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Previous: WM TRUST II, 497, 1998-12-30 |
Next: WM TRUST II, NSAR-B, 1998-12-30 |
<PAGE>
WM TRUST I
WM TRUST II
FORM N-14
PART B
STATEMENT OF ADDITIONAL INFORMATION
October 30, 1998
This Joint Statement of Additional Information (the "SAI") relates to
proposed mergers (the "Mergers") of the Money Market Fund (the "Griffin Money
Market Fund"), the Tax-Free Money Market Fund (the "Griffin Tax-Free Money
Market Fund"), the Short-Term Bond Fund (the "Griffin Short-Term Bond Fund"),
the U.S. Government Income Fund (the "Griffin U.S. Government Fund"), the
Municipal Bond Fund (the "Griffin Municipal Bond Fund"), the California Tax-Free
Fund (the "Griffin California Tax-Free Fund"), the Bond Fund (the "Griffin Bond
Fund"), the Growth & Income Fund (the "Griffin Growth & Income Fund") and the
Growth Fund, (the "Griffin Growth Fund") (each an "Acquired Fund"), each a
series of The Griffin Funds, Inc., a Maryland corporation, into, respectively,
the Money Market Fund (the "WM Money Market Fund"), the Tax-Exempt Money Market
Fund (the "WM Tax-Exempt Money Market Fund"), the Short Term High Quality Bond
Fund (the "WM Short Term Fund"), the U.S. Government Securities Fund (the "WM
U.S. Government Fund"), the Tax-Exempt Bond Fund (the "WM Tax-Exempt Bond
Fund"), the California Municipal Fund (the WM California Fund"), the Income Fund
(the "WM Income Fund"), the Growth & Income Fund (the "WM Growth & Income Fund")
and the Growth Fund (the "WM Growth Fund") (each an "Acquiring Fund"), each a
series of WM Trust I or WM Trust II, each a Massachusetts business trust.
This SAI contains information which may be of interest to shareholders but
which is not included in the Prospectus/Proxy Statement dated _______ __, 1998
(the "Prospectus/Proxy Statement") of the Acquiring Funds which relates to the
Mergers. As described in the Prospectus/Proxy Statement, the Mergers would
involve the transfer of all the assets of each Acquired Fund in exchange for
shares of the corresponding Acquiring Fund and the assumption of all the
liabilities of the Acquired Fund. Each Acquired Fund would distribute the
Acquiring Fund shares it receives to its shareholders in complete liquidation of
the Acquired Fund.
This SAI is not a prospectus and should be read in conjunction with the
Prospectus/Proxy Statement. The Prospectus/Proxy Statement has been filed with
the Securities and Exchange Commission and is available upon request and without
charge by writing to the WM Group of Funds, P.O. Box 5118, Westborough, MA
01581-5118 or by calling 1-800-222-5852.
<PAGE>
Table of Contents
<TABLE>
<CAPTION>
Item Page
- ------ -----
<S> <C>
I. Additional Information about the Acquiring and the Acquired Funds..................
II. Financial Statements...............................................................
</TABLE>
<PAGE>
I. Additional Information about the Acquiring and the Acquired Funds.
Incorporated by reference to the Registration Statements of each of WM Trust I
and WM Trust II on Form N-14 (Accession No.0001021408-98-000819 (WM Trust I) and
Accession No. 0001021408-98-000818 (WM Trust II) filed on October 30, 1998).
II. Financial Statements.
This Statement of Additional Information is accompanied by (a) the Semi-Annual
Report for the period ended April 30, 1998 and the Annual Reports for the year
ended December 31, 1997 of the WM Money Market Fund, WM Tax-Exempt Money Market
Fund, WM U.S. Government Fund, WM Tax-Exempt Bond Fund and WM Income Fund, (b)
the Semi-Annual Report for the period ended April 30, 1998 and the Annual Report
for the year ended October 31, 1997 of the WM Growth & Income Fund, (c) the
Annual Report for the year ended June 30, 1998 of the WM Short Term Fund, WM
California Fund and WM Growth Fund, and (d) the Annual Report for the year ended
October 31, 1997 of the Acquiring Funds (collectively, the "WM Annual Reports"),
which respectively contain historical financial information regarding such
Funds. Such reports have been filed with the Securities and Exchange Commission
and are incorporated herein by reference. The Annual Reports of the Acquired
Funds for the fiscal years ended September 30, 1997 and September 30, 1998 and
the Semi-Annual Report of the Acquired Funds for period ended March 30, 1998
(collectively, the "Griffin Annual Reports") which respectively contain
historical financial information regarding such Funds, have been filed with the
Securities and Exchange Commission and are incorporated herein by reference.
Pro forma financial statements are provided on the following pages for each of
the Acquiring Funds.
<PAGE>
WM MONEY MARKET FUND AND GRIFFIN MONEY MARKET FUND
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
MONEY MONEY PRO FORMA PRO FORMA
MARKET FUND MARKET FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
ASSETS:
Investments at value $ 228,112,250 $462,721,142 $ 690,833,392
---------------------------------------------------------------
Total Investments 228,112,250 462,721,142 - 690,833,392
Cash/Cash Equivalents - 2,784,902 2,784,902
Receivable for dollar roll fee income - -
Dividends and/or interest receivable 856,910 1,753,805 2,610,715
Receivable for Fund shares Sold 1,992,430 1,992,430
Receivable for investment securities sold - -
Unamortized organization costs -
Receivable from investment advisor - -
Prepaid expenses and other assets 91,280 91,280
---------------------------------------------------------------
Total Assets 228,969,160 469,343,559 - 698,312,719
LIABILITIES:
Payable for dollar roll transactions - -
Variation margin payable - -
Reverse repurchase agreements - -
Payable for Fund shares redeemed - 6,317,015 6,317,015
Payable for investment securities purchased - 10,000,000 10,000,000
Investment advisory fee payable 175,564 175,564
Administration fee payable - -
Shareholder servicing and distribution fees payable 77,111 77,111
Dividends payable 929,035 12,673 941,708
Accrued legal and audit fees 4,800 4,800
Accrued Trustees' fees and expenses 2,101 2,101
Accrued registration and filing fees payable 813 813
Due to Custodian - -
Net unrealized depreciation of fwd for curr cts -
Accrued Expenses and other payables 217,835 336,491 554,326
---------------------------------------------------------------
Total Liabilities 1,146,870 16,926,568 - 18,073,438
---------------------------------------------------------------
---------------------------------------------------------------
TOTAL NET ASSETS $ 227,822,290 $452,416,991 $ - $ 680,239,281
===============================================================
NET ASSETS:
Undistributed net investment income/
(accumulated net investment loss/distributions
in excess of net investment income) - - -
Accumulated net realized gain/(loss)
on investments sold, futures contracts,
closed written options, forward foreign currency
contracts and foreign currency transactions $ (196) $ 24,896 $ 24,700
Net unrealized app./(dep.) of investments,
foreign currency, written options, futures
contracts, forward foreign currency contracts
and other assets and liabilities - - -
Paid-in capital 227,822,486 452,392,095 680,214,581
---------------------------------------------------------------
TOTAL NET ASSETS $ 227,822,290 $452,416,991 $ - $ 680,239,281
===============================================================
NET ASSETS:
Class A Shares $ 227,822,290 $354,347,547 $ 582,169,837
===============================================================
Class B Shares $ 3,216,131 $ 3,216,131
===============================================================
Class S Shares $ 7,020,240 $ 7,020,240
===============================================================
Class I Shares $ 87,833,073 $ 87,833,073
===============================================================
SHARES OUTSTANDING:
Class A Shares 227,830,507 354,328,956 (20,170) (A) 582,147,314
===============================================================
Class B Shares 3,215,931 - 3,215,931
===============================================================
Class S Shares 7,019,731 - 7,019,731
===============================================================
Class I Shares 87,827,477 - 87,827,477
===============================================================
NET ASSET VALUE PER SHARE:
Class A Shares $ 1.00 $ 1.00 $ 1.00
===============================================================
Class B Shares $ 1.00 $ 1.00
===============================================================
Class S Shares $ 1.00 $ 1.00
===============================================================
Class I Shares $ 1.00 $ 1.00
===============================================================
</TABLE>
See accompanying notes to pro forma financial statements
- --------------------------------------------------------------------------------
(A) Shares outstanding have been adjusted to reflect the conversion of Griffin
Money Market Fund shares into WM Money Market Fund shares based upon the
net asset value of WM Money Market Fund shares at April 30, 1998.
<PAGE>
WM Money Market Fund and Griffin Money Market Fund
Pro Forma Combined Statement of Operations
For the Period Ended 4/30/98
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
MONEY MONEY PRO FORMA PRO FORMA
MARKET FUND MARKET FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income - - -
Foreign w/holding tax on dividend income -
Interest Income $ 4,281,137 $ 6,246,427 $10,527,564
Fee Income - -
-----------------------------------------------------------
Total Investment Income 4,281,137 6,246,427 $10,527,564
-----------------------------------------------------------
EXPENSES:
Investment Advisory Fees 381,440 492,639 (22,401) (A) 851,678
Administration Fees 152,576 - (152,576) (B) -
Custodian Fees 38,565 26,286 64,851
Legal and audit fees 17,383 4,800 22,183
Trustees' fees and expenses 2,604 2,101 4,705
Amortization of Organization Costs 5,578 - 5,578
Registration and filing fees 6,372 813 7,185
Other 17,663 180,293 197,956
-----------------------------------------------------------
Subtotal 622,181 706,932 (174,977) 1,154,136
Shareholder servicing and distribution Fees
Class A Shares 152,576 67,066 (70,137) (C) 149,505
Class B Shares 4,165 4,165
Class S Shares 9,451 9,451
Interest expense - -
Fees waived and/or expenses absorbed by investment
Advisor (224,885) - 224,885 (D) -
-----------------------------------------------------------
Subtotal 549,872 787,614 (20,229) 1,317,257
Fees Reduced by credits allowed by the custodian (17,619) (17,619)
-----------------------------------------------------------
Net expenses 549,872 769,995 (20,229) 1,299,638
-----------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 3,731,265 5,476,432 20,229 9,227,926
-----------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains from:
Security transactions - 24,896 24,896
Forward foreign currency contracts and
Foreign currency transactions - - -
Futures contracts - - -
Net unrealized appreciation/(depreciation) of:
Securities - - -
Forward foreign currency contracts - - -
Foreign currency, written options, futures
contracts and other assets and liabilities - - -
-----------------------------------------------------------
Net Realized and unrealized Gain/(Loss) on investment - 24,896 - 24,896
-----------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 3,731,265 $ 5,501,328 $ 20,229 $ 9,252,822
===========================================================
</TABLE>
(A) Decrease in management fees for Griffin shareholders to reflect the new fee
structure. Fees are based on .45% of average daily net assets up to
$1,000,000,000 and .40% of average daily net assets over that amount.
(B) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(C) Elimination of Griffin 12b-1 fees and addition of shareholder servicing fee
at a monthly rate of $1.85 per shareholder account.
(D) Fees waived and/or expense absorbed by investment advisor has been
eliminated.
<PAGE>
WM Money Market Fund and Griffin Money Market Fund
Pro Forma Combined Statement of Operations
For the Year Ended 12/31/97
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
MONEY MONEY PRO FORMA PRO FORMA
MARKET FUND MARKET FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income - -
Foreign w/holding tax on dividend income -
Interest Income $11,954,635 $14,420,370 $26,375,005
Fee Income - -
-------------------------------------------------------------
Total Investment Income 11,954,635 14,420,370 - 26,375,005
-------------------------------------------------------------
EXPENSES:
Investment Advisory Fee 1,068,226 1,148,906 (106,855) (A) 2,110,277
Administration Fee 427,290 - (427,290) (B) -
Custodian Fee 111,001 120,711 231,712
Legal and audit fees 32,560 10,537 43,097
Trustees' fees and expenses 8,213 8,499 16,712
Amortization of Org. Cost 17,108 - 17,108
Registration and filing fees 21,017 147,863 168,880
Other 44,272 155,875 200,147
-------------------------------------------------------------
Subtotal 1,729,687 1,592,391 (534,145) 2,787,933
Shareholder servicing and distribution fees:
Class A Shares 427,290 526,840 (179,948) (C) 774,182
Class B Shares 2,660 2,660
Class S Shares - -
Interest expense - -
Fees waived and /or expenses absorbed by
investment advisor (923,459) (198,432) 1,121,891 (D) -
-------------------------------------------------------------
Subtotal 1,233,518 1,923,459 407,798 3,564,775
Fees reduced by credits allowed by the custodian - (88,033) (88,033)
-------------------------------------------------------------
Net expenses 1,233,518 1,835,426 407,798 3,476,742
-------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 10,721,117 12,584,944 (407,798) 22,898,263
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains from:
Security transactions (241) - (241)
Forward foreign currency contracts and
foreign currency transactions - - -
Futures contracts - - -
Net unrealized appreciation/(depreciation) of:
Securities - - -
Forward foreign currency contracts - - -
Foreign currency, written options, futures
contracts and other assets and liabilities - - -
-------------------------------------------------------------
Net Real. And unreal G/(L) on investments (241) - - (241)
-------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $10,720,876 $12,584,944 $ (407,798) $22,898,022
=============================================================
</TABLE>
(A) Decrease in management fees for Griffin shareholders to reflect the new fee
structure. Fees are based on .45% of average daily net assets up to
$1,000,000,000 and .40% of average daily net assets over that amount.
(B) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(C) Elimination of Griffin 12b-1 fees and addition of shareholder servicing fee
at a monthly rate of $1.85 per shareholder account.
(D) Fees waived and/or expense absorbed by investment advisor has been
eliminated.
<PAGE>
Portfolio of Investments
WM Money Market Fund and Griffin Money Market Fund
<TABLE>
<CAPTION>
Pro Forma Combined Portfolio of Investments
Principal Amount April 30, 1998 (Unaudited) Market Value
- ----------------------------------------- --------------------------------------------
WM Griffin WM Griffin
Money Market Money Market Pro Forma Money Market Money Market Pro Forma
Fund Fund Combined Fund Fund Combined
<S> <C> <C> <C> <C> <C> <C>
CERTIFICATE OF DEPOSIT - 2.9%
Bankers Trust New York Corporation,
5,000,000 - 5,000,000 5.970% due 08/28/1998................ 4,999,844 - 4,999,844
5,000,000 - 5,000,000 5.940% due 09/10/1998................ 4,998,946 - 4,998,946
5,000,000 - 5,000,000 PNC Bank National, - - -
- - - 5.25% due 06/05/1998................. 5,000,230 - 5,000,230
- 5,000,000 5,000,000 Morgan Guaranty, 5.71%, 01/08/99....... - 4,998,688 4,998,688
--------------------------------------------
Total Certificates of Deposit 14,999,020 4,998,688 19,997,708
CERTIFICATE OF DEPOSIT (YANKEE) - 7.2%
2,000,000 - 2,000,000 Bank of Nova Scotia, - - -
- - - 5.675% due 03/04/1999................ 1,999,433 - 1,999,433
3,000,000 - 3,000,000 Barclays Bank PLC, - - -
- - - 5.940% due 06/19/1998................ 2,999,135 - 2,999,135
7,000,000 - 7,000,000 Credit Anstalt NU YC, - - -
- - - 5.890% due 11/17/1998................ 7,005,355 - 7,005,355
7,000,000 - 7,000,000 Credit Suisse First Boston, NY, - - -
- - - 5.740% due 01/07/1999................ 7,000,000 - 7,000,000
- 7,000,000 7,000,000 Dresdner U.S. Bank, 5.51%, 01/15/99.... - 6,998,093 6,998,093
5,000,000 - 5,000,000 Societe Generale, New York, - - -
- - - 5.665% due 03/23/1999................ 4,997,101 - 4,997,101
5,000,000 - 5,000,000 Swiss Bank, - - -
- - - 5.825% due 04/29/1999................ 4,998,765 - 4,998,765
- 11,000,000 11,000,000 Swiss Bank Corporation, New York, 5.69%,
01/07/99............................ - 10,997,825 10,997,825
2,000,000 - 2,000,000 Swiss Bank Corporation, New York, - - -
- - - 5.820% due 06/04/1998................ 2,000,424 - 2,000,424
--------------------------------------------
Total Certificates of Deposit (Yankee) 31,000,213 17,995,918 48,996,131
COMMERCIAL PAPER (YANKEE) - 18.0%
American Honda Finance Corporation, - - -
7,000,000 - 7,000,000 5.520% due 05/15/1998................ 6,984,973 - 6,984,973
6,500,000 - 6,500,000 5.500% due 05/21/1998................ 6,480,139 - 6,480,139
3,700,000 - 3,700,000 British Gas Capital Inc., - - -
- - - 5.520% due 08/24/1998................ 3,634,747 - 3,634,747
7,500,000 - 7,500,000 Caisse D'Amortissement de la
ette Sociale (CADES) - - -
- - - 5.450% due 08/03/1998................ 7,393,256 - 7,393,256
- - - Den Norske Stats Oljeselskap A/S, - - -
5,000,000 - 5,000,000 5.500% due 05/18/1998................ 4,987,014 - 4,987,014
7,500,000 - 7,500,000 5.520% due 06/04/1998................ 7,460,900 - 7,460,900
- 11,000,000 11,000,000 Deustche Bank, 5.50%, 06/12/98 (D)..... - 10,929,481 10,929,481
8,000,000 - 8,000,000 Halifax Building Society, - - -
- - - 5.690% due 05/15/1998................ 7,982,308 - 7,982,308
- - - Sharp Electronics Corporation, - - -
5,000,000 - 5,000,000 5.570% due 05/06/1998................ 4,996,132 - 4,996,132
5,000,000 - 5,000,000 5.550% due 05/14/1998................ 4,989,979 - 4,989,979
5,000,000 - 5,000,000 Societe Generale North America, Inc., - - -
- - - 5.510% due 05/27/1998................ 4,980,103 - 4,980,103
- - - Toshiba International, - - -
1,800,000 - 1,800,000 5.550% due 05/07/1998................ 1,798,335 - 1,798,335
5,000,000 - 5,000,000 5.550% due 05/26/1998................ 4,980,729 - 4,980,729
- - - Toyota Motor Credit Corporation, - - -
- 11,000,000 11,000,000 5.46%, 06/24/98 (D).................. - 10,909,910 10,909,910
- - - Toyota Motor Credit Corporation, - - -
4,080,000 - 4,080,000 5.550% due 05/01/1998................ 4,080,000 - 4,080,000
5,000,000 - 5,000,000 5.500% due 05/18/1998................ 4,987,014 - 4,987,014
3,500,000 - 3,500,000 5.500% due 05/21/1998................ 3,489,306 - 3,489,306
10,500,000 - 10,500,000 5.510% due 05/29/1998................ 10,454,982 - 10,454,982
- 11,000,000 11,000,000 UBS Financial, 5.48%, 06/02/98 (D)..... - 10,946,418 10,946,418
--------------------------------------------
Total Commercial Paper (Yankee) 89,679,917 32,785,809 122,465,726
</TABLE>
<PAGE>
WM Money Market Fund and Griffin Money Market Fund
<TABLE>
<CAPTION>
Principal Amount Pro Forma Combined Portfolio of Investments Market Value
- ----------------------------------------- ------------------------------------------
WM Griffin April 30, 1998 (Unaudited) WM Griffin
Money Market Money Market Pro Forma Money Market Money Market Pro Forma
Fund Fund Combined Fund Fund Combined
<S> <C> <C> <C>
COMMERCIAL PAPER (DOMESTIC) - 51.9%
- 11,000,000 11,000,000 Abbey National, 5 49%, 07/02/98 (D) - 10,895,995 10,895,995
- 11,000,000 11,000,000 American Express Credit, 5.52%, 06/18/98 (D) - 11,000,000 11,000,000
- - - American General Finance Corporation, - - -
- 11,000,000 11,000,000 5.55%, 05/12/98 (D)............................. - 11,000,000 11,000,000
7,500,000 - 7,500,000 Bear Sterns Companies Inc., - - -
- - - 5.550% due 05/08/1998........................ 7,491,906 - 7,491,906
- - - Bell Atlantic Financial Services Inc., - - -
- 11,000,000 11,000,000 5.48%, 05/19/98 (D)............................. - 10,969,860 10,969,860
5,000,000 - 5,000,000 Beneficial Corporation, - - -
- - - 5.520% due 06/16/1998........................ 4,964,733 - 4,964,733
- - - Caterpillar Finance Corporation, - - -
- 11,000,000 11,000,000 5.44%, 07/23/98 (D)............................. - 10,862,036 10,862,036
- - - Caterpillar Financial Services Inc., - - -
7,500,000 - 7,500,000 5.520% due 05/14/1998........................ 7,485,050 - 7,485,050
- 11,000,000 11,000,000 Chevron Oil Finance, 5.50%, 06/02/98 (D)........ - 11,000,000 11,000,000
- - - Chrysler Financial Corporation, - - -
5,000,000 - 5,000,000 5.510% due 05/18/1998........................ 4,986,990 - 4,986,990
7,500,000 - 7,500,000 5.530% due 06/11/1998........................ 7,452,765 - 7,452,765
2,000,000 - 2,000,000 Columbia University, - - -
- - - 5.530% due 05/08/1998........................ 1,997,849 - 1,997,849
5,000,000 - 5,000,000 Dean Witter Discover & Company, - - -
- - - 6.000% due 08/10/1998........................ 5,001,083 - 5,001,083
5,000,000 - 5,000,000 Deere & Company, - - -
- - - 5.500% due 05/15/1998........................ 4,989,306 - 4,989,306
- 11,000,000 11,000,000 Dupont E.I. Nemour, 5.47%, 05/26/98 (D)......... - 10,958,215 10,958,215
- 11,000,000 11,000,000 Emerson Electric, 5.47%, 06/04/98 (D) - 10,943,173 10,943,173
- 11,100,000 11,100,000 First of America Bank, 5.52%, 05/11/98 (D)...... - 11,100,000 11,100,000
- - - Ford Motor Credit Company, - - -
3,500,000 - 3,500,000 5.510% due 05/13/1998........................ 3,493,572 - 3,493,572
4,900,000 - 4,900,000 5.500% due 05/20/1998........................ 4,885,776 - 4,885,776
- - - Ford Motor Credit Corporation, - - -
- 11,000,000 11,000,000 5.55%, 05/12/98 (D)............................. - 11,000,000 11,000,000
- 11,500,000 11,500,000 GECC, 5.52%, 06/05/98 (D) - 11,500,000 11,500,000
5,000,000 - 5,000,000 General Electric Capital Corporation, - - -
- - - 5.500% due 05/14/1998........................ 4,990,069 - 4,990,069
- - - General Electric Company, - - -
5,000,000 - 5,000,000 5.530% due 05/18/1998........................ 4,986,943 - 4,986,943
8,000,000 - 8,000,000 5.380% due 08/19/1998........................ 7,866,725 - 7,866,725
- - - General Motors Acceptance Corporation, - - -
5,000,000 - 5,000,000 5.510% due 05/08/1998........................ 4,994,643 - 4,994,643
5,000,000 - 5,000,000 5.510% due 05/18/1998........................ 4,986,990 - 4,986,990
- - - General Motors Acceptance Corporation, - - -
- 11,000,000 11,000,000 5.53%, 06/19/98 (D)............................. - 11,000,000 11,000,000
10,000,000 - 10,000,000 Goldman Sachs & Company, - - -
- - - 5.510% due 05/15/1998........................ 9,978,592 - 9,978,592
5,000,000 - 5,000,000 Hitachi America Limited, - - -
- - - 5.520% due 05/13/1998........................ 4,990,800 - 4,990,800
12,000,000 - 12,000,000 Household Finance Corporation, - - -
- - - 5.520% due 05/22/1998........................ 11,961,378 - 11,961,378
- - - International Business Machines Credit - - -
- 11,000,000 11,000,000 Corporation, 5.44%, 06/19/98 (D)................ - 10,918,551 10,918,551
7,500,000 - 7,500,000 International Business Machines Credit Corporation, - - -
- - - 5.500% due 05/14/1998........................ 7,485,104 - 7,485,104
- - - International Lease Finance Corporation, - - -
3,000,000 - 3,000,000 5.520% due 05/06/1998........................ 2,997,700 - 2,997,700
4,234,000 - 4,234,000 6.500% due 07/15/1998........................ 4,240,722 - 4,240,722
5,000,000 - 5,000,000 John Deere Capital Corp. - - -
5.500% due 05/22/1998........................ 4,983,958 - 4,983,958
Merrill Lynch & Company Inc., - - -
5,000,000 - 5,000,000 5.500% due 06/15/1998........................ 4,965,313 - 4,965,313
7,500,000 - 7,500,000 Monsanto Company, - - -
5.500% due 05/14/1998........................ 7,485,104 - 7,485,104
7,500,000 - 7,500,000 Morgan Stanley, Dean Witter, Discover, - - -
5.500% due 05/27/1998........................ 7,470,208 - 7,470,208
Sears Roebuck Acceptance Corporation, - - -
5,000,000 - 5,000,000 5.520% due 05/20/1998........................ 4,985,433 - 4,985,433
7,500,000 - 7,500,000 5.540% due 06/15/1998........................ 7,448,063 - 7,448,063
8,700,000 - 8,700,000 Trident Capital Inc., - - -
5.660% due 06/12/1998(C)..................... 8,642,589 - 8,642,589
Weyerhauser Real Estate Company, - - -
5,000,000 - 5,000,000 5.550% due 05/04/1998........................ 5,000,000 - 5,000,000
5,000,000 - 5,000,000 5.500% due 05/22/1998........................ 4,983,958 - 4,983,958
8,700,000 - 8,700,000 Windmill Funding Corporation, - - -
5.090% due 05/15/1998(C)..................... 8,626,231 - 8,626,231
Xerox Credit Corporation, 5.46%, - - -
- 8,000,000 8,000,000 05/04/98 (D).................................... - 7,996,360 7,996,360
7,500,000 - 7,500,000 Xerox Corporation, - - -
- - - 5.500% due 05/21/1998........................ 7,477,083 - 7,477,083
7,500,000 - 7,500,000 Xerox Credit Corporation, - - -
5.510% due 06/12/1998........................ 7,451,788 - 7,451,788
-----------------------------------------
Total Commercial Paper (Domestic) 201,748,424 151,144,190 352,892,614
U.S. GOVERNMENT AGENCY OBLIGATIONS - 9.4%
Federal Farm Credit Bank
$5,000,000 - $ 5,000,000 5.510% due 08/03/1998........................... $ 5,000,000 - $ 5,000,000
Federal Home Loan Bank (FHLB)
3,000,000 - 3,000,000 5.645% due 10/02/1998........................... 2,997,606 - 2,997,606
1,500,000 - 1,500,000 5.605% due 01/29/1999........................... 1,500,000 - 1,500,000
2,500,000 - 2,500,000 5.625% due 03/02/1999........................... 2,500,000 - 2,500,000
5,000,000 - 5,000,000 5.605% due 03/12/1999........................... 4,999,461 - 4,999,461
3,000,000 - 3,000,000 5.650% due 03/12/1999........................... 3,000,000 - 3,000,000
2,000,000 - 2,000,000 5.625% due 03/16/1999........................... 2,000,000 - 2,000,000
3,000,000 - 3,000,000 5.700% due 03/17/1999........................... 3,000,000 - 3,000,000
7,500,000 - 7,500,000 5.750% due 04/27/1999........................... 7,500,000 - 7,500,000
Federal Home Loan Mortgage Corporation (FHLMC)
2,529,000 - 2,529,000 Discount Note, 5.430% due 05/28/1998............ 2,518,389 - 2,518,389
- $16,150,000 16,150,000 5.35% due 05/01/1998............................ - $ 16,150,000 16,150,000
Federal National Mortgage Association (FNMA)
1,000,000 - 1,000,000 Discount Note, 5.410% due 06/17/1998............ 992,773 - 992,773
7,500,000 - 7,500,000 Discount Note, 5.530% due 03/11/1999............ 7,492,375 - 7,492,375
2,000,000 - 2,000,000 Floating Rate Note, 5.538% due 10/20/1998(B).... 1,999,586 - 1,999,586
2,000,000 - 2,000,000 Floating Rate Note, 5.588% due 11/04/1998(B).... 1,999,273 - 1,999,273
U.S. Government Agency Obligations.............. 47,499,463 16,150,000 63,649,463
MEDIUM TERM NOTE - 10.1%
3,000,000 - 3,000,000 Bank of America, Note........................... - - -
5.630% due 02/26/1999........................ 2,999,046 - 2,999,046
5,000,000 - 5,000,000 Bank Boston NA, FRN............................. - - -
- - - 5.500% due 10/06/1998(B)..................... 4,998,826 - 4,998,826
9,000,000 - 9,000,000 Bayerische Landesbank Gironzentrale, FRN........ - - -
- - - 5.490% due 06/26/1998(B)..................... 8,998,903 - 8,998,903
- - - Bear Sterns Companies Inc., FRN................. - - -
5,000,000 - 5,000,000 5.626% due 10/15/1998(B)..................... 5,000,000 - 5,000,000
5,000,000 - 5,000,000 5.950% due 10/15/1998(B)..................... 5,000,000 - 5,000,000
1,000,000 - 1,000,000 Caterpillar Financial Services Inc.............. - - -
- - - 6.770% due 03/15/1999........................ 1,009,444 - 1,009,444
3,000,000 - 3,000,000 General Electric Capital Corporation............ - - -
- - - 5.000% due 09/10/1998........................ 2,992,001 - 2,992,001
1,000,000 - 1,000,000 General Motors Acceptance Corporation........... - - -
- - - 6.150% due 05/11/1998........................ 1,000,052 - 1,000,052
2,883,000 - 2,883,000 International Lease Finance Corporation......... - - -
- - - 6.220% due 10/01/1998........................ 2,888,364 - 2,888,364
9,000,000 - 9,000,000 Keybank National, FRN........................... - - -
- - - 5.550% due 07/31/1998(B)..................... 8,998,444 - 8,998,444
4,000,000 - 4,000,000 Keystone Group, Sr. Note, (Pre-Refunded)........ - - -
- - - 9.750% due 09/01/2003........................ 4,210,980 - 4,210,980
- - - Merrill Lynch & Company, Inc.................... - - -
5,000,000 - 5,000,000 5.606% due 07/28/1998, FRN (B)............... 5,000,000 - 5,000,000
2,000,000 - 2,000,000 5.638% due 08/03/1998, FRN (B)............... 2,000,000 - 2,000,000
5,000,000 - 5,000,000 5.790% due 04/28/1998........................ 5,000,000 - 5,000,000
1,000,000 - 1,000,000 5.905% due 10/21/1998........................ 1,000,112 - 1,000,112
- 5,000,000 5,000,000 Norwest Corporation, 6.00%, 10/13/1998.......... - 5,003,180 5,003,180
- - - Toyota Motor Credit Corporation................. - - -
2,500,000 - 2,500,000 5.875% due 06/26/1998........................ 2,500,539 - 2,500,539
-----------------------------------------
Total Medium Term Notes......................... 63,596,711 5,003,180 68,599,891
MUNICIPAL BOND - 1.2%
5,000,000 - 5,000,000 Texas State, Veterans Land Board, Taxable Bonds - - -
5.700% due 12/01/1998........................ 4,999,394 - 4,999,394
3,000,000 - 3,000,000 Everett Clinic PS............................... - - -
5.670% due 12/01/2018(A)..................... 3,000,000 - 3,000,000
-----------------------------------------
Total Municipal Bonds........................... 7,999,394 - 7,999,394
REPURCHASE AGREEMENT - 0.9%
6,198,000 - 6,198,000 Agreement with Goldman Sachs, 5.30% dated
4/30/98, to be repurchased
at $6,201,285 on 5/1/98, collateralized by
$6,161,746 U.S. Treasury Note,
6.50% due 8/15/05 (Market Value $6,518,153).. 6,198,000 - 6,198,000
- 34,466 34,466 State Street Bank & Trust Co., Master
Repurchase Agreement, 4.25%, dated
4/30/98 due 5/1/98, Collateralized
by U.S. Government Securities
(delivery value $34,466)..................... - 34,465 34,465
-----------------------------------------
Total Repurchase Agreements..................... 6,198,000 34,465 6,232,465
-----------------------------------------
TOTAL INVESTMENTS - 101.6% (COST $) $462,721,142 $228,112,250 $690,833,392
OTHER ASSETS AND LIABILITIES, NET (1.6%) (10,304,151) (281,939) (10,586,090)
-----------------------------------------
TOTAL NET ASSETS - 100.0% $452,416,991 $227,830,311 $680,247,302
-----------------------------------------
</TABLE>
(A) Variable rate securities payable upon not more than seven calendar days'
notice. The interest rate shown reflects the rate currently in effect.
(B) Floating rate security whose interest rate is reset periodically based on
an index.
(C) Securities exempt from registration under Section 4(2) of the Securities
Act of 1993, as amended. These securities may be resold to qualified
institutional buyers.
(D) Rate represents annualized yield to maturity at April 30, 1998.
<PAGE>
WM MONEY MARKET FUND & GRIFFIN MONEY MARKET FUND
Notes to Pro Forma Combined Financial Statements (Unaudited)
1. Basis of Combination
The pro forma combined financial statements reflect the pro forma combined
financial position of the WM Money Market Fund and the Griffin Money Market
Fund at April 30, 1998 and the pro forma combined results of operations for
the year ended December 31, 1997 and the four month period ended April 30,
1998 as though the reorganization had occurred on January 1, 1997.
The pro forma combined financial statements are presented for the
information of the reader and may not necessarily be representative of how
the pro forma combined financial statements would have appeared had the
reorganization actually occurred.
The Pro Forma Combined Portfolio of Investments, Statement of Assets and
Liabilities, and the Statements of Operations should be read in conjunction
with the historical financial statements of the funds which are
incorporated by reference in the Statement of Additional Information.
The pro forma combined statements give effect to the proposed transfer of
the assets and stated liabilities of the Griffin Money Market Fund in
exchange for shares of WM Money Market Fund. Under generally accepted
accounting principles, the historical cost of investment securities will be
carried forward to the surviving entity.
The pro forma combined statements do not reflect the expenses of either
fund in carrying out its obligations under the proposed Agreement and Plan
of Reorganization.
2. Pro Forma Combined Portfolio of Investments
Securities held by the two funds have been combined in the accompanying
Combined Portfolio of Investments. Securities are valued using the pricing
procedures and policies of the respective Acquiring Fund or Acquired Fund,
as applicable. For more information, see the WM Annual Reports or the
Griffin Annual Reports. Historical cost amounts represent the combined cost
basis of the securities.
3. Pro Forma Combined Statements of Assets and Liabilities
Shares outstanding have been adjusted to reflect the conversion of Griffin
Money Market Fund shares into WM Money Market Fund shares based upon the
net asset value of the WM Money Market Fund shares at April 30, 1998.
<PAGE>
WM Tax-Exempt Money Market Fund and Griffin Tax-Free Money Market Fund
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
TAX-FREE TAX-EXEMPT
MONEY MONEY PRO FORMA PRO FORMA
MARKET FUND MARKET FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
ASSETS:
Investments at value $26,518,425 $28,730,172 $55,248,597
-
------------------------------------------------------------
Total Investments 26,518,425 28,730,172 - 55,248,597
Cash/Cash Equivalents 609 211,908 212,517
Receivable for dollar roll fee income - -
Dividends and/or interest receivable 301,676 274,864 576,540
Receivable for Fund shares Sold 138,756 138,756
Receivable for investment securities sold - -
Unamortized organization costs -
Prepaid expenses and other assets 15,887 15,887
------------------------------------------------------------
Total Assets 26,820,710 29,371,587 - 56,192,297
LIABILITIES:
Payable for dollar roll transactions - -
Variation margin payable - -
Reverse repurchase agreements - -
Payable for Fund shares redeemed - 230,658 230,658
Payable for investment securities purchased - 1,691,103 1,691,103
Investment advisory fee payable 10,620 10,620
Administration fee payable -
Shareholder servicing and distribution fees payable 2,284 2,284
Dividends payable 64,923 79,434 144,357
Accrued legal and audit fees 5,235 5,235
Accrued transfer agent fees - -
Accrued Trustees' fees and expenses 5,182 5,182
Accrued registration and filing fees payable 136 136
Due to Custodian -
Net unrealized depreciation of fwd for curr cts - -
Accrued Expenses and other payables 32,626 5,172 37,798
------------------------------------------------------------
Total Liabilities 97,549 2,029,824 - 2,127,373
------------------------------------------------------------
------------------------------------------------------------
TOTAL NET ASSETS $26,723,161 $27,341,763 - $54,064,924
============================================================
NET ASSETS:
Undistributed net investment income/
(accumulated net investment loss/distributions
in excess of net investment income) $ - $ - $ -
Accumulated net realized gain/(loss)
on investments sold, futures contracts,
closed written options, forward foreign currency
contracts and foreign currency transactions (4,692) - (4,692)
Net unrealized app./(dep.) of investments,
foreign currency, written options, futures
contracts, forward foreign currency contracts
and other assets and liabilities - - -
Paid-in capital 26,727,853 27,341,763 54,069,616
------------------------------------------------------------
TOTAL NET ASSETS $26,723,161 $27,341,763 - $54,064,924
============================================================
NET ASSETS:
Class A Shares $26,723,161 $27,329,668 $54,052,829
============================================================
Class B Shares $ 12,095 $ 12,095
============================================================
SHARES OUTSTANDING:
Class A Shares 26,723,161 27,329,668 (13,713) (A) 54,052,829
============================================================
Class B Shares 12,095 - 12,095
============================================================
NET ASSET VALUE PER SHARE:
Class A Shares $ 1.00 $ 1.00 $ 1.00
============================================================
Class B Shares $ 1.00 $ 1.00
============================================================
</TABLE>
See accompanying notes to pro forma financial statements
- --------------------------------------------------------------------------------
(A) Shares outstanding have been adjusted to reflect the conversion of Griffin
Tax-Free Money Market Fund shares into WM Tax-Exempt Money Market Fund
shares based upon the net asset value of WM Tax-Exempt Money Market Fund
shares at April 30, 1998.
<PAGE>
WM Tax-Exempt Money Market Fund and
Griffin Tax-Free Money Market Fund
Pro Forma Combined Statement of Operations
For the Period Ended 4/30/98
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
TAX-FREE TAX-EXEMPT PRO FORMA PRO FORMA
MONEY MARKET MONEY MARKET ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income $ - $ - $ - $ -
Foreign Withholding Tax on Dividend Income - - - -
Interest Income 267,938 367,152 - 635,090
Fee Income - - - -
-----------------------------------------------------------
Total Investment Income 267,938 367,152 - 635,090
-----------------------------------------------------------
EXPENSES:
Investment Advisory Fees 37,414 45,025 (3,414) (A) 79,025
Administration Fees 14,966 - (14,966) (B) -
Custodian Fees 9,243 2,683 - 11,926
Legal and Audit Fees 9,018 4,993 - 14,011
Trustees' Fees and Expenses 2,604 4,823 - 7,427
Amortization of Organization Costs 5,577 - - 5,577
Registration and Filing Fees 1,257 4,694 - 5,951
Other 1,925 6,589 - 8,514
-----------------------------------------------------------
Subtotal 82,004 68,807 (18,380) 132,431
Shareholder Servicing and Distribution Fees
Class A Shares 14,966 6,787 (6,730) (C) 15,023
Class B Shares - 56 - 56
Class S Shares - - - -
Interest Expense - - - -
Fees Waived and/or Expenses Absorbed by Investment
Advisor (43,451) (19,515) 12,748 (D) (50,218)
-----------------------------------------------------------
Subtotal 53,519 56,135 (12,362) 97,292
Fees Reduced by Credits Allowed by the Custodian - (705) - (705)
-----------------------------------------------------------
Net Expenses 53,519 55,430 (12,362) 96,587
-----------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 214,419 311,772 12,362 538,503
-----------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains/(Loss) from:
Security Transactions - - - -
Forward Foreign Currency Contracts and
Foreign Currency Transactions - - - -
Futures Contracts - - - -
Net Unrealized Appreciation/(Depreciation) of:
Securities - - - -
Forward Foreign Currency Contracts - - - -
Foreign Currency, Written Options, Futures -
Contracts and Other Assets and Liabilities - - - -
-----------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investment - - - -
-----------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 214,419 $ 311,722 $ 12,362 $ 538,503
===========================================================
</TABLE>
(A) Decrease in management fees for Griffin shareholders to reflect the new fee
structure. Fees are based on .45% of average daily net assets up to
$100,000,000 and .40% of average daily net assets over that amount.
(B) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(C) Elimination of Griffin 12b-1 fees and addition of shareholder servicing
fee at a monthly rate of $1.85 per shareholder account.
(D) Fees waived and/or expense absorbed by investment advisor adjusted to .14%
of average daily net assets.
<PAGE>
WM Tax-Exempt Money Market Fund and Griffin Tax-Free
Money Market Fund
Pro Forma Combined Statement of Operations
For the Year Ended 12/31/97
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
TAX-FREE TAX-EXEMPT
MONEY MONEY PRO FORMA PRO FORMA
MARKET FUND MARKET FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income $ - $ - $ - $ -
Foreign w/holding tax on dividend income - - - -
Interest Income 562,713 1,186,528 - 1,749,241
Fee Income - - - -
--------------------------------------------------------------------------------
Total Investment Income 562,713 1,186,528 - 1,749,241
--------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fee 75,566 143,965 (6,670) (A) 212,861
Administration Fee 30,226 - (30,226) (B) -
Custodian Fee 26,015 13,859 - 39,874
Legal and audit fees 12,623 6,331 - 18,954
Trustees' fees and expenses 8,213 8,499 - 16,712
Amortization of Org. Cost 17,107 - - 17,107
Registration and filing fees 2,007 18,754 - 20,761
Other 4,865 11,996 - 16,861
--------------------------------------------------------------------------------
Subtotal 176,622 203,404 (36,896) 343,130
Shareholder servicing and distribution fees:
Class A Shares 30,226 26,630 (5,517) (C) 51,339
Class B Shares - 149 - 149
Class S Shares - - - -
Interest expense - - - -
Fees waived and /or expenses absorbed by
investment advisor (101,804) (45,307) 20,408 (D) (126,703)
--------------------------------------------------------------------------------
Subtotal 105,044 184,876 (22,005) 267,915
Fees reduced by credits allowed by the custodian - (7,751) - (7,751)
--------------------------------------------------------------------------------
Net expenses 105,044 177,125 (22,005) 260,164
-------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 457,669 1,009,403 22,005 1,489,077
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains from:
Security transactions - - - -
Forward foreign currency contracts and
foreign currency transactions - - - -
Futures contracts - - - -
Net unrealized appreciation/(depreciation) of:
Securities - - - -
Forward foreign currency contracts - - - -
Foreign currency, written options, futures
contracts and other assets and liabilities - - - -
--------------------------------------------------------------------------------
Net Real. And unreal G/(L) on investments - - - -
--------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 457,669 $ 1,009,403 $ 22,005 $ 1,489,077
================================================================================
</TABLE>
(A) Decrease in management fees for Griffin shareholders to reflect the new
fee structure. Fees are based on .45% of average daily net assets up to
$1,000,000,000 and .40% of average daily net assets over that amount.
(B) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(C) Elimination of Griffin 12b-1 fees and addition of shareholder servicing
fee at a monthly rate of $1.85 per shareholder account.
(D) Fees waived and/or expense absorbed by investment advisor adjusted to
reflect current WM Tax-exempt Money Market waivers.
