[ACHIEVEMENT COVER PAGE GRAPHICS OMITTED]
<PAGE>
[ACHIEVEMENT LOGO OMITTED]
TABLE OF CONTENTS
Letter to Shareholders .................................. 1
Fund Objectives ......................................... 3
Performance Highlights .................................. 4
Investment Advisor's Report ............................. 5
Management's Discussion & Analysis ...................... 8
Financial Statements .................................... 21
Notes to Financial Statements ........................... 48
THE
ACHIEVEMENT
FUNDS
JANUARY 31, 2000
Annual Report
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
<PAGE>
Letter to Shareholders
[photo omitted]
FREDERICK A. MORETON, JR. JOHN L. RUDISILL
CHAIRMAN MANAGER
THE ACHIEVEMENT FUNDS ENTERED THE NEW MILLENNIUM BY CELEBRATING THEIR FIVE-YEAR
ANNIVERSARY AND BY COMPLETING YET ANOTHER YEAR OF SOLID PERFORMANCE. WE WISH TO
THANK ALL OF OUR SHAREHOLDERS FOR YOUR ON-GOING SUPPORT OF OUR FUND FAMILY. WE
ARE LIVING IN A TRULY EXCITING TIME IN THE HISTORY OF THE U.S., AS WELL AS,
GLOBAL MARKETS.
THE LAST YEAR SAW A CONTINUATION OF THE "INFORMATION REVOLUTION" WITH THE FOCUS
ON TECHNOLOGY STOCKS AND BOTH REALIZED AND ANTICIPATED E-COMMERCE GROWTH THROUGH
THE INTERNET. LIKE MANY INVESTORS, THE ACHIEVEMENT EQUITY FUND AND BALANCED FUND
HAVE BENEFITED GREATLY FROM THIS TREND, BUT UNLIKE SOME INVESTORS, WE HAVE
CONTINUED TO PRACTICE PRUDENT STOCK AND INDUSTRY SECTOR DIVERSIFICATION. YOUR
BOARD OF TRUSTEES AND OUR INVESTMENT ADVISER, FIRST SECURITY INVESTMENT
MANAGEMENT, INC., BELIEVE THAT A BALANCED APPROACH TO INVESTING CONTINUES TO BE
A VERY WISE LONG-TERM STRATEGY, AS FURTHER EXPLAINED BY STERLING K. JENSON IN
THE ACCOMPANYING INVESTMENT ADVISER'S REPORT. AS A CONSEQUENCE, WE REMAIN
FOCUSED ON BUILDING A SOLID TRACK RECORD OF LONG-TERM PERFORMANCE BEYOND JUST
THE ONE-YEAR, THREE-YEAR OR EVEN FIVE-YEAR MARK.
ANOTHER TREND WE SEE EMERGING IS TOWARDS "DO-IT-YOURSELF" INVESTING IN
INDIVIDUAL STOCKS AND BONDS. THIS TREND MAY BE EXPLAINED IN PART BY THE BOOM IN
TECHNOLOGY STOCKS, COUPLED WITH THE EASE OF INVESTING BY CONSUMERS VIA THE
INTERNET. WHILE THIS TREND MAY CONTINUE FOR SOME TIME, WE BELIEVE THAT THE VALUE
PROVIDED BY MUTUAL FUNDS COMBINED WITH ACTIVE PROFESSIONAL MANAGEMENT WILL IN
THE LONG-TERM ADD INCREMENTAL VALUE TO OUR SHAREHOLDERS. OUR GROUP OF INVESTMENT
PROFESSIONALS ARE UNIQUELY EQUIPPED TO RATIONALLY SIFT THROUGH THE THOUSANDS OF
INVESTMENT OPTIONS NOW AVAILABLE, USING STATE OF THE ART RESEARCH TOOLS, TO
DEVELOP INVESTMENT PORTFOLIOS DESIGNED TO MEET EACH FUNDS STATED OBJECTIVES.
<PAGE>
DURING 1999, WE INTRODUCED THE ACHIEVEMENT FUNDS WEB SITE DESIGNED TO ADDRESS
THE GROWING NEEDS OF THREE PRIMARY GROUPS -- OUR SHAREHOLDERS, PROSPECTIVE
INVESTORS AND THE VARIOUS INVESTMENT PROFESSIONALS WHO WE ROUTINELY WORK WITH IN
SELLING OUR FUNDS. WE HAVE BEEN VERY PLEASED WITH THE FEEDBACK WHICH WE HAVE
RECEIVED AND INVITE YOU TO VISIT OUR SITE AT WWW.ACHIEVEMENTFUNDS.COM. WE PLAN
TO ADD ADDITIONAL FUNCTIONALITY TO THE SITE IN THE COMING 12-18 MONTHS.
WE AT THE ACHIEVEMENT FUNDS LOOK FORWARD TO THE NEW YEAR AND ARE COMMITTED TO
PROVIDING YOU WITH SUPERIOR SHAREHOLDER SERVICES. YOU CAN REACH OUR SHAREHOLDERS
SERVICES PERSONNEL BY CALLING 1 (800) 472-0577 OR CONTACT YOUR FINANCIAL
ADVISER.
/s/ signature omitted
FREDERICK A. MORETON, JR.
CHAIRMAN OF THE BOARD OF TRUSTEES
The Achievement Funds Trust
/s/ signature omitted
JOHN L. RUDISILL
SENIOR VICE PRESIDENT AND MANAGER
Mutual Fund Center
First Security Corporation
MARCH 16, 2000
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>
PERFORMANCE HIGHLIGHTS OF THE FUNDS
FOR THE PERIOD ENDED January 31, 2000
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Total Total Return NAV Share NAV Share
THE ACHIEVEMENT FUNDS Net Assets Annualized Total Return Price Price 30-Day Distributions
(000) Since Inception One Year 1/31/99 1/31/00 SEC Yield Per Share
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EQUITY INSTITUTIONAL $282,407 21.66% 10.06% $18.03 $18.34 0.02% $1.51
FUND RETAIL CLASS A 12,959 21.01 9.73 18.01 18.26 -- 1.51
RETAIL CLASS B 2,958 11.49 8.82 17.93 18.01 -- 1.51
- ---------------------------------------------------------------------------------------------------------------------------
BALANCED INSTITUTIONAL $213,251 15.26% 6.15% $13.99 $13.86 1.87% $1.00
FUND RETAIL CLASS A 4,047 14.67 5.91 13.97 13.84 1.54 0.96
RETAIL CLASS B 2,049 7.56 5.07 13.95 13.81 0.84 0.86
- ---------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE INSTITUTIONAL $159,564 5.90% (2.54)% $10.77 $ 9.91 5.96% $0.59
TERM BOND FUND RETAIL CLASS A 1,198 5.30 (2.78) 10.79 9.93 6.43 0.57
- ---------------------------------------------------------------------------------------------------------------------------
SHORTTERM INSTITUTIONAL $31,879 5.41% 3.02% $10.02 $ 9.78 5.80% $0.54
BOND FUND RETAIL CLASS A 159 5.03 2.87 10.00 9.77 6.14 0.51
- ---------------------------------------------------------------------------------------------------------------------------
IDAHO MUNICIPAL INSTITUTIONAL $21,396 4.82% (5.11)% $10.91 $ 9.82 4.97% $0.55
BOND FUND RETAIL CLASS A 8,790 4.19 (5.24) 10.93 9.85 4.52 0.53
RETAIL CLASS B 1,903 (0.48) (5.87) 10.94 9.86 4.06 0.45
- ---------------------------------------------------------------------------------------------------------------------------
MUNICIPAL INSTITUTIONAL $63,982 3.24% (5.94)% $10.30 $ 9.20 5.64% $0.51
BOND FUND RETAIL CLASS A 4,814 3.08 (6.10) 10.29 9.20 5.17 0.49
RETAIL CLASS B 2,759 (1.32) (6.81) 10.30 9.20 4.73 0.42
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
THE ACHIEVEMENT FUNDS TOTAL RETURN ANNUALIZED SINCE INCEPTION
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity Fund Institutional (12/28/94) 21.66%
Retail Class A (3/6/95) 21.01%
Retail Class B (5/8/98) 11.49%
- ---------------------------------------------------------------------------------------------------------------------
Balanced Fund Institutional (12/28/94) 15.26%
Retail Class A (3/6/95) 14.67%
Retail Class B (5/8/98) 7.56%
- ---------------------------------------------------------------------------------------------------------------------
Intermediate Term Institutional (12/28/94) 5.90%
Bond Fund Retail Class A (3/6/95) 5.30%
- ---------------------------------------------------------------------------------------------------------------------
Short Term Bond Fund Institutional (12/28/94) 5.41%
Retail Class A (3/6/95) 5.03%
- ---------------------------------------------------------------------------------------------------------------------
Idaho Municipal Institutional (12/28/94) 4.82%
Bond Fund Retail Class A (3/6/95) 4.19%
Retail Class B (5/8/98) (0.48)%
- ---------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund Institutional (11/1/96) 3.24%
Retail Class A (11/4/96) 3.08%
Retail Class B (5/8/98) (1.32)%
(5) 0 5 10 15 20 25 30
Percent (%)
<FN>
*PERFORMANCE DATA REPRESENT PAST RESULTS AND ARE NO GUARANTEE OF FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL
VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. YIELD
FLUCTUATES AND REFLECTS THE PORTFOLIO'S EARNING POWER, NET OF FUND EXPENSES.
</FN>
</TABLE>
4
<PAGE>
THE ACHIEVEMENT FUNDS
INVESTMENT ADVISER'S REPORT
[PHOTO OMITTED]
STERLING K. JENSON
Stocks, or at least the white-hot technology sector, didn't merely knock the top
out of 1999, they demolished it, finishing on a note of utter invincibility. The
NASDAQ Composite Index, driven by a few hundred-strong technology stocks,
finished calendar year 1999 up an unheard of 85.6%, at a record close. Never
before has a U.S. stock index posted such gains in a single year.
The more-established Dow Jones Industrial Average (Dow) and Standard & Poor's
500 Stock Index (S&P 500) also finished at record levels. A year ago, after an
unprecedented four consecutive years of double-digit gains, most prognosticators
said the two indexes couldn't possibly do it again, but they were wrong.
The name-of-the-game in 1999 was technology stocks, technology stocks, and still
more technology stocks. There was just no way for investors to get enough
technology stocks to keep them happy this year. The word that best describes
what we've seen over the past year is bifurcation. There has been an incredible
discrepancy between the haves and the have-nots in this market. Even as the
NASDAQ soared 85.6%, better than 50% of the stocks in the index declined in
value. The average S&P 500 stock was up less than 9%.
The key to success in the narrowly led stock market of 1999 was the ability to
promise investors a link to the information-technology revolution. Whether
through online shopping, new computer operating systems or simply expanded use
of personal computers or cellular phones, this was almost the only theme that
investors found compelling for most of the year.
A glance at the have-nots of 1999 shows how easy it can be to slip from favor
quickly. Outperformers of past years, including pharmaceuticals and financial
stocks, are among this year's laggards. The only common factor among the losers
is the lack of linkage to the new economy.
Stock markets around the world came roaring back to life in 1999, confounding
many skeptics and even startling the optimists with the vigor and resilience of
the year's broad-based rally. Latin American stocks revved up again with the
biggest winner being Mexico, where a bustling export sector and firmed-up oil
prices pushed the main stock index up 88% in U.S. dollar terms. Europe was led
by Germany and France, whose indices climbed 39% and 51%, respectively. Even
Japan -- the decade's perpetual laggard -- turned in one of the year's best
performances, rising 36%.
Global merger-and-acquisition activity once again broke the records in 1999,
driven by a doubling of European merger volume and a slew of blockbuster
telecommunications deals in the U.S. The total value of announced deals
worldwide last year was an estimated $3.4 trillion, up 36% from 1998.
Finally, the bond market suffered its worst year since 1994 and the second worst
since 1973. Super-safe Treasuries were the worst performers. The total return on
30-year Treasuries was a negative 14.8% after rising 17.1% in 1998. In
hindsight, bonds had nowhere to go but down because of the year-end rally in
1998 sparked by the worldwide currency crisis begun in Russia. In addition, the
three Fed rate hikes, strong economic growth, huge bond supply floated by
corporations, and investors' desires to hold stocks kept bond prices under
pressure all year.
5
<PAGE>
S&P 500 INDEX
[graphic omitted]
plot points are as follows:
S&P 500 Index
1/31/99 1279.64
4/30/99 1335.18
7/31/99 1328.72
10/31/99 1362.93
1/31/00 1394.46
- -----------------------------
STOCK MARKET OUTLOOK FOR 2000
- -----------------------------
Many analysts of the market are convinced there is no way -- really, no way this
time -- stocks can sparkle yet another year. Some say that public expectations
are astronomical with respect to returns from stocks and that this priming over
several years has set us up for a significant bearish experience.
Therefore, I find much more peril in crystal ball gazing this year than at any
other time in the past. I remain positive on the stock market longer term,
recognizing the historically extreme valuations of the present market. I wish to
make several observations before predicting a year-end market level.
A. THE NEW ECONOMY
The economy is changing. That's obvious enough. But whether the sum of the
changes equals a new economy is a hotly debated issue and among the most
profound questions facing economic man as he strides into the new millennium.
Official government statistics don't come close to capturing the surging
significance of small and midsize businesses. The greatest source of wealth now
is knowledge, which is growing exponentially with every new innovation.
Economists fail to realize that technology has replaced capital and labor needs
so radically as to enable entirely new ways of doing business. New levels of
cooperation among firms, made possible by digital communications as well as a
new ethos among entrepreneurs, are tying customers and suppliers together and
reducing vast layers of infrastructure and costs.
The bottom line is that creativity is overtaking
LEHMAN AGGREGATE BOND INDEX
[graphic omitted]
points are as follows:
LEHMAN AGGREGATE BOND INDEX
1/31/99 746.66
4/30/00 739.14
7/31/00 725.61
10/31/00 737.85
1/31/00 731.02
capital as the principal elixir of growth. And creativity, although precious,
shares few of the constraints that limit the range and availability of capital
and physical goods.
B. CORPORATE PROFITS
With one-third of S&P 500 profits coming from non-U.S. sources, improving global
growth will likely resuscitate the top line and generate 13% earnings gains for
the index. Greater earnings breadth will ultimately result in somewhat enhanced
market
6
<PAGE>
THE ACHIVEMENT FUNDS
breadth. Large capitalization companies will continue to be the investments of
choice as they control their destinies and remain the focus of investors.
C. LIQUIDITY
The near perfect conditions for mergers will continue. With Y2K concerns behind
us the pace of combinations may actually accelerate. As Boards of Directors view
mergers as a "strategic tool" to effect change, there will be continued big
deals.
Money market fund assets grew almost 20% this year, surpassing the price growth
of the S&P 500 and outstripping equity mutual fund inflows for the first time
since 1990. The cash preference reflects Fed anxiety, market volatility, and Y2K
fears. As money market fund investors seek greater appreciation and return on
their money, a shift back to equity funds will help propel stock values.
D. FEDERAL POLICY
Trends in Washington are mostly favorable with federal budget surpluses, little
chance for major policy changes in the final year of the Clinton Administration,
and continued talk among presidential candidates concerning tax cuts. Any hopes
investors have that the surplus will be used for debt reduction may well hinge
upon the maintenance of a split government -- with Congress controlled by one
party and the Presidency by the other.
The Fed historically has not been intrusive in an election year. The market will
closely watch policy makers in this election-charged atmosphere in 2000.
E. MARKET FORECAST
Stocks aren't cheap, but that doesn't mean they won't go higher. Given the
innovative "new economy", corporate earnings growth of 13%, contained inflation
with moderately rising interest rates, continued liquidity flows into stocks,
and a favorable policy environment, the Dow has the potential of finishing 2000
at the 13,200 level for a 15% total return. Volatility will remain common place
with potential violent swings in the late summer, early fall period due to
rising rates and a heated political environment.
- --------------------------------------------------------------------------------
SUMMARY
- --------------------------------------------------------------------------------
Following five years of extraordinary returns in the stock market, we at First
Security Investment Management expect 2000 to produce another year of double
digit percentage growth in stock values.
Risks to our forecast are abundant. First and foremost, interest rates must
remain below 7%. If global economic growth creates excessive demand for goods
which percolates into rising inflation, the Fed may react beyond our
expectations, causing bond values to sink further and yield rates to rise above
our forecast. This would cause a swift correction in stock valuations. Second,
campaign rhetoric must not switch to increases in popular spending programs that
could effectively derail the budget surpluses. Plus, the U.S. government must
remain positive on free trade and deregulation. Third, the technology wave of
prosperity must continue, driving costs down, productivity up, and enhancing the
well being of businesses worldwide.
We continue to favor technology stocks as the sector of choice, realizing that
many of the new IPO start-ups will not survive the competition. In all other
sectors, the corporations that adjust to the new ways of e-commerce and take a
leading role in providing goods and services over the Net will thrive in the new
economy. Those that are slow to change will be left in the dust heap of history.
/s/ signature omitted
Sterling K. Jenson, CFA
President and Chief Executive Officer
First Security Investment Management
7
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
OF FUND PERFORMANCE
THE ACHIEVEMENT EQUITY FUND
The Achievement Equity Fund seeks long-term capital appreciation with current
income as a secondary consideration. The Fund should interest investors who seek
capital appreciation over the long-term to satisfy a future goal.
For the fiscal year ending January 31, 2000, the Fund's Institutional Class
provided a total return of 10.06%*; since inception on December 28, 1994, it is
up 171.63%. The Dow Jones Industrial Average and S&P 500 returned 18.78% and
10.35% for the year ending January 31, 2000, respectively.
The Fund invests in medium to large capitalization companies that are seasoned
in their businesses through many economic cycles. Selected stocks show good
growth in earnings yet are priced attractively in relation to those earnings.
Through our proprietary models and analysis we continually search the universe
of stocks for the best managed companies with proven historical records of
earnings growth and future growth potential. We then monitor the companies
continually to be sure expectations are tracking favorably. The Fund may write
covered-call options as a means of increasing the yield of the portfolio and as
a way to provide limited protection against decreases in the market value of
portfolio securities.
The portfolio is diversified with the average weighting per stock at about 2% of
the total. Sector weightings are moderately over- or under-weighted to the S&P
500 Index based on our economic and market outlook. Performance differences
between the Fund and the Index should, therefore, be determined by the sector
weighting differences and individual stock selections.
Earnings growth should be the driving force of the stock market over the next
year. Presently, the Achievement Equity Fund is overweight in sectors that we
feel will provide the earnings engine for the market such as technology,
communications, finance and consumer cyclicals. Underweight sectors include
basic materials, utilities and transportation. The stock market will remain
unsettled until the future directions of the Federal Reserve become more clear.
With one rate hike in early February 2000 and possibly two more on the horizon,
the stock market may underperform near-term. We expect the economy to continue
growing near 4% throughout 2000 and inflation to be well contained at 2.5% or
lower. Once the Fed action appears complete by mid-year the stock market should
finish the year in positive territory.
*The Retail Class A of the Achievement Equity Fund produced a total return of
9.73%. Including the maximum sales charge of 4.50%, the total return of the
Fund's Retail Class A was 4.78%. The Retail Class B of the Achievement Equity
Fund produced a total return of 8.82%. Including the maximum sales charge of
5.00%, the total return of the Fund's Retail Class B was 3.82%.
