<PAGE>
[GRAPHIC APPEARS HERE]
REPORT TO
SHAREHOLDERS
North American Funds Semi-Annual Report April 30, 1999
Unaudited
Financial
Statements
<PAGE>
NORTH AMERICAN FUNDS
President's Message
- --------------------------------------------------------------------------------
June 10, 1999
Dear Shareholder:
During the six-month period that ended April 30, 1999, the U.S. economy provided
a positive environment for stock investors. Economic growth continued to be
strong and interest rates and inflation remained at moderate levels. In
addition, the financial and economic problems that for more than a year had
plagued Japan and several of the emerging market economies of Asia and Latin
America appeared to have reversed course. This change in economic direction was
positive for U.S. companies, because as these foreign economies improve, they
are likely to purchase more goods and services from U.S. firms. As a result,
U.S. companies have the potential for greater revenues and profits.
Within this favorable framework, the Dow Jones Industrial Average (DJIA) reached
the 10,000 mark for the first time in history and has recently exceeded 11,000.
For the six months ended April 30, 1999, the DJIA had produced a 25.6% return
and the Standard & Poor's 500 Stock Index (S&P 500) had risen 21.5%. For most of
the period, this strong upward momentum masked the fact that the market's
breadth -- the number of stocks that had participated in the upward trend - was
relatively narrow. As had been the case for more than a year, large cap stocks -
particularly those related to technology and the Internet - were market leaders.
Smaller cap stocks trailed their large cap counterparts. For the six months
ended April 30, 1999, the return of the Russell 2000 Index, a measure of small
cap stock performance, was 15.2%.
As we moved into the second quarter of 1999, investor sentiment broadened beyond
the technology sector into cyclical stocks. Cyclical stocks tend to perform well
when economies improve and poorly when economies weaken. As global economies
recovered from recession, investors sought economically sensitive stocks in the
oil, steel, chemicals, paper and similar industries. During April, some of the
best performing stocks were cyclicals, while the valuations on many large cap
growth stocks were unchanged or declined in value.
At North American Funds one of our objectives is to provide you with the best
fund management available. To this end, we carefully select and closely monitor
our managers, continually analyzing their performance and comparing them with
their peers in each respective asset class and investment discipline. In short,
we identify and hire specialized managers who we believe can best meet the needs
of our shareholders.
Over the past few months, we have had two changes in the North American Funds
line-up. Effective April 1, 1999, Global Alliance Value Investors, Ltd. became
the manager for the Equity-Income Fund and Morgan Stanley Asset Management
became the manager of the International Equity Fund (formerly known as the
International Growth and Income Fund). We believe these manager changes have the
potential to better serve your long-term investment needs.
If you have questions regarding your investments, please call your investment
representative or our customer service team at 1- 800-872-8037. Thank you for
selecting North American Funds. We look forward to serving your investment
needs.
Sincerely,
/s/ Bradford K. Gallagher
Bradford K. Gallagher
President, North American Funds
<PAGE>
NORTH AMERICAN FUNDS
Index to Semi-Annual Report
- --------------------------------------------------------------------------------
Page
Statements of Assets and Liabilities................................ 1
Statements of Operations............................................ 7
Statements of Changes in Net Assets................................. 10
Financial Highlights................................................ 14
Portfolio of Investments
International Small Cap Fund................................... 33
International Equity Fund (formerly the International
Growth and Income Fund.................................... 34
Global Equity Fund............................................. 39
Emerging Growth Fund........................................... 40
Small/Mid Cap Fund............................................. 41
Growth Equity Fund............................................. 42
Tax-Sensitive Equity Fund...................................... 44
Growth and Income Fund......................................... 45
Equity-Income Fund............................................. 46
Balanced Fund.................................................. 47
Strategic Income Fund.......................................... 48
Investment Quality Bond Fund................................... 52
National Municipal Bond Fund................................... 56
U.S. Government Securities Fund................................ 57
Money Market Fund.............................................. 58
Notes to Financial Statements....................................... 59
ii
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited)
================================================================================
<TABLE>
<CAPTION>
International International Global Emerging Small/Mid
Small Cap Equity Equity Growth Cap
Fund Fund** Fund Fund Fund
------------- ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
- ------
Investments in securities, at value* (See
accompanying Portfolio of Investments) .... $ 17,888,775 $ 25,441,185 $118,747,490 $ 941,446 $ 52,632,679
Receivable for forward foreign currency
contracts to sell (Notes 2 and 7) ......... 51,564 5,543,031 8,243,846 -- --
Forward foreign currency contracts to buy, at
value (Cost: $4,429,535 in International
Equity) ................................... -- 4,374,690 -- -- --
Cash ........................................... 43,814 -- 71,884 88 --
Foreign currency (Cost: $89,799 in
International Small Cap, $879,155 in
International Equity and $848,867 in
Global Equity) ............................ 89,180 879,027 847,518 -- --
Unamortized organization costs ................. -- -- -- 24,132 --
Receivables:
Investments sold ....................... 51,345 -- 421,922 31,283 462,284
Fund shares sold ....................... 8,728 8,383 286 -- 92,027
Dividends .............................. 7,517 47,358 306,783 -- 442
Interest ............................... 1,130 571 4 106 3,266
Foreign tax withholding reclaims ....... 5,680 26,806 66,482 -- --
From adviser ........................... 2,893 -- 1,143 3,287 4,879
Other assets ................................... 41,174 45,462 12,932 43,446 39,276
------------ ------------ ------------ ------------ ------------
Total assets .................... 18,191,800 36,366,513 128,720,290 1,043,788 53,234,853
============ ============ ============ ============ ============
LIABILITIES:
- -----------
Forward foreign currency contracts to sell, at
value (Cost: $51,564 in International
Small Cap, $5,543,031 in International
Equity and $8,243,846 in Global Equity)
(Notes 2 and 7) ........................... 51,345 5,368,852 8,073,378 -- --
Collateral on securities loaned, at value ...... 2,854,376 65,020 12,498,705 -- 8,163,172
Payables:
Forward foreign currency contracts to
buy (Notes 2 and 7) .................. -- 4,429,535 -- -- --
Investments purchased .................. 13,985 -- 1,491,980 8,668 1,462,070
Fund shares redeemed ................... 7,584 14,508 307,706 -- 54,122
Dividend and interest withholding tax .. 743 4,939 16,286 -- --
Investment adviser ..................... 16,278 24,507 77,697 729 38,893
Custodian and transfer agent fees ...... 898 7,356 61,006 981 5,585
Distribution fee ....................... 11,459 19,545 73,996 773 32,762
Due to custodian ....................... -- 53,707 -- -- --
Other accrued expenses ................. 348 -- 45,909 -- 3,594
------------ ------------ ------------ ------------ ------------
Total liabilities ............... 2,957,016 9,987,969 22,646,663 11,151 9,760,198
------------ ------------ ------------ ------------ ------------
NET ASSETS ..................................... $ 15,234,784 $ 26,378,544 $106,073,627 $ 1,032,637 $ 43,474,655
============ ============ ============ ============ ============
NET ASSETS CONSIST OF:
- ----------------------
Undistributed net investment
income/(loss) (Note 2) ............... ($126,091) $87,156 ($76,123) ($8,166) ($336,881)
Accumulated undistributed net realized
gain (loss) on investments, foreign
currency and forward foreign currency
contracts ............................ (416,079) 1,212,134 7,624,948 (73,508) 7,016,282
Unrealized appreciation (depreciation)
on:
Investments ...................... 3,817,646 1,556,091 20,465,818 101,526 3,581,377
Foreign currency and forward foreign
currency contracts ................. (891) 118,270 169,481 -- --
Capital shares at par value of $.001
(Note 3) ........................... 952 2,336 6,434 101 2,432
Additional paid-in capital ............. 11,959,247 23,402,557 77,883,069 1,012,684 33,211,445
------------ ------------ ------------ ------------ ------------
Net assets ...................... $ 15,234,784 $ 26,378,544 $106,073,627 $ 1,032,637 $ 43,474,655
============ ============ ============ ============ ============
*Investments in securities, at identified cost
(Note 2) ....................................... $ 14,071,129 $ 23,885,094 $ 98,281,672 $ 839,920 $ 49,051,302
============ ============ ============ ============ ============
</TABLE>
** Formerly the International Growth and Income Fund
The accompanying notes are an integral part of the financial statements.
1
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) - continued
================================================================================
<TABLE>
<CAPTION>
International International Global Emerging Small/Mid
Small Cap Equity Equity Growth Cap
Fund Fund** Fund Fund Fund
--------------- --------------- --------------- --------------- ---------------
NET ASSET VALUES:
- -----------------
<S> <C> <C> <C> <C> <C>
Class A Shares
Net assets at value ......................... $ 2,244,258 $ 3,985,409 $23,047,185 $ 187,057 $ 5,593,169
Shares outstanding .......................... 137,676 350,015 1,383,805 18,163 305,979
Net asset value (NAV) and redemption price per
share ........................................ $ 16.30 $ 11.39 $ 16.65 $ 10.30 $ 18.28
===== ----- ===== ===== =====
Public offering price per share (100/95.25 of
NAV) On sales of $100,000 or more the offering
price is reduced ............................. $ 17.11 $ 11.95 $ 17.49 $ 10.81 $ 19.19
----- ----- ----- ----- -----
Class B Shares
Net assets at value ......................... $ 7,100,545 $15,269,598 $29,358,821 $ 534,987 $17,919,685
Shares outstanding .......................... 445,353 1,354,108 1,789,551 52,505 1,006,710
Net asset value, offering price and redemption
price per share .............................. $ 15.94 $ 11.28 $ 16.41 $ 10.19 $ 17.80
----- ----- ----- ----- -----
Class C Shares
Net assets at value ......................... $ 5,889,981 $ 7,123,537 $53,667,621 $ 310,593 $19,961,801
Shares outstanding .......................... 368,960 631,839 3,258,906 30,412 1,119,198
Net asset value, offering price and redemption
price per share .............................. $ 15.96 $ 11.27 $ 16.47 $ 10.21 $ 17.84
----- ----- ===== ----- -----
</TABLE>
** Formerly the International Growth and Income Fund
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) - continued
================================================================================
<TABLE>
<CAPTION>
Growth Tax-Sensitive Growth and Equity-
Equity Equity Income Income Balanced
Fund Fund Fund Fund Fund
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
- -------
Investments in securities, at value* (See
accompanying Portfolio of Investments) .... $42,506,105 $9,665,734 $313,794,825 $153,472,736 $99,596,901
Cash ............................................. 457 532 161 555 330
Foreign currency (Cost: $323 in Growth Equity,
$1,817 in Growth and Income, $2,617 in
Equity-Income, and $84,408 in Balanced) ...... 296 -- 1,612 2,640 86,534
Unamortized organization costs ................... -- 24,041 -- -- --
Receivables:
Investments sold ......................... -- 124,821 4,426,736 -- 750,250
Fund shares sold ......................... 11,419 -- 173,260 2,164 --
Dividends ................................ 13,681 4,513 321,353 268,242 105,330
Interest ................................. 230 27 917 16 555,533
Foreign tax withholding reclaims ......... 98 -- -- 150 9,347
From adviser ............................. 4,688 6,752 38,372 23,675 17,645
Other assets ..................................... 36,825 36,022 -- -- 10,267
------------- ------------- ------------- ------------- -------------
Total assets ...................... 42,573,799 9,862,442 318,757,236 153,770,178 101,132,137
============= ============= ============= ============= =============
LIABILITIES:
- ------------
Collateral on securities loaned, at value ........ 2,501,536 -- 6,184,920 -- 3,437,871
Payables:
Investments purchased .................... 14,075 146,700 5,006,136 -- 2,004,211
Fund shares redeemed ..................... 42,914 65,528 53,298 199,606 113,886
Dividend and interest withholding tax .... -- -- -- 610 6,497
Investment adviser ....................... 34,825 7,069 162,553 87,572 59,343
Custodian and transfer agent fees ........ 4,968 7,338 128,271 83,745 52,806
Distribution fee ......................... 30,124 6,982 216,824 109,666 71,054
Other accrued expenses ................... 3,004 -- 105,007 61,530 33,571
============= ============= ============= ============= =============
Total liabilities ................. 2,631,446 233,617 11,857,009 542,729 5,779,239
------------- ------------- ------------- ------------- -------------
NET ASSETS ....................................... $39,942,353 $9,628,825 $306,900,227 $153,227,449 $95,352,898
============= ============= ============= ============= =============
NET ASSETS CONSIST OF:
- ----------------------
Undistributed net investment income/(loss)
(Note 2) ............................. ($246,472) ($48,853) ($542,659) $424,326 $483,090
Accumulated undistributed net realized
gain (loss) on investments, foreign
currency and forward foreign
currency contracts ................... 3,830,836 (1,537,413) 9,551,585 8,633,606 6,335,406
Unrealized appreciation (depreciation) on:
Investments ....................... 6,218,944 758,156 123,015,634 30,762,433 2,753,655
Foreign currency and forward
foreign currency contracts ...... (29) -- (206) 20 2,348
Capital shares at par value of $.001
(Note 3) .............................. 1,996 957 10,955 8,685 8,815
Additional paid-in capital ............... 30,137,078 10,455,978 174,864,918 113,398,379 85,769,584
------------- ------------- ------------- ------------- -------------
Net assets ........................ $39,942,353 $9,628,825 $306,900,227 $153,227,449 $95,352,898
============= ============= ============= ============= =============
*Investments in securities, at identified cost
(Note 2) ......................................... $36,287,161 $8,907,578 $190,779,191 $122,710,303 $96,843,246
============= ============= ============= ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) - continued
================================================================================
<TABLE>
<CAPTION>
Growth Tax-Sensitive Growth and Equity-
Equity Equity Income Income Balanced
Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------
NET ASSET VALUES:
- -----------------
<S> <C> <C> <C> <C> <C>
Class A Shares
Net assets at value ......................... $ 5,071,360 $ 2,110,921 $ 52,833,822 $ 28,941,238 $ 14,848,305
Shares outstanding .......................... 249,007 217,233 1,867,629 1,634,046 1,380,233
Net asset value (NAV) and redemption price per $20.37 $9.72 $28.29 $17.71 $10.76
share ........................................ ====== ===== ====== ====== ======
Public offering price per share (100/95.25 of
NAV) On sales of $100,000 or more the offering
price is reduced ............................. $21.38 $10.20 $29.70 $18.59 $11.29
====== ====== ====== ====== ======
Class B Shares
Net assets at value ......................... $ 15,741,071 $ 3,944,191 $ 99,673,563 $ 37,303,637 $ 17,481,507
Shares outstanding .......................... 787,562 409,286 3,573,793 2,124,637 1,631,977
Net asset value, offering price and redemption $19.99 $9.64 $27.89 $17.56 $10.71
price per share .............................. ====== ===== ====== ====== ======
Class C Shares
Net assets at value ......................... $ 19,129,922 $ 3,573,713 $154,392,842 $ 86,982,574 $ 63,023,082
Shares outstanding .......................... 958,593 371,000 5,513,158 4,925,955 5,802,362
Net asset value, offering price and redemption $19.96 $9.63 $28.00 $17.66 $10.86
price per share .............................. ====== ===== ====== ====== ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) - continued
================================================================================
<TABLE>
<CAPTION>
Investment National U. S.
Strategic Quality Municipal Government Money
Income Bond Bond Securities Market
Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
- -------
Investments in securities, at value* (Includes
a repurchase agreement of $15,372,000
in the U. S. Government Securities Fund)
(See accompanying Portfolio of
Investments) ................................. $72,150,104 $19,582,291 $15,373,221 $87,115,035 $23,024,526
Receivable for forward foreign currency
contracts to sell (Notes 2 and 7) ............ 2,744,174 -- -- -- --
Forward foreign currency contracts to buy, at
value (Cost: $1,945,594 in Strategic
Income) ...................................... 1,900,219 -- -- -- --
Cash .............................................. 431 -- 50,297 972 1,271
Foreign currency (Cost: $64,886 in Strategic
Income) ...................................... 65,536 -- -- -- --
Receivables:
Investments sold .......................... 25,913 -- -- 70,285 --
Fund shares sold .......................... 25,000 -- -- 35,049 --
Dividends ................................. 867 -- -- -- --
Interest .................................. 1,397,417 292,008 236,414 450,363 34,279
From adviser .............................. 3,708 6,227 5,515 14,044 5,339
Other assets ...................................... 43,979 38,830 33,997 27,145 57,266
------------ ------------ ------------ ------------ ------------
Total assets ....................... 78,357,348 19,919,356 15,699,444 87,712,893 23,122,681
------------ ------------ ------------ ------------ ------------
LIABILITIES:
- ------------
Forward foreign currency contracts to sell, at
value (Cost: $2,744,174 in Strategic Income)
(Notes 2 and 7) ................................ 2,585,354 -- -- -- --
Collateral on securities loaned, at value ......... 4,299,280 2,821,919 -- -- --
Payables:
Forward foreign currency contracts to
buy (Notes 2 and 7) ................... 1,945,594 -- -- -- --
Investments purchased ..................... 864,950 81,235 -- 17,328,440 --
Fund shares redeemed ...................... 181,690 34,994 -- 84,490 --
Dividends ................................. 294,539 105,220 40,829 337,212 85,010
Dividend and interest withholding tax ..... 1,461 8 -- -- --
Investment adviser ........................ 54,942 8,473 7,774 35,081 6,504
Custodian and transfer agent fees ......... 39,652 6,375 10,980 42,086 58
Distribution fee .......................... 50,946 10,659 8,214 33,614 --
Due to custodian .......................... -- 20,667 -- -- --
Other accrued expenses .................... 21,264 60 -- 22,809 207
------------ ------------ ------------ ------------ ------------
Total liabilities .................. 10,339,672 3,089,610 67,797 17,883,732 91,779
------------ ------------ ------------ ------------ ------------
NET ASSETS ........................................ $68,017,676 $16,829,746 $15,631,647 $69,829,161 $23,030,902
============ ============ ============ ============ ============
NET ASSETS CONSIST OF:
- ----------------------
Undistributed net investment
income/(loss) (Note 2) .................. $199,420 ($6,199) ($263) ($389,248) $2,054
Accumulated undistributed net realized
gain (loss) on investments, foreign
currency and forward foreign
currency contracts ...................... (2,435,467) (244,835) (16,948) (824,933) (2,054)
Unrealized appreciation (depreciation) on:
Investments ............................. (1,618,545) (102,028) 805,947 (270,956) --
Foreign currency and forward foreign
currency contracts .................... 103,941 -- -- -- --
Capital shares at par value of $.001
(Note 3) .............................. 7,510 1,621 1,549 7,080 23,031
Additional paid-in capital ................ 71,760,817 17,181,187 14,841,362 71,307,218 23,007,871
------------ ------------ ------------ ------------ ------------
Net assets ......................... $68,017,676 $16,829,746 $15,631,647 $69,829,161 $23,030,902
============ ============ ============ ============ ============
*Investments in securities, at identified cost
(Note 2) ....................................... $73,768,649 $19,684,319 $14,567,274 $87,385,991 $23,024,526
============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) - continued
================================================================================
<TABLE>
<CAPTION>
Investment National U. S.
Strategic Quality Municipal Government Money
Income Bond Bond Securities Market
Fund Fund Fund Fund Fund
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUES:
- ----------------
Class A Shares
Net assets at value ......................... $11,443,233 $ 6,515,496 $ 5,563,013 $44,095,737 $10,281,815
Shares outstanding .......................... 1,264,846 627,580 551,439 4,469,625 10,281,103
Net asset value (NAV) and redemption price per
share ........................................ $9.05 $10.38 $10.09 $9.87 $1.00
----- ------ ------ ----- -----
Public offering price per share (100/95.25 of
NAV) On sales of $100,000 or more the offering
price is reduced ............................. $9.50 $10.90 $10.59 $10.36
----- ------ ------ ------
Class B Shares
Net assets at value ......................... $27,340,554 $ 4,652,915 $ 5,203,934 $13,353,599 $ 4,973,346
Shares outstanding .......................... 3,018,504 448,159 515,927 1,354,400 4,973,117
Net asset value, offering price and redemption
price per share .............................. $9.06 $10.38 $10.09 $9.86 $1.00
----- ------ ------ ----- -----
Class C Shares
Net assets at value ......................... $29,233,889 $ 5,661,335 $ 4,864,700 $12,379,825 $ 7,775,741
Shares outstanding .......................... 3,227,413 545,399 482,293 1,255,660 7,775,137
Net asset value, offering price and redemption
price per share .............................. $9.06 $10.38 $10.09 $9.86 $1.00
----- ------ ------ ----- -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF OPERATIONS - FOR THE SIX MONTHS ENDED APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International International Global Emerging Small/Mid
Small Cap Equity Equity Growth Cap
Fund Fund* Fund Fund Fund
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- ------------------
Interest ................................... $34,056 $22,009 $67,032 $1,307 $70,961
Dividends (Net of $2,900, $22,460 and
$47,396 withholding tax in the
International Small Cap, International
Equity and Global Equity Funds,
respectively) ............................ 29,126 199,516 936,794 455 41,540
------------- ------------- ------------- ------------- -------------
Total income ........................ 63,182 221,525 1,003,826 1,762 112,501
------------- ------------- ------------- ------------- -------------
EXPENSES:
- ---------
Distribution for Class A ................... 3,840 6,836 53,151 349 9,708
Distribution for Class B ................... 35,667 72,626 149,195 2,180 81,049
Distribution for Class C ................... 30,314 37,660 279,110 1,320 92,153
Investment adviser fee (Note 5) ............ 80,799 116,838 522,149 4,273 185,869
Custodian fee .............................. 17,852 17,852 73,068 17,852 17,852
Transfer agent fee ......................... 12,990 21,816 99,195 717 32,649
Accounting/administration .................. 11,340 19,119 86,928 627 28,711
Audit and legal fees ....................... 3,229 5,439 24,712 181 8,218
Amortization of organization costs ......... -- -- -- 3,291 --
Miscellaneous .............................. 6,230 11,042 55,981 536 14,619
------------- ------------- ------------- ------------- -------------
Expenses before reimbursement by
investment adviser ....................... 202,261 309,228 1,343,489 31,326 470,828
Reimbursement of expenses by investment
adviser (Note 5) ......................... 12,988 9,462 36,940 21,397 21,446
------------- ------------- ------------- ------------- -------------
Net expenses ................ 189,273 299,766 1,306,549 9,929 449,382
------------- ------------- ------------- ------------- -------------
Net investment income/(loss) (126,091) (78,241) (302,723) (8,167) (336,881)
------------- ------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
- -------------------------------------------
AND FOREIGN CURRENCY:
---------------------
Net realized gain (loss) on:
Investment transactions ................. 257,457 1,510,575 7,856,946 (34,356) 7,195,849
Foreign currency and forward foreign
currency contracts .................... (10,377) (39,298) (236,615) -- --
Change in unrealized appreciation
(depreciation) on:
Investments ............................. 2,278,788 2,189,932 1,629,904 162,773 1,381,520
Translation of foreign currency and
forward foreign currency contracts .... (1,028) 283,156 389,957 -- --
------------- ------------- ------------- ------------- -------------
Net gain on investments
and foreign currency....... 2,524,840 3,944,365 9,640,192 128,417 8,577,369
------------- ------------- ------------- ------------- -------------
Net increase in net assets resulting from
operations .................................... $2,398,749 $3,866,124 $9,337,469 $120,250 $8,240,488
============= ============= ============= ============= =============
</TABLE>
* Formerly the International Growth and Income Fund
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF OPERATIONS - FOR THE SIX MONTHS ENDED APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth Tax-Sensitive Growth and Equity-
Equity Equity Income Income Balanced
Fund Fund Fund Fund Fund
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- -----------------
Interest .................................... $ 39,967 $ 5,127 $ 102,802 139,862 $ 1,202,470
Dividends (Net of $462, $520, $2,550,
$11,266 and $11,790 withholding tax
in the Growth Equity, Tax-Sensitive Equity,
Growth and Income, Equity-Income and
Balanced Funds, respectively) ............. 92,598 57,428 1,911,608 2,233,090 435,696
------------ ------------ ------------ ------------ ------------
Total income ......................... 132,565 62,555 2,014,410 2,372,952 1,638,166
------------ ------------ ------------ ------------ ------------
EXPENSES:
- --------
Distribution for Class A .................... 8,050 7,186 83,623 61,691 25,462
Distribution for Class B .................... 68,950 17,393 436,102 191,044 92,245
Distribution for Class C .................... 79,323 16,870 687,883 459,490 321,263
Investment adviser fee (Note 5) ............. 154,146 46,574 913,805 597,269 364,934
Custodian fee ............................... 17,852 17,852 65,277 43,832 30,121
Transfer agent fee .......................... 27,472 9,139 222,047 140,996 82,039
Accounting/administration ................... 24,299 7,982 195,553 123,327 71,684
Audit and legal fees ........................ 6,973 2,272 55,982 35,006 20,396
Amortization of organization costs .......... -- 3,278 -- -- --
Miscellaneous ............................... 12,370 5,726 97,317 62,034 36,237
============ ============ ============ ============ ============
Expenses before reimbursement by
investment adviser......................... 399,435 134,272 2,757,589 1,714,689 1,044,381
Reimbursement of expenses by investment
adviser (Note 5)........................... 20,399 22,863 200,520 126,489 99,145
------------ ------------ ------------ ------------ ------------
Net expenses ................. 379,036 111,409 2,557,069 1,588,200 945,236
------------ ------------ ------------ ------------ ------------
Net investment income/(loss) . (246,471) (48,854) (542,659) 784,752 692,930
------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
- -------------------------------------------
AND FOREIGN CURRENCY:
--------------------
Net realized gain (loss) on:
Investment transactions .................. 3,829,418 (782,448) 9,913,382 8,846,901 6,794,018
Foreign currency and forward foreign
currency contracts ..................... (2,550) -- -- (11,953) (40,845)
Change in unrealized appreciation
(depreciation) on:
Investments .............................. 2,762,281 1,541,034 41,400,777 3,678,300 (4,739,367)
Translation of foreign currency and
forward foreign currency contracts ..... (34) -- (41) 121 1,561
------------ ------------ ------------ ------------ ------------
Net gain on investments
and foreign currency ....... 6,589,115 758,586 51,314,118 12,513,369 2,015,367
============ ============ ============ ============ ============
Net increase in net assets resulting from
operations ..................................... $ 6,342,644 $ 709,732 $ 50,771,459 $ 13,298,121 $ 2,708,297
============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF OPERATIONS - FOR THE SIX MONTHS ENDED APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Investment National U. S.
