EQUITY PORTFOLIOS
SEMI-ANNUAL
REPORT
TO SHAREHOLDERS
MARCH 31, 1997
(GRAPHIC OMITTED]
COMPASS CAPITAL FUNDS
[LOGO OMITTED]
PURE INVESTMENT STYLE SM
* NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE *
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[LOGO OMITTED] COMPASS CAPITAL FUNDS
EQUITY PORTFOLIOS
* Large Cap Value Equity * International Equity
* Large Cap Growth Equity * International Emerging
* Mid-Cap Value Equity Markets
* Mid-Cap Growth Equity * Select Equity
* Small Cap Value Equity * Index Equity
* Small Cap Growth Equity * Balanced
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TABLE of
CONTENTS
PRESIDENT'S LETTER..................................................... 1
PORTFOLIO SUMMARIES
LARGE CAP VALUE EQUITY........................................... 2
LARGE CAP GROWTH EQUITY.......................................... 3
MID-CAP VALUE EQUITY............................................. 4
MID-CAP GROWTH EQUITY............................................ 5
SMALL CAP VALUE EQUITY........................................... 6
SMALL CAP GROWTH EQUITY.......................................... 7
INTERNATIONAL EQUITY............................................. 8
INTERNATIONAL EMERGING MARKETS................................... 9
SELECT EQUITY.................................................... 10
INDEX EQUITY..................................................... 11
BALANCED......................................................... 12
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS........................ 14-39
INTERNATIONAL EQUITY STATEMENT OF NET ASSETS & LIABILITIES....... 29
PORTFOLIO FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS......................................... 40-41
STATEMENTS OF CHANGES IN NET ASSETS.............................. 42-43
FINANCIAL HIGHLIGHTS............................................. 44-51
NOTES TO FINANCIAL STATEMENTS.......................................... 52-64
DFA INVESTMENT TRUST COMPANY ANNUAL REPORT............................. 66-77
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COMPASS CAPITAL FUNDS [LOGO OMITTED]
PRESIDENT'S LETTER
March 31, 1997
Dear Shareholder:
We welcome the opportunity to present the March 31, 1997 semi-annual report
for your Compass Capital Funds. In addition to providing you with a summary of
the financial markets on the pages immediately following, we have included a
summary for each Compass Capital portfolio that includes a review of your fund's
investment approach, recent portfolio management activity and performance.
WHAT HAPPENED IN THE ECONOMY AND FINANCIAL MARKETS.
The past six months have again given both stock and bond investors positive
returns. However, as I mentioned in my November letter, the staggering returns
of 1995 and 1996 are unlikely to be repeated in 1997.
The stock market exhibited significant volatility during the first quarter
of 1997, as the Dow Jones Industrial Average reached its all-time high in
mid-March before falling over 7% by quarter-end. Likewise, the domestic bond
market has taken on an increasingly negative tone as stronger economic data and
resultant inflation fears have caused interest rates to rise significantly since
mid-February. Consequently, the Federal Reserve increased the Fed funds target
rate by 1/4% as a pre-emptive strike at inflation.
OUR THOUGHTS ON THE ECONOMY.
Although we expect economic strength to continue through mid-year,
inflation has remained relatively low. While we believe that additional interest
rate increases by the Fed may be necessary to subdue economic growth to a more
sustainable rate of 2.25%-2.50%, we do not believe that 1997 will be a repeat of
the dramatic rise in short term interest rates that we witnessed in 1994.
Rather, we expect that the Federal Reserve's proactive monetary policy should
keep inflationary pressures constrained.
WHAT THIS MEANS TO INVESTORS.
The recent market turbulence underscores the importance of developing a
long-term investment strategy based on your specific financial goals. Though
each investor's financial situation and risk tolerance are unique, the common
thread among all successful long-term investment strategies is a commitment to
BEING INVESTED at all times. Additionally, recent market performance has
reminded us that a diversified portfolio can potentially enhance returns in
addition to reducing volatility. For example, as the U.S. markets retreated over
the past few months, international stocks and bonds have posted strong gains,
most notably in the emerging markets. In fact, total returns for emerging market
stocks in the first quarter of 1997 were nearly four times those of their U.S.
counterparts, emphasizing the potential benefit of a diversified portfolio.
This report is just one of the many ways we are continually striving to
provide our shareholders with the information necessary to make informed
investment decisions. We would like to thank you for your continued confidence
in the Compass Capital Funds and look forward to helping you reach your
long-term investment goals.
Sincerely,
[/S/ Karen H. Sabath]
Karen H. Sabath
PRESIDENT, COMPASS CAPITAL GROUP, INC.
1
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[LOGO OMITTED] COMPASS CAPITAL FUNDS
LARGE CAP VALUE EQUITY
PORTFOLIO
PORTFOLIO SUB-ADVISOR:
PROVIDENT CAPITAL MANAGEMENT
TOTAL ASSETS (3/31/97):
$1.2 BILLION
PERFORMANCE BENCHMARK:
RUSSELL 1000 VALUE INDEX
INVESTMENT APPROACH:
PURSUES LONG-TERM CAPITAL APPRECIATION BY INVESTING IN EQUITY SECURITIES
BELIEVED BY THE MANAGER TO BE UNDERVALUED. TYPICALLY, THE MANAGER WILL FOCUS ON
STOCKS WITH LOWER THAN AVERAGE PRICE-TO-EARNINGS AND PRICE-TO-BOOK RATIOS AND
MARKET CAPITALIZATIONS IN EXCESS OF $5 BILLION. A COMPANY'S EARNINGS TREND AND
ITS STOCK'S DIVIDEND GROWTH RATE WILL ALSO BE FACTORS CONSIDERED IN SECURITY
SELECTION.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) THE MANAGER RECENTLY INCREASED THE PORTFOLIO'S ALLOCATION TO THE
RETAIL SECTOR FOLLOWING THE MARKET'S NEGATIVE REACTION TO DISAPPOINTING
CHRISTMAS SALES.
(BULLET) IN ANTICIPATION OF FURTHER DEREGULATION IN THE INDUSTRY, THE
PORTFOLIO'S HOLDINGS IN ELECTRIC UTILITIES WERE REPOSITIONED TOWARD HIGHER
QUALITY, NON-NUCLEAR COMPANIES.
(BULLET) PROFITS WERE REALIZED IN PHILIP MORRIS, REDUCING THE PORTFOLIO'S
OVERALL EXPOSURE TO THE TOBACCO INDUSTRY.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE
LARGE CAP VALUE EQUITY PORTFOLIO AND RUSSELL 1000 VALUE
INDEX FROM INCEPTION AND AT EACH FISCAL YEAR END.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
Institutional Service Investor A Investor B Investor C Russell 1000
Class Class Class Class Class Value
4/20/92 10,000 10,000 9,550 10,000 10,000 10,000
6/30/92 9,831 9,831 9,388 9,831 9,831 10,418
9/30/92 9,881 9,882 9,437 9,882 9,882 10,634
12/31/92 10,457 10,457 9,986 10,457 10,457 11,254
3/31/93 11,342 11,342 10,832 11,342 11,342 12,342
6/30/93 11,414 11,414 10,901 11,414 11,414 12,704
9/30/93 12,048 12,042 11,508 12,050 12,050 13,331
12/31/93 12,338 12,327 11,768 12,322 12,322 13,295
3/31/94 11,871 11,853 11,313 11,846 11,846 12,830
6/30/94 12,045 12,021 11,459 11,999 11,999 12,909
9/30/94 12,500 12,466 11,891 12,452 12,452 13,238
12/31/94 12,474 12,432 11,854 12,413 12,413 13,028
3/31/95 13,546 13,494 12,862 13,468 13,468 14,265
6/30/95 14,616 14,549 13,863 14,516 14,516 15,544
9/30/95 15,716 15,633 14,890 15,591 15,591 16,903
12/31/95 16,823 16,722 15,921 16,672 16,672 18,023
3/31/96 17,778 17,659 16,807 17,581 17,581 19,045
6/30/96 18,388 18,253 17,372 18,132 18,132 19,372
9/30/96 19,018 18,864 17,947 18,705 18,705 19,936
12/31/96 20,894 20,698 19,712 20,485 20,485 21,925
3/31/97 21,243 21,044 20,007 20,363 20,780 22,486
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR FROM INCEPTION
------ --------------
Institutional Class 19.49% 16.45%
Service Class 19.17% 16.23%
Investor A Class (Load Adjusted) 13.72% 15.05%
Investor A Class (NAV) 19.04% 16.12%
Investor B Class (Load Adjusted) 12.88% 15.46%
Investor B Class (NAV) 18.20% 15.93%
Investor C Class 17.02% 15.93%
The performance information above includes information relating to each class of
the Portfolio since the commencement of operations of the Portfolio, rather than
the date such class was introduced. The inception dates of the Portfolio's share
classes were as follows: Institutional Shares, 4/20/92; Investor A Shares,
5/2/92; Service Shares, 7/29/93; Investor B Shares, 1/18/96; and Investor C
Shares, 8/16/96. See "Note on Performance Information" on page 13 for further
information on how performance data was calculated.
Past performance is not predictive of future results.
2
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COMPASS CAPITAL FUNDS [LOGO OMITTED]
LARGE CAP GROWTH EQUITY
PORTFOLIO
PORTFOLIO SUB-ADVISOR:
PNC EQUITY ADVISORS COMPANY
TOTAL ASSETS (3/31/97):
$650.1 MILLION
PERFORMANCE BENCHMARK:
RUSSELL 1000 GROWTH INDEX
INVESTMENT APPROACH:
PURSUES LONG-TERM CAPITAL APPRECIATION BY INVESTING IN STOCKS OF COMPANIES
CONSIDERED BY THE MANAGER TO HAVE FAVORABLE AND ABOVE-AVERAGE EARNINGS GROWTH
PROSPECTS AND MARKET CAPITALIZATIONS GREATER THAN $5 BILLION.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) THE MANAGER INCREASED THE PORTFOLIO'S AVERAGE MARKET
CAPITALIZATION BY APPROXIMATELY 30%, ADDING TO OR INITIATING POSITIONS IN SOME
OF THE NATION'S LARGEST COMPANIES SUCH AS INTEL, MICROSOFT AND ELI LILLY.
(BULLET) THE PORTFOLIO WAS UNDERWEIGHTED IN TECHNOLOGY STOCKS, WHICH
BENEFITED PERFORMANCE DURING THE FIRST QUARTER. SINCE MID-FEBRUARY, THE MANAGER
HAS BEEN ADDING TO THE OVERALL TECHNOLOGY WEIGHTING.
(BULLET) THE MANAGER REDUCED THE PORTFOLIO'S HEAVY WEIGHTING IN THE
FINANCIAL SECTOR, PARTICULARLY IN BANK STOCKS, THROUGHOUT FEBRUARY AND MARCH.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
IN THE LARGE CAP GROWTH EQUITY PORTFOLIO
AND RUSSELL 1000 GROWTH INDEX FROM
INCEPTION AND AT EACH FISCAL YEAR END.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
Institutional Service Investor A Investor B Investor C Russell 1000
Class Class Class Class Class Growth Index
11/01/89 10,000 10,000 9,550 10,000 10,000 10,000
12/31/89 10,825 10,825 10,338 10,825 10,825 10,396
3/31/90 10,493 10,493 10,021 10,493 10,493 10,053
6/30/90 10,987 10,987 10,493 10,987 10,987 10,651
9/30/90 10,040 10,040 9,589 10,040 10,040 9,096
12/31/90 10,603 10,603 10,126 10,603 10,603 9,963
3/31/91 11,397 11,397 10,884 11,397 11,397 11,510
6/30/91 11,304 11,304 10,795 11,304 11,304 11,459
9/30/91 11,993 11,993 11,454 11,993 11,993 12,167
12/31/91 13,361 13,361 12,760 13,361 13,361 13,254
3/31/92 12,389 12,389 11,831 12,389 12,389 12,967
6/30/92 12,455 12,455 11,894 12,455 12,455 13,148
9/30/92 12,581 12,581 12,014 12,581 12,581 13,579
12/31/92 13,228 13,228 12,631 13,228 13,228 14,451
3/31/93 13,473 13,473 12,865 13,473 13,473 15,053
6/30/93 13,912 13,912 13,271 13,912 13,912 15,157
9/30/93 15,371 15,371 14,651 15,371 15,371 15,646
12/31/93 15,039 15,039 14,338 15,039 15,039 15,919
3/31/94 13,859 13,859 13,200 13,859 13,859 15,290
6/30/94 13,001 13,001 12,370 13,001 13,001 15,260
9/30/94 13,657 13,657 12,983 13,657 13,657 16,041
12/31/94 13,525 13,525 12,841 13,525 13,525 15,979
3/31/95 14,755 14,755 13,997 14,755 14,755 17,499
6/30/95 16,075 16,075 15,237 16,075 16,075 19,147
9/30/95 17,737 17,737 16,781 17,737 17,737 20,853
12/31/95 18,183 18,183 17,192 18,183 18,183 22,012
3/31/96 19,333 19,333 18,267 19,333 19,333 23,226
6/30/96 20,471 20,471 19,315 20,471 20,471 24,171
9/30/96 21,048 21,048 19,833 21,048 21,048 24,958
12/31/96 21,884 21,884 20,591 21,884 21,884 26,948
3/31/97 21,746 21,746 20,451 21,197 21,197 27,365
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR 5 YEAR FROM INCEPTION
------ ------ --------------
Institutional Class 12.48% 11.91% 11.04%
Service Class 12.17% 11.71% 10.90%
Investor A Class (Load Adjusted) 6.92% 10.55% 10.12%
Investor A Class (NAV) 11.97% 11.57% 10.81%
Investor B Class (Load Adjusted) 6.31% 10.89% 10.66%
Investor B Class (NAV) 11.32% 11.34% 10.66%
InvestorC Class 10.21% 11.34% 10.66%
The performance information above includes information relating to each class of
the Portfolio since the commencement of operations of the Portfolio, rather than
the date such class was introduced. The inception dates of the Portfolio's share
classes were as follows: Institutional Shares, 11/1/89; Investor A Shares,
3/14/92; Service Shares, 7/29/93; Investor B Shares, 1/24/96; and Investor C
Shares, 1/24/97. See "Note on Performance Information" on page 13 for further
information on how performance data was calculated.
Past performance is not predictive of future results.
3
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[LOGO OMITTED] COMPASS CAPITAL FUNDS
MID-CAP VALUE EQUITY
PORTFOLIO
PORTFOLIO SUB-ADVISOR:
PROVIDENT CAPITAL MANAGEMENT
TOTAL ASSETS (3/31/97):
$68.1 MILLION
PERFORMANCE BENCHMARK:
RUSSELL MIDCAP VALUE INDEX
INVESTMENT APPROACH:
PURSUES LONG-TERM CAPITAL APPRECIATION BY INVESTING IN EQUITY SECURITIES
BELIEVED BY THE MANAGER TO BE UNDERVALUED. TYPICALLY, THE MANAGER WILL FOCUS ON
STOCKS WITH LOWER THAN AVERAGE PRICE-TO-EARNINGS AND PRICE-TO-BOOK RATIOS AND
MARKET CAPITALIZATIONS BETWEEN $1 BILLION AND $5 BILLION. A COMPANY'S EARNINGS
TREND AND ITS STOCK'S DIVIDEND GROWTH RATE WILL ALSO BE FACTORS CONSIDERED IN
SECURITY SELECTION.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) THE PORTFOLIO'S AVERAGE COMPANY'S PRICE-TO-EARNINGS (P/E) RATIO IS
21% BELOW THE AVERAGE OF THE RUSSELL MIDCAP VALUE INDEX, UNDERSCORING THE
MANAGER'S DISCIPLINED STRATEGY TO COMPOSE A PORTFOLIO OF UNDERVALUED SECURITIES.
(BULLET) THE PORTFOLIO'S OVERWEIGHT IN THE HEALTHCARE, TECHNOLOGY AND
INSURANCE INDUSTRIES POSITIVELY CONTRIBUTED TO THE FUND'S PERFORMANCE DURING THE
FIRST QUARTER.
(BULLET) DESPITE RISING INTEREST RATES, THE PORTFOLIO'S BANKING COMPANIES
PERFORMED WELL AS RENEWED MERGER ACTIVITY LIFTED THEIR STOCK PRICES.
COMPARISON OF CHANGE IN VALUE OF A
$10,000 INVESTMENT IN THE
MID-CAP VALUE EQUITY
PORTFOLIO AND THE RUSSELL MID
CAP VALUE INDEX FROM
INCEPTION.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
Russell
Institutional Service Investor A Investor B Investor C Mid-Cap Value
Class Class Class Class Class Index
12/28/96 10,000 10,000 9,550 10,000 10,000 10,000
1/31/97 10,230 10,230 9,770 10,230 10,230 10,314
2/28/97 10,450 10,450 9,970 10,440 10,440 10,488
3/31/97 10,084 10,071 9,617 9,614 9,964 10,169
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR FROM INCEPTION
------ --------------
Institutional Class N/A 0.84%
Service Class N/A 0.71%
Investor A Class (Load Adjusted) N/A -3.82%
Investor A Class (NAV) N/A 0.70%
Investor B Class (Load Adjusted) N/A -1.36%
Investor B Class (NAV) N/A 0.65%
Investor C Class N/A 0.65%
The inception date of the Portfolio's Instittuional, Service, Investor A,
Investor B and Investor C Shares was 12/27/96. See "Note on Performance
Information" on page 13 for further information on how performance data was
calculated.
Past performance is not predictive of future results.
4
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COMPASS CAPITAL FUNDS [LOGO OMITTED]
MID-CAP GROWTH EQUITY
PORTFOLIO
PORTFOLIO SUB-ADVISOR:
PNC EQUITY ADVISORS COMPANY
TOTAL ASSETS (3/31/97):
$64.0 MILLION
PERFORMANCE BENCHMARK:
RUSSELL MIDCAP GROWTH INDEX
INVESTMENT APPROACH:
PURSUES LONG-TERM CAPITAL APPRECIATION BY INVESTING IN STOCKS OF COMPANIES
CONSIDERED BY THE MANAGER TO HAVE FAVORABLE AND ABOVE-AVERAGE EARNINGS GROWTH
PROSPECTS AND MARKET CAPITALIZATIONS BETWEEN $1 BILLION AND $5 BILLION.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) SINCE ITS INITIAL FUNDING IN DECEMBER 1996, THE PORTFOLIO HAS BEEN
UNDERWEIGHTED IN THE TECHNOLOGY SECTOR AND OVERWEIGHTED IN THE HEALTHCARE
SECTOR.
(BULLET) THE MANAGER WILL CONTINUE SEEKING THE MOST DYNAMIC GROWTH
COMPANIES IN THE $1-$5 BILLION MARKET CAPITALIZATION CATEGORY.
COMPARISON OF CHANGE IN VALUE OF A $10,000
INVESTMENT IN THE MID-CAP GROWTH
EQUITY PORTFOLIO AND THE RUSSELL
MID CAP GROWTH INDEX FROM
INCEPTION.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
Russell
Institutional Service Investor A Investor B Investor C Mid-Cap
Class Class Class Class Class Growth Index
12/28/96 10,000 10,000 9,550 10,000 10,000 10,000
1/31/97 10,229 10,229 9,759 10,219 10,219 10,420
2/28/97 9,552 9,552 9,112 9,552 9,552 10,191
3/31/97 8,894 8,894 8,484 8,486 8,795 9,615
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR FROM INCEPTION
------ --------------
Institutional Class N/A -10.70%
Service Class N/A -10.70%
Investor A Class (Load Adjusted) N/A -14.80%
Investor A Class (NAV) N/A -11.16%
Investor B Class (Load Adjusted) N/A -12.58%
Investor B Class (NAV) N/A -11.60%
Investor C Class N/A -10.80%
The inception date of the Portfolio's Instittuional, Service, Investor A,
Investor B and Investor C Shares was 12/27/96. See "Note on Performance
Information" on page 13 for further information on how performance data was
calculated.
Past performance is not predictive of future results.
5
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
SMALL CAP VALUE EQUITY
PORTFOLIO
PORTFOLIO SUB-ADVISOR:
PROVIDENT CAPITAL MANAGEMENT
TOTAL ASSETS (3/31/97):
$351.4 MILLION
PERFORMANCE BENCHMARK:
RUSSELL 2000 VALUE INDEX
INVESTMENT APPROACH:
PURSUES LONG-TERM CAPITAL APPRECIATION BY INVESTING IN SMALL CAP EQUITY
SECURITIES CONSIDERED BY THE MANAGER TO BE UNDERVALUED. TYPICALLY, THE MANAGER
WILL FOCUS ON STOCKS WITH LOWER THAN AVERAGE PRICE-TO-EARNINGS AND PRICE-TO-BOOK
RATIOS AND MARKET CAPITALIZATIONS LESS THAN $1 BILLION. A COMPANY'S EARNINGS
TREND AND ITS STOCK'S DIVIDEND GROWTH RATE WILL ALSO BE FACTORS CONSIDERED IN
SECURITY SELECTION.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) THE PORTFOLIO'S OVERWEIGHT POSITION IN THE STRONGLY OUTPERFORMING
FINANCE, REIT AND INSURANCE SECTORS AIDED FIRST QUARTER TOTAL RETURN
PERFORMANCE.
(BULLET) THE MANAGER ADDED TWELVE NEW SECURITIES AND ELIMINATED NINE
HOLDINGS DURING THE FIRST QUARTER OF 1997, RESULTING IN A NET THREE NEW
POSITIONS IN THE FINANCE SECTOR, TWO NEW POSITIONS IN REITS AND TWO FEWER
POSITIONS IN BASIC MATERIALS.
(BULLET) THE PORTFOLIO'S TECHNOLOGY STOCKS PRODUCED AN AVERAGE FIRST
QUARTER RETURN OF 1.2%, DEFYING THE NEGATIVE PERFORMANCE OF THE AVERAGE
TECHNOLOGY STOCK.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE
SMALL CAP VALUE EQUITY PORTFOLIO AND THE RUSSELL 2000 VALUE
INDEX FROM INCEPTION AND AT EACH FISCAL YEAR END.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
Russell
Institutional Service Investor A Investor B Investor C 2000
Class Class Class Class Class Value Index
4/13/92 10,000 10,000 9,550 10,000 10,000 10,000
6/30/92 9,680 9,680 9,244 9,680 9,680 9,657
9/30/92 10,151 10,151 9,694 10,151 10,151 9,933
12/31/92 11,686 11,686 11,160 11,686 11,686 11,416
3/31/93 12,413 12,413 11,854 12,413 12,412 11,903
6/30/93 12,251 12,251 11,699 12,251 12,251 12,162
9/30/93 13,233 13,232 12,637 13,232 13,232 13,225
12/31/93 13,866 13,856 13,228 13,851 13,851 13,596
3/31/94 13,608 13,599 12,973 13,585 13,584 13,236
6/30/94 13,350 13,322 12,707 13,378 13,306 12,720
9/30/94 14,061 14,022 13,378 13,125 14,009 13,603
12/31/94 13,800 13,768 13,125 13,548 13,733 13,350
3/31/95 14,256 14,212 13,548 14,311 14,154 13,965
6/30/95 15,085 15,028 14,311 15,644 14,933 15,274
9/30/95 16,513 16,428 15,644 16,091 16,297 16,783
12/31/95 16,994 16,898 16,091 16,923 16,732 17,147
3/31/96 17,903 17,797 16,923 17,474 17,583 18,023
6/30/96 18,519 18,383 17,474 17,530 18,123 18,925
9/30/96 18,599 18,449 17,530 18,146 18,146 18,991
12/31/96 20,369 20,203 19,203 19,829 19,829 19,979
3/31/97 20,206 20,015 19,016 19,210 19,606 18,946
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR FROM INCEPTION
------ --------------
Institutional Class 12.87% 15.20%
Service Class 12.47% 14.98%
Investor A Class (Load Adjusted) 7.29% 13.80%
Investor A Class (NAV) 12.37% 14.86%
Investor B Class (Load Adjusted) 6.50% 14.04%
Investor B Class (NAV) 11.50% 14.50%
Investor C Class 10.39% 14.50%
The performance information above includes information relating to each class of
the Portfolio since the commencement of operations of the Portfolio, rather than
the date such class was introduced. The inception dates of the Portfolio's share
classes were as follows: Institutional Shares, 4/13/92; Investor A Shares,
6/2/92; Service Shares, 7/29/93; Investor B Shares, 10/3/94; and Investor C
Shares, 10/1/96. See "Note on Performance Information" on page 13 for further
information on how performance data was calculated.
Past performance is not predictive of future results.
6
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
SMALL CAP GROWTH EQUITY
PORTFOLIO
PORTFOLIO SUB-ADVISOR:
PNC EQUITY ADVISORS COMPANY
TOTAL ASSETS (3/31/97):
$478.8 MILLION
PERFORMANCE BENCHMARK:
RUSSELL 2000 GROWTH INDEX
INVESTMENT APPROACH:
PURSUES LONG-TERM CAPITAL APPRECIATION BY INVESTING IN STOCKS OF COMPANIES
CONSIDERED BY THE MANAGER TO HAVE FAVORABLE AND ABOVE-AVERAGE EARNINGS GROWTH
PROSPECTS AND MARKET CAPITALIZATIONS LESS THAN $1 BILLION.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) THE MANAGER HAS REDUCED OVERWEIGHTS THAT EXISTED AT THE BEGINNING
OF THE FIRST QUARTER IN THE TECHNOLOGY AND CONSUMER SERVICES SECTORS AND
RECYCLED ASSETS INTO THE HEALTHCARE, RETAIL AND ENERGY SECTORS.
(BULLET) THE PORTFOLIO'S AVERAGE MARKET CAPITALIZATION HAS BEEN DECREASED,
WHICH THE MANAGER BELIEVES WILL BENEFIT THE PORTFOLIO AND WILL CONTINUE SEEKING
THE MOST DYNAMIC GROWTH COMPANIES IN THE BELOW $1 BILLION MARKET CAPITALIZATION
CATEGORY.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
THE SMALL CAP GROWTH EQUITY PORTFOLIO AND THE
RUSSELL 2000 GROWTH INDEX FROM INCEPTION AND AT
EACH FISCAL YEAR END.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
Russell
Institutional Service Investor A Investor B Investor C 2000
Class Class Class Class Class Growth Index
9/14/93 10,000 10,000 9,550 10,000 10,000 10,000
9/30/93 10,470 10,470 9,999 10,470 10,470 10,141
12/31/93 10,379 10,374 9,904 10,371 10,371 10,407
3/31/94 9,858 9,854 9,398 9,841 9,841 9,984
6/30/94 9,169 9,143 8,729 9,141 9,141 9,357
9/30/94 10,170 10,144 9,666 10,121 10,121 10,231
12/31/94 10,990 10,955 10,439 10,931 10,931 10,155
3/31/95 11,672 11,635 11,079 11,601 11,601 10,711
6/30/95 13,195 13,146 12,512 13,101 13,101 11,773
9/30/95 15,100 15,026 14,307 14,981 14,981 13,111
12/31/95 16,213 16,066 15,282 16,002 16,002 13,304
3/31/96 18,291 18,107 17,221 17,993 17,993 14,069
6/30/96 20,941 20,719 19,695 20,534 20,534 14,891
9/30/96 22,025 21,809 20,717 21,535 21,535 14,763
12/31/96 21,332 21,110 20,040 20,784 20,784 14,803
3/31/97 17,182 16,989 16,114 16,190 17,182 13,240
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR FROM INCEPTION
------ --------------
Institutional Class -6.06% 16.49%
Service Class -6.18% 16.12%
Investor A Class (Load Adjusted) -10.64% 14.41%
Investor A Class (NAV) -6.43% 15.90%
Investor B Class (Load Adjusted) -11.41% 14.56%
Investor B Class (NAV) -7.42% 15.55%
Investor C Class -8.17% 15.55%
The performance information above includes information relating to each class of
the Portfolio since the commencement of operations of the Portfolio, rather than
the date such class was introduced. The inception dates of the Portfolio's share
classes were as follows: Institutional Shares, 9/14/93; Service and Investor A
Shares, 9/15/93; Investor B Shares, 1/18/96; and Investor C Shares, 9/6/96. See
"Note on Performance Information" on page 13 for further information on how
performance data was calculated.
Past performance is not predictive of future results.
7
<PAGE>
[Logo omitted] COMPASS CAPITAL FUNDS
INTERNATIONAL EQUITY
PORTFOLIO
PORTFOLIO SUB-ADVISOR:
CASTLEINTERNATIONAL ASSET MANAGEMENT LIMITED
TOTAL ASSETS (3/31/97):
$569.4 MILLION
PERFORMANCE BENCHMARK:
MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALIA AND
THE FAR EAST INDEX ("EAFE").
INVESTMENT APPROACH:
PURSUES LONG-TERM CAPITAL APPRECIATION BY INVESTING IN NON-DOLLAR
DENOMINATED STOCKS OF ISSUERS IN COUNTRIES INCLUDED IN THE EAFE INDEX. WITHIN
THIS UNIVERSE, A VALUE STYLE OF INVESTING IS EMPLOYED TO SELECT STOCKS WHICH THE
MANAGER BELIEVES ARE UNDERVALUED.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) THE MANAGER CONTINUED TO REDUCE THE PORTFOLIO'S WEIGHTING IN
JAPAN.
(BULLET) PROCEEDS FROM THE SALE OF JAPANESE SECURITIES WERE INVESTED INTO
CONTINENTAL EUROPEAN MARKETS, MOST NOTABLY FRANCE AND GERMANY, AS THESE MARKETS
HAVE PERFORMED WELL OVER THE PAST SIX MONTHS AND THEIR PROSPECTS FOR ECONOMIC
RECOVERY IMPROVE.
(BULLET) THE MANAGER INCREASED EXPOSURE TO SINGAPORE, WHERE VALUATIONS
BECAME ATTRACTIVE AFTER THAT MARKET FELL IN RESPONSE TO RISING U.S. INTEREST
RATES.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
THE INTERNATIONAL EQUITY PORTFOLIO AND THE EAFE INDEX
FROM INCEPTION AND AT EACH FISCAL YEAR END.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
Institutional Service Investor A Investor B Investor C EAFE
Class Class Class Class Class Index
4/27/92 10,000 10,000 9,500 10,000 10,000 10,000
6/30/92 10,429 10,429 9,908 10,430 10,430 9,529
9/30/92 9,938 9,938 9,442 9,939 9,939 9,682
12/31/92 9,816 9,816 9,327 9,817 9,817 9,317
3/31/93 10,962 10,962 10,415 10,963 10,963 10,443
6/30/93 11,602 11,602 11,024 11,604 11,604 11,502
9/30/93 12,692 12,692 12,058 12,693 12,693 12,273
12/31/93 13,435 13,423 12,747 13,418 13,418 12,386
3/31/94 13,591 13,569 12,886 13,564 13,564 12,827
6/30/94 13,643 13,621 12,916 13,596 13,596 13,492
9/30/94 14,050 14,007 13,293 13,992 13,992 13,513
12/31/94 13,468 13,428 12,732 13,392 13,392 13,385
3/31/95 13,371 13,332 12,630 13,263 13,263 13,644
6/30/95 13,854 13,796 13,069 13,692 13,692 13,753
9/30/95 14,393 14,318 13,560 14,185 14,185 14,337
12/31/95 14,807 14,730 13,954 14,580 14,580 14,929
3/31/96 15,165 15,076 14,271 14,877 14,877 15,371
6/30/96 15,849 15,733 14,893 15,496 15,496 15,625
9/30/96 15,548 15,422 14,587 15,152 15,152 15,616
12/31/96 16,070 15,929 15,068 15,626 15,626 15,876
3/31/97 15,960 15,795 14,942 15,160 15,470 15,638
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR FROM INCEPTION
------ --------------
Institutional Class 5.24% 9.95%
Service Class 4.78% 9.71%
Investor A Class (Load Adjusted) -0.55% 8.48%
Investor A Class (NAV) 4.70% 9.62%
Investor B Class (Load Adjusted) -0.69% 8.80%
Investor B Class (NAV) 3.98% 9.25%
Investor C Class 2.94% 9.25%
The performance information above includes information relating to each class of
the Portfolio since the commencement of operations of the Portfolio, rather than
the date such class was introduced. The inception dates of the Portfolio's share
classes were as follows: Institutional Shares, 4/27/92; Investor A Shares,
6/2/92; Service Shares, 7/29/93; Investor B Shares, 10/3/94; and Investor C
Shares, 12/5/96. See "Note on Performance Information" on page 13 for further
information on how performance data was calculated.
Past performance is not predictive of future results.
8
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
INTERNATIONAL EMERGING MARKETS
PORTFOLIO
PORTFOLIO SUB-ADVISOR:
CASTLEINTERNATIONAL ASSET MANAGEMENT LIMITED
TOTAL ASSETS (3/31/97):
$158.3 MILLION
PERFORMANCE BENCHMARK:
MORGAN STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS FREE INDEX
INVESTMENT APPROACH:
PURSUES LONG-TERM CAPITAL APPRECIATION BY INVESTING IN NON-DOLLAR
DENOMINATED STOCKS OF ISSUERS IN EMERGING MARKETS (GENERALLY ANY COUNTRY
CONSIDERED TO BE EMERGING OR DEVELOPING BY THE WORLD BANK, THE INTERNATIONAL
FINANCE CORPORATION OR THE UNITED NATIONS). WITHIN THIS UNIVERSE, A VALUE STYLE
OF INVESTING IS EMPLOYED TO SELECT STOCKS WHICH THE MANAGER BELIEVES ARE
UNDERVALUED.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) THE MANAGER REDUCED THE PORTFOLIO'S OVERWEIGHT POSITION IN THE
LATIN AMERICAN MARKETS AFTER THAT REGION'S STRONG PERFORMANCE.
(BULLET) PROCEEDS FROM THE SALE OF LATIN AMERICAN SECURITIES WERE INVESTED
INTO ASIAN MARKETS, ALTHOUGH THE PORTFOLIO MAINTAINS AN UNDERWEIGHT POSITION IN
THE REGION.
(BULLET) NEW MARKETS INCLUDED BY THE MANAGER IN THE PORTFOLIO WERE ZIMBABWE
AND RUSSIA.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE EMERGING
MARKETS PORTFOLIO AND THE MSCI EMERGING MARKETS/FREE INDEX FROM INCEPTION AND AT
EACH FISCAL YEAR END.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
MSCI
Institutional Service Investor A Investor B Investor C Emerging
Class Class Class Class Class Free Index
6/17/94 10,000 10,000 9,500 10,000 10,000 10,000
6/30/94 9,960 9,960 9,462 9,960 9,960 10,000
9/30/94 10,560 10,550 10,013 10,540 10,540 12,076
12/31/94 9,142 9,131 8,665 9,121 9,121 10,340
3/31/95 8,070 8,060 7,637 8,039 8,039 9,060
6/30/95 8,758 8,736 8,272 8,707 8,707 10,001
9/30/95 8,478 8,450 7,997 8,418 8,418 9,937
12/31/95 7,992 7,955 7,529 7,925 7,925 9,803
3/31/96 8,810 8,760 8,291 8,727 8,727 10,413
6/30/96 9,327 9,267 8,770 9,221 9,221 10,848
9/30/96 9,068 9,008 8,515 8,943 8,943 10,456
12/31/96 8,972 8,905 8,418 8,820 8,820 10,394
3/31/97 10,196 10,114 9,552 9,743 10,197 11,274
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR FROM INCEPTION
------ --------------
Institutional Class 15.74% 0.70%
Service Class 15.45% 0.41%
Investor A Class (Load Adjusted) 9.41% -1.64%
Investor A Class (NAV) 15.21% 0.20%
Investor B Class (Load Adjusted) 9.35% -1.29%
Investor B Class (NAV) 14.50% -0.30%
Investor C Class 13.36% -0.03%
The performance information above includes information relating to each class of
the Portfolio since the commencement of operations of the Portfolio, rather than
the date such class was introduced. The inception dates of the Portfolio's share
classes were as follows: Institutional Shares, Service Shares and Investor A
Shares, 6/17/94; Investor B Shares, 7/2/96; and Investor C Shares, 3/21/97. See
"Note on Performance Information" on page 13 for further information on how
performance data was calculated.
Past performance is not predictive of future results.
9
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
SELECT EQUITY
PORTFOLIO
PORTFOLIO SUB-ADVISOR:
PROVIDENT CAPITAL MANAGEMENT
TOTAL ASSETS (3/31/97):
$473.1 MILLION
PERFORMANCE BENCHMARK:
S&P 500 INDEX
INVESTMENT APPROACH:
SEEKS LONG-TERM CAPITAL APPRECIATION BY MAINTAINING COMPARABLE SECTOR
WEIGHTINGS TO THE BENCHMARK WHILE OVERWEIGHTING OR UNDERWEIGHTING SPECIFIC
SECURITIES WITHIN THOSE SECTORS AS THE MANAGER IDENTIFIES MARKET OPPORTUNITY.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) THE MANAGER REPOSITIONED HOLDINGS WITHIN THE BANKING INDUSTRY.
PROFITS WERE TAKEN IN SECURITIES WHICH WERE FAIRLY VALUED (SUCH AS BANKAMERICA)
AND REDEPLOYED INTO MORE ATTRACTIVELY VALUED SECURITIES (BANK ONE).
(BULLET) THE MANAGER INCREASED POSTIONS IN SECURITIES SUCH AS MCDONALD'S
AND WAL-MART DUE TO THEIR LOW VALUATIONS RELATIVE TO THEIR HISTORICAL AVERAGES.
(BULLET) THE PORTFOLIO INITIATED NEW POSTIONS IN SELECT RETAIL STOCKS,
INCLUDING TOYS R US AND THE LIMITED, FOLLOWING LACKLUSTER CHRISTMAS SALES AND
THE RESULTANT DECLINE IN VALUATIONS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE SELECT EQUITY
PORTFOLIO AND THE S&P 500 INDEX FROM INCEPTION AND AT EACH FISCAL YEAR END.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
Institutional Service Investor A Investor B Investor C S&P 500
Class Class Class Class Class Index
9/15/93 10,000 10,000 9,550 10,000 10,000 10,000
9/30/93 9,970 9,970 9,521 9,970 9,970 10,206
12/31/93 10,114 10,108 9,653 10,108 10,108 10,208
3/31/94 9,730 9,718 9,278 9,715 9,715 9,922
6/30/94 9,783 9,766 9,331 9,770 9,770 9,826
9/30/94 10,148 10,124 9,659 10,114 10,114 9,879
12/31/94 9,987 9,958 9,498 9,945 9,945 9,917
3/31/95 10,911 10,872 10,366 10,855 10,855 10,420
6/30/95 11,704 11,643 11,098 11,621 11,621 11,059
9/30/95 12,561 12,497 11,908 12,470 12,470 11,268
12/31/95 13,312 13,223 12,595 13,189 13,189 11,757
3/31/96 13,989 13,898 13,221 13,844 13,844 11,552
6/30/96 14,629 14,513 13,812 14,443 14,443 11,609
9/30/96 15,054 14,924 14,197 14,821 14,821 11,825
12/31/96 16,469 16,316 15,528 16,160 16,160 12,182
3/31/97 16,903 16,735 15,922 16,540 16,540 12,118
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR FROM INCEPTION
------ --------------
Institutional Class 20.84% 15.94%
Service Class 20.42% 15.64%
Investor A Class (Load Adjusted) 15.00% 14.01%
Investor A Class (NAV) 20.43% 15.49%
Investor B Class (Load Adjusted) 14.10% 14.25%
Investor B Class (NAV) 19.48% 15.24%
Investor C Class 18.29% 14.82%
The performance information above includes information relating to each class of
the Portfolio since the commencement of operations of the Portfolio, rather than
the date such class was introduced. The inception dates of the Portfolio's share
classes were as follows: Institutional Shares, 9/13/93; Service Shares, 9/15/93;
Investor A Shares, 10/13/93; Investor B Shares, 3/27/96; and Investor C Shares,
9/27/96. See "Note on Performance Information" on page 13 for further
information on how performance data was calculated.