8
<PAGE>
THE ACHIEVEMENT FUNDS
ACHIEVEMENT EQUITY FUND -- INSTITUTIONAL CLASS
[GRAPHIC OMITTED]
plot points are as follows:
ACHIEVEMENT EQUITY FUND--INSTITUTIONAL CLASS
S&P 500 COMPOSITE INDEX
12/31/94 10,000 10,000
1/31/95 10,291 10,259
1/31/96 13,641 14,221
1/31/97 16,369 17,965
1/31/98 19,993 22,798
1/31/99 24,803 30,210
1/31/00 27,298 33,337
AVERAGE ANNUAL TOTAL RETURN
ANNUALIZED
ONE YEAR ANNUALIZED ANNUALIZED INCEPTION
RETURN THREE YEAR RETURN FIVE YEAR RETURN TO DATE
- --------------------------------------------------------------------------------
INSTITUTIONAL 10.06% 18.59% 21.54% 21.66%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
ACHIEVEMENT EQUITY FUND -- RETAIL CLASS A & B
[graphic omitted]
plot points are as follows:
ACHIEVEMENT EQUITY FUND, RETAIL CLASS A S&P 500 COMPOSITE INDEX
3/31/95 9,550 10,000
1/31/96 11,983 12,961
1/31/97 14,346 16,373
1/31/98 17,470 20,778
1/31/99 21,600 27,533
1/31/00 23,702 30,382
ACHIEVEMENT EQUITY FUND, RETAIL CLASS B S&P 500 COMPOSITE INDEX
5/31/98 10,000 10,000
1/31/99 11,371 11,844
1/31/00 11,974 13,070
AVERAGE ANNUAL TOTAL RETURN
ANNUALIZED ANNUALIZED
ONE YEAR THREE YEAR ANNUALIZED INCEPTION
RETURN RETURN FIVE YEAR RETURN TO DATE
- -----------------------------------------------------------------------------
RETAIL A 9.73% 18.22% N/A 21.01%
RETAIL A WITH LOAD 4.78% 16.42% N/A 19.87%
RETAIL B 8.82% N/A N/A 11.49%
RETAIL B WITH LOAD 3.82% N/A N/A 9.34%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
9
<PAGE>
THE ACHIEVEMENT BALANCED FUND
- --------------------------------------------------------------------------------
The Achievement Balanced Fund seeks both income and capital appreciation
consistent with prudent investment risk. The Fund attempts to "walk the line"
between income and growth by taking advantage of the potential for growth
offered by stocks and income offered by bonds.
For the fiscal year ending January 31, 2000, the Fund's Institutional Class
provided a total return of 6.15%*; since inception on December 28, 1994 it is up
106.20%. The Composite Index which is used as a benchmark showed a return of
6.08% for the year ending January 31, 2000. The Composite Index consists of 60%
S&P 500 Index and 40% Lehman Intermediate Government /Corporate Index.
The stock portion of the Fund may range from 25% to 75% of assets according to
the manager's discretion and outlook for the stock and bond markets. Over the
past year the equity portion has been kept near the upper end of the range,
averaging about 70% of the Fund assets invested in stocks. With the positive
equity markets the Fund has benefitted from this heavy stock weighting,
especially since the bond market suffered it's worst year since 1994 and the
second worst year since 1973.
The Fund invests in medium to large capitalization companies that demonstrate
good growth in earnings yet are priced attractively in relation to those
earnings. Overweighted sectors over the past year include technology,
communication services, consumer cyclicals and finance. The first three sectors
outperformed the market significantly while the financial stocks were a drag to
performance. Looking forward, we still prefer these sectors to basic materials,
transportation, and utilities because of the superior earnings momentum.
The bond market continues to be under pressure in early 2000. The curve actually
peaks in yield at the 5 year maturity area and then declines out to the 30 year
maturities. This "inverted" nature of the yield curve is an anomaly due to U.S.
Treasury buy-backs of longer maturity treasuries. Once it appears that the Fed
has completed it's rate hikes, we will probably concentrate our bond purchases
in that area of the yield curve that provides the greatest total return
possibilities, presumably in the intermediate maturity range of 3 to 7 years.
Certainly, the markets are not in a static environment and are continually
changing. We will actively change both the asset class allocation and individual
security positions in response to any changes in the market or economy.
*The Retail Class A of the Achievement Balanced Fund produced a total return of
5.91% for the period. Including the maximum sales charge of 4.50%, the total
return of the Fund's Retail Class A was 1.13%. The Retail Class B of the
Achievement Balanced Fund produced a total return of 5.07%. Including the
maximum sales charge of 5.00%, the total return of the Fund's Retail Class B
was 0.12%.
10
<PAGE>
THE ACHIEVEMENT FUNDS
[GRAPHIC OMITTED]
plot points are as follows:
ACHIEVEMENT BALANCED FUND -- INSTITUTIONAL CLASS
60/40 S&P 500
ACHIEVEMENT
BALANCED FUND, S&P 500 LEHMAN INTERMEDIATE
INSTITUTIONAL COMPOSITE INDEX COMPOSITE INDEX COV'T/CORP INDEX
12/31/94 10,000 10,000 10,000 10,000
1/31/95 10,231 10,223 10,259 10,168
1/31/96 12,702 13,131 14,221 11,630
1/31/97 14,230 15,345 17,965 12,045
1/31/98 16,689 18,356 22,798 13,113
1/31/99 19,484 22,525 30,210 14,109
1/31/00 20,682 23,894 33,337 14,034
AVERAGE ANNUAL TOTAL RETURN
ANNUALIZED
ONE YEAR THREE YEAR ANNUALIZED ANNUALIZED INCEPTION
RETURN RETURN FIVE YEAR RETURN TO DATE
- --------------------------------------------------------------------------------
INSTITUTIONAL 6.15% 13.28% 15.12% 15.26%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
ACHIEVEMENT BALANCED FUND -- RETAIL CLASS A & B
<TABLE>
<CAPTION>
ACHIEVEMENT BALANCED FUND, COMPOSITE S&P 500 LEHMAN INTERMEDIATE
RETAIL CLASS A INDEX COMPOSITE INDEX GOV'T/CORP INDEX
<S> <C> <C> <C> <C>
3/31/95 9,550 10,000 10,000 10,000
1/31/96 11,377 12,207 12,961 11,142
1/31/97 12,720 14,265 16,373 11,540
1/31/98 14,872 17,063 20,778 12,562
1/31/99 17,326 20,938 27,533 13,517
1/31/00 18,350 22,211 30,382 13,445
ACHIEVEMENT BALANCED FUND, COMPOSITE S&P 500 LEHMAN INTERMEDIATE
RETAIL CLASS B INDEX COMPOSITE INDEX GOV'T/CORP INDEX
5/31/98 10,000 10,000 10,000 10,000
1/31/99 10,996 11,394 11,844 10,604
1/31/00 11,554 12,087 13,070 10,548
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
ANNUALIZED
ONE YEAR ANNUALIZED ANNUALIZED INCEPTION
RETURN THREE YEAR RETURN FIVE YEAR RETURN TO DATE
- --------------------------------------------------------------------------------
RETAIL A 5.91% 12.99% N/A 14.67%
RETAIL A WITH LOAD 1.13% 11.26% N/A 13.60%
RETAIL B 5.07% N/A N/A 7.56%
RETAIL B WITH LOAD 0.12% N/A N/A 5.37%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
11
<PAGE>
THE ACHIEVEMENT INTERMEDIATE TERM BOND FUND
The Achievement Intermediate Term Bond Fund seeks to provide income consistent
with prudent investment risk and maintenance of appropriate liquidity. Fund
volatility is managed based upon economic, capital market, and interest
expectations. The Fund should be considered by investors desiring a relatively
stable income-producing investment with managed volatility and investment grade
securities.
Individual bond purchases are based upon credit quality, liquidity, and
historical and relative yield comparisons. Additionally, bonds are analyzed for
their individual impact on the Fund as a whole in regards to average maturity,
duration, allocation, sector weighting and diversification.
The bond market suffered its worst year of the past five years in 1999 and its
second worst year in 26 years. The total return on 30-year Treasuries was a
negative 15.0% for 12 months through January, 2000. Government securities
generally outperformed comparable maturity corporates over the past year due to
large corporate debt issuance and the anticipation of reduced government debt in
the future.
The total return for the Institutional Class of the Fund for the fiscal year
ended January 31, 2000 was -2.54%*. The comparative Lehman Intermediate
Government/Corporate Bond Index had a total return of -0.53% for the same
period. The Intermediate Term Bond Fund maintained a weighted average maturity
and duration somewhat longer than the index in anticipation of flat to slightly
lower rates. However, bonds lost value during the year due to an increase in
interest rates and longer maturities were more negatively impacted than shorter
maturities. Interest rates along the U.S. Treasury yield curve were up from
1.90% to 2.05% in the 2-to-10 year maturity range. Rates were up in response to
a very strong economy, the fear of a possible increase in the rate of inflation,
and four 25 basis point increases (through February 2, 2000) in the Fed Funds
Target Rate.
Inflation, as measured by the Consumer Price Index, was up 2.7% in 1999. This is
an increase of approximately 1% over the two previous years. Much of the
additional increase was due to higher crude oil prices. Domestic labor markets
remain tight, however, strong productivity has so far been able to offset
greater labor cost pressures.
The combination of action taken by the Federal Reserve, the continued
expectation for low inflation and the anticipated change in the supply of
government debt has resulted in high volatility and an inverted yield curve.
Most debt analysts expect at least one additional Fed Funds rate increase, which
will keep pressure on short maturities. We expect economic growth to slow
somewhat during the year, reducing fears of climbing inflation. This should
allow bonds to perform better this year than last.
*The Retail Class A of the Achievement Intermediate Term Bond Fund produced a
total return of -2.78% for the period. Including the maximum sales charge of
3.50%, the total return of the Fund's Retail Class A was -6.17%.
12
<PAGE>
THE ACHIEVEMENT FUNDS
ACHIEVEMENT INTERMEDIATE TERM BOND FUND -- INSTITUTIONAL CLASS
[Graphic omitted]
plot points follows:
ACHIEVEMENT INTERMEDIATE-TERM LEHMAN INTERMEDIATE
BOND FUND, GOVERNMENT/CORPORATE
INSTITUTIONAL CLASS BOND INDEX
12/31/94 10,000 10,000
1/31/95 10,147 10,168
1/31/96 11,529 11,630
1/31/97 11,767 12,045
1/31/98 12,804 13,113
1/31/99 13,733 14,109
1/31/00 13,384 14,034
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR ANNUALIZED ANNUALIZED ANNUALIZED INCEPTION
RETURN THREE YEAR RETURN FIVE YEAR RETURN TO DATE
- --------------------------------------------------------------------------------
INSTITUTIONAL -2.54% 4.39% 5.69% 5.90%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
ACHIEVEMENT INTERMEDIATE TERM BOND FUND -- RETAIL CLASS A
[graphic omitted]
plot points follows:
ACHIEVEMENT INTERMEDIATE-TERM LEHMAN INTERMEDIATE
BOND FUND, GOVERNMENT/CORPORATE
RETAIL CLASS A BOND INDEX
3/31/95 $ 9,650 $10,000
1/31/96 10,694 11,142
1/31/97 10,886 11,540
1/31/98 11,822 12,562
1/31/99 12,639 13,517
1/31/00 12,288 13,445
AVERAGE ANNUAL TOTAL RETURN
ANNUALIZED
ONE YEAR ANNUALIZED ANNUALIZED INCEPTION
RETURN THREE YEAR RETURN FIVE YEAR RETURN TO DATE
- -----------------------------------------------------------------------------
RETAIL A -2.78% 4.12% N/A 5.30%
RETAIL A WITH LOAD -6.17% 2.88% N/A 4.54%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
13
<PAGE>
THE ACHIEVEMENT SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
The objective of The Achievement Short Term Bond Fund is to preserve principal
value and maintain a high degree of liquidity while providing current income.
The Fund should be considered by investors who seek a high quality, relatively
stable income-producing investment and are willing to accept a moderate degree
of risk.
Individual bond purchases are based upon credit quality, liquidity, and
historical and relative yield comparisons. Additionally, bonds are analyzed for
their individual impact on the Fund as a whole in regards to average maturity,
duration, allocation, sector weighting and diversification.
The bond market suffered its worst year of the past five years in 1999 and its
second worst year in 26 years. The total return on 30-year Treasuries was a
negative 15.0% for 12 months through January, 2000. Government securities
generally outperformed comparable maturity corporates over the past year due to
large corporate debt issuance and the anticipation of reduced government debt in
the future.
The total return for the Institutional Class of the Fund for the fiscal year
ended January 31, 2000 was 3.02%*. The comparative Salomon 1-3 Year Treasury
Government/Corporate Index had a total return of 2.84% for the same period. The
Short Term Bond Fund maintained a weighted average maturity and duration of
between 11/2 and 2 years. Bonds lost value during the year due to an increase in
interest rates and longer maturities were more negatively impacted than shorter
maturities. Interest rates along the U.S. Treasury yield curve were up from
1.90% to 2.05% in the 2-to-10 year maturity range. Rates were up in response to
a very strong economy, the fear of a possible increase in the rate of inflation,
and four 25 basis point increases (through February 2, 2000) in the Fed Funds
Target Rate.
Inflation, as measured by the Consumer Price Index, was up 2.7% in 1999. This is
an increase of approximately 1% over the two previous years. Much of the
additional increase was due to higher crude oil prices. Domestic labor markets
remain tight, however, strong productivity has so far been able to offset
greater labor cost pressures.
The combination of action taken by the Federal Reserve, the continued
expectation for low inflation and the anticipated change in the supply of
government debt has resulted in high volatility and an inverted yield curve.
Most debt analysts expect at least one additional Fed Funds rate increase, which
will keep pressure on short maturities. We expect economic growth to slow
somewhat during the year, reducing fears of climbing inflation. This should
allow bonds to perform better this year than last.
Benefits of holding the Short Term Bond Fund remain the same. Because of the
short term nature of the portfolio volatility should generally be low while at
the same time income generated should be competitive with or superior to money
market yields.
*The Retail Class A of the Achievement Short Term Bond Fund produced a total
return of 2.87% for the period. Including the maximum sales charge of 1.50%,
the total return of the Fund's Retail Class A was 1.35%.
14
<PAGE>
THE ACHIEVEMENT FUNDS
ACHIEVEMENT SHORT TERM BOND FUND -- INSTITUTIONAL CLASS
[GRAPHIC OMITTED]
[PLOT POINTS FOLLOW:]
<TABLE>
<CAPTION>
ACHIEVEMENT SALOMON 1-3 YEAR
SHORT-TERM TREASURY/ SALOMON 1-YEAR
BOND FUND, GOVERNMENT/CORPORATE TREASURY BENCHMARK
INSTITUTIONAL CLASS INDEX ON-THE-RUN
<C> <C> <C> <C>
12/31/94 10,000 10,000 10,000
1/31/95 10,062 10,138 10,101
1/31/96 10,847 11,182 10,879
1/31/97 11,324 11,718 11,478
1/31/98 12,032 12,559 12,198
1/31/99 12,673 13,362 12,881
1/31/00 13,056 13,741 13,385
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR ANNUALIZED ANNUALIZED ANNUALIZED INCEPTION
RETURN THREE YEAR RETURN FIVE YEAR RETURN TO DATE
- --------------------------------------------------------------------------------
INSTITUTIONAL 3.02% 4.86% 5.35% 5.41%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
ACHIEVEMENT SHORT TERM BOND FUND -- RETAIL CLASS A
[GRAPHIC OMITTED]
[PLOT POINTS FOLLOW:]
ACHIEVEMENT SALOMON 1-3 YEAR
SHORT-TERM TREASURY/ SALOMON 1-YEAR
BOND FUND, GOVERNMENT/CORPORATE TREASURY BENCHMARK
RETAIL CLASS A INDEX ON-THE-RUN
<S> <C> <C> <C>
3/31/95 9,850 10,000 10,000
1/31/96 10,460 10,821 10,613
1/31/97 10,883 11,340 11,198
1/31/98 11,540 12,154 11,900
1/31/99 12,110 12,930 12,567
1/31/00 12,458 13,298 13,058
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
ANNUALIZED
ONE YEAR ANNUALIZED ANNUALIZED INCEPTION
RETURN THREE YEAR RETURN FIVE YEAR RETURN TO DATE
- ----------------------------------------------------------------------------
RETAIL A 2.87% 4.61% N/A 5.03%
RETAIL A WITH LOAD 1.35% 4.09% N/A 4.71%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
15
<PAGE>
THE ACHIEVEMENT IDAHO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
The Achievement Idaho Municipal Bond Fund seeks to produce as high a level of
current income exempt from both federal and state income tax as is consistent
with the preservation of capital. It pursues its objective by investing
primarily in municipal obligations from the state of Idaho. Shares of the
institutional class of the Fund produced a total return of -5.11%* for the
fiscal year ending January 31, 2000. In comparison, the Lehman Municipal Bond
Index lost -3.64%.
As of January 31, 2000, the quality of the underlying portfolio of securities is
as follows: AAA 76%; AA 13%; A 2%; and BBB 8%. The Fund may own up to 20% of the
assets in BBB rated securities. The average option-adjusted maturity for the
Fund is 13.4 years, with 19.8% of the option-adjusted maturities falling within
of 1-10 years, 76.4% within 11-20 years, and 3.8% within 21-30. The Fund may
hold up to 20% of the assets in issues subject to the Alternative Minimum Tax
(AMT). Current AMT holdings comprise 4.3% of the portfolio. The Fund is
geographically diversified throughout the state of Idaho, owning 74 securities
from 41 different issuers including Puerto Rico. Several issuers represent more
than 5% of the total portfolio: University of Idaho 8.3%, Puerto Rico Highway
6.3%, Boise ISD 6.2%, Ada & Canyon County SD 5.8%, Canyon County SD 5.5%, Idaho
Housing 5.4%.
In analyzing bonds for the Fund, individual positions are evaluated and screened
by credit quality, underlying structure, liquidity, and valuation. From this
analysis, a decision is then made if the security will enhance the overall
characteristics of the portfolio and will be consistent with the Fund's
prevailing fixed income strategy. The investment strategy is largely based upon
the ongoing assessment of macroeconomic factors affecting the direction of
interest rates and sector spreads. Macroeconomic analysis is then blended with
the aforementioned security-specific factors to produce a portfolio offering
enhanced returns versus established benchmarks over a full interest rate cycle.
As evidenced by recent performance, the municipal bond market has been less than
favorable for investors. While current tax-free yields are at their highest
levels in several years, the increase has come at the expense of bond values.
Despite another year of relatively subdued inflation, interest rates increased
across the board as the Federal Reserve embarked upon a policy of higher
interest rates to combat the potential difficulties of continued U.S. economic
expansion. In addition to stellar domestic growth that has pushed unemployment
to a 30-year low and possibly exhausted the supply of available workers, a
synchronized global recovery in many foreign markets decimated only a year
before added
*The Retail Class A of the Achievement Idaho Municipal Bond Fund produced a
total return of -5.24% for the period. Including the maximum sales charge of
4.00%, the total return of the Fund's Retail Class A was -9.07%. The Retail
Class B of the Achievement Idaho Municipal Bond Fund produced a total return of
-5.87%. Including the maximum sales charge of 5.00%, the total return of the
Fund's Retail Class B was -10.38%.