<PAGE>
<TABLE>
<CAPTION>
WM Tax-Exempt Money Market Fund and Griffin Tax-Free Money Market Fund
Pro Forma Combined Portfolio of Investments
Principal Amount April 30, 1998 (Unaudited) Market Value
- ------------------------------------------- -------------------------------------------
WM Tax-Exempt Griffin Tax-Free WM Tax-Exempt Griffin Tax-Free
Money Market Money Market Pro Forma Money Market Money Market Pro Forma
Fund Fund Combined Fund Fund Combined
<S> <C> <C> <C> <C> <C> <C>
STATE AND MUNICIPAL SECURITIES - (100.9%)
ALABAMA
500,000 - 500,000 Alabama State Special Care Authority
Facilities Financing (Montgomery Hospital
Depreciable Assets), Series 1985, 4.10% ,
due 4/01/2015, (A) 500,000 - 500,000
500,000 - 500,000 Athens, AL, Industrial Development Board - - -
(Coilplus, Inc. Project), 500,000 - 500,000
Series 1984, 4.75% , due 9/19/1999, (A) --------------------------------------
1,000,000 _ 1,000,000
ALASKA
Alaska Municipal Power
_ 340,000 340,000 5.00%, 12/01/26............. - 340,000 340,000
ARIZONA
Phoenix, Arizona Industrial Development
_ 300,000 300,000 Authority -
4.00%, 10/15/06.......... - 300,000 300,000
300,000 - 300,000 Arizona State Health Facilities Authority 300,000 - 300,000
Revenue (Pooled Loan Program), Series 1985,
4.10%, due 10/01/2015, (A)
500,000 - 500,000 Tempe, AZ, Unified High School District
Unlimited Tax Note, 14.35%, - - -
due 7/01/1998 508,457 - 508,457
--------------------------------------
808,457 300,000 1,108,457
CALIFORNIA
- California State Revenue Anticipation
- 1,000,000 1,000,000 Notes, 4.50%, 06/30/98 .......... - 1,001,502 1,001,502
- Los Angeles County, California Tax & Revenue - - -
- Anticipation Notes, Series A, - - -
- 600,000 600,000 4.50%, 06/30/98 ......................
- Santa Clara Tax & Revenue Anticipation Notes, - 600,617 600,617
- 800,000 800,000 4.75%, 10/01/98 ...................... - 802,880 802,880
500,000 - 500,000 Auburn, CA, Unified School District, 1997
Tax and Revenue
- - - Anticipation Notes, 4.25%, due 10/13/1998 500,932 500,932
300,000 - 300,000 Los Angeles Regional Airport (American
Airlines/LA International), - - -
- - - Series E, 3.95%, due 12/01/2024, (A) 300,000 - 300,000
100,000 - 100,000 Los Angeles Regional Airport (American
Airlines/LA International), - - -
- - - Series G, 3.95%, due 12/01/2024, (A) 100,000 - 100,000
200,000 - 200,000 Los Angeles Regional Improvement
Corporation Sublease Revenue (LA - - -
- - - International), LAX2, 3.95%, due
12/01/2025, (A) 200,000 - 200,000
245,000 - 245,000 Monterey County, CA, Natividad Medical
Center, Series E, - - -
- - - 4.00%, due 8/01/1998 245,182 - 245,182
500,000 - 500,000 Oxnard, CA, School District 1997 Tax and
Revenue Anticipation Notes, - - -
- - - 4.50%, due 8/13/1998 500,891 - 500,891
--------------------------------------
1,847,005 2,404,999 4,252,004
COLORADO
210,000 - 210,000 University of Northern Colorado, Refunding
Revenue Bonds (Auxiliary Facilities
- - - System) Series A, 3.50%, due 6/1/1998 210,000 _ 210,000
DISTRICT OF COLUMBIA
1,500,000 - 1,500,000 District of Columbia Revenue Bonds,
Georgetown University, Series B
- - - 3.75%, due 4/1/1999 1,500,000 _ 1,500,000
FLORIDA
- - - Citrus Park Community Development District,
- 600,000 600,000 Capital Improvements, 3.35%, 11/01/16..... - 600,000 600,000
- - - State of Florida Board of Regents
University System - - -
- 470,000 470,000 Improvement Revenue, 7.00%, 07/01/98 ..... - 472,718 472,187
--------------------------------------
- 1,072,187 1,072,187
GEORGIA
- - - Municipal Electric Authority of Georgia,
- 700,000 700,000 5.00%, 06/01/20......... - 700,000 700,000
- - - Municipal Gas Authority of Georgia, - - -
- 1,000,000 1,000,000 Gas Revenue, 3.50%, 07/08/98 ........... - 1,000,000 1,000,000
200,000 - 200,000 Albany/Dougherty County Hospital Authority,
GA, Hospital
- - - Revenue Anticipation Certificates, Series 1990A, - - -
- - - 6.70%, due 9/01/1998. 201,834 - 201,834
200,000 - 200,000 Georgia State Unlimited General Obligation,
Series C, - - -
- - - 4.50%, due 8/01/1998 200,328 - 200,328
--------------------------------------
402,162 1,700,000 2,102,162
ILLINOIS
- - - Illinois Development Financing Authority
- 800,000 800,000 Revenue, 5.00%, 09/01/08 ............... - 800,000 800,000
- - - Illinois Health System, Sherman Health - - -
- 720,000 720,000 Facilities Revenue, 3.90%, 08/01/98 .... - 720,000 720,000
- - - Will County, Illinois Exempt Facilities - - -
- 800,000 800,000 Revenue, 5.00%, 03/01/28 ............... - 800,000 800,000
400,000 - 400,000 Chicago O'Hare International Airport
General Airport Second Lien Revenue - - -
- - - Bonds, 1984 Series B, 4.10%, due 1/01/2015,
(A) 400,000 - 400,000
800,000 - 800,000 Illinois State Health Facilities Authority
(Hospital Sisters Services), - - -
800,000
- - - Series 1985E, 3.70%, due 12/01/2015, (a) 800,000 - 800,000
200,000 - 200,000 Illinois Unlimited Tax General Obligation,
Series of February 1997, - - -
- - - 4.75%, due 8/01/1998 200,545 - 200,545
200,000 - 200,000 Sauget Illinois Pollution Control Revenue
Bonds, Monsanto Company Project, - - -
- - - 4.20%, due 9/01/2014, (a), (b) 200,000 - 200,000
--------------------------------------
2,200,545 2,320,000 4,520,545
INDIANA
500,000 - 500,000 Indiana State Office Building Commission
Capital Complex Revenue
- - - Bonds, (Indiana Government Center - State
Office Building I), Series 1988 512,980 - 512,980
- - - 7.75%, due 7/1/2009, Pre-refunded at 102 - - -
300,000 - 300,000 Indiana State Development Authority, Education
Facilities Project Revenue - - -
- - - Bonds (Lutheran High School), 4.25%,
due 10/01/2017, (a) 300,000 - 300,000
500,000 - 500,000 Indianapolis Industrial Economic Development
Revenue, Visiting Nurse - - -
- - - Service Foundation, 4.20%, due 3/01/2013, (a) 500,000 - 500,000
410,000 - 410,000 Lafayette Indiana Redevelopment Authority
Economic Development - - -
- - - Lease Rental, 7.10%, due 2/01/2009,
Pre-refunded at 102 428,227 - 428,227
---------------------------------------
1,741,207 - 1,741,207
KANSAS
- - - Kansas State Department of Transportation
- - - Highway Revenue, Series B,
- 500,000 500,000 5.00%, 09/01/14 ......... - 500,000 500,000
KENTUCKY
500,000 - 500,000 Kentucky Infrastructure Authority,
Governmental Agencies (BANS),
- - - Series B, 4.15%, due 6/30/1998, (a) 500,000 - 500,000
200,000 - 200,000 Kentucky Infrastructure Authority,
Governmental Agencies (BANS) - - -
- - - Series A, 4.15%, due 6/30/1998, (a) 200,000 - 200,000
---------------------------------------
700,000 - 700,000
LOUSIANA
- - - Calcasieu Parish, Louisiana Industrial
- - - Development Board Pollution Control Revenue,
- 500,000 500,000 5.00%, 08/01/04 - 500,000 500,000
- - - Louisiana Public Facilities Authority Revenue, - - -
- - - Multi-Family Housing, Emberwood Project, - - -
- 1,000,000 1,000,000 5.00%, 10/01/22 ......... - 1,000,000 1,000,000
- - - Louisiana State Offshore Terminal Authority - - -
- 300,000 300,000 Deep Water Port Revenue, 5.00%, 09/01/08 - 300,000 300,000
- - - South Louisiana Port Commission Marine - - -
- - - Terminal Facilities Revenue, - - -
- 500,000 500,000 5.00%, 07/01/21 ....... - 500,000 500,000
---------------------------------------
- 2,300,000 2,300,000
MARYLAND
- - - Maryland State General Obligation,
- 1,000,000 1,000,000 5.90%, 03/15/99........ - 1,019,577 1,019,577
- - - Montgomery County, Maryland Solid Waste - - -
- 700,000 700,000 Disposal, 4.80%, 06/01/98 - 700,482 700,482
250,000 - 250,000 Howard County, MD, Metropolitan District
Bonds, 1989 Series A, - - -
- - - 7.40%, due 2/15/2009, Pre-refunded at 101 258,104 - 258,104
150,000 - 150,000 Washington Suburban Sanitary District,
General Construction, - - -
- - - 7.00%, due 12/01/99, Pre-refunded at 102 155,804 - 155,804
500,000 - 500,000 Washington Suburban Sanitary District,
(Sewage Disposal Bonds of 1994) - - -
- - - 5.75%, due 6/1/1998 500,759 - 500,759
---------------------------------------
914,667 1,720,059 2,634,726
MASSACHUSETTS
100,000 - 100,000 Massachusetts State Housing, Residential
Development, FNMA Collateral
- - - Series A, 5.60%, due 11/15/1998 100,948 - 100,948
MICHIGAN
- - - Charter County of Wayne, Michigan,
- 1,000,000 1,000,000 Airport Revenue, 5.00%, 12/01/16 - 1,000,000 1,000,000
- - - Michigan State General Obligation, - - -
- 790,000 790,000 4.50%, 09/30/98 - 792,522 792,522
300,000 - 300,000 Michigan State Hospital Finance Authority
(Equipment Loan Program Bonds), - - -
- - - 4.15%, due 12/01/2023, (a) 300,000 - 300,000
300,000 - 300,000 Michigan State Hospital Finance Authority
(Equipment Loan Program Bonds), - - -
- - - Series A, 4.15% , due 12/01/2023, (a) 300,000 - 300,000
300,000 - 300,000 Michigan State Job Development Authority
Revenue (East Lansing Residence), 3.85%,
due 12/01/2014, (a) 300,000 - 300,000
200,000 - 200,000 Michigan State Job Development Authority
Revenue (Kentwood Residence), 3.85%,
due 11/01/2014, (a) 200,000 - 200,000
250,000 - 250,000 Reed City, Michigan, Public School
District, Unlimited Tax General Obligation
Bonds, 5.40%, due 5/01/1998 250,000 - 250,000
---------------------------------------
1,350,000 1,792,522 3,142,522
MISSOURI
City of Columbia Missouri Special Obligation
Insurance Reserve, Series A,
- 200,000 200,000 5.00%, 06/01/08 - 200,000 200,000
- - - Missouri Higher Education Loan Authority - - -
- - - Student Loan Revenue, Series B, - - -
- 400,000 400,000 5.00%, 06/01/20 - 400,000 400,000
- - - Health & Education Facilities Authority of the
- 300,000 300,000 State of Missouri, 5.00%, 06/01/06 - 300,000 300,000
400,000 - 400,000 Missouri Environmental Improvement and
Energy Resources Authority, Pollution Control
Revenue Bonds (Monsanto Company),
4.20%, due 6/01/2023, (a) 400,000 - 400,000
---------------------------------------
400,000 900,000 1,300,000
</TABLE>
<PAGE>
WM TAX-EXEMPT MONEY MARKET FUND AND GRIFFIN TAX-FREE MONEY MARKET FUND
Pro Forma Combined Portfolio of Investments
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
WM Griffin WM Griffin
Tax-Exempt Tax-Free Tax-Exempt Tax-Free
Money Market Money Market Pro Forma Money Market Money Market Pro Forma
Fund Fund Combined Fund Fund Combined
<S> <C> <C> <C> <C> <C> <C>
NEBRASKA
- - - Nebraska Higher Education Loan Program,
- 400,000 400,000 5.00%, 12/01/16................................ - 400,000 400,000
- 350,000 350,000 3.95%, 08/01/18................................ - 350,000 350,000
---------------------------------
- 750,000 750,000
NEVADA
- - - Clark County, Nevada Airport System
- - - Subordinated Lien Revenue, Series A-1,
- 800,000 800,000 5.00%, 07/01/25................................ - 800,000 800,000
NEW JERSEY
250,000 - 250,000 New Jersey Housing and Mortgage Finance Agency,
(Multifamily 250,000 - 250,000
- - - Housing Revenue Bonds) 1995 Series A, 4.15%,
due 5/01/1998 - - -
100,000 - 100,000 New Jersey State Transportation Trust Fund,
Series A - - -
- - - 5.00%, due 12/15/1998 100,757 - 100,757
---------------------------------
350,757 - 350,757
NEW MEXICO
- - - New Mexico State Tax & Revenue Anticipation
- 480,000 480,000 Notes, 4.50%, 06/30/98 ........................ - 480,484 480,484
NEW YORK
300,000 - 300,000 Jefferson County, N.Y., Industrial Development
Agency, Watertown-Carthage TV,
- - - 3.60%, due 12/01/2012, (A) 300,000 - 300,000
300,000 - 300,000 New York, N.Y. Series B, Subseries B4, - - -
- - - 3.90%, due 8/15/2023, (A) 300,000 - 300,000
130,000 - 130,000 Shenendehowa Central School District, N.Y.
Clifton Park - - -
- - - 5.30%, due 8/15/1998 130,610 - 130,610
---------------------------------
730,610 - 730,610
NORTH CAROLINA
- - - North Carolina Educational Facilities Finance
- - - Agency Bowman Gray School,
- 400,000 400,000 5.00%, 09/01/20................................ - 400,000 400,000
200,000 - 200,000 Cumberland County NC Industrial Facility &
Pollution Control, - - -
- - - (Monsanto Company Project), 4.10%, due 6/1/2012, (A) 200,000 - 200,000
---------------------------------
200,000 400,000 600,000
NORTH DAKOTA
125,000 - 125,000 Grand Forks, ND, Sales Tax Revenue, Aurora
Project, Series A,
- - - 3.90%, due 12/15/1998 125,074 - 125,074
OHIO
- - - Student Loan Funding Corporation Cincinnati,
- - - Ohio Student Loan Revenue, Series A,
- 200,000 200,000 5.00%, 01/01/07................................ - 200,000 200,000
100,000 - 100,000 Columbus, OH, Limited General Obligation, Series A,
- - - 3.60%, due 5/15/98 100,000 - 100,000
100,000 - 100,000 Columbus Ohio, Unlimited General Obligation, Series 1, - - -
- - - 3.90%, due 6/01/2016* 100,000 - 100,000
145,000 - 145,000 Little Miami, OH, Local School District - - -
- - - 3.60%, due 12/01/1998 145,000 - 145,000
505,000 - 505,000 Toledo, OH, Limited Tax General Obligation Bonds,
Various Purpose - - -
- - - Improvement Bonds, Series 1997, 3.90%,
due 12/01/1998 505,223 - 505,223
---------------------------------
850,223 200,000 1,050,223
OREGON
- - - Oregon State General Obligation,
- 880,000 880,000 4.50%, 08/01/98 ............................... - 881,910 881,910
100,000 - 100,000 Klamath Falls, OR, Electric Revenue, Salt Caves
Hydroelectric, Series C - - -
- - - 3.80%, due 5/1/2023 (Mandatory Put Bonds) 100,000 - 100,000
500,000 - 500,000 Oregon State, Series 73E, 4.15%, due 12/01/2016, (A) 500,000 - 500,000
200,000 - 200,000 Portland, OR, Limited Tax Improvement Bonds,
1995 Series A 8.00%, due 6/01/98 200,699 - 200,699
350,000 - 350,000 Portland, OR, Water System Revenue Bonds,
Series 1995, 4.10%, due 8/01/1998 350,250 - 501,301
500,000 - 500,000 Washington County, OR, School District # 48J
(Beaverton), Unlimited Tax - - -
- - - General Obligation, 7.40%, due 6/01/1998,
Pre-refunded at 100 501,301 - 501,301
---------------------------------
1,652,250 881,910 2,534,160
PENNSYLVANIA
- - - Allegheny County, Pennsylvania Hospital
- - - Development Authority Hospital Revenue,
- 500,000 500,000 Series B, 5.00%, 09/01/20 ..................... - 500,000 500,000
- - - Delaware Valley, Pennsylvania Regional - - -
- - - Finance Authority, Local Government - - -
- 300,000 300,000 Revenue, 5.00%, 12/01/18 ...................... - 300,000 300,000
- 500,000 500,000 5.00%, 12/01/20................................ - 500,000 500,000
100,000 - 100,000 Pennsylvania State Unlimited General Obligation Bonds, - - -
- - - Second Series A of 1988, 6.80%, due 5/15/1998 100,111 - 100,111
---------------------------------
100,111 1,300,000 1,400,111
RHODE ISLAND
250,000 - 250,000 Providence, RI, Unlimited Tax General Obligation
Refunding Bonds,
- - - 6.10%, due 9/01/1998 251,833 - 251,833
TENNESSEE
- - - Health & Educational Facilities Board of the
- - - Metropolitan Government of Nashville &
- 350,000 350,000 Davidson County, 4.50%, 07/01/98 .............. - 350,311 350,311
570,000 - 570,000 Hendersonville Industrial Development Board,
Multifamily Housing Revenue - - -
- - - Bonds (Windsor Park), 4.15%, due 2/15/2028, (A) 570,000 - 570,000
600,000 - 600,000 Metro Government Nashville/Davidson County, TN,
Industrial Development - - -
- - - Multifamily Housing Revenue Bonds (Chimneytop II), - - -
- - - 4.375%, due 9/01/2006, (A) 600,000 - 600,000
---------------------------------
1,170,000 350,311 1,520,311
TEXAS
- - - Guadalupe Blanco River Authority Texas
- - - Pollution Control Revenue, Central Power &
- 600,000 600,000 Light Project, 5.00%, 11/01/15 ......... - 600,000 600,000
- - - Panhandle-Plains, Texas Higher Education - - -
- - - Authority Student Loan Revenue, Series A, - - -
- 600,000 600,000 4.50%, 06/01/25......................... - 600,000 600,000
- - - Texas State Tax & Revenue Anticipation Notes, - - -
- 600,000 600,000 Series A, 4.75%, 08/31/98 .............. - 601,756 601,756
500,000 - 500,000 Austin County, TX, Industrial Development Corporation
(Justin Industries, - - -
- - - Inc. Project), 4.05%, due 12/01/2014, (A) (B) 500,000 - 500,000
500,000 - 500,000 Brazos River, TX, Pollution Control Revenue
Refunding Bonds - - -
- - - (Monsanto Company Project), 4.20%,
due 11/01/2000, (A) (B) 500,000 - 500,000
400,000 - 400,000 Harris County Texas Health Facility
(Sisters of Charity), Series C, - - -
- - - 4.125%, due 7/01/2023, (A) 400,000 - 400,000
190,000 - 190,000 Judson, TX, Independent School District, Unlimited Tax
General Obligation Bonds - - -
- - - 3.80%, due 2/1/1999 190,000 - 190,000
- - - Lower Neches Valley, TX, Industrial Development
Corporation, Pollution - - -
- - - Control Revenue Bonds (Neches River Treatment
Corporation Project), - - -
- - - Series 1994A, 4.10%, due 2/01/2004
(Guaranteed By Mobil Corp.), (A) (B) 600,000 - 600,000
420,000 - 420,000 Pflugerville, TX, Independent School District
Unlimited Tax School - - -
- - - Building and Refunding Bonds, 4.25%, due 8/15/1998 420,533 - 420,533
-----------------------------------
2,610,533 1,801,756 4,412,289
UTAH
620,000 - 620,000 Cache County, UT, School District (General Obligation
School Building Bonds),
Series 1997, 4.00%, due 6/15/1998 620,107 - 620,107
250,000 - 250,000 Ogden City, UT, Unlimited General Obligation Bonds - - -
- - - 4.20%, due 12/15/1998 250,600 - 250,600
250,000 - 250,000 Utah State Board of Regents Refunding Hospital Revenue
Bonds (University of Utah), Series 1997, 4.75%,
due 8/01/1987 250,583 - 250,583
-----------------------------------
1,121,290 - 1,121,290
VIRGINIA
- - - Newport News, Virginia General Obligation,
- 1,000,000 1,000,000 6.88%, 12/01/98 ............................ - 1,043,530 1,043,530
100,000 - 100,000 Virginia Public Building Authority (State Building
Revenue - - -
- - - Refunding Bonds), Series 1992B, 5.20%, due 8/01/1998 100,319 - 100,319
-----------------------------------
100,319 1,043,530 1,143,849
WASHINGTON
- - - Seattle, Washington General Obligation,
- 500,000 500,000 4.50%, 03/01/99 ............................ - 503,641 503,641
185,000 - 185,000 King & Snohomish Counties, WA, School District No. 417
(Northshore) Unlimited Tax General Obligation Bonds,
3.60%, due 6/01/1998 185,000 - 185,000
115,000 - 115,000 Mason County, WA, Public Utility District No. 003,
Electric Revenue Bonds, 3.75%, due 12/01/1998 115,000 - 115,000
1,000,000 - 1,000,000 Richland, WA, Golf Enterprise Revenue Bonds, 1996,
- - - 4.30%, due 12/01/2021, (A) 1,000,000 - 1,000,000
500,000 - 500,000 Seattle, WA Water System Revenue Bonds, 4.40%,
due 6/01/1998 500,328 - 500,328
1,430,000 - 1,430,000 Seattle, WA, Housing Authority Low Income Housing
Assistance Revenue - - -
- - - (Bayview Manor Project), Series B, 4.20%,
due 5/01/2019, (A) 1,430,000 - 1,430,000
500,000 - 500,000 Seattle, WA, Unlimited General Obligation Bonds,
Series A - - -
- - - 4.50%, due 9/01/1998 501,545 - 501,545
300,000 - 300,000 Seattle, WA, Unlimited General Obligation Refunding
Bonds, Series A 4.50%, due 3/01/1999 301,435 - 301,435
100,000 - 100,000 State of Washington Unlimited Tax General Obligation
Refunding Bonds, Series R-93B, 4.40%, due 10/01/1998 100,218 - 100,218
300,000 - 300,000 Washington State, Unlimited Tax General
Obligation Bonds,
Series R-89A, 7.50%, due 9/01/2003,
Pre-refunded at 100 303,602 - 303,602
160,000 - 160,000 Washington State, Unlimited Tax General
Obligation Bonds, 7.40%, due 12/01/2000 163,362 - 163,362
-----------------------------------
4,600,490 503,641 5,104,131
WEST VIRGINIA
- - - Marion County, West Virginia Solid Waste
- - - Disposal Facilities Revenue,
- 700,000 700,000 5.00%, 10/01/17. - 700,000 700,000
WISCONSIN
- - - Wisconsin State General Obligation, 4.75%,
- 500,000 500,000 4.75%, 05/01/98 ............................ - 500,000 500,000
- 200,000 200,000 6.90%, 05/01/98 ............................ - 200,000 200,000
220,000 - 220,000 Wisconsin Health and Education Facilities Authority
Revenue Bonds, - - -
- - - (Waukesha Memorial Hospital), Series 1995A, 4.30%,
due 8/15/1998 220,216 - 220,216
200,000 - 200,000 Wisconsin Unlimited Tax General Obligation Bonds of
1986, Series C, - - -
- - - 5.25%, due 5/01/1998 200,000 - 200,000
900,000 - 900,000 Wisconsin State Health and Educational Facilities
Authority - - -
- - - Facilities Revenue Bonds (SSM Health Care Project), - - -
- - - Series 1990A, 4.40%, due 6/01/2006, (A) 900,000 - 900,000
200,000 - 200,000 Wisconsin State Health Facilities Authority (Hospital - - -
- - - Sisters Obligation), Series G, 4.125%,
due 12/01/2001, (A) 200,000 - 200,000
-----------------------------------
1,520,216 700,000 2,220,216
WYOMING
- - - City of Kemmerer, Wyoming Pollution Control
- 900,000 900,000 Revenue, 5.00%, 11/01/14 ............... - 900,000 900,000
Total State and Municipal Securities 28,558,697 26,161,399 54,720,096
INVESTMENT COMPANY SECURITIES - (1.0%)
171,475 - 171,475 Nuveen Tax Exempt Money Market Fund, 3.42%
(Cost $171,475) 171,475 - 171,475
Seven Seas Tax Free Money Market Fund, - - -
- 357,026 357,026 3.40%, 05/01/98...... - 357,026 357,026
-----------------------------------
Total Investment Co. Securities 171,475 357,026 528,501
Total Investments - (101.9%) (Cost $55,248,597) 28,730,172 26,518,425 55,248,597
Other Assets and Liabilities, Net - (-1.9%) (1,216,934) 212,757 (1,004,177)
TOTAL NET ASSETS - (100.00%) 27,341,763 26,731,182 54,244,420
</TABLE>
(A) Floating rate security. The interest rate shown reflects the rate currently
in effect.
(B) Obligations of various corporations and are not supported by other third
party credit agreements.
<PAGE>
WM TAX-EXEMPT MONEY MARKET FUND & GRIFFIN TAX-FREE MONEY MARKET FUND
Notes to Pro Forma Combined Financial Statements (Unaudited)
1. Basis of Combination
The pro forma combined financial statements reflect the pro forma combined
financial position of the WM Tax-Exempt Money Market Fund and the Griffin
Tax-Free Money Market Fund at April 30, 1998 and the pro forma combined
results of operations for the year ended December 31, 1997 and the four
month period ended April 30, 1998 as though the reorganization had occurred
on January 1, 1997.
The pro forma combined financial statements are presented for the
information of the reader and may not necessarily be representative of how
the pro forma combined financial statements would have appeared had the
reorganization actually occurred.
The Pro Forma Combined Portfolio of Investments, Statement of Assets and
Liabilities, and the Statements of Operations should be read in conjunction
with the historical financial statements of the funds which are incorporated
by reference in the Statement of Additional Information.
The pro forma combined statements give effect to the proposed transfer of
the assets and stated liabilities of the Griffin Tax-Free Money Market Fund
in exchange for shares of the WM Tax-Exempt Money Market Fund. Under
generally accepted accounting principles, the historical cost of investment
securities will be carried forward to the surviving entity.
The pro forma combined statements do not reflect the expenses of either fund
in carrying out its obligations under the proposed Agreement and Plan of
Reorganization.
2. Pro Forma Combined Portfolio of Investments
Securities held by the two funds have been combined in the accompanying
Combined Portfolio of Investments. Securities are valued using the pricing
procedures and policies of the respective Acquiring Fund or Acquired Fund,
as applicable. For more information, see the WM Annual Reports or the
Griffin Annual Reports. Historical cost amounts represent the combined cost
basis of the securities.
3. Pro Forma Combined Statements of Assets and Liabilities
Shares outstanding have been adjusted to reflect the conversion of Griffin
Tax-Free Money Market Fund shares into WM Tax-Exempt Money Market Fund
shares based upon the net asset value of the WM Tax-Exempt Money Market Fund
shares at April 30, 1998.
<PAGE>
WM Short Term High Quality Bond Fund and Griffin Short-Term Bond Fund
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
WM
GRIFFIN SHORT TERM
SHORT-TERM HIGH QUALITY PRO FORMA PRO FORMA
BOND FUND BOND FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
ASSETS:
Investments at value $94,148,234 $42,544,286 $136,692,520
------------------------------------------------------------
Total Investments 94,148,234 42,544,286 - 136,692,520
Cash/Cash Equivalents 138,548 138,548
Receivable for dollar roll fee income - -
Dividends and/or interest receivable 1,508,905 444,756 1,953,661
Receivable for Fund shares Sold 2,000 2,000
Receivable for investment securities sold 19,132 19,132
Unamortized organization costs 1,182 1,182
Receivable from investment advisor 23,039 23,039
Prepaid expenses and other assets 8,594 1,397 9,991
------------------------------------------------------------
Total Assets 95,665,733 43,174,340 - 138,840,073
LIABILITIES:
Payable for dollar roll transactions - -
Variation margin payable 1,688 1,688
Reverse repurchase agreements - -
Payable for Fund shares redeemed - 82,015 82,015
Payable for investment securities purchased - - -
Investment advisory fee payable - -
Administration fee payable - -
Shareholder servicing and distribution fees payable 11,029 11,029
Dividends payable 388,722 66,483 455,205
Accrued legal and audit fees - -
Accrued transfer agent fees - -
Accrued Trustees' fees and expenses - -
Accrued registration and filing fees payable - -
Due to Custodian 96,860 - 96,860
Net unrealized depreciation of fwd for curr cts - -
Accrued Expenses and other payables 79,199 50,349 129,548
------------------------------------------------------------
Total Liabilities 564,781 211,564 - 776,345
------------------------------------------------------------
------------------------------------------------------------
TOTAL NET ASSETS $95,100,952 $42,962,776 $ - $138,063,728
============================================================
NET ASSETS:
Undistributed net investment income/
(accumulated net investment loss/distributions
in excess of net investment income) $ - $ (650) $ (650)
Accumulated net realized gain/(loss)
on investments sold, futures contracts,
closed written options, forward foreign currency
contracts and foreign currency transactions 14,746 (1,743,719) (1,728,973)
Net unrealized app./(dep.) of investments,
foreign currency, written options, futures
contracts, forward foreign currency contracts
and other assets and liabilities 508,300 158,236 666,536
Paid-in capital 94,577,906 44,548,909 139,126,815
------------------------------------------------------------
TOTAL NET ASSETS $95,100,952 $42,962,776 $ - $138,063,728
============================================================
NET ASSETS:
Class A Shares $94,954,919 $35,551,039 $130,505,958
============================================================
Class B Shares $ 146,033 $ 3,458,674 $ 3,604,707
============================================================
Class S Shares $ 850,463 $ 850,463
============================================================
Class I Shares $ 3,102,600 $ 3,102,600
============================================================
SHARES OUTSTANDING:
Class A Shares 9,369,850 15,300,501 31,496,968 (A) 56,167,319
============================================================
Class B Shares 14,420 1,488,540 48,430 (A) 1,551,390
============================================================
Class S Shares 366,038 - 366,038
============================================================
Class I Shares 1,335,530 - 1,335,530
============================================================
NET ASSET VALUE PER SHARE:
Class A Shares $ 10.13 $ 2.32 $ 2.32
============================================================
Class B Shares $ 10.13 $ 2.32 $ 2.32
============================================================
Class S Shares $ 2.32 $ 2.32
============================================================
Class I Shares $ 2.32 $ 2.32
============================================================
</TABLE>
See accompanying notes to pro forma financial statements
- --------------------------------------------------------------------------------
(A) Shares outstanding have been adjusted to reflect the conversion of Griffin
Short-Term Bond Fund shares into WM Short Term High Quality Bond Fund
shares based upon the net asset value of WM Short Term High Quality Bond
Fund shares at June 30, 1998.
<PAGE>
WM Short Term High Quality Bond Fund and Griffin Short-Term Bond Fund
Pro Forma Combined Statement of Operations
For the Year Ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
WM
GRIFFIN SHORT TERM
SHORT-TERM HIGH QUALITY PRO FORMA PRO FORMA
BOND FUND BOND FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income - -
Foreign w/holding tax on dividend income -
Interest Income $ 3,734,214 $ 1,898,116 $ 5,632,330
Fee Income - -
----------------------------------------------------------
Total Investment Income 3,734,214 1,898,116 - 5,632,330
----------------------------------------------------------
EXPENSES:
Investment Advisory Fee 308,099 145,180 453,279
Administration Fee 123,240 33,910 (157,150) (A) -
Custodian Fee 75,696 8,438 84,134
Legal and audit fees 29,852 23,529 53,381
Trustees' fees and expenses 7,943 3,790 11,733
Amortization of Org. Cost 5,103 3,545 8,648
Registration and filing fees 13,915 25,417 39,332
Transfer agent fee - 19,227 203,412 (B) 222,689
Other 35,990 44,537 80,527
----------------------------------------------------------
Subtotal 599,838 288,346 (46,262) 953,723
Shareholder servicing and distribution fees:
Class A Shares 153,647 55,796 209,448
Class B Shares 1,610 30,496 32,106
Class S Shares 6,400 6,400
Interest expense - -
Fees waived and /or expenses absorbed by
investment advisor (347,704) (133,982) 27,957 (C) (453,729)
----------------------------------------------------------
Subtotal 407,391 266,333 74,219 747,943
Fees reduced by credits allowed by the custodian (428) (428)
----------------------------------------------------------
Net expenses 407,391 265,905 74,219 747,515
----------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 3,326,823 1,632,211 (74,219) 4,884,815
----------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains from:
Security transactions 59,758 (108,783) (49,025)
Forward foreign currency contracts and
foreign currency transactions - -
Futures contracts (105,817) (105,817)
Net unrealized appreciation/(depreciation) of:
Securities 524,692 63,850 588,542
Forward foreign currency contracts - -
Foreign currency, written options, futures
contracts and other assets and liabilities 8,262 8,262
----------------------------------------------------------
Net Real. And unreal G/(L) on investments 584,450 (142,488) - 441,962
----------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 3,911,273 $ 1,489,723 $ (74,219) $ 5,326,777
==========================================================
</TABLE>
(A) Elimination of the administration fees, now incorporated in the management
fee structure.
(B) Addition of transfer agent fee at a monthly rate of $1.45 per Class A
shareholder account and $1.55 per Class B and Class S shareholder account.
(C) Fees waived and/or expense absorbed by investment advisor adjusted to .50%
of average daily net assets.