Past performance is not predictive of future results.
10
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
INDEX EQUITY
PORTFOLIO
ADVISOR TO THE INDEX MASTER PORTFOLIO:
DIMENSIONAL FUND ADVISORS INC.
TOTAL ASSETS (3/31/97):
$321.7 MILLION
PERFORMANCE BENCHMARK:
S&P 500 INDEX
INVESTMENT APPROACH:
UTILIZES A PASSIVE INVESTMENT STYLE THAT PURSUES THE REPLICATION OF THE S&P
500 INDEX TOTAL RETURN.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) THE PORTFOLIO HOLDS SUBSTANTIALLY ALL OF THE STOCKS CONTAINED IN
THE S&P 500 INDEX IN APPROXIMATELY THE SAME PROPORTION AS THEY ARE REPRESENTED
IN THE INDEX BY INVESTING IN THE U.S. LARGE COMPANY SERIES (THE "INDEX MASTER
PORTFOLIO") OF THE DFA INVESTMENT TRUST COMPANY. THE PORTFOLIO HAS INVESTED
SUBSTANTIALLY ALL OF ITS ASSETS IN THE INDEX MASTER PORTFOLIO SINCE JUNE 2,
1996.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE INDEX EQUITY
PORTFOLIO AND THE S&P 500 INDEX FROM INCEPTION AND AT EACH FISCAL YEAR END.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
Institutional Service Investor A Investor B Investor C S&P 500
Class Class Class Class Class Index
4/20/92 10,000 10,000 9,700 10,000 10,000 10,000
6/30/92 9,870 9,870 9,574 9,870 9,870 9,889
9/30/92 10,161 10,161 9,857 10,161 10,161 10,212
12/31/92 10,659 10,659 10,339 10,659 10,659 10,726
3/31/93 11,118 11,118 10,784 11,118 11,118 11,194
6/31/93 11,139 11,139 10,805 11,139 11,139 11,249
9/30/93 11,422 11,417 11,073 11,415 11,415 11,539
12/31/93 11,676 11,664 11,308 11,657 11,657 11,806
3/31/94 11,197 11,181 10,824 11,159 11,159 11,359
6/30/94 11,254 11,231 10,878 11,214 11,214 11,406
9/30/94 11,771 11,739 11,366 11,718 11,718 11,964
12/31/94 11,770 11,731 11,357 11,708 11,708 11,962
3/31/95 12,900 12,850 12,415 12,799 12,799 13,127
6/30/95 14,134 14,070 13,613 14,034 14,034 14,379
9/30/95 15,221 15,143 14,636 15,088 15,088 15,522
12/31/95 16,130 16,036 15,505 15,985 15,985 16,457
3/31/96 16,959 16,836 16,276 16,763 16,763 17,339
6/30/96 17,702 17,562 16,974 17,466 17,466 18,117
9/30/96 18,237 18,089 17,462 17,946 17,946 18,677
12/31/96 19,737 19,563 18,891 19,371 19,371 20,235
3/31/97 20,249 20,055 19,359 19,422 19,821 20,776
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR FROM INCEPTION
------ --------------
Institutional Class 19.41% 15.32%
Service Class 19.12% 15.09%
Investor A Class (Load Adjusted) 15.38% 14.27%
Investor A Class (NAV) 18.95% 14.98%
Investor B Class(Load Adjusted) 12.93% 14.35%
Investor B Class ( NAV) 18.25% 14.82%
Investor C Class 17.07% 14.82%
The performance information above includes information relating to each class of
the Portfolio since the commencement of operations of the Portfolio, rather than
the date such class was introduced. The inception dates of the Portfolio's share
classes were as follows: Institutional Shares, 4/20/92; Investor A Shares,
6/2/92; Service Shares, 7/29/93; Investor B Shares, 2/7/96; and Investor C
Shares, 8/14/96. See "Note on Performance Information" on page 13 for further
information on how performance data was calculated.
Past performance is not predictive of future results.
11
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
BALANCED
PORTFOLIO
PORTFOLIO SUB-ADVISOR:
Equity Portion: PROVIDENT CAPITAL MANAGEMENT
Fixed Income Portion: BLACKROCK FINANCIAL MANAGEMENT, INC.
TOTAL ASSETS (3/31/97):
$268.0 MILLION
PERFORMANCE BENCHMARK:
Equity Portion: S&P 500 INDEX
Fixed Income Portion: SALOMON BROAD INVESTMENT
GRADE INDEX
INVESTMENT APPROACH:
PURSUES A BLEND OF EQUITY AND FIXED INCOME SECURITIES TO DELIVER TOTAL
RETURN THROUGH CAPITAL APPRECIATION AND CURRENT INCOME. THE PORTFOLIO WILL
TYPICALLY MAINTAIN A 65% EQUITY AND 35% FIXED INCOME ASSET ALLOCATION.
RECENT PORTFOLIO MANAGEMENT ACTIVITY:
(BULLET) WITHIN THE EQUITY PORTION OF THE PORTFOLIO, THE WEAKNESS IN
TOBACCO STOCKS (PARTICULARLY PHILIP MORRIS) NEGATIVELY IMPACTED RETURNS FOR THE
FIRST QUARTER; HOWEVER, THE MANAGER REMAINS COMMITTED TO THIS POSITION AS THE
MARKET MAY HAVE OVERREACTED TO LITIGATION FEARS.
(BULLET) WITHIN THE FIXED INCOME PORTION, THE MANAGER SIGNIFICANTLY REDUCED
THE TREASURY/AGENCY ALLOCATION, REDEPLOYING ASSETS INTO SPREAD PRODUCT (WHICH
YIELDS A PREMIUM OVER TREASURIES) SUCH AS MORTGAGE-BACKED SECURITIES,
ASSET-BACKED SECURITIES AND CORPORATE BONDS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE BALANCED
PORTFOLIO AND S&P 500 /SALOMON BIG INDEX FROM INCEPTION AND AT EACH
FISCAL YEAR END.
[CHART GRAPHIC OMITTED]
[PLOT POINTS ARE AS FOLLOWS]
65% S&P 500,
Institutional Service Investor A Investor B Investor C 35% Salomon
Class Class Class Class Class BIG Index
5/14/90 10,000 10,000 9,550 10,000 10,000 10,000
6/30/90 10,240 10,240 9,779 10,240 10,240 10,304
9/30/90 9,236 9,236 8,821 9,236 9,236 9,875
12/31/90 9,998 9,998 9,548 9,998 9,998 10,510
3/31/91 10,827 10,827 10,340 10,827 10,827 11,227
6/30/91 10,796 10,796 10,310 10,796 10,796 11,347
9/30/91 11,459 11,459 10,943 11,459 11,459 11,978
12/31/91 12,243 12,243 11,692 12,243 12,243 12,720
3/31/92 12,165 12,165 11,618 12,165 12,165 12,512
6/30/92 12,469 12,469 11,908 12,469 12,469 12,923
9/30/92 13,197 13,197 12,603 13,197 13,197 13,426
12/31/92 13,690 13,690 13,074 13,690 13,690 13,689
3/31/93 14,160 14,160 13,523 14,160 14,160 14,269
6/30/93 14,481 14,481 13,829 14,481 14,481 14,549
9/30/93 14,894 14,888 14,215 14,885 14,885 14,929
12/31/93 15,309 15,294 14,600 15,288 15,288 15,053
3/31/94 14,821 14,797 14,109 14,774 14,774 14,580
6/30/94 14,647 14,615 13,941 14,598 14,598 14,507
9/30/94 14,875 14,833 14,144 14,810 14,810 14,806
12/31/94 14,827 14,776 14,082 14,725 14,725 14,842
3/31/95 15,802 15,741 14,996 15,666 15,666 15,837
6/30/95 16,989 16,910 16,105 16,788 16,788 16,994
9/30/95 17,900 17,789 16,950 17,640 17,640 17,673
12/31/95 18,936 18,805 17,914 18,613 18,613 18,543
3/31/96 19,418 19,285 18,351 19,033 19,033 18,683
6/30/96 20,002 19,837 18,884 19,547 19,547 19,033
9/30/96 20,484 20,301 19,320 19,956 19,956 19,466
12/31/96 21,871 21,661 20,609 21,245 21,245 20,415
3/31/97 22,143 21,913 20,844 21,452 21,452 20,537
For period ending March 31, 1997
AVERAGE ANNUAL TOTAL RETURN
1 YEAR 5 YEAR FROM INCEPTION
------ ------ --------------
Institutional Class 14.03% 12.73% 12.23%
Service Class 13.63% 12.49% 12.06%
Investor A Class (Load Adjusted) 8.44% 11.38% 11.26%
Investor A Class (NAV) 13.58% 12.41% 12.00%
Investor B Class (Load Adjusted) 7.61% 11.56% 11.72%
Investor B Class (NAV) 12.70% 12.01% 11.72%
Investor C Class 11.57% 12.01% 11.72%
The performance information above includes information relating to each class of
the Portfolio since the commencement of operations of the Portfolio, rather than
the date such class was introduced. The inception dates of the Portfolio's share
classes were as follows: Investor A Shares, 5/14/90; Institutional Shares,
5/1/92; Service Shares, 7/29/93; Investor B Shares, 10/3/94; and Investor C
Shares, 12/20/96. See "Note on Performance Information" on page 13 for further
information on how performance data was calculated.
Past performance is not predictive of future results.
12
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
NOTE ON PERFORMANCE INFORMATION
The performance information above includes information for each class of
each Portfolio since the commencement of operations of the Portfolio, rather
than the date such class was introduced. Performance information for each class
introduced after the commencement of operations of a Portfolio is therefore
based on the performance history of a predecessor class or predecessor classes.
If a class of shares in a Portfolio (the "Subsequent Class") has more than one
predecessor class, the performance data predating the introduction of the
Subsequent Class is based initially on the performance of the Portfolio's first
operational predecessor class (the "Initial Class"); thereafter, the performance
of the Subsequent Class is based upon the performance of any other predecessor
class or classes which were introduced after the Initial Class and which had
total operating expenses more similar to those of the Subsequent Class. In the
case of Investor A, Investor B, Investor C and Service Shares, the performance
information for periods prior to their introduction dates has not been restated
to reflect the shareholder servicing and processing and/or distribution fees and
certain other expenses borne by these share classes which, if reflected, would
reduce the performance quoted. Accordingly, the performance information may be
used in assessing each Portfolio's performance history but does not reflect how
the distinct classes would have performed on a relative basis prior to the
introduction of these classes, which would require an adjustment to the ongoing
expenses.
Performance information is restated to reflect the current maximum
front-end sales charge (in the case of Investor A Shares) or the maximum
contingent deferred sales charge (in the case of Investor B and Investor C
Shares), and assumes the reinvestment of dividends and distributions. The
maximum front-end sales charges for Investor A Shares are as follows: Large Cap
Value Equity, Large Cap Growth Equity, Small Cap Value Equity, Small Cap Growth
Equity, Mid-Cap Value Equity, Mid-Cap Growth Equity, Select Equity and Balanced
Portfolios -- 4.50%; International Equity and International Emerging Markets
Portfolios -- 5.00%; and Index Equity Portfolio -- 3.00%. The maximum contingent
deferred sales charge for Investor B Shares and Investor C Shares of all of the
Portfolios is 4.50% and 1.00%, respectively.
The performance information also reflects fee waivers that reduce the total
operating expenses of each Portfolio. The Portfolios' returns would have been
lower if there were not such waivers. PAMG and the Portfolio's Administrators
are under no obligation to waive or continue waiving their fees.
13
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
LARGE CAP VALUE EQUITY PORTFOLIO
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- -------------
COMMON STOCKS -- 98.5%
AEROSPACE -- 1.5%
Allied-Signal, Inc. 262,200 $ 18,681,750
-------------
AIR TRANSPORTATION -- 1.2%
Northwest Airlines Corp. -
Class A** 402,200 15,132,775
-------------
BANKS -- 13.5%
#Banc One Corp. 434,800 17,283,300
Bank of Boston Corp. 276,340 18,514,780
#Bank of New York Co., Inc. 417,800 15,354,150
#BankAmerica Corp. 150,700 15,183,025
Chase Manhattan Corp. 192,700 18,041,537
CoreStates Financial Corp. 430,933 20,469,317
Crestar Financial Corp. 365,600 12,658,900
First Chicago NBD Co. 368,268 19,932,505
First Union Corp. 103,700 8,412,662
Fleet Financial Group, Inc. 309,200 17,701,700
-------------
163,551,876
-------------
CHEMICALS -- 6.1%
Dow Chemical Co. 183,300 14,664,000
E.I. Du Pont de Nemours & Co. 94,825 10,051,450
IMC Fertilizer Group, Inc. 574,000 20,735,750
Lubrizol Corp. 365,200 11,869,000
PPG Industries, Inc. 301,900 16,302,600
-------------
73,622,800
-------------
COMPUTER & OFFICE EQUIPMENT -- 2.1%
Xerox Corp. 455,400 25,900,875
-------------
CONGLOMERATES -- 3.3%
#Elf Aquitaine ADR 121,100 5,964,175
#Royal Dutch Petroleum Co. 101,100 17,692,500
Ultramar Diamond Shamrock Corp. 507,464 16,111,982
-------------
39,768,657
-------------
ELECTRONICS -- 5.2%
Applied Materials, Inc.** 63,700 2,954,087
Avnet, Inc. 192,100 10,829,637
General Electric Co. 124,000 12,307,000
Rockwell International Corp.** 219,500 14,240,062
Texas Instruments, Inc. 130,800 9,793,650
Varian Associates, Inc. 241,300 12,909,550
-------------
63,033,986
-------------
ENERGY & UTILITIES -- 7.8%
Entergy Corp. 395,900 9,699,550
FPL Group, Inc. 401,600 17,720,600
#NIPSCO 286,600 11,249,050
Pacificorp 598,700 12,797,212
Peco Energy Co. 549,600 11,198,100
Southern Co. 962,100 20,324,362
Unicom Corp. 565,130 11,020,035
-------------
94,008,909
-------------
FINANCE -- 3.6%
#AMBAC, Inc. 137,700 8,881,650
Dean Witter Discover & Co. 569,672 19,867,311
#H & R Block, Inc. 491,100 14,426,062
-------------
43,175,023
-------------
FOOD & AGRICULTURE -- 1.0%
Archer Daniels Midland Co. 705,890 12,617,784
-------------
Number
of Shares Value
--------- -------------
INSURANCE -- 5.0%
Aetna, Inc. 130,600 $ 11,215,275
Allstate Corp. 154,024 9,145,175
Chubb Corp. 234,300 12,622,912
Cigna Corp. 54,700 7,993,037
MBIA, Inc. 83,100 7,967,212
TIG Holdings, Inc. 66,900 2,124,075
USF&G Corp. 413,800 8,896,700
-------------
59,964,386
-------------
MACHINE TOOLS, METAL CUTTING TYPES -- 2.0%
Black & Decker Corp. 748,300 24,039,137
-------------
MACHINERY & HEAVY EQUIPMENT -- 3.3%
#Cooper Industries, Inc. 312,000 13,533,000
#Deere & Co. 431,500 18,770,250
Dover Corp. 136,200 7,150,500
-------------
39,453,750
-------------
MEDICAL & MEDICAL SERVICES -- 0.5%
Foundation Health Co.** 167,000 6,095,500
-------------
METAL & MINING -- 2.9%
#Aluminum Co. of America 140,000 9,520,000
Phelps Dodge Corp. 250,000 18,281,250
Reynolds Metals Co. 112,300 6,962,600
-------------
34,763,850
-------------
MOTOR VEHICLES -- 5.5%
Chrysler Corp. 411,800 12,354,000
Dana Corp. 405,100 13,317,663
Ford Motor Co. 507,500 15,922,813
General Motors Corp. 201,804 11,174,897
Goodyear Tire & Rubber Co. 275,300 14,384,425
-------------
67,153,798
-------------
OIL & GAS -- 6.2%
Atlantic Richfield Co. 94,700 12,784,500
Chevron Corp. 185,500 12,915,438
Exxon Corp. 123,900 13,350,225
Mobil Corp. 106,100 13,859,313
Phillips Petroleum Co. 318,300 13,010,513
#Tenneco Inc.** 227,600 8,876,400
-------------
74,796,389
-------------
PAPER & FOREST PRODUCTS -- 2.3%
#Champion International Corp. 295,700 13,454,350
International Paper Co. 376,700 14,644,213
-------------
28,098,563
-------------
PHARMACEUTICALS -- 3.1%
American Home Products Corp. 110,300 6,618,000
Bristol-Myers Squibb Co. 164,400 9,699,600
Eli Lilly & Co. 118,400 9,738,400
Merck & Co., Inc. 130,050 10,956,713
-------------
37,012,713
-------------
RETAIL MERCHANDISING -- 7.0%
#Federated Department Stores, Inc.** 277,900 9,135,963
Fingerhut Cos., Inc. 608,500 8,519,000
J.C. Penney Co., Inc. 417,200 19,869,150
#K Mart Corp.** 919,300 11,146,513
Kroger Co. 306,900 15,575,175
Limited, Inc. 322,700 5,929,613
Sears, Roebuck & Co. 64,600 3,246,150
Toys "R" Us, Inc.** 414,100 11,594,800
-------------
85,016,364
-------------
See accompanying notes to financial statements.
14
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
LARGE CAP VALUE EQUITY PORTFOLIO (CONCLUDED)
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- --------------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS -- 9.5%
#AT&T Corp. 546,800 $ 19,001,300
#Bell Atlantic Corp. 250,700 15,261,363
GTE Corp. 418,600 19,517,225
NYNEX Corp. 329,400 15,028,875
Pacific Telesis Group 198,900 7,508,475
#Sprint Corp. 437,900 19,924,450
US West Communications Group 535,000 18,190,000
-------------
114,431,688
-------------
TEXTILES -- 0.7%
Fruit of the Loom, Inc. 195,900 8,129,850
-------------
TOBACCO -- 3.8%
Philip Morris Cos., Inc. 232,300 26,511,238
UST, Inc. 694,600 19,361,975
-------------
45,873,213
-------------
TRANSPORTATION -- 1.4%
CSX Corp. 234,300 10,894,950
Norfolk Southern Corp. 78,400 6,683,600
-------------
17,578,550
-------------
TOTAL COMMON STOCKS
(Cost $1,029,048,928) 1,191,902,186
-------------
Par
Maturity (000)
---------- --------
SHORT TERM INVESTMENTS -- 1.5%
Federal Home Loan Bank Discount Notes
6.25% 04/01/97 $18,100 18,100,000
Smith Barney Money Market Fund 81 80,752
-------------
TOTAL SHORT TERM INVESTMENTS
(Cost $18,180,752) 18,180,752
-------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,047,229,680*) 100.0% 1,210,082,938
LIABILITIES IN EXCESS OF
OTHER ASSETS 0.0% (111,497)
------ -------------
Value
--------------
NET ASSETS (Applicable to 46,631,139
Institutional shares, 34,534,436 Service
shares, 2,512,793 Investor A shares,
662,527 Investor B shares and 45,397
Investor C shares outstanding) 100.0% 1,209,971,441
====== =============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($668,740,647 (DIVIDE) 46,631,139) $14.34
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SERVICE SHARE
($495,085,497 (DIVIDE) 34,534,436) $14.34
======
NET ASSET VALUE AND
REDEMPTION PRICE PER
INVESTOR A SHARE
($36,031,634 (DIVIDE) 2,512,793) $14.34
======
MAXIMUM OFFERING PRICE
PER INVESTOR A SHARE
($14.34 (DIVIDE) .955) $15.02
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 4.5%)
PER INVESTOR B SHARE
($9,465,086 (DIVIDE) 662,527) $14.29
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 1.0%)
PER INVESTOR C SHARE
($648,577 (DIVIDE) 45,397) $14.29
======
- ---------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
Gross unrealized appreciation $187,966,272
Gross unrealized depreciation (25,113,014)
------------
$162,853,258
============
** Non-income producing security.
# Total or partial securities on loan.
See accompanying notes to financial statements.
15
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
LARGE CAP GROWTH EQUITY PORTFOLIO
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- --------------
COMMON STOCKS -- 98.4%
ADVERTISING -- 0.7%
Omnicom Group, Inc. 85,900 $ 4,284,262
------------
AEROSPACE -- 2.8%
Allied-Signal, Inc. 79,600 5,671,500
McDonnell Douglas Corp. 95,800 5,843,800
United Technologies Corp. 86,900 6,539,225
------------
18,054,525
------------
AIR TRANSPORTATION -- 1.3%
Atlas Air, Inc.** 220,900 5,798,625
#Southwest Airlines 104,600 2,314,275
------------
8,112,900
------------
BANKS -- 5.2%
BankAmerica Corp. 58,900 5,934,175
Chase Manhattan Corp. 89,900 8,416,887
Great Western Financial Corp. 162,500 6,560,937
#H.F. Ahmanson & Co. 43,600 1,591,400
MBNA Corp. 110,600 3,082,975
Wells Fargo & Co. 28,700 8,154,387
------------
33,740,761
------------
BEVERAGES -- 2.7%
Panamerican Beverages, Inc.
Class A 71,300 3,823,462
Pepsico, Inc. 421,300 13,744,912
------------
17,568,374
------------
BROADCASTING -- 1.1%
Clear Channel Communications, Inc. 169,000 7,245,875
------------
CHEMICALS -- 0.9%
#PPG Industries, Inc. 43,800 2,365,200
W.R. Grace & Co. 68,500 3,245,187
------------
5,610,387
------------
COMPUTER & OFFICE EQUIPMENT -- 4.3%
3Com Corp.** 87,900 2,878,725
Computer Associates
International, Inc. 82,300 3,199,412
#Dell Computer Corp. 90,900 6,147,112
Harris Corp. 42,900 3,297,937
#HBO & Co. 187,900 8,925,250
International Business Machines
Corp. 20,800 2,857,400
Office Depot, Inc.** 49,100 1,000,412
------------
28,306,248
------------
COMPUTER SOFTWARE & SERVICES -- 7.5%
Cisco Systems, Inc.** 171,500 8,253,437
First Data Corp. 186,900 6,331,237
Gulfstream Aerospace Corp.** 250,000 5,437,500
Microsoft Corp. 169,900 15,577,706
Oracle Corp. 83,550 3,221,897
Parametric Technology Corp.** 221,800 10,008,725
------------
48,830,502
------------
CONTAINERS -- 1.1%
Crown Cork & Seal Co., Inc. 64,400 3,324,650
Sealed Air Corp.** 86,200 3,544,975
------------
6,869,625
------------
CREDIT INSTITUTIONS -- 0.4%
First USA Paymentech, Inc.** 111,700 2,918,163
------------
Number
of Shares Value
--------- ------------
ELECTRONICS -- 10.1%
#Adaptec, Inc. 128,400 $ 4,590,300
General Electric Co. 140,200 13,914,850
Hewlett Packard Co. 134,100 7,140,825
Intel Corp. 216,900 30,176,213
Motorola, Inc. 52,200 3,151,575
#Nokia Corp. ADR 116,400 6,780,300
------------
65,754,063
------------
ENTERTAINMENT & LEISURE -- 4.2%
Carnival Corp., Class A 105,600 3,907,200
#Circus Circus Enterprises, Inc.** 177,600 4,617,600
HFS, Inc.** 78,700 4,633,463
Marriott International, Inc. 98,200 4,885,450
#Mirage Resorts, Inc. 242,300 5,148,875
Walt Disney Co. 52,600 3,839,800
------------
27,032,388
------------
FINANCE -- 3.6%
Citicorp 30,800 3,334,100
Fannie Mae 226,400 8,178,700
Golden West Financial Corp. 27,100 1,700,525
Household International, Inc. 42,600 3,668,925
#Reuters Holdings PLC ADR 108,900 6,336,619
------------
23,218,869
------------
FOOD & AGRICULTURE -- 1.6%
Campbell Soup Co. 102,200 4,739,525
Conagra, Inc. 102,400 5,555,200
------------
10,294,725
------------
INSURANCE -- 4.0%
Ace, Ltd. 87,700 5,612,800
#Aetna, Inc. 98,800 8,484,450
American International Group, Inc. 29,100 3,415,613
General Re Corp. 21,900 3,460,200
Mid Ocean Ltd. 108,900 5,199,975
------------
26,173,038
------------
MACHINERY & HEAVY EQUIPMENT -- 2.0%
Illinois Tool Works, Inc. 83,700 6,832,013
#Millipore Corp. 145,000 6,144,375
------------
12,976,388
------------
MEDICAL & MEDICAL SERVICES -- 5.3%
Healthsouth Corp. 568,800 10,878,300
Medpartners, Inc.** 458,671 9,746,759
Medtronic, Inc. 90,300 5,621,175
Pacificare Health Systems, Inc.
Class B** 46,000 3,967,500
#United Healthcare Corp. 90,900 4,329,113
------------
34,542,847
------------
MEDICAL INSTRUMENTS & SUPPLIES -- 1.0%
#Boston Scientific Corp.** 103,000 6,360,250
------------
METAL & MINING -- 0.2%
Worthington Industries, Inc. 84,100 1,608,413
------------
MOTOR VEHICLES -- 0.7%
Harley-Davidson, Inc. 135,500 4,590,063
------------
OIL & GAS -- 0.8%
Transocean Offshore, Inc. 97,800 5,489,025
------------
PAPER & FOREST PRODUCTS -- 1.1%
Kimberly-Clark Corp. 70,500 7,005,938
------------
See accompanying notes to financial statements.
16
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
LARGE CAP GROWTH EQUITY PORTFOLIO (CONCLUDED)
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS -- 13.4%
American Home Products Corp. 141,000 $ 8,460,000
Bristol-Myers Squibb Co. 166,200 9,805,800
Eli Lilly & Co. 50,100 4,120,725
Johnson & Johnson 131,200 6,937,200
Merck & Co., Inc. 278,900 23,497,325
Pfizer, Inc. 135,300 11,382,113
Smithkline Beecham PLC 195,900 13,713,000
Warner-Lambert Co. 109,000 9,428,500
------------
87,344,663
------------
PUBLISHING -- 0.5%
Scholastic Corp.** 118,700 3,353,275
------------
REAL ESTATE -- 0.6%
Spieker Properties, Inc. 107,700 4,200,300
------------
RETAIL MERCHANDISING -- 8.2%
Gap, Inc. 186,400 6,244,400
Kroger Co. 97,200 4,932,900
Mattel, Inc. 239,600 5,750,400
#PetSmart, Inc. 253,800 5,139,450
Saks Holdings, Inc.** 104,300 2,998,625
Sears, Roebuck & Co. 76,200 3,829,050
Service Corp. International 295,400 8,788,150
#Staples, Inc.** 365,500 7,355,688
Wal-Mart Stores, Inc. 289,200 8,061,450
------------
53,100,113
------------
SOAPS & COSMETICS -- 4.2%
Avon Products, Inc. 60,000 3,150,000
Colgate-Palmolive Co. 71,900 7,163,038
Estee Lauder Cos. 72,400 3,502,350
#Procter & Gamble Co. 116,600 13,409,000
------------
27,224,388
------------
STRUCTURAL CLAY PRODUCTS -- 1.7%
Schering Plough Corp. 151,800 11,043,450
------------
TELECOMMUNICATIONS -- 2.6%
Ericsson L.M. Telephone ADR 222,700 7,530,044
#World Communications, Inc. 419,520 9,229,440
------------
16,759,484
------------
TEXTILES -- 0.5%
Nike, Inc. 56,400 3,496,800
------------
TOBACCO -- 4.1%
Philip Morris Cos., Inc. 233,800 26,682,425
------------
TOTAL COMMON STOCKS
(Cost $512,386,708) 639,792,527
------------
Par
Maturity (000) Value
---------- -------- ------------
SHORT TERM INVESTMENTS -- 1.2%
Federal Home Loan Bank Discount Notes
5.75% 04/01/97 $7,170 $ 7,170,000
U.S. Treasury Bills
5.14% 06/19/97 750*** 741,358
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $7,911,532) 7,911,358
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $520,298,240*) 99.6% 647,703,885
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.4% 2,386,781
------- ------------
NET ASSETS (Applicable to 28,655,821
Institutional shares, 14,098,880 Service
shares, 1,319,237 Investor A shares,
299,304 Investor B shares and 1,028
Investor C shares outstanding) 100.0% $650,090,666
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($419,832,803 (DIVIDE) 28,655,821) $14.65
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SERVICE SHARE
($206,568,127 (DIVIDE) 14,098,880) $14.65
======
NET ASSET VALUE AND
REDEMPTION PRICE PER
INVESTOR A SHARE
($19,325,021 (DIVIDE) 1,319,237) $14.65
======
MAXIMUM OFFERING PRICE
PER INVESTOR A SHARE
($14.65 (DIVIDE) .955) $15.34
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 4.5%)
PER INVESTOR B SHARE
($4,349,780 (DIVIDE) 299,304) $14.53
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 1.0%)
PER INVESTOR C SHARE
($14,935 (DIVIDE) 1,028) $14.53
======
- ------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
Gross unrealized appreciation $144,153,014
Gross unrealized depreciation (16,747,369)
------------
$127,405,645
------------
** Non-income producing security.
*** Principal amount of securities pledged as initial margin requirement of
$600,000 on 40 Standard & Poor's 500 Stock Index futures contracts expiring
June 1997. The value of such contracts on March 31, 1997 was $15,510,000,
thereby resulting in an unrealized loss of $1,294,000.
# Total or partial securities on loan.
See accompanying notes to financial statements.
17
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
MID-CAP VALUE EQUITY PORTFOLIO
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS -- 95.2%
AIR TRANSPORTATION -- 1.8%
Northwest Airlines Corp. Class A** 17,300 $ 650,912
UAL Corp.** 9,200 595,700
------------
1,246,612
------------
AUTOMOTIVE -- 1.1%
Lear Corp.** 21,700 724,237
------------
BANKS -- 11.1%
Amsouth Bancorp. 14,700 709,275
Bancorp Hawaii, Inc. 15,900 681,712
Compass Bancshares, Inc. 19,100 849,950
Dauphin Deposit Corp. 15,100 626,650
First American Corp. - Tennessee 10,600 674,425
First Hawaiian, Inc. 26,300 818,587
First Virginia Banks, Inc. 14,500 743,125
Signet Banking Corp. 28,500 840,750
Union Planters Corp. 18,400 747,500
Washington Federal, Inc. 37,580 854,945
------------
7,546,919
------------
BUSINESS SERVICES -- 1.0%
Varian Associates, Inc. 12,200 652,700
------------
CHEMICALS -- 3.6%
Albemarle Corp. 40,800 729,300
Arco Chemical Co. 14,900 648,150
Asarco, Inc. 10,800 303,750
Ashland, Inc. 19,500 784,875
------------
2,466,075
------------
COMPUTER & OFFICE EQUIPMENT -- 2.3%
Harris Corp. 9,400 722,625
Komag, Inc.** 29,000 880,875
------------
1,603,500
------------
CONSTRUCTION -- 5.3%
Centex Corp. 21,600 761,400
Harsco Corp. 21,300 774,787
Martin Marietta Materials, Inc. 25,000 643,750
USG Corp.** 19,700 618,087
Vulcan Materials Co. 12,200 791,475
------------
3,589,499
------------
CONTAINERS -- 1.0%
Owens-Illinois, Inc.** 27,200 669,800
------------
DURABLE GOODS -- 3.2%
Limited, Inc. 41,400 760,725
Whirlpool Corp. 16,200 771,525
York International Corp. 15,100 632,312
------------
2,164,562
------------
ELECTRONICS -- 8.0%
Arrow Electronics, Inc.** 13,600 766,700
Avnet, Inc. 13,000 732,875
Boston Edison Co. 30,000 787,500
DPL, Inc. 32,300 779,237
Florida Progress Corp. 26,000 789,750
Lam Research Corp.** 23,300 786,375
SCI Systems, Inc.** 15,600 789,750
------------
5,432,187
------------
Number
of Shares Value
---------- ------------
ENERGY & UTILITIES -- 8.4%
Cipsco, Inc. 18,900 $ 668,587
Illinova Corp. 9,600 219,600
Ipalco Enterprises, Inc. 14,700 446,512
LG&E Energy Corp. 33,200 800,950
NIPSCO Industries, Inc. 20,200 792,850
Public Service Co. of Colorado 17,700 685,875
Scana Corp. 25,100 636,912
Sierra Pacific Resources 24,200 710,875
Valero Energy Corp. 21,900 796,612
------------
5,758,773
------------
ENTERTAINMENT & LEISURE -- 1.1%
Harrah's Entertainment, Inc.** 42,400 726,100
------------
FINANCE -- 2.5%
Advanta Corp. Class B 8,800 227,700
Countrywide Credit Industries, Inc. 27,000 668,250
Donaldson, Lufkin & Jenrette, Inc. 22,900 838,713
------------
1,734,663
------------
FOOD & AGRICULTURE -- 2.2%
IBP, Inc. 30,500 751,063
SUPERVALU, Inc. 25,800 767,550
------------
1,518,613
------------
GLASS PRODUCTS -- 1.3%
Fisher Scientific International, Inc. 20,100 886,913
------------
INSURANCE -- 8.1%
Allmerica Financial Corp. 21,600 758,700
American Financial Group, Inc. 17,900 653,350
Everest Reinsurance Holdings, Inc. 27,200 799,000
Old Republic International Corp. 24,900 638,063
Partnerre Ltd. 23,300 824,238
Protective Life Corp. 18,000 756,000
Reliastar Financial Corp.** 12,800 756,800
U.S. Life Corp. 6,600 308,550
------------
5,494,701
------------
MACHINERY & HEAVY EQUIPMENT -- 2.3%
Case Corp. 15,000 761,250
Cooper Industries, Inc. 18,100 785,088
------------
1,546,338
------------
MEDICAL & MEDICAL SERVICES -- 4.7%
Apria Healthcare Group, Inc.** 40,400 732,250
Bergen Brunswig Corp. 22,100 657,475
Health Systems International, Inc.** 19,700 554,063
Tenet Healthcare Corp.** 28,500 701,813
Wellpoint Health Networks, Inc.** 14,200 589,300
------------
3,234,901
------------
MEDICAL INSTRUMENTS & SUPPLIES -- 1.2%
Beckman Instruments, Inc. 18,900 793,800
------------
METAL & MINING -- 1.2%
Reynolds Metals Co. 12,900 799,800
------------
MISCELLANEOUS SERVICES -- 2.1%
ITT Industries, Inc. 28,200 630,975
Tecumseh Products Co. Class A 13,800 786,600
------------
1,417,575
------------
See accompanying notes to financial statements.
18
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
MID-CAP VALUE EQUITY PORTFOLIO (CONCLUDED)
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS (CONTINUED)
MOTOR VEHICLES -- 3.1%
Cooper Tire & Rubber Co. 32,300 $ 597,550
Echlin, Inc. 24,200 822,800
Fleetwood Enterprises, Inc.** 27,300 682,500
------------
2,102,850
------------
OIL & GAS -- 4.1%
Mitchell Energy & Development Corp. 42,400 869,200
Parker & Parsley Pertoleum Co.** 25,700 758,150
Pennzoil Co. 14,100 729,675
Sun Co., Inc. 15,900 415,388
------------
2,772,413
------------
PAPER & FOREST PRODUCTS -- 4.2%
Champion International, Inc. 18,300 832,650
Mead Corp. 11,200 593,600
Rayonier, Inc. 18,900 704,025
Union Camp Corp. 16,000 754,000
------------
2,884,275
------------
REAL ESTATE -- 3.4%
Equity Residential Properties Trust 19,100 847,563
Health & Retirement Property Trust 43,500 783,000
Simon Property Group, Inc. 23,600 713,900
------------
2,344,463
------------
RESTAURANTS -- 0.8%
Darden Restaurants** 71,700 564,638
------------
RETAIL MERCHANDISING -- 2.2%
Circuit City Stores, Inc. 21,100 704,213
Dillard Department Stores, Inc. 26,200 825,300
------------
1,529,513
------------
TELECOMMUNICATIONS -- 2.3%
Frontier Corp. 36,200 647,075
Southern New England
Telecommunications Corp. 25,000 896,875
------------
1,543,950
------------
TRANSPORTATION -- 1.0%
Kansas City Southern Industries, Inc. 14,000 700,000
------------
TRAVEL & RECREATION -- 0.6%
Royal Caribbean Cruises Ltd. 14,500 442,250
------------
TOTAL COMMON STOCKS
(Cost $65,580,643) 64,892,620
------------
Par
Maturity (000)
---------- ----------
SHORT TERM INVESTMENTS -- 4.6%
Federal Home Loan Bank
Discount Notes
6.25% 04/01/97 $2,800 2,800,000
Smith Barney Money Market Fund 298 298,288
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $3,098,288) 3,098,288
-----------
Value
-----------
TOTAL INVESTMENTS IN
SECURITIES
(Cost $68,678,931*) 99.8% $67,990,908
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.2% 154,220
------ -----------
NET ASSETS (Applicable to 5,684,315
Institutional shares, 981,367 Service
shares, 70,383 Investor A shares, 44,816
Investor B shares and 1,014
Investor C shares outstanding) 100.0% $68,145,128
====== ===========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($57,121,550 (DIVIDE) 5,684,315) $10.05
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SERVICE SHARE
($9,856,966 (DIVIDE) 981,367) $10.04
======
NET ASSET VALUE AND
REDEMPTION PRICE PER
INVESTOR A SHARE
($706,624 (DIVIDE) 70,383) $10.04
======
MAXIMUM OFFERING PRICE
PER INVESTOR A SHARE
($10.04 (DIVIDE) .955) $10.51
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 4.5%)
PER INVESTOR B SHARE
($449,805 (DIVIDE) 44,816) $10.04
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 1.0%)
PER INVESTOR C SHARE
($10,183 (DIVIDE) 1,014) $10.04
======
- --------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
Gross unrealized appreciation $ 1,640,373
Gross unrealized depreciation $(2,328,396)
-----------
$ (688,023)
===========
** Non-income producing security.
See accompanying notes to financial statements.