Strategic Quality Municipal Government Money
Income Bond Bond Securities Market
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- ------------------
Interest (Net of $6,502 withholding tax in the
Strategic Income Funds) .............................. $3,500,168 $643,875 $428,583 $2,484,855 $547,672
Dividends ............................................... -- 2,031 -- -- --
----------- ----------- ----------- ----------- -----------
Total income ..................................... 3,500,168 645,906 428,583 2,484,855 547,672
----------- ----------- ----------- ----------- -----------
EXPENSES:
- ---------
Distribution for Class A ................................ 24,156 11,445 4,394 83,006 --
Distribution for Class B ................................ 146,777 24,510 26,098 70,282 --
Distribution for Class C ................................ 158,554 28,758 24,520 62,382 --
Investment adviser fee (Note 5) ......................... 274,441 51,542 47,380 221,895 22,450
Custodian fee ........................................... 49,277 17,852 17,852 23,833 17,852
Transfer agent fee ...................................... 64,035 14,454 13,411 63,232 19,320
Accounting/administration ............................... 55,715 12,628 11,674 55,063 16,534
Audit and legal fees .................................... 15,801 3,601 3,322 15,641 4,707
Miscellaneous ........................................... 27,653 6,450 5,786 27,292 8,349
----------- ----------- ----------- ----------- -----------
Expenses before reimbursement by investment adviser ..... 816,409 171,240 154,437 622,626 89,212
Reimbursement of expenses by investment adviser
(Note 5) .............................................. 56,376 29,218 32,393 75,037 33,087
----------- ----------- ----------- ----------- -----------
Net expenses ............................... 760,033 142,022 122,044 547,589 56,125
----------- ----------- ----------- ----------- -----------
Net investment income ...................... 2,740,135 503,884 306,539 1,937,266 491,547
----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
- -------------------------------------------
AND FOREIGN CURRENCY:
---------------------
Net realized gain (loss) on:
Investment transactions .............................. (1,500,859) 125,329 7,209 237,823 804
Foreign currency and forward foreign currency
contracts .......................................... (240,622) -- -- -- --
Change in unrealized appreciation (depreciation) on:
Investments .......................................... 2,084,162 (522,466) (218,249) (1,651,375) --
Translation of foreign currency and
forward foreign currency contracts ................. 363,658 -- -- -- --
----------- ----------- ----------- ----------- -----------
Net gain on investments and foreign currency ... 706,339 (397,137) (211,040) (1,413,552) 804
----------- ----------- ----------- ----------- -----------
Net increase in net assets resulting from operations ......... $3,446,474 $106,747 $95,499 $523,714 $492,351
=========== =========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity
Fund (formerly the
International International Growth
Small Cap Fund and Income Fund) Global Equity Fund
------------------------------ ------------------------------ ---------------------------
Six Six Six
Months Months Months
Ended Year Ended Year Ended Year
4/30/99 Ended 4/30/99 Ended 4/30/99 Ended
(Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98
-------------- -------------- -------------- -------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ........ ($126,091) ($118,410) ($78,241) ($25,047) ($302,723) ($509,955)
Net realized gain (loss) on:
Investment transactions .......... 257,457 (75,711) 1,510,575 33,515 7,856,946 9,400,371
Foreign currency and
forward foreign currency
contracts ...................... (10,377) (22,378) (39,298) 129,326 (236,615) 845,669
Change in unrealized
appreciation (depreciation) on:
Investments ...................... 2,278,788 236,882 2,189,932 405,513 1,629,904 975,938
Foreign currency and forward
foreign currency contracts .... (1,028) 3,020 283,156 (374,342) 389,957 (700,564)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net
assets resulting from operations .... 2,398,749 23,403 3,866,124 168,965 9,337,469 10,011,459
DISTRIBUTIONS FROM :
- --------------------
Net investment income
Class A ...................... -- -- -- (32,570) -- (417,000)
Class B ...................... -- -- -- (49,275) -- (215,336)
Class C ...................... -- -- -- (25,937) -- (405,867)
Net realized gains on investments
and foreign currency transactions
Class A ...................... -- -- (12,093) (387,315) (2,303,340) (1,961,256)
Class B ...................... -- -- (44,314) (1,343,452) (2,219,820) (2,005,883)
Class C ...................... -- -- (25,387) (715,494) (4,228,655) (3,781,969)
In excess of net investment income
Class A ...................... -- -- -- (21,898) -- --
Class B ...................... -- -- -- (33,130) -- --
Class C ...................... -- -- -- (17,438) -- --
Increase (decrease) in net assets from
capital share transactions (Note 3) . (2,617,494) (2,188,345) (3,164,876) (1,038,721) (13,628,223) (6,146,407)
------------- ------------- ------------- ------------- ------------- -------------
Increase (decrease) in net assets .... (218,745) (2,164,942) 619,454 (3,496,265) (13,042,569) (4,922,259)
Net assets at beginning of period .... 15,453,529 17,618,471 25,759,090 29,255,355 119,116,196 124,038,455
------------- ------------- ------------- ------------- ------------- -------------
Net assets at end of period .......... $ 15,234,784 $ 15,453,529 26,378,544 25,759,090 $ 106,073,627 $ 119,116,196
============= ============= ============= ============= ============= =============
Undistributed net investment
income (loss) ....................... ($ 126,091) -- $ 87,156 $ 165,398 ($ 76,123) $ 226,601
------------- ------------- ------------- ------------- ------------- -------------
<CAPTION>
Emerging Growth Fund
-------------------------------
Six
Months
Ended 01/06/98*
4/30/99 to
(Unaudited) 10/31/98
---------------- -------------
<S> <C> <C>
OPERATIONS:
- -----------
Net investment income (loss) ........ ($8,167) ($4,740)
Net realized gain (loss) on:
Investment transactions .......... (34,356) (39,152)
Foreign currency and
forward foreign currency
contracts ...................... -- --
Change in unrealized
appreciation (depreciation) on:
Investments ...................... 162,773 (61,247)
Foreign currency and forward
foreign currency contracts .... -- --
----------- -----------
Net increase (decrease) in net
assets resulting from operations .... $ 120,250 ($ 105,139)
DISTRIBUTIONS FROM :
- --------------------
Net investment income
Class A ...................... -- --
Class B ...................... -- --
Class C ...................... -- --
Net realized gains on investments
and foreign currency transactions
Class A ...................... -- --
Class B ...................... -- --
Class C ...................... -- --
In excess of net investment income
Class A ...................... -- --
Class B ...................... -- --
Class C ...................... -- --
Increase (decrease) in net assets from
capital share transactions (Note 3) . 265,203 752,323
----------- -----------
Increase (decrease) in net assets .... 385,453 647,184
Net assets at beginning of period .... 647,184 0
----------- -----------
Net assets at end of period .......... $ 1,032,637 $ 647,184
=========== ===========
Undistributed net investment
income (loss) ....................... ($ 8,166) --
----------- -----------
</TABLE>
- ---------------------------------
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax-Sensitive
Small/Mid Cap Fund Growth Equity Fund Equity Fund
--------------------------- --------------------------- ---------------------------
Six Six Six
Months Months Months
Ended Year Ended Year Ended 01/06/98*
4/30/99 Ended 4/30/99 Ended 4/30/99 to
(Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
- -----------
Net investment income (loss) .......... ($336,881) ($494,630) ($246,471) ($278,985) ($48,854) ($23,575)
Net realized gain (loss) on:
Investment transactions .............. 7,195,849 3,617,101 3,829,418 2,221,648 (782,448) (754,965)
Foreign currency and forward
foreign currency contracts .......... -- -- (2,550) 679 -- --
Change in unrealized appreciation
(depreciation) on:
Investments ........................ 1,381,520 (1,868,388) 2,762,281 1,275,786 1,541,034 (782,878)
Foreign currency and forward foreign
currency contracts ................ -- -- (34) (269) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations ............. 8,240,488 1,254,083 6,342,644 3,218,859 709,732 (1,561,418)
DISTRIBUTIONS FROM :
- --------------------
Net realized gains on investments and
foreign currency transactions
Class A ........................ (460,517) (73,545) (265,199) (262,983) -- --
Class B ........................ (1,326,329) (196,356) (781,780) (812,961) -- --
Class C ........................ (1,510,893) (216,341) (851,543) (1,091,675) -- --
In excess of net investment income
Class A ........................ -- -- -- -- -- --
Class B ........................ -- -- -- -- -- --
Class C ........................ -- -- -- -- -- --
Increase (decrease) in net assets from
capital share transactions (Note 3) .. 3,524,286 4,796,743 6,954,869 2,632,785 (1,415,281) 11,895,792
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in net
assets ............................... 8,467,035 5,564,584 11,398,991 3,684,025 (705,549) 10,334,374
Net assets at beginning of
period ................................. 35,007,620 29,443,036 28,543,362 24,859,337 10,334,374 --
------------ ------------ ------------ ------------ ------------ ------------
Net assets at end of
period ................................. $ 43,474,655 $ 35,007,620 $ 39,942,353 $ 28,543,362 $ 9,628,825 $ 10,334,374
============ ============ ============ ============ ============ ============
Undistributed net investment
income (loss) .......................... ($ 336,881) ($ 494,630) ($ 246,472) ($ 191,333) ($ 48,853) --
------------ ------------ ------------ ------------ ------------ ------------
<CAPTION>
Growth and Income Fund
--------------------------------
Six
Months
Ended Year
4/30/99 Ended
(Unaudited) 10/31/98
------------- -------------
<S> <C> <C>
OPERATIONS:
- -----------
Net investment income (loss) .......... ($542,659) ($433,878)
Net realized gain (loss) on:
Investment transactions .............. 9,913,382 9,720,012
Foreign currency and forward
foreign currency contracts .......... -- --
Change in unrealized appreciation
(depreciation) on:
Investments ........................ 41,400,777 28,812,377
Foreign currency and forward foreign
currency contracts ................ (41) 53
------------- -------------
Net increase (decrease) in net assets
resulting from operations ............. 50,771,459 38,098,564
DISTRIBUTIONS FROM :
- --------------------
Net realized gains on investments and
foreign currency transactions
Class A ........................ (1,712,913) (2,741,357)
Class B ........................ (3,082,778) (4,507,021)
Class C ........................ (4,840,383) (7,696,358)
In excess of net investment income
Class A ........................ -- (45,238)
Class B ........................ -- --
Class C ........................ -- --
Increase (decrease) in net assets from
capital share transactions (Note 3) .. 24,880,725 30,468,074
------------- -------------
Increase (decrease) in net
assets ............................... 66,016,110 53,576,664
Net assets at beginning of
period ................................. 240,884,117 187,307,453
------------- -------------
Net assets at end of
period ................................. $ 306,900,227 $ 240,884,117
============= =============
Undistributed net investment
income (loss) .......................... ($ 542,659) --
------------- -------------
</TABLE>
- ---------------------------------
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Equity-Income Fund Balanced Fund Strategic Income Fund
----------------------------- ----------------------------- -----------------------------
Six Six Six
Months Months Months
Ended Year Ended Year Ended Year
4/30/99 Ended 4/30/99 Ended 4/30/99 Ended
(Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
- -----------
Net investment income (loss) ..... $784,752 $1,911,306 $692,930 $1,548,319 $2,740,135 $5,297,511
Net realized gain (loss) on:
Investment transactions ......... 8,846,901 11,356,830 6,794,018 6,740,853 (1,500,859) (114,474)
Foreign currency and forward
foreign currency contracts ..... (11,953) (959) (40,845) (76,080) (240,622) 174,226
Change in unrealized appreciation
(depreciation) on:
Investments ................... 3,678,300 3,232,000 (4,739,367) 2,811,660 2,308,005 (5,320,040)
Foreign currency and forward
foreign currency contracts ... 121 (788) 1,561 693 363,658 (218,242)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net
assets resulting from
operations ...................... 13,298,121 16,498,389 2,708,297 11,025,445 3,670,317 (181,019)
DISTRIBUTIONS FROM :
- --------------------
Net investment income
Class A ................... (602,776) (701,503) (284,543) (317,345) (540,391) (1,142,439)
Class B ................... (372,141) (442,368) (243,851) (320,086) (1,055,546) (2,118,644)
Class C ................... (917,992) (1,133,438) (834,503) (1,278,949) (1,140,956) (2,258,371)
Net realized gains on investments
and foreign currency transactions
Class A ................... (2,331,204) (2,593,550) (1,061,187) (2,023,888) (93,964) (219,321)
Class B ................... (2,468,438) (2,589,634) (1,381,136) (2,767,331) (188,949) (478,774)
Class C ................... (6,050,850) (6,612,227) (4,691,171) (11,012,231) (202,495) (472,034)
Increase (decrease) in net assets
from capital share transactions
(Note 3) ......................... (18,928,826) 2,002,286 2,748,334 7,392,323 (10,473,844) 1,717,355
------------- ------------- ------------- ------------- ------------- -------------
Increase (decrease) in net
assets ........................... (18,374,106) 4,427,955 (3,039,760) 697,938 (10,025,828) (5,153,247)
Net assets at beginning of
period ........................... 171,601,558 167,173,603 98,392,658 97,694,720 78,043,504 83,196,751
------------- ------------- ------------- ------------- ------------- -------------
Net assets at end of
period ........................... $153,227,452 $171,601,558 $95,352,898 $98,392,658 $68,017,676 $78,043,504
============= ============= ============= ============= ============= =============
Undistributed net investment
income (loss) .................... $424,326 $1,532,483 $483,090 $1,153,058 $199,420 $196,179
------------- ------------- ------------- ------------- ------------- -------------
<CAPTION>
Investment Quality
Bond Fund
------------------------------
Six
Months
Ended Year
4/30/99 Ended
(Unaudited) 10/31/98
------------ ------------
<S> <C> <C>
OPERATIONS:
- -----------
Net investment income (loss) ....... $503,884 $1,040,983
Net realized gain (loss) on:
Investment transactions ........... 125,329 161,325
Foreign currency and forward
foreign currency contracts ....... -- --
Change in unrealized appreciation
(depreciation) on:
Investments ..................... (522,466) 12,137
Foreign currency and forward
foreign currency contracts ..... -- --
------------ ------------
Net increase (decrease) in net
assets resulting from
operations ......................... 106,747 1,214,445
DISTRIBUTIONS FROM :
- --------------------
Net investment income
Class A ..................... (210,050) (446,629)
Class B ..................... (143,468) (276,805)
Class C ..................... (168,202) (312,476)
Net realized gains on investments
and foreign currency transactions .
Class A ..................... -- --
Class B ..................... -- --
Class C ..................... -- --
Increase (decrease) in net assets
from capital share transactions
(Note 3) .......................... 138,489 (903,890)
------------ ------------
Increase (decrease) in net
assets ............................. (276,484) (725,355)
Net assets at beginning of
period ............................. 17,106,230 17,831,585
------------ ------------
Net assets at end of
period ............................. $16,829,746 $17,106,230
============ ============
Undistributed net investment
income (loss) ...................... ($6,199) $11,637
------------ ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
National Municipal U. S. Government
Bond Fund Securities Fund Money Market Fund
------------------------ ---------------------- -----------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
4/30/99 Ended 4/30/99 Ended 4/30/99 Ended
(Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98
----------- -------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
- -----------
Net investment income (loss) ...... $306,539 $691,317 $1,937,266 $4,323,483 $491,547 $975,269
Net realized gain (loss) on:
Investment transactions ........... 7,209 190,227 237,823 591,717 804 --
Change in unrealized
appreciation
(depreciation) on:
Investments ..................... (218,249) 50,547 (1,651,375) 621,573 -- --
------------ ----------- ------------- ----------- ------------ ------------
Net increase (decrease) in net
assets resulting from
operations .......................... 95,499 932,091 523,714 5,536,773 492,351 975,269
DISTRIBUTIONS FROM :
- --------------------
Net investment income
Class A ...................... (125,473) (277,166) (1,395,536) (2,632,290) (209,503) (452,709)
Class B ...................... (93,350) (215,659) (375,622) (735,957) (111,905) (164,474)
Class C ...................... (87,717) (198,492) (326,105) (614,899) (170,943) (358,086)
In excess of net investment income
Class A ...................... -- -- -- (314,160) -- --
Class B ...................... -- -- -- (87,836) -- --
Class C ...................... -- -- -- (73,388) -- --
Increase (decrease) in net assets from
capital share transactions (Note 3) . (397,042) (2,184,716) (8,779,671) (5,506,261) (1,420,310) 2,523,350
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in net
assets ............................... (608,083) (1,943,942) (10,353,220) (4,428,018) (1,420,310) 2,523,350
Net assets at beginning of
period ............................... 16,239,730 18,183,672 80,182,381 84,610,399 24,451,212 21,927,862
------------ ------------ ------------ ------------ ------------ ------------
Net assets at end of
period ............................... $15,631,647 $16,239,730 $69,829,161 $80,182,381 $23,030,902 $24,451,212
============ ============ ============ ============ ============ ============
Undistributed net investment
income (loss) ........................ ($263) ($263) ($389,248) ($229,251) $2,054 $2,858
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Small Cap Fund
--------------------------------------------------------
Class A
--------------------------------------------------------
Six Months
Ended Year Year 3/04/96*
4/30/99 ** Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $13.91 $13.86 $13.43 $12.50
- --------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.08) (0.02) (0.03) 0.05
Net realized and unrealized gain/(loss) on
investments and foreign currency 2.47 0.07 0.46 0.88
---------------------------------------------------------
Total from investment operations 2.39 0.05 0.43 0.93
- --------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $16.30 $13.91 $13.86 $13.43
- --------------------------------------------------------------------------------------------------------------
Total Return 17.18%+ 0.36% 3.20% 7.44%+
==============================================================================================================
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $2,244 $2,173 $3,225 $2,120
- --------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average net assets 1.90%# 1.90% 1.90% 1.90%#
- --------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets (1.08%)# (0.12%) (0.19%) (0.50%)#
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 23%+ 54% 75% 67%#
- --------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.07%# 2.23% 2.46% 3.07%#
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
International Small Cap Fund
--------------------------------------------------------
Class B
--------------------------------------------------------
Six Months
Ended Year Year 3/04/96*
4/30/99 ** Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $13.66 $13.71 $13.37 $12.50
- --------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.13) (0.12) (0.11) (0.01)
Net realized and unrealized gain/(loss) on
investments and foreign currency 2.41 0.07 0.45 0.88
---------------------------------------------------------
Total from investment operations 2.28 (0.05) 0.34 0.87
- --------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $15.94 $13.66 $13.71 $13.37
- --------------------------------------------------------------------------------------------------------------
Total Return 16.95%+ (0.36%) 2.54% 6.96%+
==============================================================================================================
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $7,101 $7,073 $7,369 $5,068
- --------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average net assets 2.55%# 2.55% 2.55% 2.55%#
- --------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets (1.73)# (0.79%) (0.84%) (0.15%)#
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 23%+ 54% 75% 67%#
- --------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.72%# 2.88% 2.98% 3.27%#
- --------------------------------------------------------------------------------------------------------------
==============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
International Small Cap Fund
--------------------------------------------------------
Class C
--------------------------------------------------------
Six Months
Ended Year Year 3/04/96*
4/30/99 ** Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $13.66 $13.71 $13.37 $12.50
- --------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.13) (0.12) (0.11) (0.01)
Net realized and unrealized gain/(loss) on
investments and foreign currency 2.43 0.07 0.45 0.88
---------------------------------------------------------
Total from investment operations 2.30 (0.05) 0.34 0.87
- --------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $15.96 $13.66 $13.71 $13.37
- --------------------------------------------------------------------------------------------------------------
Total Return 16.84%+ (0.36%) 2.54% 6.96%+
==============================================================================================================
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $5,890 $6,195 $7,025 $5,517
- --------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average net assets 2.55%# 2.55% 2.55% 2.55%#
- --------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets (1.73)# (0.78%) (0.84%) (0.15%)#
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 23%+ 54% 75% 67%#
- ---------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.72%# 2.88% 2.96% 3.25%#
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Net investment income per share has been calculated using the average share
method
# Annualized
+ Non-annualized
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
International Equity Fund
(formerly the International Growth and Income Fund)
-------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------
Six
Months
Ended Year Year Year 1/09/95*
4/30/99** Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.83 $10.81 $11.35 $10.11 $10.00
- ------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.00 0.03 0.06 0.09 0.06
Net realized and unrealized
gain/(loss) on investments and
foreign currency 1.59 0.02 0.35 1.33 0.08
-------------------------------------------------------------------------
Total from investment
operations 1.59 0.05 0.41 1.42 0.14
-------------------------------------------------------------------------
Distributions
Dividends from net investment income ------ (0.13) (0.19) (0.08) (0.03)
Distributions from realized capital
gains (0.03) (0.90) (0.76) (0.10) ------
-------------------------------------------------------------------------
Total distributions (0.03) (1.03) (0.95) (0.18) (0.03)
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $11.39 $9.83 $10.81 $11.35 $10.11
- ------------------------------------------------------------------------------------------------------------------------
Total Return 16.22% + 0.67% 3.55% 14.25% 1.37% +
========================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $3,985 $3,769 $4,461 $4,732 $6,897
- ------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.75% # 1.75% 1.75% 1.75% 1.75% #
- ------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (0.05) # 0.44% 0.97% 0.84% 0.70% #
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 105% + 173% 146% 170% 69%
- ------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 1.83% # 1.87% 1.96% 1.97% 2.18% #
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
International Equity Fund
(formerly the International Growth and Income Fund)
-------------------------------------------------------------------------
Class B
-------------------------------------------------------------------------
Six
Months
Ended Year Year Year 1/09/95*
4/30/99** Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97** 10/31/96** 10/31/95
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.77 $10.75 $11.30 $10.10 $10.00
- ------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.03) (0.02) 0.03 0.06 0.01
Net realized and unrealized
gain/(loss) on investments and
foreign currency 1.57 0.00 0.31 1.30 0.12
-------------------------------------------------------------------------
Total from investment
operations 1.54 (0.02) 0.34 1.36 0.13
-------------------------------------------------------------------------
Distributions
Dividends from net investment income ------ (0.06) (0.13) (0.05) (0.03)
Distributions from realized capital
gains (0.03) (0.90) (0.76) (0.11) ------
-------------------------------------------------------------------------
Total distributions (0.03) (0.96) (0.89) (0.16) (0.03)
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $11.28 $9.77 $10.75 $11.30 $10.10
- ------------------------------------------------------------------------------------------------------------------------
Total Return 15.81% + (0.03%) 2.92% 13.58% 1.28% +
========================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $15,270 $14,030 $16,334 $15,217 $8,421
- ------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.40% # 2.40% 2.40% 2.40% 2.40% #
- ------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (0.68%) # (0.18%) 0.32% 0.57% 0.15% #
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 105% + 173% 146% 170% 69%
- ------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.48% # 2.52% 2.54% 2.60% 2.93% #
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
# Annualized
+ Non-annualized
** Net investment income per share has been calculated using the average share
method
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Fund
(formerly the International Growth and Income Fund)
----------------------------------------------------------------------------------
Class C
----------------------------------------------------------------------------------
Six
Months
Ended Year Year Year 1/09/95*
4/30/99** Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97** 10/31/96** 10/31/95
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.77 $10.76 $11.31 $10.10 $10.00
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.03) (0.02) 0.03 0.06 0.01
Net realized and unrealized
gain/(loss) on investments and
foreign currency 1.56 (0.01) 0.31 1.30 0.12
--------------------------------------------------------------------------
Total from investment
operations 1.53 (0.03) 0.34 1.36 0.13
--------------------------------------------------------------------------
Distributions
Dividends from net investment income -- (0.06) (0.13) (0.05) (0.03)
Distributions from realized capital gains (0.03) (0.90) (0.76) (0.10) --
--------------------------------------------------------------------------
Total distributions (0.03) (0.96) (0.89) (0.15) (0.03)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $11.27 $9.77 $10.76 $11.31 $10.10
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return 15.71%+ (0.13%) 2.91% 13.63% 1.28%+
==================================================================================================================================
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $7,124 $7,960 $8,460 $9,076 $6,324
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.40%# 2.40% 2.40% 2.40% 2.40%#
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (0.%)# (0.19%) 0.32% 0.51% 0.13%#
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 105%+ 173% 146% 170% 69%
- ----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense reimbursement
by advisor 2.48%# 2.52% 2.57% 2.60% 2.93%#
- ----------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Global Equity Fund
----------------------------------------------------------------------------------
Class A
----------------------------------------------------------------------------------
Six
Months
Ended Year Year Year 1/09/95* 4/01/94*
4/30/99** Ended Ended Ended to to
(Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $16.43 $16.32 $14.50 $13.84 $14.82 $14.13
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) -- 0.02 0.06 (0.04) -- (0.01)
Net realized and unrealized
gain/(loss) on investments and
foreign currency 1.43 1.34 3.45 0.91 (0.54) 0.70
-----------------------------------------------------------------------------------
Total from investment
operations 1.43 1.36 3.51 0.87 (0.54) 0.69
-----------------------------------------------------------------------------------
Distributions
Dividends from net investment income -- (0.22) (0.05) (0.21) -- --
Distributions from realized capital gains (1.21) (1.03) (1.64) -- (0.44) --
-----------------------------------------------------------------------------------
Total distributions (1.21) (1.25) (1.69) (0.21) (0.44) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $16.65 $16.43 $16.32 $14.50 $13.84 $14.82
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 9.07%+ 8.90% 26.10% 6.33% (3.52%) 9.16%@
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $23,047 $31,055 $30,960 $25,924 $23,894 $18,152
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.75%# 1.75% 1.75% 1.75% 1.75% 1.75%#
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 0.00%# 0.09% 0.33% (0.30%) 0.03% (0.12%)#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 17%+ 20% 28% 165% 57% 54%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense reimbursement
by advisor 1.83%# 1.75% 1.81% 1.83% 1.92% 1.97%#
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
# Annualized
+ Non-annualized
** Net investment income per share has been calculated using the average
share method
@ Historical Total Return is the one-year performance return which
includes Class C performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Equity Fund
----------------------------------------------------------------------------------------
Class B
----------------------------------------------------------------------------------------
Six
Months
Ended
4/30/99 Year Year Year Year 4/01/94*
** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97** 10/31/96** 10/31/95** 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $16.24 $16.14 $14.36 $13.73 $14.79 $14.13
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.06) (0.11) (0.05) (0.14) (0.09) (0.03)
Net realized and unrealized
gain/(loss) on investments
and foreign currency 1.44 1.35 3.47 0.91 (0.53) 0.69
----------------------------------------------------------------------------------------
Total from investment
operations 1.38 1.24 3.42 0.77 (0.62) 0.66
----------------------------------------------------------------------------------------
Distributions
Dividends from net investment income -- (0.11) (0.14) -- --
Distributions from realized capital
gains (1.21) (1.03) (1.64) -- (0.44) --
----------------------------------------------------------------------------------------
Total distributions (1.21) (1.14) (1.64) (0.14) (0.44) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $16.41 $16.24 $16.14 $14.36 $13.73 $14.79
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 8.85%+ 8.17% 25.63% 5.64% (4.09%) 8.94%@
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $29,359 $30,287 $31,833 $25,661 $23,317 $13,903
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.40%# 2.40% 2.40% 2.40% 2.40% 2.40%#
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (0.70%)# (0.55%) (0.32%) (0.95%) (0.61%) (0.77%)#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 17%+ 20% 28% 165% 57% 54%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.49%# 2.40% 2.47% 2.48% 2.58% 2.71%#
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Global Equity Fund
----------------------------------------------------------------------------------------
Class C
----------------------------------------------------------------------------------------
Six
Months
Ended
4/30/99 Year Year Year Year 4/01/94*
** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97** 10/31/96** 10/31/95** 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $16.30 $16.19 $14.41 $13.73 $14.79 $13.74
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.06) (0.10) (0.05) (0.14) (0.09) (0.10)
Net realized and unrealized
gain/(loss) on investments
and foreign currency 1.44 1.35 3.47 0.92 (0.53) 1.15
----------------------------------------------------------------------------------------
Total from investment
operations 1.38 1.25 3.42 0.78 (0.62) 1.05
----------------------------------------------------------------------------------------
Distributions
Dividends from net investment income -- (0.11) -- (0.10) -- --
Distributions from realized capital
gains (1.21) (1.03) (1.64) -- (0.44) --
----------------------------------------------------------------------------------------
Total distributions (1.21) (1.14) (1.64) (0.10) (0.44) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $16.47 $16.30 $16.19 $14.41 $13.73 $14.79
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 8.82%+ 8.21% 25.54% 5.70% (4.09%) 8.94%
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $53,668 $57,774 $61,245 $64,830 $83,340 $101,443
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.40%# 2.40% 2.40% 2.40% 2.40% 2.40%#
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (0.71%)# (0.56%) (0.32%) (0.95%) (0.64%) (0.91%)#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 17%+ 20% 28% 165% 57% 54%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.49%# 2.40% 2.46% 2.48% 2.53% 2.52%#
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
# Annualized
+ Non-annualized
** Net investment income per share has been calculated using the average share
method
@ Historical Total Return is the one-year performance return which includes
Class C performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Growth Fund
---------------------------------------------------------------------------------------
Class A Class B Class C
----------------------- ------------------------- -----------------------
Six Six Six
Months Months Months
Ended Ended Ended
4/30/99 1/06/98* 4/30/99 1/06/98* 4/30/99 1/06/98*
** to ** to ** to
(Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $8.88 $10.00 $8.83 $10.00 $8.84 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.06) (0.08) (0.09) (0.12)** (0.09) (0.12)**
Net realized and unrealized
gain/(loss) on investments and
foreign currency 1.48 (1.04) 1.45 (1.05) 1.46 (1.04)
-------------------------------------------------------------------------------------------
Total from investment
operations 1.42 (1.12) 1.36 (1.17) 1.37 (1.16)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.30 $8.88 $10.19 $8.83 $10.21 $8.84
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 15.99%+ (11.20%)+ 15.40%+ (11.70%)+ 15.50%+ (11.60%)+
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's) $187 $146 $535 $263 $310 $238
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.70%# 1.70%# 2.35% 2.35%# 2.35% 2.35%#
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (1.31%)# (1.00%)# (1.95%) (1.76%)# (1.96%) (1.67%)#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 73%+ 52%+ 73% 52%+ 73% 52%+
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 6.75%# 15.48%# 7.27% 16.48%# 7.31% 15.78%#
- ------------------------------------------------------------------------------------------------------------------------------------
===================================================================================================================================
</TABLE>
<TABLE>
Small/Mid Cap Fund
-----------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------- ------------------------------------------
Six Six
Months Months
Ended Ended
4/30/99 Year Year 3/04/96* 4/30/99 Year Year 3/04/96*
** Ended Ended to ** Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 (Unaudited) 10/31/98 10/31/97** 10/31/96
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $16.09 $15.51 $12.62 $12.50 $15.77 $15.33 $12.58 $12.50
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.10) (0.15) (0.14) (0.02) (0.14) (0.25) (0.23) (0.05)
Net realized and unrealized
gain/(loss) on investments
and foreign currency 3.77 0.97 3.03 0.14 3.65 0.93 2.98 0.13
----------------------------------------------------------------------------------------
Total from investment
operations 3.67 0.82 2.89 0.12 3.51 0.68 2.75 0.08
Distributions
Distributions from capital gains (1.48) (0.24) -- -- (1.48) (0.24) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $18.28 $16.09 $15.51 $12.62 $17.80 $15.77 $15.33 $12.58
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 23.87%+ 5.51% 22.90% 0.96%+ 23.31%+ 4.65% 21.86% 0.64%+
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $5,593 $4,814 $4,170 $2,966 $17,920 $13,972 $11,802 $6,659
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.67%# 1.675% 1.675% 1.675%# 2.32%# 2.325% 2.325% 2.325%#
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (1.11%)# (0.90%) (1.02%) (0.40%)# (1.76%)# (1.55%) (1.67%) (1.05%#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 109%+ 162% 145% 92%# 109%+ 162% 145% 92%#
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 1.78%# 1.93% 2.24% 2.69%# 2.43%# 2.58% 2.79% 3.05%#
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
# Annualized
+ Non-annualized
** Net investment income per share has been calculated using the average share
method
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small/Mid Cap Fund
-------------------------------------------------------------------
Class C
-------------------------------------------------------------------
Six
Months
Ended
4/30/99 Year Year 3/04/96*
** Ended Ended to
(Unaudited) 10/31/98 10/31/97** 10/31/96
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $15.79 $15.35 $12.59 $12.50
- ---------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.14) (0.25) (0.23) (0.05)
Net realized and unrealized
gain/(loss) on investments
and foreign currency 3.67 0.93 2.99 0.14
---------------------------------------------------------------
Total from investment
operations 3.53 0.68 2.76 0.09
Distributions
Distributions from capital gains (1.48) (0.24) -- --
- ---------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $17.84 $15.79 $15.35 $12.59
- ---------------------------------------------------------------------------------------------------------------------
Total Return 23.41%+ 4.64% 21.92% 0.72%+
=====================================================================================================================
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $19,962 $16,221 $13,471 $8,241
- ---------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.32%# 2.325% 2.325% 2.325%#
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (1.76%)# (1.55%) (1.67%) (1.05%)#
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 109%+ 162% 145% 92%#
- ---------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.43%# 2.58% 2.78% 3.04%#
- ---------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Growth Equity Fund
---------------------------------------------------------------------------------------
Class A Class B
------------------------------------------ -------------------------------------------
Six Six
Months Months
Ended Ended
4/30/99 Year Year 3/04/96* 4/30/99 Year Year 3/04/96*
** Ended Ended to ** Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 (Unaudited) 10/31/98 10/31/97** 10/31/96
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.73 $17.01 $13.78 $12.50 $17.46 $16.90 $13.73 $12.50
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.08) (0.07) (0.03) 0.28 (0.14) (0.18) (0.13) 0.24
Net realized and unrealized
gain/(loss) on investments
and foreign currency 3.87 2.22 3.45 1.00 3.82 2.17 3.46 0.99
------------------------------------------------------------------------------------
Total from investment
operations 3.79 2.15 3.42 1.28 3.68 1.99 3.33 1.23
Distributions
Dividends from net investment
income -- -- (0.19) -- -- -- (0.16) --
Distributions from capital gains (1.15) (1.43) -- -- (1.15) (1.43) -- --
------------------------------------------------------------------------------------
Total distributions (1.15) (1.43) (0.19) (1.15) (1.43) (0.16)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $20.37 $17.73 $17.01 $13.78 $19.99 $17.46 $16.90 $13.73
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 22.16%+ 13.85% 25.13% 10.24%+ 21.86%+ 12.93% 24.50% 9.84%+
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $5,071 $3,919 $3,053 $2,244 $15,741 $11,659 $9,040 $4,748
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.65%# 1.65% 1.65% 1.65%# 2.30%# 2.30% 2.30% 2.30%#
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (0.87)# (0.43%) (0.17%) 4.11%# (1.52) (1.07%) (0.82%) 4.18%#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79%+ 115% 181% 450%# 79%+ 115% 181% 450%#
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 1.77%# 1.91% 2.28% 2.71%# 2.41%# 2.56% 2.78% 3.06%#
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Net investment income per share has been calculated using the average share
method
# Annualized
+ Non-annualized
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth Equity Fund
----------------------------------------------------------------
Class C
----------------------------------------------------------------
Six
Months
Ended Year Year 3/04/96*
4/30/99** Ended Ended to
(Unaudited) 10/31/98 10/31/97** 10/31/96
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.44 $16.89 $13.73 $12.50
- ------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.14) (0.20) (0.13) 0.24
Net realized and unrealized
gain/(loss) on investments
and foreign currency 3.81 2.18 3.46 0.99
----------------------------------------------------------------
Total from investment
operations 3.67 1.98 3.33 1.23
Distributions
Dividends from net investment
income -- -- (0.17) --
Distributions from capital gains (1.15) (1.43) -- --
----------------------------------------------------------------
Total distributions (1.15) (1.43) (0.17)
- ------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $19.96 $17.44 $16.89 $13.73
- ------------------------------------------------------------------------------------------------------------------
Total Return 21.82%+ 12.87% 24.50% 9.84%+
==================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $19,130 $12,965 $12,766 $6,494
- ------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.30%# 2.30% 2.30% 2.30%#
- ------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (1.52)# (1.06%) (0.82%) 4.13%#
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79%+ 115% 181% 450%#
- ------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.41%# 2.56% 2.75% 2.96%#
- ------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Tax-Sensitive Equity Fund
------------------------------------------------------------------------------------
Class A Class B Class C
------------------------ ------------------------- ------------------------
Six Six Six
Months Months Months
Ended 1/06/98* Ended 1/06/98* Ended 1/06/98*
4/30/99** to 4/30/99** to 4/30/99** to
(Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.07 $10.00 $9.04 $10.00 $9.04 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.03) (0.01) (0.05) (0.04)*** (0.05) (0.03)**
Net realized and unrealized
gain/(loss) on Investments
and foreign currency 0.68 (0.92) 0.65 (0.92) 0.64 (0.93)
--------------------------------------------------------------------------------------
Total from investment
operations 0.65 (0.93) 0.60 (0.96) 0.59 (0.96)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.72 $9.07 $9.64 $9.04 $9.63 $9.04
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 7.17%+ (9.30%)+ 6.64%+ (9.60%)+ 6.53%+ (9.60%)+
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $2,111 $4,149 $3,944 $2,900 $3,574 $3,286
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.60%# 1.60%# 2.25%# 2.25%# 2.25%# 2.25%#
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (0.48%)# (0.40%)# (1.14%)# (1.80%)# (1.13%)# (1.84%)#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 40%+ 38%+ 40%+ 38%+ 40%+ 38%+
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.04%# 2.51%# 2.70%# 3.24%# 2.69%# 3.16%#
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Net investment income per share has been calculated using the average share
method
+ Non-annualized
# Annualized
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Oustanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Income Fund
-----------------------------------------------------------------------------------------
Class A
-----------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $24.26 $21.77 $17.56 $14.72 $13.09 $12.29
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.01 0.08 0.14 0.18 0.26 0.12
Net realized and unrealized
gain/(loss) on investments
and foreign currency 4.98 4.14 5.26 2.99 1.90 0.76
---------------------------------------------------------------------------------
Total from investment
operations 4.99 4.22 5.40 3.17 2.16 0.88
---------------------------------------------------------------------------------
Distributions
Dividends from net investment income -- -- (0.15) (0.21) (0.23) (0.08)
Distributions from realized
capital gains (0.96) (1.70) (1.04) (0.12) (0.30) --
Distributions in excess of net
investment income -- (0.03) -- -- -- --
---------------------------------------------------------------------------------
Total distributions (0.96) (1.73) (1.19) (0.33) (0.53) (0.08)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $28.29 $24.26 $21.77 $17.56 $14.72 $13.09
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 21.01%+ 20.82% 31.95% 21.84% 17.28% 5.06%@
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) %52,834 $42,916 $34,186 $18,272 $12,180 $8,134
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.34%# 1.34% 1.34% 1.34% 1.34% 1.34%#
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 0.14%# 0.34% 0.66% 1.10% 1.91% 1.72%#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 10%+ 18% 39% 49% 40% 45%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 1.48%# 1.45% 1.50% 1.56% 1.69% 2.08%#
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Growth and Income Fund
-----------------------------------------------------------------------------------------
Class B
-----------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95** 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $24.01 $21.67 $17.50 $14.69 $13.08 $12.29
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.07) (0.07) 0.01 0.07 0.16 0.10
Net realized and unrealized
gain/(loss) on investments
and foreign currency 4.91 4.11 5.23 2.99 1.94 0.77
-------------------------------------------------------------------------------
Total from investment
operations 4.84 4.04 5.24 3.06 2.10 0.87
-------------------------------------------------------------------------------
Distributions
Dividends from net investment
income -- -- (0.03) (0.13) (0.19) (0.08)
Distributions from realized
capital gains (0.96) (1.70) (1.04) (0.12) (0.30) --
-------------------------------------------------------------------------------
Total distributions (0.96) (1.70) (1.07) (0.25) (0.49) (0.08)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $27.89 $24.01 $21.67 $17.50 $14.69 $13.08
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 20.60%+ 20.04% 31.40% 21.08% 16.73% 4.98%@
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $99,674 $75,574 $54,871 $34,740 $19,052 $3,885
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.99%# 1.99% 1.99% 1.99% 1.99% 1.99%#
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets (0.51%)# (0.32%) 0.01% 0.45% 1.14% 1.07%#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 10%+ 18% 39% 49% 40% 45%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.13%# 2.10% 2.15% 2.20% 2.33% 3.12%#
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
# Annualized
+ Non-annualized
** Net investment income per share has been calculated using the average share
method
@ Historical Total Return is the one-year performance return which includes
Class C performance prior to commencement of operations.