16
<PAGE>
THE ACHIEVEMENT FUNDS
ACHIEVEMENT IDAHO MUNICIPAL BOND FUND -- INSTITUTIONAL CLASS
[GRAPHIC OMITTED]
[Plot Points Follow:]
ACHIEVEMENT IDAHO LEHMAN
MUNICIPAL BOND FUND MUNICIPAL BOND INDEX
INSTITUTIONAL CLASS BOND INDEX
12/31/94 10,000 10,000
1/31/95 10,179 10,286
1/31/96 11,470 11,836
1/31/97 11,620 12,291
1/31/98 12,673 13,534
1/31/99 13,403 14,434
1/31/00 12,718 13,909
AVERAGE ANNUAL TOTAL RETURN ANNUALIZED
ONE YEAR ANNUALIZED ANNUALIZED INCEPTION
RETURN THREE YEAR RETURN FIVE YEAR RETURN TO DATE
- ---------------------------------------------------------------------------
INSTITUTIONAL -5.11% 3.05% 4.55% 4.82%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
ACHIEVEMENT IDAHO MUNICIPAL BOND FUND -- RETAIL CLASS A & B
[GRAPHIC OMITTED]
[PLOT POINTS FOLLOWS]
<TABLE>
<CAPTION>
ACHIEVEMENT IDAHO LEHMAN
MUNICIPAL BOND FUND, MUNICIPAL
RETAIL CLASS A BOND INDEX
<S> <C> <C>
3/31/95 9,600 10,000
1/31/96 10,566 11,054
1/31/97 10,677 11,479
1/31/98 11,621 12,641
1/31/99 12,252 13,481
1/31/00 11,610 12,991
ACHIEVEMENT IDAHO LEHMAN
MUNICIPAL BOND FUND, MUNICIPAL
RETAIL CLASS B BOND INDEX
<C> <C>
5/31/98 10,000 10,000
1/31/99 10,413 10,534
1/31/00 9,802 10,151
AVERAGE ANNUAL TOTAL RETURN
ANNUALIZED
ONE YEAR ANNUALIZED ANNUALIZED INCEPTION
RETURN THREE YEAR RETURN FIVE YEAR RETURN TO DATE
- --------------------------------------------------------------------------------
RETAIL A -5.24% 2.83% N/A 4.19%
RETAIL A WITH LOAD -9.07% 1.42% N/A 3.32%
RETAIL B -5.87% N/A N/A -0.48%
RETAIL B WITH LOAD -10.38% N/A N/A -2.63%
</TABLE>
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
17
<PAGE>
THE ACHIEVEMENT IDAHO MUNICIPAL BOND FUND (concluded)
- --------------------------------------------------------------------------------
fuel to the Fed's inflation fighting fire. Certainly, the nearly 200%
increase in the price of crude oil hasn't helped fixed-income investors either.
As a result, the yield on a 10-year AAA-rated general obligation bond increased
118 basis points during the past twelve months from 4.10% to 5.28%.
As we head into 2000, the challenges remain very similar to 1999. The Fed is
posturing itself to increase short-term rates at least one more time as the
ever-resilient consumer powers the economy forward. Still, productivity gains
continue to compensate for wage pressure and core levels of inflation remain in
check. Additional similarities include the consistently stellar credit quality
of Idaho municipal issuers. Modest improvements in agriculture, positive
high-tech exposure, and regularly growing tax receipts position Idaho on
ever-stronger fiscal ground.
What is different from 1999 is that the bond market, which generally trades
6-9 months ahead of current events, has already discounted Fed action.
Essentially, tax-exempt investors are presented with an opportunity to capture
very attractive Idaho securities offering substantially improved total return
potential, and in many cases coupons that pay anywhere from 85% to 95% tax-free
yield as a percent of Treasury yield. Given its solid credit quality and
tremendous advantage on a tax-equivalent basis, the Achievement Idaho Municipal
Bond Fund presents a sound investment option for those Idaho investors
participating in fixed income.
18
<PAGE>
THE ACHIEVEMENT FUNDS
THE ACHIEVEMENT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
The Achievement Municipal Bond Fund seeks to produce as high a level of current
income exempt from Federal income tax as is consistent with the preservation of
capital. It pursues its objective by investing primarily in municipal
obligations of any maturity whose interest is exempt from Federal income tax.
Favorable Utah tax policies permit a large portion of shareholders to receive
double tax-exempt income while benefiting from a nationally diversified
portfolio. Shares of the institutional class of the Fund produced a total return
of -5.94%* for the fiscal year ending January 31, 2000. In comparison, the
Lehman Municipal Bond Index lost -3.64% and the Lipper General Municipal Bond
Index returned -6.44%.
As of January 31, 2000, the quality of the underlying portfolio of
securities is as follows: AAA 41%; AA 26%; A 15%; and BBB 12%. The Fund may own
up to 20% of the assets in BBB rated securities. The average option-adjusted
maturity for the Fund is 12.7 years, with 17.4% of the option-adjusted
maturities falling within of 1-10 years, 59.8% within 11-20 years, and 22.8%
within 21-30. The Fund may hold up to 20% of the assets in issues subject to the
Alternative Minimum Tax (AMT). Current AMT holdings comprise 17.8% of the
portfolio. The Fund is geographically diversified throughout the nation, owning
issues representing 44 states including the District of Columbia and Puerto
Rico. Several states represent more than 5% of the total portfolio: Pennsylvania
7.2% New York 7.2%, Illinois 6.9%, Alaska 5.9%, Ohio 5.1%.
In analyzing bonds for the Fund, individual positions are evaluated and
screened by credit quality, underlying structure, liquidity, and valuation. From
this analysis, a decision is then made if the security will enhance the overall
characteristics of the portfolio and will be consistent with the Fund's
prevailing fixed income strategy. The investment strategy is largely based upon
the ongoing assessment of macroeconomic factors affecting the direction of
interest rates and sector spreads. Macroeconomic analysis is then blended with
the aforementioned security-specific factors to produce a portfolio offering
enhanced returns versus established benchmarks over a full interest rate cycle.
As evidenced by recent performance, the municipal bond market has been less
than favorable for investors. While current tax-free yields are at their highest
levels in several years, the increase has come at the expense of bond values.
Despite another year of relatively subdued inflation, interest rates increased
across the board as the Federal Reserve embarked upon a policy of higher rates
to combat the potential difficulties of continued U.S. economic expansion. In
addition to stellar domestic growth that has pushed unemployment to a 30-year
low and possibly exhausted the supply of available workers, a synchronized
global recovery in many foreign markets decimated only a year before added fuel
to the Fed's inflation fighting fire. Certainly, the nearly 200% increase in the
price of crude oil hasn't helped fixed-income investors either. As a result, the
yield on a 10-year A-rated general obligation bond increased 134 basis points
during the past twelve months from 4.25% to 5.59%.
As we head into 2000, the challenges remain very similar to 1999. The Fed
is posturing itself to increase short-term rates at least one more time as the
ever-resilient consumer powers the economy forward. Still, productivity gains
continue to compensate for wage pressure and core levels of inflation remain in
check. What is different from 1999 is that the bond market, which generally
trades 6-9 months ahead of current events, has already discounted Fed action.
Given its solid credit quality and tremendous advantage on a tax-equivalent
basis, the Achievement Municipal Bond Fund presents a sound investment option
for those investors participating in fixed income.
*The Retail Class A of the Achievement Municipal Bond Fund produced a total
return of -6.10% for the period. Including the maximum sales charge of 4.00%,
the total return of the Fund's Retail Class A was -9.86%. The Retail Class B
of the Achievement Municipal Bond Fund produced a total return of -6.81%.
Including the maximum sales charge of 5.00%, total return of the Fund's Retail
Class B was -11.28%.
19
<PAGE>
ACHIEVEMENT MUNICIPAL BOND FUND -- INSTITUTIONAL CLASS
[GRAPHIC OMITTED]
[PLOT POINTS FOLLOW:]
ACHIEVEMENT LEHMAN LIPPER GENERAL
MUNICIPAL BOND FUND, MUNICIPAL BOND MUNICIPAL DEBT FUNDS
INSTITUTIONAL CLASS INDEX AVERAGE
10/31/96 10,000 10,000 10,000
1/31/97 10,135 10,159 10,131
1/31/98 11,138 11,188 11,166
1/31/99 11,793 11,932 11,780
1/31/00 11,092 11,497 11,021
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR ANNUALIZED ANNUALIZED
RETURN THREE YEAR RETURN FIVE YEAR RETURN
- --------------------------------------------------------------------------------
INSTITUTIONAL -5.94% 3.05% 3.24%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
ACHIEVEMENT MUNICIPAL BOND FUND -- RETAIL CLASS A & B
[GRAPHIC OMITTED]
[PLOT POINTS FOLLOW:]
ACHIEVEMENT LIPPER
MUNICIPAL LEHMAN GENERAL
BOND FUND MUNICIPAL MUNICIPAL
RETAIL BOND DEBT FUNDS
CLASS A INDEX AVERAGE
11/30/96 9,600 10,000 10,000
1/31/97 9,540 9,977 9,958
1/31/98 10,474 10,987 10,975
1/31/99 11,047 11,717 11,578
1/31/00 10,374 11,291 10,833
ACHIEVEMENT LIPPER
MUNICIPAL LEHMAN GENERAL
BOND FUND MUNICIPAL MUNICIPAL
RETAIL BOND DEBT FUNDS
CLASS B INDEX AVERAGE
5/31/98 10,000 10,000 10,000
1/31/99 10,380 10,534 10,449
1/31/00 9,318 10,150 9,776
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR ANNUALIZED ANNUALIZED
RETURN THREE YEAR RETURN INCEPTION TO DATE
- --------------------------------------------------------------------------------
RETAIL A -6.10% 2.83% 3.08%
RETAIL A WITH LOAD -9.86% 1.43% 1.79%
RETAIL B -6.81% N/A -1.32%
RETAIL B WITH LOAD -11.28% N/A -3.42%
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
20
<PAGE>
THE ACHIEVEMENT FUNDS
JANUARY 31, 2000
Statement of Net Assets
- --------------------------------------------------------------------------------
EQUITY FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
[plot points follow:]
Consumer
Products 11.1%
Chemicals
and Drugs 8.1%
Other 5.7%
Retail 9.2%
Oil-Energy 7.3%
Financial 16.7%
Technologies 40.2%
Real Estate
Investment
Trust 1.7%
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 98.2%
BANKS -- 4.7%
Bank of America 75,000 $ 3,633
Chase Manhattan Bank 80,000 6,435
Wells Fargo 100,000 4,000
-------
14,068
-------
CAPITAL GOODS -- 4.5%
General Electric 100,000 13,337
CHEMICALS -- 0.9%
Monsanto 75,000 2,648
-------
COMPUTER SOFTWARE -- 4.3%
Microsoft* 130,000 12,724
-------
COMPUTERS & SERVICES -- 13.6%
Cisco Systems* 100,000 10,950
Dell Computer* 118,000 4,536
Hewlett Packard 40,000 4,330
International Business Machines 30,000 3,366
Oracle* 220,000 10,990
Sun Microsystems* 80,000 6,285
-------
40,457
-------
CONGLOMERATE -- 1.9%
Tyco International 133,000 5,686
-------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
DRUGS -- 7.1%
Abbott Laboratories 100,000 $ 3,262
Merck 90,000 7,093
Pfizer 180,000 6,547
Schering Plough 100,000 4,400
-------
21,302
-------
ENTERTAINMENT -- 1.8%
Carnival 120,000 5,407
-------
FINANCIAL SERVICES -- 9.3%
American Express 35,000 5,768
Capital One Financial 150,000 6,150
Citigroup 85,000 4,882
Fannie Mae 75,000 4,495
Morgan Stanley Dean Witter
Discover 100,000 6,625
-------
27,920
-------
FOOD, BEVERAGE & TOBACCO -- 3.9%
Coca-Cola 130,000 7,467
PepsiCo 120,000 4,095
-------
11,562
-------
INSURANCE -- 2.8%
American International Group 80,000 8,330
-------
INTERNET CONTENT -- 3.4%
America Online* 110,000 6,263
Yahoo!* 12,200 3,929
-------
10,192
-------
MEDICAL PRODUCTS & SERVICES -- 2.3%
Guidant 60,000 3,157
Johnson & Johnson 45,000 3,873
-------
7,030
-------
PAPER & PAPER PRODUCTS -- 2.1%
Kimberly-Clark Corp 100,000 6,194
-------
PETROLEUM PRODUCTS & SERVICES -- 2.7%
Coastal 100,000 3,688
Texaco 85,000 4,494
-------
8,182
-------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
<PAGE>
JANUARY 31, 2000
Statement of Net Assets
Equity Fund (concluded)
- -------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
PETROLEUM REFINING -- 2.8%
Exxon Mobil 100,000 $ 8,350
--------
PRINTING & PUBLISHING -- 1.9%
McGraw-Hill 100,000 5,606
--------
RETAIL -- 9.2%
Gap Inc 150,000 6,703
Home Depot 135,000 7,644
Target 90,000 5,946
Wal-Mart Stores 130,000 7,118
--------
27,411
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 8.5%
Analog Devices* 100,000 9,350
Intel 130,000 12,862
Motorola 22,000 3,009
--------
25,221
--------
TELEPHONES & TELECOMMUNICATIONS -- 10.5%
AT&T 150,000 7,913
Lucent Technologies 50,000 2,763
MCI WorldCom* 187,500 8,613
Qwest Communications
International* 190,000 7,481
SBC Communications 107,000 4,614
--------
31,384
--------
TOTAL COMMON STOCKS
(Cost $196,571) 293,011
--------
CASH EQUIVALENTS -- 1.7%
SEI Daily Income Trust
Money Market Portfolio $1,448 1,448
SEI Daily Income Trust Prime
Obligation Portfolio 3,609 3,609
--------
TOTAL CASH EQUIVALENTS
(Cost $5,057) 5,057
--------
TOTAL INVESTMENTS -- 99.9%
(Cost $201,628) 298,068
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% 256
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional Class
(unlimited authorization -- no par
value) based on 15,402,534
outstanding shares of beneficial
interest $175,311
Portfolio Shares of Retail Class A
(unlimited authorization -- no par
value) based on 709,680 outstanding
shares of beneficial interest 10,370
Portfolio Shares of Retail Class B
(unlimited authorization -- no par
value) based on 164,259 outstanding
shares of beneficial interest 2,738
Undistributed net investment loss (11)
Accumulated net realized gain on investments 13,476
Net unrealized appreciation on investments 96,440
--------
TOTAL NET ASSETS -- 100.0% $298,324
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $18.34
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $18.26
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($18.26 / 95.5%) $19.12
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B $18.01
========
- ---------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
[PLOT POINTS FOLLOWS]
OTHER 3.1%
TREASURY
OBLIGATIONS 16.1%
CORPORATE
SECURITIES 9.2%
COMMON
STOCKS 70.3%
NON-AGENCY
MORTGAGE-BACKED
SECURITIES 1.3%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 10.9%
U.S. Treasury Notes
7.750%, 02/15/01 $2,500 $ 2,534
7.875%, 08/15/01 2,500 2,546
7.500%, 05/15/02 2,500 2,542
7.250%, 05/15/04 2,500 2,545
7.875%, 11/15/04 2,500 2,610
6.625%, 05/15/07 3,000 2,976
5.500%, 02/15/08 3,000 2,775
4.750%, 11/15/08 3,000 2,609
5.500%, 05/15/09 3,000 2,748
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $24,408) 23,885
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 5.1%
Federal Home Loan Bank
6.250%, 08/13/04 2,000 1,927
Federal Home Loan Mortgage Corporation
5.750%, 04/15/08 2,500 2,262
6.450%, 04/29/09 2,000 1,844
7.625%, 09/09/09 1,000 983
Fannie Mae
6.500%, 08/15/04 2,000 1,947
6.000%, 05/15/08 2,500 2,300
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $11,981) 11,263
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 9.1%
ENTERTAINMENT -- 1.0%
Walt Disney, MTN
5.125%, 12/15/03 $2,255 $ 2,089
--------
FINANCE -- 5.0%
Aetna Services
7.125%, 08/15/06 1,500 1,425
Banc One
7.250%, 08/01/02 1,500 1,492
Bank of America, MTN
7.125%, 05/12/05 2,000 1,945
Chase Manhattan
6.500%, 01/15/09 2,000 1,830
First Union
7.500%, 07/15/06 2,000 1,965
Ford Motor Credit
6.250%, 11/08/00 1,000 997
Safeco
6.875%, 07/15/07 1,500 1,361
--------
11,015
--------
INDUSTRIAL -- 2.2%
Lucent Technologies
7.250%, 07/15/06 2,000 1,977
Philip Morris
7.250%, 09/15/01 2,000 1,975
Seagram, YB
6.500%, 04/01/03 1,000 965
--------
4,917
--------
RETAIL -- 0.9%
Albertsons
6.950%, 08/01/09 2,000 1,892
--------
TOTAL CORPORATE BONDS
(Cost $20,744) 19,913
--------
ASSET-BACKED SECURITIES -- 0.7%
American Southwest Financial Securities,
Series 1996-FHA1, Cl A2
7.000%, 11/25/38 820 804
Olympic Automobile Receivables
Trust, Series 1995-E, Cl A5
5.950%, 11/15/01 759 759
--------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,584) 1,563
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
JANUARY 31, 2000
Statement of Net Assets
Balanced Fund (continued)
- --------------------------------------------------------------------------------
FACE AMOUNT/ MARKET
DESCRIPTION (000) SHARES VALUE (000)
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES -- 1.4%
Donaldson Lufkin Jenrette Mortgage
Association, Series 1997-CF1,
Cl A1B (A)
7.600%, 04/15/07 $1,200 $ 1,176
General Motors Acceptance
Corporation, Commercial
Mortgage Securities,
Series 1991-C1, Cl A1B
6.175%, 05/15/33 2,000 1,789
--------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $3,238) 2,965
--------
COMMON STOCKS -- 70.0%
BANKS -- 3.1%
Bank of America 45,368 2,198
Chase Manhattan Bank 32,000 2,574
Wells Fargo 50,900 2,036
--------
6,808
--------
CAPITAL GOODS -- 3.5%
General Electric 58,000 7,736
--------
CHEMICALS -- 0.5%
Monsanto 30,000 1,059
--------
COMPUTER SOFTWARE -- 3.4%
Microsoft* 75,000 7,341
--------
COMPUTERS & SERVICES -- 9.3%
Cisco Systems* 60,000 6,570
Dell Computer* 56,000 2,152
Hewlett Packard 12,000 1,299
International Business Machines 13,200 1,481
Oracle* 120,000 5,994
Sun Microsystems* 36,000 2,828
--------
20,324
--------
DRUGS -- 5.2%
Abbott Laboratories 35,000 1,142
Merck 58,000 4,571
Pfizer 39,000 1,419
Schering Plough 50,000 2,200
SmithKline Beecham, ADR 32,000 1,952
--------
11,284
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ENTERTAINMENT -- 2.1%
Carnival 60,000 $ 2,704
Walt Disney 49,000 1,779
--------
4,483
--------
FINANCIAL SERVICES -- 6.4%
American Express 23,000 3,791
Capital One Financial 63,000 2,583
Citigroup 45,000 2,585
Fannie Mae 30,000 1,798
Morgan Stanley Dean Witter
Discover 50,000 3,312
--------
14,069
--------
FOOD, BEVERAGE & TOBACCO -- 2.2%
Coca-Cola 45,000 2,585
PepsiCo 67,000 2,286
--------
4,871
--------
HOLDING COMPANY -- 1.0%
Berkshire Hathaway, Cl B* 1,365 2,247
--------
INSURANCE -- 2.1%
American International Group 45,000 4,686
--------
INTERNET CONTENT -- 2.6%
America Online* 66,000 3,758
Yahoo!* 6,100 1,965
--------
5,723
--------
MEDICAL PRODUCTS & SERVICES -- 1.6%
Guidant 43,000 2,263
Johnson & Johnson 15,000 1,291
--------
3,554
--------
PETROLEUM PRODUCTS & SERVICES -- 1.9%
Coastal 52,000 1,917
Texaco 42,000 2,221
--------
4,138
--------
PETROLEUM REFINING -- 2.6%
Exxon Mobil 67,683 5,652
--------
PRINTING & PUBLISHING -- 1.0%
McGraw-Hill 40,000 2,243
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
RETAIL -- 6.1%
Albertson's 34,650 $ 1,061
Gap Stores 40,000 1,788
Home Depot 63,000 3,567
Target 52,000 3,435
Wal-Mart Stores 66,000 3,614
--------
13,465
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 6.5%
Analog Devices* 55,000 5,143
Intel 65,000 6,431
Micron Technology 20,000 1,244
Motorola 11,000 1,504
--------
14,322
--------
TELEPHONES & TELECOMMUNICATION -- 8.9%
AT&T 82,500 4,352
GTE 33,000 2,419
Lucent Technologies 40,000 2,210
MCI WorldCom* 93,000 4,272
Qwest Communications International* 60,000 2,363
SBC Communications 55,000 2,372
U.S. West 24,000 1,596
--------
19,584
--------
TOTAL COMMON STOCKS
(Cost $102,098) 153,589
--------
CASH EQUIVALENTS -- 2.3%
SEI Daily Income Trust
Money Market Portfolio $1,261 1,261
SEI Daily Income Trust Prime
Obligation Portfolio 3,912 3,912
--------
TOTAL CASH EQUIVALENTS
(Cost $5,173) 5,173
--------
TOTAL INVESTMENTS -- 99.5%
(Cost $169,226) 218,351
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.5% 996
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional
Class (unlimited authorization
-- no par value) based on
15,387,364 outstanding shares
of beneficial interest $162,978
Portfolio Shares of Retail Class A
(unlimited authorization --
no par value) based on 292,406
outstanding shares of beneficial
interest 3,483
Portfolio Shares of Retail Class B
(unlimited authorization -- no par value)
based on 148,323 outstanding shares of
beneficial interest 2,014
Undistributed net investment income 299
Accumulated net realized gain on investments 1,448
Net unrealized appreciation on investments 49,125
--------
TOTAL NET ASSETS -- 100.0% $219,347
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $13.86
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $13.84
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($13.84 / 95.5%) $14.49
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE RETAIL CLASS B $13.81
========
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
MTN -- MEDIUM TERM NOTE
YB -- YANKEE BOND
(A) SECURITY SOLD WITH IN 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 $1,176,180 IN AGGREGATE, WHICH
REPRESENTS 0.54% OF THE TOTAL NET ASSETS OF THE FUND.
