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THE
ACHIEVEMENT
FUNDS [REGISTER MARK OMITTED]
FOR YOUR LIFE'S JOURNEY [REGISTER MARK OMITTED]
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SEMI-ANNUAL
REPORT TO SHAREHOLDERS
JULY 31, 2000
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders ......................... 2
Fund Objectives ................................ 3
Investment Adviser's Report .................... 4
Financial Statements ........................... 10
Notes to Financial Statements .................. 40
------------------------------
THE ACHIEVEMENT FUNDS
SEMI-ANNUAL REPORT (UNAUDITED)
JULY 31, 2000
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
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THE
ACHIEVEMENT
FUNDS [REGISTER MARK OMITTED]
FOR YOUR LIFE'S JOURNEY [REGISTER MARK OMITTED]
<PAGE>
LETTER TO SHAREHOLDERS
As we reach the mid-point in our fiscal year, we are pleased to report to you,
our shareholders, a solid report card relative to the performance of the
Achievement Funds. Our long-term investment philosophy, which includes
diversification across industry segments, has served us well in a very volatile
market environment. The last six months has been a period of day-to-day
functions within the markets and has rewarded the investor with a longer-term
view of investing, while at the same time penalized others who attempt to
capitalize solely on short-term market movements. The accompanying Investment
Adviser's Report by First Security Investment Management, Inc. provides a more
detailed discussion of current market conditions, as well as, a market outlook
by Sterling Jenson.
As we continue through the year 2000, we stay committed to our investment
strategy and our goal of providing solid long-term returns for our shareholders.
We thank you for your continued support of the Achievement Funds 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/FREDERICK A. MORETON JR.
FREDERICK A. MORETON, JR.
CHAIRMAN OF THE BOARD OF TRUSTEES
The Achievement Funds Trust
/S/JOHN L. RUDISILL
JOHN L. RUDISILL
SENIOR VICE PRESIDENT AND MANAGER
Mutual Fund Center
First Security Corporation
2
<PAGE>
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.
================================================================================
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
Since the Federal Reserve's most recent interest rate hike, it would be hard to
craft a more agreeable mix of economic data. For three months now, inflation
data has been better than expected, with the housing market showing clear signs
of weakening and the "core" levels of both CPI and PPI demonstrating containment
of broad-based inflation. Indeed, talk has emerged that a coordinated global
economic slowdown may lie ahead and that the next move for the Federal Reserve
could be to lower interest rates, not raise them for a seventh time.
Well, talk is cheap. So, before we get too giddy about the prospects of a "SOFT
LANDING," we must acknowledge the obvious. Consumers and businesses are
currently subject to specific pockets of inflation and economic growth that can
be described as nothing short of robust.
The bond and stock market appear to be discounting lower rates in the midst of
booming economic growth and select commodity inflation. Why? The key reason is
that American businesses continue to post spectacular productivity gains, which
enable them to rev up output even as they cope with a shortage of workers and
higher energy costs. As a result, the inflation dragon is spewing less fire than
anyone dared hope so late into this record-setting economic expansion.
Businesses have spent the last few years applying new technologies and spending
record sums on capital equipment in an effort to squeeze more output out of
their existing workforce. The results have been staggering. Productivity, or
output per hour, has doubled over the past five years, sharply increasing the
non-inflationary growth potential of the U.S. economy. Keep in mind that as an
expansion matures it is natural for productivity to taper off. That's because
businesses are forced to rely more heavily on the less skilled segment of the
workforce to meet staffing needs, which by definition dilutes average worker
efficiency. At the same time, equipment breakdowns tend to occur with more
frequency and less efficient plants are reopened to meet demand, developments
that clearly are associated with declining productivity.
For the most part, core inflation has remained remarkably subdued in recent
years, despite the spike in oil prices and increasing worker compensation. The
benign inflation trend was again confirmed with the government's report on
wholesale prices for July. Even energy prices calmed down during the month,
resulting in an unchanged reading for the overall producer price index. But this
series is up a disturbing 4.1 percent over its level from last year, thanks to
the 20 percent increase in energy costs. What's more, after declining slightly
in July, crude oil prices are on the rise again this month, which will probably
boost the PPI for August. However, it is the "CORE" data that reflects
underlying inflation pressures as it excludes volatile food and energy prices.
On this score, inflation is tame.
Certainly, the benign inflation reading and the sustained productivity gains
being racked up in the business sector would seem to assure that the Fed's work
is done for now. There is even a hint of sentiment, as alluded to earlier, that
the Fed's next move will be to lower rates. This feeling is still on the whisper
level but starting to make the rounds. Clearly, the fixed income markets are
convinced that the Fed will not be a factor over the near term.
4
<PAGE>
THE ACHIEVEMENT FUNDS
Bond yields have plunged to their lowest levels in nearly a year, and investors
have enthusiastically snapped up the Treasury's latest offering of notes and
bonds at its quarterly auction.
But there is still an underlying unease about the fundamental strength of the
U.S. economy. There is no denying the fact that the sustained improvement in
business productivity and tame inflation readings are key ingredients for a
steady Fed policy and healthy financial market backdrop. However, productivity
cannot continue to increase indefinitely, and the potential for supply to
accommodate demand is not infinitely elastic. Hence, it is important to monitor
demand, particularly consumer demand, to see that it remains within the
economy's output potential. However, it seems that the near-term script has been
written, and the Fed will continue to "SIT THE BENCH."
THE ACHIEVEMENT EQUITY FUND
--------------------------------------------------------------------------------
Economic growth has remained strong, however, three interest hikes by the Fed
since the beginning of the year, totaling 1.00%, and historically high
price/earnings multiples have had the impact of restraining equity returns. The
P/E multiple for the S&P 500 for Fiscal Year-1 estimates is currently at 27.
This remains significantly above historic norms but below levels experienced in
1999 and the fourth quarter of 1998. The S&P 500 posted a return of -2.61%
without dividends reinvested and -1.97% with dividends reinvested for the first
seven months of 2000. The Achievement Equity Fund (Institutional Class)
outperformed the S&P benchmark during the period, posting a positive return of
8.34%. We remain committed to investing in high quality stocks with current and
expected ongoing earnings momentum. Strong management, business models and
market presence should drive performance long-term. We overweight sectors that
include a higher than average percentage of companies meeting these criteria and
underweight those that don't stack up. Worst performing sectors so far this year
include basic materials, communication services, and consumer cyclical. Best
performing sectors year-to-date include utility, financial and health care.
Corporate earnings growth has generally remained strong, with more upward
surprises than downward. Economic growth is expected to slow to merely good
growth from exceptional growth. This combined with tame "core" inflation and the
expectation that the Fed will be on hold should allow the stock market to
continue its climb from the negative side of the year-to-date return ledger into
the positive side.
THE ACHIEVEMENT BALANCED FUND
--------------------------------------------------------------------------------
Equities have struggled in 2000 due to investor concerns over Federal Reserve
activity and fears of the potential for renewed inflation. Given this scenario
it would be expected that bonds would be in the same camp. However, due to a
reduction in the supply of government debt, yields have actually declined
year-to-date causing prices to increase, particularly for the longer maturities.
The fixed income portion of the Balanced Fund has done its job by increasing
income and decreasing volatility relative to an all-equity fund. The equity
portion allows the Balanced Fund to grow along with the economy. For this
reason, the Balanced Fund main-
5
<PAGE>
tains a higher percentage in equities than in bonds. The Fund's asset allocation
as of July 31, 2000, was 69.2% equity, 30% fixed income and .8% cash
equivalents.
The equity portion of the Fund has maintained slightly overweighted positions in
technology and finance, while being underweighted in consumer staples, basic
materials, transportation and utilities. Concerns over valuation as well as
growth and earnings multiples have caused us to trim back the technology
weighting recently.
The fixed income portion of the Fund continues to be structured with a slightly
longer weighted average maturity and duration than the comparative Lehman
Intermediate Government/Credit Bond Index. We expect rates and credits to be
quite stable going forward. There is currently no yield advantage to buying
longer Treasuries at this point so average maturity and duration will be
maintained near the recent range of experience.
We expect that both the stock and bond market will generally perform positively
through the remainder of the year likely without the exceptional equity returns
that have been enjoyed over the previous five calendar years.
THE ACHIEVEMENT
INTERMEDIATE TERM BOND FUND
--------------------------------------------------------------------------------
The Fed raised the Fed Funds Target Rate three times between the end of January
and the end of July. Two of the moves were of the 0.25% variety and one was
0.50% totaling 1.00%. Normally, it would be expected that Treasury notes and
bonds would follow suit. However, only the 3-month and the 6-month maturities
are higher at the end of July than they were at the end of January. All rates on
maturities 1-year and longer have actually declined during this time frame. The
5-year Treasury yield declined about 0.55% during the period while the 5-year
"A" industrial corporate bond and the 5-year swap rate declined between 0.20%
and 0.25%.
Despite the series of rate hikes by the Federal Reserve, bonds maturing between
two and thirty years are trading at or near their lowest yield levels of the
calendar year. Reduction in yields has been the result of the impact that the
federal budget surplus and Treasury buyback program has had on supply. This may
have resulted in a demand spill over into spread product, causing non-Treasury
rates to also decline. There has been some speculation that the Treasury would
discontinue issuing long bonds. However, the Treasury has announced that they
intend to continue issuing the 30-year bond. The Treasury does however intend on
phasing out the one-year T-bill. The two-year note is trading at 27 basis points
below the Fed Funds rate. The likely causes are plans by the Fed and foreign
central banks to markedly increase their ownership of Treasuries.
Agencies are performing better as most of the headline risk is likely behind us.
There is a possibility however, that the issue will resurface for debate in
September.
Corporate bonds have improved over the past month, generally outperforming
similar duration Treasuries.
6
<PAGE>
THE ACHIEVEMENT FUNDS
Recent economic reports seem to indicate that economic growth is still strong
but is slowing somewhat. Inflation remains moderate, and the Fed appears to be
guiding the economic jet plane in for a soft landing. We do not expect any
further tightening of monetary policy coming from the August meeting and think
that it is unlikely that we will see any additional interest rate increases
during the remainder of the year. We expect that the 10-year Treasury will trade
in a range of 5.75% to 6.50% through the remainder of the third quarter.
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.
THE ACHIEVEMENT SHORT TERM
BOND FUND
--------------------------------------------------------------------------------
Interest rates as measured by the 2-year Treasury decreased by 0.30% from the
end of January through the end of July even though the Fed increased the Fed
Funds Target rate by 1.00% during the same time period. At the same time, yields
on 2-year "A" industrial corporates declined by 0.15% to 0.20%. Treasury and
corporate yields have disconnected from the Fed Funds rate due to reduced supply
issues and lack of evidence for a material increase in the core rate of
inflation.
Bonds have generally outperformed equities on a year-to-date basis. The 2-year
Treasury has returned 3.36% through July 31, compared to -1.97% for the Standard
and Poors 500 with dividends reinvested. The relatively short duration of 1.26
years and average weighted maturity of 1.45 years allows for the maintenance of
a very stable net asset value over time.
Recent economic reports seem to indicate that economic growth is still strong
but is slowing somewhat. Inflation remains moderate, and the Fed appears to be
guiding the economic jet plane in for a soft landing. We do not expect any
further tightening of monetary policy coming from the August meeting and think
that it is unlikely that we will see any additional interest rate increases
during the remainder of the year. We expect that the 2-year Treasury will trade
in a range of 6.00% to 6.50% through the remainder of the third quarter.
THE ACHIEVEMENT IDAHO
MUNICIPAL BOND FUND
--------------------------------------------------------------------------------
Idaho municipal securities remain a valued and scarce commodity amongst both
retail and institutional investors. Strong employment trends and robust economic
growth throughout the state has kept Idaho state and local coffers overflowing
with record tax receipts. The state of Idaho maintains a AAA credit rating, and
as such, has experienced a general decline in interest rates consistent with the
institutional "high grade" scale.
Since January 31st of this year, the interest rate on 15 year, AAA-rated general
obligation municipal bonds has decreased from 5.70 percent to the current level
of 5.14 percent. Recent performance in the bond market suggests that investors
are becoming comfortable with a slowdown in economic growth and the containment
of "core" inflation. The 56 basis point decrease in yield is further indicative
of scarce Idaho municipal bond supply.
7
<PAGE>
Based on recent Federal Reserve action and substantive economic data, we remain
very optimistic regarding the relative attractiveness of the municipal market.
Certainly, Idaho municipal yields will ebb and flow in tandem with taxable
levels, but we believe the competitive advantage for investors in the 28 percent
tax bracket or higher will persist. Currently, the Achievement Idaho Municipal
Bond Fund maintains an average maturity of 16.1 years and an effective duration
of 8.69 years. We expect to modestly increase duration to 10 years in light of
our expectations that inflation will remain subdued and GDP will moderate. The
Fund maintains superior credit quality, with nearly 90% of assets rated AA or
better, and well over half the portfolio is insured. The Fund's goal is to
commit the majority of assets to the intermediate part of the yield curve, while
maintaining ample flexibility to seize upon value-added opportunities.
Currently, we find interesting opportunities in health care, and small issues.
Given the portfolio's tremendous quality, we are currently seeking unique
"story" bonds to enhance yield. Our geographic exposure encompasses the entire
State of Idaho and sector diversification includes appropriate allocations to
healthcare, education, transportation, building, housing and miscellaneous
general obligation/revenue bonds. Income and principal preservation remain the
top priorities.
THE ACHIEVEMENT MUNICIPAL BOND FUND
--------------------------------------------------------------------------------
Since January 31st of this year, the interest rate on 15 year, A-rated general
obligation municipal bonds has decreased from 6.01 percent to the current level
of 5.39 percent. Recent performance in the bond market suggests that investors
are becoming comfortable with a slowdown in economic growth and the containment
of "core" inflation. The 62 basis point decrease in yield is further indicative
of scarce municipal bond supply and the compelling tax-equivalent advantage of
municipal securities versus longer Treasuries.
Much like the U.S. Treasury, the municipal market has benefited from record tax
receipts. As a result, many state and local governments have reduced bond
issuance as budget surpluses abound. Overall issuance is down 30% from last
year's level while demand remains healthy. In addition to lower issuance,
tax-free bonds have benefited handsomely from the reversal of two negative
trends: 1) Institutional demand has improved from property & casualty insurance
companies. As these companies return to profitability, their underlying
portfolios will be enhanced on an after-tax basis by reallocating funds to
municipal bonds. 2) The general decline in the level of interest rates has
diminished the impact of the AMT tax applied to many discount bonds. Demand that
all but evaporated last year for bonds with coupons 5 percent or lower has
re-emerged and substantially improved the liquidity of this segment.