21
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Income Fund
--------------------------------------------------------------------------------------------
Class C
--------------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year Year
4/30/99 ** Ended Ended Ended Ended Ended
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $24.10 $21.75 $17.56 $14.71 $13.08 $12.71
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.07) (0.07) 0.01 0.07 0.18 0.15
Net realized and unrealized
gain/(loss) on investments
and foreign currency 4.93 4.12 5.25 3.00 1.90 0.46
-----------------------------------------------------------------------------------
Total from investment
operations 4.86 4.05 5.26 3.07 2.08 0.61
-----------------------------------------------------------------------------------
Distributions
Dividends from net investment
income -- -- (0.03) (0.10) (0.15) (0.13)
Distributions from realized
capital gains (0.96) (1.70) (1.04) (0.12) (0.30) (0.11)
-----------------------------------------------------------------------------------
Total distributions (0.96) (1.70) (1.07) (0.22) (0.45) (0.24)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $28.00 $24.10 $21.75 $17.56 $14.71 $13.08
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 20.60%+ 20.00% 31.37% 21.12% 16.56% 4.85%
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $154,393 $122,395 $98,250 $74,825 $63,154 $46,078
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.99%# 1.99% 1.99% 1.99% 1.99% 1.99%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (0.51%)# (0.31%) 0.01% 0.45% 1.26% 1.11%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 10%+ 18% 39% 49% 40% 45%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.13%# 2.10% 2.13% 2.20% 2.26% 2.38%
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Equity-Income Fund
-------------------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.64 $17.44 $17.37 $15.94 $14.78 $14.59
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.13 0.29 0.33 0.16 0.12 0.02
Net realized and unrealized
gain/(loss) on investments
and foreign currency 1.35 1.46 3.59 2.69 1.83 0.17
-------------------------------------------------------------------------------------
Total from investment
operations 1.48 1.75 3.92 2.85 1.95 0.19
-------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.29) (0.33) (0.18) (0.14) -- --
Distributions from realized capital
gains (1.12) (1.22) (3.67) (1.28) (0.79) --
-------------------------------------------------------------------------------------
Total distributions (1.41) (1.55) (3.85) (1.42) (0.79) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $17.71 $17.64 $17.44 $17.37 $15.94 $14.78
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 8.85%+ 10.55% 27.24% 19.23% 14.22% 4.82%@
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $28,941 $36,661 $36,334 $28,470 $22,026 $16,326
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average 1.42%# 1.415% 1.34% 1.34% 1.34% 1.34%#
net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 1.47%# 1.57% 2.01% 0.98% 0.79% 0.13%#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55%+ 22% 36% 169% 54% 39%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 1.58%# 1.51% 1.55% 1.55% 1.62% 1.79%#
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
# Annualized
+ Non-annualized
** Net investment income per share has been calculated using the average share
method
@ Historical Total Return is the one-year performance return which includes
Class C performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Equity-Income Fund
---------------------------------------------------------------------------------------
Class B
---------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.43 $17.24 $17.22 $15.84 $14.77 $14.59
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.07 0.16 0.23 0.06 0.02 (0.02)
Net realized and unrealized
gain/(loss) on investments and
foreign currency 1.35 1.46 3.54 2.69 1.84 0.20
-------------------------------------------------------------------------------------
Total from investment
operations 1.42 1.62 3.77 2.75 1.86 0.18
-------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.17) (0.21) (0.08) (0.09) -- --
Distributions from realized capital
gains (1.12) (1.22) (3.67) (1.28) (0.79) --
-------------------------------------------------------------------------------------
Total distributions (1.29) (1.43) (3.75) (1.37) (0.79) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $17.56 $17.43 $17.24 $17.22 $15.84 $14.77
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 8.55% + 9.81% 26.29% 18.59% 13.58% 4.75% @
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $37,304 $38,954 $36,191 $27,058 $19,874 $5,054
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.07% # 2.065% 1.99% 1.99% 1.99% 1.99% #
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 0.79% # 0.93% 1.36% 0.33% 0.13% (0.52%) #
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% + 22% 36% 169% 54% 39%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.23% # 2.16% 2.21% 2.20% 2.32% 2.82% #
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Equity-Income Fund
-------------------------------------------------------------------------------------
Class C
-------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.53 $17.33 $17.27 $15.84 $14.77 $14.21
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.07 0.17 0.23 0.06 0.02 (0.07)
Net realized and unrealized
gain/(loss) on investments and
foreign currency 1.35 1.46 3.56 2.69 1.84 0.74
-------------------------------------------------------------------------------------
Total from investment
operations 1.42 1.63 3.79 2.75 1.86 0.67
-------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.17) (0.21) (0.06) (0.04) -- (0.03)
Distributions from realized capital
gains (1.12) (1.22) (3.67) (1.28) (0.79) (0.08)
-------------------------------------------------------------------------------------
Total distributions (1.29) (1.43) (3.73) (1.32) (0.79) (0.11)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $17.66 $17.53 $17.33 $17.27 $15.84 $14.77
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 8.51% + 9.83% 26.33% 18.53% 13.58% 4.75%
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $86,983 $95,986 $94,649 $83,855 $83,719 $71,219
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.07% # 2.065% 1.99% 1.99% 1.99% 1.99% #
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 0.80% # 0.93% 1.36% 0.33% 0.15% (0.49%) #
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% + 22% 36% 169% 54% 39%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.23% # 2.10% 2.19% 2.20% 2.23% 2.29% #
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
# Annualized
+ Non-annualized
** Net investment income per share has been calculated using the average
share method
@ Historical Total Return is the one-year performance return which includes
Class C performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced Fund
-----------------------------------------------------------------------------------------
Class A
-----------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year 4/01/94*
4/30/99 ** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95** 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $11.48 $12.58 $12.33 $12.02 $11.13 $11.06
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.11 0.25 0.34 0.39 0.38 0.17
Net realized and unrealized
gain/(loss) on investments
and foreign currency 0.24 1.04 1.52 1.07 1.35 (0.10)
-----------------------------------------------------------------------------------------
Total from investment
operations 0.35 1.29 1.86 1.46 1.73 0.07
-----------------------------------------------------------------------------------------
Distributions
Dividends from net investment
income (0.23) (0.32) (0.45) (0.40) (0.32) --
Distributions from realized
capital gains (0.84) (2.07) (1.16) (0.75) (0.52) --
-----------------------------------------------------------------------------------------
Total distributions (1.07) (2.39) (1.61) (1.15) (0.84) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.76 $11.48 $12.58 $12.33 $12.02 $11.13
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 3.12% + 12.42% 17.01% 13.10% 16.95% 0.76% @
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $14,848 $14,415 $12,294 $10,873 $10,033 $7,830
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.39% # 1.39% 1.34% 1.34% 1.34% 1.34% #
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 1.92% # 2.11% 2.74% 3.32% 3.39% 2.72% #
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 103% + 185% 211% 253% 226% 246%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 1.60% # 1.53% 1.59% 1.55% 1.69% 1.86% #
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Balanced Fund
-----------------------------------------------------------------------------------------
Class B
-----------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year 4/01/94*
4/30/99 ** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97** 10/31/96** 10/31/95** 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $11.40 $12.49 $12.26 $11.98 $11.12 $11.06
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.07 0.18 0.25 0.31 0.30 0.12
Net realized and unrealized
gain/(loss) on investments
and foreign currency 0.23 1.04 1.53 1.07 1.36 (0.06)
-----------------------------------------------------------------------------------------
Total from investment
operations 0.30 1.22 1.78 1.38 1.66 0.06
-----------------------------------------------------------------------------------------
Distributions
Dividends from net investment
income (0.15) (0.24) (0.39) (0.35) (0.28) --
Distributions from realized
capital gains (0.84) (2.07) (1.16) (0.75) (0.52) --
-----------------------------------------------------------------------------------------
Total distributions (0.99) (2.31) (1.55) (1.10) (0.80) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.71 $11.40 $12.49 $12.26 $11.98 $11.12
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 2.68% + 11.71% 16.27% 12.35% 16.31% 0.67% @
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $17,482 $18,929 $17,140 $16,219 $9,875 $4,760
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.04% # 2.04% 1.99% 1.99% 1.99% 1.99% #
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 1.27% # 1.46% 2.09% 2.67% 2.69% 2.07% #
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 103% + 185% 211% 253% 226% 246%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.25% # 2.18% 2.23% 2.20% 2.37% 2.73% #
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
# Annualized
+ Non-annualized
**Net investment income per share has been calculated using the average
share method
@ Historical Total Return is the one-year performance return which includes
Class C performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Balanced Fund
--------------------------------------------------------------------------------------
Class C
--------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year Year
4/30/99** Ended Ended Ended Ended Ended
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $11.54 $12.62 $12.35 $12.02 $11.12 $11.52
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.07 0.18 0.25 0.32 0.31 0.22
Net realized and unrealized gain/(loss) on
investments and foreign currency 0.24 1.05 1.54 1.07 1.35 (0.15)
--------------------------------------------------------------------------------------
Total from investment operations 0.31 1.23 1.79 1.39 1.66 0.07
--------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.15) (0.24) (0.36) (0.31) (0.24) (0.18)
Distributions from realized capital
gains (0.84) (2.07) (1.16) (0.75) (0.52) (0.29)
--------------------------------------------------------------------------------------
Total distributions (0.99) (2.31) (1.52) (1.06) (0.76) (0.47)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.86 $11.54 $12.62 $12.35 $12.02 $11.12
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return 2.76%+ 11.68% 16.21% 12.41% 16.25% 0.67%
==================================================================================================================================
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $63,023 $65,049 $68,261 $72,821 $80,626 $86,902
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.04%# 2.04% 1.99% 1.99% 1.99% 1.99%#
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 1.27%# 1.47% 2.09% 2.67% 2.76% 1.93%#
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 103%+ 185% 211% 253% 226% 246%
- ----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.25%# 2.18% 2.20% 2.20% 2.24% 2.22%#
- ----------------------------------------------------------------------------------------------------------------------------------
==================================================================================================================================
<CAPTION>
Strategic Income Fund
---------------------------------------------------------------------------------------
Class A
---------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/99** Ended Ended Ended Ended Ended
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $8.99 $9.76 $9.80 $9.07 $8.90 $10.00
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.35 0.67 0.70 0.80 0.78 0.65
Net realized and unrealized gain/(loss) on
investments and foreign currency 0.11 (0.63) 0.28 0.72 0.18 (1.10)
---------------------------------------------------------------------------------------
Total from investment operations 0.46 0.04 0.98 1.52 0.96 (0.45)
---------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.35) (0.67) (0.84) (0.79) (0.79) (0.65)
Distributions from realized capital gains (0.05) (0.14) (0.18) -- -- --
---------------------------------------------------------------------------------------
Total distributions (0.40) (0.81) (1.02) (0.79) (0.79) (0.65)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.05 $8.99 $9.76 $9.80 $9.07 $8.90
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return 5.28%+ 0.22% 10.57% 17.35% 11.43% (3.79%)
==================================================================================================================================
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $11,443 $15,296 $15,924 $13,382 $10,041 $15,507
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average net assets 1.50%# 1.50% 1.50% 1.50% 1.07% 0.41%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 7.76%# 7.02% 7.25% 8.28% 9.08% 8.26%
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79%+ 162% 193% 68% 180% 136%
- ----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 1.65%# 1.56% 1.61% 1.65% 1.69% .96%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
# Annualized
+ Non-annualized
** Net investment income per share has been calculated using the average
share method
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strategic Income Fund
-----------------------------------------------------------------------------------------
Class B
-----------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $8.99 $9.76 $9.80 $9.07 $8.90 $9.31
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.32 0.61 0.64 0.73 0.73 0.38
Net realized and unrealized
gain/(loss) on investments
and foreign currency 0.12 (0.63) 0.28 0.73 0.17 (0.41)
-----------------------------------------------------------------------------------------
Total from investment operations 0.44 (0.02) 0.92 1.46 0.90 (0.03)
-----------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.32) (0.61) (0.78) (0.73) (0.73) (0.38)
Distributions from realized capital gains (0.05) (0.14) (0.18) -- -- --
-----------------------------------------------------------------------------------------
Total distributions (0.37) (0.75) (0.96) (0.73) (0.73) (0.38)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.06 $8.99 $9.76 $9.80 $9.07 $8.90
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return 5.06%+ (0.43%) 9.86% 16.59% 10.72% (4.18%)@
==================================================================================================================================
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $27,341 $29,210 $34,590 $30,890 $20,672 $5,440
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.15%# 2.15% 2.15% 2.15% 1.95% 1.00%#
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 7.11%# 6.39% 6.60% 7.63% 8.10% 8.59%#
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79%+ 162% 193% 68% 180% 136%
- ----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.31%# 2.21% 2.23% 2.27% 2.38% 2.04%#
- ----------------------------------------------------------------------------------------------------------------------------------
==================================================================================================================================
<CAPTION>
Strategic Income Fund
-----------------------------------------------------------------------------------------
Class C
-----------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $8.99 $9.76 $9.80 $9.07 $8.90 $9.31
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.32 0.61 0.64 0.73 0.73 0.38
Net realized and unrealized gain/(loss)
on investments and foreign currency 0.12 (0.63) 0.28 0.73 0.17 (0.41)
-----------------------------------------------------------------------------------------
Total from investment operations 0.44 (0.02) 0.92 1.46 0.90 (0.03)
-----------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.32) (0.61) (0.78) (0.73) (0.73) (0.38)
Distributions from realized capital
gains (0.05) (0.14) (0.18) -- -- --
-----------------------------------------------------------------------------------------
Total distributions (0.37) (0.75) (0.96) (0.73) (0.73) (0.38)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.06 $8.99 $9.76 $9.80 $9.07 $8.90
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return 5.06%+ (0.43%) 9.86% 16.59% 10.72% (4.20%)@
==================================================================================================================================
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $29,234 $33,537 $32,683 2,783 $14,273 $8,439
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 2.15%# 2.15% 2.15% 2.15% 1.95% 1.00%#
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 7.14%# 6.37% 6.60% 7.63% 8.25% 8.59%#
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 79%+ 162% 193% 68% 180% 136%
- ----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.30%# 2.21% 2.24% 2.28% 2.37% 1.96%#
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
**Net investment income per share has been calculated using the average
share method
# Annualized
@ Historical Total Return is the one-year performance return which includes
Class A performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Investment Quality Bond Fund
-------------------------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/99** Ended Ended Ended Ended Ended
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.63 $10.52 $10.34 $10.56 $9.74 $11.16
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.33 0.68 0.67 0.66 0.68 0.60
Net realized and unrealized
gain/(loss) on investments and
foreign currency (0.24) 0.10 0.18 (0.20) 0.82 (1.37)
--------------------------------------------------------------------------------------
Total from investment operations 0.09 0.78 0.85 0.46 1.50 (0.77)
--------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.34) (0.67) (0.67) (0.68) (0.68) (0.56)
Distributions from realized capital gains -- -- -- -- -- (0.09)
--------------------------------------------------------------------------------------
Total distributions (0.34) (0.67) (0.67) (0.68) (0.68) (0.65)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.38 $10.63 $10.52 $10.34 $10.56 $9.74
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 0.80%+ 7.63% 8.57% 4.52% 15.91% (7.08%)
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $6,515 $6,730 7,110 $9,056 $10,345 $11,150
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average 1.25%# 1.25% 1.25% 1.25% 1.25% 1.25%#
net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 6.27%# 6.45% 6.54% 6.37% 6.72% 5.86%#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24%+ 48% 65% 56% 132% 186%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 1.59%# 1.54% 1.62% 1.55% 1.73% 1.74%#
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
<TABLE>
Investment Quality Bond Fund
--------------------------------------------------------------------------------------------
Class B
--------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.62 $10.52 $10.33 $10.55 $9.74 $10.21
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.29 0.61 0.60 0.60 0.61 0.33
Net realized and unrealized
gain/(loss)on investments (0.22) 0.10 0.20 (0.20) 0.82 (0.51)
-----------------------------------------------------------------------------------------
Total from investment operations 0.07 0.71 0.80 0.40 1.43 (0.18)
-----------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.31) (0.61) (0.61) (0.62) (0.62) (0.29)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.38 $10.62 $10.52 $10.33 $10.55 $9.74
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 0.61%+ 6.93% 8.05% 3.92% 15.12% (7.34%)@
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $4,653 $4,845 $4,613 $4,678 $3,472 $489
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.90%# 1.90% 1.90% 1.90% 1.90% 1.90%#
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 5.62%# 5.81% 5.89% 5.72% 5.95% 5.70%#
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24%+ 48% 65% 56% 132% 186%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.24%# 2.20% 2.33% 2.27% 2.69% 4.88%#
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Net investment income per share has been calculated using the average share
method
# Annualized
+ Non-annualized
@ Historical Total Return is the one-year performance return which includes
Class A performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Investment Quality Bond Fund
----------------------------------------------------------------------------------------
Class C
----------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.62 $10.52 $10.33 $10.55 $9.74 $10.21
- -----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.29 0.61 0.60 0.60 0.61 0.33
Net realized and unrealized
gain/(loss)on investments (0.22) 0.10 0.20 (0.20) 0.82 (0.51)
----------------------------------------------------------------------------------------
Total from investment operations 0.07 0.71 0.80 0.40 1.43 (0.18)
----------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.31) (0.61) (0.61) (0.62) (0.62) (0.29)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.38 $10.62 $10.52 $10.33 $10.55 $9.74
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 0.61%+ 6.93%+ 8.05% 3.92% 15.12% (7.34%)@
===================================================================================================================================
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $5,661 $5,532 $6,109 $7,543 $7,206 $2,406
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.90%# 1.90% 1.90% 1.90% 1.90% 1.90%#
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 5.62%# 5.81% 5.89% 5.72% 6.00% 5.70% #
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24%+ 48% 65% 56% 132% 186%
- -----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.24%# 2.20% 2.29% 2.22% 2.50% 3.05%#
- -----------------------------------------------------------------------------------------------------------------------------------
===================================================================================================================================
<CAPTION>
National Municipal Bond Fund
-----------------------------------------------------------------------------------------
Class A
-----------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year Year
4/30/99 ** Ended Ended Ended Ended Ended
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.22 $10.09 $9.73 $9.62 $8.82 $10.25
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.18 0.47 0.48 0.48 0.51 0.51
Net realized and unrealized
gain/(loss)on investments (0.13) 0.13 0.36 0.11 0.80 (1.43)
-----------------------------------------------------------------------------------------
Total from investment operations 0.05 0.60 0.84 0.59 1.31 (0.92)
-----------------------------------------------------------------------------------------
Distributions
Dividends from net investment
income (0.18) (0.47) (0.48) (0.48) (0.51) (0.51)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.09 $10.22 $10.09 $9.73 $9.62 $8.82
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 0.86% + 6.04% 8.85% 6.31% 15.26% (9.24%)
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $5,563 $5,820 $6,347 $7,710 $7,618 $7,663
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.00% # 1.00% 0.99% 0.99% 0.80% 0.57%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 4.43% # 4.60% 4.87% 4.99% 5.55% 5.28%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24% + 43% 29% 49% 44% 6%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 1.41% # 1.23% 1.23% 1.25% 1.34% 1.26%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Net investment income per share has been calculated using the average share
method
# Annualized
+ Non-annualized
@ Historical Total Return is the one-year performance return which includes
Class A performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
National Municipal Bond Fund
------------------------------------------------------------------------------------------
Class B
------------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Year 4/01/94*
4/30/99 ** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.22 $10.09 $9.73 $9.62 $8.81 $9.30
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.15 0.38 0.40 0.40 0.43 0.25
Net realized and unrealized
gain/(loss)on investments (0.13) 0.13 0.36 0.11 0.81 (0.49)
------------------------------------------------------------------------------------------
Total from investment
operations 0.02 0.51 0.76 0.51 1.24 (0.24)
------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.15) (0.38) (0.40) (0.40) (0.43) (0.25)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.09 $10.22 $10.09 $9.73 $9.62 $8.81
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return 0.50%+ 5.15% 7.94% 5.41% 14.42% (9.71%)@
==================================================================================================================================
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $5,304 $5,273 $6,532 $6,130 $5,876 $2,036
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 1.85%# 1.85% 1.84% 1.84% 1.70% 1.24%#
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 3.58%# 3.75% 4.02% 4.14% 4.59% 4.62%#
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24%+ 43% 29% 49% 44% 6%
- ----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.26%# 2.08% 2.15% 2.11% 2.41% 2.81%#
- ----------------------------------------------------------------------------------------------------------------------------------
==================================================================================================================================
<CAPTION>
National Municipal Bond Fund
--------------------------------------------------------------------------------------
Class C
--------------------------------------------------------------------------------------
Six
Months Year Year Year Year 4/01/94*
Ended Ended Ended Ended Ended to
4/30/99 ** 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
(Unaudited)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.22 $10.09 $9.73 $9.62 $8.81 $9.30
- ---------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.15 0.38 0.40 0.40 0.43 0.25
Net realized and unrealized
gain/(loss)on investments (0.13) 0.13 0.36 0.11 0.81 (0.49)
--------------------------------------------------------------------------------------
Total from investment operations 0.02 0.51 0.76 0.51 1.24 (0.24)
--------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.15) (0.38) (0.40) (0.40) (0.43) (0.25)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.09 $10.22 $10.09 $9.73 $9.62 $8.81
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return 0.50%+ 5.15% 7.94% 5.41% 14.42% (9.71%)@
=================================================================================================================================
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $4,865 $5,147 $5,305 $5,693 $6,834 $1,911
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average net
assets 1.85%# 1.85% 1.84% 1.84% 1.70% 1.24%#
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
(loss) to average net assets 3.58%# 3.75% 4.02% 4.14% 4.53% 4.62%#
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24%+ 43% 29% 49% 44% 6%
- ---------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 2.26%# 2.08% 2.15% 2.25% 2.63% 2.78%#
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Net investment income per share has been calculated using the average
share method
# Annualized
+ Non-annualized
@ Historical Total Return is the one-year performance return which includes
Class A performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Government Securities Fund
-----------------------------------------------------------------------------------
Class A
-----------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/99 ** Ended Ended Ended Ended Ended
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.08 $9.94 $9.80 $9.98 $9.45 $10.35
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.27 0.56 0.59 0.56 0.63 0.53
Net realized and unrealized gain/(loss)on
investments (0.19) 0.16 0.13 (0.12) 0.57 (0.74)
----------------------------------------------------------------------------------
Total from investment operations 0.08 0.72 0.72 0.44 1.20 (0.21)
----------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.29) (0.58) (0.58) (0.56) (0.67) (0.50)
Distributions from realized capital gains -- -- -- -- -- (0.19)
----------------------------------------------------------------------------------
Total distributions (0.29) (0.58) (0.58) (0.62) (0.67) (0.69)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.87 $10.08 $9.94 $9.80 $9.98 $9.45
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return 0.78% + 7.41% 7.56% 4.64% 13.15% (2.13%)
====================================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $44,096 $49,624 $53,235 $72,774 $81,179 $100,622
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average net assets 1.25% # 1.25% 1.25% 1.25% 1.25% 1.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 5.48% # 5.65% 6.20% 5.71% 6.54% 5.39%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 41% + 116% 364% 477% 469% 279%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 1.45% # 1.40% 1.42% 1.41% 1.45% 1.47%
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
<CAPTION>
U.S. Government Securities Fund
--------------------------------------------------------------------------------
Class B
--------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year 4/01/94*
4/30/99 ** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.07 $9.94 $9.80 $9.98 $9.45 $9.77
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.24 0.49 0.54 0.50 0.56 0.29
Net realized and unrealized gain/(loss)on
investments (0.19) 0.15 0.11 (0.12) 0.58 (0.35)
------------------------------------------------------------------------------
Total from investment operations 0.05 0.64 0.65 0.38 1.14 (0.06)
------------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.26) (0.51) (0.51) (0.50) (0.61) (0.26)
Distributions in excess of net investment income -- -- -- (0.06) -- --
------------------------------------------------------------------------------
Total distributions (0.26) (0.51) (0.51) (0.56) (0.61) (0.26)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.86 $10.07 $9.94 $9.80 $9.98 $9.45
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 0.45%+ 6.60% 6.84% 3.97% 12.45% (2.44%)@
===================================================================================================================================
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $13,354 $17,850 $16,659 $19,444 $13,993 $2,746
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average net assets 1.90% # 1.90% 1.90% 1.90% 1.90% 1.90%#
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
net assets 4.83% # 4.99% 5.55% 5.06% 5.53% 5.06%#
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 41% + 116% 364% 477% 469% 279%
- ----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense reimbursement
by advisor 2.10% # 2.05% 2.09% 2.06% 2.28% 3.40% #
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
+ Non-annualized
# Annualized
** Net investment income per share has been calculated using the average
share method
@ Historical Total Return is the one-year performance return which includes
Class A performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government Securities Fund
---------------------------------------------------------------------------
Class C
---------------------------------------------------------------------------
Six Months
Ended Year Year Year Year 4/01/94*
4/30/99 ** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95 10/31/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.07 $9.94 $9.80 $9.98 $9.45 $9.77
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) 0.24 0.49 0.54 0.50 0.56 0.26
Net realized and unrealized gain/(loss)on
investments (0.19) 0.15 0.11 (0.12) 0.58 (0.32)
--------------------------------------------------------------------------
Total from investment operations 0.05 0.64 0.65 0.38 1.14 (0.06)
--------------------------------------------------------------------------
Distributions
Dividends from net investment income (0.26) (0.51) (0.51) (0.50) (0.61) (0.26)
Distributions in excess of net investment income ------- ------- ------- (0.06) ------- -------
--------------------------------------------------------------------------
Total distributions (0.26) (0.51) (0.51) (0.56) (0.61) (0.26)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.86 $10.07 $9.94 $9.80 $9.98 $9.45
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 0.45% + 6.60% 6.84% 3.97% 12.45% (2.44%)@
===================================================================================================================================
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $12,380 $12,708 $14,716 $20,009 $20,186 $10,766
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average net assets 1.90% # 1.90% 1.90% 1.90% 1.90% 1.90% #
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
net assets 4.82% # 5.00% 5.55% 5.06% 5.74% 5.06% #
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 41% + 116% 364% 477% 469% 279%
- -----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense reimbursement
by advisor 2.11% # 2.05% 2.09% 2.06% 2.15% 2.44% #
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
====================================================================================================================================
Money Market Fund
-------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------
Six Months
Ended Year Ended Year Ended Year Ended Year Ended Year Ended
4/30/99 ** 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
(Unaudited)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.03
Distributions
Dividends from net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.03)
-----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-----------------------------------------------------------------------------------------------------------------------------------
Total Return 2.19% + 5.18% 5.13% 5.16% 5.60% 3.48%
===================================================================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $10,282 $10,295 $11,057 $8,087 $11,379 $8,499
-----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average net assets 0.50% # 0.50% 0.50% 0.50% 0.50% 0.50%
-----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 4.39% # 5.06% 5.02% 5.02% 5.45% 3.40%
-----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by advisor 0.80% # 0.92% 0.96% 0.95% 0.96% 0.95%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
+ Non-annualized
# Annualized
** Net investment income per share has been calculated using the average
share method
@ Historical Total Return is the one-year performance return which includes
Class A performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Market Fund
--------------------------------------------------------------------------------
Class B
--------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.02
Distributions
Dividends from net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return 2.19%+ 5.18% 5.13% 5.16% 5.60% 3.48%@
==================================================================================================================================
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $4,973 $5,919 $3,332 $3,062 $1,564 $312
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 0.50%# 0.50% 0.50% 0.50% 0.50% 0.50%#
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average net assets 4.39%# 5.02% 5.02% 5.02% 5.52% 3.96%#
- ----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense reimbursement
by advisor 0.80%# 0.98% 1.05% 1.18% 1.41% 4.83%#
- ----------------------------------------------------------------------------------------------------------------------------------
==================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Money Market Fund
------------------------------------------------------------------------------
Class C
------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year 4/01/94*
4/30/99** Ended Ended Ended Ended to
(Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.02
Distributions
Dividends from net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return 2.19%+ 5.18% 5.13% 5.16% 5.60% 3.48%@
==================================================================================================================================
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's) $7,776 $8,237 $7,539 $9,840 $9,394 $12,170
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 0.50%# 0.50% 0.50% 0.50% 0.50% 0.50%#
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average net assets 4.38%# 5.05% 5.01% 5.02% 5.46% 3.96%#
- ----------------------------------------------------------------------------------------------------------------------------------
Expense ratio before expense reimbursement
by advisor 0.79%# 0.94% 1.00% 0.98% 0.95% 1.18%#
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Net investment income per share has been calculated using the average
share method
+ Non-annualized
# Annualized
@ Historical Total Return is the one-year performance return which includes
Class A performance prior to commencement of operations.