(CONCLUDED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
25
<PAGE>
JANUARY 31, 2000
Statement of Net Assets
- --------------------------------------------------------------------------------
INTERMEDIATE TERM BOND FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
PLOT POINTS FOLLOW:
OTHER 1.0%
ASSET-BACKED
SECURITIES 4.2%
NON-AGENCY
MORTGAGE-BACKED
SECURITIES 4.6%
CASH
EQUIVALENTS 0.4%
CORPORATE
SECURITIES 38.8%
U.S.
GOVERNMENT
SECURITIES 51.0%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 32.7%
U.S. Treasury Bonds
7.125%, 02/15/23 $2,000 $ 2,107
6.250%, 08/15/23 2,000 1,906
U.S. Treasury Notes
7.875%, 08/15/01 1,500 1,528
6.375%, 09/30/01 5,000 4,980
7.500%, 11/15/01 1,000 1,014
6.125%, 12/31/01 6,000 5,943
6.250%, 08/31/02 4,000 3,960
6.250%, 02/15/03 1,000 987
5.500%, 05/31/03 3,000 2,893
5.375%, 06/30/03 2,000 1,921
5.750%, 08/15/03 1,000 970
5.875%, 02/15/04 3,000 2,916
7.500%, 02/15/05 1,000 1,030
6.500%, 08/15/05 2,000 1,976
5.875%, 11/15/05 1,000 958
6.875%, 05/15/06 1,000 1,006
7.000%, 07/15/06 2,000 2,022
6.500%, 10/15/06 6,000 5,909
6.250%, 02/15/07 3,000 2,918
6.125%, 08/15/07 3,000 2,889
5.625%, 05/15/08 3,000 2,790
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $54,716) 52,623
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 18.8%
Federal Farm Credit Bank
7.310%, 11/05/07 $2,000 $ 2,007
Federal Home Loan Bank
7.190%, 04/27/01 1,000 1,005
7.280%, 07/25/01 1,000 1,007
7.390%, 08/22/01 1,000 1,009
5.600%, 10/28/03 1,000 947
7.380%, 08/05/04 1,000 1,009
6.250%, 08/13/04 1,000 964
6.375%, 08/15/06 1,000 952
6.185%, 05/06/08 3,035 2,835
5.450%, 01/12/09 2,000 1,760
Federal Home Loan Mortgage
Corporation
5.750%, 07/15/03 2,000 1,919
6.795%, 12/01/03 1,000 990
5.900%, 02/14/06 1,000 937
6.450%, 04/29/09 2,000 1,844
7.020%, 06/23/09 2,000 1,898
7.625%, 09/09/09 2,500 2,457
Federal National Mortgage Association
5.750%, 04/15/03 1,000 963
4.750%, 11/14/03 2,000 1,845
6.440%, 05/01/08 983 937
6.375%, 06/15/09 1,000 935
Federal National Mortgage
Association, MTN
6.625%, 04/18/01 1,000 999
6.760%, 07/16/07 1,000 939
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $31,920) 30,158
--------
CORPORATE BONDS -- 35.3%
AUTOMOTIVE -- 0.6%
TRW INC.
6.450%, 06/15/01 1,000 987
--------
BANKS -- 6.0%
Bank of America
7.125%, 05/01/06 2,000 1,942
Chase Manhattan
8.125%, 06/15/02 1,000 1,012
6.375%, 02/15/08 1,000 915
Citicorp
7.125%, 06/01/03 1,000 986
First Tennessee Bank
5.750%, 12/01/08 1,000 854
First Union
7.050%, 08/01/05 1,000 964
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
BANKS -- (CONTINUED)
J.P. Morgan
7.250%, 01/15/02 $1,000 $ 995
NationsBank
7.625%, 04/15/05 1,000 996
Society National Bank
7.250%, 06/01/05 1,000 975
--------
9,639
--------
ELECTRICAL UTILITIES -- 2.3%
Consolidated Edison
6.375%, 04/01/03 1,000 965
6.150%, 07/01/08 1,000 906
Monogahela Power
7.360%, 01/15/10 1,000 955
Scana, MTN
6.250%, 07/08/03 1,000 949
--------
3,775
--------
FINANCE -- 8.0%
Aetna Services
6.750%, 08/15/01 2,000 1,975
American General Finance
7.250%, 04/15/00 1,000 1,001
Associates of North America, MTN
6.810%, 08/03/01 1,000 994
7.540%, 04/14/04 1,000 995
Commercial Credit
6.875%, 05/01/02 1,000 989
Ford Motor Credit
8.000%, 06/15/02 1,000 1,014
7.750%, 03/15/05 1,000 1,002
General Motors Acceptance, MTN
7.250%, 05/15/03 1,000 991
Household Finance
7.650%, 05/15/07 1,000 987
Lehman Brothers Holdings, MTN
6.125%, 07/15/03 1,000 948
Sears Roebuck Acceptance
6.950%, 05/15/02 1,000 984
Sears Roebuck Acceptance, MTN
6.580%, 11/20/03 1,000 961
--------
12,841
--------
FINANCIAL SERVICES -- 0.6%
Capital One Bank
7.080%, 10/30/01 1,000 989
--------
INDUSTRIAL -- 12.1%
AT&T
6.750%, 04/01/04 1,000 975
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
INDUSTRIAL -- (CONTINUED)
CSR America
6.875%, 07/21/05 $2,000 $ 1,880
CSX Transportation
7.540%, 03/15/03 1,000 995
Dayton Hudson
7.500%, 07/15/06 2,000 1,973
Dow Capital, YB
7.125%, 01/15/03 1,000 986
Grand Metro
7.125%, 09/15/04 1,000 980
Hertz
7.000%, 07/01/04 2,000 1,943
J.C. Penney, MTN
7.050%, 05/23/05 1,000 925
Kerr-McGee
6.625%, 10/15/07 1,000 908
Nabisco
6.700%, 06/15/02 1,000 971
Pacific Bell
7.000%, 07/15/04 1,000 985
Ryder Systems
7.340%, 11/01/00 1,040 1,040
Sara Lee, MTN
7.400%, 03/22/02 1,000 998
Texas Instruments, MTN
6.875%, 07/15/00 1,000 1,000
Wal-Mart Stores
6.500%, 06/01/03 1,000 978
Walt Disney
6.750%, 03/30/06 2,000 1,935
--------
19,472
--------
TELEPHONES & TELECOMMUNICATIONS -- 2.0%
GTE California
5.500%, 01/15/09 1,000 861
Southwestern Bell Telephone, MTN
5.750%, 09/01/04 1,000 929
U.S. West Communications
5.625%, 11/15/08 1,000 859
World Com
6.125%, 08/15/01 500 493
--------
3,142
--------
UTILITIES -- 3.7%
Pacific Gas & Electric, MTN
6.680%, 03/19/03 1,000 974
Philadelphia Electric
6.625%, 03/01/03 1,000 974
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
27
<PAGE>
JANUARY 31, 2000
Statement of Net Assets
Intermediate Term Bond Fund (concluded)
- -------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
UTILITIES -- (CONTINUED)
Public Service Electric & Gas
6.500%, 05/01/04 $1,000 $ 956
Rochester Gas & Electric, MTN
6.375%, 07/30/03 1,000 956
Southwestern Bell Telephone, MTN
6.250%, 03/12/01 1,150 1,140
Telstra
6.500%, 07/31/03 1,000 970
--------
5,970
--------
TOTAL CORPORATE BONDS
(Cost $59,645) 56,815
--------
ASSET-BACKED SECURITIES -- 4.4%
Champion Home Equity Loan Trust,
Series 1997-Z, Class A3
6.770%, 03/25/15 2,000 1,964
Olympic Automobile Receivables
Trust, Series 1995-E, Class A5
5.950%, 11/15/01 1,146 1,145
Olympic Automobile Receivables
Trust, Series 1996-B, Class A5
6.900%, 02/15/04 2,000 1,999
WFS Financial Owner Trust,
Series 1998-B, Class A4
6.050%, 04/20/03 2,000 1,934
--------
TOTAL ASSET-BACKED SECURITIES
(Cost $7,152) 7,042
--------
NON-AGENCY MORTGAGE-BACKED SECURITIES -- 7.4%
American Southwest Financial Securities,
Series 1996-FHA1, Cl A2
7.000%, 11/25/38 1,640 1,607
Donaldson Lufkin Jenrette Mortgage
Association, Series 1996-CF2,
Cl A1B (A)
7.290%, 11/12/21 3,000 2,919
Donaldson Lufkin Jenrette Mortgage
Association, Series 1997-CF1,
Cl A1B (A)
7.600%, 04/15/07 2,000 1,960
GMAC Commercial Mortgage
Securities, Series 1991-C1 A1b
6.175%, 05/15/33 3,000 2,683
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED SECURITIES -- (CONTINUED)
Lehman Brothers Commercial Conduit
Mortgage Trust, Series 1998-C1,
Class B
6.590%, 01/18/08 $3,000 $ 2,708
--------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(Cost $12,774) 11,877
--------
CASH EQUIVALENTS -- 0.4%
SEI Daily Income Trust Money
Market Portfolio 2 2
SEI Daily Income Trust Prime
Obligation Portfolio 587 587
--------
TOTAL CASH EQUIVALENTS
(Cost $589) 589
--------
TOTAL INVESTMENTS -- 99.0%
(Cost $166,796) 159,104
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.0% 1,658
--------
NET ASSETS:
Portfolio Shares of Institutional
Class (unlimited authorization
-- no par value) based on
16,104,640 outstanding shares
of beneficial interest 169,837
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 120,650 outstanding shares
of beneficial interest 1,228
Accumulated net realized loss on investments (2,611)
Net unrealized depreciation on investments (7,692)
--------
TOTAL NET ASSETS -- 100.0% $160,762
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $9.91
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- RETAIL CLASS A $9.93
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($9.93 / 96.5%) $10.29
========
MTN -- MEDIUM TERM NOTE
YB -- YANKEE BOND
(A) SECURITY SOLD WITH IN 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 $4,878,910 IN AGGREGATE, WHICH
REPRESENTS 3.03% OF THE TOTAL NET ASSETS OF THE FUND.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
PLOT POINTS FOLLOW:
U.S.