19
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
MID-CAP GROWTH EQUITY PORTFOLIO
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- -----------
COMMON STOCKS -- 83.4%
BUSINESS SERVICES -- 2.9%
Apollo Group, Inc.** 20,200 $ 494,900
Quintiles Transnational Corp.** 7,200 387,900
Robert Half International, Inc.** 28,800 1,004,400
-----------
1,887,200
-----------
COMPUTER & OFFICE EQUIPMENT -- 1.7%
Cambridge Technology Partners,
Inc.** 19,800 457,875
Gateway 2000, Inc.** 12,000 615,000
-----------
1,072,875
-----------
COMPUTER SOFTWARE & SERVICES -- 9.0%
Acxiom Corp.** 12,400 178,250
Baan Company NV** 21,300 950,512
BMC Software, Inc.** 19,000 876,375
CBT Group PLC** 11,900 593,512
Comverse Technology, Inc.** 20,500 809,750
Gartner Group, Inc.** 14,800 320,050
Parametric Technology Corp.** 11,500 518,937
Pegasystems, Inc.** 8,600 173,075
Peoplesoft, Inc.** 11,000 440,000
Rational Software Corp.** 6,000 123,750
Remedy Corp.** 8,700 332,775
Sterling Commerce, Inc.** 15,600 452,400
-----------
5,769,386
-----------
CONSTRUCTION -- 0.6%
Oakwood Homes Corp. 20,500 361,312
-----------
ELECTRONICS -- 7.5%
Adaptec, Inc.** 20,400 729,300
Altera Corp.** 20,000 860,000
Concord EFS, Inc.** 22,900 429,375
Electronics For Imaging, Inc.** 23,400 933,075
Linear Technology Corp.** 14,000 619,500
Maxim Integrated Products, Inc.** 12,700 614,362
Vitesse Semiconductor, Inc.** 22,000 607,750
-----------
4,793,362
-----------
ENTERTAINMENT & LEISURE -- 2.0%
Doubletree Corp.** 14,400 511,200
Regal Cinemas, Inc.** 28,700 774,900
-----------
1,286,100
-----------
FINANCE -- 6.6%
Capital One Financial Corp. 26,300 979,675
First USA, Inc. 22,500 953,437
Green Tree Financial Corp. 17,500 590,625
MGIC Investment Corp. 14,300 1,011,725
The Money Store, Inc. 33,000 693,000
-----------
4,228,462
-----------
INSURANCE -- 2.4%
Conseco, Inc. 25,900 922,687
Oxford Health Plans, Inc.** 10,000 586,250
-----------
1,508,937
-----------
JEWELRY -- 1.4%
Tiffany & Co. 23,200 881,600
-----------
MEDICAL & MEDICAL SERVICES -- 9.1%
Dura Pharmaceuticals, Inc.** 22,900 818,675
Genesis Health Ventures, Inc.** 31,100 971,875
HBO & Co. 16,700 793,250
Health Management Associates,
Inc.** 39,300 933,375
Number
of Shares Value
---------- -----------
MEDICAL & MEDICAL SERVICES (CONTINUED)
Healthsouth Corp.** 52,300 $ 1,000,237
Medpartners, Inc.** 33,900 720,375
Universal Health Services Class B** 18,000 591,750
-----------
5,829,537
-----------
MEDICAL INSTRUMENTS & SUPPLIES -- 4.8%
Biogen, Inc.** 14,000 523,250
Cardinal Health, Inc. 18,000 978,750
Guidant Corp.** 12,000 738,000
Sofamor Danek Group, Inc.** 11,400 411,825
Stryker Corp.** 18,300 455,213
-----------
3,107,038
-----------
MISCELLANEOUS SERVICES -- 0.8%
Corrections Corporation of America** 20,100 487,425
-----------
OIL & GAS -- 9.2%
ENSCO International, Inc.** 20,700 1,019,475
Global Industries, Ltd.** 27,100 579,263
Global Marine, Inc.** 45,000 967,500
Petroleum Geo Services** 23,900 1,027,700
Reading & Bates Corp.** 36,700 830,338
Smith International, Inc.** 18,500 844,063
Tidewater, Inc.** 13,700 630,200
-----------
5,898,539
-----------
PHARMACEUTICALS -- 3.6%
Biochem Pharmaceutical, Inc.** 11,300 485,900
Jones Medical Industries, Inc. 21,600 518,400
Omnicare, Inc. 20,000 470,000
Watson Pharmaceuticals, Inc.** 22,700 811,525
-----------
2,285,825
-----------
RESTAURANTS -- 2.7%
Boston Chicken, Inc.** 18,300 558,150
Cracker Barrel Old Country Store,
Inc. 28,400 741,950
Papa John's International, Inc.** 16,600 437,825
-----------
1,737,925
-----------
RETAIL MERCHANDISING -- 10.3%
Barnes & Noble, Inc.** 19,000 674,500
Borders Group, Inc.** 45,800 864,475
Catalina Marketing Corp.** 12,100 491,563
Consolidated Stores Corp.** 19,000 669,750
Dollar General Corp. 29,000 906,250
Dollar Tree Stores, Inc.** 19,600 725,200
Kohls Corp.** 20,000 847,500
Proffitt's, Inc.** 21,300 804,075
Starbucks Corp.** 21,800 645,825
-----------
6,629,138
-----------
TELECOMMUNICATIONS -- 4.4%
ADC Telecommunications, Inc.** 8,600 231,125
APAC Teleservices, Inc.** 14,000 364,000
Ascend Communications, Inc.** 5,800 236,350
PairGain Technologies, Inc.** 21,700 642,863
Precision Response Corp.** 17,700 418,163
Tellabs, Inc.** 25,600 924,800
-----------
2,817,301
-----------
TEXTILES -- 1.1%
Jones Apparel Group, Inc.** 18,300 679,388
-----------
See accompanying notes to financial statements.
20
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
MID-CAP GROWTH EQUITY PORTFOLIO (CONCLUDED)
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- -----------
COMMON STOCKS (CONTINUED)
WASTE MANAGEMENT -- 3.3%
United Waste Systems, Inc.** 29,800 $ 1,110,050
USA Waste Services, Inc.** 27,900 990,450
-----------
2,100,500
-----------
TOTAL COMMON STOCKS
($58,704,819) 53,361,850
-----------
Par
Maturity (000)
---------- ----------
SHORT TERM INVESTMENTS -- 25.0%
Federal Home Loan Bank
Discount Notes
6.25% 04/01/97 $15,325 15,325,000
Smith Barney Money Market Fund 2 2,375
U.S. Treasury Bills
5.09% 05/29/97 152 150,692
5.00% 06/19/97 102*** 100,825
5.14% 06/19/97 435*** 429,988
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $16,009,097) 16,008,880
-----------
TOTAL INVESTMENTS IN
SECURITIES
(Cost $74,713,916*) 108.4% 69,370,730
LIABILITIES IN EXCESS OF
OTHER ASSETS (8.4%) (5,348,077)
------ -----------
NET ASSETS (Applicable to 5,969,305
Institutional shares, 1,037,893 Service
shares, 97,803 Investor A shares,
60,982 Investor B shares and 1,149
Investor C shares outstanding) 100.0% $64,022,653
====== ===========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($53,331,179 (DIVIDE) 5,969,305) $8.93
=====
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SERVICE SHARE
($9,265,009 (DIVIDE) 1,037,893) $8.93
=====
NET ASSET VALUE AND
REDEMPTION PRICE PER
INVESTOR A SHARE
($872,026 (DIVIDE) 97,803) $8.92
=====
MAXIMUM OFFERING PRICE PER
INVESTOR A SHARE
($8.92 (DIVIDE) .955) $9.34
=====
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 4.5%)
PER INVESTOR B SHARE
($544,184 (DIVIDE) 60,982) $8.92
=====
Value
--------
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 1.0%)
PER INVESTOR C SHARE
($10,255 (DIVIDE) 1,149) $8.92
=====
- -----------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
Gross unrealized appreciation $ 873,636
Gross unrealized depreciation $(6,216,822)
-----------
$(5,343,186)
===========
** Non-income producing security.
*** Principal amount of securities pledged as initial margin requirement of
$480,000 on 32 Standard & Poor's 500 Stock Index futures contracts expiring
June 1997. The value of such contracts on March 31, 1997 was $12,128,000,
thereby resulting in an unrealized loss of $971,200.
See accompanying notes to financial statements.
21
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
SMALL CAP VALUE EQUITY PORTFOLIO
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- -----------
COMMON STOCKS -- 96.1%
AIR TRANSPORTATION -- 1.0%
#Alaska Air Group, Inc.** 138,500 $ 3,549,062
-----------
BANKS -- 9.3%
Albank Financial Corp. 155,952 5,672,754
#BankAtlantic Bancorp, Inc. Class A 148,863 1,749,140
BankAtlantic Bancorp, Inc. Class B 314,724 3,973,390
Banknorth Group, Inc. 119,400 4,835,700
Commerce Bancorp, Inc. 180,060 4,951,650
ML Bancorp, Inc. 183,900 2,827,462
ONBANCorp, Inc. 74,100 3,464,175
Standard Federal Bancorp. 16,000 928,000
Susquehanna Bancshares, Inc. 130,600 4,293,475
-----------
32,695,746
-----------
CHEMICALS -- 0.9%
Bush Boake Allen, Inc.** 118,800 3,059,100
-----------
COMPUTER & OFFICE EQUIPMENT -- 1.6%
Bell and Howell Co.** 124,600 2,601,025
Bell Micro Products, Inc.** 234,100 2,867,725
-----------
5,468,750
-----------
COMPUTER SOFTWARE & SERVICES -- 0.3%
Computer Horizons Corp.** 29,700 920,700
-----------
CONSTRUCTION -- 5.1%
Beazer Homes USA, Inc.** 225,300 3,323,175
BMC West Corp. 195,600 2,249,400
Charter Power Systems, Inc. 136,600 4,422,425
Oakwood Homes Corp. 211,200 3,722,400
Pacific Graystone Corp.** 346,400 4,330,000
-----------
18,047,400
-----------
CONTAINERS -- 0.9%
Silgan Holdings, Inc.** 126,500 3,162,500
-----------
DURABLE GOODS -- 2.4%
Kellwood Co. 164,800 4,120,000
Wellman, Inc. 240,100 4,201,750
-----------
8,321,750
-----------
ELECTRONICS -- 10.7%
Belden, Inc. 77,340 2,755,237
Berg Electronics Corp.** 150,100 4,277,850
Cable Design Technologies** 66,900 1,488,525
Dallas Semiconductor Corp. 189,600 5,024,400
Electro Scientific Industries,
Inc.** 144,300 3,643,575
Franklin Electronic Publishers,
Inc.** 184,800 2,171,400
Holophane Corp.** 210,900 4,112,550
Lam Research Corp.** 45,700 1,542,375
Lattice Semiconductor Corp.** 68,800 3,147,600
Mark IV Industries, Inc. 156,900 3,687,150
Marshall Industries** 76,400 2,406,600
Park Electrochemical Corp. 143,300 3,277,987
-----------
37,535,249
-----------
ENERGY & UTILITIES -- 5.1%
Central Louisiana Electric Co. 77,900 2,044,875
Cilcorp, Inc. 58,400 2,219,200
Eastern Enterprises 50,000 1,543,750
#IES Industries, Inc. 101,590 2,933,411
Piedmont Natural Gas, Inc. 76,500 1,759,500
Public Service Co. 56,500 974,625
Sierra Pacific Resources 87,640 2,574,425
Number
of Shares Value
---------- -----------
ENERGY & UTILITIES (CONTINUED)
TNP Enterprises, Inc. 97,200 $ 2,077,650
UGI Corp. Holding Co. 77,810 1,847,987
-----------
17,975,423
-----------
FINANCE -- 5.0%
Astoria Financial Corp. 71,900 2,588,400
National Auto Credit, Inc.** 280,600 2,595,550
Peoples Heritage Financial Group 146,800 4,514,100
PFF Bancorp, Inc. 267,100 3,839,562
Webster Financial Corp. 115,800 4,067,475
-----------
17,605,087
-----------
FOOD & AGRICULTURE -- 1.1%
Suiza Foods Corp.** 145,700 3,897,475
-----------
GLASS -- 1.2%
Libbey, Inc. 130,100 4,065,625
-----------
INSURANCE -- 7.9%
#American Bankers Insurance
Group, Inc. 71,200 3,471,000
Commerce Group, Inc. 117,120 2,723,040
Enhance Financial Services
Group, Inc. 102,800 4,060,600
GCR Holdings, Ltd. 185,200 4,236,450
Harleysville Group, Inc. 134,000 4,355,000
Pxre Corp. 146,000 3,741,250
State Auto Financial Corp. 27,750 475,219
W.R. Berkley Corp. 93,300 4,758,300
-----------
27,820,859
-----------
JEWELRY -- 1.0%
Movado Group, Inc. 142,900 3,501,050
-----------
MACHINERY & HEAVY EQUIPMENT -- 7.4%
Alamo Group, Inc. 148,140 2,351,722
Brown & Sharpe Manufacturing Co.
Class A** 263,300 3,324,162
BW/IP Holdings Inc. 194,000 2,934,250
CMI Corp. Class A 376,700 1,648,062
Harmon Industries, Inc. 178,300 3,042,244
K2, Inc. 120,800 3,004,900
Pentair, Inc. 94,100 2,717,137
Plantronics, Inc.** 71,160 3,059,880
US Can Corp.** 259,600 3,958,900
-----------
26,041,257
-----------
MEDICAL & MEDICAL SERVICES -- 3.9%
Healthcare Realty Trust, Inc. 87,000 2,381,625
#Integrated Health Services, Inc. 157,000 4,592,250
Mariner Health Group, Inc.** 358,450 3,158,841
Sierra Health Services, Inc.** 136,900 3,473,837
-----------
13,606,553
-----------
MEDICAL INSTRUMENTS & SUPPLIES -- 1.8%
Beckman Instruments, Inc. 82,700 3,473,400
Marquette Medical Systems
Class A** 141,600 2,849,700
-----------
6,323,100
-----------
METAL & MINING -- 2.9%
Gibraltar Steel Corp.** 166,700 3,334,000
Mueller Industries, Inc.** 94,900 3,712,963
Wolverine Tube, Inc.** 122,900 3,195,400
-----------
10,242,363
-----------
See accompanying notes to financial statements.
22
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
SMALL CAP VALUE EQUITY PORTFOLIO (CONCLUDED)
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS (CONTINUED)
MOTOR VEHICLES -- 2.2%
A.O. Smith Corp. Class B 84,200 $ 2,936,475
Borge-Warner Automotive, Inc. 113,400 4,833,675
------------
7,770,150
------------
OIL & GAS -- 3.0%
Belco Oil & Gas Corp.** 209,800 3,802,625
Oneok, Inc. 73,900 1,921,400
#Pride Petroleum Services, Inc.** 49,038 1,017,539
Seacor Holdings, Inc.** 69,100 3,705,488
------------
10,447,052
------------
PAPER & FOREST PRODUCTS -- 2.0%
Caraustar Industries, Inc. 121,000 3,009,875
Chesapeake Corp. 143,900 3,957,250
------------
6,967,125
------------
REAL ESTATE -- 8.0%
Avalon Properties, Inc. 102,600 2,821,500
Beacon Properties Corp. 57,700 1,911,313
Boykin Lodging Trust, Inc. 90,200 1,973,125
Brandywine Realty Trust 85,400 1,729,350
Camden Property Trust 92,900 2,531,525
Capstone Capital Trust, Inc. 58,800 1,330,350
Chelsea GCA Realty, Inc. 55,900 2,005,413
Felcor Suite Hotels, Inc. 46,100 1,694,175
Highwoods Properties, Inc. 97,000 3,249,500
Meridian Industrial Trust, Inc. 44,000 1,017,500
#Patriot American Hospitality, Inc. 62,600 1,518,050
Prentiss Properties Trust 81,500 2,068,063
Shurgard Storage Centers, Inc. 77,900 2,151,988
Storage Trust Realty 83,400 2,147,550
------------
28,149,402
------------
RESTAURANTS -- 1.9%
Buffets, Inc.** 467,300 3,358,719
Ruby Tuesday, Inc.** 203,800 3,541,025
------------
6,899,744
------------
RETAIL MERCHANDISING -- 5.9%
Carson Pirie Scott & Co. ** 134,600 4,155,775
Fingerhut Co. 300,100 4,201,400
Freds, Inc., Class A 225,200 2,083,100
Stanhome, Inc. 158,100 3,932,738
Value City Department Stores,
Inc.** 295,200 2,435,400
Zale Corp.** 220,000 4,042,500
------------
20,850,913
------------
TEXTILES -- 1.6%
Cone Mills Corp.** 141,200 1,041,350
Crown Crafts, Inc. 160,940 1,850,810
Phillips-Van Heusen Corp. 237,200 2,816,750
------------
5,708,910
------------
TOBACCO -- 1.0%
Universal Corp. 117,900 3,404,363
------------
TRANSPORTATION -- 1.0%
Midwest Express Holdings, Inc.** 95,980 3,635,243
------------
TOTAL COMMON STOCKS
(Cost $300,542,125) 337,671,951
------------
Par
Maturity (000) Value
---------- ---------- ------------
SHORT TERM INVESTMENTS -- 5.5%
Federal Home Loan Bank
Discount Notes
6.25% 4/01/97 $17,800 $ 17,800,000
Smith Barney Money Market Fund 1,499 1,498,859
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $19,298,859) 19,298,859
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $319,840,984*) 101.6% 356,970,810
LIABILITIES IN EXCESS OF
OTHER ASSETS (1.6%) (5,500,676)
====== ============
NET ASSETS (Applicable to 15,726,583
Institutional shares, 5,921,644 Service
shares, 1,612,659 Investor A shares,
252,366 Investor B shares and 16,210
Investor C shares outstanding) 100.0% $351,470,134
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($234,943,716 (DIVIDE) 15,726,583) $14.94
=======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SERVICE SHARE
($88,474,961 (DIVIDE) 5,921,644) $14.94
=======
NET ASSET VALUE AND
REDEMPTION PRICE PER
INVESTOR A SHARE
($24,094,508 (DIVIDE) 1,612,659) $14.94
=======
MAXIMUM OFFERING PRICE
PER INVESTOR A SHARE
($14.94 (DIVIDE) .955) $15.64
=======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 4.5%)
PER INVESTOR B SHARE
($3,718,133 (DIVIDE) 252,366) $14.73
=======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 1.0%)
PER INVESTOR C SHARE
($238,816 (DIVIDE) 16,210) $14.73
=======
- ---------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
Gross unrealized appreciation $ 52,240,768
Gross unrealized depreciation (15,110,942)
------------
$ 37,129,826
============
** Non-income producing security.
# Total or partial securities on loan.
See accompanying notes to financial statements.
23
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
SMALL CAP GROWTH EQUITY PORTFOLIO
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS -- 75.1%
ADVERTISING -- 0.1%
The Leap Group, Inc.** 75,700 $ 321,725
------------
AIR TRANSPORTATION -- 0.3%
Expeditors International of
Washington, Inc.** 63,700 1,528,800
------------
BUSINESS SERVICES -- 7.4%
Accustaff, Inc.** 97,400 1,631,450
Apollo Group, Inc.** 169,525 4,153,362
#IMC Mortgage Co.** 292,000 4,307,000
Norrell Corp. 169,800 4,181,325
Ontrack Data International, Inc.** 170,800 2,562,000
Oxford Resources Corp.** 100,000 4,187,500
#Quintiles Transnational Corp.** 86,600 4,665,575
Robert Half International, Inc.** 163,600 5,705,550
Sitel Corp.** 318,700 4,262,612
------------
35,656,374
------------
COMPUTER & OFFICE EQUIPMENT -- 8.1%
#Baan Company NV** 57,800 2,579,325
CBT Group PLC** 149,300 7,446,337
Comverse Technology, Inc.** 262,300 10,360,850
#IMNT Systems, Inc.** 90,000 1,350,000
Natural Microsystems Corp.** 207,600 4,126,050
Network Appliance, Inc.** 156,300 5,079,750
Radiant Systems, Inc.** 82,900 746,100
Vantive Corp.** 96,000 1,968,000
Veritas Software Co.** 30,400 900,600
#Visio Corp.** 112,700 4,395,300
------------
38,952,312
------------
COMPUTER SOFTWARE & SERVICES -- 8.5%
Advanced Digital Information
Corp.** 161,000 2,052,750
Apex PC Solutions, Inc.** 90,600 770,100
Aspen Technology, Inc.** 217,000 5,913,250
BTG, Inc.** 131,800 2,306,500
Daou Systems, Inc.** 83,800 565,650
Electronics for Imaging, Inc.** 140,800 5,614,400
Infinity Financial Technology,
Inc.** 157,800 2,722,050
Information Management
Resources, Inc.** 14,000 220,500
Insight Enterprises, Inc.** 41,000 1,014,750
Iona Technologies PLC ADR** 75,000 1,350,000
JDA Software Group, Inc.** 156,000 3,178,500
Manugistics** 83,800 3,058,700
National Techteam, Inc.** 111,500 1,728,250
Pegasystems, Inc.** 87,600 1,762,950
#Scopus Technology, Inc.** 145,800 4,374,000
Smallworldwide PLC ADR** 118,700 1,928,875
Template Software, Inc.** 67,700 617,762
Xionics Document
Technologies, Inc.** 138,800 1,752,350
------------
40,931,337
------------
ELECTRONICS -- 7.6%
Cambridge Technology
Partners, Inc.** 201,600 4,662,000
CFM Technologies, Inc.** 21,700 642,862
#Cyrix Corp.** 100,000 1,900,000
#Jabil Circuit, Inc.** 156,000 7,029,750
Kent Electronics Corp.** 41,200 947,600
Qlogic Corp.** 120,100 2,371,975
Sawtek, Inc.** 141,200 4,059,500
Sipex Corp.** 151,100 4,419,675
Number
of Shares Value
--------- ------------
ELECTRONICS (CONTINUED)
Ultrak, Inc.** 159,100 $ 2,863,800
#Vitesse Semiconductor Inc.** 265,500 7,334,437
------------
36,231,599
------------
ENTERTAINMENT & LEISURE -- 2.6%
Capstar Hotel Co.** 34,100 954,800
Doubletree Corp.** 87,900 3,120,450
#Regal Cinemas, Inc.** 220,350 5,949,450
#Speedway Motorsports, Inc.** 100,000 2,375,000
The North Face, Inc.** 2,500 41,563
------------
12,441,263
------------
FINANCE -- 2.1%
#Aames Financial Corp. 112,500 2,278,125
Amresco, Inc.** 160,000 2,680,000
#Firstplus Financial Group, Inc.** 83,200 2,506,400
#The Money Store, Inc. 114,750 2,409,750
------------
9,874,275
------------
INSURANCE -- 0.6%
#HCC Insurance Holdings, Inc. 110,250 2,701,125
------------
MANUFACTURING -- 1.1%
Oakwood Homes Corp. 180,000 3,172,500
Southern Energy Homes, Inc.** 205,500 2,132,063
------------
5,304,563
------------
MEDICAL & MEDICAL SERVICES -- 5.3%
Clinitrials Research, Inc.** 104,100 884,850
CRA Managed Care, Inc.** 46,600 1,747,500
#FPA Medical Management, Inc.** 235,000 4,523,750
National Surgery Centers Inc.** 135,000 3,915,000
NCS Healthcare, Inc.** 56,600 1,280,575
#Occusystems, Inc.** 129,000 2,902,500
Pediatrix Medical Group, Inc.** 110,500 3,632,688
#Phycor, Inc.** 105,300 2,869,425
Premier Research Worldwide, Ltd.** 43,200 712,800
#Qiagen NV** 42,500 1,413,125
Serologicals Corp.** 107,550 1,613,250
------------
25,495,463
------------
MEDICAL INSTRUMENTS & SUPPLIES -- 2.8%
Biopsys Medical, Inc.** 119,000 2,945,250
Omnicare, Inc. 200,000 4,700,000
Sabratek Corp.** 93,000 1,860,000
#Safeskin Corp.** 123,000 2,229,375
Ventana Medical Systems, Inc.** 123,500 1,729,000
------------
13,463,625
------------
MOTOR VEHICLES -- 0.4%
Keystone Automotive
Industries, Inc.** 130,000 2,015,000
------------
OIL & GAS -- 4.7%
Core Laboratories NV** 83,200 1,476,800
Global Industries, Ltd.** 94,500 2,019,938
Marine Drilling Co., Inc.** 324,700 5,763,425
Patterson Energy, Inc.** 61,600 1,701,700
Petroleum Geo Services** 145,200 6,243,600
Reading & Bates Corp.** 100,000 2,262,500
Trico Marine Services, Inc.** 61,000 2,897,500
------------
22,365,463
------------
See accompanying notes to financial statements.
24
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
SMALL CAP GROWTH EQUITY PORTFOLIO (CONTINUED)
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS -- 6.2%
#Dura Pharmaceuticals, Inc.** 290,000 $ 10,367,500
#Jones Medical Industries, Inc. 275,500 6,612,000
#Medicis Pharmaceutical Corp.** 187,500 5,578,125
#Paraxel International Corp.** 209,000 4,807,000
#Rexall Sundown, Inc.** 94,000 2,408,750
------------
29,773,375
------------
REAL ESTATE -- 0.8%
Signature Resorts, Inc.** 75,000 1,762,500
Vistana, Inc.** 197,100 2,217,375
------------
3,979,875
------------
RESTAURANTS -- 2.8%
CKE Restaurants, Inc. 129,150 2,857,444
Einstein/Noah Bagel Corp.** 127,600 3,205,950
Landry's Seafood Restaurants,
Inc.** 187,000 2,968,625
Logan's Roadhouse, Inc.** 49,200 1,033,200
Papa John's International, Inc.** 117,675 3,103,678
------------
13,168,897
------------
RETAIL -- 1.0%
Pacific Sunwear of California** 138,600 4,539,150
------------
RETAIL MERCHANDISING -- 2.5%
Burlington Coat Factory
Warehouse Corp.** 18,100 325,800
Coldwater Creek, Inc.** 14,000 194,250
#Finish Line, Inc.** 200,000 4,450,000
Gadzooks, Inc.** 87,400 2,753,100
Maxim Group, Inc.** 113,000 1,497,250
Stein Mart, Inc.** 89,400 2,547,900
------------
11,768,300
------------
SANITARY SERVICES -- 4.2%
Superior Services, Inc.** 168,800 3,755,800
United Waste Systems, Inc.** 281,400 10,482,150
USA Waste Services, Inc.** 163,030 5,787,565
------------
20,025,515
------------
SECURITY BROKERS & DEALERS -- 0.3%
#E*TRADE Group, Inc.** 68,000 1,224,000
------------
SOCIAL SERVICES -- 0.5%
Ciber, Inc.** 96,100 2,426,525
------------
TELECOMMUNICATIONS -- 3.1%
Boston Technology, Inc.** 140,300 2,648,163
Saville Systems Ireland,
PLC ADR** 178,000 5,117,500
Tel-Save Holdings, Inc.** 500,000 7,250,000
------------
15,015,663
------------
TEXTILES -- 1.0%
Nautica Enterprises, Inc.** 64,100 1,610,513
St. John Knits, Inc. 75,000 3,243,750
------------
4,854,263
------------
TRANSPORTATION -- 1.1%
Eagle USA Airfreight, Inc.** 73,500 2,260,125
Rural/Metro Corp.** 103,900 3,168,950
------------
5,429,075
------------
TOTAL COMMON STOCKS
(Cost $323,682,421) 359,487,562
------------
Par
Maturity (000) Value
---------- ------- ------------
CORPORATE BONDS -- 0.5%
Speedway Motorsports, Inc.
5.75% 09/30/03 $ 2,300 $ 2,354,625
------------
(Cost $2,300,000)
SHORT TERM INVESTMENTS -- 26.5%
Federal Home Loan Bank
Discount Notes
6.25% 04/01/97 122,745 122,745,000
Smith Barney Money
Market Fund 2,696 2,697
U.S. Treasury Bills
5.14% 06/19/97 3,625*** 3,583,554
5.24% 06/19/97 750*** 741,258
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $127,073,137) 127,072,509
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $453,055,558*) 102.1% 488,914,696
LIABILITIES IN EXCESS OF
OTHER ASSETS (2.1%) (10,104,049)
------ ------------
NET ASSETS (Applicable to 18,386,739
Institutional shares, 8,344,007 Service
shares, 2,212,231 Investor A shares,
990,913 Investor B shares and 307,194
Investor C shares outstanding) 100.0% $478,810,647
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($292,275,442 (DIVIDE) 18,386,739) $15.90
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SERVICE SHARE
($131,732,852 (DIVIDE) 8,344,007) $15.79
======
NET ASSET VALUE AND
REDEMPTION PRICE PER
INVESTOR A SHARE
($34,685,666 (DIVIDE) 2,212,231) $15.68
======
MAXIMUM OFFERING PRICE
PER INVESTOR A SHARE
($15.68 (DIVIDE) .955) $16.42
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 4.5%)
PER INVESTOR B SHARE
($15,355,738 (DIVIDE) 990,913) $15.50
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 1.0%)
PER INVESTOR C SHARE
($4,760,949 (DIVIDE) 307,194) $15.50
======
See accompanying notes to financial statements.
25
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
SMALL CAP GROWTH EQUITY PORTFOLIO (CONCLUDED)
- --------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
appreciation (depreciation) on a tax basis is as follows:
Gross unrealized appreciation $ 66,182,662
Gross unrealized depreciation (30,323,524)
------------
$ 35,859,138
============
** Non-income producing security.
*** Principal amount of securities pledged as initial margin requirement of
$3,960,000 on 264 Standard & Poor's 500 Stock Index futures contracts
expiring June 1997. The value of such contracts on March 31, 1997 was
$100,056,000, thereby resulting in an unrealized loss of $7,411,975.
# Total or partial securities on loan.
See accompanying notes to financial statements.
26
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY PORTFOLIO
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- -----------
COMMON STOCKS -- 93.3%
AUSTRALIA -- 5.0%
AAPC Ltd. 4,300,000 $ 2,595,824
Australia & New Zealand
Banking Group 765,000 4,846,061
M.I.M. Holdings, Ltd. 3,500,000 4,692,240
National Mutual Holdings, Ltd. 2,500,000 3,802,400
News Corporation, Ltd. 935,000 4,361,588
QNI, Ltd. 2,890,058 5,505,907
WMC, Ltd. 790,000 4,992,042
------------
30,796,062
------------
AUSTRIA -- 0.6%
Voest Alpine Stahl AG 91,500 3,780,992
------------
DENMARK -- 0.8%
Den Danske Bank AB 56,000 5,048,538
------------
FINLAND -- 0.5%
UPM-Kymmene Corp. 122,780 2,691,250
------------
FRANCE -- 9.3%
Axa SA 67,500 4,475,955
Christian Dior SA 51,400 7,873,185
CLF-Dexia France 49,400 5,340,778
Michelin (C.G.D.E.) Class B 150,000 8,936,682
SGS-Thomson Microelectronics** 98,500 6,929,825
Sylea 38,168 3,670,980
Total SA 54,000 4,682,982
Usinor Sacilor 259,000 4,244,011
Veba AG 189,500 10,883,753
------------
57,038,151
------------
GERMANY -- 7.5%
Commerzbank AG 326,500 9,454,406
Daimler-Benz AG 168,000 13,556,835
Deutsche Bank AG 195,000 11,047,662
Deutsche Telekom AG 54,500 1,257,944
MAN AG 6,900 1,973,201
Mannesmann AG 22,500 8,599,370
------------
45,889,418
------------
HONG KONG -- 4.3%
CDL Hotels 6,453,000 3,185,402
Cheung Kong 510,000 4,492,044
Founder Hong Kong, Ltd.** 4,700,000 2,744,654
Hong Kong Electric Holdings, Ltd. 1,405,000 4,959,122
HSBC Holdings PLC 217,000 5,040,846
New World Development Co. 450,000 2,427,504
Oriental Press Group 2,900,000 1,160,195
Wheelock and Co. 1,000,000 2,187,464
------------
26,197,231
------------
ITALY -- 3.7%
Banca Popolare di Bergamo 282,000 4,304,633
Burgo Cartiere 465,000 2,423,662
Ente Nazionale Idrocarburi SpA 670,000 3,405,758
Olivetti & Co. SpA** 9,000,000 3,238,866
Stet-Societa' Finanziaria
Telefonica SpA 900,000 3,935,223
Telecom Italia Mobile SpA 1,950,000 5,614,035
------------
22,922,177
------------
Number
of Shares Value
---------- -----------
JAPAN -- 23.8%
Autobacs Seven Co., Ltd. 33,000 $ 1,974,610
Bridgestone Corp. 344,000 6,453,303
Chugoku Bank, Ltd. 207,000 2,627,881
Daiwa Securities Co. Ltd. 690,000 4,976,793
Fuji Photo Film Co. 176,000 5,792,189
Hitachi, Ltd. 601,000 5,345,678
Honda Motor Co., Ltd. 205,000 6,116,681
Horiba 172,000 1,571,602
Ito-Yokado Co., Ltd. 89,000 3,958,114
Laox 118,000 1,431,228
Mabuchi Motor 65,000 3,200,857
Matsushita Electric Industrial Co. 464,000 7,241,206
Minebea Co., Ltd. 476,000 3,964,421
Mitsubishi Electric Corp. 343,000 1,927,590
Mitsubishi Heavy Industries, Ltd. 814,000 5,298,536
Mitsui Fudosan 198,000 2,049,325
Mitsui Petrochemical 490,000 2,298,051
NKK Corp. 2,600,000 5,466,160
Noritsu Koki Co., Ltd. 3,600 155,737
Orix Corp. 66,500 2,930,581
Ricoh Co. 512,000 5,837,471
Rinnai Corp. 130,000 2,218,000
Ryohin Keikaku Co. 46,000 2,994,259
Sankyo Co. 45,000 953,344
Sanwa 510,000 5,484,758
Sanyo Shinpan Finance Co. 65,670 3,313,502
Sekisui Chemical Co. 515,000 5,080,456
Shin-Etsu Chemical Co. 255,000 4,845,557
Shiseido Co., Ltd. 634,000 8,202,474
Sumitomo Marine & Fire
Insurance Co. 908,000 5,506,590
Sumitomo Trust & Banking 479,000 3,834,479
Suzuki Motor Co., Ltd. 524,000 5,084,499
Takeda Chemical Industries 290,000 6,073,421
Tokyo Electron, Ltd. 159,500 5,287,863
Tsubaki Nakashima Co., Ltd. 250,000 1,950,756
Tsukishima Kikai 143,000 2,162,287
Yamanashi Chuo Bank 388,000 2,826,781
------------
146,437,040
------------
NETHERLANDS -- 5.5%
DSM NV 78,100 7,887,038
Hollandsche Beton Groep NV 27,500 6,275,660
Internationale Nederlanden
Groep NV 203,097 8,002,596
Philips Electronics NV 135,000 6,298,320
Vendex International NV 115,000 5,444,948
------------
33,908,562
------------
NORWAY -- 1.0%
Norsk Hydro AS 124,524 6,196,999
------------
SINGAPORE -- 3.7%
DBS Land Ltd. 1,470,000 5,027,207
Development Bank of Singapore 445,000 5,175,493
Jardine Matheson Holdings 461,000 2,673,800
Singapore Press Holdings, Ltd. 207,000 3,768,847
United Overseas Bank 610,000 6,249,913
------------
22,895,260
------------
SPAIN -- 1.9%
Iberdrola SA 301,572 3,330,046
Repsol SA 7,000 292,338
Repsol SA ADR 90,000 3,678,750
Telefonica de Espana ADR 60,000 4,312,500
------------
11,613,634
------------
See accompanying notes to financial statements.
27
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY PORTFOLIO (CONCLUDED)
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- -----------
COMMON STOCKS (CONTINUED)
SWEDEN -- 2.5%
Banco de Santander SA 96,000 $ 6,625,376
Cardo AB 124,000 4,010,147
Sparbanken Sverige AB 240,000 4,462,507
------------
15,098,030
------------
SWITZERLAND -- 6.3%
Baloise Holding, Ltd. 2,093 4,275,584
Ciba Specialty Chemicals AG** 8,693 718,779
CS Holding 77,200 9,266,467
Novartis, Ltd. 8,693 10,787,728
Roche Holding AG 1,285 11,111,607
Valora Holding AG Regd. 12,880 2,819,066
------------
38,979,231
------------
UNITED KINGDOM -- 16.9%
Allied Carpets Group PLC** 670,000 3,119,084
Asda Group PLC 1,910,000 3,448,290
Avis Europe PLC 950,000 2,070,644
BBA Group PLC 575,000 3,419,338
Blue Circle Industries PLC 450,000 3,079,440
British Petroleum 540,000 6,275,839
British Telecommunications PLC 635,000 4,653,582
Burton Group PLC 1,610,000 4,144,824
Courtaulds PLC 500,000 2,969,225
Glaxo Wellcome PLC 375,000 6,887,409
Glynwed International 600,000 2,847,495
Guardian Royal Exchange 900,000 4,160,205
Jarvis Hotels PLC 1,100,000 3,184,720
Land Securities PLC 310,000 3,944,463
Limelight Group PLC** 1,100,000 1,402,362
London Insurance Market
Investment Trust 540,000 1,154,790
Medeva PLC 775,000 3,920,241
National Westminster Bank PLC 350,000 3,952,524
NFC PLC 1,450,000 3,947,589
Powerscreen International 124,720 1,260,735
RJB Mining PLC 430,000 2,564,144
Royal Bank of Scotland PLC 360,000 3,180,114
Rubicon Group PLC 1,065,000 2,251,224
Scottish & Newcastle PLC 350,000 3,894,949
Senior Engineering PLC 1,700,000 3,285,888
Shell Transport & Trading Co. PLC 350,000 6,249,766
Somerfield PLC 950,000 2,781,695
Sun Life & Provincial Holdings** 675,000 3,275,606
Wolseley PLC 450,000 3,638,329
Yorkshire Water PLC 459,000 2,623,816
Yorkshire Water PLC Class B** 510,000 306,217
------------
103,894,547
------------
TOTAL COMMON STOCKS
(Cost $531,388,701) 573,387,122
------------
Number
of Shares Value
---------- -----------
PREFERRED STOCKS -- 2.0%
GEA AG Non Voting Pfd. 22,900 $ 8,717,926
Spar Handels AG Non
Voting Pfd. 268,440 3,878,540
------------
TOTAL PREFERRED STOCKS
(Cost $9,993,961) 12,596,466
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $541,382,662*) 95.3% 585,983,588
OTHER ASSETS IN EXCESS OF
LIABILITIES
4.7% 28,864,144
------ ------------
NET ASSETS 100.0% $614,847,732
====== ============
- -------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
appreciation (depreciation) on a tax basis is as follows:
Gross unrealized appreciation $ 76,398,524
Gross unrealized depreciation (31,797,598)
------------
$ 44,600,926
============
** Non-income producing security.
See accompanying notes to financial statements.
