,000 1,045
7.000%, 07/15/06 2,000 2,102
6.500%, 10/15/06 6,000 6,137
6.250%, 02/15/07 3,000 3,030
------
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (continued)
6.125%, 08/15/07 $ 3,000 $ 3,006
5.625%, 05/15/08 3,000 2,912
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $55,428) 54,722
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 16.5%
Federal Farm Credit Bank
7.310%, 11/05/07 2,000 2,087
Federal Home Loan Bank
7.190%, 04/27/01 1,000 1,020
7.280%, 07/25/01 1,000 1,024
7.390%, 08/22/01 1,000 1,027
5.600%, 10/28/03 1,000 956
7.380%, 08/05/04 1,000 1,040
6.250%, 08/13/04 1,000 991
6.375%, 08/15/06 1,000 989
6.185%, 05/06/08 2,035 1,981
5.450%, 01/12/09 2,000 1,822
Federal Home Loan Mortgage Corporation
5.750%, 07/15/03 2,000 1,956
6.795%, 12/01/03 1,000 1,018
5.900%, 02/14/06 1,000 965
7.020%, 06/23/09 2,000 1,989
5.125%, 10/15/08 1,000 893
6.450%, 04/29/09 2,000 1,893
Federal National Mortgage Association, MTN
6.625%, 04/18/01 1,000 1,011
Federal National Mortgage Association
5.750%, 04/15/03 1,000 980
4.750%, 11/14/03 2,000 1,881
6.440%, 05/01/08 988 969
6.375%, 06/15/09 1,000 975
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $28,475) 27,467
-------
CORPORATE BONDS -- 34.5%
BANKS -- 6.0%
First Tennessee Bank
5.750%, 12/01/08 1,000 901
BankAmerica
7.125%, 05/01/06 2,000 1,982
Chase Manhattan
8.125%, 06/15/02 1,000 1,037
6.375%, 02/15/08 1,000 947
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
Intermediate Term Bond Fund (continued)
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
BANKS (continued)
Citicorp
7.125%, 06/01/03 $1,000 $ 1,014
First Union
7.050%, 08/01/05 1,000 1,001
J.P. Morgan
7.250%, 01/15/02 1,000 1,014
NationsBank
7.625%, 04/15/05 1,000 1,034
Society National Bank
7.250%, 06/01/05 1,000 1,009
-------
9,939
-------
ELECTRICAL UTILITIES -- 1.2%
Consolidated Edison
6.150%, 07/01/08 1,000 944
Scana, MTN
6.250%, 07/08/03 1,000 981
-------
1,925
-------
FINANCE -- 8.5%
Aetna Services
6.750%, 08/15/01 2,000 2,002
American General Finance
7.250%, 04/15/00 1,000 1,012
Associates of North America, MTN
6.810%, 08/03/01 1,000 1,005
7.540%, 04/14/04 1,000 1,022
Commercial Credit
6.875%, 05/01/02 1,000 1,009
Ford Motor Credit
8.000%, 06/15/02 1,000 1,032
7.750%, 03/15/05 1,000 1,031
General Motors Acceptance, MTN
7.250%, 05/15/03 1,000 1,009
Grand Metro
7.125%, 09/15/04 1,000 1,017
Household Finance
7.650%, 05/15/07 1,000 1,026
Lehman Brothers Holdings, MTN
6.125%, 07/15/03 1,000 960
Sears Roebuck Acceptance
6.950%, 05/15/02 1,000 1,006
Sears Roebuck Acceptance, MTN
6.580%, 11/20/03 1,000 987
-------
14,118
-------
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
INDUSTRIAL -- 12.0%
AT&T
6.750%, 04/01/04 $1,000 $ 1,001
CSR America
6.875%, 07/21/05 2,000 1,938
CSX Transportation
7.540%, 03/15/03 1,000 1,022
Dayton Hudson
7.500%, 07/15/06 2,000 2,063
Dow Capital, YB
7.125%, 01/15/03 1,000 1,009
Hertz
7.000%, 07/01/04 2,000 2,000
J.C. Penney, MTN
7.050%, 05/23/05 1,000 988
Kerr-McGee
6.625%, 10/15/07 1,000 951
Nabisco
6.700%, 06/15/02 1,000 995
Pacific Bell
7.000%, 07/15/04 1,000 1,009
Ryder Systems
7.340%, 11/01/00 1,040 1,049
Sara Lee, MTN
7.400%, 03/22/02 1,000 1,019
Texas Instruments, MTN
6.875%, 07/15/00 1,000 1,009
Wal-Mart Stores
6.500%, 06/01/03 1,000 999
Walt Disney
6.750%, 03/30/06 2,000 1,995
Waste Management
7.700%, 10/01/02 1,000 1,025
-------
20,072
-------
TELEPHONES & TELECOMMUNICATION -- 1.9%
GTE California
5.500%, 01/15/09 1,000 895
Southwestern Bell Telephone, MTN
5.750%, 09/01/04 1,000 952
U.S. West Communications
5.625%, 11/15/08 1,000 885
Worldcom
6.125%, 08/15/01 500 496
-------
3,228
-------
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
UTILITIES -- 4.9%
Consolidated Edison
6.375%, 04/01/03 $1,000 $ 993
Norfolk Southern
6.950%, 05/01/02 1,000 1,006
Pacific Gas & Electric, MTN
6.680%, 03/19/03 1,000 1,000
Philadelphia Electric
6.625%, 03/01/03 1,000 996
Public Service Electric & Gas
6.500%, 05/01/04 1,000 990
Rochester Gas & Electric, MTN
6.375%, 07/30/03 1,000 982
Southwestern Bell Telephone, MTN
6.250%, 03/12/01 1,150 1,150
Telstra
6.500%, 07/31/03 1,000 994
-------
8,111
-------
TOTAL CORPORATE BONDS
(Cost $58,660) 57,393
-------
ASSET-BACKED SECURITIES -- 4.8%
Champion Home Equity Loan Trust,
Series 1997-Z, Class A3
6.770%, 03/25/15 2,000 1,994
Olympic Automobile Receivables Trust,
Series 1995-E, Class A5
5.950%, 11/15/01 2,000 2,002
Olympic Automobile Receivables Trust,
Series 1996-B, Class A5
6.900%, 02/15/04 2,000 2,023
WFS Financial Owner Trust,
Series 1998-B, Class A4
6.050%, 04/20/03 2,000 1,988
------
TOTAL ASSET-BACKED SECURITIES
(Cost $8,011) 8,007
------
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
MORTGAGE RELATED -- 1.7%
GMAC Commercial Mortgage Securities,
Series 1991-C1 Class A1B
6.175%, 05/15/33 $ 3,000 $ 2,779
--------
TOTAL MORTGAGE RELATED
(Cost $3,045) 2,779
--------
NON-AGENCY MORTGAGE-BACKED SECURITIES -- 6.2%
American Southwest Financial Securities,
Series 1996-FHA1, Class A2
7.000%, 11/25/38 2,442 2,421
Donaldson Lufkin Jenrette Mortgage
Association, Series 1996-CF2,
Class A1B (A)
7.290%, 11/12/21 3,000 3,007
Donaldson Lufkin Jenrette Mortgage
Association, Series 1997-CF1,
Class A1B (A)
7.600%, 04/15/07 2,000 2,027
Lehman Brothers Commercial
Conduit Mortgage Trust,
Series 1998-C1, Class B
6.590%, 02/18/30 3,000 2,896
--------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(Cost $10,531) 10,351
--------
CASH EQUIVALENTS -- 2.3%
SEI Daily Income Trust Money
Market Portfolio 180 180
SEI Daily Income Trust Prime
Obligation Portfolio 3,661 3,661
--------
TOTAL CASH EQUIVALENTS
(Cost $3,841) 3,841
--------
TOTAL INVESTMENTS -- 98.9%
(Cost $167,991) 164,560
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.1% 1,884
--------
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
Intermediate Term Bond Fund (concluded)
- --------------------------------------------------------------------------------
Market
Description Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 16,193,266 outstanding shares
of beneficial interest $170,639
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 135,350 outstanding shares
of beneficial interest 1,377
Accumulated net realized loss on investments (2,141)
Net unrealized depreciation on investments (3,431)
--------
TOTAL NET ASSETS-- 100.0% $166,444
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL CLASS $10.19
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- RETAIL CLASS A $10.22
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.22 divided by 96.5%) $10.59
========
- --------------------------------------------------------------------------------
(A) Private Placement
MTN -- Medium Term Note
YB -- Yankee Bond
- --------------------------------------------------------------------------------
SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
[Pie Chart Omitted]
Cash Equivalents 5.7%
U.S. Government Securities 31.9%
Corporate Securities 62.4%
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 5.8%
U.S. Treasury Notes