GOVERNMENT
SECURITIES 34.1%
CASH
EQUIVALENTS 5.2%
CORPORATE
SECURITIES 60.7%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligations -- 9.3%
U.S. Treasury Notes
6.125%, 12/31/01 $1,000 $ 990
6.250%, 01/31/02 1,000 993
U.S. Treasury Bond
5.750%, 06/30/01 1,000 989
-------
Total U.S. Treasury Obligations
(Cost $3,061) 2,972
-------
U.S. Government Agency Obligations -- 24.4%
Federal Home Loan Bank
5.230%, 11/16/01 1,000 969
5.500%, 01/07/02 1,000 973
5.435%, 01/29/02 1,000 969
6.080%, 07/08/02 2,000 1,961
Federal National Mortgage Association,
MTN
5.410%, 02/04/02 1,000 972
6.500%, 09/05/02 1,000 981
Federal Home Loan Mortgage Pool
6.250%, 10/15/02 1,000 980
-------
Total U.S. Government Agency Obligations
(Cost $8,001) 7,805
-------
Corporate Bonds -- 59.9%
Banks -- 6.2%
First Chicago MTN
6.700%, 03/15/02 1,000 984
Key Corp MTN
6.750%, 05/29/01 1,000 992
-------
1,976
-------
- ----------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- ----------------------------------------------------------------------
Electrical Utilities -- 3.1%
Pacificorp MTN
7.250%, 09/09/02 $1,000 $ 994
-------
Finance -- 12.5%
Beneficial, Series H, MTN
6.330%, 12/18/00 1,000 998
Ford Motor Credit, MTN
6.950%, 05/15/00 1,000 1,001
Goldman Sachs
6.200%, 12/15/00 1,000 995
Salomon Smith Barney
6.500%, 03/01/00 1,000 1,000
-------
3,994
-------
Financial Services -- 12.2%
Bear Stearns
6.750%, 05/01/01 1,000 992
General Motors Acceptance
5.500%, 01/14/02 1,000 965
International Lease Finance
5.450%, 01/04/02 1,000 965
Merrill Lynch
6.500%, 04/01/01 1,000 991
-------
3,913
-------
Gas/Natural Gas -- 1.2%
Northern Illinois Gas
6.450%, 08/01/01 375 371
-------
Industrial -- 12.4%
Albertsons
6.375%, 06/01/00 1,000 999
J.C. Penney, MTN
6.375%, 09/15/00 1,000 992
John Deere Capital, MTN
6.150%, 08/01/00 1,000 997
Sears Roebuck Acceptance, MTN
6.400%, 09/25/00 1,000 995
-------
3,983
-------
Insurance -- 3.1%
Aetna Services
6.750%, 08/15/01 1,000 988
-------
Paper & Paper Products -- 3.0%
Mead Corporaton
6.600%, 03/01/02 1,000 978
-------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
29
<PAGE>
JANUARY 31, 2000
Statement of Net Assets
Short Term Bond Fund (concluded)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS -- 3.1%
Lucent Technologies
6.900%, 07/15/01 $1,000 $ 996
--------
UTILITIES -- 3.1%
Detroit Edision, MTN
6.390%, 03/15/00 1,000 1,000
--------
TOTAL CORPORATE BONDS
(Cost $19,547) 19,193
--------
CASH EQUIVALENTS -- 5.1%
SEI Daily Income Trust
Money Market Portfolio 139 139
SEI Daily Income Trust
Prime Obligation Portfolio 1,493 1,493
--------
TOTAL CASH EQUIVALENTS
(Cost $1,632) 1,632
--------
TOTAL INVESTMENTS -- 98.7%
(Cost $32,241) 31,602
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.3% 436
--------
NET ASSETS:
Portfolio Shares of Institutional
Class (unlimited authorization
-- no par value) based on 3,260,149
outstanding shares of beneficial interest 34,972
Portfolio Shares of Retail Class A
(unlimited authorization -- no par value)
based on 16,320 outstanding shares
of beneficial interest 166
Accumulated net realized loss on investments (2,461)
Net unrealized depreciation on investments (639)
--------
TOTAL NET ASSETS -- 100.0% $ 32,038
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $9.78
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS A $9.77
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($9.77 / 98.5%) $9.92
========
- ---------------------------------------------------------------------
MTN -- MEDIUM TERM NOTE
- ----------------------------------------------------------------------
IDAHO MUNICIPAL BOND FUND
- ----------------------------------------------------------------------
[PIE CHART OMITTED]
PLOT POINTS FOLLOW:
REVENUE
BONDS 44.5%
GENERAL
OBLIGATIONS 55.5%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 99.7%
IDAHO -- 92.8%
Ada & Canyon Counties, Joint School
District # 2, Meridian GO
5.500%, 07/30/15 $1,375 $ 1,341
5.500%, 07/30/16 500 484
Ammon, Urban Renewal Agency RB,
Series B
6.000%, 08/01/14 120 123
Bannock County, School District # 25,
Pocatello GO, FGIC
5.250%, 08/01/15 500 471
Bingham County, School District # 055,
Blackfoot GO, MBIA
5.650%, 08/01/15 560 558
Blackfoot Idaho Ctfs Partn Wastewater
Treatment Plt Facs Pj GO, AMBAC
5.800%, 09/01/18 135 134
5.850%, 09/01/19 115 114
Boise City Idaho Urban Renewalagy
Lease RB Urban Renewal-Ada Cnty
Courts, AMBAC
5.900%, 08/15/29 500 474
Boise City, Airport RB, Package Facility
Project, Series A, AMBAC
5.400%, 08/01/11 500 496
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO -- (CONTINUED)
Boise City, Idaho Urban Renewal Agency
Tax Increment Capital City RB
Credit Support, FSA
5.100%, 09/01/14 $ 365 $ 342
Boise City, Idaho Urban Renewal
Agency Tax Increment Capital
City RB Credit Support, FSA
5.150%, 09/01/15 385 359
Boise City, Independent School
District # 1 GO, AMBAC
5.400%, 07/30/14 500 489
Boise State University Idaho RB, FSA
5.000%, 04/01/23 1,000 861
Boise State University Student
Housing System RB, MBIA
5.250%, 04/01/17 160 150
Boise, Independent School District GO
5.375%, 07/30/10 250 249
5.500%, 07/30/16 1,250 1,203
Bonneville & Bingham Counties,
School District # 93 GO, FGIC
5.750%, 07/30/07 500 520
5.500%, 07/30/10 500 507
Bonneville County, Jail Bonds GO, FSA
5.500%, 08/01/16 590 576
Canyon County, School District # 132
GO, FSA
5.400%, 07/30/11 200 200
5.400%, 07/30/12 400 398
5.450%, 07/30/14 470 462
5.450%, 07/30/15 900 873
Cassia & Twin Falls Counties, Joint
School District # 151 GO, FGIC
5.375%, 08/01/14 1,000 975
5.375%, 08/01/16 1,000 957
Elks, Health Facility Authority RB,
Hospital Rehab Project
5.000%, 07/15/08 250 223
5.125%, 07/15/13 500 413
5.450%, 07/15/23 715 553
Elmore County, School District # 193,
Mountain Home GO, AMBAC
5.000%, 07/31/10 400 390
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO -- (CONTINUED)
Fremont & Madison Counties, School
District # 215, St. Anthony GO, FSA
5.600%, 08/01/14 $ 125 $ 125
5.600%, 08/01/15 765 757
Gooding & Lincoln Counties,
Joint School District
# 231 GO, FSA,
Pre-refunded @ 100 (A)
6.250%, 02/01/12 130 137
Idaho Health Facilities Holy Cross
Health Systems, MBIA
5.000%, 12/01/18 500 431
5.000%, 12/01/28 40 33
Idaho Health Facs Auth Rev
Inflos-Ref-Ihc Hosps ETM
6.650%, 02/15/21 150 161
Idaho State Building Authority
RB, MBIA
5.600%, 09/01/05 100 103
Idaho State Building Authority RB,
Series A, MBIA
5.000%, 09/01/21 1,150 986
Idaho State Health Facility Authority
RB, Bannock Regional Medical Draft
5.250%, 05/01/14 250 208
Idaho State Health Facility Authority
RB, Magic Valley Regional
Medical Center, AMBAC
5.625%, 12/01/13 200 200
Idaho State Health Facility Authority
RB, Mercy Medical Center,
Pre-refunded @ 102 (A)
6.200%, 11/15/12 130 137
Idaho State Health Facility Authority
RB, St. Alphonsus Regional Medical
Center, Pre-refunded @ 102 (A)
6.100%, 12/01/07 100 105
Idaho State Housing & Finance
Association RB, AMT
6.150%, 01/01/28 960 929
Idaho State Housing & Finance
Association RB, SFM
4.950%, 07/01/11 365 340
Idaho State Housing and Finance
Association RB, SFM - Mezz
Series I-2, AMT
5.200%, 07/01/20 500 436
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
31
<PAGE>
JANUARY 31, 2000
Statement of Net Assets
Idaho Municipal Bond Fund (concluded)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO -- (CONTINUED)
Idaho State Health Facilities Authority
Holy Cross Health System Rev
Callable @ 101 (A),
RB, MBIA
5.250%, 06/01/08 $ 500 $ 473
Idaho State University RB,
Student Facility Fee, FSA
6.500%, 04/01/15 865 917
Idaho State University RB,
Student Facility Fee, MBIA
4.900%, 04/01/17 500 436
Jefferson County, School District
# 253 GO, MBIA
5.500%, 08/01/15 240 235
Jerome, Lincoln & Gooding Counties
GO, FSA
5.000%, 07/31/12 290 277
Kootenai County, Idaho School District
#273 GO, AMBAC
5.000%, 07/30/17 170 151
Lewis-Clark State College, Refunding
Improvements RB, MBIA
5.200%, 04/01/17 250 231
Madison County GO, FSA
5.400%, 08/01/15 420 407
Madison County, Idaho Memorial
Hospital Board RB, Asset Guaranty
5.000%, 12/01/18 250 212
McCall, Water RB, Parity Lien, FSA
5.750%, 03/01/07 215 223
5.850%, 03/01/16 500 498
Meridian GO, FSA
5.000%, 08/01/15 290 264
Nez Perce County, Pollution Control
RB, Potlatch Corporation Project
6.000%, 10/01/24 1,000 914
Oneida County, School District
# 351 GO, MBIA
5.000%, 07/31/15 375 341
Payette County, School District
# 372 GO
6.250%, 07/30/10 365 395
Payette County, School District
# 372 GO, Asset Guaranty,
Pre-refunded @ 100 (A)
6.750%, 07/31/09 100 106
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO -- (CONTINUED)
Southern Idaho Regional Solid
Waste Project COP
5.450%, 11/01/13 $ 500 $ 496
Teton County, School District
# 401 GO, FSA
5.500%, 08/01/10 400 406
Twin Falls & Cassia Counties, Joint
School District # 418 GO, MBIA
5.450%, 08/01/15 145 141
Twin Falls County, School District
# 413 GO, Class A, AMBAC
5.250%, 07/30/13 400 388
5.250%, 07/30/14 420 403
Twin Falls County, School District
# 415 GO, Asset Guaranty
5.500%, 08/01/15 195 187
University of Idaho, Student Fee
RB, MBIA
5.650%, 04/01/22 500 488
University of Idaho, Student Fee
RB, FSA
5.850%, 04/01/11 700 718
6.000%, 04/01/26 500 486
--------
29,776
--------
PUERTO RICO -- 6.9%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 250 245
Puerto Rico Commonwealth Highway
and Transportation Authority
Highway RB, FSA
6.250%, 07/01/13 400 429
6.250%, 07/01/14 500 533
6.250%, 07/01/16 735 777
Puerto Rico Commonwealth Highway
and Transportation Authority
Highway RB, MBIA
5.500%, 07/01/26 250 232
--------
2,216
--------
TOTAL MUNICIPAL BONDS
(Cost $33,962) 31,992
--------
TOTAL INVESTMENTS -- 99.7%
(Cost $33,962) 31,992
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.3% 97
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
32
<PAGE>
THE ACHIEVEMENT FUNDS
- -------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Institutional
Class (unlimited authorization
-- no par value) based on 2,178,119
outstanding shares of beneficial
interest $22,412
Portfolio Shares of Retail
Class A (unlimited authorization
-- no par value) based on
892,559 outstanding shares
of beneficial interest 9,466
Portfolio Shares of Retail Class B
(unlimited authorization --
no par value) based on
193,082 outstanding shares
of beneficial interest 2,110
Accumulated net realized gain on investments 71
Net unrealized depreciation on investments (1,970)
--------
TOTAL NET ASSETS -- 100.0% $32,089
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $9.82
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS A $9.85
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A ($9.85 / 96%) $10.26
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B $9.86
========
- --------------------------------------------------------------------------------
(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
ASSETG -- ASSET GUARANTY
FGIC -- FEDERAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
SFM -- SINGLE FAMILY MORTGAGE
- --------------------------------------------------------------------------------
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
PLOT POINTS FOLLOW:
CASH
EQUIVALENTS 2.5%
GENERAL
OBLIGATIONS 18%
REVENUE
BONDS 79.5%
% OF TOTAL PORTFOLIO INVESTMENTS
- -------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
MUNICIPAL BONDS -- 96.0%
ALABAMA -- 0.1%
Alabama State Housing Finance
Authority RB, Series B,
AMT, GNMA
6.100%, 10/01/20 $ 105 $ 102
-----
ALASKA -- 5.9%
Alaska State Housing Finance
RB, MBIA
6.100%, 12/01/37 370 358
Alaska State Housing Finance RB,
Series A, GOC
5.700%, 12/01/29 500 461
Alaska State Student Loan RB,
Series A, AMBAC, AMT
5.750%, 07/01/14 400 389
Alaska State Veterans Housing RB,
1st Series, GNMA
5.400%, 12/01/23 385 347
Valdez, Marine Term RB, Mobil
Pipeline Project
5.750%, 11/01/28 1,000 902
Valdez, Marine Term RB, Mobil
Pipeline Project, Series A
5.850%, 08/01/25 1,000 920
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
33
<PAGE>
JANUARY 31, 2000
Statement of Net Assets
Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
ALASKA -- (CONTINUED)
Valdez, Marine Term RB, Mobil
Pipeline Project, Series B
5.500%, 10/01/28 $1,000 $ 870
--------
4,247
--------
ARIZONA -- 1.1%
Maricopa County, Elementary
School District # 068 GO,
Alhambra, AMBAC
5.100%, 07/01/11 500 482
Maricopa County, Health Facilites
Authority RB, Catholic
Healthcare West Project
5.000%, 07/01/16 400 307
--------
789
--------
ARKANSAS -- 0.7%
Independence County, Pollution Control
RB, Power & Light Project
6.250%, 01/01/21 500 492
--------
CALIFORNIA -- 3.6%
California State Tri-City Hospital District
RB, Series A, MBIA
5.625%, 02/15/17 1,010 975
Los Angeles, Wastewater System RB,
Series A
5.875%, 06/01/24 160 155
Northern California Power Agency RB,
AMBAC, Pre-refunded @ 100 (A)
7.500%, 07/01/23 720 854
Sacramento, Municipal Utility RB,
Serial E, AMBAC
5.750%, 05/15/22 130 125
San Francisco, Airport Improvement
RB, United Airlines, ETM
8.000%, 07/01/13 290 332
San Francisco, City & County RB,
Series A, GNMA
7.125%, 10/01/16 120 124
--------
2,565
--------
COLORADO -- 4.3%
Colorado Edl & Cultural Facs Auth
Rev Charter School - Core Knowledge
PJ, RB
7.000%, 11/01/29 200 194
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
COLORADO -- (CONTINUED)
Colorado State Board of Agriculture RB,
University of Southern Colorado
8.250%, 05/01/03 $ 100 $ 101
Denver City & Cnty Sch Dist No 1,
GO, FGIC
5.250%, 12/01/17 500 456
Denver City & County Airport,
RB, MBIA
5.500%, 11/15/25 500 453
Denver, City & County RB, The Boston
Loft Project, Series A, AMT, FHA
5.750%, 10/01/27 500 459
Douglas & Elbert Counties, Douglas
County School District,
No. Re 1, GO, FGIC
5.250%, 12/15/15 1,000 925
Summit County, Sports Facilities RB,
Keystone Resorts Project
7.375%, 09/01/10 420 464
--------
3,052
--------
CONNECTICUT -- 1.0%
Connecticut State, Health & Educational
Facilities Authority RB, Trinity College,
Series E, MBIA
5.875%, 07/01/26 155 150
Connectitcut State, Health & Elder
Facility Revenue New Britain General
Hospital, Series B, Loc: AMBAC
6.000%, 07/01/24 115 112
Waterbury, Housing Authority RB,
Section 8, Project A, GNMA
5.850%, 02/01/37 500 471
--------
733
--------
FLORIDA -- 1.5%
Boynton Beach, Housing RB,
Clipper Cove Apartments
6.450%, 01/01/27 505 515
Florida State Housing Finance Agency
RB, Glen Oaks Apartment Project,
AMT, FNMA
5.900%, 02/01/30 500 471
Florida State University Housing Facility
RB, MBIA
5.875%, 05/01/14 100 101
--------
1,087
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
34
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
GEORGIA -- 3.7%
Atlanta, Water and Wastewater Revenue
RB, Series A, FGIC
5.500%, 11/01/22 $1,000 $ 927
Fulton County Housing Authority,
Multi-Family Housing RB, Concorde
Place Apartments Proj-C, AMT
6.900%, 01/01/28 500 550
Georgia State Housing & Finance
Authority RB, Homeownership
Opportunity Program, Series C, FHA
6.500%, 12/01/11 295 303
Georgia State Housing & Finance
Authority RB, Subseries B2, AMT
5.850%, 12/01/28 495 460
Smyra, Hospital Authority RB,
Ridgeview Institute Project
6.000%, 11/01/28 500 402
--------
2,642
--------
HAWAII -- 0.6%
Hawaii State Housing Finance &
Development RB, Series A,
FNMA, AMT
5.750%, 07/01/30 500 456
--------
IDAHO -- 1.3%
Idaho State Health Facilities Authority
RB, Bannock Regional Medical
Center Project
6.125%, 05/01/25 465 407
Nez Perce County, Pollution Control
RB, Potlatch Corporation Project
6.000%, 10/01/24 545 498
--------
905
--------
ILLINOIS -- 6.9%
Bryant, Pollution Control RB,
Central Illinois Light Company
5.900%, 08/01/23 1,000 906
Chicago Board of Education,
School Reform Board GO,
Series A, FGIC
5.500%, 12/01/26 500 461
Chicago, Housing RB, Bryne Mawr/Belle
Project, AMT, GNMA
6.125%, 06/01/39 500 492
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
ILLINOIS -- (CONTINUED)
Illinois State Housing Development
Authority RB, Section 8, HUD
7.000%, 07/01/17 $ 235 $ 235
Illinois State, Sales Tax RB, Series P
6.500%, 06/15/22 1,255 1,319
Jackson and Williamson Counties,
Community High School GO, AMBAC
6.250%, 12/01/15 500 511
Rockford, Faust Landmark Apartments
RB, Series A, MBIA, AMT
6.750%, 01/01/18 1,000 1,035
--------
4,959
--------
INDIANA -- 1.6%
Hammod, Multi-School Building
RB, FGIC
6.125%, 07/15/19 720 711
Indiana State Toll Financial
Authority RB
6.000%, 07/01/13 25 25
Indianapolis, Local Public Improvement
Bond Bank RB, MERC
6.000%, 01/10/20 290 283
Petersburg, Pollution Control RB,
Indianapolis Power & Light
6.625%, 12/01/24 105 109
--------
1,128
--------
IOWA -- 2.3%
Iowa City, Sewer RB, MBIA
5.750%, 07/01/21 1,000 962
Iowa State Finance Authority RB,
Series F, GNMA
5.700%, 01/01/27 485 450
Iowa State Hospital Facility RB,
Series N, FSA
6.250%, 02/15/22 200 202
--------
1,614
--------
KENTUCKY -- 0.7%
Kentucky State Economic
Development RB, Appalachian
Hospital System
5.875%, 10/01/22 500 378
University of Louisville Consolidated
Educational Building RB, Series H
5.875%, 05/01/11 100 103
--------
481
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
35
<PAGE>
JANUARY 31, 2000
Statement of Net Assets
Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
LOUISIANA -- 1.2%
Louisiana State, Stadium & Expo
District RB, Series B, FGIC
5.000%, 07/01/26 $1,000 $ 831
--------
MAINE -- 1.3%