28
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF ASSETS AND LIABILITIES
INTERNATIONAL EQUITY PORTFOLIO
MARCH 31, 1997
ASSETS
Investments at value (Cost $541,382,662) ................... $585,983,588
Cash denominated in foreign currencies (Cost $4,880) ....... 5,104
Cash ....................................................... 23,017,750
Dividends receivable ....................................... 1,590,548
Interest receivable ........................................ 286,269
Investments sold receivable ................................ 9,708,839
Capital shares sold receivable ............................. 54,702
Prepaid expenses ........................................... 25,437
------------
TOTAL ASSETS ........................................ 620,672,237
------------
LIABILITIES
Investments purchased payable .............................. 4,973,925
Capital shares redeemed payable ............................ 12,791
Accrued expenses payable ................................... 837,789
------------
TOTAL LIABILITIES ................................... 5,824,505
------------
NET ASSETS (Applicable to 31,921,948 Institutional
shares, 13,245,437 Service shares, 1,564,808
Investor A shares, 282,797 Investor B shares
and 209 Investor C shares outstanding) ..................... $614,847,732
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($418,000,285 (DIVIDE) 31,921,948) ......................... $13.09
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SERVICE SHARE
($172,773,087 (DIVIDE) 13,245,437) ......................... $13.04
======
NET ASSET VALUE AND REDEMPTION PRICE
PER INVESTOR A SHARE
($20,416,758 (DIVIDE) 1,564,808) ........................... $13.05
======
MAXIMUM OFFERING PRICE PER INVESTOR A SHARE
($13.05 (DIVIDE) 0.950) .................................... $13.74
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
(subject to a maximum contingent
deferred sales charge of 4.5%)
PER INVESTOR B SHARE
($3,654,902 (DIVIDE) 282,797) .............................. $12.92
======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
(subject to a maximum contingent
deferred sales charge of 1.0%)
PER INVESTOR C SHARE ($2,700 (DIVIDE) 209) ................. $12.92
======
See accompanying notes to financial statements.
29
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
INTERNATIONAL EMERGING MARKETS PORTFOLIO
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- -----------
COMMON STOCKS -- 84.1%
ARGENTINA -- 1.8%
Inversiones y Respresentacion SA 250,000 $ 937,641
Siderar S.A.I.C. - A** 14,000 48,867
Siderca SA - A 350,000 738,611
YPF Sociedad Anonima - ADR 45,000 1,192,500
------------
2,917,619
------------
BRAZIL -- 5.4%
Centrais Electricas de Santa
Catarina SA (Reg. S) 27,000 3,300,750
#Iochpe Maxion SA - ADR 130,000 283,530
Multicanal Participacoes SA 80,000 1,110,000
Telecomunicacoes Brasileiras
SA - Telebras 37,798,367 3,805,315
------------
8,499,595
------------
CHILE -- 5.1%
#Chilgener SA - ADR 56,000 1,442,000
Cristalerias de Chile SA - ADR 88,500 1,869,562
Enersis SA - ADR 27,500 873,125
Maderas y Sinteticos Sociedad
Anonima SA - ADR 125,000 1,976,562
#Santa Isabel SA - ADR 72,000 1,863,000
------------
8,024,249
------------
CHINA -- 1.3%
Heilongjiang Electric Power Co.,
Ltd. - B** 1,250,000 937,500
Inner Mongolia Erdos Cashmere
Products Co., Ltd. - B 750,000 562,500
Shanghai Refrigerator
Compressor Co., Ltd. - B 1,000,000 600,000
------------
2,100,000
------------
COLOMBIA -- 0.5%
Banco Industrial Colombian - ADR 45,000 742,500
------------
EGYPT -- 0.6%
Suez Cement Co. - GDR** 45,000 911,250
------------
GREECE -- 1.4%
Alpha Credit Bank 18,332 1,345,943
Alpha Credit Bank Rights** 3,666 104,589
Edrassi Psallidas 31,200 276,763
Michaniki SA 50,000 524,687
------------
2,251,982
------------
HONG KONG -- 3.6%
Founder Hong Kong, Ltd**. 2,418,000 1,412,037
Guangdong Kelon Electric
Holding - H 1,251,000 1,122,053
Qingling Automobiles Co. - H 1,050,000 558,965
Shenzhen Chiwan Wharf
Holdings, Ltd. - B 800,000 619,459
Wuxi Little Swan Co., Ltd. - B** 700,000 1,025,333
YGM Trading, Ltd. 900,000 1,016,300
------------
5,754,147
------------
HUNGARY -- 1.4%
Danubius Hotels** 26,950 813,434
Egis Gyogyszergyar EDR
(Reg. S) 4,400 249,198
Pannonplast Muanyagipari 27,008 1,199,706
------------
2,262,338
------------
Number
of Shares Value
--------- ----------
INDIA -- 6.3%
Gujarat Ambuja Cements,
Ltd. - GDR 100,000 $ 908,500
Hindalco Industries, Ltd. - GDR
(Reg. S) 64,500 2,100,443
Industrial Credit & Investment Corp.
of India, Ltd.** 75,000 804,375
#Mahindra and Mahindra, Ltd. - GDR
(Reg. 144a) 52,500 613,594
Reliance Industries, Ltd. - GDS
(Reg. S) 72,000 1,296,000
State Bank of India, Ltd. GDR
(Reg. S)** 88,000 1,984,400
Tata Engineering & Locomotive Co.,
Ltd. - GDR (Reg. S) 130,000 1,654,250
Tata Engineering & Locomotive Co.,
Ltd. - GDR (Reg. S) 13,000 163,150
Videsh Sanchar Nigam, Ltd. - GDR** 34,000 473,620
------------
9,998,332
------------
INDONESIA -- 5.3%
PT Alumindo Perkasa
(Foreign Shares) 1,800,000 805,914
PT Bank Dagang Nasional
(Foreign Shares) 2,275,000 2,274,052
PT Bank Dagang Nasional
Warrants** 325,000 108,288
PT Ciputra Development
(Foreign Shares) 1,050,000 940,233
PT Indah Kiat Pulp & Paper
(Foreign Shares) 1,750,987 1,294,461
PT Ramayana Lestari Sentosa
(Foreign Shares)** 580,000 1,352,770
PT Semen Cibinong
(Foreign Shares) 200,000 603,915
PT Tambang Timah
(Foreign Shares) 625,000 976,156
------------
8,355,789
------------
ISRAEL -- 1.8%
Blue Square - Israel, Ltd. ADR** 100,000 1,775,000
Blue Square Chain Stores
Properties & Investments** 60,000 577,054
Makhteshim Chemical
Works, Ltd.** 92,322 523,824
------------
2,875,878
------------
KOREA -- 2.8%
Hyundai Marine & Fire
Insurance Co. 13,000 436,963
Korea Electric Power Corp. 39,000 1,132,328
Korea Mobile
Telecommunications - GDS 46,350 475,088
L.G. Construction, Ltd. 60,000 871,022
Pohang Iron & Steel Co. 4,150 199,738
#Pohang Iron & Steel Co. - ADR 20,000 475,000
Samchully Co. (Foreign Shares) 12,000 858,961
------------
4,449,100
------------
MALAYSIA -- 6.7%
Arab Malaysian Finance Berhad
(Foreign Shares) 250,000 756,567
Asas Dunia Berhad 210,000 817,698
Edaran Otomobil Nasional
Berhad** 100,000 1,008,756
Hong Leong Properties Berhad 840,000 1,328,653
See accompanying notes to financial statements.
30
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
INTERNATIONAL EMERGING MARKETS PORTFOLIO (CONTINUED)
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS (CONTINUED)
MALAYSIA (CONTINUED)
IJM Corp. Berhad 575,000 $ 1,415,285
Malaysian International
Shipping Corp. Berhad 1,000 2,482
Multi-Purpose Holdings Berhad 680,000 1,426,784
Renong Holding Co. Berhad 540,000 915,143
Telekom Malaysia Berhad 190,000 1,479,643
Tenaga Nasional Berhad 310,000 1,513,538
------------
10,664,549
------------
MEXICO -- 6.2%
Altos Hornos de Mexico SA** 575,000 1,234,529
#Apasco SA - ADR 60,000 2,027,460
Cementos de Mexico SA - CPO 520,000 1,904,521
Consorcio G Grupo Dina SA** 213,000 138,270
Corporacion Geo SA - B** 199,400 956,959
Farmacias Benavides SA - B 80,000 156,605
Fomento Economico Mexicano
SA - B 170,000 752,526
Grupo Cementos Chihuahua - B 1,300,000 1,290,477
Grupo Financiero Banorte - B** 402,500 417,852
Grupo Herdez SA - B 699,000 259,543
Grupo Industrial San Luis - CPO 110,000 659,889
------------
9,798,631
------------
PAKISTAN -- 0.4%
Engro Chemical Pakistan, Ltd. 120,000 553,894
------------
PERU -- 1.8%
Banco Wiese - ADR 60,000 375,000
CPT Telefonica del Peru SA - ADR 100,000 2,225,000
Luz del Sur SA - ADR 12,600 229,950
------------
2,829,950
------------
PHILIPPINES -- 3.9%
Benpres Holdings Corp. - GDR
(Reg. S)** 150,000 1,132,500
Manila Electric Co. 180,000 1,433,719
Metro Pacific Corp. 4,000,000 1,213,730
Philippine National Bank** 125,000 1,493,457
Southeast Asia Cement Holding** 9,500,000 871,989
------------
6,145,395
------------
POLAND -- 0.5%
Debica 30,000 795,251
------------
PORTUGAL -- 1.7%
Cimentos de Portugal SA 20,000 418,430
Inparsa Industrias E Participacoes** 15,000 58,294
Portugal Telecom SA 30,000 1,116,707
Sonae Investimentos Sociedade
Gestora de Participacoes
Sociais SA 30,000 1,012,994
------------
2,606,425
------------
RUSSIA -- 0.8%
Gazprom - ADS** 75,000 1,254,375
------------
SOUTH AFRICA -- 17.6%
AECI Ltd. 415,000 2,394,502
Anglovaal Industries, Ltd. 363,400 1,603,417
Anglovaal, Ltd. - N 20,000 608,666
Barlow, Ltd. 180,000 1,997,737
Engen, Ltd. 28,538 154,329
Gencor Beherend Beperk, Ltd. 380,000 1,719,652
Impala Platinum Holdings, Ltd. 110,000 1,312,931
Number
of Shares Value
--------- ------------
SOUTH AFRICA (CONTINUED)
Meikles Africa, Ltd. 2,425,700 $ 5,360,797
Murray & Roberts, Ltd. 880,000 2,130,558
Premier Group Holdings, Ltd. 1,150,029 1,707,023
Pretoria Portland Cement Co., Ltd. 129,493 2,212,178
Rustenburg Platinum Holdings, Ltd. 511 8,267
SA Iron & Steel Industrial
Corp., Ltd. 2,609,250 2,125,421
Sasol, Ltd. 175,000 1,870,970
Tongaat-Hulett Group, Ltd. 171,620 2,718,271
------------
27,924,719
------------
TAIWAN -- 3.2%
Accton Technology Corp. - GDR 250,000 2,000,000
Acer, Inc. - GDR (Reg. 144A)** 70,000 885,500
Acer, Inc. - GDR (Reg. S)** 72,000 910,800
Taiwan Fund, Inc. 33,900 834,788
Yageo Corp. - GDR** 40,000 485,000
------------
5,116,088
------------
THAILAND -- 2.3%
Bangkok Insurance Co., Ltd.
(Foreign Shares) 30,000 375,650
Siam Commercial Bank Public Co.,
Ltd. (Foreign Shares) 200,000 1,171,258
Telecomasia Corp. Public
Co., Ltd. 500,000 852,437
Thai Stanley Electric Co., Ltd.
(Foreign Shares) 112,500 266,567
United Communication Industry
Public Co., Ltd. (Foreign Shares) 160,000 1,035,639
------------
3,701,551
------------
TURKEY -- 1.7%
Eczacibasi Yapi Gerecleri
Sanayi Ve Ticaret A.S.** 30,630,000 1,223,712
Netas Telekomunik 1,000,000 285,927
Raks Elektronik Sanayi Ve
Ticaret A.S.** 1,000,000 289,844
Yapi Ve Kredi Bankasi A.S. 18,600,000 830,520
------------
2,630,003
------------
TOTAL COMMON STOCKS
(Cost $117,203,647) 133,163,610
------------
PREFERRED STOCKS -- 10.0%
Banco Bradesco SA 122,104,380 1,007,224
Brasmotor SA 4,500,000 1,284,987
Casa Anglo Brasileira - SA** 39,000,000 1,558,529
Cia Brasileira de Distribuicao
Grupo Pao de Acucar 25,000,000 538,534
Cia Cimento Portland Itau 3,200,000 1,144,096
Cia Energetica de Minas Gerais 39,000,000 1,603,017
Cia Paranaense de
Energia-Copel 136,080,000 1,924,299
Eletropaulo-Eletricidade de
Sao Paula SA 7,000,000 1,339,618
Iochpe Maxion SA** 8,970,000 731,468
Petroleo Brasileiro SA 15,000,000 2,976,667
Sadia-Concordia SA Industria
E Comercio 1,327,000 975,781
Telecomunicacoes Brasileiras
SA - Telebras 695,282 71,839
Usiminas Sider Minas Gerais SA 600,000,000 673,109
------------
TOTAL PREFERRED STOCKS
(Cost $13,913,956) 15,829,168
------------
See accompanying notes to financial statements.
31
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
INTERNATIONAL EMERGING MARKETS PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
---------- ------- -----------
COMMON STOCKS (CONTINUED)
CONVERTIBLE BONDS -- 1.8%
Far East Department Stores
3.00% 07/06/01 $1,000 $ 1,047,300
Yang Ming Marine Transport,
Inc. (Reg. 144A)
2.00% 10/06/99 790 912,450
Yang Ming Marine Transport, Inc.
2.00% 10/06/99 750 870,000
------------
TOTAL CONVERTIBLE BONDS
(Cost $2,806,465) 2,829,750
------------
SHORT TERM INVESTMENTS -- 3.6%
Federal Home Loan Bank Discount Notes
5.75% 04/01/97 4,375 4,375,000
6.25% 04/01/97 1,270 1,270,000
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $5,645,000) 5,645,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $139,569,068*) 99.5% 157,467,528
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.5% 867,726
------ ------------
NET ASSETS (Applicable to 10,187,468
Institutional shares, 5,493,025 Service
shares, 384,903 Investor A shares,
68,775 Investor B shares, and 2,266
Investor C shares outstanding 100.0% $158,335,254
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($100,131,045 (DIVIDE) 10,187,468) $ 9.83
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SERVICE SHARE
($53,755,958 (DIVIDE) 5,493,025) $ 9.79
======
NET ASSET VALUE AND
REDEMPTION PRICE PER
INVESTOR A SHARE
($3,758,656 (DIVIDE) 384,903) $ 9.77
======
MAXIMUM OFFERING PRICE
PER INVESTOR A SHARE
($9.77 (DIVIDE) .950) $10.28
======
Value
----------
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 4.5%)
PER INVESTOR B SHARE
($667,593 (DIVIDE) 68,775) $ 9.71
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 1.0%)
PER INVESTOR C SHARE
($22,002 (DIVIDE) 2,266) $ 9.71
======
- ------------
* Also cost for Federal income tax purposes. The gross unrealized
appreciation (depreciation) on a tax basis is as follows:
Gross unrealized appreciation $25,976,516
Gross unrealized depreciation (8,078,056)
------------
$17,898,460
============
** Non-income producing security.
# Total or partial securities on loan.
See accompanying notes to financial statements.
32
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
SELECT EQUITY PORTFOLIO
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS -- 98.7%
AEROSPACE -- 2.0%
Boeing Co. 35,200 $ 3,471,600
Lockheed Martin Corp. 39,100 3,284,400
United Technologies Corp. 32,900 2,475,725
------------
9,231,725
------------
AIR TRANSPORTATION -- 0.4%
Delta Air Lines, Inc. 22,500 1,892,812
------------
BANKS -- 6.5%
#Banc One Corp. 118,000 4,690,500
BankAmerica Corp. 54,500 5,490,875
Chase Manhattan Corp. 78,436 7,343,570
Citicorp 12,800 1,385,600
CoreStates Financial Corp. 99,400 4,721,500
First Chicago NBD, Corp. 82,900 4,486,962
#First Union Corp. 33,100 2,685,237
------------
30,804,244
------------
BEVERAGES -- 4.1%
Anheuser Busch Cos., Inc. 72,700 3,062,487
Coca-Cola Co. 179,200 10,012,800
Pepsico, Inc. 192,100 6,267,262
------------
19,342,549
------------
CHEMICALS -- 3.3%
Air Products & Chemicals, Inc. 36,600 2,484,225
Dow Chemical Co. 37,700 3,016,000
E.I. Du Pont de Nemours and Co. 45,735 4,847,910
#PPG Industries, Inc. 65,200 3,520,800
Rohm & Haas Co. 23,800 1,782,025
------------
15,650,960
------------
COMPUTER & OFFICE EQUIPMENT -- 6.8%
Adaptec, Inc.** 56,700 2,027,025
#Cabletron Systems, Inc.** 48,100 1,406,925
Cisco Systems, Inc.** 51,900 2,497,687
#Compaq Computer Corp.** 63,400 4,858,025
Intel Corp. 75,100 10,448,287
International Business Machines Corp. 44,900 6,168,137
Xerox Corp. 82,700 4,703,562
------------
32,109,648
------------
COMPUTER SOFTWARE & SERVICES -- 2.0%
#Microsoft Corp.** 102,900 9,434,644
------------
CONSTRUCTION -- 0.4%
#Fluor Corp. 37,500 1,968,750
------------
ELECTRONICS -- 5.6%
A.M.P., Inc. 50,700 1,742,812
Emerson Electric Co. 79,400 3,573,000
General Electric Co. 104,000 10,322,000
Hewlett Packard Co. 73,600 3,919,200
Motorola, Inc. 53,200 3,211,950
Texas Instruments, Inc. 51,400 3,848,575
------------
26,617,537
------------
ENERGY & UTILITIES -- 3.3%
Allegheny Power System, Inc. 39,800 1,179,075
Cinergy Corp. 84,300 2,876,737
Entergy Corp. 143,500 3,515,750
FPL Group, Inc. 65,300 2,881,362
NIPSCO Industries, Inc. 55,600 2,182,300
PECO Energy Co. 44,700 910,762
Southern Co. 105,500 2,228,687
------------
15,774,673
------------
Number
of Shares Value
--------- ------------
ENTERTAINMENT & LEISURE -- 1.6%
Harrah's Entertainment, Inc.** 107,500 $ 1,840,937
La Quinta Inns, Inc. 86,500 1,773,250
Walt Disney Co. 56,800 4,146,400
------------
7,760,587
------------
FINANCE -- 4.1%
Dean Witter Discover and Co. 143,500 5,004,563
Fannie Mae 129,600 4,681,800
First USA, Inc. 84,800 3,593,400
#Fleet Financial Group, Inc. 103,200 5,908,200
------------
19,187,963
------------
FOOD & AGRICULTURE -- 3.7%
Archer Daniels Midland Co. 132,800 2,373,800
Burlington Northern Santa Fe
Corp. 32,300 2,390,200
CPC International, Inc. 64,200 5,264,400
CSX Corp. 54,200 2,520,300
IMC Fertilizer Group, Inc. 94,200 3,402,975
McCormick & Co., Inc. 66,300 1,624,350
------------
17,576,025
------------
INSURANCE -- 6.1%
Aetna, Inc. 41,228 3,540,455
Allstate Corp. 95,200 5,652,500
American International Group, Inc. 59,600 6,995,550
Cigna Corp. 16,400 2,396,450
General Re Corp. 25,400 4,013,200
Humana, Inc.** 124,100 2,730,200
United Healthcare Corp. 77,200 3,676,650
------------
29,005,005
------------
MACHINERY & HEAVY EQUIPMENT -- 1.4%
Applied Materials, Inc.** 57,100 2,648,013
Illinois Tool Works, Inc. 46,400 3,787,400
------------
6,435,413
------------
MEDICAL & MEDICAL SERVICES -- 0.4%
Columbia Healthcare Corp. 54,550 1,834,244
------------
METAL & MINING -- 2.4%
Alumax, Inc.** 32,600 1,128,775
#Barrick Gold Corp. 84,100 1,997,375
Minnesota Mining &
Manufacturing Co. 41,700 3,523,650
Phelps Dodge Corp. 60,900 4,453,313
------------
11,103,113
------------
MOTOR VEHICLES -- 4.1%
#Cummins Engine, Inc. 46,300 2,372,875
#Eaton Corp. 59,600 4,224,150
Ford Motor Co. 148,000 4,643,500
General Motors Corp. 91,800 5,083,425
Goodyear Tire & Rubber Co. 59,700 3,119,325
------------
19,443,275
------------
OIL & GAS -- 9.4%
Atlantic Richfield Co. 28,600 3,861,000
#Elf Aquitaine ADR 49,100 2,418,175
Enron Corp. 66,900 2,542,200
Exxon Corp. 137,400 14,804,850
Mobil Corp. 47,100 6,152,438
Noble Affiliates, Inc. 35,400 1,336,350
See accompanying notes to financial statements.
33
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
SELECT EQUITY PORTFOLIO (CONCLUDED)
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS (CONTINUED)
OIL & GAS (CONTINUED)
#Royal Dutch Petroleum Co. 54,000 $ 9,450,000
Schlumberger Ltd. 27,700 2,970,825
Tenneco, Inc. 25,600 998,400
------------
44,534,238
------------
PAPER & FOREST PRODUCTS -- 1.5%
International Paper Co. 104,300 4,054,663
Mead Corp. 60,400 3,201,200
------------
7,255,863
------------
PHARMACEUTICALS -- 7.8%
American Home Products Corp. 98,100 5,886,000
Bristol-Meyers Squibb Co. 86,800 5,121,200
Eli Lilly & Co. 46,500 3,824,625
Johnson & Johnson 107,700 5,694,638
Merck & Co., Inc. 104,400 8,795,700
Pfizer, Inc. 54,600 4,593,225
#Pharmacia & Upjohn, Inc. 85,500 3,131,438
------------
37,046,826
------------
PUBLISHING & PRINTING -- 1.7%
A.H. Belo Corp. 62,900 2,327,300
McGraw-Hill Companies, Inc. 59,000 3,016,375
Tribune Co. 66,200 2,681,100
------------
8,024,775
------------
RESTAURANTS -- 1.6%
Brinker International, Inc.** 125,500 1,584,438
McDonald's Corp. 124,500 5,882,625
------------
7,467,063
------------
RETAIL MERCHANDISING -- 5.4%
Circuit City Stores, Inc. 72,700 2,426,363
Home Depot, Inc. 41,000 2,193,500
J.C. Penney Co., Inc. 112,900 5,376,863
Kroger Co.** 64,800 3,288,600
Limited, Inc. 126,500 2,324,438
Toys "R" Us, Inc.** 104,900 2,937,200
#Wal-Mart Stores, Inc. 249,400 6,952,025
------------
25,498,989
------------
SOAPS & COSMETICS -- 2.6%
Colgate-Palmolive Co. 50,600 5,041,025
Procter & Gamble Co. 64,800 7,452,000
------------
12,493,025
------------
TELECOMMUNICATIONS -- 8.0%
Alltel Corp. 134,200 4,361,500
#AT&T Corp. 175,600 6,102,100
#Bell Atlantic Corp. 67,700 4,121,238
Frontier Corp. 130,800 2,338,050
GTE Corp. 125,200 5,837,450
Lucent Technologies, Inc. 51,294 2,705,759
Oracle Corp.** 121,050 4,667,991
#SBC Communications, Inc. 142,200 7,483,275
------------
37,617,363
------------
TEXTILES -- 0.5%
#Warnaco Group 88,100 2,620,975
------------
TOBACCO -- 2.0%
Philip Morris Cos., Inc. 82,800 9,449,550
------------
TOTAL COMMON STOCKS
(Cost $390,964,531) 467,181,834
------------
Par
Maturity (000) Value
---------- -------- ------------
SHORT TERM INVESTMENTS -- 1.7%
Federal Home Loan Bank Discount Notes
6.25% 04/01/97 $7,100 $ 7,100,000
U.S. Treasury Bills
5.14% 06/19/97 500*** 494,239
Smith Barney Money Market Fund 369 369,360
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $7,963,715) 7,963,599
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $398,928,246*) 100.4% 475,145,433
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.4%) (2,049,091)
------ ------------
NET ASSETS (Applicable to 23,455,217
Institutional shares, 9,613,066 Service
shares, 715,669 Investor A shares,
338,013 Investor B shares and
445 Investor C shares outstanding) 100.0% $473,096,342
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($325,257,650 (DIVIDE) 23,455,217) $13.87
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SERVICE SHARE
($133,240,765 (DIVIDE) 9,613,066) $13.86
======
NET ASSET VALUE AND
REDEMPTION PRICE PER
INVESTOR A SHARE
($9,924,132 (DIVIDE) 715,669) $13.87
======
MAXIMUM OFFERING PRICE
PER INVESTOR A SHARE
($13.87 (DIVIDE) .955) $14.52
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 4.5%)
PER INVESTOR B SHARE
($4,667,648 (DIVIDE) 338,013) $13.81
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 1.0%)
PER INVESTOR C SHARE
($6,147 (DIVIDE) 445) $13.81
======
- --------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
Gross unrealized appreciation $84,196,022
Gross unrealized depreciation (7,978,835)
-----------
$76,217,187
===========
** Non-income producing security.
*** Principal amount of securities pledged as initial margin requirement of
$150,000 on 10 Standard & Poor's 500 Stock Index futures contracts expiring
June 1997. The value of such contracts on March 31, 1997 was $3,790,000,
thereby resulting in an unrealized loss of $253,003.
# Total or partial securities on loan.
See accompanying notes to financial statements.
34
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
INDEX EQUITY PORTFOLIO
AS OF MARCH 31, 1997 (UNAUDITED) Value
------------
Investment in The U.S. Large Company
Series of The DFA Investment
Trust Company
(Cost $286,523,813) 99.9% $321,873,460
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 381,033
------------
NET ASSETS (Applicable to 9,925,424
Institutional shares, 9,302,592 Service
shares, 1,211,572 Investor A shares,
1,000,419 Investor B shares and
576,954 Investor C shares
outstanding) 100.0% $322,254,493
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($145,315,525 (DIVIDE) 9,925,424) $14.64
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SERVICE SHARE
($136,204,126 (DIVIDE) 9,302,592) $14.64
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER INVESTOR A SHARE
($17,740,040 (DIVIDE) 1,211,572) $14.64
======
MAXIMUM OFFERING PRICE
PER INVESTOR A SHARE
($14.64 (DIVIDE) .970) $15.09
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 4.5%)
PER INVESTOR B SHARE
($14,583,996 (DIVIDE) 1,000,419) $14.58
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 1.0%)
PER INVESTOR C SHARE
($8,410,806 (DIVIDE) 576,954) $14.58
======
See accompanying notes to financial statements and accompanying
financial statements and related notes for The DFA Investment Trust Company.
35
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
BALANCED PORTFOLIO
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS -- 63.2%
AEROSPACE -- 2.5%
Allied-Signal, Inc. 33,200 $ 2,365,500
Boeing Co. 9,200 907,350
United Technologies Corp. 45,700 3,438,925
------------
6,711,775
------------
BANKS -- 3.2%
#Banc One Corp. 73,400 2,917,650
CoreStates Financial Corp. 51,500 2,446,250
First Chicago NBD Corp. 57,200 3,095,950
------------
8,459,850
------------
BEVERAGES -- 1.3%
Coca-Cola Co. 45,800 2,559,075
Pepsico, Inc. 28,600 933,075
------------
3,492,150
------------
CHEMICALS -- 2.8%
Dow Chemical Co. 22,900 1,832,000
E.I. du Pont de Nemours and Co. 29,700 3,148,200
IMC Fertilizer Group, Inc. 40,000 1,445,000
Lubrizol Corp. 34,300 1,114,750
------------
7,539,950
------------
COMPUTER & OFFICE EQUIPMENT -- 4.1%
3 Com Corp. 34,300 1,123,325
Cisco Systems, Inc. 31,400 1,511,125
Compaq Computer Corp. 32,000 2,452,000
Intel Corp. 28,600 3,978,975
Xerox Corp. 30,900 1,757,437
------------
10,822,862
------------
COMPUTER SOFTWARE & SERVICES -- 2.7%
First Data Corp. 64,000 2,168,000
International Business Machines Corp. 8,000 1,099,000
Microsoft Corp. 43,500 3,988,406
------------
7,255,406
------------
CONSTRUCTION -- 0.5%
#Fluor Corp. 26,300 1,380,750
------------
CONSUMER DURABLES -- 0.8%
Black & Decker Corp. 68,600 2,203,775
------------
ELECTRONICS -- 2.8%
AMP, Inc. 19,400 666,875
Emerson Electric Co. 27,400 1,233,000
General Electric Co. 41,200 4,089,100
Motorola, Inc. 26,300 1,587,862
------------
7,576,837
------------
ENERGY & UTILITIES -- 1.9%
Entergy Corp. 85,800 2,102,100
NIPSCO Industries, Inc. 36,600 1,436,550
PECO Energy Co. 75,500 1,538,312
------------
5,076,962
------------
ENTERTAINMENT & LEISURE -- 1.6%
La Quinta Inns, Inc. 85,800 1,758,900
Walt Disney Co. 35,500 2,591,500
------------
4,350,400
------------
Number
of Shares Value
---------- ------------
FINANCE -- 3.7%
Dean Witter Discover & Co. 102,900 $ 3,588,637
Fannie Mae 82,300 2,973,087
#Fleet Financial Group, Inc. 57,100 3,268,975
------------
9,830,699
------------
FOOD & AGRICULTURE -- 0.7%
CPC International, Inc. 22,900 1,877,800
------------
INSURANCE -- 3.5%
Allstate Corp. 25,400 1,508,125
American International Group, Inc. 34,300 4,025,962
General Re Corp. 12,600 1,990,800
The Chubb Corp. 36,600 1,971,825
------------
9,496,712
------------
MACHINERY & HEAVY EQUIPMENT -- 1.1%
Illinois Tool Works, Inc. 36,600 2,987,475
------------
MANUFACTURING -- 0.8%
Tenneco, Inc. 57,200 2,230,800
------------
MEDICAL & MEDICAL SERVICES -- 1.4%
Medtronic, Inc. 38,900 2,421,525
#United Healthcare Corp. 28,600 1,362,075
------------
3,783,600
------------
METAL & MINING -- 2.0%
Minnesota Mining &
Manufacturing Co. 26,300 2,222,350
Phelps Dodge Corp. 41,200 3,012,750
------------
5,235,100
------------
MOTOR VEHICLES -- 2.0%
Chrysler Corp. 32,000 960,000
Ford Motor Co. 45,700 1,433,837
General Motors Corp. 21,700 1,201,637
Goodyear Tire & Rubber Co. 33,200 1,734,700
------------
5,330,174
------------
OIL & GAS -- 3.3%
Chevron Corp. 9,200 640,550
Exxon Corp. 32,000 3,448,000
Mobil Corp. 11,400 1,489,125
#Royal Dutch Petroleum Co. 18,300 3,202,500
------------
8,780,175
------------
PAPER & FOREST PRODUCTS -- 0.4%
International Paper Co. 27,400 1,065,175
------------
PHARMACEUTICALS -- 7.0%
American Home Products Corp. 68,600 4,116,000
Bristol-Myers Squibb Co. 68,600 4,047,400
Eli Lilly & Co. 54,900 4,515,525
Johnson & Johnson Co. 40,000 2,115,000
Merck & Co., Inc. 48,000 4,044,000
------------
18,837,925
------------
PUBLISHING & PRINTING -- 0.8%
McGraw-Hill Companies, Inc. 43,500 2,223,938
------------
RESTAURANTS -- 0.9%
#McDonald's Corp. 51,500 2,433,375
------------
See accompanying notes to financial statements.
36
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
BALANCED PORTFOLIO (CONTINUED)
Number
AS OF MARCH 31, 1997 (UNAUDITED) of Shares Value
--------- ------------
COMMON STOCKS (CONTINUED)
RETAIL MERCHANDISING -- 3.2%
#K Mart Corp. 110,900 $ 1,344,663
Kroger Co. 46,900 2,380,175
Sears Roebuck & Co. 51,500 2,587,875
Wal-Mart Stores, Inc. 78,900 2,199,338
------------
8,512,051
------------
SOAPS & COSMETICS -- 1.8%
Colgate-Palmolive Co. 28,600 2,849,275
Procter & Gamble Co. 17,200 1,978,000
------------
4,827,275
------------
TELECOMMUNICATIONS -- 3.9%
Alltel Corp. 53,800 1,748,500
AT &T Corp. 40,000 1,390,000
GTE Corp. 38,900 1,813,713
Lucent Technologies, Inc. 13,000 685,750
NYNEX Corp. 43,500 1,984,688
#SBC Communications, Inc. 52,600 2,768,075
------------
10,390,726
------------
TOBACCO -- 1.6%
Philip Morris Co., Inc. 36,600 4,176,975
------------
TRANSPORTATION -- 0.9%
Norfolk Southern Corp. 29,700 2,531,925
------------
TOTAL COMMON STOCKS
(Cost $124,144,727) 169,422,617
------------
Par
Maturity (000)
---------- ----------
U.S. TREASURY AND AGENCY
OBLIGATIONS -- 9.2%
Federal Home Loan Bank Bond
4.90% 04/27/98 $ 1,000 990,000
Small Business Administration Program
6.37% 02/15/16 1,113 1,047,951
Small Business Administration,
Series 96-1, Class C
7.35% 08/10/06 1,050 1,034,578
U.S. Treasury Bonds
6.62% 02/15/27 240 226,195
U.S. Treasury Notes
6.25% 03/31/99 10,610 10,572,652
5.87% 02/15/00 230 225,796
6.50% 08/31/01 1,450 1,436,776
12.50% 08/15/14 2,045 2,935,270
U.S. Treasury Notes CPI
3.37% 01/15/07 6,148 6,044,098
------------
TOTAL U.S. TREASURY AND
AGENCY OBLIGATIONS
(Cost $24,888,417) 24,513,316
------------
MORTGAGE PASS-THROUGHS -- 8.2%
Federal Home Loan Mortgage Corporation
ARM**
6.08% 08/01/20 2,704 2,650,128
Federal Home Loan Mortgage Corporation
7.50% 07/26/09 9,772 9,605,036
9.00% 06/01/21 785 824,257
6.50% 02/01/26 24 22,774
Federal Home Loan Mortgage Corporation
15 Year
7.50% 10/01/20 2,285 2,287,142
Par
Maturity (000) Value
---------- -------- -----------
MORTGAGE PASS-THROUGHS (CONTINUED)
Federal National Mortgage
Association 15 Year
7.00% 10/10/05 $ 3,693 $ 3,631,616
Government National Mortgage
Association
7.50% 01/23/08 2,982 2,923,598
------------
TOTAL MORTGAGE PASS-THROUGHS
(Cost $22,257,064) 21,944,551
------------
COMMERCIAL MORTGAGE-BACKED
SECURITIES -- 1.1%
Comercial Mortgage Acceptance Corp.,
Series 96, Class A2
6.29% 09/15/23 844 832,706
CS First Boston Mortgage Securities Corp.,
Series 95, Class C
7.45% 11/25/27 250 245,938
Merrill Lynch Mortgage Investors, Inc.,
Series 95, Class C
7.56% 05/25/15 450 444,165
Merrill Lynch Mortgage Investors, Inc.,
Series 96, Class C
7.24% 04/25/28 1,000 992,969
Structured Asset Securities Corp. ,
Series 1996-CFL, Class X1 (IO)
7.50% 02/25/28 8,464 433,760
------------
TOTAL COMERCIAL MORTGAGE-
BACKED SECURITIES
(Cost $2,971,195) 2,949,538
------------
MULTIPLE CLASS MORTGAGE
PASS-THROUGHS -- 1.2%
Community Program Loan Trust,
Series 87, Class A
4.50% 10/01/18 2,050 1,702,141
Federal Home Loan Mortgage
Corporation Series, 1907 LP (PO)
6.65% 06/15/20 700 394,844
Federal National Mortgage Association,
Series 1996-54, Class A (PO)
6.50% 04/25/21 668 512,278
Federal National Mortgage Association,
Series 1993-113, Class B (PO)
6.50% 07/25/23 460 287,621
Federal National Mortgage Association,
Series 1996-56, Class E (PO)
7.00% 04/25/23 244 123,466
Federal National Mortgage Association,
Series 261, Class 1 (PO)
6.75% 10/01/24 273 188,338
------------
TOTAL MULTIPLE CLASS MORTGAGE
PASS-THROUGHS
(Cost $3,422,962) 3,208,688
------------
See accompanying notes to financial statements.
37
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
BALANCED PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
---------- ------- -----------
ASSET BACKED SECURITIES -- 4.1%
Chase Manhattan Grantor Trust,
Series 96-A, Class A
5.20% 02/15/02 $ 2,076 $ 2,045,884
CIT Group Securitization Corp.,
Series 95-2, Class A
7.65% 05/15/26 450 413,789
Discover Card Master Trust,
Series 96-4, Class A
5.79% 10/16/03 1,500 1,529,531
Equivantage Home Equity Loan Trust,
Series 1996-1, Class A
6.55% 10/25/25 560 545,971
Green Tree Financial Corp.,
Series 1996-6 A6
7.95% 09/15/27 1,000 987,969
Green Tree Financial Corp.,
Series 93-3, Class B
6.85% 10/15/18 1,300 1,247,188
Green Tree Financial Corp.,
Series 95-7, Class B1
7.35% 11/15/26 400 390,875
Nissan Auto Receivable Grantor Trust,
Series 95, Class A
6.10% 08/15/01 802 799,686
Security Pacific Home Equity,
Series 91-1, Class B
8.85% 05/15/21 977 1,001,730
Standard Credit Card Master Trust,
Series 95-1, Class A
8.25% 01/08/07 1,000 1,057,673
Student Loan Marketing Association,
Series 1996-4, Class A1
5.60% 07/25/04 1,036 1,034,893
------------
TOTAL ASSET BACKED SECURITIES
(Cost $11,247,614) 11,055,189
------------
CORPORATE BONDS -- 8.0%
AFC Capital Trust I
8.20% 02/03/27 1,000 979,977
Anthem Insurance
9.00% 04/01/27 1,000 983,778
Associates Corp., N.A.
7.25% 05/15/98 200 202,040
Bear Stearns Capital Trust
7.00% 01/15/27 1,050 1,030,092
Burlington Industries
7.25% 09/15/05 200 190,691
Burlington Northern
7.00% 12/15/25 600 532,734
Coca-Cola Enterprises
5.71% 03/18/37 1,125 1,120,207
Commonwealth Ed. Fin. II
8.50% 07/15/27 1,000 965,374
Equitable Life
7.70% 12/01/15 350 336,279
Fairfax Financial
8.30% 04/15/26 550 546,434
First Security
8.41% 12/15/26 1,000 987,863
Firststar Capital Trust I
8.32% 12/15/26 1,000 983,707
General Electric Capital
8.00% 01/15/98 200 202,956
Par
Maturity (000) Value
---------- ------- -----------
CORPORATE BONDS (CONTINUED)
General Motors Acceptance Corp.