6.125%, 12/31/01 $1,000 $1,009
6.250%, 01/31/02 1,000 1,012
------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,059) 2,021
------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 25.6%
Federal Home Loan Bank
5.230%, 11/16/01 1,000 982
5.500%, 01/07/02 1,000 978
5.435%, 01/29/02 1,000 984
6.080%, 07/08/02 2,000 1,999
Federal National Mortgage
Association, MTN
6.310%, 09/14/00 2,000 2,002
5.410%, 02/04/02 1,000 980
5.375%, 03/15/02 1,000 981
------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $9,007) 8,906
------
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 61.6%
BANKS -- 5.8%
First Chicago MTN
6.700%, 03/15/02 $1,000 $1,002
Keycorp MTN
6.750%, 05/29/01 1,000 1,007
------
2,009
------
FINANCE -- 14.5%
Beneficial, Series H, MTN
6.330%, 12/18/00 1,000 1,005
Ford Motor Credit, MTN
6.950%, 05/15/00 1,000 1,010
Goldman Sachs
6.200%, 12/15/00 1,000 1,004
Morgan Stanley Group, MTN
6.375%, 01/18/00 1,000 1,003
Salomon Smith Barney
6.500%, 03/01/00 1,000 1,005
------
5,027
------
FINANCIAL SERVICES -- 11.4%
Bear Stearns
6.750%, 05/01/01 1,000 1,003
General Motors Acceptance
5.500%, 01/14/02 1,000 975
International Lease Finance
5.450%, 01/04/02 1,000 978
Merrill Lynch
6.500%, 04/01/01 1,000 1,001
------
3,957
------
GAS/NATURAL GAS -- 1.1%
Northern Illinois Gas
6.450%, 08/01/01 375 375
------
INDUSTRIAL -- 14.4%
Albertsons
6.375%, 06/01/00 1,000 1,003
Ingersoll Rand, MTN
6.510%, 08/09/99 1,000 1,000
J.C. Penney, MTN
6.375%, 09/15/00 1,000 1,001
- --------------------------------------------------------------------------------
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 1,005
-------
5,013
-------
INSURANCE -- 2.9%
Aetna Services
6.750%, 08/15/01 1,000 1,001
-------
PAPER & PAPER PRODUCTS -- 2.8%
Mead Corporaton
6.600%, 03/01/02 1,000 994
-------
TELEPHONES & TELECOMMUNICATION -- 2.9%
Lucent Technologies
6.900%, 07/15/01 1,000 1,013
-------
UTILITIES -- 5.8%
Detroit Edision, MTN
6.390%, 03/15/00 1,000 1,003
Midwest Power
6.750%, 02/01/00 1,000 1,005
-------
2,008
-------
TOTAL CORPORATE BONDS
(Cost $21,551) 21,397
-------
CASH EQUIVALENTS -- 5.6%
SEI Daily Income Trust Prime
Obligation Portfolio 1,964 1,964
-------
TOTAL CASH EQUIVALENTS
(Cost $1,964) 1,964
-------
TOTAL INVESTMENTS -- 98.6%
(Cost $34,581) 34,288
-------
OTHER ASSETS AND LIABILITIES, NET-- 1.4% 475
-------
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
Short Term Bond Fund (concluded)
- --------------------------------------------------------------------------------
Market
Description Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par value)
based on 3,497,680 outstanding shares
of beneficial interest $37,314
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 16,249 outstanding shares
of beneficial interest 165
Overdistributed net investment income (1)
Accumulated net realized loss on investments (2,422)
Net unrealized depreciation on investments (293)
-------
TOTAL NET ASSETS-- 100.0% $34,763
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL CLASS $9.89
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- RETAIL CLASS A $9.88
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($9.88 divided by 98.5%) $10.03
=======
- --------------------------------------------------------------------------------
MTN -- Medium Term Note
- --------------------------------------------------------------------------------
IDAHO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
[Pie Chart Omitted]
Cash Equivalents 1.9%
Revenue Bonds 47.7%
General Obligations 50.4%
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.9%
IDAHO -- 92.4%
Ada & Canyon Counties, Joint School
District # 2, Meridian GO
5.500%, 07/30/05 (A) @ 101 $ 205 $ 217
5.500%, 07/30/05 (A) @ 101 270 286
5.625%, 07/30/05 (A) @ 101 500 532
5.500%, 07/30/15 1,375 1,421
5.500%, 07/30/16 500 514
Ammon, Urban Renewal Agency
RB, Series B (A) @ 101
6.000%, 08/01/06 125 134
Bannock County, School District #25,
Pocatello GO, FGIC
5.250%, 08/01/15 500 501
Bingham County, School District #055,
Blackfoot GO, MBIA
5.650%, 08/01/15 560 580
Boise City RB
5.100%, 02/01/11 500 500
Boise City, Airport RB, Package Facility
Project, Series A, AMBAC
5.400%, 08/01/11 1,000 1,019
Boise City, Idaho Urban Renewal
Agency Tax Increment Capital City
RB, FSA
5.100%, 09/01/14 365 365
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
IDAHO (continued)
Boise City, Idaho Urban Renewal
Agency Tax Increment Capital City
RB, FSA
5.150%, 09/01/15 $ 385 $ 385
Boise State University Student
Housing System RB,
5.250%, 04/01/17 160 160
Boise State University, Idaho RB, FSA
5.000%, 04/01/23 1,000 951
Boise City, Independent School
District #1 GO, AMBAC
5.400%, 07/30/14 500 506
Boise, Independent School District GO
5.375%, 07/30/10 250 257
5.500%, 07/30/16 1,250 1,264
Bonneville & Bingham Counties,
School District #93 GO, FGIC
5.750%, 07/30/07 500 533
5.500%, 07/30/10 850 875
Bonneville County, Jail Bonds GO, FSA
5.500%, 08/01/16 590 597
Bonneville County, School District
# 91, Idaho Falls GO
5.450%, 08/01/08 500 506
5.500%, 08/01/09 300 303
Canyon County, School District #131,
Nampa GO, MBIA
5.500%, 07/30/12 500 517
Canyon County, School District
# 132 GO, FSA
5.400%, 07/30/11 200 205
5.400%, 07/30/12 400 410
5.450%, 07/30/14 470 480
5.450%, 07/30/15 900 919
Cassia & Twin Falls Counties, Joint
School District #151 GO, FGIC
5.375%, 08/01/14 1,000 1,008
5.375%, 08/01/16 1,000 998
City of Sun Valley GO
5.050%, 08/01/08 195 196
Coeur D'Alene GO, AMBAC
5.350%, 03/01/11 240 242
Elks, Health Facility Authority RB,
Hospital Rehab Project
5.000%, 07/15/08 250 250
5.125%, 07/15/13 500 482
5.450%, 07/15/23 715 683
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
IDAHO (continued)
Elmore County, School District #193,
Mountain Home GO, AMBAC
5.000%, 07/31/10 $ 400 $ 400
Fremont & Madison Counties, School
District #215, St. Anthony GO, FSA
5.600%, 08/01/14 125 130
5.600%, 08/01/15 765 790
Gooding & Lincoln Counties, Joint
School District #231 GO, FSA,
Pre-refunded @ 100
6.250%, 02/01/12 130 140
6.300%, 02/01/15 535 577
Idaho Health Facilities Holy Cross
Health Systems
5.000%, 12/01/18 500 471
Idaho State Building Authority
RB, MBIA
5.600%, 09/01/05 100 105
5.800%, 09/01/05 100 106
Idaho State Building Authority
RB, Series A
5.000%, 09/01/21 1,150 1,082
Idaho State Health Facility Authority
RB, Bannock Regional Medical Draft
5.250%, 05/01/14 250 238
Idaho State Health Facility Authority
RB, Magic Valley Regional Medical
Center, AMBAC
5.625%, 12/01/13 200 206
Idaho State Health Facility Authority
RB, Mercy Medical Center,
Pre-refunded @ 102 (A)
6.200%, 11/15/12 130 140
Idaho State Health Facility Authority
RB, St. Alphonsus Regional Medical
Center, Pre-refunded @ 102 (A)
6.100%, 12/01/07 100 108
Idaho State Health Facility Authority
RB, St. Joseph's Regional Medical
Center, MBIA
5.000%, 07/01/07 500 509
Idaho State Housing & Finance
Association RB, AMT
6.150%, 01/01/28 1,000 1,023
Idaho State Housing & Finance
Association RB, SFM
4.950%, 07/01/11 365 356