Based on recent Federal Reserve 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 maturity of
19.6 years and an effective duration of 9.24 years. We expect to keep the Fund's
duration near 10 years, and will
8
<PAGE>
THE ACHIEVEMENT FUNDS
lengthen towards this goal upon any weakness in the market. The Fund's goal is
to commit the majority of assets to the intermediate part of the yield curve,
while maintaining ample flexibility to seize upon value-added opportunities
throughout the national market. We constantly appraise the fixed income arena
for value, which may occur for a variety of reasons. Some reasons include buyer
preferences for specific structures, underlying credit uncertainties, or
investor unfamiliarity with special redemption language, imbedded options,
and/or 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.
Currently, we find interesting opportunities in health care and small issues. To
balance out the portfolio's "story" bonds, we maintain meaningful positions in
"index" bonds to consistently provide accurate pricing and liquidity. Our
geographic exposure is broad-based with more than 40 states. Additionally, the
credit risk of the Achievement Municipal Bond Fund is under constant review,
with many of the positions prerefunded and backed with U.S. Treasuries. Income
and principal preservation remain the top priorities.
/S/STERLING K. JENSON
STERLING K. JENSON, CFA
PRESIDENT AND CHIEF EXECUTIVE OFFICER
First Security Investment Management
9
<PAGE>
JULY 31, 2000 (UNAUDITED)
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
EQUITY FUND
--------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS]
Cash Equivalents 1.4%
Telephone & Telecommunications 10.5%
Technologies 33.0%
Financial 16.6%
Consumer Products 10.6%
Retail 8.2%
Chemicals & Drugs 11.5%
Oil-Energy 3.8%
Other 4.4%
% OF TOTAL PORTFOLIO INVESTMENTS
--------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS -- 98.6%
BANKS -- 5.3%
Chase Manhattan 120,000 $ 5,962
Citigroup 100,000 7,056
Wells Fargo 100,000 4,131
--------
17,149
--------
BIOLOGICAL PRODUCTS -- 0.9%
Amgen* 45,000 2,922
--------
CAPITAL GOODS -- 4.7%
General Electric 300,000 15,431
--------
COMPUTER SOFTWARE -- 7.3%
Microsoft* 150,000 10,472
Oracle* 176,331 13,258
--------
23,730
--------
COMPUTERS & SERVICES -- 11.0%
Cisco Systems* 200,000 13,087
Dell Computer* 140,000 6,151
Hewlett-Packard 40,000 4,367
International Business
Machines 30,000 3,373
Sun Microsystems* 80,000 8,435
--------
35,413
--------
DIVERSIFIED MANUFACTURING -- 2.2%
Tyco International Ltd. 133,000 7,115
--------
--------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
DRUGS -- 8.3%
Abbott Laboratories 100,000 $ 4,162
Merck 90,000 6,452
Pfizer 180,000 7,763
Pharmacia 75,000 4,106
Schering-Plough 100,000 4,319
--------
26,802
--------
FINANCIAL SERVICES -- 8.1%
American Express 105,000 5,952
Capital One Financial 170,000 9,966
Fannie Mae 21,630 1,079
Morgan Stanley Dean Witter 100,000 9,125
--------
26,122
--------
FOOD, BEVERAGE & TOBACCO -- 4.2%
Coca-Cola 130,000 7,971
PepsiCo 120,000 5,498
--------
13,469
--------
INSURANCE -- 3.3%
American International
Group 120,000 10,523
--------
INTERNET CONTENT -- 4.1%
America Online* 100,000 5,331
Yahoo* 61,000 7,850
--------
13,181
--------
MEASURING DEVICES -- 0.2%
Agilent Technologies* 15,256 622
--------
MEDICAL PRODUCTS & SERVICES -- 2.3%
Guidant* 60,000 3,383
Johnson & Johnson 45,000 4,188
--------
7,571
--------
PAPER & PAPER PRODUCTS -- 1.8%
Kimberly-Clark 100,000 5,744
--------
PETROLEUM REFINING -- 3.8%
Exxon Mobil 100,000 8,000
Texaco 85,000 4,202
--------
12,202
--------
PRINTING & PUBLISHING -- 1.8%
McGraw-Hill 100,000 5,944
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
THE ACHIEVEMENT FUNDS
--------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
RETAIL -- 8.2%
Gap 150,000 $ 5,372
Home Depot 150,000 7,763
Target 180,000 5,220
Wal-Mart Stores 150,000 8,241
--------
26,596
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 10.7%
Analog Devices* 120,000 8,025
Intel 220,000 14,685
JDS Uniphase* 100,000 11,813
--------
34,523
--------
TELEPHONES & TELECOMMUNICATION -- 10.4%
AT&T 150,000 4,641
Nortel Networks 112,000 8,330
Qwest Communications
International* 190,000 8,918
SBC Communications 107,000 4,554
Worldcom* 187,500 7,324
--------
33,767
--------
TOTAL COMMON STOCKS
(Cost $210,541) 318,826
--------
CASH EQUIVALENTS -- 1.4%
SEI Daily Income Trust
Money Market Fund 4,470,317 4,470
SEI Daily Income Trust
Prime Obligation Fund 87,932 88
--------
TOTAL CASH EQUIVALENTS
(Cost $4,558) 4,558
--------
TOTAL INVESTMENTS -- 100.0%
(Cost $215,099) 323,384
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% (126)
--------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 15,455,725 outstanding
shares of beneficial interest $176,343
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value) based on
668,841 outstanding shares of beneficial
interest 9,573
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 153,818 outstanding shares of
beneficial interest 2,532
Accumulated net investment loss (115)
Accumulated net realized gain on investments 26,640
Net unrealized appreciation on investments 108,285
--------
TOTAL NET ASSETS -- 100.0% $323,258
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $19.87
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS A $19.76
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($19.76 / 95.5%) $20.69
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B $19.42
========
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
LTD. -- LIMITED
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11
<PAGE>
JULY 31, 2000 (UNAUDITED)
Statement of Net Assets
--------------------------------------------------------------------------------
BALANCED FUND
--------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS]
Non-Agency Mortgage-Backed Securities 1.7%
Common Stocks 69.2%
Treasury Obligations 11.5%
Corporate Securities 10.4%
Other 6.4%
Cash Equivalent 0.8%
% OF TOTAL PORTFOLIO INVESTMENTS
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 11.4%
U.S. Treasury Notes
7.875%, 08/15/01 $2,500 $ 2,536
7.875%, 11/15/04 2,500 2,650
7.750%, 02/15/01 2,500 2,518
7.500%, 05/15/02 2,500 2,547
7.250%, 05/15/04 2,500 2,581
6.625%, 05/15/07 3,000 3,072
5.500%, 03/31/03 3,000 2,938
5.500%, 02/15/08 3,000 2,881
4.750%, 11/15/08 3,000 2,732
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $24,340) 24,455
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.3%
Federal Home Loan Bank
7.250%, 05/15/03 2,500 2,519
6.250%, 08/13/04 2,000 1,947
Federal Home Loan Mortgage
Corporation
7.625%, 09/09/09 1,000 981
6.450%, 04/29/09 2,000 1,865
Federal National Mortgage
Association
7.125%, 02/15/05 2,000 2,010
6.500%, 08/15/04 2,000 1,966
6.000%, 05/15/08 2,500 2,336
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $13,973) 13,624
--------
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
CORPORATE BONDS -- 8.4%
BANKS -- 3.4%
Banc One
7.250%, 08/01/02 $1,500 $ 1,498
Bank of America, MTN
7.125%, 05/12/05 2,000 1,970
Chase Manhattan
6.500%, 01/15/09 2,000 1,857
First Union
7.500%, 07/15/06 2,000 1,967
--------
7,292
--------
FINANCE -- 1.3%
Aetna Services
7.125%, 08/15/06 1,500 1,431
Safeco
6.875%, 07/15/07 1,500 1,397
--------
2,828
--------
FOOD, BEVERAGE & TOBACCO -- 0.9%
Philip Morris
7.250%, 09/15/01 2,000 1,975
--------
RETAIL -- 0.9%
Albertson's
6.950%, 08/01/09 2,000 1,902
--------
TELEPHONE & TELECOMMUNICATIONS -- 0.9%
Lucent Technologies
7.250%, 07/15/06 2,000 2,010
--------
TRANSPORTATION -- 1.0%
USFreightways
8.500%, 04/15/10 2,000 2,002
--------
TOTAL CORPORATE BONDS
(Cost $18,539) 18,009
--------
YANKEE BONDS -- 1.9%
Ford Motor Credit
6.250%, 11/08/00 1,000 997
Seagram
6.500%, 04/01/03 1,000 977
Walt Disney
5.125%, 12/15/03 2,255 2,117
--------
TOTAL YANKEE BONDS
(Cost $4,217) 4,091
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
THE ACHIEVEMENT FUNDS
--------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES -- 1.7%
American Southwest
Financial Securities,
Series 1996-FHA1, Cl A2
7.000%, 11/25/38 $ 591 $ 581
Donaldson Lufkin Jenrette
Mortgage Acceptance,
Series 1997-CF1, Cl A1B (A)
7.600%, 04/15/07 1,200 1,206
General Motors Acceptance,
Commercial Mortgage
Securities,
Series 1999-C1, Cl A2
6.175%, 05/15/33 2,000 1,828
--------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $3,829) 3,615
--------
COMMON STOCKS -- 68.7%
BANKS -- 3.8%
Chase Manhattan 48,000 2,385
Citigroup 53,000 3,740
Wells Fargo 50,900 2,103
--------
8,228
--------
BIOLOGICAL PRODUCTS -- 0.7%
Amgen* 23,000 1,494
--------
CAPITAL GOODS -- 3.8%
General Electric 160,000 8,230
--------
COMPUTER SOFTWARE -- 5.2%
Microsoft* 69,800 4,873
Oracle* 83,200 6,256
--------
11,129
--------
COMPUTERS & SERVICES -- 7.4%
Cisco Systems* 97,800 6,400
Dell Computer* 67,000 2,944
Hewlett-Packard 12,000 1,310
International Business
Machines 13,200 1,484
Sun Microsystems* 36,000 3,796
--------
15,934
--------
DIVERSIFIED MANUFACTURING -- 1.2%
Tyco International Ltd. 47,000 2,514
--------
--------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
DRUGS -- 5.2%
Abbott Laboratories 35,000 $ 1,457
Merck 58,000 4,158
Pfizer 39,000 1,682
Pharmacia 30,000 1,643
Schering-Plough 50,000 2,159
--------
11,099
--------
ENTERTAINMENT -- 0.9%
Walt Disney 49,000 1,896
--------
FINANCIAL SERVICES -- 6.1%
American Express 69,000 3,911
Capital One Financial 73,000 4,280
Fannie Mae 8,652 432
Morgan Stanley Dean Witter 50,000 4,563
--------
13,186
--------
FOOD, BEVERAGE & TOBACCO -- 2.7%
Coca-Cola 45,000 2,759
PepsiCo 67,000 3,069
--------
5,828
--------
INSURANCE -- 2.4%
American International Group 60,000 5,261
--------
INTERNET CONTENT -- 3.1%
America Online* 50,000 2,666
Yahoo* 30,200 3,886
--------
6,552
--------
MEASURING DEVICES -- 0.1%
Agilent Technologies* 4,576 186
--------
MEDICAL PRODUCTS & SERVICES -- 1.8%
Guidant* 43,000 2,424
Johnson & Johnson 15,000 1,396
--------
3,820
--------
PETROLEUM REFINING -- 3.5%
Exxon Mobil 67,683 5,415
Texaco 42,000 2,076
--------
7,491
--------
PRINTING & PUBLISHING -- 1.1%
McGraw-Hill 40,000 2,378
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
13
<PAGE>
JULY 31, 2000 (UNAUDITED)
STATEMENT OF NET ASSETS
BALANCED FUND (CONCLUDED)
--------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
RETAIL -- 5.7%
Gap 40,000 $ 1,433
Home Depot 70,500 3,648
Target 104,000 3,016
Wal-Mart Stores 76,000 4,175
--------
12,272
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 7.0%
Analog Devices* 43,800 2,929
Intel 92,800 6,194
JDS Uniphase* 50,000 5,906
--------
15,029
--------
TELEPHONES & TELECOMMUNICATION -- 7.0%
AT&T 82,500 2,552
Nortel Networks 50,000 3,719
Qwest Communications
International* 60,000 2,816
SBC Communications 55,000 2,341
Worldcom* 93,000 3,633
--------
15,061
--------
TOTAL COMMON STOCKS
(Cost $96,310) 147,588
--------
CASH EQUIVALENT -- 0.8%
SEI Daily Income Trust
Money Market Fund 1,785,920 1,786
--------
TOTAL CASH EQUIVALENT
(Cost $1,786) 1,786
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $162,994) 213,168
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.8% 1,625
--------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 14,277,679 outstanding
shares of beneficial interest $146,985
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value)
based on 242,092 outstanding shares
of beneficial interest 2,739
Portfolio Shares of Retail Class B (unlimited
authorization -- no par value)
based on 137,537 outstanding shares
of beneficial interest 1,861
Undistributed net investment income 39
Accumulated net realized gain on investments 12,995
Net unrealized appreciation on investments 50,174
--------
TOTAL NET ASSETS -- 100.0% $214,793
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $14.66
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS A $14.63
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($14.63 / 95.5%) $15.32
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B $14.60
========
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
CL -- CLASS
LTD. -- LIMITED
MTN -- MEDIUM TERM NOTE
(A) SECURITY SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTION 144A OF THE SECURITIES ACT OF 1933, AS
AMENDED, AND MAY BE SOLD ONLY TO DEALERS IN THE PROGRAM OR OTHER "ACCREDITED
INVESTORS". SUCH INVESTMENTS AMOUNT TO $1,205,697 IN AGGREGATE, WHICH
REPRESENT 0.56% OF THE TOTAL NET ASSETS OF THE FUND.