Pass-Through Trust, Series 1997
6.50% 01/17/00 $ 1,100 $ 1,085,461
Great Western Finance
8.20% 02/01/27 1,000 971,331
Hydro-Quebec Canada
7.50% 04/01/16 900 867,513
Israel Electric Corp., LTD.
7.87% 12/15/26 350 336,547
ITT Corp.
7.37% 11/15/15 210 186,655
7.75% 11/15/25 350 306,866
Keycorp Institute A
7.82% 12/01/26 1,000 940,634
Liberty Mutual***
8.50% 05/15/25 750 763,712
Meridian Bancorp
6.62% 06/15/00 450 444,372
Metropolitan Life
6.30% 11/01/03 300 282,234
Mobile Energy Services Co.
8.66% 01/01/17 289 287,870
Nabisco, Inc.
6.85% 06/15/05 300 286,095
7.05% 07/15/07 180 171,797
7.55% 06/15/15 700 668,568
News America Holdings
7.75% 12/01/45 610 547,475
Paine Webber Group, Inc.
7.87% 02/15/03 1,000 1,012,624
Petronas Corp.
7.62% 10/15/26 800 773,081
Quebec Province
7.50% 07/15/23 400 378,149
Salomon Brothers
8.90% 02/15/00 300 313,467
Reliance Industries
9.37% 06/24/26 305 320,221
Texas Utilities Capital Trust
8.17% 02/01/37 420 405,042
Time Warner -Pats
6.10% 12/30/01 1,000 938,750
-----------
TOTAL CORPORATE BONDS
(Cost $21,809,055) 21,350,596
-----------
MUNICIPAL BONDS -- 0.8%
Los Angeles County Taxable
Pension Obligation
8.62% 06/30/06 600 647,250
8.62% 06/30/06 1,050 1,137,938
6.97% 06/30/08 400 384,000
-----------
TOTAL MUNICIPAL BONDS
(Cost $2,133,116) 2,169,188
-----------
OPTIONS -- 0.0%
U.S.Treasury Notes, expiring 6/17/97
(Cost $49,969) 520 141,375
-----------
See accompanying notes to financial statements.
38
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
STATEMENT OF NET ASSETS
BALANCED PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
---------- ------- -----------
SHORT TERM INVESTMENTS -- 7.3%
Federal Home Loan Bank Discount Notes
6.45% 04/01/97 $ 4,445 $ 4,445,000
Federal Home Loan Mortgage Corporation
Discount Notes
6.50% 04/01/97 2,255 2,255,000
5.50% 04/10/97 12,750 12,732,501
Smith Barney Money Market Fund 33 33,453
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $19,465,954) 19,465,954
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $232,390,073*) 103.1% 276,221,012
LIABILITIES IN EXCESS OF
OTHER ASSETS (3.1% (8,209,257)
------ ------------
NET ASSETS (Applicable to 1,962,106
Institutional shares, 9,604,252 Service
shares, 4,868,077 Investor A shares,
796,147 Investor B shares, and
1,697 Investor C shares outstanding) 100.0% $268,011,755
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($30,535,548 (DIVIDE) 1,962,106) $15.56
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SERVICE SHARE
($149,364,956 (DIVIDE) 9,604,252) $15.55
======
NET ASSET VALUE AND
REDEMPTION PRICE
PER INVESTOR A SHARE
($75,752,417 (DIVIDE) 4,868,077) $15.56
======
MAXIMUM OFFERING PRICE
PER INVESTOR A SHARE
($15.56 (DIVIDE) .955) $16.29
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 4.5%)
PER INVESTOR B SHARE
($12,332,540 (DIVIDE) 796,147) $15.49
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
(SUBJECT TO A MAXIMUM CONTINGENT
DEFERRED SALES CHARGE OF 1.0%)
PER INVESTOR C SHARE
($26,294 (DIVIDE) 1,697) $15.49
======
- ------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
Gross unrealized appreciation $47,785,904
Gross unrealized depreciation (3,954,965)
-----------
$43,830,939
===========
** Non-income producing security.
*** Principal amount of securities pledged as collateral is $500,000 on 8 net
long U.S. Treasury Bond futures contracts and 12 net long U.S. Treasury
Note futures contracts expiring June 1997. The value of such contracts on
March 31,1997 was $2,123,750, thereby resulting in an unrealized gain on
$11,750.
# Total or partial securities on loan. See accompanying notes to financial
statements.
39
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Large Cap Large Cap Mid-Cap Mid-Cap
Value Growth Value Growth Small Cap Small Cap
FOR THE SIX MONTHS ENDED Equity Equity Equity Equity Value Equity Growth Equity
MARCH 31, 1997 (UNAUDITED) Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
----------- ----------- ---------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Interest ..................................... $ 1,155,554 $ 785,019 $ 101,728 $ 184,699 $ 585,644 $ 2,541,446
Dividends .................................... 17,015,205 3,852,623 303,796 9,481 3,130,743 64,578
Net investment income from The U.S.
Large Company Series of The DFA
Investment Trust Company ................... -- -- -- -- -- --
Foreign taxes withheld ....................... -- -- -- -- -- --
------------ ------------ --------- ----------- ----------- -------------
Total investment income ................. 18,170,759 4,637,642 405,524 194,180 3,716,387 2,606,024
------------ ------------ --------- ----------- ----------- -------------
Expenses:
Investment advisory fee ...................... 3,391,682 1,928,805 109,315 107,853 944,709 1,435,970
Administration fee ........................... 1,343,689 786,317 31,563 31,144 395,060 600,497
Custodian fee ................................ 105,604 65,092 12,158 10,710 43,262 57,186
Transfer agent fee ........................... 206,970 112,900 6,818 6,841 74,231 99,839
Service fees ................................. 751,111 316,066 4,807 4,871 133,773 260,424
Distribution fees ............................ 88,642 50,144 276 329 63,992 120,150
Legal and audit .............................. 43,818 24,832 2,127 2,168 11,604 17,756
Printing ..................................... 41,518 23,529 1,064 1,084 10,996 16,822
Registration fees and expenses ............... 19,891 43,971 3,586 3,647 27,561 36,619
Organization ................................. -- -- -- -- -- 2,198
Trustees' fees and officer's salary .......... 13,694 7,760 1,064 1,084 3,627 5,549
Other ........................................ 17,750 10,273 2,127 2,168 6,062 10,969
------------ ------------ --------- ----------- ----------- -------------
6,024,369 3,369,689 174,905 171,899 1,714,877 2,663,979
Less fees voluntarily waived ................. (457,609) (365,599) (17,762) (15,132) (29,690) (21,338)
------------ ------------ --------- ----------- ----------- -------------
Total operating expenses ................ 5,566,760 3,004,090 157,143 156,767 1,685,187 2,642,641
------------ ------------ --------- ----------- ----------- -------------
Interest expense ............................. -- -- -- -- -- --
------------ ------------ --------- ----------- ----------- -------------
Total expenses .......................... 5,566,760 3,004,090 157,143 156,767 1,685,187 2,642,641
------------ ------------ --------- ----------- ----------- -------------
Net investment income (loss) .................... 12,603,999 1,633,552 248,381 37,413 2,031,200 (36,617)
------------ ------------ --------- ----------- ----------- -------------
Realized and unrealized gain on investments
and foreign currency transactions:
Net realized gain (loss) from:
Investment transactions .................... 107,954,058 46,664,630 (36,769) (1,214,740) 25,472,050 4,689,062
Futures contracts .......................... -- 2,905,474 -- 223,970 -- 10,131,578
Foreign currency related transactions ...... -- -- -- -- -- --
------------ ------------ --------- ----------- ----------- -------------
107,954,058 49,570,104 (36,769) (990,770) 25,472,050 14,820,640
------------ ------------ --------- ----------- ----------- -------------
Change in unrealized appreciation
(depreciation) from:
Investments ................................ 19,387,317 (25,545,084) (688,023) (5,343,186) (281,594) (136,374,909)
Futures contracts .......................... -- (1,382,125) -- (971,200) -- (7,555,651)
Foreign currency related transactions ...... -- -- -- -- -- --
------------ ------------ --------- ----------- ----------- -------------
19,387,317 (26,927,209) (688,023) (6,314,386) (281,594) (143,930,560)
------------ ------------ --------- ----------- ----------- -------------
Net gain (loss) on investments and foreign
currency transactions ........................ 127,341,375 22,642,895 (724,792) (7,305,156) 25,190,456 (129,109,920)
------------ ------------ --------- ----------- ----------- -------------
Net increase (decrease) in assets resulting
from operations .............................. $139,945,374 $ 24,276,447 $(476,411) $(7,267,743) $27,221,656 $(129,146,537)
============ ============ ========= =========== =========== =============
</TABLE>
See accompanying notes to financial statements.
40
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
<TABLE>
<CAPTION>
International
International Emerging Select Index
FOR THE SIX MONTHS ENDED Equity Markets Equity Equity Balanced
MARCH 31, 1997 (UNAUDITED) Portfolio Portfolio Portfolio Portfolio Portfolio
------------- ------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Investment income:
Interest ..................................... $ 768,766 $ 141,584 $ 357,542 $ -- $ 3,338,088
Dividends .................................... 3,691,366 835,008 4,417,944 -- 1,826,674
Net investment income from The U.S.
Large Company Series of The DFA
Investment Trust Company ................... -- -- -- 2,765,439 --
Foreign taxes withheld ....................... (466,808) (29,469) -- -- --
----------- ----------- ----------- ----------- -----------
Total investment income ................. 3,993,324 947,123 4,775,486 2,765,439 5,164,762
----------- ----------- ----------- ----------- -----------
Expenses:
Investment advisory fee ...................... 2,220,948 807,752 1,245,376 -- 754,881
Administration fee ........................... 671,729 148,626 520,684 333,041 315,677
Custodian fee ................................ 370,040 172,508 48,536 -- 34,239
Transfer agent fee ........................... 112,076 23,282 76,659 53,011 67,545
Service fees ................................. 254,411 66,450 196,454 207,477 248,979
Distribution fees ............................ 53,181 7,839 26,190 73,947 190,280
Legal and audit .............................. 20,876 3,984 14,312 16,656 11,079
Printing ..................................... 19,780 3,775 13,561 8,432 8,612
Registration fees and expenses ............... 31,168 28,258 24,144 22,083 19,891
Organization ................................. -- 4,326 2,193 -- --
Trustees' fees and officer's salary .......... 6,525 1,244 4,472 2,796 2,841
Other ........................................ 8,221 11,512 5,635 25,540 8,551
----------- ----------- ----------- ----------- -----------
3,768,955 1,279,556 2,178,216 742,983 1,662,575
Less fees voluntarily waived ................. (314,102) (53,783) (253,575) (305,596) (121,314)
----------- ----------- ----------- ----------- -----------
Total operating expenses ................ 3,454,853 1,225,773 1,924,641 437,387 1,541,261
----------- ----------- ----------- ----------- -----------
Interest expense ............................. -- -- -- -- 4,243
----------- ----------- ----------- ----------- -----------
Total expenses .......................... 3,454,853 1,225,773 1,924,641 437,387 1,545,504
----------- ----------- ----------- ----------- -----------
Net investment income (loss) .................... 538,471 (278,650) 2,850,845 2,328,052 3,619,258
----------- ----------- ----------- ----------- -----------
Realized and unrealized gain on investments
and foreign currency transactions:
Net realized gain (loss) from:
Investment transactions .................... (4,600,027) 2,775,684 20,313,693 (451,507) 8,815,761
Futures contracts .......................... -- -- 1,108,388 -- 733,572
Foreign currency related transactions ...... (645,351) (69,955) -- -- --
----------- ----------- ----------- ----------- -----------
(5,245,378) 2,705,729 21,422,081 (451,507) 9,549,333
----------- ----------- ----------- ----------- -----------
Change in unrealized appreciation
(depreciation) from:
Investments ................................ 19,808,478 13,944,234 24,737,313 24,279,669 7,592,914
Futures contracts .......................... -- -- (407,003) -- 55,385
Foreign currency related transactions ...... 365,288 4,177 -- -- --
----------- ----------- ----------- ----------- -----------
20,173,766 13,948,411 24,330,310 24,279,669 7,648,299
----------- ----------- ----------- ----------- -----------
Net gain (loss) on investments and foreign
currency transactions ........................ 14,928,388 16,654,140 45,752,391 23,828,162 17,197,632
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in assets resulting
from operations .............................. $15,466,859 $16,375,490 $48,603,236 $26,156,214 $20,816,890
=========== =========== =========== =========== ===========
</TABLE>
41
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Mid-Cap
Value
Large Cap Large Cap Equity
Value Equity Portfolio Growth Equity Portfolio Portfolio
------------------------------ -------------------------- -----------
For the
Period
For the Six For the For the Six Year 12/27/961
Months Ended Year Ended Months Ended Year Ended through
3/31/97 9/30/96 3/31/97 9/30/96 3/31/97
-------------- -------------- ------------ ------------ -----------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets:
Operations:
Net investment income
(deficit)............... $ 12,603,999 $ 23,256,170 $ 1,633,552 $ 2,498,099 $ 248,381
Net gain (loss) on
investments and
foreign currency
related transactions... 127,341,375 171,442,481 22,642,895 99,719,777 (724,792)
-------------- -------------- ------------ ------------ -----------
Net increase (decrease)
in net assets
resulting from
operations............. 139,945,374 194,698,651 24,276,447 102,217,876 (476,411)
-------------- -------------- ------------ ------------ -----------
Distributions to
shareholders from:
Net investment income:
Institutional Shares..... (7,852,195) (14,286,618) (2,282,437) (1,136,763) (195,989)
Service Shares........... (4,771,369) (8,962,904) (551,885) (254,368) (30,401)
Investor A Shares........ (298,472) (426,677) (28,989) -- (1,909)
Investor B Shares........ (48,661) (15,517) -- -- (1,019)
Investor C Shares........ (3,267) (811) -- -- (25)
-------------- -------------- ------------ ------------ -----------
Total distribution from
net investment income.. (12,973,964) (23,692,527) (2,863,311) (1,391,131) (229,343)
-------------- -------------- ------------ ------------ -----------
Net realized gains:
Institutional Shares..... (118,697,319) (34,958,288) (23,813,741) (6,935,080) --
Service Shares........... (74,902,263) (12,256,162) (9,521,137) (2,398,963) --
Investor A Shares........ (4,450,693) (1,214,058) (845,179) (303,768) --
Investor B Shares........ (686,114) -- (142,913) -- --
Investor C Shares........ (37,282) -- -- -- --
-------------- -------------- ------------ ------------ -----------
Total distributions
from net realized
gains.................. (198,773,671) (48,428,508) (34,322,970 (9,637,811) --
-------------- -------------- ------------ ------------ -----------
Total distributions
to shareholders........ (211,747,635) (72,121,035) (37,186,281) (11,028,942) (229,343)
-------------- -------------- ------------ ------------ -----------
Capital share transactions... 63,919,752 399,261,871 (28,136,245) 301,601,842 68,850,882
-------------- -------------- ------------ ------------ -----------
Total increase (decrease)
in net assets.......... (7,882,509) 521,839,487 (41,046,079) 392,790,776 68,145,128
Net assets:
Beginning of period...... 1,217,853,950 696,014,463 691,136,745 298,345,969 --
-------------- -------------- ------------ ------------ -----------
End of period............ $1,209,971,441 $1,217,853,950 $650,090,666 $691,136,745 $68,145,128
============== ============== ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Mid-Cap
Growth
Equity Small Cap Small Cap
Portfolio Value Equity Portfolio Growth Equity Portfolio
---------- --------------------------- ---------------------------
For the
Period
12/27/961 For the Six For the For the Six For the
through Months Ended Year Ended Months Ended Year Ended
3/31/97 3/31/97 9/30/96 3/31/97 9/30/96
----------- ------------ ------------ ------------- ------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets:
Operations:
Net investment income
(deficit)............... $ 37,413 $ 2,031,200 $ 1,600,08 $ (36,617) $ (726,338)
Net gain (loss) on
investments and
foreign currency
related transactions... (7,305,156) 25,190,456 31,503,290 (129,109,920) 140,147,401
----------- ------------ ------------ ------------- ------------
Net increase (decrease)
in net assets
resulting from
operations............. (7,267,743) 27,221,656 33,103,374 (129,146,537 139,421,063
----------- ------------ ------------ ------------- ------------
Distributions to
shareholders from:
Net investment income:
Institutional Shares..... -- (1,743,547) (1,400,389) (433,573) (211,287)
Service Shares........... -- (530,152) (268,681) -- --
Investor A Shares........ -- (140,286) (35,201) -- --
Investor B Shares........ -- (10,398) -- -- --
Investor C Shares........ -- (762) -- -- --
----------- ------------ ------------ ------------- ------------
Total distribution from
net investment income.. -- (2,425,145) (1,704,271) (433,573) (211,287)
----------- ------------ ------------ ------------- ------------
Net realized gains:
Institutional Shares..... -- (29,222,142) (9,611,837) (21,197,629) --
Service Shares........... -- (10,944,596) (3,671,321) (10,929,423) --
Investor A Shares........ -- (3,377,127) (1,218,870) (2,203,319) --
Investor B Shares........ -- (336,403) (92,835) (608,317) --
Investor C Shares........ -- (416) -- (61,208) --
----------- ------------ ------------ ------------- ------------
Total distributions
from net realized
gains.................. -- (43,880,684) (14,594,863) (34,999,896) --
----------- ------------ ------------ ------------- ------------
Total distributions
to shareholders........ -- (46,305,829) (16,299,134) (35,433,469) (211,287)
----------- ------------ ------------ ------------- ------------
Capital share transactions... 71,290,396 47,783,333 53,279,248 150,123,176 138,191,328
----------- ------------ ------------ ------------- ------------
Total increase (decrease)
in net assets.......... 64,022,653 28,699,160 70,083,488 (14,456,830) 277,401,104
Net assets:
Beginning of period...... -- 322,770,974 252,687,486 493,267,477 215,866,373
----------- ------------ ------------ ------------- ------------
End of period............ $64,022,653 $351,470,134 $322,770,974 $ 478,810,647 $493,267,477
=========== ============ ============ ============= ============
</TABLE>
COMPASS CAPITAL FUNDS [LOGO OMITTED
<TABLE>
<CAPTION>
International International Emerging
Equity Portfolio Markets Portfolio
-------------------------- ---------------------------
For the Six For the For the Six Year
Months Ended Year Ended Months Ended Year Ended
3/31/97 9/30/96 3/31/97 9/30/96
------------ ------------ ------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Increase (decrease) in
net assets:
Operations:
Net investment income
(deficit)............... $ 538,471 $ 4,246,980 $ (278,650) $ 661,503
Net gain (loss) on
investments and
foreign currency
related transactions... 14,928,388 34,089,605 16,654,140 4,227,613
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............. 15,466,859 38,336,585 16,375,490 4,889,116
------------ ------------ ------------ ------------
Distributions to
shareholders from:
Net investment income:
Institutional Shares..... (8,151,028) (4,294,793) (141,999) --
Service Shares........... (2,965,174) (1,383,668) -- --
Investor A Shares........ (336,258) (210,717) -- --
Investor B Shares........ (41,787) (14,131) -- --
Investor C Shares........ (32) -- -- --
------------ ------------ ------------ ------------
Total distribution from
net investment income.. (11,494,279) (5,903,309) (141,999) --
------------ ------------ ------------ ------------
Net realized gains:
Institutional Shares..... (11,783,420) (16,180,662) -- (45,943)
Service Shares........... (4,941,534) (5,506,015) -- (19,291)
Investor A Shares........ (620,819) (869,371) -- (2,963)
Investor B Shares........ (90,494) (61,711) -- --
Investor C Shares........ -- -- -- --
------------ ------------ ------------ ------------
Total distributions
from net realized
gains.................. (17,436,267) (22,617,759) -- (68,197)
------------ ------------ ------------ ------------
Total distributions
to shareholders........ (28,930,546) (28,521,068) (141,999) (68,197)
------------ ------------ ------------ ------------
Capital share transactions... 55,868,667 125,201,967 32,238,334 58,140,563
------------ ------------ ------------ ------------
Total increase (decrease)
in net assets.......... 42,404,980 135,017,484 48,471,825 62,961,482
Net assets:
Beginning of period...... 572,442,752 437,425,268 109,863,429 46,901,947
------------ ------------ ------------ ------------
End of period............ $614,847,732 $572,442,752 $158,335,254 $109,863,429
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Select Index
Equity Portfolio Equity Portfolio Balanced Portfolio
-------------------------- -------------------------- --------------------------
For the Six Year For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
3/31/97 9/30/96 3/31/97 9/30/96 3/31/97 9/30/96
------------ ------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets:
Operations:
Net investment income
(deficit)............... $ 2,850,845 $ 6,081,781 $ 2,328,052 $ 4,616,698 $ 3,619,258 $ 6,562,917
Net gain (loss) on
investments and
foreign currency
related transactions... 45,752,391 57,336,010 23,828,162 33,592,745 17,197,632 23,008,377
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............. 48,603,236 63,417,791 26,156,214 38,209,443 20,816,890 29,571,294
------------ ------------ ------------ ------------ ------------ ------------
Distributions to
shareholders from:
Net investment income:
Institutional Shares..... (2,243,132) (4,512,721) (1,236,041) (2,965,619) (515,215) (938,462)
Service Shares........... (744,969) (1,433,794) (902,439) (1,824,167) (2,059,765) (3,553,382)
Investor A Shares........ (45,478) (61,193) (104,738) (196,504) (989,456) (1,882,795)
Investor B Shares........ (9,221) (3,156) (44,230) (14,252) (105,542) (101,081)
Investor C Shares........ (14) -- (25,885) (1,308) (130) --
------------ ------------ ------------ ------------ ------------ ------------
Total distribution from
net investment income.. (3,042,814) (6,010,864) (2,313,333) (5,001,850) (3,670,108) (6,475,720)
------------ ------------ ------------ ------------ ------------ ------------
Net realized gains:
Institutional Shares..... (24,271,695) (8,002,431) (6,172,085) (13,669,694) (1,274,430) (242,642)
Service Shares........... (10,159,155) (2,803,130) (5,024,090) (8,539,902) (4,988,172) (784,225)
Investor A Shares........ (598,242) (135,347) (620,161) (935,892) (2,456,117) (626,288)
Investor B Shares........ (140,029) -- (141,880) -- (283,940) (32,915)
Investor C Shares........ (383) -- (20,100) -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions
from net realized
gains.................. (35,169,504) (10,940,908) (11,978,316) (23,145,488) (9,002,659) (1,686,070)
------------ ------------ ------------ ------------ ------------ ------------
Total distributions
to shareholders........ (38,212,318) (16,951,772) (14,291,649) (28,147,338) (12,672,767) (8,161,790)
------------ ------------ ------------ ------------ ------------ ------------
Capital share transactions... 67,020,213 22,892,723 64,145,925 58,712,108 8,947,657 48,301,845
------------ ------------ ------------ ------------ ------------ ------------
Total increase (decrease)
in net assets.......... 77,411,131 69,358,742 76,010,490 68,774,213 17,091,780 69,711,349
Net assets:
Beginning of period...... 395,685,211 326,326,469 246,244,003 177,469,790 250,919,975 181,208,626
------------ ------------ ------------ ------------ ------------ ------------
End of period............ $473,096,342 $395,685,211 $322,254,493 $246,244,003 $268,011,755 $250,919,975
============ ============ ============ ============ ============ ============
<FN>
- ----------
1 Commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
42-43
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET NET GAIN DISTRIBUTIONS NET
ASSET (LOSS) ON DISTRIBUTIONS FROM NET ASSET
VALUE NET INVESTMENTS FROM NET DISTRIBUTIONS REALIZED VALUE
BEGINNING INVESTMENT (BOTH REALIZED INVESTMENT FROM CAPITAL END OF TOTAL
OF PERIOD INCOME AND UNREALIZED) INCOME CAPITAL GAINS PERIOD RETURN
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------
LARGE CAP VALUE EQUITY
- ----------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $15.35 $0.16 $1.51 $(0.16) -- $(2.52) $14.34 11.70%
9/30/96 13.92 0.35 2.41 (0.36) -- (0.97) 15.35 21.01
9/30/95 11.62 0.34 2.54 (0.33) -- (0.25) 13.92 25.73
9/30/94 11.68 0.27 0.16 (0.27) -- (0.22) 11.62 3.76
9/30/93 9.78 0.22 1.91 (0.23) -- -- 11.68 21.92
4/20/921 through 9/30/92 10.00 0.12 (0.24) (0.10) -- -- 9.78 (1.19)
SERVICE CLASS
10/1/96 through 3/31/977 $15.35 $0.13 $1.52 $(0.14) -- $(2.52) $14.34 11.56%
9/30/96 13.92 0.32 2.40 (0.32) -- (0.97) 15.35 20.68
9/30/95 11.62 0.30 2.55 (0.30) -- (0.25) 13.92 25.40
9/30/94 11.68 0.25 0.16 (0.25) -- (0.22) 11.62 3.51
7/29/931 through 9/30/93 11.21 0.04 0.48 (0.05) -- -- 11.68 4.64
INVESTOR A CLASS
10/1/96 through 3/31/977 $15.35 $0.13 $1.51 $(0.13) -- $(2.52) $14.34 11.48%3
9/30/96 13.92 0.28 2.41 (0.29) -- (0.97) 15.35 20.523
9/30/95 11.62 0.27 2.56 (0.28) -- (0.25) 13.92 25.223
9/30/94 11.69 0.23 0.15 (0.23) -- (0.22) 11.62 3.323
9/30/93 9.78 0.22 1.91 (0.22) -- -- 11.69 21.953
5/2/921 through 9/30/92 10.00 0.12 (0.24) (0.10) -- -- 9.78 (1.19)3
INVESTOR B CLASS
10/1/96 through 3/31/977 $15.32 $0.09 $1.49 $(0.09) -- $(2.52) $14.29 11.09%4
1/18/961 through 9/30/96 13.56 0.13 1.80 (0.17) -- -- 15.32 14.264
INVESTOR C CLASS
10/1/96 through 3/31/977 $15.32 $0.09 $1.49 $ (0.09) -- $(2.52) $14.29 11.08%4
8/16/961 through 9/30/96 14.91 0.02 0.45 (0.06) -- -- 15.32 3.164
- -----------------------
LARGE CAP GROWTH EQUITY
- -----------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $14.96 $0.04 $0.46 $(0.07) -- $(0.74) $14.65 3.31%
9/30/96 13.03 0.08 2.29 (0.06) -- (0.38) 14.96 18.67
9/30/95 10.19 0.13 2.88 (0.17) -- -- 13.03 29.88
9/30/94 11.58 0.06 (1.34) (0.01) -- (0.10) 10.19 (11.14)
9/30/93 9.92 0.06 2.07 (0.07) (0.01) (0.39) 11.58 22.18
9/30/92 10.28 0.21 0.30 (0.37) -- (0.50) 9.92 4.98
SERVICE CLASS
10/1/96 through 3/31/977 $14.95 $0.02 $0.46 $(0.04) -- $(0.74) $14.65 3.17%
9/30/96 13.02 0.05 2.28 (0.02) -- (0.38) 14.95 18.34
9/30/95 10.18 0.10 2.87 (0.13) -- -- 13.02 29.43
9/30/94 11.57 0.03 (1.32) -- -- (0.10) 10.18 (11.20)
7/29/931 through 9/30/93 10.54 -- 1.03 -- -- -- 11.57 9.77
INVESTOR A CLASS
10/1/96 through 3/31/977 $14.94 $0.01 $0.46 $(0.02) -- $(0.74) $14.65 3.13%3
9/30/96 13.01 0.02 2.29 -- -- (0.38) 14.94 18.183
9/30/95 10.16 0.08 2.87 (0.10) -- -- 13.01 29.263
9/30/94 11.57 0.02 (1.33) -- -- (0.10) 10.16 (11.38)3
9/30/93 9.92 0.02 2.10 (0.07) (0.01) (0.39) 11.57 22.083
3/14/921 through 9/30/92 10.09 0.08 (0.10) (0.15) -- -- 9.92 (0.17)3
INVESTOR B CLASS
10/1/96 through 3/31/977 $14.86 $(0.03) $0.44 -- -- $(0.74) $14.53 2.70%4
1/24/961 through 9/30/96 13.08 (0.02) 1.80 -- -- -- 14.86 13.614
INVESTOR C CLASS
1/24/971 through 3/31/977 $15.23 -- $(0.70) -- -- -- $14.53 (4.60)%4
- --------------------
MID-CAP VALUE EQUITY
- --------------------
INSTITUTIONAL CLASS
12/27/961 through 3/31/977 $10.00 $0.05 $0.04 $(0.04) -- -- $10.05 0.84%
SERVICE CLASS
12/27/961 through 3/31/977 $10.00 $0.02 $0.05 $(0.03) -- -- $10.04 0.71%
INVESTOR A CLASS
12/27/961 through 3/31/977 $10.00 $0.01 $0.06 $(0.03) -- -- $10.04 0.70%3
INVESTOR B CLASS
12/27/961 through 3/31/977 $10.00 $0.01 $0.06 $ (0.03) -- -- $10.04 0.65%4
INVESTOR C CLASS
12/27/961 through 3/31/977 $10.00 $0.01 $0.06 $ (0.03) -- -- $10.04 0.65%4
</TABLE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
<TABLE>
<CAPTION>
RATIO OF NET
NET RATIO OF EXPENSES INVESTMENT INCOME
ASSETS RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS PORTFOLIO AVERAGE
PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING TURNOVER COMMISSION
(000) ASSETS WAIVERS) ASSETS WAIVERS) RATE RATE5
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------
LARGE CAP VALUE EQUITY
- ----------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $668,741 0.75%2 0.82%2 2.15%2 2.08%2 22% $0.0573
9/30/96 731,024 0.75 0.84 2.40 2.32 60 0.0556
9/30/95 508,273 0.67 0.81 2.68 2.53 12 --
9/30/94 577,996 0.65 0.81 2.44 2.28 11 --
9/30/93 432,776 0.80 0.83 2.07 2.04 11 --
4/20/921 through 9/30/92 322,806 0.852 0.852 2.622 2.622 13 --
SERVICE CLASS
10/1/96 through 3/31/977 $495,085 1.05%2 1.12%2 1.83%2 1.76%2 22% $0.0573
9/30/96 457,283 1.05 1.14 2.13 2.04 60 0.0556
9/30/95 170,832 0.95 1.09 2.40 2.26 12 --
9/30/94 105,035 0.90 1.06 2.24 2.08 11 --
7/29/931 through 9/30/93 23,137 0.912 0.942 2.442 2.412 11 --
INVESTOR A CLASS
10/1/96 through 3/31/977 $36,032 1.22%2 1.29%2 1.69%2 1.62%2 22% $0.0573
9/30/96 26,190 1.22 1.31 1.93 1.84 60 0.0556
9/30/95 16,910 1.11 1.25 2.24 2.10 12 --
9/30/94 10,412 1.05 1.21 2.08 1.92 11 --
9/30/93 4,865 0.92 0.95 1.96 1.93 11 --
5/2/921 through 9/30/92 16 0.852 0.852 2.622 2.622 13 --
INVESTOR B CLASS
10/1/96 through 3/31/977 $9,465 1.94%2 2.01%2 0.96%2 0.89%2 22% $0.0573
1/18/961 through 9/30/96 3,152 1.922 2.002 1.342 1.252 60 0.0556
INVESTOR C CLASS
10/1/96 through 3/31/977 $648 1.95%2 2.02%2 0.93%2 0.86%2 22% $0.0573
8/16/961 through 9/30/96 205 1.802 1.882 1.292 1.202 60 0.0556
- -----------------------
LARGE CAP GROWTH EQUITY
- -----------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $419,833 0.75%2 0.85%2 0.57%2 0.47%2 41% $0.0593
9/30/96 481,171 0.75 0.86 0.63 0.51 58 0.0598
9/30/95 211,543 0.67 0.85 1.20 1.01 55 --
9/30/94 97,834 0.65 0.89 0.62 0.38 212 --
9/30/93 100,049 0.81 0.87 0.50 0.44 175 --
9/30/92 58,372 0.85 0.86 2.07 2.06 162 --
SERVICE CLASS
10/1/96 through 3/31/977 $206,568 1.05%2 1.15%2 0.28%2 0.18%2 41% $0.0593
9/30/96 191,023 1.05 1.17 0.31 0.20 58 0.0598
9/30/95 76,769 0.95 1.13 0.91 0.73 55 --
9/30/94 36,752 0.90 1.14 0.51 0.26 212 --
7/29/931 through 9/30/93 8,606 0.892 0.952 (0.03)2 (0.09)2 175 --
INVESTOR A CLASS
10/1/96 through 3/31/977 $19,325 1.22%2 1.32%2 0.11%2 0.01%2 41% $0.0593
9/30/96 16,579 1.22 1.34 0.15 0.04 58 0.0598
9/30/95 10,034 1.11 1.29 0.76 0.58 55 --
9/30/94 5,049 1.05 1.29 0.29 0.05 212 --
9/30/93 2,362 0.91 0.97 0.18 0.12 175 --
3/14/921 through 9/30/92 239 0.852 0.862 2.072 2.062 162 --
INVESTOR B CLASS
10/1/96 through 3/31/977 $4,350 1.95%2 2.05%2 (0.59)%2 (0.69)%2 41% $0.0593
1/24/961 through 9/30/96 2,364 1.932 2.052 (0.47)2 (0.58)2 58 0.0598
INVESTOR C CLASS
1/24/971 through 3/31/977 $15 1.72%2 1.82%2 (0.26)%2 (0.36)%2 41% $0.0593
- --------------------
MID-CAP VALUE EQUITY
- --------------------
INSTITUTIONAL CLASS
12/27/961 through 3/31/977 $57,121 1.11%2 1.24%2 1.87%2 1.74%2 8% $0.0529
SERVICE CLASS
12/27/961 through 3/31/977 $9,857 1.43%2 1.56%2 1.47%2 1.34%2 8% $0.0529
INVESTOR A CLASS
12/27/961 through 3/31/977 $707 1.60%2 1.73%2 1.33%2 1.20% 8% $0.0529
INVESTOR B CLASS
12/27/961 through 3/31/977 $450 2.26%2 2.39%2 0.75%2 0.62%2 8% $0.0529
INVESTOR C CLASS
12/27/961 through 3/31/977 $10 2.27%2 2.40%2 0.89%2 0.76%2 8% $0.0529
</TABLE>
See accompanying notes to financial statements.