<PAGE>
<TABLE>
<CAPTION>
WM Short Term High Quality Bond Fund and Griffin Short-Term Bond Fund
Portfolio of Investments Pro Forma Combined Portfolio of Investments
30-Jun-98
Principal Amount (Unaudited) Market Value
- -------------------------------------------------- -------------------------------------------
WM Griffin WM Griffin
Short Term High Short-Term Pro Forma Short Term High Short-Term Pro Forma
Quality Bond Fund Bond Fund Combined Quality Bond Fund Bond Fund Combined
CORPORATE BONDS - 22 9%
<S> <C> <C> <C> <C> <C> <C> <C>
Banking
- 470,000 470,000 Bankers Trust - New York, 9.50%, 06/14/00.... - 498,788 498,788
- 30,000 30,000 First Chicago, 9.00%, 06/15/99........... - 30,788 30,788
- - - MBNA Corporation - - -
- 450,000 450,000 6.10%, 12/15/00................. - 448,313 448,313
- 210,000 210,000 6.88%, 10/01/99................. - 211,838 211,838
- - - Northern Trust - - -
- 1,000,000 1,000,000 6.50%, 05/01/03................. - 1,018,750 1,018,750
-----------------------------------
- 2,208,477 2,208,477
Financial Services
Associates Corporation, N.A......... - - -
- 250,000 250,000 6.00%, 03/15/00............. - 250,313 250,313
- 16,000 16,000 6.75%, 10/15/99............. - 16,141 16,141
- 1,000,000 1,000,000 Bear Stearns Company, 6.20%, 03/30/03...... - 996,250 996,250
- 1,000,000 1,000,000 CIT Group Holdings, 6.38%, 11/15/02....... - 1,011,250 1,011,250
- - - Donaldson Lufkin & Jennrette, - - -
- 1,000,000 1,000,000 6.38%, 05/26/00................... - 1,005,000 1,005,000
- 1,000,000 1,000,000 Fairfax Financial Holdings, 7.75%, 12/15/03 - 1,055,000 1,055,000
- 1,000,000 1,000,000 Finova Capital Corporation, 6.28%, 11/01/99 - 1,003,000 1,003,000
- - - General Motors Acceptance Corporation - - -
- 200,000 200,000 5.63%, 02/15/01.................... - 198,750 198,750
- 500,000 500,000 7.75%, 01/15/99.................... - 505,310 505,310
- 255,000 255,000 Golden West Financial, 10.25%, 12/01/00... - 278,906 278,906
- 100,000 100,000 Heller Financial, 9.13%, 08/01/99...... - 103,171 103,171
- - - Lehman Brothers Holdings Corporation, - - -
- 150,000 150,000 8.88%, 11/01/98.................... - 151,325 151,325
- 717,000 717,000 Paine Webber Group, 9.25%, 12/15/01...... - 780,634 780,634
- 1,200,000 1,200,000 PDVSA Finance 144A, 6.45%, 02/15/04 - 1,185,000 1,185,000
- 750,000 750,000 Penske Truck Leasing, 6.65%, 11/01/00... - 762,188 762,188
- 1,000,000 1,000,000 Salomon Smith Barney Hld, 6.13%, 01/15/03 - 990,000 990,000
-----------------------------------
- 10,292,238 10,292,238
Food Products
- 1,000,000 1,000,000 Tyson Foods Incorporated, 6.00%, 01/15/03.. - 991,250 991,250
Industrial Conglomerate
- 100,000 100,000 Anheuser Busch Company, 8.75%, 12/01/99... - 103,875 103,875
- 603,000 603,000 Boise Cascade Company, 9.90%, 03/15/00.... - 634,658 634,658
- 600,000 600,000 Continental Cablevision, 8.50%, 09/15/01.. - 639,000 639,000
- - - Cox Communications Incorporated - New, - - -
- 40,000 40,000 8.55%, 06/01/00................... - 41,750 41,750
- - - Cox Communications Incorporated, - - -
- 100,000 100,000 6.38%, 06/15/00................... - 100,625 100,625
- 750,000 750,000 Eaton Off Shore, 9.00%, 02/15/01........ - 805,313 805,313
- 710,000 710,000 Enron Corporation, 9.13%, 04/01/03.... - 793,425 793,425
- - - General Motors Acceptance Corporation, - - -
- 300,000 300,000 6.88%, 07/15/01.................. - 306,375 306,375
- 1,000,000 1,000,000 Hertz Corporation, 7.38%, 06/15/01..... - 1,030,000 1,030,000
- 1,000,000 1,000,000 Ingersoll-Rand, 6.26%, 02/15/01...... - 1,007,500 1,007,500
- - - International Paper Company, - - -
- 150,000 150,000 9.70%, 03/15/00.................. - 159,000 159,000
- 1,000,000 1,000,000 Lehman Brothers Inc , 6.13%, 02/01/01 - 998,750 998,750
- 71,000 71,000 Lockheed Corporation, 9.38%, 10/15/99... - 73,840 73,840
- 100,000 100,000 Pepsico Incorporated, 7.75%, 10/01/98.. - 100,330 100,330
- 2,000,000 2,000,000 Philip Morris, 7.50%, 04/01/04....... - 2,105,000 2,105,000
- 1,000,000 1,000,000 Sony Corporation, 6.13%, 03/04/03..... - 1,003,750 1,003,750
- 65,000 65,000 Texaco Capital Incorporated, 9.00%, 12/15/99 - 67,763 67,763
-----------------------------------
- 9,970,954 9,970,954
Retailing
- 450,000 450,000 Penney J C & Company, 6.95%, 04/01/00...... - 457,875 457,875
- 100,000 100,000 Wal-Mart Stores, 6.75%, 05/15/02......... - 103,000 103,000
-----------------------------------
- 560,875 560,875
Transportation
- 1,000,000 1,000,000 Praxair, 6.15%, 0?/15/03 - 997,500 997,500
- 150,000 150,000 Southwest Airlines, 9.40%, 07/01/01...... - 162,930 162,930
- 1,000,000 1,000,000 Union Pacific Co , 9.63%, 12/15/02 - 1,125,000 1,125,000
-----------------------------------
- 2,285,430 2,285,430
Utilities
- 30,000 30,000 Alabama Power Company, 6.38%, 08/01/99...... - 30,150 30,150
- 100,000 100,000 Baltimore Gas & Electric, 8.93%, 07/16/98.. - 100,125 100,125
- 465,000 465,000 Consolidated Natural Gas, 8.75%, 06/01/99.. - 476,044 476,044
- 300,000 300,000 National Rural Utilities, 6.75%, 09/01/01.. - 306,750 306,750
- 275,000 275,000 Orange & Rockland Utility, 9.38%, 03/15/00. - 289,781 289,781
- 1,000,000 1,000,000 Philadelphia Electric, 8.00%, 04/01/02... - 1,062,500 1,062,500
- 1,000,000 1,000,000 Potomac Capital Investment, 6.80%, 09/12/01 - 1,007,500 1,007,500
- - - Public Service Electric & Gas, - - -
- 1,000,000 1,000,000 8.75%, 07/01/99................. - 1,026,250 1,026,250
- 60,000 60,000 Southern California Edison, 8 25%, 02/01/00 - 62,100 62,100
- 1,000,000 1,000,000 Union Texas Petroleum, 6 60%, 12/04/02 - 1,002,500 1,002,500
-----------------------------------
- 5,363,700 5,363,700
Total Corporate Bonds - 31,672,924 31,672,924
</TABLE>
<PAGE>
Portfolio of Investments
<TABLE>
<CAPTION>
WM Short Term High Quality Bond Fund and Griffin Short-Term Bond Fund
Pro Forma Combined Portfolio of Investments
30-Jun-98 (Unaudited)
Principal Amount Market Value
- -------------------------------------------------- -----------------------------------------------
WM Griffin WM Griffin
Short Term High Short-Term Pro Forma Short Term High Short-Term Pro Forma
Quality Bond Fund Bond Fund Combined Quality Bond Fund Bond Fund Combined
<S> <C> <C> <C> <C> <C> <C>
CORPORATE NOTES - 9.3%
400,000 - 400,000 Colonial Realty, Sr. Note, - - -
- - - 7.500% due 07/15/2001............................ 414,000 - 414,000
1,000,000 - 1,000,000 Crane Company, Note, - - -
- - - 7.250% due 06/15/1999............................ 1,011,510 - 1,011,510
1,220,000 - 1,220,000 CSX Corp, Deb., - - -
- - - 9.500% due 08/01/2000............................ 1,298,666 - 1,298,666
400,000 - 400,000 ERP Operating LP, - - -
- - - 8.500% due 05/15/1999(C)......................... 407,544 - 407,544
500,000 - 500,000 Federated Department Stores, - - -
- - - 6.790% due 07/15/2027............................ 511,525 - 511,525
1,500,000 - 1,500,000 General Electric Capital Corporation, Series A, MTN, - - -
- - - 5.800% due 04/24/2000............................ 1,500,000 - 1,500,000
1,500,000 - 1,500,000 McDonald Douglas Finance Corp., Series X, MTN, - - -
- - - 6.710% due 07/19/2000............................ 1,516,215 - 1,516,215
1,500,000 - 1,500,000 Merrill Lynch Finance Corp., Series B, MTN, - - -
- - - 6.100% due 10/04/1999............................ 1,506,870 - 1,506,870
200,000 - 200,000 Nabisco Inc., Industrial Note, - - -
- - - 6.300% due 08/26/1999(C)......................... 199,840 - 199,840
1,500,000 - 1,500,000 Sun Communities Inc., Sr. Note, - - -
- - - 7.625% due 05/01/2003............................ 1,554,210 - 1,554,210
- - - Taubman Realty Corporation, MTN: - - -
300,000 - 300,000 7.400% due 06/10/2002............................ 314,037 - 314,037
500,000 - 500,000 7.500% due 06/15/2002............................ 516,395 - 516,395
100,000 - 100,000 Time Warner Inc., - - -
- - - 7.950% due 02/01/2000............................ 102,756 - 102,756
1,500,000 - 1,500,000 Travelers Inc., Notes, - - -
- - - 6.125% due 06/15/2000............................ 1,507,500 - 1,507,500
500,000 - 500,000 US West Capital Funding Inc., - - -
- - - 6.125% due 07/15/2002............................ 500,010 - 500,010
---------------------------------------
Total Corporate Notes 12,861,078 - 12,861,078
COLLATERALIZED MORTGAGE OBLIGATIONS - 2.8%
29,058 - 29,058 Chemical Mortgage Securities Inc., 1993-1-A4, - - -
- - - 7.450% due 02/25/2023............................ 29,022 - 29,022
92,587 - 92,587 Countrywide Funding Corporation, 1994-1-A3, - - -
- - - 6.250% due 03/25/2024............................ 91,747 - 91,747
170,000 - 170,000 1994-C-A5, - - -
- - - 6.375% due 03/25/2024............................ 169,308 - 169,308
353,610 - 353,610 Federal Home Loan Mortgage Corporation (FHLMC), P/O, - - -
- - - REMIC, #1719-C, - - -
- - - Zero coupon due 04/15/1999................... 43,002 - 343,002
- - - General Electric Capital Mortgage Association: - - -
296,558 - 296,558 1994-27-A1, - - -
- - - 6.500% due 07/25/2024............................ 295,942 - 295,942
1,850,000 - 1,850,000 1996-HE3-A3, - - -
- - - 7.150% due 09/25/2026............................ 1901,295 - 1,901,295
580,220 - 580,220 Norwest Asset Securities Corporation, 1996-5-A13, - - -
- - - 7.500% due 11/25/2026............................ 583,665 - 583,665
427,049 - 427,049 Prudential Home Mortgage Securities, - - -
- - - 1993-43-A1, - - -
- - - 5.400% due 10/25/2023............................ 23,978 - 423,978
31,654 - 31,654 Ryland Acceptance Corporation, - - -
- - - 8.950% due 08/20/2019............................ 31,683 - 31,683
---------------------------------------
Total Collateralized Mortgage Obligations 3,869,642 - 3,869,642
ADJUSTABLE RATE MORTGAGE-BACKED SECURITIES - 1.6%
412,145 - 412,145 Federal Home Loan Mortgage Corporation (FHLMC), #845988, - - -
- - - 7.859% due 11/01/2021(B)......................... 428,824 - 428,824
- - - Federal National Mortgage Association (FNMA): - - -
404,600 - 404,600 #82247, - - -
- - - 6.250% due 04/01/2019(B)......................... 407,129 - 407,129
178,197 - 178,197 #124571, - - -
- - - 7.649% due 11/01/2022(B)......................... 184,323 - 184,323
219,707 - 219,707 #152205, - - -
- - - 7.398% due 01/01/2019(B)......................... 226,812 - 226,812
294,219 - 294,219 #141461, - - -
- - - 7.577% due 11/01/2021(B)......................... 299,229 - 299,229
592,492 - 592,492 #313257, - - -
- - - 6.258% due 11/01/2035(B)......................... 596,195 - 596,195
-----------------------------------------
Total Adjusted Rate Mortgage- Backed Securities 2,142,512 - 2,142,512
</TABLE>
<PAGE>
Portfolio of Investments
WM Short Term High Quality Bond Fund and Griffin Short-Term Bond Fund
<TABLE>
<CAPTION>
Pro Forma Combined Portfolio of Investments
Principal Amount June 30, 1998 (Unaudited) Market Value
- ----------------------------------------------- ------------------------------------------
WM Short Term Griffin WM Short Term Griffin
High-Quality Bond Short-Term Bond Pro Forma High-Quality Bond Short-Term Bond Pro Forma
Fund Fund Combined Fund Fund Combined
<S> <C> <C> <C> <C> <C> <C>
ASSET-BACKED SECURITIES - 5 2%
300,000 - 300,000 Conti-Mortgage Home Equity Loan Trust, - - -
- - - 1996-4-A6, - - -
- - - 6.710% due 06/15/2014...................... 302,529 - 302,529
300,000 - 300,000 Green Tree Financial Corporation, - - -
- - - 1995-6-B1, - - -
- - - 7.700% due 09/15/2026...................... 305,413 - 305,413
300,000 - 300,000 Green Tree Home Equity Loan Trust,
1997-B-A5, - - -
- - - 7.150% due 04/15/2027...................... 306,500 - 306,500
1,962,628 - 1,962,628 Green Tree Security Mortgage Trust,
1994-A, - - -
- - - 6.900% due 02/15/2004...................... 1,968,761 - 1,968,761
300,000 - 300,000 H & T Master Trust, - - -
- - - 8.430% due 08/15/2002(C)................... 300,422 - 300,422
600,000 - 600,000 MBNA Master Credit Card Trust, 1995-E-A, - - -
- - - 5.876% due 01/15/2005(B)................... 602,808 - 602,808
- - - Merrill Lynch Mortgage Investors, Inc : - - -
13,787 - 13,787 1991-B-A, - - -
- - - 9.200% due 04/15/2011...................... 13,858 - 13,858
269,248 - 269,248 1992-B-A4, - - -
- - - 7.850% due 04/15/2012...................... 276,528 - 276,528
71,120 - 71,120 Old Stone Credit Corporation, 1992-4A, - - -
- - - 6.550% due 11/15/2007...................... 71,009 - 71,009
1,000,000 - 1,000,000 Standard Credit Card Master Trust,
1994-4A, - - -
- - - 8.250% due 11/07/2003...................... 1,065,620 - 1,065,620
1,200,000 - 1,200,000 The Money Store Home Equity Trust,
1997-C-AF, - - -
- - - 6.307% due 08/15/2012...................... 1,201,500 - 1,201,500
696,423 - 696,423 World Omni Automobile Lease Securitization,
1996-B, - - -
- - - 6.850% due 11/15/2002(C)................... 707,305 - 707,305
--------------------------------------
Total Asset-Backed Securities 7,122,253 - 7,122,253
U S GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 7 0%
FEDERAL HOME LOAN BANK
- 200,000 200,000 5.89%, 07/24/00.............................. - 200,874 200,874
- 200,000 200,000 5.94%, 06/13/00.............................. - 201,046 201,046
FEDERAL HOME LOAN MORTGAGE CORPORATION
326,612 - 326,612 #A01226, Seasoned, - - -
- - - 9.500% due 08/01/2016........................ 354,051 - 354,051
- 188,613 188,613 5.50% due 05/01/01........................... - 186,137 186,137
- 172,018 172,018 5.50% due 06/01/01........................... - 169,760 169,760
- 87,781 87,781 6.00% due 06/01/01........................... - 87,836 87,836
- 358,975 358,975 6.00% due 06/01/01........................... - 359,198 359,198
- 107,783 107,783 6.00% due 04/01/99........................... - 107,851 107,851
- 331,179 331,179 6.50% due 05/01/01........................... - 334,509 334,509
- 296,179 296,179 6.50% due 12/01/99........................... - 300,897 300,897
- 256,631 256,631 7.00% due 09/01/01........................... - 260,720 260,720
- 175,000 175,000 7.13% due 07/21/99........................... - 177,599 177,599
- 50,000 50,000 7.75% due 11/07/01........................... - 53,080 53,080
FEDERAL NATIONAL MORTGAGE ASSOCIATION
250,657 - 250,657 #250235, 7 Year Balloon, - - -
- - - 8.500% due 02/01/2002...................... 256,266 - 256,266
317,745 - 317,745 #313030, Seasoned, - - -
- - - 10.000% due 05/01/2022**................... 349,265 - 349,265
588,127 - 588,127 #313641,Seasoned - - -
- - - 8.500% due 11/01/2017...................... 617,163 - 617,163
- 989,211 989,211 6.00% due 03/01/05........................... - 986,422 986,422
- 1,500,000 1,500,000 7.50% due 02/11/02........................... - 1,588,350 1,588,350
- 225,000 225,000 8.25% due 12/18/00........................... - 238,111 238,111
- 475,000 475,000 9.05% due 04/10/00........................... - 501,833 501,833
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
169,725 - 169,725 #038720, Seasoned, - - -
- - - 11.000% due 02/15/2010 (A)................. 189,479 - 189,479
52,647 - 52,647 #130183, Seasoned, - - -
- - - 11.000% due 05/15/2015 (A)................. 59,171 - 59,171
171,295 - 171,295 #131917, Seasoned, - - -
- - - 11.000% due 10/15/2015 (A)................. 192,522 - 192,522
22,348 - 22,348 #132833, Seasoned, - -
- - - 11.000% due 12/15/2015 (A)................. 25,167 - 25,167
54,327 - 54,327 #139704, Seasoned, - - -
- - - 11.000% due 11/15/2015 (A)................. 61,059 - 61,059
174,076 - 174,076 #140835, Seasoned, - - -
- - - 11.000% due 11/15/2015 (A)................. 195,287 - 195,287
134,075 - 134,075 #153965, Seasoned, - - -
- - - 10.000% due 02/15/2019..................... 147,243 - 147,243
64,698 - 64,698 #189482, Seasoned, - - -
- - - 11.000% due 04/15/2020 (A)................. 72,962 - 72,962
709,111 - 709,111 #262996, Seasoned, - - -
- - - 10.000% due 01/15/2019..................... 778,072 - 778,072
152,846 - 152,846 #291375, Seasoned, - - -
- - - 11.000% due 08/15/2020 (A)................. 172,943 - 172,943
84,676 - 84,676 #377550, Seasoned, - - -
- - - 8.000% due 03/15/2012...................... 87,745 - 87,745
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION II
250,190 - 250,190 9.000% due 04/20/2025...................... 266,243 - 266,243
Total U S Government Agency
Mortgage-Backed Securities 3,824,638 5,754,223 9,578,861
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WM Short Term High Quality Bond Fund and Griffin Short-Term Bond Fund
Portfolio of Investments Pro Forma Combined Portfolio of Investments
30-Jun-98
Principal Amount (Unaudited) Market Value
---------------------------------------------- ---------------------------------------------
WM Griffin WM Griffin
Short Term High Short-Term Pro Forma Short Term High Short-Term Pro Forma
Quality Bond Fund Bond Fund Combined Quality Bond Fund Bond Fund Combined
<S> <C> <C> <C> <C> <C>
U.S. TREASURY BONDS - 0 8%
- 1,100,000 1,100,000 5 75% due 10/31/00....................... - 1,105,115 1,105,115
U.S. TREASURY NOTES - 46 3%
- 600,000 600,000 5 13% due 11/30/98....................... - 599,562 599,562
650,000 - 650,000 5 250% due 01/31/2001.................... 645,938 - 645,938
- 1,600,000 1,600,000 5 50% due 04/15/00....................... - 1,600,384 1,600,384
- 2,800,000 2,800,000 5 50% due 12/31/00....................... - 2,798,040 2,798,040
3,000,000 - 3,000,000 5 625% due 02/15/2006.................... 3,012,180 - 3,012,180
500,000 - 500,000 5 625% due 02/28/2001.................... 501,250 - 501,250
2,000,000 - 2,000,000 5 625% due 11/30/1999.................... 2,002,500 - 2,002,500
3,000,000 - 3,000,000 5 750% due 11/15/2000.................... 3,015,000 - 3,015,000
- 5,200,000 5,200,000 5 88% due 11/15/99....................... - 5,223,608 5,223,608
- 1,750,000 1,750,000 6 00% due 08/15/99....................... - 1,759,240 1,759,240
500,000 - 500,000 6 000% due 08/15/2000.................... 504,765 - 504,765
- 3,500,000 3,500,000 6 13% due 07/31/00....................... - 3,540,880 3,540,880
- 4,300,000 4,300,000 6 25% due 04/30/01....................... - 4,378,561 4,378,561
- 4,000,000 4,000,000 6 25% due 10/31/01....................... - 4,081,280 4,081,280
2,000,000 - 2,000,000 6 250% due 04/30/2001.................... 2,037,180 - 2,037,180
- 5,500,000 5,500,000 6 63% due 04/30/02....................... - 5,697,065 5,697,065
- 5,650,000 5,650,000 6 63% due 06/30/01....................... - 5,812,381 5,812,381
- 550,000 550,000 6 88% due 03/31/00....................... - 562,106 562,106
- 1,200,000 1,200,000 7 00% due 04/15/99....................... - 1,213,644 1,213,644
- 650,000 650,000 7 13% due 02/29/00....................... - 666,166 666,166
- 4,550,000 4,550,000 7 50% due 05/15/02....................... - 4,853,258 4,853,258
- 650,000 650,000 7 50% due 10/31/99....................... - 666,081 666,081
- 1,950,000 1,950,000 7 75% due 01/31/00....................... - 2,014,604 2,014,604
- 1,500,000 1,500,000 7 75% due 12/31/99....................... - 1,547,295 1,547,295
- 700,000 700,000 8 50% due 02/15/00....................... - 731,750 731,750
- 1,150,000 1,150,000 8 88% due 05/15/00....................... - 1,218,230 1,218,230
- 3,200,000 3,200,000 9 13% due 05/15/99....................... - 3,297,376 3,297,376
-------------------------------------
Total U.S. Treasury Notes 11,718,813 52,261,511 63,980,324
FOREIGN GOVERNMENT BONDS - 0 7%
1,000,000 - 1,000,000 Ontario (Province of Canada),
6 125% due 06/28/2000.................. 1,005,350 - 1,005,350
REPURCHASE AGREEMENT - 2 4%
State Street Bank & Trust Co ,
Master Repurchase Agreement, 4 25%,
Dated 3/31/98 due 4/1/98, Collateralized
by U S Government Securities
- 3,354,461 3,354,461 (delivery value $392,493)............... - 3,354,461 3,354,461
TOTAL INVESTMENTS - 99.0%,
(COST $136,019,255) 42,544,286 94,148,234 136,692,520
OTHER ASSETS AND LIABILITIES, NET - 1.0% 418,490 952,718 1,371,208
TOTAL NET ASSETS - 100.0% 42,962,776 95,100,952 138,063,728
</TABLE>
_____________________________________
(A) A portion or all of these securities are pledged as collateral for futures
contracts.
(B) Variable rate security. The interest rate shown reflects the rate
currently in effect.
(C) Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration,
normally to qualified institutional buyers.
<PAGE>
WM SHORT TERM HIGH QUALITY BOND FUND & GRIFFIN SHORT-TERM BOND FUND
Notes to Pro Forma Combined Financial Statements (Unaudited)
1. Basis of Combination
The pro forma combined financial statements reflect the pro forma combined
financial position of the WM Short Term High Quality Bond Fund and the
Griffin Short-Term Bond Fund at June 30, 1998 and the pro forma combined
results of operations for the year ended June 30, 1998 as though the
reorganization had occurred on July 1, 1997.
The pro forma combined financial statements are presented for the
information of the reader and may not necessarily be representative of how
the pro forma combined financial statements would have appeared had the
reorganization actually occurred.
The Pro Forma Combined Portfolio of Investments, Statement of Assets and
Liabilities, and the Statement of Operations should be read in conjunction
with the historical financial statements of the funds which are incorporated
by reference in the Statement of Additional Information.
The pro forma combined statements give effect to the proposed transfer of
the assets and stated liabilities of the Griffin Short-Term Bond Fund in
exchange for shares of WM Short Term High Quality Bond Fund. Under generally
accepted accounting principles, the historical cost of investment securities
will be carried forward to the surviving entity.
The pro forma combined statements do not reflect the expenses of either fund
in carrying out its obligations under the proposed Agreement and Plan of
Reorganization.
2. Pro Forma Combined Portfolio of Investments
Securities held by the two funds have been combined in the accompanying
Combined Portfolio of Investments. Securities are valued using the pricing
procedures and policies of the respective Acquiring Fund or Acquired Fund,
as applicable. For more information see the WM Annual Reports or the
Griffin Annual Reports. Historical cost amounts represent the combined cost
basis of the securities.
3. Pro Forma Combined Statements of Assets and Liabilities
Shares outstanding have been adjusted to reflect the conversion of Griffin
Short-Term Bond Fund shares into WM Short Term High Quality Bond Fund shares
based upon the net asset value of the WM Short Term High Quality Bond Fund
shares at June 30, 1998.
<PAGE>
WM U.S. Government Securities Fund and Griffin U.S. Government Income Fund
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
US GOVERNMENT US GOVERNMENT PRO FORMA PRO FORMA
INCOME FUND SECURITIES FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
ASSETS:
Investments at value $123,818,655 $465,802,730 $589,621,385
-
-------------------------------------------------------------------
Total Investments 123,818,655 465,802,730 - 589,621,385
Cash/Cash Equivalents 264,292 315,010 579,302
Receivable for dollar roll fee income 2,406 2,406
Dividends and/or interest receivable 1,109,878 3,877,005 4,986,883
Receivable for Fund shares Sold 7,334 310,533 317,867
Receivable for investment securities sold - -
Unamortized organization costs - -
Receivable from investment advisor - -
Prepaid expenses and other assets 4,812 19,656 24,468
-------------------------------------------------------------------
Total Assets 125,204,971 470,327,340 - 595,532,311
LIABILITIES:
Payable for dollar roll transactions 6,114,042 6,114,042
Variation margin payable 114,844 114,844
Reverse repurchase agreements 80,498,224 80,498,224
Payable for Fund shares redeemed - 925,923 925,923
Payable for investment securities purchased 17,287,840 - 17,287,840
Investment advisory fee payable 162,374 162,374
Administration fee payable - -
Shareholder servicing and distribution fees payable 120,598 120,598
Dividends payable 491,309 879,523 1,370,832
Accrued legal and audit fees 5,335 5,335
Accrued Trustees' fees and expenses 2,101 2,101
Accrued registration and filing fees payable - -
Due to Custodian - -
Net unrealized depreciation of fwd for curr cts - -
Accrued Expenses and other payables 126,142 244,271 370,413
-------------------------------------------------------------------
Total Liabilities 17,905,291 89,067,235 - 106,972,526
-------------------------------------------------------------------
-------------------------------------------------------------------
TOTAL NET ASSETS $107,299,680 $381,260,105 - $488,559,785
===================================================================
NET ASSETS:
Undistributed net investment income/
(accumulated net investment loss/distributions
in excess of net investment income) $ - $ 41,000 $ 41,000
Accumulated net realized gain/(loss)
on investments sold, futures contracts,
closed written options, forward foreign currency
contracts and foreign currency transactions (27,002) (7,136,028) (7,163,030)
Net unrealized app./(dep.) of investments,
foreign currency, written options, futures
contracts, forward foreign currency contracts
and other assets and liabilities 1,815,354 10,153,451 11,968,805
Paid-in capital 105,511,328 378,201,682 483,713,010
-------------------------------------------------------------------
TOTAL NET ASSETS $107,299,680 $381,260,105 $ - $488,559,785
===================================================================
NET ASSETS:
Class A Shares $103,063,684 $294,038,697 $397,102,381
===================================================================
Class B Shares $ 4,235,996 $ 22,081,393 $ 26,317,389
===================================================================
Class S Shares $ 6,748,647 $ 6,748,647
===================================================================
Class I Shares $ 58,391,368 $ 58,391,368
===================================================================
SHARES OUTSTANDING:
Class A Shares 11,046,945 27,148,122 (1,531,240) (A) 36,663,827
===================================================================
Class B Shares 453,649 2,039,590 (62,383) (A) 2,430,856
===================================================================
Class S Shares 622,636 622,636
===================================================================
Class I Shares 5,386,588 5,386,588
===================================================================
NET ASSET VALUE PER SHARE:
Class A Shares $ 9.33 $ 10.83 $ 10.83
===================================================================
Class B Shares $ 9.34 $ 10.83 $ 10.83
===================================================================
Class S Shares $ 10.84 $ 10.84
===================================================================
Class I Shares $ 10.84 $ 10.84
===================================================================
</TABLE>
See accompanying notes to pro forma financial statements
- --------------------------------------------------------------------------------
(A) Shares outstanding have been adjusted to reflect the conversion of Griffin
U.S. Government Income Fund shares into WM U.S. Government Securities Fund
shares based upon the net asset value of WM U.S. Government Securities
Fund shares at April 30, 1998.
<PAGE>
WM U.S. Government Securities Fund and Griffin U.S. Government Income Fund
Pro Forma Combined Statement of Operations
For the Period Ended 4/30/98
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
US GOVERNMENT US GOVERNMENT PRO FORMA PRO FORMA
INCOME FUND SECURITIES FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income - -
Foreign w/holding tax on dividend income -
Interest Income $2,086,469 $ 4,835,822 $ 6,922,291
Fee Income 69,825 69,825
----------------------------------------------------------------------------------
Total Investment Income 2,086,469 4,905,647 - 6,992,116
----------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fee 157,785 428,132 39,447 (A) 625,364
Administration Fee 63,114 - (63,114) (B) -
Custodian Fee 24,427 9,279 33,706
Legal and audit fees 11,988 5,335 17,323
Trustees' fees and expenses 2,604 2,101 4,705
Amortization of Org. Cost 5,578 - 5,578
Registration and filing fees 4,197 - 4,197
Other 11,363 - 11,363
----------------------------------------------------------------------------------
Subtotal 281,056 444,847 (23,667) 702,236
Shareholder servicing and distribution fees:
Class A Shares 75,452 172,323 49,590 (C) 297,365
Class B Shares 13,763 35,009 933 (D) 49,705
Class S Shares 9,666 9,666
Interest expense 188,227 188,227
Fees waived and /or expenses absorbed by
investment advisor (125,129) (35,103) 35,159 (E) (125,073)
----------------------------------------------------------------------------------
Subtotal 245,142 814,969 62,015 1,122,126
Fees reduced by credits allowed by the custodian (690)
----------------------------------------------------------------------------------
Net expenses 245,142 814,279 62,015 1,122,126
----------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 1,841,327 4,091,368 (62,015) 5,869,990
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains from:
Security transactions 186,854 192,670 379,524
Forward foreign currency contracts and
foreign currency transactions - -
Futures contracts - -
Net unrealized appreciation/(depreciation) of:
Securities (166,179) 6,701,181 6,535,002
Forward foreign currency contracts - -
Foreign currency, written options, futures
contracts and other assets and liabilities 2,732 2,732
----------------------------------------------------------------------------------
Net Real. And unreal G/(L) on investments 20,675 6,896,583 - 6,917,258
----------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $1,862,002 $10,987,951 $(62,015) $12,787,248
==================================================================================
</TABLE>
(A) Increase in management fees for Griffin shareholders to reflect the new
fee structure. Fees are based on .625% of average daily net assets up to
$250,000,000 and .50% of average daily net assets over that amount.
(B) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(C) Addition of shareholder servicing fee at a monthly rate of $1.45 per
shareholder account.
(D) Addition of shareholder servicing fee at a monthly rate of $1.55 per
shareholder account.
(E) Fees waived and/or expense absorbed by investment advisor adjusted to .13%
of average daily net assets.
<PAGE>
WM U.S. Government Securities and Griffin U.S. Government Income Fund
Pro Forma Combined Statement of Operations
For the Year Ended 12/31/97
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
US GOVERNMENT US GOVERNMENT PRO FORMA PRO FORMA
INCOME FUND SECURITIES FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income - -
Foreign w/holding tax on dividend income -
Interest Income $4,819,481 $ 8,575,819 $13,395,300
Fee Income - -
-------------------------------------------------------------------------------
Total Investment Income 4,819,481 8,575,819 - 13,395,300
-------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fee 350,449 769,591 87,600 (A) 1,207,640
Administration Fee 140,180 - (140,180) (B) -
Custodian Fee 76,972 43,651 120,623
Legal and audit fees 22,793 11,787 34,580
Trustees' fees and expenses 8,213 8,499 16,712
Amortization of Org. Cost 17,108 - 17,108
Registration and filing fees 12,114 22,077 34,191
Other 28,507 73,838 102,345
-------------------------------------------------------------------------------
Subtotal 656,336 929,443 (52,580) 1,533,199
Shareholder servicing and distribution fees:
Class A Shares 165,827 352,539 148,770 (C) 667,136
Class B Shares 37,591 32,614 2,800 (D) 73,005
Class S Shares - -
Interest expense - -
Fees waived and /or expenses absorbed by
investment advisor (360,340) - 118,812 (E) (241,528)
-------------------------------------------------------------------------------
Subtotal 499,414 1,314,596 217,802 2,031,812
Fees reduced by credits allowed by the custodian (2,671)
-------------------------------------------------------------------------------
Net expenses 499,414 1,311,925 217,802 2,031,812
-------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 4,320,067 7,263,894 (217,802) 11,363,488
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains from:
Security transactions 463,908 (493,856) (29,948)
Forward foreign currency contracts and
foreign currency transactions - -
Futures contracts - -
Net unrealized appreciation/(depreciation) of:
Securities 1,667,350 4,371,425 6,038,775
Forward foreign currency contracts - -
Foreign currency, written options, futures
contracts and other assets and liabilities - -
-------------------------------------------------------------------------------
Net Real. And unreal G/(L) on investments 2,131,258 3,877,569 - 6,008,827
-------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $6,451,325 $11,141,463 $(217,802) $17,372,315
===============================================================================
</TABLE>
(A) Increase in management fees for Griffin shareholders to reflect the new fee
structure. Fees are based on .625% of average daily net assets up to
$250,000,000 and .50% of average daily net assets over that amount.
(B) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(C) Addition of shareholder servicing fee at a monthly rate of $1.45 per
shareholder account.
(D) Addition of shareholder servicing fee at a monthly rate of $1.55 per
shareholder account.
(E) Fees waived and/or expense absorbed by investment advisor adjusted to .13%
of average daily net assets.
<PAGE>
Portfolio of Investments
<TABLE>
<CAPTION>
WM U.S. Government Securities Fund and Griffin U.S. Government Income Fund
Pro Forma Combined Portfolio of Investments
Principal Amount April 30, 1998 (Unaudited) Market Value
- -------------------------------------------------- -----------------------------------------------
WM Griffin WM Griffin
US Government US Government Pro Forma US Government US Government Pro Forma
Securities Fund Income Fund Combined Securities Fund Income Fund Combined
<S> <C> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 77.3%
Federal Home Loan Mortgage Corporation (FHLMC)
2,958,745 2,958,745 6.01% due 05/15/26................. - 2,963,68 2,963,368
21,632,862 - 21,632,862 6.500% due 02/01/2011
- 02/01/2028 ........................ 21,739,953 - 21,739,953
- 3,550,000 3,550,000 6.59% due 02/15/21 .................. - 3,639,859 3,639,859
- 2,000,000 2,000,000 7.00% due 01/15/24 .................. - 2,045,360 2,045,360
1,909,896 - 1,909,896 7.000% due 07/01/2024
- 2/01/2026 ......................... 1,935,561 - 1,935,561
59,809,141 - 59,809,141 7.500% due 01/01/2007
- 03/01/2013 ........................ 61,663,037 - 61,663,037
962,942 - 962,942 8.750% due 01/01/2013 ............... 1,010,058 - 1,010,058
1,614,792 - 1,614,792 9.000% due 12/01/2008
- 08/01/2022 ........................ 1,706,663 - 1,706,663
677,141 - 677,141 9.500% due 06/01/2016
- 05/01/2017 ........................ 720,944 - 720,944
1,769,573 - 1,769,573 15 Year Converted GOLD, 7.500%
due 05/01/2003 ...................... 1,824,320 - 1,824,320
- - - GOLD:
247,057 - 247,057 6.500% due 04/01/2027 ............... 245,127 - 245,127
63,854,459 - 63,854,459 7.500% due 07/01/2002
- 04/01/2013 ........................ 65,839,108 - 65,839,108
3,179,841 - 3,179,841 8.500% due 04/01/2019 ............... 3,322,934 - 3,322,934
----------------------------------------------------
Total Federal Home Loan Mortgage
Corporation (FHLMC) 160,007,675 8,648,587 168,656,262
Government National Mortgage Association (GNMA)
4,706,279 - 4,706,279 6.000% due 04/20/2026 ............... 4,529,794 - 4,529,794
13,999,033 - 13,999,033 6.500% due 08/15/2023
- 03/15/2024 ........................ 13,889,700 - 13,889,700
- 7,000,000 7,000,000 7.00% due 02/15/28 (C) .............. - 7,072,170 7,072,170
15,791,208 - 15,791,208 7.000% due 07/15/2008
- 08/15/2023 ........................ 16,019,161 - 16,019,161
- 2,861,271 2,861,271 7.50% due 03/15/24 .................. - 2,950,686 2,950,686
- 828,110 828,110 7.50% due 03/15/26 .................. - 850,884 850,884
- 3,528,199 3,528,199 7.50% due 06/15/27 .................. - 3,625,224 3,625,224
67,479,707 - 67,479,707 7.500% due 12/15/2022
- 12/15/2023 ........................ 69,405,254 - 69,405,254
- 1,730,590 1,730,590 8.00% due 02/15/27 .................. - 1,796,024 1,796,024
- 1,486,106 1,486,106 8.00% due 05/15/26 .................. - 1,542,296 1,542,296
- 720,152 720,152 8.00% due 06/15/26 .................. - 747,382 747,382
- 319,602 319,602 8.00% due 10/15/24 .................. - 331,687 331,687
- 228,579 228,579 8.00% due 12/15/24 .................. - 237,222 237,222
1,380,873 - 1,380,873 8.000% due 04/15/2022 ............... 1,433,954 - 1,433,954
1,525,813 - 1,525,813 8.500% due 05/15/2022 ............... 1,610,210 - 1,610,210
6,868,536 - 6,868,536 9.000% due 10/15/2008
- 06/15/2022 ........................ 7,362,212 - 7,362,212
6,237,702 - 6,237,702 9.500% due 04/15/2016
- 09/15/2020 ........................ 6,754,265 - 6,754,265
15,734 - 15,734 11.500% due 07/15/2015 .............. 17,705 - 17,705
- 28,985 28,985 12.50% due 06/15/14 ................. - 33,749 33,749
- 16,803 16,803 12.50% due 06/15/15 ................. - 19,566 19,566
- 24,185 24,185 12.50% due 12/15/10 ................. - 28,161 28,161
- 28,544 28,544 13.00% due 08/15/12 ................. - 33,380 33,380
40,496 - 40,496 13.500% due 09/15/2014
- 12/15/2014 ........................ 46,951 - 46,951
17,580 - 17,580 14.000% due 06/15/2011 .............. 20,426 - 20,426
6,000,000 - 6,000,000 30 Year TBA, 13.500% due 6,076,878 - 6,076,878
12/17/2020 ..........................
Total Government National Mortgage
----------------------------------------------------
Association (GNMA) 127,166,510 19,268,431 146,434,941
Federal National Mortgage Association (FNMA)
34,304 - 34,304 5.500% due 02/01/2009 ............... 33,146 - 33,146
2,230,000 - 2,230,000 6.000% due 08/25/2007 ............... 2,224,392 - 2,224,392
- 2,000,000 2,000,000 6.50% due 03/01/28 .................. - 1,976,240 1,976,240
- 3,000,000 3,000,000 6.50% due 05/01/13................... - 3,010,290 3,010,290
- 6,000,000 6,000,000 6.75% due 07/18/19 .................. - 6,067,680 6,067,680
- 4,789,189 4,789,189 7.00% due 03/01/27 .................. - 4,855,041 4,855,041
4,476,046 - 4,476,046 7.000% due 06/01/2010
-05/01/2012 ......................... 4,562,769 - 4,562,769
- 5,000,000 5,000,000 7.50% due 02/01/28 (C) .............. - 5,129,650 5,129,650
1,950,000 - 1,950,000 7.500% due 08/25/2001 ............... 2,003,598 - 2,003,598
4,499,374 - 4,499,374 8.000% due 05/01/2022
-01/01/2025 ......................... 4,665,289 - 4,665,289
- 1,000,000 1,000,000 8.10% due 08/12/19 .................. - 1,215,940 1,215,940
707,927 - 707,927 8.500% due 02/01/2023
-09/01/2025 ......................... 740,447 - 740,447
- 3,000,000 3,000,000 9.00% due 05/25/20................... - 3,240,330 3,240,330
437,908 - 437,908 9.000% due 06/01/2016
-06/01/2021 ......................... 463,635 - 463,635
825,342 - 825,342 ACES, 13.500% due 12/15/2014 ........ 835,539 - 835,539
12,445,920 - 12,445,920 STRIP, Zero Coupon due
10/01/2025 .......................... 10,056,602 - 10,056,602
----------------------------------------------------
Total Federal National Mortgage
Association (FNMA) 25,585,417 25,495,171 51,080,588
Government National Mortgage Association II (GNMA II)
1,036,681 - 1,036,681 9.500% due 02/20/2017
-03/20/2021 ......................... 1,113,461 - 1,113,461
- - - Adjustable Rate Mortgage (ARM): - - -
8,596,869 - 8,596,869 7.000% due 03/20/2022
-12/20/2022(B) ...................... 8,829,878 - 8,829,878
1,507,395 - 1,507,395 7.375% due 05/20/2022(B) ........... 1,554,501 - 1,554,501
----------------------------------------------------
Government National Mortgage
Association II (GNMA II) 11,497,840 - 11,497,840
Total U.S. Government Agency
Mortgage-Backed Securities 324,257,442 53,412,189 377,669,631
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WM U.S. Government Securities Fund and Griffin Government Income Fund
Pro Forma Combined Portfolio of Investments
April 30, 1998 (Unaudited)
WM Griffin WM Griffin
US Government US Government Pro Forma US Government US Government Pro Forma
Securities Fund Income Fund Combined Securities Fund Income Fund Combined
<S> <C> <C> <C> <C> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS - 8.5%
- - - REMIC, Pass-through certificates:
4,000,000 - 4,000,000 Trust 89-18, Class-C, - - -
- - - 9.500% due 04/25/2004 ..................... 4,245,664 - 4,245,664
1,493,811 - 1,493,811 Trust 92-83, Class X, - - -
- - - 7.000% due 02/25/2022 ..................... 1,493,391 - 1,493,391
5,255,853 - 5,255,853 Trust 93-162, Class E, - - -
- - - 6.000% due 08/25/2023 ..................... 5,113,388 - 5,113,388
2,527,000 - 2,527,000 Federal Home Loan Mortgage Corp.,
Series 1288, Class HA, 5.500% due 11/15/2020... 2,479,505 - 2,479,505
8,500,000 - 8,500,000 Federal Home Loan Mortgage Corp.,
6.850% due 07/25/2018 ......................... 8,555,803 - 8,555,803
4,900,000 - 4,900,000 Merrill Lynch Trust, 6.50% due 8/25/15 ........ 4,908,036 - 4,908,036
683,251 - 683,251 Mortgage Capital Trust, 9.25% due 6/1/17 ...... 692,283 - 692,283
- 2,947,362 2,947,362 Federal Home Loan Mortgage Corp.,
6.35%, 03/15/25 ............................... - 2,960,717 2,960,717
- 4,200,000 4,200,000 Federal National Mortgage Association,
6.25%, 06/25/19 ............................... - 4,198,992 4,198,992
- 1,439,787 1,439,787 Federal National Mortgage Association,
6.20%, 06/25/19 ............................... - 1,446,122 1,446,122
- 4,183,207 4,183,207 Federal National Mortgage Association,
6.35%, 04/25/27 (C) ........................... - 4,227,654 4,227,654
- 1,118,777 1,118,777 L. F. Rothschild Mortgage Trust, Series 3,
Class Z, 9.95%, 09/01/17 ...................... - 1,242,369 1,242,369
-------------------------------------
Total Collateralized Mortgage Obligations 27,488,070 14,075,854 41,563,924
U.S. TREASURY OBLIGATIONS - 33.7%
U.S. Treasury Notes
- 2,400,000 2,400,000 5.75% due 11/15/00 ............................ - 2,407,752 2,407,752
2,000,000 - 2,000,000 5.750% due 08/15/2003 ......................... 2,006,252 - 2,006,252
- 5,000,000 5,000,000 6.13% due 08/15/07 ............................ - 5,132,950 5,132,950
- 4,000,000 4,000,000 6.13% due 12/31/01 ............................ - 4,061,720 4,061,720
- 1,000,000 11,000,000 6.25% due 08/31/02 ............................ - 11,240,900 11,240,900
350,000 - 350,000 6.250% due 02/15/2007 ......................... 361,922 - 361,922
400,000 - 400,000 6.250% due 06/30/2002.......................... 408,375 - 408,375
21,400,000 - 21,400,000 6.375% due 09/30/2001 ......................... 21,868,144 - 21,868,144
4,750,000 - 4,750,000 6.500% due 10/15/2006 ......................... 4,981,567 - 4,981,567
- 2,500,000 2,500,000 7.00% due 07/15/06 ............................ - 2,698,425 2,698,425
30,000,000 - 30,000,000 7.000% due 07/15/2006 (A) ..................... 32,400,027 - 32,400,027
-------------------------------------
Total U.S. Treasury Notes 62,026,287 25,541,747 87,568,034
U.S. Treasury Bonds
- 10,850,000 10,850,000 12.00% due 08/15/13 ........................... - 15,908,815 15,908,815
1,500,000 - 1,500,000 6.000% due 02/15/2026 ........................ 1,496,719 - 1,496,719
5,285,000 - 5,285,000 6.125% due 11/15/2027.......................... 5,413,827 - 5,413,827
- 5,000,000 5,000,000 6.25% due 08/15/23 ............................ - 5,141,150 5,141,150
15,195,000 - 15,195,000 6.250% due 08/15/2023.......................... 15,636,611 - 15,636,611
1,888,000 - 1,888,000 6.625% due 02/15/2027.......................... 2,045,531 - 2,045,531
12,000,000 - 12,000,000 7.250% due 05/15/2016.......................... 13,631,255 - 13,631,255
3,250,000 - 3,250,000 7.250% due 08/15/2022.......................... 3,746,642 - 3,746,642
6,500,000 - 6,500,000 7.500% due 11/15/2016 (A)...................... 7,562,346 - 7,562,346
- 5,000,000 5,000,000 8.13% due 08/15/19 ............................ - 6,238,900 6,238,900
-------------------------------------
Total U.S. Treasury Bonds 49,532,931 27,288,865 76,821,796
Total U.S. Treasury Obligations 111,559,218 52,830,612 164,389,830
SHORT-TERM SECURITIES - 0.7%
- 3,500,000 3,500,000 Federal Home Loan Mortgage Corporation,
5.45% due 05/01/98............................. - 3,500,000 3,500,000
PURCHASE AGREEMENT - 0.5%
2,498,000 - 2,498,000 Agreement with Goldman Sachs, 5.30% dated
4/30/98, to be repurchased at
$2,498,36 on 5/1/98, collateralized
by $2,430,053 U.S. Treasury Note, 6.50%
due 8/15/05 (Market Value $2,570,612)........ 2,498,000 - 2,498,000
TOTAL INVESTMENTS (120.7%),
(COST $) 465,802,730 123,818,655 589,621,385
OTHER ASSETS AND LIABILITIES,
NET ( -20.7%) (84,542,625) (16,518,975)(101,061,600)
TOTAL NET ASSETS (100.00%) 381,260,105 107,299,680 488,559,785
</TABLE>
___________________________
(A) A portion or all of these securities are pledged as collateral for futures
contracts and dollar roll transactions.
(B) Variable rate security. The interest rate shown reflects the rate currently
in effect.
(C) Rate represents annualized yield to maturity at April 30, 1998.
<PAGE>
WM U.S. GOVERNMENT SECURITIES FUND & GRIFFIN U.S. GOVERNMENT INCOME FUND
Notes to Pro Forma Combined Financial Statements (Unaudited)
1. Basis of Combination
The pro forma combined financial statements reflect the pro forma combined
financial position of the WM U.S. Government Securities Fund and the
Griffin U.S. Government Income Fund at April 30, 1998 and the pro forma
combined results of operations for the year ended December 31, 1997 and the
four month period ended April 30, 1998 as though the reorganization had
occurred on January 1, 1997.
The pro forma combined financial statements are presented for the
information of the reader and may not necessarily be representative of how
the pro forma combined financial statements would have appeared had the
reorganization actually occurred.
The Pro Forma Combined Portfolio of Investments, Statement of Assets and
Liabilities, and the Statements of Operations should be read in conjunction
with the historical financial statements of the funds which are
incorporated by reference in the Statement of Additional Information.
The pro forma combined statements give effect to the proposed transfer of
the assets and stated liabilities of the Griffin U.S. Government Income
Fund in exchange for shares of WM U.S. Government Securities Fund.
Under generally accepted accounting principles, the historical cost of
investment securities will be carried forward to the surviving entity.
The pro forma combined statements do not reflect the expenses of either
fund in carrying out its obligations under the proposed Agreement and Plan
of Reorganization.
2. Pro Forma Combined Portfolio of Investments
Securities held by the two funds have been combined in the accompanying
Combined Portfolio of Investments. Securities are valued using the pricing
procedures and policies of the respective Acquiring Fund or Acquired Fund,
as applicable. For more information, see the WM Annual Reports or the
Griffin Annual Reports. Historical cost amounts represent the combined cost
basis of the securities.
3. Pro Forma Combined Statements of Assets and Liabilities
Shares outstanding have been adjusted to reflect the conversion of Griffin
U.S. Government Income Fund shares into WM U.S. Government Securities Fund
shares based upon the net asset value of the WM U.S. Government Securities
Fund shares at April 30, 1998.
<PAGE>
WM Tax-Exempt Bond Fund and Griffin Municipal Bond Fund
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
MUNICIPAL TAX-EXEMPT PRO FORMA PRO FORMA
BOND FUND BOND FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
ASSETS:
Investments at value $16,050,011 $326,874,303 $342,924,314
-------------------------------------------------------------
Total Investments 16,050,011 326,874,303 - 342,924,314
Cash/Cash Equivalents 113,191 - 113,191
Receivable for dollar roll fee income - -
Dividends and/or interest receivable 201,916 5,397,398 5,599,314
Receivable for Fund shares Sold 66,816 66,816
Receivable for investment securities sold - -
Unamortized organization costs - -
Receivable from investment advisor - -
Prepaid expenses and other assets 12,360 37,997 50,357
-------------------------------------------------------------
Total Assets 16,377,478 332,376,514 - 348,753,992
LIABILITIES:
Payable for dollar roll transactions - -
Variation margin payable - -
Reverse repurchase agreements - -
Payable for Fund shares redeemed - 815,566 815,566
Payable for investment securities purchased 488,870 509 489,379
Investment advisory fee payable 138,740 138,740
Administration fee payable - -
Shareholder servicing and distribution fees payable 29,231 29,231
Dividends payable 48,756 459,121 507,877
Accrued legal and audit fees 2,128 2,128
Accrued transfer agent fees - -
Accrued Trustees' fees and expenses 2,101 2,101
Accrued registration and filing fees payable 5,502 5,502
Due to Custodian 53,829 53,829
Net Unrealized Depreciation of Fwd For Curr Cts - -
Accrued Expenses and other payables 16,953 169,156 186,109
-------------------------------------------------------------
Total Liabilities 554,579 1,675,883 - 2,230,462
TOTAL NET ASSETS $15,822,899 $330,700,631 $ - $346,523,530
=============================================================
NET ASSETS:
Undistributed net investment income/
(accumulated net investment loss/distributions
in excess of net investment income) $ - $ (1,632) $ (1,632)
Accumulated net realized gain/(loss)
on investments sold, futures contracts,
closed written options, forward foreign currency
contracts and foreign currency transactions (106,519) 784,442 677,923
Net unrealized app./(dep.) of investments,
foreign currency, written options, futures
contracts, forward foreign currency contracts
and other assets and liabilities 344,577 30,033,786 30,378,363
Paid-in capital 15,584,841 299,884,035 315,468,876
-------------------------------------------------------------
TOTAL NET ASSETS $15,822,899 $330,700,631 - $346,523,530
=============================================================
NET ASSETS:
Class A Shares $15,287,168 $316,112,406 $331,399,574
=============================================================
Class B Shares $ 535,731 $ 14,585,662 $ 15,121,393
=============================================================
Class S Shares $ 1,409 $ 1,409
=============================================================
Class I Shares $ 1,154 $ 1,154
=============================================================
SHARES OUTSTANDING:
Class A Shares 1,640,269 39,703,825 279,804 (A) 41,623,898
=============================================================
Class B Shares 57,465 1,831,801 9,817 (A) 1,899,083
=============================================================
Class S Shares 177 - 177
=============================================================
Class I Shares 145 - 145
=============================================================
NET ASSET VALUE PER SHARE:
Class A Shares $ 9.32 $ 7.96 $ 7.96
=============================================================
Class B Shares $ 9.32 $ 7.96 $ 7.96
=============================================================
Class S Shares $ 7.96 $ 7.96
=============================================================
Class I Shares $ 7.96 $ 7.96
=============================================================
</TABLE>
See accompanying notes to pro forma financial statements
- -------------------------------------------------------------------------------
(A) Shares outstanding have been adjusted to reflect the conversion of Griffin
Municipal Bond Fund shares into WM Tax-Exempt Bond Fund shares based upon
the net asset value of WM Tax-Exempt Bond Fund shares at April 30, 1998.