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
THE ACHIEVEMENT FUNDS
--------------------------------------------------------------------------------
INTERMEDIATE TERM BOND FUND
--------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS]
Corporate Securities 35.1%
U.S. Government Securities 51.6%
Other 0.6%
Cash Equivalents 1.2%
Asset-Backed Securities 3.9%
Non-Agency Mortgage-Backed Securities 7.6%
% OF TOTAL PORTFOLIO INVESTMENTS
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 31.4%
U.S. Treasury Bonds
7.125%, 02/15/23 $2,000 $ 2,249
6.250%, 08/15/23 2,000 2,041
U.S. Treasury Notes
7.875%, 08/15/01 1,000 1,014
7.500%, 11/15/01 1,000 1,013
7.500%, 02/15/05 1,000 1,048
7.000%, 07/15/06 2,000 2,077
6.875%, 05/15/06 1,000 1,032
6.500%, 03/31/02 2,000 2,002
6.500%, 08/15/05 2,000 2,024
6.500%, 10/15/06 5,000 5,072
6.375%, 09/30/01 2,500 2,498
6.250%, 08/31/02 4,000 3,991
6.250%, 02/15/03 1,000 998
6.250%, 02/15/07 3,000 3,010
6.125%, 12/31/01 6,000 5,974
6.125%, 08/15/07 3,000 2,990
5.875%, 02/15/04 3,000 2,964
5.875%, 11/15/05 1,000 985
5.750%, 08/15/03 1,000 985
5.500%, 05/31/03 3,000 2,936
5.375%, 06/30/03 2,000 1,951
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $49,506) 48,854
--------
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 19.6%
Federal Farm Credit Bank, MTN
7.310%, 11/05/07 $2,000 $ 2,025
Federal Home Loan Bank
7.390%, 08/22/01 1,000 1,005
7.380%, 08/05/04 1,000 1,013
7.375%, 02/12/10 3,000 3,049
7.280%, 07/25/01 1,000 1,004
6.375%, 08/15/06 1,000 969
6.250%, 08/13/04 1,000 974
6.185%, 05/06/08 3,035 2,870
5.600%, 10/28/03 1,000 959
5.450%, 01/12/09 2,000 1,787
Federal Home Loan Mortgage
Corporation
7.625%, 09/09/09 2,500 2,453
7.020%, 06/23/09 2,000 1,928
6.795%, 12/01/03 1,000 995
6.450%, 04/29/09 2,000 1,865
5.900%, 02/14/06 1,000 950
5.750%, 07/15/03 2,000 1,937
Federal National Mortgage
Association
6.375%, 06/15/09 1,000 949
5.750%, 04/15/03 1,000 971
4.750%, 11/14/03 2,000 1,874
Federal National Mortgage
Association, MTN
6.760%, 07/16/07 1,000 965
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $31,914) 30,542
--------
CORPORATE BONDS -- 32.5%
AUTOMOTIVE -- 0.6%
TRW
6.450%, 06/15/01 1,000 993
--------
BANKS -- 5.6%
Bank of America
7.625%, 04/15/05 1,000 1,002
7.125%, 05/01/06 2,000 1,955
Chase Manhattan
8.125%, 06/15/02 1,000 1,014
6.375%, 02/15/08 1,000 927
Citicorp
7.125%, 06/01/03 1,000 992
First Tennessee Bank
5.750%, 12/01/08 1,000 850
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
15
<PAGE>
JULY 31, 2000 (UNAUDITED)
STATEMENT OF NET ASSETS
INTERMEDIATE TERM BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
BANKS -- (CONTINUED)
First Union
7.050%, 08/01/05 $1,000 $ 971
KeyCorp
7.250%, 06/01/05 1,000 980
--------
8,691
--------
BUILDING PRODUCTS -- 1.2%
CSR America
6.875%, 07/21/05 2,000 1,933
--------
ELECTRICAL UTILITIES -- 5.0%
Consolidated Edison
6.375%, 04/01/03 1,000 983
6.150%, 07/01/08 1,000 915
Monogahela Power, MTN
7.360%, 01/15/10 1,000 979
Pacific Gas & Electric, MTN
6.680%, 03/19/03 1,000 986
Philadelphia Electric
6.625%, 03/01/03 1,000 979
Public Service Electric & Gas
6.500%, 05/01/04 1,000 968
Rochester Gas & Electric, MTN
6.375%, 07/30/03 1,000 967
Scana, MTN
6.250%, 07/08/03 1,000 966
--------
7,743
--------
FINANCE -- 6.4%
Associates of North America, MTN
7.540%, 04/14/04 1,000 999
6.810%, 08/03/01 1,000 996
Capital One Bank
7.080%, 10/30/01 1,000 994
CitiFinancial
6.875%, 05/01/02 1,000 995
Ford Motor Credit
8.000%, 06/15/02 1,000 1,011
7.750%, 03/15/05 1,000 1,004
General Motors Acceptance, MTN
7.250%, 05/15/03 1,000 996
Household Finance
7.650%, 05/15/07 1,000 985
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
FINANCE -- (CONTINUED)
J.P. Morgan
7.250%, 01/15/02 $1,000 $ 999
Lehman Brothers Holdings
6.125%, 07/15/03 1,000 957
--------
9,936
--------
FOOD, BEVERAGE & TOBACCO -- 1.9%
Diageo PLC
7.125%, 09/15/04 1,000 990
Nabisco
6.700%, 06/15/02 1,000 974
Sara Lee, MTN
7.400%, 03/22/02 1,000 1,000
--------
2,964
--------
INSURANCE -- 1.3%
Aetna Services
6.750%, 08/15/01 2,000 1,985
--------
PETROLEUM PRODUCTS & SERVICES -- 0.6%
Kerr-McGee
6.625%, 10/15/07 1,000 931
--------
RAILROADS -- 0.6%
CSX Transportation
7.540%, 03/15/03 1,000 1,000
--------
RENTAL EQUIPMENT -- 1.9%
Hertz
7.000%, 07/01/04 2,000 1,960
Ryder System, MTN
7.340%, 11/01/00 1,040 1,036
--------
2,996
--------
RETAIL -- 3.8%
J.C. Penney, MTN
7.050%, 05/23/05 1,000 894
Sears Roebuck Acceptance
6.950%, 05/15/02 1,000 991
Sears Roebuck Acceptance, MTN
6.580%, 11/20/03 1,000 971
Target
7.500%, 07/15/06 2,000 1,983
Wal-Mart Stores
6.500%, 06/01/03 1,000 989
--------
5,828
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
THE ACHIEVEMENT FUNDS
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION -- 3.6%
AT&T
6.750%, 04/01/04 $1,000 $ 979
GTE California
5.500%, 01/15/09 1,000 863
Qwest
5.625%, 11/15/08 1,000 865
SBC Communications
7.000%, 07/15/04 1,000 989
SBC Communications Capital
5.750%, 09/01/04 1,000 946
Telstra Ltd. (A)
6.500%, 07/31/03 1,000 978
--------
5,620
--------
TOTAL CORPORATE BONDS
(Cost $52,872) 50,620
--------
YANKEE BONDS -- 2.2%
Dow Capital
7.125%, 01/15/03 1,000 993
Walt Disney
6.750%, 03/30/06 2,000 1,955
Worldcom
6.125%, 08/15/01 500 494
--------
TOTAL YANKEE BONDS
(Cost $3,545) 3,442
--------
ASSET-BACKED SECURITIES -- 3.8%
Champion Home Equity Loan Trust,
Series 1997-2, Cl A3
6.770%, 03/25/15 2,000 1,972
Olympic Automobile Receivables
Trust, Series 1996-B, Cl A5
6.900%, 02/15/04 2,000 1,998
WFS Financial Owner Trust,
Series 1998-B, Cl A4
6.050%, 04/20/03 2,000 1,977
--------
TOTAL ASSET-BACKED SECURITIES
(Cost $6,000) 5,947
--------
--------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
GOVERNMENT AGENCY MORTGAGE-
BACKED SECURITY -- 0.6%
Federal National Mortgage
Association
6.440%, 05/01/08 $ 977 $ 942
--------
TOTAL GOVERNMENT AGENCY MORTGAGE-
BACKED SECURITY
(Cost $986) 942
--------
MORTGAGE-BACKED SECURITIES -- 7.5%
American Southwest Financial
Securities,
Series 1996-FHA1, Cl A2
7.000%, 11/25/38 1,182 1,162
Donaldson Lufkin Jenrette
Mortgage Acceptance,
Series 1996-CF2,
Cl A1B (A)
7.290%, 11/12/21 3,000 2,991
Donaldson Lufkin Jenrette
Mortgage Acceptance,
Series 1997-CF1, Cl A1B (A)
7.600%, 04/15/07 2,000 2,009
General Motors Acceptance,
Commercial Mortgage
Securities,
Series 1999-C1, Cl A2
6.175%, 05/15/33 3,000 2,742
Lehman Brothers Commercial
Conduit Mortgage Trust,
Series 1998-C1, Cl B
6.590%, 02/18/30 3,000 2,795
--------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $12,315) 11,699
--------
CASH EQUIVALENT -- 1.3%
SEI Daily Income Trust
Money Market Fund 1,910,929 1,911
--------
TOTAL CASH EQUIVALENT
(Cost $1,911) 1,911
--------
TOTAL INVESTMENTS -- 98.9%
(Cost $159,049) 153,957
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.1% 1,722
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
17
<PAGE>
JULY 31, 2000 (UNAUDITED)
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS
INTERMEDIATE TERM BOND FUND (CONCLUDED)
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 15,391,312 outstanding
shares of beneficial interest $162,733
Portfolio Shares of Retail Class A (unlimited
authorization -- no par value)
based on 116,942 outstanding shares of
beneficial interest 1,191
Accumulated net realized loss on investments (3,153)
Net unrealized depreciation on investments (5,092)
--------
TOTAL NET ASSETS -- 100.0% $155,679
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.04
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS A $10.06
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.06 / 96.5%) $10.42
========
--------------------------------------------------------------------------------
CL -- CLASS
LTD. -- LIMITED
MTN -- MEDIUM TERM NOTE
PLC -- PUBLIC LIMITED COMPANY
(A) SECURITY SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTION 144A OF THE SECURITIES ACT OF 1933, AS
AMENDED, AND MAY BE SOLD ONLY TO DEALERS IN THE PROGRAM OR OTHER "ACCREDITED
INVESTORS". SUCH INVESTMENTS AMOUNT TO $5,978,426 IN AGGREGATE, WHICH
REPRESENTS 3.8% OF THE TOTAL NET ASSETS OF THE FUND.
--------------------------------------------------------------------------------
SHORT TERM BOND FUND
--------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS]
Corporate Securities 57.8%
U.S. Government Securities 38.7%
Cash Equivalents 3.5%
% OF TOTAL PORTFOLIO INVESTMENTS
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 10.4%
U.S. Treasury Notes
6.375%, 09/30/01 $1,000 $ 999
6.250%, 01/31/02 1,000 998
6.125%, 12/31/01 1,000 996
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $3,058) 2,993
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 27.5%
Federal Home Loan Bank
7.250%, 02/28/03 1,000 1,001
7.250%, 05/13/05 1,000 1,010
6.080%, 07/08/02 2,000 1,971
5.435%, 01/29/02 1,000 979
Federal Home Loan Mortgage
6.250%, 10/15/02 1,000 987
Federal National Mortgage
Association, MTN
6.500%, 09/05/02 1,000 987
5.410%, 02/04/02 1,000 975
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $8,011) 7,910
--------
(CONTINUED)
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 -- 49.8%
BANKS -- 6.9%
Bank One, MTN
6.700%, 03/15/02 $1,000 $ 989
KeyCorp, MTN
6.750%, 05/29/01 1,000 995
--------
1,984
--------
ELECTRICAL UTILITIES -- 3.5%
Scottish Power PLC, MTN
7.250%, 09/09/02 1,000 998
--------
FINANCE -- 20.7%
Bear Stearns
6.750%, 05/01/01 1,000 994
Beneficial, MTN
6.330%, 12/18/00 1,000 998
Goldman Sachs Group LP (A)
6.200%, 12/15/00 1,000 997
International Lease Finance
5.450%, 01/04/02 1,000 971
John Deere Capital, MTN
6.150%, 08/01/00 1,000 1,000
Merrill Lynch
6.500%, 04/01/01 1,000 996
--------
5,956
--------
GAS/NATURAL GAS -- 1.3%
Northern Illinois Gas
6.450%, 08/01/01 375 373
--------
INSURANCE -- 3.5%
Aetna Services
6.750%, 08/15/01 1,000 993
--------
PAPER & PAPER PRODUCTS -- 3.5%
Mead Corporation
6.600%, 03/01/02 1,000 991
--------
RETAIL -- 6.9%
JC Penney, MTN
6.375%, 09/15/00 1,000 996
Sears Roebuck Acceptance, MTN
6.400%, 09/25/00 1,000 999
--------
1,995
--------
--------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION -- 3.5%
Lucent Technologies
6.900%, 07/15/01 $1,000 $ 1,001
--------
TOTAL CORPORATE BONDS
(Cost $14,525) 14,291
--------
YANKEE BONDS -- 6.9%
General Motors Acceptance
5.500%, 01/14/02 1,000 976
Household Finance
8.000%, 05/09/05 1,000 1,010
--------
TOTAL YANKEE BONDS
(Cost $2,012) 1,986
--------
CASH EQUIVALENTS -- 3.5%
SEI Daily Income Trust
Money Market Fund 919,181 919
SEI Daily Income Trust
Prime Obligation Fund 71,174 71
--------
TOTAL CASH EQUIVALENTS
(Cost $990) 990
--------
TOTAL INVESTMENTS -- 98.1%
(Cost $28,596) 28,170
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.9% 542
--------
TOTAL NET ASSETS -- 100% $ 28,712
========
--------------------------------------------------------------------------------
LP -- LIMITED PARTNERSHIP
MTN -- MEDIUM TERM NOTE
PLC -- PUBLIC LIMITED COMPANY
(A) SECURITY SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTION 144A OF THE SECURITIES ACT OF 1933, AS
AMENDED, AND MAY BE SOLD ONLY TO DEALERS IN THE PROGRAM OR OTHER "ACCREDITED
INVESTORS". SUCH INVESTMENTS AMOUNT TO $996,820 IN AGGREGATE, WHICH
REPRESENTS 3.50% OF THE TOTAL NET ASSETS OF THE FUND.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
19
<PAGE>
JULY 31, 2000 (UNAUDITED)
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
IDAHO MUNICIPAL BOND FUND
--------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS]
General Obligations 44.0%
Other Asset 4.8%
Revenue Bonds 47.4%
Cash Equivalent 2.8%
Tax Allocation 1.0%
% OF TOTAL PORTFOLIO INVESTMENTS
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.9%
IDAHO -- 91.3%
Ada & Canyon Counties,
Joint School
District # 2 GO
5.500%, 07/30/15 $1,075 $ 1,094
5.500%, 07/30/16 500 505
Ammon, Urban Renewal
Agency, Series B,
Pre-refunded @ 100, TA,
LOC (A)
6.000%, 08/01/06 120 125
Bannock County, School
District # 25 GO, FGIC
5.250%, 08/01/15 500 498
Bingham County, School
District # 055 GO, MBIA
5.650%, 08/01/15 560 570
Blackfoot, Wastewater
Treatment Plant
Facilities Project
COP, AMBAC
5.800%, 09/01/18 135 140
5.850%, 09/01/19 115 119
Boise, Urban Renewal RB,
Ada County Courts, AMBAC
5.900%, 08/15/29 500 509