Maine State Housing Authority RB,
Series D2, AMT
5.900%, 11/15/25 1,000 940
--------
MASSACHUSETTS -- 0.8%
Massachusetts State Health &
Educational Facilities Authority
RB, Melrose-Wakefield Hospital,
Series B, ETM, GOH
5.875%, 07/01/18 200 203
Massachusetts State Water Pollution
Abatement Tr Water Pollution
Mwra Prog-Sub-Ser A
6.000%, 08/01/23 400 392
--------
595
--------
MINNESOTA -- 0.7%
Minneapolis & St. Paul Minnesota
Housing & Redevelopment Authority
Health Care Group Health Plan
6.900%, 10/15/22 500 492
--------
MISSOURI -- 1.8%
Boone County, Waterworks System RB,
Public Water Supply District No. 7
5.500%, 05/01/29 500 429
Missouri State Health & Education
Facilities RB, SSM Health Care
Projects, Series B, ETM, MBIA
7.000%, 06/01/15 650 650
Springfield, Public Building
Leasehold RB, FSA
5.900%, 11/01/14 200 204
--------
1,283
--------
NEBRASKA -- 0.2%
Lincoln-Lancaster Counties Public
Building Commission, Tax Supported
Lease Rental, RB
6.000%, 10/15/26 150 149
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NEVADA -- 2.1%
Nevada State GO, Project # 32, ETM
7.000%, 08/01/10 $1,000 $ 1,032
Nevada State Housing Division RB,
Issue C-1, FHA
6.500%, 10/01/16 190 192
Nevada State Housing Division RB,
Saratoga Palms, AMT, E172 FNMA
6.250%, 10/01/16 280 282
--------
1,506
--------
NEW HAMPSHIRE -- 1.7%
Higher Educational & Health Facilities
Authority, Androscoggin Valley
Hospital RB
5.800%, 11/01/27 1,500 1,249
--------
NEW JERSEY -- 0.2%
New Jersey State Health Care Facility
Financing Authority RB, Raritan
Bay Center
7.250%, 07/01/27 140 122
--------
NEW MEXICO -- 1.1%
Carlsbad, Housing RB, Colonial Hillcrest
7.375%, 08/01/27 375 360
Southeastern New Mexico Affordable
Housing RB, Casa Hermosa Apartments
7.250%, 12/01/27 430 393
--------
753
--------
NEW YORK -- 7.2%
New York City Industrial Development
Agency RB
11.250%, 05/01/04 400 412
New York State Dorm Authority
RB, FHA
6.000%, 08/01/36 875 813
New York State Dorm Authority RB,
Menorah Campus, FHA
6.100%, 02/01/37 1,000 950
New York State Ideal Senior Living
Center Housing RB, FHA
5.900%, 08/01/26 500 469
New York State Local Government
Assistance RB, Series A, GO
6.000%, 04/01/24 280 270
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
36
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NEW YORK -- (CONTINUED)
New York State Medical Care
Facilities RB, MBIA
Pre-refunded @ 102 (A)
6.500%, 08/15/24 $ 100 $ 108
New York State Metropolitan Transit
Authority RB, Series C1
5.625%, 07/01/27 1,000 908
New York State Unrefunded Balance
GO, Series E
6.000%, 08/01/26 270 259
Newark-Wayne, Community Hospital RB
7.600%, 09/01/15 485 492
United Nations Development RB,
Series B
5.600%, 07/01/26 500 446
--------
5,127
--------
NORTH CAROLINA -- 3.0%
North Carolina State Eastern Municipal
Power Agency RB, Catawba Electric,
Series B
6.000%, 01/01/20 500 463
North Carolina State Eastern Municipal
Power Agency RB, Series A, ETM
4.000%, 01/01/18 375 300
North Carolina State Eastern Municipal
Power Agency RB, Series A,
Pre-refunded @ 100 (A)
6.000%, 01/01/26 1,000 1,020
North Carolina State Medical Care
Commission, Firsthealth of
Carolinas RB
4.750%, 10/01/26 500 386
--------
2,169
--------
NORTH DAKOTA -- 1.1%
Fargo, Housing RB
7.125%, 02/01/26 255 231
North Dakota State Housing Finance
Agency RB, Series C, AMT
5.950%, 07/01/17 265 259
6.100%, 07/01/28 335 322
--------
812
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
OHIO -- 5.1%
Butler County, Hospital Facility RB,
Middletown Hospital
5.000%, 11/15/28 $ 500 $ 368
Erie County, Franciscan Service RB,
Providence Hospital
6.000%, 01/01/13 1,000 953
Johnstown, Waterworks System RB
6.000%, 12/01/17 250 235
Mason, Tax Increment Financing Rev,
J. W. Harris Development Ltd Project
5.300%, 12/01/18 600 525
Montgomery County, Hospital RB,
Grandview Hospital & Medical Center
5.250%, 12/01/00 675 681
Montgomery County, Special Assessment
RB, Montgomery Woods Project
6.000%, 12/01/17 76 75
Oak Hills, Local School District GO,
Series A
5.700%, 12/01/25 500 469
Perrysburg, School District GO,
Exempt Village School District
5.350%, 12/01/25 400 359
--------
3,665
--------
OREGON -- 0.6%
Oregon State, Economic Development RB,
Georgia Pacifice Corporation Project
Series 183, AMT
5.700%, 12/01/25 500 429
--------
PENNSYLVANIA -- 7.2%
Allegheny County, Hospital
Development Authority RB,
St. Francis Medical Center
5.750%, 05/15/17 500 414
Allentown, Hospital Authority RB,
Sacred Heart Hospital of Allentown,
Series A
6.750%, 11/15/14 500 478
Dauphin County, General Authority
Office RB, Forum Pl, Series A
6.000%, 01/15/25 500 433
Delaware County, Hospital Authority
RB, Crozer-Chester Medical Center
6.000%, 12/15/20 500 426
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
37
<PAGE>
JANUARY 31, 2000
Statement of Net Assets
Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
PENNSYLVANIA -- (CONTINUED)
Pennsylvania State GO
9.000%, 10/01/00 $ 100 $ 100
Pennsylvania State Housing Finance
Agency RB, Series 39B, AMT
6.875%, 10/01/24 750 766
Pennsylvania State Housing Finance
Agency RB, Series 59A, AMT
5.800%, 10/01/29 1,250 1,152
Scranton-Lackawanna, Health &
Welfare Authority RB, Moses
Taylor Hospital Project
6.250%, 07/01/20 500 423
Warren County, Hospital Authority RB,
Series A
6.900%, 04/01/11 500 499
Washington County, Canonsburg
General Hospital Authority RB
7.350%, 06/01/13 500 471
--------
5,162
--------
PUERTO RICO -- 1.4%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 1,000 979
--------
RHODE ISLAND -- 2.0%
Rhode Island Depositors Economic
Protection Corporation, Special
Obligation RB, Series A, ETM
6.375%, 08/01/22 325 342
Rhode Island State Housing & Mortgage
Finance RB, Series 23, AMT
5.950%, 04/01/29 1,000 940
Rhode Island State, Convention Center
Authority RB, Series A, AMBAC
5.750%, 05/15/20 150 144
--------
1,426
--------
SOUTH CAROLINA -- 1.4%
South Carolina State Connector 2000
Association RB, Toll Road Project, (B)
0.000%, 01/01/31 500 43
University of South Carolina RB, MBIA
5.750%, 06/01/26 1,000 956
--------
999
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SOUTH DAKOTA -- 0.7%
South Dakota State Health &
Education Facilities RB, Huron
Regional Medical Center
7.250%, 04/01/20 $ 500 $ 494
--------
TENNESSEE -- 0.6%
Nashville & Davidson Counties, Health
& Education Facility RB, Open
Arms Development Center, ASSETG
5.000%, 08/01/12 500 459
--------
TEXAS -- 3.2%
Beaumont, Multi-Family Housing RB,
Park Shadows Project, FHA
6.450%, 06/15/22 500 484
Carroll, Independent School
District GO, PSFG
6.750%, 08/15/20 325 355
Denison, Hospital Authority RB,Texoma
Medical Center Project
6.125%, 08/15/17 700 579
Harris County, Industrial Development
RB, Gatx Terminals Project
6.950%, 02/01/22 500 514
Socorro, Independent School District GO
5.750%, 02/15/21 200 207
Texarkana, Health Facilities RB,
Wadley Regional Medical Center,
Series B, MBIA
6.000%, 10/01/17 160 160
--------
2,299
--------
UTAH -- 3.3%
Provo City, Housing Authority RB,
Lookout Pointe Apartments, GNMA
5.800%, 07/20/22 500 471
Salt Lake City, Water RB, FGIC
4.100%, 08/01/04 275 243
Salt Lake County, Westminster College
Project, RB
5.750%, 10/01/27 410 359
Utah State Building Ownership Authority
Lease, RB, Series PG-C, FSA
5.500%, 05/15/19 250 235
Utah State Housing Finance Agency
RB, FHA
6.800%, 01/01/12 95 97
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38
<PAGE>
THE ACHIEVEMENT FUNDS
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
UTAH -- (CONTINUED)
Weber County, Municipal Building
Authority RB, MBIA
5.750%, 12/15/19 $1,000 $ 958
--------
2,363
--------
VERMONT -- 1.8%
Vermont State Housing Finance
Agency RB, Series 9, AMT, MBIA
6.000%, 05/01/37 365 343
Vermont State Student Assistance
Financing RB, Series B, AMT, FSA
6.700%, 12/15/12 900 942
--------
1,285
--------
VIRGINIA -- 1.3%
Chesapeake Bay Bridge and Tunnel
Commission, District RB
5.500%, 07/01/25 1,000 929
--------
WASHINGTON -- 4.5%
King County, GO, MBIA
6.125%, 01/01/33 110 108
Seattle Washington Water Systems,
RB, Series B, FGIC
6.000%, 07/01/29 500 481
Seattle, Low Income Housing Assistance
Authority RB, Kin On Project,
Series A, GNMA
7.400%, 11/20/36 1,000 1,096
Snohomish County, Public Utility RB,
District # 001, FGIC
6.000%, 01/01/18 220 216
Stevens County, Water Power RB,
Kettle Project
6.000%, 12/01/23 110 102
Washington State Development RB,
Tramco Project, AMT
6.000%, 08/01/23 820 746
Washington State, General Obligation,
Series B & At-7
6.400%, 06/01/17 250 264
Washington State, Housing Finance RB,
Seattle University Auxiliary Services
Project, BANKAM
5.300%, 07/01/31 250 214
--------
3,227
--------
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
WEST VIRGINIA -- 0.2%
West Virginia State, Hospital
Financing Authority RB, Fairmont
General Hospital, GOH
6.750%, 03/01/14 $ 140 $ 134
--------
WISCONSIN -- 2.4%
Wisconsin State GO, Series D, AMT
5.800%, 05/01/20 145 136
Wisconsin State Health & Education
Facilities RB, Franciscan
Skemp Medical Center
6.125%, 11/15/15 1,000 1,011
Wisconsin State Housing & Economic
Development RB, Series A, GO
6.000%, 09/01/15 550 542
--------
1,689
--------
WYOMING -- 2.6%
Jackson, National Rural Utilities RB,
Gas Supply, Series B, AMT
5.875%, 05/01/26 500 465
Wyoming State Community Development
Authority RB, Series 4, AMT
5.850%, 06/01/28 425 392
Wyoming State Community Development
Authority RB, Series A, FHA
6.000%, 06/01/23 1,000 979
--------
1,836
--------
TOTAL MUNICIPAL BONDS
(Cost $74,808) 68,655
--------
MUTUAL FUNDS -- 1.4%
Managed Municipals Portfolio Fund 55,000 516
Morgan Stanley Dean Witter
Municipal Income II 25,000 203
Morgan Stanley Dean Witter
Municipal Premium Income 40,000 308
--------
TOTAL MUTUAL FUNDS
(Cost $1,207) 1,027
--------
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
39
<PAGE>
JANUARY 31, 1999
Statement of Net Assets
Municipal Bond Fund (concluded)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS -- 1.1%
SEI Institutional Tax-Free Portfolio $768 $ 768
--------
TOTAL CASH EQUIVALENTS
(Cost $768) 768
--------
TOTAL INVESTMENTS -- 98.5%
(Cost $76,783) 70,450
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.5% 1,105
--------
NET ASSETS:
Portfolio Shares of Institutional
Class (unlimited authorization
-- no par value) based on
6,955,032 outstanding shares
of beneficial interest 69,807
Portfolio Shares of Retail
Class A (unlimited authorization
-- no par value) based
on 523,451 outstanding shares
of beneficial interest 5,247
Portfolio Shares of Retail
Class B (unlimited authorization
-- no par value) based on
300,021 outstanding shares
of beneficial interest 3,050
Accumulated net realized loss on investments (216)
Net unrealized depreciation on investments (6,333)
--------
TOTAL NET ASSETS -- 100.0% $71,555
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $9.20
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS A $9.20
========
MAXIMUM OFFERING PRICE PER SHARE --
RETAIL CLASS A (9.20 / 96%) $9.58
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- RETAIL CLASS B $9.20
========
(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
ASSETG -- ASSET GUARANTY
BANKAM -- BANK OF AMERICA
ETM -- ESCROWED TO MATURITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA -- FINANCIAL SECURITY ASSURANCE
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
GOH -- ENERAL OBLIGATION OF HOSPITAL
HUD -- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
MERC -- MERCHANTS NATIONAL B&T
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
PSFG -- PERMANENT SCHOOL FUND GUARANTEED
RB -- REVENUE BOND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
40
<PAGE>
FOR THE YEAR ENDED JANUARY 31, 2000 THE ACHIEVEMENT FUNDS
<TABLE>
<CAPTION>
Statements of Operations (000)
- ---------------------------------------------------------------------------------------------------------------------
SHORT IDAHO
INTERMEDIATE TERM MUNICIPAL MUNICIPAL
EQUITY BALANCED TERM BOND BOND BOND BOND
FUND FUND FUND FUND FUND FUND
======= ========= ============ ====== ========= ==========
INCOME:
<S> <C> <C> <C> <C> <C> <C>
Dividend Income $ 2,363 $ 1,345 $ -- $ -- $ -- $ --
Interest Income 253 4,698 10,820 2,151 2,023 4,334
------- ------- -------- ------ ------- -------
Total Income 2,616 6,043 10,820 2,151 2,023 4,334
------- ------- -------- ------ ------- -------
EXPENSES:
Administrative Fees 580 441 333 70 100 152
Less: Waiver of Administrative Fees -- -- -- -- (23) --
Investment Advisory Fees 2,146 1,631 999 210 231 455
Less: Waiver of Investment
Advisory Fees (386) (337) (295) (111) (92) (139)
Custodian/Transfer Agent Fees 58 52 55 48 48 50
Professional Fees 49 54 37 7 7 14
Pricing Fees 11 9 8 2 2 3
Registration & Filing Fees 81 74 59 19 4 14
Printing Fees 40 31 30 6 6 11
Trustee Fees 19 15 14 3 3 6
Distribution Fees - Retail A 31 10 4 1 27 16
Distribution Service Fees - Retail B 26 18 -- -- 21 25
Less: Waiver of Distribution
Service Fees - Retail B -- -- -- -- (2) (2)
Interest and Other Expenses 2 2 1 -- -- --
Amortization of Deferred
Organizational Costs 11 12 7 8 3 3
------- ------- -------- ------ ------- -------
Total Expenses 2,668 2,012 1,252 263 335 608
------- ------- -------- ------ ------- -------
Net Investment Income (Loss) (52) 4,031 9,568 1,888 1,688 3,726
------- ------- -------- ------ ------- -------
Net Realized Gain (Loss) on
Investments 34,174 16,943 (686) (96) 307 (215)
Net Change in Unrealized
(Depreciation) of Investments (5,477) (7,944) (13,228) (740) (4,057) (8,145)
------- ------- -------- ------ ------- -------
Net Realized and Unrealized Gain
(Loss) on Investments 28,697 8,999 (13,914) (836) (3,750) (8,360)
------- ------- -------- ------ ------- -------
Increase (Decrease) in Net Assets
Resulting from Operations $28,645 $13,030 $ (4,346) $1,052 $(2,062) $(4,634)
======= ======= ======== ====== ======= =======
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
41
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets (000)
- ----------------------------------------------------------------------------------------------------------------
EQUITY BALANCED
FUND FUND
==================== ===================
2/1/99 2/1/98 2/1/99 2/1/98
TO TO TO TO
1/31/00 1/31/99 1/31/00 1/31/99
-------- -------- -------- --------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (52) $ 804 $ 4,031 $ 3,991
Net Realized Gain (Loss) on Investments 34,174 7,176 16,943 4,336
Net Change in Unrealized
Appreciation (Depreciation) of Investments (5,477) 47,621 (7,944) 22,563
-------- -------- -------- --------
Increase (Decrease) in Net Assets
Resulting From Operations 28,645 55,601 13,030 30,890
-------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class -- (898) (3,893) (3,959)
Retail Class A -- (20) (66) (81)
Retail Class B (1) -- (1) (15) (7)
Capital Gains:
Institutional Class (22,333) (10,727) (10,917) (11,946)
Retail Class A (1,024) (476) (209) (260)
Retail Class B (1) (223) (80) (107) (73)
-------- -------- -------- --------
Total Distributions (23,580) (12,202) (15,207) (16,326)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 53,201 67,365 10,018 26,031
Reinvestment in Lieu of Cash Distributions 6,462 3,277 14,758 15,867
Cost of Shares Redeemed (52,486) (37,215) (24,348) (16,968)
-------- -------- -------- --------
Total Institutional Class Transactions 7,177 33,427 428 24,930
-------- -------- -------- --------
Retail Class A:
Proceeds from Shares Issued 1,995 3,075 561 910
Reinvestment in Lieu of Cash Distributions 1,018 491 270 335
Cost of Shares Redeemed (2,327) (2,990) (1,086) (1,022)
-------- -------- -------- --------
Total Retail Class A Transactions 686 576 (255) 223
-------- -------- -------- --------
Retail Class B (1):
Proceeds from Shares Issued 1,161 1,985 865 1,364
Reinvestment in Lieu of Cash Distributions 204 79 118 80
Cost of Shares Redeemed (615) (76) (391) (22)
-------- -------- -------- --------
Total Retail Class B Transactions 750 1,988 592 1,422
-------- -------- -------- --------
Net Increase (Decrease) in Net
Assets from Share Transactions 8,613 35,991 765 26,575
-------- -------- -------- --------
Total Increase (Decrease) in Net Assets 13,678 79,390 (1,412) 41,139
NET ASSETS:
Beginning of Period 284,646 205,256 220,759 179,620
-------- -------- -------- --------
End of Period $298,324 $284,646 $219,347 $220,759
======== ======== ======== ========
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 2,875 4,301 711 1,965
Shares Issued in Lieu of Cash Distributions 346 228 1,042 1,238
Shares Redeemed (2,815) (2,275) (1,727) (1,257)
-------- -------- -------- --------
Total Institutional Class Share Transactions 406 2,254 26 1,946
-------- -------- -------- --------
Retail Class A
Shares Issued 110 191 40 67
Shares Issued in Lieu of Cash Distributions 55 34 19 26
Shares Redeemed (125) (191) (77) (79)
-------- -------- -------- --------
Total Retail Class A Share Transactions 40 34 (18) 14
-------- -------- -------- --------
Retail Class B (1)
Shares Issued 64 121 62 102
Shares Issued in Lieu of Cash Distributions 11 6 8 6
Shares Redeemed (33) (5) (28) (2)
-------- -------- -------- --------
Total Retail Class B Share Transactions 42 122 42 106
-------- -------- -------- --------
Net Increase (Decrease) in Share Transactions 488 2,410 50 2,066
======== ======== ======== ========