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
Idaho Municipal Bond Fund (concluded)
- -------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
IDAHO (continued)
Idaho State Housing and Finance
Association SFM -
Mezz Series I-2 AMT
5.200%, 07/01/20 $ 500 $ 468
Idaho State Health Facilities
Authority Holy Cross Health System
5.250%, 12/01/14 500 501
4.900%, 04/01/17 500 475
Jefferson County, School District
# 253 GO, MBIA
5.500%, 08/01/15 240 244
Jerome, Lincoln & Gooding Counties GO
5.000%, 07/31/12 290 287
Kootenai County, Consolidated Free
Library District GO, FSA
5.000%, 08/01/06 160 165
Kootenai County, Idaho School District
#273 GO, AMBAC
5.000%, 07/30/17 170 161
Latah & Clearwater Counties, School
District # 286 GO, AMBAC
5.500%, 02/01/07 200 204
5.600%, 02/01/08 200 204
Lewis-Clark State College, Refunding
Improvements RB, MBIA
5.200%, 04/01/17 250 246
Madison County GO, FSA
5.400%, 08/01/15 420 422
Madison County, Idaho Memorial
Hospital Board RB
5.000%, 12/01/18 250 231
McCall, Water RB, Parity Lien, FSA
5.750%, 03/01/07 215 229
5.850%, 03/01/16 500 519
Meridian GO, FSA
5.000%, 08/01/15 290 286
Nez Perce County, Pollution Control
RB, Potlatch Corporation Project
6.000%, 10/01/24 1,000 1,020
Oneida County, School District
# 351 GO, MBIA
5.000%, 07/31/15 375 367
Payette County, School District
# 372 GO, AMBAC
6.250%, 07/30/10 365 408
Payette County, School District
# 372 GO, Asset Guaranty,
Pre-refunded @ 100 (A)
6.750%, 07/31/09 100 109
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
IDAHO (continued)
Southern Idaho Regional Solid
Waste Project COP, LOC
5.450%, 11/01/13 $ 500 $ 513
Teton County, School District
# 401 GO, FSA
5.300%, 08/01/07 225 233
5.500%, 08/01/10 400 416
Twin Falls & Cassia Counties, Joint
School District # 418 GO, MBIA
5.450%, 08/01/15 145 146
Twin Falls County, School District
# 413 GO, Class A, AMBAC
5.250%, 07/30/09 200 203
5.250%, 07/30/13 400 401
5.250%, 07/30/14 420 420
Twin Falls County, School District
# 415 GO, Asset Guaranty
5.500%, 08/01/15 195 198
University of Idaho, Refunding &
Improvements RB
5.100%, 04/01/07 200 203
University of Idaho, Student Fee RB
5.350%, 04/01/10 250 252
5.650%, 04/01/22 500 515
University of Idaho, Student Fee
RB, FSA
5.850%, 04/01/11 500 527
University of Idaho RB, MBIA
Student Facility Fee
6.500%, 04/01/15 865 971
-------
36,721
-------
PUERTO RICO -- 6.5%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 250 260
Puerto Rico Commonwealth Highway
and Transportation Authority
Highway RB, FSA
6.250%, 07/01/13 400 446
6.250%, 07/01/14 500 563
6.250%, 07/01/16 735 824
Puerto Rico Municipal Finance
Agency RB, Series A, FSA
5.250%, 07/01/10 500 516
-------
2,609
-------
TOTAL MUNICIPAL BONDS
(Cost $39,219) 39,330
-------
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS -- 1.9%
SEI Tax-Exempt Trust
Tax-Free Portfolio $ 750 $ 750
-------
TOTAL CASH EQUIVALENTS
(Cost $750) 750
-------
TOTAL INVESTMENTS -- 100.8%
(Cost $39,969) 40,080
-------
OTHER ASSETS AND LIABILITIES, NET-- (0.8%) (324)
-------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 2,514,029 outstanding shares
of beneficial interest 25,768
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 1,072,129 outstanding shares
of beneficial interest 11,289
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 222,751 outstanding shares
of beneficial interest 2,404
Undistributed net investment income 1
Accumulated net realized gain on investments 183
Net unrealized appreciation on investments 111
-------
TOTAL NET ASSETS-- 100.0% $39,756
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL CLASS $10.43
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- RETAIL CLASS A $10.45
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.45 divided by 96%) $10.89
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B $10.46
=======
- -------------------------------------------------------------------------------
(A) Prerefunded security. The prerefunded date is shown as the maturity date on
the Statement of Net Assets.
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Corporation
FSA -- Financial Security Assurance
GO -- General Obligation
LOC -- Letter of Credit
MBIA -- Municipal Bond Insurance Association
RB -- Revenue Bond
SFM -- Single Family Mortgage
- --------------------------------------------------------------------------------
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
[Pie Chart Omitted]
Cash Equivalents 0.5%
Other 0.7%
General Obligations 12.3%
Revenue Bonds 86.5%
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 96.8%
ALABAMA -- 0.1%
Alabama State Housing Finance
Authority RB, Series B, AMT, GNMA
6.100%, 10/01/20 $ 110 $ 112
------
ALASKA -- 6.0%
Alaska State Housing Finance RB, MBIA
6.100%, 12/01/37 370 378
Alaska State Housing Finance RB,
Series A, GO
5.700%, 12/01/29 500 500
Alaska State Student Loan RB,
Series A, AMBAC, AMT
5.750%, 07/01/14 400 405
Alaska State Veterans Housing RB,
1st Series, GNMA
5.400%, 12/01/23 390 379
Valdez, Marine Term RB, Mobil
Pipeline Project, Series A
5.850%, 08/01/25 1,000 1,007
Valdez, Marine Term RB, Mobil
Pipeline Project, Series B
5.500%, 10/01/28 1,000 964
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
ALASKA (continued)
Valdez, Marine Term RB, Mobil
Pipeline Project
5.750%, 11/01/28 $1,000 $1,001
------
4,634
------
ARIZONA -- 1.1%
Maricopa County, Elementary School
District # 068 GO, Alhambra, AMBAC
5.100%, 07/01/11 500 503
Maricopa County, Health Facilites
Authority RB, Catholic Healthcare
West Project
5.000%, 07/01/16 400 349
------
852
------
ARKANSAS -- 1.4%
Arkansas State Student Loan Authority
RB, GTSD, AMT
7.250%, 06/01/09 500 554
Independence County, Pollution Control
RB, Power & Light Project, ETM
6.250%, 01/01/21 500 521
------
1,075
------
CALIFORNIA -- 3.5%
California State Tri-City Hospital
District RB, Series A, MBIA
5.625%, 02/15/17 1,010 1,030
Los Angeles, Wastewater System
RB, Series A
5.875%, 06/01/24 160 166
Northern California Power Agency
RB, AMBAC, Pre-refunded @ 100 (A)
7.500%, 07/01/23 720 904
Sacramento, Municipal Utility
RB, Serial E, AMBAC
5.750%, 05/15/22 130 134
San Francisco, Airport Improvement
RB, United Airlines, ETM
8.000%, 07/01/13 290 345
San Francisco, City & County
RB, Series A, GNMA
7.125%, 10/01/16 125 132
------
2,711
------
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
COLORADO -- 3.3%
Colorado State Board of Agriculture
RB, University of Southern Colorado
8.250%, 05/01/03 $ 100 $ 101
Denver, City & County RB, The Boston
Loft Project, Series A, AMT, FHA
5.750%, 10/01/27 500 493
Douglas & Elbert Counties, Douglas
County School District,
No. Re 1, GO, FGIC
5.250%, 12/15/15 1,500 1,487
Summit County, Sports Facilities RB,
Keystone Resorts Project
7.375%, 09/01/10 420 488
------
2,569
------
CONNECTICUT -- 1.0%
Connecticut State, Health & Educational
Facilities Authority RB, Trinity
College, Series E, MBIA
5.875%, 07/01/26 155 160
Connectitcut State, Health & Elder
Facility Revenue New Britain General
Hospital, Series B, Loc: AMBAC