<PAGE>
WM Tax-Exempt Bond Fund and Griffin Municipal Bond Fund
Pro Forma Combined Statement of Operations
For the Period Ended 4/30/98
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
MUNICIPAL TAX-EXEMPT PRO FORMA PRO FORMA
BOND FUND BOND FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income - -
- -
Interest Income $ 204,396 $ 4,682,293 $ 4,886,689
Fee Income - -
------------------------------------------------------------
Total Investment Income 204,396 4,682,293 - 4,886,689
------------------------------------------------------------
EXPENSES:
Investment Advisory Fees 21,111 398,621 419,732
Administration Fees 8,444 - (8,444) (A) -
Custodian Fees 5,985 8,427 14,412
Legal and Audit Fees 9,085 2,128 11,213
Trustees' Fees and Expenses 2,604 2,101 4,705
Amortization of Organization Costs 5,578 - 5,578
Registration and Filing Fees 663 5,502 6,165
Other 1,905 965 2,870
------------------------------------------------------------
Subtotal 55,375 417,744 (8,444) 464,675
Shareholder Servicing and Distribution Fees
Class A Shares 10,168 191,079 5,965 (B) 207,212
Class B Shares 1,548 34,623 87 (C) 36,258
Class S Shares 2 2
Interest Expense - -
Fees Waived and/or Expenses Absorbed by Investment -
Advisor (36,629) - 36,629 (D) -
------------------------------------------------------------
Subtotal 30,462 643,448 34,237 708,147
Fees Reduced by Credits Allowed by the Custodian (596) (596)
------------------------------------------------------------
Net Expenses 30,462 642,852 34,237 707,551
------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 173,934 4,039,441 (34,237) 4,179,138
------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/ -
(LOSS) ON INVESTMENTS -
Realized Gains/(Loss) from: -
Security Transactions 3,983 784,442 788,425
Forward Foreign Currency Contracts and -
Foreign Currency Transactions - -
Futures Contracts 2,577 - 2,577
Net Unrealized Appreciation/(Depreciation) of: -
Securities (196,851) 10,844,992 10,648,141
Forward Foreign Currency Contracts - -
Foreign Currency, Written Options, Futures -
Contracts and Other Assets and - -
Liabilities
------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments (190,291) 11,629,434 - 11,439,143
------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS -
RESULTING FROM OPERATIONS $ (16,357) $15,668,875 $ (34,237) $15,618,281
============================================================
</TABLE>
(A) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(B) Addition of shareholder servicing fee at a monthly rate of $1.45 per
shareholder account.
(C) Addition of shareholder servicing fee at a monthly rate of $1.55 per
shareholder account.
(D) Fees waived and/or expense absorbed by investment advisor has been
eliminated.
<PAGE>
WM Tax-Exempt Bond Fund and Griffin Municipal Bond Fund
Pro Forma Combined Statement of Operations
For the Year Ended 12/31/97
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
MUNICIPAL TAX-EXEMPT PRO FORMA PRO FORMA
BOND FUND BOND FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income - -
- -
Interest Income $ 439,683 $ 11,310,385 $ 11,750,068
Fee Income - -
-----------------------------------------------------------
Total Investment Income 439,683 $ 11,310,385 - $ 11,750,068
-----------------------------------------------------------
EXPENSES: -
Investment Advisory Fees 43,603 987,356 1,030,959
Administration Fees 17,441 - (17,441) (A) -
Custodian Fees 14,921 18,650 33,571
Legal and Audit Fees 12,071 12,426 24,497
Trustees' Fees and Expenses 8,213 8,499 16,712
Amortization of Organization Costs 17,107 - 17,107
Registration and Filing Fees 1,666 18,037 19,703
Other 5,201 60,994 66,195
----------------------------------------------------------
Subtotal 120,223 1,105,962 (17,441) 1,208,744
Shareholder Servicing and Distribution Fees
Class A Shares 20,793 487,713 17,896 (B) 526,402
Class B Shares 4,031 70,823 260 (C) 75,114
Class S Shares - -
Interest Expense - -
Fees Waived and/or Expenses Absorbed by Investment -
Advisor (89,645) - 89,645 (D) -
-----------------------------------------------------------
Subtotal 55,402 1,664,498 90,360 1,810,260
Fees Reduced by Credits Allowed by the Custodian (3,033) (3,033)
-----------------------------------------------------------
Net Expenses 55,402 1,661,465 90,360 1,807,227
-----------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 384,281 9,648,920 (90,360) 9,942,841
-----------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains/(Loss) from:
Security Transactions 8,768 2,286,826 2,295,594
Forward Foreign Currency Contracts and
Foreign Currency Transactions
Futures Contracts 15,098 - 15,098
Net Unrealized Appreciation/(Depreciation) of:
Securities 368,238 4,270,931 4,639,169
Forward Foreign Currency Contracts - -
Foreign Currency, Written Options, Futures
Contracts and Other Assets and Liabilities - -
-----------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments 392,104 6,557,757 - 6,949,861
-----------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 776,385 $ 16,206,677 $ (90,360) $ 16,892,702
===========================================================
</TABLE>
(A) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(B) Addition of shareholder servicing fee at a monthly rate of $1.45 per
shareholder account.
(C) Addition of shareholder servicing fee at a monthly rate of $1.55 per
shareholder account.
(D) Fees waived and/or expense absorbed by investment advisor has been
eliminated.
<PAGE>
WM Tax-Exempt Bond Fund and Griffin Municipal Bond Fund
Pro Forma Combined Portfolio of Investments
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal Amount Market Value
- -------------------------------------------- --------------------------------------------
WM Griffin WM Griffin
Tax-Exempt Bond Municipal Bond Pro Forma Tax-Exempt Bond Municipal Bond Pro Forma
Fund Fund Combined Fund Fund Combined
<S> <C> <C> <C> <C> <C> <C>
LONG-TERM STATE AND MUNICIPAL SECURITIES - 94.8%
ALABAMA
4,000,000 - 4,000,000 Courtland, Industrial Development Board
of Solid Waste, (Champion International
Corporation Project), Disposal Revenue,
AMT, 7.750% due 01/01/2020................ 4,244,680 - 4,244,680
1,000,000 - 1,000,000 Mobile, Industrial Development Board,
Solid Waste Disposal Revenue,
6.950% due 01/01/2020.................... 1,109,880 - 1,109,880
--------------------------------------------
5,354,560 - 5,354,560
ALASKA
Alaska Student Loan Revenue,
- 500,000 500,000 5.25%, 07/01/07 .......................... - 515,625 515,625
1,235,000 - 1,235,000 Anchorage Alaska Electric Utility, (MBIA
Insured) - - -
6.500% due 12/01/2013.................... 1,439,701 - 1,439,701
--------------------------------------------
1,439,701 515,625 1,955,326
ARIZONA
Arizona State University Revenue System,
- 250,000 250,000 7.00%, Pre-refunded to 07/01/02........... - 276,875 276,875
- - - Phoenix, Arizona, Series A, General - - -
- 200,000 200,000 Obligation, 6.25%, 07/01/17 .............. - 227,750 227,750
- - - Salt River Project Agricultural
Improvement & Power District, - - -
3,000,000 - 3,000,000 Series A, - - -
- - - 5.750% due 01/01/2009.................... 3,263,040 - 3,263,040
5,000,000 - 5,000,000 Series C, - - -
- - - 6.250% due 01/01/2019.................... 5,344,100 - 5,344,100
740,000 - 740,000 Tucson, Airport Authority Inc.,
Supplemental Facilities Revenue, AMT, - - -
- - - 8.700% due 09/01/2019.................... 822,621 - 822,621
--------------------------------------------
9,429,761 504,625 9,934,386
CALIFORNIA
15,000,000 - 15,000,000 Anaheim California Public Financing
Authority Lease,
- - - Capital Appreciation Subordinated Public
Improvements, Project-C, (FSA Insured)
- - - Zero coupon due 09/01/2034............... 2,102,850 - 2,102,850
- - - California State Department of Water - - -
- 100,000 100,000 Resources, 5.00%, 12/01/22................ - 95,250 95,250
5,000,000 - 5,000,000 California State General Obligation,
(FGIC Insured), - - -
- - - 5.625% due 10/01/2023................... 5,120,550 - 5,120,550
- - - California State General Obligation, - - -
- 500,000 500,000 5.00%, 10/01/18 .......................... - 481,250 481,250
1,250,000 - 1,250,000 California State Public Works Board Lease, - - -
- - - Department of Corrections , State Prison,
Series E, - - -
- - - 5.500% due 06/01/2015................... 1,305,050 - 1,305,050
2,000,000 - 2,000,000 Center Unified School District
California, - - -
- - - Capital Appreciation-Series C, (MBIA
Insured), GO, - - -
- - - Zero coupon, due 09/01/2018.............. 675,420 - 675,420
2,000,000 - 2,000,000 Foothill/Eastern Corridor Agency,
California Toll Road, - - -
- - - Sr. Lien-Series A, - - -
- - - 5.000% due 01/01/2035.................... 1,839,960 - 1,839,960
550,000 - 550,000 Los Angeles, Regional Airport Improvement,
Series A, AMT, - - -
- - - 6.700% due 01/01/2022.................... 586,872 - 586,872
3,000,000 - 3,000,000 Orange County Recovery Certificate of
Participation, Series A, (MBIA Insured) - - -
- - - 6.000% due 07/01/2026.................... 3,204,570 - 3,204,570
1,173,000 - 1,173,000 Sacramento, California Certificate of
Participation, - - -
- - - Centrex System Lease, Series A, - - -
- - - 5.550% due 09/15/2004.................... 1,178,478 - 1,178,478
5,000,000 - 5,000,000 San Francisco, California City & County
Airport Commission, International Airport, - - -
- - - Second Series-Issue 12-B, (FGIC Insured), - - -
- - - 5.625% due 05/01/2021.................... 5,107,950 - 5,107,950
5,000,000 - 5,000,000 San Joaquin Hills, California
Transportation Corridor, Agency Toll Road, - - -
- - - 5.000% due 01/01/2033.................... 4,628,850 - 4,628,850
800,000 - 800,000 Simi Valley, California Unified School
District Certificate of Participation, - - -
Refunding & Capital Improvement Projects,
(AMBAC Insured), - - -
5.250% due 08/01/2022... 804,312 - 804,312
--------------------------------------------
26,554,862 576,500 27,131,362
COLORADO
Arapahoe County, Colorado Capital
Improvement Trust Fund Highway
Revenue,
- 125,000 125,000 6.90%, Pre-refunded to 08/31/03 .......... - 146,250 146,250
2,225,000 - 2,225,000 Colorado Springs Utilities System Revenue,
Prerefunded, - - -
- - - 6.750% due 11/15/2021.................... 2,447,878 - 2,447,878
2,775,000 - 2,775,000 Colorado Springs Utilities System,
Series C, Unrefunded - - -
- - - 6.750% due 11/15/2021.................... 3,010,376 - 3,010,376
- - - Denver City and County, Airport Revenue,
AMT: - - -
- - - Series A: Prerefunded, - - -
530,000 - 530,000 8.875% due 11/15/2012.................... 618,070 - 618,070
95,000 - 95,000 8.500% due 11/15/2023.................... 106,587 - 106,587
165,000 - 165,000 8.000% due 11/15/2025.................... 183,155 - 183,155
- - - Series A: Unrefunded, - - -
1,470,000 - 1,470,000 8.875% due 11/15/2012.................... 1,682,591 - 1,682,591
1,045,000 - 1,045,000 8.500% due 11/15/2023.................... 1,154,976 - 1,154,976
1,835,000 - 1,835,000 8.000% due 11/15/2025.................... 2,004,095 - 2,004,095
1,920,000 - 1,920,000 Series C, - - -
- - - 6.600% due 11/15/2004.................... 2,080,838 - 2,080,838
4,500,000 - 4,500,000 Meridian Metropolitan District, GO, - - -
7.500% due 12/01/2011 ................... 4,890,240 - 4,890,240
--------------------------------------------
18,178,806 146,250 18,325,056
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WM Tax-Exempt Bond Fund and Griffin Municipal Bond Fund
Pro Forma Combined Portfolio of Investments
Principal Amount April 30, 1998 (Unaudited) Market Value
-------------------------------------- ---------------------------------------
WM Griffin WM Griffin
Tax-Exempt Municipal Pro Forma Tax-Exempt Municipal Pro Forma
Bond Fund Bond Fund Combined Bond Fund Bond Fund Combined
<S> <C> <C> <C> <C> <C> <C>
LONG-TERM STATE AND MUNICIPAL SECURITIES - 94.8%
Connecticut
995,000 - 995,000 Mashantucket Western Pequot Tribe,
Special Revenue, Series A, Prerefunded,
- - - 6.500% due 09/01/2005(B) .................. 1,112,490 - 1,112,490
1,005,000 - 1,005,000 Mashantucket Western Pequot Tribe,
Special Revenue, Series A, Unrefunded, - - -
6.500% due 09/01/2005(B)................... 1,106,254 - 1,106,254
-------------------------------------
2,218,744 - 2,218,744
DIST OF COLUMBIA
- - - District of Columbia Water & Sewer Authority
- - - Public Utility Revenue Bond, - 517,500 517,500
- 500,000 500,000 5.50%, 10/01/17 .............................. - - -
- - - District of Columbia, American Association - - -
- - - for the Advancement of Science, Revenue, - 164,813 164,813
- 150,000 150,000 6.00%, 01/01/09 .............................. - - -
990,000 - 990,000 District of Columbia, COP, - -
- - - 6.875% due 01/01/2003...................... 1,034,114 - 1,034,114
1,500,000 - 1,500,000 Metropolitan District, Washington D.C., Airport
Authority, General Airport - - -
Revenue, Series A, AMT, (MBIA Insured), - - -
6.625% due 10/01/2019...................... 1,629,600 - 1,629,600
-------------------------------------
2,663,714 682,313 3,346,027
FLORIDA
Dade County, Florida Aviation Revenue,
- 200,000 200,000 5.50%, 10/01/07 .............................. - 211,250 211,250
- - - Dade County, Florida General Obligation, - - -
- 200,000 200,000 7.70%, 10/01/08 .............................. - 249,750 249,750
22,520,000 - 22,520,000 Dade County, Guaranteed Entitlement Revenue,
Capital Appreciation, - - -
- - - Series A, (MBIA Insured), - - -
- - - Zero coupon due 02/01/2018................. 7,381,606 - 7,381,606
425,000 - 425,000 Dade County, Seaport Authority, Refunding,
(MBIA Insured), - - -
- - - 6.500% due 10/01/2008...................... 487,624 - 487,624
- - - Florida State Board of Education Capital - - -
- 150,000 150,000 Outlay Public Education, 5.75%, 06/01/15 ..... - 157,688 157,688
5,000,000 - 5,000,000 Orlando Utilities Commission Water & Electric, - - -
6.000% due 10/01/2010...................... 5,591,050 - 5,591,050
-------------------------------------
13,460,280 618,688 14,078,968
GEORGIA
1,000,000 - 1,000,000 Atlanta, Airport Facilities Revenue, AMT,
- - - 7.250% due 01/01/2017 ..................... 1,079,800 - 1,079,800
6,000,000 - 6,000,000 Georgia Municipal Electric Authority Power,
Series Z, (MBIA Insured), - - -
- - - 5.500% due 01/01/2020...................... 6,231,900 - 6,231,900
- - - Georgia State General Obligation, - - -
- 150,000 150,000 7.20%, 03/01/08 .............................. - 179,813 179,813
5,000,000 - 5,000,000 Georgia State, Series B, GO, - - -
- - - 6.300% due 03/01/2009...................... 5,711,700 - 5,711,700
- - - Monroe, PCR, (Oglethorpe Power Company): - - -
5,000,000 - 5,000,000 6.700% due 01/01/2009...................... 5,724,800 - 5,724,800
3,410,000 - 3,410,000 6.750% due 01/01/2010...................... 3,934,080 - 3,934,080
-------------------------------------
22,682,280 179,813 22,862,093
HAWAII
5,555,000 - 5,555,000 Hawaii State, Series BW, GO,
- - - 6.400% due 03/01/2009...................... 6,281,150 - 6,281,150
2,000,000 - 2,000,000 Honolulu, Hawaii City & County, Series A, GO, - - -
- - - 6.000% due 01/01/2012...................... 2,192,020 - 2,192,020
- - - State of Hawaii, General Obligation, - - -
- 150,000 150,000 6.00%, 09/01/09 .............................. - 165,188 165,188
-------------------------------------
8,473,170 165,188 8,638,358
IDAHO
2,000,000 - 2,000,000 Idaho Health Facilities Authority Revenue,
(Inverse Floater),
- - - Escrowed to Maturity,
- - - 7.820% due 02/15/2021 (A).................. 2,384,540 - 2,384,540
- - - Idaho Housing & Finance Association, Single - - -
- 200,000 200,000 Family Mortgage, 5.20%, 07/01/27 ............. - 203,000 203,000
-------------------------------------
2,384,540 203,000 2,587,540
ILLINOIS
3,665,000 - 3,665,000 Chicago Gas Supply (People Gas),
- - - 6.875% due 03/01/2015...................... 3,994,740 - 3,994,740
- - - Chicago, O'Hare Airport Supplemental
Facilities, AMT: - - -
700,000 - 700,000 American Airlines, Special Series A, - - -
- - - 7.875% due 11/01/2025...................... 761,936 - 761,936
6,000,000 - 6,000,000 International Term, (MBIA Insured), - - -
- - - 6.750% due 01/01/2012 ..................... 6,451,800 - 6,451,800
- - - United Air Lines: - - -
615,000 - 615,000 8.400% due 05/01/2004 ..................... 662,380 - 662,380
775,000 - 775,000 8.950% due 05/01/2018 ..................... 870,255 - 870,255
150,000 - 150,000 Special Series B, - - -
- - - 8.500% due 05/01/2018...................... 162,996 - 162,996
4,000,000 - 4,000,000 Chicago Wastewater Transmission Revenue,
Prerefunded, - - -
- - - 6.750% due 11/15/2020...................... 4,326,760 - 4,326,760
- Cook County, Community High School, Number 217,
(AMBAC Insured): - - -
1,090,000 - 1,090,000 6.400% due 12/01/2003..................... 1,161,918 - 1,161,918
1,130,000 - 1,130,000 6.500% due 12/01/2004..................... 1,208,264 - 1,208,264
1,370,000 - 1,370,000 6.600% due 12/01/2005..................... 1,469,394 - 1,469,394
- - - Cook County, School District, Number 026,
(MBIA Insured): - - -
1,445,000 - 1,445,000 Zero coupon due 12/01/2003................. 1,118,372 - 1,118,372
1,020,000 - 1,020,000 Zero coupon due 12/01/2004................. 751,628 - 751,628
- - - Du Page County, Illinois General Obligation - - -
- - - Revenue Bond, Stormwater Project, - - -
- 250,000 250,000 5.60%, 01/01/21 .............................. - 266,563 266,563
- - - Illinois Educational Facilities Authority - - -
- - - Revenue, Northwestern University, - - -
- 450,000 450,000 5.10%, 11/01/32 .............................. - 457,875 457,875
- - - Illinois Health Facilities Authority Revenue: - - -
- - - Glenoak Medical Center, Series D,
Pre-refunded, - - -
210,000 - 210,000 9.500% due 11/15/2015 ..................... 240,603 - 240,603
260,000 - 260,000 Glenoak Medical Center, Series D,
Escrowed to Maturity, - - -
- - - 9.500% due 11/15/2015 ..................... 302,338 - 302,338
4,570,000 - 4,570,000 Hindsdale Hospital, Series B,
Escrowed to Maturity, - - -
- - - 9.000% due 11/15/2015...................... 5,208,658 - 5,208,658
300,000 - 300,000 Riverside Senior Living Center Project,
Prerefunded, - - -
- - - 7.500% due 11/01/2020...................... 328,734 - 328,734
3,000,000 - 3,000,000 Rush Presbyterian - St. Luke's Medical,
Residual Interest Bond, (MBIA Insured), - - -
- - - 9.615% due 10/01/2024 (A)................. 3,517,500 - 3,517,500
1,230,000 - 1,230,000 Servantcor, Series A, Prerefunded, - - -
- - - 8.000% due 08/15/2021...................... 1,386,112 - 1,386,112
5,000,000 - 5,000,000 Sister Services Hospital, Residual Interest
Bond, (MBIA Insured), - - -
- - - 9.267% due 06/19/2015 (A).................. 5,912,500 - 5,912,500
365,000 - 365,000 Illinois Housing Development Authority,
Series A, AMT, - - -
- - - 7.350% due 08/01/2010 ..................... 384,122 - 384,122
5,000,000 - 5,000,000 Illinois State Sales Tax Revenue, Series N,
Prerefunded, - - -
- - - 7.000% due 06/15/2020...................... 5,487,150 - 5,487,150
- - - Metropolitan Pier and Exposition Authority
Dedicated State Tax, (FGIC Insured), - - -
4,000,000 - 4,000,000 Zero coupon due 06/15/2008................. 2,440,480 - 2,440,480
6,000,000 - 6,000,000 Zero coupon due 06/15/2009................. 3,459,960 - 3,459,960
- - - Metropolitan Pier & Exposition Authority - - -
- - - Dedicated State Tax Revenue, - - -
- 400,000 400,000 4.30%, 06/15/01 (C) .......................... - 348,500 348,500
-------------------------------------
51,608,600 1,072,938 52,681,538
</TABLE>
<PAGE>
Portfolio of Investments
<TABLE>
<CAPTION>
WM Tax-Exempt Bond Fund and Griffin Municipal Bond Fund
Pro Forma Combined Portfolio of Investments
Principal Amount April 30, 1998 (Unaudited) Market Value
- ----------------------------------------- --------------------------------------------
WM Griffin WM Griffin
Tax-Exempt Bond Municipal Bond Pro Forma Tax-Exempt Bond Municipal Bond Pro Forma
Fund Fund Combined Fund Fund Combined
<S> <C> <C> <C> <C> <C> <C>
Indiana
6,000,000 - 6,000,000 Indiana Municipal Power Agency,
Series A, (MBIA Insured)
- - - 6.125% due 01/01/2013 6,721,920 - 6,721,920
2,000,000 - 2,000,000 Indianapolis, Public Improvement Board,
Series D, (LOC INB National Bank), - - -
- - - 6.500% due 02/01/2022 2,003,520 - 2,003,520
- - - Wa-Nee Elementary/High School Building - - -
- - - Corporation, Revenue, 6.50%, - - -
- 100,000 100,000 pre-refunded to 01/15/04 - 111,250 111,250
---------------------------------------
8,725,440 111,250 8,836,690
Kentucky
3,000,000 - 3,000,000 Jefferson County, Hospital Revenue,
Residual Interest Bond,
(MBIA Insured),
8.607% due 10/01/2008 (A) 3,506,250 - 3,506,250
Louisiana
1,500,000 - 1,500,000 Louisiana Public Facility Authority
Revenue, Series B, ETM,
Zero coupon due 12/01/2019 473,370 - 473,370
Maryland
5,000,000 - 5,000,000 Mayor & City Council of Baltimore Port
Facility (DuPont),
- - - 6.500% due 10/01/2011 5,439,750 - 5,439,750
930,000 - 930,000 State of Maryland, Community Development
Administration,
Department of Housing Revenue, Single
Family Project, AMT,
7.450% due 04/01/2032 979,671 - 979,671
---------------------------------------
6,419,421 - 6,419,421
Massachusetts
750,000 - 750,000 Commonwealth of Massachusetts, GO,
Consolidated Loan, Series A, Prerefunded,
7.625% due 06/01/2008 836,130 - 836,130
Commonwealth of Massachusetts, Health
and Educational - - -
Facilities Authority Revenue: - - -
500,000 - 500,000 Framingham Union Hospital, Series B, - - -
- - - 8.500% due 07/01/2010 553,725 - 553,725
2,000,000 - 2,000,000 Saint Memorial Medical Center, Series A, - - -
- - - 6.000% due 10/01/2023................... 2,002,240 - 2,002,240
250,000 - 250,000 Commonwealth of Massachusetts, GO,
Pre-refunded, - - -
- - - 7.500% due 12/01/2007 .................. 275,210 - 275,210
- - - Massachusetts Bay Transportation Authority - - -
- - - General Transportation System, - - -
- 200,000 200,000 5.60%, 03/01/08 ......................... - 213,750 213,750
- - - Massachusetts State General Obligation, - - -
- 500,000 500,000 5.00%, 06/01/10 ......................... - 507,500 507,500
- - - Massachusetts State Water Resources Authori - - -
- 100,000 100,000 6.00%, 08/01/14 ......................... - 109,500 109,500
1,000,000 - 1,000,000 Plymouth County, COP, Series A, - - -
7.000% due 04/01/2022 ................... 1,115,140 - 1,115,140
----------------------------------------
4,782,445 830,750 5,613.195
Michigan
Michigan Municipal Bond Authority Revenue,
- 200,000 200,000 6.00%, 10/01/07 ........................... - 222,500 222,500
- - - Michigan State Hospital Financing Authority - - -
- 75,000 75,000 Metropolitan Hospital, 5.88%, 07/01/14 .... - 77,906 77,906
1,500,000 - 1,500,000 Michigan State Hospital Finance Authority
Revenue, - - -
Detroit Medical, Series A, Prerefunded, - - -
7.500% due 08/15/2011..................... 1,673,040 - 1,673,040
Michigan State Underground Storage Tank - - -
Financial Assurance Authority Revenue, - - -
- 300,000 300,000 6.00%, 05/01/05 ........................... - 325,875 325,875
----------------------------------------
1,673,040 626,281 2,299,321
Minnesota
Minnesota Public Facilities Authority Water
- 200,000 200,000 Pollution Control Revenue, 6.00%, 03/01/07 - 222,250 222,250
University of Minnesota, Series A, Revenue - - -
- 200,000 200,000 Bond, 4.75%, 07/01/03 ..................... - 203,750 203,750
---------------------------------------
- 426,000 426,000
Mississippi
Lowndes County, Solid Waste Disposal, PCR,
Residual Interest Bond,
(Weyerhauser Company),
4,000,000 - 4,000,000 6.800% due 04/01/2022.................... 4,796,840 - 4,796,840
5,000,000 - 5,000,000 8.200% due 04/01/2022.................... 5,888,550 - 5,888,550
200,000 - 200,000 Warren County, Solid Waste Disposal Revenue, - - -
(International Paper Project), Series A,
AMT, - - -
7.700% due 11/15/2009 ....................... 212,102 - 212,102
---------------------------------------
10,897,492 - 10,897,492
Missouri
1,000,000 - 1,000,000 Missouri State, Health and Educational
Facilities Authority Revenue,
- - - Bethesda Eye Institute, Prerefunded,
- - - 6.800% due 11/01/2016..................... 1,098,100 - 1,098,100
3,000,000 - 3,000,000 St. Louis, Parking Facilities Revenue, - - -
Prerefunded,
6.625% due 12/15/2021..................... 3,311,250 - 3,311,250
---------------------------------------
4,490,350 - 4,409,350
</TABLE>
<PAGE>
Portfolio of Investments
<TABLE>
<CAPTION>
WM Tax-Exempt Bond Fund and Griffin Municipal Bond Fund
Pro Forma Combined Portfolio of Investments
Principal Amount April 30, 1998 (Unaudited) Market Value
- ------------------------------------------- --------------------------------------------
WM Griffin WM Griffin
Tax-Exempt Bond Municipal Bond Pro Forma Tax-Exempt Bond Municipal Bond Pro Forma
Fund Fund Combined Fund Fund Combined
<S> <C> <C> <C> <C> <C> <C>
MONTANA
1,000,000 - 1,000,000 Forsyth, PCR, Series B, AMT, Puget Sound
Power & Light, (AMBAC Insured),
7.250% due 08/01/2021...................... 1,090,640 - 1,090,640
NEBRASKA
Douglas County, Hospital Authority Revenue,
Alegent Health, Immanuel Medical Center:
1,000,000 - 1,000,000 5.250% due 09/01/2021...................... 982,760 - 982,760
600,000 - 600,000 Nebraska Investment Finance Authority,
Single Family Housing Revenue, - - -
Residual Interest Bond, AMT, (GNMA Insured), - - -
9.159% due 09/15/2024 (A).................. 670,500 - 670,500
Omaha Public Power District Electric, - - -
7,000,000 - 7,000,000 Series B, Escrowed to Maturity, - - -
6.150% due 02/01/2012...................... 7,823,970 - 7,823,970
Series C, - - -
5.500% due 02/01/2014...................... 2,107,960 - 2,107,960
-----------------------------------------
11,585,190 - 11,585,190
NEVADA
4,000,000 - 4,000,000 Clark County, IDR, Series A, Nevada Power
Company, AMT, (FGIC Insured),
6.700% due 06/01/2022...................... 4,324,480 - 4,324,480
Nevada State General Obligation, - - -
- 100,000 100,000 5.80%, 07/15/08.............................. - 106,625 106,625
-----------------------------------------
4,324,480 106,625 4,431,105
NEW JERSEY
New Jersey State General Obligation,
- 350,000 350,000 6.00%, 02/15/11.............................. - 387,625 387,625
NEW MEXICO
1,000,000 - 1,000,000 Bernaillo County New Mexico, Gross Receipts
of Tax Revenue,
5.250% due 04/01/2027...................... 1,013,400 - 1,013,400
1,500,000 - 1,500,000 Lordsburg Pollution Control (Phelps Dodge), - - -
6.500% due 04/01/2013...................... 1,639,365 - 1,639,365
1,500,000 - 1,500,000 Santa Fe County, New Mexico Correctional
System, (FSA Insured), - - -
6.000% due 02/01/2027...................... 1,682,730 - 1,682,730
-----------------------------------------
4,335,495 - 4,335,495
NEW YORK
1,265,000 - 1,265,000 Metropolitan Transportation Authority,
Service Contract Transportation Facilities,
Series 7,
4.750% due 07/01/2019...................... 1,145,635 - 1,145,635
New York, GO, Unrefunded: - - -
Series B, (FSA Insured), - - -
1,000,000 - 1,000,000 7.000% due 06/01/2014...................... 1,083,410 - 1,083,410
160,000 - 160,000 8.250% due 11/15/2018...................... 180,197 - 180,197
1,000,000 - 1,000,000 New York, NY, Series B, (FGIC Insured) - - -
6.000% due 08/01/2007...................... 1,091,850 - 1,091,850
New York State Medical Care Facilities
Finance Agency Revenue, - - -
170,000 - 170,000 Prerefunded, - - -
7.750% due 08/15/2011...................... 188,705 - 188,705
105,000 - 105,000 Refunded, - - -
7.750% due 08/15/2011...................... 115,266 - 115,266
2,000,000 - 2,000,000 New York State Housing Finance Agency
Revenue, Multi-family Housing, - - -
Second Mortgage, Series F, AMT, - - -
6.625% due 08/15/2012...................... 2,122,540 - 2,122,540
New York State Environmental Facilities - - -
Corporation Pollution Control Revenue, - - -
- 200,000 200,000 5.50%, 06/15/09.............................. - 211,750 211,750
New York State Environmental Facilities, - - -
State Clean Water & Drinking, Revolving - - -
- 500,000 500,000 Funds, Series C, 500%, 06/15/19.............. - 480,625 480,625
New York, New York General Obligation, - - -
- 200,000 200,000 6.00%, 02/01/04.............................. - 212,250 212,250
New York City TFA Future, - - -
- 500,000 500,000 5.00%, 05/01/ 18............................. - 479,375 479,375
-----------------------------------------
5,927,603 1,384,000 7,311,603
NORTH CAROLINA
5,000,000 - 5,000,000 North Carolina Eastern Municipal Power
Agency, Power Systems Revenue,
Series A,
5.700% due 01/01/2013...................... 5,701,200 - 5,701,200
NORTH DAKOTA
4,370,000 - 4,370,000 Mercer County Pollution Control
(Otter Trail Power),
6.900% due 02/01/2019...................... 4,676,774 - 4,676,774
OHIO
Cleveland, Ohio General Obligation, - - -
- 350,000 350,000 5.38%, 09/01/09.............................. - 370,563 370,563
Franklin County, Ohio Hospital Revenue, Holy - - -
Cross Health Systems Corporation, - - -
- 300,000 300,000 5.50%, 06/01/01.............................. - 310,500 310,500
1,240,000 - 1,240,000 Lorain County, Hospital Revenue, Series B,
Humility of Mary Health Care, - - -
Escrowed to Maturity, - - -
7.200% due 12/15/2011...................... 1,381,596 - 1,381,596
Ohio State Water Department Authority Revenue - - -
Fresh Water Series, Revenue, - - -
- 200,000 200,000 5.70%, 06/01/09.............................. - 213,250 213,250
University of Cincinnati, General Receipts, - - -
- 500,000 500,000 Series AA, 5.00%, 06/01/18................... - 480,625 480,625
-----------------------------------------
1,381,596 1,374,938 2,756,534
OKLAHOMA
1,810,000 - 1,810,000 Oklahoma Housing and Finance Authority,
Single Family Revenue, Series B,
AMT, (GNMA Insured), 7.997%
due 08/01/2018............................. 2,080,921 - 2,080,921
200,000 - 200,000 Tulsa, Municipal Airport Revenue,
American Airlines Project, AMT, - - -
7.600% due 12/01/2030...................... 218,634 - 218,634
-----------------------------------------
2,299,555 - 2,299,555
OREGON
Oregon State Department of Transportation
Revenue, Regional Light Rail Fund - Westside
100,000 100,000 Project, 6.25%, 06/01/09 .................... - 110,125 110,125
6,230,000 - 6,230,000 Washington County, Oregon, (Criminal
Justice Facilities), Prerefunded, - - -
6.000% due 12/01/2012...................... 6,766,528 - 6,766,528
-----------------------------------------
6,766,528 110,125 6,876,653
PENNSYLVANIA
Allegheny County, Hospital Development
Revenue, (Ohio Valley General Hospital):
700,000 - 700,000 5.100% due 04/01/2001...................... 708,575 - 708,575
735,000 - 735,000 5.300% due 04/01/2002...................... 750,192 - 750,192
625,000 - 625,000 5.400% due 04/01/2003...................... 641,644 - 641,644
Beaver County, IDR, PCR, (Edison Project),
Series A: - - -
300,000 - 300,000 7.750% due 09/01/2024 ..................... 315,015 - 315,015
3,675,000 - 3,675,000 (FGIC Insured), - - -
7.000% due 06/01/2021...................... 3,975,358 - 3,975,358
Commonwealth of Pennsylvania General - - -
- 250,000 250,000 Obligation, 5.20%, 06/15/04 ................. - 260,313 260,313
600,000 - 600,000 Lehigh County, General Purpose Authority,
Muhlenberg Hospital Center, Series A, - - -
Prerefunded, - - -
8.100% due 07/15/2010 ..................... 640,794 - 640,794
500,000 - 500,000 McKean County, Hospital Authority Revenue,
Bradford Hospital, - - -
Pottstown Memorial Medical Center, - - -
8.875% due 10/01/2020 ..................... 560,100 - 560,100
1,250,000 - 1,250,000 Montgomery County, Higher Education Revenue, - - -
6.875% due 11/15/2020 ..................... 1,343,425 - 1,343,425
Pennsylvania State Higher Education Revenue,
Student Loan, - - -
3,000,000 - 3,000,000 Residual Interest Bond, AMT, (AMBAC Insured), - - -
9.368% due 09/01/2026 (A).................. 3,450,000 - 3,450,000
1,890,000 - 1,890,000 Pennsylvania State Higher Educational
Facilities Authority, Series B,
Prerefunded, - - -
7.250% due 03/01/2005...................... 2,073,651 - 2,073,651
Pennsylvania State Industrial Development - - -
- 250,000 250,000 Authority Revenue, 7.00%, 07/01/06 .......... - 288,750 288,750
1,000,000 - 1,000,000 Philadelphia, Municipal Authority Revenue,
Series B, (FGIC Insured), Prerefunded, - - -
7.125% due 11/15/2018...................... 1,110,990 - 1,110,990
1,000,000 - 1,000,000 Philadelphia, Water and Sewer Revenue,
Prerefunded, - - -
7.500% due 08/01/2010...................... 1,115,270 - 1,115,270
-----------------------------------------
16,685,014 549,063 17,234,077
PUERTO RICO
Puerto Rico Electric Power Authority,
- 200,000 200,000 Electric Revenue, 6.13%, 07/01/08 ........... - 223,000 223,000
Puerto Rico Industrial Tourist Educational - - -
Medical & Environmental Central Facilities, - - -
Inter American University, Series A, - - -
- 500,000 500,000 5.00%, 10/01/15 ............................. - 492,500 492,500
-----------------------------------------
- 715,500 715,500
RHODE ISLAND
2,000,000 - 2,000,000 Rhode Island State Health and Education
Revenue, Residual Interest Bond, (FGIC
Insured), Escrowed to Maturity,
9.715% due 08/15/2021 (A).................. 2,377,500 - 2,377,500
SOUTH CAROLINA
Columbia, South Carolina Water Works & Sewer
- 200,000 200,000 Systems Revenue, 5.38%, 02/01/12 ............ - 209,250 209,250
SOUTH DAKOTA
South Dakota Housing Development Authority,
- 100,000 100,000 Homeownership Mortgage, 6.65%, 05/01/14 - 108,125 108,125
TENNESSEE
Kingsport, Tennessee General Obligation,
- 200,000 200,000 5.60%, 09/01/03 ............................. - 210,750 210,750
TEXAS
Austin, Texas General Obligation,
- 200,000 200,000 5.70%, 09/01/07 ............................. - 216,250 216,250
415,000 - 415,000 Brazos, Higher Educational Facilities
Authority, Series C-2, AMT, - - -
7.100% due 11/01/2004...................... 457,674 - 457,674
1,290,000 - 1,290,000 Crowley Texas Independent School District,
(FGIC Insured), GO, - - -
Zero coupon, due 08/01/2016................ 486,898 - 486,898
5,000,000 - 5,000,000 Dallas-Fort Worth International Airport,
(Facility Improvement - - -
Corporate Revenue), (American Airlines,
Inc.), AMT, - - -
7.500% due 11/01/2025...................... 5,395,000 - 5,395,000
Harris County, Texas Tax and Revenue - - -
- 200,000 200,000 Certificate of Obligation, 6.00%, 12/15/10 .. - 223,500 223,500
San Antonio, Texas Electric & Gas Revenue, - - -
- 100,000 100,000 5.00%, 02/01/14 ............................. - 98,250 98,250
Texas Municipal Power Agency Revenue, - - -
- 200,000 200,000 5.25%, 09/01/08 ............................. - 208,250 208,250
574,000 - 574,000 Texas State, Higher Education Coordinating
Board, Student Loan, AMT, - - -
7.700% due 10/01/2025 ..................... 615,678 - 615,678
500,000 - 500,000 West Side Calhoun County, Solid Waste Revenue
Bond, (Union Carbide Project), AMT, - - -
8.200% due 03/15/2021 ..................... 552,905 - 552,905
-----------------------------------------
7,508,155 746,250 8,254,405
VERMONT
Vermont Housing Finance Agency, Single Family,
Series 1, AMT:
140,000 - 140,000 6.800% due 05/01/2025...................... 145,702 - 145,702
220,000 - 220,000 8.150% due 05/01/2025 ..................... 232,375 - 232,375
-----------------------------------------
378,077 - 378,077
VIRGINIA
Virginia State Transportation Board Revenue,
North Virginia Transportation District
- 120,000 120,000 Program, 6.25%, 05/15/12 .................... - 131,850 131,850
WASHINGTON
4,500,000 - 4,500,000 King County Washington School District #415
Kent, Series C, GO,
6.300% due 12/01/2008...................... 5,080,815 - 5,080,815
950,000 - 950,000 Port Anacortes Washington Revenue, Series A, - - -
5.125% due 09/01/2009...................... 935,665 - 935,665
Seattle, Washington Water System Revenue, - - -
- 250,000 250,000 5.25%, 12/01/23 ........................... - 249,688 249,688
2,750,000 - 2,750,000 Snohomish County School District #2- Everett
General Obligation, Series B, - - -
Prerefunded, - - -
7.200% due 12/01/2010...................... 2,980,698 - 2,980,698
University of Washington Revenue Bond,
(MBIA Insured), - - -
3,400,000 - 3,400,000 Prerefunded, - - -
7.000% due 12/01/2021...................... 3,766,894 - 3,766,894
785,000 - 785,000 Unrefunded, - - -
7.000% due 12/01/2021...................... 859,104 - 859,104
3,500,000 - 3,500,000 Washington Public Power Supply System
Nuclear Project #2 Revenue, Series C, - - -
Prerefunded, - - -
7.625% due 07/01/2010...................... 3,859,730 - 3,859,730
7,570,000 - 7,570,000 Washington State, Series B, GO, - - -
5.000% due 05/01/2017...................... 7,335,330 - 7,335,330
4,900,000 - 4,900,000 Washington State, Series B & AT-7, GO, - - -
6.400% due 06/01/2017...................... 5,687,479 - 5,687,479
Washington State Health Care Facilities
Authority, Fred Hutchinson Cancer Center, - - -
LOC, - - -
1,750,000 - 1,750,000 7.200% due 01/01/2007...................... 1,899,923 - 1,899,923
1,750,000 - 1,750,000 7.375% due 01/01/2018...................... 1,905,225 - 1,905,225
Washington State General Obligation, - - -
- 200,000 200,000 5.75%, 09/01/09 ........................... - 216,500 216,500
-----------------------------------------
34,310,863 466,188 34,777,051
WEST VIRGINIA
2,500,000 - 2,500,000 Harrison County, Solid Waste Disposal,
(Monongahela Power), Series A, AMT,
6.875% due 04/15/2022 ..................... 2,707,025 - 2,707,025
150,000 - 150,000 Kanawha County, IDR, (Union Carbide Project),
Series A, AMT, - - -
8.000% due 08/01/2020...................... 161,918 - 161,918
750,000 - 750,000 South Charleston, IDR, (Union Carbide Project),
Series A, AMT, - - -
8.000% due 08/01/2020 ..................... 807,420 - 807,420
West Virginia State, General Obligation, - - -
- 500,000 500,000 5.00%, 11/01/21 ........................... - 480,625 480,625
-----------------------------------------
3,676,363 480,625 4,156,988
WISCONSIN
1,000,000 - 1,000,000 Madison, IDR, (Madison Gas & Electric Company),
(Project A), AMT,
6.750% due 04/01/2027...................... 1,069,520 - 1,069,520
1,000,000 - 1,000,000 Wisconsin Health & Education Facility
Authority, - - -
Refunding Waukesha Memorial Hospital,
Series A, (AMBAC Insured) - - -
7.125% due 08/15/2007...................... 1,080,520 - 1,080,520
Wisconsin State General Obligation, - - -
- 200,000 200,000 5.13%, 11/01/07 ........................... - 207,250 207,250
Wisconsin State Transportation Revenue, - - -
- 200,000 200,000 5.50%, 07/01/14 ........................... - 203,750 203,750
-----------------------------------------
2,150,040 411,000 2,561,040
Total Long-Term State and
Municipal Securities 320,510,899 14,051,135 334,562,034
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WM TAX-EXEMPT BOND FUND AND GRIFFIN MUNICIPAL BOND FUND
PRO FORMA COMBINED PORTFOLIO OF INVESTMENTS
PRINCIPAL AMOUNT APRIL 30, 1998 (Unaudited) MARKET VALUE
------------------------------------------ --------------------------------------------
WM TAX-EXEMPT GRIFFIN MUNICIPAL PRO FORMA WM TAX-EXEMPT GRIFFIN MUNICIPAL PRO FORMA
BOND FUND BOND FUND COMBINED BOND FUND BOND FUND COMBINED
SHORT-TERM STATE AND MUNICIPAL SECURITIES - 0.6%
<S> <C> <C> <C>
FLORIDA
Citrus Park Community Development District
Florida, Capital Improvements,
- 400,000 400,000 3.35%, 11/01/16............................... - 400,000 400,000
KANSAS
Kansas City, Kansas Industrial Revenue,
- 100,000 100,000 5.00%, 08/01/15............................... - 100,000 100,000
LOUISIANA
Louisiana Loops VRUM UG
- 100,000 100,000 5.00%, 09/01/08............................... - 100,000 100,000
MICHIGAN
Michigan State Hospital Financing Authority,
- 400,000 400,000 Kent Hospital, 5.00%, 01/15/20................ - 400,000 400,000
NEW MEXICO
Albuquerque, New Mexico lodgers tax,
- 100,000 100,000 3.00%, 07/01/22............................... - 100,000 100,000
OHIO
Ohio State Water Development Authority,
- 200,000 200,000 5.00%, 07/01/32............................... - 200,000 200,000
TEXAS
Guadalupe Blanco River Authority Texas
Pollution Control Revenue, Central Power &
- 300,000 300,000 Light Project, 5.00%, 11/01/15................ - 300,000 300,000
WYOMING
Kemerer County, Wyoming Pollution Control
- 100,000 100,000 Revenue, 5.00%, 11/01/14 ..................... - 100,000 100,000
Kemerer County, Wyoming Pollution Control
- 200,000 200,000 Revenue, 5.00%, 11/01/14 ..................... - 200,000 200,000
Total Short-Term State and Municipal Securities - 1,900,000 1,900,000
INVESTMENT COMPANIES - 1.8%
Seven Seas Tax Free Money Market Fund,
- 98,879 98,879 3.39%, 05/01/98 .............................. - 98,876 98,876
6,363,404 - 6,363,404 Nuveen Tax Exempt Money Market Fund
(Cost $6,363,404)............................. 6,363,404 - 6,363,404
---------------------------------------
6,363,404 98,876 6,462,280
TOTAL INVESTMENTS - 97.2% (COST $312,545,951) 326,874,303 16,050,011 342,924,314
OTHER ASSETS AND LIABILITIES, NET - 2.8% 3,826,328 (227,112) 3,599,216
TOTAL NET ASSETS - 100.0% 330,700,631 15,822,899 346,523,530
</TABLE>
- --------------------------------------------------------------------------------
(A) Floating rate note. The interest rate shown reflects the rate currently in
effect.