Boise Airport COP, Package
Facility Project,
Series A, AMBAC
5.400%, 08/01/11 500 507
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
IDAHO -- (CONTINUED)
Boise, Urban Renewal,
Tax Increment Capital
City Development
Project, TA, FSA
5.100%, 09/01/14 $ 365 $ 361
5.150%, 09/01/15 385 381
Boise State University RB, FSA
5.000%, 04/01/23 1,000 929
Boise State University RB,
Student Union & Housing
System Project, MBIA
5.250%, 04/01/17 160 159
Boise, Independent
School District GO
5.500%, 07/30/16 1,000 1,002
Bonneville & Bingham, School
District # 93 GO,
Series A, FGIC
5.750%, 07/30/07 500 527
5.500%, 07/30/10 500 519
Bonneville GO, FSA
5.500%, 08/01/16 590 596
Canyon, School District
# 132 GO, FSA
5.400%, 07/30/12 400 409
5.450%, 07/30/14 470 477
5.450%, 07/30/15 900 909
Cassia & Twin Falls,
Joint School
District # 151 GO, FGIC
5.375%, 08/01/14 500 506
5.375%, 08/01/16 1,000 1,002
Elks, Health Facility
Authority RB, Rehabilitation
Hospital Project
5.000%, 07/15/08 250 225
5.125%, 07/15/13 500 418
5.450%, 07/15/23 715 560
Elmore, School District
# 193 GO, AMBAC
5.000%, 07/31/10 100 101
Fremont & Madison, School
District # 215 GO, FSA
5.600%, 08/01/14 125 127
5.600%, 08/01/15 765 776
Gooding & Lincoln, Joint School
District # 231 GO, FSA,
Pre-refunded @ 100 (A)
6.250%, 02/01/04 130 137
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)
Idaho State Building
Authority RB,
Series C, MBIA
5.600%, 09/01/05 $ 100 $ 103
Idaho State Building
Authority RB,
Series A, MBIA
5.000%, 09/01/21 1,150 1,055
Idaho State Health Facility
Authority RB, Bannock
Regional Medical Project
5.250%, 05/01/14 250 218
Idaho State Health Facility
Authority RB, Holy Cross
Health Systems, MBIA
5.250%, 12/01/14 500 497
5.000%, 12/01/18 500 467
5.000%, 12/01/28 40 35
Idaho State Health Facility
Authority RB, IHC Hospital
Project, ETM
6.650%, 02/15/21 150 171
Idaho State Health Facility
Authority RB, Magic Valley
Regional Medical
Center, AMBAC
5.625%, 12/01/13 200 204
Idaho State Health Facility
Authority RB, Mercy Medical
Center Project,
Pre-refunded @102 (A)
6.200%, 11/15/02 130 137
Idaho State Health Facility
Authority RB, St. Alphonsus
Regional Medical Center Project,
Pre-refunded @102 (A)
6.100%, 12/01/07 100 105
Idaho State Housing & Finance
Authority RB, Single Family
Mortgage, Series H-2, FHA AMT
6.150%, 01/01/28 960 964
Idaho State Housing & Finance
Authority RB, Single Family
Mortgage, Series E-2
4.950%, 07/01/11 365 352
Idaho State Housing & Finance
Authority RB, Single Family
Mortgage, Series I-2, FHA AMT
5.200%, 07/01/20 485 444
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
IDAHO -- (CONTINUED)
Idaho State University RB,
Student Facility Fee, MBIA
4.900%, 04/01/17 $ 500 $ 464
Idaho State University RB,
Student Facility Fee,
Recreation Center
Project, FSA
6.500%, 04/01/15 865 948
Idaho State Water Resource
Board RB, Pooled Loan
Program, Series A
6.200%, 05/01/20 500 503
Jefferson, School District
# 253 GO, MBIA
5.500%, 08/01/15 240 244
Jerome, Lincoln & Gooding GO,
School District # 2, FSA
5.000%, 07/31/12 290 290
Kootenai, School District #273
GO, AMBAC
5.000%, 07/30/17 170 163
Lewis-Clark State College,
College Facilities RB, MBIA
5.200%, 04/01/17 250 245
Madison GO, FSA
5.400%, 08/01/15 420 423
Madison, Memorial Hospital Board
COP, Asset Guaranty
5.000%, 12/01/18 250 227
McCall, Water RB, Parity
Lien, FSA
5.750%, 03/01/07 215 226
5.850%, 03/01/16 500 512
Meridian, Free Library
District GO, FSA
5.000%, 08/01/15 290 283
Nez Perce, Pollution Control RB,
Potlatch Corporation Project
6.000%, 10/01/24 1,000 945
Oneida, School District # 351
GO, MBIA
5.000%, 07/31/15 375 364
Payette, School District # 372
GO, AMBAC
6.250%, 07/30/10 365 407
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
<PAGE>
JULY 31, 2000 (UNAUDITED)
STATEMENT OF NET ASSETS
IDAHO MUNICIPAL BOND FUND (CONCLUDED)
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
IDAHO -- (CONTINUED)
Payette, School District # 372 GO,
Asset Guaranty,
Pre-refunded @ 100 (A)
6.750%, 07/31/03 $ 100 $ 106
Southern Idaho Regional
Solid Waste Project COP LOC
5.450%, 11/01/13 500 506
Teton, School District
# 401 GO, FSA
5.500%, 08/01/10 400 415
Twin Falls & Cassia, Joint
School District
# 418 GO, MBIA
5.450%, 08/01/15 145 146
Twin Falls, School
District # 413
GO, Cl A, AMBAC
5.250%, 07/30/13 400 403
5.250%, 07/30/14 420 422
Twin Falls, School
District # 415
GO, Asset Guaranty
5.500%, 08/01/15 195 195
University of Idaho,
Student Fee
RB, FSA
5.850%, 04/01/11 200 209
University of Idaho, Student
Fee RB, Kibbie & Enroll
Project, Series D, FSA
6.000%, 04/01/26 500 511
University of Idaho, Student Fee
RB, University Commons
Project, MBIA
5.650%, 04/01/22 500 507
--------
28,604
--------
PUERTO RICO -- 6.6%
Puerto Rico Commonwealth Highway
& Transportation Authority
Highway RB, Series Z, FSA
6.250%, 07/01/16 735 823
Puerto Rico Commonwealth
Highway
& Transportation Authority
Highway RB, Series Z, MBIA
6.250%, 07/01/13 400 446
--------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway
& Transportation Authority
Highway RB, Series Y, FSA
6.250%, 07/01/14 $ 500 $ 558
Puerto Rico Commonwealth
Highway & Transportation
Authority Highway
RB, Series Y, MBIA
5.500%, 07/01/26 250 249
--------
2,076
--------
TOTAL MUNICIPAL BONDS
(Cost $31,352) 30,680
--------
CASH EQUIVALENT -- 0.9%
SEI Tax-Exempt Trust
Institutional
Tax-Free Fund 294,979 295
--------
TOTAL CASH EQUIVALENT
(Cost $295) 295
--------
TOTAL INVESTMENTS -- 98.8%
(Cost $31,647) 30,975
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.2% 361
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<PAGE>
THE ACHIEVEMENT FUNDS
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 2,106,436 outstanding
shares of beneficial interest $ 21,692
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 793,530 outstanding shares of
beneficial interest 8,480
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 161,458 outstanding shares of
beneficial interest 1,798
Distributions in excess of net
investment income (9)
Accumulated net realized gain on investments 47
Net unrealized depreciation on investments (672)
--------
TOTAL NET ASSETS -- 100.0% $ 31,336
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $10.23
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS A $10.25
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($10.25 / 96%) $10.68
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B $10.26
========
--------------------------------------------------------------------------------
(A) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT -- ALTERNATIVE MINIMUM TAX
COP -- CERTIFICATE OF PARTICIPATION
ETM-- ESCROWED TO MATURITY
FGIC -- FEDERAL GUARANTY INSURANCE COMPANY
FHA -- FEDERAL HOUSING AUTHORITY
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
LOC -- LETTER OF CREDIT
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
TA -- TAX ALLOCATION
--------------------------------------------------------------------------------
MUNICIPAL BOND FUND
--------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS]
General Obligations 7.9%
Revenue Bonds 89.1%
Tax Allocation 0.8%
Cash Equivalent 2.2%
% OF TOTAL PORTFOLIO INVESTMENTS
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 96.8%
ALABAMA -- 0.2%
Alabama State Housing Finance
Authority RB, Collateral Home
Mortgage Project, Series B,
AMT,GNMA/FNMA/FHLMC
6.100%, 10/01/20 $ 100 $ 100
--------
ALASKA -- 6.3%
Alaska State Housing Finance RB,
General Meeting, Series A,
MBIA, GOC
6.100%, 12/01/37 370 372
Alaska State Housing Finance RB,
Housing Development,
Series A, GOC
5.700%, 12/01/29 500 479
Alaska State Housing Finance RB,
Veterans Mortgage Project,
1st Series,
GNMA/FNMA/FHLMC
5.400%, 12/01/23 275 258
Alaska State Student
Loan RB, Series A,
AMBAC, GOC, AMT
5.750%, 07/01/14 400 400
Valdez, Marine Terminal RB, BP
Pipelines Project, Series A
5.850%, 08/01/25 1,000 984
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
JULY 31, 2000 (UNAUDITED)
STATEMENT OF NET ASSETS
MUNICIPAL BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
ALASKA -- (CONTINUED)
Valdez, Marine Terminal RB, BP
Pipelines Project, Series B
5.500%, 10/01/28 $1,000 $ 935
Valdez, Marine Terminal
RB, Mobil Alaska
Pipeline Project
5.750%, 11/01/28 1,000 974
--------
4,402
--------
ARIZONA -- 1.2%
Maricopa, Elementary School
District # 068 GO, School
Improvement Project, AMBAC
5.100%, 07/01/11 500 502
Maricopa, Industrial Development
Authority RB, Catholic Healthcare
West Project, Series A
5.000%, 07/01/16 400 331
--------
833
--------
ARKANSAS -- 0.7%
Independence, Pollution Control RB,
Power & Light Project
6.250%, 01/01/21 500 494
--------
CALIFORNIA -- 3.1%
California State Tri-City Hospital
District RB, Series A, MBIA
5.625%, 02/15/17 500 505
Los Angeles, Wastewater System
RB, Series A, MBIA
5.875%, 06/01/24 160 162
Northern California Power Agency
RB, Public Power Project, AMBAC,
Pre-refunded @ 100 (A)
7.500%, 07/01/21 720 888
Sacramento, Municipal Utility District
RB, Series E, MBIA
5.750%, 05/15/22 130 131
San Francisco, Airport Improvement
RB, United Airlines, ETM
8.000%, 07/01/13 280 336
San Francisco, City & County
RB, Series A, GNMA
7.125%, 10/01/16 120 124
--------
2,146
--------
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
COLORADO -- 3.2%
Colorado State Board of Agriculture
RB, University of Southern
Colorado Sports Project
8.250%, 05/01/03 $ 100 $ 101
Colorado State Educational &
Cultural Facilities
Authority RB, Core
Knowledge Project
7.000%, 11/01/29 200 199
Denver, City & County Airport
RB, Series E, MBIA
5.500%, 11/15/25 500 487
Denver, City & County RB,
The Boston Lofts Project,
Series A, FHA, AMT
5.750%, 10/01/27 500 482
Denver, City & County School
District # 1 GO, FGIC
5.250%, 12/01/17 500 486
Summit, Sports Facilities RB,
Keystone Resorts Project
7.375%, 09/01/10 420 469
--------
2,224
--------
CONNECTICUT -- 1.1%
Connecticut State Health &
Educational Facilities
Authority RB, New Britain
General Hospital, Series B,
AMBAC, GOI
6.000%, 07/01/24 115 117
Connecticut State Health &
Educational Facilities
Authority RB, Trinity
College Project,
Series E, MBIA
5.875%, 07/01/26 155 157
Waterbury, Housing
Authority RB, Section 8
Project, Series A, GNMA
5.850%, 02/01/37 500 494
--------
768
--------
FLORIDA -- 1.6%
Boynton Beach, Multi-Family
Housing RB, Clipper Cove
Apartments
6.450%, 01/01/27 505 521
Florida State Housing
Finance Agency RB, Glen Oaks
Apartment Project,
FNMA, AMT
5.900%, 02/01/30 500 492
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
<PAGE>
THE ACHIEVEMENT FUNDS
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
FLORIDA -- (CONTINUED)
Florida State University Housing
Facility RB, MBIA
5.875%, 05/01/14 $ 100 $ 103
--------
1,116
--------
GEORGIA -- 5.3%
Atlanta, Airport Authority RB,
Series A, FGIC
5.600%, 01/01/30 1,000 987
Atlanta, Water & Wastewater
Authority RB, Series A, FGIC
5.500%, 11/01/22 1,000 990
Fulton, Housing Authority RB,
Multi-Family Housing,
Concorde Place Apartments
Project, Series C,
AMT, Pre-refunded @ 100 (A)
6.900%, 07/01/08 500 564
Georgia State Housing & Finance
Authority RB, Homeownership
Opportunity Program, Series C,
FHA, GOA
6.500%, 12/01/11 265 276
Georgia State Housing & Finance
Authority RB, Single Family
Mortgage, Subseries B2, AMT
5.850%, 12/01/28 485 474
Smyra, Hospital Authority RB,
Ridgeview Institute Project
6.000%, 11/01/28 500 406
--------
3,697
--------
HAWAII -- 0.7%
Hawaii State Housing Finance &
Development RB, Series A,
FNMA, AMT
5.750%, 07/01/30 500 479
--------
IDAHO -- 1.4%
Idaho State Health Facilities
Authority RB, Bannock Regional
Medical Center Project
6.125%, 05/01/25 465 423
Nez Perce, Pollution Control RB,
Potlatch Corporation Project
6.000%, 10/01/24 545 515
--------
938
--------
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
ILLINOIS -- 8.1%
Bryant, Pollution Control RB,
Central Illinois Light Project
5.900%, 08/01/23 $1,000 $ 950
Chicago, Board of Education GO,
School Reform Board,
Series A, FGIC
5.500%, 12/01/26 500 483
Chicago, Multi-Family Housing RB,
Bryne Mawr/Belle Project,
GNMA, AMT
6.125%, 06/01/39 500 507
Illinois State Health Facilities
Authority RB, Holy Cross