(1) COMMENCED OPERATIONS ON MAY 8, 1998.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
42
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE ACHIEVEMENT FUNDS
-----------------------------------------------------------------------------------------------------------------
INTERMEDIATE SHORT TERM IDAHO MUNICIPAL
TERM BOND FUND BOND FUND MUNICIPAL BOND BOND FUND
====================== ===================== ===================== ====================
2/1/99 2/1/98 2/1/99 2/1/98 2/1/99 2/1/98 2/1/99 2/1/98
TO TO TO TO TO TO TO TO
1/31/00 1/31/99 1/31/00 1/31/99 1/31/00 1/31/99 1/31/00 1/31/99
-------- -------- ------- ------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9,568 $ 9,497 $ 1,888 $ 2,523 $ 1,688 $ 1,581 $ 3,726 $ 3,423
(686) 631 (96) (37) 307 175 (215) 1,093
(13,228) 1,632 (740) (113) (4,057) 304 (8,145) (428)
-------- -------- ------- ------- ------- -------- ------- --------
(4,346) 11,760 1,052 2,373 (2,062) 2,060 (4,634) 4,088
-------- -------- ------- ------- ------- -------- ------- --------
(9,489) (9,367) (1,880) (2,515) (1,157) (1,139) (3,332) (2,984)
(79) (129) (8) (8) (456) (420) (308) (389)
-- -- -- -- (76) (21) (99) (37)
-- -- -- -- (175) (115) (114) (1,076)
-- -- -- -- (73) (52) (9) (126)
-- -- -- -- (16) (5) (4) (34)
-------- -------- ------- ------- ------- -------- ------- --------
(9,568) (9,496) (1,888) (2,523) (1,953) (1,752) (3,866) (4,646)
-------- -------- ------- ------- ------- -------- ------- --------
42,116 41,264 9,166 10,145 4,616 9,011 15,133 16,704
1,440 1,585 1,148 1,135 28 22 114 31
(38,746) (38,279) (15,554) (24,033) (7,530) (8,364) (12,005) (11,037)
-------- -------- ------- ------- ------- -------- ------- --------
4,810 4,570 (5,240) (12,753) (2,886) 669 3,242 5,698
-------- -------- ------- ------- ------- -------- ------- --------
234 903 15 42 273 3,022 1,771 851
78 126 8 7 529 465 317 514
(734) (2,093) (8) (104) (2,593) (1,167) (3,777) (4,024)
-------- -------- ------- ------- ------- -------- ------- --------
(422) (1,064) 15 (55) (1,791) 2,320 (1,689) (2,659)
-------- -------- ------- ------- ------- -------- ------- --------
-- -- -- -- 1,187 1,419 999 2,195
-- -- -- -- 70 15 90 68
-- -- -- -- (478) (103) (287) (15)
-------- -------- ------- ------- ------- -------- ------- --------
-- -- -- -- 779 1,331 802 2,248
-------- -------- ------- ------- ------- -------- ------- --------
4,388 3,506 (5,225) (12,808) (3,898) 4,320 2,355 5,287
-------- -------- ------- ------- ------- -------- ------- --------
(9,526) 5,770 (6,061) (12,958) (7,913) 4,628 (6,145) 4,729
170,288 164,518 38,099 51,057 40,002 35,374 77,700 72,971
-------- -------- ------- ------- ------- -------- ------- --------
$160,762 $170,288 $32,038 $38,099 $32,089 $ 40,002 $71,555 $ 77,700
======== ======== ======= ======= ======= ======== ======= ========
4,105 3,873 926 1,012 441 835 1,543 1,620
141 149 116 113 2 2 12 3
(3,796) (3,589) (1,571) (2,397) (737) (777) (1,226) (1,066)
-------- -------- ------- ------- ------- -------- ------- --------
450 433 (529) (1,272) (294) 60 329 557
-------- -------- ------- ------- ------- -------- ------- --------
23 85 1 4 25 279 175 82
8 12 1 1 51 43 32 50
(72) (196) (1) (10) (253) (108) (386) (388)
-------- -------- ------- ------- ------- -------- ------- --------
(41) (99) 1 (5) (177) 214 (179) (256)
-------- -------- ------- ------- ------- -------- ------- --------
-- -- -- -- 110 131 103 212
-- -- -- -- 7 1 9 7
-- -- -- -- (47) (9) (29) (2)
-------- -------- ------- ------- ------- -------- ------- --------
-- -- -- -- 70 123 83 217
-------- -------- ------- ------- ------- -------- ------- --------
409 334 (528) (1,277) (401) 397 233 518
======== ======== ======= ======= ======= ======== ======= ========
43
</TABLE>
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period or Year
NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET NET RATIO
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS,END OF EXPENSES
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS(LOSSES) END TOTAL OF PERIOD TO AVERAGE
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000) NET ASSETS
--------- ---------- ------------ ------------- -------------- ---------- ------- ---------- -----------
EQUITY FUND
===========
INSTITUTIONAL CLASS:
For the years ended
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
January 31, 2000*** $18.03 -- -- (1.51) 1.82 $18.34 10.06% $282,407 0.90%
January 31, 1999 $15.34 0.06 (0.07) (0.72) 3.42 $18.03 24.06 $270,397 0.90%
January 31, 1998 $14.03 0.10 (0.10) (1.68) 2.99 $15.34 22.14% $195,500 0.90%
January 31, 1997 $12.64 0.11 (0.11) (0.94) 2.33 $14.03 20.00% $177,234 0.90%
January 31, 1996 $10.24 0.17 (0.17) (0.72) 3.12 $12.64 32.55% $150,957 0.90%
RETAIL CLASS A:
For the year ended
January 31, 2000*** $18.01 (0.05) -- (1.51) 1.81 $18.26 9.73% $ 12,959 1.15%
January 31, 1999 $15.34 0.02 (0.03) (0.72) 3.40 $18.01 23.64% $ 12,064 1.15%
January 31, 1998 $14.04 0.06 (0.06) (1.68) 2.98 $15.34 21.78% $ 9,756 1.15%
January 31, 1997 $12.65 0.08 (0.08) (0.94) 2.33 $14.04 19.72% $ 4,099 1.15%
For the period ended
January 31, 1996(1)**$10.52 0.14 (0.15) (0.72) 2.86 $12.65 32.34% $ 1,769 1.15%
RETAIL CLASS B:
For the year ended
January 31, 2000*** $17.93 (0.18) -- (1.51) 1.77 $18.01 8.82% $ 2,958 1.90%
For the period ended
January 31,1999(2)**$17.26 (0.07) (0.01) (0.72) 1.47 $17.93 10.97%* $ 2,185 1.90%
BALANCED FUND
=============
INSTITUTIONAL CLASS:
For the years ended
January 31, 2000*** $13.99 0.26 (0.26) (0.74) 0.61 $13.86 6.15% $213,251 0.90%
January 31, 1999 $13.10 0.29 (0.29) (0.86) 1.75 $13.99 16.75% $214,939 0.90%
January 31, 1998 $12.01 0.32 (0.30) (0.64) 1.71 $13.10 17.28% $175,751 0.90%
January 31, 1997 $11.79 0.34 (0.35 (0.78) 1.01 $12.01 12.03% $156,315 0.90%
January 31, 1996 $10.20 0.39 (0.39 (0.42) 2.01 $11.79 24.15% $147,357 0.90%
RETAIL CLASS A:
For the years ended
January 31, 2000*** $13.97 0.22 (0.22) (0.74) 0.61 $13.84 5.91% $ 4,047 1.15%
January 31, 1999 $13.08 0.25 (0.26) (0.86) 1.76 $13.97 16.50% $ 4,339 1.15%
January 31, 1998 $12.00 0.28 (0.27) (0.64) 1.71 $13.08 16.92% $ 3,869 1.15%
January 31, 1997 $11.78 0.31 (0.32) (0.78) 1.01 $12.00 11.81% $ 2,875 1.15%
For the period ended
January 31,1996(1)**$10.34 0.32 (0.31) (0.42) 1.85 $11.78 23.88%* $ 1,664 1.15%
RETAIL CLASS A:
For the year ended
January 31, 2000*** $13.95 0.12 (0.12) (0.74) 0.60 $13.81 5.07% $ 2,049 1.90%
For the period ended
January 31,
1999(2)** $14.09 0.11 (0.12) (0.87) 0.74 $13.95 7.99%* $ 1,481 1.90%
</TABLE>
RATIO RATIO OF
OF EXPENSES NET INCOME
TO AVERAGE RATIO OF TO AVERAGE
NET ASSETS NET INCOME NET ASSETS PORTFOLIO
(EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
WAIVERS) NET ASSETS WAIVERS) RATE
----------- ---------- ---------- ---------
EQUITY FUND
===========
INSTITUTIONAL CLASS:
For the years ended
January 31, 2000*** 1.03% --% (0.13)% 40.22%
January 31, 1999 1.06% 0.36% 0.20% 74.99%
January 31, 1998 1.00% 0.63% 0.53% 36.68%
January 31, 1997 1.07% 0.81% 0.64% 97.14%
January 31, 1996 1.14% 1.43% 1.19% 103.85%
RETAIL CLASS A:
For the year ended
January 31, 2000*** 1.28% (0.25)% (0.38)% 40.22%
January 31, 1999 1.31% 0.12% (0.04)% 74.99%
January 31, 1998 1.28% 0.33% 0.20% 36.68%
January 31, 1997 1.31% 0.52% 0.36% 97.14%
For the period ended
January 31, 1996(1) 1.37% 0.99% 0.77% 103.85%
RETAIL CLASS B:
For the year ended
January 31, 2000*** 2.03% (1.00)% (1.13)% 40.22%
For the period ended
January 31, 1999(2) 2.10% (0.85)% (1.05)% 74.99%
BALANCED FUND
=============
INSTITUTIONAL CLASS:
For the years ended
January 31, 2000*** 1.05% 1.84% 1.69% 33.27%
January 31, 1999 1.05% 2.14% 1.99% 54.88%
January 31, 1998 1.02% 2.49% 2.37% 30.91%
January 31, 1997 1.07% 2.90% 2.73% 68.11%
January 31, 1996 1.14% 3.48% 3.24% 59.74%
RETAIL CLASS A:
For the years ended
January 31, 2000*** 1.30% 1.59% 1.44% 33.27%
January 31, 1999 1.30% 1.90% 1.75% 54.88%
January 31, 1998 1.27% 2.23% 2.11% 30.91%
January 31, 1997 1.32% 2.64% 2.47% 68.11%
For the period ended
January 31, 1996(1) 1.38% 3.06% 2.83% 59.74%
RETAIL CLASS B:
For the year ended
January 31, 2000*** 2.05% 0.84% 0.69% 33.27%
For the period ended
January 31, 1999(2)** 2.07% 1.00% 0.83% 54.88%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
44
<PAGE>
THE ACHIEVEMENT FUNDS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NET NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND ASSET NET RATIO
VALUE, NET FROM NET FROM UNREALIZED VALUE, ASSETS,END OF EXPENSES
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS(LOSSES) END OF TOTAL OF PERIOD TO AVERAGE
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS PERIOD RETURN+ (000) NET ASSETS
--------- ---------- ------------ ------------- -------------- ---------- ------- ---------- -----------
INTERMEDIATE TERM
BOND FUND
=================
INSTITUTIONAL CLASS:
For the years ended
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
January 31, 2000*** $10.77 0.59 (0.59) -- (0.86) $ 9.91 (2.54)% $159,564 0.75%
January 31, 1999 $10.63 0.61 (0.61) -- 0.14 $10.77 7.25% $168,545 0.75%
January 31, 1998 $10.37 0.62 (0.62) -- 0.26 $10.63 8.82% $161,742 0.75%
January 31, 1997 $10.79 0.62 (0.62) -- (0.42) $10.37 2.06% $134,645 0.75%
January 31, 1996 $10.09 0.71 (0.70) -- 0.69 $10.79 13.62% $115,307 0.75%
RETAIL CLASS A:
For the years ended
January 31, 2000*** $10.79 0.56 (0.57) -- (0.85) $ 9.93 (2.78)% $ 1,198 1.00%
January 31, 199 $10.66 0.58 (0.59) -- 0.14 $10.79 6.91% $ 1,743 1.00%
January 31, 1998 $10.40 0.60 (0.60) -- 0.26 $10.66 8.60% $ 2,776 1.00%
January 31, 199 $10.82 0.60 (0.60) -- (0.42) $10.40 1.80% $ 2,730 1.00%
For the period ended
January 31,
1996(1)** $10.16 0.56 (0.55) -- 0.65 $10.82 13.49%* $ 963 1.00%
SHORT TERM
BOND FUND
==========
INSTITUTIONAL CLASS:
For the years ended
January 31, 2000*** $10.02 0.54 (0.54) -- (0.24) $ 9.78 3.02% $31,879 0.75%
January 31, 1999 $10.05 0.55 (0.55) -- (0.03) $10.02 5.33% $37,951 0.75%
January 31, 1998 $10.01 0.57 (0.57) -- 0.04 $10.05 6.25% $50,853 0.75%
January 31, 199 $10.18 0.60 (0.60) -- (0.17) $10.01 4.40% $65,328 0.75%
January 31, 1996 $10.02 0.67 (0.65) -- 0.14 $10.18 7.80% $75,632 0.75%
RETAIL CLASS A:
For the years ended
January 31, 2000*** $10.00 0.51 (0.51) -- (0.23) $ 9.77 2.87% $ 159 1.00%
January 31, 199 $10.04 0.52 (0.52) -- (0.04) $10.00 4.94% $ 148 1.00%
January 31, 1998 $10.00 0.55 (0.55) -- 0.04 $10.04 6.04% $ 204 1.00%
January 31, 1997 $10.18 0.57 (0.58) -- (0.17) $10.00 4.04% $ 443 1.00%
For the period ended
January 31,
1996(1)** $10.03 0.53 (0.52) -- 0.14 $10.18 7.55%* $ 39 1.00%
</TABLE>
RATIO RATIO OF
OF EXPENSES NET INCOME
TO AVERAGE RATIO OF TO AVERAGE
NET ASSETS NET INCOME NET ASSETS PORTFOLIO
(EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
WAIVERS) NET ASSETS WAIVERS) RATE
----------- ---------- ---------- ---------
INTERMEDIATE TERM
BOND FUND
=================
INSTITUTIONAL CLASS:
For the years ended
January 31, 2000*** 0.93% 5.75% 5.57% 21.46%
January 31, 1999 0.91% 5.72% 5.55% 28.03%
January 31, 1998 0.87% 5.99% 5.87% 20.91%
January 31, 1997 0.95% 6.02% 5.82% 21.23%
January 31, 1996 1.02% 6.14% 5.87% 85.16%
RETAIL CLASS A:
For the years ended
January 31, 2000*** 1.18% 5.49% 5.31% 21.46%
January 31, 1999 1.15% 5.48% 5.34% 28.03%
January 31, 1998 1.11% 5.75% 5.64% 20.91%
January 31, 1997 1.18% 5.76% 5.58% 21.23%
For the period ended
January 31, 1996(1)** 1.26% 5.74% 5.48% 85.16%
SHORT TERM
BOND FUND
==========
INSTITUTIONAL CLASS:
For the years ended
January 31, 2000*** 1.07% 5.41% 5.09% 57.49%
January 31, 1999 1.01% 5.50% 5.24% 26.51%
January 31, 1998 0.95% 5.68% 5.48% 48.90%
January 31, 1997 0.96% 6.00% 5.79% 40.80%
January 31, 1996 0.99% 6.11% 5.87% 83.64%
RETAIL CLASS A:
For the years ended
January 31, 2000*** 1.32% 5.16% 4.84% 57.49%
January 31, 1999 1.25% 5.25% 5.00% 26.51%
January 31, 1998 1.18% 5.43% 5.25% 48.90%
January 31, 1997 1.20% 5.74% 5.54% 40.80%
For the period ended
January 31, 1996(1)** 1.23% 5.75% 5.52% 83.64%
* 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.
45
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period or Year
NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET NET RATIO
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS,END OF EXPENSES
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END TOTAL OF PERIOD TO AVERAGE
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000) NET ASSETS
--------- ---------- ------------ ------------- -------------- ---------- ------- ---------- -----------
IDAHO MUNICIPAL
BOND FUND
===============
INSTITUTIONAL CLASS:
For the years ended
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
January 31, 2000*** $10.91 0.47 (0.47) (0.08) (1.01) $ 9.82 (5.11)% $21,396 0.75%
January 31, 1999 $10.82 0.47 (0.47) (0.05) 0.14 $10.91 5.76% $26,961 0.75%
January 31, 1998 $10.41 0.47 (0.47) (0.04) 0.45 $10.82 9.06% $26,093 0.75%
January 31, 1997 $10.80 0.46 (0.46) (0.06) (0.33) $10.41 1.31% $27,487 0.75%
January 31, 1996 $10.13 0.52 (0.51) (0.12) 0.78 $10.80 12.68% $25,873 0.75%
RETAIL CLASS A:
For the years ended
January 31, 2000*** $10.93 0.44 (0.45) (0.08) (0.99) $ 9.85 (5.24)% $ 8,790 1.00%
January 31, 1999 $10.85 0.45 (0.45) (0.05) 0.13 $10.93 5.43% $11,695 1.00%
January 31, 1998 $10.44 0.45 (0.45) (0.04) 0.45 $10.85 8.84% $ 9,281 1.00%
January 31, 1997 $10.83 0.44 (0.44) (0.06) (0.33) $10.44 1.05% $ 5,475 1.00%
For the period ended
January 31,
1996(1)** $10.21 0.41 (0.40) (0.12) 0.73 $10.83 12.60%* $ 3,109 1.00%
RETAIL CLASS B:
For the year ended
January 31, 2000*** $10.94 0.37 (0.37) (0.08) (1.00) $ 9.86 (5.87)% $ 1,903 1.65%
For the period ended
January 31,
1999(2)** $10.69 0.27 (0.27) (0.05) 0.30 $10.94 5.37%* $ 1,346 1.75%
</TABLE>
RATIO RATIO OF
OF EXPENSES NET INCOME
TO AVERAGE RATIO OF TO AVERAGE
NET ASSETS NET INCOME NET ASSETS PORTFOLIO
(EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
WAIVERS) NET ASSETS WAIVERS) RATE
----------- ---------- ---------- ---------
IDAHO MUNICIPAL
BOND FUND
===============
INSTITUTIONAL CLASS:
For the years ended
January 31, 2000*** 1.05% 4.51% 4.21% 16.35%
January 31, 1999 1.07% 4.35% 4.03% 12.90%
January 31, 1998 1.10% 4.47% 4.12% 17.64%
January 31, 1997 1.24% 4.40% 3.91% 29.13%
January 31, 1996 1.35% 4.52% 3.92% 58.94%
RETAIL CLASS A:
For the years ended
January 31, 2000*** 1.30% 4.26% 3.96% 16.35%
January 31, 1999 1.32% 4.10% 3.78% 12.90%
January 31, 1998 1.37% 4.22% 3.85% 17.64%
January 31, 1997 1.47% 4.15% 3.68% 29.13%
For the period ended
January 31, 1996(1)** 1.58% 4.18% 3.60% 58.94%
RETAIL CLASS B:
For the year ended
January 31, 2000*** 2.05% 3.64% 3.24% 16.35%
For the period ended
January 31, 1999(2)** 2.07% 3.32% 3.00% 12.90%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
46
<PAGE>
<TABLE>
<CAPTION>
THE ACHIEVEMENT FUNDS
- -----------------------------------------------------------------------------------------------------------------------------------
NET
ASSET DISTRIBUTIONS DISTRIBUTIONS REALIZED AND NET NET RATIO
VALUE, NET FROM NET FROM UNREALIZED ASSET VALUE, ASSETS,END OF EXPENSES
BEGINNING INVESTMENT INVESTMENT CAPITAL GAINS (LOSSES) END TOTAL OF PERIOD TO AVERAGE
OF PERIOD INCOME INCOME GAINS ON INVESTMENTS OF PERIOD RETURN+ (000) NET ASSETS
--------- ---------- ------------ ------------- -------------- ---------- ------- ---------- -----------
MUNICIPAL
BOND FUND
=========
INSTITUTIONAL CLASS:
For the years ended
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
January 31, 2000*** $10.30 0.49 (0.49) (0.02) (1.08) $ 9.20 (5.94)% $63,982 0.75%
January 31, 1999 $10.38 0.49 (0.49) (0.18) 0.10 $10.30 5.88% $68,239 0.75%
January 31, 1998 $10.02 0.48 (0.48) (0.12) 0.48 $10.38 9.90% $63,028 0.75%
For the period ended
January 31, 1997(3)**$10.00 0.12 (0.12) -- 0.02 $10.02 1.34%* $53,067 0.75%
RETAIL CLASS A:
For the years ended
January 31, 2000*** $10.29 0.46 (0.47) (0.02) (1.06) $ 9.20 (6.10)% $ 4,814 1.00%
January 31, 1999 $10.38 0.47 (0.47) (0.18) 0.09 $10.29 5.48% $ 7,226 1.00%
January 31, 1998 $10.01 0.46 (0.46) (0.12) 0.49 $10.38 9.78% $ 9,943 1.00%
For the period ended
January 31, 1997(4)**$10.01 0.15 (0.15) -- -- $10.01 1.48%* $ 4,895 1.00%
RETAIL CLASS B:
For the year ended
January 31, 2000*** $10.30 0.40 (0.40) (0.02) (1.08) $ 9.20 (6.81)% $ 2,759 1.65%
For the period ended
January 31, 1999(2)**$10.27 0.30 (0.30) (0.18) 0.21 $10.30 4.87%* $ 2,235 1.75%
</TABLE>
RATIO RATIO OF
OF EXPENSES NET INCOME
TO AVERAGE RATIO OF TO AVERAGE
NET ASSETS NET INCOME NET ASSETS PORTFOLIO
(EXCLUDING TO AVERAGE (EXCLUDING TURNOVER
WAIVERS) NET ASSETS WAIVERS) RATE
----------- ---------- ---------- ---------
MUNICIPAL
BOND FUND
=========
INSTITUTIONAL CLASS:
For the years ended
January 31, 2000*** 0.93% 4.97% 4.79% 15.96%
January 31, 1999 0.95% 4.79% 4.59% 46.00%
January 31, 1998 1.05% 4.72% 4.42% 93.18%
For the period ended
January 31, 1997(3)** 1.07% 4.58% 4.26% 19.21%
RETAIL CLASS A:
For the years ended
January 31, 2000*** 1.18% 4.69% 4.51% 15.96%
January 31, 1999 1.19% 4.53% 4.34% 46.00%
January 31, 1998 1.32% 4.48% 4.16% 93.18%
For the period ended
January 31, 1997(4)** 1.29% 4.35% 4.06% 19.21%
RETAIL CLASS B:
For the year ended
January 31, 2000*** 1.93% 4.08% 3.80% 15.96%
For the period ended
January 31, 1999(2)** 1.98% 3.84% 3.61% 46.00%
* 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.
47
<PAGE>
JANUARY 31, 2000
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.