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited)
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
International Small Cap Fund
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 76.26% ------ -----
Agriculture - 1.81%
Nutreco Holding NV* 8,000 $324,104
--------
Air Travel - 3.55%
Kobenhavns Lufthavne 2,275 227,979
Ryanair Holdings Plc* 9,100 407,225
-------
635,204
Automobiles & Related - 0.56%
Haldex AB 6,995 100,319
-------
Broadcasting - 7.39%
Capital Radio 16,400 227,419
Class Editore* 8,400 81,639
Flextech Plc 26,750 385,694
Gruppo Editoriale L'Espresso SpA* 21,975 321,519
Primacom* 100 4,331
United International Holdings, Inc.* 5050 301,738
-------
1,322,340
Business Services - 7.46%
Altran Technologies SA 2,225 528,860
BTG Plc 13,575 58,963
Select Appointments Holdings Plc 23,775 302,915
Semcon AB 11,625 112,984
Sixt AG 4,575 331,063
-------
1,334,785
Computer Peripherals - 6.18%
Dassault Systemes SA 3,725 137,059
Eidos Plc* 10,525 396,003
Ixos Software* 800 163,108
Nippon System Development 8,000 408,642
-------
1,104,812
Computers & Business Equipment - 5.46%
Fuji Software ABC, Inc. 7,280 442,579
Misys 7,385 68,668
Psion Plc 31,850 466,258
-------
977,505
Consumer Products - 1.34%
Fancl Corporation 1,300 185,061
Royal Canin 1050 54,163
------
239,224
Drugs & Health Care - 2.76%
Icon Plc* 7,075 111,431
Ortivus AB 7,350 47,914
Rhon Klinikum AG 800 80,286
Schwarz Pharma AG* 4,950 254,138
-------
493,769
Electronics - 4.40%
Kudelski SA* 60 233,991
Logitech International* 1,100 158,616
Natsteel Electronics* 68,000 228,498
Singulus Technology 1,175 166,330
-------
787,435
Energy - 1.25%
Vestas Wind Systems*, 144A 3,275 223,448
-------
Environmental Services - 1.58%
Tomra Systems AS 7,125 282,792
-------
Food & Beverages - 3.73%
Baron de Ley* 4,650 160,140
Chipita International* 6,562 140,523
Ordina Beheer NV* 3,000 71,941
Raision Tehtaat Oy Plc* 32,325 295,381
-------
667,985
Homebuilders - 1.31%
IHC Caland NV* 5,175 234,529
-------
Hotels & Restaurants - 7.75%
Grupo Posadas SA* 246,575 168,119
Krasnapolsky Hotels* 900 72,068
Pizza Express 39,250 577,744
Tele Pizza* 500,075 317,395
J.D. Wetherspoon Plc 52,965 251,354
-------
1,386,680
Household Appliances & Furnishings - 3.57%
Dorel Industries, Inc.* 9,675 205,696
Hunter Douglas NV* 6,350 244,847
Industrie Natuzzi SpA* 9,825 187,903
-------
638,446
Industrial Machinery - 0.94%
KCI Konecranes International Plc 4,525 167,307
-------
International Oil - 1.23%
Coflexip* 2,425 107,913
Stolt Comex Seaway* 8900 111,250
-------
219,163
Leisure Time - 3.31%
Cinar Films, Inc.* 20,250 422,719
Ducati Motor Holding* 15,100 44,665
KTM-Motorraholding 2,000 124,845
-------
592,229
Paper - 0.81%
Aracruz Cellulose SA 7,225 144,500
-------
Publishing - 0.74%
Scoot.com* 187,975 133,054
-------
Retail Trade - 4.68%
Beter Bed Holdings NV* 3,225 92,838
Bulgari SpA 50,850 306,192
Douglas Holdings AG* 4,350 199,897
Narvesen ASA* 2,300 56,834
Ryohln Keikaku Co. 1000 182,130
-------
837,891
Telecommunication Services - 4.45%
Energis Plc* 11,800 309,417
ESAT Telecom Group Plc* 3,875 189,391
Filtronic 16,675 230,159
Phonak* 55 66,690
------
795,657
TOTAL COMMON STOCKS
(Cost $10,295,028) $13,643,178
===========
PREFERRED STOCKS - 6.09%
Automobiles - 2.99%
Porsche AG 220 $534,539
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
================================================================================
Shares Value
------ -----
Financial Services - 3.10%
Marschollek, Lautenschlaeger und
Partner AG* 990 $554,293
--------
TOTAL PREFERRED STOCKS
(Cost $620,451) $1,088,832
----------
WARRANTS - 0.01%
Gold Peak Industries (Expires
08/06/00; strike price HKD 5.25)* 36,000 $1,115
------
TOTAL WARRANTS (Cost $0) $1,115
------
SHORT TERM INVESTMENTS - 17.64%
Navigator Securities Lending Trust 2,854,376 $2,854,376
SSGA Money Market Fund 301,274 301,274
-------
$3,155,650
----------
TOTAL INVESTMENTS (International
Small Cap Fund) (Cost $14,071,129) $17,888,775
===========
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS - 96.96%
Aerospace & Military Technology - 0.37%
British Aerospace Plc 7,194 $53,814
Singapore Technologies Engineering 23,000 24,677
Thomson 492 16,112
------
94,604
Appliances & Household Durables - 1.79%
Electrolux AB 1,100 22,295
Philips Electronics 616 53,036
Matsushita Electric Industrial 7,000 133,060
Pioneer Electronic Corporation 1,000 19,009
Sanyo Electric Company Ltd. 8,000 29,945
Sharp Corporation 5,000 58,617
Sony Corporation 1,500 140,052
-------
456,012
Automobiles - 4.33%
Cycle & Carriage Ltd. 2,000 11,908
Daimlerchrysler AG 2,700 266,546
Fiat SpA ITL1000 Ncvt Risp Shs 3,436 6,153
Fiat SpA ITL1000 Ords 14,291 47,858
Honda Motor Company 4,000 176,185
Nissan Motors Company 11,000 42,187
Peugeot SA 156 25,873
Toyota Motor Corp. 15,000 425,808
Volkswagen AG 950 67,340
Volvo AB 1,200 31,646
------
1,101,504
Banking - 16.68%
77 Bank Ltd. 1,000 9,002
Abbey National Plc. 5,272 118,735
Abn Amro Holdings NV 4,941 117,704
Argentaria, Caja Postal Y Banco 2,332 54,838
Asahi Bank Ltd. 9,000 47,555
Banca Commerciale Italiana 6,507 53,548
Banca Intesa SpA 8,812 46,917
Banca Popolare di Milano 1,220 10,375
Banco Bilbao Vizcaya SA 10,534 157,574
Banco Comercial Portugues SA 1,336 37,669
Banco Espirito Santo 690 16,576
Banco Santander Central Hispano 9,028 196,084
Bank Austria AG 861 53,400
Bank of East Asia Ltd. 5,400 13,133
Bank of Tokyo-Mitsubishi Ltd 17,000 250,829
Bank of Yokohama Ltd. 4,000 11,221
Banque Nationale de Paris 611 50,636
Barclays Plc 5,293 168,424
Bayerische Hypo-Und Vereinsbank 1,300 84,734
BPI-SGPS SA 664 17,887
Chiba Bank Ltd. 2,000 8,391
Credit Suisse Holding 780 154,650
Deutsche Bank AG 1,600 92,963
Dresdner Bank AG 1,550 66,807
Foereningssparbanken AB 1,000 21,927
Fuji Bank Ltd. 18,000 140,479
Grupo Financiero Bancomer SA 310,200 107,764
Gunma Bank Ltd. 1,000 7,285
Halifax Plc 9,455 132,633
Hang Seng Bank Ltd. 6,800 80,493
HSBC Holdings Plc HKD 6,081 228,911
HSBC Holdings Plc GBP 2,468 94,294
Industrial Bank of Japan 11,000 91,651
Joyo Bank Ltd. 2,000 7,955
Lloyds TSB Group Plc 18,685 301,187
Mediobanca SpA 2,240 28,159
Mitsubishi Trust & Banking Corp. 4,000 43,879
National Australia Bank Ltd. 6,740 131,219
Oversea-Chinese Banking Corp. Ltd. 8,000 74,987
Paribas 523 55,581
Sakura Bank Ltd. 15,000 57,905
San Paolo IMI SpA 4,773 71,599
Shizuoka Bank Ltd. 2,000 23,564
Skandinaviska Enskilda Banken 1,700 22,164
Societe Generale 286 51,181
Sumitomo Bank 11,000 148,853
Suncorp Metway Ltd. 1,614 9,826
Svenska Handelsbanken 600 22,472
Tokai Bank Ltd 7,000 45,721
UBS AG 600 203,710
Unicredito Italiano 14,803 75,062
United Overseas Bank Ltd. 6,000 46,336
Westpac Banking Corp. 9,258 70,675
Wing Lung Bank Ltd. 1,600 6,317
-----
4,243,441
Beverages & Tobacco - 2.29%
Asahi Breweries Ltd. 3,000 39,089
Austria Tabak AG 169 10,355
Bass Plc 3,023 47,464
British American Tobacco Plc 5,608 47,273
Coca-Cola Amatil Ltd. 4,789 22,729
Diageo Plc 12,813 147,584
Fosters Brewing Group Ltd. 9,017 26,303
Fraser & Neave Ltd. 2,000 8,843
Heineken Holdings NV 1,071 53,742
Kirin Brewery Company Ltd. 5,000 56,523
Moet Hennessy Louis Vuitton 261 69,978
Oesterreichische Brau-Beteilign 70 3,017
Pernod Ricard 210 14,165
Seita Soc. Nat'l. D'Exploitation 198 11,923
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Beverages & Tobacco - continued %
Swedish Match AB 1,400 $4,596
Tabacalera SA 904 17,600
Unicer Uniao Cervejjeira SA 94 2,135
-----
583,318
Broadcasting & Publishing - 1.26%
British Sky Broadcasting Group 6,028 52,850
Canal Plus SA 91 25,302
Elsevier NV 2,074 31,002
Mediaset SpA 4,067 35,230
News Corp Ltd. 9,562 80,133
Reed International Plc 4,324 39,336
South China Morning Post 10,000 6,031
Television Broadcasts Ltd. 2,000 8,128
Wolters Kluwer NV 1,000 43,524
------
321,537
Building Materials & Components - 1.11%
Blue Circle Industries Plc 6,795 44,052
Boral Ltd. 5,593 9,142
BPB Plc 3,186 16,657
Cimpor Cimentos de Portugal SA 604 16,590
CSR Ltd. 5,213 13,937
Heidelberger Zement AG 150 10,157
Holderbank Financiere Glarus AG 20 24,107
Italcementi Fabbriche Riunite 535 6,189
Italcementi Fabbriche Riunite NCNV 775 3,758
Lafarge SA 323 31,392
Pioneer International Ltd. 4,710 11,501
RMC Group Plc 1,575 23,817
Sumitomo Forestry Co. Ltd. 1,000 7,536
Sumitomo Osaka Cement Co. Ltd. 4,000 8,876
Tarmac Plc 5,299 10,102
Toto Ltd. 4,000 32,892
Weinerberger Baustoffindustrie 66 12,620
------
283,325
Business & Public Services - 3.09%
Adecco SA 60 30,242
Autopistas Concesionaria Espanol 1,338 16,905
BAA Plc 4,114 43,018
Brambles Industries Ltd. 1,115 32,764
Cap Gemini Sogeti 216 33,018
Dai Nippon Printing Co. Ltd. 3,000 47,530
Flughafen Wein AG 163 7,074
Mayne Nickless Ltd. 1,820 6,335
Railtrack Group Plc 1,864 38,922
Rentokil Initial Plc 10,084 59,170
Reuters Group 2,596 35,184
SAP AG 100 32,009
SECOM Co. Ltd. 1,000 97,639
Securitas AB 800 11,853
Soc. Gen. de Aguas de Barcelona 241 13,621
Sodexho Alliance SA 101 16,570
Suez Lyonnaise des Eaux 423 71,944
Thames Water Plc 1,823 25,177
Toppan Printing Co. Ltd. 2,000 24,050
United Utilities Plc 2,510 28,305
Vedior NV 249 5,603
Vivendi SA 467 109,077
-------
786,009
Chemicals - 3.85%
Aga AB 400 5,286
Akzo Nobel NV 1,149 51,890
Asahi Chemical Industry Co. Ltd. 11,000 64,018
BASF AG 1,800 78,818
Bayer AG 2,100 89,181
BOC Group Plc 2,165 34,201
Cin Corporacao Industrial Norte 34 1,063
Imperial Chemical Industries Plc 2,729 29,633
L'Air Liquide 272 41,952
Lenzing AG 28 1,538
Mitsubishi Chemical Corp. 11,000 33,989
Novartis AG 190 278,082
Orica Ltd. 1,476 8,591
Rhone Poulenc SA 1,110 52,767
Shin-Etsu Chemical Co. Ltd. 1,000 31,820
Showa Denko KK 3,000 3,693
Sumitomo Chemical Co. Ltd. 13,000 58,022
Teijin Ltd. 8,000 33,629
Toray Industries, Inc. 11,000 58,307
Ube Industries Ltd. 6,000 12,209
Wesfarmers Ltd. 949 9,828
-----
978,520
Construction & Housing - 1.17%
Acs Actividades de Construccion 310 9,307
Aoki Corporation 7,000 4,572
Bau Holdings AG 36 1,179
Bilfinger & Berger Bauaktienge 200 4,807
Bouygues 83 21,096
Daiwa House Industry Co. Ltd. 4,000 47,731
Dragados Y Construcciones 296 9,881
Drott AB 300 2,489
Engil SGPS 96 532
Fomento de Construcciones Y Contra 236 14,410
Hazama Corporation 4,000 3,350
Hochtief AG 350 13,496
Impregilo SpA 1,437 1,233
Kajima Corporation 8,000 24,117
Kumagai Gumi Co. Ltd. 13,000 15,023
Leighton Holdings Ltd. 1,393 5,254
Penta-Ocean Construction Co. Ltd. 4,000 7,603
Sekisui House Ltd. 4,000 44,783
Shimizu Corporation 6,000 23,514
Sirti SpA 626 3,578
Skanska/Frueher AB 400 15,859
Taisei Corporation 8,000 17,953
Taylor Woodrow Plc 2,018 6,330
-----
298,096
Data Processing & Reproduction - 1.16%
Canon, Inc. 4,000 97,806
Fujitsu Ltd. 9,000 154,120
Getronics NV 148 6,074
OCE NV 313 9,192
Olivetti & Co. SpA* 6,651 23,186
Wm-Data Nordik AB 100 3,674
-----
294,053
Electrical & Electronics - 3.01%
ABB AB Ser A 2,100 29,246
ABB AB Ser B 800 11,141
Alcatel 571 70,092
Dassault Systemes SA 341 12,547
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Electrical & Electronics - continued
L M Ericsson Telefon AB 2,700 $70,884
General Electric Plc 10,330 109,346
Hitachi Ltd. 19,000 138,737
Johnson Electric Holdings Ltd. 2,500 7,467
Legrand SA 85 20,293
Misys Plc 1,038 9,652
Mitsubishi Electric Corp. 10,000 34,919
NEC Corporation 7,000 83,587
Sagem SA 9 5,039
Schneider SA 513 33,464
Siemens AG 1,750 129,409
-------
765,824
Electronic Components & Instruments - 1.38%
Creative Technology Ltd. 750 9,418
Fanuc Ltd. 1,300 56,607
Kyocera Corporation 1,100 65,307
Murata Manufacturing Co. Ltd. 3,000 171,579
Taiyo Yuden Co. Ltd. 2,000 26,629
Venture Manufacturing, Singapore 2,000 10,965
Yokogawa Electric Corp. 2,000 10,819
------
351,324
Energy Sources - 6.75%
BP Amoco Plc 30,713 583,014
Broken Hill Proprietary Co. Ltd. 8,129 91,901
Burmah Castrol Plc 1,274 21,520
Elf Aquitaine SA 825 128,115
Ente Nazionale Idrocarburi SpA 27,601 181,652
Japan Energy Corp. 8,000 10,451
Nippon Mitsubishi Oil Corp. 12,000 53,559
OMV AG 205 19,815
Repsol SA 4,899 79,700
Royal Dutch Petroleum Co. NV 7,418 431,784
Santos Ltd. 3,076 10,585
Total SA 768 105,146
-------
1,717,243
Financial Services - 1.79%
Acom Co. Ltd. 600 44,967
AMP Limited 4,780 55,830
Credit Saison Co. Ltd. 700 14,302
Daiwa Securities Group, Inc. 5,000 30,564
ING Groep NV 3,177 195,665
Nomura Securities Co. Ltd. 7,000 75,498
Orix Corporation 200 16,094
Schroder Plc 400 9,556
St. James Place Capital 3,056 13,569
------
456,047
Food & Household Products - 3.13%
Ajinomoto Co., Inc. 4,000 46,257
Associated British Foods Plc 2,627 18,975
Azucarera Ebro Agricolas 165 2,913
Cadbury Schweppes Plc 3,824 50,997
Eridania Beghin-Say SA 128 17,754
Goodman Fielder Wattie Ltd. 6,054 5,849
Groupe Danone 186 49,712
Jeronimo Martins Sgps. SA 565 18,592
KAO Corporation 2,000 50,745
Nestle SA 120 222,036
Nippon Meat Packers, Inc. 2,000 26,846
Parmalat Finanziaria SpA 6,071 8,786
Tate & Lyle Plc 2,741 18,850
Unilever NV 2,251 154,092
Unilever Plc 11,655 103,590
-------
795,996
Forest Products & Paper - 0.39%
Amcor Ltd. 3,318 17,871
Arjo Wiggins Appleton Plc 3,674 11,230
Buhrmann NV 306 5,609
Cartiere Burgo SpA 298 2,125
Investimentos Participacoes 119 972
Oji Paper Co. Ltd. 5,000 29,936
Portucel Industrial SA 660 3,737
Reno de Medici SpA 418 1,020
Rexam Plc 2,449 9,554
Svenska Cellulosa AB 700 17,880
------
99,932
Gold Mines - 0.03%
Normandy Mining Ltd. 9,863 8,550
-----
Health & Personal Care - 6.41%
Astrazeneca Plc 3,302 129,399
Chugai Pharmaceutical Co. Ltd. 2,000 23,782
Cie Generale de Optique Essilor 40 13,184
CSL Ltd. 541 4,296
Faulding & Co. Ltd. 625 3,516
Glaxo Wellcome Plc 25p Ords 11,015 326,399
Kyowa Hakko Kogyo Company 4,000 23,145
L'Oreal 195 124,835
Merck KGAA 700 23,663
Roche Holding AG CHF100 Ords 5 88,123
Roche Holding CHF Genusschein NPV 21 246,929
Sankyo Co. Ltd. 2,000 41,953
Sanofi SA 321 50,289
Schering AG 250 28,853
Shiseido Co. Ltd. 1,000 15,743
Smithkline Beecham Plc 19,071 252,186
Taisho Pharmaceutical Co. Ltd. 2,000 61,464
Takeda Chemical Industries Ltd. 4,000 173,840
-------
1,631,598
Industrial Components - 1.44%
BICC Plc 2,652 4,480
Bridgestone Corporation 4,000 107,185
Continental AG 350 8,689
Denso Corporation 1,000 20,306
Fag Kugelfischer Georg Schaefer 500 4,859
Furukawa Electric Co. Ltd. 4,000 17,485
Magnetti Marelli SpA 1,635 2,314
Michelin 637 28,902
NGK Insulators Ltd. 4,000 48,736
Pirelli SpA 7,673 23,426
SKF AB 300 5,156
Sumitomo Electric Industries 6,000 72,601
Valeo SA 265 22,396
------
366,534
Insurance - 5.97%
Aegon NV 1,920 184,067
Allianz AG 800 254,804
Allied Zurich Plc 5,608 74,338
Amb Aachener Und Muenchener Bete 100 10,670
Assicurazione Generali SpA 3,426 133,369
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Insurance - continued
Axa Colonia Konzern AG 100 $9,508
Axa 979 126,381
CGU Plc 3,561 55,625
Cie De Seguros Tranquilidad SA 65 1,665
Corporacion Mapfre Cia International 372 7,561
Generali Holding, Vienna 54 11,038
Gio Australia Holdings Ltd. 3,378 10,037
Istituto Nazionale delle Assicuratrice 13,699 36,179
Legal & General Group Plc 19,432 55,409
Muenchener Rueckversicherungs 450 90,322
Prudential Corporation Plc 7,131 101,409
QBE Insurance Group Ltd. 2,017 9,023
Riunione Adriatica de Sicurta 1,674 17,596
Royal & Sun Alliance Insurance 4,607 39,836
Sai Sta Assicuratrice Industrial 477 5,870
Skandia Forsakring AB 1,500 28,980
Swiss Ruckversicher 45 98,453
Tokio Marine & Fire Insurance Co. 5,000 58,240
Unione Immobiliare SpA 15,287 8,753
Zurich Allied AG 140 90,201
------
1,519,332
Leisure & Tourism - 0.85%
Accor SA 112 29,520
Compass Group Plc 2,599 26,758
Granada Group Plc 3,365 71,780
Hongkong & Shanghai Hotels Ltd. 4,500 3,977
Hotel Properties Ltd. 3,000 2,317
Ladbroke Group Plc 5,700 27,394
Overseas Union Enterprise Ltd. 1,000 2,240
Rank Group Plc 3,296 13,706
Shangri-La Asia Ltd. 10,000 11,869
Sol Melia SA 165 6,150
Tabcorp Holdings Ltd. 1,662 13,517
Telepizza SA 1,144 7,251
-----
216,480
Machinery & Engineering - 1.76%
Atlas Copco AB Ser A 400 10,762
Atlas Copco AB Ser B 100 2,631
BWT (Benckiser) AG 13 2,578
Daikin Industries Ltd. 2,000 20,868
Deutz AG * 200 1,542
Ebara Corporation 2,000 24,301
GKN Plc 3,056 52,161
Komatsu Ltd. 5,000 29,769
Kubota Ltd. 8,000 22,710
Linde AG 50 30,900
Mannesmann AG 750 98,721
Mitsubishi Heavy Industries Ltd. 15,000 65,693
Mitsui Engineering & Shipbuilding Co. 8,000 9,714
Sembcorp Industries Ltd. 12,000 14,927
SMC Corporation 400 36,878
Stork NV 162 3,457
Sulzer AG 10 6,351
Va Technolocies AG 115 10,934
Zardoya Otis SA 124 3,196
-----
448,091
Merchandising 3.63%
Ahold NV 2,014 74,785
Boots Company Plc 3,695 49,039
Carrefour 114 90,322
Casino Guichard Perrachon 227 $22,350
Coles Myer Ltd. 5,572 29,605
Daiei, Inc. 5,000 15,785
Great Universal Stores Plc 3,813 43,797
Hennes & Mauritz AB 500 43,084
Ito-Yokado Company Ltd. 2,000 122,760
Jusco Company Ltd. 1,000 19,930
Karstadt AG 50 22,475
Kingfisher Plc 5,615 83,825
Marks & Spencer Plc 10,297 70,607
Marui Company Ltd. 1,000 16,589
Mitsukoshi Ltd. 2,000 5,761
Mycal Corporation 1,000 6,197
Pinault-Printemps Redoute 350 58,049
Promodes 56 35,495
Rinascente Per L'Esercizio 737 6,267
Safeway Plc 3,959 16,495
J. Sainsbury Plc 6,861 43,570
Tesco Plc 7,658 22,760
Valora Holding AG 20 4,667
Woolworths Ltd. 5,787 18,382
------
922,595
Metals - Non-Ferrous - 0.64%
Mitsubishi Materials Corporation 8,000 19,226
Nippon Light Metal Company Ltd. 4,000 6,063
North Ltd. 3,459 7,325
Pechiney SA 266 11,240
Rio Tinto Plc 4,070 71,039
Straits Trading Company Ltd. 2,000 2,370
Sumitomo Metal Mining Company Ltd. 1,000 4,539
WMC Ltd. 9,182 39,678
------
161,479
Metals - Steel - 0.90%
Acerinox SA 381 11,499
Boehler-Uddeholm 85 4,996
British Steel Plc 10,171 24,093
Kawasaki Steel Corporation 6,000 11,506
Natsteel Ltd. 3,000 4,528
Nippon Steel Corporation 38,000 85,279
NKK Corporation 20,000 15,910
Sandvik AB Ser A 600 13,512
Sandvik AB Ser B 300 6,774
SSAB Swedish Steel 200 2,548
Sumitomo Metal Industries Ltd. 15,000 19,972
Thyssen Krupp AG 700 15,307
Usinor 854 13,208
------
229,131
Misc Materials & Commodities - 0.52%
Asahi Glass Company Ltd. 5,000 38,268
Caradon Plc 3,813 9,692
Cie de Saint Gobain 295 50,641
Corticeira Amorim Socdad Gestora 158 1,781
Mayr-Melnhof Karton AG 92 4,469
Pilkington Plc 6,448 8,454
Rhi AG 108 3,296
Rio Tinto Ltd. 927 15,612
------
132,213
Multi-Industry - 1.92%
Agiv AG 150 3,272
Alusuisse Lonza Group AG 20 23,923
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Multi-Industry - continued
Corporacion Financiera Alba SA 74 $11,339
Hanson Plc 2,662 26,465
Howard Smith Ltd. 1,007 8,567
Hutchison Whampoa Ltd. 14,000 125,532
Invensys Plc 12,094 61,480
Keppel Corporation Ltd. 7,000 19,973
Lagardere Groupe SCA 424 16,788
Lonmin Plc 992 8,338
Montedison SpA ITL1000 NCVT 4,490 3,391
Montedison SpA ITL1000 Ords 13,590 13,036
Pacific Dunlop Ltd. 5,473 9,598
Preussag AG 500 26,304
SNIA SpA 3,118 4,019
Sonae Investimentos SA 332 11,851
Southcorp Ltd. 3,201 13,133
Swire Pacific Ltd. 5,500 30,867
T.I. Group Plc 2,341 19,583
Viag AG 100 50,813
------
488,272
Real Estate - 1.89%
British Land Company Plc 867 7,950
Cheung Kong Holdings Ltd. 9,000 81,860
City Developments Ltd. 7,000 46,631
First Capital Corporation Ltd. 3,000 3,979
General Property Trust Units 6,762 12,055
Great Portland Estates Plc 2,037 6,947
Hang Lung Development Co. Ltd. 5,000 6,451
Hopewell Holdings Ltd. 5,000 2,742
Hysan Development Co. Ltd. 2,000 3,083
Land Securities Plc 1,402 18,393
Lend Lease Corp. Ltd. 2,695 36,334
MEPC Plc 1,471 10,838
Metrovacesa SA 229 4,996
Mitsubishi Estate Company Ltd. 4,000 40,898
Mitsui Fudosan Company Ltd. 2,000 18,422
New World Development Co. Ltd. 9,000 22,294
Parkway Holdings Ltd. 3,000 7,286
Schroders Property Funds 2,001 3,271
Sino Land Company Ltd. 10,000 5,773
Slough Estates 1,313 7,129
Stockland Trust Group 1,603 3,925
Sun Hung Kai Properties Ltd. 9,000 78,958
United Industrial Corp. Ltd. 11,000 6,939
United Overseas Land Ltd. 5,000 4,775
Vallehermoso SA 772 7,666
Westfield Trust 6,540 14,585
Wharf Holdings Ltd. 7,000 17,159
------
481,338
Recreation - Other Consumer Goods - 0.74%
Adidas SAlomon AG 150 14,768
Casio Computer Company Ltd. 2,000 13,901
EMI Group Plc 2,650 22,541
Fuji Photo Film Company Ltd. 2,000 75,532
Sega Enterprises Ltd. 700 12,456
Shimano, Inc. 1,000 25,456
Ste. BIC 182 10,209
The Swatch Group AG 20 14,262
------
189,126
Telecommunications - 8.78%
British Telecommunications Plc 13,535 226,012
Cable & Wireless Plc 5,330 76,355
Deutsche Telekom AG 4,300 169,436
France Telecom SA 2,951 238,328
Hong Kong Telecommunications Ltd. 41,600 111,903
KPN NV 1,043 43,522
Netcom AB 200 6,424
Nippon Telegraph & Telephone 48 522,526
Portugal Telecom SA 919 38,299
Singapore Telecommunications Ltd. 50,000 92,554
Swisscom AG 130 47,716
Telecom Italia Mobile SpA ITL50 Risp 3,623 12,133
Telecom Italia Mobile SpA ITL50 14,748 87,870
Telecom Italia SpA ITL1000 Ords 8,319 88,497
Telecom Italia SpA ITL1000 Risp 2,209 11,878
Telefonica SA 3,457 161,965
Telstra Corporation Ltd. 24,619 133,591
TNT Post Groep NV 1,674 45,095
Vodafone Group Plc 6,478 119,322
-------
2,233,426
Textiles & Apparel - 0.08%
Benetton Group SpA 5,870 10,542
Toyobo Company Ltd. 6,000 9,546
-----
20,088
Transportation - Airlines - 0.85%
Alitalia Linee Aeree Italiane 4,689 14,514
Austrian Airlines 166 5,312
British Airways Plc 4,045 32,064
Cathay Pacific Airways Ltd. 11,000 17,669
Deutsche Lufthansa AG 1,150 26,605
Japan Airlines Company Ltd. 11,000 34,634
KLM Royal Dutch Air 292 8,853
Sairgroup 50 11,437
Singapore Airlines Ltd. 7,000 64,375
------
215,464
Transportation - Road & Rail - 1.16%
ABB AG 30 43,750
Brisa Auto-Estradas de Portugal 431 18,258
Comfort Group Ltd. 4,000 1,627
East Japan Railway Company 19 112,167
Hankyu Corp. 2,000 8,407
Kinki Nippon Railway Company Ltd. 6,000 30,296
Nippon Express Company Ltd. 4,000 26,126
Odakyu Electric Railway Co. Ltd. 5,000 18,004
Tobu Railway Company Ltd. 6,000 18,339
Tokyu Corporation 7,000 19,285
------
296,260
Transportation - Shipping - 0.29%
Nedlloyd NV 89 2,294
Nippon Yusen 8,000 31,151
Peninsular & Orient Steam Navigation 2,791 40,589
------
74,033
Utilities - Electrical & Gas - 4.47%
Australian Gas Light Company 1,895 13,418
BG Plc 14,630 82,373
Centrica Plc 16,505 33,455
CLP Holdings Ltd. 9,000 48,303
Edison SpA 2,332 20,694
Electricidade de Portugal 4,211 79,183
The accompanying notes are an integral part of the financial statements.
38
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Utilities - Electrical & Gas - continued
Endesa SA 4,797 $106,621
Gas Natural Sdg SA 753 60,734
Hongkong & China Gas Company Ltd. 17,700 24,891
Iberdrola SA 4,540 63,548
Italgas Sta Italiana Per Il Gas 1,573 6,996
Kansai Electric Power Co., Inc. 5,300 104,517
National Power Plc 4,777 38,501
Oesterreichische Elektrizitaets 235 36,742
Osaka Gas Company Ltd. 11,000 37,766
RWE AG 1,350 61,752
Scottish & Southern Energy Plc 2,278 21,401
Scottish Power Plc 4,702 38,728
Tohoku Electric Power Co., Inc. 1,300 19,649
Tokyo Electric Power Co., Inc. 5,200 111,037
Tokyo Gas Company Ltd. 8,000 21,102
Union Electrica Fenosa 1,504 20,003
Veba AG 1,550 84,982
------
1,136,397
Wholesale & International Trade - 1.06%
Hagemeyer NV 284 9,601
Marubeni Corporation 7,000 16,178
Metro AG 1,000 72,258
Mitsubishi Corporation 6,000 39,692
Mitsui & Company 10,000 73,271
Sumitomo Corporation 8,000 59,086
------
270,085
TOTAL COMMON STOCKS
(Cost $23,207,546) $24,667,274
-----------
PREFERRED STOCKS - 0.49%
Automobiles - 0.08%
Fiat SpA 4,422 $7,614
Volkswagen AG 300 12,598
------
20,212
------
Broadcasting & Publishing - 0.26%
News Corporation 8,449 66,042
------
Business & Public Services - 0.15%
SAP AG 100 37,502
------
TOTAL PREFERRED STOCKS $123,757
(Cost $100,571) --------
Principal Value
--------- -----
CONVERTIBLE BONDS - 2.28%
Compass Group
5.75% due 10/05/07 $85,000 $226,304
Finlayson Global, 144A,
Zero Coupon due 02/19/04 260,000 352,943
-------
TOTAL CONVERTIBLE BONDS $579,247
(Cost $510,957) ========
Shares Value
------ -----
RIGHTS & WARRANTS - 0.02%
AGA B Shares, Exp. 06/02/99 400 $0
Telefonica SA, Exp. 05/02/99 5,257 4,887
-----
TOTAL RIGHTS & WARRANTS $4,887
(Cost $0) ======
SHORT TERM INVESTMENTS - 0.26%
Navigator Securities Lending Trust 65,020 $65,020
SSGA Money Market Fund 1,000 1,000
-----
66,020
------
TOTAL INVESTMENTS (International Equity Fund) $25,441,185
(Cost $23,885,094) ===========
- --------------------------------------------------------------------------------
Global Equity Fund
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS - 89.44%
Aerospace & Military Technology- 1.04%
B.F. Goodrich Co. 31,100 $1,236,225
----------
Banking - 7.05%
ABN AMRO Holdings NV 62,500 1,488,864
Bank of Ireland 74,357 1,486,852
Bank One Corp. 28,058 1,655,422
Chase Manhattan Corp. 13,600 1,125,400
Mellon Bank Corp. 18,500 1,374,781
Nordbanken Holding AB 198,150 1,244,749
---------
8,376,068
Beverages & Tobacco - 5.13%
Allied Domecq Plc 130,800 1,018,423
Imperial Tobacco, Ltd. 77,500 766,747
Pernod-Ricard 9,370 632,017
Philip Morris Companies, Inc. 104,900 3,678,056
---------
6,095,243
Broadcasting & Publishing - 2.89%
Houghton Mifflin Co. 45,200 2,017,050
Mediaset 163,000 1,411,984
---------
3,429,034
Chemicals - 4.38%
BASF AG 51,470 2,253,757
Bayer AG 39,600 1,681,705
Potash Corporation of
Saskatchewan, Inc. 20,810 1,267,353
---------
5,202,815
Construction Materials - 4.84%
Blue Circle Industries Plc 113,250 734,207
Cimpor-Cimentos de Portugal SA 30,650 841,845
CSR, Ltd. 344,000 919,673
Holderbank Financier Glarus AG 1,235 1,488,605
Wolseley Plc 196,500 1,759,940
---------
5,744,270
Data Processing & Reproduction - 1.13%
Data General Corp.* 109,500 1,279,781
NCR Corp.* 1,512 61,992
------
1,341,773
Electric Utilities - 4.32%
Iberdrola SA 102,400 1,433,324
Unicom Corp. 53,650 2,082,291
Veba AG 29,400 1,611,919
---------
5,127,534
Electrical & Electronics - 2.22%
GenRad, Inc.* 67,900 1,256,150
Intelidata Technologies Corp.* 119,200 610,900
Hitachi, Ltd 105,000 766,706
-------
2,633,756
The accompanying notes are an integral part of the financial statements.