6.000%, 07/01/24 115 121
Waterbury, Housing Authority RB,
Section 8, Project A, GNMA
5.850%, 02/01/37 500 509
------
790
------
FLORIDA -- 1.5%
Boynton Beach, Housing RB, Clipper
Cove Apartments
6.450%, 01/01/27 505 535
Florida State Housing Finance Agency
RB, Glen Oaks Apartment Project,
AMT, FNMA
5.900%, 02/01/30 500 507
Florida State University Housing
Facility RB, MBIA
5.875%, 05/01/14 100 105
------
1,147
------
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
GEORGIA -- 4.5%
Atlanta, Water and Wastewater
RB, Series A, FGIC
5.500%, 11/01/22 $1,000 $1,020
Fulton County Housing Authority,
Multi-Family Housing RB, Concorde
Place Apartments Proj-C, AMT
6.900%, 01/01/28 600 643
Georgia State Housing & Finance
Authority RB, Homeownership
Opportunity Program, Series C, FHA
6.500%, 12/01/11 310 324
Georgia State Housing & Finance
Authority RB, Subseries B2, AMT
5.850%, 12/01/28 995 1,002
Smyra, Hospital Authority RB,
Ridgeview Institute Project
6.000%, 11/01/28 500 485
------
3,474
------
HAWAII -- 0.7%
Hawaii State Housing Finance &
Development RB, Series A,
FNMA, AMT
5.750%, 07/01/30 500 501
------
IDAHO -- 1.3%
Idaho State Health Facilities Authority
RB, Bannock Regional
Medical Center Project
6.125%, 05/01/25 465 477
Nez Perce County, Pollution Control
RB, Potlatch Corporation Project
6.000%, 10/01/24 545 556
------
1,033
------
ILLINOIS -- 8.2%
Bryant, Pollution Control RB, Central
Illinois Light Company
5.900%, 08/01/23 1,000 1,041
Chicago Board of Education, School
Reform Board GO, Series A, FGIC
5.500%, 12/01/26 500 503
Chicago, Housing RB, Bryne Mawr/Belle
Project, AMT, GNMA
6.125%, 06/01/39 500 519
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
ILLINOIS (continued)
Illinois State Housing Development
Authority RB, Section 8, HUD
7.000%, 07/01/17 $ 235 $ 235
Illinois State Toll Highway Priority
RB, Series A, FGIC
6.200%, 01/01/16 1,000 1,075
Illinois State, Sales Tax RB, Series P
6.500%, 06/15/22 1,255 1,407
Jackson and Williamson Counties,
Community High School
GO, AMBAC
6.250%, 12/01/15 500 537
Rockford, Faust Landmark Apartments
RB, Series A, MBIA, AMT
6.750%, 01/01/18 1,000 1,077
------
6,394
------
INDIANA -- 1.5%
Hammod, Multi-School Building
RB, FGIC
6.125%, 07/15/19 720 747
Indiana State Toll Financial
Authority RB
6.000%, 07/01/13 25 25
Indianapolis, Local Public Improvement
Bond Bank RB
6.000%, 01/10/20 290 307
Petersburg, Pollution Control RB,
Indianapolis Power & Light
6.625%, 12/01/24 105 115
------
1,194
------
IOWA -- 2.2%
Iowa City, Sewer RB, MBIA
5.750%, 07/01/21 1,000 1,027
Iowa State Finance Authority
RB, Series F, GNMA
5.700%, 01/01/27 495 494
Iowa State Hospital Facility
RB, Series N, FSA
6.250%, 02/15/22 200 211
------
1,732
------
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
KENTUCKY -- 0.7%
Kentucky State Economic Development
RB, Appalachian Hospital System
5.875%, 10/01/22 $ 500 $ 472
University of Louisville Consolidated
Educational Building RB, Series H
5.875%, 05/01/11 100 104
------
576
------
LOUISIANA -- 1.2%
Louisiana State, Stadium & Expo District
RB, Series B, FGIC
5.000%, 07/01/26 1,000 921
------
MAINE -- 1.3%
Maine State Housing Authority RB,
Series D2, AMT
5.900%, 11/15/25 1,000 1,009
------
MASSACHUSETTS -- 0.3%
Massachusetts State Health &
Educational Facilities Authority
RB, Melrose-Wakefield Hospital,
Series B, ETM, GOH
5.875%, 07/01/18 200 209
------
MISSOURI -- 1.7%
Boone County, Waterworks System RB,
Public Water Supply District No. 07
5.500%, 05/01/29 500 462
Missouri State Health & Education
Facilities RB, SSM Health Care
Projects, Series B, ETM, MBIA
7.000%, 06/01/15 650 679
Springfield, Public Building Leasehold
RB, FSA
5.900%, 11/01/14 200 213
------
1,354
------
NEBRASKA -- 0.2%
Lincoln-Lancaster Counties Public
Building Commission RB, Tax
Supported Lease Rental, GO
6.000%, 10/15/26 150 156
------
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
NEVADA -- 2.0%
Nevada State GO, Project # 32, ETM
7.000%, 08/01/10 $1,000 $1,044
Nevada State Housing Division RB,
Issue C-1, FHA
6.500%, 10/01/16 190 197
Nevada State Housing Division RB,
Saratoga Palms, AMT, E172 FNMA
6.250%, 10/01/16 280 292
------
1,533
------
NEW HAMPSHIRE -- 1.9%
Higher Educational & Health Facilities
Authority, Androscoggin
Valley Hospital RB
5.800%, 11/01/27 1,500 1,500
------
NEW JERSEY -- 0.2%
New Jersey State Health Care Facility
Financing Authority RB,
Raritan Bay Center
7.250%, 07/01/27 140 141
------
NEW MEXICO -- 1.5%
Carlsbad, Housing RB,
Colonial Hillcrest
7.375%, 08/01/27 375 390
Rio Rancho, Water and Waste RB, FSA
6.000%, 05/15/09
Prerefunded 05/15/06 @ 100 315 341
Southeastern New Mexico
Affordable Housing RB, Casa
Hermosa Apartments
7.250%, 12/01/27 430 446
------
1,177
------
NEW YORK -- 7.7%
New York City Industrial Development
Agency RB
11.250%, 05/01/04 400 427
New York State Dorm Authority
RB, FHA
6.000%, 08/01/36 875 913
New York State Dorm Authority RB,
Menorah Campus, FHA
6.100%, 02/01/37 1,000 1,050
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
NEW YORK (continued)
New York State Ideal Senior Living
Center Housing RB. FHA
5.900%, 08/01/26 $ 500 $ 509
New York State Local Government
Assistance RB, Series A. GO
6.000%, 04/01/24 280 293
New York State Medical Care
Facilities RB, MBIA,
Pre-refunded @ 102 (A)
6.500%, 08/15/04 100 111
New York State Metropolitan Transit
Authority RB, Series C1
5.625%, 07/01/27 1,000 996
New York State Unrefunded Balance
GO, Series E
6.000%, 08/01/26 270 279
Newark-Wayne, Community
Hospital RB
7.600%, 09/01/15 500 539
United Nations Development
RB, Series B
5.600%, 07/01/26 500 855
------
5,972
------
NORTH CAROLINA -- 3.0%
North Carolina State Eastern Municipal
Power Agency RB, Catawba
Electric, Series B
6.000%, 01/01/20 500 503
North Carolina State Eastern
Municipal Power Agency
RB, Series A, ETM
4.000%, 01/01/18 375 318
North Carolina State Eastern Municipal
Power Agency RB, Series A,
Pre-refunded @ 100 (A)
6.000%, 01/01/22 1,000 1,091
North Carolina State Medical Care
Commission, Firsthealth of
Carolinas RB
4.750%, 10/01/26 500 430
------
2,342
------
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
NORTH DAKOTA -- 1.1%
Fargo, Housing RB
7.125%, 02/01/26 $ 255 $ 255
North Dakota State Housing Finance
Agency RB, Series C, AMT
5.950%, 07/01/17 265 272
6.100%, 07/01/28 345 350
------
877
------
OHIO -- 5.1%
Butler County, Hospital Facility RB,
Middletown Hospital
5.000%, 11/15/28 500 443
Erie County, Franciscan Service RB,
Providence Hospital
6.000%, 01/01/13 1,000 1,021
Johnstown, Waterworks System RB
6.000%, 12/01/17 250 255
Mason, Tax Increment Fing RB,
J. W. Harris Development Project
5.300%, 12/01/18 600 578
Montgomery County, Hospital RB,
Grandview Hospital & Medical Center
5.250%, 12/01/00 675 681
Montgomery County, Special
Assessment RB, Montgomery
Woods Project
6.000%, 12/01/17 75 79
Oak Hills, Local School District
GO, Series A
5.700%, 12/01/25 500 510
Perrysburg, School District GO,
Exempt Village School District
5.350%, 12/01/25 400 394
------
3,961
------
OREGON -- 0.6%