Hospital Project, GOH
6.250%, 03/01/04 520 522
Illinois State Housing Development
Authority RB, Multi-Family
Housing, HUD
7.000%, 07/01/17 235 236
Illinois State, Sales Tax RB, Series P
6.500%, 06/15/22 1,255 1,368
Jackson and Williamson GO, AMBAC
6.250%, 12/01/15 500 531
Rockford, Mortgage Authority RB,
Faust Landmark Apartments,
Series A, MBIA, AMT, HUD
6.750%, 01/01/18 1,000 1,059
--------
5,656
--------
INDIANA -- 1.7%
Hammod, Multi-School Building RB,
First Mortgage Project,
State Aid Withholding
6.125%, 07/15/19 720 741
Indiana State Toll Financial
Authority RB
6.000%, 07/01/13 25 25
Indianapolis, Local Public Improvement
RB, Series B
6.000%, 01/10/20 290 306
Petersburg, Pollution Control RB,
Indianapolis Power & Light Project
6.625%, 12/01/24 105 107
--------
1,179
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
25
<PAGE>
JULY 31, 2000 (UNAUDITED)
STATEMENT OF NET ASSETS
MUNICIPAL BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
IOWA -- 2.4%
Iowa City, Sewer RB, MBIA
5.750%, 07/01/21 $1,000 $ 1,006
Iowa State Finance
Authority RB,
Series F, GNMA/FNMA
5.700%, 01/01/27 475 464
Iowa State Hospital
Facility RB, Sisters
of Mercy Health Project,
Series N, FSA
6.250%, 02/15/22 200 204
--------
1,674
--------
KENTUCKY -- 0.6%
Kentucky State Economic
Development Finance RB,
Appalachian Hospital System
5.875%, 10/01/22 500 338
University of Louisville,
Consolidated Educational
Building, School Board
Guaranty RB, Series H
5.875%, 05/01/11 100 103
--------
441
--------
LOUISIANA -- 1.3%
Louisiana State, Stadium &
Exposition District RB,
Series B, FGIC
5.000%, 07/01/26 1,000 890
--------
MAINE -- 1.4%
Maine State Housing
Authority RB,
Series D2, AMT
5.900%, 11/15/25 1,000 984
--------
MASSACHUSETTS -- 0.9%
Massachusetts State Health &
Education Authority RB,
Melrose-Wakefield Hospital,
Series B, GOH, ETM
5.875%, 07/01/18 200 208
Massachusetts State Water
Pollution Authority RB,
MWRA Project, Subseries A
6.000%, 08/01/23 400 410
--------
618
--------
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
MINNESOTA -- 0.7%
Minneapolis & St. Paul, Housing &
Redevelopment Authority RB,
Group Health Plan Project
6.900%, 10/15/22 $ 500 $ 503
--------
MISSOURI -- 0.9%
Boone, Public Water Supply RB,
District # 07
5.500%, 05/01/29 500 450
Springfield, Public Building
Leasehold RB, Parks Department
Improvement Project, FSA
5.900%, 11/01/14 200 209
--------
659
--------
NEBRASKA -- 0.2%
Lincoln-Lancaster,
Public Building
Commission RB,
Tax Supported
Lease Rental, GOC
6.000%, 10/15/26 150 153
--------
NEVADA -- 0.7%
Nevada State Housing
Division RB, Single
Family Program,
Series C-1, FHA
6.500%, 10/01/16 180 185
Nevada State Housing
Division RB, Multi-Unit
Housing, Saratoga Palms,
AMT, FNMA
6.250%, 10/01/16 280 286
--------
471
--------
NEW HAMPSHIRE -- 1.5%
New Hampshire State Higher
Educational & Health
Facilities Authority RB,
Androscoggin Valley Hospital
5.800%, 11/01/27 1,170 1,052
--------
NEW JERSEY -- 0.2%
New Jersey State Health
Care Facility
Financing Authority RB,
Raritan Bay Center
7.250%, 07/01/27 140 124
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
THE ACHIEVEMENT FUNDS
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
NEW MEXICO -- 1.1%
Carlsbad, Multi-Family
Housing RB,
Colonial Hillcrest
7.375%, 08/01/27 $ 375 368
Southeastern New Mexico
Affordable Housing RB,
Casa Hermosa Apartments
7.250%, 12/01/27 430 399
--------
767
--------
NEW YORK -- 5.2%
New York State Dormitory
Authority RB, Menorah
Campus, FHA
6.100%, 02/01/37 1,000 1,006
New York State Local
Government Assistance RB,
Series A, GOC
6.000%, 04/01/24 280 286
New York State Medical
Care Facilities
RB, Series E, MBIA,
Pre-refunded @ 102 (A)
6.500%, 08/15/04 100 109
New York State Metropolitan
Transportation Authority RB,
Series C1
5.625%, 07/01/27 1,000 971
New York State Unrefunded
Balance GO, Series E
6.000%, 08/01/26 270 274
Newark-Wayne, Community
Hospital RB, Series A, GOH
7.600%, 09/01/15 485 493
United Nations Development RB,
Series B, GOC
5.600%, 07/01/26 500 482
--------
3,621
--------
NORTH CAROLINA -- 3.3%
North Carolina State Eastern
Municipal Power Agency RB,
Series A, ETM
4.000%, 01/01/18 375 313
North Carolina State
Eastern Municipal
Power Agency RB, Series A,
Pre-refunded @ 100 (A)
6.000%, 01/01/22 1,000 1,059
North Carolina State
Medical Care
Commission RB, Firsthealth
of the Carolinas
4.750%, 10/01/26 500 414
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
NORTH CAROLINA -- (CONTINUED)
North Carolina State Municipal
Power Agency RB, Series B
6.000%, 01/01/20 $ 500 $ 487
--------
2,273
--------
NORTH DAKOTA -- 1.2%
Fargo, Multi-Family Housing RB
7.125%, 02/01/26 255 237
North Dakota State
Housing Finance
Agency RB,
Home Mortgage,
Series C, AMT
5.950%, 07/01/17 260 262
6.100%, 07/01/28 335 335
--------
834
--------
OHIO -- 4.5%
Butler, Hospital Facilities RB,
Middletown Hospital
5.000%, 11/15/28 500 398
Erie, Franciscan Service RB,
Providence Hospital
6.000%, 01/01/13 1,000 986
Johnstown, Waterworks
System RB
6.000%, 12/01/17 250 242
Mason, Tax Increment
Financing Authority,
J. W. Harris
Development Ltd.
Project, LOC
5.300%, 12/01/18 600 541
Montgomery, Special
Assessment GO, Montgomery
Woods Project
6.000%, 12/01/17 76 77
Oak Hills, Local School
District GO,
Series A
5.700%, 12/01/25 500 495
Perrysburg, School
District GO, Exempt
Village School District
5.350%, 12/01/25 400 378
--------
3,117
--------
OREGON -- 1.4%
Lane, School District # 52,
School Board Guaranty GO
5.625%, 06/15/20 500 501
Oregon State Economic
Development RB, Pacific
Corporation Project,
Series 183, AMT
5.700%, 12/01/25 500 442
--------
943
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
27
<PAGE>
JULY 31, 2000 (UNAUDITED)
STATEMENT OF NET ASSETS
MUNICIPAL BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
PENNSYLVANIA -- 7.6%
Allegheny, Hospital
Development Authority RB,
St. Francis Medical
Center Project
5.750%, 05/15/17 $ 500 $ 413
Allentown, Hospital
Authority RB, Sacred Heart
Hospital of Allentown
6.750%, 11/15/14 500 493
Dauphin, General Authority
Office RB, Office &
Packaging Project, Series A
6.000%, 01/15/25 500 446
Delaware, Hospital
Authority RB, Crozer-Chester
Medical Center
6.000%, 12/15/20 500 431
Pennsylvania State GO
9.000%, 10/01/00 100 101
Pennsylvania State Housing
Finance Agency RB,
Single Family Mortgage,
Series 39B, AMT
6.875%, 10/01/24 750 778
Pennsylvania State Housing
Finance Agency RB, Single
Family Mortgage,
Series 59A, GOA, AMT
5.800%, 10/01/29 1,250 1,214
Scranton-Lackawanna, Health &
Welfare Authority RB, Moses
Taylor Hospital Project
6.250%, 07/01/20 500 431
Warren, Hospital Authority RB,
Warren General
Hospital Project,
Series A, GOH
6.900%, 04/01/11 500 504
Washington, Hospital
Authority RB, Canonsburg
General Hospital Project,
Pre-refunded @ 102 (A)
7.350%, 06/01/03 500 499
--------
5,310
--------
RHODE ISLAND -- 2.1%
Rhode Island Depositors Economic
Protection Corporation, Special
Obligation RB, Series A, ETM
6.375%, 08/01/22 325 357
Rhode Island State, Convention
Center Authority RB,
Series A, AMBAC
5.750%, 05/15/20 150 151
Rhode Island State Housing &
Mortgage Finance RB,
Series 23, AMT
5.950%, 04/01/29 1,000 986
--------
1,494
--------
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
SOUTH CAROLINA -- 1.5%
South Carolina State
Connector 2000
Association RB,
Toll Road Project, (B)
0.000%, 01/01/31 $ 500 $ 49
University of South
Carolina RB, MBIA
5.750%, 06/01/26 1,000 1,003
--------
1,052
--------
SOUTH DAKOTA -- 0.7%
South Dakota State Health &
Education Facilities RB,
Huron Regional
Medical Center
7.250%, 04/01/20 500 508
--------
TENNESSEE-- 0.7%
Nashville & Davidson
Counties, Health & Education
Facility RB, Open Arms
Development Center
5.000%, 08/01/12 500 474
--------
TEXAS -- 3.4%
Beaumont, Multi-Family
Housing RB, Park Shadows
Project, FNMA
6.450%, 06/15/22 500 506
Carroll, Independent School
District GO, PSFG
6.750%, 08/15/20 325 371
Denison, Hospital Authority RB,
Texoma Medical Center Project
6.125%, 08/15/17 700 586
Harris County, Industrial
Development RB,
Gatx Terminals Project
6.950%, 02/01/22 500 516
Socorro, Independent
School District GO
5.750%, 02/15/21 200 210
Texarkana, Health
Facilities RB, Wadley
Regional Medical Center,
Series B, MBIA
6.000%, 10/01/17 160 168
--------
2,357
--------
UTAH -- 3.5%
Provo City, Housing
Authority RB, Lookout
Pointe Apartments, GNMA
5.800%, 07/20/22 500 492
Salt Lake City, Metropolitan
Water Division RB, FGIC
4.100%, 08/01/04 275 247
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
<PAGE>
THE ACHIEVEMENT FUNDS
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
UTAH -- (CONTINUED)
Salt Lake County, College
Resources RB, Westminster
College Project
5.750%, 10/01/27 $ 410 $ 383
Utah State Building Ownership
Authority Lease RB, Student
Facilities MasterLease,
Series C, FSA
5.500%, 05/15/19 250 250
Utah State Housing Finance
Agency RB, Single Family
Mortgage, FHA
6.800%, 01/01/12 75 78
Weber County, Municipal
Building Authority RB, MBIA
5.750%, 12/15/19 1,000 1,004
--------
2,454
--------
VERMONT -- 1.9%
Vermont State Housing
Finance Agency
RB, Series 9, MBIA, AMT
6.000%, 05/01/37 365 364
Vermont State Student
Assistance Financing RB,
Series B, FSA, AMT
6.700%, 12/15/12 900 946
--------
1,310
--------
VIRGINIA -- 1.4%
Chesapeake Bay Bridge and Tunnel
Commission RB, General
Resolution, MBIA
5.500%, 07/01/25 1,000 995
--------
WASHINGTON -- 5.6%
Clark County, School
District # 98
GO, MBIA
6.150%, 12/01/15 500 528
King County GO, MBIA
6.125%, 01/01/33 110 112
Pilchuck, State Development RB,
Tramco Project, AMT
6.000%, 08/01/23 820 781
Seattle, Low Income Housing
Assistance Authority RB,
Kin On Project, GNMA
7.400%, 11/20/36 1,000 1,111
Seattle, Water Systems RB,
Series B, FGIC
6.000%, 07/01/29 500 509
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
Snohomish County, Public
Utility RB, District
# 001, FGIC
6.000%, 01/01/18 $ 220 $ 223
Stevens County, Water
Power RB,
Kettle Project
6.000%, 12/01/23 110 105
Washington State GO,
Series B & At-7
6.400%, 06/01/17 250 276
Washington State Housing
Finance RB, Seattle
University Auxiliary
Services Project, LOC
5.300%, 07/01/31 250 226
--------
3,871
--------
WEST VIRGINIA -- 0.2%
West Virginia State Hospital
Financing Authority RB,
Fairmont General Hospital, GOH
6.750%, 03/01/14 140 138
--------
WISCONSIN -- 2.5%
Wisconsin State GO,
Series D, AMT
5.800%, 05/01/20 145 145
Wisconsin State Health &
Education Facilities RB,
Franciscan Skemp
Medical Center
6.125%, 11/15/15 1,000 1,034
Wisconsin State Housing &
Economic Development RB,
Series A, GOA
6.000%, 09/01/15 550 558
--------
1,737
--------
WYOMING -- 3.6%
Jackson, National Rural
Utilities RB, Lower Valley
Power & Light,
Series B, AMT
5.875%, 05/01/26 500 488
Teton County, Hospital
District RB
5.800%, 12/01/17 600 593
Wyoming State Community
Development Authority RB,
Series 4, AMT
5.850%, 06/01/28 420 409
Wyoming State Community
Development Authority RB,
Series A, FHA
6.000%, 06/01/23 1,000 1,003
--------
2,493
--------
TOTAL MUNICIPAL BONDS
(Cost $70,331) 67,349
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
29
<PAGE>
JULY 31, 2000 (UNAUDITED)
STATEMENT OF NET ASSETS
MUNICIPAL BOND FUND (CONCLUDED)
--------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
CASH EQUIVALENT -- 2.2%
SEI Tax-Exempt Trust
Institutional
Tax-Free Fund 1,516,784 $ 1,517
--------
TOTAL CASH EQUIVALENT
(Cost $1,517) 1,517
--------
TOTAL INVESTMENTS -- 99.0%
(Cost $71,848) 68,866
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.0% 707
--------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 6,576,987 outstanding
shares of beneficial interest 66,254
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 464,212 outstanding shares of
beneficial interest 4,691
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 221,154 outstanding shares of
beneficial interest 2,324
Accumulated net realized loss on investments (714)
Net unrealized depreciation on investments (2,982)
--------
TOTAL NET ASSETS -- 100.0% $ 69,573
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $9.58
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS A $9.58