(B) Securities exempt from registration under section 4(2) of the Securities
Act of 1993, as amended. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
(C) Rate on this zero coupon bonds represents annualized yield to maturity at
April 30, 1998.
<PAGE>
WM TAX-EXEMPT BOND FUND & GRIFFIN MUNICIPAL BOND FUND
Notes to Pro Forma Combined Financial Statements (Unaudited)
1. Basis of Combination
The pro forma combined financial statements reflect the pro forma combined
financial position of the WM Tax-Exempt Bond Fund and the Griffin Municipal
Bond Fund at April 30, 1998 and the pro forma combined results of
operations for the year ended December 31, 1997 and the four month period
ended April 30, 1998 as though the reorganization had occurred on January
1, 1997.
The pro forma combined financial statements are presented for the
information of the reader and may not necessarily be representative of how
the pro forma combined financial statements would have appeared had the
reorganization actually occurred.
The Pro Forma Combined Portfolio of Investments, Statement of Assets and
Liabilities, and the Statement of Operations should be read in conjunction
with the historical financial statements of the funds which are
incorporated by reference in the Statement of Additional Information.
The pro forma combined statements give effect to the proposed transfer of
the assets and stated liabilities of the Griffin Municipal Bond Fund in
exchange for shares of WM Tax-Exempt Bond Fund. Under generally accepted
accounting principles, the historical cost of investment securities will be
carried forward to the surviving entity.
The pro forma combined statements do not reflect the expenses of either
fund in carrying out its obligations under the proposed Agreement and Plan
of Reorganization.
2. Pro Forma Combined Portfolio of Investments
Securities held by the two funds have been combined in the accompanying
Combined Portfolio of Investments. Securities are valued using the pricing
procedures and policies of the respective Acquiring Fund or Acquired Fund,
as applicable. For more information, see the WM Annual Reports or the
Griffin Annual Report. Historical cost amounts represent the combined cost
basis of the securities.
3. Pro Forma Combined Statements of Assets and Liabilities
Shares outstanding have been adjusted to reflect the conversion of Griffin
Municipal Bond Fund shares into WM shares based upon the asset value of the
WM Tax-Exempt Bond Fund shares at April 30, 1998.
<PAGE>
WM California Municipal Fund & Griffin California Tax-Free Fund
Pro Forma Statement of Assets and Liabilities at
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
CALIFORNIA CALIFORNIA PRO FORMA PRO FORMA
TAX-FREE FUND MUNICIPAL FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
ASSETS:
Investments at value $ 46,256,980 $ 331,858,243 $ 378,115,223
----------------------------------------------------------------------
Total Investments 46,256,980 331,858,243 - 378,115,223
Cash/Cash Equivalents 308,408 - 308,408
Receivable for dollar roll fee income - -
Dividends and/or interest receivable 725,260 5,043,338 5,768,598
Receivable for Fund shares Sold - 773,513 773,513
Receivable for investment securities sold - 9,172,268 9,172,268
Unamortized organization costs - - -
Receivable from investment advisor - - -
Prepaid expenses and other assets 8,203 2,984 11,187
----------------------------------------------------------------------
Total Assets 47,298,851 346,850,346 - 394,149,197
======================================================================
LIABILITIES:
Payable for dollar roll transactions - -
Variation margin payable - -
Reverse repurchase agreements - -
Payable for Fund shares redeemed - 182,853 182,853
Payable for investment securities purchase 1,511,595 19,646,770 21,158,365
Investment advisory fee payable 178,669 178,669
Administration fee payable - -
Shareholder servicing and distribution fees payable 86,945 86,945
Dividends payable 148,984 492,746 641,730
Accrued legal and audit fees - -
Accrued transfer agent fees - -
Accrued Trustees' fees and expenses - -
Accrued registration and filing fees payable - -
Due to Custodian 1,262,975 1,262,975
Net unrealized depreciation of fwd for cur cts - -
Accrued Expenses and other payables 42,914 125,434 168,348
----------------------------------------------------------------------
Total Liabilities 1,703,493 21,976,392 23,679,885
TOTAL NET ASSETS $ 45,595,358 $ 324,873,954 $ - $ 370,469,312
======================================================================
NET ASSETS:
Undistributed net investment income/
(accumulated net investment loss/distributions
in excess of net investment income) $ - $ (6,864) $ (6,864)
Accumulated net realized gain/(loss)
on investments sold, futures contracts,
closed written options, forward foreign currency
contracts and foreign currency transactions (132,408) 581,668 449,260
Net unrealized app./(dep.) of investments,
foreign currency, written options, futures
contracts, forward foreign currency contracts
and other assets and liabilities 1,637,081 24,496,679 26,133,760
Paid-in capital 44,090,358 299,802,471 343,893,156
----------------------------------------------------------------------
TOTAL NET ASSETS $ 45,595,358 $ 324,873,954 $ - $ 370,469,312
======================================================================
NET ASSETS:
Class A Shares $ 38,503,430 $ 290,328,335 $ 328,831,765
======================================================================
Class B Shares $ 7,091,928 $ 34,536,784 $ 41,628,712
======================================================================
Class S Shares $ 7,645 $ 7,645
======================================================================
Class I Shares $ 1,190 $ 1,190
======================================================================
SHARES OUTSTANDING:
Class A Shares 4,593,384 25,624,319 (1,195,079) (A) 29,022,624
======================================================================
Class B Shares 845,712 3,048,310 (219,759) (A) 3,674,263
======================================================================
Class S Shares 675 675
======================================================================
Class I Shares 105 105
======================================================================
NET ASSET VALUE PER SHARE:
Class A Shares $ 8.38 $ 11.33 $ 11.33
======================================================================
Class B Shares $ 8.39 $ 11.33 $ 11.33
======================================================================
Class S Shares $ 11.33 $ 11.33
======================================================================
Class I Shares $ 11.33 $ 11.33
======================================================================
</TABLE>
See accompanying notes to pro forma financial statements
- --------------------------------------------------------------------------------
(A) Shares outstanding have been adjusted to reflect the conversion of Griffin
California Tax-Free Fund shares into WM California Municipal Fund based
upon the net asset value of WM California Municipal Fund shares at
June 30, 1998.
<PAGE>
WM California Municipal Fund and
Griffin California Tax-Free Fund
Pro Forma Combined Statement of Operations
For the Year Ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN
CALIFORNIA WM CALIFORNIA PRO FORMA PRO FORMA
TAX-FREE FUND MUNICIPAL FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income - -
Foreign withholding tax on dividend income - -
Interest Income 1,735,944 20,795,207 22,531,151
Fee Income - -
---------------------------------------------------------------------------
Total Investment Income 1,735,944 20,795,207 - 22,531,151
---------------------------------------------------------------------------
EXPENSES:
Investment Advisory fee 173,723 2,010,319 416,614 (A) 2,600,656
Administration fee 69,489 860,498 (929,987) (B) -
Custodian fee 15,635 17,049 32,684
Legal and Audit fees 24,073 37,650 61,723
Trustees' fees and expenses 8,198 25,532 33,730
Amortization of organization costs 17,108 - 17,108
Registration and filing fees 5,143 15,775 20,918
Transfer agent fees - 34,691 108,554 (C) 143,245
Other 3,929 180,228 184,157
---------------------------------------------------------------------------
Subtotal 317,298 3,147,051 (513,373) 2,950,976
Shareholder servicing and distribution fees -
Class A Shares 73,250 771,965 845,215
Class B Shares 54,446 279,831 334,277
Class S Shares 75 75
Interest expense -
Fees waived and/or expenses absorbed by
investment advisor (177,998) (656,426) (317,295) (D) (1,151,719)
---------------------------------------------------------------------------
Subtotal 266,996 3,577,187 (722,114) 3,122,069
Fees reduced by credits allowed by the custodian (13,157) (13,157)
---------------------------------------------------------------------------
Net expenses 266,996 3,564,030 (722,114) 3,108,912
---------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 1,468,948 17,231,177 722,114 19,422,239
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized gain from security transactions
Security transactions 243,856 7,849,255 8,093,111
Forward foreign currency contracts and
foreign currency transactions - -
Futures contracts 51,511 994,551 1,046,062
Net unrealized appreciation/(depreciation) of:
Securities 792,224 3,864,365 4,656,589
Forward foreign currency contracts - -
Foreign currency, written options, futures
contracts and other assets and
liabilities - -
---------------------------------------------------------------------------
Net realized/unrealized gains/(losses) on invsts 1,087,591 12,708,171 - 13,795,762
---------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS -
RESULTING FROM OPERATIONS 2,556,539 29,939,348 722,114 33,218,001
===========================================================================
</TABLE>
(A) Increase in management fees for Griffin shareholders to reflect the new fee
structure. Fees are based on .70% of average daily net assets up to
$500,000,000 and .55% of average daily net assets over that amount.
(B) Elimination of the administration fees, now incorporated in the management
fee structure.
(C) Addition of transfer agent fee at a monthly rate of $1.45 per Class A
shareholder account and $1.55 per Class B shareholder account.
(D) Fees waived and/or expense absorbed by investment advisor adjusted to .31%
of average daily net assets.
<PAGE>
<TABLE>
<CAPTION>
WM CALIFORNIA MUNICIPAL FUND AND
GRIFFIN CALIFORNIA TAX-FREE FUND
PRINCIPAL AMOUNT PRO FORMA COMBINED PORTFOLIO OF INVESTMENTS VALUE
- -------------------------------------------- --------------------------------------
WM GRIFFIN JUNE 30, 1998 (Unaudited) WM GRIFFIN
CALIFORNIA CALIFORNIA PRO FORMA CALIFORNIA CALIFORNIA PRO FORMA
MUNICIPAL FUND TAX-FREE FUND COMBINED MUNICIPAL FUND TAX-FREE FUND COMBINED
LONG-TERM MUNICIPAL BONDS AND NOTES - 100.6%
CALIFORNIA - 99.7%
<S> <C> <C> <C> <C> <C> <C>
$ 5,360,000 - $ 5,360,000 Alhambra, Improvement Board Act of 1915,
- - - Assessment District No. 1, Public Works,
(MBIA Insured),
- - - 6.125% due 09/02/2018......................... $ 5,755,300 - $ 5,755,300
2,000,000 - 2,000,000 Anaheim, Public Financing Authority Revenue,
Residual Interest
- - - Bond, (MBIA Insured),
- - - 8.930% due 12/28/2018 (A)..................... 2,565,000 - 2,565,000
1,000,000 - 1,000,000 Arcadia, Hospital Revenue Authority, (Methodist
Hospital),
- - - 6.500% due 11/15/2012......................... 1,070,000 - 1,070,000
2,000,000 - 2,000,000 Barstow Redevelopment Agency, Central
- - - Redevelopment Project, Tax Allocation, Series
- - - A, (MBIA Insured), 7.000% due 09/01/2014...... 2,465,000 - 2,465,000
1,000,000 - 1,000,000 Brawley, Wastewater Treatment Facility,
- - - (AMBAC Insured),
- - - 5.000% due 07/01/2016......................... 1,006,250 - 1,006,250
1,000,000 - 1,000,000 Brea & Olinda, Unified School District, (High
- - - School Refinancing Project), COP, Series A,
(FSA Insured),
- - - 6.000% due 08/01/2009......................... 1,076,250 - 1,076,250
- $1,100,000 1,100,000 CA ABAG COP Episcopal Ho
- - - 5.00%, 07/01/07 ......................... - $1,116,500 1,116,500
- 500,000 500,000 California Educational Facilities Authority
- - - Revenue Bond, Pooled College & University
- - - Project, Series A, 5.15%, 12/01/04............ - 520,000 520,000
4,715,000 - 4,715,000 California Educational Facilities Authority
- - - Revenue, (College of Osteopathic Medicine),
(Pre-refunded to 06/01/2003),
- - - 7.500% due 06/01/2018......................... 5,428,144 - 5,428,144
- 1,000,000 1,000,000 California Educational Facilities Authority
- - - Revenue, University of San Diego,
- - - 5.00%, 10/01/22 - 976,250 976,250
- - - California Health Facilities Authority Revenue:
1,000,000 - 1,000,000 (Kaiser Permanent), Series A, (FSA Insured)
- - - 7.000% due 12/01/2010......................... 1,080,000 - 1,080,000
10,250,000 - 10,250,000 (Enloe Health Systems), Series A, -
- - - 5.000% due 11/15/2028......................... 9,916,875 - 9,916,875
- 500,000 500,000 California Health Facilities Financing
- - - Authority Revenue, Downey Community
- - - Hospital, 5.20%, 05/15/03.................... - 514,375 514,375
- 300,000 300,000 California Health Facilities Financing
- - - Authority Revenue, Kaiser Permanente,
- - - Series C, 5.60%, 05/01/33.................... - 301,500 301,500
- - - California Housing Finance Agency, Home Mortgage,
AMT:
- - - Series A, (Multi-family Housing III), (MBIA
Insured):
1,000,000 - 1,000,000 5.850% due 08/01/2017........................ 1,056,250 - 1,056,250
3,000,000 - 3,000,000 5.950% due 08/01/2028........................ 3,153,750 - 3,153,750
- - - Series B, (MBIA Insured):
- 500,000 500,000 5.200% due 08/01/2026........................ - 510,625 510,625
1,000,000 - 1,000,000 6.000% due 08/01/2016........................ 1,062,500 - 1,062,500
2,000,000 - 2,000,000 6.100% due 02/01/2028........................ 2,122,500 - 2,122,500
1,000,000 - 1,000,000 Series N, (FHA/VA Insured),
- - - 6.375% due 02/01/2027........................ 1,078,750 - 1,078,750
- - - California Housing Finance Agency, Home
- - - Ownership & Improvement Revenue:
1,500,000 - 1,500,000 Series 1988G, AMT, (FHA Insured),
- - - 8.150% due 08/01/2019....................... 1,531,305 - 1,531,305
2,150,000 - 2,150,000 Series 1989D, AMT, (FHA Insured),
- - - 7.500% due 08/01/2020....................... 2,227,701 - 2,227,701
5,010,000 - 5,010,000 Series C, AMT, (FHA Insured),
- - - 6.650% due 08/01/2014....................... 5,423,325 - 5,423,325
665,000 - 665,000 Series D, AMT, (MBIA Insured),
- - - 6.300% due 08/01/2014....................... 709,888 - 709,888
2,630,000 - 2,630,000 Series F, AMT, (MBIA Insured),
- - - 6.800% due 08/01/2014....................... 2,889,712 - 2,889,712
3,385,000 - 3,385,000 Series F-2, (FHA Insured),
- - - 7.250% due 08/01/2016....................... 3,698,113 - 3,698,113
- - - California, Pollution Control Financing Authority,
1,000,000 - 1,000,000 PCR (Keller Canyon Landfill Company Project),
AMT,
- - - 6.875% due 11/01/2027............................ 1,101,250 - 1,101,250
2,890,000 - 2,890,000 (Mobile Oil Corporation Project),
- - - 5.500% due 12/01/2029............................ 2,944,188 - 2,944,188
2,500,000 - 2,500,000 (San Diego Gas and Electric), Series A, AMT,
(AMBAC Insured),
- - - 5.850% due 06/01/2021.......................... 2,621,875 - 2,621,875
- - - (Southern California Edison Company):
13,250,000 - 13,250,000 Series B, AMT, (AMBAC Insured),
- - - 6.400% due 12/01/2024.......................... 14,492,188 - 14,492,188
5,000,000 - 5,000,000 Series B, AMT, (FGIC Insured),
- - - 6.400% due 12/01/2024.......................... 5,468,750 - 5,468,750
6,565,000 - 6,565,000 (Tracy Material Recovery Project), Series A, AMT,
- - - 6.600% due 08/01/2014.......................... 6,664,854 - 6,664,854
5,000,000 - 5,000,000 (Waste Management), Series A, AMT,
- - - 7.150% due 02/01/2011.......................... 5,425,000 - 5,425,000
3,100,000 - 3,100,000 (Waste Removal Systems), Series A, AMT,
- - - 7.100% due 11/01/2009.......................... 3,266,625 - 3,266,625
2,250,000 - 2,250,000 California Residential Efficiency Financing
- - - Authority (First Resource Efficiency),
- - - (AMBAC Insured), 6.000% due 07/01/2017......... 2,424,375 - 2,424,375
1,355,000 - 1,355,000 California Rural Home Mortgage Finance Authority,
- - - SFM Mortgage-Backed Securities Project, Series
A-2, AMT, (GNMA Insured),
- - - 7.950% due 12/01/2024.......................... 1,549,781 - 1,549,781
- - - California State Department of Water - -
- - - Resources,
- 300,000 300,000 5.00%, 12/01/22 - 292,875 292,875
- 500,000 500,000 6.00%, 12/01/06 - 556,875 556,875
- 500,000 500,000 6.00%, 12/01/09 - 566,875 566,875
415,000 - 415,000 California State, GO, (MBIA Insured),
- - - 6.000% due 10/01/2014.......................... 448,200 - 448,200
- - - California Statewide Communities Development
Authority COP:
3,000,000 - 3,000,000 (Cedars-Sinai Medical Center), (MBIA Insured),
- - - 6.500% due 08/01/2012.......................... 3,483,750 - 3,483,750
735,000 - 735,000 (Childrens Campus),
- - - 6.500% due 09/01/2022.......................... 790,125 - 790,125
14,800,000 - 14,800,000 California Statewide Communities Development
Authority Revenue,
- - - (Sherman Oaks Project), Series A, (AMBAC
Insured),
- - - 5.000% due 08/01/2022.......................... 14,467,000 - 14,467,000
5,715,000 - 5,715,000 Carson, Improvement Board Act of 1915, GO,
- - - 7.375% due 09/02/2022.......................... 6,150,769 - 6,150,769
4,675,000 - 4,675,000 Chula Vista, IDR, (San Diego Gas and Electric),
Series A, AMT,
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WM CALIFORNIA MUNICIPAL FUND AND
GRIFFIN CALIFORNIA TAX-FREE FUND
PRINCIPAL AMOUNT PRO FORMA COMBINED PORTFOLIO OF INVESTMENTS VALUE
- -------------------------------------------- --------------------------------------
WM GRIFFIN JUNE 30, 1998 (Unaudited) WM GRIFFIN
CALIFORNIA CALIFORNIA PRO FORMA CALIFORNIA CALIFORNIA PRO FORMA
MUNICIPAL FUND TAX-FREE FUND COMBINED MUNICIPAL FUND TAX-FREE FUND COMBINED
<S> <C> <C> <C> <C> <C> <C>
- - - (AMBAC Insured),
- - - 6.400% due 12/01/2027.......................... 5,113,281 - 5,113,281
2,950,000 - 2,950,000 Chula Vista, Redevelopment Agency, Tax Allocation
Revenue,
- - - 8.625% due 09/01/2024.......................... 3,606,375 - 3,606,375
- - - Contra Costa County, Finance Authority, Tax
Allocation Revenue,
- - - Series A:
$1,595,000 - $1,595,000 7.000% due 08/01/2009.......................... $1,746,525 - $1,746,525
1,000,000 - 1,000,000 7.100% due 08/01/2022.......................... 1,092,500 - 1,092,500
- $ 500,000 500,000 Contra Costa, California Transportation
- - - Authority Sales Tax Revenue,
- - - 6.00%, 03/01/07 - $ 556,250 556,250
2,500,000 - 2,500,000 Davis, Public Facilities Finance Authority,
- - - Mace Ranch Area, Series A,
- - - 6.600% due 09/01/2025......................... 2,609,375 - 2,609,375
3,215,000 - 3,215,000 Delano, COP, Series A,
- - - 9.250% due 01/01/2022......................... 3,721,363 - 3,721,363
8,985,000 - 8,985,000 East Bay Regional Parks District, GO, Series D,
- - - 5.000% due 09/01/2023.......................... 8,906,381 - 8,906,381
1,985,000 - 1,985,000 El Cajon, COP, (Helix View Nursing Hospital),
- - - Limited Obligation, Series 1990, AMT, (FHA
Insured),
- - - 7.750% due 02/01/2029......................... 2,020,333 - 2,020,333
4,785,000 - 4,785,000 Fairfield Housing Authority Revenue, Mortgage
Revenue,
- - - (Creekside Estates Project),
- - - 7.875% due 02/01/2015......................... 5,000,325 - 5,000,325
- 300,000 300,000 Folsom, California School Facilities Project
- - - - Series B, 6.00%, 08/01/10 - 329,625 329,625
5,000,000 - 5,000,000 Foothill Eastern Transportation Corridor Agency,
Series A,
- - - Zero coupon due 01/01/2008.................... 3,775,000 - 3,775,000
2,000,000 - 2,000,000 Gilroy, Unified School District, COP,
- - - (Measure J Capital Projects), (FSA Insured),
- - - 6.250% due 09/01/2012......................... 2,225,000 - 2,225,000
- 1,060,000 1,060,000 Home Mortgage, Series F-1, 6.50%, 02/01/08..... - 1,168,650 1,168,650
2,000,000 - 2,000,000 Huntington Park, Public Financing Authority Lease
Revenue,
- - - (Waste Water System Project),
- - - 6.200% due 10/01/2025......................... 2,027,500 - 2,027,500
5,000,000 - 5,000,000 Imperial Irrigation District, Electric Revenue,
(MBIA Insured)
- - - 5.000% due 11/01/2018........................ 4,931,250 - 4,931,250
2,000,000 - 2,000,000 Irvine, Meadows Mobile Home Park Revenue, Series A,
(GNMA Collateral)
- - - 5.700% due 03/01/2018......................... 2,000,000 - 2,000,000
1,250,000 - 1,250,000 Kings County, Waste Management Authority, Solid
Waste Revenue, AMT,
- - - 7.200% due 10/01/2014........................ 1,396,875 - 1,396,875
1,500,000 - 1,500,000 La Verne, Public Financing Authority, Capital
Improvement,
- - - 7.250% due 09/01/2026........................ 1,642,500 - 1,642,500
- 250,000 250,000 Los Angeles, California Harbor Department
- - - Revenue, 5.38%, 11/01/23..................... - 251,250 251,250
- 1,000,000 1,000,000 Long Beach, California Harbor Revenue,
- - - 5.25%, 05/15/25 - 997,500 997,500
- 1,000,000 1,000,000 Los Angeles, California Unified School
- - - District, 6.00%, 07/01/11.................... - 1,132,500 1,132,500
- 1,445,000 1,445,000 Los Angeles, California Unified School
- - - District, 6.00%, 07/01/13.................... - 1,631,044 1,631,044
- - - Los Angeles, Community Redevelopment Agency, AMT:
1,425,000 - 1,425,000 5.850% due 12/01/2026......................... 1,425,000 - 1,425,000
2,055,000 - 2,055,000 (Hollywood Redevelopment Project), Series C,
(MBIA Insured),
- - - 5.000% due 07/01/2022......................... 2,008,762 - 2,008,762
3,490,000 - 3,490,000 Series C, (AMBAC Insured),
- - - 6.750% due 07/01/2014......................... 3,804,100 - 3,804,100
- 1,000,000 1,000,000 Los Angeles, California Department of
- - - Airports, 5.50%, 05/15/08.................... - 1,067,500 1,067,500
- 600,000 600,000 Los Angeles, California Department of Water &
- - - Power, Water Works Revenue,
- - - 6.20%, 07/01/12 - 666,750 666,750
1,000,000 - 1,000,000 Los Angeles County, Master Refunding Project,
(Inverse Floater),
- - - 9.330% due 06/01/2015(A)..................... 1,192,500 - 1,192,500
- - - Los Angeles County, MFHR, AMT, (GNMA Insured):
3,000,000 - 3,000,000 (Park Parthenia Project),
- - - 7.400% due 01/20/2022........................ 3,076,560 - 3,076,560
1,000,000 - 1,000,000 (Ridgecroft Apartments Project), Series E, (GNMA
Collateral),
- - - 6.250% due 09/20/2039........................ 1,058,750 - 1,058,750
- - - Los Angeles County, Residual Interest Bond:
3,740,000 - 3,740,000 (Edmund D. Edelman Children's Center), COP, (AMBAC
Insured),
- - - 6.000% due 04/01/2012........................ 3,997,125 - 3,997,125
6,110,000 - 6,110,000 (Pension Obligation), COP, (MBIA Insured),
- - - 6.900% due 06/30/2008........................ 7,309,087 - 7,309,087
1,360,000 - 1,360,000 Los Angeles County, Single Family Housing Revenue,
Series B, (GNMA Insured),
- - - 7.600% due 08/01/2016........................ 1,513,000 - 1,513,000
- 1,000,000 1,000,000 Los Angeles County Transportation,
- - - 7.00%, 07/01/19 ............................ - 1,052,450 1,052,450
395,000 - 395,000 Los Angeles Home Mortgage Revenue, Mortgage-Backed
Securities Project,
- - - (GNMA Insured),
- - - 8.100% due 05/01/2017.............................. 445,856 - 445,856
- 1,000,000 1,000,000 Los Angeles Pub Sp Cos
- - - 5.00%, 10/01/16 ........................ - 987,500 987,500
415,000 - 415,000 Los Angeles, SFMR, Program 1990, Issue A, AMT,
GNMA collateralized,
- - - 7.550% due 12/01/2023.............................. 432,638 - 432,638
- - - Metropolitan Water District of Southern California:
- 200,000 200,000 5.00%, 07/01/10 - 206,250 206,250
- 750,000 750,000 5.75%, 07/01/09 - 830,625 830,625
- 100,000 100,000 6.00%, 07/01/07 - 112,000 112,000
- 1,000,000 1,000,000 Monterey County, California Certificate of
- - - Participation, Natividad Medical Center
- - - Improvements, Series E, 4.75%, 08/01/17............ - 952,500 952,500
- 500,000 500,000 Multi-Unit Rental Housing, 6.88%, 08/01/24.......... - 531,875 531,875
2,785,000 - 2,785,000 Needles, Public Utilities Authority Revenue,
- - - (Utilities System Aquisition Project), Series A,
- - - 6.500% due 02/01/2022.............................. 2,913,806 - 2,913,806
3,500,000 - 3,500,000 Novato, Special Tax Revenue, (Community Facilities
District),
- - - 7.200% due 08/01/2015.............................. 3,775,625 - 3,775,625
2,000,000 - 2,000,000 Oakland, Revenue Bonds, (YMCA East Bay Project),
- - - 7.100% due 06/01/2010............................... 2,202,500 - 2,202,500
- - - Oakland, Unified School District:
2,645,000 - 2,645,000 7.000% due 11/15/2011.............................. 2,892,969 - 2,892,969
3,445,000 - 3,445,000 COP, Energy Retrofit,
- - - 6.750% due 11/15/2014.............................. 3,711,988 - 3,711,988
4,500,000 - 4,500,000 Palm Desert, Financing Authority, Tax Allocation
Revenue,
- - - (MBIA Insured), (Inverse Floater),
- - - 8.705% due 04/01/2022 (A)......................... 5,315,625 - 5,315,625
1,150,000 - 1,150,000 Palm Springs, Financing Authority, (Convention Center
Project),
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WM CALIFORNIA MUNICIPAL FUND AND
GRIFFIN CALIFORNIA TAX-FREE FUND
PRINCIPAL AMOUNT PRO FORMA COMBINED PORTFOLIO OF INVESTMENTS VALUE
- -------------------------------------------- JUNE 30, 1998 (Unaudited) ----------------------------------------
WM GRIFFIN WM WM
CALIFORNIA CALIFORNIA PRO FORMA CALIFORNIA CALIFORNIA PRO FORMA
MUNICIPAL FUND TAX-FREE FUND COMBINED MUNICIPAL FUND TAX-FREE FUND COMBINED
<S> <C> <C> <C> <C> <C> <C>
- - - Series A, (MBIA Insured),
- - - 6.750% due 11/01/2021.......................... 1,256,375 - 1,256,375
- - - Port Oakland, AMT,
- - - (Mitsu Osk Lines Ltd.), Series A:
3,030,000 - 3,030,000 6.750% due 01/01/2012.......................... 3,242,100 - 3,242,100
2,300,000 - 2,300,000 6.800% due 01/01/2019.......................... 2,452,375 - 2,452,375
3,000,000 - 3,000,000 Rancho, Water District Financing Authority,
Residual Interest Bond,
- - - (AMBAC Insured), (Pre-refunded to 09/11/2001),
- - - 9.024% due 08/17/2021 (A)...................... 3,521,250 - 3,521,250
2,750,000 - 2,750,000 Redding, Electrical Systems Revenue, COP,
(Inverse Floater), (MBIA Insured),
- - - 8.670% due 07/08/2022 (A)...................... 3,746,875 - 3,746,875
1,000,000 - 1,000,000 Redondo Beach, Public Financing Authority
- - - Revenue, (South Bay Center Redevelopment
- - - Project), 7.125% due 07/01/2026................$ 1,116,250 - $ 1,116,250
- $ 500,000 $ 500,000 Riverside County, California Transportation
- - - Community Sales Tax Revenue, Series A,
- - - 5.75%, 06/01/08................................ - $ 551,250 551,250
$ 1,500,000 - 1,500,000 Riverside, School District, Special Project,
- - - 7.250% due 09/01/2018.......................... 1,620,000 - 1,620,000
- 1,000,000 1,000,000 Sacramento CA Mun Util D,
- - - 5.13%, 07/01/22 ............................... - 987,500 987,500
6,500,000 - 6,500,000 Sacramento County, Airport System Revenue,
- - - Series 1989, AMT, (AMBAC Insured),
- - - 7.000% due 07/01/2020.......................... 6,804,525 - 6,804,525
- 750,000 750,000 Sacramento, California Certificate of
- - - Participation, Public Facilities Project,
- - - 6.00%, 07/01/12................................ - 793,125 793,125
1,000,000 - 1,000,000 Salinas, California Improvement Board,
- - - Act 1915, Special Assesment District #90-1,
- - - Series C-185, 5.400% due 09/02/2012............ 990,000 - 990,000
- 1,500,000 1,500,000 San Bernardino County CA,
- - - 4.50%, 09/30/99 ............................... - 1,510,905 1,510,905
10,000,000 - 10,000,000 San Bernardino County, COP, (MBIA Insured),
- - - Residual Interest Bond,
- - - 7.450% due 07/01/2016 (A)...................... 10,675,000 - 10,675,000
- 765,000 765,000 San Diego County, California Regional
- - - Transportation Commission Sales Tax
- - - Revenue, Series A, 4.75%, 04/01/08............. - 782,213 782,213
4,000,000 - 4,000,000 San Diego County, Residual Interest Bond, COP,
- - - Series B, (MBIA Insured), (Pre-refunded to
- - - 04/27/2006), 8.520% due 04/08/2021 (A)......... 5,200,000 - 5,200,000
1,000,000 - 1,000,000 San Dimas, Housing Authority Revenue,
- - - (Charter Oak Mobile Home Project),
Series A, (FNMA Collateral)
- - - 5.700% due 07/01/2028.......................... 970,000 - 970,000
- - - San Francisco, California Bay Area Rapid
- - - Transit District Sales Tax Revenue:
- 1,000,000 1,000,000 5.00%, 07/01/28................................ - 975,000 975,000
- 500,000 500,000 5.35%, 07/01/07................................ - 531,250 531,250
- 705,000 705,000 San Francisco, California City & County
- - - Airports, Second Series Issue 12-B,
- - - 5.50%, 05/01/09................................ - 755,231 755,231
- 1,000,000 1,000,000 San Francisco, California City & County
- - - Airport Commission, International Airport
- - - Revenue Bonds, Series 15A,
- - - 5.00%, 05/01/21................................ - 968,750 968,750
- - - San Francisco, City and County, Multi-family
- - - Mortgage Revenue, Series A, (FNMA Insured):
1,000,000 - 1,000,000 6.350% due 02/15/2012.......................... 1,046,250 - 1,046,250
1,250,000 - 1,250,000 6.450% due 02/15/2024.......................... 1,301,563 - 1,301,563
- - - San Francisco, City and County, Redevelopment
Agency, Lease Revenue, Capital
- - - Appreciation, (George R. Moscone Project):
3,750,000 - 3,750,000 Zero coupon due 07/01/2011.................... 1,964,062 - 1,964,062
4,250,000 - 4,250,000 Zero coupon due 07/01/2013.................... 1,960,313 - 1,960,313
- 600,000 600,000 San Francisco, California City & County Sewer
- - - Revenue, 5.90%, 10/01/08....................... - 645,750 645,750
270,000 - 270,000 San Francisco, City and County, SFMR, AMT,
- - - GNMA and FNMA Mortgage-Backed Securities
- - - Program, 7.450% due 01/01/2024................. 282,487 - 282,487
- 1,000,000 1,000,000 San Joaquin Hills, California Transportation
- - - Corridor Agency Toll Road Revenue,
- - - 4.90%, 01/15/07................................ - 680,000 680,000
- - - San Jose, California Redevelopment Agency
Tax Allocation:
- 250,000 250,000 5.38%, 08/01/11................................ - 264,063 264,063
- 1,000,000 1,000,000 6.00%, 08/01/10................................ - 1,133,750 1,133,750
2,370,000 - 2,370,000 San Jose, Financing Authority Revenue,
- - - Series C, 7.000% due 09/02/2015................ 2,424,036 - 2,424,036
- 500,000 500,000 Santa Barbara County, California Certificate
- - - of Participation, 6.40%, pre-refunded
- - - to 02/01/01.................................... - 538,125 538,125
3,000,000 - 3,000,000 Santa Clarita, Community Development
- - - Authority, 7.500% due 11/15/2012............... 3,195,000 - 3,195,000
4,765,000 - 4,765,000 Santa Rosa, Mortgage Revenue, (Channate Lodge),
- - - (FHA Insured), 6.700% due 12/01/2024........... 5,128,331 - 5,128,331
3,050,000 - 3,050,000 Shasta, Joint Powers Financing Authority,
Lease Revenue, (County Courthouse Improvement
- - - Project), Series A, (MBIA Insured),
- - - 5.000% due 06/01/2023.......................... 2,981,375 - 2,981,375
2,000,000 - 2,000,000 Shasta Lake, COP, (FSA Insured),
- - - 6.000% due 04/01/2016.......................... 2,167,500 - 2,167,500
5,000,000 - 5,000,000 Sierra View, Healthcare District Revenue,
- - - (ACA Insured), 5.250% due 07/01/2018........... 4,900,000 - 4,900,000
- 500,000 500,000 South Orange County, California Public
- - - Financing Authority Special Tax Revenue,
- - - 7.00%, 09/01/08 ............................... - 602,500 602,500
5,000,000 - 5,000,000 South Orange County, Public Financing Authority,
- - - Special Tax Revenue, Sr. Lien, Series A,
- - - (MBIA Insured), 6.200% due 09/01/2013.......... 5,468,750 - 5,468,750
- - - Southern California, Housing Finance Agency,
- - - SFMR, GNMA and FNMA Mortgage-Backed Securities
- - - Program:
1,035,000 - 1,035,000 Series 1988A, AMT, GNMA collateralized,
- - - 8.125% due 02/01/2021.......................... 1,183,781 - 1,183,781
1,545,000 - 1,545,000 Series A, (GNMA Collateral),
- - - 7.350% due 09/01/2024.......................... 1,622,250 - 1,622,250
195,000 - 195,000 Series B, (GNMA Collateral),
- - - 6.900% due 10/01/2024.......................... 206,944 - 206,944
- - - State of California:
- 2,000,000 2,000,000 5.50%, 04/01/13................... - 2,147,500 2,147,500
- 1,000,000 1,000,000 6.60%, 02/01/10................... - 1,181,250 1,181,250
- 1,000,000 1,000,000 6.75%, 02/01/08................... - 1,181,250 1,181,250
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WM CALIFORNIA MUNICIPAL FUND AND
GRIFFIN CALIFORNIA TAX-FREE FUND
PRINCIPAL AMOUNT PRO FORMA COMBINED PORTFOLIO OF INVESTMENTS VALUE
- -------------------------------------------- ----------------------------------
WM GRIFFIN JUNE 30, 1998 (Unaudited) WM GRIFFIN
CALIFORNIA CALIFORNIA PRO FORMA CALIFORNIA CALIFORNIA
MUNICIPAL FUND TAX-FREE FUND COMBINED MUNICIPAL FUND TAX-FREE FUND
<S> <C> <C> <C> <C> <C>
- 1,500,000 1,500,000 5.00%, 10/01/18 ...... - 1,477,500
55,000 - 55,000 Stockton, Community Facilities Supplemental
Tax #90-2, SFMR,
- - - GNMA Mortgage-Backed Securities Program,
- - - (Brookside Estates), AMT,
- - - 7.450% due 08/01/2010 ...... 61,325 -
1,305,000 - 1,305,000 Stockton, Community Facilities Supplemental
Tax #90-1,
- - - (Mello Roos-Weston Ranch), Series A,
- - - 6.000% due 09/01/2018 ...... 1,303,369 -
- 1,250,000 1,250,000 Turlock, California Irrigation District
- - - Revenue Bond, Series A, 5.00%, 01/01/17 ...... - 1,235,938
- 400,000 400,000 University of California Certificate of
- - - Participation, UCLA Center Chiller/
- - - Cogeneration Project, 6.00%, 11/01/21 ...... - 431,500
- - - University of California, Refunding Revenue:
10,000,000 - 10,000,000 Multi-Purpose Projects, Series F, (FGIC
- - - Insured), 5.000% due 09/01/2022 ...... 9,775,000 -
5,760,000 - 5,760,000 Research Facilities, Series C, (FSA Insured),
- - - 5.000% due 09/01/2024 ...... 5,630,400 -
$ 7,885,000 - 7,885,000 Research Facilities, Series D, (FSA Insured),
- - - 5.000% due 09/01/2024 ...... $ 7,707,587 -
2,025,000 - 2,025,000 Vallejo, Public Financing Authority Revenue,
- - - (Fairgrounds Drive Assesment District),
- - - 5.700% due 09/02/2011 ...... 2,004,750 -
- - - West & Central Basin Financing Authority Revenue:
- $ 1,035,000 $ 1,035,000 5.00%, 08/01/09 ...... - $ 1,078,988
- 1,500,000 $ 1,500,000 5.13%, 08/01/22 ...... 1,490,625
----------------------------------
329,415,640 39,774,107
PUERTO RICO - 0.9%
1,647,018 - 1,647,018 Centro de Recaudaciones de Ingresos Municipales,
6.850% due 10/17/2003 ...... 1,737,603 -
- 750,000 750,000 Puerto Rico Electric Power Authority
Revenue, Series U, 6.00%, 07/01/14 ...... - 811,873
- 800,000 800,000 Puerto Rico Commonwealth, 5.65%, 07/01/15 ...... - 871,000
----------------------------------
1,737,603 1,682,873
Total Long-Term Municipal Bonds and Notes 331,153,243 41,456,980
SHORT-TERM MUNICIPAL BONDS AND NOTES - 1.5%
California Pollution Control, Shell Proj A,
- 100,000 100,000 5.00%, 10/01/08 ..... - 100,000
- 100,000 100,000 5.00%, 10/01/10 ... - 100,000
- 100,000 100,000 5.00%, 10/01/06 ... - 100,000
- 300,000 300,000 California Pollution Control Financing, Shell,
5.00%, 10/01/11 ... - 300,000
- 300,000 300,000 CA PCR Shell Oil Project,
5.00%, 11/01/00 ... - 300,000
CA Pollution Control Financing,
- 600,000 600,000 5.00%, 12/01/12 ... - 600,000
- 500,000 500,000 5.00%, 12/01/16 ... - 500,000
- 500,000 500,000 California Statewide Communities Development
Authority, Certificate of Participation,
5.00%, 04/01/28 ... - 500,000
- 1,100,000 1,100,000 CA Statewide Community Development,
5.00%, 12/01/15 ... - 1,100,000
- 200,000 200,000 CA Statewide Community Development Corp,
5.00%, 03/01/03 ... - 200,000
700,000 - 700,000 Irvine Ranch, Water District Revenue,
3.300% due 04/01/2033 (A)...... 700,000 -
- 100,000 100,000 Ontario, California, Winsford Partners
Revenue, 5.00%, 09/01/08 ...... - 100,000
- 200,000 200,000 CA San Jose Mtg,
5.00%, 11/01/17 ...... - 200,000
- 200,000 200,000 CA Foothill East Corr,
3.75%, 01/02/35 ..... - 200,000
- 300,000 300,000 Los Angeles Multirev,
5.00%, 11/01/09 ...... - 300,000
5,000 - 5,000 Los Angeles, Regional Airports Improvement,
Corporate Lease Revenue, (Los Angeles
International Airport),
4.000% due 12/01/2025 (A) ...... 5,000 -
- 200,000 200,000 Simi Vy Calif Mf Hsg Rev, - -
5.00%, 07/01/23 ...... - 200,000
----------------------------------
Total Short-Term Municipal Bonds and Notes 705,000 4,800,000
TOTAL INVESTMENTS - 102.1% (COST $351,978,586) $ 331,858,243 $ 46,256,980
OTHER ASSETS AND LIABILITIES, NET - (2.1%) (6,984,289) (661,622)
----------------------------------
TOTAL NET ASSETS - 100.0% $ 324,873,954 $ 45,595,358
==================================
<CAPTION>
WM CALIFORNIA MUNICIPAL FUND AND
GRIFFIN CALIFORNIA TAX-FREE FUND
PRINCIPAL AMOUNT PRO FORMA COMBINED PORTFOLIO OF INVESTMENTS
-------------------------------------------- ----------------
WM GRIFFIN JUNE 30, 1998 (Unaudited)
CALIFORNIA CALIFORNIA PRO FORMA PRO FORMA
MUNICIPAL FUND TAX-FREE FUND COMBINED COMBINED
<S> <C> <C> <C> <C>
- 1,500,000 1,500,000 5.00%, 10/01/18 ....................................... 1,477,500
55,000 - 55,000 Stockton, Community Facilities Supplemental
Tax #90-2, SFMR,
- - - GNMA Mortgage-Backed Securities Program,
- - - (Brookside Estates), AMT,
- - - 7.450% due 08/01/2010 ................................. 61,325
1,305,000 - 1,305,000 Stockton, Community Facilities Supplemental
Tax #90-1,
- - - (Mello Roos-Weston Ranch), Series A,
- - - 6.000% due 09/01/2018 ................................. 1,303,369
- 1,250,000 1,250,000 Turlock, California Irrigation District
- - - Revenue Bond, Series A, 5.00%, 01/01/17 ............... 1,235,938
- 400,000 400,000 University of California Certificate of
- - - Participation, UCLA Center Chiller/
- - - Cogeneration Project, 6.00%, 11/01/21 ................. 431,500
- - - University of California, Refunding Revenue:
10,000,000 - 10,000,000 Multi-Purpose Projects, Series F, (FGIC Insured)
- - - 5.000% due 09/01/2022 ................................. 9,775,000
5,760,000 - 5,760,000 Research Facilities, Series C, (FSA Insured),
- - - 5.000% due 09/01/2024 ................................. 5,630,400
$ 7,885,000 - 7,885,000 Research Facilities, Series D, (FSA Insured),
- - - 5.000% due 09/01/2024 ................................. $ 7,707,587
2,025,000 - 2,025,000 Vallejo, Public Financing Authority Revenue,
- - - (Fairgrounds Drive Assesment District),
- - - 5.700% due 09/02/2011 ................................. 2,004,750
- - - West & Central Basin Financing Authority Revenue:
- $ 1,035,000 $ 1,035,000 5.00%, 08/01/09 ....................................... 1,078,988
- 1,500,000 $ 1,500,000 5.13%, 08/01/22 ....................................... 1,490,625
-------------
369,189,747 99.7%
PUERTO RICO - 0.9%
1,647,018 - 1,647,018 Centro de Recaudaciones de Ingresos Municipales,
6.850% due 10/17/2003 ................................. 1,737,603
- 750,000 750,000 Puerto Rico Electric Power Authority
Revenue, Series U, 6.00%, 07/01/14 .................... 811,873
- 800,000 800,000 Puerto Rico Commonwealth, 5.65%, 07/01/15 .............. 871,000
-------------
3,420,476 0.9%
Total Long-Term Municipal Bonds and Notes 372,610,223 100.6%
SHORT-TERM MUNICIPAL BONDS AND NOTES - 1.5%
California Pollution Control, Shell Proj A,
- 100,000 100,000 5.00%, 10/01/08 ....................................... 100,000
- 100,000 100,000 5.00%, 10/01/10 ....................................... 100,000
- 100,000 100,000 5.00%, 10/01/06 ....................................... 100,000
- 300,000 300,000 California Pollution Control Financing, Shell,
5.00%, 10/01/11 ....................................... 300,000
- 300,000 300,000 CA PCR Shell Oil Project,
5.00%, 11/01/00 ....................................... 300,000
CA Pollution Control Financing,
- 600,000 600,000 5.00%, 12/01/12 ....................................... 600,000
- 500,000 500,000 5.00%, 12/01/16 ... 500,000
- 500,000 500,000 California Statewide Communities Development
Authority, Certificate of Participation,
5.00%, 04/01/28 ....................................... 500,000
- 1,100,000 1,100,000 CA Statewide Community Development,
5.00%, 12/01/15 ....................................... 1,100,000
- 200,000 200,000 CA Statewide Community Development Corp,
5.00%, 03/01/03 ....................................... 200,000
700,000 - 700,000 Irvine Ranch, Water District Revenue,
3.300% due 04/01/2033 (A)...... 700,000
- 100,000 100,000 Ontario, California, Winsford Partners
Revenue, 5.00%, 09/01/08 ...... 100,000
- 200,000 200,000 CA San Jose Mtg,
5.00%, 11/01/17 ....................................... 200,000
- 200,000 200,000 CA Foothill East Corr,
3.75%, 01/02/35 ....................................... 200,000
- 300,000 300,000 Los Angeles Multirev,
5.00%, 11/01/09 ....................................... 300,000
5,000 - 5,000 Los Angeles, Regional Airports Improvement,
Corporate Lease Revenue, (Los Angeles
International Airport),
4.000% due 12/01/2025 (A) ...... 5,000
- 200,000 200,000 Simi Vy Calif Mf Hsg Rev, -
5.00%, 07/01/23 ....................................... 200,000
-------------
Total Short-Term Municipal Bonds and Notes 5,505,000 1.5%
TOTAL INVESTMENTS - 102.1% (COST $351,978,586) $378,115,223 102.1%
OTHER ASSETS AND LIABILITIES, NET - (2.1%) (7,645,911) -2.1%
-------------
TOTAL NET ASSETS - 100.0%
$370,469,312 100.0%
=============
</TABLE>
- --------------------------------------------------------------------------------
(A) Floating rate security. The interest rate shown reflects the rate currently
in effect.