Oregon State, Economic Development
RB, Georgia Pacific Corporation
Project Series 183, AMT
5.700%, 12/01/25 500 479
------
PENNSYLVANIA -- 7.3%
Allegheny County, Hospital
Development Authority RB,
St. Francis Medical Center
5.750%, 05/15/17 500 475
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
PENNSYLVANIA (continued)
Allentown, Hospital Authority RB,
Sacred Heart Hospital of
Allentown, Series A
6.750%, 11/15/14 $ 500 $ 534
Dauphin County, General Authority
Office RB, Forum Pl, Series A
6.000%, 01/15/25 500 488
Delaware County, Hospital Authority
RB, Crozer-Chester Medical Center
6.000%, 12/15/20 500 502
Pennsylvania State GO
9.000%, 10/01/00 100 101
Pennsylvania State Housing Finance
Agency RB, Series 39B, AMT
6.875%, 10/01/24 750 784
Pennsylvania State Housing Finance
Agency RB, Series 59A, AMT
5.800%, 10/01/29 1,250 1,256
Scranton-Lackawanna, Health &
Welfare Authority RB, Moses
Taylor Hospital Project
6.250%, 07/01/20 500 493
Warren County, Hospital Authority
RB, Series A
6.900%, 04/01/11 500 532
Washington County, Canonsburg
General Hospital Authority RB
7.350%, 06/01/13 500 512
------
5,677
------
PUERTO RICO -- 1.3%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 1,000 1,040
------
RHODE ISLAND -- 2.0%
Rhode Island Depositors Economic
Protection Corporation, Special
Obligation RB, Series A, ETM
6.375%, 08/01/22 325 368
Rhode Island State Housing & Mortgage
Finance RB, Series 23, AMT
5.950%, 04/01/29 1,000 1,008
Rhode Island State, Convention Center
Authority RB, Series A, AMBAC
5.750%, 05/15/20 150 156
------
1,532
------
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
SOUTH CAROLINA -- 1.4%
South Carolina State Connector
2000 Association RB,
Toll Road Project, (B)
0.000%, 01/01/31 $ 500 $ 70
University of South Carolina
RB, MBIA
5.750%, 06/01/26 1,000 1,031
------
1,101
------
SOUTH DAKOTA -- 0.7%
South Dakota State Health &
Education Facilities RB, Huron
Regional Medical Center
7.250%, 04/01/20 500 536
------
TENNESSEE -- 0.6%
Nashville & Davidson Counties,
Health & Education Facility RB,
Open Arms Development Center,
ASSETG
5.000%, 08/01/12 500 489
------
TEXAS -- 3.6%
Beaumont, Multi-Family Housing RB,
Park Shadows Project, FHA
6.450%, 06/15/22 500 513
Carroll, Independent School District
GO, PSF - GTD
6.750%, 08/15/20 325 380
Denison, Hospital Authority RB,
Texoma Medical Center Project
6.125%, 08/15/17 700 687
Frisco, Independent School District
GO, PSFG
5.400%, 08/15/23 270 264
Harris County, Industrial Development
RB, Gatx Terminals Project
6.950%, 02/01/22 500 530
Socorro, Independent School
District GO
5.750%, 02/15/21 200 213
Texarkana, Health Facilities RB,
Wadley Regional Medical Center,
Series B, MBIA
6.000%, 10/01/17 160 171
------
2,758
------
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
UTAH -- 3.2%
Provo City, Housing Authority RB,
Lookout Pointe Apartments, GNMA
5.800%, 07/20/22 $ 500 $ 502
Salt Lake City, Water RB, FGIC
4.100%, 08/01/04 275 241
Salt Lake County, Westminster College
Project RB
5.750%, 10/01/27 250 241
Utah State Housing Finance
Agency RB, FHA
6.800%, 01/01/12 135 141
Weber County, Municipal Building
Authority RB, MBIA
5.750%, 12/15/19 1,000 1,028
White City, Water Improvement
RB, AMBAC
5.900%, 02/01/22 300 313
------
2,466
------
VERMONT -- 1.7%
Vermont State Housing Finance
Agency RB, Series 9, AMT, MBIA
6.000%, 05/01/37 365 370
Vermont State Student Assistance
Financing RB, Series B, AMT, FSA
6.700%, 12/15/12 900 962
------
1,332
------
VIRGINIA -- 1.3%
Chesapeake Bay Bridge and Tunnel
Commission, District RB
5.500%, 07/01/25 1,000 1,019
------
WASHINGTON -- 3.8%
King County, GO, MBIA
6.125%, 01/01/33 110 117
Seattle, Low Income Housing
Assistance Authority RB, Kin On
Project, Series A, GNMA
7.400%, 11/20/36 1,000 1,131
Snohomish County, Public Utility RB,
District # 001, FGIC
6.000%, 01/01/18 220 229
Stevens County, Water Power RB,
Kettle Project
6.000%, 12/01/23 110 113
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
WASHINGTON (continued)
Washington State Development RB,
Tramco Project, AMT
6.000%, 08/01/23 $ 820 $ 828
Washington State, GO,
Series B & At-7
6.400%, 06/01/17 250 278
Washington State, Housing Finance
RB, Seattle University Auxiliary
Services Project, BANKAM
5.300%, 07/01/31 250 236
-------
2,932
-------
WEST VIRGINIA -- 0.2%
West Virginia State, Hospital Financing
Authority RB, Fairmont
General Hospital, GOH
6.750%, 03/01/14 140 148
-------
WISCONSIN -- 2.3%
Wisconsin State GO, Series D, AMT
5.800%, 05/01/20 145 151
Wisconsin State Health & Education
Facilities RB, Franciscan
Skemp Medical Center
6.125%, 11/15/15 1,000 1,050
Wisconsin State Housing & Economic
Development RB, Series A, GO
6.000%, 09/01/15 550 560
-------
1,761
-------
WYOMING -- 2.6%
Jackson, National Rural Utilities RB,
Gas Supply, Series B, AMT
5.875%, 05/01/26 500 514
Wyoming State Community Development
Authority RB, Series 4, AMT
5.850%, 06/01/28 450 454
Wyoming State Community Development
Authority RB, Series A, FHA
6.000%, 06/01/23 1,000 1,016
-------
1,984
-------
TOTAL MUNICIPAL BONDS
(Cost $76,129) 75,200
-------
(CONTINUED)
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
JULY 31, 1999 (UNAUDITED)
Statement of Net Assets
Municipal Bond Fund (concluded)
- --------------------------------------------------------------------------------
Shares/Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
MUTUAL FUNDS -- 1.9%
Greenwich Street Municipal Fund 40,000 $ 425
Managed Municipals Portfolio Fund 55,000 553
Morgan Stanley Dean Witter
Municipal Income II 25,000 208
Morgan Stanley Dean Witter
Municipal Premium Income 40,000 335
-------
TOTAL MUTUAL FUNDS
(Cost $1,620) 1,521
-------
CASH EQUIVALENTS -- 0.6%
SEI Institutional Tax-Free Portfolio $ 451 451
-------
TOTAL CASH EQUIVALENTS
(Cost $451) 451
-------
TOTAL INVESTMENTS -- 99.3%
(Cost $78,200) 77,172
-------
OTHER ASSETS AND LIABILITIES, NET -- 0.7% 541
-------
- --------------------------------------------------------------------------------
Market
Description Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization-- no par value)
based on 6,793,586 outstanding shares
of beneficial interest $68,254
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 786,867 outstanding shares
of beneficial interest 7,801
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 254,660 outstanding shares
of beneficial interest 2,630
Undistributed net investment income 3
Accumulated net realized gain on investments 53
Net unrealized depreciation on investments (1,028)
-------
TOTAL NET ASSETS -- 100.0% $77,713
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $9.92
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS A $9.91
=======
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($9.91 divided by 96%) $10.32
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B $9.92
=======
- --------------------------------------------------------------------------------
(A) Prerefunded Security. The prerefunded date is shown as the maturity date on
the Statement of Net Assets.