39
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Energy Equipment & Services - 0.76%
Noble Drilling Corp.* 46,110 $904,909
--------
Energy Sources - 3.84%
Burmah Castrol Plc 92,585 1,563,885
Elf Aquitaine 15,090 2,343,338
Ocean Energy, Inc.* 70,115 652,946
-------
4,560,169
Engineering & Business Services - 1.32%
Invensys Plc 100,053 508,619
WPP Group Plc 118,900 1,053,922
---------
1,562,541
Financial Services - 4.74%
Enhance Financial Services Group, Inc. 60,600 1,253,662
Finova Group, Inc. 31,005 1,497,929
Int. Nederlanden Groep NV 28,078 1,729,271
UST Corp. 47,200 1,141,650
---------
5,622,512
Food & Household Products - 11.02%
Benckiser Cl. B 14,900 821,647
Bongrain SA 2,850 1,102,232
Danisco 12,400 579,884
Group Danone 8,190 2,188,935
IBP, Inc. 25,450 515,363
KAO Corp. 94,000 2,385,028
Nestle SA 1,600 2,960,477
Reckitt & Colman Plc 213,215 2,531,332
---------
13,084,898
Forest Products - 1.59%
Boise Cascade Corp. 33,800 1,360,450
Georgia Pacific Corp. 5,650 522,625
-------
1,883,075
Health & Personal Care - 1.00%
Daiichi Pharmaceutical Co. 1,000 16,245
Rhone-Poulenc SA 24,700 1,174,189
---------
1,190,434
Home Builders - 0.95%
Green Property Co. 176,000 1,134,151
---------
Household Appliances & Furnishing - 2.11%
Matsushita Electric Ind. Co., Ltd. 72,000 1,368,615
Philips Electronics NV 13,250 1,140,780
---------
2,509,395
Industrial Components - 0.47%
Michelin 12,240 555,358
-------
Insurance - 5.98%
MBIA, Inc. 35,520 2,388,720
Royal Sun Alliance Insurance
Insurance Group Plc 195,952 1,694,350
SCOR 25,350 1,264,004
Sumitomo Marine & Fire 99,000 671,496
Terra Nova (Bermuda) Holdings, Ltd. 48,100 1,079,244
---------
7,097,814
Motor Vehicle Parts - 1.54%
Borg-Warner Automotive, Inc. 32,200 1,827,350
---------
Motor Vehicles - 0.93%
Volkswagen AG 15,630 1,107,924
---------
Multi Industry - 3.45%
Cie Financiere Richemont 1,900 3,230,386
Tenneco, Inc. 32,000 864,000
-------
4,094,386
Non-Ferrous Metals - 0.51%
Alcoa, Inc. 9,700 603,825
-------
Merchandising - 4.59%
Albertsons, Inc. 23,800 1,225,700
American Stores Co. 54,300 1,713,844
BJ's Wholesale Club, Inc.* 67,000 1,779,688
Delhaize Freres SA 8,400 734,747
-------
5,453,979
Recreation & Other Consumer Goods - 2.34%
Fuji Photo Film Co. 43,000 1,623,932
Tupperware Corp. 48,900 1,158,319
---------
2,782,251
Telecommunication Services - 9.30%
BCT Telus Communications Ord 47,249 1,176,283
BCT Telus Communications NV 15,749 387,757
Comsat Corp. 71,670 2,329,275
Nippon Telephone & Telegraph 258 2,808,575
Swisscom AG 1,380 506,522
Telecom Italia SpA 358,600 1,928,220
Telefonica SA* 40,800 1,911,535
---------
11,048,167
TOTAL COMMON STOCKS
(Cost $85,781,967) $106,209,856
------------
RIGHTS & WARRANTS - 0.03%
Telecommunication Services
Telefonica SA (rts.) exp. 5/20/99 40,800 $37,929
TOTAL RIGHTS & WARRANTS (Cost $0) $37,929
-------
SHORT TERM INVESTMENTS - 10.53%
Navigator Securities Lending Trust 12,498,705 $12,498,705
SSGA Money Market Fund 1,000 1,000
-----
$12,499,705
-----------
TOTAL INVESTMENTS
(Global Equity Fund) (Cost $98,281,672) $118,747,490
============
- --------------------------------------------------------------------------------
Emerging Growth
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS - 98.00%
Aerospace & Defense - 1.24%
Tristar Aerospace Co.* 1,100 $11,688
-------
Business Services - 13.31%
Acxiom Corp.* 440 11,110
FYI, Inc.* 500 15,500
Getty Images, Inc.* 600 15,600
INSpire Insurance Solutions, Inc.* 1200 26,100
Iron Mountain, Inc.* 450 12,516
Jones Lang Lasalle, Inc.* 300 8,006
Kroll-O'Gara Co.* 500 11,969
Lason Holdings, Inc.* 200 7,913
NOVA Corporation* 214 5,564
QRS Corp.* 200 11,000
------
125,278
The accompanying notes are an integral part of the financial statements.
40
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Communications & Media - 11.19%
Digital River, Inc.* 200 $7,725
Entercom Communications Corp.* 200 7,425
Granite Broadcasting Corp.* 700 5,294
Heftel Broadcasting Corp.* 200 10,875
Infoseek Corp.* 100 5,106
InfoSpace.com, Inc. 100 14,331
Metro Networks, Inc.* 200 9,000
Network Event Theater, Inc.* 700 10,281
Outdoor Systems, Inc.* 300 7,556
Playboy Enterprises, Inc.* 400 12,875
VerticalNet, Inc.* 100 11,350
Xoom.com, Inc.* 50 3,500
-----
105,318
Computers - 10.65%
Adaptec, Inc.* 500 12,031
Business Objects SA 500 11,719
Emulex Corp.* 300 13,237
Legato Systems, Inc.* 200 8,087
Mercury Interactive Corp. 300 8,456
National Instruments Corp.* 300 10,200
Radiant Systems, Inc.* 1,300 14,788
Remedy Corp.* 500 8,750
Transaction Systems Architects, Inc.* 400 12,975
------
100,243
Consumer Non-Durables - 1.04%
Central Garden & Pet Co. * 700 9,800
-----
Consumer Services - 3.39%
DeVry, Inc.* 500 13,187
ITT Eucational Services, Inc. 200 4,912
Strayer Education, Inc.* 400 13,850
------
31,949
Drugs & Health Care - 12.17%
Accredo Health, Inc.* 500 11,063
Alkermes, Inc.* 400 10,700
Advanced Paradigm, Inc.* 300 15,750
ChiRex, Inc.* 500 13,000
Hanger Orthopedic Group, Inc.* 800 11,700
Mid Atlantic Medical Services, Inc.* 600 5,475
Minimed, Inc.* 200 12,500
Renal Care Group, Inc.* 400 8,350
Serologicals Corp.* 700 5,250
Sunrise Assisted Living, Inc.* 200 8,000
VWR Scientific Products Corp.* 500 12,812
------
114,600
Electronics - 12.36%
ATMI, Inc.* 500 11,500
Avant! Corp.* 500 6,750
Burr-Brown Corp.* 500 13,250
Cerprobe Corp.* 500 5,625
DII Group, Inc.* 300 9,300
Etec Systems, Inc.* 400 12,350
Novellus Systems, Inc.* 400 18,900
Photronics, Inc.* 600 14,363
Uniphase Corp.* 200 24,275
------
116,313
Energy - 1.08%
Stone Energy Corp.* 300 10,181
------
Environment Services - 1.33%
Casella Waste Systems, Inc.* 500 $12,500
-------
Financial Services - 0.88%
Enhance Financial Services Group, Inc. 400 8,275
-----
Food & Beverages - 1.54%
Ben & Jerry's Homemade, Inc.* 500 14,531
------
Industrial Mfg. & Processing - 1.47%
Advanced Energy Industries, Inc.* 500 13,844
------
Leisure Time - 6.72%
American Classic Voyages Co.* 500 8,937
Coach USA, Inc.* 300 7,125
Fairfield Communities, Inc.* 1,000 12,875
Premier Parks, Inc.* 400 13,825
Sunterra Corp.* 800 8,600
Vistana, Inc.* 800 11,900
------
63,262
Lodgings & Restaurants - 2.17%
Foodmaker, Inc.* 400 9,650
NPC International, Inc.* 600 10,800
------
20,450
Petroleum Services - 4.79%
BJ Services Company* 600 16,050
Cooper Cameron Corp.* 100 3,863
Petroleum Geo Services, Inc.* 700 11,725
Smith International, Inc.* 300 13,462
------
45,100
Retail Trade - 1.59%
99 Cents Only Stores* 150 7,069
Value America, Inc.* 200 7,888
-----
14,957
Telecommunication Services - 8.41%
Concentric Network Corporation* 200 16,700
Exodus Communications, Inc.* 100 9,013
Gilat Satellite Networks, Ltd.* 200 10,400
Harmonic Lightwaves, Inc.* 200 9,125
Powerwave Technologies, Inc.* 400 12,150
Stanford Telecommunications, Inc.* 700 12,600
Viatel, Inc.* 200 9,200
-----
79,188
Transportation - 2.67%
Mark VII, Inc.* 400 5,700
Swift Transportation, Inc. 450 8,269
Varlen Corp. 400 11,200
------
25,169
TOTAL COMMON STOCKS
(Cost $821,120) $922,646
--------
SHORT TERM INVESTMENTS - 2.00%
SSGA Money Market Fund 18,800 $18,800
-------
TOTAL INVESTMENTS (Emerging Growth Fund)
(Cost $839,920) $941,446
========
- --------------------------------------------------------------------------------
Small/Mid Cap Fund
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS - 75.46%
Advertising - 1.17%
Young & Rubicam, Inc.* 15,500 $617,094
--------
The accompanying notes are an integral part of the financial statements.
41
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Air Travel - 0.49%
Skywest, Inc. 10,000 $260,000
--------
Apparel & Textiles - 1.84%
Tommy Hilfiger Corp.* 13,900 971,262
-------
Banking - 1.40%
Golden State Bancorp, Inc.* 30,000 736,875
-------
Broadcasting - 2.92%
Broadcast Communications, Inc.* 7,000 897,750
Jacor Communications, Inc.* 3,800 304,950
Jones Intercable, Inc.* 7,200 333,900
-------
1,536,600
Business Services - 8.18%
Catalina Marketing Corp.* 4,700 401,556
Cintas Corp. 3,000 206,250
DST Systems, Inc.* 7,000 407,750
DuPont Photomasks, Inc.* 5,000 218,750
Excite, Inc.* 8,000 1,168,000
Fiserv, Inc.* 21,100 1,235,669
Siebel Systems, Inc.* 17,400 668,813
-------
4,306,788
Computer Peripherals - 3.28%
Learning Company, Inc.* 13,500 418,500
Microchip Technology, Inc.* 37,300 1,305,500
---------
1,724,000
Computers & Business Equipment - 2.81%
Ceridian Corp. * 12,000 439,500
Quantum Corp.* 58,100 1,038,537
---------
1,478,037
Drugs & Health Care - 9.98%
Agouron Pharmaceuticals, Inc.* 20,000 1,181,250
Amerisource Health Corp.* 28,000 775,250
Biogen, Inc.* 9,400 893,588
Biomet, Inc. 27,300 1,119,300
Forest Laboratories, Inc.* 28,800 1,281,600
---------
5,250,988
Electronic Components - 1.53%
ASM Lithography Holdings NV* 5,000 195,000
Linear Technology Corp. 3,800 216,125
Xilinx, Inc.* 8,600 392,375
-------
803,500
Electronics - 5.97%
Altera Corp.* 9,800 708,050
Jabil Circuit, Inc.* 9,500 442,344
Maxim Integrated Products, Inc.* 3,600 201,600
Rambus, Inc.* 15,600 937,950
Sanmina Corp. * 12,800 849,600
-------
3,139,544
Financial Services - 4.75%
Charter One Financial, Inc. 28,100 878,125
Dime Bancorp, Inc. 36,700 846,394
Legg Mason, Inc.* 7,500 261,563
Paine Webber Group, Inc. 11,000 516,312
-------
2,502,394
Homebuilders - 0.79%
Champion Enterprises, Inc. * 22,500 417,656
-------
Household Appliances & Furnishing - 0.26%
Furniture Brands International, Inc.* 5,400 135,337
-------
Household Products - 0.77%
Dial Corporation 12,000 $408,000
--------
Leisure Time - 0.63%
Coach USA, Inc.* 13,900 330,125
-------
Manufacturing - 3.08%
Sealed Air Corp.* 7,700 468,256
Teradyne, Inc.* 24,400 1,151,375
---------
1,619,631
Packaged Foods & Products - 2.38%
U.S. Foodservice, Inc.* 28,800 1,253,462
---------
Restaurants & Lodging - 6.60%
Outback Steakhouse, Inc.* 38,250 1,369,828
Papa John's Int'l., Inc.* 11,700 470,194
Starbucks Corp.* 44,200 1,632,638
---------
3,472,660
Retail Trade - 14.16%
Abercrombie & Fitch Co.* 5300 504,162
BJ's Wholesale Club, Inc.* 34,000 903,125
Bed, Bath & Beyond, Inc.* 41,100 1,466,756
Best Buy Company, Inc.* 4,300 205,325
Family Dollar Stores, Inc. 39,000 940,875
Gucci Group NV 17,800 1,342,788
Linens 'N Things, Inc.* 19,400 887,550
Office Depot, Inc.* 10,700 235,400
Tiffany & Company 5,500 462,000
Williams Sonoma, Inc.* 17,400 504,600
-------
7,452,581
Telecommunications - 2.47%
Cnet, Inc.* 8,400 1,079,400
Frontier Corp. 4,000 220,750
-------
1,300,150
TOTAL COMMON STOCKS
(Cost $36,135,307) $39,716,684
-----------
Principal Value
--------- -----
SHORT TERM INVESTMENTS - 24.54%
Anheuser Busch, Inc. $800,000 $799,062
Ford Motor Credit Co. 800,000 798,841
General Electric Capital Corp. 800,000 798,846
National Australia Funding 700,000 698,887
United Parcel Service 700,000 698,906
Shares
------
Navigator Securities Lending 8,163,172 8,163,172
Trust
SSGA Money Market Fund 958,281 958,281
-------
12,915,995
TOTAL INVESTMENTS
(Small/Mid Cap Fund) (Cost $49,051,302) $52,632,679
===========
- --------------------------------------------------------------------------------
Growth Equity Fund
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS - 89.31%
Banking - 3.62%
Citigroup, Inc. 3,579 269,320
Fifth Third Bancorp 2,779 199,220
Firstar Corporation 6,171 185,516
Northern Trust Corporation 1,949 181,501
State Street Corporation 2,355 206,063
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Banking - continued
US Bancorp Del 4,683 $173,564
Wells Fargo & Company* 7,481 323,086
-------
1,538,267
Broadcasting - 5.54%
Chancellor Media Corporation* 1,688 92,629
Comcast Corporation 8,162 536,141
Mediaone Group, Inc.* 10,413 849,310
TCA Cable TV, Inc. 2,104 104,806
Time Warner, Inc. 11,065 774,550
-------
2,357,436
Business Services - 6.31%
Amazon.com, Inc.* 831 142,984
America Online, Inc.* 5,499 784,982
At Home Corporation* 2,701 388,775
Automatic Data Processing, Inc. 3,817 169,857
Cintas Corporation 2,653 182,394
Computer Sciences Corporation* 4,033 240,216
Devry, Inc.* 6,632 174,919
Fiserv, Inc.* 3,747 219,434
Interpublic Group Companies, Inc. 2,437 189,020
Momentum Business Applications* 22 162
Staples, Inc.* 2,964 88,920
Yahoo, Inc.* 571 99,747
------
2,681,408
Computer Peripherals - 6.16%
E M C Corporation* 5,810 632,927
Intuit* 1,718 147,963
Microsoft Corporation* 19,731 1,604,377
Oracle Corporation* 8,578 232,142
-------
2,617,409
Computers & Business Equipment - 2.16%
Dell Computer Corporation* 18,306 753,978
International Business Machines 563 117,773
Sun Microsystems, Inc.* 768 45,936
------
917,687
Cosmetics - 1.62%
Avon Products, Inc.* 2,411 130,947
Gillette Company 10,702 558,511
-------
689,458
Drugs & Health Care - 13.98%
Amgen, Inc.* 5,868 360,515
Bristol-Myers Squibb Company 7,127 453,010
Eli Lilly & Company 7,612 560,434
IMS Health, Inc. 15,008 450,240
Johnson & Johnson Company 4,030 392,925
Medtronic, Inc. 4,010 288,469
Merck & Company, Inc. 13,454 945,144
Pfizer, Inc. 9,922 1,141,650
Schering Plough Corporation 14,089 680,675
Warner Lambert Company 9,835 668,165
-------
5,941,227
Electrical Equipment - 4.37%
General Elec Company 15,738 1,660,359
Tyco International Ltd. 2,409 195,731
-------
1,856,090
Electronic Components - 4.48%
Intel Corporation 20,302 1,242,229
Motorola, Inc. 2,165 173,471
Perkin Elmer Corporation 1,841 199,058
Solectron Corporation* 5,965 289,303
-------
1,904,060
Entertainment & Recreation - 1.03%
Carnival Corporation 2,003 82,624
Walt Disney Company* 5,847 185,642
Mattel, Inc. 6,503 168,265
-------
436,531
Financial Services - 5.80%
American Express Company 5,230 683,496
Associates First Capital Corp. 6,546 290,070
Federal National Mortgage Assn. 8,581 608,715
Franklin Research, Inc. 5,272 210,880
Marsh & Mclennan Cos., Inc. 5,983 458,073
Robert Half International, Inc.* 7,323 174,837
Charles Schwab Corp. 372 40,827
------
2,466,897
Food & Beverages - 2.10%
Coca-Cola Company 10,449 710,532
Tootsie Roll Industries, Inc. 2,342 97,047
Wm. Wrigley, Jr., Company 948 84,076
------
891,654
Household Products - 1.83%
Clorox Company 758 87,454
Colgate Palmolive Co. 2,707 277,298
Dial Corporation 6,010 204,340
Procter & Gamble Company 2,239 210,046
-------
779,138
Industrial Components - 0.68%
Illinois Tool Works, Inc. 3,766 289,982
-------
Insurance - 3.90%
American International Group, Inc. 5,587 656,123
Berkshire Hathaway, Inc.* 406 1,002,820
---------
1,658,943
Lodging & Restaurants - 0.47%
Mcdonalds Corporation 4,708 199,502
-------
Motor Vehicles - 0.28%
Harley Davidson, Inc. 2,003 119,429
-------
Motor Vehicle Parts - 0.51%
Danaher Corporation 3,249 215,855
-------
Petroleum Services & Equipment - 2.82%
Baker Hughes, Inc.* 10,175 303,978
Halliburton Company 13,316 567,595
Schlumberger Ltd.* 5,143 328,509
-------
1,200,082
Publishing - 1.13%
Gannett, Inc. 5,402 382,529
Mcgraw Hill Companies, Inc. 1,739 96,080
------
478,609
Retail Trade - 8.13%
Abercrombie And Fitch Co.* 1,195 113,674
Bed, Bath & Beyond, Inc.* 2,762 98,569
Best Buy Company, Inc.* 2,924 139,621
Costco Companies, Inc.* 5,225 422,898
Gap, Inc. 5,327 354,578
Home Depot, Inc. 10,813 648,104
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Retail Trade - continued
Kohls Corporation* 3,303 $219,443
Safeway, Inc.* 4,386 236,570
Wal Mart Stores, Inc. 21,496 988,816
Walgreen Company 8,663 232,818
-------
3,455,092
Telecommunications - 11.74%
Airtouch Communications, Inc.* 2,914 272,095
Cisco Systems, Inc.* 10,692 1,219,556
Lucent Technologies, Inc. 17,704 1,064,453
MCI Worldcom, Inc.* 11,809 970,552
Nokia Corporation* 4,104 304,466
Qwest Communications Int'l, Inc.* 6,326 540,478
Tellabs, Inc.* 5,657 619,795
-------
4,991,394
Transportation - 0.65%
Kansas City Southern Industries, Inc. 4,624 275,417
-------
TOTAL COMMON STOCKS
(Cost $31,742,625) $37,961,569
-----------
SHORT TERM INVESTMENTS - 5.89%
Navigator Securities Lending Trust 2,501,536 $2,501,536
SSGA Money Market Fund 1,000 1,000
-----
$2,502,536
----------
REPURCHASE AGREEMENT - 4.80%
Repurchase Agreement with State Street Bank & Trust Co.
dated 04/30/99 at 4.00%, to be repurchased at $2,042,681
on 5/03/99, collateralized by $2,070,000 U.S.,
Treasury Notes 5.625% due 04/30/00 (valued
at $2,141,156, including interest) $2,042,000 $2,042,000
----------
TOTAL INVESTMENTS
(Growth Equity Fund) (Cost $36,287,161) $42,506,105
-----------
- --------------------------------------------------------------------------------
Tax-Sensitive Equity Fund
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS - 97.80%
Apparel & Textiles - 3.76%
Jones Apparel Group, Inc.* 5,500 $181,500
Tommy Hilfiger Corp.* 2,600 181,675
-------
363,175
Banking - 1.97%
Chase Manhattan Corp. 2,300 190,325
-------
Business Services - 10.11%
Interim Services, Inc.* 11,000 191,125
Shared Medi Cal System 3,700 200,956
Stewart Enterprises, Inc. 15,000 298,125
Xerox Corp. 4,900 287,875
-------
978,081
Computer Peripherals - 5.24%
BMC Software, Inc.* 6,200 266,988
Computer Associates International, Inc. 5,600 239,050
-------
506,038
Computers & Business Equipment - 7.43%
Hewlett Packarg Co. 1500 118,312
Sun Microsystems, Inc.* 5,000 299,062
SCI Systems, Inc.* 7,900 300,694
-------
718,068
Containers & Glass - 1.68%
Owens Illinois, Inc.* 5,600 $162,400
--------
Drugs & Health Care - 7.78%
Amgen, Inc.* 4,500 276,469
Bristol Myers Squibb Co. 1,000 63,562
Merck & Company, Inc. 1,300 91,325
Schering Plough Corp. 1,700 82,131
Steris Corp.* 5,000 88,750
Watson Pharmaceuticals, Inc.* 3,700 149,850
-------
752,087
Electronic Components - 1.96%
Intel corp. 3,100 189,681
-------
Financial Services - 5.42%
Citigroup, Inc. 2,500 188,125
Federal National Mortgage Assn. 2,500 177,344
Morgan Stanley Dean Witter 1,600 158,700
-------
524,169
Food & Drug Distribution - 4.27%
Rexall Sundown, Inc.* 8,000 138,500
Richfood Holdings, Inc. 5,000 62,500
Kroger Co.* 3,900 211,819
-------
412,819
Home Building - 1.78%
Clayton Homes, Inc. 15,500 172,438
-------
Hotels & Casinos - 3.69%
Carnival Group 6,500 268,125
Starwood Hotels & Resorts 2,400 88,050
------
356,175
Household Products - 3.76%
Fort James Corp. 5,000 190,000
Leggett & Platt, Inc. 7,500 172,969
-------
362,969
Industrial Conglomerates - 8.61%
Crane Company 7,000 202,562
Ingersoll Rand Co. 4,500 311,344
United Technologies Corp. 2,200 318,725
-------
832,631
Insurance - 11.39%
Ambac Financial Group, Inc. 3500 211,312
Conseco, Inc. 8,700 274,594
Delphi Financial Group, Inc.* 5,724 178,159
Provident Companies, Inc. 4,000 157,500
Reliastar Financial Group 7,600 279,300
-------
1,100,865
International Oil - 5.85%
BP Amoco Plc 2,500 282,969
Mobil Corp. 2,700 282,825
-------
565,794
Metal Fabrication - 2.20%
Kaydon Corp. 6,300 212,625
-------
Packaged Foods & Products - 1.61%
Universal Foods Corp. 7,400 155,400
-------
Real Estate - 1.79%
Boston Properties, Inc. 1,000 36,313
General Growth Properties, Inc. 1,900 69,944
Prentiss Properties Trust 3,100 67,037
------
173,294
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Retail Trade - 1.88%
Pier 1 Imports, Inc. 11,500 $84,812
Ross Stores, Inc. 2,100 96,469
------
181,281
Technology Systems - 3.23%
American Power Conversion Corp.* 6,900 227,700
Diebold, Inc. 3,500 84,219
------
311,919
Telephone - 2.39%
Bell Atlantic 4,000 230,500
-------
TOTAL COMMON STOCKS
(Cost $8,694,578) $9,452,734
----------
SHORT TERM INVESTMENTS - 0.01%
SSGA Money Market Fund 1,000 $1,000
------
Principal Value
--------- -----
REPURCHASE AGREEMENT - 2.19%
Repurchase Agreement with State Street Bank & Trust
Co. dated 04/30/99 at 4.00%, to be repurchased at
$212,071 on 05/03/99 collateralized by $175,000
U.S. Treasury Bonds, 7.625% due 11/15/22
(valued at $226,181, including interest) $212,000 $212,000
--------
TOTAL INVESTMENTS
(Tax-Sensitive Equity Fund) (Cost $8,907,578) $9,665,734
==========
- --------------------------------------------------------------------------------
Growth and Income Fund
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS - 95.45%
Aerospace & Defense - 1.85%
Boeing Company 52,000 $2,112,500
General Motors Corp.* 22,200 1,229,325
United Technologies Corp. 17,000 2,462,875
---------
5,804,700
Agricultural Machinery - 0.43%
Deere & Company 31,000 1,333,000
---------
Air Travel - 1.08%
AMR Corporation* 44,000 3,071,750
Southwest Airlines Co. 9300 302,831
-------
129,800 3,374,581
Banks - 7.91%
The Chase Manhattan Corp. 28,100 2,325,275
Citigroup, Inc. 137,600 10,354,400
First Union Corp. 73,900 4,092,212
U.S. Bancorp 111,000 4,113,938
Wachovia Corp. 44,900 3,945,588
---------
24,831,413
Business Services - 2.22%
Automatic Data Processing, Inc. 66,000 2,937,000
First Data Corp. 75,200 3,191,300
Service Corporation International 40,900 848,675
-------
6,976,975
Chemicals - 2.28%
The Dow Chemical Co. 17,900 2,348,256
E.I. Du Pont de Nemours & Co. 68,000 4,802,500
---------
7,150,756
Computer Peripherals - 4.08%
Computer Sciences Corp.* 40,000 2,382,500
Microsoft Corp.* 128,000 10,408,000
----------
12,790,500
Computers & Business Equipment - 8.37%
Cisco Systems, Inc.* 51,250 5,845,703
EMC Corp.* 20,000 2,178,750
Hewlett-Packard Company 38,700 3,052,462
International Business Machines Corp. 38,000 7,949,125
Lucent Technologies 52,600 3,162,575
Xerox Corp. 69,600 4,089,000
---------
26,277,615
Drugs & Health Care - 11.96%
Abbott Laboratories 88,000 4,262,500
Astrazeneca Plc 50,400 1,978,200
American Home Products Corp. 72,900 4,446,900
Baxter International, Inc. 47,600 2,998,800
Bristol-Myers Squibb Co. 47,600 3,025,575
Columbia/HCA Healthcare Corp. 99,900 2,466,281
Johnson & Johnson 36,500 3,558,750
Merck & Company, Inc. 44,800 3,147,200
Pfizer, Inc. 31,700 3,647,481
Pharmacia & Upjohn, Inc. 76,400 4,278,400
Warner-Lambert Co. 54,800 3,722,975
---------
37,533,062
Electrical Equipment - 4.42%
General Electric Co. 97,800 10,317,900
Tyco International Ltd. 43,600 3,542,500
---------
13,860,400
Electronic Components - 3.57%
Analog Devices, Inc. 30,000 1,053,750
Intel Corp. 88,000 5,384,500
Motorola, Inc. 35,300 2,828,413
Texas Instruments, Inc. 18,800 1,919,950
---------
11,186,613
Entertainment & Recreation - 0.92%
The Walt Disney Co. 90,600 2,876,550
---------
Financial Services - 5.76%
Associates First Capital Corp. 102,300 4,533,169
Federal National Mortgage Association 63,000 4,469,063
Marsh & McLennan Companies, Inc. 62,000 4,746,875
Merrill Lynch & Co., Inc. 51,600 4,331,175
---------
18,080,282
Food & Beverages - 3.05%
Anheuser-Busch Companies, Inc. 46,400 3,393,000
Coca-Cola Company 27,000 1,836,000
General Mills, Inc. 3,700 270,562
Pepsico, Inc. 44,800 1,654,800
Sara Lee Corp. 108,000 2,403,000
---------
9,557,362
Forest Products - 2.17%
International Paper Co. 33,900 1,807,294
Kimberly Clark Corp. 48,000 2,943,000
Minnesota Mining & Manufacturing Co. 23,000 2,047,000
---------
6,797,294
Hotels & Restaurants - 1.49%
McDonald's Corp. 110,000 4,661,250
---------
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Household Products - 2.64%
Colgate Palmolive Co. 18,000 $1,843,875
Gillette Company 32,800 1,711,750
Procter & Gamble Co. 50,300 4,718,769
---------
8,274,394
Insurance-Property & Casualty - 2.07%
ACE, Ltd. 75,000 2,268,750
American International Group, Inc. 36,000 4,227,750
---------
6,496,500
Motor Vehicle Parts - 0.25%
Eaton Corporation 8,700 797,681
-------
Motor Vehicles - 0.67%
Ford Motor Company 33,000 2,109,937
---------
Newspapers - 1.31%
Gannett, Inc. 58,000 4,107,125
---------
Non-Ferrous Metals - 0.78%
Aluminum Company of America 39,200 2,440,200
---------
Petroleum - 5.99%
Chevron Corp. 39,000 3,890,250
Exxon Corp. 97,100 8,065,369
Royal Dutch Petroleum Co. 88,300 5,182,106
UNOCAL Corp. 40,000 1,662,500
---------
18,800,225
Petroleum Services - 1.44%
Diamond Offshore Drilling, Inc. 32,700 1,081,144
Schlumberger, Ltd. 53,800 3,436,475
---------
4,517,619
Photography - 0.37%
Eastman Kodak Co. 15,700 1,171,612
---------
Railroads & Equipment - 0.68%
Union Pacific Corp. 35,600 2,136,000
---------
Retail Trade - 6.27%
Dayton Hudson Corp. 92,000 6,192,750
The GAP, Inc. 63,000 4,193,437
May Dept Stores 48,300 1,922,944
Wal-Mart Stores, Inc. 160,000 7,360,000
---------
19,669,131
Telecommunication Services - 0.88%
AT & T Corp.* 19,200 1,226,400
Cox Communications, Inc.* 19,300 1,531,937
---------
2,758,337
Utilities-Electric - 1.64%
DPL, Inc. 82,500 1,474,688
GPU, Inc. 34,800 1,326,750
Pinnacle West Capital Corp. 30,000 1,164,375
Texas Utilities Co. 30,000 1,192,500
---------
5,158,313
Utilities-Gas & Pipeline - 0.86%
Enron Corp. 18,100 1,362,025
National Fuel Gas Co. NJ 20,000 875,000
Peoples Energy Corp. 12,700 474,663
-------
2,711,688
Utilities-Telephone - 7.10%
AT & T - Liberty Media 61,500 $3,105,750
Bell Atlantic Corp. 77,192 4,448,189
BellSouth Corp. 42,000 1,879,500
MCI WorldCom, Inc.* 59,000 4,849,063
SBC Communications, Inc. 96,000 5,376,000
U.S. West, Inc. 50,000 2,615,625
---------
22,274,127
Tobacco - 0.95%
Philip Morris Companies, Inc. 85,100 2,983,819
---------
TOTAL COMMON STOCKS
(Cost $176,662,271) $299,499,061
------------
PREFERRED STOCK - 0.43%
Chemicals - 0.43%
Monsanto Corp. 29,500 $1,358,844
----------
TOTAL PREFERRED STOCK $1,358,844
(Cost $1,180,000)
SHORT TERM INVESTMENT - 1.97%
Navigator Securities Lending Trust 6,184,920 $6,184,920
----------
Principal Value
--------- -----
REPURCHASE AGREEMENT - 2.15%
Repurchase Agreement with Lehman Bros. dated
04/30/99 at 4.89% to be repurchased at $6,754,751
on 05/03/99, collateralized by U.S. Treasury Bills,
0.01% due 08/15/09 (valued at
$6,920,137 including interest) $6,752,000 $6,752,000
----------
TOTAL INVESTMENTS $313,794,825
(Growth & Income Fund) (Cost $190,779,191)
- --------------------------------------------------------------------------------
Equity-Income Fund
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS - 99.91%
Banking - 15.65%
Bankamerica Corp. 31,800 $2,289,600
BankBoston Corp. 19,000 931,000
The Chase Manhattan Corp. 17,200 1,423,300
Citigroup, Inc. 32,149 2,419,212
First Union Corp. 114,000 6,312,750
Fleet Financial Group, Inc. 30,600 1,317,712
J.P. Morgan & Company, Inc. 15,600 2,102,100
Mellon Bank Corp. 97,300 7,230,606
---------
24,026,280
Business Services - 6.40%
H & R Block, Inc. 37,000 1,780,625
Pitney Bowes, Inc. 115,000 8,042,813
---------
9,823,438
Chemicals - 2.37%
E.I. Du Pont De Nemours & Co. 51,500 3,637,188
---------
Drugs & Health Care - 16.94%
Abbott Laboratories 12,600 610,312
American Home Products Corp. 125,600 7,661,600
Baxter International, Inc. 55,000 3,465,000
Bristol Myers Squibb Co. 101,000 6,419,813
Pharmacia & Upjohn, Inc. 140,000 7,840,000
---------
25,996,725
The accompanying notes are an integral part of the financial statements.