44-45
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET NET GAIN DISTRIBUTIONS NET
ASSET (LOSS) ON DISTRIBUTIONS FROM NET ASSET
VALUE NET INVESTMENTS FROM NET DISTRIBUTIONS REALIZED VALUE
BEGINNING INVESTMENT (BOTH REALIZED INVESTMENT FROM CAPITAL END OF TOTAL
OF PERIOD INCOME AND UNREALIZED) INCOME CAPITAL GAINS PERIOD RETURN
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------
MID-CAP GROWTH EQUITY
- ---------------------
INSTITUTIONAL CLASS
12/27/961 through 3/31/977 $10.00 $0.01 $(1.08) -- -- -- $8.93 (10.70)%
SERVICE CLASS
12/27/961 through 3/31/977 $10.00 -- $(1.07) -- -- -- $8.93 (10.70)%
INVESTOR A CLASS
12/27/961 through 3/31/977 $10.00 -- $(1.08) -- -- -- $8.92 (10.80)%3
INVESTOR B CLASS
12/27/961 through 3/31/977 $10.00 $(0.01) $(1.07) -- -- -- $8.92 (10.80)%4
INVESTOR C CLASS
12/27/961 through 3/31/977 $10.00 $(0.01) $(1.07) -- -- -- $8.92 (10.80)%4
- ----------------------
SMALL CAP VALUE EQUITY
- ----------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $15.98 $0.09 $1.15 $(0.11) -- $(2.17) $14.94 8.64%
9/30/96 15.16 0.10 1.70 (0.11) -- (0.87) 15.98 12.64
9/30/95 13.62 0.06 2.17 (0.08) -- (0.61) 15.16 17.43
9/30/94 13.08 0.04 0.77 (0.02) -- (0.25) 13.62 6.28
9/30/93 10.14 0.04 3.02 (0.04) -- (0.08) 13.08 30.36
9/13/921 through 9/30/92 10.00 0.02 0.13 (0.01) -- -- 10.14 1.50
SERVICE CLASS
10/1/96 through 3/31/977 $15.98 $0.07 $1.15 $(0.09) -- $(2.17) $14.94 8.49%
9/30/96 15.15 0.06 1.70 (0.06) -- (0.87) 15.98 12.30
9/30/95 13.59 0.02 2.18 (0.03) -- (0.61) 15.15 17.17
9/30/94 13.08 -- 0.77 (0.01) -- (0.25) 13.59 5.96
7/29/931 through 9/30/93 12.28 -- 0.80 -- -- -- 13.08 6.51
INVESTOR A CLASS
10/1/96 through 3/31/977 $15.97 $0.06 $1.16 $(0.08) -- $(2.17) $14.94 8.48%3
9/30/96 15.14 0.03 1.69 (0.02) -- (0.87) 15.97 12.063
9/30/95 13.58 -- 2.17 -- -- (0.61) 15.14 16.963
9/30/94 13.07 (0.01) 0.77 -- -- (0.25) 13.58 5.933
9/30/93 10.14 0.03 3.02 (0.04) -- (0.08) 13.07 30.363
6/2/921 through 9/30/92 10.06 0.02 0.07 (0.01) -- -- 10.14 0.893
INVESTOR B CLASS
10/1/96 through 3/31/977 $15.80 $0.05 $1.09 $ (0.04) -- $(2.17) $14.73 8.04%4
9/30/96 15.06 (0.04) 1.65 -- -- (0.87) 15.80 11.344
10/3/941 through 9/30/95 13.51 (0.05) 2.21 -- -- (0.61) 15.06 16.954
INVESTOR C CLASS
10/1/961 through 3/31/977 $15.76 $0.02 $1.16 $ (0.04) -- $(2.17) $14.73 8.32%4
- -----------------------
SMALL CAP GROWTH EQUITY
- -----------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $21.94 $0.02 $(4.54) $ (0.03) -- $(1.49) $15.90 (21.99)%
9/30/96 15.06 (0.01) 6.91 (0.02) -- -- 21.94 45.87
9/30/95 10.16 0.02 4.90 (0.02) -- -- 15.06 48.50
9/30/94 10.47 0.03 (0.33) (0.01) -- -- 10.16 (2.89)
9/14/931 through 9/30/93 10.00 -- 0.47 -- -- -- 10.47 4.70
SERVICE CLASS
10/1/96 through 3/31/977 $21.80 $(0.01) $(4.51) -- -- $(1.49) $15.79 (22.10)%
9/30/96 15.02 (0.06) 6.84 -- -- -- 21.80 45.14
9/30/95 10.14 (0.01) 4.89 -- -- -- 15.02 48.13
9/30/94 10.47 0.01 (0.34) -- -- -- 10.14 (3.12)
9/15/931 through 9/30/93 9.96 -- 0.51 -- -- -- 10.47 5.12
INVESTOR A CLASS
10/1/96 through 3/31/977 $21.69 $0.01 $(4.53) -- -- $(1.49) $15.68 (22.22)%3
9/30/96 14.98 (0.06) 6.77 -- -- -- 21.69 44.793
9/30/95 10.12 (0.02) 4.88 -- -- -- 14.98 48.023
9/30/94 10.47 -- (0.35) -- -- -- 10.12 (3.33)3
9/15/931 through 9/30/93 9.96 -- 0.51 -- -- -- 10.47 5.123
INVESTOR B CLASS
10/1/96 through 3/31/977 $21.53 $(0.01) $(4.53) -- -- $(1.49) $15.50 (22.49)%4
1/18/961 through 9/30/96 14.87 (0.07) 6.73 -- -- -- 21.53 38.274
INVESTOR C CLASS
10/1/96 through 3/31/977 $21.53 $(0.03) $(4.51) -- -- $(1.49) $15.50 (22.49)%4
9/6/961 through 9/30/96 19.66 (0.01) 1.88 -- -- -- 21.53 9.514
</TABLE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
<TABLE>
<CAPTION>
RATIO OF NET
NET RATIO OF EXPENSES INVESTMENT INCOME
ASSETS RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS PORTFOLIO AVERAGE
PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING TURNOVER COMMISSION
(000) ASSETS WAIVERS) ASSETS WAIVERS) RATE RATE5
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------
MID-CAP GROWTH EQUITY
- ---------------------
INSTITUTIONAL CLASS
12/27/961 through 3/31/977 $53,332 1.12%2 1.23%2 0.33%2 0.22%2 9% $0.0572
SERVICE CLASS
12/27/961 through 3/31/977 $9,265 1.45%2 1.56%2 (0.10)%2 (0.21)%2 9% $0.0572
INVESTOR A CLASS
12/27/961 through 3/31/977 $872 1.57%2 1.68%2 (0.14)%2 (0.26)%2 9% $0.0572
INVESTOR B CLASS
12/27/961 through 3/31/977 $544 2.20%2 2.31%2 (0.76)%2 (0.87)%2 9% $0.0572
INVESTOR C CLASS
12/27/961 through 3/31/977 $10 2.24%2 2.35%2 (0.81)%2 (0.93)%2 9% $0.0572
- ----------------------
SMALL CAP VALUE EQUITY
- ----------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $234,944 0.86%2 0.88%2 1.30%2 1.28%2 41% $0.0506
9/30/96 214,828 0.85 0.86 0.68 0.67 50 0.0580
9/30/95 168,334 0.75 0.84 0.44 0.35 31 --
9/30/94 168,360 0.73 0.85 0.28 0.16 18 --
9/30/93 128,805 0.83 0.87 0.31 0.27 41 --
9/13/921 through 9/30/92 75,045 0.852 0.892 0.512 0.472 17 --
SERVICE CLASS
10/1/96 through 3/31/977 $88,475 1.16%2 1.18%2 1.01%2 0.99%2 41% $0.0506
9/30/96 80,981 1.15 1.16 0.38 0.37 50 0.0580
9/30/95 61,313 1.02 1.12 0.16 0.07 31 --
9/30/94 45,372 0.98 1.10 0.03 (0.09) 18 --
7/29/931 through 9/30/93 21,689 0.992 1.032 0.122 0.082 41 --
INVESTOR A CLASS
10/1/96 through 3/31/977 $24,094 1.33%2 1.35%2 0.83%2 0.81%2 41% $0.0506
9/30/96 24,605 1.32 1.33 0.20 0.19 50 0.0580
9/30/95 21,563 1.18 1.28 0.00 (0.09) 31 --
9/30/94 16,884 1.13 1.25 (0.11) (0.23) 18 --
9/30/93 9,084 0.94 0.98 0.19 0.15 41 --
6/2/921 through 9/30/92 62 0.852 0.892 0.512 0.472 17 --
INVESTOR B CLASS
10/1/96 through 3/31/977 $3,718 2.07%2 2.08%2 0.16%2 0.15%2 41% $0.0506
9/30/96 2,357 2.04 2.05 (0.50) (0.51) 50 0.0580
10/3/941 through 9/30/95 1,477 1.802 1.892 (0.61)2 (0.70)2 31 --
INVESTOR C CLASS
10/1/961 through 3/31/977 $239 1.98%2 1.99%2 1.03%2 1.01%2 41% $0.0506
- -----------------------
SMALL CAP GROWTH EQUITY
- -----------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $292,275 0.86%2 0.87%2 0.14%2 0.13%2 47% $0.0542
9/30/96 299,563 0.86 0.88 (0.07) (0.09) 89 0.0569
9/30/95 145,915 0.75 0.88 0.22 0.09 74 --
9/30/94 65,612 0.48 1.04 0.45 (0.10) 89 --
9/14/931 through 9/30/93 11,310 0.732 1.422 (0.11)2 (0.80)2 9 --
SERVICE CLASS
10/1/96 through 3/31/977 $131,733 1.16%2 1.17%2 (0.17)%2 (0.18)%2 47% $0.0542
9/30/96 158,901 1.16 1.18 (0.38) (0.40) 89 0.0569
9/30/95 62,604 1.03 1.16 (0.07) (0.20) 74 --
9/30/94 22,648 0.71 1.27 0.21 (0.34) 89 --
9/15/931 through 9/30/93 911 0.992 1.682 (0.34)2 (1.03)2 9 --
INVESTOR A CLASS
10/1/96 through 3/31/977 $34,686 1.33%2 1.32%2 (0.32)%2 (0.33)%2 47% $0.0542
9/30/96 27,954 1.33 1.35 (0.55) (0.57) 89 0.0569
9/30/95 7,348 1.20 1.33 (0.24) (0.36) 74 --
9/30/94 1,620 0.86 1.42 0.07 (0.49) 89 --
9/15/931 through 9/30/93 41 1.132 1.822 (0.48)2 (1.17)2 9 --
INVESTOR B CLASS
10/1/96 through 3/31/977 $15,356 2.05%2 2.06%2 (0.98)%2 (0.99)%2 47% $0.0542
1/18/961 through 9/30/96 6,520 2.062 2.082 (1.34)2 (1.36)2 89 0.0569
INVESTOR C CLASS
10/1/96 through 3/31/977 $4,761 2.02%2 2.03%2 (0.93)%2 (0.94)%2 47% $0.0542
9/6/961 through 9/30/96 329 1.742 1.762 (0.93)2 (0.95)2 89 0.0569
</TABLE>
See accompanying notes to financial statements.
46-47
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET NET GAIN DISTRIBUTIONS NET
ASSET (LOSS) ON DISTRIBUTIONS FROM NET ASSET
VALUE NET INVESTMENTS FROM NET DISTRIBUTIONS REALIZED VALUE
BEGINNING INVESTMENT (BOTH REALIZED INVESTMENT FROM CAPITAL END OF TOTAL
OF PERIOD INCOME AND UNREALIZED) INCOME CAPITAL GAINS PERIOD RETURN
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- --------------------
INTERNATIONAL EQUITY
- --------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $13.43 $ 0.03 $ 0.32 $ (0.28) -- $(0.41) $13.09 2.65%
9/30/96 13.27 0.17 0.84 (0.18) -- (0.67) 13.43 8.01
9/30/95 13.44 0.17 0.13 (0.11) -- (0.36) 13.27 2.46
9/30/94 12.48 0.15 1.17 (0.11) -- (0.25) 13.44 10.71
9/30/93 9.87 0.11 2.61 (0.11) -- -- 12.48 27.72
4/27/921 through 9/30/92 10.00 0.11 (0.17) (0.07) -- -- 9.87 (0.61)
SERVICE CLASS
10/1/96 through 3/31/977 $13.37 $ 0.01 $ 0.31 $ (0.24) -- $(0.41) $13.04 2.42%
9/30/96 13.24 0.19 0.78 (0.17) -- (0.67) 13.37 7.71
9/30/95 13.41 0.11 0.16 (0.08) -- (0.36) 13.24 2.19
9/30/94 12.47 0.14 1.14 (0.09) -- (0.25) 13.41 10.36
7/29/931 through 9/30/93 11.76 0.02 0.69 -- -- -- 12.47 6.03
INVESTOR A CLASS
10/1/96 through 3/31/977 $13.36 $(0.01) $ 0.33 $ (0.22) -- $(0.41) $13.05 2.43%3
9/30/96 13.24 0.14 0.81 (0.16) -- (0.67) 13.36 7.583
9/30/95 13.40 0.11 0.13 (0.04) -- (0.36) 13.24 2.003
9/30/94 12.47 0.12 1.15 (0.09) -- (0.25) 13.40 10.243
9/30/93 9.87 0.12 2.59 (0.11) -- -- 12.47 27.723
6/2/921 through 9/30/92 10.68 0.09 (0.83) (0.07) -- -- 9.87 (6.94)3
INVESTOR B CLASS
10/1/96 through 3/31/977 $13.23 $(0.01) $ 0.28 $ (0.17) -- $(0.41) $12.92 2.10%4
9/30/96 13.20 0.08 0.77 (0.15) -- (0.67) 13.23 6.814
10/3/941 through 9/30/95 13.35 0.05 0.16 -- -- (0.36) 13.20 1.774
INVESTOR C CLASS
12/5/961 through 3/31/977 $13.21 $(0.02) $(0.10) $ (0.17) -- -- $12.92 (0.88)%4
- ------------------------------
INTERNATIONAL EMERGING MARKETS
- ------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $8.76 $(0.02) $ 1.11 $ (0.02) -- -- $9.83 12.44%
9/30/96 8.19 0.08 0.50 -- -- (0.01) 8.76 6.97
9/30/95 10.56 0.08 (2.15) (0.10) (0.01) (0.19) 8.19 (19.72)
6/17/941 through 9/30/94 10.00 0.03 0.53 -- -- -- 10.56 5.60
SERVICE CLASS
10/1/96 through 3/31/977 $8.72 $(0.03) $ 1.10 -- -- -- $9.79 12.27%
9/30/96 8.18 0.04 0.51 -- -- (0.01) 8.72 6.61
9/30/95 10.55 0.06 (2.15) (0.08) (0.01) (0.19) 8.18 (19.91)
6/17/941 through 9/30/94 10.00 0.02 0.53 -- -- -- 10.55 5.50
INVESTOR A CLASS
10/1/96 through 3/31/977 $8.71 $(0.04) $ 1.10 -- -- -- $9.77 12.17%3
9/30/96 8.18 0.02 0.52 -- -- (0.01) 8.71 6.493
9/30/95 10.54 0.03 (2.14) (0.05) (0.01) (0.19) 8.18 (20.12)3
6/17/941 through 9/30/94 10.00 0.02 0.52 -- -- -- 10.54 5.403
INVESTOR B CLASS
10/1/96 through 3/31/977 $8.69 $(0.04) $ 1.06 -- -- -- $9.71 11.74%4
7/2/961 through 9/30/96 8.85 -- (0.16) -- -- -- 8.69 (1.81)4
INVESTOR C CLASS
3/21/971 through 3/31/977 $9.70 -- $0.01 -- -- -- $9.71 0.10%4
- -------------
SELECT EQUITY
- -------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $13.57 $ 0.10 $ 1.51 $ (0.10) -- $(1.21) $13.87 12.29%
9/30/96 11.88 0.21 2.08 (0.21) -- (0.39) 13.57 19.84
9/30/95 9.92 0.22 2.08 (0.22) -- (0.12) 11.88 23.76
9/30/94 9.97 0.22 (0.04) (0.23) -- -- 9.92 1.79
9/13/931 through 9/30/93 10.00 0.01 (0.04) -- -- -- 9.97 (0.30)
SERVICE CLASS
10/1/96 through 3/31/977 $13.56 $ 0.07 $ 1.52 $ (0.08) -- $(1.21) $13.86 12.14%
9/30/96 11.88 0.17 2.07 (0.17) -- (0.39) 13.56 19.43
9/30/95 9.92 0.22 2.05 (0.19) -- (0.12) 11.88 23.43
9/30/94 9.97 0.19 (0.04) (0.20) -- -- 9.92 1.55
9/15/931 through 9/30/93 10.00 -- (0.03) -- -- -- 9.97 (0.30)
INVESTOR A CLASS
10/1/96 through 3/31/977 $13.56 $ 0.06 $ 1.53 $ (0.07) -- $(1.21) $13.87 12.15%3
9/30/96 11.88 0.15 2.07 (0.15) -- (0.39) 13.56 19.233
9/30/95 9.92 0.20 2.06 (0.18) -- (0.12) 11.88 23.293
10/13/931 through 9/30/94 9.96 0.18 (0.03) (0.19) -- -- 9.92 1.543
</TABLE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
<TABLE>
<CAPTION>
RATIO OF NET
NET RATIO OF EXPENSES INVESTMENT INCOME
ASSETS RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS PORTFOLIO AVERAGE
PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING TURNOVER COMMISSION
(000) ASSETS WAIVERS) ASSETS WAIVERS) RATE RATE5
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------
INTERNATIONAL EQUITY
- --------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $418,000 1.06%2 1.17%2 0.29%2 0.18%2 29% $0.0178
9/30/96 388,588 1.06 1.17 0.90 0.79 70 0.0158
9/30/95 312,588 0.97 1.14 1.42 1.24 105 --
9/30/94 284,905 0.95 1.14 1.27 1.08 37 --
9/30/93 131,052 1.10 1.16 1.17 1.11 31 --
4/27/921 through 9/30/92 60,357 1.202 1.212 2.592 2.582 15 --
SERVICE CLASS
10/1/96 through 3/31/977 $172,773 1.36%2 1.47%2 (0.01)%2 (0.12)%2 29% $0.0178
9/30/96 161,321 1.36 1.47 0.71 0.60 70 0.0158
9/30/95 106,045 1.25 1.42 1.16 0.98 105 --
9/30/94 75,174 1.20 1.39 1.09 0.90 37 --
7/29/931 through 9/30/93 11,985 1.182 1.242 1.012 0.952 31 --
INVESTOR A CLASS
10/1/96 through 3/31/977 $20,417 1.53%2 1.64%2 (0.16)%2 (0.27)%2 29% $0.0178
9/30/96 19,842 1.53 1.64 0.45 0.34 70 0.0158
9/30/95 17,721 1.40 1.58 0.97 0.80 105 --
9/30/94 14,433 1.35 1.54 0.96 0.77 37 --
9/30/93 3,669 1.25 1.31 1.27 1.21 31 --
6/2/921 through 9/30/92 58 1.202 1.212 2.592 2.582 16 --
INVESTOR B CLASS
10/1/96 through 3/31/977 $3,655 2.27%2 2.38%2 (0.90)%2 (1.01)%2 29% $0.0178
9/30/96 2,692 2.23 2.34 (0.18) (0.29) 70 0.0158
10/3/941 through 9/30/95 1,071 2.062 2.232 0.592 0.412 105 --
INVESTOR C CLASS
12/5/961 through 3/31/977 $3 2.23%2 2.34%2 (0.90)%2 (1.01)%2 29% $0.0178
- ------------------------------
INTERNATIONAL EMERGING MARKETS
- ------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $100,131 1.78%2 1.86%2 (0.42)%2 (0.50)%2 21% $0.0013
9/30/96 68,664 1.78 1.88 0.96 0.87 44 0.0018
9/30/95 29,319 1.78 2.02 1.90 1.66 75 --
6/17/941 through 9/30/94 2,511 1.752 2.732 1.192 0.212 4 --
SERVICE CLASS
10/1/96 through 3/31/977 $53,756 2.08%2 2.16%2 (0.72)%2 (0.80)%2 21% $0.0013
9/30/96 37,987 2.08 2.18 0.70 0.60 44 0.0018
9/30/95 15,020 2.06 2.30 1.72 1.48 75 --
6/17/941 through 9/30/94 3,505 2.002 2.982 1.102 0.122 4 --
INVESTOR A CLASS
10/1/96 through 3/31/977 $3,759 2.25%2 2.33%2 (0.91)%2 (0.99)%2 21% $0.0013
9/30/96 2,996 2.26 2.35 0.45 0.35 44 0.0018
9/30/95 2,563 2.20 2.44 1.54 1.30 75 --
6/17/941 through 9/30/94 2,857 2.152 3.132 0.742 (0.24)2 4 --
INVESTOR B CLASS
10/1/96 through 3/31/977 $667 2.97%2 3.05%2 (1.50)%2 (1.58)%2 21% $0.0013
7/2/961 through 9/30/96 216 2.902 3.002 0.172 0.072 44 0.0018
INVESTOR C CLASS
3/21/971 through 3/31/977 $22 1.98%2 2.06%2 0.02%2 (0.06)%2 21% $0.0013
- -------------
SELECT EQUITY
- -------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $325,257 0.75%2 0.86%2 1.36%2 1.25%2 15% $0.0527
9/30/96 274,434 0.74 0.87 1.70 1.58 55 0.0487
9/30/95 238,813 0.67 0.85 2.35 2.17 51 --
9/30/94 48,123 0.65 0.93 2.11 1.82 88 --
9/13/931 through 9/30/93 69,268 0.652 0.872 2.172 1.952 2 --
SERVICE CLASS
10/1/96 through 3/31/977 $133,241 1.05%2 1.16%2 1.06%2 0.95%2 15% $0.0527
9/30/96 113,777 1.04 1.17 1.41 1.28 55 0.0487
9/30/95 83,705 0.95 1.13 2.10 1.91 51 --
9/30/94 49,293 0.90 1.18 1.96 1.68 88 --
9/15/931 through 9/30/93 704 0.902 1.122 1.922 1.702 2 --
INVESTOR A CLASS
10/1/96 through 3/31/977 $9,924 1.22%2 1.33%2 0.90%2 0.79%2 15% $0.0527
9/30/96 6,228 1.21 1.34 1.24 1.11 55 0.0487
9/30/95 3,808 1.12 1.30 1.91 1.73 51 --
10/13/931 through 9/30/94 601 1.052 1.342 1.892 1.602 88 --
</TABLE>
See accompanying notes to financial statements.
48-49
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
COMPASS CAPITAL FUNDS [LOGO OMITTED]
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET NET GAIN DISTRIBUTIONS NET
ASSET (LOSS) ON DISTRIBUTIONS FROM NET ASSET
VALUE NET INVESTMENTS FROM NET DISTRIBUTIONS REALIZED VALUE
BEGINNING INVESTMENT (BOTH REALIZED INVESTMENT FROM CAPITAL END OF TOTAL
OF PERIOD INCOME AND UNREALIZED) INCOME CAPITAL GAINS PERIOD RETURN
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTOR B CLASS
10/1/96 through 3/31/977 $13.54 $0.03 $1.49 $ (0.04) -- $(1.21) $13.81 11.60%4
3/27/961 through 9/30/96 12.83 0.04 0.73 (0.06) -- -- 13.54 6.584
INVESTOR C CLASS
10/1/96 through 3/31/977 $13.54 $0.01 $1.51 $ (0.04) -- $(1.21) $13.81 11.60%4
9/27/961 through 9/30/96 13.52 -- 0.02 -- -- -- 13.54 0.154
- ------------
INDEX EQUITY
- ------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $13.97 $0.13 $1.35 $ (0.13) -- $(0.68) $14.64 11.03%
9/30/96 13.58 0.30 2.13 (0.34) -- (1.70) 13.97 19.82
9/30/95 10.93 0.38 2.73 (0.34) -- (0.12) 13.58 29.30
9/30/94 11.02 0.31 0.03 (0.32) -- (0.11) 10.93 3.07
9/30/93 10.06 0.27 0.97 (0.28) -- -- 11.02 12.40
4/20/921 through 9/30/92 10.00 0.13 0.03 (0.10) -- -- 10.06 1.62
SERVICE CLASS
10/1/96 through 3/31/977 $13.97 $0.11 $1.34 $ (0.10) -- $(0.68) $14.64 10.87%
9/30/96 13.58 0.29 2.10 (0.30) -- (1.70) 13.97 19.45
9/30/95 10.93 0.35 2.73 (0.31) -- (0.12) 13.58 28.99
9/30/94 11.02 0.29 0.02 (0.29) -- (0.11) 10.93 2.78
7/29/931 through 9/30/93 10.76 0.05 0.29 (0.08) -- -- 11.02 3.16
INVESTOR A CLASS
10/1/96 through 3/31/977 $13.96 $0.10 $1.35 $ (0.09) -- $(0.68) $14.64 10.86%3
9/30/96 13.58 0.27 2.09 (0.28) -- (1.70) 13.96 19.313
9/30/95 10.93 0.34 2.73 (0.30) -- (0.12) 13.58 28.773
9/30/94 11.02 0.25 0.04 (0.27) -- (0.11) 10.93 2.663
9/30/93 10.06 0.27 0.96 (0.27) -- -- 11.02 12.333
6/2/921 through 9/30/92 10.07 0.10 (0.01) (0.10) -- -- 10.06 0.913
INVESTOR B CLASS
10/1/96 through 3/31/977 $13.93 $0.07 $1.32 $ (0.06) -- $(0.68) $14.58 10.44%4
2/7/961 through 9/30/96 13.20 0.08 0.77 (0.12) -- -- 13.93 6.504
INVESTOR C CLASS
10/1/96 through 3/31/977 $13.93 $0.08 $1.31 $ (0.06) -- $(0.68) $14.58 10.44%4
8/14/961 through 9/30/96 13.47 0.02 0.50 (0.06) -- -- 13.93 3.904
- --------
BALANCED
- --------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $15.10 $0.25 $0.97 $ (0.24) -- $(0.52) $15.56 8.10%
9/30/96 13.73 0.46 1.49 (0.45) -- (0.13) 15.10 14.43
9/30/95 11.98 0.46 1.90 (0.47) -- (0.14) 13.73 20.32
9/30/94 12.42 0.38 (0.39) (0.37) -- (0.06) 11.98 (0.11)
9/30/93 11.53 0.30 1.15 (0.30) -- (0.26) 12.42 12.86
5/1/921 through 9/30/92 11.01 0.17 0.51 (0.16) -- -- 11.53 6.23
SERVICE CLASS
10/1/96 through 3/31/977 $15.09 $0.21 $0.98 $ (0.21) -- $(0.52) $15.55 7.94%
9/30/96 13.72 0.42 1.49 (0.41) -- (0.13) 15.09 14.11
9/30/95 11.98 0.44 1.88 (0.44) -- (0.14) 13.72 19.94
9/30/94 12.42 0.34 (0.38) (0.34) -- (0.06) 11.98 (0.36)
7/29/931 through 9/30/93 12.05 0.06 0.38 (0.07) -- -- 12.42 3.66
INVESTOR A CLASS
10/1/96 through 3/31/977 $15.10 $0.20 $0.98 $ (0.20) -- $(0.52) $15.56 7.89%3
9/30/96 13.73 0.40 1.49 (0.39) -- (0.13) 15.10 13.983
9/30/95 11.98 0.43 1.88 (0.42) -- (0.14) 13.73 19.863
9/30/94 12.42 0.32 (0.38) (0.32) -- (0.06) 11.98 (0.50)3
9/30/93 11.53 0.30 1.14 (0.29) -- (0.26) 12.42 12.803
9/30/92 10.82 0.34 1.22 (0.39) -- (0.46) 11.53 15.173
INVESTOR B CLASS
10/1/96 through 3/31/977 $15.04 $0.14 $0.98 $ (0.15) -- $(0.52) $15.49 7.49%4
9/30/96 13.69 0.31 1.47 (0.30) -- (0.13) 15.04 13.144
10/3/941 through 9/30/95 11.95 0.33 1.93 (0.38) -- (0.14) 13.69 19.384
INVESTOR C CLASS
12/20/961 through 3/31/977 $15.62 $0.12 $(0.10) $ (0.15) -- -- $15.49 0.11%4
</TABLE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
<TABLE>
<CAPTION>
RATIO OF NET
NET RATIO OF EXPENSES INVESTMENT INCOME
ASSETS RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS PORTFOLIO AVERAGE
PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING TURNOVER COMMISSION
(000) ASSETS WAIVERS) ASSETS WAIVERS) RATE RATE5
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTOR B CLASS
10/1/96 through 3/31/977 $4,668 1.93%2 2.04%2 0.19%2 0.08%2 15% $0.0527
3/27/961 through 9/30/96 1,196 1.922 2.042 0.592 0.462 55 0.0487
INVESTOR C CLASS
10/1/96 through 3/31/977 $6 1.81%2 1.92%2 0.02%2 (0.09)%2 15% $0.0527
9/27/961 through 9/30/96 50 0.02 0.02 0.02 0.02 55 0.0487
- ------------
INDEX EQUITY
- ------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $145,315 $0.182 $0.392 $1.802 $1.592 * *
9/30/96 127,076 0.18 0.50(DOUBLE DAGGER) 2.29 1.98 0.186* 0.03196*
9/30/95 109,433 0.17 0.50 2.92 2.59 0.18 --
9/30/94 147,746 0.15 0.52 2.72 2.35 17 --
9/30/93 186,163 0.40 0.52 2.46 2.34 8 --
4/20/921 through 9/30/92 175,888 0.452 0.642 2.852 2.662 23 --
SERVICE CLASS
10/1/96 through 3/31/977 $136,204 $0.482 $0.692 $1.522 $1.312 * *
9/30/96 103,080 0.48 0.80 1.98 1.67 0.186* 0.03196*
9/30/95 61,536 0.45 0.79 2.62 2.28 18 --
9/30/94 27,376 0.40 0.77 2.49 2.12 17 --
7/29/931 through 9/30/93 12,441 0.412 0.532 3.042 2.922 8 --
INVESTOR A CLASS
10/1/96 through 3/31/977 $17,740 $0.652 $0.862 $1.342 $1.132 * *
9/30/96 12,752 0.65 0.97(DOUBLE DAGGER) 1.81 1.49 186* 0.03196*
9/30/95 6,501 0.61 0.95 2.44 2.10 18 --
9/30/94 2,632 0.55 0.92 2.35 1.98 17 --
9/30/93 1,263 0.49 0.61 2.48 2.36 8 --
6/2/921 through 9/30/92 56 0.452 0.642 2.852 2.662 23 --
INVESTOR B CLASS
10/1/96 through 3/31/977 $14,584 $1.372 $1.582 $0.612 $0.402 * *
2/7/961 through 9/30/96 2,904 1.382 1.602 0.932 0.712 186* 0.03196*
INVESTOR C CLASS
10/1/96 through 3/31/977 $8,411 $1.372 $1.582 $0.632 $0.422 * *
8/14/961 through 9/30/96 432 1.252 1.432 0.712 0.532 186* 0.03196*
- --------
BALANCED
- --------
INSTITUTIONAL CLASS
10/1/96 through 3/31/977 $30,536 0.80%2 0.89%2 2.97%2 2.88%2 89% $0.0565
9/30/96 37,567 0.79 0.90 3.16 3.06 275 0.0599
9/30/95 24,525 0.67 0.88 3.78 3.56 154 --
9/30/94 17,610 0.65 0.91 3.16 2.89 54 --
9/30/93 12,928 0.80 0.98 2.89 2.71 32 --
5/1/921 through 9/30/92 2,501 0.952 1.512 3.282 2.722 36 --
SERVICE CLASS
10/1/96 through 3/31/977 $149,365 1.10%2 1.19%2 2.66%2 2.57%2 89% $0.0565
9/30/96 134,121 1.09 1.20 2.87 2.76 275 0.0599
9/30/95 85,668 0.94 1.16 3.49 3.28 154 --
9/30/94 66,024 0.90 1.16 2.96 2.70 54 --
7/29/931 through 9/30/93 15,842 0.932 1.112 2.752 2.572 32 --
INVESTOR A CLASS
10/1/96 through 3/31/977 $75,752 1.20%2 1.29%2 2.56%2 2.47%2 89% $0.0565
9/30/96 71,899 1.19 1.30 2.75 2.65 275 0.0599
9/30/95 67,892 1.07 1.28 3.38 3.16 154 --
9/30/94 62,307 1.05 1.31 2.77 2.51 54 --
9/30/93 39,529 0.91 1.09 2.79 2.61 32 --
9/30/92 8,481 0.95 1.51 3.28 2.72 36 --
INVESTOR B CLASS
10/1/96 through 3/31/977 $12,333 2.01%2 2.10%2 1.76%2 1.67%2 89% $0.0565
9/30/96 7,333 1.98 2.09 1.99 1.88 275 0.0599
10/3/941 through 9/30/95 3,124 1.722 1.942 2.712 2.492 154 --
INVESTOR C CLASS
12/20/961 through 3/31/977 $26 1.86%2 1.95%2 2.05%2 1.96%2 89% $0.0565
<FN>
1 Commencement of operations of share class.
2 Annualized.
3 Sales load not reflected in total return.
4 Contingent deferred sales load not reflected in total return.
5 Computed by dividing the total amount of commission paid by the total number
of shares purchased and sold during the period.
6 For the period 10/1/95 through 5/31/96.
7 Unaudited.
* See accompanying footnotes to The DFA Investment Trust Company.
(DOUBLE DAGGER) Including expenses allocated from The U.S. Large Company Series
of The DFA Investment Trust Company of 0.08%.
</FN>
</TABLE>
See accompanying notes to financial statements.
50-51
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Compass Capital FundsSM ("the Fund") (formerly The PNC(R) Fund) was
organized on December 22, 1988 as a Massachusetts business trust and is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company. The Fund currently has 30 publicly-offered
portfolios, eleven of which are included in these financial statements (the
"Portfolios"). Each Portfolio is authorized to issue an unlimited number of
shares with a par value of $0.001. Portfolios of the Fund offer as many as five
classes of shares. Shares of all classes of a Portfolio represent equal pro rata
interests in such Portfolio, except that each class bears different expenses
which reflect the difference in the range of services provided to them. The
following table provides a list of the Portfolios included in this report along
with a summary of their respective class-specific fee arrangements as provided
under the Fund's Amended and Restated Distribution and Service Plan (the
"Plan"). Fees are expressed as a percentage of average daily net asset values of
the respective classes.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio Share Classes
- ---------------------------------------------------------------------------------------------------------------------------------
Institutional Service Investor A Investor B Investor C
- ---------------------------------------------------------------------------------------------------------------------------------
Contractual Actual Contractual Actual Contractual Actual Contractual Actual Contractual Actual
Fees Fees (4) Fees (1) Fees (4) Fees (2) Fees (4) Fees (3) Fees (4) Fees (3) Fees (4)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Value Equity None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
(formerly Value Equity)
- ---------------------------------------------------------------------------------------------------------------------------------
Large Cap Growth Equity None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
(formerly Growth Equity)
- ---------------------------------------------------------------------------------------------------------------------------------
Mid-Cap Value Equity None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
- ---------------------------------------------------------------------------------------------------------------------------------
Mid-Cap Growth Equity None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
- ---------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Equity None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
- ---------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Equity None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
- ---------------------------------------------------------------------------------------------------------------------------------
International Equity None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
- ---------------------------------------------------------------------------------------------------------------------------------
International Emerging
Markets None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
- ---------------------------------------------------------------------------------------------------------------------------------
Select Equity None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
- ---------------------------------------------------------------------------------------------------------------------------------
Index Equity None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
- ---------------------------------------------------------------------------------------------------------------------------------
Balanced None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.15% 1.15% 1.15%
- ---------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) -- the maximum annual contractual fees are comprised of a .15% service fee
and .15% shareholder processing fee.
(2) -- the maximum annual contractual fees are comprised of a .10% distribution
fee, .25% service fee and .15% shareholder processing fee.
(3) -- the maximum annual contractual fees are comprised of a .75% distribution
fee, .25% service fee and .15% shareholder processing fee.
(4) -- The actual fees are as of March 31, 1997.
</FN>
</TABLE>
In addition, Institutional and Service shares bear a Transfer Agent fee at
an annual rate not to exceed .03% and Investor A, Investor B and Investor C
shares bear a Transfer Agent fee at an annual rate not to exceed .10% of the
average daily net asset of such respective classes.
The Index Equity Portfolio invests solely in The U.S. Large Company Series
of The DFA Investment Trust Company. The financial statements of which are
included elsewhere in this report and should be read in conjunction with the
financial statements of Index Equity Portfolio.
(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires the use of management estimates. Actual results could differ from these
estimates.
SECURITY VALUATION -- Portfolio securities for which market quotations are
readily available are valued at market value, which is currently determined
using the last reported sales price. If no sales are reported, as in the case of
some securities traded over-the-counter, portfolio securities are valued at the
mean between the last reported bid and asked prices. Corporate bonds are valued
on the basis of quotations from bond dealers, market transactions in comparable
securities and various relationships between securities in determining value.
Short-term obligations with maturities of 60 days or less are valued at
amortized cost which approximates market value. Discounts and premiums on debt
securities are amortized for book and tax purposes using the effective
yield-to-maturity method over the term of the instrument.
52
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
The Index Equity Portfolio's investment reflects its proportionate interest
in the net assets of The U.S. Large Company Series of The DFA Investment Trust
Company.
DIVIDENDS TO SHAREHOLDERS -- Dividends from net investment income are
declared and paid quarterly for the Portfolios. Net realized capital gains, if
any, will be distributed at least annually. The character of distributions made
during the year from net investment income or net realized gains may differ from
their ultimate characterization for federal income tax purposes due to
differences between generally accepted accounting principles and tax accounting
principles related to the character of income and expense recognition.
FEDERAL TAXES -- No provision is made for federal taxes as it is the Fund's
intention to have each Portfolio continue to qualify as a regulated investment
company and to make the requisite distributions to its shareholders which will
be sufficient to relieve it from federal income and excise taxes.
FOREIGN CURRENCY TRANSLATION -- The books and records of the International
Equity Portfolio and International Emerging Markets Portfolio are maintained in
U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the
following basis:
(I) market value of nvestment securities, assets and liabilities at the
current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at the
relevant rates of exchange prevailing on the respective dates of such
transactions. It is not practical to isolate that portion of both
realized and unrealized gains and losses on investments in the
statement of operations that result from fluctuations in foreign currency
exchange rates. The Portfolios report forward foreign currency contracts
and foreign currency related transactions as components of realized gains
for financial reporting purposes, whereas such components are treated as
ordinary income for federal income tax purposes.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
federal income tax purposes. Interest income is recorded on the accrual basis.
Dividends are recorded on the ex-dividend date. Expenses not directly
attributable to a specific Portfolio or class are allocated among all of the
Portfolios or classes of the Fund based on their relative net assets.
REPURCHASE AGREEMENTS -- Money market instruments may be purchased from
banks and non-bank dealers subject to the seller's agreement to repurchase them
at an agreed upon date and price. Collateral for repurchase agreements may have
longer maturities than the maximum permissible remaining maturity of portfolio
investments. The seller will be required on a daily basis to maintain the value
of the securities subject to the agreement at not less than the repurchase
price. The agreements are conditioned upon the collateral being deposited under
the Federal Reserve book-entry system or held in a separate account by the
Fund's custodian or an authorized securities depository.
ORGANIZATION COSTS -- Costs incurred by each Portfolio in connection with
its organization, registration and initial public offering have been deferred
and are being amortized using the straight-line method over a five-year period
beginning on the date on which each Portfolio commenced its investment
activities.
FUTURES TRANSACTIONS -- Certain Portfolios may enter into futures contracts
subject to certain limitations. Upon entering into a futures contract, the
Portfolio is required to deposit cash or pledge U.S. Government securities of an
initial margin. Subsequent payments, which are dependent on the daily
fluctuations in the value of the underlying security or securities, are made or
received by the Portfolio each day (daily variation margin) and are recorded as
unrealized gains or losses until the contracts are closed. When the contracts
are closed, the Portfolio records a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction and
the Portfolio's basis in the contracts. Risks of entering into futures contracts
include the possibility that there will not be a perfect price correlation
between the futures contracts and the underlying securities. Second, it is
possible that a lack of liquidity for futures contracts could exist in the
secondary market, resulting in an inability to close a futures position prior to
its maturity date. Third, the purchase of a futures contract involves the risk
that a Portfolio could lose more than the original margin deposit required to
initiate a futures transaction.
FORWARD FOREIGN CURRENCY CONTRACTS -- International Equity Portfolio may
enter into forward currency contracts to hedge against adverse changes in the
relationship of the U.S. dollar to foreign currencies. At March 31, 1997, the
Portfolio had not entered into any forward currency contracts.
Risks may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of their contracts and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar.
53
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SECURITIES LENDING -- Loans of securities are required at all times to be
secured by collateral at least equal to 102% of the market value of the
securities on loan. However, in the event of default or bankruptcy by the other
party to the agreement, realization and/or retention of the collateral may be
subject to legal proceedings. The market value of securities on loan to brokers
and the value of collateral held by the Fund with respect to such loans
(including rights to draw on letters of credit) at March 31, 1997, is as
follows:
Market Value Value of
of Securities Collateral
on Loan Received
-------------- --------------
Large Cap Value Equity Portfolio ........ $121,413,630 $127,955,387
Large Cap Growth Equity Portfolio ....... 82,982,968 91,699,470
Small Cap Value Equity Portfolio ........ 14,585,975 14,947,179
Small Cap Growth Equity Portfolio ....... 62,194,772 70,421,497
International Emerging Markets
Portfolio ............................ 4,657,553 4,862,400
Select Equity Portfolio ................. 56,795,558 59,486,460
Balanced Portfolio ...................... 13,331,099 14,057,860
OTHER -- Securities denominated in currencies other than U.S. dollars are
subject to changes in value due to fluctuations in exchange rates.
Some countries in which the Portfolios invest require governmental approval
for the repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. In addition, if there is a deterioration in a
country's balance of payments or for other reasons, a country may impose
temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially
smaller, less liquid and more volatile than the major securities markets in the
United States. Consequently, acquisition and disposition of securities by the
Portfolios may be inhibited. In addition, a significant proportion of the
aggregate market value of equity securities listed on the major securities
exchanges in emerging markets are held by a smaller number of investors. This
may limit the number of shares available for acquisition or disposition by the
Fund.
The Index Equity Portfolio accrues its respective share of income net of
expenses daily on their investment in The U.S. Large Company Series of The DFA
Investment Trust Company, which is treated as a partnership for federal income
tax purposes. All of the net investment income and realized and unrealized gains
and losses from the security transactions of the Master Fund is allocated pro
rata at the time of such determination.
(B) TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to an Investment Advisory Agreement, PNC Asset Management Group,
Inc. ("PAMG"), a wholly-owned subsidiary of PNC Bank, National Association ("PNC
Bank"), serves as investment adviser for each of the Fund's Portfolios, except
for the Index Equity Portfolio. PNC Equity Advisors Company ("PEAC"), a
wholly-owned subsidiary of PAMG, serves as the sub-adviser for the Large Cap
Growth Equity, Mid-Cap Growth Equity and Small Cap Growth Equity Portfolios.