AMBAC -- American Municipal Bond Assurance Corporation
AMT-- Alternative Minimum Tax
ASSETG -- Asset Guaranty
BANKAM -- Bank of America
ETM -- Escrowed To Maturity
FGIC -- Financial Guaranty Insurance Company
FHA -- Federal Housing Authority
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GO -- General Obligation
GOH -- General Obligation of Hospital
HUD -- Urban Housing Development
MBIA -- Municipal Bond Investors Assurance
Proj -- Project
PSFG -- Permanent School Fund Guaranteed
RB -- Revenue Bond
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
<TABLE>
<CAPTION>
FOR THE SIX MONTH PERIOD ENDED JULY 31, 1999 THE ACHIEVEMENT FUNDS
Statements of Operations (000)
(UNAUDITED)
- -------------------------------------------------------------------------------------------------------------------------------
SHORT IDAHO
INTERMEDIATE TERM MUNICIPAL MUNICIPAL
EQUITY BALANCED TERM BOND BOND BOND BOND
FUND FUND FUND FUND FUND FUND
======== ======== ======== ======== ======== ========
<S> <C> <C> <C> <C> <C> <C>
INCOME:
Dividend Income $ 1,169 $ 688 $ -- $ -- $ -- $ --
Interest Income 104 2,343 5,336 1,127 1,033 2,157
-------- -------- -------- -------- -------- --------
Total Income 1,273 3,031 5,336 1,127 1,033 2,157
-------- -------- -------- -------- -------- --------
EXPENSES:
Administrative Fees 283 219 166 37 50 77
Less: Waiver of Administrative Fees -- -- -- -- (10) --
Investment Advisory Fees 1,049 811 498 110 121 232
Less: Waiver of Investment
Advisory Fees (191) (167) (147) (56) (46) (69)
Custodian/Transfer Agent Fees 29 26 28 24 24 25
Professional Fees 24 27 18 3 4 7
Pricing Fees 6 5 4 1 1 2
Registration & Filing Fees 40 37 29 9 2 7
Printing Fees 20 15 15 3 3 5
Trustee Fees 9 7 7 2 1 3
Distribution Fees - Retail A 15 5 2 -- 14 9
Distribution Fees - Retail B 12 8 -- -- 9 11
Amortization of Deferred
Organizational Costs 5 6 3 4 1 1
Other 2 1 1 1 1 1
-------- -------- -------- -------- -------- --------
Total Expenses 1,303 1,000 624 138 175 311
-------- -------- -------- -------- -------- --------
Net Income (Loss) (30) 2,031 4,712 989 858 1,846
-------- -------- -------- -------- -------- --------
Net Realized Gain (Loss) on
Investments 13,548 9,603 (216) (57) 155 (73)
Net Change in Unrealized
(Depreciation) of Investments (11,824) (9,859) (8,967) (394) (1,976) (2,840)
-------- -------- -------- -------- -------- --------
Net Realized and Unrealized Gain
(Loss) on Investments 1,724 (256) (9,183) (451) (1,821) (2,913)
-------- -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets
Resulting from Operations $ 1,694 $ 1,775 $ (4,471) $ 538 $ (963) $ (1,067)
======== ======== ======== ======== ======== ========
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets (000) THE ACHIEVEMENT FUNDS
FOR THE SIX MONTH PERIOD ENDED JULY 31, 1999 (UNAUDITED) AND THE YEAR ENDED
JANUARY 31, 1999.
- -----------------------------------------------------------------------------------------------------------------------------
EQUITY BALANCED INTERMEDIATE
FUND FUND TERM BOND FUND
--------------------- --------------------- ---------------------
2/1/99 2/1/98 2/1/99 2/1/98 2/1/99 2/1/98
TO TO TO TO TO TO
7/31/99 1/31/99 7/31/99 1/31/99 7/31/99 1/31/99
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) $ (30) $ 804 $ 2,031 $ 3,991 $ 4,712 $ 9,497
Net Realized Gain (Loss) on Investments 13,548 7,176 9,603 4,336 (216) 631
Net Change in Unrealized
Appreciation (Depreciation) of Investments (11,824) 47,621 (9,859) 22,563 (8,967) 1,632
--------- --------- --------- --------- --------- ---------
Increase in Net Assets
Resulting From Operations 1,694 55,601 1,775 30,890 (4,471) 11,760
--------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class -- (898) (1,887) (3,959) (4,671) (9,367)
Retail Class A -- (20) (33) (81) (41) (129)
Retail Class B (1) -- (1) (6) (7) -- --
Capital Gains:
Institutional Class -- (10,727) -- (11,946) -- --
Retail Class A -- (476) -- (260) -- --
Retail Class B (1) -- (80) -- (73) -- --
--------- --------- --------- --------- --------- ---------
Total Distributions -- (12,202) (1,926) (16,326) (4,712) (9,496)
--------- --------- --------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 19,106 67,365 4,865 26,031 20,886 41,264
Reinvestment of Cash Distributions -- 3,277 1,881 15,867 685 1,585
Cost of Shares Redeemed (22,293) (37,215) (10,635) (16,968) (15,959) (38,279)
--------- --------- --------- --------- --------- ---------
Total Institutional Class Transactions (3,187) 33,427 (3,889) 24,930 5,612 4,570
--------- --------- --------- --------- --------- ---------
Retail Class A:
Proceeds from Shares Issued 1,128 3,075 446 910 10 903
Reinvestment of Cash Distributions -- 491 33 335 41 126
Cost of Shares Redeemed (1,160) (2,990) (707) (1,022) (324) (2,093)
--------- --------- --------- --------- --------- ---------
Total Retail Class A Transactions (32) 576 (228) 223 (273) (1,064)
--------- --------- --------- --------- --------- ---------
Retail Class B (1):
Proceeds from Shares Issued 789 1,985 590 1,364 -- --
Reinvestment of Cash Distributions -- 79 6 80 -- --
Cost of Shares Redeemed (412) (76) (274) (22) -- --
--------- --------- --------- --------- --------- ---------
Total Retail Class B Transactions 377 1,988 322 1,422 -- --
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net
Assets from Share Transactions (2,842) 35,991 (3,795) 26,575 5,339 3,506
--------- --------- --------- --------- --------- ---------
Total Increase (Decrease) in Net Assets (1,148) 79,390 (3,946) 41,139 (3,844) 5,770
NET ASSETS:
Beginning of Period 284,646 205,256 220,759 179,620 170,288 164,518
--------- --------- --------- --------- --------- ---------
End of Period $ 283,498 $ 284,646 $ 216,813 $ 220,759 $ 166,444 $ 170,288
========= ========= ========= ========= ========= =========
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 1,041 4,301 346 1,965 2,000 3,873
Shares Issued in Lieu of Cash Distributions -- 228 134 1,238 66 149
Shares Redeemed (1,212) (2,275) (756) (1,257) (1,528) (3,589)
--------- --------- --------- --------- --------- ---------
Total Institutional Class Share Transactions (171) 2,254 (276) 1,946 538 433
--------- --------- --------- --------- --------- ---------
Retail Class A
Shares Issued 61 191 32 67 1 85
Shares Issued in Lieu of Cash Distributions -- 34 2 26 4 12
Shares Redeemed (62) (191) (50) (79) (32) (196)
--------- --------- --------- --------- --------- ---------
Total Retail Class A Share Transactions (1) 34 (16) 14 (27) (99)
--------- --------- --------- --------- --------- ---------
Retail Class B (1)
Shares Issued 43 121 42 102 -- --
Shares Issued in Lieu of Cash Distributions -- 6 1 6 -- --
Shares Redeemed (22) (5) (20) (2) -- --
--------- --------- --------- --------- --------- ---------
Total Retail Class B Share Transactions 21 122 23 106 -- --
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Share Transactions (151) 2,410 (269) 2,066 511 334
========= ========= ========= ========= ========= =========
<CAPTION>
SHORT TERM IDAHO MUNICIPAL
BOND FUND MUNICIPAL BOND BOND FUND
- ------------------------- ------------------------- -------------------------
2/1/99 2/1/98 2/1/99 2/1/98 2/1/99 2/1/98
TO TO TO TO TO TO
7/31/99 1/31/99 7/31/99 1/31/99 7/31/99 1/31/99
- --------- --------- --------- --------- --------- ---------
<C> <C> <C> <C> <C> <C>
$ 989 $ 2,523 $ 858 $ 1,581 $ 1,846 $ 3,423
(57) (37) 155 175 (73) 1,093
(394) (113) (1,976) 304 (2,840) (428)
- --------- --------- --------- --------- --------- ---------
538 2,373 (963) 2,060 (1,067) 4,088
- --------- --------- --------- --------- --------- ---------
(986) (2,515) (587) (1,139) (1,638) (2,984)
(4) (8) (237) (420) (172) (389)
-- -- (34) (21) (46) (37)
-- -- -- (115) -- (1,076)
-- -- -- (126) --
-- -- -- (5) -- (34)
- --------- --------- --------- --------- --------- ---------
(990) (2,523) (858) (1,752) (1,856) (4,646)
- --------- --------- --------- --------- --------- ---------