46
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Electrical Equipment - 1.04%
General Electric Co. 15,100 $1,593,050
----------
Food & Beverages - 9.00%
Anheuser-Busch Companies, Inc. 33,300 2,435,062
General Mills, Inc. 55,100 4,029,188
H.J. Heinz Co. 121,300 5,663,194
Quaker Oats Co. 26,000 1,678,625
---------
13,806,069
Household Products - 2.14%
Avon Products, Inc. 60,400 3,280,475
---------
Insurance - 5.89%
American General Corp. 51,900 3,840,600
Marsh & McLennan Cos., Inc. 67,900 5,198,594
---------
9,039,194
International Oil - 9.58%
BP Amoco Plc 33,133 3,750,241
Chevron Corp. 29,900 2,982,525
Exxon Corp. 27,800 2,309,137
Mobil Corp. 23,600 2,472,100
Texaco, Inc. 50,700 3,181,425
---------
14,695,428
Multi Industry - 3.04%
Minnesota Mining & Manufacturing Co. 52,400 4,663,600
---------
Other Consumer Products - 0.76%
Fortune Brands, Inc. 29,600 1,169,200
---------
Paper - 6.35%
International Paper Co. 19,000 1,012,938
Kimberly-Clark Corp. 108,200 6,634,013
Union Camp Corp. 26,500 2,103,437
---------
9,750,388
Photography - 2.58%
Eastman Kodak Co. 53,000 3,955,125
---------
Retail Trade - 0.51%
May Department Stores Co. 19,800 788,287
-------
Telephone - 15.23%
Alltel Corp. 51,700 3,486,519
American Telephone & Telegraph Corp. 14,700 742,350
Ameritech Corporation 43,000 2,942,813
Bell Atlantic Corp. 112,900 6,505,862
BellSouth Corp. 13,100 586,225
GTE Corp. 33,900 2,269,181
SBC Communications, Inc. 73,468 4,114,208
U.S. West, Inc. 52,100 2,725,481
---------
23,372,639
Tobacco - 2.43%
Philip Morris Companies, Inc. 106,400 3,730,650
---------
TOTAL COMMON STOCKS
(Cost $122,565,303) $153,327,736
------------
Principal Value
--------- -----
REPURCHASE AGREEMENT - 0.09%
Repurchase Agreement with State Street Bank & Trust
Co. dated 04/30/99 at 4.00%, to be repurchased
at $145,048 on 05/03/99, collateralized by $145,000
U.S. Treasury Notes, 6.50% due 08/31/01
(valued at $152,565, including interest) $145,000 $145,000
--------
TOTAL INVESTMENTS
(Equity-Income Fund) (Cost $122,710,303) $153,472,736
============
- --------------------------------------------------------------------------------
Balanced Fund
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS - 54.16%
Aerospace & Defense - 1.17%
Lockheed Martin Corp. 27,100 $1,166,994
----------
Banking - 4.15%
Chase Manhattan Corp. 6,600 546,150
Citigroup, Inc. 47,600 3,581,900
---------
4,128,050
Broadcasting - 0.44%
Time Warner, Inc. 6,300 441,000
-------
Chemicals - 4.33%
Akzo Nobel NV 34,400 1,553,542
Bayer AG 49,800 2,114,871
E.I. DuPont de Nemours & Co. 9,100 642,687
-------
4,311,100
Domestic Oil - 1.79%
Phillips Petroleum Co. 35,200 1,782,000
---------
Drugs & Health Care - 19.31%
Abbott Laboratories 9,500 460,156
Alza Corp.* 64,500 2,164,781
American Home Products 11,900 725,900
Baxter International, Inc. 7,000 441,000
Beckton Dickinson & Co. 24,600 914,812
Bristol Myers Squibb Co. 20,200 1,283,962
Elan Plc* 25,750 1,326,125
Glaxo Wellcome Plc 16,650 969,862
Johnson & Johnson 4,800 468,000
Eli Lilly and Co. 5,375 395,734
Mallinckrodt, Inc. 6,200 217,388
Marck KGAA 43,000 1,453,607
Merck & Company, Inc. 17,900 1,257,475
Novartis AG 400 585,436
Pfizer, Inc. 3,300 379,706
Pharmacia & Upjohn, Inc. 15,300 856,800
Sankyo Co. 25,800 541,191
Schering AG 8,125 937,720
SmithKline Beecham Plc 18,400 1,208,650
SmithKline Beecham Plc, ADR 11,300 149,426
Steris Corp.* 52,900 938,975
Synthelabo 4,600 940,302
Warner Lambert 9,000 611,438
-------
19,228,446
Electric Utilities - 2.02%
Duke Energy Co. 35,900 2,010,400
---------
Electrical Equipment - 0.89%
General Electric Co. 8,400 886,200
-------
Electronics - 1.03%
Intel Corp. 16,700 1,021,831
---------
Food & Beverages - 3..00%
Albertson's, Inc. 12,000 618,000
Coca Cola Co. 8,100 550,800
The accompanying notes are an integral part of the financial statements.
47
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Food & Beverages - continued%
Hershey Food Corp. 3,100 $163,137
Nestle SA 500 925,149
Pepsico, Inc. 19,900 735,056
-------
2,992,142
Gas & Pipeline Utilities - 1.07%
Coastal Corp. 27,800 1,063,350
---------
Household Products - 1.29%
Colgate Palmolive Co. 4,800 491,700
Dial Corp. 23,475 798,150
-------
1,289,850
Insurance - 6.88%
Allstate Corp. 37,600 1,367,700
Chubb Corp. 34,175 2,024,869
Cigna Corp. 10,600 924,187
NAC Corp. 19,100 1,040,950
XL Capital, Ltd. 24,600 1,492,913
---------
6,850,619
Petroleum Services - 0.82%
Conoco, Inc. 30,100 816,462
-------
Precious Metals - 1.97%
Barrick Gold Corp. 52,600 1,058,575
Homestake Mining Co. 57,300 547,931
Placer Dome, Inc. 25,300 357,363
-------
1,963,869
Railroads - 1.29%
Canadian National Railway Co. 20,325 1,283,016
---------
Retail Trade - 0.47%
American Stores Co. 14,700 463,969
-------
Telephone - 2.24%
American Telephone & Telegraph 16,870 851,935
GTE Corp. 20,650 1,382,259
---------
2,234,194
TOTAL COMMON STOCKS
(Cost $51,524,574) $53,933,492
-----------
Principal Value
--------- -----
U.S. TREASURY OBLIGATIONS - 34.00%
U.S. Treasury Notes - 34.00%
4.25% due 11/15/03 $2,600,000 $2,497,222
4.75% due 11/15/08 5,700,000 5,444,355
5.375% due 06/30/03 1,000,000 1,004,530
5.50% due 02/28/03 1,000,000 1,008,750
5.50% due 02/15/08 3,400,000 3,425,500
5.625% due 05/15/08 500,000 507,500
5.625% due 04/30/00 1,075,000 1,081,891
5.625% due 05/15/01 1,070,000 1,080,700
5.875% due 02/15/04 650,000 667,167
5.875% due 11/15/05 750,000 771,090
6.25% due 02/15/07 1,580,000 1,663,203
6.25% due 03/30/02 5,150,000 5,301,256
6.625% due 03/31/02 1,600,000 1,661,248
6.625% due 04/30/02 4,530,000 4,706,942
6.875% due 05/15/06 2,800,000 3,041,052
---------
33,862,406
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $33,640,724) $33,862,406
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 1.60%
Federal Home Loan Mortgage Corporation - 1.60%
6.45% due 04/29/09 $1,600,000 $1,590,992
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,599,750) $1,590,992
----------
FOREIGN GOVERNMENT OBLIGATIONS - 2.02%
Ontario Province-2.02%
6.125% due 09/12/07 $1,330,000 $957,452
6.500% due 03/08/29 1,405,000 1,058,688
---------
2,016,140
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $1,884,327) $2,016,140
----------
SHORT TERM INVESTMENTS - 3.45%
Navigator Securities Lending Trust $3,437,871 $3,437,871
SSGA Money Market Fund 1,000 1,000
-----
$3,438,871
REPURCHASE AGREEMENT - 4.77%
Repurchase Agreement with State Street Bank &
Trust Co. dated 4/30/99 at 4.00%, to be repurchased
at $4,756,585 on 05/03/99, collateralized by $4,525,000,
U.S. Treasury Notes, 6.50% due 10/15/06 (valued at
$4,862,325, including interest) $4,755,000 $4,755,000
----------
TOTAL INVESTMENTS $99,596,901
(Balanced Fund) (Cost $96,843,246)
- --------------------------------------------------------------------------------
Strategic Income Fund
- --------------------------------------------------------------------------------
Principal Value
--------- -----
CORPORATE BONDS - 43.15%
Aerospace - 0.34%
B.E. Aerospace, Inc.,
8.00% due 03/01/08 $250,000 $248,125
--------
Banking - 3.37%
Commerzbank,
10.25% due 04/28/00 AUD 940,000 652,245
European Bank Recon. & Development,
10.50% due 01/25/01 400,000 99,911
Korea Development Bank,
9.60% due 12/01/00 PLN 1,000,000 1,014,710
Nordiska Investeringsbanken,
17.75% due 04/15/02 PLN 140,000 41,024
Sudwest LB Capital Markets,
17.50% due 05/05/03 PLN 480,000 147,029
US Bk Natl Assn Minneapolis,
5.70% due 12/15/08 500,000 475,446
-------
2,430,365
Business Services - 2.83%
CSC Holdings, Inc.,
10.50% due 05/15/16 500,000 602,500
Comdisco, Inc.,
6.00% due 01/30/02 400,000 399,632
First Data Corp.,
6.375% due 12/15/07 275,000 275,621
Iron Mountain, Inc.,
10.125% due 10/01/06 500,000 541,250
The accompanying notes are an integral part of the financial statements.
48
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Principal Value
--------- -----
Business Services - continued
United States Leasing Capital Corp.,
8.45% due 01/25/05 $200,000 $222,060
--------
2,041,063
Chemical Products - 0.55%
Revlon Worldwide Corp.,
Series B, zero coupon due 03/15/01 600,000 393,000
-------
Crude Petroleum & Natural Gas - 1.89%
Bellwether Exploration Co.,
10.875% due 04/01/07 250,000 225,625
Benton Oil & Gas Co.,
11.625% due 05/01/03 200,000 154,000
Occidental Petroleum Corp.,
9.25% due 08/01/19 700,000 797,622
United Refining Co.,
10.75% due 06/15/07 250,000 183,750
-------
1,360,997
Drugs & Health Care - 1.42%
Dade International, Inc.,
11.125% 05/01/06 500,000 557,500
Fresenius Medical Care Capital Trust,
9.00% due 12/01/06 250,000 258,750
Prime Medical Services, Inc.,
8.75% due 04/01/08 500,000 466,250
-------
1,282,500
Electronics - 0.91%
Breed Technologies, Inc.,
6.25% due 04/15/08 500,000 150,000
Decisionone Corp.,
9.75% due 08/01/07 500,000 25,625
Protection One, Inc.,
8.125% due 01/15/09, 144A 500,000 482,500
-------
658,125
Energy & Utilities - 0.65%
Costilla Energy, Inc.,
10.25% due 10/01/06 500,000 175,000
High Voltage Engineering Corp.,
10.5% due 08/15/04 250,000 238,125
Transamerican Energy Corp.*,
11.5% due 06/15/02 325,000 56,875
------
470,000
Financial Services - 3.35%
ContiFinancial Corp.,
8.125% due 01/01/08 500,000 380,000
Ford Motor Credit Company,
5.80% due 01/12/09 225,000 214,659
KFW International Finance,
16.30% due 06/24/03 PLN 860,000 257,228
Merrill Lynch & Co., Inc.,
6.00% due 11/15/04 190,000 189,188
Navistar International Corp.,
8.00% due 02/01/08 500,000 517,500
Paine Webber Group, Inc.,
7.00% due 03/01/00 400,000 403,584
TP SA Fin BV,
7.75% due 12/10/08, 144A 450,000 457,817
-------
2,419,976
Food & Beverages - 2.66%
Ameriserve Food Distr, Inc.,
10.125% due 07/15/07 500,000 410,000
Food & Beverages - continued
Dole Foods, Inc.,
6.75% due 07/15/00 $1,000,000 $1,008,680
Stroh Brewery Co.,
11.10% due 07/01/06 500,000 502,500
-------
1,921,180
Hotels & Restaurants - 0.72%
Prime Hospitality Corp.,
9.75% due 04/01/07 500,000 516,250
-------
Industrials - 5.78%
Alvey Systems, Inc.,
11.375% due 01/31/03 375,000 386,250
Berry Plastics Corp.,
12.25% due 04/15/04 650,000 689,812
CFP Holdings, Inc.,
11.625% due 01/15/04 250,000 208,125
Foamex, L.P.,
9.875% due 05/15/07 375,000 338,438
ICG Holdings, Inc.,
Step up to 13.50% due 09/15/05 500,000 456,250
P&L Coal Holdings Corp.,
8.875% due 05/15/08 250,000 259,375
Polymer Group, Inc.,
8.75% due 03/01/08 150,000 150,000
9.00% due 07/01/07 190,000 194,750
Praxair, Inc.,
6.15% due 04/15/03 500,000 497,530
Raytheon Company,
6.15% due 11/01/08 225,000 220,797
Stellex Industries, Inc.,
9.50% due 11/01/07 250,000 225,000
Synthetic Industries, Inc.,
9.25% due 02/15/07 25,000 26,000
Williams Scotsman, Inc.,
9.875% due 06/01/07 500,000 521,875
-------
4,174,202
Insurance - 0.70%
Aetna Services, Inc.,
7.625% due 08/15/26 500,000 508,475
-------
Leisure Time - 1.70%
Harrah's, Inc.,
7.875% due 12/15/05 500,000 505,000
Mohegan Tribal Gaming Authority,
8.75% due 01/01/09, 144A 225,000 233,437
Park Place Entertainment Corp.,
7.875% due 12/15/05 500,000 491,250
-------
1,229,687
Metal & Metal Products - 0.36%
Renco Metals, Inc.,
11.50% due 07/01/03 250,000 261,250
-------
Other - 5.01%
Hines Horticulture, Inc.,
Series B, 11.75% due 10/15/05 325,000 353,843
The Holt Group, Inc.,
9.75% due 01/15/06, 144A 500,000 329,375
Huntsman Corp.,
9.50% due 07/01/07, 144A 350,000 346,500
Kindercare Learning Centre, Inc.,
9.50% due 02/15/09 250,000 265,000
The accompanying notes are an integral part of the financial statements.
49
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Principal Value
--------- -----
Other - continued
La Petite Academy, Inc.,
10.0% due 05/15/08 $375,000 $375,000
LIN Holdings Corp.,
Zero Coupon due 03/01/08 500,000 350,000
SC International Services, Inc.,
9.25% due 09/01/07 500,000 535,000
Service Corporation International, Inc.,
6.00% due 12/15/05 400,000 378,752
United International Holdings, Inc.,
10.75% due 02/15/08 1,000,000 685,000
-------
3,618,470
Pollution Control - 0.68%
Allied Waste Industries, Inc.,
7.875% due 01/01/09 500,000 487,500
-------
Publishing - 1.06%
Big Flowers Press Holdings, Inc.,
8.625% due 12/01/08, 144A 500,000 500,000
Hollinger International, Inc.,
9.25% due 03/15/07 250,000 261,250
-------
761,250
Real Estate - 1.39%
HMH Properties, Inc.,
7.875% due 08/01/08 500,000 482,500
Radnor Holdings Corp.,
10.00% due 12/01/03 500,000 517,500
-------
1,000,000
Retail Trade - 1.71%
Cole National Group, Inc.,
8.625% due 08/15/07 250,000 247,500
Jitney Jungle Stores, Inc.,
12.00% due 03/01/06 250,000 278,125
Musicland Group, Inc.,
9.875% due 03/15/08 250,000 253,750
Staples, Inc.,
7.125% due 08/15/07 450,000 450,747
-------
1,230,122
Steel - 0.60%
Murrin Murrin Holdings,
9.375% due 08/31/07 500,000 430,000
-------
Telecommunication Services - 4.31%
Adelphia Communications Corp.,
9.50% due 02/15/04 46,998 49,348
9.875% due 03/01/07 175,000 191,625
Century Communications Corp.,
8.875% due 01/15/07 175,000 182,875
Step up to due 01/15/08 250,000 118,750
GTE Corp.,
6.94% due 04/15/28 200,000 200,264
International Cabletel, Inc.,
11.50% due 02/01/06 1,000,000 872,500
L3 Communications Corp.,
8.00% due 08/01/08 250,000 254,687
Nextel Communications,
9.95% due 02/15/08 250,000 187,500
9.75% due 08/15/04 400,000 416,000
SFX Broadcasting, Inc.,
10.75% due 05/15/06 164,000 183,680
Telecommunication Services - continued
Telewest Communication Plc,
Step up to 11.00% due 10/01/07 $500,000 $450,000
--------
3,107,229
Transportation - 0.80%
Stena AB,
10.5% due 12/15/05 250,000 260,625
TFM SA de CV,
Step up to 11.75% due 06/15/09 500,000 318,750
-------
579,375
TOTAL CORPORATE BONDS
(Cost $33,100,329) $31,129,141
-----------
U.S. TREASURY OBLIGATIONS - 1.95%
U.S. Treasury Bonds - 1.14%
5.25% due 02/15/29 $370,000 $347,338
5.50% due 08/15/28 280,000 266,832
6.125% due 11/15/27 200,000 207,032
-------
821,202
U.S. Treasury Notes - 0.81%
5.250% due 08/15/03 200,000 199,906
5.625% due 05/15/08 180,000 182,700
6.375% due 03/31/01 200,000 204,594
-------
587,200
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,473,911) $1,408,402
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 7.26%
Federal Home Loan Banks - 0.63%
5.89% due 07/24/00 $450,000 $453,375
Federal Home Loan Mortgage Corporation - 1.97%
6.50% due 12/01/99** 700,000 696,059
8.50% due 05/01/08 351,246 366,754
10.00% due 05/15/20 328,765 357,223
-------
1,420,036
Government National Mortgage Association - 1.05%
7.50% due 07/15/27 312,054 321,610
7.50% due 10/15/27 346,318 356,923
7.50% due 10/15/27 77,348 79,717
------
758,250
Federal National Mortgage Association - 0.09%
13.00% due 11/15/15 56,801 67,025
------
Federal National Mortgage Association - Interest Only - 1.42%
Interest Only due 03/17/20, REMIC 6,230,832 151,864
Interest Only due 10/17/36, REMIC 12,692,601 335,973
Interest Only due 02/25/35, REMIC 6,485,550 482,713
11.565% due 06/15/21 222,408 57,596
------
1,028,146
Federal National Mortgage Association - CMO - 1.46%
8.80% due 01/25/19, REMIC 440,928 470,827
10.40% due 04/25/19, REMIC 78,186 85,076
7.387% due 08/17/03 492,789 495,633
-------
1,051,536
Student Loan Marketing Association - 0.64%
7.20% due 11/09/00 450,000 462,375
-------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (Cost $5,383,701) $5,240,743
----------
The accompanying notes are an integral part of the financial statements.
50
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Principal Value
--------- -----
FIXED INCOME - OTHER - 12.27%
Collateralized Mortgage Obligations - 5.07%
Mid State Trust VI, Class A,
7.34% due 07/01/35 $1,472,881 $1,510,160
Green Tree Financial Corp.,
7.07% due 09/15/07 2,108,952 2,149,149
---------
3,659,309
Commercial Mortgage Backed Securities - 2.80%
Commercial Mortgage Asset Trust,
7.35% due 08/17/13 1,200,000 1,175,916
DLJ Commercial Mortgage Corp.,
Step Up due 05/10/23 9,708,123 428,536
DLJ Commercial Mortgage Corp.,
Step Up due 11/12/31 7,667,512 413,601
-------
2,018,053
Residential Subordinate Securities - 4.40%
First Union Residential Securities,
7.00% due 08/25/28 246,634 231,083
GE Capital Management Services, Inc.
6.75% due 11/25/28 REMIC 994,436 902,759
PNC Mortgage Securities Corp.,
6.734% due 07/25/28 420,680 383,458
6.75% due 05/25/28 346,976 328,510
6.772% due 03/25/29 498,967 480,412
6.838% due 05/25/28 470,791 434,936
6.904% due 04/25/29 449,556 413,951
-------
3,175,109
TOTAL FIXED INCOME - OTHER
(Cost $8,991,018) $8,852,471
----------
FOREIGN GOVERNMENT OBLIGATIONS - 25.93%
Republic of Argentina - 3.55%
11.00% due 12/04/05 $500,000 $495,625
11.375% due01/30/17 2,100,000 2,067,450
---------
2,563,075
Federal Republic of Brazil - 3.55%
5.00% due 04/15/14 3,705,373 2,561,339
---------
National Republic of Bulgaria - 0.94%
5.875% due 07/28/11 1,000,000 675,000
-------
Government of Costa Rica - 0.34%
Series B, 6.25% due 05/21/15 300,000 246,000
-------
Republic of Ecuador - 1.33%
3.75% due 02/27/15 1,611,358 664,685
4.00% due 02/28/25 700,000 296,625
-------
961,310
Federal Republic of Germany - 0.46%
5.625% due 01/04/28 280,000 330,696
-------
EUR
Republic of Greece - 1.58%
7.60% due 01/22/02 GRD 69,000,000 227,015
8.70% due 04/08/05 GRD 28,900,000 105,257
8.90% due 04/01/03 GRD 145,200,000 508,671
11.00% due 02/25/00 GRD 90,400,000 299,622
-------
1,140,565
Ivory Coast - 1.31%
2.00% due 03/31/18 3,000,000 945,000
-------
Principal Value
Government of Mexico - 3.60%
6.25% due 12/31/19, Series B $1,950,000 $1,543,035
6.25% due 12/31/19, Series W-A 250,000 197,825
10.375% due 02/17/09 800,000 857,000
-------
2,597,860
Government of Morocco - 2.16%
6.062% due 01/01/09 1,904,762 1,554,857
---------
New South Wales Treasury Corp - 0.10%
5.20% due 02/21/07 AUD 100,000 $72,098
-------
Kingdom of Norway - 0.53%
5.20% due 06/16/99 NOK 3,000,000 383,301
-------
Government of Panama - 1.09%
4.00% due 07/17/14 1,000,000 783,800
-------
Government of Peru - 1.50%
Steo-up to 4.50% due 03/07/17 1,600,000 1,080,000
---------
Russia - 0.00%
Vnesheconomobank,
6.625% due 12/15/15 29,467 2,136
Vnesheconomobank,
6.625% due 12/15/15 8,419 631
---
2,767
Republic of Slovenia - 0.51%
5.375% due 05/27/05 EUR 330,000 369,041
-------
Kingdom of Sweden - 0.19%
6.50% due 05/05/08 SEK 1,000,000 139,481
-------
Republic of Venezuela - 3.19%
6.00% due 03/31/07 952,382 746,477
9.25% due 09/15/27 2,200,000 1,556,610
---------
2,303,087
TOTAL FOREIGN GOVERNMENT
OBLIGATIONS (Cost $17,242,003) $18,709,277
-----------
Shares Value
------ -----
PREFERRED STOCK - 0.00%
TCR Holdings-Class B 570 $34
TCR Holdings-Class C 314 18
TCR Holdings-Class D 827 44
TCR Holdings-Class E 1,711 108
---
TOTAL PREFERRED STOCK $204
----
(Cost $204)
RIGHTS & WARRANTS - 0.13%
Crude Petroleum & Natural Gas - 0.04%
Terex Corporation,
Zero Coupon due 05/15/02 2,000 $29,250
Foreign Governments - 0.09%
United Mexican States exp. 02/17/09 800 4,090
United Mexican States due 2003 1,500,000 0
Republic of Argentina exp. 12/03/99 1,900 57,238
------
61,328
Other - 0.00%
BCP Holdings Corp. exp. 04/15/04 500 0
The accompanying notes are an integral part of the financial statements.
51
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
Telephone - 0.00%
Wireless One, Inc. ,
Zero Coupon due 10/19/00 750 $8
In-flight Phone Corp.,
Zero Coupon due 05/15/02 1,000 0
-
TOTAL RIGHTS & WARRANTS (Cost $18,002) $90,586
-------
SHORT TERM INVESTMENT - 5.96%
Navigator Securities Lending Trust 4,299,280 $4,299,280
----------
Principal Value
--------- -----
REPURCHASE AGREEMENT - 3.35%
Repurchase Agreement with State Street Bank
& Trust Co. dated 04/30/99 at 4.85%, to be
repurchased at $2,420,979 on 05/03/99,
collateralized by $1,965,000 U. S. Treasury
Bonds, 7.65% due 11/15/22 (valued at
$2,539,695, including interest) $2,420,000 $2,420,000
----------
TOTAL INVESTMENTS
(Strategic Income Fund) (Cost $73,768,649) $72,150,104
===========
- --------------------------------------------------------------------------------
Investment Quality Bond Fund
- --------------------------------------------------------------------------------
Principal Value
--------- -----
CORPORATE BONDS - 42.44%
Banking - 7.44%
BankAmerica Corp.,
9.50% due 04/01/01 $114,000 $21,527
Credit National,
7.00%, due 11/14/05 150,000 152,363
Export-Import Bank of Korea,
6.375% due 02/15/06 40,000 37,356
First Financial Caribbean Corp.,
7.84% due 10/10/06 135,000 135,907
NBD Bancorp,
8.25% due 11/01/24 300,000 349,173
Republic New York Corp.,
9.75% due 12/01/00 155,000 164,370
Royal Bank of Scotland Group Plc,
6.40% due 04/01/09 150,000 147,924
U.S. Bancorp,
7.50% due 06/01/26 300,000 328,626
Western Financial Savings,
8.875% due 08/01/07 25,000 19,250
------
1,456,496
Broadcasting - 0.16%
Emmis Communications Corp.,
8.125% due 03/15/09, 144A 5,000 5,000
Granite Broadcasting Corp.,
8.875% due 05/15/08 15,000 14,962
Jacor Communications Co.,
8.75% due 06/15/07 10,000 10,650
------
30,612
Building Products - 0.11%
Falcon Building Products, Inc.,
Step-up due 06/15/07 20,000 16,375
Falcon Holding Group LP,
8.375% due 04/15/10 5,000 5,112
-----
21,487
Business Services - 0.07%
AMSC Acquisition, Inc.,
12.25% due 04/01/08 $5,000 $3,700
Iron Mountain, Inc.,
8.75% due 09/30/09 10,000 10,225
------
13,925
Chemical Products - 1.49%
Arco Chemical Co.,
9.80% due 02/01/20 5,000 4,915
Huntsman Corp.,
9.50% due 07/01/07, 144A 10,000 9,850
ICI North America, Inc.,
8.875% due 11/15/06 65,000 71,550
ICI Wilmington, Inc.,
6.95% due 09/15/04 175,000 178,903
Revlon Consumer Products Corp.,
8.625% due 02/01/08 5,000 4,800
Revlon Worldwide Corp.,
Series B, zero coupon due 03/15/01 10,000 6,550
Sovereign Specialty Chemicals,
9.50% due 08/01/07 15,000 15,525
------
292,093
Crude Petroleum & Natural Gas - 1.77%
Conoco, Inc.,
5.90% due 04/15/04 45,000 44,612
Conoco, Inc.,
6.95% due 04/15/29 80,000 78,197
Costilla Energy, Inc.,
10.25% due 10/01/06 20,000 7,200
Cross Timbers Oil Co.,
9.25% due 04/01/07 10,000 10,050
Dailey Petroleum Services Corp.,
9.50% due 02/15/08 25,000 7,813
Energy Corporation of America,
9.50% due 05/15/07 20,000 18,600
Enron Corp.,
6.75% due 09/01/04 100,000 102,335
Kelley Oil & Gas Corp.,
14.00% due 04/15/03, 144A 10,000 10,200
Newfield Exploration Co.,
7.45% due 10/15/07 45,000 42,986
Petroleos Mexicanos,
8.85% due 09/15/07 25,000 23,812
------
345,805
Drugs & Health Care - 2.43%
Allegiance Corp.,
7.00% due 10/15/26 325,000 329,238
Owens & Minor, Inc.,
10.875% due 06/01/06 20,000 21,800
Tenet Healthcare Corp.,
7.875% due 01/15/03 110,000 110,275
Universal Hospital Services, Inc.,
10.25% due 03/01/08 15,000 13,875
------
475,188
Electric Utilities - 0.64%
The Cleveland Electric Illuminating
Company, 7.19% due 07/01/00 125,000 125,943
-------
Financial Services - 7.71%
AAG Holding, Inc.,
6.875% due 06/01/08 100,000 95,863
The accompanying notes are an integral part of the financial statements.
52
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Principal Value
--------- -----
Financial Services - continued
Amerus Capital I,
8.85% due 02/01/27 $100,000 $86,800
Amresco Communications, Inc.,
9.875% due 03/15/05 10,000 8,100
Amvescap Plc,
6.60% due 05/15/05 150,000 147,821
BanPonce Financial Corp.,
6.75% due 08/09/01 250,000 252,235
Beneficial Corp.,
8.40% due 05/15/08 5,000 4,318
EOP Operating LP,
6.50% due 01/15/04 95,000 94,145
Japan Financial Corp.,
9.125% due 10/11/00 200,000 209,414
KFW International Financial, Inc.,
9.125% due 05/15/01 200,000 213,384
Liberty Financial Companies, Inc.,
6.75% due 11/15/08 65,000 65,118
Neenah Corp.,
11.125% due 05/01/07 10,000 10,150
Olympic Financial, Ltd.,
11.5% due 03/15/07 10,000 8,100
Pindo Deli Financial Mauritius, Ltd.,
10.75% due 10/01/07 10,000 6,525
RBF Finance,
11.375% due 03/15/09, 144A 10,000 10,550
Sun Canada Financial Co.,
7.25% due 12/15/15, 144A 200,000 206,322
Tembec Finance Corp.,
9.875% due 09/30/05 10,000 10,662
------
1,509,507
Food & Beverages - 0.50%
B & G Foods Corp.,
9.625% due 08/01/07 10,000 9,975
Del Monte Foods Co.,
Step-up, due 12/15/07 16,000 12,200
Nash Finch Company,
8.50% due 05/01/08 10,000 9,100
Joseph E. Seagram & Sons, Inc.,
7.50% due 12/15/18 65,000 66,260
------
97,535
Homebuilders - 0.05%
Engle Homes, Inc.,
9.25% due 02/01/08 10,000 9,937
-----
Industrials - 8.01%
Abraxas Petroleum Corp.,
11.50% due 11/01/04 10,000 5,775
Accuride Corp.,
9.25% due 02/01/08 10,000 10,200
Acetex Corp.,
9.75% due 10/01/03 10,000 9,450
Acindar Industria, Argentina,
11.25% due 02/15/04 10,000 8,050
Advanced Micro Devices, Inc.,
11.00% due 08/01/03 25,000 26,000
American Pad & Paper Co.,
13.00% due 11/15/05 20,000 12,200
Associates Corp. of North America,
5.75% due 11/01/03 120,000 118,952
Industrials - continued
Beverly Enterprises,
9.00% due 02/15/06 10,000 10,050
Cincinnati Milacron, Inc.,
7.875% due 05/15/00 130,000 130,999
DecisionOne Corp.1,
9.75% due 08/01/07 10,000 513
Dime Capital Trust I,
9.33% due 05/06/27 150,000 160,905
Disco SA,
9.875% due 05/15/08 10,000 8,900
Domtar, Inc.,
9.50% due 08/01/16 10,000 10,717
Duane Reade, Inc.,
9.25% due 02/15/08 25,000 25,938
Dura Operations Corp.,
9.00% due 05/01/09, 144A 5,000 5,062
EchoStar DBS Corp.,
9.375% due 02/01/09, 144A 30,000 31,125
Fairchild Semiconductor Corp.,
10.125% due 03/15/07 10,000 10,100
Fisher Scientific Int'l., Inc.,
9.00% due 02/01/08 10,000 10,125
Frontiervision Holding, L.P.,
Step-up, due 09/15/07 5,000 4,413
Gaylord Container Corp.,
9.375% due 06/15/07 5,000 4,775
Globalstar LP,
10.75% due 11/01/04 25,000 16,250
Grove Worldwide LLC,
9.25% due 05/01/08 15,000 12,450
Grupo Int'l Durango SA,
12.625% due 08/01/03 15,000 15,000
Guitar Center Management Co., Inc.,
11.00% due 07/01/06 17,000 18,084
Iridium Operations LLC,
11.25% due 07/15/05 25,000 7,500
K & F Industries, Inc.,
9.25% due 10/15/07 10,000 10,325
KN Energy, Inc.,
6.65% due 03/01/05 100,000 101,711
LaRoche Industries, Inc.,
9.50% due 09/15/07 5,000 3,675
LDM Technologies, Inc.,
10.75% due 01/15/07 20,000 20,600
Moog, Inc., Series B,
10.00% due 05/01/06 25,000 26,031
MTL, Inc.,
10.0% due 06/15/06 10,000 10,000
Multicanal,
13.125% due 04/15/09, 144A 20,000 20,350
News America Holdings, Inc.,
9.25% due 02/01/13 250,000 299,242
NTL, Inc.,
Step-up due 10/01/08, 144A 20,000 14,100
Pacifica Papers, Inc.,
10.00% due 03/15/09, 144A 5,000 5,188
Packaging Corporation of America,
9.625% due 04/01/09, 144A 5,000 5,188
P&L Coal Holdings Corp.,
9.625% due 05/15/08 35,000 36,312
The accompanying notes are an integral part of the financial statements.