Provident Capital Management, Inc. ("PCM") serves as the sub-adviser for the
Large Cap Value Equity, Mid-Cap Value Equity, Small Cap Value Equity and Select
Equity Portfolios. CastleInternational Asset Management Limited
("CastleInternational"), a wholly-owned subsidiary of PAMG, serves as the
sub-adviser for the International Equity and International Emerging Markets
Portfolios. PCM and BlackRock Financial Management, Inc. ("BlackRock"), a
wholly-owned subsidiary of PAMG, serve as sub-advisers for the Balanced
Portfolio. PNC Bank, PAMG, PEAC, CastleInternational, PCM and BlackRock are
indirect wholly-owned subsidiaries of PNC Bank Corp.
For their advisory services, PAMG is entitled to receive fees at the
following annual rates, computed daily and payable monthly, based on each
Portfolio's average daily net assets:
LARGE CAP VALUE EQUITY, LARGE CAP GROWTH EQUITY, SMALL CAP VALUE EQUITY,
SMALL CAP GROWTH EQUITY, SELECT EQUITY, AND BALANCED PORTFOLIOS -- .55% of the
first $1 billion, .50% of the next $1 billion, .475% of the next $1 billion, and
.45% of net assets in excess of $3 billion.
MID-CAP VALUE EQUITY AND MID-CAP GROWTH EQUITY-- .80% of the first $1
billion, .70% of the next $1 billion, .675 of the next $1 billion and .625% of
next assets in excess of $3 billion.
INTERNATIONAL EQUITY PORTFOLIO -- .75% of its first $1 billion, .70% of the
next $1 billion, .675% of the next $1 billion and .65% of net assets in excess
of $3 billion.
54
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
INTERNATIONAL EMERGING MARKETS PORTFOLIO-- 1.25% of its first $1 billion,
1.20% of the next $1 billion, 1.155% of the next $1 billion, and 1.10% of net
assets in excess of $3 billion.
PNC Institutional Management Corporation ("PIMC") and PEAC served as
investment adviser and sub-adviser, respectively, to the Index Equity Portfolio
until its June 2, 1996 conversion to a feeder portfolio of the U.S. Large
Company Series of The DFA Investment Trust Company. Under the previous advisory
arrangements, PIMC was entitled to receive fees, computed daily and payable
monthly, at the annual rate of .20% of the Portfolio's average daily net assets.
PIMC is a wholly-owned subsidiary of PAMG.
PAMG may, at its discretion, waive all or any portion of its advisory fees
for any Portfolio. For the period ended March 31, 1997, advisory fees and
waivers for each Portfolio were as follows:
Gross Net
Advisory Fee Waiver Advisory Fee
------------ --------- ------------
Large Cap Value Equity Portfolio .... $3,391,682 $314,237 $3,077,445
Large Cap Growth Equity Portfolio ... 1,928,805 175,346 1,753,459
Mid-Cap Value Equity Portfolio ...... 109,315 4,043 105,272
Mid-Cap Growth Equity Portfolio ..... 107,853 4,087 103,766
Small Cap Value Equity Portfolio .... 944,709 -- 944,709
Small Cap Growth Equity Portfolio ... 1,435,970 21,338 1,414,632
International Equity Portfolio ...... 2,220,948 233,122 1,987,826
International Emerging Markets
Portfolio ........................ 807,752 53,470 754,282
Select Equity Portfolio ............. 1,245,376 113,216 1,132,160
Balanced Portfolio .................. 754,881 68,626 686,255
PAMG pays PEAC, PCM, CastleInternational and BlackRock fees for their
sub-advisory services.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank Corp.,
Compass Capital Group, Inc. ("CCG"), an indirect wholly-owned subsidiary of PNC
Bank Corp., and Compass Distributors, Inc. ("CDI") act as co-administrators for
the Fund. The combined administration fee is computed daily and payable monthly,
based on a percentage of the average daily net assets of each Portfolio, at the
following annual rates: .23% of the first $500 million, .21% of the next $500
million, .19% of the next $1 billion and .18% of average daily net assets in
excess of $2 billion.
PFPC, CCG and CDI may, at their discretion, waive all or any portion of
their administration fees for any Portfolio. For the period ended March 31,
1997, administration fees and waivers for each Portfolio were as follows:
Gross Net
Administration Administration
Fee Waiver Fee
-------------- --------- --------------
Large Cap Value Equity Portfolio .... $1,343,689 $143,372 $1,200,317
Large Cap Growth Equity Portfolio ... 786,317 190,253 596,064
Mid-Cap Value Equity Portfolio ...... 31,563 13,719 17,844
Mid-Cap Growth Equity Portfolio ..... 31,144 11,045 20,099
Small Cap Value Equity Portfolio .... 395,060 29,690 365,370
Small Cap Growth Equity Portfolio ... 600,497 -- 600,497
International Equity Portfolio ...... 671,729 80,980 590,749
International Emerging Markets
Portfolio ........................ 148,626 313 148,313
Select Equity Portfolio ............. 520,684 140,359 380,325
Index Equity Portfolio .............. 333,041 305,596 27,445
Balanced Portfolio .................. 315,677 52,688 262,989
In addition, PNC Bank serves as custodian for each of the Fund's
Portfolios. PFPC serves as transfer and dividend disbursing agent.
55
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(C) PURCHASES AND SALES OF SECURITIES
For the period ended March 31, 1997, purchases and sales of securities,
other than short-term and government securities, were as follows:
Purchases Sales
------------ ------------
Large Cap Value Equity Portfolio .......... $270,593,571 $365,642,182
Large Cap Growth Equity Portfolio ......... 229,944,489 278,889,721
Mid-Cap Value Equity Portfolio ............ 68,923,413 3,205,566
Mid-Cap Growth Equity Portfolio ........... 63,563,515 3,634,597
Small Cap Value Equity Portfolio .......... 115,737,560 107,035,125
Small Cap Growth Equity Portfolio ......... 547,680,261 203,019,320
International Equity Portfolio ............ 201,400,256 163,608,702
International Emerging Markets
Portfolio ............................... 52,431,543 22,900,844
Select Equity Portfolio ................... 104,295,618 67,322,969
Balanced Portfolio ........................ 102,007,230 91,672,103
For the period ended March 31, 1997, purchases and sales of government
securities were as follows:
Purchases Sales
------------ ------------
Large Cap Growth Equity Portfolio ......... $ 1,541,085 $ 585,447
Mid-Cap Growth Equity Portfolio ........... 1,111,360 --
Small Cap Growth Equity Portfolio ......... 468,203,311 200,789
Select Equity Portfolio ................... 1,309,227 67,322,969
Balanced Portfolio ........................ 97,773,490 107,130,486
56
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
(D) CAPITAL SHARES
Transactions in capital shares for each period were as follows:
<TABLE>
<CAPTION>
Large Cap Value Equity Portfolio
---------------------------------------------------------------------
For the Six Months Ended For the Year Ended
3/31/97 9/30/96
------------------------------- -------------------------------
(Unaudited)
Shares Value Shares Value
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class .................. 1,782,817 $ 26,310,349 19,259,923 $ 287,107,525
Service Class ........................ 2,559,435 37,482,901 29,347,389 425,296,069
Investor A Class ..................... 667,342 9,792,504 653,789 9,550,039
Investor B Class ..................... 433,323 6,386,223 206,871 3,063,719
Investor C Class ..................... 33,808 493,560 13,343 200,850
Shares issued in merger:
Institutional Class .................. -- -- -- --
Service Class ........................ -- -- 25,439,684 344,453,317
Investor A Class ..................... -- -- -- --
Investor B Class ..................... -- -- -- --
Investor C Class ..................... -- -- -- --
Shares issued in reinvestment of
dividends:
Institutional Class .................. 8,461,321 117,061,199 3,343,988 46,434,785
Service Class ........................ 4,729,413 65,371,174 1,181,096 16,510,986
Investor A Class ..................... 337,395 4,674,920 115,817 1,605,978
Investor B Class ..................... 51,334 709,141 886 13,424
Investor C Class ..................... 54 803 53 811
Shares redeemed:
Institutional Class .................. (11,232,428) (163,417,128) (11,497,933) (169,845,985)
Service Class ........................ (2,551,869) (37,580,715) (38,443,494) (561,055,997)
Investor A Class ..................... (198,681) (2,916,369) (277,767) (4,045,015)
Investor B Class ..................... (27,921) (418,787) (1,966) (28,635)
Investor C Class ..................... (1,861) (30,023) -- --
----------- ------------- ----------- -------------
Net increase .............................. 5,043,482 $ 63,919,752 29,341,679 $ 399,261,871
=========== ============= =========== =============
</TABLE>
57
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
Large Cap Growth Equity Portfolio
----------------------------------------------------------------------
For the Six Months Ended For the Year Ended
3/31/97 9/30/96
------------------------------- --------------------------------
(Unaudited)
Shares Value Shares Value
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class .................. 1,506,346 $ 22,857,024 19,572,888 $ 273,185,487
Service Class ........................ 1,757,771 26,835,837 5,064,533 69,149,584
Investor A Class ..................... 249,816 3,826,378 498,827 6,895,508
Investor B Class ..................... 142,123 2,155,252 161,652 2,277,756
Investor C Class ..................... 1,028 15,610 -- --
Shares issued in merger:
Institutional Class .................. -- -- -- --
Service Class ........................ -- -- 12,988,182 162,741,919
Investor A Class ..................... -- -- -- --
Investor B Class ..................... -- -- -- --
Investor C Class ..................... -- -- -- --
Shares issued in reinvestment of
dividends:
Institutional Class .................. 1,659,660 24,596,858 607,854 7,878,559
Service Class ........................ 530,578 7,853,001 166,800 2,161,020
Investor A Class ..................... 58,304 862,280 23,314 299,818
Investor B Class ..................... 9,660 141,908 -- --
Investor C Class ..................... -- -- -- --
Shares redeemed:
Institutional Class .................. (6,671,732) (100,850,224) (4,258,888) (58,885,007)
Service Class ........................ (965,948) (14,743,931) (11,340,891) (161,564,728)
Investor A Class ..................... (98,727) (1,510,159) (183,519) (2,501,309)
Investor B Class ..................... (11,510) (176,079) (2,621) (36,765)
Investor C Class ..................... -- -- -- --
---------- ------------ ----------- -------------
Net increase (decrease) ................... (1,832,631) $(28,136,245) 23,298,131 $ 301,601,842
========== ============ =========== =============
</TABLE>
58
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
<TABLE>
<CAPTION>
Mid-Cap Value Equity Portfolio Mid-Cap Growth Equity Portfolio
------------------------------ -------------------------------
For the Period 12/27/96 For the Period 12/27/96
through 3/31/97 through 3/31/97
------------------------------ -------------------------------
(Unaudited) (Unaudited)
Shares Value Shares Value
----------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class .................. 5,852,440 $59,273,673 5,991,596 $59,548,630
Service Class ........................ 1,011,822 10,427,807 1,162,461 11,645,937
Investor A Class ..................... 71,230 740,181 98,427 974,312
Investor B Class ..................... 44,727 466,663 60,982 598,105
Investor C Class ..................... 1,012 10,622 1,149 11,622
Shares issued in reinvestment of
dividends:
Institutional Class .................. 2 19 -- --
Service Class ........................ -- -- -- --
Investor A Class ..................... 185 1,909 -- --
Investor B Class ..................... 99 1,019 -- --
Investor C Class ..................... 2 25 -- --
Shares redeemed:
Institutional Class .................. (168,127) (1,742,461) (22,291) (224,263)
Service Class ........................ (30,455) (317,780) (124,568) (1,257,617)
Investor A Class ..................... (1,032) (10,695) (624) (6,330)
Investor B Class ..................... (10) (100) -- --
Investor C Class ..................... -- -- -- --
--------- ----------- --------- -----------
Net increase .............................. 6,781,895 $68,850,882 7,167,132 $71,290,396
========= =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
Small Cap Value Equity Portfolio
----------------------------------------------------------------------
For the Six Months Ended For the Year Ended
3/31/97 9/30/96
------------------------------- --------------------------------
(Unaudited)
Shares Value Shares Value
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class ................. 2,326,023 $ 35,396,426 5,727,409 $ 88,470,134
Service Class ....................... 1,021,654 15,545,915 1,901,562 29,000,834
Investor A Class .................... 220,537 3,381,002 338,792 5,155,013
Investor B Class .................... 91,291 1,369,060 59,852 911,033
Investor C Class .................... 18,997 286,870 -- --
Shares issued in reinvestment of
dividends:
Institutional Class ................. 1,816,040 25,769,892 645,109 9,328,566
Service Class ....................... 630,842 8,943,152 226,962 3,270,019
Investor A Class .................... 247,516 3,513,740 80,917 1,164,116
Investor B Class .................... 24,354 340,893 6,393 91,094
Investor C Class .................... 36 513 -- --
Shares redeemed:
Institutional Class ................. (1,859,288) (28,385,576) (4,304,534) (62,163,080)
Service Class ....................... (797,880) (12,129,976) (1,109,462) (17,067,663)
Investor A Class .................... (395,700) (6,017,089) (303,906) (4,648,531)
Investor B Class .................... (12,466) (189,398) (15,176) (232,287)
Investor C Class .................... (2,823) (42,091) -- --
---------- ------------ ---------- ------------
Net increase ............................. 3,329,133 $ 47,783,333 3,253,918 $ 53,279,248
========== ============ ========== ============
</TABLE>
59
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
Small Cap Growth Equity Portfolio
----------------------------------------------------------------------
For the Six Months Ended For the Year Ended
3/31/97 9/30/96
------------------------------- --------------------------------
(Unaudited)
Shares Value Shares Value
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class ................. 13,357,105 $ 259,154,468 16,663,138 $ 306,180,268
Service Class ....................... 1,875,841 36,551,289 5,259,549 95,359,750
Investor A Class .................... 2,264,459 42,254,725 971,103 18,192,162
Investor B Class .................... 724,724 13,594,310 304,774 5,998,905
Investor C Class .................... 311,300 5,842,888 15,304 316,405
Shares issued in merger:
Institutional Class ................. -- -- -- --
Service Class ....................... -- -- 1,673,203 24,895,586
Investor A Class .................... -- -- -- --
Investor B Class .................... -- -- -- --
Investor C Class .................... -- -- -- --
Shares issued in reinvestment of
dividends:
Institutional Class ................. 821,752 16,346,714 9,532 148,705
Service Class ....................... 430,248 8,510,309 -- --
Investor A Class .................... 110,912 2,180,539 -- --
Investor B Class .................... 29,715 578,839 -- --
Investor C Class .................... 2,009 39,134 -- --
Shares redeemed:
Institutional Class ................. (9,445,799) (182,423,991) (12,706,267) (236,144,606)
Service Class ....................... (1,249,954) (24,315,083) (3,811,615) (73,436,186)
Investor A Class .................... (1,451,850) (26,541,698) (172,984) (3,281,785)
Investor B Class .................... (66,378) (1,212,213) (1,922) (37,876)
Investor C Class .................... (21,419) (437,054) -- --
---------- ------------- ----------- -------------
Net increase ............................. 7,692,665 $ 150,123,176 8,203,815 $ 138,191,328
========== ============= =========== =============
</TABLE>
60
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
<TABLE>
<CAPTION>
International Equity Portfolio
----------------------------------------------------------------------
For the Six Months Ended For the Year Ended
3/31/97 9/30/96
------------------------------- --------------------------------
(Unaudited)
Shares Value Shares Value
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class .................. 10,140,821 $ 133,048,259 20,240,830 $ 268,092,956
Service Class ........................ 2,262,527 29,641,869 8,177,309 108,086,063
Investor A Class ..................... 1,519,439 19,681,649 478,669 6,295,830
Investor B Class ..................... 82,624 1,072,277 126,819 1,666,256
Investor C Class ..................... 206 2,717 -- --
Shares issued in merger:
Institutional Class .................. -- -- -- --
Service Class ........................ -- -- 3,806,698 48,839,940
Investor A Class ..................... -- -- -- --
Investor B Class ..................... -- -- -- --
Investor C Class ..................... -- -- -- --
Shares issued in reinvestment of
dividends:
Institutional Class .................. 1,267,456 16,587,621 1,337,783 16,922,952
Service Class ........................ 429,352 5,605,176 402,264 5,080,592
Investor A Class ..................... 72,890 951,117 85,228 1,076,431
Investor B Class ..................... 10,030 129,581 5,789 72,831
Investor C Class ..................... 3 32 -- --
Shares redeemed:
Institutional Class .................. (8,424,133) (110,953,528) (16,204,435) (214,155,160)
Service Class ........................ (1,508,813) (20,026,567) (8,332,086) (111,145,703)
Investor A Class ..................... (1,512,607) (19,699,029) (417,192) (5,496,470)
Investor B Class ..................... (13,283) (172,507) (10,326) (134,551)
Investor C Class ..................... -- -- -- --
---------- ------------- ----------- -------------
Net increase .............................. 4,326,512 $ 55,868,667 9,697,350 $ 125,201,967
========== ============= =========== =============
</TABLE>
<TABLE>
<CAPTION>
International Emerging Markets Portfolio
----------------------------------------------------------------------
For the Six Months Ended For the Year Ended
3/31/97 9/30/96
------------------------------- --------------------------------
(Unaudited)
Shares Value Shares Value
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class .................. 3,476,889 $ 31,373,422 5,661,897 $ 47,868,196
Service Class ........................ 1,517,065 13,849,541 3,327,086 28,370,538
Investor A Class ..................... 81,867 760,640 131,558 1,124,251
Investor B Class ..................... 45,253 410,162 25,343 222,080
Investor C Class ..................... 2,266 21,982 -- --
Shares issued in reinvestment of
dividends:
Institutional Class .................. 12,113 102,838 4,708 36,395
Service Class ........................ -- -- 1,536 11,843
Investor A Class ..................... -- -- 381 2,939
Investor B Class ..................... -- -- -- --
Investor C Class ..................... -- -- -- --
Shares redeemed:
Institutional Class .................. (1,136,562) (10,600,290) (1,411,383) (11,922,973)
Service Class ........................ (379,507) (3,304,970) (809,955) (6,723,237)
Investor A Class ..................... (40,828) (362,737) (101,320) (845,446)
Investor B Class ..................... (1,356) (12,254) (465) (4,023)
Investor C Class ..................... -- -- -- --
---------- ------------ ---------- ------------
Net increase .............................. 3,577,200 $ 32,238,334 6,829,386 $ 58,140,563
========== ============ ========== ============
</TABLE>
61
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
Select Equity Portfolio
----------------------------------------------------------------------
For the Six Months Ended For the Year Ended
3/31/97 9/30/96
------------------------------- --------------------------------
(Unaudited)
Shares Value Shares Value
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class 4,316,646 $ 60,126,966 7,014,322 $ 90,778,286
Service Class 1,452,760 20,498,837 4,393,824 55,600,018
Investor A Class 301,663 4,261,330 188,355 2,393,475
Investor B Class 245,224 3,469,970 89,238 1,170,225
Investor C Class 590 8,325 3,698 50,000
Shares issued in reinvestment of
dividends:
Institutional Class 1,781,245 23,753,708 964,985 11,899,120
Service Class 596,138 7,941,298 261,309 3,214,497
Investor A Class 48,138 642,841 15,974 196,492
Investor B Class 11,045 147,009 223 2,987
Investor C Class 14 180 -- --
Shares redeemed:
Institutional Class (2,867,561) (40,683,437) (7,848,144) (99,717,894)
Service Class (825,208) (11,698,407) (3,310,365) (41,842,855)
Investor A Class (93,579) (1,300,173) (65,514) (837,399)
Investor B Class (6,633) (94,867) (1,084) (14,229)
Investor C Class (3,857) (53,367) -- --
---------- ------------ ---------- ------------
Net increase 4,956,625 $ 67,020,213 1,706,821 $ 22,892,723
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
Index Equity Portfolio
----------------------------------------------------------------------
For the Six Months Ended For the Year Ended
3/31/97 9/30/96
------------------------------- --------------------------------
(Unaudited)
Shares Value Shares Value
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class .................. 1,869,724 $ 27,910,897 4,484,065 $ 59,683,113
Service Class ........................ 2,213,097 32,845,540 3,817,000 50,684,497
Investor A Class ..................... 352,090 5,164,747 502,304 6,723,301
Investor B Class ..................... 793,512 11,804,287 210,696 2,839,706
Investor C Class ..................... 584,782 8,605,671 30,961 425,185
Shares issued in reinvestment of
dividends:
Institutional Class .................. 535,190 7,245,182 1,243,410 15,521,894
Service Class ........................ 417,113 5,645,242 738,516 9,213,090
Investor A Class ..................... 52,845 719,543 90,152 1,131,385
Investor B Class ..................... 11,292 154,524 845 11,680
Investor C Class ..................... 2,000 27,921 57 789
Shares redeemed:
Institutional Class .................. (1,578,873) (23,238,834) (4,685,091) (62,461,246)
Service Class ........................ (708,793) (10,395,766) (1,705,590) (22,882,230)
Investor A Class ..................... (106,749) (1,550,740) (157,934) (2,138,524)
Investor B Class ..................... (12,922) (191,471) (3,004) (40,532)
Investor C Class ..................... (40,846) (600,818) -- --
---------- ------------ ---------- ------------
Net increase .............................. 4,383,462 $ 64,145,925 4,566,387 $ 58,712,108
========== ============ ========== ============
</TABLE>
62
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
<TABLE>
<CAPTION>
Balanced Portfolio
----------------------------------------------------------------------
For the Six Months Ended For the Year Ended
3/31/97 9/30/96
------------------------------- --------------------------------
(Unaudited)
Shares Value Shares Value
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class .................. 277,557 $ 4,373,453 1,495,474 $ 22,044,696
Service Class ........................ 1,779,789 27,683,903 5,780,619 83,542,569
Investor A Class ..................... 352,044 5,600,798 723,332 10,528,196
Investor B Class ..................... 324,498 5,118,317 278,873 4,050,321
Investor C Class ..................... 1,690 27,458 -- --
Shares issued in merger:
Institutional Class .................. -- -- -- --
Service Class ........................ -- -- 2,440,889 34,294,489
Investor A Class ..................... -- -- -- --
Investor B Class ..................... -- -- -- --
Investor C Class ..................... -- -- -- --
Shares issued in reinvestment of
dividends:
Institutional Class .................. 89,671 1,391,336 70,021 1,020,402
Service Class ........................ 371,082 5,750,242 269,899 3,931,350
Investor A Class ..................... 219,993 3,426,087 171,778 2,492,258
Investor B Class ..................... 23,678 367,016 8,524 123,532
Investor C Class ..................... 7 108 -- --
Shares redeemed:
Institutional Class .................. (892,876) (14,127,317) (864,140) (12,698,183)
Service Class ........................ (1,433,688) (22,649,955) (5,846,594) (84,992,584)
Investor A Class ..................... (466,584) (7,388,347) (1,078,557) (15,629,171)
Investor B Class ..................... (39,592) (625,442) (27,995) (406,030)
Investor C Class ..................... -- -- -- --
---------- ------------ ---------- ------------
Net increase .............................. 607,269 $ 8,947,657 3,422,123 $ 48,301,845
========== ============ ========== ============
</TABLE>
(E) AT MARCH 31, 1997, NET ASSETS CONSISTED OF:
<TABLE>
<CAPTION>
Large Cap Large Cap Mid-Cap Mid-Cap Small Cap Small Cap
Value Equity Growth Equity Value Equity Growth Equity Value Equity Growth Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
-------------- ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Capital paid in .................. $ 968,404,886 $483,519,467 $68,850,882 $71,290,396 $292,825,278 $441,247,124
Undistributed net
investment income ............. -- -- 19,038 37,413 -- --
Overdistributed net
investment income ............. (345,358) (122,791) -- -- (373,969) (499,143)
Accumulated net realized
gain (loss) on investment
transactions, futures
contracts and foreign
exchange contracts ............ 79,058,655 40,582,345 (36,769) (990,770) 21,888,999 9,615,503
Net unrealized appreciation
(depreciation) on
investment transactions,
futures contracts and
foreign exchange
contracts ..................... 162,853,258 126,111,645 (688,023) (6,314,386) 37,129,826 28,447,163
-------------- ------------ ----------- ----------- ------------ ------------
$1,209,971,441 $650,090,666 $68,145,128 $64,022,653 $351,470,134 $478,810,647
============== ============ =========== =========== ============ ============
</TABLE>
63
<PAGE>
[LOGO OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
International International Select Index
Equity Emerging Markets Equity Equity Balanced
Portfolio Portfolio Portfolio Portfolio Portfolio
------------- ---------------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
Capital paid in ...................... $579,031,785 $140,596,062 $378,398,569 $236,322,669 $215,197,391
Undistributed net
investment income ................. 2,058,154 87,272 -- 144,626 14,921
Overdistributed net
investment income ................. -- -- (103,085) -- --
Accumulated net realized
gain (loss) on investment
transactions, futures
contracts and foreign
exchange contracts ................ (11,089,499) (250,717) 18,836,674 (414,203) 8,956,663
Net unrealized appreciation on
investment transactions,
futures contracts and foreign
exchange contracts ................ 44,847,292 17,902,637 75,964,184 86,201,401 43,842,780
------------ ------------ ------------ ------------ ------------
$614,847,732 $158,335,254 $473,096,342 $322,254,493 $268,011,755
============ ============ ============ ============ ============
</TABLE>
(F) CAPITAL LOSS CARRYOVER
At September 30, 1996, a capital loss carryover of $679,601, which expires
in the year 2004 was available to offset possible future realized capital gains
in the International Emerging Portfolio. At September 30, 1996, deferred
post-October losses for the International Emerging Markets Portfolio were
$2,273,600.
(G) MERGER
On September 29, 1995 and October 2, 1995, respectively, the Board of
Trustees of the Fund and the Board of Trustees of The Compass Capital Group of
Funds ("Compass") approved an asset purchase agreement providing for the
transfer of all of the assets and liabilities of Compass to the Fund. At a
special meeting of shareholders held on December 11, 1995, the shareholders of
Compass voted to approve the asset purchase agreement. Pursuant to the asset
purchase agreement, on January 13, 1996 all of the assets and liabilities of
Compass were transferred to the Fund in a tax-free exchange for Service shares
of the Fund except the assets and liabilities of the Compass International Fixed
Income Fund which were transferred on February 13, 1996. The details of this
business combination as it relates to the Portfolios are described below.
The following table summarizes certain relevant information of the Fund
prior to and immediately after the business combination. The Fund Portfolios are
the accounting survivors and, as such, the new combined funds maintain all the
operating history of the Fund Portfolios.
<TABLE>
<CAPTION>
The Compass Capital Group of Funds
and BFM Institutional Trust Compass Capital Funds
- --------------------------------------------------------------- -----------------------------------------------------------------
Combined
Unrealized Shares Net Assets
Net Asset Appreciation New Issued in After NAV
Shares at Value at (Depreciation) Portfolio Business Business per
Fund Name 1/13/96 1/13/96 at 1/13/96 Name Combination Combination Share
- -------------------- ---------- ------------ ------------- ----------------------- ----------- -------------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Equity Income ......... 28,396,812 $344,453,317 $17,227,647 Value Equity ............. 25,439,684 $1,066,660,942 $13.54
Growth ................ 13,274,219 162,741,919 21,104,698 Growth Equity ............ 12,988,182 495,952,512 $12.53
Small Company ......... 2,364,413 24,895,586 610,916 Small Cap Growth Equity .. 1,673,203 278,684,029 $14.88
International Equity .. 3,625,831 48,839,940 5,558,142 International Equity ..... 3,806,698 507,920,573 $12.83
Balanced .............. 320,140 34,294,486 1,566,037 Balanced ................. 2,440,889 228,489,486 $14.05
</TABLE>
64
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE U.S. LARGE COMPANY SERIES
FOUR MONTHS ENDED MARCH 31, 1997
(UNAUDITED)
<PAGE>
TABLE OF CONTENTS THE DFA INVESTMENT TRUST COMPANY
THE U.S. LARGE COMPANY SERIES
Page
Statements of Net Assets ................................... 68
Statements of Operations ................................... 72
Statements of Changes in Net Assets ........................ 73
Financial Highlights ....................................... 74
Notes to Financial Statements .............................. 75
THIS REPORT IS SUBMITTED FOR THE INFORMATION OF THE FUND'S SHAREHOLDERS. IT IS
NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR
ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
<PAGE>
STATEMENTS OF NET ASSETS THE DFA INVESTMENT TRUST COMPANY
THE U.S. LARGE COMPANY SERIES
- ----------------------------------------------------------------
MARCH 31, 1997
-------------------------
(UNAUDITED)
SHARES VALUE(DAGGER)
------ -------------
COMMON STOCKS -- (99.7%)
3COM Corp. ........................ 16,500 $ 539,344*
AMP, Inc. ......................... 20,604 708,263
AMR Corp. ......................... 8,600 709,500*
AON Corp. ......................... 10,150 621,688
AT & T Corp. ...................... 151,539 5,265,980
Abbott Laboratories ............... 72,700 4,080,288
Advanced Micro Devices, Inc. ...... 12,700 527,050*
Aetna, Inc. ....................... 14,237 1,222,602
Ahmanson (H.F.) & Co. ............. 9,900 361,350
Air Products & Chemicals, Inc. .... 10,500 712,688
Airtouch Communications, Inc. ..... 46,900 1,078,700*
Alberto-Culver Co. Class B ........ 5,300 138,463
Albertson's Inc. .................. 23,400 795,600
Alcan Aluminum, Ltd. .............. 21,200 718,150
Allegheny Teledyne, Inc. .......... 16,300 458,438
Allergan, Inc. .................... 6,100 177,663
AlliedSignal, Inc. ................ 26,500 1,888,125#
Allstate Corp. .................... 41,627 2,471,603
Alltel Corp. ...................... 17,600 572,000
Aluminium Co. of America .......... 16,200 1,101,600
Alza Corp. ........................ 7,800 214,500*
Amdahl Corp. ...................... 11,300 105,938*
Amerada Hess Corp. ................ 8,800 466,400
American Brands, Inc. ............. 15,900 804,938
American Electric Power Co., Inc. . 17,500 721,875
American Express Co. .............. 44,200 2,646,475
American General Corp. ............ 18,900 770,175#
American Greetings Corp. Class A .. 6,900 219,938#
American Home Products Corp. ...... 59,600 3,576,000
American International Group, Inc. 43,862 5,148,302
American Stores Co. ............... 13,800 614,100
Ameritech Corp. ................... 51,500 3,167,250
Amgen, Inc. ....................... 24,800 1,387,250*
Amoco Corp. ....................... 46,600 4,036,725
Andrew Corp. ...................... 8,493 305,217
Anheuser-Busch Companies, Inc. .... 46,800 1,971,450
Apple Computer, Inc. .............. 11,600 212,425*
Applied Materials, Inc. ........... 16,800 778,050*
Archer-Daniels Midland Co. ........ 50,678 905,869
Armco, Inc. ....................... 10,000 40,000*
Armstrong World Industries, Inc. .. 4,000 259,000
Asarco, Inc. ...................... 4,050 113,906
Ashland, Inc. ..................... 6,000 241,500
Atlantic Richfield Co. ............ 15,100 2,038,500
Autodesk, Inc. .................... 4,400 136,675
Automatic Data Processing, Inc. ... 27,400 1,147,375
Autozone, Inc. .................... 14,200 319,500*
Avery Dennison Corp. .............. 9,800 377,300
Avon Products, Inc. ............... 12,300 645,750
Baker Hughes, Inc. ................ 13,700 525,738
Ball Corp. ........................ 3,000 79,500
Baltimore Gas & Electric Co. ...... 13,950 373,163
Banc One Corp. .................... 40,111 1,594,412#
Bank of Boston Corp. .............. 14,400 964,800
Bank of New York Co., Inc. ........ 36,700 1,348,725#
BankAmerica Corp. ................. 33,468 3,371,901
Bankers Trust New York Corp. ...... 7,800 639,600
Bard (C.R.), Inc. ................. 5,400 153,900
Barnett Banks, Inc. ............... 18,400 855,600
Barrick Gold Corp. ................ 33,300 790,875#
Battle Mountain Gold Co. .......... 21,000 139,125
Bausch & Lomb, Inc. ............... 5,200 205,400
Baxter International, Inc. ........ 25,600 1,104,000
Bay Networks, Inc. ................ 18,600 332,475*
Becton Dickinson & Co. ............ 11,600 522,000
- ----------------------------------------------------------------
MARCH 31, 1997
-------------------------
(UNAUDITED)
SHARES VALUE(DAGGER)
------ -------------
Bell Atlantic Corp. ............... 41,000 $ 2,495,875#
Bellsouth Corp. ................... 92,700 3,916,575
Bemis Co., Inc. ................... 4,900 196,000
Beneficial Corp. .................. 5,100 329,588
Bethlehem Steel Corp. ............. 10,500 86,625*
Beverly Enterprises ............... 9,400 133,950*
Biomet, Inc. ...................... 10,800 182,925
Black & Decker Corp. .............. 9,000 289,125
Block (H.&R.), Inc. ............... 9,800 287,875#
Boeing Co. ........................ 33,443 3,298,316#
Boise Cascade Corp. ............... 4,600 140,300
Boston Scientific Corp. ........... 16,600 1,025,050*#
Briggs & Stratton Corp. ........... 2,600 116,675
Bristol Myers Squibb Co. .......... 93,800 5,534,200
Brown-Forman Corp. Class B ........ 6,400 305,600
Browning-Ferris Industries, Inc. .. 20,000 577,500
Brunswick Corp. ................... 9,300 249,938
Burlington Northern Santa Fe
Corp. .......................... 14,437 1,068,338
Burlington Resources, Inc. ........ 11,600 495,900
CIGNA Corp. ....................... 7,000 1,022,875
CPC International, Inc. ........... 13,600 1,115,200
CSX Corp. ......................... 20,400 948,600
CUC International, Inc. ........... 37,150 835,875*#
CVS Corp. ......................... 9,900 456,638#
Cabletron Systems, Inc. ........... 14,700 429,975*#
Caliber Systems, Inc. ............. 3,800 100,700
Campbell Soup Co. ................. 43,600 2,021,950
Carolina Power & Light Co. ........ 14,300 518,375#
Case Corp. ........................ 6,800 345,100
Caterpillar, Inc. ................. 17,800 1,428,450
Centex Corp. ...................... 2,600 91,650
Central & South West Corp. ........ 19,800 423,225#
Ceridian Corp. .................... 6,400 229,600*
Champion International Corp. ...... 9,100 414,050
Charming Shoppes, Inc. ............ 9,900 54,141*
Chase Manhattan Corp. ............. 41,096 3,847,613
Chevron Corp. ..................... 61,100 4,254,088
Chrysler Corp. .................... 67,500 2,025,000
Chubb Corp. ....................... 16,300 878,163
Cincinnati Milacron, Inc. ......... 3,800 71,250
Cinergy Corp. ..................... 14,793 504,811
Circuit City Stores, Inc. ......... 9,300 310,388#
Cisco Sytems, Inc. ................ 61,400 2,958,713*
Citicorp .......................... 43,600 4,719,700
Clorox Co. ........................ 4,900 549,413#
Coastal Corp. ..................... 9,950 477,600
Coca-Cola Co. ..................... 232,700 13,002,056
Cognizant Corp. ................... 16,000 466,000
Colgate-Palmolive Co. ............. 13,900 1,384,788
Columbia Gas System, Inc. ......... 5,200 300,950
Columbia/HCA Healthcare Corp. ..... 62,782 2,111,045
Comcast Corp. Class A Special ..... 30,650 519,134
Comerica, Inc. .................... 10,100 569,388
Compaq Computer Corp. ............. 25,400 1,946,275*
Computer Associates International,
Inc. ........................... 33,975 1,320,778
Computer Sciences Corp. ........... 7,300 450,775*#
Conagra, Inc. ..................... 22,450 1,217,913#
Conrail, Inc. ..................... 5,505 620,689
Conseco, Inc. ..................... 16,000 570,000
Consolidated Edison Co. of
New York, Inc. ................. 21,900 657,000
Consolidated Natural Gas Co. ...... 9,000 453,375
Cooper Industries, Inc. ........... 10,200 442,425#
Cooper Tire & Rubber Co. .......... 7,600 140,600
Coors (Adolph) Co. Class B ........ 3,700 77,931
Corestates Financial Corp. ........ 20,900 992,750
Corning, Inc. ..................... 21,500 954,063
See accompanying notes to financial statements.
68
<PAGE>
STATEMENTS OF NET ASSETS THE DFA INVESTMENT TRUST COMPANY
THE U.S. LARGE COMPANY SERIES (CONTINUED)
- ----------------------------------------------------------------
MARCH 31, 1997
-------------------------
(UNAUDITED)
SHARES VALUE(DAGGER)
------ -------------
Costco Companies, Inc. ............ 19,703 $ 545,527*
Crane Co. ......................... 4,400 138,050
Crown Cork & Seal Co., Inc. ....... 11,900 614,338
Cummins Engine Co., Inc. .......... 3,800 194,750
Cyprus Amax Minerals Co., Inc. .... 8,850 210,188
DSC Communications Corp. .......... 11,000 230,313*
DTE Energy Co. .................... 13,700 368,188
Dana Corp. ........................ 9,600 315,600
Darden Restaurants, Inc. .......... 15,100 118,913
Data General Corp. ................ 3,800 64,600*
Dayton-Hudson Corp. ............... 20,300 847,525
Dean Witter, Discover & Co. ....... 30,154 1,051,621
Deere & Co. ....................... 24,000 1,044,000#
Dell Computer Corp. ............... 16,800 1,137,150*
Delta Air Lines, Inc. ............. 6,900 580,463
Deluxe Corp. ...................... 7,600 246,050
Digital Equipment Corp. ........... 14,600 399,675*
Dillard Department Stores, Inc.