48
<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
distribution and service fees, are borne by that class. Income, other expenses
and accumulated realized and unrealized gains and losses of a Fund are allocated
to the respective class on the basis of the relative net assets each day.
MANAGEMENT ESTIMATES -- The preparation of financial statements in accordance
with generally accepted accounting principles requires management to make
certain estimates and assumptions that may affect the reported amounts and
disclosures in the financial statements. Actual results could differ from those
estimates.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income are
declared and paid on a quarterly basis for the Equity Fund. The Balanced Fund
declares and pays its dividend on a monthly basis. The Bond Funds declare
dividends on a daily basis and pay them on the first business day of the
following month. Any net realized capital gains on sales of securities for a
Fund are distributed to its shareholders at least annually.
Income distributions and capital gain distributions are determined in
accordance with U.S. federal income tax regulations, which may differ from
generally accepted accounting principles. These book/tax differences are either
temporary or permanent in nature. To the extent these differences are permanent,
they are reclassified for book purposes. As of January 31, 2000, $51,306 has
been reclassified in the Equity Fund between undistributed net investment income
and accumulated net realized gain. This reclassification has no effect on net
assets or net asset value per share.
FEDERAL INCOME TAXES -- It is the Trust's intention to comply with the
requirements of sub-chapter "M" 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)
49
<PAGE>
JANUARY 31, 2000
Notes to Financial Statements (continued)
3. INVESTMENT ADVISORY AND CUSTODIAL SERVICES
===============================================================================
Pursuant to an investment advisory agreement dated December 27, 1994, as
amended, investment advisory services are provided to the Funds by First
Security Investment Management, Inc. (the "Adviser"). The Adviser is entitled to
receive an annual fee of 0.74% of the average daily net assets each of the Stock
Funds and 0.60% of the average daily net assets each of the Bond Funds. Such fee
is computed daily and paid monthly. During the year ended January 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 year ended January 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 Service 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
50
<PAGE>
THE ACHIEVEMENT FUNDS
has elected to collect a distribution fee for the Class B shares of the
Municipal Bond Fund and Idaho Municipal Bond Fund of 0.65% per annum, but
reserves the right to collect the full distribution fee payable under the Class
B Plan at any time.
A contingent deferred sales charge (CDSC) is imposed on certain redemptions
of Retail Class B shares. The CDSC varies depending on the number of years from
the time of payment for the purchase of Retail Class B shares until the
redemption of such shares.
YEARS SINCE CONTINGENT DEFERRED
PURCHASE MADE SALES CHARGE
-----------------------------------------------------------
First ............................. 5%
Second ............................ 4%
Third ............................. 4%
Fourth ............................ 3%
Fifth ............................. 2%
Sixth ............................. 1%
Seventh and Following ............. None
5. INVESTMENT TRANSACTIONS
===============================================================================
The cost of security purchases and the proceeds from the sale of
securities, other than short-term investments for the year ended January 31,
2000, are presented on the next page for the Funds. On January 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 January 31, 2000 for each Fund is as follows on the
next page:
51
<PAGE>
JANUARY 31, 2000
Notes to Financial Statements (continued)
FUND INVESTMENT TRANSACTIONS (000)
<TABLE>
<CAPTION>
IDAHO
INTERMEDIATE SHORT MUNICIPAL MUNICIPAL
EQUITY BALANCED TERM BOND TERM BOND BOND BOND
FUND FUND FUND FUND FUND FUND
========== ========= ============ ========= ========= ==========
Purchases
<S> <C> <C> <C> <C> <C> <C>
U.S. Government
Securities $ -- $18,862 $34,885 $10,084 $ -- $ --
Other 114,351 49,478 6,044 9,075 6,171 15,749
Sales
U.S. Government
Securities -- 11,513 24,636 8,985 -- --
Other 131,301 64,362 9,117 18,458 10,152 11,795
Aggregate gross
unrealized gain 104,000 55,757 44 -- 52 34
Aggregate gross
unrealized loss (7,560) (6,632) (7,736) (639) (2,022) (6,367)
-------- ------- -------- -------- ------- -------
Net unrealized
gain (loss) $ 96,440 $49,125 $ (7,692) $ (639) $(1,970) $(6,333)
======== ======= ======== ========= ======= =======
</TABLE>
At January 31, 2000, the Intermediate Term Bond Fund, Short Term Bond Fund
and the Municpal Bond Fund had capital loss carryforwards for federal tax
purposes. The losses in the Funds can be carried forward for a maximum of eight
years to offset any net realized capital gains. Such capital loss carryforwards
will expire as listed below:
INTERMEDIATE SHORT MUNICIPAL
TERM BOND TERM BOND BOND
FUND FUND FUND
============ ============ ============
Carryforwards to Expire in 2004 $937,516 $2,034,615 $ --
Carryforwards to Expire in 2005 519,195 8,234 --
Carryforwards to Expire in 2006 468,346 226,204 --
Carryforwards to Expire in 2007 -- 95,977 --
Carryforwards to Expire in 2008 343,663 95,212 113,010
The Intermediate Term Bond Fund, Short Term Bond Fund and Municipal Bond
Fund incurred losses in the amount of $321,878, $859, and $102,457, respectively
from November 1, 1999 to January 31, 2000. As permitted by tax regulations, the
Fund intends to elect to defer and treat these losses as arising in the fiscal
year ending January 31, 2001.
(CONTINUED)
52
<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 January 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 0% 3%
Education Bonds 15% 6%
General Obligation 50% 9%
Hospital Bonds 10% 21%
Housing Bonds 5% 26%
Public Facility Bonds 5% 3%
Other Revenue Bonds 5% 17%
Transportation Bonds 8% 4%
Utility Bonds 2% 11%
----- ----
100% 100%
===== =====
Many municipalities insure their obligations with insurance underwritten by
insurance companies that undertake to pay a holder, when due, the interest and
principal amount on an obligation if the issuer defaults on its obligation.
Although bond insurance reduces the risk of loss due to default by the issuer,
there is no assurance that the insurance company will meet its obligations.
Also, some of the securities have credit enhancements (letters of credit or
guarantees issued by third party domestic or foreign banks or other
institutions). At January 31, 2000, 77% and 43% of the total value of the Idaho
Municipal Bond Fund and the Municipal Bond fund, respectively, were insured or
had credit enhancements.
53
<PAGE>
- -------------------------------------------------------------------------------
JANUARY 31, 2000
Notes to Financial Statements (continued)
The ratings of debt holdings by Standard & Poor's or Moody's as a
percentage of total value of investments at January 31, 2000 are as follows:
IDAHO
MUNICIPAL MUNICIPAL
INTERMEDIATE TERM SHORT TERM BOND BOND
BOND FUND BOND FUND FUND FUND
================= =========== ========== =========
AAA 64% 34% 76% 41%
AA+ -- -- -- 10%
AA 3% 1% 6% 12%
AA- 2% 3% 7% 4%
A+ 6% 16% 1% 2%
A 12% 25% 1% 4%
A- 8% 13% -- 9%
BBB+ 1% 3% 4% 5%
BBB 2% -- 4% 5%
BBB- 1% -- -- 2%
Not rated 1% 5% 1% 6%
--- --- --- ---
100% 100% 100% 100%
=== === === ===
7. LINE OF CREDIT
================================================================================
Pursuant to a credit agreement dated October 9, 1997, as amended, Morgan
Guaranty Trust Company of New York provides revolving credit loans to the Funds
for short-term or emergency purposes, such as funding shareholder redemptions.
These loans are for the respective benefit of and repayable from the respective
assets of the Funds. The aggregate principal amount over all Funds in the Trust
may not exceed $20,000,000. The aggregate amount of all loans outstanding to an
individual Fund shall not exceed 5% of the total net assets of that Fund. As of
January 31, 2000, none of the Funds had loans outstanding.
54
<PAGE>
THE ACHIEVEMENT FUNDS
8. SHAREHOLDER VOTING RESULTS (UNAUDITED)
===============================================================================
At a shareholder meeting held on October 29, 1999, the shareholders of the
Achievement Equity Fund, Intermediate Term Bond Fund, Balanced Fund, Municipal
Bond Fund, Idaho Municipal Bond Fund, and Short Term Bond Fund voted: (1) to
elect a new Board of Trustees; and (2) to approve an Investment Advisory
Agreement between The Achievement Funds and First Security Investment
Management. The results of the voting were as follows:
<TABLE>
<CAPTION>
Proposal 1 To elect a new Board of Trustees.
Dollars % of Voted % of Total Dollars Voted % of Voted % of Total
Portfolio Voted For For For Withheld Withheld Withheld
- --------------------------------------------------------------------------------------------------------------------
Equity Fund
<S> <C> <C> <C> <C> <C> <C>
James H. Gardner $15,068,630 99.99% 96.61% $1,036 0.01% 0.01%
John L. Rudisill $15,068,630 99.99% 96.61% $1,036 0.01% 0.01%
August Glissmeyer, Jr. $15,068,630 99.99% 96.61% $1,036 0.01% 0.01%
Blaine Huntsman $15,068,630 99.99% 96.61% $1,036 0.01% 0.01%
Frederick A. Moreton, Jr. $15,068,630 99.99% 96.61% $1,036 0.01% 0.01%
Carl S. Minden $15,068,630 99.99% 96.61% $1,036 0.01% 0.01%
Kent H. Murdock $15,068,630 99.99% 96.61% $1,036 0.01% 0.01%
Robert G. Love $15,068,630 99.99% 96.61% $1,036 0.01% 0.01%
George L. Denton, Jr. $15,068,630 99.99% 96.61% $1,036 0.01% 0.01%
Intermediate Term Bond Fund
James H. Gardner $15,933,300 100.00% 97.43% $ 0.00 0.00% 0.00%
John L. Rudisill $15,933,300 100.00% 97.43% $ 0.00 0.00% 0.00%
August Glissmeyer, Jr. $15,933,300 100.00% 97.43% $ 0.00 0.00% 0.00%
Blaine Huntsman $15,933,300 100.00% 97.43% $ 0.00 0.00% 0.00%
Frederick A. Moreton, Jr. $15,933,300 100.00% 97.43% $ 0.00 0.00% 0.00%
Carl S. Minden $15,933,300 100.00% 97.43% $ 0.00 0.00% 0.00%
Kent H. Murdock $15,933,300 100.00% 97.43% $ 0.00 0.00% 0.00%
Robert G. Love $15,933,300 100.00% 97.43% $ 0.00 0.00% 0.00%
George L. Denton, Jr. $15,933,300 100.00% 97.43% $ 0.00 0.00% 0.00%
Balanced Fund
James H. Gardner $15,316,347 100.00% 99.36% $ 80 0.00% 0.00%
John L. Rudisill $15,316,347 100.00% 99.36% $ 80 0.00% 0.00%
August Glissmeyer, Jr. $15,316,347 100.00% 99.36% $ 80 0.00% 0.00%
Blaine Huntsman $15,316,347 100.00% 99.36% $ 80 0.00% 0.00%
Frederick A. Moreton, Jr. $15,316,347 100.00% 99.36% $ 80 0.00% 0.00%
Carl S. Minden $15,316,347 100.00% 99.36% $ 80 0.00% 0.00%
Kent H. Murdock $15,316,347 100.00% 99.36% $ 80 0.00% 0.00%
Robert G. Love $15,316,347 100.00% 99.36% $ 80 0.00% 0.00%
George L. Denton, Jr. $15,316,347 100.00% 99.36% $ 80 0.00% 0.00%
55
</TABLE>
<PAGE>
JANUARY 31, 2000
Notes to Financial Statements (concluded)
<TABLE>
<CAPTION>
Dollars % of Voted % of Total Dollars Voted % of Voted % of Total
Portfolio Voted For For For Withheld Withheld Withheld
- ---------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund
<S> <C> <C> <C> <C> <C> <C>
James H. Gardner $ 6,827,232 100.00% 89.98% $ 0.00 0.00% 0.00%
John L. Rudisill $ 6,827,232 100.00% 89.98% $ 0.00 0.00% 0.00%
August Glissmeyer, Jr. $ 6,827,232 100.00% 89.98% $ 0.00 0.00% 0.00%
Blaine Huntsman $ 6,827,232 100.00% 89.98% $ 0.00 0.00% 0.00%
Frederick A. Moreton, Jr. $ 6,827,232 100.00% 89.98% $ 0.00 0.00% 0.00%
Carl S. Minden $ 6,827,232 100.00% 89.98% $ 0.00 0.00% 0.00%
Kent H. Murdock $ 6,827,232 100.00% 89.98% $ 0.00 0.00% 0.00%
Robert G. Love $ 6,827,232 100.00% 89.98% $ 0.00 0.00% 0.00%
George L. Denton, Jr. $ 6,827,232 100.00% 89.98% $ 0.00 0.00% 0.00%
Idaho Municipal Bond Fund
James H. Gardner $ 3,714,197 99.93% 98.98% $2,614 0.07% 0.07%
John L. Rudisill $ 3,714,197 99.93% 98.98% $2,614 0.07% 0.07%
August Glissmeyer, Jr. $ 3,714,197 99.93% 98.98% $2,614 0.07% 0.07%
Blaine Huntsman $ 3,714,197 99.93% 98.98% $2,614 0.07% 0.07%
Frederick A. Moreton, Jr. $ 3,714,197 99.93% 98.98% $2,614 0.07% 0.07%
Carl S. Minden $ 3,714,197 99.93% 98.98% $2,614 0.07% 0.07%
Kent H. Murdock $ 3,714,197 99.93% 98.98% $2,614 0.07% 0.07%
Robert G. Love $ 3,714,197 99.93% 98.98% $2,614 0.07% 0.07%
George L. Denton, Jr. $ 3,714,197 99.93% 98.98% $2,614 0.07% 0.07%
Short Term Bond Fund
James H. Gardner $ 3,233,856 100.00% 95.74% $ 0.00 0.00% 0.00%
John L. Rudisill $ 3,233,856 100.00% 95.74% $ 0.00 0.00% 0.00%
August Glissmeyer, Jr. $ 3,233,856 100.00% 95.74% $ 0.00 0.00% 0.00%
Blaine Huntsman $ 3,233,856 100.00% 95.74% $ 0.00 0.00% 0.00%
Frederick A. Moreton, Jr. $ 3,233,856 100.00% 95.74% $ 0.00 0.00% 0.00%
Carl S. Minden $ 3,233,856 100.00% 95.74% $ 0.00 0.00% 0.00%
Kent H. Murdock $ 3,233,856 100.00% 95.74% $ 0.00 0.00% 0.00%
Robert G. Love $ 3,233,856 100.00% 95.74% $ 0.00 0.00% 0.00%
George L. Denton, Jr. $ 3,233,856 100.00% 95.74% $ 0.00 0.00% 0.00%
56
</TABLE>
<PAGE>
THE ACHIEVEMENT FUNDS
Proposal 2
To approve an Investment Advisory Agreement between The Achievement Funds
and First Security Investment Management.
Shares % of Shares % of Shares
Portfolio Voted Voted Outstanding
- -------------------------------------------------------------------------------
Equity Fund
For 15,066,617 99.98% 96.60%
Against 1,591 0.01% 0.01%
Abstain 1,458 0.01% 0.01%
Intermediate Term Bond Fund
For 15,932,837 100.00% 97.43%
Against 0 0.00% 0.00%
Abstain 463 0.00% 0.00%
Balanced Fund
For 15,304,548 99.92% 99.29%
Against 11,109 0.07% 0.07%
Abstain 770 0.01% 0.00%
Municipal Bond Fund
For 6,745,184 98.80% 88.90%
Against 0 0.00% 0.00%
Abstain 82,048 1.20% 1.08%
Idaho Municipal Bond Fund
For 3,681,141 99.04% 98.10%
Against 9,541 0.26% 0.25%
Abstain 26,129 0.70% 0.70%
Short Term Bond Fund
For 3,233,856 100.00% 95.74%
Against 0 0.00% 0.00%
Abstain 0 0.00% 0.00%
57
<PAGE>
Independent Auditors' Report
The Shareholders and Board of Trustees of The Achievement Funds Trust:
We have audited the accompanying statements of net assets of The
Achievement Funds Trust (the "Trust"), including the Equity Fund, the Balanced
Fund, the Intermediate Term Bond Fund, the Short Term Bond Fund, the Idaho
Municipal Bond Fund and the Municipal Bond Fund as of January 31, 2000, and the
related statements of operations for the year then ended, the statements of
changes in net assets and the financial highlights for the periods presented.
These financial statements and the financial highlights are the responsibility
of the Trust's management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of January 31, 2000 by correspondence with the Trust's
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective funds constituting The Achievement Funds Trust as of
January 31, 2000, the results of their operations, the changes in their net
assets, and the financial highlights for the respective stated periods, in
conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
March 15, 2000
58
<PAGE>
THE ACHIEVEMENT FUNDS
Notice to Shareholders
(unaudited)
For shareholders that do not have a January 31, 2000 tax year end, this
notice is for informational purposes only. For shareholders with a January 31,
2000 tax year-end, please consult your tax adviser as to the pertinence of this
notice.
For the fiscal year ended January 31, 2000, each fund is designating the
following items with regard to distributions paid during the year.
LONG-TERM ORDINARY TAX EXEMPT
CAPITAL GAIN INCOME INCOME
FUND DISTRIBUTION DISTRIBUTION DISTRIBUTION
- ---------------------------- -------------- -------------- ------------
Equity Fund 95.98% 4.02% 0.00%
Balanced Fund 73.87% 26.13% 0.00%
Intermediate Term Bond Fund 0.00% 100.00% 0.00%
Short Term Bond Fund 0.00% 100.00% 0.00%
Idaho Municipal Bond Fund 13.44% 0.39% 86.17%
Municipal Bond Fund 2.82% 0.47% 96.71%
QUALIFYING
FUND TOTAL DIVIDENDS(1)
- ----------------------------- -------------- --------------
Equity Fund 100% 64.58%
Balanced Fund 100% 33.01%
Intermediate Term Bond Fund 100% 0.00%
Short Term Bond Fund 100% 0.00%
Idaho Municipal Bond Fund 100% 0.00%
Municipal Bond Fund 100% 0.00%
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
None of the Funds qualify in California, Connecticut, or New York to pass
through exempt interest dividends from U.S. government obligations.
None of the Funds qualify for Foreign Tax Credit.
59
<PAGE>
Notes
<PAGE>
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 Murdock
John L. Rudisill
THE
ACHIEVEMENT
FUNDS
INVESTMENT ADVISOR
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>
SHARES OF ANY OF THE ACHIEVEMENT FUNDS ARE:
[Bullet] NOT OBLIGATIONS OR DEPOSITS OF, OR GUARANTEED BY FIRST SECURITY
CORPORATION OR ANY OF ITS BANKS OR NON-BANK SUBSIDIARIES;
[Bullet] NOT FEDERALLY INSURED BY THE FDIC,THE FEDERAL RESERVE BOARD OR ANY
OTHER GOVERNMENT AGENCY;
[Bullet] SUBJECT TO INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN A FUND UNLESS PRECEDED
OR ACCOMPANIED BY A CURRENT PROSPECTUS.
(Logo) [Graphic Omitted]
For more information, including a prospectus, call 1-800-472-0577
or visit us at www.achievementfunds.com
[LOGO OMITTED]
ACH-F-014-06