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($9.58 / 96%) $9.98
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B $9.58
========
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(A) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
(B) ZERO COUPON SECURITY
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
ETM -- ESCROWED TO MATURITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA -- FINANCIAL SECURITY ASSURANCE
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
GOA -- GENERAL OBLIGATION OF AUTHORITY
GOC -- GENERAL OBLIGATION OF CORPORATION
GOH -- GENERAL OBLIGATION OF HOSPITAL
GOI -- GENERAL OBLIGATION OF INSTITUTION
HUD -- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
LTD.-- LIMITED
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
JULY 31, 2000 (UNAUDITED) THE ACHIEVEMENT FUNDS
STATEMENT OF ASSETS AND LIABILITIES (000)
--------------------------------------------------------------------------------
SHORT
TERM
BOND
FUND
=======
ASSETS:
Investments (Cost $28,596) $28,170
Cash 988
Accrued Income 437
Capital Shares Sold 311
Other Receivables 18
Other Assets 47
-------
Total Assets 29,971
-------
LIABILITIES:
Income Distribution Payable 135
Investment Securities Purchased 1,014
Capital Shares Redeemed 9
Accrued Expenses 83
Other Payables 18
-------
Total Liabilities 1,259
-------
Net Assets $28,712
=======
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 2,905,483 outstanding
shares of beneficial interest 31,495
Portfolio Shares of Retail Class A
(unlimited authorization -- no
par value) based on 18,569
outstanding shares of beneficial
interest 188
Accumulated Net Realized Loss
on Investments (2,545)
Net Unrealized Depreciation of
Investments (426)
-------
Total Net Assets $28,712
=======
Net Asset Value, Offering and
Redemption Price Per Share --
Institutional Class $ 9.82
=======
Net Asset Value and Redemption
Price Per Share -- Retail Class A $ 9.81
=======
Maximum Offering Price Per Share --
Retail Class A ($9.81 / 98.5%) $ 9.96
=======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
32
<PAGE>
FOR THE SIX MONTH PERIOD ENDED JULY 31, 2000 (UNAUDITED) THE ACHIEVEMENT FUNDS
STATEMENTS OF OPERATIONS (000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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 $ 1,185 $ 594 $ -- $ -- $ -- $ --
Interest Income 166 2,275 5,274 930 855 2,084
------- ------- ------- ------ ------- -------
Total Income 1,351 2,869 5,274 930 855 2,084
------- ------- ------- ------ ------- -------
EXPENSES:
Investment Advisory Fees 1,170 807 471 89 94 207
Less: Waiver of Investment
Advisory Fees (198) (171) (145) (53) (8) (69)
Administrative Fees 316 218 157 30 31 69
Less: Waiver of Administrative Fees -- -- -- -- (36) --
Custodian/Transfer Agent Fees 29 29 28 24 24 25
Professional Fees 25 27 18 3 4 7
Pricing Fees 6 4 4 1 1 2
Registration & Filing Fees 40 37 29 8 2 7
Printing Fees 25 22 19 7 4 5
Trustee Fees 9 7 7 2 1 4
Distribution Fees - Retail A 17 5 2 -- 10 6
Distribution Service Fees - Retail B 15 10 -- -- 8 9
Interest and Other Expenses 1 1 1 -- -- --
Amortization of Deferred
Organizational Costs -- -- -- -- -- 2
------- ------- ------- ------ ------- -------
Total Expenses 1,455 996 591 111 135 274
------- ------- ------- ------ ------- -------
Net Investment Income (Loss) (104) 1,873 4,683 819 720 1,810
------- ------- ------- ------ ------- -------
Net Realized Gain (Loss) on
Investments 13,164 11,547 (542) (84) (24) (498)
Net Change in Unrealized
Appreciation of Investments 11,845 1,049 2,600 213 1,298 3,351
------- ------- ------- ------ ------- -------
Net Realized and Unrealized Gain
on Investments 25,009 12,596 2,058 129 1,274 2,853
------- ------- ------- ------ ------- -------
Increase in Net Assets Resulting
from Operations $24,905 $14,469 $ 6,741 $ 948 $ 1,994 $ 4,663
======= ======= ======= ====== ======= =======
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
33
<PAGE>
FOR THE SIX MONTH PERIOD ENDED JULY 31, 2000 (UNAUDITED) AND THE YEAR ENDED
JANUARY 31, 2000 THE ACHIEVEMENT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY BALANCED
FUND FUND
======================= =====================
2/1/00 2/1/99 2/1/00 2/1/99
TO TO TO TO
7/31/00 1/31/00 7/31/00 1/31/00
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) $ (104) $ (52) $ 1,873 $ 4,031
Net Realized Gain (Loss) on Investments 13,164 34,174 11,547 16,943
Net Change in Unrealized
Appreciation (Depreciation) of Investments 11,845 (5,477) 1,049 (7,944)
-------- -------- -------- --------
Increase (Decrease) in Net Assets
Resulting From Operations 24,905 28,645 14,469 13,030
-------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class -- -- (2,090) (3,893)
Retail Class A -- -- (33) (66)
Retail Class B -- -- (10) (15)
Capital Gains:
Institutional Class -- (22,333) -- (10,917)
Retail Class A -- (1,024) -- (209)
Retail Class B -- (223) -- (107)
-------- -------- -------- --------
Total Distributions -- (23,580) (2,133) (15,207)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 22,553 53,201 3,461 10,018
Reinvestment in Lieu of Cash Distributions -- 6,462 2,084 14,758
Cost of Shares Redeemed (21,521) (52,486) (21,538) (24,348)
-------- -------- -------- --------
Total Institutional Class Transactions 1,032 7,177 (15,993) 428
-------- -------- -------- --------
Retail Class A:
Proceeds from Shares Issued 292 1,995 114 561
Reinvestment in Lieu of Cash Distributions -- 1,018 32 270
Cost of Shares Redeemed (1,089) (2,327) (890) (1,086)
-------- -------- -------- --------
Total Retail Class A Transactions (797) 686 (744) (255)
-------- -------- -------- --------
Retail Class B:
Proceeds from Shares Issued 214 1,161 29 865
Reinvestment in Lieu of Cash Distributions -- 204 9 118
Cost of Shares Redeemed (420) (615) (191) (391)
-------- -------- -------- --------
Total Retail Class B Transactions (206) 750 (153) 592
-------- -------- -------- --------
Net Increase (Decrease) in Net
Assets from Share Transactions 29 8,613 (16,890) 765
-------- -------- -------- --------
Total Increase (Decrease) in Net Assets 24,934 13,678 (4,554) (1,412)
NET ASSETS:
Beginning of Period 298,324 284,646 219,347 220,759
-------- -------- -------- --------
End of Period $323,258 $298,324 $214,793 $219,347
======== ======== ======== ========
SHARES ISSUED AND REDEEMED:
Institutional Class:
Shares Issued 1,158 2,875 240 711
Shares Issued in Lieu of Cash Distributions -- 346 144 1,042
Shares Redeemed (1,105) (2,815) (1,493) (1,727)
-------- -------- -------- --------
Total Institutional Class Share Transactions 53 406 (1,109) 26
-------- -------- -------- --------
Retail Class A:
Shares Issued 15 110 8 40
Shares Issued in Lieu of Cash Distributions -- 55 2 19
Shares Redeemed (56) (125) (60) (77)
-------- -------- -------- --------
Total Retail Class A Share Transactions (41) 40 (50) (18)
-------- -------- -------- --------
Retail Class B:
Shares Issued 12 64 2 62
Shares Issued in Lieu of Cash Distributions -- 11 1 8
Shares Redeemed (22) (33) (13) (28)
-------- -------- -------- --------
Total Retail Class B Share Transactions (10) 42 (10) 42
-------- -------- -------- --------
Net Increase (Decrease) in Share Transactions 2 488 (1,169) 50
======== ======== ======== ========
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
34
<PAGE>
<TABLE>
<CAPTION>
THE ACHIEVEMENT FUNDS
-------------------------------------------------------------------------------------------------------------------
INTERMEDIATE SHORT TERM
TERM BOND FUND BOND FUND
======================= =======================
2/1/00 2/1/99 2/1/00 2/1/99
TO TO TO TO
7/31/00 1/31/00 7/31/00 1/31/00
--------- ---------- --------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) $ 4,683 $ 9,568 $ 819 $ 1,888
Net Realized Gain (Loss) on Investments (542) (686) (84) (96)
Net Change in Unrealized
Appreciation (Depreciation) of Investments 2,600 (13,228) 213 (740)
--------- --------- -------- --------
Increase (Decrease) in Net Assets
Resulting From Operations 6,741 (4,346) 948 1,052
--------- --------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (4,650) (9,489) (814) (1,880)
Retail Class A (33) (79) (5) (8)
Retail Class B -- -- -- --
Capital Gains:
Institutional Class -- -- -- --
Retail Class A -- -- -- --
Retail Class B -- -- -- --
--------- --------- -------- --------
Total Distributions (4,683) (9,568) (819) (1,888)
--------- --------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 8,488 42,116 2,528 9,166
Reinvestment in Lieu of Cash Distributions 739 1,440 541 1,148
Cost of Shares Redeemed (16,331) (38,746) (6,546) (15,554)
--------- --------- -------- --------
Total Institutional Class Transactions (7,104) 4,810 (3,477) (5,240)
--------- --------- -------- --------
Retail Class A:
Proceeds from Shares Issued 60 234 25 15
Reinvestment in Lieu of Cash Distributions 33 78 4 8
Cost of Shares Redeemed (130) (734) (7) (8)
--------- --------- -------- --------
Total Retail Class A Transactions (37) (422) 22 15
--------- --------- -------- --------
Retail Class B:
Proceeds from Shares Issued -- -- -- --
Reinvestment in Lieu of Cash Distributions -- -- -- --
Cost of Shares Redeemed -- -- -- --
--------- --------- -------- --------
Total Retail Class B Transactions -- -- -- --
--------- --------- -------- --------
Net Increase (Decrease) in Net
Assets from Share Transactions (7,141) 4,388 (3,455) (5,225)
--------- --------- -------- --------
Total Increase (Decrease) in Net Assets (5,083) (9,526) (3,326) (6,061)
NET ASSETS:
Beginning of Period 160,762 170,288 32,038 38,099
--------- --------- -------- --------
End of Period $ 155,679 $ 160,762 $ 28,712 $ 32,038
========= ========= ======== ========
SHARES ISSUED AND REDEEMED:
Institutional Class:
Shares Issued 850 4,105 258 926
Shares Issued in Lieu of Cash Distributions 74 141 55 116
Shares Redeemed (1,638) (3,796) (668) (1,571)
--------- --------- -------- --------
Total Institutional Class Share Transactions (714) 450 (355) (529)
--------- --------- -------- --------
Retail Class A:
Shares Issued 6 23 4 1
Shares Issued in Lieu of Cash Distributions 3 8 -- 1
Shares Redeemed (13) (72) (1) (1)
--------- --------- -------- --------
Total Retail Class A Share Transactions (4) (41) 3 1
--------- --------- -------- --------
Retail Class B:
Shares Issued -- -- -- --
Shares Issued in Lieu of Cash Distributions -- -- -- --
Shares Redeemed -- -- -- --
--------- --------- -------- --------
Total Retail Class B Share Transactions -- -- -- --
--------- --------- -------- --------
Net Increase (Decrease) in Share Transactions (718) 409 (352) (528)
========= ========= ======== ========
</TABLE>
<TABLE>
<CAPTION>
IDAHO MUNICIPAL
MUNICIPAL BOND BOND FUND
====================== =====================
2/1/00 2/1/99 2/1/00 2/1/99
TO TO TO TO
7/31/00 1/31/00 7/31/00 1/31/00
-------- -------- -------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income (Loss) $ 720 $ 1,688 $ 1,810 $ 3,726
Net Realized Gain (Loss) on Investments (24) 307 (498) (215)
Net Change in Unrealized
Appreciation (Depreciation) of Investments 1,298 (4,057) 3,351 (8,145)
------- ------- ------- -------
Increase (Decrease) in Net Assets
Resulting From Operations 1,994 (2,062) 4,663 (4,634)
------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class (509) (1,157) (1,649) (3,332)
Retail Class A (186) (456) (116) (308)
Retail Class B (34) (76) (45) (99)
Capital Gains:
Institutional Class -- (175) -- (114)
Retail Class A -- (73) -- (9)
Retail Class B -- (16) -- (4)
------- ------- ------- -------
Total Distributions (729) (1,953) (1,810) (3,866)
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 1,345 4,616 2,294 15,133
Reinvestment in Lieu of Cash Distributions 6 28 96 114
Cost of Shares Redeemed (2,071) (7,530) (5,943) (12,005)
------- ------- ------- -------
Total Institutional Class Transactions (720) (2,886) (3,553) 3,242
------- ------- ------- -------
Retail Class A:
Proceeds from Shares Issued 8 273 54 1,771
Reinvestment in Lieu of Cash Distributions 186 529 115 317
Cost of Shares Redeemed (1,180) (2,593) (725) (3,777)
------- ------- ------- -------
Total Retail Class A Transactions (986) (1,791) (556) (1,689)