53
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Principal Value
--------- -----
Industrials -- continued
Pioneer Americas Acquisiton Corp.,
9.25% due 06/15/07 $10,000 $8,525
Plains Resources, Inc.,
Series B, 10.25% due 03/15/06 10,000 10,175
Psinet, Inc.,
11.50% due 11/01/08 5,000 5,550
Psinet, Inc.,
10.00% due 02/15/05 20,000 20,950
Repap New Brunswick, Inc.,
10.625% due 04/15/05 25,000 20,250
Rifkin Acquisitions Partners, L.P.,
11.125% due 01/15/06 10,000 11,212
Royster Clark, Inc.,
10.25% due 04/01/09, 144A 10,000 10,150
SCL Aereo Santiago,
6.95% due 07/01/12, 144A 100,000 97,679
Standard Pacific Corp.,
8.50% due 06/15/07 15,000 14,700
Stater Bros. Holdings. Inc.,
9.00% due 07/01/04 5,000 5,050
Sullivan Graphics, Inc.,
12.75% due 08/01/05 20,000 21,200
United Industries Corp.,
9.875% due 04/01/09, 144A 5,000 5,188
Verio, Inc.,
10.375% due 04/01/05 15,000 15,975
Verio, Inc.,
11.25% due 12/01/08, 144A 10,000 11,250
Wesco Distribution, Inc.,
9.125% due 06/01/08 15,000 15,600
YPF SA,
8.00% due 02/15/04 70,000 69,300
------
1,569,009
Insurance - 4.37%
Conseco, Inc.,
6.40% due 02/10/03 100,000 96,315
Conseco, Inc.,
6.80% due 06/15/05 50,000 48,565
Equitable Companies, Inc.,
7.00% due 04/01/28 100,000 100,120
Florida Windstorm Underwriting,
7.125% due 02/25/19, 144A 180,000 181,825
Jackson National Life Insurance Co.,
8.15% due 03/15/27, 144A 100,000 107,798
Ohio National Life Insurance Co.,
8.50% due 05/15/26, 144A 150,000 163,272
Security Benefit Life Co.,
8.75% due 05/15/16, 144A 150,000 157,932
-------
855,827
Leisure Time - 0.42%
Argosy Gaming Co.,
13.25% due 06/01/04 10,000 11,325
Aztar Corp.,
8.875% due 05/15/07, 144A 10,000 10,025
AMC Entertainment, Inc.,
9.50% due 03/15/09 10,000 9,850
Bell Sports, Inc.,
11.00% due 08/15/08 10,000 10,200
Fitzgerald's Gaming Corp.,
12.25% due 12/15/04 5,000 2,125
Loew's Cineplex Entertainment Corp.,
8.875% due 08/01/08 10,000 10,025
Station Casinos, Inc.,
8.875% due 12/01/08, 144A 15,000 15,525
True Temper Sports, Inc.,
10.875% due 012/01/08, 144A 15,000 14,025
------
83,100
Metal Products - 0.03%
Silgan Holdings, Inc.,
9.00% due 06/01/09 5,000 5,150
-----
Office Products - 0.49%
Boise Cascade Office Products Co.,
7.05% due 05/15/05 100,000 95,990
------
Paper - 0.53%
Boise Cascade Corp.,
9.90% due 10/01/01 100,000 104,532
-------
Retail Trade - 0.53%
J.C. Penney, Inc.,
7.40% due 04/01/37 100,000 103,704
-------
Steel - 0.10%
AK Steel Corp.,
7.875% due 02/15/09, 144A 15,000 15,037
Armco, Inc.,
9% due 09/15/07 5,000 5,213
-----
20,250
Telecommunication Services - 3.02%
Adelphia Communications Corp.,
8.375% due 02/01/08 5,000 5,112
Allbritton Communications Co.,
8.875% due 02/01/08 20,000 20,500
Bendek Communications Corp.,
Step-up due 05/15/06 5,000 3,813
BTI Telecommunications Corp.,
10.50% due 09/15/07 20,000 18,650
Charter Communications Holdings,
8.625% due 04/01/09, 144A 15,000 15,356
Century Communications,
Step-up, due 01/15/08 * 35,000 16,625
Concentric Network Corp.,
12.75% due 12/15/07, 144A 10,000 11,363
e.Spire Communications, Inc.,
Step-up, due 04/01/06 * 15,000 10,050
e.Spire Communications, Inc.,
Step-up, due 07/01/08 * 10,000 4,700
GST Telecommunications, Inc.,
Step-up due 11/15/07 * 20,000 21,625
Innova S. de R.L.,
12.875% due 04/01/07 20,000 17,400
Intermedia Communications, Inc.,
8.875% due 11/01/07 25,000 25,125
Intermedia Communications, Inc.,
8.6% due 06/01/08 10,000 9,950
ITC Deltacom, Inc.,
8.875% due 03/01/08 10,000 10,250
ITC Deltacom, Inc.,
9.75% due 11/15/08 5,000 5,325
IXC Communications, Inc.,
The accompanying notes are an integral part of the financial statements.
54
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Principal Value
--------- -----
Telecommunication Services - continued
9.00% due 04/15/08 $20,000 $20,100
KMC Telecom. Holdings, Inc.,
Step-up due 02/15/08, 144A 50,000 28,500
Level 3 Communications, Inc.,
8.00% due 08/01/08 5,000 5,094
Level 3 Communications, Inc.,
9.125% due 05/01/08 5,000 5,112
LIN Holdings Corp.,
Step-up due 03/01/08 * 30,000 21,000
MGC Communications, Inc.,
13.0% due 10/01/04 5,000 4,725
Nextlink Communications, Inc.,
Step-up due 04/15/08 * 30,000 19,350
Paging Network, Inc.,
10.125% due 08/01/07 15,000 12,150
RCN Corporation,
Step-up due 07/01/08 15,000 9,600
RSL Communications Plc,
9.125% due 03/01/08 10,000 9,750
Telecommunications Techniques Co., LLC,
9.75% due 05/15/08 15,000 15,375
Tele-Communications, Inc.,
9.25% due 04/15/02 200,000 218,918
Time Warner Telecommunications, LLC,
9.75% due 07/15/08 10,000 10,800
Viatel, Inc.,
11.25% due 04/15/08 15,000 15,675
------
591,993
Telephone - 2.14%
Classic Cable, Inc.,
9.875% due 08/01/08, 144A 5,000 5,350
MobileMedia Communications, Inc.
9.375% due 11/01/07 /\ 50,000 4,500
Nextel Communications, Inc.,
Step up to 9.75% due 10/31/07 60,000 46,200
U.S. West Capital Funding, Inc.,
6.25% due 07/15/05 150,000 150,933
WorldCom, Inc.,
7.55% due 04/01/04 200,000 212,240
-------
419,223
Transportation - 0.30%
Johnstown American Industries, Inc.,
11.75% due 08/15/05 20,000 21,700
Southern Railway Company,
8.75% due 10/15/03 30,000 32,688
Werner Holding, Inc.,
10.00% due 11/15/07 5,000 5,125
-----
59,513
Utilities - 0.13%
GCI, Inc.,
9.75% due 08/01/07 25,000 25,812
------
TOTAL CORPORATE BONDS
(Cost $8,360,958) $8,312,631
----------
U.S. TREASURY OBLIGATIONS - 22.53%
U.S. Treasury Bonds - 22.53%
7.50% due 11/15/16 $250,000 $292,812
9.25% due 02/15/16 125,000 169,199
11.875% due 11/15/03 250,000 314,883
12.00% due 08/15/13 2,500,000 3,634,375
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $4,493,965) $4,411,269
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 16.10%
Federal Home Loan Mortgage Corp. - 5.36%
6.00% due 11/01/13 - 09/25/22 $768,161 $747,251
6.50% due 06/15/23 100,000 100,375
7.00% due 09/15/21 200,000 201,562
-------
1,049,188
Federal National Mortgage Association - 7.95%
5.50% due 08/01/28 351,149 330,189
6.00% due 11/01/28 295,545 286,401
6.18% due 07/01/08 19,843 19,822
6.25% due 11/25/19 500,000 503,125
6.27% due 11/01/07 54,433 54,713
6.295% due 06/01/08 19,833 19,958
6.30% due 01/01/08 19,749 19,884
6.305% due 02/01/08 197,586 201,309
6.34% due 01/01/0/ 19,622 19,805
6.39% due 01/01/06 19,343 19,568
6.43% due 01/01/08 19,748 20,041
6.981% due 06/01/07 19,595 20,478
7.04% due 03/01/07 19,636 20,581
7.28% due 10/01/06 19,585 20,753
------
1,556,627
Government National Mortgage Association - 2.79%
7.00% due 06/15/23 - 10/15/23 538,693 547,787
-------
TOTAL U.S. GOVERNMENT AGENCY $3,153,602
OBLIGATIONS (Cost $3,108,833) ==========
MUNICIPAL SECURITIES - 1.75%
Other Municipal Securities - 1.75%
Philadelphia, PA, Retirement System
Authority, 5.59% due 04/15/05 $170,000 $166,214
Phoenix, AZ, Civic Improvement
Corp., 6.30% due 07/01/08 125,000 123,364
Southern California Public Power
Authority, 6.93% due 05/15/17 50,000 52,208
------
TOTAL MUNICIPAL SECURITIES $341,786
(Cost $350,856) ========
FIXED INCOME - OTHER - 2.48%
Other Asset Backed Securities - 2.48%
Aesop Funding II LLC,
6.40% due 10/20/03, 144A $100,000 $101,192
First Union Lehman Bros., Series 1997,
Class A2, 6.60% due 05/18/07 200,000 201,100
Continental Airlines,
6.90% due 01/02/18 100,000 101,452
Continental Airlines pass-through,
6.648% due 09/15/17 69,282 68,460
Western Financial Grantor Trust, Series
1995, Class A1, 7.10% due 07/01/00 12,890 12,959
======
TOTAL FIXED INCOME - OTHER $485,163
(Cost $484,510) ========
The accompanying notes are an integral part of the financial statements.
55
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Shares Value
------ -----
PREFERRED STOCKS - 0.28%
Concentric Network, PIK 13.5% 5 $5,462
Fairfield Mfg. Co., Inc., PIK 11.25% 25 25,625
Primedia, Inc., 8.625% 145 14,101
SF Holdings Group, Inc.*, 13.75% 2 7,200
SF Holdings Group, Inc. * 144A 74 $148
Viatel, Inc. 144A, CV 10.0% 7 1,682
TOTAL PREFERRED STOCKS (Cost $63,278) $54,218
-------
WARRANTS - 0.01%
Arch Communications Group,
Rts. Exp. 05/14/99 12,527 0
American Mobile Satellite, 144A,
Exp. 04/01/08 5 151
Concentric Network Corp.*,
Exp. 12/15/07 5 1,421
KMC Telecom. Holdings, Inc.*,
Exp. 04/15/08 50 131
---
TOTAL WARRANTS (Cost $0) $1,703
------
SHORT TERM INVESTMENT - 14.41%
Navigator Securities Lending Trust $2,821,919 $2,821,919
---------- ----------
TOTAL INVESTMENTS (Investment
Quality Bond Fund) (Cost $19,684,319) $19,582,291
===========
- -------------------------------------------------------------------------------
National Municipal Bond Fund
- -------------------------------------------------------------------------------
Principal Value
--------- -----
LONG-TERM INVESTMENTS - 98.05%
Alabama - 1.87%
Alabama Housing Finance Authority
Single Family Mortgage Revenue
Collateralized Home Mortgage Program,
Series B-2, 6.40%, 04/01/25 $275,000 $287,394
--------
California - 6.93%
California Housing Finance Agency
Revenue, Series H, 6.15%, 08/01/16 1,000,000 1,065,200
---------
Florida - 1.64%
Florida State Dept. of Transportation
Right of Way, Series A, 5%,
due 07/01/16 250,000 251,472
-------
Illinois - 8.65%
Illinois Health Facilities Authority
Revenue (Hospital Association
Project), 7.00%, 02/15/22 200,000 220,610
Chicago, Illinois, Water
Revenue, 6.50%, 11/01/15 500,000 594,865
Chicago, Illinois, Skyway Toll Bridging
Revenue, 5.375%, 01/01/16 500,000 514,200
-------
1,329,675
Iowa - 1.09%
Iowa Finance Authority Hospital Facility
Revenue Refunding (Trinity Regional
Hospital Project), 7.00%, 07/01/12 150,000 166,572
-------
Louisiana - 3.36%
Louisiana Public Facilities Authority Hospital
Revenue Refunding (Touro Infirmary
Project), Series B, 6.125%, 08/15/23 500,000 516,920
-------
Maine - 0.17%
Maine State Housing Authority
Mortgage Purchase, Series A-4,
6.375%, 11/15/12 25,000 26,197
------
Massachusetts - 3.53%
Massachusetts State Special Obligation
Revenue, Series A, 5.50%, 06/01/13 500,000 543,000
-------
Michigan - 3.39%
Detroit, Michigan, City School District,
Series C, 5.25%, 05/01/17 500,000 520,165
-------
Missouri - 3.59%
Missouri State Health & Educational
Facilities Authority Revenue,
6.25%, 02/15/11 500,000 552,016
-------
Nevada - 7.78%
Clark County Nevada School District
5.50%, 06/15/11 500,000 541,435
Nevada Housing Division, Single-Family
Program, B-2, 6.95%, 10/01/26 285,000 304,149
Nevada Housing Division, Single-Family
Program, Issue C, 6.35%, 10/01/12 330,000 350,840
-------
1,196,424
New Jersey - 3.68%
New Jersey Economic Development
Authority Water Facilities Revenue
(New Jersey American Water
Company, Incorporated Project),
6.875%, 11/01/34 500,000 566,190
-------
New York - 20.66%
Long Island Power Authority, New
York Electric Systems Revenue,
5.125%, 04/01/12 250,000 258,790
New York State Local Government
Assistance Corporation, Series A,
6.00%, 04/01/16 1,000,000 1,090,880
New York State Dormitory Authority
Revenue, State University Educational
Facilities, Series A, 6.25%, 05/15/08 500,000 555,670
New York State Environmental Facilities
Corporation Pollution Control Revenue
Refunding (IBM Corporation Project),
7.125%, 07/01/12 580,000 612,155
New York State Mortgage Agency
Revenue, Series 40-A, 6.35%,
04/01/21 630,000 658,898
-------
3,176,393
Pennsylvania - 7.23%
Delaware Valley, Pennsylvania,
Regional Finance Authority
Series A, 5.50%, 08/01/28 500,000 536,555
The accompanying notes are an integral part of the financial statements.
56
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Principal Value
--------- -----
Pennsylvania - continued
Philadelphia, Pennsylvania, Water
& Wastewater Revenue,
6.25%, 08/01/12 $500,000 $575,225
--------
1,111,780
South Carolina - 3.46%
Greenville Hospital Systems
Hospital Facilities Revenue,
Series B, 5.70%, 05/01/12 500,000 531,455
-------
Tennessee - 3.25%
Humphreys County, Tennessee, Industrial
Development Board Solid Waste Disposal
Revenue (E.I. Du Pont De Nemours &
Company Project), 6.70%, 05/01/24 450,000 498,758
-------
Texas - 4.44%
Texas State Veterans Housing
Assistance, 6.80%, 12/01/23 75,000 80,354
Port Arthur, Texas, Navy District,
Zero Coupon, 03/01/10 1,000,000 602,550
-------
682,904
Virginia - 2.05%
Virginia State Housing Development
Authority Commonwealth Mortgage,
Subseries I-1, 6.55%, 07/01/17 300,000 315,738
=======
Washington - 3.51%
Washington State General Obligation,
Series C, 5.50%, 07/01/16 500,000 539,975
-------
Wisconsin - 7.77%
Wisconsin Housing & Economic
Development Authority Home Ownership
Revenue, Series D, 6.10%, 07/01/24 115,000 118,053
Wisconsin State Health & Educational
Facilities Authority Revenue, Mercy
Hospital of Janesville, Incorporated,
6.60%, 08/15/22 1,000,000 1,076,940
---------
1,194,993
TOTAL LONG TERM INVESTMENTS
(Cost $14,267,274) $15,073,221
===========
SHORT TERM INVESTMENTS - 1.95%
Louisiana - 1.30%
East Baton Rouge Parish, Louisiana,
Solid Waste Revenue (Exxon Project)
4.35% due 12/01/28 $200,000 $200,000
Virginia - 0.65%
King George County, Virginia, Industrial
Development Authority, Exempt
Facility Revenue (Birchwood Power
Partners), 4.30% due 03/01/27 100,000 100,000
-------
TOTAL SHORT TERM INVESTMENTS
(Cost $300,000) $300,000
--------
TOTAL INVESTMENTS
(National Municipal Bond Fund)
(Cost $14,567,274) $15,373,221
===========
- --------------------------------------------------------------------------------
U.S. Government Securities Fund
- --------------------------------------------------------------------------------
Principal Value
--------- -----
U.S. TREASURY OBLIGATIONS - 6.30%
U.S. Treasury Bonds - 2.06%
5.250% due 02/15/29 $1,000,000 $938,750
6.375% due 08/15/27 800,000 854,376
-------
1,793,126
---------
U.S. Treasury Notes - 4.24%
4.750% due 11/15/08 465,000 444,145
5.625% due 12/31/02 2,000,000 2,026,560
5.750% due 04/30/03 1,200,000 1,221,372
---------
3,692,077
---------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,470,866) $5,485,203
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 76.05%
U.S. Department of Veteran Affairs - 0.60%
7.25% due 10/15/10 REMIC $527,170 $526,838
--------
Federal Home Loan Banks - 1.71%
5.80% due 09/02/08** 1,500,000 1,490,160
---------
Federal Home Loan Mortgage Corporation - 30.58%
6.00% due 12/01/99 - 10/01/28 9,498,228 9,226,056
6.247% due 03/25/21 REMIC** 3,000,000 2,988,150
6.50% TBA** 4,000,000 3,977,480
7.00% due 10/01/12 6,478,736 6,620,426
7.00% due 04/15/21 1,005,812 1,015,870
8.00% due 06/01/08 165,877 171,796
8.25% due 07/01/06 122,627 126,433
8.50% due 05/01/08 157,367 162,585
9.50% due 08/01/20 604,178 643,812
10.0% due 03/01/16 1,544,420 1,672,823
11.75% due 08/01/13 32,431 36,250
------
26,641,681
Federal National Mortgage Association - 37.57%
6.50% TBA** 5,400,000 5,364,522
6.50% due 12/01/03 - 08/01/27 2,167,768 2,158,773
6.527% due 05/25/30 REMIC 2,750,000 2,775,410
6.783% due 01/17/03 REMIC 1,009,480 1,022,724
6.793% due 12/28/28 REMIC 2,340,759 2,311,721
7.00% TBA** 1,000,000 1,013,120
7.00% due 05/01/26 - 03/01/29 12,217,223 13,409,984
8.00% due 08/01/04 29,364 29,702
8.25% due 03/25/06 REMIC 675,000 718,875
8.50% due 08/01/02 55,522 57,236
11.00% due 02/01/15 371 410
11.50% due 04/01/19 191,598 214,507
12.00% due 02/01/16 - 04/01/16 1,223,869 1,423,531
12.50% due 07/01/15 900,868 1,063,024
13.00% due 01/01/99 782,952 923,884
14.50% due 11/01/14 202,064 240,962
-------
32,728,385
Government National Mortgage Association - 5.59%
7.50% TBA** 1,000,000 1,030,620
7.50% due 04/15/02 - 09/15/27 949,255 976,182
7.75% due 04/15/04 44,457 45,682
8.00% due 11/15/06 - 02/15/08 31,355 32,739
9.00% due 03/20/16 - 06/20/17 1,350,897 1,441,548
10.25% due 03/15/01 21,834 22,295
11.00% due 03/15/00 - 09/20/15 26,093 27,596
The accompanying notes are an integral part of the financial statements.
57
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued
(showing percentage of total value of investments)
- --------------------------------------------------------------------------------
Principal Value
--------- -----
Government National Mortgage Association - continued
11.25% due 10/20/15 $9,875 $10,655
11.50% due 08/20/00 - 09/20/15 375,984 418,992
12.50% due 09/15/14 41,179 47,264
13.00% due 01/15/11 - 06/15/15 390,940 450,142
13.25% due 07/15/14 39,637 45,236
13.50% due 11/15/12 - 02/15/13 34,606 40,142
15.00% due 07/15/11 - 09/15/12 77,218 92,616
15.50% due 08/15/11 - 12/15/11 151,165 177,520
16.00% due 11/15/11 9,547 11,539
------
4,870,768
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (Cost $66,543,125) $66,257,832
-----------
REPURCHASE AGREEMENTS - 17.65%
Repurchase Agreement with State Street Bank &
Trust Co.dated 4/30/99 at 4.85%, to be repurchased
at $15,378,213 on 5/03/99, collateralized by
$12,470,000 U.S. Treasury Bonds, 7.625% due
11/15/22 (valued at $16,117,044
including interest) $15,372,000 $15,372,000
-----------
TOTAL INVESTMENTS (U.S. Government
Securities Fund ) (Cost $87,385,991) $87,115,035
===========
- --------------------------------------------------------------------------------
Money Market Fund
- --------------------------------------------------------------------------------
Principal Value
--------- -----
COMMERCIAL PAPER - 47.51%
Anheuser Busch, Inc.,
4.77% due 05/20/99 $1,000,000 $997,482
B P America, Inc.,
4.78% due 07/12/99 1,000,000 990,440
Bank of Montreal,
4.79% due 07/12/99 1,000,000 990,420
Bayer Corp.,
4.80% due 05/07/99 1,000,000 999,200
Walt Disney Co.,
4.74 % due 06/08/99 1,000,000 994,997
Emerson Electric,
4.76% due 05/06/99 1,000,000 999,340
General Electric Capital Corp.,
4.84% due 08/05/99 1,000,000 987,093
Goldman Sachs Group LP,
4.78% due 06/22/99 1,000,000 993,096
J.P. Morgan & Co., Inc.,
4.80% due 07/12/99 1,000,000 990,400
Paccar Financial Corp.,
4.77% due 05/03/99 1,000,000 999,735
Procter & Gamble Co.,
4.82% due 05/27/99 1,000,000 996,519
-------
TOTAL COMMERCIAL PAPER 10,938,722
U.S. GOVERNMENT AGENCY OBLIGATIONS - 42.77%
Student Loan Marketing Association - 13.02%
4.566% due 08/02/99 $3,000,000 $2,998,585
Federal Home Loan Banks - 12.97%
4.69% disc note due 06/02/99 3,000,000 2,987,493
Federal Home Loan Mortgage Corporation - 8.67%
4.74% disc note due 05/17/99 $2,000,000 $1,995,787
Federal National Mortgage Association - 8.11%
4.72% disc note due 09/13/99 1,900,000 1,866,370
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS $9,848,235
U.S. TREASURY OBLIGATIONS - 2.16%
U.S. Treasury Bills - 2.16%
4.375% due 06/10/99 $500,000 $497,569
--------
TOTAL US TREASURY OBLIGATIONS $497,569
REPURCHASE AGREEMENT - 7.56%
Repurchase Agreement with State Street Bank & Trust Co.
dated 04/30/99 at 4.80%, to be repurchased at $1,740,696
on 05/03/99, collateralized by $1,385,000 U.S. Treasury
Bonds, 8.125% due 08/15/99 (valued at
$1,800,196, including interest) $1,740,000 $1,740,000
---------- ----------
TOTAL INVESTMENTS
(Money Market Fund) $23,024,526
================================================================================
Key to Currency Abbreviations
-----------------------------
AUD - Australian Dollar
EUR - Euro Currency
GBP - Great British Pound
GRD - Greek Drachma
HKD - Hong Kong Dollar
ITL - Italian Lira
JPY - Japanese Yen
NOK - Norwegian Krone
PLN - Polish Zloty
SGD - Singapore Dollar
SEK - Swedish Krona
CHF - Swiss Franc
Key to Security Abbreviations and Legend
----------------------------------------
ADR - American Depository Receipt
REMIC Real Estate Mortgage Investment Conduit
TBA - To Be Announced
1 Non-Income producing, issuer is in default of interest payments
/\ - Non-Income producing, issuer is in bankruptcy and
is in default of interest payments
* - Non-Income producing
** - Purchased on a forward commitment (Note 2)
The accompanying notes are an integral part of the financial statements.
58
<PAGE>
NORTH AMERICAN FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. ORGANIZATION OF THE FUND. North American Funds (the "Fund") is an open-end,
diversified management investment company. The Fund is organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended. It is a series company, which means it has several
portfolios, each with a stated investment objective which it pursues through
separate investment policies. As of April 30, 1999, the Fund offered the
following fifteen portfolios: the International Small Cap Fund ("International
Small Cap"), the International Equity Fund, (formerly the International Growth
and Income Fund) ("International Equity"), the Global Equity Fund ("Global
Equity"), the Emerging Growth Fund ("Emerging Growth"), the Small/Mid Cap Fund
("Small/Mid Cap"), the Growth Equity Fund ("Growth Equity"), the Tax-Sensitive
Equity Fund ("Tax-Sensitive Equity"), the Growth and Income Fund ("Growth and
Income"), the Equity-Income Fund ("Equity-Income"), the Balanced Fund
("Balanced"), the Strategic Income Fund ("Strategic Income"), the Investment
Quality Bond Fund ("Investment Quality Bond"), the National Municipal Bond Fund
("National Municipal Bond"), the U.S. Government Securities Fund ("U.S.
Government Securities") and the Money Market Fund ("Money Market").
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
with a front-end sales charge of up to 5.75%. Class B and Class C shares are
sold without an initial sales charge. Class B shares are sold with a contingent
deferred sales charge which declines from 5% to zero depending on the period of
time shares are held. Class C shares are sold with a contingent deferred sales
charge of 1% in the first year after purchase. Class B shares will automatically
convert to Class A shares of the same portfolio eight years after purchase.
Class C shares will automatically convert to Class A shares of the same
portfolio ten years after purchase. All three classes of shares have identical
voting, dividend, liquidation and other rights, except that each class has
exclusive voting rights with respect to its distribution plan (See Note 5).
Investment income, realized and unrealized capital gains and losses and common
expenses of each portfolio are allocated on a pro-rata basis to each class based
on their relative net assets.
CypressTree Asset Management Corporation, Inc. ("CAM"), a wholly-owned
subsidiary of CypressTree Investments, Inc. ("CypressTree"), serves as
investment adviser and principal underwriter for the Fund. CypressTree Funds
Distributors, Inc. ("CFD"), also a wholly-owned subsidiary of CypressTree,
serves as distributor for the Fund.
CypressTree, located in Boston, Massachusetts, was formed in 1996 to acquire,
advise and distribute mutual funds through broker-dealers, banks and other
intermediaries.
2. SIGNIFICANT ACCOUNTING POLICIES. The policies described below are followed
when preparing the Funds' financial statements. These policies are in accordance
with generally accepted accounting principles ("GAAP").
Security Valuation. Securities held by Money Market and money market instruments
with remaining maturities of 60 days or less held by the other portfolios are
valued at either the amortized cost basis or original cost plus accrued
interest, both of which approximate current market value. All other securities
held by the Fund are valued at the last sale price as of the close of business
on a principal securities exchange (domestic or foreign) or, lacking any sales,
at the closing bid price. Securities traded only in the over-the-counter market
are valued at the last bid price quoted by brokers making markets in the
securities at the close of trading on the Exchange. Other assets and securities
for which no such quotation or valuations are readily available are valued at
their fair value as determined in good faith under consistently applied
procedures established by and under the general supervision of the Trustees.
Foreign Currency Translations. The accounting records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(i) market value of securities, other assets and other liabilities at the
current rate of exchange of such currencies against U.S. dollars; and
(ii) purchases and sales of securities, income and expenses at the rate of
exchange quoted on the respective dates of such transactions.
Gains and losses that arise from changes in foreign exchange rates have been
segregated from gains and losses that arise from changes in the market prices of
investments. These gains and losses are included with gains and losses on
foreign currency and forward foreign currency contracts in the Statements of
Operations.
Forward Foreign Currency Contracts. All portfolios with the exception of U.S.
Government Securities, National Municipal Bond and Money Market may purchase and
sell forward foreign currency contracts in order to hedge a specific transaction
or portfolio position.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held at the end of the period and the resulting net unrealized
appreciation (depreciation) and related net receivable or payable amount are
determined daily using forward currency exchange
59
<PAGE>
NORTH AMERICAN FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 2 - continued
rates supplied by a quotation service. The Fund could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts
or if the value of the foreign currency changes unfavorably.
Net realized gains (losses) on forward foreign currency contracts, shown in the
Statements of Operations, includes net gains or losses realized by a portfolio
on contracts which have matured.
Forward Commitments. The Fund may make forward commitments to purchase and sell
securities. Delivery and payment for securities which have been purchased or
sold on a forward commitment basis can take place a month or more (not to exceed
120 days) after the date of the transaction. The price of the underlying
securities and the date when the securities will be delivered and paid for are
fixed at the time the transaction is negotiated. The value of the securities
underlying a forward commitment to purchase securities, and any subsequent
fluctuations in their value, is taken into account when determining the
portfolio's net asset value starting on the day the portfolio agrees to purchase
the securities. At April 30, 1999, the forward commitments were $700,491 in
Strategic Income and $15,264,827 in U. S. Government Securities.
Mortgage Dollar Rolls. Strategic Income and U. S. Government Securities may
enter into mortgage dollar rolls in which they sell mortgage-backed securities
for normal delivery in the current month and simultaneously contract to
repurchase similar, but not identical, securities at the same price on an agreed
upon date. The portfolio receives compensation as consideration for entering
into the commitment to repurchase. The compensation is recorded as deferred
income and amortized to income over the roll period. As the holder, the
counterparty receives all principal and interest payments, including
prepayments, made with respect to the similar security. Mortgage dollar rolls
may be renewed with a new sale and repurchase price with a cash settlement made
at renewal without physical delivery of the securities subject to the contract.
Securities Lending. The Fund may lend its portfolio securities in amounts up to
33% of its total non-cash assets to brokers, dealers and other financial
institutions, provided such loans are callable at any time and are at all times
fully collateralized by cash, cash equivalents, short term investments or
securities issued or guaranteed by the U.S. government or its agencies or
instrumentalities, and marked to market to the value of the loaned securities on
a daily basis. The portfolio may bear the risk of delay in recovery of, or even
loss of rights in, the securities loaned should the borrower of the securities
fail financially. Consequently, loans of portfolio securities will only be made
to firms deemed by the Subadvisers to be creditworthy.
The portfolio receives compensation for lending its securities either in the
form of fees or by retaining a portion of interest on the investment of any cash
received as collateral. Income generated from the investment of cash collateral
is included as interest income in the Statements of Operations. All collateral
received will be in an amount equal to at least 100% of the market value of the
loaned securities and should be maintained at that level during the period of
the loan. During the loan period, the portfolio continues to retain rights of
ownership, including dividends and interest of the loaned securities. At April
30, 1999, the value of the securities loaned amounted to $2,708,802, $62,318,
$12,016,379, $7,985,067, $2,419,915, $5,052,259, $3,286,961, $4,091,457 and
$2,743,665 in International Small Cap, International Equity, Global Equity,
Small/Mid Cap, Growth Equity, Growth and Income, Balanced, Strategic Income and
Investment Quality Bond, respectively. At April 30, 1999, the value of
collateral amounted to $2,854,376, $65,020, $12,498,705, $8,163,172, $2,501,536,
$6,184,920, $3,437,871, $4,299,280 and $2,821,919 in International Small Cap,
International Equity, Global Equity, Small/Mid Cap, Growth Equity, Growth and
Income, Balanced, Strategic Income and Investment Quality Bond, respectively.
Organization Costs. Costs incurred by each portfolio in connection with its
organization are being amortized on a straight line basis over a five year
period.
Federal Income Taxes. The Fund's policy is for each portfolio to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code, as
amended, and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required. Each portfolio is
treated as a separate taxpayer for federal income tax purposes.
Distributions of Income and Gains. Distributions of net investment income are
declared as a dividend to shareholders of record as of the close of business
each day and are paid monthly for Strategic Income, Investment Quality Bond,
National Municipal Bond, U.S. Government Securities and Money Market,
semi-annually to shareholders of International Equity and Growth and Income, and
annually to shareholders of International Small Cap, Global Equity, Emerging
Growth, Small/Mid Cap, Growth Equity, Tax-Sensitive Equity, Equity-Income and
Balanced. During any particular year, net realized gains from investment,
futures and foreign currency transactions for each portfolio, in excess of
available capital loss carryforwards of each portfolio, would be taxable to the
portfolio if not
60
<PAGE>
NORTH AMERICAN FUNDS
Notes to Financial Statements
- -------------------------------------------------------------------------------
Note 2 - continued
distributed and, therefore, will be distributed to shareholders. An additional
distribution may be made to the extent necessary to avoid the payment of a
federal excise tax.
Capital Loss Carryforwards. At April 30, 1999, capital loss carryforwards
available to offset future recognized gains were approximately:
<TABLE>
<CAPTION>
Capital Loss Carryforwards
Expiration Year
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Portfolio 2002 2003 2004 2005 2006
- ----------------------------- --------------- -------------- ------------- ------------- -------------
Emerging Growth ........... -- -- -- -- $ 39,153
International Small Cap ... -- -- $ 54,060 $ 517,432 85,758
Investment Quality Bond ... $ 329,026 -- -- -- --
National Municipal Bond ... -- $ 24,157 -- -- --
Tax-Sensitive Equity ...... -- -- -- -- 754,731
U. S. Government Securities -- 1,062,756 -- -- --
Money Market .............. -- -- -- 1,702 1,156
</TABLE>
Repurchase and Reverse Repurchase Agreements. Each portfolio may enter into
repurchase agreements and, additionally, U.S. Government Securities may enter
into reverse repurchase agreements. When a portfolio enters into a repurchase
agreement through its custodian, it receives delivery of securities, the amount
of which at the time of purchase and each subsequent business day is required to
be maintained at such a level that the market value is equal to 102% of the
repurchase price, and such portfolio will take constructive receipt of all
securities underlying the repurchase agreements until such agreements expire. If
the seller defaults, a portfolio would suffer a loss to the extent that proceeds
from the sale of underlying securities were less than the repurchase price.
Under a reverse repurchase agreement, U.S. Government Securities may sell a debt
security and agree to repurchase it at an agreed upon time and at an agreed upon
price.
Other. Investment security transactions are accounted for on the trade date.
Interest income is accrued as earned. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. All original issue discounts
are accreted for financial and federal income tax reporting purposes. The Fund
uses the First In, First Out method for determining realized gain or loss on
investments, futures and foreign currency for both financial and federal income
tax reporting purposes. The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the
reported amount of assets, liabilities, income and expenses. Actual results may
differ from these estimates.