<PAGE>
WM CALIFORNIA MUNICIPAL FUND & GRIFFIN CALIFORNIA TAX-FREE FUND
Notes to Pro Forma Combined Financial Statements (Unaudited)
1. Basis of Combination
The pro forma combined financial statements reflect the pro forma
combined financial position of the WM California Municipal Fund and the
Griffin California Tax-Free Fund at June 30, 1998 and the pro forma combined
results of operations for the year ended June 30, 1998 as though the
reorganization had occurred on July 1, 1997.
The pro forma combined financial statements are presented for the information
of the reader and may not necessarily be representative of how the pro forma
combined financial statements would have appeared had the reorganization
actually occurred.
The Pro Forma Combined Portfolio of Investments, Statement of Assets and
Liabilities, and the Statement of Operations should be read in conjunction
with the historical financial statements of the funds which are incorporated
by reference in the Statement of Additional Information.
The pro forma combined statements give effect to the proposed transfer of the
assets and stated liabilities of the Griffin California Tax-Free Fund in
exchange for shares of WM California Municipal Fund. Under generally
accepted accounting principles, the historical cost of investment securities
will be carried forward to the surviving entity.
The pro forma combined statements do not reflect the expenses of either fund
in carrying out its obligations under the proposed Agreement and Plan of
Reorganization.
2. Pro Forma Combined Portfolio of Investments
Securities held by the two funds have been combined in the accompanying
Combined Portfolio of Investments. Securities are valued using the pricing
procedures and policies of the respective Acquiring Fund or Acquired Fund, as
applicable. For more information, see the WM Annual Reports or the Griffin
Annual Reports. Historical cost amounts represent the combined cost basis of
the securities.
3. Pro Forma Combined Statements of Assets and Liabilities
Shares outstanding have been adjusted to reflect the conversion of Griffin
California Tax-Free Fund shares into WM California Municipal Fund shares
based upon the net asset value of the WM California Municipal Fund shares at
June 30, 1998.
<PAGE>
WM INCOME FUND AND GRIFFIN BOND FUND
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM PRO FORMA PRO FORMA
BOND FUND INCOME FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
ASSETS:
Investments at value $ 87,316,676 $259,977,644 $347,294,320
-
---------------------------------------------------------------
Total Investments 87,316,676 259,977,644 - 347,294,320
Cash/Cash Equivalents 249,040 130,468 379,508
Receivable for dollar roll fee income - -
Dividends and/or interest receivable 1,273,317 4,338,150 5,611,467
Receivable for Fund shares Sold 3,903 483,097 487,000
Receivable for investment securities sold 419,319 - 419,319
Unamortized organization costs - -
Receivable from investment advisor - -
Prepaid expenses and other assets 5,895 158,036 163,931
---------------------------------------------------------------
Total Assets 89,268,150 265,087,395 - 354,355,545
LIABILITIES:
Payable for dollar roll transactions - -
Variation margin payable - -
Reverse repurchase agreements - -
Payable for Fund shares redeemed - 1,290,359 1,290,359
Payable for investment securities purchased 4,770,480 278,663 5,049,143
Investment advisory fee payable 187,543 187,543
Administration fee payable - -
Shareholder servicing and distribution fees payable 108,328 108,328
Dividends payable 370,264 551,524 921,788
Accrued legal and audit fees 4,133 4,133
Accrued Trustees' fees and expenses 2,101 2,101
Accrued registration and filing fees payable 5,502 5,502
Due to Custodian - -
Net Unrealized Depreciation of Fwd For Curr Cts - -
Accrued Expenses and other payables 99,297 134,618 233,915
---------------------------------------------------------------
Total Liabilities 5,240,041 2,562,771 - 7,802,812
TOTAL NET ASSETS $ 84,028,109 $262,524,624 $ - $346,552,733
===============================================================
NET ASSETS:
Undistributed net investment income/
(accumulated net investment loss/distributions
in excess of net investment income) - - -
Accumulated net realized gain/(loss)
on investments sold, futures contracts,
closed written options, forward foreign currency
contracts and foreign currency transactions $ 449,592 $ (9,939,629) $ (9,490,037)
Net unrealized app./(dep.) of investments,
foreign currency, written options, futures
contracts, forward foreign currency contracts
and other assets and liabilities 796,827 18,088,461 18,885,288
Paid-in capital 82,781,690 254,375,792 337,157,482
---------------------------------------------------------------
TOTAL NET ASSETS $ 84,028,109 $262,524,624 $ - $346,552,733
===============================================================
NET ASSETS:
Class A Shares $ 83,338,025 $223,059,662 $306,397,687
===============================================================
Class B Shares $ 690,084 $ 31,311,087 $ 32,001,171
===============================================================
Class S Shares $ 1,778,697 $ 1,778,697
===============================================================
Class I Shares $ 6,375,178 $ 6,375,178
===============================================================
SHARES OUTSTANDING:
Class A Shares 9,191,290 23,445,893 (431,596) (A) 32,205,587
===============================================================
Class B Shares 76,163 3,287,948 (3,698) (A) 3,360,413
===============================================================
Class S Shares 186,812 - 186,812
===============================================================
Class I Shares 670,315 - 670,315
===============================================================
NET ASSET VALUE PER SHARE:
Class A Shares $ 9.07 $ 9.51 $ 9.51
===============================================================
Class B Shares $ 9.06 $ 9.52 $ 9.52
===============================================================
Class S Shares $ 9.52 $ 9.52
===============================================================
Class I Shares $ 9.51 $ 9.51
===============================================================
</TABLE>
See accompanying notes to pro forma financial statements
- --------------------------------------------------------------------------------
(A) Shares outstanding have been adjusted to reflect the conversion of Griffin
Bond Fund shares into WM Income Fund shares based upon the net asset value
of WM Income Fund shares at April 30, 1998.
<PAGE>
WM Income Fund
and Griffin Bond Fund
Pro Forma Combined Statement of Operations
For the Period Ended 4/30/98
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM PRO FORMA PRO FORMA
BOND FUND INCOME FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income $ 26,728 26,728
- -
Interest Income 1,517,210 3,700,523 5,217,733
Fee Income - -
-------------------------------------------------------------------------
Total Investment Income 1,517,210 3,727,251 - 5,244,461
-------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fees 118,446 308,288 31,025 (A) 457,759
Administration Fees 47,378 - (47,378) (B) -
Custodian Fees 25,711 8,562 34,273
Legal and Audit Fees 11,142 4,133 15,275
Trustees' Fees and Expenses 2,604 2,101 4,705
Amortization of Organization Costs 5,578 - 5,578
Registration and Filing Fees 3,618 5,502 9,120
Other 10,054 21,942 31,996
-------------------------------------------------------------------------
Subtotal 224,531 350,528 (16,353) 558,706
Shareholder Servicing and Distribution Fees
Class A Shares 58,745 135,987 47,974 (C) 242,706
Class B Shares 1,914 62,743 329 (D) 64,986
Class S Shares 2,412 2,412
Interest Expense - -
Fees Waived and/or Expenses Absorbed by Investment -
Advisor (109,865) - 109,865 (E) -
-------------------------------------------------------------------------
Subtotal 175,325 551,670 141,815 868,810
Fees Reduced by Credits Allowed by the Custodian (731) (731)
-------------------------------------------------------------------------
Net Expenses 175,325 550,939 141,815 868,079
-------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 1,341,885 3,176,312 (141,815) 4,376,383
-------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/ -
(LOSS) ON INVESTMENTS -
Realized Gains/(Loss) from: -
Security Transactions 305,222 3,598,084 3,903,306
Forward Foreign Currency Contracts and -
Foreign Currency Transactions - -
Futures Contracts - -
Net Unrealized Appreciation/(Depreciation) of: -
Securities (279,147) 14,279,432 14,000,285
Forward Foreign Currency Contracts - -
Foreign Currency, Written Options, Futures -
Contracts and Other Assets and - -
Liabilities
-------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments 26,075 17,877,516 - 17,903,591
-------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS -
RESULTING FROM OPERATIONS $1,367,960 $21,053,828 $(141,815) $22,279,974
=========================================================================
</TABLE>
(A) Increase in management fees for Griffin shareholders to reflect the new
fee structure. Fees are based on .625% of average daily net assets up to
$250,000,000 and .50% of average daily net assets over that amount.
(B) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(C) Addition of shareholder servicing fee at a monthly rate of $1.45 per
shareholder account.
(D) Addition of shareholder servicing fee at a monthly rate of $1.55 per
shareholder account.
(E) Fees waived and/or expense absorbed by investment advisor has been
eliminated.
<PAGE>
WM Income Fund and Griffin Bond Fund
Pro Forma Combined Statement of Operations
For the Year Ended 12/31/97
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM PRO FORMA PRO FORMA
BOND FUND INCOME FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income - -
- -
Interest Income 3,223,440 $ 6,681,231 9,904,671
Fee Income - -
-----------------------------------------------------------
Total Investment Income 3,223,440 $ 6,681,231 9,904,671
-----------------------------------------------------------
EXPENSES:
Investment Advisory Fees 240,899 553,562 60,213 (A) 854,674
Administration Fees 96,359 - (96,359) (B) -
Custodian Fees 81,076 23,081 104,157
Legal and Audit Fees 19,831 11,192 31,023
Trustees' Fees and Expenses 8,213 8,499 16,712
Amortization of Organization Costs 17,108 - 17,108
Registration and Filing Fees 9,493 22,666 32,159
Other 31,433 55,224 86,657
-----------------------------------------------------------
Subtotal 504,412 674,224 (36,146) 2,142,490
Shareholder Servicing and Distribution Fees
Class A Shares 119,332 254,139 143,924 (C) 517,395
Class B Shares 4,471 86,531 986 (D) 91,988
Class S Shares - -
Interest Expense - -
Fees Waived and/or Expenses Absorbed by Investment -
Advisor (302,697) - 302,697 (E) -
-----------------------------------------------------------
Subtotal 325,518 1,014,894 411,461 1,751,873
Fees Reduced by Credits Allowed by the Custodian (2,840) (2,840)
-----------------------------------------------------------
Net Expenses 325,518 1,012,054 411,461 1,749,033
-----------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 2,897,922 5,669,177 (411,461) 8,155,638
-----------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains/(Loss) from:
Security Transactions 592,366 1,059,244 1,651,610
Forward Foreign Currency Contracts and -
Foreign Currency Transactions - -
Futures Contracts - -
Net Unrealized Appreciation/(Depreciation) of:
Securities 928,173 1,919,907 2,848,080
Forward Foreign Currency Contracts - -
Foreign Currency, Written Options, Futures
Contracts and Other Assets and Liabilities - -
-----------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investment 1,520,539 2,979,151 - 4,499,690
-----------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS -
RESULTING FROM OPERATIONS $ 4,418,461 $ 8,648,328 $(411,461) $ 12,655,328
===========================================================
</TABLE>
(A) Increase in management fees for Griffin shareholders to reflect the new fee
structure. Fees are based on .625% of average daily net assets up to
$250,000,000 and .50% of average daily net assets over that amount.
(B) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(C) Addition of shareholder servicing fee at a monthly rate of $1.45 per
shareholder account.
(D) Addition of shareholder servicing fee at a monthly rate of $1.55 per
shareholder account.
(E) Fees waived and/or expense absorbed by investment advisor has been
eliminated.
<PAGE>
<TABLE>
<CAPTION>
WM INCOME FUND AND GRIFFIN BOND FUND
PRO FORMA COMBINED PORTFOLIO OF INVESTMENTS
PRINCIPAL AMOUNT APRIL 30, 1998 (Unaudited) MARKET VALUE
--------------------------------------- -----------------------------------------
GRIFFIN PRO FORMA GRIFFIN PRO FORMA
WM INCOME FUND BOND FUND COMBINED WM INCOME FUND BOND FUND COMBINED
CORPORATE BONDS AND NOTES - 80.5%
<S> <C> <C> <C> <C> <C> <C>
AUTOS
Ford Motor Credit Corp.
- 825,000 825,000 7.40%, 11/01/46....................... - 874,500 874,500
- 500,000 500,000 8.20%, 01/15/02....................... - 533,750 533,750
- 250,000 250,000 6.85%, 08/15/00....................... - 254,375 254,375
- 820,000 820,000 6.13%, 04/28/03....................... - 815,900 815,900
- - - General Motors Acceptance Corporation - - -
- 455,000 455,000 6.63%, 09/19/02....................... - 460,688 460,688
- 100,000 100,000 9.63%, 05/15/00....................... - 106,625 106,625
- 215,000 215,000 6.88%, 07/15/01....................... - 219,300 219,300
- 2,110,000 2,110,000 7.13%, 05/01/01....................... - 2,165,388 2,165,388
- 690,000 690,000 6.13%, 01/22/08....................... - 673,613 673,613
- 350,000 350,000 9.63%, 12/01/00....................... - 378,875 378,875
-----------------------------------------
- 6,483,014 6,483,014
BANKS
- - - Abbey National First Capital Corporation,
- 175,000 175,000 8.20%, 10/15/04 (A) .......................... - 192,063 192,063
- 200,000 200,000 Abitibi-Consolidated, 7.50%, 04/01/28 - 200,000 200,000
- - - BankAmerica Corporation - - -
- 1,000,000 1,000,000 6.63%, 08/01/07 .............................. - 1,017,500 1,017,500
- 95,000 95,000 6.63%, 10/15/07 .............................. - 96,069 96,069
- 150,000 150,000 7.50%, 10/15/02 .............................. - 157,125 157,125
400,000 - 400,000 Banc One Corporation, Sub. Note, - - -
- - - 10.000% due 08/15/2010..................... 513,336 - 513,336
1,000,000 - 1,000,000 Bank of New York, Sub Note, - - -
- - - 7.875% due 11/15/2002......................... 1,064,942 - 1,064,942
1,000,000 - 1,000,000 Barnett Banks, Florida, Inc , Sub Note, - - -
- - - 10.875% due 03/15/2003........................ 1,188,190 - 1,188,190
- 690,000 690,000 Branch Banking & Trust, 7.25%, 06/15/07....... - 723,638 723,638
- 300,000 300,000 Capital One Bank, 6 83%, 08/16/99............. - 301,500 301,500
- 400,000 400,000 Chase Manhattan Bank, 7.13%, 03/01/05......... - 414,000 414,000
- 1,000,000 1,000,000 Citicorp, 8 00%, 02/01/03..................... - 1,066,250 1,066,250
- 440,000 440,000 Equitable COS, 7.00%, 04/01/28................ - 438,350 438,350
1,100,000 - 1,100,000 First Interstate Bancorp, Sub Note,........... - - -
- - - 9.125% due 02/01/2004...................... 1,244,802 - 1,244,802
1,000,000 - 1,000,000 First Nationwide Bank, Sub. Deb., - - -
- - - 10.000% due 10/01/2006..................... 1,199,370 - 1,199,370
- 270,000 270,000 First National Bank of Boston, 7.38%, 09/15/06 - 286,200 286,200
- 155,000 155,000 First Security Corporation, 6.88%, 11/15/06 - 158,294 158,294
200,000 - 200,000 First State Banc, Conv Sub. Deb., - - -
- - - 7.500% due 04/30/2017...................... 294,500 - 294,500
- 246,000 246,000 First Union Corporation, 9.45%, 08/15/01 - 269,985 269,985
- 335,000 335,000 Fleet Financial Group, 7.13%, 04/15/06 - 347,563 347,563
- 250,000 250,000 Golden West Financial, 7.88%, 01/15/02 - 262,188 262,188
1,000,000 - 1,000,000 Manufacturers and Trade Trust Company, Sub
Note, - - -
- - - 8.125% due 12/01/2002...................... 1,065,839 - 1,065,839
- 495,000 495,000 MBNA Corporation, 6.92%, 05/30/00 - 501,188 501,188
1,000,000 - 1,000,000 Mellon Financial Company, Sub. Deb., - - -
- - - 9.750% due 06/15/2001...................... 1,102,678 - 1,102,678
500,000 - 500,000 Mercantile Bank, Sub. Note, - - -
- - - 7.625% due 10/15/2002...................... 526,370 - 526,370
- - - Morgan J.P. & Company - - -
- 250,000 250,000 7.63%, 09/15/04....................... - 266,250 266,250
- 250,000 250,000 7.63%, 11/15/98....................... - 251,995 251,995
- - - NationsBank Corporation - - -
- 300,000 300,000 5.38%, 04/15/00....................... - 296,250 296,250
- 680,000 680,000 6.38%, 02/15/08....................... - 678,300 678,300
- 465,000 465,000 6.80%, 03/15/28....................... - 463,838 463,838
- 275,000 275,000 7.25%, 10/15/25....................... - 290,469 290,469
1,000,000 - 1,000,000 Norwest Bancorp, Sub Deb., - - -
- - - 6.650% due 10/15/2023...................... 978,293 - 978,293
- 500,000 500,000 PNC Institute Capital Cl.B, 8.32%, 05/15/27... - 540,625 540,625
- 400,000 400,000 Shawmut Bank, 8.63%, 02/15/05................. - 448,500 448,500
500,000 - 500,000 Summit Bancorp, Sub. Notes, - - -
- - - 8.625% due 12/10/2002...................... 545,577 - 545,577
-----------------------------------------
9,723,897 9,668,140 19,392,037
COMMUNICATIONS
- - - 360 Communications Company, 7.60%,
- 100,000 100,000 04/01/09...................................... - 107,375 107,375
- - - Cable & Wireless Communications, 6.38%, - - -
- 180,000 180,000 03/06/03...................................... - 179,775 179,775
- 250,000 250,000 GTE South, 6.00%, 02/15/08.................... - 242,188 242,188
- - - WorldCom Incorporated - - -
- 675,000 675,000 7.55%, 04/01/04............................... - 707,906 707,906
- 390,000 390,000 7.75%, 04/01/07............................... - 420,225 420,225
-----------------------------------------
- 1,657,469 1,657,469
</TABLE>
<PAGE>
WM INCOME FUND AND GRIFFIN BOND FUND
PRO FORMA COMBINED PORTFOLIO OF INVESTMENTS
APRIL 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
WM Griffin Pro Forma WM Griffin Pro Forma
Income Fund Bond Fund Combined Income Fund Bond Fund Combined
<S> <C> <C> <C> <C> <C> <C> <C>
Electric
- - - Avon Energy Partners Holdings, 6.73%,
- 300,000 300,000 12/11/02 ...................... - 303,000 303,000
5,000,000 - 5,000,000 Mississippi Power & Light Company, First and
Refundable Mortgage, - - -
- - - 8.650% due 01/15/2023...........................5,322,835 - 5,322,835
- - - Niagara Mohawk Power, Deb.: - - -
1,000,000 - 1,000,000 9.750% due 11/01/2005...........................1,180,716 - 1,180,716
1,430,000 - 1,430,000 8.770% due 10/01/2018...........................1,520,046 - 1,520,046
2,000,000 - 2,000,000 Philadelphia Electric Company, First and
Refundable Mortgage, - - -
- - - 8.250% due 09/01/2022...........................2,109,502 - 2,109,502
- - - Texas Utilities Electric Company, First Mortgage: - - -
1,200,000 - 1,200,000 9.500% due 08/01/1999...........................1,243,335 - 1,243,335
1,200,000 - 1,200,000 8.875% due 02/01/2022...........................1,318,724 - 1,318,724
3,000,000 - 3,000,000 8.750% due 11/01/2023...........................3,264,849 - 3,264,849
---------------------------------------
15,960,007 303,000 16,263,007
Financial
- 314,000 314,000 Aegon, 8.00%, 08/15/06 (A)................ - 345,793 345,793
- - - American Telephone & Telegraph Capital - - -
- 390,000 390,000 Corporation, 5.65%, 01/15/99.......... - 388,729 388,729
- - - Associates Corporation, N.A............... - - -
- 80,000 80,000 6.63%, 05/15/01................ - 81,200 81,200
- 104,000 104,000 6.75%, 07/15/01................ - 105,950 105,950
9,000,000 - 9,000,000 Barclays North American Capital Corporation,
Capital Note, - - -
- - - 9.750% due 05/15/2021..........................10,202,597 - 10,202,597
- - - Bear Stearns Company - - -
- 225,000 225,000 6.50%, 06/15/00................ - 226,969 226,969
- 250,000 250,000 7.63%, 09/15/99................ - 255,043 255,043
2,000,000 - 2,000,000 Continental Corporation, - - -
- - - 7.250% due 03/01/2003...........................2,047,932 - 2,047,932
500,000 - 500,000 Developers Diversified Realty, MTN, Sr. Note, - - -
- - - 6.580% due 02/06/2001.............................502,686 - 502,686
- 294,000 294,000 Donaldson Lufkin & Jenrette, 6.88%, 11/01/05 - 301,350 301,350
- - - Finova Capital Corporation - - -
- 1,146,000 1,146,000 5.98%, 02/27/01................ - 1,137,405 1,137,405
- 745,000 745,000 6.22%, 03/01/00................ - 745,000 745,000
- - - Franchise Finance Corporation, - - -
900,000 - 900,000 7.000% due 11/30/2000, Sr. Note...................909,999 - 909,999
1,100,000 - 1,100,000 7.875% due 11/30/2005, Sr Note..................1,165,896 - 1,165,896
3,000,000 - 3,000,000 7.070% due 01/15/2008 MTN, Note.................3,000,000 - 3,000,000
1,000,000 - 1,000,000 GATX Leasing Corporation, MTN, - - -
- - - 10.000% due 03/21/2001..........................1,102,656 - 1,102,656
- 435,000 435,000 Household Finance Company, 6.58%, 05/17/99 - 436,827 436,827
- - - Jefferson-Pilot Capital Trust Cl A, 8.14%, - - -
- 500,000 500,000 01/15/46....................... - 523,125 523,125
- - - Jefferson-Pilot Capital Trust Cl B, 8.29%, - - -
- 100,000 100,000 03/01/46....................... - 106,375 106,375
1,250,000 - 1,250,000 Kemper Corporation, Note, - - -
- - - 6.875% due 09/15/2003...........................1,276,929 - 1,276,929
- - - Lehman Brothers Incorporated - - -
- 550,000 550,000 6.13%, 02/01/01................ - 549,313 549,313
- 502,000 502,000 6.65%, 11/08/00................ - 508,275 508,275
- 950,000 950,000 8.50%, 05/01/07................ - 1,075,875 1,075,875
- 165,000 165,000 Lincoln National Corporation, 7.25%, 05/15/05... - 173,044 173,044
3,750,000 - 3,750,000 MBI Metrobank Finance Ltd., Conv. Bond, - - -
- - - Zero coupon due 12/18/2001......................2,400,000 - 2,400,000
- - - Merrill Lynch & Company Incorporated - - -
- 1,000,000 1,000,000 6.00%, 02/12/03................ - 992,500 992,500
- 230,000 230,000 6.25%, 01/15/06................ - 228,563 228,563
- 200,000 200,000 7.38%, 08/17/02................ - 208,250 208,250
- 300,000 300,000 Morgan Stanley Group, 8.88%, 10/15/01.......... - 324,375 324,375
- - - Paine Webber Group - - -
- 375,000 375,000 6.79%, 07/01/03................ - 378,281 378,281
- 415,000 415,000 7.39%, 10/16/17................ - 424,856 424,856
- 40,000 40,000 7.63%, 10/15/08................ - 42,450 42,450
- 165,000 165,000 7.81%, 02/13/17................ - 175,313 175,313
- 255,000 255,000 8.06%, 01/17/17................ - 279,544 279,544
- 200,000 200,000 8.25%, 05/01/02................ - 212,250 212,250
- 500,000 500,000 Safeco Capital Trust, 8.07%, 07/15/37.......... - 523,750 523,750
- - - Salomon Incorporated - - -
- 182,000 182,000 6.50%, 03/01/00................ - 183,365 183,365
- 280,000 280,000 7.00%, 05/15/99................ - 282,822 282,822
- 300,000 300,000 7.59%, 01/28/00................ - 307,500 307,500
- - - Salomon Smith Barney Holdings, 7.13%, - - -
- 345,000 345,000 10/01/06....................... - 359,231 359,231
- 1,075,000 1,075,000 Sears Roebuck Acceptance, 6.00%, 03/20/03......... - 1,061,563 1,061,563
2,500,000 - 2,500,000 Superior Financial Acquisition Corporation, Sr.
Note, - - -
- - - 8.650% due 04/01/2003...........................2,486,915 - 2,486,915
- - - Travelers Property Casualty Corp........... - - -
- 500,000 500,000 6.75%, 04/15/01................ - 508,750 508,750
- 230,000 230,000 6.75%, 11/15/06................ - 234,888 234,888
- 505,000 505,000 US Leasing International, 8.75%, 12/01/01.... - 546,663 546,663
- 575,000 575,000 USF&G Corporation, 8.38%, 06/15/01............ - 605,906 605,906
- 665,000 665,000 Zurich Capital Trust I, 8.38%, 06/01/37.... - 725,681 725,681
---------------------------------
25,095,610 15,566,774 40,662,384
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WM Income Fund and Griffin Bond Fund
Pro Forma Combined Portfolio of Investments
PPRINCIPAL AMOUNT April 30, 1998 (Unaudited) MARKET VALUE
----------------------------------------- --------------------------------------
WM Griffin Pro Forma WM Griffin Pro Forma
Income Fund Bond Fund Combined Income Fund Bond Fund Combined
<S> <C> <C> <C> <C> <C> <C>
Industrial
1,500,000 - 1,500,000 Aetna Services Inc.,
- - - 7.625% due 08/15/26.......................... 1,563,468 - 1,563,468
1,500,000 - 1,500,000 American Home Products Corporation, Deb., - - -
- - - 7.25% due 03/01/23........................... 1,594,342 - 1,594,342
1,000,000 - 1,000,000 AMR Corporation, Deb., - - -
- - - 9.75% due 03/15/2000......................... 1,063,763 - 1,063,763
250,000 - 250,000 Battle Mountain Gold Company, - - -
- - - 6.000% due 01/04/2005........................ 200,000 - 200,000
- 525,000 525,000 B F Goodrich, 7.00%, 04/15/38 - 525,000 525,000
- - - Black & Decker - - -
- 50,000 50,000 7.00%, 02/01/06................................. - 51,438 51,438
- 185,000 185,000 7.50%, 04/01/03................................. - 193,094 193,094
- 700,000 700,000 Brunswick Corporation, 7.13%, 08/01/27.......... - 712,250 712,250
- 500,000 500,000 Burlington Industries, 7.25%, 08/01/27.......... - 510,625 510,625
1,500,000 - 1,500,000 Burlington Northern, Note, - - -
- - - 8.750% due 02/25/2022........................ 1,839,246 - 1,839,246
1,600,000 - 1,600,000 Burlington Resources, Deb., - - -
- - - 9.125% due 10/01/2021........................ 2,043,692 - 2,043,692
1,000,000 - 1,000,000 CII Financial, Conv., - - -
- - - 7.500% due 09/15/01.......................... 961,250 - 961,250
- 165,000 165,000 Coastal Corporation, 8 13%, 09/15/02............ - 175,725 175,725
- 200,000 200,000 Coca Cola Company, 7.88%, 09/15/98.............. - 201,248 201,248
- - - Columbia/HCA Healthcare - - -
- 300,000 300,000 6.91%, 06/15/05................................. - 283,125 283,125
- 250,000 250,000 7.15%, 03/30/04................................. - 239,688 239,688
- 210,000 210,000 Comdisco Incorporated, 6 36%, 01/25/99.......... - 210,263 210,263
- - - Conagra Inc., Sr Note, - - -
750,000 - 750,000 9.750% due 03/01/2021........................ 970,221 - 970,221
500,000 - 500,000 6.700% due 08/01/2027........................ 520,368 - 520,368
- 343,000 343,000 ConAgra Incorporated, 6 70%, 08/01/27........... - 350,718 350,718
- - - CPC International Incorporated, 6.15%, - - -
- 350,000 350,000 01/15/06........................................ - 346,500 346,500
3,030,000 - 3,030,000 Conrail Inc., Deb., - - -
- - - 9.750% due 06/15/2020........................ 3,974,804 - 3,974,804
2,000,000 - 2,000,000 Corporate Express Inc., - - -
- - - 4.500% due 07/01/2000........................ 1,817,500 - 1,817,500
- - - Crane Company, Note: - - -
1,000,000 - 1,000,000 7.250% due 06/15/1999........................ 1,013,379 - 1,013,379
500,000 - 500,000 8.500% due 03/15/2004........................ 553,854 - 553,854
- 300,000 300,000 CSR America Incorporated, 6.88%, 07/21/05....... - 308,625 308,625
2,000,000 - 2,000,000 Dart & Kraft finance NV, - - -
- - - 7.750% due 11/30/1998........................ 2,022,514 - 2,022,514
5,000,000 - 5,000,000 du Pont (E I ) de Nemours & Company, Deb., - - -
- - - 8.250% due 01/15/2022........................ 5,435,429 - 5,435,429
- 560,000 560,000 Embotelladora Andina SA, 7.00%, 10/01/07 (A).... - 547,400 547,400
250,000 - 250,000 Equimar Shipholdings, - - -
- - - 9.875% due 07/01/2007........................ 235,625 - 235,625
- 355,000 355,000 Federated Department Stores, 8.13%, 10/15/02.... - 378,963 378,963
3,000,000 - 3,000,000 FHP International Corporation, Sr Note, - - -
- - - 7.000% due 09/15/2003........................ 3,073,236 - 3,073,236
1,000,000 - 1,000,000 Fleming Companies, Inc , MTN, Note, - - -
- - - 5.770% due 08/06/1998........................ 997,596 - 997,596
2,000,000 - 2,000,000 Ford Holdings, Inc. Deb., - - -
- - - 9.375% due 03/01/2020........................ 2,561,148 - 2,561,148
3,750,000 - 3,750,000 Ford Motor Company, Deb., - - -
- - - 8.875% due 01/15/2022........................ 4,597,395 - 4,597,395
- 615,000 615,000 Fort James Corporation, 6.88%, 09/15/07......... - 624,225 624,225
- 120,000 120,000 Fortune Brands Incorporated, 7.50%, 05/15/99..... - 121,650 121,650
8,000,000 - 8,000,000 General Motors Corporation, Deb., - - -
- - - 9.400% due 07/15/2021........................ 10,472,566 - 10,472,566
850,000 - 850,000 Golden Books Publishing, Sr Note, - - -
- - - 7.650% due 09/15/2002........................ 818,125 - 818,125
- - - Hearst-Argyle Television Incorporated, 7.50%, - - -
- 725,000 725,000 11/15/27........................................ - 734,969 734,969
2,500,000 - 2,500,000 HIH Capital Ltd , Conv., - - -
- - - 7.500% due 09/25/2006........................ 1,975,000 - 1,975,000
- 369,000 369,000 Hilton Hotels Corporation, 7.38%, 06/01/02...... - 374,996 374,996
- 400,000 400,000 Honeywell Incorporated, 6 60%, 04/15/01......... - 406,000 406,000
- 1,000,000 1,000,000 Hyder PLC, 6.75%, 12/15/04 (A).................. - 1,003,750 1,003,750
- 675,000 675,000 Ingersoll-Rand, 6.26%, 02/15/01................. - 677,531 677,531
1,400,000 - 1,400,000 Integrated Device Technology Inc., Conv. Sub.
Note - - -
- - - 5..00% due 06/01/2002........................ 1,225,000 - 1,225,000
- - - International Business Machines Corporation, - - -
- 200,000 200,000 6.38%, 06/15/00................................. - 201,750 201,750
- 160,000 160,000 International Paper Company, 9.70%, 03/15/00.... - 170,400 170,400
- 600,000 600,000 Interpool Incorporated, 7.20%, 08/01/07......... - 600,000 600,000
6,000,000 - 6,000,000 James River Corporation, Deb., - - -
- - - 9.250% due 11/15/2021........................ 7,418,105 - 7,418,105
1,000,000 - 1,000,000 Jackson Products Inc., - - -
- - - 9.500% due 04/15/2005........................ 1,012,500 - 1,012,500
- - - Lockheed Martin Corporation - - -
- 145,000 145,000 7.25%, 05/15/06................................. - 152,613 152,613
- 520,000 520,000 7.75%, 05/01/26................................. - 580,450 580,450
- - - Loral Corporation, Deb., - - -
1,000,000 - 1,000,000 8.375% due 06/15/2024........................ 1,181,220 - 1,181,220
1,000,000 - 1,000,000 7.625% due 06/15/2025........................ 1,087,832 - 1,087,832
1,800,000 - 1,800,000 Medical Care International (Columbia), Conv
Sub Deb., - - -
- - - 6.750% due 10/01/2006........................ 1,644,750 - 1,644,750
- 540,000 540,000 Nabisco Incorporated, 6.00%, 02/15/11........... - 535,275 535,275
- 325,000 325,000 News America Holdings, 7.50%, 03/01/00.......... - 332,719 332,719
- 625,000 625,000 Noble Drilling Corporation, 9.13%, 07/01/06..... - 692,188 692,188
- 120,000 120,000 Norcen Energy Resources, 7.38%, 05/15/06........ - 126,000 126,000
- 65,000 65,000 Occidental Petroleum, 7.09%, 09/08/99........... - 65,731 65,731
8,700,000 - 8,700,000 Occidental Petroleum Corporation, Sr Deb., - - -
- - - 11.125% due 08/01/2010....................... 11,786,836 - 11,786,836
6,500,000 - 6,500,000 Ogden Corporation, Deb., - - -
- - - 9.250% due 03/01/2022........................ 8,181,575 - 8,181,575
2,500,000 - 2,500,000 Panhandle Eastern Pipe Line Company, Deb., - - -
- - - 8.625% due 04/15/2025........................ 2,781,497 - 2,781,497
- 300,000 300,000 Pepsico Incorporated, 7.75%, 10/01/98........... - 301,818 301,818
5,950,000 - 5,950,000 Phillips Petroleum Company, Deb., - - -
- - - 9.180% due 09/15/2021........................ 6,659,536 - 6,659,536
- - - Potash Corporation Saskatchewan, 7.13%, - - -
- 330,000 330,000 06/15/07 (A).................................... - 337,838 337,838
6,860,000 - 6,860,000 Praxair, Inc, Deb., - - -
- - - 8.700% due 07/15/2022........................ 7,468,159 - 7,468,159
- - - Raytheon Co - - -
- 730,000 730,000 5.95%, 03/15/01................................. - 727,263 727,263
- 1,070,000 1,070,000 6.45%, 08/15/02................................. - 1,078,025 1,078,025
750,000 - 750,000 Raytheon Company, First Mortgage, Deb., - - -
- - - 7.200% due 8/15/2027............................ 778,394 - 778,394
500,000 - 500,000 Riviera Holdings Corporation, - - -
- - - 10.000% 8/15/2004............................ 502,500 - 502,500
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WM INCOME FUND AND GRIFFIN BOND FUND
Principal Amount Pro Forma Combined Portfilo Of Investments Market Value
--------------------------------- ------------------------------------------
April 30, 1998 (Unaudited)
WM Griffin Pro Forma WM Griffin Pro Forma
Income Fund Bond Fund Combined Income Fund Bond Fund Combined
<S> <C> <C> <C> <C> <C> <C>
1,400,000 - 1,400,000 Riviera Holdings Corporation, DFSD, First Mortgage, - - -
- - - 11.000% due 12/31/2002............................. 1,470,000 - 1,470,000
- - - Royal Caribbean Cruises - - -
- 426,000 426,000 7.13%, 09/18/02....................................... - 434,520 434,520
- 111,000 111,000 7.25%, 08/15/06....................................... - 115,301 115,301
- 850,000 850,000 7.50%, 10/15/27....................................... - 864,875 864,875
- - - Sears Roebuck & Company - - -
- 100,000 100,000 9.35%, 07/06/98....................................... - 100,505 100,505
1,500,000 - 1,500,000 SoftKey International, Conv., Sr. Note, - - -
- - - 5.500% due 11/01/2000.............................. 1,438,125 - 1,438,125
- 100,000 100,000 Sony Corporation, 6.13%, 03/04/03..................... - 99,875 99,875
4,675,000 - 4,675,000 Spectrum Holobyt, Microprose Inc., Conv. Sub. Note, - - -
- - - 6.500% due 09/15/2002.............................. 3,132,250 - 3,132,250
2,290,000 - 2,290,000 Ssangyong Oil Refining, Conv. Deb., - - -
- - - 3.750% due 12/31/2008.............................. 1,912,150 - 1,912,150
- 775,000 775,000 Staples Incorporated, 7.13%, 08/15/07................. - 795,344 795,344
1,500,000 - 1,500,000 Tatneft Finance, - - -
- - - 9.000% due 10/29/2002.............................. 1,357,500 - 1,357,500
7,800,000 - 7,800,000 Textron Inc., Deb., - - -
- - - 8.750% due 07/01/2022.............................. 8,578,580 - 8,578,580
8,260,000 - 8,260,000 Time Warner Inc., Deb., - - -
- - - 9.150% due 02/01/2023.............................. 10,162,920 - 10,162,920
- - - United Air Lines Inc.: - - -
5,000,000 - 5,000,000 Equipment Trust certificates, - - -
- - - 10.850% due 07/05/2014............................ 6,467,815 - 6,467,815
- - - Pass-through certificates: - - -
3,000,000 - 3,000,000 9.080% due 10/26/2015.............................. 3,563,730 - 3,563,730
5,500,000 - 5,500,000 9.560% due 10/19/2018.............................. 6,801,630 - 6,801,630
- 1,012,000 1,012,000 USG Corporation, 9.25%, 09/15/01...................... - 1,098,020 1,098,020
- 495,000 495,000 U.S.A Waste Services, 7.13%, 10/01/07................ - 513,563 513,563
300,000 - 300,000 US West Capital Funding, Inc., - - -
- - - 6.950% due 01/15/2037.............................. 315,901 - 315,901
1,200,000 - 1,200,000 Veterinary Centers of America, Conv. Sub. Deb , - - -
- - - 5.250% due 05/01/2006.............................. 1,032,000 - 1,032,000
1,000,000 - 1,000,000 V.F. Corporation, Note, - - -
- - - 9.500% due 05/01/2001.............................. 1,094,796 - 1,094,796
- 350,000 350,000 Wal-Mart Stores, 8.63%, 04/01/01...................... - 374,500 374,500
- - - WMX Technology Incorporated - - -
- 1,145,000 1,145,000 7.70%, 10/01/02....................................... - 1,195,094 1,195,094
- 200,000 200,000 8.25%, 11/15/99....................................... - 205,000 205,000
---------------------------------------
149,359,822 20,676,450 170,036,272
Transportation
- 200,000 200,000 Southwest Airlines, 7.88%, 09/01/07................... - 219,250 219,250
- - Union Pacific Corporation - - -
- 250,000 250,000 7.38%, 05/15/01....................................... - 258,125 258,125
- 200,000 200,000 9.63%, 12/15/02....................................... - 224,250 224,250
---------------------------------------
- 701,625 701,625
Utilities
- 305,000 305,000 Florida Power & Light, 5.38%, 04/01/00................ - 301,950 301,950
- 125,000 125,000 Virginia Electric & Power, 8.88%, 06/01/99............ - 128,750 128,750
---------------------------------------
- 430,700 430,700
Yankee (U S Dollar Denominated)
1,000,000 - 1,000,000 Alberta Province,
- - - 9.250% due 04/01/2000.............................. 1,061,880 - 1,061,880
8,500,000 - 8,500,000 Petro-Canada, Deb., - - -
- - - 9.250% due 10/15/2021.............................. 10,778,340 - 10,778,340
500,000 - 500,000 Peregrine Investment Finance, - - -
- - - 4.500% due 12/01/2000.............................. 52,500 - 52,500
1,650,000 - 1,650,000 Republic of Korea, Unsub., - - -
- - - 8.875% due 04/15/2008.............................. 1,622,722 - 1,622,722
1,750,000 - 1,750,000 SB Treasury Company, - - -
- - - 9.400% due 12/29/2049.............................. 1,779,713 - 1,779,713
1,500,000 - 1,500,000 Tokai PFD Capital company, - - -
- - - 9.980% due 12/29/2049.............................. 1,481,865 - 1,481,865
500,000 - 500,000 Total Access Communications, - - -
- - - 2.000% due 05/31/2006.............................. 412,500 - 412,500
5,750,000 - 5,750,000 Trans-Canada Pipeline Corporation, Deb., - - -
- - - 8.500% due 03/20/2023.............................. 6,331,095 - 6,331,095
---------------------------------------
23,520,615 - 23,520,615
Total Corporate Bonds and Notes 223,659,951 55,487,172 279,147,123
MORTGAGE-BACKED SECURITIES - 9 2%
Government Agency
Federal Home Loan Mortgage Corporation (FHLMC)
386,241 - 386,241 8.750% due 06/15/2005.............................. 391,457 - 391,457
1,000,000 - 1,000,000 7.500% due 07/15/2020.............................. 1,013,998 - 1,013,998
- - - GOLD: - - -
1,438,160 - 1,438,160 #C00362, - - -
- - - 9.000% due 06/01/2024............................. 1,519,956 - 1,519,956
727,003 - 727,003 #C80253, - - -
- - - 9.000% due 01/01/2025............................. 768,351 - 768,351
2,886,671 - 2,886,671 Weyerhauser 1982-C FHA Putable, - - -
7.430% due 06/01/2022.............................. 2,946,881 - 2,946,881
---------------------------------------
6,640,643 - 6,640,643
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WM INCOME FUND AND GRIFFIN BOND FUND
PRO FORMA COMBINED PORTFOLIO INVESTMENTS
PRINCIPAL AMOUNT APRIL 30, 1998 (Unaudited) MARKET VALUE
--------------------------------------- -----------------------------------------
WM GRIFFIN PRO FORMA WM GRIFFIN PRO FORMA
INCOME FUND BOND FUND COMBINED INCOME FUND BOND FUND COMBINED
CORPORATE BONDS AND NOTES - 80.5%
<S> <C> <C> <C> <C> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION
- 350,382 350,382 6.00%, 04/01/04................................ - 347,755 347,755
- 1,057,000 1,057,000 6.50%, 04/01/13 (B)............................ - 1,060,626 1,060,626
- 150,000 150,000 6.86%, 06/17/11................................ - 153,281 153,281
- 74,904 74,904 7.00%, 07/01/22................................ - 75,723 75,723
- 212,595 212,595 7.00%, 07/01/23................................ - 214,919 214,919
- 93,853 93,853 7.00%, 08/01/26................................ - 94,879 94,879
- 159,877 159,877 7.00%, 09/01/26................................ - 161,625 161,625
- 23,768 23,768 7.00%, 11/01/26................................ - 24,028 24,028
- 78,437 78,437 7.50%, 09/01/11................................ - 80,667 80,667
- 320,499 320,499 7.54%, 06/01/16................................ - 339,128 339,128
- 1,609,000 1,609,000 7.00%, 05/01/13................................ - 1,635,645 1,635,645
--------------------------------------
- 4,188,276 4,188,276
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)
2,382,790 - 2,382,790 6.000% due 02/15/2024.......................... 2,309,066 - 2,309,066
1,961,789 - 1,961,789 6.500% due 03/15/2024.......................... 1,946,467 - 1,946,467
1,723,504 - 1,723,504 6.500% due 07/15/2024.......................... 1,717,401 - 1,717,401
718,135 - 718,135 6.500% due 08/15/2023.......................... 712,527 - 712,527
1,972,532 - 1,972,532 6.500% due 12/15/2023.......................... 1,957,126 - 1,957,126
- 310,659 310,659 7.00%, 11/15/23................................ - 314,347 314,347
1,399,007 - 1,399,007 7.000% due 07/15/2023.......................... 1,417,376 - 1,417,376
- 1,607,000 1,607,000 7.50%, 05/01/28................................ - 1,648,670 1,648,670
- 548,024 548,024 7.50%, 12/15/23................................ - 565,151 565,151
- 233,804 233,804 8.00%, 06/15/27................................ - 242,644 242,644
- 313,051 313,051 8.00%, 07/15/17................................ - 326,062 326,062
- 1,877,536 1,877,536 8.00%, 08/15/27................................ - 1,948,526 1,948,526
181,726 - 181,726 9.000% due 12/01/2004.......................... 189,960 - 189,960
--------------------------------------
10,249,923 5,045,400 15,295,323
Total Government Agency............................ 16,890,566 9,233,676 26,124,242
Collateralized Mortgage Obligations (CMO)
- 519,000 519,000 Capital Equipment Receivable Trust, 6 28%,
06/15/00..................................... - 522,062 522,062
- 504,000 504,000 CIT Revenue Trust, 6.20%, 10/15/06............ - 505,562 505,562
1,750,000 - 1,750,000 Donaldson, Lufkin & Jenrette, Acceptance
Corporation, 1993-MF17,...................... - - -
- - - 7.350% due 12/18/2003...................... 1,789,979 - 1,789,979
1,403,751 - 1,403,751 Donaldson, Lufkin & Jenrette, Acceptance
Corporation, 1995-Q10,....................... - - -
- - - 8.3534% due 01/25/2026..................... 1,305,489 - 1,305,489
851,443 - 851,443 Resolution Trust Corporation-1991-M2 - A-2,... - - -
- - - 7.5062% due 09/25/2020..................... 724,659 - 724,659
850,000 - 850,000 Ryland Mortgage Securities Corporation -
1992-12A,.................................... - - -
- - - 6.500% due 09/25/2023...................... 837,305 - 837,305
--------------------------------------
Total Collateralized Mortgage Obligations..... 4,657,432 1,027,624 5,685,056
Total Mortgage-Backed Securities.............. 21,547,998 10,261,300 31,809,298
U.S. TREASURY OBLIGATIONS - 7.0%
U.S. Treasury Bonds
2,500,000 - 2,500,000 6.250% due 08/15/2023......................... 2,572,657 - 2,572,657
5,000,000 - 5,000,000 6.125% due 11/15/2027......................... 5,121,880 - 5,121,880
- 4,936,000 4,936,000 7.25%, 08/15/22............................... - 5,684,150 5,684,150
--------------------------------------
7,694,537 5,684,150 13,378,687
U.S. Treasury Notes
- 3,636,000 3,636,000 5.88%, 11/15/99............................... - 3,651,453 3,651,453
500,000 - 500,000 6.375% due 03/31/2001......................... 509,844 - 509,844
- 419,000 419,000 6.38%, 08/15/02............................... - 417,609 417,609
- 1,514,000 1,514,000 6.50%, 10/15/06............................... - 1,587,051 1,587,051
- 3,738,000 3,738,000 6.75%, 05/31/99............................... - 3,784,650 3,784,650
1,000,000 - 1,000,000 9.000% due 05/15/1998......................... 1,001,876 - 1,001,876
--------------------------------------
1,511,720 9,440,763 10,952,483
Total U.S. Treasury Obligations.................... 9,206,257 15,124,913 24,331,170
PREFERRED STOCK - 1.2%
2,000 - 2,000 California Federal Bank, Series B............. 217,813 - 217,813
15,100 - 15,100 First Industrial Realty Trust, Series A....... 396,375 - 396,375
28,000 - 28,000 Microsoft Corporation, Conv................... 2,607,500 - 2,607,500
15,000 - 15,000 Penncorp Financial Group...................... 903,750 - 903,750
--------------------------------------
Total Preferred Stock......................... 4,125,438 - 4,125,438
REPURCHASE AGREEMENT - 2.3%
1,438,000 - 1,438,000 Agreement with Goldman Sachs, 5.30% dated
4/30/98, to be repurchased at $1,438,212 on
5/1/98, collateralized by $1,398,886 U.S.