------- ------- ------- -------
Retail Class B:
Proceeds from Shares Issued 1 1,187 42 999
Reinvestment in Lieu of Cash Distributions 22 70 34 90
Cost of Shares Redeemed (335) (478) (802) (287)
------- ------- ------- -------
Total Retail Class B Transactions (312) 779 (726) 802
------- ------- ------- -------
Net Increase (Decrease) in Net
Assets from Share Transactions (2,018) (3,898) (4,835) 2,355
------- ------- ------- -------
Total Increase (Decrease) in Net Assets (753) (7,913) (1,982) (6,145)
NET ASSETS:
Beginning of Period 32,089 40,002 71,555 77,700
------- ------- ------- -------
End of Period $31,336 $32,089 $69,573 $71,555
======= ======= ======= =======
SHARES ISSUED AND REDEEMED:
Institutional Class:
Shares Issued 133 441 245 1,543
Shares Issued in Lieu of Cash Distributions 1 2 10 12
Shares Redeemed (206) (737) (633) (1,226)
------- ------- ------- -------
Total Institutional Class Share Transactions (72) (294) (378) 329
------- ------- ------- -------
Retail Class A:
Shares Issued 1 25 6 175
Shares Issued in Lieu of Cash Distributions 18 51 12 32
Shares Redeemed (118) (253) (77) (386)
------- ------- ------- -------
Total Retail Class A Share Transactions (99) (177) (59) (179)
------- ------- ------- -------
Retail Class B:
Shares Issued -- 110 4 103
Shares Issued in Lieu of Cash Distributions 2 7 4 9
Shares Redeemed (34) (47) (87) (29)
------- ------- ------- -------
Total Retail Class B Share Transactions (32) 70 (79) 83
------- ------- ------- -------
Net Increase (Decrease) in Share Transactions (203) (401) (516) 233
======= ======= ======= =======
</TABLE>
35
<PAGE>
FOR THE SIX MONTHS ENDED JULY 31, 2000 (UNAUDITED) AND THE PERIODS
ENDED JANUARY 31,
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period or Year
<TABLE>
<CAPTION>
NET
ASSET NET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET
VALUE, INVESTMENT FROM NET FROM UNREALIZED ASSET VALUE,
BEGINNING INCOME INVESTMENT CAPITAL GAINS END
OF PERIOD (LOSS) INCOME GAINS ON INVESTMENTS OF PERIOD
--------- ---------- ------------- ------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
EQUITY FUND
===================
INSTITUTIONAL CLASS:
For the six months ended
July 31, 2000** $18.34 $ -- $ -- $ -- $1.53 $19.87
For the years ended
January 31, 2000*** 18.03 -- -- (1.51) 1.82 18.34
January 31, 1999 15.34 0.06 (0.07) (0.72) 3.42 18.03
January 31, 1998 14.03 0.10 (0.10) (1.68) 2.99 15.34
January 31, 1997 12.64 0.11 (0.11) (0.94) 2.33 14.03
January 31, 1996 10.24 0.17 (0.17) (0.72) 3.12 12.64
RETAIL CLASS A:
For the six months ended
July 31, 2000** $18.26 $(0.03) $ -- $ -- $1.53 $19.76
For the years ended
January 31, 2000*** 18.01 (0.05) -- (1.51) 1.81 18.26
January 31, 1999 15.34 0.02 (0.03) (0.72) 3.40 18.01
January 31, 1998 14.04 0.06 (0.06) (1.68) 2.98 15.34
January 31, 1997 12.65 0.08 (0.08) (0.94) 2.33 14.04
For the period ended
January 31, 1996(1)** 10.52 0.14 (0.15) (0.72) 2.86 12.65
RETAIL CLASS B:
For the six months ended
July 31, 2000** $18.01 $(0.12) $ -- $ -- $1.53 $19.42
For the year ended
January 31, 2000*** 17.93 (0.18) -- (1.51) 1.77 18.01
For the period ended
January 31, 1999(2)** 17.26 (0.07) (0.01) (0.72) 1.47 17.93
BALANCED FUND
===================
INSTITUTIONAL CLASS:
For the six months ended
July 31, 2000** $13.86 $ 0.13 $(0.14) $ -- $0.81 $14.66
For the years ended
January 31, 2000*** 13.99 0.26 (0.26) (0.74) 0.61 13.86
January 31, 1999 13.10 0.29 (0.29) (0.86) 1.75 13.99
January 31, 1998 12.01 0.32 (0.30) (0.64) 1.71 13.10
January 31, 1997 11.79 0.34 (0.35) (0.78) 1.01 12.01
January 31, 1996 10.20 0.39 (0.39) (0.42) 2.01 11.79
RETAIL CLASS A:
For the six months ended
July 31, 2000** $13.84 $ 0.10 $(0.12) $ -- $0.81 $14.63
For the years ended
January 31, 2000*** 13.97 0.22 (0.22) (0.74) 0.61 13.84
January 31, 1999 13.08 0.25 (0.26) (0.86) 1.76 13.97
January 31, 1998 12.00 0.28 (0.27) (0.64) 1.71 13.08
January 31, 1997 11.78 0.31 (0.32) (0.78) 1.01 12.00
For the period ended
January 31, 1996(1)** 10.34 0.32 (0.31) (0.42) 1.85 11.78
RETAIL CLASS B:
For the six months ended
July 31, 2000** $13.81 $0.05 $(0.07) $ -- $0.81 $14.60
For the year ended
January 31, 2000*** 13.95 0.12 (0.12) (0.74) 0.60 13.81
For the period ended
January 31, 1999(2)** 14.09 0.11 (0.12) (0.87) 0.74 13.95
RATIO OF
RATIO NET INCOME
OF EXPENSES RATIO OF (LOSS)
NET RATIO TO AVERAGE NET INCOME TO AVERAGE
ASSETS, END OF EXPENSES NET ASSETS (LOSS) NET ASSETS PORTFOLIO
TOTAL OF PERIOD TO AVERAGE (EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
RETURN+ (000) NET ASSETS WAIVERS) NET ASSETS WAIVERS) RATE
------- ----------- ----------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
EQUITY FUND
===================
INSTITUTIONAL CLASS:
For the six months ended
July 31, 2000** 8.34%* $307,053 0.90% 1.03% (0.04)% (0.17)% 11.09%
For the years ended
January 31, 2000*** 10.06 282,407 0.90 1.03 -- (0.13) 40.22
January 31, 1999 24.06 270,397 0.90 1.06 0.36 (0.20) 74.99
January 31, 1998 22.14 195,500 0.90 1.00 0.63 0.53 36.68
January 31, 1997 20.00 177,234 0.90 1.07 0.81 0.64 97.14
January 31, 1996 32.55 150,957 0.90 1.14 1.43 1.19 103.85
RETAIL CLASS A:
For the six months ended
July 31, 2000** 8.21%* $ 13,218 1.15% 1.28% (0.29)% (0.42)% 11.09%
For the years ended
January 31, 2000*** 9.73 12,959 1.15 1.28 (0.25) (0.38) 40.22
January 31, 1999 23.64 12,064 1.15 1.31 0.12 (0.04) 74.99
January 31, 1998 21.78 9,756 1.15 1.28 0.33 0.20 36.68
January 31, 1997 19.72 4,099 1.15 1.31 0.52 0.36 97.14
For the period ended
January 31, 1996(1)** 32.34* 1,769 1.15 1.37 0.99 0.77 103.85
RETAIL CLASS B:
For the six months ended
July 31, 2000** 7.83%* $ 2,987 1.90% 2.03% (1.04)% (1.17)% 11.09%
For the year ended
January 31, 2000*** 8.82 2,958 1.90 2.03 (1.00) (1.13) 40.22
For the period ended
January 31, 1999(2)** 10.97* 2,185 1.90 2.10 (0.85) (1.05) 74.99
BALANCED FUND
===================
INSTITUTIONAL CLASS:
For the six months ended
July 31, 2000** 6.80%* $209,242 0.90% 1.06% 1.73% 1.57% 13.47%
For the years ended
January 31, 2000*** 6.15 213,251 0.90 1.05 1.84 1.69 33.27
January 31, 1999 16.75 214,939 0.90 1.05 2.14 1.99 54.88
January 31, 1998 17.28 175,751 0.90 1.02 2.49 2.37 30.91
January 31, 1997 12.03 156,315 0.90 1.07 2.90 2.73 68.11
January 31, 1996 24.15 147,357 0.90 1.14 3.48 3.24 59.74
RETAIL CLASS A:
For the six months ended
July 31, 2000** 6.61%* $ 3,542 1.15% 1.31% 1.48% 1.32% 13.47%
For the years ended
January 31, 2000*** 5.91 4,047 1.15 1.30 1.59 1.44 33.27
January 31, 1999 16.50 4,339 1.15 1.30 1.90 1.75 54.88
January 31, 1998 16.92 3,869 1.15 1.27 2.23 2.11 30.91
January 31, 1997 11.81 2,875 1.15 1.32 2.64 2.47 68.11
For the period ended
January 31, 1996(1)** 23.88* 1,664 1.15 1.38 3.06 2.83 59.74
RETAIL CLASS B:
For the six months ended
July 31, 2000** 6.24%* $ 2,009 1.90% 2.06% 0.73% 0.57% 13.47%
For the year ended
January 31, 2000*** 5.07 2,049 1.90 2.05 0.84 0.69 33.27
For the period ended
January 31, 1999(2)** 7.99* 1,481 1.90 2.07 1.00 0.83 54.88
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
36
<PAGE>
THE ACHIEVEMENT FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE,
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD
--------- ---------- ------------- ------------- -------------- ------------
INTERMEDIATE TERM
BOND FUND
================
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C> <C>
July 31, 2000** $ 9.91 $0.30 $(0.30) $ -- $ 0.13 $10.04
For the years ended
January 31, 2000*** 10.77 0.59 (0.59) -- (0.86) 9.91
January 31, 1999 10.63 0.61 (0.61) -- 0.14 10.77
January 31, 1998 10.37 0.62 (0.62) -- 0.26 10.63
January 31, 1997 10.79 0.62 (0.62) -- (0.42) 10.37
January 31, 1996 10.09 0.71 (0.70) -- 0.69 10.79
RETAIL CLASS A:
For the six months ended
July 31, 2000** $ 9.93 $0.28 $(0.28) $ -- $ 0.13 $10.06
For the years ended
January 31, 2000*** 10.79 0.56 (0.57) -- (0.85) 9.93
January 31, 1999 10.66 0.58 (0.59) -- 0.14 10.79
January 31, 1998 10.40 0.60 (0.60) -- 0.26 10.66
January 31, 1997 10.82 0.60 (0.60) -- (0.42) 10.40
For the period ended
January 31, 1996(1)** 10.16 0.56 (0.55) -- 0.65 10.82
SHORT TERM
BOND FUND
================
INSTITUTIONAL CLASS:
For the six months ended
July 31, 2000** $ 9.78 $0.27 $(0.27) $ -- $ 0.04 $ 9.82
For the years ended
January 31, 2000*** 10.02 0.54 (0.54) -- (0.24) 9.78
January 31, 1999 10.05 0.55 (0.55) -- (0.03) 10.02
January 31, 1998 10.01 0.57 (0.57) -- 0.04 10.05
January 31, 1997 10.18 0.60 (0.60) -- (0.17) 10.01
January 31, 1996 10.02 0.67 (0.65) -- 0.14 10.18
RETAIL CLASS A:
For the six months ended
July 31, 2000** $ 9.77 $0.26 $(0.26) -- $ 0.04 $ 9.81
For the years ended
January 31, 2000*** 10.00 0.51 (0.51) -- (0.23) 9.77
January 31, 1999 10.04 0.52 (0.52) -- (0.04) 10.00
January 31, 1998 10.00 0.55 (0.55) -- 0.04 10.04
January 31, 1997 10.18 0.57 (0.58) -- (0.17) 10.00
For the period ended
January 31, 1996(1)** 10.03 0.53 (0.52) -- 0.14 10.18
RATIO
OF EXPENSES
NET RATIO TO AVERAGE RATIO OF
ASSETS, END OF EXPENSES NET ASSETS NET INCOME
TOTAL OF PERIOD TO AVERAGE (EXCLUDING TO AVERAGE
RETURN+ (000) NET ASSETS WAIVERS) NET ASSETS
------- ----------- ----------- ----------- ----------
INTERMEDIATE TERM
BOND FUND
================
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C>
July 31, 2000** 4.35%* $154,503 0.75% 0.93% 5.96%
For the years ended
January 31, 2000*** (2.54) 159,564 0.75 0.93 5.75
January 31, 1999 7.25 168,545 0.75 0.91 5.72
January 31, 1998 8.82 161,742 0.75 0.87 5.99
January 31, 1997 2.06 134,645 0.75 0.95 6.02
January 31, 1996 13.62 115,307 0.75 1.02 6.14
RETAIL CLASS A:
For the six months ended
July 31, 2000** 4.22%* $ 1,176 1.00% 1.18% 5.71%
For the years ended
January 31, 2000*** (2.78) 1,198 1.00 1.18 5.49
January 31, 1999 6.91 1,743 1.00 1.15 5.48
January 31, 1998 8.60 2,776 1.00 1.11 5.75
January 31, 1997 1.80 2,730 1.00 1.18 5.76
For the period ended
January 31, 1996(1)** 13.49* 963 1.00 1.26 5.74
SHORT TERM
BOND FUND
================
INSTITUTIONAL CLASS:
For the six months ended
July 31, 2000** 3.21%* $ 28,530 0.75% 1.11% 5.55%
For the years ended
January 31, 2000*** 3.02 31,879 0.75 1.07 5.41
January 31, 1999 5.33 37,951 0.75 1.01 5.50
January 31, 1998 6.25 50,853 0.75 0.95 5.68
January 31, 1997 4.40 65,328 0.75 0.96 6.00
January 31, 1996 7.80 75,632 0.75 0.99 6.11
RETAIL CLASS A:
For the six months ended
July 31, 2000** 3.09%* $ 182 1.00% 1.36% 5.30%
For the years ended
January 31, 2000*** 2.87 159 1.00 1.32 5.16
January 31, 1999 4.94 148 1.00 1.25 5.25
January 31, 1998 6.04 204 1.00 1.18 5.43
January 31, 1997 4.04 443 1.00 1.20 5.74
For the period ended
January 31, 1996(1)** 7.55* 39 1.00 1.23 5.75
RATIO OF
NET INCOME
TO AVERAGE
NET ASSETS PORTFOLIO
(EXCLUDING TURNOVER
WAIVERS) RATE
----------- ---------
INTERMEDIATE TERM
BOND FUND
================
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C>
July 31, 2000** 5.78% 3.31%
For the years ended
January 31, 2000*** 5.57 21.46
January 31, 1999 5.55 28.03
January 31, 1998 5.87 20.91
January 31, 1997 5.82 21.23
January 31, 1996 5.87 85.16
RETAIL CLASS A:
For the six months ended
July 31, 2000** 5.53% 3.31%
For the years ended
January 31, 2000*** 5.31 21.46
January 31, 1999 5.34 28.03
January 31, 1998 5.64 20.91
January 31, 1997 5.58 21.23
For the period ended
January 31, 1996(1)** 5.48 85.16
SHORT TERM
BOND FUND
================
INSTITUTIONAL CLASS:
For the six months ended
July 31, 2000** 5.19% 15.31%
For the years ended
January 31, 2000*** 5.09 57.49
January 31, 1999 5.24 26.51
January 31, 1998 5.48 48.90
January 31, 1997 5.79 40.80
January 31, 1996 5.87 83.64
RETAIL CLASS A:
For the six months ended
July 31, 2000** 4.94% 15.31%
For the years ended
January 31, 2000*** 4.84 57.49
January 31, 1999 5.00 26.51
January 31, 1998 5.25 48.90
January 31, 1997 5.54 40.80
For the period ended
January 31, 1996(1)** 5.52 83.64
</TABLE>
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
** RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
*** PER SHARE AMOUNTS FOR THE PERIOD ARE BASED ON AVERAGE OUTSTANDING SHARES.
+ RETURNS DO NOT REFLECT ANY SALES LOAD THAT MAY BE APPLICABLE.
(1) COMMENCED OPERATIONS ON MARCH 6, 1995.
(2) 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.