Capital Accounts. The Fund reports the accumulated undistributed net investment
income (loss) and accumulated undistributed net realized gain (loss) accounts on
a basis approximating amounts available for future tax distributions (or to
offset future taxable realized gains when a capital loss carryforward is
available). Accordingly, each portfolio of the Fund may periodically make
reclassifications among certain capital accounts without impacting the net asset
value.
3. CAPITAL SHARES. Share activity for the period ended April 30, 1999, is as
follows:
<TABLE>
<CAPTION>
Class A Class B Class C
--------------------------- --------------------------- -----------------------------
Shares Capital Shares Capital Shares Capital
------------- ------------- ------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
International Small Cap
- -----------------------
Sold ............................ 14,337 $ 217,760 39,393 $ 599,088 28,923 $ 425,517
Redeemed ........................ (32,921) (498,476) (112,880) (1,678,786) (113,485) (1,682,597)
----------- ------------- ----------- ------------- ------------ -------------
Net increase/(decrease) .... (18,584) ($ 280,716) (73,487) ($ 1,079,698) (84,562) ($ 1,257,080)
=========== ============= =========== ============= ============ =============
International Equity
- --------------------
Sold ............................ 44,568 $ 470,473 124,961 $ 1,343,439 47,999 $ 516,392
Reinvestment of distributions ... 1,100 11,388 3,861 39,697 2,310 23,747
Redeemed ........................ (78,998) (839,393) (210,903) (2,228,672) (232,924) (2,501,947)
----------- ------------- ------------ ------------ ------------ -------------
Net increase/(decrease) .... (33,330) ($ 357,532) (82,081) ($ 845,536) (182,615) ($ 1,961,808)
=========== ============= ============ ============ ============ =============
Global Equity
- -------------
Sold ............................ 736,692 $ 11,522,849 86,493 $ 1,370,894 1,004,336 $ 16,065,892
Reinvestment of distributions ... 142,681 2,268,622 131,730 2,068,161 255,619 4,026,003
Redeemed ........................ (1,386,005) (21,676,363) (293,210) (4,634,129) (1,545,793) (24,640,152)
----------- ------------- ------------ ------------- ------------ -------------
Net increase/(decrease) .... (506,632) ($ 7,884,892) (74,987) ($ 1,195,074) (285,838) ($ 4,548,257)
=========== ============= ============ ============= ============ =============
</TABLE>
<PAGE>
NORTH AMERICAN FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 3 - continued
<TABLE>
<CAPTION>
Class A Class B Class C
---------------------------- ---------------------------- -----------------------------
Shares Capital Shares Capital Shares Capital
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Emerging Growth
- ---------------
Sold ............................... 10,230 $ 98,482 41,868 $ 405,631 12,174 $ 118,083
Redeemed ........................... (8,545) (85,642) (19,133) (187,511) (8,679) (83,840)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 1,685 $ 12,840 22,735 $ 218,120 3,495 $ 34,243
============ ============ ============ ============ ============ ============
Small/Mid Cap
- -------------
Sold ............................... 68,303 $ 1,182,713 187,319 $ 3,203,614 290,082 $ 4,951,464
Reinvestment of distributions ...... 25,158 411,088 78,912 1,259,456 86,436 1,382,112
Redeemed ........................... (86,688) (1,555,526) (145,799) (2,467,810) (284,924) (4,842,825)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 6,773 $ 38,275 120,432 $ 1,995,260 91,594 $ 1,490,751
============ ============ ============ ============ ============ ============
Growth Equity
- -------------
Sold ............................... 73,206 $ 1,439,476 167,282 $ 3,273,956 266,161 $ 5,165,431
Reinvestment of distributions ...... 14,236 259,959 39,479 708,254 45,769 820,177
Redeemed ........................... (59,451) (1,158,167) (87,015) (1,701,369) (96,658) (1,852,848)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 27,991 $ 541,268 119,746 $ 2,280,841 215,272 $ 4,132,760
============ ============ ============ ============ ============ ============
Tax-Sensitive Equity
- --------------------
Sold ............................... 38,290 $ 365,774 149,158 $ 1,418,610 112,652 $ 1,076,588
Redeemed ........................... (278,734) (2,635,282) (60,653) (591,678) (105,115) (1,049,293)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (240,444) ($ 2,269,508) 88,505 $ 826,932 7,537 $ 27,295
============ ============ ============ ============ ============ ============
Growth and Income
- -----------------
Sold ............................... 343,593 $ 9,099,146 594,552 $ 15,490,924 819,587 $ 21,578,467
Reinvestment of distributions ...... 64,033 1,620,044 114,011 2,851,439 176,942 4,443,012
Redeemed ........................... (308,817) (8,135,157) (282,439) (7,345,340) (561,168) (14,721,810)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 98,809 $ 2,584,033 426,124 $ 10,997,023 435,361 $ 11,299,669
============ ============ ============ ============ ============ ============
Equity-Income
- -------------
Sold ............................... 152,605 $ 2,661,039 105,729 $ 1,812,358 223,840 $ 3,881,085
Reinvestment of distributions ...... 171,602 2,870,904 159,351 2,648,405 397,370 6,644,038
Redeemed ........................... (769,040) (13,112,260) (375,207) (6,342,543) (1,172,042) (19,991,852)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (444,833) ($ 7,580,317) (110,127) ($ 1,881,780) (550,832) ($ 9,466,729)
============ ============ ============ ============ ============ ============
Balanced
- --------
Sold ............................... 126,769 $ 1,361,173 74,458 $ 806,777 248,041 $ 2,709,845
Reinvestment of distributions ...... 124,734 1,332,156 143,215 1,528,102 483,803 5,230,024
Redeemed ........................... (127,102) (1,366,678) (246,745) (2,657,075) (567,104) (6,195,990)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 124,401 $ 1,326,651 (29,072) ($ 322,196) 164,740 $ 1,743,879
============ ============ ============ ============ ============ ============
Strategic Income
- ----------------
Sold ............................... 302,244 $ 2,706,851 418,673 $ 3,813,599 132,881 $ 1,202,158
Reinvestment of distributions ...... 40,975 369,639 72,475 653,417 95,893 864,720
Redeemed ........................... (779,605) (7,001,802) (721,380) (6,500,903) (731,362) (6,581,523)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (436,386) ($ 3,925,312) (230,232) ($ 2,033,887) (502,588) ($ 4,514,645)
============ ============ ============ ============ ============ ============
Investment Quality Bond
- -----------------------
Sold ............................... 50,541 $ 532,195 127,326 $ 1,354,701 90,918 $ 958,814
Reinvestment of distributions ...... 14,016 148,058 9,643 101,835 11,433 120,721
Redeemed ........................... (69,837) (734,037) (144,964) (1,526,554) (77,813) (817,244)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (5,280) ($ 53,784) (7,995) ($ 70,018) 24,538 $ 262,291
============ ============ ============ ============ ============ ============
National Municipal Bond
- -----------------------
Sold ............................... 1,985 $ 19,366 31,289 $ 317,752 52,868 $ 537,917
Reinvestment of distributions ...... 5,850 59,421 4,824 48,994 6,060 61,536
Redeemed ........................... (25,685) (260,914) (36,044) (366,231) (80,258) (814,883)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (17,850) ($ 182,127) 69 $ 515 (21,330) ($ 215,430)
============ ============ ============ ============ ============ ============
</TABLE>
62
<PAGE>
NORTH AMERICAN FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 3 - continued
<TABLE>
<CAPTION>
Class A Class B Class C
----------------------------- ----------------------------- -----------------------------
Shares Capital Shares Capital Shares Capital
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
U.S. Government Securities
- --------------------------
Sold ............................... 348,846 $ 3,443,801 204,183 $ 2,023,108 1,469,492 $ 14,620,547
Reinvestment of distributions ...... 79,419 792,530 20,056 199,983 22,564 224,961
Redeemed ........................... (883,475) (8,768,253) (641,984) (6,409,541) (1,497,923) (14,906,807)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (455,210) ($ 4,531,922) (417,745) ($ 4,186,450) (5,867) ($ 61,299)
============ ============ ============ ============ ============ ============
Money Market
- ------------
Sold ............................... 19,379,544 $ 19,380,971 7,066,942 $ 7,067,400 13,880,271 $ 13,881,326
Reinvestment of distributions ...... 157,442 157,441 78,226 78,226 133,681 133,681
Redeemed ........................... (19,551,941) (19,551,941) (8,091,196) (8,091,196) (14,476,218) (14,476,218)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (14,955) ($ 13,529) (946,028) ($ 945,570) (462,266) ($ 461,211)
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
Share activity for the year ended October 31, 1998, was as follows:
<TABLE>
<CAPTION>
Class A Class B Class C
----------------------------- ----------------------------- -----------------------------
Shares Capital Shares Capital Shares Capital
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
International Small Cap
- -----------------------
Sold ............................... 38,317 $ 585,923 158,290 $ 2,313,605 99,606 $ 1,479,559
Redeemed ........................... (114,707) (1,649,155) (177,019) (2,565,436) (158,567) (2,352,841)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (76,390) ($ 1,063,232) (18,729) ($ 251,831) (58,961) ($ 873,282)
============ ============ ============ ============ ============ ============
International Equity
- --------------------
Sold ............................... 199,128 $ 2,104,258 276,576 $ 2,901,231 218,156 $ 2,308,683
Reinvestment of distributions ...... 44,088 424,134 131,412 1,264,722 73,392 706,029
Redeemed ........................... (272,419) (2,839,795) (490,983) (5,115,710) (263,329) (2,792,273)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (29,203) ($ 311,403) (82,995) ($ 949,757) 28,219 $ 222,439
============ ============ ============ ============ ============ ============
Global Equity
- -------------
Sold ............................... 446,573 $ 7,442,815 280,820 $ 4,734,000 526,057 $ 8,521,394
Reinvestment of distributions ...... 152,180 2,323,793 136,778 2,076,461 262,341 3,998,091
Redeemed ........................... (605,332) (10,137,623) (525,613) (8,376,635) (1,026,358) (16,728,703)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (6,579) ($ 371,015) (108,015) ($ 1,566,174) (237,960) ($ 4,209,218)
============ ============ ============ ============ ============ ============
Emerging Growth
- ---------------
Sold ............................... 22,245 $ 229,241 30,970 $ 308,715 27,355 $ 289,054
Redeemed ........................... (5,767) (60,513) (1,200) (10,251) (438) (3,923)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 16,478 $ 168,728 29,770 $ 298,464 26,917 $ 285,131
============ ============ ============ ============ ============ ============
Small/Mid Cap
- -------------
Sold ............................... 183,881 $ 2,977,455 366,794 $ 5,878,496 478,367 $ 7,674,000
Reinvestment of distributions ...... 4,511 64,099 13,425 188,347 13,917 195,545
Redeemed ........................... (158,019) (2,553,137) (263,887) (4,140,429) (342,381) (5,487,633)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 30,373 $ 488,417 116,332 $ 1,926,414 149,903 $ 2,381,912
============ ============ ============ ============ ============ ============
Growth Equity
- -------------
Sold ............................... 139,044 $ 2,458,526 264,945 $ 4,640,723 222,095 $ 3,924,774
Reinvestment of distributions ...... 16,479 255,776 47,951 737,982 69,363 1,066,801
Redeemed ........................... (113,974) (2,026,744) (180,039) (3,088,010) (304,031) (5,337,043)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 41,549 $ 687,558 132,857 $ 2,290,695 (12,573) ($ 345,468)
============ ============ ============ ============ ============ ============
Tax-Sensitive Equity
- --------------------
Sold ............................... 505,569 $ 5,423,710 327,006 $ 3,440,453 373,346 $ 3,674,143
Redeemed ........................... (47,892) (502,935) (6,225) (55,022) (9,883) (84,557)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 457,677 $ 4,920,775 320,781 $ 3,385,431 363,463 $ 3,589,586
============ ============ ============ ============ ============ ============
</TABLE>
63
<PAGE>
NORTH AMERICAN FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 3 - continued
<TABLE>
<CAPTION>
Class A Class B Class C
------------------------- ---------------------------- ----------------------------
Shares Capital Shares Capital Shares Capital
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Growth and Income
- -----------------
Sold ............................... 875,486 $ 20,239,609 951,247 $ 22,019,893 1,138,031 $ 26,430,588
Reinvestment of distributions ...... 127,179 2,612,268 202,572 4,138,748 348,181 7,145,010
Redeemed ........................... (804,113) (18,494,847) (538,445) (12,243,375) (925,887) (21,379,820)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 198,552 $ 4,357,030 615,374 $ 13,915,266 560,325 $ 12,195,778
============ ============ ============ ============ ============ ============
Equity-Income
- -------------
Sold ............................... 479,470 $ 8,464,050 386,814 $ 6,812,335 766,845 $ 13,528,867
Reinvestment of distributions ...... 194,948 3,251,762 170,544 2,827,635 446,831 7,448,669
Redeemed ........................... (678,934) (11,894,736) (421,373) (7,372,953) (1,197,874) (21,063,343)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (4,516) ($ 178,924) 135,985 $ 2,267,017 15,802 ($ 85,807)
============ ============ ============ ============ ============ ============
Balanced
- --------
Sold ............................... 233,949 $ 2,624,837 349,775 $ 3,884,232 310,079 $ 3,514,608
Reinvestment of distributions ...... 222,869 2,300,076 274,666 2,832,512 1,113,960 11,629,960
Redeemed ........................... (177,968) (1,997,969) (335,330) (3,806,142) (1,193,333) (13,589,791)
------------- ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 278,850 $ 2,926,944 289,111 $ 2,910,602 230,706 $ 1,554,777
============ ============ ============ ============ ============ ============
Strategic Income
- ----------------
Sold ............................... 370,479 $ 3,594,336 691,131 $ 6,593,782 1,046,821 $ 10,134,342
Reinvestment of distributions ...... 95,493 912,850 149,034 1,426,572 220,511 2,109,372
Redeemed ........................... (396,621) (3,797,754) (1,136,578) (10,809,182) (887,028) (8,446,963)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... 69,351 $ 709,432 (296,413) ($ 2,788,828) 380,304 $ 3,796,751
============================================================================================
Investment Quality Bond
- -----------------------
Sold ............................... 170,210 $ 1,802,178 117,621 $ 1,245,709 198,006 $ 2,105,448
Reinvestment of distributions ...... 33,910 360,020 22,312 236,748 25,597 271,574
Redeemed ........................... (246,964) (2,627,068) (122,141) (1,294,362) (283,354) (3,004,137)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (42,844) ($ 464,870) 17,792 $ 188,095 (59,751) ($ 627,115)
============ ============ ============ ============ ============ ============
National Municipal Bond
- -----------------------
Sold ............................... 65,843 $ 675,842 34,659 $ 354,757 85,884 $ 879,629
Reinvestment of distributions ...... 13,963 142,649 13,125 134,060 15,971 163,141
Redeemed ........................... (139,834) (1,426,114) (179,502) (1,839,689) (124,211) (1,268,991)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (60,028) ($ 607,623) (131,718) ($ 1,350,872) (22,356) ($ 226,221)
============ ============ ============ ============ ============ ============
U.S. Government Securities
- --------------------------
Sold ............................... 504,070 $ 5,044,310 940,887 $ 9,443,101 813,806 $ 8,150,377
Reinvestment of distributions ...... 197,452 1,973,152 52,081 520,627 59,278 592,076
Redeemed ........................... (1,134,417) (11,333,731) (896,940) (8,975,680) (1,092,107) (10,920,493)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (432,895) ($ 4,316,269) 96,028 $ 988,048 (219,023) ($ 2,178,040)
============ ============ ============ ============ ============ ============
Money Market
- ------------
Sold ............................... 19,804,375 $ 19,803,662 12,413,813 $ 12,413,585 17,413,158 $ 17,412,707
Reinvestment of distributions ...... 411,135 411,135 142,434 142,434 341,140 341,141
Redeemed ........................... (20,976,437) (20,976,438) (9,968,556) (9,968,557) (17,056,318) (17,056,319)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) ....... (760,927) ($ 761,641) 2,587,691 $ 2,587,462 697,980 $ 697,529
============ ============ ============ ============ ============ ============
</TABLE>
4. PURCHASES AND SALES OF SECURITIES. The following table summarizes the
securities transactions (excluding short-term investments) for all portfolios,
excluding Money Market, for the period ended April 30, 1999:
<TABLE>
Purchases Sales
---------------------------------------- ---------------------------------------
Portfolio U.S. Government Other Issues U.S. Government Other Issues
------------------- ------------------ ---------------- ----------------- ---------------------
<S> <C> <C> <C> <C>
International Small Cap................... ------ $3,234,208 ------ $3,255,670
International Equity...................... ------ 26,606,287 ------ 29,962,576
Global Equity............................. ------ 19,612,743 ------ 37,512,864
Emerging Growth .......................... ------ 751,812 ------ 571,444
Small/Mid Cap............................. ------ 41,086,396 ------ 41,720,963
Growth Equity............................. ------ 30,754,064 ------ 25,641,816
Tax-Sensitive Equity ..................... ------ 4,200,754 ------ 5,629,710
Growth and Income......................... ------ 38,247,989 ------ 26,332,356
</TABLE>
64
<PAGE>
NORTH AMERICAN FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 4 - continued
<TABLE>
<CAPTION>
Purchases Sales
-------------------------------------- -------------------------------------
Portfolio U.S. Government Other Issues U.S. Government Other Issues
- ------------------------------------------ ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Equity-Income............................. ------ $87,362,789 ------ $111,028,899
Balanced.................................. $57,779,319 39,250,147 $31,388,958 72,576,881
Strategic Income.......................... 4,860,734 88,323,356 4,023,910 102,364,100
Investment Quality Bond................... 1,243,224 3,029,847 2,351,123 1,570,207
National Municipal Bond................... ------ 3,644,722 ------ 3,845,210
U.S. Government Securities................ 134,992,859 ------ 143,674,981 ------
</TABLE>
At April 30, 1999, tax basis net unrealized appreciation was equal to the
aggregate gross unrealized appreciation for all securities in which there was an
excess of market value over tax cost and aggregate gross unrealized depreciation
for all securities in which there was an excess of tax cost over market value as
follows:
<TABLE>
<CAPTION>
Tax Basis Net
Unrealized Tax Basis Tax Basis
Tax Basis Appreciation Unrealized Unrealized
Portfolio Cost (Depreciation) Appreciation Depreciation
- --------------------------------------- ------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
International Small Cap ............... $ 11,312,464 $ 3,811,228 $ 4,345,243 ($534,015)
International Equity .................. 24,984,277 1,274,320 1,862,915 (588,595)
Global Equity ......................... 86,631,835 20,464,469 25,438,955 4,974,486)
Emerging Growth ....................... 839,919 101,527 164,636 (63,109)
Small/Mid Cap ......................... 41,057,593 3,411,915 5,305,419 (1,893,504)
Growth Equity ......................... 33,785,948 6,218,917 6,619,897 (400,980)
Tax-Sensitive Equity .................. 8,907,814 757,921 1,293,526 (535,605)
Growth and Income ..................... 184,923,005 122,688,511 126,071,290 (3,382,779)
Equity-Income ......................... 122,873,961 30,601,415 31,019,269 (417,854)
Balanced .............................. 93,906,790 2,338,774 4,444,710 (2,105,936)
Strategic Income ...................... 70,228,755 (2,312,395) 1,681,710 (3,994,105)
Investment Quality Bond ............... 16,903,536 (143,164) 255,088 (398,252)
National Municipal Bond ............... 14,567,274 805,947 807,739 (1,792)
U. S. Government Securities ........... 87,390,737 (275,701) 365,531 (641,232)
</TABLE>
5. INVESTMENT ADVISORY AGREEMENTS. The Fund maintains an Investment Advisory
Agreement with CAM ("the Adviser"), pursuant to approval by the Fund's Board of
Trustees and Fund shareholders. The Adviser is responsible for managing the
corporate and business affairs of the Fund and for selecting and compensating
subadvisers to handle the investment and reinvestment of the assets of each
portfolio, subject to the supervision of the Trustees of the Fund. As
compensation for its services, the Adviser receives a fee from the Fund computed
separately for each portfolio at an annual percentage of average net assets as
follows:
<TABLE>
<CAPTION>
Between
$50,000,000 Between
First and $200,000,000 Excess over
Portfolio $50,000,000 $200,000,000 and $500,000,000 $500,000,000
- -------------------- ---------------- ----------------- ------------------ ---------------
<S> <C> <C> <C> <C>
International Small Cap............................... 1.050% 1.000% .900% .800%
International Equity ................................. .900% .850% .800% .750%
Global Equity......................................... .900% .900% .700% .700%
Emerging Growth....................................... .950% .950% .950% .950%
Small/Mid Cap......................................... .925% .900% .875% .850%
Growth Equity......................................... .900% .850% .825% .800%
Tax-Sensitive Equity.................................. .850% .800% .775% .700%
Growth and Income..................................... .725% .675% .625% .550%
Equity-Income......................................... .750% .650% .550% .550%
Balanced.............................................. .775% .725% .675% .625%
Strategic Income...................................... .750% .700% .650% .600%
</TABLE>
65
<PAGE>
NORTH AMERICAN FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 5 - continued
<TABLE>
<CAPTION>
Between Between
$50,000,000 $200,000,000
First and and $500,000,000 Excess over
Portfolio $50,000,000 $200,000,000 $500,000,000
- -------------------- -------------- ------------------ ----------------- ------------
<S> <C> <C> <C> <C>
Investment Quality Bond............................... .600% .600% .525% .475%
National Municipal Bond............................... .600% .600% .600% .600%
U.S. Government Securities............................ .600% .600% .525% .475%
Money Market.......................................... .200% .200% .200% .145%
</TABLE>
For the period ended April 30, 1999, CAM paid aggregate subadvisory fees of
$1,724,886. In addition, CAM retained net investment advisory fees of $1,879,478
after payment of subadvisory fees, which were allocated among the portfolios as
follows:
<TABLE>
<CAPTION>
Fee % of Net Assets Fee % of Net Assets
Paid to Paid to Retained Retained
Portfolio Subadviser Subadviser by CAM by Adviser
--------------- -------------------- --------------- -----------------
<S> <C> <C> <C> <C>
International Small Cap ................ $ 50,019 .65% $ 30,780 .40%
International Equity ................... 64,909 .50% 51,929 .40%
Global Equity .......................... 273,472 .47% 248,677 .43%
Emerging Growth ........................ 2,877 .64% 1,396 .31%
Small/Mid Cap .......................... 105,493 .52% 80,376 .40%
Growth Equity .......................... 85,637 .50% 68,509 .40%
Tax-Sensitive Equity ................... 24,657 .45% 21,917 .40%
Growth and Income ...................... 368,642 .27% 545,163 .40%
Equity-Income .......................... 323,349 .39% 273,920 .33%
Balanced ............................... 170,431 .35% 194,503 .40%
Strategic Income ....................... 124,702 .33% 149,739 .37%
Investment Quality Bond ................ 19,328 .23% 32,214 .37%
National Municipal Bond ................ 19,742 .25% 27,638 .35%
U.S. Government Securities ............. 83,211 .22% 138,684 .38%
Money Market ........................... 8,417 .08% 14,033 .12%
</TABLE>
Expense Reimbursement and Distribution Plan. Pursuant to the Investment Advisory
Agreement, the Adviser will reduce the advisory fee, or, if necessary, reimburse
each portfolio of the Fund for expenses (excluding taxes, portfolio brokerage
commissions, interest, certain litigation and indemnification expenses,
extraordinary expenses and all of the portfolio's distribution fees) incurred in
excess (Expense limitation) of the following annual percentages of average net
assets as highlighted in the table below.
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940 to use its assets to finance certain
activities relating to the distribution of its shares to investors. The Plan is
a "compensation" plan providing for the payment by each portfolio, other than
Money Market, of a monthly distribution fee to the Adviser as principal
underwriter for the Fund as highlighted in the table below:
<TABLE>
<CAPTION>
Portfolio Class A Class B Class C
-------------------- -------------------- -------------------- -----------------
<S> <C> <C> <C>
International Small Cap
- -----------------------
Management fees ......................................... 1.050% 1.050% 1.050%
Other expenses .......................................... 0.500% 0.500% 0.500%
------ ------ ------
Expense limitation ...................................... 1.550% 1.550% 1.550%
====== ====== ======
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
International Equity
- --------------------
Management fees ......................................... 0.900% 0.900% 0.900%
Other expenses .......................................... 0.500% 0.500% 0.500%
------ ------ ------
Expense limitation ...................................... 1.400% 1.400% 1.400%
====== ====== ======
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
</TABLE>
66
<PAGE>
NORTH AMERICAN FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 5 - continued
<TABLE>
<CAPTION>
Portfolio Class A Class B Class C
-------------------- -------------------- -------------------- --------------------
<S> <C> <C> <C>
Global Equity
- -------------
Management fees ......................................... 0.900% 0.900% 0.900%
Other expenses .......................................... 0.500% 0.500% 0.500%
----- ----- -----
Expense limitation ...................................... 1.400% 1.400% 1.400%
===== ===== =====
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
Emerging Growth
- ---------------
Management fees ......................................... 0.950% 0.950% 0.950%
Other expenses .......................................... 0.400% 0.400% 0.400%
----- ----- -----
Expense limitation ...................................... 1.350% 1.350% 1.350%
===== ===== =====
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
Small/Mid Cap
- -------------
Management fees ......................................... 0.925% 0.925% 0.925%
Other expenses .......................................... 0.400% 0.400% 0.400%
----- ----- -----
Expense limitation ...................................... 1.325% 1.325% 1.325%
===== ===== =====
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
Growth Equity
- -------------
Management fees ......................................... 0.900% 0.900% 0.900%
Other expenses .......................................... 0.400% 0.400% 0.400%
----- ----- -----
Expense limitation ...................................... 1.300% 1.300% 1.300%
===== ===== =====
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
Tax-Sensitive Equity
- --------------------
Management fees ......................................... 0.850% 0. 850% 0. 850%
Other expenses .......................................... 0.400% 0.400% 0.400%
----- ----- -----
Expense limitation ...................................... 1.250% 1.250% 1.250%
===== ===== =====
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
Growth and Income
- -----------------
Management fees ......................................... 0.725% 0.725% 0.725%
Other expenses .......................................... 0.265% 0.265% 0.265%
----- ----- -----
Expense limitation ...................................... 0.990% 0.990% 0.990%
===== ===== =====
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
Equity-Income
- -------------
Management fees ......................................... 0.750% 0.750% 0.750%
Other expenses .......................................... 0.270% 0.270% 0.270%
----- ----- -----
Expense limitation ...................................... 1.020% 1.020% 1.020%
===== ===== =====
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
Balanced
- --------
Management fees ......................................... 0.775% 0.775% 0.775%
Other expenses .......................................... 0.265% 0.265% 0.265%
----- ----- -----
Expense limitation ...................................... 1.040% 1.040% 1.040%
===== ===== =====
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
Strategic Income
- ----------------
Management fees ......................................... 0.750% 0.750% 0.750%
Other expenses .......................................... 0.400% 0.400% 0.400%
----- ----- -----
Expense limitation ...................................... 1.150% 1.150% 1.150%
===== ===== =====
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
Investment Quality Bond
- -----------------------
Management fees ......................................... 0.600% 0.600% 0.600%
Other expenses .......................................... 0.300% 0.300% 0.300%
----- ----- -----
Expense limitation ...................................... 0.900% 0.900% 0.900%
===== ===== =====
Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000%
National Municipal Bond
- -----------------------
Management fees ......................................... 0.600% 0.600% 0.600%
Other expenses .......................................... 0.250% 0.250% 0.250%
----- ----- -----
Expense limitation ...................................... 0.850% 0.850% 0.850%
===== ===== =====
Rule 12b-1 fees ......................................... 0.150% 1.000% 1.000%
</TABLE>
67
<PAGE>
NORTH AMERICAN FUNDS
Notes to financial Statements
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Note 5, continued
Portfolio Class A Class B Class C
-------------------- ---------------- -------------------- --------------------
<S> <C> <C> <C>
U.S. Government Securities
- --------------------------
Management fees................................. 0.600% 0.600% 0.600%
Other expenses.................................. 0.300% 0.300% 0.300%
------ ------ ------
Expense limitation.............................. 0.900% 0.900% 0.900%
====== ====== ======
Rule 12b-1 fees................................. 0.350% 1.000% 1.000%
Money Market
- ------------
Management fees................................. 0.200% 0.200% 0.200%
Other expenses.................................. 0.300% 0.300% 0.300%
------ ------ ------
Expense limitation.............................. 0.500% 0.500% 0.500%
====== ====== ======
</TABLE>
In accordance with the Investment Advisory agreement, the Adviser, in addition
to providing advisory services, provides accounting and administrative services
for which CAM charged $721,184 to the Fund, before reimbursement based on
expense limitations, for the period ended April 30, 1999.
6. TRUSTEE'S FEES. The Fund pays each Trustee who is not an employee or a
director of the Adviser or its affiliates a fee of $750 plus travel expenses for
each Board of Trustees meeting attended and an annual retainer of $3,000.
7. LINE OF CREDIT. On September 15, 1998, the Fund entered into an agreement
with Fleet National Bank that provides a $20,000,000 Line of Credit to the Fund
which may be used for cash overdraft protection. The Fund pays a commitment fee
of $20,000 annually, and interest is charged on any borrowed amounts at the
currently effective Federal Funds Rate plus .55%. This Line of Credit was not
used during the period ended April 30, 1999.
8. COMMITMENTS. At April 30, 1999, International Small Cap, International
Equity, Global Equity, and Strategic Income had entered into forward foreign
currency contracts which contractually obligate the portfolio to deliver
currencies at future dates. Open sale and purchase contracts at April 30, 1999,
were as follows:
<TABLE>
<CAPTION>
Net
Contracts Unrealized
to In Exchange Settlement Appreciation
Deliver For Date Value (Depreciation)
----------------- ----------------- --------------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
International Small Cap
- -----------------------
Sales
Euro....................... 48,604 $51,564 5/03/99 $51,345 $219
============
International Equity
- --------------------
Sales
Swiss Franc ............... 1,062,490 $ 748,908 5/20/99 $ 697,954 $ 50,954
Australian Dollar ......... 492,216 313,000 07/01/99 325,792 (12,792)
Euro ...................... 1,844,925 2,074,123 5/20/99 1,951,549 122,574
Japanese Yen .............. 14,597,400 120,000 5/20/99 122,571 (2,571)
Japanese Yen .............. 235,934,928 2,004,000 6/17/99 1,988,324 15,676
Singapore Dollar .......... 487,270 283,000 5/24/99 282,662 338
------------- ------------ ------------
$5,543,031.00 $5,368,852 13,443,179
------------- ------------ ------------
Purchases
$720,088 CHF 1,062,490 5/20/99 $697,954 (22,134)
318,660 AUD 492,216 5/20/99 325,792 7,132
1,991,246 EUR 1,844,925 5/20/99 1,951,549 (39,696)
122,461 JPY 14,597,400 5/20/99 122,571 109
995,380 JPY 117,967,454 6/17/99 994,162 (1,218)
281,700 SGD 478,270 5/24/99 282,662 962
-------------- ------------ ------------
$4,429,535 $4,374,690 ($54,845)
-------------- ------------ ------------
$119,334
============
</TABLE>
68
<PAGE>
NORTH AMERICAN FUNDS
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 8, continued
<TABLE>
<CAPTION>
Net
Contracts Unrealized
to In Exchange Settlement Appreciation
Deliver For Date Value (Depreciation)
--------------- --------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Global Equity
- -------------
Sales
Euro ........................ 7,100,000 $ 7,752,134 10/12/99 $ 7,583,436 $ 168,698
Japanese Yen ................ 58,508,832 491,712 5/06/99 489,942 1,770
----------- =========== -----------
$ 8,243,846 $ 8,073,378 $ 170,468
----------- ----------- ===========
Strategic Income
- ----------------
Sales
Euro ........................ 2,445,068 $ 2,744,174 5/14/99 $ 2,585,354 $ 158,820
Purchases
$ 1,370,348 EUR 1,257,488 5/14/99 1,329,637 ($ 40,711)
575,246 EUR 539,123 5/28/99 570,582 (4,664)
========== =========== -----------
$1,954,594 $ 1,900,219 ($ 45,375)
---------- ----------- -----------
$ 113,445
===========
</TABLE>
69
<PAGE>
Trustees
Bradford K. Gallagher, Chairman
William F. Achtmeyer
Donald B. Allen
William F. Devin
Kenneth J. Lavery
Officers
Bradford K. Gallagher, President
Joseph T. Grause, Jr.,
Vice President and Treasurer
John I. Fitzgerald, Secretary
Distributor
CypressTree Funds Distributors, Inc.
286 Congress Street
Boston, MA 02210
Adviser
CypressTree Asset Management Corporation, Inc.
125 High Street
Boston, MA 02110
Transfer and Dividend Agent
State Street Bank and Trust Company
P.O. Box 8505
Boston, MA 02266-8505
Independent Accountants
PricewaterhouseCoopers LLP
One Post Office Square
Boston, MA 02109
North American Funds Shareholder Service
286 Congress Street
Boston, MA 02210
800-872-8037
<PAGE>
151 NAF0499:90310
Bulk Third Class
U.S. Postage
Paid
Permit No. 19
Hudson, MA