Treasury Note,
6.50% due 8/15/05 (Market Value $1,479,800)..... 1,438,000 - 1,438,000
- 6,443,304 6,443,304 State Street Bank & Trust Co.,
Master Repurchase Agreement, 4.25%,
Dated 4/30/98 due 5/1/98, Collateralized
by U.S. Government Securities - 6,443,291 6,443,291
--------------------------------------
Total Repurchase Agreement 1,438,000 6,443,291 7,881,291
Total Investments - 100.2%, (Cost $) 259,977,644 87,316,676 347,294,320
Other Assets and Liabilities, Net - (0.2%) 2,546,980 (3,288,567) (741,587)
TOTAL NET ASSETS - 100.0% 262,524,624 84,028,109 346,552,733
</TABLE>
- --------------------------------------------------------------------------------
(A) U.S. dollar denominated securities issued by foreign corporations and/or
governments
(B) Settlement is on a delayed delivery or when issued basis with final
maturity to be announced (TBA) in the future
The total cost basis of such securities is $1,155,096.
<PAGE>
WM INCOME FUND & GRIFFIN BOND FUND
Notes to Pro Forma Combined Financial Statements (Unaudited)
1. Basis of Combination
The pro forma combined financial statements reflect the pro forma combined
financial position of the WM Income Fund and the Griffin Bond Fund at April
30, 1998 and the pro forma combined results of operations for the year
ended December 31, 1997 and the four month period ended April 30, 1998 as
though the reorganization had occurred on January 1, 1997.
The pro forma combined financial statements are presented for the
information of the reader and may not necessarily be representative of how
the pro forma combined financial statements would have appeared had the
reorganization actually occurred.
The Pro Forma Combined Portfolio of Investments, Statement of Assets and
Liabilities, and the Statements of Operations should be read in conjunction
with the historical financial statements of the funds which are
incorporated by reference in the Statement of Additional Information.
The pro forma combined statements give effect to the proposed transfer of
the assets and stated liabilities of the Griffin Bond Fund in exchange for
shares of WM Income Fund. Under generally accepted accounting principles,
the historical cost of investment securities will be carried forward to the
surviving entity.
The pro forma combined statements do not reflect the expenses of either
fund in carrying out its obligations under the proposed Agreement and Plan
of Reorganization.
2. Pro Forma Combined Portfolio of Investments
Securities held by the two funds have been combined in the accompanying
Combined Portfolio of Investments. Securities are valued using the pricing
procedures and policies of the respective Acquiring Fund or Acquired Fund,
as applicable. For more information, see the WM Annual Reports or the
Griffin Annual Reports. Historical cost amounts represent the combined cost
basis of the securities.
3. Pro Forma Combined Statements of Assets and Liabilities
Shares outstanding have been adjusted to reflect the conversion of Griffin
Bond Fund shares into WM shares based upon the net asset value of the WM
Income Fund shares at April 30, 1998.
<PAGE>
WM GROWTH & INCOME FUND AND GRIFFIN GROWTH & INCOME FUND
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
GROWTH & GROWTH & PROFORMA PRO FORMA
INCOME FUND INCOME FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
ASSETS:
Investments at value $358,552,211 $851,615,589 $1,210,167,800
-
----------------------------------------------------------------
Total Investments 358,552,211 851,615,589 - 1,210,167,800
Cash/Cash Equivalents 628,677 97,112 725,789
Receivable for dollar roll fee income - -
Dividends and/or interest receivable 329,687 575,668 905,355
Receivable for Fund shares Sold 273,792 1,803,374 2,077,166
Receivable for investment securities sold 5,135,137 4,056,290 9,191,427
Unamortized organization costs - -
Prepaid expenses and other assets 40,894 55,086 95,980
----------------------------------------------------------------
Total Assets 364,960,398 858,203,119 - 1,223,163,517
LIABILITIES: -
Payable for dollar roll transactions - -
Variation margin payable - -
Reverse repurchase agreements - -
Payable for Fund shares redeemed - 1,427,330 1,427,330
Payable for investment securities purchased 8,090,892 8,118,105 16,208,997
Investment advisory fee payable 507,092 507,092
Administration fee payable - -
Shareholder servicing and distribution fees payable 147,766 147,766
Dividends payable - 14,192 14,192
Accrued legal and audit fees 15,000 15,000
Accrued Trustees' fees and expenses 4,556 4,556
Accrued registration and filing fees payable 67,000 67,000
Due to Custodian - -
Net Unrealized Depreciation of Fwd For Curr Cts - -
Accrued Expenses and other payables 360,179 425,671 785,850
----------------------------------------------------------------
Total Liabilities 8,451,071 10,726,712 - 19,177,783
TOTAL NET ASSETS $356,509,327 $847,476,407 - $1,203,985,734
================================================================
NET ASSETS:
Undistributed net investment income/
(accumulated net investment loss/distributions
in excess of net investment income) $ 113,589 $ (139,329) $ (25,740)
Accumulated net realized gain/(loss)
on investments sold, futures contracts,
closed written options, forward foreign currency
contracts and foreign currency transactions 23,572,875 14,101,909 37,674,784
Net unrealized app./(dep.) of investments,
foreign currency, written options, futures
contracts, forward foreign currency contracts
and other assets and liabilities 41,224,259 185,565,186 226,789,445
Paid-in capital 291,598,604 647,948,641 939,547,245
----------------------------------------------------------------
TOTAL NET ASSETS $356,509,327 $847,476,407 $ - $1,203,985,734
================================================================
NET ASSETS:
Class A Shares $302,118,157 $515,796,138 $ 817,914,295
================================================================
Class B Shares $ 54,391,170 $118,479,313 $ 172,870,483
================================================================
Class S Shares $ - $ 15,138,449 $ 15,138,449
================================================================
Class I Shares $ - $198,062,507 $ 198,062,507
================================================================
SHARES OUTSTANDING:
Class A Shares 14,866,688 23,965,982 (829,052) (A) 38,003,618
================================================================
Class B Shares 2,686,109 5,552,497 (137,083) (A) 8,101,523
================================================================
Class S Shares 708,785 - 708,785
================================================================
Class I Shares 9,182,243 - 9,182,243
================================================================
NET ASSET VALUE PER SHARE:
Class A Shares $ 20.32 $ 21.52 $ 21.52
================================================================
Class B Shares $ 20.25 $ 21.34 $ 21.34
================================================================
Class S Shares $ 21.36 $ 21.36
================================================================
Class I Shares $ 21.57 $ 21.57
================================================================
</TABLE>
See accompanying notes to pro forma financial statements
- --------------------------------------------------------------------------------
(A) Shares outstanding have been adjusted to reflect the conversion of Griffin
Growth & Income Fund shares into WM Growth & Income Fund shares based upon
the net asset value of WM Growth & Income Fund shares at April 30, 1998.
<PAGE>
WM Growth & Income Fund and Griffin Growth & Income Fund
Pro Forma Combined Statement of Operations
For the Period Ended 4/30/98
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
GROWTH & GROWTH & PRO FORMA PRO FORMA
INCOME FUND INCOME FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income 2,500,784 $ 3,125,551 5,626,335
Foreign Withholding Tax on Dividend Income - -
Interest Income 286,452 $ 61,677 348,129
Fee Income - -
-----------------------------------------------------------
Total Investment Income 2,787,236 3,187,228 - 5,974,464
-----------------------------------------------------------
EXPENSES:
Investment Advisory Fees 887,355 1,454,583 (266,264) (A) 2,075,674
Administration Fees 295,785 - (295,785) (B) -
Custodian Fees 65,218 81,674 146,892
Legal and Audit Fees 31,684 15,700 47,384
Trustees' Fees and Expenses 3,919 11,600 15,519
Amortization of Organization Costs 8,390 - 8,390
Registration and Filing Fees 20,722 67,000 87,722
Other 54,117 371,262 425,379
----------------------------------------------------------
Subtotal 1,367,190 2,001,819 (562,049) 2,806,960
Shareholder Servicing and Distribution Fees
Class A Shares 314,902 241,491 90,814 (C) 647,207
Class B Shares 219,316 192,380 25,783 (D) 437,479
Class S Shares 19,027 19,027
Interest Expense - -
Fees Waived and/or Expenses Absorbed by Investment -
Advisor (507,185) - 353,528 (E) (153,657)
-----------------------------------------------------------
Subtotal 1,394,223 2,454,717 (91,925) 3,757,016
Fees Reduced by Credits Allowed by the Custodian (5,633) (5,633)
-----------------------------------------------------------
Net Expenses 1,394,223 2,449,084 (91,925) 3,751,383
-----------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 1,393,013 738,144 91,925 2,223,082
-----------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains/(Loss) from:
Security Transactions 23,225,718 29,807,768 53,033,486
Forward Foreign Currency Contracts and
Foreign Currency Transactions - -
Futures Contracts - -
Net Unrealized Appreciation/(Depreciation) of:
Securities 23,374,245 99,087,021 122,461,266
Forward Foreign Currency Contracts - -
Foreign Currency, Written Options, Futures -
Contracts and Other Assets and Liabilities - -
-----------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investment 46,599,963 128,894,789 - 175,494,752
-----------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS -
RESULTING FROM OPERATIONS $47,992,976 $129,632,933 $ 91,925 $177,717,834
===========================================================
</TABLE>
(A) Decrease in management fees for Griffin shareholders to reflect the new fee
structure. Fees are based on .625% of average daily net assets up to
$250,000,000 and .50% of average daily net assets over that amount.
(B) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(C) Addition of shareholder servicing fee at a monthly rate of $1.25 per
shareholder account.
(D) Addition of shareholder servicing fee at a monthly rate of $1.35 per
shareholder account.
(E) Fees waived and/or expense absorbed by investment advisor adjusted to .04%
of average daily net assets.
<PAGE>
WM Growth & Income Fund and Griffin Growth & Income Fund
Pro Forma Combined Statement of Operations
For the Year Ended 10/31/97
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM
GROWTH & GROWTH & PRO FORMA PRO FORMA
INCOME FUND INCOME FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income 3,216,803 $4,332,639 7,549,442
Foreign Withholding Tax on Dividend Income - -
Interest Income 414,585 $ 188,590 603,175
Fee Income - -
------------------------------------------------------------
Total Investment Income 3,631,388 4,521,229 - 8,152,617
------------------------------------------------------------
EXPENSES:
Investment Advisory Fees 1,180,997 1,630,777 (185,014) (A) 2,626,760
Administration Fees 393,666 - (393,666) (B) -
Custodian Fees 115,440 55,954 171,394
Legal and Audit Fees 49,825 15,587 65,412
Trustees' Fees and Expenses 8,128 8,745 16,873
Amortization of Organization Costs 17,201 - 17,201
Registration and Filing Fees 33,872 80,933 114,805
Other 105,067 128,843 233,910
------------------------------------------------------------
Subtotal 1,904,196 1,920,839 (578,680) 3,246,355
Shareholder Servicing and Distribution Fees -
Class A Shares 423,312 752,248 181,628 (C) 1,357,188
Class B Shares 275,080 422,208 51,565 (D) 748,853
Class S Shares - -
Interest Expense - -
Fees Waived and/or Expenses Absorbed by Investment -
Advisor (971,544) - 786,403 (E) (185,141)
------------------------------------------------------------
Subtotal 1,631,044 3,095,295 440,915 5,167,254
Fees Reduced by Credits Allowed by the Custodian (10,113) (10,113)
------------------------------------------------------------
Net Expenses 1,631,044 3,085,182 440,915 5,157,141
------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 2,000,344 1,436,047 (440,915) 2,995,476
------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized Gains/(Loss) from:
Security Transactions 33,527,632 26,629,017 60,156,649
Forward Foreign Currency Contracts and -
Foreign Currency Transactions - -
Futures Contracts - -
Net Unrealized Appreciation/(Depreciation) of: -
Securities 8,827,962 37,406,069 46,234,031
Forward Foreign Currency Contracts - -
Foreign Currency, Written Options, Futures -
Contracts and Other Assets and - -
Liabilities
------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments 42,355,594 64,035,086 - 106,390,680
------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $44,355,938 $65,471,133 $(440,915) $109,386,156
============================================================
</TABLE>
(A) Decrease in management fees for Griffin shareholders to reflect the new
fee structure. Fees are based on .625% of average daily net assets up to
$250,000,000 and .50% of average daily net assets over that amount.
(B) Elimination of the Griffin administration fees, now incorporated in the
management fee structure.
(C) Addition of shareholder servicing fee at a monthly rate of $1.25 per
shareholder account.
(D) Addition of shareholder servicing fee at a monthly rate of $1.35 per
shareholder account.
(E) Fees waived and/or expense absorbed by investment advisor adjusted to .04%
of average daily net assets.
<PAGE>
WM Growth & Income Fund and Griffin Growth & Income Fund
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT Pro Forma Combined Portfolio of Investments MARKET VALUE
---------------------------------------------- -----------------------------------------
WM GRIFFIN APRIL 30, 1998 (Unaudited) WM GRIFFIN
GROWTH & GROWTH & PRO FORMA GROWTH & GROWTH & PRO FORMA
INCOME FUND INCOME FUND COMBINED INCOME FUND INCOME FUND COMBINED
<S> <C> <C> <C> <C> <C>
COMMON STOCK - 94 3%
AEROSPACE / DEFENSE
50,000 - 50,000 Boeing Company............................ 2,503,125 -- 2,503,125
71,719 - 71,719 Lockheed Martin Corporation............... 7,987,704 -- 7,987,704
127,900 - 127,900 Northrop Grumman Corporation.............. 13,517,431 -- 13,517,431
- 30,900 30,900 Raytheon Company, Series A................ -- 1,705,294 1,705,294
-----------------------------------------
24,008,260 1,705,294 25,713,554
BANKS / SAVING & LOANS
- 50,100 50,100 BankAmerica Corp.......................... -- 4,258,500 4,258,500
62,800 - 62,800 Bank of New York Company Inc.............. 3,709,125 -- 3,709,125
- 27,600 27,600 Chase Manhattan........................... -- 3,824,325 3,824,325
57,400 - 57,400 Citicorp.................................. 8,638,700 -- 8,638,700
240,000 - 240,000 First Union Corporation................... 14,490,000 -- 14,490,000
92,500 - 92,500 KeyCorp................................... 3,671,094 -- 3,671,094
74,000 - 74,000 Mellon Bank Corporation................... 5,328,000 -- 5,328,000
159,924 - 159,924 Norwest Corporation....................... 6,346,984 -- 6,346,984
240,000 - 240,000 Prime Bancshares Inc...................... 6,420,000 -- 6,420,000
15,025 - 15,025 Wells Fargo & Company..................... 5,536,713 -- 5,536,713
----------------------------------------
BASIC INDUSTRIES 54,140,616 8,082,825 62,223,441
102,900 - 102,900 Albemarle Corporation..................... 2,559,638 -- 2,559,638
267,100 - 267,100 Allegheny Teledyne Inc.................... 6,777,650 -- 6,777,650
- 123,400 123,400 Bethlehem Steel Corp (A)................ -- 1,920,413 1,920,413
- 67,200 67,200 British Steel PLC......................... -- 1,827,000 1,827,000
- 128,000 128,000 Broken Hill Proprietary Company Limited ADR -- 2,528,000 2,528,000
94,165 - 94,165 Commscope Inc (A)........................ 1,530,186 -- 1,530,186
- 79,600 79,600 Crown Cork & Seal......................... -- 4,144,175 4,144,175
62,100 - 62,100 Du Pont (E I ) de Nemours & Company....... 4,521,656 -- 4,521,656
- 75,400 75,400 IMC Global Inc............................ -- 2,714,400 2,714,400
- 75,900 75,900 Inco Limited.............................. -- 1,332,994 1,332,994
- 111,500 111,500 Louisiana Pacific Corp.................... -- 2,439,063 2,439,063
- 31,100 31,100 Phelps Dodge.............................. -- 2,087,588 2,087,588
- 45,600 45,600 Reynolds Metals Co........................ -- 3,009,600 3,009,600
- 64,500 64,500 Union Carbide............................. -- 3,128,250 3,128,250
614,000 226,400 840,400 Waste Management Inc...................... 20,569,000 7,584,400 28,153,400
98,600 - 98,600 Weyerhaeuser Company...................... 5,681,825 - 5,681,828
-----------------------------------------
41,639,955 32,715,883 74,355,838
BUSINESS SERVICES
200,733 - 200,733 ACNielson Corporation..................... 5,620,524 - 5,620,524
257,829 - 257,829 Cendant Corporation....................... 6,445,725 - 6,445,725
110,000 - 110,000 Cognizant Corporation..................... 5,658,125 - 5,658,125
----------------------------------------
17,724,374 - 17,724,374
CAPITAL GOODS
- 87,600 87,600 Alcatel Alsthom ADR....................... - 3,175,500 3,175,500
135,700 - 135,700 Allied Signal Inc......................... 5,945,355 - 5,945,355
- 18,500 18,500 Case Corporation.......................... - 1,175,906 1,175,906
80,000 - 80,000 Cooper Industries Inc..................... 5,350,000 - 5,350,000
81,450 - 81,450 Crane Company............................. 4,383,028 - 4,383,028
297,848 - 297,848 Donaldson Company Inc..................... 7,557,893 - 7,557,893
153,000 - 153,000 International Game Technology............. 4,255,313 - 4,255,313
- 43,200 43,200 Litton Industries Inc (A)............... - 2,592,000 2,592,000
- 31,100 31,100 Lockheed Martin Corp...................... - 3,463,763 3,463,763
- 47,100 47,100 LucasVarity PLC........................... - 2,119,500 2,119,500
- 26,900 26,900 Northrop Grumman Corporation.............. - 2,842,994 2,842,994
180,001 - 180,001 Tyco International Limited................ 9,810,031 - 9,810,031
- 41,200 41,200 United Technologies....................... - 4,055,625 4,055,625
-----------------------------------------
37,301,620 19,425,288 56,726,908
COMPUTER / SYSTEMS
235,800 - 235,800 Bay Networks Inc (A)..................... 5,526,563 - 5,526,563
120,800 - 120,800 Cabletron Systems, Inc (A)............... 1,600,600 - 1,600,600
97,250 - 97,250 Cisco Systems Inc (A)..................... 7,123,563 - 7,123,563
193,500 - 193,500 EMC Corporation (A)....................... 8,925,189 - 8,925,189
62,000 - 62,000 Hewlett-Packard Company................... 4,669,375 - 4,669,375
71,600 - 71,600 International Business Machines Corporation 8,296,650 - 8,296,650
-----------------------------------------
36,141,940 - 36,141,940
COMPUTER SOFTWARE
124,700 - 124,700 Adobe Systems Inc (A)..................... 6,242,794 - 6,242,794
385,950 - 385,950 Barra Inc................................. 9,262,800 - 9,262,800
67,000 - 67,000 Computer Associates International Inc..... 3,923,687 - 3,923,687
259,000 - 259,000 First Data Corporation.................... 8,773,625 - 8,773,625
173,000 - 173,000 Microsoft Corporation..................... 15,591,624 - 15,591,624
260,000 - 260,000 Oracle Corporation(A)..................... 6,727,500 - 6,727,500
-----------------------------------------
50,522,030 - 50,522,030
CONSUMER DURABLES
50,800 - 50,800 Goodyear Tire & Rubber Company............ 3,556,000 - 3,556,000
- 48,900 48,900 Hasbro Inc................................ - 1,800,134 1,800,134
- 82,900 82,900 Lear Corporation (A)..................... - 4,440,331 4,440,331
29,500 - 29,500 Miller Industries, Inc.................... 226,781 - 226,781
- 52,500 52,500 Philips Electronics N V ADR.............. - 4,725,000 4,725,000
161,900 - 161,900 Sony Corporation, ADR..................... 13,751,381 - 13,751,381
- 69,700 69,700 Whirlpool Corporation..................... - 5,018,400 5,018,400
252,400 - 252,400 Zurn Industries Inc....................... 10,884,750 - 10,884,750
----------------------------------------
28,418,912 15,983,865 44,402,777
</TABLE>
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<TABLE>
<CAPTION>
WM GROWTH & INCOME FUND AND GRIFFIN
GROWTH & INCOME FUND
PRINCIPAL AMOUNT PRO FORMA COMBINED PORTFOLIO OF INVESTMENTS MARKET VALUE
------------------------------------- --------------------------------------------
WM GRIFFIN APRIL 30, 1998 (Unaudited) WM GRIFFIN
GROWTH & GROWTH & PRO FORMA GROWTH & GROWTH & PRO FORMA
INCOME FUND INCOME FUND COMBINED INCOME FUND INCOME FUND COMBINED
COMMON STOCK - 94.3%
<S> <C> <C> <C> <C> <C> <C>
CONSUMER SERVICES
- 117,566 117,566 ACNielsen Corporation (A)............... - 3,291,848 3,291,848
- 140,300 140,300 American Stores Company.................. - 3,367,200 3,367,200
- 132,700 132,700 Circuit City Stores Inc.................. - 5,390,938 5,390,938
- 69,500 69,500 Deluxe Corp.............................. - 2,328,250 2,328,250
- 75,400 75,400 Federated Department Stores (A)......... - 3,708,738 3,708,738
- 115,800 115,800 Limited.................................. - 3,886,538 3,886,538
- 74,800 74,800 McDonald's Corp.......................... - 4,628,250 4,628,250
- 23,053 23,053 Reuters Holdings PLC ADR................. - 1,494,123 1,494,123
- 123,800 123,800 Toys R Us Holdings (A).................. - 3,412,238 3,412,238
- 166,000 166,000 Tricon Global Restaurants (A)........... - 5,270,500 5,270,500
- 71,900 71,900 Viacom Inc - Class B (A)................ - 4,170,200 4,170,200
- 152,500 152,500 Woolworth (A)........................... - 3,507,500 3,507,500
------------------------------------------
- 44,456,323 44,456,323
CONSUMER STAPLES
39,150 - 39,150 Alberto Culver Company, Class A.......... 1,047,263 - 1,047,263
157,800 - 157,800 Anheuser-Busch Companies Inc............. 7,229,213 - 7,229,213
87,300 - 87,300 Campbell Soup Company.................... 4,479,581 - 4,479,581
34,700 - 34,700 General Mills Inc........................ 2,344,419 - 2,344,419
121,900 - 121,900 Kimberly Clark Corporation............... 6,186,425 - 6,186,425
436,600 - 436,600 Kimberly Clark De Mexico, ADR............10,715,608 - 10,715,608
230,000 - 230,000 Pepsico Inc.............................. 9,128,125 - 9,128,125
170,000 - 170,000 Philip Morris Companies Inc.............. 6,343,125 - 6,343,125
90,000 - 90,000 Procter & Gamble Company................. 7,396,875 - 7,396,875
88,400 - 88,400 Ralston Purina Company................... 9,370,400 - 9,370,400
97,000 - 97,000 Sara Lee Corporation..................... 5,777,563 - 5,777,563
117,200 - 117,200 Unilever NV.............................. 8,746,050 - 8,746,050
------------------------------------------
78,764,647 - 78,764,647
CONSUMER/STAPLES
- 171,780 171,780 Archer Daniels Midland................... - 3,693,270 3,693,270
- 132,200 132,200 Harcourt General......................... - 6,899,188 6,899,188
- 67,600 67,600 Kimberly-Clark Corp...................... - 3,430,700 3,430,700
- 69,900 69,900 Loews Corp............................... - 6,994,369 6,994,369
- 177,600 177,600 Philip Morris Companies Inc.............. - 6,626,700 6,626,700
- 136,000 136,000 RJR Nabisco Holdings Corp................ - 3,782,500 3,782,500
------------------------------------------
- 31,426,727 31,426,727
ELECTRICAL EQUIPMENT
116,850 - 116,850 Emerson Electric Company................. 7,434,581 - 7,434,581
106,000 - 106,000 General Electric Company................. 9,023,250 - 9,023,250
------------------------------------------
16,457,831 - 16,457,831
ELECTRONICS / SEMICONDUCTORS
337,425 - 337,425 General Semiconductor, Inc............... 4,618,505 - 4,618,505
180,800 - 180,800 Intel Corporation........................14,610,900 - 14,610,900
------------------------------------------
19,229,405 - 19,229,405
ENERGY
- 18,000 18,000 British Petroleum ADR.................... - 1,701,000 1,701,000
- 77,608 77,608 Burlington Resources..................... - 3,647,200 3,647,200
- 58,900 58,900 ELF Aquitaine ADR........................ - 3,824,819 3,824,819
- 87,800 87,800 Mobil Corp............................... - 6,936,200 6,936,200
- 66,600 66,600 Oryx Energy (A)......................... - 1,739,925 1,739,925
- 103,800 103,800 Phillips Petroleum....................... - 5,144,588 5,144,588
- 130,900 130,900 Tosco Corp............................... - 4,663,313 4,663,313
- 115,300 115,300 Unocal Corp.............................. - 4,720,094 4,720,094
------------------------------------------
- 32,377,139 32,377,139
FINANCIAL SERVICES
- 42,000 42,000 Allmerica Financial Corp................. - 2,630,250 2,630,250
63,900 - 63,900 AMBAC Financial Group Inc................ 3,622,331 - 3,622,331
24,300 - 24,300 Capital One Financial Corporation........ 2,334,319 - 2,334,319
- 24,200 24,200 CIGNA Corp............................... - 5,007,888 5,007,888
- 49,100 49,100 Equitable Companies...................... - 3,013,513 3,013,513
- 86,500 86,500 Everest Reinsurance Hold................. - 3,568,125 3,568,125
208,000 - 208,000 Federal Home Loan Mortgage Corporation... 9,633,000 - 9,633,000
144,400 - 144,400 Federal National Mortgage Association.... 8,645,950 - 8,645,950
- 87,070 87,070 First Union Corporation.................. - 5,256,851 5,256,851
- 14,100 14,100 General RE Corporation................... - 3,152,231 3,152,231
267,850 - 267,850 Green Tree Financial Corporation.........10,914,888 - 10,914,888
68,650 - 68,650 Heller Financial Inc..................... 1,853,550 - 1,853,550
- 16,100 16,100 ITT Hartford Group....................... - 1,783,075 1,783,075
227,950 - 227,950 Liberty Financial Companies.............. 9,132,247 - 9,132,247
69,600 - 69,600 Marsh and McLennan Companies, Inc........ 6,342,300 - 6,342,300
- 89,112 89,112 NationsBank Corp......................... - 6,750,234 6,750,234
90,000 - 90,000 Providian Financial Corporation.......... 5,416,875 - 5,416,875
- 17,300 17,300 Republic New York Corp................... - 2,313,875 2,313,875
- 70,800 70,800 SAFECO Corp.............................. - 3,535,575 3,535,575
- 74,150 74,150 SLM Holding Corp......................... - 3,165,278 3,165,278
137,499 - 137,499 Travelers Group Inc...................... 8,413,220 - 8,413,220
- 48,330 48,330 Washington Mutual Inc.................... - 3,386,121 3,386,121
------------------------------------------
66,308,680 43,563,016 109,871,696
</TABLE>
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<TABLE>
<CAPTION>
WM Growth & Income Fund and Griffin Growth & Income Fund
Principal Amount Pro Forma Combined Portfolio of Investments Market Value
--------------------------------------- ------------------------------------------
April 30, 1998 (Unaudited)
WM Griffin WM Griffin
Growth & Growth & Pro Forma Growth & Growth & Pro Forma
Income Fund Income Fund Combined Income Fund Income Fund Combined
<S> <C> <C> <C> <C> <C>
66,308,680 43,563,016 109,871,696
Health Care
150,100 - 150,100 Abbott Laboratories........................ 10,976,063 - 10,976,063
- 36,200 36,200 Aetna Inc.................................. - 2,925,413 2,925,413
100,000 - 100,000 ALZA Corporation (A)....................... 4,793,750 - 4,793,750
40,000 - 40,000 American Home Products Corporation......... 3,725,000 - 3,725,000
- 60,300 60,300 Amgen (A)................................. - 3,595,388 3,595,388
95,600 - 95,600 Bristol-Myers Squibb Company............... 10,121,650 - 10,121,650
183,750 - 183,750 Columbia HCA Healthcare Corporation........ 6,052,266 - 6,052,266
- 238,300 238,300 Columbia/HCA Healthcare.................... - 7,849,006 7,849,006
- 127,550 127,550 Foundation Health Systems (A)............. - 3,690,978 3,690,978
341,500 81,100 422,600 Humana Inc. (A)............................ 9,220,500 2,189,700 11,410,200
146,550 - 146,550 Johnson & Johnson.......................... 10,460,006 - 10,460,006
97,400 - 97,400 Manor Care Inc............................. 3,415,087 - 3,415,087
275,000 - 275,000 Medpartners Inc............................ 2,818,750 - 2,818,750
117,000 - 117,000 Merck & Company, Inc....................... 14,098,500 - 14,098,500
123,033 - 123,033 Pacificare Health Systems-A................ 8,643,068 - 8,643,068
20,000 - 20,000 Pacificare Health Systems-B................ 1,432,500 - 1,432,500
80,000 - 80,000 Perkin Elmer Corporation................... 5,470,000 - 5,470,000
- 49,000 49,000 Pharmacia & Upjohn Inc..................... - 2,061,063 2,061,063
- 71,300 71,300 Tenet Healthcare Inc. (A)................. - 2,669,294 2,669,294
35,000 - 35,000 United Healthcare Corporation.............. 2,458,750 - 2,458,750
60,000 - 60,000 Warner Lambert Company..................... 11,351,250 - 11,351,250
Insurance
77,598 - 77,598 American International Group, Inc (A)..... 10,208,987 - 10,208,987
161,400 - 161,400 Penncorp Financial Group Inc............... 4,196,400 - 4,196,400
-----------------------------------------
14,405,387 - 14,405,387
Lodging
523,515 - 523,515 Choice Hotels International Inc............ 8,965,194 - 8,965,194
374,505 - 374,505 Sunburst Hospitality Corporation........... 3,019,447 - 3,019,447
-----------------------------------------
11,984,641 - 11,984,641
Media
194,800 72,200 267,000 Dun & Bradstreet Corporation............... 6,915,400 2,563,100 9,478,500
119,600 - 119,600 Lee Enterprises Inc........................ 3,744,975 3,744,975
205,000 - 205,000 Seagram Company Limited.................... 8,750,938 - 8,750,938
765,601 - 765,601 Tele-Communications TCI Ventures Group..... 12,488,866 - 12,488,866
191,075 - 191,075 Viacom Inc., Class A....................... 11,034,581 - 11,034,581
-----------------------------------------
42,934,760 2,563,100 45,497,860
Real Estate Investment Trusts (REITS)
117,500 - 117,500 CCA Prison Realty Trust.................... 4,163,906 - 4,163,906
90,000 - 90,000 Corrections Corporation of American........ 2,497,500 - 2,497,500
83,199 - 83,199 Equity Office Properties Trust (A)......... 2,365,974 - 2,365,974
136,600 - 136,600 Health Care Property Investors Inc......... 4,610,250 - 4,610,250
152,900 - 152,900 Starwood Hotel & Resort.................... 7,673,669 - 7,673,669
-----------------------------------------
21,311,299 - 21,311,299
Retail Sales
84,600 - 84,600 Federated Department Stores, Inc. (A)...... 4,177,125 - 4,177,125
311,500 - 311,500 Intimate Brands Inc........................ 9,033,500 - 9,033,500
51,000 - 51,000 Wal-Mart Stores Inc........................ 2,578,688 - 2,578,688
-----------------------------------------
15,789,313 - 15,789,313
Technology
- 92,000 92,000 Adaptec Incorporated (A).................. - 2,179,250 2,179,250
- 110,700 110,700 Applied Materials Inc. (A)................ - 3,999,038 3,999,038
- 138,000 138,000 Compaq Computer Corp....................... - 3,872,625 3,872,625
- 88,100 88,100 DSC Communications (A).................... - 1,585,800 1,585,800
- 118,800 118,800 First Data................................. - 4,024,350 4,024,350
- 70,800 70,800 Intel Corporation.......................... - 5,721,525 5,721,525
- 57,100 57,100 International Business Machines Corporation - 6,616,463 6,616,463
- 141,100 141,100 Lam Research Corp. (A).................... - 4,374,100 4,374,100
- 168,300 168,300 National Semiconductor (A)................ - 3,702,600 3,702,600
- 84,900 84,900 Sun Microsystems Inc....................... - 3,496,819 3,496,819
- 92,200 92,200 Teradyne (A).............................. - 3,365,300 3,365,300
-----------------------------------------
- 42,937,870 42,937,870
Transportation
- 105,200 105,200 Canadian Pacific Limited ORD PAR........... - 3,096,825 3,096,825
219,200 - 219,200 Expeditors International of Washington Inc. 9,316,000 - 9,316,000
- 122,800 122,800 Republic Industries Inc.................... - 3,415,375 3,415,375
- 130,300 130,300 Union Pacific.............................. - 7,133,925 7,133,925
130,100 - 130,100 Union Pacific Corporation.................. 7,122,975 - 7,122,975
-----------------------------------------
16,438,975 13,646,125 30,085,100
Utilities
- 51,000 51,000 A T & T Corporation........................ - 3,063,188 3,063,188
- 32,172 32,172 Bell Atlantic.............................. - 3,010,093 3,010,093
49,472 - 49,472 British Petroleum ADR...................... 4,675,058 - 4,675,058
- 64,600 64,600 CMS Energy Corp............................ - 2,822,213 2,822,213
120,900 - 120,900 Comcast Corporation-Special Class A........ 4,329,731 - 4,329,731
- 35,900 35,900 Duke Power................................. - 2,077,713 2,077,713
- 82,300 82,300 Edison International....................... - 2,453,569 2,453,569
222,900 - 222,900 Enron Corporation.......................... 10,963,894 - 10,963,894
143,660 - 143,660 Exxon Corporation.......................... 10,478,201 - 10,478,201
- 55,300 55,300 GTE Corporation............................ - 3,231,594 3,231,594
- 86,100 86,100 Illinova Corp.............................. - 2,631,431 2,631,431
97,400 - 97,400 Mobil Corporation.......................... 7,694,600 - 7,694,600
103,800 - 103,800 Pennzoil Company........................... 6,649,687 - 6,649,687
- 60,400 60,400 Pinnacle West Capital Corp................. - 2,672,700 2,672,700
145,600 - 145,600 Royal Dutch Petroleum...................... 8,235,500 - 8,235,500
182,900 - 182,900 SBC Communications Inc..................... 7,578,919 - 7,578,919
- 89,000 89,000 Southern Company........................... - 2,358,500 2,358,500
249,600 - 249,600 Sprint Corporation......................... 17,050,800 - 17,050,800
333,700 - 333,700 Tosco Corporation.......................... 11,888,062 - 11,888,062
230,000 - 230,000 WorldCom Inc. (A).......................... 9,839,687 - 9,839,687
-----------------------------------------
99,384,139 24,321,001 123,705,140
Total Common Stocks 797,943,924 338,185,298 1,136,129,222
</TABLE>
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<TABLE>
<CAPTION>
WM GROWTH & INCOME FUND AND GRIFFIN GROWTH & INCOME FUND
Principal Amount Pro Forma Combined Portfolio of Investments Market Value
-------------------------------------- ---------------------------------------
WM Griffin April 30, 1998 (Unaudited) WM Griffin
Growth & Growth & Pro Forma Growth & Growth &
Income Fund Income Fund Combined Income Fund Income Fund
<S> <C> <C> <C> <C> <C>
CONVERTIBLE NOTES - 0.5%
580,000 - 580,000 Alberto-Culver Corporation
- - - 5.500% due 06/30/2005............................. 960,625 -
2,662,000 - 2,662,000 Berkshire Hathaway, Conv. Sr. Note, - -
- - - 1.000% due 12/03/2001............................. 4,934,683 -
1,000 - 1,000 Lehman Brothers Holdings, - -
- - - 5.000% due 02/26/2001............................. 69,000 -
------------- ------------
Total Convertible Notes 5,964,308 -
PREFERRED STOCK - 3.5%
36,000 - 36,000 Cendant Corporation, Conv. Pfd.,
- - - 7.500% due 02/16/2001............................. 1,482,750 -
110,000 - 110,000 Loral Space & Communication, 3.000%.................. 9,267,500 -
220,500 - 220,500 Medpartners Inc -"TAPS".............................. 2,907,844 -
- 109,500 109,500 News Corporation, Ltd. ADR........................... - 2,552,719
135,000 - 135,000 Nextlink Communications, Conv. Pfd., - -
- - - 6.500% due 03/31/2010............................. 6,361,875 -
128,900 - 128,900 Pacificare Health Systems-Pfd........................ 3,560,863 -
158,100 - 158,100 Penncorp Financial Group, $3.375, Series............. 9,525,525 -
94,600 - 94,600 Sinclair Broadcast Group............................. 6,149,000 -
-----------------------------
Total Preferred Stocks 39,255,357 2,552,719
REPURCHASE AGREEMENT - 2.2%
8,452,000 - 8,452,000 Agreement with Goldman Sachs, 5.30% dated
4/30/98, to be repurchased
at $8,453,244 on 5/1/98, collateralized by
$8,222,101 U.S. Treasury Note,
6.50% due 8/15/05 (value $8,697,682)............... 8,452,000 -
- 17,814,208 17,814,208 Agreement withi State Street Bank & Trust Co.
Master Repurchase Agreement, 4.25%, dated
4/30/98 due 5/1/98, Collateralized by
U.S. Government Securities
(delivery value $17,814,208)......................... - 17,814,208
-----------------------------
Total Repurchase Agreements 8,452,000 17,814,208
Total Investments - 100.5% (Cost $983,378,354) 851,615,589 358,552,225
Other Assets and Liabilities, Net - (0.5%) (4,139,182) (2,042,898)
TOTAL NET ASSETS - 100.0% 847,476,407 356,509,327
<CAPTION>
PRO FORMA
COMBINED
CONVERTIBLE NOTES - 0.5%
<S> <C> <C> <C> <C>
580,000 - 580,000 Alberto-Culver Corporation
- - - 5.500% due 06/30/2005............................. 960,625
2,662,000 - 2,662,000 Berkshire Hathaway, Conv. Sr. Note, -
- - - 1.000% due 12/03/2001............................. 4,934,683
1,000 - 1,000 Lehman Brothers Holdings, -
- - - 5.000% due 02/26/2001............................. 69,000
-------------
Total Convertible Notes 5,964,308
PREFERRED STOCK - 3.5%
36,000 - 36,000 Cendant Corporation, Conv. Pfd.,
- - - 7.500% due 02/16/2001............................. 1,482,750
110,000 - 110,000 Loral Space & Communication, 3.000%.................. 9,267,500
220,500 - 220,500 Medpartners Inc -"TAPS".............................. 2,907,844
- 109,500 109,500 News Corporation, Ltd. ADR........................... 2,552,719
135,000 - 135,000 Nextlink Communications, Conv. Pfd.,................. -
- - - 6.500% due 03/31/2010 6,361,875
128,900 - 128,900 Pacificare Health Systems-Pfd. 3,560,863
158,100 - 158,100 Penncorp Financial Group, $3.375, Series 9,525,525
94,600 - 94,600 Sinclair Broadcast Group 6,149,000
--------------
Total Preferred Stocks 41,808,076
REPURCHASE AGREEMENT - 2.2%
8,452,000 - 8,452,000 Agreement with Goldman Sachs, 5.30% dated
4/30/98, to be repurchased
at $8,453,244 on 5/1/98, collateralized by
$8,222,101 U.S. Treasury Note,
6.50% due 8/15/05 (value $8,697,682) 8,452,000
- 17,814,208 17,814,208 Agreement withi State Street Bank & Trust Co.