3,767 10,145 2,731 9,011 7,503 16,704
573 1,135 14 22 37 31
(7,238) (24,033) (2,275) (8,364) (5,851) (11,037)
- --------- --------- --------- --------- --------- ---------
(2,898) (12,753) 470 669 1,689 5,698
- --------- --------- --------- --------- --------- ---------
12 42 264 3,022 1,661 851
4 7 237 465 172 514
(2) (104) (469) (1,167) (968) (4,024)
- --------- --------- --------- --------- --------- ---------
14 (55) 32 2,320 865 (2,659)
- --------- --------- --------- --------- --------- ---------
-- -- 1,137 1,419 448 2,195
-- -- 23 15 40 68
-- -- (87) (103) (106) (15)
- --------- --------- --------- --------- --------- ---------
-- -- 1,073 1,331 382 2,248
- --------- --------- --------- --------- --------- ---------
(2,884) (12,808) 1,575 4,320 2,936 5,287
- --------- --------- --------- --------- --------- ---------
(3,336) (12,958) (246) 4,628 13 4,729
38,099 51,057 40,002 35,374 77,700 72,971
- --------- --------- --------- --------- --------- ---------
$ 34,763 $ 38,099 $ 39,756 $ 40,002 $ 77,713 $ 77,700
========= ========= ========= ========= ========= =========
378 1,012 255 835 741 1,620
58 113 1 2 4 3
(727) (2,397) (214) (777) (577) (1,066)
- --------- --------- --------- --------- --------- ---------
(291) (1,272) 42 60 168 557
- --------- --------- --------- --------- --------- ---------
1 4 24 279 164 82
-- 1 22 43 17 50
-- (10) (44) (108) (96) (388)
- --------- --------- --------- --------- --------- ---------
1 (5) 2 214 85 (256)
- --------- --------- --------- --------- --------- ---------
-- -- 106 131 44 212
-- -- 2 1 4 7
-- -- (8) (9) (10) (2)
- --------- --------- --------- --------- --------- ---------
-- -- 100 123 38 217
- --------- --------- --------- --------- --------- ---------
(290) (1,277) 144 397 291 518
========= ========= ========= ========= ========= =========
</TABLE>
(1) Commenced operations on May 8, 1998
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
32 & 33
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
(UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period or Year
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)
--------- ------ ------ ------ --------------- --------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EQUITY FUND
- ----------
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1999 $18.03 -- -- -- 0.10 $18.13 0.55% $268,824
For the years ended
January 31, 1999 $15.34 0.06 (0.07) (0.72) 3.42 $18.03 24.06% $270,397
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, 1999 $18.01 (0.02) -- -- 0.10 $18.09 0.44% $ 12,105
For the year ended
January 31, 1999 $15.34 0.02 (0.03) (0.72) 3.40 $18.01 23.64% $ 12,064
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 six months ended
July 31, 1999 $17.93 (0.07) -- -- 0.06 $17.92 (0.06)% $ 2,569
For the period ended
January 31, 1999(3)** $17.26 (0.07) (0.01) (0.72) 1.47 $17.93 10.97%* $ 2,185
BALANCED FUND
- -------------
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1999 $13.99 0.13 (0.13) -- (0.01) $13.98 0.81% $210,902
For the years ended
January 31, 1999 $13.10 0.29 (0.29) (0.86) 1.75 $13.99 16.75% $214,939
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, 1999 $13.97 0.11 (0.11) -- (0.01) $13.96 0.70% $ 4,112
For the years ended
January 31, 1999 $13.08 0.25 (0.26) (0.86) 1.76 $13.97 16.50% $ 4,339
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 six months ended
July 31, 1999 $13.95 0.06 (0.06) -- (0.01) $13.94 0.34% $ 1,799
For the period ended
January 31, 1999(3)** $14.09 0.11 (0.12) (0.87) 0.74 $13.95 7.99%* $ 1,481
<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
- ----------- ----------- ---------- ---------- --------
<C> <C> <C> <C> <C>
0.90% 1.03% 0.00% (0.13)% 19.86%
0.90% 1.06% 0.36% 0.20% 74.99%
0.90% 1.00% 0.63% 0.53% 36.68%
0.90% 1.07% 0.81% 0.64% 97.14%
0.90% 1.14% 1.43% 1.19% 103.85%
0.90% 1.26% 1.22% 0.86% 6.03%
1.15% 1.28% (0.25)% (0.38)% 19.86%
1.15% 1.31% 0.12% (0.04)% 74.99%
1.15% 1.28% 0.33% 0.20% 36.68%
1.15% 1.31% 0.52% 0.36% 97.14%
1.15% 1.37% 0.99% 0.77% 103.85%
1.90% 2.03% (1.00)% (1.13)% 19.86%
1.90% 2.10% (0.85)% (1.05)% 74.99%
0.90% 1.05% 1.87% 1.72% 17.06%
0.90% 1.05% 2.14% 1.99% 54.88%
0.90% 1.02% 2.49% 2.37% 30.91%
0.90% 1.07% 2.90% 2.73% 68.11%
0.90% 1.14% 3.48% 3.24% 59.74%
0.90% 1.26% 3.61% 3.25% 1.70%
1.15% 1.30% 1.62% 1.47% 17.06%
1.15% 1.30% 1.90% 1.75% 54.88%
1.15% 1.27% 2.23% 2.11% 30.91%
1.15% 1.32% 2.64% 2.47% 68.11%
1.15% 1.38% 3.06% 2.83% 59.74%
1.90% 2.05% 0.87% 0.72% 17.06%
1.90% 2.07% 1.00% 0.83% 54.88%
</TABLE>
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
<TABLE>
<CAPTION>
THE ACHIEVEMENT FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
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)
--------- ------ ------ ------ --------------- --------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INTERMEDIATE TERM
BOND FUND
- ------------
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1999 $10.77 0.29 (0.29) -- (0.58) $10.19 (2.68)% $165,061
For the years ended
January 31, 1999 $10.63 0.61 (0.61) -- 0.14 $10.77 7.25% $168,545
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, 1999 $10.79 0.28 (0.28) -- (0.57) $10.22 (2.70)% $ 1,383
For the years ended
January 31, 1999 $10.66 0.58 (0.59) -- 0.14 $10.79 6.91% $ 1,743
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, 1999 $10.02 0.27 (0.27) -- (0.13) $ 9.89 1.39% $ 34,602
For the years ended
January 31, 1999 $10.05 0.55 (0.55) -- (0.03) $10.02 5.33% $ 37,951
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, 1999 $10.00 0.25 (0.25) -- (0.12) $ 9.88 1.36% $ 161
For the years ended
January 31, 1999 $10.04 0.52 (0.52) -- (0.04) $10.00 4.94% $ 148
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
<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
- ----------- ----------- ---------- ---------- --------
<C> <C> <C> <C> <C>
0.75% 0.93% 5.68% 5.50% 13.87%
0.75% 0.91% 5.72% 5.55% 28.03%
0.75% 0.87% 5.99% 5.87% 20.91%
0.75% 0.95% 6.02% 5.82% 21.23%
0.75% 1.02% 6.14% 5.87% 85.16%
0.75% 1.13% 5.60% 5.22% 10.57%
1.00% 1.18% 5.43% 5.25% 13.87%
1.00% 1.15% 5.48% 5.34% 28.03%
1.00% 1.11% 5.75% 5.64% 20.91%
1.00% 1.18% 5.76% 5.58% 21.23%
1.00% 1.26% 5.74% 5.48% 85.16%
0.75% 1.05% 5.41% 5.11% 55.72%
0.75% 1.01% 5.50% 5.24% 26.51%
0.75% 0.95% 5.68% 5.48% 48.90%
0.75% 0.96% 6.00% 5.79% 40.80%
0.75% 0.99% 6.11% 5.87% 83.64%
0.75% 1.13% 4.21% 3.83% 11.95%
1.00% 1.30% 5.16% 4.86% 55.72%
1.00% 1.25% 5.25% 5.00% 26.51%
1.00% 1.18% 5.43% 5.25% 48.90%
1.00% 1.20% 5.74% 5.54% 40.80%
1.00% 1.23% 5.75% 5.52% 83.64%
</TABLE>
* 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 8, 1998.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
(UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period or Year
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)
--------- ------ ------ ------ --------------- --------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
IDAHO MUNICIPAL
BOND FUND
- ----------
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1999 $10.91 0.23 (0.23) -- (0.48) $10.43 (2.30)% $26,217
For the years ended
January 31, 1999 $10.82 0.47 (0.47) (0.05) 0.14 $10.91 5.76% $26,961
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, 1999 $10.93 0.22 (0.22) -- (0.48) $10.45 (2.41)% $11,208
For the years ended
January 31, 1999 $10.85 0.45 (0.45) (0.05) 0.13 $10.93 5.43% $11,695
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 six months ended
July 31, 1999 $10.94 0.18 (0.18) -- (0.48) $10.46 (2.75)% $ 2,331
For the period ended
January 31, 1999(3)** $10.69 0.27 (0.27) (0.05) 0.30 $10.94 5.37%* $ 1,346
<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
- ----------- ----------- ---------- ---------- --------
<C> <C> <C> <C> <C>
0.75% 0.98% 4.39% 4.16% 7.19%
0.75% 1.00% 4.35% 4.10% 12.90%
0.75% 1.10% 4.47% 4.12% 17.64%
0.75% 1.24% 4.40% 3.91% 29.13%
0.75% 1.35% 4.52% 3.92% 58.94%
0.75% 1.38% 4.21% 3.58% 5.66%
1.00% 1.23% 4.14% 3.91% 7.19%
1.00% 1.25% 4.10% 3.85% 12.90%
1.00% 1.37% 4.22% 3.85% 17.64%
1.00% 1.47% 4.15% 3.68% 29.13%