37
<PAGE>
FOR THE SIX MONTHS ENDED JULY 31, 2000 (UNAUDITED) AND THE PERIODS
ENDED JANUARY 31,
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Period or Year
REALIZED
NET AND
ASSET DISTRIBUTIONS DISTRIBUTIONS UNREALIZED
VALUE, NET FROM NET FROM GAINS
BEGINNING INVESTMENT INVESTMENT CAPITAL (LOSSES) ON
OF PERIOD INCOME INCOME GAINS INVESTMENTS
--------- ---------- ------------- -------------- -----------
<S> <C> <C> <C> <C> <C>
IDAHO MUNICIPAL
BOND FUND
===============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 2000** $ 9.82 $0.24 $(0.24) $ -- $ 0.41
For the years ended
January 31, 2000*** 10.91 0.47 (0.47) (0.08) (1.01)
January 31, 1999 10.82 0.47 (0.47) (0.05) 0.14
January 31, 1998 10.41 0.47 (0.47) (0.04) 0.45
January 31, 1997 10.80 0.46 (0.46) (0.06) (0.33)
January 31, 1996 10.13 0.52 (0.51) (0.12) 0.78
RETAIL CLASS A:
For the six months ended
July 31, 2000** $ 9.85 $0.23 $(0.23) $ -- $ 0.40
For the years ended
January 31, 2000*** 10.93 0.44 (0.45) (0.08) (0.99)
January 31, 1999 10.85 0.45 (0.45) (0.05) 0.13
January 31, 1998 10.44 0.45 (0.45) (0.04) 0.45
January 31, 1997 10.83 0.44 (0.44) (0.06) (0.33)
For the period ended
January 31, 1996(1)** 10.21 0.41 (0.40) (0.12) 0.73
RETAIL CLASS B:
For the six months ended
July 31, 2000** $ 9.86 $0.19 $(0.19) $ -- $ 0.40
For the year ended
January 31, 2000*** 10.94 0.37 (0.37) (0.08) (1.00)
For the period ended
January 31, 1999(2)** 10.69 0.27 (0.27) (0.05) 0.30
RATIO
OF EXPENSES
NET NET RATIO TO AVERAGE RATIO OF
ASSET VALUE, ASSETS, END OF EXPENSES NET ASSETS NET INCOME
END TOTAL OF PERIOD TO AVERAGE (EXCLUDING TO AVERAGE
OF PERIOD RETURN+ (000) NET ASSETS WAIVERS) NET ASSETS
------------ ------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
IDAHO MUNICIPAL
BOND FUND
===============
INSTITUTIONAL CLASS:
For the six months ended
July 31, 2000** $10.23 6.67%* $21,543 0.75% 1.03% 4.73%
For the years ended
January 31, 2000*** 9.82 (5.11) 21,396 0.75 1.05 4.51
January 31, 1999 10.91 5.76 26,961 0.75 1.00 4.35
January 31, 1998 10.82 9.06 26,093 0.75 1.10 4.47
January 31, 1997 10.41 1.31 27,487 0.75 1.24 4.40
January 31, 1996 10.80 12.68 25,873 0.75 1.35 4.52
RETAIL CLASS A:
For the six months ended
July 31, 2000** $10.25 6.42%* $ 8,136 1.00% 1.28% 4.48%
For the years ended
January 31, 2000*** 9.85 (5.24) 8,790 1.00 1.30 4.26
January 31, 1999 10.93 5.43 11,695 1.00 1.25 4.10
January 31, 1998 10.85 8.84 9,281 1.00 1.37 4.22
January 31, 1997 10.44 1.05 5,475 1.00 1.47 4.15
For the period ended
January 31, 1996(1)** 10.83 12.60* 3,109 1.00 1.58 4.18
RETAIL CLASS B:
For the six months ended
July 31, 2000** $10.26 6.08%* $ 1,657 1.65% 1.93% 3.83%
For the year ended
January 31, 2000*** 9.86 (5.87) 1,903 1.65 2.05 3.64
For the period ended
January 31, 1999(2)** 10.94 5.37* 1,346 1.75 2.05 3.32
RATIO OF
NET INCOME
TO AVERAGE
NET ASSETS PORTFOLIO
(EXCLUDING TURNOVER
WAIVERS) RATE
----------- ---------
IDAHO MUNICIPAL
BOND FUND
===============
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C>
July 31, 2000** 4.45% 1.62%
For the years ended
January 31, 2000*** 4.21 16.35
January 31, 1999 4.10 12.90
January 31, 1998 4.12 17.64
January 31, 1997 3.91 29.13
January 31, 1996 3.92 58.94
RETAIL CLASS A:
For the six months ended
July 31, 2000** 4.20% 1.62%
For the years ended
January 31, 2000*** 3.96 16.35
January 31, 1999 3.85 12.90
January 31, 1998 3.85 17.64
January 31, 1997 3.68 29.13
For the period ended
January 31, 1996(1)** 3.60 58.94
RETAIL CLASS B:
For the six months ended
July 31, 2000** 3.55% 1.62%
For the year ended
January 31, 2000*** 3.24 16.35
For the period ended
January 31, 1999(2)** 3.02 12.90
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38
<PAGE>
THE ACHIEVEMENT FUNDS
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
REALIZED
NET AND
ASSET DISTRIBUTIONS DISTRIBUTIONS UNREALIZED
VALUE, NET FROM NET FROM GAINS
BEGINNING INVESTMENT INVESTMENT CAPITAL (LOSSES) ON
OF PERIOD INCOME INCOME GAINS INVESTMENTS
--------- ---------- ------------- -------------- -----------
MUNICIPAL
BOND FUND
============
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C>
July 31, 2000** $ 9.20 $0.25 $(0.25) $ -- $0.38
For the years ended
January 31, 2000*** 10.30 0.49 (0.49) (0.02) (1.08)
January 31, 1999 10.38 0.49 (0.49) (0.18) 0.10
January 31, 1998 10.02 0.48 (0.48) (0.12) 0.48
For the period ended
January 31, 1997(3)** 10.00 0.12 (0.12) -- 0.02
RETAIL CLASS A:
For the six months ended
July 31, 2000** $ 9.20 $0.23 $(0.23) $ -- $0.38
For the years ended
January 31, 2000*** 10.29 0.46 (0.47) (0.02) (1.06)
January 31, 1999 10.38 0.47 (0.47) (0.18) 0.09
January 31, 1998 10.01 0.46 (0.46) (0.12) 0.49
For the period ended
January 31, 1997(4)** 10.01 0.15 (0.15) -- --
RETAIL CLASS B:
For the six months ended
July 31, 2000** $ 9.20 $0.20 $(0.20) $ -- $0.38
For the year ended
January 31, 2000*** 10.30 0.40 (0.40) (0.02) (1.08)
For the period ended
January 31, 1999(2)** 10.27 0.30 (0.30) (0.18) 0.21
RATIO
OF EXPENSES
NET NET RATIO TO AVERAGE RATIO OF
ASSET VALUE, ASSETS, END OF EXPENSES NET ASSETS NET INCOME
END TOTAL OF PERIOD TO AVERAGE (EXCLUDING TO AVERAGE
OF PERIOD RETURN+ (000) NET ASSETS WAIVERS) NET ASSETS
------------ ------- ----------- ----------- ----------- ----------
MUNICIPAL
BOND FUND
============
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C> <C> <C> <C> <C>
July 31, 2000** $ 9.58 6.88%* $63,010 0.75% 0.95% 5.28%
For the years ended
January 31, 2000*** 9.20 (5.94) 63,982 0.75 0.93 4.97
January 31, 1999 10.30 5.88 68,239 0.75 0.95 4.79
January 31, 1998 10.38 9.90 63,028 0.75 1.05 4.72
For the period ended
January 31, 1997(3)** 10.02 1.34* 53,067 0.75 1.07 4.58
RETAIL CLASS A:
For the six months ended
July 31, 2000** $ 9.58 6.75%* $ 4,445 1.00% 1.20% 5.03%
For the years ended
January 31, 2000*** 9.20 (6.10) 4,814 1.00 1.18 4.69
January 31, 1999 10.29 5.48 7,226 1.00 1.19 4.53
January 31, 1998 10.38 9.78 9,943 1.00 1.32 4.48
For the period ended
January 31, 1997(4)** 10.01 1.48* 4,895 1.00 1.29 4.35
RETAIL CLASS B:
For the six months ended
July 31, 2000** $ 9.58 6.41%* $ 2,118 1.65% 1.85% 4.38%
For the year ended
January 31, 2000*** 9.20 (6.81) 2,759 1.65 1.93 4.08
For the period ended
January 31, 1999(2)** 10.30 4.87* 2,235 1.75 1.98 3.84
RATIO OF
NET INCOME
TO AVERAGE
NET ASSETS PORTFOLIO
(EXCLUDING TURNOVER
WAIVERS) RATE
---------- ---------
MUNICIPAL
BOND FUND
============
INSTITUTIONAL CLASS:
For the six months ended
<S> <C> <C>
July 31, 2000** 5.08% 4.42%
For the years ended
January 31, 2000*** 4.79 15.96
January 31, 1999 4.59 46.00
January 31, 1998 4.42 93.18
For the period ended
January 31, 1997(3)** 4.26 19.21
RETAIL CLASS A:
For the six months ended
July 31, 2000** 4.83% 4.42%
For the years ended
January 31, 2000*** 4.51 15.96
January 31, 1999 4.34 46.00
January 31, 1998 4.16 93.18
For the period ended
January 31, 1997(4)** 4.06 19.21
RETAIL CLASS B:
For the six months ended
July 31, 2000** 4.18% 4.42%
For the year ended
January 31, 2000*** 3.80 15.96
For the period ended
January 31, 1999(2)** 3.61 46.00
</TABLE>
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
** RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
*** PER SHARE AMOUNTS FOR THE PERIOD ARE BASED ON AVERAGE OUTSTANDING SHARES.
+ RETURNS DO NOT REFLECT ANY SALES LOAD THAT MAY BE APPLICABLE.
(1) COMMENCED OPERATIONS ON MARCH 6, 1995.
(2) COMMENCED OPERATIONS ON MAY 8, 1998.
(3) COMMENCED OPERATIONS ON NOVEMBER 1, 1996.
(4) 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.
39
<PAGE>
JULY 31, 2000 (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.
40
<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. This reclassification has no effect on
net assets or net assets per share.
FEDERAL INCOME TAXES -- It is the Trust's intention to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no provision for Federal income taxes is required in the financial
statements.
ORGANIZATION COSTS -- Organizational costs have been capitalized by the Funds
and are being amortized over sixty months commencing with operations. In the
event any of the initial shares of a Fund are redeemed by any holder thereof
during the period that the Fund is amortizing its organizational costs, the
redemption proceeds payable to the holder thereof by the Fund will be reduced by
the unamortized organizational costs in the same ratio as the number of initial
shares being redeemed bears to the number of initial shares outstanding at the
time of redemption.
(CONTINUED)
41
<PAGE>
JULY 31, 2000 (UNAUDITED)
Notes to Financial Statements (continued)
3. INVESTMENT ADVISORY AND CUSTODIAL SERVICES
===============================================================================
Pursuant to an investment advisory agreement dated December 27, 1994, as
amended, investment advisory services are provided to the Funds by First
Security Investment Management, Inc. (the "Adviser"). The Adviser is entitled to
receive an annual fee of 0.74% of the average daily net assets of each of the
Stock Funds and 0.60% of the average daily net assets of each of the Bond Funds.
Such fee is computed daily and paid monthly. During the period ended July 31,
2000, 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, 2000 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
42
<PAGE>
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,
2000, are presented on the next page for the Funds. On July 31, 2000 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, 2000 for each Fund is as follows on the next page:
(CONTINUED)
43
<PAGE>
JULY 31, 2000 (UNAUDITED)
Notes to Financial Statements (continued)
<TABLE>
<CAPTION>
FUND INVESTMENT TRANSACTIONS (000)
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 $ -- $ 7,371 $ 5,040 $ 3,009 $ -- $ --
Other 35,232 2,001 -- 1,014 500 2,987
Sales
U.S. Government
Securities -- 4,973 8,834 1,968 -- --
Other 34,427 989 4,749 4,000 3,067 8,122
Aggregate gross
unrealized gain 120,077 57,188 239 2 290 289
Aggregate gross
unrealized loss (11,792) (7,014) (5,331) (428) (962) (3,271)
-------- ------- -------- -------- ------ --------
Net unrealized
gain (loss) $108,285 $50,174 $ (5,092) $ (426) $ (672) $ (2,982)
======== ======= ======== ======== ======= ========
</TABLE>
44
<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,
2000, the percentage of total value of investments by each revenue source was as
follows:
IDAHO
MUNICIPAL MUNICIPAL
BOND FUND BOND FUND
========== ===========
Cash Equivalents 1% 2%
Education Bonds 14% 6%
General Obligation 45% 9%
Hospital Bonds 10% 20%
Housing Bonds 6% 27%
Public Facility Bonds 5% 4%
Other Revenue Bonds 7% 15%
Transportation Bonds 8% 4%
Utility Bonds 4% 13%
---- ----
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, 2000, 75% and 60% of the total value of the Idaho
Municipal Bond Fund and the Municipal Bond fund, respectively, were insured or
had credit enhancements.
(CONTINUED)
45
<PAGE>
JULY 31, 2000 (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, 2000 are as follows:
<TABLE>
<CAPTION>
IDAHO
MUNICIPAL MUNICIPAL
INTERMEDIATE TERM SHORT TERM BOND BOND
BOND FUND BOND FUND FUND FUND
================ =========== =========== ==========
<S> <C> <C> <C> <C>
AAA 61% 45% 77% 40%
AA+ -- -- -- 11
AA 3 1 10 13
AA- 4 -- 5 5
A+ 5 18 -- 1
A 13 21 -- 3
A- 9 11 -- 9
BBB+ -- -- 4 6
BBB 3 4 4 6
BBB- 1 -- -- 2
Not rated 1 -- -- 4
---- ---- ---- ----
100% 100% 100% 100%
==== ==== ==== ====
</TABLE>
7. LINE OF CREDIT
===============================================================================
Pursuant to a credit agreement dated October 9, 1997, as amended, Morgan
Guaranty Trust Company of New York provides revolving credit loans to the Funds
for short-term or emergency purposes, such as funding shareholder redemptions.
These loans are for the respective benefit of and repayable from the respective
assets of the Funds. The aggregate principal amount over all Funds in the Trust
may not exceed $20,000,000. The aggregate amount of all loans outstanding to an
individual Fund shall not exceed 5% of the total net assets of that Fund. As of
July 31, 2000, none of the Funds had loans outstanding.
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>
[LOG0] (Graphic 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-F-016-06
<PAGE>
[LOGO] (Graphic Omitted)
SEMI-ANNUAL
REPORT TO SHAREHOLDERS
JULY 31