Master Repurchase Agreement, 4.25%, dated
4/30/98 due 5/1/98, Collateralized by
U.S. Government Securities
(delivery value $17,814,208) 17,814,208
--------------
Total Repurchase Agreements 26,266,208
TOTAL INVESTMENTS - 100.5% (COST $983,378,354) 1,210,167,800
OTHER ASSETS AND LIABILITIES, NET - (0.5%) (6,182,066)
TOTAL NET ASSETS - 100.0% 1,203,985,734
</TABLE>
- --------------------------------------------------------------------------------
(A) Non-Income Producing Security
<PAGE>
WM GROWTH & INCOME FUND AND GRIFFIN GROWTH & INCOME FUND
Notes to Pro Forma Combined Financial Statements (Unaudited)
1. Basis of Combination
The pro forma combined financial statements reflect the pro forma combined
financial position of the WM Growth & Income Fund and the Griffin Growth &
Income Fund at April 30, 1998 and the pro forma combined results of
operations for the year ended October 31, 1997 and the six month period
ended April 30, 1998 as though the reorganization had occurred on November 1,
1996.
The pro forma combined financial statements are presented for the information
of the reader and may not necessarily be representative of how the pro forma
combined financial statements would have appeared had the reorganization
actually occurred.
The Pro Forma Combined Portfolio of Investments, Statement of Assets and
Liabilities, and the Statement of Operations should be read in conjunction
with the historical financial statements of the funds which are incorporated
by reference in the Statement of Additional Information.
The pro forma combined statements give effect to the proposed transfer of the
assets and stated liabilities of the Griffin Growth & Income Fund in exchange
for shares of WM Growth & Income Fund. Under generally accepted accounting
principles, the historical cost of investment securities will be carried
forward to the surviving entity.
The pro forma combined statements do not reflect the expenses of either fund
in carrying out its obligations under the proposed Agreement and Plan of
Reorganization.
2. Pro Forma Combined Portfolio of Investments
Securities held by the two funds have been combined in the accompanying
Combined Portfolio of Investments. Securities are valued using the pricing
procedures and policies of the respective Acquiring Fund or Acquired Fund, as
applicable. For more information, see the WM Annual Reports or the Griffin
Annual Report. Historical cost amounts represent the combined cost basis of
the securities.
3. Pro Forma Combined Statements of Assets and Liabilities
Shares outstanding have been adjusted to reflect the conversion of Griffin
Growth & Income Fund shares into WM shares based upon the net asset value of
the WM Growth & Income Fund shares at April 30, 1998.
<PAGE>
WM GROWTH FUND AND GRIFFIN GROWTH FUND
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM PRO FORMA PRO FORMA
GROWTH FUND GROWTH FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
ASSETS:
Investments at value $98,207,349 $279,047,749 $377,255,098
-
--------------------------------------------------------------
Total Investments 98,207,349 279,047,749 - 377,255,098
Cash/Cash Equivalents 90,910 - 90,910
Receivable for dollar roll fee income - -
Dividends and/or interest receivable 36,088 78,502 114,590
Receivable for Fund shares Sold 6,955 124,357 131,312
Receivable for investment securities sold 65,721 3,837,149 3,902,870
Unamortized organization costs - -
Receivable from investment advisor - -
Prepaid expenses and other assets 13,091 3,648 16,739
--------------------------------------------------------------
Total Assets 98,420,114 283,091,405 - 381,511,519
==============================================================
LIABILITIES: -
Payable for dollar roll transactions - -
Variation margin payable - -
Reverse repurchase agreements - -
Payable for Fund shares redeemed - 1,343,140 1,343,140
Payable for investment securities purchased 890,591 431,425 1,322,016
Investment advisory fee payable 264,023 264,023
Administration fee payable - -
Shareholder servicing and distribution fees payable 9,924 9,924
Dividends payable - 204 204
Accrued legal and audit fees - -
Accrued transfer agent fees - -
Accrued Trustees' fees and expenses - -
Accrued registration and filing fees payable - -
Due to Custodian 1,225,485 1,225,485
Net unrealized depreciation of fwd for cur cts 37,644 37,644
Accrued Expenses and other payables 102,717 225,391 328,108
--------------------------------------------------------------
Total Liabilities 993,308 3,537,236 - 4,530,544
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL NET ASSETS $97,426,806 $279,554,169 $ - $376,980,975
==============================================================
NET ASSETS:
Undistributed net investment income/
(accumulated net investment loss/distributions
in excess of net investment income) $ (437,403) $ (12,382) $ (449,785)
Accumulated net realized gain/(loss)
on investments sold, futures contracts,
closed written options, forward foreign currency
contracts and foreign currency transactions (3,841,529) 45,367,823 41,526,294
Net unrealized app./(dep.) of investments,
foreign currency, written options, futures
contracts, forward foreign currency contracts
and other assets and liabilities 24,497,727 66,535,577 91,033,304
Paid-in capital 77,208,011 167,663,151 244,871,162
--------------------------------------------------------------
TOTAL NET ASSETS $97,426,806 $279,554,169 $ - $376,980,975
==============================================================
NET ASSETS:
Class A Shares $90,836,380 $112,153,051 $202,989,431
==============================================================
Class B Shares $ 6,590,426 $ 38,389,530 $ 44,979,956
==============================================================
Class S Shares $ 13,282,870 $ 13,282,870
==============================================================
Class I Shares $115,728,718 $115,728,718
==============================================================
SHARES OUTSTANDING:
Class A Shares 5,000,777 6,075,731 (79,846) (A) 10,996,662
==============================================================
Class B Shares 368,221 2,154,124 1,583 (A) 2,523,928
==============================================================
Class S Shares 745,165 - 745,165
==============================================================
Class I Shares 6,234,430 - 6,234,430
==============================================================
NET ASSET VALUE PER SHARE:
Class A Shares $18.16 $18.46 $18.46
==============================================================
Class B Shares $17.90 $17.82 $17.82
==============================================================
Class S Shares $17.83 $17.83
==============================================================
Class I Shares $18.56 $18.56
==============================================================
</TABLE>
See accompanying notes to pro forma financial statements
- --------------------------------------------------------------------------------
(A) Shares outstanding have been adjusted to reflect the conversion of Griffin
Growth Fund shares into WM Growth Fund shares based upon the net asset
value of WM Growth Fund shares at June 30, 1998.
<PAGE>
WM Growth Fund and Griffin Growth Fund
Pro Forma Combined Statement of Operations
For the Year Ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
GRIFFIN WM PRO FORMA PRO FORMA
GROWTH FUND GROWTH FUND ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income $ 322,886 $ 1,382,894 $ 1,705,780
Foreign withholding tax on dividend income (16,446) (16,446)
Interest Income 59,579 774,473 834,052
Fee Income - -
------------------------------------------------------------------------
Total Investment Income 382,465 2,140,921 - 2,523,386
------------------------------------------------------------------------
EXPENSES:
Investment Advisory fee 434,066 2,739,222 586,044 (A) 3,759,332
Administration fee 144,689 723,887 (868,576) (B) -
Custodian fee 94,870 64,008 158,878
Legal and Audit fees 37,738 34,992 72,730
Trustees' fees and expenses 7,943 18,682 26,625
Amortization of organization costs 5,103 9,110 14,213
Registration and filing fees 9,309 33,132 42,441
Other 43,457 257,676 301,133
------------------------------------------------------------------------
Subtotal 777,175 3,880,709 (282,532) 4,375,352
Shareholder servicing and distribution fees
Class A Shares 168,889 326,313 271,822 (C) 767,024
Class B Shares 47,886 350,784 84,990 (D) 483,660
Class S Shares 142,061 3,890 (E) 145,951
Interest expense - -
Fees waived and/or expenses absorbed by -
investment advisor (223,015) - (1,062,214) (F) (1,285,229)
------------------------------------------------------------------------
Subtotal 770,935 4,699,867 (984,044) 4,486,758
Fees reduced by credits allowed by the custodian (6,149) (6,149)
------------------------------------------------------------------------
Net expenses 770,935 4,693,718 (984,044) 4,480,609
------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) (388,470) (2,552,797) 984,044 (1,957,223)
------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Realized gain from security transactions
Security transactions (2,148,446) 57,657,686 55,509,240
Forward foreign currency contracts and -
foreign currency transactions 776,368 776,368
Futures contracts -
Net unrealized appreciation/(depreciation) of:
Securities 15,830,547 33,821,257 49,651,804
Forward foreign currency contracts (333,137) (333,137)
Foreign currency, written options, futures
contracts and other assets and liabilities 13,146 13,146
------------------------------------------------------------------------
Net realized/unrealized gains/(losses) on invsts 13,682,101 91,935,320 - 105,617,421
------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS -
RESULTING FROM OPERATIONS $ 13,293,631 $ 89,382,523 984,044 $ 103,660,198
========================================================================
</TABLE>
(A) Increase in management fees for Griffin shareholders to reflect the new fee
structure. Fees are based on 1.10% of average daily net assets up to
$100,000,000 and 1.05% of average daily net assets up to $200,000,000 and
1.025% over that amount.
(B) Elimination of the administration fees, now incorporated in the management
fee structure.
(C) Addition of shareholder servicing fee at a monthly rate of $1.25 per
shareholder account.
(D) Addition of shareholder servicing fee at a monthly rate of $1.35 per
shareholder account.
(E) Addition of shareholder servicing fee at a monthly rate of $1.35 per
shareholder account.
(F) Fees waived and/or expense absorbed by investment advisor adjusted to .36%
of average daily net assets.
<PAGE>
<TABLE>
<CAPTION>
WM GROWTH FUND AND GRIFFIN GROWTH FUND
PRO FORMA COMBINED PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (Unaudited)
SHARES MARKET VALUE
- ---------------------------------- ------------------------------------------
WM GRIFFIN PRO FORMA WM GRIFFIN PRO FORMA
GROWTH FUND GROWTH FUND COMBINED GROWTH FUND GROWTH FUND COMBINED
<C> <C> <C> <S> <C> <C> <C>
COMMON STOCK - 99.6%
BANKS / SAVINGS & LOANS
12,690 - 12,690 Ambanc Holding Company, Inc............. 225,247 - 225,247
44,580 - 44,580 Bank of New York Company, Inc........... 2,705,449 - 2,705,449
62,035 - 62,035 BankAmerica Corporation................. 5,362,150 - 5,362,150
18,615 - 18,615 First Defiance Financial Corporation.... 260,610 - 260,610
11,050 - 11,050 Provident Financial Holdings, Inc. (A).. 229,287 - 229,287
28,245 - 28,245 Star Banc Corporation................... 1,804,149 - 1,804,149
66,255 - 66,255 U.S. Bancorp (A)........................ 2,848,965 - 2,848,965
- 6,000 6,000 Zions Bancorporation - 318,750 318,750
----------------------------------------
13,435,857 318,750 13,754,607
BUSINESS SERVICES
- 8,500 8,500 AccuStaff Inc. (A)..................... - 265,625 265,625
- 11,600 11,600 Air Express International............... - 310,300 310,300
15,640 10,500 26,140 Apollo Group Incorporated (A).......... 517,098 347,156 864,254
- 14,600 14,600 Carnival Corp........................... - 578,525 578,525
- 5,100 5,100 Catalina Marketing Corp. (A)........... - 264,881 264,881
- 19,191 19,191 Cendant Corporation (A)................ - 400,612 400,612
48,940 7,300 56,240 Cognizant Corporation................... 3,089,338 459,900 3,549,238
- 15,025 15,025 Comair Holdings Inc..................... - 463,897 463,897
- 9,200 9,200 Equifax Inc............................. - 334,075 334,075
- 7,200 7,200 Equity Corporation International (A)... - 172,800 172,800
- 8,700 8,700 Interim Services Incorporated (A)...... - 279,488 279,488
- 6,500 6,500 Interpublic Group of Companies Inc...... - 394,469 394,469
- 9,800 9,800 Kansas City Southern Industries Inc..... - 486,325 486,325
58,030 - 58,030 Lamar Advertising Company (A)........... 2,081,826 - 2,081,826
- 11,300 11,300 LaSalle Partners Incorporated (A)...... - 502,850 502,850
- 5,900 5,900 Manpower Inc............................ - 169,256 169,256
- 18,200 18,200 Mutual Risk Management LTD.............. - 663,163 663,163
- 7,200 7,200 Omnicom Group Incorporated.............. - 359,100 359,100
93,309 - 93,309 Outdoor Systems, Inc. (A)............... 2,612,652 - 2,612,652
- 10,050 10,050 Paychex Inc............................. - 408,909 408,909
- 8,400 8,400 Primark Corporation (A)................ - 263,025 263,025
- 7,600 7,600 Quintiles Transnational Corporation (A). - 373,825 373,825
- 2,686 2,686 Reuters Holdings PLC ADR................ - 183,991 183,991
- 10,850 10,850 Robert Half International Inc (A)...... - 606,244 606,244
- 14,900 14,900 Romac International (A)................ - 452,588 452,588
36,605 - 36,605 Sapient Corporation (A)................. 1,930,914 - 1,930,914
- 14,200 14,200 Security Capital Group, Series B (A)... - 378,075 378,075
- 8,000 8,000 Service Corporation International....... - 343,000 343,000
35,600 - 35,600 Snyder Communications (A)............... 1,566,400 - 1,566,400
- 10,300 10,300 Superior Services (A).................. - 309,644 309,644
- 6,525 6,525 Sylvan Learning Systems (A)............ - 213,694 213,694
- 10,250 10,250 The Vincam Group (A)................... - 201,156 201,156
</TABLE>
<PAGE>
WM Growth Fund and Griffin Growth Fund
Pro Forma Combined Portfolio of Investments
June 30, 1998 (Unaudited)
<TABLE>
<C> <C> <C> <S> <C> <C> <C>
- 11,300 11,300 U.S.A. Waste Services (A).................... - 557,938 557,938
- 10,437 10,437 Werner Enterprise Inc. ...................... - 198,955 198,955
---------------------------------------
11,798,228 10,943,466 22,741,694 X
CAPITAL GOODS
- 7,400 7,400 Agco Corp.................................... - 152,163 152,163
- 8,950 8,950 Cable Design Technologies (A)............... - 184,594 184,594
- 11,800 11,800 Danaher Corp................................. - 432,913 432,913
- 11,700 11,700 Donaldson Company, Inc....................... - 276,413 276,413
- 5,000 5,000 EVI Weatherford Corporation - 185,625 185,625
68,620 - 68,620 Federal-Mogul Corporation.................... 4,631,850 - 4,631,850
- 8,050 8,050 IDEX Corporation............................. - 277,725 277,725
- 4,900 4,900 Kennametal Inc............................... - 204,575 204,575
- 7,000 7,000 Littlelfuse Inc. (A)........................ - 176,750 176,750
85,210 - 85,210 Monsanto Company............................. 4,761,109 - 4,761,109
- 11,800 11,800 MSC Industrial Direct Company................ - 336,300 336,300
- 6,950 6,950 Parker-Hannifin.............................. - 264,969 264,969
- 9,300 9,300 Roper Industries............................. - 242,963 242,963
82,150 - 82,150 Solutia Inc.................................. 2,356,678 - 2,356,678
- 4,000 4,000 SPX Corporation.............................. - 257,500 257,500
59,085 - 59,085 Tyco International Ltd....................... 3,722,355 - 3,722,355
- 5,200 5,200 U.S. Filter Corporation...................... - 145,925 145,925
---------------------------------------
15,471,992 3,138,415 18,610,407 X
COMMUNICATIONS EQUIPMENT
- 7,600 7,600 Ascend Communications Inc.................... - 376,675 376,675
- 8,500 8,500 Aspect Telecommunications Corp. (A)......... - 232,688 232,688
- 8,300 8,300 Coherent Communications Systems Corp. (A)... - 388,544 388,544
- 6,300 6,300 Comverse Technology Incorporated (A)........ - 326,813 326,813
- 8,200 8,200 DSP Communications Incorporated (A)......... - 112,750 112,750
- 11,200 11,200 Ericsson L.M. Telephone Co. ADR.............. - 320,600 320,600
- 11,200 11,200 Powertel Incorporated (A)................... - 207,200 207,200
- 10,200 10,200 WorldCom Incorporated (A)................... - 494,063 494,063
---------------------------------------
- 2,459,333 2,459,333 X
COMPUTER / SYSTEMS
13,862 7,400 121,262 Cisco Systems Inc. (A)...................... 10,482,420 681,263 11,163,683
47,090 - 47,090 Dell Computer Corporation (A)................ 4,370,541 - 4,370,541
65,045 - 65,045 General Instrument Corporation (A)........... 1,768,411 - 1,768,411
74,475 - 74,475 HBO & Company................................ 2,625,244 - 2,625,244
- 11,400 11,400 Intermedia Communications (A)............... - 478,088 478,088
---------------------------------------
19,246,616 1,159,351 20,405,967 X
COMPUTER SOFTWARE / SERVICES
- 8,800 8,800 ABR Information Services Incorporated (A)... - 209,000 209,000
- 5,800 5,800 Adobe Systems Inc............................ - 246,138 246,138
- 10,700 10,700 Affiliated Computer Services (A)............ - 411,950 411,950
29,700 - 29,700 Amazon.com, Inc. (A)......................... 2,962,575 - 2,962,575
91,527 7,600 99,127 America Online Delaware Inc. (A)............ 9,701,862 805,600 10,507,462
7,035 - 7,035 Aspect Development, Inc. (A)................. 532,022 - 532,022
115,910 - 115,910 Aspen Technology, Inc. (A)................... 5,853,455 - 5,853,455
- 16,800 16,800 BMC Software Inc. (A)....................... - 872,550 872,550
161,765 16,600 178,365 Cadence Design Systems (A).................. 5,055,156 518,750 5,573,906
</TABLE>
<PAGE>
WM Growth Fund and Griffin Growth Fund
Pro Forma Combined Portfolio of Investments
June 30, 1998 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
- 8,700 8,700 Cambridge Technology Partners................ - 475,238 475,238
- 7,600 7,600 CBT Group PLC ADR (A)....................... - 406,600 406,600
- 8,200 8,200 Citrix Systems (A).......................... - 560,675 560,675
- 15,500 15,500 Compuware Corp. (A)......................... - 792,438 792,438
- 6,400 6,400 DST Systems Incorporated (A)................ - 358,400 358,400
- 9,000 9,000 Electronic Arts (A)......................... - 486,000 486,000
- 24,600 24,600 HBO & Co..................................... - 867,150 867,150
- 7,400 7,400 IDX Systems Corporation (A)................. - 340,863 340,863
57,145 7,500 64,645 Intuit (A).................................. 3,500,131 459,375 3,959,506
50,905 - 50,905 JDA Software Group, Inc. (A)................. 2,227,094 - 2,227,094
122,070 - 122,070 Microsoft Corporation (A).................... 13,229,336 - 13,229,336
- 13,287 13,287 Network Associates Incorporated (A)......... - 636,115 636,115
- 10,750 10,750 Oracle Corp. (A)............................ - 264,047 264,047
359,935 10,200 370,135 Parametric Technology Company (A)............ 9,763,237 276,675 10,039,912
58,170 12,400 70,570 People Soft Inc. (A)........................ 2,733,990 582,800 3,316,790
- 12,200 12,200 Saville Systems Ireland PLC.................. - 611,525 611,525
- 5,500 5,500 Shared Medical Systems Corp.................. - 403,906 403,906
- 10,500 10,500 Sterling Commerce Inc. (A).................. - 509,250 509,250
48 - 48 Structural Dynamics Research Corporation (A). 1,110 - 1,110
- 8,000 8,000 SunGard Data Systems Incorporated (A)....... - 307,000 307,000
- 11,300 11,300 Symantec Corp. (A).......................... - 295,213 295,213
- 4,800 4,800 Synopsys Inc. (A)........................... - 219,600 219,600
- 8,000 8,000 Visio Corporation (A)....................... - 382,000 382,000
41,917 - 41,917 Wind River Systems (A)....................... 1,503,772 - 1,503,772
-----------------------------------
57,063,740 12,298,858 69,362,598
COMPUTER/ELECTRONIC EQUIPMENT
- 9,940 9,940 Dionex Corporation (A)...................... - 262,168 262,168
- 8,000 8,000 Sanmina Corporation (A)..................... - 347,000 347,000
- 15,450 15,450 Symbol Technologies.......................... - 583,238 583,238
- 9,600 9,600 Tellabs (A)................................. - 687,600 687,600
- 4,600 4,600 Teradyne Inc. (A)........................... - 123,050 123,050
- 5,650 5,650 Thermo Electron Corporation.................. - 193,159 193,159
- 10,500 10,500 Vitesse Semiconductor - 324,188 324,188
-----------------------------------
- 2,520,403 2,520,403
CONSUMER CYCLICALS
- 10,700 10,700 Bed Bath & Beyond (A)....................... - 554,394 554,394
- 7,100 7,100 Gulfstream Aerospace Corporation (A)........ - 330,150 330,150
- 8,800 8,800 Harley-Davidson Inc.......................... - 341,000 341,000
- 5,000 5,000 Harman International - 192,500 192,500
- 14,000 14,000 Leggett & Platt Inc. - 350,000 350,000
- 6,400 6,400 Lennar Corp.................................. - 188,800 188,800
- 11,800 11,800 Lilly Industries Inc......................... - 255,175 255,175
- 6,900 6,900 LNR Property Corporation..................... - 176,813 176,813
- 5,600 5,600 National Health Investors.................... - 186,200 186,200
- 10,700 10,700 Oakwood Homes Corp........................... - 321,000 321,000
- 6,700 6,700 Rouse Company................................ - 210,631 210,631
- 9,500 9,500 Security Capital Pacific Trust............... - 213,750 213,750
- 9,600 9,600 Sherwin-Williams Co.......................... - 318,000 318,000
- 6,500 6,500 TCA Cable TV Inc. - 390,000 390,000
</TABLE>
<PAGE>
WM Growth Fund and Griffin Growth Fund
Pro Forma Combined Portfolio of Investments
June 30, 1998 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
- 9,000 9,000 Univision Communications - 335,250 335,250
- 12,300 12,300 Valspar...................................... - 487,388 487,388
- 15,000 15,000 Williams-Sonoma Inc. (A).................... - 477,188 477,188
-----------------------------------
- 5,328,239 5,328,239
CONSUMER STAPLES
53,660 - 53,660 Delta and Pine Land Company.................. 2,387,870 - 2,387,870
260,340 - 260,340 Raisio Group Plc. (A)........................ 4,731,684 - 4,731,684
-----------------------------------
7,119,554 - 7,119,554
CONSUMER/ DURABLE
- 6,100 6,100 American Standard Companies (A)............. - 272,594 272,594
CONSUMER/ NON-DURABLE
- 6,200 6,200 Alberto-Culver Company....................... - 179,800 179,800
- 7,500 7,500 Harcourt General............................. - 446,250 446,250
- 8,500 8,500 International Multifoods Corporation......... - 233,750 233,750
- 9,200 9,200 Jones Apparel Group Inc...................... - 336,375 336,375
- 9,447 9,447 Lancaster Colony Inc......................... - 357,805 357,805
- 9,525 9,525 Mattel Inc................................... - 403,027 403,027
- 8,300 8,300 Nautica Enterprises Inc. (A)................ - 222,544 222,544
- 8,800 8,800 Pioneer Hi-Bred International................ - 364,100 364,100
- 12,000 12,000 Quiksilver Incorporated (A)................. - 239,250 239,250
- 4,800 4,800 Sealed Air Corporation (A).................. - 176,400 176,400
- 5,753 5,753 Tootsie Roll Industries Inc.................. - 441,543 441,543
- 6,500 6,500 Unifi Inc.................................... - 222,625 222,625
- 6,600 6,600 Warnaco Group Inc............................ - 280,088 280,088
- 8,500 8,500 Westwood One Inc. (A)....................... - 214,359 214,359
- 9,600 9,600 Wolverine World Wide......................... - 208,200 208,200
-----------------------------------
- 4,326,116 4,326,116
ELECTRONICS / SEMICONDUCTORS
- 9,100 9,100 Altera Corporation (A)...................... - 269,019 269,019
- 10,500 10,500 Applied Materials Inc. - 309,750 309,750
27,989 10,800 38,789 Analog Devices (A).......................... 687,480 265,275 952,755
- 7,500 7,500 Gateway 2000 Incorporated (A)............... - 379,688 379,688
- 7,000 7,000 Hubbell Incorporated, Series B............... - 291,375 291,375
- 4,000 4,000 Lattice Semiconductor Co. - 113,625 113,625
- 8,200 8,200 Linear Technology Corp....................... - 494,563 494,563
66,845 18,200 85,045 Maxim Integrated Products Inc. (A).......... 2,118,151 576,713 2,694,864
- 6,400 6,400 Microchip Technology Inc. (A)............... - 167,200 167,200
- 11,726 11,726 Molex Inc CL A............................... - 274,095 274,095
123,140 - 123,140 Nokia Corporation, Class A, Sponsored ADR.... 8,935,346 - 8,935,346
- 7,300 7,300 Raychem Corp................................. - 215,806 215,806
- 8,700 8,700 SCI Systems Inc. (A)........................ - 327,338 327,338
- 7,100 7,100 SDL Incorporated (A)........................ - 169,513 169,513
- 7,700 7,700 Tyco International........................... - 485,100 485,100
- 7,500 7,500 Xilinx Inc. (A)............................. - 255,000 255,000
-----------------------------------
11,740,977 4,594,060 16,335,037
FINANCIAL SERVICES
- 13,300 13,300 ACE Limited.................................. - 518,700 518,700
- 7,700 7,700 Ambac Financial Group Inc.................... - 450,450 450,450
</TABLE>
<PAGE>
WM Growth Fund and Griffin Growth Fund
Pro Forma Combined Portfolio of Investments
June 30, 1998 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
55,750 - 55,750 Associates First Capital Corporation, Class A 4,285,781 - 4,285,781
- 8,100 8,100 Bank of New York Co. Inc..................... - 491,569 491,569
- 8,500 8,500 Charter One Financial Securities - 286,344 286,344
- 11,100 11,100 City National Corp........................... - 410,006 410,006
- 9,100 9,100 Finova Group Inc............................. - 515,288 515,288
- 11,600 11,600 First American Corp., Tennessee.............. - 558,250 558,250
- 14,100 14,100 Franklin Resources Inc....................... - 761,400 761,400
58,335 - 58,335 Household International...................... 2,902,166 - 2,902,166
- 11,500 11,500 Investment Technology Group (A)............. - 316,250 316,250
- 7,200 7,200 JSB Financial Inc............................ - 421,650 421,650
- 5,100 5,100 Legg Mason Inc. - 293,569 293,569
- 4,868 4,868 Mercantile Bancorporation Inc................ - 245,226 245,226
- 7,900 7,900 Mercury General Corporation.................. - 508,069 508,069
- 6,400 6,400 MGIC Investment Corporation.................. - 365,200 365,200
- 7,400 7,400 Northern Trust Corporation................... - 564,250 564,250
- 4,500 4,500 Progressive Corporation...................... - 634,500 634,500
- 12,700 12,700 Protective Life Corporation.................. - 465,931 465,931
- 6,500 6,500 Providian Financial Corporation - 510,656 510,656
- 14,925 14,925 Raymond James Financial lnc.................. - 446,817 446,817
- 13,800 13,800 Schwab (Charles) Corp........................ - 448,500 448,500
- 14,000 14,000 Silicon Valley Bancshares (A)............... - 498,313 498,313
- 9,300 9,300 State Street Boston Corporation.............. - 646,350 646,350
- 9,900 9,900 SunAmerica Incorporated...................... - 568,631 568,631
- 10,000 10,000 TCF Financial................................ - 295,000 295,000
- 11,500 11,500 U.S. Bancorp................................. - 494,500 494,500
- 6,400 6,400 UICI (A).................................... - 174,400 174,400
-----------------------------------
7,187,947 11,889,819 19,077,766
HEALTH CARE PRODUCTS
- 5,100 5,100 Agouron Pharmaceuticals Incorporated (A).... - 154,594 154,594
82,330 - 82,330 ALZA Corporation (A)......................... 3,560,772 - 3,560,772
- 4,600 4,600 Amgen (A)................................... - 300,725 300,725
- 10,600 10,600 Arterial Vascular Engineering Inc. (A)...... - 378,950 378,950
- 7,000 7,000 Biochem Pharma Inc. (A)..................... - 185,500 185,500
- 6,400 6,400 Biogen Inc. (A)............................. - 313,600 313,600
- 4,500 4,500 Boston Scientific Corporation (A)........... - 322,313 322,313
- 6,050 6,050 Cardinal Health Inc.......................... - 567,188 567,188
35,275 - 35,275 Centocor, Inc. (A)........................... 1,278,719 - 1,278,719
- 175 175 Clinichen Development Inc. - 1,006 1,006
- 5,600 5,600 Elan PLC ADR (A)............................ - 360,150 360,150
83,350 - 83,350 Eli Lilly and Company (A).................... 5,506,309 - 5,506,309
- 5,800 5,800 Gilead Sciences Inc. (A).................... - 185,963 185,963
- 9,300 9,300 Guidant Corporation.......................... - 663,206 663,206
- 5,700 5,700 Guilford Pharmaceuticals Inc. (A)........... - 100,463 100,463
- 7,200 7,200 Henry Schein Incorporated.................... - 332,100 332,100
- 6,000 6,000 Human Genome Sciences Inc. (A).............. - 214,125 214,125
- 7,800 7,800 Incyte Pharmaceuticals Incorporated (A)..... - 266,175 266,175
- 5,800 5,800 Isis Pharmaceuticals (A).................... - 79,388 79,388
- 7,700 7,700 Life Technologies Inc........................ - 241,588 241,588
- 6,000 6,000 Medtronic Inc................................ - 382,500 382,500
</TABLE>
<PAGE>
WM Growth Fund and Griffin Growth Fund
Pro Forma Combined Portfolio of Investments
June 30, 1998 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
- 15,000 15,000 Millennium Pharmaceuticals Inc (A).......... - 211,875 211,875
75,104 11,000 86,104 Omnicare Inc................................. 2,863,340 419,375 3,282,715
46,725 - 46,725 Pfizer Inc. (A).............................. 5,078,423 - 5,078,423
- 9,900 9,900 Physio-Control International Corp. (A)...... - 260,494 260,494
- 5,700 5,700 Protein Design Labs Incorporated (A)........ - 137,334 137,334
43,400 - 43,400 Sofamor Danek Group, Inc. (A)................ 3,756,813 - 3,756,813
- 5,700 5,700 Sola International Inc. (A)................. - 186,319 186,319
- 8,900 8,900 Teleflex Inc................................. - 338,200 338,200
2,070 - 2,070 United States Surgical Corporation........... 94,444 - 94,444
208,175 - 208,175 Warner Lambert Company....................... 14,442,141 - 14,442,141
- 8,000 8,000 Watson Pharmaceuticals Incorporated (A)..... - 373,500 373,500
-----------------------------------
36,580,961 6,976,631 43,557,592
HMO/HOSPITAL MANAGEMENT
- 10,500 10,500 Concentra Managed Care Incorporated (A)..... - 273,000 273,000
- 6,100 6,100 Genesis Health Ventures (A)................. - 152,500 152,500
- 16,662 16,662 Health Management Association CL A (A)...... - 557,136 557,136
- 8,950 8,950 Healthcare & Retirement Corp. (A)........... - 352,966 352,966
- 14,300 14,300 HealthSouth Corp. (A)....................... - 381,631 381,631
- 9,400 9,400 Lincare Holdings Incorporated (A)........... - 395,388 395,388
- 11,500 11,500 Orthodontic Centers of America Inc (A)...... - 240,781 240,781
- 2,100 2,100 PacifiCare Health Systems (A)............... - 185,588 185,588
- 8,600 8,600 PhyCor Inc. (A)............................. - 142,438 142,438
- 12,150 12,150 Quorum Health Group Incorporated (A)........ - 321,975 321,975
- 8,915 8,915 Tenet Healthcare Corp. (A).................. - 278,594 278,594
- 18,279 18,279 Total Renal Care Holdings Incorporated (A).. - 630,626 630,626
- 6,100 6,100 United HealthCare Corp....................... - 387,350 387,350
- 7,800 7,800 Universal Health Services (A)............... - 455,325 455,325
-----------------------------------
- 4,755,298 4,755,298
MEDIA
- 9,000 9,000 360 Communications Company (A).............. - 288,000 288,000
- 12,200 12,200 Belo (A.H.) Corp............................. - 297,375 297,375
126,430 - 126,430 CBS Corporation (A).......................... 4,014,153 - 4,014,153
- 5,100 5,100 Centennial Cellular Corp. (A)............... - 190,294 190,294
- 3,600 3,600 Central Newspaper Inc........................ - 251,100 251,100
59,405 9,200 68,605 Chancellor Media Corporation (A)............ 2,949,830 456,838 3,406,668
- 9,300 9,300 Clear Channel Communications Inc. (A)....... - 1,014,863 1,014,863
- 9,800 9,800 Cox Communications (A)...................... - 474,688 474,688
- 6,400 6,400 Emmis Broadcasting Corp. (A)................ - 306,000 306,000
- 7,600 7,600 Jacor Communications Inc. (A)............... - 448,400 448,400
- 9,000 9,000 Meredith Corporation......................... - 422,438 422,438
- 27,600 27,600 Outdoor Systems.............................. - 772,800 772,800
328,421 - 328,421 TCI Ventures, Class A (A).................... 6,588,943 - 6,588,943
173,702 - 173,702 Time Warner Inc.............................. 14,840,665 - 14,840,665
- 3,900 3,900 U.S. Cellular Corp. (A)..................... - 119,925 119,925
7,295 - 7,295 United International Holdings, Inc. (A)...... 116,720 - 116,720
- 8,700 8,700 Valassis Communications (A)................. - 335,494 335,494
- 7,100 7,100 Vodafone Group PLC ADR....................... - 895,044 895,044
------------------------------------
28,510,311 6,273,259 34,783,570
OIL & GAS
</TABLE>
<PAGE>
WM Growth Fund and Griffin Growth Fund
Pro Forma Combined Portfolio of Investments
June 30, 1998 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- 3,500 3,500 Cooper Cameron Corporation - 178,500 178,500
1,731,236 - 1,731,236 Ocean Rig ASA (A)...................... 1,287,668 1,287,668
- 4,500 4,500 Sonat Inc. - 173,813 173,813
- 6,000 6,000 Veritas DGC Inc. - 299,625 299,625
-------------------------------
1,287,668 651,938 1,939,606 X
OTHER TECHNOLOGY
- 8,500 8,500 BE Aerospace (A)...................... - 247,563 247,563
- 7,500 7,500 Cognex Corp. (A)...................... - 138,750 138,750
- 6,500 6,500 Diebold Incorporated................... - 187,688 187,688
- 13,200 13,200 EMC Corp-Mass (A)..................... - 591,525 591,525
- 5,500 5,500 First Data Corporation - 183,219 183,219
- 13,200 13,200 Sun Microsystems Inc. (A)............. - 573,375 573,375
-------------------------------
- 1,922,120 1,922,120 X
RESOURCES
- 11,600 11,600 AES Corp. (A)......................... - 609,725 609,725
- 6,800 6,800 Apache Corp............................ - 214,200 214,200
- 9,300 9,300 B J Services Co. (A).................. - 270,281 270,281
- 5,900 5,900 Barrett Resources Corporation Inc. (A) - 220,881 220,881
- 6,100 6,100 Camco International Inc................ - 475,038 475,038
- 6,600 6,600 Devon Energy Corporation............... - 230,588 230,588
- 11,900 11,900 Ecolab................................. - 368,900 368,900
- 6,700 6,700 Noble Affiliates....................... - 254,600 254,600
- 10,000 10,000 Noble Drilling Corporation............. - 240,625 240,625
- 4,600 4,600 Nuevo Energy Co. (A).................. - 147,775 147,775
- 8,000 8,000 Ocean Energy Incorporated (A)......... - 156,500 156,500
- 12,000 12,000 Pride International Inc. (A).......... - 203,250 203,250
- 12,000 12,000 Sigma-Aldrich Corporation.............. - 421,500 421,500
- 8,200 8,200 Smith International (A)............... - 285,463 285,463
- 17,200 17,200 Sybron International Corp. (A)........ - 434,300 434,300
- 11,100 11,100 Tosco Corp............................. - 326,063 326,063
- 7,500 7,500 Waters Corporation (A)................ - 442,031 442,031
-------------------------------
- 5,301,720 5,301,720 X
RETAIL SALES
- 12,900 12,900 Autozone Inc. - 411,994 411,994
- 9,000 9,000 BJS Wholesale Club Inc. - 365,625 365,625
- 9,400 9,400 CVS Corporation - 366,013 366,013
- 12,100 12,100 Borders Group Incorporated (A)........ - 447,700 447,700
- 4,000 4,000 CDW Computer Centers Inc............... - 200,000 200,000
- 8,700 8,700 Circuit City Stores Inc................ - 407,813 407,813
- 9,500 9,500 CompUSA Inc. (A)...................... - 171,594 171,594
- 7,600 7,600 Consolidated Stores (A)............... - 275,500 275,500
51,335 - 51,335 Costco Companies, Inc. (A)............. 3,237,313 - 3,237,313
- 22,891 22,891 Dollar General Corp.................... - 905,625 905,625
- 8,030 8,030 Fred Meyer Incorporated (A)........... - 341,275 341,275
- 10,800 10,800 Host Marriott (A)..................... - 192,375 192,375
- 9,000 9,000 Kohls Corporation - 466,875 466,875
- 10,800 10,800 Land's End Inc. (A)................... - 341,550 341,550
- 8,700 8,700 Mirage Resorts (A)................... - 185,419 185,419
</TABLE>
<PAGE>
WM Growth Fund and Griffin Growth Fund
Pro Forma Combined Portfolio of Investments
June 30, 1998 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
- 9,000 9,000 Office Depot Inc. - 284,063 284,063
- 14,300 14,300 OfficeMax Incorporated (A)........... - 235,950 235,950
- 6,800 6,800 Outback Steakhouse Inc. (A).......... - 265,200 265,200
- 9,600 9,600 Richfood Holdings..................... - 198,600 198,600
- 13,400 13,400 Safeway Inc. (A)..................... - 545,213 545,213
- 6,200 6,200 Starbucks Corp. (A).................. - 331,313 331,313
- 13,650 13,650 The Men's Wearhouse Inc. (A)......... - 450,450 450,450
- 9,100 9,100 Tiffany & Company..................... - 436,800 436,800
- 19,600 19,600 TJX Companies......................... - 472,850 472,850
- 10,200 10,200 Viking Office Products (A)........... - 320,025 320,025
- 10,500 10,500 Zale Corp. (A)....................... - 334,031 334,031
----------------------------------
3,237,313 8,953,853 12,191,166 X
TECHNOLOGY
- 6,900 6,900 McLeod USA Inc. - 268,238 268,238
- 9,000 9,000 Nextel Communication Inc. - 223,875 223,875
25,675 - 25,675 Orbital Sciences Corporation (A)...... 959,603 - 959,603
80,570 - 80,570 Pittway Corporation, Class A.......... 5,952,109 - 5,952,109
- 5,000 5,000 Sofamor Danex Group - 432,813 432,813
114,710 - 114,710 UNUM Corporation...................... 6,366,405 - 6,366,405
- 8,000 8,000 VISX Inc. - 476,000 476,000
----------------------------------
13,278,117 1,400,926 14,679,043 X
UTILITIES /
TELECOMMUNICATIONS
77,790 - 77,790 At Home Corporation (A)............... 3,680,439 - 3,680,439
335,745 - 335,745 Comcast Corporation, Class A.......... 13,629,149 - 13,629,149
77,665 - 77,665 Cox Communications, Inc., Class A (A). 3,761,898 - 3,761,898
60,920 - 60,920 Liberty Media Group (A)............... 2,364,458 - 2,364,458
266,790 - 266,790 MediaOne Group Inc. (A)............... 11,722,086 - 11,722,086
337,589 - 337,589 Tele-Communications, Inc., Class A (A) 12,976,080 - 12,976,080
362,722 - 362,722 Telecom Italia SPA.................... 2,671,292 - 2,671,292
1 - 1 US West, Inc.......................... 23 - 23
114,510 - 114,510 Western Wireless Corporation (A)...... 2,283,043 - 2,283,043
----------------------------------
53,088,468 - 53,088,468 X
MISCELLANEOUS
- 13,000 13,000 Allied Waste Industries Inc. - 312,000 312,000
- 8,300 8,300 ASA Holding Inc. - 411,857 411,857
----------------------------------
- 723,857 723,857 X
Total Common Stocks 279,047,749 96,209,006 375,256,755
PRINCIPAL AMOUNT
REPURCHASE
AGREEMENT - 0.5%
- 1,998,343 1,998,343 State Street Bank & Trust Co. Master
Repurchase Agreement, 4.25%, dated
6/30/98 due 7/1/98, Collateralized
by U.S. Government Securities - 1,998,343 1,998,343
TOTAL INVESTMENTS - 100.1% (COST
$286,195,572) 279,047,749 98,207,349 377,255,098
OTHER ASSETS AND LIABILITIES,
NET - (0.1%) 506,420 (780,543) (274,123)
</TABLE>
<PAGE>
WM Growth Fund and Griffin Growth Fund
Pro Forma Combined Portfolio of Investments
June 30, 1998 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
TOTAL NET ASSETS - 100.0% 279,554,169 97,426,806 376,980,975
(A) Non-Income
producing security.
</TABLE>
<PAGE>
WM GROWTH FUND & GRIFFIN GROWTH FUND
Notes to Pro Forma Combined Financial Statements (Unaudited)
1. Basis of Combination
The pro forma combined financial statements reflect the pro forma combined
financial position of the WM Growth Fund and the Griffin Growth Fund at
June 30, 1998 and the pro forma combined results of operations for the year
ended June 30, 1998 as though the reorganization had occurred on July 1,
1997.
The pro forma combined financial statements are presented for the
information of the reader and may not necessarily be representative of how
the pro forma combined financial statements would have appeared had the
reorganization actually occurred.
The Pro Forma Combined Portfolio of Investments, Statement of Assets and
Liabilities, and the Statement of Operations should be read in conjunction
with the historical financial statements of the funds which are
incorporated by reference in the Statement of Additional Information.
The pro forma combined statements give effect to the proposed transfer of
the assets and stated liabilities of the Griffin Growth Fund in exchange
for shares of WM Growth Fund. Under generally accepted accounting
principles, the historical cost of investment securities will be carried
forward to the surviving entity.
The pro forma combined statements do not reflect the expenses of either
fund in carrying out its obligations under the proposed Agreement and Plan
of Reorganization.
2. Pro Forma Combined Portfolio of Investments
Securities held by the two funds have been combined in the accompanying
Combined Portfolio of Investments. Securities are valued using the pricing
procedures and policies of the respective Acquiring Fund or Acquired Fund,
as applicable. For more information, see the WM Annual Reports or the
Griffin Annual Reports. Historical cost amounts represent the combined cost
basis of the securities. A substantial portion of the Griffin Growth Fund's
portfolio securities are expected to be sold in connection with the
Merger.
3. Pro Forma Combined Statements of Assets and Liabilities
Shares outstanding have been adjusted to reflect the conversion of Griffin
Growth Fund shares into WM Growth Fund shares based upon the net asset
value of the WM Growth Fund shares at June 30, 1998.
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