Class A ......................... 10,600 333,900
Disney (Walt) Co. ................. 63,100 4,606,300
Dominion Resources, Inc. VA ....... 16,800 611,100
Donnelley (R.R.) & Sons Co. ....... 14,200 495,225
Dover Corp. ....................... 10,500 551,250
Dow Chemical Co. .................. 22,700 1,816,000
Dow Jones & Co., Inc. ............. 9,100 369,688#
Dresser Industries, Inc. .......... 16,400 496,100
DuPont (E.I.) de Nemours & Co. .... 52,700 5,586,200
Duke Power Co. .................... 19,000 838,375#
Dun & Bradstreet Corp. ............ 15,900 403,463
E G & G, Inc. ..................... 4,500 93,938
EMC Corp. MA ...................... 21,700 770,350*
Eastern Enterprises ............... 1,800 55,575
Eastman Chemical Co. .............. 7,150 384,313
Eastman Kodak Co. ................. 31,200 2,367,300
Eaton Corp. ....................... 7,100 503,213#
Echlin, Inc. ...................... 5,800 197,200
Echo Bay Mines, Ltd. .............. 13,200 87,450
Ecolab, Inc. ...................... 6,000 228,000
Edison International .............. 40,600 913,500
Emerson Electric Co. .............. 41,700 1,876,500
Engelhard Corp. ................... 13,574 285,054
Enron Corp. ....................... 23,700 900,600
Enserch Corp. ..................... 6,500 133,250
Entergy Corp. ..................... 21,600 529,200
Exxon Corp. ....................... 116,200 12,520,550
FMC Corp. ......................... 3,600 220,500*
FPL Group, Inc. ................... 17,100 754,538
Federal Express Corp. ............. 10,700 557,738*
Federal Home Loan Mortgage Corp. .. 66,800 1,820,300
Federal National Mortgage
Association .................... 102,100 3,688,363
Federated Department Stores, Inc. . 19,500 641,063*#
Fifth Third Bancorp ............... 10,000 775,625
First Bank System, Inc. ........... 12,500 912,500
First Chicago NBD Corp. ........... 29,893 1,617,959
First Data Corp. .................. 41,900 1,419,363#
First Union Corp. ................. 26,540 2,153,058#
Fleet Financial Group, Inc. ....... 24,664 1,412,014#
Fleetwood Enterprises, Inc. ....... 3,500 87,500
Fleming Companies, Inc. ........... 3,700 64,750
Fluor Corp. ....................... 8,000 420,000
Ford Motor Co. .................... 110,900 3,479,488
Foster Wheeler Corp. .............. 3,950 139,731
Freeport McMoran Copper & Gold, Inc.
Class B ......................... 18,000 546,750
Frontier Corporation .............. 15,400 275,275
Fruit of the Loom, Inc. Class A ... 7,100 294,650*
GPU, Inc. ......................... 11,300 363,013
- ----------------------------------------------------------------
MARCH 31, 1997
-------------------------
(UNAUDITED)
SHARES VALUE(DAGGER)
------ -------------
GTE Corp. ......................... 90,000 $ 4,196,250
Gannett Co., Inc. ................. 13,100 1,124,963
Gap, Inc. ......................... 26,200 877,700
General Dynamics Corp. ............ 5,900 397,513
General Electric Co. .............. 154,000 15,284,500
General Instrument Corp. .......... 12,980 296,918*
General Mills, Inc. ............... 15,300 950,513
General Motors Corp. .............. 70,700 3,915,013
General RE Corp. .................. 7,600 1,200,800
General Signal Corp. .............. 4,700 183,888
Genuine Parts Co. ................. 11,250 524,531
Georgia-Pacific Corp. ............. 8,700 630,750
Giant Food, Inc. Class A .......... 5,600 179,200
Giddings & Lewis, Inc. ............ 3,250 47,938
Gillette Co. ...................... 51,900 3,769,238
Golden West Financial Corp. ....... 5,400 338,850
Goodrich (B.F.) Co. ............... 5,100 186,788
Goodyear Tire & Rubber Co. ........ 14,600 762,850
Grace (W.R.) & Co. ................ 7,900 374,263
Grainger (W.W.), Inc. ............. 5,000 370,000
Great Atlantic & Pacific Tea
Co., Inc. ...................... 3,700 93,888
Great Lakes Chemical Corp. ........ 5,900 271,400
Great Western Financial Corp. ..... 12,800 516,800
Green Tree Financial Corp. ........ 13,000 438,750
Guidant Corp. ..................... 6,900 424,350#
HFS, Inc. ......................... 12,000 706,500*#
Halliburton Co. ................... 11,700 792,675
Harcourt General, Inc. ............ 6,623 307,970
Harland (John H.) Co. ............. 3,050 72,438
Harnischfeger Industries, Inc. .... 4,676 217,434
Harrahs Entertainment, Inc. ....... 9,700 166,113*
Harris Corp. ...................... 3,800 292,125
Hasbro, Inc. ...................... 11,925 326,447
Healthsouth Corp. ................. 29,600 566,100*
Heinz (H.J.) Co. .................. 34,550 1,364,725
Helmerich & Payne, Inc. ........... 2,300 106,375
Hercules, Inc. .................... 9,700 409,825
Hershey Foods Corp. ............... 14,500 725,000
Hewlett-Packard Co. ............... 94,900 5,053,425
Hilton Hotels Corp. ............... 23,000 557,750
Home Depot, Inc. .................. 45,048 2,410,068
Homestake Mining Co. .............. 13,600 205,700
Honeywell, Inc. ................... 11,800 800,925
Household International, Inc. ..... 9,200 792,350
Houston Industries, Inc. .......... 21,900 457,163#
Humana, Inc. ...................... 15,300 336,600*
ITT Corp. ......................... 10,900 641,738*
ITT Hartford Group, Inc. .......... 11,000 793,375
ITT Industries, Inc. .............. 11,000 246,125
Ikon Office Solutions, Inc. ....... 12,700 425,450#
Illinois Tool Works, Inc. ......... 11,500 938,688#
Inco, Ltd. ........................ 15,800 515,475
Ingersoll-Rand Co. ................ 10,300 449,338
Inland Steel Industries, Inc. ..... 4,600 89,700
Intel Corp. ....................... 76,700 10,666,094
Intergraph Corp. .................. 4,500 35,438*
International Business Machines
Corp. .......................... 48,400 6,648,950
International Flavors &
Fragrances, Inc. ............... 10,400 455,000
International Paper Co. ........... 28,000 1,088,500
Interpublic Group of Companies,
Inc. ........................... 7,500 395,625
James River Corp. of Virginia ..... 8,200 238,825
Jefferson-Pilot Corp. ............. 6,650 361,594
Johnson & Johnson ................. 124,700 6,593,513
Johnson Controls, Inc. ............ 4,000 322,000
Jostens, Inc. ..................... 3,700 83,713
K Mart Corp. ...................... 45,400 550,475*
See accompanying notes to financial statements.
69
<PAGE>
STATEMENTS OF NET ASSETS THE DFA INVESTMENT TRUST COMPANY
THE U.S. LARGE COMPANY SERIES (CONTINUED)
- ----------------------------------------------------------------
MARCH 31, 1997
-------------------------
(UNAUDITED)
SHARES VALUE(DAGGER)
------ -------------
Kaufman & Broad Home Corp. ........ 3,800 $ 50,350
Kellogg Co. ....................... 19,800 1,331,550
Kerr-McGee Corp. .................. 4,600 284,625
Keycorp ........................... 21,100 1,028,625
Kimberly Clark Corp. .............. 26,442 2,627,674#
King World Productions, Inc. ...... 3,600 131,400*
Knight Ridder, Inc. ............... 8,900 354,888
Kroger Co. ........................ 11,700 593,775*
LSI Logic Corp. ................... 12,000 417,000*
Laidlaw, Inc. Class B Non-Voting .. 29,500 405,625
Lilly (Eli) & Co. ................. 51,700 4,252,325#
Limited, Inc. ..................... 25,400 466,725
Lincoln National Corp. ............ 9,800 524,300
Liz Claiborne, Inc. ............... 6,600 287,925
Lockheed Martin Corp. ............. 17,957 1,508,388
Loews Corp. ....................... 10,800 959,850
Longs Drug Stores Corp. ........... 3,800 89,300
Louisiana Land & Exploration Co. .. 3,300 156,338
Louisiana-Pacific Corp. ........... 10,200 211,650
Lowe's Companies, Inc. ............ 16,200 605,475
Lucent Technologies, Inc. ......... 59,690 3,148,648#
MBIA, Inc. ........................ 4,100 393,088
MBNA Corp. ........................ 31,287 872,125
MCI Communications Corp. .......... 64,000 2,276,000
MGIC Investment Corp. ............. 5,500 389,125
Mallinckrodt Group, Inc. .......... 6,800 279,650
Manor Care, Inc. .................. 5,900 143,813
Marriott International, Inc. ...... 11,900 592,025
Marsh & McLennan Companies, Inc. .. 6,700 758,775
Masco Corp. ....................... 15,100 539,825
Mattel, Inc. ...................... 25,452 610,848
May Department Stores Co. ......... 23,400 1,064,700
Maytag Corp. ...................... 9,500 195,938
McDermott International, Inc. ..... 5,200 111,150
McDonald's Corp. .................. 65,400 3,090,150
McDonnell Douglas Corp. ........... 19,900 1,213,900
McGraw-Hill Companies, Inc. ....... 9,400 480,575
Mead Corp. ........................ 4,900 259,700
Medtronic, Inc. ................... 22,400 1,394,400#
Mellon Bank Corp. ................. 12,050 876,638
Mercantile Stores Co., Inc. ....... 3,600 166,950
Merck & Co., Inc. ................. 112,700 9,494,975
Meredith Corp. .................... 5,100 117,938
Merrill Lynch & Co., Inc. ......... 15,400 1,322,475
Micron Technology, Inc. ........... 19,600 793,800#
Microsoft Corp. ................... 112,400 10,305,675*
Millipore Corp. ................... 4,100 173,738
Minnesota Mining & Manufacturing
Co. ............................ 39,000 3,295,500
Mobil Corp. ....................... 36,900 4,820,063
Monsanto Co. ...................... 55,100 2,107,575
Moore Corp., Ltd. ................. 9,400 188,000
Morgan (J.P.) & Co., Inc. ......... 17,400 1,709,550#
Morgan Stanley Group, Inc. ........ 14,400 846,000
Morton International, Inc. ........ 13,200 557,700
Motorola, Inc. .................... 55,600 3,356,850
Nacco Industries, Inc. Class A .... 800 39,400
Nalco Chemical Co. ................ 6,300 235,463#
National City Corp. ............... 20,800 969,800
National Semiconductor Corp. ...... 13,100 360,250*
National Service Industries, Inc. . 4,500 176,063
NationsBank Corp. ................. 72,176 3,996,746
Navistar International Corp. ...... 6,870 64,406*
New York Times Class A ............ 9,200 405,950
Newell Co. ........................ 14,900 499,150
Newmont Mining Corp. .............. 9,415 364,831
Niagara Mohawk Power Corp. ........ 13,400 113,900*
- ----------------------------------------------------------------
MARCH 31, 1997
-------------------------
(UNAUDITED)
SHARES VALUE(DAGGER)
------ -------------
Nicor, Inc. ....................... 4,700 $ 150,400
Nike, Inc. Class B ................ 26,900 1,667,800
Noram Energy Corp. ................ 13,000 190,125
Nordstrom, Inc. ................... 7,500 284,531
Norfolk Southern Corp. ............ 11,700 997,425
Northern States Power Co. MN ...... 6,400 303,200
Northern Telecom, Ltd. ............ 24,300 1,588,613
Northrop Grumman Corp. ............ 5,400 408,375
Norwest Corp. ..................... 34,800 1,609,500
Novell, Inc. ...................... 32,500 307,734*
Nucor Corp. ....................... 8,100 370,575
Nynex Corp. ....................... 41,200 1,879,750
Occidental Petroleum Corp. ........ 30,800 758,450
Ohio Edison Co. ................... 14,400 304,200
Oneok, Inc. ....................... 2,500 65,000
Oracle Systems Corp. .............. 63,375 2,443,898*
Oryx Energy Co. ................... 9,900 190,575*
Owens Corning . ................... 4,900 197,225
PECO Energy Co. ................... 20,800 423,800
PNC Bank Corp. .................... 31,550 1,262,000
PP&L Resources, Inc. .............. 15,200 307,800
PPG Industries, Inc. .............. 17,100 923,400
Paccar, Inc. ...................... 3,760 250,980
PacifiCorp ........................ 27,500 587,813#
Pacific Enterprises ............... 8,100 245,025
Pacific Gas & Electric Co. ........ 38,500 904,750#
Pacific Telesis Group ............. 40,200 1,517,550
Pall Corp. ........................ 11,766 272,089#
Panenergy Corp. ................... 14,200 612,375
Parker-Hannifin Corp. ............. 6,850 292,838
Penney (J.C.) Co., Inc. ........... 23,400 1,114,425
Pennzoil Co. ...................... 4,400 227,700
Peoples Energy Corp. .............. 3,400 112,625
Pep Boys -- Manny, Moe & Jack ..... 5,800 174,000
Pepsico, Inc. ..................... 145,200 4,737,150
Perkin Elmer Corp. ................ 4,100 263,938
Pfizer, Inc. ...................... 60,400 5,081,150
Pharmacia & Upjohn, Inc. .......... 47,480 1,738,955#
Phelps Dodge Corp. ................ 6,000 438,750
Philip Morris Companies, Inc. ..... 76,300 8,707,738
Phillips Petroleum Co. ............ 24,700 1,009,613
Pioneer Hi-Bred International,
Inc. ........................... 7,600 477,850#
Pitney Bowes, Inc. ................ 14,000 822,500
Placer Dome, Inc. ................. 22,300 404,188
Polaroid Corp. .................... 4,300 170,925
Potlatch Corp. .................... 2,600 106,925
Praxair, Inc. ..................... 14,700 659,663
Procter & Gamble Co. .............. 63,416 7,292,840
Providian Corp. ................... 8,900 476,150
Public Service Enterprise Group,
Inc. ........................... 22,300 585,375
Pulte Corp. ....................... 2,100 61,425
Quaker Oats Co. ................... 12,600 459,900
Ralston Purina Group .............. 10,000 781,250
Raychem Corp. ..................... 4,300 354,213
Raytheon Co. ...................... 22,000 992,750
Reebok International, Ltd. ........ 5,200 233,350
Republic New York Corp. ........... 5,200 458,250
Reynolds Metals Co. ............... 5,900 365,800
Rite Aid Corp. .................... 11,400 478,800
Rockwell International Corp. ...... 20,500 1,329,938
Rohm & Haas Co. ................... 6,000 449,250
Rowan Companies, Inc. ............. 7,900 178,738*
Royal Dutch Petroleum Co. ......... 50,300 8,802,500#
Rubbermaid, Inc. .................. 14,100 350,738
Russell Corp. ..................... 3,700 132,275
Ryder System, Inc. ................ 7,800 228,150
See accompanying notes to financial statements.
70
<PAGE>
STATEMENTS OF NET ASSETS THE DFA INVESTMENT TRUST COMPANY
THE U.S. LARGE COMPANY SERIES (CONTINUED)
- ----------------------------------------------------------------
MARCH 31, 1997
-------------------------
(UNAUDITED)
SHARES VALUE(DAGGER)
------ --------------
SBC Communications, Inc. .......... 56,500 $ 2,973,313
Safeco Corp. ...................... 11,700 470,194
Safety Kleen Corp. ................ 5,500 81,125
Saint Jude Medical, Inc. .......... 7,450 248,644*
Saint Paul Companies, Inc. ........ 7,900 512,513
Salomon, Inc. ..................... 10,200 508,725
Santa Fe Energy Resources, Inc. ... 8,580 119,048*
Santa Fe Pacific Corp. ............ 12,254 202,191
Sara Lee Corp. .................... 45,100 1,826,550
Schering-Plough Corp. ............. 34,700 2,524,425
Schlumberger, Ltd. ................ 23,200 2,488,200
Scientific-Atlanta, Inc. .......... 7,400 112,850
Seagate Technology, Inc. .......... 23,300 1,045,588*
Seagram Co., Ltd. ................. 34,700 1,327,275
Sears, Roebuck & Co. .............. 36,600 1,839,150
Service Corp. International ....... 22,000 654,500#
Shared Medical Systems Corp. ...... 2,100 97,913
Sherwin-Williams Co. .............. 16,400 442,800
Sigma-Aldrich Corp. ............... 9,400 289,050
Silicon Graphics, Inc. ............ 16,400 319,800*
Snap-On, Inc. ..................... 5,700 220,875
Sonat, Inc. ....................... 8,200 446,900
Southern Co. ...................... 63,000 1,330,875
Southwest Airlines Co. ............ 13,700 303,113
Springs Industries, Inc. Class A .. 1,850 82,788
Sprint Corp. ...................... 40,400 1,838,200
Stanley Works ..................... 8,200 310,575
Stone Container Corp. ............. 9,400 104,575
Stride Rite Corp. ................. 4,700 70,500
Sun Company, Inc. ................. 6,800 177,650
Sun Microsystems .................. 34,540 995,184*
Suntrust Banks, Inc. .............. 20,900 969,238
Supervalu, Inc. ................... 6,300 187,425
Sysco Corp. ....................... 16,700 569,888
TJX Companies, Inc. ............... 7,200 307,800
TRW, Inc. ......................... 11,800 610,650
Tandem Computers, Inc. ............ 11,000 130,625*
Tandy Corp. ....................... 5,515 276,439
Tektronix, Inc. ................... 3,200 161,600
Tele-Communications, Inc. Class A . 62,000 744,000*
Tellabs, Inc. ..................... 16,700 603,288*
Temple-Inland, Inc. ............... 5,200 273,000
Tenet Healthcare Corp. ............ 28,300 696,888*
Tenneco, Inc. ..................... 16,000 624,000
Texaco, Inc. ...................... 24,800 2,715,600#
Texas Instruments, Inc. ........... 17,700 1,325,288
Texas Utilities Co. ............... 21,000 719,250
Textron, Inc. ..................... 7,900 829,500
Thermo-Electron Corp. ............. 14,100 435,338*
Thomas & Betts Corp. .............. 5,000 213,750
Time Warner, Inc. ................. 53,160 2,299,170
Times Mirror Co. Class A .......... 9,300 508,013
Timken Co. ........................ 3,100 165,850
Torchmark Corp. ................... 6,550 362,706
Toys `R' Us, Inc. ................. 27,200 761,600*
Transamerica Corp. ................ 6,200 554,900#
Travelers Group, Inc. ............. 59,796 2,862,720
Tribune Co. ....................... 11,500 465,750
Trinova Corp. ..................... 2,800 93,800
Tupperware Corp. .................. 5,800 194,300
Tyco International, Ltd. .......... 15,600 858,000#
UNUM Corp. ........................ 6,800 496,400
US Bancorp ........................ 14,200 760,588
US West, Inc. Communications
Group .......................... 44,800 1,523,200
US West, Inc. Media Group ......... 58,400 1,087,700*#
USAir Group, Inc. ................. 6,000 147,000*
- ----------------------------------------------------------------
MARCH 31, 1997
-------------------------
(UNAUDITED)
SHARES VALUE(DAGGER)
------ -------------
USF&G Corp. ....................... 10,800 $ 232,200
USLIFE Corp. ...................... 3,325 155,444
UST, Inc. ......................... 17,300 482,238
USX-Marathon Group, Inc. .......... 26,900 749,838
USX-US Steel Group ................ 8,020 213,533
Unicom Corp., Inc. ................ 20,200 393,900
Unilever NV ....................... 15,000 2,793,750#
Union Camp Corp. .................. 6,500 306,313
Union Carbide Corp. ............... 11,900 526,575
Union Electric Co. ................ 9,600 354,000
Union Pacific Corp. ............... 22,800 1,293,900#
Union Pacific Resources Group,
Inc. ........................... 23,276 622,633
Unisys Corp. ...................... 16,300 103,913*
United Healthcare Corp. ........... 17,200 819,150#
United States Surgical Corp. ...... 5,900 179,950
United Technologies Corp. ......... 22,400 1,685,600
Unocal Corp. ...................... 23,300 888,313
VF Corp. .......................... 5,900 394,563
Viacom, Inc. Class B .............. 33,034 1,094,251*#
WMX Technologies, Inc. ............ 45,200 1,384,250
Wachovia Corp. .................... 15,500 844,750
Wal-Mart Stores, Inc. ............. 214,600 5,981,975#
Walgreen Co. ...................... 22,900 958,938
Warner-Lambert Co. ................ 25,400 2,197,100
Wells Fargo & Co. ................. 8,799 2,500,016
Wendy's International, Inc. ....... 12,000 247,500
Western Atlas, Inc. ............... 5,100 309,188*
Westinghouse Electric Corp. ....... 58,000 1,029,500
Westvaco Corp. .................... 9,650 242,456
Weyerhaeuser Co. .................. 18,700 834,488
Whirlpool Corp. ................... 6,900 328,613
Whitman Corp. ..................... 9,800 240,100
Willamette Industries, Inc. ....... 5,200 325,000
Williams Companies, Inc. .......... 14,735 655,708
Winn-Dixie Stores, Inc. ........... 14,000 462,000
Woolworth Corp. ................... 12,700 296,863*
Worldcom, Inc. .................... 81,020 1,777,376*#
Worthington Industries, Inc. ...... 8,975 172,208
Wrigley (Wm.) Jr. Co. ............. 10,900 636,289
Xerox Corp. ....................... 30,400 1,729,000
------------
TOTAL COMMON STOCKS -- (99.7%)
(Cost $397,529,055) 542,736,753
------------
OTHER ASSETS AND LIABILITIES -- (0.3%)
Other Assets 1,638,640
Other Liabilities (352,121)
------------
1,286,519
------------
NET ASSETS-- (100.0%) $544,023,272
============
- ---------------
(DAGGER) See Note B to Financial Statements.
* Non-Income Producing Securities
# Securities on Loan
See accompanying notes to financial statements.
71
<PAGE>
STATEMENTS OF OPERATIONS THE DFA INVESTMENT TRUST COMPANY
THE U.S. LARGE COMPANY SERIES (AMOUNTS IN THOUSANDS)
FOUR MONTHS YEAR
ENDED ENDED
MARCH 31, NOV. 30,
1997 1996
----------- --------
(UNAUDITED)
INVESTMENT INCOME
Dividends ......................................... $ 3,254 $ 5,468
Interest .......................................... 51 98
Income From Securities Lending .................... 13 7
-------- --------
Total Investment Income ......................... 3,318 5,573
-------- --------
Expenses
Investment Advisory Services ...................... 43 62
Accounting & Transfer Agent Fees .................. 26 67
Custodian's Fee ................................... 48 64
Legal Fees ........................................ 6 71
Audit Fees ........................................ 2 9
Shareholders' Reports ............................. 1 5
Trustees' Fees and Expenses ....................... 1 3
Other ............................................. 2 10
-------- --------
Total Expenses .................................. 129 291
-------- --------
NET INVESTMENT INCOME ........................... 3,189 5,282
-------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on Investment Securities .... 8 (18)
Change in Unrealized Appreciation (Depreciation)
of Investment Securities .......................... (2,042) 63,985
-------- --------
NET GAIN (LOSS) ON INVESTMENT SECURITIES ............. (2,034) 63,967
-------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . $ 1,155 $ 69,249
======== ========
See accompanying notes to financial statements.
72
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS THE DFA INVESTMENT TRUST COMPANY
<TABLE>
<CAPTION>
THE U.S. LARGE COMPANY SERIES (AMOUNTS IN THOUSANDS)
FOUR MONTHS YEAR YEAR
ENDED ENDED ENDED
MARCH 31, NOV. 30, NOV. 30,
1997 1996 1995
----------- -------- --------
(UNAUDITED)
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income ................................ $ 3,189 $ 5,282 $ 1,965
Net Realized Gain (Loss) on Investment Securities .... 8 (18) 172
Change in Unrealized Appreciation (Depreciation) of
Investment Securities .............................. (2,042) 63,985 21,274
--------- --------- ---------
Net Increase in Net Assets Resulting from Operations 1,155 69,249 23,411
--------- --------- ---------
Distributions From:
Net Investment Income ................................ -- (1,215) (1,886)
Net Realized Gains ................................... -- (686) --
--------- --------- ---------
Total Distributions ................................ -- (1,901) (1,886)
--------- --------- ---------
Capital Share Transactions (1):
Shares Issued ........................................ -- 32,324 31,424
Shares Issued in Lieu of Cash Distributions .......... -- 1,744 1,585
Shares Redeemed ...................................... -- (10,535) (6,073)
--------- --------- ---------
Net Increase from Capital Share Transactions ....... -- 23,533 26,936
--------- --------- ---------
Transactions in Interest (1):
Contributions ........................................ 98,515 309,297 --
Withdrawals .......................................... (22,088) (30,855) --
--------- --------- ---------
Net Increase from Transactions in Interest ......... 76,427 278,442 --
--------- --------- ---------
Total Increase ....................................... 77,582 369,323 48,461
--------- --------- ---------
NET ASSETS
Beginning of Period .................................. 466,441 97,118 48,657
--------- --------- ---------
End of Period ........................................ $ 544,023 $ 466,441 $ 97,118
========= ========= =========
(1) SHARES ISSUED AND REDEEMED:
Shares Issued ........................................ -- 2,257 2,738
Shares Issued in Lieu of Cash Distributions .......... -- 121 135
Shares Redeemed ...................................... -- (754) (484)
--------- --------- ---------
-- 1,624 2,389
========= ========= =========
<FN>
- ----------------
(1) Capital Share Transactions and Shares Issued and Redeemed are reported
through May 31, 1996. Transactions in Interest are reported for the period
June 1 through November 30, 1996 and subsequent periods. Effective June 1,
1996, the Series was reorganized as a partnership.
</FN>
</TABLE>
See accompanying notes to financial statements.
73
<PAGE>
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
FINANCIAL HIGHLIGHTS THE DFA INVESTMENT TRUST COMPANY
THE U.S. LARGE COMPANY SERIES
<TABLE>
<CAPTION>
FOUR MONTHS YEAR YEAR YEAR FEB. 8
ENDED ENDED ENDED ENDED TO
MARCH 31, NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1997 1996 1995 1994 1993
----------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period(2) ........ -- $ 13.48 $ 10.11 $ 10.27 $ 10.00
-------- -------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS(2)
Net Investment Income ....................... -- 0.15 0.30 0.28 0.24
Net Gains (Losses) on Securities
(Realized and Unrealized) ................. -- 1.41 3.36 (0.14) 0.26
-------- -------- ------- ------- -------
Total from Investment Operations ....... -- 1.56 3.66 0.14 (0.50)
-------- -------- ------- ------- -------
LESS DISTRIBUTIONS(2)
Net Investment Income ....................... -- (0.16) (0.29) (0.29) (0.23)
Net Realized Gains .......................... -- (0.08) -- (0.01) --
-------- -------- ------- ------- -------
Total Distributions .................... -- (0.24) (0.29) (0.30) (0.23)
-------- -------- ------- ------- -------
Net Asset Value, End of Period(2) .............. -- $14.80 $13.48 $10.11 $10.27
======== ======== ======= ======= =======
Total Return(2) ................................ -- 11.60%# 36.77% 1.30% 5.05%#
Net Assets, End of Period (thousands) .......... $544,023 $466,441 $97,118 $48,657 $37,853
Ratio of Expenses to Average Net Assets ........ 0.08%* 0.12% 0.02%(a) 0.02%(a) 0.02%*(a)
Ratio of Net Investment Income to Average
Net Assets .................................. 1.87%* 2.12% 2.61%(a) 2.83%(a) 2.87%*(a)
Portfolio Turnover Rate ........................ 3.68%* 14.09% 2.38% 8.52% 34.36%*
Average Commission Rate(1) ..................... $0.0200 $0.0216 N/A N/A N/A
<FN>
- ----------------
* Annualized
# Non-Annualized
(1) Computed by dividing the total amount of brokerage commissions paid by the
total shares of investment securities purchased and sold during the period
for which commissions were charged, as required by the SEC for fiscal years
beginning after September 1, 1995.
(2) Items are calculated for the period December 1, 1995 through May 31, 1996.
Effective June 1, 1996, the Series was reorganized as a partnership, and
these items are no longer applicable.
(a) Had certain reimbursements not been in effect the ratios of expenses to
average net assets for the periods ended November 30, 1995, 1994 and 1993
would have been 0.18%, 0.33% and 0.48%, respectively, and the ratios of net
investment income to average net assets for the periods ended November 30,
1995, 1994 and 1993, would have been 2.45%, 2.52% and 2.41%, respectively.
</FN>
</TABLE>
See accompanying notes to financial statements.
74
<PAGE>
NOTES TO FINANCIAL STATEMENTS THE DFA INVESTMENT TRUST COMPANY
A. ORGANIZATION:
The DFA Investment Trust Company (the "Trust") is an open-end management
investment company registered under the Investment Company Act of 1940. At March
31, 1997, The Trust consisted of sixteen investment portfolios. These financial
statements relate solely to The U.S. Large Company Series (the "Series").
On June 1, 1996, the Series was reorganized from an entity taxed as a
corporation to an entity taxed as a partnership for income tax purposes. This
reorganization was accomplished by an amendment to the organization document of
the Series which for income tax purposes was treated as a liquidation of the
Series, immediate distribution of its assets to its sole shareholder at May 31,
1996, which was The U.S. Large Company Portfolio (the "Portfolio") and
subsequent contribution of those assets from the Portfolio, along with a nominal
contribution from the Advisor to this Series to create the partnership. On June
2, 1996, an unrelated investment company contributed assets valued at
$225,957,696 to the Series in exchange for a 63.4% interest in the Series. The
total net assets of the Series increased to $356,632,854 immediately following
this transaction. These transactions are expected to be tax-free events to all
parties involved based on rulings obtained from the Internal Revenue Service.
For financial reporting purposes, the Series continues to exist and as such,
will maintain all of its previous operating history throughout the financial
statements.
Information included within these Notes to Financial Statements as of and
for the period ended March 31, 1997 is unaudited.
B. SIGNIFICANT ACCOUNTING POLICIES:
The following significant accounting policies are in conformity with
generally accepted accounting principles for investment companies. Such policies
are consistently followed by the Trust in preparation of its financial
statements. The preparation of financial statements in accordance with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
1. SECURITY VALUATION: Securities held by the Series which are listed on a
securities exchange and for which market quotations are readily available are
valued at the last quoted sale price of the day, or if there is no such reported
sale, at the mean between the most recent bid and asked prices. Price
information on listed securities is taken from the exchange where the security
is primarily traded. Unlisted securities for which market quotations are readily
available are valued at the mean between the most recent bid and asked prices.
Securities for which quotations are not readily available are valued in good
faith at fair value using methods determined by the Board of Directors.
2. FEDERAL INCOME TAXES: Prior to June 1, 1996, the Series qualified as a
regulated investment company and distributed all of its taxable income.
Accordingly, no provision for federal taxes was required in the financial
statements prior to that time. Effective June 1, 1996, the Series is treated as
a partnership for federal income tax purposes. Any interest, dividends and gains
or losses of the Series will be deemed to have been "passed through" to its
Feeder Funds.
3. REPURCHASE AGREEMENTS: The Series may purchase money market instruments
subject to the seller's agreement to repurchase them at an agreed upon date and
price. The seller will be required on a daily basis to maintain the value of the
collateral subject to the agreement at not less than the repurchase price
(including accrued interest). The agreements are conditioned upon the collateral
being deposited under the Federal Reserve book-entry system or with the Series'
custodian or a third party sub-custodian.
4. OTHER: Security transactions are accounted for on the date the
securities are purchased or sold. Costs used in determining realized gains and
losses on the sale of investment securities are those of specific securities
sold. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Expenses
directly attributable to the Series are directly charged. Common expenses are
allocated using methods determined by the Board of Directors.
75
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) THE DFA INVESTMENT TRUST COMPANY
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. ("DFA") (the "Advisor") provides investment
advisory services to the Series. For the four months ended March 31, 1997 and
the year ended November 30, 1996, the Series' advisory fees were computed daily
and paid monthly to the Advisor based on an effective annual rate of 0.025 of
1%.
Through November 30, 1995, the Advisor had agreed to bear all of the
ordinary operating expenses of the Series except for the advisory fee. Effective
December 1, 1995, the Series is obligated to bear all of its expenses including
its advisory fee.
Certain officers of the Series are also officers, directors and
shareholders of the Advisor.
D. PURCHASES AND SALES OF SECURITIES:
The Series made the following purchases and sales of investment securities
other than U.S. Government Securities (amounts in thousands):
FOUR MONTHS YEAR
ENDED ENDED
MARCH 31, NOV. 30,
1997 1996
----------- --------
(UNAUDITED)
Purchases ................................ $86,637 $282,929
Sales .................................... 6,232 34,231
E. INVESTMENT TRANSACTIONS:
The gross unrealized appreciation and depreciation for financial reporting
and federal income tax purposes of investment securities was as follows (amounts
in thousands):
FOUR MONTHS YEAR
ENDED ENDED
MARCH 31, NOV. 30,
1997 1996
----------- --------
(UNAUDITED)
Gross Unrealized Appreciation ............ $151,843 $150,865
Gross Unrealized Depreciation ............ (6,635) (3,615)
-------- --------
Net ...................................... $145,208 $147,250
======== ========
76
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) THE DFA INVESTMENT TRUST COMPANY
F. LINE OF CREDIT:
In July, 1996, the Trust, together with other DFA-advised portfolios,
entered into a $50 million unsecured line of credit with its domestic custodian
bank. Each portfolio is permitted to borrow between 25% and 331/3% of its net
assets as determined by its investment policies, up to a maximum of $50 million
per portfolio. Borrowings under the line are charged interest at the current
overnight federal funds rate plus a variable rate determined at the date of
borrowing. Each portfolio is individually and not jointly liable for its
particular advances under the line. There is no commitment fee on the unused
portion of the line of credit. For the four months ended March 31, 1997 and year
ended November 30, 1996, the Series borrowed against the line of credit as
follows:
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED NUMBER OF INTEREST
AVERAGE AVERAGE DAYS EXPENSE
INTEREST RATE LOAN BALANCE OUTSTANDING INCURRED
------------- ------------ ----------- --------
<S> <C> <C> <C> <C>
Four Months Ended March 31, 1997
(Unaudited) ..................... 6.00% $2,859,200 5 $ 2,372
Year Ended November 30, 1996 ....... 5.78% 550,235 10 1,502
</TABLE>
There was an outstanding balance of $137,000 under the line of credit at
March 31, 1997. There were no outstanding borrowings under the line of credit at
November 30, 1996.
G. SECURITIES LENDING
Security loans are required at all times to be secured by collateral at
least equal to 102% of the market value of the securities on loan. However, in
the event of default or bankruptcy by the other party to the agreement,
realization and/or retention of the collateral may be subject to legal
proceedings. In the event that the borrower fails to return loaned securities,
and cash collateral being maintained by the borrower is insufficient to cover
the value of loaned securities, and provided such collateral insufficiency is
not the result of investment losses, the lending agent has agreed to pay the
amount of the shortfall to the Series or, at the option of the lending agent,
replace the loaned securities. The market value of securities on loan to brokers
from the Series and the related collateral cash received is as follows:
MARCH 31, NOV. 30,
1997 1996
----------- ------------
(UNAUDITED)
Value of Securities on Loan .................. $59,359,657 $28,816,339
Value of Collateral and Indemnification ...... 62,627,889 29,392,666
77
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
COMPASS CAPITAL FUNDS
[LOGO OMITTED]
Investment Adviser
PNC Asset Management Group, Inc.
Philadelphia, Pennsylvania 19101
Sub-Adviser -- Large Cap Value Equity
Portfolio, Mid-Cap Value Equity Portfolio,
Small Cap Value Equity Portfolio, Select
Equity Portfolio and Balanced Portfolio
Provident Capital Management, Inc.
Philadelphia, Pennsylvania 19103
Sub-Adviser -- Large Cap Growth Equity Portfolio,
Mid-Cap Growth Equity Portfolio, and
Small Cap Growth Equity Portfolio
PNC Equity Advisors Company
Philadelphia, Pennsylvania 19101
Sub-Adviser -- Balanced Portfolio
BlackRock Financial Management, Inc.
New York, New York 10154
Sub-Adviser -- International Equity Portfolio,
and International Emerging Markets Portfolio
CastleInternational Asset Management Limited
Edinburgh, Scotland EH2 3AH
Custodian
PNC Bank, National Association
Philadelphia, Pennsylvania 19101
Co-Administrator and Transfer Agent
PFPC Inc.
Wilmington, Delaware 19809
Co-Administrator and Distributor
Compass Distributors, Inc.
West Conshohocken, Pennsylvania 19428
Co-Administrator
Compass Capital Group, Inc.
New York, New York 10154
Counsel
Drinker Biddle & Reath LLP
Philadelphia, Pennsylvania 19107
Independent Accountants
Coopers & Lybrand, L.L.P.
Philadelphia, Pennsylvania 19103
<PAGE>
COMPASS CAPITAL FUNDS [LOGO OMITTED]
FUND SPECTRUM
COMPASS CAPITAL FUNDS IS A LEADING MUTUAL FUND COMPANY CURRENTLY MANAGING IN
EXCESS OF $12 BILLION IN 30 PORTFOLIOS DESIGNED TO FIT A BROAD RANGE OF
INVESTMENT GOALS. EACH PORTFOLIO IS MANAGED BY RECOGNIZED EXPERTS IN EQUITY,
FIXED INCOME, INTERNATIONAL, AND TAX-FREE INVESTING WHO ADHERE TO A PURE
INVESTMENT STYLE.SM
STOCK PORTFOLIOS
Large Cap Value Equity Small Cap Growth Equity
Large Cap Growth Equity International Equity
Mid-Cap Value Equity International Emerging Markets
Mid-Cap Growth Equity Select Equity
Small Cap Value Equity Index Equity
STOCK & BOND PORTFOLIOS
Balanced
BOND PORTFOLIOS
Low Duration Bond Government Income
Intermediate Government Bond Managed Income
Intermediate Bond International Bond
Core Bond
TAX-FREE BOND PORTFOLIOS
Tax-Free Income New Jersey Tax-Free Income
Pennsylvania Tax-Free Income Ohio Tax-Free Income
MONEY MARKET PORTFOLIOS
Money Market North Carolina Municipal Money Market
U.S. Treasury Money Market Ohio Municipal Money Market
Municipal Money Market Pennsylvania Municipal Money Market
New Jersey Municipal Money Market Virginia Municipal Money Market
SHAREHOLDER PRIVILEGES
24 Hour Account Information
Call us at 1-800-441-7762, 24 hours a day, 7 days a week to get information
about your account balances, recent transactions and share prices. Note:
Institutional and Service Share Class investors should call 1-800-441-7764.
You can also reach us on the Internet through the World Wide Web by
accessing http://www.compassfunds.com.
Exchange Privileges
Should your investment goals change, shareholders in our Investor Class shares
may exchange all or part of their investments into the same share class of any
other portfolio of Compass Capital Funds. (1)
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have
$50 or more automatically deducted from their checking or savings account and
invested in any of the Compass Capital portfolios.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments, of $100 or more from their Compass Capital
portfolios, as long as their account is at least $1,000.
Retirement Plans
Shareholders may make investments in conjunction with individual IRA accounts
or rollover IRAs.
General Information About The Compass Funds
If you would like additional reports or have questions regarding any of the
30 Compass Capital Funds, please call 1-888-4COMPASS.
(1) Compass Capital Funds reserves the right to modify or terminate the exchange
privileges at any time.
<PAGE>
COMPASS CAPITAL FUNDS
[LOGO OMITTED]
PURE INVESTMENT STYLESM
P.O. Box 8907
Wilmington, DE 19899
Shares of the fund are not deposits or obligations of, or guaranteed or endorsed
by PNC Bank, National Association or any other bank and shares are not Federally
insured by, guaranteed by, obligations of or otherwise supported by the U.S.
Government, The Federal Deposit Insurance Corporation, The Federal Reserve
Board, or any other governmental agency. Investments in shares of the fund
involve investment risks, including the possible loss of principal amount
invested.
SR 3/31/97-EP