1.00% 1.58% 4.18% 3.60% 58.94%
1.75% 1.98% 3.45% 3.26% 7.19%
1.75% 2.05% 3.32% 3.02% 12.90%
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
<TABLE>
<CAPTION>
THE ACHIEVEMENT FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
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)
--------- ------ ------ ------ --------------- --------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MUNICIPAL
BOND FUND
- ----------
INSTITUTIONAL CLASS:
For the six months ended
July 31, 1999 $10.30 0.24 (0.24) -- (0.38) $ 9.92 (1.34)% $67,386
For the years ended
January 31, 1999 $10.38 0.49 (0.49) (0.18) 0.10 $10.30 5.88% $68,239
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, 1999 $10.29 0.23 (0.23) -- (0.38) $ 9.91 (1.46)% $ 7,801
For the years ended
January 31, 1999 $10.38 0.47 (0.47) (0.18) 0.09 $10.29 5.48% $ 7,226
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 six months ended
July 31, 1999 $10.30 0.20 (0.20) -- (0.38) $ 9.92 (1.81)% $ 2,526
For the period ended
January 31, 1999(3)** $10.27 0.30 (0.30) (0.18) 0.21 $10.30 4.87%* $ 2,235
<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
- ----------- ----------- ---------- ---------- --------
<C> <C> <C> <C> <C>
0.75% 0.93% 4.83% 4.65% 9.66%
0.75% 0.95% 4.79% 4.59% 46.00%
0.75% 1.05% 4.72% 4.42% 93.18%
0.75% 1.07% 4.58% 4.26% 19.21%
1.00% 1.18% 4.58% 4.40% 9.66%
1.00% 1.19% 4.53% 4.34% 46.00%
1.00% 1.32% 4.48% 4.16% 93.18%
1.00% 1.29% 4.35% 4.06% 19.21%
1.75% 1.89% 3.88% 3.74% 9.66%
1.75% 1.98% 3.84% 3.61% 46.00%
</TABLE>
* 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 8, 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.
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
JULY 31, 1999 (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 six 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 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 traded. 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 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.
38
<PAGE>
THE ACHIEVEMENT FUNDS
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 January 31, 1999, $117,726 and
$1,441 have been reclassified in the Equity Fund and Balanced Fund respectively
between undistributed net investment income and 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)
39
<PAGE>
JULY 31, 1999 (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 each of the Stock
Funds and 0.60% of the average daily net assets each of the Bond Funds. Such fee
is computed daily and paid monthly. During the period ended July 31, 1999, 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 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, 1999 for the Idaho Municipal Bond Fund in order to
limit operating expenses.
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust.
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
40
<PAGE>
THE ACHIEVEMENT FUNDS
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 distribution fee payable under the Class
B Plan at any time.
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
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,
1999, are presented on the next page for the Funds. On July 31, 1999 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, 1999 for each Fund is as follows on the next page:
(CONTINUED)
41
<PAGE>
JULY 31, 1999 (UNAUDITED)
Notes to Financial Statements (continued)
FUND INVESTMENT TRANSACTIONS (000)
<TABLE>
<CAPTION>
IDAHO
INTERMEDIATE SHORT MUNICIPAL MUNICIPAL
EQUITY BALANCED TERM BOND TERM BOND BOND BOND
FUND FUND FUND FUND FUND FUND
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Purchases
U.S. Government
Securities $ -- $ 12,882 $ 23,455 $ 6,084 $ -- $ --
Other 55,526 23,277 3,045 8,066 4,269 12,820
Sales
U.S. Government
Securities -- 4,535 16,341 5,006 -- --
Other 62,350 31,204 5,506 $ 15,455 2,853 7,339
Aggregate gross
unrealized gain 95,175 50,196 585 12 679 408
Aggregate gross
unrealized loss (5,082) (2,986) (4,016) (305) (568) (1,436)
-------- -------- -------- -------- -------- --------
Net unrealized
gain (loss) $ 90,093 $ 47,210 $ (3,431) $ (293) $ 111 $ (1,028)
======== ======== ======== ======== ======== ========
</TABLE>
At January 31, 1999, the Intermediate Term Bond Fund and the Short Term
Bond Fund had capital loss carryforwards for federal tax purposes. The losses in
the Funds can be carried forward for a maximum of eight years to offset any net
realized capital gains. Such capital loss carryforwards will expire as listed
below:
INTERMEDIATE SHORT
TERM BOND TERM BOND
FUND FUND
------------ ----------
Carryforwards to Expire in 2004 $937,377 $2,034,615
Carryforwards to Expire in 2005 519,195 8,234
Carryforwards to Expire in 2006 468,346 226,204
Carryforwards to Expire in 2007 -- 95,977
The Balanced Fund incurred losses in the amount of $4,259,940 from November
1, 1998 to January 31, 1999. As permitted by tax regulations, the Fund intends
to elect to defer and treat these losses as arising in the fiscal year ending
January 31, 2000.
42
<PAGE>
THE ACHIEVEMENT FUNDS
6. CONCENTRATION OF CREDIT RISK
- --------------------------------------------------------------------------------
The Idaho Municipal Bond Fund and the Municipal Bond fund invest in debt
instruments of municipal issuers. The issuers' 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 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,
1999, the percentage of total value of investments by each revenue source was as
follows:
IDAHO
MUNICIPAL MUNICIPAL
BOND FUND BOND FUND
--------- ---------
Cash Equivalents 2% 3%
Education Bonds 12% 6%
General Obligation 53% 9%
Hospital Bonds 10% 21%
Housing Bonds 5% 26%
Public Facility Bonds 3% 3%
Other Revenue Bonds 6% 15%
Transportation Bonds 7% 5%
Utility Bonds 2% 12%
--- ---
100% 100%
=== ===
Many municipalities insure their obligations with insurance underwritten by
insurance companies that undertake to pay a holder, when due, the interest and
principal amount on an obligation if the issuer defaults on its obligation.
Although bond insurance reduces the risk of loss due to default by the issuer,
there is no assurance that the insurance company will meet its obligations.
Also, some of the securities have credit enhancements (letters of credit or
guarantees issued by third party domestic or foreign banks or other
institutions). At July 31, 1999, 72% and 45% of the total value of the Idaho
Municipal Bond Fund and the Municipal Bond fund, respectively, were insured or
had credit enhancements.
(CONTINUED)
43
<PAGE>
JULY 31, 1999 (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, 1999 are as follows:
IDAHO
MUNICIPAL MUNICIPAL
INTERMEDIATE TERM SHORT TERM BOND BOND
BOND FUND BOND FUND FUND FUND
----------------- ---------- --------- ---------
AAA 63% 31% 70% 39%
AA+ -- -- -- 10%
AA 3% 1% 8% 11%
AA- 5% 3% 8% 4%
A+ 4% 18% 1% 1%
A 12% 23% 3% 5%
A- 8% 15% 1% 10%
BBB+ 2% 3% 3% 4%
BBB 2% -- 4% 6%
BBB- -- -- -- 2%
Not rated 1% 6% 2% 8%
--- --- --- ---
100% 100% 100% 100%
=== === === ===
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, 1999, none of the Funds had loans outstanding.
8. SUBSEQUENT EVENT
As of February 5, 1999, investors are no longer able to purchase
Institutional or Retail Class shares of the Short Term Municipal Bond Fund.
44
<PAGE>
NOTES
45
<PAGE>
NOTES
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, LLP
Philadelphia, PA 19103
INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
Princeton, NJ 08540
CUSTODIAN
First Union National Bank
Philadelphia, PA 19101
<PAGE>
[Logo Omitted]
Shares of any of The Achievement Funds are:
o not obligations or deposits of, or guaranteed by First Security
Corporation or any of its banks or non-bank subsidiaries;
o not federally insured by the FDIC, the Federal Reserve Board or any
other government agency;
o 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
or visit us at
www.achievementfunds.com
ACH-016-05
[LOGO]
Semi-Annual
Report to Shareholders
- ----------------------
July 31, 1999
